UNIVERSITY OF DELHI

CNC-II/093/1(25)/2023-24/65

Dated: 29.05.2023

NOTIFICATION
Sub: Amendment to Ordinance V
[E.C Resolution No. 60/ (60-1-9) dated 03.02.2023]
Following addition be made to Appendix-II-A to the Ordinance V (2-A) of the
Ordinances of the University;
Add the following:
Syllabi of Semester-III of the Department of Finance & Business Economics under
Faculty of Applied Social Sciences & Humanities based on Under Graduate
Curriculum Framework -2022 implemented from the Academic Year 2022-23.

Bachelor of Business Administration (Financial Investment Analysis) [BBA (FIA)]

(FASSH)
DSC 7: CORPORATE FINANCE
Credit distribution, Eligibility and Pre-requisites of the Course
Course title Credit Credit distribution of the course Eligibility Pre-
& Code s criteria requisite of
Lecture Tutorial Practical/ the course
Practice (if any)

DSC 7: 4 3 1 NIL Class XII NIL

CORPORAT
E FINANCE

Course Objectives:
• To provide an understanding of the essential elements of the financial environment in
which the business firm operates.
• To acquaint students with the techniques of financial management and it’s
applications for business decision making.
• It aims to give and develop in the students the viewpoint of the CFO of a firm, though
it will also be useful in developing relevant skills for various strategic finance roles
in the modern business entities.

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Learning Outcome:
After studying this course, the student will be able to:
• Understand the basic concepts of financial management.
• Understand how to coordinate various decisions to maximize wealth of an
organisation in today`s financial environment.
• Equipped to arrive at strategic corporate finance decisions with the required accuracy
which will be aided by using various excel functions.

Course Contents:
Unit 1 (8 Hours)
Nature of Financial Management: Finance and related disciplines; Scope of Financial
Management; Profit Maximization, Wealth Maximization. Functions of Finance – Finance
Decision, Investment Decision, Dividend Decision; Risk-Return Trade-off in Finance
Functions. Organisation of finance function; Concept of Time Value of Money – present value,
future value, annuity, growing annuity, perpetuity, growing perpetuity, excel functions of time
value of money.

Unit 2 (16 Hours)

Strategic Investment Decisions: Capital Budgeting– Nature and meaning of capital

budgeting; Principles and Process; Estimation of relevant cashflows and terminal value;
Evaluation techniques– Payback period, Accounting Rate of Return, Payback Period, Net
Present Value, Internal Rate of Return & MIRR, NPVvs.IRR, Net Terminal Value, Profitably
Index Method, Risk analysis in Capital Budgeting-Sensitivity and Scenario analysis, Certainty
Equivalent Approach, RADR, Real options, excel functions of capital budgeting techniques.
Cost of Capital: Meaning and concept, Measurement of cost of capital-Cost of debt; Cost of
Equity Share; Cost of Preference Share; Cost of Retained Earning; Computation of over-all
cost of capital based on Historical and Market weights(WACC); Adjusting cost of capital for
risk.

Unit 3 (12 Hours)

Strategic Financing Decisions – Capital Structure, Theories and Value of the firm –
NetIncome approach, Net Operating Income approach, Traditional approach, Modigliani
Miller (MM) model, HAMADA model; Determining the optimal capital structure, Checklist
for capital structure decisions, Costs of bankruptcy and Financial distress, Trade off models,
Pecking Order Theory.
Leverage analysis and EBIT-EPS Analysis: Concept of leverage, Types of leverage:
Operating leverage, Financial leverage, Combined leverage; EBIT-EPS Analysis, Guidelines
for capital structure planning, Link between capital structure and capital budgeting
Dividend Decisions: Factors determining dividend policy, Theories of dividend – Gordon
model, Walter model, MM Hypothesis, Signaling Theory, Forms of dividend–Cash dividend,
Bonus shares, Stock split, Dividend policies in practice, Patterns observed in payout policies
worldwide.

Unit 4 (9 Hours)

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Working Capital Management
Working Capital Management: Determination of Working Capital. Determining financing mix
of working capital. Receivables Management – Objectives; Credit Policy, Cash Discount,
Debtors Outstanding and Ageing Analysis; Costs – Collection Cost, Capital Cost, Default Cost,
Delinquency Cost. Management of Cash (Theory only) – Need for Cash, Cash Management
Techniques (Lock box,Concentration Banking). Inventory Management (Theory only) – ABC
Analysis; Minimum Level; Maximum Level; Reorder Level; Safety Stock; EOQ (Basic
Model).

Essential Readings: (Latest editions of the following to be used)

1. Berk, J., & DeMarzo, P. (5th ed.).Corporate Finance, Pearson - Prentice Hall.
2. Horne, J. C. V., & Wachowicz, J. M., Jr. (13th ed.). Fundamentals of Financial
Management. Prentice Hall, Pearson Education.
3. Pandey, I. M. (n.d.). Financial Management. Pearson.

Additional Readings:
1. Khan, M.Y. & Jain, P.K.(n.d.) Financial Management Text Problem and Cases, Tata Mc
Graw Hill Publishing Co. Ltd.
2. Brealey, R.R., Myers.S., Allen, F.,&Mohanty, P.(n.d.)Principles of Corporate Finance.
New Delhi: Tata Mc-Graw Hill.
Teaching – Learning Process
The teaching-learning process for this paper would include classroom lectures and tutorials;
Case study discussions; class presentations; Workshops.
Examination scheme and mode:
Evaluation scheme and mode will be as per the guidelines notified by the University of Delhi.

Key Words
Finance, Capital Budgeting, Wealth Maximization, Cost of Capital, Dividends, Leverage.

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 DSC 8: FINANCIAL MARKETS & INSTITUTIONS
Credit distribution, Eligibility and Pre-requisites of the Course

Course title & Credits Credit distribution of the course Eligibility Pre-requisite of
Code criteria the course (if any)
Lecture Tutorial Practical/

Practice

DSC 8: 4 3 1 NIL Class XII NIL

FINANCIAL
MARKETS &
INSTITUTIONS

Course Objectives:

• The objective of this paper is to introduce students to role and functioning of

financialmarkets,financialproductsthataretradedinsuchfinancialmarketsandinstitutions
associatedwithfinancialmarkets.
• It explains the role of financial system on economic development. Various conceptual
issues related to risk and return, the role of regulatory bodies, mechanism of commercial
banking, operations of insurance companies and mutual funds are discussed
elaborately. This will enable them to take the rational decision in financial environment.
Learning Outcomes:
After studying this course, the student will be able to:
• Financial architecture of an economy and its keyplayers.
• The fabrication of Indian Financial markets.
• Working of Capital market, debt market, money market in India
• FunctioningofdifferentplayersinfinancialmarketincludingRegulators.

Course Contents:
Unit1: IndianFinancialSystemand majorInstitutions (12 Hours)
Structure of Indian Financial System: An overview of the Indian financial system, major
reforms in the last decade: Payment banks, GST, innovative remittance services, Insolvency
and Bankruptcy code. Regulatory Institutions in India: RBI, SEBI, IRDA, PFRDA.
Commercial Banking: Role of Banks, NPA, Risk Management in Banks. Universal Banking:
need and importance, Core banking solution (CBS), NBFCs and its types; comparison between
Banks and NBFCs.
Unit 2: Financial Markets in India (9 Hours)
Introduction to Financial Markets in India: Role and Importance of Financial Markets, Types
of Financial Markets: Money Market; Capital Market; Linkages Between Economy and
Financial Markets, Integration of Indian Financial Markets with Global Financial Markets,
Primary Market: Instruments, book building process (numerical). Merchant Bank: role and
types, Mutual Fund: types of Mutual Funds and different types of schemes. Corporate

4
Listings:Listing and Delisting of Corporate Stocks, Foreign Exchange Market: Introductory,
only Conceptual.
Unit 3: Capital Market in India (12 Hours)
Introduction to Stock Markets, Regional and Modern Stock Exchanges, International Stock
Exchanges, Demutualization of exchanges, Indian Stock Indices and their construction. Major
Instruments traded in stock markets: Equity Shares, Debentures, Exchange Traded Funds.
Trading of securities on a stock exchange; Selection of broker, capital and margin
requirementsofabroker,MTMandVARMargins(withnumerical),kindsofbrokers,openingofanac
counttotradeinsecurities,DEMATSystem,placinganorderforpurchase/sale of shares, contract
note and settlementof contracts, Commodity Markets – Structure.
Unit4: MoneyMarkets&DebtMarketsinIndia (12 Hours)
MoneyMarket:Meaning,roleandparticipantsinmoney markets,Segmentsofmoneymarkets, Call
Money Markets, Repos and reverse Repo concepts, Treasury Bill Markets, Certificateof
Deposit and Commercial Paper (with numerical). Debt Market: Introduction and meaning,
Primary Market for Corporate Securities in India:Issue of Corporate Securities,
Secondarymarket for government/debt securities (NDS-OM), Auction process (with
Numerical), CorporateBondsvs. Government Bonds. Retail Participation in Money and Debt
Market-RBI Retail Direct platform.
Essential Readings
1. Bhole, L. M., & Mahakud, J. (2018). Financial Institutions and Markets: Structure,
Growth and Innovations (6th Edition). McGraw Hill Education.
2. Saunders, A., & Cornett, M. M. (2007). Financial Markets and Institutions (3rd ed.). Tata
McGraw Hill.
3. Pathak, B. V. (2008). Indian Financial System: Markets, Institutions and Services (2nd
ed.). Pearson Education.
4. Khan, M. Y. (n.d.). Financial Services. McGraw Hill Education.
AdditionalReadings:
1. Madura, J. (2008). Financial Institutions and Markets. Cengage Learning EMEA.
2. Kohn, M. G. (2004). Financial Institutions and Markets. Oxford University Press.
3. Fabozzi, F. J., & Modigliani, F. (2005). Capital Markets: Institutions and Markets (3rd
ed.). Prentice Hall of India.

Teaching Learning Process: Lecture, discussion, Power Point presentations, Course

Contents: may be discussed in light of latest SEBI regulations and RBI guidelines.

Examination scheme and mode:

Evaluation scheme and mode will be as per the guidelines notified by the University of Delhi.

Key Words: Indian Financial System, Financial Markets, Financial Institutions, Capital
Market, Money Market, Debt Markets.

5
 DSC 9: CORPORATE LAW
Credit distribution, Eligibility and Pre-requisites of the Course

Course title & Credits Credit distribution of the course Eligibility Pre-requisite of
Code criteria the course (if any)
Lecture Tutorial Practical/

Practice

DSC 9: 4 3 1 NIL Class XII NIL

CORPORATE
LAW

Course Objective(s):

In view of increasing emphasis on adherence to norms of good corporate governance, Company

Law assumes an added importance in the corporate legislative it deals with structure,
management, administration and conduct of affairs of Companies and to understand the
applications of company laws to practical commercial situations.
Learning Outcomes:
After studying this course, the student will be able to:
• Identify the different types of contracts and their characteristics.
• Analyze special contracts such as contract of indemnity and guarantee, bailment and
pledge, and agency.
• Acquire theoretical and practical perspective on many aspects of Indian companies Act.
• Understand the concept of formation, functioning, meetings, directors and winding off of
company.
• Develop critical thinking through the use of company law cases.
• Understand consequences of applicability of contract and Insolvency and bankruptcy laws
in business situations.

Course Contents:
Unit 1 (16 Hours)
The Indian Contract Act 1872:Meaning and Essentials of contract; Kinds of contract; law
relating to offer and acceptance, consideration, competency to contract, free consent, void
agreements, performance of contracts, discharge of contracts, breach of contracts and quasi
contract; Special contracts: contract of indemnity and guarantee, bailment and pledge, and
agency.

Unit 2 (12 Hours)

The Companies Act 2013:Meaning and Nature of Company with Emphasis on its Advantages
and Disadvantages over other forms of Business organizations, Comparison between Company

6
and Partnership and Company and Limited Liability Partnership, Kinds of Companies–Public,
Private, Holding, Subsidiary, Limited and Unlimited Companies, Share-holding and Guarantee
Companies, Small company, One person company, Government company and foreign
company.

Unit 3 (12 Hours)

Incorporation and Documents of Company; Incorporation of Company, Procedure of
registration, Certificate of Incorporation, Promoters and their position, Powers, Duties and
Liabilities; Memorandum of Association (MOA), Articles of Association (AOA), Alteration of
MOA and AOA; Prospectus and its Kinds, Directors: Duties of Directors and their Criminal
and Civil liabilities.
Company meetings: Kinds of Meetings, Essential Conditions of a Valid Meeting, Procedure
for Calling Company Meeting; Adjudicatory Bodies: National Company Law Tribunal;
National Company Law Appellate Tribunal – Constitution, Powers, Jurisdiction, Procedure;
Winding up of Companies.
Unit 4 (5 Hours)
Insolvency and Bankruptcy Code 2016:Introduction of Insolvency and Bankruptcy Code
2016 (IBC), purpose behind enactment of IBC, regulatory mechanism, Insolvency Process,
Adjudicating authority, Committee of creditors, Reorganization, Liquidation.

Essential Readings:
1. Singh, A. (n.d.). Principles of Mercantile Law. Eastern Book Company.
2. Kapoor, G. (n.d.). Business Law. New Age International Pvt. Ltd Publishers.
3. Maheshwari, M., & Maheshwari, S. (n.d.). Principles of Mercantile Law. National
Publishing Trust.
4. Aggarwal, R. (n.d.). Mercantile & Commercial Law. Taxmann.

Teaching – Learning Process: Lecture, Discussion, Presentations, Course contents shall be

discussed in the light of relevant case laws.

Examination scheme and mode:

Evaluation scheme and mode will be as per the guidelines notified by the University of Delhi.

Key Words: Indian Contract Act, Companies Act, Insolvency and Bankruptcycode.

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 DISCIPLINE SPECIFIC ELECTIVE (DSE) COURSES

DSE 1: PROJECT APPRAISAL AND FINANCING

Credit distribution, Eligibility and Pre-requisites of the Course

Course title & Code Credits Credit distribution of the course Eligibility Pre-
criteria requisite of
Lecture Tutorial Practical/
the course
Practice (if any)

DSE 1: PROJECT 4 3 1 NIL Class XII NIL

APPRAISAL AND
FINANCING

Course Objectives:

• To provide an understanding to the students about identification of a project, feasibility

analysis, alternative project appraisal techniques, Project financing.

Learning Outcomes:
On successful completion of this course, the students will be able to:
• Apply various methods of project Appraisal.
• Use Capital Budgeting techniques for financial evaluation and selection of Projects.
• Understand the concept and application of Social Cost and Benefit Analysis.
• Carry out Risk Analysis for business projects and identify alternative sources of financing.
• Apply appraisal techniques for evaluating live projects.

Course Contents

Unit 1: Introduction to Projects and their Appraisal (9 Hours)

Project Definition, Project Identification, Project Life Cycle, Project Stakeholder Analysis,
Feasibility study.Types of Project Appraisal (Brief Overview): Market and Demand Analysis,
Technical Appraisal, Financial Appraisal, Economic Appraisal, Managerial Appraisal, and
Social Appraisal.
Unit 2: Financial and Social Appraisal (15 Hours)
Project Cost and its components, Investment Evaluation Methods (Non-Discounting and
Discounting Methods): Payback Period, Accounting Rate of Return, Discounted Payback
Period,Net Present Value, Profitability Index, Internal Rate of Return (IRR), Modified Internal
Rate of Return (MIRR). Suitability of Methods to different Projects, Investment Evaluation in
Practice. Social Appraisal: Rationale for Social Cost Benefit Analysis, Approaches of SCBA

8
(UNIDO and Little-Mirrlees Approach), Environment Impact Assessment (EIA) and Social
Impact Assessment (SIA) of Projects. Relevant Case Studies.
Unit 3: Project Risk Analysis (12 Hours)
Risk Analysis and Management: Sources and Measures of Risk. Methods of Assessing Risk –
Sensitivity Analysis, Scenario Analysis, Break-Even Analysis, Simulation Analysis, Decision
Tree Analysis, Project Selection under Risk – Judgmental Evaluation, Payback Period, Risk
Adjusted Discount Rate Method, Certainty Equivalent Method, Strategies for Risk
Management.
Unit 4: Project Financing (9 Hours)
Capital Structure; Choices of Financing; Sources of Financing – Internal Accruals, Equity
Capital, Preference Capital, Debentures (or Bonds), Term Loans, Venture Capital, Private
Equity, Venture Capital Vs Private Equity, Loan Syndication, Consortium Financing, Public
Private Partnership (PPP), Securitization, Crowd Funding; Raising Capital from International
Markets: Foreign Issue, Foreign Direct Investment (FDI), External Commercial Borrowings
(ECB).
Essential Readings:
1. Chandra, P: Projects – Planning, Analysis, Selection, Financing, Implementation, and
Review. 2019 Edition. McGraw Hill Education.
2. Agrawal, R., & Mehra, Y. S. (2017). Project Appraisal and Management. Taxman
Publications.
Additional Readings:
1. Goodpasture, C.JQuantitative Methods in Project Management. J. Ross Publishing.
2. Chandra, P,Financial Management: Theory and Practice, McGraw Hill Publishing.

Teaching Learning Process:

Class room lecture, Numerical Problem solving, Case study discussion, Class presentationon
the assigned topic by students individually or in group, Workshop, Tutorials, Role play.
Examination scheme and mode:
Evaluation scheme and mode will be as per the guidelines notified by the University of Delhi.

Key Words
Project Appraisal, Market and Demand Analysis, Technical Appraisal, Financialand
Investment Appraisal, Risk Analysis, Socio-Economic Appraisal, Project Financing.

9
 DSE 2: DIGITAL FINANCE
CREDIT DISTRIBUTION, ELIGIBILITY AND PRE-REQUISITES OF THE COURSE
Course title & Code Credits Credit distribution of the course Eligibility Pre-
criteria requisite of
Lecture
the course
(if any)

DSE 2: DIGITAL FINANCE 4 3 1 NIL Class XII NIL

Course Objective(s): The goal of the course is to get the students acquainted with the dramatic
changes in the financial sector generated by the digital revolution.
Learning Outcomes:
After studying this course the student will get the:
• Understanding of the nature of digital revolution in finance.
• Knowledge of key digital technologies and products, and state reaction to the digital
revolution.
• Knowledge of FinTech, big data analytics and new financial business models.

Course Contents:
Unit 1: Digital Transformation of Finance (4 Hours)
A Brief History of Financial Innovation, Digitization of Financial Services, Introduction to
FinTech & Funds, FinTech Transformation, FinTech Typology, Collaboration between
Financial Institutions and Start-ups. Introduction to Regulation and future of RegTech.
Crowdfunding- Role of finance in economy, the role of financial intermediaries, Types and
functioning of crowdfunding markets, Differences between traditional funding models and
crowdfunding markets, Informational problems in the crowdfunding model.

Unit 2: Payment Systems (9 Hours)

Digitalization of the payment system. The historical evolution of the payment system.,
Attributes of a well-functioning payment system., Banks as guarantors of the payment system,
new entrants and new payment models: risks for the banking system. FinTech applications in
Banking & Non-Banking Financial Companies (NBFCs); Insurance; payments; Lending;
Audit; and Compliance. Electronic Clearing Service (ECS) ,Real Time Gross Settlement
(RTGS), National Electronic Funds Transfer (NEFT), Immediate Payment Service (IMPS),
Unified Payments Interface (UPI), Growth of Digital Payments in India, RBI guidelines on
Digital Payments.

Unit 3: Crypto Assets and Blockchains (16 Hours)

Introduction: Crypto an asset for trade and Crypto-currency, Problems with issuerscredibility,
Fin Tech & Securities Trading; Cryptocurrencies and its future as currency, blockchain as a
registration mechanism, Functioning of the block chain system. The integration of digital

10
currency and blockchain and issuers incentive problems; Proptech: FinTech of Real Estate;
Possible alternative uses of blockchain technology in the economy and difficulties in its
implementation. Use of bitcoin in money laundering., The regulatory debate. Introduction of
Central Bank Digital Currency (CBDC). Other Emerging Financial Technologies: Internet of
things (IOT) & AR/VR applications.

Unit 4: FinTech, Big Data Analytics, and new Financial Business Models (16 Hours)
The use of data in traditional credit decisions, the combination of big data and machine learning
to improve financing decisions., Smart accounts, customized financial products, risk
management and fraud prevention., High frequency trading: opportunities and risks.
Digital security, Challenge of confidentiality, integrity and availability, Digital securities as a
new systemic risk in the economy. Regulations on cybersecurity. Latest development in the
field of Digital Finance.

Essential Readings:
1. Lynn, T., Mooney, J. G., Rosati, P., & Cummins, M. (2019). Disrupting finance:
FinTech and strategy in the 21st century. Springer Nature.
2. Beaumont, P. H. (2019). Digital Finance: Big Data, Start-ups, and the Future of
Financial Services. Routledge.
Additional Readings:
1. Phadke, S. (2020). FinTech Future: The Digital DNA of Finance. Sage Publications.
2. Maese, V. A., Avery, A. W., Naftalis, B. A., Wink, S. P., & Valdez, Y. D. (2016).
Cryptocurrency: A primer. Banking LJ, 133, 468.
Teaching – Learning Process:
Lecture, discussion, Power Point presentations, Case Studies, Workshop, Tutorials.
Examination scheme and mode:
Evaluation scheme and mode will be as per the guidelines notified by the University of Delhi.

Key Words
Crowdfunding, Bitcoin, Blockchain Technology, Fintech, Digital Security, Cryptocurrency.

11
 DSE 3: INSURANCE MANAGEMENT
Credit distribution, Eligibility and Pre-requisites of the Course

Course title & Code Credits Credit distribution of the course Eligibility Pre-
criteria requisite
Lecture
of the
course (if
any)

DSE 3: INSURANCE 4 3 1 NIL Class XII NIL

MANAGEMENT

Course Objectives: To enable students to identify and manage different types of risks. They
will be able to understand the concepts, types and principles of Insurance. Further, they will
know the important aspects and technical components of management of Insurance business.
Learning Outcomes:
On successful completion of his course, the students will be able to:
● identify and analyze various types of risks faced by individuals and businesses, evaluate
the role and importance of insurance in mitigating these risks, and differentiate between
different types of insurance
● understand the principles of risk management, techniques for managing risks, and legal
principles governing insurance contracts, and develop an understanding of real-world
risk management scenarios.
● understand the legal Characteristics and components of insurance contracts,
underwriting principles, claims settlement process, and the regulatory framework of
the insurance industry in India.
● comprehend the different aspects of insurance business management, including
reinsurance, alternative risk transfer, investments, rate-making, coinsurance, and
important provisions of insurance policies.

Course Contents
Unit 1: Insurance and Risk (12 Hours)
Risk – Definitions of Risk, Chance of Loss, Peril and Hazard, Classification of Risk, Major
Personal Risks and Commercial Risks, Burden of Risk on Economy and Society. Insurance –
Definition of Insurance, Basic Characteristics of Insurance, Law of Large Numbers,
Characteristics of an Ideally Insurable Risk, Benefits and Costs of Insurance to Society. Life
and General Insurance: Types, Difference between Life and General insurance.

Unit 2: Insurance Principles & Risk Management (12 Hours)

Risk Management – Meaning of Risk Management, Objectives of Risk Management, Steps in
the Risk Management Process, Techniques for Managing Risk, Benefits of Risk Management.
Personal Risk Management. Enterprise Risk Management (briefly) – Concept & Benefits. Case
Studies on Management of different Personal and Business Risk to be discussed. Fundamental

12
Legal Principles – Principle of Indemnity, Principle of Insurable Interest, Principle of
Subrogation, Principle of Utmost Good Faith. Requirements of an Insurance Contract.

Unit 3: Insurance Company Operations (12 Hours)

Requirements of anInsurance Contract, Distinct Legal Characteristics of Insurance Contracts.
Components of Insurance Contracts – Declarations, Definitions, Insuring agreement,
Exclusions, Conditions, and Miscellaneous provisions. Underwriting – Underwriting Policy,
Underwriting Principles, Sources of Underwriting Information. Sales and Marketing activities
of Insurers. Claims Settlement – Basic Objective, Parties Involved & Steps in Settlement
Process. Endorsements and Riders. Deductibles – Concepts and Purpose of Deductibles.
Regulatory Framework of Insurance in India (briefly) – Insurance Legislation and IRDA.

Unit 4: Important Aspects of Insurance Business Management (9 Hours)

Reinsurance – Definitions, Reasons for Reinsurance, Types of Reinsurance – Facultative &
Treaty Reinsurance, Methods of Sharing Losses (Numerical Qs). Alternatives to Traditional
Reinsurance – Securitization of Risk and Catastrophe Bonds. Insurance and Investments – Life
Insurance Investments, Property and Casualty Insurance Investments. Rate Making – Concept,
Objectives, Rate Making Methods (Numerical Qs) – Judgement, Class and Merit Rating
Method. Coinsurance – Nature, Purpose and Problems. Other Important Provisions – Pro
Rata liability, Contribution by Equal Shares, and Primary and Excess Insurance.

Essential Readings:
1. Rejda, G. E., McNamara, M. J., & Rabel, W. H. (2021). Principles of Risk Management
and Insurance. (14th ed.). Pearson Education.
2. Mishra, M. N., & Mishra, S. B. (2016). Insurance Principles and Practice. (14th ed.). S.
Chand and Company.
Additional Readings:
1. Gupta, P. K. (2022). Insurance and Risk Management (2nd ed.). Himalaya Publishing
House.
2. Institute of Chartered Accountants of India. (2021). Diploma in Insurance and Risk
Management [Course modules].

Teaching Learning Process:

Class room lecture, Numerical Problem solving, Case study discussion, Class presentation on
the assigned topic by students individually or in group, Workshop, Tutorials, Role play.

Examination scheme and mode:

Evaluation scheme and mode will be as per the guidelines notified by the University of Delhi.
Key Words
Risk Management, Principles of Insurance, Insurance Contract, Underwriting, Reinsurance,
Rate Making and Coinsurance.

13
 DSE 4:INTERNATIONAL FINANCIAL ARCHITECTURE

Credit distribution, Eligibility and Pre-requisites of the Course

Course title & Code Credits Credit distribution of the course Eligibility Pre-requisite
criteria of the course
Lecture
(if any)

DSE 4: INTERNATIONAL 4 3 1 NIL Class XII NIL

FINANCIAL
ARCHITECTURE

Course Objective: This paper will acquaint students with the latest developments in the international
business relationships and agencies funding for country’s development.

Learning Outcomes:

After completion of this paper:

• Students shall be aware of the latest development in the international business relationships
which will enable them to make better decisions related to international business.
• Students shall have the knowledge of different international investment avenues and
opportunities available.
• Students shall be aware of various regional trading blocks, international institutions and
funding agencies.
Course Contents:

Unit 1(12 Hours)

Review of Economic Theory on International Trade: Basis for international trade; gains from trade;
distributional issues, policy instruments and their impact, political economy. Importance, nature and
scope of international relation, modes of entry into international business, internationalization process
and managerial implications. Domestic, foreign and global environments and their impact on
international business decision; Growing concern forgreen trades.

Unit 2(12 Hours)

International economic & trading environment: Regional integration and trade blocks, regionalism v/s.
multilateralism, European Union.Integration of developing countries – BRICS, ASEAN, SAARC,
SAFTA, NAFTA, G-20. World trade in goods and services – Major trends and developments; World
trade and protectionism – Tariff and non-tariffbarriers; Counter trade, UNCTAD, WTO, GATT, GATS,
TRIM, TRIPS; India’s role in facilitating trade relations under BRICS, SAARC, SAFTA, ASEAN and
to WTO.

14
Unit 3(9 Hours)
International investment: Types and significance of foreign investments, factors affecting international
investment, growth and dispersion of FDI, Cross border mergers and acquisition, foreign investment in
India-Impact of reforms on competitiveness of the Indian Firms, EURO/ADR issues, ECBs; current
economic crises in US/Europe/Asia and its impact on economic growth in India.

Unit 4(12 Hours)

Economic institutions – International Monetary Funds (IMF), World Bank (IBRD, IDA, IFC), Asian
Development Bank, BRICS Development Bank, European Bank for Reconstruction and Development,
Bilateral funding arrangements with special reference to Japan International Cooperation Agencies
(JICA), agencies of USA; Case studies on Bilateral financing arrangements of Indian projects like Delhi
Metro, Dedicated Freight corridor, Nuclear Power Plant etc.

Essential Readings:
1. Radebaugh, L.H., Sullivan, D.P., Salwan, P., & Daniels, J.D. (n.d.). International Business
Environments and Operations (15th ed). Pearson.
2. Hill, W. L., Charles, & Jain, A.K. (2008). International Business (6th ed). India: McGraw Hill.
Additional Readings:
1. Bennet, R. (1999). International Business. Financial Times. London: Pitman Publishing.

2. Vyuptakesh, S. (2003). International Business (2nd ed). India: Pearson Education.

3. Krueger, A. O. (2002). Economic Policy Reforms and the Indian Economy. OUP.

4. Velasquez, M. G. (2012). Business Ethics Concepts and Cases (7th ed.). New Delhi: PHI.

Teaching Learning Process:

Class room lecture, Case study discussion, Numerical Problem solving, Class presentation on the
assigned topic by students individually or in group, Workshop, Tutorials, Role play.

Examination scheme and mode:

Evaluation scheme and mode will be as per the guidelines notified by the University of Delhi.

Key Words
International Trade, Trade blocks, Foreign investments, ECBs, Bilateral financing, Multilateral
Institutions.

15