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Study Notes • COM1MN105

Basics of Financial Markets

COM1MN105 - Basics of Financial Markets study notes and resources. Browse module-wise notes, preview available PDF resources, and use the related links on this page to move between nearby subjects and study guides.

Chapter Wise Notes

About This Subject

Basics of Financial Markets (Course Code: COM1MN105) is a finance minor in B.Com Semester 1 at Calicut University under FYUGP 2026. This course examines the institutional architecture, instruments, and regulatory mechanisms governing money markets and capital markets in India. Students explore the functions of commercial banks, the Reserve Bank of India (RBI), non-banking financial companies (NBFCs), primary issuance markets, secondary stock exchanges, debt markets, derivative instruments overview, and regulatory oversight by RBI and SEBI.

Key Topics Covered

  • Structure of the Indian Financial System: financial markets, institutions, instruments, and services
  • Money market vs. Capital market: maturity horizons, liquidity, risk, and participant profiles
  • Money market instruments: Treasury Bills, Commercial Paper, Certificates of Deposit, Call Money, and Repos
  • Capital market structure: Government securities (G-Sec) market, corporate bond market, and equity market
  • Primary market mechanisms: IPO, FPO, Rights Issue, Private Placement, and Qualified Institutional Placement (QIP)
  • Secondary market infrastructure: stock exchanges (BSE, NSE), brokers, trading platforms, and clearing corporations
  • Role of regulatory bodies: Reserve Bank of India (RBI monetary policy) and SEBI market surveillance
  • Financial market modernization: electronic trading, screen-based transactions, and Demat integration

Learning Outcomes

  • Understand the components, institutions, and economic role of the Indian financial architecture.
  • Compare short-term money market instruments and long-term capital market securities.
  • Explain the primary market issuance methods for corporate capital mobilization.
  • Analyze the operational workflow of secondary equity trading and trade settlements.
  • Evaluate the regulatory mandates of the Reserve Bank of India and SEBI in market stabilization.

Exam Preparation Tips

In Part B, contrast Money Market with Capital Market across 6 distinct parameters (instruments, maturity, risk, regulation). For Part C, prepare comprehensive essays on money market instruments (T-Bills, CP, CD) and the organizational role of SEBI in investor protection.

Frequently Asked Questions

What is Basics of Financial Markets about?

It covers the Indian financial system, money market instruments (T-Bills, CP), capital markets, IPOs, stock exchanges, and RBI/SEBI roles.

Which semester includes COM1MN105?

It is a minor subject in B.Com Semester 1 under Calicut University FYUGP 2026.

Where can I find notes for Basics of Financial Markets?

Module lecture summaries and downloadable PDF study guides are available on DegreeLive.

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