FINANCIAL INSTITUTIONS AND MARKETS

Paper Code: 
24MFM 321
Credits: 
4
Contact Hours: 
60.00
Max. Marks: 
100.00
Objective: 

This course will enable the students to get an insight about financial institutions and financial markets.

 

Course Outcomes: 

Course

Learning outcome

(at course level)

Learning and teaching strategies

Assessment Strategies

Course Code

Course

title

 

24MFM321

Financial Institutions and Markets (Theory)

CO313 Explore Indian financial system and examine the role of various types of financial institutions.

CO314 Explore the functions of the Money Market, various types of Money Market instruments and analyze tools for managing liquidity in the Money market

CO315 Analyze functions of Capital market and development of Stock Market, calculate Stock market indices

CO316 Explore instruments traded in Debt market and assess tools of managing liquidity in the Government Securities Market

CO317 Examine role of RBI and SEBI as regulatory institutions and explore emerging challenges and issues in the financial markets.

CO318 Contribute effectively in course-specific interaction

 

Approach in teaching:

Interactive Lectures, Group Discussion, Tutorials, Case Study

Learning activities for the students:

Self-learning assignments,

presentations

Class test, Semester end examinations, Quiz, Assignments, Presentation

 

12.00
Unit I: 
Financial Institutions

Indian financial system-Components and functions, Financial Intermediation-Meaning Rationale, Importance; Categories of financial institutions – Depository Institutions (Commercial Banks and Cooperative Banks-Functions, Composition of SCB Balance Sheet) and Non-Depository Institutions (Finance companies -Development financial institutions, NBFCs and Housing Finance companies, Insurance companies and Mutual Funds) 

12.00
Unit II: 
Money Market

Introduction, Functions of the Money Markey, Money market instruments: Call/Notice money, T bills, Commercial bills, Commercial papers, Certificate of deposits; Role of RBI in the Money Market, Steps to develop the Money Market in India, Tools for managing liquidity in the Money market (Reserve Requirements, Interest rates, Base rate, Standing Liquidity facility for Banks/Primary dealers, Bank rate, Repos)

 

12.00
Unit III: 
Capital Market

Functions, Classification-Primary and Secondary Capital Market, Primary Market – Methods of raising funds- Public issue, Rights issue, Private Placement, Preferential Issue; Secondary market –Functions, Development of Stock Market in India, Post-reform market scenario, Organization, Management and membership of Stock Exchanges, Demutualization of Stock Exchanges, Stock Market Index-Calculation, Global Stock Market Indices, Major Indices in India

12.00
Unit IV: 
Debt Market

Introduction, Characteristics, Participants, Link between the Money market and the Debt market, Types of Instruments traded, Primary and Secondary segment of the Debt market; The private corporate debt market, PSU Bonds market; Government securities market-Introduction, Importance, Issuers, Investors and types of Government securities, Retailing of Government Securities, Tools for managing liquidity in the Government Securities Market

12.00
Unit V: 
Regulatory Institutions

Reserve Bank of India (RBI)-Objectives, Role and functions; The Securities and Exchange Board of India (SEBI)- Scope, power and Functions; Emerging Issues and Challenges in the financial markets, Effectiveness of regulators like RBI and SEBI in controlling Money market and Capital market.

*Case studies related to entire topics are to be taught.

Essential Readings: 
  • Bharti V. Pathak, The Indian Financial System, 5th Edition, Pearson, 2018.
  • Meera Sharma, Management of Financial Institutions (With emphasis on Bank and Risk Management, PHI
  • Bhole.L.M. “Financial Markets and Institutions’ Tata Mc Graw Hill, New Delhi

 

References: 

Suggested Readings:

  • Srivastava R.M.- “Management of Indian Financial Institutions”, Himalaya Publication, New Delhi
  • Kohn Meir, Financial Institutions and Markets, Oxford University Press, 2013.
  • Mishkin, Stanley G. Eakins, Financial Markets and Institutions, 9th Edition, Pearson, 2018.
  • Vasant Desai, “Indian Financial System”, Himalayan Publication
  • M.Y. Khan, Indian Financial System, Tata McGraw Hill Education, 9th Edition, 2015.
  • Sarkhel & Salim, Indian Financial System & Financial Market Operations, McGraw Higher Education, 2017.
  • Bharti V. Pathak, The Indian Financial System, 5th Edition, Pearson, 2018.

E Resources:

Journals:

 

Academic Year: 
2024-2025
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