Financial Institutions and Markets- II

Paper Code: 
25ECO 423 B
Credits: 
4
Contact Hours: 
60.00
Max. Marks: 
100.00
Objective: 
  1. To develop an understanding of various issues related to money market in India.
  2. To acquaint the students with the various aspects of Capital market in India.
  3. To describe the theoretical aspects of portfolio analysis.

 

Course Outcomes: 

Course Outcomes (COs):

  1.  

Course

Learning outcome (at course level)

Learning and teaching strategies

Assessment Strategies 

Course Code

Course Title

25ECO 423(B)

Financial Institutions and Markets-II

(Theory)

Students will

CO139: examine the working and role of money market in India

CO140: evaluate the structure and working of capital markets in India.

CO141: analyse the role and problems of Indian capital market.

CO142: analyse portfolio management and related aspects.

CO143: evaluate various financial services in India along with related issues.

CO144: contribute effectively in course-specific interaction.

Approach in teaching: Interactive Lectures, Discussion, Case studies.

 

Learning activities for the students:

Presentations, Assignments and Group discussions.

Class activity, Assignments, Quiz and Semester end examinations.

 

12.00
Unit I: 
Financial markets in India – Money market
  • Financial markets in India – structure
  •  Indian money market – unorganized & organized sector : Composition
  • Call money market, Treasury Bills markets, Commercial Bills market  (meaning, types, merits & defects)
  •  New money market instruments – meaning of Certificate of Deposit, Commercial Papers, interbank participation instruments, repo instruments.

 

12.00
Unit II: 
Reform measures & structure of Indian capital market

·       Characteristics of Indian money market

·       Reform measures to strengthen the Indian money market

·        Structure of Capital Market in India – Gilt Edged Market & Corporate Securities Market

·       New Issue Market, Secondary market – functions

 A brief introduction to important Stock Exchanges in India

12.00
Unit III: 
Role & Problems of Capital Market in India
  • Role of capital market in India’s industrial growth
  •  Factors contributing to the growth of capital market in India
  •  Problems of Indian Capital Market – the pre reform phase
  • Strengthening the Capital Market – the post reform phase

 

12.00
Unit IV: 
Portfolio Analysis

·       Meaning of Portfolio and Risk

·       Portfolio Notion and Principles

·       Portfolio Theories – Traditional Portfolio Theory and Modern Portfolio Theory

Concept of Efficient Portfolio, Market Portfolio and Managed Portfolio

12.00
Unit V: 
Other important issues
  • Financial services – features, classification
  • Merchant banking –definition, scope, problems
  •  Credit rating – meaning & functions
  •  Credit Rating Agencies in India -CRISIL, IICRA, CAREDCR, ONICRA
  • Credit Cards –meaning & types

 

 

Essential Readings: 

1.     Bhole LM (2017), Financial Institutions & Markets – structure, growth & innovations, Tata McGraw Hill publishing co. ltd. (6th edition)

2.     Gordon &Natrajan (2018), Financial Markets & Services, Himalaya Publishing House (11th edition)

Sundaram, K.P.M. (2010).Money, Banking, & International Trade. Sultan Chand & Company

References: 

Suggested Readings:

  1. Rangarajan, C. (1999). Indian Economics: Essays on Money and Finance, UBS Publishers.
  2. Mithani, D.M. (2012) Money, Banking, International Trade & Public Finance. Himalayan Publishers.

 

 

 

E-Resources:

 

Journals:

 

  • Journal of Money, Banking and Finance 

https://www.esijournals.com/jmbf

 

  • Journal of  Financial Economics

https://inomics.com/institution/journal-of-financial-economics-1389700

 

Academic Session: 
2025-26
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