MBFS Unit 1
MBFS Unit 1
MBFS Unit 1
STRUCTURES
1. Regulatory Bodies
(RBI/SEBI/IRDA/PFRDA)
2. Financial Intermediaries
3. Financial Markets
4. Financial Assets / Instruments
5. Financial Services
Indian Financial System
Indian Financial System An Overview
ORGANISATION Financial System consists of
Furnishing of information
Furnishing of further information
Registration of Merchant
bankers
Consideration of application
Applicant must be a body corporate
the applicant has the necessary infrastructure
like adequate office space, equipments, and
manpower to effectively discharge his activities;
the applicant has in his employment minimum
of two persons who have the experience to
conduct the business of merchant banker;
a person directly or indirectly connected with
the applicant has not been granted registration
by the Board.
Registration of Merchant bankers
the applicant fulfils the capital adequacy
requirement specified in regulation 7;
the applicant, his partner, director or principal
officer is not involved in any litigation connected
with the securities market which has an adverse
bearing on the business of the applicant;
the applicant, his director, partner or principal
officer has not at any time been convicted for any
offence involving moral turpitude or has been found
guilty of any economic offence;
the applicant has the professional qualification
from an institution recognised by the Government in
finance, law or business management;
the applicant is a fit and proper person;]
grant of certificate to the applicant is in the interest
of investors.
Registration of Merchant
bankers
Capital adequacy requirement minimum networth
required
Category Minimum Amount
Category I Rs. 5, 00, 00, 000
Category II Rs. 50, 00, 000
Category III Rs. 20, 00, 000
Category IV Nil
(1) Every merchant banker shall keep and maintain the following
books of account, records and documents namely :
(a) a copy of balance sheet as at the end of the each accounting
period;
(b) a copy of profit and loss account for that period;
(c) a copy of the auditors report on the accounts for that period;
(d) a statement of financial position.
(2) Every merchant banker shall intimate to the Board the place
where the books of account, records and documents are maintained.
(3) every merchant banker shall, after the end of each accounting
period furnish to the Board copies of the balance sheet, profit and
loss account and such other documents for any other preceding five
accounting years when required by the Board.
General Obligations
3. Submission of half-yearly results.
Every merchant banker shall furnish to the Board half-yearly
unaudited financial results when required by the Board with a
view to monitor the capital adequacy of the merchant banker.