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1.1 Introduction
1.2 Statement of the Problem
1.3 Need for the Study
1.4 Scope of the Study
1.5 Objectives of the Study
1.6 Research Methodology
1.6.1 Data Collection:
1.6.2 Primary Data:
1.6.3 Secondary Data:
1.6.4 Statistical Tools Used:
1.6.5 Period of Study
1.7 Limitations of the Study
1.8 Chapeterisation
2.1 Introduction to the Industry


2.2 History and Growth of Stock Exchanges In India

2.3 Evolution of Stock Exchanges in India
2.4 Recent News of Stock Exchanges in India
2.5 Introduction to the Company
2.6 Company Mission, Vision and Objectives
2.7 Organization Structure and Board of Directors
2.8 Types Products of Products and Services Offered By
2.9 Achievements
2.10 Future Projects
3.1 Subject Matter Of Stock Exchange
3.2 Books Referred For The Study
3.3 Case Referred During the Study
3.4 Journals Referred For the Study
3.5 Wed Sites Visited For Reference and Collecting Data
5.1 Findings
5.2 Suggestions
5.3 Conclusion


Risk and Return analysis plays a key role in most individual decision making process.
every investor wants to avoid risk and maximize return. in general, risk and return go hand.
If an investor wishes to earn higher returns than the investor must appreciate that this will
only be achieved by accepting a commensurate increase in risk.
based on risk and return analysis, high risk gives high returns with low risk gives to low
return, based on this concept in banking and automobile sector high risk gives low return,
and in information technology, fast moving consumer goods, pharmaceutical sector low
risk gives high return. Alpha stock is positive and the companies are independent to market
return and have a profitable return.





Investment is the employment of funds with the aim of achieving additional income
or growth in value. The essential quality of an investment is that it involves waiting for a
reward. It involves the commitment of resources which have been saved or put away from
current consumption in the hope that some benefits will accrue in future.

The term

Investment does not appear to be as simple as it has been defined. Investment has been
further categorized by financial experts and economists. It has also often been confused with
the term speculation. The following discussion will give an explanation of the various ways
in which investment is related or differentiated from the financial and economic sense and
how speculation differs from investment.

However, it must be clearly established that

investment involves long-term commitment.

A major purpose of investment is to set a return of income on the funds invested. On a bond
an investor expects to receive interest. On a stock, dividends may be anticipated. The
investor may expect capital gains from some investments and rental income from house


In the investing world, the dictionary definition of risk is the chance that an
investments actual return will be different than expected. Technically, this is measured in
statistics by Standard Deviation. Risk means you have the possibility of losing some, or even
all, of our original investment.
Risk consists of 2 components:
1. Systematic risk (uncontrollable risk) non-diversifiable risk
2. Unsystematic risk (controllable risk) diversifiable risk

Systematic Risk:
The risk that affects the entire market, the factors are beyond the control of the
corporate and the investor. They cannot be avoided by the investor. It is sub-divided into.
1. Market risk
2. Interest rate risk
3. Purchase power risk
Unsystematic Risk of Diversifiable Risk:
It is unique to the firm or industry. It stems from managerial inefficiency,
technological changes, consumer preferences, labour problems etc. The magnitude and
nature differs from firm to firm, industry to industry.
It can be classified into 2 types
1) Business risk

Internal risk

Fluctuations in sales

Research and development


Personal management

External risk (P,E,S,T factors)

2) Financial risk
It is associated with the capital structure of the company.


The problem undertaken to study in the present project work is to calculate returns
and risk associated with different stocks listed on NSE Stock Exchange. Returns and Risk
are calculated to study the price movements in the stock market. After doing this project one
can make decisions regarding the investment in which company one can expect.


Stock Markets have existed in India for a very long time yet the professionals in the
field of finance talking negatively about these instruments. The reason why I bring it up
again is that it is very important to understand what the old system was verse the new the old
system were based on trust. They were closed group system and hence deviation from truly
competitive markets. Such closed groups are vulnerable to problem when the demand of the
economy reach beyond the capacity of the group and group has expended without open and
transparent criteria for entry, the net work of trust gets disrupted, with the result that the
system is disrupted by frauds.


On the other hand, the modern market place of Stock Markets, having well developed risk
management, transparent rules for entry and stringent regulation, is faceless. That the old
type system had to transform into a new is definitely clear they have played a very important
role in the past. In is merely that had to modern markets to keep up with the demand of the


The present study has been undertaken to observe the risk and returns associated with few
selected stocks. The scope of the study consists of 15 Company stocks from different sectors
like infrastructure, Pharmacy, Automobile, Power, Public Sector and Energy etc., the scope of
the study is confined to 50 Companies.


1) The main objective of this project is to analyze the price fluctuations of various
2) To observe the relation between Returns and Risk in the daily fluctuations in prices.
3) To evaluate the price movements of the selected stocks based on fundamental



1.6.1 Data Collection:

In this study, we obtain the data from interviewing the respondent on the issues of interest,
various websites, journals, newspapers, books, etc and documented information from annual
report had been used to explores various alternatives regarding equity investment

1.6.2 Primary Data:

Primary data is the one which is collected specifically for the purpose of the project, and can
be obtained from various people working in the organization. For this study the primary data
was collected from following sources.
Discussion with manager.

1.6.3 Secondary Data:

It refers to the statistical material which is not originated by the investigator himself but
obtained from someone else's records, or when Primary data is utilized for any other purpose
at some subsequent enquiry it is termed as Secondary data. However, it plays a significant


role in the project. For this study the secondary data was collected from the following
Books related to risk and returns management
Websites related to risk and returns management
documented information from annual report of this company

1.6.4 Statistical Tools Used:

Project has been done using selective technical tools .This research study has been based on
descriptive and explanative and exploratory method. It describes securities market in India,
and explains risk and returns involved in equity investment. Finally it explores various
alternatives regarding equity investment.

1.6.5 Period of Study

Study is restricted for lost 3 years (2012-2015).


1) This project report data collected from secondary sources only.

2) This project analysis report may not be applicable in all equity markets.
3) Project took only 15 companies of NSE for equity analysis. It will not applicable to
total NSES Nifty Index.
4) The accuracy of the study is based on the accuracy of the data presented in the NSE


5) Detailed study of topic was not possible due to limited size of the project. The time
taken for the study is limited.


Chapter 1
It consists of Introduction, Statement of the Problem, Need for the Study, Scope of
the Study, Objective of the Study, Research Methodology and Limitations of the Study.
Chapter 2
It consists of industry Profile and Company Profile of the Organization.
Chapter 3
It consists of theoretical framework
Chapter 4
It represents the Data Analysis and Interpretation.
Chapter 5
It consists of findings, Suggestions, and Conclusion.





Stock exchange is an organized market place where securities are traded. These securities are
issued by the government, semi-government bodies, public sector undertakings and
companies for borrowing funds and raising resources.
Securities are defined as any monetary claims (promissory notes or I.O.U) and also include
shares, debentures, bonds and etc., if these securities are marketable as in the case of the
government stock, they are transferable by endorsement and alike movable property. They are
tradable on the stock exchange. So, are the case shares of companies.
Under the Securities Contract Regulation Act of 1956, securities trading is regulated
by the Central Government and such trading can take place only in stock exchanges
recognized by the government under this Act. As referred to earlier there are at present 23
such recognized stock exchanges in India.
Of these, major stock exchanges, like Bombay Stock Exchange, National Stock Exchange,
Inter-Connected Stock Exchange, Calcutta, Delhi, Chennai, Hyderabad and Bangalore etc.
are permanently recognized while a few are temporarily recognized.
The above act has also laid down that trading in approved contract should be done through
registered members of the exchange. As per the rules made under the above act, trading in
securities permitted to be traded would be in the normal trading hours (10 A.M to 3.30 P.M)
on working days in the trading ring, as specified for trading purpose.


Contracts approved to be traded are the following:

Spot delivery deals are for deliveries of shares on the same day or the next day as
the payment is made.

Hand deliveries deals for delivering shares within a period of 7 to 14 days from
the date of contract.

Delivery through clearing for delivering shares with in a period of two months
from the date of the contract, which is now reduce to 15 days.(Reduced to 2 days
in demat trading)

Special Delivery deals for delivering of shares for specified longer periods as may
be approved by the governing board of the stock exchange.

Except in those deals meant for delivery on spot basis, all the rest are to be put through by the
registered brokers of a stock exchange. The securities contracts (Regulation) rules of 1957
laid down the condition for such trading, the trading hours, rules of trading, settlement of
disputes, etc. as between the members and of the members with reference to their clients.


The origin of the Stock Exchanges in India can be traced back to the later half of 19th
century. After the American Civil War (1860-61) due to the share mania of the public, the
number of brokers dealing in shares increased.
The brokers organized an informal association in Mumbai named The Native Stock and
Share Brokers Association in 1875.later evolved as Bombay stock exchange. Increased
activity in trade and commerce during the First World War and Second World War resulted in
an increase in the stock trading.


The Growth of Stock Exchanges suffered a set after the end of World War. Worldwide
depression affected those most of the Stock Exchanges in the early stages had a speculative
nature of working without technical strength. After independence, government took keen
interest to regulate the speculative nature of stock exchange working. In that direction,
securities and Contract Regulation Act 1956 was passed, this gave powers to Central
Government to regulate the stock exchanges. Further to develop secondary markets in the
country, stock exchanges established at Mumbai, Chennai, Delhi, Hyderabad, Ahmedabad
and Indore.
The Bangalore Stock Exchange was recognized in 1963. At present there are 23 Stock
Exchanges. Till recent past, floor trading took place in all Stock Exchanges. In the floor
trading system, the trade takes place through open outcry system during the official trading
hours. Trading posts are assigned for different securities whereby and sell activities of
securities took place.
This system needs a face to face contact among the traders and restricts the trading
volume. The speed of the new information reflected on the prices was rather than the
investors. The Setting up of NSE and OTCEI (Over the counter exchange of India with the
screen based trading facility resulted in more and more Sock exchanges turning towards the
computer based trading.
BSE introduced the screen based trading system in 1995, which known as BOLT (Bombay on
line Trading. System) Madras Stock Exchange introduced Automated Network Trading
System (MANTRA) on October 7, 1996 Apart from Bombay Stock Exchanges have
introduced screen based trading.



Any attempt at raising the standard of living of the masses must address itself to the task of
producing the right quantity of the right types of goods and have them available for
consumption at the right time. This requires large-scale production through coordination of
activities of hundreds of people under the same roof even when the product is the simplest to
This, however, calls for raising vast amounts of financial resources for the purpose of
acquiring land, buildings and equipments, besides purchasing raw materials and employing
labour. No one individual or a small group of individuals is rich enough to provide all the
capital required by modern business enterprise and savings of hundreds, if not thousands, of
people must be mobilized.
The corporate form of organization is well adapted to the task of raising capital from many
people. This is done by issuing or offering for sale at cash, different types of securities, that
is, shares and bonds, which offer to individual investors a means of productively employing
capital/savings suited to his/her needs and temperament.
The need for offering for sale different types of securities is obvious. Some people may desire
safety of the amount they have invested and a regular income from their investment. To them
the corporation or company may offer debenture bonds- a certificate issued under the seal of
the company promising a refund of the loan on a specified date and payment of interest at
prescribed intervals.
Other investors may be willing to commit their savings for an indefinite period of time and to
assume greater risk while still desiring safety of capital and stability of income. To them the
corporation will sell preference shares. Still other investors may be willing to shoulder the
business risk that goes along with the ownership of the business in the hope that the profit
realized would be large enough to compensate the greater risk they are assuming.


But no one will buy these securities unless there exists an organized market where the holders
can dispose of them, should the need arise, and new investors can purchase them. Over the
years, such organized markets have come into existence in all democratic and capitalistic
countries including India.
Such a market is called stock market or a stock exchange in English speaking countries and a
'brouse' in continental Europe. There is, obviously, no need for stock exchange in
Communist countries since in such countries all the productive organizations are owned by
the government.
Organised stock exchange in India are of recent origin. As late as 1933 there were only three
stock exchanges one each at Ahmadabad, Bombay and Calcutta, but trading in securities
was in vogue much prior to that year.
Of course, no one can tell when the first transaction took place, however, it is generally
agreed that business in securities had begun as early as the concluding years of the 18th
century, that is, between the years 1790 and 1800 A.D.


Delivery on National Commodity and Derivative Exchange doubles in May
The spurt in delivery shows the depth in trade through future platform, and helps in
convergence of spot market, NCDEX said in a statement here.
Bank Nifty indexs options contracts to be available for trading on National Stock
Bank Nifty, which is highly volatile index in nature compared to Nifty, the weekly options
contracts will give big boost to options players to trade for intraday.
National Stock Exchange of India Limited and NBSE to start financial literacy course in
More than 60 schools under NBSE have registered with the Board to make the course
compulsory for all students of class IX.


Axis Bank launches India's first certified green bond at London Stock Exchange
One of India's leading private sector capital markets banks opened trading at the LSE with the
bond, which is certified by the Climate Bonds Standards Board and raised USD 500 million.
London Stock Exchange says Deutsche Boerse merger could result in 1,250 job cuts
LSE, which agreed to merge with Deutsche Boerse, said it expects to achieve those synergies
in the fifth year after completion of the deal.
National Stock Exchange may announce re-balancing of Nifty index
Analysts expect possible exclusion of Punjab National Bank, Vedanta, Hindalco and Cairn
India from Nifty, as these stocks have underperformed the benchmark index.
National Commodity & Derivatives Exchange declares special margin of 25% on chana
With stringent surveillance mechanisms in place, NCDEX continues to remain the most
trusted platform for transparent price discovery for agricultural commodities.
ICE backs away from bid for London Stock Exchange
Intercontinental Exchange Inc. reported better-than-expected earnings for its first quarter and
said it would pay its dividend next month.
Mumbai-based Bar Stock Exchange expands outlets to other cities, will foray into
London and Singapore too
The self-funded company will open 5,000 sq. ft. outlets in Pune, New Delhi and Bengaluru.
Setting up each outlet will cost about Rs 2.5 crore, an amount that will almost double abroad.
Trading hours on stock exchanges may stretch upto to 5 PM if SEBI accepts proposal of
If MSEI decides to give investors more time to trade, NSE and BSE will be forced to follow
suit. MSEIs plan to stretch trading hours is part of its strategy to revive the exchange.



Indiabulls Securities Ltd is engag. in the busine. of Internet based trading and is registered
with SEBI as a stockbroker, trading and clearing member of NSE, member of B. and as a
depositary participant with National Securities Depository Limited CNSDL") and Central
Depository Services (India) Limited CCDSL"). ISL is also a member of the National
Securities Clearing Corporation Limited.
Indiabulls Securities Limited (ISL) was incorporated as GPF Securities Private Limited on
June 9, 1995.
The name of the company was changed to Orbis Securities Private Limit. on December 15,
1995 to change the profile of the company and subsequently due to the conversion of the
company into a public limit. company; the name was further changed to Orbis Securities
Limited on January 5, 2004.The name of the company was again changed to Indiabulls
Securities Limit. on February 16, 2004 so as to capitalize on the brand image of the term
"Indiabulls" in the company name. ISL is a corporate member of capital market & derivative
segment of The National Stock Exchange of India Ltd.
Trading With Indiabulls
This section will introduce us about the process and instruments used to help a customer or a
client to trade with Indiabulls securities. This process is almost similar to any other trading
firm but there will be some difference in the cost of brokerage commission.


It is a process by which a customer is given facility to buy and sell share this buying and
selling can only be done through some broker and this is where Indiabulls help its customer.
A customer willing to trade with any brokerage house need to have a demat account, trading
account and saving account with a brokerage firm. Anyone having following document can
open all the above mentioned account and can start trading.
Document Required

3 photographs ( signed across)

Photo Identification Proof - any of the following - Voter ID/Driving
Address Proof any of the following - Voter 1D/Driving License/ Passport/_Bank
statement or pass book sealed and attestation by bank official/ BSNL landline bill.
A crossed Cheque favoring "India bulls Securities Ltd". of the required
amount. The amount for Demat as well as trading will be Rs. 900/ -(free Demat
+900 Trading Account) the minimum amount being Rs. 900 a cheque can be
given for a larger amount.
Copy of PAN Card is mandatory.
Registration Kit
CDSL Demat Kit
Bank and address proof declaration. (Master undertaking)
PAN name discrepancy form

These documents may not be consumer friendly but it is to avoid illegal transaction and to
prevent block money this ensures that money invested is account.

Business Model & Operations of Indiabulls Securities Ltd

The three distinct internal business segments are:


Online business.

Offline business

Other Sales
Online business: serving clients primarily through an Internet based relationship targeted
towards clients who vale anytime, anywhere access and can be serviced at low incremental
costs. The Online sales force .1Is all products and services and follows the relationship
manager model.
Offline business: serving clients primarily through an office based relationship targeted
towards clients who else physical interaction and are typically larger accounts. The Offline
Sal. Force .1Is all products and services and follows the relationship manager model.
The Institutional business serving clients such as mutual funds and pension funds is
considered. Part of the offline business due to largely similar client servicing and channel
needs as required for high net worth clients. Indiabulls Securities Limit. has established
relationships with some large institutional players in India and is qualified broker for
Equities, F8,0 and Debt markets for 145 such institutional clients.
Other Sal: includes insurance, research services and other offerings

Basic Requirement for doing Trading

Trading requires Opening a Demat account. Demat refers to a dematerialized account.


You need to open a Demat account if you want to buy or sell stocks. So it is just like a bank
account where actual money is replaced by shares. We need to approach the Depository
Participants (DP, they are like bank branches), to open Demat account.
A depository is a place where the stocks of investors are held in electronic form.
The depository has agents who are called depository participants (DPs).
Think of it like a bank. The head office where all the technology rests and details of all
accounts held is like the depository. And the DPs are the branches that cater to individuals.
There are only two depositories in India

The National Securities Depository Ltd (NSDL) and the

Central Depository Services Ltd (CDSL).



Rapidly increase the number of client relationships by providing a broad array of products
offering to emerge as a clear market leader.
To be the largest and most profitable financial services organization in Indian market and
become one stop shop for all non banking financial products and services for the retail
Aim to be among the top 3 players in existing products within next 3 years.
No New Products
Focus on gaining size and scale in existing core products.
No Capital Market Fund Raising
All businesses are well funded to achieve growth and size. Avoiding excessive debt
from the capital market.
FY 2017/2018, target of US $ 1.4 bn in cash generation from 3 companies (real estate,
finance and power).



The organizational structure of Indiabulls is Functional, which consist of several departments.

Functioning Online: serving clients primarily through an Internet based relationship targeted
towards clients who vale anytime, anywhere access and can be serviced at low incremental
Functioning Offline: serving clients primarily through an office based relationship targeted
towards clients who value physical interaction.
Online & offline business consist of following departments

Operations & Service quality
Corporate affairs
Human resources
Corporate communi.ons

Organization Structure


Board of Directors:


Mr. Sameer Gehlaut

Chairman & CEO

Gagan Banga

Executive Director

Rajiv Rattan


Shamsher Singh


Aishwarya Katoch


Karan Singh


Prem Prakash Mird


Saurabh K Mittal

Executive Director

Amit Jain

Company Secretary


Indiabulls Ventures Limited (Formerly Indiabulls Securities Limited) is the pioneer in Retail
Broking Industry having a pan India presence and providing services to a customer base
exceeding half a million. Indiabulls Ventures is in the business of providing securities broking
and advisory services and is a corporate member of capital market, wholesale debt market
and derivative segment of NSE and of the capital market and derivative segment of BSE.
Indiabulls Ventures is a brokerage house to be assigned the highest rating BQ-1 by CRISIL.
The company through various types of brokerage accounts provides product and services
related to purchase and sale of securities listed in NSE and BSE. It also provides depository
services, equity research services, mutual fund, IPO distribution to its clients. The company
provides these services through on-line and off-line distribution channel.


Power Indiabulls (PIB)

is the advanced online trading platform from Indiabulls Ventures Limited (Formerly
Indiabulls Securities Limited). PIB provides the best in the class internet trading features and
delivers a seamless and rich online trading experience for its users. PIB comes with a whole
host of online features for the internet trading users ranging from real-time stock prices, to
live trading reports, charting, News Room. PIB provides an integrated online trading platform
for the internet trading community to invest in equity, F&O, Online IPOs and base their
decision on sound fundamental research and technical analysis. It also provides various kinds
of trading reports, each developed to cater to internet trading users distinct needs.

With whole host of advanced online trading features, PIB aims to fulfill the needs of every
genre of investors & help them gain profits in every possible way

Indiabulls Signature Account

With Indiabulls Signature account you will always remain on top of your investments. It
provides you the platform to trade in Equity and Derivatives. With an unmatched service and
nationwide presence, the India bulls Signature account comes bundled with a variety of
exclusive features.

Ease of trading With Indiabulls Signature account you have the flexibility to place
your orders either by logging on the website, calling at the branch or walking in the

Dedicated Service Branch and Relationship Manager: You can get in touch with
your Relationship Manager and Service Branch for all your trading related requirements.


Power Indiabulls (PIB): You can trade smarter and faster using the Power Indiabulls
application. Access the broad spectrum of sophisticated trading tools and get an edge in
the stock markets.

Online Payment Gateways: Use our online payment gateways facility and get
instant credit in your Trading Account. We currently provide online gateway payment
facility with five major banks HDFC, ICICI, AXIS, Yes Bank and IDBI.

IPOs Indiabulls provides you the flexibility to apply in ongoing IPOs through either
online or offline channels. For applying online, you do not need to fill tedious forms and
write cheques. You can apply conveniently in IPOs from the comfort of your home /
office through our Website/PIB. For applying offline, you can contact your Relationship
Manager/ Service Branch.

Portfolio Tracker: You can track your investments online through our portfolio
tracker functionality. You can conveniently track the daily movement, notional / booked
profits and losses in your portfolio.

Equity Analysis Report A qualified and dedicated team of equity analysts at

Indiabulls publishes various research reports. You can view these reports to gain insight
into the companies of your interest.

News Room: The News Room provides real-time news from stock-markets,
corporate sector, economy and other segments that have a bearing on the market

Market Statistics: This functionality facilitates tracking the market trend by

providing you real time data on top gainers, top losers, volume toppers and most volatile

Mobile Power Indiabulls (MPIB): MPIB is a mobile-phone based application,

developed exclusively for Indiabulls customers. Using MPIB, you can view the live
market rates of your favorite stocks and futures contracts on your mobile device. Thus
with MPIB, you can always remain connected with the market, even on the move.

Electronic Contract Notes on Email: This facility enables you to get digitally signed
Electronic Contract Notes on email within 24 hours of executing trades in your Trading


Introducing Intraday Futures: Intraday Futures Product enables you to take

intraday positions in various future contracts at lower margins. These positions have to be
necessarily squared-off at the day end.
Comprehensive Reports: Track your financials and portfolio efficiently through

various reports like Ledger Statements, Account Summary, Net Portfolio Report, Daily
Transaction Report, Daily Transaction report etc.
Currency Derivatives: Trade in Currency Derivatives which are similar in nature to

Stock or Index Futures contracts. Currency Future Contracts, with INR: USD exchange
rate as the underlying, are available with a monthly expiry.
Depository Services
Indiabulls is a depository participant with the National Securities Depository Limited and
Central Depository Services (India) Limited for trading and settlement of dematerialised
shares. Indiabulls performs clearing services for all securities transactions through its
accounts. We offer depository services to create a seamless transaction platform execute
trades through Indiabulls Ventures Limited (Formerly Indiabulls Securities Limited) and
settle these transactions through the Indiabulls Depository Services. Indiabulls Depository
Services is part of our value added services for our clients that create multiple interfaces with
the client and provide for a solution that takes care of all your needs.
Currency Derivatives
Indiabulls offers trading in the Currency Derivatives Segment in National Stock Exchange
Currency Derivatives are similar in nature to Stock Futures & Option contracts. Currency
Derivatives Contracts (USD-INR, EUR-INR, GBP-INR and JPY-INR) at exchange rate as the
underlying are available for trading with a monthly expiry. At any given time, Currency
Derivatives Contracts are available for trading for the next 12 months expiry for futures
whereas 3 months expiry and 1 quarterly expiry for Options. The Mark-to-Market for


Currency Derivatives is settled on a daily basis in a manner similar to Equity Futures &
The market for Currency Derivatives is open from 9 A.M to 5 P.M (Monday to Friday).
Registration for Currency Derivatives Segment (CDS) and Online Trading Facility You can
initiate trading in Currency derivatives Segment by following a simple registration procedure.
Indiabulls also offers you the convenience of Online Trading in Currency Derivatives. For
registration in CDS and availing Online Trading facility, please contact your Service Branch /
Relationship Manager.
IPO Online
For various reasons, we often miss the opportunity of subscribing to anIPO. It can either be
because we could not procure the application form or we did not have the time to fill up the
form and submit it. The most important benefit of the 'ONLINE IPO facility offered by
Indiabulls Ventures Limited (Formerly Indiabulls Securities Limited). is the convenience in
submission of applications from anywhere breaking the limitations of time and geography.
You dont need to submit the application in paper form, or write a cheque or go to submit it
Now you have the convenience at your fingertip. You can quickly and seamlessly apply to the
latest public offerings with just a few clicks. Indiabulls Ventures Ltd. offers ONLINE IPO
facility to its registered trading customers at absolutely no cost.
To use theONLINE IPO feature, you need to fulfill the following criteria :

You must be registered for internet Trading with Indiabulls Ventures Ltd.
You must have a demat account with Indiabulls Ventures Ltd.
You must have signed the POA agreement for OnlineIPOs.
You must have access to Net Banking facility with those banks with which Indiabulls
is providing Payment Gateways. Currently, we are providing payment gateways for


To sign the agreement for online IPO facility, please get in touch with your relationship
manager or branch

Indiabulls Equity Analysis

ndiabulls Equity Analysis complements its equity broking and advisory services with high
quality comprehensive report which can be accessed online. Research report assess the
potential strength and investment risk by doing in-depth and exhaustive analysis of
operational and financial performance of company, Peer group analysis, present Industry
scenario using advanced and sophisticated forecasting tools and models. These research
reports identify, examine and distill attractive investment opportunities to help you in
building and maintaining your ideal portfolio.
Salient features of Indiabulls Equity Analysis:

Covers report of more than 540 company

Updated on a daily basis
Scorecard on Fundamentals, Valuations and risk
Peer Analysis
Valuation of potential growth
Industry Scenario
Expansion plan
Details of Mergers and Acquisitions

These reports are available to clients without any additional cost. If you are not a client and
wish to view a sample report, please share your details with us.

2.9 Achievements
1) Indiabulls was conferred the status of a Business Superbrand by The Brand Council,
Superbrands India in 2008.[30]


2) Indiabulls Housing Finance was awarded the Presidential Award for The Fastest
Growing Company' by NAREDCO in 2014.[31]
3) IBHFL was awarded "Best Employer Brand", June 2012 for its human resource
practice by The Institute of Public Enterprises.[32]
4) Indiabulls Housing was awarded the Best HFC of the year, 2013 at ASSOCHAM Real
Estate Excellence Awards.[33]
5) Indiabulls Real Estate project, Indiabulls Greens, Chennai won the Construction
Industry Award 2014 for excellence in Gated Community Projects.[34]
6) Indiabulls Real Estate project, Indiabulls Golf City, Mumbai was awarded by
International Property Awards as the Best Golf Development in India for Asia Pacific
7) Indiabulls Real Estate commercial project, One Indiabulls Center, was awarded as the
Best Commercial Property at the Awaaz CRISIL CREDAI Real Estate Awards in
2.10 Future projects

Blu, Worli Mumbai

Indiabulls Green, Panvel - Mumbai
Indiabulls Golf City, Savroli - Mumbai
Centrum Park, Gurgaon NCR
Enigma, Gurgaon - NCR
Indiabulls Green, Chennai
Indiabulls City, Sonepat - NCR
One Indiabulls, Gurgaon - NCR
Mega Mall, Vadodara
Indiabulls Gulmohar Avenue, Gurgaon
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Functions of Stock Exchange
Maintain Active Trading:
Shares are traded on the stock exchanges, enabling the investors to buy and sell securities.
The prices may vary from transaction to transaction. A continuous trading increases the
liquidity or marketability of the shares traded on the stock exchanges.


Fixation of Prices:
Price is determined by the transactions that flow from investors demand and the suppliers
preferences. Usually the traded prices are made known to the public. This helps the
investors to make the better decision.
Ensures safe and fair dealings:
The rules, regulations and bylaws of the Stock Exchanges provide a measure of safety to the
investors. Transactions are conducted under competitive conditions enabling the investors to
get a fair deal.


Aids in financing the Industry:

A continuous market for shares provides a favorable climate for raising capital.


negotiability and transferability of the securities, investors are willing to subscribe to the
initial public offering (IPO). This stimulates the capital formation.
Dissemination of Information:
Stock Exchanges provide information through their various publications. They publish the
share prices traded on their basis along with the volume traded. Directory of Corporate
Information is useful for the investors assessment regarding the corporate. Handouts,
handbooks and pamphlets provide information regarding the functioning of the Stock
Performance Inducer:
The prices of stocks reflect the performance of the traded companies. This makes the
corporate more concerned with its public image and tries to maintain good performance.
Self-regulating organization:
The Stock Exchanges monitor the integrity of the members, brokers, listed companies and
clients. Continuous internal audit safeguards the investors against unfair trade practices. It
settles the disputes between member brokers, investors and brokers.
Regulatory Frame Work

This Securities Contract Regulation Act, 1956 and Securities and Exchange board of India
(SEB1) Act, 1992, provides a comprehensive legal framework. A 3-tier regulatory structure
comprising the ministry of finance, SEB1 and the Governing Boards of the Stock Exchanges
regulates the functioning of Stock Exchanges.


Ministry of finance
The Stock Exchange division of the Ministry of Finance has powers related to the application
of the provision of the SCR Act and licensing of dealers in the other area. According to SEBI
Act, The Ministry of Finance has the appellate and the supervisory power over the SEBI. It
has powered to grant recognition to the Stock Exchange and regulation of their operations.
Ministry of Finance has the power to approve the appointments of executives chiefs and the
nominations of the public representatives in the government Boards of the Stock Exchanges.
It has the responsibility of preventing undesirable speculation.
The Securities and Exchange Board of India
The Securities and Exchange Board of India even though established in the year 1988.
Received statutory powers only on 30th January 1992. Under the SEBI Act, a wide variety of
powers are vested in the hands of SEBI. SEBI has the powers to regulate the business of
Stock Exchanges, other security and mutual funds. Registration and regulation of market
intermediaries are also carried out by SEBI. It has responsibility to prohibit the fraudulent
unfair trade practices and insider dealings. Takeovers are also monitored by the SEBI has the
multi pronged duty to promote the healthy growth of the capital market and protect the

The Governing Board of Stock Exchanges:

The Governing Board of the Stock Exchange consists of elected members of directors,
government nominees and public representatives. Rules, by laws and regulations of the Stock
Exchange substantial powers to the executive director for maintaining efficient and smooth
day-to-day functioning of Stock Exchange. The Governing Board has the responsibility to
maintain and orderly and well-regulated market.
The Governing body of the Stock Exchange consists of 13 members of which


Six members of the Stock Exchange are elected by the members of the Stock

Central Government nominates not more than three members.

The board nominates three public representatives.

SEBI nominates persona not exceeding three and

The Stock Exchange appoints one Executive Director.

One third of the elected members retire at annual general meeting (AGM). The retired
member can offer himself for election if he is not elected for two consecutive years. If a
member serves in the governing body for two years consecutively, he should refrain offering
himself for another two years.
The members of the governing body elect the president and vice-president. It needs to
approval from the Central Government or the Board. The office tenure for the president and
vice-president is on year. They can offer themselves for re-election, if they have not held for
two consecutive years. In that case they can offer themselves for re-election after a gap of
one-year period.

National Stock Exchange

The National Stock Exchange (NSE) of India became operational in the capital market
segment on third November 1994 in Mumbai. The genesis of the NSE lies in the
recommendations of the pherwani committee (1991). Apart from the NSE. It had
recommended for the establishment of National Stock market System also. The committee
pointed out some major defects in the Indian stock market. The defects specified are.

Lack of liquidity in most of the markets in terms of depth and breadth.

Lack of ability to develop markets for debt.

Lack of infrastructure facilities and outdated trading system.

Lack of transparency in the operations that affect investors confidence.


Outdated settlement system that are inadequate to cater to the growing volume,
leading to delays.

Lack of single market due to the inability of various stock exchanges to function
cohesively with legal structure and regulatory framework.

These factors led to the establishment of the NSE.

The main objectives of NSE are as follows

To establish a nationwide trading facility for equities, debt and hybrid instruments

To ensure equal access investors all over the country through


communication network.

To provide a fair, efficient and transparent securities market to investors using an

electronic communication network.

To enable shorter settlement cycle and book entry settlement system.

To meet current international standards of securities market.

Promoters of NSE: IDBI, ICICI, IFCI, LIC, GIC, SBI, Bank of Baroda. Canara Bank,
Corporation Bank, Indian Bank, Oriental Bank of Commerce. Union Bank of India,
Punjab National Bank, Infrastructure Leasing and Financial Services, Stock Holding
Corporation of India and SBE capital market are the promoters of NSE.



Membership is based on factors such as capital adequacy, corporate structure, track record,
education, experience etc. Admission is a two-stage process with applicants requiring going
through a written examination followed by an interview.
A committee consisting of experienced people from the industry to assess the applicants
capability to operate as an exchange member, interviews candidates. The exchange admits
members separately to Wholesale Debt Market (WDM) segment and the capital market

Only corporate members are admitted on the debt market segment whereas individuals and
firms are also eligible on the capital market segment. Eligibility criteria for trading
membership on the segment of WDM are as follows.

The persons eligible to become trading members are bodies corporate, companies

Institutions including subsidiaries of banks engaged in financial services and such


Persons or entities as may be permitted form time to time by RBI/SEBI.

The whole-time directors should possess at least two years experience in any activity
related to banking or financial services or treasury.

The applicant must possess a minimum net worth of Rs.2 cores.

The applicant must be engaged solely in the business of securities and must not be
engaged in any fund-based activities.

The securities market achieves one of the most important functions of channeling idle
resources to productive resources or from less productive resources to more productive


resources. Hence in the broader context the people who save and investors who invest focus
more towards the economys abilities to invest and save respectively.

This enhances savings and investments in the economy, the two pillars for economic growth.
The Indian Capital Market has come a long way in this process and with a strong regulator it
has been able to usher an era of a modern capital market regime. The past decade in many
ways has been remarkable for securities market in India.
It has grown exponentially as measured in terms of amount raised from the market, the
number of listed stocks, market capitalization, trading volumes and turnover on stock
exchanges, and investor population. The market has witnessed fundamental institutional
changes resulting in drastic reduction in transaction costs and significant improvements in
efficiency, transparency and safety.

Dependence on Securities Market

Three main sets of entities depend on securities market- the corporate, the government &
households. While the corporate and governments raise resources from the securities market
to meet their obligations, the households invest their savings in securities.
Primary Market & Secondary Market
The securities market comprises two segments- primary market (new issues, offer for sale) &
secondary market (trading of stocks). There are two major types of issuers who issue
securities. The corporate entities issue mainly debt and equity instruments (shares,
debentures, etc.), while the governments (central and state governments) issue debt securities
(dated Securities, treasury bills). The two major exchanges, namely the NSE and the BSE
provide trading of securities.
Laws governing capital market


The four main legislations governing the securities market are:

The SEBI Act, 1992 which establishes SEBI to protect investors and develop and regulate
the Markets.

The Companies Act, 1956, which sets out the code of conduct for the corporate sector in
relation to issue, allotment and transfer of securities, and disclosures to be made in public

The Securities Contracts (Regulation) Act, 1956, read with the Securities Contracts
(Regulation) Rules, 1957 which provide for regulation of transactions in securities
through control over stock exchanges, and

The Depositories Act, 1996 which provides for electronic maintenance and transfer of
ownership of demat securities.

SEBI is the primary regulator of the Securities Market and the entities operating therein. The
SEBI Act and the Depositories Act are mostly administered by SEBI. The rules under the
securities laws are framed by government and regulations by SEBI. All these are
administered by SEBI. The powers under the Companies Act relating to issue and transfer of
securities and non-payment of dividend are administered by SEBI in case of listed public
companies and public companies proposing to get their securities listed
Nifty 50
The 50 stocks that were most favored by institutional investors in the 1960s and 1970s.
Companies in this group were usually characterized by consistent earnings growth and high
P/E ratios. The Nifty-50 stocks got their notoriety in the bull markets of the 1960s and early
1970s. They became known as "one-decision" stocks because investors were told. They could
buy and hold forever. Examples of Nifty-50 stocks included General Electric, Coca-Cola, and


IBM. However, part of this list included companies that have been troubled in the last decade,
such as Xerox and Polaroid.
Nifty Junior
The CNX Nifty Junior is an index for companies on the National Stock Exchange of India.
It consists of 50 companies representing approximately 10% of the traded value of all stocks
on the National Stock Exchange of India. The CNX Nifty Junior is owned and operated by
India Index Services and Products Ltd. It is quoted using the symbol
The CNX Nifty Junior and the S&P CNX Nifty represent the 100 most liquid commodities
traded on the National Stock Exchange of India. Together, they form a disjoint set; that is to
say, no one company can be listed on both indices simultaneously.
Stock or any other security representing an ownership interest.
On the balance sheet, the amount of the funds contributed by the owners (the stockholders)
plus the retained earnings (or losses). Also referred to as "shareholder's equity. In the context
of margin trading, the value of securities in a margin account minus what has been borrowed
from the brokerage. In the context of real estate, the difference between the current market
value of the property and the amount the owner still owes on the mortgage. Thus, it is the
amount, if any; the owner would receive after selling a property and paying off the mortgage.
Equity is a term whose meaning depends very much on the context. In general, you
can think of equity as ownership in any asset after all debts associated with that asset are paid
off. For example, a car or house with no outstanding debt is considered the owner's equity
since he or she can readily sell the items for cash. Stocks are equity because they represent
ownership of a company, whereas bonds are classified as debt because they represent an
obligation to pay and not ownership of assets.


Market Value
The current quoted price at which investors buy or sell a share of common stock or a bond at
a given time. Also known as "market price The market capitalization plus the market value
of debt. Sometimes referred to as "total market value".
In the context of securities, market value is often different from book value because the
market takes into account future growth potential. Most investors who use fundamental
analysis to pick stocks look at a company's market value and then determine whether or not
the market value is adequate or if it's undervalued in comparison to its book value, net assets
or some other measure.

A type of security that signifies ownership in a corporation and represents a claim on part of
the corporations assets and earnings. There are two main types of stock: common and
preferred. Common stock usually entitles the owner to vote at shareholders' meetings and to
receive dividends. Preferred stock generally does not have voting rights, but has a higher
claim on assets and earnings than the common shares. For example, owners of preferred stock
receive dividends before common shareholders and have priority in the event that a company
goes. Bankrupt and is liquidated. Also known as "shares" or "equity".
A holder of stock (a shareholder) has a claim to a part of the corporation's assets and
earnings. In other words, a shareholder is an owner of a company. Ownership is determined
by the number of shares a person owns relative to the number of outstanding shares. For
example, if a company has 1,000 shares of stock outstanding and one person owns 100
shares, that person would own and have. Claim to 10% of the companys assets Stocks are the
foundation of nearly every portfolio. Historically, they have outperformed most other
investments over the long run.


Any person, company, or other institution that owns at least 1 share in a company. A
shareholder may also be referred to as a stockholder.
Shareholders are the owners of a company. They have the potential to profit if the company
does well, but that comes with the potential to lose if the company does poorly.
A unit of ownership interest in a corporation or financial asset. While owning shares in
a business does not mean that the shareholder has direct control over the business's day-today operations, being a shareholder does entitle the possessor to an equal distribution in any
profits, if any are declared in the form of dividends. The two main types of shares are
common shares and preferred shares.
In the past, shareholders received a physical paper stock certificate that indicated that they
owned "x" shares in a company. Today, brokerages have electronic records that show
ownership details.
Owning a paperless share makes conducting trades a simpler and more streamlined process,
which is a far cry from the days were stock certificates needed to be taken to a. Brokerage
before a trade could be conducted. While shares are often used to refer to the stock of a
corporation, shares can also represent ownership of other classes of financial assets, such as
mutual funds.
Risk- Risk is defined as uncertainty in outcomes
The chance that an investment's actual return will be different than expected. This includes
the possibility of losing some or all of the original investment. It is usually measured by
calculating the standard deviation of the historical returns or average returns of a specific
investment. A fundamental idea in finance is the relationship between risk and return. The


greater the amount of risk that an investor is willing to take on, the greater the
potential return. The reason for this is that investors need to. be compensated for taking
on additional risk
Stock Option
A privilege, sold by one party to another, that gives the buyer the right, but not the obligation,
to buy (call) or sell (put) a stock at an agreed-upon price within a. certain period or on a
specific date. In the U.K., it is known as a "share option. American options can be exercised
anytime between the date of purchase and the expiration date. European options may only be
redeemed at the expiration date. Most exchange-traded stock options are American.

An instrument representing ownership (stocks), a debt agreement (bonds), or the rights to
ownership (derivatives).A security is essentially a contract that can be assigned a value
Examples of a security include a note, stock, preferred share, bond, debenture, option, future,
swap, right, warrant, or virtually any other financial asset.
Closing Price
The final price at which a security is traded on a given trading day. The closing price
represents the most up-to-date valuation of a security until trading commences again on the
next trading day.
3.2 Books Referred For the Study

Investing management -By Puthi Sing.

Security analysis and portfolio management-By Punithvathy Pandiyam


3.3 Case Referred During the Study

3.4 Journals Referred For the Study

Indian Journal Of Finance.

Financial Risk Management.

3.5 Wed Sites Visited For Reference And Collecting Data




Name of the company








CIPLA and WIPRO are in loss and risk is more, ABB is showing less risk compare to other
companies in 2012-2013
FOR THE YEAR 2013-2014

Name of the company








WIPRO and ZEEL are in loss and risk is more, ABB earned more returns than other
companies and risk is less compare to other companies in the year 2013-2014.
FOR THE YEAR 2014-2015

Name of the company








SATYAM, SBI earned more, loss risk is more. CIPLA, ONGC and TATA TEA also
earned loss and risk is high. TATA MOTORS returns are high compare to other companies in
the year 2014-2015.
















After the data is analyzed the following facts have been observed.
2012-13: From risk-return analysis of 2012-13, it is found that risk of all companies are
higher than their returns, but in comparison returns of ABB and BHARTHI AIRTEL has
higher, where as CIPLA and WIPRO has negative returns.
2013-14: From the analysis, the risk of all companies is higher than their returns excluding
satyam (Mahindra satyam). In comparison returns of ABB and TATA TEA is higher, WIPRO
continued its negative returns along with ZEEL.
2014-15: From the analysis, the M&M is performing better than other companies. In this year
most of the companies has negative returns. Satyam in particular has negative returns and
higher risk, this is due to BANKRUPTCY.


After observing the facts found out after the analysis and interpretations the following
suggestions are made to the investors.
1. When there is more risk, the return will also be highs but this does not hold in all
situations especially in the case of economic crisis.
2. As the world economy is influenced by US economy, the worst scenario of US economy
is influencing the others countries stock markets.
3. The sentiments and emotions sometimes play a vital role in causing fluctuations in the
stock markets. Therefore it is not advisable to invest at the time of crisis.
4. When markets are sliding down steeply, the investors will not be protected against the
risk of investment. Therefore it is not advisable to invest when the markets are very


5. Always it is felt that market position never stays for a long time. In this opinion Bullish
and Bearish markets end after some time. Therefore one can invest the time of Bearish
and soon after they reach bullish trend they can sell them off.

The present project work has been undertaken to study the risk-return relationship of
individual securities as well as nifty index to observe whether the stock prices have any
relationship with risk and return. As this project work is done by studying 15 individual
stocks of nifty and nifty index, there is much scope for the analysis, interpretation and
As the economy is fluctuations very badly, the stock prices are affected by these
fluctuations and the market has become so volatile. In this situation investors should be very
careful. The firm which is dealing the trading of share market should be caution enough so
that investors may not suffer losses.



Investing management By Puthi Sing.

Security analysis and portfolio management By Punithvathy Pandiyam