FINANCIAL MARKETS AND 
                              INSTITUTIONS  
                                    (MCM3EF02)  
                                              
                                               
                                                       
                                               
                          SELF LEARNING MATERIAL 
                                               
                               ELECTIVE : FINANCE  
                                      III SEMESTER  
                                              
                        MASTER OF COMMERCE  
                                  (2019 Admission) 
              
                         UNIVERSITY OF CALICUT 
                         SCHOOL OF DISTANCE EDUCATION  
                              CALICUT UNIVERSITY P.O.  
                          MALAPPURAM - 673 635, KERALA 
              
              
              
                                         190615 
                                                         
              
          School of Distance Education 
          University of Calicut 
           
          Self Learning Material  
          III Semester 
           
          Master of Commerce 
          (2019 Admission) 
            
          Elective : Finance  
          MCM3EF02: Financial Markets and Institutions  
           
          Prepared by: 
          SAUMYA C MANOHARAN  
          Guest Lecturer  
          Department of Management Studies 
          Central University of Kerala, Kasargod.  
           
          Scrutinized by:  
          LAKSHMI VARMA 
          Guest Lecturer  
          Department of Management Studies 
          Central University of Kerala, Kasargod. 
           
           
                             DISCLAIMER 
                 "The author(s) shall be solely responsible  
                       for the content and views  
                        expressed in this book". 
           
                                          
                                          
                                          
                                          
                                          
                            TABLE OF CONTENTS 
             
              Unit                   Title                  Page No. 
                1     An Overview of Financial Markets        1 - 34  
                2     Commodity Markets                      35 - 60  
                3     Financial Instruments                  61 - 76  
                4     Development Financial Institutions    77 - 139  
                5     Foreign Capital Flows                 140 - 158  
             
                      MCM3EF02 - FINANCIAL MARKETS & 
                                    INSTITUTIONS 
                                              
             Syllabus 
             Unit I 
             An  Overview  of  Financial  Markets:  Financial  Markets  – 
             Nature  –  Functions  –  Money  market  –  Capital  market  – 
             Markets for derivatives – working of stock exchange in India – 
             NSE and BSE – Role of  SEBI  – Major  international  stock 
             markets. 
             Unit II 
             Commodity markets: MCX, NCDEX and ICEX – Functions, 
             administration,   regulations   and  general  mechanism  – 
             International  commodity  markets  –  Debt  market  –  Types, 
             functions, instruments – Operational mechanism - Hindrances 
             for the development of debt market. 
             Unit III 
             Financial  instruments  –  issue  of  financial  instruments  – 
             Primary issue, book building process, private placement, offer 
             for  sale,  buy  back  of  shares  –  various  innovative  financial 
             instruments, bitcoin, crypto currency etc. 
             Unit IV 
             Development Financial Institutions: AMFI, IFCI, NABARD, 
             SFCs,  UTI,  SIDBI  –  Mutual  Funds,  SEBI  guidelines  on 
             mutual fund – Provident Fund – Pension Funds –  PFRDA  – 
             Insurance companies – IRDA. 
             Unit V 
             Foreign capital flows: forms of foreign capital – FDI and FPI – FIIs 
             – International financial instruments – ADR, GDR, IDR and Euro 
             bonds – Role of foreign capital in Indian financial system – Trends 
             in  foreign  capital  inflows  to  India  –  Regulatory  framework  for 
             foreign capital flows.