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FINANCIAL SERVICES

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Course Instructors:Prof. Jasbir Singh Matharu and Prof S Shanbhag

 JSM

!er!ie" of the#nancia$ ser!ices inIndia

Stoc% E&changes: Stoc%'ro%ing( )e*ositor+ser!ices( Custodia$ser!ices

Merchant 'an%ingActi!ities

N'FCs , Leasing

Factoring inc$uding Cost

'ene#t Ana$+sis

SS

-ea$th Manageent andPortfo$io ManageentSer!ices

Mutua$ Funds and /edgeFunds

Insurance

Venture Ca*ita$ Funds(Ange$s and Pri!ate E0uit+

Credit Rating Ser!ices

Asset ReconstructionCo*anies

Securiti1ation

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Evaluation

End ter e&aination 234

Indi!idua$ Assignents 534

6rou* Pro7ects 534

6rou* Presentations 534

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REA)IN6S

Khan, M.Y., Financial Services, Tata McGrawHill

Shah, Thomas and Gorham, India’s FinancialMarkets, Elsevier 

6oe1( C.( Financia$ Mar%ets( Institutions and

Financia$ Ser!ices( P/I( 5338 6urusa+( S.( Financia$ Ser!ices( 9ata Mc6ra" /i$$

Patha%( '.V.( 9he Indian Financia$ S+ste( Pearson

Shanugha( R.( Financia$ Ser!ices( -i$e+ India

Siddaiah( 9.( Financia$ Ser!ices( Pearson

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Indian

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FINANCIAL SS9EM

Financia$ Mar%ets  Ca*ita$( Mone+( )eri!ati!es( Fore&

Financia$ Institutions:  )FIs( Coercia$ 'an%s( N'FCs( Stoc% E&changes(

Mutua$ Funds( Insurance co*anies etc

Financia$ Instruents:  E0uit+( )ebt( Preference( 6o!ernent Securities( etc

Financia$ Ser!ices Regu$ators

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FINANCIAL SERVICES

Inc$udes a$$ acti!ities connected "ith thetransforation of sa!ings intoin!estent.

Concerned "ith the design and de$i!er+of ad!ice and #nancia$ *roducts to

indi!idua$s and businesses

Refer to ser!ices rendered b+ ban%s(insurance co*anies( and other #nancia$interediaries in the #nancia$ ar%ets

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Share of ser!ices in 6)P;a**ro&<

Ser!ices = >?4 ;not inc$uding construction<

Financing( insurance( rea$ estate( and business ser!ices:@?.?4

Share of 'an%ing and Insurance: >.84

C$assi#cation b+ Centra$ Statistica$ rganisation

Source: Econoic Sur!e+ 53@5@B

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Strong gro"th in #nancia$ ser!ices reasons

Rising *ersona$ incoes

6ro"th of a ore consuerorientedcu$ture

6ro"th of creditoriented cu$ture

Financia$ sector refors  *ening u* of insurance sector

  6ro"th of ca*ita$ ar%et  Regu$ator+ changes

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Recent 9rends

Financia$ Con!ergence

Financia$ Engineering

Financia$ Inc$usion

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 9PES

FN) 'ASE) SERVICES

FEE 'ASE)

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Fund based

E0ui*ent $easing D Lease #nancing

Consuer credit

Factoring

Venture ca*ita$ #nancing

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Fee based

Merchant ban%ing

Stoc% bro%ing

)e*ositor+ ser!ices

Credit rating

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Regu$ation

Securities and E&change 'oard of India ;SE'I<   Mutua$ Funds( Venture ca*ita$( Credit Rating( Stoc%

bro%ing( Merchant 'an%ing( )e*ositories

Reser!e 'an% of India ;R'I<

  'an%s Currenc+ ar%ets 'ond ar%ets N'FCs;factoring( $easing( consuer #nance<

Insurance Regu$ator+ and )e!e$o*ent Agenc+;IR)A< 

Insurance co*anies Nationa$ /ousing 'an%

  /ousing #nance co*anies

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Regu$ation

Pension Fund Regu$ator+ and)e!e$o*ent Agenc+ ;PFR)A<  Pension Funds

For"ard Mar%ets Coission ;FMC<  Coodit+ E&changes and 'ro%ers

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Regu$ation

6o!ernent  Ministr+ of Cor*orate Aairs( Ministr+ of Finance

Nationa$ 'an% for Agricu$ture and Rura$)e!e$o*ent ;NA'AR)<  Regiona$ Rura$ 'an%s

Sa$$ Industries )e!e$o*ent 'an% of India;SI)'I<  State Finance Cor*orations

Se$f regu$ation  -ea$th anageent co*anies( Stoc% E&changes(

Mutua$ funds ;AMFI

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Financia$ Stabi$it+ and )e!e$o*entCounci$ ;FS)C<  nder the Ministr+ of Finance

  Coordination aong regu$ators  Regu$ation of #nancia$ cong$oerates

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Issues in Regu$ation

Co*$e&it+

Entit+ based regu$ation

ConGict of interest R'I

Mu$ti*$e regu$ators "ith o!er$a**ing  Cases of o!er$a**ing

SE'I !s IR)A

Sing$e regu$atorH

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FSLRC

 9he Financia$ Sector Legis$ati!e ReforsCoittee ;FSLRC< set u* to re"rite and re!ie"#nancia$ sector $a"s that ha!e becoe outdated

 9he Coittee has recoended !arious*ro*osa$s to *rotect consuers against isse$$ing and fraud.

It a$so suggested *ro*osa$s for de!e$o*ent ofthe #nancia$ sector in India.

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FSLRC Pro*osa$s

Indian Financia$ Code 'i$$ 53@B a sing$efrae"or% for regu$ator+ go!ernanceacross a$$ agencies.

Create a ni#ed Financia$ Authorit+ ;FA

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FSLRC Pro*osa$s

A sing$e Financia$ )ata ManageentCentreK: A$$ #nancia$ #rs "i$$ subitregu$ar inforation #$ings e$ectronica$$+ to

this sing$e faci$it+ A uni#ed Financia$ Sector A**e$$ate 9ribuna$ ;FSA9< that "ou$d hear a$$ a**ea$s

A sing$e uni#ed Financia$ Redress Agenc+;FRA< "hich "ou$d ser!e an+ aggrie!edconsuer( across a$$ sectors.