Course Title FINANCIAL MARKETS & SERVICES Credits 4

Course Code MGT 1159 Course category OE L-T-P 3-0-1

Version 1.0 Approval Details ACM Learning Level BTL-5

• The financial system, i.e. financial market, financial institutions and financial
services play a vital role in the economic growth of a country. It intermediates
between the flow of funds belonging to those who save a part of their income
and those who invest in productive assets. It mobilizes and efficiently allocates
scarce resources to a country.
• The existence of an efficient financial system facilitates economic activity and
growth. In other words, financial markets, institutions and services are the
prime movers of economic growth.
• Financial Markets & Services course has been designed to introduce and discuss
the structure and functioning of financial markets and services in India. The
Course course provides students with an in-depth understanding of these two pillars of
Description financial system. It also covers important financial institutions and instruments.
• The course includes topics such as role and nature of financial system, risk-
return trade-off and valuation, provident funds and pension funds in India,
commercial and cooperative banking in India, Indian insurance industry, mutual
funds and non-banking financial companies.
• The focus would also be on different aspect of money market and government
securities market. Regulators like RBI, SEBI, IRDA and PFRDA will also be
covered in detail. It is mandatory that the students have pre-requisite knowledge
of topics covered in the Financial Management course.
• They are also expected to have an understanding of relevant Indian and global
scenario related to financial markets, institutions and services.
• To provide an understanding of concept and nature of Indian financial system
and its components.
• To understand the concept of risk-return trade-off and valuation.
• To explain the nature and functioning of commercial and cooperative banks,
insurance companies, provident and pension funds, mutual funds, and NBFCs
Course
etc.
Objective
• To have a clear understanding of various instruments of money market and
government securities market and of regulators of financial markets and
services.
• To develop analytical skills, financial planning analysis, control, and
professional ethics to manage financial aspects.
Upon completion of this course, the students will be able to: BT Level
1. Explain, in detail, the concept and structure of Indian financial system and
Course L5
its role in the growth of the economy.
Outcome
2. Assess the risk and return associated with different kinds of securities and
L5
also do their valuation.
 3. Analyze the nature and functioning of commercial banks and cooperative
banks, and important financial institutions like insurance companies, mutual L5
funds, and NBFCs etc.
4. Analyze various instruments of money market and government securities
L5
market and the role of different regulators in financial markets and services.
5. Gain knowledge of financial services rendered by intermediaries & banks
L5
and apply such knowledge to address issues in practical scenarios.

CO, PO and PSO Mapping

PO- PO- PO- PO- PO- PO- PO- PO- PO PO- PO- PSO- PSO- PSO-
CO PO -1
2 3 4 5 6 7 8 9 -10 11 12 1 2 3

CO-1 3 - - 3 - - 2 - - - - - - - -
CO-2 2 - - 2 - - 3 - - - - - - - -
CO-3 2 - - 2 - - 3 - - - - - - - -
CO-4 - - - 3 - - - - - - - - - - -
CO-5 3 3 - - - - 2 - - - - - - - -
1: Weakly related, 2: Moderately related and 3: Strongly related
 Outline Teaching Schedule
Unit Topics No. of Sessions
1 NATURE AND ROLE OF FINANCIAL SYSTEM: Introduction, 3
Structure of Financial System– Financial Institutions, Financial
markets, Financial Instruments and Services, Financial System and
Economic Development– Meaning and Process of Financial
Development– Criteria to Develop Financial Sector and Financial
Development.
2 CONCCEPT AND TYPES OF RISK AND RETURN: Meaning 5
of Risk, Risk-Return Trade-off, CAPM and Valuation
3 CENTRAL BANK OF INDIA: RBI: Functions, Roles, Monetary 3
Policy, Policy Developments– Challenges, Inflation Targeting.
4 SEBI AS A REGULATORY BODY: Genesis, Organization, 3
Objectives and Functions of SEBI.
5 COMMERCIAL AND COOPERATIVE BANKS: Commercial 5
Banks: Banking Operations, Innovations in Banking, Risk
Management in Banks, BASEL I, II and III. Cooperative Banks:
Features, Types and Challenges.
6 SMALL SAVINGS, PROVIDENT FUNDS AND PENSION 5
FUNDS: Small Savings- Introduction, Importance, Types and
Nature, Characteristics, Growth and Composition. Provident funds –
Rate of Return, Rules Regarding Investment, Growth of PF in India.
Pension Funds- Concept and Types.
7 INDIAN INSURANCE INDUSTRY: Insurance Sector Reforms, 5
IRDA, LIC, Investment Pattern and Policy, Guiding Principles, GIC,
Risk Management in Insurance Companies, Risk Management
Process, Risk Based Capital.
8 UNIT TRUST OF INDIA AND MUTUAL FUNDS: Introduction, 6
Nomenclature, Investment Trust vis-à-vis Unit trust, Mutual Saving
Banks, Mutual Funds, Types of Schemes, Investment Pattern, Return
on Investment in Units (ROI), Money Market Mutual Funds,
Regulatory Framework, Problems and Prospects of Mutual
Funds Industry, Determinants of Mutual Fund Performance.
9 NBFCs: Overview, Nature, Categories, Importance, Structure, 4
Regulation, and Present Position. Loan Companies, Investment
Companies, Hire Purchase Finance, Lease Finance, Housing
Finance, Merchant Banks, Venture Capital Funds, Factoring, Credit
Rating, Depository and Custodial Services.
10 MONEY MARKET AND GILT-EDGED SECURITIES MARKET: 6
Call Money Market: Introduction, Meaning, Participation, Location,
Size of Call Money Market, Call Rates in India. T-Bills Market:
Types, Nature, Systems, Size and Participants. Commercial Bill
Market: Introduction, Bill of Exchange, Characteristics,
Classification, Factors Behind Under Development of This Market
Commercial Papers & Certificate of Deposits- CPs and CDs, Steps
Taken by RBI to develop CP and CD Market in India, Government
(Gilt-edged) Securities Market: Introduction, Nature and
Organization of Government Security Markets, Secondary Market
Transactions and Current Developments
Total Sessions 45
Recommended Resources
Essential Readings: Pathak, Bharti (2018). Indian Financial System. 5e. Pearson Publication.

Additional Readings: Khan, M Y (2019). Indian Financial System. 11e. McGraw Hill

Websites: www.moneycontrol.com

Assessment Method (Mapped with CO’s)

SL. Assessment Description Weightage Course Outcomes to be Assessed

No. method of in Marks
Duration
assessment
method
CO1 CO2 CO3 CO4 CO5 CO6

1 DSE During 0 NA
Semester
Examination
2 CP Class 5 √ √ √ √ √ Throughout
Participation the course
3 AS Assignment 0 NA
4 MP Mini- 20 √ √ √ √ √ 30
Project with
presentation
5 ST Surprise test 5 √ √ √ √ √ 3
to check the
basics
6 TC Tutorial 0 NA
Class
7 CA Case 15 √ √ √ √ √ Throughout
Analysis the course
8 AT Attendance 5 Physical & Mental Presence of the 30
student
9 SEE Semester 50 √ √ √ √ √ 3
End
Examination
If Level 4 and above, sample assessment questions to be given.