FINANCIAL MARKETS AND INSTITUTIONS
Subject Code:3006 Credits: 04
Contact Hours: 60 Hours/ Week: 4
External Marks: 80 Internal Marks: 20
The course is structured to help the students understand & make a career in Indian financial markets.
COURSE OBJECTIVES:
1. To help students to get understanding of the players and functioning of financial markets.
2. To Expose students to trading & settlement mechanism of Indian Stock Market.
EXPECTED OUTCOME:
Students will be equipped with the knowledge of dealing in financial market.
Module 1 12 Hours
Financial Markets
Reading Pedagogy
Concepts; Indian Financial System; Types of Financial
Material
Markets; Role and Need of Financial Markets; Capital
Market and Economic Development; Regulatory Bodies
- SEBI, Registrar of Companies; Legal Framework (Key
Provisions only) - Securities Contracts (Regulation) Act,
1956, Securities and Exchange Board of India Act, 1992,
SEBI (Intermediaries) Regulations, 2008, The
Depositories Act 1996, Companies Act 2013; Dealer and Bhole, L. M. Classroom Teaching,
Brokers - Code of conduct, Dealing through Brokers, and M Y Khan Presentations
Model Market Practices, overview of SEC, European
Commission; European central Bank, Bank of England;
Federal Reserve system.
Module 2 12 Hours
Primary Market
Concepts; Methods of raising money from Indian
Primary Market; Market Players - Merchant Bankers, Classroom Teaching,
Bhole, L. M.,
Depository, Brokers, Bankers, Underwriter; SEBI Article Analysis
M YKhan
guidelines; IPOs – Concept, Issue Process - Book from ET
Building Process; FPO; Private Placement; QIB
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Placement; Rights Issue ;BRLM & Register to Issues.
Module 3
12 Hours
Secondary Market
Concepts; Membership of Stock Exchanges;
Dematerialization; Rematerialisation; Rolling Settlement;
Market Players; Stock Exchanges in India- BSE, NSE, Classroom Teaching,
M Y Khan.,
OTCEI; Market Capitalization; Trading, Clearing and Visit to Broking
NISM Study
Settlement Mechanism; Role of NSCCL; Investor House, Stock
Material
Protection Fund (IPF); Insider Trading; Unfair Trade Simulation Game
Practices; Stock Indices- Concept, Types –BSE and
NSE–Construction, SEBI’s Recent Brokers Model.
Module 4
12 Hours
Indian Debt and Money Markets
Concept; Instruments – Issuer, Market Participants;
Wholesale Debt Market - Market Participants; Pricing of
Issue; Face Value; Coupon Rate; Trading and Settlement
System in BSE and NSE; Product and Services offered
M Y Khan, Classroom Teaching,
by NSE and BSE; Yield Curve; Corporate Debt; Market
Machiraju Presentation
Reporting Platform; Retail Debt Market - Market
Participants; Money Market -Concept, Instruments,
Issuer, MarketParticipants, Pricing, Primary &
Secondary Market
Module 5
12 Hours
Specialized Financial Institutions
SIDBI, IIFCI Ltd, IIBI, BIFR, IIFC Ltd., IRFC, PFC Ltd, Bhole, L. M., Students’
EXIM Bank, NSFDC, NSTFDC, NMDFC, NHB, HDFC, Machiraju presentations
KSFC.
Note: Students should be encouraged and oriented towards writing NCFM and NISM Certification
Examinations.
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Essential reading:
1. Indian Financial System Khan, M.Y by Tata McGraw
Suggested Reading:
1. Indian Financial System by Pathak, PearsonEducation.
2. Financial Markets & Services by Gordon & Natarajan,
3. Financial Institutions and Markets by Bhole, L. M., Tata McGraw Hills, New Delhi.
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