Fundamentals of Financial Markets

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

The objective of this course is -
1. To get a basic understanding of the products, players and functioning of financial markets, particularly the capital market.
2. To acquire understanding of the various segments of Financial Markets.

9.00
Unit I: 
Indian Financial System and Financial markets

Indian Financial system- concept, components and functions
Financial Markets –
• Types of Markets: Overview of money market and capital market - 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

• 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 Statement Analysis- financial statements.
• Stock market related ratios;
• Simple analysis before investing in the shares;
• Understanding annual report;
• Director’s report etc.

References: 

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

Academic Year: 
2021-2022
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