This course will provide an understanding of the functions, and operations of the financial markets and institutions operating in India. It explains the role of financial system on economic development. Various conceptual issues related to risk and return, the role of regulatory bodies, mechanism of commercial banking, operations of insurance companies and mutual funds are discussed elaborately. It also describes the importance of small savings, provident funds, pension funds and credit rating agencies. The course provides a comprehensive overview and systematic evaluation of the mainstream markets of various financial instruments such as call money, bond, stock, derivatives and exchange rate.
INTENDED AUDIENCE: Economics, Commerce and MBA Finance
CORE/ELECTIVE: Core
UG/PG: UG and PG
PREREQUISITES: None
INDUSTRY SUPPORT: Financial Consulting Companies, Regulatory Bodies like RBI, SEBI, IRDA, PFRDA
5686 students have enrolled already!!
ABOUT THE INSTRUCTOR:
Jitendra Mahakud is Professor of Economics and Finance at the Department of Humanities and Social Sciences, Indian Institute of Technology Kharagpur. He is also a joint faculty at the Vinod Gupta School of Management, IIT Kharagpur, in the area of finance. He obtained his PhD from the Indian Institute of Technology, Mumbai. He has published more than 50 papers in leading national and international journals. He has co-authored a book titled Financial Institutions and Markets: Structure, Growth and Innovations published by cGraw Hill Education. He has edited two books one on Advances in Research in Business and Finance (Corporate Finance) and the other on Advances in Research in Business and Finance (Investment Management). His areas of teaching and research include financial markets and institutions, corporate finance, investment management, financial economics, behavioural finance and banking.
COURSE LAYOUT:
Week 1 : Introduction to Financial System and Economic Development Indicators of Financial Development Week 2 : Concepts Related to Financial Markets and
Institutions ·Concept of Risk ·Concept and types of return and yield ·Asset Pricing Models ·Valuation of Assets
Week 3 : Theories of Level and Structure of Interest Rates
Week 4 : Financial Regulations and Regulatory Institutions in India (RBI,SEBI,IRDA,PFRDA)
Operating Procedures of Monetary Policy
Corporate Governance and SEBI Week 5 : Commercial Banking • Role of Banks • Banks’ Financial Statement •Banks’ Computation • International Banking • NPA • Risk Management in Banking Week 6 : Other Important Financial Institutions – I (Provident Fund, Pension Fund, Insurance Companies) Week 7 : Other Important Financial Institutions – II (Mutual Fund, Credit Rating Agencies, Merchant Bank, Venture Capital Funds) Week 8 : Money Markets in India (Call Money Market, Treasury Bill, Commercial Paper, Certificate of Deposit) Week 9 : Bond Market • Bond Features • Bond Price Volatility • Government Security Market • Corporate Bond Market • Public Sector Undertaking Bonds Week 10 : Classification of Stock Market and Securities • IPO • Stock Exchanges • Stock Market Indices • Market Micro-Structure in Stock Market Week 11 : Derivatives Market ·Types of Derivatives ·Important Concepts used in Derivatives Market ·Pricing of Futures, Options and Swaps
Week 12 : Foreign Exchange Market • Foreign Exchange Market Structure • Risk Management in Foreign Exchange Market • Exchange Rate Determination • Foreign Capital – FDI & FII • Central Bank Intervention in Foreign Exchange Market
SUGGESTED READING MATERIALS:
(1)Financial Institutions and Markets: Structure, Growth and Innovations by L.M. Bhole and J. Mahakud, 6th Edition, McGraw Hill Education, Chennai, India (2) Financial Markets and Institutions by Frederic Mishkin and Stanley Eakins, 8th Edition, Pearson Education (3) Financial Institutions & Markets by Jeff Madura, 10 edition Cengage (4)Bond Evaluation, Selection and Management by R. Stafford Johnson, 2nd Edition, John Wiley & Sons, Inc. Hoboken, New Jersey (5)Analysis of Investments and Management of Portfolios by Frank Reilly and Keith Brown, 10th Edition, Cengage Publication.
CERTIFICATION EXAM :
The exam is optional for a fee.
Date and Time of Exams: April 27 2019(Saturday). Morning session 9am to 12 noon; Afternoon Session 2pm to 5pm.
Registration url: Announcements will be made when the registration form is open for registrations.
The online registration form has to be filled and the certification exam fee needs to be paid. More details will be made available when the exam registration form is published.
CERTIFICATION:
Final score will be calculated as : 25% assignment score + 75% final exam score
25% assignment score is calculated as 25% of average of Best 8 out of 12 assignments
E-Certificate will be given to those who register and write the exam and score greater than or equal to 40% final score. Certificate will have your name, photograph and the score in the final exam with the breakup.It will have the logos of NPTEL and IIT Kharagpur.It will be e-verifiable at nptel.ac.in/noc.
