COURSE CODE NO: BB506 HOURS PER WEEK: 5 THEORY
COURSE TYPE: ELECTIVE 1 CREDITS: 5
COURSE TITLE: FINANCIAL MARKETS AND SERVICES
Instructor: Ms. Payal Pattnayak
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. The course also provides information about the prevailing financial system in India.
COURSE OUTCOMES:
CO1:- Understand the role and function of the financial system in reference to the macro economy.
CO2:-Demonstrate an awareness of the current structure and regulation of the Indian financial services sector.
CO3:- Evaluate and create strategies to promote financial products and services of Primary and secondary market.
CO4:- The student will be able to understand the financial system and financial services in particular and their functioning, role in the economic development of a country.
CO5:- Student will be able to make an informed judgement about whether or to what extent a financial market satisfies the conditions of an efficient market.
CO6:- Student will appreciate the benefits of financial instruments: bonds, stocks, currencies, and derivatives (futures, options, swaps).
CO7:- Students will be able to recognize Diversification: how to select a portfolio of securities that maximizes return while minimizing risk.
CO8:- Student will able to understand Non- Fund Based Financial Services – Credit Rating, Factoring and Forfaiting, and Merchant Banking
CO9:- Student will able to understand the working of leasing, hire purchase and venture capital.
CO10:- Students will be able to understand the asset management industry and its key players such as mutual funds.
.
SCOPE OF THE COURSE
UNIT - I: STRUCTURE OF INDIAN FINANCIAL SYSTEM:
Indian Financial System – Structure, Functions, Types of Financial Markets, and Securities traded in Financial Markets, Regulatory Institutions and their functions– RBI & SEBI, Global Financial Markets
UNIT - II: PRIMARY AND SECONDARY MARKET:
Primary Market – Introduction, Book Building, Free Pricing, Underwriting, On-Line IPOs, e- Prospectus; Secondary Market – Organization of Stock Exchanges, NSE, BSE and OTCEI, Listing of Securities, Trading and Settlement, Internet Trading, New financial instruments.
UNIT - III: LEASING AND HIRE PURCHASE :
Asset/ Fund Based Financial Services – Leasing, Concept and classification, Advantages and Limitations, Hire Purchase – Definition, mechanism, Differences between Leasing and Hire Purchase, Venture Capital – Definition, Rationale, stages of financing.
UNIT - IV: NON FUND FINANCIAL SERVICES:
Non- Fund Based Financial Services – Credit Rating, Factoring and Forfaiting, Merchant Banking – Definition, Features, Mechanism, Types.
UNIT - V: MUTUAL FUNDS:
Mutual Funds – History, Definition, Classification, Advantages and Disadvantages, Estimating the Net Asset Value, Mechanics of MF Operations, Functions of AMC, Evaluating Mutual Funds.
ASSIGNMENT:
Working in a group of two, students have to select any Financial Intermediary and analyze the roles and Functions of it using PowerPoint Presentation.
GUIDELINES ON CLASS PARTICIPATION:
The class is based on discussions, activities and examples. Students are expected to throw away their inhibitions and be participative in class. Every time an assignment is given, students need to come prepared with the work. Students are also expected to be well read about the world of business and marketing as it will help them immensely in class discussions.
ASSESSMENT SCHEDULE:
There will be
· Two internals will be held. Each internal will be of 15 marks each for 30 minutes duration.
Section A: Multiple choice questions (10 questions of ½ marks each.)
Section B: Fill in the blanks (10 questions of ½ marks each.)
Section C: Short answers (5 questions of 1 mark each.)
·
One
end semester exam – conducted by OU
BOOKS:
1. Vasant Desai, Financial Markets and Financial Services, Himalaya Publishing House
2. Madura,Financial Institutions and Markets, Cengage Learning
3. M.Y. Khan, Financial Services, Mc Graw Hill
4. Dr. S.Guruswamy, Financial Services and Markets, Thomson
5. L.M.Bhole and Jitendra Mahakud, Financial Institutions and Markets, Mc Graw Hill
TEACHING METHODOLOGY:
· Lecture – chalk and talk method
· Discussion – group discussion/brain storming
· PowerPoint presentation
- Teacher: Dr PAYAL PATTNAYAK