Syllabus for
Bachelor of Commerce (International Finance)
Academic Year  (2020)

DPS over the years has received informal requests to introduce higher level programs that will support specialized fields of study like accounting as per US GAAP and IFRS, international auditing, international taxation, international finance, investment management, etc. The opportunities available specifically to professionals with knowledge of international standards and possessing international qualifications remain vacant due to lack of availability of qualified personnel and, through the proposed programme of B.Com (International Finance) overlapping with CPA (US) and CFA (US) qualifications, such vacancies could be effectively tapped. Global accounting and finance firms and multi-national corporations are keen to absorb students with the proposed qualification. B.Com(International Finance) with specialization in international accounting, auditing and finance is proposed with a view to create talents of competency to handle theory and practice of the subject which will be immense value to accounting firms and large business undertakings with substantial global exposure and also for pursuit of higher education. The Course is finalized with reference to the: (i) CSO (Content Specification Outline) of the Uniform CPA (Certified Public Accountant) Examinations conducted by the AICPA (American Institute of Certified Public Accountants), US. (ii) CBOK (Candidate Body of Knowledge) for the CFA (Chartered Financial Analyst) Level 1 exams conducted by the CFA Institute, US)

Programme Outcome/Programme Learning Goals/Programme Learning Outcome:

PO 2: Provide independent and objective opinion in respect of the true and fair presentation of financial statements.

PO 3: Create value added Investment Portfolio, provide Wealth Planning services, and analyse global financial markets.

PO 4: Apply ethical and corporate governance standards and adhere to the legal, and regulatory framework governing business environment.

PO 5: Explain how organizations and individuals can comply with tax regulations and advise in respect of tax structuring of entities.

PO 6: Demonstrate Professional skills, critical thinking and decision making capabilities for providing effective and efficient services provided

PO 7: Exhibit an entrepreneurial mindset to identify, adapt, and anticipate future market trends and apply risk management techniques.

PO 8: Exhibit digital proficiency required to function effectively in a dynamic business environment

PO 9: Demonstrate leadership traits, communication skills and innovative thinking for optimal performance in personal, professional, societal and environmental domains.

PO 10: Exhibit social sensitivity to embrace diversity and inclusion and promote peaceful co-existence.

PO 11: Demonstrate personality traits like self-awareness and humility, peer-recognition, tolerance and empathy to function effectively in the workplace

Department of Professional Studies follows a rigorous system of continuous evaluation, and the assessment events include quizzes, tests, assignments, mid-term and end-term exams, individual/group project work, presentations etc.  

Students are evaluated for each course on the basis of written examination and continuous internal assessments. Each paper carries maximum of 100 marks and is evaluated as follows:

·         Written Examinations consists of:

§  Mid Semester Exam – 50 Marks   (2 hours duration)

§  End Semester Exam – 100 Marks (3 hours duration)

·         A student should secure a minimum of 40% Marks in the ESE to pass in that paper.

·         In aggregate for each paper, for internal and end semester put together, at least 40 Marks out of 100 must be secured to pass in that paper.

Question Bank:

Subject wise Question Bank is prepared every semester to test the Conceptual, Application, Analytical and Problem-solving skills of the students. These question banks are prepared by the faculty member teaching the subject and duly verified by the subject expert.

Question Paper Pattern for the End Semester Examination:

The question paper pattern for the End Semester Examination is as follows:

§  Section A

Conceptual / Descriptive Type questions 6 out of 8 questions of 2 mark each.

§  Section B

Analytical / Essay type questions with choice – 5 out of 7 questions of 5 marks each

§  Section C

Analytical/ Essay type questions with choice – 3 out of 5 questions of 15 marks each

§  Section D

One Compulsory Question – 18 marks

Students will be able to: explain the main functions of the financial system, describe objectives of market regulation, describe a security market index, compare types of security market indexes, explain factors that affect a market’s efficiency, compare a company’s cost of equity, its (accounting) return on equity, and investors’ required rates of return, describe the elements that should be covered in a thorough company analysis, describe major categories of equity valuation models

The Functions of the Financial System, Assets and Contracts, Financial Intermediaries, Positions, Orders, Primary Security Markets, Secondary Security Market and Contract Market Structures, Well Functioning Financial Systems, Market Regulation

Mid Semester Examination (CIA-2)                                   :           25%

Continuous Internal Assessments (CIA- 1 & 3)               :           20%

Attendance                                                                               :           05%

Total                                                   :          100%

This course also examines the fundamental elements underlying bond returns and risks with a specific focus on interest rate and credit risk. Duration, convexity, and other key measures for assessing a bond’s sensitivity to interest rate risk are introduced. An explanation of credit risk and the use of credit analysis for risky bonds is also included. 

1.     Describe basic features of a fixed- income security

2.     Describe how legal, regulatory, and tax considerations affect the issuance and trading of fixed- income securities

1.  Describe classifications of global fixed- income markets;
2.  Compare, calculate, and interpret yield spread measures.
3.  Describe characteristics and risks of commercial mortgage- backed securities;
4. Explain how a bond’s maturity, coupon, and yield level affect its interest rate risk;
5. Explain the four Cs (Capacity, Collateral, Covenants, and Character) of traditional credit analysis;

Mid Semester Examination (CIA-2)                                   :           25%

Continuous Internal Assessments (CIA- 1 & 3)               :           20%

Attendance                                                                               :           05%

Total                                                   :          100%

Mid Semester Examination (CIA-2)                                   :           25%

Continuous Internal Assessments (CIA- 1 & 3)               :           20%

Attendance                                                                               :           05%

Total                                                   :          100%

This course provides students with detailed knowledge of the key international financial reporting standards (IFRSs) and how they are interpreted and applied

The nature and operations of the IASB. Structure of the IFRSF/IASB, Extant standards of the IASB, The framework.

Mid Semester Examination (CIA-2)                                   :           25%

Continuous Internal Assessments (CIA- 1 & 3)               :           20%

Attendance                                                                               :           05%

Total                                                   :          100%

To provide the students with basic insights into the theory, law and practice of modern Banking

Evolution of Modern Banking in India (special reference to the period after 1991); Types of Banks—Commercial Banks, Co-operative Banks, Development Banks, Agricultural Banks, Industrial Banks, Investment Banks, Universal Banks; Indian Banking System—Classification of Banks-National Level specialised financial Institutions-Public Sector Banks (State Bank of India, Nationalised Banks), Private Sector Banks, Foreign Banks, Small Finance Banks, Payment Banks, Regional Rural Banks, NBFCs, Functions of Commercial Banks and NBFCs—Primary Functions, Secondary Functions and Various services, Classification of Banking Activities—Retail Banking, Corporate Banking / Wholesale Banking, Investment Banking,

6.Handbook on Banking Information—N S Toor, Skylark Publications, New Delhi

Mid Semester Examination (CIA-2)                                   :           25%

Continuous Internal Assessments (CIA- 1 & 3)               :           20%

Attendance                                                                               :           05%

Total                                                   :          100%

Cherunilam, Francis (2011) International Business, PHI Learning Pvt Ltd, 5th Edition

Mid Semester Examination (CIA-2)                                   :           25%

Continuous Internal Assessments (CIA- 1 & 3)               :           20%

Attendance                                                                               :           05%

Total                                                   :          100%

To provide an insight to the students into some areas of Bank management with special emphasis on credit management and profitability

1. Bankers’ Handbook on Credit Management—Indian Institute of Banking and Finance

2. Commercial Bank Management—Kanhaiya Singh and Vinay Dutta, Book Centre.

3. Human Resource Management—Indian Institute of Banking and Finance

4. Banking Profitability and Performance Management—www.pwc.com

1. Advanced Bank Management—Indian Institute of Banking and Finance

2. Indian Institute of Banking and Finance—Risk Management—mcmillan education 2016 Edition

3. Bank Management 1st Edition (English, Paperback, C. B. Gupta, T. D. Malhotra, C. Jeevanandam)-Sultan Chand & Sons

Mid Semester Examination (CIA-2)                                   :           25%

Continuous Internal Assessments (CIA- 1 & 3)               :           20%

Attendance                                                                               :           05%

Total                                                   :          100%

1.      To provide students with an introduction to the theory and practice of financial markets and institutions.

2.      To helps students to gain a thorough understanding of the workings of financial markets and of financial instruments

To introduce the students to the management of financial markets and institutions in an international context.

Financial Markets, Institutions and Financial Services – Clifford Gomez, PHI Learning Private Ltd.

Mid Semester Examination (CIA-2)                                   :           25%

Continuous Internal Assessments (CIA- 1 & 3)               :           20%

Attendance                                                                               :           05%

Total                                                   :          100%

Types of Life Insurance Policies – Term Life Insurance – Whole Life insurance – Endowment Life Insurance – Unit Linked Policies with or without Profit Policies –Customer Evaluation – Policy Evaluation – Cost and Benefit – Group and Pension Insurance Policies – Special features of Group Insurance / Super Annuation Schemes – Group Gratuity Schemes – Super Annuation schemes.

Computation of Premiums and Settlement of claims: Premium defined – Premium Calculation Including Rebates – Mode of Rebates – Large sum assured Rebates – Premium Loading – Rider Premiums – Computation of Benefits – Surrender value – Paid up value – Settlement of claims: Intimation procedure, documents and settlement procedures.

Mid Semester Examination (CIA-2)                                   :           25%

Continuous Internal Assessments (CIA- 1 & 3)               :           20%

Attendance                                                                               :           05%

Total                                                   :          100%

This study session builds the conceptual framework for understanding the basic derivatives and derivative markets. Essential features and valuation concepts for forward commitments such as forwards, futures, and swaps and contingent claims such as options are introduced.  The course also provides an overview of the more widely used alternative investments, including hedge funds, private equity, real estate, commodities, and infrastructure investment.

Derivatives: Definitions and Uses, The Structure of Derivative Markets, Types of Derivatives, The Purposes and Benefits of Derivatives, Criticisms and Misuses of Derivatives, Elementary Principles of Derivative Pricing

Mid Semester Examination (CIA-2)                                   :           25%

Continuous Internal Assessments (CIA- 1 & 3)               :           20%

Attendance                                                                               :           05%

Total                                                   :          100%

This course is designed to introduce the concept of a portfolio approach to investments, the investment needs of various types of individual and institutional investors, risk management framework and sources of risk, portfolio risk and return measures. The course also introduces a quantitative framework - Modern Portfolio Theory - for portfolio selection and asset pricing.  Course also covers Portfolio planning and construction process, and introduces development of an investment policy statement.

On completing the course, students will be able to

 
1.      Describe the portfolio approach to investing 
2.      Describe the steps in the portfolio management process
 
3.      Describe mutual funds and compare them with other pooled investment products
 
4.      Describe features of a risk management framework
 
5.      Describe and interpret the minimum- variance and efficient frontiers of risky assets and the global minimum- variance portfolio
 
6.      Calculate and interpret the expected return of an asset using the capm
7. Describe the principles of portfolio construction and the role of asset allocation in relation to the investment policy statement.

A Portfolio Perspective on Investing, Investment Clients, Steps in the Portfolio Management Process, Pooled Investments

Mid Semester Examination (CIA-2)                                   :           25%

Continuous Internal Assessments (CIA- 1 & 3)               :           20%

Attendance                                                                               :           05%

Total                                                   :          100%

This course is designed to introduce ethics, related challenges to ethical behavior, and the role played by ethics in the investment profession. A framework to support ethical decision- making is provided to help guide behavior. Particular emphasis is given to CFA Institute Code of Ethics and Standards of Professional Conduct. The course also covers Global Investment Performance Standards.

On completing the course, students will be able to:

1. Explain ethics, describe the need for high ethical standards in the investment industry,
2. Describe and apply a framework for ethical decision making,
3. Describe the structure of the CFA Institute Professional Conduct Program and the process for the enforcement of the Code and Standards;
4. Demonstrate the application of the Code of Ethics and Standards of Professional Conduct to situations involving issues of professional integrity,
5. Explain why the GIPS standards were created, what parties the GIPS standards apply to, and who is served by the standard, describe the nine major sections of the GIPS standards.

Introduction, Ethics, Ethics and Professionalism, Challenges to Ethical Conduct, The Importance of Ethical Conduct in the Investment Industry,  Ethical vs. Legal Standards, Ethical Decision- Making Frameworks, Applying the Framework  

Mid Semester Examination (CIA-2)                                   :           25%

Continuous Internal Assessments (CIA- 1 & 3)               :           20%

Attendance                                                                               :           05%

Total                                                   :          100%

The course will cover internal audit from a broad perspective that includes Internal Control Frameworks, business processes and accounting systems. Topics include internal auditing standards, ethics, implementation of key control concept, strategic and operational role of Internal Audit.

Define Purpose, authority, and responsibility of the internal audit activity; IIA Code of Ethics

Internal Auditing and Info System Auditing, V.Venkataraman & N Sankara Narayana Pillai (Walters Kluwer)

Mid Semester Examination (CIA-2)                                   :           25%

Continuous Internal Assessments (CIA- 1 & 3)               :           20%

Attendance                                                                               :           05%

Total                                                   :          100%

E-Banking; E-Statements; IVRS (Telebanking); Customer Terminals; Net Banking: Mobile Banking; Funds Transfer, RTGS-NEFT- SWIFT, Utility Payments, EMI Calculator, Online applications for Deposits, Online applications for Loans, Online Credit Score- Core Banking Solutions- Automated CRM and Call centers; Video Conferencing--Artificial Intelligence (Robots)- CTS 2010; Kiosks- E Zone; UPI (incl BHIM and Aadhaar Based), Anywhere Banking-E filing of Tax returns-ATM, Debit and Credit Cards—SMS Alerts

1.  IIBF ( Indian institute of Banking and Finance)—Digital Banking

2. E-Banking in India—Challenges and Opportunities –Editors R K Uppal and RimpiJatana –UPSTD forefront

3. Health Insurance Sector in India Hardcover – 1 Feb 2009

T Mahendran

4. Life Insurance in India –Opportunities, Challenges and Strategic Perspective; Author-H Sadhak—Sage publication

Mid Semester Examination (CIA-2)                                   :           25%

Continuous Internal Assessments (CIA- 1 & 3)               :           20%

Attendance                                                                               :           05%

Total                                                   :          100%

This course intends to provide an overview of the international finance including forex markets, risks and various avenues.

On completing the course students will be able to:

1.      Discuss about foreign exchange markets and international financial markets
 
2.      Explain the various instruments traded in forex markets
 
3.      Analyze international investment avenues
 
4.      Analyze foreign exchange risks and risk management strategies
Evaluate and manage foreign exchange risk exposure

Financial Management in a Global Context, Recent Changes in Global Financial Markets, International Monetary System, Foreign exchange reserves, Balance of payments, Balance of Trade, Bilateral and multilateral agreements relating to financial transactions, Flow of funds internationally through FDI and FII, Govt Policies regarding FII & FDI, Integration of global developments with the changing business environment in India.

Shapiro, Allen C., Multinational Financial Management, New Delhi, Prentice Hall India Pvt. Ltd.

Apte P.G., Multinational Financial Management, New Delhi, Tata McGraw Hill

Seth A.K., International Financial Management, New Delhi, Galgotia Publishing Company

Levi, Maurice, International Finance, New York, McGraw Hill Inc.

Eiteman, David K., Arthur Stonehill and Michael H. Moffett, Multinational Business Finance

Mid Semester Examination (CIA-2)                                   :           25%

Continuous Internal Assessments (CIA- 1 & 3)               :           20%

Attendance                                                                               :           05%

Total                                                   :          100%

Meaning and Scope of International Banking—Global Trends and developments, Offshore Banking Units-Profitability of International Banking Operations—Correspondent Banking and Interbank Banking—Investment Banking, Wholesale Banking, Retail Banking, Merchant Banking—International Financial Institutions-IMF: IBRD; Bank of International Settlements, International Financial Corporation, ADB—Legal and Regulatory Aspects—International Risk Management.—Management of foreign branches of Indian Banks

Mobilisation of resources—Equity and Debt Products like ECBs, ADRs, ECCB and other types of Bonds. Syndication of Loans—Global Capital Markets

Financing MNCs—documentation and Monitoring—FII and FDIs—Joint Ventures—Investment Opportunities for Indian Residents, Indian Companies and Banks.

1. Finance-IIBF (Indian Institute of Bankers) . International Banking Operations

2. Francis Cherunilam, “International Trade and Export Management”, Himalaya Publishing House -- Edition- 2017.

3. Insurance Institute of India – IC 67- Marine Insurance

4. P.K. Gupta: Insurance & Risk Management, Himalaya Publishing House: Mumbai.

5. Foreign Trade and Foreign Exchange—O P Agarwal and B K Chudhary—Himalaya Publishing House—Edition 2017

1. WTO Annual Reports

2. Foreign Trade Policy with Handbook of Procedures (Vol.1) 2015-2020

Author: AnandGarg; Edition-24th Edition Dec 2017-JAB Book Code 183434

3. Foreign Exchange concepts and control—C Jeevanandam, Jain Books

4. Foreign Exchange Arithmetic—C Jeevandam

5.  Insurance Institute of India - IC-63 - Marine Clauses

6. Insurance Institute of India - IC-66 - Marine Insurance Claims

Mid Semester Examination (CIA-2)                                   :           25%

Continuous Internal Assessments (CIA- 1 & 3)               :           20%

Attendance                                                                               :           05%

Total                                                   :          100%