Official Course Syllabus: Management of Financial Services
Official curriculum framework prescribed by the University of Calicut under the Four Year Undergraduate Programme (FYUGP) 2024 regulations for the Finance Elective stream. Includes course metadata, pre-requisites, Bloom's Taxonomy course outcomes (CO1–CO4), module-wise lecture hour allocations, open-ended practical projects, and approved university reference textbooks.
Pre-requisites
Understanding of basic financial concepts such as interest rates, compounding, present value, and future value, alongside fundamental knowledge of corporate financial statements.
Course Summary
This course provides an in-depth exploration of financial markets and the crucial role played by intermediaries in facilitating the flow of funds, managing financial transactions, underwriting capital, and structuring modern asset-backed financing.
1. Course Outcomes (CO) & Evaluation Tools
The curriculum is designed under Outcome-Based Education (OBE) principles, mapping each learning outcome to Bloom's Revised Cognitive Levels and specific Knowledge Categories:
| CO | Course Outcome (CO) Statement | Cognitive Level* | Knowledge Category# | Evaluation Tools Used |
|---|---|---|---|---|
| CO1 | Understanding the role and function of financial markets in the macroeconomy. | Understand (U) | Conceptual (C) | Written Examination, Quizzes, Class Assignments |
| CO2 | Analyzing the various types of financial intermediaries and their significance in the financial system. | Analyze (An) | Conceptual (C) | Instructor-Created Exams, Analytical Assignments |
| CO3 | Evaluating the regulatory frameworks governing financial markets and intermediaries. | Evaluate (E) | Conceptual (C) | Term Project, Case Study Presentation, Seminars |
| CO4 | Applying theoretical concepts to real-world financial market scenarios and asset-based financing deals. | Apply (Ap) | Procedural (P) | Practical Case Study Evaluation, Viva Voce |
* Cognitive Levels: Remember (R), Understand (U), Apply (Ap), Analyse (An), Evaluate (E), Create (C). # Knowledge Categories: Factual (F), Conceptual (C), Procedural (P), Metacognitive (M).
2. Detailed Module-Wise Syllabus
Introduction to Financial Services
Detailed Syllabus Topics Prescribed:
- 1.1 Indian Financial System: Structure of financial system; Financial markets (Money Market and Capital Market); Financial institutions (Commercial Banks, DFIs, NBFCs); Financial instruments (Debt, Equity, Hybrids); Financial services; Market intermediaries.
- 1.2 Financial Services Industry: Emergence, historical evolution (Pre-1991 regime, post-1991 liberalization, digital era), and financial innovation (Securitization, AIFs, REITs, InvITs, Green Bonds).
- 1.3 Current Scenario and Challenges: Current landscape and structural challenges in the financial services sector in India (FinTech transformation, India Stack rails, shadow banking contagion, NPAs, and regulatory coordination via FSDC).
Fee Based Financial Services
Detailed Syllabus Topics Prescribed:
- 2.1 Merchant Banking: Functions and strategic role of merchant bankers; Pre-issue and post-issue management workflows; Book-building price discovery; ASBA mechanism; SEBI guidelines on merchant bankers; Merchant banking in India.
- 2.2 Credit Rating: Concept, economic rationale, and investor protection; Process of credit rating (7-step analytical workflow); Credit rating appraisal parameters (Business risk, Financial risk, Governance); Standardized rating symbols (AAA to D); Credit rating agencies in India (CRISIL, ICRA, CARE, Ind-Ra, Infomerics, Acuité); Regulatory lessons from the IL&FS rating failure.
- 2.3 Securitization of Debt / Assets: Parties to a securitization transaction (Originator, Obligors, SPV, Investors, Servicer); Process and mechanism (True sale, bankruptcy-remote trust, credit enhancement); Instruments: Pass-Through Certificates (PTCs) vs Pay-Through structures; Securitization in India under SARFAESI Act, 2002 and RBI Master Directions.
Fund Based Financial Service (Part 1)
Detailed Syllabus Topics Prescribed:
- 3.1 Mutual Funds: Concept, economic rationale, and benefits; Four-tier trust architecture (Sponsor, Trustees, AMC, Custodian/RTA); Historical growth trajectory from UTI monopoly to retail SIP revolution; SEBI product/scheme categorization (Equity, Debt, Hybrid, Solution-Oriented, Index/ETFs); Operational facilities (SIP, STP, SWP, Rupee-cost averaging); NAV mechanics and valuation principles; Portfolio analytics (Sharpe, Treynor, Jensen's Alpha); Regulations regarding mutual funds.
- 3.2 Venture Capital: Scope and economic role; Strategic triangle (LPs, GP, Startups); Stages of venture capital financing (Seed, Startup Series A, Expansion Series B/C, Bridge/Pre-IPO); Angel investors vs VCs; Valuation methodologies (VC Method, Scorecard, Berkus); Term sheets and anti-dilution formulas; Exit routes; Guidelines for venture capital companies in India (SEBI AIF Regulations 2012, Category I).
Fund Based Financial Service (Part 2)
Detailed Syllabus Topics Prescribed:
- 4.1 Receivables Financing: Factoring mechanism and 6-stage workflow; Core functions; Typology of factoring (Recourse vs Non-recourse, Advance vs Maturity, Disclosed vs Undisclosed, Domestic vs Cross-border); Factoring in India, Factoring Regulation Amendment Act 2021, and the TReDS institutional reverse-factoring architecture; Forfaiting of export bills, Avalization, and non-recourse terms; Bill discounting; Comparative matrix.
- 4.2 Equipment Leasing: Concept and economic separation of ownership and use; Types of lease (Financial lease, Operating lease, Leveraged lease, Sale and leaseback); Financial evaluation models: Net Advantage to Leasing (NAL); Regulatory framework of leasing in India (Theory only), Ind AS 116 lease accounting (Right-of-Use Asset and Lease Liability), and Section 32 tax depreciation rules.
- 4.3 Hire Purchase Financing: Concept and legal framework (Contract of Bailment, Sale of Goods Act, Motor Vehicles Act RC endorsement); Flat rate vs Effective APR interest calculation and Rule of 78; Repossession rights and judicial consumer safeguards; Exhaustive difference between leasing and hire purchase.
Open-Ended Module: Advanced Topics & Contemporary Practice
Curricular project work, empirical institutional audits, and research seminars exploring emerging topics in Indian financial services:
- Empirical case analysis of a recent Initial Public Offering (IPO) examining the book-building price discovery, subscription multiples across QIB/HNI/Retail tiers, and listing day performance.
- Comparative analysis of risk-adjusted performance across selected large-cap, mid-cap, and hybrid mutual fund schemes using Sharpe and Treynor ratios.
- Study on the operational adoption of the TReDS platform among MSMEs in Kerala and its impact on working capital liquidity cycles.
- Financial appraisal comparing leasing versus borrow-to-buy financing for an industrial equipment acquisition using the Net Advantage to Leasing (NAL) framework.
3. Prescribed Textbooks & Authoritative References
Students are advised to consult the following approved reference works prescribed by the Board of Studies in Commerce, University of Calicut:
Financial Institutions and Markets
Meir Kohn • Tata McGraw Hill
Comprehensive international perspective on financial intermediation, market structures, and risk transformation.
Financial Institutions and Markets
L. M. Bhole • Tata McGraw Hill
The classic Indian textbook covering monetary policy, banking institutions, and domestic capital markets.
The Indian Financial System
Vasantha Desai • Himalaya Publishing House
Exhaustive structural coverage of development banks, non-banking financial companies, and credit delivery mechanisms.
Indian Financial System
H. R. Machiraju • Vikas Publishing House
Detailed institutional mechanics of merchant banking, issue underwriting, and capital market operations.
Indian Financial System
M. Y. Khan • Tata McGraw Hill
Authoritative reference for equipment leasing, hire purchase, factoring, and mutual fund valuation models.
Indian Financial System
P. M. Varshney & D. K. Mittal • Sultan Chand & Sons
Focuses on regulatory frameworks, money market instruments, and central banking supervision in India.
Financial Markets & Services
E. Gordon & K. Natarajan • Himalaya Publishing House
Popular student text covering credit rating agencies, venture capital term sheets, and stock exchange trading.
Indian Financial System
Bharati V. Pathak • Pearson Education
Modern textbook analyzing SEBI regulations, derivatives markets, depository systems, and financial market digitalization.
Ready to start learning?
Proceed to Module 1 notes or view all syllabus topics.