mofs submission kshitij jindal a030
TRANSCRIPT
-
7/24/2019 MOFS Submission Kshitij Jindal A030
1/15
Session 1
What is Life Settlement Contract?
A life settlement is the sale of an existinglife insurancepolicy to a third party for more thanitscash surrender value,but less than its net death benefit. There are a number of reasons that
a policy owner may choose to sell his or her life insurance policy. The policy owner may no
longer need or want his or her policy, he or she may wish to purchase a different kind of life
insurance policy, or premium payments may no longer be affordable. Policy owners often
learn about settling their policies from afinancial planneror advisor, insurance broker,
attorney, friends or family, or estate planning presentations.
Life settlements are usually only done when the insured person doesn't have a known life
threatening illness. They are often done with !key individual! insurance policies held by
companies on executives who no longer work there" the company has a chance to cash out ona policy that was previously illi#uid. $ometimes people outgrow their need for a specific life
insurance policy, and a life settlement may offer the chance to gain more than the
policy's cash surrender value.
What happened in ABN AMRO that gave it scale?
A%& Amro %ank is took over the consumer banking business of %ank of America as part of a
purchase agreement covering ac#uisition of this line of business in ndia, Taiwan and
$ingapore.
The consumer banking business of %ank of America ac#uired by A%& Amro bank included
consumer lending, deposit mobilisation, auto finance and mortgage activities. The ac#uisition
was a part of a ($) *++ million deal signed between the two banks for purchasing the
consumer banking business by A%&Amro %ank in these three countries
Octopus Cards
The ctopus card is a reusable contactlessstored valuesmart cardfor making electronic
paymentsin online or offline systems in -ong ong. Launched in $eptember /001 to collect
fares for the territory's mass transit system, the ctopus card system is the second contactless
smart cardsystem in the world, after the orean(pass, and has since grown into a widely
used payment system for all public transport in -ong ong, leading to the development
of yster 2ardin London.
The ctopus card has also grown to be used for payment in many retail shops in -ong ong,
from stores, supermarkets, fastfood restaurants, onstreetparking meters, car parks, to
otherpointofsaleapplications such as stations and vending machines.
What are Mil Cards?
Amulin collaboration with $tate %ank of ndia 3$%4 launched Amul 5ilk 2ard, a prepaid
smart 2ard, at 5other 6airyin 7andhinagar. The card can be used to purchase products from
Amul parlours.
The card, aimed at facilitating customers with convenient and hasslefree mode of payment,
https://en.wikipedia.org/wiki/Life_insurancehttps://en.wikipedia.org/wiki/Life_insurancehttps://en.wikipedia.org/wiki/Life_insurancehttps://en.wikipedia.org/wiki/Cash_surrender_valuehttps://en.wikipedia.org/wiki/Cash_surrender_valuehttps://en.wikipedia.org/wiki/Cash_surrender_valuehttps://en.wikipedia.org/wiki/Financial_plannerhttps://en.wikipedia.org/wiki/Financial_plannerhttp://www.investopedia.com/video/play/life-insurance/http://www.investopedia.com/video/play/life-insurance/http://www.investopedia.com/video/play/life-insurance/http://www.investopedia.com/terms/c/cashsurrendervalue.asphttps://en.wikipedia.org/wiki/Contactless_paymenthttps://en.wikipedia.org/wiki/Smart_cardhttps://en.wikipedia.org/wiki/Smart_cardhttps://en.wikipedia.org/wiki/Electronic_moneyhttps://en.wikipedia.org/wiki/Electronic_moneyhttps://en.wikipedia.org/wiki/Hong_Konghttps://en.wikipedia.org/wiki/Mass_transit_systemhttps://en.wikipedia.org/wiki/Contactless_smart_cardhttps://en.wikipedia.org/wiki/Contactless_smart_cardhttps://en.wikipedia.org/wiki/Upasshttps://en.wikipedia.org/wiki/Upasshttps://en.wikipedia.org/wiki/Transport_in_Hong_Konghttps://en.wikipedia.org/wiki/Oyster_Cardhttps://en.wikipedia.org/wiki/Oyster_Cardhttps://en.wikipedia.org/wiki/Londonhttps://en.wikipedia.org/wiki/Fast-food_restauranthttps://en.wikipedia.org/wiki/Fast-food_restauranthttps://en.wikipedia.org/wiki/Parking_lothttps://en.wikipedia.org/wiki/Car_parkhttps://en.wikipedia.org/wiki/Car_parkhttps://en.wikipedia.org/wiki/Point_of_salehttps://en.wikipedia.org/wiki/Vending_machinehttp://www.business-standard.com/search?type=news&q=Amulhttp://www.business-standard.com/search?type=news&q=Amulhttp://www.business-standard.com/search?type=news&q=Mother+Dairyhttp://www.business-standard.com/search?type=news&q=Mother+Dairyhttps://en.wikipedia.org/wiki/Cash_surrender_valuehttps://en.wikipedia.org/wiki/Financial_plannerhttp://www.investopedia.com/video/play/life-insurance/http://www.investopedia.com/video/play/life-insurance/http://www.investopedia.com/terms/c/cashsurrendervalue.asphttps://en.wikipedia.org/wiki/Contactless_paymenthttps://en.wikipedia.org/wiki/Smart_cardhttps://en.wikipedia.org/wiki/Electronic_moneyhttps://en.wikipedia.org/wiki/Electronic_moneyhttps://en.wikipedia.org/wiki/Hong_Konghttps://en.wikipedia.org/wiki/Mass_transit_systemhttps://en.wikipedia.org/wiki/Contactless_smart_cardhttps://en.wikipedia.org/wiki/Contactless_smart_cardhttps://en.wikipedia.org/wiki/Upasshttps://en.wikipedia.org/wiki/Transport_in_Hong_Konghttps://en.wikipedia.org/wiki/Oyster_Cardhttps://en.wikipedia.org/wiki/Londonhttps://en.wikipedia.org/wiki/Fast-food_restauranthttps://en.wikipedia.org/wiki/Parking_lothttps://en.wikipedia.org/wiki/Car_parkhttps://en.wikipedia.org/wiki/Point_of_salehttps://en.wikipedia.org/wiki/Vending_machinehttp://www.business-standard.com/search?type=news&q=Amulhttp://www.business-standard.com/search?type=news&q=Mother+Dairyhttps://en.wikipedia.org/wiki/Life_insurance -
7/24/2019 MOFS Submission Kshitij Jindal A030
2/15
will be available to customers for free. They can get the topup on their card at all Amul
parlours and customers will get an $5$alert whenever the transaction is made using this
card. The minimum recharge amount is 8s /++ while the maximum recharge amount has
been fixed at 8s 9+++.
The service is presently being launched at /+ Amul parlours in city and the Anand
head#uartered dairy ma:or plans to expand the service to /++ parlours in the coming three
months before expanding it to other Amul parlours across the state.
!edge "unds # A$" Regulations
$;% has allowed hedge fundlike strategies to launch operations in ndia under alternative
investment fund 3A
-
7/24/2019 MOFS Submission Kshitij Jindal A030
3/15
ctober *+//
What is the highest the call mone' maret has gone in the last () 'ears?
2all rates reached a high of E+F in /00E where today it stands at GF.
What is the total num&er of demat accounts in $ndia? What are its implications?
As of
-
7/24/2019 MOFS Submission Kshitij Jindal A030
4/15
discovery mechanism, introduced premarket auction sessions and even extended market
timings. To promote retail investor interest, he also hiked the P investment limit to 8s *
lakh. Tighter disclosure norms for greater corporate transparency and dealing with corporate
fraud with an iron fist became a hallmark of %have's tenure.
Mis*selling+ Sumit Bose report
The 8eport seems to have identified some core areas of concern, and made recommendations
addressing each of them. These include@
8egulatory arbitrage
The key recommendation of the 2ommittee is that regulation of financial products must be
seen in terms of the product function and not form. These functions are nsurance, nvestment
and Annuity. The lead regulator, according to function, should fix the rules. n bundled
products, the rules of each component should be set by the lead regulator.
-
7/24/2019 MOFS Submission Kshitij Jindal A030
5/15
8egulators should create a common distributor 3including employees of corporate agents4
regulation. ;ach regulator may add rules specific to products regulated by them. 8egulators
should create a single registry of all distributors. Anybody facing the customer should be
registered. The registry should identify each individual distributor with a uni#ue number. The
registry should have the past history of regulator actions and awards for each individual
distributor. $trict penalties should be defined for distributors who are not registered. These
steps will enable tracking of distributor actions across products and improve enforcement
actions.
ORO,
ne 8ank, ne Pension 38P4 or !same pension, for same rank, for same length of service,
irrespective of the date of retirement! used to be the basis for determining the pension and
benefits of ndian Armed
-
7/24/2019 MOFS Submission Kshitij Jindal A030
6/15
art funds and investor interest therein continues to grow, the number of art funds of funds are
expected to significantly increase.
Which countries follo% principle*&ased regulations?
;urope
0iro &an
The basic concept is that of a banking system not based on che#ues, but rather by direct
transfer between accounts. f the accounting office is centralised, then transfers between
accounts can happen simultaneously. 5oney could be paid in or withdrawn from the system
at any post office, and later connections to the commercial banking systems were established,
often by the convenience of the local bank opening its own account at the Postgiro.
n the banking model, che#ues are written by the remitter and then handed or posted to the
payee who must then visit a bank or post the che#ue to his bank. The che#ue must then
becleared, a complex process by which che#ues are sorted once, posted to a central clearing,
sorted again, and then posted back to the paying branch where the che#ue is finally checked
and then paid.
Servuction
The 2lient nterface@ refers to innovation in the interface between the service provider and its
customers.
2lients are often highly involved in service production, and changes in the way in which they
play their roles and are related to suppliers can be ma:or innovations for many services.
;xamples might include the greater involvement of selfservice for clients visiting service
organisations.
There is a servuction?.
2 Baning
The Television %anking enables customers to conduct banking business with television and
TJ settop box as the terminal and remote control for the operational tool based on the cable
TJ broadband network. 2ompared with online banking, television banking is closer to the
life of everyone. 2ustomers of television banking do not need to purchase a computer or bear
the internet !:am!" compared with telephone banking, television banking has a more direct
trading interface and allinclusive information display. Television banking enables customers
to complete banking transactions through the television, have access to financial products and
industry information, and experience a more fashionable and convenient wealth management
approach. -$%2 was the bank leading the revolution, offering the service to customers with
digital %$ky% television. t was run in con:unction with pen, a service provider
BCSB$
%anking 2ode and standard %oards of ndia oversees the compliance with the code of banks
commitments towards the customers. t is an independent and autonomous body with 8%
extending financial support to it.
https://en.wikipedia.org/wiki/Chequehttps://en.wikipedia.org/wiki/Centralisedhttps://en.wikipedia.org/wiki/Clearing_(finance)https://en.wikipedia.org/wiki/Clearing_(finance)https://en.wikipedia.org/wiki/Chequehttps://en.wikipedia.org/wiki/Centralisedhttps://en.wikipedia.org/wiki/Clearing_(finance) -
7/24/2019 MOFS Submission Kshitij Jindal A030
7/15
3$C0C
6eposits in banks are insured by 6eposit nsurance and 2redit 7uarantee 2orporation
362724. All commercial banks including branches of foreign banks functioning in ndia,
local area banks and regional rural banks are insured by the 6272. ;ach depositor in a bank
is insured upto a maximum of /, ++,+++ 38upees ne Lakh4 for both principal and interestamount held by him. The deposits kept in different branches of a bank are aggregated for the
purpose of insurance cover and a maximum amount upto 8upees one lakh is paid. 6eposit
insurance premium is borne entirely by the insured bank.
Who is 2ishnu 3uesar ?
n *++/, 8omesh $obti, 2; at A%& Amro was supposed to :oin 6evelopment 2redit
%ank.Jishnu 6euskar, managing director of A%& Amro $ecurities, was to take over as
$obti's successor. 8% did not approve this as he was part of A& 7rindlays when it had lend
money to -arshal 5ehta. After 8%Ds decision the news which was spread in the media was,
8omesh $obti has reviewed his decision on the back of he being given an additional chargeas the head of consumer business in $ingapore, Pakistan, ndonesia, (A; and 5alaysia.
Session 4
0erman !ousing
The 7erman system is deliberately structured to encourage renting rather than owning.
Tenants en:oy strong rights and, provided they pay their rent, are virtually immune from
eviction and even from significant rent increases.
Charles ,on5i
2harles Pon=i, 35arch 9, /EE* B Manuary /E, /0C04 was an talian businessman and con artist
in the (.$. and 2anada. -is aliases include 2harles Pon=i, 2arlo and 2harles P. %ianchi. %orn
in taly, he became known in the early /0*+s as a swindler in &orth America for his money
making scheme. -e promised clients a G+F profit within CG days, or /++F profit within 0+
days, by buying discounted postal reply coupons in other countries and redeeming them at
face value in the (nited $tates as a form of arbitrage. n reality, Pon=i was paying early
investors using the investments of later investors, a practice known as !robbing Peter to pay
Paul.! Khile this swindle predated Pon=i by several years, it became so identified with him
that it now bears his namesake. -is scheme ran for over a year before it collapsed, costing his
!investors! )*+ million.Bernie Madoff
%ernard 5adoff is an American swindler convicted of fraud and a former
stockbroker, investment advisor, and financier. -e is the former nonexecutive chairman of
the&A$6ANstock market and the admitted operator of aPon=i schemethat is considered to
be the largest financial fraud in (.$. history.
n 5adoff's case, things began to deteriorate after clients re#uested a total of )1 billion back
in returns. (nfortunately for 5adoff, he only had )*++ million to )9++ million left to give.
Another reason 5adoff managed to fly under the radar for so long 3despite multiple reports tothe $;2 about suspicions of a Pon=i scheme4, is because 5adoff was a wellversed and
https://en.wikipedia.org/wiki/Stockbrokerhttps://en.wikipedia.org/wiki/Investment_advisorhttps://en.wikipedia.org/wiki/Financierhttps://en.wikipedia.org/wiki/NASDAQhttps://en.wikipedia.org/wiki/Ponzi_schemehttps://en.wikipedia.org/wiki/Ponzi_schemehttps://en.wikipedia.org/wiki/Stockbrokerhttps://en.wikipedia.org/wiki/Investment_advisorhttps://en.wikipedia.org/wiki/Financierhttps://en.wikipedia.org/wiki/NASDAQhttps://en.wikipedia.org/wiki/Ponzi_scheme -
7/24/2019 MOFS Submission Kshitij Jindal A030
8/15
active member of the financial industry. -e started his own market maker firm in /0+ and
helped launch the &A$6AN stock market. -e sat on the board of &ational Association of
$ecurities 6ealers and advised the $ecurities and ;xchange 2ommission on trading
securities. t was easy to believe this 1+yearold industry veteran knew exactly what he was
doing.
5adoff really only made off with )*+ billion, even though on paper he cheated clients out of
)G billion, according to 2&& 5oney.
Michael Milan
As an executive at investment bank 6rexel %urnham Lambert nc. during the /0E+s who used
highyield :unk bonds for corporate financing and mergers and ac#uisitions. 5ichael 5ilken
amassed an enormous personal fortune, but in /0E0 he was indicted by a federal grand :ury
and eventually spent nearly two years in prison after pleading guilty to charges of securities
fraud. Khile he is credited with founding the highyield debt market, he was banned for life
from the securities industry.
&icknamed !The Munk %ond ing! in the /0E+s, 5ilken earned between )*++ million and
)GG+ million a year at the height of his success.
-
7/24/2019 MOFS Submission Kshitij Jindal A030
9/15
receipts, which his firm brokered in !ready forward! transactions between banks. 5ehta was
convicted by the %ombay -igh 2ourtand$upreme 2ourt of ndiafor his part in a financial
scandal valued atC0.00 billion 3($)1G+ million4 which took place on the%ombay $tock
;xchange 3%$;4. The scandal exposed the loopholes in the %ombay $tock ;xchange
3%$;4transaction system and $;% further introduced new rules to cover those loophole.
Currenc' Chest
2urrency chests are select branches of scheduled banks, which are authorised by the 8% to
facilitate distribution of notes and coins. n these branches, notes and coins are stocked on
behalf of the 8%. These currency chests are expected to distribute notes and coins to other
bank branches in their area of operation.
Session 7
$s $ndia a full' capital converti&le countr'?
A currency is fully convertible, when there are no current account or capital account
restrictions for free movement of funds into the country and out of the country. As there are
lot of restrictions for free movement of funds from ndia and also into the country, ndian
8upee is not fully convertible.
ndia is still a developing economy and has lot of inherent weaknesses. Ke don't have
surplus current account, meaning our exports and services earnings and other invisible
exports are far less than imports. This always leads to pressure on ndian 8upee.
Rate of reasur'
ndian Treasury %ills is #uoted at 1.+F. nterbank rate is averaged at 1.GEF.
3oes CRR mone' generate an' mone'?
(nder 288 a certain percentage of the total bank deposits has to be kept in the current
account with 8% which means banks do not have access to that much amount for any
economic activity or commercial activity. %anks can't lend the money to corporates or
individual borrowers, banks can't use that money for investment purposes. $o, that 288
remains in current account and banks donDt earn anything on that.
Session 8
.9empt: .9empt: .9empt
nvestment made under ;xempt, ;xempt, ;xempt 3;;;4 is one of the best tax saving
instrument.
-
7/24/2019 MOFS Submission Kshitij Jindal A030
10/15
;;T, the first ; indicates that the original investment is exempt from tax. The second ;
denotes that returns or income or accumulation on the investment are not taxed. -ere T,
indicates that any maturity amount or withdrawals are sub:ect to tax depending on the tax
slab of the individual. nvestments which fall under ;;T are (nit Linked Pension Plans,
Pension plans, &ational pension $chemes
.9empt: a9ed: .9empt
%ank Tax saving fixed deposits and &$2s are best example for this, where tax is exempt on
amount you invest as
-
7/24/2019 MOFS Submission Kshitij Jindal A030
11/15
Portfolio management is all about strengths, weaknesses, opportunities and threats in the
choice of debt vs. e#uity, domestic vs. international, growth vs. safety, and many other
tradeoffs encountered in the attempt to maximi=e return at a given appetite for risk.
Types of P5$@
There are two types of portfolio management services 3P5$4@
6iscretionary P5$ and
&ondiscretionary P5$
n discretionary portfolio management, the portfolio manager individually and independently
manages the funds of each client in accordance with the needs of the client.
%ut in nondiscretionary portfolio management, the portfolio manager manages the funds in
accordance with the directions of the client. The portfolio manager cannot make buysell
decisions at his own discretion" he has to refer to the client for every transaction.
3istri&ution of Savings in $ndia
nstrument $avings proportion
8eal estate GEF
6eposit /GF
7old /*F
nsurance 0F
PP< CF
2ash 9F
;#uity 9F
Session