FINANCE

CODES SUBJECT TITLE INTERNAL MARKS

EXTERNALMARKS

CREDITUNITS

Lecture Tutorial Practical

MBT 503 Security Analysis and Investment Management

40 60 4 3 2 0

MBT 504 Management of Financial Institutions 40 60 4 4 0 0MBT 505 Corporate Finance 40 60 4 4 0 0MBT 523 Strategic Financial Management 40 60 4 4 0 0MBT 524 International Finance 40 60 4 4 0 0MBT 525 Portfolio Management 40 60 4 4 0 0

MBT 503 SECURITY ANALYSIS AND INVESTMENT MANAGEMENT

Maximum Marks: 100 External Marks: 60Internal Marks: 40Credit Units 4

L T P3 2 0

Objectives:  Primarily the syllabus is meant to develop the knowledge and understanding of securities market among the students so that they could know how to invest and work as portfolio or fund managers. It also helps to sensitize them about the financial institutions and markets besides guiding them how to stay away from losses.

UNIT-115 Hours

Investment: Introduction to investment and securities, investment objectives, investment alternatives government securities real estate investment, investment, investment instruments of the money market

(5 hrs)Operations of Indian Stock Market: New issue market, secondary market

(5 hrs) Stock Markets: Listing of securities, BSE, NSE, OTCEI and NSDL, stock market indices, securities and exchange board of India

(5 hrs)

UNIT-218 Hours

Investment Practices: Return and risk, cost of investing in securities, mechanics of investing in markets and brokers, investment companies, objectives of security analysis, valuation theories of fixed and variable income securities

UNIT-315 Hours

Fundamental Analysis: Economic analysis, industry analysis, financial analysis (5 hrs)

Technical Analysis: Assumptions, history of technical analysis, efficient market theory recent developments in the Indian stock market

(10 hrs)

Total Hours: 48Hrs

Recommended Textbooks:

1. Pandian, Security analysis & portfolio management. Vikas, New Delhi2. Reilly/Brown, Security Analysis and Investment Management, Cengage Learning,

New Delhi.3. Raman, Investment: principles & techniques, VIkas, New Delhi4. Fischer, Donald E & Jordan, Ronald J. Security analysis & portfolio management, PHI,

New Delhi5. Fuller, Russell J & Farrell, James L. Modern investment & security analysis. New

York, McGraw Hill.6. Sharpe, William F. etc. Investment. New Delhi, PHI, 19977. Alexander, Jordan J & Bailey, Jeffrey V. Investment analysis & portfolio management,

Dryden Press, Thomson Learning, Bombay8. Machiraju, H.R. Indian Financial System, Vikas, New Delhi

NOTE FOR THE PAPER SETTER

The syllabus has been divided into three units. Paper setter will set 3 questions from each unit

and 1 compulsory question spread over the whole syllabus consisting of 5 short answer

questions. Compulsory question will be placed at number one. Candidate shall be required to

attempt 6 questions in all including compulsory question and selecting not more than 2

questions from each unit. All questions carry equal marks.

MBT 504 MANAGEMENT OF FINANCIAL INSTITUTIONS

Maximum Marks: 100 External Marks: 60 Internal Marks: 40Credit Units 4

L T P4 0 0

Objectives: After completing this course, the students will have a sound knowledge of theoretical and practical aspects in the area of financial institutions. It will help them to have a thorough understanding of all other areas of banking and financial institutions.

UNIT-1

20 HoursFinancial Institutions: Definition, types, organizational set up of financial institutions, role of financial institutions in economic development, banks and its types

(10 hrs)Development Banks in India: Types of development banks, functions of development banks, growth of development banks, structure and working of development banks

(10hrs)

UNIT-222 Hours

Reserve Bank of India and its Functions: Meaning and definition, organization set up of RBI, management of RBI, role and functions of RBI, credit control

(11 hrs)Mutual Funds: Evaluation, SEBI regulations and different types of schemes, deposit insurance, concept and working of deposit insurance, introduction to DICGC

(11 hrs)UNIT-3

22 HoursCommercial Banks and its Working: Evolution, management and organizational set up of commercial banks, assets liability management, theories of liquidity management, management of primary and secondary reserves, management of loans

(22 hrs)

Total Hours: 64Hrs.

Recommended Textbooks:

1. R. M. Srivastva, Management of financial Institution.2. Madura, Finical Institutions and Markets, Cengage Learning, New Delhi.3. Bansal & Bansal, Management of Banking & Financial Institutions.4. Madhu Vij, Management of Financial Institutions in India.5. R.N. Agawam, Financial Liberalization in India.6. Maharaja, Indian Financial System.7. LM. Bhole, Financial Markets & Institution.

NOTE FOR THE PAPER SETTER

The syllabus has been divided into three units. Paper setter will set 3 questions from each unit

and 1 compulsory question spread over the whole syllabus consisting of 5 short answer

questions. Compulsory question will be placed at number one. Candidate shall be required to

attempt 6 questions in all including compulsory question and selecting not more than 2

questions from each unit. All questions carry equal marks.

MBT 505 CORPORATE FINANCE

Maximum Marks: 100 External Marks: 60Internal Marks: 40Credit units: 4

L T P4 0 0

Objectives: Main objective of this course is to equip the students with the knowledge related to principles and approaches of corporate finance. It will enable them to solve inherent problems associated with corporate finance. Also, it will help the students to know how to create value to the shareholders.

UNIT-1 20 Hours

Corporate Finance: Meaning, nature, objectives, time value of money, three major decisions in corporate finance, risk and return analysis, CAMP model, black scholes model

(10 hrs)Financial Analysis, Profit Planning and Control: Financial statement analysis, cash flow statement

(10 hrs)UNIT-2

22 HoursLong Term Investment Decisions: Capital budgeting, concept and measurement of cost of capital, analysis of risk and uncertainty

(8 hrs)Current Assets Management: Working capital management, receivable management, inventory management, working capital financing

(8 hrs)Financing Decision: Leverage, capital structure, designing capital structure, long term financing, long term sources, short term sources, hybrid financing, venture financing, dividend decision, dividend and valuation, determinants of dividend policy

(6hrs)

UNIT-322 Hours

Risk Management: Option valuation, derivatives(11 hrs)

International Finance: International financial management, foreign exchange exposure and risk management

(11 hrs)

Total Hours: 64hrs.

Recommended Textbooks

1. Richard A Brealey, Stewart C myers, Franklin Allen, Pitabas Mohanty., Principles of corporate finance, Mc Graw Hill.

2. Weaver, Corporate Finance, Cengage Learning, New Delhi.3. M Y Khan, P K Jain. Financial Management,Tata Mc Graw Hill.4. Derivatives John C. Hull ., Options, Futures and Other, Prentice Hall 5. B L Steyn., Analysis, Valuations and Restructuring

NOTE FOR THE PAPER SETTER

The syllabus has been divided into three units. Paper setter will set 3 questions from each unit

and 1 compulsory question spread over the whole syllabus consisting of 5 short answer

questions. Compulsory question will be placed at number one. Candidate shall be required to

attempt 6 questions in all including compulsory question and selecting not more than 2

questions from each unit. All questions carry equal marks.

MBT 523 STRATEGIC FINANCIAL MANAGEMENT

Maximum Marks: 100 External Marks: 60 Internal Marks: 40Credit Units 4

Objective: The objective of this course is to acquaint the students of management with the basic knowledge of strategic issues in financial management. The course also highlights basic techniques used for strategic planning and the emerging issues of corporate restructuring, mergers and acquisition decisions.

UNIT–120 Hours

Conceptual Framework: Meaning of SFM, reasons for managing business financially strategy and strategist, 9-s model for SFM

(6 hrs)Financial Policy and Strategic Planning: Components of financial strategy, objectives and goals

(6 hrs)Strategic Planning Process: Capital asset pricing model, factor models and arbitrage pricing theory

(8 hrs)UNIT–2

22 HoursInvestments Decisions Under Risk and Uncertainty: Techniques of investment decision-risk adjusted discount rate, certainty equivalent factor, statistical method, sensitivity analysis and simulation method, financial analysis and planning, financial models

(11 hrs)Financial architecture, corporate valuation and value based management

(11 hrs)UNIT–3

22 HoursCorporate Restructuring: Financial restructuring and distress restructuring, mergers and acquisitions demerger and reverse merger, need for financial restructuring

(9 hrs)Restructuring of Sick Companies and Ethical Aspects: Ethical dilemma faced by financial managers, need for corporate social responsibility

(9 hrs)

L T P4 0 0

Corporate Governance: Recommendations of Kumar Mangalam Birla Committee and recommendations of Narayanan Murthi Committee.

(4 hrs)Total Hours: 64hrs

Recommended Textbooks: 1. Allen, D: An Introduction to Strategic Financial Management, CIMA/Kogan Page,

London.2. Chandra, Prasanna: Financial Management, Tata McGraw Hill, Delhi. 3. Hampton, Jone: Financial Decision Making, PHI, New Delhi. 4. Brigham, Finical Management, Cengage Learning, New Delhi.5. Grinblatt, Mark and Titman, Sheridan: Financial Markets and Corporate Strategy,

Tata McGraw Hill. Foster, George: Financial Statement Analysis, Pearson Education.

NOTE FOR THE PAPER SETTER

The syllabus has been divided into three units. Paper setter will set 3 questions from each unit and 1 compulsory question spread over the whole syllabus consisting of 5 short answer questions. Compulsory question will be placed at number one. Candidate shall be required to attempt 6 questions in all including compulsory question and selecting not more than 2 questions from each unit. All questions carry equal marks.

MBT 524 INTERNATIONAL FINANCE

Maximum Marks: 100 External Marks: 60 Internal Marks: 40 Credit Unit: 4

L T P4 0 0

Objective: After completing the course, students will have a sound knowledge of the concepts and theories in the area of International Finance. This will help them to attain a comprehensive understanding of diverse areas of International Finance.

UNIT-1 20 Hours

Internationalization of Financial Function: International financial management, an overview, objectives of international firm and impact of risk, financial function in Multinational Corporation

(5 hrs)Foreign Exchange Risk: Foreign exchange market, foreign exchange risk and exposure, exposure information system

(5 hrs) Foreign Exchange Strategies and Techniques: Strategies for exposure management and techniques for foreign exchange rate projections, devices for foreign exchange risk and exposure devices

(10 hrs)UNIT-2

22 HoursEmerging Issues in International Finance: Changes in international business and trade, its impact on international finance, recent changes in international money and capital markets, impact of international tax on international finance

(11 hrs)International Money Market Instruments and Institutions: GDRs, ADRs, IDRs, Euro Bonds, Repos, CPs, derivatives, floating rate instruments, loan syndication and Euro deposits, IMF, IBRD, development banks

(11 hrs)

UNIT-3 22 Hours

Financial Management of Multinational Firms: Foreign direct investment and cross-border acquisitions, international capital structure and the cost of capital, international capital budgeting

(11 hrs)

Overview of International Finance: Multinational working capital policy and cash management, exports and imports, international tax environment, corporate governance around the world

(11 hrs)Total Hours: 64Hrs

Recommended Textbooks:

1. Apte, P.G., International Financial Management, Tata McGraw Hill Publishing Company Ltd.

2. Bekaert, G. and Hodrick, R.J., International Financial Management, Prentice Hall.3. Eiteman, D.K., Stonehill, A.I. and Moffett, M.H., Multinational Business Finance,

Pearson Education. 4. Clark, International Financial Management, Cengage Learning, New Delhi.5. Eun, C. and Resnick, B., International Financial Management, McGraw-Hill/Irwin.6. Madura, J., International Corporate Finance, Thomson South-Western. 7. Shapiro, A.C., Multinational Financial Management, John Wiley & Sons, Inc.

NOTE FOR THE PAPER SETTER

The syllabus has been divided into three units. Paper setter will set 3 questions from each unit and 1 compulsory question spread over the whole syllabus consisting of 5 short answer questions. Compulsory question will be placed at number one. Candidate shall be required to attempt 6 questions in all including compulsory question and selecting not more than 2 questions from each unit. All questions carry equal marks.

MBT 525 PORTFOLIO MANAGEMENT

Maximum Marks: 100 External Marks: 60Internal Marks: 40Credit Unit: 4

Objective: After completing this course, students will have a meticulous understanding of the concepts and theories in the subject. Basically, the course intends to provide a broad overview of investment management, applications of finance theory to the issues faced by portfolio managers in particular and investors in general.

UNIT-1 20 Hours

Introduction to Portfolio Management: Merits of diversification, diversification and portfolio risk, measurement of portfolio return and risk, calculation of portfolio risk, optimal portfolio, process of portfolio management

(6 hrs)Portfolio Theories: Modern portfolio theory, asset allocation decision, Markowitz diversification model

(8 hrs)Capital Market Theory: Testing the capital asset pricing model, arbitrage pricing theory

(6 hrs)UNIT-2

22 HoursTesting the Efficient Frontier: Relationship between the leveraged and unleveraged portfolios, constructing the efficient frontier, Sharpe index model, determination of corner portfolio

(11 hrs)Portfolio Performance Evaluation: Sharpe, Trey nor and Jensen measure

(11 hrs)

UNIT-3 22 Hours

Portfolio Revision: Active and passive strategies and formula plans in portfolio revision

(8 hrs)Managed Portfolios and Performance Measurements: Classification of managed portfolios

(8 hrs)Mutual Funds: Types, performance evaluation of mutual funds, functions of asset management companies

L P T4 0 0

(6 hrs)

Total Hours: 64hrs

Recommended Textbooks:

1. Stephen Loft house, Jane Raybould: Investment Management, John Wiley & Sons Publications.

2. Frank J Fabozzi.: Investment Management, Prentice Hall - Gale 3. Amling Fredrick: Investment- An Introduction to Analysis and Management, Prentice

Hall India. 4. Donald E. Fischer and Ronald J. Jordan: Security Analysis and Portfolio Management,

Pearson Education. 5. William F. Sharpe, Gordon J. Alexander, Jeffrey W. Bailey: Investments, Prentice Hall

India. 6. Prasanna Chandra: Investment Analysis and Portfolio Management, Tata McGraw

Hill. 7. Francis Jack Clark: Management of Investment, McGraw Hill Pub. 8. V. K. Bhalla: Investment Management, Sultan Chand and Sons. 9. William F. Sharpe: Investments, Prentice Hall India.

NOTE FOR THE PAPER SETTER

The syllabus has been divided into three units. Paper setter will set 3 questions from each unit and 1 compulsory question spread over the whole syllabus consisting of 5 short answer questions. Compulsory question will be placed at number one. Candidate shall be required to attempt 6 questions in all including compulsory question and selecting not more than 2 questions from each unit. All questions carry equal marks.