Share-Market

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DECLARATION
I, Ankur Tiwari a student of PGDM VI trimester , hereby solemnly declare that the Research
proect titled “INVESTMENT IN SHARE MARKET” is the outcome of my own
research prepared by me and the same has not been submitted to any uni!ersity or
institute for the award of any de"ree or diploma#
A$%&R TI'ARI
Roll $o# ()*()(
ACKNOWLEDGEMENT
I am also thankful and would like to e+press my Gratitude to the honorable Mrs. Karuna Gupta
and the entire Institute for "i!in" me a Platform to ha!e this wonderful opportunity and bein"
able to "et a "limpse of the ,orporate 'orld#
WITH REGARDS
ANKUR TIWARI
PGDM VI TRIMESTER
PREFACE
As a Part of PGDM Pro"ram, -tudent has to pursue a proect duly appro!ed by the .aculty of
,oncerned area# I had the pri!ile"e of undertakin" the proect on /In!st"!nt In S#ar!
Mar$!t0 in R!%&'ar! S!(ur&t&!s L&"&t!)# Main aim of the Proect is to study 1ow to, 'hen and
where we can in!est our money to "ain more profit#
My findin" was that the e+tensi!e reforms introduced o!er the last few years ha!e enhanced the
inte"rity, transparency and efficiency of the operations in the securities market# There has been
appreciable impro!ements in tradin" and settlement of securities in secondary market, and the
market has become a safer place as re!ealed by the interest of in!estors throu"h tradin" !olumes#
A$%&R TI'ARI
CONTENTS
S.NO. TOPIC PAGE NO.
*. E+!(ut&! Su""ar,---------.. *
.. O/0!(t&! 12 pr10!(t---------- 3
3. Intr1)u(t&1n................................................... 4
4. C1"pan, Pr12&%!----------. 5
6. D!p1s&t1r, s!r&(!s---------... .7
8. 9as&( s!r&(!------------.. 37
5. F&nan(&a% )!r&at&!s--------- 46
:. R!s!ar(# 1/0!(t&!---------- 53
;. R!s!ar(# "!t#1)1%1',--------.. 54
*7. Data (1%%!(t&1n------------ 56
**. Sa"p%&n' p%an------------.. 58
*.. F&n)&n's--------------- :*
*3. C1n(%us&1n--------------. :*
*4. L&"&tat&1ns--------------. :.
*6. <u!st&1nna&r!-------------. :4
*8. 9&/%&1'rap#,-------------.. :8
E=ECUTIVE SUMMAR>
The Present business scenario is totally consumer oriented# 2!ery company faces stiff
competition from its competitors, each pro!ides the best product at competiti!e rates# As a result
customers ha!e lot of choices to "et the best with the least cost# To face this competition, it is
!ery important to know customer3s beha!ior, their needs, preferences and also the moti!ational
factors#
Reli"are -ecurities 4imited Pro!ide its 2+pert ser!ice in share market 5perations to institutional
In!estors# C1"pan, &s a M!"/!r 12 Nat&1na% St1($ E+(#an'! as ?!%% as 91"/a,
St1($E+(#an'!# Reli"are is slowly but steadily "ainin" market share and "oodwill in the
Market# Its strate"ies for marketin" its ser!ices as well as de!elopin" a "ood Relationship with
its client has "i!en an ed"e o!er the other ser!ice pro!iders# Reli"are is on e+pansion path and is
lookin" forward to be in the top# Reli"are is a !ery fle+ible or"ani6ation and it "i!es e7ual
opportunity to its youn" and ener"etic staff to work so as to brin" this or"ani6ation amon" the
top# to be dynamic in this industry# The comparati!e analysis done in this proect show how
Reli"are has built competiti!e ed"e on some "round
The Proect help you understand the strate"ies of this industry ri"ht from De8Mat to Tradin",
Mar"in to analysis and risk to return# I hope this proect pro!e to be beneficial for the ,ompany
and also "i!e the idea about the industry#I learnt a lot throu"h out the process of undertakin" this
proect report#
To fulfill my task I had to !isit the client personally who are dealin" in share tradin" with this
company or some other brokin" house#
*
.or this proect I was assi"ned the tar"et of *) accounts, for which I first "enerated the database
and made appointment with them and con!ert them in as traders of Reli"are -ecurities 4imited,
for this I ha!e to con!ince them and e+plain the concept and collect the Tradin" .orm and a
che7ue of Rs# 9))) only#
After "oin" throu"h the e+ercise I found that R-4 is one of the
up8comin" companies in the -hare Market, as the credibility of other companies are "oin" down
in the market and it is the ri"ht time for the R-4 to built its reputation in the market# The Main
reason for R-4 low market share is because of local brokers in the market which a char"in" !ery
less Mar"in as initial in!estment for Tradin" in -tock Market#
:ut $o doubt it is ha!in" lots of scope to "row in the financial Market, and I wish it is ha!in" a
shinin" future in the comin" years#
(
O9@ECTIVES
Pr&"ar, O/0!(t&!A
 To -tudy how to in!est money in -hare8 Market#
S!(1n)ar, O/0!(t&!A
 To study !arious financial products like 27uity, Mutual .unds, ,ommodity; Portfolio
Mana"ement -er!ices#
 To -tudy the !arious ser!ices pro!ided by :roker house to their clients#
 To know in!estors e+perience in capital market
 To study what other ser!ices in!estors e+pect from their broker house.
<
INTRODUCTION
A/1ut s#ar!s 1r st1($s
In simple words, a s#ar! 1r st1($ is a document issued by a company, which entitles its holder
to be one of the owners of the company# A share is issued by a company or can be purchased
from the stock market#
:y ownin" a share you can earn a portion and s!%%&n' s#ar!s you "et capital "ain# -o, your return
is the di!idend plus the capital "ain# 1owe!er, you also run a risk of makin" a capital loss if you
ha!e sold the s#ar! at a price below your buyin" price#
<u&($ Fa(ts 1n St1($s an) S#ar!s
• 5wnin" a stock or a share means you are a partial owner of the company, and you "et
!otin" ri"hts in certain company issues
• 5!er the lon" run, stocks ha!e historically a!era"ed about *)= annual returns howe!er,
stocks offer no
"uarantee of any returns and can lose !alue, e!en in the lon" run
• In!estments in stocks can "enerate returns throu"h di!idends, e!en if the price
>
Reli"are is dri!en by ethical and dynamic process for wealth creation# :ased on this, the
company started its endea!our in the financial market? Religare Enterprises Limited (A
Ranbaxy Promoter Group Company)
Throu"h Reli"are -ecurities 4imited, ReligareFinvest Limited, ReligareComdeLimited and
Religare Insurane Advisory !ervies Limited pro!ides inte"rated financial solutions to its
corporate, retail and wealth mana"ement clients#
Reli"are is proud of bein" a truly professional financial ser!ice pro!ider mana"ed by a hi"hly
skilled team, who ha!e pro!en track record in their respecti!e domains#
:ranches Today, we ha!e a "rowin" network of *9) branches and more than <)) business
partners spread across *@) cities in India and a fully operational
&nlike a traditional brokin" firm, Reli"are "roup works on the philosophy of partnerin" for
wealth creation# 'e not only e+ecute trades for our clients but also pro!ide them critical and
timely in!estment ad!ice# The "rowin" list of financial institutions with which Reli"are is
empanelled as an appro!ed broker is a reflection of the hi"h le!el ser!ice standard maintained by
the company#
Reli"are has a !ery credible team research ; Analysis di!ision, which not only caters to the need
of our institutional client but also "i!es there !aluable input to in!estment dealers#
Reli"are is amon" the capital market fraternity and the most !ibrant place in terms of
information and e!ery day it is consolidatin" its efforts to pro!ide more customi6ed ser!ices to
its clients#
9
R!%&'ar! )!a%s ?&t#- Pr1)u(ts AB
 E<UITIES-..
 MUTUAL FUND
 DERIVATIVES CF D OE
 COMODITIES
 P M S
 WEALTH MANAGEMENT
A
COMPAN> PROFILE
Our 9ran) I)!nt&t,
Na"!
Reli"are is a 4atin word that translates as Bto bind to"etherB# This name Reli"are was chosen to
reflect the inte"rated nature of the financial ser!ices the company offers# The name is intended to
unite and brin" to"ether the phenomenon of money and wealth to co8e+ist and ser!e the interest
of indi!iduals and institutions, alike#
S,"/1%
The name is paired with the symbol of a four8leaf co!er, a rare mutation of the common three8
leaf clo!er# Traditionally, it is considered "ood fortune to find a four leaf clo!er as there is only
one four8leaf clo!er for e!ery *),))) three8leaf clo!ers found#2ach leaf of the four8leaf clo!er
has a special meanin" in the sphere of Reli"are#Reli"are -ecurities 4td# is one of the leadin"
brokin" house of India# It is known for its stron" belief in Value8In!estin" ideas, which forms the
C
core of its in!estment philosophy# Reli"are pro!ides end8to8end e7uity solutions to institutional
and indi!idual in!estors#
RELIGARE SECURITIES LIMITED
MISSIONA
Pro!idin" inte"rated financial care dri!en by the relationship of trust and confidence#
VISIONA
To be IndiaBs first Multinational pro!idin" complete financial ser!ices solution
across the "lobe#
R!%&'ar! Gr1up 12 C1"pan&!sA
Reli"are 2nterprises 4imited "roup comprises of Reli"are -ecurities 4imited, Reli"are ,omde+
4imited, Reli"are.in!est 4imited and Reli"are Insurance Ad!isory 4imited which deal in e7uity,
commodity and financial ser!ices business#
R-4 is one of the leadin" brokin" houses of India and are dealin" into 27uity :rokin",
Depository -er!ices, Portfolio Mana"ement -er!ices, Institutional 27uity :rokera"e ;
Research, In!estment :ankin" and ,orporate .inance
2+tension of ser!ices has been a constant feature in Reli"are to re"ard the needs of our clients#
,onse7uently, company is soon "oin" to launch Internet Tradin" and Merchant :ankin"# This
would take care of different in!estment needs of different classes of in!estors
@
To facilitate free and fare tradin" process Reli"are is a member of maor financial institutions
like, $ational -tock 2+chan"e of India, :ombay -tock 2+chan"e of India, Depository
Participant with $ational -ecurities Depository 4imited and ,entral Depository -er!ices DIE
4imited, and a -2:I appro!ed Portfolio Mana"er
R-4 ser!es a platform to all se"ments of in!estors to a!ail the opportunities offered by in!estin"
in Indian e7uities either on their own or throu"h mana"ed funds in Portfolio Mana"ement#
R!%&'ar! C1")!+ L&"&t!)A
Reli"are is a member of $,D2F and M,F and pro!ides platform for tradin" in commodities,
which is an online facility also#
R,4 pro!ides platform to both a"ro and non8a"ro commodity traders to deri!e the actual price of
the commodity and also to trade and hed"e acti!ely in the "rowin" commodity tradin" market in
India#
'ith this reali6ation, Reli"are ,omde+ is comin" up with its branches at >(8mandi locations# It
is a fla"ship effort from our team which would be helpful in facilitatin" trade and speculatin"
price of commodities in future#
R!%&'ar!F&n!st
Reli"are.in!est 4imited DR.4E, a $on :ankin" .inance ,ompany D$:.,E is a""ressi!ely
makin" a name in the financial ser!ices arena in India# In a fast paced, constantly chan"in"
dynamic business en!ironment, R.4 has deli!ered the most competiti!e products and ser!ices#
G
R.4 is primarily en"a"ed in the business of pro!idin" finance a"ainst securities in the secondary
market# It also pro!ides finance for application in Initial Public 5ffers to non8retail clients in the
primary market
R.4 is also plannin" to initiate personal loan portfolio as fund based acti!ity and mutual fund
distribution as fee based acti!ities#Alon" with this, the company also undertakes non8fund based
ad!isory operations in the field of ,orporate .inancin" in the nature of ,redit -yndication which
includes inter alias, bills discountin", inter corporate deposit, workin" capital loan syndication,
placement of pri!ate e7uity and other structured products
R!%&'ar! Insuran(! A)&s1r, Lt).
Reli"are has been takin" care of financial ser!ices for lon" but there was a missin" link#
.inancial plannin" is incomplete without protecti!e measure i#e# structured products to take care
of e!ent of thin"s that may "o wron"
,onse7uently, Reli"are is soon comin" up with Reli"are Insurance Ad!isory -er!ices 4imited#
As composite insurance broker, we would deal in both insurance and reinsurance, pro!idin" our
clients risk transfer solutions on life and non8life sides#
This ser!ice will take benefit of Reli"are3s !ast business empire spread throu"hout the country
pro!idin" our !alued clients insurance ser!ices across India# 'e aim to ha!e a wide reach with
our ser!ices H literallyI That3s why we are caterin" the insurance re7uirements of both retail and
corporate se"ments with products of all the insurance companies on life and non8life side still,
there is more in store# 'e also cater indi!iduals with a complete suite of insurance solutions,
both life and "eneral to miti"ate risks to life and assets throu"h our e+istin" network of o!er *9)
*)
branches H e+pected to reach (9) by the end of this yearI
R!%&'ar! S!(ur&t&!s Lt). CRSLE
'e feel immensely pri!ile"ed in introducin" Reli"are -ecurities 4imited, a company mana"ed
and controlled by Ranba+y promoters and presently amon" the leadin" brokera"e house of India#
The primary focus of R-4 is to cater to ser!ices in ,apital Market 5perations to Institutional
In!estors# The ,ompany is a member of the $ational -tock 2+chan"e D$-2E and 5T,2I# The
"rowin" list of the financial institutions with whom R-4 is empanelled, as appro!ed :roker
which is a reflection of the hi"h le!els of ser!ices maintained by the ,ompany# As on date the
,ompany is empanelled with Alliance ,apital AM,, &TI, ID:I, I.,I, -:I, :5I8M., Punab
$ational :ank, P$:8M., 5riental Insurance, GI,, &TI85ffshore, I,I,I ,an bank M., Punab
; -ind :ank, Pioneer ITI, -&$ .;,, ID:I Principal, Prudential I,I,I, I$G :arin" and J M
Mutual .und#
• Reli"are in recent past has been constantly inno!atin" in terms of the product and
ser!ices, which it offers, and in this respect it has started a premium $RI, .Is, 1$Is and
,orporate -er!icin" "roup# This "roup specifically caters to the "rowin" in!estment
needs of these premium client cate"ories by takin" all their portfolio in!estment decisions
dependin" upon their risk K return parameter#
• Reli"are has a !ery credible team in its Research ; Analysis di!ision, which not only
caters to the need of our Institutional clientele but also "i!es their !aluable input to
In!estment Dealers#
**
• Reli"are is also "i!in" in house depository ser!ices to its clientele and it is amon" one the
leadin" depository ser!ices pro!ide amon" country# Presently it mana"es more than Rs#
<))) ,rores worth of shares under its electronic custody#
9a($'r1un) 12 R!%&'ar! S!(ur&t&!s Lt)
Reli"are -ecurities 4imited, a Ranba+y Promoter Group ,ompany, was founded by late Dr#
Par!inder -in"h D,MD Ranba+y 4aboratories 4imitedE, with the !ision of pro!idin" inte"rated
financial care dri!en by the relationship of trust ; confidence# To reali6e its !ision the Reli"are
"roup pro!ides !arious financial ser!ices which include brokin" Dstocks ; commoditiesE,
depository participant ser!ices, portfolio mana"ement ser!ices, ad!isory on mutual fund
in!estments and many more# 'orkin" on the philosophy of bein" /.inancial ,are Partner0,
Reli"are unlike other traditional brokin" firms not only e+ecutes the trades for the clients but
also pro!ides them critical and timely in!estment ad!ice# The "rowin" list of financial
institutions with which Reli"are is empanelled as an appro!ed broker is a reflection of the hi"h
le!els of ser!ice standard maintained by the company# Reli"are is a truly professional financial
ser!ice pro!ider mana"ed by a team of hi"hly skilled professionals who ha!e pro!en track record
in their respecti!e domains# Reli"are has the widest reach throu"h its Re"ional, Lonal and
:ranch 5ffices spread across the len"th ; breadth of the country#
*(
N1?a)a,s R!%&'ar!
is dri!en by ethical and dynamic process for wealth creation# :ased on this, the company started
its endea!or in the financial market#
8 An ISO ;77* A .777 (1"pan,
8 Member of $ational -tock 2+chan"e D$-2E since $o!ember *GG>, first deposit based
8 Member of :-2#
8 D!p1s&t1r, Part&(&pant ?&t#
8 $ational -ecurities Depository 4imited D$-D4E since July ())) 8
8 ,entral Depository -er!ices DIndiaE 4imited D,D-E since .ebruary ())<
8 -2:I Appro!ed Portfolio Mana"er
8 'orkin" on the Philosophy of bein" /.inancial ,are Partner0
8 Amon" the leadin" ser!ice pro!ider in ,apital Market
R!%&'ar! Ent!rpr&s!s L&"&t!) DA Ranba+y Promoter Group ,ompanyE throu"h Reli"are
-ecurities 4imited, Reli"are .ine!est 4imited, Reli"are ,ommodities 4imited and Reli"are
Insurance Ad!isory -er!ices 4imited pro!ides inte"rated financial solutions to its corporate,
retail and wealth mana"ement clients# Today, we pro!ide !arious financial ser!ices which
include In!estment :ankin", ,orporate .inance, Portfolio Mana"ement -er!ices, 27uity ;
,ommodity :rokin", Insurance and Mutual .unds# Plus, there3s a lot more to come your way#
*<
Pr!s!n(!
R!%&'ar! is present in more than *9) branches all o!er India and the tar"et is to cross <9)
branches !ery soon# 5ur branches are fully e7uipped with hi"h bandwidth internet lines and hi"h
end computers i#e# the latest IT tools# There are efficient branch mana"ers and dealers to "i!e
you tips of hi"hest 7uality and accuracy with support from our analysts# 5ur branches would
make you feel like doin" business in Dalal -treet howe!er, in a more sophisticated manner# Mou
"et to work with more traders and learn more and also trade more#
In2rastru(tur!
O22&(!s
The company has offices located at prime locations in Mumbai, $ew Delhi,
%olkatta and ,hennai# The offices are centrally located to cater to the re7uirements
of institutional and corporate clients and retails clients, and for ease of operations
due to pro+imity to stock e+chan"es and banks# Today, we ha!e a "rowin" network
of *9) branches and more than <)) business partners spread across *@) cities in
India and a fully operational international office at 4ondon
2rrorN Reference source not found
2rrorN Reference source not found
*>
MANAGEMENT
Reli"are is led by indi!iduals who are professionals and leaders in e!ery sense of the word#
91ar) 12 D&r!(t1rs
Mr.Harpa% S&n'#
 More than (C years of e+perience in the corporate sector
 Director H Ranba+y 4aboratories 4imited
 ,hairman8.ortis 1ealthcare 4imited and .ortis .inancial -er!ices 4imited
Mr. S#&&n)!r M1#an S&n'#
 Joint Mana"in" Director of .ortis 1ealthcare and -R4 Ranba+y
 Director in .ortis .inancial -er!ices 4imited and .ortis ,omde+ 4imited#
Mr. Ma%&n)!r M1#an S&n'#
 President, Pharmaceuticals and 2+ecuti!e Director at Ranba+y 4aboratories 4imited
 Director in .ortis 1ealthcare 4imited, .ortis .inancial -er!ices 4imited and .ortis
,omde+ 4imited.
Mr. Sun&% G1)#?an&
 ,hief 2+ecuti!e 5fficer and Mana"in" Director of .ortis -ecurities 4imited
 2+perience of mana"in" lar"e businesses for more than *9 years.
Mr. S#a(&n)raNat# A
 Group ,hief operatin" 5fficer, Reli"are securities ltd#
Mr. An&% Sa+!na
*9
Group chief .inance 5fficer, Reli"are -ecurities #ltd
STRUCTURE OF THE ORGANIFATION
The company owes its success to its stron" mana"ement team, most of which has been there since its inception#
Or'an&Gat&1n Stru(tur!A
$ational -ales and Marketin" 1ead
Vice President8In!estment Vice President8-ales
Assistant Vice President8In!estment Assistant Vice President8-ales
Lonal mana"er in!estment Re"ional -ales 1ead
-enior In!estment mana"er :ranch Mana"er
*A
Mana"er In!estment Team 4eader
Relationship Mana"er
Associate Relationship Mana"er
Asst# Relationship Mana"ers
Relationship 2+ecuti!e
'e are pro!idin" 5ffline tradin" facility throu"h 5DI$ -oftware#
DIET ODIN
*C
9us&n!ss Pr12&%!
Reli"are 2nterprises, a Ranba+y promoter "roup company, is the holdin" company for inte"rated
financial ser!ices# The company was incorporated as a pri!ate limited company on Jan# <), *G@>
and the status chan"ed to a public limited company on Au"# **, ())A#
The company is the holdin" company for all businesses, structured and bein" operated throu"h
!arious subsidiaries# It offers a wide ran"e of financial products and ser!ices across the three key
business !erticals of retail, wealth mana"ement and the institutional spectrum# Retail ser!ices
include e7uity and commodities brokera"e, personal financial ser!ices Dincludin" insurance
brokera"e and mutual fund distributionE, 4A-, personal loans, and internet tradin"# 'ealth
ser!ices include PM-, wealth ad!isory ser!ices and pri!ate client e7uity ser!ices Dincludin"
international e7uity ser!icesE# The Institutional ser!ices include institutional distribution
ser!ices, in!estment bankin" and transaction ad!isory ser!ices#
The subsidiaries of the company include Reli"are -ecurities, Reli"are in!est, Reli"are
,ommodities, Reli"are Insurance :rokin", Reli"are Venture ,apital, Reli"are Realty,
Reli"areInsurance 1oldin" ,ompany, Reli"are .inance, Reli"are ,apital Markets and Reli"are
'ealth Mana"ement -er!ices# The company has a 9)N9) oint !enture with AustraliaOs
Mac7uarie :ank for e+pandin" its wealth mana"ement business in India#
Reli"are is proud of bein" a truly professional financial ser!ice pro!ider mana"ed by a hi"hly
skilled team, who ha!e pro!en track record in their respecti!e domains# Reli"are operations are
mana"ed by more than ())) hi"hly skilled professionals who subscribe to Reli"are philosophy
and are spread across its country wide branches#
*@
The companyOs retail network is spread across more than *(*C locations in more than <G( cities
and towns# It operates from si+ re"ional offices and (9 sub8re"ional offices with business
associates all o!er India and a representati!e office in 4ondon# Reli"are has a "rowin" network
of more than*9) branches and more than <)) business partners spread across more than*@) cities
in India and a fully operational international office at 4ondon#
The company is a member of the $ational -tock 2+chan"e of India, :ombay -tock 2+chan"e of
India, depository participant with $ational -ecurities Depository and ,entral Depository
-er!ices India, and -2:I appro!ed portfolio mana"er#
The re"istered and corporate office of the company is located at MaladD'estE,Mumbai
FUTURE PLANS
The !ision is to build Reli"are as a "lobally trusted brand in the financial ser!ices domain and
present it as the BIn!estment Gateway of IndiaB# All employees of the "roup, currently more than
G,9)) in number, ceaselessly stri!e to pro!ide financial care dri!en by the core !alues of
dili"ence and transparency#
The company will use funds raised throu"h the initial public offerin" IP5 to e+pand domestic
operations and network of branches, fund retail finance business, and e+pand financin" acti!ity#
DEPOSITOR> SERVICES
Depository is a facility for holdin" securities, which enables securities transactions to be
processed by book entry# In addition to the core ser!ices of electronic custody and trade
*G
settlement ser!ices, it pro!ides special ser!ices like pled"e, hypothecation of securities,
automatic deli!ery of securities to clearin" corporations, distribution of cash and non8cash
corporate benefits, stock lendin", distribution of securities allots in case of public issues#
A depository can be compared to a bank# A depository holds securities like shares in!estors in
electric form# :esides holdin" securities, a depository also pro!ides ser!ices related to
transactions in securities#
A depository interfaces with the in!estors throu"h it3s a"ents called Depository
ParticipantsDD#P#sE#If an in!estor wants to a!ail the ser!ices offered by depository, the in!estor
has to open an account with associate relationship mana"er# This is similar to openin" an account
with any branch of a bank in order to utili6e the bank3s ser!ices#
Depository Participant DDPENThe in!estor obtains Depository -er!ices throu"h a depository
participant of $-D4# ADP can be a bank, financial institution, a custodian, a broker, or any
entity eli"ible as per -2:I DDepositories and ParticipantsE Re"ulations, *GGA# The -2:I
re"ulations and $-D4 bye laws also lay down the criteria for any of these cate"ories to become
A DP#
Just as one opens a bank account in order to a!ail of the ser!ices of a bank, an in!estor opens a
depository account with a depository participant in order to a!ail of depository facilities# Thou"h
$-D4 commenced operations with ust three DPs, Depository Participant -er!ices are now
a!ailable in most of the maor cities and towns across the country#
Issuin" ,ompaniesK their Re"istrar ; Transfer A"entsN -ecurities issued by issuers who ha!e
()
entered into an a"reement with $-D4 are admitted into the $-D4 depository# As per this
a"reement, issuer a"rees to !erify the certificates submitted for dematerialisation before they are
dematerialised and to maintain electronic connecti!ity with $-D4# 2lectronic connecti!ity
facilitates dematerialisation, rematerialisation, daily reconciliation and corporate actions#
$-D4 is electronically linked to each issuer company or its R;T a"ent# This facilitates
dematerialisation, rematerialisation, daily reconciliation and corporate actions#
,learin" ,orporation K 1ouseNThe clearin" corporationsKhouses of stock e+chan"es also
ha!e to be electronically linked to the depository in order to facilitate the settlement of the trades
done on the stock e+chan"es for dematerialised shares# At present, all the maor clearin"
corporationsKhouses of stock e+chan"es are electronically connected to $-D4#
R-4 pro!ides depository ser!ices to in!estors as a Depository Participant with $-D4 and
,D-4#
The Depository system in India links issuers, Depository Participants, Depositories $ational
-ecurities Depository 4imited D$-D4E and ,entral Depository -er!ices DIndiaE 4imited D,D-4E
and clearin" houses K clearin" ,orporation of -tock 2+chan"es# These facilitate holdin" of
securities in demateriali6ed form and securities transactions are processed by means of account
transfers#
5ur customer centric account schemes ha!e been desi"ned keepin" in mind the in!estment
Psycholo"y# 'ith a competent team of skilled professionals, we mana"e o!er >*),)))
accounts and ha!e a dedicated customer care centre, e+clusi!ely trained to handle 7ueries
from our customers# 'ith our country wide network of branches, you are ne!er far from
depository ser!ices of Reli"are#
(*
Reli"are3s depository ser!ice offers you a secure, con!enient, paperless and cost effecti!e way to
keep track of your in!estment in shares and other instruments o!er a period of time, without the
hassle of handlin" physical documents# Mour DP account with us takes care of your depository
needs like demateriali6ation, re8materialisation, transfer and pled"in" of shares, stock lendin"
and borrowin"#
Mour demat account is safe and absolutely secure in our hands, e!ery debit instruction is
e+ecuted only after its authenticity is established#
5ur hi8tech in8house capabilities cater to the needs of software maintenance, database
administration, network maintenance, backups and disaster reco!ery# This e+tra co!er of
security has "ained the trust of our clients
COMMODITIESAH
Intr1)u(t&1n
'e at Reli"are belie!e in pro!idin" independent research for clients to make in!estment
decisions, with strict emphasis on self8re"ulation, a!oidin" possible conflict of interest in
obecti!ity#
Varied research reports are prepared on different cate"ories of commodities#
R!p1rts 1n M!ta%s A
• Daily Market ,ommentary on e+chan"e turno!er alon" with turno!er of top traded
commodities? national and international news update on commodities#
• Daily Research Reports on metals and ener"y#
((
• 2!enin" ,apsule on 4M2 stocks, -upport, Resistance and market outlook, Daily
2conomic releases#
• 'eekly 2conomic ,alendar
R!p1rts 1n A'r&(u%tur! A
• Daily -pot Market 5!er!iew on spot market price trends, top traders outlook and
important news with re"ard to particular commodities#
• Daily Report on a"ri8commodities
INSURANCE
Intr1)u(t&1n
Reli"are Insurance :rokin" 4imitedDRI:4E, a subsidiary of Reli"are 2nterprises 4imited
with a mission to create and institutionali6e an ethical, process dri!en client centric approach
backed by the ri"ht e+pertise, sharp insi"hts and inno!ation, benchmarked a"ainst "lobal best
practices# 'e en!isa"e to become IndiaBs most credible, trusted and holistic multi brand
Insurance solutions partner#
Reli"are Insurance :rokin" 4imited DRI:4E, a Reli"are 2nterprises 4imited !enture is one of
IndiaBs leadin" insurance brokin" firms, with one of the lar"est retail networks in the
country# The company holds a composite brokerBs license operatin" in the 4ife, $on8life and
Reinsurance domains#
(<
As part of its recent initiati!es the "roup has also started e+pandin" "lobally# Reli"are has
also successfully partnered with Ae"on, one of the "lobal leaders to launch 4ife Insurance
and Mutual fund products in India#
RI:4 not only pro!ides customi6ed solutions to indi!idual clients but also to some of the
leadin" corporate houses and institutions across the country#
True to its spirit, the company proacti!ely represents and champions the interests of its
clients tirelessly to leadin" insurance companies# 'ithin a short span of time we ha!e built a
close relationship with all the leadin" insurance companies in the country# 5ur team across
the country is dri!en by the core philosophy of creatin" and deli!erin" !alue to its
customers# 5ur stren"ths are a team of passionate professionals, a robust IT infrastructure
and stron" risk analysis teams adept at identifyin" ; analy6in" your risks and pro!idin" you
with tailor made solutions#
In!st"!nt 9an$&n'
'e pro!ide inno!ati!e, inte"rated and best8fit solutions to our corporate customers# It is our
continuous endea!or to pro!ide !alue enhancement throu"h di!erse financial solutions on an
on"oin" basis, throu"h offerin"s like ,orporate Debt, Pri!ate 27uity, IP5, 2,:, .,,:,
GDRKADR etc#
In!st"!nt 9an$&n' ?&t# R!%&'ar! 122!rs t#! 21%%1?&n' s!r&(!sA
C1rp1rat! F&nan(!
'e focus on findin" ri"ht and rele!ant partners for our clients, who not only help in addin" !alue
but also impro!e the future !aluation of the or"ani6ation# 'e speciali6e in structured financin"
and pro!idin" ad!isory ser!ices related to financial plannin", modelin" and ad!isin" on financial
(>
re7uirements#
C1rp1rat! 2&nan(! pr1)u(ts 122!r!) /, usA P%a(!"!nt 12 D!/t
• -yndication of Domestic 4oan K .orei"n ,urrency 4oan
• -ecuritisation
• Debt -wap ; 4oan Restructurin"
• -hort Term ,orporate Debt
• 'orkin" ,apital D,ash ,redit ; -hort term 4oanE
• ,apital Market Instruments
• 5!erseas Ac7uisition
P%a(!"!nt 12 EIu&t, CPr&at! EIu&t,E
• :oth for listed and unlisted companies
M!r(#ant 9an$&n'
• IP5K.P5KRIG1T-
• Mer"ers ; Ac7uisitions
• ,orporate Ad!isory -er!ices
• ADRKGDRK.,,:
• :uy back of shares
(9
Reli"are -ecurities 4imited DR-4Eis a leadin" e7uity and securities firm in India# The
company currently handles si6eable !olumes traded on $-2 and in the realm of online tradin"
and in!estments it currently holds a reasonable share of the market# The maor acti!ities and
offerin"s of the company today are 27uity brokin", Depository Participant -er!ices, Portfolio
Mana"ement -er!ices, Institutional :rokera"e ; Research, In!estment :ankin" and ,orporate
.inance# To broaden the "amut of ser!ices offered to its in!estors, the company has also recently
un!eiled a new a!atar of itBs online in!estment portal armed with a host of re!olutionary features
R-4 is a member of the $ational -tock 2+chan"e of India, :ombay -tock 2+chan"e of India,
Depository Participant with $ational -ecurities Depository 4imited and ,entral Depository
-er!ices DIE 4imited, and -2:I appro!ed Portfolio Mana"er
Int!rnat&1na% A)&s1r,AHInternational Ad!isory .und Mana"ement -er!ices DA.M-E 8 A
new hori6on for international in!estments#
'e pro!ide our wealth clients an opportunity to in!est in international financial instruments
Dcurrently limited to the &-E#
27uities, Mutual .unds and Debts are some of the key instruments a!ailable and the clients ha!e
the option to choose from !arious asset allocation modules#
W#, In!st O!rs!asJ
 portfolio di!ersification
 Global outreach of opportunities
(A
 Pre8appro!ed route for resident indi!iduals to in!est D1ealthy Go!t# Patrona"e and
fa!orable re"ulatory de!elopmentsE#
C1nta(t In21r"at&1n
!ishal#mulchandaniPreli"are#in
www#reli"areonline#com
www#reli"are#in
'ebsite httpNKKwww#reli"are#in
Inst&tut&1na% 9r1$&n' S!r&(!s
The mission of this di!ision is to institutionali6e and implement a process dri!en approach to
cater to the needs of leadin" corporate houses and institutions#
The di!ision would like to be seen as a one stop in!estment "ateway and knowled"e repository
for its clients ser!icin" their uni7ue and sophisticated needs#
The di!ision is structured as a separate -:& and is housed out of Mumbai, manned by a small
yet fleet footed and e+tremely skilled "roup of top notch professionals drawn from the best in the
industry#
The key hi"hli"hts of our ser!ice platter areN
• 1i"hly skilled, dedicated dealin", research and sales teams
(C
• Dealin" capabilities on the $-2, :-2 and in the cash and deri!ati!es se"ment
• In8depth, detailed and insi"htful co!era"e of more than A) stocks across di!erse sectors#
The sectors co!ered are .M,G, 1otels, Media, Pharma, Auto, ,ement, -teel pipes,
4o"istics, Telecom, ,onstruction and much more#
5ur ,urrent clientele includes some maor domestic Mutual .unds, Insurance ,ompanies, :anks
and .II3s
9!n!2&ts 12 )!p1s&t1r,AH
 Immediate transfer of securities?
 Immediate transfer of securities?
 $o stamp duty on transfer of securities?
 2limination of risks associated with physical certificates such as bad deli!ery, fake
securities,etc#?
 Transmission of securities is done by DP eliminatin" correspondence with companies?
 ,on!enient method of consolidation of foliosKaccounts?
 1oldin" in!estments in e7uity, debt instruments and G8-ecs in a sin"le account?
 faster settlement cycle
 faster disbursement of non cash corporate benefits like ri"hts, bonus, etc
 reduction in handlin" of hu"e !olumes of paper#
Fa(&%&t&!s 122!r!) /, )!p1s&t1r, s,st!"
 Demateriali6ation i#e#, con!ertin" physical certificates to electronic form?
 Remateriali6ation i#e#, con!ersion of securities in demat form into physical certificates?
(@
 2lectronic settlement of trades in stock e+chan"es connected to $-D4?
 .ree6in" of demat accounts, so that the debits from the account are not permitted?
 $omination facility for demat accounts?
 -er!ices related to chan"e of address?
 2ffectin" transmission of securities?
D!p1s&t1r, s,st!" sa2!t, 2!atur!s
• -trict norms for becomin" a depository participant DDPE, $et worth criteria, -2:I appro!al
etc# is mandatory#
• DP#These in!estors can transfer their holdin"s to an account held with another DP#
• ,ompulsory internal audit of operations of DP by practicin" company secretary or chartered
accountant e!ery 7uarter#
• Various procedures for backup and safekeepin" of data at all le!els#
D!p1s&t1rsAH
There are two depositories in IndiaN8
*# $ational -ecurities Depository 4imitedD$-D4E#
(# ,entral Depository -er!icesDIndiaE4imitedD,D-4E
9ASIC SERVICES
&nder the pro!isions of the depositories Act,$-D4 pro!ides !arious ser!ices to in!estors and
other participants in the capital market like,
• Accounts maintenance
• Dematerili6ation
(G
• Rematerili6ation
• Market transfers
• 5ff8market transfers
• Inter8depository transfers
• ,orporate actions
• Transmission
• Auction
A((1unt "a&nt!nan(!AH
5penin" of account
Just as in a bank, openin" an account is the first step that an in!estor intends to hold scrips in
demat form in the depository system# The in!estor can open account with Reli"are#An in!estor
may open an account with se!eral DPs or he may open se!eral accounts with a sin"le DP#
T,p!s 12 a((1unt
5n this basis, depository account of !arious market participants may be
cate"ori6ed into the followin" typesN8
DaE :eneficiary Account
DbE ,learin" Member Account
DcE Intermediary Account
CaE 9!n!2&(&ar, A((1untA
This is an account opened by in!estors to hold their securities in demateriali6ed form with a
depository and to settle the transactions of sale and purchase of securities in book8entry form
throu"h the depository system# An account holder is le"ally entitled for all ri"hts and liabilities
attached to the securities Di#e#, e7uity shares, debentures, "o!ernment securities, etc#Eheld in that
<)
account# Therefore, the account is called /beneficial owner account0 also#.or the purpose of
!erification, all in!estors ha!e to submit the followin" documents alon" with the prescribed
account openin" form#
*# Proof of Identity in the form of applicant3s si"nature and photo"raph authenticated by an
e+istin" account holder or by applicant3s bank
(# Proof of residence in the form of ration card, passport, election !otin" card, income ta+
PA$ card, dri!in" license, bill for electricity or "as, etc# This is re7uired to confirm an
ascertain the correct identity and establish correct address of the account holder#
<# Passport8si6e photo"raph#
After the form is filled and aKc is opened, a client master list is "i!en to the client that is the copy
of the aKc opened alon" with the client id, DP ID no# The client ID no# and DP Id no#
C/E C%!ar&n' M!"/!r A((1untA
Member brokers of those stock e+chan"es which ha!e established electronic connecti!ity with
$-D4 need to open a clearin" member account, with Reli"areD DP of his choiceE, to clear and
settle trades in the demat form# This account is meant only to transfer shares to and recei!e
shares from the clearin" corporationK house and hence, the member broker does not ha!e any
ownership DbeneficiaryE ri"hts o!er the shares held in such an account#
*# All members of a stock e+chan"e popularly known as brokers are clearin" members?
(# ,ustodians who are permitted by the stock e+chan"e to act as a clearin" member#
5nce these details are entered in the system, a /,learin" Member :usiness Partner0 identity
number is "enerated D,M8:P8IDE# 'ith this ID, the account "ets acti!ated#
<*
C(E Int!r"!)&ar, A((1untA
Any person desirin" to act as an appro!ed BintermediaryB for stock lendin" and borrowin" needs
to open an intermediary account with any DP of his choice# As per -2:I Re"ulations on stock
lendin" and borrowin", only a 7ualified intermediary can lend and borrow stocks from clients#
This intermediary borrows from lenders and lends to borrowers# Intermediaries re"istered with
-2:I as appro!ed intermediary account with Reli"are Da DP of its choiceE, for e+ecutin" stock
lendin" and borrowin" transactions made throu"h them# An intermediary account may be opened
only after obtainin" re"istration from -2:I under an appro!ed -tock 4endin" -cheme, and
"ettin" the appro!al of the depository for openin" the account# The intermediary does not ha!e
any ownership DbeneficiaryE ri"hts o!er the shares held in such an account# An aKc can ha!e
ma+imum three oint holders# 1olders may be more than three after followin" some instructions
"i!en by -2:I# There is separate aKc of each holder#
Various ser!ices offered by DPs with respect to these accounts are as followsN
Fr!!G&n' 12 A((1untsA
Account free6in" means suspendin" any further transaction from the depository account till the
account is de8fro6en# A depository account maintained with a DP can be fro6en if the DP
recei!es a written instruction in prescribed form from the client# A fro6en account can be de8
fro6en or re8acti!ated if the client submits written instruction in prescribed form to the DP#
N1"&nat&1nA
A client can make a nomination of his account in fa!our of any person by filin" the nomination
form with his DP# -uch nomination is considered to be conclusi!e e!idence of the account
holderBDsE disposition in respect of all the securities in the account for which the nomination is
made#
C#an'! &n A))r!ssA
<(
The client can chan"e his address by submittin" the chan"es in writin" to the DP# The chan"es
con!eyed to the DP will be automatically communicated to the companies in which he is holdin"
shares in dematerialised form#
9an$ A((1unt D!ta&%sA
Details of bank account of the clientN8
*# G8di"it code number of the bank and branch appearin" on the MI,R che7ues issued by the
bank ha!e to"i!en to the DP at the time of account openin"#
(# ,ompanies use this information for printin" them on di!idendKinterest warrants etc# to
pre!ent its misuse
C1ns1%&)at&1n 12 A((1untsA
-ome clients could ha!e opened multiple accounts to dematerialise their shares held in multiple
combinations ; se7uence of names# 1owe!er, they may not need so many accounts after they
ha!e dematerialised their shares and may want to brin" all their shareholdin"s into one or fewer #
<<
DEMATERIALIFATION
Demateriali6ation is the process by which physical certificates of an in!estor are con!erted to
e7ui!alent number of securities in electronic form and credited in the in!estor3s account with his
DP#
Demat account allows you to buy, sell and transact shares without the endless paperwork and
delays# It is also safe, secure and con!enient#
'hat is De8mat accountI
Just as you ha!e to open an account with a bank if you want to sa!e your money, make che7ue
payments etc, you need to open a demat account if you want to buy or sell stocks# -o it is ust
like a bank account where actual money is replaced by shares#
.or e+ampleN8
4et3s say your portfolio of shares looks like thisN8
>) 8 of Infosys#
(9 8 of 'ipro
>9 8 of 144 and
*)) 8 of A,,#
All these will show in your demat account# -o you donBt ha!e to possess any physical certificates
showin" that you own these shares# They are all held electronically in your account# As you buy
and sell the shares, they are adusted in your account# Just like a bank passbook or statement#
Is a demat account a mustQ
$owadays, practically all trades ha!e to be settled in dematerialised form# Althou"h the market
<>
re"ulator, the -ecurities and 2+chan"e :oard of India D-2:IE, has allowed trades of upto 9))
shares to be settled in physical form, nobody wants physical shares any more# -o a demat
account is a must for tradin" and in!estin"#
'hy dematQ
The demat account reduces brokera"e char"es, makes pled"in"Khypothecation of shares easier,
enables 7uick ownership of securities on settlement resultin" in increased li7uidity, a!oids
confusion in the ownership title of securities, and pro!ides easy receipt of public issue
allotments#
It also helps you a!oid bad deli!eries caused by si"nature mismatch, postal delays and loss of
certificates in transit# .urther, it eliminates risks associated with for"ery#
you can check on your holdin"s, transactions and status of re7uests throu"h the net bankin"
facility
Documents re7uired
1ere is a broad list Dyou wonBt need all of them thou"hEN
R PA$ card
R VoterBs ID
R Passport
R Ration card
R Dri!erBs license
R Photo credit card
R 2mployee ID card
R :ank attestation
<9
C#ar'!sAH
Account8openin" fee
Dependin" on the DP, there may or may not be an openin" account fee# Pri!ate banks, such as
I,I,I :ank,Indiabulls ,1D., :ank and &TI :ank, do not ha!e one# 1owe!er, players such as
%ar!y ,onsultants and the -tate :ank of India do so# :ut most players le!y this when you re8
open a demat account, thou"h the -tock 1oldin" ,orporation offers a lifetime account openin"
fee, which allows you to hold on to your demat account o!er a lon" period# This fee is
refundable#
Annual maintenance fee
This is also known as folio maintenance char"es, and is "enerally le!ied in ad!ance#
,ustodian fee
This fee is char"ed monthly and depends on the number of securities Dinternational securities
identification numbers S I-I$E held in the account# It "enerally ran"es between Rs )#9 to Rs *
per I-I$ per month# DPs will not char"e custody fee for I-I$ on which the companies ha!e paid
one8time custody char"es to the depository#
Transaction fee
The transaction fee is char"ed for creditin"Kdebitin" securities to and from the account on a
monthly basis# 'hile some DPs, such as -:I, char"e a flat fee per transaction, 1D., :ank and
I,I,I :ank pe" the fee to the transaction !alue, subect to a minimum amount# The fee also
differs based on the kind of transaction Dbuyin" or sellin"E# Demateriali6ation normally takes
about *8( week#
<A
REMATERIALIFATION
Rematerili6ation is the e+act re!erse of demateriali6ation# It is the process by which a client
can "et his electronic holdin"s con!erted into physical certificates# It refers to the process of
issuin" physical securities in place of the securities held electronically in book8entry form
with a depository#
&nder this process, the depository account of a beneficial owner is debited for the e7ui!alent
number of securities isKare issued# The client has to submit the rematerili6ation re7uest to
the DP with whom he has an account#
T A client can rematerialise his dematerialised holdin"s at any point of time#
T Therematerialisation process is completed appro+ *) days#
T The securities sent for rematerialisation cannot be traded#
Mar"in Tradin"N Introduction
Ima"ine thisN youBre sittin" at the blackack table and the dealer throws you an ace# MouBd lo!e to
increase your bet, but youBre a little short on cash# 4uckily, your friend offers to spot you U9) and
says you can pay him back later# Temptin", isnBt itQ If the cards are dealt ri"ht, you can win bi"
and pay your buddy back his U9) with profits to spare# :ut what if you loseQ $ot only will you
be down your ori"inal bet, but youBll still owe your friend U9)# :orrowin" money at the casino is
like "amblin"8on8steroidsN the stakes are hi"h and your potential for profit is dramatically
increased# ,on!ersely, your risk is also increased#
O22 "ar$!t tra)!rs
<C
Tradin" in dematerialised securities is 7uite similar to tradin" in physical securities# The maor
difference is that at the time of settlement, instead of deli!eryKreceipt of securities in the physical
form, the same is affected throu"h account transfers#
Trans"&ss&1n
5ne of the lesser8known but widely e+perienced problems with respect to dealin" in share
certificates is transmission of shares# The ,ompanies Act distin"uishes transmission of shares
from transfer of shares# 'hile transfer of shares relates to a !oluntary act of the shareholder,
transmission is brou"ht about by operation of law# The word BtransmissionB means de!olution of
title to shares otherwise than by transfer#
2+ampleN8 de!olution by death, succession, inheritance, bankruptcy, marria"e, etc#
ACCOUNT TRANSFER
The clients send deli!ery instructions to the DP#A form is filled alon" with the specifications of
the shares, which ha!e to be transferred# These clients re"ularly purchase and sell securities#
Account transfer can be off8market or on8market# .irst Vcaptured3 then Vin transit to $-D43 and
lastly Vaccepted by $-D43 is shown on the forms#
Tradin" in :-2N8
The software used is :ombay 5n 4ine Tradin" D:54TE#The inde+ used is -ense+ i#e# sensiti!ity
inde+# .ollowin" items are shown on the :54T screen#
• 5rder entryN shows the !olume of transactions entered Din lacsE
<@
• TouchlineN the current rate of the scrip mentioned#
• Market lot#
• ,odeN This code no# is assi"ned by :-2 for identification of each scrip#
• -crip "roupN 5n :-2 securities are classified into "roups like :*, A etc# These
"roups are assi"ned on the basis of different time period on which they were
declared for demat#
• The ne+t line is for order placement in which the 7uantity to be bou"ht and sold and the price
is mentioned in the Vretain till bo+3#
• 'ith the order client, no# is mentioned# 5ne can also see the net position and the a!era"e rate
of particular scrip#
Tradin" in $-2
The software used is $ational 2+chan"e for Automated Tradin" D$2ATE#The inde+ used is
$I.TM D$ational Inde+ of .ifty ,ompaniesE#There are about G)) scrips listed on this e+chan"e#
The screen appears as followsN
• -ellin" price i#e# the price at which $-2 is willin" to sell alon" with !olumeK7uantity of
transaction#
• :uyin" price i#e# the price at which $-2 is willin" to buy alon" with !olumeK7uantity of
transaction#
• Price shown in red rectan"le denotes a decrease in the price of securities#
• Price shown in blue rectan"le denotes increase in the price of securities#
• 1i"hest and lowest price#
<G
S12t?ar! t11%s
• Tradin" confirmation slip
• Place order window
• Modification and cancellation of bid
Tra)&n' "!(#an&s"
Tradin" in 27uity Deri!ati!e Instruments has commenced in India in a separate se"ment of
e+istin" stock, e+chan"es known as BDeri!ati!es -e"mentB# Thus, for all practical purposes, both
the parties to an 27uity deri!ati!e Instruments contract would be assured that the obli"ations of
the other party would be met 8either by the party itself or, in the e!ent of default on the party or
the party, by the ,learin" ,orporation#
• A ,lient can trade in 27uity Deri!ati!e instruments only throu"h a Tradin" Member, of the
e+chan"e# The -ettlement DateK2+piry Date adopted by :-2 and $-2 is the last Thursday
of a ,ontract Month# In both :-2 and $-2, the 27uity Deri!ati!e Instruments contracts
will ha!e a ma+imum of three month tradin" cycle8the near month DoneE, the ne+t month
DtwoE and the far month DthreeE# Thus, in Au"ust ())G, one would be able to enter into
futures contracts for the months of Au"ust ())G, -eptember ())G and 5ctober ())G# 5n
(@th Au"ust, ())G Dlast Thursday of Au"ust ())GE the 27uity Deri!ati!e Instruments
contracts for Au"ust ())G series will be finally settledKwill e+pire and thereafter tradin" in
$o!ember ())G series will start#
• 2!ery ,lient is re7uired to pay an initial mar"in to the Tradin" MemberK,learin" Member at
the time of enterin" into an 27uity Deri!ati!e Instruments contract# -uch a mar"in is
calculated by usin" -oftware called B-tandard Portfolio Analysis of RiskB D-PA$E# -PA$
>)
calculates risk arrays for all the open positions on an o!erall basis and "i!es the output in the
form of a risk parameters file# This risk parameters file is made a!ailable to all the
participants of Deri!ati!es -e"ment# Members and ,lients use the data from -PA$ risk file,
to"ether with their position data, to calculate -PA$ mar"in re7uirements on their respecti!e
positions on daily basis# -PA$ calculates the mar"in by determinin" the worst possible loss
usin" *A risk scenarios# The ,lients pay the deficit mar"in to, or recei!e the refund of e+cess
mar"in from, the Tradin" MemberK,learin" Member on daily basis#
• payRs# () to the ,learin" 1ouse# The position for the subse7uent days up to March <*
would be as followsN
Assumed Daily -ettlement Price
DRs#E
March <) *,><9 Recei!e Rs# <9
March <* *,><) Pay Rs#9
9u, 1r s!%% 1r)!rsAH
The system functions on a price8time priority basis# The system arran"es order in the priority of
price and within price by time# If a buy of *)) shares of Reliance at Rs#<)) is placed by one
in!estor and another in!estor has placed a buy order for *)) shares of Reliance at Rs#<*) then
anybody who places a sell order in Reliance will be first matched with the second in!estors he is
offerin" a better price# This is price priority# If both the 7uotes are at suppose Rs#<)) then any
sell order, which comes under the system at this price, will be matched a"ainst the first order#
This is time priority#
2!ery buyer has to place his order on system and the system will automatically match the order
>*
with the best sell order a!ailable in the system at that point of time# If there is no order e+istin" at
that time, the system will store the order books until such time a suitable order materiali6es# This
is known as the bid order# A bid can be modified or cancelled before traded# 1ence,
manipulation of price is possible# After <N<) p#m#, all untraded bids are automatically cancelled#
The icon for buy is DWE and sell is D8E# This is often used terminolo"y#
'hile e+ecutin" the order, information entered is
aE Type of transaction Dbuy or sellE
bE -crip name
cE Market price
dE 5rder no#
eE ,lient no#
.I.5 Dfirst in first outE method is used to determine the !alue of any item mo!in" out of a stock
aKc at any point of time as demat securities are fun"ible# It implies that out of e+istin" holdin",
the item that first entered into the aKc is deemed to be the first sold out#
# The contents of the net position areN
• ,lient no#
• -ecurities
• Xuantity bou"ht
• Xuantity sold
• $et position DWK8E
>(
• .unds receipt DWEKpayD8E
• Tradin" a!era"e
• ,urrent closin" rate
AUCTION
Auction is a mechanism utili6ed by the e+chan"e to fulfill the obli"ation to a counter party
member when a member fails to deli!er "ood securities or make the payments#
Throu"h auction, the e+chan"e arran"es to buy "ood securities and deli!er them
to the buyin" broker or arran"es to reali6e the cash and pay it to the sellin"
broker# Three factors primarily "i!e rise to an auctionN
• -hort deli!eries
• &nrectified bad deli!ery
• &nrectified company obection

S#1rt )!%&!r,A
This refers to a situation where a client, who has sold certain shares durin" a settlement cycle,
fails to deli!er the shares to the member either fully or partly#
9a) )!%&!r,A
-2:I has formulated uniform "uidelines for "ood and bad deli!ery of documents# :ad deli!ery
may pertainN
><
• To transfer deed bein" torn, mutiliated, o!erwritten, defaced
• If there are spellin" mistakes in the name of the company or the transferor
• 2rasure or crossin" out in the characters of folio no#, distincti!e no# ran"e or certificate no#
• In case of compulsory demat securities physical securities are sent#1owe!er, error in folio
no# upto three characters is allowed and physical securities are transferred uptil G) days of
bein" included in demat list# After that, any transfer in physical form will be bad deli!ery#
All bad deli!eries ha!e to be reported to the ,1 Dclearin" houseE by the buyin" broker within
>@ hours of recei!in" the payout, "enerally on .riday#
The deli!erin" broker picks up bad deli!eries, "enerally on -aturday# They are to be rectified
or replaced by the deli!erin" broker within >@ hours, "enerally on the followin" Monday# All
the rectified or replaced bad deli!eries are paid out to the recei!in" broker "enerally on
wednesday#
C1"pan, 1/0!(t&1nA
'hen the securities are recei!ed for transfer, they are done as per the pro!isions of the law# In
case transfer does not take place due to si"nature difference or shares are fake, for"ed, or stolen,
the company returns the securities "i!in" the details of the "round under which the transfer could
not be affected# This is known as the company obection#
'hen a company obection for transfer is recei!ed, that errorKdiscrepancies may be corrected by
the transferor DsellerE either directly or throu"h the broker for replacement with "ood securities#
If errors are not rectified or replaced, one has to recourse to the seller and his broker throu"h the
stock e+chan"e to "et back the money# 1owe!er, if the transaction was directly with the seller,
>>
then the matter is to be settled directly#
FINANCIAL DERIVATIVES
.inancial deri!ati!es are not new, they ha!e been around for years# A description of the first
known options contract can be found in Aristotle3s writin"s# 1e tells the story of Thales, a poor
philosopher from Mellitus who de!eloped a /financial de!ice, which in!ol!es a principle of
uni!ersal application#0 People repro!ed Thales, a poor philosopher sayin" that his lack of wealth
was proof that philosophy was a useless occupation and of no practical !alue# :ut Thales knew
what he was doin" and made plans to pro!e to others his wisdom and intellect#
Thales had "reat skill in forecastin" and predicted that the oli!e har!est would be e+ceptionally
"ood ne+t autumn# ,onfident in his prediction, he made a"reements with area oli!e8press owners
to deposit what little money he had with them to "uarantee him e+clusi!e use of their oli!e
presses when the har!est was ready# Thales successfully ne"otiated low prices because the
har!est was in the future and no one knew whether the har!est would be plentiful or pathetic and
because the oli!e8press owners were willin" to hed"e a"ainst the possibility of a poor yield#
Aristotle3s story about Thales ends as one mi"ht "uessN /'hen the har!est8time came, and many
YpressesZ were wanted all at once and of a sudden, he let them out at any rate which he pleased,
and made a 7uantity of money# Thus so Thales e+ercised the first known options contracts some
(9)) years a"o# 1e was not obli"ed to e+ercise the options# If the oli!e har!est had not been
"ood, Thales could ha!e let the option contracts e+pire unused and limited his loss to the ori"inal
price paid for the options# :ut as it turned out, a bumper crop came in, so Thales e+ercised the
options and sold his claims on the oli!e presses at a hi"h profit#
5ptions are ust one type of deri!ati!e instrument# Deri!ati!es, as their name implies, are
>9
contracts that are based on or deli!ered from some underlyin" asset, reference rate, or inde+#
Most common financial deri!ati!es, described later, can be classified asN
Futur!s
F1r?ar)s
Opt&1ns
Three primary forces brou"ht about the e+plosi!e use of financial deri!ati!e products in recent
yearsN
More !olatile markets
Dere"ulation
$ew technolo"ies
Deri!ati!es are risk8shiftin" de!ices# Initially? they were used to reduce e+posure to chan"es in
forei"n e+chan"e rates, interest rates, or stock inde+es#
The key to understandin" deri!ati!es is the notion of a premium# -ome deri!ati!es are compared
to insurance# Just as you pay an insurance company a premium in order to obtain some
protection a"ainst a specific e!ent, there are deri!ati!e products that ha!e a payoff contin"ent
upon the occurrence of some e!ent for which you must pay a premium in ad!ance
DERIVATIVES DEFINED
A deri!ati!e is an instrument Dsecurity or contractE that deri!es its !alue from the !alue of an
underlyin" asset Dsecurity or a commodityE#
.or e+ample, wheat farmers may wish to sell their har!est at a future date to eliminate the risk of
achan"e in prices by that date# -uch a transaction is an e+ample of a deri!ati!e# The price of this
>A
deri!ati!e is dri!en by the spot price of wheat, which is the underlyin"#
In the Indian conte+t the -ecurities ,ontracts DRe"ulationE Act, *G9A defines deri!ati!e to
include8
*# A security deri!ed from a debt instrument, share, and loan whether secured
or unsecured, risk instrument or contract for differences or any other form of security#
(# A contract that deri!es its !alue from the prices, or inde+ of prices, of
underlyin" securities#
PRODUCTSK PARTICIPANTS AND FUNCTIONS
Deri!ati!e contracts ha!e se!eral !ariants# The most common !ariantsare N
F1r?ar)s
Futur!s an)
Opt&1ns.
The followin" are the three broad cate"ories of participantsN
H!)'!rs
Sp!(u%at1rs
Ar/&tra'!urs
H!)'!rsA
They face risk associated with the price of an asset# They use futures or options markets to
reduce or eliminate this risk#
Sp!(u%at1rsA
They are based on future mo!ements in the price of an asset# .utures and options can "i!e them
e+tra le!era"e? i#e#? they can increase both the potential "ains and potential losses in a speculati!e
>C
!enture#
Ar/&tra'!rsAThey are in business to take ad!anta"e of a discrepancy between prices in two
different markets#
The functions performed areN8
Prices in an or"ani6ed deri!ati!es market reflect the perception of market participants about the
future and lead the prices of underlyin" to the percei!ed future le!el# The prices of deri!ati!es
con!er"e with the prices of the underlyin" at the e+piration of the deri!ati!es contract# Thus,
deri!ati!es help in disco!ery of future as well as current prices#
• The deri!ati!es market helps to transfer risks from those who ha!e them but may not like
them to those who ha!e an appetite for them#
• Deri!ati!es due to their inherent nature are linked to the underlyin" cash markets# 'ith the
introduction of deri!ati!es, the underlyin" market witnesses hi"h tradin" !olumes because of
participation by more players who would not otherwise participate for lack of an arran"ement
of transfer risk#
• -peculati!e trades shift to a more controlled en!ironment of deri!ati!es market# In the
absence of an or"ani6ed deri!ati!es market, speculators trade in the underlyin" cash market#
• An important incidental benefit that flows from deri!ati!es tradin" is that it acts as a catalyst
for new entrepreneurial acti!ity# The deri!ati!es ha!e a history of attractin" many bri"ht,
creati!e, well8educated people with an entrepreneurial attitude# They often ener"i6e others to
create new businesses, new products and new employment opportunities8the benefits of
which are immense#
• Deri!ati!es markets help increase sa!in"s and in!estment in the lon" run# Transfer of risk
>@
enables market participants to e+pand their !olume of acti!ity#
FORWARD CONTRACTS
A forward contract is an a"reement to buy or sell an asset on a specified date for a specified
price# 5ne of the parties to the contract a"rees to buy the underlyin" asset on a certain specified
future date for a certain specified price# The other party a"rees to sell the asset on the same date
for the same price# 5ther contract details like deli!ery date, price, and 7uantity are ne"otiated
bilaterally by the parties to the contract# The forward contracts are normally traded outside the
e+chan"es#
F!atur!s
• They are bilateral contracts and hence e+posed to counter8party risk#
• 2ach contract is custom desi"ned, and hence is uni7ue in terms of contract si6e, e+piration
date and the asset type and 7uality#
• The contract price is "enerally not a!ailable in public domain#
• 5n the e+piration date, the contract has to be settled by deli!ery of the asset#
L&"&tat&1ns
DaE4ack of centrali6ation of tradin"
DbEIlli7uidity
DcE,ounter8party risk
FUTURES CONTRACTS
.utures markets were desi"ned to sol!e the problems that e+ist in forwards markets# A futures
contract is an a"reement between two parties to buy or sell an asset at a certain time in the future
at a certain price# The futures contracts are standardi6ed and e+chan"e traded# To facilitate
>G
li7uidity in the futures contracts, the e+chan"e specifies certain standard features of the contract#
It is a standardi6ed instrument that can be deli!ered, Dor which can be used for reference
purposes in settlementE and a standard timin" of such settlement# A futures contract may be
offset prior to maturity by enterin" into an e7ual and opposite transaction# More than GG= of
futures, transactions are offset this way#
Distinction between futures and forwards contracts
.orward contracts are often confused with futures contracts# The confusion is primarily because
both ser!e essentially the same economic functions of allocatin" risk in the presence of future
price uncertainty# 1owe!er futures are a si"nificant impro!ement o!er the forward contracts as
they eliminate counter8party risk and offer more li7uidity#
.utures .orwards
• Trade on an or"ani6ed e+chan"e 5T, in nature
• -tandardi6ed contract terms ,ustomi6ed contract
terms
• More li7uid 4ess li7uid
• Re7uires mar"in payments $o mar"in payment
• .ollows daily settlement -ettlement happens at the
end of period
9)
OPTION CONTRACTS
5ptions are fundamentally different from forward and futures contracts# An option "i!es the
holder of the option, the ri"ht to do somethin"# The holder does not ha!e to e+ercise this ri"ht# In
contrast, in a forward or futures contract, the two parties ha!e committed themsel!es to doin"
somethin"# 'hereas it costs nothin" De+cept mar"in re7uirementsE to enter into a futures
contract, the purchase of an option re7uires an upfront payment#
An option "i!es the holder the ri"ht to buy or sell a certain asset Dcalled the underlyin"E byKon a
certain date for a certain price#
T,p!s O2 Opt&1ns
Type8I
,all optionN
"i!es the holder the ri"ht to buy the underlyin" asset by a certain date for a certain price#
Put optionN
"i!es the holder the ri"ht to sell the underlyin" asset by a certain price#
Type8II
American optionN
can be e+ercised at any time up to the e+piration date#
2uropean optionN
can be e+ercised only on the e+piration date itself#
9*
Pr&"ar, 1pt&1n ar&!t&!s
:uyer of the option8lon" position
'riter K seller of the option8short position
St1($ 1pt&1nA
The underlyin" is a stockKshare# All numerical procedure in their simplest form are deri!ed for
these#
F1r!+ 1pt&1nA
,ontracts on forei"n currencies# 2ach contract is to buyKsell a certain 7uantum of the stipulated
currency#
In)!+ 1pt&1nsA
,ontracts where the underlyin" is the set of stocks that constitute a "i!en inde+# 2ach contract is
on a certain multiple of the inde+ !alue settled in cash on maturity#
Futur!s 1pt&1nA
&nderlyin" is a futures contracts# 2+ercise of a call option yields a lon" position in a futures
contract and some cash# 2+ercise of a put option yields a short position in a future contract and
some cash#
H1? Opt&1ns W1r$
*# 5ptions "i!e you the ri"ht to buy or sell an underlyin" instrument#
(# If you buy an option, you are not obli"ated to buy or sell the underlyin" instrument? you
simply ha!e the ri"ht to#
<# If you sell an option and the option is e+ercised, you are obli"ated to deli!er the underlyin"
asset DcallE or take deli!ery of the underlyin" asset DputE at the strike price of the option
9(
re"ardless of the current price of the underlyin" asset#
># 5ptions are "ood for a specified period of time, after which they e+pire and you lose your
ri"ht to buy or sell the underlyin" instrument at the specified price#
9# 5ptions when bou"ht are done so at a debit to the buyer#
A# 5ptions when sold are done so by "i!in" a credit to the seller#
C# 5ptions are a!ailable in se!eral strike prices representin" the price of the underlyin"
instrument#
@# The cost of an option is referred to as the option premium# The price reflects a !ariety of
factors includin" the current price of the underlyin" asset, the strike price of the option, the time
remainin" until e+piration, and !olatility#
G# 5ptions are not a!ailable on e!ery stock# There are appro+imately (,()) stocks with tradable
options# 2ach stock option represents *)) shares of a companyBs stock#
9<
CALL OPTION
*# ,all options "i!e traders the ri"ht to buy the underlyin" stock at the strike price until market
close on the <rd .riday of the e+piration month# A call option is In8The8Money DITME if its strike
price is below the current price of the underlyin" stock# A call option is out8of8the8money D5TME
if its strike price is abo!e the current price of the underlyin" stock# A call option is at8the8money
DATME if its strike price is the same as Dor close toE the current price of the underlyin" stock#
(# :uyin" ,alls 8 If bullish 8 belie!e the market will rise 8 buy D"o lon"E calls# :uyers ha!e
ri"hts# A call buyer has the ri"ht, but not the obli"ation, to buy the underlyin" stock at the strike
price until the e+piration date# If you buy a call option, your ma+imum risk is the money paid for
the option, the debit# The ma+imum profit is unlimited dependin" on the rise in the price of the
underlyin" asset# To offset a lon" call, you ha!e to sell a call with the same strike price to close
out the position# :y e+ercisin" a lon" call, you are choosin" to purchase *)) shares of the
underlyin" stock at the strike price of the call option#
<# -ellin" ,alls 8 If bearish 8 belie!e the market will fall 8 sell D"o shortE calls# -ellers ha!e
obli"ations# A call seller has the obli"ation to sell *)) shares of the underlyin" stock at the strike
price to the person to whom the option was sold, if that person chooses to e+ercise the call
option# -ellers ha!e obli"ations# If you sell a call option, your risk is unlimited to the upside# The
profit is limited to the credit recei!ed from the sale of the call# 'hen sellin" calls, make sure to
choose options with little time left until e+piration# ,all sellers want the call to e+pire worthless
so that they can keep the whole premium# To offset a short call, you ha!e to buy a call with the
same strike price to close out the position#
9>
PUT OPTION
*# Put options "i!e traders the ri"ht, but not the obli"ation, to sell the underlyin" stock at the
strike price until market close on the <rd .riday of the e+piration month# A put option is In8The8
Money DITME if its strike price is abo!e the current price of the underlyin" stock# A put option is
out8of8the8money D5TME if its strike price is below the current price of the underlyin" stock# A
put option is at8the8money DATME if its strike price is the same as Dor close toE the current price
of the underlyin" stock#
(# :uyin" Puts 8 If the options trader is bearish 88 i#e# belie!es the underlyin" stock or inde+ will
fall in price 88 the trader can buy D"o lon"E puts# 'hen the put is purchased, it is called an
openin" transaction# $ow, the buyer has ri"hts# A put buyer has the ri"ht, but not the obli"ation,
to sell the underlyin" stock at the strike price of the option until the e+piration date# .urthermore,
if a trader buys a put option, the risk of the trade e7uals the money paid for the option, or the
debit# The profit is e7ual to the fall in the price of the underlyin" asset# The profit will result if
the underlyin" security mo!es lower# The profit is limited because the underlyin" asset will not
fall below 6ero# .inally, to offset a lon" put, the trader will sell a put with the same terms Dstrike
price and e+pirationE to [close[ out the position# 5n the other hand, if the trader e+ercises a lon"
put, then he or she is sellin", or short, the underlyin" stock or inde+ at the strike price of the put
option#
<# -ellin" Puts 8 If the options trader is bullish 88 belie!es the market will rise 88 the trade can sell
D"o shortE puts# -ellers ha!e obli"ations# A put seller has the obli"ation to buy *)) shares Dper
optionE of the underlyin" stock at the put strike price# In other words, the option seller must be
99
ready to ha!e the stock [put[ to him or her# The put sellerBs risk is the drop in the stock price,
which is limited to the stock fallin" to 6ero# The profit e7uals the credit recei!ed from the sale of
the put# Put sellers often prefer options with little time left until e+piration because they want a
put to e+pire worthless# In that way, the seller keeps the entire premium#
FUTURES AND OPTIONS
5ptions are different from futures in se!eral interestin" senses# The option buyer pays for the
option in full at the time it is purchased# After this, he only has an upside# There is no possibility
of the options3 position "eneratin" any further losses to him Dother than the funds already paid
for the optionE# This is different from futures, which is free to enter into, but can "enerate !ery
lar"e losses# This characteristic makes options attracti!e to many occasional market participants,
who cannot put in the time to closely monitor their futures positions#
:uyin" put options is buyin" insurance# To buy put option on $ifty is to buy insurance, which
reimburses the full e+tent to which $ifty drops below the strike price of the put option# This is
attracti!e to many people#
INDE= DERIVATIVES
Inde+ deri!ati!es are deri!ati!e contracts, which deri!e their !alue from an underlyin" inde+#
The two most popular inde+ deri!ati!es are inde+ futures and inde+ options# Inde+ deri!ati!es
ha!e become !ery popular worldwide# The popularity of inde+ deri!ati!es are due to the
ad!anta"es they offerN
• Institutional and lar"e e7uity8holders need portfolio8hed"in" facility# Inde+8deri!ati!esare
9A
most suited to them and more cost8effecti!e than deri!ati!es based on indi!idual stocks#
Pension funds in the &- are known to use inde+ futures for risk hed"in" purposes#
• -tock inde+ is difficult to manipulate as compared to indi!idual stock prices, more so in
India, and the possibility of cornerin" is reduced# This is partly because an indi!idual stock
has a limited supply, which can be cornered#
• -tock inde+, bein" an a!era"e, is much less !olatile than indi!idual stock prices# This implies
much lower capital ade7uacy and mar"in re7uirements#
• Inde+ deri!ati!es are cash settled and hence do not suffer from settlement delays and
problems related to bad deli!ery, for"edKfake certificates#
FUTURES AND OPTIONS TRADING S>STEM
The futures and options tradin" system of $-2, called $2AT8.;5 tradin" system, pro!ides a
fully automated screen based for $ifty futures and options and stock futures and options on a
nationwide basis as well as online monitorin" and sur!eillance mechanism# It supports an order
dri!en market and pro!ides complete transparency of tradin" operations# It is similar to that of
tradin" of e7uities in the cash market se"ment#
Ent&t&!s In Tra)&n' S,st!"
There are four entities in the tradin" systemN
Tra)&n' "!"/!rA
Tradin" members are of $-2# They can trade either on their own account or on behalf of their
clients# The e+chan"e assi"ns a tradin" member ID to each tradin" member# 2ach tradin"
member can ha!e more than one user# The number of users allowed for each tradin" member is
9C
notified by the e+chan"e from time to time# 2ach user of a tradin" member must be re"istered
with the e+chan"e and is assi"ned a uni7ue user ID# The uni7ue tradin" member ID functions as
a reference for all ordersKtrades of different users# This ID is common for all users of a particular
tradin" member# It is the responsibility of the tradin" member to maintain ade7uate control o!er
persons ha!in" access to the firm3s user IDs#
C%!ar&n' "!"/!rA
,learin" members are members of $-,,4# They carry out risk mana"ement acti!ities and
confirmationKin7uiry of trades throu"h the tradin" system#
Pr12!ss&1na% (%!ar&n' "!"/!rA
A professional clearin" member is a clearin" member who is not a tradin" member# Typically,
banks and custodians become professional clearin" members, clear, and settle for their tradin"
members#
Part&(&pantA
A participant is a client of tradin" members like financial institutions# These clients may trade
throu"h multiple tradin" members but settle throu"h a sin"le clearin" member#
:A-I- 5. TRADI$G
The $2AT .;5 system supports an order dri!en market, wherein orders match automatically#
5rder matchin" is essentially on the basis of security, its price, time and 7uantity# All 7uantity
fields are in units and price in rupees# The lot si6e on the futures market is for ()) $ifties# The
9@
e+chan"e notifies the re"ular lot si6e and tick si6e for each of the contracts traded on this
se"ment from time to time# 'hen any order enters the tradin" system, it is an acti!e order# It
tries to find a match on the other side of the book# If it finds a match, a trade is "enerated# If it
does not find a match, the order becomes passi!e and "oes and sits in the respecti!e outstandin"
order book in the system#
5rder type and conditions
The system allows the tradin" members to enter orders with !arious conditions attached to them
as per their re7uirements# These areN
Day orderN
A day order, as the name su""ests is an order which is !alid for the day on which it is entered# If
the order is not e+ecuted durin" the day, the system cancels the order automatically at the end of
the day#
Good till cancelledN DGT,EN
A GT, order remains in the system until the user cancels it# ,ose7uently, it spans tradin" days if
not traded on the day the order is entered# The ma+imum number of days an order can remain in
the system is notified by the e+chan"e from time to time after which the order is automatically
cancelled by the system# 2ach day counted is a calendar day inclusi!e of holidays# The days
counted are inclusi!e of the day on which the order is cancelled from the system at the end of the
day of the e+piry period#
Goods till daysKdateNDGTDEN
A GTD order allows the user to specify the number of daysKdate till which the order should stay
in the system if not e+ecuted# The ma+imum days allowed by the system are the same as in GT,
9G
order# At the end of this dayKdate, the order is cancelled from the system# 2ach dayKdate counted
are inclusi!e of the dayKdate on which the order is placed and order is cancelled from the system
at the end of the dayKdate of the e+piry period#
Immediate or ,ancelNDI5,EN
An I5, order allows the user to buy or sell a contract as soon as the order is released into the
system, failin" which the order is cancelled from the system# Partial match is possible fo the
order, and unmatched portion of the order is cancelled immediately#
Market spreadKcombination order entryN
The $2AT .;5 tradin" system also enables to enter spreadKcombination trades# This enables
the user to input two or three order simultaneously into the market# These orders will ha!e the
condition attached to it that unless and until the whole batch of orders find a counter match, they
shall not be traded# This facilitates spread and combination tradin" strate"ies with minimum
price risk #
:asket tradin"N
In order to pro!ide a facility for easy arbitra"e between futures and cash markets, $-2
introduced basket8tradin" facility# This enables the "eneration of portfolio offline order files in
the deri!ati!es tradin" system and its e+ecution in the cash se"ment# A tradin" member can buy
or sell a portfolio throu"h a sin"le order, once he determines its si6e# The system automatically
works works out the 7uantity of each security to be bou"ht or sold in proportion to their wei"hts
in the portfolio#
A)
NEED OF INVESTMENT
In!estment acti!ity includes buyin" and sellin" or tradin" on money andKor promissory notes#
The obecti!es of in!estors can beN
T Income
T Appreciation of capital safty
• 4i7uidity
• 1ed"e a"ainst inflation
The mi+ of these obecti!es may also depend on the time frame of his in!estment#
• -hort8termKday8to8day tradin" "ains#
• -hort term capital "ains#
• 4on" term capital "ains#
-econdary market is the market where in!estors buy or sell securities in e+chan"e throu"h
brokersKsub brokers# -ettlement "uarantee is ensured for transaction on stock e+chan"es# If the
in!estor does not "et moneyKsecurities for whatsoe!er reason, then there is an institutional
arran"ement to settle his claims in the e+chan"e# If the brokers default, the in!estors can seek
protection from the In!estor Protection .und of the 2+chan"e#
-tock 2+chan"e means anybody or indi!iduals whether incorporated or not, constituted for the
purpose of assistin", re"ulatin" or controllin" the business of buyin", sellin" or dealin" in
securities# It is an association of member brokers for the purpose of self8re"ulation and
protectin" the interests of its members#
A*
• To know what "eo8political factors affected the marketplace up till <*
st
May#
• 1ow did the stock market react#
• Impact on !arious sectors#
• 1ow ,ommon Minimum Pro"ramme D,MPE affected the marketplace#
• 'here the in!estors should in!est now#
• To know about the !arious sectors3 outlook#
Methodolo"y
The inde+ is a market capitali6ation wei"hted inde+
-election ,riteria
-election of the inde+ set is based on the followin" criteriaN
1. ,ompanyBs market capitalisation rank in the uni!erse should be less than 9))
2. ,ompanyBs turno!er rank in the uni!erse should be less than 9))
3. ,ompanyBs tradin" fre7uency should be at least G)= in the last si+ months#
4. ,ompany should ha!e a positi!e net8worth#
A company which comes out with a IP5 will be eli"ible for inclusion in the inde+, if it fulfills
the normal eli"iblity criteria for the inde+ for a < month period instead of a A month period#
A(
WHERE TO LOOK NOWJ
O&% D GasH
The fundamentals of the Indian 5il ; Gas sector remain stron"# The refinin" mar"ins in the year
())G are e+pected to be 7uite hi"h# There is an e+pected increase in the demand of petrol, diesel
and 4$G in India with e+pected increase in the number of !ehicles in India# It was also helped
by the ban placed by the Indian "o!ernment on the import of kerosene# This will impro!e the
marketin" and o!erall mar"ins of the refineries as auto fuels pro!ide better mar"ins# India3s
marketin" se"ment was thrown open for pri!ate participation# Met the public sector undertakin"s
DP-&E seem to ha!e another *@8(> months of !irtual monopoly ahead of them as it is 7uite
e+pensi!e to set up retail an outlet which also re7uires time#
Thou"h the fundamentals of the sector are stron", the chan"e in the "o!ernment at the ,entre
puts a 7uestion mark on the policies "o!ernin" this sector# The maor worry points areN D*E $o
price hikes in auto fuels Dpetrol, dieselE and cookin" fuels Dkerosene, 4PGE, which affects the
company bottom8lines and D(E In spite of the hi"h crude oil ; product prices, no increase in
4PG8kerosene subsidy from the "o!ernment# The companies likely to be ad!ersely affected are
:P,4, 1P,4 and I5,8I:P which ha!e been asked to bear the marketin" costs# The
counters worth considerin" are 5$G,, Gail, I5,, IP,4 and MRP4#
S#&pp&n'L
-hippin" stocks ha!e been on a rollercoaster ride with shippin" rates risin", both in the dry bulk
and tanker se"ment# The hike in the dry8bulk rates were a natural off8shoot of the increased
demand from ,hina but the slowdown in the ,hinese demand has had an impact on the frei"ht
A<
rates# ,hina had been the maor factor for the sur"e in the frei"ht rates# It had also emer"ed as
the world3s second lar"est consumer of oil boostin" tanker rates# The slowdown in the o!erall
"lobal economy has also had a ne"ati!e bearin" on the shippin" rates in the past few months#
The rates are e+pected to stabili6e at the current le!els "i!en the fact that demand from ,hina
will "row but at a slower rate# $o additional tonna"e is e+pected to be added in the short run and
it looks like the worst in terms of declinin" tanker frei"ht rates may be o!er# -,I disin!estment
has been put in the cold stora"e due to the chan"e in the "o!ernment# The company bein" the
lar"est fleet owner in the country had to shel!e its plans to e+pand its fleet to make full use of the
boom in the frei"ht market# The company is plannin" to "o ahead with a plan to replace around
()8(9= of its tanker fleet within the ne+t few years# In!estors can continue to hold as well as
consider fresh buyin" in -,I, G2 -hippin" and Mercator 4ines while continue to hold Varun
-hippin" and ,oncor#
P#ar"a(!ut&(a%sL
M$, and domestic pharma companies acted as perfect defensi!es in the past two weeks of May,
"i!en the uncertainty in the markets# M$,3s are e+pected to launch more dru"s in ())G "i!en
the fact that India will become a re"ulated market# Indian companies ha!e been acti!ely
increasin" their research acti!ities and e+pandin" capacities in the wake of increased
opportunities, primarily throu"h e+ports# The total !alue of dru"s e+pected to "o off patent o!er
the ne+t fi!e years is o!er U *9 billion# 5pportunities ha!e been spotted in the "lobal "eneric
markets, with many dru"s "oin" off patent in the near future# ,ontract manufacturin" acti!ities
due to cheaper costs are also e+pected to shore up in the comin" years# 1owe!er, there are fears
of DP,5 returnin" with the chan"e in the "o!ernment# -ome "ood counters for buy and hold
A>
include Ranba+y, Aurobindo, :iocon, ,ipla, DR4, Di!is, Glenmark, IP,A, %rebs, -un Pharma#
In21r"at&1n T!(#n1%1',H
This is one sector which has the least interference from the "o!ernment# The new "o!ernment
does not aim at makin" any maor policy chan"es in this sector as it is in some of the other
sectors# The ta+ e+emptions were to be continued in the forthcomin" bud"et# The :P5 backlash
has died down considerably in April indicatin" the need for this economic rationale# .ew "ood
counters that may be considered for in!estin" are Infosys, 'ipro, -atyam, 1u"hes, I8.le+,
Infotech 2nterprises, Moser :aer, $IIT and Polaris#
9an$sH
The bankin" sector had "ood times until with the declaration of di!idend norms by the R:I,
many banks, particularly the P-& pack, witnessed a sharp fall in their stock prices# Accordin" to
these "uidelines, banks with net $PAs "reater than <= of the net assets or ,apital Ade7uacy
ratio lower than **= will not be able to declare di!idends without the prior permission of the
R:I# Moreo!er, the R:I has also capped the di!idend payout ratio at <<= for the banks who are
eli"ible for doin" so# These "uidelines will be helpful for all the banks in the medium to lon"
term as it will enable them to stren"then their balance sheets and prepare themsel!es for the
forthcomin" :asel II re"ime#
,onse7uently, not many P-& banks ha!e enou"h room for raisin" funds from capital markets#
4imitin" the .II holdin"s and the *)= cap on !otin" ri"hts will put further consolidation in the
sector under the carpet# If the "o!ernment doesn3t allow their holdin"s to fall below the 9*=
mark, additional funds will ha!e to be pumped in by the "o!ernment itself# In the ne+t (8< years,
as banks "row their balance sheets and :asel II norms need to be complied with, this will
definitely become an issue# 4ikelihood of risin" interest rates will also ha!e a ne"ati!e impact on
A9
the treasury holdin"s of banks#
Aut1"1/&%!sH
The outlook for the sector still remains "ood in the medium term# The easy loan schemes,
impro!ed roads, increased income and the effort to brin" in small cars at cheaper rates should
"i!e a boost to the industry# Tractor se"ment is likely to "et further impetus with a"riculture8
friendly policies of the new "o!ernment which is e+pected to enhance the rural disposable
income# Any incenti!e on the e+cise duty front will impro!e the reali6ations of the auto
manufacturers and is likely to be reflected in the "rowth of the auto companies# The only concern
here is the likelihood of increase in the interest rate in future that makes auto financin" an
e+pensi!e affair# Also the rise in oil prices mi"ht discoura"e the "rowth of two and four wheeler
se"ment# Good In!estment counters are M;M, Maruti, Tata Motors, 1ero 1onda, :aa Auto,
-undaram .asteners, 5ma+ Auto, :harat .or"e, Amtek and Ashok 4eyland#
P1?!rH
The Power sector has been hurt badly by the announcements in the ,ommon Minimum Pro"ram
D,MPE# An earlier re"ulation proposed a split in the transmission and distribution business of the
-2:3s and power distribution "rids were to be sold to pri!ate players# This was supposed to be
completed by June *) and has now been postponed# This meant that players like Reliance 2ner"y
and Tata Power, which would ha!e had access to newer markets in the country, would now "et
ad!ersely affected# These players had already planned to bid for power "rids when they were to
be sold and also proposed power plants in &#P#
The share prices of most players had already factored the future earnin"s from newer markets#
The postponement has drawn a lot of uncertainty, which has "ot reflected in the drubbin" that
AA
these scrips ha!e faced# Tata Power, R24, $ey!eli 4i"nite, %2, and PT, may be considered
stron" in this sector#
C!"!ntH
,ement sector has seen an increase in dispatches and reali6ations in the past few months# The
Import duties ha!e been drastically slashed on cokin" coal and there has been an impro!ement in
operatin" efficiencies which should impro!e the bottom lines of cement companies# The "ood
monsoon last year coupled with some maor infrastructural and housin" acti!ity is e+pected to
increase the off take of cement in this fiscal# As per the official data released by the ,ommerce
and Industry Ministry on May (9, ())G, cement production "rew by *A#* per cent to *#**
croretonnes in April ())G, the hi"hest amon" infrastructural industries# As per .I,,I estimates,
the industry is estimated to "row at @ to G= o!er the ne+t couple of 7uarters# The outlook for the
industry for this calendar year is positi!e# A,,, GA,4, India ,ement and -hree ,ement are
worth considerin" for in!estment#
India is !iewed as still the solid lon"8term story it was a year a"o# It3s ust as well that too much
of a "ood thin" too soon is bad for e!en the e7uity markets# This period of adaptation is perhaps
runnin" itself out now# The stabili6ation process is underway# The ne+t few months would see
the markets pickin" up the pieces from a more beni"n political en!ironment as the Go!ernment
hunkers down to business and corporate earnin"s, the pro"ress of the Monsoon and !aluations
come back to the fore# Throu"h the rest of the year the market is e+pected to "in"erly trade
hi"her all the way upto a ma+imum of *<9AA#@< for the -ense+ D><C@ for the $iftyE#
Medium8term strate"y
India will be less of a stock8pickers market in the ne+t si+ months than it was o!er the past one
year# Institutional acti!ity could "et further polari6ed dri!en by li7uidity considerations and the
AC
need to seek co!er from potential e+ternal shocks# Also, sectoral in!estin" could "ain currency as
compared to the fa!oured bottom8up, cherry pickin" approach we ha!e been accustomed to in
the past# This could lead to a de"ree of under8performance for se!eral mid8cap and small8cap
stocks across the market#
P%u"/ 21r )!2!ns&!sK '%1/a% 1uts1ur(&n' t#!"!s.
-ectors such as IT and pharmaceuticals, the fla"8bearers of the Indian outsourcin" story, ha!e in
fact under8performed for a lar"e part of the last twel!e months and its only in the recent crash
that they ha!e outperformed# These sectors are already benefitin" from their percei!ed
preclusion from bein" politically sensiti!e# 5ther emer"in" India outsourcin" themes such as
auto8components, pharmaceuticals and te+tiles too should find takers throu"h the year# The
currency risk associated with the manufacturin" sector may be difficult to determine since not all
companies hed"e their recei!ables fully# 1owe!er the e+ternal opportunity bein" so lar"e,it is
e+pected that the currency to impact mar"inally o!erall#
SECTORS OUTLOOK
-oftware ser!ices continue to be well supported for now with "rowin" !olume "rowth and stable
price en!ironment# The "lobal opportunities for Indian software companies continue to e+pand
and their earnin"s models ha!e now been cast to deli!er stable and "rowin" returns# The bi" risk
and ne"ati!e lon"8term surprise to this sector emanates from a potential turbulence in the &#-#
economy and stock markets, chiefly the bankin" and financial sectors# 1owe!er a period of
stability may pre!ail in the medium term althou"h lon"er term #,ontinuin" weakness for the
"reenback can be foreseen# In any case, Indian software companies ha!e come to terms with this
risk and are hed"ed ade7uately#
A@
Indian pharmaceutical companies continue to file e!er8increasin" number of DM.s and A$DAs
in their bid to pri6e open the &#-# "eneric market# The sector as a whole is poised critically to
deli!er a sharp increase in earnin"s from .M)@8)G onwards, from where the men will be
pro!erbially separated from the boys# In the medium term thou"h much of the "ood news is in
the price and therefore the sector has ceased to rally any further, indicatin" that there may be
e!entKe+ecution risk yet# The natural propensity of this sector to
pro!idesuccour durin" hard times is what3s dri!in" and may well continue to dri!e near term
outperformance# ,ore sectors like cement and capital "oods o!er commodities, banks and
cyclicals are preferred since the former ha!e a more durable underlyin" story to tell while the
latter would be more swayed by factors like ,hinese demand, subect to "reater !olatility and
uncertainties# These sectors would therefore be more fa!oured to play for a swift short8term
rebound but no more, since the concerns that ha!e led to their crash ha!e perhaps been o!erdone
in the short 8 term# It must be noted, that the recent price debacles may ha!e been e+a""erated
and rendered some stocks e!en within our non8preferred sectors attracti!e from a medium8term
basis, such as TI-,5, 1indalco, -:I and 5:, to name a few# As such we would ad!ocate an
indi!idualistic approach to stocks within the sectoral strate"y#
,ement looks particularly "ood "i!en the impro!in" demand8supply dynamics in the ne+t few
years# Valuations in the sector !ary sharply based on different parameters like 2VKtonne and
2VK2:IDTA#
Automobiles should continue to "row further throu"h ())G8*) as the key "rowth dri!ers remain
intact and are unlikely to chan"e much, e+cept interest rates, which could harden later in the
year# Automobiles also offers a direct play on "rowin" consumer spendin" in urban India as well
as bein" a maor beneficiaries from an e+pected "ood Monsoon this year#
AG
,apital Goods sector offers a stable lon" term play on infrastructure "rowth in India# The best
part is that it3s a stock pickerBs paradise here with se!eral e+cellent lar"e and mid8si6ed
companies to chose from# Re"ardless of the current policy framework, capital "oods companies
ha!e been deli!erin" stron" double8di"it "rowth in sales and profits# 5rder bookin"s are robust
and cost structures de8risked lar"ely from inflationary pressures# As such we see "reat lon"8term
!alue here#
,yclicals, chiefly commodities like metals, allied support industries and chemicals ha!e
benefited from the stron" ,hinese consumption story for the past twel!e months# A softenin" of
prices in the past 7uarter ())@8)G has already seen a sharp trend re!ersal in these stocks#
,ontinued weakness throu"h much of ())@8)G thereby keepin" a lid on sentiment and stock
prices in this period is e+pected##
P1%&t&(s t#r1?s t#! 'aunt%!t
If the elections threw up a surprise then what transpired in the aftermath of the result has
stupefied financial markets# The -ense+ crashed **= on May *Cth, the hi"hest in a sin"le day in
its history and the stock market came to a "rindin" halt as it hit the *)= systemic circuit8breaker
limit# The reckless utterances of the 4eft party leaders that raised the scepter of the country bein"
dra""ed back into the dark days of socialism, re"ional and "lobal concerns relatin" to the price
of oil, the "reenback and the direction of interest rates in the &#-# ha!e wei"hed hea!ily on
in!estors#
Manic Monday will per!ersely be called the Vred letter day3 in history books for more reasons
that one# Post8mortem aside, politics, after a lon" time has thrown the "auntlet at in!estors# The
markets will take it up of course, but not before it fires a !olley of 7uestions back, which this
new Go!ernment must answer une7ui!ocally and soon when it presents its &nion :ud"et in July#
C)
H&'# &nst&tut&1na% 1?n!rs#&p L (r!at!s st1($ 1!r#an'
Reports as well as anecdotal e!idence includin" the hu"e sur"e in .II inflows in the last one year
su""est that the .II ownership of Indian stocks has risen sharply in this period# This, from a
technical perspecti!e portends ne"ati!ely, "i!en the weakenin" "lobal position for emer"in"
market e7uities# Also note that India has been amon" the chief recipients of capital flows in the
re"ion in ())@ and ())G# The .II capital flow fi"ures in ())G show that barrin" May ())G DMTD
net .II sales are UC<@mnE there has been a net inflow of U<#>*bn on a MTD basis# This fi"ure is
second only to -outh %orea, which recei!ed o!er U*)bn# 5n a
yearly basis India was third hi"hest recipient after -outh %orea and Taiwan# 'hen !iew a"ainst
this backdrop, the 7uantum of funds that ha!e flowed out is not much#
The ownership pattern of the :-28()) companies shows that .IIs own *@= of the stocks there
as of March ())G as compared to *(= a year a"o# .or the -ense+ that number is e+pected to be
between *@8()= today as compared to *98*A= a year a"o# 5f the U>bn odd in!ested by .IIs
since January ())G, U*#9bn came into the IP5s of 5$G, and GAI4 alone# These two stocks
comprise *C= of the $-2 $ifty and hence suffer from a hu"e .II stock o!erhan"# All these
fi"ures su""est two thin"s H that India3s o!erwei"ht position in the benchmark indices DA= in
M-,I 2mer"in" MarketsE has perhaps led to it recei!in" more inflows than it should ha!e so far
and secondly, the .II ownership is at historically hi"h le!els today# -uch hi"h ownership and
wei"hts e+poses it to relati!e risk of cutKdown"rade in its ratin"s in the benchmark indices like
the M-,I indices# These factors therefore create a ne"ati!e o!erhan" of stock as far as India is
concerned#
C*
G%1/a% (1n(!rns L n1t t1 /! tr&2%!) ?&t#
A number of lon"er8term issues need to be borne in mind that could create tumultuous shifts in
capital markets "lobally# The &#-# stock market must come to terms with a plethora of issues this
year# $eedless to say that despite all the Vhappy3 numbers and proections, structural
contradictions su""ests that a hard landin" will come to pass# The .ed ti"htenin", the price of the
Dollar and the U@) oil makes it a turbulent market to bet on# The ,hinese economy motor too is
downshiftin" its "ears# Prices of commodities
and frei"ht rates ha!e been the first casualties already followed by its stock market# ,ooler ,hina
and a flattenin" &#-# yield cur!e bodes ill for capital flows towards emer"in" markets and Asian
economies in "eneral# .urther debacles in either will impact "lobal capital flows si"nificantly
and India cannot hide from this# The latter half of fiscal ())@8)G will ha!e se!eral "lobal
uncertainties do""in" markets raisin" the risk premia all round, impactin" earnin"s multiples and
effecti!ely puttin" a lid on the markets#
In a nuts#!%%
R\Politics will mould reform and policy8makin" initially but economics will make its presence felt
later in the year# The concerns about the 4eft parties3 presence are o!erdone and hold lesser
de!ils than some of the other coalition partners# 1owe!er it is the &nion :ud"et to be presented
in July which will speak the Go!ernment3s mind and what the markets will heed more than any
amount of political double8speak
R\It is not enou"h to take solace in the clich] of continuity of reforms as it is to hope for a
hastened pace# 27uity markets will watch for that closely#
R\Global economic factors, technical concerns such as .II inflows# In the face of such resistance,
C(
in!estors ha!e their work cut out for the rest of ())G
RESEARCH O9@ECTIVE
• To understand the concept of Depository ser!ices#
• To know the procedure of !arious acti!ities8openin" of AKc, demateriali6ation,
remateriali6ation, pled"e, auction etc#
• To know about online tradin"#
• To study the deri!ati!e market#
• To know the !arious strate"ies with respect of futures and options#
• 1ow did the stock market react#
• Impact on !arious sectors#
• 1ow ,ommon Minimum Pro"ramme D,MPE affected the marketplace#
• 'here the in!estors should in!est now#
• To know about the !arious sectors3 outlook#
C<
RESEARCH METHODOLOG>
Research methodolo"y is the way to systematically sol!e the research problem# In it we study the
!arious ysteps that are "enerally adopted by researcher in studyin" in his research problem alon"
with the lo"ic behind them#
It is necessary for the researcher to know research method, techni7ue ; the methodolo"y,
researcher also need to understand the assumption underlyin" !arious techni7ue ; they can
decide that certain techni7ues ; procedures will be applicable to certain problem ; other
will not be#
To conduct a research in any field# It is necessary that is study method ; a way to approach
certain thin"s should be correct ; is systematic way# Thus to start a sur!ey of proect, its
methodolo"y should be to the point# It is correct /methodolo"y is the key to any sur!ey0
The success of any desertion work lar"ely depends upon correct selection ; the application
of the nature of the proposed study, nature of information to be co!ered in desertion#
/A "ood methodolo"y is the life blood of work0 DP2T2R 2I,1E
.or the descripti!e research undertaken to study the satisfaction le!el ; related issues
amon" the e+ecuti!e trainees of credit processin" a"ency Dunder icici bankE, mainly two
kind of data were collected !i6, primary ; secondary#
C>
DATA COLLECTION
Pr&"ar, )ata (1%%!(t&1nAH
primary data are those which are collected a fresh ; for the first time#
• Personal unstructured inter!iew of the employee of the bank#
• Distribution of the 7uestionnaires amon" the bank employee to "ather information#
S!(1n)ar, )ata (1%%!(t&1nAH
-econdary data which has already been collected ; analy6ed by some one else
• Documents "i!en by bank#
• Internet information ; websites#
• :ook ; ma"a6ines#
• Information "i!en by customers
• Re"istration kit and information broacher
C9
SAMPLING PLAN
Population or
uni!erse
All the indi!idual li!in" in Mumbai#
-amplin" unit A customer who in!est in share market#
-amplin" si6e G) people from the selected population#
-amplin" method The Jud"ment samplin" method#
-amplin" area banksand !arious markets of Mumbai#
DATA A$A4M-I-^:A-2D 5$ I$V2-T5R- 5. -1AR2 MAR%2T I$ VARI5&- R2GI5$ 5.
M&M:AI_ Representin" in the form of table ; chart
There are some areas of M&M:AI re"ion from where I "ot the in!estors response which are already
in!ests their money in share market throu"h Reli"are# .rom where I found some persons either most
satisfied or least satisfied# Analysis is "i!en below N8
CA
SANTACRUFA
In t#&s ar!a ** M &n!st1rs ar! )&ssat&s2&!)K *5 M sat&s2&!)K .: M '11)K 44 M !+(!%%!nt .
SANTACRUF
** M DISSATISFIED
*5 M SATISFIED
.: M GOOD
44 M E=CELLENT
CC
44%
28%
17%
11%
EXCELLENT
GOOD
SATISFIED
DISSATISFIED
GHATKOPARA
In t#&s ar!a *5 M &n!st1rs ar! )&ssat&s2&!)K .. M sat&s2&!)K .. M '11)K 3; M !+(!%%!nt .
GHATKOPAR
*5 M DISSATISFIED
.. M SATISFIED
.. M GOOD
3; M E=CELLENT
C@
39%
22%
22%
17%
EXCELLENT
GOOD
SATISFIED
DISSATISFIED
THANEA
In t#&s ar!a 8 M &n!st1rs ar! )&ssat&s2&!)K .. M sat&s2&!)K 33 M '11)K 3; M !+(!%%!nt .
CG
39%
33%
22%
6%
EXCELLENT
GOOD
SATISFIED
DISSATISFIED
THANE
8 M DISSATISFIED
.. M SATISFIED
33 M GOOD
3; M E=CELLENT
@)
DIVAA
In t#&s ar!a *5 M &n!st1rs ar! )&ssat&s2&!)K .. M sat&s2&!)K .: M '11)K 43 M !+(!%%!nt .
DIVA
*5 M DISSATISFIED
.. M SATISFIED
.: M GOOD
43M E=CELLENT
@*
33%
17%
22%
28%
EXCELLENT
GOOD
SATISFIED
DISSATISFIED
@(
FINDINGS
Durin" the /,ustomer Awareness About -hare Tradin"0 in relation to Reli"are main points are
foundedN
TDematrili6ation is basic tool of share tradin"#
• 27uity fund is not complicated# It is clear and specific fund#
• :y the increase demand of e7uity, company can "et more profit#
• The current knowled"e is !ery compulsory and all the e!ent occurrin" in the world are also
mention for better profit#
• Market is uncertain and fluctuates by a tiny e!ent#
CONCLUSION
'hat -2:I and its political bosses need to reali6e is that stock market is by nature a ner!ous
animal#
There is somethin" else the "o!ernment can do to make the markets less !olatileN "et all parties,
not ust allies, to a"ree to a minimum pro"ram of reform# :ut that3s somethin" as impossible as a
stock market#
The or"ani6ation should payin" more attention towards the proper publicity of the product and
facilities which differ the company with his competitors#
,ompany should open a client problem sol!in" department where clients can fill their problems
so transparency can take place durin" the tradin" and any other transaction and try to fulfill
better facilities to the clients#
@<
LIMITATIONS
La($ 12 a?ar!n!ss 12 st1($ "ar$!t
-ince the area is not known before it takes lot of time in con!incin" people to start in!estin" in
shares primarily in ipo3s
N1 pr1p!r assuran(! 12 r&'#t &n21r"at&1n
The main data sources are websites, telephonic information and offices !isit#
• The data on websites mi"ht be possible, not "et updated#
• The marketin" person mi"ht be possible , is not throu"h with all concepts to whom I
contacted#
• -ometimes, they try to hide information
S!r&(!s 12 (1"p!t&t1rs
'e cannot "i!e proper comment on competitor3s ser!ices till we use it# :ut I try to collect as
accurate information as possible as we all know ser!ices are intan"ible and we cannot predict its
7uality, it is a thin" a feel not to see#
@>
M1st p!1p%! ar! (1"21rta/%! ?&t# tra)&t&1na% /r1$!rs
As people are doin" tradin" from there respecti!e brokers, they are 7uite comfortable to trade !ia
phone#
La($ 12 t!(#n1 sa, p!1p%! an) p11r &nt!rn!t p!n!trat&1n
-ince most of the people are 7uite e+perienced and also they are not techno sa!!y# Also Internet
penetration is poor in India#
S1"! r!sp1n)!nts ar! un?&%%&n' t1 ta%$
-ome respondents are unwillin" does not respond, as they are 7uite annoyed with the phone call
and some don3t ha!e time#
Ina((urat! %!a)s
-ometimes leads are pro!ided which had error in it which !aries from only 9 di"it phone
numbers to wron" phone number#
M&s%!a)&n' (1n(!pts
-ome people think that shares are too risky and ust another name of "amble but they don3t know
it3s not at all that risky for lon" in!estors#
@9
<UESTIONNAIRE
A:5&T A'AR2$2-- 5. ,4I2$T .5R -1AR2 MAR%2T
Please tick D E indi!idually for each of the followin" parts#
X#*N Are you interested in share tradin" Q
DaE Mes ^ _
DbE $) ^ _
X#(N In which broker company you prefer for share tradin" Q
DaE Reli"are ^ _
DbE ,ar!ey ^ _
DcE -harekhan ^ _
DdE Any other ^ _
X#<N Are you satisfied with the return from it Q
DaE Mes ^ _
DbE $o ^ _
X#>N 'hat is e+pected rate of return Q
DaE 9= ^ _
DbE *)= ^ _
DcE *9= ^ _
DdE More than *9= ^ _
X#9N 'hat is actual rate of return Q
DaE Accordin" to e+pectation ^ _
DbE :elow the e+pectation ^ _
DcE More than e+pectation ^ _
X#AN 'hich is more profitable business to in!est Q
*# A"riculture ^ _
(# Te+title ^ _
<# :ank ^ _
># Any other ^ _
X#CN 'hich is more safer in!estment Q
DaE -hare ^ _
@A
DbE Debt ^ _
DcE :ank ^ _
DdE Any other ^ _
X#@N .rom where you "et the knowled"e about your
in!estmentQ
DaE :y broker ,o# ^ _
DbE $ewspaper ^ _
DcE Tele!ision ^ _
DdE Any other ^ _
X#GN In which bank you ha!e your sa!in" account Q
DaE $ationali6ed ^ _
DbE Pri!ate sector ^ _
X#*)N 'hy would you like to in!est your money Q
DaE .or interest ^ _
DbE .or future ^ _
DcE Any contin"encies ^ _
DdE Any other obect ^ _
X#**N 1a!e you tradin" account in Reli"are Q
DaE Mes ^ _
DbE $o ^ _
X#*(N Are you satisfied with the ser!ice pro!ided by the
Reli"areQ
DaE Mes ^ _
DbE $o ^ _
X#*<N If $o, Please specify the reason Q 888888888888888888888888888888888888888
X#*>N Are you interested to in!est further with Reli"are Q
DaE Mes ^ _
DbE $o ^ _
X#*9N 'hy would you like to in!est with Reli"are Q
DaE It is safer ^ _
DbE It3s ser!ice is faster than any other ^ _
DcE It pro!ide sufficient return ^ _
DdE Any other ^ _
@C
9I9LIOGRAPH>
:ooks ; JournalN
 Philip %otler; %e!in %eller, Marketin" Mana"ement ? *(
th
2dition , Prentice81all India,
())A
 Ramaswamy, V#-#, ;$amakumari, -#, Marketin" Mana"ementN Plannin",
Implementation ; ,ontrol, Macmillan India, DaryaGan,
 Marketin" Research, Dacid # luck Ronald -#Rubin Prentice 1all of India P!t# 4td
 'ebsitesN8
httpNKKwww#s8m8a8r8t#comKinde+#htm
httpNKKwww#"oo"le#co#inKsearchQhl`en;7
httpNKKwww#reli"areseurities#com
httpNKKwww#nseindia#com
@@

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