top of page
MMPF-006: Management of Financial Services

MMPF-006: Management of Financial Services

IGNOU Solved Assignment Solution for 2023-24

If you are looking for MMPF-006 IGNOU Solved Assignment solution for the subject Management of Financial Services, you have come to the right place. MMPF-006 solution on this page applies to 2023-24 session students studying in MBA, MBAFM, PGDIFM, PGDISM courses of IGNOU.

Looking to download all solved assignment PDFs for your course together?

MMPF-006 Solved Assignment Solution by Gyaniversity

Assignment Solution

Assignment Code: MMPF-006/TMA/ JULY/2023

Course Code: MMPF-006

Assignment Name: Management of Financial Services

Year: 2023

Verification Status: Verified by Professor


Q1) Select any Financial Institution of your choice and try to find out the various financial services that are being offered by that Institution. Write a detail note on your Findings.

Ans) The State Bank of India (SBI) is one of the largest and most prominent banks in India, offering a wide range of financial services to individuals, businesses, and organizations.


Deposit Services

  1. Savings Accounts: SBI offers diverse types of savings accounts, including basic savings accounts, salary accounts, and premium savings accounts, each with distinctive features and benefits.

  2. Fixed Deposits (FDs): SBI provides fixed deposit options with varying tenures and competitive interest rates.

  3. Recurring Deposits: Customers can open recurring deposit accounts to save regularly and earn interest.


Loan Services:

  1. Home Loans: SBI offers home loans for the purchase of residential properties, construction, and renovations, with flexible repayment options.

  2. Personal Loans: Personal loans are available for various purposes, such as medical emergencies, education, weddings, and more.

  3. Car Loans: SBI provides financing for the purchase of new and used cars.

  4. Education Loans: Educational loans assist students in pursuing higher education in India and abroad.

  5. Business Loans: SBI offers loans to businesses for working capital, expansion, and infrastructure development.


Investment and Wealth Management Services

  1. Mutual Funds: SBI offers a range of mutual fund products for various investment objectives.

  2. Demat and Trading Accounts: Customers can open demat and trading accounts for buying and selling stocks and securities.

  3. SBI Wealth: SBI Wealth offers wealth management and advisory services to high-net-worth individuals.

National Pension System (NPS): SBI facilitates NPS accounts for retirement planning.


Insurance Services:

  1. Life Insurance: SBI Life Insurance, a joint venture with a leading insurer, offers life insurance products.

  2. General Insurance: SBI General Insurance provides various insurance products, including health, motor, home, and travel insurance.


Digital and Mobile Banking

SBI offers online and mobile banking services, allowing customers to perform transactions, pay bills, check balances, and more from their smartphones and computers.


International Banking

SBI caters to the international banking needs of customers, including foreign currency exchange, international remittances, and export-import services.


Credit and Debit Cards

SBI offers a range of credit and debit card options, each with its own set of benefits and features.


Government and Public Sector Banking

SBI provides banking services to various government and public sector organizations, including salary accounts and treasury services.


Corporate and Business Banking

SBI offers a comprehensive suite of banking services tailored to the needs of businesses, including corporate loans, trade finance, and cash management services.


Safe Deposit Lockers

SBI provides safe deposit lockers to customers for secure storage of valuables and important documents.


Online Tax Payments and Services

Customers can use SBI's online platform to pay taxes, including income tax, and avail of other tax-related services.


Q2) Discuss the major Provisions relating to Stockbrokers and Sub-brokers in the Securities Contracts (Regulation) Act, 1956.

Ans) Stockbrokers are members of individual stock exchanges and must follow the Securities Contracts (Regulation) Act of 1956, the SEBI Act of 1992, and the SEBI Rules and Regulations of 1992.The Securities Contracts (Regulation) Act of 1956 lists the most important rules for stockbrokers and sub-brokers as follows:

a) A "stockbroker" is a member of a stock exchange.

b) A "sub-broker" is not a member of a stock exchange but works for a stockbroker as an agent or in some other way to help investors buy, sell, or trade securities through such stockbrokers.


The central government makes rules about:

  1. The qualifications of the members.

  2. How contracts should be made and upheld between members.

  3. The keeping of accounts by members and their review by chartered accountants whenever the central government asks for such a review.

  4. Every stock exchange that is recognised and every member must keep records and books of accounts for five years. The central government decides on the specific documents after talking with the stock exchange. The securities and exchange board of India can look at these books of accounts and other documents at any reasonable time. (SEBI).


The stock exchange where the member is registered has the power to:

  1. Limit the member's right to vote.

  2. End any contract the member has made with another party about stock transactions.

  3. Decide how much brokerage and other fees will be.

  4. The limits on how much each member can trade cases.

  5. Can impose a fine, expulsion from the club, suspension from the club for a certain amount of time, or any other similar punishment that does not involve paying money.


As per the SEBI Act, 1992, and the SEBI Rules and Regulations Act, 1992:

  1. Every stockbroker and sub-broker must register with SEBI and follow the rules on their registration certificate.

  2. If a broker fails to issue contract notes in the form and manner required by the stock exchange where he is a member, he could be fined up to five times the amount for which the contract note was supposed to be issued.

  3. Fails to deliver any security or pay the investor the amount owed in the way and within the time specified in the regulations, he will have to pay a fine of one lakh rupees for each day of the failure or one crore rupees, whichever is less.


    (c) If a broker charge more in brokerage than what is allowed by the rules, he will have to pay a fine of one lakh rupees or five times the amount of brokerage he charged on top of what was allowed, whichever is higher.


If an insider:

  1. Buys or sells securities of a company listed on a stock exchange based on price-sensitive information that has not been made public.

  2. Tells someone about price-sensitive information that has not been made public, even if that person did not ask for it, unless it is needed in the normal course of business or by law.

  3. Advises or helps someone else buy or sell securities of a company listed.


d) If a person who is required by this Act or any rules or regulations made under it fails to.

  1. Disclose the total number of shares he owns in a company before he buys any shares of that company.

  2. Make a public announcement that he wants to buy shares at a certain price.

  3. Make a public offer by sending a letter of offer to the shareholders of the company in question.

  4. Pay the shareholders who sold their shares he will have to pay a fine of either Rs. 25 crore or three times the amount of money he made from the failure, whichever is higher.


e) Anyone who trades in securities in a dishonest or unfair way will have to pay a fine of either 25 crore rupees or three times the amount of money they made through these practises, whichever is higher.


f) Anyone who does not follow any part of this Act, the rules or regulations made under it, or the directions given by the SEBI for which there is not a separate penalty will have to pay a fine of up to one crore rupees.


Q3) What are Corporate Advisory Services? Explain the major Corporate Advisory Services provided by any such agency of your choice.

Ans) Corporate advisory services, also known as investment banking advisory services, are financial services provided by specialized agencies or firms to corporations, businesses, and organizations. These services aim to assist clients in making informed financial and strategic decisions to achieve their business objectives, optimize their financial structure, and enhance shareholder value. Corporate advisory services encompass a wide range of activities, and the specific services offered by an agency can vary.


  1. Mergers and Acquisitions (M&A) Advisory: M&A advisory services help companies navigate the process of buying, selling, or merging with other companies. Services include target identification, due diligence, valuation, deal structuring, negotiation, and post-merger integration planning.

  2. Capital Raising and Financing: This involves assisting clients in raising capital through various means, including debt and equity offerings. Services may include helping clients issue bonds, secure loans, arrange credit facilities, or access equity markets through initial public offerings (IPOs) or private placements.

  3. Financial Restructuring and Debt Advisory: Agencies help clients assess and manage their debt obligations and financial structure. Services may include debt refinancing, restructuring existing debt, and advising on capital allocation to optimize the balance between debt and equity.

  4. Strategic Advisory: Strategic advisory services focus on helping clients develop and implement strategies to achieve their business goals. This may involve market analysis, business plan development, expansion strategies, and competitive positioning.

  5. Valuation Services: Valuation services help clients determine the fair value of their assets, businesses, or intellectual property. Valuations are essential for financial reporting, transactions, tax planning, and other purposes.

  6. Corporate Governance and Shareholder Relations: Agencies provide guidance on corporate governance best practices, compliance with regulatory requirements, and enhancing relationships with shareholders. They may also assist in proxy advisory and shareholder engagement.

  7. Restructuring and Turnaround Advisory: In cases of financial distress or underperformance, advisory firms assist clients in devising and implementing turnaround strategies. This can include cost-cutting, asset sales, and operational improvements.

  8. Risk Management and Hedging: Risk management advisory services help clients identify, assess, and manage financial risks, including interest rate risk, currency risk, and commodity price risk. Firms may also assist in developing hedging strategies to mitigate exposure.

  9. Transaction Support Services: Agencies provide support in the execution of various transactions, including transaction due diligence, document preparation, and regulatory compliance.

  10. Private Equity and Venture Capital Advisory: Firms assist clients in accessing private equity or venture capital funding, including identifying potential investors, structuring deals, and negotiating terms.

  11. Cross-Border and International Advisory: For businesses with global operations or expansion plans, agencies offer advice on international markets, regulations, and cross-border transactions.


Q4) Discuss the Salient Features of SEBI (Venture Capital Funds) Regulations, 1996.

Ans) The SEBI oversees regulating the Indian capital market, which includes the venture capital market. In 1996, the SEBI put out Venture Capital Regulations for the first time. The SEBI (Venture Capital Funds) Regulations, 1996, are what these rules are called.


The most important parts of these rules:

a) Definition of VCF: In section 2(m) of the Regulation, "VCF" is defined as "a fund established in the form of a trust or a company, including a body corporate, and registered under these regulations that:

  1. It has a dedicated pool of capital.

  2. Raises money in a way that is specified in the regulations.

  3. Invests in a way that is specified in the regulations.


b) Definition of Venture Capital Undertaking: Section 2(n) of the Regulations defines a "venture capital undertaking" (VCU) as a "domestic company whose shares are not listed on a recognised stock exchange in India and whose business does not include activities or sectors listed in the negative list by the Board with the approval of the Central Government by notification in the Official Gazette in this behalf."


c) Form A and non-refundable application fees must be sent to the Board with a request for a certificate. The Board can give the Form B certificate of incorporation.


d) Obligations of Venture Capital fund

  1. Venture capital fund shall not do anything other than what venture capital fund is supposed to do.

  2. When making an investment, venture capital must say what its plan is for the money.

  3. VCF must tell people how long the fund will be around.

  4. VCF's units cannot be sold on any recognised stock exchange until three years have passed since the day VCF gave them out.

  5. VCF cannot ask the public to subscribe to its units, so it can only get money from private placements of the units.

  6. VCF will sign the placement memorandum and subscription agreement, which spells out the terms and conditions for getting money from investors.

  7. Along with the money, a copy of the placement memorandum and subscription agreement will be given to the board.

  8. VCF must keep its books of accounts, records, and other important documents for 8 years.


e) Investment in Venture Capital

  1. Venture Capital: Through the sale of units, the fund can get money from Indians who live abroad or Indians who do not live in India.

  2. Any investor who wants to put in less than Rs. 5 lakhs must be an employee, principal officer, or director of the venture capital fund or an employee of the fund manager or asset management company.

  3. The venture capital fund must put at least Rs.5 crores into each new scheme or fund that is set up.


f) Winding up: The SEBI Board should be told when a scheme is ending. Scheme of VCF can be closed if any of the following happen:

  1. In Case of Trust: The plan described in the placement memorandum has run out of time. In the opinion of the trustees and for the benefit of the investors, the scheme should be closed. Seventy-five percent of the investors in the scheme vote that the scheme should be closed.

  2. In Case of Company: According to the rules in the Companies Act of 1956, the business was closed.

  3. In Case of a Body Corporate: Closed according to the law that created it.


g) Investment Restrictions: One cannot put more than 25% of the corpus in any one VCU. RBI and SEBI have rules about how to invest in securities of foreign companies. No investments in companies that are related.


h) Investment Structure

  1. At least 66.67% of funds that can invested must put into VCUs' unlisted equity shares or equity-linked instruments.

  2. Not more than 33.3% of funds that can invested should put into the following:

  • Subscription to VCU's proposed initial public offering.

  • A VCU's debt instrument in which VCF already has a stake.

  • Preferential allocation of equity shares of publicly traded companies with a lock-in period of one year.

  • Listing of equity shares or instruments linked to equity of a financially weak or sick company.

  • Vehicle with a specific use (SPV).


Q5) Find out about the various New Age Banking Technologies and their Applications in Financial Services. Discuss about any one of those technologies in detail.

Ans) New age banking technologies have disrupted traditional financial services and are reshaping the way banks operate, interact with customers, and deliver their services.


Neo Banks

Neo banks, also known as digital banks or challenger banks, are fully digital, branchless financial institutions that offer a range of banking services exclusively through digital channels.

Applications of Neo Banks:

  1. Digital-First Customer Experience: Neo banks provide seamless and user-friendly mobile apps and websites for account management, payments, and customer support.

  2. Lower Costs: By eliminating physical branches and automating many processes, neo banks often offer lower fees and better interest rates to customers.

  3. Specialized Services: Some neo banks specialize in serving specific niches, such as small businesses or international travellers, offering tailored solutions.

  4. Quick Account Setup: Neo banks typically allow customers to open accounts quickly and without the need for extensive paperwork.

  5. Data-Driven Insights: They use data analytics to offer personalized financial advice and insights to customers.


Open Banking

Open banking is a regulatory framework that allows customers to share their financial data securely with third-party providers through Application Programming Interfaces (APIs). It promotes competition and innovation in the banking sector.

Applications of Open Banking:

  1. Account Aggregation: Customers can view their accounts from multiple banks in one place, providing a holistic financial overview.

  2. Payment Initiation: Third-party providers can initiate payments from a customer's account with their consent, enabling various payment services.

  3. Financial Management Apps: Fintech apps and services can access transaction data to offer budgeting, savings, and investment advice.

  4. Enhanced Credit Scoring: Lenders can access a broader range of financial data to make more accurate credit assessments.

  5. Customized Services: Banks and fintech companies can create tailored products and services based on customer data.


Cloud Banking

Cloud banking refers to the use of cloud computing technology to host banking applications, data, and infrastructure. It offers scalability, flexibility, and cost-efficiency.

Applications of Cloud Banking:

  1. Cost Savings: Banks can reduce IT infrastructure and maintenance costs by leveraging cloud services.

  2. Scalability: Cloud banking allows banks to scale their operations up or down rapidly to meet changing demand.

  3. Disaster Recovery: Cloud providers offer robust disaster recovery and data backup solutions, ensuring data security and continuity.

  4. Innovation: Banks can experiment with new products and services more easily in a cloud-based environment.

  5. Data Analytics: Cloud-based data storage and processing enable advanced analytics and insights.


Blockchain Technology

DLT, or Distributed Ledger Technology, is important to understand Blockchain. Distributed ledger technology (DLT) is a digital system for keeping track of the transactions of assets. The transactions and their details are recorded in multiple places at the same time. In contrast to traditional databases, distributed ledgers do not have a convenient place to store data or manage them.


Blockchain is a type of distributed ledger that has a list of ordered records called "blocks" that keeps growing. Every block has a timestamp and a link to the block before it. By their very nature, blockchains make it hard to change the data. Once the data in a block is written down, it cannot be changed. This makes blockchain stand out because each "block" is linked to the others and kept safe with cryptography. Digital relationships and ledgers do not need a trusted third party because trust is spread out and not centralised along the chain. This is made possible by cryptography. So, a Distributed Immutable Ledger is made, which is also known as DLT or Distributed Ledger Technology.


Applications of Block Chain:

Faster Payments: By setting up a decentralised channel for payments (like crypto), banks can use modern technologies to make payments faster and reduce the costs of processing them. Banks could offer a new level of service, bring new products to market, and finally be able to compete with innovative fintech startups if they made sending payments safer and cheaper. By using blockchain, banks will also be able to cut down on the need for third-party verification and speed up the time it takes to process traditional bank transfers.

Clearance and Settlement Systems: A distributed ledger technology like blockchain could make it possible for banks to settle transactions directly and keep better track of them than protocols like SWIFT do now.

Buying and Selling Assets: Keeping track of who owns what is important for buying and selling assets like stocks, commodities, or debts. This is done through a complicated network of exchanges, brokers, clearing houses, central security depositories, and custodian banks. All these different parties are based on an old system of paper ownership that is no longer used. As you might expect, the system is not only slow, but also full of mistakes and easy to trick.

Credit and Loans: Banks that review loan applications look at things like the applicant's credit score, whether they own a home, and the ratio of debt to income. To get all this information, they need to ask for your credit report, which is made available by agencies that deal with credit. With blockchain, we can look forward to the future of peer-to-peer loans, which will be faster and safer.

KYC Identification: Without identity verification, banks would not be able to handle money transfers over the Internet. But there are a lot of steps in the verification process that customers do not like. It can be a face-to-face check, a form of authentication (like every time you log into a service), or authorization. All these steps need to be taken for every new service provider to keep things safe.

100% Verified solved assignments from ₹ 40  written in our own words so that you get the best marks!
Learn More

Don't have time to write your assignment neatly? Get it written by experts and get free home delivery

Learn More

Get Guidebooks and Help books to pass your exams easily. Get home delivery or download instantly!

Learn More

Download IGNOU's official study material combined into a single PDF file absolutely free!

Learn More

Download latest Assignment Question Papers for free in PDF format at the click of a button!

Learn More

Download Previous year Question Papers for reference and Exam Preparation for free!

Learn More

Download Premium PDF

Assignment Question Papers

Which Year / Session to Write?

Get Handwritten Assignments

bottom of page