II YEAR – III SEMESTER

COURSE CODE: 7MBA3EA

ELECTIVE COURSE –FINANCE-

MERCHANT BANKING AND FINANCIAL SERVICES

Unit I               MERCHANT BANKING              

Introduction – An Over view of Indian Financial System – Merchant Banking in India – Recent Developments and Challenges ahead – Institutional Structure – Functions of Merchant Banking  - Legal and Regulatory Frameworks – Relevant Provisions of Companies Act- SERA- SEBI guidelines- FEMA, etc. - Relation with Stock Exchanges, OTCEI and  NSE.

Unit II             ISSUE MANAGEMENT                                                                                  

Role of Merchant Banker in Appraisal of Projects, Designing Capital Structure and Instruments – Issue Pricing – Pricing – Preparation of Prospectus Selection of Bankers, Advertising Consultants, etc. - Role of Registrars – Underwriting Arrangements - Dealing with Bankers to the Issue, Underwriters, Registrars, and Brokers – Offer for Sale – Book – Building – Green Shoe Option – E-IPO Private Placement – Bought out Deals – Placement with FIs, MFs, FIIs, etc.

Unit III           OTHER FEE BASED MANAGEMENT                                             

Mergers and Acquisitions – Portfolio Management Services – Credit Syndication – Credit Rating – Mutual Funds - Business Valuation.

Unit IV           FUND BASED FINANCIAL SERVICES                                           

Leasing and Hire Purchasing – Basics of Leasing and Hire purchasing – Financial Evaluation – Tax Implication.

Unit V             OTHER FUND BASED FINANCIAL SERVICES                                          

Consumer Credit – Credit Cards – Real Estate Financing – Bills Discounting – Recent Developments in Factoring and Forfeiting – Venture Capital.