Fundamentals of Financial Markets

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

To get a basic understanding of the products, players and functioning of financial markets, particularly the capital market.

9.00

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

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

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, Equity and debt investment.

9.00

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

9.00

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: 

Essential Reading
• 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: 
2019-2020
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