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An Overview

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In general all types of activities which are of financial nature could be brought under the term

financial services.

Financial services refer to services provided bythe finance industry.

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y Gramm-Leach-Bliley Act of the late 1990s, which enabled

different types of companies operating in the U.S. financial

services industry at that time to merge.

y There are two approaches for merger:-

y In this scenario, each company still looks independent, and

has its own customers, etc.

y In the other style, a bank would simply create its own

brokerage division or insurance division and attempt to

sell those products to its own existing customers, with

incentives for combining all things with one company

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1. Low profitability.

2. Keen competition.

3. Economic liberalization.

4. Improved communication technology.

5. Customer Service/ Delight.

6.G

lobal impact.7. Investor awareness.

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1. To meet emergencies.

2. Start a new Business.3. To invest in stocks.

4. Guide towards investment in managed futures.

5.G

uide to wealth creation.

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1. CAPITAL MARKET INTERMEDIARIES

2. MONEY MARKET INTERMEDIARIES.

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y Persons / Institutions which help in the capital market

y Examples-

1. Brokers

2. Jobbers

3. Sub Brokers

4.Portfolio Consultant

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y Persons/ Institutions which help in money market

y Example-

1. Underwriting of shares

2. Private Placement

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It is categorized into traditional and modern activities.

The traditional activities are fund based and non fund basedactivities.

Fund based activities are :1. Underwriting activities

2. Dealing in Secondary Markets

3. Participating in money market intruents

4. Involving in equipment leasing , HP, venture capitaland seed capital

5. Dealing in Foreign Exchange markets.

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1. Managing the capital issues.

2. Making arrangements for private placements.

3. Making arrangements of funds for project finance and

working capital requirements.

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1. Providing project advisory/consultancy.

2. Planning for merger and acquisition.

3. Guiding corporate in capital restructuring.4. Managing portfolio of large PSU.

5. Assisting in establishing the right debt equity mix.

6. Restructuring the sick companies.

7. Hedging of risk due to Foreign Exchange/Interest rates

variations.

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1. Merchant Banking.

2. Loan Syndication.

3. Leasing.4. Mutual funds.

5. Factoring.

6. Forfeiting.

7. Venture capital.8. Corporate advisory services.

9. Securitization.

10. Forwards, Futures, Swaps, Options.

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1. Conservatism to Dynamism.

2. Emergence of Primary Equity Market.

3. Concept of Credit Rating.

4. Process ofGlobalization.

5. Process of Liberalization.

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1. Lack of Qualified Personnel.

2. Lack ofInvestor Awareness.3. Lack of Transparency.

4. Lack of Specialization.

5. Lack of Recent Data.

6. Lack of Efficient Risk Management System.

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Ekta Poddar 0911234

Anirudh Jain 0911251

Nikita Parakh- 0911264