I Course Objectives: This course is designed to give a broad idea about the nature and working of the different segments of the financial markets and various types of institutions. The themes outlined would require a lot of cross-referencing as such should not be seen as watertight compartments. The discussion will be centering round the Indian context so that participants can relate what is covered in the class room to what is happening around them in the real life situations and appreciate the subject of discussion. Module-1 Broad Context (2 sessions) 1.1 Financial Sysems Ø Stylized facts about the working of the financial system Ø Why Financial Institutions Exist? – Adverse Selection and Moral Hazard Ø The Nature and role of Financial Institutions. Ø Classification of financial systems - Bank Based Vs. Market Based 1.2. An Overview of Indian Financial System: Pre and Post financial reform periods 1.3. Regulatory Institutions ü RBI: Objectives, Instruments and Outcomes ü SEBI: Objectives and Outcomes Module-2 Financial Markets (4 sessions) Emphasis will be on the major reforms in the different segments of the money market. 2.1Money Market Importance and evolution of the Money market Money Market: Players, Instruments and Infrastructure Segments of Money Market - Call Money, Repo, Commercial Paper Certificate of Deposits 2.2 G-Sec Market Importance and evolution Players, Instruments and Infrastructure Auctioning system of G-Secs 2.3 Capital Market Emphasis will be on the major reforms in the different segments of the equity market Rationale, functioning and working of the primary and secondary markets Reforms in the Capital Market - Changes in the Settlement system Novation and role of Clearing Corporation Demutualisation, Dematerialization of securities, Depository / Depository Participant etc. stock market index: Construction of and its limitations, Revision in Index 2.4 Corporate Debt Market Nature, Structure and reforms Module -3 Financial Institutions (4 sessions) Focus will be on major changes in different segments of the following financial institutions 3.1 Banking Institutions ü Structure of the banking system in India ü Structural Changes ü Prudential norms ü Basel -I and II ü Financial Inclusion Focus will be on Major reforms in the Banking Sector. 3.2 Mutual Funds ü Different types of Mutual fund schemes ü Measuring performance of a mutual fund scheme ü Load or no-load fund Special Topic Reforms in the Insurance and the Pension Sector Non-Banking Financial Institutions: Role, function and future perspective Readings Financial Institutions and Markets- Mishkin and Eakins 5th edition) Financial Institutions and Markets- L.M.Bhole Indian Financial System - M.Y.Khan Financial Institutions and Markets- S. Guruswamy Report on Currency and Finance- Reserve Bank of India (Various issues and especially 2005-06 and 2006-06) Annual Report- Reserve Bank of India (Various Issues and especially 2007-08) Report on Trend and Progress of Banking in India (various Issues and especially 2007-08) (Check out for the latest editions of the Indian Authored Books) Evaluation Pattern