Indian Financial System: a complete guide to indian financial system Bba ifs
Indian Financial System 2012
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NIIT UNIVERSITY NEEMRANA 301705, Dist. Alwar (Rajasthan) FIN 511- Indian Financial System COURSE HANDOUT Semester: First Semester Session: 2012-13 Course No.: FIN 511 Course Title: Indian Financial System Lecture / Credit: 3 0 0 3 Course-in-Charge: Prof. Vivek Saxena Course Description: The goal of the course is to familiarize students with the Indian Financial System which consists of financial markets, financial intermediation and financial instruments or financial products. This course will give a brief introduction to the entire financial infrastructure in India. The financial institutions to be covered will mainly consist of commercial banks, co-operative banks, regional rural banks (RRBs), all-India financial institutions (AIFIs), non-banking financial companies (NBFCs) and microfinance institutions. The course will give an introduction to the banking sector which forms the bedrock of the Indian financial system, and the regulatory role and functions of the Reserve Bank of India (under the provisions of the Banking Regulation Act, 1949 and the Reserve Bank of India Act, 1934). The financial markets in India to be covered in brief will include the money market, the Government securities market, the foreign exchange market, the capital Market and the credit market, the major players as well as the regulatory bodies. Learning Outcomes: Indian Financial System-FIN 511 Page 1
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Course Description:The goal of the course is to familiarize students with the Indian Financial System which consists of financial markets, financial intermediation and financial instruments or financial products. This course will give a brief introduction to the entire financial infrastructure in India. The financial institutions to be covered will mainly consist of commercial banks, co-operative banks, regional rural banks (RRBs), all-India financial institutions (AIFIs), non-banking financial companies (NBFCs) and microfinance institutions. The course will give an introduction to the banking sector which forms the bedrock of the Indian financial system, and the regulatory role and functions of the Reserve Bank of India (under the provisions of the Banking Regulation Act, 1949 and the Reserve Bank of India Act, 1934). The financial markets in India to be covered in brief will include the money market, the Government securities market, the foreign exchange market, the capital Market and the credit market, the major players as well as the regulatory bodies.Learning Outcomes:Upon completing this course the students will be able - • To understand the fundamentals of financial markets. • To investigate impact factors of Money Market, Capital Market & Foreign Exchange Market• To understand the Need and Working of Financial Intermediaries • To understand the importance and various functions of Market Regulators 1. Lecture Plan:Session Topics1-2 Introduction to the Course, Pedagogy and The Nature and Role of Financial System (Discussion on Need and Importance of an Efficient and Organized Financial System) Chapter- 1, L M Bhole3 The Indian Financial System on the Eve of Planning and An overview of the Indian Financial System in the Post-1950 Period (Understanding the Developments and Changes in the structure taken place before and after the Planning Period)Chapter 3 & 4 L M Bhole 4 NPA and Securitization in IndiaChapter 4 L M Bhole (Pg. 97-135)5 Financial Sector Reforms (Discussion on Need and Impact of Major Reforms Chapter 5 L M BholeTo be presented by the students and further discussion in the class 6-7 The Reserve Bank of India(Introduction to RBI and Discussion on Role and Functions of Central bank, and understanding the Monetary Policy Mechanism) Chapter 6 L M Bhole8 The Securities and Exchange Board of India(Introduction to the Capital Market Regulator and discussion on its Powers, Scope & Functions)Chapter 7 L M Bhole9 The Primary MarketBook building, Green Shoe Option, Right issues, Bonus Issues, Private placements etc.Chapter-6, Bharti V.Pathak10 Commercial BanksChapter 8 L M Bhole11 Co-operative BanksChapter 9 L M BholeProject 1 Allocation12 Small Saving, Provident Funds, and Pension FundsChapter 10 L M Bhole13 Insurance Companies Chapter 11 L M Bhole14-15 Unit Trust of India and Mutual Funds & Computation of NAV Chapter 12 L M Bhole16 Non-Banking Financial Intermediaries & Micro – Finance InstitutionsA Case study of SKS Ltd. Chapter 13 L M Bhole 17 Non-Bank Statutory Financial OrganizationsChapter 15 L M Bhole18-19 Call Money Market, T-Bills, Gilt-edged Securities marketChapter-16-17, L M Bhole20 Commercial Bills Market Chapter – 18, L M Bhole21 Markets for Commercial Papers & Certificates of Deposits Chapter – 19, L M Bhole22 The Discount Market and Market for Financial GuaranteesChapter-20,21 L M BholeTo be presented by the students23 An Introduction to Risk-Return ConceptsChapter-2, L M Bhole24-25 Industrial Securities MarketTypes of shares and their face value, concepts of free-float and market capitalization, Various indices, The Primary Market, Book Building, Green Shoe Option, ASBA, Online IPO, Bonus issues, Right issues, Share Splits and Buybacks and their worthMargin Trading, Settlement, Circuit Breakers etc.Chapter – 23, L M BholeChapter-6,8 Bharti V. Path
Transcript of Indian Financial System 2012
NIIT UNIVERSITYNEEMRANA 301705, Dist. Alwar (Rajasthan)
FIN 511- Indian Financial System
COURSE HANDOUT
Semester: First Semester Session: 2012-13
Course No.: FIN 511Course Title: Indian Financial System Lecture / Credit: 3 0 0 3
Course-in-Charge: Prof. Vivek Saxena
Course Description:
The goal of the course is to familiarize students with the Indian Financial System which consists of financial markets, financial intermediation and financial instruments or financial products. This course will give a brief introduction to the entire financial infrastructure in India. The financial institutions to be covered will mainly consist of commercial banks, co-operative banks, regional rural banks (RRBs), all-India financial institutions (AIFIs), non-banking financial companies (NBFCs) and microfinance institutions. The course will give an introduction to the banking sector which forms the bedrock of the Indian financial system, and the regulatory role and functions of the Reserve Bank of India (under the provisions of the Banking Regulation Act, 1949 and the Reserve Bank of India Act, 1934). The financial markets in India to be covered in brief will include the money market, the Government securities market, the foreign exchange market, the capital Market and the credit market, the major players as well as the regulatory bodies.
Learning Outcomes:
Upon completing this course the students will be able -
To understand the fundamentals of financial markets. To investigate impact factors of Money Market, Capital Market & Foreign
Exchange Market To understand the Need and Working of Financial Intermediaries To understand the importance and various functions of Market Regulators
Indian Financial System-FIN 511 Page 1
1. Lecture Plan:
Sessio
n
Topics
1-2 Introduction to the Course, Pedagogy and The Nature and Role of Financial
System
(Discussion on Need and Importance of an Efficient and Organized Financial
System) Chapter- 1, L M Bhole
3 The Indian Financial System on the Eve of Planning and An overview of the
Indian Financial System in the Post-1950 Period (Understanding the
Developments and Changes in the structure taken place before and after the
Planning Period)
Chapter 3 & 4 L M Bhole
4 NPA and Securitization in India
Chapter 4 L M Bhole (Pg. 97-135)
5 Financial Sector Reforms (Discussion on Need and Impact of Major Reforms
Chapter 5 L M Bhole
To be presented by the students and further discussion in the class
6-7 The Reserve Bank of India
(Introduction to RBI and Discussion on Role and Functions of Central bank,
and understanding the Monetary Policy Mechanism) Chapter 6 L M Bhole
8 The Securities and Exchange Board of India
(Introduction to the Capital Market Regulator and discussion on its Powers,
Scope & Functions)
Chapter 7 L M Bhole
9 The Primary Market
Book building, Green Shoe Option, Right issues, Bonus Issues, Private
placements etc.
Chapter-6, Bharti V.Pathak
10 Commercial Banks
Chapter 8 L M Bhole
11 Co-operative Banks
Indian Financial System-FIN 511 Page 2
Chapter 9 L M Bhole
Project 1 Allocation
12 Small Saving, Provident Funds, and Pension Funds
Chapter 10 L M Bhole
13 Insurance Companies
Chapter 11 L M Bhole
14-15 Unit Trust of India and Mutual Funds & Computation of NAV
Chapter 12 L M Bhole
16 Non-Banking Financial Intermediaries & Micro – Finance Institutions
A Case study of SKS Ltd. Chapter 13 L M Bhole
17 Non-Bank Statutory Financial Organizations
Chapter 15 L M Bhole
18-19 Call Money Market, T-Bills, Gilt-edged Securities market
Chapter-16-17, L M Bhole
20 Commercial Bills Market
Chapter – 18, L M Bhole
21 Markets for Commercial Papers & Certificates of Deposits
Chapter – 19, L M Bhole
22 The Discount Market and Market for Financial Guarantees
Chapter-20,21 L M Bhole
To be presented by the students
23 An Introduction to Risk-Return Concepts
Chapter-2, L M Bhole
24-25 Industrial Securities Market
Types of shares and their face value, concepts of free-float and market
capitalization, Various indices, The Primary Market, Book Building, Green
Shoe Option, ASBA, Online IPO, Bonus issues, Right issues, Share Splits and
Buybacks and their worth
Margin Trading, Settlement, Circuit Breakers etc.
Chapter – 23, L M Bhole
Indian Financial System-FIN 511 Page 3
Chapter-6,8 Bharti V. Pathak
Project 2 Allocation
26 Markets for Futures, Options, and Other Financial Derivatives
Chapter 24 L M Bhole
27 Foreign Exchange Market
Chapter 25 L M Bhole
28-29 Functioning of Investment Banks, Depositories and Custodians, Role of Credit
Rating Agencies, IPO Grading etc., Brokerage Houses and latest trends in
Indian Financial Markets
30 Review and Concluding Session
2. Evaluation Scheme
There would be Surprise Class Tests, Presentation/VIVA, Mid Term Examination, Projects & Comprehensive Examination at the end of the Semester, details of which are as under. (TBA = to be announced)
Evaluation Instrument
Weightage Time Comment
Surprise Class Tests (2-4)
20% 10 Minutes each Surprise evaluation which is not announced in prior
Class Participation
10% Continuous evaluation
Class Participation
Mid Term Test 15% 1 hour Close Book
Project -1 10% Approximately 1 week for each
project
Written report to be submitted followed by the group
presentation/VIVAProject -2 15%
Comprehensive Exam.
30% 2 hours Close Book
3. Make up Policy
Students who miss an evaluation component will not be given any make-up test.
Indian Financial System-FIN 511 Page 4
4. Grading Policy
The Marks obtained in all the components of Evaluation shall be totaled and the final marks shall be converted in the letter grades, namely, A, B, C, D and F (= Fail).
The grading is relative and normally it is centered on the average in a class of considerably large size say 50, else it is absolute grading.
Mid-semester grading will be announced on completion of about 60% of the evaluation components.
The students who obtain F Grade shall repeat the course in the next offering of the course in the coming semesters.
5. Required Materials
Text Book
Financial Institutions and Markets by L M Bhole & Jitendra Mahakud, 5th Edition Tata McGraw Hill
Additional Reading
“The Indian Financial System – Markets, Institutions and Services” by Bharati V. Pathak, Third Edition (Pearson Education)“Indian Financial System” by M Y Khan, Sixth Edition (The McGraw-Hill Companies)“Capital Market: The Indian Financial Scene” by N Gopalsamy. (Macmilan India Ltd)“Capital Markets” by Dr. S Gurusamy. Second Edition. (Tata McGraw Hill).“Indian Financial System”by Varshney & Mittal, (Sultan Chand & Sons)
6. Web resources:
www.nseindia.com www.bseindia.comwww.moneycontrol.comwww.yahoofinance.comwww.amfiindia.comwww.sebi.gov.inwww.rbi.org.inwww.sidbi.comwww.nabard.orgwww.ncdex.comwww.mcxindia.comwww.otcei.netwww.livemint.com
Faculty can be reached at: vivek.1.saxena @niituniversity.in Ph-01494-302446
Indian Financial System-FIN 511 Page 5
