LEVEL-UG

L T P/S SW/F TOTAL

W CREDIT
UNITS
4 - - 4

COURSE TITLE: BASICS OF FINANCIAL SERVICES

Course Code:

Credit Units: 04

Course Objectives:
 To acquaint the students with the financial services industry.
 To acquaint students with functions of Financial Services.

Pre-requisites: Basic Knowledge of Financial management.

Student Learning Outcomes:

 On the completion of this course students should be able to understand the financial services industry.
 Students should employable in Financial Services industry

Course Contents/Syllabus:
Weightage (%)
Module I: Financial Services 15
Descriptors/Topics
 Role of Financial Services in economic development.
 Evolution of Financial Services Sector in India.
 Marketing of Financial Services (Introduction)
Module II: Merchant banking 15

 Overview of financial services industry.

 Merchant banking – pre and post issue management,
 Underwriting.
 Regulatory framework relating to merchant banking in India.
Module III: Venture Capital and Private Equity 15
Descriptors/Topics
 Venture Capital and Private Equity: Concept, classification, Stages, Process, Entry and Exit
Strategies, Pitfalls to be avoided
 Analyzing Venture capital Proposals.
 Venture Capital Financing in India.
 Role of IVCF.
 Preparation and evaluation of Business plan.
Module IV: Factoring & Forfaiting 15
Descriptors/Topics
 Factoring Services - Features Merits and Demerits, Cost Benefit Analysis.
 Bank guarantees
 Letter of credit.
 Counseling.
 Forfaiting: Features, merits & Limitations
Module V : Leasing and Hire Purchase 15
Descriptors/Topics
 Development of Leasing and Hire Purchase,
 Types of Leasing, - Purchase. Consumer and housing finance.
 Pricing Methodology and Financial analysis, Taxation, Legal Framework for Leasing and Hire
Purchase Companies .
 Consumer finance and its role.
 Concept of Carbon Credit

Module VI: Mutual funds 15

 Descriptors/Topics
 The concept & Role of M/Fs
 History of M/Fs in India
 Types of M/Fs
 Fund Structure & constituent
 Selecting the right Investment Products for Investors, Comparison of Investment products
 Measuring of Risk In M/Fs
 Recommending model Portfolios & selecting the right funds.

Module VII: Credit rating & other financial services

Descriptors/Topics 10
 Credit rating -concept of Credit rating,
 Types of credit rating,
 Advantages and Disadvantages of credit rating,
 Credit rating agencies and their methodology and process,
 Individual Credit rating,
 Sovereign Credit Rating Practices.
 Custodial Services,
 Credit Cards.

Pedagogy for Course Delivery: Tutorials, Interactive sessions, Case studies, Field visits, Management games, Extensive research
projects, Seminars, Weekend experience in companies - the course is covered by adopting a combination of lecture methods, class
presentation by groups of students, self study sessions. Each student is required to do the back ground reading from the specified
chapters of the prescribed book before coming to class. Cases are also to be analyzed, discussed in groups (teams) outside the class as
preparatory work.

Lab/ Practicals details, if applicable: Introduction to on line markets-Mutual fund trading.

List of Experiments: Visit to Financial Intermediary offices.
Assessment/ Examination Scheme:

Theory L/T (%) Lab/Practical/Studio (%) End Term Examination

100
70
Theory Assessment (L&T):
Continuous Assessment/Internal Assessment End Term Examination

Components (Drop Class Test Viva Assignment Case Study End Term Exam
down)
Weightage (%) 10 0 10 5 70

Lab/ Practical/ Studio Assessment:

Continuous Assessment/Internal Assessment End Term Examination

Components (Drop down

Weightage (%)

Text & References:

Text:
Khan, M. Y. Indian Financial System, Tata McGraw Hill
Khan, M.Y. Financial Services, Tata McGraw Hill

References:
Bhole L.M, Financial Institutions and Markets: Structure, Growth & Innovations, Tata McGraw Hill
Pandey, I.M. Ninth Edition, Financial Management, Vikas Publishing House Pvt. Ltd.

Important Websites
 (a) www.sebi.gov.in
(b) www.rbi.org.in
(c) www.finmin.nic.in
(d) www.dipp.nic.in
(e) www.mca.gov.in
(f) www.incometaxindia.gov.in
(g) www.indiataxes.com

Any other Study Material:

Economic Times
Mint
Business Standard