Syllabus (COMMERCE)

Course Type: MDC-2

Semester: 2

Course Code: BMDCCOM02T

Course Title: Financial Institutions and Markets

(L-P-Tu): 3-0-0

Credit: 3

Practical/Theory: Theory

Course Objective: The objective of this paper is to introduce students to the different aspects and components of financial Institutions and financial markets. This will also enable them to take the rational decision in financial environment. Another objective is to introduce students to the world of financial services. Students will enrich about the fundamental concepts and working of financial service institutions and will gain necessary knowledge and skills to become employable in the financial service industry.

Learning Outcome: Student will be able to understand the: • Financial architecture of an economy and its key players. • The fabrication of Indian Financial markets. • The process of Money movement both in intermediated and disintermediated • environment • Functioning of different players in the financial market including Regulators like • RBI and SEBI.

Unit 1: Introduction (Lectures:10 )

Financial System and its Components; Financial markets and institutions; Financial intermediation; Flow of funds matrix; Financial system and economic development; An overview of Indian financial system

Unit 2: Financial Markets (Lectures:10 )

Money market - functions, organisation and instruments; Role of the central bank in the money market; Indian money market - An overview

Capital Markets - functions, organisation and instruments; Indian debt market; Indian equity market - primary and secondary segments; Role of stock exchanges in India.

Unit 3: Financial Institutions (Lectures: 15)

Commercial banking - introduction, its role in project finance and working capital finance; Development Financial Institutions (DFIs) - An overview and role in Indian economy; Mutual Funds - Introduction and their role in capital market development; Non-banking financial companies (NBFCs).

Stock Exchanges: Role of Stock Exchanges in Security Trading; Role of Brokers and Sub-Brokers in Security Trading; Major Stock Exchanges in India (BSE, NSE); Concept of Stock Market Indices including sectoral indices; Listing of Securities on a Stock Exchange; Clearing and Settlement; Present Screen-Based Computerized Trading; Scrip-less Trading;

Unit 4: Financial Services (Lectures: 10)

Overview of financial services industry; Merchant banking - pre and post-issue management, underwriting; Regulatory framework relating to merchant banking in India. Insurance: Concept, Functions, Characteristics of Insurance, History of Insurance in India, Life Insurers and Non-life Insurers registered in India, Concept of Reinsurance, Scheme of Insurance Ombudsman.

Reading References:

Agarwal, O.P., Management of Financial Services, Markets & Institutions, Himalaya Publishing House.

Appannaiah, Reddy & Sharma, Indian Financial System, Himalaya Publishing House.

Avadhani, V.A., Financial Services in India, Himalaya Publishing House.

Benson, K.K. & Mohanan, S., Financial Institution and Services, Kalyani Publishers.

Bhole, L.M., Financial Institutions and Markets, Mc-Graw Hill Education.

Desai, Vasant, Indian Financial System and Financial Market Operation, Himalaya Publishing House.

Dutta, Abhijit, Indian Financial System, Excel Books.

Gordon, E. & Natarajan, K., Financial Markets and Institutions, Himalaya Publishing House.

Gordon, E. & Natarajan, K., Financial Markets and Services, Himalaya Publishing House.

Gupta, S.K., Agarwal, N. & Gupta, N., Financial Market Operations, Kalyani Publishers.