Equity Markets

Paper Code: 
BIE 132
Credits: 
4
Contact Hours: 
60.00
Max. Marks: 
100.00
Objective: 

To facilitate study of theory and practice of stock market and derivatives.

12.00
Unit I: 
To facilitate study of theory and practice of stock market and derivatives.

Securities Market :

Components, Evolution of Indian securities market, Significance and Functions. Introduction of Primary Market, Secondary Market and Derivatives Market.

 Introduction to the Regulators of stock the market, Exchange, Depositories, clearing corporation etc.

12.00
Unit II: 
Primary Market

Functions, participants. IPO- Methods followed, Green shoe option, red herring prospectus. On- line IPOs.

 Merchant banking; Role of Merchant Bankers in Primary Market.

Euro issues: Instruments used to raise funds in the International Market.

 Collective investment vehicles : Mutual funds. Venture capital funds

12.00
Unit III: 
Secondary Market

Definition and functions of Stock Exchanges, Stock Exchanges in India: NSE, BSE, OTCEI and overseas stock exchanges, stock market Indices, recent development in stock exchanges.

 Listing of securities: meaning- merits and demerits- listing requirements, procedure, delisting.

 Trading and settlement mechanism. Unfair trade practices.

12.00
Unit IV: 
Government Securities Market

Government Securities Market: Products, Participants and Functions, Types of Government securities; Treasury Bills, Government Bond, Gilt Securities.

 Indian debt market: Introduction, Products and Participants.

Wholesale debt market (WDM) segment of NSE. 

12.00
Unit V: 
Derivatives Market

Derivatives Market: Meaning, Participants, Types of Instruments in Derivatives market- Forward, Future, Option, Swaps. Types of traders in the Derivatives markets: Hedgers, Arbitragers and Speculators.  Commodity Derivatives and exchanges,  Currency derivatives , NSE's Currency Derivatives Segment

Essential Readings: 
  • Bhole L.M., Financial Institutions and Markets structure, growth and Innovation, Tata Mc Graw Hill, New Delhi.
  • Pathak Bharti V, , Indian Financial System, Pearson Education, New Delhi
  • National Stock Exchange of India Limeted, Capital Market Core Module

 

 

References: 

E Gordon, K Natrajan Financial Markets and Services, Himalaya Publishing House, New Delhi

Academic Year: