Syllabus
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Course Code: FM-302 Course Name: Specialisation-A: FINANCE - Foreign Exchange Management |
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| MODULE NO / UNIT | COURSE SYLLABUS CONTENTS OF MODULE | NOTES |
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| 1 | International Monetary Systems: Bretton Woods institutions and forex market structure and participants. Foreign exchange quotations: Direct and indirect. Convertibility of Rupee, current account convertibility and capital account convertibility. Exchange rate: meaning, Spread, official and free market rates, cross currency rates, forward rates. Exchange rates determination theories, factors affecting exchange rate determination, flexible vs. fixed exchange rates, Liberalized Exchange Rate Management System (LERMS). Liquidity and exchange rate stabilization policies, Relation between the interest rate, inflation and exchange rates: Fisher effect. Currency Forwards, Currency Futures and Currency Options, Currency Swaps. Currency Forwards vs. Currency Futures Contracts. Trade settlements in the spot and currency futures and forward markets. Foreign Exchange Risk and Exposure: Techniques for the Measurement and Management of Currency Risk and Exposure, parameters and constraints of Exposure Management. Forecasting Exchange Rates: Techniques of forecasting Exchange Rates. Tax treatment of Foreign Exchange gains and losses. Foreign Exchange Control in India, RBI guidelines, Salient features of FEMA. |
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