Grade "A+" Accredited by NAAC with a CGPA of 3.46
The objective of this paper is to know the different aspects of Investment banking and financial services such as Issue Management, Leasing, Hire Purchase, Factoring and Forfaiting, Insurance, Credit Rating, Securitization and Venture Capital Financing, Mergers and acquisition and the detailed SEBI guidelines on issue management.
At the end of the course, students should be able to:
Unit 1 (2 Weeks)
Introduction: An Overview of Indian Financial System, Investment Banking in India, Recent Developments and Challenges ahead, Institutional structure and Functions of Investment / Merchant Banking; SEBI guidelines for Merchant Bankers, Registration, obligations and responsibilities of Lead Managers, Regulations regarding Continuance of association of lead manager with an issue
References:
Khan M.Y. Financial Services, 7th edition (Chapter 13)
Website of SEBI and RBI
Unit II (3 Weeks)
Issue Management: Public Issue: classification of companies, eligibility, issue pricing, promoter’s contribution, minimum public offer, prospectus, allotment, preferential allotment, private placement, Book Building process, designing and pricing, Green Shoe Option; Right Issue: promoter’s contribution, minimum subscription, advertisements, contents of offer document, Bought out Deals, Post issue work & obligations, Investor protection, Broker, sub broker and underwriters.
References:
Khan M.Y. Financial Services, 7th edition (Chapter 14)
Machiraju, H. R .(2019) Indian financial system New Delhi, S.Chand P:ublishing House, 5th ed (Chapter 12,13 and 14)
Website of SEBI and RBI
Unit III (3 Weeks)
Leasing and Hire Purchase :Concepts of leasing, types of leasing – financial & operating lease, direct lease and sales & lease back, advantages and limitations of leasing, Lease rental determination; Finance lease evaluation problems Lessee’s angle (NPV (L). PV and IRR methods) and Lessor’s perspective, Hire Purchase interest & Installment, difference between Hire Purchase & Leasing, Choice criteria between Leasing and Hire Purchase, mathematics of HP, Factoring, Forfeiting and its arrangement, Housing Finance : Meaning and rise of housing finance in India, floating vs. fixed rate.
References:
Khan M.Y. Financial Services, 7th edition (Chapter 4,5,6 and 8)
Website of SEBI and RBI and other related we courses
Unit IV (4 Weeks)
Venture Capital: Concept, history and evolution of VC, the venture investment process, various steps in venture financing, incubation financing. Insurance: concept, classification, principles of insurance, IRDA and different regulatory norms, operation of General Insurance, Health Insurance, Life Insurance. Credit Ratings: Introduction, types of credit rating, advantages and disadvantages of credit ratings, Credit rating agencies and their methodology, International credit rating practices. Securitization: Concept and Process, Credit Enhancement parties to a Securitization Transaction, Instruments of Securitization, Types of Securities, Securitization in India.
Mergers and Acquisitions – Introduction of mergers and acquisitions, benefits of mergers, the procedure and theories of mergers, acquisitions and takeovers in India and anti-takeover strategies.
References:
Khan M.Y. Financial Services, 7th edition (Chapter 8,9,10 and 17)
Website of SEBI and RBI
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