PSG INSTITUTE OF MANAGEMENT

FINANCIAL SERVICES

About the Course

The integration of financial markets across the globe has given rise to innovative
instruments, specialized institutions and varied regulations. These regulations have
resulted in the systematic growth of institutions and services. Financial regulations have a
far reaching impact on the growth of real sector and hence the economy. The focus of the
course would be on the institutions, services and the respective regulations.

Objectives of the Course

To understand the operating environment of financial service Industry

To be acquainted with the Intermediaries in the Industry and their respective roles
To discover the services provided in the Industry

Faculty: Dr. V.Srividya

R.No. 313
Student office Hrs 2-4 pm on Wednesday & Friday
Mail srividya.sathesh@gmail.com
Prescribed text R.Shanmugam, Financial Services, Wiley India Pvt. Ltd., First
edition, 2010
Readings unless mentioned refers to the prescribed text
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Session 1 ( 1 Hr )
Financial Markets & Services – An Introduction
Chapter 1, 2 & 3
Learning Objectives – Understanding of Financial Products
Structuring of Products
Difference between Product and service
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Session 2 ( 2 Hr)
Financial Institutions with reference to NBFCs
Readings : Chapter 13
Learning Objectives-Types, functioning & services -Regulations, Policies and Practices
Criteria/ Eligibility norms to be an NBFC
Ways of conducting business

Session 3 (1 Hr)
Leasing
Readings : Chapter 10
Learning Objectives - Understanding Lease as a source of Finance
Types and their benefits
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Session 4 ( 2 Hrs)
Leasing, Hire purchase and consumer finance
Chapter 4 & 5 M.Y.Khan, Financial Services, McGrawHill, 5th revised edition, 2010
Learning Objectives - Evaluating Lease vice verse., Hire purchase
vice verse Consumer Credit
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Session 5 ( 1 Hr)
Housing finance
Chapter 8 M.Y.Khan, Financial Services, McGrawHill, 5th revised edition, 2010
Learning Objectives - Understanding the business of HF
Refinance facilities
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Session 6 ( 2 Hrs)
Securitisation
Readings : Chapter 7
Chapter 8 M.Y.Khan, Financial Services, McGrawHill, 5th revised edition, 2010
Learning Objectives - Understanding asset based vice verce., MBS
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Session 7 & 8 ( 3 Hr )
Venture capital
Readings : Chapter 8
Learning Objectives - Understanding Indian venture capital scenario
Methods of financing
Regulations, structure
Venture capital - Valuation Techniques & Methods

Session 9 & 10 ( 3 Hrs)

Factoring Vs Bills discounting

Readings : Chapter 5
Chapter 6 & 7 M.Y.Khan, Financial Services, McGrawHill, 5th revised edition, 2010

Learning Objectives - Concept of Factoring

Types of Factoring
Benefits of using Factoring vs Bills Discounting

Session 11 &12 ( 3 Hr)

Credit Rating
Readings : Chapter 6
Learning Objectives - Understand the rating process for various instrument
Review the Credit Rating Process
Session 13 ( 2 Hrs)
Mutual funds
Readings : Chapter 11
Learning Objectives - To understand the structure of Mutual funds
Evaluation of schemes
Session 14 (3 Hr)
Intermediaries in Issue management
Chapter 13, 14, 15 M.Y.Khan, Financial Services, McGrawHill, 5th revised edition,
2010
Learning Objectives - Identifying the various parties involved in the issue process
Understanding their roles and responsibilities

Session 15 ( 1 Hr)
Stock Broking
Readings : Chapter 14
Learning Objectives - understanding the operations of Broking firm
Industrial Visit
Session 16 ( 2 Hrs)
Depositories
Readings : Chapter 9
Learning Objectives - Understanding Trade cycle, Settlement and clearing Services
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Session 17 ( 2 Hrs)
Personal finance
Learning Objectives - To understand the Wealth Management Process
To Match investments with investor objectives

Session 18 ( 2 Hrs)
Micro Finance Initiatives and Models
Learning Objectives - To know the various models operating in India
Various products and services offered by MFI
Evaluation of the MFIs
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Evaluation:

Test 20 Marks
Activity 20 Marks
Presentation 10 Marks

Test- two written tests for 10 marks each. No makeover would be allowed unless on
medical grounds.
Test 1 – Batch I 26/08/2010 and Batch II 27/08/2010
Test 2 – Batch I 23/09/2010 and Batch II 24/09/2010
Activity – This would be a group activity, with each group having not more than 4
members.
Finfair an exhibition of Financial services company to be organized by the students on 25
or 26/09/2010. The objective of this event is to give a hands on experience on the selling
of Financial products, an in-depth knowledge of various institutions and the services
offered by them.

Planner
Aug 2 –Aug 8 – Identify a company of their interest (preferably one that has a branch in
coimbatore) and understand the operations, services, products. Identify the features of
investment with the tax implication.
Aug 9-10 – register their choice of companies with student representatives, this would
ensure avoidance of duplication
Aug 10- 20 – Approach the companies with letters and get their consent for participation
Aug 21 -30 - Get a publicity plan, book for stalls
Aug 21 –Sept 20 – get trained in the company

Presentation - Individual work, Each student makes a presentation for not more than 10
minutes. The presentation should be on a financial service provider (1 Indian and 1
MNC), the type of institution, services provided, No. of branches & geographical spread,
Partnering institution and salient corporate news.

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