Indian Financial System 2e

Home / Catalog / Indian Financial System 2e

Publication Date Thu Jan 01 00:00:00 UTC 2009 Available in all formats

Publisher: Vijay Nicole Imprints Private Limited

ISBN: 9789393665683

PAPERBACK

EBOOK (EPUB)

EBOOK (PDF)

ISBN: 9780070153363 Price: INR 995.00

Description

Table of contents

Biographical note

This book presents a conceptual framework on major categories of the Financial System including Financial Services, Financial Markets and Stock Exchange. Designed as an essential textbook for a course on Indian Financial System, this provides up-to-date information and covers topics such as merchant Banking, Micro-Finance, Factoring, Leasing, Venture Capital and Insurance Services.

Cover Page
Halftitle Page
Title Page
Copyright Page
Table of Contents
Preface
1. Financial System-An Overview
- Financial System
- Features
- Constituents
- Financial Institutions
- Financial Services
- Financial Markets
- Financial Instruments
  - Summary
  - Key Terms and Concepts
  - Review Questions
2. Indian Financial System
- Framework
- Department of Banking Supervision (DBS)
- Supervisory Role
- Department of Non-banking Supervision (DNBS)
- Supervisory Process
- Board for Financial Supervision (BFS)
- Advisory Council to BFS
- Sub Committee (Audit) to BFS
- Supervisory Jurisdiction
- Other Measures
- Transparency and Disclosure
- Internal Controls and Housekeeping in Banks
- Effective Banking Supervision—Core Principles
  - Summary
  - Key Terms and Concepts
  - Review Questions
3. Global Financial System
- Genesis
- Essential Considerations
  - Summary
  - Key Terms and Concepts
  - Review Questions
4. Prospectus
- Contents
- Prospectus for the Public Offer
- Regular Prospectus
- Abridged Prospectus
- Prospectus for Rights Issue
- Disclosures in Prospectus
- Disclosures in Abridged Prospectus and Letter of Offer
- Deemed Prospectus
- Statement in Lieu of Prospectus
- Misstatements in Prospectus
- Types of Prospectus
  - Summary
  - Key Terms and Concepts
  - Review Questions
  - Further Readings
5. Financial Services~An Overview
- Genesis
- Financial Services—Concept
- Financial Services—Objectives/Functions
- Financial Services—Characteristics
- Financial Services Market—Concept
- Financial Services Market—Constituents
- Growth of Financial Services in India
- Financial Services Sector—Problems
- Regulatory Framework
  - Summary
  - Key Terms and Concepts
  - Review Questions
  - Further Readings
6. Credit Cards
- Genesis
- Origin and History
- Features of Modern Credit Card
- Facilities and Services
- Classification of Credit Cards
- Innovative Cards
- Credit Card Cycle
- Bank Card Associations
- Credit Card Structure
- Validity and Renewal
- Credit Cards and E-commerce
- Credit Card Frauds
- Credit Information Bureau (CIB)
- Future Outlook
- Benefits of Credit Cards
- Drawbacks of Credit Cards
- The Indian Scenario
  - Summary
  - Key Terms and Concepts
  - Review Questions
  - Further Readings
7. Debit Cards
- Genesis
- Concept
- Mechanism
- Promotion and Progress
- Dangers of Debit Cards
- Liability for Fraud
- Consumer Protection
- Precautions
- The Indian Scenario
  - Summary
  - Key Terms and Concepts
  - Review Questions
  - Further Readings
8. Credit Rating
- Genesis
- Impetus
- Origin
- Definition of Credit Rating
- Features
- Advantages
- The Credit Rating System—Growth Factors
- Major Issues
- Global Credit Rating Agencies
- Domestic Credit Rating Agencies
- Credit Rating—Regulatory Framework
- Credit Rating Symbols
- Rating Framework—Major Factors
- Equity Grading
- Equity Grading Process by ICRA
  - Summary
  - Key Terms and Concepts
  - Review Questions
  - Further Readings
9. Hire Purchase Finance
- Definition
- Rights of Hirer
- Rate of Interest
- Lease Financing vs. Hire Purchase Financing
- Accounting for Hire Purchase
- Methods of Interest Calculation
- Method of Reporting
- Lease vs. Hire Purchase Evaluation
  - Summary
  - Key Terms and Concepts
  - Review Questions
  - Further Readings
10. Insurance Services
- Definition
- Basic Principles of Insurance
- Reinsurance
- Life Insurance
- General Insurance
- Types
- Fire Insurance
- Marine Insurance
- Other Insurances
- Liability Insurance
- Concept of Insurance Services
- Profile of Insurance Service Providers
- General Insurers
- Life Insurers
- Life Insurance Corporation of India (LIC)
- HDFC Standard Life Insurance Company
- Group Products
- Max New York Life Insurance Company
- ICICI Prudential Life Insurance Company
- Tata AIG
- SBI Life Insurance Company
- ING Vysya Life Insurance
- Allianz Bajaj Life Insurance Company
- Royal Sundaram
- Regulatory Framework
- The Insurance Act
- Insurance Regulatory and Development Authority (IRDA)
- Insurance Advisory Committee
- Power to Make Regulations
- Major Amendments to Insurance Act
- The First Schedule
- Insurance Agents, Intermediaries and Surveyors
  - Summary
  - Key Terms and Concepts
  - Review Questions
  - Further Readings
11. Factoring and Forfaiting
- Genesis
- Definition
- Mechanism
- Characteristics
- Factoring and Off-balance Sheet Financing
- Types of Factoring
- Legal Aspects of Factoring
- Advantages of Factoring
- Disadvantages of Factoring
- Factoring—Players
- Functions of a Factor
- Factoring Cost
- Line of Credit—Methods
- RBI Guidelines for Factoring
- Factoring—Indian Scenario
- Major Factoring Firms
- SBI Factors and Commercial Services
- Operational Profile of Indian Factoring
- Operational Problems in Indian Factoring
- Factoring—A Cost-benefit Analysis
- Methods of Evaluation
- Steps in Evaluation
- Alternative Steps
- Forfeiting
- Forfaiting—Indian Scenario
  - Summary
  - Key Terms and Concepts
  - Review Questions
  - Further Readings
  - Annexure
12. Leasing—An Overview
- Definition
- Characteristics of Lease
- Types of Lease
- Financial Lease vs. Operating Lease
- Test for Financial Lease
- Myths about Leasing
- Participants
- The Leasing Process
- Services of Lessor
- Advantages of Leasing
- Limitations of Lease Financing
- Tax Aspects of Leasing
- Implications for Lessor— Depreciation Tax Shield
- Implications for Lessee
- Tax Planning Aspects
- Financial Implications
- Implications under Sales Tax
- Funding Aspects of Leasing
- Maximum Permissible Bank Finance
- Types of Finance
  - Summary
  - Key Terms and Concepts
  - Review Questions
  - Further Readings
13. Lease Evaluation
- Definition of Lease
- Loan Repayment Schedule
- Lease Evaluation—Advantage to Lessor
- Lease Evaluation—Advantage to Lessee
- Evaluating Independent Lease Option as Advantage to Lessee
  - Summary
  - Key Terms and Concepts
  - Review Questions
  - Practical Questions
  - Further Readings
14. Merchant Banking
- Genesis
- Definition
- Functions
- Merchant Bankers' Code of Conduct
- Regulatory Framework
- Offer by Unlisted Companies—Guidelines
- Terms of Issue
  - Summary
  - Key Terms and Concepts
  - Review Questions
  - Further Readings
15. Mutual Funds
- Genesis
- Definition
- Products/Schemes
- Mutual Funds in India
- Managing Mutual Funds in India
- SEBI's requirements of AMC
- Functions of AMC
- Working Mechanism of AMC
- Portfolio Management Process in Mutual Funds
- Operational Efficiency of Mutual Funds
- Evaluating Mutual Funds
- Mutual Fund Holders' Account
- Causes for Poor Performance of Mutual Funds
- Unit Trust of India
- Regulatory Structure of Mutual Funds
- RBI Guidelines
- UTI Guidelines
- SEBI (Mutual Funds) Regulations, 1996
- SEBI Schedules
- Fifth Schedule—Code of Conduct
- Seventh Schedule—Restrictions on Investments
- Eighth Schedule—Investment Valuation Norms
- New Regulations, 1999
- Association of Mutual Funds Industry (AMFI)
  - Summary
  - Key Terms and Concepts
  - Review Questions
  - Further Readings
16. Public Issue Management
- Concept
- Functions
- Categories of Securities Issue
- Issue Manager
- Role of Issue Manager
- Activities Involved in Public Issue Management
- Marketing of Issue
- Public Issue Proposal—Factors
- Pricing of Issues
- Law Relating to Issue Management
  - Summary
  - Key Terms and Concepts
  - Review Questions
  - Further Readings
17. Securitization
- Genesis
- Definition
- Meaning of Security
- Pass Through Certificates
- Features of Securitization
- Need for Securitization
- Special Purpose Vehicle (SPV)
- Asset Securitization—Mechanism
- Purposes
- Asset Characteristics
- Applications of Securitization
- Securitization—Benefits
- Economic Functions of Securitization
- Global Scenario
- Indian Scenario
- Limitations
- Securitization and Financial Disintermediation
- Change in the Function of Intermediation
- Capital Markets and Securitization
- Securitization and Structured Finance
- Securitization as a Risk Management Tool
- Securitization and Credit Derivatives
  - Summary
  - Key Terms and Concepts
  - Review Questions
  - Further Readings
18. Book-Building
- Concept
- Characteristics
- The Process
- Allocation Procedure
- Case 1—Initial Public Offer (IPO) Issue
- Case II—Additional Issue by Listed Company
- Case III—Offer by Unlisted Company
- Reverse Book-building
  - Summary
  - Key Terms and Concepts
  - Review Questions
  - Further Reading
19. Venture Capital in India
- Venture Capital—An Overview
- Meaning
- Definition
- Rationale
- Features
- Stages of Venture Capital Financing
- Venture Capital in India
- Critical Factors
- Objectives/Benefits of Venture Capital Funds
- Venture Capital Funds in India—A Profile
- Organization Structure
- Registration of Venture Capital Fund (VCF)
- Application for Registration
- Grant of Certificate of Registration
  - Summary
  - Key Terms and Concepts
  - Review Questions
  - Further Readings
20. Infrastructure Financing Services
- Genesis
- Definition
- Sectors
- Financing Options
- Financing Instruments
- Infrastructure Financing—Issues in India
- RBI Guidelines
- Recent Developments
  - Summary
  - Key Terms and Concepts
  - Review Questions
  - Further Readings
21. Housing Finance Services
- Genesis
- Housing
- Housing Finance
- Models of Housing Projects
- Housing Finance in India—Major Issues
- Housing Finance in India—Growth Factors
- Housing Finance Assistance—Factors
- Housing Finance Institutions in India
- Advisory Services
  - Summary
  - Key Terms and Concepts
  - Review Questions
  - Further Readings
22. Micro Financial Services
- Micro Finance—Meaning
- Micro Finance—Definition
- Micro Finance Institution
- Micro Financial Services
- Scope of Micro Finance
- Features of Micro Finance
- Demand for Micro Finance
- Micro Finance Program
- Micro Credit Experiment—Global Scene
- Micro Finance and Risk Management
- Poverty Reduction
- Micro Financial Service Providers
- Approaches of Micro Financing
- Task Force on Micro Finance
- Micro Finance Programmes
  - Summary
  - Key Terms and Concepts
  - Review Questions
  - Further Readings
23. Financial Markets—An Overview
- Meaning
- Definition
- Location
- Role
- Functions
- Constituents
- Financial Instruments
- Capital Market Instruments
- Indian Money and Capital Markets
- Global Financial Markets
  - Summary
  - Key Terms and Concepts
  - Review Questions
  - Further Readings
24. Call Money Market
- Meaning
- Features
- Benefits
- Indian Call Money Market—A Profile
- Nature of Dealings
- Participants
- Mode of Operation
- Location
- Call Money Rates
  - Summary
  - Key Terms and Concepts
  - Review Questions
  - Further Readings
25. Commercial Paper Market
- Meaning
- Features
- Satellite Dealers (SDs)
  - Summary
  - Key Terms and Concepts
  - Review Questions
  - Further Reading
26. Commercial Bill Market
- Meaning
- Importance
- Developed Bill Market
- Shortcomings of Indian Bill Market
- Growth of Commercial Bill Market in India
- Bill Market Scheme, 1952
- The Study Group, 1970
- Bill Market Scheme, 1970
- IDBI Bill Rediscounting Scheme
- General Reasons for Failure of Bill Market Scheme
- Blues of Bills Discounting
- Revitalizing Bill Market
- Derivative Usance Bills
- RBI's Directives
  - Summary
  - Key Terms and Concepts
  - Review Questions
  - Further Readings
27. Certificate of Deposit (CD) Market
- Meaning of CD Market
- Features
- Time Deposit vs. Certificate of Deposit
- Profile
- The Launch
- Yield
- Role of DFHI
- Role of Banks
  - Summary
  - Key Terms and Concepts
  - Review Questions
  - Further Readings
28. Treasury Bills Market
- Meaning
- Treasury Bills (TBs)
- General Features
- Features of Indian TBs
- Benefits
  - Summary
  - Key Terms and Concepts
  - Review Questions
  - Further Readings
29. Government or Gilt-edged Securities Market
- Genesis
- Government Securities—Meaning
- Government Securities Market—Meaning
- Government Securities—Features
- Ready Forward Contracts (Repos)
- Repo Accounting
- Government Bonds
- Dealers in Government Bonds
- Importance of Gilt-edged Market
- Gilt-edged Market—Criticisms
- General Terms and Conditions Applicable to Government Securities
- Government Securities Market and Monetary Policy
- Gilt-edged Market—Reform Measures
- Guidelines for Banks
- Retail Trading of Government Securities on the Stock Exchanges
  - Summary
  - Key Terms and Concepts
  - Review Questions
  - Further Readings
30. Capital Market Instruments
- Genesis
- Meaning
- Types
- Preference Shares
- Equity Shares
- Non-Voting Equity Shares
- Convertible Cumulative Preference Shares (CCPS)
- Company Fixed Deposits
- Warrants
- Debentures and Bonds
- Global Debt Instruments
  - Summary
  - Key Terms and Concepts
  - Review Questions
  - Further Readings
31. New Issues Market (NIM)—Conceptual Framework
- Meaning
- NIM and Secondary Markets—An Interface
- Services of NIM
- NIM vs. Secondary Market
- Methods of Marketing Securities
- SEBI Guidelines for Listed and Unlisted Companies
- Intermediaries in NIM
- Merchant Bankers/Lead Managers
- Underwriters
- Bankers to an Issue
- Brokers to an Issue
- Registrars to an Issue and Share Transfer Agents
- Debenture Trustees
  - Summary
  - Key Terms and Concepts
  - Review Questions
  - Further Readings
32. Foreign Exchange Market
- Meaning
- Characteristics
- Constituents
- Participants
- Transactions
- Rates and Quotations
- Foreign Exchange Risk
- Risk Management Tools
- Swaps
- Mechanics of Currency Trading
- Management of Exchange Rates
- Indian Foreign Exchange Market
- Currency Options
- Exchange Rate Management
  - Summary
  - Key Terms and Concepts
  - Review Questions
  - Further Readings
33. Derivatives Market
- Genesis
- Meaning of Derivatives
- Growth of Derivatives Market—Factors
- Handicaps of Derivatives Market
- Functions of Derivatives Market
- Categories of Derivatives
- Futures and Options—Participants
- General Functions of Dealers
- Benefits of Derivatives
- Risks in Derivatives Market
- Capital Standards for Derivatives
- Regulating Derivatives Market
- Advent of Derivatives Market in India
  - Summary
  - Key Terms and Concepts
  - Review Questions
  - Further Readings
34. Financial Institutions-An Overview
- Meaning
- Special Characteristics
- Broad Categories
- Money Market institutions
- Capital Market Institutions
- Indian Financial Institutions—A Profile
- Co-operative Banking Institutions—An Overview
- Indian Scenario
- Meaning and Definition of Co-operative Banks
- Features
- Co-operative Banks vs. Commercial Banks
- Structure
  - Summary
  - Key Terms and ConceptsReview Questions
  - Further Readings
35. Non-Banking Financial Institutions (NBFIs)
- Registration
- Principal Business of NBFCs
- Structure of NBFCs
- Supervision of NBFCs
- RBI Measures for NBFCs
- Task Force on NBFCs
- Role of BFS
- Other Measures
- RBI Directions on Acceptance of Public Deposits
- Special Provisions
  - Summary
  - Key Terms and Concepts
  - Review Questions
  - Further Reading
36. Stock Exchange-Regulatory Framework
- Genesis
- The Factors
- The Regulatory Framework
- Under the SEBI Act
- Under the BSCC Act
- Under the Defence of India Rule
- Under the Capital Issues Control Act, 1947
- Under the Securities Contracts (Regulation) Act, 1956
- Under the Securities Contracts (Regulation) Rules, 1957
- Under the Companies Act, 1956
- Committees on Regulatory Framework
  - Summary
  - Key Terms and Concepts
  - Review Questions
37. Indian Stock Exchanges—A Profile
- The Bombay Stock Exchange (BSE)
- BOLT (BSE-On-Line-Trading)
- For New Companies
- For Companies Listed on Other Stock Exchanges
- For Companies Delisted already and Seeking Relisting of this Exchange
- Safety of Market
- Opportunities for Foreign Investors
- Shortages and Objections
- Derivatives Trading
- Calcutta Stock Exchange
- The National Stock Exchange ofIndia Limited (NSE)
  - Summary
  - Key Terms and Concepts
  - Review Questions
38. Listing
- Listing—Meaning
- Security Listing—Meaning
- Security—Meaning
- Stock Exchange—Meaning
- Recognized Stock Exchange
- Listing—Characteristics
- Listing—Legal Provisions
- Listing—Steps
- Listing—Legal Significance
- Refusal of Listing
- SEBI Powers
- Listing and Corporate Governance
- Listing—Particulars to be Furnished
- Listing Agreement—Meaning
- Listing Agreement—Features
- Stock Exchange Powers
- Listing—Benefits
- Consequences of Non-listing
- New Entry Norms for Unlisted Companies
- Listing—Suspension / Withdrawal
  - Summary
  - Key Terms and Concepts
  - Review Questions
  - Further Readings
39. Internet Stock Trading
- Genesis
- Meaning
- Features
- Current Scenario
- Internet Trading—Alternatives
- Internet Trading—Some Issues
- Regulating Internet Stock Trading
- IPOs on the Internet—Indian Experience
- e-lPO Prospectus
- E-commerce Act and Internet Stock Trading
  - Summary
  - Key Terms and Concepts
  - Review Questions
40. Stock Index Futures
- Genesis
- Derivatives Contract
- Futures Contract
- Stock Index
- Stock Index Futures (SIF)
- Features of SIF
- Trading in SIF
- Squaring off
- Pricing SIF
- Benefits of SIF
- Hedging using SIF
- Short Hedge
- Long Hedge
- Speculation using SIF
  - Summary
  - Key Terms and Concepts
  - Review Questions
  - Further Readings
Bibliography
Index

Dr. Gurusamy is currently Professor and Head, Department of Commerce, University of Madras, Chennai.

Description

Table of contents

Cover Page
Halftitle Page
Title Page
Copyright Page
Table of Contents
Preface
1. Financial System-An Overview
- Financial System
- Features
- Constituents
- Financial Institutions
- Financial Services
- Financial Markets
- Financial Instruments
  - Summary
  - Key Terms and Concepts
  - Review Questions
2. Indian Financial System
- Framework
- Department of Banking Supervision (DBS)
- Supervisory Role
- Department of Non-banking Supervision (DNBS)
- Supervisory Process
- Board for Financial Supervision (BFS)
- Advisory Council to BFS
- Sub Committee (Audit) to BFS
- Supervisory Jurisdiction
- Other Measures
- Transparency and Disclosure
- Internal Controls and Housekeeping in Banks
- Effective Banking Supervision—Core Principles
  - Summary
  - Key Terms and Concepts
  - Review Questions
3. Global Financial System
- Genesis
- Essential Considerations
  - Summary
  - Key Terms and Concepts
  - Review Questions
4. Prospectus
- Contents
- Prospectus for the Public Offer
- Regular Prospectus
- Abridged Prospectus
- Prospectus for Rights Issue
- Disclosures in Prospectus
- Disclosures in Abridged Prospectus and Letter of Offer
- Deemed Prospectus
- Statement in Lieu of Prospectus
- Misstatements in Prospectus
- Types of Prospectus
  - Summary
  - Key Terms and Concepts
  - Review Questions
  - Further Readings
5. Financial Services~An Overview
- Genesis
- Financial Services—Concept
- Financial Services—Objectives/Functions
- Financial Services—Characteristics
- Financial Services Market—Concept
- Financial Services Market—Constituents
- Growth of Financial Services in India
- Financial Services Sector—Problems
- Regulatory Framework
  - Summary
  - Key Terms and Concepts
  - Review Questions
  - Further Readings
6. Credit Cards
- Genesis
- Origin and History
- Features of Modern Credit Card
- Facilities and Services
- Classification of Credit Cards
- Innovative Cards
- Credit Card Cycle
- Bank Card Associations
- Credit Card Structure
- Validity and Renewal
- Credit Cards and E-commerce
- Credit Card Frauds
- Credit Information Bureau (CIB)
- Future Outlook
- Benefits of Credit Cards
- Drawbacks of Credit Cards
- The Indian Scenario
  - Summary
  - Key Terms and Concepts
  - Review Questions
  - Further Readings
7. Debit Cards
- Genesis
- Concept
- Mechanism
- Promotion and Progress
- Dangers of Debit Cards
- Liability for Fraud
- Consumer Protection
- Precautions
- The Indian Scenario
  - Summary
  - Key Terms and Concepts
  - Review Questions
  - Further Readings
8. Credit Rating
- Genesis
- Impetus
- Origin
- Definition of Credit Rating
- Features
- Advantages
- The Credit Rating System—Growth Factors
- Major Issues
- Global Credit Rating Agencies
- Domestic Credit Rating Agencies
- Credit Rating—Regulatory Framework
- Credit Rating Symbols
- Rating Framework—Major Factors
- Equity Grading
- Equity Grading Process by ICRA
  - Summary
  - Key Terms and Concepts
  - Review Questions
  - Further Readings
9. Hire Purchase Finance
- Definition
- Rights of Hirer
- Rate of Interest
- Lease Financing vs. Hire Purchase Financing
- Accounting for Hire Purchase
- Methods of Interest Calculation
- Method of Reporting
- Lease vs. Hire Purchase Evaluation
  - Summary
  - Key Terms and Concepts
  - Review Questions
  - Further Readings
10. Insurance Services
- Definition
- Basic Principles of Insurance
- Reinsurance
- Life Insurance
- General Insurance
- Types
- Fire Insurance
- Marine Insurance
- Other Insurances
- Liability Insurance
- Concept of Insurance Services
- Profile of Insurance Service Providers
- General Insurers
- Life Insurers
- Life Insurance Corporation of India (LIC)
- HDFC Standard Life Insurance Company
- Group Products
- Max New York Life Insurance Company
- ICICI Prudential Life Insurance Company
- Tata AIG
- SBI Life Insurance Company
- ING Vysya Life Insurance
- Allianz Bajaj Life Insurance Company
- Royal Sundaram
- Regulatory Framework
- The Insurance Act
- Insurance Regulatory and Development Authority (IRDA)
- Insurance Advisory Committee
- Power to Make Regulations
- Major Amendments to Insurance Act
- The First Schedule
- Insurance Agents, Intermediaries and Surveyors
  - Summary
  - Key Terms and Concepts
  - Review Questions
  - Further Readings
11. Factoring and Forfaiting
- Genesis
- Definition
- Mechanism
- Characteristics
- Factoring and Off-balance Sheet Financing
- Types of Factoring
- Legal Aspects of Factoring
- Advantages of Factoring
- Disadvantages of Factoring
- Factoring—Players
- Functions of a Factor
- Factoring Cost
- Line of Credit—Methods
- RBI Guidelines for Factoring
- Factoring—Indian Scenario
- Major Factoring Firms
- SBI Factors and Commercial Services
- Operational Profile of Indian Factoring
- Operational Problems in Indian Factoring
- Factoring—A Cost-benefit Analysis
- Methods of Evaluation
- Steps in Evaluation
- Alternative Steps
- Forfeiting
- Forfaiting—Indian Scenario
  - Summary
  - Key Terms and Concepts
  - Review Questions
  - Further Readings
  - Annexure
12. Leasing—An Overview
- Definition
- Characteristics of Lease
- Types of Lease
- Financial Lease vs. Operating Lease
- Test for Financial Lease
- Myths about Leasing
- Participants
- The Leasing Process
- Services of Lessor
- Advantages of Leasing
- Limitations of Lease Financing
- Tax Aspects of Leasing
- Implications for Lessor— Depreciation Tax Shield
- Implications for Lessee
- Tax Planning Aspects
- Financial Implications
- Implications under Sales Tax
- Funding Aspects of Leasing
- Maximum Permissible Bank Finance
- Types of Finance
  - Summary
  - Key Terms and Concepts
  - Review Questions
  - Further Readings
13. Lease Evaluation
- Definition of Lease
- Loan Repayment Schedule
- Lease Evaluation—Advantage to Lessor
- Lease Evaluation—Advantage to Lessee
- Evaluating Independent Lease Option as Advantage to Lessee
  - Summary
  - Key Terms and Concepts
  - Review Questions
  - Practical Questions
  - Further Readings
14. Merchant Banking
- Genesis
- Definition
- Functions
- Merchant Bankers' Code of Conduct
- Regulatory Framework
- Offer by Unlisted Companies—Guidelines
- Terms of Issue
  - Summary
  - Key Terms and Concepts
  - Review Questions
  - Further Readings
15. Mutual Funds
- Genesis
- Definition
- Products/Schemes
- Mutual Funds in India
- Managing Mutual Funds in India
- SEBI's requirements of AMC
- Functions of AMC
- Working Mechanism of AMC
- Portfolio Management Process in Mutual Funds
- Operational Efficiency of Mutual Funds
- Evaluating Mutual Funds
- Mutual Fund Holders' Account
- Causes for Poor Performance of Mutual Funds
- Unit Trust of India
- Regulatory Structure of Mutual Funds
- RBI Guidelines
- UTI Guidelines
- SEBI (Mutual Funds) Regulations, 1996
- SEBI Schedules
- Fifth Schedule—Code of Conduct
- Seventh Schedule—Restrictions on Investments
- Eighth Schedule—Investment Valuation Norms
- New Regulations, 1999
- Association of Mutual Funds Industry (AMFI)
  - Summary
  - Key Terms and Concepts
  - Review Questions
  - Further Readings
16. Public Issue Management
- Concept
- Functions
- Categories of Securities Issue
- Issue Manager
- Role of Issue Manager
- Activities Involved in Public Issue Management
- Marketing of Issue
- Public Issue Proposal—Factors
- Pricing of Issues
- Law Relating to Issue Management
  - Summary
  - Key Terms and Concepts
  - Review Questions
  - Further Readings
17. Securitization
- Genesis
- Definition
- Meaning of Security
- Pass Through Certificates
- Features of Securitization
- Need for Securitization
- Special Purpose Vehicle (SPV)
- Asset Securitization—Mechanism
- Purposes
- Asset Characteristics
- Applications of Securitization
- Securitization—Benefits
- Economic Functions of Securitization
- Global Scenario
- Indian Scenario
- Limitations
- Securitization and Financial Disintermediation
- Change in the Function of Intermediation
- Capital Markets and Securitization
- Securitization and Structured Finance
- Securitization as a Risk Management Tool
- Securitization and Credit Derivatives
  - Summary
  - Key Terms and Concepts
  - Review Questions
  - Further Readings
18. Book-Building
- Concept
- Characteristics
- The Process
- Allocation Procedure
- Case 1—Initial Public Offer (IPO) Issue
- Case II—Additional Issue by Listed Company
- Case III—Offer by Unlisted Company
- Reverse Book-building
  - Summary
  - Key Terms and Concepts
  - Review Questions
  - Further Reading
19. Venture Capital in India
- Venture Capital—An Overview
- Meaning
- Definition
- Rationale
- Features
- Stages of Venture Capital Financing
- Venture Capital in India
- Critical Factors
- Objectives/Benefits of Venture Capital Funds
- Venture Capital Funds in India—A Profile
- Organization Structure
- Registration of Venture Capital Fund (VCF)
- Application for Registration
- Grant of Certificate of Registration
  - Summary
  - Key Terms and Concepts
  - Review Questions
  - Further Readings
20. Infrastructure Financing Services
- Genesis
- Definition
- Sectors
- Financing Options
- Financing Instruments
- Infrastructure Financing—Issues in India
- RBI Guidelines
- Recent Developments
  - Summary
  - Key Terms and Concepts
  - Review Questions
  - Further Readings
21. Housing Finance Services
- Genesis
- Housing
- Housing Finance
- Models of Housing Projects
- Housing Finance in India—Major Issues
- Housing Finance in India—Growth Factors
- Housing Finance Assistance—Factors
- Housing Finance Institutions in India
- Advisory Services
  - Summary
  - Key Terms and Concepts
  - Review Questions
  - Further Readings
22. Micro Financial Services
- Micro Finance—Meaning
- Micro Finance—Definition
- Micro Finance Institution
- Micro Financial Services
- Scope of Micro Finance
- Features of Micro Finance
- Demand for Micro Finance
- Micro Finance Program
- Micro Credit Experiment—Global Scene
- Micro Finance and Risk Management
- Poverty Reduction
- Micro Financial Service Providers
- Approaches of Micro Financing
- Task Force on Micro Finance
- Micro Finance Programmes
  - Summary
  - Key Terms and Concepts
  - Review Questions
  - Further Readings
23. Financial Markets—An Overview
- Meaning
- Definition
- Location
- Role
- Functions
- Constituents
- Financial Instruments
- Capital Market Instruments
- Indian Money and Capital Markets
- Global Financial Markets
  - Summary
  - Key Terms and Concepts
  - Review Questions
  - Further Readings
24. Call Money Market
- Meaning
- Features
- Benefits
- Indian Call Money Market—A Profile
- Nature of Dealings
- Participants
- Mode of Operation
- Location
- Call Money Rates
  - Summary
  - Key Terms and Concepts
  - Review Questions
  - Further Readings
25. Commercial Paper Market
- Meaning
- Features
- Satellite Dealers (SDs)
  - Summary
  - Key Terms and Concepts
  - Review Questions
  - Further Reading
26. Commercial Bill Market
- Meaning
- Importance
- Developed Bill Market
- Shortcomings of Indian Bill Market
- Growth of Commercial Bill Market in India
- Bill Market Scheme, 1952
- The Study Group, 1970
- Bill Market Scheme, 1970
- IDBI Bill Rediscounting Scheme
- General Reasons for Failure of Bill Market Scheme
- Blues of Bills Discounting
- Revitalizing Bill Market
- Derivative Usance Bills
- RBI's Directives
  - Summary
  - Key Terms and Concepts
  - Review Questions
  - Further Readings
27. Certificate of Deposit (CD) Market
- Meaning of CD Market
- Features
- Time Deposit vs. Certificate of Deposit
- Profile
- The Launch
- Yield
- Role of DFHI
- Role of Banks
  - Summary
  - Key Terms and Concepts
  - Review Questions
  - Further Readings
28. Treasury Bills Market
- Meaning
- Treasury Bills (TBs)
- General Features
- Features of Indian TBs
- Benefits
  - Summary
  - Key Terms and Concepts
  - Review Questions
  - Further Readings
29. Government or Gilt-edged Securities Market
- Genesis
- Government Securities—Meaning
- Government Securities Market—Meaning
- Government Securities—Features
- Ready Forward Contracts (Repos)
- Repo Accounting
- Government Bonds
- Dealers in Government Bonds
- Importance of Gilt-edged Market
- Gilt-edged Market—Criticisms
- General Terms and Conditions Applicable to Government Securities
- Government Securities Market and Monetary Policy
- Gilt-edged Market—Reform Measures
- Guidelines for Banks
- Retail Trading of Government Securities on the Stock Exchanges
  - Summary
  - Key Terms and Concepts
  - Review Questions
  - Further Readings
30. Capital Market Instruments
- Genesis
- Meaning
- Types
- Preference Shares
- Equity Shares
- Non-Voting Equity Shares
- Convertible Cumulative Preference Shares (CCPS)
- Company Fixed Deposits
- Warrants
- Debentures and Bonds
- Global Debt Instruments
  - Summary
  - Key Terms and Concepts
  - Review Questions
  - Further Readings
31. New Issues Market (NIM)—Conceptual Framework
- Meaning
- NIM and Secondary Markets—An Interface
- Services of NIM
- NIM vs. Secondary Market
- Methods of Marketing Securities
- SEBI Guidelines for Listed and Unlisted Companies
- Intermediaries in NIM
- Merchant Bankers/Lead Managers
- Underwriters
- Bankers to an Issue
- Brokers to an Issue
- Registrars to an Issue and Share Transfer Agents
- Debenture Trustees
  - Summary
  - Key Terms and Concepts
  - Review Questions
  - Further Readings
32. Foreign Exchange Market
- Meaning
- Characteristics
- Constituents
- Participants
- Transactions
- Rates and Quotations
- Foreign Exchange Risk
- Risk Management Tools
- Swaps
- Mechanics of Currency Trading
- Management of Exchange Rates
- Indian Foreign Exchange Market
- Currency Options
- Exchange Rate Management
  - Summary
  - Key Terms and Concepts
  - Review Questions
  - Further Readings
33. Derivatives Market
- Genesis
- Meaning of Derivatives
- Growth of Derivatives Market—Factors
- Handicaps of Derivatives Market
- Functions of Derivatives Market
- Categories of Derivatives
- Futures and Options—Participants
- General Functions of Dealers
- Benefits of Derivatives
- Risks in Derivatives Market
- Capital Standards for Derivatives
- Regulating Derivatives Market
- Advent of Derivatives Market in India
  - Summary
  - Key Terms and Concepts
  - Review Questions
  - Further Readings
34. Financial Institutions-An Overview
- Meaning
- Special Characteristics
- Broad Categories
- Money Market institutions
- Capital Market Institutions
- Indian Financial Institutions—A Profile
- Co-operative Banking Institutions—An Overview
- Indian Scenario
- Meaning and Definition of Co-operative Banks
- Features
- Co-operative Banks vs. Commercial Banks
- Structure
  - Summary
  - Key Terms and ConceptsReview Questions
  - Further Readings
35. Non-Banking Financial Institutions (NBFIs)
- Registration
- Principal Business of NBFCs
- Structure of NBFCs
- Supervision of NBFCs
- RBI Measures for NBFCs
- Task Force on NBFCs
- Role of BFS
- Other Measures
- RBI Directions on Acceptance of Public Deposits
- Special Provisions
  - Summary
  - Key Terms and Concepts
  - Review Questions
  - Further Reading
36. Stock Exchange-Regulatory Framework
- Genesis
- The Factors
- The Regulatory Framework
- Under the SEBI Act
- Under the BSCC Act
- Under the Defence of India Rule
- Under the Capital Issues Control Act, 1947
- Under the Securities Contracts (Regulation) Act, 1956
- Under the Securities Contracts (Regulation) Rules, 1957
- Under the Companies Act, 1956
- Committees on Regulatory Framework
  - Summary
  - Key Terms and Concepts
  - Review Questions
37. Indian Stock Exchanges—A Profile
- The Bombay Stock Exchange (BSE)
- BOLT (BSE-On-Line-Trading)
- For New Companies
- For Companies Listed on Other Stock Exchanges
- For Companies Delisted already and Seeking Relisting of this Exchange
- Safety of Market
- Opportunities for Foreign Investors
- Shortages and Objections
- Derivatives Trading
- Calcutta Stock Exchange
- The National Stock Exchange ofIndia Limited (NSE)
  - Summary
  - Key Terms and Concepts
  - Review Questions
38. Listing
- Listing—Meaning
- Security Listing—Meaning
- Security—Meaning
- Stock Exchange—Meaning
- Recognized Stock Exchange
- Listing—Characteristics
- Listing—Legal Provisions
- Listing—Steps
- Listing—Legal Significance
- Refusal of Listing
- SEBI Powers
- Listing and Corporate Governance
- Listing—Particulars to be Furnished
- Listing Agreement—Meaning
- Listing Agreement—Features
- Stock Exchange Powers
- Listing—Benefits
- Consequences of Non-listing
- New Entry Norms for Unlisted Companies
- Listing—Suspension / Withdrawal
  - Summary
  - Key Terms and Concepts
  - Review Questions
  - Further Readings
39. Internet Stock Trading
- Genesis
- Meaning
- Features
- Current Scenario
- Internet Trading—Alternatives
- Internet Trading—Some Issues
- Regulating Internet Stock Trading
- IPOs on the Internet—Indian Experience
- e-lPO Prospectus
- E-commerce Act and Internet Stock Trading
  - Summary
  - Key Terms and Concepts
  - Review Questions
40. Stock Index Futures
- Genesis
- Derivatives Contract
- Futures Contract
- Stock Index
- Stock Index Futures (SIF)
- Features of SIF
- Trading in SIF
- Squaring off
- Pricing SIF
- Benefits of SIF
- Hedging using SIF
- Short Hedge
- Long Hedge
- Speculation using SIF
  - Summary
  - Key Terms and Concepts
  - Review Questions
  - Further Readings
Bibliography
Index

Biographical note

Dr. Gurusamy is currently Professor and Head, Department of Commerce, University of Madras, Chennai.

Rate this Book

Tell us what you think.