K.J.

Somaiya Institute of Management Studies and Research Session Plan for Batch 2012-14 Programme Trimester/Semester Faculty MMS III Semester Prof. Nupur Gupta Bhattacharya Financial Markets & Institutions Full Credit. 100 Marks Faculty e-mail id Faculty intercom number Students Contact hours Lecture Timings nupur.b@somaiya.edu 3101 Monday & Thursdays between 4.30 pm to 5.30 pm Thursdays: 11 am 1.50 pm

Course

Credit-Full /Half

1. Course Objectives : The objective of the course is to provide a comprehensive understanding about financial markets, their players and instruments. The focus will be on the understanding of the basic theory of asset demand and determination of asset prices , the role of arbitrage and profit motive in financial markets and the the role of information in financial markets.

2. Course content / Coverage (brief): A great part of the course will then be used to cover in more detail specific aspects of the equity, debt and mutual funds markets. Emphasis will be put on their players and instruments, with the objective of providing a more detailed knowledge about risk/return characteristics and price determination.

3. General Description of Pedagogy : Lectures, Numerical questions crunching, cases / case lets and discussion in the class. Emphasis will be given on participative study.

4. Student learning outcomes from the course: It is expected that students will develop critical skills in assessing the relevance of the principles of finance and financial intermediation to real world situations, and to better understand the role that financial markets play in the business environment and the effects of economic developments and policy interventions.

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5. Session Details: Sr. No. of Lecture 1

Topics to be covered

Book

Chapter No (s).

Introduction to Financial Markets - Types - Advantages Introduction to Stock Markets - Understanding Risk & Return

Anthony Saunders Prasanna Chandra

1 1

Prasanna Chandra

2-5

Stock Markets -CAPM, Systematic / Unsystematic Risk -Returns of Indian Markets vis-a vis Developed, BRICS and Asia Pacific economies -Fundamental drivers of Value stocks/ market index -Introduction to Portfolio Management theory - Relative valuation Measures -Understanding market efficiency Prasanna Chandra 7,8,9 Fischer & Jordon 3, 16,19

Determinants of Interest rates & Money Markets -Determinant of interest rate level -The term structure of Interest rates and their causes -Money supply and Demand - Various Money Market instruments and their yield measurement

Anthony Saunders

2,5

Fischer & Jordon

7-9

Bonds -Types of Bonds -Bond mathematics (YTM, current

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Fischer & Jordon

9,10,11

yield, ZCB) -Systematic and unsystematic Risks in Bond Investments -Duration & immunization -Interest Rate Risk Management 10-11 Mutual Funds - Structure & Regulations -Types of MFs & investment options- SIP, STP, SWP -NAV computation -Evaluating Fund Performance 11 Introduction to Derivatives & Risk Management Khan & Jain 28 AMFI Workbook / Faculty provided Study material Prasanna Chandra 11,12

Anthony Saunders 12 Foreign Exchange Markets -Foreign Exchange Markets & dealings -Three types of arbitrageGeographical, Triangular & Covered Interest -Determinants and select theories of Exchange rates 13 Investment Banking - Products and Role - IB Vs Commercial banking - IPOs, ADR/GDR, Buy Backs 14-15 Student presentations, Cases , Discussion and Quiz Faculty will provide case lets & numerical questions for practice Gurusamy / Multiple references Anthony Saunders

10*

9*

Khan & Jain

34

Relevant Chs

* Chapter number may change in the latest edition 6. Required text & Course Materials :
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(1) Prasanna Chandra: Investment analysis and Portfolio Management, 3rd edition, TMH (2) Fischer & Jordon: Security Analysis and Portfolio Management, 6th edition, Pearson (3) Anthony Saunders: Financial Markets and Institutions, 3rd edition, TMH 7. Optional Course Materials & Readings: Give details of reference books, journalsnational/international (1) Khan & Jain: Financial Management Text, Problems and cases, 5th edition TMH

(2) Dr. S Gurusamy: Financial Markets & Institutions / Financial Services and Markets, 3rd Edition, TMH (3) Course Material of CFA Institute level II A) Work Book references: AMFI Course material, NCFM course material B) Website references: www.eurojournals.com www.yahoo.finance.com www.valueresearchonine.com

C) Journals: Journal of Finance Indian Journal of Finance Social Science Research Network ICFAI Journal Publications 8. Assessment Criteria: Component Attendance , Class Participation & Overall Conduct Project followed by presentation Periodical Quizzes & Assignments NSE- AMFI / Derivatives Certification/ FIMMDA Exams (End-Term)

Weightage 10% 10% 20% End Term 60 %

Description Minimum 75% attendance mandatory. Group Project on Equity Markets using Ms Excel Timely submission of assignments. Scheduled or surprise quizzes It is highly desirable that Students clear any one of the given NCFM modules Duration of exams as per standard exams practice
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Note: A Student has to separately secure minimum 50% marks (i.e 20 out of 40) in the internal assessments and secure minimum 50% marks (i.e 30 out of 60) in the Semester End Examination in every subject to be declared as Pass.

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