Meghnad Desai Academy of Economics

Our visit to the National Stock Exchange (NSE) was truly eye-opening, as it guided us through a spectrum of financial concepts, from the basics to advanced market dynamics. Starting with fundamentals, Mr. Raza introduced us to major stock indices like Nifty and Sensex, which track the performance of top companies. Learning about these indices gave us a practical understanding of market trends and how they reflect broader economic changes. We also explored index funds, as well as the distinctions between shares, bonds, government securities, equity, and debt—essential building blocks in finance.

As we progressed, Mr. Raza introduced us to more complex topics such as futures, options, and derivatives. He further explained the differences between large-cap, mid-cap, and small-cap stocks, helping us see how these classifications impact investment strategies. One especially fascinating part of the session was hearing about the early history of stock trading, when brokers used hand signals to communicate before digital platforms existed. This led us to the hands-on segment of the session, where we learned to efficiently navigate the NSE website, gaining real-time insights into the exchange’s operations.

This introduction to financial principles laid a strong foundation for the next session with Dr. Tirthankar, who expanded our understanding of high-speed and high-tech trading strategies.

Building on what we learned with Mr. Raza, Dr. Tirthankar’s session focused on High-Frequency Trading (HFT) and how technology has transformed the financial landscape. He explained how powerful computers execute thousands of trades within fractions of a second in HFT, a concept that connected well with the technical knowledge we had just gained. This discussion also opened our eyes to various career opportunities within HFT, blending finance with advanced computing.

Dr. Tirthankar then introduced us to the Limit Order Book, explaining how limit orders allow traders to buy or sell securities at specific prices or better, reinforcing our understanding of strategic trading tools. By covering how buy and sell limit orders work, he gave us deeper insights into practical trading methods.

To round off the day, Dr. Tirthankar discussed the growth of trading in India, highlighting the incredible daily trading volume: over 14 billion derivatives are traded, which signals exponential growth in market participation. This data illustrated how finance in India is expanding, giving us a broader perspective on our economy's potential.

Our visit to the NSE was a transformative learning experience, linking fundamental principles with real-world applications and advanced trading technology, equipping us with both the theoretical knowledge and practical skills essential for navigating the financial world.

On September 21, 2024, we had the privilege of hosting an insightful seminar on Credit Risk Management (CRM) led by Nishtha Mehta at the Meghnad Desai Academy of Economics. The session delved deep into the intricacies of CRM, emphasizing its crucial role in safeguarding the financial stability and profitability of institutions.

Nishtha expertly covered the fundamentals of credit risk, including the different types—such as default risk and counterparty risk—and the importance of a robust CRM framework. She also discussed the latest methodologies in credit risk assessment, blending qualitative and quantitative approaches, and introduced key modeling techniques like Probability of Default (PD), Loss Given Default (LGD), and Exposure at Default (EAD).

The seminar also explored strategies for effective credit risk monitoring, reporting, and mitigation, with a focus on industry best practices and the impact of regulatory frameworks like Basel III and the Dodd-Frank Act. Nishtha also took the time to address numerous student queries, providing clarity and further insights on the topic.

This seminar was a valuable learning experience for all attendees, providing actionable insights into the challenges and strategies essential for managing credit risk in today's dynamic financial environment. We're grateful to Nishtha Mehta for sharing her expertise and contributing to our ongoing commitment to academic and professional excellence.

On the 5th of September, 2024, Lord Meghnad Desai visited MDAE, a visit made even more special by the fact that it coincided with Teachers' Day. He spent several hours engaging with the enthusiastic MDAE batch of 2024-25, who eagerly asked him questions on a wide range of topics, from Bollywood and the rise of AI to his experience as a naturalised British citizen. The interaction began with Lord Desai sharing his approach to understanding the world through the lens of politics and economics. He highlighted how being curious and viewing events through an economic perspective can deepen one's grasp of economic theories and their practical application. This, he noted, is also crucial when selecting a thesis topic, as choosing something truly interesting and meaningful fuels genuine curiosity and enriches the research process.