IBS Hyderabad (Academic Year – 2021-23)

Course Handout
Program : MBA
Course Code : SHF1441
Course Title : Investment Banking Semester: III
Faculty Name : Room No:
Consultation Hours (Day/time):
Mobile No : Email:

MBA Programme Outcomes

PO Number IBS - Programme Outcome (MBA)
1 Critical Thinking
2 Effective Communication
3 Social Interaction
4 Effective Citizenship
5 Ethics
6 Environment & Sustainability
7 Self-Directed & Life-Long Learning
8 Initiative/Leadership
9 Employability
10 Teamwork
11 Cross Functional Perspectives
12 Mastery in Analytics

Course Description:
Investment Banking, over the years has transformed itself from merely offering fee based capital
raising advisory services to encompass the entire gamut of advisory to execution of strategic investing
and financing activities of a business. This course delves into the structure, management, and
practices of Investment Banking (IB), covering some of the significant activities like fund raising,
valuations, mergers and acquisitions, and management of financial investments. It also looks into the
business practices of Private Equity, Hedge Funds, and Venture Capital firms. This course highlights
the significant role of the Investment Bankers through case-discussions, and project works. As part
of this course, issues related to raising finance in emerging markets and startups, the pros and cons
of debt and equity finance, and the emergence of structured finance will be discussed.

Course Objectives:
The following are the objectives of the course.
• To introduce the profession of Investment Banking with its prominent verticals of services
• To develop the skill of valuing firms, with some popular tools of corporate valuation.
• To sensitise to the pros and cons of equity, debt, hybrids and structure financing.
• To provide a fair understanding on the Mergers and Acquisitions Process.
• To create exposure to some significant related topics like Leverage Buyout, Venture Capital,
and Angel Finance.
• To provide an experience of valuing and negotiating an M&A deal through Simulation
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 IBS Hyderabad (Academic Year – 2021-23)

Course Learning Outcomes:

After the course, the students will be able to develop the following skills and comprehension
CLO-1 – Comprehend the role of investment bankers in financial sector
CLO-2 – Apply the various tools and techniques of corporate valuation
CLO-3 – Analyse the alternatives related to long-term sources of finance for a firm
CLO-4 – Critically evaluate the rationale behind Mergers and Acquisition and other Corporate
Restructuring Processes.
CLO-5 – Estimate the range of values of cash or share compensations in Mergers and Acquisitions,
and level of debt in leverage buyouts.
CLO-6 - Differentiate between various popular financing avenues for startups

Mapping Course Learning Outcomes:

Course Learning Mapped Mapped Pedagogy Mapped Assessment
Outcomes Programme Outcomes
CLO-1 PO1, PO2, PO5, PO9 Lecture, Numerical MCQ Quiz, Mid Term,
Exercises, Case End Term, Case
Method Analysis
CLO-2 PO1, PO7, PO9, PO11, PO12 Lecture, Numerical MCQ Quiz, Mid Term,
Exercises, Case End Term, Case
Method, Project Work Analysis, Project Work
CLO-3 PO1, PO5, PO9, PO12 Lecture, Numerical MCQ Quiz, Mid Term,
Exercises, Case End Term, Case
Method Analysis
CLO-4 PO1, PO5, PO9, PO11 Lecture, Numerical MCQ Quiz, Mid Term,
Exercises, Case End Term, Case
Method Analysis
CLO-5 PO1, PO2, PO7, PO9, PO10, Lecture, Numerical MCQ Quiz, Mid Term,
PO11, PO12 Exercises, Project End Term,
Work
CLO-6 PO1, PO2, PO7, PO9, PO10,
PO11

Recommended Text Book:

Investment Banking: Concept, Analysis and Cases, Pratap Giri Subrahmanyam, 3rd Edition, 2017,
McGraw Hill Education Pvt. Ltd.
Note: The topics in course outline are mapped to respective chapters in the Recommended Text
Book

Suggested reference books:

Damodaran on Valuation: Security Analysis for Investment and Corporate Finance, Aswath
Damodaran, 2nd Edition, Wiley Publishers
Investment Banking Explained: An Insider’s Guide to Industry, Michel Fleuiret, 1st Edition, McGraw
Hill Education Pvt. Ltd.,
Investment Banking: Valuation, Leveraged Buyouts, and Mergers and Acquisitions, 2nd Edition
(2013) by Joshua Pearl, Joshua Rosenbaum, Wiley Publishers

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 IBS Hyderabad (Academic Year – 2021-23)

Simulation:
Financial Simulation M&A in Wine Country V2: 4805-HTM-ENG; Publication Date, Aug 2013, Harvard
Business Publication Simulation by Timothy Luerhman, W Carl Kester

Digital Resources:
A] Academic Content/NPTEL/SWAYAM Videos:
S. Topic NPTEL/MHRD Projects Links Professor/Speaker
No. & Institution
1. Introduction https://www.youtube.com/watch?v=ope5Y3Mrsa Prof. Jitendra
to Investment w Mahakud, IIT
Management Kharagpur
2. Valuation https://www.youtube.com/watch?v=c20_S-QgvsA Prof. Aswath
https://www.youtube.com/watch?v=znmQ7oMiQr Damodaran, NYU
M Stern School of
https://www.youtube.com/watch?v=xV80dt1OZtQ Business
https://www.youtube.com/watch?v=8vYQpWXQ5
hE

3. Equity https://www.youtube.com/watch?v=bp76hNEIjAs Prof. Jitendra

Financing https://www.youtube.com/watch?v=yWIeTQfyZHE Mahakud, IIT
Kharagpur
Prof. C.S. Mishra, IIT
Kharagpur
4. Debt Financing https://www.youtube.com/watch?v=WGYxgESek0 Dr. Bharathi Sud,
0 University of Delhi,
Vidya Mitra,
5. Mergers & https://www.youtube.com/watch?v=GaPeH1YchAg Prof. Ashish Pandey
Acquisitions https://www.youtube.com/watch?v=DQVpD9Lpg8 SJ Mehta, IIT
8 Bombay

B] Insights from Industry:

S. Topic Video Links from the Web Speaker/Event/
No. Organisation
1. Investment https://www.pbs.org/wgbh/frontline/film/meltdow Frontline Video
Banking n/
https://www.youtube.com/watch?v=bx_LWm6_6tA
2. Private Nick’s Notebook,
https://www.youtube.com/watch?v=44zUkC1xVC0
Placement Outsider Club
3. Family https://www.youtube.com/watch?v=suL-HkP-2Ts Vikram Bhalla, Ted
Business Institute
4. Structured Guggenheim
https://www.youtube.com/watch?v=6Y3n4AKYr48
Finance Partners
5. Merges and https://www.youtube.com/watch?v=30MnAxwDMJ Vineet Patwari, CEO
Acquisitions k Elearnmarkets.com
https://www.youtube.com/watch?v=axonFO5Vb2I Merit Harbour
https://www.youtube.com/watch?v=sQ6xACl8hJk Capital Ashbridge,
Europe
6. Debt David Haber, CEO
https://www.youtube.com/watch?v=cg9RgzYzrK8
Financing Bond Street

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 IBS Hyderabad (Academic Year – 2021-23)

S. Topic Video Links from the Web Speaker/Event/

No. Organisation
7. Leveraged https://www.bloomberg.com/news/videos/20 Bloomberg
Buyout 21-08-18/investec-india-piyush-gupta-on-
leverage-buyouts-in-india-video

https://www.livemint.com/companies/news/ Live Mint

pes-may-be-new-promoters-as-buyout-deals-
set-to-define-the-decade-
11583348324649.html
8. Hedge Funds https://www.pwc.com/us/en/industries/priva Private Equity
and te-equity/library/deals-insights.html
Private Equity
https://www.ey.com/en_us/private-equity Earnst and Young

https://www.youtube.com/watch?v=tbRkdm8 365 Careers

0cFs
https://www.youtube.com/watch?v=r4roG2fc 365 Careers
PXE
9. Emerging https://www.youtube.com/watch?v=_iepDwL Carollyn Campbell,
Markets JUwo Managing Director,
Emerging Capital
Partners

C] Web based Data Resources and Infrastructure:

S. No. Resource Web-Link
1. Stock Prices from NSE and BSE www.nseindia.com
www.bseindia.com

2. CMIE’S Prowess www.prowessiq.com

Digital Tools:
Software: MS Office, especially MS-Excel

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 IBS Hyderabad (Academic Year – 2021-23)

Session Wise Plan:

Session
Topic Learning Outcomes Case/Note/Article Chapters
No.
 Appreciating the Genesis and
Introduction
Evolution of Investment Banking Note on History of
to
 Differentiating Investment and Investment Banking (9-902-
01-02 Investment Chapter 5
Merchant Banking 168) Publication Date: Jan,
Banking
 Comprehending various activities 2002
of Investment Bankers
An Introduction to Cash-flow
 Differentiating Price and Value
Valuation Methods (9-295-
 Comprehending the fundamental
155) Publication Date: May,
principles of various methods of
1995
valuation
 Ability to apply the suitable
Dixon Corporation: The
Corporate technique of corporate valuation
03-05 Collinsville Plant (9-201-097) Chapter 7
Valuation  Reconcile to the limitations of
Publication Date: Jun, 1998
valuation
 Appreciate the significance of Mercury Athletic: Valuing the
Strategy and Unknowns in Opportunity (4050)
Valuation Publication Date: September,
2009
Valuing a Business
Acquisition Opportunity (9-
289-039) Publication Date:
Jan, 1989
 Differentiating between Merger,
Acquisition, & Takeover
Mergers & Acquisition of Consolidated Chapter
06-09  Appreciate & Identify the sources
Acquisitions Rail Corp. (A) (9-298-006) 15
of Synergy
Publication Date: Apr, 1998
 Choose Payment Mode in M&A
Acquisition of Consolidated
Rail Corp. (B) (9-298-095):
Publication Date: Apr, 1998
United Parcel Service’s IPO
(103015- PDF-ENG)
Publication Date: Oct, 2002
 Appreciating the pros and cons of
Auctioning Morningstar (9-
equity financing
206-023) Publication Date:
 Understanding the determinants
Feb, 2006
Equity of equity financing Chapter
10-11 Linknedin Corporation
Financing  Appreciating the regulatory 8
(112006-PDF-ENG)
environment for raising equity
Publication Date: Oct, 2011
funds
Pharmacyclics: Financing
 Understanding the IPO process
Research and Development
(9-201-056) Publication Date:
Jul, 2003

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 IBS Hyderabad (Academic Year – 2021-23)

Session
Topic Learning Outcomes Case/Note/Article Chapters
No.
12 TEST -1 – NCP -1
13 Financial Simulation M&A in Wine Country V2: 4805-HTM-ENG; Publication Date, Aug 2013, Harvard
Business Publication Simulation by Timothy Luerhman, W Carl Kester
 Appreciating the pros and cons of
debt financing
 Understanding the determinants Philip Morris Companies, Inc.
Debt Chapter
14-15 of debt financing (B) (9-292-006) Publication
Financing 8
 Appreciating the regulatory Date: Aug, 1991
environment for raising debt
funds
 Understanding activities of
Valuation in Private Equity
Private Private Equity Chapter
16-17 Settings (9-297-050)
Equity  Differentiating between Venture 12
Publication Date: Mar, 2011
Capital and Private Equity
Ducati & Texas Pacific Group
A wild ride Leveraged Buyout
(9-801-359) Publication Date:
 Understanding LBO process Feb, 2001
Leveraged  Appreciating the rationale behind Chapter
18-19
Buyout LBO transaction Technical Note on LBO 16
 Valuation in case of an LBO Valuation (A): LBO Structure
and Target IRR Method of
Valuation (9-902-004)
Publication Date: Jul, 2001
Structured  Appreciating the need for
financing Structured Financing Bear Stearns and the seeds of
 Identifying the applicability of its demise (UV1064-PDF-
20-21
Structured Financing ENG) Publication Date: Oct,
 Gaining acquaintance of popular 2008; Revised 2019.
products
Capital  Appreciating the issues related
Mezanine Money for Smaller
raising for financing startups and MSMEs Chapter 8
22-23 Businesses (HBR 87313)
startups and  Identifying various sources of and 12
Publication Date 1987
MSMEs financing

24 TEST – 2 NCP-2

Credit Rating  To understand Credit rating

25-26
process

Venture  Differentiating Venture Capital

Capital and and Angel Financing Note on Angel Financing (9-
Chapter
27-28 angel  Appreciating the business stages 298-083) Publication Date:
12
financing where these sources are Jan, 1998
available

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Session Topic
Learning Outcomes Case/Note/Article Chapters
No.
 Understanding Hedge Funds
The Hedge Fund Industry
 Comprehending the various
29-30 Hedge Funds (9-208-126) Publication Date:
investment strategies adopted by
Apr, 2010
them
Mezanine Money for Smaller
 Appreciating the opportunities
Businesses (HBR 87313)
provided by emerging markets to
Financing in Publication Date 1987
raise finance Chapter
31 Emerging
 Getting acquainted with the 10
Markets Sun Brewing (A) (207022-
instruments and market access to
PDF-ENG) Publication Date:
equity and debt finance
Jun, 2010
32-33 Project Presentations

Local/National/International Perspective: (Atleast 1 if relevant to the nature of course)

Sessio Mapped Topic in

Article/Case/Minor Project Pedagogical Tool
n No. Session Wise Plan
The Text Book cases have National
All All Examples and the Harvard Cases lined Case Methodology
up have International Perspectives

SDG and ESG Sensitisation: (Atleast 1 if relevant to the nature of course)

Sessio Mapped Topic in

Article/Case/Minor Project Pedagogical Tool
n No. Session Wise Plan
How VCs can help Startups set
14-15 Private Equity Article Discussion
(meet) ESG goals
Recent Ethical Issues in Investment
1 Investment Banking Banking: John N Reynolds with Article Discussion
Edmund Newell

Data Based Insight:

The trends in M&As or IPOs in India during the last 2 decades. A Visualisation approach based on data
from Prowess IQ.

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 IBS Hyderabad (Academic Year – 2021-23)

Evaluation Timelines and Schema:

Keeping in line with continuous evaluation at IBS the following evaluation schedule has been drawn.
Students are expected to go through the dates / sessions mentioned and prepare accordingly.

Component Component Expected slot / Marks Weightage

number due date declaration by
Test I 1 12th session 13th session 10
Simulation 3 13th session 14th session 15
Test II 2 24th session 25th session 10
Project report 4 31-33 session 33rd session 15
Class Participation 5 33rd session 33rd session 10
End exam At the end of Exams dept Exams dept 40
the semester shall plan and shall plan and
communicate communicate
Total 100

Other Specific Instructions:

a. Expectations from Students
a. Students are expected to be punctual to classes and maintain 100% attendance. In any
case, they need to maintain a minimum of required attendance as per norms of IBS,
Hyderabad.
b. Reading the respective chapter before attending the class is highly advisable, however
a reasonable degree of honest participation in the class would bring in the required
learning.
c. They are expected to appreciate that, evaluation components require both individual
and group level involvement. Students should consider group formation as a
professional activity.

b. Use and adoption of software tools:

A management professional requires thorough understanding of domain specific
fundamental formulae and relationship between variables to effectively model it using a
software tool. This facilitates visual reporting to generate insights for decision-making.
Investment Banking course requires thorough financial modelling experience to utilize the
skills in Valuation and Mergers and Acquisition and also in LBO valuations.

c. Plagiarism policy:
Any infringement of copyright/patent/trademark is not appreciated and shall be viewed
seriously. The students are suggested to take proper help/support from the faculty members
in this regard. So that they don’t get into this infringement aspect knowingly/unknowingly.

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 IBS Hyderabad (Academic Year – 2021-23)

Project Report/Term Paper Description and Guidelines:

Each group of students needs to prepare a report and need to give a presentation. The report would
carry 40% weightage and the presentation would carry 60% weightage. The number of slides should
not be more than the number of questions answered, with a leeway for another 5 slides for showing
any data. The report should definitely find answers to a set of given questions be evaluated. The
students are free to choose any sources from the web and have to include it as part of the references
for the project to avoid plagiarism based rejection.

The following are the set of questions, which need to be answered. They form the minimum
information in the project. While students can add their ingenuity to add any other relevant matter.

a. What motivated the group to choose the problem? (1 paragraph, 150 words)
b. What sources of information did they consider? (Listing as references)
c. What is the specific issue or problem that is identified? (1 to 3 paragraphs, of 150 words each)
d. Who are the relevant stakeholders and how are they affected due to the problem? (5 lines
for each stakeholder)
e. What is the data based evidence to support the existence of the problem? (Max 5 Graphs or
Tables)
f. Where was the problem significantly highlighted, media, industry association, investor,
government, taxation authorities, etc.? (1 paragraph of max 150 words)
g. What was the solution that emerged? (1 paragraph with around 200 words)
h. What are the relevant regulations/laws, and did the solution require any regulatory change
or intervention? (3 paragraphs of around 150 lines each)
i. Which of the stakeholders played a significant role in providing the solution, and what was
their interest? (5 lines for each stakeholder)
j. What were the news items, which debated the solution’s efficacy, issues, pros and cons,
sustainability? ( 1 to 2 paragraphs of 150 lines each)
k. What is the post solution scenario? (Either data based or news based write up of 1 paragraph
of around 200 words.

The List of indicative topics that could be chosen from.

1. Blockchain as a Solution to Cyber Threats in Investment Banking Industry

2. Basel III norms for Investment Bankers
3. Cross Selling as a strategy to survive in Investment Banking Industry
4. COVID-19 Impact on Investment Banking
5. Cybersecurity and Investment Banking-Work-From-Home
6. Talent Retention and Acquisition in Investment Banking
7. Technology disrupting the Investment Banks
8. The decline on ROE of Investment Banks and ways to mitigate
9. Challenges of Investment Banking in India

**** End of Investment Banking *****************

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 ICFAI BUSINESS SCHOOL, IFHE, HYDERABAD
MBA SEMESTER–III
Course Handout (AY 2022 – 2023)

Course Global Capital Markets Total Credits 3

Name of the Faculty Member Dr. D Satish Room No F002
Email Id [email protected] Mobile No 9849322745
Consultation Hours TUESDAY 4.45 – 5.15 pm (SEC A) and 5.15 pm – 5.45 pm (SEC B)

Course Description
In the present investment world, the global markets are more integrated than ever. Understanding the workings and the dynamics of the global capital market is now
essential for any finance executive. The course would enhance the conceptual knowledge of the student with respect to understanding the global markets, classification
based on different asset classes and the various intermediaries, and innovative products. The course would enhance the critical thinking of the students with respect to
developing investment strategies that would not only achieve their set objectives but also enable to become leaders in global investments. The course requires the students
to complete a comprehensive project that would enhance their report writing skills as well as present the global perspective in a confident manner. The major topics
include global financial markets, financial innovations, financial intermediaries, the world of alternate investments and the major global crises.

Course Objectives The course is designed to…….

1) Giving a perspective to the students on the evolution of capital markets in different parts of the world and the subsequent integration through globalization
2) Discuss the asset-based segmentation as well as geographical segmentation of capital markets
3) Provide an overview of financial innovations in the capital markets as well as covers some of the major crises and the response of the regulators as well as the
governments
4) Provide an overview about alternative investing strategies

Learning Outcomes At the end of the programme the student shall be able to …………………..
1) Understand and improve conceptual understanding of the evolution, classification and workings of global capital markets (Equity, Debt, Commodity, etc…).

2) Critically analyze the role of instruments, issuers, investors, intermediaries and regulators in the growth and development of capital markets
3) Come out with comprehensive and innovative solutions to the issues facing the global capital markets through financial engineering or innovation

4) Help in formulating leading investment strategies that achieve their set objectives
5) Build a much mature understanding of the markets by learning from major financial crises over the finance history that would boost the confidence and help write
contextual reports and make well informed presentations

Recommended Text Book Edition Author Publisher

th
Capital Markets: Institutions and Instruments (FM) 4 Edition Fabozzi, F. J. & Modigliani, F

Financial Markets and Institutions 8th Edition Federic Mishkin, Stanley G Eakins, Thomson South Western
 Global Banking 2nd Edition Smith, R.C. & Walter Oxford University Press
Global Capital Markets: Integration, Crisis and Growth 1st Edition Obstfeld, M. & Taylor, A.M Cambridge University Press

Digital Tools: Virtual Stock Exchange – Market Watch for simulating trading in US Stock Markets
Software: MS Office especially MS Excel
Databases: Economist Intelligent Unit

Detailed Course Curriculum

Articles (A)/Cases (C)/ Digital/ Swayam/NPTEL/YouTube
Session Chapter
Topic Key Concepts Session Learning Outcomes Reports (R)/Technical Software Tools Video Links
No Reading
Notes (T)
(1) Financial Assets and International Capital Berkshire Introduction to the Global
its properties (2) Markets and Sovereign Hathaway for Financial Markets –
Origin of the global Debt: Crises Avoidance getting GauravKashyap
Issuers, investors,
financial system (3) and Resolution (9-707- perspective of
instruments, and
Role of 018) (C) global
Overview intermediaries–
intermediaries (4) investments https://www.youtube.com/wa
of Market overview of ALM
Role of governments The Global Capital (http://www.berk tch?v=y8OAu9agIHs
Participant for financial
1-4 especially during 1&2 Market: Supply, shirehathaway.co
s and institutions –
crises (5) Demand, Pricing and m/) On the Role of Financial
Financial regulation of
Classification of Allocation – Chapter 4 - Innovation and Finance
Innovation financial markets –
financial markets (6) The formation of the Science in Global Economic
financial
Financial Innovation: Global Capital Markets Growth and Development
innovation
causes and – McKinsey Global
constraints Institute (R) https://www.youtube.com/wa
tch?v=XPH0bwOZOo8
Exchange traded funds https://www.youtube.com/wa
(1) Role of Depository at Vanguard - A (9-311- tch?v=hoh1IhRjlGg
Institutions (2) ALM
Different segments 134) (C)
problems for
The of Global capital Easy Index Fund Investing
financial institutions
structure of markets – product Introduction to Islamic [5 Vanguard Index Fund
(3) Insurance 3,4,5,6
5-9 Global based Finance (9-200-002) (C) Portfolio]
companies business &7
Capital classification and
model (4) Insurance
Markets geographical The Major Global Stock https://www.youtube.com/wa
companies structure
classification exchanges (9 – 902 – tch?v=Gi5frE3Jq4c
and Investments (5)
169) (C)
Pension Funds,
How Islamic Finance Works
 Hedge Funds, The Capital Markets
Exchange Traded Industry the times they
Funds and other are a-changin’ – Oliver
AMCs Business Wyman (R)
Model (6)Investment
banking Business
Model (7) Primary
Secondary Markets
functioning (8) The
role of regulators
10 NCP 1
(1) Equity Markets Virtual Stock
Role of DMM
and types (2) The
exchange
major players in https://www.youtube.com/w
(Market Watch)
Leading stock the equity atch?v=pZpJgW0VnfA
for simulating
exchanges – Trading Markets (3) Trends in the Global
trading in US
mechanics – Major Indices and Capital Markets Wall Street trader's NYSE
Markets
Regulation of equity construction (4) Industry: Sell-Side tour
markets – Stock Trading Firms (R)
Equity Berkshire
11-13 Market indicator Mechanism, 13 &14 https://www.youtube.com/w
Markets Hathaway for
series – International Order Types and Global Investment atch?v=ns7kfI_apwk
getting
diversification – Transaction Costs Outlook 2022-
perspective of
Equity derivative (5) Innovative Blackrock
global
products equity
investments
instruments (6)
(http://www.berk
market structure
shirehathaway.co
and Price
m/)
Discovery
(1) Alternate Asset Allocation at
Investment s and Cook County Pension Alternative Investment
traditional Fund (9-218-030) Berkshire Funds – The Next
Investments (2) Hathaway for Frontier@ 6th Indian
Market for Blackstone at Age 30 getting Alternative Investments
Alternative Alternate (9 – 816 – 013) perspective of Summit
14 -19 Inventing Readings Investments (3) global
Alternate investments
Investments (http://www.berk https://www.youtube.com/w
Strategies (4) shirehathaway.co atch?v=vAcGZ0oLmAw
Relevance of m/)
Alternate All About Alternative
Investments and Investment Funds:
 Risks Involved. FerozeAzeez
Alternative Investments
2022 An Introduction https://www.youtube.com/
to Alternative watch?v=reVp8ak6Bps
Investments – World
Economic Forum (R) Hedge Fund Trader Ray
Dalio Best Trading
Alternate Investments – Techniques
CFA Institute (R) https://www.youtube.com/
watch?v=2jKEFe0fPbI

20 NCP 2
(1) Money market https://www.youtube.com/w
Instruments (2) atch?v=RevtGXKeXVc
Relevance of Global bond markets flash
Credit Ratings (3) warning
Primary markets
and secondary https://www.youtube.com/w
Trading of money atch?v=fKcVlyhKwFE
market
instruments (4) The Biggest Risks Facing
short term Bond Markets
Money Markets, funding Berkshire
Treasury and Agency alternatives for Hathaway for https://www.youtube.com/w
securities market, , corporate (5) getting atch?v=dTqo6_4Dr-M
Debt Corporate bond terms of loan Salomon and Treasury perspective of
20,21,22,2
21- 23 Markets-1 market, Municipal Agreements (6) Securities Auction(9- global Treasury Bond Maven
3,24,29
bond market , Liquidation 292-114) (C) investments Robert Kessler Warns of
International Bond Process and (http://www.berk Recession Ahead & Where
Market Creditors rights shirehathaway.co to Take Shelter
(7) Financial m/)
Innovation in
bond Markets
(8)International
Bond Markets (9)
Comparison of
Yields in different
Bond Markets (1)
Primary and s
Secondary
Market for
 Municipal
Securities
(1) Securitization (2) International Bond Market
market for Savings and Loans and
Mortgage Backed the Mortgage Market https://www.youtube.com/
securities Market (9 – 297-090) (T) watch?v=54dgCMt8S5E
Money Markets, and
Treasury and Agency Functioning(3) Lehman Brothers and
securities market, , Asset Backed the securitization of
Corporate bond Securities Market American express
Debt
market, Municipal Instruments and 25,26,27,2 Charge Card
24 - 28 Markets-1I
bond market , Functioning (4) 8,32 Receivables (9 – 293-
Mortgage Market, Commercial 121) (C)
Asset Based Mortgage backed
Securities Market. securities A Note on the Pricing
Instruments and of Mortgage Backed
Functioning (5) Securities (0-287-060)
Market for credit (T)
Risk Transfer

Reasons for major global https://www.youtube.com/w

crises in equity, Currency, atch?v=VQzEWeGJLP0
Crises due to bond and Mortgage
Global U.S. Subprime
pandemics, Sub- Markets (2) How to deal Global Financial Meltdown
Market Mortgage Crisis:
29 - 30 prime crisis, with the crises? (3) Effect Readings - One Of The Best
Crises: Policy Reactions (A) -
Currency Crises of crises on global Financial Crisis
(9-708-036) (C)
Crisis markets and economies Documentary Films
(4) Lessons for prevention
of crises
NCP 3 (PROJECT EVALUATION)
Global capital Markets Project
Objective: To give a practical context to the concepts based on current global markets and economies to have a firm and definitive
understanding of the global markets and what drives them while putting the issue and challenges facing these markets in the context.
Databases: UNCTAD, Economist Intelligent Unit
31-33
Software: Excel for developing hedge funds and alternate investment strategies

Part – I ( 12 Marks)
Countries under study
1. Japan
 2. UK
3. Germany
4. South Korea
5. China
6. Canada
7. Germany
8. Italy

1. Overview of the economy in the last 5 years - Analysis

2. Overview of the financial markets – regulators, government, intermediaries and players in the markets. Size of each of the market -
Analysis
3. Overview of depository institutions, Insurance industry, Asset Management industry. Hedge Fund industry, Investment Banking –
size, top 10 players, issues, unique products and industry features – Analysis
4. stock markets – Primary Market Regulations, Secondary markets, Major indices – constituents, major documents, IPO steps, indices
construction and performance, major sectors and their performance. Debt and hybrid instruments popular, corporate and government
bond market – Analysis
5. Money markets – Government, banking sector and corporates – major instruments – Issues and Analysis
6. Corporate debt and restructuring and liquidation and bankruptcy code – Issues and Analysis
7. Municipal securities Market – Instruments, Major municipalities – Issues and Analysis
8. Mortgage Market – Instruments, players – Issues and Analysis

Part – II (8 Marks)
9. Alternate Assets and hedge fund strategies – Select any 4 hedge funds and describe the popular hedge fund strategies.
10. Analysis of returns on alternate investments. Studying the returns on investment in real estate, short position in stocks,
commodities, real estate and unlisted companies. Analysis and development of a suitable alternate investment strategies in the current
context.

Component Test-1 Test-2 CP Project Term End Exam Total

Weightage (%) 10 20 10 20 40 100
Time of Evaluation ( Session) 10 20 1- 30 33 - -
Uploading of Marks ( Session) 13 23 33 33 - -
Expectations from Students
a. Students must report to the respective sessions well before the announced time. Latecomers will not be permitted to join the class after the scheduled time. If late,
the attendance for that session will be marked as absent.
b. Read the Case Study / material well prior to the class discussion. He/she is also expected to read the chapter indicated in the course plan as the faculty directs.
c. In the class discussion student is expected to participate actively and contribute to individual and group learning. Evaluation is based on active participation.
d. Evaluation is a continuous process at IBS. Every student needs to be aware of the timelines given in the section below. Absence from these evaluations will mean
non awarding of marks in that particular component
e. Each faculty has been given a scheduled consultation hour. Utilize this time to meet the faculty and clarify doubts if any, seek explanations and get mentored if
needed.

*********************************End of GCM handout***************

 IBS Hyderabad (Academic Year 2022-2023)
Course Handout

Program : MBA
Course Code : SLIV602
Course Title : Wealth Management
Semester : III
Faculty Name Prof Anita C Raman
Room No : F- 204
E-mail : [email protected]
Mobile No : 9885334209
Consultation Hours :

Program Outcomes (PO):

At the successful completion of the MBA Program, the students are expected to achieve the following
outcomes.

PO-1 Critical Thinking

PO-2 Effective Communication
PO-3 Social Interaction
PO-4 Effective Citizenship
PO-5 Ethics
PO-6 Environment and Sustainability
PO-7 Self-directed and Life-long Learning
PO-8 Initiative/Leadership
PO-9 Employability
PO-10 Teamwork
PO-11 Cross-Functional Skill Development
PO-12 Demonstrate Mastery in Analytics

Course Description:
This course covers the fundamental principles and the dynamics of the wealth management, which is
essential and required for any relationship manager. The course would enhance the conceptual
knowledge of the students to understand different asset classes and how to facilitate the financial
planning for clients. The course content was devised in consultation with banking industry experts
and sourcing contemporary Job description and specifications, roles and responsibilities of
relationship managers. Topics covered in the course include introduction to wealth management
industry, financial mathematics – risk and return, financial planning, tax planning, client profiling,
banking products, government securities, basics of stock market investments, equity and debt
instruments, mutual funds, derivative instruments, commodities, venture capital funds, hedge funds
and angel investors, real estate; insurance planning, retirement planning, succession/estate planning;
asset allocation strategies, portfolio management and evaluation.

Course Objectives (COs): The course is designed to:

 Provide an in depth qualitative and quantitative features of wealth management products to
appreciate personal financial planning process.
 Discuss the asset-based segmentation as well as risk and return characteristics of different
asset classes.
 Appraise the relative merits and limitations of different products available in the financial
markets and arrive at suitable asset classes to match client’s requirements.
 Formulate personal financial plans based on client’s lifestyle, life stage and risk appetite.
 Design financial/investment plans to suit clients requirements covering Investment Tax
Insurance Retirement and Estate planning and identify client preferences based on market
conditions.
 IBS Hyderabad (Academic Year 2022-2023)

Course Learning Outcomes (CLOs): At the end of the course, the student shall be able to:

1. CLO-1: Recall financial and investment concepts, formulae, related to personal financial
planning and apply these concepts to analyze and evaluate different asset classes.

2. CLO-2: Analyze critically and evaluate the risk and return characteristics of each financial
instrument to outfit to clients.

3. CLO-3: Demonstrate analytical skills to assess securities, evaluate assets, design suitable
products based on different client’s risk appetite.

4. CLO-4: Exhibit critical thinking skills to evaluate and select attractive assets/ instruments to
implement effective investment strategies.

5. CLO-5: Facilitate the construction of client’s investment portfolios, and rebalance portfolios
based on dynamic market conditions as per client preferences.

Course Learning Program Outcomes (PO) Pedagogy Assessment

Outcomes (CLO)
CLO-1 PO-1, PO- 11 Lecture, Case Studies Quizzes, Tests &
Assignments
CLO-2 PO-1, PO-2, PO-9 Lecture, Case Method, Quizzes, Tests &
Excel Workbooks Project Report
CLO-3 PO-1, PO-2, PO-5, PO-7, Case Method, Excel Project Report &
PO-11. Workbooks, Data Based Presentations
Insight
CLO-4 PO-1, PO-7, PO-9, PO-12 Case Method, Excel Problem Solving, Live
Workbooks, Practice Projects
Insight Videos
CLO-5 PO-1, PO-2, PO- 5, PO-7, Case Method, Excel Problem Solving, Live
PO-9, PO-11, P0-12 Workbooks, Practice Projects
Insight Videos

Recommended Textbook:
1. Financial Planning: Theory and Practice, By Sid Mitra and others, Reprint (2015) Sage
Publications, New Delhi

Suggested reference books:

1. The New Age Wealth Management: Harold Evensky, Stephen M Horan, and Thomas R
Robinson, CFA Institute Investment Series, USA, 2018

2. Personal Finance : Arthur J Keown, Pearson India, Eighth edition, India 2019.
 IBS Hyderabad (Academic Year 2022-2023)

DIGITAL RESOURCES:

A] Industry Insight:

S. No. YouTube Video Title & Link Speaker/Event/Organization

1. Introduction to Wealth Management
https://www.youtube.com/watch?v=l24V5aK0Dcc DevTech Finance

2. Understanding Asset classes. Franklin Templeton

https://www.youtube.com/watch?v=8g8gPAqFxmMTypes India

3. Types of Asset classes Yadnya Investment

https://www.youtube.com/watch?v=KaJkoBiHzj0 Academy
4. Life Cycle Vs Wealth cycle DevTech Finance
https://www.youtube.com/watch?v=3RA75GO6BSkh
5. Secrets of Investments: Warren Buffet
https://www.youtube.com/watch?v=iEgu6p_frmE&t=83s
6. Importance of financial Planning Yadnya Investment
https://www.youtube.com/watch?v=rGSIcYYnhjc Academy

7, Risk Profiling Yadnya Investment

https://www.youtube.com/watch?v=v30Vl0v_kJA Academy

8. Warren Buffett Stock Basics Warren Buffett Stock

https://www.youtube.com/watch?v=_uQjGz6jp2E Basics

Mutual Funds IDFC Mutual Fund

9. https://www.youtube.com/watch?v=V-pQPCnfz_0&t=65s

10. Asset Allocation Yadnya Investment

https://www.youtube.com/watch?v=a99o10W5VYY&t=77s Academy

11. Alternate Investments CFA Level I Exam by

https://www.youtube.com/watch?v=9PNi1_uo4Gg AnalystPrep
12. Portfolio Evaluation Vidya Mitra, Pathashala,
https://www.youtube.com/watch?v=sAro0Oj7Ots MHRD
13. How to use Retirement Corpus Better? | Yadnya Investment
https://www.youtube.com/watch?v=EYI53xGzSVg&list= Academy
RDCMUCPohbSYq4IXhv0yxiy-
sT4g&start_radio=1&t=81

B] Data Insight:

S. No. Resources Weblink

1. Prowess Database https://prowessiq.cmie.com/
2. Ministry of Finance https://finmin.nic.in
3. Money Control https://www.moneycontrol.com
4. Stock Reports / Stock Screeners https://trendlyne.com
5. Stock Exchanges https://www.nseindia.com
https://www.bseindia.com
 IBS Hyderabad (Academic Year 2022-2023)
C] Other Resources:

S. No. Resources Weblink

1. Articles and reports ET Wealth Management
2. Report- Wealth Management Reports
a) Global Wealth Reports: by
Credit Suisse https://www.credit-suisse.com/us/en.html
b) Global Wealth Management
Research Report by E&Y https://www.ey.com/en_us
c) Global Wealth Management
https://www.capgemini.com/in-en
Report 2021: by Capgemini
d) Wealth Management Industry: by https://www.mckinsey.com/in/
McKinsey
e) e) World Bank’s Commodity Market’s https://www.worldbank.org/en/news/press-
Outlook (Latest Report - April 2022) release/2022/04/26

Digital Tools:
Electronic and Web resources: Swayam Videos, Vidya Mitra andYou Tube,

Software: MS Office especially MS-Excel

Databases: CMIE-Prowess, NSE and BSE websites

Project Report: Students shall undertake an individual projects on any one of the asset class or
equity instruments from equity markets, , debt instruments from debt markets, mutual fund
schemes from mutual fund industry, ETFs , Real estate instruments - REITs and Infrastructure
instruments- InvITs, gold, commodity markets, financial and commodity derivatives, hedge
funds, private equity funds, venture capital and angel investments. The nuances of project
submission would be discussed and shared by the course instructor.

Plagiarism Policy:
Any infringement of copyright/patent/trademark is not appreciated and shall be viewed seriously.
The students are suggested to take proper guidance from the faculty members to avoid infringement
aspect knowingly/unknowingly.

Local/National/International Perspective:

Session Mapped Topic(s) in

Article/Case/Minor Project Pedagogical Tool
No Session Plan
Indian and Global
2&3 Wealth Management Published reports CP, Quizzes and tests
Practices
Global Commodity
20 Published reports and online sources CP, Quizzes and tests
Markets

1) NISM Certification: Students may consider to get NISM certification on Investment Adviser
(Level 1 and Level-2) which will enhance knowledge on investment advice and improve
placement opportunities.
2) NISM & CRISIL Certified Wealth Manager
 IBS Hyderabad (Academic Year 2022-2023)

Detailed Session Plan:

Case /Reading article

S. No Topic Learning Outcome Chapters
/ Lecture / Activity
1 Introduction to Identify types of Investors, Assets,
Wealth and Investments;
Management. Comprehend wealth management 1
process and key drivers of Industry;
Recognize the need and importance
of wealth management and role of
wealth managers.
2-4 Wealth Exemplify the wealth management Wealth Management
Management markets, products, players and Reports:
Industry regulators. a) Global Wealth Reports
by Credit Suisse
b) Global Wealth
Management Research
Report ( E&Y)
c) Global Wealth
Management Report
2021: Capgemini
d) Wealth Management
Industry: McKinsey
Wealth Report
HBS Case:
Laurence Longren: End
Game. N. 9-808-076
5-6 Financial Summarize the basics of Financial IBS CDC Case:
Mathematics: Mathematics to measure of return ABC Wealth Advisors. No. 3
Time Value of applying principles of Time Value of FM. 0009
Money Money,(compounding/discounting
and yield measures) etc.
Financial Recapitulate the basics of Financial HBS Reading Note
7-8 Mathematics: Risk Mathematics related to measures of Measuring investment
and Return risk- variance, covariance, standard Performance
Measures deviation, Beta and Alpha, Assess (9-208-110)
risk adjusted Returns- Sharpe ratio,
Treynor ratio and Information ratios
etc.

9 Financial Planning Explain the step by step process of Reading Material: 2

financial planning. Financial Planning for
young Investors by SEBI
 IBS Hyderabad (Academic Year 2022-2023)
10 Client Profiling Assess the risk appetite of clients by Activity: 2
appropriate client profiling, to Administration of client/
suggest/recommend suitable risk profiling questionnaire
portfolios. to the students for practice
11 Test- 1
Equity and Debt Explain the salient and HBR Case:
12-16 Instruments differentiating features of capital AQR Momentum Funds
(Corporate bonds, market instruments 9-211- 025
Government Assess the intrinsic value of
securities, Other instruments using the fundamental
Saving Schemes) analysis to assess underpriced or
overpriced securities; and predict
short-term price movements applying
technical analysis tools.
17- Mutual Funds Encapsulate the salient and
18 differentiating features of various 8,9
types of Mutual funds.
19 Derivative Appraise the usage of risk HBS Notes:
Instruments management instruments and Introduction to
techniques to hedge through Derivative Instruments.
financial decision making process No 9-295- 141
20 Commodities Associate the decision making in Reading Material:
alternate assets like World Bank’s
a) Gold Bullion, Gold Bonds, Commodity Market’s Outlook
Gold funds etc (Latest Report - April 2022)
b) Gas and Crude oil
c) Platinum and Nickel etc.
21 Test II Sessions 12- 20
22- Alternative Evaluate the aptness of investment HBS Notes: A note on
23 Investments (AIF) in private Equity, Hedge funds and Angel Financing. 9-298-
Venture Capital Angel investments etc. 083
Funds, Hedge HBS Note: Analytical tools
Funds and Angel in private Equity: Return
investments Bridge 9-220-019
24- Land and Real Comprehend the pros and cons of HBS Case:
25 Estates investment in Real estate property Brick by Brick. 9-216-058
and securities like REITs, InvITs etc To Buy or What to Buy:
Your First Home HBS
Case: 9-215-080
26-27 Asset Match the asset allocation strategies HBS Case: 10
Allocation with the desired portfolio, based on Asset Allocation at the
Strategies risk appetite of the client Cook County Pension
Funds: 9-218-30
28 Portfolio Explore various tools and 10
Management techniques, approaches for proper
Evaluation and portfolio management
Review Evaluate actual performance of the
portfolios against the expectations
and apply suitable portfolio
rebalancing techniques.
 IBS Hyderabad (Academic Year 2022-2023)
29 Income Tax Relate the tax liability on different 11, 12
Planning types of investment products and the
means of tax saving.

30 Risk Management Enumerate the Life and General The US life Insurance
planning: through insurance products available in the Industry.
4,5
Insurances market and their relative merits and HBS Case. 9-310-091
limitations
31-32 Retirement Exemplify the necessity for HBS Case: The Vanguard 13, 14
Planning and retirement planning, (designing Group Inc. and Target
Management product based on client’s life Retirement funds. 9-207-
goals, risk appetite, life
129
expectancy, cash surplus etc).
HBS Notes: Retirement
Planning NO.R.1407B
33 Estate Planning Declare the requirement and HBS Case: Advising
importance of succession /Estate Families on Estate Planning
planning. HBS Case 9-314- 088
15
Epitomize the different instruments
available for conveyance of title to
successors

Evaluation Timelines
As a part of continuous evaluation at IBS, the following evaluation schedule has been drawn.
Students are expected to go through the dates / sessions mentioned and prepare accordingly.

Component Component Expected slot / due Marks declaration by Weightage

Number date
Class Participation 1 33rd Session 33rd Session 10
Test-I 2 11th Session 13th session 15
st
Test-II 3 21 Session 23rd session 15
Project Report 4 31st Session 33rd Session 20
End exam At the end of As per Exam’s Within 3 days from 40
semester schedule. the date of Exam
Total 100

Expectations from Students

a. Students must report to the respective sessions well before the announced time. Latecomers
will not be permitted to join the class after the scheduled time. If late, the attendance for that
session will be marked as absent.
b. Read the Case Study / material well prior to the class discussion. He/she is also expected to
read the chapter indicated in the course plan as the faculty directs.
c. In the class discussion student is expected to participate actively and contribute to individual
and group learning. Evaluation is based on active participation.

***** End of Wealth Management***********

 IBS Hyderabad (Academic Year – 2022-23)
Course Handout
Course Code : SHFI636
Course Title : Advanced Topics in FinTech Semester: IV
Faculty Name : Dr. Ranajee Room No: F112
Mobile No: 9705180749 Email: [email protected]

Course Description:
The Financial Technologies (FinTech) disrupted the entire financial sector in the last decade. The FinTech disruptions are clearly visible in payments, online
lending, financial markets, and insurance. The advances in computational technologies, infrastructure, availability of data provide promising opportunities to
transform the financial sector in the future.

Course Objectives
The course is designed to…
 Provide a deep-dive into digital payments, lending, challenges between fintech and incumbent financial institutions, business applications and hands-on
illustrations of artificial intelligence in fintech sector.
 Help the students to identify a gap in existing businesses in the financial sector, define the problem statement, apply the learnings from fintech and propose
a solution.

Pre-requisite: Students are expected to have done the course: “Introduction to the Fintech”

Learning Outcomes

At the end of the programme the student shall be able to …

1. Understand the foundation technologies and other trends involved in FinTech
2. Evaluate new processes, procedures and business models to the payment systems, lending system and Insurance available in India and abroad
3. To assess the importance of regulations and privacy in Fintech
4. Compare and contrast different ML and AI algorithms that can be used in the FinTech space
5. Apply different AI and machine learning models to solve problems in Finance

Page 1 of 8
 IBS Hyderabad (Academic Year – 2022-23)
Reference text books:

 The Future of Finance: The Impact of FinTech, AI, and Crypto on Financial Services by Henri Arslanian & Fabrice Fischer (2019)
 Fintech: The New DNA of Financial Services by Pranay Gupta (Author), T. Mandy Tham (Author) De Gruyter; 1st edition (3 December 2018)
 Machine Learning and Data Science Blueprints for Finance: From Building Trading Strategies to Robo-Advisors Using Python by Hariom Tatsat,
Sahil Puri and Brad Lookabaugh (O’Reilly Publishers)
 Fintech Future: The Digital DNA of Finance by Sanjay Phadke; SAGE Publications India PvtLtd; 1st edition (5 March 2020)
 The FINTECH Book: The Financial Technology Handbook for Investors, Entrepreneurs and Visionaries by Susanne Chishti (Author), Janos Barberis
(Author) Wiley; 1st edition (1 April 2016)

Session Case /Reading article/

Topic Key Concepts Learning Outcomes Chapters Digital Tools
No. Lecture / Activity

Report – World FinTech

Report2019 by Capgemini

https://www.capgemini.com/n
A quick overview of Fintech ews/world-fintech-report-
foundation technologies - big 2019/
Overview of To provide quick overview of
1-5 data, 5G, Cloud computing, Handouts
FinTech Fintech technologies
Blockchain (smart contract), Report - Global FinTech
AL and ML and other trends Report 2019 by PwC
https://www.pwc.com/gx/en/i
ndustries/financial-
services/fintech-survey.html

Page 2 of 8
 IBS Hyderabad (Academic Year – 2022-23)
https://rbidocs.rbi.org.in/rdocs
To learn about the disruptive /Publications/PDFs/PSSBOO
Payment Systems - Current
Trends, Payment Process, opportunities offered by KLET93D3AEFDEAF14044
6-7 Payments-I payments ecosystem. Handout BC1BB36662C41A8C.PDF
Overview of Domestic and
Global payment systems (Payment and Settlement
Systems in India)

To analyse the strategies

used by India’s largest
payment organization Paytm
in building payments
To analyse the strategies used by network for market https://www.capgemini.com/r
payment organisations in dominance and revenues esources/top-trends-in-
Developing payments
8-9 Payments-II building payments network for
generation. payments-2021/
network
market dominance and revenues
generation. Case: Paytm: Building a
Payments Network

Product code 1: 517091-

PDF-ENG (Harvard)

https://www.cgap.org/sites/def
ault/files/publications/2019_0
To appreciate the role of 5_Case_Study_Fintech_and_F
payments ecosystem in inancial_Inclusion.pdf
Role of payments in creating wider socio-
10 Payments-III Handout https://www.afi-
financial inclusion economic benefits and
challenges faced in the global.org/sites/default/files/p
ublications/2018-
processes
09/AFI_FinTech_Special%20
Report_AW_digital.pdf

Page 3 of 8
 IBS Hyderabad (Academic Year – 2022-23)
11 Payments-IV To appreciate the
transformative role of
To appreciate the innovation steered by
https://www.pwc.in/assets/pdf
transformative role of payments ecosystem in
Innovations in payments s/consulting/financial-
innovation steered by fintech sector
ecosystem in services/fintech/payments-
transformation of fintech payments ecosystem in transformation/the-indian-
Case: Ant Financial
sector fintech sector payments-handbook-2020-
Product code: 617060- 2025.pdf
PDF-ENG (Harvard)

To appreciate the role of

Fintech Overview of Online FinTech lending in access to
lending-I Marketplace Lending (OML), credit, and how FinTech
12-13 (Industry Requirements P2P Lending, lending is solving problems in Handout
note and Consumer Credit Landscape, access to credit to firms,
disruptions) Small Business Lending individuals, and those in the
last mile

To appreciate the role of Report: BCG Lending report

The role of FinTech lending
FinTech lending in access to
in access to credit, and how https://image-
credit, and how FinTech
Fintech FinTech lending is solving src.bcg.com/Images/BCG-
14 lending is solving problems in Handout
lending- II problems in access to credit Digital-Lending-Report_tcm9-
access to credit to firms, 197622.pdf
to firms, individuals, and
individuals, and those in the
those in the last mile.
last mile.

Page 4 of 8
 IBS Hyderabad (Academic Year – 2022-23)
To discuss challenges against Case: GENTERA: Facing
FinTech in Challenges against incumbent financial the Digital Age
Incumbent
15-16 incumbent financial institutions.
Financial Product code: 319092-
institutions
Institutions PDF-ENG (Harvard)

https://www.mckinsey.com/in
dustries/financial-
services/our-
Introduction to Insure Tech insights/insurance-2030-the-
Handout impact-of-ai-on-the-future-of-
17-18 InsureTech InsurTech – Technology insurance
Enablers and Challenges
https://consensys.net/blockcha
in-use-
cases/finance/insurance/

AI in Finance Introduction AI/ML, and To introduce AI/ML, and

(Business applications in Financial applications in Financial
19 Sector Sector Handout
Applications)
-I

Case: Artificial Intelligence

and the Machine Learning
AI in Finance To appreciate AI-enabled
AI-enabled Customisation Revolution in Finance:
(Business Customisation in Financial
20 in Financial Sector Cogent Labs and the Google
Applications) Sector Handout
Cloud Platform (GCP)
- II
Product code: 218080-
PDF-ENG (Harvard)

Page 5 of 8
 IBS Hyderabad (Academic Year – 2022-23)
The opportunities created To explore the opportunities
AI in Finance https://www.forbes.com/sites/
by Machine Learning and created by Machine Learning bernardmarr/2016/09/30/what-
(Business and Natural Language
21 Natural Language Handout
are-the-top-10-use-cases-for-
Applications) Processing in Financial Sector
Processing in Financial machine-learning-and-
- III ai/?sh=2318a3d794c9
Sector

AI and ML in
Finance Supervised learning model to Real time data from yahoo
22,23
(Hands-on predict stock price Handout finance
using R) - I
AI and ML in Classification- based
Finance algorithms to predict whether Real time data from yahoo
24-26
(Hands-on the current trading signal is to Handout finance
using R) – II buy or sell

To understand the
regulations and data privacy
in FinTech sector

Case 1: Regtech at HSBC

To understand the regulations
Regulations The regulations and data Product Code: 120046-
27-28 and data privacy in FinTech Handout
in FinTech privacy in FinTech sector PDF-ENG (Harvard)
sector
Article – FinTech and
RegTech in a Nutshell, and
the Future in a Sandbox
(Download at
https://papers.ssrn.com/sol3/pa

Page 6 of 8
 IBS Hyderabad (Academic Year – 2022-23)
pers.cfm?abstract_id=3088303
)

29-33 Group Presentations by a team of 3 - 4, and each presentation for 15 minutes

presentations
Project description:

Conceptualize a new Use Case, for any Financial Services domain, involving one or more disruptive technologies.

Prepare a ppt presentation and report capturing the following details, for the Use Case: -

(a) Business Context / Problem Statement.

(b) Solution (Technology solution to address the Business Context / Problem, using one or more disruptive technologies).

(c) Expected Business Benefits from the above solution.

(d) Expected Challenges and how it can be handled.

(e) Key factors to be considered in implementing this Use Case.

Expectations from Students

a. Students must report to the respective sessions well before the announced time. Latecomers will not be permitted to join the class after the scheduled time.
If late, the attendance for that session will be marked as absent.
b. Read the Case Study / material well prior to the class discussion. He/she is also expected to read the chapter indicated in the course plan as the faculty
directs.
c. In the class discussion student is expected to participate actively and contribute to individual and group learning. Evaluation is based on active
participation.

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 IBS Hyderabad (Academic Year – 2022-23)
Evaluation Timelines
Keeping in line with continuous evaluation at IBS the following evaluation schedule has been drawn. Students are expected to go through the dates /
sessions mentioned and prepare accordingly.

S. No. Component Weightage Evaluation

1 CP – 1 20% 30th Session
2 Assignment – 1 15 % 11th Session
3 Assignment – 2 15 % 21st Session
4 Group Project Proposal 10 % 25th Session
5 Group Project Presentation 25% 33rd Session
6 Group Project Report 15% 33rd Session
Total 100

********************End of Advanced Topics in FinTech *****************

Page 8 of 8
 IBS Hyderabad
Academic Year: 2022-2023
Course Handout

Course Name: Behavioral Finance Semester: IV

Faculty Name: Ranajee

Room No: F-115 Wing No: F

Consultation Hours: Wed/Thu. Between 4.30-5.45

Mobile No: 9705180749 Email: [email protected]

Course Objective:

1. Internalize heuristics and biases that can cause irrational financial decisions
2. Understand the effects of behavioral factors in financial markets
3. Learn behavioral features of corporate finance
4. Understand the history of bubbles, manias and irrationality in financial markets
5. Designed to help students appreciate the importance of understanding human behavior in financial decision making.

Learning Outcomes:

At the end of the course, the student will be able to:

1. Learn the theory and practice of behavioral finance, history of market crashes & bubbles, heuristics, emotional biases & cognitive errors.
2. Applications of prospect theory, behavioral corporate finance, behavioral investing & other practical
3. Get an overview of research in the behavioral finance field (ex: Prospect Theory)
4. Gain better appreciation of investment decision process
5.
Suggested Text Book:

1. Behavioral
Component Component Expected slot / due date Marks declaration Weightage Finance by Prasanna
Number by Chandra
Written Test Test1 After 10th Session 12th Session 10%
Written Test Test2 After 20th Session 22th Session 20%
Reference Text Books:
Project Test3 After 30th Session 32th Session 20%
Class Participation CP After 32th Session 33rd Session 10% 1. Beyond Greed
End Term Final After 33rd Session - 40% and Fear:
Total 100 Understanding
Behavioral Finance and
the Psychology of Investing by Hersh Shefrin
2. Behavioral Finance: Investors, Corporations, and Markets by H Kent Baker & John R Nofsinger - Wiley finance
3. Behavioral Portfolio Management by Howard C Thomas - Harriman House Publishing

N Case Studies / White

CHAPTER Sessions Topic / Area Covered Learning Outcomes
O Papers
 Overview The student shall understand Vanguard White Paper
 Traditional vs. Behavioral the behavioural aspects of – Introduction to
Finance finance and the limitations of Behavioral Finance
1-2
Behavioral Finance  Modeling behavioral aspects market efficiency theory.
1 of finance
- Methodology:
 Market Efficiency –
Misconceptions&Anomalies
  The Psychology of Risk Vs The students relates investors Framing & Negotiation:
Uncertainty risk perception using Allais 9-895-023
 Risk Attitude- Allais Paradox Paradox and understands the
Finance - From
2
Theory to Practice:
3-4  Framing role of framing and mental The Framing Challenge
 Mental Accounting accounting in the decision What is the Real
making process. Challenge? HBR

 The Expected Utility Theory The student shall comprehend

 Discounted Utility Model. the differences between
 Hyperbolic Discounting& its expected utility and
implications hyperbolic discounting
3 Decision Making 5-7  Baye's Rule theories and understand the
 Bayesian way of learning utility of Baye’s rule in
 Bounded Rationality improving the decisions and
limits to human rationality

 Prospect Theory - The student shall appreciate When Do Losses Loom

Application to Finance the utility of prospect theory; Larger Than Gains? By
 Risk Attitudes & Decision decision weights vs. Dan Ariely
weights probabilities, value
4 Prospect Theory 8-9
 Value Function vs. Weighting &weighting functions, 30 yrs of Prospect
Function and integration & Segregation Theory: A review and
 Integration vs. Segregation of gains & losses assessment in Journal of
economic perspectives
  Tulip mania The student shall be able to
 Long Term Capital identify the symptoms / Who is to blame for the
Management indicators of market bubbles& bubble? HBR - F0105A
Irrational
5 Exuberance - 9-10  The 1929 Market Crash effects of market crashes.
Bubbles & Crashes  Mortgage Crisis of 2008
 Nifty fifty
 The 2000 Tech bubble

 Perception, Memory & Understands the implications

Heuristics of heuristics and emotional
 The Affect Heuristic biases on financial decision Understanding
 Loss Aversion Bias makingand learns the ways Behavioral Biases in
Heuristics & Finance & Investing –
 Overconfidence Bias and means to mitigate their
6 Emotional Biases 12-14 effects. Safal Niveshak
 Self-Control Bias
 Status Quo Bias
 Endowment Bias
 Regret Aversion Bias
 The Disposition Effect
 Cognitive process The student shall be able to
 Cognitive Errors and recognize the cognitive errors Understanding
Emotional Biases humans suffer from, their Behavioral Biases in
 Conservatism Bias financial implications and Finance & Investing –
 Confirmation Bias find suitable ways to mitigate Safal Niveshak
 Representativeness Bias the effects of the same.
7 Cognitive Errors 15-18 How cognitive illusions
 Base Rate Neglect
blind us to reason by
 Sample Size Neglect
DanielKahneman
 Illusion of Control Bias
 Hindsight Bias
 Anchoring Bias
 Availability Bias
  Detection of Errors &
Biases & dealing with
them
 Evolutionary Theory Understand the evolution in
 Emotion & Reasoning human biases & errorsand the
Emotional  Expertise & Implicit insights from neuro Finance
8 19
Foundations Learning
 Neuro finance -Some
Insights
 Fairness, Reciprocity & The student understands the The
principle
of
social
Trust Conformity effects of social influenceon proof by Robert Cialdini
Social Proof &  Groupthink human decision making
9 20
Herding  Herding

 Earnings Announcements The student understands The Equity Premium

(PEAD) howinvestors adjust to Puzzle by Jeremy J
 Momentum & Reversal earnings announcements, Siegel & Richard Thaler
Behavioral Finance  Noise Trading momentum & reversal in
10 - Explanation for 22-23  The Equity Premium financial markets, “Equity
Anomalies Puzzle Premium" puzzle, risk
perception of volatility on
short term and long term
equity returns.
 Market predictions The student shall understand
 The Illusion of Validity the nature, scope and
 Pricing stocks to beat the limitations of market
11 Market Predictions 24 market predictions and the role of
illusion of validity in
prediction
  Riding losers too long Understand how lack of self- The disposition to sell
 Portfolios, Pyramids, control & myopic decision winners too early & ride
Behavioral
Biases making affect individual losers too long by Hersh
12 Investing - 25
 Retirement Savings wealth creation Shefrin in Journal of
Individual Investors
 Investor Myopia & Self Finance
Control
 Open Ended Mutual funds Comprehends relative
& mis framing contributions of skill & luck
 Close Ended Mutual funds in a fund manager's
& Discounts performance
 Fixed Income Securities &
Behavioral
Behavioral phenomena
Investing - Understands obfuscation
13 26-27  The Money Management
Institutional games that mutual fund
Industry
Investors industry uses to induce
 Framing Effects, Regret &
opaqueness in to frames of
style Diversification
investors and the factors that
drive discounts in close
ended mutual funds.

 Rational Managers & Appreciates the effects of Why do Managers

Irrational Investors behavioral biases on corporate Choose Poor strategies?
 Managerial over managers and the 9-391-172
14 Capital Budgeting 28 confidence implications of over
 Behavioral Capital confidence on capital
Budgeting allocation
 Dividend Policy
  Corporate Takeovers & Understands the reasons for
Winners Curse under performance of IPO's,
 IPO's Underperformance behavioral implications in
 Analyst's Optimism in corporate takeovers &
Earnings Prediction mergers and the effects of
Managers & analysts optimism in earnings
15 29
Analysts prediction

 Option prices and Market Assesses the effects of

sentiment sentiment on speculation &
 Commodity Futures how does it affect option
16
Options, Futures &
31-33  Excessive Speculation in prices, foreign exchange
Foreign Exchange Foreign Exchange Market market & other derivatives
market?
 ICFAI BUSINESS SCHOOL (IBS), IFHE, HYDERABAD
MBA. SEMESTER IV
Financial Services
Course Handout
Academic Year: 2022 - 2023

Name of the Faculty Member Dr.Jyothi Chittineni Room No F-207

Email Id [email protected] Mobile No 9848779770
Consultation Hours

Course Objectives The course is designed to…….

1) Familiarize students with different financial services extended by the banks and non-banking financial institutions and other financial institutions
2) Bring awareness among the students about the tools one should be equipped with for analyzing the fund based and fee based financial services like
Leasing
3) Make the participant understand the role and responsibilities of a financial services provided apart from the disintermediation that the banks do;

Learning Outcomes At the end of the programme the student shall be able to …………………..
1) Inter relate the various financial services offered by bank, non-bank and other financial institutions and their roles and responsibilities;
2) Determine the rentals for Lease and Hire purchase transfers
3) Appraise the role credit rating in securing the mortgage securities
4) Compare and contrast the housing the loan and consumer loans offered by Banks and other financial institutions

Recommended Text Book Edition Author Publisher

th
1) Financial Services by MY Khan 10 Edition MY Khan McGraw Hill Education India Pvt Ltd,
Delhi
Suggested Reading
2) Financial Services 2020 IUP Publications IUP Publications

Page 1 of 4
 DETAILED COURSE CURRICULUM
LEARNING OUTCOMES
CHAPTER
Sessions TOPIC KEY CONCEPTS At the end of the chapter the CASE DETAILS
NUMBER
student will be able to……..
01 -02 Financial services Evolution of Financial Services - Explain the differentiating 1
– Introduction Leasing, Hire Purchase services, features of different financial
Consumer Finance and Installment services like leasing, Hire
Credit, Portfolio Management purchase etc
Schemes etc.
03-04 Leasing An Introduction to Equipment Infer the relative advantages 2-4
Leasing. Lease Concepts, and disadvantages of Leasing
advantages & disadvantages. as an alternate source of
finance.
05-07 Lease Evaluation Lease Evaluation by a Corporate; Appraise , lease evaluation 6-7 Practical problems
Break Even Lease Rental; How a from lessor and lessee angles
Lessor evaluates proposal;
08-10 Hire Purchase Concept & Mathematics of Hire Examine Hire purchase as an 9 Practical problems
Purchase: Calculation of Effective alternate source of finance as
Interest Rate – Framework for against buying and leasing
Financial Evaluation: The Hirer's decisions
Angle & Hire Vendor’s Angle
11 TEST 1
12-13 Factoring & Factoring – Types – Factoring vis- Compare the services offered 4
Forfaiting à-vis Bills Discounting, Credit by factors & forfaitors as Indian Dry Fruits Limited (CRC)
Insurance, Forfaiting - Evaluation against the Banks, with respect
of a Factor - Evaluation of to collection of receivables
Factoring
14-15 Housing Finance Housing Finance companies, Describe the comparative 5 Indian Housing Finance Industry at
Refinance schemes for HFCs, merits and demerits of housing Crossroads
Regulatory guidelines for HFCs finance schemes of Banks and Business Model Innovation at HDFC
financial institutions
Page 2 of 4
16 - 18 Consumer Credit Concept of Consumer Credit Explain the importance of 10 Understanding CIBIL Credit Report
Rating – Consumer Credit Rating credit rating in selling the Students need to download it from
Agencies & their Methodology financial products and services. CIBIL website.
Role of Consumer Credit in the Calculate the quantum of
Financial System - Features of finance eligible and the
Consumer Credit Transactions - repayment schedule for
Mathematics of Consumer Credit, different consumer loans
Consumer Credit –Auto Loans &
Gold Loans

19 Plastic Money Types of Plastic Money, – Member Recite the relative merits and American Express: Charging into the
Establishments-Member Affiliates. limitation of plastic cards. Credit Card Industry
Sharing of Commission

20-21 Insurance, Banc Life, Non-life insurance industry; Recognize the importance of 6 LIC Facing Private Sector (CRC)
assurance; TPAs Reinsurance; IRDA – role insurance in the personal and
and responsibilities; IRDA Vs. business dealings.
SEBI; Distribution Channels
22 TEST 2

23-25 Securitization – Securitization Process – Mortgages Distinguish between the 12 US Financial Crisis: Fannie Mae &
Mortgages and and Mortgage Instruments – Pass various mortgage securities Freddie Mac at the Core
Mortgage through – pay through, MBBs available in the market. US Subprime Mortgage Market
financing CMOs etc. A, B & C
26-27 Credit Rating Concept of Credit Rating - Types of Explain the importance of credit 14 Rating the Credit Rating Agencies
Credit Rating - Advantages and rating in selling the financial Credit Rating – Shadow Rating – Rating
Disadvantages of Credit Rating - products and services. of Lakshmi Vilas Bank Limited
Credit Rating Agencies & their
Methodology - Services for Rating for
Credit Cards; Personal Loans,
Housing Loans; Auto Loans, etc
28 Online Trading & Online Trading; Role of Brokerage Describe the online trading
Brokerage Houses Houses; Demat Accounts process.

Page 3 of 4
29- 30 Prudential Norms Prudential Norms for Income Recite the Income recognition 17 www.rbi.org.in
& Provisioning for Recognition - Provisioning for Bad and asset classification norms
NBFCs and Doubtful Debts applicable to banks and NBFCs
in India.
31-32 Venture Capital, Concept of Venture Capital and Appraise the different types of 18 Private Equity – What’s Wrong with
Private Equity and Evolution of Private Equity; private equity and the risks and Private Equity Firms:
Hedge Funds Growth and Development of rewards associated with them Ask Mervyns
Venture Capital and Private Equity PE Companies: The Strategic Shift
33 Review

Component TEST 1 TEST 2 CP Project TERM END TOTAL

Weightage (%) 15 15 10 20 40 100
Time of Evaluation ( Session) 12 23 30 31 - 33 -
Uploading of Marks (Session) 14 25 -

INSTRUCTIONS TO STUDENTS:
1) Attend the classes regularly. Minimum attendance required for the course is 75%. Late comers will be marked absent
2) Students who do not fulfill minimum required attendance will be given ‘F ’grade, even though they score good marks in a test.
3) No makeup tests will be conducted for the tests not taken by the student on scheduled dates. Conducting a makeup test is at the discretion of the
faculty member. The student cannot claim it as a right.
4) Come prepared to the class by reading the prescribed case / chapter scheduled for the day, so that class room discussions would be brisk and
meaningful and facilitate learning.
5) Seek clarification for your doubts in the class room itself, so that others too, would get benefitted of them. Please note that no doubt is too small to
be dealt in the class room.
6) Coming late, wearing dress other than the formal ones, using cell phones, bringing the newspapers / periodicals, cross talking, sitting in a seat other
than the allotted ones, giving proxy attendance in the class are strictly prohibited
7) Do not indulge in unfair practices in and outside the class room, tests / assignments /examinations, etc. They warrant disciplinary action.
8) Please refer to IFHE Code of Conduct and Discipline Rules given in the student’s hand book. Follow discipline to avoid its enforcement

******************************************End of Financial Services*******************************

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