MBA (FINANCE)

(Course code – 37)

CURRICULUM
1st YEAR - I SEMESTER

Sl.No. Code Course Title

1 MBCP 1001 Management Concepts
2 MBCP 1002 Managerial Economics
3 MBCP 1003 Accounting for Managers
4 MBCP 1004 Business Environment
5 MBCP 1005 Research Methodology
6 MBCP 1006 Organisational Behaviour
7 MBCP 1007 Business Law
1st YEAR - II SEMESTER

1 MBCP 2001 Financial Management

2 MBCP 2002 Marketing Management
3 MBCP 2003 Human Resources Management
4 MBCP 2004 Operations Research
5 MBCP 2005 Strategic Management
6 MBCP 2006 Business Ethics
7 MBCP 2007 Operations Management
2nd YEAR - III SEMESTER

1 MBFM 3001 Strategic Financial Management

2 MBFM 3002 Banking and Indian Financial System
3 MBFM 3003 Merchant Banking and Financial Services
4 MBFM 3004 Project Management
5 MBFM 3005 Management Accounting
6 Elective – I (Syllabus will be updated soon)
7 Elective – II (Syllabus will be updated soon)
2nd YEAR - IV SEMESTER

1 MBFM 4001 Investment and Portfolio Management

2 MBFM 4002 Global Financial Management
3 MBFM 4003 International Trade and Finance
4 MBFM 4004 Security Market Operations
5 MBFM 4005 Financial Derivatives
6 MBFM 4006 Project Work
7 Elective – III (Syllabus will be updated soon)
8 Elective – IV (Syllabus will be updated soon)
MBA – I Semester Paper Code: MBCP 1001
PAPER: I
MANAGEMENT CONCEPTS
Objectives

• Providing conceptual understanding of Management Concepts

• Familiarizing the students with the contemporary issues in Management
• Enable them to apply the concepts in the management organization

UNIT - I
Introduction to Management - Nature and Functions of Management - Levels in Management
- Social Responsibilities of Business - Managerial Skills – Manager and Environment - An
Overview of Staffing, Directing and Controlling Functions

UNIT – II
Planning - Steps in Planning Process - Short Range and Long Range Planning - Flexibility in
Planning - Characteristics of a sound Plan - Management by Objectives (MBO) - Policies and
Strategies - Scope and Formulation- Decision Making - Techniques and Processes.

UNIT – III
Organising - Organisation Structure and Design - Delegation of Authority and Decentralisation
– Line and Staff Relationships - Emerging Trends in Corporate Structure, Strategy and Culture
- Impact of Technology on Organisational design - Formal and Informal Organisation.

UNIT – IV
Communication – Types and Process of Communication - Barriers of Communication -
Communication Effectiveness - Organisational Creativity and Innovation Entrepreneurial
Management - Management of Innovation

UNIT – V
Comparative Management Styles and approaches - Best Management Practices across the
world - Japanese Management Practices - Management of Diversity - Benchmarking

References:

Koontz, Weirich &Aryasri, PRINCIPLES OF MANAGEMENT, Tata McGraw-Hill, New

Delhi, 2004
Tripathi & Reddy, PRINCIPLES OF MANAGEMENT, Tata McGraw-Hill, New Delhi, 2008
Laurie Mullins, MANAGEMENT AND ORGANISATIONAL BEHAVIOUR, Pearson,
New Delhi, 2007
Meenakshi Gupta, PRINCIPLES OF MANAGEMENT, PHI Learning, New Delhi, 2009
MBA – I Semester Paper Code: MBCP 1002
PAPER – II
MANAGERIAL ECONOMICS

Objectives
➢ To introduce the economic concepts
➢ To familiarize with the students the importance of economic approaches in
managerial decision making
➢ To understand the applications of economic theories in business decisions

UNIT – I
General Foundations of Managerial Economics - Economic Approach - Circular Flow of
Activity - Nature of the Firm - Objectives of Firms - Demand Analysis and Estimation -
Individual, Market and Firm demand - Determinants of demand - Elasticity measures and
Business Decision Making - Demand Forecasting.
UNIT-II
Law of Variable Proportions - Theory of the Firm - Production Functions in the Short and
Long Run - Cost Functions – Determinants of Costs – Cost Forecasting - Short Run and Long
Run Costs –Type of Costs - Analysis of Risk and Uncertainty.
UNIT-III
Product Markets -Determination Under Different Markets - Market Structure – Perfect
Competition – Monopoly – Monopolistic Competition – Duopoly - Oligopoly - Pricing and
Employment of Inputs Under Different Market Structures – Price Discrimination - Degrees of
Price Discrimination.
UNIT-IV
Introduction to National Income – National Income Concepts - Models of National Income
Determination - Economic Indicators - Technology and Employment - Issues and Challenges
– Business Cycles – Phases – Management of Cyclical Fluctuations - Fiscal and Monetary
Policies.
UNIT – V
Macro Economic Environment - Economic Transition in India - A quick Review -
Liberalization, Privatization and Globalization - Business and Government - Public-Private
Participation (PPP) - Industrial Finance - Foreign Direct Investment(FDIs).

REFERENCES

Yogesh Maheswari, MANAGERIAL ECONOMICS, PHI Learning, NewDelhi, 2005Gupta G.S.,

MANAGERIAL ECONOMICS, Tata McGraw-Hill, New DelhiMoyer &Harris, MANAGERIAL
ECONOMICS, Cengage Learning, NewDelhi, 2005Geetika, Ghosh & Choudhury, ,
MANAGERIAL ECONOMICS, Tata McGrawHill, NewDelhi, 2011
MBA - I Semester Paper Code: MBCP 1003
PAPER –III
ACCOUNTING FOR MANAGERS

Objectives
➢ To acquaint the students with the fundamentals principles of Financial, Cost and
Management Accounting
➢ To enable the students to prepare, Analyse and Interpret Financial Statements and
➢ To enable the students to take decisions using Management Accounting Tools.

UNIT-I
Book-keeping and Accounting – Financial Accounting – Concepts and Conventions – Double Entry
System – Preparation of Journal, Ledger and Trial Balance – Preparation of Final Accounts –Trading,
Profit and Loss Account and Balance Sheet with adjustment entries, simple problems only - Capital
and Revenue Expenditure and Receipts.

UNIT-II
Depreciation – Causes – Methods of Calculating Depreciation – Straight Line Method, Diminishing
Balance Method and Annuity Method - Ratio Analysis – Uses and Limitations – Classification of
Ratios – Liquidity, Profitability, Financial and Turnover Ratios – Simple problems only.
UNIT-III
Funds Flow Analysis – Funds From Operation, Sources and Uses of Funds, Preparation of Schedule
of Changes in Working Capital and Funds Flow Statements – Uses and Limitations - Cash Flow
Analysis – Cash From Operation – Preparation of Cash Flow Statement – Uses and Limitations –
Distinction between Funds flow and Cash Flow – only simple problems
UNIT-IV
Marginal Costing - Marginal cost and Marginal costing - Importance - Break-even Analysis - Cost
Volume Profit Relationship – Application of Marginal Costing Techniques, Fixing Selling Price,
Make or Buy, Accepting a foreign order, Deciding sales mix.

UNIT-V
Cost Accounting - Elements of Cost - Types of Costs - Preparation of Cost Sheet – Standard Costing
– Variance Analysis – Material Variances – Labour Variances – simple problems related to Material
and Labour Variances only
[Note: Distribution of Questions between Problems and Theory of this paper must be
60:40 i.e., Problem Questions: 60 % & Theory Questions: 40 %]

REFERENCES
Jelsy Josheph Kuppapally, ACCOUNTING FOR MANAGERS, PHI, Delhi, 2010.
Paresh shah, BASIC ACCOUNTING FOR MANAGERS, Oxford, Delhi, 2007
Ambrish Gupta, FINANCIAL ACCOUNTING FOR MANAGEMENT, Pearson, Delhi, 2004
Narayanaswamy R, FINANCIAL ACCOUNTING , PHI, Delhi, 2011
MBA – I Semester Paper Code: MBCP 1004
PAPER: IV
BUSINESS ENVIRONMENT

Objectives
• To acquaint students with the issues of domestic and global environment in
whichbusiness has to operate
• To understand the opportunity and challenges of global business environment
• To relate the Impact of Environment on Business in an integrated manner
• To provide an understanding of the role of business in society

UNIT – I Business and its environment

Dynamics of Business and its Environment – Definition, Types of Environments. - Corporate

Governance and Social Responsibility - Ethics in Business. – Business Ethics in India

UNIT – II Economic System

Economic Systems and Management Structure - Family Management to Professionalism -

Resource Base of the Economy - Land, Forest, Water, Fisheries, Minerals - Environmental
Issues.

UNIT – III Infrastructure and current issues in Business Environment

Infrastructure - Economic- Social, Demographic Issues, Political context - Productivity Factors,

Human Elements and Issues for Improvement -.

UNIT – IV Global trends in Business and Management

Global Trends in Business and Management – International Relations Multi-National

Companies, Multi-National Companies in India,
UNIT – V Foreign Capital and Collaboration

Foreign Capital, Needs for Foreign Capital, Trends in Indian Industry, Foreign Development
Investment, FDI and the Indian Stock market

References:

Keith-Davis & William Frederick, BUSINESS AND SOCIETY, McGraw-Hill, Tokyo.Iran

Worthington and Chris Britton, THE BUSINESS ENVIRONMENT, Prentice Hall
Namita Gopal, BUSINESS ENVIRONMENT, 2nd Edition, Tata McGraw Hill Education Pvt. Ltd. New
Delhi, 2010
MBA-I Semester Paper code: MBCP 1005
PAPER-V
RESEARCH METHODOLOGY

Objectives
➢ To enable the students to know about the information needs of Management
➢ To introduce the concept of Scientific Research and the methods of conducting
Scientific Enquiry and
➢ To introduce the Statistical Tools of Data Analysis.

UNIT-I
Research – Qualities of Researcher – Components of Research Problem – Various Steps in Scientific
Research – Types of Research – Hypotheses Research Purposes - Research Design – Survey Research
– Case Study Research.

UNIT-II
Data Collection – Sources of Data – Primary Data – Secondary Data - Procedure Questionnaire –
Sampling methods – Merits and Demerits – Experiments – Observation method – Sampling Errors -
Type-I Error & Type-II Error.

UNIT-III
Statistical Analysis – Introduction to Statistics – Probability Theories – Conditional Probability,
Poisson Distribution, Binomial Distribution and Properties of Normal Distributions – Hypothesis
Tests – One Sample Test – Two Sample Tests / Chi-Square Test, Association of Attributes - Standard
deviation – Co-efficient of variations .

UNIT-IV
Statistical Applications – Correlation and Regression Analysis – Analysis of Variance – Partial and
Multiple Correlation – Factor Analysis and Conjoint Analysis – Multifactor Evaluation – Two-Factor
Evaluation Approaches.

UNIT-V
Research Reports – Structure and Components of Research Report – Types of Report, characteristics
of Good Research Report, Pictures and Graphs, Introduction to SPSS.

[Note: Distribution of Questions between Problems and Theory of this paper must be
40:60 i.e., Problem Questions: 40 % & Theory Questions: 60 %]

REFERENCES
Panneerselvam, R., RESEARCH METHODOLOGY, Prentice Hall of India, New Delhi, 2004.
Kothari CR , RESEARCH METHODOLOGY-METHODS AND TECHNIQUES, New Wiley
Eastern Ltd., Delhi, 2009.
MBA – I Semester Paper Code: MBCP 1006
PAPER: VI
ORGANISATIONAL BEHAVIOUR

Objectives

• To understand and appreciate the fact that why & how of human behaviour in
organisations is critical for its success and to orient the managers - to-be to develop
people skills to make and run the work-place effective, innovative and stake-holder
centric.

UNIT - I
Organisational Behaviour: Introduction, Definition, Nature & Scope - Basic Concepts of OB
- Individual & Organisational Image and Self Image -self-esteem & self-efficacy-
Theoretical constructs and models of Organisational Behaviour.

UNIT – II
Perception and Learning - Personality and Individual Differences - Motivation and Job
Performance - Values, Attitudes and Beliefs - Stress Management

UNIT – III
Group Dynamics - Leadership - Styles - Approaches - Power and Politics in Organisation

UNIT – IV
Organisational Structure - Organisational Climate and Culture - Organisational Change and
Development.

UNIT – V
Trends in Organisational Behaviour – Consciousness – Conscience Management –
Organisational Vision and Employee alignment with vision- Gender Sensitivity – Competency
Level and behavioral Dimensions

References:

Fred Luthans, ORGANISATIONAL BEHAVIOUR, Tata McGraw-Hill, New Delhi

Stephen Robbins, ORGANISATIONAL BEHAVIOUR, Pearson, New Delhi
MBA – I Semester Paper Code: MBCP 1007
PAPER: VII
BUSINESS LAW

Objectives
• To introduce the statutory provision that affects the business decision
• To provide legal understanding and exposure to the important commercial laws
• To understand the legal framework related to contract
• To familiarise about legal aspects about negotiable instruments
• To understand the legal regulations about the company

UNIT – I The Indian Contract Act, 1872

Law of Contract - Agreement - Offer - Acceptance - Consideration - Capacity of Contract
Contingent Contract - Quasi Contract - Performance - Discharge - Remedies to breach of
Contract.
UNIT – II The Indian Partnership Act, 1932 & Sales of Goods Act 1930
Definition of Partnership and its essentials, Rights and duties of Partners: Authority of a
Partner, Minor as a Partner, Registration of a firm, Dissolution of Firms. Sales of Goods –
Definition of a Contract of Sales, Essentials of a Contract of Sales of Goods, Kinds of
Goods,
UNIT – III The Negotiable Instruments Act, 1832, Law of Insurance
Negotiable Instruments - Notes, Bills, Cheques - Crossing - Endorsement - Holder in due course
- Holder in value - Contract of Agency. Law of Insurance: Fundamental Principles of Law of
Insurance, Types of Policies, Kinds of Losses
UNIT – IV The Indian Companies Act, 2013
Company - Formation - Memorandum - Articles - Prospectus - Shares - Debentures -Directors
Appointment - Powers and Duties - Meetings - Proceedings – Management - Accounts - Audit
Oppression and Mismanagement - Winding up.
UNIT –V Factory Act, Industrial Dispute Act, Minimum Wages Act & Workmen
Compensation Act, 1923
Factory Act – Licensing and Registration of Factories, Health, Safety and Welfare measures -
Industrial Disputes Act – Objects and scope of the Act, Effects of Industrial Dispute,
Administration under the Act.

References:
Kapoor G,K & Dhamija S, COMPANY LAW, 17th Edition, Taxman Publication, Pvt. Limited,
NewDelhi, 2014
Daniel Albuquerque, LEGAL ASPECTS OF BUSINESS, 2nd edition, Oxford University Press,
NewDelhi, 2013
Pathak, LEGAL ASPECTS OF BUSINESS, Tata McGraw- Hill Publishing Company Limited,
NewDelhi, 2010.
M.M. Sulphey & Azhar Basheer, LAWS FOR BUSINESS, PHI Learning Pvt. Ltd. New Delhi, 2011.
MBA - II Semester Paper code: MBCP 2001
PAPER-VIII
FINANCIAL MANAGEMENT

Objectives
➢ To know the various sources of finance
➢ To understand the various uses for finance and
➢ To familiarize oneself with the techniques used in financial management.
UNIT-I
Financial Management – Financial goals - Profit vs. Wealth Maximization; Finance Functions –
Investment, Financing and Dividend Decisions – Cost of Capital – Significance of Cost of Capital –
Calculation of Cost of Debt – Cost of Preference Capital – Cost of Equity Capital (CAPM Model and
Gordon’s Model) and Cost of Retained Earnings – Combined Cost of Capital (weighted/Overall).

UNIT-II
Capital Budgeting – Nature of Investment Decisions – Investment Evaluation criteria – Net Present
Value (NPV), Internal Rate of Return (IRR), Profitability Index (PI), Payback Period, Accounting
Rate of Return (ARR) – NPV and IRR comparison.

UNIT-III
Operating and Financial Leverage – Measurement of Leverages – Effects of Operating and Financial
Leverage on Profit – Analyzing Alternate Financial Plans - Combined Financial and Operating
Leverage – Capital Structure Theories - Traditional approach - M.M. Hypotheses – without Taxes
and with Taxes – Net Income Approach (NI) – Net Operating Income Approach (NOI) - Determining
capital structure in practice.

UNIT- IV
Dividend Policies – Issues in Dividend Decisions – Relevance Theory – Walter's Model – Gordon's
Model – Irrelevance Theory – M-M hypothesis - Dividend Policy in Practice – Forms of Dividends –
Stability in Dividend Policy – Corporate Dividend Behaviour.

UNIT-V
Management of Working Capital – Significance and types of Working Capital – Calculating
Operating Cycle Period and Estimation of Working Capital Requirements – Financing of Working
Capital and norms of Bank Finance – Sources of Working capital – Factoring services– Various
committee reports on Bank Finance – Dimensions of Working Capital Management.

[Note: Distribution of Questions between Problems and Theory of this paper must be
40:60 i.e., Problem Questions: 40 % & Theory Questions: 60 %]

REFERENCES

Khan MY, Jain PK, BASIC FINANCIAL MANAGEMENT, Tata McGraw Hill, Delhi , 2005.
Chandra, Prasanna,. FINANCIAL MANAGEMENT, Tata McGraw Hill, Delhi.
Bhabatosh Banerjee, FUNDAMENTALS OF FINANCIAL MANAGEMENT, PHI, Delhi, 2010
Chandra Bose D, FUNDAMENTALS OF FINANCIAL MANAGEMENT, PHI, Delhi, 2010
Preeti Singh, FUNDAMENTALS OF FINANCIAL MANAGEMENT, Ane, 2011.
MBA- II Semester Paper Code: MBCP 2002

PAPER-IX
MARKETING MANAGEMENT

Objectives
➢ To familiarize with the basic concepts, and techniques of marketing management
➢ To understand the behaviour of consumers
➢ To create awareness of marketing mix elements, and
➢ To analyse and solve marketing problems in the complex and fast changing business
environment.

UNIT-I
Introduction to Marketing and Marketing Management, Marketing Concepts - Marketing
Process Marketing mix - Marketing environment. - Consumer Markets and buying behaviour
- Market segmentation and targeting and positioning.

UNIT-II
Product Decisions - concept of a Product - Product mix decisions - Brand Decision - New
Product Development – Sources of New Product idea - Steps in Product Development -
Product Life Cycle strategies- Stages in Product Life Cycle,

UNIT-III
Price Decisions - Pricing objectives - Pricing polices and constraints - Different pricing
method - New product pricing, Product Mix pricing strategies and Price adjustment strategy.

UNIT-IV
Channel Decision - Nature of Marketing Channels –. Types of Channel flows - Channel
functions - Functions of Distribution Channel – Structure and Design of Marketing Channels
-Channel co-operation, conflict and competition – Retailers and wholesalers.

UNIT - V
Promotion Decision - Promotion mix - Advertising Decision, Advertising objectives -
Advertising and Sales Promotion – Developing Advertising Programme – Role of Media in
Advertising - Advertisement effectiveness - - Sales force Decision.

REFERENCES
K.S. Chandrasekar, MARKETING MANAGEMENT TEXT AND CASES, Tata McGraw-Hill
Publication, New Delhi.2010
Govindarajan, MARKETING MANAGEMENT CONCEPTS, CASES, CHHALLENGES AND
TRENDS, Prentice Hall of India, New DelhI. 2009
Philip Kotler, MARKETING MANAGEMENT- ANALYSIS PLANNING AND CONTROL,
Prentice Hall of India, New Delhi,
Ramaswamy. V S & Namakumari. S, MARKETING MANAGEMENT-PLANNING
IMPLEMENTATION AND CONTROL, Macmillan Business Books, New Delihi, 2002,
MBA – II Semester Paper Code: MBCP 2003
PAPER – X
HUMAN RESOURCES MANAGEMENT
Objectives
➢ To understand and appreciate the importance of the human resources vis-a-vis other
resources of the organisation
➢ To familiarize the students with methods and techniques of HRM
➢ To equip them with the application of the HRM tools in real world business
situations.

UNIT-I
Human Resources Management - Context and Concept of People Management in a Systems
Perspective - Organisation and Functions of the HR and Personnel Department - HR
Structure and Strategy; Role of Government and Personnel Environment including MNCs.
UNIT – II
Recruitment and Selection - Human Resource Information System [HRIS] - Manpower
Planning - Selection – Induction & Orientation - Performance and Potential Appraisal -
Coaching and Mentoring - HRM issues and practices in the context of Outsourcing as a
strategy .
UNIT-III
Human Resources Development –Training and Development Methods - Design &
Evaluation of T&D Programmes - Career Development - Promotions and Transfers -
Personnel Empowerment including Delegation - Retirement and Other Separation Processes.
UNIT-IV
Financial Compensation- -Productivity and Morale - Principal Compensation Issues &
Management - Job Evaluation - Productivity, Employee Morale and Motivation - Stress
Management - Quality of Work Life.
UNIT – V
Building Relationships – Facilitating Legislative Framework - Trade Unions - Managing
Conflicts - Disciplinary Process - Collective Bargaining - Workers Participation in
Management - Concept, Mechanisms and Experiences.

REFERENCES
Venkata Ratnam C. S. & Srivatsava B. K.,PERSONNEL MANAGEMENT AND HUMAN
RESOURCES, Tata Mc-Graw Hill, NewDelhi,,
Aswathappa, HUMAN RESOURCE MANGEMENT, Tata McGraw Hill, NewDelhi, 2010
Garry Dessler &Varkkey, HUMAN RESOURCE MANAGEMENT, Pearson, New Delhi, 2009
Alan Price, HUMAN RESOURCE MANAGEMENT, Cengage Learning, NewDelhi, 2007
Pravin Durai, HUMAN RESOURCE MANGEMENT, Pearson, New Delhi,2010
Snell, Bohlander & Vohra, HUMAN RESOURCES MANAGEMENT, Cengage, NewDelhi, 2010
MBA – II Semester Paper Code: MBCP 2004
PAPER-XI
OPERATIONS RESEARCH

Objectives:
 To introduce various optimization techniques of operations research
 To facilitate the use of Quantitative Technique in various functional areas

UNIT-I
Stages of Development of Operations Research, Applications of Operations Research,
Limitations of Operations, Introduction to Linear Programming, Graphical Method,
Simplex Method, Duality.

UNIT-II
Transportation Problem, Assignment Problem, Inventory Control – Introduction to
Inventory Management, Basic Deterministic Models, Purchase Models, Manufacturing
Models without Shortages and with Shortages.

UNIT-III
Shortest Path Problem - Minimum Spanning Tree Problem - CPM/PERT, Crashing of a
Project Network.

UNIT-IV
Game Theory- Two Person Zero-sum Games -Graphical Solution of (2 x n) and (m x 2)
Games - LP Approach to Game Theory - Goal programming - Formulations.

UNIT-V
Introduction to Queuing Theory - Basic Waiting Line Models: (M/M/1 ):(GD/a/a),
(M/M/C):GD/a/a).

References

1. Panneerselvam, R, OPERATIONS RESEARCH, Prentice-Hall of India, New Delhi,

2006.
2. G.Srinivasan, OPERATIONS RESEARCH, PHI Learning, NewDelhi,2010
3. Tulsian & Pandey, QUANTITATIVE TECHNIQUES, Pearson, NewDelhi, 2002
4. Vohra, Quantative Techniques in Management, Tata McGrawHill, NewDelhi, 2010
MBA- II Semester Paper Code: MBCP 2005
PAPER-XII
STRATEGIC MANAGEMENT
Objectives

➢ Integrating the knowledge gained in functional areas of management

➢ helping the students to learn about the process of strategic management, and
➢ helping the students to learn about strategy formulation and implementation

UNIT-I
Concepts of Strategy - Levels at which strategy operates; Approaches to strategic decision
making; Mission and purpose, objectives and goals; Strategic business unit (SBD);
Functional level strategies

UNIT-II
Environmental Analysis and Diagnosis - Environment and its components; Environment
scanning and appraisal; Organizational appraisal; Strategic advantage analysis and diagnosis;
SWOT analysis

UNIT-III
Strategy Formulation and Choice - Modernization, Diversification Integration - Merger,
take-over and joint strategies - Turnaround, Divestment and Liquidation strategies -
Strategic choice - Industry, competitor and SWOT analysis - Factors affecting strategic
choice; Generic competitive strategies - Cost leadership, Differentiation, Focus, Value chain
analysis, Bench marking, Service blue printing

UNIT-IV
Functional Strategies: Marketing, production/operations and R&D plans and polices-
Personnel and financial plans and policies.

UNIT-V
Strategy Implementation - Inter - relationship between formulation and implementation -
Issues in strategy implementation - Resource allocation - Strategy and Structure - Structural
considerations - Organizational Design and change - Strategy Evaluation- Overview of
strategic evaluation; strategic control; Techniques of strategic evaluation and control.

REFERENCES
Azhar Kazmi, STRATEGIC MANAGEMENT & BUSINESS POLICY, Tata McGraw-Hill
Publishing Company Limited, New Delhi 2008.
Vipin Gupta, Kamala Gollakota & Srinivasan, BUSINESS POLICY & STRATEGIC
MANAGEMENT, Prentice Hall of India Private Limited, New Delhi,2008.
Amita Mittal, CASES IN STRATEGIC MANAGEMENT, Tata McGraw-Hill Publishing Company
Limited, New Delhi 2008.
Fred R. David, STRATEGIC MANAGEMENT CONCEPT AND CASES, PHI Learning
Private Limited, New Delhi, 2008.
MBA – II Semester Paper Code: MBCP 2006
PAPER-XIII
BUSINESS ETHICS

Objectives:
 To introduce the concept and importance of business ethics and corporate
governance
 To know the facets of ethics management
 To know the ethical values and Indian ethos in Management

UNIT-I: Introduction: Meaning – Definition –Scope – Ethical Values and Theories-

Myths –Ethics Vs Morality- Ethical Issues in the functional Areas of Business Management
– Cross-Country Perspectives on Business Ethics.

UNIT-II: ETHICS MANAGEMENT: Ethical Dilemma – Ethical Decision Making –

Ethical Reasoning – Ethical issues – Ethics Management Programmes – Benefits of
Managing Ethics in Work Place – Organisation Ethics Development System (OEDS) –
Code of ethics –Value based leadership.

UNIT-III: Ethical Values in Work Place: Characteristics- Types- Importance – Work

Ethics – Work Culture – Professional Ethics- Environmental Ethics – Challenges of Cyber
Age.

UNIT-IV: CORPORATE GOVERNANCE: Meaning –Mechanism- Principles – Code

of Corporate Governance – Audit Committee – Role of Independent Directors – Protection
of Stakeholders – Corporate Social Responsibility –Issues in Corporate Governance-
Emerging Trends.

UNIT-V: INDIAN ETHOS IN MANAGEMENT: Principles – Approaches – Role of Gita

– Karma Yoga – Wisdom Management- Gandhian Ethics- Spirituality- Humanism - Morals
Standards in Indian Ethics.

References:
1. Bhatia, S.K., Business Ethics and Corporate Governance, Deep & Deep Publication.
2. B.N Ghosh, Business Ethics and Corporate Governance, Mc Graw Hill.
3. Daniel Albuquerque, Business Ethics, Oxford Univ. Press
4. Laura P. Hartman, Perspectives in Business Ethics, Tata Mc Graw Hill.
5. Chakraborty, S.K., Management by Values, Oxford Univ. Press
MBA – II Semester Paper Code: MBCP 2007
PAPER-XIV
OPERATIONS MANAGEMENT

Objectives:
 To understand the concepts and techniques of Operations Management.
 To use the above for improving the Operational Productivity of Organizations.

UNIT-I

Introduction to Operations Management - Process Planning - Plant Location - Plant

Lay out - Introduction to Production Planning. Inventory Control: Review of Basic Models of
Inventory, P & Q system of Inventory

UNIT-II

Systems Concept of Production, Types of Production System, Productivity, Value Engineering,

Make orBuy Decision. Capacity Planning, Forecasting: Models of forecasting

UNIT-III

Nature of Aggregate Planning Decisions, Aggregate Planning Strategies, Aggregate Planning

Methods: Material Requirement Planning: Single Machine Scheduling:

UNIT-IV

Work Study: Method Study – Recording Techniques, Steps in Method Study, Principles of
Motion Economy, Time Study. Quality Control: Introduction, need for Controlling Quality,
Definition of a QualitySystem, Classification of Quality Control Techniques,

UNIT-V

Maintenance Planning and Control: Maintenance Objectives, Replacement, Group

Replacement Vs Individual Replacement – Trade-off. Reliability:

References

1. Panneerselvam. R; Production and Operations Management, 3rd Edition, PHI

Learning,
2. Delhi, 2013.
3. Joseph G. Monks: Operations Management - Theory and Problems, (McGraw
Hill).
4. Everett E. Adam & Ronald J. Ebert: Production and Operations Management,
5. (Prentice Hall, 1994).
6. William J. Stevenson: Production/Operations Management, RichardIrwin.
7. Norman Gaither: Production and Operations Management, (The Dryden Press).
8. Jack R. Meredith- The Management Of Operation, (John Wiley & Sons).
9. S.N. Chary, Production and Operations Management, (Tata McGrawHill).
10. Jay Heizer & Barry Render: Operations Management, Prentice HallInternational,
Inc. 2001, International Edition.
MBA (Finance) – III Semester
PAPER -XV
STRATEGIC FINANCIAL MANAGEMENT
Course Code: 37 Paper code: MBFM 3001
Objectives
➢ To acquaint the students with concepts of Financial management from strategic
perspective and
➢ To familiarize various Techniques and Models of Strategic Financial Management.
UNIT – I

Financial Policy and Strategic Planning –Strategic Planning Process – Objectives and Goals – Major
Kinds of Strategies and Policies – Corporate Planning – Process of Financial Planning – Types of
Financial Plan – Financial Models – Tools or Techniques of Financial Modeling – Uses and
Limitations of Financial Modeling – Applications of Financial Models – Types of Financial Models
- Process of Financial Model Development.

UNIT – II

Investments Decisions under Risk and Uncertainty – Techniques of Investment Decision – Risk
Adjusted Discount Rate, Certainty Equivalent Factor, Statistical Method, Sensitivity Analysis and
Simulation Method – Corporate Strategy and High Technology Investments.

UNIT – III

Expansion and Financial Restructuring – Corporate Restructuring - Mergers and Amalgamations –

reasons for Merger, Benefits and Cost of Merger – Takeovers – Business Alliances – Managing an
Acquisition – Divestitures – Ownership Restructuring – Privatisation – Dynamics of Restructuring –
Buy Back of Shares – Leveraged Buy-outs (LBOs) – Divestiture – Demergers.

UNIT – IV

Leasing – Importance, Types, Tax Considerations, and Accounting Considerations – Evaluation of

Lease from the point of view of Lessor and Lessee – Lease versus Buy Decision – Venture Capital –
Concept and Developments in India – Process and Methods of Financing – Fiscal Incentives.

UNIT – V

Financing Strategy - Innovative Sources of Finance – Asset Backed Securities - Hybrid Securities
namely Convertible and Non-Convertible Debentures, Deep Discount Bonds, Secured Premium
Notes, Convertible Preference Shares – Option Financing, Warrants, Convertibles and Exchangeable
Commercial Paper.

REFERENCES
Rajni Sofat & Preeti Hiro, STRATEGIC FINANCIAL MANAGEMENT, PHI, Delhi, 2011
Weaver & Weston, STRATEGIC CORPORATE FINANCE, Cengage Learning, Delhi, 2001
Chandra, Prasanna, FINANCIAL MANAGEMENT, Tata McGraw Hill, Delhi. 2007
MBA (Finance) – III Semester
PAPER -XVI
BANKING AND INDIAN FINANCIAL SYSTEM
Course Code: 37 Paper code: MBFM
3002
Objectives
➢ To get an insight into the constitutions, structure, objectives and working of the
Banking Institutions in India
➢ To evaluate the performance of Banking Institutions and their contribution to the
growth of Indian Corporate Sector and
➢ To have a Bird’s view of the Indian Financial System and in the context of Global
Indian Banking System.
UNIT- I

Banking Systems – Definitions – Functions – Types – Central Banking – Structure of Banking

System- Rural Financing – Banker and Customer Relationship – Deposit Mobilization – Loans and
Advances – Assets and Liabilities Management – Secured Advances – Endorsement and Crossing of
Cheques – Payment of Cheques – Collection of Cheques.

UNIT-II

Central Banking System – Nature- Organization and Management- Functions – Methods of Credit
Controls – Objects of Monetary Policy – Autonomy of Central Bank Systems – Indian Money Market
– Indian Capital Market – New Issue Market- Banking Legislations in India.

UNIT-III

Industrial and Agricultural Banking System – All Indian Development Banks – Investment
Institutions- State Level Institutions – Specialized Financial Institutions – International Finance
Institutions – IBRD – IFC – IDA – NABARD – NHB – Micro Financing Institutions.

UNIT-IV

Financial systems - Overview of Indian Financial System – savings and Financial Intermediation –
Financial Markets – Listing Regulations – Primary Markets – Secondary Markets – Mutual Funds –
Indian Fiscal Systems.

UNIT-V

Foreign Investments – Foreign Capital – Foreign Collaboration – Foreign Direct Investment – foreign
Institutional Investors – Offshore Country Funds – Overseas Venture Capital Investments –
International Capital Market.

REFERENCES
M.Y. Khan, INDIAN FINANCIAL SYSTEM, Tata Mc Graw Hill, Delhi,2008
Jeff Madura, FINANCIAL MARKETS AND INSTITUTIONS, CenGage Learning, Delhi, 2008
H.R. Machiraju, INDIAN FINANCIAL SYSTEM, Vikas Publishing House, Delhi, 2009
Pathak, THE INDIAN FINANCIAL SYSTEM, Pearson Education India, 2007
MBA (Finance) – III Semester
PAPER -XVII
MERCHANT BANKING AND FINANCIAL SERVICES
Course Code: 37 Paper code:
MBFM3003
Objectives
➢ To examine Financial Services management as an important and contemporary area
of financial management
➢ To understand the various financial services and their future and
➢ To determine the most suitable financial service, given the situations and
contingencies
UNIT-I
Financial Services Industry – Emergence – Developments – Fund Based and Non-fund based
activities – modern activities – New Financial Products and Services, Innovative Financial
Instruments – Challenges Ahead.

UNIT-II
Merchant Banking – Issues Management Intermediaries – Merchant Bankers/Lead Managers –
Underwriters – Bankers, Brokers and Registrars to an Issue and Share Transfer Agents– Debenture
/Trustees – Portfolio Managers – Issue Management Activities/Procedures – Eligibility norms –
Pricing or Issues – Promoters’ contribution – Issue of Indian Depository Receipts (IDR) – Issue
Advertisement – Issue of Debt Instruments – Book building – Green shoe Option – Initial Public
Offer through Stock Exchange Online System – Preferential Issues – Qualified Institutional
Placement.

UNIT-III
Factoring and Forfeiting - Modus Operandi, types, functions – Factoring in India - Bills Discounting –
Real estate Industry – Housing Finance – Housing Finance system – National Housing Bank –
Refinance scheme for HFCs – Asset Liability Management – Securitisation – Mortgage-Based
Securitisation – Reverse Mortgage Loan (RML) Securitisation of Standard Assets.

UNIT-IV
Mutual Funds - Origin, Types of Mutual Funds, Importance, Mutual Funds Industry in India – SEBI’s
directives for Mutual Funds, Private Mutual Funds, Asst Management company – Unit Trust of India
– Evaluation of Performance of Mutual Funds – Money Market Mutual Funds – RBI Guidelines –
Venture Capital: Meaning, Origin, Importance, Methods, India Scenario.

UNIT-V
Insurance – Meaning, Types, Insurance Industry in India and related reforms – Other Financial
Services – Credit Cards – Credit Rating: Regulatory framework – Credit Rating Agencies – Rating
Process and Methodology – Rating symbols/Grades – Pension Plan.

REFERENCES
Khan, M.Y., FINANCIAL SERVICES, Tata McGraw Hill, New Delhi, 2001.
Gurusamy, MERCHANT BANKING AND FINANCIAL SERVIES, Tata McGraw Hill, Delhi,
2009.
MBA (Finance) – III Semester
PAPER –XVIII
PROJECT MANAGEMENT
Course Code: 37 Paper code:
MBFM3004
Objectives
➢ To understand the concept of project and steps in project management
➢ To enable the students to prepare business proposals and
➢ To enable the students to evaluate the Project feasibility
UNIT-I
Project – Classification – Importance of Project Management – An Integrated Approach – Project
Portfolio Management System – The Need – Choosing the appropriate Project Management Structure:
Organizational considerations and project considerations – steps in defining the project – project
Rollup – Process breakdown structure – Responsibility Matrices – External causes of delay and
internal constraints.
UNIT-II
Project feasibility studies - Opportunity studies, General opportunity studies, specific opportunity
studies, pre-feasibility studies, functional studies or support studies, feasibility study – components of
project feasibility studies – Managing Project resources flow – project planning to project completion:
Pre-investment phase, Investment Phase and operational phase – Project Life Cycle – Project
constraints.
UNIT-III
Project Evaluation under certainty - Net Present Value (Problems - Case Study), Benefit Cost Ratio,
Internal Rate of Return, Urgency, Payback Period, ARR – Project Evaluation under uncertainty –
Methodology for project evaluation – Commercial vs. National Profitability – Social Cost Benefit
Analysis, Commercial or National Profitability, social or national profitability.
UNIT-IV
Developing a Project Plan - Developing the Project Network – Constructing a Project Network
(Problems) – PERT – CPM – Crashing of Project Network (Problems - Case Study) – Resource
Leveling and Resource Allocation – how to avoid cost and time overruns – Steps in Project Appraisal
Process – Project Control Process – Control Issues – Project Audits – the Project Audit Process –
project closure – team, team member and project manager evaluations.
UNIT-V
Managing versus leading a project - managing project stakeholders – social network building
(Including management by wandering around) – qualities of an effective project manager – managing
project teams – Five Stage Team Development Model – Situational factors affecting team
development – project team pitfalls.
[Note: Distribution of Questions between Problems and Theory of this paper must be 20:80 i.e.,
Problem Questions: 20 % & Theory Questions: 80 %]

REFERENCES
Panneerselvam & senthilkumar, PROJECT MANAGEMENT, PHI, Delhi, 2009
Kamaraju Ramakrishna, ESSENTIALS OF PROJECT MANAGEMENT, PHI, Delhi, 2010
Arun Kanda , PROJECT MANAGEMENT, PHI, Delhi, 2011
MBA (Finance) – III Semester
PAPER -XIX
MANAGEMENT ACCOUNTING
Course Code: 37 Paper code:
MBFM3005
Objectives
➢ To apply various management accounting techniques to all types of organizations for
planning, decision making and control purposes in practical situations and
➢ To familiarize Contemporary Issues in Management Accounting.

UNIT - I
Management accounting – Objectives, nature, and scope of Financial Accounting, Cost
Accounting, and Management Accounting – Managerial Decisions – Accounting Plan and
Responsibility Centers – Significance of Responsibility Accounting – Responsibility Centers
– Cost Centre, Profit Centre and Investment Centre – Determinants of Responsibility Centers
– Transfer Pricing – Objectives of transfer pricing – Methods of transfer pricing (simple
problems) – Conflict between a division and a company - Multi-National Transfer pricing.

UNIT – II
Budgeting and Budgetary control – Fixed and flexible budget – Preparation of functional
budget for operating and non-operating functions, Cash budgets, Capital expenditure budget,
Master budget, Principal budget factors – Zero-base budgeting – Performance budgeting –
Standard Costing and Variance Analysis – Material Variances – labour Variances, Overhead
(Fixed and Variable) Variances – Sales Variances.

UNIT – III
Marginal Costing and Break-even Analysis – Cost-Volume-Profit (CVP) Analysis – Break-
Even Analysis – Assumptions and practical applications of Breakeven-Analysis – Decisions
regarding Sales-mix – Make or Buy Decisions – Limiting Factor Decision – Export Decision
– Plant Merger – Decision of Shutdown or Continuation of a product line.

UNIT - IV
DuPont Analysis – Fund Flow Analysis – Cash flow analysis – Contemporary Issues in
Management Accounting – Value chain analysis – Activity-Based Costing (ABC) – Quality
Costing – Target and Life Cycle Costing – Theory of Constraints accounting (TOC).

UNIT – V
Social Cost Benefit Analysis – Decision Tree in Management – Reporting to Management –
Objectives of Reporting – Reporting needs at different managerial levels – Types of reports –
Modes of Reporting, Reporting at different levels of Management.
[Note: Distribution of Questions between Problems and Theory of this paper must be
60:40 i.e., Problem Questions: 60 % & Theory Questions: 40%]

REFERENCES
Khan. MY, Jain P., MANAGEMENT ACCOUNTING, McGraw Hill, Delhi, 2009
Singhvi. NM, MANAGEMENT ACCOUNTING, PHI, Delhi, 2010
Dr Murthy, S Gurusamy, MANAGEMENT ACCOUNTING, McGraw Hill, Delhi, 2009
MBA (Finance) – IV Semester
PAPER -XX
INVESTMENT AND PORTFILIO MANAGEMENT
Course Code: 37 Paper code:
MBFM4001

Objectives

➢ To have understanding on investment and avenues of investment

➢ To have exposure on analysis techniques of capital market and
➢ To understand various theories of portfolio management
UNIT -I
Investment – Basics of Investment – Investment, Speculation and Gambling – Investment Categories
– Investment avenues – Non marketable Financial Assets – Money Market Instruments –
Bond/Debentures – Equity Shares – Schemes of LIC – Mutual Funds – Financial Derivatives – Real
Assets – Real Estate – Art – antiques and others.
UNIT- II
Fundamental Security Analysis – Economic Analysis – significance and Interpretation of the
Economic Indicators – Industry Analysis – Industry Growth Cycle - Company analysis – Marketing –
Accounting policies – Profitability – Dividend Policy – Capital Structure – Financial Analysis –
Operating Efficiency – Management – Fundamental Security Analysis – Changes in the Financing
Patterns of Indian Companies – Debt-Equity Ratio for India Companies.
UNIT-III
Technical Analysis – Technical Tools - The Dow Theory – Primary Trend – The secondary Trend –
Minor Trends – Support and Resistance Level – Indicators – Odd Lot Trading – Moving Average –
Rate of Change – Charts – Technical indicators – Charting Techniques – Indicators of the Witchcraft
Variety – Efficient Market Theory – Basic Concepts – Random-Walk Theory – Weak Form of EMH
– Semi-strong Form – Strong Form – The Essence of the Theory – Market Inefficiencies.
UNIT-IV
Portfolio Analysis – Portfolio and Single asset Returns and Risk – Mean Variance Criterion –
covariance – Beta (simple problems) – Portfolio Markowitz Model – simple Diversification – Risk
and Return with Different correlation – Sharpe’s Single Index Model – Sharpe’s Optimal Portfolio –
Construction of the Optimal Portfolio – Optimum Portfolio with short sales.
UNIT-V
Asset Pricing Model Portfolio Evaluation – Capital Asset Pricing Model (CAPM) – Security Market
Line – Assumptions – Arbitrage Pricing Model (APT) – Portfolio Performance Models – Sharpe’s
Performance Index – Treynor’s Performance Index – Jensen’s Performance Index.

REFERENCES
Punithavathy Pandian, SECURITY ANALYSIS AND PORTFOLIO MANAGEMENT, Vikas
Publications Pvt. Ltd, New Delhi. 2001.
Kevin .S, SECURITY ANALYSIS AND PORTFOLIO MANAGEMENT, PHI, Delhi, 2011
Yogesh Maheswari, INVESTMENT MANAGEMENT, PHI, Delhi, 2011
Bhalla V K, INVESTMENT MANAGEMENT: SECURITY ANALYSIS AND PORTFOLIO
MANAGEMENT, S Chand, New Delhi, 2009
Prasanna Chandra, PORTFOLIO MANAGEMET, Tata McGraw Hill, New Delhi, 2008.
MBA (Finance) – IV Semester

PAPER -XXI
GLOBAL FINANCIAL MANAGEMENT
Course Code: 37 Paper code:
MBFM4002
Objectives
➢ To have exposure on International Monetary System
➢ To understand about Balance of Payments and currency Exposure and
➢ To introduce and familiarize the International Financial Markets and Instruments.
UNIT-I

Globalisation - Implications of Globalisation – Goals of International Financial Management - scope

of International Finance – International Monetary System – Bimetallism – Gold Standard – Bretton
Woods System – Floating Exchange Rate Regime – European Monetary System – IMF – WTO –
GATT .

UNIT-II

Balance of Payments – The Current Account – The Capital Account – significance - Balance of
Payments in the World – Balance of Payments Account of India

UNIT-III

International Financial Markets – Sources of International Funds – Multilateral Development Banks –

Governments/ Governmental Agencies – International Banks – Security Markets Instruments of
International Financial Markets– International Equities – GDRs – ADRs - International Money
Market and Bond Market Instruments – Euro Bonds – Repos – Euro Commercial Paper – Medium
Term Notes – Floating Rate Notes – Loan Syndicates – Euro Deposits – Euro Issues in India.

UNIT-IV

Currency Risk and Exposure – Types of Currency Risk – Management of Currency Risk – Concept
and Measurement of Transaction Exposure - Techniques of Transaction Exposure Management –
Translation Exposure – methods – Transaction Exposure Vs. Translation Exposure – Exchange Risk
Management –Operating Exposure – measuring and managing Operating Exposure.

UNIT-V

Foreign Direct Investment (FDI) – Forms of FDIs – FDI in World – purpose of overseas investment –
Benefits to the Host Countries – Effects of FDI – Political Risk.

REFERENCES

Joseph Anbarasu, GLOBAL FINANCIAL MANAGEMENT, Ane, Delhi, 2010

Kevin S, FUNDAMENTALS OF INTERNATIONAL FINANCIAL MANAGEMENT, PHI, Delhi,
2010
Jeff Madura, INTERNATIONAL FINANCIAL MANAGEMENT, Cengage learning, Delhi, 2008
MBA (Finance) – IV Semester
PAPER -XXII
INTERNATIONAL TRADE AND FINANCE
Course Code: 37 Paper code: MBFM
4003
Objectives
➢ To make the students well aware about the formalities associated with International
trade
➢ To make the students aware of the documentation of International Trade and
➢ To make the students aware of the FOREX Management and Export Promotion
Schemes.
UNIT-I
International Trade –Benefits – Basis of International Trade – Foreign Trade and Economic Growth –
Balance of Trade – Balance of Payment – Current Trends in India – Barriers to International Trade –
Indian EXIM Policy.

UNIT-II
Export and Import Finance: Special need for Finance in International Trade – INCO Terms (FOB,
CIF, etc.,) – Payment Terms – Letters of Credit – Pre Shipment and Post Shipment Finance –
Fortfaiting – Deferred Payment Terms – EXIM Bank – ECGC and its schemes – Import Licensing –
Financing methods for import of Capital goods.

UNIT-III
Foreign Exchange Markets – Spot Prices and Forward Prices – Factors influencing Exchange rates –
The effects of Exchange rates in Foreign Trade – Tools for hedging against Exchange rate variations –
Forward, Futures and Currency options – FEMA – Determination of Foreign Exchange rate and
Forecasting – Law of one price – PPP theory – Interest Rate Parity – Exchange rate Forecasting.

UNIT-IV
Export Trade Documents: Financial Documents – Bill of Exchange – Type – Commercial Documents
– Proforma, Commercial, Consular, Customs, Legalized Invoice, Certificate of Origin Certificate
Value, Packing List, Weight Certificate, Certificate of Analysis and Quality, Certificate of Inspection,
Health certificate. Transport Documents - Bill of Lading, Airway Bill, Postal Receipt, Multimodal
Transport Document. Risk Covering Document: Insurance Policy, Insurance Cover Note. Official
Document: Export Declaration Forms, GR Form, PP From, COD Form, Softer Forms, Export
Certification, GSPS – UPCDC Norms.

UNIT-V
Export Promotion Schemes – Government Organizations Promoting Exports – Export Incentives:
Duty Exemption – IT Concession – Marketing Assistance – EPCG, DEPB – Advance License – Other
efforts I Export Promotion – EPZ – EQU – SEZ and Export House.

REFERENCES
Jeevanandam .C, INTERNATIONAL BUSINESS, M/s Sultan & Chand, Delhi, 2008
Sumathi Varma, INTERNATIONAL BUSINESS, Ane, Delhi, 2010
MBA (Finance) – IV Semester
PAPER -XXIII
SECURITY MARKET OPERATIONS
Course Code: 37 Paper code:
MBFM4004
Objectives
➢ To Familiarize the students about SEBI and its Rules
➢ To Understand the activities and procedures of Security Market and its mechanism
and
➢ To acquaint the knowledge about funds mobilized through various sources and
instruments of Financial Market.
UNIT – I
Security Markets - Legal Environment: SEBI Act, 1992, Securities Contract Regulation Act 1956,
Companies Act 1956 (various provisions relating to securities), RBI rules and guidelines for Fll's.
UNIT – II
Security Markets - Primary market - its role and functions - Methods of selling securities in primary
market – New financial instruments – New Issues – SEBI guidelines for public issues – pricing of
issue, promoters' contribution – appointment and role of merchant bankers, underwriters, brokers,
registrars and managers, bankers etc - Underwriting of issues – Allotment of shares – Procedures for
new issues – e-trading.
UNIT – III
Secondary Market – Role, importance, organization of stock exchanges – Listing of securities in stock
exchanges – Trading mechanism – screen based system – Insider trading; Take-over’s – Internet
based trading.
UNIT – IV
Depository – Role and need – The Depositories Act, 1996, SEBI (Depositories and Participants
Regulation) 1996 – SEBI (Custodian of Securities) Regulation 1996 – National Securities Depository
Ltd. (NSDL) – Depository participant.

UNIT – V
Capital Market Instruments – Equity, Secured Premium Notes, Equity Shares with detachable
warrants, Sweat Equity, Non-Voting Shares, Tracking stocks, Preference Shares, Debentures,
Disaster Bonds, Option Bonds, Easy Exit Bonds, Split Coupon Debentures, Floating Rate Bonds and
Notes, Clip and Strip Bonds, Dual Convertible Bonds, Debt Instruments with Debt warrants, Indexed
Rate Notes, Stepped Coupon Bonds, Dual Option Warrants, Extendable Notes, Commodity Bonds ,
Mortgage Backed Securities, Carrot and Stick Bond, Capital Indexed Bonds, Debt for Equity Swap,
Zero Coupon Convertible Notes, Global Depository Receipts, Foreign Currency Convertible Bonds –
New instruments of Capital Market – Pure, Hybrid and Derivatives; Money Market Instruments –
Treasury bills, Commercial Bills, Commercial Paper, Participatory Notes.

REFERENCES
Dalton, John M, HOW THE STOCK MARKET WORKS, Prentice Hall, New Delhi.
Machi Raju, H.R, MERCHANT BANKING; Wiley Eastern Ltd.; New Delhi.
Chanratre, KR, CAPITAL ISSUE, SEBI & LISTING; Bharat Publishing House, NewDelhi.
MBA Finance) – IV Semester
PAPER –XXIV
FINANCIAL DERIVATIVES
Course Code: 37 Paper code:
MBFM4005
Objectives
➢ To Understand the students about the concept of Derivatives and its types
➢ To acquaint the knowledge of Options and Futures and
➢ To know about Hedging and the development position of Derivatives in India.
UNIT – I
Derivatives – Features of a Financial Derivative – Types of Financial Derivatives - Basic
Financial derivatives – History of Derivatives Markets – Uses of Derivatives – Critiques of
Derivatives – Forward Market: Pricing and Trading Mechanism – Forward Contract concept
– Features of Forward Contract – Classification of Forward Contracts – Forward Trading
Mechanism – Forward Prices Vs Future Prices.
UNIT – II
Options and Swaps – Concept of Options – Types of options – Option Valuation – Option
Positions Naked and Covered Option – Underlying Assets in Exchange-traded Options –
Determinants of Option Prices – Binomial Option Pricing Model – Black-Scholes Option
Pricing – Basic Principles of Option Trading – SWAP: Concept, Evaluation and Features of
Swap – Types of Financial Swaps – Interest Rate Swaps – Currency Swap – Debt-Equity
Swap.
UNIT – III
Futures – Financial Futures Contracts – Types of Financial Futures Contract – Evolution of
Futures Market in India – Traders in Futures Market in India – Functions and Growth of
Futures Markets – Futures Market Trading Mechanism - Specification of the Future Contract
– Clearing House – Operation of Margins – Settlement – Theories of Future prices – Future
prices and Risk Aversion – Forward Contract Vs. Futures Contracts.
UNIT – IV
Hedging and Stock Index Futures – Concepts – Perfect Hedging Model – Basic Long and
Short Hedges – Cross Hedging – Basis Risk and Hedging – Basis Risk Vs Price Risk –
Hedging Effectiveness – Devising a Hedging Strategy – Hedging Objectives – Management
of Hedge – Concept of Stock Index – Stock Index Futures – Stock Index Futures as a
Portfolio management Tool – Speculation and Stock Index Futures – Stock Index Futures
Trading in Indian Stock Market.
UNIT – V
Financial Derivatives Market in India – Need for Derivatives – Evolution of Derivatives in
India – Major Recommendations of Dr. L.C. Gupta Committee – Equity Derivatives –
Strengthening of Cash Market – Benefits of Derivatives in India – Categories of Derivatives
Traded in India – Derivatives Trading at NSE/BSE – Eligibility of Stocks – Emerging
Structure of Derivatives Markets in India -Regulation of Financial Derivatives in India –
Structure of the Market –Trading systems – Badla system in Indian Stock Market –
Regulatory Instruments.
REFERENCES
Gupta . S.L., FINANCIAL DERIVATIVES THEORY, CONCEPTS AND PROBLEMS
PHI, New Delhi, 2005
Kumar S.S.S. FINANCIAL DERIVATIVES, PHI, New Delhi, 2007
Chance, Don M: DERIVATIVES and Risk Management Basics, Cengage Learning, New
Delhi.
Stulz M. Rene, RISK MANAGEMENT & DERIVATIVES, Cengage Learning, New Delhi.