Describe the Fee based services provided by the financial institutions.
List of Fee based services provided by the financial institutions.
Issue management: This refers to the management of securities offerings of the corporate sector to public and existing shareholders or it is managing issues of corporate securities like equity shares, preference shares and debentures or bonds. Also issue management involves marketing of capital issues and provide assistance to the corporate units.
Corporate Advisory Services: These services are needed to ensure that a corporate enterprise runs efficiently at its maximum potential through effective management of financial and other resources. Also these services constitute an important component of the portfolio of the activities of the merchant bankers.
Credit Rating: Credit is the trust in a person’s ability and intention to pay or reputation of solvency and honesty and rating means estimating the worth of or assigning the value to classify a person’s position. Thus credit rating is an expression of an opinion through symbols about credit quality of the issue of securities or company with reference to a particular instrument.
Mutual Funds: It is a trust that pools the savings of a number of investors who share a common goal and is a long term investment with a certain level of risk.
Asset Secularization: It is a process in which,loans and other receivables are packaged, underwritten and sold in the form of asset backed securities. Under Asset Secularization a financial institution pools and packages individual loans and receivables, creates securities against them, gets them rated and sells them to the large investors at large through public offerings or private placements.