Capital Market Education श्री महावीराय नमः

Kalpataru Institute of Capital Market (KICM)

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Kalpataru Certified Market Professional (KCMP)

Capital Market Education

It is an integrated course which provides the complete knowledge about capital market. It is beneficial who are interested to make their career in financial and corporate world.

Module 1 - Foundation Program on Stock Market  
Module 2 - Basic Program of Derivatives and Option Strategies Institute in Capital Market Education Bhopal
Basics of Derivatives
  • Evolution of derivatives Market
  • Indian derivatives Market
  • Market participants
  • Types of derivatives market
  • Significance of derivatives
  • Types of Indices
  • Index management
  • Applications of Index
Introduction to Options
  • Basics of options
  • Payoff charts for options
  • Basics of options pricing & option greeks
  • Fundamentals of options pricing
  • Overview of binomial
  • Basics of option greeks
  • Uses of options
Trading Systems
  • Trading Systems, corporate hierarchy, order types and conditions
  • Selection criteria of Stock for trading
  • Selection criteria of Index for trading
  • Adjustments for Corporate Actions
  • Position Limits
Legal and Regulatory Environment
  • Securities Contract (Regulation) Act, 1956
  • Securities and Exchange Board of India Act, 1992
  • Important rules and regulation
Sales Practices and Investors Protection Services
  • Importance of profiling clients in sales process
  • Importance of KYC
  • Documents required by the investors to trade in Derivatives contract
  • Best practices in derivatives sales
  • Investors Grievance Mechanism
  Introduction to Forward and Futures
  • Introduction to Forwards
  • Payoff Charts for Futures contract
  • Futures pricing
  • Cash and carry / Non-arbitrage model for futures pricing
  • Expectancy model of futures pricing
  • Concept of convergence of cash and futures prices
  • Basic differences in Commodity, Equity
  • Uses of futures
  • Role of different players in futures market
  • Use of futures contract as an effective instrument for managing
  • Strategies for hedging, speculation and arbitrage in futures market
  • Beta analysis.
Option Trading Strategies
  • Option spreads and their payoff charts
  • Straddle: market view and payoff charts
  • Strangle: market view and payoff charts
  • Covered Call: market view and
  • Protective Put: market view and payoff charts
  • Collar: market view and payoff charts
  • Butterfly spread: market view and payoff charts
  • Clearing Mechanism and computation of open positions
  • Settlement Mechanism for stock and index futures and options
  • Understanding margining and mark to market under SPAN
  • Risk Management features and position limits
Accounting and Taxation
  • Accounting of Futures and Options contracts
  • Taxation of Derivative transaction in securities
Module 3 - Basic Program on Commodity Market Institute in Capital Market Education Bhopal
Commodity Exchanges

Commodity Derivative Market

NCDEX Platform
  • Structure of ncdex
  • Spot price polling
  • Exchange membership
  • Risk management
  • Clearing and settlement system
Instruments Available for Trading
  • Instruments available for trading
  • Introduction to futures
  • Introduction to options
  • Basic payoffs
  • Payoff for futures- payoff for options
  Role of Commodity Exchange

Pricing Commodity Futures

Commodity Futures
  • Hedging
  • Speculation
  • Arbitrage.
  • Futures trading system
  • Entities in the trading system
  • Commodity futures trading cycle
  • Order types and trading parameters
  • Margins for trading in futures
Module 4 - Basic Program on Currency / FOREX Market Institute in Capital Market Education Bhopal
Introduction to Currency Markets
  • Foreign exchange markets
  • Major currency pairs
  • Overview of international currency markets
  • Basics and Peculiarities of currency markets in India
  • Settlement or value date
  • Over-the-Counter (OTC) forward market
  • Exchange rate arithmetic- cross rate
  • Impact of market economics on currency prices
  • Economic indicators.
Foreign Exchange Derivatives
  • Derivative products and features
  • Growth drivers of derivatives
  • Market players in the foreign exchange market
  • Key economic functions of derivatives
  • Exchange-Traded Vs. OTC derivatives.
Exchange Traded Currency Futures

Spot price
  • Currency futures
  • Sutures price
  • Contract cycle
  • Value date/Final settlement date
  • Expiry date
  • Contract size
  • Initial margin
  • Marking-to-market
  • Rationale behind currency futures
  • Standard items in a futures contract
  • Futures and forward contracts
  • Advantages of futures contracts
  • Limitations of futures contracts
  • Interest rate parity and pricing of currency futures.
Strategies Using Currency Futures
  • Speculation in futures markets
  • Hedging using currency futures
  • Trading spreads using currency futures
  • Concept of arbitrage and Arbitrage opportunities under various conditions.
Trading in Currency Futures
  • Contract specification for currency futures
  • Trading parameters
  • Tenors of futures contract
  • Expiry date
  • Settlement price
  • Entities in the trading system
  • Types of orders
  • Concept of Mark-to-Market (MTM)
  • Position limits
  • Allowable open position limits for members trading in currency futures
  • Monitoring & enforcement of position limits in the currency futures market
  • Surveillance systems and procedures of exchanges.
  Clearing, Settlement and Risk Management in Currency Futures
  • Clearing entities
  • Clearing mechanism
  • Open positions and obligations of clearing members
  • Settlement mechanism
  • MTM settlement
  • Final settlement
  • Risk management measures
  • Concept of margin requirements
  • Initial margin
  • Portfolio based margin
  • Calendar spread margin
  • Extreme loss margin
  • Liquid net worth
  • Real time computation
  • Process of margin collection by Clearing Corporations.
Exchange Traded Currency Options
  • Options
  • Call and put option
  • Bought and sold option
  • Option premium
  • Futures and options
  • European vs. American option
  • Moneyness of an option
  • Option pricing and option Greeks
  • Option pricing methodology
  • Option pay offs
  • Option strategies
  • Clearing, settlement and risk management for currency options
  • Initial margin
  • Extreme loss margin
  • Net option value
  • Calendar margin.
Regulatory Framework for Currency Derivatives
  • Securities and Exchange Board of India Act, 1992
  • RBI-SEBI Standing Technical Committee on Exchange Traded Currency and Interest Rate Derivatives
  • Foreign Exchange Management Act, 1999
  • RBI notification ‘Currency Futures (Reserve Bank) Directions, 2008
  • RBI Circular, ‘Guidelines on trading of Currency Futures in Recognised Stock / New Exchanges’
  • Eligibility criteria for membership of currency derivatives exchanges
  • SEBI Codes of Conduct for brokers and sub-Brokers
  • Arbitration mechanism at exchanges
Module 5 - Basic Program on Mutual Fund Institute in Capital Market Education Bhopal
Mutual Funds
  • Introduction
  • Role of the amc
  • An nfo
  • Nav
  • Loads
  • Exit load
  • Entry load
Fund Schemes
  • Open ended schemes
  • Close ended schemes
Fund Options
  • Growth option
  • Dividend option
  • Dividend reinvestment option
Portfolio Management Schemes (PMS)
  Types of Funds
  • Equity Funds
    • Arbitrage Funds
    • Multicap Funds
    • Quant Funds
    • P / E Ratio Fund
    • International Equities Fund
    • Growth Schemes
    • ELSS
  • Funds of Fund
    • Index Fund
    • Gold ETF

Diversified Large Cap Funds

Regulatory AMFI

Portfolio Turnover

  Debt Funds
  • Fixed Maturity Plans
  • Capital Protection Funds
  • Gilt Funds
  • Balanced Funds
  • MIPs
  • Child Benefit Plans
Investment Plans
  • Systematic investment plan (SIP)
  • Systematic Transfer Plan (STP)
  • Systematic Withdrawal Plan (SWP)
  • Lamsum

Module 6 - Advance Fundamental Analysis and Equity Valuation Institute in Capital Market Education Bhopal
An Introduction Fundamental Analysis Relevant for Investing
  • Efficient Market Hypothesis (EMH).
  • Steps in Fundamental Analysis.
The Basics Concept of "Time Value of Money"

Interest Rates and Discount Factors
  • Opportunity Cost
  • Risk-free Rate
  • Equity Risk Premium
  • The Beta
  • Risk Adjusted Return (Sharpe Ratio)
Understanding Financial Statements

Financial Statements
  • Balance sheet
  • Income statement
  • Cash Flow Statement
  • Financial Ratio
  Valuation Methodologies

Top-Down Valuation (EIC Analysis)
  • Economy
  • Industry
  • Company
Price / Earnings Ratio

Price / Book Value Ratio

Special cases of Valuation
  • IPOs
  • Financial Services firms
  • Net interest margin (NIM)
  • Acquisition Valuation
Module 7 - Market Operation, Risk Management and Back Office Operations
Module 8 - Equity / Derivative / Commodity / Currency Market Live Trading