Itgalpur, Rajankunte, Yelahanka, Bengaluru – 560064

(Established under the Presidency University Act, 2013 of the Karnataka Act 41 of 2013)
A-2[2020] COURSE HAND OUT
SCHOOL : MANAGEMENT
DEPT. : ACCOUNTING & FINANCE
DATE OF ISSUE:
NAME OF THE PROGRAM : MBA
P.R.C. APPROVAL REF. :
SEMESTER/YEAR : III/2021
COURSE TITLE & CODE : Financial Markets and Services & FIN232
COURSE CREDIT STRUCTURE : 3-0-0
CONTACT HOURS : 36
COURSE INSTRUCTOR INCHARGE : Dr. Sunil M Rashinkar
Instructors : Dr. Anitha S Yadav, Dr. Magesh Kumar R

PROGRAM OUTCOMES: [LIST ALL AND CIRCLE THE RELEVANT SELECTED OUTCOMES]
a) An ability to lead themselves and others to achieve organizational goals contributing
effectively to a team environment.
b) An ability to integrate functional knowledge and apply managerial skills in changing
business environment.
c) An ability to identify real life problems in different management functions and solve them
through strategic planning, critical thinking and innovation.
d) An ability to identify and evaluate business ideas and opportunities.
e) An ability to make data driven decisions and effectively communicate to different
stakeholders.
f) An ability to evaluate and integrate ethical and societal considerations when making
business decisions.
g) An ability to demonstrate commitment to continuous learning.

Course prerequisite: Students should have successfully completed Corporate Finance and Financial
Accounting course.

Course Description

Indian economy is one of the fastest growing economies in the world. Financial services sector is one
the important sectors contributing towards the GDP of the country. The recent developments in
technology which enables the financial services sector to deliver their products in a better and
secure way along with the developments in the field of regulation is a major contributor towards the
fast development in this sector. The global economic environment and rapid technological change is
affecting the industry operations for the better. This course provides students an understanding of
the sector and helps them in deciding their career path.This course provides an insight of major
financial services and the financial institutions through which the services are provided. It makes an
evaluation of the regulators, institutions, instruments and participants. The course focuses on various
financial services including Merchant banking, Investment Banking, Depositories, Mutual Funds,
Lease and Hire Purchase Financing, Portfolio Management, Credit Rating, Securitization, Venture
Capital, Private Equity, Factoring, Depository services and Insurance services.

Course Outcomes

On completion of the course students shall be able to:

a. express the functioning of an Financial System

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 b. identify the financial markets and its functioning
c. identify the financial service organizations and their service
d. identify analytical skills to address relevant issues relating to financial services industry
e.
MAPPING OF C.O. WITH P.O.
[H-HIGH, M- MODERATE, L-LOW]
C.O.N0 P.O. P.O. P.O. P.O. P.O.6
. 2 3 4 5
1 H H L M H
2 M H L M M
3 H H H H L
4 H H L L H

Syllabus:
Module 1 Financial System: 8 hours Knowledge
Flow of funds from lenders to borrowers, Components - Financial markets, financial institutions,
Financial Instruments and Financial Services, Indian Financial System

Module 2 Financial Markets 10 hours Comprehension

Money Markets
Importance & Functions, Indian money market, Money market instruments – Treasury Bills, Bills of
Exchange, Promissory Notes, Commercial Papers, Certificates of Deposit
Capital Market – Importance and Functions, Indian Capital Market – Structure, sources of supply and
demand of funds Capital market instruments – Ownership securities- creditor-ship: Equity,
Preference, Gilt-edged Securities.
Regulation of Capital market – SEBI- Objective, Functions and Powers Delegated to SEBI, FEMA 1999,
Competition Act, Indian Companies Act, 2013, Securities Contract Rules, 1957.
Primary Market – IPO, FPO Functions of New issue market- Origination, Underwriting& Distribution,
Methods of floatation of New Issues, Operators in new issue, Listing of securities.
Secondary Market – National Stock Exchange, OTC Markets, SHCIL (Stock Holding Corporation of
India Limited), Depository System

Module 3: Banking Financial Institutions 9 hours Comprehension

Commercial Banking, Sources and application of banking funds, Reserve Bank of India and its roles,
Cooperative banks, Non Banking Financial Institutions.

Module 4 Financial Services 9 hours Application

Functions, Essentials of an Ideal Financial Services Industry
Merchant & Investment Banking - Definition, Origin and merchant banking in India
Mutual Funds – Classification, schemes, organization and working of Mutual funds, SEBI Guidelines
Venture Capital – Features, Steps in venture capital financing Payment Services – Services providers,
Process of working, Distributors, Collectors and aggregators.

DELIVERY PROCEDURE (PEDAGOGY):

The delivery of the course shall be a mixture of Lectures, Tutorials, Assignments and Case Analysis.

Self-Learning Topic: Recent Trends in Indian Capital Market, Credit Rating Agencies in India, Role of
RBI in money market, Non-Performing Assets of Banks, Security Exchange Board of India report.

Participative Learning – Financial Statement Analysis of Banks

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Books:
Textbook(s) :
T 1 Clifford Gomez (CG), Financial Markets, Institutions and Financial Services, PHI Learning Private
Ltd
Reference Book(s):
R 1 Gordon, Financial Markets And Services. Himalaya Publishing House.
R 2 Gupta, Financial Services. Kalyani Publishers

Important Websites: www.finmin.nic.in ; www.rbi.org.in ; www.sebi.gov.in ;

www.irdaindia.org ; www.amfiindi.com ; www.icra.in ; www.crisil.com ; www.nseindia.com,
www.bseindia.com

COURSE SCHEDULE:
Sl. Activity Starting Date Concluding Date Total Number of Hours
No.
01 Over View of the course and pre-
requisite of the course
02 Flow of funds
03 Money Market, Capital Market
04 Commercial Banking
05 Indian Financial System
06 Mid term
07 Quiz
08 End term

LECTURE PLAN
Learning C.O. Mode
Topics to be covered Reference
Week Objectives
Module 1
Session Discussion of course handout and discussion L
1 1 of financial services taught in Corporate
Finance
Session Flow of funds from lenders to borrowers, 1 L
Chapter-1
2
CG
Session Components - Financial markets, 1 L
Chapter-2
3
CG
Session Financial institutions, 1 L Chapter-2
4 CG
Session Financial Instruments and Financial Services, 1 L Chapter-2
5 CG
Session Indian Financial System 1 L Chapter-3
6 CG
Module 2

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2 Session Money Market: 2 L
Chapter-3
7 Importance & Functions, Indian money
CG
market, Money market instruments
Session Treasury Bills, Bills of Exchange, Promissory 2 L
Chapter-3
8 Notes, Commercial Papers, Certificates of
CG
Deposit
Session Capital Market: 2 L
9-10 Importance and Functions, Indian Capital
Chapter-5
Market – Structure, sources of supply and
CG
demand of funds Capital market instruments

Session Ownership securities- creditor-ship: Equity, 2 L Chapter-6

11 Preference, Gilt-edged Securities. CG
Regulation of Capital market – SEBI-
Objective, Functions and Powers Delegated
to SEBI
Session , FEMA 1999, Competition Act, Indian 2 L Chapter-7
12 Companies Act, 2013, CG
Session Securities Contract Rules, 1957. 2 L Chapter-8
13 CG
Session Primary Market: 2 L
Chapter-8
14 IPO, - Origination, ,
CG
Session FPO Functions of New issue market 2 L Chapter-8
15 - 16 CG
Session Underwriting& Distribution 2 L Chapter-9
17 - 18 CG
Session Methods of floatation of New Issues, 2 L Chapter-
18 - 19 Operators in new issue, Listing of securities. 11
CG
Session Secondary Market: 2 L Chapter-
19 - 20 National Stock Exchange, OTC Markets, 19
Depository System. CG
Module 3
3 Session Topics: 3 L Chapter-
20 - 22 Commercial Banking, Sources and application 32
of banking funds, CG
Session Reserve Bank of India and its roles, 3 L Chapter-
23 - 24 32
CG
Session Cooperative banks, 3 L Chapter-
25 - 26 33
CG
Session Non-Banking Financial Institutions. 3 L Chapter-
27 - 29 36
CG
Module 4
4 Session Functions, Essentials of an Ideal Financial 4 L Chapter-
30 - 31 Services Industry 39
Session Merchant & Investment Banking - Definition, 4 L CG
32 Origin and merchant banking in India 40

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 Session Mutual Funds – Classification, schemes, 4 L Chapter-
33 organization and working of Mutual funds, 54
SEBI Guidelines
Session Venture Capital – Features, steps in venture 4 L CG
34-35 capital financing, Payment Services – Services 60
providers, Process of working,
Distributors, Collectors and aggregators.
Session Revision
36

Evaluation
Sl.no Assessment Contents Course Duration Marks weightage Venue,
type[Include outcome In Hours DATE
here Number &TIME
assessment
method for self-
learning
component
also]
1 Quiz Module 1 1 and 2 30 20 10% To be
&2 minutes informed
2 Case Module - 3 20 20 10% To be
assessment 3 minutes informed
3 Assignment Module 1,2,3 & 4 Semester 20 10% To be
1,2,3 & 4 informed
3 Mid Term Module 1 and2 2 hours 40 20% To be
1, 2 & 3 informed
4 End Term Module 1,2,3 & 4 3 hours 100 50% To be
Examination 1,2,3 & 4 informed
Total 200 100 %

COURSE CLEARANCE CRITERIA:

 A student shall maintain a minimum attendance of 75% to write the end term exam
 A student shall have a minimum of 20 marks ( 40%) in their continuous evaluation to be
eligible to write the End Term Exam
 A student shall secure 30 marks (30%) in their end term exam to pass the course.
 Make Up Exam Policy – Please refer to the make-up exam policy in programme regulation.

CONTACT TIMINGS IN THE CHAMBER FOR ANY DISCUSSIONS: (Here mention the fixed slots on any
of the week days for students to come and interact with you)
 Sample thought provoking questions:
QUESTION MARKS COURSE BLOOM’S LEVEL
SL NO OUTCOME
NO.
1 Banks are incurring more non-performing assets 5 2 Comprehension
(NPA). Do you think still a bank can earn profit in
spite of huge NPA?
2 Non-Banking Financial Companies are not taking 10 5 Knowledge
public deposits still they are running their
business. What are their sources of finance?
3 What are the differences between Close ended 10 5 Knowledge
fund and open ended fund?

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 4 How stock market do minimizes risk? 5 2 Comprehension

Target set for course Outcome attainment:

Sl.n C.O. Course Outcomes Target set for attainment in
o No. percentage
01 Co1 Express the functioning of an Financial System 40
02 Co2 Identify how financial service organizations and their service 30
03 Co3 Demonstrate analytical skills to address relevant issues 25
relating to financial services industry
04 Co4 Identify the financial markets and its functioning 30

Signature of the course Instructor

This course has been duly verified Approved by the D.A.C.

Signature of the Chairperson D.A.C.

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