A PROJECT REPORT ON

A Study on Working of Commodities Market And Investors Preferences towards it AT ANAND AT!I S"C# ITI"S $IMIT"D Pro%ect e&ort Su'mitted in Partia( fu(fi((ment for t)e award of MAST" *+ ,#SIN"SS ADMINIST ATI*N S#,MITT"D ,A.SAMPAT! !T.No/012345670408 #nder t)e guidance of Mr. A9I SA AN

St. A#:#STIN" P.: C*$$":"

;Affi(iated to *smania #niversity< :!ANAP# ;9<= :)atkesar ;M<= . Dist= !ydera'ad (2009-2011)

CERTIFICATION This is to certify that the project report titled WORKING OF

THE COMMODITIES MARKET AND INVESTORS PREFERENCE TOWARDS IT submitted in partial fulfillment for the award of the award of MBA programme of Osmania University. Hyderabad was carried out by Mr.RA ! "ARA# Head of the department under guidance. $his has not submitted to any other. University or institution for the award of any degree% diploma or certificate.

Name of the guide

Signature of the guide

EC!ARATION

! hereby declare that the enclosed pro&ect entitle WORKING OF THE COMMODITIES MARKET AND INVESTORS PREFERENCE TOWARDS IT done !t in A#A#'RA$H! "()UR!$!(" *!M!$(' is submitted to +O"MA#!A U#! (R"!$,% H,'(RABA' partial fulfillment of +MA"$(R O- BU"!#("" A'M!#!"$RA$!O#% the pro&ect is an original wor. done by me and to the best of my .nowledge this wor. is not submitted to s any other university or college for award of any other degree% diploma or fellowship.

"!ACE# ATE#

A$SA%"AT& &T$NO# 2'()*+,-2*2.

A0STRACT
The 1asic o1jecti2e of the study is the ho3 much in2estors are preferred to in2est in the commodities mar4et and to understand 3hat are the reasons 1ehind in2esting in the commodities mar4et$ 5hile maintaining the highest standards of e6cellence7 ethics and professionalism$ The entire firm acti2ities are di2ided across distinct client groups# Indi2iduals7 "ri2ate Clients7 Corporates and Institutions$ Commodity futures mar4et has 1een in e6istence in India for centuries$ The 8o2ernment of India 1anned futures trading in certain commodities in -*s$&o3e2er trading in commodity futures has 1anned permitted again 1y the go2ernment in order to help the commodity products 7traders7 and in2estors$ These ra3 commodities are traded on regulated e6changes7 in 3hich they are 1ought and sold in standardi9ed Contracts$ Commodity Future is a eri2ati2e instrument 3here the underlying asset is a commodity$ Commodity future are e6changes traded contracts to sell or 1uy standardi9ed futures contract$

ACKNOWLEDGEMENT
Behind every successful achievement lies great contribution by those without whom that could have been achieved to them% although more words of gratitude is insufficient for their unlimited contribution% ! ta.e this opportunity to revel my hear felt gratitude imprinted deep within me. ! am very much than.ful to the finance manager and the staff of ANAND AT!I S"C# ITI"S $IMIT"D for giving encouragement and their .ind cooperation. ! am e/tremely grateful to Mr. KRISHNAREDDY m ! "#r of ANAND AT!I S"C# ITI"S $IMIT"D0 .indly guiding me without whose .ind help it would not have been possible for me to complete this pro&ect wor.. ! would li.e than. 'r. 1. "UR,A 2RA3A"H RAO principal% for e/tending all the institutional help and co4operation during this period. ! wish to e/press my sincere than.s to Mr. Ravi Saran (H.O.D) 5 1uide and also the management and staff of my college for providing the guidance and support.

-inally% ! e/press my sincere than.s to all my friends who have supported me for the success of this pro&ect.

(A.SAMPATH)

TA$LE OF CONTENTS
CHAPTERS TITLE INTROD&CTION
O1jecti2es of study

PAGE. NO

CHAPTER % 1

Scope of the study Research methodology !imitations of the study LITERACT&RE REVIEW Commodities Information Commodity eri2ati2es Ad2antages and isad2antages of Commodity Trading COMPANY PROFILE INTERPRETION OF DATA FINDINGS
(CONC!:SIONS

'-11

CHAPTER % 2

12-()

CHAPTER % ( CHAPTER % +

('-*( *+-)' ),-'1 '2-'+

CHAPTER % *

; S:88ESTIONS< $I$LIOGRAPHY

!IST OF TA0!ES
,

1 2 ( + * ) '

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=a< Return =1< Transperancy =c< !i>uidity =d< Safety

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INTROD&CTION

INTROD&CTION
A study has 1een conducted on the ;WORKING OF THE COMMODITY MARKET AND ITS PREFERENCE TOWARDS IT< 1! 05# ANAND RATHI SEC&RITIES LTD7 &ydera1ad 0ranch$

As 3e ha2e stated earlier in the E6ecuti2e summary the AnandRathi =AR< set up in '++)7 is one of India?s fastest gro3ing full@ser2ice securities firm 3ith a presence in more than /** locations across India and has offices in u1ai ; 0ang4o4$ AR pro2ides 3ealth management ser2ices7 in2estment 1an4ing7 1ro4erage ; distri1ution ser2ices in the areas of e>uities7 commodities7 mutual funds and insurance$ The group caters to the financial needs of di2ersified group of clients7 3hich include the 3ell@ reputed Corporate 8roups7 Institutions7 Foreign In2estors7 Indi2iduals as 3ell as 3ealthy families and 3as recently ran4ed 1y an Asia %oney 2**, poll amongst South Asia?s top ( 3ealth managers for the ultra@rich$ The firmAs philosophy is entirely client centric7 3ith a clear focus on pro2iding long term 2alue addition to clients7 3hile maintaining the highest standards of e6cellence7 ethics and professionalism$ The entire firm acti2ities are di2ided across distinct client groups# Indi2iduals7 "ri2ate Clients7 Corporates and Institutions$ AnandRathi =AR< is a leading full ser2ice securities firm pro2iding the entire gamut of financial ser2ices$ The firm7 founded in '++) 1y %r$ AnandRathi7 today has a pan India presence as 3ell as an international presence through offices in u1ai and 0ang4o4$ AR

pro2ides a 1readth of financial and ad2isory ser2ices including 3ealth management7 in2estment 1an4ing7 corporate ad2isory7 1ro4erage ; distri1ution of e>uities7 commodities7 mutual funds and insurance @ all of 3hich are supported 1y po3erful research teams$

STATE%ENT OF "RO0!E% This project deals 3ith the study a1out B5or4ing of the Commodities mar4et and In2estors preferences to3ards itC in stoc4 1ro4ing concern$

O$=ECTIVES OF THE ST&DY

The 1asic o1jecti2e of the study is the ho3 much in2estors are preferred to in2est in the commodities mar4et and to understand 3hat are the reasons 1ehind in2esting in the commodities mar4et$

The scope of the study is limited to preparing >uestionnaire7 analysis sur2ey and sur2ey is limited to &ydera1ad city and e2en e6isting clients7 3ho are in2esting in the commodities mar4et to understand the preferences to3ards commodities mar4et$

This project report includes profile of the AnandRathi Securities !td7 it contains 1rief introduction7 nature of the 1usiness7 and product profile$ This report includes the findings and conclusions of the study done in order to gi2e the 1etter suggestions$ This study has done 1y conducting and analy9ing the sur2ey of the target clients in the &ydera1ad city$ For the analysis of data the S"SS pac4age is used and using the simple 1ar graphs sho3s the data$ Finally the study is helped to me in many 3ays to ac>uire the 4no3ledge a1out the trading in the stoc4 e6changes and also customer 1eha2ior in doing the sur2ey$

mar4et

To understand the 3or4ings of the commodities mar4et$ To 4no3 the ho3 much people preferred to in2est in the commodities

'*

To 4no3 reasons 1eyond the in2estors in2esting in the commodities mar4et$

SCO"E OF T&E ST: D

It is the study entitled 5or4ing of the Commodities mar4et and In2estors preferences to3ards it in the AnandRathi Securities !td7 &ydera1ad 0ranch The firm is entirely client centric7 3ith a clear focus on pro2iding long term 2alue addition to clients7 3hile maintaining the highest standards of e6cellence7 ethics and professionalism$ The entire firm acti2ities are di2ided across distinct client groups# Indi2iduals7 "ri2ate Clients7 Corporates and Institutions$ The scopes of the study are# Analysis of acti2ities of the commodities mar4et Analysis of sur2ey and this sur2ey is limited to only &ydera1ad city$ Analysis >uestionnaire and suggestions for impro2ement$

METHODOLOGY OF DATA COLLECTION

The methodology of data collection pertains to information to ho3 the data is collected i$e$ either from primary sources or secondary sources$ It e6plains the methods utili9ed and the instruments used in data collection$

SO&RCES OF DATA
''

The sources of data can 1e classified in t3o categories# "rimary sources Secondary sources

PRIMARY SOURCES
The primary data are collected 1y the detailed discussion 3as conducted 3ith the 0ranch %anager of AR !td and Intractions 3as carried 3ith the Commodities in2estors =customers<$ And the discussion 3as carried out 3ith the college internal guide7 3ho helped in de2eloping the o1jecti2es and 2alidating their conformance to the ethical frame3or4 of the project$

SECONDARY SOURCES
I used secondary sources also for collecting the data$ They are# Information from the te6t sources Information form the internet sources Information from the materials pro2ided 1y the concern

LIMITATIONS OF THE ST&DY

The all commodities in2estors 3ere not easily a2aila1le for the conducting the sur2ey$ Some of them they 3ere not ready to fill the >uestionnaire$ The scope of the sur2ey is limited to &ydera1ad city only$

'2

LITERACT&RE REVIEW

'/

C2mm2310> I!72rm 012!

I!0r23.-012!?
Commodity Futures are contracts to 1uy specific >uantity of a particular commodity at a future date$ It is similar to the inde6 futures and stoc4 futures 1ut the underlying happens to 1e commodities instead of stoc4s and indices$ Commodity futures mar4et has 1een in e6istence in India for centuries$ The 8o2ernment of India 1anned futures trading in certain commodities in -*s$&o3e2er trading in commodity futures has 1anned permitted again 1y the go2ernment in order to help the commodity products 7traders7 and in2estors$ 5orld@3ide 7 commodity e6changes originated 1efore the other financial e6Echanges$ Infact most of the deri2ati2es instruments had their 1irth in commodity e6changes$ Commodity mar4ets are mar4ets 3here ra3 or primary products are e6changed$ These ra3 commodities are traded on regulated e6changes7 in 3hich they are 1ought and sold in standardi9ed Contracts$ Commodity Future is a eri2ati2e instrument

3here the underlying asset is a commodity$ Commodity future are e6changes traded contracts to sell or 1uy standardi9ed futures contract$

P r01-1/ !04 27 C2mm23101#4 M r6#0?

The participants 3ho trade in the commodity deri2ati2es mar4ets can 1e classified as follo3sF

( ) H#3"#r4?
&edgers are participants 3ho use commodity deri2ati2e instruments to hedge G eliminate the price ris4 associated 3ith the underlying commodity asset held them$ &edgers are those 3ho protect themsel2es from the ris4 associated 3ith the price of an asset 1y using

')

deri2ati2es$ A person 4eeps a close 3atch upon the prices disco2ered in trading and 3hen the comforta1le price is reflected according to his 3ants7 he sells futures contracts$ In this 3ay he gets an assured fi6ed price of his produce$ In general7 hedgers use futures for protection against ad2erse future price mo2ements in the underlying cash commodity$ &edgers are often 1usinesses7 or indi2iduals7 3ho at one point or another deal in the underlying cash commodity$ Ta4e an e6ample# A &edger pay more to the farmer or dealer of a produce if its prices go up$ For protection against higher prices of the produce7 he hedge the ris4 e6posure 1y 1uying enough future contracts of the produce to co2er the amount of produce he e6pects to 1uy$ Since cash and futures prices do tend to mo2e in tandem7 the futures position 3ill profit if the price of the produce rise enough to offset cash loss on the produce$

=1< S/#-.9 02r4 ? Speculators are participants 3ho 1et on future mo2ements in the price of an asset i$e$ I commodity to ma4e short term gain from the price mo2ements$ Commodity future s gi2e theme the le2erage so to ta4e ris4s on nominal margin payments and there1y increasing for 1igger gains or losses$ Speculators are some 3hat li4e a middle man$ They are ne2er interested in actual o3ing the commodity$ They 3ill just 1uy from one end and sell it to the other in anticipation of future price mo2ements$ They actually 1et on the future mo2ement in the price of an asset$ They are the second major group of futures players$ These participants include independent floor traders and in2estors$ They handle trades for their personal clients or 1ro4erage firms$ 0uying a futures contract in anticipation of price increases is 4no3n as Hgoing long?$ Selling a futures contract in anticipation of a price decrease is 4no3n as Hgoing short?$ Speculati2e '(

participation in futures trading has increased 3ith the a2aila1ility of alternati2e methods of participation$ S/#-.9 02r4 5 8# -#r0 1! 38 !0 "#4 28#r 205#r 1!8#40m#!04 05#> r# 4 72992@4? If the trader?s judgment is good7 he can ma4e more money in the futures mar4et faster

1ecause prices tend7 on a2erage7 to change more >uic4ly than real estate or stoc4 prices$ Futures are highly le2eraged in2estments$ The trader puts up a small fraction of the 2alue

of the underlying contract as margin7 yet he can ride on the full 2alue of the contract as it mo2es up and do3n$ The money he puts up is not a do3n payment on the underlying contract7 1ut a performance 1ond$ The actual 2alue of the contract is only e6changed on those rare occasions 3hen deli2ery ta4es place$

(-) ArA10r "#.r4?

Ar1itrageurs 3or4 at ma4ing profits 1y ta4ing ad2antaged of e6istence of difference in prices of the same product across different mar4ets =%CI and NC EI<$

(3) I!8#402r4?
In2estors are participants ha2ing a longer term 2ie3 as compared to speculators 3hen they enter into trade in the commodities mar4et$ For eg$ Farmers7 "roducers7 and consumers etc$

',

C2mm2310> D#r18 018#4?

A commodity deri2ati2e deri2es its 2alue from an underlying asset 3hich is necessarily a commodity$ To understand the commodity deri2ati2es mar4ets it?s necessary to clear a1out Hcommodities?$ Commodities7 in simple 3ords are any goods that are common and un1randed$ 8old7 sil2er7 ru11er7 pepper7 jute7 3heat7 sugar7 cotton etc$7 are some of the common commodities$ For e$g$ apple juice can 1e a commodity 3hereas the HReal? apple juice cannot 1e called a commodity$ Dou may 1e surprised to 4no3 that in the :S commodities mar4ets there are futures a2aila1le e2en on cattle$ Another feature of commodities is that they are commonly a2aila1le$ Commodity mar4ets represent the formal system for the interplay of demand for and supply of commodities$ These mar4ets can 1e 1roadly classified into spot mar4et and futures mar4et$ Commodities for immediate deli2ery are traded through the spot mar4et$ The players in the spot mar4et are the actual producers and the consumers of the commodities$ The other type of mar4et called the HFutures mar4et? is for facilitating contracts for future deli2ery$ ="lease go through the material on HFutures and Options? to understand a1out futures< These mar4ets ma4e a2aila1le for trading7 the 2arious deri2ati2es 1ased on commodities$ :sually traded ones are the futures and options$ &o3e2er in India options on commodities are not a2aila1le and are e6pected to 1e introduced soon$ The players in the futures mar4ets are &edgers7 Ar1itragers and in2estors$

&edgers are those 3ho hold simultaneous positions in the spot mar4et also$ These are generally the actual consumers or the producers of the commodities$ For eg# A 3heat farmer 3ho e6pects his har2est to 1e o2er in / months time may sell a futures contract 3ith an e6piry '-

of three months7 so that e2en if the prices happen to fall after three months7 he can still manage to sell at the price at 3hich the contract 3as struc4$ The large scale consumers of the products can also ma4e use of the futures to secure their purchase$ For eg# A cold drin4s can manufacturing company may 1uy tin futures7 so that e2en if the prices happen to rise later7 thy can 1e assured of the supply of ra3 materials at the pre@determined price$

The other major group of participants in the commodity futures mar4et are the importers and the e6porters$ Since they ha2e confirmed o1ligations to e6portGimport fi6ed >uantity of commodities at a particular period of time7 they can ta4e opposite positions in the futures mar4et$

Ar1itrage is a process of ma4ing profits using the price differences 1et3een t3o mar4ets 3ithout e6posing oneself to any ris4$ Ar1itraging is a 2ery profita1le 1usiness$ It is possi1le to ar1itrage 1et3een t3o different futures mar4ets or 1et3een the futures mar4et and the spot mar4et$ &o3e2er in an Hefficient? mar4et ar1itraging is not possi1le7 1ecause any price gap is closed immediately as soon the ar1itragers enter the mar4et$ In2estors are those 3ho participate in the mar4et for profits and are ready to face the ris4 in2ol2ed in the mar4et$ An in2estor can 1e anyone from an indi2idual 3ho has a small surplus income to the treasury des4s of 1an4s and corporate$

%ost commonly traded deri2ati2es around the 3orld are futures7 options and option futures$ Some of the most popular commodity e6changes in the 3orld are listed 1elo3#

'.

!ondon %etals E6change7 !ondon Ne3 Dor4 %ercantile E6change7 Ne3 Dor4 Chicago %ercantile E6change7 Chicago Chicago 0oard of Trade7 Chicago !ondon International Financial Futures and Options E6change =!IFFE<7 !ondon To4yo Commodity E6change7 To4yo 5innipeg Commodity E6change7 Canada

M B2r C2mm2310> E:-5 !"#4?

The 8o2ernment of India permitted esta1lishment of National@le2el %ulti@Commodity e6changes in the year 2**2 and accordingly three e6changes ha2e come into picture$ %ulti@Commodity E6change of India !td7 %um1ai$=%CI<$ National Commodity and eri2ati2e E6change of India7 %um1ai=NC EI<$ National %ulti Commodity E6change7 Ahemda1ad =N%CE<$ &o3e2er there are regional commodity e6changes functioning all o2er the country$ AR commodities 0ro4ing "2t$!td has got mem1ership of 1oth the premier commodity e6changes i$e$ %CI and NC EI$

The t3o e6changes =NCE I;%CI< ha2e seen tremendous gro3th in less than t3o years$ The daily a2erage on these t3o e6changes put together has no3 gro3n to a healthy Rs$-.** crores$ It has 1een 1elie2ed 1y e6perts that the 2olumes on these e6changes 3ould the stoc4 mar4et in the days to come$

'+

Commodity e6changes are regulated 1y For3ards %ar4et Commission =F%C<F For3ards %ar4et Commission 3or4s under the pur2ie3 of the ministry of Food7 Agriculture and "u1lic istri1ution$ At NC EI the contracts e6pire on 2* th day of each month $if 2*th happens to 1e a holiday the e6piry day 3ill 1e the pre2ious 3or4ing day$ At %CI the e6piry day is '( th of e2ery month $If '(th happens to 1e a holiday the e6piry day 3ill 1e the pre2ious day$ The e6piry day differs for different commodities in 1oth the e6changes$ 8enerally commodity futures re>uire an initial margin 1et3een (@'*J of the contract 2alue$ The e6changes le2y higher additional margin in case of e6cess 2olatility$ The margin amount 2aries 1et3een e6changes and commodities$therfore they pro2ide great 1enefits of le2erage in comparison to the stoc4 and inde6 futures trade on the stoc4 e6changes$ The e6change also re>uires the daily profits and losses to 1e paid inGout on open positions =mar4 to %ar4et or %T%< so that the 1uyers and sellers do not carry a ris4 of not more than one day$

A38 !0 "#4 27 -2mm2310> 0r 31!"?

L#8#r "# Commodity futures operate on margin7 meaning that to ta4e a position only a fraction of the total 2alue needs to 1e a2aila1le in cash in the trading account$ Commission Costs$ It is a lot cheaper to 1uyGsell one futures contract than to 1uyGsell the underlying instrument$ For e6ample7 one full si9e S;"(** contract is currently 3orth in e6cess off K2(*7*** and could 1e 1oughtGsold for as little as K2*$ The e6pense of 1uyingGselling K2(*7*** could 1e K27(**L$

2*

L1C.1310> The in2ol2ement of speculators means that futures contracts are reasona1ly li>uid$ &o3e2er7 ho3 li>uid depends on the actual contract 1eing traded$ Electronically traded contracts7 such as the e@miniAs tend to 1e the most li>uid 3hereas the pit traded commodities li4e corn7 orange juice etc are not so readily a2aila1le to the retail trader and are more e6pensi2e to trade in terms of commission and spread$

AA1910> 02 "2 452r0 Futures contracts can 1e sold as easily as they are 1ought ena1ling a speculator to profit from falling mar4ets as 3ell as rising ones$ There is no D./01-6 r.9#D$ N2 DT1m# D#- >D Options suffer from time decay 1ecause the closer they come to e6piry the less time there is for the option to come into the money$ Commodity futures do not suffer from this as they are not anticipating a particular stri4e price at e6piry$

D14 38 !0 "#4 27 -2mm2310> 0r 31!"?

L#8#r "# Can 1e a dou1le edged s3ord$ !o3 margin re>uirements can encourage poor money management7 leading to e6cessi2e ris4 ta4ing$ Not only are profits enhanced 1ut so are lossesM

S/##3 27 0r 31!" Traditionally commodities are pit traded and in order to trade a speculator 3ould need to contact a 1ro4er 1y telephone to place the order 3ho then transmits that order to the pit to 1e e6ecuted$ Once the trade is filled the pit trader informs the 1ro4er 3ho then then informs his client$ This can ta4e some ta4e and the ris4 of slippage occurring can 1e high$ Online futures 2'

trading can help to reduce this time 1y pro2iding the client 3ith a direct lin4 to an electronic e6change$ Dou might find a truc4 of corn on your doorstepM Actually7 most futures contracts are not deli2era1le and are cash settled at e6piry$ &o3e2er some7 li4e corn7 are deli2era1le although you 3ill get plenty of 3arning and opportunity to close out a position 1efore the truc4 turns up$

C2mm23101#4 0r 3#3 1! MCE.

8old7 8old %7 8old &NI7 Sil2er7 Sil2er %7 Sil2er &NI Castor Seeds7 Soy Seeds7 Castor Oil7 Refined Soy Oil7 Soymeal7 R0 "almolein7 Crude "alm Oil7 8roundnut Oil7 %ustard Seed7 %ustard Seed Oil7 Cottonseed Oilca4e7 Cottonseed "epper7 Red Chilli7 Neera7 Turmeric Steel !ong7 Steel Flat7 Copper7 Nic4el7 Tin Oapas7 !ong Staple Cotton7 %edium Staple Cotton Chana7 :rad7 Dello3 "eas7 Tur Rice7 0asmati Rice7 5heat7 %ai9e7 Sar1ati Rice Crude Oil Ru11er7 8uar Seed7 8ur7 8uargum 0andhani7 8uargum7 Cashe3 Oernel7 8uarseed 0andhani

C2mm23101#4 0r 3#3 1! NCDEE.

Agro "roducts Ara1ica Coffee Cashe3 Castor Seed Chana Chilli Common Ra3 Rice Common "ar1oiled Rice Crude "alm Oil Cotton Seed Oilca4e E6peller %ustard Oil 8rade A "ar1oiled Rice 8rade A Ra3 Rice 22

 8uar gum 8uar Seeds 8ur Neera Nute sac4ing 1ags !emon Tur !ong Staple Cotton %aharashtra !al Tur %edium Staple Cotton %ul1erry 8reen Cocoons %ul1erry Ra3 Sil4 %ustard Seed "epper Ra3 Nute R0 "almolein Refined Soy Oil Ro1usta Coffee Ru11er Sesame Seeds Soya1ean Dello3 Soy1ean %eal Sugar Turmeric :rad 5heat Dello3 "eas Dello3 Red %ai9e 0ase %etals %ild Steel Ingots "recious %etals 8old Sil2er

I!31 ! C2mm23101#4 M r6#0

In India commodity mar4ets ha2e 1een in e6istence for decades$ &o3e2er in '+-( the 8o2ernment 1anned for3ard contracts on commodities$ !ater in 2**/ the 8o2ernment of India again allo3ed for3ard contracts in commodities$ There ha2e 1een o2er 2* e6changes e6isting for commodities all o2er the country$ &o3e2er these e6changes are commodity specific and ha2e a strong regional focus$ The 8o2ernment7 in order to ma4e the commodities mar4et more transparent and efficient7 accorded appro2al for setting up of national le2el multi commodity 2/

e6changes$ Accordingly three e6changes are there 3hich deal in a 3ide 2ariety of commodities and 3hich allo3 nation@3ide trading$ They are %ulti Commodity E6change =%CI< National Commodities eri2ati2es E6change =NC EI< National %ulti Commodity E6change =N%CE<

The %CI is %um1ai@1ased and is promoted 1y Financial Technologies "2t !td$ %CI allo3s trading on a host of commodities ranging from 1ullion to grains$ "lease chec4 the HCommodities traded? menu?$ %CI has 1ecome the first e6change in the 3orld to launch futures on steel$ Recently on ''th August 2**)7 %CI crossed a pea4 daily turno2er of Rs$+(* crores$ NC EI is promoted 1y an elite group of financial institutions including NSE7 !IC7 S0I7 :0I etc$7 NC EI also allo3s trading of futures on a host of commodities$ National Commodities and eri2ati2es E6change7 NC EI at Oar2y Commodities7 3e

are focused on ta4ing commodities trading to ne3 dimensions of relia1ility and profita1ility$ 5e ha2e made commodities trading7 an essentially age@old practice7 into a sophisticated and scientific in2estment option$ &ere 3e ena1le trade in all goods and products of agricultural and mineral origin that include lucrati2e commodities li4e gold and sil2er and popular items li4e oil7 pulses and cotton through a 3ell@systemati9ed trading platform$ Our technological and infrastructural strengths and especially our street@smart s4ills ma4e us an ideal 1ro4er$ Our ser2ice matri6 is holistic 3ith a gamut of ad2antages7 the first and foremost 1eing our legacy of human resources7 technology and infrastructure that comes from 1eing part of the AR 8roup$ 2)

Our 3ide national net3or47 spanning the length and 1readth of India7 further supports these ad2antages$ Regular trading 3or4shops and seminars are conducted to hone trading strategies to perfection$ E2ery mo2e made is a calculated one7 1ased on relia1le research that is con2erted into 2alua1le information through daily7 3ee4ly and monthly ne3sletters7 calls and intraday alerts$ Further7 personali9ed ser2ice is pro2ided here 1y a dedicated team committed to gi2ing hassle@free ser2ice 3hile the 1ro4erage rates offered are e6tremely competiti2e$ Our commitment to e6cel in this sector stems from the immense importance that commodities 1ro4ing has to a cross@section of in2estors ;ndashF farmers7 e6porters7 importers7 manufacturers and the 8o2ernment of India itself$

Commodities mar4et essentially represents another 4ind of organi9ed mar4et just li4e the stoc4 mar4et and the de1t mar4et$ &o3e2er7 commodities mar4et7 1ecause of its uni>ue nature lends to the 1enefits of a 3ide spectrum of people li4e in2estors7 importers7 e6porters7 producers7 corporate etc$

W5 0 - ! -2mm2310> m r6#0 277#rF

If you are an 1!8#402r7 commodities futures represent a good form of in2estment 1ecause of the follo3ing reasons$ H1"5 L#8#r "# P The margins in the commodity futures mar4et are less than

the F;O section of the e>uity mar4et$ L#44 M !1/.9 012!4 @ Commodities mar4ets7 as they are go2erned 1y

international price mo2ements are less prone to rigging or price manipulations$ D18#r4171- 012! P The returns from commodities mar4et are free from the direct

influence of the e>uity and de1t mar4et7 3hich means that they are capa1le of 1eing used as effecti2e hedging instruments pro2iding 1etter di2ersification$ 2(

If you are an importer or an e6porter7 commodities futures can help you in the follo3ing 3aysQ H#3"# " 1!40 /r1-# 79.-0. 012!4 P 5ide fluctuations in the prices of import or

e6port products can directly affect your 1ottom@line as the price at 3hich you importGe6port is fi6ed 1efore@hand$ Commodity futures help you to procure or sell the commodities at a price decided months 1efore the actual transaction7 there1y ironing out any change in prices that happen su1se>uently$ If you are a producer of a commodity7 futures can help you as follo3s# L2-6-1! 05# /r1-# 72r >2.r /r23.-# P If you are a farmer7 there is e2ery

chance that the price of your produce may come do3n drastically at the time of har2est$ 0y ta4ing positions in commodity futures you can effecti2ely loc4@in the price at 3hich you 3ish to sell your produce A44.r#3 3#m !3 P Any glut in the mar4et can ma4e you 3ait unendingly for a

1uyer$ Selling commodity futures contract can gi2e you assured demand at the time of har2est$ If you are a large scale consumer of a product7 here is ho3 this mar4et can help you# C2!0r29 >2.r -240 P If you are an industrialist7 the ra3 material cost dictates the

final price of your output$ Any sudden rise in the price of ra3 materials can compel you to pass on the hi4e to your customers and ma4e your products unattracti2e in the mar4et$ 0y 1uying commodity futures7 you can fi6 the price of your ra3 material$ E!4.r# -2!01!.2.4 4.//9> P Any shortfall in the supply of ra3 materials can

stall your production and ma4e you default on your sale o1ligations$ Dou can a2oid this ris4 1y 1uying a commodity futures contract 1y 3hich you are assured of supply of a fi6ed >uantity of materials at a pre@decided price at the appointed time$

2,

The effecti2e mechanism of settlement and deli2ery procedures adopted and employed 1y %CI has once again undergone rigorous tests and ha2e come out e6tremely successful$ This is signified 3ith the surging trading 2olume in 1ullion contracts and high open interest entering the settlement period resulting in healthy >uantities getting physically deli2ered$ This 3hole process underscores the efficacy ; transparency of the complete trading7 settlement and deli2ery process employed 1y %CI$ The complete deli2ery procedure right from getting the possession of the precious metal from the sellers7 necessary >uality certifications7 consignment mo2ement7 handing o2er the precious metal to the 1uyers7 etc 3as completed in flat ( days period$ The complete process has 1een 3or4ed out at a 2ery optimal cost and on an a2erage each participant in2ol2ed in the deli2ery process had incurred only Rs$ /(*G@ per transaction$

In all the pre2ious settlements also %CI platform has al3ays seen appropriate percentage of open interest position resulting in physical deli2ery$ 8old has seen a cumulati2e physical deli2ery of 2)( 4gs and Sil2er 2'+* 4gs across all the settlements completed 1efore the current settlement$ 8old ; sil2er futures contracts are getting recogni9ed as the most relia1le ; dependa1le in2estment options that are today a2aila1le to traders and in2estors 3ho are loo4ing to 3iden their portfolio 1eyond e>uity instruments$ This is 1ecause of the credi1ility that these commodities ha2e enjoyed glo1ally and the technical ; fundamental analysis that has gone in arri2ing at 2arious trading strategies$ India is the largest importer for 8old in the 3orld7 around .** tons per year7 reali9ing this potential of 8oldF 8o2ernment of India has set up a committee to e6amine the regulatory structure of the gold industry to ma4e India a gold trading hu1$ This committee is constituted 2-

under the Chairmanship of Secretary7

epartment of Commerce7 %inistry of Commerce ;

Industry$ %CI is a mem1er of the committee and loo4s for3ard to contri1uting suggestions on the role that Futures mar4et can play in ma4ing India a glo1al gold trading hu1$ The first meeting for the 8old Committee is 1eing held under the Chairmanship of Commerce Secretary on '*th ecem1er 2**)$

AA2.0 M.901 C2mm2310> E:-5 !"# 27 I!31 L03. (MCE)

%ulti Commodity E6change of India !td7 =%CI< an independent and de@mutualised multi commodity e6change7 has permanent recognition from the 8o2ernment of India$ %CI7 a state@of@the@art nation3ide7 digital e6change facilitates online trading7 clearing and settlement operations for a commodities futures trading$ Oey shareholders of %CI are Financial Technologies =India< !td7 State 0an4 of India7 :nion 0an4 of India7 0an4 of India7 Corporation 0an4 ; Canara 0an4$ &ead>uartered in %um1ai7 %CI is led 1y an e6pert management team 3ith deep domain 4no3ledge of the commodity futures mar4ets and has successfully esta1lished a thri2ing digital mar4et for trading in 8old7 Sil2er7 Steel7 Oapas7 Cotton7 Ru11er7 0lac4 "epper7 Oil ; Oil Seeds7 5heat and Rice7 Ferrous and Non@Ferrous %etals7 Agri Commodities7 "ulses and Soft commodities$

The collapse of e>uity mar4ets and the arri2al of lo3 interest rates ha2e increased the in2estor presence in alternati2e in2estments such as gold$ In India7 gold has traditionally played a multi@faceted role$ Apart from 1eing used for adornment purpose7 it has also ser2ed as an asset of the last resort and a hedge against inflation and currency depreciation$ 0ut most importantly7 it has most often 1een treated as an in2estment$

2.

8old supply primarily comes from mine production7 official sector sales of glo1al central 1an4s7 old gold scrap and net disin2estments of in2ested gold$ Out of the total supply of /.-* tons last year7 ,,J 3as from mine production7 2* J from old gold scrap and ')J from official sector sales$ emand glo1ally emanates from fa1rication =je3ellery and other fa1rication<7 0ar hoarding7

Net producer hedging and Implied in2estment$ 8old continues to occupy a prominent part in rural Indian economy and a significant part of the rural credit mar4et re2ol2es around 1ullion as security$ India is the largest consumer of gold in the 3orld accounting for more than 2/J of the total 3orld demand annually$ According to unofficial estimates7 India has more than '/7*** tonnes of hoarded gold7 3hich translates to around Rs ,7(*7*** crore$ Inspite of its predominant position7 especially in the gold mar4et 3here India is the largest importer7 India has traditionally 1een a price see4er in the glo1al 1ullion mar4et$

0ullion trading in India recei2ed a major fillip$ Follo3ing the changes in the 8old "olicy announced 1y the 8o2ernment of India7 in '++- under e6port@import "olicy '++-@2**2$ As per the policy7 scheduled commercial 1an4s are authori9ed 1y the Reser2e 0an4 of India =R0I< to import gold and sil2er for sale in domestic mar4et 3ithout an Import license or surrendering the Special Import !icense =SI!<$ 0ullion is imported into India 1y 1an4s and four designated trading agencies acting as canali9ing agents and consignees for o2erseas suppliers7 3ho in turn sell to domestic 3holesale traders7 fa1ricators7 etc$ The price ris4 is 1orne either 1y the fa1ricator or the retail consumer$ The 3holesale traders7 fa1ricators and in2estors do not ha2e any effecti2e tool to hedge their price ris4 in gold G sil2er$ NC EI is promoted 1y an elite group of financial institutions including NSE7 !IC7 S0I7 :0I etc$7 NC EI also allo3s trading of futures on a host of commodities$

2+

The follo3ing ta1les indicate the 2arious commodities traded in 1oth e6changes and also the critical information regarding the 2arious contracts$

N 012! 9 C2mm2310> G D#r18 018#4 E:-5 !"# L1m10#3 (NCDE) R#".9 012!4 72r S/20 !3 D#r18 018#4 M r6#0
1 TITLEH EETENT AND COMMENCEMENT The Regulations framed hereunder shall 1e 4no3n as National Commodity ; eri2ati2es E6change !imited7 Regulations7 2**/ =herein referred to as HRegulations?< and shall come into effect immediately on appro2al 1y the For3ard %ar4et Commission or any other authority appointed under the For3ard Contracts =Regulation< Act7 '+(2 or any other applica1le la3$ These Regulations shall 1e in addition to the pro2isions of the For3ard Contracts =Regulation< Act '+(2 and Rules framed there under and Rules and 0yela3s of National Commodity ; eri2ati2es E6change !imited =herein referred to as HNC EI? or

HE6change?<7 as in force and any other applica1le la3s of India$ The Regulations ha2e 1een di2ided into t3o main di2isions pertaining to Trading and Clearing for sa4e of con2enience only and 1oth the di2isions shall 1e read together 3here2er and 3hene2er the conte6t re>uires$ The titles of the clauses are only for con2enience and may not read as su1ject for the contents of clauses$ National Commodity ; eri2ati2es %ar4et '* G '(2 eri2ati2es E6change !imited Regulations for Spot and

/*

2 =&RISDICTIONS :nless specifically mentioned other3ise in these Regulations7 0ye !a3s or Rules of the E6change7 any matter arising out of or pertaining to these Regulations shall 1e Clearing %em1er su1ject to jurisdiction of the Courts of %um1ai irrespecti2e of the place of 1usiness of Trading or Clearing %em1ers and irrespecti2e of place from 3here the transaction is entered Into National Commodity ; eri2ati2es %ar4et eri2ati2es E6change !imited Regulations for Spot and

( DEFINITIONS :nless in the conte6t it is e6plicitly stated other3ise7 all 3ords and e6pressions used herein 1ut not defined7 and defined in the follo3ing7 shall ha2e the meanings respecti2ely assigned to them therein in the follo3ing order of priority#

=i< For3ard Contracts =Regulation< Act '+(2 and Rules framed hereunder$ =ii< Companies Act7 '+(, =iii< Rules of National Commodity ; eri2ati2es E6change !td =i2< 0yela3s of National Commodity ; eri2ati2es E6change !imited

/'

C2mm2310> 7.0.r#4 !3 2/012! -2!0r -04

A futures contract is a legally 1inding agreement 1et3een t3o parties to 1uy or sell in the future7 on a designated e6change7 a specific >uantity of a commodity at a specific price$ The 1uyer and seller of a futures contract agree no3 on a price for a product to 1e deli2ered7 or paid7 for at a set time in the future7 4no3n as the Rsettlement date$R Although actual deli2ery of the commodity can ta4e place in fulfillment of the contract7 most futures contracts are actually closed out or RoffsetR prior to deli2ery$ An option on a commodity futures contract is a legally 1inding agreement 1et3een t3o parties that gi2es the 1uyer7 3ho pays a mar4et determined price 4no3n as a Rpremium7R the right =1ut not the o1ligation<7 3ithin a specific time period7 to e6ercise his option$ E6ercise of the option 3ill result in the person 1eing deemed to ha2e entered into a futures contract at a specified price 4no3n as the Rstri4e price$R In some cases7 an option may confer the right to 1uy or sell the underlying asset directly7 and these options are 4no3n as options on the physical asset$

C 45 !3 F2r@ r3 M r6#04
In the days 1efore credit 3as readily accessi1le7 some stores carried the sign7 Rcash and carry7R meaning# pay your cash and carry a3ay the merchandise you purchased$ That7 in its simplest form7 is the cash mar4et$ The 1uyer finds the precise commodity that suits him@@ perhaps an orange that has ripened to the proper degree@@pays his money and 1ecomes the o3ner of the merchandise$ ItAs a time@tested mar4et system7 and the one most 3idely used in all forms of 1usiness to transfer title to goods$

/2

Sometimes7 cash mar4ets can 1e modified and impro2ed to ser2e a particular purpose$ For e6ample7 a person 3ho goes to the ne3sstand to 1uy a maga9ine may find it is more con2enient to contract 3ith the pu1lisher for deli2ery at home$ This modification is called a for3ard contract7 and such contracts are 3idely used in many types of 1usiness$ The 1uyer and the seller agree today on a description of the product that 3ill 1e deli2ered in satisfaction of the contract$ The 1uyer ma4es payments as agreed7 and the seller 3ill deli2er the asset at a designated site on a specified date$ The system 3or4s >uite 3ell 3hen the cost of producing the commodity is 4no3n and the selling price is presently accepta1le to a 1uyer$ &o3e2er7 3ith commodities that compete in 3orld or national mar4ets7 such as coffee7 there are many relati2ely small producers scattered o2er a 3ide geographic area$ These 3idely dispersed producers find it difficult to 4no3 3hat prices are a2aila1le7 and the opportunity for producer7 processor7 and merchandiser to ascertain their li4ely cost for coffee and de2elop long range plans is limited$ Futures trading7 used in the %id3est for grains and similar farm commodities since '.(+7 and adapted for coffee in '+((7 pro2ides the industry 3ith a guide to 3hat coffee is 3orth no3 as 3ell as todayAs 1est estimate for the future$

Pr1-#4 !3 Pr1-# F -02r4

In a competiti2e mar4et system7 1uyers and sellers determine prices for commodities through their transactions in the mar4etplace$ The prices at 3hich sellers offer to sell their goods and 1uyers 1id to 1uy them are 1ased on their 1est current assessments of the supply and demand for the commodity$ :sually7 no one 4no3s the e6act total supply of a commodity$ For e6ample7 in the :nited States most commodities are produced 1y many firms$ Storage and o3nership also are fragmented$ The total supply a2aila1le usually is an estimate7 as is ne3 production7 and //

in2entory figures are not precise$ In addition7 the >uality of the commodity fre>uently is not 4no3n$ Thus contri1uting to the comple6ity of determining an appropriate price$

E2en 3ith its pro1lems7 the :$S$ commodity price reporting system generally is 1etter and reports are more a2aila1le pu1licly than commodity reports from many other countries$ Since most commodities trade internationally and are affected 1y incompletely reported situations in other countries7 :$S$ mar4ets must cope 3ith such un4no3ns$ emand is e2en more difficult to measure7 1ased as it is on 3hat people may decide they 3ish to 1uy$ Changing prices may alter consumersA intentions regarding the >uantity of a close su1stitute commodity they 3ant@@or 3hether they 3ant it at all$ The a2aila1ility of a su1stitute may change the demand picture for the original product as 3ell as for the related one$ &o3e2er7 prices for goods in the mar4etplace play a 2ital role in our economic system and help to efficiently allocate scarce resources$ %ar4ets and prices play 2ital roles in our economy system and help to determine our standard of li2ing$ %ar4ets are the ner2e system of our decentrali9ed economic systemF prices are the impulses con2eyed throughout the system7 ena1ling us to respond stimuli and produce goods and ser2ices efficiently and changing prices force to adjust and moderate our consumption pattering$ In other 3ords7 price influences production and consumption$ "rice is a rationalF if the price is right7 the supply of a commodity should 1alance the demand for it@@ production should match use$

If the price is too high7 some 3ho may ha2e planned to use a product may decide to use less7 go 3ithout7 or they may select a su1stitute@@eat chic4en instead of 1eef7 for e6ample$ If

/)

enough users are priced out of the mar4et7 price may turn do3n 3hich may encourage more use and discourage production$ If the price is too lo37 users 3ill deplete e6isting supply and a shortage may de2elop$ Su1se>uently7 prices may rise7 3hich 3ill tend to discourage marginal 1uying$ Should price remain relati2ely high this 3ould li4ely promote production or attract additional supply of good$ "rocessors and merchandisers are guided 1y the prices that people are 3illing to pay for their goods$ Their mar4eting decisions are made independently7 1ased on estimates of 3hat consumers are 3illing to 1uy and ho3 much they are 3illing to pay$ Once in the mar4eting system7 goods are channeled from point of production to processor and distri1utor and on to the consumer$ Futures trading does not enter directly into these channelsF it supplies information on price 3hich reflects 1uyersA and sellersA current 2ie3 on a commodityAs 2alue and pro2ides a means to transfer the price ris4 of holding these items in in2entory for later sale$

Tr !47#rr1!" R146? H#3"1!"

Commodity production and mar4eting in2ol2e si9a1le price ris4s7 and ris4 represents a cost 3hich affects the 2alue of a commodity$ 5hile there is no 3ay to eliminate uncertainty7 futures mar4ets pro2ide a competiti2e 3ay for commodity producers7 merchandisers7 processors7 and others 3ho may o3n the actual commodity to transfer some price ris4 to speculators 3ho 3ill 3illingly assume such ris4 in hopes of ma4ing a profit$ The process of hedging in2ol2es the concurrent use of 1oth cash and futures mar4ets$ Since futures and cash prices tend to mo2e together =that is7 parallel to each other<7 and at contract e6piration con2erge to one price7 it is possi1le for a cotton merchant7 for e6ample7 to hedge an unsold in2entory of cotton 3ith a sale of an e>ui2alent amount of futures contracts$ Since the merchant o3ns the commodity7 he 3ould ha2e a loss if prices fell$ To hedge7 the /(

merchant 3ould sell futures contracts$ No3 if prices drop7 the cash mar4et loss 3ill 1e at least partially offset 1y a gain on the futures contract$ 5hen the merchant sells his in2entory at the lo3er cash mar4et price7 he 3ill simultaneously lift his hedge 1y 1uying 1ac4 his futures contracts at the lo3er price$ The gain on his futures contracts should roughly e>ual the merchantAs loss in the cash mar4et$ Con2ersely7 a cotton mill o3ner 3ho 3anted to sell a customer a >uantity of cloth for deli2ery some months from no37 1ut does not o3n enough cotton to produce the cloth7 could hedge 1y 1uying enough futures contracts to co2er the for3ard sale of cloth$ &e no3 has a price for ra3 material to 3hich operating and production costs can 1e added to arri2e at a 1ase price for cloth$ Suoting such a price 1efore 1uying the cotton 3ould ma4e him 2ulnera1le to a price rise7 1ut ha2ing 1ought futures in a >uantity e>ui2alent to his needs7 he has some assurance that a rise in futures prices 3ould lessen the impact of a rise in the cost of the actual cotton$ &ere are three e6amples of ho3 hedging hps the cash mar4et 3or4 1etter# &edging stretches the mar4eting period$ For instance7 a li2estoc4 feeder does not ha2e to 3ait until his cattle are ready to mar4et 1efore he can sell them$ The futures mar4et permits him to sell futures contracts to esta1lish the appro6imate sale price at any time 1et3een the time he 1uys his cal2es for feeding and the time the fed cattle are ready to mar4et7 some four to si6 months later$ &e can ta4e ad2antage of good prices e2en though the cattle are not ready for mar4et$ &edging protects in2entory 2alues$ A merchandiser 3ith a large7 unsold in2entory can sell futures contracts that 3ill protect the 2alue of the in2entory7 e2en if the price of the commodity drops$

/,

&edging permits for3ard pricing of products$ A je3elry manufacturer can determine the cost for gold7 sil2er or platinum 1y 1uying a futures contract7 translate that to a price for the finished products7 and ma4e for3ard sales to stores at firm prices$ &a2ing made the for3ard sales7 the manufacturer can use its capital to ac>uire only as much gold7 sil2er7 or platinum as may 1e needed to ma4e the products that 3ill fill its orders$ These are just a fe3 3ays that futures mar4ets are used 1y commodity o3ners$ Adapting 1asic principles to indi2idual situations tests the ingenuity of hedgers and demonstrates the management fle6i1ility pro2ided 1y futures trading$ 0ut mar4et users should 1e fore3arned that hedging is not an academic e6ercise$ It re>uires s4ill and 4no3ledge ac>uired only 1y study and e6perience$ Finally7 3hile a hedge transfers price ris47 it also denies the opportunity to gain from fa2ora1le price mo2ements in the cash mar4et$ For this reason7 options on the actual commodity andGor options on futures contracts are popular among people 3ho see4 price protection7 1ut 3ho do not 3ish to miss a fa2ora1le price mo2ement$ 5ith the payment of a premium7 the 1uyer of an option can ac>uire the right7 1ut not the o1ligation7 to 1uy or sell a futures contract at a specified price 3ithin a specified period of time =as stated in the option contract<$ In this 3ay7 for e6ample7 the holder of a put option can protect against a drop in the 2alue of that in2entory7 1ut remain free to gain from an increase in the price of the commodity held in in2entory$ There are many factors to consider in deciding 3hether to hedge 3ith futures7 1uy or sell an option on a futures contract7 or simply for3ard contract in the cash mar4et$ A detailed discussion of this topic goes 1eyond the scope of this 1rief pu1lication$ For more information7 consult your li1rary or contact the e6change 3hich trades the commodity of interest$

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COMPANY PROFILE

/.

C2m/ !> Pr2719#

I!0r23.-012!? AnandRathi =AR< is a leading full ser2ice securities firm pro2iding the entire gamut of financial ser2ices$ The firm7 founded in '++) 1y %r$ AnandRathi7 today has a pan India presence as 3ell as an international presence through offices in u1ai and 0ang4o4$ AR

pro2ides a 1readth of financial and ad2isory ser2ices including 3ealth management7 in2estment 1an4ing7 corporate ad2isory7 1ro4erage ; distri1ution of e>uities7 commodities7 mutual funds and insurance @ all of 3hich are supported 1y po3erful research teams$

The firmAs philosophy is entirely client centric7 3ith a clear focus on pro2iding long term 2alue addition to clients7 3hile maintaining the highest standards of e6cellence7 ethics and professionalism$ The entire firm acti2ities are di2ided across distinct client groups# Indi2iduals7 "ri2ate Clients7 Corporates and Institutions$

The company is also maintaining an e6cellent relationship 3ith the clients7 the 1ro4ers7 the employees7 and the 1an4ers$

/+

CO%"AND &ISTORD OF T&E "!ACE The AnandRathi Securities !T %aharastra state$ RE8 $OFFICE =&ead Office< /rd Floor7 N O Somani 0uilding 0ritish &otel !ane %um1ai Samachar %arg %um1ai @ )** *2/7 India$ Tel# +'@22@,,/- -*** Fa6# +'@22@,,/- -*-* %ANA8E%ENT TEA% OF T&E CO%"AND %r$ AnandRathi 8roup Chairman %r$ "radeep 8upta Tice Chairman %r$ Amit Rathi %anaging irector 0RANC& OFFICE Sri Orishna To3ers72nd Floor7 CTS NO$ ') Ohanapur Road7 Tila43adi7 &ydera1ad A" "in # (+***, Tel # *./'@)2*-/**G /*+.2/) 3as esta1lished in the year of '++) in %um1ai7

)*

FINANCIA! AN A TISORD SERTICES 5ealth management In2estment 1an4ing Corporate Ad2isory 0ro4erage and istri1ution of E>uities7 Commodities7 %utual Funds and Insurance

C!IENTS OR C:STO%ERS Indi2iduals "ri2ate clients Corporates and Institutions

AR C2r# S0r#!"054
$r# 305 27 S#r81-#4 In line 3ith its client@centric philosophy7 the firm offers to its clients the entire spectrum of financial ser2ices ranging from 1ro4erage ser2ices in e>uities and commodities7 distri1ution of mutual funds7 I"Os and insurance products7 real estate7 in2estment 1an4ing7 merger and ac>uisitions7 corporate finance and corporate ad2isory$ Clients deal 3ith a relationship manager 3ho le2erages and 1rings together the product specialists from across the firm to create an optimum solution to the client needs$ M ! "#m#!0 T# m AR 1rings together a highly professional core management team that comprises of indi2iduals 3ith e6tensi2e 1usiness as 3ell as industry e6perience$ I!-D#/05 R#4# r-5 AR?s research e6pertise is at the core of the 2alue proposition that 3e offer to our clients$ Research teams across the firm continuously trac4 2arious mar4ets and products$ The )'

aim is ho3e2er common @ to go far deeper than others7 to deli2er incisi2e insights and ideas and 1e accounta1le for results$

Firm?s senior %anagement comprises a di2erse talent pool that 1rings together rich e6perience from across industry as 3ell as financial ser2ices$

T5# /r23.-04I4#r81-#4 27 05# A! !3R 051 r# 4 72992@4? 1. I!31813. 94

( ) Pr18 0# @# 905 m ! "#m#!0
I!0r23.-012!# Affluent indi2iduals need sophisticated ad2ice and strategic guidance to capitali9e on opportunities to preser2e7 gro3 and transfer their 3ealth$ In addition7 a desire e6ists 3ithin 3ealthy families to simplify the management of multigenerational needs and lessen the profound emotional impact of 3ealth on family mem1ers$of AR offers the most e6tensi2e platform of customi9ed ser2icing7 indi2idual strategies and products to help meet the re>uirements of the affluent pri2ate in2estor$ 5e pro2ide comprehensi2e7 integrated in2estment strategies to address your 3ealth management needs$ 5or4ing closely 3ith specialists across firm "5% offers an array of products ; ser2ices7 3hich includes ARAs highly rated research$ P519242/5># The AnandRathi tries and understands client?s financial needsF to offer them personal ad2ice and e6pert analysis that they need to ma4e their assets go the E6tra mile$ Firm?s a1ility to thin4 far ahead and formulate a long@term strategy7 coupled 3ith long hours of practice and research are the 4ey dri2ers7 3hich ma4e in2estors 3ealth 3or4 harder for them$ The company 1elie2es that the 4ey to 1uild 3ealth lies in allocating assets across 2arious mar4ets7 financial instruments and industry sectors$ Oeeping this in mind the firm le2erage it?s e6pertise in scientific asset allocation7 to help ma6imi9e returns and minimi9e ris4s$

)2

Pr2-#44# The firm reali9e the need to simplify the comple6ities of the in2estment strategies and it achie2e this 1y offering highly customi9ed pri2ate 3ealth management $The firm?s "ersonali9ed Relationship %anagers along 3ith the e6pert team of analysts and ad2isors 3ill assist to in2estors in analy9ing all their in2estment needs and ad2ice them on speciali9ed solutions created e6clusi2ely for them$ The firm has e6cellent research team7 3ho constantly screens the mar4et for in2estment prospects$ The team pro2ides support in fine@tuning the in2estment strategy ; suggests ho3 to capitali9e on these opportunities$

Pr23.-04? EC.10> G D#r18 018#4 M.0. 9 F.!34 D#/24102r> S#r81-#4 C2mm23101#4 I!4.r !-# $r261!" IPO4 R#4# r-5# It?s research e6pertise is at the core of the 2alue proposition that they offer to its clients$ Research teams across the firm continuously trac4 2arious mar4ets and products$ The aim is ho3e2er common @ to go far deeper than others7 to deli2er incisi2e insights and ideas and 1e accounta1le for results$ AR research processes incorporate >uantitati2e areas 3ell as >ualitati2e analyses$ This multi@pronged approach helps us to pro2ide superior ris4@ adjusted returns for our clients$

)/

AR analysts pro2ide o1jecti2e and decisi2e research that is designed to ena1le clients to ma4e informed in2estment decisions$ The team co2ers entire spectrum of financial mar4ets from e>uities7 fi6ed income7 and commodities to currencies$ They also co2er the glo1al mar4ets7 to gi2e clients an unparalleled macro@2ie3 of the in2estment opportunities across the glo1e$

A) $r26#r "# !3 3140r1A.012!

EC.10> G D#r18 018#4 $r26#r "##

AnandRathi pro2ides end@to@end e>uity solutions to institutional and indi2idual in2estors$ Consistent deli2ery of high >uality ad2ice on indi2idual stoc4s7 sector trends and in2estment strategy has esta1lished us a competent and relia1le research unit across the country$ Clients can trade through us online on 0SE and NSE for 1oth e>uities and deri2ati2es$ They are supported 1y dedicated sales ; trading teams in its trading des4s across the country$ Research and in2estment ideas can 1e accessed 1y clients either through their designated dealers7 email7 3e1 or S%S
M.0. 9 F.!34#

AR is one of IndiaAs top mutual fund distri1ution houses$ Its success lies in the firm philosophy of pro2iding consistently superior7 independent and un1iased ad2ice to their clients 1ac4ed 1y in@depth research$ The AR team firmly 1elie2es in the importance of selecting appropriate asset allocations 1ased on the clientAs ris4 profile$

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D#/24102r> S#r81-#4#

AR

epository Ser2ices pro2ides to in2estors 3ith a secure and con2enient 3ay for

holding their securities on 1oth C S! and NS !$The firm?s depository ser2ices include settlement7 clearing and custody of securities7 registration of shares and demateriali9ation$ It offer to the in2estors daily updated internet access to their holding statement and transaction summary$
C2mm23101#4#

Commodities 1ro4ing @ a 3hole ne3 opportunity to hedge 1usiness ris4 and an attracti2e in2estment opportunity to deli2er superior returns for in2estors$ The firm?s commodities 1ro4ing ser2ices include online futures trading through NC EI and %CI and depository ser2ices through C S!$ Commodities 1ro4ing is supported 1y a dedicated research cell that pro2ides 1oth technical as 3ell as fundamental research$ Its research co2ers a 1road range of traded commodities including precious and 1ase metals7 Oils and Oilseeds7 agri@commodities such as 3heat7 chana7 guar7 guar gum and spices such as sugar7 jeera and cotton$ In addition to transaction e6ecution7 the firm pro2ides customi9ed ad2ice on hedging strategies7 in2estment ideas and ar1itrage opportunities to clients$
I!4.r !-# $r261!"#

As an insurance 1ro4er7 AR pro2ide to its clients comprehensi2e ris4 management techni>ues7 1oth 3ithin the 1usiness as 3ell as on the personal front$ Ris4 management includes identification7 measurement and assessment of the ris4 and handling of the ris47 of 3hich insurance is an integral part$ The firm deals 3ith 1oth life insurance and general insurance products across all insurance companies$ AR?s guiding philosophy is to manage the clientsA entire ris4 set 1y pro2iding the optimal le2el of co2er at the least possi1le cost$

)(

The entire sales process and product selection is research oriented and customi9ed to the clientAs needs$ 5e lay strong emphasis on timely claim settlement and post sales ser2ices$
AR 4#r81-#4#

IPOJ4#

Ris4 %anagement ue diligence and research on policies a2aila1le Recommendation on a comprehensi2e insurance co2er 1ased on clients$ %aintain proper records of client policies Assist client in paying premiums Continuous monitoring of client account Assist client in claim negotiation and settlement

The firm is a leading primary mar4et distri1utor across the country$ Its strong performance in I"Os has 1een a result of its 2ast e6perience in the "rimary %ar4et7 a 3ide net3or4 of 1ranches across India7 strong distri1ution capa1ilities and a dedicated research team The firm has 1een consistently ran4ed among the top '* distri1utors of I"Os on all major offerings$ Its I"O research team pro2ides clients 3ith in@depth o2er2ie3s of forthcoming I"Os as 3ell as in2estment recommendations$ Online filling of forms is also a2aila1le$

),

(-) NRI4
AR is the perfect gate3ay to the 3ealth of in2estment opportunities in India for Non@ Resident Indians$ 5ith it 3ill dedicated NRI des4 in India and Relationship %anagers in2estors o3n country7 in2estors get the 1est of 1oth 3orlds @ real understanding of their in2estment needs as 3ell on@the@ground e6pertise$ I0 /r2813#4 05# 72992@1!" 4#r81-#4 72r NRI4. Superior understanding of the Indian economy ; mar4ets A1ility to structure and manage your ta6 and regulatory compliances edicated relationship team :nparalleled product range @ Indian and 8lo1al

2$ I!4010.012!4 ( ) I!4010.012! 9 EC.101#4

The Institutional sales and trading team pro2ides cutting edge mar4et information and in2estment ad2ice to clients7 coupled 3ith e6cellent e6ecution capa1ilities$ A highly e6perienced and reputed team of e>uity analysts supports the sales team$ There is an e6tensi2e focus on research on companies7 sectors and macro@economy$ The institutional e>uity team trac4s nearly 2(* large and mid@si9ed companies to gi2e clients an unparalleled 1readth of ideas$ It also pro2ide In2estment Ad2isory Ser2ices for institutional clients in India and o2erseas for in2estment in the Indian e>uity mar4ets

)-

(A) M ! "#3 I!8#40m#!0 4#r81-#4

P2r072912 M ! "#m#!0 S#r81-#4 (PMS)? AR "ortfolio %anagement Ser2ice is a discretionary in2estment ser2ice created to meet the demand for more targeted in2estment styles and opportunities$ It offers a range of speciali9ed in2estment strategies designed to capture opportunities across the mar4et spectrum$ The range of products 2aries from the highly defensi2e7 capital@protected to the most aggressi2e strategies in the e>uities and deri2ati2es mar4ets$

The firm?s in2estment process ensures that in2estors? strategy and portfolio are 1uilt on solid foundations$ Together clients and their relationship manager select the strategy in line 3ith their indi2idual goals$ AR in2estment specialists then construct and manage clints portfolio in accordance 3ith the chosen in2estment strategy$

R# 9 E40 0# O//2r0.!101#4 F.!3# AR Real Estate Opportunities Fund is a pri2ate e>uity fund for high net@3orth indi2iduals7 corporate and institutions7 to in2est in e>uity@lin4ed instruments in the Indian real estate and infrastructure sectors$ As part of the structural reforms to further 1oost IndiaAs economic gro3th7 the go2ernment has recogni9ed the need for institutional finance in the real estate sector$ In early 2**(7 the go2ernment has rela6ed the F I guidelines in real estate and also allo3ed the setting up of real estate in2estment funds under SE0I guidelines$ These de2elopments are e6pected to pro2ide much needed capital to pro2ide for the increasing demand for >uality real estate in major ur1an centers across the country$ To capture this opportunity7 AR has 1rought together a team of specialists and ad2isors to guide the fundAs in2estment ).

3ho 1ring together e6pertise in the areas of real estate consulting7 de2elopment7 legal and financial structuring$

/$ Corporate
( ) I!4010.012! 9 @# 905 m ! "#m#!0 Corporate and Institutional treasuries need e2er more sophisticated ad2ice that is 1ac4ed 1y serious and credi1le research$ AR I5% pro2ides its institutional clients integrated 3ealth management solutions across glo1al mar4ets7 3hich are 1ac4ed 1y proprietary glo1al economic ; in2estment research$

(A) I!8#40m#!0 A !61!" !3 -2r/2r 0# F1! !-# I!8#40m#!0 $ !61!"? AR In2estment 0an4ing pro2ides comprehensi2e ser2ices to clients including raising money in the e>uity capital mar4ets to identifying strategic alliances7 mergers and ac>uisition opportunities and de1t financing ; restructuring ad2isory$

C2r/2r 0# F1! !-#? The AR Corporate Finance team helps clients manage their de1t@financing needs 1y profiling 1usiness and cash@flo3 ris4s7 defining the alternati2e sources of funding7 1uilding in multiple 2aria1les such as currencies7 fi6ed@floating7 tenure7 collateral etc$ in a comprehensi2e manner and finally negotiating 3ith the prospecti2e lenders G 1uyers$

The team has also 1uilt an impressi2e trac4@record in de1t restructuring 1ased on its superior understanding of 1usiness needs and relationships 3ith 4ey lenders$

)+

The Corporate Finance team has handled assignments in 1usinesses li4e paper7 hospitality7 telecom7 te6tiles and sugar$ S#r81-#4 M#r-5 !0 $ !61!"? A highly e6perienced e>uity capital mar4ets team7 a pan@India distri1ution presence and a high le2el of >uality and integrity in e6ecuting clientAs transactions has ena1led us to pro2ide tangi1le 2alue to the firm?s clientsA 1usinesses$ The firm 1rings >uality independent ad2ice and e6cellent e6ecution capa1ilities to create landmar4 transactions for clients$ The firm?s trac4 record of successfully lead managed I"O?s includes Tips Industries7 Emmy7 &C! Info systems and "ro2ogue$

MGAH Pr18 0# EC.10>? The firm?s %ergers ; Ac>uisition team 3or4s 3ith clients in creating lasting sta4eholder 2alue through ad2ice on mergers7 ac>uisitions7 di2estitures and pri2ate e>uity financing$ The team le2erages on the firmAs superior understanding of 1usinesses and ta6 and regulatory en2ironments as 3ell as a deep net3or4 of relationships across the professional and corporate 3orld$ the firm has 1een 3or4ed e6tensi2ely 3ith clients in industries li4e cement7 sugar7 chemicals7 po3er and te6tiles for mergers and ac>uisition deals7 2aluation and 1usiness restructuring$

(*

(-) C2r/2r 0# A38142r> 4#r81-#4

I!0r23.-012!? AnandRathi Ad2isors assists companies in reali9ing tangi1le impro2ements in 2arious facets of their 1usinesses 1y pro2iding a range of corporate ad2isory ser2ices that includes the entire gamut from financial7 organi9ational and operational restructuring7 to profit impro2ement and 1usiness turnaround strategies$ &ighly >ualified and thoroughly professional7 its specialists7 e6perts and associates assist to clients in conceptuali9ing pro1lems and de2ising effecti2e solutions7 3hate2er 1e clients need$ Successful assignments underta4en for leading organi9ations in India as 3ell as o2erseas 1ear ample testimony to our 3ide@ranging capa1ilities7 utili9ing firm?s unparalleled 1usiness 4no3@ho3 to gi2e you the competiti2e edge$

S#r81-#4 "erformance Impro2ement and Cost Reduction 0usiness Strategy and Re@engineering Financial7 0usiness ; Organi9ational restructuring 0usiness Turn@around Strategies %anagement Systems# %IS7 Re2ie3 ; Control %echanism

('

(3) Cr244-$2r3#r A38142r>

I!0r23.-012!? ynamic Or1its is the international interface of AnandRathi 8roup7 inter alia ynamic Or1its is engaged in 1uilding strategic alliances7 outsourcing contracts7 contract manufacturing alliances7 cross 1order joint 2entures and cross 1order ac>uisitions$

MILESTONES? '++)# Started acti2ities in consulting and Institutional e>uity sales 3ith staff of '( '++(# Set up a research des4 and empanelled 3ith major institutional in2estors '+++# !ead managed first I"O and e6ecuted first % ; A deal 2**'# Initiated 5ealth %anagement Ser2ices 2**2# Retail 1usiness e6pansion recommences 3ith o3nership model 2**/# 5ealth %anagement assets cross Rs'(** crores Retail 0ranch net3or4 e6ceeds (* Insurance 1ro4ing launched !aunch of 5ealth %anagement ser2ices in u1ai 2**)# Retail 0ranch net3or4 e6pands across '** locations 3ithin India 5ealth %anagement assets cross Rs/***crores Institutional e>uities 1usiness relaunched and senior research team put in place 2**(# Retail 0ranch net3or4 e6pands across 2** locations 3ithin India 2**,# Completes its presence in all States across the country 3ith offices at /**L locations 3ithin India$ Ran4ed amongst South Asia?s top ( 3ealth managers for the ultra@rich 1y Asia %oney 2**, poll

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C2mm23101#4 0r 3#3 1! MCE.

8old7 8old %7 8old &NI7 Sil2er7 Sil2er %7 Sil2er &NI Castor Seeds7 Soy Seeds7 Castor Oil7 Refined Soy Oil7 Soymeal7 R0 "almolein7 Crude "alm Oil7 8roundnut Oil7 %ustard Seed7 %ustard Seed Oil7 Cottonseed Oilca4e7 Cottonseed "epper7 Red Chilli7 Neera7 Turmeric Steel !ong7 Steel Flat7 Copper7 Nic4el7 Tin Oapas7 !ong Staple Cotton7 %edium Staple Cotton Chana7 :rad7 Dello3 "eas7 Tur Rice7 0asmati Rice7 5heat7 %ai9e7 Sar1ati Rice Crude Oil Ru11er7 8uar Seed7 8ur7 8uargum 0andhani7 8uargum7 Cashe3 Oernel7 8uarseed 0andhani

C2mm23101#4 0r 3#3 1! NCDEE.

Agro "roducts Ara1ica Coffee Cashe3 Castor Seed Chana Chilli Common Ra3 Rice Common "ar1oiled Rice Crude "alm Oil Cotton Seed Oilca4e E6peller %ustard Oil 8rade A "ar1oiled Rice 8rade A Ra3 Rice 8uar gum 8uar Seeds 8ur Neera Nute sac4ing 1ags !emon Tur !ong Staple Cotton %aharashtra !al Tur %edium Staple Cotton %ul1erry 8reen Cocoons %ul1erry Ra3 Sil4 %ustard Seed (/

 "epper Ra3 Nute R0 "almolein Refined Soy Oil Ro1usta Coffee Ru11er Sesame Seeds Soya1ean Dello3 Soy1ean %eal Sugar Turmeric :rad 5heat Dello3 "eas Dello3 Red %ai9e 0ase %etals %ild Steel Ingots "recious %etals 8old Sil2er

()

INTERPRETATION OF DATA

((

1) OCC&PATION
Frequency Businessmen Profession etired !ouse "ife %m&loyees (t)ers *otal 13 11 8 # ' 4 #0 Percent 26.0 22.0 16.0 10.0 18.0 8.0 100.0 Valid Percent 26.0 22.0 16.0 10.0 18.0 8.0 100.0 Cumulative Percent 26.0 48.0 64.0 $4.0 '2.0 100.0

GRAPH

ANALYSIS From the a1o2e graph it has 1een o1ser2ed that out of (* clients 2,J are 0usinessmen7 22J are "rofessional7 ',J are Retired clients7 '*J are &ouse 3i2es7 '.J are Employees and .J are others i$e$ students$ (,

2) W51-5 -2mm23101#4 32 >2. /r#7#rr#3 02 1!8#40 1! 05# -2mm23101#4F

P %F% %+ C(,,(+-*-%. Frequency Valid /old .ilver Crudeoilo Co&&er ,ai0e C)ana C)illy *otal 1$ 8 13 3 # 2 2 #0 Percent 34.0 16.0 26.0 6.0 10.0 4.0 4.0 100.0 Valid Cumulative Percent Percent 34.0 34.0 16.0 #0.0 26.0 $6.0 6.0 82.0 10.0 '2.0 4.0 '6.0 4.0 100.0 100.0

ANALYSIS

(-

From the a1o2e graph it has 1een o1ser2ed that /)J in2estors are in2esting in the 8old7 ',J are in the Sil2er7 2,J are in the Crude oil7 ,J clients are in the copper7 '*J are in the %ai9e7 )Jare in the Chana and )J in2estors are in2esting in the Chilly commodities$

() S1!-# 52@ 92!" r# >2. 0r 3# @105 05# -2mm23101#4F

TRADING Frequency less t)an 1 year 16 1et.1 23 years 24 a1ove 3 years 10 *otal #0 Percent Valid Percent 32.0 32.0 48.0 48.0 20.0 20.0 100.0 100.0 Cumulative Percent 32.0 80.0 100.0

Valid

ANALYSIS

(.

From the a1o2e graph it has 1een o1ser2ed that /2J clients from less than one year7 ).J clients for 1et3een 2 and / years and rest 2*J in2estors are from the a1o2e / years in2esting in the commodities mar4et$

)< D2 >2. /r#7#r 02 1!8#40 1! 05# 205#r -2mm23101#4F

Frequenc Percent y Valid 3es 4o *otal 1' 31 #0 38.0 62.0 100.0 Valid Cumulativ Percent e Percent 38.0 62.0 100.0 38.0 100.0

(+

ANALYSIS
5e ha2e concluded that /.J in2estors are going to in2est in the other commodities and remaining ,2J people are not in2esting in the other commodities in the &ydera1ad city$

*) I7 Y#4 @51-5 C2mm23101#4F

Frequency Percent 5inc 6eera 11 8 22.0 16.0

Valid Percent 22.0 16.0

Cumulative Percent 22.0 38.0

,*

4ot invested *otal

31 #0

62.0 100.0

62.0 100.0

100.0

ANALYSIS
In the a1o2e analysis out of '+ people '' =22J< in2estors are in2esting in the Uinc and rest . people =',J< in2estors are in2esting in the Neera$ And remaining /' clients =,2J< clients are not in2esting in the other commodities$

)) W5 0 @2.93 A# >2.r r146 //#010# 72r 1!8#40#3 1! 05# -2mm23101#4F

Frequency Percent 7o" is8 11 22.0

Valid Percent 22.0

Cumulativ e Percent 22.0

,'

,edium is8 !i9) is8 *otal

23 16 #0

46.0 32.0 100.0

46.0 32.0 100.0

68.0 100.0

ANALYSIS
The a1o2e graph indicates the Ris4 appetite for in2esting in the commodities mar4et$ &ere out of (* samples 22J in2estors see4ing lo3 ris47 ),J are medium ris4 and /2J in2estors ha2e the high@ris4 period$ ') R# 42!4 !3 R 01!"4 72r 05# 1!8#40m#!0 3#-1412!4
(a) RETURN Frequency Percent ,a:imum ;vera9e 26 20 #2.0 40.0 Valid Percent #2.0 40.0 Cumulativ e Percent #2.0 '2.0

,2

,inimum *otal

4 #0

8.0 100.0

8.0 100.0

100.0

ANALYSIS
From the a1o2e graph (2J in2estors are in2esting in the commodities mar4et to get a high return7 )*J are medium return and rest .J in2estors are in2est for the purpose of lo3 return$

(A) TRANSPERANCY
FREQUENCY Frequency Percent Valid Percent 44.0 Cumulativ e Percent 44.0

Valid

,a:imum

22

44.0

,/

;vera9e ,inimum *otal

23 # #0

46.0 10.0 100.0

46.0 10.0 100.0

'0.0 100.0

ANALYSIS From the a1o2e graph7 out of (* samples ))J in2estors? intention is for the high transparency le2el 3hen in2esting in the commodities mar4et7 ),J in2estors in2esting for medium transparency le2el and a1out '*J in2estors are in2esting for the minimum transparency le2el$

(c) LIQUIDITY Frequency ,a:imum ;vera9e 2# 22 Percent #0.0 44.0 Valid Cumulative Percent Percent #0.0 44.0 #0.0 '4.0

,)

,inimum *otal

3 #0

6.0 100.0

6.0 100.0

100.0

ANALYSIS
From the a1o2e graph7 out of (* samples (*J people in2esting in the commodities for high li>uidity purpose7 ))J are medium li>uidity and rest ,J in2estors are in2esting in the commodities for minimum li>uidity$

(d) SAFETY Frequency Percent Valid Percent 44.0 48.0 8.0 Cumulativ e Percent 44.0 '2.0 100.0

,a:imum ;vera9e ,inimum

22 24 4

44.0 48.0 8.0

,(

*otal

#0

100.0

100.0

fS

ANALYSIS From the a1o2e graph out of (* samples ))J in2estors are in2esting for the safety purpose7 ).J are medium safety and rest .J are in2esting to get a minimum safety$

,) A!!. 9 1!8#40m#!0 1! 05# -2mm23101#4

Frequency 7ess t)an 2 7a8) # Percent 12.0 Valid Percent 10.0 Cumulative Percent 10.0

,,

2 to # 7a8) # to 8 la8) *otal

2' 16 #0

#6.0 32.0 100.0

#8.0 32.0 100.0

68.0 100.0

ANALYSIS In the a1o2e graph out (* in2estors '2J people are less than 2 la4h in2esting in the commodities mar4et annually$ (,J people are in2esting 1et3een 2 to ( la4h annually and rest /2J in2estors are in2esting a1o2e .la4h annually in the commodities mar4et and in the &ydera1ad city$

9) S#r81-#4 #:-#/0#3 A> 05# 4#r81-# /r2813#r

Frequency Percent Valid Percent Cumulative Percent

,-

esearc)e d -nformation 7ess Bro8era9e /ood .ervice *otal

2$

#4.0

#4.0

#4.0

1# 8 #0

30.0 16.0 100.0

30.0 16.0 100.0

84.0 100.0

ANALYSIS From the a1o2e graph represents that7 ()J clients are e6pected to more researched information7 /*J are e6pected !ess 1ro4erage and rest ',J are e6pected good ser2ice from the ser2ice pro2ider$

10) C2!4.90 A#72r# 1!8#40m#!0

Frequency Percent Valid Percent Cumulative Percent

,.

ely on your o"n Financial Consultants Business C)annels 4e"s &a&ers< ,a9a0ines *otal

12 24

24.0 48.0

24.0 48.0

24.0 $2.0

# '

10.0 18.0

10.0 18.0

82.0 100.0

#0

100.0

100.0

ANALYSIS The a1o2e graph represents7 a1out ).J in2estors are consult to the financial consultant 1efore in2estment in the commodities7 2)J are in2ested rely on their o3n decisions7 '*J in2estors in2esting on the 1asis of 1usiness channels and rest '.J people are consult ne3s papers or maga9ines 1efore in2esting in the commodities mar4et$

,+

FINDINGSH S&GGESTIONSH CONCL&SIONH AND K&ETIONNARIE

-*

FINDINGS
The findings from the sur2ey analysis can 1e summari9ed as follo3s# From the analysis7 out of (* samples 2,J are 1usiness people and in2esting in the commodities$ /2J in2estors =clients< preferred to in2est in the gold and 2.J crude oil respecti2ely$ %ost of the in2estors i$e$ ).J trading 3ith commodities since from the last ' to / years$ ),J clients are interested to 1ear the medium ris4 in the &ydera1ad city$ From the sur2ey analysis7 (2J in2estors are in2esting for high return7 ))J in2estors for transparency7 (*J for high li>uidity and ).J in2estors are in2esting in commodities for their safety$ The (,J in2estors are in2esting Rs$ 2 to ( la4h annually in the commodities$ From the sur2ey analysis7 ()J clients are e6pected

-'

SUGGESTIONS
It is seen that most of the in2estors are 1usinessmen and professionals$ So company has to target these 1usinessmen and professionals$ And ma4e a3areness of the commodities so that it attracts in2estors$ %ajority of the respondents prefer to amounts in2est ranging 1et3een 2 to / lac4s 3ith medium ris4 so great potential mar4et for medium returns in &ydera1ad so company should concentrate on it$ $

&ydera1ad in2estors are see4ing to in2est in gold and crude oil 1ecause of medium ris4 so company create a3areness 3ithin grain merchants and other traders to in2est in agri commodities$ Transparency and returns is the 1asic parameters considered 1y in2estors 3hile delieng 3ith 1ro4ers so company maintain transference and possi1le as much as possi1le returns to satisfy in2estors$ The company should pro2ide update information of the commodity mar4et$ It

3ill 1e help full to create good3ill in minds of in2estors and attract ne3 in2estors 3ith less 1ro4erage$

-2

CONCLUSION
This project report entitled 3ith I !8#402r4 Pr#7#r#!-#4 T2@ r34 C2mm23101#4 M r6#0 undergone on the stoc4 1ro4ing concern is not merely a 3or4 of the project7 1ut a 1rief 4no3ledge and e6perience of that ho3 to trade in the stoc4 mar4et$ The research underta4en has 1rought into the light of the follo3ing conclusions$ The preferences to3ards commodities in &ydera1ad7 for gold and crude oil are high 1ut for some other commodities it is too lo3$ In the &ydera1ad city the in2estors? in2estment in the commodities is 2ery lo3$

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$I$LOGRAPHY

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BIBLIOGRAPHY

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