Tribhuvan University
Faculty of Management
Office of the Dean
Bachelor of Business Management (BBM)
Course Description
:This course deals with the investment advisory services, investment companies and products, investments and investment attributes, mergers and acquisitions, underwriting of securities, mutual funds, venture capital, origination and execution of transactions, and legal provisions and regulatory framework relating to investment banking in Nepal. The course will consist of lectures, discussions, quiz, problem solving, and case study.
Course Objective
:Enable the students to understand the issues concerning with investment banking and be conversant with the financial investment and advisory services. Course Description This course deals with the investment advisory services, investment companies and products, investments and investment attributes, mergers and acquisitions, underwriting of securities, mutual funds, venture capital, origination and execution of transactions, and legal provisions and regulatory framework relating to investment banking in Nepal. The course will consist of lectures, discussions, quiz, problem solving, and case study.
Course Contents:
Lecture hours show the approximate classroom time allocated to each unit.
Unit 1. Introduction
- Meaning and Concept of Investment Banking, Investment Banking Services: Corporate Financing, Investment Advisory Services , Financial Sponsors, Merger & Acquisition (M&A), Valuation, Financial Strategy, Management of Capital Issues, Book Building, Private Equity, Debt Capital Markets Origination, Equity Capital Markets Origination, Represent Companies for Sale, Represent Companies Buying Other Companies, Manage a Diversified Portfolio of Business and Asset Classes, Making Prudent Use of Firm Capital, Investors’ Education and Awareness in Nepal
- Legal Provision and Investment Banking in Nepal.
Unit 2. Investments and Investment Attributes
- Concept of Savings, Investment, and Portfolio
- Investment Strategies and Approaches:
- Speculation, Gambling, and Arbitrage Process
- Investment Attributes: Risk, Return, Security, Marketability, Liquidity and Convenience
- Investors Profile and Decision-Making Factors: Profile of Nepalese Investors, Factors Influencing Investment Decisions: Financial Positions, Tax Positions, and Risk Perception
- Legal Framework of Securities Markets in Nepal
Unit 3. InvestmentCompanies and Products
- Meaning and Concept of Investment Companies
- Types of Investment Management Operations, Venture Capital and Other Funds: Venture Capital Funds, Buyout Funds, and Hedge Funds
- Real Estate Investment Trusts
- Investment Products: Shares, Bonds, Fixed Deposits, Hybrid Securities, Insurance Schemes, Currency, Commodities.
Unit 4. Mergers and Acquisitions
- Meaning and Concept of Merger & Acquisitions
- Forms of Corporate Restructuring : Joint Ventures, Sell -Off and Spin -Off, Divestit ures, Mergers
- Types of Mergers
- Economic Rationale for Different Types of Mergers, Motives behind Merger, Theories of Merger, Synergy of Merger and acquisitions, Internal and External Change Forces Contributing towards M&A Activities, Legal and Regulatory Provisions relating to Mergers and Acquisitions in Nepal.
Unit 5. Underwriting of Securities
- Brief Overview of Underwriting Process
- Methods of Underwriting: Bought Deal, Best Efforts, Underwriting Syndicate
- Regulatory Procedures: Filing t he Registration Statement, Preliminary Prospectus
- Underwriting Risks, Regulatory Framework relating to Securities Underwriting
Unit 6. Mutual Funds
- Meaning and Concept of Mutual Funds, Mutual Fund Share Pricing and Performance, Exchange Traded Funds, Technology and Mutual Funds, International Dimension, Mutual Fund Selection and Asset Allocation, Structure and Regulation of Mutual Funds in Nepal
Unit 7. Venture Capital
- Concept, Characteristics, Growth, Differences between Venture Capital (VC) Financing and Conventional Financing, Stages of VC Financing Schemes, Scope of VC Financing in Nepal, Legal Aspects in VC Financing in Nepal
Unit 8. Origination and Execution of Transactions
- Introduction of Origination and Execution, Research and Market Receptivity
- Identifying Potential Investors and Develop Investor Marketing Materials, Create and Sell Securities to Institutional and Retail Clients, Negotiation/Structuring, Manage Money for Institutional and Retail Clien ts
- Trading of Derivatives, Fixed Income, Foreign Exchange, Commodity and Equity Securities.
Suggested Readings:
Liaw, K T. The Business of Investment Banking: A Comprehensive Overview. New York: John Wiley & Sons, Inc. Rosenbauum, J., and Pearl, J. Investment Banking: Valuation, Leveraged Buyouts, and Mergers & Acquisitions. New York: John Wiley & Sons, Inc. Gaugham, P. A. Mergers, Acquisitions, and C orporate Restructurings. New York: John Wiley & Sons, Inc. Puri, V. K. Corporate Mergers and Acquisitions : Strategies, Regulations and Practices . New Delhi: Jain Book Agency Ditopatra Kanoon Sangarah, Securities Board of Nepal.