UNIT I Indian Financial System
Overview of Indian Financial system – Financial Institutions – Financial Instruments – Financial Markets – Financial Services – Digitalization in Financial system – pros and cons – Financial Sector reforms
UNIT II Indian Banking System
Overview of Indian Banking System, Functions of banks, modern day banking – key Acts governing the functioning of Indian banking system – Functions and Role of RBI - RBI Act 1934, Negotiable Instruments Act 1881, Banking Regulations Act, 1948 – Role of Banks in Indian Financial system – NBFCs
UNIT III Equity, Bond and Money Market
Equity market – primary and secondary market – SEBI rules for IPO and listing. Bond market –types. Money market securities – globalization of money markets - background of money market - risk and valuation.
UNIT IV Foreign Exchange Market
Foreign Exchange Markets – Spot Prices and Forward Prices – Factors influencing Exchange rates – The effects of Exchange rates in Foreign Trade – Tools for hedging against Exchange rate variations – Forward, Futures and Currency options – FEMA – Exchange Rate Theories
UNIT V Derivatives Market
Derivatives – Definition – Types – Forward – Futures – Options – Swaps – Differences between Cash and Future Markets – Types of Traders – OTC and Exchange Traded Securities – Types of Settlement – Uses and Advantages of Derivatives – Risks in Derivatives – Derivatives market in India.