CBSE Class 11 Syllabus for Foundations of Financial Markets
Foundations of Financial Markets
Time: 3 Hours Marks: 60
Chapter-1: Investment Basics (10 marks)
- Reasons to Invest.
- Time to Invest.
- Precautions to be take while investing.
- Meaning of Interest.
- Factors that determine interest rates.
- Options available for investment.
- Short-term financial options available for investment.
- Long-term financial options available for investment.
- Stock Exchange.
- Debt Instrument.
- Mutual Fund.
Chapter-2: Securities (6 marks)
- Function of Securities Market.
- Types of Securities.
- Need for Regulators.
- Types of Regulators.
- SEBI and its role.
- Participants in the Securities Market.
- Necessity to transact through an intermediary.
- Segments of Securities Market.
Chapter-3: Primary Market (6 marks)
- Role of the â€˜Primary Market’.
- Face Value of a share/debenture.
- Premium and Discount in a Security Market.
3.1 Issue of Shares.
- Public Issue.
- Different kinds of issues.
- Issue price.
- Market Capitalisation.
- Difference between public issue and private placement.
- Initial Public Offer (IPO).
- Pricing of an issue.
- Price discovery through Book Building Process.
- Difference between offer to shares through book building and offer of shares through normal public
- Cut-off Price.
- Floor price in case of book building.
- Price Band in a book built IPO.
- Deciding the Price Band.
- Minimum number of days for which a bid should remain open during book building.
- System to be used for book building.
- Allotment to be used for book building.
- Allotment of shares.
- Time frame to get the shares listed after issue.
- Role of a â€˜Register’ to an issue.
- Role of NSE to facilitate IPO.
- Draft Offer document.
- Abridged Prospectus.
- Role of Merchant Bankers.
- Listing of Securities.
- Listing Agreement.
- Delisting of securities.
- Procedure for filling an Issue by the company.
- Role of SEBI in an issue.
- Investor duty.
3.2 Foreign Capital Issuance.
- Foreign currency resources.
- American Depository Receipt.
- Global Depository Receipts.
Chapter-4: Secondary Market (5 marks)
- Secondary market.
- Role of the Secondary Market.
- Difference between the Primary Market and the Secondary Market.
4.1.1 Stock Exchange
- Role of a Stock Exchange in buying and selling shares.
- Demutalisation of stock exchanges.
- Difference between demutualised exchange different from a mutual exchange.
4.1.2 Stock Trading
- Screen Based Trading.
- Placing orders with the broker.
- Access to internet based trading facility Contract Note.
- Details are required on the contract note issued by the stock broker.
- Maximum brokerage that a broker can charge.
- Reasons to trade on a recognized stock exchange.
- Registration of broker or sub broker.
- Precautions to be taken before investing in the stock markets.
- Do’s and Don’ts while investing in the stock markets.
4.2 Products in the Secondary Markets.
- Types of products dealt in the Secondary Markets.
4.2.1 Equity Investment
- Reasons to invest in equities.
- Average return on Equities in India.
- Factors that influence the price of a stock.
- Meaning of the terms Growth Stock / Value Stock.
- Process to acquire equity shares.
- Bid and Ask Price.
- Advantages of having a diversified portfolio.
4.2.2 Debt Investment
- Debt Instrument.
- Features of debt instruments.
- Interest payable by a debenture or a bond.
- Segments of the Debt Market in India.
- Participant in the Debt Market.
- Credit rating of bonds.
- Acquire securities in the debt market.
Chapter-5: Derivatives (5 marks)
- Types of derivatives.
- Option premium.
- Commodity exchange.
- Meaning of commodity.
- Commodity derivatives market.
- Difference between commodity and financial derivatives.
Chapter-6: Depository (5 marks)
- Role of depository similar to a bank.
- Types of depositories in India.
- Benefits of participation in a depository.
- Depository participant (DP).
- Minimum balance requirement with DP.
- Dematerialisation of odd lot shares.
- Features of dematerialised shares.
- Dematerialisation of debt instruments, mutual fund units and government securities.
Chapter-7: Mutual Funds (5 marks)
- Regulatory body for Mutual Funds.
- Benefits of investing in Mutual Funds.
- Risks involved in investing in Mutual Funds.
- Different types of Mutual Funds.
- Different investment plans that Mutual Funds offer.
- The rights that are avlaible to a Mutual Funds holder in India.
- Fund Offer document.
- Active fund management.
- Passive Fund Management.
Chapter-8: Miscellaneous (4 marks)
8.1 Corporate Actions.
- Corporate Actions.
- Divided yield.
- Stock Split.
- Reasons for Stock Split.
- Buyback of Shares.
- The Nifty Index.
8.3 Clearing & Settlement and Redressal.
- Clearing Corporation.
- Rolling Settlement.
- Pay-in and Pay-out.
- Book-closure/Record date.
- No-delivery period.
- Ex-dividend date.
- Resources available to investor/client for redressing his grievances.
- Investor Protection Fund.
Chapter-9: Concepts & Modes of Analysis (10 marks)
- Simple Interest.
- Compound Interest.
- Time Value of Money.
- Computation of Time Value of Money.
- Effective Annual Return.
- Systematically analyzing a company.
- Annual Report.
- Features of an Annual Report.
- Difference between Balance Sheet and Profit and Loss Account Statements Sources of Funds.
- Difference between Equity shareholders and Preferential shareholders.
- Difference between secured and unsecured loans under Loan Funds.
- Application of Funds.
- Meaning of â€˜Gross block’, â€˜Depreciation’, Net Block’ and â€˜Capital-Work in Progress’ Current Liabiilties
- and Provisions and Net Current Assets in the balance sheet.
- Summarizing balance sheet.
- Components of Profit and Loss Account statement.
- Check points for a Profit and Loss Account.
Chapter-10: Ratio Analysis (4 marks)
LIST OF PRACTICAL SUBJECTS
- Numeric Speed Accelerator (NSA)
- Function Key Accelerator (FKA)
- Trading Skill Accelerator (TSA)
- Now Simulation Mutual Fund Service System (NSM)
LIST OF EQUIPMENTS AND SOFTWARE
- Manual for Various Software / Assorted Reference Books.
- Demonstration Stand.
- Computer Consumable Stationery.
- LCD Projector.
- NSE â€“ NLT Module.