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Financial Markets and Services Question Paper

Financial markets and services (University of Calicut)

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Code No: MB1644/R16

MBA IV Semester Regular/ Supplementary Examinations, May-2019
FINANCIAL MARKETS AND SERVICES
Time: 3 Hours Max. Marks: 60
Answer Any FIVE Questions
All Questions Carry Equal Marks
Question No. 8 is Compulsory

1. a Discuss the growth of financial services in India. 6M

b What are the various financial services available for a retail investor? Explain. 6M

2. a Explain the role of merchant bankers in Issue Management? 6M

b What are the functions of SEBI in merchant banking activities? 6M

3. a What are the financial sector reforms made in last one decade? 6M
b Explain secondary market operations in financial markets. 6M

4. a Outline the financing pattern under Venture capital. 6M

b Explain the various types of leases. 6M

5. a Discuss briefly about credit rating system of CRISIL. 6M

b Explain about Bill Discounting. 6M

6. a Explain sector specific mutual fund scheme and Systematic Investment Plan. 6M
b Discuss the progress various phases of Mutual funds in India. 6M

7. a Write the features and befits of Demat account. 6M

b Discuss the role of NSDL. 6M

8. CASE STUDY
A firm can lease at Rs. 2,50,000 a machine for five years at Rs. 62,500. It can 12M
purchase the machine at Rs. 50,000 down payment and the balance in five equal
payments at 10% interest. The firm qualifies for Rs. 20,000 tax credit in year
zero if it preleased. The machine will be depreciated at straight line calculations
to a book value of Rs. 50,000 at the end of the year five. The cash value at that
time will be zero. The cost of debt is 10% and the cost of capital is 12%. Should
machine be leased or owned?
Present value factor at 10%
Year Factor
0 1.000
1 0.909
2 0.826
3 0.751
4 0.683
5 0.621
12% cost of capital factor is 0.567.
*****

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Downloaded by Rina's World (naomi4theos@gmail.com)
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Code No: MB1644/R16

MBA IV- Semester Regular Examinations, April-2018
FINANCIAL MARKETS AND SERVICES
TIME: 3 hrs Max. Marks: 60

Answer Any FIVE Questions

All Questions Carry Equal Marks
Question No.8 is Compulsory

1. a) “There is a close nexus between financial system and economic development”. –

Comment?
b) Explain the role of SEBI in the Indian Financial System?

2. a) Explain how a merchant Banking functions?

b) Discuss the post –issue obligations of merchant bankers in India?

3. a) Describe the legal aspects and guidelines relating to Venture capital financing in India?
b) What are the guidelines for venture Capital?

4. a) Explain the debt rating system in India.

b) Briefly discuss about the factoring mechanism followed in India.

5. a) Define Mutual fund? What are the types of Mutual fund schemes?
b) Write about the organization and Management of Mutual funds in India?

6. a) Explain the differences between Primary market and Secondary market?

b) Discuss the various methods of raising capital in the secondary market?

7. a) What is the concept of debt securitization?

b) Explain the role of NSDL in De-mat services.

8. Case Study (compulsory):

A small firm has total credit sales of Rs. 90 lakh, and its average collection period is 90 days. Past
experience indicate that the bad debt losses are around 1 percent of credit sales. The firm spends
around Rs.1, 20,000 per annum on administering its credit sales. This cost includes salaries of one
officer and two clerks who handle credit checking, collection etc. Besides, it also incurs telephone
and telex charges, which are avoidable costs. A factor is prepared to buy the firm’s receivables,
with a charge of 2 percent commission. The factor will also pay advance against receivables to
the firm at an interest rate of 18 percent after with holding 10 percent as reserve.

i) What should the firm do? Assume 360 days in a year and the current rate of bank interest
is 16 percent per annum.
*****

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Downloaded by Rina's World (naomi4theos@gmail.com)

 lOMoARcPSD|28758161

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 lOMoARcPSD|28758161

Downloaded by Rina's World (naomi4theos@gmail.com)

 lOMoARcPSD|28758161

Financial Markets and Services

2019

Downloaded by Rina's World (naomi4theos@gmail.com)

 lOMoARcPSD|28758161

Downloaded by Rina's World (naomi4theos@gmail.com)

 lOMoARcPSD|28758161

Downloaded by Rina's World (naomi4theos@gmail.com)

 lOMoARcPSD|28758161

Downloaded by Rina's World (naomi4theos@gmail.com)

 lOMoARcPSD|28758161

Downloaded by Rina's World (naomi4theos@gmail.com)

 lOMoARcPSD|28758161

Downloaded by Rina's World (naomi4theos@gmail.com)

 lOMoARcPSD|28758161

Downloaded by Rina's World (naomi4theos@gmail.com)

 lOMoARcPSD|28758161

Downloaded by Rina's World (naomi4theos@gmail.com)

 lOMoARcPSD|28758161

Downloaded by Rina's World (naomi4theos@gmail.com)