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CBSE class 11 syllabus for Foundations of Financial Markets

CBSE class 11 has issued a notification on syllabus for Foundations of Financial Markets in Financial Marketing Management. The syllabus for session 2016-17 is released and myCBSEguide has done its analysis and presented it in brief. Read all the details carefully to avoid any repetition as well as to get the idea of newly added topics.

In this section you get the information of marking scheme and practical subjects with books recommended by CBSE on it.

Financial Markets

Foundations of Financial Markets

THEORY

Time: 3 Hours Marks: 60

Chapter-1: Investment Basics (10 marks)

Investment.

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.

Equity/Share.

Debt Instrument.

Derivative.

Mutual Fund.

Index.

Depository.

Dematerialization.

Chapter-2: Securities (6 marks)

Securities.

Function of Securities Market.

Types of Securities.

2.1 Regulator.

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Need for Regulators.

Types of Regulators.

SEBI and its role.

2.2 Participants.

Participants in the Securities Market.

Necessity to transact through an intermediary.

Segments of Securities Market.

Chapter-3: Primary Market (6 marks)

Role of the ‘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

issue.

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 ‘Register’ to an issue.

Role of NSE to facilitate IPO.

Prospectus.

Draft Offer document.

Abridged Prospectus.

Role of Merchant Bankers.

Lock-in.

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 (5marks)

4.1 Introduction.

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.

NEAT.

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.

Portfolio.

Diversification.

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.

ISIN.

Custodian.

Dematerialisation.

Dematerialisation of odd lot shares.

Features of dematerialised shares.

Rematerialisation.

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.

Dividend.

Divided yield.

Stock Split.

Reasons for Stock Split.

Buyback of Shares.

8.2 Index.

The Nifty Index.

8.3 Clearing & Settlement and Redressal.

Clearing Corporation.

Rolling Settlement.

Pay-in and Pay-out.

Auction.

Book-closure/Record date.

No-delivery period.

Ex-dividend date.

Ex-date.

Resources available to investor/client for redressing his grievances.

Arbitration.

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 ‘Gross block’, ‘Depreciation’, Net Block’ and ‘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

1.Numeric Speed Accelerator (NSA)

  1. Function Key Accelerator (FKA)
  2. Trading Skill Accelerator (TSA)
  3. Now Simulation Mutual Fund Service System (NSM)

LIST OF EQUIPMENTS AND SOFTWARE

  1. Computers.
  2. Printer.
  3. Software.
  4. Manual for Various Software / Assorted Reference Books.
  5. Demonstration Stand.
  6. Computer Consumable Stationery.
  7. LCD Projector.
  8. NSE – NLT Module.

NOTE: Recommended book is Foundations of Financial Markets, Students Handbook, Class XI, Published by CBSE