Capital Market and Securities Laws

Paper Code: 
BCS 215
Credits: 
3
Contact Hours: 
45.00
Max. Marks: 
100.00
Objective: 

To acquire knowledge and understanding of securities laws and the regulatory framework of capital markets.

9.00
Unit I: 
Overview of Capital Market

Indian Capital Market
• Authorities Governing Capital Markets in India
• Profile of Securities Market
• Securities Market Reforms and Regulatory Measures to Promote Investor Confidence
• Features of Developed Capital Market: IOSCO
• Overview of Depository System in India
Capital Market Instruments and Rating
• Capital Market Instruments: Equity, Debentures, Preference Shares, Sweat Equity, Non-Voting Shares, Share Warrants
• Pure, Hybrid and Derivatives
• Rating and Grading of Instruments: Concept, Scope and Significance, Regulatory Framework
• Rating Agencies in India, Rating Methodologies
Securities Market Intermediaries
• Primary Market and Secondary Market Intermediaries: Role and Functions, Merchant Bankers, Stock Brokers, Syndicate Members, Registrars, Underwriters, Bankers to an Issue, Portfolio Managers, Debenture Trustees, Foreign Institutional Investors, Depositories, Depositories Participants, Custodians, Credit Rating Agencies, Venture Capitalists.

9.00
Unit II: 
Market Infrastructure Institutions - Stock Exchanges

Functions and Significance of Stock Exchanges
• Operations and Trading Mechanism of Stock Exchanges
• Settlement of Securities, Stock Market Indices, Risk Management,
Surveillance Mechanism at Stock Exchanges, Straight through Processing
• Demutualization of Stock Exchanges
• SME Exchange
Debt Market
• Debt Market: Instruments, Listing, Primary and Secondary Segment
Money Market
• Growth of Money Market in India – Structure and Institutional Mechanism
• Money Market Instruments: Treasury Bills, Commercial Bills, Commercial Paper, Factoring Agreements & Discounting of Bill
Mutual Funds
• Mutual Fund: Introduction, Definitions, Schemes, Risks Involved, Setting Up of Mutual Funds, Role in Financial Market

9.00
Unit III: 
Collective Investment Schemes

• Regulatory Framework
• Restrictions on Business Activities
• Submission of Information and Documents
• Trustees and their Obligations
Resource Mobilization in International Capital Market
• Listing of Securities Issued Outside India
• Foreign Currency Convertible Bonds
• Global Depository Receipts
• American Depository Receipts
• External Commercial Borrowings
• Procedure for Issue of Various Instruments
Indian Depository Receipts
Indian Depository Receipts: Procedure for Making Issue of IDRs,
Conditions for Issue of IDRs, Listing of IDRs

9.00
Unit IV: 
Securities Contracts (Regulation) Act, 1956

SEBI Act, 1992
Objective, Power and Functions of SEBI
• Securities Appellate Tribunal, Appeals, Appearance before SAT
Depositories Act, 1996
• Definitions, Setting up of Depository, its type, Role and Functions
• Depository Participants
• Admission of Securities
• Difference between Dematerialization & Rematerialisation
• Depository Process
• Inspection and Penalties
• Internal Audit and Concurrent Audit of Depository Participants

9.00
Unit V: 
Issue and Listing of Securities

• Listing of Securities
• Issue of Capital and Disclosure Requirements (ICDR)
• Procedure for Issue of Various Types of Shares and Debentures
• Employee Stock Option Scheme and Employee Stock Purchase Scheme
• Delisting of Securities
Regulatory Framework relating to Securities Market Intermediaries
• Primary Market and Secondary Market Intermediaries: Role and Functions, Merchant Bankers, Stock Brokers, Syndicate Members, Registrars, Underwriters, Bankers to an Issue, Portfolio Managers, Debenture Trustees, Foreign Institutional Investors, Custodians, Credit Rating Agencies, Venture Capitalists
An Overview of Law relating to Insider Trading and Takeovers

References: 

1. Investment Management-Security Analysis and Portfolio Management, -V.K Bhalla (S Chand & Co Ltd)
2. Study Material Published by ICSI
3. Scanner-Arun Kumar(Shuchita Prakashans(P) Ltd)
4. Indian Financial System-M.Y Khan(Tatal Mc Graw Hill New Delhi)
5. Guide to Indian Capital Market-Sanjeev Agarwal(Bharat Law Hous New Delhi)
6. Capital Market in India- E Gordon & K Natarajan (Himalaya Publishing House, Mumbai)
7. Indian Financial System,- H.R Machiraju( Vikas Publishing House Pvt Ltd)
8. Journal-SEBI and Corporate Laws (Taxmann)
9. Journal-SEBI Monthly Bulletin
10. Website-www.sebi.gov.in

Academic Year: