Solved Assignment July Dec 2016 MS-46 (Sample Copy)

Course Code MS-46 Course Title Management of Financial Services Assignment Code MS-46/ SEM - II/2016

Assignment Coverage All Blocks

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1. Select any financial service of your choice and discuss the impact of technology on that service.

I choose Commercial Banks to discuss impact of Technology on the services provided by them. Commercial banks accept deposits ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------handled with checks, debit cards or credit cards, instead.

Twenty years ago, a bank was the building you ---------------------------------------------------------------------------------------------

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----------------------------------------------------------------------------------------------------------------technology. But rather than

being left as a monument to the past, the banking industry seeks to be rebuilt through this same technology which washes it

away.

The dissemination of technology into --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------expanded credit card market. Employee credit unions are now a significant player in consumer banking.

Despite losses in their traditional roles, ------------------------------------------------------------------------------------------------------------------------------------------------------------------------Imaging Technology, Electronic Data Transfer (EDT), and Smart Cards and virtual banking--work individually and together to transform banking's role and appearance in society.

Imaging Technology (Electronic Check Presentment)

Physical transfer of paper checks between retailers ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------to combat fraud initially, but it has also had a major impact on the other two costs.

ECP separates the payment information on the check from the actual paper document. A depositing bank uses the Magnetic Inc Character Recognition (MICR) from the check to ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------electronic transfer. Plus, EPC enables fewer errors that result from miscalculations and fewer mistakes made in transference of information.

As powerful the effects of ECP may be, imaging technology opens further opportunities through its elimination of and consolidation of paper documents. Signatures, ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------and retrieval costs associated with paper documents, but it will allow banks to serve customers more quickly and more efficiently.

Electronic Data Transfer

Closely related to ECP and Imaging is Electronic ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------daily business transactions.

Banks will be able to charge firms (and other banks) fees for EDT service. As EDT service is expanded into new areas, rather than merely replacing other forms of bank-managed payment, its fees will help to strengthen banks' financial position. Many banks have suffered large financial losses in recent years due to fluctuations in the interest rates. Because of this, Banks have been moving away from interest-sensitive income, and more toward fee income like that generated by EDT services.

Smart Cards and Virtual Banking

The proliferation of ATMs and the potential of ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------, and they can access or manipulate information or cash.

Not only can this technology improve customer service through more timely and more flexible service (note how technology

has helped shift the definition of "service" from a personal interaction to a specific manipulation or a degree of accessibility),

but Smart Cards can generate new revenues for banks. The credit card presently serves customers over a wide range of

transactions: it can be used to purchase durable and non-durable goods, entertainment, and long-distance communication, for

example. Along with this wide-spread use, --------------------------------------------------------------------------------------------------

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-----------------------------------------------------------------------------------------------------------"cash" balance instead of

purchasing on credit, customers are less likely to overcharge with the cards.

Besides reducing fraud, Smart Cards provide other opportunities for use. They expand the range of transactions to include financial services such as securities market manipulations, mortgage and loan payments, and insurance transactions. This secure method of payment opens greater ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------. This will enable them to be used as information managers by linking payment systems together with a wealth of personal records and outside sources of information.

Possibly the greatest advantage that Smart-card technology provides to banks is this wider range of society's transactions in which the bank can participate. As Smart Cards replace cash, --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- meat and Oreo cookies(!)]. As was previously mentioned, with banks looking to secure themselves from interest-rate fluctuations, fee-based income such as those generated by Smart Cards are especially desired.

Technology's Shift of Banking

Even stronger than the individual effects of ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------of even greater impact may be banking's shift toward being an information processor.

Imaging Technology, EDI, Smart Cards (with ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------, payment, and financing system most appropriate for the business. For example, a bank could work with a hospital to develop an electronic filing system that

would use imaging technology to coordinate "images" ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------. Smart Card technology could allow quick identification of patients' health data and payment information; plus, it could be used to allow medical personnel (and patients) quality access to personal financial information.

This shift in core concentration also posses ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------. Changes in society have placed banking on the crest of the technological wave, leaving banks to negotiate the wave, to determine what role they will play in the next generation.

2. Study any Stock Exchange of your choice and explain its organizational structure. Also discuss the recent developments that have taken place in that organization.

The Shanghai Stock Exchange (SSE) was founded on Nov. 26th, 1990 and commenced operation on Dec.19th of the same year. It is a non-profit organization directly ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------, and managing and disseminating market information.

SSE has 31 departments or affiliated organizations. They are Executive Office, Offering and Listing Department, Listed

Company Supervision Department, Listed Company Supervision Department Ⅱ, Trading Management Department, Market

Surveillance Department, Membership Department, ----------------------------------------------------------------------------------------

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-------------------------------------------------------------------------------Center, FTZ Trading Platform Preparation Team, and SSE

New Building Construction Project Team. Additionally, SSE has three wholly owned subsidiaries: the Shanghai Securities

Telecommunication Co. Ltd, SSE InfoNet Co. Ltd and SSE Financial Service Co. Ltd. All of them operate efficiently to

ensure that SSE fulfills its role as an organizer in the securities market. Meanwhile, SSE also expanded its businesses by

investing in the shares of 16 other companies.

After a quarter century of development,SSE has made laudable efforts in pushing forward reforms. With the introduction of “Shanghai-Hong Kong Stock Connect” and the “Equity Option”, SSE broke new ground and became into a more open, comprehensive, and modern exchange. --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- 1081 listed companies with the total market capitalization hitting 29.5 trillion RMB. Its total annual turnover in 2015 stands at 132.6 trillion RMB and the average daily turnover reached 543.3 billion RMB. The total capital raised in the equities market in 2015 was a staggering 871.3 billion RMB. The bond market consists of 4,489 ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ turnover hitting 10.4 trillion RMB. The registered account of investors has reached 136.99 million by the end of 2015.

Organizational structure-

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Recent developments-

The securities listed at the SSE include the three main categories of stocks, bonds, and funds. Bonds traded on SSE include treasury bonds (T-bond), corporate bonds, and convertible corporate bonds. SSE T-bond market is the most active of its kind in China. There are two types of ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------, foreign investors are now allowed (with limitations) to trade in A shares under the Qualified Foreign Institutional Investor (QFII) program which was officially launched in 2003. Currently, a total of 98 foreign institutional investors have been approved to buy and sell A shares under the QFII program. Quotas under the QFII program are currently US$30 billion. There has been a plan to eventually merge the two types of shares in the future.

The SSE is open for trading every Monday to Friday. --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------is closed on Saturday and Sunday and other holidays announced by the SSE.

In 2010, the CSR initiatives of the SSE -----------------------------------------------------------------------------------------------------------------------------------------------------------------. Now, the SSE capital market research institute has released an analysis report (available in Chinese only) on the sustainability disclosure performance of SSE listed companies. The report, published last month, shows that 351 companies released CSR reports in 2011 – an increase of seven percent since 2010. 296 of these companies were required ------------------------------------------------------------------------------------------------------------------------------------------------------ the other listed companies in both quantity and quality of CSR reports. 69 percent of SSE 180 companies released CSR reports, more than half of which referenced the GRI Guidelines. Sustainability reporting in China is receiving more recognition and attention than ever before. Between 2001 and 2011, the number of sustainability reports issued in --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- and increased education on corporate governance. Based on the findings of the report, the --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------as the GRI Guidelines to improve the quality of their reports. Elyse Chen, Research Coordinator at GRI’s Focal ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------presence in China, will go a long way to aiding the uptake of sustainability reporting initiatives in the country.” China’s stock exchanges have taken an active role in promoting CSR and the disclosure of sustainability performance by listed companies. As major stock exchanges start paying attention to, and asking for, sustainability data, more are sure to follow suit. GRI is working with many of these stock exchanges ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- Organizational Stakeholders, and can get involved in the development of the new G4 Guidelines. GRI looks forward to seeing even more exchanges looking at sustainability data and encouraging listed companies to report.

3. Discuss the various products that are being offered by a Mutual Fund of your choice to investors. Which of these schemes according to you are suitable to which class of Investors?

Mutual Fund Schemes and their features-

There are a wide variety of Mutual ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------- as the foundation of your investment programme or as a supplement, Mutual Fund schemes can help you meet your financial goals. (A) By Structure Open-Ended Schemes: These do not ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- is liquidity. You can conveniently buy and sell your units at net asset value ("NAV") related prices. Close-Ended Schemes: Schemes that have a stipulated maturity period (ranging from 2 to 15 years) are called close-ended schemes. You can invest directly in --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------that they are generally traded at a discount to NAV; but closer to maturity, the discount narrows. Some close-ended schemes give you an additional option of selling your units directly to the Mutual Fund through periodic repurchase at -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- are provided to the investor. Interval Schemes: These combine the features of open-ended and close- ended schemes. They may be traded on the stock exchange or may be open for sale or redemption during pre-determined intervals at NAV related prices. (B) By Investment Objective Growth Schemes: Aim to provide --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------regular income or needing their money back in the short-term. Features:

Investors ---------------------------------------- earning years. Investors ------------------------------------ the long-term

Income Schemes: Aim to provide ------------------------------------------------------------------------------------------------------------------------------------------------- debentures. Capital appreciation in such schemes may be limited. Features:

Retired people and ----------------------------------------------- stability and regular income. Investors who need some ----------------------------------------- their earnings.

Balanced Schemes: Aim to provide --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------these schemes may not normally keep pace, or fall equally when the market falls. Features:

Investors looking for a combination of income and moderate growth. Money Market Schemes: Aim to --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------these schemes may fluctuate, depending upon the interest rates prevailing in the market. Features:

Corporate and individual investors as a means to park their surplus funds for short periods or awaiting a more favourable investment alternative.

Other Schemes

Tax Saving Schemes: These --------------------------------------------------------------------------------------------------------------------------------------------------------------------------- offers tax incentives for investment in specified avenues.

For example, Equity Linked ------------------------------------------------------------------ and Pension Schemes.

Recent amendments to the Income Tax Act provide further opportunities to investors to save capital gains by investing in Mutual Funds. The ---------------------------------------------------------- in the relevant offer documents.

Feature-

Investors seeking tax rebates.

Sector Funds: Sector funds are those with the objective to invest only in the equity of those companies existing in a specific sector, as laid down in the fund’s offer document. For example, ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------Cement, steel and petrochemicals.

Index Funds: Index Funds try to mirror --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- that constitute a particular index. Investment in these scrips is also made in proportion to each stocks weight in the index.

Exchanged Traded Funds: ETFs are a phenomenon which impart a lot of liquidity to an existing market. They are passively Managed Funds tracking and --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------traded in the world in different countries. The total assetss in ETFs globally are over $ 70 Billion USD.

ETFs INDEX SPONSORS

SPDRs --------------------- AMEX

WEBS MSCI --------------------------

-------------------------- DOW JONES --------------------

TRACKER FUND ------------------------------------- ---------------------------- ----------------------------

-------------------------- ------------------------ NASDAQ , AMEX

How to pick best mutual fund scheme Every investor has a reason to invest depending ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------to take, the investable amount, their goals, the investment term, etc. For example, a young ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------funds towards a debt-based mutual fund with only a small or zero exposure to equity. Similarly, while a long-term investor might --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

------------------------------------------------------------------------asset classes based on risk profile, investment needs, and horizon. Based on their structure and objective, mutual funds can be classified into: Categorization by structure: 1. Open-Ended Schemes: These funds buy and sell ------------------------------------------------------------------------------------------------------------------------------------------------------- The key feature of open-ended schemes is high liquidity. 2. Closed-Ended Schemes: The unit capital of -------------------------------------------------------------------------------------------------------------------------------------------------------------------- closed-ended fund after its NFO period is over. This means that new investors cannot enter, nor can existing investors exit till the term of the scheme ends. 3. Interval Schemes: With characteristics -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- to trade units at pre-determined intervals. Categorization by investment objective: 1. Growth/Equity Schemes: The aim of growth funds is to provide capital appreciation over the medium to long- term. Such schemes normally invest a major part of their -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- Growth schemes are good for investors having a long-term outlook seeking appreciation over a period of time. 2. Income/Debt Schemes: The aim of income funds is to provide regular and steady income to investors. Such schemes generally invest in fixed income securities such --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------the interest rates fall, NAVs of such funds are likely to increase in the short run and vice versa. However, long term investors may not bother about these fluctuations. 3. Balanced funds: The aim of balanced funds --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------stock markets. However, NAVs of such funds are likely to be less volatile compared to pure equity funds. --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------. These funds are appropriate for corporate and individual investors as a means to park their surplus funds for short periods.

Ten Key Mantras for Mutual Fund Investors

Mutual fund investing is for everyone. ------------------------------------------------------------------------------------------------------------------------------------------------------------- exposure, asset classes and tax-treatment. The trick is to choose wisely. Whether you are new to investing through mutual funds or a seasoned investor, following these ten key mantras will ensure that you make the most of your investments. Ten Key Mantras for Mutual Fund Investors 1. Stay true to your risk appetite - Based on ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------. While equity funds have the highest risk, liquid funds carry the least. Choose a scheme that matches your own risk appetite.

2. Have clear goals and invest accordingly - Read the ------------------------------------------------------------------------------------------------------------------------------------------------------------ scheme that is likely to offer the best return, in time for your goals. Equity based mutual funds may be preferred for goals which are at least five years away. 3. Be disciplined - At the onset, make a financial --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------. Gradually, as your investible surplus increases, start investing more. 4. Stay invested and do not try to time the market - Everybody ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ time to grow through compounding. Also, avoid churning the portfolio unless necessary. 5. Diversify - Mutual funds offer you several opportunities to diversify your investments. Different types of funds include diversified equity (large-cap, mid-cap, small-cap), ------------------------------------------------------------------------------------------------------------------------------------------------------------------- are ample baskets for all your eggs. Choose wisely. 6. Do not be lured by NAVs - Unlike stock prices, the absolute value of a mutual NAV does not suggest anything about the quality or performance of the scheme. ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ does not mean that you are buying low. 7. Dividends are not bonuses - Mutual fund schemes offer ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- dividends, invest in growth plans, which are ideal for long-term capital appreciation. 8. Include Balanced Funds and Index Funds - If ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ index funds as cost-effective mutual funds that may help mitigate fund house and fund manager related risks. 9. Other Investment Vehicles - While investing through mutual funds is great, one must also consider other investment avenues like real estate, direct equity, government bonds and other fixed income assets. 10. Regular Monitoring - One of the ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------investment objectives. Periodic monitoring allows one to take corrective actions and stay on track.

4. What functions are undertaken by National Housing Bank? Discuss the powers vested in it to regulate and supervise the housing finance companies.

National Housing Bank (NHB), a wholly --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------housing finance institutions both at local and regional levels and to provide financial and other support incidental to such institutions and for matters connected therewith.

NHB registers, ---------------------------------------------------------------------------------------------------------------------------------------------------------- surveillance through On-site & Off-site Mechanisms and co-ordinates with other Regulators.

NHB has been ---------------------------------------------------------------, inter-Alia, the following objectives –

1. To promote a sound, healthy----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------finance system with the overall financial system.

2. To promote a network of ---------------------------------------------------------------------------------------------------------------------------------------------- regions and different income groups.

3. To ------------------------------------------------------------------------------------------ them for housing. 4. To ------------------------------------------------------------------------------------------ more affordable. 5. To regulate the --------------------------------------------------------------------------------- authority derived under the Act. 6. To encourage ---------------------------------------------------------------------------------------------------------------------------

---------------------------------------------------------- housing and to upgrade the housing stock in the country. 7. To encourage --------------------------------------------------------------------------- of serviced land, for housing.

The 3 Main function of NHB in the housing finance business in the country are as follows

1. Promotion and Development Function

The institution had been set up when regional and local level housing finance institution were nearly absent and the banking sector was not willing to do housing finance --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------which raises resources through the open market and deliver credit with minimum necessary prudential regulations by the regulator. For households below the poverty line, the institutional credit will have --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------at creating and supporting new set of specialised institutions to serve as dedicated centres for housing credit.

2. Regulatory Function

The second most important function of NHB is the regulatory role assigned to it. This role assumes more importance as the housing finance system in India enters a secondary phase of development in terms of integration with the debt and capital markets. The case for regulation also emanates -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- development and institution building. NHB has come up with guidelines for recognising HFCs for its financial assistance, guidelines for financial assistance. Besides it has also issued guidelines for prudential norms for income recognition, asset classification etc.

3. Financial Function

The third important role of NHB is to provide --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------housing loans extended by them to individual beneficiaries and for project loans extended by them to various implementing agencies. It also supports by lending directly in respect of projects undertaken by public housing agencies for housing construction and development of housing related infrastructure. It helps by guaranteeing the -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------things under the financial role that NHB plays are refinance operations, project finance, guarantee and securitisation.

Future Strategies

It has been estimated that the housing requirements till 2012 in India is around 74 mn units out of which nearly 90% of the total housing units in both the rural and urban areas are for the poor and low income segment households. Though the growth

of housing finance is about 30% in the last --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------up loan scheme, emphasis on public private partnership focussing on housing for poor, JNNURM for bringing appropriate policy and legal reforms for providing affordable housing to poor. So for all these to materialize synchronization is needed in the working of Government, RBI and NHB. Also public agencies, financial institutions and builders need to be incentivized so that NHB can achieve the goals that it has embarked on.

Powers vested in it to regulate and supervise the housing finance companies-

The second important function of NHB is the regulatory role assigned to it. It has mandate to regulate and supervise housing finance companies in India. --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------and investors. The NHB has issued Directions to the HFCs. These Directions are called ‘ Housing Finance Companies (NHB) Directions, 1989.’The directions were amended from time to time and now fresh Directions were issued in 2010.

Housing Finance Companies (HFCs)

Regulatory Function of NHB - Objectives of Regulation:

1. To -------------------------------- interest 2. To ------------------------------- growth of the sector 3. To -------------------------------- failures The National Housing Bank Act, 1987 ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------its principal objects the transacting of the business of providing finance for housing, whether directly or indirectly

Companies --------------------- Registration: 152

-------------------- have failed to seek Registration: 256

Total: 408

Companies ------------------ NHB (31.12.2012) 53

256 companies that were on the ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------, 91 were on the “mailing list”. 61 were not on the ‘mailing list.

Regulation of Housing Finance Companies

Generally in tune with the regulatory policy --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------is genuine need for deviation.

NHB : Instruments of Regulation

1. National ------------------------------------------------------, as amended in 2001

2. Housing ---------------------------------------------------------------------, as amended in 2010

3. Guidelines -------------------------------------------------- Management

4. Supervision ----------------------------------------------------

5. Statutory Returns (------------------------------------------------------------------------ Norms), Quarterly Returns (Liquid Assets).

6. Disclosure -------------------------------------------------------

7. Advertisements -------------------------------------------------------- of advertisement

8. --------------------------------------------’ Reports

9. On spot ----------------------------------------------------- conducted of HFCs

10. ----------------------------------------- reports

11. Complaints

12. Feedback from/co------------------------------------------------------------------- Reserve Bank of India,, Security Exchange Board of India, Department of Company Affairs of the Government of India, Registrar of Companies etc.

Power to inspect HFCs

The National Housing Bank at any time can cause an inspection to be made by one or more of its officers of any institution to which the National Housing Bank has made any --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------all such books, accounts and other documents in his custody or power and to furnish within such time as the said officer may specify, any statements, information relating to the affairs of the institution.

Power to collect credit information

The National Housing Bank can at any time direct any institution to submit to it credit information from time to time. The National Housing Bank can collect information --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------loans, advances or other credit facilities, the guarantees furnished; and any other information which has a bearing on the credit-worthiness of the borrower.

Power to publish information

The National Housing Bank, in the public interest can publish any credit information or other information obtained by it.

Advisory services- The National Housing ---------------------------------------------------------------------------------------------------------------------------------------- formulation of overall policies aimed at promoting the growth of housing and housing finance institutions; and (b) legislation relating to matters having a bearing on shelter, housing and human settlement.

Power of the National Housing Bank to determine policy and issue directions

The National Housing Bank, in the public interest, to regulate the housing finance system of the country and to prevent the affairs of any housing finance institution --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------weights for assets and credit conversion factors for off balance-sheet items and also relating to deployment of funds by a housing finance institution. Housing finance institution are bound to comply with the policy made by National Housing Bank.

Power of National Housing Bank to collect information from housing finance institutions as to deposits and to give directions

The National Housing Bank can direct that every housing finance institution accepting deposits will furnish to the National Housing Bank statements, information or particulars relating to deposits received by the housing finance institution.

Duty of housing finance institutions to furnish statements, etc., required by National Housing

Bank Every housing finance -------------------------------------------------------------------------------------------------------------------------------------------------, in such form as may be prescribed, and comply with any direction given to it.

Power of National Housing Bank to prohibit acceptance of deposit and alienation of assets.

If any housing finance institution --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------from accepting deposit has been issued, not to sell, transfer, create charge or mortgage or deal in any manner with its property and assets without prior written permission of the National Housing Bank.

5. Discuss in detail about any two non-life insurance policies that are relevant to each, an individual and an organization.

General insurance or non-life insurance policies, including automobile and homeowners policies, provide payments depending on the loss from a particular financial event. General insurance is typically defined as any insurance that is not determined to be life insurance. General insurance products and services are being offered as package policies --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------also offer customized or tailor-made policies based on the personal requirements of the customer. A suitable general insurance ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ and risks prevalent in life. It is also necessary to protect one’s property against risks as a loss or damage to one’s property can leave one in doldrums.

Losses created by catastrophes such as -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- have the potential to shatter lives but availing a suitable insurance cover could help mitigate the unforeseen risks. Similarly, an individual can be provided with a suitable insurance cover against Personal Accidents. A Health Insurance policy can --------------------------------------------------------------------------------------------------- of a disease or an injury. It is important for prospective customers to ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------cover is adequate and an appropriate one, as desired. While owning a vehicle can be difficult, ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------to opt for an insurance to cover these assets. General Insurance is also known as Non-Life Insurance in India. There are totally 16 General Insurance (Non-Life) Companies in India. a) Individual Policy- Individual policy provides health cover for a single individual only. It is an agreement between an individual (policyholder/customer) and the insurer -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------policy is not transferable. In case, if the policyholder wants to change his policy cover from one insurance company to any other insurance company, then such a customer (insured) has to forego the benefits such as cumulative bonus or benefits during diseases or ailments being covered under the policy.

b. I would like to opt for auto insurance for auto business. Such an insurance cover extends a lump sum amount to you in case of damage, destruction to the asset insured. This allows you to carryout repairs, replacement, etc to the property damaged. -------------------------------------------------------------------------------------------------------------------------------, there is always a possibility of damaging third-parties, and hence you need the insurance to settle the liabilities arising. Automobile insurance, like any other insurance, --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------premiums can be expensive and it may be tempting to forgo automobile insurance altogether, in most circumstances that is not feasible. The bare minimum every driver of a motorized --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------to have the minimum amount as required by law. Without basic liability coverage a driver could be given a ticket, have their drivers license revoked, or possibly even be arrested should they be pulled over by a police officer. The reason why liability coverage is so important ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------is important to prevent financial ruin such as bankruptcy of judgements resulting from a lawsuit. Comprehensive and collision are often refer to ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------and collision coverage reimburses the driver or pays for auto repairs should damage occur that wasn't caused by the driver. Uninsured motorist coverage is a more recent type ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------, not having uninsured motorist coverage may mean you have to look for toward other avenues to receive compensation for automobile repairs or damage to your person. Because of the various types of coverage offered for ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------because it may be cheaper to purchase another vehicle. If however, you're driving a brand new expensive sports car you would probably want full coverage in the event anything happens as the cost of replacing or repairing may be too expensive without the proper coverage. However, auto insurance covers much more ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------charge a small deductible depending on the type of accident that has occurred, but the cost is minimal compared to what it would cost to fix an automobile on your own. Policies which I would like to choose-

1. Liability Insurance Liability insurance covers you in the event you are in a covered auto accident and it is determined the accident is a result of your actions. Liability insurance will cover the cost of repairing any property damaged by an accident as well as the medical bills from resulting injuries. Most states have -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------limit. You wouldn't want to run the risk of having to pay a large amount of money because your policy limit has been exceeded.

2. Collision Coverage If there is a covered accident, collision ------------------------------------------------------------------------------------------------------------- cost to repair it exceeds the value of the vehicle) in an accident, collision coverage will pay the value of your vehicle.

If your vehicle is older, it may not be worth carrying collision coverage on it, depending on the value. On the other hand, if you ------------------------------------------------------------------------------------------------------------------------------ back to where you were before any damage to your vehicle. Note: If you have a license holder, this coverage is required.

3. Comprehensive Coverage What if something happens to your vehicle that is ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- (other than Collision) coverage.

Comprehensive coverage is one of those things that is great to have if it fits in your budget. Anti-theft and tracking devices on vehicle can make this coverage slightly more affordable, but carrying this type of insurance can be costly, and may not be necessary, especially if your car is easily replaceable.

4. Personal Injury Protection While Comprehensive coverage may be ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------bills along with those of your passengers will be paid, no matter who is at fault for an accident. Note: This coverage is not available in all states.

5. Uninsured /Underinsured Motorist Protection While state laws mandate that all drivers should be insured, this is unfortunately not always the case. Another issue that can arise is that while a driver may have liability insurance, ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------or you will receive less than you need to cover the cost of damages if your damages exceed their coverage amount. This is the type of situation where Uninsured and Underinsured Motorist Protection would help with expenses.

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