Duration : 120 minutes
No. of questions : 60
Maximum marks : 100, Passing marks : 50 (50%); There is negative marking for incorrect answers.
Certificate Validity : For successful candidates, certificates are valid for 5 years from the test date.
Rs. 1,500/- (Rupees One Thousand Five Hundred only).
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.
CORPORATE DEBT: BONDS
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.
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 & 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 & 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 & TERM STRUCTURE OF INTEREST RATES
Yield Curve; Bootstrapping; Alternate methodologies to estimate the yield curve; Theories of the term structure of interest rates.
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 forward rate agreements; Interest rate swaps.