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Why should one take this course?

  • To understand the fundamental features of debt instruments.
  • To understand the trading of the debt instruments on the NSE-WDM Segment.
  • To know the regulatory and procedural aspects related to debt market.
  • To learn the concepts of bond valuation, yield curve, bootstrapping and duration.

Who will benefit from this course?

  • Students
  • Teachers
  • Debt Market Dealers
  • Employees of BPO/IT Companies
  • Anybody having interest in the Fixed Income Market

FIMMDA-NSE Debt Market Syllabus

Debt Instruments

Basic concepts of debt instruments

Indian Debt Markets

Different types of products and participants; Secondary market for debt instruments

Central Government Securities: Bonds

Primary issuance process; Participants in Government bond markets; Constituent SGL accounts; Concept of Primary dealers, Satellite dealers; Secondary markets for Government bonds; Settlement of trades in G-Secs; Clearing corporation; Negotiated Dealing System; Liquidity Adjustment Facility (LAF).

Central Government Securities: Treasury Bills

Issuance process; Cut-Off yields; Investors in T-Bills; Secondary market activity in T-bills.

State Government Bonds

Gross fiscal deficit of State Governments and its financing; Volume, Coupon rates and ownership pattern of State Government bonds.

Call Money Markets

Participants in the call markets; Call rates

Corporate Debt: Bond

Market segments; Issue process; Issue management and Book building; Terms of a debenture issue; credit rating.

Commercial Paper & Certificate of Deposits

Guidelines for CP Issue; Rating notches for CPs; Growth in the CP market; Stamp duty;
Certificates of deposit.

Repos

Repo rate; Calculating settlement amounts in Repo transactions; Advantages of Repos; Recent issues in repo market in India; Secondary market transactions in Repos; Repo accounting.

Bond Market Indices and Benchmarks

I-Bex: Sovereign bond index; NSE-MIBID/MIBOR

Trading Mechanism in the NSE-WDM

Description of the NSE WDM trading system; Order types and conditions; Order entry in negotiated trades market; Order validation and matching; Trade management; Reports; Settlement; Rates of brokerage.

Regulatory and Procedural Aspects

G-Sec Act 2006; SEBI (Issue and Listing of Debt Securities) Regulations 2008 and Market Practices and Procedures

Valuation of Bonds

Bond valuation; Accrued interest; Yield; Weighted yield; YTM of a portfolio; Realized yield; Yield-price relationships of bonds

Yield Curve and Term Structure of Interest Rates

Yield Curve; Bootstrapping; Alternate methodologies to estimate the yield curve; Theories of the term structure of interest rates

Duration

Introduction and definition; Calculating duration of a coupon paying bond; Computing duration on dates other than coupon dates; Modified duration; Rupee duration; Price value of a basis point; Portfolio duration; Limitations of duration

Fixed Income Derivatives

Concept of fixed income derivatives; Mechanism of forwarding rate agreements; Interest rate swaps