University of Mumbai
Syllabu s and
Question Paper Pattern of
Indian Financial System
(Elective Course)
Of
Second Year
Semester III and I V
Under Choice Based Credit, Grading and
Semester System
With effect from Academ ic Year-2017- 2018
Board of studies – Business Economics
1 Board o f Studies-in-Business Economics, University of Mumbai
Objective: INDIAN FINANCIAL SYSTEM.
A Financial System plays a vital role in the economic growth of a
country. It intermediates between the flow of funds belonging to those
who save a part of their income and those who invest in productive
assets. It facilitates the transfer and allocation of funds, efficiently and
effectively. The Indian Financial System has metamorphosed in to a
substantive, competitive and cost effective system and hence, it is
essential to study in depth about its structure and recent developments.
2 Board o f Studies-in-Business Economics, University of Mumbai
Revised Syllabus of Course of B. Com. Progr amm e at
Semester III
With E ffect from the Acad emic Year 2017- 2018
Business Economics
Indian Financial System
List of Modul es
Sr.
No. Modu les No.of
Lectures
1
Overview of the Indian Financial System
10
2
Indian Banking System
10
3
Development Banks
15
4
Interest Rate Structure
10
Total
45
3 Board o f Studies-in-Business Economics, University of Mumbai
-
Sr.No. Modules / Units
1 OVERVIEW OF INDIAN FINANCIAL SYSTEM
Defin ition and Meaning of Financial S ystem
Components of the Financial System: Institutions, Markets and S ervices; Financial
System and Economic D evelopment,
Kinds of F inance – Rudimentary F inance, Direct and Indirect F inance
2 INDIAN BANKING SYSTEM
Commercial Banks – Introduction, Its role in Project Finance and Working Capital
Finance, Structure of Commercial Banking System in India; Credit Creation Process of
Commercial Banks;
The Reserve Bank of India: Developmental Functions; Instruments of Monetary and
Credit Control, Transmission channels of M onetary P olicy.
3 DEVELOPMENT BANKS
Concept of Development Bank and their needs in Indian Financial System –
Difference with Commercial Banks – Major Development B anks and their F unctions
(IFCI, IDBI, ICICI, EXIM Bank, SIDBI, SFCs, NABARD)
Other Financial Institutions: Introduction; Life Insurance Corporation of I ndia,
General Insurance Corporation of India, Unit Trust of India, Mutual Funds - Introduction
and their role in C apital Market D evelopment.
4 INTEREST RATE STRUCTURE
Meaning – Gross and Net Interest Rate – their difference s
Nominal and Real I nterest R ate – their differen ce, Differential I nterest R ate
Causes of V ariation of Interest R ate
Relationship between Interest R ate and E conomic P rogress
Administered and M arket determined I nterest R ate
Recent C hanges in I nterest S tructure in India
4 Board o f Studies-in-Business Economics, University of Mumbai
Reference Books
Meir Kohn, Financial Institution and Market, Oxford University Press. New Delhi.
Khan, M. Y., Indian Financial System -Theory and Practice, TMH, New Delhi.
Bhole, L. M., Financial Markets and Institutions, T ata McGraw Hill, New Delhi.
Pathak, B., Indian Financial System -Pearson, New Delhi.
Mukher jee, Ghosh and Roy, Indian Fina ncial System and Financial Market Operations, Dey Book
Clifford, Gomez, Financial Markets, Institutions and Financial Services,
Khan and Jain, Financial Services, Tata McGraw Hill
Singh, J.K., Venture Capital Financing in India. Dhanpat Rai and Company, New Delhi.
Annual Reports of Major Financial Institutions in India.
Simha, S.L.N. Development Banking in India. Madras: Institute of Financial Management and
5 Board o f Studies-in-Business Economics, University of Mumbai
QUESTION PAPER PATTERN
Semester III
Maximum Marks : 100 Marks
Time : 3 Hours
Note : 1) Attempt all Questions
2) All Questions carry equal marks
Question
No Particulars Marks
Q-1
Objective Questi ons:
A) Explain the following Concepts (Any Five from Eight) (Two from
each module)
B) Multiple Choice Questions (Any T en from Twelve) (Three from
each Module)
20Marks
10 Marks
10 Marks
Q-2
A) Full L ength Q uestion
B) Full L ength Q uestion
C) Full L ength Q uestion
20Mark s
Q-3
A) Full L ength Q uestion
B) Full L ength Q uestion
C) Full L ength Q uestion
20Mark s
Q-4
A) Full L ength Q uestion
B) Full L ength Q uestion
C) Full L ength Q uestion
20Mark s
Q-5
A) Full L ength Q uestion
B) Full L ength Q uestion
C) Full L ength Question
20Mark s
6 Board o f Studies-in-Business Economics, University of Mumbai
Revised Sy llabus of Courses of B. Com. Program me at
Semester IV
with Effect from the Acade mic Year 20 17-2018
Business Economics
Financial Market Operation
List of Modul es
Sr.
No. Modu les No.of
Lectures
1
Money Market
10
2
Capital Market
15
3
Debt Market
10
4
Financial Services
10
Total
45
7 Board o f Studies-in-Business Economics, University of Mumbai
Objective: FINANCIAL MARKET OPERATIONS
It has been a long journey for the Indian Financial Market. Now it is
organized, fairly integrated, mature, more global and modernized. The
Indian Financial Markets are now getting integrated with global
markets. Therefore, it is necessary to study the Indian Financial Market
Operations in an organized manner.
8 Board o f Studies-in-Business Economics, University of Mumbai
Sr.No. Modules / Units
1 MONEY MARKET
Concept, Structure of Indian Money Market, Acceptance Houses, Discount Houses, Call
Money Market, Recent trends of Indian Money Markets
2 CAPITAL MARKET
Concept of Security Market, Primary & Secondary Markets -Functions & Role, Functionaries of
Stock Exchanges-Brokers, Sub - Brokers, Jobbers, Consultants, Institutional Investors & NRIs .
Regional and Modern Stock Exchanges, International Stock Exchanges, Demutualization of
Exchanges, Comparison between NSE and BSE, Raising of funds from International Markets:
ADRs and GDRs, FCCB and Euro Issues; Investors’ Protection Grievances c oncerning Stock
Exchange dealings & their removal, Grievance Redressal Cell in Stock Exchanges, Role of
SEBI .
3 DEBT MARKET
Debt Market: Introduction and Meaning, Market for Government/Debt Securities in India,
Secondary Market for G overnment/ Debt Securities, Over S ubscription and D evelopment of
Government Securities, Government securities issued by State Governments, Municipal Bonds,
Corporate Bonds vs. Government Bonds
4 FINANCIAL SERVICES
Merchant Banking -Functions & Role, Credit Rating -Concept & Types, Functions & Limitations,
Leasing Companies, Venture Capital Funds, M icro Finance.
9 Board o f Studies-in-Business Economics, University of Mumbai
Reference Books
Khan, M. Y., Indian Financial System -Theory and Practice, T ata McGraw Hill (TMH)
Bhole, L. M., Financial Markets and Institutions, TMH
Nayak and Sana, Indian Financial System and Financ ial Market Operations
Gurusamy , Financial Services, TMH
Pathak, B., Indian Financial System, Pearson
Goel, Sandeep. (2012). Financial services.PHI
10 Board o f Studies-in-Business Economics, University of Mumbai
QUESTION PAPER PATTERN
Semester IV
Maximum Marks : 100 Marks
Time : 3 Hours
Note : 1) Attempt all Question s
2) All Question s carry equal marks
Question
No Particulars Marks
Q-1
Objective Questi ons:
A) Explain the following Concepts (Any Five from Eight) (Two from
each module)
B) Multiple Choice question (Any T en from Twelve) (Three from each
Module)
20Marks
10 Marks
10 Marks
Q-2
A) Full L ength Q uestion
B) Full L ength Q uestion
C) Full L ength Q uestion
20Mark s
Q-3
A) Full L ength Q uestion
B) Full L ength Q uestion
C) Full L ength Q uestion
20Mark s
Q-4
A) Full L ength Q uestion
B) Full L ength Q uestion
C) Full L ength Q uestion
20Mark s
Q-5
A) Full L ength Q uestion
B) Full L ength Q uestion
C) Full L ength Question
20Mark s
11 Board o f Studies-in-Business Economics, University of Mumbai