FINANCIAL INSTITUTIONS & MARKETS-II

Paper Code: 
ECO 423 (B)
Credits: 
4
Contact Hours: 
60.00
Max. Marks: 
100.00
Objective: 

1.      To develop an understanding of various issues related to money market in India.

2.      To acquaint the students with the various aspects of Capital market in India.

3.      To describe the theoretical aspects of portfolio analysis.

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.      Bhole LM (2017), Financial Institutions & Markets – structure, growth & innovations, Tata McGraw Hill publishing co. ltd. (6th edition)

2.      Gordon &Natrajan (2018), Financial Markets & Services, Himalaya Publishing House (11th edition)

3.      Sundaram, K.P.M. (2010).Money, Banking, & International Trade. Sultan Chand & Company.

References: 
  1. Rangarajan, C. (1999). Indian Economics: Essays on Money and Finance, UBS Publishers.
  1. Mithani, D.M. (2018) Money, Banking, International Trade & Public Finance. Himalayan Publishers.
Academic Session: 
2022-23
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