Assessment Criteria

This course aims to familiarize the students with the different aspects of financial decision making through financial modeling using computer applications specifically Microsoft excel/spread sheet. It is a key domain specific technical skill with an application in major industries like banking, insurance and manufacturing. It equips students in core finance areas such as Equity Research, Investment Banking, Project Finance, Business Analysis, Credit Rating, Mergers & Acquisitions, Financial Analysis, and Corporate Finance with an intention to provide better employability. Students having learned this skill based course can analyse, evaluate and develop a financial model for better decision making. 

•      I.        To impart the concept of financial modeling using different financial variables through hands-on experience

     II.        To equip the students with the ability to analyse and forecast  financial statements of the listed companies in India

    III.        To Construct optimum portfolio using Sharpe Index Model

   VI.    To develop a financial model for project finance

1.  Able to develop financial models using Excel and take financial decisions.
2. Analyse the financial performance of the companies using Balance sheet and Income statement of the stock.
3.  Able to take Buy/ Sell / Hold decisions based on forecasting and valuation of the companies.
4.  Able to identify the optimum portfolios and proportions to invest in different stocks using Sharpe Index Model
5. Able to decide the viability of franchise model
6.  Able to assess the value or return of the selected stock using CAPM
7. Able to take viability of the project decision based the constructed project model. 

Formatting of Excel Sheets, Use of Excel Formulae Function, Advanced Modeling Techniques, Data Filter and Sort, Charts and Graphs, Table formula and Scenario building, lookups, pivot tables, Macros, Recording of Macros, understanding Visual Basic Enviornment (VBE)

Build a financial model from a scratch using the best structuring techniques - Use efficiently key Excel functions to construct sound financial forecasting models - Economy Industry and Company Framework - Step by Step analysis of company- Interpret and analyze the key ratios used in a financial forecast - Projecting B/S , Income statement and Cash Flows - Developing dynamic models using Excel - Equity Valuation using DDM, DCF, Relative Valuation , Residual Valuation and - Regression Based Models - Preparing a comprehensive high quality report

Understanding Integrated Financial Models - Scenario Analysis - Excel Efficiency Shortcuts and formulae - Cash and Interest Revolver - Building Historical Financial Statements - Ratio Analysis - Projecting Financial Statements.

Building Merger Inputs - Stock and Cash Mix Deal - Contribution Analysis - Accretion and Dilution -

Why Project evaluation; stage of project; construction & development phase; funding  during investment phase; costs during investment phase; life of project; decision making, cash flow waterfall & resolve circular reference problem in interest during construction; Understanding Date functions, Modeling Cash flow waterfall, Delays in Projects

Prepare an Income Statement, Balance sheet, Cash Flow Statement, Geographic  Revenue Sheet, Segment Revenue Sheet, Cost Statement, Debt Sheet, Analyze Revenue Drivers - Forecast Geographic Revenues, Segment Revenues, Geographic Revenues, Cost Statement, Debt, Income Statement, Balance Sheet, Cash Flow Statement. Performa Adjustments, Income Statement - Compute Margins, Balance Sheet -Compute Ratios

Cash Flow Statement Projection, Valuation- Discounted Cash Flow Method (DCF), Valuation – Relative Valuation (Football Field Chart)

Valuation – Assumptions for Valuation Model, Prepare Valuation Model, Prepare Presentation Sheet, Prepare

 1.      Financial Modeling – Simon Benninga, MIT Pr.

2.      SWAN, Practical financial modeling, ELSER publications, 2nd edition

3.      Alastair Day, Mastering Financial Modelling in Microsoft Excel : A practitioner's guide to applied corporate finance (English) 2nd Edition

The  objective  of  this  course    is  to  acquaint  students  with  the  advanced  concepts  of  financial management and the application of the same in developing financial strategies for the organization. Achieving competitive advantage through strategic financial management is inevitable in this 21^st century business world. This subject explores the contemporary concepts and trends in strategic financial management (SFM), particularly focusing on cutting-edge areas like corporate valuation methods, value based management, need, causes and impact of Buy-back of Shares, Takeover Tactics, organizational architecture and other related areas of strategic financial decision making in the present corporate world. 

§  Critically appraise the various methods of corporate valuation and compare them from the strategic perspective

§  Analyze and debate the reasons for/against M&As and Buy back of shares

§  Critically assess various financial risk management approaches with reference to takeover tactics

§  Debate on the existence of the organizational architecture

§  Contribute more effectively to corporate strategy by taking a more proactive and
forward looking approach

Concept of strategy: Defining strategy, levels at which strategy operates. Approaches to strategic decision  making,  Mission  and  purpose,  objectives  and  goals,  strategic  business  unit  (SBU).  Functional level strategies.   Strategic decision making framework - Interface of Financial Policy and strategic management - Balancing financial goals.

Lease Financing: Meaning – definitions -Types – (Finance Lease and Operating Lease, Sale and Lease Back and Direct Lease, Single Investor Lease and Leveraged Lease, Domestic Lease and International Lease) - Lease Agreement - Tax provisions - Accounting Treatment of Lease - Lease Evaluation [Lessor’s & lessee view point] (concepts and problems.)

Off Balance sheet financing – reasons – methods and implications

Strategic decisions on capital budgeting – strategic Cost of capital – leverages – Operating capital financing decisions– leverages – dividend decisions. 

Adjusted book value approach – stock and debt approach – direct comparison approach – discounted cash flow approach – DCF Approach two and three stage models – Free cash flow to equity valuation

Marakon approach – ALCAR approach – Mckinsey approach – EVA Approach – BCG Approach

Capital funds – Definition - origin  - Differentiate PE funds, VC funds, and Angel investors – Features of  Venture Capital - stages of Venture Capital - process of selection of investment – growth of venture industry in India. Crowd funding in US and latest developments in india - cloud investments - Corporate Governance - Balance Score card – Financial management of sick units – Financial management in Intangible Intensive companies – Corporate Risk Management and Financial Engineering 

CIA 2: 50 Marks

CIA 3: 20 Marks

End Semester Examination: 100 Marks

Course Description

The study of Indian taxation and practice is of great importance for management students as it exposes students to the tax environment in India. It enables individuals to understand the tax implication on income or profit made through different sources. The course introduces students to taxation in India: Direct and Indirect taxes. The study imparts both conceptual and applications of Income tax under the head of salary, house property, business and profess, capital gain, other sources and of Indirect taxes such as GST and Customs. The course aims at comprehending with the effects of tax policies on the Indian economy and its significance. The Tax data analytics interface, helps in understanding the use of vast tax data available and its analysis in predictions and policy decision making.

Course Objectives:

• To enable students, understand the provisions of various Indian Taxation Laws such as Income Tax Act,1961, GST Acts, 2016 and Customs Act 1962.
• To gain knowledge on different ways of computing Income tax for various assessees.
• To impart knowledge pertaining to various regulations ofGST and Customs.
• To make students aware of importance of tax planning for all types of assessees.
• To enable students, understand the implications of taxation on the Indian economy.
• To familiarize with tax data analytics and policy decision making using the same.

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

• Understand major provisions of various Indian Taxation laws.
• Apply various aspects of taxation, both Direct and Indirect taxes in various aspects of personal and professional life.
• Appreciate the GST implementation and compute GST payable, along with custom duty as another part of Indirect taxes.
• Comprehend with tax management, planning and administrative procedures.
• Relate the effects of tax policies on the economy of a nation.
• Champion in the use of tax data analytics to make meaningful interpretations.

Level of Knowledge: Conceptual

Introduction To Taxation-Direct And Indirect Tax, Income Tax Act 1961, Income Tax Rules 1962, Finance Act, Scheme of IT An Over-View Basic Concepts- Assessee, Person, Assessment Year, Previous Year, Agricultural Income, Income, GTI, Total Income, Average Rate Of Tax Capital And Revenue.

Level of Knowledge: Conceptual

Determination of residential status, Kinds of income, incidence of tax, Tax free income,Tax Planning special reference to 100% EOU and SEZ/FTZ.

Level of Knowledge: Application

Income from Salary- Briefly about components of salary, pension, retirement benefits and section 16, Income from house property - Briefly about GAV, NAV and deductions u/s 24, Profits and Gains of Business and Profession – Briefly about Depreciation and general deductions u/s 37(1), maintenance of accounts u/s 44AA, Capital Gains – Briefly about STCG, LTCG and slump sale, Income from other sources – Briefly about dividends, casual income and interest income. Small problems under each head,More problems on Computation of GTI.

Level of Knowledge: Application

Income of spouse, son’s spouse, minor child, converted property. Carry forward and Set off of losses, Deductions from u/s 80 C to 80 U, Rebate u/s 87A, Relief u/s 89; Procedural Compliance: Permanent Account Number /Tax Collection Account Number TAN; Introduction to Tax Deduction at Source TDS & Tax Collection at Source TCS(Briefly); Advance Tax & Self-Assessment Tax; IT Returns, Signatures, E-Filing ; Fee and interest for default in furnishing return of Income ; Collection, Recovery of Tax, Refunds.

Level of Knowledge: Application

Detailed aspects of Tax planning for Individuals – salaried (More than one house loan, HRA or RFA, Medical allowance or medical perquisite; pensioners – various investment schemes and their tax implications; Business organizations and Startups.

Level of Knowledge: Conceptual

Concept of Indirect Taxes at a glance, Pre-GST tax structure and deficiencies; Basics of Goods and Services Tax GST- concept and overview; Constitutional Framework of GST; GST Model – CGST / IGST / SGST / UTGST; Taxable Event; Concept of supply including composite and mixed supply; Levy and collection of CGST and IGST; Composition scheme & Reverse Charge; Exemptions under GST.  Concept of Time, Value & Place of Taxable Supply, Input Tax Credit Customs Act; Overview of Customs Act: Overview of Customs Law; Levy and collection of customs duties; Types of Custom duties; Classification and valuation of import and export goods.

Level of Knowledge: Conceptual

Tax incidence- Economy vs statutory incidence, partial equilibrium model; Efficiency cost of taxation – Excess burden of tax; Tax policy implications; Optimal taxation - Income tax (Laffer curve) and commodity tax (Ramsey model) Basic problems.

Level of Knowledge: Applicationareas of Tax data analytics, Introduction to tax data analytics; Interpretation of Tax data such as PAN, TAN, TIN, various types of assesses, revenue collected, zone wise tax collected –both direct and indirect taxes using MS Excel based visualization and predictive analysis tools.( data source: http://www.mospi.gov.in/statistical-year-book-india/2017/175: Ministry of Statistics and Program Implementation and https://www.incometaxindia.gov.in/Pages/Direct-Taxes-Data.aspx).

1.       Dr. Bhagawathy Prasad. Direct  Tax Law And Practice. Mumbai, New Age Publications

2.       Dr. H.P Mehrotra. Direct Tax Law And Practice. New Delhi,SahityaBhavan Publications

3.       T S Manoharan. Direct Taxes. Pearson Education Publications.

4.       VS Datey, 2018 , GST ready Reckoner,  New Delhi, Tax Man Publications.

5.       Dr. Vinod .K. Singhania ,Students Guide To GST and Customs, New Delhi, Tax Man Publications.

6.       Web references: www.incometaxindia.gov.in, www.gst.gov.in, www.icai.org.

Dr. Vinod .K. Singhania ,Students Guide To Income Tax, New Delhi, Tax Man Publications.

In economics, a financial market is a mechanism that allows people to buy and sell financial securities such as stocks, bonds and other commodities items of value at low transaction costs and at prices that reflect the efficient-market hypothesis. In case of general market are concerned and specialized markets exist. Markets work by placing many interested buyers and sellers in one "place", thus making it easier for them to find each other. An economy which relies primarily on interactions between buyers and sellers to allocate resources is known as a market economy in contrast either to a command economy or to a non-market economy such as a gift economy. In finance, financial markets facilitate the following activities like rising of capital in the capital markets, transferability of risk from the various markets, transferability of liquidity in the money markets and international trade in the currency markets are used to match those who want capital to those who have it.  Frankly speaking, investing has been perceived as the chief source of finances of the rich people and has also been viewed as a minefield of opportunities to the inexperienced. For the reason that the western standards of living continue to improve, more and more individuals start to recognize the advantages investing can give even if they only have a small capital. The introduction to investment will help you explore a few basic principles to get you started the right way.

Basics of investment - Scope - Economic meaning and significance of income, savings, investments, security, speculation, and gambling Comparison between investment and speculation - Profile of Indian investors and factors influencing investment decisions - Internal and external factors, Legal framework of securities market in India, investors and stock exchanges, and its significance in Indian financial system.

Level of Knowledge: Conceptual

vestment Options & Attributes Characteristics features of financial instruments, Types of financial assets & Instruments, Various investments - Company Shares, Debentures, Bonds, Mutual funds, fixed deposits, gilt- edged securities, Futures & Options, post office schemes, company & PPF, UTI, LIC, Real Estate, bullion, insurance schemes & Global securities - Risk, Return, Security, Maturity & Optional features. Finance Vs Investments- interactive decision elements.

Level of Knowledge: Conceptual

Security Markets Features of capital markets and functioning, New issues market -  IPO’s, procedures - valuation of issues  - fundamental and technical considerations - Stock exchanges - role and importance, trading procedures in securities, - brokers and Jobbers, Index’s -  Role of SEBI in brief.

Level of Knowledge: Application

Security Analysis Risk perception and attitude, Systematic and Non-Systematic risks,Fundamental analysis - Company, Industry and Economic analysis - Technical analysis of securities - Charts, and Graphs -  Moving averages  - Types - implications on investment.

Level of Knowledge: Application

Security pricing - Security Valuation - Factors influence valuation - Valuation of fixed income instruments and equities - calculation of return on yield, Intrinsic value, Mathematics of financial evaluation, discounting, compounding, annuities, present value, and yield and calculations Net worth.  Equity valuation - Constant Growth Modal - Dividend capitalization - Earnings capitalization, security pricing model

Level of Knowledge: Application

Portfolio Management; Meaning, Return on portfolio, risk on portfolio, portfolio managers, SEBI guidelines for portfolio managers, portfolio management services. Portfolio theory - contribution of William Sharpe and Harry Markowitz, Single index model, capital asset pricing modal and arbitrage pricing theory

1. Ronald Fisher & Jordan (2009). Investment Management. New Delhi. Tata Mc Grawl Publication.
2. Punithavathy & Pandian (2008). Security Analysis and Portfolio Management. New Delhi. Vikas Publishing House Pvt. Ltd.

1. Prasanna Chandra, Investment Analysis And Portfolio Management, 4th Edition, Tata McGraw Hill
2. M. Ranganathan and R. Madhumathi (2010). Investment Analysis and Portfolio Management. New Delhi. Pearson Education Press
3. V. A. Avadhani (2005). Security Analysis and Portfolio Management (7th ed.). New Delhi. Himalaya Publication.
4.  V. K. Bhalla (2009). Security Analysis and Portfolio Management. New Delhi. Sultan Chand Publisher.

Level of Knowledge: Conceptual and Application

Course Outline                                                                                              Total Hrs: 60

UNIT: 1 - Nature & Scope of Investments                                                                6 Hrs

Level of Knowledge: Conceptual

Basics of investment - Scope - Economic meaning and significance of income, savings, investments, security, speculation, and gambling Comparison between investment and speculation - Profile of Indian investors and factors influencing investment decisions - Internal and external factors, Legal framework of securities market in India, investors and stock exchanges, and its significance in Indian financial system. Characteristics features of financial instruments, Types of financial assets & Instruments.

UNIT: 2 - Financial Markets in India                                                                       10 Hr

Level of Knowledge: Conceptual

Security Markets Features of capital markets and functioning, New issues market -  IPO’s, procedures – Book Building procedures, ASBA, role of Anchor Investors and Book running lead managers, valuation of issues  - fundamental and technical considerations - Stock exchanges - role and importance, trading procedures in securities, - brokers and Jobbers, Index’s -  Role of SEBI in brief.

UNIT: 3 - Risk & Types of Investment Analysis                                                     9 Hrs

Level of Knowledge: Application

Security Analysis Risk perception and attitude, Systematic and Non-Systematic risks,Fundamental analysis - Company, Industry and Economic analysis - Technical analysis of securities - Charts, and Graphs -  Moving averages  - Types - implications on investment.

UNIT: 4 – Security Valuation                                                                                    10 Hrs

Level of Knowledge: Application

Security pricing Security Valuation - Factors influence valuation - Valuation of fixed income instruments and equities - calculation of return on yield, Intrinsic value, Mathematics of financial evaluation, discounting, compounding, annuities, present value, and yield and calculations Net worth.  Equity valuation - Constant Growth Modal - Dividend capitalization - Earnings capitalization, security pricing model

Unit: 5 - Capital Asset Pricing Model  (CAPM)                                                         10 hrs

Efficient frontier with a combination of risky and risk free assets. Assumptions of single period classical CAPM model. Characteristic line, Capital Market Line, Security market Line. Expected return, required return, overvalued and undervalued assets. Mutual Funds :Introduction, calculation of Net Asset Value (NAV) of a Fund, classification of mutual fund schemes by structure and objective, advantages and disadvantages of investing through mutual funds. Performance Evaluation using Sharpe‟s Treynor‟s and Jensen‟s measures and Fama's Decomposition.

UNIT: 6 - Portfolio Management                                                                              10 Hrs

Level of Knowledge: Application

Portfolio Management; Meaning, Return on portfolio, risk on portfolio, portfolio managers, SEBI guidelines for portfolio managers, portfolio management services. Portfolio theory - contribution of William Sharpe and Harry Markowitz, Single index model, capital asset pricing modal and arbitrage pricing theory

Learning Activities

Lecture led discussions, Case Studies, Article Review, Classroom Debates/Discussion, Mock Investment, Problem Solving, Research Papers and Videos etc.

Course Description

Derivative securities are the most rapidly growing area in the global financial market. The purpose of this course is to provide a comprehensive analysis on the properties of Options and futures and to offer a theoretical framework within which all derivatives can be valued and hedged. Topics covered includes simple arbitrage relationships for forward and Futures contracts, hedging and  basis risk,  stock index futures, swaps, trading strategies Involving options, valuation of options using  a binomial model and the Black ‐Scholes formula, financial engineering and security design. This course also familiarize the students with the functioning, settlement systems, the factors influencing the commodity markets, the global and the domestic scenario of commodity markets, its role in the economy and the risk management aspects relating commodity trading.

Course Objectives

1. To familiarize students with the functioning, settlement systems, the factors influencing the commodity markets.
2. To understand the global and the domestic scenario of commodity markets, and its role in the economy.
3. Apply derivatives instrument the risk management aspects relating commodity trading.
4. Understand the warehousing procedures and delivery systems in commodity markets.
5. To develop trading strategies using stocks, indices and commodities.

Level Of Knowledge: Conceptual

Derivatives defined - Types of derivatives - Financial derivatives - Commodity derivatives - Products, participants and functions – Exchange – traded versus OTC derivatives - Instruments available for trading -  Types of instruments (future, options) Basics – Payoffs - Using commodity derivative Markets -  Hedging – Speculation – Arbitrage

Level Of Knowledge: Application

Risk Management using forwards and futures futures terminology, forward and future differences, limitations of forward markets, futures pay off – pay off for buyer and seller of future - Long future and Short future, application futures- Hedging, speculation and arbitrage, contract specification for stock futures and index future, eligibility criteria of stocks and indices.

Risk management using options  optional terminology, types of options and specifications option pay off –long short assets, long and short call, long short put, Margin, factors affecting options pricing , pricing of options, options Greeks,  application of options-hedging and speculation, contract specification for stock and index option, option strategies (applications)

Level Of Knowledge: Conceptual

How they differ from financial derivatives – Warehousing - Quality of underlying assets

Global commodities exchanges - Commodities exchanges in India (regional & national)- Commodities permitted for trading - Kabra Committee Report (Roadmap) – Commodity - specific issues - Cropping and growth patterns - Global and domestic demand- supply – dynamics - Price trends and factors that influence prices

Level Of Knowledge: Application

Investment assets versus consumption assets - The cost of carry model - Pricing futures contracts on investment commodities - Pricing futures contracts on consumption – commodities - The futures basis-Option valuation models-Black Scholes, Binomial theorem.        

Level of Knowledge: Conceptual

About MCX - Exchange membership - Rules, regulations, byelaws - Commodities to be traded on the MCX platform - Types of commodities - Bullion (silver & gold) - Agricultural commodities and Currency Derivatives. Trading on the MCX platform - Contract specifications - Trading system - Entities in the trading system – Trader – workstation - Order types and conditions - Exposure limits.

Foreign Exchange Derivatives – Definition, market players, growth drivers, key economic functions of currency derivatives. Trading on currency derivatives at NSE and MCX.

Level Of Knowledge: Conceptual

Calendar and settlement schedule - Position determination - Settlement mechanism - Daily Mark to Market Settlement - Settlement price - Daily settlement price – Final - settlement price – Margining - Initial margin - Daily Mark to Market margin – Open - interest limits - Second Line of Defence  - SPAN@ - Final settlement - Cash settlement - Physical settlement(Warehousing) - Exception Handling - Funds Shortages - Delivery Shortages

Level of Knowledge: Conceptual

Rules governing Commodity Derivatives Exchanges - Rules governing Intermediaries - Investor Grievances, Arbitration Rules - Accounting and Taxation issues.

2.      Hull, John C., “Options, Futures and Other Derivatives”, 6^th edition, Prentice Hall India.

3.      S.L.Gupta (2011) Financial Derivatives – Theory, Concepts and Problems. New Delhi. Prenctice hall publications.

4.      “Futures and Options” Mumbai, BSE Book's Publication.

5.      Avadhani, V.K., “Security Analysis and Portfolio Management” 7^th edition, Himalaya Publication.

6.      Mahajan R., (2011), “Futures & Options - Introduction to Equity Derivatives”, Vision Books

COURSE DESCRIPTION

This course provides an understanding of the banking and Insurance Industry and technological developments. It focuses on the important tools and, techniques, rules & regulations related to Insurance Business in India and to contribute effectively industry in particular and to the society in general. It explains the concept of retail banking products and services and insurance sectors and how it is used to cover risk. How insurance is transacted as a business and how the insurance market operates is also explained. The relationship between insurers and their customers and the importance of insurance contracts are discussed.

LEARNING OBJECTIVES

1. To understand the retail banking products and services and role of technology in retail banking industry.
2. Dimensions of Technological disruptions and reachability in banking and insurance sector.
3. To evaluate the developments in Cyber Security and Banking software based security
4. To understand different insurance contracts and rules and regulations governing the insurance industry.

Concept of Retail Banking-Retail Products Overview: Customer requirements, products development process, Liabilities and Assets Products-Retail strategies-trends and optimization in retail banking channels-Current Trends in retailing- Technology for retail banking-Fintech disruption in retail banking. Corporate banking: Concept of corporate banking- services provided: Cash Management - Salary Payment - Debt Management - Factoring and Forfaiting – Trusteeship - Custodial services - Business advisory - Off shore services –loan syndication-venture financing -Trade financing services: Documentary letter of credit, collection and guarantees- Trends in trade financing: Application of block chain technology-Forex Management etc.-Technology trends in wholesale banking- Structure and functioning of investment banks in India-International banking scenario

Need for regulation in banks-Compliance Risk and significance of Compliance Function-steps taken by banks for compliance-scope of compliance function -Reasons for compliance failures-Anti-money laundering: Prevention of money laundering act (PMLA)-Customer due diligence-Know your customer norms- International sanctioning-Financial Intelligence unit-fraud detection and management in banks

Information security- software based security systems- hardware based security systems (smart card, M chip)- hackers- techniques used by the hackers- phishing- pharming- key loggers- screen loggers- phishing Trojans- transaction poisoning- card related fraud- site cloning- false merchant site- authentication methodologies and security measures (password protection- smart cards- biometric characteristics)- encryption and security- customer confidentiality- regulatory environment of internet banking.

Level of Knowledge: Conceptual

Historical perspective, Meaning, Nature and Scope of Insurance, Classification of Insurance Business- Life Insurance and General Insurance- Fundamental  principles of insurance- Essentials of Insurance Contracts. Indian Insurance Industry- Insurance sector Reforms in India-Liberalization of Insurance Markets-Major players of Insurance. Regulation of Insurance-IRDA

Level of Knowledge: Conceptual

Regulations relating to Life Insurance-General principles of life insurance contract proposals and policy; assignment and nomination; title and claims; concept of trusts in life policy; Growth of Actuarial Science-Features of Life Insurance-Life Insurance Contract-Life Insurance Documents-Insurance Premium Calculations. Classification -Classification on the Basis –Duration-Premium Payment- Participation in Profit-Number of Persons Assured-Payment of Policy Amount-Money Back Policies-Unit Linked Plans.  Annuities -Need of Annuity Contracts -Classification of Annuities. General Insurance-Laws Related to General Insurance-General Insurance Contracts, different products of general insurance.

Electronic delivery channels -Core banking Solution: concept, functioning, core banking software developed by IT companies-Inter-bank payment system- Structured messaging system-Global developments in Banking Technology-Banking technology development in the Indian scenario: role of IDRBT-Digital banking dimensions: Customer dimension (customer in a digitalized environment), Regulatory dimension- Technology dimension, Data dimension- Analytical dimension (customer analysis, analytical CRM, fraud analytics, risk analytics, operational analytics, HR analysis), Block Chain Technology, digital insurance, and emerging technology.

2.      Dr G Syamala Rao (2011).Growth and Performance of Insurance Sector with Special Reference to LIC of India. New Delhi Excel Publishing

3.      Panda G.S., (2012) “principle and practice of insurance”bengaluru, kalyani publishers.

4.      Scott E. Harrington, Gregory R Niehaus, (2007), “Risk Management and Insurance”, Second Edition, Tata McGraw Hill Publishing Company Limited, New Delhi.

5.      Dorfman, Mark S., (2008), “Introduction to Risk Management and Insurance”, Ninth Edition, Prentice Hall India, New Delhi.

6.      George E Rejda, (2009), “Principles of Risk Management and Insurance”, Twelfth Edition, Pearson, New Delhi.

7.      P. Periasamy, (2009), Principles and Practice of Insurance”, Second Edition, Himalaya Publishing House, Mumbai.

8.      Emmett J. Vaughan, Therese Vaughan, (2007), “Fundamentals of Risk and Insurance”, First Edition, Wiley India, New Delhi.

9.      C. Arthur Williams, Jr. Peter Young, Michael Smith, (2007), “Risk Management and Insurance”, Eighth Edition, Tata McGraw Hill Publishing Company Limited, New Delhi.

10.  Kakkar D.N. & Srivastava S.N.- Insurance & Risk Management (New Age Publication, New Delhi)

Course Description

The course offers an introduction into the evolving and expanding practice of financial risk management. Risk management is a complex process of identifying, quantifying and managing various risk exposures. The course analyzes and discusses the various sources of risk. Particular attention is devoted to the main risk management techniques such as Value at Risk (VaR), volatility models, and correlation models. The course focuses on the main issues of financial risk management. Risk management has emerged as one of the most important area in finance. The evolution of this subject has been attracting the interest of both practitioners and academia. Therefore, the course is a blend of theory and application. Real data analysis is an important part of this course. A student successfully completing this course will be familiar with the main current practices of financial risk management.

 Course Objectives:

The primary objectives of this course are,

• To foster an understanding of the financial risks and the methods often used to manage those risks.
• To familiarizes students with the market instruments, valuations and market operation practices in India.
• To provide insight about the relationship of the Risk and Return, Measuring risk, bringing returns according to the expectations of the investors in the fixed income market.
• To control for market and credit risks. Liquidity, operational, and legal risks are discussed.

An Overview, Evolution, and the Environment. Risks definition (market, credit, liquidity, operational), more specifically on the identification of different forms of risk (currency, interest rate, equity, commodity).

Probability and distributions of asset prices, measuring return and risk, Modeling Risk Factors, Using implied volatility in Value-at-Risk measures Risk and volatility Measurement.

The issue of time aggregation, different measures of volatility such as AR, ARMA, EWMA, ARCH & GARCH processes, volatility clusters and the issue of time varying volatility.

concept and computation of Var using different approaches, expected shortfalls, treasury applications Stress testing and back-testing, Extreme Value Theory

Probability of Default, Credit ratings & Transition Matrix analysis, Contingent claim approach and the KMV Model, Credit Risk Management and Credit VaR. Indian environment in VaR applications (NSE, BSE, MCX, CCIL), RBI guidelines for credit & market risk management, VaR based margining.

Futures and Forwards - Differences- valuation of futures, valuation of long and short forward contracts. Mechanics of buying & selling futures, Margins, Hedging using futures - specification of futures - Index futures, interest rate futures - arbitrage opportunities.

Case Discussions (Asia Currency Crisis , Amaranth Hedge funds, Allied Irish Bank Bank of Credit and Commerce International (BCCI), ERM Crisis, Orange County, Barings, Daiwa, Kidder Peabody, Metallgesellschaft, Northern Rock, Procter and Gamble (P&G), US Savings & Loan Crisis, etc) An Integrated Risk Management framework, Operational, An integrated approach to risk management considering issues such as operational, supervisory, legal, Accounting, Issue of Governance ratings and risk in institutions, the role of risk management offices (front, middle and back offices), Risk reporting, Risk Budgeting and Setting Risk Limits, limits using notional, stop loss and Var based limits, establishing trading limits.

Essential Readings:

John Marthinsen (2009), Risk Takers: Uses and Abuses of Financial Derivatives, 2nd Edition, Pearson Education.

Books for reference:

1.       Peter Christoffersen (2003), Elements of Financial Risk Management, Academic Press.

2.       Robert McDonald (2006), Derivatives Markets, 2nd Edition, Addison Wesley.

3.       Jonathan Mun (2006), Modeling Risk: Applying Monte Carlo Simulation, Real Options Analysis, Forecasting, and Optimization Techniques, 1st Edition, Wiley. 

4.       John Marthinsen (2009), Risk Takers: Uses and Abuses of Financial Derivatives, 2nd Edition, Pearson Education.

5. Hull, John C., “Options, Futures and Other Derivatives”, 6^th edition, Prentice Hall India.

Candidates are required to choose any one course from the following, to be pursued under the guidance of a faculty/self-study mode, using online resources and open market certifications.  

1. Credit risk modeling
2. Financial Modeling
3. Business Analytics
4. Artificial intelligence in Finance etc.,

At the end of the course students will be to

1.  Explain the basics of risk modeling aspects in the field of finance.
2.  Understand and appraise the risk model techniques
3. Apply the knowledge of risk management in financial markets and technological developments in managerial decision makings under a given situation.

Some of the indicative courses that can be taken up by the students that fulfills the course objectives are as follows.

1. Data Structures and financial application programming
2. R Application for financial decisions
3. Python Programming for financial decisions
4. Info graphics and Data Visualizations
5. Securities Market Certifications

25 Marks for Viva Voce Examination

Aninternshipisawork-relatedlearningexperienceforindividualswhowishtodevelophandsonexperienceinaspecializedfieldofoperation.Itinvolvesorganizationalstudyandemphasizesexposuretodifferentworkenvironmentofanorganization.ItismandatoryforthestudentsMBAFMto take up specificassignment or problemgiven bythe organization during their studyperiod.

Objectives:

1.      To acquaint students with the different domains of knowledge in the corporate world.

2.      To provide real time work exposure to students so as enable them to equip themselves for facing the challenges of the corporate world in this competitive environment.

3.      To enable students to identify the knowledge and skills required to execute the operational aspects of various domains in the corporate world through industry interaction.

Compliances during the internship

1.      Duration:It is a 45-60 days internship for MBAFM students.

2.      TypeofOrganizations:Studentsarerequiredtoworkwithanyorganizations,whicharePublicor Private limitedcompanies.It mayinclude service or Manufacturingsectors.

3.   Sectors:BankingandFinance,Riskmanagement,Projectconsulting,Creditratings,CapitalMarkets,Insurance, Mutual Funds and other financial service related areasof operations.

4.      Operations:Studentsmayworkinaccounts,Taxation,finance,cashmanagementoranyotherfinance related departments of an organization.

5.      Reporting:Studentsshouldinteractwiththefacultyguideeveryweek&reporttheprogressmade. Students have to take the instruction from thefacultyguidefrom timeto time.

Note:

1.      PrimaryResearch maynot be always needed

2.      Hypothesis testing: experimental research(forestablishingrelationships)

3.      For survey/Description Research– Hypothesistestmaynot berequired.

4.      Report: 1 copyto University,1 student copyand one for companyif required.Size-50-60 pages (Indicative)-

HardBound

Font Size=12 forthe body/14 forheadings

1.5 line spacing

A4 SizeExe. Bond Paper.Font style TNR.

Foot notes- End ofeachchapter.Referencesat the end ofeachchapter.Bibliography– APA 6thedition formattingBar, Charts, Diagramsmustbeused

1. Demonstrate the different domain knowledge with real time work experience and face the challenges and handle tasks independently. 
2. Execute the operational aspects of various domains with confidence.

1.      Duration:It is a 45-60 days internship for MBAFM students.

2.      TypeofOrganizations:Studentsarerequiredtoworkwithanyorganizations,whicharePublicor Private limitedcompanies.It mayinclude service or Manufacturingsectors.

3.   Sectors:BankingandFinance,Riskmanagement,Projectconsulting,Creditratings,CapitalMarkets,Insurance, Mutual Funds and other financial service related areasof operations.

4.      Operations:Studentsmayworkinaccounts,Taxation,finance,cashmanagementoranyotherfinance related departments of an organization.

5.      Reporting:Studentsshouldinteractwiththefacultyguideeveryweek&reporttheprogressmade. Students have to take the instruction from thefacultyguidefrom timeto time.

PART – II: InternshipReport Submission(50 Marks)

ThefinalInternshipreportisamanagementproblem.Thestudentmayworkonanorganizationcentricproblemoronageneraltheme.Thefinalprojectisexpectedtoprovidepracticalsolutionsto the problem studied. The following arethe suggested steps:

a)  Thecontents of thereportshould be:

Chapter: 1 Background of thestudyChapter: 2CompanyandIndustryprofileChapter: 3 Methodologies

Chapter: 4Collection and Preliminaryanalysis ofdataChapter: 5 SummariesofFindingsand ConclusionsChapter:6 Suggestions

Bibliography Appendices

Note:

1.      PrimaryResearch maynot be always needed

2.      Hypothesis testing: experimental research(forestablishingrelationships)

3.      For survey/Description Research– Hypothesistestmaynot berequired.

4.      Report: 1 copyto University,1 student copyand one for companyif required.Size-50-60 pages (Indicative)-

HardBound

Font Size=12 forthe body/14 forheadings

1.5 line spacing

A4 SizeExe. Bond Paper.Font style TNR.

Foot notes- End ofeachchapter.Referencesat the end ofeachchapter.Bibliography– APA 6thedition formattingBar, Charts, Diagramsmustbeused

Viva Voce examination: 50 Marks

Course Description                                                                                     

Finance is one of the areas in which data is more useful and yet one of the most difficult ones.Financial time series data are indeed a challenging for modeling financial problem. The purpose of this course is to provide students a greater appreciation, both conceptual and techniques of the uses of data mining and big data in financial service. The course covers a number of themes and practical problems that combine data analysis, algorithms, financial issues and their applications in a data driven financial environment. With increased data availability and complexity comes the need for finance professionals who are not only able to work with data, but can separate insights from noise. This course introduces a core set of modern financial analytical concepts and techniques that specifically target finance applications.

Course Objectives:

1. This course is intended to expose the students to the latest algorithms and tools of Financial Analytics and applying those tools for effective decision making.
2. Understand why analytics is a key competency essential for financial & banking Sector
3. Understand how financial organization can organize, enhance and store their business data
4. Interpret and analyze financial data to derive actionable intelligence and decision making.

Data – Information – Intelligence – Knowledge Approach, Overview of Business Analytics, Stages of analytical evolution, CRISP-DM (Cross-Industry Standard Process for Data Mining), Types of Data Sources- Structured data, Semi structured Unstructured data, different types of financial data, Business Analytics Tools and Software, Role of Business Analyst in Finance & Banking Sector, Business Analytics Process, Business Analytics Architecture & Framework.

Introduction to OLTP and OLAP, Data Mart, Data Lake, Data Warehouse Architecture & Data Warehouse Design, Extract Transform Load (ETL), Data Mining Concepts, Architectural aspects of Data Mining, Data Mining Techniques - Linear Regression, Logistic Regression, Cluster Analysis, Classification, Association, Decision Tree, Data Mining Issues & Challenges, Financial Data Mining, Data Mining in Banking and Finance, Big Data in Banking and Finance, Big Data challenges in Financial Sector

Financial Analytics - Financial time series prediction, Stock Prediction, Foreign Exchange Rate Prediction, Bankruptcy Prediction, Analytics in Retail banking (Credit Risk Management and Credit scorecards), Quantitative Trading, Algorithmic Trading,Loan Prediction, Insurance Analytics, Forensic Analytics.

Data types in R, Data Structures in R, Data handling in R, Data Preprocessing in R, Function in R, Data Exploration in R, Graphics in R, Financial Statistics, Statistical analysis of financial data, Distribution of financial data, Financial Ratio, Correlation, Regression Analysis, OLS Regression Analysis, Testing Normality, Volatility Models, Reading Time Series Data, Plotting Time Series Data, Graphical Analysis of Simulated Financial Data.

Case studies of how Data & Analytics is enhancing and transforming traditional Finance, Accounting functions,  and Banking, Case Study related to financial analyticsin various finance organization, National / International Banking and Insurance Sector.

Course Description:

International finance is a branch of economics that studies the balance of payments issues, exchange rates, foreign direct investment, capital flows, trade deficits, and surpluses, and how they affect international trade and the global economy. The players in the foreign market are increasing in numbers with the presence of the much more liberalized policies and regulations. Students need to acquire knowledge on the functioning of trade globally and its financial implications. Knowledge of foreign exchange activities and the hedging of foreign exchange exposures and other related aspects of risk coverage while doing international business shall be imparted. The objective of including multinational financial management is to provide clear understanding about BOP, FOREX, Hedging in international market.

Course Objectives

1. To understand with deregulation of financial markets, globalization, technological development that have increased competition in International financial markets.
2. To analyse foreign exchange markets, euro currency, International bond markets which are crucial to international business.
3. To Understanding of various Hedging techniques
4. To develop skills in Forex trading capabilities
5. To evaluate the implications of international trade on the country’s development.

1.      Understand with deregulation of financial markets, globalization, technological development that have increased competition in International financial markets. Hence the International Finance shall help students in decision making in an international context.

2.      The syllabus covers foreign exchange markets, euro currency, International bond markets which are crucial to international business.

3.      Understanding of various Hedging techniques

4.      Increase Forex trading capabilities

5.      Implications of international trade on the country’s development.

Level Of Knowledge: Conceptual

Evolution of the International Monetary system, Bimetallism, Classical Gold standard, Interwar period, Bretton woods system, Flexible Exchange rate regime. The current exchange rate agreements, European monetary system, Mexican peso crisis, Fixed Versus Flexible Exchange rate regime. Foreign Exchange Markets - The structure of the FOREX markets, Functions of Foreign exchange markets, The foreign exchange rates, Arbitrage – Theory & problems on Locational, Triangular & Interest rate arbitrage, The spot market, Cross rates of exchange, Bid-ask spreads, The forward market, The regulations.           

Level Of Knowledge: Conceptual

Concept of Balance of payments, Concept and Principles behind compilation of BoP account, Components of  BoP and factors affecting them, Importance and Limitations of BoP statistics, Relationship of BoP with other Economic Variables,Currency convertibility with reference to India.                                                                                                                    

Level Of Knowledge: Conceptual

Introduction, Exchange traded markets, OTC markets, Forwards, Mechanics of futures, Mechanics of Options, & Swaps, Foreign currency futures & currency options.

Level Of Knowledge: Application

Interest rate parity, Purchasing power parity, The Fisher effects, Forecasting exchange rates – Efficient market approach, Fundamental approach, Technical approach, Performance of forecasters                                                                                                                                         

Level Of Knowledge: Conceptual

Introduction to Euro markets, Euro currency instruments, Determinants of Euro currency rates, Growth of Euro dollar markets, International bond markets, External commercial borrowings, Euro debts, foreign currency convertible bonds, Advantages of Euro bonds, Performance of Indian Euro issues                                                                                             

Level Of Knowledge: Application

Management of foreign exchange risk, Management of translation Exposure, Management of transaction Exposure, Management of Economic Exposure                                           

Level Of Knowledge: Application

Measuring the Total Return from Foreign Investing, The Benefits of International Equity Investing, International Bond Investing, Optimal International Asset Allocation, Basics of Capital Budgeting, Issues in Foreign Investment, Political Risk Analysis, Growth Options and Project Evaluation.

Level Of Knowledge: Application

The Cost of Equity Capital, The Weighted Cost of Capital for Foreign Projects, The All-Equity Cost of Capital for Foreign Projects, Discount Rates for Foreign Investment, Comparing the Cost of Capital with Developed & Developing countries

Level Of Knowledge: Conceptual

Capital Structure of Multinational Firms and Dividend Policy of the Multinational Firm

Course Description

This course is aimed at providing the basic understanding of marketing of financial services and its structure and regulations. The course also provides an overview of various financial services, their emerging role and its service delivery process.

Course Objective

The course is intended

1. To impart knowledge on marketing aspects of financial services.
2. To introduce students various financial services and operations.
3. To understand functions of merchant bankers and NBFC.
4. To understand the concept and process of securitization.

Marketing- Marketing management- Needs, wants and demand- Value and satisfaction -STP -Marketing Channels- Holistic Marketing- Internal marketing, integrated marketing, relationship marketing and social responsibility marketing- Marketing and customer value- Value delivery process.

Services marketing- Nature of services- 7P’s of services marketing- Categories of services mix- Service quality/attributes- 5 Dimensions of servqual attributes- Customer gaps- Distinctive characteristics of services- Holistic marketing of services- Critical behaviors that cause customers to switch services- Service encounters and its types- Purchase process of services- Role and script theories- Managing service quality- Service quality model by Parasuraman, Zeithaml and Berry

Designing service process- Developing service blueprint- Inventory demand through waiting lines and queuing systems- Psychology waiting time- Developing customer relationships- Customer loyalty- The wheel of loyalty- Customer relationship management- Objectives-CRM strategy- Common Failures- Complaint handling and service recovery- Managing Employees for service orientation - Distribution Strategies for Services –Challenges in Distribution of Services - Personal Selling – Advertising and Sales Promotion in Service Industry- e services – online Consumer Behavior – Self-service technologies 

Service Sector in India: The Growth in Services – Global & Indian Scenarios - Evolution of Financial Services. Nature Scope and Types of Financial Services: fund based and non-fund based financial services. Venture capital: concept and types, regulatory framework How Venture Capitalists Evaluate Potential Venture Opportunities-- Managing Risk and Reward in the Entrepreneurial Venture- New Venture Financing -Risk & Return in venture capital. 

Merchant Banking; Issue Management, SEBI Guidelines, Institutional & Operational Framework- Regulation of Merchant Banking Activities- Obligations of Merchant Bankers- Domestic and External Investment banking- Difference between investment bank and traditional banks- Structure of an investment bank- Functions of Investment Banks - types within the investment banking division- Factoring: concept, types, delivery network, comparison  and contrast with other similar services, Financial and Service charges, Growth and Trend of factoring service in India, Case of SBI factors- Forfeiting:  concepts  and delivery  network,  forfeiting  and  risk  management,  forfeiting  and  export finance, forfeiting in India.

NBFC: Introduction, RBI act framework-asset-liability management system Housing Finance: introductions, housing finance system, Mortgage-based securitization, Guidelines for extending equity support to housing finance companies. Loan Syndication and Consortium Lending. Online banking services; Types of cards – POS Terminals. Insurance: Types – Marketing of Insurance plans – IRDA regulations on marketing of plans.

Lease and Hire purchase: Meaning and Types of leasing – Legislative-frameworks – Matters on

Depreciation and Tax –Hire Purchasing- Concepts and features – Tax and Depreciation implications- Credit rating and Securitization: Definition and meaning- Process of-credit rating of financial instruments- Rating Methodology- Rating agencies –Rating symbols of different companies-Mutual funds, Insurance companies and IPO grading. 

Securitization of debt- Meaning-Features- Special Purpose Vehicle- Pass Through Certificate & mechanism –Benefits of Securitization – Issues in Securitization Stock Broking: introduction, bodies Regulating Stock Broking Firms-Functions of Stock Broking Firms - Services of Depository and functions Stock lending and Borrowing - Mutual fund: Types Mutual Funds – Advantages of mutual funds – Exchange Traded Funds – Hedge funds- Regulations on mutual funds  

Marketing Financial services-Mary Ann Pezzullo

Course Description:

This course familiarizes students with the fixed income market instruments, valuations, market operations and treasury management practices in India. Also to provide insight about the relationship of the Risk and Return, Measuring risk, bringing returns according to the expectations of the investors in the debt market and use of fixed income securities in treasury management of institutions.                                       

Course Objectives

1. To familiarize students with the bond market instruments, valuations, market operations
2. To provide insight about the relationship of the Risk and Return, Measuring risk, bringing returns according to the expectations of the investors in the bond market and use of bond securities in treasury management of institutions.
3. To apply bond portfolio management techniques using advanced tools.

2.      Understand the Government securities and Corporate Debt Market in India.

3.      Compare and contrast the different debt product from risk and return perspective.

4.      Apply valuation models and Risk Identification techniques in Bonds.

5.      Evaluate the global market conditions and investment patterns in debt markets.

Level of knowledge: Conceptual

Features - types – Debt market in India - Institutional Arrangements - Market Participants and Instruments - Investors Perspectives - Risk and Rewards  - Current trends in Indian Debt market

Level of knowledge: Conceptual

Central Government Securities: Bonds - Introduction, Developments Expected, G-Secs: Trends in Volumes, Tenor and Yields, Primary Issuance Process, Participants in Government Bond Markets, Constituent SGL Accounts, Primary Dealers, Satellite Dealers, Secondary Markets for Government Bonds, Settlement of Trades in G-Secs, Clearing Corporation, Negotiated Dealing System, Liquidity Adjustment Facility (LAF). Central Government Securities: Treasury Bill - Issuance Process, Cut-Off Yields, Investors in T-Bills, Secondary Market Activity in T-bills. State Government Bonds - Gross Fiscal Deficit of State Governments and its financing, Volume and Coupon rates on State Government Bonds, Ownership Pattern of State Government Bonds, and State Government Guaranteed Bonds.

Level of knowledge: Conceptual

Market Segments, Issue Process, Issue Management and Book Building, Terms of a debenture issue, Credit Rating.

Level of knowledge: Application

I-Bex : Sovereign Bond Index, NSE – MIBOR - Trading Mechanism in the NSE-WDM - Description of the NSE WDM, Order Types and Conditions, Market Phases and Starting Up, Trading Mechanism, Order Entry in Negotiated Trades Market, Order Validation, Order Matching, Trade Management, Reports, Settlement, Rates of Brokerage -  1.       

Level of knowledge: Application

Time Value of Money – Bond Valuation - Present Value – Future value – Bootstrapping -  Interpolation - Price and Yield Conventions - Credit rating system.

Level of knowledge: Application

Risk factors – Duration - Modified Duration and Convexity - Macaulay duration and Convexity, Basis Point Value (BPV), Bond Immunization Strategies – Bond price theorems – Malkiel bond theorems - Yield Curve Analysis - Par Value, Zero, Spot Curve - Term Structure of Interest Rates - Constructing Yield Curve Bootstrapping - Yield curve and yield curve theories – basic Econometric forecasting of the yield curve

Level of knowledge: Application

Fixed Income Derivative Markets - FRAs, Swaps, Futures, Options Global Fixed Income Securities Markets Indexing, Securitization, Constructing the bond portfolio - Passive and active bond portfolio management - Market timing strategies - Timing bets on interest rate level -  Timing bets on specific changes in the yield curve - Bullet, barbell, ladder and Butterfly strategies.

Level of knowledge: Conceptual

Public Debt Act, 1944, SEBI (Guidelines for Disclosure and Investor Protection), 2000, Market Practices and Procedures

Level of knowledge: Application

Yield Curve: The Simple Approach, Bootstrapping, Alternate Methodologies to Estimate the Yield Curve, Theories of the Term Structure of Interest Rates

Level of knowledge: Conceptual

What are Fixed Income Derivatives, Mechanism of Forward Rate Agreements, Interest Rate Futures, Interest Rate Swaps.

Course description

In the current scenario, investing in the stock markets poses a significant challenge even for seasoned professionals. This course is an introduction to quantitative trading strategies based on various statistical methods. Topics include methodologies related to statistical arbitrage, factor investing, trend following, momentum, technical trading and order book dynamics. Emphasis is on developing and empirically evaluating the algorithmic trading strategies based on statistical/mathematical models.

Course Objectives

1.      To make students learn how to use statistical/mathematical tools in developing sound trading strategies

2.      To make students learn how to backtest and develop a trading strategy

3.      To make students learn how to use statistical methods to test the significance of trading strategy results 

4.      To enable students how to use R & Python in algorithmic trading

5.      To equip students with popular systematic trading strategies

2.      Do the back testing of the strategies

3.      Use statistical methods to test the results of trading strategies

4.      Use R & Python in algorithmic trading

5.      Familiar and experienced with popular systematic trading strategies

Level of Knowledge: Conceptual

Overview of financial markets and instruments, Shorting, margins and leverage, Stylized facts on asset returns

Level of Knowledge: Conceptual

Evolution of Algorithmic Trading, Meaning of algorithmic trading, Different Trading Methodologies, Trends in Algorithmic Trading: Global and India, Benefits of Algorithmic Trading

Level of Knowledge: Analytical

Programming basics, obtaining financial data with Rand Python, Strategy Design, Back testing

Level of Knowledge: Analytical

Fundamental Analysis using Ratio Calculations, Peer Group Comparison, Stock Selection Strategy based on Decision Trees, DCF Valuation and Sensitivity analysis, Bond Pricing along with duration and convexity, FX & Interest Rate Derivatives like Interest Rate Futures, Swaps, and Currency Options.

Level of Knowledge: Analytical

Technical Trading (Using Python) ,Basics of Technical Analysis : Chart Types, Chart Patterns, Gap Theory, Candle Pattern, Technical Indicators ,Designing of Strategy Builder using Technical Indicators & Price Theory ,Designing of Back-Testing platform to achieve strategy optimization ,Real-time API Connectivity by handling Broadcast, OMS & RMS ,Real-time Database upgrade & Data wrangling ,Comprehensive LIVE Strategy Engine

Level of Knowledge: Analytical

Order Types, Order Book Dynamics, Transaction costs, market making, High Frequency Trading

Level of Knowledge: Analytical

Breakout Strategies: Bollinger Bands, Donchian Channels, New Highs, MACD Strategies, RSI Strategies

2.      Ernie Chan: Algorithmic Trading: Winning Strategies and Their Rationale (Wiley, 2013)

3.      Ernie Chan: Quantitative Trading: How to Build Your Own Algorithmic Trading Business (Wiley, 2008)

Course Description

The entrepreneurial startup community is aggressively developing new "Fintech" applications which are dramatically changing the way financial services and products are delivered, especially to Millennial. There are now more than 200 Fintech companies valued at over $1 billion each, the so-called "Unicorns," and global investors pour tens of billions of dollars more into new startups each year. There are stories about new financial applications in the press every day. Some commentators foresee a revolution in finance, where there will be no need for brick and mortar branches, investment counselors, or even physical money itself.  This course will provide students with exposure to new Fintech services within a critical context and framework analyzing traditional money, banking and financial markets combined with interdisciplinary content from Computer Science and Entrepreneurship.

Course Objectives

1. To engage the student in observation, analysis and critical reflection of economic processes, institutions and innovations, using assigned readings, current events, current press and periodicals, other references, cases and class discussions
2. To master key concepts in financial products and services and the regulation thereof
3. To gain a basic knowledge of current and prospective technology as it relates to financial products and services
4. To improve research, writing, discussion and presentation skills
5. To improve knowledge of current and future issues in cutting edge developments in banking, financial markets and entrepreneurial fields

Level of Knowledge: Conceptual

Disruption and Disintermediation in Financial Products and Services- Millennial, Technology, Entrepreneurial culture and availability of finance - History and purposes of money – FinTech evolution: Infrastructure, Bank, start ups and emerging markets – FinTech Typology - Fintech Companies: Paytm, Google Pay, Apple Pay, Mpesa, Square and stripe – FinTech Regulation FinTech in global setting

Level of Knowledge: Conceptual

Individual Payments - Growth of Non-cash payments and mobile money – RTGS system - Crypto currencies - Legal and Regulatory Implications of Crypto-currencies – Crypto-currencies in India – Initial Coin Offer (ICO) - Introduction to Block Chain

Level of Knowledge: Conceptual and Analytical

History of Financial innovation – Digitization of financial services – FinTech and Funds – Alternative Finance – FinTech based alternative finance – growth – regulation – Types – Crowd Funding (Charity, Regards and Equity), P2P and market lending, Lines of Credit, SME loans, Invoice factoring and Equipment financing – alternative finance and inclusive growth – Rise of Indian FinTech Companies in alternative finance – Comparison with Chinese and other Nation’s FinTech in alternative finance

Level of Knowledge: Conceptual and Analytical

FinTech Regulations – Evolution of RegTech – RegTech Ecosystem – Financial institutions and start ups – Challenges – Regulators – Regulatory sandboxes

Level of Knowledge: Conceptual and Analytical

Data in financial services – History of data regulation – Digital identity – KYC to KYD – Application of data analytics in finance – methods of data protection – Challenges of data regulation

Level of Knowledge: Analytical

Case Study 1: Revolut

Case Study 2: Alibaba

Case Study 3: Aadhaar

Case Study 4: Credit Karma

Case Study 5: Digibank

FinTech Big Trends at present

Course description:

Tax planning involves conceiving of and implementing various strategies in order to minimize the amount of taxes paid for a given period. For a small business, minimizing the tax liability can provide more money for expenses, investment, or growth. In this way, tax planning can be a source of working capital. This course aims at making students conversant with the concept of Individual (Resident and NRI) and Corporate Tax planning, at an advanced level. It will discuss the commonly used tax avoidance devices and the related anti-avoidance rules and practices. The Tax data analytics interface, helps in understanding the use of vast tax data available and its analysis in predictions and policy decision making.

Course Objectives

1.      To enable students, understand the provisions of various Corporate tax laws in India, their computation and planning.

2.      To plan and make tax arrangements for Resident ad non-resident Individual and Corporate assesses.

3.      To familiarize with the essential rules of taxation procedures.

4.      To make students aware of importance of tax planning while making business decisions.

5.      To impart knowledge pertaining to GAAR, Transfer pricing and Advance rulings.

6.      To familiarize with Corporate Tax data analytics and policy decision making using the same.

1.      Comprehend with major provisions of various Corporate taxation laws including computation and planning.

2.      Appreciate and apply advanced aspects of Income tax laws in Tax planning for Individual and corporate assesses.

3.      Comply with the procedures of taxation in India.

4.      Identify tax planning opportunities and integrate appropriate tax Strategies in corporate and personal business planning decisions.

5.      Gain knowledge related to GAAR, Transfer pricing and Advance rulings.

6.      Champion in the use of Corporate Tax data analytics to make meaningful interpretations.

Level of Knowledge: Conceptual

Concept of tax planning, Tax avoidance and tax evasions, Corporate tax in India - Types of companies - Residential status of companies and tax incidence,Tax liability and computation of taxation of companies- minimum alternate tax.

Level of Knowledge: Application

Tax planning with reference to Location, Nature and Form of organization for new business.

Level of Knowledge: Application

Tax planning relating to capital structure decision, Dividend policy Inter – corporate dividends and bonus shares.

Level of Knowledge: Application

Tax planning in respects of own or lease, Sale of assets used for scientific research, Make or Buy decisions; Repair, replace, renewal, or renovation, and Shutdown or Continue decisions. Tax planning with reference to employee’s remuneration - Tax planning with reference to receipt of insurance compensation - distribution of assets at the time of liquidation - Deferred tax assets - Deferred tax liabilities

Level of Knowledge: Conceptual

Basic Concepts of International Taxation -Residency Issues; Source of Income; Tax Havens; Withholding Tax, Unilateral Relief and Double Taxation - Avoidance Agreements, Controlled Foreign Corporation, Advance Rulings and Tax Planning, Authority for Advance Rulings, Special provisions relating to non-residents - Double taxation relief - Provisions regulating Transfer pricing - Advance rulings for non-residents.

Level of Knowledge: Application

Tax planning with reference to amalgamation - Demerger - Slump sale - Conversion of sole proprietary concern/partnership firm into company - Transfer of assets between holding and subsidiary companies

Level of Knowledge: Conceptual

Tax deductions and collection at source, Advance payment of tax - Interest Payable by/to Assesses - Collection and Recovery of Tax - Return of Income - Procedure of Assessment- Appeals and Revision - Penalties and Prosecutions - Search, Seizure & Survey and Special - Procedure for Assessment of Search Cases

Level of Knowledge: Application

Areas of Corporate Tax data analytics, Introduction to tax data analytics of corporate assesses, advance tax paid, taxes and profits –both direct and indirect taxes using MS Excel based visualization and predictive analysis tools.( data source: http://www.mospi.gov.in/statistical-year-book-india/2017/175: Ministry of Statistics and Program Implementation and https://www.incometaxindia.gov.in/Pages/Direct-Taxes-Data.aspx)

Course description:

The course aims to make the participants understand the basics of financial markets like money, capital, foreign exchange and derivatives markets as a perquisite to understand various treasury functions and the associated aspects that contribute to protecting or enhancing shareholder value, reducing risk or securing the organizations cash flow.  It also wishes to make the participant understand the importance of appropriate treasury systems and controls.  In addition to it the course also wishes to make the participants aware of the modern tools to manage risks with specific focus on derivative.

Course Objectives:

1. To know the basics of money market, capital market, forex market and derivatives market.
2. To understand the basics of treasury management including domestic cash management, medium and long term funding and liquidity management
3. To understand the risk involved in banking operations.
4. To understand basics of Assets Liability Management
5. To know techniques of hedging the risk.

Introduction to the Money Market and Capital Market: Intermediaries- Function-Definition-Classification of Intermediaries -Types of markets-Participants-Nature of domestic Market -Classification and Analysis of Primary Instruments -Indirect Instruments -Repurchase Agreements -Types of Interest Rate Quotations - Capital Markets: Function-Classification of Instruments-by Issuer and Types-Settlements Procedures-Principles of Valuation-Developments in the Capital Markets

Introduction-Definitions-Direct and Indirect Quotations: Cross Rates, Factors affecting Exchange Rates, Role of Banks in the Market-Spot Operations-Transfer Methods-Relationship with Market Operations-Financing Spot-Operations-Interest Arbitrage-Forward-Forward Business- Forward Transactions-Factors affecting/influencing forward rates- Premiums: Discounts, Forward Cross Rates-Swap Transactions-Outright Deals- Dealer Operations-Derivatives Markets

Scope and Function of Treasury Management: Objectives of Treasury-Structure and Organisation-Responsibilities of Treasury Manager-Function of treasury – Centralised vs Decentralised. Domestic Cash Management-Short Term/Medium Term Funding – Meaning and Importance of Cash Management-Objectives of Cash Management-Cash Flow Cycle-Cash Flow Budgeting and Forecasting-Electronic Cash Management- Medium term and Long term Funding: FDs/NCDs/Term Loans-Securitisation.  Cost Centre / Profit Centre: Financial Planning and Control-Capital Budgeting-Risk Analysis- Liquidity Management: Objectives -Sources of Liquidity-Maturity Concerns: Projected Cash Flow and Core Sources-Contingency Plans-Short term and Long term Liquidity-Maturity Ladder Limits-Internal Control – The Need and Importance – Financial and Operational risks –Internal vs External Control Segregation of Duties among Front and Back Offices – Management-Information – Netting.

Introduction: Meaning of Risk in Banking Operations- Financial and Non-Financial Risks-Risk Process-Key Risks in Relation to Treasury Management – Interest Rate Risk, Currency Risk, Liquidity Risk, Credit Risk and-Operational Risk-Relationship with other Financial Risks- Measurement and Control of Risk: Identifying Measures and Controlling Risk – Statistical Methods-Risk Exposure Analysis-Risk Management Policies-Risk Immunization Strategies, Fixation and Delegation of Limits- Different Limits- Open Position / Asset Position Limits/ Deal Size/Individual Dealers/Stop Loss Limits.

Components of Assets and Liabilities – History of AL Management- Organizational and Functions of ALCO- Management and Interest rate Exposure/Liquidity-Risk Adjusted Return on Capital-Capital Adequacy Concerns-ALCO Techniques – GAP Analysis, Simulation, Duration, Analysis and Linear and other mathematical methods.

Forward, Futures and Options Market-Mechanics of Futures-Cash and Futures Market-Foreign Currency Futures Market-Options Market- Options Strategies- Hedging Strategies and Arbitrage-Call Options and Put Options, Swaps – introduction, types of swalps – currency swaps, interest rate swaps and cross currency swaps, practical problems.

Treasury Management (CAIIB 2010), Macmillan Education, India

1. Ross, D,, International Treasury Management’3rd edition, Euromoney Publications, London, 1987.
2. Smithson, C.W., ‘Managing Financial Risk: A Guide to Derivative Products’ 3rd edition, McGraw- Hill, New York, 1998.
3. Risk Books, ‘Financial Risk and the Corporate Treasury : New Developments in Strategy and Control’ Latest Edition, Risks Books, 1997.
4. Cuthbertson, K. And D. Nitzsche, ‘Financial Engineering : Derivatives and Risk Management’ Latest Edition, John Wiley, Chichester, 2001.
5. Shapiro, A.C., ‘Multinational Financial Management’, 8th Edition, John Wiley & Sons, London, 2006.
6. Saunders. A., ‘Financial Institutions Management: A Modern Perspective’ 3rd Ediition, Irwin McGraw-Hill, Boston, 2006.
7. Maness, Terry S. and John T. Zietlow, Short-Term Financial Management’, 2nd Edition, South- western Thomson College Publishing 2002.
8. Higgins, David P, ‘Essentials of Treasury Management’, 2nd Edition, Association for Financial Professionals, www.AFPonline.org, 2007.
9. Dhandapani, Alagiri, ‘Treasury Management: Trends and Developments’, Latest Edition, ICFAI University Press, October 2008.
10. Hull, J., ‘Options, Futures and Other Derivatives’, 6th edition, Upper Saddle River, N. J., Prentice Hall, 2006.
11. Chance, D., ‘An Introduction to Derivatives’, 5th Edition, Harcourt, 2001 12. Dubofsky, David A, Thomas Miller, ‘Derivatives: Valuation and Risk Management’, Latest Edition, Oxford University Press, 2007.

Course Description

Recent years have witnessed major developments in the field of finance and accounting. Accounting standards are being strengthened and brought in line with international standards. The advent of IFRS and green accounting are landmark steps in that direction. Further, the field of finance has witnessed radical developments in the global scale in the form of microcredit, microfinance, financial inclusion, rural fiancé, value chain finance, Islamic finance etc. It is essential to understand such new contemporary developments in finance.

Course objective: 

The course aims to inculcate conceptual frameworks of contemporary finance trends and to instill application level knowledge in the minds of students about contemporary finance trends. The specific objectives of the course is

1.       To underline the importance of micro credit and examine the role of micro finance institutions in poverty alleviation

2.       To analyze   Government initiatives for inclusive growth and draw comparative analysis of Government initiatives with select developed economies.

3.       To elaborate issues relating to start ups in India growth of financial Technology and payment mechanisms

4.       To evaluate Islamic banking Model in the global financial markets

At the end of the course students will be able to

1.       Outline the need for micro credit and micro finance institutions in poverty alleviation

2.       Demonstrate the role of government  initiatives in comparison with advanced economies

3.       Elaborate the role of start-ups and financial technology for faster distributive  economic development

4.       Diagnose and justify  the Islamic banking model in the global financial markets

Microfinance – Meaning, definition and conceptual framework and its history– Models of microfinance – Microcredit Vs Micro-savings Vs Microfinance – Microfinance institutions (MFI) Development of microfinance in India – GOI, RBI and NABARD initiatives for development of microfinance in India – Innovative microfinance models in India – Issues faced by microfinance in India – case study of SKS MFI and Grameen Bank

Y.H. Malegam committee report on Microfinance – Microfinance and poverty – Microfinance and economic development – microfinance and rural development – microfinance and women empowerment – Microfinance and informal finance sector – Microfinance and small business development. Financial inclusion - Rangarajan Committee on financial inclusion – initiatives of GOI and RBI towards financial inclusion - Prime Minister’s Jan-Dhan scheme of financial inclusion and measurement of financial inclusion - Financial inclusion and SME finance

Small Finance Banks – Operating guidelines of Reserve Bank of India for small finance banks – Small finance banks and financial inclusion – History and list of small finance banks –functions of small finance banks – Business model of small finance banks. Payment banks - Operating guidelines of Reserve Bank of India for payment banks –Payment banks and financial inclusion – History and list of payment banks – functions of payment banks – Business model of payment banks

Pradhan Mantri Mudra Yojana and Pradhan Mantri Kaushal Vikas Yojana – Micro Units Development and Refinancing Agency (MUDRA) – MUDRA Bank – Genesis and role of MUDRA – Functions, roles and responsibilities of MUDRA – Products and services offered by MUDRA – MUDRA card – Role of MUDRA on financial literacy and financial inclusion – The MUDRA pricing – Small and Medium Enterprise (SME) exchange in India - AIM (Alternate Investment Market) in UK - TSX Ventures in Canada - GEM (Growth Enterprise Market) in Hong Kong - MOTHERS (Market of the high-growth and emerging stocks) in Japan - Catalist in Singapore – Chinext in China – Regulations and features of SME exchange in India – Listing in SME exchange in India.

Startups in India –Fund raising norms for startups - SEBI regulations on startup listing and fund raising – Angel funding – Origin of angel funding – SEBI regulations on angel funding – Financial Technology –Fintech companies in India - Prepaid payment mechanism in India – Prepaid payment mechanisms – Smart cards, magnetic stripe cards, internet accounts, online or e-wallets, mobile accounts, mobile wallets and paper vouchers – Types of e-wallets – RBI regulations on prepaid payment mechanism – Growth of prepaid payment mechanism in India.

Value chain financing – rural finance – need for rural finance – Chit fund finance and its regulation in India – Sharadha chit fund case study - Shadow banking

Islamic financing – origin and development – salient features of Islamic finance – Islamic finance in global financial market and Islamic finance in India - Green Accounting in India

The purpose of writing of project is to communicate the findings of the project study undertaken on a particular topic by a student in business organization in a systematic way, in partial fulfillment of MBA program. It is a time-bound and independent study guided by a faculty member.

The purpose of writing of project is to communicate the findings of the project study undertaken on a particular topic by a student in business organization in a systematic way, in partial fulfillment of MBA program. It is a time-bound and independent study guided by a faculty member.

Chapter 1:

Introduction to the topic:

The Introduction chapter should broadly cover the following topics

a)      Introduction to the functional area i.e.,                 Finance/Marketing/Human Resources and the relationship between of  one  functional    area to other functional areas of management.

b)      Importance of the topic/title chosen for study.

c)      Study of the organization with reference to the    the topic.

d)     Review of Literature

Chapter 2:

Industry Profile:

The Industry and Company Profile chapter should broadly cover the following topics

a.       Introduction to Industry/area of business

b.      Total size/annual turn over of the industry

c.       Key players in the industry & their market           share. [Amount of turn over].Annual  Industry Growth Rate Government policies/regulations influencing the industry(with reference to foreign competition           or FDI  limit).

Company profile:

1. A brief history of the company/business        group.
2. Year of establishment. initial  investment, foundersprofile, place(s) of business , nature of initial business(es) of the group , & past business performance
3. Present position of the company/business group in terms of total investment, type/nature of businesses, totalturnover, total number of  employees, productprofile, competitor profile, rate of growth of investment, sales,profits, clients or customers, present product/segment wise market share of the company,subsidiary companies [if any] under the same  management, collaboration/joint ventures [if any],performance of it’s stocks for   the past few years,export earnings[if exporting], and certifications/achievements/awards won[if any] and SWOT analysis.

e)       

Chapter 3: Research Design.