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Date Submitted: 05/12/2016 02:16 AM
UNIT - I
Learning Objectives:
After reading this chapter you will be conversant with:
Meaning and Definitions of Financial services
Kinds of Financial services
Evolution and growth of these services
Nature and characteristics of financial services
Goods marketing v/s service marketing
Strategic financial services
Services Marketing triangle
The Financial services sector in India is blooming and has become one of the
lucrative areas to professionalism. The sector has undergone metamorphosis
since 1990. Indian economy got liberalized during 1991 and the financial sector
was kept open for private and foreign players. During the late eighties, the
financial services industry in India was dominated by commercial banks and
other financial institutions governed by the Central Government. The economic
liberalization has brought in a complete transformation in the Indian financial
services industry.
Prior to the economic liberalization, the Indian financial service sector was
characterized by various other factors, which was related to the growth of this
sector. Some of the factors of significance are as follows:
Too much of control and regulation by the apex bodies in the
form of interest rates, money rates etc.
Controller of capital issues used to regulate the prices of
securities
Absence off independent credit rating and credit research
agencies.
Strict regulation of the foreign exchange market
Restrictions on foreign investment and foreign equity
Non-availability of debt instruments on a large scale.
However, after the economic liberalization the entire financial sector has under
gone a sea-saw change and now new financial instruments are entering the
capital market on a daily basis. The present scenario in the Indian Capital
market is characterized by financial innovation and financial creativity.
Financial services basically mean all those...