BTI Program Brochure

8/16/2019 BTI Program Brochure

1/39

BSE Training Programmes

1. Advanced Programme on Derivatives (2 Days):

Day - 1

• Basics: Futures Product Specifications, Open Interest, Mark-to-Market

Margining Other Derivatives: Interest Rate Futures, Swaps, and FRAs

Option asics: !oncept, "i#e Deca$% Strike prices asic Put-!a&& strategies

• Strategy: Futures: Stock and Inde' Futures, asket - Pair "rading, asis "rading

• Synthetics: S$nthetic !a&& and Put strategies, S$nthetic Futures Strategies

• Strategy: Spread Strategies% ('otic Strategies% !overed !a&& Strategies

Day - 2

• Pricing: Futures Pricing, Option Pricing, A#erican and (uropean Options Pricing, Dividend

and non-Dividend Pa$ing Stocks

• Arbitrage and edging: Futures - Futures and !ash - Futures% Options Ar)itrage

*edging: "$pes of Risk% Protective Put, Fencing Strategies, Portfo&io *edging Strategies,

"ai&ing the *edge - !ase - +ive Portfo&io

• Strategy - !ree"s: De&ta eutra& strategies, De&ta - a##a neutra&it$, De&ta v.s "i#e% De&ta

v.s /o&ati&it$% a##a v.s "i#e and /o&ati&it$, /ega, "heta and Rho% /o&ati&it$ "rading

Strategies0

• #orecasting using Options and Futures: Put - !a&& Ratio% /o&ati&it$ Forecasting

Futures: Forecasting Strategies: Open Interest - /o&u#e and Price Patterns, /o&ati&it$ Inde'

2. Advance Programme on Stoc" $ar"et (1 $onth):

1. #%ndamenta&s Ana&ysis

• (cono#ic Ana&$sis 1 Industr$ Ana&$sis

• !o#pan$ Ana&$sis

• Interpretation of Financia& State#ents

• Ratio Ana&$sis

• !ash F&ow Ana&$sis 1 /a&uation of (2uit$

• Market D$na#ics

2. #inancia& Statement Ana&ysis

• 3nderstanding Financia& State#ents

Profit and +oss State#ent

a&ance Sheet

Funds F&ow State#ent

• 3nderstanding inconsistenc$ in financia&s and their ad4ust#ents

• I#pact of corporate actions on financia&s

5


2/39

• Interpretation 1 app&ication of different ratios

• !ase studies

'. Technica& Ana&ysis

• Introduction to "echnica& Ana&$sis

• Patterns

• Moving Averages

• Osci&&ators

• Introduction to !and&esticks

• Mone$ Manage#ent

. $%t%a& #%nds

• Introduction to Mutua& Funds

• Investing In Mutua& Fund "he Process

• SIP 1 Mode& Portfo&io

•

A/, Pricing, /a&uation Accounting 1 "a'ation• Portfo&io Manage#ent !o#parative Ana&$sis

. Derivatives

• Introduction to Derivatives

• Introduction to Futures 1 Options

• "ransaction 6a&kthrough

• Option Pricing and Option reeks

• Derivative Strategies

'. ASBA (A**&ication S%**orted by B&oc"ed Amo%nts)

SE+T, , / vervie0 o the ASBA *rocess

• Idea )ehind introduction of the ASA

• "he regu&ators7 point of view

• "he e'perience so far 8 Phase I

• Phase II 8 i#p&e#entation ti#e&ine, cha&&enges and ne't steps

SE+T, ,, / ,Ps *ost ASBA

• Invest#ent )anker7s e'periences with ASA

• enefits to various stakeho&ders 8 issuers, registrars, #erchant )ankers

• I#pact on post issue ti#e&ines 8 #ediu# to &ong ter#• 9e$ cha&&enges and possi)&e so&utions 8 case stud$ of *P!

• Regu&ator$ wi&& and a#end#ents re2uired prior to and to operationa&ise Phase II and

thereafter

SE+T, ,,,/ Processes re&ating to ASBA

• +ife post introduction of Phase I of ASA- ro&es and responsi)i&ities of various parties-

Registar and )anks


3/39

• Process changes re2uired for phase II

• 9e$ differences )etween the e'isting non ASA and ASA for#ats

• ('periences and ne't steps

. A%tomobi&e ,nd%stry - An Ana&ysts Pers*ective

A%tomobi&e ,nd%stry basics

• !o#parison of industr$ across various econo#ies

• Significance of the industr$ fro# econo#ic perspective

• Regu&ator$ structure

• P&atfor# and #ode& deve&op#ent

• Auto anci&&ar$ industr$ 8 &inkages

,nd%stry Str%ct%re

• !o##ercia& /ehic&es

• Passenger /ehic&es

• Seg#enta& c&assification

• S3/s

• "ractors and specia&i;ed vehic&e seg#ent

• Porter7s five force ana&$sis

• Supp&$ !hain

• !usto#er )argaining power

• !o#petitive intensit$

• (ntr$ )arriers

• "hreat of su)stitutes

B%siness +haracteristics

• !apita& intensit$

• Margin profi&es

• /o&u#e profi&es

• Industr$ &everage

• !ost structure co#parison

• /a&uation approach se&ection

3a&%ation E4ercise

• Maruti Su;uki India +td

• Annua& report stud$

• Financia& Mode&ing

• /a&uation

• *ero *onda +td

• Annua& report stud$

• Financia& Mode&ing


4/39

• /a&uation

• "ata Motors +td, =('a#ination e'ercise>

Trac"ing the a%to sector

• Macroecono#ic factors to watch

•!o#pan$ specific factors to watch

• Making the re&ative invest#ent choice

. Ban"ing 5or"sho* n ASBA (A**&ication S%**orted by B&oc"ed Amo%nts) PASE ,,

Part , / vervie0 o ASBA

• 6hat and how of ASA 8 Idea& road#ap to ASA

• Introduction to Phase II of ASA

• enefits of ASA 8 to a&& participants, inc&uding the )ank

• *ow shou&d it )e popu&ari;ed

• 6hat steps is S(I taking to popu&ari;e ASA

Part ,, : ,m*&ementation o ASBA /*hase , 6 ,,• ('periences of the )anks in Phase I

• ('pectations fro# a&& participants 8#erchant )anks, registrars, S(I. S( etc0

• Read$ing for Phase II - things to )e done techno&og$, process, #anpower, etc

Part ,,, (7egistrar)

• Instructions 8 detai&ing the re2uire#ents fro# the )anks

• Discussing the #ateria& changes for Phase II /is a /is Phase

Part ,3 / ASBA *rocess (,nvestment Ban"er)

• ('periences so far • "he process road#ap

• ('pectations fro# the )anks in the Pu)&ic. Rights issue process

Part 3 / Demo on ASBA

Part 3, / Stoc" E4changes

• e't steps

• Su##ing up

8. Basic +o%rse on Stoc" $ar"et

Secondar$ Markets, "rading !&earing and Sett&e#ent, Ro&&ing Sett&e#ent, O+", Mutua& Funds,

De#ateria&i;ation of Shares, Survei&&ance, Sense' and Other Indices, Futures and Options, Pri#ar$

?


5/39

Markets, ook ui&ding 1 IPOs, +isting, De)t Market, Investors@ rievances Redressa& S$ste#s of S(, Funda#enta& Ana&$sis, "echnica& Ana&$sis0

9. Basic Programme on Derivatives

at%re o inancia& derivatives inc&%ding %t%res and o*tions

!haracteristics of derivatives, 3nder&$ing assets =(2uit$, onds.+oans, Foreign !urrenc$, and

!o##odit$> eed for derivatives, "$pes of derivatives and co#parison )etween the#, Forwards.

Futures. Options, Participants in the derivatives #arket =*edgers, Specu&ators, Ar)itrageurs>

Princi*&es o trading and hedging 0ith ,nde4 #%t%res

"er#ino&og$ - Spot, future price, contract specifications, contract c$c&e, e'pir$ date, sett&e#ent date, )asis, #ark to #arket, !ontract specification for S( Sense', "ick si;e, "$pes of orders, "rading

strategies, *edging Strategies, Initia&, Maintenance Margins, ('ecuting and !&earing, ('ecution,

Matching confir#ation, !&earing Mechanis#, Sett&e#ent, Sett&e#ent price, Sett&e#ent c$c&e, !ashv.s Ph$sica& de&iver$, Open interest and "rading vo&u#es

Princi*&es o trading and hedging 0ith *tions

"er#ino&og$ - ca&&, put, writer, )u$er, pre#iu#, intrinsic va&ue, ti#e va&ue, e'pir$ date, sett&e#ent

date, strike price, A"M, O"M 1 I"M, "he reeks - =De&ta, a##a, "heta, /ega>

7is" $anagement Systems and Proced%res

"$pes of risks =!ounter-part$ or credit risks, Market or price risks, +i2uidit$ risks, +ega& and

regu&ator$ risks, Operating risks>, Risk identification and #easure#ent, Methods of risk contro&

=Position &i#its, /AR, Margins, Operating Procedures and s$ste#s etc0>, Separation of trading,sett&e#ent, accounting and risk contro& functions, Interna& contro& structure and Manage#ent

Infor#ation S$ste#, Regu&ator$ and e'terna& reporting0

.Basic Programme on Technica& ana&ysis

"echnica& ana&$sis0 6hat is technica& ana&$sisB 6h$ technica& ana&$sisB !o#parison with

funda#enta& ana&$sis, Integration of technica& and funda#enta& ana&$sis, asics of technica& ana&$sis,!onstruction of charts, )ar. &ine, Arith#etic.&ogarith#ic, Price, /a&ue, "i#e, "rend-&ine, !hanne&,

Fan &ine, Support Resistance, Retrace#ents0 Reversa& and !ontinuation Pattern, Moving Averages,

Mo#entu# Osci&&ators, Capanese !and&e Sticks

;. Basic Programme on Technica& ana&ysis in !%


6/39

• "rading, !&earing 1 Sett&e#ent

• Introduction to O+", *ardware 1 etworking

• Features of O+"-De#onstration

• "rading through O+"-De#onstration

11. +ommodity 6+ommodity Derivatives:

Day - 1

• Introduction to the !o##odit$ Sector

• &o)a& !o##odit$ Market D$na#ics

• Indian !o##odit$ Market Status and Prospects

• Ro&e of overn#ent, Institutiona& 1 Regu&ator$ Fra#ework

• !o##odit$ ('changes: Functions, Me#)ership, "rading, !&earing, +ega& 1 "a'ation Issues

• !o##odit$ Specific ('change or Mu&ti- !o##odit$ ('change

• S$nerg$ )etween (2uit$ and !o##odit$ Markets, Migration fro# one #arket to another

• Product and Market 9now&edge 1 Ro&e of Infor#ation

Day - 2

• Overview of various derivatives #arket across the products

• Options and !o##odit$ Product Structuring

• Rationa&e of !o##odit$ Futures

12. +om*&iance 7e?%irements or $ember Bro"ers

• Me#)er-)rokers !o#p&iance with S(I = Stock rokers and Su) rokers> Ru&es, 5EE,

Ru&es, $e-&aws 1 Regu&ations of S(, otices, !ircu&ars issued )$ S( and S(I

• 6orking of the Inspection Depart#ent of S(

• Areas covered during an inspection audit0

• or#s for i#position of fines and pena&ties0

• !o#p&iance with other a&&ied re2uire#ents of the Inspection Depart#ent0 vi;0, Su)#ission of

Audit Report, Annua& Accounts, et 6orth !ertificate, Margin !ertificate and 3ni2ue !&ient!ode0

1'. +om*rehensive Programme on E?%ity 7esearch

#inancia& Statement Ana&ysis

+earn the #ethods used )$ ana&$sts to eva&uate past, current and pro4ected conditions

and perfor#ance of the fir# using techni2ues &ike hori;onta& ana&$sis, vertica& ana&$sis and ratioana&$sis0


7/39

Basic and Advanced 3a&%ations

!andidates wi&& )enefit and gain fro# va&ua)&e insights to va&uation too&s used )$ u$ Side.Se&& Side

ana&$sts and Invest#ent ankers0 So#e ke$ areas of focus wi&& )e Discounted !ash F&ows, Su# of

Parts /a&uation, (2uit$ and (nterprise /a&ue Mu&tip&e va&uations

#inancia& $ode&ing

Financia& Mode&ing is the ke$ )ui&ding )&ock re2uired in toda$@s )usiness, )anking and financia&services wor&d0 In this #odu&e $ou wi&& &earn to Identif$ and uti&i;e ke$ )usiness drivers and

integrate the# into a three state#ent forecasting #ode&0 Financia& Mode&ing he&ps in effective&$

co##unicating the resu&ts of $our #ode&s to c&ients and senior #anage#ent

Advantage E4ce&

+earn a)out powerfu& in)ui&t functions in e'ce& that he&ps $ou to save ti#e and work efficient&$

1. +om*rehensive Programme on Technica& Ana&ysis ( 5ee" Part Time)

$od%&e 1: Introduction to "echnica& Ana&$sis, 6hat it isB 6h$ and how it worksB "he concept of support and resistance, !hart t$pes and sca&ing, Dow "heor$, Retrace#ent and Pro4ections,

Fi)onacci u#)ers, "rend &ine S$ste#s

$od%&e 2: Reversa& Patterns, !ontinuation Patterns, !and&e Stick Patterns

$od%&e ': Moving Average S$ste#s

$od%&e : Osci&&ator asics, Osci&&ator Studies

$od%&e : Introduction to (&&iot 6ave, Designing Ana&$sis Fra#ework, Designing "radingFra#ework

1. +redit Derivatives

#irst Session

50 !redit Derivatives Overview

• 6hat7s credit risk

• 6hat7s a credit derivative

• "he eed for !redit Derivatives

• Market Description: Participants

• Market Description: eograph$

• Present !onstraints and the Future

0 !redit Defau&t Swaps

• Introduction to !DS

G


8/39

• !DS Mechanics

• !DS identification: specifications to )e provided

• "he econo#ics of a !DS

• Differences fro# Asset Swaps 8 Points 3pfront !DS

•

asket Pricing• Sensitivit$ of asket trades

• asket Swap Strategies

0 !DO

• (2uit$ "ranche

• Me;;anine "ranche

• Ratings of !DOs

• !orre&ation "rading

Third Session

50 !DS Structura& Road#ap

• asic Mechanics under ISDA Definitions

• Ph$sica& Sett&e#ent of !DS

• Asian 1 (uropean Market Practice

• Reference (ntit$

H


9/39

• !redit (vents

• Protection Period

• Reference O)&igation

• De&ivera)&e O)&igations

#o%rth Session

50 *edge Accounting

0 Overview of Docu#entation 1 Regu&ator$ Issues in !redit Derivatives

• anking ook

• "rading ook

• ase& II and !redit Derivatives

• ank capita& 1 !redit Derivatives

18. +%rrency #%t%res:

•

Introduction to !urrenc$ Futures

• Product Specifications 1 Ana&$sis, App&ications

• Risk Manage#ent

19. Debt $ar"ets:

• Mone$ Markets and De)t Markets in India

• Instru#ents and Market P&a$ers

• Regu&ator$ Fra#ework

• overn#ent Securities Market,• Pri#ar$ 1 Secondar$ Markets

• Ana&$sis of Macro (cono#ic Indicators of De)t Markets

• ond Mathe#atics

• ie&d !urve Ana&$sis

• "rading Strategies in De)t Markets0

1. Econometric A**&ications and Sim%&ations or #inancia& $ar"ets

• !haracteristics of distri)ution

• Dispersion and #easures of dispersion and re&evance to Risk Manage#ent50 Range

0 /ariance and standard deviation

• Pro)a)i&it$ distri)ution

E


10/39

• Mo#ents of Distri)ution with respect to ana&$sis on return

• Discreet pro)a)i&it$ distri)ution

• !ontinuous pro)a)i&it$ distri)ution0

50 Standard nor#a& Distri)ution

0 +ognor#a& distri)ution0


11/39

Day 2

+entra& Ban" and $onetary Po&icy

• Function of a centra& )ank

• 3nderstanding #onetar$ po&ic$

• "he Reserve ank of India

• ase& . IS

• Does inf&ation #atter

• Ana&$sis of a RI State#ent

Trade@ Ba&ance o Payments and #oreign E4change

• !urrent Account

• Financia& account and the )a&ance of pa$#ents

• !ase: Does the 30S0 need India or does India need the 30S0

• ('change rate po&icies in India

•

!ase: !hina =uan>

,nternationa& #inancia& ,nstit%tions

• Internationa& #onetar$ fund

• FII and its i#pact on India

• 6or&d )ank

• Proposa&s for do#estic and internationa& refor#s 8 with reference to current Indian scenario

• "opic: "he /o&cker Ru&e

2=. E?%ity Porto&io Str%ct%ring 6 Stoc" Ana&ysis

Progra# consists of Five Funda#enta& Modu&es

$od%&e 1: vervie0 o the Economy

India on the Move &o)a& Financia& !risis Reading the 3nion udget (&eventh Five ear

P&an Oi& Interest, Inf&ation and ('change Rate Savings, Invest#ent 1 !onsu#ptionInfrastructure oost Po&itics of (cono#$

$od%&e 2: $ar"et Dynamics

Sense' /a&uation FII I#pact +i2uidit$, Senti#ent, Mo#entu#, /a&ue Decoup&ing "heor$!orporate (arnings &o)a& !ues +i)era&i;ation, Privati;ation and &o)a&i;ation +everaging

the India Stor$ Derivative P&a$ India /ision L

$od%&e ': 3a&%ation

"i#e /a&ue of Mone$ Interpretation of Financia& State#ents for Stock Ana&$sis Re&ative

/a&uation A)so&ute /a&uation !onte#porar$ /a&uation Price /.s /a&ue

55


12/39

$od%&e : Porto&io A&&ocation 6 +onstr%ction

Direct (2uit$ v.s Mutua& Funds: Interesting Ang&es !&ient7s Risk Profi&ing Investor Mistakes

I#proper Fra#ing, Anchoring, *erding etc Invest#ent Approaches Investor urus 6arren

uffett 1 Peter +$nch +ogica& "hinking a#e P&a$s Return 1 RiskPortfo&io A&&ocationPortfo&io !onstruction Portfo&io Measure#ent *edging

$od%&e : Adding 3a&%e to +&ient 7e&ationshi*s

Integrit$ "ests Awareness of !onte#porar$ 1 !ontroversia& Issues Insider "rading Street

S#artness Jui; Managing Sensitive Accounts (va&uating Financia& Products v.s Peer Offers

Suita)&e Stock Se&ection 1 Portfo&io !hurning oosting 1 a&ancing )oth (#p&o$er 1 !&ientInterests

21. ET#s and ,nde4ing #%ndamenta&s

• 6h$ ("Fs are a )ig hit wor&dwide

• Introduction to inde'ing, what is inde'ing, what do o)e& &aureates and Invest#ent gurus

think a)out inde'ing, *ow is inde'ing faring in India /s active fund #anage#ent through a

)reak through report 8 N "he #$th of eterna& a&fa N

• ('act definition of ("Fs, origin, wor&dwide growth, working #echanis#, how to )u$ and

se&&

• Differences )etween ("Fs and open ended inde' funds

• ("Fs in India inc&uding go&d ("Fs and their )enefits

• *ow ("Fs can )e used

• Investor ps$cho&og$ specia& : *ow to get rid of destructive invest#ent )ehavior and adapt

e#powering )ehavior to )etter achieve financia&

22. #inance And Acco%nts or on #inance E4ec%tives

• 5hat is #inance 5hat is acco%nting 6hat are Financia& State#entsB a&ance Sheet, P

1 + Account, !ash F&ow, *ow to read Financia& State#entsB 3nderstanding financia&strengths and weaknesses, Financia& Ratio Ana&$sis, +i2uidit$ versus Profita)i&it$,

Overtrading, under capita&i;ation

• 5or"ing +a*ita& $anagement - !ash, Receiva)&es, Inventories, +oans and Advances,

Supp&iers Manage#ent

• B%siness as an economic entity - difference )etween fir#, partnership and co#pan$ =)oth

pu)&ic and private co#panies>0 Me#orandu# and Artic&es of Association0 !oncept of trading

and #anufacturing - va&ue creation0

5


13/39

• ('tensive discussions on co##on shares, preference shares, de)entures, h$)rid instru#ents

&ike converti)&es, warrants, #one$ #arket instru#ents &ike !Ps, )ank financing, factoring,

forfeiting, )i&& discounting etc0 !o#parative ana&$sis of various sources of funds -

co#petitive advantages and disadvantages0 Discussion on authori;ed capita&, su)scri)edcapita&, issued capita&, paid up capita& etc0

• 3nderstanding corporate actions &ike )onus, sp&it, conso&idation, right, dividend, )u$)ack

etc0-the under&$ing rationa&e for each and their i#pact on the )a&ance sheet and the share

price of the co#pan$, !oncept of gearing . &everaging, !ost of capita&, =Invest#ent avenues

for individua&s and co#panies>, Funda#enta&s of sound investing, /a&uations of the )usinessentit$ - #arket va&ue, &i2uidation va&ue and )ook va&ue0 Intangi)&es &ike- )rands, hu#an

resources, patents and their va&uations0

• Risks, Introduction to Financia& Markets =!apita& Markets and Mone$ Markets>, Distinctive

advantages and disadvantages, Ma4or p&a$ers, "heir ro&es in the #arket Products, *ow to

raise funds through the Pri#ar$ Market =capita& and #one$ #arket>, *ow the secondar$#arkets operate )oth #one$ and capita& #arkets0

2'. #inancia& Ac%men or $anagers Entre*rene%rs e0

The *rogram 0i&& cover the o&&o0ing as*ects in detai&

• Ru&es of accounting

• Ana&$;ing resu&ts: financia& ratios

• !ost structure ana&$sis

• !apita& )udgeting ana&$sis

• 3sing financia& products to #anage financia& risks

"he course wi&& inc&ude discussion of financia& issues current&$ in news and short e'a#p&es for ana&$sis and decision #aking

2.#inancia& $ode&&ing

DAC- 1

• Spreadsheets for Designing Financia& +oans and Repa$#ent Schedu&e

• Spreadsheets for +oan A#ortisation

• 3se of Spreadsheets in Juantitative "echni2ues

• Financia& Mode&&ing for Pro4ect Appraisa&

DAC - 2

• Mode&&ing financia& state#ents

• /a&uation Mode&s

• Risk Mode&s 1 /a&ue at Risk

• !ounter part$ !redit Risk 1 Interest Rate Products Mode&&ing

• Financia& (ngineering using ('ce&

5


14/39

2. #inancia& P&anning

#inancia& P&anning Basic

• 6h$ do we need to p&an

• Incu&cate a sense of discip&ine

• 3nderstand the e#otions of fear and greed0

• Appreciate the concept of risk vs reward

#inancia& P&anning Process

• 3nderstanding the concept of ti#e va&ue of #one$

• 3nderstanding the concept of credit and invest#ent

• State#ent of assets and &ia)i&ities

#inancia& Strategies

• *ousing &oan, vehic&e &oan, consu#er &oan, credit card &oan

#inancia& !oa& Setting

• oa& setting: short, #ediu# and &ong ter#and prioriti;ing

B%dgeting

• Preparing a )udget

• +isting constraints

#inancia& ,nstr%ments

• 3nderstanding asset c&asses: post office, PPF, )ank deposits, #utua& funds, e2uit$, de)t,

insurance products, rea& estate, art work and co&&ecti)&es

Beneit P&ans

• Retire#ent and estate p&anning

• "a' p&anning

28. #inancia& Statement Ana&ysis

• 3nderstanding Financia& State#ents

Profit and +oss State#ent

a&ance Sheet

Funds F&ow State#ent

• 3nderstanding inconsistenc$ in financia&s and their ad4ust#ents

• I#pact of corporate actions on financia&s

• Interpretation 1 app&ication of different ratios

• !ase studies

5?


15/39

29. #inancia& Statement Ana&ysis (Ban"ing Sector)

• Structure of anking a&ance Sheet and P 1 + Account

• Price to ook, Price to Ad4usted ook !oncepts, Price to (arnings

• Profita)i&it$ Ratios - IM, Provisioning - ross and et

• Risk Re&ated Para#eters - /a&ue at Risk, Sensitivit$

• !ase stud$

2. #oreign E4change 7is" $anagement

Session 1

50 Overview of Foreign ('change Markets

• !ash 1 Spot ('change

• (urocurrenc$ Markets

• Market P&a$ers, Inter )ank ,!orporates

• Mechanis# of #aking a foreign pa$#ent• Fore' and Interest Rate #arkets

0 F(MA Regu&ations

Session 2

50 Factors affecting ('change Rates

Session '

50 "rading in Foreign ('change Markets

• "rading Procedure• Manage#ent of Internationa& "rade "ransaction

• Infor#ation Ana&$sis for "rading

• Specu&ation

• Internationa& "ransactions Financing

• !oncept of /o&ati&it$ in Fore' Markets

Session

50 Forecasting ('change Rates

• /arious theories of forecasting

• Draw)acks associated with these theories• "echnica& Ana&$sis

• Rea&-ti#e e'a#p&e

Session

50 Foreign ('change Risks

• "$pes of Risks 1 e'posures for corporates, e'ports, i#ports, )orrowing, co#petitions

5


16/39

• Measure#ent and 2uantif$ing of Risks

0 /a&ue at Risk =/aR>

• Introduction to /aR

• App&ication of /aR in Fore' Markets

Session 8

50 "oo&s of Risk Manage#ent

• Forward.Futures.Swaps.FRA

• Options

"$pes of Options &ike range notes, spreads, knock-ins.outs.digita&.)arrier,

&everaged etc0

Risk Return and *edging Profi&e

• Product Structuring

• Actua& i&&ustration

Session 9

50 *edging in Fore' Market

• *edging through Forward.Futures.Options.Swaps

• Pricing of Options.Swaps.Forwards

• Factors affecting pricing

• 3nderstanding trade &ogic )$ forecasting factors affecting pricing

Session

50 !ase Stud$

• 6here !orporate "reasuries have fai&ed using F derivatives

•

Practica& structures used )$ Indian and Internationa& corporates =Making sense out of theories and various structures>

2;. #%ndamenta&s Ana&ysis

• (cono#ic Ana&$sis 1 Industr$ Ana&$sis

• !o#pan$ Ana&$sis

• Interpretation of Financia& State#ents

• Ratio Ana&$sis

• "i#e /a&ue of Mone$ 1 /a&uation of (2uit$• Market D$na#ics

'=. o0 to 7ead $%t%a& #%nd #act Sheet

Session ,: (2uit$ Funds Ana&$sis 8 Sharpe Ratio, eta, Censen7s A&pha, "re$nor7s Ratio, ('pense

Ratio, "racking (rror, Asset A&&ocation, Portfo&io "urnover, Standard Deviation, SIP enefit,

5


17/39

!o#parative Perfor#ance over past 5. Regu&ations, 5EE

• !o#p&iance with S(I =Su)stantia& Ac2uisition of Shares and "akeovers> Regu&ations, 5EEG

• !ase stud$

• Juestions and Answers

'2. ,nterest 7ate Derivatives

Session 1: An overvie0 o the interest rates derivatives mar"ets

• "he ter# structure of interest rates: repo rate vs0 &ong ter# rates

• Inter)ank &ending vs0 treasur$ &ending

• Fi'ed and f&oating rates of &ending• An overview of )asic derivatives )ui&ding )&ocks inc&uding forward rate agree#ents, futures,

swaps, and options

• Structure of the g&o)a& interest rate derivatives #arkets

• Overview of the #arkets in India

Session 2: #or0ard rate agreements and interest rates s0a*s

• "he re&ationship )etween spot and forward rates

• Mechanics of interest rate swaps

• Introduction to interest rate swap va&uation

• "he MIOR overnight inde' swap #arket in India• *edging interest rate risk using overnight inde' swaps

• ui&ding the interest rate out&ook i#p&ied )$ the overnight inde' swap #arket

Session ': The o*tions mar"et

• Introduction

• Mechanics of an interest rate options contract

5G


18/39

• Pa$off profi&es

• App&ication of interest rate options

• Strategies

• Markets

• Option va&uation

• Put ca&& parit$

• Mode&s for va&uing interest rate options

&ack #ode&

&ack Der#an "o$ #ode&

• Inherent risks in option trading

Session : The interest rate %t%res mar"et

• Introduction to futures trading0

• "he re&ationship )etween the spot and forward price of a )ond

• An overview of the g&o)a& )ond futures contracts

• A review of the interest rate future contract in India

•

De&iver$ of under&$ing asset on e'pir$ of future• Identif$ing the Ncheapest to de&iver )ond

3sing the @)asis@

3sing the @i#p&ied repo rate@

• Invoice price

• 3ses of the interest rate futures contract

• eutra&i;ing interest rate risk

• Reducing the duration of a )ond portfo&io

• !urrent status of the Indian #arket

• Future e'pectations

''. ,nterna& +ontro& 6 #inancia& 7e*ortingInterna& !ontro& !oncept, Pre&ude, Resu&t 1 So&ution of Interna& !ontro&, !orporate overnance and

Interna& !ontro&, (thics, Ro&e of Manage#ent, Ro&e of a !o#petent oard 1 Auditors, !orporate or

Accounting scanda&s !ase Studies0

Fra#ework for Interna& !ontro&, !OSO@s Interna& !ontro& Fra#ework, Interna& !ontro& S$ste#,Infor#ation and !o##unication0 !o)it Fra#ework, Interna& Financia& !ontro&, !ode of !onduct0

Financia& Reporting, "raditiona& Financia& Reporting, Jua&it$ Financia& Reporting, (#erging trends,

Financia& Reporting Mode&s, Regu&ator$ fra#ework, !ase Studies on the I#portance of Interna&

!ontro& 1 Financia& Reporting0

'. ,nternationa& +a*ita& $ar"ets

• Overview of Internationa& !apita& Markets

• Markets and p&a$ers

• De)t Market

• (2uit$ #arkets

• Derivatives

• Fore' Market

5H


19/39

'. ,nternationa& #inancia& 7e*orting Standards (,#7S)

• Introduction to IFRS, !oncepts, Road#ap and !ha&&enges

• IAS 5 - Presentation of Financia& State#ents

• IAS 5H - Revenue

• IFRS - Share )ased Pa$#ents

• IAS 5- Propert$ P&ant and (2uip#ent• usiness !o#)inations =Mergers>, !onso&idations, Associates, and Coint /entures

• IAS 5 =!urrent ta'es and deferred ta'es>

• IAS


20/39

• Is&a#ic Finance: !urrent Scene and Pro4ected Potentia&

• "he Funda#enta&s of Is&a#ic Finance

• Is&a#ic Insurance

• App&ication of Is&a#ic Finance to the !apita& Market

• !apita& Mo)i&i;ation through Is&a#ic onds

• Microfinance in the !onte't of Is&a#ic Finance

• anking 1 Is&a#ic Finance

• Is&a#ic Finance in India "oda$: case stud$

'. >imited >iabi&ity Partnershi*

Introduction to 6hat is ++PB, eed for ++P, 6ho can for# a ++P, Overview of the ++P i&&, ('tent

1 ature of ++P, Partners and their re&ations, ('tent 1 +i#itation of +ia)i&it$ of ++P 1 Partner,

Financia& Disc&osures, "ransfer of Partnership Rights, !onversion of ++P, 6inding 3p 1Disso&ution, !o#parison )etween Partnership and ++P and !o#pan$, !o#parison )etween ++P

i&& in India and ++P Act in 39, +acunas in the ++P i&&

';. $acroeconomic ,ndicators and its ,m*act on +a*ita& $ar"ets

nderstanding !DP com*osition

• 6h$ is it i#portantB *ow to read DP dataB

• ('penditure side ana&$sis

• Inco#e side ana&$sis of DP

• "he wor&d view in DP ter#s

• For#s of DP

o Rea& /s o#ina&

o Purchasing Power Parit$

,m*ortant macroeconomic *&ayers

• RI 8 Function 1 o)4ectives

• !entra& overn#ent 8 ro&e in econo#$

• 3nderstanding econo#ic c$c&es 8 #onetar$ and fisca& sti#u&i

• 3nderstanding #one$ supp&$, inf&ation and invest#ents

!a%ging investment and cons%m*tion c&imate

• Pu)&ic 1 private invest#ents

• Foreign invest#ents 8 FII 1 FDI

•

!onsu#ption trends• 9e$ co##odit$ &inkages

• !racking the IIP

P%b&ic #inances / 5hy they are im*ortant

• "he pro)&e# of fisca& deficits

• India7s situation as a case stud$

L


21/39

• "rade deficits and Fisca& deficits

• Pu)&ic de)t traps

• Fisca& Deficit 1 Interest rates

$acroeconomic ,ndicators and sectors or investors

=. $anaging ,nvestment or 5ea&th +reation

• Invest#ent environ#ent and d$na#ics of invest#ents

• 3nderstanding e2uit$ invest#ents: P.( ratio, Inde'ing, #$th of ti#ing the #arket etc0

3nderstanding e2uit$ invest#ents: P.( ratio, Inde'ing, #$th of ti#ing the #arket etc

• 3nderstanding science of invest#ent to overco#e Fear-reed trap

• !o#paring invest#ent a&ternatives )ased on Return, Risk, Maturit$, +i2uidit$ and "a'

treat#ent

• 3nderstanding process of individua& risk profi&ing and strategic asset a&&ocation

• !reating wea&th )e$ond #arket c$c&es using Rupee cost averaging =SIP> 1 /a&ue Averaging

=S"P>

• I#portance of goa& )ased financia& p&anning using insurance, 3+IPs, #utua& funds, ("Fs,

Rea& (state, o&d and a&ternative invest#ents

• !ase Stud$ on a co#prehensive cash f&ow )ased financia& p&anning for wea&th creation

1. $ar"et +rashes / +ata&yst to Evo&%tion o Stoc" $ar"ets

Ana&$sis of various recessions . downturns

• (pisodes studied ="hese si' have )een chosen for the differences in the#>:

• "he great depression =5EE-5E

• (cono#ic ter#ino&og$: Definitions of certain econo#ic ter#s &ike recession,

depression, #arket crash, downturn, etc0

• (cono#ic c$c&es

• "he securities sca# in India =5EE>

• "he f&aws in the )anking s$ste# that were e'p&oited

• Risk of ph$sica& certificates

• "ransparenc$ in the securit$ #arkets 8 evo&ution over the $ears

• "he Asian contagion and the fa&& of +ong "er# !apita& Manage#ent =5EEH>

• !apita& f&ows and the contagion effect 8 introduction to decoup&ing

• 3nderstanding ro&e of &everage

• =I&>&i2uidit$ and its i#pact

•

&ack swan 8 a si'-sig#a event• Dot-co# )ust =LLL-LL5>

• /a&uation of stocks

• Mania

• "he Indian ang&e 8 the difference )etween Indian techno&og$ co#panies and

the Dot !o# co#panies

• Su)pri#e crisis =LLG-LLE>

• Risk of risk #easure#ent

5


22/39

• Pro)&e# with &ack of transparenc$

• 3nderstanding derivative products 8 difference )etween O"! and e'change

traded derivatives

• Decoup&ing revisited

• "he Indian ang&e 8 wh$ India ca#e unscathed

"he o)servations

• "he co##on the#es

• In spite of the differences )etween various episodes, there has )een a co##on thread

8 a co##on pattern

• Drawing para&&e&s )etween various episodes

• "his section co#pares para&&e&s )etween various episodes

• Anato#$ of a crash

• *ow does the who&e #arket crash happenB

• Is it possi)&e to identif$ a crash in advanceB

+essons fro# financia& #arket crisis

• 6hat can we &earn out of the histor$B

• Investor )ehaviour in ti#es of crisis: So#e )ehavioura& finance concepts and the co##on

#istakes #ade )$ investors

• Advisor )ehaviour: "he #istakes that the advisors #ake at ti#es 8 especia&&$ at turning

points

• Structura& and regu&ator$ contro&s

*ow to safeguard one@s portfo&io

2. $ergers 6 Ac?%isitions

road overview of Financia& Restructuring

• !hanging shape of the corporates

• Deve&op#ents in the co#petitive environ#ent

• !ore co#petenc$-driven restructuring

• !ircu#stances in which financia& restructuring takes p&ace

• Factors governing the M1A processes in India

"$pes of Restructuring- 6hen are these strategies #ost appropriate B

• Assets Restructuring- Spin-off, Sp&it-off, Sp&it-up, De-#erger, Divest#ent, Merger, "akeover,

Coint /enture, A&&iances• +ia)i&it$ side Restructuring- +O, MO, (O, +everaged !apita&i;ation, (2uit$ Reduction,

Shares u$)ack

+ega& Issues• !o#panies Act, 5E

• Sick Industria& !o#panies Act, 5EH

• F(MA


23/39

• +isting Agree#ent

• S!RA

"akeover !ode

"a' Provisions

Mergers 1 Ac2uisitions- Strategic Perspectives

• S6O" Ana&$sis of the co#pan$

• Identification of the "arget !o#pan$

• Due Di&igence In2uir$

• Se&ection of #ethods for #erger or takeover

• Financing the ac2uisition

/a&uation and Pricing of a co#pan$

• Modes of /a&uation

• (arnings )asis

• Asset )asis

• Discounted !ash F&ows =D!F>

•

Return on Invest#ents =ROI>• Return on (2uit$ =RO(>

Procedures and Processes in an M1A

• Step-)$-step approach

• egotiating the ac2uisition agree#ent

• Fina&ising the dea&, etc0

Ana&$sis of M1A "ransactions - !ase Stud$

• ('periences in an M1A dea&

'. $%t%a& #%nds

Session ,: (2uit$ Funds Ana&$sis 8 Sharpe Ratio, eta, Censen7s A&pha, "re$nor7s Ratio, ('pense

Ratio, "racking (rror, Asset A&&ocation, Portfo&io "urnover, Standard Deviation, SIP enefit,!o#parative Perfor#ance over past 5.


24/39

. vervie0 o Sec%rities >a0s

• (vo&ution of Securities +aws in India

• "raverse#ent . Courne$.Path to the current stage

• !!I Saga /s S(I

• Pricing !ontro& /s Free Pricing

• Fund Raising #ethods

50 !apita& Market Instru#ents0 (2uit$ 1 De)t

o FPO

o RI

o JIP

o Preference

o ADR.DR

o IDR

?0 !ontro&s 8

o "akeover o u$)ack

o De&isting

0 De)t 8 o !Ds

o (!s

o F!!s

• Issue of !Ds )$ Re&iance in 5EHE

• De)t: Issue of De)t Securities Regu&ations

• Issue of !D directions /s Acceptance of Deposits

•

Structured Products• !onverti)&es 8 F!Ds, !!Ps, 6arrants

• Instru#ents )$ different entities =anks, F!s,*F!s, AR!s, Others>

• Insider "rading

• +ia)i&ities for vio&ations

• Offerings to #arkets a)road0

. vervie0 o Asian +a*ita& $ar"ets

• Overview of Asian !apita& Markets

• Asian Financia& Markets 8 *istorica& Perspective

• Asian ond Market

• !ash and Derivative Instru#ent !overage

• +i2uidit$ !onstraints

• 3se of Derivatives and ro&e of *edge Funds

8. Porto&io $anagement Techni?%es

?


25/39

Day1

6e )egin the course with an introduction to the funda#enta&s of toda$7s portfo&io #anage#ent 8

Modern Portfo&io "heor$ =MP">0 6e wi&& e'p&ore concepts such as efficient frontier, risk.returntrade-offs, the asset a&&ocation process and conc&ude the da$ with a &ook at investor characteristics

and new deve&op#ents in )ehaviora& finance0

Princi*&es o modern *orto&io management (1 session)

,ntrod%ction and ob

• (ssentia& asset pricing #ode&s

+ase st%dy 8 portfo&io #anage#ent decisions

Participants wi&& )e given a historica& portfo&io of co##on stock, de)t securities and other assets and

wi&& )e asked to ca&cu&ate re&ated portfo&io statistics: e'pected returns, standard deviation of returns,covariance, corre&ation coefficients and )eta of the assets0 Participants wi&& then use this infor#ation

to construct an efficient portfo&io0

The asset a&&ocation strategiesF Strategic asset a&&ocation %sing investors ris" to&erance@

characteristics and ?%a&ities (2 sessions)

• Steps in the portfo&io #anage#ent process

• Ana&$;ing risk and return o)4ectives

• Inf&uence of po&itica& and econo#ic factors in deter#ining opti#a& asset #i'

• "$pes of asset a&&ocation: Fi'ed, f&e'i)&e, strategic and tactica& asset a&&ocation

• Overco#ing greed-fear c$c&e for rationa& invest#ent decisions

• Strategic vs0 tactica& AA

• Investor ps$che: overco#ing greed-fear hurd&e to opti#i;e investors7 returns0

•

Measuring investors risk to&erance to decide asset a&&ocation• "he cases for and against internationa& diversification

+ase st%dy: strategic asset a&&ocation

Participants wi&& )e given a )ackground infor#ation for a variet$ of different investors and asked todesign appropriate portfo&io #i'es0


26/39


27/39

• Issuer.investor perspectives

• Se&ecting opti#u# portfo&io using Sharpe7s sing&e inde' #ode&

• (2uit$ st$&e #anage#ent

• Securit$ se&ection approaches: top-down or )otto# up

• (sta)&ishing re&evant )ench#arks

• +ong-short vs0 &ong-on&$ strategies

• (2uitising #arket-neutra& portfo&ios

• A&pha . eta separation

• App&ications of porta)&e a&pha

E4ercise 8 eva&uating e2uit$ funds

6e wi&& review severa& e2uit$ portfo&ios, discussing re&ative weightings, sector a&&ocation and other

i#portant attri)utes affecting perfor#ance

E?%ity inde4ing-Passive strategy (1 session)

•

6eighting sche#es of #a4or indices• (2uit$ inde' futures and their ro&e

• Inde' #utua& funds

• ('change-traded funds

• Strategies and )ench#arking approaches

,nternationa& e?%ity *orto&io management

• !onstructing internationa& e2uit$ )ench#arks

• !&assification issues: Deve&oped, e#erging of frontierB

• "o hedge or not to hedge F risk

•

(ffect of ho#e )ias and infor#ation advantage

+ase st%dy

(#erging #arkets portfo&io construction0 Participants wi&& first e'a#ine so#e of the #a4or issues

confronting e#erging #arket portfo&io construction, inc&uding high corre&ations during crisis, cost of capita& co#putation difficu&ties, and non-nor#a& return distri)utions0 "hen, groups wi&& prepare a

presentation to investors de#onstrating the advantages of an e#erging #arket portfo&io0

Day '

$eas%ring and eva&%ating $anaged *orto&ios *erormance and e4*&oiting a&ternativeinvestment strategies or s%*erior *orto&io *erormance

Perormance meas%rement@ eva&%ation and attrib%tion (2 sessions)

• !o#puting su)-period returns and arith#etic average rates of return

• "i#e- and do&&ar-weighted rates of return

• (va&uating portfo&io perfor#ance using risk ad4usted #easures0

G


28/39

• Sharpe ratio

• "re$nor ratio

• Censon7 s a&pha

• Fa#a7s net se&ectivit$

• "i#ing and st$&e )ased #easures

• Overview of IPS 8 &o)a& Invest#ent Perfor#ance Standards

• ench#ark portfo&ios and return attri)ution ana&$sis

+ase st%dy: Portfo&io perfor#ance eva&uation and attri)ution

!ase on raking various #anaged portfo&ios )ased on risk ad4usted perfor#ance and attri)ution

ana&$sis of superior perfor#ance

A&ternative investment management 6 strategies (2 sessions)

The a&ternative investments %niverse

Different invest#ents and their investor characteristics

• !o##on features of a&ternative invest#ents

• Specia& issues for invest#ent #anagers and advisers

Princi*a& c&asses o a&ternative investments inc&%ding:

• *edge funds

• Private e2uit$

• !o##odities

•

Rea& estate• Distressed securities

A&ternative ,nvestment strategies to create *orto&ios 0ith s%*erior ret%rns

• *edge funds strategies

• 9e$ drivers of hedge fund returns

• 5


29/39

9. Porto&io 7is" Ana&ysis

Session 1 6hat is Risk, "$pes of Risk

Session 2 Risk and Risk Pre#iu#s

• *ow to ca&cu&ate a Risk Pre#iu#

• *o&ding Period Return

• Rea& Risk and o#ina& Risk

• Portfo&io Risk Introduction0

Session ' Risk and Risk Pre#iu#s

• Portfo&io Risk !a&cu&ation

• Asset A&&ocation

Session ond Mathe#atics

• Inverse Re&ation

• Interest Rate Sensitivit$

• Duration

• Portfo&io Average Maturit$

• !ase Stud$

. S%rvei&&ance@ 7is" $anagement And Sec%rities Sett&ement

,ntrod%ction to 7is" $anagement

• "he risk #anage#ent fra#ework

•

Overview of different t$pes of risk • !urrent trends in !apita& Markets

+redit 7is" $anagement

• Defining credit risk

• !ounterpart$ risk

• Defau&t risk

• Sett&e#ent risk

• *ow co&&atera& #anage#ent can he&p reduce risk

• Descri)ing the credit rating process

$ar"et 7is" $anagement

• Defining #arket risk

• Identif$ing risk sensitivit$

• +i2uidit$

• /o&ati&it$

• Managing Risk using /AR #ethod

E


30/39

• Stress "esting

*erationa& 7is" $anagement

• Defining Operationa& Risk

• Assessing various wa$s to #onitor ad contro& operationa& risk

• *ow to integrate #arket risk with operationa& risk

7is" $eas%rement Too&s

• *istorica& Si#u&ation

• /ariance fro# #ean

• /AR

,dentiying Areas to Eective&y ,m*&ement $anage and +ontro& 7is"

• Integration of on&ine #onitoring with off&ine #onitoring

•

!ase Stud$ of #a4or #arket #ove#ents• !apita& ade2uac$ nor#s

+&earing an Sett&ement Proced%res

• Sett&e#ent c$c&es

• Margins and Margining Manage#ent

• !o&&atera& Manage#ent

• Risk Manage#ent through use of "rading P&atfor#s

,ns*ection

• 9! or#s

• Risk Manage#ent profi&e of c&ients

• Process Audit

;. Ta"eover +ode

• Introduction to takeovers

• Regu&ator$ fra#ework governing takeover of co#panies in India and a)road

• !ase stud$

• Pitch )ook

=. The Art o 7eading an Ann%a& 7e*ort

E&ements o s%b


31/39

• 3nderstanding the nature of ke$ accounting po&icies

• Auditors7 report

• *ow to gauge #anage#ent 2ua&it$B "he ke$ pointers0

!%iding str%ct%re

• "he &aws that regu&ate Annua& report structure

• Process of conso&idation 8 so#e funda#enta&s

• 3nderstanding the corporate structure

• 6h$ are corporate structures i#portantB

#inancia& eva&%ations

• !apita& (#p&o$ed


• Margin profi&es

• /o&u#e profi&es

•

Industr$ &everage• Ro!( and Ro( deco#position

+ase St%dy

• (va&uation of an annua& report0 A !&assroo# e'ercise0

1. nderstanding >isting Agreement in ,ndia

>isting o Sec%rities

• 6hat is &isting%

•

6ho can &ist%• 6hat securities can )e &isted%

• Process0

>ega& 7egime

• S(I%

• Securities !ontracts =Regu&ation> Act, 5E%

• Securities !ontracts =Regu&ation> Ru&es, 5EG%

• S(I =Su)stantia& Ac2uisition of Shares and "akeover> Regu&ations, 5EEG%

• S(I =Prohi)ition of Insider "rading> Regu&ations, 5EE%

• S(I =Issue of !apita& and Disc&osure Re2uire#ents> Regu&ations, LLE0

>isting Agreement-

• enesis and histor$ of +isting Agree#ent%

• App&ica)i&it$ and re&evance%

• !ontract )etween Stock ('change and &isted co#panies0


32/39

,m*ortant +&a%ses o the >isting Agreement

• otifications . Inti#ations:

i0 Advance notifications for certain corporate actions%

ii0 otification after certain corporate actions =e0g0 outco#e of oard Meetings 8 dividend

dec&aration, dec&aration of )onus, )u$ )ack of securities, change of )usiness etc0>%

iii0 !orporate actions re2uiring )oth inti#ation to stock e'changes and notification innewspapers%

iv0 est practices 8 guidance of ti#ing and #ode of inti#ation 8 i&&ustration )$ wa$ of

e'a#p&es addressing co##on concerns for )oth the Stock ('change and corporate0

• !orporate overnance 8 !&ause ?E:

i0 Ade2uac$ of Indian !orporate overnance% and

ii0 est practices0

• Fi&ings - +isting Agree#ent, "akeover !ode and PI" Regu&ations - i&&ustration )$ wa$ of

e'a#p&es addressing co##on concerns for )oth the Stock ('change and corporate

7ecent Deve&o*ments to the >isting Agreement 8 I#pact

2. nderstanding Str%ct%red ,nvestment Prod%cts

Session 1: Ro&e P&a$ e'ercise with Structured Invest#ent Products with one &ive case0 "he o)4ective

is to share the perspectives of the traders, sa&es tea#, investors, regu&ators, product #anagers etc0through a ro&e p&a$0

Session 2: ui&ding )&ocks of Structured Invest#ent Products% Derivatives 8 Recapitu&ation of )asicsof derivatives =forward, futures and options, e'otic options &ike 9I, 9O etc0>

Sessions ' and : Pricing and /iew )ased strategies for Structuring Invest#ent Products =forward,futures and options pricing and trading strategies>0 "his wou&d &a$ the foundation for #anufacturing

these products0

Session : !ase Stud$ with so#e Structured Invest#ent Products: "he o)4ective is to app&$ theunderstanding and deco#pose so#e of the e'isting products into their pieces0

'. 3a&%ation 6 $ode&ing or #$+! Sector

#$+! ,nd%stry basics

• 3nderstanding the nature of consu#ption


33/39

• Discretionar$ 1 non-discretionar$ consu#ption 8 patterns of growth

• Penetration &eve&s across categories

• !onsu#ption )asket 8 variations across econo#ies

• Indian !onsu#ption )asket 8 ke$ trends

,nd%stry Str%ct%re

• 9e$ consu#ption categories and #arket si;es

• rands 8 their #aking and power

• rowth engine or defensive p&a$B

• "he M! /s Indian FM! de)ate

• Porter7s five force ana&$sis across categories

o Supp&$ !hain

o !usto#er )argaining power

o !o#petitive intensit$

o (ntr$ )arriers

o "hreat of su)stitutes

B%siness +haracteristics


• Margin profi&es

• /o&u#e profi&es

• Industr$ &everage

• !ost structure co#parison

• /a&uation approach se&ection

3a&%ation E4ercise

• est&e India +td

o Annua& report stud$

o Financia& Mode&ing

o /a&uation

• !o&gate Pao&ive =India> +td

o Annua& report stud$

o Financia& Mode&ing

o /a&uation

• A stud$ of corporate structures across the sector

Trac"ing the #$+!

o Macroecono#ic factors to watch

o !o#pan$ specific factors to watch

o Making the re&ative invest#ent choice

. $ethods in 3a&%ation o Shares


34/39

Day 1

• Session1

Introduction to /a&uation and its re&evance, I#portant concepts re2uired in va&uation, cost of e2uit$, )eta, #arket pre#iu#, risk free rate, and forward rates, each e&e#ent to )e actua&&$

co#puted )$ participants0

• Session2

A case stud$ on pro4ections with hands on stud$ on co#puters

• Session'

Dividend Approaches to /a&uation 8 !ost )ased #ethods, !o#parative Methods, !ash F&owdiscounting #ethods0 !o#puting cost )ased #ethods0 !o#puting cost )ased #ethod for case

stud$ co#pan$0

• Session

!ase Stud$ e'tension to cash f&ow discounting #ethod continued inc&uding sensitivit$ana&$sis and e'pected va&ue0

Day 2

• Session1

!ash f&ow discounting #ethod continued inc&uding sensitivit$ ana&$sis and e'pected va&ue0

• Session2

!o#parative /a&uation #ethods - P(, (/ to (I"DA and other #u&tip&es to )e co#puted )$

participants of case stud$ co#pan$0

• Session'

Putting it a&& together and deter#ining c&usters fro# where to e'tract va&ue0

• SessionSo#e issues in M and A va&uation, Fina& 2uestions and wrap up0

. 3a&%e ,nvesting Techni?%es

• "hought process of va&ue investors

• Price 8 /a&ue differentiation phi&osoph$

• I#portance of understanding va&ue

• Sources of /a&ue 8 2ua&itative aspects and 2uantitative para#eters

• *urd&es to va&ue discover$ in the #arkets

• Approaches to va&uation 8 se&ection criteria• /a&uation phi&osoph$, si#p&e approach 1 Methodo&og$

• /a&ue investing in toda$7s #arkets

• /a&ue Investing !ase studies

8. 3ent%re +a*ita& 6 Private E?%ity #inance


35/39

• Introduction.Overview to /enture !apita& TA7!ET AD,E+E

• "$pes of /enture !apita&

• Ro&e of /enture !apita&ist

• "$pes of )usinesses.industries preferred )$ /enture !apita&

• Su##ar$ of and #ain )usiness proposa&

• Due Di&igence Procedures

• Process of Financing

• "$pes of Funding

• /a&uation Approaches

• +ega& Fra#ework and ('it Routes for /enture !apita&

• !ase Stud$

• Start-up ventures, Mediu#-si;ed &isted co#panies, Invest#ent ankers, ankers,

(ntrepreneurs and other #arket inter#ediaries0

9. 5ea&th $anagement: A *ractica& a**roach

1. ,m*ortance o 0ea&th managementAfter a creation of wea&th, it is far #ore i#portant to protect the wea&th and )$ #anaging the wea&th

in p&anned #anner #ore wea&th can )e created fro# the wea&th itse&f0

2. 7is" $anagement 6 Protection o 0ea&th

"o understand risk areas and process of e&i#inating or reducing the risk, since there are various t$pes

of risks associated with a&& financia& products0

'. 7etirement P&anning and 0ay to creation o 0ea&th or retirement

"o understand the i#portance of #ost i#portant financia& goa& of an individua&, which is retire#entB"his #odu&e further he&ps to know the various wa$s to p&an for go&den $ears0

. Asset A&&ocation 6 B%i&ding yo%r #inancia& ome

"o have know&edge of different financia& products and their characteristics0 Depending on the risk

profi&e and age, asset a&&ocation shou&d )e done in different asset c&asses

. Ta4 P&anning

"his #odu&e wi&& gives an overview of various ta' provision and ta' )enefits associated with various

financia& products0

8. 7is" Proi&er 6 vervie0 o #inancia& Prod%cts

"o understand individua& risk taking capacit$ and categori;e invest#ent risk into conservative,#oderate and aggressive0 "his #odu&e wi&& give )road overview of various financia& products under

different asset c&ass0


36/39

9. Estate P&anning

"o understand the i#portance of succession p&anning through different t$pes of wi&& or trust andknowing i#portant and re&evant provisions of succession act0

. 5or"ing +a*ita& $anagement

,ntrod%ction to 5or"ing +a*ita&

Operating !$c&e, Production !$c&e, Distri)ution !$c&e, Pipe&ine Inventories, Factors Deter#ining

6orking !apita& Re2uire#ents, I#portance of Opti#u# 6orking !apita&, 6orking !apita& Po&ic$

and Manage#ent, Profita)i&it$ v.s +i2uidit$0

Ty*es o 5or"ing +a*ita&

Per#anent-"e#porar$, Financing 6orking !apita&, 6orking !apita& Monitoring and !ontro&0

5or"ing +a*ita& Estimation

(sti#ation Procedure, 6orking !apita& ased on Operating !$c&e, Different !o#ponents of

6orking !apita&, (sti#ation of 6orking !apita& Re2uire#ents0

$anagement o +ash and $ar"etab&e Sec%rities

!ash Manage#ent, Factors Affecting !ash eeds, !ash udget, !ontro& Aspects, Managing "heF&oat, Invest#ent of Surp&us !ash0

7eceivab&es $anagement

!osts And enefits of Receiva)&es, !redit Po&ic$, !redit (va&uation, !redit !ontro&, Factoring and

Receiva)&es Manage#ent, Forfeiting, (va&uation of !redit Po&icies0

,nventory $anagement

"$pes of Inventories, !ost of Maintaining Inventor$, "echni2ues of Inventor$ Manage#ent, Risks in

Inventor$ Manage#ent0

#inancing 5or"ing +a*ita&

"$pes Of Spontaneous Sources, "rade !redit, !o##ercia& Paper, Annua&i;ed !ost Of Financing,

"$pes Of ank !redit, Other Sources of Short "er# Financing, Regu&ation of ank !redit In India0

Q"I conducts a&& a)ove training progra##es on fu&&-ti#e or part-ti#e as #entioned a)ove0

Q"I, however, #a$ &aunch an$ fu&&-ti#e training progra##e as a part-ti#e one and vice versa0


37/39

;. +ertiicate Program on +ommodity and +%rrency $ar"et

Modu&e 5: An Overview of !o##odit$ Market

• Introduction to g&o)a& co##odit$ #arkets

• *istoric Significance of !o##odit$ Markets 1 Internationa& ('changes

•

Inter&ink co##odit$ 8 currenc$ #arkets• !o##odit$ Market d$na#ics

• Product specifications

Modu&e : An Overview of !urrenc$ Market

• Introduction to g&o)a& currenc$ #arkets

• "he historic significance of currenc$ #arkets 1 internationa& e'changes

• Introduction to currenc$ #arkets and currenc$ derivatives. Introduction to co##odit$

#arkets

• Regu&ator$ fra#ework: po&icies, functions 1 rights Integration of #arkets and their

i#p&ications

• !urrenc$ Market D$na#ics

• Product Specifications

• !urrent !ha&&enges and Opportunities

Modu&e


38/39

• Dow "heor$

• Introduction to Capanese !and&e Sticks

Modu&e G: App&ication of Derivatives in !o##odit$ 1 !urrenc$ Markets

• Introduction to Derivatives =forwards and Futures>

• !urrenc$.co##odit$ Futures - Product !onfiguration and sa&ient features

• Market "er#ino&og$ - Open Interest, /o&u#e, various positions etc

Modu&e H: Pricing !o##odit$ 1 !urrenc$

• Pricing of currenc$.co##odit$ futures

• Pricing of !o##odities Futures using !ost of !arr$ Mode&

Modu&e E: "rading Strateg$ for !o##odit$ and !urrenc$ #arkets

• Strateg$ for hedgers

• Strateg$ for specu&ators

• Strateg$ for ar)itragers

•

3ses of !urrenc$.co##odit$ Futures - /iew )ased trading, *edging etc0

Modu&e 5L: Risk #anage#ent for !o##odit$ and !urrenc$ #arkets

• Risk Manage#ent of the product 8 Margining, position &i#its and re&ated concepts

• Risk #anage#ent in !o##odities Derivatives 1 !urrenc$ derivatives

• /AR #argin

• (+M #argin

• Specia& #argin

• Position #onitoring

• !o#parison of Risk #anage#ent in Financia& Derivatives and !o##odities Derivatives

•

Risk #anage#ent in )oth seg#ent 8 cha&&enges and opportunities

Modu&e 55: Mock "rading and !ase Stud$

• Inter-Re&ation )etween Different Markets 8 +essons for !urrencies

• !ase studies on !atastrophe caused )$ !o##odities Derivatives #arket

• !o##odities derivatives vs0 Inf&ation 8 Much de)ated topic

• !o##odities in a g&o)a&i;ing econo#$

8=. +ertiicate Program on +a*ita& $ar"et (+P+$)

MA!RO (!OOMI!S

Introduction to the !apita& Market, Avai&a)i&it$ of Internationa& Finance to Do#estic !o#panies,+i)era&i;ation, Privati;ation and &o)a&i;ation and their re&evance to the Indian (cono#$, Macro

(cono#ic Funda#enta&s 1 their re&ation with the !apita& Markets, Stock ('changes, DP,Popu&ation, Sectors of (cono#$, Rando# 6a&k "heor$ 1 (fficient Market "heor$0

PRIMAR MAR9("SS(I Act 1 Ru&es =Pri#ar$ Market>, Pro4ect Appraisa&, Pro4ect Finance, Pricing 1 /a&uation of

(2uit$, (cono#ic Ana&$sis, Industr$ Ana&$sis, !o#pan$ Ana&$sis, +isting on S(, Pu)&ic Issues,


39/39

3nderwriting, Private P&ace#ent of Shares 1 ought-out Dea&s, ook ui&ding, Merchant ankingin respect to Mergers 1 Ac2uisitions, Mutua& Funds0

S(!ODAR MAR9(""rading, Sett&e#ent 1 Survei&&ance, O+", Derivatives = Futures 1 Options >,Inde' Futures, Inde'

Options, Stock Futures 1 Stock Options, Depositories 1 De#ateria&i;ation, Ro&&ing Sett&e#ent,

S(I Act 1 Ru&es =Secondar$ Markets>, Inco#e "a', Securit$ Ana&$sis and Portfo&io Manage#ent,Ro&e of Derivatives in anks and Risk Manage#ent0

+(A+ IFRAS"R3!"3R("he Securities !ontracts =Regu&ation> Act 5E, =Ru&es, $&aws 1 Regu&ations>, !o#panies Act,

Ru&es for FII 1 RI Invest#ents, MR"P Act, !onsu#er Protection Act, F(RA F(MA 1 Mone$

+aundering Act, !orporate overnance

O"*(R !API"A+ MAR9(" R(+A"(D AR(AS

Funda#enta&s Ana&$sis, Indices, "echnica& Ana&$sis, Persona& Invest#ent, Mone$ 1 De)t Market,

!redit Rating, Securiti;ation of Assets, Foreign ('change Market 1 Forfeiting, +easing 1Factoring, u$)ack of Shares, (/A, Ro&e of anks in the !apita& Market

Documents

BTI Program Brochure