Capital market offers great employment potential for business management graduates. The financial practices in capital market are part of behavioural finance. The participants in capital market operations are investment bankers, stock brokers and capital market regulatory bodies. The clients of these institutions are individual as well as corporate investors. The placements in these institutions are mainly done through campus interviews. The placement records for the past many years reveal that the frequent visitors to the business school campuses are financial institutions like banks, investment bankers, consulting firms, brokers, non-banking financial companies, insurance companies etc. Among these institutions a major potential employer till recently was the investment bankers. The positions in these institutions vary from a marketing executive to funds manager, operations division head etc. The CTC offered by financial institutions, especially the investment bankers, are much higher than that offered in the other sectors.
The capital market institutions offer employment opportunities as dealers, research analysits, funds manager, marketing executives, wealth manager, financial advisor etc. Experienced hands can aspire for the post of branch head, regional head, vice president etc. A student pursuing for MBA/PGDM who select finance as their major and marketing as the second major, gets opportunities to be placed in capital market institutions as marketing executives or executives in front or back office. Under the finance elective they have to opt for papers such as Financial Services and Systems, Financial Market and Institutions, Investment Banking, Security Analysis and Portfolio Management, Financial and Commodity Derivatives, Risk Management, Corporate Valuations, Equity Research etc. Among these the highest placements are in marketing field. The employability will increase if the students could pursue along with their MBA/PGDM programme courses like IRDA training and pass the qualifying examination so that they can get placement in institutions like stock broking firms, wealth management firms, insurance companies etc. Simultaneously they can pass the mutual funds examination conducted by AMFI so that they can become financial advisors in a wealth management company. They have also opportunity to take up the position as dealer in a stock broking firm if they pass the Financial Market Examinations like NCFM modules conducted by National Stock Exchange (NSE). In this process, the student can pass capital market, derivatives and commodity modules of NCFM. These examinations are conducted online and the course materials and mock tests are available in NSE’s website (http://www.nseindia.com/)
Those who want to work as financial advisor or wealth manager independently or in a financial institution can opt for Management of Financial Services, Banking, Investment Banking, Security Analysis and Portfolio Management, Insurance etc. as major and marketing as second major plus the NCFM (Modules: Financial Market-Beginners, Security Market- Basics, FIMDA-NSE Debt Market Basics, Commodity Market, AMFI-Mutual Funds-Basics and Advisors, Modules of Financial Planning Standards Board of India-Certified Financial Planner and Investment Banking Analyst Modules), IRDA Certification and the TRP (Tax Return Preparer) of Income Tax Department. The details of TRP scheme can be obtained from the website of Income Tax Department. (http://www.incometaxindia.gov.in/). All these examinations are conducted online and can be passed simultaneously along with the MBA/PGDM course.
Students aspiring for a position in Investment Banks and Credit Rating Agencies should be proficient in research and analysis. They can choose the elective papers in finance such as Investment Banking, Security Analysis and Portfolio Management, Equity Research, Valuations, Financial Modeling, Derivatives and Risk Management, Treasury Management etc. They may also appear for the NCFM examinations covering the modules Capital Market, Investment Banking, Equity and Commodity Derivatives, Fixed Income Securities, Mutual Funds module conducted by AMFI etc.
Stock broking firms also provide employment opportunities to students completing the post graduation programme in management (MBA/PGDM), The job profile in broking firms can be front office functions as well as back office. However, one cannot manage the trading desk with out passing the mandatory qualifying examination prescribed by SEBI. Therefore passing NCFM-Capital Market and Derivatives module is essential for handling trading activities. Other front office functions are insurance sale, mutual fund sale etc. IRDA examination on insurance and AMFI examination on mutual funds will be helpful in these two areas. However, the pay package is too low compared to other financial institutions. Besides, the financial markets, especially capital market, is always exposed to the threat of job cuts consequent to melt downs. Therefore, a student opting this route should consider this aspect also while choosing his/her career.
Another matter of concern is about the institution conducting courses specific to capital market. All business schools are offering capital market, derivatives, Investment Management etc. as electives in the finance stream. However, there are no business schools which offer capital market as a course; whereas Indian Institute of Capital Market, Mumbai offers a one year PG Diploma in Security Markets. The course is intended to those have at least two years of experience in the relevant area. They are also conducting 6 months programme on Financial Engineering and Risk Management. The students passing out from these institutions have good employment opportunities since they are having tie up with reputed financial institutions for internship. Besides, the institute is run by Unit Trust of India, a public sector financial institution. IIMs also offer capital markets as electives. While selecting the institution, the students should check the infrastructure facilities like online trading facility, method of teaching, exposure of faculty to capital market and investment banking, institutional tie-ups etc. Above all the students aspiring a position in capital market institutions should possess excellent analytical skill, ability to make quick decisions, capacity to take risk and updated information.
The capital market institutions offer employment opportunities as dealers, research analysits, funds manager, marketing executives, wealth manager, financial advisor etc. Experienced hands can aspire for the post of branch head, regional head, vice president etc. A student pursuing for MBA/PGDM who select finance as their major and marketing as the second major, gets opportunities to be placed in capital market institutions as marketing executives or executives in front or back office. Under the finance elective they have to opt for papers such as Financial Services and Systems, Financial Market and Institutions, Investment Banking, Security Analysis and Portfolio Management, Financial and Commodity Derivatives, Risk Management, Corporate Valuations, Equity Research etc. Among these the highest placements are in marketing field. The employability will increase if the students could pursue along with their MBA/PGDM programme courses like IRDA training and pass the qualifying examination so that they can get placement in institutions like stock broking firms, wealth management firms, insurance companies etc. Simultaneously they can pass the mutual funds examination conducted by AMFI so that they can become financial advisors in a wealth management company. They have also opportunity to take up the position as dealer in a stock broking firm if they pass the Financial Market Examinations like NCFM modules conducted by National Stock Exchange (NSE). In this process, the student can pass capital market, derivatives and commodity modules of NCFM. These examinations are conducted online and the course materials and mock tests are available in NSE’s website (http://www.nseindia.com/)
Those who want to work as financial advisor or wealth manager independently or in a financial institution can opt for Management of Financial Services, Banking, Investment Banking, Security Analysis and Portfolio Management, Insurance etc. as major and marketing as second major plus the NCFM (Modules: Financial Market-Beginners, Security Market- Basics, FIMDA-NSE Debt Market Basics, Commodity Market, AMFI-Mutual Funds-Basics and Advisors, Modules of Financial Planning Standards Board of India-Certified Financial Planner and Investment Banking Analyst Modules), IRDA Certification and the TRP (Tax Return Preparer) of Income Tax Department. The details of TRP scheme can be obtained from the website of Income Tax Department. (http://www.incometaxindia.gov.in/). All these examinations are conducted online and can be passed simultaneously along with the MBA/PGDM course.
Students aspiring for a position in Investment Banks and Credit Rating Agencies should be proficient in research and analysis. They can choose the elective papers in finance such as Investment Banking, Security Analysis and Portfolio Management, Equity Research, Valuations, Financial Modeling, Derivatives and Risk Management, Treasury Management etc. They may also appear for the NCFM examinations covering the modules Capital Market, Investment Banking, Equity and Commodity Derivatives, Fixed Income Securities, Mutual Funds module conducted by AMFI etc.
Stock broking firms also provide employment opportunities to students completing the post graduation programme in management (MBA/PGDM), The job profile in broking firms can be front office functions as well as back office. However, one cannot manage the trading desk with out passing the mandatory qualifying examination prescribed by SEBI. Therefore passing NCFM-Capital Market and Derivatives module is essential for handling trading activities. Other front office functions are insurance sale, mutual fund sale etc. IRDA examination on insurance and AMFI examination on mutual funds will be helpful in these two areas. However, the pay package is too low compared to other financial institutions. Besides, the financial markets, especially capital market, is always exposed to the threat of job cuts consequent to melt downs. Therefore, a student opting this route should consider this aspect also while choosing his/her career.
Another matter of concern is about the institution conducting courses specific to capital market. All business schools are offering capital market, derivatives, Investment Management etc. as electives in the finance stream. However, there are no business schools which offer capital market as a course; whereas Indian Institute of Capital Market, Mumbai offers a one year PG Diploma in Security Markets. The course is intended to those have at least two years of experience in the relevant area. They are also conducting 6 months programme on Financial Engineering and Risk Management. The students passing out from these institutions have good employment opportunities since they are having tie up with reputed financial institutions for internship. Besides, the institute is run by Unit Trust of India, a public sector financial institution. IIMs also offer capital markets as electives. While selecting the institution, the students should check the infrastructure facilities like online trading facility, method of teaching, exposure of faculty to capital market and investment banking, institutional tie-ups etc. Above all the students aspiring a position in capital market institutions should possess excellent analytical skill, ability to make quick decisions, capacity to take risk and updated information.
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