CWA ICWA Final : Group III - Capital Market Analysis & Corporate Laws

ICWAICWA ICWA (2008)FinalSyllabus and Books • Group III - Capital Market Analysis & Corporate Laws

ICWA :: Final
Paper 11 : Capital Market Analysis & Corporate Laws
[One paper: Three Hours – 100 marks]

Objective . . .

To know application of the various regulations for financial and capital markets
To understand Companies Act and compliances under the same
To gain basic knowledge on Corporate Governance Principles and purpose of good corporate governance

A. Capital Market Analysis ( 50 Marks)

1.Introduction of Capital Market & Capital Market Instruments10%
Capital Market / Security Market
Primary Market / New Issues / IPO Market
Secondary Market / Stock Market / Stock Exchange
Depositaries
Private placements of shares / Buy back of shares
CAPM vs Market Model
Issue mechanism
Forward Contract and future contracts
Clearing mechanism
2.Capital & Financial Market Regulation10%
Financial System and Capital Market Instruments,
SEBI – Regulation of Market and Control,
Collective Investment Schemes, Depositories, Dematerialization of Securities,
Regulation of banking & finance companies – role of Reserve Bank of India and Banking Ombudsmen; Regulation of Insurance sector by Insurance Regulation and Development Authority (IRDA),
Cyber Law and regulation of e-commerce and electronic financial transactions,
Contemporary issues and Development
3.Capital Market Analysis30%
Stock market efficiency;
Risk and Return;
Investment Analysis;
Cost of Finance And Financing Structures;
Capital Asset Pricing Model;
Products on Stock Exchanges: Equity / Stock Markets, Basket Trading, Derivatives, Debt Markets- Retail and Wholesale, Interest Rate Futures, Exchange Traded Funds, Mutual Funds (Close Ended).
Risk Management System: Capital Adequacy Requirements, Intra day Trading limits, Gross Exposure Limit, Margining Procedure.
Derivatives Markets: Introduction to Options and Futures, Explanation of Market Terminologies, Pay-off Structure, Basic Trading Strategies, Weekly Options.
Debt Markets: Debt Products traded in Stock Exchanges, Wholesale Debt Markets, and Retail Debt Markets.
Commodity Market & Trading Corporate Actions: Bonus, Rights, Dividend, Buy Back etc., Regulations to be followed by the Corporates, Impact on the Shareholders.
Portfolio Management
»Basic Principle, Functions and Activities
»Factors effecting investment decision in portfolio management
»Investment strategy
»Portfolio theory
»Use of matrix approach in investment decisions
Mutual Funds
»Role of Mutual Fund in financial market
»Advantage of investment in mutual fund
»Regulations and operations
»Investors right and obligation

B. Corporate Law & Corporate Governance ( 50 Marks)

4.Corporate functionalism in the context of Companies Act & Corporate Laws30%
Introduction, Incorporation and its Consequences,
Financial Structure and Membership,
Management and Control of Companies,
Inter-corporate loans, Investments, Guarantees and Security,
Maintenance of Statutory Books/Registers and Filing of Returns,
Winding-up,
Joint Ventures,
Corporate Accountability,
Competition Act and Competition Commission,
Information Act and its corporate implication, Emerging Issues and Concepts
Merger and Acquisition
»Reason for merger acquisition
»Objective of acquisition
»Gain from merger
»Problem of merger and acquisition
»Issues related to Companies Act 1956, Industrial(Development & Regulation) Act, Sick Industrial (Special Provision) Act, Income Tax Act, SEBI Regulations
»Function of Court
»Reconstruction
»De-merger or division
5.Corporate Governance20%
Genesis, Narasimhan Committee and other Committee Recommendations on Corporate Governance,
Effective Board of Directors and its role,
Independent Directors and Audit Committee, Remuneration Committee, Nomination Committee;
Evaluation of effectiveness of Internal Control-Management Accounting applications and Directors’ Responsibility Statement;
Going Concern status-financial and other indicators, role of management audit, evaluation of going concern uncertainties;
Related party transactions and disclosures;
Project management audit and corporate governance;
Relevance of Risk Evaluation and Risk management;
Evaluation of key financial decisions and disclosures;
Management Audit for investors’ protection in the context of Corporate Governance,
Corporate Governance Norms as prescribed by SEBI,

Recommended Books

TitleAuthorPublisher
Investment ManagementV.A.AvadhaniHimalaya Publishing House
Security Analysis & Portfolio Management ManagementFischer & JardanPrintice-Hall of India Private Limited
Investment analysis & Portfolio Management M.Ranganathan & r. Madhumathi Pearsons Education (Singapore) Pte Ltd.
Investment Analysis & Portfolio Management Reilly & BrownThomson (South Western)
Security Analysis & Portfolio ManagementPunithavathy PandianVikas Publishing Home Private Limited
Security Analysis & Portfolio ManagementV.K.BhallaS.Chand & Company Limited
Financial Management (3rd edition)P. RakshitElegant Publisher