MFS CHRIST UNIVERSITY

TERMS TO LEARN DEBT MARKET:

1. STRUCTURE, CHARACTERISTICS & PURPOSE OF INDIAN FINANCIAL SYSTEM
(FINANCIAL MARKETS, FINANCIAL ASSETS / INSTRUMENTS, FINANCIAL
INSTITUTIONS/INTERMEDIARIES)
2. CREDIT CREATION (allocative efficiency & productive ventures)
3. CREDIT DEPOSIT RATIO (banks unable to meet credit requirement from deposits
they mobilize)
4. CAPITAL MARKET DESIGN (DEBT & EQUITY MARKETS)
5. SHORT TERM & LONG TERM FUNDS (Money Market & Bond Market)
6. MONEY MARKET DESIGN, PURPOSE, INSTRUMENTS & PARTICIPANTS
7. CALL, NOTICE & TERM MONEY MARKET, CASH MANAGEMENT BILLS , T-BILLS & STATE
DEVELOPMENT LOANS (SDLs), CDs & CPs, CBLO INSTRUMENT, LAF REPO & REVERSE
REPO
8. BONDS WITH CALL / PUT OPTION
9. OIL & FERTILIZER BONDS (SPECIAL SECURITIES)
10. PRIMARY DEALERS CONSTITUTION & ROLE
11. GOVERNMENT SECURITIES MARKET (DATED SECURITIES) DESIGN
12. AUCTIONS (DUTCH & FRENCH AUCTION)
13. YIELD BASED AUCTION / PRICE BASED AUCTION
14. NDS (negotiated dealing system)
15. OMOs (open market operations)
16. YIELD TO MATURITY (YTM)
17. DIRTY PRICE vs CLEAN PRICE
18. RISKS IN DEBT MARKET (Interest Rate, Credit, Reinvestment, Inflation, Liquidity &
Rating risks)
19. DvP (delivery v/s payment)
20. SHUT PERIOD (books closed one day before the settlement)
21. STP (STRAIGHT THRU PROCESSING)
22. MSF (ITS UTILITY TO BANKS)
23. NON COMPETITIVE BIDS or RETAIL PARTICIPATION / COMPETITIVE BIDS
24. WHEN ISSUED CONCEPT
25. DIFFERENTIATE BETWEEN CALL MONEY & REPO BORROWING (answer: Call Money is
inter-bank borrowing while repo is borrowing from RBI; elaborate your descriptive
answer based this concept)
BROADER LEARNING TERMS (self-learning)
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G-SEC MARKET DESIGN

CORPORATE DEBT MARKET IN INDIA
MONETARY POLICY INDIA (WHY FREQUENT POLICY ANNOUNCEMENTS)
FINANCIAL INCLUSION
CHALLENGES INDIAN ECONOMY
ROLE OF RBI
UNIFIED REGULATOR / FSLRC / FINANCIAL SECTOR REFORMS
ROLE OF CCIL AS A CLEARING AGENCY (ALSO THE ROLE OF CLEARCORP DEALING
SYSTEM IN THE CBLO SEGMENT)
9. STUDY ABOUT INFLATION & ITS EFFECTS ON THE ECONOMY
10. URJIT PATEL COMMITTEES RECOMMENDATIONS

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REAL-TIME REFERENCES:
REFERING & STUDYING DAILY BUSINESS NEWSPAPERS ON DEBT INSTRUMENT TRADES
& PARTICIPATION
VIEWING & MAKING NOTES OF EARLIER MONETARY POLICY ANNOUNCEMENT BY
VARIOUS RBI GOVERNORS
VIEWING & MAKING NOTES OF CHALLENGES FACED BY INDIAN ECONOMY
LIMITATIONS OF CORPORATE BOND MARKET RESEARCHING ON WHY PRIVATE
COMPANIES WITHOUT COLLATERAL CANNOT RAISE DEBT FUNDS