Course

Unit 1

Structure of Financial System: Concept of financial system – importance in an economic system – capital and money markets – primary market and secondary market – their structure and importance – problems of the financial system in India – financial sector reforms, Financial Institutions.

Unit 2

Stock Exchange: Emergence of stock exchanges – Indian context – functions of stock exchanges – procedure of issuing new shares – formalities of listing – present scenario – control of stock exchanges – Role of SEBI – investor protection measures.

Unit 3

An overview of Financial Services: Concept, nature and scope of financial services – growth of financial services in India – Merchant Banking – meaning, types and responsibilities of merchant banks – regulations of merchant banking in India – leasing and hire purchasing – types of leases – discounting, factoring forfeiting – factoring in India.

Unit 4

Venture Capital: Concept of venture capital – growth of venture capital in India – financing pattern – securitization of debt – option vs. borrowing.

Unit 5

Credit Rating: Meaning of credit rating – functions of credit rating agencies – credit rating in India – CRISIL, ICRA and CARE – limitations of credit rating – mutual funds – rating of a mutual fund – functions and management of portfolio of a mutual fund.

Course Objective:
Financial markets have been increasingly influenced in recent times by financial innovations in terms of products and instruments, adoption of modern technologies, opening up of the market to the global economy, streamlining of regulatory frameworks and so on. Keeping this in view, the aim of this course is to make the students aware of the ever-changing scenario of financial markets and services.

Course Outcomes:

Textbooks:

1. Gordon and Natarajan – Financial Markets and Services – Himalaya Publishing House
2. M. Y. Khan – Financial Services – McGraw Hill

Reference Books:

1. Francis Cherunilam – Global Economy and Business Environment – Himalaya Publishing House
2. V.A. Avadhani – Marketing of Financial Services – Himalaya Publishing House.
3. Vasant Desai – Indian Financial System – Himalaya Publishing House