Department of
BUSINESS-AND-MANAGEMENT






Syllabus for
Master of Business Administration (Financial Management)
Academic Year  (2020)

 
3 Semester - 2019 - Batch
Paper Code
Paper
Hours Per
Week
Credits
Marks
MBAF311 FINANCIAL MODELING 4 2 100
MBAF331 STRATEGIC FINANCIAL MANAGEMENT 4 4 100
MBAF332 TAXATION LAW AND PLANNING 4 4 100
MBAF341 SECURITY ANALYSIS AND PORTFOLIO MANAGEMENT 4 4 100
MBAF342 COMMODITY MARKETS AND DERIVATIVES 4 4 100
MBAF343 TECHNOLOGY IN RETAIL BANKING AND INSURANCE 4 4 100
MBAF345 FINANCIAL RISK MANAGEMENT 4 4 100
MBAF361 RISK MODELING AND DECISION MAKING 0 1 50
MBAF381 INTERNSHIP AND VIVA VOCE 0 2 100
4 Semester - 2019 - Batch
Paper Code
Paper
Hours Per
Week
Credits
Marks
MBAF411 FINANCIAL ANALYTICS USING R 4 4 100
MBAF431 INTERNATIONAL FINANCE 4 4 100
MBAF432 MARKETING OF FINANCIAL SERVICES 4 4 100
MBAF441 BOND MARKET OPERATIONS 4 4 100
MBAF442 ALGORITHMIC TRADING AND QUANTITATIVE STRATEGIES 4 4 100
MBAF443 FINANCIAL TECHNOLOGY: FUNDAMENTALS AND APPLICATIONS 4 4 100
MBAF444 CORPORATE TAX PLANNING AND MANAGEMENT 4 4 100
MBAF445 TREASURY AND RISK MANAGEMENT 4 4 100
MBAF446 CONTEMPORARY TRENDS IN FINANCE 4 4 100
MBAF481 PROJECT AND VIVA-VOCE 2 6 150
        

  

Assesment Pattern

Assessment Criteria

 

Components (Indicative)

Marks

Weightage

Final Marks

Continuous Internal Assessment (CIA)- I

Written assignments

Group Task

Company analysis

Industry Review

Review of Literature

Simulation

Role Play

Case Study

20

50%

10

Continuous Internal Assessment (CIA)- II

Mid Term Exam

50

50%

25

Continuous Internal Assessment (CIA)- III

Case Analysis

Problem Solving

Field Work

Micro Presentations

Model Building

Simulation

Discussion forum

Group Discussion

Subject Interviews

20

50%

10

Attendance

 

 

 

5

End Examination

Written (Duration 3 hrs)

100

50%

50

Examination And Assesments

Assessment Criteria

 

Components (Indicative)

Marks

Weightage

Final Marks

Continuous Internal Assessment (CIA)- I

Written assignments

Group Task

Company analysis

Industry Review

Review of Literature

Simulation

Role Play

Case Study

20

50%

10

Continuous Internal Assessment (CIA)- II

Mid Term Exam

50

50%

25

Continuous Internal Assessment (CIA)- III

Case Analysis

Problem Solving

Field Work

Micro Presentations

Model Building

Simulation

Discussion forum

Group Discussion

Subject Interviews

20

50%

10

Attendance

 

 

 

5

End Examination

Written (Duration 3 hrs)

100

50%

50

Department Overview:
Department of Management Studies, is a premier wing of Christ (Deemed to be University), since 1991 with a clearly defined approach for creating quality managers and entrepreneurs required to face the challenges of the corporate sector. The department offers undergraduate courses in Business and Administration and Masters Programme in Management and Finance which are challenging and specifically designed to develop and enhance career opportunities and to contribute in the dissemination of academic and applied knowledge in business management.
Mission Statement:
Vision Excellence and Service Mission Statement ?To maintain a high quality, intellectually stimulating, open and realistic educational environment for institutional success by developing effective leaders, creating high performance teams and to bring out the potentials in individuals?.
Introduction to Program:
CHRIST (Deemed to be University) is pleased to announce an innovative post-graduate program in Finance Management offered by the Department of Management studies. The program is intended to support students who wish to pursue a professional career in the area of finance. There is a need of manpower to competently handle financial management and investment functions of the industry. Due to dearth of qualified personnel, the industry, quite often depend on inexperienced professionals. MBA (FM) course is designed to cater to the need of the industry by supplying manpower with super specialization in the area finance. Master of Business Administration (Finance Management) is a two-year (4 Semesters) program, specializing on various aspects of finance, including financial analysis and control. It also lays emphasis on relevant areas of Accounting, Taxation, Strategic finance, Capital markets and Investment. The program involves theoretical and case study modules and an internship of 45-60 days in financial analysis and financial management. The program is designed to meet the global demand for financial engineers who can understand sophisticated new financial products, model their cash-flows, price them accurately, using rigorous mathematical and computational tools, and trade and manage the risk arising from such products. The demand stems from a wide spectrum of financial functions: accounting and taxation, investment banking, securities & commodities trading, financial modelin
Program Objective:
Programme Specific objectives: This course imparts a broad outlook of finance management, enriching the participants and encouraging them to think beyond their limits and identify out-of-the-box solutions to the challenges of financial world. The programme focuses on creating socially responsible financial management leaders of tomorrow and support students who wish to pursue a professional career in the area of finance. Specific objectives of the course is ? To impart high quality professional financial management education to the management students. ? To demonstrate an overall development of students with conceptual, analytical and decision making skills. ? To enable students to apply technology and data driven research based skills in financial sector and take up challenging financial positions in the 21st century. ? To develop young minds to apply and evaluate new financial product developments, client management and financial models with a positive mental attitude in the field of finance. ? To create more socially responsible mindset among students to cater to the needs of all sections of the society and develop independent thinking to handle challenging situations in finance discipline.

MBAF311 - FINANCIAL MODELING (2019 Batch)

Total Teaching Hours for Semester:60
No of Lecture Hours/Week:4
Max Marks:100
Credits:2

Course Objectives/Course Description

 

 

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

Learning Outcome

After the completion of this course, the students should be able to have understanding of the

  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. 

Unit-1
Teaching Hours:10
Excel Proficiency
 

 

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)

 

Unit-2
Teaching Hours:12
Financial Modeling using Excel
 

 

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

 

Unit-3
Teaching Hours:8
Valuation Modeling
 

 

 

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

 

Unit-4
Teaching Hours:6
Merger & Acquisition (M&A) Analysis
 

 

 

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

 

Unit-5
Teaching Hours:8
Project Finance Modeling
 

 

 

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

 

Unit-6
Teaching Hours:10
Equity Research Modeling
 

 

 

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

 

Unit-7
Teaching Hours:6
Cash Flow Statement Projection
 

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

Text Books And Reference Books:

Mastering Financial Modeling in Excel – ALSTAIR L DAY (Pearson Publications)

Essential Reading / Recommended Reading

 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

Evaluation Pattern

Details

CIA

Submission Date

CIA - I

Developing a financial model (Loan amortization schedule, Retirement Planning Schedule) etc using Time value of money concept.

 30/06/ 2020

CIA - II

Forecasting Balance Sheet and Income Statement

20 /07/2020

CIA - III

Developing a model for firm/business valuation using DCF method 

 09 /08/2020

CIA - IV

Developing  Franchise Model

30/08/ 2020

CIA – V

Quiz

 08 /09/ 2020

 

 

CIA

Mode/

Total Marks

Weightage

Form of Submission

Starting date

Submission date

CIA 1

Moodle

15

15%

Excel File

15/06/2020

 30/06/ 2020

CIA 2

Moodle

30

30%

Excel File

01/07/2020

20 /07/2020

CIA 3

Moodle

25

25%

Excel File

20/07/2020

 09 /08/2020

CIA 4

Moodle

15

15%

Excel File

10/8/2020

30/08/ 2020

CIA 5

Moodle

15

15%

Excel File

30/08/2020

 08 /09/ 2020

 

MBAF331 - STRATEGIC FINANCIAL MANAGEMENT (2019 Batch)

Total Teaching Hours for Semester:60
No of Lecture Hours/Week:4
Max Marks:100
Credits:4

Course Objectives/Course Description

 

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 21st 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. 

Learning Outcome

§  Evaluate the role of financial management in achieving the strategic objectives of a firm

§  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

Unit-1
Teaching Hours:5
Financial Policy and Corporate Strategy
 

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.

Unit-2
Teaching Hours:10
Corporate Asset Financing
 

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

Unit-3
Teaching Hours:6
Financial Decisions
 

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

Unit-4
Teaching Hours:12
Corporate Valuation
 

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

Unit-5
Teaching Hours:12
Value Based Management
 

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

Unit-6
Teaching Hours:15
Other Related Areas
 

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 

Text Books And Reference Books:

G.P Jakhotiya (2007), strategic financial management, New Delhi. Vikas publishing house

Essential Reading / Recommended Reading
  1. Allen, David, (2007) "An introduction to strategic financial management : the key to long term profitability", London : Kogan Page,
  2. Chandra, Prasanna (2010). Financial Management – VIIth Edition, New Delhi, Tata McGraw – Hill Publishing Company Ltd.
  3. Mattoo, P.K. (2006), Corporate Restructuring, an Indian Perspective. New Delhi MacMillan India Pvt. Ltd
  4. Samuel C. Weaver, John Fred Weston (2008). Strategic financial management: applications of corporate finance. Cengage Learning,
Evaluation Pattern

CIA 1: 20 Marks

CIA 2: 50 Marks

CIA 3: 20 Marks

End Semester Examination: 100 Marks

MBAF332 - TAXATION LAW AND PLANNING (2019 Batch)

Total Teaching Hours for Semester:60
No of Lecture Hours/Week:4
Max Marks:100
Credits:4

Course Objectives/Course Description

 

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.

Learning Outcome

Course Outcome:

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.

Unit-1
Teaching Hours:4
UNIT 1: Introduction to Taxation
 

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.

Unit-2
Teaching Hours:4
UNIT 2: Residential Status and Incidence of Tax
 

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.

Unit-3
Teaching Hours:14
UNIT 3: Computation of Income:
 

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.

Unit-4
Teaching Hours:10
UNIT 4: Clubbing of Income, Set offs, Deductions and Procedures of tax
 

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.

Unit-5
Teaching Hours:10
UNIT 5: Tax planning
 

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.

Unit-6
Teaching Hours:12
UNIT 6: GST and Customs
 

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.

Unit-7
Teaching Hours:2
UNIT 7: Economics of Taxation
 

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.

Unit-8
Teaching Hours:4
UNIT 8: Introduction to Tax Analytics
 

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).

Text Books And Reference Books:

References:

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.

Essential Reading / Recommended Reading

Essential Reading:

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

Evaluation Pattern

 

Components (Indicative)

Marks

Weightage

Final Marks

Continuous Internal Assessment (CIA)- I

Written assignments

Group Task

Company analysis

Industry Review

Review of Literature

Simulation

Role Play

Case Study

20

50%

10

Continuous Internal Assessment (CIA)- II

Mid Term Exam

50

50%

25

Continuous Internal Assessment (CIA)- III

Case Analysis

Problem Solving

Field Work

Micro Presentations

Model Building

Simulation

Discussion forum

Group Discussion

Subject Interviews

20

50%

10

Attendance

 

 

 

5

End Examination

Written (Duration 3 hrs)

100

50%

50

MBAF341 - SECURITY ANALYSIS AND PORTFOLIO MANAGEMENT (2019 Batch)

Total Teaching Hours for Semester:60
No of Lecture Hours/Week:4
Max Marks:100
Credits:4

Course Objectives/Course Description

 

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.

 

Learning Outcome

  1. To know the different investment policies and the various factors influencing investment decision of Indian financial system.
  2. To provide insight about the risk and return relationship between various types of investors like Arbitrator, Speculator and Gambler.
  3. To acquire knowledge on various investment alternatives like shares, debentures and real estate with different risk and return analysis.
  4. To analyze the various techniques followed by the investors in forecasting the behavior of the Indian market and their major influence with macro economic variables.
  5. To explore sound theoretical knowledge on Capital Asset Pricing Theory (CAPM) & Arbitrage Pricing Theory (APT).

 

Unit-1
Teaching Hours:6
Nature & Scope of Investments
 

 

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.

 

Unit-2
Teaching Hours:10
Investment Alternatives
 

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.

 

 

Unit-3
Teaching Hours:10
Financial Markets in India
 

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.

Unit-4
Teaching Hours:9
Risk & Types of Investment Analysis
 

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-5
Teaching Hours:10
Stock Return Valuation
 

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-6
Teaching Hours:10
Portfolio Management
 

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

Text Books And Reference Books:

  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.
Essential Reading / Recommended Reading

  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.
Evaluation Pattern

 

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.

MBAF342 - COMMODITY MARKETS AND DERIVATIVES (2019 Batch)

Total Teaching Hours for Semester:60
No of Lecture Hours/Week:4
Max Marks:100
Credits:4

Course Objectives/Course Description

 

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.

 

Learning Outcome

  1. Understand difference risk management tools
  2. Valuation of Futures and Options
  3. Commodity market operations and trading plat form
  4. Use of derivatives tools for corporate risk management

Unit-1
Teaching Hours:8
Introduction to Derivatives
 

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

Unit-2
Teaching Hours:12
Risk Management using Derivatives
 

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)

Unit-3
Teaching Hours:10
Commodity Derivatives
 

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

Unit-4
Teaching Hours:6
Pricing commodity derivatives
 

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.        

Unit-5
Teaching Hours:6
The MCX platform
 

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.

Unit-6
Teaching Hours:5
Currency Derivatives
 

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

Unit-7
Teaching Hours:8
Clearing, Settlement and Risk Management
 

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

Unit-8
Teaching Hours:5
Regulatory Framework
 

Level of Knowledge: Conceptual

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

Text Books And Reference Books:

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

Essential Reading / Recommended Reading

1.      Jayanth Rama Varma (2011). Derivatives and Risk management. New Delhi. Tata Mc Graw Hill

2.      Hull, John C., “Options, Futures and Other Derivatives”, 6th 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” 7th edition, Himalaya Publication.

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

 

Evaluation Pattern
Assessment Criteria
  Components (Indicative) Marks Weightage Final Marks
Continuous Internal Assessment (CIA)- I Written assignments 20 50% 10
Group Task
Company analysis
Industry Review
Review of Literature
Simulation
Role Play
Case Study
Continuous Internal Assessment (CIA)- II Mid Term Exam 50 50% 25
Continuous Internal Assessment (CIA)- III Case Analysis 20 50% 10
Problem Solving
Field Work
Micro Presentations
Model Building
Simulation
Discussion forum
Group Discussion
Subject Interviews
Attendance       5
End Examination Written (Duration 3 hrs) 100 50% 50

MBAF343 - TECHNOLOGY IN RETAIL BANKING AND INSURANCE (2019 Batch)

Total Teaching Hours for Semester:60
No of Lecture Hours/Week:4
Max Marks:100
Credits:4

Course Objectives/Course Description

 

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.

Learning Outcome

  1. Familiarize with the scenario of banking and Insurance business
  2. Create awareness and develop an understanding about the best practices in banking and Insurance Business.
  3. Apply the knowledge and skills required to take up challenges and exploit opportunities in banking and insurance sector.
  4. Critically evaluate the role of technology in banking and insurance sector in India.

Unit-1
Teaching Hours:10
Retail V/s Wholesale banking
 

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

Unit-2
Teaching Hours:10
Compliance in banks:
 

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

Unit-3
Teaching Hours:8
Cyber Security and Banking:
 

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.

Unit-4
Teaching Hours:8
Insurance Sector
 

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

Unit-5
Teaching Hours:12
Life and General Insurance
 

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.

Unit-6
Teaching Hours:12
Technology in Banking and 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.

Text Books And Reference Books:

Principles and Practices of Banking and Insurance by V. S. Gopal and Sumati Gopal

Essential Reading / Recommended Reading

1.      Dr Neelam C Gulati (2011).Principles of Risk Management and Insurance. New Delhi Excel Publishing

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)

Evaluation Pattern
Assessment Criteria
  Components (Indicative) Marks Weightage Final Marks
Continuous Internal Assessment (CIA)- I Written assignments 20 50% 10
Group Task
Company analysis
Industry Review
Review of Literature
Simulation
Role Play
Case Study
Continuous Internal Assessment (CIA)- II Mid Term Exam 50 50% 25
Continuous Internal Assessment (CIA)- III Case Analysis 20 50% 10
Problem Solving
Field Work
Micro Presentations
Model Building
Simulation
Discussion forum
Group Discussion
Subject Interviews
Attendance       5
End Examination Written (Duration 3 hrs) 100 50% 50

MBAF345 - FINANCIAL RISK MANAGEMENT (2019 Batch)

Total Teaching Hours for Semester:60
No of Lecture Hours/Week:4
Max Marks:100
Credits:4

Course Objectives/Course Description

 

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.

Learning Outcome

At the end of the course students are able,

  1. To understand the financial risk management framework of companies.
  2. To compare and contrast different risk management techniques used in stock exchanges
  3. To measure the Financial Risks using advanced tools.
  4. To analyse the different risk management techniques using derivative tools for decision making.

Unit-1
Teaching Hours:4
Financial Risk
 

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).

Unit-2
Teaching Hours:10
Market Data Analysis
 

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.

Unit-3
Teaching Hours:8
Financial Risk 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.

Unit-4
Teaching Hours:10
Measuring risk using Value-at-Risk
 

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

Unit-5
Teaching Hours:10
Credit Risk
 

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.

Unit-6
Teaching Hours:12
Futures and Forwards
 

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.

Unit-7
Teaching Hours:6
Case Discussions