Investment Banking and Financial Services

Teacher

Dr. Subhramaya Nayak

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 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)

Home - IRDAI

CRISIL: Making markets function better

CareEdge | Ratings (careratings.com)

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 21

Types of Leasing

2. Leasing - An Overview (oracle.com)

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 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 […]