...to provide long-term industrial finance in any significant manner. It is against this backdrop that the government established The Industrial Finance Corporation of India (IFCI) on July 1, 1948, as the first Development Financial Institution in the country to cater to the long-term finance needs of the industrial sector. The newly-established DFI was provided access to low-cost funds through the central bank's Statutory Liquidity Ratio or SLR which in turn enabled it to provide loans and advances to corporate borrowers at concessional rates. This arrangement continued until the 1990s when it was recognized that there was need for greater flexibility to respond to the changing financial system. It was also felt that IFCI should directly access the capital markets for its funds needs. It is with this objective the constitution of IFCI was changed in 1993 from a statutory corporation to a company under the Indian Companies Act, 1956. Subsequently the name of the company was also changed to 'IFCI Limited ' with effect from October1999. IFCI has fulfilled its original mandate as a DFI by providing long term financial support to all segments of Indian Industry. It has also been chiefly instrumental in translating the government's development priorities into reality. Until the establishment of ICICI in 1956, IFCI remained solely responsible for implementation of the government's industrial policy initiatives. Its contribution to the modernization of Indian Industry, export promotion...
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...20 Role of Specialised Financial Institutions 20.1 Introduction In the previous lesson you have learnt that companies raise long-term and medium-term finance by issuing shares and debentures. Specialised financial institutions are also an important source of such finance. In this lesson, we shall discuss the role and functions of specialised financial institutions. 20.2 Objectives After studying this lesson, you will be able to :- l explain the need for and importance of specialised financial institutions; l identify the types of such institutions; l describe the functions and objectives of Industrial Finance Corporation of India (IFCI) and State Financial Corporations (SFCs); l discuss the role and objectives of Industrial Development Bank of India (IDBI); l state the functions of IDBI; l Recall the meaning of ‘investment trust’; 56 :: Business Studies l discuss the objectives and function of Unit Trust of India (U.T.I.) ; l Explain the objectives of Industrial Credit and Investment Corporation of India (ICICI) ; l describe the functions of ICICI ; 20.3 Need for and importance of Specialised Financial Institutions (SFIs) SFIs are institutions set up mainly by the government for providing medium and long-term financial assistance to industry. As these institutions provide developmental finance, that is, finance for investment in fixed assets, they are also known as ‘development banks’ or ‘development financial institutions’. These institutions receive...
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...Network in India 167 Commercial Banks: 26 Public sector banks, 21 Private sector Banks(14+7) 14 old private sector banks, 7 new private sector banks, 31 foreign banks, 82 regional rural banks, 4 local area banks Co-operative Banks: 1,721 urban cooperative banks, 31 state cooperative banks and 371 district central cooperative banks. Private Houses applied to RBI for Banking Licence: Reliance Capital, India Bulls, Religare, IL&FS, IDFC, IFCI and Aditya Birla Financial Services S P GARG 11th July 2011 21 Private sector Banks(14+7) 14 old private sector banks, 7 new private sector banks, 31 foreign banks, 82 regional rural banks, 4 local area banks Co-operative Banks: 1,721 urban cooperative banks, 31 state cooperative banks and 371 district central cooperative banks. Private Houses applied to RBI for Banking Licence: Reliance Capital, India Bulls, Religare, IL&FS, IDFC, IFCI and Aditya Birla Financial Services S P GARG 11th July...
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...Key Learnings from OB-2 course (Submitted by Rajat Dhingra, Roll No 26, PGPM-PT April 2014 batch) An organisation consists of individuals and each person has an inherent need to understand it because much of each individual's time is spent working in or around an organisation. Organisation Behaviour plays an important role in the management of business. It is that field of study which finds out the impact that individuals, groups and structure have on behaviour within an organisation and it applies that knowledge to make organisations work more effectively. Organisations are open social systems and have complex structures. Companies use various structures such as- functional, divisional, matrix to achieve the flexibility that they require in terms of goals being met, faster decision making, adjust rapidly to the changing environment and reducing conflicts. There is no one size fits all approach and the structure is decided by various factors such as the environment, resources available, competitive position etc. We have also learnt about the role of business environment in influencing strategy of the company. To what extent strategy depends on the environment and how strategy shapes the structure. We have analysed the McKinsey 7s model which is a tool that analyzes firm’s organisational design by looking at 7 key internal elements: strategy, structure, systems, shared values, style, staff and skills, in order to identify if they are effectively aligned and allow organisation...
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...Venture Financing in India A. Sahay* Abstract Innovation is stated to be the initiating force for a new venture but venture finance is the life blood for entrepreneurship. Innovation is the fuel for igniting the Entrepreneurial engine, Venture capital revs up the engine fast till it attains sustainable speed to change the gears from idea to entity, eventually reaching IPO stage. The paper starts with Research and Development Cess Act, 1986 and covers the development in the field till 2003 and presents an analysis of venture investments as well as future prospects . The history of Venture capital (VC), its advent in India, Characteristics of VC, Government guidelines on VC, Classification of VC in India, Types of V and their analysis has been dealt in the C paper. . Introduction Since Independence till early1990s, the Government has been playing the role of an entrepreneur as well. This was on account of the policy direction which propounded socialistic society and mixed economy. There was dearth of capital, infrastructure facilities and entrepreneurship in the country. During this period, the Government developed infrastructural base such as roads, railways, electricity, ports, banks, financial institutions, insurance etc through the public sector enterprises which were supposed to attain commanding heights of the economy. The environment thus created resulted in the people of India becoming job seekers and the Government itself became a dominant entrepreneur and job provider...
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...Contents i Financial system in India Sections 1.0 Financial system in India - Introduction - Evolution - Direction of household sector savings Chart 1.1 Tables 1.1 1.2 1.3 1.4 1.5 1.6 1.7 1.8 1.9 1.10 1.11 1.12 1.13 Household sector savings in financial and physical assets Proportion of gross household savings in financial assets Banks and financial institutions: Financial assets Indian financial system: Key financials Capital markets: Resources mobilised Stock market: At a glance Mutual funds vis-à-vis bank deposits Mutual funds: Sales and redemptions Mutual funds: Categorywise resourse mobilisation Incremental mutual fund collections to bank deposits Banks: Investments in shares NBFCs: Total assets and deposits NBFCs: Net owned funds vis-a-vis public deposits 10 10 11 11 12 13 14 14 14 15 15 15 16 Financial system in India: Overview 9 8 8 8 8 CRIS INFAC BANKING ANNUAL REVIEW: AUGUST 2002, 136 PAGES i Financial system in India 1.0 This chapter provides an overview of the financial system in India and its evolution, especially in the post-1991 reform period. The evolution of the Indian financial system can be viewed, broadly in two phases, pre-1991 and post-1991. In the post-1991 phase, a series of steps were taken to liberalise and develop the financial system. As a result of the reforms, the depth and width of the financial markets in India, in terms of the number of financial instruments and the number of active participants in the market, has improved. Subsequent...
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...Venture Financing in India A. Sahay* Abstract Innovation is stated to be the initiating force for a new venture but venture finance is the life blood for entrepreneurship. Innovation is the fuel for igniting the Entrepreneurial engine, Venture capital revs up the engine fast till it attains sustainable speed to change the gears from idea to entity, eventually reaching IPO stage. The paper starts with Research and Development Cess Act, 1986 and covers the development in the field till 2003 and presents an analysis of venture investments as well as future prospects . The history of Venture capital (VC), its advent in India, Characteristics of VC, Government guidelines on VC, Classification of VC in India, Types of V and their analysis has been dealt in the C paper. . Introduction Since Independence till early1990s, the Government has been playing the role of an entrepreneur as well. This was on account of the policy direction which propounded socialistic society and mixed economy. There was dearth of capital, infrastructure facilities and entrepreneurship in the country. During this period, the Government developed infrastructural base such as roads, railways, electricity, ports, banks, financial institutions, insurance etc through the public sector enterprises which were supposed to attain commanding heights of the economy. The environment thus created resulted in the people of India becoming job seekers and the Government itself became a dominant entrepreneur and job provider...
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...INDIAN FINANCIAL SYSTEM The economic development of a nation is reflected by the progress of the various economic units, broadly classified into corporate sector, government and household sector. A financial system or financial sector functions as an intermediary and facilitates the flow of funds from the areas of surplus to the deficit. It is a composition of various institutions, markets, regulations and laws, practices, money manager analyst, transactions and claims and liabilities. function of the financial system is the mobilisation of savings, their distribution for industrial investment and stimulating capital formation to accelerate the process of economic growth The features of a financial system are as follows 1. Financial system provides an ideal linkage between depositors and investors, thus encouraging both savings and investments. 2. Financial system facilitates expansion of financial markets over space and time. 3. Financial system promotes efficient allocation of financial resources for socially desirable and economically productive purposes. 4. Financial system influences both the quality and the pace of economic development. The Indian Financial system (financial markets) is broadly divided under two heads: (i) Indian Money Market (ii) Indian Capital Market The Indian money market is the market in which short-term funds are borrowed and lent. The money market does not deal in cash, or money but in bills of exchange, grade bills and treasury...
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...collecting cheques, bill of exchange, remittance money from one place to another place. In India, commercial banks are established under Companies Act, 1956. In 1969, 14 commercial banks were nationalised by Government of India. The policies regarding deposits, loans, rate of interest, etc. of these banks are controlled by the Central Bank. Type 3. Industrial Banks / Development Banks Industrial / Development banks collect cash by issuing shares & debentures and providing long-term loans to industries. The main objective of these banks is to provide long-term loans for expansion and modernisation of industries. In India such banks are established on a large scale after independence. They are Industrial Finance Corporation of India (IFCI), Industrial Credit and Investment Corporation of India (ICICI) and Industrial Development Bank of India (IDBI). Type 4. Land Mortgage / Land Development Banks Land Mortgage or Land Development banks are also known as Agricultural Banks because these are formed to finance agricultural sector. They also help in land development. In India, Government has come forward to assist these banks. The Government has guaranteed the debentures issued by such banks. There is a great risk...
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...The central bank of the country is the Reserve Bank of India (RBI). It was established in April 1935 with a share capital of Rs. 5 crores on the basis of the recommendations of the Hilton Young Commission. The share capital was divided into shares of Rs. 100 each fully paid which was entirely owned by private shareholders in the begining. The Government held shares of nominal value of Rs. 2,20,000. Reserve Bank of India was nationalised in the year 1949. The general superintendence and direction of the Bank is entrusted to Central Board of Directors of 20 members, the Governor and four Deputy Governors, one Government official from the Ministry of Finance, ten nominated Directors by the Government to give representation to important elements in the economic life of the country, and four nominated Directors by the Central Government to represent the four local Boards with the headquarters at Mumbai, Kolkata, Chennai and New Delhi. Local Boards consist of five members each Central Government appointed for a term of four years to represent territorial and economic interests and the interests of co-operative and indigenous banks. The Reserve Bank of India Act, 1934 was commenced on April 1, 1935. The Act, 1934 (II of 1934) provides the statutory basis of the functioning of the Bank. The Bank was constituted for the need of following: • To regulate the issue of banknotes • To maintain reserves with a view to securing monetary stability and • To operate the credit...
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...APPENDIX 1 Scrip Name | Amount Invested | Buy Price | Date of Purchase | Sell Price | Date of Sale | % Gain | Actual Gain | Amount retrieved | ARVIND MILLS | 5,000,000 | 8.15 | 10-Aug-01 | 8.85 | 20-Dec-01 | 8.59% | 429,448 | 5,429,448 | RAYMOND | 5,000,000 | 84.5 | 3-Sep-01 | 100.7 | 4-Mar-02 | 19.17% | 958,580 | 5,958,580 | HLL | 5,000,000 | 192.05 | 26-Sep-01 | 232.85 | 19-Mar-02 | 21.24% | 1,062,223 | 6,062,223 | TATA TEA | 5,000,000 | 126.6 | 27-Sep-01 | 170.9 | 27-Mar-02 | 34.99% | 1,749,605 | 6,749,605 | ICICI | 5,000,000 | 97.75 | 24-Oct-01 | 114 | 23-Apr-02 | 16.62% | 831,202 | 5,831,202 | APOLLO HOSPITAL | 5,000,000 | 81.95 | 25-Oct-01 | 160.45 | 24-Apr-02 | 95.79% | 4,789,506 | 9,789,506 | CHAMBAL FERTILIZER | 5,000,000 | 11.2 | 20-Nov-01 | 11.7 | 20-May-02 | 4.46% | 223,214 | 5,223,214 | MAHINDRA & MAHINDRA | 6,000,000 | 113.25 | 29-Jan-02 | 92.2 | 29-Jul-02 | -18.59% | -1,115,232 | 4,884,768 | HINDALCO | 6,000,000 | 691.95 | 30-Jan-02 | 626.75 | 29-Jul-02 | -9.42% | -565,359 | 5,434,641 | IPCL | 6,000,000 | 85 | 15-Feb-02 | 152.15 | 14-Aug-02 | 79.00% | 4,740,000 | 10,740,000 | ITC | 6,000,000 | 684.4 | 23-Aug-02 | 633.55 | 24-Feb-03 | -7.43% | -445,792 | 5,554,208 | RAYMOND | 6,000,000 | 104.5 | 19-Sep-02 | 89.95 | 19-Mar-03 | -13.92% | -835,407 | 5,164,593 | SESAGOA | 6,000,000 | 72.55 | 23-Oct-02 | 83.1 | 22-Apr-03 | 14.54% | 872,502 | 6,872,502 | SIEMENS | 6,000,000 | 262.6 | 27-Nov-02 | 355.7 | 27-May-03 | 35.45% | 2,127,190...
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...bManual on Financial and Banking Statistics LIST OF ABBREVIATIONS ACF AD ADB ADR AFS AGM AIRCSC Auto-Correlation Function Authorized Dealer Asian Development Bank American Depository Receipt Annual Financial Statement Annual General Meeting All India Rural Credit Survey Committee Additive Outliers Auto Regression Auto-Regressive Integrated Moving Average Available For Sale CBS CC CD CD Ratio CDBS CF CFRA CGRA CII CO CP Consolidated Banking Statistics Cash Credit Certificate of Deposit Credit Deposit Ratio Committee of Direction on Banking Statistics Company Finance Combined Finance and Revenue Accounts Currency and Gold Revaluation Account Confederation of Indian Industries Capital Outlay Commercial Paper Consumer Price Index Consumer Price Index for Industrial Workers Capital Receipts Capital to Risk Weighted Asset Ratio Cash Reserve Ratio Council of Scientific and Industrial Research Central Statistical Organisation Central Vigilance Commission Development Action Plan Department of Banking Operations and Development Department of Banking Supervision, RBI Department of Company Affairs, (Now known as Ministry of Companies Affairs, MCA) Government of India AO AR ARIMA AFS CPI ASSOCHAM Associated Chambers of Commerce and Industry of India ATM ATM BIS BOI BoP BPM5 Asynchronous Transfer Mode Automated Teller Machine Bank for International Settlements Bank of India Balance of Payments Balance of Payments Manual, 5th edition Balance of Payments Division, DESACS...
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...Ranking of Top 500 Companies Rank | Company | Rank | Company | Rank | Company | Rank | Company | Rank | Company | 1 | O N G C | 101 | Adani Power | 201 | Sundaram Finance | 301 | Kirloskar Oil | 401 | Himadri Chemical | 2 | TCS | 102 | Glenmark Pharma. | 202 | Rajesh Exports | 302 | Sh.Renuka Sugar | 402 | Orient Paper | 3 | Reliance Inds. | 103 | Shree Cement | 203 | Opto Circuits | 303 | H T Media | 403 | IVRCL | 4 | Coal India | 104 | M R P L | 204 | TTK Prestige | 304 | KSK Energy Ven. | 404 | Nitin Fire Prot. | 5 | ITC | 105 | Bajaj Finserv | 205 | Prestige Estates | 305 | Bombay Dyeing | 405 | SRF | 6 | St Bk of India | 106 | Wockhardt | 206 | CESC | 306 | BGR Energy Sys. | 406 | Unichem Labs. | 7 | HDFC Bank | 107 | Bhushan Steel | 207 | Madras Cement | 307 | City Union Bank | 407 | Magma Fincorp | 8 | Infosys | 108 | United Spirits | 208 | D B Corp | 308 | United Bank (I) | 408 | Elantas Beck | 9 | NTPC | 109 | Satyam Computer | 209 | Info Edg.(India) | 309 | Kennametal India | 409 | Hotel Leela Ven. | 10 | Bharti Airtel | 110 | GMR Infra. | 210 | Indiabulls Power | 310 | KPIT Infosys. | 410 | Styrolution ABS | 11 | ICICI Bank | 111 | Tech Mahindra | 211 | Voltas | 311 | Tuni Text. Mills | 411 | Gravita India | 12 | H D F C | 112 | Aditya Bir. Nuv. | 212 | Shri.City Union. | 312 | Wyeth | 412 | ICRA | 13 | Hind. Unilever | 113 | JP Power Ven. | 213 | Jindal Saw | 313 | Sadbhav Engg. | 413 | P I Inds. | 14 | Wipro | 114 | Piramal Enterp. |...
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...DECLARATION FORM This is to verify that I PRAGYA SAHU student Of SCHOOL OF ECONOMICS,DAVV INDORE has undergone training from “STOCK HOLDING CORPORATION OF INDIA LIMITED”. DURATION:- For 38 days (from 1st June to 8th July) in field of finance. During the training the student has abided by rules & regulation of our organization & his code of conduct were satisfactory. Detail of Reporting/ Authorized officer: Name of person: Sandeep Sharma Designation: General Manager Email Id : sandeep_sharma@stockholding.com Contact no.: 9425508941 Signature of reporting I hereby declare that this Project Report Entitled as Financial Planning submitted for the Project work is an original work done by Pragya sahu and it is submitted to Stock Holding Corporation of India Limited, Indore and will be submitted to SCHOOL OF ECONOMICS DAVV Indore. Except above not submitted to any University or Institute for the award of any Degree / Diploma / Certificate or published any time before. Date: ___21/08/2012_________ Place: __Indore__________ Pragya sahu ACKNOWLEDGEMENT “The completion of any project depends upon the Co-operation, coordination and combined efforts of several resources of knowledge, inspiration and energy”. My sincere thanks to Mr. Sandeep Sharma (Branch Manager) giving...
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...IJBEMR Volume 2, Issue 7 (July, 2011) ISSN 2229‐4848 The Journal of Sri Krishna Research & Educational Consortium INTERNATIONAL JOURNAL OF BUSINESS ECONOMICS AND MANAGEMENT RESEARCH Internationally Indexed & Listed Referred e-Journal VENTURE CAPITAL IN INDIA D. P. WARNE*; PINKI INSAN** *Chaudhary Devi Lal University, Sirsa, Haryana-125055. **Shah Satnam Ji P.G. Girls College, Sirsa, Haryana- 125055. ABSTRACT India is the largest democracy on the planet and second most populous country in the world. Its extraordinary history is intimately tied to its geography. A meeting ground between the East and the West, it has been invader’s paradise. In the last one and half decades, India has proved itself as a destination for Information Technology (IT) and Business Process Outsourcing (BPO). India is also fast emerging as a major center for cutting-edge research and development (R&D) projects for global multinational companies. Lot of activities are happening in India in various sectors such as IT, BPO, Knowledge Process Outsourcing (KPO), Semiconductors, Biotechnology, Textiles, Manufacturing, and Engineering recently. This study is an attempt to explore the trends and developments in Venture Capital financing in India through an in‐depth analysis of these investments over the last 5 years (2005‐2009). INTRODUCTION The Venture capital sector is the most vibrant industry in the financial market today. Venture capital is money...
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