We have the BBS 3rd year Finance Syllabus PDF. There are five subjects in the BBS third year. Foundation of Financial Systems, also known as finance, is one of them. Having good marks in finance will make your average look good in the marks sheet.
BBS 3rd year Finance Syllabus PDF
Following are the BBS 3rd year Finance Syllabus PDF.
MGT 226: Foundation of Financial Systems
Full Marks: 100 Pass Marks: 35 Lecture Hours 150
Course Objectives
This course aims to equip students with the operational aspects of the Nepalese financial system. This will develop the theoretical understanding and practical insight on financial instruments, the implications of interest rate and taxes in the supply and demand of funds in the financial markets, depository and non-depository financial institutions, ancillary financial services, operation of primary and secondary markets, regulation and regulatory authorities of the financial syste,m and exchange rate system, foreign reserve and balance of payment.
Unit 1: Introduction LH 15
- Concept of the financial system.
- Components of the financial system with reference to the Nepalese financial system.
- Size of the overall Nepalese financial system; Structure of the Nepalese financial sector.
- Process of funds transfer from surplus units to saving units; Functions and role of financial intermediaries in the financial systems.
Unit 2: Financial Instruments and Interest Rates LH 15
Course of Contents.
- Concept of financial instruments.
- Functions and types of financial instruments.
- money market and capital market instruments, derivative securities, and mutual fund units.
- Financial instruments available in the Nepalese financial system.
- The loanable funds theory of interest.
- Supply and demand of loanable funds, equilibrium interest rate, factors affecting the interest rate; Components of interest rate.
- The term structure of interest rate.
- Determination of interest rate in Nepalese financial markets.
- Base interest rate, interest rate spread, interest rate corridor; Implication of inflation and tax on interest rate.
Unit 3: Depository Financial Institutions LH 20
- Concept of depository institutions.
- Fundamental functions of depository institutions.
- Classification of depository institutions in Nepal.
- Major products of depository institutions.
- Financial statements and major indicators of performance of depository institutions.
- Supervision by Nepal Rastra Bank: On-site and off-site supervision and supervisory tools.
- 60 Saving and credit cooperatives in Nepal: role, structure, and siz,e and monitoring and regulation.
Unit 4: Non-Depository Financial Institutions LH 20
Contents:
- Concept and types of non-depository institutions.
- Risk management industry: types of risk management industry, fundamentals of risk management industry, and role of risk management industry in the mobilization of saving and protection of individual and social wealth.
- Mutual fund industry in Nepal: types, size, and structure.
- Pension funds: Concept, fundamentals of provision for pension; Types and practices of pension fund in Nepal.
- Social welfare funds and other retirement schemes.
Unit 5: Ancillary Financial Services LH 15
Course of content:
- Investment banking industry: concept and functions, the structure of investment banking in Nepal.
- CDS & Clearing Ltd.: role and functions; Depository participants: concept and functions.
- Securities dealer and broker.
- Credit rating agencies: Concept, functions, and credit rating agencies in Nepal.
- Deposit and Credit Guarantee Fund: role and function.
- Credit Information Bureau of Nepal: its products and services.
Unit 6: Primary Market Operations LH 15
- Concept and role of primary markets.
- Legal provision regardingthe issue of stocks and debentures in Nepal.
- Process of initial public offerings; Further public offerings and rights issues.
- Application and allotment process of securities in Nepal.
Unit 7: Secondary Market Operations LH 15
Contents:
- Concept, functions, and role of secondary markets.
- Buying and selling securities in the secondary markets and the settlement of the transactions.
- Stock market Index: NEPSE, float, sensitive index.
- Construction and interpretation of NEPSE Index.
- Market capitalization and market return.
Unit 8: Financial Regulations and Regulatory Authorities LH 20
- Major provisions of relevant Acts: NRB Act, Bank and Financial Institution Act, Foreign Exchange Act, Bank Offensive Act, and Anti-money Laundering Act.
- Insurance Act, and Securities Act.
- Role and power of Nepal Rastra Bank, Insurance Board, Nepal Securities Board as regulatory authorities.
Unit 9: Exchange Rates, Foreign Reserve and Balance of Payment LH 15
- Exchange rate system in Nepal.
- Concept and components of foreign reserves.
- Concept of balance of payments and balance of trade.
- Structure of the balance of payment of Nepal.
- Fund flows as foreign direct investment of multinational companies and international financial institutions in Nepal.
References
– Madura, J. Financial institutions and markets. Delhi: Cengage Learning India Private Limited.
– Khan, M.Y. Indian financial system. Delhi: McGraw-Hill.
– Pathak, B. V. The Indian financial system: Markets, institutions and services. New Delhi: Pearson
Education India.
– Nepal Rastra Bank, Nepal Rastra Bank, Financial Stability Reports.
– Nepal Insurance Board, Annual Report.
– Nepal Rastra Bank Act, 2002.
– Securities Act, 2063.
– Insurance Act, 1992.
Hence, these are the BBS 3rd year Finance Syllabus PDF.
Other Important Links
a. BBS 3rd year all subjects notes: CLICK HERE.
b. BBS 3rd year all subject Syllabus: CLICK HERE.
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