Indian Financial

System
BBA 335
Faculty: Ms. Deeksha Garg
School of Business & Management
Quote for
the day The mind is everything,
What you think, you
become
Guidelines for Online classes
• Attendance will be taken at the start of the class
• Attend online classes in appropriate attire/ proper dress code
• Will start the class with a quote to bring a lot of positive energy
• Stay focused and attentive
• Ask doubts by posting your comments in the chat box
• Doubts will be addressed at the end of the session
• Sessions need to be attended by keeping the mic in mute mode and video need to be turned on
• Take active participation in the online class activities during the session
• In some parts of the session you will be asked to use Mentimeter and whiteboard to share your
ideas for which you will have to follow the instructions on the use as mentioned in the
projected slide
• Please avoid eating snacks during the lecture session
Financial System

Component
Need Functions
s
Expectations from the course

DISCUSSION MATCH WITH COURSE

OUTCOMES
Brief Introduction

• Faculty

• Students
Possible Perspectives

• CFO
• Entrepreneur
• Banking
• Academics
• Stock Market
• Advisory
Why IFS course?

• Perspective from each of desired position in the future.

• To understand the structure, organisation and working of the financial system in India
• To demonstrate the role of regulatory bodies in Indian financial system
• To explain the impact of money market and capital market operations
• To compare the functions of the financial institutions and financial services
• To determine the effect of emerging trends in IFS
• To measure relevance of International Financial markets.
Motivation to study
Finance?

Mathematics+ $$$ =
Finance
Pedagogy

• interactive lecture
• discussions and presentations
• HBR case and article analysis
• Guest sessions by experts and
• a field visit in the form of experiential learning
Unit I: Introduction

• Meaning – Structure - Functions

• Components of financial system
• Financial system and economic development
• Reforms in Financial Sector in India
Unit II: Capital Market

Meaning – Classification - Functions

Types - Primary market - Secondary market

functioning of various stock exchanges - NSE, BSE, OTCEI

Financial instruments in capital market - Long term loans market - Derivatives

Market - Government Securities market
Capital market scams – SEBI - Reforms in capital markets
Unit III: Money Market

• Meaning – Significance – Structure

• Features of money market
• Money market instruments - Reforms in money market
• Monetary policy - Credit Policy
Unit IV: Regulators of financial system

• Banking institutions - Scheduled commercial banks and scheduled

cooperative banks
• Non Banking Institutions – Regional Rural Banks - NBFCs and Development
Finance institutions - Insurance and Housing Finance Companies – IRDA.
• RBI Functions - Banking regulation, capital reserve, corporate governance,
financial reporting and disclosures, Capital adequacy-Banking ombudsman
scheme - Basel norms
Unit V:Banking compliance

• Anti-money laundering: Prevention of money laundering act (PMLA) -

Customer due diligence
• Know your customer norms - International sanctioning-Financial Intelligence
unit - fraud detection and management in banks –
• International banking scenario-Documentary letter of credit -Correspondent
banking and NRI accounts - bad banks
Unit VI: Financial instruments and Financial Services

• Financial Instruments: Shares - Mutual Funds – Debentures - Bonds - Money

market instruments (Self learning) - Derivatives - Hedging instruments and
others.

• Financial services: Fund based services – Leasing – Hire Purchase –

Consumer Credit – Bill Discounting – Factoring and Insurance.

• Fee based services – Issue Management, Merchant Banking, Credit rating,

Debt Restructuring and Stock Broking.
Unit VII: International Financial Markets

• Forex market rate determination Nature

• Organization and Participants- Offshore Financing Instruments

• Foreign Exchange market – Foreign Direct Investment and Foreign

Institutional Investment
Suggested Readings
• Core Text:
• 1. Pathak, B. V (2018). Indian Financial System. New Delhi: Pearson Education
• Newspaper articles, Websites like NSE, RBI, IRDA etc

• Recommended references:
• 1. Desai, V. (2019). The Indian Financial System and Development. Mumbai: Himalaya Publishers.
• 2. Gordon, N. (2014). Indian Financial System. Mumbai: Himalaya publishers.
• 3. Khan, M.Y. (2019). Indian Financial System. New Delhi: McGraw-Hill.
• 4. Sharma, G. (2014). Indian Financial System. Ludhiana: Kalyani publishers.
• 5. Singh, P. (2018). Dynamics of Indian Financial System: Markets, Institutions and Services, ANE
Books.
Keep Learning

Thank You!