SESSION-2009-11
ACKNOWLEDGEMENT
PREFACE
Certificate____________________________________2
Acknowledgement______________________________3
Preface 4
Executive Summary 7
Objective Of the study 8
The Indian Capital Market_______________________9
• An Overview
• Other leading cities in stock market operation
• Growth of Indian Stock Exchanges
• Sensex and Nifty
• History
• Key Milestones
• Myths of Stock Market
• How Stock Market Works
Initial Public Offering__________________________30
• Introduction
• How to apply Public issue
• How to make Payment for IPOs
• Role of SEBI in process of IPO
DEMAT account______________________________34
• Introduction
• How to open Demat account
SENSEX____________________________________49
• Introduction
• SENSEX calculation Methodology
• Concept of Free Float
• Definition of Free Float
• Function and Purpose of Stock Market
Depository__________________________________55
• CDSL
• NSDL
• CSD
FII(Foreign Institutional Investor)________________61
• Introduction
• FII mean
• Regulations
Participatory Notes___________________________71
Scams of Share Market________________________75
• Harshad Mehta Scam
• Ketan Parekhs Scam
Research Methodology_______________________90
Result analysis &Interpretation________________97
Suggestions_______________________________104
Conclusion_________________________________105
Questions for interview_______________________108
Biblography________________________________109
Executive Summary
In this study behavior of the share market has been
analyzed, and changing trends which comes in last ten
years. For which I surveyed the market and interviewed
registered brokers, sub- brokers and investors through
which I analyze the customer behavior, how the share
market affect. The study is all about capital market .The
capital market is the market for securities, where
companies and governments can raise long term funds. It
is a market in which money is lent for periods longer than
a year. The capital market includes the stock market and
the bond market. Financial regulators, such as the U.S.
Securities and Exchange Commission (SEC), oversee the
AN OVERVIEW
HISTORICAL PERSPECTIVE
The history of Indian stock market is about 200 years old.
Prior to this the hundis and bills of exchange were in use,
specially in the medieval period, which can be considered
as a form of virtual stock trading but it was certainly not
an organized stock trading. The recorded stock trading
can be traced only after the arrival of East India
Company. The first organized stock market that was
governed by the rules and regulations came into the
existence in the form of ‘The Native Share and Stock
Brokers' Association in 1875. After gone through
numerous changes this association is today better as
Bombay Stock Exchange, which remains the premier stock
exchange since its inception. During this period several
other exchanges were launched and some of which were
closed also. Presently, there are 19 recognized stock
exchanges out of which four are national level exchanges
and the remaining are regional exchanges. National Stock
Exchange, established in 1992, was the last exchange.
Although the regional level exchanges are in existence the
volume of trading in these exchanges is negligible.
KEY MILESTONES
1900s
Since 1990
7000, June 20, 2005 On June 20, 2005, the news of the
settlement between the Ambani brothers boosted investor
sentiments and the scrips of RIL, Reliance Energy,
Reliance Capital, and IPCL made huge gains. This helped
the Sensex crossed 7,000 points for the first time.
False: The only thing true about this is that young people
have time on their side if they lose all their money. But
young people have little disposable income to risk losing.
If they follow the tips above, they can make money over
many years. Young people have the time to be patient.
DEMAT ACCOUNT
Documents Required
SEBI – Introduction
Organisation Structure
CHAIRMAN (S.4(1)
Mr CB Bhave Chairman SEBI (a) of the SEBI Act,
1992)
Member (S.4(1)(d)
Whole Time
Mr MS Sahoo of the SEBI Act,
Member, SEBI
1992)
Member (S.4(1)(d)
Whole Time
Dr KM Abraham of the SEBI Act,
Member, SEBI
1992)
Member (S.4(1)(d)
Mr Mohandas Pai Director, Infosys of the SEBI Act,
1992)
the investors
INTRODUCTION –BSE
Over the past 133 years, BSE has facilitated the growth of
the Indian corporate sector by providing it with an
efficient access to resources. There is perhaps no major
corporate in India which has not sourced BSE's services in
raising resources from the capital market.
The Organisation
Our Group
Listing
Definition of Free-float
Depository
What is a Depository?
A depository holds shares and other securities of investors
in electronic form. Through Depository Participants (DPs),
it also provides services related to transactions in
securities. Its structure and functioning are similar to the
Bank. Presently in India, there are two depository viz.
National Securities Depository Limited (NSDL) and Central
Depository Services (I) Limited (CDSL). Both of them are
registered with SEBI.
What is a DP?
DP is a member of a Depository who offers its services to
hold securities of Investors (Beneficial Owners) in
ISHWAR CHANDRA TIWARI ROLL NO-0925770015 Page 2
dematerialized form. DP is like a Bank branch. It is an
agent of the depository. DP works as an interface between
Depository and Investors. DPs are required to be
registered with SEBI. If an investor wants to avail the
services offered by Depository, he has to open a Demat
account with DP similar to opening of a bank account with
a branch of the bank.
About NSDL
Functions
What
This was, however not the end of the volatility. The next
day (October 18, 2007), the Sensex tumbled by 717.43
points — 3.83 per cent — to 17998.39, its second biggest
fall. The slide continued the next day when the Sensex fell
438.41 points to settle at 17559.98 at the end of the
week, after touching the lowest level of that week at
17226.18 during the day.
Early Life
“In 1992, when I broke the story about the Rs 600 crore
that he had swiped from the State Bank of India, it was
his visits to the bank’s headquarters in a flashy Toyota
Lexus that was the tip-off. Those days, the Lexus had just
been launched in the international market and importing it
cost a neat package,” Dalal wrote in one of her columns
later.
Till now, it is still unknown what was the real story behind
the entire scam. The recent Hindi movie 'Gafla' showed
this scam in a different perspective. and is 45 years old.
Shares scam
SATYAM SCAMS
Byrraju Ramalinga Raju (born September 16, 1954) is
the founder of Satyam Computers and was its Chairman
until January 7, 2009 when he resigned from the Satyam
board after admitting to corporate fraud. Satyam was
created by Ramalinga Raju and others and was until
recently perceived to be amongst the top Indian IT
vendors. Raju has allegedly admitted overstating its cash
reserves by USD$ 1.5 billion. Later, allegations have been
made that the company's assets were not inflated, but
instead siphoned off by Ramalinga Raju. Raju is currently
held in Hyderabad's Chanchalguda jail on criminal charges
including fraud, forgery, cheating, embezzlement and
insider trading.
"We respect the Sebi order and we will certify the position
by filing our objections within the time stipulated from the
date of this order. We believe that the inspection of our
operations undertaken by the depositories or SEBI did not
reveal any serious violation, especially those with a
malafide intent.
RESEARCH METHODOLOGY
TITLE:
RESEARCH DESIGN :
➢ Source of Data.
➢ Method of Data collection.
➢ Types of research.
➢ Sampling
➢ Tools of analysis
Source of Data:
There are many sources which provide information
regarding the research. The data may be of two types
1) Primary Data.
2) Secondary Data
1) Primary Data:
• Questionnaires
• Interviews
• Schedules etc.
1) Secondary Data:
SAMPLING METHODOLOGY
Sampling Technique:
Random Sampling:-
Sampling Unit:
Sample size:
Sampling Universe:
Tool of Analysis:
➢ Qualitative.
i. Observation
ii. Case Study
Qualitative:
It is concerned with the qualitative phenomenon i.e.
phenomenon related to or involves quality. For instance,
when we are interested in investigating the reason for
human behavior i.e. why people think or do certain thing.
We quite often talk of “Motivation Research” an important
➢ Case Study:
INTERPRETATION
So you can see that this very simple trading strategy can
produce some excellent results and it’s a lot more
effective than most of the overcomplicated systems that a
lot of traders use. Successful share trading isn’t really that
difficult. You simply need to look for shares that are
trending either upwards or downwards and then find a
way of profiting from this trend.
All the scams affect the share market every scams make
the drastic change in share market. In Harshad Mehta
scams share market raise 1000 points in just 16 days
When his scam was opened share market falls down
suddenly through which investor belief was broken. And
they were avoiding the investment in share market. When
the investors are interested to invest the next scam was
held Ketan Parekh scam. In this the share prices of Zee
telefilm raised from Rs.476 to Rs.1555 and it falls down to
Rs.121 in a year. And Satyam scam plays a major role in
the downfall of Indian market. It is because of only one
member our market has decreased a lot. Lot of
shareholders suffers because of him as the share price
For Investors:-
BIBLIOGRAPHY
1. BOOKS/MAGAZINES REFFERED:
• DALAAL STREET
• INDIA TODAY
• BUSINESS TIMES
2. WEBSITES REFFERED:
• www.bseindia.com
• www.nseindia.com
• www.sebi.gov.in
3. SEARCH ENGINES:
• www.google.co.in
• www.wikipedia.org.in
THANK YOU