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8/17/2019 GFMP Presentation Customised
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©2010 BSE Institute Limited
Financial Markets
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Financial Market
• Primary Market - Primary market is the part ofcapital market here issue of ne securitiestakes place
• Secondary Market - ! market here in"estorspurchase securities or assets from otherin"estors
©2010 BSE Institute Limited
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©2010 BSE Institute Limited
What is Stock Exchange
• It is a platform here #uyers and sellers meet• It pro"ides a place to #uy and sell shares
• It acts as a #rid$e #eteen demanders of fundand suppliers of fund
• %anali&e sa"in$s into in"estments
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©2010 BSE Institute Limited
Participants
• 'o"t(• %ompanies
• Institutions
• )etail In"estors• Mutual *unds
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©2010 BSE Institute Limited
History of Stock Exchanges
• BSE first stock e+chan$e started on ,th
uly1./
• non as 3ati"e Shares and Stock Brokin$ !ssociation4
• Mem#ership fees as )s( 1
• 5here ere 61. mem#ers
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©2010 BSE Institute Limited
History of Stock Market
• *irst stock market started in ,th
uly 1./(• 3ati"e Share and Stock Brokers !ssociation
• 3o knon as BSE
• !t that time mem#ership fees )s( 1• 5here ere some 61. mem#ers
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©2010 BSE Institute Limited
Major reforms in capital Market
• 1,,1 LP' 7 Li#erali&ation8 Pri"ati&ation8'lo#ali&ation9
• 1,,2 *II 7*orei$n Institute In"estors9 erealloed in India
• 1,,6 Pri"ate Sector Mutual *unds erelaunched
• 1,,: *irst time SEBI came out ith 'uidelines
for M* 7Mutual *und9 industry
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©2010 BSE Institute Limited
Financial Markets
• *inancial Markets are the capital markets thatis stock market
• Stock market is knon as Barometer of theEconomy4
• Let us understand this statement
• %ompanies listed on stock market representcorporate india
• ;hen there profit rises or falls
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©2010 BSE Institute Limited
Stock market Barometer
• It is indication that net profit of companiesrises or falls
• 5his means that sales ha"e either $one up ordon
• 5his indicates demand has increased ordecreased in economy
• It has direct impact on stock market
• Stock market ultimately reflects the sentimentin the economy
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©2010 BSE Institute Limited
Financial Markets Classification
• %apital Market is market for lon$ term sourceof funds
• Market ha"in$ maturity of more than one year
• Instruments like
• Shares• Preference shares
• <e#entures
• Bonds
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©2010 BSE Institute Limited
Indian E!ities Market
• *rom 1,/, to 200,8 durin$ last 60 yearsSE3SE= has pro"ided Internal )ate of )eturnof 1/(2 >
• E?uities ha"e outperformed all other asset
classes in the past
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©2010 BSE Institute Limited
Projection of Sensex
• 200, 1/26
• 2010 2020.
• 2011 26:,@• 2012 2//.1
• 2016 62/6
• 201@ 6.1,2• 201 @@/.0
• 201: 20
• 201/ :1:2
• 201. /21.2• 201, .@:,6
• 2020 ,,262
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©2010 BSE Institute Limited
"ypes of Capital Flo#s
•5o main types of flo• FII $Foreign Instit!tional In%estors&
• F'I $Foreign 'irect In%estment&
• FII flo#s comes to stock market
• FII responsi(le for ne# highs and ne# lo#s
• In )**+, FII in%ested -s. +*,*** crores/)0)*1
• In )**2, FII sold -s. 3),*** crores/+14+
• In )**4, FII in%ested -s. 2),*** crores/02***
• In )*0*, Fii In%ested -s. 0,5*,*** crores/))***
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©2010 BSE Institute Limited
FII data
• %urrently 1/@: *II re$istered ith SEBI
• /0 > *II are from AS!
•So e cannot i$nore AS!
• I3 2010 *II ha"e in"ested record money since1,,2(
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©2010 BSE Institute Limited
FII inflo#s
• In 200, and 2010 to$ether *II ha"e in"ested)s(2(1 lakh crore
• 5his is 0 > of the total in"estment made from1,,2 to 2010(
• 5otal *II inflo since 1,,2 )s(@@6:2: %rores
• 2,> of *II inflo in 2010 since 1,,2
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©2010 BSE Institute Limited
FII registered and Sensex -et!rn
• 2006 1/ :6(/. >• 200@ :6/ ,(:>
• 200 .26 @0(/0>
•200: ,,6 @:(.2>• 200/ 121, @(0>
• 200. 1,@ -2(.:>
• 200, 1/0: /(6.>
• 2010 1/@/ 1@(:>
• 2011 -2@(:>
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©2010 BSE Institute Limited
F'I flo#s
• *<I has 6 main offerin$s• It adds ne employment opportunities
• It #rin$s ne technolo$ies
• It #rin$s ne mana$erial skills
• India attracts around 20 #illion *<I annually
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©2010 BSE Institute Limited
Economic Indicators
• '<P• Inflation
• Interest )ates
•E+chan$e )ates• *iscal <eficit
• IIP data
• Purchasers Mana$er Inde+
• Balance of Payment
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©2010 BSE Institute Limited
"rading %ol!mes drop 56 7
#orst in #orld $18080) Mint&
• %ountry !"$ <aily tradin$ >ch in last
• 7Million shares9 6 years
• AS 12@:. -2:(6
• %hina 1/621. @(/
• apan @.,02 66(2
• Ak 22:0 (2
• %anada 6.1 -1,(6
• *rance 1:0 11(1
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©2010 BSE Institute Limited
"rading %ol!mes drop 56 7 #orst
in #orld $18080) Mint&
• %ountry !"$ <aily tradin$ >ch in last• 7Million shares9 6 years
• 'ermany 6, 1:(.
• Bra&il 1161/ -20(2
• !ustralia 226 1@(
• Sit&erland / -1/(:
• India ./2 -6@(@
• South orea 66/ -2/(2
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©2010 BSE Institute Limited
Stock Markets -eg!latory
Frame#ork
• Self )e$ulatory Bodies• S%)! 7Securities %ontract )e$ulation
!ct91,: D S%) )ules 1,/
• !cti"ities super"ised #y Mo* 7Ministry of
*inance9
• Perception that ri$hts D Interests of In"estorsere i$nored(
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©2010 BSE Institute Limited
S E B I
• SEBI (Securities& Exchange Board of India)act passed in April 4,1992
F!nctions
• 5o protect the interest of in"estors
• 5o promote the de"elopment of D re$ulate
the securities market(
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©2010 BSE Institute Limited
-ole of SEBI
• )e$ulate the Business in SEs• )e$ister D )e$ulate intermediaries8 collecti"e
in"estment schemes 7incl( M*s9
• Promote D re$ulate S)Fs
• Prohi#it unfair D fraudulent trade practices
• Promote in"estor education D 5rainin$
• Prohi#it Insider tradin$
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©2010 BSE Institute Limited
Meas!res initiated (y SEBI
• %apital !de?uacy norms for Brokers• Intra day tradin$ limits
• 'ross E+posure limits
• Mar$ins
• Sur"eillance systems at SEs
• %ircuit *ilters
• Inspection of Stock E+chan$es
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©2010 BSE Institute Limited
9..contd
• %lient Broker relationship• G% 7no Gour %lient9
• )e$istration of Su# #rokers D #rokers
• Increasin$ tradin$ hours
• Introduction of <eri"ati"es 5radin$
• )ollin$ Settlements
• <emateriali&ation
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©2010 BSE Institute Limited
:ther -eg!latory Bodies
• Indian *inancial system $o"erned #y "ariousre$ulatory #odies
• )BI $ -eser%e Bank of India&
• !M*I $"he ;ssociation of M!t!al F!nds in India9
• I)<! $Ins!rance -eg!latory < 'e%elopment ;!thority&
• P*)<! $Pension F!nd -eg!latory and 'e%elopment ;!thority &
• *M% $"he For#ard Markets Commission&
• *S<% $Financial Stability and Development Council &
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©2010 BSE Institute Limited
-BI
• )eser"e Bank of India• !pe+ #ody for re$ulation of Bankin$ Sector
• '5L mer$ed ith FB% #y )BI for protection ofdepositors
• %!) 7%apital !de?uacy )atio9 of , >compulsory
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©2010 BSE Institute Limited
;MFI
• !M*I H !ssociation of Mutual *unds of India• !d"isory #ody for mutual funds
• )epresents M* industry #efore the'o"ernment
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©2010 BSE Institute Limited
I-';
• I)<! H Insurance )e$ulatory <e"elopment !uthority
• %ontrols the Insurance sector
• ALIP 7Anit Linked Insurance Plan9 issue taken
up #y I)<!
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©2010 BSE Institute Limited
F'SC
• *S<% H *inancial Sta#ility <e"elopment%ouncil
• %hairman is *inance Minister imself
• It sol"es the Inter-)e$ulatory 5ussle #eteen
the "arious #odies
• )ecently SEBI and I)<! had tussel
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©2010 BSE Institute Limited
Career :pport!nities
• )eli$are• India Infoline
• !n$el Brokin$
• ar"y %onsultants
• India #ulls
• )eliance Money
• !+is Bank
• SBI %ap
• <*% Securities
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©2010 BSE Institute Limited
Career Profiles
• *undamental !nalyst Hhat to #uy and sell• 5echnical !nalyst - hen to #uy and sell
• <eri"ati"es !nalyst H futures and options
• Fptions Strate$ist H #u$det8 corporate result
• <ealer
• Institutional 5radin$ ead
• Pri"ate E?uity analyst
• Mutual fund analyst
• )isk mana$ement e+ecuti"e
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©2010 BSE Institute Limited
;(o!t BSE Instit!te =td.
5he BSE Institute Ltd( 7BIL9 is a #holly o#ned s!(sidiary of the
Bom#ay Stock E+chan$e 7BSE9 Ltd(
Bom#ay Stock E+chan$e is the #orld>s (iggest stock exchange in
terms of listed companies and BIL inherits from BSE the knoled$e
and insi$hts into the capital markets industry8 garnered o%er the past
053 years
BIL has the distinct ad"anta$e of #ein$ at the centre of action J the
financial h!( of India8 one of the orlds most rapid emer$in$ markets(
Fur commitment to #ein$ at the forefront of the c!rrent and e%ol%ing
practice of (!siness has led to programs that reflect the realities of
the marketplace
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©2010 BSE Institute Limited
;(o!t BSE Instit!te =td.
:!r co!rse design and de%elopment is firmly $rounded in knoled$e
of #usiness processesK #oth in entrepreneurial companies and
esta#lished firms unconstrained #y the #oundaries of academic
disciplines
:!r fac!lty follos a lon$ tradition of practice-oriented research and
teachin$ that has a profound and far-reachin$ impact on #usiness and
mana$ement education( 5hey help our learners #uild inno"ation in
#usiness practice8 pro$ressi"e thinkin$ and the opportunity to influence
as ell as use these concepts
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©2010 BSE Institute Limited
?lo(al Financial Markets
Professional $?FMP&
BSE Instit!te =td.
=a!nches
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©2010 BSE Institute Limited
?lo(al Financial Markets Professional $?FMP& Program is a !ni!e
comprehensi%e co!rse on financial markets that ill prepare you fora$$ressi"e competition and fast paced decision makin$(
@ey highlights for the st!dentsA
<o the program conc!rrently ith your $raduation
Be jo( ready #y the time you complete your $raduation
'et exposed to the ind!stry en%ironment #efore $ettin$ an actual o#
Be mentored #y an industry professional durin$ the : months of industry
practice
5he pro$ram allos semester #reaks to study for your $raduation e+ams ?et !pdated information a#out the markets as the @th semester is
dynamic semester hich ill co"er emer$in$ trendsK folloed #y a proect
!n ad"anta$e of #ein$ a#sor#ed #y the corporate are orkin$ ith8 durin$
your the ind!stry practice 7! Mentored - Fn o# learnin$9
What is ?FMP
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©2010 BSE Institute Limited
"he ?FMP program targets toC
?room yo! for the 1168@,/ prospecti"e o#s that ill #e created in the
financial ser"ices sector of the Indian economy8 #y the year 201NOO
Prepare yo! for the industry ith the #est8 "ery attracti"e and $enerous
compensation str!ct!reDD
Bridge the e+istin$ manpoer shorta$e in the financial ser"ices sector #y
$uidin$ you toards itOO
B!ild yo!r confidence to face your potential employers8 ho prefer
e+perience o"er formal education in a candidate8 throu$h our intense Industry
PracticeOO
E!ip yo! to u$$le ith multiple responsi#ilities ithin your o# roleOO
Why ?FMP
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©2010 BSE Institute Limited
"he ?FMP program targets toC
?ear yo! !p to handle sit!ations that re?uire ?uick thinkin$8 instant
decision makin$8 specified response time and constant result productionOO
Pro%ide yo! #ith the ad%antage of conc!rrently p!rs!ing the program
along #ith yo!r grad!ationDD
'i"e you the ad%antage of (eing jo( ready #y the time you complete your
$raduationOO
'e%elop yo!r analytical skills and a(ilitiesDD
Enhance yo!r kno#ledge #y learnin$ the latest financial analysis methodsand technolo$yOO
Why ?FMP
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©2010 BSE Institute Limited
;(o!t the ?FMP program
Program '!rationA
6 semesters of classroom $eachsemester of 1 months& - lectures 6
days in a eek for 2 hours each
0 semester of Ind!stry Practice
Program ModeA Interacti"e lectures
%ase study discussions
ands on sessions
Interacti"e simulation la#s
;orkin$ on near real-time data
: months of Industry Practice
7Internship - Fn the o# learnin$9
Eligi(ilityA
nder/grad!ates - complete asu#stantial part of the pro$ram
alon$side your colle$e education(
Fresh grad!ates - ho ant to
#uild their career in financialser"ices
Professionals - 7MB!8
En$ineers8 M(%om8 %!8 %S8
I%;!8 Layers etc(9 ho are
interested in career ad"ancement
throu$h trainin$ and education(
ExaminationA 5here ill #e an e+amination at the end of each semester
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©2010 BSE Institute Limited
Program str!ct!re $Mod!lar&Semester I Semester II
1( Introduction to *inancial Markets
2( Economics for *inancial Markets
6( Statistical %oncepts for *inancial Markets
@( *inancial !ccountin$
( <emat and <epositories
:( 5radin$ and Settlement Processes
/( E)P for Stock Markets
1( *inancial )eportin$ and !nalysis
2( Introduction to %orporate *inance
6( F"er"ie of *inancial Instruments
@( E?uity Markets
( 5he *orei$n E+chan$e Markets
:( <e#t Markets
/( *undamental !nalysis
.( 5echnical !nalysis
Semester III Semester I
1( Bond !rithmetic
2( Asin$ <eri"ati"es
6( Introduction to )isk Mana$ement@( *undamentals of %redit )isk !nalysis
( *inancial Modellin$
:( Securities La
1( Portfolio Mana$ement
2( Market Instruments and Processes
6( Pri"ate E?uity and enture %apital@( Mer$ers and !c?uisitions
( Emer$in$ 5rends
:( Proect ;ork
Pl!s 5rainin$ on Beha"ioral Skills Semester Industry Practice-Internship
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©2010 BSE Institute Limited
Go( Profiles at end of semesters
•SEM 1 H <ealer8 Back office e+ecuti"e indemat8 accounts8 economist in #rokin$ house
• SEM 2 H *undamental )esearch8 5echnical)esearch8 %orporate *inance <epartment8
!nalyst in *ore+ market
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©2010 BSE Institute Limited
Go( Profiles at end of semesters
•SEM 6 H <eri"ati"es strate$ist8 Bond marketdealer8 )isk mana$ement in #roker8 %redit riskin #anks8 !nalyst for future cash flo inmodelin$8 Le$al department of securities firm
• SEM @ H Portfolio mana$er8 *und mana$er8Merchant #ankin$8 Pri"ate e?uity analyst(
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©2010 BSE Institute Limited
C;-EE- :PP:-"I"IES"his program #ill prepare yo! for the follo#ing jo(s at the end of each semesterA
Semester I Semester II
!ssociate Le"elC Professional 5rader8 %ustomer
Ser"ice Mana$er D Bankin$ Specialist8 Bankin$
%enter Super"isor8 5eller8 In"estment Bankin$
!ssociate8 <ata#ase !nalyst
Specialist Le"elC In"estment !nalyst8 )esearch
!nalyst8 In"estment Banker8 Sr( Mana$erH
)etail Bankin$8 Sr( !ssociate-!d"isory8 %redit
Mana$er D Specialist8 !ccountin$ Mana$ers8
Sr( <ata#ase !nalyst8 Sr( Support !nalyst
Semester III Semester I
E+pert Le"elC In"estment !nalyst8 )isk
Mana$er8 In"estment !d"isor8 *inancial !d"isor8
Loan Ffficer8 ;ealth Mana$er8 !udit
%onsultant8 5echnical !nalyst
Professional Le"elC In"estment !nalyst8
Portfolio Mana$er8 In"estment Banker8
Business !nalyst8 Sr( )isk Mana$er-*inancial
Ser"ices8 <ata 'o"ernance Mana$er8 %redit
)isk Mana$er8 Sr( *inance Mana$er
Semester $Ind!stry Practice / Internship&
%ompliance Mana$er-)isk8 )isk D Insurance Mana$er8 *inancial Mana$er8 %orporate
Bankin$8 %redit Mana$er8 5reasurer8 *inancial !nalyst8 Business !nalyst8 Sr( Mana$er-)isk
D )e$ulation8 Fperational )isk Mana$er-%apital Markets8
Sr( %redit )isk Mana$er
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©2010 BSE Institute Limited
;(o!t BSE Instit!te =td.
:!r programs de%elop the st!dents in the follo#ing three areasA
@no#ledge <
!nderstanding of financial
market prod!cts
'e%elop analytical
skills
"he marketen%ironment and
professional (eha%ior
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"hank o!