Fundamentals of Financial Markets

Paper Code: 
FMG 116
Credits: 
3
Contact Hours: 
45.00
Max. Marks: 
100.00
Objective: 

Course Objectives: The objective of this course is -

  • To get a basic understanding of the products, players and functioning of financial markets, particularly the capital market.
  • To acquire understanding of the various segments of Financial Markets.

 

Course Outcomes (COs):

Course

Learning outcome

 (at course level)

Learning and teaching strategies

Assessment Strategies

Paper Code

Paper Title

 

FMG 116

Fundamentals of Financial Management

 CO25 To provide knowledge about financial system and various avenues for investment.

 CO26 Learn working of primary market and will be able to compare and contrast various tools and options in equity investing – direct, IPOs, etc.

CO27 Understand the role of securities markets as allocators of capital

CO28 To gain elementary knowledge of financial derivatives.

 CO29 To learn reading financial statements for the purpose of investment

Approach in teaching: Interactive Lectures, Discussion, Tutorials, Practical cases Demonstration, Power point presentation.    

 Learning activities for the students:                              Self learning assignments, Seminar presentation, Case Study based on contemporary world.

Class test, Semester end examinations, Quiz, Solving problems in tutorials, Assignments, Presentation, Individual and group projects

 

9.00
Unit I: 
Financial system and Financial Market

Indian Financial system- concept, components and functions
Financial Markets - Types of Markets: Overview of money market and capital market (equity, debt, derivative)- meaning, function and instruments. Types of investment avenues

9.00
Unit II: 
Primary market

Initial Public Offer (IPO); Book Building; Eligibility to issue securities; Pricing of Issues; Fixed versus Book Building issues; allotment of Shares; Basis of Allotment; Private Placement

9.00
Unit III: 
Secondary Market-

Secondary Market- Role and functions of Securities and Exchange Board of India (SEBI); Depositories- meaning, process and function;
Stock exchanges; overview of Intermediaries in the Indian stock market, Listing; Membership; Trading Clearing and settlement and risk management; Investor protection fund (IPF); and Do's and Don'ts for investors

9.00
Unit IV: 
Derivatives

meaning, Types of derivatives; Commodity and commodity exchanges; Commodity versus financial derivatives

9.00
Unit V: 
Financial Statement Analysis

financial statements. Stock market related ratios; Simple analysis before investing in the shares; understanding annual report; Director’s report etc.

Essential Readings: 

• • Bharti V. Pathak ‘Indian Financial System’.Pearson publication. 5edition.
• Bhole. L.M. “Financial Markets and Institutions’ Tata Mc Graw Hill, New Delhi
• Gordan, Natrajan” Financial Markets & Management of Financial Services” Himalayan publication, New delhi
• Vasant Desai, “Indian Financial System”, Himalayan Publication
References

References: 

• • Gold Smith.R.W. “Financial Institutions”
• Khan M.Y “Indian Financial Theory and Practice”, Vikas Publishing House.
• NCFM and NISM Modules

Academic Year: 
2020-2021
  • Printer-friendly version
  • PDF version