UNIT I

Concept of financial system: Formal and informal financial systems, Functions of financial

system, Nature and Role of financial institutions and financial markets, financial system and

the economy.

UNIT II

Money Market: Emerging Structure of Indian Money Market; Instruments of Money

Market; Money Mutual Funds. Capital Market: Concept, Structure and Functions of Capital

Market; Primary Market- Instruments of Issue and Methods of Flotation; Secondary Market

— Concept, Market Players, Trading System and Settlement.

UNIT III

Credit Rating: Meaning, Functions, Importance. Derivatives: Basic Introduction. Financial

Products: Leasing, Hire Purchase, Factoring and Forfeiting.

UNIT IV

Institutional Structure: Commercial and non-commercial Banks, Investment Institutions

—UTI and other Mutual Funds; Insurance Organization- LIC, Scope and Functions,

Objectives of SEBI. And FMC.