Approved by AICTE – New Delhi & Affiliate to ANNA UNIVERSITY – Chennai

545, Sathy Main Road, Kurumbapalayam (post), Coimbatore – 641 107

LESSON PLAN

TARGET SESSIONS - 40
DEGREE - MBA (2014 - 2015 ) SEMESTER III
Hrs
COURSE TITLE – MERCHANT BANKING AND
COURSE CODE -BA7022
FINANCIAL SERVICES
FACILITATOR - Mrs. VIMALA.S

AIM:
To enable the student to understand the modes of issuing securities and to acquire
financial evaluation techniques of leasing and hire purchase.

COURSE OBJECTIVE:

The objective of this course is to make the students to understand

 Functions of Merchant Banking Services
 Issue of Securities
 To get an idea about Leasing and Hire Purchase
 Factory and forfeiting
 Issue of Venture capital

LEARNING OUTCOMES:

Students would become acquainted with the process of Initial Public Offering (IPO) and
Post Issue Activities. They would also become analytically skillful. They would become familiar
with the knowledge of Leasing and Hire Purchasing.

COURSE DELIVERY:
Facilitate the students through theory and practical applications. To develop true interest in the
subject four text books and several reference books are prescribed as the sources of study
material. The teaching methodologies will include lecture, discussions through PPT’s, Video
show, Assignment writing and seminars. Students can approach the course facilitator for any
clarifications in the subject and also refer relevant sources for their assignment and seminars.
GRADING PATTERN

Unit Total
No. Component Times Weight
Score Score
1 Attendance* 05 05
2 Internal Assessment Tests 50 3 100 10
3 Assignments - 5 5 5
4 End Semester Examination 100 1 100 80
Total 100

ATTENDANCE MARKS
Percentage of Attendance Weight
96-100 5
91-95 4
86-90 3
81-85 2
76-80 1

CLASS PARTICIPATION:

It means physical, mental and intellectual participation in class. Students are expected to read
well in advance for active participation in class. They need to contribute to the academic
discussion in every session and quality of such contribution must be appreciable. They are
welcome to share their practical experiences, provided those are relevant and related to topic.
 COURSE PLAN

Sessio Content Pedagog Resource

n y
UNIT I - MERCHANT BANKING
1 Introduction – An overview of PPTI* SRM-1, CH -1, Pg: 1,2 & 5)
Indian Financial System
2 Merchant Banking in Indian – PPTI* SRM-1, CH -1, Pg: 1-12
Recent Developments and
Challenging ahead
3 Institutional Structure – PPTI* SRM-1, CH -2, Pg: 13-25
Functions of Merchant Bank –
Legal and Regulatory
Framework
4 Relevant Provisions of PPTI* SRM-1, CH -2, Pg: 26-3
Companies Act – SERA – SEBI
guidelines –
5 FEMA – Relations with Stock PPTI* SRM-1, CH -11, Pg: 179-190
Exchanges and OTCEI

UNIT II – ISSUE MANAGEMENT

6 Role of Merchant Banker in PPTI* SRM – 1, CH – 3, Pg 33-39
Appraisal of Projects,
Designing Capital Structure and
Instruments
7 Issue Pricing, Book Building, PPTI* SRM – 1, CH – 4, Pg 42
Preparation of Prospectus
8 Role of Registrars, Bankers to PPTI* SRM – 1, CH – 4, Pg 47-48
the Issue,
9 Selection of Bankers, PPTI* SRM – 1, H – 4, Pg 47-48
Advertising, Consultants etc.
10 Underwriters and Brokers PPTI* SRM-1, CH -6, Pg: 82 – 83

11 Offer for sale, Green Shoe PPTI* SRM-1, CH -6, Pg: 93 – 96,
Option,, E-IPO, SRM-1, CH -4, Pg: 49-51
https://www.learnwithflip.com/buy-now.html?
category_id=2756&category=FLIP---NCFM-:-Issue-
Management%5Ch
12 Private Placement, Bought out PPTI*
deals SRM-1, CH – 4, Pg: 57
13 Placement with FIs, MFs, PPT I* SRM-1, CH – 4, Pg: 60-77
14 Issue Marketing, Advertising PPT I* SRM-1, CH – 4, Pg: 60-77
Strategies
15 FIIS etc, Off shore Issues, NRI PPT I* http://www.authorstream.com/Presentation/aSGuest43070-
Marketing, Post Issue Activities 374371-merchant-banking-education-ppt-powerpoint/
 UNIT III - OTHER FEE BASED SERVICES

18 Mergers and Acquisitions PPT I* SRM – 1, CH – 12, Pg 202-222

19 Portfolio Management Services PPTI* SRM – 1, CH – 13, Pg 202-222

20 Portfolio Management Services PPTI* SRM – 1, CH – 13, Pg 202-222

22 Credit Syndication PPTI* SRM – 1, CH – 14, Pg 255-270

23 Credit Rating PPTI* SRM – 1, CH – 27, Pg 429-445

24 Mutual Funds PPTI* SRM – 1, CH – 29, Pg 452-467

25 Mutual Funds PPTI* SRM – 1, CH – 29, Pg 452-467

UNIT IV - FUND BASED FINANCIAL SERVICES

26 Introduction to Leasing & PPTI* SRM - 1 - CH – 21, Pg 327 – 328
Characteristics of Lease
27 Types of leasing PPTI* SRM - 1 - CH – 21, Pg 328 – 330
28 Advantages and Disadvantages of PPTI* SRM – 1, CH – 21, Pg 337 – 340
leasing,
29 Introduction to Hire Purchasing, PPTI* SRM – 1, CH – 22, Pg 345
Rights of Hirer, Accounting of Hire
Purchasing
30 Difference between Leasing and PPTI* SRM – 1, CH – 22, Pg 346-349
Hire Purchasing, Hire Purchasing –
Problems

UNIT V – OTHER FUND BASED FINANCIAL SERVICES

31 Consumer Credit – Credit Cards PPT I* SRM – 1, CH- 14, Pg 344 -359
32 Real Estate Financing, Bills PPT I* SRM – 1, CH-26, Pg 393-409
Discounting
33 Factoring, Forfaiting PPT I* SRM – 1, CH-22, Pg 356-357
34 Venture Capital PPT I* SRM – 1, CH-24, Pg 363 -374, 476-478
35 Types of venture capital, Stages of PPT I* SRM – 1, CH-24, Pg 374 -377, 480
Venture capital Financing
ASSIGNMENTS PREPARATION
Assignments will be individual assignments. Topics are given in the schedule.
 The length of written assignment should not exceed 04 pages (A-4 size) with 1.5 space
writing.
 It must include a face-sheet with desirable information.
ASSIGNMENT TOPICS
Assignment Submission
Title
Topic Coverage Date
Unit 1 You want to apply for merchant banker. Find out the list of
regulations that a merchant banker needs to follow in India.

Unit 2 Write the process of IPO for your own company

Unit 3 Assess the significant positive (or negative) effects of the

merger or acquisition. Provide at least two (2) examples of
those effects now that the merger or acquisition has been
completed.
Unit 4 Rights of Hire purchase agreement

Unit 5 Write down the hidden cost associated with Credit Cards –
Discuss

RULES AND REGULATIONS FOR ASSIGNMENT

Students are advised to produce original piece of work and to strictly avoid plagiarism. It is a
critical offence to plagiarize material. This facilitator has a zero tolerance policy. No excuses on
this one! All assistance received or references obtained from others should be documented in
accordance with ethical reporting practice. Proper formatting of references will be carefully
examined.

CODE OF CONDUCT:
Any form of cheating, plagiarism, impersonation, falsification of a document as well as any other
form of dishonest behavior related to the obtaining of academic gain or the avoidance of
evaluative exercises committed by a student is judged as an academic offence.
INTERNAL ASSESSMENT TESTS DATES AND PORTIONS
TEST Date Portions
IA Test 1 25/08/2014 Unit 1 and Unit 2
IA Test 2 09/10/2014 Remaining Unit 2 ,Unit 3, unit 4
Model 06/11/2014 All Units

IMPORTANT INFORMATION:
1. Students are required to be present in class at scheduled time.
2. They must carry their subject note book and lesson plan to the class.
3. If a student fails to attend the class within 05 minutes of its scheduled time, he will be
marked absent.
4. Students are required to take consent from the course faculty for any kind of permission.

LEARNING RESOURCES:
S
RESOURCES PARTICULARS
N
TB - 1: Khan M.Y., Financial Services, Tata McGraw – Hill, 12th Edition,
1 TEXT BOOKS 2010.
TB - 2: Tripathy Nalini Parva, Financial Services, PHI Learning, 2011
RB - 1: Machiraju, Indian Financial System, Vikas Publishing House, 2nd
Edition, 2010.
RB – 2: Verma J.C, A Manual of Merchant Banking, Bharath Publishing
REFERENCE House, New Delhi.
2
BOOKS RB – 3: Varshney P.N. & Mittal D.K., Indian Financial System, Sultan
Chand & Sons, New Delhi.
RB – 4: Sasidharan, Financial Services and System, Tata Mcgraw Hill, New
Delhi, 2nd Edition 2011.
SUPPLEMENTARY SRM – 1: Dr.Gurusamy S, Merchant Banking and Financial Services,
3 READING McGraw Hill Education (India) Private Limited, New Delhi, 4th Edition
MATERIALS 2013
http://www.ccmf-uwi.org/files/publications/journal/2007_1_2/174_204.pdf
4 JOURNALS http://pu.edu.pk/images/journal/pesr/PDF-FILES/8%20EKERETE
%20Marketing%20of%20
Financial%20Services%20in%20Nigeria.pdf
https://www.learnwithflip.com/buy-now.html?
5 WEBSITES
category_id=2756&category=FLIP---NCFM-:-Issue-Management%5Ch
http://www.youtube.com/watch?v=d3WiHjWOTE8
6 VIDEOS
http://www.youtube.com/watch?v=ggQgByQ2i4U

COURSE FACILITATOR PRINCIPAL/DIRECTOR