Com5ej315 — Syllabus

Course Summary The course is designed to provide students with a foundational understanding of the investment banking industry.

The aim of this course is to furnish students with fundamental knowledge and comprehension of the investment banking industry, alongside detailed discussions on the regulatory framework governing investment banking in India.

• Course Outcomes (CO): CO CO Statement Cognitive Level* Knowledge Category# Evaluation Tools used CO1 Gain a comprehensive understanding of the fundamental principles, concepts, and practices within the investment banking industry.

U C Written examination Assignment CO2 Acquire knowledge about various financial markets, including equity, debt, and derivative markets, and understand how they operate within the context of investment banking.

U C Written examination Assignment Project CO3 Students will stay abreast of industry trends, innovations, and emerging technologies shaping the investment banking landscape, preparing them for the dynamic nature of the industry.

An P Written examination Assignment Project Case analysis CO4 Develop a deep understanding of the regulatory framework governing investment banking activities, particularly in the context of Indian regulations, ensuring compliance and ethical conduct.

An C Written examination Assignment Project

• - Remember (R), Understand (U), Apply (Ap), Analyse (An), Evaluate (E), Create (C) # - Factual Knowledge(F) Conceptual Knowledge (C) Procedural Knowledge (P) Metacognitive Knowledge (M) Detailed Syllabus:

Module Unit Content Hours I Introduction to Investment Banking 16 1 Meaning, Definition, Concept, Importance of Investment Banking, Commercial Banks vs. Investment banks 1 2 History and Emergence of Investment Banking - Functions of Investment Banks;

Types of Investment Banking Operations 2 3 Concept of Financial Services, Importance, Fund based and Fee based advisory services 1 4 Regulatory Environment -- Financial crisis of 2008 and Dodd-Frank Act (DFA) European Market Infrastructure Regulation (EMIR) - Markets in Financial Instruments Directive (MiFID) 3 5 Regulatory Framework for Investment Banking in India, Evolution, Introduction to various relevant regulations - SEBI (Merchant Bankers) Regulations, 1992, SEBI (Issue of Capital and Disclosure Requirements) Regulations 2018, SEBI Listing Obligations and Disclosure Requirements (LODR) Regulations 2015 3 6 SEBI (Foreign Portfolio Investors) Regulations, 2019, SEBI (Research Analyst) Regulations, 2014, SEBI (Investment Adviser) Regulations, 2013 3 7 SEBI guidelines for Merchant Bankers, SEBI (Investment Advisors) Regulations 2013, Recent Developments in Regulatory Environment, Industry Association of Investment Bankers of India (AIBI), AIBI‘s Code of Conduct for Merchant Bankers. 3 II Investment Banking and Business Valuation 14 1 Corporate Value vs Investment Value, Drivers for Value Creation 2 2 Corporate Valuation using Business Valuation Models 2 3 Market Approach to Valuation: Comparable Companies Analysis (CCA) & Precedent transaction analysis (PTA) (Basic Problems) 2 4 Income Approach to Valuation: The discounted cash flow analysis (DCF) and the leveraged buyout analysis (LBO) (Basic Problems) 2 5 Asset Approach to Valuation: The book value method and the liquidation value method. (Basic Problems) 2 6 Special Cases in Valuation, Arriving at fair value 2 7 Valuation and Investment Banking 2 III Business of Investment Bankers 10 1 Business of Investment Bankers - Full-service Investment Banking – Core Investment Banking 2 2 Business of raising funds through issue of equity and debt/Fixed income instruments including international funding and rating. Business of trading. 2 3 Accrediting Agency - Credit Rating Agencies 2 4 Credit Rating Concept - Rating Process and Methodology - Credit rating in India SEBI Regulations for Credit Rating Agencies in India. 2 Module Unit Content Hours 5 Background of Anti Money Laundering/KYC - Prevention of Money Laundering Act 2002, Case Studies in Money Laundering, Three Stages of Money Laundering,

Placement and the Methods Adopted, Layering and Methods Adopted, Need for KYC 2 IV Financial Technology (FinTech) in Investment Banking 8 1 Role of FinTech in Investment Banking, Block chain and Crypto currencies 2 2 Algorithmic Trading, Robo-Advisors and Automation overview 2 3 Basic Over View of Aladdin Application & Charles River Application 2 4 Introduction to Major Financial Data sources 2 V Open-Ended Module This module aims to promote critical examination and analysis of emerging developments in investment banking industry. Through the analysis of real-world cases and recent trends, students will get a more profound understanding of the constantly evolving nature of investment banking industry.

Suggested topics:

• Identify and discuss specific cases related to SEBI regulations for Investment Banking
• Identify and discuss latest cases in Business Valuations
• Identify and discuss latest Case studies in Mergers and Acquisitions in India
• Discuss Credit Rating Agencies role in Investment Banking with specific cases
• Discuss latest trends in Fin-tech
• Practical exposure to financial data sources such as Bloomberg, WFO, Thomson Reuters etc. (Basic exposure)
• Practical exposure to Aladdin Application & Charles River Application (basic exposure)
• Any other relevant assignments/cases seem fit to be discussed in the subject domain 12 References

1. Joshua: Rosenbaum & Joshua Pearl, Investment Banking, Valuation, Leveraged Buy outs and Mergers and Acquisitions, John Wiley & Sons, Inc., Hoboken, New Jersey, 2013.
2. Prathap: Giri S, Investment Banking-Concept, Analysis and Cases, Tata McGraw Hill.
3. Punithavathy: Pandiyan, Financial Services and Markets, Vikas Publishing House Ltd.
4. Giuliano: Iannotta, Investment Banking: A Guide to Underwriting and Advisory Services, Springer-Verlag Berlin Heidelberg, 2010
5. Michel: Fleuriet, Investment Banking Explained: An Insider's Guide to the Industry, McGraw Hill Publishing, 2008
6. Matthew: Krantz; Robert R. Johnson, Investment Banking for Dummies, Wiley, 2020

7. AIBI’s Due Diligence Handbook

8. AIBI’s Code of Conduct for Merchant Bankers

1. Alex K: Mathews & K Sasidharan, Financial Services and Systems, McGraw Hill Education 10. I.M. Pandey, Financial Management, Vikas Publishing House Ltd.