christ (deemed to be university) pune lavasa campus … · 2020-04-20 · unit 9: applications of...

CHRIST (Deemed to be University)Pune Lavasa Campus

www.lavasa.christuniversity.in

P a g e | 2

PROGRAMEE STRUCTURE

I SEMESTER

Course

Code Course Title

Core/Elective/

Project

Number

of

Credits

MFIN131 Excel for Finance Core 2

MFIN132 Statistics and Mathematics for Finance Core 4

MFIN133 Financial System and Services Core 4

MFIN134 Financial Management Core 4

MFIN135 Accounting for Finance Core 4

MFIN136 Contemporary Business Management Core 4

MFIN137 Financial Regulations and Corporate Governance Core 4

HOL111 Holistic Education SEC

Total Credits 26

II SEMESTER

Course

Code Course Title

Core/Elective/

Project

Number

of

Credits

MFIN 231 Wealth Management Core 4

MFIN 232 Financial Market & Asset Classes Core 4

MFIN 233 Investment and Portfolio Management Core 4

MFIN234 Trading Financial Markets – Practical Technical analysis Core 4

MFIN235 Applied Equity Research Core 4

MFIN236 Fixed Income Securities Core 4

MFIN237 Advanced Financial Modelling using Excel/VBA

Core 2

HOL211 Holistic Education SEC

Total Credits 26

P a g e | 3

III SEMESTER

Course Code Course Title Core/Elective/

Project

Number

of

Credits

MFIN331 Credit Analysis and Research Core 4

MFIN332 Derivatives, Markets and Products Core 4

MFIN333 Advanced Valuation Core 4

MFIN334 Financial Econometrics Core 4

MFIN335 International Financial Management Core 4

MFIN321 Applied Business Intelligence AECC 2

MFIN322 Algorithmic Trading and Strategies AECC 2

MFIN306 Internship Project Project 2

Holistic Education AEC

Total Credits 26

IV SEMESTER

Course Code Course Title Core/Elective/

Project

Number

of

Credits

MFIN431 Treasury and Risk Management Core 4

MFIN432 M & A, Private Equity and Venture Capital Core 4

MFIN433 Financial Engineering Core 4

MFIN444 Financial Analytics Core 4

MFIN445 Behavioural Finance Core 4

MFIN446 Strategic Financial Management Core 4

MFIN421 R for Financial Analytics AECC 2

Holistic Education AEC

Total Credits 26

P a g e | 4

FIRST SEMESTER

MFIN131 - Excel for Finance

Total Teaching Hours for Semester: 30

Max Marks: 50 Credit: 2

COURSE DESCRIPTION: Excel for Finance is specially designed to impart practical skills in the area

of Finance that are in line with industry best practices. The course enables a student to apply advanced

Excel skills such as Lookups, Data Validation, Sensitivity and Scenario Analysis to financial datasets. This

course also focuses on aggregation and analysis of data using statistical functions, mathematical functions,

tables, logical functions, conditional formatting and effectively presenting the data in the form of

dashboards using charting and graphing techniques. Student pursuing this course will be able to handle

large datasets and effectively analyze and present them in an elegant manner by the end of this course.

UNIT 1: BASICS OF EXCEL 2 Hrs.

Introduction to Rows, Columns and Cells, Insertion and deletion of rows and columns, Create, Edit, Copy,

Move and Link worksheets, Absolute and Relative cell references, Data validation, Sorting & Filtering

UNIT 2: FORMATTING SHEETS 2 Hrs.

Formatting of data, Formatting (Text, Number, Cell styles – Alignment), Borders and fill patterns,

Adjusting column width and row height, Copying format (Paste & Paste special), Conditional Formatting

(Highlight cells, Top/Bottom)

UNIT 3: WORKING WITH CHARTS 2 Hrs.

Creating and formatting charts, Primary & Secondary data points, Building picture charts, Understanding

various types of charts

UNIT 4: INTRODUCTION TO FUNCTIONS 4 Hrs.

Commands and Functions with reference to data manipulation, Logical functions – IF (), SUMIF (),

COUNTIF (), AVERAGEIF (), Mathematical functions – SUM(), SUMPRODUCT(), COUNT(), SQRT(),

POWER(), AVERAGE(), MAX(), MIN(), MEDIAN(), MODE(), STDEV()

Financial functions – PV (), FV (), PMT (), NPV (), IRR ()

UNIT 5: USING LOOKUP & REFERENCE FUNCTIONS, DATA ANALYSIS 2 Hrs.

CHOOSE(), LOOKUP(),VLOOKUP(), HLOOKUP(), MATCH(), Nested Ifs, What-if analysis-Goal Seek

UNIT 6: WORKING WITH REPORTS 2 Hrs.

Creating pivottables, formatting and customizing pivot tables, swapping rows and columns, grouping

fields, Drill down, Calculations & Reporting, pivot charts.

P a g e | 5

UNIT 7: ADVANCED EXCEL FUNCTIONS ON FINANCIAL 4 Hrs.

Data cleaning – Financial Time series - Good financial modeling practices, organizing the historical –

(financial statements), building financial ratios for trend analysis & forecasting, Forecasting the P& L,

Balance sheet forecasting and validating, Forecasting cash flow statement, Sales projections & merging of

graphs - Conditional Sum products and dashboarding - Useful functions - string / statistical / date-time

/ financial - Error Handling Functions - Formula Auditing

UNIT 8: USING EXCEL FOR ADVANCED FUNCTIONALITIES IN FINANCE 4 Hrs.

Solver & Optimization Techniques - Scenario Analysis - Sensitivity Analysis - Goal Seek Examples from

various finance and banking domains on applications of above principles

UNIT 9: DATA VALIDATION TECHNIQUES 4 Hrs.

Using data validation rules to create financial models - Using multi level data validation and linkages in a

financial model - How to effectively use data validation techniques

UNIT 10: IMPORTANT EXCEL TO-KNOWS FOR FINANCIAL MODELING 4 Hrs.

Conditional Formatting - Charting & Graphing Techniques - In-cell charting - Sparklines, Inline Charts,

etc - Security Features - Other Advanced Excel Functionalities

P a g e | 6

MFIN132 - Statistics and Mathematics for Finance


Max Marks:100 Credit: 4

COURSE DESCRIPTION: This is a core course for 4 credits. It will discuss from both conceptual and

application perspective, statistical and mathematical methods widely used in business applications. The

course enables to conceptualize business and financial problems in statistical and mathematical terms and

enhances understanding and application of fact and evidence based decision making process.

UNIT 1: PROBABILITY & DISTRIBUTIONS 8 Hrs.

Probability - Event algebra*. Conditions of statistical dependence and independence, Types of probability,

probabilities under conditions of statistical independence, conditional probability under statistical

dependence, Bayes’ theorem and its applications. Meaning of Probability Distribution, Random variables,

Discrete and continuous random variables. Expected value, Use of expected value in decision making,

Variance of a random variable. Binomial, Poisson, Uniform, Normal and Exponential distributions and

their properties and applications.

UNIT 2: SAMPLING METHODS AND ESTIMATION 4 Hrs.

Sampling - Need, benefits and limitations. Probability and Non-probability sampling methods. Sampling

distributions, Central Limit Theorem

Estimation: Point and Interval estimators of mean and proportion - Determining sample size using

confidence interval approach.

UNIT 3: STATISTICAL HYPOTHESIS TESTING & TOOLS 8 Hrs.

Concepts basic to hypothesis, null and alternative hypothesis, testing procedure, level of significance,

Types of errors. Measuring power of a hypothesis test. Testing of means and proportions for small and

large samples, testing of difference between means and proportions for small and large samples.

Chi-Square test of goodness of fit and test of independence. ANOVA, Multiple comparison procedures.

Inference about population variance. Overview of Analysis of CRD, RBD, LSD, and factorial designs.

t-Tests, Chi-square test for Goodness of Fit and independence of attributes, ANOVA using MS Excel.

UNIT 4: CORRELATION AND REGRESSION 4 Hrs.

Concept of Correlation - Measure of Correlation & Interpretation. Simple Linear Regression - Form,

fitting, prediction, hypothesis testing in linear regression. Residual analysis for validation of assumptions*

- normality, homoscedasticity, outliers and influential observations.

Correlation and Regression using MS Excel /SPSS/Minitab.

UNIT 5: INTRODUCTION TO OPERATIONS RESEARCH AND LPP 6 Hrs.

Introduction: Evolution - importance - scope and impact on business - Models - by function; by structure;

by environment - limitations of OR techniques

P a g e | 7

Introduction to LPP- formulation, Graphical method, Sensitivity analysis and Duality theory.

OVERVIEW OF SIMPLEX METHOD: Formulating and developing a spreadsheet model for LPP and

use of Excel solver. Solution and Sensitivity Analysis using Excel.

UNIT 6: TRANSPORTATION & ASSIGNMENT PROBLEMS 8 Hrs.

Nature and scope - Optimal solution - North West Corner rule - Matrix minima method - VOGEL’s

Approximation Method (VAM) - Test for optimality - Modified Distribution Method (MODI) -

Unbalanced transportation problems

Spreadsheet models for Transportation problems.

Hungarian method - Unbalanced assignment - Maximization in assignment - Travelling salesman problem

– Transhipment problem. Flight assignment problems. Spreadsheet models for Assignment problems.

UNIT 7: GAME THEORY 4 Hrs.

Introduction to Game theory- Definition - Payoff - Types of games - 2-person zero sum game –

maximin/minimax principle. Applications of Saddle point theorem.

UNIT 8: SEQUENCING AND SIMULATION 4 Hrs.

Sequencing: Processing n jobs through 2 and 3 machines.

Simulation: Introduction - random number generation - Monte Carlo Technique - application.

UNIT 9: APPLICATIONS OF MARKOV CHAINS 4 Hrs.

Applications of Transitions Matrices of Markov Chains - Brand Switching Analysis, Attrition Analysis,

Spreadsheet models.

UNIT 10: QUEUING THEORY 3 Hrs.

Queuing Theory: Features of the Waiting Line system - Kendall’s Notation - Queuing models - Single

Channel/Infinite capacity.

UNIT 11: FINANCIAL CALCULUS 7 Hrs.

Taylor series; Ordinary differential equations; Similarity solutions; Brownian Motion; Stochastic

Differential equations; Itô’s lemma; Continuous-time stochastic differential equations as discrete-time

processes; Correlated Random Walks; Using Itô’s lemma to manipulate stochastic differential equations.

P a g e | 8

MFIN133 - Financial System and Services


Max Marks:100 Credits: 4

COURSE DESCRIPTION: This course familiarizes the students about the Indian financial System and

its constituents namely, the markets, institutions, instruments, services and intermediaries. It also gives an

overview of the role played by the regulators in the smooth functioning of the markets. It provides a broad

insight in to the types of risk prevalent in the financial system and explains different ways to manage those

risks.

UNIT 1: OVERVIEW OF INDIAN FINANCIAL SYSTEM AND SERVICES 5 Hrs.

Financial system – An overview, Indian financial system, Global financial system, Financial services – An

overview.

UNIT 2: MONEY MARKETS 6 Hrs.

Role and responsibilities of RBI with respect to money market, RBI monetary policy and its relevance to

money market. Money market, Call money market, Commercial paper market, Commercial bill market,

Certificate of deposit (CD), Treasury bills, Govt. Securities market

UNIT 3: CAPITAL MARKETS 10 Hrs.

Capital markets – An overview, Capital market instruments, Capital market reforms, New issues market –

A Conceptual framework, New issues market – An evaluation, Prospectus, Global depository receipts -

Stock exchange – An overview, Stock exchange trading, Stock exchange – Regulatory framework, Indian

stock exchanges – A Profile, Insider trading, listing, Delisting, SEBI – Functions and Working,

Restructuring of Indian stock exchanges – Major issues - Ethical dimensions of Financial Markets. Need

for self-regulation and role of SEBI in the functioning of financial markets – Bond Markets, Mortgage

Markets, Foreign Exchange, Derivative Securities Markets

UNIT 4: FINANCIAL INSTITUTIONS 10 Hrs.

Clearing Corporation of India Limited (CCIL), Credit Information Bureau of India Limited (CIBIL),

Discount and Finance House of India Limited (DFHI), Over-the-Counter Exchange of India Limited

(OTCEI), National Securities Depository Limited (NSDL), National Housing Bank (NHB), Export Import

Bank of India (EXIM)

Nonbank Financial Institutions: Lending Institutions; Finance Companies; NBFCs; Insurance Companies;

depositories and depository participants, clearing corporations, Brokerage Firms; Merchant and

Investment Banks; Mutual Funds and Hedge Funds; Pension Funds; registrars and transfer agents, credit

P a g e | 9

rating agencies, portfolio management services, asset reconstruction companies; money market institutions

– primary dealers, DFHI, CCIL, FIMMDA; insurance institutions – life insurance companies, non-life

insurance companies, actuaries.

UNIT 5: FINANCIAL SERVICES AND OPERATIONS 15 Hrs.

Credit rating, Hire purchase finance, Factoring and Forfaiting, Leasing- An overview, Lease evaluation,

Mutual funds, Securitization, Venture capital and Private equity funds - Financial innovation, their

importance and impact on the functioning of the institutions. Potential systemic impact of these innovations

and their ethical dimension.

UNIT 6: FINANCIAL REGULATORY BODIES 6 Hrs.

Regulatory bodies – Self Regulatory Organisation (SROs), SEBI, RBI, IRDA. International financial

institutions – Federal Reserve Bank (US); Bank of England; European Central Bank; Securities Exchange

Commission (SEC).

UNIT 7: RISK MANAGEMENT IN FINANCIAL INSTITUTIONS 8 Hrs.

Types of Risks Incurred by Financial Institutions; Managing Credit Risk on the Balance Sheet; Managing

Liquidity Risk on the Balance Sheet; Managing Interest Rate Risk and Insolvency Risk on the Balance

Sheet; Managing Risk off the Balance Sheet with Derivative Securities; Managing Risk off the Balance

Sheet with Loan Sales and Securitization.

P a g e | 10

MFIN134 - Financial Management


Max Marks: 100 Credits: 4

COURSE DESCRIPTION: This course introduces students to the concepts and theories of corporate

finance that underlie the techniques which are offered as support for the understanding, evaluation and

resolution of financial managers’ problems. This course provides the knowledge base for understanding

in-depth the principles and techniques of business finance (corporate financial management and

investments). The syllabus covers all the aspects related to financial management principles and skills so,

as to provide a holistic understanding of the subject. Lectures and readings will provide an introduction

to the financial decisions of firms, cost of capital and capital structure decisions- capital budgeting

principles, investment evaluation, working capital estimation and management and dividend decisions. As

a perquisite, student should know basics of finance- source of finance and time value of money concepts

UNIT 1: INTRODUCTION TO FINANCIAL MANAGEMENT 7 Hrs.

Financial Management: Meaning, nature and scope of finance; financial goal - profit vs. wealth

maximization; Investment, Financing and Dividend decisions - Finance functions – organization structure

– functions of finance manager in 21st century – Modern role - treasurer and controller. Emerging role of

finance managers – Sources of long term finance.

UNIT 2: VALUE AND RETURN 7 Hrs.

Value and Return – time preference for money – Future value – single cash flow – annuity – annuity of a

future sum(sinking fund)Present value – single cash flow – annuity – uneven cash flow – growing annuity

UNIT 3: INVESTMENT DECISION 12 Hrs.

Nature of investment decision, Type of investment decision, Investment evaluation criteria, Compare &

contrast NPV & IRR. Determining cash flows for investment analysis: Cash flows v/s profit Incremental

cash flows, components of cash flows.

UNIT 4: COST OF CAPITAL 12 Hrs.

Cost of Capital: Meaning and significance of cost of capital: Calculation of cost of debt, preference capital,

equity capital and retained earnings; Combined cost of capital (weighted); Cost of equity and CAPM;

Leverages: Meaning and types of leverages in business – Financial leverage and its impact on EPS –

Operating leverage – combined leverage – degree of leverages – working capital leverages – practical use

of leverages

P a g e | 11

UNIT 5: CAPITAL STRUCTURE DECISIONS 10 Hrs.

Capital Structure decisions – Capital Structure & Market value of a firm. Theories of capital structure –

NI approach, NOI approach, Modigliani Miller approach, traditional approach. Arbitrage process in capital

structure. Planning the capital structure: EBIT and EPS analysis. ROI & ROE analysis. Capital structure

policy.

UNIT 6: WORKING CAPITAL MANAGEMENT 12 Hrs.

Needs for investing in current assets, Concept of working capital management. Approaches in working

capital, Factors affecting working capital management Estimation of working capital requirement,

Receivable management, Working capital finance decision.

P a g e | 12

MFIN135 - Accounting for Finance



COURSE DESCRIPTION: Accounting is at the heart of the information age. By studying this course,

the student will learn about the concepts, rules and procedures, and analysis that are useful in everyday

activity connected to finance. This course discusses the basic concepts of accounting, details the

preparation of income statement and balance sheet and financial statement analysis.

It helps in developing the analytical ability of the student by using various Managerial accounting methods

and techniques. In addition, the student gets to learn about the various cost control aspects that would be

required for a manager, in terms of designing, Using and planning control systems to achieve firm’s

objectives.

UNIT 1: FINANCIAL ACCOUNTING 10 Hrs.

Accounting Concepts and Conventions – Recording of Business Transactions – Double Entry System –

Journal – Ledger – Trail Balance – Preparation of Final accounts - Final Accounts of Companies– Banking

Company accounts – Capital and Reserves- Preparation of Final Accounts of Banking Companies- Non

Performing assets – Asset Classification and Provisioning

UNIT 2: FINANCIAL STATEMENT ANALYSIS 12 Hrs.

Spotting the problem of financial statements – The need for three financial statements to analyze the

performance of an enterprise – The interconnection between profit and loss, balance sheet and cash flow

statements – understanding the quality of earnings through financial statements – Tools of Financial

Statement Analysis -Comparative and Common Size Statement - Trend analysis - Ratio analysis - Funds

Flow and Cash Flow Statements

UNIT 3: COST CONCEPTS AND CLASSIFICATIONS 2 Hrs.

Cost, Cost centers, Cost Unit, Method of costing, Techniques of costing, Classification of cost- fixed and

variable, cost concepts for decision making.

UNIT 4: COSTING & CONTROL OF INVENTORY, LABOUR & OVERHEADS 10 Hrs.

Control of Materials, Inventory systems, Inventory Control Techniques – ABC analysis, EOQ, Re-order

point, Safety Stock, Cost of inventory and costing methods – LIFO, FIFO, HIFO, Average cost, JIT

Inventory.

P a g e | 13

Costing and Control of Labour – Accounting for Labour – Incentive plans – Differential piece rate and

premium bonus plans – Measurement of labour turnover – efficiency rating procedures Costing and control

of overheads – allocation and absorption of overheads

UNIT 5: JOB, BATCH AND PROCESS COSTING METHODS 6 Hrs.

Job costing, Batch costing, Process Costing, WIP (Equivalent Production), Normal & abnormal losses,

Internal process profits, Joints & by-product costing.

UNIT 6: MARGINAL COTING & COST VOLUME PROFIT ANALYSIS 8 Hrs.

Common cost behavior patterns – cost estimation method – Breakeven analysis– contribution margin and

what if analysis – multi product analysis – Assumptions in CVP analysis – Variable costing and Full

costing – benefits of variable costing for internal reporting purpose. Incremental analysis – make or buy

decisions – dropping a product line – qualitative considerations in decision making including ethical

dimensions.

UNIT 7: COST ALLOCATION AND ACTIVITY BASED COSTING 4 Hrs.

Process of cost allocation – traditional product costing systems – problems with cost allocation – activity

based costing – Activity based management as a tool to improve efficiency (Self Learning area).

UNIT 8: BUDGETARY PLANNING AND STANDARD COSTING 8 Hrs.

Uses of budgets in planning and control (Self Learning area) – developing the budget – The master budget

– budgeted balance sheet – static and flexible budgets – standard costs and budgets – development of

standard costs – variance analysis – material variance.

P a g e | 14

MFIN136 - Contemporary Business Management



COURSE DESCRIPTION: This course introduces students to the foundations of businesses and

organizations and the value they add to the society. Students will examine the dynamics of business

decision making and demonstrate the ability to identify, describe and apply the essential business concepts,

theories and practices. The relationship among business activities will be studied to determine their

interactions with the economic, political, legal, global and social environments.

UNIT 1: BUSINESS IN A GLOBAL ENVIRONMENT 7 Hrs.

The Six Eras in the History of Business, the Colonial Period the Industrial Revolution. The Age of the

Industrial Entrepreneur. The Production Era. The Marketing Era the Relationship Era, Managing the

Technology Revolution, From Transaction Management to Relationship Management. Strategic Alliances

and Partnerships

Creating Value through Quality and Customer Satisfaction. Competing in a Global Market. Productivity:

Key to Global Competitiveness. Developing and Sustaining a World-Class Workforce. Preparing for

Changes in the Workforce. Reaping the Benefits of Diversity. A New Type of Manager, Importance of

Vision. Importance of Critical, Thinking and Creativity. Ability to Steer Change,

UNIT 2: ETHICAL BEHAVIOUR AND SOCIAL RESPONSIBILITY 6 Hrs.

Concern for Ethical and Societal Issues, Individual Business Ethics, Development of Individual Ethics.

On-the-Job Ethical Dilemmas, How Organizations Shape Ethical Conduct

Ethical Awareness. Ethical Reasoning. Ethical Action. Ethical Leadership, Controlling Business Behavior

through Government Regulation, Acting Responsibly to Satisfy Society

Responsibilities to the General Public. Responsibilities to Customers Responsibilities to Employees.

Responsibilities to Investors and the Financial Community

UNIT 3: GLOBAL ECONOMIC CHALLENGES OF THE 21ST CENTURY 7 Hrs.

The Shift toward a Global Information Economy. Effect of an Ageing Population, Improving Quality and

Customer Service. Maintaining the Competitiveness of the Workforce. Creating a Long-Term Global

Strategy. Why Nations Trade International Sources of Factors of Production. Size of the International

Marketplace. Major World Markets. Absolute and Comparative Advantage Measuring Trade Between

Nations Barriers to International Trade, Social and Cultural Differences. Economic Differences. Political

and Legal Differences. Types of Trade Restrictions Reducing Barriers to International Trade, Going Global

From Multinational Corporation to Global Business, International Organization Structures.

P a g e | 15

UNIT 4: STARTING YOUR OWN BUSINESS: THE ENTREPRENEURSHIP ALTERNATIVE

7 Hrs.

What Is an Entrepreneur? Categories of Entrepreneurs. Reasons to Choose Entrepreneurship as a Career

Path Being One's Own Boss. Financial Success. Job Security. Quality of Life.

The Environment for Entrepreneurs. Globalization. Education. Entrepreneurship around the World. The

Influence of Entrepreneurs on the Economy Innovation. Job Generation Diversity. Characteristics of

Entrepreneurs Vision. High Energy Level. Need to Achieve Self-Confidence and Optimism. Tolerance for

Failure. Creativity. Tolerance for Ambiguity. Internal Locus of Control. Starting a New Venture. Selecting

a Business Idea. Creating a Business.

UNIT 5: MANAGEMENT, LEADERSHIP, AND THE INTERNAL ORGANIZATION 12 Hrs.

What Is Management? The Management Hierarchy. Skills Needed for Managerial Success. Special Skills

for Overseas Managers. Managerial Functions. The Need for Vision

The Importance of Planning. Types of Planning. Planning at Different Organizational Levels. The Strategic

Planning Process. Defining the Organization's Mission. Assessing Competitive Position. Setting

Objectives for the Organization. Creating Strategies for Competitive Differentiation. Implementation:

Turning Strategy into Action. Monitoring and Adapting Strategic Plans. Managers as Decision Makers.

Programmed and Nonprogrammer Decisions. How Managers Make Decisions Managers as Leaders.

Leadership Styles. Which Leadership Style Is. Best. Corporate Culture Structure in Organizations.

Departmentalization. Delegating Work Assignments. Types of Organization Structures. Comparing the

Four Types of Organization Structure. Coordination and Control. Change Management. Organizational

Climate.

UNIT 6: HUMAN RESOURCE MANAGEMENT AND MOTIVATION 9 Hrs.

Human Resource Management: A Vital Organizational Function - Human Resource Planning. Recruitment

and Selection. Finding Qualified Candidates. Selecting and Hiring Employees. Orientation, Training, and

Evaluation. Training Programs. Performance Appraisals. Compensation Employee Benefits. Flexible

Benefits. Flexible Work. Employee Separation. Downsizing. Outsourcing. Motivating Employees

Maslow's Hierarchy of Needs Theory. Motivating Employees through Job Design. Motivating Employees

through Managers' Attitudes. Human Resources Concerns for the 21st Century Demographic Trends.

Workforce Trends. Economic Trends. Work/Life Trends

P a g e | 16

UNIT 7: IMPROVING PERFORMANCE THROUGH EMPOWERMENT, TEAMWORK AND

COMMUNICATION 7 Hrs.

Empowering Employees Sharing Information. Sharing Decision-Making Authority. Linking Rewards to

Company Performance. Teamwork. What Is a Team? Team Characteristics Team Size . Team Roles .

Team Diversity. Teamwork in Small Organizations. The Process of Forming Teams . Stages of Team

Development . Team Cohesiveness . Team Norms . Team Conflict. Styles of Conflict Resolution The

Importance of Effective Communication

UNIT 8: THE PROCESS OF COMMUNICATION 5 Hrs.

The Process of Communication . Basic Forms of in Teams. Communication Outside the Organization.

Communication Technology Benefits of Communication Technology. Challenges of Communication

Technology. International Business Communication.

P a g e | 17

MFIN137 - Financial Regulations and Corporate Governance



COURSE DESCRIPTION: Knowledge about corporate governance and regulations is crucial for every

finance professional. This course gives an overview of the need and importance of corporate governance.

It also gives an insight in to different regulations in financial markets. Financial regulators, their policies

and guidelines are discussed in detail in this course.

UNIT 1: CORPORATE GOVERNANCE 4 Hrs.

Objectives; definitions and importance of corporate governance; reputation, competition and corporate

governance; corporate ethics; corporate governance and corporate responsibility; globalization and

corporate governance; Models of corporate governance; mechanisms of corporate governance.

UNIT 2: SHAREHOLDERS AND STAKEHOLDERS 4 Hrs.

Shareholder rights; equitable treatment; responsibilities of shareholders, minority shareholders’ protection,

stakeholder protection.

UNIT 3: BOARD OF DIRECTORS 6 Hrs.

Structure and independence of the board; responsibilities and duties of the board; selection, remuneration

and evaluation of the board; board committees; the board and the management.

UNIT 4: AUDIT COMMITTEE 4 Hrs.

Organization of audit committee; responsibilities of the audit committee; working with auditors and

management.

UNIT 5: CODE OF CORPORATE GOVERNANCE 6 Hrs.

SEBI Code of Corporate Governance (Narayanmurthy Committee Report); Ministry of Finance

(Nareshchandra Committee Report); US Sarbanes-Oxley Act of 2002; The UK Corporate Responsibility

Act 2002.

UNIT 6: ECONOMIC RATIONALE OF FINANCIAL REGULATION 6 Hrs.

Externalities; market imperfections and failures; economies of scale in monitoring; moral hazard;

mandatory versus voluntary disclosure; regulation and competition; alternative approaches to regulation.

UNIT 7: LEGAL FRAMEWORK OF CAPITAL MARKETS 8 Hrs.

Securities Contracts (Regulation) Act, 1956, and Securities Contracts (Regulation) Rules, 1957; Foreign

Exchange Management Act (FEMA); Overview of relevant provisions of the Companies Act, 1956, Indian

Stamp Act, Registration Act, Competition Act; , Stock exchanges – trading rules, listing agreement,

P a g e | 18

enforcement of listing compliances; Banking Regulation Act; Reserve Bank (Board for Financial

Supervision (BFS)) Regulations.

UNIT 8: SEBI REGULATIONS AND GUIDELINES 6 Hrs.

SEBI Act, 1992; SEBI (ICDR) Regulations; SEBI (Insider Trading) Regulations; SEBI (Substantial

Acquisition of Shares and Take Over) Regulations; SEBI (Buyback of Securities) Regulations; SEBI

(Foreign Institutional Investors) Regulations.

UNIT 9: REGULATION OF MUTUAL FUNDS 8 Hrs.

SEBI (Mutual Funds) Regulations; taxation of a mutual fund - resident unit holders, non-resident

individual unit holders, non-resident unit holders being a company; Regulation of Overseas Investment in

the Domestic Mutual Fund Sector - Setting up an AMC, Investing via a Domestic Mutual Fund, Investing

as a FII in an Indian mutual fund, role of self-regulatory organisations.

UNIT 10: OVERVIEW OF REGULATORY BODIES 4 Hrs.

Reserve Bank of India, Securities Exchange Board of India, Forward Market Commission, Insurance

Regulatory Development Authority, Providend Fund Regulatory and Development Authority, Ministry of

Finance, Ministry of Corporate Affairs, Registrar of Companies.

UNIT 11: INTERNATIONAL FINANCIAL REGULATION 4 Hrs.

Challenges of international regulation of financial markets; overview of financial regulation in USA, UK,

EU.

P a g e | 19

SECOND SEMESTER

MFIN231 - Wealth Management



COURSE DESCRIPTION: This course examines the investment and financial issues arising from

personal wealth management activities. The course commences with an introduction of the financial

planning industry and the regulatory framework. It then covers various topics required for the construction

of a comprehensive financial plan including the identification of client financial status and goals, asset

allocation, securities trading, managed funds, superannuation, estate planning and social security. This

course focuses on understanding the nature, usage and regulations on the advice of various financial

products and legal instruments for developing personal wealth management plan.

UNIT 1: INTRODUCTION TO FINANCIAL PLANNING 10 Hrs.

Concepts, Role of Financial Planner, Personal Financial Planning Process, Ethical and professional

consideration in Financial planning – Code of ethics, Contract and Documentation, Client Data Collection,

Client Data Analysis, Life Cycle Wealth Cycle - Risk Profiling and Asset Allocation - Systematic

Approach to Investing - Systematic Investment Plan (SIP) - Systematic Withdrawal Plan (SWP) -

Systematic Transfer Plan (STP), Financial Plan - Goal-based Financial Plan - Comprehensive Financial

Plan - Financial Blood-Test Report (FBR) - Financial Planning in India, Legal aspects of Financial

Planning.

UNIT 2: ECONOMY & WEALTH MANAGEMENT 7 Hrs.

Financial Planning to Wealth Management, Economic Cycles and Indicators - Lag Indicators - Co-incident

Indicators - Lead Indicators, Interest Rate Views, Currency Exchange Rate, The Deficits -Revenue Deficit

and Fiscal Deficit - Current Account Deficit

UNIT 3: CLIENT RELATIONSHIP MANAGEMENT 8 Hrs.

Strategic Business Planning Process - Client segmentation – Profile - Expose - Strategize - Execute -

Monitor - Review - Strategic value formula - Effective communication and Negotiation

UNIT 4: INVESTMENT & RISK MANAGEMENT 10 Hrs.

Role of Equity, Debts & Alternative Assets, Active and Passive Exposures, Returns from Passive Exposure

to S&P CNX Nifty, Sector Exposure and Diversification, Deposits and Debt Securities, Credit Exposure

and Debt Investments, Concentration Risk, Passive Investments in Debt, Alternative Assets Investment

P a g e | 20

Routes, Alternative Assets returns from Gold, Real Estate, Role of Real Estate, Real Estate Investment

Routes, Real Estate Indices – Assets & Liabilities, Nomination, Inheritance Law, Will & Trust, Risk

Management through Insurance.

UNIT 5: ASSET ALLOCATION AND STRATEGIES 10 Hrs.

Asset allocation Decision, Equity portfolio strategies – Active Vs Passive, Management strategies, Value

Vs growth investing, Asset allocation Strategies – Tactical, Fixed & Flexible, Asset Allocation Returns in

Equity & Debts, Asset Allocation Returns in Equity, Debt & Gold, Bond Portfolio Management Strategies

– Passive – Buy and Hold, Indexing – Active – interest rate anticipation, Valuation analysis, Credit

analysis, Yield spread analysis and Bond swaps – Core plus management strategy – Immunization

strategies – Allocation to Speculation, Diversification in Perspective.

UNIT 6: RETIREMENT PLANNING & EMPLOYEE BENEFITS 8 Hrs.

Introduction to Retirement Planning - Types of Retirement Plans – Defined Benefit and Defined

Contribution plan, Superannuation and other retirement plans, Group Life and Health Insurance;

Retirement planning and Strategies, Post Retirement Counseling, Retirement Income Streams Pension

Sector Reforms

UNIT 7: ADVANCED FINANCIAL PLANNING 7 Hrs.

Financial Planning process, Strategies of goal setting, Analysis of Financial situation of the client,

Developing and implementing a plan, Monitoring and Review of a Financial Plan - Case studies on

personal financial plan.

P a g e | 21

MFIN232 - Financial Markets & Asset Classes



COURSE DESCRIPTION: This program will help you gain a comprehensive understanding of foreign

exchange markets, the underlying theories governing foreign exchange, the instruments traded, spot and

forward forex market and how to hedge forex risk using credit derivatives. The program is structured to

give the user a complete perspective on the debt and money markets from theory to application.

Participants will learn some of the most common debt & money market instruments along with their

features used in the world.

UNIT 1: OVERVIEW OF FINANCIAL MARKETS AND ASSET CLASSES 8 Hrs.

Cash and Money Markets, Bond markets, Foreign Exchange Markets, Equities Markets, Indices and

Stocks, Derivatives Markets, Products and Settlement, Commodities Markets and Products, Saving and

Investment Products, Mutual Fund and other Investment Products

UNIT 2: EQUITIES 20 Hrs.

Introduction to Equity Market: Introduction to Capital Markets, Equity Capital Markets , Raising Equity

Through IPO, Raising Equity Through Private Sources , Equity buybacks, de-listing and reversion to a

‘private’ company

Equity Instruments & Their Characteristics: Stock Prices and Corporate Actions, Preference Shares,

Depository Receipts, Rights Issues & Warrants, Convertibles, Equity Structured Products

Participants in the Equity Markets: Introduction and Role of the Buy Side, Buy Side Participants,

Introduction and Role of Sell Side, Services and Participants in the Sell Side, Market Makers

Types of Equity Markets: Exchanges and Indices in the Equity Markets, Indices and their roles, Understand

the difference between exchange and OTC markets, Types of weighted index, other indices and global

indices, Electronic and Hybrid Markets and Order and Quote Driven Markets, Global Equity Markets

Estimating Cost of Equity: Estimating risk and return for shares, Worked examples – Estimating risk and

return for shares using spreadsheets, Risk free rate, Equity Beta, Equity risk premium (ERP), Evaluate –

The ways of calculating ERP

Trading of Equity Instruments: Equity Investments and its benefits and risks, Stock Quotations, Delivery

or cash trading, Long and short positions, Leverage and Margin, Investing, trading and hedging, Placing

Orders-limit orders, stop loss orders and GTD/GTC orders, Online and Offline Trading, Introduction to

Trade Life Cycle, Clearing and Settlement

P a g e | 22

UNIT 3: FIXED INCOME SECURITIES 10 Hrs.

Overview of Debt Capital Markets: Characteristics of Debt Capital Markets, The differences between

equity and debt products, the differences between loans and bonds, Hybrid securities, Securitization

Bond-An Introduction: Bond definition, Bond Issuer & Bond Investor, Types of bond, Bond

characteristics, Zero Coupon Bond, Price/yield relationship, Government bond markets, The Eurobond

market

UNIT 4: MONEY MARKET INSTRUMENTS AND OPERATIONS 10 Hrs.

Overview to Money Markets: Objectives, Introduction to Money Markets, Components of Money Markets,

Interest rates in the Money Markets , Market Participants in Money Market, Risks involved

Money Markets Instruments: Introduction, Coupon bearing instruments& features, Discount instruments

& features

Money Market Operation: Fund Management, CRR Maintenance, Liquidity Management, Money Market

Operations, Managing banks' surplus funds, Trading opportunities in Money market, Overnight Call

Money Market, Repos and Reverse Repos, CBLOs, Marginal Standing Facilities

UNIT 5: FOREX MARKET 12 Hrs.

Introduction to Forex Market: What is foreign exchange market, Functions and purposes of the FX market,

Introduction to types of Foreign Exchange Market?

Participants in the Foreign Exchange Market: Consumers & Travelers, Businesses, Investors &

speculators, Commercial & Investment Banks, Government & Central Banks

Theories Governing Foreign Exchange: Interest rate parity, Purchasing power parity, Nominal v/s real

exchange rates, etc.

Spot Market: Market organization, Quotation conventions, Direct and indirect prices, Cross rates, Value

of a pip, Interpreting news and economic statistics, Delivery and operations

Forward Forex Market: Outright forward and swap deals, Relation between spot & forward markets,

Quoting forward rates, Quoting swap points, Forward discounts and premiums, Forward transactions

P a g e | 23

MFIN233 - Investment & Portfolio Management



COURSE DESCRIPTION: Students of Masters in Finance would find this course to be important as its

applications can be seen while understanding the operations of financial markets. The coursse focuses on

the relationship between risk and return and familiarizes the students in to the world of portfolio

management. Proper analysis of the market before taking investment decisions and efficient management

of the portfolio are very crucial for a successful investor. This course therefore throws some light on the

concepts of portfolio theories and also on the efficient portfolio management strategies which will help the

future managers to develop an investment attitude and also learn the tricks of the trade.

UNIT 1: RISK, RETURN AND HISTORICAL RECORD 10 Hrs.

Determinants of Interest rates – Real and Nominal Rates of Interest, Equilibrium rates of interest, taxes

and interest rates, Comparing artes of returns for different holding periods, Risk and risk premiums, HPY,

HPR, Expected Returns and Standard Deviations, Excess Returns and Risk Premiums, Time Series

analysis of past rates of return, Times Series Vs Scenario Analysis, AM, GM, Variance and Standard

Deviation, Reward to Volatility Ratio, Normal Distribution, Deviations from Normality and Alternate Risk

Measures, Value at Risk, Low Partial Standard Deviation and Sortino Ratio, Relative Frequency of Large

Negative 3-sigma Returns, Historic Returns on Risky Portfolios, Normality and Long Term Investments –

Short-Run VS Long run risk, Forecasts for the long haul

UNIT 2: CAPITAL ALLOCATION TO RISKY ASSETS 6 Hrs.

Risk and risk aversion, Risk, speculation and gambling, Risk aversion and utility values, Estimating risk

aversion, Capital allocation across risky and risk-free portfolios, risk free asset, Risk tolerance and asset

allocation, Non-Normal Returns, Passive Strategies, The Capital Market Line

UNIT 3: OPTIMAL RISKY PORTFOLIOS 4 Hrs.

Diversification and portfolio risk, portfolio of two risky assets, Markowitz Portfolio Optimization Model,

Risk pooling, risk sharing and the risk of long term investments

UNIT 4: INDEX MODELS 5 Hrs.

Input list of Markowitz Model, Systematic Vs Firm Specific Risk, The single Index Model, Index model

and diversification, Estimating the single index model, Security Characteristic Line, Estimate of Alpha and

Beta, Industry version of the index model, Portfolio construction using index model – Alpha and security

analysis, optimal risky portfolio using single index model.

P a g e | 24

UNIT 5: CAPM AND APT 6 Hrs.

Security Market Line, CAPM and Single Index model, Input list for CAPM, Risk free borrowing and zero

beta model, Consumption based CAPM and Liquidity based CAPM, CAPM and investment Industry.

Multifactor models, APT, CAPM and Single index model, FAMA-French Three-Factor Model.

UNIT 6: EFFICIENT MARKET HYPOTHESIS 5 Hrs.

Random Walk and EMH, Versions of EMH, Implications of EMH, Are markets Efficient – Weak form

tests, Semi-strong form tests and strong form tests, interpreting the anomalies, Bubbles and market

efficiency

UNIT 7: PORTFOLIO PERFORMANCE EVALUATION 6 Hrs.

Sharpe Ratio, Treynor Ratio, Information ratio, Role of alpha, Performance measurement with changing

portfolio composition, Market timing, Performance attribution procedures – asset allocation decisions,

sector and security selection decisions

UNIT 8: THE THEORY OF ACTIVE PORTFOLIO MANAGEMENT 6 Hrs.

Optimal portfolios and Alpha Values, Treynor-Black Model and Forecast Precision, The Black-Litterman

Model, The value of Active Management.

UNIT 9: PORTFOLIO REBALANCING 12 Hrs.

Rebalancing & Reallocation: Objectives, Approaches to rebalancing, Advantages and disadvantages,

‘Drift’ in the portfolio, Relative performance.

Portfolio Rebalancing Strategies: Calendar Method, Corridor Method, CPPI based approach.

P a g e | 25

MFIN234 - Trading In Financial Markets



COURSE DESCRIPTION: This professional training program is designed to equip the participants with

the knowledge of technical analysis tools and strategies to be used for the purpose of designing an analysis

framework for the purpose of systematic trading. The program deals with how to identify high probability

successful setups that have high reward-to-risk ratios and high hit ratios. The course will be taught through

Hands-on live trading/simulated trading sessions

UNIT 1: INTRODUCTION TO TECHNICAL ANALYSIS 4 Hrs.

Basic concepts - Price discounts everything-Price movements are not totally random-Technical Analysis:

the basic assumption-Strengths and weakness of technical analysis-Importance of technical analysis -

Weaknesses of technical analysis.

Understanding Relative Strength, Understanding Inter-Market Analysis, Identifying Important Resistances

and Supports, Trading range, Identifying Tops/bottoms, Identifying Breakouts, Working with Gaps,

Fibonacci Retracements, Forecasting and Price Targets, How to use above concepts to enter into high

probability successful trades, Examples from historical charts and live markets.

UNIT 2: TRADING PSYCHOLOGY & RISK MANAGEMENT 6 Hrs.

Risk management, Components of stop loss, analyze risk reward ratio, trailing stop loss, booking profit,

uses of stop loss, qualities of successful traders, golden rules of traders, do’s and don’ts in trading, rules to

stop losing money, choosing the right market to trade, importance of discipline in trading

UNIT 3: CHARTS AND PATTERNS 10 Hrs.

Basic Candlestick Review, Advanced Candlestick Patterns, Reversal patterns, Continuation patterns,

Importance of Dojis and their variations, Identifying key market top and bottoms using candlesticks

Working with Key Patterns: Double and Triple Tops, Heads and Shoulders, Triangles, Rectangles,

Wedges, Pennants, Flags, Forecasting and Price Targets, How to use the patterns to enter into highly

successful trades

UNIT 4: PRICE ACTION BASED STRATEGIES 12 Hrs.

Introduction to Price Action strategy, What is Price Action, Interpreting price action, Understanding

Demand and Supply Zones, Identifying and Applying zones, How to calculate reward to risk ratio on a

trade

Trends and Price Action Strategies: Stages in Trend Identification, Trend Analysis, Entry and Exit using

Price Action strategies, Understanding reward-risk ratio of a trade, Understanding highly successful trade

setups.

P a g e | 26

Strategies: Momentum Breakout and strategies, Momentum Breakdown and strategies, Zonal Retracement

setups and strategies.

Using Price Action Strategies with Technical Analysis: Moving Average, Average True Range, Bollinger

Bands, Oscillators and strategies, Time Zones for high probability trades, Trading Gaps

UNIT 5: TECHNICAL INDICATORS 12 Hrs.

Technical Indicators and Strategies: Trading strategies based on Technical Indicators, Moving Averages

and Strategies, Bollinger Bands and Strategies, Ichimoku System, Oscillators – RSI, MACD, Stochastics,

ADX, ATR and strategies based on them, Understanding Open Interest Analysis, Momentum and Mean

Reversion Strategies, Advanced Technical Analysis strategies.

Directional Momentum: Average Directional Index (ADX), Positive Directional Index (+DI) and Negative

Directional Index (-DI), Calculation and interpretation of ADX, +DI and -DI for generating Buy/Sell

signals. Moving Averages and types, trading strategies using Moving Averages, Bollinger Bands, Trading

strategies using Bollinger Bands.

Oscillators and Strategies: What is RSI, Calculation and interpretation of RSI oscillator, Trading strategies

using RSI,What is MACD, Calculation and interpretation of MACD oscillator, Trading strategies using

MACD, What is Stochastics oscillator, Calculation and interpretation of Stochastics oscillator, Trading

strategies using Stochastics, Other oscillators and their strategies.

Fibonacci Based Retracement Systems: Fibonacci Ratios, Fibonacci Retracement & Application of

Fibonacci Levels, Calculation and interpretation of Fibonacci Retracement levels, for determining Support

and Resistance; Generate Buy/Sell decisions.

Elliot Waves: Types of Waves, Identifying the wave formations in Elliott wave, Trading using Elliott

Waves, Integrating other technical elements with Elliot Waves.

UNIT 6: ADVANCED TRADING STRATEGIES WITH FUTURES AND OPTIONS 10 Hrs.

Trading Futures Markets Using Technical Analysis: Identification of major and intermediate trends,

Identification of Demand and Supply zones, Trading Strategies & systems using technical tools and

indicators, Trade and position management, Markets Analysis and Inter-Market Relationship, Open

Interest based strategies, Popular Quantitative Trading strategies.

Trading Vanilla Spreads with Technical Analysis: Setting up Bull and Bear Spreads, Option Greeks and

profiles, Timing Vertical Spreads using Technical Analysis, Greek Profiles, Trading Calendar Spreads,

Managing Winning/Losing positions, Legging using Technical Analysis.

Trading Volatility Strategies with Technical Analysis: Straddle and Strangle setup, Timing Volatility

strategies using Technical Analysis Greek profiles, Managing Winning/Losing positions, Legging using

Technical Analysis.

Trading Spread Combinations with Technical Analysis: Rationing the Spread, Trading Ratio Spreads and

Back spreads for breakouts or breakdowns, Trading Butterflies using Technical Analysis, Butterfly

Scalping using Technical Analysis, Trading Condors and Iron Condors, Broken Wing variations, Greek

profiles, Managing Winning/Losing positions, Legging using Technical Analysis.

P a g e | 27

UNIT 7: INTEGRATING TRADE 6 Hrs.

Understanding Trading styles, Order Types, Position Sizing, Order Management, Multiple Time Frame

Analysis, Multiple Market Analysis, Stock Selection Process, Risk Management, Integrating it all!

P a g e | 28

MFIN235 - Applied Equity Research



COURSE DESCRIPTION: Equity research involves gathering relevant information about a company,

analyzing it, and coming up with a recommendation that investors and Financial Institutions can use for

decision making purposes. These reports are used by internal and external stakeholders to make important

investment decisions.

This course covers both qualitative (Economy, Industry & Company) & quantitative analysis (Financial

Statements, Ratio analysis & valuation) using live cases. This course also shows you how to write a proper

research report with detailed examples.

UNIT 1: EQUITY RESEARCH INTRODUCTION 5 Hrs.

Equity Research Overview, Overview of Equity Research, and Types of Research: Buy side research and

Sell side research, Typical Day on the life of an Equity Research, Analyst

Equity Financing: Primer on Equity Markets, Minority interest- impact on equity financing, Common

shareholders- forecasting dividends and retained earnings, Share buy-backs and rights issues.

Debt Financing: Linking cash flow and debt requirements, Different types of debt financing.

UNIT 2: UNDERSTANDING FINANCIAL STATEMENTS AND RATIO ANALYSIS 8 Hrs.

Financial Statements, Understanding key sections of an Annual report, Profit & Loss Statement, Balance

Sheet, Cash Flow Statement, Ratio Analysis, Profitability Ratios, Return Ratios, Liquidity Ratios,

Solvency Ratios, Interpreting ratios, Which ratios for which companies?, When to use, How to use,

Interpreting ratios

UNIT 3: MACROECONOMIC ANALYSIS 5 Hrs.

Important tools, Key Economic Factors: GDP, Industrial, Production, Inflation, Unemployment, Business

and consumer confidence and Oil prices. Economic Cycles: How valuation of a company gets affected by

economic activities?, Understanding economic cycles, Intermarket analysis – how do different sectors and

asset classes move with economic cycle expansions or contractions

UNIT 4: INDUSTRY AND COMPANY ANALYSIS 5 Hrs.

Industry Analysis: Process: Identifying sub-sectors, Key revenue drivers, Key concerns, Industry Risk

Assessment: Porter 5 Forces & Mark Scott’s Value Driver model, Business Risk: Operating Cycle

Analysis, Specific Industry Analysis: Oil & Gas, IT, Telecom, Banking and Autos.

P a g e | 29

Company Analysis: Process: Analysing the business, Revenue drivers, competitors, Management team,

Profitability Analysis, Debt Management Ratios, Optimum Capital Structure, Cash Flow Analysis

UNIT 4: DCF VALUATION AND COST OF CAPITAL 12 Hrs.

What is Cost of Capital, Weighted Average Cost of Capital Calculating WACC, Valuing negative cash

flows Time Varying Cost of Capital, Forecasting FCF, FCFF and FCFE concept Pitfalls in FCF calculation

Estimating normalized FCF, Forecasting of FCF for target company, Terminal value, TV using the

perpetuity method Liquidation value, Why the value drivers method gives more stable and meaningful

results, Running sensitivities Review of final DCF model, Scenario analysis, What are scenarios?,

Developing flexible scenarios with excel Review of completed model for target company

UNIT 5: MULTIPLES BASED VALUATION 6 Hrs.

Equity multiples, What do equity ratios tell us? Decomposing P/Es: linking growth, Cost of equity and

RoE, Free cash flow yield, EV multiples, What do EV multiples tell us?, Choosing the most relevant

multiples, Theoretical EV ratios, Valuation Ratios, Price to Earnings (P/E) ratio P/E re-rating and de-rating

PEG ratio, EV/EBITDA, Price to Book Value (P/BV) ratio

UNIT 6: VALUATION COMPLEXITIES 8 Hrs.

Valuation Specifics, Valuing a one business company, Valuing a conglomerate: sum of the parts valuation,

Valuing cyclical and fast growing companies Interpreting results and deriving an implied valuation for the

target company

Valuations using real options, Normal distributions and DCF, When the world is not normally distributed

Valuing companies using binomial distribution Building a binomial model using Real options

Valuing Distressed assets, Why DCF is not appropriate Estimating default risks, Distressed assets as

options

Valuing fast growing companies, The concept of fades, Fading ROCE and growth, Choosing an

appropriate fade period Impact of fades on DCF valuation

UNIT 7: M&A VALUATION 8 Hrs.

Mergers and Acquisitions, The drivers of M&A, Horizontal and vertical integration Price Strategy,

Valuing the target, As a standalone Valuing synergy, Estimating the price premium, Financing the

acquisition, Using shares or cash, EPS accretion and dilution: does it reflect value added?, Modelling

acquisitions, Accounting issues New developments Calculating Goodwill, Proforma balance sheet

Merging income statements

UNIT 8: REPORT WRITING 3 Hrs.

Reporting Types and Techniques, Reporting Styles, Types of Reports, Report Writing Techniques ,

Building report elements, Analysis and Investment Case, Analyst opinion & summary, Integrating various

report elements , Buy/Sell Recommendation , Presenting Investment Case , Finalizing the report

P a g e | 30

MFIN236 - Fixed Income Securities



COURSE DESCRIPTION: Quantitative models play a key role in the valuation and risk management of

these securities. The technical requirements for this course is limited to basic calculus and statistics. The

class is by its nature is quantitative and will require hands on class work in many of the classes. Familiarity

with Microsoft Excel will suffice. Use of Bloomberg will be made throughout the course for data analytics

in the Fixed Income market.

UNIT 1: INTRODUCTION 4 Hrs.

Market segments, Participants in the Debt Market, Secondary Markets for debt instruments, Government

Securities –Bonds, Government Securities-T Bills, State Government Bonds, Call Money Markets,

Corporate Debt-Bonds, Commercial Paper, Repos

UNIT 2: GOVERNMENT SECURITIES 8 Hrs.

Central Government Securities: Bonds - Introduction, Developments Expected, G-Secs: Trends in

Volumes, Tenor and Yields, Primary Issuance Process, Participants in Government Bond Markets,

Constituent SGL Accounts, Primary Dealers, Satellite Dealers, Secondary Markets for Government Bonds,

Settlement of Trades in G-Secs, Clearing Corporation, Negotiated Dealing System, Liquidity Adjustment

Facility (LAF). Central Government Securities: Treasury Bill - Issuance Process, Cut-Off Yields, Investors

in T-Bills, Secondary Market Activity in T-bills. State Government Bonds - Gross Fiscal Deficit of State

Governments and its financing, Volume and Coupon rates on State Government Bonds, Ownership Pattern

of State Government Bonds, and State Government Guaranteed Bonds.

UNIT 3: BOND MARKET INDICES TRADING MECHANISM 6 Hrs.

I-Bex : Sovereign Bond Index, NSE – MIBOR - Trading Mechanism in the NSE-WDM - Description of

the NSE WDM, Order Types and Conditions, Market Phases and Starting Up, Trading Mechanism, Order

Entry in Negotiated Trades Market, Order Validation, Order Matching, Trade Management, Reports,

Settlement, Rates of Brokerage - 1.

UNIT 4: BOND MATHEMATICS 8 Hrs.

Malkiel’s Theorems for Bonds, Time Path of a Bond, Valuing a Bond at any point on the time scale,

Accrued Interest, day count conventions, Current YTM, Bond Equivalent Yield, Realised Yield, Yield

Price relationship, Yield Curve Analysis - Par Value, Zero, Spot Curve - Term Structure of Interest Rates

- Constructing Yield Curve Bootstrapping - Yield curve and yield curve theories – basic Econometric

forecasting of the yield curve

P a g e | 31

UNIT 5: DURATION & CONVEXITY 8 Hrs.

Introduction and Definition of Duration, Proof of Duration, Duration on Coupon Paying Bond, Modified

Duration, Understanding the Duration gap, Computing Portfolio Duration, Understanding Limitations of

Duration, Malkiel’s Theorems for Duration, Understanding the role of Convexity, Understanding the

calculation of convexity

UNIT 6: BOND VALUATION 5 Hrs.

Valuation of a plain vanilla bond, Valuation and analysis of callable and puttable bonds, Valuation and

analysis of Convertible Bonds

Case: Washington Mutuals Covered Bonds, HBS-9-209-093

UNIT 7: TERM STRUCTURE 6 Hrs.

Introduction to term structure Theories of Term Structure, Pure Expectation Liquidity Preference Preferred

Habitat, Introduction to various methods to calculate term structure, Understanding the Boot Strapping

method for calculating Term Structure, Understanding forward rates

UNIT 8: MANAGING BOND PORTFOLIOS 4 Hrs.

Understanding the basic principles for Bond Portfolio management, Understanding the various techniques

involved in Bond Portfolio Management under various term structure scenarios Barbell Bullet

Case: New York Life Insurance Company: Adjusting the Investment Portfolio to Market Conditions;

NACRA- NAO0213

UNIT 9: ASSET BACKED SECURITIES 7 Hrs.

The Securitisation process, Residential Mortgage Loans, Residential Mortgage backed securities,

Commercial mortgage backed securities, Reading: Note on Pricing of Mortgage Backed Securities,

HBS:9-287-060

UNIT 10: REGULATORY AND PROCEDURAL ASPECTS 4 Hrs.

Public Debt Act, 1944, SEBI (Guidelines for Disclosure and Investor Protection), 2000, Government

Securities Market Act,2006, Market Practices and Procedures

P a g e | 32

MFIN237 - Advanced Financial Modelling Using Excel/Vba



UNIT 1: BASICS OF MACROS 8 Hrs.

Creating Modules - Writing Subroutines - Running a macro code - Option Explicit - Defining and using

Variables - Usefulness of MsgBox and InputBox - Workbook and Worksheet – Objects - Range and Cells

Objects - Using Arrays - Working with Chart Objects - Inserting Comments - Using above concepts to

build simple financial applications

Control Structures for Building Financial Applications: For Loops, For Each Loops, Do – Until Loops, Do

– While Loops, If – then constructs and its variants, Select Case Constructs - Building financial

applications using above concepts.

Debugging Techniques: Creating Breakpoints - Stepwise Execution - Debug. Print -Error Handling

UNIT 2: WRITING USER DEFINED FUNCTIONS 6 Hrs.

Writing user-defined Functions (UDF) for building financial pricing libraries - Creating UDF for building

financial libraries.

UNIT 3: APPLICATION BUILDING USING MACROS 6 Hrs.

Solver & Optimization Techniques, Sensitivity Analysis, Goal Seek, Examples from various finance and

banking domains on applications of above principles.

Caselets from Financial Markets and Banking: Using data validation rules to create financial models, Using

multi-level data validation and linkages in a financial model, How to effectively use data validation

techniques.

UNIT 4: DASHBOARDS 10 Hrs.

Functions And Data Tools For Dashboarding - Named Ranges and Data Analysis using Tables - Pivot

Tables, Pivot Charts-Data Slicers and Timeline - Grouping/Ungrouping in Excel - Data Validation

Techniques - Dependent Lists using Data Validation - Important Functions in Excel with Applications.

Lookups & Searches for Dashboards: Lookup, Offset and Match functions - Wild Card Searches, Case

Sensitive Searches - Dynamic Linking using Lookup, Offset and Match Functions - 2-Dimensional and 3-

Dimensional Lookups - Multi-conditional Lookups for Dashboards - Lookup nth occurrence on the list -

Reverse Lookups and Searches.

Dashboards For Business Analysis: Advanced Business Functionalities - Custom and Advanced Filters -

Dynamic and Flexible Functions for Dashboards - In-cell charting techniques for Dashboards - Advanced

Conditional Formatting and Visualization techniques for Dashboards - Advanced Charts, Dynamic Charts

and Combination Charts - Heat mapping, Indexing, Slicing for Business Dashboards - Building KPI

Dashboards and Reports - Examples of Application Building from Finance, Marketing and Sales, Project

Management, Human Resources - Case Study and Applied Dashboard Creation – In class Exercise.

christ (deemed to be university) pune lavasa campus … · 2020-04-20 · unit 9: applications of...

Documents