You are on page 1of 5


Alwar (Rajasthan) FIN 511- Indian Financial System COURSE HANDOUT Semester: First Semester Session: 2012-13 Lecture / Credit: 3 0 0 3 Course No.: FIN 511 Course Title: Indian Financial System Course-in-Charge: Prof. Vivek Saxena Course Description: The goal of the course is to familiarize students with the Indian Financial System which consists of financial markets, financial intermediation and financial instruments or financial products. This course will give a brief introduction to the entire financial infrastructure in India. The financial institutions to be covered will mainly consist of commercial banks, co-operative banks, regional rural banks (RRBs), all-India financial institutions (AIFIs), non-banking financial companies (NBFCs) and microfinance institutions. The course will give an introduction to the banking sector which forms the bedrock of the Indian financial system, and the regulatory role and functions of the Reserve Bank of India (under the provisions of the Banking Regulation Act, 1949 and the Reserve Bank of India Act, 1934). The financial markets in India to be covered in brief will include the money market, the Government securities market, the foreign exchange market, the capital Market and the credit market, the major players as well as the regulatory bodies.

Learning Outcomes: Upon completing this course the students will be able     To understand the fundamentals of financial markets. To investigate impact factors of Money Market, Capital Market & Foreign Exchange Market To understand the Need and Working of Financial Intermediaries To understand the importance and various functions of Market Regulators

Indian Financial System-FIN 511

Page 1

Pathak 10 Commercial Banks Chapter 8 L M Bhole 11 Co-operative Banks Indian Financial System-FIN 511 Page 2 . Bonus Issues.1. Lecture Plan: Session Topics 1-2 Introduction to the Course.1. Chapter-6. and understanding the Monetary Policy Mechanism) Chapter 6 L M Bhole 8 The Securities and Exchange Board of India (Introduction to the Capital Market Regulator and discussion on its Powers. Bharti V. Scope & Functions) Chapter 7 L M Bhole 9 The Primary Market Book building. Pedagogy and The Nature and Role of Financial System (Discussion on Need and Importance of an Efficient and Organized Financial System) Chapter. Green Shoe Option. L M Bhole 3 The Indian Financial System on the Eve of Planning and An overview of the Indian Financial System in the Post-1950 Period (Understanding the Developments and Changes in the structure taken place before and after the Planning Period) Chapter 3 & 4 L M Bhole 4 NPA and Securitization in India Chapter 4 L M Bhole (Pg. Private placements etc. Right issues. 97-135) 5 Financial Sector Reforms (Discussion on Need and Impact of Major Reforms Chapter 5 L M Bhole To be presented by the students and further discussion in the class 6-7 The Reserve Bank of India (Introduction to RBI and Discussion on Role and Functions of Central bank.

L M Bhole 20 Commercial Bills Market Chapter – 18. Online IPO. Settlement. Right issues. T-Bills. L M Bhole 21 Markets for Commercial Papers & Certificates of Deposits Chapter – 19. Share Splits and Buybacks and their worth Margin Trading. L M Bhole 24-25 Industrial Securities Market Types of shares and their face value. Circuit Breakers etc. Chapter – 23. L M Bhole 22 The Discount Market and Market for Financial Guarantees Chapter-20. Bonus issues. concepts of free-float and market capitalization. Green Shoe Option. ASBA. and Pension Funds Chapter 10 L M Bhole 13 Insurance Companies Chapter 11 L M Bhole 14-15 Unit Trust of India and Mutual Funds & Computation of NAV Chapter 12 L M Bhole 16 Non-Banking Financial Intermediaries & Micro – Finance Institutions A Case study of SKS Ltd. The Primary Market. L M Bhole Indian Financial System-FIN 511 Page 3 . Book Building.Chapter 9 L M Bhole Project 1 Allocation 12 Small Saving. Various indices. Gilt-edged Securities market Chapter-16-17.21 L M Bhole To be presented by the students 23 An Introduction to Risk-Return Concepts Chapter-2. Provident Funds. Chapter 13 L M Bhole 17 Non-Bank Statutory Financial Organizations Chapter 15 L M Bhole 18-19 Call Money Market.

Evaluation Scheme There would be Surprise Class Tests. Make up Policy Students who miss an evaluation component will not be given any make-up test. Presentation/VIVA. Brokerage Houses and latest trends in Indian Financial Markets 30 Review and Concluding Session 2. Role of Credit Rating Agencies. and Other Financial Derivatives Chapter 24 L M Bhole 27 Foreign Exchange Market Chapter 25 L M Bhole 28-29 Functioning of Investment Banks.8 Bharti V. Indian Financial System-FIN 511 Page 4 . details of which are as under. Options. Weightage 20% 10% 15% 10% 15% 30% Time 10 Minutes each Continuous evaluation 1 hour Approximately 1 week for each project 2 hours Comment Surprise evaluation which is not announced in prior Class Participation Close Book Written report to be submitted followed by the group presentation/VIVA Close Book 3. Pathak Project 2 Allocation 26 Markets for Futures. Projects & Comprehensive Examination at the end of the Semester. (TBA = to be announced) Evaluation Instrument Surprise Class Tests (2-4) Class Participation Mid Term Test Project -1 Project -2 Comprehensive Exam. IPO Grading etc. Depositories and Custodians.. Mid Term Examination.Chapter-6.

net Faculty can be reached at: vivek. (Macmilan India Ltd) “Capital Markets” by www. A. 5th Edition Tata McGraw Hill Additional Reading “The Indian Financial System – Markets. “Indian Financial System”by Varshney & Mittal.amfiindia.sidbi.rbi.4. The students who obtain F Grade shall repeat the course in the next offering of the course in the coming semesters. Web resources: www. B. (Tata McGraw Hill). (Sultan Chand & Sons) 6.otcei.sebi. Mid-semester grading will be announced on completion of about 60% of the evaluation components. Required Materials Text Book Financial Institutions and Markets by L M Bhole & Jitendra Mahakud. www.nabard. D and F (= Fail). The grading is relative and normally it is centered on the average in a class of considerably large size say 50.ncdex. Pathak. Grading Policy The Marks obtained in all the components of Evaluation shall be totaled and the final marks shall be converted in the letter grades. Third Edition (Pearson Education) “Indian Financial System” by M Y Khan. www. Sixth Edition (The McGraw-Hill Companies) “Capital Market: The Indian Financial Scene” by N Ph-01494-302446 Indian Financial System-FIN 511 Page 5 .in www. Institutions and Services” by Bharati V. else it is absolute www. Second www. S Gurusamy.