Documente Academic
Documente Profesional
Documente Cultură
Unit I
Overview of Capital Market: Market of securities: Stock exchange and New Issue Market their nature, structure, functioning and limitations. Trading of securities: equity and debentures/ bonds. Regulatory Mechanism: SEBI and their guidelines. Investor protection.
Unit II
Valuation of Equity: Measures of risk and return: calculation, trade off, systematic and unsystematic. Equity valuation models. Analysis of equity Investment: Technical and fundamental approaches- company, industry and economy analysis Nature of stock market: EMH and its implications for investment decision.
Unit III
Other Instruments: Bonds: nature, valuation. Bond theorem; Term structure of interest rates. Duration. Derivatives: Options and futures: meanings, trading, valuation
Unit IV
Portfolio analysis and selection: Portfolio: concept, risk and return. Beta as a measure of risk: calculation. Selection of portfolios; Capital market theorem and Arbitrage pricing theory. Portfolio Management and Performance evaluation: Performance evaluation of existing portfolio; Sharpe and Treynor measures. Finding alternatives and revision of portfolio; Portfolio management and mutual fund industry
SUGGESTED READINGS:
1. Chandra P- Investment Analysis and Portfolio Management Tata McGraw-Hill, 2004. 2. Fischer and Jordan- Security Analysis and Portfolio Management (Prentice-Hall, 6th edition) 1996. 3. Ranganatham- Investment Analysis and Portfolio Management (Pearson Education) 4. Pandian P- Security Analysis and Portfolio Management (Vikas )
INSURANCE MANAGEMENT
Unit I
Introduction to Risk Management : a. Identifying types of risks b. Management of Translation. c. transaction and economic Exposure d. Quantifying Risk and Hedging techniques. e. Internal and External Techniques viz Netting, Matching, Leading and Lagging. f. Price variation. g. Short Term borrowing. h. Pricing in Foreign Currency. i. Assets Liability Management.
UNIT II
Instruments of External techniques of Risk Management : a. Forwards b. Futures c. Swaps d. Options e. Forward Rate Agreement f. Caps g. Collars h. Floors and their applications i. Pricing techniques j. Operational aspects.
UNIT III
Life Insurance : a. Principles of Life Insurance b. Financial Planning and Insurance c. Life Insurance Products d. Pensions and Annuities e. Risk Assessment & Underwriting f. Premium Setting g. Product Development h. Design and Evaluation i. Reinsurance j. Claims Management k. Marketing and Servicing l. IT Applications m.Tax planning n. Legal Framework
UNIT IV
General Insurance : a. Principles of General Insurance b. General Insurance Products (Fire, Motor & Health) c. Terminology d. Perils e. Clauses and Covers f. Risk Assessment & Underwriting g. Product Design h. Development and evaluation i. Loss prevention and control j. Claims Management k. Reinsurance l. Marketing and Servicing m. IT applications n. Legal framework and documentation
Books Recommended:
1. Options and Futures- Hull 2. International Finance- A.V. Rajwade 3. International Finance- P.G. Apte 4. Commodity Futures & Options- George Kleiman 5. Principals of Insurance- Holioke 6. Principals of Insurance- Mishra
Unit II
Central Banking: RBI Role and functions Monetary Policy- tools & effectiveness. Commercial banking structure of Banking system in India, function of Commercial Banks, Management of Capital Funds in Commercial Banks.
Unit III
Securitization: concepts, nature, scope and their implications. DFIs in India ( IDBI, ICICI, IFCI, NABARD, RRBs), State Level Institutions, NBFCs. Insurance services: Life and General. Premium. Risk covered. Tax benefits. Mutual funds investment avenues. Returns and instruments.
Unit IV
Leasing and Hire Purchase: Industry. Size and scope. Parties involved. Types of lease Hire purchase and lease- differences and implications. Others: Factoring, Forfeiting, Discounting and Re Discounting Of Bills, Consumer Credit and Plastic Money.
SUGGESTED READINGS:
1. Fabozzi- Foundations of Financial Markets and Institutions (Pearson Education, 3rd edition) 2. Khan M Y- Financial Services (Tata McGraw-Hill) 1998. 3. Machiraju H R-Indian Financial System (Vikas, 2004) 4. Bhole L M- Financial Institutions and Markets (Tata McGraw-Hill, 3rd edition, 2003) 5. srivastava, R.M:- management of Financial institutions (Himalva Pub)
Unit II
Exchange rate determination, forecasting, theories: Purchasing power parity, Interest rate parity etc. Foreign Exchange risk exposure: Types of risk: Economic and translations. Accounting treatment: tax treatment of gains and losses. Exchange Risk reduction: techniques: applications and their limitations. Hedging, swaps, futures, options . Relationship of Money market and foreign exchange market
Unit III
Financial structure and International financing: Optimal financial structure and MNE and their foreign subsidiaries; Eurocurrency markets; International debt markets; Management of interest rate risk: interest rate options, currency options etc.
Unit IV
Foreign investment decisions: Multinational capital budgeting; International portfolio theory and diversification; Repositioning of funds; Working capital management in MNE FDI and FII in India:
SUGGESTED READINGS:
1. Levi,Maurice D , International finance : The markets and Financial Management of Multinational Business , McGraw Hill 2. Bakker, A.F.P., International Financial Institutions ,Longman.london.
3. Kolb, Rebert W, The International and Finance, New Delhi Anmol, 4. Bhalla,V.K, managing International Investment and Finance, New Delhi Anmol, 5. Eaker,Mark,Fobozzi, Frank and Grant, Dwight, International Corporate Finance, for Worth: Dryden Press. 6. Baker, James C, International Finance : Management , Markets, and Institution ,New Jersey , Printice Hall.
Unit II
Tax on individual income : Salaries. Standard deduction . Valuation of perquisites calculation of tax etc. Tax deductible at Source .
Unit III
Corporate income Tax : Tax concession and incentives for corporate decision .Tax planning for depreciation; Treatment of losses & unabsorbed items : carry forward and set off losses .Tax and business reorganization : merger and amalgamation .Tax appeals: Revision & Review
Unit IV
Wealth Tax on closely held companies; valuation of assets ; Filing of returns ; Assessment ; Appeals; Review; Revision and Rectification Central Excise Act 1994 and excise planning ; customer protection Act 1962 and customers planning (working knowledge is required for these) SUGGESTED READINGS 1. 2. 3. 4. 5. 6. Bhatia H L Public finance (vikas) 1999,20th ed. Lakhotia R N- How to save wealth Tax (vision Book) 2001, 9th ed. Palkhiwala- Income Tax (tripathi publication ) Prasad Bhagwati- income Tax law & practice (vishwa prakashan) 1997 , 23 rd ed. santraram R-Tax planning by reports(taxman) singhania VK- Direct Taxes, law & practice (taxman) 2002..
SUGGESTED READINGS:
1. 2. David F Deresa- Current Derivatives: Pricing Theory, Exotic, Hedging Application Robert W. Kolb- Financial Derivatives
Derivatives Markets UNIT NEED FOR REGULATING Exchange Markets SECURITIES MARKETS IN INDIA -II :Foreign Protection to retail investor Portfolio Management Vanishing Project - I companies of nineties Pricing of IPO's & possible economic offences UNIT -III : LEGISLATIONS GOVERNING THE SECURITIES MARKETSMARKET GLOBAL CAPITAL CompaniesAct 1956 contracts Regulation Act UNIT -I :Securities IMPACT OF GLOBALISATION ON THE CAPITAL MARKETS SEBI Act Growing International Integration Depositors Act& Technology in Capital mobility Role of Media InsuranceAct Diversification benefits of global investment Special regulatory requirements of derivatives market UNIT -II : GLOBAL (INTERNATIONAL BOND MARKET) UNIT-IV Domestic : REGULATORY BODIES Bonds, Euro Bonds & foreign Bonds Department of Company affairs markets. Participants in the global bonds Department of Economics affairs Credit rating agencies & their role SEBI Procedure for issuing Euro Bonds RBI (www.irda.gov.in) UNIT -III IRDA : GLOBAL EQUITY MARKETS Need self markets regulation Major for stocks of the world Emerging stock markets International Equity Trading - Multiple Listing Depository receipts INSURANCE
(FUND) MANAGEMENT
UNIT -I -IV : OBSTACLES TO INTERNATIONAL INVESTMENTS UNIT : INTRODUCTION Information Barriers The Insurance Mechanism Foreign Exchange Risk of Insurance Fundamental Principles Political risks Importance of life & general insurance Taxation Growth of evolution of insurance business in India with specific reference to post liberalization Other Regulatory Barriers UNIT -II : IDENTIFICATION OF 'RISK' TO BE INSURED Sources of Risk Risk Identification "Insurance Policy" as a financial product UNIT -III : ORGANISING AN INSURANCE BUSINESS Types of Organizations Role of IRDA Procedure for setting up an insurance business UNIT-IV : OPERATIONAL ASPECTS OF INSURANCE BUSINESS Marketing insurance products including E-Marketing Actuarial role
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DERIVATIVE MARKETS
UNIT-I : NATURE OF FINANCIAL DERIVATIVES INCLUDING FUTURES & OPTIONS Characteristics of Derivatives, Underlying assets (Equity Bonds/Loans, Foreign currency & Commodity), Need for Derivatives, Types of Derivatives & Comparison between them, Forwards/Futures/Options, Participants in Derivatives Market (Hedgers, Speculators,Arbitrageurs). UNIT-II : PRINCIPLES OF TRADING & HEDGING WITH INDEX FUTURES Terminology - Spot, future price, contract specifications, contract cycle, expiry date, settlement date, basis, mark to market, Contract specification for BSE Sensex, Tick date, types of orders, trading strategies, Hedging Strategies, Initial, Maintenance Margins, Executing & Clearing, Execution, Matching confirmation, Clearing Mechanism,Settlementprice,Settlementcycle,cashvs.Physicaldelivery,"OpenInterest"&"TradingVolumes" UNIT- III : PRINCIPLES OF TRADING & HEDGING WITH OPTIONS Terminology - call, put, writer, buyer, premium, intrinsic value, time value, expiry date, settlement date, stock price, ATM, OTM & ITM, The Greeks -(Delta, Gamma, Theta, Vega) UNIT - IV : RISK MANAGEMENT SYSTEMS & PROCEDURES Types of Risks (Counter -party or credit risks, Market or price risks, liquidity risks, Legal & regulatory risks, Operating risks), Risk Identification & a measurement, Methods of risks control (Position Limits, VAR, Margins, operating Procedures & systems etc) Separation of trading, settlement, accounting & risk control functions, Internal control structure & Management Information System, Regulatory & external reporting.
Portfolio Management
Unit- I : Introduction A venues and Mult5iple Investments. Need for designing and Investment Portfolio. Relevance of Portfolio Management in different sectors of financial markets Popularity of equity portfolio management services Unit- II : Portfolio theory and application Markowitz portfolio theory Efficient frontier and investor utility The Capital Asset Pricing Model - Expected Return and Risk- Security Market Line (SML). Arbitrage pricing theory. Capital Market Line Unit - III : Performance Evaluation of a Portfolio Trenyor Portfolio Performance Measure - Optional Sharpe Portfolio Performance Measure - Optional Factors affecting performances measures, Reliability of Performance measures. EMH ( Efficient Market Hypothesis). Unit - IV : Performance Management Services in India. Portfolio management service providers in India. Procedure for setting up portfolio management services. Evaluation of present scenario and estimation of future prospects. Regulation of portfolio management services. Books for Reference 1. Portfolio Management, S. Kevin, Prentice Hall, 2004. 2. Pioneering, Portfolio Management, David F. Swenson, Free Press. 3. Taming Risk, Mark Fisher, Euro Money Books, 2005 4. Portfolio Management Formulas, Ralph Vince, John Wiley & Sons, 1990 5. TheArt of Investing and Portfolio Management, Mc-Graw Hill Professional 2004. 6. Active Portfolio Management, Richard Grin hold and Ronald Kahn, Irwin, 1999 7. InvestmentAnalysis and Portfolio Management Student Self Study Problems Manual Frank K.Reilly and Keith C.Brown South Western College Publishing, 1999