NATIO

ONAL STOCK
S
EXCHA
ANGE OF INDIA
A LIMITE
ED
Depart
rtment : SB
BU-Educatio
on
NCFM
M COURS
SE OUTLINE
FIMMDA-NSE Deb
bt Market (Basic) Mod
dule

Debt Instruments
Basic conce
epts of debt in
nstruments

Indian Debtt Markets

Different typ
pes of produc
cts and particcipants; Seco
ondary market for debt innstruments

Central Gov
vernment Se
ecurities: Bo
onds
Primary issu
uance proces
ss; Participan
nts in Govern
nment bond markets; Coonstituent SG
GL accounts;
Concept of Primary
P
dealers, Satellite
e dealers; Se
econdary markets for Govvernment bonds; Settlem
ment
of trades in G-Secs;
G
Clea
aring corpora
ation; Negotiiated Dealing
g System; Liqquidity Adjus
stment Facilitty
(LAF).

vernment Se
ecurities: Trreasury Bills
s
Central Gov
Issuance pro
ocess; Cut-O
Off yields; Invvestors in T-B
Bills; Second
dary market aactivity in T-b
bills.

State Goverrnment Bon

nds
Gross fiscal deficit of sta
ate Governm ents and its financing; Vo
olume, Couppon rates and
d ownership
pattern of Sttate Governm
ment bonds.

Call Money Markets

Participants in the call markets;
m
Call rates

D
Bonds
s
Corporate Debt:
Market segm
ments; Issue process; Isssue managem
ment and Book building; Terms of a debenture
d
isssue;
Credit rating
g.

Commercia
al Paper & Certificate
C
off Deposits
Guidelines fo
or CP Issue; Rating notcches for CPs;; Growth in th
he CP markeet; Stamp du
uty; Certificattes of
deposit.

Repos
C
settlement am
mounts in Re
epo transactio
ons; Advantaages of Repo
os; Recent
Repo rate; Calculating
issues in rep
po market in India; Secon
ndary markett transactions in Repos; R
Repo accoun
nting.

Bond Marke
et Indices an
nd Benchma
arks
I-Bex: Soverreign bond in
ndex; NSE-M
MIBID/MIBOR
R

Trading Mechanism in the NSE-WD

DM
Description of
o the NSE WDM
W
trading
g system; Ord
der types and conditions ; Order entry
y in negotiate
ed
trades market; Order validation and m
matching; Trrade manage
ement; Repoorts; Settleme
ent; Rates off
brokerage.

dural Aspectts
Regulatory and Proced
2
SEBI (Issue and Lissting of Debtt Securities) Regulations 2008 and Market Practicces
G-Sec Act 2006;
and Procedu
ures

Regd.Offfice:Exchan
ngePlaza,Ba
andraKurlaCComplex,Bandra(E),Mu
umbai400 051Page 1 of 2

Valuation of Bonds
Bond valuation; Accrued interest; Yield; Weighted yield; YTM of a portfolio; Realized yield; Yield-price
relationships of bonds

Yield Curve and Term Structure of Interest Rates

Yield Curve; Bootstrapping; Alternate methodologies to estimate the yield curve; Theories of the term
structure of interest rates

Duration
Introduction and definition; Calculating duration of a coupon paying bond; Computing duration on
dates other than coupon dates; Modified duration; Rupee duration; Price value of a basis point;
Portfolio duration; Limitations of duration

Fixed Income Derivatives

Concept of fixed income derivatives; Mechanism of forward rate agreements; Interest rate swaps

Regd.Office:ExchangePlaza,BandraKurlaComplex,Bandra(E),Mumbai400051Page 2 of 2