| PAGE NO.
| STRUCTURE OF FINANCIAL SYSTEM
| OTHER FINANCIAL SERVICES
| STOCK MARKETS
| MUTUAL FUNDS
| DEBT MARKET
| INNOVATIVE FINANCIAL INSTRUMENTS
| FUNDAMENTAL OF FINANCIAL SERVICE
| FINANCIAL SERVICE THEORIES
| CAUSES OF FINANCIAL INNOVATIONS
| EMERGING FUNCTIONS IN MARKETING OF FINANCIAL SERVICE
| CHAPTER 14
| PORTFOLIO MANAGEMENT
The financial services sector plays a predominant role in stimulating and sustaining the economic growth of a nation. Till recently, the public sector institutions have been showing dominance in all the areas of financial services like banking, insurance, term lending, housing finance, etc in the Indian financial system. But after the initiative of economic liberalization by the government, the private as well as the foreign players are also putting rapid strides in this sector. Consequently the financial services sector in India started growing rapidly in the economy. The competitive climate in the Indian financial services sector has drastically changed over the last few years.
MEANING OF FINANCIAL SERVICES
Financial services mean mobilizing and allocating savings. It includes all activities involved in the transformation of savings into investment. It is also called as “financial intermediation”. Financial intermediation is a process by which funds are mobilized from a large number of savers and make them available to all those who need it and particularly to corporate customers. Thus, financial services sector is a key area and it is very vital for industrial developments. Financial services refer to services provided by the finance industry. The finance industry encompasses a broad range of organizations that deal with the management of money. Among these organizations are banks, credit card companies, insurance companies, consumer finance companies, stock brokerages, investment funds and some government sponsored enterprises. As of 2009, the financial services industry represented 40% of the market capitalization of the S&P 500 in the United States. SCOPE OF FINANCIAL SERVICES
Dealing in foreign exchange market activities.
Dealing in secondary market activities.
Participating in money market instruments like commercial papers, certificate of deposits, treasury bills, discounting of bills. Arrangements of funds from financial institutions for the clients project cost or his working capital requirements. Planning for mergers and acquisitions and assisting for their smooth carryout. Promoting credit rating agencies for the purpose of rating companies which want to go for public issues of debt instruments. Guiding corporate customers in capital restructuring.
HISTORY OF FINANCIAL SERVICES
The Indian financial services industry has undergone a drastic change in 1990. During the late seventies and eighties, the Indian financial services industry was dominated by commercial banks and other financial institutions which cater to the requirements of the Indian industry. Infact the capital market has played a secondary role. The economic liberlisation has brought in a complete transformation in the Indian financial services industry. Prior to the economic liberalization, the Indian financial sector was characterized by so many factors which retarded the growth of financial services sector. INDIAN FINANCIAL SERVICE SECTOR
The Indian financial services industry has experienced significant growth in the last few years. There has been a considerable...
Please join StudyMode to read the full document