JAIPURIA INSTITUTE OF MANAGEMENT, NOIDA

PGDM (G-SM-M); Term-IV; AY-20-21; Batch 2019-21

Course Code and title FIN 401: Financial Market & Institutions
Credits 3
Term and Year IV Term, 2020-21
Course Pre-requisite(s) Student must be well versed with the
fundamental and core finance courses
Course Requirement(s)
Course Schedule (day and time of class) Time Table Slot here
Classroom # (Location) As Scheduled by Programme Office
Course Instructor Prof. Nidhi Singh
Course Instructor Email nidhi.singh@jaipuria.ac.in
Course Instructor Phone (Office)
Student Consultation Hours
Office location Designated Cabin

1. Course Overview

A financial system plays a vital role in the economic growth of a country. It intermediates
between the flow of funds belonging to those who save a part of their income and those who
invest in productive assets. It mobilizes and usefully allocates scarce resources of a country.
The existence of an efficient financial system facilitates economic activity and growth. The
growth of financial structure is a precondition to economic growth. In other words, markets,
institutions and instruments are the prime movers of economic growth. The financial system
of a country diverts its savings towards more productive uses and so it helps to increase the
output of the economy.

The formal financial system consists of four segments. These are: financial institutions,
financial markets, financial instruments and financial services. Financial institutions can be
classified as banking and non-banking financial institutions. Financial markets are a
mechanism enabling participants to deal in financial claims. The main organized financial
markets in India are the capital market and the money market. The financial services industry
nationally and internationally is huge, growing and is of critical importance to the health of
the global economy as well as that of individual businesses, investors, consumers and
employees.

The objective of this course is to make the students aware of the Indian Financial System and
to shed light on the role of financial intermediaries in the financial market. The purpose of
this course is to develop an insight into the growing significance of financial services as a
dynamic sector. It also elaborates various conventional as well as innovative fund based and
fee based financial services provided by the financial intermediaries.

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 2. Course Learning Outcomes (CLO)

At the end of the course, the students should be able to:

CLO 1: Describe constituents of financial system and its role in economic growth
CLO 2: Explain functioning of financial market components, instruments and intermediaries
CLO 3: Explain emerging business models in financial services

Mapping of CLOs with PLOs

  PLO 1: PLO 2: PLO 3: PLO 4: PLO 5: PLO 6:

Communi Demonstrate Reflect on Evaluate Discuss the Exhibit
cate ability to business different centrality of innovative
Effectivel work in teams situations and ethical customer and
y to achieve apply relevant perspectives experience creative
desired goals conceptual in services thinking
frameworks in management
CLO1 service
L
CLO2
L
CLO3 L
NOTE: No CLO can be exactly mapped with the proposed PLOs. Therefore, no CLO
can be can be used for preparing PLO attainment AOL Report

3. Mapping of CLOs with GAs

GA 1 GA 2 GA 3 GA 4 GA 5 GA 6 GA 7 GA 8

CLO 1 X

CLO 2 X

CLO 3 X

4. Text Book

Bharati Pathak (2017). Indian Financial System, 4/E. Pearson Education India.

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5. Assessment Tasks

Assessment Item Description Weightage CLO

Quiz There shall be two quizzes, one 20 % CLO1
pre-midterm and one post mid-
term.
Group based Project Students will do an analysis on their 20 % CLO2
Assignment respective topics based on secondary
data and news. The detailed
guidelines of a project assignment
shall be shared on MOODLE

Individual Viva Each Student will be facing the 20% CLO3

viva-voce of approximately 10
minutes. The student will be
required to face all questions
related to financial markets and
institutions
End Term Description: Conceptual and 40% CLO2
Examination application based questions. It
will be hall examination after 24
sessions.

Rubrics for Assessment Components

(1) RUBRICS FOR QUIZ

Criteria Below Expectation Meet Expectation Exceed

Expectation
Demonstrate the level Answers less than Answers 30% or Answers 70% or
of understanding of 30% questions more but less than more questions
concepts learned. correctly 70% questions correctly
correctly

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(2) RUBRICS FOR GROUP BASED PROJECT AND ASSIGNMENT

Criteria Below Expectations Meets Expectations Exceeds

Expectations
Critical Thinking Lacks depth of Most of the concept Majority of the
and Application  understanding of the was critically concept are
concept. Lack in critical analyzed and the role critically analyzed
analysis of the role of of various institutions by explaining the
various institutions and and their impact on role of various
their impact on economy. They are institutions and their
economy. Lack in able to evaluate the impact on economy.
evaluating the benefits benefits and Able to evaluate the
and challenges related challenges related to benefits and
to the implementation the implementation challenges related to
of financial services. of financial services. the implementation
of financial services.
Participation and Lack of participation in Little participation in Effectively and
Discussion  a group. Lack in a group. Participates active participation
discussing the ideas in giving ideas to the in a group. Give
with groups and give groups. Complete new ideas and
new ideas. Lack in team own task and able to critically evaluate
management and not meet the deadline others ideas in a
able to meet the groups. Help others
deadline in a team and
manage team
properly. Meet all
the deadlines.

(3) RUBRICS FOR INDIVUDAL VIVA

Criteria Below Expectations Meets Expectations Exceeds

Expectations
Overall Portrays a limited/no Portrays a Portrays a robust
understanding of understanding of the satisfactory understanding of the
TOPIC topic understanding of the topic
topic
Articulation There is disjointedness There is some There is a logic in
in progression of sub- disjointedness in the progression of
topics, limited number progression of sub- sub-topics
of sub-topics are topics, although all
touched upon sub-topics are
covered

Question handling Inadequate response to Fairly responsive to Prompt and accurate

questions, most of the questions, very few response to

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 questions unanswered opportunities missed questions in
consistent manner
Body language Reflects reluctance to Reflects moderate Reflects high level
face viva level of comfort of comfort

(4) RUBRICS FOR ENDTERM

Criteria Below Expectations Meets Exceeds

Expectations Expectations

Critical Thinking Not able to evaluate Somewhat able to Effectively able to

and Application  the role and evaluate the role evaluate the role
performance of the and performance of and performance
financial institutions. the financial of the financial
Not able to interpret institutions. Able to institutions. Able
and identify the impact identify the impact to interpret and
of various external of various external identify the impact
factors on financial factors on financial of various external
institutions. Not able institutions. Able to factors on
to provide their support others’ financial
supporting views on views on economic institutions. Able
economic changes changes happening to provide own
happening in the in the country views and analyze
country the views of
other’s on
economic changes
happening in the
country

6. Session Plan

Sessio Topic/ Sub Topic Reading Pedagogy Session CLO

n Reference Learning
Outcomes

1 Introductory Session:  Class At the end of 1

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 Overview discussio session, the
n student will be
able to
familiarize
themselves with
the course
outline,
assessment and
coverage.

MODULE 1: Financial Markets

2 Indian Financial System  Text, Ch  Class At the end of 1

 Introduction 1 Page discussio session, the
 Components 3-8 n student will be
 Functions  Text, Ch able to
 Key elements of a 2 Page
conceptualize
well-functioning 32-34
the structure of
financial system
Indian Financial
 Financial System
and Economic System and its
Growth role in
economic
growth.

3 Money Market  Text, Ch  Class At the end of 2

 Functions & benefits 4 Page Discussi session, the
 Instruments 45 – 46, on student will be
48-62  Newspap able to
er
demonstrate an
discussio
n understanding
 Numeric of money
al market
questions instruments and
intermediaries

3 Money Market  Text, Ch  Class At the end of 2

4 Page Discussi session, the
 Instruments 63 - 78 on student will be
 Newspap able to
er
demonstrate an
discussio
n understanding
of money
market
instruments and

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 intermediaries

4 Money Market Text, Ch 4  Class At the end of 2

Page 79-90 discussio session, the
 Link between money n student will be
market and monetary  Newspap able to
policy in India er
 Tools for managing demonstrate an
discussio
liquidity in the n understanding
money market of the
relationship
between money
market and
monetary
policy.

5 Equity Primary Market Text, Ch 6  Class At the end of 2

Page 117- discussio session, the
 Intermediaries to an 125 n student will be
issue  Newspap able to describe
 Book building er
equity raising
process discussio
n terms, practices
 Bidding process and
 Determination of intermediaries
price involved.
 Allotment/Allocatio
n
 Anchor investor

6 Equity Primary Market Text, Ch 6  Class At the end of 2

 Auction-based book Page 127- discussio session, the
building 137, 145- n student will be
 Reverse book 150  Newspap able to
building er
understand
 Green shoe option discussio
n other primary
 IPO entry norms
market terms,
 Allotment in IPO
and FPO entry norms and
 Private placement, other methods
preferential issue, of raising equity
QIP capital.

7 Equity Secondary Text, Ch 8  Class At the end of 2

Market Page 193- discussio session, the
 Functions 197, 201- n student will be
 Organization and 203, 205-  Newspap able to describe
demutualization of 211 er
the role of
stock exchanges discussio

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  Listing of securities n secondary
 Trading rules, market
regulations and intermediaries
settlement and develop an
understanding
of trading of
stocks on stock
exchange

8 Equity Secondary  Text, Ch  Class At the end of 2

Market 8 Page discussio session, the
 Stock market index 213- n student will be
 Listing categories 215,  Newspap able to
220, er
 NSCCL understand
229- discussio
 Other stock 230, index
n
exchange: OTCEI, 233- methodology
ICSEI, RSE, INDO 237. and other types
next  Text, Ch of stock
 Depositories and 18, Page exchanges and
Custodians 720- intermediaries.
723,
725-727
9 Debt Market Text, Ch 10  Class At the end of 2
 Participants Page 316- discussio session, the
 Types of instruments 324, 329- n student will be
 Primary & 332, 342-  Newspap able to
Secondary segments 345 er
demonstrate an
 Private corporate discussio
n understanding
debt market
 PSU debt market of players and
 Govt. securities segments of
market debt market in
India.

1 Debt Market  Text, Ch  Class At the end of 2

0  Govt. securities 10 Page discussio session, the
market 353-354 n student will be
 Newspap able to
 Text, Ch er
distinguish
9 Page discussio
Derivatives Market n between
278-
 Need & types of 281, different
financial derivatives 288- financial
 Traders in 290, 294 derivative
derivatives market instruments.

11 Foreign Exchange  Handout  Class At the end of 2

Market s discussio session, the

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  Handout n student will be
s  Newspap able to explain
Real Estate Market er clearly the
discussio functioning of
n
foreign
exchange
market and
describe real
estate funds and
REITS.

MODULE 2: Financial Institutions

12 Commercial Banks Text, Ch 13  Class At the end of 2

 Banking structure Page 428- discussio session, the
 Mobilization, 433, 434- n student will be
Lending & 443, 451-  Discussi able to explain
Investment of funds 454 on on
the core
 Risk management in recent
RBI functions of a
banks
guideline commercial
s for bank and what
recognizi are the different
ng NPAs risks faced by a
bank

13 Commercial Banks Text, Ch 13  Class At the end of 2

 Basel framework Page 460- discussio session, the
470 n student will be
 Newspap able to
er
demonstrate an
discussio
n understanding
of Basel I,II and
III guidelines

14 Non-Banking Finance Text, Ch 13  Class At the end of 2

Companies Page 531- discussio session, the
 Types of NBFCs and 534, 538- n student will be
their working 542  Newspap able to classify
 Important statutory er
various NBFCs
provisions of RBI discussio
Act n and list main
provisions
applicable to
NBFCs

1 Mutual Funds Text, Ch 15  Class At the end of 2

5 Page 594- discussio session, the

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 association AIMA 619 n student will be
 Case able to classify
 Mutual fund discussio different mutual
concepts n (Text fund schemes
 Investors and page
and select a
organization of a 637)
scheme for
mutual fund investment.
 Types of schemes
 Risk and return in
mutual funds
 How to invest in a
scheme of mutual
fund

16 Insurance IRDA Text, Ch 16 Class At the end of 2

 Principles Page 639- discussion session, the
 Insurance 640, 643, student will be
industry 651-655,
able to
659-660,
 Intermediaries understand the
666-671,
 Bancassurance 679-681 working of
 General insurance
insurance company and
products different life
 Health insurance insurance
 Life insurance products offered
products by it.

1 Investment Banking  Text, Ch  Class At the end of 2

7 firms 17 Page discussio session the
704- n student will be
 Types of investment 707, able to
banks 710-711
understand the
 Investment banking structure and
services services of
 Intermediaries investment
banking.

1  Pension *Handouts,  Guest  At the end 2

7  Credit Rating PFRDA talk of session,
website the student
will be able
*Text, Ch19
Page729- to
742 understand
and classify
pension

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 schemes.
 At the end
of the
session, the
student will
be able to
express
credit rating
importance
and process.

18 Emerging Business Handouts Discussion At the end of 3

Models in Financial the session,
Services students will be
able to
 Fintech understand
 Benefits of emerging
FinTech business models
 Application in in financial
insurance, services
regulation etc.

18 Emerging Business Handouts Discussion At the end of 3

Models in Financial the session,
Services students will be
able to
understand
operations of
emerging
business models
in financial
services

19-20 Presentation Students will be 2

making
individual
presentation on
their respective
group projects.

20 Summing Up: Session

dedicated towards
learning integration &
course feedback

Time budgeting in course planning:

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 Time
Activity Description
Budgeted
Classes 2-3 hours per week for 12 weeks 30 hours
Reading Prescribed readings and making notes 30 hours
Preparation of quiz and set
Including shared and group exercises 20 hours
questions
Study and revision for end of
Self-preparations 15 hours
Trimester examination
TOTAL 105 hours

References:

1. Indian Financial System by M.Y Khan, TMH, Seventh Edition,2008.

2. Financial Services by M.Y Khan, TMH, Fifth Edition2008.
3. Financial Institutions and Markets by L.M Bhole and Jitendra Mahakud, TMH,
Fifth Edition2007.
4. Indian Financial System and Development by Vasant Desai, Himalaya Publishing
House, Fourth Revised Edition,2007.
Internet Resources: www.nseindia.com, www.bseindia.com, www.rbi.org

Instructions:

Students will be expected to maintain a daily log of their learning and make an action plan.
The continuous evaluation tools would be implemented as per schedule and collected for
evaluation.

Students are encouraged to visit videos available on Impartus, you tube on TED talks, and
readings available at websites like course era, etc.

Institute’s Policy Statements

It is the responsibility of every student to be aware of the requirements for this course, and
understand the specific details included in this document. It is emphasized that this course
requires a significant commitment outside of formal class contact.  The learning tasks in this
course may include classes (lectures or seminars), required reading, the preparation of
answers to set questions, exercises and problems, and self-study. In addition, students may be
required to complete an assignment, test or examination.

LMS-Moodle/Impartus:

LMS-Moodle/Impartus is used to host course resources for all courses. Students can
download lecture, additional reading materials, and tutorial notes to support class
participation.

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Late Submission

Assessment tasks submitted after the due date, without prior approval/arrangement, will be
not be accepted. Requests for extension of time must be made with the faculty member
concerned and based on Special Consideration guidelines.  

Plagiarism:

Plagiarism is looked at as the presentation of the expressed thought or work of another person
as though it is one's own without properly acknowledging that person.

Cases of plagiarism will be dealt with according to Plagiarism Policy of the institute. It is
advisable that students should read Student Handbook for detailed guidelines. It is also
advisable that students must not allow other students to copy their work and must take care to
safeguard against this happening. In cases of copying, normally all students involved will be
penalized equally; an exception will be if the student can demonstrate the work is their own
and they took reasonable care to safeguard against copying.

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