FM06 Management of Financial Services
FM06 Management of Financial Services Assignment – I
Assignment Code: 2014FM06B1
Last Date of Submission: 15th October 2014 Maximum Marks: 100
Attempt all the questions. All the questions are compulsory and carry equal marks.
Section-A 1.
Explain the significance of financial institutions in promoting economic growth.
2.
“With the increasing adoption of information Technology, the banking in India has undergone a seachange.” Comment on this statement with particular reference to new Private Sector Banks.
3.
What are the powers vested with SEBI to promote the development of securities market & to protect the interests of investors?
4.
Do you believe that the Non-banking finance companies have played their role as effective financial intermediaries in India? Have they contributed to the economic growth?
Section-B Case Study Pankaj is considering a rights offering to raise funds to finance new projects which requires Rs.4.5 crore. The floatation cost will be 10% of funds raised. The company currently has 20 lakh shares outstanding & the correct market price of its share is Rs.100. The subscription price has been fixed at Rs.50 per share. I. II. III. IV.
How many shares should be sold to raise the funds? How many rights are required to buy one new share? What is the value of one right share? Show the impact on the shareholder’s wealth who holds required rights to buy one new share if:a. He exercises his right b. Sells his right c. Does not exercise his right
FM06/July 2014
Page 1/2
FM06 Management of Financial Services Assignment – II
Assignment Code: 2014FM06B2
Last Date of Submission: 15th November 2014 Maximum Marks: 100
Attempt all the questions. All the questions are compulsory and carry equal marks.
Section-A 1.
What do you understand by Development Financial Institutions? What role have they played in the growth of industrial sector in India?
2.
What do you understand by market makers? Explain the concept of Rolling settlement in Stock Exchanges.
3.
What are the criteria for authorization of a merchant banker? What are defaults of Merchant bankers & penalty points for them?
4.
Discuss the latest regulations relating to the organization & management of Mutual funds issued by SEBI. What are the tax incentives for investment in Mutual funds? Section-B Case study
The equity shares of Ramacast Ltd. are being sold at Rs.210. A 3month call option is available for a premium of Rs.6 per share & a 3 month put option is available at a premium of Rs.5 per share. Find out the net pay off of the option holder of the call option given that a. The strike price in both the cases is Rs.220 b. The share price on the exercise day is Rs.200 or Rs.210 or Rs.220 or Rs.230 or Rs.240
FM06/July 2014
Page 2/2
Assignment Code: 2014FM06B1
Last Date of Submission: 15th October 2014 Maximum Marks: 100
Attempt all the questions. All the questions are compulsory and carry equal marks.
Section-A 1.
Explain the significance of financial institutions in promoting economic growth.
2.
“With the increasing adoption of information Technology, the banking in India has undergone a seachange.” Comment on this statement with particular reference to new Private Sector Banks.
3.
What are the powers vested with SEBI to promote the development of securities market & to protect the interests of investors?
4.
Do you believe that the Non-banking finance companies have played their role as effective financial intermediaries in India? Have they contributed to the economic growth?
Section-B Case Study Pankaj is considering a rights offering to raise funds to finance new projects which requires Rs.4.5 crore. The floatation cost will be 10% of funds raised. The company currently has 20 lakh shares outstanding & the correct market price of its share is Rs.100. The subscription price has been fixed at Rs.50 per share. I. II. III. IV.
How many shares should be sold to raise the funds? How many rights are required to buy one new share? What is the value of one right share? Show the impact on the shareholder’s wealth who holds required rights to buy one new share if:a. He exercises his right b. Sells his right c. Does not exercise his right
FM06/July 2014
Page 1/2
FM06 Management of Financial Services Assignment – II
Assignment Code: 2014FM06B2
Last Date of Submission: 15th November 2014 Maximum Marks: 100
Attempt all the questions. All the questions are compulsory and carry equal marks.
Section-A 1.
What do you understand by Development Financial Institutions? What role have they played in the growth of industrial sector in India?
2.
What do you understand by market makers? Explain the concept of Rolling settlement in Stock Exchanges.
3.
What are the criteria for authorization of a merchant banker? What are defaults of Merchant bankers & penalty points for them?
4.
Discuss the latest regulations relating to the organization & management of Mutual funds issued by SEBI. What are the tax incentives for investment in Mutual funds? Section-B Case study
The equity shares of Ramacast Ltd. are being sold at Rs.210. A 3month call option is available for a premium of Rs.6 per share & a 3 month put option is available at a premium of Rs.5 per share. Find out the net pay off of the option holder of the call option given that a. The strike price in both the cases is Rs.220 b. The share price on the exercise day is Rs.200 or Rs.210 or Rs.220 or Rs.230 or Rs.240
FM06/July 2014
Page 2/2
