1. Introduction to Corporate
Finance
Content:
This chapter provides an overview of corporate finance, explaining the need for
finance in business, types of finance (short term, medium term, and long term),
and the role of finance in business growth and sustainability.
Objective:
To understand the significance of finance in business operations and how
companies manage and allocate financial resources.
2. Sources of Corporate Finance
Content:
Discusses various sources from which companies can raise finance, including
equity shares, preference shares, debentures, loans, public deposits, and
retained earnings. It compares the advantages and disadvantages of each source.
Objective:
To familiarize students with different financial instruments and methods
companies use to raise capital.
3. Issue of Shares
Content:
Covers the process of issuing shares to raise equity capital. Topics include
types of shares (equity and preference), methods of issuing shares (public
issue, private placement), and the regulatory framework.
Objective:
To understand the steps involved in issuing shares and the legal and procedural
requirements for companies raising capital through equity.
4. Issue of Debentures
Content:
Explains the concept of debentures as a debt instrument, types of debentures
(secured and unsecured), and the procedure for issuing debentures. It also
highlights the difference between debentures and shares.
Objective:
To provide knowledge about how companies raise debt capital through debentures
and the responsibilities that come with issuing them.
5. Deposits
Content:
Discusses public and private deposits as a source of corporate finance. The
chapter explains the rules and regulations governing deposits, interest rates,
and the process of inviting and accepting deposits.
Objective:
To understand how companies raise funds through public deposits and the
regulatory environment surrounding deposit acceptance.
6. Correspondence with Members
Content:
Focuses on the types of communication and correspondence a company secretary
has with shareholders, including notices, circulars, and letters related to
general meetings, dividends, and other shareholder matters.
Objective:
To develop skills in drafting professional communication with shareholders and
understanding the legal requirements for such communication.
7. Correspondence with Debenture holders
Content:
Covers the nature of correspondence with debenture holders, including letters
regarding interest payments, redemption, conversion of debentures, and other related
matters.
Objective:
To learn how to effectively communicate with debenture holders, ensuring
transparency and adherence to legal obligations.
8. Correspondence with Depositors
Content:
Focuses on drafting correspondence related to public deposits, including
deposit receipts, renewal notices, interest payments, and repayment of
deposits.
Objective:
To gain an understanding of the communication process between a company and its
depositors, ensuring clarity and professionalism.
9. Depository System
Content:
Explains the modern depository system for holding securities electronically,
reducing paperwork, and improving the efficiency of share transfers. It covers
the role of depositories (NSDL and CDSL) and Depository Participants (DPs).
Objective:
To understand how the depository system works and its importance in
streamlining the buying, selling, and holding of securities.
10. Dividend and Interest
Content:
Discusses the concepts of dividends (profit distribution to shareholders) and
interest (payment to debenture holders and depositors). It also covers the
procedures for declaring and distributing dividends.
Objective:
To comprehend the significance of dividends and interest as a source of income
for investors and the procedures companies follow to distribute them.
11. Financial Market
Content:
Provides an overview of the financial markets, including the money market and
the capital market. It explains the role of financial markets in mobilizing
funds, providing liquidity, and supporting investment.
Objective:
To gain insights into how financial markets operate and their role in
supporting business finance and investment activities.
12. Stock Exchange
Content:
Discusses the functioning of stock exchanges, the role of stock brokers,
listing of securities, and stock market indices. It highlights the importance
of the stock exchange in facilitating the buying and selling of securities.
Objective:
To understand the role of the stock exchange in the economy, its importance for
companies and investors, and how it contributes to capital formation.