Course Title: Financial Institutions and Markets

Course Code: BBA50112

Semester: V
Credit Hours: 3 (3 Hours/Week x 15 Weeks = 45 Hours)
Course Type: Core
Program: BBA (Bachelor of Business Administration)

📘 Course Description
This course provides an in-depth understanding of the structure and functioning of financial institutions and
markets, with a focus on the Indian financial system. Students will explore various financial intermediaries,
capital and money markets, mutual funds, merchant banking, securitization, and credit rating. Emphasis is
placed on regulatory frameworks, reforms since liberalization, and the evolving role of financial institutions
in a dynamic economic environment.

🧱 Pre-requisites
 Basic understanding of microeconomics and macroeconomics
 Familiarity with business environment and financial terminology

🎯 Course Learning Outcomes (CLOs)

By the end of this course, students will be able to:

1. CLO1: Describe the structure and components of the Indian financial system.
2. CLO2: Explain the functioning and regulation of financial markets in India.
3. CLO3: Analyze the roles of mutual funds and merchant banks in capital market development.
4. CLO4: Interpret the processes and implications of securitization and credit rating.
5. CLO5: Evaluate the changing roles of financial institutions in the post-liberalization era.

🧩 Detailed Module Breakdown

📘 Module 1: Financial System (9 Hours)

CLO Alignment: CLO1

Topics Covered:

 Introduction to Financial System: Meaning, objectives, and functions.

 Structure of Indian Financial Intermediaries: Banks, NBFCs, cooperative institutions, etc.
 Key Regulatory Bodies:
o Reserve Bank of India (RBI) – monetary authority and regulator.
o Securities and Exchange Board of India (SEBI) – capital market regulator.
o Insurance Regulatory and Development Authority (IRDA) – insurance sector oversight.
 Financial Sector Reforms: Liberalization since 1990-91 and its implications.

Learning Goals:

 Understand foundational financial system components.

 Identify key regulators and their roles.
 Analyze the impact of post-1991 reforms on financial intermediation.

📗 Module 2: Financial Markets (9 Hours)

CLO Alignment: CLO2

Topics Covered:

 Money Market:
o Functions
o Instruments (e.g., Treasury Bills, CPs, CDs)
 Capital Market:
o Components: Primary & Secondary markets
o Instruments: Equity, Debt, Derivatives
 Primary Market:
o IPO, FPO, Rights issue, Private placement
 Secondary Market:
o Stock exchange functions
o Trading mechanisms and platforms (NSE, BSE)
 SEBI’s Role in Regulation:
o Investor protection
o Market integrity

Learning Goals:

 Differentiate money and capital markets.

 Explain capital market instruments and processes.
 Understand SEBI’s regulatory framework.

📙 Module 3: Mutual Funds and Merchant Banking (9 Hours)

CLO Alignment: CLO3
Topics Covered:

 Mutual Funds:
o Concept and structure
o Types: Open-ended, Close-ended, Equity, Debt, Hybrid
o Role in mobilizing savings and market stability
 Merchant Banking:
o Definition and historical evolution
o Functions: IPO management, underwriting, advisory
o Government policies and future prospects

Learning Goals:

 Understand mutual fund mechanisms.

 Analyze merchant banking roles and relevance.
 Assess the contribution of these institutions to capital markets.

📕 Module 4: Securitization and Credit Rating Agencies (9 Hours)

CLO Alignment: CLO4

Topics Covered:

 Securitization:
o Concept, need, and features
o Stakeholders: Originators, SPVs, Investors, Rating agencies
o Process flow: Asset pool → SPV → Security issuance
 Credit Rating Agencies:
o Overview and functions
o CRISIL, ICRA, CARE: Methodologies and ratings
o Benefits of credit ratings to investors and issuers

Learning Goals:

 Understand securitization as a risk-transfer mechanism.

 Interpret credit rating criteria and processes.
 Evaluate the impact of credit rating on investment decisions.

📒 Module 5: Changing Role of Financial Institutions (9 Hours)

CLO Alignment: CLO5
Topics Covered:

 Banking Sector Reforms: NPAs, Basel norms, recapitalization

 Financial Institutions’ Roles:
o Financial: Loans, investments, and risk mitigation
o Promotional: Infrastructure, entrepreneurship, MSME support
 Universal Banking:
o Concept and evolution
o Advantages and regulatory concerns

Learning Goals:

 Evaluate institutional transformation post-liberalization.

 Understand the shift toward universal banking.
 Assess institutional contribution to national development.

📝 Learning Objectives & Outcomes Alignment Table

CLO
Module Topics Contribution to CLO
Alignment
Establishes foundational knowledge of financial
1 Financial System & Regulators CLO1
institutions
Builds practical understanding of capital and
2 Financial Markets CLO2
money markets
Mutual Funds & Merchant Enhances applied knowledge of capital market
3 CLO3
Banking players
Introduces modern financial instruments and
4 Securitization & Credit Rating CLO4
ratings
5 Financial Institutions’ Role CLO5 Develops critical analysis of institutional change

🏫 Teaching & Assessment Methods

Module Teaching Methods Assessment Tools
1 Lectures, Case Studies Quiz, Assignment
2 Demonstrations (Stock Market Simulation), Group Discussion Mid-term Exam, Presentation
3 Industry Reports, Video Tutorials Assignment, Group Presentation
4 Analytical Exercises, Case Studies (CRISIL/ICRA) Mini Case Analysis
5 Seminar, Research Article Review Final Exam, Viva

Additional Notes:

 Mid-Term Exam: Week 8

 Final Exam: Week 15
 Assignments Submission: End of Weeks 4, 9, and 12
 Presentations: Scheduled for Weeks 7 and 13

📚 Recommended Resources
📘 Textbooks

1. Bhole, L.M. & Mahakud, J. (2019). Financial Institutions and Markets. Tata McGraw-Hill.
2. Pathak, B.V. (2014). The Indian Financial System. Pearson Education.

📗 Reference Books

1. Khan, M.Y. (2018). Indian Financial System. McGraw-Hill.

2. Machiraju, H.R. (2010). Merchant Banking. New Age International Publishers.

🌐 Open Access & Online Platforms

 RBI: [Link]
 SEBI: [Link]
 Investopedia (for concept clarity): [Link]
 NPTEL Course: Indian Financial Markets – Available on [Link]
 YouTube Channels: Finology, CA Rachana Ranade (for beginner-friendly content)

📊 Visual Structure Sample

Example: Simplified Credit Rating Process

flowchart LR
A[Issuer] --> B[Credit Rating Agency]
B --> C[Financial Statement Analysis]
C --> D[Rating Committee]
D --> E[Assign Rating]
E --> F[Rating Publication]

📅 Course Timeline Overview

Week Module Topics Key Activities
1–2 Module 1 Financial System Intro Lecture, Quiz 1
3–4 Module 2 Financial Markets Stock Demo, Assignment
5–6 Module 3 Mutual Funds Group Presentation
7–8 Module 4 Securitization Midterm Exam, Case Study
9–10 Module 5 Financial Institutions Research Review
11–15 Revision Integrated Practice Final Review, Viva

📘 Course Summary: Financial Institutions and Markets

Course Code: BBA50112
Semester: V | Credits: 3 | Total Hours: 45

📝 1. Course Description

This course provides a comprehensive overview of the Indian financial system, focusing on its structure,
regulatory framework, and key institutions. Students will explore financial markets, mutual funds, merchant
banking, securitization, credit rating, and the evolving role of financial institutions in a liberalized economy.

🎯 2. Pre-requisites & Target Audience

 Pre-requisites: None
 Target Audience: Undergraduate BBA students, especially those pursuing finance, banking, or
capital markets.
 No prior knowledge of financial systems is required.

🎓 3. Course Outcomes (COs)

By the end of this course, students will be able to:

 CO1: Describe the structure and functions of the Indian financial system and its regulators.
 CO2: Analyze various financial markets and instruments, including regulatory practices.
 CO3: Understand mutual funds and merchant banking operations and their market impact.
 CO4: Explain securitization processes and the role of credit rating agencies.
 CO5: Evaluate reforms and the evolving role of financial institutions post-liberalization.

📊 4. Module-Wise Summary Table

Module Linked
Module Title Key Topics/Subtopics Hours
No. CO
Structure, regulators (RBI, SEBI, IRDA),
1 Financial System 9 CO1
reforms post-1991
Money & Capital markets, SEBI regulation,
2 Financial Markets 9 CO2
market instruments
Mutual Funds & Merchant Types, roles, regulatory environment, merchant
3 9 CO3
Banking banking functions
Securitization & Credit Process, stakeholders, CRISIL/ICRA/CARE,
4 9 CO4
Rating Agencies credit rating benefits
Changing Role of Financial NPAs, Basel norms, universal banking,
5 9 CO5
Institutions developmental role

🔁 5. Visual Summary: CO–Module Mapping

Course Outcome (CO) Related Module(s)

CO1 Module 1
 Course Outcome (CO) Related Module(s)
CO2 Module 2
CO3 Module 3
CO4 Module 4
CO5 Module 5

📝 6. Assessment Overview (Suggested Format)

 Internal Assessment (30%):

o Quizzes, Assignments, Case Studies
 End Semester Exam (70%):
o Descriptive and application-based questions

📚 7. Recommended Resources

 Core Texts:
o Financial Markets and Institutions by L.M. Bhole
o Indian Financial System by M.Y. Khan
 Supplementary:
o RBI, SEBI, and IRDA official reports
o Business Standard, Economic Times (for current updates)