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FIM-X13
PGDM-PT 2013-16: Term-I

Course Name : Financial Institutions and Markets


Credits 2.0
Faculty Name Dr Soumya G Deb
Program EXPGP(PT)
Academic Year and Term 2013-16 batch
Term -1


1. Course Description: The course presents Financial Markets theory and applies it towards gaining an understanding of how financial markets and institutions work. Financial markets and institutions not only affect our everyday life but also involve huge flows of funds and have a significant impact on business profits, production of goods and services, and the well-being of the overall economy. The objectives of this course are: (1) to provide a solid theoretical understanding of the fundamentals of financial markets like equity markets, bond markets and money markets and the financial assets that change hands over there(2) to discuss different types of financial institutions such as banks and investment intermediaries and what benefits they extend to the business world. Financial Institutions and Markets course(along with basic Corporate finance course) will provide a foundation for the participants’ further study of Finance, as well as form an essential component of their managerial education about the world in which their business is likely to operate.

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

· Be able to : have basic idea about the various components of the financial system i.e financial markets, financial institutions and intermediaries and savers and borrowers.

· Be able to ….understand the functioning of various financial markets like money markets, bond markets and stock markets. · Be able to … have a broad overview of the financial institutions and intermediaries and their contribution towards functioning of the financial system.

3. Required Text Books and Reading Material

A.

a. Class discussion ppts: Slides will be elaborate and made available to the students for reference
b. Financial Institutions and Markets by F S Mishkin, and S G Eakins ( Pearson Education )
c. Financial Markets and Institutions, 3rd Edition, by Anthony Saunders and Marcia Cornett, (Tata McGraw Hill).
d. Foundations of Financial Markets and Institutions, 3rd Edition, by Fabozzi, Modigliani, Jones and Ferri (Prentice-Hall, 2003).
e. Financial Institutions and Markets, 3rd Edition, by L. M. Bhole (Tata McGraw Hill)
f. Financial Markets and Institutions ,2nd edition by S Guruswamy(Tata McGraw Hill)
g. For some concepts students might be requiring to refer to Corporate Finance books like Brealey Myers or Ross Westerfield and Jordan
h. Other relevant readings will be mentioned and made available to the students from time to time in class.

B) Financial Press:

a. Economic Times , www.economictimes.com
b. The Wall Street Journal, www.wsj.com
c. The Economist, www.economist.com
d. Financial Times, www.ft.com
C) Internet resources

a. Study Materials available at http://www.nseindia.com/content/ncfm/ncfm_curriculum.htm

b. www.bseindia.com-- Official website of Bombay (Mumbai) Stock exchange
c. www.rbi.org.in--- Official website of reserve bank of India
d. www.amfiindia.com--- Official Website of AMFI ( Association of Mutual Funds in India )
e. Other sources will be intimated during the course


4. Tentative Session Plan
Session NumberTopics/ActivitiesReading/case list etc.
1,2• Introduction to Financial system
• Role of Financial Intermediaries 		Handouts , Mishkin and Eakins : relevant portions
2,3,4• Equity and equity markets : Equity as securities, salient properties, Basic Idea about price and risk of equity,
• Primary markets :
• Seasoned Equity Offers ( SEOs),
• Secondary Markets, 		---do----
4,5 • Bonds and Bond Markets
• Plain Vanilla Bond ,Issuer, time to maturity, principal and coupon rate, Pricing of a bond, Risks in a bond, duration, different types of bonds, state of bond markets in India		---do----
5,6 ,7• Session 5,6,7 : Money Market
• Treasury Bills.
• Call Money/Notice Money,
• Repurchase Agreements (Repo),
• Commercial Paper (CP):
• Certificate of Deposit ( CDs)
• Bill of Exchange/ Bill Discounting 		---do----
8,9• Financial Institutions
• Mutual Funds , Venture Capital Funds and hedge Funds
· Commercial banks : very brief overview( if time permits)		---do----
10Assignment presentations :


5. Evaluation :

i) Quiz: (20%): There will be a single quiz of weightage 20%. ii) Assignment with presentation: (20%) iii) End term : ( 60% )

6. Academic Integrity: Students involved in academic dishonesty will receive a ZERO grade on the particular component in which the violation occurred. Academic dishonesty consists of misrepresentation by deception or by other fraudulent means such as copying or use of unauthorized aids in tests, talking during in-class examinations; aiding another student’s dishonesty; and giving false information for the purpose of gaining credits.

Created By: Debasis Mohanty on 06/22/2013 at 09:40 AM
Category: ExPGP-I Doctype: Document

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