Description

Equity and Debt Market

SYBMS Semester III

Syllabus

Unit – 1 : Introduction to Financial Market (15 Lec.)
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.

Unit – 2 : Dynamics of Equity Market (15 Lec.)
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

Unit – 3 : Players in Debt Markets (15 Lec.)
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

Unit – 4 : Valuation of Equity & Bonds (15 Lec.)
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