School of Law and Governance LAW 456 Financial Market Regulation LyT/PI|C Version: 1.1 Pre-requisites//Exposure | Constitution-1, Company Law-1 co-requisites SEBI & Investment Laws ‘Semester Vil Programme B.A. LL.B.) &B.SeLL.B.) 1.0. Objective of the Course: ‘To analyze and impart the basic principles of capital markets in India; ‘To impart knowledge of legal frameworks relating to regulation of capital market; To impart the knowledge and skill regarding practical aspects of the capital markets; “ To train the students in facing contemporary issues development and of capital market 2.0.Teaching Learning Methodology: & Lecture Method +. Problem Method & Case Study Method 3.0.Evaluation Scheme: 4 Continuous Assessment ~ 30 Points, 4 Attendance 5 Points & Mid-Term 15Points 4 End Term 50 Points ETAILED SYLLAB' Scanned with CamScannerSchool of Law and Governance Module I: An overview of Financial System vvvvyvvvy v Financial markets- it's definition and meanin Role and functions of finaneial markets; Different constituents of financial markets, Development and growth of financial markets in India and financial reforms in India. Meaning, characteristics, significance and growth of capital market in India; Constituents of Indian Capital market; The capital market vis-d-vis Money Markel; Capital Market instruments: Preference shares, lity shares, Non-voting equity shares, Company fixed deposits, warrants, Debentures and Bonds, sweat equity. Money Market Instruments: Treasury Bills, Treasury bonds, Commercial papers, Participatory notes, Certificate of deposit, Bankers acceptances. References & Readings materials: vy vyvv v vy SEBI Manual, Taxman Publications. Dr. K.R Chandretre, Bipin S. Acharya, et.al, SEBI compendium ( A guide to listed Companies), Bharat, 4" edition, 2011, Dr. V.A Avadhani, Investment and Securities Market in India, Himalya Publishing House, eighth edition, 2008. Securities Markets and Products, Indian Institute of Banking and Finance, 2011. Elis Ferran, Principles of Corporate Finance, Oxford University Press, 2009. K Sekhar, Guide to SEBI Capital Issues, Debentures and Listing, 3” edition, Lexis Nexis Butterworths Wadhwa Nagpur, 2003. S.R Myneni, Law of Investment and Securities, Asia Law House, 2006. ‘Sumit Agarwal, Robin Joseph Baby, Amit Agarwal, Agarwal & Baby on SEBI Act, Taxman, 2011. Dr. S. Gurusamy, Capital Markets, 2" edition, Tata McGraw-Hill publication, Rajesh Chakrabarti, Sankar De, Capital Markets in India, Sage Publications, 2010. Module Il: New issue Market / Primary Market vVvvYVYYY Meaning, Significance and scope; Government policies and new issue market; Advantages and disadvantages of primary market; Functions of new issue market; Methods of floating new issues; Problems of the new issue markets; General guidelines and regulatory aspects for new issues; ‘The role of intermediaries Merchant bankers, Registrars, Underwriters and brokers, Collecting and coordinating bankers, Portfolio managers, debenture-trustees. Scanned with CamScannerReferences & Readings mate v School of Law and Governance SEBI Manual, Taxman Publications, Dr. K.R Chandretre, Bipin 8. Acharya, et.al, SEBI compendium ( A guide to listed Companies), Bharat, 4" edition, 2011. Dr. V.A Avadhani, Investment and Secu House, eighth edition, 2008. Securities Markets and Products, Indian Institute of Banking and Finance, 2011. Elis Ferran, Principles of Corporate Finance, Oxford University Press, 2009. K Sekhar, Guide to SEBI Capital Issues, Debentures and Listing, 3" edition, Lexis Nexis Butterworths Wadhwa Nagpur, 2003. S.R Myneni, Law of Investment and Securities, Asia Law House, 2006. Sumit Agarwal, Robin Joseph Baby, Amit Agarwal, Agarwal & Baby on SEBI Act, Taxman, 2011 Dr. S. Gurusamy, Capital Markets, 2" edition, Tata McGraw-Hill publication. Rajesh Chakrabarti, Sankar De, Capital Markets in India, Sage Publications, 2010. ies Market in India, Himalya Publishing Module Il: Secondary Market/Stock exchanges vvvvvyv v Meaning and significance; Functions of secondary market; Recognition and organization of stock exchanges in India; Listing of securities on the stock exchanges-advantages and disadvantages; Listing of securities- Procedure, rules and regulations; ‘Secondary Market Intermediaries- Stock brokers- their registration and functions, sub- brokers; Online Trading, BSE-BOLT System, Mobile Trading, ALGO Trading. References & Readings materials: v v vv vv ‘SEBI Manual, Taxman Publications. Dr. K.R Chandretre, Bipin S. Acharya, et.al. SEBI compen Companies), Bharat, 4" edition, 2011. Dr. V.A Avadhani, Investment and Securities Market in India, Himalya Publishing, House, eighth edition, 2008, : Securities Markets and Products, Indian Institute of Banking and Finance, 2011. Elis Ferran, Principles of Corporate Finance, Oxford University Press, 2009, K.Sekhar, Guide to SEBI Capital Issues, Debentures and Listing, 3" edition, Lexis, Nexis Butterworths Wadhwa Nagpur, 2003, $.R Myneni, Law of Investment and Securities, Asia Law House, 2006, Sumit Agarwal, Robin Joseph Baby, Amit Agarwal, Agarwal & Baby on SEBI Act, ‘Taxmann, 2011. Dr. S. Gurusamy, Capital Markets, 2™ edition, Tata McGraw-Hill publication. Rajesh Chakrabarti, Sankar De, Capital Markets in India, Sage Publications, 2010. ium (A guide to listed Scanned with CamScannerSchool of Law and Governance Module IV: Principal Regulator of Indian capital market > The Secur sand Exchange Board of India: establishment and incorporation; > Powers and functions of the Board; > Registration certificate; > Prohibition of manipulative and deceptive devices, insider trading and substantial acquisition of securities or control; Securities Appellate Tribunal- establishment, jurisdiction and authority; SEBI (Issue of capital and disclosure requirements) Regulations, 2009: 1, IPO,FPO, Net worth, Offer document, QIB, Rights issue; ‘Common condi Conditions for IPO; Bonus issue- conditions & restrictions. References & Readings materials: > SEBI Manual, Taxman Publications. > Dr. K.R Chandretre, Bipin S. Acharya, et.al. SEBI compendium ( A guide to listed Companies), Bharat, 4" edition, 2011 Dr. V.A Avadhani, Investment and Securities Market in India, Himalya Publishing House, eighth edition, 2008. Securities Markets and Products, Indian Institute of Banking and Finance, 2011. Elis Ferran, Principles of Corporate Finance, Oxford University Press, 2009. K Sekhar, Guide to SEBI Capital Issues, Debentures and Listing, 3" edition, Lexis ‘Nexis Butterworths Wadhwa Nagpur, 2003. ‘S.R Myneni, Law of Investment and Securities, Asia Law House, 2006. Sumit Agarwal, Robin Joseph Baby, Amit Agarwal, Agarwal & Baby on SEBI Act, ‘Taxmann, 2011. : Dr. S. Gurusamy, Capital Markets, 2™ edition, Tata McGraw-Hill publication. Rajesh Chakrabarti, Sankar De, Capital Markets in India, Sage Publications, 2010. v vY vvy 5 v Module V: Depository services > Overview of Depository system in India, benefits of the system; > Beneficial owner, Depository, Depository participant ; > Significance of the system > Materialization, Dematerialization and Dematerialization; > Certificate of commencement of business by depositor Scanned with CamScanner‘School of Law and Governance > Rights and obligations of depositories, participants, issuer and beneficial owners, > Overview of SEBI (Depositories and participants) Regulations, 1996. References & Readings materials: > SEBI Manual, Taxman Publications, > Dr K.R Chandretre, Bipin S. Acharya, etal. SEBI compendium (A guide to listed Companies), Bharat, 4" edition, 2011. > Dr. V.A Avadhani, Investment and Securities Market in India, Himalya Publishing House, eighth edition, 2008. > Securities Markets and Products, Indian Institute of Banking and Finance, 2011. > Elis Ferran, Principles of Corporate Finance, Oxford University Press, 2009. > K.Sekhar, Guide to SEBI Capital Issues, Debentures and Listing, 3" edition, Lexis Nexis Butterworths Wadhwa Nagpur, 2003. > S.R Myneni, Law of Investment and Securities, Asia Law House, 2006. > Sumit Agarwal, Robin Joseph Baby, Amit Agarwal, Agarwal & Baby on SEBI Act, Taxman, 2011. > Dr. S. Gurusamy, Capital Markets, 2 edition, Tata McGraw-Hill pul > Rajesh Chakrabarti, Sankar De, Capital Markets in India, Sage Publications, 2010. ‘Module VI: Credit Rating and Evaluation of Risk > Concept, scope and significance; > Benefit to investors; > Regulatory framework; > Credit rating agencies in India and their process. References & Readings materials: SEBI Manual, Taxman Publications. Dr. K.R Chandretre, Bipin S. Acharya, et.al. SEBI compendium ( A guide to listed Companies), Bharat, 4" edition, 2011. Dr. V.A Avadhani, Investment and Securities Market in India, Himalya Publishing House, eighth edition, 2008. Securities Markets and Products, Indian Institute of Banking and Finance, 2011, _ Elis Ferran, Principles of Corporate Finance, Oxford University Press, 2009. K Sekhar, Guide to SEBI Capital Issues, Debentures and Listing, 3" edition, Lexis Nexis Butterworths Wadhwa Nagpur, 2003. S.R Myneni, Law of Investment and Seeu > vvv ov v , Asia Law House, 2006. Scanned with CamScannerSchool of Law and Governance > Sumit Agarwal, Robin Joseph Baby, Amit Agarwal, Agarwal & Baby on SEDI Act, Taxman, 2011. > Dr. $. Gurusamy, Capital Markets, 2" edition, Tata McGraw-Hill publication > Rajesh Chakrabarti, Sankar De, Capital Markets in India, Sage Publications, 2010, Module VII: Other Instruments > Mutual Funds: Definitic Value(NAV); > Overview of SEBI (Mutua? Funds) Regulation, 1996; > Venture capital- meaning and definition, significance, Indian venture capital industries; > Instruments Issued Outside India- FCCBs, GDRs, ADRs, ECBs. ., Types, Importance, Risks involved, Net Asset References & Readings materials: > SEBI Manual, Taxman Publications. > Dr KR Chandretre, Bipin S. Acharya, et.al. SEBI compendium (A guide to listed Companies), Bharat, 4" edition, 2011. Dr. V.A Avadhani, Investment and Securities Market in India, Himalya Publishing House, eighth edition, 2008. Securities Markets and Products, Indian Institute of Banking and Finance, 2011. Elis Ferran, Principles of Corporate Finance, Oxford University Press, 2009. K.Sekhar, Guide to SEBI Capital Issues, Debentures and Listing, 3" edition, Lexis Nexis Butterworths Wadhwa Nagpur, 2003, S.R Myneni, Law of Investment and Securities, Asia Law House, 2006. Sumit Agarwal, Robin Joseph Baby, Amit Agarwal, Agarwal & Baby on SEBI Act, ‘Taxmann, 2011. Dr. S. Gurusamy, Capital Markets, 2™ edition, Tata McGraw-] Rajesh Chakrabarti, Sankar De, Capital Markets in Indi v vy vvy v publication. Sage Publications, 2010. v Scanned with CamScanner