Financial Institutions and Markets

By Prof. Jitendra Mahakud | IIT Kharagpur

Learners enrolled: 4867

This course will provide an understanding of the functions, and operations of the financial markets and institutions operating in India. It explains the role of financial system on economic development. Various conceptual issues related to risk and return, the role of regulatory bodies, mechanism of commercial banking, operations of insurance companies and mutual funds are discussed elaborately. It also describes the importance of small savings, provident funds, pension funds and credit rating agencies. The course provides a comprehensive overview and systematic evaluation of the mainstream markets of various financial instruments such as call money, bond, stock, derivatives and exchange rate.

INTENDED AUDIENCE :Economics, Commerce and MBA Finance

PREREQUISITES : None

INDUSTRY SUPPORT : Financial Consulting Companies, Regulatory Bodies like RBI, SEBI, IRDA, PFRDA

Summary

Course Status :	Completed
Course Type :	Elective
Language for course content :	English
Duration :	12 weeks
Category :	Management Studies
Credit Points :	3
Level :	Undergraduate/Postgraduate
Start Date :	27 Jan 2020
End Date :	17 Apr 2020
Enrollment Ends :	03 Feb 2020
Exam Date :	25 Apr 2020 IST

Note: This exam date is subject to change based on seat availability. You can check final exam date on your hall ticket.

Page Visits

Course layout

Week 1  : Introduction to Financial System and Economic Development
Indicators of Financial Development
Week 2  :  Concepts Related to Financial Markets and Institutions
  ·          Concept of Risk
  ·          Concept and types of return and yield
  ·          Asset Pricing Models
  ·          Valuation of Assets

Week 3  : Theories of Level and Structure of Interest Rates

Week 4  : Financial Regulations and Regulatory Institutions in India
(RBI,SEBI,IRDA,PFRDA)

Operating Procedures of Monetary Policy

Corporate Governance and SEBI
Week 5  : Commercial Banking
• Role of Banks
• Banks’ Financial Statement
•Banks’ Computation
• International Banking
• NPA
• Risk Management in Banking
Week 6  : Other Important Financial Institutions – I
(Provident Fund, Pension Fund, Insurance Companies)
Week 7  : Other Important Financial Institutions – II
(Mutual Fund, Credit Rating Agencies, Merchant Bank, Venture Capital Funds)
Week 8  : Money Markets in India
(Call Money Market, Treasury Bill, Commercial Paper, Certificate of Deposit)
Week 9  : Bond Market
• Bond Features
• Bond Price Volatility
• Government Security Market
• Corporate Bond Market
• Public Sector Undertaking Bonds
Week 10  : Classification of Stock Market and Securities
• IPO
• Stock Exchanges
• Stock Market Indices
• Market Micro-Structure in Stock Market
Week 11  : Derivatives Market
·     Types of Derivatives
· Important Concepts used in Derivatives Market
·     Pricing of Futures, Options and Swaps
Week 12  : Foreign Exchange Market

• Foreign Exchange Market Structure
• Risk Management in Foreign Exchange Market
• Exchange Rate Determination
• Foreign Capital – FDI & FII
• Central Bank Intervention in Foreign Exchange Market

Books and references

(1)Financial Institutions and Markets: Structure, Growth and Innovations by L.M. Bhole and J. Mahakud, 6th Edition, McGraw Hill Education, Chennai, India
(2) Financial Markets and Institutions by Frederic Mishkin and Stanley Eakins, 8th Edition, Pearson Education
(3) Financial Institutions & Markets by Jeff Madura, 10 edition Cengage
(4)Bond Evaluation, Selection and Management by R. Stafford Johnson, 2nd Edition, John Wiley & Sons, Inc. Hoboken, New Jersey
(5)Analysis of Investments and Management of Portfolios by Frank Reilly and Keith Brown, 10th Edition, Cengage Publication.

Instructor bio

Prof. Jitendra Mahakud

IIT Kharagpur

Jitendra Mahakud is Professor of Economics and Finance at the Department of Humanities and Social Sciences, Indian Institute of Technology Kharagpur. He is also a joint faculty at the Vinod Gupta School of Management, IIT Kharagpur, in the area of finance. He obtained his PhD from the Indian Institute of Technology, Mumbai. He has published more than 50 papers in leading national and international journals. He has co-authored a book titled Financial Institutions and Markets: Structure, Growth and Innovations published by McGraw Hill Education. He has edited two books one on Advances in Research in Business and Finance (Corporate Finance) and the other on Advances in Research in Business and Finance (Investment Management). His areas of teaching and research include financial markets and institutions, corporate finance, investment management, financial economics, behavioural finance and commercial banking.

Course certificate

• The course is free to enroll and learn from. But if you want a certificate, you have to register and write the proctored exam conducted by us in person at any of the designated exam centres.

• The exam is optional for a fee of Rs 1000/- (Rupees one thousand only).

• Date and Time of Exams: 25th April 2020, Morning session 9am to 12 noon; Afternoon Session 2pm to 5pm.

• Registration url: Announcements will be made when the registration form is open for registrations.

• The online registration form has to be filled and the certification exam fee needs to be paid. More details will be made available when the exam registration form is published. If there are any changes, it will be mentioned then.

• Please check the form for more details on the cities where the exams will be held, the conditions you agree to when you fill the form etc.

CRITERIA TO GET A CERTIFICATE:

• Average assignment score = 25% of average of best 8 assignments out of the total 12 assignments given in the course.

• Exam score = 75% of the proctored certification exam score out of 100

• Final score = Average assignment score + Exam score

YOU WILL BE ELIGIBLE FOR A CERTIFICATE ONLY IF AVERAGE ASSIGNMENT SCORE >=10/25 AND EXAM SCORE >= 30/75.

• If one of the 2 criteria is not met, you will not get the certificate even if the Final score >= 40/100.

• Certificate will have your name, photograph and the score in the final exam with the breakup.It will have the logos of NPTEL and IIT Kharagpur. It will be e-verifiable at nptel.ac.in/noc.

• Only the e-certificate will be made available. Hard copies will not be dispatched.