NATIIONAL STOCK

S
E XCHANG
GE OF IN
NDIA LIM
MITED
DEPART
TMENT : SBU-Educattion
Date : No
ovember 2011
Securities Market (A
Advanced)) Module - Course
C
outtline

INTR
RODUCTION
N TO CAPIT
TAL MARKE T
A.

B.

C.

D.
E.
F.
G.

Fundamen
ntal Role
Equity capital
bt capital
Deb
Prefference capittal
Capital Ma
arket Segments
Prim
mary market
Secondary mark
ket
Products / Instruments
erential Votin
ng Rights (DV
VR) Shares
Diffe
Glob
bal Depository Receipt (G
GDR) / Amerrican Depository Receiptss (ADR)
Con
nvertible Prefference Sharres
Deb
bentures / Bo
onds
Fore
eign Currenc
cy Convertibl e Bonds
Govvernment Sec
curities
Trea
asury Bills
Certtificate of De
eposit (CD)
Com
mmercial Pap
pers (CP)
Call Money / Notice Money / Term Mone
ey
po / reverse Repo
R
Rep
Institutions & Intermediaries
Indices
Capital Asse
ets Pricing Model
M
(CAPM
M)
Reforms in Indian Securrities Marketss

FUN
NDAMENTAL ANALYSIS
S OF EQUIT
TY
A. Purpose
Fundamental Analysis
sis
Technical Analys
alysis
B. Financial Sttatement Ana
Ratios commonly tracked byy companys Shareholderrs
s companys Margins
Ratios to assess
s companys Capital Structure
Ratios to assess
s companys Solvency
Ratios to assess
s companys Assets & Lia
abilities Efficiency
Ratios to assess
s company R
Return Gene
eration Efficie
ency
Ratios to assess
C. Sector-Speccific Ratios

MARY MAR
RKETS PROC
CESS
PRIM
A. Typical Fund
d Raising Sta
ages
B. IPO Processs
C. Why IPO?

MBERSHIP ON
O EXCHAN
NGES
MEM
A. Stock Broke
er

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ngePlaza,Ba
andraKurlaCoomplex,Ban
ndra(E),Mum
mbai4000051 Pag
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B.
C.
D.
E.
F.
G.
H.
I.
J.
K.
L.

Trading Members
Clearing Members
Membership Norms
Trading Membership Admission Procedure
Trading Membership Surrender Procedure
Trading Membership Suspension & Expulsion
Authorized Persons
Sub brokers
Broker Client Relationship
Investors Service Cell & Arbitration
Code of Advertisement

REGULATORY FRAMEWORK
A.
B.
C.
D.
E.

Securities Contracts (Regulation ) Act, 1956

Securities and Exchange Board of India Act, 1992
SEBI (Intermediaries ) Regulations, 2008
SEBI (Prohibition of Insider Trading ) Regulations 1992
SEBI (Prohibition of fraudulent and Unfair Trade Practices relating to securities market)
Regulations, 2003
F. The Depositories Act. 1996
G. Indian Contract Act, 1872
H. Income Tax Act,1961
I. Anti Money Laundering

INTRODUCTION TO DERIVATIVES
A.
B.
C.
D.
E.
F.

What is Derivatives?
Kinds of Derivatives Contracts
OTC Derivatives & Exchange Traded Derivatives
Participants
Continuous Compounding
Why Derivatives?

EQUITY DERIVATIVES
A. Contract Structures
Nature of Contract
Underlying
Contract Period
B. Futures
Terminology
Future & Options
Pay-off Matrix
Pricing of Options
Applications of Options

INTEREST RATE DERIVATIVES

A.
B.
C.
D.
E.
F.
G.
H.
I.
J.
K.
L.
M.
N.

Fixed & Floating Interest Rate

Debt Securities Valuation
Discounting
Price Risk
Duration & Modified Duration
Yield to Maturity
Interest Rate Futures Underlying Concepts
Interest Rate Futures on NSE
Hedging through Interest Rate Futures
Reducing portfolio Maturity through Interest Rate Futures
Speculation Through Interest Rate Futures
Calendar Spread Trading through Interest Rate Futures
Cash and Futures Arbitrage through Interest Rate Futures
Interest Rate Futures NSE Contract Specifications

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CURRENCY DERIVATIVES
A.
B.
C.
D.
E.
F.
G.
H.
I.
J.
K.

Introduction to Exchange Rate

Exchange Rate Policy
Foreign Currency Quotes
Tick Size
Spread
Forward / Future Rates
Hedging through Currency Futures
Speculation through Currency Futures
Contract Specification
Membership
Participation

DERIVATIVES REGULATORY FRAMEWORK

DERIVATIVES ACCOUNTING
A. Accounting for Futures
B. Accounting For Options

DERIVATIVES TAXATION
A. Taxation of Profit / Loss on derivatives transactions in securities
B. Securities Transaction Tax on derivatives transactions

INTRODUCTION TO MUTUAL FUNDS

A. Role
B. Scheme Types
Nature of Investments
Investments Style
Structure of Scheme
Geography
Other Funds
C. Options
Dividend Payout Option
Growth Option
Dividend Re-Investment Option

MUTUAL FUNDS STRUCTURE & OPERATIONS

A.
B.
C.
D.
E.

Mutual Funds Structures

Mutual Fund Operations
Mutual Fund Distribution Channels
Distribution Commission
New Fund Offer

MUTUAL FUNDS INVESTORS TRANSACTIONS

A.
B.
C.
D.

Who can invest?

Who cannot invest?
Know your Customer (KYC) Requirements
Investors Transactions ( Normal Physical Mode)
Acquisition of Units by Investors from the schemes
Sale of Units by Investor to scheme
Secondary Market Transactions in Units by Investor
Redemption of Units on closure of scheme
Additional Purchase by Investor
Switch by Investor
Systematic Investment Plan
Systematic Withdrawal Plan

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 Systematic Transfer Plan

E. Investor Transactions (Through The Internet)
F. Investor Transactions (NSE MFSS Channel)

MUTUAL FUNDS EXPENSES, NAV & LOAD

A.
B.
C.
D.
E.

Expenses
Net Assets & NAV
Valuation
Load
Cut-off Timing

MF EVALUATION RETURN & RISK METRICS

A. Measuring Returns

Point to Point Returns/Simple Returns

Annualized Returns

Compounded Returns

Compounded Annual Growth Rate (CAGR)

B. SEBIs Disclosure Norms on Returns
C. Absolute and Relative Returns
D. Measuring Risk

Standard Deviation

Variance

Beta

Weighted Average Maturity

Modified Duration
E. Risk Adjusted Returns

Sharpes Ratio

Treynor Ratio

Alpha
F. Applying the metrics

MF EVALUATION-QUALITATIVE APPROACHES
A. Generic risk of mutual fund scheme categories
B. Other evaluative Factors affecting mutual fund schemes

MUTUAL FUNDS TAXATION

A. Securities Transaction Tax (STT)
B. Capital Gains

Equity-Oriented Schemes

Debt-Oriented Schemes
C. Additional tax on income Distributed
D. Tax Deducted at Source (TDS)

MUTUAL FUND INFORMATION SOURCES

A.
B.
C.
D.
E.

SID, SAI & KIM

Fact Sheets
Fund account statements
Annual Report and Portfolio Statements
Other sources of information

MUTUAL FUNDS INVESTOR PROTECTION

A. Structural Protection
B. Time-Standards
C. Other legal considerations for investors

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