ABSTRACT

Finance may be defined as the provision of money at the time when it is required. Finance refers to the management of flows of money through an organization. It concerns with the application of skills in the manipulation use and control on money every enterprise, when the big or small need the finance to carry on its operations and to achieves its targets. In fact finance is so indispensable today and it is rightly said that it is life blood of an enterprise with at adequate finance no enterprise can possibly accomplish its objectives. A finance plan is a statement estimating the amount of capital and determines its composition. The quantum of funds need will depend upon the asset requirements of the business. The time which funds will be need should be carefully decided so that finance is raised at a time when these are needed. The next aspect of a ways for raising funds. The selection of various securities should be done carefully issuing of capital and debenture, raising of loan , etc may raise the fund. Which source of finance should be raised and up to what amount there should be raised is very important place a pattern of financing is selected then it becomes very difficult to modify it. Finance plans also spells out the policies to be pursed for the flotation of various corporate securities, particularly regarding the time of their flotation. Companies have started identifying their core business and as they focus their view son finance planning. Finance regard as centre of every business enterprise. In other words, finance is foundation of all economic oriented activity. In general parlance it can be taken as requirement of funds at the time it is wanted. For any companies well being and for further planning it is a must to know the receivable analysis of the corporate industry after implementing the financial plans. The change in economic policy of the government of India the industry.

CHAPTER 1 INTRODUCTION Every modern economy is based on a sound financial system. A financial system is a set of institutional arrangements through which financial surpluses are mobilized from the units generating surplus income and transferring them to the others in need of them. The activities include production, distribution, exchange and holding of financial assets/instruments of different kinds by financial institutions, banks and other intermediaries of the market. The financial markets have two major components; they are money market and capital market.

New Issue

Stock (Secondary)

(Primari Market)

MONEY MARKET: The Money Market refers to the market where borrowers and lenders exchange shortterm funds to solve their liquidity needs.
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CAPITAL MARKET: The Capital Market is a market for financial investments that are direct or indirect claims to capital (Gart, 1988). SECURITIES MARKET: It refers to the markets for those financial instruments/claims/obligations that are commonly and readily transferable by sale. It has two inter-dependent and inseparable segments, the new issues (primary) market and the stock (secondary) market. SECONDARY MARKET: The secondary market enables those who hold securities to adjust their holdings in response to changes in their assessment of risk and return. PRIMARY MARKET: The Primary Markets provides the channel of sale of new securities

OBJECTIVES To know the awareness of people aboutShare market To find out theCOMPETITIVEPOSITIONof India infoline To promote the sales of India Infoline Customer Satisfaction of different firms Analysis of indiainfoline with other firm of in share market.

SCOPE OF THE STUDY

It gives a brief introduction of stock exchanges and it also tries to familiarize the indices i.e. SENSEX and the NIFTY and shows the importance of these studies It also gives us a detailed insight about the trading in a terminal, what is the network behind the system for its effective working and its also explains how the securities are trade on online. It explains security analysis with the help of mathematical calculation with reference to risk characteristics. and its frame work and it also gives portfolio analysis with reference to risk

LIMITATIONS The project survey is carried out only in Kolkata region The results are based only according to customers responsewhich may vary. Sample size of survey to determine the position of the firm isonly 100, hence the level of significance may vary. brokerage rate of the different firms are based on theinformation collected by me via visiting the broking firmsand using website of the firms which may vary. The project survey for comparison was carried only on thebasis of de-mat account.

CHAPTER II ABOUT THE COMPANY PROFILE About India info line India Info line Group The India Infoline group, comprising the holding company, IndiaInfoline Limited and its wholly-owned subsidiaries, straddle the entirefinancial services space with offerings ranging from Equity research,Equities and derivatives trading, Commodities trading,

PortfolioManagement Services, Mutual Funds, Life Insurance, Fixed deposits,GoI bonds and other small savings instruments to loan products and Investment banking. India Infoline also owns and manages thewebsiteshttp://www.indiainfoline.com/ and http://www.5paisa.com/ The company has a network of 976 business locations (branches and sub-brokers) spread across 365 cities and towns. It has more than800,000 customers. The IIFL (India Infoline) group, comprising the holding company, India Infoline Ltd (NSE: INDIAINFO, BSE: 532636) and its subsidiaries, is one of the leading players in the Indian financial services space. IIFL offers advice and execution platform for the entire range of financial services covering products ranging from Equities and derivatives, Commodities, Wealth management, Asset management, Insurance, Fixed deposits, Loans, Investment Banking, Gold bonds and other small savings instruments. IIFL recently received an in-principle approval for Securities Trading and Clearing memberships from Singapore Exchange (SGX) paving the way for IIFL to become the first
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Indian brokerage to get a membership of the SGX. IIFL also received membership of the Colombo Stock Exchange becoming the first foreign broker to enter Sri Lanka. IIFL owns and manages the website, www.indiainfoline.com, which is one of Indias leading online destinations for personal finance, stock markets, economy and business. IIFL has been awarded the Best Broker, India by FinanceAsia and the Most improved brokerage, India in the AsiaMoney polls. India Infoline was also adjudged as Fastest Growing Equity Broking House - Large firms by Dun & Bradstreet. A forerunner in the field of equity research, IIFLs research is acknowledged by none other than Forbes as Best of the Web and a must read for investors in Asia. Our research is available not just over the Internet but also on international wire services like Bloomberg, Thomson First Call and Internet Securities where it is amongst one of the most read Indian brokers. A network of over 2,500 business locations spread over more than 500 cities and towns across India facilitates the smooth acquisition and servicing of a large customer base. All our offices are connected with the corporate office in Mumbai with cutting edge networking technology. The group caters to a customer base of about a million customers, over a variety of mediums viz. online, over the phone and at our branches. IIFL/India Infoline refer to India Infoline Ltd and its subsidiaries/ group companies. India Infoline Ltd A SEBI authorized Portfolio Manager; it offers Portfolio Management Services to clients. These services are offered to clients as different schemes, which are based on differing investment strategies madeto reflect the varied risk-return preferences of clients

India Infoline Media and Research Services Limited. The content services represent a strong support that drives thebroking, commodities, mutual fund and portfolio management services businesses. l.It undertakes equities research which is acknowledged by noneother than Forbes as 'Best of the Web' and 'a must read for investors in Asia'. India Infoline's research is available not just over the internet but also on international wire services like Bloomberg(Code: IILL), Thomson First Call and Internet Securities where IndiaInfoline is amongst the most read Indian brokers. India Infoline Commodities Limited. India Infoline Commodities Pvt Limited is engaged in the business of commodities broking. We enjoy memberships with the MCX and NCDEX, two leading Indian commodities exchanges, and recently acquired membership of DGCX. We have a multi-channel delivery model, making it among the select few to offer online as well asoffline trading facilities. India Infoline Marketing & Services India Infoline Marketing and Services Limited is the holding company of India Infoline Insurance Services Limited and India InfolineInsurance Brokers Limited. India Infoline Insurance Services Limited is a registered Corporate Agent with the Insurance Regulatory and Development Authority (IRDA). It is the largest Corporate Agent for ICICIPrudential Life Insurance Co Limited. India Infoline was the first corporate agent to get licensed by IRDA in early 2001.India Infoline Insurance Brokers Limited India InfolineInsuranceBrokers Limited is a newly formed subsidiary which will carry out thebusiness of Insurance broking. We have applied to IRDA for theinsurance broking license and the clearance for the same is awaited.
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India Infoline Investment Services Limited Consolidated shareholdings of all the subsidiary companies engaged in loans and financing activities under one subsidiary. Recently,Orient Global, a Singapore-based investment institution invested USD 76.7 million for a 22.5% stake in India Infoline Investment Services. India Infoline Investment Services Private Limited consistsof the following step-down subsidiaries.(a) India Infoline Distribution Company Limited (distribution of retailloan products)(b) Money line Credit Limited (consumer finance)(c) India Infoline Housing Finance Limited (housing finance) IIFL (Asia) Pte Limited IIFL (Asia) Pte Limited is wholly owned subsidiary which has beenincorporated in Singapore to pursue financial sector activities inother Asian markets. Further to obtaining the necessary regulatory approvals, the company has been initially capitalized at 1 millionSingapore dollars. India Infoline.com Distribution Services Ltd. They have developed a retail distribution infrastructure (Investor Points) to support our online presence. This network, spread over 60locations, is engaged in the distribution of financial productsincluding fixed deposits, GoI Relief bonds, insurance, mutual fundsand IPO's. These Investor Points help us service our brokingcustomers also. Money Tree Consultancy Services(MTCS)Is a group company of India Infoline Ltd., focusingdistribution on Home Loans, Personal Loans, Credit Cards and Non Life Insurance.MTCSextends the distribution reach of financial services providers by using alternate channels like theInternet, telephone, wireless, sales force and events.
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CORPORATE PHILOSOPHY: PEOPLE ORGANIZATION It is rightly said about the services sector that our most prized assets go down the elevator at the end of every day. Being in theservices industry, people are their biggest and most important assets. They believe that people make all the difference. OWNER MINDSET What distinguishes India Infoline from other organizations is thefact that all employees are driven by Owner Mindset. This is a privilege as well as a responsibility. They think and behave likeone. While there is no the way of doing things, there are millionsof things which an owner would do differently as compared to atypical person with an employee mindset.We believe in theOlympicmottoand have made it our principlefor the coming year. We have been preparing to move into a neworbit of growth for several years now. We believe that the realgrowth has yet not happened.Each member of Team India Infoline has been putting up an Olympian fight and is capable, confident, and certain and ready to deliver faster, higher and stronger performance .

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Milestones 1995 1997 Launched research products of leading Indian companies, key sectors and the economy Client included leading FIIs, banks and companies. 1999 2000 Launched online trading through www.5paisa.com Started distribution of life insurance and mutual fund 2003 2004 2005 2006 2007 Commenced institutional equities business under IIFL Formed Singapore subsidiary, IIFL (Asia) Pte Ltd
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Commenced operations as an Equity Research firm

Launched www.indiainfoline.com

Launched proprietary trading platform Trader Terminal for retail customers

Acquired commodities broking license Launched Portfolio Management Service

Maiden IPO and listed on NSE, BSE

Acquired membership of DGCX Commenced the lending business

2008 2009 2010 Received in-principle approval for membership of the Singapore Stock Exchange Received membership of the Colombo Stock Exchange Acquired registration for Housing Finance SEBI in-principle approval for Mutual Fund Obtained Venture Capital license Launched IIFL Wealth Transitioned to insurance broking model

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14

ABOUT THE INDUSTRY

Capital market
A capital market is a market for securities (debt or equity), where business enterprises companies and governments can raise long-term funds. It is defined as a market in which money is provided for periods longer than a year, as the raising of short-term funds takes place on other markets (e.g., the money market). The capital market includes the stock market (equity

securities) and the bond market (debt). Financial regulators, such as the UK's Financial Services Authority (FSA) or the US Securities and exchange commission (SEC), oversee the capital markets in their designated jurisdictions to ensure that investors are protected against fraud, among other duties. Capital markets may be classified as primary markets and secondary markets. In primary markets, new stock or bond issues are sold to investors via a mechanism known as underwriting.. In the secondary markets, existing securities are sold and bought among investors or traders, usually on a securities exchange, over the-counter or elsewhere.

Stock exchange
A stock exchange is an entity which provides "trading" facilities for stock brokers and traders, to trade stocks and other securities. Stock exchanges also provide facilities for the issue and redemption of securities as well as other financial instruments and capital events including the payment of income and dividends. The securities traded on a stock exchange include: shares issued by companies, unit trusts, derivatives, pooled investment products and bonds. To be able to trade a security on a certain stock exchange, it has to be listed there. Usually there is a central location at least for recordkeeping, but trade is less and less linked to such a physical place, as modern markets are electronic networks, which gives them advantages of speed and cost of transactions. Trade on an exchange is by members only. A stock exchange is often the most important component of a stock market. Supply and demand in stock markets is driven by various factors which, as in all free markets, affect the price of stocks.

15

There is usually no compulsion to issue stock via the stock exchange itself, nor must stock be subsequently traded on the exchange. Such trading is said to be off exchange or over- thecounter. This is the usual way that derivatives and bonds are traded. Increasingly, stock exchanges are part of a global market for securities.

OVER-THE-COUNTER Over-the-counter Exchange of India was started in 1992 after the role models of NASDOQ (National association of securities dealers automated quotation). It was started with the objective of providing a market for the smaller companies that could not afford the listing fee of large exchanges and did not fulfill the minimum capital requirement for listing. It aimed at creating fully decentralized and transparent market.

Over the counter means trading across the counter in scrips. The counter refers to the location of the member or dealer of the OTCEI where the deal or trade takes place. Every counter is treated as a trading floor for the OTCEI the investors can buy and sell. The member or dealers of OTCEI counters are linked to the central OTCEI computer. The member should have the computer and telecommunication facility. The players on the OTCEI exchange are the members and dealers.

EXCHANGE TREDED FUNDS

Exchange Traded Funds are essentially index funds that are listed and traded on exchanges like stocks. Until the development of ETFs, this was not possible before. Globally, ETFs have opened a whole new panorama of investment opportunities to retail as well as institutional money managers. They enable investors to gain broad exposure to entire stock markets in different countries and specific sectors with relative ease, on a real-time basis, and at a lower cost than many other forms of investing. An ETF is a basket of stocks that reflects the composition of an index, like S&P CNX The ETF trading value is based on the net asset value of the

underlying stocks that it represents. Think of it as a mutual fund that you can buy and sell in real time at a price those changes throughout the day.

16

Investors can buy and sell the units of Gold ETF (Exchange Traded Funds) directly on the stock exchange through a SEBI registered broker. Gold ETFs give an opportunity to investor to invest in standard gold bullion (0.995 purity) neither taking the physical delivery of gold nor compromising with its quality. Benefits of Gold ETFs over Physical Gold

No risk of storing the investment and its security Higher liquidity and easy to buy or sell

BOMBAY STOCK EXCHANGE (BSE) The origin of Bombay stock exchange dates back to 1875. It was organized under the name of The Native stock and share brokers association as a voluntary and non-profit making association. It was recognized on a permanent basis in 1957. This premier stock exchange is the oldest stock exchange in Asia.

The objectives of the stock exchange are

To safeguard the interest of investing public having dealing on the exchange. To establish and promote honorable and just practices in securities transaction. To promote, develop and maintain well-regulated market for dealing in securities. To promote industrial development in the country through efficient resource

mobilization by the way of investment incorporates securities. NATIONAL STOCK EXCHANGE (NSE) NSE was setup in 1995; investors are offered to trade on companies by both Bombay Stock Exchange (BSE) and National Stock Exchange (NSE). BSE and NSE offer investors to trade on companies. Each of these exchanges have their own membership for brokers admission which can help investors in trading which includes buying and selling of stocks. BSE and NSE have their corporate offices in Mumbai. NSE is leading as better stock exchange for the last ten years on the basis of volume and quality trade.
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NSE is situated in Mumbai National Stock Exchange (NSE) is considered to be the first debt market in India. It was established in 1993 and encouraged stock exchange reforms through modernization and competition. Trading process was inaugurated in mid year of 1994. NSE was recognized as stock exchange by the department of comaffairs. NSE deals in trade related to treasury bills, government security and bonds issued by public sector companies.

PERFORMANCE NIFTY FROM 1990 to 2010

S&P CNX NIFTY

7000

6000

5000

4000

3000

NIFTY

2000

1000

0 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010*

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REASONS FOR INCREASED INVESTMENT IN STOCK MARKET Investment in stock market and commodity market becomes more popular among the people. This may be attributed to the following. Choice to investors Lesser investment Money multiplier Liquidity and safety Protection against inflation Contribution to the economic development Par value Ownership rights Voting rights Tax Benefit

CURRENT SCENARIO The current conditions of Indian markets have drastically improved. There is absolute transparency and instant transactions. All Indian Stock markets are now computerized and Internet Trading has become a common phenomenon. Indian stock markets have also developed a dynamic nature and can change from a bullish temperament to a bearish slide. Any small bit of information or even a rum our from any part of the country can affect the market and is a fairly accurate indicator of the prevalent atmosphere in the region or country. MULTI COMMODITY EXCHANGE Multi Commodity Exchange (MCX) is an independent commodity exchange based in India. It was established in 2003 and is based in Mumbai. The turnover of the exchange for the fiscal year 2009 was US$ 1.24 trillion, and in terms of contracts traded, it was in 2009 the world's sixth largest commodity exchange. ([1]) MCX offers futures trading in bullion, ferrous and nonferrous metals, energy, and a number of agricultural commodities (menthe oil, cardamom, potatoes, palm oil and others).
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MCX has also set up in joint venture the MCX Stock Exchange. Earlier spin-offs from the company include the National Spot Exchange, an electronic spot exchange for bullion and agricultural commodities, and National Bulk Handling Corporation (NBHC) India's largest collateral management company which provides bulk storage and handling of agricultural products. It is regulated by the Forward Markets Commission.

MCX is India's No. 1 commodity exchange with 83% market share in 2009 The exchange's main competitor is National Commodity & Derivatives Exchange

Ltd ([2])

Globally, MCX ranks no. 1 in silver, no. 2 in natural gas, no. 3 in crude oil and

gold in futures trading

The highest traded item is gold. MCX has several strategic alliances with leading exchanges across the globe As of early 2010, the normal daily turnover of MCX was about US$ 6 to 8 billion MCX now reaches out to about 800 cities and towns in India with the help of

about 126,000 trading terminals

MCX COMDEX is India's first and only composite commodity futures price

index

GOLD

Gold is the oldest precious metal known to man and for thousands of years it has been valued as a global currency, a commodity, an investment and simply an object of beauty
MAJOR CHARACTERISTICS

Gold is unique as it is both a commodity and a monetary asset. Its stability and high value makes it virtually indestructible and ensures that it is

almost always recovered and recycled. There is no true consumption of gold in the economic sense as the stock of gold

remains essentially constant while ownership shifts from one party to another.
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Although gold mine production is relatively inelastic, recycled gold (or scrap)

ensures there is a potential source of easily traded supply when needed, and this helps to stabilize gold price. Economic forces that determine the price of gold are different from, and in many

cases opposed to the forces that influence most financial assets.

GLOBAL SUPPLY DEMAND SCENARIO

The total above ground stocks of gold is estimated to be around 1,63,000 tones by Gold Fields Minerals Services (GFMS) as on end of 2008 Out of this total stock, 51% is estimated to be present as jewellery, 18% as official reserves, 17% held as investment, 12% used for industrial purposes and 2% is unaccounted for. Jewellery accounts for almost two-thirds of annual gold demand with investment and industry being the other main drivers. The total annual global demand for gold has averaged 3530 tones in the last three years (2005 - 2008). However, it is expected to dip slightly in 2009, owing to the sharp rise in prices. Five countries, viz., India, China, USA, Turkey, Saudi Arabia and UAE account for above 60% of gold demand, with each market driven by a different set of socio economic and cultural factors. The total global mine production is relatively stable, averaging approximately 2,455 tons per year over the last three years. Recycling of old gold scrap and official sector sales are the other major sources of supply, which have averaged 1084 tones and 378 tons in the last three years. South Africa has been a major gold producer since 1880s and it is estimated that about 50% of all gold ever produced has come from this nation. While, during the early 1980's it produced about 1000 tones, the output in 2007 dropped to just 272 tones. China with a production of 276 tones, overtook South Africa as the world's largest gold producer in 2007 for the first time since 1905 that South Africa has not been the largest. The other major producers are USA, Australia, Russia and Peru.
INDIAN GOLD MARKET

India is the world's largest consumer of gold. Indians normally buy about 25 per cent of the world's gold, purchasing around 700 - 750 tones of gold every year. However, the sharp price
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increase in 2008 and 2009 has impacted demand with total demand in 2008 dipping to 660 tones. It is further expected to shrink in 2009 with demand in first three quarters of 2009 totaling only around 265 tones against 553.5 tones in the same period of the previous year. As India's domestic primary production of gold is very less, at around 2-3 tones a year, the country imports most of its domestic requirement. Thus, India is also the largest importer of the yellow metal and has averaged imports of around 600 tones a year. However, 2008 imports dipped to around 400 tones of gold and it is further expected to dip to around 200-220 tones in 2009 owing to high prices. India's gold demand is firmly embedded in cultural and religious traditions. It is also valued in India as a savings and investment vehicle and is the second preferred investment after bank deposits. Gold hoarding tendency is well engrained in the Indian society and unofficial stocks held by Indians is estimated to be well above 15,000 tones, which is around 9% of the total global gold stocks. GOLD INVESTMENT All the precious metals, gold is the most popular as an investment.[1] Investors generally buy gold as a hedge or harbor against economic, political, or social fiat currency crises (including investment market declines, burgeoning national debt, currency failure, inflation, war and social unrest). The gold market is subject to speculation as are other markets, especially through the use of futures contracts and derivatives. The history of the gold standard, the role of gold reserves in central banking, gold's low correlation with other commodity prices, and its pricing in relation to fiat currencies during the financial crisis of 20072010, suggest that gold behaves more like a currency than a commodity.

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GOLD PRICE Gold has been used throughout history as money and has been a relative standard for currency equivalents specific to economic regions or countries. Many European countries implemented gold standards in the latter part of the 19th century until these were dismantled in the financial crises involving World War I. After World War II, the Bretton Woods system pegged the United States dollar to gold at a rate of US$35 per troy ounce.

FOR GOLD PRICES FROM 2000 TO 2011

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Year

Gold USD/ozt

DJIAUS D

World GDP USD tn

US DebtUSD bn

Trade Weighted US dollar Index 33.0 35.7 35.7 68.2 73.2 90.3 118.6 111.6 99.9 100.1

1970 1975 1980 1980 1985 1990 1995 2000 2005 2010 2011

37 140 590 590 327 391 387 273 513 1,410 1,500

839 852 964 964 1,547 2,634 5,117 10,787 10,718 11,578 11,670

3.3 6.4 11.8 11.8 13.0 22.2 29.8 31.9 45.1 ... ...

370 533 908 908 1,823 3,233 4,974 5,662 8,170 14,025 15.550

ABOUT SILVER MARKET IN INDIA

USES OF SILVER Silver's unique properties include its strength, malleability, ductility, electrical and thermal conductivity, sensitivity to high reflectance of light and despite it being classified as a precious metal, its reactivity which is the basis for its use in catalysts and photography. WORLD MARKETS

London Bullion Market is the global hub of OTC (Over-The-Counter) trading in

silver.

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Comex futures in New York is where most fund activity is focused

INDIAN SCENARIO

Silver imports into India for domestic consumption in 2002 was 3,400 tons down

25 % from record 4,540 tons in 2001.

Open General License (OGL) imports are the only significant source of supply to

the Indian market.

Non-duty paid silver for the export sector rose sharply in 2002, up by close to

200% year-on-year to 150 tons.

Around 50% of India's silver requirements last year were met through imports of

Chinese silver and other important sources of supply being UK, CIS, Australia and Dubai.

Indian industrial demand in 2002 is estimated at 1375 tons down by 13 % from

1,579 tons in 2001. In spite of this fall, India is still one of the largest users of silver in the world, ranking alongside those Industrial giants, Japan and the United States.

By contrast with United States and Japan, Indian industrial off take for fabrication

in hardcore industrial applications like electronics and brazing alloys accounts for only 15 % and the rest being for foils for use in the decorative covering of food, plating of jewelry and silverware and jar.

In India silver price volatility is also an important determinant of silver demand as

it is for gold.

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FREQUENCY DISTRIBUTION OF SILVER LONDON FIXING VOLATILITY FROM 1995 TILL DATE
Percentage Change % Daily Changes Number of times Percentage times 7 0.3 10 0.5 Weekly Changes Number of times Percentage times 9 21 15 3.4 50 11.4 363 83.1 85 3.9 2086 95.3 >7 5-7% 3-5% <3%

SILVER FOR THE YEAR 2000 to 2011

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CHAPTER III

REVIEW OF LITERATURE
The purpose of the chapter is to review the various studies conducted and made to consolidate the views and studies to determine the effectiveness of different factors which influence the equity price. D. SARKAR studies the share price behavior using the time series data. He found that the retained earnings had on effect share price while the influence of divided was very much significant. PROF. LEOPOLD A. BERNSTEIN (1975) in his article had defended the function and value of fundamental investment analysis as the basis of successful investment in equity shares. He had argued that even though psychological and other factors ACCounted 50% of price changes the other 50% of it was only due to fundamental factors. BALASUBRAMANIAM. K. (1994) examined the behavior of stock returns in India. He took the daily and weekly prices of 90 shares listed in BSE. He applied auto Correlation analysis; runs test and filter techniques for the study. He concluded that share price behavior is not random and hence random walk hypothesis cannot be established for Indian stock market. CHAN AND CHEN (1991) examined the difference in structural characteristics that lead firms of different size to react differently to the same economic news. By using time series analysis they found that return difference between small and large firms could be captured by the responses of high leverage firms and marginal firms to economic views. TERRY A. MARSH AND ROBERT C. MERTON perhaps as for as long as there has been a stock market. Economists have debated whether or not stock prices rationally reflect the intrinsic or fundamental values of the underlying companies. SAMUELSON-FAMA efficient market hypothesis that stock prices fully reflect available information and are therefore the best estimate of the intrinsic values. The majority of
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the empirical studies report results that are consistent with stock market rationally. There is for example considerable evidence that, on average, individual stock prices respond rationally to surprise announcements concerning firm fundamentals, such as dividend and earnings changes and those prices do not respond to non-economic events. Stock price are however, also known to be considerably more volatile than either dividends or Accounting earnings. Dr. David Johnson, President, Bronco Creek - United States- Dr. David Johnson has more than 17 years of industry experience in generative exploration and consulting for major mining companies. Dr. Johnson is a co-founder of Bronco Creek Exploration, where his current responsibilities include business development, managing day-to-day company affairs, target generation, land acquisition, and overseeing project activities. He excels in designing, implementing, and managing broad-based mineral exploration programs, ranging from regionselection to property evaluation. Past research activities focused on the application of ore genesis and mass-transfer to mineral exploration where he co-developed a new deposit model for Feoxide-Cu-Au (IOCG) deposits and co-authored review papers on porphyry and IOCG deposits for the Economic Geology 100th Anniversary Volume. Dr. Johnson graduated from The Colorado College in 1988 with a B.A. in geology, and later earned his PhD from the University of Arizona in 2000. Dr. Eric Jensen, Global Generative Exploration Team Leader- Dr. Jensen has 15 years of industry experience including positions as mine geologist, mine-site exploration geologist, grassroots exploration geologist, and as a consultant to several major mining companies. Dr. Jensen is a co-founder of Bronco Creek Exploration, and currently serves as Chief Geologist of Eurasian Minerals. He has extensive experience in the planning and implementation of regionalscale sampling programs and geologic evaluations of properties and prospective terranes. He has relevant exploration, research and academic experience in mineral deposits related to alkaline magmatism, "high- and low-sulfidation" epithermal gold deposits, porphyry-style deposits, exothermal lode gold systems, and Fe-oxide-Cu-Au systems. Dr. Jensen graduated from Carleton College in Northfield, Minnesota in 1993 with a B.A. in Geology, and received his PhD in Economic Geology from the Center for Mineral Resources at the University of Arizona in 2003.

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CHAPTER IV RESEARCH METHODOLOGY The research was carried out through survey method, fieldwork in order to collect data. Data collected through questionnaire and verbal discussion. The analysis of the data was done through simple statistical technique, such as drawing of percentage for generalization. The use of different types of graphs gives a better pictorial understanding about the whole project. PLACE OF STUDY: The study was conducted in different Retail outlets in Kolkata, different people selecting through random sampling and India Infoline Securities Pvt. Ltd. SAMPLING PLAN: A sample design is definite plan for obtaining an over all analysis from a given population. It refers to the technique or the procedure, the researcher would adopt in selecting items to be included in the sample research should select design which would be reliable and appropriate for the study. SAMPLE SIZE: For the present study respondents have been selected from different places in Kolkata. The sample was taken as 100respondents.

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SOURCES OF DATA: Data collection is an actively in marketing research. The design of the data collection method is the spine of research design. The sources of data are classified in to two types. The Primary Data. The Secondary Data. PRIMARY DATA: The primary data are fresh data collected directly from the field and therefore consist of original information gathered for the specific purpose. It is expensive, laborious, and time consuming. But it assures a greater degree of accuracy and reliability as it comes straight from the horses month. The information is collected with the help of questionnaires a set of 15 questions SECONDARY DATA: The secondary data are the data, which the investigator borrows from other who have collected it for various other purposes. Therefore it may not entirely be reliable. It is less expensive and involves less expensive and involves less time and labor than the collection of primary data. The Sources of collecting Data: Reports and publication of Government department and international bodies. Newspaper, magazines, trade journals. Publication of books company records, brochures, catalogues and other documents.
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 Data related by statistical organization. In this study the main sources of data collection is the primary data using the method of structured questionnaire. Sampling Procedure: For a statistical survey of a population, the investigator may collect information from each and every unit belonging to the population or he may collect information from some selected representative units only. The group of representative units from which information is collected is called sample. A sample is a representative position of the population. A statistical survey in which a sample is made use of is known as sample survey. The procedure of extracting a sample from a population is called as sampling procedure. Since validity of results of a survey depends mainly on the selection of the sample, the sample should be obtained with utmost care. Important methods of sampling procedure are: I. II. III. Random sampling. Judgment sampling. Quota sampling.

Random Sampling: A sampling procedure in which units are selected in such away that all the units in the population have equal change of being selected is random sampling.

Judgment Sampling:
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When the population is small the investigator personally, according to his judgment way select the units which from the sample, such a sample is called purposive or a udgment sampling. Quota Sampling: If the population has various categories of units the investigators may decide to fix specified quotas for representation for all major categories. In this study Random sampling method is used. FIELD WORK: This study involves the field work of around 60 days, wherein the target segment i.e. consumers were contacted individually. Prepared questionnaire were administrated to them and answers were collected. Fieldwork was done in different areas in Kolkata. The study was conducted from India Infoline Securities Pvt. Ltd.The Study attempts to analyze and determine The position of India Infoline in Securities Market.

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CHAPTER-V DATA ANALYSIS AND INTERPRETATION Products Of Company PRODUCTS EQUITY MUTUAL FUND COMMODITIES PMS DERIVATIVES

Equities IIFL is a member of BSE and NSE registered with NSDL and CDSL as a depository participant and provides broking services in the cash, derivatives and currency segments, online and offline. IIFL is a dominant player in the retail as well as institutional segments of the market. It recently became the first Indian broker to get a membership of the Colombo Stock Exchange and is also the first Indian broker to have received an in-principle approval for membership of the Singapore Stock Exchange. IIFLs Trader Terminal, its proprietary trading platform, is widely acknowledged as one of the best available for retail investors

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Investors opt for IIFL given its unique combination of superior Service, cutting-edge proprietary Technology, Advice powered by world-acclaimed research and its unparalleled Reach owing to its over 2500 business locations across over 500 cities in India. IIFL received the BQ1 broker grading (highest grading) from CRISIL. The assigned grading reflects an effective external interface, robust systems framework and strong risk management. The grading also reflects IIFLs healthy regulatory compliance track record and adequate credit risk profile. IIFLs analyst team won Zee Business Indias best market analysts awards 2009 for being the best in the Oil and Gas and Commodities sectors and a finalist in the Banking and IT sectors. IIFL has rapidly emerged as one of the premier institutional equities houses in India with a team of over 25 research analysts, a full-fledged sales and trading team coupled with an experienced investment banking team. The Institutional equities business conducted a very successful Enterprising India global investors conference in Mumbai in March 2010, which was attended by funds with aggregate AUM over US$5 trillion and CEOs and other executives representing corporates with a combined market capitalization of over US$500 billion. The Discover Sri Lanka global investors conference, held in Colombo in July 2010, was attended by more than 50 leading global and major local investors and 25 Sri Lankan corporates, along with senior Government officials.

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Commodities IIFL offers commodities trading to its customers vide its membership of the MCX and the NCDEX. Our domain knowledge and data based on in depth research of complex paradigms of commodity kinetics, offers our customers a unique insight into behavioral patterns of these markets. Our customers are ideally positioned to make informed investment decisions with a high probability of success.

Credit and finance IIFL offers a wide array of secured loan products. Currently, secured loans (mortgage loans, margin funding, loans against shares) comprise 94% of the loan book. The Company has discontinued its unsecured products. It has robust credit processes and collections mechanism resulting in overall NPAs of less than 1%. The Company has deployed proprietary loan-processing software to enable stringent credit checks while ensuring fast application processing. Recently the company has also launched Loans against Gold.

Insurance IIFL entered the insurance distribution business in 2000 as ICICI Prudential Life Insurance Co. Ltds corporate agent. Later, it became an Insurance broker in October 2008 in line with its strategy to have an open architecture model. The Company now distributes products of major insurance companies through its subsidiary India Infoline Insurance Brokers Ltd. Customers can choose from a wide bouquet of products from several insurance companies including Max New York Life Insurance, MetLife, Reliance Life Insurance,
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Bajaj Allianz Life, Birla Sunlife, Life Insurance Corporation, Kotak Life Insurance and others. Wealth Management Service IIFL offers private wealth advisory services to high-net-worth individuals (HNI) and corporate clients under the IIFL Private Wealth brand. IIFL Private Wealth is managed by a qualified team of MBAs from IIMs and premier institutes with relevant industry experience. The team advises clients across asset classes like sovereign and quasi-sovereign debt, corporate and collateralized debt, direct equity, ETFs and mutual funds, third party PMS, derivative strategies, real estate and private equity. It has developed innovative products structured on the fixed income side. It also has tied up with Interactive Brokers LLC to strengthen its execution platform and provide investors with a global investment platform.

Investment Banking IIFLs investment banking division was launched in 2006. The business leverages upon its strength of research and placement capabilities of the institutional and retail sales teams. Our experienced investment banking team possesses the skill-set to manage all kinds of investment banking transactions. Our close interaction with investors as well as corporates helps us understand and offer tailor-made solutions to fulfill requirements. The Company possesses strong placement capabilities across institutional, HNI and retail investors. This makes it possible for the team to place large issues with marquee investors.

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De-Mat A/c, Re-Mate A/c, And Trading A/c De-mat account Definition: De-mat account is a safe and convenient means of holding securities just like a bank account is for funds. Today, practically 99.9% settlement (of shares) takes place on De-mat mode only. Thus, it is advisable to have a Beneficiary Owner (BO) account to trade at the exchanges. Benefits Of De-mat Account: 1. A safe and convenient way of holding securities (equity and debt instruments both). 2. Transactions involving physical securities are costlier than those involving DeMaterialized securities (just like the transactions through a bank teller are costlier than ATM transactions). Therefore, charges applicable to an investor are lesser for each transaction. 3. Securities can be transferred at an instruction immediately. 4. Increased liquidity, as securities can be sold at any time during the trading hours (between 9:55 AM to 3:30 PM on all working days), and payment can be received in a very short period of time. 5. No stamp duty charges. 6. Risks like forgery, thefts, bad delivery, delays in transfer etc, associated with physical certificates, are eliminated. 7. Pledging of securities in a short period of time. 8. Reduced paper work and transaction cost.
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9. Odd-lot shares can also be traded (can be even 1 share). 10. Nomination facility available. 11. Any change in address or bank account details can be electronically intimated to all companies in which investor holds any securities, without having to inform each of them separately. 12. Securities are transferred by the DP itself, so no need to correspond with the companies. 13. Shares arising out of bonus, split, consolidation, merger etc. are automatically credited into the De-mat account of the investor. 14. Shares allotted in public issues are directly credited in to De-mat account of the applicants in quick time. Opening a De-mat Account To start dealing in securities in electronic form, one needs to open a De-mat account with a DP of his choice. An investor already having shares in physical form should ensure that he gets the account opened in the same set of names as appearing on the share certificate; otherwise a new account can be opened in any desired pattern by the investor. Note: The agreement required to be signed by the investor details the rights and duties of the investor and DP. DP may revise the charges by giving a 30 days prior notice. SEBI has rationalized the cost structure for inaction by removing account opening charges, transaction charges for credit of securities and custody charges, effective from January 28, 2005. Maximum Number of holders in a De-mat Account A maximum of three persons are allowed to open a joint De-mat account in their names
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DIFFERENT TYPES OF DE-MATERIALISATION Definition: De-Materialization is the process of converting physical shares(share certificates) into an electronic form. Shares once converted into De-Materialized form are held in a De-mat account. De-Materialization Process : An investor having securities in physical form must get them De-Materialized, if he intends to sell them. This requires the investor to fill a De-mat Request Form (DRF)

which is available with every DP and submit the same along with the physical certificates. Every security has an ISIN (International Securities Identification Number). If there is more than one security than the equal number of DRFs has to be filled in. The whole process goes on in the following manner.

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40

THINGS INVESTORS SHOULD KNOW ABOUT ACCOUNT OPENING AND DEMATERIALISATION Providing the bank account details at the time of account opening. It is mandatory for an investor to provide his bank account details at the time of opening a De-mat account. This is done to safeguard investor's own interests. There are two major reasons for this:1.The interest and dividend warrants can't be en-cashed by any unauthorized person, as the bank account number is mentioned on it.2.It is convenient and time saving, as dividends and interests given by the companies can be directly credited to the investor's bank account (through ECS facility, wherever available). Change in bank account details It is possible for an investor to make changes to the details of his bank account. The investor must inform any change in his bank account details to his DP. This enables him to receive the cash corporate benefits (such as dividends, interests) directly into his account in time and discourages any unauthorized use by any second party. Change in the address of investor as provided to the DP Any change in your address should be immediately informed to DP. This enables DP to make necessary changes in the records and informing the concerned companies about the same. Opening multiple accounts An investor is allowed to open more than one account with existing DP or with different DPs.

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Minimum balance of securities required in De-mat account There is no stipulated minimum balance of securities to be kept in a De-mat account. Account opening and ownership pattern of securities One must make sure to open a De-mat account in the same ownership pattern in which the physical securities are held. For example: If you have two share certificates, one in your individual name (say 'X') and the other held jointly with some other individual (say 'XY'), then in such a case you will have to open two different accounts in respective ownership patterns (one in your name i.e. 'X' and the other account in the name of 'XY'). Same combination of names on certificates but different sequence of names on the certificates or De-mat account Regulations provide that the client receives a contract note indicating details like order number, trade number, time, price, brokerage, etc. within 24 hour of the trade. In case of any doubts about the details of the contract note, you (investor) can avail the facility provided by NSE, wherein you can verify the trades on your

websitewww.nseindia.com/content/equities/eq_trdverify.htm. The Exchange generates and maintains an audit trail of orders/trades for a number of years, and you can counter check details of order/trade with the Exchange. Holding a joint account on "Either or Survivor" basis like a bank account No investor can open a De-mat account on "E or S" basis like a bank account. Allowing somebody else to operate your De-mat account It is possible for an account holder (Beneficiary Owner) to authorize some other person to operate the De-mat account on his behalf by executing a power of attorney. After submitting

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the power of attorney to the DP, that person can operate the account on behalf of the beneficiary owner (BO).. Addition/deletion of the names of the account holders after opening the account It is not possible to make changes in the names of the account holders of a BO account. A new account has to be opened in a desired holding/ownership pattern. Closing a De-Mat account and transfer of securities to another account with same or different DP An investor, if he wants, can also close his De-Mat account with one DP and transfer all the securities to another account with existing or a different DP. As per a SEBI circular issued on November 09, 2005, there are no charges for account closure or transfer of securities by an investor from one DP to another Freezing/Locking a De-Mat account The account holder can freeze his De-Mat account for a desired time period. A frozen account prevents securities to be transferred out of (Debit) and transferred into (Credit) the account. De-Materialized shares do not have any distinctive number De-Materialized securities are fungible assets. Therefore they are interchangeable and identical. Re materialization The process of getting the securities in an electronic form, converted back into the physical form is known as De-Materialization. An investor can rematerialize his shares by filling in a Re mat Request Form (RRF).The whole process goes on as follows:

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44

Note: Depository An organization that facilitates holding of securities in the electronic form and enables DPs to provide services to investors relating to transaction in securities. There are two depositories in India, namely NSDL and CDSL. As per a SEBI guideline, the minimum net worth stipulated for a depository is Rs.100 crore. NSDL/CDSL The securities are held in depository accounts, like the funds are held in bank accounts. There are two depositories in India namely NSDL and CDSL. NSDL (NationalSecurities Depository limited) was established in August 1996 and is the first depository in India. CDSL (Central Depository Securities Limited) is the other depository and was established in 1999. DP (Depository Participant) A Depository Participant can be a financial organization like banks, brokers, financial institutions, custodians, etc., acting as an agent of the Depository to make its services available to the investors. There are a total of 1334 DPs registered with SEBI, as on March 31, 2009 and each DP is assigned a unique identification number known as DP-ID. Trading account: It is that type of account with the help of which a De-Mat account holder can buy or sell shares. India Infoline Ltd. Provide their customer software Trade Terminal for trading by free of cost and unlimited number of scripts. Formalities required for opening of De-Mat and Trading a/c in India Infoline Ltd. For Individual
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 PAN Card(compulsory for all joint holders) Address proof of all joint holders Specimen copy of cheque For NRI Foreign and Indian Address proof PAN Card(compulsory) Bank a/c indicating type of a/c as NRE/NRO Specimen copy of cheque For HUF Address proof and identity proof of karta PAN Card of HUF(compulsory) Specimen copy of cheque Declaration giving details of the family members of the HUF with their names, date of birth & relationship with the Karta. For Minor Minor PAN Card Birth certificate of minor Address and identity proof of guardian Specimen copy of cheque India Infoline offer three types of De-Mat a/c and Trading a/c these are as follows: Individual Account Account opening charge 555/Margin Money- 2555/- (minimum) Exposure 3 times for intraday & 5 times for delivery. Software installation charge- NIL Annual Maintenance Charge- NIL Brokerage- Intraday-.05% & Delivery-.50%
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Joint Holders Account Account opening charge-555/NRI ACCOUNT

India Infoline outlet offers the following services:-

Online BSE and NSE executions. Free access to invest advice from India Infolines Research team. Daily Research Reports and Market Review (Market Mantra). Pre Market Report (Market Mantra by inserting proper dates). Daily trading calls based on Technical Analysis. Personalized Advice Live Market Information. Depository Services: De-mat and Re-mat Transactions. Derivatives Trading. Commodities Trading. IPOS & Mutual Funds Distribution. Internet- based Online Trading(TT-Manager).

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COMPARITIVE STUDY BETWEEN DIFFERENT BROKERAGEFIRMS

A/C opening charge-0/Name of the software used-Trader Terminal. Software installation charge-Nil. No. of scripts provided by the software-Unlimited. Maintenance charge -Nil. Exposure-8 times (intra day) 3 times (delivery). Name of the bank with the help of which customer get the facility of net bankingHDFC Bank, Axis Bank, ICICI Bank. Services provided-Equity,IPO,MF,PMS,Commodities,Insurance,WealthManagement Services, Mortgages. DP sells charge-15 per instruction + service tax. Brokerage-0.05% intraday0.50% deliveries. Transaction Report-SMS, mail, daily courier, Prepaid Scheme-Not available.

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Types of trading accounts provided-De-Mat a/c, Trading a/c , Margin a/c. Network-1341 branches and 800000customers. Margin money-Minimum 2555/Secrecy-Telephone logger with recorder. A/C opening charge-500/Name of the software used-Not available one can access through net. Maintenance charge-Rs.450/- from 2ndyear. Exposure-5 times for margin and 25 times for margin plus. Name of the bank with the help of which customer get the facility of net bankingICICI(providing zero balance in saving account) Services provided - Equity, IPO, Commodities, Insurance, Mutual Funds, GOI bonds ,Derivatives, And Postal Savings. Brokerage-Intra day-0.10%-0.15%Delivery- 0 .4%-0.85% Transaction Report-Through Courier(free of cost) Prepaid Scheme-Not available.

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A/C opening charge-900/Name of the software used-PIB(Power India Bulls) Software installation charge-750/No. of scripts provided by the software-Unlimited Maintenance charge-Nil Exposure-20 times intraday and 8 times delivery. Name of the bank with the help of which customer get the facility of net banking-HDFC,IDBI, ICICI and Axis Bank.

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Services provided-Equity, Housing Loan, Personnel Loan, Insurance. DP sell charge-10/Brokerage-Intraday-.03% &Delivery-.50% Transaction Report-Through mail &courier(Free of cost) Prepaid Scheme-not available. Types of trading accounts provided-Cash a/c , Intra a/c, Margin a/c. Network-718 branches and 4500000 customers across the country. Margin money-NIL Secrecy-use logger phone so that the broker cannot go beyond their word. A/C opening charge-750/Name of the software used-Keat Software installation charge-NIL Maintenance charge-Rs.360/Exposure-4 times of intraday. Name of the bank with the help of which customer get the facility of net banking-HDFC, AXIS Bank, ICICI Bank, SBI, City Bank , KOTAK.
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Services provided-Equity, IPO,MF. DP sell charge-23/Brokerage-intraday- .03%-.06% &Delivery-.59%-.98% Transaction Report-Through mail (free of cost) Prepaid Scheme-not available. Types of trading accounts provide-De-Mat a/c ,Trading a/c, Margin a/c. Network-890 branches and 63500 customers across the country. Margin money Secrecy-Log in password changes after 14 days. A/C opening charge-415/Name of the software used-Java Software installation charge-500/Maintenance charge-300/Exposure-4 times( For Intraday) Name of the bank with the help of which customer get the facility of net banking - HDFC, ICICI, AXIS Bank, City Bank, Standard Chartered Bank.
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Services provided-Equities,Derivatives,ebroking,PMS,IPO,Commodities,Depository Services. DP sell charge-included in the a/c opening. Brokerage-intraday-0 .03% & Delivery-0.30% Transaction Report-Through Courier(Free of Cost) Prepaid Scheme-not available. Types of trading accounts provided-De-Mat a/c, Trading a/c ,Bank a/c. Network-5,30,234 customers in over 377 cities and 1200 business locations Margin money-it is not restricted. Secrecy-128-bit SSL technology to ensure the highest security on online transactions. A/C opening charge-750/Name of the software used-Java Software installation charge-NIL Maintenance charge-Rs.50/-p.a Exposure-5 times(For Intraday) Name of the bank with the help of which customer get the facility of net banking - ICICI bank, AXIS bank, HDFC bank, IDBI.
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Services provided-Equity Trading, Derivatives, Forex, Commodity ,IPO,MF& Insurance. DP sell charge-12/Brokerage-intraday-0.05%-0.07%& Delivery-0.25%-0.40% Transaction Report-By mail(Free of Cost),Prepaid Scheme-not available. Types of trading accounts provided-De-Mat a/c ,Trading a/c ,Commodity a/c. Network-10000 outlet in5000 different cities and 22 lakh customers. Margin money-it is not restricted. Secrecy-Extra Security Features with Security Token which is the most secure and tested technology in the computer world. Customers account issafeguarded with a unique security number that changes every 32 seconds. A/C opening charge-450/Name of the software used-Odin, Software installation charge-900/Maintenance charge - 250/- from 3rd year. Exposure - 20 times for intraday. Name of the bank with the help of which customer get the facility of net banking- AXIS bank ,ICICI bank, HDFC bank

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Services provided-Equity, Commodities, Insurance, Wealth Management Services, Insurance, Investment Banking. DP sell charge-8/Brokerage-intraday-.03% & Delivery-.3% Transaction Report-Through mail(Free of Cost) Prepaid Scheme-Not available. Types of trading accounts provided-De-Mat a/c, Trading a/c, Margin a/c. Network-1837 locations more than 498 cities. Margin money-50000/- for R-ALLY & R-ALLY Lite.10000/-for R-ALLY Pro. Secrecy-Password provided to the customer has to change every after 15days. A/C opening charge - 750/Name of the software used - Java ssn. Software installation charge - nil Maintenance charge - unlimited Exposure - 4 times for intraday and delivery both. Name of the bank with the help of which customer get the facility of net bankingAXIS bank, HDFC bank, UBI, IDBI, City Bank.
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Services provided-Equity, IPO, MF, Derivatives, Commodities. DP sell charge-NIL Brokerage-intraday-0.05%-.07% & Delivery-.25%-.40% Transaction Report-Through mail(Free of Cost) Prepaid Scheme-yes Types of trading accounts provided-Classic a/c (for sudden user)Spend Trade a/c(for frequent user) Network-510 centers across 170 cities 2,18,000 customers. Margin money-Rs.5000/Secrecy-Security Socket Layer(SSL),a security that the information transmitted between customer and agent , given by Versign , universally accepted world wide web. The security encryption level in Sharekhan is 128bit. A/C opening charge- 650/Software installation charge- NIL Maintenances charge - NIL Exposure - 5 times for intraday and 7 times for delivery. Name of the bank with the help of which customer get the facility of net banking - HDFC Bank, SBI, ICICI Bank.

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Services provided-Equity, MF, Commodities, Derivatives, IPO,PMS. DP sells charge-5/Brokerage-Intraday-.03% , Delivery-.30% Transaction Report-Through mail and courier (Free of Cost) Prepaid Scheme-not available. Types of trading accounts provided-De-Mat a/c, Trading a/c, Bank a/c. Network-500 branches across 85 countries and 450000customers. Margin money-NIL/Secrecy-Telephone with recorder A/C opening charge - 731/Name of the software used Odin, Software installation charge - NIL Maintenances charge - 300/Exposure - 4 times, and if the person cant return money within 5 days then extra 15 days he will get and 16% charge will be taken for that. Name of the bank with the help of which customer get the facility of net bankingAXIS bank, ICICI bank, HDFC bank, SBI.
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Services provided-E broking, PMS, Investment advisory, Wealth Management Services, Commodity Trading. DP sells charge-12/Brokerage-intraday-.03% & Delivery- .3% Transaction Report - Through courier(Free of Cost) Prepaid Scheme-Not available. Types of trading accounts provided-De-Mat a/c, Trading a/c ,Margin a/c. Network-120 branches across 120 cities and 31 regional offices. Margin money-5000/Secrecy-Log in ID and Password change on a regular basis and telephone with recorder. A/C opening charge- 799/Name of the software used- Sun Java. Software installation charge- NIL Maintenances charge- 500/- from 2nd year. Exposure- 5 times for intraday.

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Name of the bank with the help of which customer get the facility of net banking- HDFC,SB I, ICICI, Axis Bank. Services provided- Equity, IPO, PMS, Derivatives, Mutual Funds. Brokerage- Delivery-.50% & Intraday-.05% Transaction Report- Through mail/courier (Free of cost) Prepaid Scheme- not available. Types of trading accounts provided- De-Mat a/c, Trading a/c, Margin a/c. Network- 480 branches in 230 cities. Margin money- 5000/Secrecy- password cannot be accessed through internet. HDFC Securities offer the highest level of security such as 128-bit encryption and SSL(Secured Socket Layer) technology

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COMPARATIVE ANALYSIS OF CHARGES AND FACILITIES PROVIDED BY DIFFERENT COMPANIES

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RESULT TABLE 1 CUSTOMER AWARENESS TOWARDS SHARE MARKET PREFERENCE RESPONSE

ONLINE

150

OFFLINE

450

INFERENCE: The above table shows that the customer awareness towards the Share market, out of 600 most of the people they dont having the awareness about the Share market ie, 150 of them are properly having the knowledge about the Share Market remaining 450 dont have the knowledge.

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CHART - 1 CUSTOMER AWARENESS TOWARDS SHARE MARKET

Online Customer

Offline Customer

150

450

TOTAL 600 INTERESTED IN SHARE MARKET-150 NOT INTERSTED IN SHARE MARKET 450

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TABLE - 2 CUSTOMER HOLDING DE-MAT A/C DESCRIPTION RESOPONSE

HAVING DE-MAT AC

100

NOT HAVING DEMAT-AC

50

INFERENCE: From the table we come to know that most of the people having De-mat Ac, and rest of them they dont have. Out of 150 people who were interested in share market 100 peoples already

had de-mat a/c, and 50 doesnt have de-mat a/c

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CHART - 2 CUSTOMER HOLDING DE-MAT A/C

Online Customer

Offline Customer

50

100

TOTAL-150 NOT HAVING DE-MAT ACCOUNT-50 HAVING DE-MAT ACCOUNT-100

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TABLE 3 CUSTOMERS HOLDING DE-MAT A/C IN DIFFERENT BROKING FIRMS FIRMS India infoline Reliance money HDFC Sharekhan Idia bulls ICICI Direct Kta Securities Motilaloswal Angel Broking Religare RESPONSE 30 18 15 10 8 7 5 3 3 1

INFERENCE:

The graph indicates distribution of number of customers of different broking firms among hundred customers who are already having De-Mat account. Most of the Respondents are having the De-mat account in India Info line.

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CHART 3 CUSTOMERS HOLDING DE-MAT A/C IN DIFFERENT BROKING FIRMS

No of Customer
35 30 25 20 15 No of Customer 10 5 0

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TABLE 4 CUSTOMER SEGMENTATION FIRMS RESPONSE

ONLINE

30

OFFLINE

70

INFERENCE:

Among the 100 customers who are having De-Mat account in various broking firms the pie chart shows that 30%of the customers are doing online trading, and 70% of the customers are offline trading in the share market.

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CHART 4 CUSTOMER SEGMENTATION

70

30

Online Customer

Offline Customer

TOTAL -100 ONLINE CUSTOMERS -30 OFFLINE CUSTOMERS -70

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TABLE - 5 CUSTOMER APPROACH TO A BROKING FIRM FIRMS RM Approach Friends Recommendation Internet add Via Hand Bills Adds in News Papers RESPONSE 56 19 12 7 6

INFERENCE: The above table Shows that the Customer Approach to a Broking Firm, it indicates Most of the customer they have been approach the Relationship Manager, so the Relationship Manager Having the most Interaction towards the customer.

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CHART - 5 CUSTOMER APPROACH TO A BROKING FIRM

RESPONSE
Adds in News Papers Via Hand Bills Internet add Friends Recommendation RM Approach 0 10 20 30 40 50 60 RESPONSE

TOTAL-100 RELATIONSHIP MANAGER APPROACH-56 FRIENDS RECOMMANDATION -19 THROUGH INERNET ADVERTISEMENT- 12 VIA HAND BILLS- 7 READING ADVERTISEMENT IN NEWS PAPER- 6

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TABLE 6 CUSTOMER SATISFACTION FIRMS India infoline Reliance money HDFC Sharekhan Idia bulls ICICI Direct Kta Securities Motilaloswal Angel Broking Religare SATISFIED 24 13 9 9 7 4 3 3 1 1 DISSATISFIED 6 5 6 1 1 2 1 2 1 1 TOTAL 30 18 15 10 8 6 4 5 2 2

INFERENCE: The table Shows that customer satisfaction towards the Share Broking Firms. From the table we can conclude that most of the customers highly satisfied toward the India info line service and policies. Its having the less no of Dis-satisfied customers.

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CHART 6 CUSTOMER SATISFACTION

30 25 20 15 10 5 0 SATISFIED DISSATISFIED TOTAL

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TABLE 7 CUSTOMER DISSATISFACTION OF INDIA INFOLINE IN DIFFERENT SERVICES FIRMS RESPONSE

ONLINE

OFFLINE

TRANSACTION

Total customers :6 Online service: 1 Offline service : 3 Transaction : 1

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CHART 7 CUSTOMER DISSATISFACTION OF INDIA INFOLINE IN DIFFERENT SERVICES

RESPONSE

ONLINE OFFLINE TRANSACTION

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CHAPTER VI FINDING, RECOMMENDATION FINDINGS Brokerage of India infoline is higher than Others brokingfirms like Religare, MotilalOswal,Indiabulls,they are charging0 .03% for Intraday and 0 .30% for Delivery where IndiaInfoline is taking 0 .05% for Intraday and 0 .50% for Delivery. Margin money of India infoline is higher than other firm like Indiabulls, Geojit, Motilal Oswal, there is no restriction of margin moneye. But in India Infoline, the minimum margin money should be 5000/2555 rs.. Exposure is less than other firms. India Infoline offers eight times exposure on margin where as Relegate and India bulls offer twenty times exposure on margin money. HDFC, ICICI direct provide their customers three types of account (de-mat a/c, trading a/c, bank a/c) but India infoline provide only De-mat a/c and Trading a/c. Religare takes Rs.299 for lifetime services, where as India infoline takes Rs.555. Relationship manager changes many times, it creates problem for the offline customers . Securities are not so much reliable. India Infoline has hidden charges, Customer are not much aware about that. Customer satisfaction of India Infoline not so good. Most of the customers are trading offline. Most of the customers approach towards the broking firm is through the relationship manager. Most of the people are not much aware of share market and its benefit.

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RECOMMENDATION To increase awareness about Share Market and the nameIndiaInfoline itself, the company should organize campaign.The campaign can be weakly, monthly, yearly, it will give agood result to the company to capture market in thecompetitive position. The company should reduce the margin money. It can helpto acquire more customers, if the firms bring plans for noboundation of margin money. The Company should increase their focus on the less marginmoney customers also .It can help to make more customersof low margin money which can increase the revenue of thefirm. The Relationship managers focus only to the highmargin money customer because from them they will get high brokerage that should not be happened from the lessmargin money customer. Transaction error should be avoided .Transaction should bedone properly, taking in consideration that it is one of themost required quality of a firm. Wrong transaction or default transaction may lead the prestige of the company to bedown Brokerage rate should be reduced. Religare,MotilalOswal,Indiabulls, are charging as 0 .03% for Intraday and 0 .30% for Delivery where as India Infoline is charging 0 .05%for Intraday and 0 .50% for Delivery.Though it is negotiablebut for high margin money customer not for less marginmoney customer. The Company should increase Exposure. It is the good toolto capture the market.

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CHAPTER VII CONCLUSION I am much thankful to Indiainfoline for providing me theopportunity for doing training programme in the organization asmanagement trainee. While doing my sip in the reputed brokingfirm India infoline I had got a chance for knowing and analyzingthe share market. I was also able to know about the businessenvironment and business ethics of the business world. I alsocame to know about what does a firm or an organization requireor wants from a employee or a trainee. From the survey, I foundthat India infoline is in the top three position in the share market

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BIOGRAPHY I had collected the data as from various recourses fromInternet,Library,Companyitself.The sources are given below.. 1. www.traderji.com 2. reliance money obtain approval for acquiring stake in nmce www.reliancemoney.com 3. executive summary available at www.indiainfoline.comaccessed 10 July 2009 4. annual audited consolidate results available at www.www.motilaloswal.com. 5. www.5paisa.com 6. www.indiabulls.com 7. www.icicidirect.com 8. www.sharekhan.com 9. www.tradersedgeindia.com 10. www.tradingpicks.com 11. www.masteroftrading.com 12. www.kotaksecurities.com 13. www.religareonline.com 14. www.angeltrade.com 15. www.google.com

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APPENDIX 2 INDIA INFO LINE PROFIT & LOSS A/C (Rs. in Crores) Particulars INCOME : Sales Turnover Excise Duty Net Sales Other Income Stock Adjustments Total Income EXPENDITURE : Raw Materials Power & Fuel Cost Employee Cost Other Manufacturing Expenses Selling and Administration Expenses Miscellaneous Expenses Less: Pre-operative Expenses Capitalised Total Expenditure Operating Profit Interest 909.83 50.62 55.46 18.27 17.00 0.22 0.00 1,051.40 403.05 114.76 634.70 548.11 37.46 26.42 52.48 47.94 13.95 9.23 669.42 473.69 293.85 32.21 27.69 22.40 42.56 33.49 28.89 12.08 11.59 7.98 0.05 0.00 6.97 0.06 0.00 9.47 7.17 0.12 0.00 1,437.05 0.00 1,437.05 0.00 17.40 974.47 777.87 0.00 0.00 976.40 750.84 477.41 0.00 0.00 0.00 Jun-11 Jun-10 Jun-09 Jun-08 Jun-07 Jun-06

974.47 777.87 54.98 21.58 13.55 40.08

976.40 750.84 477.41 251.87 21.86 13.88 43.69 5.32 10.79

1,454.45 1,043.00 839.53 1,271.96 778.02 502.08

16.08 13.71 0.17 0.00 1.82 0.00

754.84 647.23 288.16 192.30 83.04 43.32

764.30 553.49 361.90 507.66 224.53 140.18 29.10 22.60 19.11

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Gross Profit Depreciation Profit Before Tax Tax Fringe Benefit tax Deferred Tax Reported Net Profit Extraordinary Items Adjusted Net Profit Adjst. below Net Profit P & L Balance brought forward Statutory Appropriations Appropriations P & L Balance carried down Dividend Preference Dividend Equity Dividend % Earnings Per Share-Unit Curr Earnings Per Share(Adj)-Unit Curr Book Value-Unit Curr

288.29 125.56 162.73 48.90 0.00 0.00 113.83 -0.05 113.88 0.00 0.80 0.00 82.00 32.63 5.53 0.00 20.00 8.16 4.08 135.12

205.12 148.98 96.22 70.13 108.90 78.85 32.56 24.79 0.00 0.00 0.00 0.00

478.56 201.93 121.07 53.28 35.88 28.03 425.28 166.05 93.04 78.34 18.73 0.00 0.00 8.42 0.00

0.00 30.16 17.92 346.94 117.16 66.70 -0.02 -0.01 -0.05

76.34 54.06 -0.11 -1.25

76.45 55.31 0.00 0.00

346.96 117.17 66.75 0.00 41.41 0.00 0.00 0.00

12.17 21.43 0.00 0.00

5.02 24.57 0.00 0.00

87.71 63.32 0.80 12.17 5.05 0.00 2.24 0.00

366.92 80.77 86.25 21.43 41.41 2.24 0.00 9.21 0.00 5.02 5.92 0.00

20.00 10.00 5.98 2.99 4.79 2.40

10.00 50.00 50.00 30.90 12.56 11.13 15.45 6.28 5.57

128.13 131.41

126.82 87.77 39.63

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BALANCE SHEET (Rs. in Crores) Particulars SOURCES OF FUNDS : Share Capital Reserves Total Total Shareholders Funds Secured Loans Unsecured Loans Total Debt Total Liabilities APPLICATION OF FUNDS : Gross Block Less : Accumulated Depreciation Less:Impairment of Assets Net Block Lease Adjustment Capital Work in Progress Investments Current Assets, Loans & Advances Inventories Sundry Debtors Cash and Bank Loans and Advances 416.61 330.41 408.47 345.81 314.46 227.49 509.19 232.77 244.26 192.87 92.48 234.76 161.01 149.95 337.80 184.91 116.67 122.39 94.90 77.15 3,007.84 2,574.62 1,395.26 1,172.74 433.54 0.00 310.77 0.00 214.81 0.00 152.89 0.00 756.71 403.91 139.68 103.80 0.00 0.00 27.68 25.23 22.43 22.43 18.41 11.84 Jun-11 Jun-10 Jun-09 Jun-08 Jun-07 Jun-06

1,842.43 1,591.08 1,451.30 1,399.86 1,870.11 1,616.31 1,473.73 1,422.29 1,887.90 1,835.03 0.00 179.58 482.55 220.19 702.74 430.44 229.48 659.92

789.53 222.74 807.94 234.58 158.60 149.42 360.35 474.66 518.95 624.08

1,887.90 2,014.61

3,758.01 3,630.92 2,176.47 2,082.21 1,326.89 858.66

2,574.30 2,263.85 1,180.45 1,019.85 0.00 51.73 13.03 0.00 282.33 15.74 0.00 414.96 22.35 0.00 395.78 21.84

617.03 300.11 0.00 0.00

128.34 186.87 55.11 54.00

264.72 164.31 176.42 102.19

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Total Current Assets Less : Current Liabilities and Provisions Current Liabilities Provisions Total Current Liabilities Net Current Assets Miscellaneous Expenses not written off Deferred Tax Assets Deferred Tax Liability Net Deferred Tax Total Assets Contingent Liabilities

1,501.30 1,283.91

764.37

833.67

680.20 438.55

375.91 6.44 382.35

209.02 5.89 214.91

190.63 2.62 193.25 571.12 0.00 0.00 0.00 0.00

186.31 2.62 188.93 644.74 0.00 0.00 0.00 0.00

124.29 105.70 29.50 15.17

153.79 120.87 526.41 317.68 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

1,118.95 1,069.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

3,758.01 3,630.92 2,188.88 2,082.21 1,326.89 858.66 1.26 3.15 1.54 1.25 0.10 0.02

82

EQUITY CAPITAL STRUCTURE (Rs.in Cr)

Year

Authorised

Issued

Subscribed

Called Up

Less : Calls in Arrears 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

Forfeited

Paid Up

2011 2010 2009 2008 2007 2006 2005 2004 2003 2002 2001 2000 1999

30.00 30.00 30.00 30.00 25.00 25.00 15.00 15.00 15.00 15.00 10.00 10.00 10.00

27.68 25.23 22.43 22.43 18.41 11.84 11.84 11.84 11.84 11.84 8.14 5.54 5.54

27.68 25.23 22.43 22.43 18.41 11.84 11.84 11.84 11.84 11.84 8.14 5.54 5.54

27.68 25.23 22.43 22.43 18.41 11.84 11.84 11.84 11.84 11.84 8.14 5.54 5.54

0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

27.68 25.23 22.43 22.43 18.41 11.84 11.84 11.84 11.84 11.84 8.14 5.54 5.54

83