BA5011

Merchant Banking and Financial Services

HBS > Professional Electives > Merchant Banking and Financial Services
Course ID
BA5011
Level
Post Graduation
Semester
Semester III

OBJECTIVES:
To enable student
• Understand the modes of issuing securities
• Acquire financial evaluation technique of leasing and hire purchase

UNIT I MERCHANT BANKING
Introduction – An Over view of Indian Financial System – Merchant Banking in India – Recent Developments and Challenges ahead – merchant banking services offered by banks – NBFC’S offering merchant banking – Banking system – types of banks – payment banking -Legal and Regulatory Framework – Relevant Provisions of Companies Act- SERA- SEBI guidelines- FEMA, etc. – Relation with Stock Exchanges and OTCEI.

UNIT II ISSUE MANAGEMENT
Role of Merchant Banker in Appraisal of Projects, Designing Capital Structure and Instruments – Issue Pricing – Book Building – Preparation of Prospectus Selection of Bankers, Advertising Consultants, etc. – Role of Registrars –Bankers to the Issue, Underwriters, and Brokers. – Offer for Sale – Green Shoe Option – E-IPO, Private Placement – Bought out Deals – Placement with FIs, MFs, FIIs, etc. Off – Shore Issues. – Issue Marketing – Advertising Strategies – NRI Marketing – Post Issue Activities.

UNIT III OTHER FEE BASED SERVICES
Mergers and Acquisitions – Portfolio Management Services – Credit Syndication – Credit Rating – Mutual Funds – Business Valuation.

UNIT IV FUND BASED FINANCIAL SERVICES
Leasing and Hire Purchasing – Basics of Leasing and Hire purchasing – Financial Evaluation.

UNIT V OTHER FUND BASED FINANCIAL SERVICES
Consumer Credit – Credit Cards – Real Estate Financing – Bills Discounting – factoring and Forfeiting – Venture Capital – venture debt funds – start up financing.

TOTAL: 45 PERIODS

OUTCOMES:
• Good knowledge on merchant banking activities.

REFERENCES :

  1. M.Y.Khan, Financial Services, Tata McGraw-Hill, 12th Edition, 2012.
  2. Nalini Prava Tripathy, Financial Services, PHI Learning, 2011.
  3. Machiraju, Indian Financial System, Vikas Publishing House, 2nd Edition, 2010.
  4. J.C.Verma, A Manual of Merchant Banking, Bharath Publishing House, New Delhi.
  5. Varshney P.N. & Mittal D.K., Indian Financial System, Sultan Chand & Sons, New Delhi.
  6. Sasidharan, Financial Services and System, Tata Mcgraw Hill, New Delhi, 2nd Edition, 2011.
  7. Website of SEBI.
  8. Madura, Financial Institutions & Markets, 10th edition, Cengage, 2016.