This course will enable students to acquire comprehensive knowledge of derivatives, money markets, debt markets, security analysis, and principles of portfolio management.
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CO7 Master derivatives' |
Approach in teaching: Interactive Lectures, Discussion, Tutorials, Reading assignments, White board teaching, Demonstration of Fundamental Analysis and Technical Analysis, Calculation of investment amount using MS EXCEL and construction of portfolio thereafter Learning activities for the students: Role-Playing Exercises, Online Banking Simulation, Case Analysis, Derivative strategies Analysis & Comparison Projects |
Continuous assessment test, Semester end examinations, Quiz, Solving problems in tutorials, Assignments, Presentation, Individual and group projects |
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intricacies and |
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economic roles in |
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finance. |
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25BIE332 |
Derivatives, Money & Debt Market (Theory) |
CO8 Assess advanced liquidity management strategies in the money market. CO9 Analyze corporate and government debt securities markets extensively. CO10 Apply advanced security analysis principles for stock investment. CO11 Construct tailored investment portfolios using sophisticated methodologies. CO12 Contribute effectively in course-specific interaction |
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• Basics of derivatives, Features, Indian derivatives Market, Market participants, Types of derivatives instruments, Economic Significance of derivatives, Products, and Functions.
• Forward and Futures- Introduction, major future contracts,Futures Trading Strategies: Hedging, Arbitration and speculation. Difference between forward and future contracts.
• Options: Basics of options, Options payoff, Break Even Price and Trading Strategies- Spread- Bull, Bear and Butterfly, Straddle, Strangle, Strips & Straps,
• Swaps: Meaning, Interest rate swaps, Currency Swaps,Derivative Trading, Clearing and settlement mechanism in India.
Money Market:
• Introduction, Basic Characteristics of Money Market Securities, Money Market Intermediaries Treasury Bills, Types of T- Bills, Commercial papers, Commercial Bills, Certificates of Deposits, Call / Notice Money Market, , Money Market Mutual Funds,
• Link between money market and monetary policy in India, Tools for Managing Liquidity in the money marke, Money market derivatives.
Debt Market:
• Introduction, Basic characteristics of Debt Securities.
• Private corporate Debt Market: product and participants, primary and secondary segment of corporate debt instrument.
• Public sector undertaking bonds market: product and participants, primary and secondary market for debt instrument.
• Government securities debt market: product and participants, primary and secondary market for debt instrument. Bond Valuation- Bond Price, YTM, YTC, current yield, spot interest rate, duration of bond.
• Credit rating of Debt Securities: Trading, clearing and settlement mechanism of debt market
• Overview of Stock exchange and stock indices.
• Fundamental Analysis: Meaning, objectives, Company Analysis, Industry Analysis and Economic Analysis.
• Technical Analysis: Meaning, utility of Technical Analysis, Technical v/s Fundamental Analysis. Theories of Technical Analysis-Dow Theory, Elliot Wave Theory.Tools and Techniques of technical Analysis: price and Volume charts, Bar charts, Line chart, Candlestick charts, Trend, Head and Shoulders, Support and Resistance level, Moving Average. Criticism or Weaknesses of Technical Analysis
• Concept of portfolio and portfolio management, Process of portfolio management, Types of portfolio management-Active portfolio management, Passive Portfolio Management, Defensive Portfolio management, Aggressive Portfolio Management, Income portfolio Management. Optimum Portfolio
• Risk and Return – Concept, Total Risk and its components, Concept of Return, Measurement of Return-Realised return and Expected Return. An overview of Diversification of Risk. Financial Regulation
• Securities and Exchange Board of India.
• Reserve Bank of India
• “Pathak, Bharati V., Indian Financial System, Pearson Education, New Delhi.
• Prafulla Kumar Swain, Financial Derivatives, Himalaya Publishing House.
• Securities market and Products- Institute of Banking and Finance. Taxmann
• M.R. Agarwal , Security Analysis and Portfolio Management -Garima Publications.
• Bhole L.M., Financi
• al Institutions and Markets, Tata Mc Graw Hill, New Delhi
Suggested Readings:
• Suyash N Bhatt , Security Analysis and Portfolio Management, -Biztantra publication.
• Ravi M.Kishore, Strategic Financial Management, Taxmann’s Publication.
• Williams, Michacls, Fundamentals of Option Markets, Mc Graw Hill, New Delhi
• Hull, John, Introduction to Futures, Option market, Prentice Hall of India, New Delhi
• Redhead, Keith, Financial Derivatives- An Introduction to futures, forwards,option and swaps, Prentice Hall of India, New Delhi
E-Resources
• P Chandra, Investment Analysis and Portfolio Management , McGraw Hill Education, https://www.expresslibrary.mheducation.com/bookshelf [2]
• Sasidharan ,Security Analysis & Portfolio Mgt., McGraw Hill Education, https://www.expresslibrary.mheducation.com/bookshelf [2]
• Sundaram, Rangarajan ,Derivatives, McGraw Hill Education, https://www.expresslibrary.mheducation.com/bookshelf [2]
• National Digital Library
Journals
• International Journal of Financial Management, http://publishingindia.com [3]
• The Journal of Finance, https://onlinelibrary.wiley.com/journal/15406261 [4]
• International Journal of Finance and Economics, https://onlinelibrary.wiley.com/journal/10991158 [5]
• Directory OF Open Access Journals (OA)
• ProQuest
Links:
[1] https://finance.iisuniv.ac.in/courses/subjects/derivatives-money-debt-market-8
[2] https://www.expresslibrary.mheducation.com/bookshelf
[3] http://publishingindia.com
[4] https://onlinelibrary.wiley.com/journal/15406261
[5] https://onlinelibrary.wiley.com/journal/10991158
[6] https://finance.iisuniv.ac.in/academic-year/2025-2026