•      Process of asset allocation, different approaches to allocation decision, overview of allocation techniques.

•      Selection: Markowitz Risk- Return optimization, concept of utility, Sharpe optimization model, Geometric mean model, Safety First model, Stochastic Dominance Model.

•      Performance measurement: Methods of calculating rate of return, Money weighted rate of return, Time weighted rate of return, Linked internal rate of return, Buying the index approach, Sharpe’s- Treynor’s – Jensen’s performance measure of portfolio

(b)       Membership of a Company: Who can become member, Modes of acquiring membership, Cessation of membership, Rights and Liabilities of Members

(c)        Memorandum of Association and Articles of Association: Meaning, Concept, Clauses, effects of Memorandum and articles, Doctrine of Ultra Vires, Doctrine of Indoor Management, Doctrine of Constructive Notice.

(d)       Prospectus: Meaning (S.2) When to be issued, When not required, Various kinds of prospectus, legal framework for issuance of Prospectus, Contents of Prospectus, Private Placements.

(e)       Classification of Directors, women directors, independent director, small shareholder’s director, disqualification of a director, Director Identification number, appointment, Legal position, powers and duties, Position of director as key managerial personnel, managing director, manager.

(f)         Meetings: Various types of meeting of shareholders and board, convening and conduct of meetings, postal ballot, meetings through video conferencing, e-voting.

(b)       Patents: Meaning, Salient features of Patent Conditions for an invention to be patented, what is Patentable, What is not patentable? Procedure for Obtaining a Patent, Opposition to Grant of Patent (S. 25, 26) Term of Patent, How does a patent expire? Remedies available to the Patent Owner for Infringement of Patent Rights.

(c)        Copyrights: Meaning (S. 14) Copy right Board and registration of Copy right (S. 11, S.44-50) Term of Copy right (S. 22-29) What works are protected, rights, who owns the rights and duration. Meaning of Fair use. Infringement of Copy rights and remedies (S. 51-55,57,58,63,64,65)

(d)       Trademarks: Meaning Concept, functions of Trade mark, Types of Trade Marks, Trademarks that cannot be registered Registration of Trade Mark, Procedure for Registration of TM, Infringement and remedies, passing off, service marks.

(b)       Limited Liability Partnership, 2008: Definitions (S. 2), Body corporate, Business, Partner. Concept, Salient features, Nature of LLP (Ss. 3-10)  Distinction between LLP and partnership, and LLP and LLP and Company Extent and limitation of liability of LLP and its partners (Ss. 26-31) Conversion to LLP (Ss. 55-58)  Winding up and Dissolution of the LLP (Ss. 63-65)

Terms-Recognition of stock exchange-Listing Agreement-Delisting-Security Appellate Tribunal-Cancellation of recognition- bye laws- types of contracts. Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act (SARFAESI) 2002: Objectives-Terms-process-registration-acquisition-assets reconstruction-takeover management-offences and penalties-authorities.

(b)       Security Exchange Board of India:

¨          SEBI: Objectives-terms-establishment-powers-functions-accounts and audit-penalties-registration.

·            Issues of Disclosure Investors Protection Guidelines: Pre and Post obligations-conditions for issue-Debt Security-IPO-E-IPO-Employee option-right-bonus-preferential allotment- intermediary-operational-promoter lock in period requirements-offer document.

Market Participants: Banks and Financial Institutions, Merchants, other customers, speculators and hedgers, Central Bank.

Forex dealers and market makers and brokers, FOREX – trading and SWIFT Robots.

(b)       Foreign Exchange Contracts: Spot and Forward Contracts Cash, Spot trading Trade Date, Settlement PR date Spot trading roll over mechanism. Foreign Exchange Forward contracts, Fixed Maturity Contract, Partially Optional Contract, Fully Optional Contract, Non-Delivery Forward Contracts, Foreign Exchange Futures Contract, Different Dimensions of Foreign Exchange Future, Contract specification trading at National Stock Exchange of India.

Direct Rate, Indirect Rate and Cross Rate.

Arbitrage – Geographical and triangular.

Interest Rate – spot Contracts, forward contracts and SWAP Points.

Risk Management in Foreign Exchange Market – Need and importance of foreign exchange management methods adopted (Spot and forward, arbitrage, cross currency deals, SWAPS, options and futures.

(b)        Risk and Return Analysis in Fixed Income Securities.

(c)        Type of Fixed Income Securities including hybrid instruments.

(b)        Duration and Convexity:

(i)         Duration.

(ii)        Convexity including modified and Maculay Duration.

(c)        Price value of basis points (PVBP).

(d)        Spot Rate.

(e)        Forward rate.

(f)         Bootstrapping.

(b)        The bond traders arsenal of economic indicators:

(i)         Inflation.

(ii)        Monetary policy.

(iii)      Government deficits.

(iv)      Currency valuation.

(c)        The subprime crisis and the role of debt markets in the crisis – Then and now.

(b)        Bond portfolio management strategies:

(i)         What is a bond portfolio strategy.

(ii)        Types of bond management strategy.

(iii)      Active, passive, neutral strategy.

Clearing, settlement and Risk Management: Calendar and Settlement schedule, Position determination, Settlement mechanism, Daily mark to market settlement, Settlement price – Daily settlement price, Final settlement price, Margining – Initial margin, Daily mark to Market margin, Open interest limits, Second line of Defense, NSCCL span. Final Settlement: Cash settlement, Physical settlement (warehousing).

Exception handling: Funds shortages, Delivery shortages.

¨          Disinvestments, FDI and Foreign Portfolio Investment (FPI).

¨          Role of Retail Investors.

¨          Share Price and Share Price Volatility.

¨          Role of SEBI.

¨          Balance Sheet Valuation

¨          Dividend Discount model (Zero growth, constant growth and Multiple growth)

¨          Price earning model

¨          Fundamental Analysis- Economy, Industry and Company Model

¨          Macro Economic Factors.

¨          Market Related Factors.

¨          Stochastic Models.

¨          Brownian Motion.

¨          BETA

¨          Stock Market Quotations.

¨          Procedure for Buying and Selling.

¨          BOLT ‐ On Line Trading/ NEAT System.

¨          Clearing and Settlement.

¨          Order Matching

Emergence of Corporate Finance as an Integral part of Business Finance.

Need for professional approach in managing corporate finance.

Role and Functions of a Corporate Financial Manager.

Requirements of an efficient Corporate Financial Manager.

Owned Capital and Borrowed Capital – Cost of Capital.

Break Even Analysis.

Factors affecting Capital structure – Trading on Equity.

Watered Capital, Over Capitalization and Under Capitalization.

NPV, IRR, DCF Analysis and Payback Period.

Management of New Issues including Pricing of Securities.

Role of Commercial Banks and Investment Banks in Financing the Corporate Sector.

Leasing as Method of Corporate Finance.