Course Outline

Dr. Gaur Hari Singhania Institute of Management and Research, Kanpur Merchant Banking and Financial Ser ice !"#$F% &rimester "th ' (GDM ' Batch )#*)+*" !F&% (HALF CREDIT)
Faculty: Amit Trivedi; Email: amit.trivedi.iit@gmail.com; Text Book: Merchant Banking and Financial Services !"##$ Author: %r. S &urusamy 'u(lisher: Tata Mc&ra) *ill Education 'vt +imited, -e) %elhi ........................................................................................ ..... ,. -ourse ./0ecti e The students attending the course should (e a(le to #. /no) a(out merchant (anking services and 0inancial services !. 1nderstand the underlying 2rinci2les and mechanism that drive the industry 3. A(le to connect MB4FS activities )ith (usiness entity 5. Become a)are a(out the state o0 0inancial services in 6ndia B. &eaching (edagog1 There )ill (e !7 class room lectures to cover the re8uired conce2ts. There are assignments, graded 8ui99es, and end: trimester examination. ;lass attendance and 2artici2ation in class discussion is very im2ortant 0or understanding o0 this course. The class 2artici2ants are ex2ected to 2re2are notes, such material )ill (e hel20ul in scoring good marks in 8ui99es<exams. -. Detailed Session (lan 2nit * # ! ) 3 5 B C 9 @ 7 A #" Session 3o. &opic 4 -ontents Introduction to Merchant Banking Merchant Banking and 6ts need 1nderstanding (usiness need 0or merchant (anking Raising -apital for 3e7 and 85isting Businesses+ (ri ate Funding Seed 0unding, Angle 6nvestment >aising ?enture ca2ital 'rivate E8uity and >ole ;redit Syndication Service Raising -apital for Business+ (u/lic Funding >egulatory Frame)ork: SEB6 ?arious 6nstruments 0or raising ca2ital 'u(lic 6ssues: 'rocess and %ocuments 'u(lic 6ssues: 'rocess and %ocuments ;ha2ter #, 'age # to ## -hapter 3o. of prescri/ed te5t /ook 6 (age 3os. ,cti it1 Details

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Assignment #= due

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Allotment o0 'resentation To2ics Su(mit Assignment #

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Course Outline
## #! #3 #5 " : #B #C #@ $ #7 #A !" !# !! !3 !5 !B ; !C !@ !7 'ricing o0 E8uity and %e(t instruments Management o0 2u(lic issue Management o0 2u(lic issue Stock Exchange: >oles and com2arison ,dding -redi/ilit1 to Business+ -redit Rating ;once2t o0 ;redit >ating: 3rd 2arty 'rocess o0 ;redit rating MaGor ;redit rating agencies Financial Ser ices in operating a /usiness +easing +easing Bill Financing Bill Financing Bill Financing Factoring: Mechanism and 2rinci2les Factoring and o00 (alance:sheet 0inancing, 6n 6ndia *ire 'urchase: Mechanism, 'ro0it 2re2osition and risk &aking Business to 3e5t Stage+ ,c<uisitions and Mergers M4A: advisory services M4A: 6n 6ndia >evisiting the conce2ts ;ha2ter !#, 'age !A@:3## ;ha2ter !!, 'age 3!!:3!C Su(mit Assignment 3 ;ha2ter !", 'age !7@:!A5 ;ha2ter !B, 'age 3C#:3@7 Assignment 3F due Announced Dui9 ! ;ha2ter B, 'age B3:B@ ;ha2ter C<@, 'age BA:73 ;ha2ter #!<#3, 'age #B@: #7B Announced Dui9 # Assignment !E due

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Su(mit Assignment !

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=,ssignment * !*# marks%> There )ould (e 3 2arts to this assignment: a. Hou are re8uired to 2resent a summary o0 a ne) venture that you have 2lanned. Hou are re8uired to )rite a short )rite u2 covering the 0ollo)ing areas 2lanning 0or 3 years$. #. 'roduct or service to (e o00ered !. Target market<segments and key marketing a22roach and ex2enses, se2arately mention the customer ac8uisition cost 3. Sourcing o0 resources and ex2ected costs 5. ;a2ital ex2enses 2lan and o2erational ex2enses 2lans )ith num(ers B. ;ash 0lo) 0rom (usiness activity The )rite:u2 should (e cris2 and not exceed 3 sides o0 A5 in 0ont si9e ## or #! o0 Times -e) >oman scri2t. (. 'resent a 3 year 0orecast 0or your (usiness in a (alance sheet, income statement and cash 0lo) statement c. Hou have to 2re2are ! minute video 2resenting your idea to a venture ca2italist. This is called elevator 2itch. ? ,ssignment ) !*# marks% Hou must have read a(out the controversy (et)een Sahara grou2 com2anies and SEB6 in the media. Hou are re8uired to research the controversy re0erring to 2u(lically availa(le material. a. Hou have to su(mit a )rite:u2 on the 0ollo)ing:

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Course Outline
#. Facts details$ o0 0und raising (y Sahara grou2 !. SEB6Is vie) on alleged violations: mention the guidelines<rules<la)s those might have (een com2romised 3. Hour o2inion on having regulations on 0und raising: )hy are regulations im2ortantJ The )rite:u2 should (e cris2 and not exceed ! sides o0 A5 in 0ont si9e ## or #! o0 Times -e) >oman scri2t. @ ,ssignment 9 !*# marks% Hou must have read that 6'K activity is much higher in the develo2ed countries such as 1S com2ared to develo2ing countries like 6ndia. Taking 1S and 6ndia as re2resentative countries, you have to su(mit a re2ort containing the 0ollo)ing 2arts: #. ;om2are the 6'K activity on the 0ollo)ing 2arameters and comment: a. -um(er o0 6'Ks 2er (illion dollar o0 &%' (. 6'K volume 2er (illion dollar &%' c. %aily trading volume at to2 ! exchanges as 2ercentage o0 &%' 0or (oth countries d. Hour o2inion on the di00erences !. Based on your o(servation in 2art # and other)ise, suggest the changes needed in 6ndian la)s and rules to (etter the situation. The )rite:u2 should (e cris2 and not exceed ! sides o0 A5 in 0ont si9e ## or #! o0 Times -e) >oman scri2t. D. 8 aluation Details Final evaluation )ill include end term exam o0 5B marks. 6nternal Evaluation shall (e done out o0 C" marks. 6t is (ased on the studentIs 2er0ormance in Assignment, Dui9:cum: ;lass Test, 'resentation, ;lassroom 'artici2ation and Attendance. The marks assigned 0or each activity are as 0ollo)s: Attendance Assignment 3 assignment = #" marks each$ ! Dui99es (oth announced; !=#" marks$ &otal 8. Recommended Ae/sites> #. !. 3. 5. This Liki2edia link is not authoritative in claims (ut 2resents a good reada(le story a(out the history o0 merchant (anking: htt2:<<en.)iki2edia.org<)iki<MerchantM(ank &iven here is the link to SEB6 guidelines on merchant (anking in 6ndia. The regulations )ere issued in #AA! and su(se8uently modi0ied. htt2:<<))).se(i.gov.in<acts<Merchant(ankers.2d0 Ethics is a (urning issue, here is a link on disclosure: htt2:<<))).se(i.gov.in<commre2ort<6ntegrated%isclosures.2d0 A government o0 6ndia )e(site on 0inancial services: htt2:<<0inancialservices.gov.in< . #" marks . 3" marks . !" marks ;# marks

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