Contents Preface V PART 1: Introduction Chapter 1 Introduction to Financial Services 3 1.1 Finance and Business 3 1.2 Financial Services 4 1.3 Characteristics of Financial Services 4 1.4 Distinctiveness of Financial Services 5 1.5 Classification of Financial Services 7 1.6 Financial Intermediation and Disintermediation 7 1.6.1 Need for Financial Intermediaries 8 1.6.2 Characteristics of Financial Intermediation 8 1.6.3 Advantages of Financial Intermediation 9 1.6.4 Disadvantages of Intermediation 10 1.7 Financial Disintermediation 11 1.8 Financial Exclusion and Inclusion 11 1.8.1 Financial Exclusion 11 1.8.2 Financial Inclusion 15 1.9 Credit Creation Process 17 1.10 Financial Products and Services 18 Chapter Summary 19 Key Words 19
xiv Contents Suggested Assignments 20 Suggested Questions 20 Chapter 2 The Financial System 22 2.1 Introduction to Financial System 22 2.2 Functions of a Financial System 23 2.3 Financial Markets 24 2.3.1 Characteristics of Financial Markets 24 2.3.2 Classification of Financial Markets 25 2.3.3 Primary and Secondary Markets 27 2.3.4 Stock Exchanges 28 2.3.5 Performance of the Indian Capital Market 41 2.4 Securities Market 47 2.5 Money Market 50 2.6 Foreign Exchange Market 57 2.7 Financial Sector Reforms 58 2.8 Institutional Framework 64 Chapter Summary 74 Key Words 74 Suggested Assignments 75 Suggested Questions 75 Suggested Books For Further Reading 75 Chapter 3 Globlisation of Financial Markets 77 3.1 Meaning of Globalisation 77 3.2 Need for Globalisation 78 3.3 Process of Globalisation 79 3.4 Impact of Globalisation 80 3.5 International Experiences of Globalisation 82 3.6 Globalisation of Financial Markets 83 3.7 Structure of Global Financial Markets 83 3.7.1 International Equity Markets 83 3.7.2 Barriers to International Investments 86 3.7.3 International Equity Price Movements 86 3.7.4 Fixed Income Securities Market 86 3.7.5 International Bonds 88 3.7.6 Foreign Exchange Market 91 3.7.7 Global Derivatives Market 93 3.8 Global Financial Products 97
Contents xv 3.9 Cross Border Investments and Borrowing Opportunities 97 3.10 Financial Market Integration 98 Chapter Summary 99 Key Words 99 Suggested Assignments 99 Suggested Questions 100 Suggested Further Readings 100 PART 2: Conceptualisation Chapter 4 Asset-Based Corporate Financial Services 105 4.1 Leasing and Hire-purchase 105 4.1.1 Introduction to Leasing 105 4.1.2 Definition 106 4.1.3 Essentials of Lease Transactions 106 4.1.4 Types of Leases 107 4.1.5 Advantages of Leasing 110 4.1.6 Leasing Process 113 4.1.7 Lease Evaluation 114 4.1.8 Lease Rental Calculation 115 4.2 Hire Purchase 116 4.2.1 Evolution 116 4.2.2 Hire Purchase Process 117 4.2.3 Parties to a Hire Purchase Contract 117 4.2.4 Legal Framework 119 4.2.5 Taxation Aspects 119 4.3 Mortgage Loans 121 4.3.1 Introduction 121 4.3.2 Definition of Mortgage 121 4.3.3 Mortgage Origination 121 4.4 Working Capital Finance 123 4.4.1 Introduction 123 4.4.2 Bank Finance for Working Capital 123 4.5 Factoring 128 4.5.1 Introduction 128 4.5.2 Definition and Functions 128 4.5.3 Characteristics of Factoring Services 130 4.5.4 Types of Factoring 130 4.5.5 Costs and Benefits of Factoring 132
xvi Contents 4.5.6 Factoring Services in India 134 4.5.7 Management Issues in Factoring Services 134 4.5.8 Marketing of Factoring Services 134 4.5.9 Future Prospects 135 4.6 Forfaiting 135 4.6.1 Evolution 135 4.6.2 Forfaiting Process 136 4.6.3 Cost of Forfaiting 136 4.6.4 Benefits of Forfaiting 137 4.6.5 Forfaiting-Indian Experience 138 4.7 Commercial Paper 138 4.7.1 Eligibility 138 4.7.2 Credit Rating 138 4.7.3 Maturity and Denomination 139 4.7.4 Issuing of CP 139 4.7.5 Investments in CP 139 4.7.6 Payment of CP 140 4.7.7 Stand-by Facility 140 4.7.8 Role and Responsibilities 140 4.7.9 Current Status 141 4.8 Certification of Deposit 141 4.8.1 Eligibility 141 4.8.2 Minimum Size of Issue and Denominations 142 4.8.3 Subscription 142 4.8.4 Maturity 142 4.8.5 Reserve Requirements 142 4.8.6 Transferability 142 4.8.7 Loans/Buy-backs 142 4.8.8 Format of CDs 142 4.8.9 Security Aspect 143 4.8.10 Payment of Certificate 143 4.8.11 Current Status 143 4.9 Bank Deposit Schemes 143 4.9.1 Current Account 144 4.9.2 Fixed Deposit 144 4.9.3 Demat Account 144 4.10 Bonds and Debentures 145 4.10.1 Who Issues the Bonds? 145
Contents xvii 4.10.2 Price of the Bond 146 4.10.3 Who Buys Bonds? 146 4.10.4 Principal Features of Bond 146 4.10.5 Types of Bonds 147 4.10.6 Regulatory Framework 150 4.10.7 Bond Market in India 150 4.11 Debentures 151 4.11.1 Difference between Bonds and Debentures 151 4.11.2 Types of Debentures 152 4.11.3 Terms of Debenture Issue 152 4.11.4 SEBI s Control 154 Chapter Summary 154 Key Words 154 Suggested Assignments 154 Suggested Questions 155 Chapter 5 Fee-Based Corporate Financial Services 156 5.1 Guarantees (Financial and Performance) 156 5.1.1 Financial Guarantees 157 5.1.2 Performance Guarantee 157 5.1.3 Continuing Guarantee 157 5.1.4 Specific Guarantees 157 5.1.5 Deferred Payment Guarantee (DPG) 158 5.1.6 Revocation 158 5.1.7 Invocation of Guarantee 158 5.1.8 Cost of Guarantee 159 5.1.9 Securities 159 5.1.10 Advantages and Disadvantages of Guarantees 159 5.1.11 Regulatory Framework 161 5.1.12 Payment of Invoked Guarantees 167 5.2 Letters of Credit 168 5.2.1 Definition 168 5.2.2 Types of Letters of Credit 168 5.2.3 Process of Opening Letter of Credit 170 5.2.4 Advantages of Letter of Credit 171 5.2.5 Disadvantages 171 5.2.6 Amendments 171 5.2.7 Regulations 171
xviii Contents 5.2.8 Guidelines for Grant of LCs Facility 172 5.2.9 Precautions and Safeguards 172 5.2.10 Payment under LCs Settlement of Claims 173 5.2.11 FEDAI Rules 173 5.3 Bills Co-acceptance Facility (BCF) 173 5.3.1 Advantages 174 5.3.2 Disadvantages 174 5.3.3 Irregularities in Co-acceptance of Bills 175 5.3.4 Safeguards 175 5.4 Credit Insurance 175 5.4.1 Deposit Insurance and Credit Guarantee Corporation of India Ltd. 176 5.4.2 Export Credit and Guarantee Corporation of India Ltd. 177 5.4.3 Credit Insurance Facility from New India Assurance Company Ltd. 187 5.5 Credit Syndication 190 5.6 Corporate Restructuring 191 5.7 Credit Rating 193 5.7.1 Advantages of Credit Rating 198 5.7.2 Disadvantages of Rating 198 5.7.3 Regulation of Credit Rating Services 198 5.8 Electronic Fund Transfer 199 5.8.1 Evolution 199 5.8.2 Current Status 201 5.9 Certification Services 203 5.10 Cash Management Services 203 5.11 Venture Capital Finance 204 5.11.1 Evolution and History 204 5.11.2 Venture Capital Financing in India 205 5.11.4 Venture Capital Financing Process 207 5.11.5 Accessing Venture Capital 209 5.11.6 Incubation Process 209 5.11.7 The Business Plan 211 5.11.8 Selection of Venture Capital Fund 212 5.11.10 Growth of Venture Capital Financing in India 213 5.11.12 Prospects of Venture Capital Financing in India 215 Chapter Summary 216 Key Words 216
Contents xix Suggested Additional Readings 216 Suggested Assignments 217 Suggested Questions 217 End Notes 218 Chapter 6 Merchant Banking 219 6.1 Origin of Merchant Banking (Evolution) 219 6.2 Definition 220 6.3 Activities of Merchant Bankers 220 6.4 Regulation of Merchant Banking Activity 221 6.4.1 SEBI Merchant Banking Regulations 221 6.4.2 Capital Adequacy Requirement 221 6.4.3 Eligibility Criteria 222 6.4.4 Code of Conduct for Merchant Bankers 223 6.4.5 Maintenance of Books of Accounts, Records etc. 225 6.4.6 Appointment of Lead merchant Bankers 225 6.4.7 Responsibilities of Lead Managers 225 6.4.8 Underwriting Obligations 226 6.4.9 Submission of Due Diligence Certificate 226 6.4.10 Documents to be Furnished to SEBI 226 6.4.11 Continuance of Association of Lead Manager with an Issue 226 6.4.12 Prohibition of Acquisition of Shares 227 6.4.13 Information to SEBI 227 6.4.14 Disclosures to SEBI 227 6.4.15 Appointment of Compliance Officer 227 6.4.16 Payment of Fee to SEBI 227 6.4.17 Role of Merchant Bankers in Initial Public Offering 228 6.4.18 Indian IPO Market 229 6.4.19 Pricing Issues 229 6.4.20 Pre-Issue Obligations of Merchant Banker 229 6.4.21 Prospectus 234 6.4.22 Post-issue Formalities 237 6.4.23 Redressal of Investor Grievances 238 6.4.24 Co-ordination with Intermediaries 238 6.4.25 Underwriters 238 6.4.26 Bankers to an Issue 238 6.4.27 Other Responsibilities 240 6.5 Listing of Shares 241
xx Contents 6.6 SEBI Guidelines ADR, GDR AND IDR 242 6.7 RBI Guidelines on ADR/GDR 248 6.8 Bonus issue 248 6.8.1 SEBI Guidelines on Bonus Issue 249 6.9 Rights Issue 250 6.10 Sweat Equity 250 6.10.1 SEBI Guidelines on Sweat Equity 250 6.11 Book-Building 251 6.12 Reverse Book Building 253 6.13 Registrars 254 6.14 Brokers 257 6.15 Underwriters and Underwriting 257 6.16 Printers 259 6.17 Depository Participants 260 6.18 Asset Securitisation 262 6.18.1 Meaning 263 6.18.2 Cherry Picking 263 6.18.3 Parties to a Securitisation Transaction 263 6.18.4 The Process of Securitisation 265 6.18.5 Key Elements in Securitisation 265 6.18.6 Basic Methods of Transfer of Assets 267 6.18.7 Benefits of Securitisation 268 6.18.8 Securitisation in India 271 6.18.9 The Barriers 273 6.18.10 Road Map Ahead 276 6.18.11 Future of Securitisation in India 277 6.18.12 Legal Initiative 278 6.19 Merchant Banking in India 279 Chapter Summary 280 Key Words 280 Suggested Assignments 280 Suggested Questions 281 Suggested Readings 281 Case Discussion 1 282 Case Discussion 2 283 Case Discussion 3 284 End Notes 286
Contents Chapter 7 Asset-Based Retail Financial Services 287 7.1 Personal Finance 287 7.2 Consumer Finance 288 7.3 Housing Finance 288 7.4 Residential Mortgage Backed Securities (RMBS) 291 7.4.1 Securitisation Process 291 7.4.2 Benefits of Securitisation 291 7.5 Reverse Mortgage 292 7.6 Educational Loans 293 7.7 Automobile Loans 296 7.8 Discounting/Purchase of Cheques 297 7.9 Mortgage Loans 298 7.10 Deposit Schemes 299 7.10.1 Savings Bank Account 299 7.10.2 Current Account 299 7.10.3 Term Deposit 300 7.10.4 Cumulative Term Deposit 300 7.10.5 Accounts in the Name of Non-Resident Indians 300 7.10.6 Deposits under National Savings Schemes 304 7.10.7 Demat Accounts 306 7.11 Chitties and Nidhis 306 7.12 Mutual Funds 307 7.12.1 Mutual Funds in India 308 7.12.2 Mutual Fund Concept 309 7.12.3 Organisation 310 7.12.4 Types of Mutual Funds 320 7.12.5 Types of Mutual Funds in India 322 7.12.6 Benefits 324 7.12.7 Limitations 325 7.12.8 Micro Finance 326 Chapter Summary 327 Key Words 328 Suggested Assignments 328 Suggested Questions 329 Case Discussion 330 End Notes 332 xxi
xxii Contents Chapter 8 Fee-Based Retail Financial Services 333 8.1 Personal Tax Counseling 334 8.1.1 Tax Return Preparer (TRP) Scheme 335 8.2 Credit Card, Debit Card and Smart Card 337 8.2.1 Credit Cards 337 8.3 Debit Cards 344 8.4 Smart Cards 346 8.5 Barter Cards 350 8.6 Automated Teller Machines (ATM) 351 8.6.1 Benefits of ATM 352 8.7 Foreign Inward Remittance 352 8.8 Foreign Outward Remittances 353 8.9 Fund Transfer Facilities 354 8.10 Safe-Deposit Lockers 356 8.10.1 RBI Guidelines on Safe Deposit Lockers/Safe Custody of Articles Facility 357 8.11 Safe-Custody Facilities 358 8.12 Certifications 358 8.13 Portfolio Management 358 8.13.1 SEBI Guidelines on Portfolio Management 359 8.11.2 General Obligations and Responsibilities of Portfolio Manager 360 8.14 Bancassurance 365 Chapter Summary 368 Key Words 369 Suggested Assignments 369 Suggested Questions 369 End Notes 370 Chapter 9 Marketing of Banking and Financial Services 371 9.1 Concept of Marketing in Financial Services 371 9.2 Characteristics of Financial Services Marketing 373 9.2.1 Financial Services 373 9.2.2 Financial Institutions 373 9.3 Marketing of Financial Services 374 9.4 Banking Product Development 374 9.4.1 Marketing Mix 375 9.4.2 Product 375 9.4.3 Price 375
Contents xxiii 9.4.4 Promotion 375 9.4.5 Placement 376 9.4.6 Public Image 376 9.4.7 Product policy 377 9.5 Distribution Policy 379 9.6 Marketing Research 380 9.6.1 Market Research 380 9.6.2 Advertising Research 380 9.6.3 Consumer Research 380 9.6.4 Steps in Market Research 380 9.8 Segmentation of Bank Market 381 9.9 Competition 382 9.10 Advertisement and Sales Promotion of Banking Products 383 9.11 Consumer Behaviour in Bank Market 388 9.11.1 Consumer and Customer 388 9.11.2 Consumer Behaviour 388 9.11.3 Buying Motives 389 9.12 Marketing Strategies 391 9.13 Selling Strategies 393 9.14 Customer Satisfaction to Customer Delight 394 9.15 Quality Management in Banks ISO Certification 395 9.15.1 General 395 9.15.2 Application 396 9.15.3 Normative References 396 9.15.4 Terms and Conditions 396 9.15.5 Quality Management Systems 396 9.15.6 Documentation Requirements 397 9.15.7 Management Responsibility 397 9.15.8 Planning 397 9.15.9 Responsibility, Authority and Communication 398 9.15.10 Internal Communication 398 9.15.11 Management Review 398 9.15.12 Resource Management 399 9.15.13 Product/Service Realisation 399 9.15.14 Design and Development 400 9.15.15 Purchasing 401 9.15.16 Measurement, Analysis and Improvement 403 9.15.17 Analysis of Data 404
xxiv Contents 9.15.18 Improvement 404 9.15.19 Conclusion 405 9.16 Banking Ombudsman Scheme 405 Chapter Summary 406 Key Words 406 Case Discussion 406 Suggested Assignments 409 Suggested Questions 409 Suggested Readings 410 PART 3: Management Chapter 10 Management of Banking Institutions 413 10.1 Definition of a Banking Company 413 10.2 Licensing of Banks 414 10.3 Branch Expansion 415 10.4 Organisational Structure 420 10.5 Organisation of Branches, Regional and Zonal Offices 422 10.6 Functions of Head Office 424 10.7 Functions of Regional/Zonal Office 428 10.8 Organisation of Branches 429 Chapter Summary 435 Key words 436 Suggested Assignments 436 Suggested Questions 436 End Notes 437 Chapter 11 Management of Non-Banking Financial Companies 438 11.1 Definition of a Non-Banking Financial Company 438 11.2 Role of NBFCs 440 11.3 Classification of NBFCs 441 11.3.1 Categorisation of NBFCs 441 11.4 Registration Requirements 442 11.5 Opening of NBFCs 442 11.5.1 Entry Point Norms 442 11.5.2 Organisational Structure 443 11.5.3 Responsibilities of the Board of Directors 443 11.5.4 Role and Responsibility of Independent and Non-Executive Directors 443
Contents xxv 11.5.5 Company Secretary 444 11.5.6 Commonality of Directors of Banks and Non Banking Finance Companies (NBFC) 444 1.6 Human Resources Department 444 11.7 Products and Services 445 11.8 Marketing Process 445 11.9 Credit Management 446 11.9.1 Credit Facilities to the Directors 446 11.9.2 Time Frame for Recovery of Loans 447 11.10 Guidelines on Fair Practices Code for NBFCs 447 11.10.1 Applications for Loans and their Processing 447 11.10.2 Loan Appraisal and Terms/Conditions 447 11.10.3 Disbursement of Loans including Changes in Terms and Conditions 447 11.10.4 Know Your Customer Standards 448 11.10.5 Customer Acceptance Policy (CAP) 449 11.10.6 Customer Identification Procedure (CIP) 450 11.10.7 Monitoring of Transactions 452 11.10.8 Risk Management 453 11.10.9 Customer Education 454 11.10.10 Introduction of New Technologies Credit Cards/Debit Cards/Smart Cards/Gift Cards 454 11.10.11 KYC for the Existing Accounts 454 11.10.12 Applicability to Branches and Subsidiaries Outside India 454 11.10.13 Appointment of Principal Officer 455 11.11 Finance Management 455 11.12 Supervisory and Control Systems 456 11.13 Management Information System 465 11.14 Customer Grievance Redressal Mechanism 466 11.15 Financial Linkages between Banks and NBFC 467 11.16 Structural Linkages between Banks and NBFCs 468 11.17 Regulatory Issues 468 Chapter Summary 471 Key Words 471 Suggested Assignments 471 Suggested Questions 472 End Notes 472
xxvi Contents Chapter 12 Management of a Stock Broking Firm 473 12.1 Definition of a Stock Broking Firm 473 12.2 Registration of a Stock Broking Firm 473 12.3 Opening of a Stock Broking Firm 474 12.4 Organisational Structure 474 12.5 Clearing Members (CM) 475 12.6 Clearing Banks 475 12.7 Clearing Mechanism 475 12.8 Settlement Mechanism 476 12.9 Settlement of Futures Contracts 476 12.10 Margin Trading 476 12.11 Functions of Regional Offices 477 12.12 Functions of Branches 477 12.13 Functions of Head Office 477 12.13.1 Finance Management 477 12.13.2 Risk Management 477 12.14 Regulations for Risk Management 478 12.15 Pay In Pay Out 479 12.16 Settlements 479 12.17 Clearing and Settlement Process at NSE 480 12.18 Margin Trading 480 12.19 Trading 480 12.20 Trading and Risk Management 481 12.21 Portfolio Management 481 12.21.1 Portfolio Manager 481 12.21.2 Discretionary Portfolio Manager and a Non-discretionary Portfolio Manager 481 12.22 Handling IPOs and New Issues 482 12.23 HR Management 483 12.23.1 Current Scenario 483 12.23.2 Steps to Improve HRM 483 12.23.3 Major Challenges of HR Department 483 12.24 System Management 483 12.24.1 Duties and Responsibilities of Compliance Department 484 12.25 Marketing Functions 484 12.26 Management Information System 493 12.27 SEBI guidelines on Brokers and Sub-brokers 493 12.28 General Obligations and Responsibilities 494
Contents xxvii 12.29 Depository Participant Functions 495 12.29.1 Rights and Obligations of DPs 496 Chapter Summary 497 Key Words 498 Suggested Assignments 498 Suggested Questions 498 Chapter 13 Management of an Insurance Company 499 13.1 Introduction 499 13.2 Principles of Insurance 500 13.3 History of Insurance 500 13.4 Insurance Industry in India 501 13.5 Types of Insurance 503 13.5.1 Life Insurance 503 13.5.2 Non-Life Insurance 506 13.6 Opening of Insurance Companies 509 13.7 Organisational Structure 512 13.8 Role of Actuary in Insurance 513 13.9 Functions of Head Office 515 13.10 Functions of Zonal Offices 515 13.11 Functions of Regional Offices 515 13.12 Functions of Area Offices (AO) and Branches 516 13.12.1 Policy Issuing Process 516 13.12.2 Proposal Form 516 13.12.3 Cover note 517 13.12.4 Policy 517 13.13 Acceptance of Business 518 13.14 Marketing Process 518 13.15 Advertisement and Sales Promotion 522 13.16 IRDA Regulations on Insurance Advertising 524 13.17 Insurance Claims Handling Process 529 13.18 Risk Management 531 13.19 Investments 536 13.20 Investment in Financial Derivative Contracts 547 13.21 Prudential Norms 547 13.22 Guidelines on Subscription to Preference Shares 549 13.23 IRDA s Powers to Issue Directions Regarding Investments 549 13.24 Management Information System 549
xxviii Contents 13.25 Social Obligations 551 13.26 Micro Insurance 552 13.27 Insurance Ombudsman Scheme 555 Chapter Summary 557 Key Words 558 Suggested Assignments 558 Suggested Questions 558 Recommended Readings 559 End Notes 559 Chapter 14 Risk Management in Financial Service Sector 560 14.1 Risk 560 14.2 Classification of Risks 561 14.2.1 Liquidity Risk 562 14.2.2 Currency Risk 562 14.2.3 Credit Risk 562 14.2.4 Market Risk 563 14.2.5 Equity Risk 564 14.2.6 Interest Rate Risk 564 14.2.7 Commodity Risk 564 14.2.8 Political Risk 565 14.2.9 Legal Risk 565 14.2.10 Operational Risk 565 14.2.11 Model Risk 566 14.2.12 Reputation Risk 566 14.3 Risk Management 566 14.4 Risk Identification 566 14.5 Measuring Risk 567 14.6 Managing Risks 568 14.6.1 Asset-Liability Management in Banks 568 14.6.2 Managing Market Risks 587 14.6.3 Operational Risk Management 589 14.6.4 Use of Derivatives 591 14.7 Risk Management in NBFCs 594 14.8 Risk Management in Insurance Companies 598 Chapter Summary 599 Key Words 599 Suggested Readings 600
Contents xxix Suggested Assignments 600 Suggested Questions 601 Case Discussion 1 601 Case Discussion 2 603 End Notes 604 Chapter 15 Corporate Governance in Financial Services Sector 605 15.1 Definition 605 15.2 Need for Corporate Governance 606 15.3 Corporate Governance in Financial Services Industry 607 15.4 Corporate Governance Initiatives in Banks 611 15.5 Central Vigilance Commission and Public Sector Undertakings 614 15.6 Whistle Blowing Policy in Banks 615 15.6.1 Whistle Blowing Some Essentials 615 15.6.2 Justification for Whistle Blowing 616 15.6.3 Conditions for Whistle Blowing 616 15.6.4 Effective Whistle Blowing Policy 617 15.6.5 Whistle Blowing International and Indian Experience 618 15.7 Corporate Social Responsibility 621 Chapter Summary 627 Key Words 627 Suggested Additional Readings 628 Suggested Assignments 628 Suggested Questions 629 Case Discussion 629 End Notes 632 PART 4: Supervision Chapter 16 Financial Sector Supervision 635 16.1 Genesis of Banking Supervision 635 16.2 Review and Revision of Supervisory Regulations 637 16.3 Financial Regulation and Supervision Global Initiatives 653 16.4 The Bank for International Settlements (BIS) 655 16.5 Core Principles of Effective Banking Supervision 655 16.6 Legal Initiatives on Financial Services Acts 661 16.6.1 The Companies Act, 1956 661 16.6.2 Banking Regulation Act, 1949 662 16.6.3 Bankers Books of Evidence Act of 1891 663
xxx Contents 16.6.4 Securities Contract Regulation Act, 1956 663 16.6.5 Securities and Exchange Board of India Act, 1992 663 16.6.6 Reserve Bank of India Act, 1934 664 16.6.7 Deposit Insurance Corporation Act, 1961 664 16.6.8 The Finance Act 665 16.6.9 Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest (SARFAESI) Act, 2002 665 16.6.10 Insurance Regulatory and Development Authority (IRDA) Act, 1999 665 16.6.11 Other Enactments 666 16.7 Institutional Framework 666 16.7.1 Ministry of Finance 666 16.7.2 Reserve Bank of India 671 16.7.3 Securities and Exchange Board of India 673 16.7.4 Insurance Regulatory and Development Authority 678 Chapter Summary 681 Key Words 682 Suggested Readings 682 Suggested Assignments 682 Suggested Questions 682 Case Discussion 683 References 694 End Notes 695 Index 697