4.33 dip in comm. banking, retail banking, capital market, invst

AC 7-4-2014

Item No. – 4.33

Syllabus for the

M. E. (Signal Processing)

Program: M.E.

Course: Signal Processing

(As per Credit Based Semester and Grading System with

effect from the academic year 2014–2015)

UNIVERSITY OF MUMBAI

1 year Post Graduate Diploma Courses

Commercial Banking

Retail Banking

Capital Market

Investment Management

(Credit Based Semester and Grading System

with effect from the academic year 2014-15)

Syllabus

For

Post Graduate Diploma Courses in Management

(Effective from Academic Year 2014-15)

Title :- Diploma in Commercial Banking/Retail Banking/Capital

Markets/Investment Management

Name of the program – Post Graduate Diploma Courses

Nature of the program – One year diploma course of Mumbai University

Eligibility Criteria

A learner for being eligible for admission into the Post Graduate Diploma Courses shall have

passed the Bachelor’s degree examination of this university or any other university recognized as

equivalent thereto.

Preamble

The working professionals often need to upgrade their skills to match ever evolving industry

requirements. In today’s era of information, corporates are increasingly demanding professionals

with in – depth and exhaustive knowledge in a specific domain. The new diploma courses and its

curriculum will help realign the current industry expectations in terms of the skill sets demanded

under new business environment

The Current Scenario

Changing facets of businesses under globalised environment

Dynamism in industry practices and evolution of technology

Emergence of new businesses and business practices

Expectations of Key stakeholders viz. industry, academicians and students

Objectives of new Diploma programme

The new diploma programme prepare students for a career in diverse sectors nationally as well

as globally. It facilitates absorption & application of knowledge in theory and practice across

multiple functional areas of management and enables students to adopt an integrated approach

towards real life situations and circumstances

The Objectives of Diploma courses are: -

To help students to concentrate on goals tailored to career

To provide some flexibility to institutions to impart new and contemporary curriculum

To design curriculums in line with expectations of stakeholders – viz. corporate, students

and community

To upgrade skills in cross functional areas for the benefit of working professionals.

The goal is to imbibe and enhance the following skill sets

Focused on specific industry requirements

Exposure to global practices

Enhancement of cross – functional skills

Encourage Peer based learning and team work

Highlights of the New Diploma Programmes & their Curriculum

1) Introduction of new domain study with required skill sets in Commercial Banking, Retail

Banking, Capital Markets, Investment Management, Financial Risk Management and Project

Management

2) Shorter duration course with focused learning of specific industry requirements

3) Introduction of new subjects having current industry expectations

Potential Opportunities in the Banking Sector

There is immense scope for job opportunities in the Banking Sector. It is estimated that with

close to 50% of workforce in public sector banks set to retire in the next few years, the banking

industry will soon be among the top employers offering 5 – 7 lakh jobs. Apart from core banking

jobs, there will be an increase in backend jobs, including those in processing and outsourcing.

The new employees need to be trained well and made competitive to face the challenges of the

banking sector. Thus this course will essentially bridge the talent gap in public and private

sector.

Details of the new diploma programmes

Structure of the Diploma Courses Curriculum

Post Graduate Diploma in Commercial Banking - Semester I

Introduction to Equity, Fixed Income Securities &

Derivatives

Introduction to banking

Central bank functions and banking regulations

Accounting and bank

audit

Introduction to Risk

Management

Post Graduate Diploma in Commercial Banking - Semester II

International banking

Merchant banking

Banking technology and payment systems

International banking regulations

Dissertation Project

Post Graduate Diploma in Retail Banking - Semester I


Derivatives

Introduction to banking

Central bank functions and banking regulations

Accounting and bank

audit

Wealth Management & Alternative Investments

Post Graduate Diploma in Retail Banking - Semester II

Financial Markets, Products & Institutions


Management

Microfinance & Financial Inclusion

Banking Technology & Payment Systems


Post Graduate Diploma in Capital Markets - Semester I


Derivatives

Capital Markets

Security Analysis & Portfolio Management

Entities in Financial Services World & Role of a Finance

Executive

Analysis of Financial Statements

Post Graduate Diploma in Capital Markets - Semester II

Regulation of Financial Services Companies


Management

Derivatives Products & Strategies

Commodities Market


Post Graduate Diploma in Investment Management - Semester I


Derivatives

Wealth Management & Alternative Investments

Security Analysis & Portfolio Management

Entities in Financial Services World & Role of a Finance

Executive

Analysis of Financial Statements

Post Graduate Diploma in Investment Management - Semester II

Regulation of Financial Services Companies


Management

Derivatives Products & Strategies

Commodities Market


Project

As part of the curriculum, the students will work on a project assignment of 100 marks relevant

to their chosen Diploma discipline. They will submit a project report to the institute at the end of

the second semester.

Faculty Students Ratio

Faculty students ratio shall be 1:15. For staffing pattern, there shall be one Full time faculty at

each diploma programme. The rest shall be drawn from Industry as domain experts, who shall be

designated as visiting faculty/adjunct faculty. Institutes are expected to attract more people with

industry experience to participate in this programme. To attract more industry experts to

participate in these programmes, they should be suitably remunerated.

Teaching Pedagogy

Teachers are expected to impart knowledge through lectures and new , innovative pedagogical

approaches. Some of these techniques are: -

Group Discussions, Lectures, Role plays, Field Work, Workshops, Counseling Sessions,

Watching Educational and Informative Videos, Assignments, Quizzes, Tests, Live Projects, Case

Studies, Presentations, Simulations, Industrial Visits, Participation in academic and extra –

curricular activities, inculcation of industry specific skills and training & development sessions

The lectures can be scheduled every day evening from 06.00 pm to 09.00 pm or on Saturdays

and Sundays to accommodate all subjects and to suit the convenience of employed students who

would enroll for value addition in their present status.

Rules and Regulations related to ONE YEAR POST GRADUATE DIPLOMA

COURSES

Eligibility A learner for being eligible for admission into the ONE YEAR

POST GRADUATE DIPLOMA COURSES shall have passed

the Bachelor’s degree examination of this university or any

other university recognized as equivalent thereto.

Duration The duration of POST GRADUATE DIPLOMA COURSES

courses shall be of one year comprising of two semesters. There

shall be one University Examination in each semester.

Fees The tuition fees for POST GRADUATE DIPLOMA COURSES

shall be Rs 50000/year.

Examination The examination for POST GRADUATE DIPLOMA

COURSES shall be semester based and held twice a year on

such dates as may be fixed in that behalf.

A candidate must forward his application for admission to the

examination to the controller of examination on or before the

date fixed.

A Student who has once registered himself for the POST

GRADUATE DIPLOMA COURSES, but has not appeared at

the said examination or has appeared and failed there at and

desires to reappear at a subsequent examination shall renew his

registration for the examination at least three months prior to

the date of commencement of the examination after paying the

prescribed fees.

Reappearance

in

Examination

On payment of a fresh fee, a candidate who fails to pass the

examination in a subject(s) shall be allowed to reappear thereat

on a subsequent occasion.

Evaluation A candidate shall be examined in the subjects mentioned in the

POST GRADUATE DIPLOMA COURSES at the end of each

semester.

Diploma in Commercial Banking – Semester – I

Sr.

No. Subject

Teaching Hours Assessment Pattern

No. of

Sessions of

90 minutes

No. of

Sessions of

90 minutes

per week

Continu

ous

Assessm

ent

Semester

End

Examinati

on

Total

Marks

Duration

of Theory

Paper

No of

Credits

1

Introduction to

Equity, Fixed

Income

Securities &

Derivatives

30 2

40 UA 60 UA 100 3 4

2 Introduction to

banking 30 2

40 UA

60 UA

100

3

4

3

Central bank

functions and

banking

regulations

30 2

40 UA 60 UA 100 3 4

4

Accounting

and bank

audit

30 2

40 UA 60 UA 100 3 4

5

Introduction to

Risk

Management

30 2

40 UA 60 UA 100 3 4

Total No of Credits 20

UA: - University Assessment; IA: - Internal Assessment

Diploma in Commercial Banking – Semester – II

Sr.

No. Subject


No. of

Sessions of

90 minutes

No. of

Sessions of

90 minutes

per week

Continu

ous

Assessm

ent

Semester

End

Examinati

on

Total

Marks

Duration

of Theory

Paper

No of

Credits

1 International

banking 30 2

40 UA 60 UA 100 3 4

2 Merchant

banking 30 2

40 UA

60 UA

100

3

4

3

Banking

technology and

payment

systems

30 2

40 UA 60 UA 100 3 4

4

International

banking

regulations

30 2

40 UA 60 UA 100 3 4

5 Dissertation

Project 100

4



Semester Total No of

Credits

Semester I 20

Semester II 20

Total 40

DIPLOMA IN COMMERCIAL BANKING

SEM – I

Introduction to Equity, Fixed Income Securities and Derivatives 100 marks

(15 Sessions of 3 Hours Each) Sem I

Equity

SL.No Particulars Sessions

1 Revisit basics - formation of a company, need for capital

Primary market for raising funds - equity IPO

Steps in issue management - approvals, marketing, underwriting,

regulatory reporting, book building and issue closure

Issue prospectus, reporting to authorities, cash management

Investor's perspective on investment in equities - risk & return,

mutual funds - equity funds and comparison with direct investment

in equity

2 Sessions

of 3 Hours

Each

2 Secondary market - types of orders, functioning in US, EU and India

Corporate actions - dividend, rights, bonus etc.

Latest developments in equity trading – algorithmic analytics etc.

Fundamental analysis - b/s, P&L, ratios, peer and competitor

analysis

Technical analysis - DMA, predictive tools, charts

Introduction to quantitative trading techniques

Types of markets - Auction, Dealer, market making and hybrid, dark

pools, crossing networks, communication networks and other

alternative trading systems (ATS)

1 Session of

3 Hours

Each

3

Recent advances in technology - mobile platforms, co-location etc.

Messaging in post trade pre settlement - Straight Through

Processing (STP), messaging protocols - SWIFT, FIX

Clearing and settlement of equity trades - comparison of regulated

exchanges and over the counter (OTC), margin and risk

management, trade failure, consequences, auction, securities lending

and borrowing

1 Session of

3 Hours

Each

Fixed Income Securities


4 Revisit basics - formation of a company, need for borrowing,

leverage

Types of bonds - secured, unsecured, Government bonds, Company

debentures, term structure, inflation protected, convertible etc.

Terms used in bond markets - yield, curve, coupon, rating & credit

risk

1 Session of

3 Hours

Each

5 Bond mathematics - time value of money, cash flow based

calculations - NPV, IRR (yield to maturity), convexity, duration and

immunization

Issue of bonds in primary markets - IPO process, placement and

market making


regulatory reporting, rate structure

Issue prospectus, reporting to authorities, cash flow - liability

management

Investor's perspective on investment in FI - credit risk & return,

Mutual funds - bond funds and comparison with direct investment in

FI, call risk, inflation risk and reinvestment risk

2 Sessions

of 3 Hours

Each


Corporate actions - coupon, processing of convertible warrants

Techniques in FI trading - LIBOR, zero coupon yield curve,

modeling, yield analytics etc.

Fundamental analysis - b/s, P&L, liquidity ratios, peer and

competitor analysis, past history of defaults by the issuer

Clearing and settlement practices in fixed income securities market

2 Sessions

of 3 Hours

Each

Derivatives


7 Forwards - characteristics, OTC markets where forwards are used,

risk management in absence of central counterparty, flexibility in

customized contracts and disadvantages in trading such contracts

Futures - standardization over forwards, regulated markets where the

futures are traded, financial and non financial futures contracts,

terms and conditions, daily mark to market as risk management

mechanism, pricing of futures, how the futures price tends to spot

price towards maturity, delivery mechanisms for settlement

Options - types of options - put and call, buyers and sellers of

options, trading in options contracts, margin for risk management,

settlement practices for exercised options, effect of corporate action

on options, option chains, open interest, calculation of option price

(basics of Black and Scholes model), strike price, intrinsic and time

value of options, option risk - return charts, greeks and basic

calculations

Swaps - interest rate, forex, equity-fixed income swaps, OTS swap

transactions, how banks act as intermediaries for swaps, cash flow

management, resets and calculations

2 Sessions

of 3 Hours

Each

8 Mutual funds - asset management company, MF trust, issue of units,

distribution channels, cash flow management for open ended funds,

types of schemes - open-close, growth-sectoral-equity-fixed income

etc., MF ratings, entry-exit loads, how ETF differs from MF, NAV

calculation, regulation of mutual funds - SEBI and SEC

Foreign currency as investment asset class, derivatives on foreign

exchange rates, hedging, bid-offer spreads, simple calculations

Insurance - life and non life insurance schemes, riders, actuarial

basics, regulation of insurance sector, asset liability and risk

management for insurance companies, premium collection and

bonus distribution

3 Sessions

of 3 Hours

Each


9 Pension funds - defined benefit, defined contribution funds,

employee and employer contributions, investment of pension fund

investments, regulation, differed tax schemes, types of pension funds

in US and UK

3 Sessions

of 3 Hours

Each

Mortgage backed securites - asset (receivable) pooling, formation of

a trust company, selling of pooled assets, creation of securities,

selling and distribution to retail investors, senior tranches,

repayment risk, how the mortgage market triggered the collapse in

US in 2009-10

Other asset classes - alternative investments, hedge funds, private

equity, investment in collectibles - art, wine etc.

10 Case Studies and Presentations 2 Sessions

of 3 Hours

Each

Reference Text:

The Hand Book of Fixed Income Securities- Fabozzi Frank McGraw Hill

International.

Fixed Income Markets & Their Derivatives: Suresh Sunderasan –Thomson

Learning.

Swaps : Richard Flavell – John Wiley Publications.

Security Analysis and Portfolio Management (6th Edn.) By Donald Fischer and Ronald

Jordan, Prentice Hall of India (1995)

Securities Analysis and Portfolio Management , Prasanna Chandra, Tata McGraw Hill

(2002)

Options, Future & Other Derivatives – by John. C.Hull

Applied Derivatives – Richard .J. Rendleman, Jr

Special Focus on:

Chap: 2 -- PUT – CALL Parity

Chap : 3 & 4 -- Binomial Option Pricing Models

Option Volatility & Pricing – Sheldon Naten Berg

Introduction to Banking 100 marks (15 Sessions of 3 Hours Each) Sem I

Reference Text:

1. Banking in the new Millennium by ICFAI University banking series edited by N

SL no Particulars Sessions

1. Introduction to Banking

Role of banks in an economy 2 sessions of 3

hours

2 Structure, growth and development of banking in India 1 session of 3

hours

3 Study of bank balance sheet and profit and loss account

Treasury and funds management in banks 2 sessions of 3

hours

4 Risk management in Banks

Assets liability management in banks 2 sessions of 3

hours

5 Regulatory role of RBI and its monitory policy 1 session of 3

hours

6 Cooperative banks, RRB’s and rural banking in India 1 session of 3

hours

7 Special issues in Indian banking sector

Narasimham committee report

Basel II

Assets Reconstruction Companies

Securitization Act

3 sessions of 3

hours

8 Consolidation In Indian banking sector 1 session of 3

hours

9 Case studies and Presentations 2 sessions of 3

hours

Rajashekar, Year 2001.

2. Banking Strategy by ICFAI University banking series edited by Katuri Nageshwara Rao,

Year 2002.

3. Central Banking by Charles Goodhart

4. International Corporate and Investment Banking : Practice and Law by Largan Mark,

UK/Institute of Financial Services/2003

5. European Banking and Financial Services Law by Gerster /Schwander,

Netherland/Kluwer Law Int/2004

6. Banking Supervision and Systemic Bank Restructuring : An International and

Comparative Legal Perspective - By Mwenda Kenneeth Kaoma, London/Cavendis Pub/2000.

7. Risk Management in Banking- 2nd ,By Bessis Joel, Chichester/John Wiley/2004.

8. Commercial Banking : The Management of Risk-2nd By Frster Donald R/Gup Benton

E/Kolari James W, Australia/South-Western/2001.

9. Strategic Business Management and Banking, By Sarkar A N, New Delhi Deep&Deep/2005/.

Central Bank Functions & Banking Regulations 100 marks (15 Sessions of 3

Hours Each) Sem I

SL.

No

Particulars Sessions

1 Central Bank Functions

PART I : The Fundamentals 2 Sessions of 3 Hours Each

The Scope & Subject Matter of Macroeconomics

An Introduction to the Economics of Growth & Development

An Introduction to the Indian Economy - Its Salient Features 2 Sessions of 3 Hours Each

2 Session of 3

Hours Each

2

PART II: The Economic Markets

The Money Market & the Role of Central Banking

How does Commercial Banking Effect Industry & Business

2 Sessions of 3

Hours Each

3 PART III: World Economy and Banking

The World Bank, and IMF conditionalities leading to the liberalisation - privatization -

globalisation exercise and beyond.

Responsibilities of Central Bank - RBI, Federal Board of US

Foreign exchange market, balance of payment and reporing to central

bank

Inflation management and control over money supply using

Government bonds

Developmental measures supported by banking sector

3 Sessions of 3

Hours Each

Reference Text:




Year 2002.












10. Management of Banking & Financial Services – Justin Paul & Padmalatha Suresh – Pearson

Education

11. Principles and Practices of Banking – Indian Institute of Quantitative Finance – MacMillan

Publishers

12.Banking Law & Practice – P.N Varshney

13.Banking Law & Practice – R.K Gupta

4 Banking Regulation

Evolution of banking sector - historical perspective

Regulatory arrangements in different countries - Cental Banking and

Government

Central bank supervision over different types of banks

Statutory requirements - liquidity ratios, subscriptions to Government

bond issues

Evolution of regulation through various crisis situations

Introduction to BASEL II norms for risk identification and

provisioning

Identification of NPAs, provisioning and reporting

Cental bank audit of banks and reporting on banking activities

Control over branch operations and other POS outlets

Anti money laundering, fraud prevention and anti terrorist

funding measures

6 Sessions of 3

Hours Each

5 Case Studies and Presentations

2 Sessions of 3

Hours Each

Accounting and Bank Audit 100 marks (15 Sessions of 3 Hours Each) Sem I


1 International Accounting Standards and implementation in India

Banking transaction record keeping, accounting entries for cash

credit, loans, deposits, interest payments, commissions and taxes

3 Sessions

of 3 Hours

Each

2 Maintaining accounts for clients - retail and corporate, multi level

relationship accounts - deposit, loan etc.

Internal and external audit of books of accounts, audit by central

bank, disclosures and management of audit findings, branch audit,

cash audit and accounting closure

3 Sessions

of 3 Hours

Each

3 Provisioning for non performing assets, liabilities, support client

liabilities for cash credit arrangements

Accounting for complex transactions like swaps hedging using

options and futures, foreign letter of credit, factoring etc.

3 Sessions

of 3 Hours

Each

4 Accounting for international bank branch operations located in

foreigh countries - forex transactions, loands and advances

Regulatory reporting requirements, accounting disclosures for

AGM, MIS reporting

Demonstration of banking ledger in software package

4 Sessions

of 3 Hours

Each

5 Case studies and presentations 2 Sessions

of 3 Hours

Each

Reference Text

Bank Accounting & Audit Control – James E Potts – Bankers Publishing Company

Introduction to Risk Management 100 marks (15 Sessions of 3 Hours Each)

Sem I


1 Risk: Definition

Risk Process – Risk Organisation

Key Risks – Interest Rate Risk, Market Risk, Currency Risk, Credit

Risk, Liquidity Risk, Legal & Operational Risk

4 Sessions

of 3 Hours

Each

2 Risk Measurement & Control

Calculation

Risk Exposure Analysis

Risk Management / Mitigation policy

Risk Immunization Policy / Strategy fixing exposure limits

4 Sessions

of 3 Hours

Each

3 Delegation with accountability

i) Open position

ii) Asset position limit

iii) Deal size

iv) Individual dealer’s limit

v) Stop loss limits

5 Sessions

of 3 Hours

Each


of 3 Hours

Each

Reference Text

Financial Risk Management – Dun & Bradstreet –Tata McGraw Hill Education

Quantitative Risk Management – A Practical Guide to Financial Risk – Wiley Finance

DIPLOMA IN COMMERCIAL BANKING

SEM – II

International Banking 100 marks University Assessment (15 Sessions of 3

Hours Each) Sem II


1 Global trends and developments in international banking,

international financial institutions - IMF, IBRD, BIS, IFC, ADB,

WTO

2 Sessions

of 3 Hours

Each

2 International trade finance, documentary credit practices,

correspondent banking, routing of documents through banks, credit

against invoice, UCPDC 600, Letter of Credit, endorsing the

documents, legal remedies, recourse to issuer and recovery, seller's

credit, bilateral/ counter trade

2 Sessions

of 3 Hours

Each

3 Factoring services - assignment of invoices, responsibilities of a

factor, pooling and routing of invoices, processing of very high

volumes of transactions, payment and recovery mechanisms

2 Sessions

of 3 Hours

Each

4 Payment mechanisms in international banking transactions, ACH

and other arrangements, foreigh currency transactions, settlement,

reconciliation and fund transfer for cross border transactions

2 Sessions

of 3 Hours

Each

5 Asset liability management to manage foreign currency liabilities on

behalf of clients 1 Session of

3 Hours

Each

6 FEMA and regulatory framework in India, international regulation 1 Session of

3 Hours

Each

7 International loan agreements, covenants and clauses, NRI services,

import financing, payments and remittances in foreign currency 1 Session of

3 Hours

Each

8 Raising international debt, agreements, ECB, FCNR, project/

infrastructure/ long term finance, FDI, loan arrangements through

EXIM Bank

1 Session of

3 Hours

Each

9 Foreign exchange management and regulatory control of central

bank 1 Session of

3 Hours

Each


of 3 Hours

Each

Reference Text

International Banking Operations – IIBF – MacMillan Publishers

International Banking – Legal & Regulatory Aspects – IIBF – MacMillan Publishers

International Corporate Finance – IIBF – MacMillan Publishers

Merchant Banking 100 marks (15 Sessions of 3 Hours Each) Sem II


1 Introduction to merchant banking functions - issue management,

regulatory supervision - Companies Act, SEBI, SERA, FEMA

provisions

2 Sessions

of 3 Hours

Each

2 Project appraisal, costing, means of financing, long term sources -

capital issue, FDI, PE, Venture Capital etc. 2 Sessions

of 3 Hours

Each

3 Entities supporting issue - underwriter, banker to issue, registrar and

brokers 2 Sessions

of 3 Hours

Each

4 Permissions from regulators, issue prospectus, pricing and approval,

book building process, issue management, underwriting arrangement 2 Sessions

of 3 Hours

Each

5 Book building process, green shoe option, private placement with

FIs, MFs, FIIs, etc., Issue of ADR and marketing with FII, NRIs

etc., credit syndication

3 Sessions

of 3 Hours

Each

6 Bought our deals, mergers and acquisitions, sell off and splits 2 Sessions

of 3 Hours

Each


of 3 Hours

Each

Reference Text

Merchant Banking – H.R Machiraju – New Age International Publications

The Merchant Bankers – Joseph Wechsberg

Banking Technology & Payment Systems 100 marks (15 Sessions of 3 Hours

Each) Sem II

Banking Technology


1 Introduction to various process flows in banking transactions,

technology solutions to support these processes

Networking and security concerns in banking technology solutions,

public key infrastructure, SSL layer and other solutions

2 Sessions

of 3 Hours

Each

2 Introduction to solutions used in payment processing, messaging,

document archival, digital signature and fund transfers - RTGS,

IFSC

E-commerce, online banking transactions, confirmation and

payment gateways

1 Session of

3 Hours

Each

3 Credit cards, acquirers, MasterCard, Visa and AMEX networks,

payment processes, commissions, credit card frauds and prevention 1 Session of

3 Hours

Each

4 Core banking solutions, anywhere banking, branch operations

management in core banking environment, approvals, processing,

reconciliation and exception management

1 Session of

3 Hours

Each

5 Technology in delivery channels, data mining, usage and regulatory

restrictions

Disaster recovery, business continuity and roll back of transactions

in case of system failure

2 Sessions

of 3 Hours

Each

6 Threats, viruses and intrusion prevention security policies

1 Session of

3 Hours

Each

Reference Text

Modern Banking Technology by Firdos Temurasp Shroff – Northern Book Centre

Banking Services & Information Technology – R.K Uppal – New Century Publications

Payment Systems


7 Introduction to instruments used for payment - cheques, DD,

banker's cheque etc.

Holder in due course, cheque collection, clearing and discounting for

early payment

1 Session of

3 Hours

Each

8 Negotiable instruments act, concepts of negotiability, dishonour of

cheques and legal remedies

Electronic payment solutions, service providers, network security,

data security and account data protection

1 Session of

3 Hours

Each

9 Intrusion threats, identity theft, frauds and regulatory framework for

prevention and safety of payment gateways

Credit and debit card transactions, networks, security and protection

of card holder account, credit card defaults

1 Session of

3 Hours

Each

10 Automated clearing mechanish in US, business payments (NACHA)

Federal Reserve regulations - Uniform Commercial Code

1 Session of

3 Hours

Each

11 Emerging trends in electronic payment processing systems - eCash

etc. 1 Session of

3 Hours

Each


of 3 Hours

Each

Reference Text

Payment Systems – David B Humphrey – World Bank Publications

Electronic Payment Systems for E – Commerce – Donal O’ Mahony, Michael A Peirce, Hitesh

Tiwari

Payment Systems – James Brook – Aspen Publishers

International Banking Regulations 100 marks (15 Sessions of 3 Hours Each)

Sem II


1 BASEL II - introduction to credit, market and operational risk,

provisioning and reporting to regulators as per norms 2 Sessions

of 3 Hours

Each

2 AML - Anti Money Laundering - impact on client on-boarding,

surveillance, detection of suspect transactions, bocking and reporting

to authorities

3 Sessions

of 3 Hours

Each

3 FATCA - identification of accounts and investments by US nationals

and reporting to US regulators 3 Sessions

of 3 Hours

Each

4 US - Dodd Frank Act - consumer protection, OTC derivatives to

exchanges, centralised data repository, Swap execution facility

(SEF)

3 Sessions

of 3 Hours

Each

5 Banking regulation in EU, UK and APAC 2 Sessions

of 3 Hours

Each


of 3 Hours

Each

Reference Text

International Banking Operations – IIBF – MacMillan Publishers

International Banking – Legal & Regulatory Aspects – IIBF – MacMillan Publishers

International Corporate Finance – IIBF – MacMillan Publishers

Dissertation Project 100 Marks

Scheme of Assessments for Subjects of 100 Marks

The Semester end Examination will be conducted for 60 Marks.

Internal Assessments will be conducted for 40 Marks.

The allocation of 40 marks shall be on the following basis: -

a) Periodical class tests held in the given semester (20 Marks)

b) Presentations throughout the semester (10 Marks)

c) Attendance and Active participation in routine class instructional deliveries (05 Marks)

d) Overall Conduct as a responsible student, mannerism and articulation and exhibition of

leadership qualities in organizing related academic activities. (05 Marks)

Note: A Student has to separately secure minimum 50% marks (i.e 20 out of 40) in the

internal assessments and secure minimum 50% marks (i.e 30 out of 60) in the

Semester End Examination in every subject to be declared as Pass.

Question Paper Pattern for Semester End Examination (60 Marks)

There will be Seven Questions in all.

Q1 would be compulsory and would carry 20 Marks

In addition to Q1, there would be six questions. Each question would carry 10 Marks. Each of

these Six Questions will have three sub – questions and each sub – question would carry 05

Marks

Students have to attempt any four out of the remaining six Questions and within each question;

students have to attempt any two out of three sub – questions.

In all, students have to attempt five questions i.e (Q1+Any Four of the remaining)

Q1 – 20 Marks (Compulsory)

Attempt Any Four out of the Remaining Six Questions

Q2 (a) --------------- (5 Marks)

(b) --------------- (5 Marks)

(c) --------------- (5 Marks)

Any two from (a) or (b) or (c) ----------- (5x2) = 10 Marks

Q3 (a) --------------- (5 Marks)

(b) --------------- (5 Marks)

(c) --------------- (5 Marks)


Q4 (a) --------------- (5 Marks)

(b) --------------- (5 Marks)

(c) --------------- (5 Marks)


Q5 (a) --------------- (5 Marks)

(b) --------------- (5 Marks)

(c) --------------- (5 Marks)


Q6 (a) --------------- (5 Marks)

(b) --------------- (5 Marks)

(c) --------------- (5 Marks)


Q7 (a) --------------- (5 Marks)

(b) --------------- (5 Marks)

(c) --------------- (5 Marks)


Credit Based Grading System for One Year Diploma Course

Semester End Examinations

Credit Point:

A Credit Point denotes the quantum of effort required to be put in by a student, who takes

up a course. In other words, it is an index of number of learning hours prescribed for a

certain segment of learning.

Learning Hours

Learning Hours for Subjects of 100 Marks (60+40)

Learning Hours consist of Classroom teaching hours and other complementary learning activities

indicated here below

1) Classroom teaching hours ((15 Sessions X 3 Hours = 45 Hours))

2) Other Complementary learning activities (75 Hours)

The learning activities consist of the following:

Reading, Introspection, Thoughtful Reflection, Group Discussions, Lectures, Field Work,

Workshops, Counseling Sessions, Watching Educational and Informative Videos,

Assignments, Live Projects, Case Studies, Presentations, Preparation for Examinations,

Participation in academic and extra – curricular activities, inculcation of industry specific

skills and training & development sessions.

The total learning hours would be thus equivalent to 45+75=120 Hours for subjects of

100 Marks

Credit Point Computation

One credit is construed as equivalent to 30 learning hours.

Credit completion and Credit accumulation:

Each module of an academic program has been assigned specific credit points defining

successful completion of the course under study.

Credit completion or Credit acquisition may be considered to take place after the learner

has successfully cleared all the evaluation criteria with respect to a single course.

A learner who successfully completes a 4 CP (Credit Point) course is treated to have

collected or acquired 4 credits. His performance above the minimum prescribed level

(viz. grades / marks obtained) has no bearing on the number of credits collected or

acquired.

A learner keeps on accumulating more credits as he completes additional courses.

Introduction of Grading System at the University of Mumbai

A well designed evaluation system that integrates the aforesaid parameters having due attention

to their relative importance in the context of the given academic programme.

What is Grading?

Grading, in the educational context is a method of reporting the result of a learner’s

performance subsequent to his evaluation. It involves a set of alphabets which are clearly

defined and designated and uniformly understood by all the stake holders.

A properly introduced grading system not only provides for a comparison of the learners’

performance but it also indicates the quality of performance with respect to the amount of

efforts put in and the amount of knowledge acquired at the end of the course by the

learners.

The Seven Point Grading System

A series of meetings of all the Deans & Controller of Examinations were held to discuss

the system of grading to be adopted at the post graduate level. Mumbai University,

subsequently in its Academic Council meeting and in its Management Council meeting

resolved to adopt and implement the Seven (07) Point Grading System from the

academic year 2012-13.

The Grade Point and the grade allocation shall be as per the Grade Table given below:

Note: - Consider 1 Grade Point is equal to Zero for CG calculations in respect of failed

learner/s in the concerned course/s.

Conversion of Marks to Grades and Calculations of GPA (Grade

Point Average)

In the Credit and Grade Point System, the assessment of individual Courses in the

concerned examinations will be only on the basis of marks obtained; however these

marks shall be converted later into Grades by a mechanism wherein the overall

performance of the Learners can be reflected by the overall evaluation in terms of

Grades.

Abbreviations used for gradation needs understanding of each and every parameter

involved in grade computation and the evaluation mechanism. The abbreviations and

formulas used are as follows:-

Abbreviations and Formula’s Used:-

G: Grade

GP: Grade Points

C: Credits

CP: Credit Points

CG: Credits X Grades (Product of credits & Grades)

∑CG: Sum of Product of Credits & Grades points

∑C: Sum of Credits points

SGPA = ∑CG

------

∑C

SGPA: Semester Grade Point Average shall be calculated for individual semesters. (It is also

designated as GPA)

CGPA: Cumulative Grade Point Average shall be calculated for the entire Programme by

considering all the semesters taken together.

Special Point to Note:

While calculating the CG the value of Grade Point 1 shall be considered as Zero (0) in case

of learners who failed in the concerned course/s obtaining marks below 50.

After calculating the SGPA for an individual semester and the CGPA for entire programme, the

value can be matched with the grade as given in the Grade Point table as per the Seven (07)

Points Grading System and expressed as a single designated GRADE such as O, A, B, etc….

The SGPA of learners who have failed in one subject or more than one subjects shall not be

calculated.

Illustrations of the Calculations: -

Credit Points and Grading Calculations for First Semester

1 Credit = 30 Learning Hours

Result: - Passing in All Courses with more than 50% Marks

Courses In

Semesters

No of

Learning

Hours

Credits

Per

Course ( C

)

Marks

Obtained

(%)

Grade

Grade

Points

(G)

∑CG =

CxG

SGPA =

∑CG/∑C

Introduction to

Equity, Fixed

Income

Securities &

Derivatives

60 4 55 D 3 12

88/20=4.4

Introduction to

banking 60 4 60 C 4 16

Central bank

functions and

banking

regulations

60 4 70 A 6 24

Accounting and

bank

audit

60 4 80 O 7 28

Introduction to

Risk

Management

60 4 50 E 2 8

Total 480 ∑C=20

Credit Earned = 20 ∑CG =

88 Grade C

Passes



Result: - Fails in One Course or More than One Courses with Less than 50% Marks

Courses In Semesters

No of Learning

Hours

Credits Per Course ( C )

Marks Obtained

(%) Grade

Grade Points

(G)

∑CG = CxG

SGPA = ∑CG/∑C

Introduction to

Equity, Fixed

Income

Securities &

Derivatives

60 4 55 D 3 12

--------

Introduction to

banking 60 4 60 C 4 16

Central bank

functions and

banking

regulations

60 4 70 A 6 24

Accounting and

bank

audit

60 4 80 O 7 28

Introduction to

Risk

Management

60 4 45 F 1 0

Total 480 ∑C=20

Credit Earned = 16 ∑CG =80

Grade F Fails

Note: - Consider 1 Grade Point is equal to Zero for CG calculations of failed


The student has been awarded 1 Grade Point, even though he has failed in the

subject of Introduction to Risk Management, however, 1 Grade Point is equal to

Zero for CG calculations of failed learner/s in the concerned course/s.

The SGPA has not been calculated as the student has failed.

Diploma in Retail Banking – Semester – I

Sr.

No. Subject


No. of

Sessions of

90 minutes

No. of

Sessions of

90 minutes

per week

Continu

ous

Assessm

ent

Semester

End

Examinati

on

Total

Marks

Duration

of Theory

Paper

No of

Credits

1

Introduction to

Equity, Fixed

Income

Securities &

Derivatives

30 2

40 UA 60 UA 100 3 4

2 Introduction to

banking 30 2

40 UA

60 UA

100

3

4

3

Central bank

functions and

banking

regulations

30 2

40 UA 60 UA 100 3 4

4

Accounting

and bank

audit

30 2

40 UA 60 UA 100 3 4

5

Wealth

Management

& Alternative

Investments

30 2

40 UA 60 UA 100 3 4



Diploma in Retail Banking – Semester – II

Sr.

No. Subject


No. of

Sessions of

90 minutes

No. of

Sessions of

90 minutes

per week

Continu

ous

Assessm

ent

Semester

End

Examinati

on

Total

Marks

Duration

of Theory

Paper

No of

Credits

1

Financial

Markets,

Products &

Institutions

30 2

40 UA 60 UA 100 3 4

2

Introduction to

Risk

Management

30 2

40 UA

60 UA

100

3

4

3

Microfinance

& Financial

Inclusion

30 2

40 UA 60 UA 100 3 4

4

Banking

Technology &

Payment

Systems

30 2

40 UA 60 UA 100 3 4

5 Dissertation

Project 100 Marks

4




Credits

Semester I 20

Semester II 20

Total 40

DIPLOMA IN RETAIL BANKING

SEM – I



Equity









in equity

2 Sessions

of 3 Hours

Each





analysis






1 Session of

3 Hours

Each

3







and borrowing

1 Session of

3 Hours

Each




leverage




risk

1 Session of

3 Hours

Each



immunization


market making




management




2 Sessions

of 3 Hours

Each








2 Sessions

of 3 Hours

Each

Derivatives
















calculations




2 Sessions

of 3 Hours

Each











bonus distribution

3 Sessions

of 3 Hours

Each





in US and UK

3 Sessions

of 3 Hours

Each





US in 2009-10




of 3 Hours

Each

Reference Text:


International.


Learning.





(2002)



Special Focus on:




Introduction to Banking 100 marks (15 Sessions of 3 Hours Each) Sem I

Reference Text:


SL no Particulars Sessions

1. Introduction to Banking

Role of banks in an economy 2 sessions of 3

hours

2 Structure, growth and development of banking in India 1 session of 3

hours

3 Study of bank balance sheet and profit and loss account

Treasury and funds management in banks 2 sessions of 3

hours

4 Risk management in Banks

Assets liability management in banks 2 sessions of 3

hours

5 Regulatory role of RBI and its monitory policy 1 session of 3

hours

6 Cooperative banks, RRB’s and rural banking in India 1 session of 3

hours

7 Special issues in Indian banking sector

Narasimham committee report

Basel II

Assets Reconstruction Companies

Securitization Act

3 sessions of 3

hours

8 Consolidation In Indian banking sector 1 session of 3

hours

9 Case studies and Presentations 2 sessions of 3

hours



Year 2002.












Central Bank Functions & Banking Regulations 100 marks (15 Sessions of 3

Hours Each) Sem I

SL.

No

Particulars Sessions

1 Central Bank Functions

PART I : The Fundamentals 2 Sessions of 3 Hours Each

The Scope & Subject Matter of Macroeconomics

An Introduction to the Economics of Growth & Development

An Introduction to the Indian Economy - Its Salient Features 2 Sessions of 3 Hours Each

2 Session of 3

Hours Each

2

PART II: The Economic Markets

The Money Market & the Role of Central Banking

How does Commercial Banking Effect Industry & Business

2 Sessions of 3

Hours Each

3 PART III: World Economy and Banking

The World Bank, and IMF conditionalities leading to the liberalisation - privatization -

globalisation exercise and beyond.

Responsibilities of Central Bank - RBI, Federal Board of US

Foreign exchange market, balance of payment and reporing to central

bank

Inflation management and control over money supply using

Government bonds

Developmental measures supported by banking sector

3 Sessions of 3

Hours Each

Reference Text:




Year 2002.












10. Management of Banking & Financial Services – Justin Paul & Padmalatha Suresh – Pearson

Education

11. Principles and Practices of Banking – Indian Institute of Quantitative Finance – MacMillan

Publishers

12.Banking Law & Practice – P.N Varshney

13.Banking Law & Practice – R.K Gupta

4 Banking Regulation

Evolution of banking sector - historical perspective

Regulatory arrangements in different countries - Cental Banking and

Government

Central bank supervision over different types of banks

Statutory requirements - liquidity ratios, subscriptions to Government

bond issues

Evolution of regulation through various crisis situations

Introduction to BASEL II norms for risk identification and

provisioning

Identification of NPAs, provisioning and reporting

Cental bank audit of banks and reporting on banking activities

Control over branch operations and other POS outlets

Anti money laundering, fraud prevention and anti terrorist

funding measures

6 Sessions of 3

Hours Each

5 Case Studies and Presentations

2 Sessions of 3

Hours Each

Accounting and Bank Audit 100 marks (15 Sessions of 3 Hours Each) Sem I


1 International Accounting Standards and implementation in India

Banking transaction record keeping, accounting entries for cash

credit, loans, deposits, interest payments, commissions and taxes

3 Sessions

of 3 Hours

Each

2 Maintaining accounts for clients - retail and corporate, multi level

relationship accounts - deposit, loan etc.

Internal and external audit of books of accounts, audit by central

bank, disclosures and management of audit findings, branch audit,

cash audit and accounting closure

3 Sessions

of 3 Hours

Each

3 Provisioning for non performing assets, liabilities, support client

liabilities for cash credit arrangements

Accounting for complex transactions like swaps hedging using

options and futures, foreign letter of credit, factoring etc.

3 Sessions

of 3 Hours

Each

4 Accounting for international bank branch operations located in

foreigh countries - forex transactions, loands and advances

Regulatory reporting requirements, accounting disclosures for

AGM, MIS reporting

Demonstration of banking ledger in software package

4 Sessions

of 3 Hours

Each


of 3 Hours

Each

Reference Text

Bank Accounting & Audit Control – James E Potts – Bankers Publishing Company

Wealth Management and Alternative Investments 100 marks (15 Sessions of

3 Hours Each) Sem I

Wealth Management


1 Functions of investment advisor, independent advisors, wire house

wealth managers, custodians offering white labled solutions to

advisors, software solutions for advisors

Wealth management client categories - mass affluent, high net

worth, ultra high net worth, unified households

2 Sessions

of 3 Hours

Each

2 Client on boarding - profiling, financial planning, suitability

assessment - aggressive, moderate etc., client preferences,

restrictions, return expectations versus risk appetite

Structure the cash flow forecasting and define the goals, milestones,

liabilities etc.

1 Session of

3 Hours

Each

3

Types of wealth management account structures - separately

managed accounts, unified managed accounts, overlay portfolio

management, sleeves and open architecture wealth management,

portfolio manager models, pooled funds

Technology absorption in wealth management - use of social media

in wealth management, mobility solutions and advantages to

investment advisors

2 Sessions

of 3 Hours

Each

4 Asset allocation, active passive investment styles - advantages,

correlation in security returns and risk diversification, standard

deviation of each asset class and security

Portfolio modeling using multiple asset classes, monitoring

tolerances and rebalancing, substitution rules

Portfolio performance measurement, attribution and reporting

2 Sessions

of 3 Hours

Each

Alternative Investments


5 Hedge funds - concept, strategies, debacle of hedge funds in 2009-

10 market crisis, how hedge funds employed quantitative methods to

generate alpha, how regulation caught up with the hedge fund

industry

2 Sessions

of 3 Hours

Each

6 Private equity - structuring of deals, calls and commitments,

investment strategies, water fall model for distribution of returns,

liquidation of investments and risk-return pay off

1 Session of

3 Hours

Each 7 Exchange traded funds - creation of ETF, deposition of assets,

selling of units, market making, trading in ETF units, liquidation of

ETF, types of ETFs, regulation of ETF

1 Session of

3 Hours

Each 8 Investment in real estate as an asset class, constraints, risk and

return, Government regulation, capital gains and taxation

Other alternative investment asset classes - collectibles - art, art

investment funds, valuation, protection, wine, storage, liquidation,

diamonds, mines and forests

2 Sessions

of 3 Hours

Each


of 3 Hours

Each

Reference Text:

ICICI Notes on Wealth Management

Wealth Management – Harold R Evensky

DIPLOMA IN RETAIL BANKING

SEM – II

Financial Markets, Products & Institutions 100 marks (15 Sessions of 3

Hours Each) Sem II


1 Financial Markets

Primary and Secondary Market

OTC and Exchange markets

Financial Securities Market Operations

Financial market activities - Speculation, Hedging and Arbitrage

2 Sessions

of 3 Hours

Each

2 Financial Institutions

Stock and Other Exchanges

Clearing House Mechanisms and Clearing Corporations

Commercial Banks and Investment Banks

Broking Houses

PMS, Hedge Funds

Mutual Funds and Insurance Firms

Other types of Financial Institutions

2 Sessions

of 3 Hours

Each

3 Financial Instruments

Equity

Debt

Derivatives - Forwards, Futures and Options

Equity and Equity Index derivatives

Fixed-Income and Interest Rate Derivatives

Currency Derivatives

Commodity Derivatives

Swaps and Swap options

Mortgages and MBS

2 Sessions

of 3 Hours

Each

4 Fixed Income Instruments

Time Value of Money

Bond Characteristics

Bond Types - Sovereign, Municipal, Agency, Corporate, etc.

Coupon Types - Zero Coupon, Fixed Rate Coupon, Floating Rate

Coupon

Risk-free Rate of Interest

Term Structure of Interest Rates

Yield to Maturity (YTM)

Bond Pricing Using Yield-to-Maturity (YTM)

Estimation of YTM from market data

Spot Rates / Zero Coupon Yield (ZCY)

Bond Pricing using ZCYC curve

Bootstrapping ZCYC from YTMC

Forward Rates

Yield Curve construction using methods like: bootstrapping, linear

interpolation, polynomial interpolations.

5 Sessions

of 3 Hours

Each

Pricing Floaters and Inverse Floaters

Fixed Income & Money Market returns : Coupon Rate, Current

Yield, Yield-To-Maturity, Discount Yield, Money Market Yield, Par

Yield, Bond-equivalent Yield, Yield-To-Call/Yield-To-Put

Price Yield Relationship

5 Fixed Income Risk Measures

Bond Duration, Modified Duration

Bond Convexity

Price Value of Basis Point (PVBP)

2 Sessions

of 3 Hours

Each


of 3 Hours

Each

Reference Text:

1. Financial Markets and Institutions by Anthony Saunders- Tata McGraw Hill Publication

2. SEBI Guidelines (available on net) on Mutual funds.

3. Handouts / Soft copies (‘Excel bond’) on some topics like Bond Mathematics, Portfolio

Management, Evaluation of Mutual Fund performance etc will be given.

4. Financial Institutions & Markets – Meir Kohn – Oxford Publications

5. Indian Financial System – Dr S.C Bihari – International Book House Ltd

6. Financial Markets & Institutions – Fredric S Mishkin, Stanley G Eakins – Pearson

Publications


Sem II


1 Risk: Definition




4 Sessions

of 3 Hours

Each


Calculation




4 Sessions

of 3 Hours

Each


i) Open position


iii) Deal size


v) Stop loss limits

5 Sessions

of 3 Hours

Each


of 3 Hours

Each

Reference Text



Microfinance & Financial Inclusion 100 marks (15 Sessions of 3 Hours Each)

Sem II


1 Introduction to microfinance 1 Session of

3 Hours

Each

2 Innovative models to support development 1 Session of

3 Hours

Each

3 Regulatory framework to deal with microfinance credit and

transactions 1 Session of

3 Hours

Each

4 Financial services offered to support microfinance initiatives 2 Sessions

of 3 Hours

Each

5 Evaluation of microfinance initiatives - profitability and efficiency 2 Sessions

of 3 Hours

Each

6 Loan disbursement and repayment schedules to suit the model 2 Sessions

of 3 Hours

Each

7 Risk management for microfinance 1 Session of

3 Hours

Each

8 Delinquancy issues in microfinance 1 Session of

3 Hours

Each

9 Example of microfinance models 2 Sessions

of 3 Hours

Each


of 3 Hours

Each

Reference Text

Microfinance and Financial Inclusion – S.Teki and R.K Mishra – Academic Press

Banking Technology & Payment Systems 100 marks (15 Sessions of 3 Hours

Each) Sem II

Banking Technology


1 Introduction to various process flows in banking transactions,

technology solutions to support these processes

Networking and security concerns in banking technology solutions,

public key infrastructure, SSL layer and other solutions

2 Sessions

of 3 Hours

Each

2 Introduction to solutions used in payment processing, messaging,

document archival, digital signature and fund transfers - RTGS,

IFSC

E-commerce, online banking transactions, confirmation and

payment gateways

1 Session of

3 Hours

Each

3 Credit cards, acquirers, MasterCard, Visa and AMEX networks,

payment processes, commissions, credit card frauds and prevention 1 Session of

3 Hours

Each

4 Core banking solutions, anywhere banking, branch operations

management in core banking environment, approvals, processing,

reconciliation and exception management

1 Session of

3 Hours

Each

5 Technology in delivery channels, data mining, usage and regulatory

restrictions

Disaster recovery, business continuity and roll back of transactions

in case of system failure

2 Sessions

of 3 Hours

Each

6 Threats, viruses and intrusion prevention security policies

1 Session of

3 Hours

Each

Reference Text

Modern Banking Technology by Firdos Temurasp Shroff – Northern Book Centre

Banking Services & Information Technology – R.K Uppal – New Century Publications

Payment Systems


7 Introduction to instruments used for payment - cheques, DD,

banker's cheque etc.

Holder in due course, cheque collection, clearing and discounting for

early payment

1 Session of

3 Hours

Each

8 Negotiable instruments act, concepts of negotiability, dishonour of

cheques and legal remedies

Electronic payment solutions, service providers, network security,

data security and account data protection

1 Session of

3 Hours

Each

9 Intrusion threats, identity theft, frauds and regulatory framework for

prevention and safety of payment gateways

Credit and debit card transactions, networks, security and protection

of card holder account, credit card defaults

1 Session of

3 Hours

Each

10 Automated clearing mechanish in US, business payments (NACHA)

Federal Reserve regulations - Uniform Commercial Code

1 Session of

3 Hours

Each

11 Emerging trends in electronic payment processing systems - eCash

etc. 1 Session of

3 Hours

Each


of 3 Hours

Each

Reference Text

Payment Systems – David B Humphrey – World Bank Publications

Electronic Payment Systems for E – Commerce – Donal O’ Mahony, Michael A Peirce, Hitesh

Tiwari

Payment Systems – James Brook – Aspen Publishers





e) Periodical class tests held in the given semester (20 Marks)

f) Presentations throughout the semester (10 Marks)

g) Attendance and Active participation in routine class instructional deliveries (05 Marks)

h) Overall Conduct as a responsible student, mannerism and articulation and exhibition of










Marks






Q2 (a) --------------- (5 Marks)

(b) --------------- (5 Marks)

(c) --------------- (5 Marks)


Q3 (a) --------------- (5 Marks)

(b) --------------- (5 Marks)

(c) --------------- (5 Marks)


Q4 (a) --------------- (5 Marks)

(b) --------------- (5 Marks)

(c) --------------- (5 Marks)


Q5 (a) --------------- (5 Marks)

(b) --------------- (5 Marks)

(c) --------------- (5 Marks)


Q6 (a) --------------- (5 Marks)

(b) --------------- (5 Marks)

(c) --------------- (5 Marks)


Q7 (a) --------------- (5 Marks)

(b) --------------- (5 Marks)

(c) --------------- (5 Marks)




Credit Point:




Learning Hours













100 Marks











acquired.





What is Grading?







learners.











Point Average)





Grades.





G: Grade

GP: Grade Points

C: Credits

CP: Credit Points




SGPA = ∑CG

------

∑C


designated as GPA)










calculated.





Courses In

Semesters

No of

Learning

Hours

Credits

Per

Course ( C

)

Marks

Obtained

(%)

Grade

Grade

Points

(G)

∑CG =

CxG

SGPA =

∑CG/∑C

Introduction to

Equity, Fixed

Income

Securities &

Derivatives

60 4 55 D 3 12

88/20=4.4

Introduction to

banking 60 4 60 C 4 16

Central bank

functions and

banking

regulations

60 4 70 A 6 24

Accounting and

bank

audit

60 4 80 O 7 28

Wealth

Management &

Alternative

Investments

60 4 50 E 2 8

Total 480 ∑C=20


88 Grade C

Passes





No of Learning

Hours


Marks Obtained

(%) Grade

Grade Points

(G)

∑CG = CxG

SGPA = ∑CG/∑C

Introduction to

Equity, Fixed

Income

Securities &

Derivatives

60 4 55 D 3 12

--------

Introduction to

banking 60 4 60 C 4 16

Central bank

functions and

banking

regulations

60 4 70 A 6 24

Accounting and

bank

audit

60 4 80 O 7 28

Wealth

Management &

Alternative

Investments

60 4 45 F 1 0

Total 480 ∑C=20


Grade F Fails




subject of Wealth Management & Alternative Investments, however, 1 Grade Point

is equal to Zero for CG calculations of failed learner/s in the concerned course/s.


Diploma in Capital Markets – Semester – I

Sr.

No. Subject


No. of

Sessions of

90 minutes

No. of

Sessions of

90 minutes

per week

Continu

ous

Assessm

ent

Semester

End

Examinati

on

Total

Marks

Duration

of Theory

Paper

No of

Credits

1

Introduction to

Equity, Fixed

Income

Securities &

Derivatives

30 2

40 UA 60 UA 100 3 4

2 Capital

Markets 30 2

40 UA

60 UA

100

3

4

3

Security

Analysis &

Portfolio

Management

30 2

40 UA 60 UA 100 3 4

4

Entities in

Financial

Services World

& Role of a

Finance

Executive

30 2

40 UA 60 UA 100 3 4

5

Analysis of

Financial

Statements

30 2

40 UA 60 UA 100 3 4



Diploma in Capital Markets – Semester – II

Sr.

No. Subject


No. of

Sessions of

90 minutes

No. of

Sessions of

90 minutes

per week

Continu

ous

Assessm

ent

Semester

End

Examinati

on

Total

Marks

Duration

of Theory

Paper

No of

Credits

1

Regulation of

Financial

Services

Companies

30 2

40 UA 60 UA 100 3 4

2

Introduction to

Risk

Management

30 2

40 UA

60 UA

100

3

4

3

Derivatives

Products &

Strategies

30 2

40 UA 60 UA 100 3 4

4 Commodities

Market 30 2

40 UA 60 UA 100 3 4

5 Dissertation

Project 100 Marks

4




Credits

Semester I 20

Semester II 20

Total 40

DIPLOMA IN CAPITAL MARKETS

SEM – I



Equity









in equity

2 Sessions

of 3 Hours

Each





analysis






1 Session of

3 Hours

Each

3







and borrowing

1 Session of

3 Hours

Each




leverage




risk

1 Session of

3 Hours

Each



immunization


market making




management




2 Sessions

of 3 Hours

Each








2 Sessions

of 3 Hours

Each

Derivatives
















calculations




2 Sessions

of 3 Hours

Each











bonus distribution

3 Sessions

of 3 Hours

Each





in US and UK





US in 2009-10



3 Sessions

of 3 Hours

Each


of 3 Hours

Each

Reference Text:


International.


Learning.





(2002)



Special Focus on:




Capital Markets 100 marks (15 Sessions of 3 Hours Each) Sem I


1 Functioning of a security exchange, auction, quote driven, hybrid,

central counterparty and assurance of safe settlement

Securities process flow - order placement, matching, confirmation,

T-T+1-T+2 activities

2 Sessions

of 3 Hours

Each

2 Front - middle and back office responsibilities to ensure settlement,

trade failure and correction mechanisms

Pre and post trade compliance, alerts, warnings, overrides, approval

workflows, investor-institutional-regulatory compliance

requirements, breach reporting, substitution

3 Sessions

of 3 Hours

Each

3

Post trade messaging - SWIFT format, investment manager and

broker functions, straight through processing service providers

Securities lending borrowing, automation in this process, effect of

corporate action, settlement of borrowing transactions, commissions

and charges

3 Sessions

of 3 Hours

Each

4 Reconciliation requirements, cash and securities exception

processing

Clearing, member functions and responsibilities

3 Sessions

of 3 Hours

Each

5 Settlement - custodian, back office and broker responsibilities, cash

settled transactions, physically settled transaction process flow

Comparison of processes followed in US, UK and Asia

2 Sessions

of 3 Hours

Each


of 3 Hours

Each

Reference Text

Capital Markets – Dr S Gurusamy – McGraw Hill Education

Capital Markets Institutions and Instruments – Frank J. Fabozzi, Franco Modigliani, Pearson

Education

Security Analysis and Portfolio Management 15 Sessions of 3 Hours 100

Marks Sem I


1 Risk And Return

Risk and return in each asset class - equity, fixed income, MF etc.

· Simple determination of stock market price using time value of

money - simple one

period and multi period case.

· Return on common stock under uncertainty, for a single stock

Expected Return,

Variance of Return, Concept of probability Distribution of Returns.

· Co-movement of two Assets returns, Measuring of Covariance

definition and Simple

Numerical Example, Correlation Coefficient

· Two asset portfolio case, expected return and variance of returns of

a Two asset

Portfolio Simple Numerical Example and Graphical Illustration

· Diversification of Risk, Systematic and Unsystematic risk

2 Sessions

of 3 Hours

2 MODERN PORTFOLIO THEORY

· General N-asset Portfolio Problem, Marches Model: Objectives

Function and Constraints,

Meaning of Efficient Frontier / Set, Concept of CML (Capital

Market Line), Concept of

Market Portfolio, Risk Free rate, Borrowing and Lending rates.

2 Sessions

of 3 Hours

3 SHARP'S SINGLE INDEX OR MARKET MODEL:

· How Asset Returns move with the market.

· Slope of security Market Line (SML)

· Properties of any asset on the line.

· Assumptions and some empirical evidence of CAPM

· Arbitrage pricing theory - Introduction

2 Sessions

of 3 Hours

Reference Text:

1. Security Analysis and Portfolio Management (6th Edn.) By Donald Fischer and Ronald


2. Securities Analysis and Portfolio Management , Prasanna Chandra, Tata McGraw Hill

(2002 )

4 CAPITAL ASSET PRICING MODEL:

· Statement of CAPM.




· Arbitrage pricing theory – Introduction

2 Sessions

of 3 Hours

5 EFFICIENT MARKET HYPOTHESIS (EMH) :

· Random walk theory

· Weak, Semi-Strong and Strong form

· Empirical Evidence of EMH

· Anomalies in the markets: Firm Size Effect, January Effect,

Monday Effect.

2 Sessions

of 3 Hours

6 Hedging, speculation and managing risk - return balance

Effect of taxation on investment decision, permissible deductions,

exemptions, tax free investments, tax lots and loss harvesting

Asset allocation basics - as per IPS, tolerance definitions,

substitution rules

Weighted average cost of capital, portfolio beta and risk premium

Using fundamental analysis for security selection and technical

analysis for timing of orders

Investor behaviour analysis - cyclic nature, need induced decisions,

tax dependencies, risk and return expectations, modeling using

intelligence derived from behavioural analysis

2 Sessions

of 3 Hours

7 PORTFOLIO PERFORMANCE MEASURES

· Sharp Index

· Treynor Index

· Jensen's Measure

· Empirical Test of Mutual Fund Performance & EMH

1 Session of

3 Hours


of 3 Hours

Entities in Financial Services World and Role of a Finance Executive 100

marks (15 Sessions of 3 Hours Each) Sem I


1 Buy side and sell side companies, their functions and inter

dependencies

Investment advisors - regulation, qualification requirements, exams,

registration requirements

Interaction with an Investment Advisor

2 Sessions

of 3 Hours

Each

2 Brokers and dealers - regulatory supervision by SEBI, exchange

supervision, reporting, commision and charges, infrastruture

requirements, exams and qualifications

Interaction with a Broker Dealer

2 Sessions

of 3 Hours

Each

3

Depository - maintenance of securities accounts, role of depository

participants, connectivity with clearing members and custodians

Interaction with a depository official

Exchange and clearing corporation - order matching mechanisms,

settlement processes, responsibilities and regulatory supervision

3 Sessions

of 3 Hours

Each

4 Interaction with an official from Exchange

Custodian - securities safe keeping, reconciliation, settlement

assurance, corporate action processing

Interaction with a Custodian

Reference data providers - information vending, charges and

responsibilities

3 Sessions

of 3 Hours

Each

5 Role of a Finance Executive

Treasury manager

Wealth Manager

Business Analyst in an IT Firm

Risk and Compliance Manager

3 Sessions

of 3 Hours

Each


of 3 Hours

Each

Reference Text

Financial Institutions & Markets – Meir Kohn – Oxford Publications

Indian Financial System – Dr S.C Bihari – International Book House Ltd

Financial Markets & Institutions – Fredric S Mishkin, Stanley G Eakins – Pearson Publications

Financial Markets and Institutions by Anthony Saunders- Tata McGraw Hill Publication



Education

Analysis of financial statements 100 Marks (15 Sessions of 3 Hours Each) Sem

I


1 Revision of Balance Sheet and P&L statement fundamentals.

Indian Accounting Standards

Indian Accounting Standard vs US GAAP

(This would also cover the manipulations often done by

companies to show higher profits)

2 Sessions of 3

Hours Each

2 Cash Flow Analysis

Measuring operating / financing and investing Cash flows.

Cash flows and life cycle state of a company

Cash flows and financial flexibility (linkages to dividend policy

and over retention of profits)

2 Sessions of 3

Hours Each

3 Assessing Business Performance

Operational efficiency ratios (Gross profit, net profit margins

and various turnover

ratios)

Liquidity ratios – Current Ratio / Acid test

Profitability ratios, Valuation Ratios

EPS/ ROE/ ROCE/ Total Shareholder returns, Linkages

between ROE & ROCE &

optimal capital structure and determinants of PE multiple,

Price to book value, EV/EBDITA

multiple.

Capitalization ratios- Debt Equity, Debt to Assets.

Du-pont Analysis

Coverage ratios and credit analysis and ratings

(The emphasis will be on correct interpretation and correct

measurement i.e. with necessary

accounting adjustments for these ratios).

3 Sessions of 3

Hours Each

4 Free Cash flows to Equity / Firm

From earnings to free cash flows

Adjustment from standard accounting to correctly measure

free cash flow.

Capitalisation leasing expense and R&D expenditure, correct

treatment for amortization

expense and deferred taxes

Measuring correct ROE & ROC after adjusting for inter-

corporate investments.

Implication of the above mentioned adjustments on

fundamental valuations / company and

PE or Price / Book Value or EBDITA multiple.

2 Sessions of 3

Hours Each

5 Introduction to Advance Accounting Concepts

Merger and acquisition

Consolidation of balance sheets

Deferred taxes, minority interest

NOPAT and adjustments to NOPAT from EVA perspective

to measure correct economic cash flows.

Economic value added (EVA) and linkages between value of

a company and EVA.

Equity Analysis, Stock Splits and Buy back

Managing Productivity of Corporate Capital

Composite Index for measuring productivity

3 Sessions of 3

Hours Each

6 Forecasting FCFE / FCFF and Security Valuation 1 Session of 3

Hours

7 Case Studies and Presentations 2 Sessions of 3

Hours Each

Reference Text

Financial Management by Prasanna Chandra

Financial Management by Khan and Jain.

Corporate Finance by Brealey – Myers

DIPLOMA IN CAPITAL MARKETS

SEM – II

Regulation of Financial Services Companies 100 marks (15 Sessions of 3

Hours Each) Sem II


1 India - SEBI reporting requirements, Companies Act, Reserve Bank

of India FS regulations 3 Sessions

of 3 Hours

Each 2 Europe - MiFID - best execution, EU passporting, transparency and

level playing field 3 Sessions

of 3 Hours

Each

3

US - Dodd Frank Act - consumer protection, OTC derivatives to

exchanges, centralised data repository, Swap execution facility (SEF) 3 Sessions

of 3 Hours

Each

4 International - BASEL - provisioning, introduction to credit, market

and operational risk, reporting to regulators as per norms

International - FATCA - identification of accounts and investments

by US nationals

4 Sessions

of 3 Hours

Each


of 3 Hours

Each

Reference Text

Bare Acts

Corporate Laws by Dr Anil Kumar – International Book House Ltd

SEBI Manual Taxmann


Sem II


1 Risk: Definition




4 Sessions

of 3 Hours

Each


Calculation




4 Sessions

of 3 Hours

Each


i) Open position


iii) Deal size


v) Stop loss limits

5 Sessions

of 3 Hours

Each


of 3 Hours

Each

Reference Text



Derivatives Products & Strategies 100 marks (15 Sessions of 3 Hours Each)

Sem II


1 Exotic Options

Asian Options, Bermudan Options, Forward Start Options

Barrier Options, Shout Options, Chooser Options

2 Sessions

of 3 Hours

Each

2 Lookback Options, Cliquet / Reverse Cliquet Options

Napolean Options, Rachet Options

Exchange Options, Binary / Digital Options

3 Sessions

of 3 Hours

Each

3 Rainbow Options, Basket Options

Spread Options, Compound Options

Trading strategies involving derivatives for hedging, arbitrage and

speculation

3 Sessions

of 3 Hours

Each

4 Bull and Bear Spreads

Calendar Spread

Diagonal Spread

2 Sessions

of 3 Hours

Each

5 Straddle

Strangle

Strap

Strip

2 Sessions

of 3 Hours

Each

6 Call-Put Parity Conversion-reversal 1 Session of

3 Hours

Each


of 3 Hours

Each

Reference Text

1. Options, Future & Other Derivatives – by John. C.Hull

2. Applied Derivatives – Richard .J. Rendleman, Jr

Special Focus on:



3. Option Volatility & Pricing – Sheldon Naten Berg

An excellent book from options trading perspective. A handout on option Greeks will be given to

students at the appropriate time.

4. The New Options Market – Max Ansbacher

Again an excellent book from option trading perspective. A handout on trading strategies will

be given to the students.

5. Derivatives – The Wild beast of Finance – Alfred Steinherr

This books deals in detail with the following well-known disasters with Derivatives.

Metallgesellschaft – (Rollover Risk)

o Barings (LESSON’S – CASE) – Highly speculation & Leverages position in Derivatives

o Hedge Funds & the collapse of LTCM (Long Term Capital Management)

Derivatives & Risk Management – Rajiv Srivastava – Oxford Publications

Derivatives & Risk Management – Sundaram Janakiramanan – Pearson Publications

Options , Futures & Other Derivatives – John C Hull, Sankarshan Basu – Pearson Publications

Commodities Market 15 Sessions of 3 Hours 100 Marks Sem II


1 Introduction to Commodity Derivatives

Introduction to derivatives, products, participants and functions,

derivatives markets, difference between commodity and financial

derivatives. Evolution of commodity exchanges, global commodity

derivatives exchanges, latest developments. The NCDEX platform –

Structure, exchange membership, risk management, clearing and

settlement system and commodities traded on the NCDEX platform.

2 Sessions

of 3 Hours

2 Historical changes and growth of global and domestic Commodities

derivatives markets

FCR Act 1952 and Regulatory structure of Commodities Derivatives

Markets in India

1 Session of

3 Hours

3 Application of Commodity Futures

Instruments available for trading - Forward contracts, Introduction to

futures and options, Payoff for F&O, using futures versus options;

Pricing commodity futures – Investment assets versus consumption

assets, Cost of carry model, Futures basis; Using commodity futures

for hedging, Speculation and arbitrage.

2 Sessions

of 3 Hours

4 Trading, Clearing and Settlement

Trading - Futures trading system, Entities in the trading system,

Commodity futures trading cycle, Order types and trading,

Parameters, Margins for trading in futures, Charges, Hedge limits;

Clearing and settlement - Clearing, Settlement, Risk management,

Margining at NCDEX and Standard Portfolio Analysis of Risk

(SPAN).

3 Sessions

of 3 Hours

5 Issues in Agricultural Commodities Markets

Issues in Non-Agricultural Commodities Markets

1 Session of

3 Hours

6 Commodities Derivative Exchanges and design of the

markets

Issues related to Spot price and present practices of

commodities exchanges

Clearing House operations and Risk Management

Procedures

1 Session of

3 Hours

7 Delivery Related Issues like delivery centers, deliverable

varieties, assaying

Issues related to monitoring and surveillance by Exchanges

and Regulator

Role of intermediaries in Commodities Markets

1 Session of

3 Hours

8 Basis Risk and its importance in pricing

Agricultural Commodity Futures trading pattern in

Exchange – Case study

Non- Agricultural Commodity Futures trading pattern in


International commodity indices and as a investment tool for

investors

2 Sessions

of 3 Hours


of 3 Hours

Recommended books :

1. Commodities Rising , Jeffery M. Christian , John Wiley & Sons, 2006

2. Dow Jones – Irwin Guide to Commodities Trading , Bruce Gould , Author House, 2003

3. Commodity Fundamentals , Ronald Spurga, John Wiley & Sons, 2006

4. Commodity Futures & Financial Markets, Louis Philips, 1990

5. The Encyclopedia of Commodity & Financial Spreads , Steve Moore, John Wiley & Sons,

2008

6. International Commodity Markets & The Role of Cartels , Mark s. Lechair, M.E. Sharpe

,2001

7. Commodity Options , Larry D. Spears, Market Place Books, 1993

8. Training The Pits: Technical Approach to Commodity Trading , Robert M. Barnes, John

Wiley & Sons,

9. Commodity Options, Terry S. Mayer , Prentice Hall ,1993

10. Structured Products Vol. II Equity , Commodity , Credit & New Markets , Satyajit Das

John Wiley & Sons, 2005

11. Breaking Through Success : A Commodity Investor ‘s Guide Book, Patrick Lafferty &

Nell Sloane

12. Managing Commodity Price Risk & Developing Countries , Stijn Claessens & Ronald C.

Dunkan, John Hopkins University Press, 1994

13. The Commodities Glossary , Commodity Futures Trading Corporation, International Law

& Taxation ,2005





i) Periodical class tests held in the given semester (20 Marks)

j) Presentations throughout the semester (10 Marks)

k) Attendance and Active participation in routine class instructional deliveries (05 Marks)

l) Overall Conduct as a responsible student, mannerism and articulation and exhibition of










Marks






Q2 (a) --------------- (5 Marks)

(b) --------------- (5 Marks)

(c) --------------- (5 Marks)


Q3 (a) --------------- (5 Marks)

(b) --------------- (5 Marks)

(c) --------------- (5 Marks)


Q4 (a) --------------- (5 Marks)

(b) --------------- (5 Marks)

(c) --------------- (5 Marks)


Q5 (a) --------------- (5 Marks)

(b) --------------- (5 Marks)

(c) --------------- (5 Marks)


Q6 (a) --------------- (5 Marks)

(b) --------------- (5 Marks)

(c) --------------- (5 Marks)


Q7 (a) --------------- (5 Marks)

(b) --------------- (5 Marks)

(c) --------------- (5 Marks)




Credit Point:




Learning Hours













100 Marks











acquired.





What is Grading?







learners.











Point Average)





Grades.





G: Grade

GP: Grade Points

C: Credits

CP: Credit Points




SGPA = ∑CG

------

∑C


designated as GPA)










calculated.





Courses In

Semesters

No of

Learning

Hours

Credits

Per

Course ( C

)

Marks

Obtained

(%)

Grade

Grade

Points

(G)

∑CG =

CxG

SGPA =

∑CG/∑C

Introduction to

Equity, Fixed

Income

Securities &

Derivatives

60 4 55 D 3 12

88/20=4.4

Capital Markets 60 4 60 C 4 16

Security

Analysis &

Portfolio

Management

60 4 70 A 6 24

Entities in

Financial

Services World

& Role of a

Finance

Executive

60 4 80 O 7 28

Analysis of

Financial

Statements

60 4 50 E 2 8

Total 480 ∑C=20


88 Grade C

Passes





No of Learning

Hours


Marks Obtained

(%) Grade

Grade Points

(G)

∑CG = CxG

SGPA = ∑CG/∑C

Introduction to

Equity, Fixed

Income

Securities &

Derivatives

60 4 55 D 3 12

--------

Capital Markets 60 4 60 C 4 16

Security

Analysis &

Portfolio

Management

60 4 70 A 6 24

Entities in

Financial

Services World

& Role of a

Finance

Executive

60 4 80 O 7 28

Analysis of

Financial

Statements

60 4 45 F 1 0

Total 480 ∑C=20


Grade F Fails




subject of Analysis of Financial Statements, however, 1 Grade Point is equal to Zero

for CG calculations of failed learner/s in the concerned course/s.


Diploma in Investment Management – Semester – I

Sr.

No. Subject


No. of

Sessions of

90 minutes

No. of

Sessions of

90 minutes

per week

Continu

ous

Assessm

ent

Semester

End

Examinati

on

Total

Marks

Duration

of Theory

Paper

No of

Credits

1

Introduction to

Equity, Fixed

Income

Securities &

Derivatives

30 2

40 UA 60 UA 100 3 4

2

Wealth

Management

& Alternative

Investments

30 2

40 UA

60 UA

100

3

4

3

Security

Analysis &

Portfolio

Management

30 2

40 UA 60 UA 100 3 4

4

Entities in

Financial

Services World

& Role of a

Finance

Executive

30 2

40 UA 60 UA 100 3 4

5

Analysis of

Financial

Statements

30 2

40 UA 60 UA 100 3 4



Diploma in Investment Management – Semester – II

Sr.

No. Subject


No. of

Sessions of

90 minutes

No. of

Sessions of

90 minutes

per week

Continu

ous

Assessm

ent

Semester

End

Examinati

on

Total

Marks

Duration

of Theory

Paper

No of

Credits

1

Regulation of

Financial

Services

Companies

30 2

40 UA 60 UA 100 3 4

2

Introduction to

Risk

Management

30 2

40 UA

60 UA

100

3

4

3

Derivatives

Products &

Strategies

30 2

40 UA 60 UA 100 3 4

4 Commodities

Market 30 2

40 UA 60 UA 100 3 4

5 Dissertation

Project 100 Marks

4




Credits

Semester I 20

Semester II 20

Total 40

DIPLOMA IN INVESTMENT MANAGEMENT

SEM – I



Equity









in equity

2 Sessions

of 3 Hours

Each





analysis






1 Session of

3 Hours

Each

3







and borrowing

1 Session of

3 Hours

Each




leverage




risk

1 Session of

3 Hours

Each



immunization


market making




management




2 Sessions

of 3 Hours

Each








2 Sessions

of 3 Hours

Each

Derivatives



risk management in absence of central counterparty, flexibility in 2 Sessions

of 3 Hours













calculations




Each











bonus distribution

3 Sessions

of 3 Hours

Each





in US and UK




3 Sessions

of 3 Hours

Each


US in 2009-10




of 3 Hours

Each

Reference Text:


International.


Learning.





(2002)



Special Focus on:




Wealth Management and Alternative Investments 100 marks (15 Sessions of

3 Hours Each) Sem I

Wealth Management


1 Functions of investment advisor, independent advisors, wire house 2 Sessions

wealth managers, custodians offering white labled solutions to

advisors, software solutions for advisors

Wealth management client categories - mass affluent, high net

worth, ultra high net worth, unified households

of 3 Hours

Each

2 Client on boarding - profiling, financial planning, suitability

assessment - aggressive, moderate etc., client preferences,

restrictions, return expectations versus risk appetite

Structure the cash flow forecasting and define the goals, milestones,

liabilities etc.

1 Session of

3 Hours

Each

3

Types of wealth management account structures - separately

managed accounts, unified managed accounts, overlay portfolio

management, sleeves and open architecture wealth management,

portfolio manager models, pooled funds

Technology absorption in wealth management - use of social media

in wealth management, mobility solutions and advantages to

investment advisors

2 Sessions

of 3 Hours

Each

4 Asset allocation, active passive investment styles - advantages,

correlation in security returns and risk diversification, standard

deviation of each asset class and security

Portfolio modeling using multiple asset classes, monitoring

tolerances and rebalancing, substitution rules

Portfolio performance measurement, attribution and reporting

2 Sessions

of 3 Hours

Each

Alternative Investments


5 Hedge funds - concept, strategies, debacle of hedge funds in 2009-

10 market crisis, how hedge funds employed quantitative methods to

generate alpha, how regulation caught up with the hedge fund

industry

2 Sessions

of 3 Hours

Each

6 Private equity - structuring of deals, calls and commitments,

investment strategies, water fall model for distribution of returns,

liquidation of investments and risk-return pay off

1 Session of

3 Hours

Each 7 Exchange traded funds - creation of ETF, deposition of assets,

selling of units, market making, trading in ETF units, liquidation of

ETF, types of ETFs, regulation of ETF

1 Session of

3 Hours

Each 8 Investment in real estate as an asset class, constraints, risk and

return, Government regulation, capital gains and taxation

Other alternative investment asset classes - collectibles - art, art

investment funds, valuation, protection, wine, storage, liquidation,

diamonds, mines and forests

2 Sessions

of 3 Hours

Each


of 3 Hours

Each

Reference Text:

ICICI Notes on Wealth Management

Wealth Management – Harold R Evensky

Security Analysis and Portfolio Management 15 Sessions of 3 Hours 100

Marks Sem I


1 Risk And Return

Risk and return in each asset class - equity, fixed income, MF etc.

· Simple determination of stock market price using time value of

money - simple one

period and multi period case.

· Return on common stock under uncertainty, for a single stock

Expected Return,

Variance of Return, Concept of probability Distribution of Returns.

· Co-movement of two Assets returns, Measuring of Covariance

definition and Simple

Numerical Example, Correlation Coefficient

· Two asset portfolio case, expected return and variance of returns of

a Two asset

Portfolio Simple Numerical Example and Graphical Illustration

· Diversification of Risk, Systematic and Unsystematic risk

2 Sessions

of 3 Hours

2 MODERN PORTFOLIO THEORY

· General N-asset Portfolio Problem, Marches Model: Objectives

Function and Constraints,

Meaning of Efficient Frontier / Set, Concept of CML (Capital

Market Line), Concept of

Market Portfolio, Risk Free rate, Borrowing and Lending rates.

2 Sessions

of 3 Hours

3 SHARP'S SINGLE INDEX OR MARKET MODEL:

· How Asset Returns move with the market.




· Arbitrage pricing theory - Introduction

2 Sessions

of 3 Hours

Reference Text:

1. Security Analysis and Portfolio Management (6th Edn.) By Donald Fischer and Ronald


2. Securities Analysis and Portfolio Management , Prasanna Chandra, Tata McGraw Hill

(2002 )

4 CAPITAL ASSET PRICING MODEL:

· Statement of CAPM.




· Arbitrage pricing theory – Introduction

2 Sessions

of 3 Hours

5 EFFICIENT MARKET HYPOTHESIS (EMH) :

· Random walk theory

· Weak, Semi-Strong and Strong form

· Empirical Evidence of EMH

· Anomalies in the markets: Firm Size Effect, January Effect,

Monday Effect.

2 Sessions

of 3 Hours

6 Hedging, speculation and managing risk - return balance

Effect of taxation on investment decision, permissible deductions,

exemptions, tax free investments, tax lots and loss harvesting

Asset allocation basics - as per IPS, tolerance definitions,

substitution rules

Weighted average cost of capital, portfolio beta and risk premium

Using fundamental analysis for security selection and technical

analysis for timing of orders

Investor behaviour analysis - cyclic nature, need induced decisions,

tax dependencies, risk and return expectations, modeling using

intelligence derived from behavioural analysis

2 Sessions

of 3 Hours

7 PORTFOLIO PERFORMANCE MEASURES

· Sharp Index

· Treynor Index

· Jensen's Measure

· Empirical Test of Mutual Fund Performance & EMH

1 Session of

3 Hours


of 3 Hours

Entities in Financial Services World and Role of a Finance Executive 100

marks (15 Sessions of 3 Hours Each) Sem I


1 Buy side and sell side companies, their functions and inter

dependencies

Investment advisors - regulation, qualification requirements, exams,

registration requirements

Interaction with an Investment Advisor

2 Sessions

of 3 Hours

Each

2 Brokers and dealers - regulatory supervision by SEBI, exchange

supervision, reporting, commision and charges, infrastruture

requirements, exams and qualifications

Interaction with a Broker Dealer

2 Sessions

of 3 Hours

Each

3

Depository - maintenance of securities accounts, role of depository

participants, connectivity with clearing members and custodians

Interaction with a depository official

Exchange and clearing corporation - order matching mechanisms,

settlement processes, responsibilities and regulatory supervision

3 Sessions

of 3 Hours

Each

4 Interaction with an official from Exchange

Custodian - securities safe keeping, reconciliation, settlement

assurance, corporate action processing

Interaction with a Custodian

Reference data providers - information vending, charges and

responsibilities

3 Sessions

of 3 Hours

Each

5 Role of a Finance Executive

Treasury manager

Wealth Manager

Business Analyst in an IT Firm

Risk and Compliance Manager

3 Sessions

of 3 Hours

Each


of 3 Hours

Each

Reference Text

Financial Institutions & Markets – Meir Kohn – Oxford Publications

Indian Financial System – Dr S.C Bihari – International Book House Ltd

Financial Markets & Institutions – Fredric S Mishkin, Stanley G Eakins – Pearson Publications

Financial Markets and Institutions by Anthony Saunders- Tata McGraw Hill Publication



Education

Analysis of financial statements 100 Marks (15 Sessions of 3 Hours Each) Sem I


1 Revision of Balance Sheet and P&L statement fundamentals.

Indian Accounting Standards

Indian Accounting Standard vs US GAAP

(This would also cover the manipulations often done by

companies to show higher profits)

2 Sessions of 3

Hours Each

2 Cash Flow Analysis

Measuring operating / financing and investing Cash flows.

Cash flows and life cycle state of a company

Cash flows and financial flexibility (linkages to dividend policy

and over retention of profits)

2 Sessions of 3

Hours Each

3 Assessing Business Performance

Operational efficiency ratios (Gross profit, net profit margins

and various turnover

ratios)

Liquidity ratios – Current Ratio / Acid test

Profitability ratios, Valuation Ratios

EPS/ ROE/ ROCE/ Total Shareholder returns, Linkages

between ROE & ROCE &

optimal capital structure and determinants of PE multiple,

Price to book value, EV/EBDITA

multiple.

Capitalization ratios- Debt Equity, Debt to Assets.

Du-pont Analysis

Coverage ratios and credit analysis and ratings

(The emphasis will be on correct interpretation and correct

measurement i.e. with necessary

accounting adjustments for these ratios).

3 Sessions of 3

Hours Each

4 Free Cash flows to Equity / Firm

From earnings to free cash flows

Adjustment from standard accounting to correctly measure

free cash flow.

Capitalisation leasing expense and R&D expenditure, correct

treatment for amortization

expense and deferred taxes

Measuring correct ROE & ROC after adjusting for inter-

corporate investments.

Implication of the above mentioned adjustments on

fundamental valuations / company and

PE or Price / Book Value or EBDITA multiple.

2 Sessions of 3

Hours Each

5 Introduction to Advance Accounting Concepts

Merger and acquisition

Consolidation of balance sheets

Deferred taxes, minority interest

NOPAT and adjustments to NOPAT from EVA perspective

to measure correct economic cash flows.

Economic value added (EVA) and linkages between value of

a company and EVA.

Equity Analysis, Stock Splits and Buy back

Managing Productivity of Corporate Capital

Composite Index for measuring productivity

3 Sessions of 3

Hours Each

6 Forecasting FCFE / FCFF and Security Valuation 1 Session of 3

Hours

7 Case Studies and Presentations 2 Sessions of 3

Hours Each

Reference Text

Financial Management by Prasanna Chandra

Financial Management by Khan and Jain.

Corporate Finance by Brealey – Myers

DIPLOMA IN INVESTMENT MANAGEMENT

SEM – II

Regulation of Financial Services Companies 100 marks (15 Sessions of 3

Hours Each) Sem II


1 India - SEBI reporting requirements, Companies Act, Reserve Bank

of India FS regulations 3 Sessions

of 3 Hours

Each 2 Europe - MiFID - best execution, EU passporting, transparency and

level playing field 3 Sessions

of 3 Hours

Each

3

US - Dodd Frank Act - consumer protection, OTC derivatives to

exchanges, centralised data repository, Swap execution facility (SEF) 3 Sessions

of 3 Hours

Each

4 International - BASEL - provisioning, introduction to credit, market

and operational risk, reporting to regulators as per norms

International - FATCA - identification of accounts and investments

by US nationals

4 Sessions

of 3 Hours

Each


of 3 Hours

Each

Reference Text

Bare Acts

Corporate Laws by Dr Anil Kumar – International Book House Ltd

SEBI Manual Taxmann


Sem II


1 Risk: Definition




4 Sessions

of 3 Hours

Each


Calculation




4 Sessions

of 3 Hours

Each


i) Open position


iii) Deal size


v) Stop loss limits

5 Sessions

of 3 Hours

Each


of 3 Hours

Each

Reference Text



Derivatives Products & Strategies 100 marks (15 Sessions of 3 Hours Each)

Sem II


1 Exotic Options

Asian Options, Bermudan Options, Forward Start Options

Barrier Options, Shout Options, Chooser Options

2 Sessions

of 3 Hours

Each

2 Lookback Options, Cliquet / Reverse Cliquet Options

Napolean Options, Rachet Options

Exchange Options, Binary / Digital Options

3 Sessions

of 3 Hours

Each

3 Rainbow Options, Basket Options

Spread Options, Compound Options

Trading strategies involving derivatives for hedging, arbitrage and

speculation

3 Sessions

of 3 Hours

Each

4 Bull and Bear Spreads

Calendar Spread

Diagonal Spread

2 Sessions

of 3 Hours

Each

5 Straddle

Strangle

Strap

Strip

2 Sessions

of 3 Hours

Each

6 Call-Put Parity Conversion-reversal 1 Session of

3 Hours

Each


of 3 Hours

Each

Reference Text

1. Options, Future & Other Derivatives – by John. C.Hull

2. Applied Derivatives – Richard .J. Rendleman, Jr

Special Focus on:



3. Option Volatility & Pricing – Sheldon Naten Berg

An excellent book from options trading perspective. A handout on option Greeks will be given to

students at the appropriate time.

4. The New Options Market – Max Ansbacher

Again an excellent book from option trading perspective. A handout on trading strategies will

be given to the students.

5. Derivatives – The Wild beast of Finance – Alfred Steinherr

This books deals in detail with the following well-known disasters with Derivatives.

Metallgesellschaft – (Rollover Risk)

o Barings (LESSON’S – CASE) – Highly speculation & Leverages position in Derivatives

o Hedge Funds & the collapse of LTCM (Long Term Capital Management)

Derivatives & Risk Management – Rajiv Srivastava – Oxford Publications

Derivatives & Risk Management – Sundaram Janakiramanan – Pearson Publications

Options , Futures & Other Derivatives – John C Hull, Sankarshan Basu – Pearson Publications

Commodities Market 15 Sessions of 3 Hours 100 Marks Sem II


1 Introduction to Commodity Derivatives

Introduction to derivatives, products, participants and functions,

derivatives markets, difference between commodity and financial

derivatives. Evolution of commodity exchanges, global commodity

derivatives exchanges, latest developments. The NCDEX platform –

Structure, exchange membership, risk management, clearing and

settlement system and commodities traded on the NCDEX platform.

2 Sessions

of 3 Hours

2 Historical changes and growth of global and domestic Commodities

derivatives markets

FCR Act 1952 and Regulatory structure of Commodities Derivatives

Markets in India

1 Session of

3 Hours

3 Application of Commodity Futures

Instruments available for trading - Forward contracts, Introduction to

futures and options, Payoff for F&O, using futures versus options;

Pricing commodity futures – Investment assets versus consumption

assets, Cost of carry model, Futures basis; Using commodity futures

for hedging, Speculation and arbitrage.

2 Sessions

of 3 Hours

4 Trading, Clearing and Settlement

Trading - Futures trading system, Entities in the trading system,

Commodity futures trading cycle, Order types and trading,

Parameters, Margins for trading in futures, Charges, Hedge limits;

Clearing and settlement - Clearing, Settlement, Risk management,

Margining at NCDEX and Standard Portfolio Analysis of Risk

(SPAN).

3 Sessions

of 3 Hours

Recommended books :

1. Commodities Rising , Jeffery M. Christian , John Wiley & Sons, 2006

2. Dow Jones – Irwin Guide to Commodities Trading , Bruce Gould , Author House, 2003

3. Commodity Fundamentals , Ronald Spurga, John Wiley & Sons, 2006

4. Commodity Futures & Financial Markets, Louis Philips, 1990

5. The Encyclopedia of Commodity & Financial Spreads , Steve Moore, John Wiley & Sons,

2008

5 Issues in Agricultural Commodities Markets

Issues in Non-Agricultural Commodities Markets

1 Session of

3 Hours

6 Commodities Derivative Exchanges and design of the

markets

Issues related to Spot price and present practices of

commodities exchanges

Clearing House operations and Risk Management

Procedures

1 Session of

3 Hours

7 Delivery Related Issues like delivery centers, deliverable

varieties, assaying

Issues related to monitoring and surveillance by Exchanges

and Regulator

Role of intermediaries in Commodities Markets

1 Session of

3 Hours

8 Basis Risk and its importance in pricing

Agricultural Commodity Futures trading pattern in


Non- Agricultural Commodity Futures trading pattern in


International commodity indices and as a investment tool for

investors

2 Sessions

of 3 Hours


of 3 Hours

6. International Commodity Markets & The Role of Cartels , Mark s. Lechair, M.E. Sharpe

,2001

7. Commodity Options , Larry D. Spears, Market Place Books, 1993

8. Training The Pits: Technical Approach to Commodity Trading , Robert M. Barnes, John

Wiley & Sons,

9. Commodity Options, Terry S. Mayer , Prentice Hall ,1993

10. Structured Products Vol. II Equity , Commodity , Credit & New Markets , Satyajit Das

John Wiley & Sons, 2005

11. Breaking Through Success : A Commodity Investor ‘s Guide Book, Patrick Lafferty &

Nell Sloane

12. Managing Commodity Price Risk & Developing Countries , Stijn Claessens & Ronald C.

Dunkan, John Hopkins University Press, 1994

13. The Commodities Glossary , Commodity Futures Trading Corporation, International Law

& Taxation ,2005





m) Periodical class tests held in the given semester (20 Marks)

n) Presentations throughout the semester (10 Marks)

o) Attendance and Active participation in routine class instructional deliveries (05 Marks)

p) Overall Conduct as a responsible student, mannerism and articulation and exhibition of










Marks






Q2 (a) --------------- (5 Marks)

(b) --------------- (5 Marks)

(c) --------------- (5 Marks)


Q3 (a) --------------- (5 Marks)

(b) --------------- (5 Marks)

(c) --------------- (5 Marks)


Q4 (a) --------------- (5 Marks)

(b) --------------- (5 Marks)

(c) --------------- (5 Marks)


Q5 (a) --------------- (5 Marks)

(b) --------------- (5 Marks)

(c) --------------- (5 Marks)


Q6 (a) --------------- (5 Marks)

(b) --------------- (5 Marks)

(c) --------------- (5 Marks)


Q7 (a) --------------- (5 Marks)

(b) --------------- (5 Marks)

(c) --------------- (5 Marks)




Credit Point:




Learning Hours













100 Marks











acquired.





What is Grading?







learners.











Point Average)





Grades.





G: Grade

GP: Grade Points

C: Credits

CP: Credit Points




SGPA = ∑CG

------

∑C


designated as GPA)










calculated.





Courses In

Semesters

No of

Learning

Hours

Credits

Per

Course ( C

)

Marks

Obtained

(%)

Grade

Grade

Points

(G)

∑CG =

CxG

SGPA =

∑CG/∑C

Introduction to

Equity, Fixed

Income

Securities &

Derivatives

60 4 55 D 3 12

88/20=4.4

Wealth

Management &

Alternative

Investments

60 4 60 C 4 16

Security

Analysis &

Portfolio

Management

60 4 70 A 6 24

Entities in

Financial

Services World

& Role of a

Finance

Executive

60 4 80 O 7 28

Analysis of

Financial

Statements

60 4 50 E 2 8

Total 480 ∑C=20


88 Grade C

Passes





No of Learning

Hours


Marks Obtained

(%) Grade

Grade Points

(G)

∑CG = CxG

SGPA = ∑CG/∑C

Introduction to

Equity, Fixed

Income

Securities &

Derivatives

60 4 55 D 3 12

--------

Wealth

Management &

Alternative

Investments

60 4 60 C 4 16

Security

Analysis &

Portfolio

Management

60 4 70 A 6 24

Entities in

Financial

Services World

& Role of a

Finance

Executive

60 4 80 O 7 28

Analysis of

Financial

Statements

60 4 45 F 1 0

Total 480 ∑C=20


Grade F Fails




subject of Analysis of Financial Statements, however, 1 Grade Point is equal to Zero

for CG calculations of failed learner/s in the concerned course/s.


4.33 dip in comm. banking, retail banking, capital market, invst

Documents