Financial Services and Capital Markets (CA Paper-6B) CA Final Group 2

Taught by Faculties:


 PAPER – 6 B: FINANCIAL SERVICES AND CAPITAL MARKETS (One paper – Three hours – 100 Marks)

    (a) To gain knowledge of financial services rendered by intermediaries and banks and their role and activities in the financial market in general and                    capital markets in particular;
    (b) To acquire the ability to apply such knowledge to address issues in practical scenarios. Contents:
     1. Global Financial Markets
         (i) Introduction to Global Financial Market
         (ii) Role of Financial Market in Economic Development of a country
         (iii) Stakeholders in Financial Market (Domestic and Global)
         (iv) Indian Financial Market scenario
2. Impact of various Policies of Financial Markets
         (i) Credit Policy of RBI
         (ii) Fed Policy
         (iii) Inflation Index, CPI, WPI, etc.
3. Capital Market  Primary
       (i) New Issue Market – Domestic and Global
       (ii) Private Placement , QIP, Disinvestment
       (iii) Right Issue
4. Capital Market  Secondary
       (i) Secondary Market
       (ii) Stock Market Operations
       (iii) Indian Debt Market
5. Money Market
       (i) Basics of Money Market
       (ii) Money Market Participants
       (iii) Money Market Instruments
       (iv) Repo and Reverse Repo
       (v) CRR, SLR
       (vi) MIBOR, LIBOR
       (vii) Government Securities Market
6. Institutions and Intermediaries
       (i) Depository
       (ii) Stock and Commodity Exchanges  Indian and Global
       (iii) Intermediaries
       (iv) Institutional Investors
       (v) FPIs
       (vi) Custodians
       (vii) Clearing Houses
7. Commodity Market
       (i) What are Commodity Markets
       (ii) Role of Commodity Markets
       (iii) Commodity Market in India
       (iv) Application of Derivative in Commodities
       (v) Global Commodities Exchanges
8. Banking as source of Capital including NBFCs
(i) Concept of Project Financing
       (ii) Working Capital Management
       (iii) Reverse Mortgage
9. Mutual Funds
       (i) Meaning
       (ii) Evolution
       (iii) Types
       (iv) Performance Measures, NAV
       (v) Mutual Fund Organisation
       (vi) Advantages and Disadvantages of Mutual Fund
       (vii) Exchange Traded Funds (ETFs)
       (viii) Real Estate Investment Trusts (ReITs)
       (ix) Infrastructure Investment Trusts (Invits)
10. Private Equity
       (i) Meaning and Classification
           a) Venture Capital
           b) Buyouts
           c) Special Cases
           d) Hurdle rate
           e) Paid in Capital
           f) Term Sheet 
                Cost of Investing in Private Equity
                Exit Routes 
                Valuation of Private Equity Transactions 
                Private Equity Funds (Distribution of returns in General Partner and Limited Partners)
11. Investment Banking
       (i) Concept
        (ii) Functions
        (iii) Challenges
        (iv) Developments in Investment Banking
        (v) Merchant Banking and issue management
12. Credit Rating
        (i) Introduction
        (ii) Rating Services
        (iii) Objectives and types
        (iv) Uses
        (v) Credit Rating Process
        (vi) Credit Rating Methodology
        (vii) Rating Revisions
        (viii) Credit Rating Agencies in India and abroad
        (ix) Limitations with case studies
13. Treasury Operations
        (i) Raising and Deployment of Funds
        (ii) Risk Management
14. Risk Management
(i) Preventive Controls
        (ii) Early Signals
        (iii) Credit Risk
15. Credit Derivatives
(i) Credit Default Swaps
        (ii) Collateralized Debt Obligations (CDO) 
        (iii) Pricing of Credit Derivative Instruments
16. Leasing Decisions
17. Factoring
18. SEBI Guidelines
 Following topic are covered in the paper of Strategic Financial Management (Paper – 2) and Corporate and Economic Laws (Paper – 4) also forms the part of the syllabus
      Fixed Income Securities (Valuation of Bonds/ Debentures) 
      Interest Rate Risk  
      The Securities and Exchange Board of India Act, 1992 
      Legislative framework on listing agreements  
      The Securities Contract (Regulation) Act, 1956 
      Chapter III-D of the RBI Act, 1934