Stock Market Basic Module Syllabus

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Stock Market Basic Module Syllabus Instructor Information Instructor Email Office Location & Hours Dheeraj V dheeraj@meghnainternational.

1 Stock Market Basic Module Syllabus Instructor Information Instructor Office Location & Hours Dheeraj V dheeraj@meghnainternational.com Meghana International 40 Hours General Information Description This is a basic level programme for those who wish to either begin a career in the financial markets in India or simply learn the fundamentals of capital markets. The course is structured to help understand the basic concepts relating to different avenues of investment, the primary and the secondary market, the derivatives market and financial statement analysis. Expectations and Goals To get a basic understanding of the products, players and functioning of financial markets, particularly the capital market. To understand the terms and jargons used in the financial newspapers and periodicals. Course Materials 1. INVESTMENT BASICS What is Investment? Why should one invest? When to start Investing? What care should one take while investing? What is meant by Interest? What factors determine interest rates? What are various options available for investment? What are various Short-term financial options available for investment? What are various Long-term financial options available for investment? What is meant by a Stock Exchange? What is an Equity /Share? What is a Debt Instrument? What is a Derivative? What is a Mutual Fund? What is an Index? What is a Depository? What is Dematerialization? 2. SECURITIES What is meant by Securities? What is the function of Securities Market? Which are the securities one can invest in? REGULATOR Why does Securities Market need Regulators? 1

2 Who regulates the Securities Market? What is SEBI and what is its role? PARTICIPANTS Who are the participants in the Securities Market? Is it necessary to transact through an intermediary? What are the segments of Securities Market? 3. PRIMARY MARKET What is the role of the Primary Market? What is meant by Face Value of a share/debenture? What do you mean by the term Premium and Discount in a Security Market? ISSUE OF SHARES Why do companies need to issue shares to the public? What are the different kinds of issues? What is meant by Issue price? What is meant by Market Capitalization? What is the difference between public issue and private placement? What is an Initial Public Offer (IPO)? Who decides the price of an issue? What does price discovery through Book Building Process mean? What is the main difference between offer of shares through book building and offer of shares through? Normal public issue? What is Cut-Off Price? What is the floor price in case of book building? What is a Price Band in a book built IPO? Who decides the Price Band? What is minimum number of days for which a bid should remain open during book building? Can open outcry system be used for book building? Can the individual investor use the book building facility to make an application? How does one know if shares are allotted in an IPO/offer for sale? What is the timeframe for getting refund if shares not allotted? How long does it take to get the shares listed after issue? What is the role of a Registrar to an issue? Does NSE provide any facility for IPO? What is a Prospectus? What does Draft Offer document mean? What is an Abridged Prospectus? Who prepares the Prospectus / Offer Documents? What does one mean by Lock-in? What is meant by Listing of Securities? What is a Listing Agreement? What does Delisting of securities mean? What is SEBI s Role in an Issue? Does it mean that SEBI recommends an issue? Does SEBI tag make one s money safe? FOREIGN CAPITAL ISSUANCE Can companies in India raise foreign currency resources? What is an American Depository Receipt? What is an ADS? What is meant by Global Depository Receipts? 4. SECONDARY MARKET INTRODUCTION What is meant by Secondary market? What is the role of the Secondary Market? What is the difference between the Primary Market and the Secondary Market? Stock Exchange What is the role of a Stock Exchange in buying and selling shares? 2

3 What is Demutualisation of stock exchanges? How is a demutualised exchange different from a mutual exchange? Currently are there any demutualised stock exchanges in India? Stock Trading What is Screen Based Trading? What is NEAT? How to place orders with the broker? How does an investor get access to internet based trading facility? What is a Contract Note? What details are required to be mentioned on the contract note issued by the stock broker? What is the maximum brokerage that a broker can charge? Why should one trade on a recognized stock exchange only for buying/selling shares? How to know if the broker or sub broker is registered? What precautions must one take before investing in the stock markets? What Do s and Don ts should an investor bear in mind when investing in the stock markets? PRODUCTS IN THE SECONDARY MARKETS What are the products dealt in the Secondary Markets? Equity Investment Why should one invest in equities in particular? What has been the average return on Equities in India? Which are the factors that influence the price of a stock? What is meant by the terms Growth Stock / Value Stock? How can one acquire equity shares? What is Bid and Ask price? What is a Portfolio? What is Diversification? What are the advantages of having a diversified portfolio? Debt Investment What is a Debt Instrument? What are the features of debt instruments? What is meant by Interest payable by a debenture or a bond? What are the Segments in the Debt Market in India? Who are the Participants in the Debt Market? Are bonds rated for their credit quality? How can one acquire securities in the debt market? 5. DERIVATIVES What are Types of Derivatives? What is an Option Premium? What is Commodity Exchange? What is meant by Commodity? What is Commodity derivatives market? What is the difference between Commodity and Financial derivatives? 6. DEPOSITORY How is a depository similar to a bank? Which are the depositories in India? What are the benefits of participation in a depository? Who is a Depository Participant (DP)? Does one need to keep any minimum balance of securities in his account with his DP? What is an ISIN? What is a Custodian? How can one convert physical holding into electronic holding i.e. how can one dematerialize securities? Can odd lot shares be dematerialized? Do dematerialized shares have distinctive numbers? Can electronic holdings be converted into Physical certificates? Can one dematerialize his debt instruments, mutual fund units, government securities in his demat account? 3

4 7. MUTUAL FUNDS What is the Regulatory Body for Mutual Funds? What are the benefits of investing in Mutual Funds? What is NAV? Are there any risks involved in investing in Mutual Funds? What are the different types of Mutual funds? What are the different investment plans that Mutual Funds offer? What are the rights that are available to a Mutual Fund holder in India? What is a Fund Offer document? What is Active Fund Management? What is Passive Fund Management? What is an ETF? 8. MISCELLANEOUS CORPORATE ACTIONS What are Corporate Actions? What is meant by Dividend declared by companies? What is meant by Dividend yield? What is a Stock Split? Why do companies announce Stock Split? What is Buyback of Shares? INDEX What is the Nifty index? CLEARING & SETTLEMENT AND REDRESSAL What is a Clearing Corporation? What is Rolling Settlement? What is Pay-in and Pay-out? What is an Auction? What is a Book-closure/Record date? What is a No-delivery period? What is an Ex-dividend date? What is an Ex-date? What recourses are available to investor/client for redressing his grievances? What is Arbitration? What is an Investor Protection Fund? 4

5 Stock Market Intermediary Module Syllabus Instructor Information Instructor Office Location & Hours Dheeraj V dheeraj@meghnainternational.com Meghana International 50 Hours General Information Description Fundamental analysis is a stock valuation methodology arrived at by performing security analysis. An appropriate security analysis forms the basis of successful investment decisions. This module aims at providing a basic insight about fundamental analysis and various valuation methodologies used. Expectations and Goals To have a basic understanding about fundamental analysis. To learn the various valuation methodologies Course Materials CHAPTER 1 FUNDAMENTAL ANALYSIS: AN INTRODUCTION 1.1 What is fundamental analysis? 1.2 Why is fundamental analysis relevant for investing? Efficient Market Hypothesis (EMH) Arguments against EMH So, does fundamental analysis work? 1.3 Steps in Fundamental Analysis CHAPTER 2 BRUSHING UP THE BASICS 2.1 Concept of Time value of Money 2.2 Interest Rates and Discount Factors Opportunity Cost Risk-free Rate Equity Risk Premium The Beta Risk Adjusted Return (Sharpe Ratio) CHAPTER 3 UNDERSTANDING FINANCIAL STATEMENTS 3.1 Where can one find financial statements? The Director s Report The Auditor s Report Financial Statement Balance Sheet Income Statement Schedules and Notes to the Accounts 3.2 Cash Flow Statement 3.3 Financial Statement Analysis and Forensic Accounting 1

6 3.4 Comparative and Common-size Financial Statements 3.5 Financial Ratios 3.6 Du-Pont Analysis 3.7 Cash Conversion Cycle 3.8 The Satyam Case and Need for Forensic Accounting CHAPTER 4 VALUATION METHODOLOGIES 4.1 Top-Down Valuation (EIC Analysis) Economy Industry Company 4.2 Discounted Cash Flow (DCF) Models 4.3 Dividend Discount Model (DDM) 4.4 FCFF and FCFE based DCF 4.5 Sum Of The parts (SOTP) 4.6 Price / Earnings Ratio 4.7 Price / Book Value Ratio 4.8 Enterprise Value / EBITDA Ratio 4.9 Price / Sales Ratio 4.10 Special cases of Valuation IPOs Financial Services firms Net interest margin (NIM) Firms with negative cash flows Acquisition Valuation Distressed Companies 2

7 Stock Market Advanced Module Syllabus Instructor Information Instructor Office Location & Hours Dheeraj V dheeraj@meghnainternational.com Meghana International 40 Hours General Information Description This module has been prepared with a view to provide a comprehensive and in depth knowledge about practical trading using proprietary analysis. It helps is taking both positional and intraday trades. Expectations and Goal To obtain comprehensive knowledge about technical analysis. To understand the basis of technical analysis. To understand the strengths and weaknesses of technical analysis. Course Materials Course Brief: The structure of the markets and their significance for successful intraday trades Unraveling the direction based on the structure and the elasticity the markets exhibit Capturing the boundaries, the violation of which could make or break a market Recognizing a market that trends and differentiating it from a market that doesn t, with anticipated consequences Strategies to be adopted under trends and non-trends Early recognition of reversals and reacting appropriately to them Calculating price objectives under different market structures Locating trades in a manner that suits your risk appetite Advance warning systems that help you recognize opportunities for successful positional trades

8 Tally Syllabus Instructor Information Instructor Office Location & Hours Naresh V naresh@meghnainternational.com Meghana International 40 Hours General Information Description Tally is powerful accounting software, which is driven by a technology called concurrent multi-lingual accelerated technology engine. It is easy to use software and is designed to simply complex day to day activities associated in an enterprise. Tally provides comprehensive solution around accounting principles, inventory and data integrity. Tally also has feature encompassing global business. Tally software comes with easy to use interface thus making it operationally simple. Tally accounting software provides a solution around inventory management, stock management, invoicing, purchase order management, discounting, stock valuation methodology, etc. Tally accounting software also comes with drill down options, which can track every detail of transaction. It helps in maintaining simple classification of accounts, general ledger, accounts receivable and payable, bank reconciliation, etc. The technology employed by tally makes data reliable and secure. Tally software supports all the major types of file transfer protocols. This helps in connecting files across multiple office locations. Tally accounting software is capable of undertaking financial analysis and financial management. It provides information around receivables turnover, cash flow statement, activity consolidation and even branch accounting. Tally accounting software is east to set up and simple to use. A single connection can support multiple users. It can be easily used in conjunction with the Internet making possible to publish global financial reports. Tally accounting software can seamlessly connect with various Microsoft applications. Benefits of Tally Accounting Software Any business owner understands the importance of maintaining proper books of account. This practice ensures that finance for the company is always in order and are correct at all given points of time. Company should always be aware of its financial positions. Earlier, most of the businesses were employing manual practice in maintaining books of account. However, with the advent of modern information technology, this task can be performed by accounting software. Tally is one such allpowerful accounting software. Tally accounting software provides a solution to all the problems real businesses have to encounter. Single software takes care of all tasks required for enterprise management. Accounting task such as records keeping, accounts receivable and payable management and bank reconciliation are made simple through tally. Financial management is also made simpler under Tally software. The software allows management of finances across multiple locations can handle multiple currency transactions, manage cash flow and interest payment. Thus, Tally software is flexible, reliable, secure, easy to use and affordable.

9 Course Materials 1. Beginners Module: Covers the basic details about tally with detailed training on basic of accounts and various facets of installing, setting up an entity and passing basic entries in Tally. 2. Intermediate Module: Extensive training on mastering aspects of passing entries, reconciling banks, cheque printing, cost centers, stock entries and so on using tally software. 3. Advanced Module: Comprehensive training on advanced matters such as Purchase order based accounting, Taxation setup and filing (Income tax and GST) and various other analysis using tally software. Beginners Module Intermediate Module # Particulars # Particulars 1 Basics of accounts 1 Password Controlling 2 Tally Software 2 Access Controlling 3 Setting up new company 3 Voucher Creation 4 Windows of Tally 4 Voucher Control 5 Ledger Creation 5 Feature Enabling Advanced 6 Group Creation 6 GST Set up complete 7 Voucher Basics 7 Transactions Advanced 8 Feature Enabling Basics 8 Stock group and GST 9 GST Set up Basic 9 Sales - Advanced 10 Transactions Basics 10 Purchase- Advanced 11 Stock Enabling 11 Services - billing 12 Sales 12 journal -Various Vouchers 13 Purchase 13 Check Printing 14 Sales Returns 14 Deposit Slips 15 Purchases Returns 15 Payment Advice 16 Journal entries 16 Cash Advanced 17 Banking Set up 17 Display of Day Book Advanced 18 Banking vouchers 18 balance sheet 19 BRS 19 Profit and loss account 20 Cash Voucher 20 Enabling Income and Expenditure account 21 Display of Day Book 21 Stock Summary 22 Ledger Search and Browsing 22 Reference Based Matching 23 Exporting data 24 Back up and related issues Advanced Module # Particulars # Particulars 1 GST Report Generation 6 Bank Statement Importing 2 Stock issues Clearance 7 Outstanding analysis 3 Setting up Purchase orders 8 Check Register tracking 4 Setting up Sales orders 9 TDS Filing 5 Setting up Stock transfer 10 3CD related generations.

NISM-Series-II-A: Registrars to an Issue and Share Transfer Agents -Corporate Certification Examination. Test Objectives

NISM-Series-II-A: Registrars to an Issue and Share Transfer Agents -Corporate Certification Examination Test Objectives Unit 1: Introduction to Securities 3 % 1.1 Describe the broad categorization of securities