Role of financial_services

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ASSIGNMENT

DRIVE

WINTER 2014

PROGRAM

MBADS (SEM 4/SEM 6)MBAFLEX/ MBA (SEM 4)

PGDBMN (SEM 2)

SUBJECT CODE & NAME

MA0041 &MERCHANT BANKING AND FINANCIAL SERVICES

BK ID

B1812

CREDITS

MARKS

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. Explain the maintenance of books of accounts, records etc. under the general obligations and

responsibilities of merchant bankers.

Answer:Every asset management company for each scheme shall keep and maintain proper books

of accounts, records and documents, for each scheme so as to explain its transactions and to

disclose at any point of time the financial position of each scheme and in particular give a true and

fair view of the state of affairs of the fund and intimate to the Board the place where such books of

accounts, records and documents are maintained. The asset management company shall follow the

accounting policies and standards as specified in Ninth Schedule so as to provide appropriate details

of the scheme wise disposition of the assets of the fund at the relevant accounting date and the

performance during that period together with information regarding distribution or accumulation of

income accruing to the unitholder in a fair and true manner.

Maintenance of books of accounts, records, etc.

Every Portfolio Manager shall keep and

Q.2. The methodology of issuing securities by giving a price range is known as book building

method. A book building is a price discovery mechanism. Based on this write the methods and

guidelines of book building. Explain the offer in a prospectus on book building 75 percent. Write

the key role of the under writer and benefits for the company.

Answer: Book building is a process of generating, capturing, and recording investor demand for

shares during an initial public offering (IPO), or other securities during their issuance process, in

order to support efficient price discovery. Usually, the issuer appoints a major investment bank to

act as a major securities underwriter or bookrunner.

The "book" is the off-market collation of investor demand by the bookrunner and is confidential to

the bookrunner, issuer, and underwriter. Where shares are acquired, or transferred via a bookbuild,

the transfer occurs off-market, and the transfer is not guaranteed by an exchange’s clearing house.

Where an underwriter has been appointed, the underwriter bears the risk of non-payment by an

acquirer or non-delivery by the seller.

Book building is a common practice in developed countries and has recently been making inroads

into emerging markets as well. Bids may be submitted on-line, but the book is maintained off-market

by the bookrunner and bids are confidential to the bookrunner. Unlike a public issue, the book

building route will see minimum number of applications and large order size per application. The

price at which new shares are issued is

Q.3. Bancassurance means selling insurance product through banks. Give a brief introduction of

bancassurance and write the benefits of bancassurance to the banks and insurance companies.

Answer:Bancassurance arrangements are very common in Europe, where the practice has a long

history. In the United States, bancassurance was prohibited until the repeal of the Glass Steagall Act

in 1999, and has not yet caught on as a practice for most forms of insurance. Bancassurance remains

prohibited in a number of other countries; however, the global trend has been toward the

liberalization of banking laws.

The bank insurance model (BIM), also sometimes known as bancassurance, is the partnership or

relationship between a bank and an insurance company whereby the insurance company uses the

bank sales channel in order to sell insurance

Q.4.Explain the procedure for mergers under the merchant banking.

Answer:A merchant bank is a financial institution that provides capital to companies in the form of

share ownership instead of loans. A merchant bank also provides advisory on corporate matters to

the firms they lend to. In the United Kingdom, the term "merchant bank" refers to an investment

bank.

The term Merchant Banking has its origin in the trading methods of countries in thelate eighteenth

and early nineteenth century when trade-taking place was financed by bill of exchange drawn by

merchanting houses. At that time the merchants weremerely financing their own activities. As

international trade grew and other lesser” known names wanted to import goods from abroad, the

established merchants “lenttheir names‘ to the newcomers by agreeing to accept bills of exchange

on their behalf.The acceptance houses

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Dear students get fully solved assignments Send your semester & Specialization name to our mail id : “ help.mbaassignments@gmail.com ” or Call us at : 08263069601 (Prefer mailing. Call in emergency ) ASSIGNMENT DRIVE WINTER 2014 PROGRAM MBADS (SEM 4/SEM 6)MBAFLEX/ MBA (SEM 4) PGDBMN (SEM 2) SUBJECT CODE & NAME MA0041 &MERCHANT 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. Explain the maintenance of books of accounts, records etc. under the general obligations and responsibilities of merchant bankers. Answer:Every asset management company for each scheme shall keep and maintain proper books of accounts, records and documents, for each scheme so as to explain its transactions and to disclose at ...
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