The ICFAI University DehradunFaculty of Law

B.B.A. LL.B. (Hons.) IIIrd YearCourse Title: Financial Management (Code: MG312)

Course HandoutSemester II-2015

Course No. Course Title L P UMG - 312 Money Banking & Financial System 3 0 3

Instructor-in-charge:Tanushree Gupta, Faculty of Law

Scope and objective of the course:

The scope of the subject is to familiarize the student the subject of money, monetary system, commercial banking activities and finance with reference to the Indian financial system. The course would give an overview of the Indian financial system with focus on the financial markets, financial institutions and the financial instruments.

Text Books “Money and Banking”, ICFAI Study Material, Indian Financial System by M Y KhanReference Books Indian Financial System by Tata McGraw Hill

Lecture wise planLectures

Nos.Chapter Title Topics to be covered Ref.

(Study Material)

1-3 Monetary Policy Meaning and definitions of monetary policy, Objectives and instruments of monetary policy, Factors affecting monetary policyMonetary policy of India & making process

Notes

4-8 Financial Intermediation Financial intermediation, financial intermediation in Indian context, credit market, concept of financial disintermediation

Ch. III

9-13 Development of financial institution What is DFI, functions of DFI, operations of DFI, challenges of DFI

Notes

14-20 Primary Market Organizations: Intermediaries

Merchant Bankers/ Lead Managers; Underwriters; Bankers to an Issue; Brokers to an Issue; Registrars to an Issue and Share Transfer Agents; Debenture Trustees; Portfolio Managers

Ch. VI

21-24 Secondary Market Organizations Stock Broking; Custodial Services; Depository System; Securities Lending Scheme

Ch. VIII

25-28 Derivative market Meaning, evolution, functions, types of derivatives,

Ch. IX

developments of derivative market, future, options and swaps

29-30 Money Markets Reserve Bank of India; Money market organizations

Ch. X

31-36 Banks and Banking System Commercial banks; Prudential norms; Exposure norms; Banking risks, Assets- Liabilities management practices; Credit Risk Management; Country Risk Management

Ch. XI & XII

37 NBFCs Acceptance of public deposits; Asset- Liability Management System

Ch. XIII

38-39 Mutual Funds and corporate debt market Regulatory mechanism: SEBI Mutual Fund regulations; Mutual Funds schemes/ products, meaning, functions and operations of corporate debt market

Ch. XIV

40 Insurance Organizations IRDA and IRDA Regulations. Ch. XV

41-42 Capital Market Instruments Equity Shares; Preference Shares; Debentures; Bonds; Notes; Innovative Debt Instruments/ Securities; Derivatives

Ch. XVI

43-44 Foreign Capital and governments securities Foreign collaboration/ FDI; External Commercial Borrowings (ECBs); Indian Depository Receipts (IDRs), FII; Offshore Funds; Overseas Venture Capital, what is government securities

Ch. XVII