FINANCIAL SERVICES ASSIGNMENT
Attempt any 2 questions from each unit
(Assignment Submission Date: 28/02/2025)
TOTAL MARKS: 20*
UNIT-I: Financial Services
Q.1 Define financial services and explain their importance in the Indian economy. Discuss the
evolution of financial services in India with relevant examples.
Q.2 Analyze the role of the regulatory framework in financial services. How do regulations impact
banking, insurance, and investment services in India?
Q.3 Compare and contrast the functions of merchant banking and other intermediaries in the
financial services sector. Highlight their advantages and disadvantages.
Q.4 Explain the constituents of financial services and their interdependence. Provide examples to
illustrate the role of these services in economic development.
UNIT-II: Mutual Funds and Venture Capital
Q.1 What are mutual funds? Discuss their types, functions, and advantages. Explain the emergence
of mutual funds in India with real-life examples.
Q.2 Define venture capital. Analyze its growth, significance, and functions in the Indian financial
system. Provide examples of successful venture capital funding.
Q.3 Discuss the role and working of Asset Management Companies (AMCs) in mutual fund
operations. What are the advantages and challenges faced by AMCs in India?
Q.4 Compare the operational mechanisms of mutual funds and venture capital funds. Highlight their
benefits and drawbacks for investors and companies.
UNIT-III: Leasing and Factoring
Q.1 Define leasing and explain its essential features. Discuss the types of lease agreements with
examples and evaluate their advantages and disadvantages from the lessor's perspective.
Q.2 What is factoring? Explain its concept, mechanism, and performance in India. How does
factoring differ from forfaiting and bill discounting?
Q.3 Analyze the role of leasing in asset financing. How does it compare to traditional bank
financing? Provide examples of its application in India.
Q.4 Discuss the advantages and limitations of forfaiting as a financial service. How does forfaiting
contribute to international trade finance?
UNIT-IV: Merchant Banking and Underwriting
Q.1 Define merchant banking and explain its origin and growth in India. Discuss the services
rendered by merchant bankers with examples.
Q.2 Analyze the role of merchant bankers in issue management services. Discuss their contribution
to corporate restructuring and project financing.
Q.3 What is underwriting? Discuss its recent trends in India and its importance in the financial
market. Highlight the advantages and disadvantages of underwriting.
Q.4 Explain the code of conduct for merchant bankers. How does it ensure ethical practices and
protect investor interests?
UNIT-V: Credit Rating and Custodial Services
Q.1 Define credit rating. Explain its scope and importance in financial markets. Discuss the credit
rating process with reference to Indian agencies.
Q.2 Analyze the concept of debt securitization. Discuss its importance, process, and pricing
mechanisms with the role of Special Purpose Vehicles (SPVs).
Q.3 What are custodial services? Discuss their significance in the Indian financial system and how
they facilitate smooth financial transactions.
Q.4 Compare the symbols adopted by Indian credit rating agencies. How do they differ from global
standards? Provide examples and evaluate their impact on investor confidence.
* The marks will be determined by the overall quality of the assignment, the relevance
and credibility of the resource materials (such as books and websites), the clarity and
organization of the answers, the inclusion of pertinent examples, key points, and a
well-structured conclusion. Additionally, the use of diagrams and proper referencing
will also be considered.
