Lovely Professional University, Punjab

Course Code MGT959 Course Category Course Title STOCK MARKET OPERATIONS Courses with numerical and conceptual focus Course Planner 14760::Bhavdeep Singh Kochar Lectures 3.0 Tutorials Practicals Credits 0.0 0.0 3.0

TextBooks Sr No T-1 Title Capital Markets Dealer Module Reference Books Sr No R-1 R-2 Other Reading Sr No OR-1 OR-2 OR-3 OR-4 OR-5 OR-6 OR-7 Journals articles as Compulsary reading (specific articles, complete reference) A Study on Investors' Reaction towards Share Buyback in India. By: Mohanty, Munmun; Panda, Shradhanjali. European Journal of Social Science. Jun2011, Vol. 22 Issue 2, p193-201 , Stock's Misvaluation, Growth Opportunity and the Performance of Open-market Stock Repurchases. By: Lee-Young Cheng; Yue-Ling Fan. International Research Journal of Finance & Economics. 2010, Issue 41, p137-151 , Stock Market Reaction to Unexpected Growth in Marketing Expenditure: Negative for Sales Force, Contingent on Spending Level for Advertising. Full Text Available By: Kim, MinChung; McAlister, Leigh M. Journal of Marketing. Jul2011, Vol. 75 Issue 4, p68-85 , Financial system security: Harshad Mehta and the billion dollar scam, By: Goyal Preeti, Dhamija Sanjay. Asia case research centre. Accessed from HBSP.HARVARD.EDU , Economic Growth, Expected Stock Returns and Volatility: A Case of Indian Stock Market. Full Text Available By: Kumar, Rakesh; Tamimi, Mohammad. International Journal of Applied Economics & Finance. 2011, Vol. 5 Issue 4, p257-268 , Cross-Sectional Dispersion in the Indian Stock Market. Full Text Available By: Maheswaran, S.; Balasubramanian, G.; Yoonus, C. A. Decision (0304-0941). Dec2011, Vol. 38 Issue 3, p68-101 , The Indian Stock Market. http://www.investopedia.com/articles/stocks/09/indian-stock-market.asp#axzz1Rrnx8cba , Title Securities Market Basic Module (Revised) Indian Financial System Author National Stock Exchange Varshney and mittal Edition 1st 4th 2007 Year Publisher Name National Stock Exchange SULTAN CHAND & SONS Author National Stock Exchange Edition 1st Year Publisher Name National Stock Exchange

Relevant Websites Sr No RW-1 RW-2 RW-3 RW-4 (Web address) (only if relevant to the course) http://www.moneycontrol.com/portfolio_plus/sso/portfolio_signup.php http://www.youtube.com/watch?v=2THRfatZSwo&fea ture=related http://www.youtube.com/watch?v=YXlCu8QTddw&fe ature=fvw http://www.indiaipo.com/details.php?type=Current% 20IPO# Salient Features Students can make their online virtual portfolio on this link. Live stock trading/video Stock Investment tips/video A Complete Database of IPO's

RW-5 RW-6 RW-7 RW-8 RW-9 RW-10 RW-11 RW-12 RW-13 RW-14

http://www.capitalmarket.com/MarketBeat/nsmargin.htm http://www.capitalmarket.com/MarketBeat/nsmargin.htm http://www.bseindia.com/mktlive/bhavcopy.asp

Window Operations Margin Claculations Access to Daily bhav Copy

http://www.managementparadise.com/forums/stock - marketstips- gyan/24338-how-fill- Steps for form filling to become member of stock exchange. up-your- ipo-application.html http://www.iepf.gov.in http://www.nseindia.com/sub-brokers http://www.sharemarketbasics.com/Terms/index-C.php http://www.altiusdirectory.com/Finance/nsccl.html http://www.bseindia.com/downloads/RegionalStockExchanges .pdf http://www.nseindia.com/content/members/mem_subbroker.ht m A website of ministry of corporate affairs regarding Investor protection rights Forms to become sub broker Stock Market Glossary NSCCL details RegionalStockExchange sub broker membership

LTP week distribution: (LTP Weeks) Weeks before MTE Weeks After MTE Spill Over 7 6 2

Detailed Plan For Lectures

Week Number Lecture Number Broad Topic(Sub Topic) Chapters/Sections of Text/reference books Other Readings, Lecture Description Relevant Websites, Audio Visual Aids, software and Virtual Labs RW-1 Introduction to various primary and secondary market instruments Learning Outcomes Pedagogical Tool Demonstration/ Case Study / Images / animation / ppt etc. Planned VideoTrading basicshttp wwwyoutubecom watch v0O8uM9WERM VideoTrading basicshttp wwwyoutubecom watch v0O8uM9WERM

Week 1

Lecture 1

Securities Market of India(Primary and Secondary Market)

T-1:Chapter 1 R-1:Chapter 2 R-2:Chapter 12

Student will get the basics of IPO, FPO, etc and how trading is done in secondary market Student will get the basics of IPO, FPO, etc and how trading is done in secondary market

Lecture 2

Securities Market of India(Primary and Secondary Market)

T-1:Chapter 1 R-1:Chapter 2 R-2:Chapter 12

RW-1

Introduction to various primary and secondary market instruments

Lecture 3

Securities Market of India (Government Securities Market)

R-1:Chapter 4

RW-3

Various Government Students will learn what securities and bonds and are riskfree instruments their risk and how they are traded

Week 2

Lecture 4

Trading Membership on Stock Exchange(Eligibility for Stockbroker and sub-broker membership on Stock Exchange)

T-1:Chapter 2

RW-8

Eligibility criteria for a person to become stockbroker and subbroker on National Stock Exchange

Students will come to know all the eligibility criteria regarding education, capital,etc required to become member of stockexchange Students will come to know all the eligibility criteria regarding education, capital,etc required to become member of stockexchange Students will learn how, they can get themselves registered on NSE and BSE as trading member Students will learn how, they can get themselves registered on NSE and BSE as trading member

VideoSub broker membership

Lecture 5

Trading Membership on Stock Exchange(Eligibility for Stockbroker and sub-broker membership on Stock Exchange)

T-1:Chapter 2

RW-8

Eligibility criteria for a person to become stockbroker and subbroker on National Stock Exchange

VideoSub broker membership

Lecture 6

Trading Membership on Stock Exchange(Registration procedure on NSE and BSE) Trading Membership on Stock Exchange(Registration procedure on NSE and BSE) Trading Mechanism on Stock Exchange(Introduction to NEAT and BOLT)

R-1:Chapter 2

RW-10 RW-14

The detailed procedure for registration as a trading member on NSE and BSE The detailed procedure for registration as a trading member on NSE and BSE The software used in NSE and BSE viz NEAT and BOLT will be explained The software used in NSE and BSE viz NEAT and BOLT will be explained

Week 3

Lecture 7

R-1:Chapter 2

RW-10 RW-14

Lecture 8

T-1:Chapter 3

Students will learn how VideoBSEhttp at backend online wwwyoutubecom trading is done and how watchvlGy2nwItsjw to use the same for trading Students will learn how VideoBSEhttp at backend online wwwyoutubecom trading is done and how watchvlGy2nwItsjw to use the same for trading Students will learn the Videostock Trading significance of open and close market phases and how and by whom trading is done in those phases Students will learn the Videostock Trading significance of open and close market phases and how and by whom trading is done in those phases

Lecture 9

Trading Mechanism on Stock Exchange(Introduction to NEAT and BOLT)

T-1:Chapter 3

Week 4

Lecture 10

Trading Mechanism on Stock Exchange(Market Phases)

T-1:Chapter 3

RW-11

Various market phases viz open and close

Lecture 11

Trading Mechanism on Stock Exchange(Market Phases)

T-1:Chapter 3

RW-11

Various market phases viz open and close

Week 4

Lecture 12

Trading Mechanism on Stock Exchange(Market Watch, Security Descriptor, Market by Price, Previous Trades, Outstanding Orders, Activity Log, Order Status, Snap Quote, Market Movement, Market Inquiry) Trading Mechanism on Stock Exchange(Market Watch, Security Descriptor, Market by Price, Previous Trades, Outstanding Orders, Activity Log, Order Status, Snap Quote, Market Movement, Market Inquiry) Order Manaement(Entering Orders, Order Modification, Order Cancellation & Order Matching)

T-1:Chapter 3

RW-5

Previous Trades, Outstanding Orders, Activity Log, Order Status, Snap Quote, Market Movement, Market Inquiry Previous Trades, Outstanding Orders, Activity Log, Order Status, Snap Quote, Market Movement, Market Inquiry How to enter, modify and cancel the trading orders

Students will learn to Video on market check various market window operations terminologies like snap quote, market inquiry, etc from the software

Week 5

Lecture 13

T-1:Chapter 3

RW-5

Students will learn to Video on market check various market window operations terminologies like snap quote, market inquiry, etc from the software

Lecture 14

T-1:Chapter 3

OR-3

Students will learn how Video on trading market price of a liquid security is discovered by order matching and will learn to enter, modify and cancel orders Students will learn how Video on trading market price of a liquid security is discovered by order matching and will learn to enter, modify and cancel orders Students will learn to do trading on NSE and BSE Students will learn to do trading on NSE and BSE

Lecture 15

Order Manaement(Entering Orders, Order Modification, Order Cancellation & Order Matching)

T-1:Chapter 3

OR-3

How to enter, modify and cancel the trading orders

Week 6

Lecture 16

Order Manaement(Trade management- Trade Modification & Trade Cancellation) Order Manaement(Trade management- Trade Modification & Trade Cancellation) Auction(Entering auction orders)

T-1:Chapter 3

OR-2

How trading is done on stock exchange

Lecture 17

T-1:Chapter 3

OR-2

How trading is done on stock exchange

Lecture 18

T-1:Chapter 3

What is auction market Students will learn the and what are the timings basics of Auction of the same market and its functionality What is auction market Students will learn the and what are the timings basics of Auction of the same market and its functionality RW-2 Matching of orders in the Students will learn how auction market to modify or cancel orders in auction market and how order matching is done in auction market

Week 7

Lecture 19

Auction(Entering auction orders)

T-1:Chapter 3

Lecture 20

Auction(Modification, matching and cancelling or auction orders)

T-1:Chapter 3

Week 7

Lecture 21

Auction(Modification, matching and cancelling or auction orders)

T-1:Chapter 3

RW-2

Matching of orders in the Students will learn how auction market to modify or cancel orders in auction market and how order matching is done in auction market

MID-TERM
Week 8 Lecture 22 Clearing and Settlement(Securities settlement and settlement cycle) T-1:Chapter 4 OR-5 OR-6 Settlement of securities and settlement cycle Students will come to know the intermediaries involved in the settlement cycle and its whole process Students will come to know the intermediaries involved in the settlement cycle and its whole process Students will learn the Video on NSDL and role and functioning of CDSL NSDL and CDSL as settlement agencies of NSE and BSE Students will learn the Video on NSDL and role and functioning of CDSL NSDL and CDSL as settlement agencies of NSE and BSE

Lecture 23

Clearing and Settlement(Securities settlement and settlement cycle)

T-1:Chapter 4

OR-5 OR-6

Settlement of securities and settlement cycle

Lecture 24

Clearing and Settlement(Role of NSDL and CDSL in funds settlement and shortages handling)

T-1:Chapter 4

OR-7

Apex bodies in settlement of securities

Week 9

Lecture 25

Clearing and Settlement(Role of NSDL and CDSL in funds settlement and shortages handling)

T-1:Chapter 4

OR-7

Apex bodies in settlement of securities

Lecture 26

Risk containment measures (Capital Adequacy Requirements)

T-1:Chapter IV

Capital adequacy Student will learn the requirements for being a requirements for being member member of stock exchange of various segments in terms of capital adequacy RW-6 what are margins and how are they settled Students will learn how Slide show risk is mitigated by margins and how this margin is calculated by various methods Students will come to know the process of dematerialisation and how securities are transferred electronically

Lecture 27

Risk containment measures (Margins, Settlement Guarantee, No-Delivery Period)

T-1:Chapter 4

Week 10

Lecture 28 Lecture 29 Risk containment measures (Dematerialisation And Electronic Transfer of Securities and NSCCL.) T-1:Chapter 4

Homework 2 Role of NSCCL in clearing and dematerialisation of securities

Week 10

Lecture 30

Risk containment measures (Dematerialisation And Electronic Transfer of Securities and NSCCL.)

T-1:Chapter 4

Role of NSCCL in clearing and dematerialisation of securities

Students will come to know the process of dematerialisation and how securities are transferred electronically what are the various provisions in clearing and settlement as per depositories act, 1996 what are the various provisions in clearing and settlement as per depositories act, 1996 Slide show by teacher

Week 11

Lecture 31

Depositories Act(Depositories Act, 1996 (Role and functioning of NSDL &CDSL)) Depositories Act(Depositories Act, 1996 (Role and functioning of NSDL &CDSL)) Depositories Act(Income Tax Provisions w.r.t. Stock market transactions)

T-1:Chapter 5

Various features of depositories Act, 1996

Lecture 32

T-1:Chapter 5

Various features of depositories Act, 1996

Lecture 33

T-1:Chapter 5

What are the various Students will learn to income tax provisions in calculate tax trading of securities obligations in case of various security transactions Homework 3 How time value of money is calculated FVIFA, PVIFA, etc

Week 12

Lecture 34 Lecture 35 Lecture 36 Fundamental valuation Concepts (Time value of money) Fundamental valuation Concepts (Understanding Financial Statements) T-1:Chapter 6 T-1:Chapter 6

How to analyze financial Students will learn to statements of a company read and analyze financial statements of a company by various methods How to analyze financial Students will learn to statements of a company read and analyze financial statements of a company by various methods OR-1 RW-13 Various reforms in secondary market introduced till date to facilitate trading Students will come to know about various reforms introduced by policy makers to enhance liquidity and bring reforms in the economy and their implications Students will Slide show understand the concept of FIIs and the policies related to the same

Week 13

Lecture 37

Fundamental valuation Concepts (Understanding Financial Statements)

T-1:Chapter 6

Lecture 38

Contemporary issues in Capital Markets(Reforms in Secondary Market)

R-2:Chapter 12

Lecture 39

Contemporary issues in Capital Markets(Policies related to FII's)

R-2:Chapter 12

Understand FIIs and various policies related to it

SPILL OVER
Week 14 Lecture 40 R-1:Chapter 5 OR-4 Financial system security Students will learn Harshad Mehta and the about the Harshad billion dollar scam Mehta scam and the loopholes prevelant in the system at that time Derivatives Meaning Students will have the basic understanding of derivatives market and its functionality Case study

Lecture 41

R-1:Chapter 5

Scheme for CA:

Component Homework Frequency 2 Total :Out Of 3 Each Marks Total Marks 10 10 20 20

Details of Academic Task(s)

AT No. Objective Topic of the Academic Task Nature of Academic Task (group/individuals/field work Evaluation Mode Allottment / submission Week 3/4

Homework 1

To develop stock picking skills of students

Student are suppose to analysis the share price of given company Individual along with the movement of Sensex , Calculate their P/E ratio, Debt/ Equity ratio, Growth in sales and profit, Market share of Co. along with its competitors and major events affecting company share price for the last three years period.

Quality of content in the report [10],Analysis of company performance [10] and Suggestions for the company [10] =Total [30]. 20003000 words or 4to 6 pages Test should have six questions of 5 marks each.Total=30 Test should have six questions of 5 marks each.Total=30

Homework 3

To test the knowledge and subject understanding of students To test the understanding of subject

A class test to be conducted of duration 45 minutes from Unit 6 to Individual 10

11 / 12

Homework 2

A class test of 45 minutes to be conducted to evaluate the basic concepts from Unit 6 and unit 7

Individual

8/9