MA0041 - MERCHANT BANKING AND FINANCIAL SERVICES

Dear students get fully solved assignments

Send your semester & Specialization name to our mail id :

“ help.mbaassignments@gmail.com ”

or

Call us at : 08263069601

ASSIGNMENT

DRIVE	SUMMER 2015
PROGRAM	MBADS (SEM 4/SEM 6)MBAFLEX/ MBA (SEM 4) PGDBMN (SEM 2)
SUBJECT CODE & NAME	MA0041MERCHANT BANKING AND FINANCIAL SERVICES
BK ID	B1812
CREDITS	4
MARKS	60

Note: Answer all questions. Kindly note that answers for 10 marks questions should be approximately of 400 words. Each question is followed by evaluation scheme.

Q. 1. “Every merchant banker in India has to comply with the General Obligations and Responsibilities” as mandated in the SEBI Act 1992. Enumerate the extant guidelines.

Answer:The Securities and Exchange Board of India Act, 1992 (the SEBI Act) is an Act of the Parliament of India enacted for regulation and development of securities market in India. It was amended in the years 1995, 1999 and 2002 to meet the requirements of changing needs of the securities market.

POWERS AND FUNCTIONS OF THE BOARD

(1) Subject to the provisions of this Act, it shall be the duty of the Board to protect the interests of  investors in securities and to promote the development of, and to regulate the securities market, by such measures as it thinks fit.

Q. 2. How will you differentiate between ADRs and GDRs ? Identify the specific role players involved in making the global issue successful.

Answer:ADR stands for American Depositary Receipt and GDR stands for Global Depositary Receipt. ADRs are generally listed on American stock exchanges and GDRs are listed on European stock exchanges. It is only through ADRs and GDRs the shares of a foreign company, which is listed in its own country, can be traded in US and European countries respectively. The Indian equivalent of the Depositary Receipts is IDR (Indian Depositary Receipt). If a foreign company wants to list in Indian stock exchanges like NSE or BSE, it has to issue IDRs. The value of an IDR can be multiples or sub-multiples of the value of the share in its original country. The IDR will be in rupees converted from the equivalent currency of the country,

Q. 3. You have been appointed as “Manager, Non-fund based services” in a premier merchant bank. Can you perceive the kind of portfolios you may have to deal with ?

Answer:Stock investors constantly hear the wisdom of diversification. The concept is to simply not put all of your eggs in one basket, which in turn helps mitigate risk, and generally leads to better performance or return on investment. Diversifying your hard-earned dollars does make sense, but there are different ways of diversifying, and there are different portfolio types. We look at the following portfolio types and suggest how to get started building them: aggressive, defensive, income, speculative and hybrid. It is important to understand that building a portfolio will require research and some effort. Having said that, let's have a peek across our five portfolios to gain a better understanding of each and get you started.

The Aggressive Portfolio: An aggressive portfolio or b

Q. 4. “The benefits of bancassurance is extended not only to the banking and insurance companies but also to their customers”. Elaborate the statement referring to the extant regulations of bancassurance in India.

Answer:There was a time in the past when insurance policies were meant for a small part of public who were financially strong. Today the scenario has completely changed wherein insurance policies reach every person in almost every corner of our nation. This change in the financial horizon was ushered in with the birth of bancassurance in India. Banks which were meant for deposits, loans and transactions are allowed to provide insurance

Q. 5. As a financial consultant advise your client regarding the differences between mergers and acquisitions. Cite also the acts, regulations and guidelines related to mergers, acquisitions and takeovers.

Answer:A merger occurs when two separate entities combine forces to create a new, joint organization. An acquisition refers to the takeover of one entity by another. A new company does not emerge from an acquisition; rather, the smaller company is often consumed and ceases to exist, and its assets become part of the larger company. Acquisitions – sometimes called takeovers – generally carry a more negative connotation than mergers. For this reason, many acquiring companies refer to an acquisition as a merger

Q. 6. “A credit rating agency only facilitates the investors to decide and prioritize based on the ranks assigned to various debt instruments and the corporates floating those instruments”. Elucidate the statement.

Answer:Credit ratings are opinions about credit risk published by a rating agency. They express opinions about the ability and willingness of an issuer, such as a corporation, state or city government, to meet its financial obligations in accordance with the terms of those obligations. Credit ratings are also opinions about the credit quality of an issue, such as a bond or other debt obligation, and the relative likelihood that it may

Dear students get fully solved assignments

Send your semester & Specialization name to our mail id :

“ help.mbaassignments@gmail.com ”

or

Call us at : 08263069601