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FIM-P12
PGDM 2012-14: Term-I

Course Name: FINANCIAL INSTITUTION AND MARKET (FIM)
Credits 1.5 Credits
Faculty Name Asit Mohanty
Program PGDM I
Academic Year and Term 2012 – Term I

1. Course Description
Module 1 : An Overview of Indian Financial System ( 2 sessions)

Session 1 &2:

Ø Categories of Financial Institutions
Ø Saving and Investment in the National Income Accounts
Ø The Market For Loan able Funds & Equilibrium Rate of Interest, Fisher effect, Term Structure of Interest Rate & Yield curve
Ø Asymmetry of Information, Moral Hazard and Adverse Selection
Ø The Nature and role of Financial Institutions
Ø Types and classification of Financial Markets

Module 2 : Financial Markets ( 2 sessions)

· Session 2 to 4:

Ø Sources and components of Money supply, Money Multiplier & Reserve Money
Ø Concepts related to Money Market, Day Count Convention, Call Money, T-Bills, Types of Auction and CBLO , Cash Flow in Repo & Reverse Repo Transaction in both the legs
Ø Role of Discount Houses & Discount of Commercial Bills, CP & its Cash Flow, CD& its Cash Flow& its Cash Flow

Ø Pricing of Bond
Ø Yield on Debt securities
Ø Quantification of Risk Ø Concept of Different types of Yield and their direction if price changes, Types of G-Sec
Ø Importance of G Sec (Gilt edged) as a Policy Tool
Ø Auctioning system( Price based & yield based) and Types of bidding s of G- Sec, When Issued Market Ø Primary Equity Market as significant provider of Capital & Transformation of Indian Capital Market, Types of order, Economics of Right Issues
Ø Margin Trading, Price of Margin call
Ø Secondary Equity Market Operation
Ø Stock Market Index, Construction of Value Index, Price Index, Unweighted Index
Ø Valuation of stock: Single Period Model, Multi Period Model, Infinite Period Model PE Multiple, P/BV Ratio, Price/Sales Ratio
Ø Pricing of IPO
Ø Book Building Process
Ø Concept and Evolution of mutual funds
Ø Structure of Mutual Fund
Ø Various types of mutual fund products
Ø Performance Indicators

Module 3: Financial Institutions (4 sessions)

· Banking Institutions
Ø Banking Products & Balance Sheet Analysis
Ø Ratio Analysis, Liquidity and Mitigation Process
Ø Solvency Issues and Mitigation Process
· Mutual Funds
Ø Regulations of mutual fund Industry
Ø Trends in mutual fund Industry
· Insurance and the Pension Sector

· Non-Banking Financial Institutions
Special session :

· Securitization : A Primer
· Recent Issues in Financial Sector
· Sub Prime Crisis and its aftermath
· Private Equity Market

2. Student Learning Outcomes (typically 3-5 bullet points)

· The students will able to make out from the financial news paper and discussions.
· Provides foundation on Basics of Financial Markets
· The Financial Intermediation process and inter relationship between financial intermediation and financial markets
· The regulatory and policy framework within which intermediaries, Markets and Participants evolve and operate
· The complexities arising from globalization and innovative financial Products
· Policy and Regulatory Changes in the financial system for emerging economies like India.
· This course will deal with financial market instruments and to some extent certain aspects associated with pricing of these instruments.
· The focus of this course will be to view the financial systems from regulatory and policy perspective in both in Indian and International context so that the students can get a broader perspective in Financial Institution and Market.

3. Required Text Books and Reading Material

Term Book

1. Financial Institutions and Markets, by L. M. Bhole (TMH)
2. Indian Financial System - M.Y.Khan (TMH)
3. Power Points as discussed in the classroom

Reference Material

§ Report on Currency and Finance- Reserve Bank of India
§ Annual Report- Reserve Bank of India

Financial Website :

v Business Standard : www.business-standard.com
v The Live Mint : www.livemint.com
v www.bis.org: The Bank for International Settlements (BIS) is an international o rganisation which fosters international monetary and financial cooperation and serves as a bank for central banks.

4. Tentative Session Plan ( Indicated in Point 1)
Session NumberTopics/ActivitiesReading/case list etc.

5. Evaluation
Components
Weights (%)
Two Quizzes
20%
Tem paper
50%
End Term
30%

6. Academic Integrity

· Academic Integrity will be adhered as per the norms and policy given by the Institute.
· Students identified with side talking will be asked to leave the class immediately.
· Cell phone will be seized if it rings in the class and will be handed over to the Dean’s office
· Students who have not completed assignment given in the previous class will not be permitted for next class.
· Class-participation is an integral component of the learning process. CP includes the attendance & discipline in the classroom. The weight from -20% to +10% will be given depending upon the above criteria.
Created By: Debasis Mohanty on 06/11/2012 at 09:51 AM
Category: PGDM-I Doctype: Document

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