BA 4002

Financial Markets

HBS > Professional Electives > Financial Markets
Course ID
BA 4002
Level
Post Graduation
Semester
Semester III

OBJECTIVES:
• To understand the types and functions of the various financial markets in India, its instruments and Regulations.

UNIT I FINANCIAL MARKETS IN INDIA
Indian financial system and markets – structure of financial markets in India –Types-Participants in financial Market – Regulatory Environment, – RBI, CCIL, Common securities market, Money market, – Capital market – Governments philosophy and financial market – financial instruments

UNIT II INDIAN CAPITAL MARKET- PRIMARY MARKET
Primary Market – Primary market system – Types of scripts – Issue of capital: process, regulation pricing of issue, – Methods of floating new issues, Book building- Primary markets intermediaries: commercial banks, development banks, Merchant banker, issue managers, rat ing agencies etc – Role of primary market – Regulation of primary market.

UNIT III SECONDARY MARKET
Stock exchanges in India – History and development -listing – Depositaries – Stock exchange mechanism: Trading, Settlement, risk management, Basics of pricing mechanism – Player and stock exchange – Regulations of stock exchanges –Role of SEBI – BSE, OTCEI, NSE, ISE, – Role of FIIs, MFs and investment bankers –Stock market indices – calculation.

UNIT IV DEBT MARKET AND FOREX MARKET
Bond markets in India: Government bond market and its interface with capital market – Components of bond market – G-Sec, T-Bills, Corporate Bonds, Yield conventions, Role of primary dealers, Auction Markets – Pricing of Bonds
Introduction to Forex markets, basics in exchange rates theory – Forex risk exposures and basics of corporate forex risk management.

UNIT V MUTUAL FUNDS, DERIVATIVES MARKETS AND VENTURE CAPITAL AND PRIVATE
EQUITY

Mutual funds institutions in India. Types of mutual funds, Basics in portfolio management, Metrics of performance for fund manager
Introduction to Derivatives and the size of derivatives markets -Brief introduction to forwards, Options, Futures And Swaps. Role of VCs and PEs in financial markets – Venture capital and Private equity

TOTAL: 45 PERIODS

OUTCOMES:
• Understanding the basic concepts of the finance markets in India
• Identify the underlying structure and functions of Indian financial markets
• Familiarise the methods of issuing shares and the role of intermediaries in the primary market
• Learn about the trading mechanism in stock market
• Describe the instruments, participants and trading in debt market

REFERENCES :

1. Christopher Viney and Peter Phillips, Financial Institutions, Instruments and Markets (2015), 8th Edition published by McGraw Hill.
2. Pathak, Bharati V., Indian Financial System: Markets, Institutions and Services, Pearson education (Singapore), New Delhi, Fourth edition, 2014.
3. Saunders, Anthonu and Cornett, Marcia Millon, Financial markets and Institutions: An Introduction to the risk management approach, McGrawHill, Irwin, New York,3rd Edition,2017.
4. Bhole, L.M, Financial institutions and Markets: Structure, Growth and Innovations, McGrawHill, New Delhi, Sixth edition, 2017.
5. Fabozzi, Frank J. and Modigliani, Franco, Capital Markets: Institutions and Markets, Prentice Hall of India, New Delhi, Fourth edition, 2009.