|N\ES!MEN!

MANABEMEN!
|N
|N!EPNA!|BNA|
BUS|NESS.
Presented By:-
Mr ka[|v S|ngh
Mr kaheem khan
Mr radeep ate|
Mr Sush|| Sadansh|v
Mr Saurabh o|
Mr raksheet An[|ekar
Mr Dayanu Ltape
Mr kav|ndran 8o[[a
ontents
W lnLroducLlon Lo lnvesLmenL ManagemenL
W lorms of lnvesLmenL ManagemenL
W lorelgn Lxchange
W Cffshore 8anklng
W lorelgn ulrecL lnvesLmenL
W lnLernaLlonal llnanclal lnsLlLuLlon
W Concluslon
b[ect|ve
@he maln ob[ecLlve of Lhls presenLaLlon
are as under
@o undersLand Lhe need of lnvesLmenL
ManagemenL ln lnLernaLlonal 8uslness
@o sLudy varlous concepLs relaLed wlLh
lnvesLmenL ln lnLernaLlonal 8uslness
And Lo sLudy Lhe funcLlons and worklng of
dlfferenL lnLernaLlonal llnanclal lnsLlLuLlons
|N\ES!MEN! MANABEMEN!
nvestment management is the professional
management of various securities (shares, bonds etc.) and
assets (e.g., real estate), to meet specified investment goals
for the benefit of the investors. nvestors may be
institutions (insurance companies, pension funds,
corporations etc.) or private investors (both directly via
investment contracts and more commonly via collective
investment schemes e.g. mutual funds or Exchange
Traded Funds).
nvestment management is a large and important
global industry in its own right responsible for caretaking
of trillions of dollars, euro, pounds and yen. Coming
under the remit of financial services many of the world's
largest companies are at least in part investment
managers and employ millions of staff and create billions
in revenue.
Baaatr|es la|ag l|glest aa. af
|aestmeats
The US was by far the largest source of funds
under management with nearly a half of the world
total. t was followed by the UK with 9 and 1apan
with 6.
The Asia-Pacific region has shown the strongest
growth in recent years. Countries such as China and
ndia offer huge potential and many companies are
showing an increased focus in this region.
BPE|BN EKBHANBE
Foreign Exchange is the process of conversion of
one currency into another currency.
For a country its currency becomes money and
legal tender. For a foreign country it becomes a
commodity. Since the commodity has a value its
relation with the other currency determines the
exchange value of one currency with the other.
For example, the US dollar in USA is the currency
in USA but for ndia it is just like a commodity, which
has a value which varies according to demand and
supply.
Most countries of the world have their own
currencies The US has its dollar, France its franc,
Brazil its cruziero; and ndia has its Rupee. Trade
between the countries involves the exchange of
different currencies.
kLIGN LkANGL MAkkL1
The foreign exchange market (currency, FOREX, or FX) is
where currency trading takes place. The foreign exchange
market is the mean by which payments are made across national
boundaries, jurisdictions and currencies. This means that the
exchange of one national currency against another. For e.g. An
ndian exporter sells goods to US importer and receives
payment for the delivery in US Dollars. The exporter cannot use
the US Dollars directly in ndia. so there is need to convert the
US Dollars into DA RUPEES and thus foreign exchange
market comes into picture.
Today, the Foreign exchange market is one of the largest and
most liquid financial markets in the world, and includes trading
between large banks, central banks, currency speculators,
corporations, governments, and other financial institutions.
EKBHANBE PA!E
n finance, the exchange rates between two currencies specify
how much one currency is worth in terms of the other. t is the
value of a foreign nation`s currency in terms of the home
nation`s currency.
The foreign exchange rate indicates that if a burger in US costs
$1 then in ndia it costs 48.91. The foreign exchange rate of any
two currencies is not constant.
There are mainly two types of exchange rates :-
Spot Exchange Rates.
Forward exchange rates.
Btler Etclaage Pates
'ALUE DATE / DEL'ERY DATE:
n a foreign exchange transaction first two parties agree to
exchange two different currencies at a specific exchange rate. This date of
agreement is termed as contract date. The date at which the actual transaction
of currencies takes place is called as 'alue date or Delivery date.
PREMUM AD DSCOUT:
f a currency is more expensive at the forward delivery than at
the spot then it is said to be at PREMUM where as if the currency is cheaper
at the forward delivery than at spot then it is said to be at DSCOUT.
CROSS RATES
When one foreign currency is traded for another; other than
customers own currency, the deal is called Cross deal and the price quoted is
called as Cross Rates.
ASK RATE & BD RATE
During a foreign exchange transaction the rate quoted by the trader to
buy a currency (e.g. US DOLLAR) from the customer is called Bid rate, where
as the rate quoted by the trader to sell a currency (e.g. Euro) to the customer is
called Ask rate.
||||||K|l|H/K|||/||K|
1. SPOT TRADES
Currencies are mostly bought and sold in spot trades. The spot refers to
settlement - payment and receipt of funds in respective currencies.
2 .FORWARD TRADES
While spot trade refers to current transaction, forwards refer to
purchase or sale of a currency on a future date.
3. SWAP TRADES
The spot and forward transactions are the primary products in
foreign exchange market. A combination of spot and forward transactions is
called a swap.
4. OPTOS TRADES
n finance, a foreign exchange option is a derivative financial
instrument where the owner has the right but not the obligation to exchange
money denominated in one currency into another currency at a pre-agreed
exchange rate on a specified date.
BSHBPE BANK|NB
Offshore banks are banking units set up by foreign
banks in territories where the restrictions and
regulations are limited and the interventions of the
country of the location is minimal.
Offshore banking units bring foreign currency
funds from non-residents and the international money
market, and invest them in the host country or in
projects set up by the host country in a third country.
When you transfer money or assets to any
international bank, situated in a district outside your
land of residence and decide that they would be
handled by banking establishments in that country you
are doing offshore banking.
One such reputed bank in this sector is HSBC,
whose advertising slogan is worlds local bank and their
customers can operate their accounts, via online
banking services, sitting in any location in the world.
BPEPA!|BNS B BSHBPE BANK|NB.
The offshore banking units can raise foreign currency loans and bonds
for the host country at reasonable interest rates, due to their connections
with well known international banks.
The functional offshore centers contribute to the foreign exchange
income of the host country through local operating expenditure, such as
rent paid on leased property, salary paid to the local staff, and license
fees/taxes recovered from the offshore units.
The functional offshore centers contribute to the foreign exchange
income of the host country through local operating expenditure, such as
rent paid on leased property, salary paid to the local staff, and license
fees/taxes recovered from the offshore units.
The onshore banking industry in the host country is compelled to
improve its efficiency and skills in order to retain its competitive edge.
BPE|BN B|PEB! |N\ES!MEN!
t is defined as a company from one country making a
physical investment into building a factory in another
country. t is the establishment of an enterprise by a
foreigner.
Foreign direct investment (FD) occurs when an
investor based in one country (the home country)
acquires an asset in another country (the host country)
with the intent to manage the asset.
!\PE B BPE|BN B|PEB! |N\ES!BPS
A foreign direct investor may be classified in any sector of
the economy and could be any one of the following :-
An individual
A group of related individuals an incorporated or
unincorporated entity
A public company or private company
A group of related enterprises
A government bodies an estate (law)
Trust or other societal organization
Any combination of the above
|MPAB!S B B|
Availability of scared resources
Social
Economical
Revenue to Government
Relationship with the world
Positioning in global market
AB\AN!ABES B B|
Economic growth:-
This is one of the major sectors, which is enormously
benefited from foreign direct investment. A remarkable inflow of
FD in various industrial units in ndia has boosted the economic life of
country.
Trade:-
Foreign Direct nvestments have opened a wide spectrum of
opportunities in the trading of goods and services in ndia both in terms of
import and export production.
Employment and skill Levels:-
FD has also ensured a number of employment opportunities by
aiding the setting up of industrial units in various corners of ndia.
Technology Diffusion and knowledge Transfer:-
FD apparently helps in the outsourcing of knowledge from
ndia especially in the nformation Technology sector. t helps in
developing the know-how process in ndia in terms of enhancing the
technological advancement in ndia.
B| |N MAJBP SEB!BPS
Financial sector (banking and non-banking)
Insurance
Telecommunication
Hospitality and tourism
Pharmaceuticals
SoItware and InIormation Technology.
|ateraat|aaal f|aaac|al |ast|tat|aas
ASIAN DLVLLMLN1 8ANk (AD8)
AD8 or the As|an Deve|opment 8ank |s an |nternat|ona| f|nanc|a|
|nst|tute operat|ng s|nce 1966 AD8 prov|des f|nanc|a| ass|stance to
|ts member nat|ons for poverty reduct|on and |mprovement |n the
qua||ty of ||fe 1o f|nance |ts pro[ects AD8 |ssues bonds and a|so
|everages the contr|but|ons made by part|c|pant countr|es
1he organ|zat|on was started w|th the fo||ow|ng ob[ect|ves
I 1he soc|a| and econom|c deve|opment of the As|an and ac|f|c
countr|es
II 1o boost cooperat|ve and s|mu|taneous reg|ona| growth among
member countr|es
III As of ear|y 2007 AD8 had 67 members w|th 48 reg|ona| and 19
nonAs|an members S|nce Iapan has been the |argest shareho|der
the bank has a|ways been governed by a Iapanese res|dent AD8
|s headquartered at Metro Man||a h|||pp|nes
DN1INS
1he ma|n funct|ons of AD8 are
1echn|ca| ass|stance prov|ded to members so that
they can p|an and execute deve|opment strateg|es
and pro[ects
Ass|stance to DMs (Deve|op|ng Member
ountr|es) to coord|nate po||c|es des|gned for
deve|opment
Lqu|ty |nvestments and |oans to member nat|ons
Lncouragement to member nat|ons to |nvest
pr|vate and pub||c cap|ta| for deve|opment
IM IN1LkNA1INAL MNL1Ak DND
1he Internat|ona| Monetary und or IM came |nto ex|stence |n
194S after the end of Wor|d War II and at the beg|nn|ng of the
o|d War urrent|y the IM has |ts headquarters |n Wash|ngton
D and compr|ses 18S member nat|ons ons|der|ng |ts grow|ng
re|evance as an |nternat|ona| |ender that offers f|nanc|a| and
techn|ca| a|d to |ts member nat|ons understand|ng the IM |s key
understand|ng modern g|oba| econom|cs
keasons for ound|ng the IM
In an Amer|can town ca||ed 8retton Woods |n New ampsh|re
representat|ves of 4S western countr|es |ed by the DS and Dk
and not |nc|ud|ng the Sov|et Dn|on and commun|st b|oc countr|es
agreed to estab||sh a g|oba| econom|c |nst|tut|on f these 29
countr|es s|gned the Art|c|es of Agreement that |nc|uded the
fo||ow|ng ob[ect|ves
| L||m|nate any d|sastrous repet|t|ons of the Great Depress|on
|| ac|||tate g|oba| f|nanc|a| stab|||ty by stab|||z|ng preva|||ng
exchange rates
||| keduce poverty so that econom|c growth |s tr|ggered
|v Increase |nternat|ona| trade and emp|oyment
kLSNSI8ILI1ILS IM
Art|c|e 1 sets out ma|n respons|b|||t|es of IM wh|ch
are as fo||ows
romot|ng |nternat|ona| monetary cooperat|on
ac|||tat|ng the expans|on and ba|anced growth of
|nternat|ona| trade
romot|ng exchange stab|||ty
Ass|st|ng |n the estab||shment of a mu|t||atera| system
of payments and
Mak|ng |ts resources ava||ab|e (under adequate
safeguards) to members exper|enc|ng ba|ance of
payments d|ff|cu|t|es
I IN1LkNA1INAL INANLkkA1IN
1he Internat|ona| |nance orporat|on (I) |s a Wash|ngton D
headquartered organ|zat|on that promotes pr|vate sector
|nvestments |n deve|op|ng countr|es
1o obta|n ass|stance from the I countr|es must become |ts
members
1he organ|zat|on has a tota| of 181 members 1 become a
member of the I a country has to be a member of the Wor|d 8ank
It |s a|so requ|red to s|gn the Wor|ds Art|c|es of Agreement and
depos|t |ts Instrument of Acceptance at the orporate Secretar|at of
the Wor|d 8ank Group
1he pr|mary ob[ect|ve of the I |s the same as that of the Wor|d
8ank
W I1 WkkS
1he organ|zat|on prov|des |oans and equ|ty
f|nanc|ng for pr|vate sector |ndustr|es |n
deve|op|ng nat|ons
1he equ|ty |nvestments are funded from the
organ|zat|on's reta|ned earn|ngs and pa|d|n
cap|ta|
1he I a|so he|ps pr|vate compan|es mob|||ze
f|nanc|ng |n the |nternat|ona| f|nanc|a| markets
1h|s |s made poss|b|e because of the I's tr|p|e
A rat|ngs strong shareho|der support and
cons|derab|e cap|ta| base
II( kLIGN INS1I1D1INAL INVLS1k)
ne who propose to |nvest the|r propr|etary funds or on
beha|f of broad based funds or of fore|gn corporate and |nd|v|dua|s
and be|ong to any of the under g|ven categor|es can be reg|stered for II
ens|on unds
Mutua| unds
Investment 1rust
Insurance or re|nsurance compan|es
Lndowment unds
Dn|vers|ty unds
oundat|ons or har|tab|e 1rusts or har|tab|e Soc|et|es
Asset Management ompan|es
Nom|nee ompan|es
Inst|tut|ona| ortfo||o Managers
1rustees
ower of Attorney o|ders
8ank
An app||cat|on for reg|strat|on has to be made |n orm A the
format of wh|ch |s prov|ded |n the SL8I(II) kegu|at|ons 199S and
subm|tted w|th under ment|oned documents |n dup||cate addressed to
SL8I as we|| as to keserve 8ank of Ind|a (k8I) and sent to the fo||ow|ng
address w|th|n 10 to 12 days of rece|pt of app||cat|on
NLDSIN
In today's wor|d of G|oba||zat|on the wor|d has become a g|oba| v|||age
1hus the |nvestors now have the w|de range of opt|ons for |nvestment not [ust |n the
domest|c country but across g|obe
A|so a|| over the wor|d the bus|ness commun|ty |s |n search of |ocat|ons where the|r
|nvestments are safe and the funds can be taken out w|thout any barr|ers and
|nvested comfortab|y for any ventures |n any part of the wor|d Due to th|s the
Investment management has become a we|| known term among |nvestors
1here are var|ous ways |n wh|ch the Investment management |s done |n the
|nternat|ona| bus|ness
1he ore|gn exchange dea||ngs not on|y a||ow |nvestors to |nvest |n fore|gn countr|es
but a|so prov|de the countr|es where they |nvest the necessary fore|gn exchange
reserves
ffshore bank|ng un|ts br|ng fore|gn currency funds from nonres|dents and the
|nternat|ona| money market and |nvest them |n the host country or |n pro[ects set
up by the host country |n a th|rd country ore|gn D|rect Investments has prov|des
the deve|op|ng countr|es w|th the necessary funds requ|red for |ts deve|opment 1he
portfo||o management ensures safety of |nvestors' funds due to w|de range of
secur|t|es |nvestment