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FINANCIAL INSTITUTIONS & MARKETS-II
Paper Code:
ECO 423 (B)
Credits:
4
Contact Hours:
60.00
Max. Marks:
100.00
Objective:
Course Objectives:
The objectives of this course are-
- To develop an understanding of various issues related to money market in India.
- To acquaint the students with the various aspects of Capital market in India.
- To provide theoretical knowledge of portfolio analysis.
Course Outcomes (COs):
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Course |
Outcome (at course level) |
Learning and teaching strategies |
Assessment Strategies |
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Paper Code |
Paper Title |
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ECO 423(B) |
Financial Institutions and Markets-II |
CO62: Acquire the knowledge of the working and role of money and capital markets. CO63: Understand the concepts of portfolio management, merchant banking and credit rating. |
Approach in teaching: Interactive Lectures, Discussion, Case studies.
Learning activities for the students: Presentations, Assignments and Group discussions. |
Class activity, Assignments, Quiz and Semester end examinations. |
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:
- Gupta, Suraj B, Monetary Planning for India, Oxford University Press, Delhi.
- Jadhav , Narendra, Monetary Economics for India, Macmillan India Ltd., Madras.
- Venugopal Reddy, Y, Monetary and Financial Sector Reforms in India, UBS Publishers’ Distributors Ltd., Chennai.
- Bhole LM, Financial Institutions & Markets – structure, growth & innovations, Tata McGraw Hill publishing co. ltd.
- Gordon & Natrajan, Financial Markets & Services, Himalaya Publishing House.
- Sundharam K.P.M, Money, Banking & International Trade, Sultan Chand & sons.
- Khatri Dhanesh, Security Analysis and Portfolio Management, Macmillan Publishers India Ltd, 2010.
Academic Session:
