Objectives

To make candidates aware of the nature, composition and instruments of domestic and overseas financial markets

Candidates should be able to compare and contrast the role played by different financial markets while identifying various types of instruments and the principal differences between them.

Course Contents

Module 01 – Financial Markets

• Introduction to financial markets
• Money Market
• Capital Market
• Fixed Income Securities Market
• Foreign Exchange Market

Module 02 – Treasury Management Function

• Introduction
• Objectives of a Treasury
• Structure and Organization of a Treasury Function
• Treasury/Investment Policies, Operational Procedures, Guidelines and Code of Conduct
• Internal and external limits governing Treasury Operations
• Responsibilities/Job Description of a Treasury Manager
• Functions of a Treasury
• Internal Controls of Treasury Function

Module 03 – An Overview of Financial Derivative Markets

• Exchange Trade derivatives vs Over the Counter Derivatives
• Futures Contracts
• Options Contracts
• SWAPS: Interest rate Swaps, Cross Currency Swaps
• Forward Rate Agreements

Module 04 – Asset and Liability Management (ALM)

• Introduction to ALM
• ALM Organization
• Major Risks in ALM
• Treasury’s role in ALM
• Dimensions of Interest Rate Risks affecting ALM
• ALM function from a Practical and Performance Oriented Perspective

Module 05 – Risk Management

• Various Risks pertaining to Treasury Operations
• Various Tools for Measurement of Risks
• Treasury Risk Management
• An overview of Integrated Risk Management System

Module 06 – Regulations and Compliance

• Introduction
• Monetary Policy Related Regulations / Controls of the Central Bank
• FX related Prudential Regulations
• Minimum Capital Requirement under BASEL – III
• Regulations on Minimum Liquidity
• KYC & CDR Rules and Provisions on Money Laundering

Attendance: continuous attendance, either physical or online, will be considered in allowing students to sit for the final examination