Investment Banking and Financial Services
Teacher
Dr. Subhramaya Nayak
Category
Core Courses
Course Attendees
Still no participant
Course Reviews
Still no reviews
Code(Credit) :CUTM1223 (4-0-2)
Course Objectives
- The objective of this course is to know the different aspects of Investment banking and other financial services such as leasing, hire purchase, insurance, credit rating , etc and the detailed guidelines for issue management by SEBI.
Course Outcomes
- Orientation about banking and financial concepts covered Managing investment in primary market and secondary market.
- Evaluate critically a range of theories and regulations relevant to financial institutions and markets and apply these theories in the analysis of issues related to these institution and market.
- Gain a comprehensive understanding of investment banking and financial services, including key concepts, theories, and practices in areas such as financial markets, asset management, investment analysis, risk management, and financial decision.
| COS | COURSE OUTCOMES | MAPPING COS WITH POS (High-3; Medium-2; Low-1) |
| CO1 | Orientation about banking and financial concepts covered Managing investment in primary market and secondary market. | PO1(3) |
| CO2 | Evaluate critically a range of theories and regulations relevant to financial institutions and markets and apply these theories in the analysis of issues related to these institution and market. | PO1(3), PO2(2) |
| CO3 | Gain a comprehensive understanding of investment banking and financial services, including key concepts, theories, and practices in areas such as financial markets, asset management, investment analysis, risk management, and financial decision. | PO1(3), PO2(2), PO10(3) |
Teaching and Learning Process:
Lecture, discussion, PowerPoint presentations, demonstration of live trading.
Course Syllabus
Module I
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
Module II
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, 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
Module III
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 (only Lessee’s angle), Hire Purchase interest & Instalment, difference between Hire Purchase & Leasing, Choice criteria between Leasing and Hire Purchase mathematics of HP, Factoring, forfaiting and its arrangement, Housing Finance : Meaning and rise of housing finance in India, Fixing the amount of loan, repricing of a loan, floating vs. fixed rate, Practical problems on housing finance.
Module IV
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, securitization as a funding mechanism, Traditional and non-traditional mortgages, Graduated-payment mortgages (GPMs), Pledged Account Mortgages (PAMs), Centralized Mortgage obligations (CMOs), Securitization of non mortgage assets, Securitization in India.
REFERENCES
1. M.Y.Khan: Financial Services, Tata McGraw –Hill.
2. Machiraju: Indian Financial System, Vikas Publishing House.
3. J.C.Verma: A Manual of Merchant Banking, Bharath Publishing House.
4. Merchant Banking and Financial services, S Guruswamy, TMH
Websites:
Securities and Exchange Board of India (sebi.gov.in)
Reserve Bank of India (rbi.org.in)
Session Plan
Session 1
The Structure of Financial System
https://www.enotesmba.com/2019/12/ppt-
Session 2
Investment Banking in India
https://www.youtube.com/watch?v=-PkN15TtFnc
https://economictimes.indiatimes.com/definition/investment-banking Economics times reading
Session 7
SEBI regulation for Merchant Banking
Session 8
Role of a merchant Banker in the primary market issue
https://accountlearning.com/role-and-responsibilities-of-merchant-bankers-in-public-rights-issue/
Session 10
Introduction to Issue management
Microsoft Word - Primary%20markets%20-%20received%20from%20CFD%20DIL%20%20-… (sebi.gov.in)
Session 11
Identify different kind Issue management
Session 18
Reverse Book Building Process
https://www1.nseindia.com/products/content/equities/ipos/reverse_bookbuilding.htm
Session 19
Broker and sub Broker
https://www.indiainfoline.com/business-partners/difference-between-broker-and-sub-broker.html
Session 22
Evolution of Indian Leasing Industry
Leasing Industry in India (With Statistics) (yourarticlelibrary.com)
Session 23
Concept and characteristics of Hire purchase.
Hire Purchase Agreements: Definition, How They Work, Pros and Cons (investopedia.com)
Session 24
Difference between hire purchase and leasing.
Difference Between Hire Purchasing and Leasing (with Comparison Chart) - Key Differences
Session 25
Housing Finance
What is Housing Finance Company? definition and meaning - Business Jargons
Session 27
Insurance - Meaning, Types, Insurance Industry in India and
related reforms
https://cleartax.in/s/insurance
https://www.investopedia.com/terms/i/insurance.asp#:~:text=Insurance%20is%20a%20contract%20(policy,most%20common%20forms%20of%20insurance.
https://www.studyiq.com/articles/insurance-sector-reforms/
https://unacademy.com/content/bank-exam/study-material/general-awareness/overview-on-reforms-of-insurance-sector-in-india/
Session 28
Factoring and Forfeiting
https://navi.com/blog/factoring-and-forfaiting/#:~:text=Definition,both%20domestic%20and%20international%20trade.
Session 29
Evaluation of a
Factor - Evaluation of Factoring - Factoring in India current
Developments
https://www.1stcommercialcredit.com/blog/evaluate-factoring-companies-small-business
https://www.slideshare.net/kushal92walia/factoring-42409769
Session 30
Factoring vis-à-vis Forfeiting
https://navi.com/blog/factoring-and-forfaiting/#:~:text=Definition,both%20domestic%20and%20international%20trade.
Session 31
Venture Capital
https://www.investopedia.com/terms/v/venturecapital.asp#:~:text=Key%20Takeaways,%2C%20and%2For%20managerial%20experience.
Session 32
Stages in venture capital
https://gouchevlaw.com/stages-venture-capital-financing/
Session 33
VC funding in India
https://www.bain.com/insights/india-venture-capital-report-2023/
https://www.coverfox.com/personal-finance/mutual-funds/venture-capital-funds/
Session 34
Credit Rating
https://www.bankbazaar.com/cibil/credit-rating-agencies-in-india.html
https://en.wikipedia.org/wiki/Credit_rating_agency
Session 35
How is the Rating Denoted?
https://scripbox.com/pf/credit-rating/
https://www.bankbazaar.com/cibil/credit-rating-agencies-in-india.html
Session 36
What do Credit Rating Agencies Rate? Discussion
https://www.investopedia.com/terms/c/creditrating.asp#:~:text=12-,Credit%20Ratings%20Scale,or%20C's%20is%20the%20lowest.
Session 37
Rating Process
https://www.indiaratings.co.in/data/Uploads/CriteriaReport/2022/The%20Rating%20Process.pdf
case study :
https://www.icra.in/Rating/Process
https://www.crisilratings.com/en/home/our-business/ratings/understanding-rating/rating-process.html
Session 38
Different credit rating agencies in India and internationally
https://www.paisabazaar.com/credit-score/credit-rating-agencies-in-india/
https://www.mymoneymantra.com/credit-rating-agencies
https://www.iasparliament.com/current-affairs/global-credit-rating-agencies#:~:text=The%20global%20credit%20rating%20industry,Standard%20%26%20Poor's%2C%20and%20Fitch.
Session 39
Concept of Securitization
https://www.imf.org/external/pubs/ft/fandd/2008/09/pdf/basics.pdf
Session 40
Challenges to the Securitization Act
https://www.taxmann.com/post/blog/overview-of-the-sarfaesi-act/
https://blog.ipleaders.in/overview-of-the-sarfaesi-axt-2002/
Session 41
Impact of Securitization on Banking
https://www.investopedia.com/ask/answers/042115/why-do-banks-securitize-some-debts-and-how-do-they-sell-them-investors.asp#:~:text=Benefits%20of%20Securitization&text=By%20reducing%20their%20debt%20load,additional%20liquidity%20for%20debt%20instruments.
https://link.springer.com/chapter/10.1007/978-3-319-60128-1_5
Case Studies
https://www.wallstreetmojo.com/investment-banking-case-studies/
https://vinodkothari.com/wp-content/uploads/2013/12/icicis-first-Indian-CDO.pdf
https://www.cram.com/essay/Indian-Credit-Rating-Agency-Case-Study/PCCFRBAHQG
Project for students
A study on investment banking in India
A Study on Credit rating agencies
A comparative study on ULIP plans of different companies
A Comparative Study on Housing Loan of Public Sector and Private Sector Banks
A study on Performance analysis of IPOs in India
Our Main Teachers
Financial Market and Services, Investment Management, Secondary Market, Mutual fund
Dr. Mahapatra is working as an Assistant Professor (Finance) at Centurion University of Technology & Management. She holds a master’s degree in finance from Ravenshaw university. After that she did her Master in Philosophy degree (M.Phil. in Management) from Ravenshaw University. She has also completed her Ph.D. in Commerce from Ravenshaw University. She has more […]