College of Business Management

Regulation-2013
Semester-III
Merchant Banking and Financial Services
Unit-1
2 Marks
1.
2.
3.
4.
5.
6.
7.

Define Merchant banking

What is OTCEI
What is SERA
What is FEMA
What is SEBI
What do you mean by Private Placement?
What is Loan Syndication

16 Marks
1.
2.
3.
4.
5.

Discuss the recent developments in Indian Financial System

Explain the regulatory framework applicable to Indian Financial System
Explain the functions of Merchant bank
Elaborate the recent developments and challenges ahead of merchant banking in India.
Define merchant banking? Discuss in detail the various services rendered by merchant

bankers.
6. Describe the provisions of the company act 1956 relating to allotment of shares and issue
of share certificates.
7. Outline the pre issue activities relating to the issue of share capital through prospectus.
8. Give an overview of Indian Financial System.
Unit-2
2 Marks
1.
2.
3.
4.
5.
6.

What is the role of a banker to a issue

Explain Green Shoe option
What is Book Building
What is E-IPO
Who is an issue Manager?
Who is an Underwriter?

16 Marks
1.
2.
3.
4.

Discuss the role of Merchant Banker in the Pre- Issue Process

Explain the Process of IPO through Book Building
Discuss the guidelines for Merchant Bankers issued by SEBI.
Explain the various methods of public issue? What is an IPO? Explain the IPO issue
management activities performed by merchant banker.

5. Name some of the companies that carry out underwriting business in India
6. Discuss the major issues of mergers and acquisitions in India
7. What is a Prospectus? Who prepares the Prospectus? Discuss some of the contents and it
purpose in prospectus
Unit-3
2 Marks
1. List the services rendered by the Portfolio Managers
2. How is NAV Computed
3. What is Credit Syndication
4. What is Credit Rating Agency
5. What is Portfolio Management?
6. Define reverse merger.
7. Explain some of the fee based management services
8. What are open ended mutual funds?
9. What is Credit Rating?
10. What is Consortium Finance?
16 Marks
1. Explain the credit rating process followed by any one of credit rating agency for a long
term
2. Discuss the methods of business valuation followed during mergers and acquisition.
3. Define a mutual fund and describe the various schemes that can he offered by it. Explain
the various factors to be considered before selecting a mutual
4. What is credit rating? What functions does it provide? Why do companies go for rating
their securities? What benefits do the investors get from credit rating?
5. Write an detailed account on Portfolio Management Services
6. What is Business Valuation? What are the elements in business valuation? What are the
different approaches commonly used in business valuation? Explain
Unit-4
2 Marks
1. Explain if leasing or hire purchasing should be the financing option, when a firm is short
2.
3.
4.
5.
6.
7.

of cash.
What is the tax advantage of lease finance
What is leasing
What is Hire purchasing
Write the Difference between Leasing and Hire Purchasing
What is Swap Leasing
Identify the different ways of determining the rate of interest under hire purchase finance

Agreement.
8. What is operating lease?
9. Name some fund based financial services
10. What is Cross Border Lease?
11. What is Sale and Lease back?
12. What are the Basics of Hire Purchasing?

16 Marks
1. Distinguish Between Financial and operating lease
2. Explain the Parameters that should be Considered when evaluating lease as a financing
plan
3. What is hire purchase? In what ways it is different from leasing? Explain the guidelines
applicable to banks for hire purchase business
4. Explain the various types of leases. Evaluate leasing by highlighting its advantages and
5.
6.
7.
8.

disadvantages
State the different approaches of ascertaining the purchase price by an acquiring firm
Write a detailed note on syndication of working capital funds by merchant bankers
Explain the difference between Lease Financing and Hire Purchase financing
Enumerate the different Ways of determining the rate of interest under the Hire Purchase

Finance Agreement.
9. Discuss the Income tax Implications to a Lessor.
10. Discuss the advantage of leasing. What are its Limitations

Unit-5
2 Marks
1. What is Consumer Credit? Give Example
2. Define Forfaiting
3. Define Factoring
4. Define Venture Capital
5. What is bill discounting?
6. What is real estate financing?
7. What is Debt Equity Ratio?
8. What is the benefit of Bill Discounting?
9. Explain the different types of Consumer Finance
10. What are the various forms of Factoring?
16 Marks
1. What are the advantages of Factoring over bills discounting? Explain with a suitable
Example
2. Explain the Stages in Venture Capital Financing.
3. What are the methods of venture capital financing in India. Explain the importance of
venture capital for the development of a country.
4. What is a credit card? What are the facilities offered to credit card holders? Discuss the
advantages and disadvantages of credit card to various parties.
5. Discuss the scope of venture capital. Offer suggestions for the success of venture capital
in India
6. How is Factoring Different from Bill Discounting? Explain with Examples.

7. Who is a Venture Capitalist? What is the Structure of a generic venture capital fund?
Discuss the types, role and need for venture capital firms and funds.
8. Explain the different types of Factoring.
Prepared By:
K.Selvakumar
Assistant Professor
College of Business Management.
Krishnagiri-635111.