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Financial Services (Theory) [1]

Paper Code: 
25CBFS202
Credits: 
04
Contact Hours: 
60.00
Max. Marks: 
100.00
Objective: 

The course will enable the students to develop an understanding of the functioning of various financial services
such as Mutual Funds, Leasing, Venture Capital, Merchant Banking, credit and debit cards, etc.

Course Outcomes: 
Course
 
Learning outcome (at course
 
level)
 
Learning and
Teaching Strategies
 
Assessment
Strategies
 
Course
Code Course Title
 
25CBFS202
 
Financial
Services
(Theory)
 
CO55 Assess the workings of
financial services and create
advanced strategies for
different innovative financial
instruments.
CO56 Evaluate the role of
venture capital and mutual
funds in India.
CO57 Critically evaluate the
mechanism of leasing and
hire purchase.
CO58 Examine the
mechanism of securitization
of debt and merchant
banking.
CO59 Examine various aspects
of factoring services and
different categories of credit
cards.
CO60 Contribute effectively in
course-specific interaction
 
Approach in teaching:
Blended Learning,
Collaborative approach,
Interactive Lectures,
Discussion, Group
Projects, PowerPoint
presentation.
Learning activities for
the students:
Self-learning
assignments, Seminar
presentations, Case
Study Analysis,
Brainstorming activities
 
Class tests, CA
Test,
Semester end
examinations,
Quiz,
Evaluation of
student
Presentations,
Evaluation of
Individual and
group projects,
Assessment of
Project Reports
and viva voce.
 
   
   

 

12.00
Unit I: 
Financial Services

Financial Services-
 Introduction, Scope, and importance of financial services
 Causes for Financial Innovation,
 Classification of the Financial Service Industry

 New financial products and services, Innovative financial Instruments, challenges in the financial service
sector, present scenario.

12.00
Unit II: 
Venture Capital and Mutual Funds

Venture Capital
 concept, features, scope of venture capital,
 methods and importance of venture financing
 Guidelines for venture financing
Mutual Fund Services:
• definition, fund Unit vs share, Organization of the fund
 types of Mutual fund and significance of Mutual fund
 Reason for slow growth, future of mutual fund industry

12.00
Unit III: 
Leasing and Hire Purchase

Leasing-
 Definition, Types, Advantages & Disadvantages of lease,
 Problems faced by the lease Industry in India.
 Accounting and tax aspects of leasing.
 Legal Aspects of leasing
 Factors influencing buy/borrow or lease decision
Hire Purchase-
 Meaning, features, difference between lease and hire purchase,
 Bank credit for Hire Purchase.

12.00
Unit IV: 
Merchant banking and Credit Cards

Merchant banking:
 concept, Merchant banks vs Commercial banks,
 Scope , problems of merchant banks,
 Services of Merchant Bank in India.
 Guidelines for merchant bankers
Credit cards-
 Meaning, Types, Parties,
 Procedure, Facilities offered to cardholders
 Benefits & Demerits of credit cards.
 Prepaid instruments

12.00
Unit V: 
Securitization of Debt and Factoring

Securitization of Debt-
 Meaning, Structure,
 Benefits of Securitization of debts
• Types of securities
Factoring
 Meaning, Functions, Types of Factoring, Modus Operandi, Benefits
 Factoring vs Securitisation, Factoring vs Discounting, Factoring vs. forfeiting

Essential Readings: 

1. Gordan, Natrajan” Financial Markets & Management of Financial Services” Himalayan publication, New
Delhi.
2. Bhalla V.K.-“Financial Markets &Services” Anmol Publications, Delhi

References: 

1. Srivastava R.M.-“Management of Indian Financial Institutions”Himalaya Publication, New Delhi
2. Jain, Khanna, Tiwari, “ Banking and Public Finance” V.K India Enterprises, New Delhi.
3. Natarajan S, Parameshwaran R, “ Indian Banking” S.Chand& Company LTD, New Delhi
4. Khan M.Y. - “Indian Financial System” Vikas Publishing house, New Delhi
5. Sinha, S.L.N., “Development Banking in India”, (Madras: Institute of Financial Management and
Research, 1976).
6. Khan and Jain, “Financial Services,” 2nd ed. Tata McGraw Hill, 2004.

e- Resources:
1. https://www.google.co.in/books/edition/MANAGEMENT_OF_FINANCIAL_INSTITUTI... [2]
C?hl=en
2. https://www.google.co.in/books/edition/Financial_Markets_Institutions_Se... [3]
&gbpv=1&dq=financial+markets+and+services&printsec=frontcover
3. https://www.google.co.in/books/edition/FINANCIAL_MARKETS_INSTITUTIONS_AN... [4]
AAQBAJ?hl=en&gbpv=1&dq=financial+markets+and+services&printsec=frontcover
4. Indian Journal of Finance
5. https://www.journals.elsevier.com/journal-of-banking-and-finance [5]
6. Journal of Banking, Information Technology and Management
7. https://www.springer.com/journal/10693 [6]

Academic Year: 
2025-2026 [7]

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Source URL: https://finance.iisuniv.ac.in/courses/subjects/financial-services-theory-0

Links:
[1] https://finance.iisuniv.ac.in/courses/subjects/financial-services-theory-0
[2] https://www.google.co.in/books/edition/MANAGEMENT_OF_FINANCIAL_INSTITUTIONS/AanaFjgH80s
[3] https://www.google.co.in/books/edition/Financial_Markets_Institutions_Services/JtGIVsrtaYcC?hl=en
[4] https://www.google.co.in/books/edition/FINANCIAL_MARKETS_INSTITUTIONS_AND_SERVI/MBdpDw
[5] https://www.journals.elsevier.com/journal-of-banking-and-finance
[6] https://www.springer.com/journal/10693
[7] https://finance.iisuniv.ac.in/academic-year/2025-2026