INDEX

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Contents Declaration
Faculty Certificate

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Company/Industry Certificate Acknowledgement Preface Chapter-1. Chapter-2. Chapter-3. Introduction Company profile Research methodology Limitations of study Chapter-4. Chapter-5. Data Analysis &Interpretation Findings Suggestions Conclusion Bibliography Annexure 2 15 29 34 35 47 48 49 50 52

CHAPTER:1 INTRODUCTION

SHARE TRADING
Trading in shares is old phenomena its regulation had been started when securities contract act had been formed in 1956. Transfer of resources from those with idle resources to others who have a productive need for them is 2

most efficiently achieved through the securities market. It provides a channel for reallocation of savings to investments. SECURITIES AND EXCHANGE BOARD OF INDIA (SEBI) is a regulatory governing body of security market. The SEBI Act 1992 was enacted to empower SEBI with statutory powers for: (a) Protecting the interests of investors in securities. (b) Promoting the development of the securities market (c) Regulating the securities market

Its regulatory jurisdiction extends over corporate in the issuance of capital and transfer of securities. It has powers to register and regulate all the market all market intermediaries and also to penalize them in case of violations of the provisions of the ACT, rules and regulations made there under. SEBI has a full autonomy and authority to regulate and develop an orderly securities market. The share market can be segmented in two parts one is Primary Market another is Secondary Market.

Primary Market
It provides opportunity to issuers of securities government as well as

corporate to raise resources to meet their requirements of investments. In this market companies issue fresh security sin exchange of funds through public issues or private placements. The market design for primary market is provided in the provision of Companies Act, 1956 which deals with issues, listing and allotment of securities. The investors have to apply the shares by filling the application form issue by the company along with the application money.

According to Disclosure and Investor Protection guidelines of SEBI, 1992 company has to disclose all the necessary information regarding pricing of issues, listing requirements, disclosure norms lock-in-period for promoters contribution, contents of offer documents pre and post issue obligations etc.

Company can issue shares at face value, at premium or at discount. Another method of pricing which is now days common is issuing the securities through online system of the stock exchange has to comply with the section 55 to 68a of the companies Act, 1956 and SEBI guidelines 2000. The company is required to enter in to an agreement with the stock exchanges which have the requisite system for online offer of securities. The advantages for this new system are:(a) The investors part with money only after allotment. (b) It eliminates refunds except in case of direct applications. (c) It reduces the time taken for issue process

Secondary Market
Secondary market is the place for sale and purchase of existing securities. It enables an investor to adjust his holdings of securities in response to changes in his assessment about risk and return. It enables him to sell securities for cash to meet his liquidity needs. It essentially comprises of the stock exchanges which provide platform for trading of securities and a host of intermediaries who assist in trading of securities and clearing and settlement of trades. The securities are traded, cleared and settled as per prescribed regulatory framework under the supervision of the exchanges and oversight of SEBI.

Trading Mechanism
Earlier trading on stock exchanges in India used to take place through open outcry without use of information technology for immediate matching or recording of trades. This was time consuming and inefficient. This imposed limits on trading volumes and efficiency.

In order to provide efficiency, liquidity and transparency National Stock Exchange introduced a nation wide on line fully automated screen based trading system where a member can punch in to the computer quantities of securities and the prices at which he likes to transact and the transaction is executed as soon as it finds a matching sale or buy order from a counter party. 4

Screen based trading electronically matches orderson a price/time priority and hence cuts down on time, cost and risk of error, as well as on fraud resulting in improved operational efficiency. It enables market participants, irrespective of their geographical locations to trade with one another and it provides equal access to everybody. NSE has main computer which is connected through Very Small Aperture Terminal (VSAT) installed at its office. The main computer runs on a default tolerant STRATUS mainframe computer at the exchange. Brokers have terminals installed at their premises which are connected through VSATs. An investor informs a broker to place an order on his behalf.

ORGANISATION CHART

CHAIRMAN & CEO 5

Sameer Gehlant CEO

Rajeev Rattan President & CEO

Surabh Mital CEO

Gagan Banga Head online sales

Oivyesh Shah Head online sales

T.S. Muglani Chief Tech

Pheeta Nagpal Head- HR

Ashok Sharma Finance Controller

Suresh Jain V.P

Product & services

ACCOUNTS AND FEATURES

Through various types of brokerage accounts, they offer purchase and sale of securities, which includes Equity, Derivatives and Commodities listed on NSE, BSE and NCDEX. Additionally, they provide their clients access to a variety of insurance products like life, term and annuity products through 6

third-party insurance companies like Birla Sunlife Insurance Company. Indiabulls Group Signature Client is designed to serve self-directed individual investors who want to manage their own portfolios. For these clients, they offer this account, which is a stock trading account that allows clients to combine investments and cash in one-account and trade securities. Clients are also eligible to subscribe to Indiabulls Equity Analysis, a fee based research offering. Other features of Indiabulls Group Signature Account include priority handling of their service calls at the Centralized Customer Service Centre and through dedicated relationship managers. Indiabulls Group Signature account features include online integrated net transfers via integrated payment gateways with banks such as HDFC Bank. Power Indiabulls - For active traders, They offer Power Indiabulls accounts that include access to special features and services such as advanced trading tool dedicated team of relationship managers. Indiabulls offers a full range of financial services and products ranging from Equities to Insurance to enhance your wealth and hence achieve your financial goals. Indiabulls Professional NetworkTM offers real-time prices, detailed data and news, intelligent analytics, and electronic trading capabilities, right at your finger-tips. This powerful technology is complemented by our knowledgeable and customer focused Relationship Managers. Indiabulls' Relationship Managers are available to you to help with your financial planning and investment needs. To provide the highest possible quality of service, Indiabulls provides full access to all products and services through multi-channels.

Equities and Derivatives

Our Retail Equity Business caters to the needs of individual Indian and NonResident Indian (NRI) investors. Indiabulls offers broker assisted trade execution, automated online investing and access to all IPO's. Through various types of brokerage accounts, Indiabulls offers the purchase and sale of securities which includes Equity, Derivatives and Commodities

Instruments listed on National Stock Exchange of India Ltd (NSEIL), The Stock Exchange, Mumbai (BSE) and NCDEX.

The facilities Provided by Indiabulls

Indiabulls Signature Account
A multitude of ways to access your account either through priority access to Relationship Manager over phone or online access to your Account & Research Tools. Indiabulls Signature Account Features Priority Service Enjoy priority telephone access that gives you direct access to your Relationship Manager. Premium Research Benefit from full access to Indiabulls Equity AnalysisTM, our objective, fact-based approach to rating stocks. Online Accounting Stay on the top of your investments with a snapshot of your Account Statements. Get access to Portfolio statement and access to digital contract notes.

Benefits
Control Stay on top of your investments with convenient access to your account online or by phone. Confidence Support your investing decisions with premium in-depth research - Indiabulls Equity Analysis.TM Value Enjoy competitive commissions and get the service and support you need at a fair price.

Power Indiabulls
Indiabulls is dedicated to empower Active Traders through personal service and advanced trading technology. Active Trader - Get More At Indiabulls

Regardless of how the market is performing or which way the economic winds are blowing, you, as a trader, are researching, charting, crafting a strategy, buying and selling. You are getting in, getting out and moving on to the next trade. Choose from a comprehensive offering of accounts, platforms and products. Customize our technology and services to support the way you work.

Features of Power IndiabullsTM

1. Live Streaming Quotes 2. Fast Order Entry 3. Tic by Tic Live Charts 4. Technical Analysis 5. Live News and Alerts 6. Extensive Reports for Real-time Accounting

Benefits
Comprehensive Financial Services As an Active trader, you'll have the tools, resources and support you need to execute your trading strategy, plus your choice of a wide range of investment products and services. Dedicated Support and Services Enjoy priority access to Relationship Managers who are dedicated to supporting your trading and investing needs.

Non-Resident Indian (NRI) Investor Services With an extensive range of investment products, you will discover an unwavering commitment to helping you invest in India.

Facilities
Indiabulls NRI Trading Account - Provides access to comprehensive trading tools for independent NRI investors 9

Indiabulls Depository Services - Integrated services for seamless delivery HDFC Bank Account - NRE/NRO Accounts with built in tax management solutions and facility to source all regulatory approvals. Indiabulls Equity AnalysisTM - Premium Research on 200 companies updated daily. Benefits Indian Investments Brings You More Choices Investing in India, one of the world's fastest emerging financial markets, means a wider choice of investment opportunities and industries. At Indiabulls, you can take full advantage of the emerging Indian market. See what indiabulls offer Indiabulls provide you with a Seamlessly integrated trading, depository and bank account enabling you to trade from anywhere in the world. Investing in India, one of the world's fastest emerging financial markets, means a wider choice of investment opportunities and industries. At Indiabulls, you can take full advantage of the emerging Indian market. Indiabulls provide you with a Seamlessly integrated trading, depository and bank account enabling you to trade from anywhere in the world.

Depository Services
Indiabulls is a depository participant with the National Securities Depository Limited and Central Depository Services (India) Limited for trading and settlement of dematerialized shares. Indiabulls performs clearing services for all securities transactions through its accounts. They offer depository services to create a seamless transaction platform execute trades through Indiabulls Securities and settle these transactions through the Indiabulls Depository Services. Indiabulls Depository Services is part of value added services for 10

their clients that create multiple interfaces with the client and provide for a solution that takes care of all your needs. ISL is a depository participant with the NSDL and CDSL for trading and settlement of dematerialized shares. It performs clearing services for all securities transactions through its accounts. Clients of the brokerage business are able to use the depositary services to execute their trade through ISL and settle these transactions through our depositary services. Indiabulls depositary service is part of the value-added offerings to create multiple interfaces with the client.

Indiabulls Equity Analysis

They seek to provide their clients with customized research reports called Indiabulls Equity Analysis. It provides clients with an objective stock rating system on more than 200 stocks, assigning each equity a single grade: A, B, C, D, or E. On average, A-rated stocks are expected to strongly outperform the overall market over the next 12 months, while E-rated stocks are expected to strongly underperforms the market. Indiabulls Equity Analysis leverages their strong technology strengths to a systematic ratings methodology.

Objective guidance to help you buy or sell

Building and maintaining your ideal portfolio demands objective, dependable information. Indiabulls Equity AnalysisTM helps satisfy that need by rating stocks based on carefully selected, fact-based measures. And because we're not focused on investment banking, we don't have the same conflicts of interest as traditional brokerage firms. This objectivity is only one important difference in our ratings. A scale of A, B, C, D and E 11

A to E ratings are applied to over 401 Indian headquartered stocks using a wide variety of investment criteria from four broad categories. Rating is Understandable and Actionable Over the next 12 months, A-rated stocks have a return outlook of strongly outperforming the market while E-rated stocks have a return outlook of strongly underperforming the market. Find out more about using Indiabulls Equity Analysis TM The Indiabulls Equity Analysis TM model attempts to gauge investor expectations, since stock prices tend to move in the same direction as changes in investor expectations.

Stocks with low and potentially improving investor expectations tend to receive A or B ratings.

Stocks with high and potentially falling investor expectations tend to receive D or E ratings.

Special Considerations
Indiabulls Equity Analysis TM also do not reflect the possible impact of latebreaking news since the ratings are updated daily. Thus, it is important to conduct additional research prior to making a trading decision Indiabulls' systematic approach is dependent on the accuracy of financial data provided by third parties. Indiabulls Equity Analysis TM may not capture more subjective, qualitative influences on return and risk, such as management changes and pending lawsuits. Parameters used by Indiabulls to give grades to the individual stock Indiabulls Equity AnalysisTM' four underlying components (Fundamentals, Valuation, Momentum and Risk) are provided to give you further insight into why a stock has a particular Indiabulls Equity Rating. The component grades should not be used alone in making investment decisions. Always consider your investment goals, portfolio diversification and tax situation and check recent news before making an investment decision on an individual stock.

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Fundamentals The Fundamentals grade underlying the Indiabulls Equity Analysis TM is based upon several earnings-quality measures derived from recent financial statement data. Stocks with strong fundamental attributes such as a track record of high net profit margin and return on equity tend to have better Fundamentals grades. Valuation The Valuation grade underlying the Indiabulls Equity Analysis TM is based upon several value-oriented investment criteria. Companies that are commanding a higher valuation in the market currently as compared to others having similar earnings and other parameters shall get a lower rating than others. The aim of this component is to judge the attractiveness of a particular stock. Typically stocks with lower PE ratio and other valuation related parameters would get higher valuation grades. Momentum The Momentum grade underlying the Indiabulls Equity Analysis TM measures the potential of the stock to keep performing at a stronger than market level in the near future. IndiaBulls uses the opinions collected from a panel of analysts to get to a momentum rating for a company. Risk The Risk grade underlying the Indiabulls Equity Analysis TM is based upon several diverse measures of investment risk. Larger stocks with good risk related attributes (such as low stock price volatility, low debt-equity ratio, high stock liquidity etc.) tend to have better risk grades.

Shares
They provide various shares (equity, debt and balanced shares) through our retail distribution network. They offer clients a wide variety of shares from Asset Management Companies like Prudential ICICI Share, HDFC Share etc.

Indiabulls Easy Money

No questions. Only Loans.

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No matter where you work, or how much you earn, we offer you the shortest route to a loan with minimum paperwork and procedures. With Easy money TM, you can avail of easy loans for a minimum of Rs.10, 000 to a maximum amount of Rs.1,00,000. With absolutely No Prepayment Penalty. Easymoney Team features 1. Flexible loan tenor of up to 4 years (i.e. 1 month to 48 months). 2. Loans available from a minimum of Rs.10,000 up to a maximum of Rs.100,000. 3. Easy monthly repayment through equated monthly installments (EMI). 4. Medicaim Insurance bundled with every loan you avail. 5. Easy documentation and quick disbursal. 6. You take today and you can pay it tomorrow with no penalties

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CHAPTER:-2 COMPANY PROFILE

INTRODUCTION TO INDIA BULLS

Indiabulls is India's leading retail financial services company with 135 locations spread across 95 cities. While its size and strong balance sheet allow them to provide you with varied products and services at very attractive prices, over 750 Client Relationship Managers are dedicated to serving your unique needs.

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Indiabulls is lead by a highly regarded management team that has invested cores of rupees into a world class Infrastructure that provides there clients with real-time service & 24/7 access to all information and products. Their flagship Indiabulls Professional Network TM offers real-time prices, detailed data and news, intelligent analytics, and electronic trading capabilities, right at your finger-tips. This powerful technology is complemented by there knowledgeable and customer focused Relationship Managers. We are Creating a World of Smart Investor Indiabulls offers a full range of financial services and products ranging from Equities to Insurance to enhance your wealth and hence, achieve your financial goals. Indiabulls' Client Relationship Managers are available to you to help with your financial planning and investment needs. To provide the highest possible quality of service, Indiabulls provides full access to all our products and services through multi-channels

THE INDIABULLS PHILOSOPHY YOU COME FIRST

We have created a unique organization that is designed for you the Smart Investor . We passionately believe in the Smart Investor who wants to make his own educated investment choices and demands world class access to a full range of services and products ranging from Equities to Insurance, combined with the highest level of integrity, service and professionalism. Indiabulls is a full service investment firm offering clients access to a tremendous range of financial services from 135 locations across 95 cities. We have a strong team of over 750 Client Relationship Managers focused on serving your unique needs. Our world class infrastructure, built with tens of cores of investment, provides our clients with real-time service, multi-channel & 24/7 access to all information and products. As we've expanded and developed to serve the needs of all kinds of investors, we've been guided by one underlying philosophy: You come first.

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We are proud to introduce to you Indiabulls Professional NetworkTM that offers real-time prices, equity analysis, detailed data and news, intelligent analytics, and electronic trading capabilities, right at your finger-tips. This powerful technology is complemented by our knowledgeable and customer focused Relationship Managers who are available to help with your financial planning and investment needs. We invite you to learn more about Indiabulls by calling 1 600 11 1130 (toll free) or visit our 135 Indiabulls Offices Nationwide or explore the services we offer through the Indiabulls Market Trader.TM

HISTORY AND OTHER CORPORATE MATTERS OVERVIEW

Indiabulls Financial Services Limited was incorporated on January 10, 2000

as M/s Orbits InfoTech Private Limited at New Delhi under the Companies Act, 1956 with Registration No. 55 103183. The name of the Company was changed to M/s. Indiabulls Financial Services Private Limited on March 16, 2001 due to change in the main objects of the Company from Infotech business to Investment & Financial Services business. It became a Public Limited Company on February 27, 2004 and the name of Company was changed to M/s. Indiabulls Financial Services Limited. Company was promoted by three engineers from IIT Delhi, and has attracted more than Rs.700 million as investments from venture capital, private equity and institutional investors such as LNM India Internet Ventures Ltd., Transatlantic Corporation Ltd., Farallon Capital Partners, L.P., R R Capital Partners L.P., and Infinity Technology Trustee Pvt. Ltd. and has developed significant relationships with large commercial banks such as Citibank, HDFC Bank, Union Bank, ICICI Bank, ABN Ambro Bank, Standard Chartered Bank, Lord Krishna Bank and IL&FS. Company and there subsidiaries have facilities from the above mentioned banks and financial institutions aggregating to Rs. 1760 million. Companies headquarters are co-located in Mumbai and Delhi, allowing it to access the two most important regions for Indian financial 17

markets, the Western region including Mumbai, rest of Maharashtra and Gujarat; and the Northern region, including the National Capital Territory of Delhi, nearby cities, parts of Haryana, Uttar Pradesh and Punjab; and access the highly skilled and educated workforce in these cities. The Marketing and Sales efforts are headquartered out of Mumbai; with a regional headquarter in Delhi; and its back office, risk management, internal finances etc. are headquartered out of Delhi, allowing our Company to scale these processes efficiently for the nationwide network.

Main Objects Of The Company

The main objects to be pursued by the Company on its incorporation are: To hold investments in various step-down subsidiaries for investing, acquiring, holding, purchasing or procuring equity shares, debentures, bonds, mortgages, obligations, securities of any kind issued or guaranteed by our Company. To provide financial consultancy services; to provide investment advisory services on the internet or otherwise; provide financial consultancy in the area of personal and corporate finance; publish books and CD ROMs and any other information related to the above. To conduct the business of sale, purchases, distribution and transfer of shares, debts, instruments and hybrid financial instruments and to perform all related, incidental, ancillary and allied services. To conduct depository participant services; to conduct de-

materialization and re-materialization of shares; set up depository participant centers at various regions in India and to perform all related, incidental, ancillary and allied services.

To receive funds, deposits and investments from the public, Government agencies, financial institutions and Corporate bodies; grant advances and loans; conduct advisory services related to banking 18

activities, project financing, funding of mergers and acquisition activities; fund management and activities related to money market operations. To carry on the business of portfolio management services, investment advisory services; custodial services; asset management services; leasing and hire purchase; share services and to act as brokers of real estate and financial instruments. To carry on the business of financing; provide lease and hire purchase services; to provide consultancy in the area of lease and hire purchase financing. To operate shares; receive funds from investors; equity or debt instrument research activity instrument in debt and/or equity instruments.

Credit Rating
Indiabulls Securities Limited has been granted PR1+ rating for its unsecured short term borrowing program of Rs. 200 million. Vide letter dated May 5, 2004 the rating agency has increased the unsecured short term borrowing limit to Rs. 320 million maintaining the PR1+ rating. ISL also enjoys A+ rating for medium to long term unsecured borrowing program of Rs. 200 million. The Rating to the company has been assigned by Credit Analysis Research Limited. As for the present issue of equity shares of our Company, credit rating is not required.

Shareholders Agreement
Shareholders Agreement was entered into by and among our Company (formerly Orbis Infotech Private Limited), Infinity Technology Trustee Private Limited as the trustee of Infinity Venture India Fund, LNM India Internet Ventures Limited, Transatlantic Corporation Limited (together the VC Investors) and the Promoters dated November 2, 2000. The VC Investors invested an aggregate amount of Rs. 206,000,000 in our Company for which they were issued 55,425 equity shares at an average price of Rs. 3,716.73 per equity share. Pursuant to a letter agreement (the Letter Agreement) dated 19

May 27, 2004 between the parties to the Shareholders Agreement, each of the VC Investors have agreed not to enforce rights that have accrued to them before the said Letter Agreements and have agreed that the Shareholders Agreement, together with all the rights and obligation on the parties will stand terminated immediately upon the listing of the shares of our Company and consequent to the listing, the rights of the Shareholders Agreement, including the rights that have arisen prior to such termination shall be terminated. A copy of the Shareholders Agreement, and a copy of the Letter Agreement terminating the Shareholders Agreement are available for inspection as material documents at the corporate offices of our Company.

Key Competitive Strengths

Diverse Branch Network Since Company inception in FY 2000 Company and its subsidiaries have grown from a single location to a nationwide network spread over 135 offices in 95 cities. They have a pan India distribution networks for the purpose of distribution of financial products and services. Such a diverse and integrated network provides a centralized platform to there clients. Bouquet of financial products and services Company and its subsidiaries offer various financial services and products ranging from equity, F & O and wholesale debt, share, insurance and IPO distribution, equity research analysis, depository services to cater to the specific needs of the retail and institutional investors thus providing all these services in a single platform.

Advanced Technology team that delivers market leading product innovation There ongoing investment in technology is a key element in expanding there product and service offerings, enhancing there delivery systems, providing fast and consistent client service, reducing processing costs, and facilitating there ability to handle significant increases in client activity without a corresponding 20

rise in risk and staff. Company and its subsidiaries have an in-house technology team of 27 people comprising of several engineers. The in-house technology team has been responsible for developing the technology products for operating at a large scale with efficient back office systems. The application of technology allows Company and its subsidiaries to build scaleable product and service offerings. The in-house technology team developed one of the first Internet trading platforms in India, one of the first in-house real-time CTCL link with NSE. Company and its subsidiaries introduced integrated accounts with automated gateways with client bank accounts so that they can transfer funds to and from their bank account to their brokerage account with the Company. This has enhanced customer ability to access their funds for market related activities. The in-house technology team has good expertise to create mission critical applications and in the maintenance and upkeep of high transaction processing of there web-site.

Strong

Sales

and

Marketing

Teams

with

continuous

reinvestment and training

Companys relationship manager channel (through a team of 1050 Relationship Managers as on April 30, 2004) offers a single point contact to retail customers whereby their high net worth clients have separate relationship managers catering to them. These managers offer personalized services to the customers helping build strong and continuing relationships with them. Also, our marketing associate channel helps Company and its subsidiaries in client acquisitions at minimal costs with client loyalty. The marketing associates channel also helps Company and its subsidiaries in increasing their penetration in smaller town and cities.

Strong cross Selling Opportunities

With 135 branches spread over 95 cities all over India and variety of financial products and offerings coupled with online, relationship manager & marketing associate channels, Company and its subsidiaries have strong cross product

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selling opportunities thus providing a multi-channel delivery systems to there diverse client base of 71,000 clients as on July 10, 2009.

Strong Team of Experienced Promoters

Indiabulls has a strong team of promoters who are engineers from Indian Institute of Technology and have several years experience in financial services industry. They believe that their strong technical experience will help them in achieving our key business strategies.

Leading Product innovation and marketing strategies

Management is innovative and nimble and has historically introduced many new and innovative products to the market place that have played a significant role in their growth. Companys relationship manager model has introduced private banking experience to the clients. The relationship managers are trained and incentives to work with their client base and enhance ability to cross sell and leverage the large client base. Indiabulls have launched marketing associate model, which replaces the traditional sub-broker model with an authorized person that client can appoint independently and provide them with the benefit of their trading, clearing and servicing strengths. Its equity analysis product provides clients with unbiased research. Company plans to continuously innovate and introduce market leading products and services to add to its competitive advantage. Well capitalized player, with strong banking relationships and credit ratings Indiabulls consolidated net worth is Rs. 1023.19 million making us a well capitalized companies. The Company and ISL have received sanctioned facilities of Rs. 1760 million from 9 leading commercial banks and financial institutions. The details of the banking relationships as of July 24, 2004 are as follows: Ability to combine People & Technology in unique ways They provide multiple distribution channels by combining people and technology. Clients can visit one of the 70 offices in 55 cities or access via telephone, call centre or online channel. Web enabled tools such as technical 22

analysis, information, news, interactive web based programs and tools and back office solutions for clients and marketing associates; Power Indiabulls an order entry, routing and management technology through technology platform, for actively- trading investors. Strong market presence and increased market share leads to virtuous cycle of growth and profitability Theyre growing client base and market share have increased their market presence, brand recognition enhanced their profitability and increased the available credit facilities from the banks further strengthening its strong balance sheet. Companys brand and profitability allows them to recruit good and efficient employees, compensate them attractively and provides the flexibility toes for investments in the business and technology systems. These attributes in turn have a positive effect on the growth of its client base thereby increasing its market share, leading to higher profits and credit facilities and thus forming a virtuous circle.

Key Business Strategies

Their focus on the client has allowed Company and its subsidiaries to offer a range of services that have changed the investing landscape and created a new model of financial services that melds people and technology to provide an integrated human assisted technology interface service for investors who range from self-directed full-time active investor to those who prefer to deal with through a marketing associate in smaller towns and cities. Their key strategies include: Defend and maintain their differentiation as the firm that delivers ethical and useful services Build and expand investing insight through product offerings such as Equity Analysis which is objective, Uncomplicated and not driven by commission Give clients new levels of choice tailored to their desire for help, tools for investing their assets, their willingness to pay for additional services and the level of business they can do with the company. 23

 Provide clients with tools, relationship managers and choices that support their desired investment outcomes. Indiabulls has developed a client specific approach as a core element of its business strategy and are constantly focusing on acquiring new clients and expanding their customer base. They believe that the strong secular growth of the Indian financial Markets, due to increased household penetration of financial assets; increasing liquidity and market capitalization of Indian Markets, led by the listing of many public sector entities; and the increasing affluence of Indian households and savers provides an impetus to the growth perspective. They believe that this diversification and growth strategy will continue to produce results and allow Company and its subsidiaries to grow business at a rapid pace irrespective of market conditions. In addition, management believes that the growth of the Indian financial markets, due to increased household penetration of financial assets; increasing liquidity and market capitalization of Indian markets, led by the listing of many public sector entities; and the increasing affluence of Indian households and savers, favors our long term growth outlook. The table below encapsulates the financial metrics on an annual basis, and compares that with the Market trading volume. (NSE Yearly Trading Volume is taken as representative of Market activity). The core pillars of our business strategy are discussed below: Increase the number of Client Relationships They are focused on increasing the number of client relationships through a wide network of offices throughout India and having more number of relationship managers to service these relationships. They plan to grow their business by growing the number of client relationships. During a downturn of the markets they believe that increased number of client relationships will add stability to their earnings. Offer Diversified Financial Products & Services Capture Greater Share of Wallet 24

Company and its subsidiaries offer to their clients a wide range of financial services and products allowing the clients to leverage their relationship with Indiabulls and get products suiting their varied needs. This strategy allows them to gain share of wallet of the clients consumption of financial services. They offer to the client a comprehensive product offering and are able to increase their revenues per client by selling different products to the same client. Indiabulls offer equity, debt & derivatives brokerage, IPO distribution, shares and insurance products. Their strategy is to increase the number of client relationships and then leverage those client relationships into offering in a whole suite of financial products. Multiple Channels Enhance Customer Experience and Opportunities to interact with us Companys clients can access their products and services through 135 offices spread across 95 cities; through operator assisted call Centers; or through their website www.indiabulls.com; or through their respective relationship managers or through marketing Associates. These multiple channels provide flexibility to the clients and allow them to utilize their existing business Relationship with them through any channel from any part of India. Companys strategy is to provide the most convenient, efficient and value added channel to the client at the lowest possible cost, and allow the clients with choice and varied access points. Indiabulls believe that their multiple channel strategy has been particularly effective in the affluent segment where many sophisticated clients like to have a close-by office they can access and yet have the flexibility of Internet account management, transactions and electronic funds transfer and settlement.

Relationship Manager driven sales model, provide high quality service and exploit cross-sell opportunities
Companys clients benefit from the personal attention and advice of the trained and motivated relationship managers. All its relationship managers are qualified and educated professionals, who have been extensively trained inhouse to provide the products and services to the clients. These relationship 25

managers are encouraged to develop long-term relationships with the clients and can access a variety of resources within the Company, such as insurance specialists, research services and others to add value to their clients. Most of the clients have dedicated relationship managers irrespective of the channel they use.

Low cost and highly scalable business

Indiabulls has utilized the technologies available and have constantly invested in products and innovations to provide an enhanced experience to its customers. The benefits of such infrastructure include integrated customer trading account with depositary services; electronic gateway for instant funds transfer to and from the bank to the brokerage account; and comprehensive client systems that track all activity in various segments. They believe that technology and systems are one of the key competitive edges in terms of lowering their operating costs; managing the business; reducing risk and providing an enhanced experience to the clients with superior service standards.

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Brokerage Offering
Companys retail equity business primarily covers secondary market equity broking. It caters to the needs of individual Indian and Non-resident Indian (NRI) investors. They offer broker assisted trade execution and automated online investing and trading facilities to their customers. Automated online investing and trading includes automated order placement and execution of market and limit equity orders; and advanced trading platforms for active traders. All investors have full access to real - time quotes, personalized portfolio tracking, charting and quote applications, real-time market commentary, real-time quotes and news.

Online Automated Channel

Automated Online Business contributes more than 34.6% of its overall revenues. They control more than 20% market share in the online business. Clients are able to obtain financial information and execute trades on an automated basis through their online channel using product offerings like Power Indiabulls and Indiabulls Market Trader. This channel is designed to provide added convenience for clients and minimize its costs of responding to and processing routine client transactions. Online channels include the Indiabulls Group Professional Network that provides access via their web-site www.indiabulls.com to information and trading service on the Internet. Additionally, Power Indiabulls online trading system is designed for the high volume trader and provides enhanced trade information and order execution integrated software-based trading platforms. While most client transactions are completed through the online channel, they continue to stress the importance of blending the power of the Internet with personal service to create a fullservice client interface. They offer an online portal where the clients can execute securities purchase and sales transactions through the Internet. This covers the Equity, Debt & Derivatives segment in the Indian securities market. With an objective of assisting our customers in taking investment decisions, the portal also provides financial information on various companies listed. For executing a transaction clients can directly log on to our website without requiring any assistance from offline intermediaries 27

Third Party Financial Products Offering

They distribute third party products and services through our comprehensive retail distribution network. The products offered include third party insurance, shares and initial and secondary public offerings. They have a pan India retail distribution network, comprising 1050 relationship managers and 135 branches spread over 95 cities.

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CHAPTER:-3 RESEARCH METHODOLOGY

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OBJECTIVE
To study investors behavior towards different attributes such as risk, return, liquidity etc. of investment in Equities. To study the issues and challenges that investors face while making investment in share market. To study the preferences and perceptions of investors regarding various financial products from the stable of Indiabulls Securities Ltd. so that the firm can benefit from the findings of the report in launching any new investment product in future.

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RESEARCH METHODOLOGY
The methodology section is the blue print for researcher activity and specifies bow the investigator intents to study the people or describe social settings. In other words the methodology section make explicit the study desire and constitutes the how to do it phase. The project study has been conducted by collecting primary data only using structured questionnaire. No secondary data is used. I have put my best possible effort to do this research and collect the necessary information to learn about this topic thoroughly.

Defining the populations: The population taken for the research consists of investors of only Delhi region (both retail and institutional) Defining the Sample: A random sample has been taken for the purpose of extensive market survey. A structured questionnaire has been prepared and the results are analyzed for precise findings. Size & Type of Sample: A random sample of size 100 is taken for surveying. Method to be used: A frequency count has been done for different parameters/ question and the most important factors have suggested to the company for betterment of sales operations.

Type of Research
This project is more of an exploratory research with more of qualitative analysis than quantitative. The data collection method for this project begins with finding a sample of the population. The population for this project was from Jaipur. The research methodology adopted was both primary and secondary. Primary data was collected to study the investment psyche of a person, their practice on saving, salary a/c options available. Questionnaire was designed and Interviews both direct and through telephone were undertaken, to ascertain the investors behavior as well as to depict the future prospects and growth momentum of the banking industry, on which the hypothesis was tested. 31

DATA COLLECTION TOOLS

1.

Primary data.

The major source of primary data was the information and questionnaire collected from the customers. Groups tapped for the data collection sheet and personal interview work from industrial directories, personal reference and the data from Internet. Target segment for the phone calling were derived from the confirmed assorted gets from phone directories, industrial directories etc. call was made to the selected organization or customer in the directly and ask for the personal meet and also other information which is helpful to create data & its collection. 2.

Secondary data.
The major source of secondary data was the reference books and companys website. The companys articles and magazines were also referred to for the information.

a. Methodology for study of comparison of different bank accounts relation and satisfaction of existing for grab the other opportunities either cross studying of the products

COLLECTION OF DATA
The data collected was a primary in nature no secondary data was used. Primary data was collected using structured questionnaire. The questionnaire has been designed for the target group to get the best amount of data possible keeping in view the importance and authenticity of the information and convenience of the respondent. The selection of investor was predetermined in nature Personal contacts were established to conduct a face-to-face interview. Interview was conducted under strict supervision to maintain the standards of the data collected.

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Research Design
Data Collection Data Analysis Findings and Recommendations

Research design
Research design is a specification of methods and procedures for acquiring the information we need to solve the problems. Research design was adopted for the purpose of collection and analysis of data in a manner aimed at getting relevant information. It was conceptual structure within which research was conducted, collected, measured and analyzed.

Research Statement
To get an insight into the mind of investors regarding trading and investment in Equities To get an insight into the mindset of investors regarding the importance assigned to different attributes such as risk, return, liquidity etc. of various investment channels such as equities. In the report this tries to understand the investors behavior while trading. To study the preferences and perceptions of investors regarding various financial products from the stable of Indiabulls Securities Ltd. so that the firm can benefit from the findings of the report in launching any new investment product in future.

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Limitations of the study

To study share market is a very vast topic and the search is just limited to a small portion. Due to the reluctant nature of the respondents it was not an easy task to collect relevant information from them. Sometime it was difficult to make the respondents understand the purpose of the survey. Busy schedule of the respondents was also a major hindrance to establish a contact with them. It may be possible the information provided by them is not true

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CHAPTER-4 DATA ANALYSIS & INTERPRETATION

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ANALYSIS OF THE PREFERRED INVESTMENT AREA

The investment was broadly divided into five areas, mainly-Bank deposits. Shares, Share ,Real Estate and insurance plans. 1. Where do you prefer to invest your money? Table 4.1Preffered Investment Area

Bank Deposits 43%

45 40 35 30 25 20 15 10 5 0 Bank Deposits

Shares 27%

Mutal Funds 13%

Real Estate 7%

Insurance Plan 10%

Shares

Mutual Funds

Real Estates

Insurance plan

Fig4.1Preffered Investment Area

Bank Deposits being the most preferred area, 43% respondents out of hundred invested in bank deposits.

The second preferred area was Shares as 27% respondents were investing in the share market.

Then preferred area was the Shares with 13% of respondents Real estates were the least preferred area i.e. only 7%

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ANALYSIS

OF

THE

FACTORS

AFFECTING

THE

INVESTMENT
2. What are the factors, which attracts you for the investment? Table 4.2Affecting The Investment

High Return 52

Moderate Low Return Risk 29 4

Moderate Risk 15

The factors are categorized in to four parameters to know the purpose of investment made by the investor.

Moderate Risk, 15 Low Risk, 4

High returns, 52 Moderate Return, 29

Fig4.2Affecting The Investment 52% respondents go invests for higher returns. 29% respondents prefer Moderate Return for their investments. 15% prefer moderate risk. Only 4% for Low risk.

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ANALYSIS FOR INTERMEDIATING COMPANY

These factors are categorized into brokerage, Information provided by them the exposure limit or loan facility provided by them and their Brand Name. 3. If yes, out of following, which intermediating company would you go For? Table 4.3Intermadiating Company

Indiabull Kotak s ICICI Securities Securities 21 38 7

Frotis Other securities 4 30

40 35 30 25 20 15 10 5 0 Kotak Sec. Indiabulls ICICI direct Fortis sec others

Fig 4.3Intermadiating Company 21% respondents choose Kotak Securities Ltd. 38% respondents choose Indiabulls Securities Ltd. for trading. 38

7% respondents choose ICICI direct. 4% respondents choose Fortis.

ANALYSIS OF THE FACTORS FOR BROKING HOUSE

These factors are categorized into brokerage, Information provided by them the exposure limit or loan facility provided by them and their Brand Name. 4. What attracts you to invest in Shares? Table 4.4 Broking House

Brokerage 12%

Expertise Knowledge 44%

Exposure Brand loan 28% 16%

16

12

28

44

Fig 4.4Broking House 44% respondents choose their broking house on basis of information provided by them. 28% prefer by the exposure limit and the loan facility provided to them. 12% by the brokerage charge by the broking house. 16% by Brand Name.

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ANALYSIS OF THE INFLUENCE OF THE PAST PROFILE OF A COMPANY

5 Does the companies profile matter for the investment decisions? Table 4.5Profile of the Company

Yes 58%

No 42%

NO 42%

Yes 58%

Fig 4.5 Profil of the company 58% respondents say yes they study profile of the company before making investment. 42% respondents say no.

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41

ANALYSIS OF THE REQUIREMENT OF EXPERTISE

6.Do you require the opinion of portfolio managers to manage your investment? Table 4.6The Requirement Of expertise

Yes 93%

No 7%

NO 7%

Yes 93%

Fig 4.6The Requirement Of expertise 93% respondents say yes, they required expertise knowledge. 7% respondents say no.

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MOST IMPORTANT SERVICE PARAMETER

7. What is the most important service parameter that you look for While trading? Table 4.7Service Parameter

Information Speed 42% 20%

Quality 36%

Other 3%

Service Parameters

3% 42%

20%

35%

Fig4.7Service Parameter The most important service parameter that came up as a result of survey is Information i.e. the investors feel that the information contained in the service package is the key to more profits. Second major parameter is Quality of service. 20% investors feel that the quickness of service is above par than any other aspect.

8.

Would you like to avail of any of our products and services from Indiabulls?
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Table 4.8 products & Services Yes 80 No 20

20%

80%

Fig 4.8 products & Services Interpretation

Most of people were interested in IndiabulsServices.

. 20% people interested the services 80% People like the Company services

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9.

How do you rating the services of INDIA BULLS? Table 4.9 rating the services very poor 10% poor 8% average 22% good 40% Excellent 20%

20%

10% 8%

22% 40%

Fig 4.9 Rating the Services

Interpretation INDIA BULLS was ranked well by about 40% people on rating scale

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10. Should the Company provide door to door information related to Shares? Table 4.10 Information related to Shares Yes 74% No 26%

7 4% 4%

Fig 4.10 Information related to Shares Interpretation74% people want that copany provide door to door information 26% people not want provide door services

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CHAPTER:5 FINDINGS, SUGGESTIONS & CONCLUSION

47

FINDINGS

1.India bulls is very popular in Between innvester

2.Most of the Consumers Preffed to expertise knowledge

3. Mose than Innvestor Preffered to saviniig in F.D

4.The company has got proper returns on it capital employed and fixed assets as compared to previous year.

5.

The people surveyed, want to avail the services provided by the

IndiaBulls.

6. Bank Deposits being the most preferred area, respondents out of hundred invested in bank deposit

Respondents say yes they study profile of the company before making

investment.

8 The most important service parameter that came up as a result of survey is Information i.e. the investors feel that the information contained in the service package is the key to more profits

9 Real estates were the least preferred area i.e. only

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SUGGESTIONS

1. India bulls Should transprenent the Qulive faculity.

2. Indibuls should Wide their online network

3. The corporate office makes the investment of surplus fund and is not generally involved while taking decisions with .regard to structure of investment of surplus funds . the corporate office should involve the units so as so to better ascertain the future requriment of funds and accordingly the investment are made in different securities

4. Company should try to maintain proper provision for various tax liabilities because it reduces companys profit.

5 .The company should keep a check on the borrowing policy of the concern as they are increasing at the contant rate at the same time the current assests are to be increased in order to meet up all the paymeny when ever they become due.

6. New and different product should be launched to attract more customer 7. Customer service should be improved. 8. Response given by some customers should be taken care of and steps should be taken on the same.

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CONCLUSION
With the emerge trend of globalization and privatization the look of Indian economy has taken new dimensions. There are more possibilities of inward and outward souring at capital, labor and technology. Indian export and job opportunity has tremendously increased. At last I concluded the study on the basis of finding and analysis of the survey. Most of the existing customers of account holder were satisfied with the facilities provided by India bulls Marketing executives sales persons, the proper presentation is not going to the potential customer, so the other banks, who having qualified marketing executive grab the opportunity of market so some more effort should be done to grab the opportunity. Thai the survey several that the organization has provide a wide range of product service and investment plans. Banking that is flexible, innovative and prompt in meeting the customer requirement. Over all it was observed that the customer were satisfied being as a member of India bulls . They think one provide better services product and facility at one place in comparison of other competitor customer.

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BIBLIOGRAPHY

51

BIBLIOGRAPHY

www.indiabulls.com www.nseindia.com www.bseindia.com www.moneycontrole.com

Economics Times C.R. Kothari, Marketing Research NCFM

www.ssrn.com

www.indiabulls.com

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ANNEXURES

53

Questionnaire

Name Address Phone no

: : :

1. Where do you prefer to invest your money? a) Bank Deposits c) Shares e) Insurance Plans 2. What are the factors, which attracts you for the investment? a) High Return c) Low Risk 3. Do you prefer to invest in shares? a) Yes No 4. If yes, out of following, which intermediating company would you go For? a) Kotak Securities c) ICICI d) Others, please specify 5. If Indiabulls, What are the factors, which attract you to deal with Indiabulls? b) Indiabulls Securities d) Fortis Securities b) b) Moderate Return d) Moderate Risk b) Shares d) Real estate

6. If Others, What are the factors, which attract you, please specify?

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7. What attracts you to invest in Shares? a) Brokerage c) Exposures/loan b) Expertise Knowledge d) Brand

8. On what basis do you prefer to trade in shares? a) Daily c) Yearly specify 9. Does the companies profile matter for the investment decisions? a) Yes No 10. Do you require the opinion of portfolio managers to manage your investment? a) Yes b) No b) b) Monthly d) other, please

11. What is the most important service parameter that you look for While trading. a) Information c) Quality b) Speed d) Other

12. Any recommendation / Suggestion

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