KIIT SCHOOL OF LAW (KSL)

Kalinga Institute of Industrial Technology (KIIT)

( Deemed to be University u/s 3 of UGC Act. 1956)
Campus - 16, Bhubaneswar - 751024

Course Code: LW4411 Course Title: Capital Market Regulations

Semester: 7 t h Course Type: Elective Credits: 4
n objectives
Course description and learning

This course aims to offer the learners an opportunity to understand, realise & appreciate the various legal
as well as practical aspects involved in the capital market, its regulatory mechanism and also to provide
them with requisite skill for operating the capital market.

Unit Mission Program Program Programme CO Mapping

Outcomes Education Specific (of course)
(POs) Objectives Outcomes
(PEOs) (PSO)

1. MODULE 1 M1, M3, PO 1, PO 2, PEO 2 PSO 1, PSO 3 CO 1

M6, M8 PO 5, PO 7
2. MODULE 2 M3 PO 1, PO 2, PEO 2 PSO 1, PSO 4 CO 2
PO 5, PO 7
3. MODULE 3 M 1, M 3 PO 2, PO 4, PEO 2, PEO 3 PSO 3, PSO 4 CO 3
PO 5, PO 7
4. MODULE 4 M 3, M 7 PO 1, PO 3, PEO 2, PEO 3 PSO 2, PSO 4 CO4
PO 4, PO 6
5. MODULE 5 M1, M3, PO 1, PO 5, PEO 2 PSO 2, PSO 4 CO 5
M8 PO 7

Learning objectives:

1. To analyse & impart to the students the basic principles of the Laws on Securities and
Financial Market System.
2. To impart to the students an understanding of the relationship between the various players is a
securities market & the various laws applicable to them.
3. To enable the students in understanding the nuances of various alternate investment
mechanisms and the laws related to them in the securities market.
4. To impart the students with an understanding of the intricacies of primary market & the rules
governing thereto.
5. To impart the students with an understanding of the intricacies of secondary market & the
rules governing thereto.

On successful completion of this course, students will be able to:

Course Outcomes Assessment

 Critically analyse and understand the basic nuances & principles A1, A2, A3
CO1
of securities market
Detecting & measuring the role of various intermediaries in the A1, A2, A3
CO2
securities market
Appraising the various investment approaches of institutional A2, A3
CO3
investors in the capital market.

Analysing the working of primary market within the existing A2, A3

CO4
legal framework

Analysing the working of secondary market within the existing A2,A3

CO5
legal framework

Course outline and indicative content

MODULE 1- (14 Lectures) OVERVIEW OF FINANCIAL MARKET (CO1 L 01)

1.1 Indian Financial Market – Organizational Structure & Constituents of Financial System.
1.2 Historical Development & Growth of Financial Market in India
1.3 Constituents of Financial Market and Capital Market
1.4 Capital market vis-à-vis Money Market
1.5 Capital Market and Money Market Instruments: Preference shares, Equity shares, Non-voting
equity shares, Company fixed deposits, Debentures and Bonds, Sweat Equity, FCCBs, GDRs,
ADRs & ECBs, Currency or Money, Treasury Bills, Treasury bonds, Commercial papers,
Participatory notes, Certificate of deposit, Bankers acceptances

MODULE 2 - (15 Lectures) CAPITAL MARKET INTERMEDIARIES AND REGULATION

(CO 2 L02)

2.1 Primary Dealers, Merchant Bankers, Stock Brokers, Sub – brokers

2.2 Registrar to an Issue & Share Transfer Agent, Bankers to an Issue
2.3 Underwriters & Debenture Trustees
2.4 Depositories: Depository System, Depository Participant, Significance & Benefit, Rights &
Obligations.
2.5 Credit Rating & Credit Rating Agencies

MODULE 3 - (14 Lectures) INSTITUTIONAL INVESTORS IN CAPITAL MRKET (CO3

L03)

3.1 Qualified Institutional Investors

3.2 Mutual Funds: Meaning, Types, Importance, Risks involved, Net Asset Value
3.3 Venture Capital and Alternate Investment Fund
3.4 Private Equity
3.5 Foreign Institutional Investors

MODULE 4 (15 Lectures) PRIMARY MARKET (CO4 L04)

4.1 Conceptual Understanding of primary market

4.2 Functions of Primary Market
4.3 Regulatory Framework for Public Offers and Private Placement
4.4 Procedure of IPO and Private Placement
4.5 Mechanism of Price Discovery

MODULE 5 (14 Lectures) SECONDARY MARKET (CO5 L05)

5.1 Conceptual Understanding of secondary market

5.2 Functions of Secondary Market
5.3 Role & Powers of SEBI as Regulator
5.3 Stock Exchanges in India
5.4 Listing of Securities
5.5 Insider Trading Regulations

Assessment methods
Task Task type Task mode Weightage (%)
A1: Mid exam Individual Written 20
A2 Topic
Presentation/Case
Individual /Groups PPT Presentation/Report 30
Analysis/
Assignment
A3: End exam Individual Written (short/long) 50

KNOWLEDGE L6. CR
L1.
DIMENSION / L2. L4. L5. EA TE
REME L3.
UNDERSTAND ANALYZE EVAL
COGNITIVE MBER APPL
UATE
DIMENSION Y

Factual
Knowledge
Conceptual CO1 (A1, A2, CO3 (A1,
Knowledge A3) A2, A3)

CO4 (A2,
A3)
Procedural CO 2(A1,A2, CO 4( A2, A3) CO3 (A1,
Knowledge A3) A2, A3)

CO5 (A2, CO 5 (A2,

A3) A3)
Meta Cognitive
Knowledge

Mapping COs-Blooms levels- Assessment Tools:

A1: Mid exam for 20 Marks.
A2: Topic presentation & Article writing (5000 words)- 30 Marks A3: End sem exam - 50
marks
A3: End-term examination is 50 questions for 2 hours duration): The syllabus is
from all
Section 1: SAT
Section 2: Essay Questions/application based/ Analytical
 Learning and teaching activities
Lecturing, Power Point Presentations, Class room teaching, Class room
Presentations, Assignments, research paper writing etc.

Teaching and learning resources

TEXTBOOK:
1. Taxxman’s Capital Markets & Securities Laws
2. Capital Market and Financial System in India by Asheesh Pandey
3. M.Y. Khan: Indian Financial Systems; Tata McGraw Hill, 4/12, Asaf Ali
Road, New Delhi – 110 002.

REFERENCES

1. Guide to Financial Markets (6th edition) The Economist by Marc Levinson

2. E. Gordon, Capital Market in India; Himalaya Publishing House, Ramdoot, K.
Natarajan Dr. Bhalerao Marg, Girgaon, Mumbai
3. Sanjeev Aggarwal, Guide to Indian Capital Market; Bharat Law House, 22,
Tarun Enclave, Pitampura, New Delhi
4. V.L. Iyer, SEBI Practice Manual; Taxman Allied Service (P) Ltd., 59/32, New
Rohtak Road, New Delhi
5. M.Y. Khan, Indian Financial Systems; Tata McGraw Hill, 4/12, Asaf Ali
Road, New Delhi

JOURNAL ARTICLES:

1. Bose, S. (2005). Securities market regulations: lessons from US and Indian

experience. The ICRA Bulletin, Money & Finance, 2(20-21).
2. Kashyap, A. K. (Ed.). (2016). Financial Market Regulations and Legal
Challenges in South Asia. IGI Global.
3. Ocampo, J. A., Spiegel, S., & Stiglitz, J. E. (2008). Capital market
liberalization and development. Capital Market Liberalization and
Development, 3(78), 1-47.
4. Daouk, H., Lee, C. M., & Ng, D. (2006). Capital market governance: How do
security laws affect market performance?. Journal of Corporate Finance,
12(3), 560- 593.
BOOKS FOR ADVANCED READING: (TEXTS BOOKS, ARTICLES AND
COMMENTARIES)

1. S. Suryanarayanan, SEBI – Law, Practice & Procedure; Commercial Law

Publishers (India) V. Varadarajan Pvt. Ltd., 151, Rajindra Market, Opp. Tis Hazari
Court, Delhi.
2. L.M. Bhole, Financial Institutions and Markets: Structure, Growth and Innovation,
Tata McGraw Hill Publishing Company Limited, New Delhi, 2009
3. Bharati. V. Pathak, Indian Financial System, Pearson Education in South Asia
Publishing Company, New Delhi, 2006
4. V.A Avadhani, Financial Economics: Theory and Practice, Financial Economics:
Theory and Practice
5. H.J. Johnson, Financial Institutions and Markets, Tata McGraw Hill Publishing
Company Limited, NY,1993

LIST OF CASES

1. Almondz Global Securities Ltd. Vs. SEBI (SAT Appeal No. 275 of 2014)
2. Sahara Asset Management Company P. Ltd. & Ors. Vs. SEBI, Misc.
Application No. 188 of 2017 and Appeal No. 428 of 2015
3. Ratnabali Capital Markets Ltd vs SEBI, CASE NO.: Appeal (civil) 4945 of
2007
4. Securities And Exchange Board Of ... vs Alka Synthetics Ltd. And Ors. AIR
1999 Guj - 221

CASES STUDIES
1. Flipkat IPO,
2. Ujjivan Small Finance Bank IPO,
3. Mindspace Business Parks IPO
 CO PO Mapping
This is to map the level of relevance of the Course Outcome
(CO) with Programme Outcome (PO).
0= No Relevance; 1= Low Relevance; 2= Medium Relevance; 3= High
Relevance
CO PO Mapping
Internal PO1 PO2 PO3 PO4 PO5 PO6 PO7 Sum
C01 3 2 1 2 1 2 3 14
C02 2 2 2 2 2 1 2 13
CO3 3 1 2 3 1 1 2 13
CO4 2 2 1 2 3 2 2 14
CO5 3 1 1 2 2 2 2 13
Target Level Max. 13 08 07 11 09 08 11 67

Mapping of Local/National/Internationa/SDG:

Name of the Local National International SDG Mapping

Subject with (with SDG
Code Number)
Capital Market
Regulations (LW NO YES YES SDG4, SDG8,
4411) SDG 9

Skill and Employability Rubrics:

Unit Name Skill Attained Employability Parameter

1. MODULE 1 CRITICAL THINKING & SELF MANAGEMENT
RESEARCH
2. MODULE 2 ANALYSIS & RESEARCH SELF MANAGEMENT &
ENTERPRENURSHIP
3. MODULE 3 DEMONSTRATIVE EXPERTISE
SKILLS & RESEARCH
4. MODULE 4 ANALYSIS & RESEARCH EXPERTISE
5. MODULE 5 CRITICAL THINKING EXPERTISE

LESSON PLAN

Class Topic Pedagogy CLO Reference

Hour Mapping Material

14 hrs MODULE 1-OVERVIEW OF FINANCIAL Lecture + CO1 L 01 ERM 1

 MARKET Discussion
1.1 Indian Financial Market –
(2 hrs)
Organizational Structure & Constituents of
Financial System.
(2 hrs)
1.2 Historical Development & Growth of
Financial Market in India
(2 hrs) 1.3 Constituents of Financial Market and
Capital Market

(2 hrs) 1.4 Capital market vis-à-vis Money Market

1.5 Capital Market and Money Market
Instruments: Preference shares, Equity
(6 hrs)
shares, Non-voting equity shares, Company
fixed deposits, Debentures and Bonds,
Sweat Equity, FCCBs, GDRs, ADRs &
ECBs, Currency or Money, Treasury Bills,
Treasury bonds, Commercial papers,
Participatory notes, Certificate of deposit,
Bankers acceptances

15hrs MODULE 2 - CAPITAL MARKET Lecture + CO 2 L02 ERM 2

INTERMEDIARIES Discussion
AND REGULATION
2.1 Primary Dealers, Merchant Bankers,
(3 hrs) Stock Brokers, Sub – brokers
(3 hrs) 2.2 Registrar to an Issue & Share Transfer
Agent, Bankers to an Issue

(3 hrs) 2.3 Underwriters & Debenture Trustees

2.4 Depositories: Depository System,
(3 hrs)
Depository Participant, Significance &
Benefit, Rights & Obligations.
(3 hrs)
2.5 Credit Rating & Credit Rating Agencies

14 hrs MODULE 3 - INSTITUTIONAL Expert CO3 L03 ERM 1 &

INVESTORS IN CAPITAL MARKET
Lecture ERM 3
(3 hrs) 3.1 Qualified Institutional Investors Lecture +
3.2 Mutual Funds: Meaning, Types, Discussions
(3 hrs)
Importance, Risks involved, Net Asset
Value
(3 hrs)
3.3 Venture Capital and Alternate
Investment Fund
(2 hrs) 3.4 Private Equity
(3 hrs) 3.5 Foreign Institutional Investors

15 hrs MODULE 4: PRIMARY MARKET Lecture + CO4 L04 ERM 1 &

(2 hrs) Discussion ERM 2
4.1 Conceptual Understanding of primary
market
(4 hrs) 4.2 Functions of Primary Market
(4 hrs) 4.3 Regulatory Framework for Public
Offers and Private Placement
4.4 Procedure of IPO and Private
(2 hrs)
Placement
(2 hrs) 4.5 Mechanism of Price Discovery

14 hrs MODULE 5: SECONDARY MARKET Lecture + CO5 L05 ERM 2 &

(3hrs) 5.1 Conceptual Understanding of secondary Discussion ERM 3
market
(2 hrs)
5.2 Functions of Secondary Market
(2 hrs)
5.3 Stock Exchanges in India
(3 hrs) 5.4 Listing of Securities
(4 hrs) 5.5 Insider Trading Regulations

72 hrs