FM P1- INDIAN FINANCIAL SYSTEM

Course Outcome: Students of this course will be able to:
1. To Describe the Role of Financial Sector in the economy.
2. To recognize availability of various financial markets
3. To analyze the Trading Mechanism in Stock Exchanges.
4. To define different financial services.

Syllabus:

Unit1: Introduction to Indian Financial System: -Development of Financial
System in India, Structure of Indian Financial System, Role of Financial
Sector in the economy, Institutional framework of Indian Financial
System-Regulatory, Intermediaries, Non-Intermediaries Institutions,
Reserve Bank of India (RBI), Securities Exchange Board of India (SEBI)
and Insurance Regulatory and Development Authority (IRDA)-
their Objectives and Functions

Unit 2: Financial Markets:
a) Capital Market: concept, types of markets-primary and secondary,
Instruments in Capital Market-Shares, stocks, Debentures, bonds
b) Money Market: concept, Instruments in Money market,
Recent Developments, Composition of Money market
c) Commodities and Derivatives Market: concept, Transactions-Swaps,
Options and Futures
d) Foreign Exchange Market: concept and characteristics

Unit 3: 

Stock Exchanges:
a) Stock Exchanges in India: National Stock Exchange (NSE), Bombay
Stock Exchange (BSE), Over the Counter Exchange of India (OTCE)and
other exchanges, SENSEX NIFTY
b) Trading Mechanism in Stock Exchanges: Demat, National Exchange
of Automated Trading (NEAT), BSE Online Trading (BOLT), Screen
based trading.
c) Depositories: Role of depositories, National Securities Depository
Limited (NSDL) and Central Depository Services Limited (CDSL),
Eligibility and functions of Depository Participants (DPs).

Unit 4:

Financial Services:
a) Venture Capital, Merchant Banking, Hire Purchase and Leasing and
Credit Rating.
b) Insurance: concept and importance, types of insurance- Life Insurance
and General Insurance, Privatization and Globalization of Insurance in
India.
C)NBFCs: Classification of NBFCs, Prudential Norms for NBFCs, Role
of NBFCs in asset financing, Asset Reconstruction Companies,
Implications of SARFAESI Act.

Skill Level: Beginner