Financial institution & markets II

Paper Code: 
ECO 423(B)
Credits: 
4
Contact Hours: 
60.00
Objective: 

To develop an understanding of various issues related to finance & markets in India.

12.00
Unit I: 
Financial markets in India – Money market

•    Financial markets in India - structure
•    Indian money market – unorganized & organized sector : Composition
•    Call money market, Treasury Bills markets, Commercial Bills market  (meaning, types, merits & defects)
•    New money market instruments – meaning of Certificate of Deposit, Commercial Papers, inter bank participation instruments, repo instruments.
 

12.00
Unit II: 
Reform measures & structure of Indian capital market

•    Characteristics of Indian money market
•    Reform measures to strengthen the Indian money market.
•    Structure of Capital Market in India – Gilt Edged Market & Corporate Securities Market
•    New Issue Market, Secondary market - functions

A brief introduction to important Stock Exchanges in India
 

12.00
Unit III: 
Role & Problems of Capital Market in India

•    Role of capital market in India’s industrial growth
•    Factors contributing to the growth of capital market in India
•    Problems of Indian Capital Market – the pre reform phase
•    Strengthening the Capital Market – the post reform phase
 

12.00
Unit IV: 
Portfolio Analysis

Meaning of portfolio and risk

Portfolio Notion and Principles

Portfolio Theorie - Traditional and Modern

Concept of efficient Portfolio, Market Portfolio and Managed portfolio

12.00
Unit V: 
Other important issues

•    Financial services – features, classification
•    Merchant banking –definition, scope, problems
•    Credit rating – meaning & functions, Credit Rating Agencies in India -CRISIL, IICRA, CAREDCR, ONICRA
•    Credit Cards –meaning & types
 

Essential Readings: 
1. Gupta, Suraj B, Monetary Planning for India, Oxford University Press, Delhi.
2. Narendra Jadhav , Monetary Economics for India, Macmillan India Ltd., Madras.
3. Venugopal Reddy, Y, Monetary and Financial Sector Reforms in India, UBS                      Publishers’ Distributors Ltd., Chennai.
4. Bhole LM, Financial Institutions & Markets – structure, growth & innovations, Tata           McGraw Hill publishing co. ltd.
5. Gordon & Natrajan, Financial Markets & Services, Himalaya Publishing House.
6. Sundharam K.P.M, Money, Banking & International Trade, Sultan Chand & sons.
7. Khatri Dhanesh, Security Analysis and Portfolio Management, Macmillan Publishers        India Ltd, 2010.
Academic Session: 
2018-19
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