AKTU Depository Operations (BMBF305) Syllabus PDF – MBA (Banking & Financial Services) 3rd Semester

Course Objectives

1. Understand the role and functions of depositories in financial markets.
2. Examine the legal and regulatory framework governing depository operations.
3. Learn about various depository services such as dematerialization and securities settlement.
4. Explore the clearing and settlement processes involved in depository operations.
5. Understand the mechanisms in place to protect investor interests and ensure corporate governance in depository operations.

Course Content

Module I: Introduction to Depositary Operations (8 Hours)

Role and Importance of Depositary Operations; Types of Financial Assets Held by Depositories; Regulatory Framework and Industry Standards; Overview of Securities Settlement and Custody Services; Depository Ecosystem: Interaction with Exchanges, Clearing Corporations, Custodians, Registrars, and Transfer Agents

Module II: Securities Settlement and Clearing (8 Hours)

Clearing and Settlement Processes for Securities; Roles and Responsibilities of Parties Involved in the Settlement Process; Settlement Methods – Delivery versus Payment (DVP), Free of Payment (FOP), etc.; Risk Management in Securities Settlement.

Module III Custody Services and Asset Protection (8 Hours)

Safekeeping and Physical Protection of Securities; Corporate Actions and their Impact on Custody Services; Securities Lending and Borrowing; Asset Reconciliation and Valuation; ESG-related Corporate Actions and Stewardship Responsibilities; Collateral Management and Margin Processing; Artificial Intelligence Applications in Custody Operations

Module IV: Asset Servicing and Fund Administration (8 Hours)

Income Collection and Distribution; Proxy Voting and Shareholder Communication; Tax Reclamation and Withholding Tax Management; Net Asset Value (NAV) Calculation; Fund Accounting.

Module V: Compliance and Risk Management in Depositary Operations (8 Hours)

Legal and Regulatory Requirements for Depositories; Know Your Customer (KYC) and Anti-Money Laundering (AML) Compliance; Risk Assessment and Mitigation Strategies; Technology and Automation in Depositary Operations; Data Privacy Regulations and Governance.

Suggested Readings

1. Michael Simmons; Securities Operations: A Guide to Trade and Position Management.
2. David Loader; Custody and Securities Services: Global Securities Processing and Fund Services.
3. Committee on Payment and Settlement Systems (CPSS); Securities Settlement Systems: Design, Governance, and Oversight.
4. Regulatory Guidelines and Industry Reports from Relevant Authorities.
5. Online Platforms and Databases for Accessing Industry News and Research Papers. Course Outcomes and Bloom’s K-Level Mapping

Course Outcomes