Lal Bahadur Shastri Institute of Management, Delhi

Course Title: Management of Financial Course Code: 20107

Services
Academic Area: Finance Course Category: Elective
Course Prerequisite: Corporate Finance Course Credits: 3
Academic Session: 2025 - 26 Programme: PGDM(FM)
Trimester: IV Facilitator: Dr. Rosy Chauhan

Introduction:
The Management of Financial Services course explores the dynamic landscape of financial services in India
and globally. It examines the increasing complexity and interdependence of financial institutions, markets,
instruments, and regulators. The course covers key services such as investment banking, mutual funds, credit
rating, insurance, venture capital, and leasing, with a strong focus on the regulatory framework, particularly
the role of SEBI. Contemporary issues like credit rating credibility, mutual fund reforms, financial sector
crises, and the rise of digital financial services are critically analyzed. Emphasis is placed on blending
theoretical foundations with practical insights through case studies, policy discussions, and real-time data.
Students will develop analytical skills to evaluate financial products, strategies, and regulations in a rapidly
evolving environment. The course prepares them for roles in banking, investment, consulting, and regulatory
bodies, with special attention to Indian market dynamics and global financial developments.

Course Outcomes:
On successful completion of this course, students will be able to:
1. Analyze the structure and evolving components of the financial system and interpret their influence on
national and global economic development.
2. Evaluate the purpose, effectiveness, and strategic role of various financial services—such as credit rating,
venture capital, mutual funds, and insurance—in financial market performance.
3. Apply key regulatory guidelines (e.g., SEBI, Depositories Act, Credit Rating Regulations) to assess
compliance and operational decision-making in financial institutions.
4. Design innovative financial solutions—such as crowdfunding models, digital wallets, and
alternative investments—to meet emerging financial and entrepreneurial needs.
5. Assess the roles, responsibilities, and risk exposures of intermediaries like merchant bankers,
underwriters, custodians, and portfolio managers across the financial services spectrum.
6. Develop strategic responses to current and future challenges in financial services, including shadow
banking, and evolving digital finance ecosystems.
Content:

Module Session Topic & Reading/s

I 1-2 INTRODUCTION: Overview of the Indian Financial System and Financial services, Financial
Services and the Economy, Financial Sector Reforms, Future Challenges.
Shadow Banking, Emergence of Payment Banks, Digital Wallets, and the rise of Fintech in India.
Readings:
1. Bhole, L.M. – Ch. 1, 3, 4
2. Kumar, V., Gupta, K., & Kaur, M. – Ch. 1
3. Pathak - Ch.1,2,3
4. Suresh &Paul - Ch.1
5. Das - Ch.1,2,3
6. Economic and Political Weekly. Money, banking and finance.
https://www.epw.in/money- banking-and-finance
Case 1: Tan, S. L., Tok, Y. W., & Chansriniyom, T. (2020). From crowdfunding to digital banking:
The evolution of Funding Societies. (Harvard Business School Case No. SMU828) Harvard
Business School Publishing.
II 3-4 CREDIT RATINGS: Need for credit rating, Process of Credit Rating, Scope and Methodology of
credit rating for financial companies, banks and financial instruments, SEBI (Credit Rating
Regulations), Credibility of Credit Rating Agencies, Credit ratings as mechanism for regulatory
compliance, credit rating agencies: domestic and International, Advantages and limitations, credit
rating agencies and the global financial crises. Sebi Consultation Paper on Review of the
Regulatory Framework for Credit Rating Agencies (CRAs)
Readings:
1. Kumar, V., Gupta, K., & Kaur, M. – Ch. 17
2. Pathak - Ch.19
3. Khan - Ch.14
4. Vij & Dhawan - Ch. 13
5. CRISIL Ratings Limited. Understanding rating.
https://www.crisilratings.com/en/home/our-business/ratings/understanding-rating.html
6. ICRA ESG Ratings Limited. Ratings. https://www.icraesgratings.in/Ratings/Index
Case 2: Toffel, M. W., & Chen, A. (2025). Calyx Global: Rating carbon credits. (Harvard Business
School Case No. 625102). Harvard Business School Publishing.
III 5-6 MUTUAL FUNDS: Structure and functions of Mutual funds, Types of mutual funds, Performance
evaluation of Mutual Funds, Mutual Fund Valuation, SEBI (Mutual Funds) Regulations
Major Mutual Fund Companies in India.
Categorization & Rationalization of Mutual Fund Schemes in India – New SEBI initiative, SIF’s,
PMS.
Readings:
1. M.Y. Khan (Indian Financial System) – Ch. 15
2. Kumar, V., Gupta, K., & Kaur, M. – Ch. 11
3. Pathak – Ch.15
4. Suresh and Paul - Ch. 19
5. Vij and Dhawan - Ch.7
6. Securities and Exchange Board of India (SEBI). Mutual Funds. SEBI Official Website
https://www.sebi.gov.in/filings/mutual-funds.html
Case 3: Prasad, M.D., and Sampath, A. “Is Over Regulation Good? A Case of SEBI and Mutual
Fund Regulation in India” IIM Kozhikode Case Study (IIMK/CS/143/HLA/2022/01), 2022
IV 7-10 INVESTMENT BANKING: SEBI (merchant banker) regulations 1992, code of conduct, New Issue
Management, pre-issue and post-issue obligations, Pricing of Equity Shares and allotment of
shares in IPO/FPO, prospectus, Book Building, green-shoe option, pricing of securities,
Intermediaries: Underwriters, bankers to an issue, brokers to an issue, registrars to an issue,
debenture trustee, portfolio managers, Bought out Deals, Private Placement and, Rights Issues,
Extensive discussion on SEBI(ICDR) 2018, Guidelines and its implication on IPO performance.
Readings:
1. M.Y. Khan (Indian Financial System) – Ch 6
2. Kumar, V., Gupta, K., & Kaur, M. – Ch. 14
3. Pathak - Ch 6
 4. Vij and Dhawan - Ch.3, 4
5. Das - Ch. 25,26
6. Khan and Jain - Ch.11,12
7. Securities and Exchange Board of India. Master Circular for bankers to an Issue.
https://www.sebi.gov.in/sebiweb/home/HomeAction.do?doListing=yes&sid=1&smid=0
&ssid=6

Mid-term Test 1.5 Hours duration, Total Marks 20

V 11-12 LEASING and HIRE PURCHASE: Overview, Concept and Operations, Economic evaluation
of lease, Purchase or Lease decision, Borrow or Lease decision, Hire Purchase: conceptual and
legal framework, financial evaluation; Securitization, Real Estate Investment Trusts (REITs), and
Infrastructure Investment Trusts (InvITs) as structured financing alternatives governed by SEBI
and RBI guidelines.
Readings:
1. Kumar, V., Gupta, K., & Kaur, M. – Ch. 12, 15
2. Pathak - Ch. 22
3. Khan - Ch.2,3,12
4. Das - Ch.32
5. Vij and Dhawan - Ch.11
6. SEBI. Understanding REITs and
InvITs-https://investor.sebi.gov.in/understanding_reit_invit.html
VI 13-14 FACTORING AND FORFAITING: concept and need for factoring, Bills discounting and
factoring, Factoring in India, RBI guidelines for factoring, Limitations of factoring in India,
International Factoring, FCI, Concept of forfaiting. Difference between factoring and forfaiting.
Readings:
1. Pathak - Ch. 20
2. Vij and Dhawan - Ch.16
3. Khan - Ch. 4
4. Das - Ch.29

VII 15-16 VENTURE CAPITAL: Concept and Regulatory guidelines of SEBI, Stages of Venture
financing, Criteria for appraisal and methods of evaluation, Exit Strategy of VC Funds, Role of
VC Funds/ Institutions and PE funds in promoting Innovation and entrepreneurial ventures in
India. SEBI Foreign Venture Capital Investors (FVCIS) Regulations, 2000. Alternative
Investment Fund, Investment by Angel Investors, Hedge Funds.
Discussion on SEBI Consultation Paper on Crowdfunding in India
Readings:
1. Kumar, V., Gupta, K., & Kaur, M. – Ch. 16
2. Vij and Dhawan – Ch. 15
3. Khan – Ch. 7
4. Das- Ch. 31
5. Securities and Exchange Board of India (SEBI). Venture Capital. SEBI Official Website.
https://www.sebi.gov.in/sebiweb/home/HomeAction.do?doListingAll=yes&cid=12
VIII 17-18 INSURANCE: Concept and Principles of Insurance, Types of Insurance – General Insurance,
Life Insurance, Bank insurance, Reinsurance, Changing scenario of life insurance sector, Key
procedural issues in issue of policies and settlement of claims. IRDA regulations, LIC, Bank
assurance in India, global Insurance Industry: opportunities and Challenges.
Discussion on Insurance Law (Amendment) Act 2015, New regulations in Health Insurance, Web
Aggregators & Insurance Self-Network Platform
Readings:
1. Pathak - Ch.16
2. Suresh and Paul - Ch. 18
3. Vij and Dhawan - Ch.8
Report: PwC Insurance Insights 2025, Capgemini – World Property and Casualty Insurance
Report 2025,
IX 19-20 DEPOSITORY: Need for setting up a depository in India, The depositories Act 1996,
Constituents of a depository system, Functions of the depository, Dematerialization,
Transactions settlement
under the depository system, SEBI regulations, 1996 (Amendments 2016), NSDL, CDSL,
Custodial services, SCHIL.
 Readings:
1. M.Y. Khan (Indian Financial System) – Ch 2, 4
2. Bhole, L.M. – Ch. 7
3. Kumar, V., Gupta, K., & Kaur, M. – Ch. 7
4. Pathak - Ch.18
5. Das - Ch.27
6. Khan, Ch.13
7. Securities and Securities and Exchange Board of India (SEBI). Depositories and
depository participants. SEBI Official Website.
https://investor.sebi.gov.in/differencedp.html

*Note: This is a preliminary schedule and may change due to class needs.

Recommended Readings:

1. Pathak, Bharti V., Indian Financial System, 6th Edition, Pearson Publication, 2024
2. SEBI official website: https://www.sebi.gov.in/
3. CRISIL Ratings Limited. Website: https://www.crisilratings.com/en/home/our-business/ratings.html
4. ICRA ESG Ratings Limited. Ratings. https://www.icraesgratings.in/Ratings/Index
5. Economic and Political Weekly. Money, banking and finance. https://www.epw.in/money-banking-and-
finance
6. Khan, M.Y., Financial Services, 10th Edition, Tata McGraw Hill, 2019
7. Rose, Peter & Hudgins, Sylvia, Bank Management and Financial services, 8th Edition, Tata McGraw Hill,
2024
8. Padmalatha, Suresh & Paul, Justin, Management of Banking and Financial Services, 4th Edition,
Pearson Publication, 2017
9. Bhole, L.M., Financial Institutions and Markets: Structure Growth and Innovations, 6th Edition, Tata
McGraw Hill, 2017
10. Kumar, V., Gupta, K., & Kaur, M., Financial Markets & Institutions, Taxman’s Publications, 2021
11. Khan M.Y., Indian Financial System,11th Edition, Tata McGraw Hill, 2019
12. Vij, Madhu & Dhawan, Swati, Merchant Banking and Financial Services, 2nd Edition, Tata McGraw Hill,
2017
13. Das, Subhash C., The Financial System in India: Markets, Instruments, Institutions, Services and
Regulations, 1st Edition, Prentice Hall of India, 2015
14. Panadian, Punithavathy, Financial Services and Markets, 1st Edition, Vikas Publishing House, 2009
15. Saunders, Anthony, Financial Institutions Management, 8th Edition, McGraw-Hill, 2019
16. Gurusamy, S., Merchant Banking and Financial Services, 4th Edition, Tata McGraw Hill, 2013
17. Pandey, I.M., Venture Capital – The Indian Experience, 1st Edition, Prentice Hall of India, 2009
18. Kothari, Rajesh, Financial Services in India, 1st Edition, Sage, 2010

Evaluation Parameters:
Assessment Marks
IPO Assignment 5 marks
Case Submission & Presentation 15 marks
Quiz 10 marks Internal Assessment
Bloomberg Assignment 10 marks
Mid-Term Exam 20 marks
End-Term Exam 40 marks End-Term Examination
 Total 100 marks

Learning Outcomes to be Assessed

Assessment Method Weightage
LO-1 LO-2 LO-3 LO-4 LO - 5 LO - 6
Group Project 5%      
Case Study Analysis 15%      
Quiz 10%      
Bloomberg Assignment 10%      
Mid-Term Examination 20%      
End-Term Examination 40%      

Pedagogy:
The teaching methodology used on this course will be a judicious mix of lectures, case analysis & discussions, as
well as presentations by the students. However, more emphasis will be laid on case analysis, and assignments.
Cases are expected to be prepared within groups prior to the class. Students are expected to study the readings
and the relevant chapters indicated under each topic before coming to the class.

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