DCM2202: Financial Services Manipal University Jaipur (MUJ)

BACHELOR OF COMMERCE
SEMESTER 4

DCM2202
FINANCIAL SERVICES

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DCM2202: Financial Services Manipal University Jaipur (MUJ)

Unit 1
Financial Services
Table of Contents

SL Topic Fig No / Table / SAQ / Page No

No Graph Activity
1 Learning Objectives - 3
2 Concept and Constituents - 1 4-5
3 Objectives and characteristics - 2 6-7
4 Growth of financial services in India - 3 ,I 8 - 10
5 Problems - 4 11 - 13
6 Regulatory Framework - 5 14 - 20
7 Summary - - 21
8 Glossary - - 22
9 Case Study - - 23
10 Terminal Questions - - 24
11 Answers - - 24 - 26
12 Suggested Books and E-References - - 27

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1. LEARNING OBJECTIVES
After studying this chapter, you will be able to:

❖ Understand the concept of financial services

❖ List out the objectives and characteristics of financial services
❖ Elaborate on the growth of financial services in India.
❖ Understand the regulatory framework of all the financial services firms in India.

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2. CONCEPT AND CONSTITUENTS

An essential part of the financial system are financial services. The standard of financial
services offered by a wide range of suppliers determines how well the financial system
operates. They often meet the demands of individuals, institutions, and companies through
a wide network of components including financial institutions, financial markets, and
financial instruments.

Financial services refer to the services offered by financial companies. Financial companies
can include both asset management companies and liability management companies. Asset
management company comprises leasing companies, mutual funds, merchant bankers, and
issue/ portfolio managers. Liability management companies include bill discounting and
acceptance houses.

The market for the exchange of financial products and instruments, which includes a number
of players and each of them offers a particular sort of service, is referred to as the financial
services market.

Constituents:

The following 4 factors make up the financial markets:

1. Market participants: These companies compete in the market. They include banks,
financial institutions, mutual funds, merchant bankers, stockbrokers under writers, etc.
2. Instruments: Equity instruments, debt instruments, hybrid instruments, and exotic
instruments are some of the financial instruments.
3. Specialized institutions: These include depositories, credit rating agencies, acceptance
houses, discount houses, common factors, and venture capitalists, among others.
4. Regulating bodies: The Central Government's Department of Banking and Insurance,
the Reserve Bank of India, the Securities and Exchange Board of India, the Board of
Industrial and Financial Rehabilitation, etc. are among the regulating bodies.

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Self-Assessment Questions - 1

1. Which one of the following comes under Liability management companies?

a) Mutual funds
b) Merchant bankers
c) Bill discounting
d) Leasing companies
2. ______________refers to the market for the exchange of financial products and
instruments, which has a number of participants, each of whom provides a
different kind of service.

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2. OBJECTIVES AND CHARACTERISTICS

The financial services offered by the financial companies generally consists of the following
objectives:

1. Fund raising: The funds are generally demanded by corporate houses or individuals.
Financial services assist in obtaining the necessary funding from a variety of investors,
including companies, institutions, and people. A variety of financial products are
utilised to raise money.
2. Funds management: The financial markets offer a wide range of financial services that
aid in the efficient use of the funds raised. Financial services also assist in the decision
making of the financing mix. Effective management of funds can be exercised by making
a proper mix of the services available such as bill discounting, factoring of debtors,
credit rating, E-commerce, etc.
3. Specialized services: Specialized services provided by the financial service sector
include credit rating, venture capital financing, leasing, factoring, mutual funds, housing
finance, etc these services are provided by stock exchanges, specialized financial
institutions, banking, and insurance companies non-banking finance companies, etc.
4. Regulation: In India, the agencies that provide financial services are regulated by the
Securities Exchange Board of India (SEBI), Reserve Bank of India (RBI), and the IRDA
(Insurance Regulatory and Development Authority).
5. Economic growth: Financial services contribute to the extent of the process of
economic growth and development. It is possible through the mobilization of the
savings of people from various sections of society. It helps in channeling the savings
into productive investments. Savings and investment rates are high in many developed
nations with highly effective financial markets.

Characteristics:

1. Intangibility: The financial services are of an intangible character. Customers' trust and
a positive reputation will help the financial institutions offering these financial services
succeed in the market. The focus is on providing clients with high-quality, innovative
services in order to earn their credibility and trust.

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2. Customer orientation: Financial services can only be customer-oriented if financial

institutions thoroughly research and comprehend the needs of their clients. From this
research, creative financial services may emerge that take into account factors such as
costs, liquidity, and maturity for a variety of financial products.
3. Inseparability: The tasks of creating and providing services must be done at the same
time and cannot be separated. Only when there is a proper understanding between the
clients of financial services provider companies and themselves is this possible.
4. Perishability: Since financial services are supplied according to the requirements of the
customers they must be created and delivered immediately. They cannot be stored.
That providers of financial services must ensure that there is a match between demand
and supply.
5. Dynamism: According to the socio-economic conditions of the economy the financial
services must be constantly redefined and refined. In other words, financial services
must be dynamic. They should match the disposable income, the standard of living,
level of education, etc. The financial services must be proactive in nature and evolve
new services by visualizing the expectations of the market.

Self-Assessment Questions - 2

3. The functions of producing and rendering of financial services can be done

separately. [True/False].
4. Financial services must be _________ in nature to meet the expectations of the market.

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3. GROWTH OF FINANCIAL SERVICES IN INDIA

There are various stages in the growth of financial services in India.

Stage 1: Merchant banking era: The merchant banking era spans the years 1960 to 1980,
when financial services like leasing, insurance, and merchant banking started to expand.
Merchant bankers were in charge of the following duties:

a) locating projects, creating feasibility studies, and creating thorough project reports.
b) performing managerial, financial, and technological studies for their clients in the areas
of marketing and management.
c) aiding in the creation of a suitable capital structure.
d) serving as a conduit between financial institutions and the stock market.
e) Underwriting.
f) obtaining loans for operating capital.
g) providing legal counsel on mergers and acquisitions.

Stage 2: Investment companies' era:

A number of banks and investment institutions were being established during this time. They
consist of the Life Insurance Corporation of India (LIC)(1956), the General Insurance
Corporation, and the Unit Trust of India. When the insurance industry was nationalised in
1970, LIC expanded as a governmental monopoly. The general insurance business in the
public sector was delegated to an insurance corporation that had been organised as a holding
company with four subsidiaries. The leasing industry began to expand around the end of the
1970s. At first, the leasing businesses focused on financing equipment leases; but, as time
went on, they expanded into other leasing operations, including financing operating and wet
leasing.

Stage 3: Modern services era:

Over-the-counter services, share transfers, pledges of mutual fund shares, factoring,

discounting, venture capital, and credit rating are just a few of the financial services and
products that were introduced in the 1980s. In order to encourage savings habits among
people, the mutual fund industry introduced innovative schemes. Mutual fund offers

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attractive and stable returns on investors' money with their transparent asset and liability
management. One of the significant financial services that was developed in the Indian
financial sector and intended to increase investor trust and promote active involvement in
capital market activities was credit rating. This promoted ted a sound financial discipline in
the system. The introduction of venture capital funds was another important landmark in
the Indian financial service sector. Additionally, factoring gained popularity as a short-term
lending option, and the arrival of commercial banks into this market completely altered the
Indian financial system's makeup.

Stage 4: Depository era:

Depositories were set up to integrate the Indian financial service industry with the
international financial service industry through the dematerialization of shares and bonds.
The concept of paperless trading was introduced with the help of the depository system the
stock lending scheme approved by the central government in the year 1997-98 budget, the
idea of setting up a separate corporation to deal with the trading of ‘gilts’. In order to build a
strong financial service sector in India, the book-building was another step where both
investors and fund users have benefited from the online trading interface and
computerization of the Bombay Stock Exchange Delhi Stock Exchange, and the National
Stock Exchange acts as a medium for the development of a strong financial market in India.
SEBI regularly published guidelines relating to capital adequacy ratio for merchant bankers
and other stakeholders in the financial system in order to safeguard investors' interests and
prepare the path for regulation.

Stage 5: Legislative era:

To enable broad-based development in the financial services sector, a number of laws were
introduced. FEMA took the position of the FERA. To promote secure and organised trade and
transaction settlement, changes were made to the Indian Companies Act, Income Tax Act,
etc. To control the trading of securities over the Internet, a different law was passed.

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Stage 6: FIIs Era:

In this era, Foreign Institutional Investors were permitted to operate in the Indian capital
market. This step is aimed at enabling foreign investors to plunge into the Indian capital
market and contribute to growth and development. Financial services firms in India are
increasingly looking for ways and means by which they could mop up capital from
international financial markets such as London, Luxembourg, New York, etc. GDR is the usual
route through which these portfolio investments have flowed into India.

Activity I
Activity: Make a list of 10 financial institutions that renders services such as Merchant
banking, factoring, Leasing, Hire purchase etc. in India.

Self-Assessment Questions - 3

5. ____________ were set up to integrate the Indian financial service industry with the
international financial service industries through the dematerialization of shares
and bonds.
6. ______________ is an instrument adopted by foreign investors to invest in the Indian
capital market.

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4. PROBLEMS
The financial services sector of India is trying to make its presence felt in various spheres of
financial services. It is preparing itself to face competition especially from its global
counterparts. However, this sector faces many problems that can be listed as follows:

A. Lack of expertise:

The financial services programmes must be understood and implemented by experts.

Even though India has many institutions and professional organisations, there is still a
shortage of managers who have the necessary expertise to oversee businesses
providing financial services. The private sector cannot afford to match the offers made
by the international financial firms, while the state sector holds back on paying
competitive salaries.

B. Inadequate accommodation:

The financial capital of India is Mumbai. Finding a suitable place to accommodate a

financial services firm at a central location to effectively cater to the needs of a variety
of clients s is very difficult. Especially in Mumbai where the real estate prices are
raising.

C. Inadequate technology:

One of the main issues Indian financial services companies confront is a lack of
competent and tried-and-true technology to efficiently produce and distribute financial
products. Banks and institutions do not have the necessary networking infrastructure
to transmit different financial instruments.

D. Inadequate quality service:

Delivering high-quality services and products at the appropriate location, at the

appropriate cost, and at the appropriate time is essential for a financial services
company to survive. This is referred to as offering efficient financial services. Indian
financial services companies must raise the standard of their services if they are to meet

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the expectations of their customers. When judging the financial services companies on
their quality, the credit rating agencies must also use caution.

E. Captive organizations:

Most of the financial services institutions are set up as a subsidiary of a commercial

bank or another financial institution. When these subsidiary institutions are lending at
low-interest rates, it forces the parent forms also to lend at lower rates than the of
market rates. This leads to high cost for fund raising. It also deprives the parent forms
in making efficient use of their funds.

F. Restricted scope of operation:

The scope of operations relating to financial services currently restricted to certain

segments. For instance, the scope of venture capital operations in India is restricted to
providing finance for start-ups, high-tech projects and to converting R&D efforts into
commercial production. In the same way lease financing is also restricted to operating
and financial leases.

G. Limited innovation:

Financial sector product innovation has been rather modest. For instance, venture
capital funds might provide a variety of financial packages that are specifically tailored
to the needs of the entrepreneurs. In a similar vein, leasing companies should be
encouraged to offer leasing services for a variety of capital equipment in addition to
making sure that leasing companies are not only founded to trade in tax shelter at the
expense of the government.

H. Lack of sound institutional mechanism:

A strong institutional framework is required for a thriving financial services industry.

In order to encourage banks and other insurance companies to build fully functional
subsidiaries, a comprehensive range of financial services must be offered.

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Self-Assessment Questions - 4

7. There are still a lot of restrictions on the scope of operations for financial services
in India. [True/False].
8. For a healthy financial service sector, there is a need for an ..................

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5. REGULATORY FRAMEWORK

Need for regulation: The need for regulations arises for the following reasons:

a. Economic growth,
b. Promoting savings and investment
c. Efficient financial services and
d. Investor protection

Types of regulatory framework: The regulatory framework can be classified into the
following types:

1. Institutional regulations: these are also called structural regulations and these stem
from a host of regulatory institutions set up in a financial market by the government.
The object of these regulations is to promote healthy competition among the players.
Securities Exchange Board of India (SEBI) is the apex agency, and the Reserve Bank of
India is another structural entity that prescribes activities that commercial banks could
provide to the investors.
2. Prudential regulations: Regulations relating to the internal management of financial
institutions and other financial service organizations regarding capital adequacy,
liquidity and solvency. These regulations aim at preventing the entry of firms without
adequate resources. The minimum net worth requirement for various financial services
is fixed by SEBI.
3. Investor regulations: These are designed to protect the interest of small and individual
investors. The primary objective is to promote healthy trading and thereby instil
confidence in investors. In this connection SEBI comes out with periodic guidelines on
investor protection.
4. Legislative regulations: These regulations contain legislative measures brought by the
government from time to time for the all-round development of financial services
industry. Some of the important regulations include the Banking Regulation Act, 1949,
Securities Contract regulations Act etc.
5. Self-regulations: The self-imposed regulations could be a foreign exchange dealer can
have their own self-regulation besides being governed by legislative guidelines.

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Similarly, merchant Bankers Association can have its own self-regulation apart from
the Sebi regulation.

Regulatory framework: The regulatory framework ensures the soundness and safety of
financial institutions and helps maintain the integrity of transmission mechanisms as well as
protect the consumers of financial services. The framework of regulations currently
operating in India is elaborated below

1. Framework for banking and financial services

2. Framework for insurance services
3. Framework for investment services
4. Framework for merchant banking and other services
1. Framework for banking and financial services:

The banking and financial institutions in India are regulated by the central government
and the RBI. The RBI takes up the responsibility of regulating all institutions through
both RBI Act and Banking Regulations Act.

The regulations relating to banking institution are as follows:

a. New branch: providing sanction for establishing a new branch

b. Capital: describing minimum capital reserves and use of profits and reserves
distribution of dividends etc.
c. Inspection: conducting an inspection or investigation of working of the banks
d. Appointment: controlling the appointment of chairman and CEO of private banks and
nominating members to the board of directors.
e. Monetary policy: drawing and implementing appropriate monetary and credit policies
and determining the cash reserve ratio and statutory liquidity ratio.
f. Credit control: implementing various credit control measures such as qualitative and
quantitative.
g. Other services: regulating factoring, bill discounting and credit card services offered by
commercial banks

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Regulations relating to non-banking financial companies are as follows:

The NBFCs are regulated by RBI, through a host of measures including Banking laws Act
1963, Non-banking financial companies' directions 1977 and Residuary Non-banking
companies' directions 1987.

2. Framework for insurance services:

The Insurance Act 1938, which was administered by the Comptroller of insurance, was
meant to regulate the insurers before the nationalization of life and general insurance
and the setting up of LIC 1956 and GIC in 1973 respectively. The regulatory functions
came to be vested with LIC and GIC thereafter.

Insurance regulatory authority was constituted in 1996 and define powers over the
working of insurance companies were introduced:

a. Orderly growth: regulating promoting and ensuring orderly growth of insurance

business.
b. Exercise of powers: exercising all powers and performing functions of the Comptroller
of insurance under the Insurance Act 1938, LIC act 1956 and General Insurance
Business act 1972.
c. Protecting policyholders: In situations involving the policyholders' signature on the
nomination form, insurable interests, the resolution of insurance claims, the surrender
of the policy, etc.
d. Professionalization: fostering and governing professional associations related to the
insurance industry.
e. Information: information obtained through inspection, inquiry, and audit of insurers,
insurance intermediaries, and other organisations involved in the insurance industry.
f. Books maintenance: specifying the format and manner in which insurers and other
insurance intermediaries will record their books of accounts and produce their
statements of accounts
g. Investment: regulating insurance companies' financial investments and the upkeep of
their solvency margins.
h. Adjudication: deciding on disagreements between intermediaries and insurers.

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3. Framework for Investment services:

The investment services include fund-based activities such as mutual funds and
venture capital funds. Similarly, stock exchanges and stock broking institutions have a
close link with investment activities. The Securities Contracts Regulation Act 1956,
SEBI regulations, and RBI constitute the regulatory setup.

Regulations by SEBI:

a. Stock exchanges: regulating the business of stock exchanges and any other securities
markets.
b. Stockbrokers: registering and regulating the working of stockbroker's sub-brokers
share transfer agent, merchant brokers etc.
c. Investment schemes: programs that register and control the operation of mutual funds
and other collective investment programs.
d. investor protection: hitting fraudulent and unfair trade practices relating to securities
market.
e. information: soliciting data from those performing audits of stock exchanges,
intermediaries, and self-regulatory bodies in the securities markets, as well as
information from those conducting inspections and enquiries.
f. SCRA: executing those duties and using those authority granted by SCRA, 1952, as may
have been delegated by the Central Government.

Mutual funds: Sebi has broadly classified mutual funds into 3 as Unit Trust of India, Public
sector and private sector mutual funds and money market and offshore mutual funds. The
regulations include:

a. The UTI is regulated by the UTI Act, 1963.

b. The Reserve Bank of India, Government of India, and SEBI, through Where periodical
guidelines gone public sector banks’ mutual funds and private sector and foreign
mutual funds operating in India.

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Venture capital financing: Venture capital institutions participate in the equity of companies
that are not able to raise equity directly from the market. Venture capital was originally in
the form of special schemes of Development Finance Institutions (DFI). Regulatory features
are as follows:

a. Union government: Venture capital funds or venture capital companies are enabled to
invest new enterprises and are eligible for favourable treatment of capital gains and
dividends.
b. CCI: Initial regulatory guidelines from the controller of capital issues which are taken
over by SEBI from 1995.
c. SEBI: SEBI’s Venture Capital Funds Regulation 1996, Describing compulsory
registration of VCF.

Portfolio management services: the portfolio management services comprise of

administration of portfolio of securities or funds client. Under the SEBI regulations 1993 a
detailed guidelines have been issued to regulate this advisory service. According to these
regulations compulsory registration of portfolio managers before starting their service is
required.

Stockbroking: regulations pertaining to stockbroking services under Securities Contract Act

1956, And the bylaws of Stock Exchange are as follows:

a. Qualification: describing the norms of qualification for membership in recognised Stock

Exchange.
b. Registration: compulsory registration of members of the Stock Exchange and sub
brokers.
c. capital adequacy: net worth requisition and capital adequacy norms books and records
to be maintained and code of conduct to be adopted by members.
d. Inspection: inspecting books and records and investigating the investors and an other
brokers complaints against the stockbroker.

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4. Framework for Merchant Banking and Other Services:

The merchant bankers, Underwriters, Brokers, Market makers etc are regulated by the
following SEBI guidelines:

a. SEBI (Merchant Banker Regulation) 1992.

b. SEBI Rules for Underwriters
c. SEBI (Brokers and Sub-brokers) Regulation 1992
d. SEBI Rules for Registrars to an Issue and Share Transfer Agents, 1993.

The following are the regulations pertaining to merchant bankers and other intermediaries:

a. Registration with SEBI under relevant regulations before commencing business

b. Description of eligibility norms and registrations net worth and capital adequacy
norms wherever relevant and code of conduct
c. Carrying out inspection of books and records and conducting investigation on affairs
of the intermediaries and taking appropriate action against them whenever required.
d. Due compliance guidelines of SEBI and issuance of due diligence certificate.
e. Observance of guidelines under SEBI guidelines for Disclosure and Investor
Protection 1992.

Self-Assessment Questions - 5

9. The insurance companies in India are regulated by ______________

10. ____________institutions participate in the equity of companies that are not able to
raise equity directly from the market.

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Concept map:

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6. SUMMARY

• Financial services are the services provided by financial institutions. Asset

management firms and liability management firms are examples of financial services.
Leasing companies, mutual funds, merchant bankers, and issue or portfolio managers
are examples of asset management businesses. The bill discounting and acceptance
houses are a part of the liability management companies.
• Financial services are an essential part of the financial system. Through a network of
components including financial institutions, financial markets, and financial
instruments, they fulfil the requirements of individuals, institutions, and corporations.
• The financial services market is comprised of market intermediaries, instruments, and
regulatory bodies. growth of financial services markets in India may be classified into
the merchant banking era, the investment companies' era, the modern services era, the
depository era, the legislative era and the FIIs era.
• The financial services in India face many problems such as lack of availability of
adequate expertise, infrastructure accommodation technology etc.
• The organization development and the delivery of financial services in India is subject
to institutional regulations, prudential regulations, investors regulations, legislative
regulations and self-regulation.
• SEBI come out with regulations and guidelines pertaining to the working of different
market players, keeping in mind the need for investor protection and the development
of financial market.

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7. GLOSSARY
Financial markets: It is a market where the trading of securities takes place. It includes both
the stock market and bonds market.

Mutual funds: A mutual fund is a type of financial vehicle made up of a pool of money
collected from many investors to invest in securities like stocks, bonds etc.

Leasing: A lease is a contract in which one party agrees to rent a property owned by another
party.

Merchant banks: The term merchant bank refers to a financial institution that conducts
underwriting, loan services, financial advising, and fundraising services for large
corporations.

Factoring: A factor is a financial intermediary that purchases receivables from a company.

It agrees to pay the invoice, less a discount for commission and fees.

Bill discounting: Bill Discounting is an activity in which a company's unpaid invoices which
are due to be paid at a future date are sold to a financier.

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8. CASE STUDY
Aadhar Housing Finance Ltd., (AHFL) was established in 2011 and is regulated by India’s
National Housing bank. It enables homeownership for low- and lower-middle-income
households in India. The housing finance companies mainly target the high or medium-
income group of citizens whereas the low-income citizens are neglected. The government is,
therefore, seeking to increase housing finance penetration through favorable refinancing
and interest rate subsidies for lenders. But AHFL is currently facing certain problems such
as:

1. The low-income group of customers may not have ID cards or income statements
through which their identity and credibility must be checked.
2. Their loan repayments can be affected by irregular cash flows.
3. The unclear land titles can cause legal issues.

The AHFL is now planning to set up a committee to address these issues and lend loans for
self-construction houses of low-income individuals.

Questions:

Q1: What are the major steps that need to be taken by AHFL to achieve its objective?

Q2: Explain the regulatory framework that AHFL must follow for its smooth and efficient
functioning.

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9. TERMINAL QUESTIONS

A. Short Answer Questions

Q1: What are the 4 major constituents of financial markets?

Q2: Mention the reasons why a regulatory framework is required for financial services?

Q3: Write a short note on the legislative era of financial services in India.

B. Long Answer Questions

Q1: Explain the regulatory framework for insurance services in India.

Q2: Explain the growth stage of merchant bankers in India.

10. ANSWERS

A. Self-Assessment Questions

1. c)
2. The Financial services market
3. False
4. Pro active
5. Depositories
6. GDR
7. True
8. effective institutional mechanism.
9. The Insurance Regulatory Authority of India
10. Venture capital

B. Short Answer Questions

Q1: The 4 major constituents of financial markets are:

1. Market players: The market players include banks, financial institutions, mutual funds,
merchant bankers, stockbrokers under writers etc,

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2. Instruments: The financial instruments include equity instruments, debt instruments,

hybrid, and exotic instruments.
3. Specialized institutions: These include acceptance houses, discount houses common
factors, depositories, credit rating agencies, venture capitalists etc.
4. Regulatory bodies: The regulatory bodies include the Department of Banking and
Insurance of the Central Government, Reserve Bank of India, Securities and Exchange
Board of India, Board of Industrial and Financial reconstruction, etc.

Q2: The need for regulations arises for the following reasons:

a. Economic growth,
b. Promoting savings and investment
c. Efficient financial services and
d. Investor protection

Q3: Several legislations was introduced in order to allow broad-based development in the
financial service sector. The FERA was replaced by FEMA. amendments were made in the
Indian Companies Act Income Tax Act, etc to facilitate safe and orderly trading and
settlement of transactions a separate law was passed to regulate the Internet trading of
securities.

C. Long Answer Questions

Q1: The investment services include fund-based activities such as mutual funds and venture
capital funds. Similarly, stock exchanges and stop broking institutions have a close link with
investment activities. The Securities Contracts Regulation Act 1956, SEBI regulations, and
RBI constitute the regulatory setup.

Regulations by SEBI:

a. Stock exchanges: regulating the business of stock exchanges and any other securities
markets.
b. Stockbrokers: registering and regulating the working of stockbroker's sub-brokers
share transfer agent, merchant brokers etc.

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c. investment schemes registering and regulating the working of collective investment

schemes including mutual funds.
d. investor protection: hitting fraudulent and unfair trade practices relating to securities
market.
e. information calling for information from undertaking inspection conducting inquiries
in audits of stock exchanges intermediaries and self-regulatory organizations in the
securities markets.
f. SCRA: performing such functions and exercising such powers under SCRA, 1952 as
maybe delegated by the Central Government.

Q2: Merchant banking era:

The merchant banking era is in between the period of 1960 and 1980 financial services such
as merchant banking, insurance, leasing etc begin to grow during this period. The following
functions were carried out by merchant bankers:

a. identifying projects preparing feasibility reports and developing detailed project

reports.
b. conducting marketing, managerial financial and technical analysis on behalf of their
clients.
c. assisting in designing an appropriate capital structure.
d. acting as a bridge between capital market and fund seeking institutions.
e. Underwriting.
f. arranging working capital loans.
g. offering legal advice relating to mergers and acquisitions.

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11. SUGGESTED BOOKS AND E- REFERENCES

Books:

• Kothari Rajesh, Financial Services in India, SAGE Publishing, Latest Edition

• E. Gordon & K. Natrajan, Financial Markets and Services, JBA, 10th Edition, 2016
• M Y Khan, Financial Services, 5th Edition, Tata McGraw Hill, Latest Edition
• Pathak, The Indian Financial System, Pearson Education, Latest Edition

References:

• https://vskub.ac.in/wp-content/uploads/2020/04/FINANCIAL-SERVICES-6th-
Sem.pdf
• https://josephscollege.ac.in/lms/Uploads/pdf/material/FSS.pdf
• https://www.ibef.org/industry/financial-services-india
• https://financialservices.gov.in/

Unit 1 : Financial Services 27