FIMMDA-NSE Debt Market Certification

FIMMDA NSE Debt Market Certification covers basic concepts of different types of debt instruments (G-secs, T-bills, CPs, Bonds and CDs) and insights into the Indian debt market, its various components, the trading mechanism of debt instruments in stock exchanges, bond valuation. The syllabus for the module has been developed by FIMMDA in consultation with NCFM

Syllabus Outline

Debt Instruments - 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).

State Government Bonds - Gross fiscal deficit of state Governments and its financing; Volume, Coupon rates and ownership pattern of State Government bonds.

Call Money Markets -Participants in the call markets; Call rates

Corporate Debt - Bond Market segments; Issue process; Issue management and Book building; Terms of a 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.

Repos - 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 and 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 and Procedural Aspects - G-Sec Act 2006; SEBI (Issue and Listing of Debt Securities) Regulations 2008 and Market Practices and Procedures