NEW SYLLABUS OF SYBMS SEM IV – EQUITY & DEBT MARKET
Learning Objectives:
This paper will enable the students to understand the evolution of various aspects of financial markets which in turn will help them in framing the financial policies, development of financial instruments and processes and evolving the strategies during crisis. The teaching will be done mainly through materials available on internet and published research papers.
| Unit no. |
Name of the Topic |
No. of lectures |
| Unit
1 |
Introduction to Financial Market
1) Equity market –
meaning & definitions of equity share
Growth of Corporate sector
Simultaneous growth of equity shareholders;
Divorce between ownership and management in companies
Development of Equity culture in India
Current position.
2) Debt market –
Evolution of Debt markets in India;
Money market
Debt markets in India
Regulatory framework in the Indian Debt market. |
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| Unit 2 |
Dynamics of Equity Market
Primary:
1)IPO - methods followed (simple numerical)
2) Book building
3)Role of merchant bankers in fixing the price
4)Red herring prospectus - unique features
5)Numerical on sweat equity, ESOP & Rights issue of shares
Secondary:
1)Definition & functions of stock exchanges
2)Evolution & growth of stock exchanges
3)Stock exchanges in India
4)NSE, BSE OTCEI & overseas stock exchanges
5)Recent developments in stock exchanges
6)Stock market Indices
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| Unit 3 |
Players in debt markets:
1)Govt. securities
2)Public sector bonds & corporate bonds
3)open market operations
4)Security trading corp. of India
5)Primary dealers in Govt. securities
Bonds:
1)Features of bonds
2)Types of bonds |
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| Unit 4 |
Valuation of Equity & Bonds
Valuation of equity:
-Balance sheet valuation
-Dividend discount model (zero growth, constant growth & multiple growth)
Price earning model
Valuation of bonds
-Determinants of the value of bonds
-Yield to Maturity -Interest rate risk
-Determinants of Interest Rate Risk
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Reference Books:
- Allen, Larry (1750-2000). The Global Financial System.
- Ian H. Giddy (1994). Global Financial Markets. Houghton Mifflin.
- Saunders, Anthony & Cornett, Marica Millon. Financial markets & institutions: A modern perspective: TMIT
- LM Bhole. Financial institutions & markets: Structure, growth & innovations. TMH (5th ed.)
- Chandra, P. (2011).Corporate Valuation and Value Creation, (1st ed). TMH
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