Programme : B. F.M. Semester III Course : Debt Market

Programme : B. F.M. Semester III

Course : Debt Market

Teaching Scheme Evaluation Scheme

Lecture Practical Tutorial Credits Theory

Internal External

45 - - 03 25 Marks

75 Marks

Internal Component :

Class Test Duration 20 Mins Assignments/ Projects/ Case study

10 Marks 15 Marks

Semester Examination

Examination (Duration 2 ½ Hrs) : 75 Marks

Learning Objectives

To gain an understanding of debt market its evolution To understand the role and functions of different players in the debt market To understand the importance of Bond, types of bonds its ratings and relevance of rating agencies To understand the importance of bond valuation its calculation

Learning Outcomes

The students will be able to understand the difference between equity market & debt market and its various instruments The students will know the importance of different players and their functioning The student will be able to identify different types of bonds, the process of rating agencies , benefits of rating The student will be able to calculate bond value i.e Present value & Future Value

Pedagogy

Lecture method, Debates, Discussions, Group activities, Role play, Written assignments, Use of Financial Calculator or Excel Worksheet

Detailed Syllabus Plan

Module Module Content Module wise Pedagogy Used

Duration of Module

Reference Book

I Introduction to the debt markets: Evolution of Debt Markets in India Primary market & secondary market Money market & Debt Market in India Fundamental features of debt instruments Regulatory framework in the

Lecture method, Debates, Group Discussions, Group activities, Role play,

07 lectures

Bhardwaj, Gautam, (2008), The Future of India’s Debt Market, Tata McGraw Hill. Suryanarayan, (2002), Debt Market, ICFAI Publication Press. Fabozzi, Frank, (2004), Fixed Income Analysis

Indian debt market Workbook, 2nd edition , John Wiley & Sons Shah, Ajay, Thomas, Sushan and Gorham, Michael, (2008), Indian Financial Markets, Elsevier, USA FIMMDA-NSE Debt Market (Basic) Module, Workbook from NSE. Dun and Bradstreet, (2008), Fixed Income Securities, Tata McGraw Hill.

II Instruments & players in debt markets central government securities: bonds, T-bills, state government bonds, Open market operations Securities Trading Corporation of India Primary dealers in Government Securities Clearing Corporation of India


08 lectures

III Bonds Features of bonds Types of bonds Issuers of bonds Bond ratings- importance & relevance and rating agencies. Bond portfolio Management Strategies

Lecture method, Discussions, Class activity & written assignments

15 lectures

IV Valuation of bonds Determinants of the value of bonds Duration & Convexity Valuation & Analysis of fixed Income Securities Bond Mathematics Yield Curve Analysis

Lecture method, Discussions, Class activities, Written assignments, use of Financial Calculator or Excel Worksheet

15 lectures


Course : Equity Market



Internal External

45 - - 03 25 Marks

75 Marks



10 Marks 15 Marks



Learning Objectives

To understand the development in Indian Equity Market, Role of FDI / FPI To understand the different models of share valuation, fundamental analysis of economy, industry & company To understand the share price movement by hypothesis theory To understand the dealings in stock exchange

Learning Outcomes

Students will be able enumerate the importance of investments, disinvestments, FDI, FPI Students will be able to conduct fundamental analysis of companies , Balance sheet valuation of shares , Dividend discount model Students will be able to understand Stochastic Models, Brownian Motion , BETA Students will understand the practical operation in stock market viz. online trading, settlement procedure

Pedagogy

Theory Notes, Debates, Role Play,Case lets ,Assignment / Class Quiz



Duration of Module

Reference Book

I Developments in the Indian Equity Market i. Domestic savings & investments ii. Disinvestments, FDI & Foreign Portfolio Investment (FPI) iii. Role of Retail Investors iv. Share Price & Share


08 lectures

1. Equity Markets in India- Shveta singh & P K Jain 2. Equity and Debt Markets- Hardeep Kaur 3. An Introduction to Equity Markets- David Dasey

Price Volatility v. Role of SEBI

II Valuation of Equities i. Factors affecting Share Prices ii. Balance sheet valuation iii. Dividend discount model (zero growth, constant growth & multiple growth) iv. Price earning model v. Fundamental Analysis- Economy, Industry and Company Model vi. Macro Economic factors vii. Market related factors


15 lectures

III Statistical Analysis of Share price movement i. Efficient Market Hypothesis ii. Stochastic Models iii. Brownian Motion iv. BETA


15 lectures

IV Dealings in Stock Exchanges i. Role of Brokers ii. Stock Market Quotations iii. Procedure for buying & selling iv. BOLT - On Line Trading/ NEAT System v. Clearing & Settlement vi. Order Matching

Lecture method, Discussions, Class activities, Written assignments

07 lectures


Course : Commodity Market & Derivatives



Internal External

45 - - 03 25 Marks

75 Marks



10 Marks 15 Marks



Learning Objectives

- To understand commodity market and available products - To understand trading and pricing of commodity derivatives - To understand regulatory framework of commodity market - To learn about different commodity exchanges

Learning Outcomes

- Learner will learn pricing techniques for commodity futures - Learner will learn aspects related to commodity trading - Learner will learn different compliances related to commodity market and exchanges

Pedagogy

Lecture method, Debates, Group Discussions, Group activities, Role play



Duration of Module

Reference Book

I Introduction of Derivatives ( including Equity, interest rate,currencies, market index derivatives ) Derivatives definition, Types of derivatives, Products, Participants and Functions, Exchange traded vs. OTC Derivatives -How Commodity Derivatives differ from financial Derivatives - Warehousing, Quantity of underlying assets,


10 lectures

o Commodities Market Module, Workbook from NSE o Chatnani, (2010), Commodity Markets, 1st edition, Tata McGraw Hill. o Kleinman, George, (2001), Commodity Futures & Options, 2nd (revised, illustrated edition), Prentice Hall. o Stephens, John. (2001), Managing Commodity Risk, John

Global Commodity Exchanges, Commodity Exchanges in India, Commodities permitted for trading, Kabra committee Report, Commodity specific issues - Cropping and Growth patterns, Global Domestic demand -supply dynamics, Price trends and Factors that influence prices

Wiley & Sons. o Indian Institute of Banking & Finance, (2007), Commodity Derivatives, Macmillan India Ltd

II Pricing commodity derivatives Investment assets vs. Consumption assets-The Cost of Carry Model - Pricing futures contracts on investment commodities-Pricing futures contracts on consumption commodities-The futures basics- Concept of Hedging, Speculation, Arbitrage


12 lectures

III Trading: Basic Concepts Basic concepts such as Margins, Circuit filters - delivery norms – Contracts specifications, Trading system, and Entities in the trading system, Trader workstation, Order types and conditions, Exposure limits, Commodities to be traded: Types of commodities: Bullion (silver and Gold), Agricultural commodities. Clearing, settlement and Risk Management: Calendar and Settlement schedule, Position determination, Settlement mechanism,


15 lectures

Daily mark to market settlement, Settlement price - Daily settlement price, Final settlement price, Margining - Initial margin, Daily mark to Market margin, Open interest limits, Second line of Defense, NSCCL span. Final Settlement: Cash settlement, Physical settlement (warehousing) Exception handling: Funds shortages, Delivery shortages.

IV Regulatory Framework (SEBI) Rules governing Commodity derivatives-Derivatives Exchange, Rules Governing Intermediaries, Investor Grievances, Arbitration Rules. unction & Role-Trading & Clearing Methods -Commodity Futures -Commodity Specific Exchanges Vs Multi Commodity Exchanges- Strengthening Commodity Markets in India- Role of Government - Role of Commodity Exchanges - Other Institutions -Training & development of Dealers.


08 lectures


Course : Management Accounting



Internal External

60 - - 04 25 Marks

75 Marks



10 Marks 15 Marks



Learning Objectives

To understand the scope and functions of Management accounting- Role of Management Accounting in decision making To understand the interpretation of financial statement and ratio analysis To understand the preparation of cash flow statement & Working Capital

Learning Outcomes

Students should understand the importance of Management Accounting Students will be able to prepare Vertical Balance Sheet/Revenue Statement , Comparative , Common Size & Trend Statement Students should be able to calculate and do analysis of various ratios Students should be able to prepare Cash Flow Statement & Compute Working Capital requirements

Pedagogy

Theory Notes, Practical Sums, Discussion, Case lets, Assignment / Class Quiz



Duration of Module

Reference Book

I Introduction to Management Accounting Meaning, nature, scope and functions of Management accounting- Role of Management Accounting in decision making- Management accounting and Financial Accounting


15 lectures

• Cost Management by Saxena & Vashist • Cost & Management Accounting by Ravi N.Kishor ,Publication Taxmonth • Essential of Management Accounting by P.N.Reddy,Himalaye • Advanced

Management Accounting by Robert S Kailar,Holl • Financial Of Management Accounting by S.R.Varshney,Wisdom • Introduction of Management Accounting by Charbs T Horngram, PHI Learnng • Management Accounting by I.m.Pandey, Vikas • Cost & Management Accounting by D.K.Mattal,Galgotia • Management Accounting by Khan & Jain,Tata Megaw • Management Accounting by R.P.Rastogi

II Analysis and interpretation of Accounts V Vertical form of Balance sheet and Profit & Loss account suitable for analysis Trend Analysis Comparative Statements Common size statement Simple problems based on the above


15 lectures

III Ratio analysis and interpretation based on Vertical financial Statements as above a) Balance sheet Ratios Current Ratio Liquid Ratio Stock Working capital Ratio Proprietary Ratio Debt Equity Ratio Capital Gearing Ratio b) Revenue Statement Ratios Gross Profit Ratio


15 lectures

Expenses Ratio Operating Ratio Net Profit Ratio Stock Turnover Ratio c) Combined Ratios Return on Capital Employed (including long term borrowings) Return on Proprietor’s Fund (shareholders’ fund and Preference Capital) Return on Equity Capital Dividend Payout Ratio Debt Service coverage Ratio Debtors Turnover Ratio Creditors Turnover Ratio

IV Cash flow Statements Preparation of cash flow statements with reference to Accounting Standard No 3 – Indirect Method Only Working Capital- Concept Estimation of working capital requirements in case of trading and manufacturing organizations


15 lectures


Course : Business Regulation



Internal External

45 - - 03 25 Marks

75 Marks



10 Marks 15 Marks



Learning Objectives

- To understand different business law such as contract, sale of goods - To learn specific laws for financial services such as Negotiable instruments - To learn about cyber laws applicable to business

Learning Outcomes

- Learner will learn about common business laws applicable to all types of organization - Learner will have basic legal knowledge - Learner will be able to implement legal knowledge for day to day transactions in business

Pedagogy




Duration of Module

Reference Book

I Indian Contract Act Indian Contract Act 1872: Definitions (S.2): Agreement, kinds of Agreements, Contract- kinds ofcontracts: Valid, Void, Voidable, Contingent and Quasi Contract and E contract, distinguish between Agreement and Contract. Offer or Proposal- definition, Essentials of Valid proposal or offer,


10 lectures

• Indian Contract Act , Sale of Goods Act and Partnership Act – Desai T R – S C – Sarkar and sons • The Negotiable Instruments Act – Khergamwala J S – N M Tripathy • The Principles of Mercantile Law – Singh Avtar – Eastern Books Co. • T P Ghosh on Companies Act 2013: T P Ghosh: Taxmann

counteroffer, Standing or open offer, distinguish between offer and invitation to offer, Acceptance-definition, Essentials of a valid acceptance, Promise, Communication of Offer and acceptance and Revocation. Capacity to contract (Ss.10-12), Consent and Free Consent (Ss.13-22) Consideration (S.2 and 25) and Void Agreements (Ss.24-30) Special Contracts: Law of Indemnity and Guarantee (Ss.124-125, Ss-126-129,132-147) Law of Bailment and pledge (Ss. (Secs148,152-154,162, 172,178,178A and 179) Law of Agency (S. 182-185& 201-209only)

• E Book by ICAI on Companies Act 2013 • E Book by Institute of Company Secretaries of India • Intellectual Property Rights in India: Dr V K Ahuja: Wadhwa Book Company • SEBI Manual by Taxmann • SEBI Act : Sumit Agarwal and Robin Joseph Baby: Taxmann • Securities Contract Regulation Act and Rules • Practical Guide to Limited Liability Partnership : P L Subramanian : Snow white Publication • Text book on Indian Partnership Act with Limited Liability Partnership Act Dr Madhusudan Saharay : Universal Law Publishing Company

II Sale of Goods Act : Introduction, Definitions (Sec-2), Formalities of the contract of sale (Ss. 4- 10), Distinction between ‘sale’ and ‘agreement of sell, Distinction between ‘sale and hire-purchase agreement’ Conditions and Warranties (11-17) Transfer of property as between the seller and the buyer (sec-18-26) Rights of an unpaid seller (Secs-45-54)


12 lectures

III Negotiable Instruments Act Meaning and

Lecture method, Discussions, Class activity & written

15 lectures

Characteristics of Negotiable Instrument, Operational rules of Evidence –Presumptions, classification of Negotiable Instruments. Promissory Notes and Bills of Exchange(Ss. 4,5,108-116) Essential elements of Promissory Note and Bill of Exchange, Distinguish Between Promissory note and Bill of Exchange. Acceptor and Acceptance, definition of Acceptor, Acceptance for honour, Absolute and qualified or conditional acceptance, Drawer, Drawee in case of Need(Ss.7,115&116) Payee,Cheques, Types of Cheque and Penalties in case of dishonour of certain cheques, distinguish between cheque and Bill of exchange, (Sec: 6,123- 131A,138-147) Miscellaneous Provisions:(Secs:8-10,22,99-102,118-122,134-137)Holder(S.8), Holder in Due Course(S.9), Rights and privileges of H.D.C.Payment in due course (S.10), Maturity of an Instrument (S.22), Noting(S.99), Protest (S.100-102). Bills in Set. (Sec.13)

assignments

IV Elements of Information Technology Act ; Cyber laws; Scope of Cyber Laws; Classification of Cyber Crime; Digital


07 lectures

Signature, Electronic record and E governance, Data protection, Information Technology Act 2000; Regulation of Certifying Authorities; Adjudication


Course : Marketing in Financial Services



Internal External

45 - - 03 25 Marks

75 Marks



10 Marks 15 Marks



Learning Objectives

- To understand different financial services - To understand different aspects of service marketing and crucial role of employees of service

provider - To understand new trend of E-marketing

Learning Outcomes

- Learner will understand different associations and criteria related to service marketing - Learner will learn new e-marketing tools applicable to financial service industry

Pedagogy




Duration of Module

Reference Book

I Foundation of Services Marketing Foundation of services marketing – Introduction – The services concept – Service Industry – Nature of Service, Characteristics of Services, Classification of Services – Importance of Services Marketing – The Growth in Services – Global and Indian Scenario, Retail


07 lectures

Financial Services:

Arthur Meidam:

Macmillan

Financial Services:

Christine Ennew,

Trevor Watkins

Mike Wright:

Routledge

The Essence of Services Marketing.: Payne, Adrian: Prentice Hall of India Private Limited,

Financial Services: Investment Services – Insurance Services, Credit Services – Dimensions and drivers, Institutional Financial Service, Distinctive Characteristics of Services _ Four I’s of Services – Intangibility, Inconsistency, Inseparability and Inventory, Managing Service Encounters.

Customer Service Meaning and Measurement: La Londe, B.J. and Zinszer, P.H: National Council of Physical Distribution Management (NCPDM.)

Financial Services Marketing: Harrison, Tina: Pearson Education

II Services Market Segmentation Services Market Segmentation – Positioning and Differentiation of Services, Promotion and Communication – Designing and Managing Service Processes, Constructing and Service Environment – Managing People for Service Advantage – Service Quality and Productivity – Customer Relationship Management Customer Loyalty.


15 lectures

III Issues in Marketing of Services Issues in Marketing of Services – Extended Services Marketing Mix : Going Beyond the 4 Ps. (7Ps of Services Marketing). Service Delivery Process –


15 lectures

Service Blueprints - Service Mapping – Managing Employees for service orientation. Distribution Strategies of Services – Challenges in Distribution of Services. Personal Selling – Advertising and Sales Promotion in Service Industry.

IV Issues in Marketing of Services Customer Satisfaction & Service Quality in Service Marketing – Service Encounter – Role of HR & Internal Marketing – Monitoring and Measuring customer satisfaction, GAP Model – Handling complaints effectively – Service Failure – Recovery, Use of Internet in Service Marketing, Role of IT in marketing Financial Services, Ethics in Marketing, New trends in marketing, Marketing in 21st

Century, Marketing through social networking channels


08 lectures

E-marketing – E-Marketing Tools –E-mail Marketing, Creating a website, Social Media Marketing, Pay per Click Advertising, Search Engine Optimization, Blogging and Classified Advertising , Online Advertising, Direct Response Medium, , Lead Generation Platform, Customer Service Mechanism and Relationship Building Medium.


Course : Research Methodology



Internal External

60 - - 04 25 Marks

75 Marks



10 Marks 15 Marks



Learning Objectives

- To Understand the basics of Research - To Understand statistical tools, various data collection and analysis methods - To Understand preparation of research report

Learning Outcomes

- Learner can undertake small research project - Learner will learn to apply various research and statistical techniques to collect and analyses

data - Learner will be able to draft report on research

Pedagogy




Duration of Module

Reference Book

I 1. Introduction to Research

Introduction and Meaning of Research, Objectives of Research, Features and Importance of Research in Financial markets,

Types of Research - Basic, Applied, Descriptive, Analytical and Empirical Research.

Formulation of Research


15 lectures

Research Methods in Accounting, Malcolm Smith • Research Methods and Methodology in Finance and Accounting, by Viv Beattie and Bob Ryan

Problem : Meaning and Selection

Review of Literature

II 2. Research Design in Financial market

Meaning of Introduction, Need, and Good Research design.

Hypothesis : Formulation, Sources, Importance and Types, Testing of hypothesis– One Sample T- Test, ANOVA, F- test, Chi Square and Paired Sample Test

Different Research designs

Lecture method, Debates, Group Discussions, Group activities, Research project,

15 lectures

Research Methodology (2014) – Deepak Chawla and Neena Sondhi, Vikas Publishing House.

III 3. Data Collection and Processing

Data Collection : Introduction and Meaning, Types of Data

Primary Data : Observation, Experimentation, Interview, Schedules, Survey, Questionnaires, Limitations of Primary Data

Secondary Data : Sources and Limitations

Factors affecting the choice of method of data collection

Sampling : Significance, Methods, Factors determining sample size, methods of sampling

Data Presentation :

Lecture method, Discussions, Class activity & written assignments , Research project

15 lectures

Significance in Research, Stages in Data Processing : Editing, Coding, Classification, Tabulation, Graphic Presentation

Statistical Analysis : Tools and Techniques, Measures of Central Tendency, Measures of Dispersion, Correlation Analysis and Regression Analysis.

Use of Computer and Internet in Data Collection and Processing

Advanced statistical techniques

Introduction, Characteristics and Application of Correlation and Regression Analysis , Factor Analysis, Cluster Analysis, Discriminant Analysis, Multidimensional Scaling

IV 4. Interpretation and Report Writing

Meaning and Techniques of Interpretation, Research Report Writing : Importance, Essentials, Structure/Layout, Types


15 lectures

Documents

Programme : B. F.M. Semester III Course : Debt Market