TITLE: FINANCIAL MARKETS AND SERVICES COURSE CODE : 3COMDE0504 CREDITS : 5+1 DURATION OF EXAMINATION TOTAL: 150 Marks MINOR TEST : 01 Hour MINOR TEST: 30 Marks MAJOR TEST : 03 Hours MAJOR TEST: 120 Marks
Objective: To provide the student a basic knowledge of financial markets and institutions and to familiarise them with major financial services in India.
Unit 1: Introduction (18 HOURS)
Financial System and its Components – financial markets and institutions; Financial intermediation; Flow of funds matrix; Financial system and economic development; An overview of Indian financial system
Unit 2: Financial Markets (18 HOURS)
Money market – functions, organisation and instruments, Role of central bank in money market; Indian money market – An overview; Capital Markets – functions, organisation and instruments. Indian debt market; Indian equity market – primary and secondary markets; Role of stock exchanges in India.
Unit 3: Financial Institutions (18 HOURS)
Commercial banking – introduction, its role in project finance and working capital finance; Development Financial institutions (DFIs) – An overview and role in Indian economy; Life and non-life insurance companies in India; Mutual Funds – Introduction and their role in capital market development. Non-banking financial companies (NBFCs).
Unit 4: Financial Services (18 HOURS)
Overview of financial services industry: Merchant banking – pre and post issue management, underwriting. Regulatory framework relating to merchant banking in India
Unit 5: Leasing and hire-purchase (18 HOURS)
Consumer and housing finance; Venture capital finance; Factoring services, bank guarantees and letter of credit; Credit rating; Financial counselling.
Suggested Readings: 1. L M Bhole, and Jitendra Mahakud. Financial Institution and Markets, McGraw-Hill Education 2. Khan, M.Y. Indian Financial System, McGraw-Hill Education.
COURSE CODE : 3COMDE0504 Page 1 of 2
CLUSTER UNIVERSITY OF JAMMU SYLLABUS – SEMESTER 5th (CBCS) – B.Com HONOURS (DISCIPLIEN SPECIFIC ELECTIVE COURSE)
3. Dhanekar. Pricing of Securities. New Delhi: Bharat Publishing House.
4. Prasanna, Chandra. Financial Management: Theory and Practice. McGraw-Hill Education. 5. Clifford Gomez, Financial Markets, Institutions and Financial Services, PHI Learning 6. MY Khan and PK Jain. Financial Services. McGraw Hill Education. 7. Singh, J.K. Venture Capital Financing in India. Dhanpat Rai and Company, New Delhi. 8. Annual Reports of Major Financial Institutions in India. Note: Latest edition of text books may be used
INSTRUCTIONS FOR PAPER SETTERS AND CANDIDATES:
Minor Test: 1) The Minor Test shall be held for the first 20% of the syllabus having 30 marks i.e. covering first unit out of five units. 2) It will comprise of three long answer type questions of 8 marks each and students will have to attempt any two and 10 short answer type questions of 2 marks each and student will have to attempt any 7 questions.
Major Test: It will be of two parts
1) Part A: It will comprise of 5 questions of 3 marks and 9 questions of 1 mark. (Short answer/objective type question of 24 marks) covering all five units with equal weightage to all units. 2) Part B: Comprising of eight long answer questions of 24 marks each, from 2nd, 3rd, 4th and 5th units. Two questions shall be set from each unit and student will have the internal choice. Each question of 24 marks will have two parts: i) Long answer question of 18 marks. ii) Short answer question/numerical of 6 marks.
