1. JOSEPH’S COLLEGE OF COMMERCE (AUTONOMOUS)

SUPPLEMENTARY EXAMINATION –   APRIL 2013

 B.COM. – IV SEMESTER

FINANCIAL MARKETS AND SERVICES

TIME: 3 HRS                                                                                                MARKS : 100

SECTION – A

1. Answer ALL the questions.                          (10 x 2 = 20)
2. “Financial system provides the intermediation between savers and investors and promotes faster economic development”. Substantiate.
3. The RBI has taken several steps to bring ————– sector of financing under its control but did not succeed. Explain giving two examples of this sector.
4. How does a Money Market differ from a Capital Market? Give four points.
5. Explain the method of Primary Issue which helps the issuing company to discover volume and price of the issue.
6. Write a note on NSDL.
7. What is a derivative instrument? Explain the derivative contract that is tailor made and not standardised.
8. Explain two innovative fees based financial services.
9. ————— is a short term credit facility that is always extended with recourse. Explain the process.
10. What is leveraged lease?
11. “Stock markets render invaluable services to the investors, companies and to the economy as a whole.”  explain in four points.

SECTION – B

1. Answer any FOUR                                            (4 x 5 = 20)
2. What is the significance of Listing? Explain briefly the steps to be followed for the same.

 

12. Write short notes on:
13. Deep discount Bonds
14. Commercial Papers

 

13. What are the differences between financial lease and operating lease?

 

14. What are the scope and limitation of a Merchant banker?

 

15. Briefly discuss the procedure to be followed and the method of trading in a stock exchange as a speculator/investor.
16. Observe the following picture. Explain the funding method which can help the manager.

 

 

 

SECTION – C

• Answer any THREE Each carries 15 marks.                 (3 x 15 = 45)

17. “A firm may propose to acquire a certain asset either with equity funds or with a financial lease.”
18. What are the factors influencing buy/lease decisions?
19. Explain the procedure followed to evaluate a lease.

 

18. What is the significance of Venture Capital financing? Explain the stages of Venture Capital Financing.

 

19. How does SEBI protect the interest of Investors? Explain with reference to its Functions & Powers.

 

20. Discuss briefly:
21. Lame Ducks
22. S&P CNX 100

• NASDAQ

1. Open-ended Funds
2. Forfeiting

P.T.O……..

 

 

21. Discuss in detail about the method of investing depicted in the picture.

 

SECTION – D

1. Compulsory Question                                 (1 x 15 = 15)

1. An investor has invested in NCDs of Tata Chemicals, Eid Party ltd., Bharti Tele-Venture & United Western Bank in the ratio of 4:3:2:1.

Credit rating agency ICRA has reaffirmed the LAA + rating assigned to the Rs.125 crore non-convertible debentures of Tata Chemicals to AA/ stable.

Eid parry India ltd., has informed BSE that CRISIL has upgraded the rating for the non convertible debenture to AA/stable from AA-/stable.

Credit rating agency has upgraded the rating of Rs.100 crore non convertible debentures of Bharati Tele-Venture from ‘LAA’ to ‘LAA+’ indicating high credit quality.

CARE has placed B+ rating of United Western Bank NCDs under ‘credit watch’.

Questions:

1. Advice the investor with regard to revision of the portfolio. Discuss with reference to the significance of the rating symbols.               (8 marks)
2. Explain the Credit Rating Process.  (7 marks)

 

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