MANAGEMENT

OF
FINANCIAL
SERVICES
 Course Contends:
Objectives
To provide the inputs in respect of various aspects regarding
the management of Financial services, Compliance with regulatory
authorities, and Other Issues.
• Merchant Banking – SEBI Guidelines – Role and Functions of a Merchant
Banker –Project Finance –Loan Syndication–Project Evaluation/Appraisal.
• Issue Management –Equity and debt instruments. New Instruments of
Finance,
Financial Engineering – Debentures with options- Financing of Mega Projects.

• Rehabilitation of Sick Units – SICA ACT-BIFR Sec 72-A Mergers,

Diversification
and Expansion Strategies.

• Credit Rating in India, Consumer Finance, Asset Credit Schemes and Hire
Purchase, Bill Discounting and Factoring.
• Disinvestments, Venture Capital, Securitization.

• Leasing – Tax & Legal Aspects-Financial evaluation – Lessor V/s Leese

Structuring of Lease rentals. LBO’s – Financial Swaps – Interest Swaps
 INDIAN FINANCIAL SYSTEM

FINANCIAL FINANCIAL FINANCIAL

MARKETS INSTITUTIONS ASSETS

• Capital • FBI
Market -Commercial • Shares
(SEBI-1988- Bank
- Co-op Bank •Bonds
1992)
- NABARD(82)
• Money •Debentures
• NBFI
Market -IDBI
- RBI(1935) - UTI •Equities, etc.
- IBRA(1949) -ICICI
- LIC, etc.
 MERCHANT BANKING
IT REFERS TO A BANK WHO DEALS WITH MONEY
MARKET ACTIVITIES, LENDING, UNDERWRITING
FINANCIAL ADVICE AND INVESTMENT SERVICES,
WHOSE ORGNIZATION IS CHARACTERIZED BY A
HIGH PROPORTION OF PROFESSIONAL STAFF & ABLE
TO APPROACH PROBLEMS IN AN INNOVATIVE
MANNER TO MAKE & IMPLEMENT DECISIONS
RAPIDLY.
The term MERCHANT BANKING refers to the
group of merchants, assisting in financing the
transactions of other merchants, in addition to
their own trade.

“ LE MERCHAND BANQUER ”
(Trader- Entrepreneur)

* Structure of Merchant Banking in India *

(w.r.t. features of Definition)
 Roles/ Functions of Merchant Banking
in India
• It helps in raising the EURO-DOLLAR loans.
• Issuing of foreign currency bonds
• Financing the local authorities
• Financing the import of Capital Goods
• Financing ships, Hydro-power installation, Railways etc.
• Helps in Mergers & Takeovers
• Helps in valuation of Assets
• Investment Management
• Promotion of Investment Management
 AREAS FOCUSED:

1)Project Counselling
2)Pre-investment activities
3)Project Reports
4)Helps in designing the Capital Structure, Issue
Management, Loan Syndication
5)Mobilization of Funds from NRIs
6)Provision of International Financial Advisory Services
(IFAS)
7)Involvement in Stock-broking, Venture Capital, Public
issues of Securities
8)It deals with Buy-back of Shares
9)Active involvement in servicing every financial need of
the client.
 SERVICES OF A MERCHANT BANKER
CORPORATE PROJECT
COUNSELLING COUNSELLING

LOAN MANAGEMENT OF
SYNDICATION CAPITAL ISSUES

CORPORATE
PORTFOLIO
ADVISORY
MANAGEMENT
SERVICES

CONSULTANCY
ADVISORY SERICES
TO SICK
TO MERGERS & T/O
INDUSTRIAL UNITS

ISSUE
LEASING
MANAGEMENT
 RULES & REGULATIONS FORWARED
BY SEBI

1)Merchant Bankers are governed by MB rules.

2)Rationale behind the notifications is the growth &
development of Primary Market (Security Market)
3)Protect investor's interest
4)Objective s of Rules & Regulations
5)Application for granting certificate by SEBI
6) The Registrar of Companies has been advised that the
prospectus for public issue can only be filed by Merchant
Bankers, authorized by SEBI, are being given a code
number.
7)Categories of Merchant Bankers