Course Title

F202
Term(s)
Course
Credit

Introduction to Financial Markets and Services

F310
Term I&II
3

Introduction
The purpose of this course is to provide an understanding of the structure, operations and trends in the capital market, fixed income
securities market, money and forex market. The purpose of the course is to provide a sound information and knowledge of
broad framework of Financial System and its constituents. The course will provide the students an understanding of
the inter-linkages and regulatory frame-work within which the system operates in India. The course would also help
student to understand financial services offered in Indian context.
Course Objectives:

1. To Familiarize students with financial markets i.e., Indian capital market, bond market, forex market and
money market, instruments available, Issuers, intermediaries, investors.

2. To introduce students to various financial services available in Indian market and their nature of operations.

Prerequisites:

None
SESSION PLAN

Total # of Modules = 3(30 sessions of 1 hour each)

#
Topic

Module 1: Financial Markets

Financial System- introduction, functions,
organisation

Type of
Session
Lecture and
class
1

Training Aids

Laptop
&Projector

Preparation

Ch. 1 & 2 - Indian

Financial System by

Learning
Objectives

discussion

2&3

Primary Market Organisation intermediaries,

activities and procedures, fixed price, book
building,merchant bankers, over pricing and under
pricing

4,5&
6

Secondary Market Organisation introduction, stock

Lecture and
broking, custodial services, depository system, short
class
selling and securities lending and borrowing scheme,
discussion
2008

Class
discussion
(assignment)

Laptop
&Projector

Laptop
&Projector

Laptop
&Projector
7&8

Financial Markets- functions and organisation,

regulatory framework

9,10

Money Markets introduction, organisation, role of

Central Bank, Instruments

11,12
,13

Bond market- introduction, org, role, issuers,

investors, primary dealers

Class
discussion

Lecture and
class
discussion
Lecture,
Problem
Solving
2

Laptop
&Projector

M Y Khan, Mc Graw
Hill Education
Ch. 6 & 7 - Indian
Financial System by
M Y Khan, Mc Graw
Hill Education

Ch. 8 - Indian
Financial System by
M Y Khan, Mc Graw
Hill Education

Ch. 3 & 4 - Indian

Financial System by
M Y Khan, Mc Graw
Hill Education

Ch. 9 - Indian
Financial System by
M Y Khan, Mc Graw
Hill Education
Ch. 17 - Indian
Financial System by
M Y Khan, Mc Graw

GLG 4L1,L2,L3

14,15

16,17

18,19

20,21

Laptop
&Projector

Hill Education

Laptop
&Projector

Ch. 10 - Merchant
Banking and Financial
Services by MadhuVij
and Swati Dhawan,
Mc Graw Hill
Education

Forex market- introduction, exchange rate,

intermediaries, arbitrage
Module 2: Financial Intermediaries and other
Financial Services

Non Banking Finance Companies meaning,

activities, classification, importance and challenges
faced by NBFCs

Mutual Funds: Concept, organisation, Schemes,

valuation of mutual funds, measuring fund returns,
regulations

Hedge Funds and Private Equity- general partners,

limited partners, private equity deals, PE returns,
hedge funds, emerging trends and challenges

Lecture and
class
discussion

Lecture and
class
discussion

Lecture and
class
discussion

Laptop
&Projector

Laptop
&Projector

Ch. 11 - Merchant
Banking and Financial
Services by MadhuVij
and Swati Dhawan,
Mc Graw Hill
Education
Ch. 13 - Merchant
Banking and Financial
Services by MadhuVij
and Swati Dhawan,
Mc Graw Hill
Education

22,23

24,25

26

27

Leasing elements, of a lease transaction, need for

lease, types of lease, limitations, financial evaluation
of lease transactions

Factoring and Forfaiting - mechanisms of factoring,

types of factoring, difference between Bill
discounting and factoring, forfaiting in India,
forfaiting and the SME sector

Microfinance Institutions meaning of microfinance

and MFIs, microfinance structure and models in
India, micro finance institution model

Venture Capital- key aspects, factors affecting

venture capital investments, key advantages, how
VCs value business

Lecture and
class
discussion

Lecture,
Problem
Solving

Lecture and
class
discussion

Lecture and
class
discussion

Laptop
&Projector

Laptop
&Projector

Laptop
&Projector

Laptop
&Projector

Ch. 13 - Merchant
Banking and Financial
Services by MadhuVij
and Swati Dhawan,
Mc Graw Hill
Education
Ch. 17 - Merchant
Banking and Financial
Services by MadhuVij
and Swati Dhawan,
Mc Graw Hill
Education
Ch. 16- Merchant
Banking and Financial
Services by MadhuVij
and Swati Dhawan,
Mc Graw Hill
Education
Ch. 9- Merchant
Banking and Financial
Services by MadhuVij
and Swati Dhawan,
Mc Graw Hill
Education

GLG 4L1,L2,L3

26,27

28

29

Insurance basics of insurance, types, products,

need for insurance, underwriting, innovations in
insurance

Consumer Finance meaning types, drivers of

growth, concerns, types of credit cards, global
outlook

Lecture and
class
discussion

Laptop
&Projector

Laptop
&Projector

Ch. 7- Merchant
Banking and Financial
Services by MadhuVij
and Swati Dhawan,
Mc Graw Hill
Education
Harvard business publishing

INITIAL PUBLIC OFFERINGS

Colette Southam; Craig Dunbar; Jeff Lindqvist

30

Lecture and
class
discussion

Ch. 12- Merchant

Banking and Financial
Services by MadhuVij
and Swati Dhawan,
Mc Graw Hill
Education

Case study

Growing Financial Services in India: Aditya Birla

Financial services group: Paul M Healy,
RachnaTahilyani

Modules

Financial Markets

Financial services

ASSESSMENT PLAN - Internal

Type of
Weightage
Assessment

Assignments on
capital, bond, forex
and money markets
Case study,

Learning objective

20%

GLG- 4 &5

20%

GLG- 1, 4 &5
5

GLG 4L1,L2,L3
GLG 5
L1,L2L3

Harvard Business Publishing

Case Study

GLG 4L1,L2,L3

assignment on
NBFC, micro
finance, venture
capital
Standard Assessments
1
2

Mid Term Exam

End Term Exam

Total

20%
40%
100%

GLG-1, 4 &5
GLG-1, 4 &5

Reference Materials:

Core Text :
1. Indian Financial System by M Y Khan, Mc Graw Hill Education
2. Merchant Banking and Financial Services by MAdhuVij and Swati Dhawan, Mc Graw Hill Education
Reference/ Reading :

Bhole, L.M. , Financial institutions and Markets: Structure, Growth and Innovations, McGrawHill, New Delhi

Fundamentals of Financial Instruments by Sunil Parameswaran, WILEY India.

Securities Operations by Michael Simmons, WILEY India.

Fabozzi, Frank J. and Modigliani, Franco, Capital Markets: Institutions and Markets, Prentice Hall of India