Investment Banking and Financial Services

Teacher

Debi Prasad Satapathy

Category

Core Courses

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Course Name : Investment Banking And Financial Services

Code(Credit) :CUTM1223 (4-0-2)

Course Objectives

  • The objective of this paper is to know the different aspects of Investment banking, mergers and acquisition and the detailed SEBI guidelines on issue management.
  • This course  will help you to perform valuation of companies & prepare reports on  important components of Investment Banking such as Mergers & Acquisitions, Project Finance, IPO Analysis etc.

Learning Outcomes

  • Orientation about banking and financial concepts covered Managing investment in primary market and secondary market.
  •  Apply learning from this program will help you to get opportunities to work with Investment Banking companies.

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, 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

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

Session Plan

Session 4

Regulation of Merchant Bankers in India

Regulation merchant banker

Session 6

Recent Challenge of Merchant Banks

Recent Challenge of Merchant Banks

merchant bankingmerchnat banking

Session 10

Introduction to Issue management

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Session 2

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Case Studies

The formal Merchant Banking in India started in 1969 when Grind Lays bank set up its merchant banking division Later SBI floated its merchant banking division in 1972 The origin of merchant banking is to be traced to Italy in late medieval times and France during the seventeenth and eighteenth centuries. The Italian merchant bankers introduced into England not only the bill of exchange but also all the institutions and techniques connected with an organised money market. Merchant banking consisted initially of merchants who assisted in financing the transactions of other merchants in addition to their own trade. In France, during seventeenth and eighteenth centuries a merchant banker (le merchant Banker) was not merely a trader but an entrepreneur par excellence. He invested his accumulated profits in all kinds of
promising activities.  He added banking business to his merchant activities and became a merchant banker.

Case Studies

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    Dr. Satapathy is Assistant Professor (Finance and Accounting) at CUTM. He holds a master’s degree in finance and control from Utkal university. He also has completed doctoral level fellow programme in management from NIFM Faridabad. He has more than 11 Years of teaching, training and research experience. He has worked at VIT university Bhopal and […]