Jagannath International Management School, Kalkaji

(Please write your Roll No. immediately) Roll No. __________

End Term Examination
VI-Trimester PGDM & PGDM-(IB) May 2021
Batch (2019-21)
Paper Code: G 306/I 301
Subject: Financial System and Services
Time: 2.5 Hours M. Marks: 50

Note: From Q.1 to Q.4 Attempt any 3 and Q.5 is compulsory.

Q.1 Discuss five important financial services provided by the Indian Financial system .

Q.2 A wants to sell 750 shares of Exide for Rs 350 each. What is the process of selling the shares?

Q.3 In what circumstances does a company have to prepare a Red Herring Prospectus?

Q.4 Commercial banks are offering several new services to customers during Covid-19 period.
Can you discuss some of them that have been helpful?
Q.5 Case study

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In the year 2020 there was an outbreak of a very serious disease called Covid 19. Right from
March to May 2020 there was a lockdown and all the services were closed. Everything went
online from education, corporate organizations, small business to financial services. The
world had a tough time trying to control this serious illness. People had no work and they
had to return to their hometown.

All financial services were through the internet. Whether they were mutual funds or banks or
insurance companies they had to conduct business online.

The share market was anyway online through the DEMAT system and of course during the
lockdown period it did not operate but it soon opened up once the government declared that
the markets would open. In the past during world war 1 and world war 2 and in other crisis
periods shares always fell but gold price rose. This means that there is an inverse relationship
between gold and the share market.

Since there was no work it was expected that the share market would fall and the economy
would be in dumps. What was different this time was that the stock market did not fall. I
noted that all sectors were not doing well but there were at least three sectors that did well.
Look at the tables below of the BSE Index and Gold Index of one year and see that the stock
market fell in February and March which was not the peak Covid period but after that it was
steadily rising. Analyze the tables.

The price of gold increased in June, July, August and remained more or less stable and high
and was marginally increasing or correcting itself increasing throughout the period.

Study the tables answer the following questions.

a) What are the reasons for the share market to boom during the covid period?
b) Why did the price of gold also keep on increasing?
c) What was the role played by mutual funds during the period?
d) Which three sectors did well during the Covid -19( first phase period) and why?

Table 1: 24 K Gold Price 2020

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 Jagannath International Management School, Kalkaji

Source: https://www.myloancare.in/gold-rate-india/

Table 2 : BSE Sensex 30 Historical Data

Source:https://in.investing.com/indices/sensex-historical-data?
end_date=1609353000&interval _sec= monthly & st_date=1577817000

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