16MBAFM302 Investment Banking & Financial Services syllabus for MBA


Unit-1 Investment Banking 10 hours

Investment Banking- Introduction-Functions of Investment Banks- Types of Investment Banks- Investment Banking Services- Merchant Banking Services-Issue Management-Pre issue and Post issue obligations-Changing landscape of Investment Banking. Regulation of the Capital Market- SEBI regulations for merchant bankers, brokers and sub brokers, intermediaries and portfolio managers.

 

Underwriting: Concept – Devolvement - Business model - Underwriting in fixed price offers and book built offers.

Unit-2 Depository System 9 hours

Depository System: Objectives, activities, interacting systems, role of depositories and their services, Advantages of depository system -NSDL and CDSL. The process of clearing and settlement through Depositories, Depository Participants. Regulations relating to Depositories-SEBI (Depositories and Participants) Regulations 1996- Registration of depository and participant- Rights and Obligations of depositories and Participants.

Unit-3 Housing Finance 7 hours

Housing Finance: Role, Types of housing loans, Institutions and banks offering Housing Finance, Procedure and Interest rates. Income Tax Implication. Reverse mortgage loan.

 

Non-Banking Finance Companies: Types, Growth, Functions, RBI Guidelines, Prudential Norms.

Unit-4 Factoring 9 hours

Factoring: Origin, Types, Factoring mechanism, advantages, factoring charges, International factoring, Factoring in India.

 

Forfeiting: Origin, characteristics, benefits, difference between factoring and forfeiting, growth of forfeiting in India.

 

Securitization of debt: Meaning, Features, Special Purpose Vehicle, Types of securitisable assets, Benefits of Securitization, Issues in Securitization.

Unit-5 Venture Capital 9 hours

Venture Capital: Concept, features, Origin and the current Indian Scenario. Private equity- Investment banking perspectives in private equity

 

Microfinance: The paradigm - NGOs and SHGs - Microfinance delivery mechanisms – Future of micro finance.

 

Credit rating: Definition and meaning, Process of credit rating of financial instruments, Rating methodology, Rating agencies, Rating symbols of different companies. Rating agencies for SMEs.

Unit-6 Leasing 12 hours

Leasing: Concept, Steps in Leasing Transactions, Types of Lease, Legal frameworks, Advantages and disadvantages of Leasing, Contents of a Lease Agreement, Matters on Depreciation and Tax, Problems in leasing, Factors influencing Buy or Borrow or Lease Decision.

 

Hire Purchasing: Concepts and features, Hire Purchase Agreement, Comparison of Hire Purchase with Credit sale, Instalment sale and Leasing. Banks and Hire Purchase. Problems related to outright purchase, Hire purchase and Leasing.

(Question Paper: Case study-Problem on financial evaluation of leasing and hire purchase.)

 

Practical Components:

  • Students can study the procedure for the sanction of housing loans by a bank

 

  • Students can study the Procedure to open a Demat account and an Online Trading Account.

 

  • Students can visit a NBFC and study their operations

 

  • Students may visit a SHG/NGO and study the micro finance aspects

 

  • Visit a bank/financial institution providing factoring service and submit a report.

Last Updated: Tuesday, January 24, 2023