CONTENTS

Unit: 1 Overview of Financial Markets                              13
Introduction
Money Market.
Meaning and Definition of Money Market
Features of Money Market
Functions of Money Market
Instruments of Money Market
Commercial Paper
Certificate of Deposits (CDs)
Bills of Exchange or Commercial Bells
Treasury Bills (T-Bills)
Call and Notice Money
Bill Discounting
Letter of Credit
Money Market Mutual Funds (MMMF)
Repurchase Agreements (REPOs)
Parties to Repo
Working of Repo
Importance of Repo
Types of Repo Agreements
Risks Involved in Repo
Interest Rate Quotation
Different Types of Interest Rate Quotation
Fixed Income Securities
Working of Fixed Income Securities
Examples of Fixed Income Securities
Capital Market
Capital Market Securities
Direct Instruments
Derivative Instruments
Derivative Market
Major Types of Derivatives
➤ Participants of the Derivatives Market
➤ Types of Derivative Markets in India
Features of the Derivatives Market
➤ Role or Functions of Derivative Market
➤ Importance of Derivatives Market
➤ Risks Associated with the Derivatives Market
➤ Advantages of Derivatives Market
➤ Disadvantages of Derivatives Market
➤ Growth and Development of Derivative Market in India
➤Stock Market Derivatives in India
Foreign Exchange Market
➤ Nature of Foreign Exchange Market
➤ Features of Foreign Exchange Market
➤ Scope of Foreign Exchange Market
➤ Structure of Foreign Exchange Market
➤ Settlement of Transactions
➤ Foreign Exchange Transactions
➤ Types of Foreign Exchange Transactions
→ Spot Transaction
→Forward Transaction
→ Swaps Transactions
→ Future Transactions
→ Option Transactions
→ Outright Deals
Review Questions
Unit: 2 Treasury Management                                            83
Introduction
Meaning and Concept of Treasury Management
➤ Definitions of Treasury Management
Features of Treasury Management
Objectives of Treasury Management
Significance of Treasury Management
Functions of Treasury Management
Scope of Treasury Management
Relationship between Treasury Management and Financial Management
81➤ Difference between Treasury Management and Financial Management
➤ Integration of Treasury Management and Financial Management
➤ Model of Integrated Treasury and Financial Management
Functional Relationship between Treasury Management and Financial Management
Role and Responsibilities of Chief Finance Officer (CFO/Treasurer
Key Roles of the Chief Finance Officer (CFO)/Treasurer
Responsibilities of the Chief Finance Officer (CFO)/Treasurer
Tools of Treasury Management
Internal Treasury
MARKETS
Functions of Internal Treasury
Advantages of Internal Treasury
Challenges of Internal Treasury
Risk Analysis in Treasury Management
➤ Major Types of Risks in Treasury Management
Integrated Treasury Management
➤ Advantages of Integrated Treasury Management
Cost Centre Vs Profit Centre Approach
Review Questions
Unit: 3 Control and Regulation of Treasury Functions        141
Introduction
Internal Control in Treasury Functions
➤ Objectives of Internal Control in Treasury Functions
➤ Components of Internal Control System
➤ Internal Audit and Review of Controls
Regulation, Supervision and Control of Treasury Operations
➤ Objectives of Regulation and Supervision
➤ Regulatory Framework for Treasury Operations
➤ Supervision and Control Mechanisms within Treasury Operations
➤ Regulatory and Supervisory Tools
➤ Challenges in Regulation and Supervision of Treasury Operations
Internal and External Audit of Treasury Operations
Role of Reserve Bank of India (RBI)
Role of Information Technology (IT) in Treasury Management
Accounting, Valuation and Elimination of Exposures
83➤ Measurement of Exposure in Treasury Management
Review Questions
Unit: 4 Risk Management                                 181
Meaning and Nature of Risk
➤ Risk Vs Uncertainty
➤ Classifications of Risk
Risk Management
➤ Definitions of Risk Management
➤ Importance of Risk Management
➤ Objectives of Risk Management
➤ Risk Management Process
➤ Potential Risk Treatment
➤ Risk Management Techniques
Risk Measurement
➤ Risk Measurement Techniques
Risk Control
Risk Exposure Analysis
➤ Purpose of Risk Exposure Management
➤ Steps to Calculate and Manage Risk Exposure
Risk Management in Banks
➤ Risk in Banking Business
➤ Classification of Risks for Banks
Asset Liability Management Practice
➤ Components of ALM System
➤ Credit Risk Management
➤ Operational Risk Management
➤ Stress Testing
Risk Management and the Role of RBI
Review Questions