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DECLARATION

I, Ankur Tiwari a student of PGDM VI trimester , hereby solemnly declare that the Research pro ect titled INVESTMENT IN SHARE MARKET is the outcome of my own research prepared by me and the same has not been submitted to any uni!ersity or institute for the award of any de"ree or diploma#

A$%&R TI'ARI Roll $o# ()*()(

ACKNOWLEDGEMENT

I am also thankful and would like to e+press my Gratitude to the honorable Mrs. Karuna Gupta and the entire Institute for "i!in" me a Platform to ha!e this wonderful opportunity and bein" able to "et a "limpse of the ,orporate 'orld#

WITH REGARDS

ANKUR TIWARI PGDM VI TRIMESTER

PREFACE

As a Part of PGDM Pro"ram, -tudent has to pursue a pro ect duly appro!ed by the .aculty of ,oncerned area# I had the pri!ile"e of undertakin" the pro ect on /In !st"!nt In S#ar! Mar$!t0 in R!%&'ar! S!(ur&t&!s L&"&t!)# Main aim of the Pro ect is to study 1ow to, 'hen and where we can in!est our money to "ain more profit#

My findin" was that the e+tensi!e reforms introduced o!er the last few years ha!e enhanced the inte"rity, transparency and efficiency of the operations in the securities market# There has been appreciable impro!ements in tradin" and settlement of securities in secondary market, and the market has become a safer place as re!ealed by the interest of in!estors throu"h tradin" !olumes#

A$%&R TI'ARI

CONTENTS
S.NO. TOPIC PAGE NO.

*. .. 3. 4. 6. 8. 5. :. ;. *7. **. *.. *3. *4. *6. *8.

E+!(ut& ! Su""ar,---------.. O/0!(t& ! 12 pr10!(t---------Intr1)u(t&1n................................................... C1"pan, Pr12&%!----------. D!p1s&t1r, s!r &(!s---------... 9as&( s!r &(!------------.. F&nan(&a% )!r& at& !s--------R!s!ar(# 1/0!(t& !---------R!s!ar(# "!t#1)1%1',--------.. Data (1%%!(t&1n-----------Sa"p%&n' p%an------------.. F&n)&n's--------------C1n(%us&1n--------------. L&"&tat&1ns--------------. <u!st&1nna&r!-------------. 9&/%&1'rap#,-------------..

* 3 4 5 .7 37 46 53 54 56 58 :* :* :. :4 :8

E=ECUTIVE SUMMAR>
The Present business scenario is totally consumer oriented# 2!ery company faces stiff competition from its competitors, each pro!ides the best product at competiti!e rates# As a result customers ha!e lot of choices to "et the best with the least cost# To face this competition, it is !ery important to know customer3s beha!ior, their needs, preferences and also the moti!ational factors#

Reli"are -ecurities 4imited Pro!ide its 2+pert ser!ice in share market 5perations to institutional In!estors# C1"pan, &s a M!"/!r 12 Nat&1na% St1($ E+(#an'! as ?!%% as 91"/a, St1($E+(#an'!# Reli"are is slowly but steadily "ainin" market share and "oodwill in the Market# Its strate"ies for marketin" its ser!ices as well as de!elopin" a "ood Relationship with its client has "i!en an ed"e o!er the other ser!ice pro!iders# Reli"are is on e+pansion path and is lookin" forward to be in the top# Reli"are is a !ery fle+ible or"ani6ation and it "i!es e7ual opportunity to its youn" and ener"etic staff to work so as to brin" this or"ani6ation amon" the top# to be dynamic in this industry# The comparati!e analysis done in this pro ect show how Reli"are has built competiti!e ed"e on some "round

The Pro ect help you understand the strate"ies of this industry ri"ht from De8Mat to Tradin", Mar"in to analysis and risk to return# I hope this pro ect pro!e to be beneficial for the ,ompany and also "i!e the idea about the industry#I learnt a lot throu"h out the process of undertakin" this pro ect report#

To fulfill my task I had to !isit the client personally who are dealin" in share tradin" with this company or some other brokin" house# *

.or this pro ect I was assi"ned the tar"et of *) accounts, for which I first "enerated the database and made appointment with them and con!ert them in as traders of Reli"are -ecurities 4imited, for this I ha!e to con!ince them and e+plain the concept and collect the Tradin" .orm and a che7ue of Rs# 9))) only#

After "oin" throu"h the e+ercise I found that R-4 is one of the up8comin" companies in the -hare Market, as the credibility of other companies are "oin" down in the market and it is the ri"ht time for the R-4 to built its reputation in the market# The Main reason for R-4 low market share is because of local brokers in the market which a char"in" !ery less Mar"in as initial in!estment for Tradin" in -tock Market#

:ut $o doubt it is ha!in" lots of scope to "row in the financial Market, and I wish it is ha!in" a shinin" future in the comin" years#

O9@ECTIVES

Pr&"ar, O/0!(t& !A

To -tudy how to in!est money in -hare8 Market#

S!(1n)ar, O/0!(t& !A

To study !arious financial products like 27uity, Mutual .unds, ,ommodity; Portfolio Mana"ement -er!ices# To -tudy the !arious ser!ices pro!ided by :roker house to their clients# To know in!estors e+perience in capital market To study what other ser!ices in!estors e+pect from their broker house.

<

INTRODUCTION

A/1ut s#ar!s 1r st1($s


In simple words, a s#ar! 1r st1($ is a document issued by a company, which entitles its holder to be one of the owners of the company# A share is issued by a company or can be purchased from the stock market# :y ownin" a share you can earn a portion and s!%%&n' s#ar!s you "et capital "ain# -o, your return is the di!idend plus the capital "ain# 1owe!er, you also run a risk of makin" a capital loss if you ha!e sold the s#ar! at a price below your buyin" price#

<u&($ Fa(ts 1n St1($s an) S#ar!s

5wnin" a stock or a share means you are a partial owner of the company, and you "et !otin" ri"hts in certain company issues 5!er the lon" run, stocks ha!e historically a!era"ed about *)= annual returns howe!er, stocks offer no "uarantee of any returns and can lose !alue, e!en in the lon" run

In!estments in stocks can "enerate returns throu"h di!idends, e!en if the price

>

Reli"are is dri!en by ethical and dynamic process for wealth creation# :ased on this, the company started its endea!our in the financial market? Religare Enterprises Limited (A Ranbaxy Promoter Group Company) Throu"h Reli"are -ecurities 4imited, ReligareFinvest Limited, ReligareComdeLimited and Religare Insuran e Advisory !ervi es Limited pro!ides inte"rated financial solutions to its corporate, retail and wealth mana"ement clients# Reli"are is proud of bein" a truly professional financial ser!ice pro!ider mana"ed by a hi"hly skilled team, who ha!e pro!en track record in their respecti!e domains# :ranches Today, we ha!e a "rowin" network of *9) branches and more than <)) business partners spread across *@) cities in India and a fully operational &nlike a traditional brokin" firm, Reli"are "roup works on the philosophy of partnerin" for wealth creation# 'e not only e+ecute trades for our clients but also pro!ide them critical and timely in!estment ad!ice# The "rowin" list of financial institutions with which Reli"are is empanelled as an appro!ed broker is a reflection of the hi"h le!el ser!ice standard maintained by the company# Reli"are has a !ery credible team research ; Analysis di!ision, which not only caters to the need of our institutional client but also "i!es there !aluable input to in!estment dealers# Reli"are is amon" the capital market fraternity and the most !ibrant place in terms of information and e!ery day it is consolidatin" its efforts to pro!ide more customi6ed ser!ices to its clients#

R!%&'ar! )!a%s ?&t#- Pr1)u(ts AB

E<UITIES-..

MUTUAL FUND

DERIVATIVES CF D OE

COMODITIES

PMS

WEALTH MANAGEMENT

COMPAN> PROFILE

Our 9ran) I)!nt&t,

Na"!
Reli"are is a 4atin word that translates as Bto bind to"etherB# This name Reli"are was chosen to reflect the inte"rated nature of the financial ser!ices the company offers# The name is intended to unite and brin" to"ether the phenomenon of money and wealth to co8e+ist and ser!e the interest of indi!iduals and institutions, alike#

S,"/1%
The name is paired with the symbol of a four8leaf co!er, a rare mutation of the common three8 leaf clo!er# Traditionally, it is considered "ood fortune to find a four leaf clo!er as there is only one four8leaf clo!er for e!ery *),))) three8leaf clo!ers found#2ach leaf of the four8leaf clo!er has a special meanin" in the sphere of Reli"are#Reli"are -ecurities 4td# is one of the leadin" brokin" house of India# It is known for its stron" belief in Value8In!estin" ideas, which forms the

core of its in!estment philosophy# Reli"are pro!ides end8to8end e7uity solutions to institutional and indi!idual in!estors#

RELIGARE SECURITIES LIMITED

MISSIONA
Pro!idin" inte"rated financial care dri!en by the relationship of trust and confidence#

VISIONA To be IndiaBs first Multinational pro!idin" complete financial ser!ices solution across the "lobe# R!%&'ar! Gr1up 12 C1"pan&!sA

Reli"are 2nterprises 4imited "roup comprises of Reli"are -ecurities 4imited, Reli"are ,omde+ 4imited, Reli"are.in!est 4imited and Reli"are Insurance Ad!isory 4imited which deal in e7uity, commodity and financial ser!ices business# R-4 is one of the leadin" brokin" houses of India and are dealin" into 27uity :rokin", Depository -er!ices, Portfolio Mana"ement -er!ices, Institutional 27uity :rokera"e ; Research, In!estment :ankin" and ,orporate .inance

2+tension of ser!ices has been a constant feature in Reli"are to re"ard the needs of our clients# ,onse7uently, company is soon "oin" to launch Internet Tradin" and Merchant :ankin"# This would take care of different in!estment needs of different classes of in!estors @

To facilitate free and fare tradin" process Reli"are is a member of ma or financial institutions like, $ational -tock 2+chan"e of India, :ombay -tock 2+chan"e of India, Depository Participant with $ational -ecurities Depository 4imited and ,entral Depository -er!ices DIE 4imited, and a -2:I appro!ed Portfolio Mana"er R-4 ser!es a platform to all se"ments of in!estors to a!ail the opportunities offered by in!estin" in Indian e7uities either on their own or throu"h mana"ed funds in Portfolio Mana"ement#

R!%&'ar! C1")!+ L&"&t!)A


Reli"are is a member of $,D2F and M,F and pro!ides platform for tradin" in commodities, which is an online facility also# R,4 pro!ides platform to both a"ro and non8a"ro commodity traders to deri!e the actual price of the commodity and also to trade and hed"e acti!ely in the "rowin" commodity tradin" market in India# 'ith this reali6ation, Reli"are ,omde+ is comin" up with its branches at >(8mandi locations# It is a fla"ship effort from our team which would be helpful in facilitatin" trade and speculatin" price of commodities in future#

R!%&'ar!F&n !st
Reli"are.in!est 4imited DR.4E, a $on :ankin" .inance ,ompany D$:.,E is a""ressi!ely makin" a name in the financial ser!ices arena in India# In a fast paced, constantly chan"in" dynamic business en!ironment, R.4 has deli!ered the most competiti!e products and ser!ices# G

R.4 is primarily en"a"ed in the business of pro!idin" finance a"ainst securities in the secondary market# It also pro!ides finance for application in Initial Public 5ffers to non8retail clients in the primary market R.4 is also plannin" to initiate personal loan portfolio as fund based acti!ity and mutual fund distribution as fee based acti!ities#Alon" with this, the company also undertakes non8fund based ad!isory operations in the field of ,orporate .inancin" in the nature of ,redit -yndication which includes inter alias, bills discountin", inter corporate deposit, workin" capital loan syndication, placement of pri!ate e7uity and other structured products

R!%&'ar! Insuran(! A) &s1r, Lt).

Reli"are has been takin" care of financial ser!ices for lon" but there was a missin" link# .inancial plannin" is incomplete without protecti!e measure i#e# structured products to take care of e!ent of thin"s that may "o wron" ,onse7uently, Reli"are is soon comin" up with Reli"are Insurance Ad!isory -er!ices 4imited# As composite insurance broker, we would deal in both insurance and reinsurance, pro!idin" our clients risk transfer solutions on life and non8life sides#

This ser!ice will take benefit of Reli"are3s !ast business empire spread throu"hout the country pro!idin" our !alued clients insurance ser!ices across India# 'e aim to ha!e a wide reach with our ser!ices H literallyI That3s why we are caterin" the insurance re7uirements of both retail and corporate se"ments with products of all the insurance companies on life and non8life side still, there is more in store# 'e also cater indi!iduals with a complete suite of insurance solutions, both life and "eneral to miti"ate risks to life and assets throu"h our e+istin" network of o!er *9) *)

branches H e+pected to reach (9) by the end of this yearI

R!%&'ar! S!(ur&t&!s Lt). CRSLE

'e feel immensely pri!ile"ed in introducin" Reli"are -ecurities 4imited, a company mana"ed and controlled by Ranba+y promoters and presently amon" the leadin" brokera"e house of India# The primary focus of R-4 is to cater to ser!ices in ,apital Market 5perations to Institutional In!estors# The ,ompany is a member of the $ational -tock 2+chan"e D$-2E and 5T,2I# The "rowin" list of the financial institutions with whom R-4 is empanelled, as appro!ed :roker which is a reflection of the hi"h le!els of ser!ices maintained by the ,ompany# As on date the ,ompany is empanelled with Alliance ,apital AM,, &TI, ID:I, I.,I, -:I, :5I8M., Pun ab $ational :ank, P$:8M., 5riental Insurance, GI,, &TI85ffshore, I,I,I ,an bank M., Pun ab ; -ind :ank, Pioneer ITI, -&$ .;,, ID:I Principal, Prudential I,I,I, I$G :arin" and J M Mutual .und#

Reli"are in recent past has been constantly inno!atin" in terms of the product and ser!ices, which it offers, and in this respect it has started a premium $RI, .Is, 1$Is and ,orporate -er!icin" "roup# This "roup specifically caters to the "rowin" in!estment needs of these premium client cate"ories by takin" all their portfolio in!estment decisions dependin" upon their risk K return parameter#

Reli"are has a !ery credible team in its Research ; Analysis di!ision, which not only caters to the need of our Institutional clientele but also "i!es their !aluable input to In!estment Dealers#

**

Reli"are is also "i!in" in house depository ser!ices to its clientele and it is amon" one the leadin" depository ser!ices pro!ide amon" country# Presently it mana"es more than Rs# <))) ,rores worth of shares under its electronic custody#

9a($'r1un) 12 R!%&'ar! S!(ur&t&!s Lt)

Reli"are -ecurities 4imited, a Ranba+y Promoter Group ,ompany, was founded by late Dr# Par!inder -in"h D,MD Ranba+y 4aboratories 4imitedE, with the !ision of pro!idin" inte"rated financial care dri!en by the relationship of trust ; confidence# To reali6e its !ision the Reli"are "roup pro!ides !arious financial ser!ices which include brokin" Dstocks ; commoditiesE, depository participant ser!ices, portfolio mana"ement ser!ices, ad!isory on mutual fund in!estments and many more# 'orkin" on the philosophy of bein" /.inancial ,are Partner0, Reli"are unlike other traditional brokin" firms not only e+ecutes the trades for the clients but also pro!ides them critical and timely in!estment ad!ice# The "rowin" list of financial institutions with which Reli"are is empanelled as an appro!ed broker is a reflection of the hi"h le!els of ser!ice standard maintained by the company# Reli"are is a truly professional financial ser!ice pro!ider mana"ed by a team of hi"hly skilled professionals who ha!e pro!en track record in their respecti!e domains# Reli"are has the widest reach throu"h its Re"ional, Lonal and :ranch 5ffices spread across the len"th ; breadth of the country#

*(

N1?a)a,s R!%&'ar!
is dri!en by ethical and dynamic process for wealth creation# :ased on this, the company started its endea!or in the financial market#

8 An ISO ;77* A .777 (1"pan,


8 8 Member of $ational -tock 2+chan"e D$-2E since $o!ember *GG>, first deposit based Member of :-2#

8 D!p1s&t1r, Part&(&pant ?&t#

8 $ational -ecurities Depository 4imited D$-D4E since July ())) 8 8 ,entral Depository -er!ices DIndiaE 4imited D,D-E since .ebruary ())< 8 -2:I Appro!ed Portfolio Mana"er 8 'orkin" on the Philosophy of bein" /.inancial ,are Partner0 8 Amon" the leadin" ser!ice pro!ider in ,apital Market R!%&'ar! Ent!rpr&s!s L&"&t!) DA Ranba+y Promoter Group ,ompanyE throu"h Reli"are -ecurities 4imited, Reli"are .ine!est 4imited, Reli"are ,ommodities 4imited and Reli"are Insurance Ad!isory -er!ices 4imited pro!ides inte"rated financial solutions to its corporate, retail and wealth mana"ement clients# Today, we pro!ide !arious financial ser!ices which include In!estment :ankin", ,orporate .inance, Portfolio Mana"ement -er!ices, 27uity ; ,ommodity :rokin", Insurance and Mutual .unds# Plus, there3s a lot more to come your way#

*<

Pr!s!n(!

R!%&'ar! is present in more than *9) branches all o!er India and the tar"et is to cross <9) branches !ery soon# 5ur branches are fully e7uipped with hi"h bandwidth internet lines and hi"h end computers i#e# the latest IT tools# There are efficient branch mana"ers and dealers to "i!e you tips of hi"hest 7uality and accuracy with support from our analysts# 5ur branches would make you feel like doin" business in Dalal -treet howe!er, in a more sophisticated manner# Mou "et to work with more traders and learn more and also trade more#

In2rastru(tur!

O22&(!s The company has offices located at prime locations in Mumbai, $ew Delhi, %olkatta and ,hennai# The offices are centrally located to cater to the re7uirements of institutional and corporate clients and retails clients, and for ease of operations due to pro+imity to stock e+chan"es and banks# Today, we ha!e a "rowin" network of *9) branches and more than <)) business partners spread across *@) cities in India and a fully operational international office at 4ondon 2rrorN Reference source not found 2rrorN Reference source not found

*>

MANAGEMENT
Reli"are is led by indi!iduals who are professionals and leaders in e!ery sense of the word#

91ar) 12 D&r!(t1rs Mr.Harpa% S&n'#


More than (C years of e+perience in the corporate sector Director H Ranba+y 4aboratories 4imited ,hairman8.ortis 1ealthcare 4imited and .ortis .inancial -er!ices 4imited

Mr. S#& &n)!r M1#an S&n'#


Joint Mana"in" Director of .ortis 1ealthcare and -R4 Ranba+y Director in .ortis .inancial -er!ices 4imited and .ortis ,omde+ 4imited#

Mr. Ma% &n)!r M1#an S&n'#


President, Pharmaceuticals and 2+ecuti!e Director at Ranba+y 4aboratories 4imited Director in .ortis 1ealthcare 4imited, .ortis .inancial -er!ices 4imited and .ortis ,omde+ 4imited.

Mr. Sun&% G1)#?an&


,hief 2+ecuti!e 5fficer and Mana"in" Director of .ortis -ecurities 4imited 2+perience of mana"in" lar"e businesses for more than *9 years .

Mr. S#a(&n)raNat# A
Group ,hief operatin" 5fficer, Reli"are securities ltd#

Mr. An&% Sa+!na


*9

Group chief .inance 5fficer, Reli"are -ecurities #ltd

STRUCTURE OF THE ORGANIFATION


The company owes its success to its stron" mana"ement team, most of which has been there since its inception#

Or'an&Gat&1n Stru(tur!A
$ational -ales and Marketin" 1ead

Vice President8In!estment Assistant Vice President8In!estment Lonal mana"er in!estment -enior In!estment mana"er

Vice President8-ales Assistant Vice President8-ales Re"ional -ales 1ead :ranch Mana"er *A

Mana"er In!estment

Team 4eader

Relationship Mana"er Associate Relationship Mana"er Asst# Relationship Mana"ers Relationship 2+ecuti!e

'e are pro!idin" 5ffline tradin" facility throu"h 5DI$ -oftware#

DIET ODIN

*C

9us&n!ss Pr12&%!
Reli"are 2nterprises, a Ranba+y promoter "roup company, is the holdin" company for inte"rated financial ser!ices# The company was incorporated as a pri!ate limited company on Jan# <), *G@> and the status chan"ed to a public limited company on Au"# **, ())A#

The company is the holdin" company for all businesses, structured and bein" operated throu"h !arious subsidiaries# It offers a wide ran"e of financial products and ser!ices across the three key business !erticals of retail, wealth mana"ement and the institutional spectrum# Retail ser!ices include e7uity and commodities brokera"e, personal financial ser!ices Dincludin" insurance brokera"e and mutual fund distributionE, 4A-, personal loans, and internet tradin"# 'ealth ser!ices include PM-, wealth ad!isory ser!ices and pri!ate client e7uity ser!ices Dincludin" international e7uity ser!icesE# The Institutional ser!ices include institutional distribution ser!ices, in!estment bankin" and transaction ad!isory ser!ices# The subsidiaries of the company include Reli"are -ecurities, Reli"are in!est, Reli"are ,ommodities, Reli"are Insurance :rokin", Reli"are Venture ,apital, Reli"are Realty, Reli"areInsurance 1oldin" ,ompany, Reli"are .inance, Reli"are ,apital Markets and Reli"are 'ealth Mana"ement -er!ices# The company has a 9)N9) oint !enture with AustraliaOs Mac7uarie :ank for e+pandin" its wealth mana"ement business in India#

Reli"are is proud of bein" a truly professional financial ser!ice pro!ider mana"ed by a hi"hly skilled team, who ha!e pro!en track record in their respecti!e domains# Reli"are operations are mana"ed by more than ())) hi"hly skilled professionals who subscribe to Reli"are philosophy and are spread across its country wide branches# *@

The companyOs retail network is spread across more than *(*C locations in more than <G( cities and towns# It operates from si+ re"ional offices and (9 sub8re"ional offices with business associates all o!er India and a representati!e office in 4ondon# Reli"are has a "rowin" network of more than*9) branches and more than <)) business partners spread across more than*@) cities in India and a fully operational international office at 4ondon# The company is a member of the $ational -tock 2+chan"e of India, :ombay -tock 2+chan"e of India, depository participant with $ational -ecurities Depository and ,entral Depository -er!ices India, and -2:I appro!ed portfolio mana"er# The re"istered and corporate office of the company is located at MaladD'estE,Mumbai

FUTURE PLANS
The !ision is to build Reli"are as a "lobally trusted brand in the financial ser!ices domain and present it as the BIn!estment Gateway of IndiaB# All employees of the "roup, currently more than G,9)) in number, ceaselessly stri!e to pro!ide financial care dri!en by the core !alues of dili"ence and transparency# The company will use funds raised throu"h the initial public offerin" IP5 to e+pand domestic operations and network of branches, fund retail finance business, and e+pand financin" acti!ity#

DEPOSITOR> SERVICES
Depository is a facility for holdin" securities, which enables securities transactions to be processed by book entry# In addition to the core ser!ices of electronic custody and trade *G

settlement ser!ices, it pro!ides special ser!ices like pled"e, hypothecation of securities, automatic deli!ery of securities to clearin" corporations, distribution of cash and non8cash corporate benefits, stock lendin", distribution of securities allots in case of public issues#

A depository can be compared to a bank# A depository holds securities like shares in!estors in electric form# :esides holdin" securities, a depository also pro!ides ser!ices related to transactions in securities#

A depository interfaces with the in!estors throu"h it3s a"ents called Depository ParticipantsDD#P#sE#If an in!estor wants to a!ail the ser!ices offered by depository, the in!estor has to open an account with associate relationship mana"er# This is similar to openin" an account with any branch of a bank in order to utili6e the bank3s ser!ices#

Depository Participant DDPENThe in!estor obtains Depository -er!ices throu"h a depository


participant of $-D4# ADP can be a bank, financial institution, a custodian, a broker, or any entity eli"ible as per -2:I DDepositories and ParticipantsE Re"ulations, *GGA# The -2:I re"ulations and $-D4 bye laws also lay down the criteria for any of these cate"ories to become A DP# Just as one opens a bank account in order to a!ail of the ser!ices of a bank, an in!estor opens a depository account with a depository participant in order to a!ail of depository facilities# Thou"h $-D4 commenced operations with ust three DPs, Depository Participant -er!ices are now a!ailable in most of the ma or cities and towns across the country#

Issuin" ,ompaniesK their Re"istrar ; Transfer A"entsN -ecurities issued by issuers who ha!e ()

entered into an a"reement with $-D4 are admitted into the $-D4 depository# As per this a"reement, issuer a"rees to !erify the certificates submitted for dematerialisation before they are dematerialised and to maintain electronic connecti!ity with $-D4# 2lectronic connecti!ity facilitates dematerialisation, rematerialisation, daily reconciliation and corporate actions# $-D4 is electronically linked to each issuer company or its R;T a"ent# This facilitates dematerialisation, rematerialisation, daily reconciliation and corporate actions#

,learin" ,orporation K 1ouseNThe clearin" corporationsKhouses of stock e+chan"es also


ha!e to be electronically linked to the depository in order to facilitate the settlement of the trades done on the stock e+chan"es for dematerialised shares# At present, all the ma or clearin" corporationsKhouses of stock e+chan"es are electronically connected to $-D4# R-4 pro!ides depository ser!ices to in!estors as a Depository Participant with $-D4 and ,D-4# The Depository system in India links issuers, Depository Participants, Depositories $ational -ecurities Depository 4imited D$-D4E and ,entral Depository -er!ices DIndiaE 4imited D,D-4E and clearin" houses K clearin" ,orporation of -tock 2+chan"es# These facilitate holdin" of securities in demateriali6ed form and securities transactions are processed by means of account transfers# 5ur customer centric account schemes ha!e been desi"ned keepin" in mind the in!estment Psycholo"y# 'ith a competent team of skilled professionals, we mana"e o!er >*),))) accounts and ha!e a dedicated customer care centre, e+clusi!ely trained to handle 7ueries from our customers# 'ith our country wide network of branches, you are ne!er far from depository ser!ices of Reli"are#

(*

Reli"are3s depository ser!ice offers you a secure, con!enient, paperless and cost effecti!e way to keep track of your in!estment in shares and other instruments o!er a period of time, without the hassle of handlin" physical documents# Mour DP account with us takes care of your depository needs like demateriali6ation, re8materialisation, transfer and pled"in" of shares, stock lendin" and borrowin"#

Mour demat account is safe and absolutely secure in our hands, e!ery debit instruction is e+ecuted only after its authenticity is established#

5ur hi8tech in8house capabilities cater to the needs of software maintenance, database administration, network maintenance, backups and disaster reco!ery# This e+tra co!er of security has "ained the trust of our clients

COMMODITIESAH Intr1)u(t&1n
'e at Reli"are belie!e in pro!idin" independent research for clients to make in!estment decisions, with strict emphasis on self8re"ulation, a!oidin" possible conflict of interest in ob ecti!ity# Varied research reports are prepared on different cate"ories of commodities#

R!p1rts 1n M!ta%s A

Daily Market ,ommentary on e+chan"e turno!er alon" with turno!er of top traded commodities? national and international news update on commodities#

Daily Research Reports on metals and ener"y#

((

2!enin" ,apsule on 4M2 stocks, -upport, Resistance and market outlook, Daily 2conomic releases#

'eekly 2conomic ,alendar

R!p1rts 1n A'r&(u%tur! A

Daily -pot Market 5!er!iew on spot market price trends, top traders outlook and important news with re"ard to particular commodities#

Daily Report on a"ri8commodities

INSURANCE Intr1)u(t&1n
Reli"are Insurance :rokin" 4imitedDRI:4E, a subsidiary of Reli"are 2nterprises 4imited with a mission to create and institutionali6e an ethical, process dri!en client centric approach backed by the ri"ht e+pertise, sharp insi"hts and inno!ation, benchmarked a"ainst "lobal best practices# 'e en!isa"e to become IndiaBs most credible, trusted and holistic multi brand Insurance solutions partner#

Reli"are Insurance :rokin" 4imited DRI:4E, a Reli"are 2nterprises 4imited !enture is one of IndiaBs leadin" insurance brokin" firms, with one of the lar"est retail networks in the country# The company holds a composite brokerBs license operatin" in the 4ife, $on8life and Reinsurance domains# (<

As part of its recent initiati!es the "roup has also started e+pandin" "lobally# Reli"are has also successfully partnered with Ae"on, one of the "lobal leaders to launch 4ife Insurance and Mutual fund products in India# RI:4 not only pro!ides customi6ed solutions to indi!idual clients but also to some of the leadin" corporate houses and institutions across the country#

True to its spirit, the company proacti!ely represents and champions the interests of its clients tirelessly to leadin" insurance companies# 'ithin a short span of time we ha!e built a close relationship with all the leadin" insurance companies in the country# 5ur team across the country is dri!en by the core philosophy of creatin" and deli!erin" !alue to its customers# 5ur stren"ths are a team of passionate professionals, a robust IT infrastructure and stron" risk analysis teams adept at identifyin" ; analy6in" your risks and pro!idin" you with tailor made solutions#

In !st"!nt 9an$&n'
'e pro!ide inno!ati!e, inte"rated and best8fit solutions to our corporate customers# It is our continuous endea!or to pro!ide !alue enhancement throu"h di!erse financial solutions on an on"oin" basis, throu"h offerin"s like ,orporate Debt, Pri!ate 27uity, IP5, 2,:, .,,:, GDRKADR etc#

In !st"!nt 9an$&n' ?&t# R!%&'ar! 122!rs t#! 21%%1?&n' s!r &(!sA


C1rp1rat! F&nan(! 'e focus on findin" ri"ht and rele!ant partners for our clients, who not only help in addin" !alue but also impro!e the future !aluation of the or"ani6ation# 'e speciali6e in structured financin" and pro!idin" ad!isory ser!ices related to financial plannin", modelin" and ad!isin" on financial

(>

re7uirements# C1rp1rat! 2&nan(! pr1)u(ts 122!r!) /, usA

P%a(!"!nt 12 D!/t

-yndication of Domestic 4oan K .orei"n ,urrency 4oan -ecuritisation Debt -wap ; 4oan Restructurin" -hort Term ,orporate Debt 'orkin" ,apital D,ash ,redit ; -hort term 4oanE ,apital Market Instruments 5!erseas Ac7uisition

P%a(!"!nt 12 EIu&t, CPr& at! EIu&t,E

:oth for listed and unlisted companies

M!r(#ant 9an$&n'

IP5K.P5KRIG1TMer"ers ; Ac7uisitions ,orporate Ad!isory -er!ices ADRKGDRK.,,: :uy back of shares

(9

Reli"are -ecurities 4imited DR-4Eis a leadin" e7uity and securities firm in India# The
company currently handles si6eable !olumes traded on $-2 and in the realm of online tradin" and in!estments it currently holds a reasonable share of the market# The ma or acti!ities and offerin"s of the company today are 27uity brokin", Depository Participant -er!ices, Portfolio Mana"ement -er!ices, Institutional :rokera"e ; Research, In!estment :ankin" and ,orporate .inance# To broaden the "amut of ser!ices offered to its in!estors, the company has also recently un!eiled a new a!atar of itBs online in!estment portal armed with a host of re!olutionary features R-4 is a member of the $ational -tock 2+chan"e of India, :ombay -tock 2+chan"e of India, Depository Participant with $ational -ecurities Depository 4imited and ,entral Depository -er!ices DIE 4imited, and -2:I appro!ed Portfolio Mana"er

Int!rnat&1na% A) &s1r,AHInternational Ad!isory .und Mana"ement -er!ices DA.M-E 8 A


new hori6on for international in!estments#

'e pro!ide our wealth clients an opportunity to in!est in international financial instruments Dcurrently limited to the &-E# 27uities, Mutual .unds and Debts are some of the key instruments a!ailable and the clients ha!e the option to choose from !arious asset allocation modules#

W#, In !st O !rs!asJ


portfolio di!ersification

Global outreach of opportunities (A

Pre8appro!ed route for resident indi!iduals to in!est D1ealthy Go!t# Patrona"e and fa!orable re"ulatory de!elopmentsE#

C1nta(t In21r"at&1n
!ishal#mulchandaniPreli"are#in www#reli"areonline#com www#reli"are#in 'ebsite httpNKKwww#reli"are#in

Inst&tut&1na% 9r1$&n' S!r &(!s


The mission of this di!ision is to institutionali6e and implement a process dri!en approach to cater to the needs of leadin" corporate houses and institutions# The di!ision would like to be seen as a one stop in!estment "ateway and knowled"e repository for its clients ser!icin" their uni7ue and sophisticated needs# The di!ision is structured as a separate -:& and is housed out of Mumbai, manned by a small yet fleet footed and e+tremely skilled "roup of top notch professionals drawn from the best in the industry# The key hi"hli"hts of our ser!ice platter areN

1i"hly skilled, dedicated dealin", research and sales teams (C

Dealin" capabilities on the $-2, :-2 and in the cash and deri!ati!es se"ment In8depth, detailed and insi"htful co!era"e of more than A) stocks across di!erse sectors# The sectors co!ered are .M,G, 1otels, Media, Pharma, Auto, ,ement, -teel pipes, 4o"istics, Telecom, ,onstruction and much more#

5ur ,urrent clientele includes some ma or domestic Mutual .unds, Insurance ,ompanies, :anks and .II3s

9!n!2&ts 12 )!p1s&t1r,AH
Immediate transfer of securities? Immediate transfer of securities? $o stamp duty on transfer of securities? 2limination of risks associated with physical certificates such as bad deli!ery, fake securities,etc#? Transmission of securities is done by DP eliminatin" correspondence with companies? ,on!enient method of consolidation of foliosKaccounts? 1oldin" in!estments in e7uity, debt instruments and G8-ecs in a sin"le account? faster settlement cycle faster disbursement of non cash corporate benefits like ri"hts, bonus, etc reduction in handlin" of hu"e !olumes of paper#

Fa(&%&t&!s 122!r!) /, )!p1s&t1r, s,st!"


Demateriali6ation i#e#, con!ertin" physical certificates to electronic form? Remateriali6ation i#e#, con!ersion of securities in demat form into physical certificates? (@

2lectronic settlement of trades in stock e+chan"es connected to $-D4? .ree6in" of demat accounts, so that the debits from the account are not permitted? $omination facility for demat accounts? -er!ices related to chan"e of address? 2ffectin" transmission of securities?

D!p1s&t1r, s,st!" sa2!t, 2!atur!s


-trict norms for becomin" a depository participant DDPE, $et worth criteria, -2:I appro!al etc# is mandatory# DP#These in!estors can transfer their holdin"s to an account held with another DP# ,ompulsory internal audit of operations of DP by practicin" company secretary or chartered accountant e!ery 7uarter# Various procedures for backup and safekeepin" of data at all le!els#

D!p1s&t1rsAH
There are two depositories in IndiaN8 *# (# $ational -ecurities Depository 4imitedD$-D4E# ,entral Depository -er!icesDIndiaE4imitedD,D-4E

9ASIC SERVICES
&nder the pro!isions of the depositories Act,$-D4 pro!ides !arious ser!ices to in!estors and other participants in the capital market like, Accounts maintenance Dematerili6ation (G

Rematerili6ation Market transfers 5ff8market transfers Inter8depository transfers ,orporate actions Transmission Auction

A((1unt "a&nt!nan(!AH
5penin" of account
Just as in a bank, openin" an account is the first step that an in!estor intends to hold scrips in demat form in the depository system# The in!estor can open account with Reli"are#An in!estor may open an account with se!eral DPs or he may open se!eral accounts with a sin"le DP#

T,p!s 12 a((1unt
5n this basis, depository account of !arious market participants may be cate"ori6ed into the followin" typesN8 DaE :eneficiary Account DbE ,learin" Member Account DcE Intermediary Account

CaE 9!n!2&(&ar, A((1untA This is an account opened by in!estors to hold their securities in demateriali6ed form with a depository and to settle the transactions of sale and purchase of securities in book8entry form throu"h the depository system# An account holder is le"ally entitled for all ri"hts and liabilities attached to the securities Di#e#, e7uity shares, debentures, "o!ernment securities, etc#Eheld in that <)

account# Therefore, the account is called /beneficial owner account0 also#.or the purpose of !erification, all in!estors ha!e to submit the followin" documents alon" with the prescribed account openin" form# *# Proof of Identity in the form of applicant3s si"nature and photo"raph authenticated by an e+istin" account holder or by applicant3s bank (# Proof of residence in the form of ration card, passport, election !otin" card, income ta+ PA$ card, dri!in" license, bill for electricity or "as, etc# This is re7uired to confirm an ascertain the correct identity and establish correct address of the account holder# <# Passport8si6e photo"raph# After the form is filled and aKc is opened, a client master list is "i!en to the client that is the copy of the aKc opened alon" with the client id, DP ID no# The client ID no# and DP Id no#

C/E C%!ar&n' M!"/!r A((1untA Member brokers of those stock e+chan"es which ha!e established electronic connecti!ity with $-D4 need to open a clearin" member account, with Reli"areD DP of his choiceE, to clear and settle trades in the demat form# This account is meant only to transfer shares to and recei!e shares from the clearin" corporationK house and hence, the member broker does not ha!e any ownership DbeneficiaryE ri"hts o!er the shares held in such an account# *# All members of a stock e+chan"e popularly known as brokers are clearin" members? (# ,ustodians who are permitted by the stock e+chan"e to act as a clearin" member# 5nce these details are entered in the system, a /,learin" Member :usiness Partner0 identity number is "enerated D,M8:P8IDE# 'ith this ID, the account "ets acti!ated#

<*

C(E Int!r"!)&ar, A((1untA Any person desirin" to act as an appro!ed BintermediaryB for stock lendin" and borrowin" needs to open an intermediary account with any DP of his choice# As per -2:I Re"ulations on stock lendin" and borrowin", only a 7ualified intermediary can lend and borrow stocks from clients# This intermediary borrows from lenders and lends to borrowers# Intermediaries re"istered with -2:I as appro!ed intermediary account with Reli"are Da DP of its choiceE, for e+ecutin" stock lendin" and borrowin" transactions made throu"h them# An intermediary account may be opened only after obtainin" re"istration from -2:I under an appro!ed -tock 4endin" -cheme, and "ettin" the appro!al of the depository for openin" the account# The intermediary does not ha!e any ownership DbeneficiaryE ri"hts o!er the shares held in such an account# An aKc can ha!e ma+imum three oint holders# 1olders may be more than three after followin" some instructions "i!en by -2:I# There is separate aKc of each holder# Various ser!ices offered by DPs with respect to these accounts are as followsN

Fr!!G&n' 12 A((1untsA
Account free6in" means suspendin" any further transaction from the depository account till the account is de8fro6en# A depository account maintained with a DP can be fro6en if the DP recei!es a written instruction in prescribed form from the client# A fro6en account can be de8 fro6en or re8acti!ated if the client submits written instruction in prescribed form to the DP#

N1"&nat&1nA
A client can make a nomination of his account in fa!our of any person by filin" the nomination form with his DP# -uch nomination is considered to be conclusi!e e!idence of the account holderBDsE disposition in respect of all the securities in the account for which the nomination is made#

C#an'! &n A))r!ssA


<(

The client can chan"e his address by submittin" the chan"es in writin" to the DP# The chan"es con!eyed to the DP will be automatically communicated to the companies in which he is holdin" shares in dematerialised form#

9an$ A((1unt D!ta&%sA


Details of bank account of the clientN8 *# G8di"it code number of the bank and branch appearin" on the MI,R che7ues issued by the

bank ha!e to"i!en to the DP at the time of account openin"# (# ,ompanies use this information for printin" them on di!idendKinterest warrants etc# to pre!ent its misuse

C1ns1%&)at&1n 12 A((1untsA
-ome clients could ha!e opened multiple accounts to dematerialise their shares held in multiple combinations ; se7uence of names# 1owe!er, they may not need so many accounts after they ha!e dematerialised their shares and may want to brin" all their shareholdin"s into one or fewer #

<<

DEMATERIALIFATION
Demateriali6ation is the process by which physical certificates of an in!estor are con!erted to e7ui!alent number of securities in electronic form and credited in the in!estor3s account with his DP# Demat account allows you to buy, sell and transact shares without the endless paperwork and delays# It is also safe, secure and con!enient#

'hat is De8mat accountI


Just as you ha!e to open an account with a bank if you want to sa!e your money, make che7ue payments etc, you need to open a demat account if you want to buy or sell stocks# -o it is ust like a bank account where actual money is replaced by shares#

.or e+ampleN8
4et3s say your portfolio of shares looks like thisN8 >) 8 of Infosys# (9 8 of 'ipro >9 8 of 144 and *)) 8 of A,,# All these will show in your demat account# -o you donBt ha!e to possess any physical certificates showin" that you own these shares# They are all held electronically in your account# As you buy and sell the shares, they are ad usted in your account# Just like a bank passbook or statement#

Is a demat account a mustQ


$owadays, practically all trades ha!e to be settled in dematerialised form# Althou"h the market <>

re"ulator, the -ecurities and 2+chan"e :oard of India D-2:IE, has allowed trades of upto 9)) shares to be settled in physical form, nobody wants physical shares any more# -o a demat account is a must for tradin" and in!estin"#

'hy dematQ
The demat account reduces brokera"e char"es, makes pled"in"Khypothecation of shares easier, enables 7uick ownership of securities on settlement resultin" in increased li7uidity, a!oids confusion in the ownership title of securities, and pro!ides easy receipt of public issue allotments# It also helps you a!oid bad deli!eries caused by si"nature mismatch, postal delays and loss of certificates in transit# .urther, it eliminates risks associated with for"ery# you can check on your holdin"s, transactions and status of re7uests throu"h the net bankin" facility

Documents re7uired
1ere is a broad list Dyou wonBt need all of them thou"hEN R PA$ card R VoterBs ID R Passport R Ration card R Dri!erBs license R Photo credit card R 2mployee ID card R :ank attestation

<9

C#ar'!sAH
Account8openin" fee
Dependin" on the DP, there may or may not be an openin" account fee# Pri!ate banks, such as I,I,I :ank,Indiabulls ,1D., :ank and &TI :ank, do not ha!e one# 1owe!er, players such as %ar!y ,onsultants and the -tate :ank of India do so# :ut most players le!y this when you re8 open a demat account, thou"h the -tock 1oldin" ,orporation offers a lifetime account openin" fee, which allows you to hold on to your demat account o!er a lon" period# This fee is refundable#

Annual maintenance fee


This is also known as folio maintenance char"es, and is "enerally le!ied in ad!ance#

,ustodian fee
This fee is char"ed monthly and depends on the number of securities Dinternational securities identification numbers S I-I$E held in the account# It "enerally ran"es between Rs )#9 to Rs * per I-I$ per month# DPs will not char"e custody fee for I-I$ on which the companies ha!e paid one8time custody char"es to the depository#

Transaction fee
The transaction fee is char"ed for creditin"Kdebitin" securities to and from the account on a monthly basis# 'hile some DPs, such as -:I, char"e a flat fee per transaction, 1D., :ank and I,I,I :ank pe" the fee to the transaction !alue, sub ect to a minimum amount# The fee also differs based on the kind of transaction Dbuyin" or sellin"E# Demateriali6ation normally takes about *8( week#

<A

REMATERIALIFATION
Rematerili6ation is the e+act re!erse of demateriali6ation# It is the process by which a client can "et his electronic holdin"s con!erted into physical certificates# It refers to the process of issuin" physical securities in place of the securities held electronically in book8entry form with a depository#

&nder this process, the depository account of a beneficial owner is debited for the e7ui!alent number of securities isKare issued# The client has to submit the rematerili6ation re7uest to the DP with whom he has an account# T A client can rematerialise his dematerialised holdin"s at any point of time# T Therematerialisation process is completed appro+ *) days# T The securities sent for rematerialisation cannot be traded#

Mar"in Tradin"N Introduction


Ima"ine thisN youBre sittin" at the black ack table and the dealer throws you an ace# MouBd lo!e to increase your bet, but youBre a little short on cash# 4uckily, your friend offers to spot you U9) and says you can pay him back later# Temptin", isnBt itQ If the cards are dealt ri"ht, you can win bi" and pay your buddy back his U9) with profits to spare# :ut what if you loseQ $ot only will you be down your ori"inal bet, but youBll still owe your friend U9)# :orrowin" money at the casino is like "amblin"8on8steroidsN the stakes are hi"h and your potential for profit is dramatically increased# ,on!ersely, your risk is also increased#

O22 "ar$!t tra)!rs


<C

Tradin" in dematerialised securities is 7uite similar to tradin" in physical securities# The ma or difference is that at the time of settlement, instead of deli!eryKreceipt of securities in the physical form, the same is affected throu"h account transfers#

Trans"&ss&1n
5ne of the lesser8known but widely e+perienced problems with respect to dealin" in share certificates is transmission of shares# The ,ompanies Act distin"uishes transmission of shares from transfer of shares# 'hile transfer of shares relates to a !oluntary act of the shareholder, transmission is brou"ht about by operation of law# The word BtransmissionB means de!olution of title to shares otherwise than by transfer#

2+ampleN8 de!olution by death, succession, inheritance, bankruptcy, marria"e, etc#

ACCOUNT TRANSFER
The clients send deli!ery instructions to the DP#A form is filled alon" with the specifications of the shares, which ha!e to be transferred# These clients re"ularly purchase and sell securities# Account transfer can be off8market or on8market# .irst Vcaptured3 then Vin transit to $-D43 and lastly Vaccepted by $-D43 is shown on the forms#

Tradin" in :-2N8
The software used is :ombay 5n 4ine Tradin" D:54TE#The inde+ used is -ense+ i#e# sensiti!ity inde+# .ollowin" items are shown on the :54T screen#

5rder entryN shows the !olume of transactions entered Din lacsE

<@

TouchlineN the current rate of the scrip mentioned# Market lot# ,odeN This code no# is assi"ned by :-2 for identification of each scrip# -crip "roupN 5n :-2 securities are classified into "roups like :*, A etc# These

"roups are assi"ned on the basis of different time period on which they were declared for demat# The ne+t line is for order placement in which the 7uantity to be bou"ht and sold and the price is mentioned in the Vretain till bo+3# 'ith the order client, no# is mentioned# 5ne can also see the net position and the a!era"e rate of particular scrip#

Tradin" in $-2
The software used is $ational 2+chan"e for Automated Tradin" D$2ATE#The inde+ used is $I.TM D$ational Inde+ of .ifty ,ompaniesE#There are about G)) scrips listed on this e+chan"e# The screen appears as followsN -ellin" price i#e# the price at which $-2 is willin" to sell alon" with !olumeK7uantity of transaction# :uyin" price i#e# the price at which $-2 is willin" to buy alon" with !olumeK7uantity of transaction# Price shown in red rectan"le denotes a decrease in the price of securities# Price shown in blue rectan"le denotes increase in the price of securities# 1i"hest and lowest price#

<G

S12t?ar! t11%s
Tradin" confirmation slip Place order window Modification and cancellation of bid

Tra)&n' "!(#an&s"
Tradin" in 27uity Deri!ati!e Instruments has commenced in India in a separate se"ment of e+istin" stock, e+chan"es known as BDeri!ati!es -e"mentB# Thus, for all practical purposes, both the parties to an 27uity deri!ati!e Instruments contract would be assured that the obli"ations of the other party would be met 8either by the party itself or, in the e!ent of default on the party or the party, by the ,learin" ,orporation# A ,lient can trade in 27uity Deri!ati!e instruments only throu"h a Tradin" Member, of the e+chan"e# The -ettlement DateK2+piry Date adopted by :-2 and $-2 is the last Thursday of a ,ontract Month# In both :-2 and $-2, the 27uity Deri!ati!e Instruments contracts will ha!e a ma+imum of three month tradin" cycle8the near month DoneE, the ne+t month DtwoE and the far month DthreeE# Thus, in Au"ust ())G, one would be able to enter into futures contracts for the months of Au"ust ())G, -eptember ())G and 5ctober ())G# 5n (@th Au"ust, ())G Dlast Thursday of Au"ust ())GE the 27uity Deri!ati!e Instruments contracts for Au"ust ())G series will be finally settledKwill e+pire and thereafter tradin" in $o!ember ())G series will start# 2!ery ,lient is re7uired to pay an initial mar"in to the Tradin" MemberK,learin" Member at the time of enterin" into an 27uity Deri!ati!e Instruments contract# -uch a mar"in is calculated by usin" -oftware called B-tandard Portfolio Analysis of RiskB D-PA$E# -PA$

>)

calculates risk arrays for all the open positions on an o!erall basis and "i!es the output in the form of a risk parameters file# This risk parameters file is made a!ailable to all the participants of Deri!ati!es -e"ment# Members and ,lients use the data from -PA$ risk file, to"ether with their position data, to calculate -PA$ mar"in re7uirements on their respecti!e positions on daily basis# -PA$ calculates the mar"in by determinin" the worst possible loss usin" *A risk scenarios# The ,lients pay the deficit mar"in to, or recei!e the refund of e+cess mar"in from, the Tradin" MemberK,learin" Member on daily basis# payRs# () to the ,learin" 1ouse# The position for the subse7uent days up to March <* would be as followsN

Assumed Daily -ettlement Price DRs#E March <) *,><9 Recei!e Rs# <9 March <* *,><) Pay Rs#9

9u, 1r s!%% 1r)!rsAH


The system functions on a price8time priority basis# The system arran"es order in the priority of price and within price by time# If a buy of *)) shares of Reliance at Rs#<)) is placed by one in!estor and another in!estor has placed a buy order for *)) shares of Reliance at Rs#<*) then anybody who places a sell order in Reliance will be first matched with the second in!estors he is offerin" a better price# This is price priority# If both the 7uotes are at suppose Rs#<)) then any sell order, which comes under the system at this price, will be matched a"ainst the first order# This is time priority# 2!ery buyer has to place his order on system and the system will automatically match the order

>*

with the best sell order a!ailable in the system at that point of time# If there is no order e+istin" at that time, the system will store the order books until such time a suitable order materiali6es# This is known as the bid order# A bid can be modified or cancelled before traded# 1ence, manipulation of price is possible# After <N<) p#m#, all untraded bids are automatically cancelled# The icon for buy is DWE and sell is D8E# This is often used terminolo"y#

'hile e+ecutin" the order, information entered is aE Type of transaction Dbuy or sellE bE -crip name cE Market price dE 5rder no# eE ,lient no#

.I.5 Dfirst in first outE method is used to determine the !alue of any item mo!in" out of a stock aKc at any point of time as demat securities are fun"ible# It implies that out of e+istin" holdin", the item that first entered into the aKc is deemed to be the first sold out# # The contents of the net position areN ,lient no# -ecurities Xuantity bou"ht Xuantity sold $et position DWK8E

>(

.unds receipt DWEKpayD8E Tradin" a!era"e ,urrent closin" rate

AUCTION
Auction is a mechanism utili6ed by the e+chan"e to fulfill the obli"ation to a counter party member when a member fails to deli!er "ood securities or make the payments# Throu"h auction, the e+chan"e arran"es to buy "ood securities and deli!er them to the buyin" broker or arran"es to reali6e the cash and pay it to the sellin" broker# Three factors primarily "i!e rise to an auctionN -hort deli!eries &nrectified bad deli!ery &nrectified company ob ection

S#1rt )!%& !r,A


This refers to a situation where a client, who has sold certain shares durin" a settlement cycle, fails to deli!er the shares to the member either fully or partly#

9a) )!%& !r,A


-2:I has formulated uniform "uidelines for "ood and bad deli!ery of documents# :ad deli!ery may pertainN

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To transfer deed bein" torn, mutiliated, o!erwritten, defaced If there are spellin" mistakes in the name of the company or the transferor 2rasure or crossin" out in the characters of folio no#, distincti!e no# ran"e or certificate no# In case of compulsory demat securities physical securities are sent#1owe!er, error in folio no# upto three characters is allowed and physical securities are transferred uptil G) days of bein" included in demat list# After that, any transfer in physical form will be bad deli!ery# All bad deli!eries ha!e to be reported to the ,1 Dclearin" houseE by the buyin" broker within >@ hours of recei!in" the payout, "enerally on .riday#

The deli!erin" broker picks up bad deli!eries, "enerally on -aturday# They are to be rectified or replaced by the deli!erin" broker within >@ hours, "enerally on the followin" Monday# All the rectified or replaced bad deli!eries are paid out to the recei!in" broker "enerally on wednesday#

C1"pan, 1/0!(t&1nA
'hen the securities are recei!ed for transfer, they are done as per the pro!isions of the law# In case transfer does not take place due to si"nature difference or shares are fake, for"ed, or stolen, the company returns the securities "i!in" the details of the "round under which the transfer could not be affected# This is known as the company ob ection# 'hen a company ob ection for transfer is recei!ed, that errorKdiscrepancies may be corrected by the transferor DsellerE either directly or throu"h the broker for replacement with "ood securities# If errors are not rectified or replaced, one has to recourse to the seller and his broker throu"h the stock e+chan"e to "et back the money# 1owe!er, if the transaction was directly with the seller,

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then the matter is to be settled directly#

FINANCIAL DERIVATIVES
.inancial deri!ati!es are not new, they ha!e been around for years# A description of the first known options contract can be found in Aristotle3s writin"s# 1e tells the story of Thales, a poor philosopher from Mellitus who de!eloped a /financial de!ice, which in!ol!es a principle of uni!ersal application#0 People repro!ed Thales, a poor philosopher sayin" that his lack of wealth was proof that philosophy was a useless occupation and of no practical !alue# :ut Thales knew what he was doin" and made plans to pro!e to others his wisdom and intellect# Thales had "reat skill in forecastin" and predicted that the oli!e har!est would be e+ceptionally "ood ne+t autumn# ,onfident in his prediction, he made a"reements with area oli!e8press owners to deposit what little money he had with them to "uarantee him e+clusi!e use of their oli!e presses when the har!est was ready# Thales successfully ne"otiated low prices because the har!est was in the future and no one knew whether the har!est would be plentiful or pathetic and because the oli!e8press owners were willin" to hed"e a"ainst the possibility of a poor yield# Aristotle3s story about Thales ends as one mi"ht "uessN /'hen the har!est8time came, and many YpressesZ were wanted all at once and of a sudden, he let them out at any rate which he pleased, and made a 7uantity of money# Thus so Thales e+ercised the first known options contracts some (9)) years a"o# 1e was not obli"ed to e+ercise the options# If the oli!e har!est had not been "ood, Thales could ha!e let the option contracts e+pire unused and limited his loss to the ori"inal price paid for the options# :ut as it turned out, a bumper crop came in, so Thales e+ercised the options and sold his claims on the oli!e presses at a hi"h profit# 5ptions are ust one type of deri!ati!e instrument# Deri!ati!es, as their name implies, are

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contracts that are based on or deli!ered from some underlyin" asset, reference rate, or inde+#

Most common financial deri!ati!es, described later, can be classified asN Futur!s F1r?ar)s Opt&1ns Three primary forces brou"ht about the e+plosi!e use of financial deri!ati!e products in recent yearsN More !olatile markets Dere"ulation $ew technolo"ies Deri!ati!es are risk8shiftin" de!ices# Initially? they were used to reduce e+posure to chan"es in forei"n e+chan"e rates, interest rates, or stock inde+es# The key to understandin" deri!ati!es is the notion of a premium# -ome deri!ati!es are compared to insurance# Just as you pay an insurance company a premium in order to obtain some protection a"ainst a specific e!ent, there are deri!ati!e products that ha!e a payoff contin"ent upon the occurrence of some e!ent for which you must pay a premium in ad!ance

DERIVATIVES DEFINED
A deri!ati!e is an instrument Dsecurity or contractE that deri!es its !alue from the !alue of an underlyin" asset Dsecurity or a commodityE# .or e+ample, wheat farmers may wish to sell their har!est at a future date to eliminate the risk of achan"e in prices by that date# -uch a transaction is an e+ample of a deri!ati!e# The price of this

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deri!ati!e is dri!en by the spot price of wheat, which is the underlyin"# In the Indian conte+t the -ecurities ,ontracts DRe"ulationE Act, *G9A defines deri!ati!e to include8 *# A security deri!ed from a debt instrument, share, and loan whether secured or unsecured, risk instrument or contract for differences or any other form of security# (# A contract that deri!es its !alue from the prices, or inde+ of prices, of underlyin" securities#

PRODUCTSK PARTICIPANTS AND FUNCTIONS


Deri!ati!e contracts ha!e se!eral !ariants# The most common !ariantsare N F1r?ar)s Futur!s an) Opt&1ns. The followin" are the three broad cate"ories of participantsN H!)'!rs Sp!(u%at1rs Ar/&tra'!urs

H!)'!rsA
They face risk associated with the price of an asset# They use futures or options markets to reduce or eliminate this risk#

Sp!(u%at1rsA
They are based on future mo!ements in the price of an asset# .utures and options can "i!e them e+tra le!era"e? i#e#? they can increase both the potential "ains and potential losses in a speculati!e

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!enture#

Ar/&tra'!rsAThey are in business to take ad!anta"e of a discrepancy between prices in two


different markets# The functions performed areN8 Prices in an or"ani6ed deri!ati!es market reflect the perception of market participants about the future and lead the prices of underlyin" to the percei!ed future le!el# The prices of deri!ati!es con!er"e with the prices of the underlyin" at the e+piration of the deri!ati!es contract# Thus, deri!ati!es help in disco!ery of future as well as current prices#

The deri!ati!es market helps to transfer risks from those who ha!e them but may not like them to those who ha!e an appetite for them#

Deri!ati!es due to their inherent nature are linked to the underlyin" cash markets# 'ith the introduction of deri!ati!es, the underlyin" market witnesses hi"h tradin" !olumes because of participation by more players who would not otherwise participate for lack of an arran"ement of transfer risk#

-peculati!e trades shift to a more controlled en!ironment of deri!ati!es market# In the absence of an or"ani6ed deri!ati!es market, speculators trade in the underlyin" cash market#

An important incidental benefit that flows from deri!ati!es tradin" is that it acts as a catalyst for new entrepreneurial acti!ity# The deri!ati!es ha!e a history of attractin" many bri"ht, creati!e, well8educated people with an entrepreneurial attitude# They often ener"i6e others to create new businesses, new products and new employment opportunities8the benefits of which are immense#

Deri!ati!es markets help increase sa!in"s and in!estment in the lon" run# Transfer of risk

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enables market participants to e+pand their !olume of acti!ity#

FORWARD CONTRACTS
A forward contract is an a"reement to buy or sell an asset on a specified date for a specified price# 5ne of the parties to the contract a"rees to buy the underlyin" asset on a certain specified future date for a certain specified price# The other party a"rees to sell the asset on the same date for the same price# 5ther contract details like deli!ery date, price, and 7uantity are ne"otiated bilaterally by the parties to the contract# The forward contracts are normally traded outside the e+chan"es#

F!atur!s They are bilateral contracts and hence e+posed to counter8party risk# 2ach contract is custom desi"ned, and hence is uni7ue in terms of contract si6e, e+piration date and the asset type and 7uality# The contract price is "enerally not a!ailable in public domain# 5n the e+piration date, the contract has to be settled by deli!ery of the asset#

L&"&tat&1ns DaE4ack of centrali6ation of tradin" DbEIlli7uidity DcE,ounter8party risk

FUTURES CONTRACTS
.utures markets were desi"ned to sol!e the problems that e+ist in forwards markets# A futures contract is an a"reement between two parties to buy or sell an asset at a certain time in the future at a certain price# The futures contracts are standardi6ed and e+chan"e traded# To facilitate >G

li7uidity in the futures contracts, the e+chan"e specifies certain standard features of the contract# It is a standardi6ed instrument that can be deli!ered, Dor which can be used for reference purposes in settlementE and a standard timin" of such settlement# A futures contract may be offset prior to maturity by enterin" into an e7ual and opposite transaction# More than GG= of futures, transactions are offset this way# Distinction between futures and forwards contracts .orward contracts are often confused with futures contracts# The confusion is primarily because both ser!e essentially the same economic functions of allocatin" risk in the presence of future price uncertainty# 1owe!er futures are a si"nificant impro!ement o!er the forward contracts as they eliminate counter8party risk and offer more li7uidity#

.utures .orwards Trade on an or"ani6ed e+chan"e 5T, in nature ,ustomi6ed contract

-tandardi6ed contract terms terms More li7uid Re7uires mar"in payments

4ess li7uid $o mar"in payment -ettlement happens at the

.ollows daily settlement end of period

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OPTION CONTRACTS
5ptions are fundamentally different from forward and futures contracts# An option "i!es the holder of the option, the ri"ht to do somethin"# The holder does not ha!e to e+ercise this ri"ht# In contrast, in a forward or futures contract, the two parties ha!e committed themsel!es to doin" somethin"# 'hereas it costs nothin" De+cept mar"in re7uirementsE to enter into a futures contract, the purchase of an option re7uires an upfront payment# An option "i!es the holder the ri"ht to buy or sell a certain asset Dcalled the underlyin"E byKon a certain date for a certain price#

T,p!s O2 Opt&1ns
Type8I

,all optionN "i!es the holder the ri"ht to buy the underlyin" asset by a certain date for a certain price# Put optionN "i!es the holder the ri"ht to sell the underlyin" asset by a certain price#

Type8II American optionN can be e+ercised at any time up to the e+piration date# 2uropean optionN can be e+ercised only on the e+piration date itself#

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Pr&"ar, 1pt&1n ar&!t&!s


:uyer of the option8lon" position 'riter K seller of the option8short position St1($ 1pt&1nA The underlyin" is a stockKshare# All numerical procedure in their simplest form are deri!ed for these# F1r!+ 1pt&1nA ,ontracts on forei"n currencies# 2ach contract is to buyKsell a certain 7uantum of the stipulated currency# In)!+ 1pt&1nsA ,ontracts where the underlyin" is the set of stocks that constitute a "i!en inde+# 2ach contract is on a certain multiple of the inde+ !alue settled in cash on maturity# Futur!s 1pt&1nA &nderlyin" is a futures contracts# 2+ercise of a call option yields a lon" position in a futures contract and some cash# 2+ercise of a put option yields a short position in a future contract and some cash#

H1? Opt&1ns W1r$


*# 5ptions "i!e you the ri"ht to buy or sell an underlyin" instrument# (# If you buy an option, you are not obli"ated to buy or sell the underlyin" instrument? you simply ha!e the ri"ht to# <# If you sell an option and the option is e+ercised, you are obli"ated to deli!er the underlyin" asset DcallE or take deli!ery of the underlyin" asset DputE at the strike price of the option

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re"ardless of the current price of the underlyin" asset# ># 5ptions are "ood for a specified period of time, after which they e+pire and you lose your ri"ht to buy or sell the underlyin" instrument at the specified price# 9# 5ptions when bou"ht are done so at a debit to the buyer# A# 5ptions when sold are done so by "i!in" a credit to the seller# C# 5ptions are a!ailable in se!eral strike prices representin" the price of the underlyin" instrument# @# The cost of an option is referred to as the option premium# The price reflects a !ariety of factors includin" the current price of the underlyin" asset, the strike price of the option, the time remainin" until e+piration, and !olatility# G# 5ptions are not a!ailable on e!ery stock# There are appro+imately (,()) stocks with tradable options# 2ach stock option represents *)) shares of a companyBs stock#

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CALL OPTION
*# ,all options "i!e traders the ri"ht to buy the underlyin" stock at the strike price until market close on the <rd .riday of the e+piration month# A call option is In8The8Money DITME if its strike price is below the current price of the underlyin" stock# A call option is out8of8the8money D5TME if its strike price is abo!e the current price of the underlyin" stock# A call option is at8the8money DATME if its strike price is the same as Dor close toE the current price of the underlyin" stock# (# :uyin" ,alls 8 If bullish 8 belie!e the market will rise 8 buy D"o lon"E calls# :uyers ha!e ri"hts# A call buyer has the ri"ht, but not the obli"ation, to buy the underlyin" stock at the strike price until the e+piration date# If you buy a call option, your ma+imum risk is the money paid for the option, the debit# The ma+imum profit is unlimited dependin" on the rise in the price of the underlyin" asset# To offset a lon" call, you ha!e to sell a call with the same strike price to close out the position# :y e+ercisin" a lon" call, you are choosin" to purchase *)) shares of the underlyin" stock at the strike price of the call option# <# -ellin" ,alls 8 If bearish 8 belie!e the market will fall 8 sell D"o shortE calls# -ellers ha!e obli"ations# A call seller has the obli"ation to sell *)) shares of the underlyin" stock at the strike price to the person to whom the option was sold, if that person chooses to e+ercise the call option# -ellers ha!e obli"ations# If you sell a call option, your risk is unlimited to the upside# The profit is limited to the credit recei!ed from the sale of the call# 'hen sellin" calls, make sure to choose options with little time left until e+piration# ,all sellers want the call to e+pire worthless so that they can keep the whole premium# To offset a short call, you ha!e to buy a call with the same strike price to close out the position#

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PUT OPTION
*# Put options "i!e traders the ri"ht, but not the obli"ation, to sell the underlyin" stock at the strike price until market close on the <rd .riday of the e+piration month# A put option is In8The8 Money DITME if its strike price is abo!e the current price of the underlyin" stock# A put option is out8of8the8money D5TME if its strike price is below the current price of the underlyin" stock# A put option is at8the8money DATME if its strike price is the same as Dor close toE the current price of the underlyin" stock# (# :uyin" Puts 8 If the options trader is bearish 88 i#e# belie!es the underlyin" stock or inde+ will fall in price 88 the trader can buy D"o lon"E puts# 'hen the put is purchased, it is called an openin" transaction# $ow, the buyer has ri"hts# A put buyer has the ri"ht, but not the obli"ation, to sell the underlyin" stock at the strike price of the option until the e+piration date# .urthermore, if a trader buys a put option, the risk of the trade e7uals the money paid for the option, or the debit# The profit is e7ual to the fall in the price of the underlyin" asset# The profit will result if the underlyin" security mo!es lower# The profit is limited because the underlyin" asset will not fall below 6ero# .inally, to offset a lon" put, the trader will sell a put with the same terms Dstrike price and e+pirationE to [close[ out the position# 5n the other hand, if the trader e+ercises a lon" put, then he or she is sellin", or short, the underlyin" stock or inde+ at the strike price of the put option# <# -ellin" Puts 8 If the options trader is bullish 88 belie!es the market will rise 88 the trade can sell D"o shortE puts# -ellers ha!e obli"ations# A put seller has the obli"ation to buy *)) shares Dper optionE of the underlyin" stock at the put strike price# In other words, the option seller must be

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ready to ha!e the stock [put[ to him or her# The put sellerBs risk is the drop in the stock price, which is limited to the stock fallin" to 6ero# The profit e7uals the credit recei!ed from the sale of the put# Put sellers often prefer options with little time left until e+piration because they want a put to e+pire worthless# In that way, the seller keeps the entire premium#

FUTURES AND OPTIONS


5ptions are different from futures in se!eral interestin" senses# The option buyer pays for the option in full at the time it is purchased# After this, he only has an upside# There is no possibility of the options3 position "eneratin" any further losses to him Dother than the funds already paid for the optionE# This is different from futures, which is free to enter into, but can "enerate !ery lar"e losses# This characteristic makes options attracti!e to many occasional market participants, who cannot put in the time to closely monitor their futures positions# :uyin" put options is buyin" insurance# To buy put option on $ifty is to buy insurance, which reimburses the full e+tent to which $ifty drops below the strike price of the put option# This is attracti!e to many people#

INDE= DERIVATIVES
Inde+ deri!ati!es are deri!ati!e contracts, which deri!e their !alue from an underlyin" inde+# The two most popular inde+ deri!ati!es are inde+ futures and inde+ options# Inde+ deri!ati!es ha!e become !ery popular worldwide# The popularity of inde+ deri!ati!es are due to the ad!anta"es they offerN

Institutional and lar"e e7uity8holders need portfolio8hed"in" facility# Inde+8deri!ati!esare 9A

most suited to them and more cost8effecti!e than deri!ati!es based on indi!idual stocks# Pension funds in the &- are known to use inde+ futures for risk hed"in" purposes# -tock inde+ is difficult to manipulate as compared to indi!idual stock prices, more so in India, and the possibility of cornerin" is reduced# This is partly because an indi!idual stock has a limited supply, which can be cornered# -tock inde+, bein" an a!era"e, is much less !olatile than indi!idual stock prices# This implies much lower capital ade7uacy and mar"in re7uirements# Inde+ deri!ati!es are cash settled and hence do not suffer from settlement delays and

problems related to bad deli!ery, for"edKfake certificates#

FUTURES AND OPTIONS TRADING S>STEM

The futures and options tradin" system of $-2, called $2AT8.;5 tradin" system, pro!ides a fully automated screen based for $ifty futures and options and stock futures and options on a nationwide basis as well as online monitorin" and sur!eillance mechanism# It supports an order dri!en market and pro!ides complete transparency of tradin" operations# It is similar to that of tradin" of e7uities in the cash market se"ment#

Ent&t&!s In Tra)&n' S,st!"


There are four entities in the tradin" systemN

Tra)&n' "!"/!rA
Tradin" members are of $-2# They can trade either on their own account or on behalf of their clients# The e+chan"e assi"ns a tradin" member ID to each tradin" member# 2ach tradin" member can ha!e more than one user# The number of users allowed for each tradin" member is 9C

notified by the e+chan"e from time to time# 2ach user of a tradin" member must be re"istered with the e+chan"e and is assi"ned a uni7ue user ID# The uni7ue tradin" member ID functions as a reference for all ordersKtrades of different users# This ID is common for all users of a particular tradin" member# It is the responsibility of the tradin" member to maintain ade7uate control o!er persons ha!in" access to the firm3s user IDs#

C%!ar&n' "!"/!rA
,learin" members are members of $-,,4# They carry out risk mana"ement acti!ities and confirmationKin7uiry of trades throu"h the tradin" system#

Pr12!ss&1na% (%!ar&n' "!"/!rA


A professional clearin" member is a clearin" member who is not a tradin" member# Typically, banks and custodians become professional clearin" members, clear, and settle for their tradin" members#

Part&(&pantA
A participant is a client of tradin" members like financial institutions# These clients may trade throu"h multiple tradin" members but settle throu"h a sin"le clearin" member#

:A-I- 5. TRADI$G
The $2AT .;5 system supports an order dri!en market, wherein orders match automatically# 5rder matchin" is essentially on the basis of security, its price, time and 7uantity# All 7uantity fields are in units and price in rupees# The lot si6e on the futures market is for ()) $ifties# The

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e+chan"e notifies the re"ular lot si6e and tick si6e for each of the contracts traded on this se"ment from time to time# 'hen any order enters the tradin" system, it is an acti!e order# It tries to find a match on the other side of the book# If it finds a match, a trade is "enerated# If it does not find a match, the order becomes passi!e and "oes and sits in the respecti!e outstandin" order book in the system# 5rder type and conditions The system allows the tradin" members to enter orders with !arious conditions attached to them as per their re7uirements# These areN Day orderN A day order, as the name su""ests is an order which is !alid for the day on which it is entered# If the order is not e+ecuted durin" the day, the system cancels the order automatically at the end of the day# Good till cancelledN DGT,EN A GT, order remains in the system until the user cancels it# ,ose7uently, it spans tradin" days if not traded on the day the order is entered# The ma+imum number of days an order can remain in the system is notified by the e+chan"e from time to time after which the order is automatically cancelled by the system# 2ach day counted is a calendar day inclusi!e of holidays# The days counted are inclusi!e of the day on which the order is cancelled from the system at the end of the day of the e+piry period#

Goods till daysKdateNDGTDEN A GTD order allows the user to specify the number of daysKdate till which the order should stay in the system if not e+ecuted# The ma+imum days allowed by the system are the same as in GT,

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order# At the end of this dayKdate, the order is cancelled from the system# 2ach dayKdate counted are inclusi!e of the dayKdate on which the order is placed and order is cancelled from the system at the end of the dayKdate of the e+piry period# Immediate or ,ancelNDI5,EN An I5, order allows the user to buy or sell a contract as soon as the order is released into the system, failin" which the order is cancelled from the system# Partial match is possible fo the order, and unmatched portion of the order is cancelled immediately#

Market spreadKcombination order entryN The $2AT .;5 tradin" system also enables to enter spreadKcombination trades# This enables the user to input two or three order simultaneously into the market# These orders will ha!e the condition attached to it that unless and until the whole batch of orders find a counter match, they shall not be traded# This facilitates spread and combination tradin" strate"ies with minimum price risk #

:asket tradin"N In order to pro!ide a facility for easy arbitra"e between futures and cash markets, $-2 introduced basket8tradin" facility# This enables the "eneration of portfolio offline order files in the deri!ati!es tradin" system and its e+ecution in the cash se"ment# A tradin" member can buy or sell a portfolio throu"h a sin"le order, once he determines its si6e# The system automatically works works out the 7uantity of each security to be bou"ht or sold in proportion to their wei"hts in the portfolio#

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NEED OF INVESTMENT
In!estment acti!ity includes buyin" and sellin" or tradin" on money andKor promissory notes# The ob ecti!es of in!estors can beN T T Income Appreciation of capital safty 4i7uidity 1ed"e a"ainst inflation

The mi+ of these ob ecti!es may also depend on the time frame of his in!estment# -hort8termKday8to8day tradin" "ains# -hort term capital "ains# 4on" term capital "ains#

-econdary market is the market where in!estors buy or sell securities in e+chan"e throu"h brokersKsub brokers# -ettlement "uarantee is ensured for transaction on stock e+chan"es# If the in!estor does not "et moneyKsecurities for whatsoe!er reason, then there is an institutional arran"ement to settle his claims in the e+chan"e# If the brokers default, the in!estors can seek protection from the In!estor Protection .und of the 2+chan"e# -tock 2+chan"e means anybody or indi!iduals whether incorporated or not, constituted for the purpose of assistin", re"ulatin" or controllin" the business of buyin", sellin" or dealin" in securities# It is an association of member brokers for the purpose of self8re"ulation and protectin" the interests of its members#

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To know what "eo8political factors affected the marketplace up till <*stMay# 1ow did the stock market react# Impact on !arious sectors# 1ow ,ommon Minimum Pro"ramme D,MPE affected the marketplace# 'here the in!estors should in!est now# To know about the !arious sectors3 outlook#

Methodolo"y The inde+ is a market capitali6ation wei"hted inde+ -election ,riteria -election of the inde+ set is based on the followin" criteriaN 1. ,ompanyBs market capitalisation rank in the uni!erse should be less than 9)) 2. ,ompanyBs turno!er rank in the uni!erse should be less than 9)) 3. ,ompanyBs tradin" fre7uency should be at least G)= in the last si+ months# 4. ,ompany should ha!e a positi!e net8worth# A company which comes out with a IP5 will be eli"ible for inclusion in the inde+, if it fulfills the normal eli"iblity criteria for the inde+ for a < month period instead of a A month period#

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WHERE TO LOOK NOWJ O&% D GasH The fundamentals of the Indian 5il ; Gas sector remain stron"# The refinin" mar"ins in the year ())G are e+pected to be 7uite hi"h# There is an e+pected increase in the demand of petrol, diesel and 4$G in India with e+pected increase in the number of !ehicles in India# It was also helped by the ban placed by the Indian "o!ernment on the import of kerosene# This will impro!e the marketin" and o!erall mar"ins of the refineries as auto fuels pro!ide better mar"ins# India3s marketin" se"ment was thrown open for pri!ate participation# Met the public sector undertakin"s DP-&E seem to ha!e another *@8(> months of !irtual monopoly ahead of them as it is 7uite e+pensi!e to set up retail an outlet which also re7uires time# Thou"h the fundamentals of the sector are stron", the chan"e in the "o!ernment at the ,entre puts a 7uestion mark on the policies "o!ernin" this sector# The ma or worry points areN D*E $o price hikes in auto fuels Dpetrol, dieselE and cookin" fuels Dkerosene, 4PGE, which affects the company bottom8lines and D(E In spite of the hi"h crude oil ; product prices, no increase in 4PG8kerosene subsidy from the "o!ernment# The companies likely to be ad!ersely affected are :P,4, 1P,4 and I5,8I:P which ha!e been asked to bear the marketin" costs# The counters worth considerin" are 5$G,, Gail, I5,, IP,4 and MRP4#

S#&pp&n'L -hippin" stocks ha!e been on a rollercoaster ride with shippin" rates risin", both in the dry bulk and tanker se"ment# The hike in the dry8bulk rates were a natural off8shoot of the increased demand from ,hina but the slowdown in the ,hinese demand has had an impact on the frei"ht

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rates# ,hina had been the ma or factor for the sur"e in the frei"ht rates# It had also emer"ed as the world3s second lar"est consumer of oil boostin" tanker rates# The slowdown in the o!erall "lobal economy has also had a ne"ati!e bearin" on the shippin" rates in the past few months# The rates are e+pected to stabili6e at the current le!els "i!en the fact that demand from ,hina will "row but at a slower rate# $o additional tonna"e is e+pected to be added in the short run and it looks like the worst in terms of declinin" tanker frei"ht rates may be o!er# -,I disin!estment has been put in the cold stora"e due to the chan"e in the "o!ernment# The company bein" the lar"est fleet owner in the country had to shel!e its plans to e+pand its fleet to make full use of the boom in the frei"ht market# The company is plannin" to "o ahead with a plan to replace around ()8(9= of its tanker fleet within the ne+t few years# In!estors can continue to hold as well as

consider fresh buyin" in -,I, G2 -hippin" and Mercator 4ines while continue to hold Varun -hippin" and ,oncor#

P#ar"a(!ut&(a%sL M$, and domestic pharma companies acted as perfect defensi!es in the past two weeks of May, "i!en the uncertainty in the markets# M$,3s are e+pected to launch more dru"s in ())G "i!en the fact that India will become a re"ulated market# Indian companies ha!e been acti!ely increasin" their research acti!ities and e+pandin" capacities in the wake of increased opportunities, primarily throu"h e+ports# The total !alue of dru"s e+pected to "o off patent o!er the ne+t fi!e years is o!er U *9 billion# 5pportunities ha!e been spotted in the "lobal "eneric markets, with many dru"s "oin" off patent in the near future# ,ontract manufacturin" acti!ities due to cheaper costs are also e+pected to shore up in the comin" years# 1owe!er, there are fears of DP,5 returnin" with the chan"e in the "o!ernment# -ome "ood counters for buy and hold

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include Ranba+y, Aurobindo, :iocon, ,ipla, DR4, Di!is, Glenmark, IP,A, %rebs, -un Pharma# In21r"at&1n T!(#n1%1',H This is one sector which has the least interference from the "o!ernment# The new "o!ernment does not aim at makin" any ma or policy chan"es in this sector as it is in some of the other sectors# The ta+ e+emptions were to be continued in the forthcomin" bud"et# The :P5 backlash has died down considerably in April indicatin" the need for this economic rationale# .ew "ood counters that may be considered for in!estin" are Infosys, 'ipro, -atyam, 1u"hes, I8.le+, Infotech 2nterprises, Moser :aer, $IIT and Polaris# 9an$sH The bankin" sector had "ood times until with the declaration of di!idend norms by the R:I, many banks, particularly the P-& pack, witnessed a sharp fall in their stock prices# Accordin" to these "uidelines, banks with net $PAs "reater than <= of the net assets or ,apital Ade7uacy ratio lower than **= will not be able to declare di!idends without the prior permission of the R:I# Moreo!er, the R:I has also capped the di!idend payout ratio at <<= for the banks who are eli"ible for doin" so# These "uidelines will be helpful for all the banks in the medium to lon" term as it will enable them to stren"then their balance sheets and prepare themsel!es for the forthcomin" :asel II re"ime# ,onse7uently, not many P-& banks ha!e enou"h room for raisin" funds from capital markets# 4imitin" the .II holdin"s and the *)= cap on !otin" ri"hts will put further consolidation in the sector under the carpet# If the "o!ernment doesn3t allow their holdin"s to fall below the 9*= mark, additional funds will ha!e to be pumped in by the "o!ernment itself# In the ne+t (8< years, as banks "row their balance sheets and :asel II norms need to be complied with, this will definitely become an issue# 4ikelihood of risin" interest rates will also ha!e a ne"ati!e impact on

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the treasury holdin"s of banks# Aut1"1/&%!sH The outlook for the sector still remains "ood in the medium term# The easy loan schemes, impro!ed roads, increased income and the effort to brin" in small cars at cheaper rates should "i!e a boost to the industry# Tractor se"ment is likely to "et further impetus with a"riculture8 friendly policies of the new "o!ernment which is e+pected to enhance the rural disposable income# Any incenti!e on the e+cise duty front will impro!e the reali6ations of the auto manufacturers and is likely to be reflected in the "rowth of the auto companies# The only concern here is the likelihood of increase in the interest rate in future that makes auto financin" an e+pensi!e affair# Also the rise in oil prices mi"ht discoura"e the "rowth of two and four wheeler se"ment# Good In!estment counters are M;M, Maruti, Tata Motors, 1ero 1onda, :a a Auto, -undaram .asteners, 5ma+ Auto, :harat .or"e, Amtek and Ashok 4eyland#

P1?!rH The Power sector has been hurt badly by the announcements in the ,ommon Minimum Pro"ram D,MPE# An earlier re"ulation proposed a split in the transmission and distribution business of the -2:3s and power distribution "rids were to be sold to pri!ate players# This was supposed to be completed by June *) and has now been postponed# This meant that players like Reliance 2ner"y and Tata Power, which would ha!e had access to newer markets in the country, would now "et ad!ersely affected# These players had already planned to bid for power "rids when they were to be sold and also proposed power plants in &#P# The share prices of most players had already factored the future earnin"s from newer markets# The postponement has drawn a lot of uncertainty, which has "ot reflected in the drubbin" that

AA

these scrips ha!e faced# Tata Power, R24, $ey!eli 4i"nite, %2, and PT, may be considered stron" in this sector# C!"!ntH ,ement sector has seen an increase in dispatches and reali6ations in the past few months# The Import duties ha!e been drastically slashed on cokin" coal and there has been an impro!ement in operatin" efficiencies which should impro!e the bottom lines of cement companies# The "ood monsoon last year coupled with some ma or infrastructural and housin" acti!ity is e+pected to increase the off take of cement in this fiscal# As per the official data released by the ,ommerce and Industry Ministry on May (9, ())G, cement production "rew by *A#* per cent to *#** croretonnes in April ())G, the hi"hest amon" infrastructural industries# As per .I,,I estimates, the industry is estimated to "row at @ to G= o!er the ne+t couple of 7uarters# The outlook for the industry for this calendar year is positi!e# A,,, GA,4, India ,ement and -hree ,ement are worth considerin" for in!estment# India is !iewed as still the solid lon"8term story it was a year a"o# It3s ust as well that too much of a "ood thin" too soon is bad for e!en the e7uity markets# This period of adaptation is perhaps runnin" itself out now# The stabili6ation process is underway# The ne+t few months would see the markets pickin" up the pieces from a more beni"n political en!ironment as the Go!ernment hunkers down to business and corporate earnin"s, the pro"ress of the Monsoon and !aluations come back to the fore# Throu"h the rest of the year the market is e+pected to "in"erly trade hi"her all the way upto a ma+imum of *<9AA#@< for the -ense+ D><C@ for the $iftyE# Medium8term strate"y India will be less of a stock8pickers market in the ne+t si+ months than it was o!er the past one year# Institutional acti!ity could "et further polari6ed dri!en by li7uidity considerations and the

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need to seek co!er from potential e+ternal shocks# Also, sectoral in!estin" could "ain currency as compared to the fa!oured bottom8up, cherry pickin" approach we ha!e been accustomed to in the past# This could lead to a de"ree of under8performance for se!eral mid8cap and small8cap stocks across the market#

P%u"/ 21r )!2!ns& !sK '%1/a% 1uts1ur(&n' t#!"!s.


-ectors such as IT and pharmaceuticals, the fla"8bearers of the Indian outsourcin" story, ha!e in fact under8performed for a lar"e part of the last twel!e months and its only in the recent crash that they ha!e outperformed# These sectors are already benefitin" from their percei!ed preclusion from bein" politically sensiti!e# 5ther emer"in" India outsourcin" themes such as auto8components, pharmaceuticals and te+tiles too should find takers throu"h the year# The currency risk associated with the manufacturin" sector may be difficult to determine since not all companies hed"e their recei!ables fully# 1owe!er the e+ternal opportunity bein" so lar"e,it is e+pected that the currency to impact mar"inally o!erall#

SECTORS OUTLOOK -oftware ser!ices continue to be well supported for now with "rowin" !olume "rowth and stable price en!ironment# The "lobal opportunities for Indian software companies continue to e+pand and their earnin"s models ha!e now been cast to deli!er stable and "rowin" returns# The bi" risk and ne"ati!e lon"8term surprise to this sector emanates from a potential turbulence in the &#-# economy and stock markets, chiefly the bankin" and financial sectors# 1owe!er a period of stability may pre!ail in the medium term althou"h lon"er term #,ontinuin" weakness for the "reenback can be foreseen# In any case, Indian software companies ha!e come to terms with this risk and are hed"ed ade7uately#

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Indian pharmaceutical companies continue to file e!er8increasin" number of DM.s and A$DAs in their bid to pri6e open the &#-# "eneric market# The sector as a whole is poised critically to deli!er a sharp increase in earnin"s from .M)@8)G onwards, from where the men will be pro!erbially separated from the boys# In the medium term thou"h much of the "ood news is in the price and therefore the sector has ceased to rally any further, indicatin" that there may be e!entKe+ecution risk yet# The natural propensity of this sector to pro!idesuccour durin" hard times is what3s dri!in" and may well continue to dri!e near term outperformance# ,ore sectors like cement and capital "oods o!er commodities, banks and cyclicals are preferred since the former ha!e a more durable underlyin" story to tell while the latter would be more swayed by factors like ,hinese demand, sub ect to "reater !olatility and uncertainties# These sectors would therefore be more fa!oured to play for a swift short8term rebound but no more, since the concerns that ha!e led to their crash ha!e perhaps been o!erdone in the short 8 term# It must be noted, that the recent price debacles may ha!e been e+a""erated and rendered some stocks e!en within our non8preferred sectors attracti!e from a medium8term basis, such as TI-,5, 1indalco, -:I and 5:, to name a few# As such we would ad!ocate an indi!idualistic approach to stocks within the sectoral strate"y# ,ement looks particularly "ood "i!en the impro!in" demand8supply dynamics in the ne+t few years# Valuations in the sector !ary sharply based on different parameters like 2VKtonne and 2VK2:IDTA# Automobiles should continue to "row further throu"h ())G8*) as the key "rowth dri!ers remain intact and are unlikely to chan"e much, e+cept interest rates, which could harden later in the year# Automobiles also offers a direct play on "rowin" consumer spendin" in urban India as well as bein" a ma or beneficiaries from an e+pected "ood Monsoon this year#

AG

,apital Goods sector offers a stable lon" term play on infrastructure "rowth in India# The best part is that it3s a stock pickerBs paradise here with se!eral e+cellent lar"e and mid8si6ed companies to chose from# Re"ardless of the current policy framework, capital "oods companies ha!e been deli!erin" stron" double8di"it "rowth in sales and profits# 5rder bookin"s are robust and cost structures de8risked lar"ely from inflationary pressures# As such we see "reat lon"8term !alue here# ,yclicals, chiefly commodities like metals, allied support industries and chemicals ha!e benefited from the stron" ,hinese consumption story for the past twel!e months# A softenin" of prices in the past 7uarter ())@8)G has already seen a sharp trend re!ersal in these stocks# ,ontinued weakness throu"h much of ())@8)G thereby keepin" a lid on sentiment and stock prices in this period is e+pected##

P1%&t&(s t#r1?s t#! 'aunt%!t


If the elections threw up a surprise then what transpired in the aftermath of the result has stupefied financial markets# The -ense+ crashed **= on May *Cth, the hi"hest in a sin"le day in its history and the stock market came to a "rindin" halt as it hit the *)= systemic circuit8breaker limit# The reckless utterances of the 4eft party leaders that raised the scepter of the country bein" dra""ed back into the dark days of socialism, re"ional and "lobal concerns relatin" to the price of oil, the "reenback and the direction of interest rates in the &#-# ha!e wei"hed hea!ily on in!estors# Manic Monday will per!ersely be called the Vred letter day3 in history books for more reasons that one# Post8mortem aside, politics, after a lon" time has thrown the "auntlet at in!estors# The markets will take it up of course, but not before it fires a !olley of 7uestions back, which this new Go!ernment must answer une7ui!ocally and soon when it presents its &nion :ud"et in July#

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H&'# &nst&tut&1na% 1?n!rs#&p L (r!at!s st1($ 1 !r#an'


Reports as well as anecdotal e!idence includin" the hu"e sur"e in .II inflows in the last one year su""est that the .II ownership of Indian stocks has risen sharply in this period# This, from a technical perspecti!e portends ne"ati!ely, "i!en the weakenin" "lobal position for emer"in" market e7uities# Also note that India has been amon" the chief recipients of capital flows in the re"ion in ())@ and ())G# The .II capital flow fi"ures in ())G show that barrin" May ())G DMTD net .II sales are UC<@mnE there has been a net inflow of U<#>*bn on a MTD basis# This fi"ure is second only to -outh %orea, which recei!ed o!er U*)bn# 5n a yearly basis India was third hi"hest recipient after -outh %orea and Taiwan# 'hen !iew a"ainst this backdrop, the 7uantum of funds that ha!e flowed out is not much# The ownership pattern of the :-28()) companies shows that .IIs own *@= of the stocks there as of March ())G as compared to *(= a year a"o# .or the -ense+ that number is e+pected to be between *@8()= today as compared to *98*A= a year a"o# 5f the U>bn odd in!ested by .IIs since January ())G, U*#9bn came into the IP5s of 5$G, and GAI4 alone# These two stocks comprise *C= of the $-2 $ifty and hence suffer from a hu"e .II stock o!erhan"# All these fi"ures su""est two thin"s H that India3s o!erwei"ht position in the benchmark indices DA= in M-,I 2mer"in" MarketsE has perhaps led to it recei!in" more inflows than it should ha!e so far and secondly, the .II ownership is at historically hi"h le!els today# -uch hi"h ownership and wei"hts e+poses it to relati!e risk of cutKdown"rade in its ratin"s in the benchmark indices like the M-,I indices# These factors therefore create a ne"ati!e o!erhan" of stock as far as India is concerned#

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G%1/a% (1n(!rns L n1t t1 /! tr&2%!) ?&t#


A number of lon"er8term issues need to be borne in mind that could create tumultuous shifts in capital markets "lobally# The &#-# stock market must come to terms with a plethora of issues this year# $eedless to say that despite all the Vhappy3 numbers and pro ections, structural contradictions su""ests that a hard landin" will come to pass# The .ed ti"htenin", the price of the Dollar and the U@) oil makes it a turbulent market to bet on# The ,hinese economy motor too is downshiftin" its "ears# Prices of commodities and frei"ht rates ha!e been the first casualties already followed by its stock market# ,ooler ,hina and a flattenin" &#-# yield cur!e bodes ill for capital flows towards emer"in" markets and Asian economies in "eneral# .urther debacles in either will impact "lobal capital flows si"nificantly and India cannot hide from this# The latter half of fiscal ())@8)G will ha!e se!eral "lobal uncertainties do""in" markets raisin" the risk premia all round, impactin" earnin"s multiples and effecti!ely puttin" a lid on the markets#

In a nuts#!%%
R\Politics will mould reform and policy8makin" initially but economics will make its presence felt later in the year# The concerns about the 4eft parties3 presence are o!erdone and hold lesser de!ils than some of the other coalition partners# 1owe!er it is the &nion :ud"et to be presented in July which will speak the Go!ernment3s mind and what the markets will heed more than any amount of political double8speak R\It is not enou"h to take solace in the clich] of continuity of reforms as it is to hope for a hastened pace# 27uity markets will watch for that closely# R\Global economic factors, technical concerns such as .II inflows# In the face of such resistance,

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in!estors ha!e their work cut out for the rest of ())G

RESEARCH O9@ECTIVE

To understand the concept of Depository ser!ices# To know the procedure of !arious acti!ities8openin" of AKc, demateriali6ation, remateriali6ation, pled"e, auction etc#

To know about online tradin"# To study the deri!ati!e market# To know the !arious strate"ies with respect of futures and options# 1ow did the stock market react# Impact on !arious sectors# 1ow ,ommon Minimum Pro"ramme D,MPE affected the marketplace# 'here the in!estors should in!est now# To know about the !arious sectors3 outlook#

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RESEARCH METHODOLOG>
Research methodolo"y is the way to systematically sol!e the research problem# In it we study the !arious ysteps that are "enerally adopted by researcher in studyin" in his research problem alon" with the lo"ic behind them# It is necessary for the researcher to know research method, techni7ue ; the methodolo"y, researcher also need to understand the assumption underlyin" !arious techni7ue ; they can decide that certain techni7ues ; procedures will be applicable to certain problem ; other will not be# To conduct a research in any field# It is necessary that is study method ; a way to approach certain thin"s should be correct ; is systematic way# Thus to start a sur!ey of pro ect, its methodolo"y should be to the point# It is correct /methodolo"y is the key to any sur!ey0 The success of any desertion work lar"ely depends upon correct selection ; the application of the nature of the proposed study, nature of information to be co!ered in desertion#

/A "ood methodolo"y is the life blood of work0 DP2T2R 2I,1E .or the descripti!e research undertaken to study the satisfaction le!el ; related issues amon" the e+ecuti!e trainees of credit processin" a"ency Dunder icici bankE, mainly two kind of data were collected !i6, primary ; secondary# C>

DATA COLLECTION
Pr&"ar, )ata (1%%!(t&1nAH

primary data are those which are collected a fresh ; for the first time# Personal unstructured inter!iew of the employee of the bank# Distribution of the 7uestionnaires amon" the bank employee to "ather information#

S!(1n)ar, )ata (1%%!(t&1nAH


-econdary data which has already been collected ; analy6ed by some one else Documents "i!en by bank# Internet information ; websites# :ook ; ma"a6ines# Information "i!en by customers Re"istration kit and information broacher

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SAMPLING PLAN
Population or uni!erse -amplin" unit -amplin" si6e -amplin" method -amplin" area All the indi!idual li!in" in Mumbai# A customer who in!est in share market# G) people from the selected population# The Jud"ment samplin" method# banksand !arious markets of Mumbai#

DATA A$A4M-I-^:A-2D 5$ I$V2-T5R- 5. -1AR2 MAR%2T I$ VARI5&- R2GI5$ 5. M&M:AI_ Representin" in the form of table ; chart There are some areas of M&M:AI re"ion from where I "ot the in!estors response which are already in!ests their money in share market throu"h Reli"are# .rom where I found some persons either most satisfied or least satisfied# Analysis is "i!en below N8

CA

SANTACRUFA In t#&s ar!a ** M &n !st1rs ar! )&ssat&s2&!)K *5 M sat&s2&!)K .: M '11)K 44 M !+(!%%!nt .

SANTACRUF ** M *5 M .: M 44 M DISSATISFIED SATISFIED GOOD E=CELLENT

CC

11% 17% 44% EXCELLENT GOOD SATISFIED DISSATISFIED 28%

GHATKOPARA In t#&s ar!a *5 M &n !st1rs ar! )&ssat&s2&!)K .. M sat&s2&!)K .. M '11)K 3; M !+(!%%!nt .

GHATKOPAR *5 M .. M .. M 3; M DISSATISFIED SATISFIED GOOD E=CELLENT

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17% 39% 22% 22% EXCELLENT GOOD SATISFIED DISSATISFIED

THANEA In t#&s ar!a 8 M &n !st1rs ar! )&ssat&s2&!)K .. M sat&s2&!)K 33 M '11)K 3; M !+(!%%!nt .

CG

THANE 8M .. M 33 M 3; M DISSATISFIED SATISFIED GOOD E=CELLENT

6% 22% 39% EXCELLENT GOOD SATISFIED DISSATISFIED 33%

@)

DIVAA In t#&s ar!a *5 M &n !st1rs ar! )&ssat&s2&!)K .. M sat&s2&!)K .: M '11)K 43 M !+(!%%!nt .

DIVA *5 M .. M .: M 43M DISSATISFIED SATISFIED GOOD E=CELLENT

@*

28%

33%

EXCELLENT GOOD SATISFIED DISSATISFIED

22%

17%

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FINDINGS
Durin" the /,ustomer Awareness About -hare Tradin"0 in relation to Reli"are main points are foundedN TDematrili6ation is basic tool of share tradin"# 27uity fund is not complicated# It is clear and specific fund# :y the increase demand of e7uity, company can "et more profit# The current knowled"e is !ery compulsory and all the e!ent occurrin" in the world are also mention for better profit# Market is uncertain and fluctuates by a tiny e!ent#

CONCLUSION
'hat -2:I and its political bosses need to reali6e is that stock market is by nature a ner!ous animal# There is somethin" else the "o!ernment can do to make the markets less !olatileN "et all parties, not ust allies, to a"ree to a minimum pro"ram of reform# :ut that3s somethin" as impossible as a stock market# The or"ani6ation should payin" more attention towards the proper publicity of the product and facilities which differ the company with his competitors# ,ompany should open a client problem sol!in" department where clients can fill their problems so transparency can take place durin" the tradin" and any other transaction and try to fulfill better facilities to the clients# @<

LIMITATIONS
La($ 12 a?ar!n!ss 12 st1($ "ar$!t
-ince the area is not known before it takes lot of time in con!incin" people to start in!estin" in shares primarily in ipo3s

N1 pr1p!r assuran(! 12 r&'#t &n21r"at&1n


The main data sources are websites, telephonic information and offices !isit#

The data on websites mi"ht be possible, not "et updated#

The marketin" person mi"ht be possible , is not throu"h with all concepts to whom I contacted#

-ometimes, they try to hide information

S!r &(!s 12 (1"p!t&t1rs


'e cannot "i!e proper comment on competitor3s ser!ices till we use it# :ut I try to collect as accurate information as possible as we all know ser!ices are intan"ible and we cannot predict its 7uality, it is a thin" a feel not to see#

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M1st p!1p%! ar! (1"21rta/%! ?&t# tra)&t&1na% /r1$!rs


As people are doin" tradin" from there respecti!e brokers, they are 7uite comfortable to trade !ia phone#

La($ 12 t!(#n1 sa , p!1p%! an) p11r &nt!rn!t p!n!trat&1n


-ince most of the people are 7uite e+perienced and also they are not techno sa!!y# Also Internet penetration is poor in India#

S1"! r!sp1n)!nts ar! un?&%%&n' t1 ta%$


-ome respondents are unwillin" does not respond, as they are 7uite annoyed with the phone call and some don3t ha!e time#

Ina((urat! %!a)s
-ometimes leads are pro!ided which had error in it which !aries from only 9 di"it phone numbers to wron" phone number#

M&s%!a)&n' (1n(!pts
-ome people think that shares are too risky and ust another name of "amble but they don3t know it3s not at all that risky for lon" in!estors#

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<UESTIONNAIRE
A:5&T A'AR2$2-- 5. ,4I2$T .5R -1AR2 MAR%2T

Please tick D E indi!idually for each of the followin" parts#

X#*N Are you interested in share tradin" Q DaE Mes ^_ DbE $)

^_

X#(N In which broker company you prefer for share tradin" Q DaE Reli"are ^_ DbE ,ar!ey ^_ DcE -harekhan ^_ DdE Any other ^_ X#<N Are you satisfied with the return from it Q DaE Mes ^_ DbE $o ^_ X#>N 'hat is e+pected rate of return Q DaE 9= DbE *)= DcE *9= DdE More than *9= X#9N 'hat is actual rate of return Q DaE Accordin" to e+pectation DbE :elow the e+pectation DcE More than e+pectation ^_ ^_ ^_ ^_

^_ ^_ ^_

X#AN 'hich is more profitable business to in!est Q *# A"riculture ^_ (# Te+title ^_ <# :ank ^_ ># Any other ^_ X#CN 'hich is more safer in!estment Q DaE -hare ^_

@A

DbE DcE DdE

Debt :ank Any other

^_ ^_ ^_

X#@N .rom where you "et the knowled"e about your in!estmentQ DaE :y broker ,o# ^_ DbE $ewspaper ^_ DcE Tele!ision ^_ DdE Any other ^_ X#GN In which bank you ha!e your sa!in" account Q DaE $ationali6ed ^_ DbE Pri!ate sector ^_ X#*)N 'hy would you like to in!est your money Q DaE .or interest ^_ DbE .or future ^_ DcE Any contin"encies ^_ DdE Any other ob ect ^_ X#**N 1a!e you tradin" account in Reli"are Q DaE Mes ^_ DbE $o ^_ X#*(N Are you satisfied with the ser!ice pro!ided by the Reli"areQ DaE Mes ^_ DbE $o ^_ X#*<N If $o, Please specify the reason Q 888888888888888888888888888888888888888 X#*>N Are you interested to in!est further with Reli"are Q DaE Mes ^_ DbE $o ^_ X#*9N 'hy would you like to in!est with Reli"are Q DaE It is safer ^_ DbE It3s ser!ice is faster than any other ^_ DcE It pro!ide sufficient return ^_ DdE Any other ^_

@C

9I9LIOGRAPH>
:ooks ; JournalN Philip %otler; %e!in %eller, Marketin" Mana"ement ? *(th 2dition , Prentice81all India, ())A Ramaswamy, V#-#, ;$amakumari, -#, Marketin" Mana"ementN Plannin", Implementation ; ,ontrol, Macmillan India, DaryaGan , Marketin" Research, Dacid # luck Ronald -#Rubin Prentice 1all of India P!t# 4td 'ebsitesN8

httpNKKwww#s8m8a8r8t#comKinde+#htm httpNKKwww#"oo"le#co#inKsearchQhl`en;7 httpNKKwww#reli"areseurities#com httpNKKwww#nseindia#com

@@