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December, 2009

Ms-46 : Management of Financial Services

1. "External risk arises mainly due to certain developments that take place outside the financial services company. The sources of these risks vary for different services". Explain this statement and discuss these sources of risk that are applicable to different services.

2. What are the main aspects which the merchant banker takes into consideration while selecting a public issue proposal. Discuss the various pre-issue activities undertaken by merchant banker for raising funds from the capital markets.

3. What are the various debt instruments issued by companies, Non-Bank Finance companies and Financial Institutions to raise funds from the market ? Describe their main features.

4. Explain the concept of credit cards ? In addition to credit facility what other facilities and services, are extended by credit card organisations to their customers.

5. What are the principal and other contingencies covered under the life insurance contract ?

6. Discuss the embedded options that are available under life insurance policies. What is leasing ? Classify leasing based on the terms and conditions on which an asset is leased ? Discuss the rights and obligations of the lessor and lessee in a lease contract.

7. Explain the following statements :

(a) 'Transacting the depository way is more advantageous than transacting the traditional way'.

(b)  'Life insurance plans are effective ways of saving taxes'.

(c)  'Credit rating of debt instruments helps the investors in managing credit risk in investment decisions'.

(d) 'Venture capital is quite distinct from other forms of finances ?

8. Write short notes on any four of the following :

(a) Acceptance house

(b) Financial Restructuring

(c) Self Regulation

(d) Securitisation of housing loan

(e) Employer - employee Liability

(f) Mutual Funds

June, 2010

MS-46 : Management of Financial Services

1. Discuss the different types of risks faced by the financial services firms ? Explain the strategies available to manage the credit risk ?

2. What are the distinctive characteristics of financial services ? In what way does information technology affect the financial services sector from the providers' point of view ? Discuss.

3. Explain the concept of securities depositories ? Discuss the importance and functioning of the securities depository system.

4. What do you understand by Initial Public Offer ? Describe its process of public issues and the salient features of the SEBI guidelines regarding the Initial Public Offer.

5. What do you mean by securitisation of Assets ? Describe the process of securitisation. Emphasize the role of Special Purpose Vehicle (SPV) and other parties in the transaction of assets securitisation.

6. Discuss the functions undertaken by National Housing Bank. What restrictions are imposed by it on housing finance companies regarding acceptance of deposits ?

7. Define insurance and explain its basic characteristics ? Discuss in detail the different

types of insurable risks.

8. Write short notes on any four  of the following :

(a) Income funds

(b) Investment banks

(c) Certificates of deposits

(d) Utility ratings

(e) Public liability insurance

(f) Hire purchase system

June, 2011

MS-46 : Management Of Financial Services

1.  "In recent past Indian debt market has become more vibrant." Critically evaluate this statement

2.  Discuss different types of risks associated with financial services.

3.  Insurance Regulatory and Development Authority (IRDA) has its prime objective to protect the interest of policy holders. What regulations have been evolved by it to attain this objective.

4.  Write notes on :

(a)  Green Shoe Option

(b)  Forfeiting

(c)  Liability Insurance

(d)  Whole life policy

5.  Discuss the process, benefits and limitations of credit rating.

6.  What do you understand by Venture Capital ? Discuss the various modes of financing by Venture Capital funds. Explain the difference exist routes available to a Venture Capitalist from an investee company.

7.  Explain the mechanism of factoring and components of 'cost of factoring'. Discuss the present position of factoring services in India.

8.  What is the role of Assets Management Company in a Mutual fund ? Discuss the working mechanism and functions of Assets Management Companies. 

December, 2011

Ms-46 : Management of Financial Services

1.  How does the Securities and Exchange Board of India (SEBI) regulate brokers and sub-brokers in financial market ?

2.  Write notes on :

(a) Marine insurance

(b) Export factoring

(c) Capital Restructuring

(d) Commercial Bill market.

3.  Explain Book Building Process of public issue of securities. Discuss the rules prescribed by SEBI in this regard.

4.  Describe the role of Central Bank of a country in financial system of a country.

5.  Explain :

(a) OTCEI

(b) Rolling Settlement System

6.  Critically evaluate regulations for Credit Rating Agencies in India.

7.  "SEBI regulations made trustees of mutual funds more responsible in comparison with their AMCs" Discuss.

8.   What do you mean by Venture Capital ? Explain the special features of Venture Capital. Discuss the various modes of finance provided by Venture Capital funds. 

December, 2012

Ms-46 : Management Of Financial Services

1. Discuss in detail the risks affecting the business of fund based services. What are the strategies followed by them to manage these risks ?

2. Discuss in detail about the "Participants in Money Market" in India. Mention the names of instruments traded in this market.

3. What is factoring ? Explain the mechanism of factoring.

4. Discuss the role of Government Securities Market in Indian financial system.

5. Explain the Depository system and the terms

(a) Fungibility and

(b) depository participants in detail.

6. Explain in detail the process used for making an IPO of Equity shares of a company. Explain the term 'Book Building' in this regard.

7. Explain the process of Credit Rating. How does SEBI regulate credit rating agencies in India ?

8. What do you understand by securitisation of Assets ? Discuss its mechanism and the

advantages to the parties concerned. 

June, 2013

Ms-46 : Management Of Financial Services

1. What do you mean by 'Financial System' ? Explain the role of Financial Markets in Financial system and discuss the functions of Financial Markets.

2. "The services provided by Financial Institutions have some typical characteristics that make these products quite distinct from the products of Industrial Enterprises." Discuss this statement by bringing out these typical characteristics and significance of these services.

3. Discuss the significance of government securities market in India by bringing out the types of securities traded in it and the participants involved in this market.

4. Explain the concepts of 'Depository System', also discuss its components and importance.

5. 'Credit rating plays a significant role in all credit as well as investment decisions.' Discuss this statement and explain the meaning and benefitsof credit rating to all the interested parties.

6. What is an 'Asset Management Company' ? What is its working mechanism and what are its functions ?

7. 'A venture capital Fund provides finance to the venture capital undertaking at different stages of its life cycle as per its requirements'. Discuss this statement by bringing out the different forms in which such finance is provided.

8. What is 'Factoring' ? What are its advantages and disadvantages ? Discuss the different types of Factoring arrangements and the services provided by them.

December, 2009

MS-44 : Security Analysis And Portfolio Management

1. What are the objectives of security analysis ? How do you measure the risk of a security ?

2. (a) "Systematic risk cannot be controlled, but unsystematic risk can be reduced". Discuss.

(b) Mr. Ranga owns Rs. 1,000 face value bond with five years to maturity. The bond has an annual coupon of Rs. 75. The bond is currently priced at Rs. 970. Given an appropriate discount rate of 10%, should Ranga hold or sell the bond.

3. Explain and illustrate the economy—industry-company (EIC) framework of analysis for equity investment.

4. What is Efficient Market Hypothesis ? How is the Markowitz model useful in portfolio selection ?

5. (a) Discuss the various Formula Plans that are available to an investor for portfolio revision.

(b) A security pays a dividend of Rs. 3.85 and sells currently at Rs. 83. The security is expected to sell at Rs. 90 at the end of the year. The security has a beta of 1.15. The risk free rate is 5 per cent and the expected return on market index is 12 per cent. Assess whether the security is correctly priced.

6. What is portfolio performance evaluation ? Explain the various methods of portfolio

performance evaluation.

7. Write short notes on any four of the following :

(a) Risk and Uncertainty

(b) Zero Coupon Bonds

(c) Efficient Frontier

(d) Filter Test

(F) Sharpe's Index Model

(f) Odd Lot Theory

8. Explain the various steps involved in the public issue of securities. Give salient features of the guidelines issued by SEBI regarding IPOs.

June, 2010

Ms-44 : Security Analysis and Portfolio Management

1. What do you understand by 'Investment' ? Explain the steps involved in the investment process.

2. (a) Define risk. What are the statistical tools that are used to measure risk of securities return ?

(b) Mr. Vamsi is considering the purchase of a bond currently selling at Rs. 878.50. The bond has four years to maturity, face value of Rs. 1,000 and 8% coupon rate. The next annual interest payment is due after one year from today. The required rate of return is 10%.

(i) Calculate the intrinsic value (present value) of the bond. Should Vamsi buy the bond ?

(ii) Calculate the yield to maturity of the bond.

3. Discuss the various measures that have been adopted in India to protect investors' interest in securities market.

4. What is market efficiency ? Explain the various anomalies in efficient market hypothesis.

5. (a) In the context of Risk Adjusted returns, briefly explain :

(i) Treynor's Ratio

(ii) Sharpe's Ratio

(b) Puja and Devika are the two mutual funds Puja has a mean success of 0.15 and Devika has 0.22. The Devika has double the beta of Puja fund's 1.5. The standard deviations of Puja and Devika funds are 15% and 21.43%. The mean return of market index is 12% and its standard deviation is 7. The risk free rate is 8%.

(i) Compute the Jensen Index for each fund.

(ii) Compute the Treynor and Sharp indices for the funds. Interpret the results.

6. What is portfolio revision ? Why does it arise ? Discuss the various constraints in portfolio revision.

7. Distinguish between any four of the following :

(a) Growth Fund and Balanced Fund

(b) Ex-dividend and Cum-dividend

(c) Commercial Paper and Commercial Bill of Exchange

(d) Self-regulation and Legislative regulation

(e) Buy-back of Shares and Surrender of Shares

(f) Money Market and Capital Market

8. Write short notes on any four of the following :

(a) Investment Vs. Speculation

(b) Bullish market

(c) Capital market line

(d) Technical analysis

(e) Efficient portfolio

(f) Price-earnings approach

June, 2011

MS-44 : Security Analysis and Portfolio Management

1.  What do you understand by 'investment ' ? Explain the various factors, which form the basis of the investment process.

2.  (a) Discuss the main provisions of the Securities Contracts (Regulation) Act, 1956 governing the Stock Exchange in India.

(b) The company GVK’s next year dividend per share is expected to be Rs. 3.50. The dividend is expected to grow at a  rate of 10 percent per year in subsequent years. If the required rate of return is 15 percent per year, what should be the price of its shares ? The prevailing market price is Rs. 75 per share.

3.  What is Fundamental Analysis ? Bringout its relevance to the security analyst.

4.  What is Efficient Market Hypothesis (EMH) Explain the techniques for testing the various forms of E.M.H.

5.  (a) What do you mean by Formula plans ? Critically examine the formula plans and discuss their limitations.

(b) Compute the risk of the portfolio from the following information.

6.  Compare and contrast Capital Asset Pricing Model Arbitrage Pricing Theory: (CAPM) and (APT) which of the two is a better model for pricing risky assets and why?

7.  Write short notes on any four of the following

(a)  Systematic and unsystematic risk

(b)  Dow Theory

(c)  Efficient Frontier

(d)  Sharpe's Single Index Model

(e)  NSDL

(f)  Treyner's index

8.  (a) "Mutual funds provide stability to share prices, safety to investors and resources to prospective entrepreneurs". Comment.

(b) Briefly discuss the different types of Mutual Fund Schemes introduced in India.

December, 2011

Ms-44 : Security Analysis and Portfolio Management

1. 'The investment environment has undergone several changes in India since 1991'. Discuss this statement and explain the three elements of investment environment.

2. (a)  What are the objectives and functions of Securities Exchange Board of India ?

(b) A bond has a par value of Rs. 1,000. It has a coupon rate of 9%. It matures after 8 years. Its current market price is Rs. 800. What is the yield to maturity of the bond ?

3. Differentiate between fundamental analysis and technical analysis. Discuss the usefulness of odd of theory and Elliot wave theory on stock market prediction.

4. Explain the concept of 'efficient market'. Discuss the implications of 'efficient market hypothesis' for security analysis.

5. (a)  What are the basic assumptions behind the Markowitz Portfolio theory ?

(b)  Rotari Holdings Ltd., an investment company has invested in equity shares of a blue chip company. Its

Risk free return (Rd = 9%

Expected total return (R m) =16%

Market sensitivity index  (Bi)  = 0.8

Calculate the expected rate of return on the investment made in the security.

6. What are formula plans ? How is a constant rupee value plan different to a constant ratio plan ? Discuss.

7. Write short notes on any four of the following :

(a) Warrant

(b) Industry analysis

(c) Filter rule

(d) Capital market line

(e) Arbitrage pricing theory

(f) Beta

8.  (a)  "Depository Service is another major development in the Indian Stock Market". In the light of this statement explain the function and significance of depository service in India.

(b) Distinguish between (i) Private Placement and Rights Issue and (ii) Listing of Securities and Rating of Securities.