Course Objective:
FINANCIAL SYSTEM
The objective of this course is to provide an in-depth insight and conceptual understanding to the students of the
structure,
organization and working of the financial system
Course Contents:
Module I: Introduction
Introduction of Indian Financial & Investment Industry; Financial System and Economic development; Constituents of
f inancial
system; significance, development and growth of financial and capital markets in India.; Financial reforms and
present scenario,
regulatory authorities governing financial and capital markets. Bank credit and working capital financing; Management
of bank
funds.
Module II: Financial Instruments
Capital market instruments equity, debentures, preference shares, sweat equity shares, non-voting shares; new
instruments of
capital market-pure, hybrid and derivatives; money market instruments- treasury bills, commercial bills; certificate of
deposits;
new money market instruments. Instruments Issued outside India; FCCBs, GDRs, ADRs, ECBs, etc.-their
characteristics,
advantages and disadvantages, procedure for issue of various instruments.
Module III: Capital Market
An introduction, meaning and significance of capital market; capital market vis--vis money market; securities
laws/regulatory
framework governing Capital Market; an overview of international capital market.
a) Primary Market
Meaning, significance and scope; developments in primary market; various agencies and institutions involved in
primary market;
role of intermediaries-merchant bankers, registrars, underwriters, bankers to issue, portfolio managers, debenture-
trustees, etc.their
rules,
regulations
and
code
of
conduct
framed
by
SEBI.
b)
Secondary
market
Meaning,
significance,
functions
and scope of secondary market; secondary market intermediaries-stock brokers, sub-brokers,
advisors, their rules, regulations and code of conduct framed by SEBI. Secondary Market Institutions:-Stock
exchanges,
functions and significance of stock exchanges; operations of stock exchanges; Trading settlement, transfer procedure
on NSE
and BSE, classification and listing of securities; Depository System, Market markers
c) Debt market
An overview of Government Securities market, wholesale, debt market, retail debt market, Credit Rating agencies &
their
process of rating
Module IV: Money Market
Growth of money market, its structure, new money market instruments and framework of markets-call money market,
short term
deposit market, Treasury bill market, gilt edged securities market, regulatory authorities and regulations/guidelines
governing
money market.
Module V: Private Foreign Investment
Introduction to Foreign direct investment, FIIs, offshore funds, Overseas venture capital investment.
Module VI: Mutual Funds
Introduction, definitions & types
Module VII: Non-Banking Finance Companies