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SYLLABUS |
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Two Modules from NSE’s Certification in Financial Markets
o CAPITAL MARKET
o DERIVATIVES
Security Analysis and Portfolio Management (Core Module)
Course Objective
1. To develop analytical and interpretive skills of students in evaluating different investment opportunities. 2. To familiarize the students with the theory of portfolios and its construction. 3. To provide an understanding of the performance evaluation of managed portfolios. 4. To enable the students to obtain available certifications in the Capital Market.
1. Introduction to Securities 2. Markets for Securities and taxes 3. Risk and return 4. Economic analysis 5. Industry analysis 6. Company analysis: measuring earnings 7. Company analysis: forecasting earnings 8. Company analysis: applied valuation 9. Bond analysis: returns and system risk 10. Bond analysis: unsystematic risk 11. Bond Management strategies 12. Options 13. Rights, warrants and Convertibles 14. Futures 15. Technical Analysis 16. Efficient –market theory 17. Portfolio analysis 18. Portfolio selection 19. Capital Market theory 20. Managed Portfolios and performance measurements
Term Projects
a) Investments Topic Research Project b) Equity Investment Analysis Project Equity Portfolio
c) Option Evaluation Project Options Portfolio (Simulation)
d) Futures Evaluation Project Futures Portfolio (Simulation)
Reference:
Recommended textbook
Fisher E. Donald & Jordan R. Ronald,
“Security Analysis and Portfolio Management”, 6th Edition, Prentice Hall of India.
INSURANCE
Insurance is basically a sharing device. The contribution of many is used to pay the losses suffered
by unfortunate few. In India, Insurance Industry was the monopoly of the public sector till the year 2000.
Now the door is opened to private sector as well. There is a great tremendous scope of growth in this
segment now.
Objectives
1. To understand the need for insurance 2. To know the different classes of Life Insurance 3. To be able to explain the benefits of Insurance. 4. To understand the role of an underwriter.
§ Purpose & Need of Insurance § Role of Insurance in the Development of the Economy. § Fundamental Principle of Life Insurance § Traditional Products § Insurance documents § Underwriting § Claims § Group Insurance/Pension Plans § Procedure for becoming an agent
Project
“With” & “Without Profit” Policies
DEPOSITORY
This is an initiative of CSE Institute of Capital Market to accelerate the pace of professionalisation
of the depository operations. This module equips the candidates seeking employment with depository
participants helps in fast dematerialization of securities.
CORE SERVICES
§ Account opening § Transmission & Nomination § Demat § Trading and Settlement
SPECIAL SERVICES
§ Pledge & Hypothecation § Stock Lending & Borrowing § Corporate Actions § Public Issues § Debt Instruments and Govt. Securities
MUTUAL FUNDS
Mutual Funds now represents perhaps the most appropriates investment opportunity for most investors.
As the financial markets became more sophisticated and complex, investors need a financial intermediary
who provides the required knowledge and professional expertise in successful investing. In USA- the
birthplace of Mutual Funds- the fund industry has overtaken the Banking industry. The Indian Mutual
Fund industry has already started opening up many of the exciting investment opportunities to Indian investors.
Objective
To provide an understanding of the performance evaluation of Mutual Funds in India.
To evaluate the students to because a professional Financial Planners.
§ The concept & Role of M/Fs § History of M/Fs in India § Types of M/Fs § Fund Structure & constituents § The offer Document § The Key Information Memorandum § Selecting the right Investment Products for Investors § Comparison of Investment products § Measuring of Risk In M/Fs § Recommending model Portfolios & selecting the right funds.
Project
Measuring and evaluating M/F performance
When an investor entrusts his savings to Mutual Funds, naturally he hopes to increase his wealth
by saving the value of his investment grow. Having understood the conceptual and operating aspects
of Mutual Funds, it is important to analyze the issues involved in the evaluation of fund Performance.
Presentation
Fund Distributors as Financial Advisors
The world over, becoming a financial planner is one of the most lucrative and sought after
professions. In US alone, there are an estimated over 2,50,000 financial planners who have
achieved some form of financial certification and proficiency in giving financial advices to their
clients. In India too, there is a tremendous opportunity for financial planning to register explosive growth.
MARKETING OF FINANCIAL SERVICES
Course Objective
With the onset of liberalization and globalization of Indian economy the field of financial services has earned a place among major contributors of economic activity in our country and hence this course.
Market Segmentation – service product development and management – distribution –supply and demand management – Pricing of services – yield management of services– promotion of services – Trends in financial services – issues – policies – ethics in services marketing. Reference:
Khan M. Y., “Financial Services”, Tata McGraw Hill.
Woodruffe Helen, “ Services Marketing”, Pitman Publn, London. Meidan Arthur, “ Marketing financial Services”, McMillan India. Martin Tony, “ Financial Services Direct Marketing”, McGraw Hill
Rust Ronald T., “ Services Marketing”, Addison Wesley Publications Co. COMMODITY DERIVATIVES
This course is aimed at students who wish a deeper understanding of potential impact of financial commodities contracts on the risk of a business. It covers a variety of tools of financial risk management with emphasis on their use.
Difference between Commodity and Financial derivative
· Warehousing · Quality of underlying assets · Physical settlement
Instruments available for trading
Pricing commodity futures
Using commodity futures
Ref: Hull john C., “ Options, Futures and Other Derivative Securities”
Eiton Edwin.J. And Gruber Martin J. Modern Portfolio Theory and Investment Analysis DAY TRADING I. Objectives 1) To provide a rigorous training programme before a person can confidently engage in this technique. 2) To emphasize how to take advantages of daily price movements in the Stock Market. 3) To emphasize the importance of providing liquidity in the market 4) To understand the respectability of day trading as a profession and its scope for employment in India and abroad. II. What is day trading? III. What is the need for day trading?
IV. Eligibility criteria for trading training.
V. Specific features of Day trading.
VI. Why Day trading is suitable for Brokers, sub brokers and investors through CSBL?
VII. Why CSE/CSBL project Day trading as a profession?
VIII. Preliminary steps in Day trading.
IX. Difference between Day trading and Speculation.
X. Characteristics of DAY TRADERS.
XI. The Basic principles of Day trading.
XII. Development of DAY TRADERS.
1. Theory Classes. 2. Practical Classes. 3. Evaluation of trainees. 4. Day trader Association.
GENERAL ECONOMICS India has initiated a process of Economic reforms. This rapid process invited and necessitated macro and micro level changes. A study of the economic transition is essential to understand various functions of our systems, which help contribute the growth of the nation. Though the scope and study has certain constraints, the topics have been selected to give an introduction to the national Economy. Session I : Transition of Indian Economy
Session II: Growth Period
Session III: Budget
Session IV: Financial Institutions
Session V: Investment
Recommended Reading:
Indian Economy: Ruddar Dutt & K P M Sundharam Publisher: S. Chand.
Financial Dailies & Publications Back Office and Tax Implication
BACK OFFICE
As per Regulation 17(1) of SEBI (Stock Brokers & Sub-Brokers) Regulations 1992 every broker shall maintain the required books of accounts, records and documents relating to his business. So a proper and effective back office system is very important for a broker. To serve this purpose the systems departments of Cochin Stock Exchange Ltd developed a user-friendly software known as IFAST (Integrated Financial Accounting Solutions for traders). This software is very simple to operate and at the same time very effective also. Practical Training
Students will be give opportunity to participate training on this software.
Tax implications.
Income Tax Act 1961: Preliminary, Definitions, Basis of Charge, Heads of income etc.
Special stress on Income from Business or Profession, Capital Gain ( Short term and Long term) and Dividend income.
Reference:
Recommended Textbook: Taxman’s Direct taxes written by Dr. Vinod K Singhenia and Dr. Kapil Singhenia
Regulating Framework
Securities Contracts (Regulation) Act 1956, SEBI Act 1992
The Depositories Act 1996. The Companies Act 1956.
TOOLS OF FINANCIAL ANALYSIS AND CONTROL
1) FINANCIAL RATIO ANALYSIS, 669
Introduction to financial analysis, 669 Liquidity ratios, 673 Debt ratios, 670 Coverage Ratios, 681 Profitability ratios, 682 Predictive power of financial ratios, 685 Inflation and financial analysis, 686 Summary, 691 Problems, 691 Selected references, 727
2) FUNDS ANALYSIS, PROPORTIONAL ANALYSIS AND FINANCIAL FORECASTING, 699
Financial Planning, 699, Source and use of funds, 700 Common Size and index analyses, 706 Cash budgeting, 710 Pro forma statements, 717 Summary, 720 Problems, 721 Selected references, 727
3) WORKING CAPITAL MANAGEMENT AND EFFICIENT MARKET CONSIDERATIONS, 341 Introduction, 341 Liquidity and its role, 342 Receivables and inventories, 346 Current liabilities, 349 Implications for working capitals, 351 summary, 381 Problems, 382 Selected References, 354
4) MAKING CAPITAL STRUCTURE DECISIONS, 281
EBIT-EPS analysis, 281 Cash flow ability to service debt, 285 Other methods of analysis, 290 Timing and flexibility, 292 Summary,294 Problems, 294 Selected references, 297
5) VALUATIONS OF A FIRM’S STOCK, 45
Measurement of portfolio risk, 46 Portfolio analysis and selection,50 Capital-asset pricing model, 54 Expected return for individual security, 60 Additional factors affecting returns, 64 Summary, 71 PROBLEMS, 72 Selected references, 76
6) RISK ANALYSIS IN CAPITAL BUDGETING, 142 Introduction, 142 Operating leverage and risk, 144 Measuring risk: correlation of cash flows over time, 147 Dependence of cash flows over time, 153 A simulation approach, 156 Measuring risk: Multiple investment projects, 158 Information needed to analyze an acquisition, 162 Summary, 164 Appendix A: Decision –tree approach for sequential decisions, 165 Appendix B: Abandonment value and capital budgeting, 169 Problems, 173 Selected References, 180 Reference:
M C Shukla
T S Grawal& M C Shukla
T S Grawal
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