Course: B.

Com

SEMESTER III
TITLE OF THE SUBJECT Indian Financial System
COURSE CODE 04BC0306
DURATION 48

OBJECTIVES

 To make the students understand the nomenclature of Indian Financial System

 To outline the character and importance of the main financial markets,
Institutions, Services and Instruments.
 To update the students with recent changes that has taken place.

Course Duration:

The course duration is of 48 sessions of 60 minutes each.

Course Contents:

Unit Unit / Sub Unit Sessions

No
Unit An Introduction to the financial system 10
I
Overview of financial system: Formal and Informal- Difference,
Advantages and Disadvantages. Formal financial system: its
Constituents and inter-relationships among the components. Functions
of a financial system. Role of Financial System in Economic
Development
Financial regulation and regulatory Agencies (Primarily RBI,
SEBI & IRDA): Meaning, features and their kinds (tabular
representation of the various regulators, the markets they regulate).
Role and functions of RBI, SEBI and IRDA as regulator.

Unit Financial Institutions 10

II
Meaning, classification and types of financial institutions: Intermediary
financial institutions and non-intermediary financial institutions;
banking and non- banking. Features, Role/ functions Structure,
participants and importance of each kind of institution.

Page 1 of 3 Faculty of Liberal Studies – Bachelor of Commerce

 Unit Financial Markets 10
III
Meaning and Classification of financial markets (multiple ways to
classify)-, Money market, Capital Market- Primary And Secondary
Market, Forex Market, Debt Market. Features, Importance,
Role/functions, structure and participants of each market. Recent
Development in Indian Money Market and Capital Market. Interlink
between Money Market and Capital Market Overview of Debt Market
in India ,Stock holding Corporation of India and Major stock
exchange: NSE, BSE, OTCEI,

Unit Financial Instruments 10

IV
Meaning , classification and types of financial instruments : Money
market instruments, capital market instruments and hybrid instruments
- Call money market, T- Bills, Commercial bills, Commercial papers
and Certificates of deposits, Government (Gilt- Edged) securities and
Industrial securities ); Characteristics of financial instruments; New
financial instruments; Evaluation of financial instruments (risk return
trade-off)

Unit Financial services 08

V
Concept of financial services, difference between financial and non-
financial services, features and importance of financial services; Role/
functions of financial services; Kinds of financial services: fund based
and fee based.

Learning Outcomes

After studying this course, student should be able to:

 Describe the financial system, Define and illustrate key financial terms
 Explain the key roles played in a modern society by the financial products, markets and
institutions and describe the relative standing of the major financial centers;
 Discuss the changes that have taken place in the way financial services are provided;

Evaluation:

The students will be evaluated on a continuous basis and broadly follow the scheme given
below:

Weight age
A Continuous Evaluation Component (Assignments / 20% (C.E.C.)
Presentations/ Quizzes / Class Participation/ etc.)
Page 2 of 3 Faculty of Liberal Studies – Bachelor of Commerce
 B Internal Assessment 30% (I.A.)
C End-Semester Examination 50% (External Assessment)

Text Books:

Sr. Author/s Name of the Book Publisher Edition &

No Year of
Publication
T-01 Pathak Bharati The Indian Financial System Pearson Education, 4th Edition
–Markets, Institutions, and New Delhi.
Services,

Reference Books:

Sr. Author/s Name of the Book Publisher Edition and

No Year of
Publication
R-01 Bhole L. M Financial Institutions Tata McGraw- 5th Edition.
and Markets, Growth Hill, New Delhi
and Innovation,
R-02 Khan M. Y Financial Services, Tata McGraw 7thEdition
Hill
R-03 Anil Agashe Financial Services, Himalaya 1st Edition
Markets and
Regulations,
R-04 H.R. Machiraju Indian Financial Vikas, 4th Edition.
System,
R-05 Clifford Gomez Financial Markets, PHI, 6th Edition
Institutions and
financial Services,

R-06 Meir Kohn Financial Institutions Tata McGraw 2nd Edition

and Markets,. Hill,
R-07 A Datta Indian Financial Excel Books (2012)
System,
R-08 P N Varshney& D Indian Financial Sulthan Chand & 11th Edition
K Mittal System, Sons.

R-09 E Gardon& K Financial Markets & HPH, 10th Edition.

Natarajan Services,

Page 3 of 3 Faculty of Liberal Studies – Bachelor of Commerce