Equity Markets

Paper Code: 
25BIE132
Credits: 
04
Contact Hours: 
60.00
Max. Marks: 
100.00
Objective: 

This course will enable the students to thoroughly understand securities markets, encompassing primary, secondary, government securities, and derivatives markets.

Course Outcomes: 

 

Course outcome (at course level)

Learning and teaching strategies

Assessment Strategies

Course

Code

Course title

 

 

On completion of this course, the students will be able to:

CO7 Analyze the structure, functions, and regulation of the Indian securities market, including investment options.

CO8 Assess the functions and participants in the primary market, focusing on raising funds internationally and collective investment options.

CO9 Evaluate the operations of national and international stock markets.

CO10 Examine the Indian debt market, particularly the Government security market segment.

CO11 Critically evaluate the functioning of derivative market in India.

CO12 Contribute effectively in course-specific interaction

Approach                            in

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

 

 

teaching:

 

 

Interactive Lectures,

 

 

Discussion,

 

 

Tutorials,                    Reading

 

 

assignments, White

 

 

board teaching, case

 

 

studies

 

 

25BIE132

Equity Markets (Theory)

Learning activities for the students: Role-Playing Exercises, Online Stock market, Simulation, Case Analysis, Investment Analysis, Product Comparison .

 

12.00
Unit I: 
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:

• 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:

• 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: 

• K.Natrajan E.Gordon, Financial Markets and Services , Himalaya publishing house
• Pathak Bharti V, Indian Financial System, Pearson Education, New Delhi
• Gupta N., Gupta Shashi K., Aggarwal N, Financial Institutions and Markets, kalyani publishers .

References: 

• Agarwal M.R,. Security Analysis and Portfolio Management , Garima Publications
• Bhole L.M., Financial Institutions and Markets Structure, Growth and Innovation, Tata Mc Graw Hill, New Delhi.
• National Stock Exchange of India Limited, Capital Market Core Module.

E-Resources:
https://www.bseindia.com/static/about/BSE_Ebooks.aspx
https://www.bseindia.com/
https://www.nseindia.com/
https://www.sebi.gov.in/

Journals:
• Journal of Financial Markets
https://www.sciencedirect.com/journal/journal-of-financial-markets
• Indian journal of research in Capital markets http://indianjournalofcapitalmarkets.com

Academic Year: