PROGRAM Bachelors Of Business Administration (Hons)

SEMESTER IV
COURSE TITLE Indian Financial System
COURSE CODE 04BB0404
COURSE CREDITS 04
COURSE DURATION 48 Hrs (48 sessions of 60 minutes each)

COURSE OUTCOMES:
 To understand the fundamentals of financial markets.
 To examine impact factors of Money Market, Capital Market & Foreign Exchange Market
 To appreciate the Need and Working of Financial Intermediaries.
 To recognize the importance and various functions of Market Regulation

Course Contents:

Unit Unit / Sub Unit Sessions

No
I Introduction to Indian Financial System 10
Structure of Financial System, Instruments of Financial System,
organised and unorganised Financial System; Components: Financial
Assets, Financial Intermediaries, Financial Markets (money and capital
markets in India) Relevance of various interest/return rates, Regulatory
framework,

II Role of Financial Institutions in Indian Financial System 10

Financial Institutions and its meaning, Functions and Role of Financial
Institutions; Money market institutions: Meaning, Role of the Central
Bank(RBI) in money markets; Commercial banks: Meaning and
Functions; Indigenous Financial Agencies: Bankers, Money lenders,
Discount houses, Accepting houses(only meaning and features);
Capital Market institutions: (Meaning and functions) Merchant Banks,
Investment companies, Management Investment companies,
Development banks, Mutual Funds; Special Financial Institutions:
Factors for their growth (need) ; Objectives and functions of: (1) IDBI
(2) IFCI (3) SFCs (4) ICICI (5) EXIM Bank of India; Non-Banking Finance
Companies: Meaning, Role, Types of NBFC services; Functions SEBI.

III Financial Instruments 10

Financial Instruments Meaning, importance and classification of
Financial instruments; Short-term, Medium-term and Long Term
Instruments; Primary and Secondary Securities; Innovative Instruments

IV Functions of Financial Markets in India 08

Financial Market in India: Capital Market, Money Market: meaning,
function, types.

V Meaning and Importance of Financial services in India 10

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 Meaning, importance and types of Financial Services;
1.Factoring: Meaning, Types, costs and benefits of factoring
2. Leasing: Meaning, Definition, advantages to lessor and lessee, types
of leases (operating, finance, leveraged, sales and lease-back, leveraged
and cross-border.)
3. Underwriting: Meaning and benefits
4. Credit Rating Agencies: Meaning and role of such agencies. A brief
idea about: CRISIL, CARE ICRA. 5. Others: A brief idea about: NSDL, STCI.

Evaluation:
The students will be evaluated on a continuous basis and broadly follow the scheme given below:

Component Weight age

A Continuous Evaluation Component (Assignments / 20% (C.S.E.)
Presentations/ Quizzes / Class Participation/ etc.)
B Internal Assessment 30% (I.A.)
C End-Semester Examination 50% (External Assessment)

SUGGESTED READINGS:
Text Books:

Sr. No Author/s Name of the Book Publisher Edition & Year of

Publication
T-01 Khan M. Y Indian Financial System Tata McGraw Hill 7th edition
2014
T-02 Vasant Desai The Indian financial system Himalaya 5th edition 2017
and Development Publishing House
T-03 Pathak B. V. Indian Financial System Pearson 4th edition
2014

Reference Books:

Sr. No Author/s Name of the Book Publisher Edition & Year of

Publication
R-01 Bhole L. M. & Financial Institutions and Tata-McGraw Hill 8th edition ,2012
Mahakud J Markets: Structure, Growth &
Innovations
R-02 Khan M. Y Financial Markets and Tata McGraw Hill 5th edition, 2010
Institutions
R-03 Khan M. Y Financial Services, Tata-McGraw Hill 6th edition, 2011
R-04 C.Sudarsana Financial Management- Himalaya 1st edition, 2010
Reddy Principles and Practice, Publishing House

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