COURSE PLAN

Year :2009-2010

Sem: Odd

Management of Financial Services

Name of Faculty : Lokesh Payasi

Programme : MBA (Batch 09-11) Third Semester

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Gyan Ganga Institute of Technology & ManagementKhajuri Khurd, Raisen Road,

Course Description and Overall Goal

Management of Financial Services provides students with the knowledge of different financial services in India as well as in other

nation. This paper prepares students for responsible positions within the personal, commercial, trust, or administrative functions

of financial institutions or for positions in the sales, underwriting, or claims departments of insurance companies or agencies.The

objective of this paper is to acquaint the students about major financial services and institutions

Learning Objectives

On successful completion of this course students will be able to:

To understand the benefits of Financial Services

To Understand the Indian Financial System and its Evolution over the years.

To View the Functioning of Regulatory, Promotional Institutions, Banks and other Financial Intermediaries and of

the Functioning of Financial Markets .To Business and the need of Regulation to the Financial Service Industry.

To understanding the regulatory environment in which mutual funds operate; specifically, the nature, type of mutual

funds, financial analysis of varying product lines, differences in product attributes and taxation implications.

To understand the wide range of common retail financial products and services offered by financial institutions

To understand the detailed review of those primary and supplemental deposit, credit and special products and

services available to individuals and businesses through the financial institutions.

To understand the organizational, managerial and technological systems used by the banks in the business of

meeting clients' financial needs.

Inculcate advanced skills for handling emerging areas of financial services

This course provides students with the insight into the services, pricing, techniques, goals and objectives, management

styles, internal problems and risks of financial institutions, and the markets in which they operate. The course

accomplishes this insight by (i) profiling the financial, operating, and organizational characteristics of each type of

financial institution, and (ii) examining the services offered by these firms to the public.

Learning Methodology

The class will consist of a combination of case discussions, class discussions, student’s presentations and lectures. Student’s

preparation of assigned material and involvement in class discussion is essential for the success of the course and class

participation will count towards the final grade. Generally a student centered learning methodology will be used. The specific

activities will involve:

Class discussion on the theoretical aspects of the subject and related the concept in real life situations

Solving numerical questions

Daily quiz on the topic covered in the last session.

Method of Evaluation

Item of Evaluation Group / Individual Evaluation Marks

Class Participation/ case study Individual 5

Assignments (1) Individual 5

Surprise Tests / quiz Individual 10

Attendance 1 negative marks for each session missed

Text Books

1. Bhalla, V.K. Management of Financial Services, Anmol, New Delhi, 2001, referred as VKB

2. Gordan, E and K. Natarajan Financial Market and Services, Himalaya Publishing House, 1997,referred as GN

3. L M Bhole and Jitendra Mahakud Financial Institutions and Markets 5th Edition of McGraw-Hill referred as BM

4. R.M.Srivastava and Divya Nigam Management of Indian Financial Institutions Himalaya Publishing House 8th

Revised Edition 2008 referred as SN.

Class Participation

Students are expected to attend all classes regularly. A student’s absence does not relieve him or her of meeting all course

requirements. We are engaged in a learning community, one where we strive for an open exchange of ideas. Each of us has

responsibility in the exchange. Individual contributions will be assessed by the instructor and appropriate score will be taken

towards internal assessment.

Student’s Preparation

Students are required to prepare well before attending the classes. You should read the cases mentioned in the course outline

and / or cases announced before the session. You should read at least one of the text books mentioned in the prior readings

section of the course outline.

Total Time Duration

The course is scheduled for 38 sessions of 50 minutes each.

COURSE OUTLINE

Session 1,2 Topic: Introduction to Financial System and Services Implemented

Objective To understand the concept, importance, scope of Financial System

salient features, scope and problems,

Prior Reading VKB Ch-1 Pg.1-13, Ch-2 Pg.24-45

Learning Methodology Open discussion

Additional Reading BM Ch-4 Pg69-71 and 128-133 GN Ch-1st Pg 3-13,

Session 3 Topic: Role of financial Institution in financial markets Implemented

Objective To study the different types of financial institution in financial

market and their role in the financial industry

Prior Reading VKB-Ch-14 Pg 398

Learning Methodology Discussion and classroom teaching

Additional Practice SN Ch-1,2, BM Ch-1 Pg 3-7

Session 4,5 Topic: Financial Markets Implemented

Objective To understand different financial markets and its working style and

its and different financial foreign markets

Prior Reading VKB Ch.-23 Pg.659-670

Learning Methodology Discussion, quiz and classroom teaching

Additional Practice BM Ch-1 Pg 7-9 SN Ch. 3 Pg. 51-60, GN Ch.2,3,4 Pg.31-60 & 74-92 &102-

129+

Session 6 Topic: Regulatory Framework for Financial Services Implemented

Objective To understand the basics behind the rules and regulations and

also the regulatory and theoretical framework of financial services,

it include knowledge about IRDA and RBI and also SEBI.

Prior Reading VKB Ch.2 47-49

Learning Methodology Discussion and classroom problem solving

Additional Practice BM Ch.-4 Pg. 94-116, GN Ch-1 Pg.24-30

Session 7 Topic: Presentations Implemented

Objective Presentation for the first unit will be their. Each group will have 8

people and then they will give presentation on the financial system

in India with the example of one service and one institution.

Prior Reading

Learning Methodology

Additional Practice

After completing this session first three objective of the course plan will be achieved.

Session 8 Topic: venture capital financing Implemented

Objective To understand the concept of venture capital and its financing

Prior Reading GN Ch.12 Pg.292-311

Learning Methodology Discussion and presentation on subsidiary books

Additional Practice

Session 9 Topic: Management of Risk in Financial Services Implemented

Objective To study the measuring and managing various risks and exposure

Prior Reading GN Ch.8 Pg.217-220 & 240-244

Learning Methodology Discussion and classroom problem solving

Additional Practice

Session 10 Topic: Stock Exchange Operations Implemented

Objective To understand the concept of stock exchange and markets like

SENSEX and NIFTY, how they work and how secondary market

works.

Prior Reading VKB Ch.15 Pg.431-460

Learning Methodology Oral Quiz and classroom problem solving

Additional Practice BM Ch.23 Pg.714-736, SN Ch.3 Pg.51-63, GN Ch.4 Pg.102-155

Session 11 Topic: Mutual Fund Implemented

Objective To understand the Types of Mutual Funds. Mutual Funds in India-

Developing, Launching and Marketing of Schemes.

Prior Reading VKB Ch.6 Pg.145 & 2000

Learning Methodology Quiz and classroom problem solving

Additional Practice SN Ch.32 Pg.562-580, GN Ch.13 Pg.312-325

Session 12 Topic: Mutual Fund Implemented

Objective To understand the scheme of Computation and Relevance of NAV.Offshore Mutual Funds and Money Market

Mutual funds. And also

• Regulation of Mutual Funds.

• Techniques of Investment Analysis

Prior Reading GN Ch.8 Pg.327-347 0

Learning Methodology Oral Quiz and classroom problem solving

Additional Practice BM Ch.12 Pg.456-473 SN Ch.32 Pg.562-580

Session 13,14 Topic: Merchant Banking Services & Merchant Bankers Implemented

Objective After completion of this session student swill understand the MERCHANT BANKING and also

• Nature and Functions of Merchant Banking.• Regulation of Merchant Banking.• Present State of Merchant Banking in India.• Concept of merchant bankers

Prior Reading . VKB Ch.9 Pg.228-251 & 259-271

Learning Methodology Oral Quiz and classroom problem solving

Additional Practice SN Ch.2 Pg.25-50 GN Ch.9 Pg217-244

Session 15 Topic: Presentations Implemented

Objective Presentation for the 2nd unit. Each group will have 8 students

each.4 group will give presentation on any Mutual fund and other 4

will on venture capital (topic will be decided by the lottery)

Prior Reading

Learning Methodology

Additional Practice

4th and 5th objective will be covered after completing this session.

Session 16,17 Topic: Issue shares Implemented

Objective To understand the concept of primary market and the regulatory

framework for right issue and initial issue of shares.

Prior Reading VKB Ch. Pg.454-475

Learning Methodology Oral Quiz and classroom problem solving

Additional Practice BM Ch.23 Pg.736-757 & 771, GN Ch.3 Pg.74-95

Session 18 Topic: Managing of issue bonds Implemented

Objective To understand the types of bonds and how it is different with other

financial products like shares and mutual fund

Prior Reading BM Ch.24 Pg.813

Learning Methodology Oral Quiz and classroom problem solving

Additional Practice

Session 19 Topic: Fixed Deposits Implemented

Objective To understand the concept of fixed deposit, why FD is so famous

with investors and not with speculator.

Prior Reading BM Ch.3 Pg.64 SN Ch.14 Pg.254-260

Learning Methodology Oral Quiz and classroom problem solving

Additional Practice

Session 20 Topic: Mobilizing of Fixed Deposits Implemented

Objective To understand the different FD scheme for different segment and

also Mobilizing the FD

Prior Reading Notes will be provided by the lecturer

Learning Methodology Classroom teaching and numerical solving

Additional Practice

Session 21,22 Topic: Inter-Corporate Loans Implemented

Objective To understand the meaning, advantages, limitations and types of

Loans, it also covers the individual loan and corporate loan.

Prior Reading GN Ch.15 Pg.378-394

Learning Methodology Class room teaching and solving numerical

Problems

Additional Practice SN Ch.17

Session 23,24 Topic: merger/amalgamation and acquisition/takeover Implemented

Objective To understand the concept of M & A and its debt scruitnising, to

understand about rules and regulations and govt. policies about

the same

Prior Reading VKB Ch.34 Pg.935-975

Learning Methodology Class room teaching and solving numerical

Problems

Additional Practice BM Ch.9 Pg.350

6th objective will be covered after completing this session.

Session 25 Topic: Other Financial services Implemented

Objective To study about different financial services which is for corporate as well as individual

Prior Reading VKB Ch.22,23

Learning Methodology Oral quiz and classroom problem solving

Additional Practice BM Ch. Pg. SN Ch. Pg. GN Ch.8 Pg.217-244

Session 26 Topic: Leasing Implemented

Objective To understanding the concept of Leasing its Concepts, Classification & Accounting. And also its Legal & Tax Aspects, its Financial Evaluation.

Prior Reading VKB Ch.26 Pg.724-745

Learning Methodology Oral quiz and classroom problem solving

Additional Practice BM Ch.13 Pg.504-504 GN Ch.11 Pg.272-280 & 289-291

Session 27,28 Topic: Hire Purchase Implemented

Objective To develop an understanding about Hire Purchase its Conceptual Framework, Legal Aspects & Taxation.It’s also cover Features, Accounting & Reporting, Financial Evaluation of hire purchase.

Prior Reading GN Ch.10 Pg.264-271

Learning Methodology Oral quiz and classroom problem solving

Additional Practice BM Ch.13 Pg.501-503

Session 29 Topic: Housing Finance Implemented

Objective To understand the concept of Housing finance its Directions, Prudential NormsTo understand the Housing Finance Schemes.

Prior Reading VKB Ch.27 Pg..752-775

Learning Methodology Oral quiz and classroom problem solving

Additional Practice BM Ch.13 Pg.505-508 SN Ch.34 Pg.618-628

Session 30,31 Topic: Credit Rating Implemented

Objective To understand the concepts, Meaning, Benefits, Types of credit rating, different credit rating institutions and its operations.To learn about the objective and functions of some credit rating agency

Prior Reading VKB Ch.17 Pg.493-530

Learning Methodology Classroom discussion

Additional Practice BM Ch.13 Pg.519-521 GN Ch.17 Pg.422-435

Session 32 Topic: Credit Cards Implemented

Objective To understand the Concepts, Significance, Types of Credit Cards in India and its history.

Prior Reading VKB Ch.11 Pg.304-324

Learning Methodology Oral quiz and classroom problem solving

Additional Practice BM Ch.3 Pg.309 GN Ch.18 Pg.438-450

Session 33 Topic: Presentations Implemented

Objective Presentation for the 3rd unit. Each group will have 8 students

each.4 group will give presentation on Hire Purchase and leasing

and other 4 will on Credit Rating and Credit Card (topic will be

decided by the lottery)

Prior Reading

Learning Methodology

Additional Practice

7th objective will be covered after completing this session.

Session 34 Topic: Banking and Insurance Implemented

Objective To understand the meaning of insurance and its operation

and its tax benefit by 80c and 80d

Prior Reading VKB Ch.21 Pg.612-640

Learning Methodology Oral quiz and classroom problem solving

Additional Practice BM Ch.10,11 Pg.359-427 SN Ch.30,31 Pg.532-555

Session 35,36 Topic: Venture Capital Implemented

Objective To understand the concept of venture capital and Mode of Financing

Prior Reading VKB Ch.25 Pg.702-720

Learning Methodology Oral quiz and classroom problem solving

Additional Practice BM Ch.13 Pg.515-521 GN Ch.12 Pg.292-311

Session 37 Topic: Factoring and Forfeiting Implemented

Objective To understand the Meaning, Characteristics, and Types of

Factoring. To understand the difference between Factoring

and Forfeiting

Prior Reading GN Ch.14 Pg.356-377

Learning Methodology Oral quiz and classroom problem solving

Additional Practice BM Ch.13 Pg.518

Session 38 Topic: Bill Discounting Implemented

Objective To understand how Bill Discounting works in big industry and also how industry get benefit by it.

Prior Reading GN Ch.14 Pg.348-356

Learning Methodology Oral quiz and classroom problem solving

Additional Practice

Session 39 Topic: Presentations Implemented

Objective Presentation for the 5th unit. Each group will have 8 students

each.3 group will give presentation on Factoring and Bill, other 3

will on Banking and Insurance and other 2 will be on Bill

Discounting (topic will be decided by the lottery)

Prior Reading

Learning Methodology

Additional Practice

8th and 9th Objective will be achieved after this session and all objective will be covered after the lecture.

Session 41 Doubt Clearing Session Implemented

Objective For the Unit 1,2

Prior Reading

Learning Methodology

Additional Practice

Session 42 Doubt Clearing Session Implemented

Objective For the Unit 3,4

Prior Reading

Learning Methodology

Additional Practice

Session 43 Doubt Clearing Session Implemented

Objective For the Unit 5

Prior Reading

Learning Methodology

Additional Practice

Surprise Tests

Two sessions have been earmarked for surprise tests, the scores of which will go towards the overall internal marking.

Students are advised to prepare on a day-to-day basis, as no notice will be given for these tests.

Strategy Analysis

In the semester, four-group presentations will be happened.

Assignments

The assignment submission dates will be 14th, 19th, 22nd, 24th, and 26th Nov 09 Students would come to know about the

two assignments in advance.

Delayed submissions will not be accepted and students failing to submit assignment in time will not qualify to get allocated

marks in the internals assessment.

WISH YOU ALL THE BEST