unit 1 – an overview of financial service
TRANSCRIPT
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Unit 1 – An Overview of
Financial Service SectorMANAGEMENT OF FINANCIAL SERVICES
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Introdction
Financial Service Sector !
Financial In"tittion"# Inter$ediarie" – %orrow" & lend to ot'er" for(ro)t
Financial In"tr$ent"
Financial Mar*et" – +'ere )nancial in"tr$ent" are "old
Financial S,"te$ & It" Role In Econo$ic -evelo($ent
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Introdction
C'an.in. Role of Indian %an*in. Sector
S'ift fro$ traditional role of +C lendin.
S(eciali/ed Financial In"titte"
New Avene" for Cor(orate Finance
FII" inve"tin. In India
Indian Co$(anie" Inve"tin. A0road
Intere"t Rate & Forei.n Ec'an.e -ere.lation
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Cla""i)cation of Financial Service InIndia
Unor.ani/ed #Unre.lated and Or.ani/ed # Re.lated
Fnd %a"ed & Non Fnd %a"ed
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Strctre of Indian Financial S,"te$
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Introdction – Financial Service"
C'aracteri"tic" of Financial Service"
Intan.i0ilit,
In"e(ara0ilit, – Service 2rovider & Service
2eri"'a0ilit, – Good" v"3 Service"
Varia0ilit, – S%I v"3 4-FC5 1"t E$(lo,ee v"3 6nd E$(lo,ee
Scce"" Factor of Financial Service"
Innovation E.3 7ota* Ma'indra Savin. Accont
Service A.$entation
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T,(e" of Financial Service"
Lea"in.
%ill -i"contin.
Factorin.
Secriti/ation
Ventre Ca(ital
C
M
Merch
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Cla""i)cation of Ri"* – Macro Ri"*
Li8idit, Ri"*
Fndin. Ri"*
A""et Li8idit, Ri"*
Intere"t Rate Ri"*
Crrenc, Ri"*
E8it, Ri"*
Co$$odit, Ri"*
Re(tation Ri"*
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Cla""i)cation of Ri"* – Micro Ri"*
-efalt Ri"*
Le.al Ri"*
O(erational Ri"*
Model Ri"*
2olitical Ri"*
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New Financial 2rodct" & Service"
Ri"*" & -erivative"
Mar*et Ri"*
-erivative 2rodct" – Forward Contract5 Ftre5 O(tion"5 etc3
ETF – Gold ETF
Gold ETF In India
Unit" 4eld In -e$at For$ Mar*et E9cienc,
-e$ateriali/ation of Secritie" : C-SL ;Central -e(o"itor, Service ;India< Li$NS-L ;National Secritie" -e(o"itor, Li$ited<
Fa"ter Settle$ent 2roce"" ;Clearin. 4o"e<
Cro"" %order Ta*e Over" : Fndin.
Indian Stoc* Mar*et" in tande$ wit' .lo0al $ar*et"
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New Financial 2rodct" & Service"
Evoltion of Re.lator, At'oritie"
2rovide Level 2la,in. )eld
R%I
SE%I
In"rance 2rodct"
Life – Ter$ 2lan & Endow$ent 2olicie"
Non Life – Mediclai$5 Fire5 T'eft5 Flood5 Eart'8a*e5 2ro(ert,5 Ve'icle5 etc3
F-I in In"rance Sector ;6=> to ?@><
IR-A
Cro"" %order Ta*eover -eal" & Financial Re"trctrin.
Service" of Merc'ant %an*er"
Valer"5 Law,er" etc3
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Role of Re.lator, At'oritie"
-o$ain of R%I & SE%I
R%I : %an*"5 FI"5 Fnd %a"ed N%FC"5 Mone, Mar*et5 Forei.n Ec'an.e Mar*e%ond"5 etc3
SE%I – Ca(ita Mar*et5 -erivative Mar*et5 Merc'ant %an*"5 Credit Ratin.5 Und"toc* 0ro*er"5 etc3
F-I – Inve"t$ent Nor$" 0, R%I & Re.i"tered Under SE%I
SAT ;Secritie" A((ellate Tri0nal< : A((ellate Tri0nal a.ain"t SE%I Order"
R%I re.lator of all %an*"
R%I re"(on"i0le for for$latin. contr," $onetar, (olic,
Control InBation & Li8idit, in t'e contr,
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Role of Re.lator, At'oritie"
2rotectin. Intere"t of S$all -e(o"itor"
CRR ;?>< & SLR ;66><
Re(o ;>< & Rever"e Re(o ;D><
Lender of La"t Re"ort
Ca(ital Ade8ac, Nor$ – Mini$$ Ca(ital to A0"or0 %"ine"" Ri"* ;A" a >of a""et"5 @> to 1>< ;'tt(##r0i3or.3in#"cri(t"#%SViewMa"Circlardetail"3a"(!IdH1&ModeHJ <
-e(o"it" U(to R"3 1 Lac" to 0e en"red 0, -e(o"it In"rance Cor(oration ofIndia
http://rbi.org.in/scripts/BS_ViewMasCirculardetails.aspx?Id=8133&Mode=0http://rbi.org.in/scripts/BS_ViewMasCirculardetails.aspx?Id=8133&Mode=0
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Role of Re.lator, At'oritie"
Control of Credit
2riorit, Sector Lendin. ;?J><
Tondon Co$$ittee Nor$" ;2roce"" of +or*in. Ca(ital Loan<
Inventor, Nor$" – Lar.e Co$(anie" w'ere "ed a" 0enc'$ar*
Lendin. Nor$" – CACL – 13 St,le of Credit – -e$and Loan & CC ;%a"ed on Reali"tic 2roKection"<
arterl, Infor$ation S,"te$
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Le.al Enact$ent" in Financial Service Secto
Co$(anie" Act 1@=
Control Aair" of Co$(anie"
Inve"ti.ate Aair" of t'e co$(an,
Tran"(arenc, of aair" of co$(anie" – E.3 MCA
%an*er" %oo*" of Evidence Act 1@1
T'e cort i" e$(owered to order in"(ection of 0oo*" of 0an* & ta*e co(ie" of it
Secritie" Contract Re.lation Act ;SCRA< 1@=
Govern" O(eration of Stoc* Ec'an.e & Tradin. of Secritie"
Finance Act
Indian %d.et
MaKor Area" : -irect & Indirect Tae"
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Le.al Enact$ent" in Financial Service Se
Re"erve %an* of India Act 1@?
E$(ower" t'e R%I to re.late t'e %an*in. Sector in India
Sc'edled Co$$ercial %an* : All 0an*" are li"ted in 6 nd Sc'edle of R%I Act
All t'e (ower" of R%I vi/3 $onetar, (olic,5 credit (olic, etc3 are t'ro.' R%I Ac
In"rance Re.lator, & -evelo($ent At'orit, ;IR-A< Act 1@@@
Control" In"rance Sector
All in"rance co$(anie" to 0e re.i"tered wit' IR-A
-e(o"it In"rance Cor(oration Act 1@=1
In"rance cover to 0an* de(o"it"
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Non %an*in. Financial Co$(anie"#In"tittion" ;N%FC" # N%FI"<
Advanta.e"
-iver"i)cation of )nancial "ector
ic* -eci"ion Ma*in.
C"to$er Orientation
Nic'e & C"to$i"ed Service" Caterin. Need" of S$all & Unor.ani/ed %orrower"
Relativel, 4i.'er Rate of Retrn on -e(o"it"
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Cate.orie" of N%FC"
E8i($ent Lea"in. Co$(an,
4ire 2rc'a"e Co$(an,
4o"in. Finance Co$(an,
Mtal %ene)t Finance Co$(an,
Mi"cellaneo" Non %an*in. Co$(an,
Re"idar, Non %an*in. Co$(an,