Introduction: Financial market relates to a mechanism, which enables people to trade financial securities such as bonds, stocks as well as commodities in the market. The course includes financial assets, markets, and institutions; debt & equity markets; foreign exchange market and financial management.

Learning Objective: The Course aims at providing the students, basic knowledge about the Finance concepts, markets and various services provided in those markets. The syllabus is structured in a way which provides adequate information about the roles of intermediaries and its regulating bodies.

Learning Outcome: After studying this course, the students will be able to:

  • make  judgement about whether or at what extent a financial market satisfies the conditions of an efficient market
  • identify the main factors that could detract from that efficiency.

Unit I: FINANCIAL MARKETS: STRUCTURE AND ROLE IN THE FINANCIAL SYSTEM

1.1: Financial system structure and functions

1.2: Financial market regulations

1.3: Financial intermediaries and their functions

1.4: Financial markets structure – Financial Instruments and Classification of financial markets

Unit II: MONEY MARKETS

2.1: Money market purpose and structure .

2.2: The role of money markets

2.3: Money market segments

2.4: Money market participants

2.5  Indian Money  Market

2.6Money market instruments- Treasury bills and other government securities; The interbank market loans; Commercial papers; Repurchase agreements; International money market securities.

 

Unit III: DEBT MARKETS

3.1: Debt market instrument characteristics

3.2: Bond market characteristics

3.3: Bond market yields.

3.4: Bond valuation

Unit IV: EQUITY MARKET

4.1: Equity instruments- Equity shares, Preferred shares, Private equity, Global Shares and American Depository Receipts (ADRs).

4.2: New Issue Market

4.3: Secondary Equity Market

Unit V: INDIAN CAPITAL MARKET

5.1: Origin of Indian Capital Market

5.2:  Stock Exchanges in India- BSE (Bombay Stock Exchange); NSE (National Stock Exchange).

5.3: Capital Market Regulator- SEBI (Securities and Exchange Board of India) and its functions.

5.4: Noteworthy Developments- Financial Intermediation, Underwriting of Securities, Growth in Response to the Offer of Public Issues of Shares and Bonds, Growth of Merchant Banking and Growth of Credit Rating Agencies.

Suggested Book:

Financial Market Operations: AlokGoyal and MridulaGoyal, V.K. Global Publications

Financial Services & Market-G S Batra

Financial Institution & Market-I M Bhole

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