SVKM’s NMIMS ASMSOC – Course Outline

Course 742FI0E002
Code
Course
Financial Markets & Institutions
Title
Course Prof. Tanvi Joshi
Instructor/s Prof. Ved Beloskar
Course
4
Credit
Program
and B.B.A (Finance elective) Semester V
Semester
Pre-
None
Requisite
Learning CLO 1: To provide in-depth and conceptual understanding of the
Objectives functioning of India’s financial market and differentiate amongst the
various categories of participants. (PLO 1a)
CLO 2: To explain the role and importance of various financial
intermediaries and their interaction. (PLO 1a)
CLO 3: To identify and discuss the various types of financial instruments
and their usage. (PLO 1a)

Learning Upon successful completion, students will have the knowledge and skills
Outcomes to:
1. To understand and critically discuss the existence of Indian
financial markets, institutions and intermediaries.
2. To evaluate different financial instruments and their application in
real life scenarios.

Course This course explores financial markets and its institutional structures. The
Description students will be able to understand the differences between financial
instruments and the institutions that operate in today's financial markets.
The content of the course will be constantly evolving due to rapid
changes in the economic and financial environment. This subject will
provide a foundation for further study of Finance, as well as an essential
component of managerial education about the world in which business
operates.
Evaluation Specific % AOL Intended CLOs to be
Pattern Assessment Weightage Instruments Assessed
Methods / Task
CL CL CL CL CL
O1 O2 O3 O4 O5
Mid Term 20 √ √ √
Class Test 15 √ √ √
Presentation 15 √ √ √
End Term Exam 50 √ √ √

1
 Course Session Plan

Session Topics / Module Chapters (Mention Page Numbers)

/ Articles / Cases / Material and
Activities
1 - 12 An introduction to a Financial system Indian Financial System - M Y
and its constituents Khan 11th Edition – Chapter 1
 Financial Markets – Types of Financial Pages 19 - 29
markets, functions
 Financial Institutions - Classification PPT – Instructor Notes
and role of each type of institution
 Financial Instruments – Types of News Articles – Money Control,
financial instruments Financial services Mint
- Need for financial services and who
provides the same Online resources for Pre Reading
 Interaction among the 4 constituents of material–
the financial system RBI www.rbi.org.in

Learning Outcomes: Students will

understand the dynamics of Indian
Financial system and its constituents,
Various types of financial markets, its
role and function in Economic growth
and regulation of various participants in
the financial system.

2
13 - 30 Financial Markets – Types (Capital Indian Financial System - M Y
markets & Money markets) Khan 11th Edition –
 Pre-IPO activities – Start up Stage, Chapter 3
Crowd funding, Stages of venture Pages 73 – 81
funding, Chapter 4
 Primary Market - Categories of Pages 90 – 97
investors, Ways of mobilizing funds, Chapter 7
Pricing of an issue in a primary market Pages 256 – 271 and 276 – 279
– fixed price & book building, IPO Chapter 8
process, FPO and Rights Issue Page 360 - 362
 Secondary Market - Chapter 9
Types/components of Secondary Pages 369 – 372
market – Role of market
intermediaries, stock exchanges Online-Sources:
functioning, Role & functions of SEBI NSE: www.nseindia.com
 Stock market orders – Market Order, BSE: www.bseindia.com
Stop Order, Limit order, Stop – Limit, SEBI: www.sebi.gov.in
etc.
 Products in the primary & Secondary PPT – Instructor Notes
market - (equity – types of shares, debt
– principle features of a bond News Articles – Money Control,
(maturity, coupon rate, principal, Mint
maturity, yield to call, duration and
convexity), issuers of debt instruments Numerical – Hand out provided by
– Govt., PSUs, corporate, Instructor
Characteristics of Indian debt market,
Bond valuation, 4 Cs of credit for Debt
instruments
 Money market - Meaning, how is it
different from the other markets, types
of instruments in the money market –
T-bills, Certificate of deposit,
Commercial papers, Call Money
market, Repos)

Learning Outcome: Understanding

various ways of raising equity capital for
a start-up, Application of various market
orders for various secondary and money
market products. Understanding of
Regulatory framework for Primary and
Secondary markets.

3
31 - 40 Mutual funds Indian Financial System - M Y
 Working of Mutual funds Khan 11th Edition –
 Structure of Mutual Funds in India Chapter 15
 NFO Procedure Pages 725 - 738
 Types of Mutual Funds
 Myths and Facts about Mutual Funds Online Sources:
 Role & Objective of AMFI AMFI: www.amfiindia.com
 Importance of SIP, SWP, STP, Tracking
Error Morningstar: www.morningstar.in
 Comparison of Mutual Funds with
Value-Research:
various other investment products
www.valueresearchonline.com
Learning Outcome: Students will be able
to differentiate and analyse among
various Mutual Fund products available, PPT – Instructor Notes
compare MF with other sources of
investments. Numerical – Hand out provided by
Instructor

Class discussion on Factsheet of

Mutual Funds, and Current NFO
41 - 54 Introduction to Derivatives Indian Financial System - M Y
 Definitions & terminologies of basic Khan 11th Edition –
derivatives Chapter 17
 Forwards, Futures and Options (CALL Pages 913 – 917 & 920 - 923
and PUT)
 Need for derivative markets and
Participants PPT – Instructor Notes
 Introduction to derivatives trading on
Indian exchanges, Types of Margin Numerical – Hand out provided by
 Option Strategies – Straddle and Instructor
Strangle, Protective PUT, Covered
CALL, Spread strategies Online-Sources:
 Moneyness of Options NSE www.nseindia.com
BSE: www.bseindia.com
Learning Outcome: Students may be SEBI: www.sebi.gov.in
exposed to the concepts of Derivatives;
option strategies used and differentiate
among various strategies and application
in different market scenarios.

4
 55 - 60 Introduction to Commodity Markets PPT – Instructor Notes
 Difference between commodity and
financial derivatives Numerical – Hand out provided by
 Evolution & role of commodity Instructor
exchanges
 Role of NCDEX and MCX Online Sources:
 Introduction to certain global MCX www.mcxindia.com
commodity exchanges NCDEX www.ncdex.com

Learning Outcome: Students will gain an

overview into commodities markets, its
various participants and their roles

Prescribed Text Books:

Indian Financial System - M Y Khan 11th Edition (2019)
Reading
List and References: Latest Edition
References Bharati V Pathak – The Indian Financial System 5th Edition (2018)

Financial Institutions & Markets – Structure, Growth and Innovation – L M

Bhole (2017)

Prepared by Faculty Approved by Program Approved by Associate Deans

Members Chairperson
Prof. Tanvi Joshi
Prof. Ved Beloskar

Approved by I/C Dean –

ASM SOC

Annexure:
Presentations will commence from first week of August 2022. Topics of the
presentation will be based on each module and will be communicated at the
commencement of the course.

Presentation Marks Break up

 Content and PPT – 5 Marks

 Viva – 5 Marks
 Report – 5 Marks

5
Class Test – A comprehensive class test will be taken after the mid term exam,
tentatively in then last week of October 2022. This will cover Topics taught in class
up to 3rd week of October.

Pre – Reading material will be provided to students in advance. The material could
be part of a chapter from the text book or from an online resource as mentioned
above, News article from leading finance online platform such as Money Control
(www.moneycontrol.com) and Mint (www.livemint.com) will also be discussed.

Term end examination will be “Pen Paper” Based