Financial Markets and Banking Operations

Syllabus

205FIN (Semester II)

Financial Markets and Banking Operations

UNIT-I

Basic Concepts of Indian Financial System: Structure and Components: Indian Financial System in India, Role of Financial System in Economic Development. Introduction to Financial Institutions – Banking – Non-Banking Institutions. Role and Functions of Banks and their Contribution to the Indian Economy. Introduction to Financial Markets, Functions, and Classification. Money Market, Capital Markets, Bond Markets, Commodity Markets, Money Markets, Derivatives Markets, Futures Markets, Foreign Exchange Markets, Crypto Currency Market.              (7+2)

UNIT-II

Money Market: Structure and Components: Participants in Indian Money Market, Money Market Instruments, Structure of Money Market, Role of Central Bank in Money Market; Players in the Indian Money Market, The Reforms in Indian Money Market.                                                                                                                      (7+2)

UNIT-III

Capital Market: Components & Functions of Capital Markets, Primary & Secondary Market Operations, Capital Market Instruments - Preference Shares, Equity Shares, Non-voting Shares, Convertible Cumulative Debentures (CCD), Fixed Deposits, Debentures and Bonds, Global Depository Receipts, American Depository Receipts, Global Debt Instruments, Role of SEBI in Capital Market.                                                                                       (7+2)

UNIT-IV

Banks and NBFCs: Types of Banks & NBFCs: Central Bank, Nationalized & Co-operative Banks, Regional Rural Banks, Scheduled Banks, Private Banks & Foreign Banks, Mudra Bank, Small Finance Banks, Specialized Banks, NBFCs.

Types of Banking: Wholesale and Retail Banking, Investment Banking, Corporate Banking, Private Banking, Development Banking.                                                                                                                         (7+2)

UNIT-V

Concepts in Banking and Accounting of transactions: Accounting in Banks, Electronic Banking, RTGS, ATM, MICR, OCR, OMR, and DATASET, Petty Cash, Electronic Clearing Service (ECS), National Electronic Funds Transfer (NEFT) System, Real Time Gross Settlement (RTGS) System, IMPS.                                                   (7+2)