COMPANY PROFILE

INTRODUCTION OF STATE BANK OF INDIA

The bank traces its ancestry back through the Imperial Bank of India to the founding in 1806 of the Bank of Calcutta, making it the oldest commercial bank in the Indian Subcontinent. The Government of India nationalised the Imperial Bank of India in 1955, with the Reserve Bank of India taking a 60% stake, and renamed it the State Bank of India. In 2008, the Government took over the stake held by the Reserve Bank of India. State Bank of India (SBI) is the largest bank in India. SBI provides a range of banking products through its vast network in India and overseas, including products aimed at NRIs. The State Bank Group, with over 16000 branches, has the largest branch network in India. With an asset base of $250 billion and $195 billion in deposits, it is a regional banking behemoth. It has a market share among Indian commercial banks of about 20% in deposits and advances, and SBI accounts for almost one-fifth of the nations loans. The State bank of India is 29th most reputable company in the world according to forbes.

Type Founded Headquarters Key people Industry Products

Public (BSE, NSE:SBI) & (LSE: SBID) Calcutta, 1806 (as Bank of Calcutta) Corporate Centre, Madam Cama Road, Mumbai 400 021 India Om Prakash Bhatt, Chairman Insurance, Banking, Capital Markets and allied industries Loans, Credit Cards, Savings, Investment vehicles, SBI Life (Insurance) etc. Rs.600 billion (2009)
Rs. 12500 billion (as of 31st March 2008)

Revenue Total assets

SBI & ITS GROUP COMPANIES

COMPANIES

LOGO

SBI Capital Markets Ltd

SBI Mutual Fund (A Trust)

SBI Factors and Commercial Services Ltd

SBI DFHI Ltd

SBI Cards and Payment Services Pvt Ltd

SBI Life Insurance Co. Ltd Banc assurance (Life Insurance)

SBI Canada

SBI CAP SECURTIES

SBICAP undertakes merchant banking activities, advisory services, project appraisal, credit syndication and securities broking. SBICAPs current focus is on infrastructure project advisory and syndication mandates, particularly in sectors, such as, urban infrastructure and power, which are reckoned as the growth drivers. The other focus areas are public issues of equity, book-building issues, debt placements, broking, and sales and distribution. During the year, SBICAPs forged ahead in issue management, project advisory and structured finance, sales & distribution. It focused on infrastructure project advisory and syndication mandates, particularly in the energy sector, which is reckoned as the critical growth driver in the growth of the economy. On the international front SBICAPs bagged an infrastructure (water) advisory assignment from the Ministry of National Economy, Oman and was an integral part of the team effort for SBIs first acquisition of a bank overseas. It was also associated with SBI for providing advisory in respect of participation of Societe Generale Asset Management, France in SBI Mutual Funds. It handled seven public issues out of the thirty four issues, which hit the primary market during the period. The Company recorded an improved financial performance during the year with gross income amounting to Rs.175.06 crore as against Rs.142.75 crore in the previous year, a y-o-y growth of approx. 23%. PAT of Rs.88.12 crore as against Rs. 63.23 crore in the last year shows a y-o-y growth of approx.40%..

CONCEPT OF SHARE TRADING IN INDIA

SECURITIES AND EXCHANGE BOARD OF INDIA (SEBI)

Agency overview
Formed Headquarters Employees Agency executive Website 12 April 1992 Jurisdiction Government of India

Mumbai, Maharashtra 643 (2011) U. K. Sinha, Chairman www.sebi.gov.i

History The securities and exchange board of India was constituted in 1988 under a resolution of government of India. It was later made statutory body by the SEBI act 1992.according to this act, the SEBI shall constitute of a chairman and four other members appointed by the central government. With the coming into effect of the securities and exchange board of India act, 1992 some of the powers and functions exercised by the central government, in respect of the regulation of stock exchange were transferred to the SEBI. It was formed officially by the Government of India in 1992 with SEBI Act 1992 being passed by the Indian Parliament. SEBI is headquartered in the business district of Bandra Kurla Complex complex in Mumbai, and has Northern, Eastern, Southern and Western regional offices in New Delhi, Kolkata, Chennai and Ahmedabad. Controller of Capital Issues was the regulatory authority before SEBI came into existence; it derived authority from the Capital Issues (Control) Act, 1947. Initially SEBI was a non statutory body without any statutory power. However in 1995, the SEBI was given additional statutory power by the Government of India through an amendment to the Securities and Exchange Board of India Act 1992. In April, 1998 the SEBI was constituted as the regulator of capital markets in India under a resolution of the Government of India. The SEBI is managed by six members, i.e. By the chairman who is nominated by central government & two members, i.e. officers of central ministry, one member from the RBI & the remaining two are nominated by the central government. The office of SEBI is situated at Mumbai with its regional offices at Kolkata, Delhi & Chennai.

Who is a Depository Participant? A Depository Participant (DP) is an agent of the depository through which it interfaces with the investor and provides depository services. Public financial institutions, scheduled commercial banks, foreign banks operating in India with the approval of the Reserve Bank of India, state financial corporations, custodians, stock-brokers, clearing corporations /clearing houses, NBFCs and Registrar to an Issue or Share Transfer Agent complying with the requirements prescribed by SEBI can be registered as DP. Banking services can be availed through a branch whereas depository services can be availed through a DP. As on September 30, 2008, a total of 711 DPs (266 NSDL, 445 CDSL) are registered with SEBI.

INTRODUCTION TO DEPOSITORY The Depositories Act The Depositories Act, 1996, ushered in an era of efficient capital market infrastructure, improved investor protection, reduced risks and increased transparency of transactions in the securities market. It also immensely benefited the issuer companies, in terms of reduced costs and the effort expended in managing their shareholder populace. Perhaps, no other single act other than the Depositories Act has had such profound all round impact on every single stakeholder in the Indian capital markets. This legislation envisaged multiple depositories in India to ensure benefits of competition for the users of the depository system. The Depositories Act which facilitated establishment of depositories (like CDSL) in India sought to effectively curb irregularities in the capital market, and protect the interests of the investors, and paved a way for an orderly conduct of the financial markets through free transferability of securities with speed, accuracy, transparency etc. Due to the introduction of the depository system, the investors are able to enjoy many benefits like free and instant transferability in a secured manner at lower costs, free from the problems like bad deliveries, odd-lots etc. Today the tradable lot is reduced to one unit hence even a common man is able to invest money in one equity share or bond or debenture. The investor is able to save a lot on account of stamp duty as government has exempted stamp duty on transfer of securities at present. Investors are also spared from the problems of preserving the securities held in physical form.

What is a Depository? The Depositories Act defines a depository as a company formed and registered under the Companies Act, 1956 and which has been granted a certificate of registration under subsection (1A) of section 12 of Securities and Exchange Board of India Act, 1992. The main function of a depository is to dematerialize securities and enable their transactions in book entry form. As per The Bank for International Settlements (BIS), depository is a facility for holding securities which enables securities transactions to be processed by book entry. Physical securities may be immobilized by the depository or securities may be dematerialized (so that they exist only as electronic records). In simple terms depository is an organization where securities of an investor are held in electronic form.

Number of Depositories in India

At present two Depositories:1.) National Securities Depository Limited (NSDL)

NSDL is a public limited company incorporated under the Companies Act, 1956. Four renowned institutions participate in it. Unit Trust of India (UTI), Industrial Development Bank of India (IDBI), National Stock Exchange of India (NSE), State Bank of India (SBI).UTI is the largest mutual fund of India and IDBI is the largest development bank, NSE is the largest stock exchange of India and SBI is the largest commercial bank of India having clearing facility. HDFC and Citibank also share in this system. NSDL is managed by Board of directors headed by a managing director. It is governed by its bye-laws and its business operations are regulated by business rules. NSDL interfaces with the investors through players or business partners. Constituents of depository compromise of clearing corporation, brokers, clearing member, registrar and transfer agents, company or issuer, stock exchange, bank depository participant and investors. All are electronically linked to the main depository for the settlement of trades and to perform a daily reconciliation of all accounts held with NSDL.

2.)

Central Depository Services (India) Limited (CDSL)

Second agency is CDSL - Central Depository Service (India) Limited. Main functions of this agency are centralized database and accounting. Major participant in CDSL are LIC, GIC and BSE. This agency is set up with the object to keep in mind to accelerate growth of scripless trading, with major thrust of individual participation and creating competitive environment, responsible to the users interests and demands to enhance liquidity. CDSL aims to retain the entire data of the investors in the central database of CDSL.

NSDL and CDSL essentially perform the following functions through their various participants 1. Enable surrender and withdrawal of securities to and from the depository. 2. Maintain investor holdings in the electronic form. 3. Effect settlement of securities traded on the Exchanges. 4. Carry out settlement of trades not done on the Stock Exchanges i.e. Off Market Trades. 5. Coordination of benefits accruing on the depository accounts of investors.

CORPORATE PROFILE

MISSION OF SBI CAPITAL SECURETIES: Their mission is to be a leading, preferred service provider to our customer, and they aim to achieve this leadership position by building an innovative, enterprising, and technology driven organization which will set the highest standards of service and business ethics. OVERVIEW: SBICAP Securities Ltd (SSL) is a 100% subsidiary of SBI Capital Markets Ltd which is one of the oldest players in the Indian Capital Market and has a dominant position in the Indian primary capital markets. SBI Capital Markets Ltd. commenced broking activities in March 2001 to fulfill the secondary market needs of Financial Institutions, FIIs, Mutual Funds, Banks, Corporate, High Net worth Individual, Non-residential Investors and Retail domestic investors. SBICAP Securities Ltd. (SSL) is a company, which has been formed to take over the broking operations of SBI Capital Markets Ltd. SSL commenced operations in the first quarter of financial year of 2006-2007 Services currently offered include Institution Equity, Retail Equity, Derivatives, Broking, Depository Participant services, E-Broking. SSL is registered with the Securities Exchange Board of India for its various services, a summary of which is as under: Registered with/as SEBI -Stock Broker-NSE SEBI- Stock Broker BSE SEBI- Stock Broker-NSE- F&O SEBI- Depository Participant Registration no. INB231052938 INB011053031 INF231052938 IN-DP-CDSL-370-2006

SSL, which commenced its operations in June 2006, is a broking company offering equity broking services to retail and institutional clients both in the Cash as well as in the Futures and Options segments. It is also engaged in sales & distribution of other financial products like Mutual Funds, etc. The Company has launched e-broking services to the clients of SBI and Associate Banks. SSL has 48 branches and 18 franchisees and offers Demat, e-broking, e-IPO and e-MF services to both retail and institutional clients.

SBICAPSEC is the 100 per cent subsidiary of SBI Capital Markets Limited, which has a share holding of 86.16 per cent by State Bank of India and Asian Development Bank, which owns 13.84 per cent

SBI CAPITAL MARKETS LIMITED (SBICAPS) is India's leading investment bank and project advisor, assisting domestic companies fund-mobilization efforts for last many years.

Foreseeing the changing needs of clients in a rapidly opening economy, over the years, we have evolved an array of advisory services in almost all sectors of the economy. We are known for professionalism and business ethics and provide a full range of Investment, Advisory and Financial Services under one umbrella. A pioneer in privatization in India, we have established ourselves as a leader in providing financial and advisory services in the core sector and infrastructure industries

MILESTONES SBICAPS Ventures Limited (SVL) SBICAPS Ventures Limited (SVL), a USD 100 million Venture Capital Fund, jointly with SBI Holdings Inc. (Softbank), Japan has invested USD 8 million in two companies and a number of investment proposals are being examined. The scope of the fund covers all sectors except real estate and financial services. SBICAP (UK) Ltd. SBICAP (UK) Ltd., which is only in its second full years operation, has booked revenue of Rs. 2.14 crores up to March 2009 as against Rs. 1.51 crores as on March 2008. The company has posted a net profit of Rs.0.44 crores in March 2009, as against a loss of Rs.0.36 crores last year due to diversification of income streams.

SBICAP TRUSTEE Co Ltd. (STCL) SBICAP TRUSTEE Co Ltd. (STCL) has commenced security trustee business with effect from1st August 2008. The companys gross income upto31.03.2009 is Rs. 0.44 crores and net profit is Rs.0.14 crores.

PRODUCT & SERVICES OF SBICAP SECURITIES

Equity Derivatives Mutual Fund IPO Depositories

MANAGEMENT:

Mr. S. Vishvanathan - Chairman Mrs. Swati Desai - Managing Director Shri S H Visweswariah - Whole time Director Dr Manoj Vaish - Independent Director Shri R. Sridharan - non-Executive Director

Our Mission - To provide Credible, Professional and Customer Focused world-class investment banking services. Our Vision - To be the best India based Investment Bank.

Dematerialization

Meaning of Dematerialization

Dematerialization is a process by which physical certificates of an investor are converted into electronic form and credited to the account of the depository participant. Dematted securities do not have any certificate numbers or distinctive numbers and are dealt only in quantity, i.e., the securities are replaceable. Investors can dematerialize only those certificates that are already registered in their names and are in the list of securities admitted for dematerialization. These are: shares, scrips, stocks, bonds, debentures, stock or other marketable securities of a like nature in or of any incorporated company or other body corporate, units of mutual funds, rights under collective investment schemes and venture capital funds, commercial paper, certificate of deposit, securities debt, money market instruments and unlisted securities, underlying sharing of American Depository Receipts and Global Depository Receipts issued to non-resident holders. Dematerialization is the process of converting physical holdings into electronic form with the depository wherein the share certificates are shredded and corresponding entry of the number of shares is done in the opened with the depository. The securities held in dematerialized form are fungible; that is, they do not bear any notable feature like distinctive number, folio number or certificate number. Once shares get dematerialized, they lose their identity in terms of share certificate distinctive numbers and folio numbers.

Object Of Demat System India has adopted this system in which book entry is done electronically. It is the system where no paper is involved. Physical form is extinguished and shares or securities are held in electronic mode. Before the introduction of the depository system by the Depository Act, 1996, the process of sale, purchase and transfer of shares was a huge problem and the safety perspective was zero.

Securities that can be dematerialized 1. Shares, scrips, stocks, bonds, debentures, debenture stock or other marketable securities of similar nature of any incorporated company or other body corporate, including underlying shares of ADRs and GDRs. 2. Units of mutual funds, rights under collective investment schemes and venture capital funds, commercial paper, certificate of deposit, securitised debt, money market instruments, government securities, national saving certificates, kisan vikas patra and unlisted securities.

Process of Dematerialization A holder of eligible securities in the depository system may get his physical holdings converted into electronic form by making a request through the DP with whom he has his beneficiary account.

Prerequisites for Dematerialization Request 1. The registered holder of the securities should make the request. 2. Securities to be dematerialized must be recognised by NSDL/CDSL as eligible. In other words, only those securities whose ISIN has been activated by NSDL/CDSL, can be dematerialized in the NSDL/CDSL system. 3. Only after such connectivity is established, the securities of that company/Issuer are recognised to be "available for dematerialization" in the NSDL/CDSL system. 4. The holder of securities should have a beneficiary account in the same name as it appears on the security certificates to be dematerialized. 5. The request should be made in the prescribed dematerialization request form.

Steps involved in Dematerialization Process

1. Client/ Investor submits the DRF (Demat Request Form) and physical certificates to DP. DP checks whether the securities are available for demat. Client defaces the certificate by stamping ' Surrendered for Dematerialization'. DP punches two holes on the name of the company and draws two parallel lines across the face of the certificate. 2. DP enters the demat request in his system to be sent to NSDL/CDSL.

Investor

1
2A

DP
2 4

R&T Agent

NSDL/ CDSL

2. NSDL/CDSL records the details of the electronic request in the system and forwards the request to the R&T Agent. 3. R&T Agent, on receiving the physical documents and the electronic request, verifies and checks them. Once the R&T Agent is satisfied, dematerialization of the concerned securities is electronically confirmed to NSDL/CDSL. 4. NSDL/CDSL credits the dematerialized securities to the beneficiary account of the investor and intimates the DP electronically. The DP issues a statement of transaction to the client.

STOCK EXCHANGES IN INDIA

At present there are 23 stock exchanges recognized under the securities contracts (regulation), Act, 1956. Those are: 1. Ahmadabad Stock Exchange Association Ltd. 2. Bangalore Stock Exchange 3. Bhubaneshwar Stock Exchange Association 4. Calcutta Stock Exchange 5. Cochin Stock Exchange Ltd. 6. Coimbatore Stock Exchange 7. Delhi Stock Exchange Association 8. Guwahati Stock Exchange Ltd 9. Hyderabad Stock Exchange Ltd. 10. Jaipur Stock Exchange Ltd 11. Kanara Stock Exchange Ltd 12. Ludhiana Stock Exchange Association Ltd 13. Madras Stock Exchange 14. Madhya Pradesh Stock Exchange Ltd. 15. Magadh Stock Exchange Limited 16. Meerut Stock Exchange Ltd. 17. Mumbai Stock Exchange 18. National Stock Exchange of India 19. OTC Exchange of India 20. Pune Stock Exchange Ltd. 21. Saurashtra Kutch Stock Exchange Ltd. 22. Uttar Pradesh Stock Exchange Association 23. Vadodara Stock Exchange Ltd.

NSE (National Stock Exchange)

The National Stock Exchange of India Limited has genesis in the report of the High Powered Study Group on Establishment of New Stock Exchanges, which recommended promotion of a National Stock Exchange by financial institutions (FIs) to provide access to investors from all across the country on an equal footing. Based on the recommendations, NSE was promoted by leading Financial Institutions at the behest of the Government of India and was incorporated in November 1992 as a tax-paying company unlike other stock exchanges in the country. On its recognition as a stock exchange under the Securities Contracts (Regulation) Act, 1956 in April 1993, NSE commenced operations in the Wholesale Debt Market (WDM) segment in June 1994. The Capital Market (Equities) segment commenced operations in November 1994 and operations in Derivatives segment commenced in June 2000.

NSE's mission is setting the agenda for change in the securities markets in India. The NSE was set-up with the main objectives of: Establishing a nation-wide trading facility for equities and debt instruments. Ensuring equal access to investors all over the country through an appropriate communication network. Providing a fair, efficient and transparent securities market to investors using electronic trading systems. Enabling shorter settlement cycles and book entry settlements systems, and Meeting the current international standards of securities markets. The standards set by NSE in terms of market practices and technology, have become industry benchmarks and are being emulated by other market participants. NSE is more than a mere market facilitator. It's that force which is guiding the industry towards new horizons and greater opportunities

BSE (Bombay Stock Exchange)

The Stock Exchange, Mumbai, popularly known as "BSE" was established in 1875 as "The Native Share and Stock Brokers Association". It is the oldest one in Asia, even older than the Tokyo Stock Exchange, which was established in 1878. It is a voluntary non-profit making Association of Persons (AOP) and is currently engaged in the process of converting itself into demutualised and corporate entity. It has evolved over the years into its present status as the premier Stoc Exchange in the country. It is the first Stock Exchange in the Country to have obtained permanent recognition in 1956 from the Govt. of India under the Securities Contracts (Regulation) Act 1956.The Exchange, while providing an efficient and transparent market for trading in securities, debt and derivatives upholds the interests of the investors and ensures redresses of their grievances whether against the companies or its own member-brokers. It also strives to educate and enlighten the investors by conducting investor education programmers and making available to them necessary informative inputs.

A Governing Board having 20 directors is the apex body, which decides the policies and regulates the affairs of the Exchange. The Governing Board consists of 9 elected directors, who are from the broking community (one third of them retire ever year by rotation), three SEBI nominees, six public representatives and an Executive Director & Chief Executive Officer and a Chief Operating Officer.

The Executive Director as the Chief Executive Officer is responsible for the day-today administration of the Exchange and the Chief Operating Officer and other Heads of Department assist him. The Exchange has inserted new Rule No.126 A in its Rules, Byelaws pertaining to constitution of the Executive Committee of the Exchange. Accordingly, an Executive Committee, consisting of three elected directors, three SEBI nominees or public representatives, Executive Director & CEO and Chief Operating Officer has been constituted. The Committee considers judicial & quasi matters in which the Governing Board has powers as an Appellate Authority, matters regarding annulment of transactions, admission, continuance and suspension of memberbrokers, declaration of a member-broker as defaulter, norms, procedures and other matters relating to arbitration, fees, deposits, margins and other monies payable by the member-brokers to the Exchange, etc.

REGULATORY FRAME WORK OF STOCK EXCHANGE A comprehensive legal framework was provided by the Securities Contract Regulation Act, 1956 and Securities Exchange Board of India 1952. Three tier regulatory structure comprising Ministry of finance The Securities And Exchange Board of India Governing body

Members of the stock exchange: The securities contract regulation act 1956 has provided uniform regulation for the admission of members in the stock exchanges. The qualifications for becoming a member of a recognized stock exchange are given below: The minimum age prescribed for the members is 21 years. He should be an Indian citizen. He should be neither a bankrupt nor compound with the creditors. He should not be convicted for fraud or dishonesty. He should not be engaged in any other business connected with a company. He should not be a defaulter of any other stock exchange. The minimum required education is a pass in 12th standard examination.