SPOM SET C: Financial Services & Forex
CA Final SPOM SET C: Financial Services and Capital Markets (100 marks)
Contents:
1. Introduction to Financial Markets — Role in Economic Development, Stakeholders, Indian Financial Market scenario
2. Impact of various Policies — Credit Policy of RBI, Fed Policy, Cost Inflation Index, CPI, WPI
3. Capital Market – Primary — Basics, Segments, Instruments; Aspects of Primary Market: Book Building, ASBA, Green Shoe Option, Anchor Investors, Private Placement, Right Issue, Exit Offers
4. Capital Market – Secondary — Stock Market Organization, Demutualization, Algorithmic Trading, Basket Trading, Circuit Breakers, NSCCL, Margin Trading, Demat Account
5. Money Market — Basics, Participants, Money Market Instruments, CRR, SLR, MIBOR, LIBOR, G-Sec, Repo and Reverse Repo
6. Bond Market — Primary vs Secondary Bond Market, Types, Strategies, Bond Indices
7. Derivative Market — Forward, Futures, Options, Swaps; Concept of Derivatives
8. Institutions and Intermediaries — Depository, Merchant Bankers, Registrars, Underwriters, Debenture Trustees, Portfolio Managers, Stockbrokers
9. Commodity Market — Role, India Commodity Market (including warehousing and physical settlement), Application of Derivatives, Global Commodity Exchanges
10. Mutual Funds — Types, NAV, ETFs, REITs, InvITs, Side Pocketing and Tracking Error
11. Private Equity — Venture Capital, Buyouts, Hurdle Rate, Private Equity Funds, Contemporary Issues
12. Investment Banking — Concept, Functions, Challenges, Merchant Banking and Issue Management
13. Credit Rating — CAMEL Model, Credit Rating Agencies in India, Limitations, US Sub-prime crisis
14. Leasing — Types, Financial evaluation of lease proposals (Lessee and Lessor perspective), BELR, Cross Border Leasing
15. Factoring — Types/Forms, Functions, Benefits, Forfaiting vs Export Factoring
16. SEBI Regulations — Compliances in Capital Markets
CA Final SPOM SET C: Forex and Treasury Management (100 marks)
Objective: Gain knowledge in the field of Forex and Treasury Management, deal with its complexities, and apply it in practical situations.
Contents:
1. Organizational Structure of Treasury — Introduction, Evolution and Objectives, Organization Structure (Front, Back & Mid Office), Functions of Treasury Department, Role of Treasury (Raising Capital, Bank Relationships, Forex Management, Liquidity and Risk Management), Responsibilities of Treasurer, Integrated Treasury Management
2. Process of Treasury — Systems and Techniques, Treasury Policy, Delegation with Accountability (Open Position Limits: Daylight/Overnight/Intraday, Stop Loss Limits), Control and Reporting, Dealing Room Operations, Float/Availability/Swaps, Lockboxes, Clearing Houses, Payment & Settlement Systems (CCIL, RTGS, NEFT, SWIFT)
3. Types of Treasuries — Manufacturing/Service Corporates (Contribution Analysis, Forex/Commodity/Credit Exposures, Debt Restructurings); Banking Treasury (Capital Adequacy, Credit/FX/Interest Rate Risks, Securitization, Asset Liability Management); Special Reference: Insurance Companies, Mutual Funds, Chit Funds, Housing Finance, NBFCs, Government, Reserve Bank of India
4. Treasury – Domestic — Classification of Treasury Market (Domestic/National vs Forex/International)
5. Treasury – Forex:
- Foreign Exchange Markets: Types, Highly Traded Markets, Cross Border Currency Flows, Role of Banks, Convertibility and BOP
- Forex Concepts: Exchange Rate Quotes, Factors affecting Exchange Rates, Spot and Cross Rates, Forward Rates, Premium and Discount, Forward Contracts (Booking, Extension, Cancellation)
- International Treasury: Market Participants, Forex Treasury Products, Currency Volatility, Global Securities Portfolio
- Derivative Markets: Futures, Options, Swaps; Price Calculation; Trends in Futures; Short Term Interest Rate Futures
- Interest Rate Derivatives: Hedging
