FINANCIAL MARKETS

Syllabus

BA4002

FINANCIAL MARKETS

Unit I: Financial Markets in India                                                                                                            9

Indian Financial System and Markets – Structure of Financial Markets in India –Types-Participants in Financial Market – Regulatory Environment, - RBI, CCIL, Common Securities Market, Money Market, -Capital Market - Governments Philosophy and Financial Market – Financial Instruments.

Unit II: Indian Capital Market- Primary Market                                                                                    9

Primary Market - Primary Market System - Types of Scripts - Issue of Capital: Process, Regulation Pricing of Issue, – Methods of Floating New Issues, Book Building- Primary Markets Intermediaries: Commercial Banks, Development Banks, Merchant Banker, Issue Managers, Rating Agencies etc. – Role of Primary Market – Regulation of Primary Market.

Unit III: Secondary Market                                                                                                                      9

Stock Exchanges in India - History and Development -Listing - Depositaries - Stock Exchange Mechanism: Trading, Settlement, Risk Management, Basics of Pricing Mechanism - Player and Stock Exchange - Regulations of Stock Exchanges –Role of SEBI – BSE, OTCEI, NSE, ISE, - Role of FIIs, MFs and Investment Bankers –Stock Market Indices – Calculation.

Unit IV: Debt Market and FOREX Market                                                                                             9

Bond Markets in India: Government Bond Market and its Interface with Capital Market - Components of Bond Market - G-Sec, T-Bills, Corporate Bonds, Yield Conventions, Role of Primary Dealers, Auction Markets - Pricing of Bonds.

Introduction to Forex Markets, Basics in Exchange Rates Theory - Forex Risk Exposures and Basics of Corporate Forex Risk Management.

Unit V: Mutual Funds, Derivatives Markets and Venture Capital and Private Equity                         9

Mutual Funds Institutions in India. Types of Mutual Funds, Basics in Portfolio Management, Metrics of Performance for Fund Manager Introduction to Derivatives and the Size of Derivatives Markets -Brief Introduction to Forwards, Options, Futures And Swaps. Role of VCs and PEs in Financial Markets - Venture Capital and Private Equity.