Professional Documents
Culture Documents
Credits 2
Faculty Name (s) Prof. Ameet Kumar Banerjee & Prof. Asit Mohanty.
Programme MBA-BM (2021-23)
Academic Year & Term 2021-2022, Term-I
COURSE OUTLINE
1. Introduction
Financial Institutions and Markets (FIM) course is the foundation for the understanding of the
basic financial structure of the economy, financial market functioning, the process of
intermediation and the varied institutional arrangements for the successful functioning of the
financial system. The course will give an overview of different components of financial markets,
which will be an input to understand other finance related courses that will be offered going
forward.
2. Course Objective
Be able to the how financial markets and its intermediaries integrate to contribute to the
economic development.
Be able know the financial intermediation process.
Be able to understand why interest rate is an input to decision-making process for Manager.
Be able to analyze the functioning of various segments of the financial markets, institutions
and instruments available.
3. Pedagogy
The course will be delivered through lectures as per the session wise schedule given below.
Students are encouraged to read financial newspapers (Mint, Business Standard, Business line,
Economic Times, The Financial Express etc.) and bring out points for discussion to the class to
see the linkages between class lectures and what is happening in business world as well as
regulatory environments.
4. Readings Materials, Prescribed Text Book, Reference Book, References, and Important
Websites details.
Referred Book
Finance and Financial Markets by Keith Pilbeam-MacMillan Pub.
Other Reference Book
Financial Market And Institutions by Mishkin,Eakins, T Jayakumar & R.K.Pattanaik-
Pearson 8th ed.
Financial Institutions and Markets by Jeff Madura – Cengage Pub.
Financial Institutions & Markets by Bhole & Mahakud- Tata McGraw Hill-latest ed
References
5. Evaluation Pattern
The quizzes will be of MCQ types. The end-term paper would cover entire course syllabus, and
will test understanding of the subject.
This session will focus on discussing of how Indian financial system works, and will discuss how
different stakeholders are driving the functioning of the market. Context of the discussion will be
from a manager’s prospective who is looking for sources of capital to invest. Special emphasis
will be given on flow of financial assets and liabilities.
Session 2: Role of Markets and Implications of the Market Imperfections
This session will focus on role markets perform in allocating financial resources. Given that
markets are prone to failure, this session will cover basics of market failure and what are the
implications.
These sessions will discuss the drivers of interest rate, and how the existing regulatory
framework signals to the business managers. Besides, we will also discuss how managers need to
take interest rate as an input for their decision-making process. The session will also cover basic
financial mathematics.
This session will discuss who are the players in money market, and how does it work. Basic
understanding on Repo Market, T-Bill Market, Commercial Papers, Certificate of Deposits and
Bills market will be dealt. we will discuss how the dynamics in money markets affect the interest
rate and pricing of money market instruments.
These sessions will discuss the instruments available in bond market, and how does it work.
Besides, we will discuss the relationship between price of the bond and interest rate.
These sessions will discuss the basic instruments offered by Commercial Banks, and the
financial flows between Banks, Commercial sectors and Government Sector.
These sessions will discuss how stock market works, and how does it signal to managers.
Besides, we will discuss about the process and pricing of initial public offering (IPO), follow up
public offerings (FPO), and private placement process.
This session will discuss alternative sources of risk capital like private equity, InVIT, REIT and
how does this market work. This discussion will be at very basic level.
This session will discussion how does foreign exchange market works, and how does exchange
rate affect managerial decision making. This discussion will be at very basic level.
Session 14: Brief discussion of derivative markets and connecting the dots Across Markets
In this session, a brief discussion on derivative market will be discussed along with an attempt
will be made to see the linkages across various markets to develop a holistic understanding of the
subject.
7. Academic Integrity
You must demonstrate high order of academic integrity being attentive in the class and regularly
read the prescribed reading material. In case of group assignment, all members of the group
should contribute to the preparation of the report and you are expected to write the report in your
own style and language. Your basic purpose should be to learn, without resorting to any unfair
means for getting a higher score/grade.
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