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SVKMS NMIMS

Mukesh Patel School of Technology Management & Engineering

MBA - (Tech) Trimester - XIV

Sub: Investment Banking- (Elective) Code :

Periods per week Lecture 2(1.5 Hours of each)Practical ---

Tutorial ---

Hours Marks

Evaluation system Theory

Examination

2 50

Term Work --- 50

Objectives:

T provide fundamental understanding of the role of Investment Banks and how they

operate.

To provide framework for analysis of the various businesses of an Investment Bank.

To provide a framework of reference for future professionals in the Investment BankingIndustry.

Prerequisite:

Nil

Detailed Syllabus

Unit Topics Duration

(Hr)

1 Overview of the Investment Banking:

Meaning, Services/functions of investment bankingRegulatory and structure of investment banking

3

2 Money Markets

Structure and role of money markets in India and globally

New money market instruments - Call money, commercial paper,term money, notice money, treasury bills, gilt edged securities,

certificate of deposit, repos, BRDS, IBPS etc.

Derivatives (FRA, IRS, IRF, Swaption, CAPS, Floors and Collars)Regulatory authorities, guidelines and regulations for money

market

6

3 Capital Markets

Significance of Indian and Global capital markets

Capital markets v/s money markets,Market players investors and companies

Primary and secondary markets in India and abroad Current

developmentsProcedural aspects and Due diligence of prospectus or letter of

6

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offer

Pre-issue decision making and managementSEBI guidelines for public issues

Security laws / regulatory framework for governing Indian capital

markets

4 Debt and credit marketStructure and role of global bond market

Types of debt instruments

Bond pricing and yield - Clean and dirty price, YTM, modified

YTM, Yield to call, current yield, realized yield, horizon analysis,bond written, prices and their movements and bond theorems

Risks in fixed income securities, classical theory of interest yield

curve, yield spread, Z theoretical determinants of shape of yieldcurve, terms structure hypothesis, systematic and unsystematic

risk in bond

Concept of duration (Macaulay, Modified, Effective), durationwandering, duration swift, convexity interest rate risk, price

volatility and hedging risk, value at risks

Bond management strategy active, semi-active and passive

strategy, asset liability optimization strategy and maturitymatching bond swap

Credit derivatives-Concept, role and structure, types-CDS, TRS,

CSO, CLN, CDO

9

5 Pricing of various fund raising instrumentsNAV method, book-building, book-building through on-line IPO,

reverse book-building, eligibility to issue securities, fixed v/sbook-building process, ETF its varieties and guidelines

3

6 International Markets

Instruments, PlayersDebt instruments GDR, ADR, IDR, ECB, FCCB, Various types

of bonds, their characteristics, advantages and disadvantages

Procedure for issue of instruments and their costOff-shore fund arrangements, Loan syndication

3

TOTAL HRS. 30

Prescribed Text:

Financial Institutions and Markets L.M. Bhole Tata Megraw Hill

References :

Capital market management V.A. Avandhani Himalaya Publishing House

A Manual on Merchant banking J.C. Verma Bharat Law House

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SEBI Guidelines Nabhi Publications

Merchant banking Principles and Practices H.R. Machiraju

Financial markets and Services Garden and Natrajan HPH

Internet References

www.rbi.org.in

www.sebi.gov.in

Term Work: Case Studies / Assignments / Class Tests/ Project / Presentation / Role Play

http://www.rbi.org.in/http://www.sebi.gov.in/http://www.rbi.org.in/http://www.sebi.gov.in/