Course

OPEN ELECTIVES-UG (Arts , Humanities and Commerce)

Unit 1

Introduction to Financial Markets – Financial market, Overview of financial market, Distinction between money market and capital market, importance of financial markets in the economy.

Unit 2

Money Market Instruments and Operations – Meaning and definition of money market, Money market instruments- Treasury bills, commercial papers, certificates of deposit, repurchase agreements (Repos), money market mutual funds, role of central banks in money market operations.

Unit 3

Capital Market Instruments and Institutions – capital market, meaning and definition, capital market instruments- stocks (Equities), bonds (Fixed Income Securities),mutual funds, hedge funds, investment banks and brokerage firms, securities and Exchange Board of India (SEBI) regulations.

Unit 4

Regulatory Environment and Risk Management – role of regulatory bodies in financial markets, market risk, credit risk, and liquidity risk, risk management practices in money and capital markets, Basel norms and capital adequacy requirements

Unit 5

Market Analysis and Investment Strategies – fundamental analysis, technical analysis, efficient market hypothesis, investment strategies: value investing, growth investing, etc., portfolio management and diversification.

Course Objective:

To provide a wide range of investment opportunities to individuals and institutional investors. It plays a crucial role in financing domestic and international trade.

Course Outcomes:

The students will be able to:

CO1: To provide an understanding of the fundamentals of money markets and capital markets.

CO2: To familiarize students with the key participants, instruments, and operations in money and capital markets.

CO3: To explore the role of regulatory bodies and institutions in overseeing money and capital markets.

CO4: To analyze the relationship between money market and capital market in the overall financial system.

CO5: To develop critical thinking and analytical skills related to financial market activities.

Text books:

• Pandey, M. – Financial management – Vikas Publishing House
• Kothari, R. – Research methodology: Methods and techniques – New Age International

References:

• Mishkin, S., & Eakins, S. G. – Financial markets and institutions. Pearson Education
• Fabozzi, J., Modigliani, F., & Jones, F. J. – Foundations of financial markets and institutions – Pearson Education
• Bodie, , Alex Kane, Alan J Marcus – Investments – McGraw Hill
• Jeff Madura, – Financial Markets and Institutions – Cengage Learning
• John C Hull, Sankarshan Basu – Options, Futures, and other Derivatives – Pearson