Capital Markets syllabus : Latest Updated Syllabus for syllabus

Introduction to Capital Markets

• Definition & Importance
•  Types of Capital Markets: Primary & Secondary
•  Role of Capital Markets in Economy
•  Key Market Participants

 Primary Market

• IPOs & FPOs
•  Underwriting
•  Process of Security Issuance
•  Regulatory Requirements

Secondary Market

• Stock Exchanges & Trading Platforms
•  Brokers, Dealers, and Market Makers
•  Order Types & Execution
•  Clearing and Settlement Processes

Equity Markets

• Types of Equity Securities: Common, Preferred
•  Stock Indices: S&P 500, FTSE, NIFTY
•  Stock Valuation Methods
•  Dividends & Earnings

Fixed Income Markets

• Bond Basics: Government, Corporate, Municipal Bonds
•  Bond Pricing, Yields, and Duration
•  Interest Rate & Credit Risk
•  Credit Ratings

Derivatives Markets

• Introduction to Derivatives
•  Types: Futures, Options, Swaps
•  Hedging and Speculation
•  Derivative Pricing Models

Alternative Investments

• Real Estate & Commodities
•  Private Equity & Hedge Funds
•  Infrastructure Investments
•  Risk & Return Characteristics

Market Mechanisms and Trading Systems

• Trading Mechanisms & Platforms
•  HighFrequency Trading (HFT)
•  Electronic & Algorithmic Trading
•  Dark Pools & OffExchange Trading

Financial Regulation and Compliance

• Key Regulatory Bodies: SEC, FINRA, FCA
•  Securities Laws & Compliance
•  Insider Trading & Market Manipulation
•  Ethics in Capital Markets

Risk Management in Capital Markets

• Types of Risks: Market, Credit, Operational
•  Risk Measurement & Metrics
•  Value at Risk (VaR)
•  Hedging Strategies

Investment Strategies and Portfolio Management

• Active vs. Passive Investing
•  Portfolio Theory & Diversification
•  Asset Allocation
•  Performance Metrics

Capital Market Instruments in Depth

• Equity Instruments: IPOs, ETFs
•  Debt Instruments: Bonds, MBS, ABS
•  Hybrid Instruments: Convertibles, Preferreds
•  Structured Products

Financial Statement Analysis

• Financial Ratios & Statement Analysis
•  Balance Sheet, Income Statement, Cash Flow
•  Financial Modeling Basics
•  Industry Comparisons

Valuation Techniques

• Discounted Cash Flow (DCF)
•  Relative Valuation: P/E, EV/EBITDA
•  Dividend Discount Model (DDM)
•  Comparable Company Analysis

Capital Market Indices and Benchmarks

• Role of Market Indices
•  Major Indices: S&P 500, FTSE, DAX
•  Benchmarking Performance
•  Index Fund Strategies

Global Capital Markets and Emerging Trends

• International Stock Exchanges
•  CrossBorder Investing
•  Emerging Markets
•  Impact of Technology & Fintech

Economic Indicators and Market Impact

• Key Indicators: GDP, CPI, Employment Data
•  Fiscal & Monetary Policies
•  Central Banks’ Role
•  Economic Cycles and Market Reactions

Case Studies and RealWorld Applications

• Historical Market Events: DotCom, 2008 Crisis
•  Market Reactions to Economic Policies
•  Portfolio Building Simulation
•  Investment DecisionMaking Exercises

Professional Certifications and Career Paths

• CFA, CFP, FRM, CAIA Certifications
•  Career Pathways in Capital Markets
•  Essential Skills for Finance Roles
•  Networking and Industry Resources

Module

Topics Covered

1. Advanced Equity Market Strategies

• Quantitative Equity Strategies
•  Statistical Arbitrage
•  Pairs Trading and Mean Reversion
•  FactorBased Investing (e.g., Value, Momentum)

2. Advanced Fixed Income Analysis

• Yield Curve Analysis
•  Interest Rate Models: CoxIngersollRoss, Vasicek
•  Bond Convexity and Duration
•  Credit Spread Risk

3. Structured Products and Securitization

• AssetBacked Securities (ABS) and MortgageBacked Securities (MBS)
•  Collateralized Debt Obligations (CDOs)
•  Tranches and Waterfall Structures
•  Risks and Valuation

4. Derivatives Pricing and Hedging

• BlackScholes Model and Greeks
•  Advanced Option Strategies (Butterfly, Straddle, etc.)
•  Swaps and Exotic Options
•  RiskNeutral Valuation

5. Advanced Portfolio Management

• MultiFactor Models: FamaFrench, APT
•  Modern Portfolio Theory and Beyond
•  Risk Parity and Tactical Asset Allocation
•  Portable Alpha Strategies

6. HighFrequency Trading (HFT) and Algorithmic Trading

• Market Microstructure and Order Flow
•  Latency Arbitrage and Colocation
•  Execution Algorithms (VWAP, TWAP)
•  Regulatory Challenges

7. Financial Engineering and Derivative Structures

• Custom Derivative Products
•  Volatility Structures and VIX Trading
•  Exotic Options: Barrier, Asian, and Digital Options
•  Real Options and Strategic Decision Making

8. Alternative Investments and Hedge Fund Strategies

• Hedge Fund Strategies: Long/Short Equity, Global Macro, EventDriven
•  Private Equity Structures and LBOs
•  Real Estate Investment Analysis
•  Commodities and Managed Futures

9. Credit Derivatives and Risk Management

• Credit Default Swaps (CDS) and Indices
•  Synthetic CDOs and Basket Default Swaps
•  Counterparty Risk and CVA/DVA
•  Stress Testing and Scenario Analysis

10. Market Risk and Liquidity Risk Management

• ValueatRisk (VaR) and Expected Shortfall
•  Liquidity Risk Metrics and LCR
•  Tail Risk Hedging and Stress Testing
•  Regulatory Compliance (Basel III)

11. Behavioral Finance and Market Psychology

• Behavioral Biases: Overconfidence, Herding
•  Prospect Theory and Mental Accounting
•  Impact of Sentiment on Market Prices
•  Behavioral Finance in Portfolio Construction

12. Advanced Technical Analysis and Quantitative Trading

• Chart Patterns and Quantitative Indicators
•  Machine Learning in Technical Analysis
•  Algorithmic Pattern Recognition
•  Backtesting and Strategy Optimization

13. ESG and Sustainable Investing

• Environmental, Social, and Governance (ESG) Criteria
•  Green Bonds and Sustainable ETFs
•  Impact of ESG on Portfolio Performance
•  Regulatory Landscape for Sustainable Finance

14. Global Capital Flows and Emerging Markets

• Foreign Exchange Markets and Currency Hedging
•  Emerging Markets Analysis and Risk Factors
•  Globalization and CrossBorder Investment
•  Impact of Political and Economic Events

15. Advanced Valuation Techniques

• Leveraged Buyouts (LBO) Valuation
•  Real Option Valuation
•  Distressed Asset Valuation
•  Contingent Claims Analysis

16. Fintech and Blockchain in Capital Markets

• Blockchain Basics and Smart Contracts
•  Cryptocurrencies as Financial Instruments
•  Decentralized Finance (DeFi)
•  Impact of Fintech on Trading and Settlement

17. Quantitative Finance and Machine Learning Applications

• Machine Learning in Finance: NLP, Predictive Analytics
•  Quant Strategies for Trading and Investment
•  AI in Risk Management
•  Portfolio Optimization using ML Techniques

18. Mergers & Acquisitions (M&A) in Capital Markets

• M&A Valuation and Deal Structuring
•  Leveraged Buyouts and Synergies
•  M&A Financing and Integration
•  Regulatory Issues in M&A

19. Case Studies on Financial Crises and Market Volatility

• Analysis of 2008 Financial Crisis, DotCom Bubble
•  Market Response to COVID19
•  Lessons Learned from Major Market Events
•  Stress Testing Models

20. Professional Certifications and Career Development

• CFA, FRM, CAIA, CQF Certification Paths
•  Skills for Advanced Roles in Capital Markets
•  Networking and Career Resources
•  Developing Technical and Analytical Expertise

Level

Book Title

Author(s)

Beginner

Let’s Talk Money: You've Worked Hard for It, Now Make It Work for You

Monika Halan

Beginner

Guide to Indian Stock Market

Jitendra Gala

Beginner

How to Avoid Loss and Earn Consistently in the Stock Market

Prasenjit Paul

Beginner

The Intelligent Investor

Benjamin Graham

Beginner

One Up on Wall Street

Peter Lynch

Intermediate

Indian Financial System

Bharati V. Pathak

Intermediate

Security Analysis and Portfolio Management

Sudhindra Bhat

Intermediate

Equity Management in India

Preeti Singh

Intermediate

Investment Valuation: Tools and Techniques for Determining the Value of Any Asset

Aswath Damodaran

Intermediate

Bulls, Bears and Other Beasts: A Story of the Indian Stock Market

Santosh Nair

Intermediate

Options, Futures, and Other Derivatives

John C. Hull

Advanced

Fixed Income Markets in India

Bhaskar P. Narayan

Advanced

Financial Risk Management in Indian Markets

Sunil K. Parameswaran

Advanced

Security Analysis

Benjamin Graham, David Dodd

Advanced

Valuation: Measuring and Managing the Value of Companies

McKinsey & Company

Advanced

Advanced Portfolio Management and Quantitative Analysis

N.R. Parasuraman

Advanced

Behavioral Finance: Understanding Biases in Indian Investors

Ajit Dayal

Supplementary

The Big Bull of Dalal Street: Harshad Mehta’s Role in the Indian Stock Market

Pranav Vora

Supplementary

Indian Stock Market: A Beginner’s Guide

Vijay Mukhi

Supplementary

The Rise and Fall of Nations: Ten Rules of Change in the Post-Crisis World

Ruchir Sharma