FINANCIAL INSTITUTIONS & MARKETS II

Paper Code: 
ECO 423 (B)
Credits: 
4
Contact Hours: 
60.00
Max. Marks: 
100.00
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 Theories – Traditional Portfolio Theory and Modern Portfolio Theory;
  • 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 (1986), Monetary Planning for India, Oxford University Press, Delhi.
  2. Narendra Jadhav (1993), Monetary Economics for India, Macmillan India Ltd., Madras.
  3. Venugopal Reddy, Y (2000), 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: 
2017-18
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