2421 Stock Markets Operations

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<ul><li><p>8/4/2019 2421 Stock Markets Operations</p><p> 1/4</p><p>Lal Bahadur Shastri Institute of Management, DelhiTwo Year Full Time Post Graduate Programme in Management (Finance)</p><p>Trimester IV</p><p>Course Code: 2421 Course: Stock Market Operations</p><p>Academic Session: 2010-11 Instructor:Dr. Deepak Tandon</p><p>Learning Objectives Course Objectives: The course aims at giving an in-depththeoretical and practical understanding of Stock Market/Secondary Market working,</p><p>Depository systems /Developments in Stock Markets trading and settlement system. The</p><p>objectives can be summarized</p><p> To study the growth of the Indian Stock Markets vis a vis tools available for Risk</p><p>Management and investor protection in light of SEBI Guidelines</p><p> To study the Organization, functions of the stock Exchanges in India , enrollmentof the members</p><p> To study the market mechanism of Buying &amp; selling in an Online trading system</p><p> To be equipped with the Margin System,VaR and Mark to Market Concept .</p><p> To study the transparency and full disclosure in terms of structural changes in the</p><p>Capital Market</p><p> To study the functionary of Stock Exchanges , Depositories ( NSDL/CDSL),SHCIL</p><p> To have an overall view of the Secondary Market operations , Trading Clearingand Settlement, Rolling Settlement, Dematerialisation of Shares, Surveillance,Sensex and Other Indices, Futures and Options, Primary Markets, Book Building&amp; IPOs, Listing, Debt Market.</p><p>.</p><p>SESSION PLAN</p><p>1</p></li><li><p>8/4/2019 2421 Stock Markets Operations</p><p> 2/4</p><p>Module Session Topic</p><p>1. Introduction toStock Exchange/</p><p>Stock Markets in</p><p>India</p><p>1-3</p><p>1.1Organization of Stock Exchanges in India and the legalregulations ,</p><p>1.2 Features and functions of Stock Exchanges in India .How</p><p>SCAMS can be circumvented in Capital Market Operations1.3 BSE / NSE and OTCEI Framework and workings</p><p>2. Risk Managementin Stocks. Holding</p><p>period return. Stock</p><p>Exchange</p><p>Terminology</p><p>4-6</p><p>2.1 Risk Management in Stocks . Tradings in listed securities</p><p>2.2 Stock Market Glossary</p><p>Numericals</p><p>3. Capital Market</p><p>Regulators7-9</p><p>3.1 Repeal of CCI and shift to SEBI Act ,1992. Structural</p><p>changes in Capital Market .Critical appraisal of SEBI3.2. Depository system CDSL and NSDL</p><p>CASE:</p><p>4. Stock MarketIndices</p><p>10-13</p><p>4.1 Construction of Stock Market index (Sensex) and Nifty,Methodology and maintenance of SENSEX.</p><p>4.2 About NSE Nifty, Nifty Jr, CNX 1004.3 Introduction to Foreign Stock Exchanges and Indices </p><p> NASDAQ ( National Association of Securities Dealers</p><p>Automated Quotation),NYSE (New York Stock Exchange )</p><p>and LSE ( London Stock Exchange ). Concept of Order vsQuote Driven Market. Role of SEC ( Securities Exchange</p><p>Commission)</p><p>CASELETS &amp; CASE Stock Market Index Calculation inTelecom Industry using Market Capitalisation Weighted</p><p>Methodology</p><p>NUMERICALS</p><p>5. The brokeragebusiness and share</p><p>trading through</p><p>Broker, Selection of</p><p>Broker 14-15</p><p>5.1 Trading through Member broker Concepts . Placing ofan order , execution of the order</p><p>5.2 Trading Clearing and Settlement, Rolling Settlement,BOLT vs NEAT5.3 Dematerialisation of Shares- Concepts ofdematerialization and rematerialisation ,5.3 Functional Specialisation of the Brokers</p><p>5.4 Settlement in stock trading and Intraday Trading</p><p>DEMO OF A TRADING IN STOCKS (1 Session)</p><p>6. Margin System&amp;</p><p>Recent Developments</p><p>16-17</p><p>6.1 Margin Trading in Stocks , Initial / Exposure Margin /MTM</p><p>6.2 Derivative Trading in India - F &amp; O Trading on NSE</p><p>( Futures &amp; Options). Short vs Long positions CurrencyDerivatives ( NCDEX).</p><p>6.3 Option premium in NIFTY (Application of Black and</p><p>Scholes Model)</p><p>2</p></li><li><p>8/4/2019 2421 Stock Markets Operations</p><p> 3/4</p><p>7. Primary Market</p><p>Operations IPO/Rights / FPO</p><p>187.1 Primary Markets, Book Building &amp; IPOs, Listing, DebtMarket,</p><p>8 Revision</p><p>19-20</p><p>Multiple choice Class Test // Caselet on IPO financing /</p><p>Mock Trading</p><p>Suggested Readings</p><p>Compulsory:</p><p> Brealey and Myers and Pitabas Mohanty,Principles of Corporate Finance 8h</p><p>Edition (Tata Mc Graw Hill)</p><p>Reference: Machi Raju, H.R: Merchant Banking; Wiley Eastern Ltd.; New Delhi.</p><p> Machi Raju, H.R: Working of Stock Exchanges in India; Wiley Eastern Ltd.</p><p>New Delhi.</p><p> Dalton, John M.: How the Stock Market Works, Prentice Hall, New Delhi</p><p> Dr JN Dhankar (2009):The Indian Capital Market Operations ;skylark</p><p>Publications New Delhi</p><p>Websites</p><p> www.bseindia.com</p><p> www.nseindia.com www.otcei.net</p><p> www.capitalmarket.com</p><p> www.indiabulls.com., www.angelbroking.com,www.sharekhan.com</p><p> www.indiainfoline.com</p><p> money.rediff.com/companies</p><p> www.smcindiaonline.com/smcsite/tradedemo.asp</p><p>Evaluation Parameters</p><p>Class Tests (2) 10 marks</p><p>Attendance 10 marksIndividual assignments 10 marks</p><p>Group assignments and presentation 10 marks</p><p>End term examination 60 marks</p><p>3</p>http://www.bseindia.com/http://www.bseindia.com/http://www.bseindia.com/http://www.nseindia.com/http://www.nseindia.com/http://www.nseindia.com/http://www.otcei.net/http://www.otcei.net/http://www.otcei.net/http://www.capitalmarket.com/http://www.capitalmarket.com/http://www.capitalmarket.com/http://www.indiainfoline.com/http://www.indiainfoline.com/http://www.indiainfoline.com/http://www.smcindiaonline.com/smcsite/tradedemo.asphttp://www.smcindiaonline.com/smcsite/tradedemo.asphttp://www.smcindiaonline.com/smcsite/tradedemo.asphttp://www.bseindia.com/http://www.nseindia.com/http://www.otcei.net/http://www.capitalmarket.com/http://www.indiainfoline.com/http://www.smcindiaonline.com/smcsite/tradedemo.asp</li><li><p>8/4/2019 2421 Stock Markets Operations</p><p> 4/4</p><p>Pedagogy</p><p>The teaching methodology is a judicious blend of lectures, Guest lecture and real life</p><p>situation analysis, case discussion and presentation by students of their project work andfield study</p><p>_______________________________________________________________________</p><p>4</p></li></ul>