Course Objective:

The course aims at equipping students with an ability to understand the primary market and secondary market thoroughly. It gives exposure about money market, depository system, and about Indian Financial System in detail. The course elaborates about financial institutions such as RBI, World Bank, IMF etc. The course also highlights the importance of role of central bank in Financial Markets, SEBI guidelines on primary market and secondary market investments, and financial sector reforms. The course provides practical exposure about trading on GSec, Currencies, Commodities, Index and Stock F&O, also introduces to Renewable Energy Certificates (RECs).

Course outcomes (COs):

By the end of this course, students should be able to:
1. Understand the importance of new issue market.
2. Explore in detail the mechanics of stock markets.
3. Examine how to invest in IPOs and trade in Indian Stock Market.
4. Describe the importance of money markets.

Pedagogy:

• The course will be taught through a mix of simulation, cases and lectures.
• Power Point Presentation will be employed by the instructor wherever necessary.

Module-wise Distribution:

Module 01: Financial System
Financial System: Introduction, Components of Indian Financial System, Institutions, Instruments, Market & Services, Nature and Role of Financial System in Economic Development, Financial Sector Reforms.

Module 02: Capital Market
Capital Market: Constituents, Functions, Capital Market Instruments, New Issue Market, Private Placement, Secondary Market: Stock Exchanges, Rules and Regulations of Trading and Settlement, Listing of Shares, Depositories System, Securities and Exchange Board of India, Regulation and Investor Protection, Stock Market Reforms.

Module 03: Money Market
Money Market: Constituents and Functions, Types of Money Market, Government Securities Market, Money Market Instruments, Regulations of Money Market in India.

Module 04: Financial Institutions
Financial Institutions: Banking, Securities and Insurance Sector Financial Institutions, Role of Central Bank in Financial Markets. Changing Role of International Financial Institutions (World Bank, IMF etc.) and contemporary developments in domestic and international financial markets.

Reference books (Ref.):

1. Financial Services – MY Khan, 5th Ed., TMH, 2018.
2. Financial Markets and Institutions – Anthony Saunders and MM Cornett, McGraw Hill International Edition, 2019.
3. Financial Institutions & Markets – Jeff Madura, Cengage Learning – Latest Edition.
4. An Introduction to Financial Markets and Institutions – Maureen Burton Reynold F. Nesiba Bruce Brown – Routledge - Latest Edition.
5. Financial Services – Dr. Gurusamy Mapping of POs to COs for Financial Markets Course of 4th Trimester