Lovely Professional University, Punjab

Course Code MGT959 Course Category Course Title STOCK MARKET OPERATIONS Courses with conceptual focus Course Planner 14723::Lalit Kumar Bhardwaj 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) Companies defying the SEBI laws, Business Today. 10/28/2012, Vol. 21 Issue 22, p42-46. 4p , A Legal perspective on securities Arbitration, IUP Journal of Corporate & Securities Law. Aug2009, Vol. 6 Issue 3/4, p100-108. 9p. , Effect of Capital markets on environment, Golden Research Thoughts (April ; 2012), Vol.1,Issue.X/April; 2012 , Efficiency and Fairness in Capital Market: An Analysis of IPO Scam 2006, The XIMB Journal of Management. Mar2009, Vol. 6 Issue 1, p107-118. 12p. 3 Charts. , Impact of internet growth on online trading, Journal of Internet Banking & Commerce. Dec2011, Vol. 16 Issue 3, Special section p1-10. 10p. , Investor education and protection, Golden Research Thoughts. Feb2012, Vol. 1 Issue 8, p15-17. 3p. , Share trading in India, A historical perspective by L.C. Gupta, Prajnan January-March 2011, Vol XXX No 4 , 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 RW-5 RW-6 (Web address) (only if relevant to the course) Salient Features http://www.investopedia.com/articles/stocks/09/indian-stock-market.aspaxzz1Rrnx8cba Indian Stock Markets and other details 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&feature=fvw http://www.indiaipo.com/details.php?type=Current% 20IPO http://www.capitalmarket.com/MarketBeat/nsmargin.htm Students can make their online virtual portfolio on this link. Live Stock trading/ Video Stock Investment Tips/Videos AComplete database of IPO's Stock market Window operations

RW-7 RW-8 RW-9 RW-10 RW-11 RW-12 RW-13 RW-14 RW-15 RW-16 RW-17 RW-18

http://www.capitalmarket.com/MarketBeat/nsmargin.htm http://www.bseindia.com/sensexview/sensexview.htm http://www.managementparadise.com/forums/stock - marketstips- gyan/24338-howfillup- 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.htm http://www.rbi.org.in/scripts/FAQView.aspx?Id=79 sebi.gov.in www.incometaxindia.gov.in

Margin Calculations Movement and volume of individual stocks in BSE 30 Steps for form filling to become member of stock exchange. 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 Government securities in India Stock market reforms Income tax provisions regarding capital markets

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-17 basics of a security market, primary secondary market their respective role Govt securities market and their respective instruments Learning Outcomes Pedagogical Tool Demonstration/ Case Study / Images / animation / ppt etc. Planned

Week 1

Lecture 1

Securities Market of India(Primary and Secondary Market)

T-1:Ch 1

Students will be PPT, Discussion enabled to distinguish between primary secondary markets and their uses Enable students to analyse the various Govtsecurities PPT, Discussion

Lecture 2

Securities Market of India (Government Securities Market)

R-2:Ch 9

RW-16

Week 1

Lecture 3

Securities Market of India (Government Securities Market) Trading Membership on Stock Exchange(Eligibility for Stockbroker and sub-broker membership on Stock Exchange) Trading Membership on Stock Exchange(Registration procedure on NSE and BSE) Trading Mechanism on Stock Exchange(Introduction to NEAT and BOLT) Trading Mechanism on Stock Exchange(Market Phases) 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)

R-2:Ch 9

RW-16

Govt securities market and their respective instruments Eligibility conditions to become a stock broker sub broker in a stock exchange Details of registration process to become a member be discussed

Enable students to analyse the various Govtsecurities

PPT, Discussion

Week 2

Lecture 4

T-1:Ch 2

RW-9

Students will be able to PPT, Discussion identify who can or cannot become a stock broker sub broker Enable students about registration procedure on NSE BSE PPT, Discussion

Lecture 5

T-1:Ch 2

Lecture 6

T-1:Ch 3

Functions and use NEAT Enable students on PPT, Discussion BOLT systems NEAT BOLT systems Various phases of trading Students will to be discussed understand the various market phases RW-3 Market Watch, Security Descriptor, Market by Price, Previous Trades, Outstanding Orders, Activity Log, Order Status, Snap Quote, Market Movement, Market Inquiry PPT, Discussion

Week 3

Lecture 7

T-1:Ch 3

Lecture 8

T-1:Ch 3

Enable students PPT, Discussion regarding Market Watch, Security Descriptor, Market by Price, Previous Trades, Outstanding Orders, Activity Log, Order Status, Snap Quote, Market Movement, Market Inquiry Enable students PPT, Discussion regarding Market Watch, Security Descriptor, Market by Price, Previous Trades, Outstanding Orders, Activity Log, Order Status, Snap Quote, Market Movement, Market Inquiry Enable students on PPT, Discussion, E Entering Orders, Order learning Modification, Order Cancellation Order Matching Enable students on PPT, Discussion, E Entering Orders, Order learning Modification, Order Cancellation Order Matching Enable students to trade PPT, Discussion on stock exchanges Enable students to trade PPT, Discussion on stock exchanges

Lecture 9

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)

T-1:Ch 3

RW-3

Market Watch, Security Descriptor, Market by Price, Previous Trades, Outstanding Orders, Activity Log, Order Status, Snap Quote, Market Movement, Market Inquiry

Week 4

Lecture 10

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

T-1:Ch 3

Entering Orders, Order Modification, Order Cancellation Order Matching Entering Orders, Order Modification, Order Cancellation Order Matching RW-3 RW-3 Trade initiation through an order Trade initiation through an order

Lecture 11

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

T-1:Ch 3

Lecture 12 Week 5 Lecture 13

Order Manaement(Trade management) Order Manaement(Trade management)

T-1:Ch 3 T-1:Ch 3

Week 5

Lecture 14 Lecture 15

Order Manaement(Trade modification) Order Manaement(Trade cancellation) Auction(Entering auction orders)

T-1:Ch 3 T-1:Ch 3 T-1:Ch 3

How to modify an order Students will be able to PPT, Discussion already placed modify their orders How to cancel an order Entering auction orders Enable students to cancel the trade orders Enable students regarding Entering auction orders PPT, Discussion PPT, Discussion

Week 6

Lecture 16

Lecture 17

Auction(Modification, matching and cancelling or auction orders)

T-1:Ch 3

Modification, matching Enable students and cancelling or auction toModification, orders matching and cancelling or auction orders Modification, matching Enable students and cancelling or auction toModification, orders matching and cancelling or auction orders Introduction to NEAT and BOLT Discussion on various market phases Market Watch, Security Descriptor, Market by Price, Previous Trades, Outstanding Orders, Activity Log, Order Status, Snap Quote, Market Movement, Market Inquiry Enable students to use NEAT and BOLT systems Students will develop an understanding of market phases

PPT, Discussion

Lecture 18

Auction(Modification, matching and cancelling or auction orders)

T-1:Ch 3

PPT, Discussion

Week 7

Lecture 19

Auction(Introduction to NEAT and BOLT) Auction(Market Phases)

T-1:Ch 3

PPT, Discussion

Lecture 20

T-1:Ch 3

PPT, Discussion

Lecture 21

Auction(Market Watch, Security Descriptor, Market by Price, Previous Trades, Outstanding Orders, Activity Log, Order Status, Snap Quote, Market Movement, Market Inquiry)

T-1:Ch 3

Students will develop PPT, Discussion an understandin on Market Watch, Security Descriptor, Market by Price, Previous Trades, Outstanding Orders, Activity Log, Order Status, Snap Quote, Market Movement, Market Inquiry

MID-TERM
Week 8 Lecture 22 Clearing and Settlement(Securities settlement and settlement cycle) Clearing and Settlement(Securities settlement and settlement cycle) Clearing and Settlement(Role of NSDL and CDSL in funds settlement and shortages handling) T-1:Ch 4 Securities settlement and Enable students about settlement cycle settlement cycle securities settlement Securities settlement and Enable students about settlement cycle settlement cycle securities settlement RW-13 Role of NSDL and CDSL in funds settlement and shortages handling PPT, Discussion

Lecture 23

T-1:Ch 4

PPT, Discussion

Lecture 24

T-1:Ch 4

Develops an PPT, Discussion understanding on Role of NSDL and CDSL in funds settlement and shortages handling

Week 9

Lecture 25

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

T-1:Ch 4

RW-13

Role of NSDL and CDSL in funds settlement and shortages handling Capital Adequacy Requirements

Develops an PPT, Discussion understanding on Role of NSDL and CDSL in funds settlement and shortages handling Students will Brain storming, understand the Discussion requirement of adequate caital Students will Brain storming, understand the Discussion requirement of adequate caital Enable students on PPT, Discussion Margins, Settlement Guarantee, NoDelivery Period Enable students on PPT, Discussion Margins, Settlement Guarantee, NoDelivery Period Students will be enabled to use Dematerialisation And Electronic Transfer of Securities and NSCCL Students will be enabled to use Dematerialisation And Electronic Transfer of Securities and NSCCL PPT, Discussion

Risk containment measures (Capital Adequacy Requirements)

T-1:Ch 4

RW-17

Lecture 26

Risk containment measures (Capital Adequacy Requirements)

T-1:Ch 4

RW-17

Capital Adequacy Requirements

Lecture 27

Risk containment measures (Margins, Settlement Guarantee, No-Delivery Period) Risk containment measures (Margins, Settlement Guarantee, No-Delivery Period) Risk containment measures (Dematerialisation And Electronic Transfer of Securities and NSCCL.) Risk containment measures (Dematerialisation And Electronic Transfer of Securities and NSCCL.) Depositories Act(Depositories Act, 1996 (Role and functioning of NSDL &CDSL)) Depositories Act(Income Tax Provisions w.r.t. Stock market transactions)

T-1:Ch 4

RW-7

Margins, Settlement Guarantee, NoDelivery Period Margins, Settlement Guarantee, NoDelivery Period Dematerialisation And Electronic Transfer of Securities and NSCCL

Week 10

Lecture 28

T-1:Ch 4

RW-7

Lecture 29

T-1:Ch 1 and Ch 4

RW-13

Lecture 30

T-1:Ch 1 and Ch 4

RW-13

Dematerialisation And Electronic Transfer of Securities and NSCCL

PPT, Discussion

Week 11

Lecture 31

T-1:Ch 5

RW-13

Role and functioning of NSDL CDSL

Students will PPT, Discussion understand the Role and functioning of NSDL CDSL Enable students on PPT, Discussion Income Tax Provisions wrt Stock market transactions Students will become aware of various Secondary market reforms Brain storming, discussion

T-1:Ch 5

Income Tax Provisions wrt Stock market transactions RW-17 Reforms in Secondary Market

Lecture 32

Contemporary issues in Capital Markets(Reforms in Secondary Market) Contemporary issues in Capital Markets(Policies related to FII's) Fundamental valuation Concepts (Time value of money)

R-2:Ch 15

Lecture 33

RW-17

Policies formed by SEBI Enable students to PPT, Discussion regarding FIIs understand the policies formed for FIIs PV, FV Lump sum and Enable students to annuities, EIR with understand the Time compounding value of money Problem solving

Week 12

Lecture 34

T-1:Ch 6

Week 12

Lecture 35

Fundamental valuation Concepts (Time value of money) Fundamental valuation Concepts (Understanding Financial Statements) Fundamental valuation Concepts (Understanding Financial Statements)

T-1:Ch 6

PV, FV Lump sum and Enable students to annuities, EIR with understand the Time compounding value of money RW-2 Analysis of cash flow statements of any company Analysis of cash flow statements of any company Students will develop an understanding of Financial statements Students will develop an understanding of Financial statements

Problem solving

Lecture 36

T-1:Ch 6

Problem solving

Week 13

Lecture 37

T-1:Ch 6

RW-2

Problem solving

SPILL OVER
Week 14 Lecture 40 Lecture 41 T-1:Ch 5 T-1:Ch 1 and Ch 4 Role and functioning of NSDL and CDSL Dematerialisation And Electronic Transfer of Securities and NSCCL Role and functioning of Discussion NSDL and CDSL Dematerialisation And Electronic Transfer of Securities and NSCCL PPT, Discussion

Scheme for CA:

Component Quiz,Test,Live Project 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 6/6

Quiz 1

To assess the understanding and knowledge of the students To assess the understanding and knowledge of concepts among students

There will be 25-30 questions from syllabus covered till 5th week. Individual Each question will be carrying 1or 2 marks. Students will be given 30 minutes to solve the quiz. There will be no negative marking. Quiz will be conducted in 1st lecture of 6th week. There will be two different sets of quiz. Students will be given 6 questions of 5 marks each (total marks Individual =30) to be answered in 45 minutes from syllabus covered between 7th -10th week. questions should be memory or concepts based. There will be no negative marking.

Evaluation of quiz submitted by students.

Test 1

Checking of test answer sheets

11 / 11

Quiz,Test,Live Project 3

To make students experts in using the trading platform regarding orders executions and how actual trading houses operate.

Students have to create their DUMMY TRADING ACCOUNTS Group and have to show the proficiency regarding - 1. Entering the trade order, 2. Execution of trade orders, 3. Cancellation, Modification of orders, along-with Students have to gather information on aspects like - Trading platform used, transaction charges, membership fee, date of inception, various trading accounts offered, grievance redressal procedure, how they give sub- broker ship etc. Students will be allotted different brokerage firms to gather this information (or more as a teacher instructs). Students groups will be formed according to class strength.

Evaluation will be done on two aspects - 1. Proficiency on trading platform (15 marks), Broking houses information submitted by students (15 marks)

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