Financial Market Operation


Ajitav Acharya


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Course Name : Financial Market Operation

Code(Credit) : CUBC2435

Course Objectives

To provide the student an understanding of the financial market, its different products and operations

Learning Outcomes

  • Describe the different components of a financial system and their role.
  • Explain the recent developments in the Indian financial system
  • Describe the instruments, participants and operation of the money market
  • Describe the methods of issuing shares and role of intermediaries in the primary market
  • Describe the trading mechanism in the stock market
  • List the various speculators and describe the speculative activities
  • Describe various types of derivatives.

Course Syllabus

Unit 1:  Financial System

Meaning and significance; Role of finance in an economy, Components (instruments, markets, etc.); kinds of finance – Rudimentary finance, Direct and Indirect finance; Role of financial intermediaries, the structure of Indian Financial System

Unit 2:  Interest Rate Structure

Meaning – Gross and Net interest rate – their difference, Nominal and Real interest rate – their difference, Differential interest rate, Causes of variation of interest rate, relationship between interest rate and economic progress, Administered and Market determined interest rate. Recent changes in interest structure in India

Unit 3:  Money Market

Concept, Structure of Indian Money Market, Acceptance Houses, Discount Houses, Call money market, Recent trends of Indian money markets

Unit 4:  Capital Market

Concept, Security market, Primary & Secondary markets-Functions & Role, Functionaries of stock exchanges-Brokers, Sub- Brokers, Jobbers, Consultants, Institutional Investors & NRIs

Unit 5:  Derivative: Futures & Options, Trading, Clearing & Settlement
Unit 6:  Commodity: Clearing, Settlement & Risk Management of Commodity Trading
Unit 7:  Mutual Fund Operations: Introduction, Schemes of Mutual Fund, Return & Tax Relief, AMFI, NAV Calculation
Unit 8:  Financial Services

Merchant Banking-Functions & Roles, SEBI guidelines, Credit rating-concept & types, Functions & limitations, Profile of Indian Rating Agencies

Unit 9:  Investors’ Protection

Grievances concerning Stock Exchange dealings & their removal, Grievance Redressal Cell in Stock Exchanges, Role of The SEBI, Company Law Board, Judiciary


Books Recommended:


  1. Meir Kohn, Financial Institution and Market, Oxford University Press. New Delhi.
  2. Khan, M. Y., Indian Financial System-Theory and Practice, TMH, New Delhi.
  3. Bhole, L. M., Financial Markets and Institutions, TMH, New Delhi.
  4. Mukherjee, Ghosh and Roy, Indian Financial System and Financial Market Operations, Dey Book Concern, Kolkata

Session Plan

Session 1

Meaning & Significance of Financial System
Components (Instruments, Markets) of an Economy
Role of Financial Intermediaries
The Structure of Indian Financial System

Financial systemChapter4804

Session Plan

Session 2

Meaning & Significance of Financial System
Components (Instruments, Markets) of an Economy
Role of Financial Intermediaries
The Structure of Indian Financial System

Financial systemChapter4804

Session Plan

Session 3

Meaning – Gross and Net Interest Rate, Their Difference
Nominal and Real Interest Rate, Their Difference
Relationship between Interest Rate and Economic Progress
Administered and Market Determined Interest Rate, Recent changes in Interest Structure in India

Financial Market Final

Session Plan

Session 4

Concept of Money Market
Structure of Indian Money Market
Acceptance Houses, Discount Houses prevailed in Indian Money Market
Concept of Capital Market, Security Market
Primary and Secondary Market, Its functions and Role

Financial Market Final

Session Plan

Session 5

"Functionaries of Stock Exchanges
Broker, DP Etc."
Sub-Brokers, Jobbers,

Financial Market Final

Session Plan

Session 6

Meaning and Concept of Derivatives
Functions of Derivative Market
Types of Derivatives, Future and Options
Trading, Clearing and Settlement


Session Plan

Session 7

Concept of Commodity Market in context to Indian Economy
Commodity Exchange Houses in India
Clearing & Settlement Procedure
Risk Management of Commodity Trading


Session Plan

Session 8

Introduction, Schemes of Mutual Funds in India
Role of SEBI, Company Law Board (CLB), Judiciary


Case Studies

Case Studies

Our Main Teachers

Ajitav Acharya is working as a faculty at at at Centurion University of Technology and Management, Bhubaneswar. He is having more than 10 years of experience in academics and industry. He is currently pursuing his Ph.D. at Utkal University. He has completed his MBA (Finance and Marketing) from Siksha ‘O’ Anusandhan University, MCom and Bcom […]