Seat No. _____________ Enrollment No.
___________
GUJARAT TECHNOLOGICAL UNIVERSITY
MBA-SEMESTER-III-EXAMINATION-SUMMER-2025
Subject Code: 4539292 Date: 12/06/2025
Subject Name: Financial Markets and Services
Time: 02:30 PM TO 05:30 PM Total Marks: 70
Instructions:
1. Attempt all questions.
2. Make suitable assumptions wherever necessary.
3. Figures to the right indicate full marks.
4. Use of simple calculators and non-programmable scientific calculators are permitted.
Q.1 Explain the following terms: 14
(a) T-Bills
(b) Bank Receipt
(c) FPO
(d) NFO
(e) Seed Capital
(f) ICRA
(g) NAV
Q.2 (a) Explain about the money market instruments that traded in the Indian 07
money market
(b) What is Book-building? Explain the briefly the process of issue of 07
shares through book-building method
OR
(b) Explain the difference between leasing and hire purchase agreements. 07
Support your answer with relevant examples
Q.3 (a) Explain the concept of Venture Capital. Explain the venture capital 07
financing in detail.
(b) Explain the concept and Mechanism of Mutual Funds. Also explain 07
various types of mutual funds in India.
OR
Q.3 (a) Which are the major credit rating agencies in India? Explain in brief 07
regarding their core functions
(b) What is Factoring? Which are the types of factoring services available in 07
India?
Q.4 (a) What is crowd funding? How it works and what are different crowd 07
funding platforms in India.
(b) Explain the functions of various NBFCs in India 07
OR
Q.4 (a) Briefly discuss the various functions performed by merchant banker 07
(b) Define Securitization. Discuss the benefits of securitization to various 07
stakeholders and also point out its limitations.
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Q.5 CASE STUDY:
Indian Capital Markets have shown tremendous growth in the post
Liberalization era. It remains one of the most resilient globally and poised to
be one of the Top destinations for domestic and global businesses to expand
and invest into. As global economy moves for imminent recovery, India has
shown extraordinary strength to bounce back with greater stability and
sustainability.
Much has happened in the Indian capital market in the last 17 years. With its
foundations laid in socialist based economy of four decades, with strict
government control over private sector participation, foreign trade and foreign
direct investment, India opened its gates to the outside world in the early
1990s.
Since then its economy and financial markets underwent radical changes,
largely in response to the economic crisis of the late 1980s. The government
control on foreign trade and investment were loosened and the barriers to
entry in the days of the license raj were relaxed.
The emergence of Securities and Exchange Board of India (SEBI) as the
supreme capital market regulator showed India’s commitment to come across
as a strong economic force, through establishing market best practices of
enhanced corporate disclosure and increased investor protection.
The establishment of National Stock Exchange (NSE), a state-of-the art
exchange, with sophisticated technology to improve trading practices and
reduce unethical dealings, supported by a strong legal framework and
technological base to strengthen the governance structure, has been the
highlight of the Indian capital market in the last decade. The opening up of
the economy has increased the flow of Foreign Direct Investment (FDI) and
has put India on the global map, as a new-age economic force to reckon with.
Several steps have been taken by the regulator to enhance the level of
corporate governance and reporting requirements of the Indian stock market.
Significant legislation has taken place in this area to curb market
malpractices. The large scams and frauds have taught us that growth without a
robust governance structure falls short of global expectations. The regulators
have been active in responding to such events and in certain cases have
undertaken proactive measures to stop such events from recurring.
(a) Explain the role of SEBI as a regulator of Capital markets in India 07
(b) Explain the structure of Indian Capital markets in India 07
OR
Q.5 (a) Explain the highlights of Explain the highlights of Ketan Parekh and 07
Harshad Maheta scams which are faced by the Indian capital markets in
past years
(b) Explain the role of RBI as a regulator of banking system in India. 07
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