Project Inkhil Final1

PROJECT REPORT ON
Sharekhan
(Customer buying preference.)
SUBMITTED BY:
SARVAIYA NIKHIL J.
SUBMITTED TO:
GIDC RAJJU SHROFF ROFEL INSTITUTE OF MANAGEMENT
STUDIES
VAP I
GUIDED BY:
ANITHA THOMAS
GIDC RAJJU SHROFF ROF! I"S#I#U# OF $%A"AG %A"# SUDIS
$

ABOUT INDUSTRY
HISTORY OF THE STOCK BROKING INDUSTRY
In&i'n Stoc( %'r(ets 're one of t)e o*&est in Asi'. Its )istory &'tes b'c( to ne'r*y
+,, ye'rs 'go. #)e e'r*iest recor&s of security &e'*ings in In&i' 're me'ger 'n&
obscure.
-y $./,0s business on corpor'te stoc(s 'n& s)'res in -'n( 'n& Cotton presses too(
p*'ce in -omb'y. #)oug) t)e tr'&ing *ist 1's bro'&er in $./23 t)ere 1ere on*y )'*f
' &o4en bro(ers recogni4e& by b'n(s 'n& merc)'nts &uring $.5, 'n& $.6,. #)e
$.6,0s 1itnesse& ' r'pi& &e7e*opment of commerci'* enterprise 'n& bro(er'ge
business 'ttr'cte& m'ny men into t)e fie*& 'n& by $.8, t)e number of bro(ers
incre'se& into 8,.
In $.8,98$ t)e Americ'n Ci7i* :'r bro(e out 'n& cotton supp*y from Unite& St'tes
of urope 1's stoppe&; t)us3 t)e 0S)'re %'ni'0 in In&i' begun. #)e number of
bro(ers incre'se& to 'bout +,, to +6,. Ho1e7er3 't t)e en& of t)e Americ'n Ci7i*
:'r3 in $.863 ' &is'strous s*ump beg'n (for e<'mp*e3 -'n( of -omb'y S)'re 1)ic)
)'& touc)e& Rs +.6, cou*& on*y be so*& 't Rs. .=). At t)e en& of t)e Americ'n
Ci7i* :'r3 t)e bro(ers 1)o t)ri7e& out of Ci7i* :'r in $.=53 foun& ' p*'ce in '
street (no1 'ppropri'te*y c'**e& 's D'*'* Street) 1)ere t)ey 1ou*& con7enient*y
'ssemb*e 'n& tr'ns'ct business.
In $..=3 t)ey form'**y est'b*is)e& in -omb'y3 t)e >"'ti7e S)'re 'n& Stoc(
-ro(ers0 Associ'tion> (1)ic) is '*tern'ti7e*y (no1n 's >#)e Stoc( <c)'nge>). In
$.263 t)e Stoc( <c)'nge 'c?uire& ' premise in t)e s'me street 'n& it 1's
in'ugur'te& in $.22. #)us3 t)e Stoc( <c)'nge 't -omb'y 1's conso*i&'te&.
#)us in t)e s'me 1'y3 gr'&u'**y 1it) t)e p'ss'ge of time number of e<c)'nges
1ere incre'se& 'n& 't current*y it re'c)e& to t)e figure of +5 stoc( e<c)'nges.
GIDC RAJJU SHROFF ROF! I"S#I#U# OF +%A"AG %A"# SUDIS
+

DEVELOPMENT
An import'nt e'r*y e7ent in t)e &e7e*opment of t)e stoc( m'r(et in In&i' 1's t)e
form'tion of t)e "'ti7e S)'re 'n& Stoc( -ro(ers@ Associ'tion 't -omb'y in $.=63
t)e precursor of t)e present9&'y -omb'y Stoc( <c)'nge. #)is 1's fo**o1e& by
t)e form'tion of 'ssoci'tions Ae<c)'nges in A)me&'b'& ($.25)3 C'*cutt' ($2,.)3
'n& %'&r's ($2/=). I" '&&ition3 ' *'rge number of ep)emer'* e<c)'nges emerge&
m'in*y in buoy'nt perio&s to rece&e into ob*i7ion &uring &epressing times
subse?uent*y.
In or&er to c)ec( suc) 'berr'tions 'n& promote ' more or&er*y &e7e*opment of t)e
stoc( m'r(et3 t)e centr'* go7ernment intro&uce& ' *egis*'tion c'**e& t)e Securities
Contr'cts (Regu*'tion) Act3 $268. Un&er t)is *egis*'tion3 it is m'n&'tory on t)e p'rt
of ' stoc( e<c)'nges to see( go7ernment recognition. As of J'nu'ry +,,+ t)ere
1ere +/ stoc( e<c)'nges recogni4e& by t)e centr'* Go7ernment. #)ey 're *oc'te&
't A)em&'b'&3 -'ng'*ore3 -'ro&'3 -)ub'nes)1'r3 C'*cutt'3 C)enni3(t)e %'&r's
stoc( <c)'nges )3 Coc)in3 Coimb'tore3 De*)i3 Gu1')'ti3 Hy&erb'&3 In&ore3
J'ipur3 B'npur3 !u&)i'n'3 %'ng'*ore3 %umb'i(t)e "'tion'* Stoc( <c)'nge or
"S)3 %umb'i (#)e Stoc( <c)'nge)3 popu*'r*y c'**e& t)e -omb'y Stoc(
<c)'nge3 %umb'i (O#C <c)'nge of In&i')3 %umb'i (#)e Inter9connecte& Stoc(
<c)'nge of In&i')3 C'tn'3 Cune3 'n& R'D(ot. Of course3 t)e princip*e bourses 're
t)e "'tion'* Stoc( <c)'nge 'n& #)e -omb'y Stoc( <c)'nge3 'ccounting for t)e
bu*( of t)e business &one on t)e In&i'n stoc( m'r(et.
:)i*e t)e recogni4e& stoc( e<c)'nges )'7e been 'ccor&e& ' pri7i*ege& position3
t)ey 're subDect to go7ernment'* super7ision 'n& contro*. #)e ru*es of ' recogni4e&
stoc( e<c)'nges re*'ting to t)e m'n'geri'* po1ers of t)e go7erning bo&y3
'&mission3 suspension3 e<pu*sion3 'n& re9'&mission of its members3 'ppointment of
'ut)ori4e& represent'ti7es 'n& c*er(s3 so on 'n& so fort) )'7e to be 'ppro7e& by t)e
go7ernment. #)ese ru*es c'n be 'men&e&3 7'rie& or rescin&e& on*y 1it) t)e prior
'ppro7'* of t)e go7ernment. #)e Securities Contr'cts (Regu*'tion) Act 7ests t)e
go7ernment 1it) t)e po1er to m'(e en?uiries into t)e 'ff'irs of ' recogni4e& stoc(
e<c)'nge 'n& its business3 1it)&r'1 t)e recognition t)e t's( of regu*'ting t)e stoc(
e<c)'nge to t)e Securities <c)'nges -o'r& of In&i'.
GIDC RAJJU SHROFF ROF! I"S#I#U# OF /%A"AG %A"# SUDIS
/

BSE !BOMBAY STOCK E"CHANGE#
#)e Stoc( <c)'nge3 %umb'i3 popu*'r*y (no1n 's $BSE$ 1's est'b*is)e& in $.=6
's $The Na%&'e Share an( S%)*k Br)ker+ A++)*&a%&)n$. It is t)e o*&est one in
Asi'3 e7en o*&er t)'n t)e #o(yo Stoc( <c)'nge3 1)ic) 1's est'b*is)e& in $.=.. It
is ' 7o*unt'ry non9profit m'(ing Associ'tion of Cersons (AOC) 'n& is current*y
eng'ge& in t)e process of con7erting itse*f into &emutu'*ise& 'n& corpor'te entity.
It )'s e7o*7e& o7er t)e ye'rs into its present st'tus 's t)e premier Stoc( <c)'nge
in t)e country. It is t)e first Stoc( <c)'nge in t)e Country to )'7e obt'ine&
perm'nent recognition in $268 from t)e Go7t. of In&i' un&er t)e Securities
Contr'cts (Regu*'tion) Act3 $268.
#)e <c)'nge3 1)i*e pro7i&ing 'n efficient 'n& tr'nsp'rent m'r(et for tr'&ing in
securities3 &ebt 'n& &eri7'ti7es up)o*&s t)e interests of t)e in7estors 'n& ensures
re&ress'* of t)eir grie7'nces 1)et)er 'g'inst t)e comp'nies or its o1n member9
bro(ers. It '*so stri7es to e&uc'te 'n& en*ig)ten t)e in7estors by con&ucting in7estor
e&uc'tion progr'm 'n& m'(ing '7'i*'b*e to t)em necess'ry inform'ti7e inputs.
A Go7erning -o'r& )'7ing +, &irectors is t)e 'pe< bo&y3 1)ic) &eci&es t)e po*icies
'n& regu*'tes t)e 'ff'irs of t)e <c)'nge. #)e Go7erning -o'r& consists of 2
e*ecte& &irectors3 1)o 're from t)e bro(ing community (one t)ir& of t)em retire
e7er ye'r by rot'tion)3 t)ree S-I nominees3 si< pub*ic represent'ti7es 'n& 'n
<ecuti7e Director E C)ief <ecuti7e Officer 'n& ' C)ief Oper'ting Officer.
GIDC RAJJU SHROFF ROF! I"S#I#U# OF 5%A"AG %A"# SUDIS
5

NSE!NATIONAL STOCK E"CHANGE#
"S 1's incorpor'te& in $22+ 'n& 1's gi7en recognition 's ' stoc( e<c)'nge in
Apri* $22/. It st'rte& oper'tions in June $2253 1it) tr'&ing on t)e :)o*es'*e Debt
%'r(et Segment. Subse?uent*y it *'unc)e& t)e C'pit'* %'r(et Segment in
"o7ember $225 's ' tr'&ing p*'tform for e?uities 'n& t)e Futures 'n& Options
Segment in June +,,, for 7'rious &eri7'ti7e instruments.
"S )'s been 'b*e to t'(e t)e stoc( m'r(et to t)e &oorsteps of t)e in7estors. #)e
tec)no*ogy )'s been )'rnesse& to &e*i7er t)e ser7ices to t)e in7estors 'cross t)e
country 't t)e c)e'pest possib*e cost. It pro7i&es ' n'tion91i&e3 screen9b'se&3
'utom'te& tr'&ing system3 1it) ' )ig) &egree of tr'nsp'rency 'n& e?u'* 'ccess to
in7estors irrespecti7e of geogr'p)ic'* *oc'tion. #)e )ig) *e7e* of inform'tion
&issemin'tion t)roug) on9*ine system )'s )e*pe& in integr'ting ret'i* in7estors on '
n'tion91i&e b'sis. #)e st'n&'r&s set by t)e e<c)'nge in terms of m'r(et pr'ctices3
Cro&ucts 3 tec)no*ogy 'n& ser7ice st'n&'r&s )'7e become in&ustry benc)m'r(s 'n&
're being rep*ic'te& by ot)er m'r(et p'rticip'nts. :it)in ' 7ery s)ort sp'n of time3
"S )'s been 'b*e to 'c)ie7e '** t)e obDecti7es for 1)ic) it 1's set up. It )'s been
p*'ying ' *e'&ing ro*e 's ' c)'nge 'gent in tr'nsforming t)e In&i'n C'pit'* %'r(ets
to its present form. #)e In&i'n C'pit'* %'r(ets 're ' f'r cry from 1)'t t)ey use& to
be ' &ec'&e 'go in terms of m'r(et pr'ctices3 infr'structure3 tec)no*ogy3 ris(
m'n'gement3 c*e'ring 'n& sett*ement 'n& in7estor ser7ice.
6

NCDE" !NATIONAL COMMODITIES AND
DERIVATIVES E"CHANGE#
"CDF st'rte& 1or(ing on $6
t)
December +,,/. #)is e<c)'nge pro7i&es f'ci*ities
to t)eir tr'&ing 'n& c*e'ring member 't &ifferent $/, centers for contr'ct.
In commo&ity m'r(et t)e m'in p'rticip'nts 're specu*'tors3 )e&gers 'n&
'rbitr'geurs.
Cromoters of "CDF 're
"'tion'* Stoc( <c)'nge ("S)
ICICI b'n(
!ife Insur'nce Corpor'tion (!IC)
"'tion'* -'n( for Agricu*tur'* 'n& Rur'* De7e*opment ("A-ARD)
IFFICO
CunD'b "'tion'* -'n( (C"-)
CRISI!
,HY NCDE"-
"CDF is n'tion'*i4e& screen b'se& system 1)ic) is pro7i&ing tr'nsp'rent3
pri7'te 'n& e'sy ser7ices.
"CDF is one of t)e tr'&ition'* me&i' 1)ic) gi7es on*ine inform'tion
"CDF is one of t)e In&i'n commo&ity e<c)'nge3 constructe& on t)e b'sis
of t)e current n'tion'* institutes t)e e<c)'nge )'s been est'b*is)e& 1it) t)e
co*or'tion of *e'&ing institutes *i(e "A-ARD3 !IC3 "SI etcG.
In In&i' "CDF )'s m'<imum sett*ement gu'r'ntee fun&.
"CDF )'s 'ppointe& t1o e<ports for c)ec(ing ?u'*ity 't t)e time of
&e*i7ery
FACILITIES PROVIDED BY NCDE"
"CDF )'s &e7e*ope& f'ci*ity for c)ec(ing of commo&ity 'n& '*so
pro7i&es ' 1e'r )ouse f'ci*ity
-y co**'bor'ting 1it) in&ustri'* p'rtners3 in&ustri'* comp'nies3 ne1s
'gencies3 b'n(s 'n& &e7e*opers of (ios( net1or( "CDF is 'b*e to pro7i&e
current r'tes 'n& contr'cts r'te.
#o prep're gui&e*ines re*'te& to speci'* pro&ucts of securiti4'tion "CDF
1or(s 1it) b'n(.
#o '7'i* f'rmers from ris( of f*uctu'tion in prices "CDF pro7i&es speci'*
ser7ices for 'gricu*tur'*.
"CDF is 1or(ing 1it) t'< officer to m'(e c*e'r &ifferent types of s'*es
'n& ser7ice t'<es.
"CDF is pro7i&ing 'ttr'cti7e pro&ucts *i(e H1e't)er &eri7'ti7esI
8

GIDC RAJJU SHROFF ROF! I"S#I#U# OF =%A"AG %A"# SUDIS
=

MC"!MULTI COMMODITY E"CHANGE#
.MULTI COMMODITY E"CHANGE/ of In&i' *imite& is ' ne1 or&er e<c)'nge
1it) ' m'n&'te for setting up ' n'tion1i&e3 on*ine mu*ti9commo&ity m'r(et p*'ce3
offering un*imite& gro1t) opportunities to commo&ities m'r(et p'rticip'nts. As '
true neutr'* m'r(et3 %CF )'s t'(en se7er'* initi'ti7es for users in ' ne1 gener'tion
commo&ities futures m'r(et in t)e process3 become t)e country@s premier
e<c)'nge.
%CF3 'n in&epen&ent 'n& ' &e9mutu'*i4e& e<c)'nge since inception3 is '** set up to
intro&uce ' st'te of t)e 'rt3 on*ine &igit'* e<c)'nge for commo&ities futures tr'&ing
in t)e country 'n& )'s 'ccor&ing*y initi'te& se7er'* steps to tr'ns*'te t)is 7ision into
re'*ity.
Marke% ,a%*h:
#)e m'r(et 1'tc) 1in&o1 is use& to 7ie1 t)e m'r(et &et'i*s for ' p'rticu*'r or
group of contr'cts 'n& for ' p'rticu*'r instrument type. #)is 1in&o1 &isp*'ys t)e
fo**o1ing &et'i*sJ Symbo*3 <piry3 price ?uot'tion unit3 buy ?ty3 buy price3 se**
price3 se** ?ty3 *'st tr'&e& price3 D.C.R3 7o*ume (in ,,,@s)3 7'*ue (in *'c()3 K
c)'nge3 '7er'ge tr'&e price3 )ig)3 *o13 open3 c*ose E open interest.
GIDC RAJJU SHROFF ROF! I"S#I#U# OF .%A"AG %A"# SUDIS
.

SROCK MARKET BASIC
,ha% are *)r0)ra%&)n+-
Comp'nies 're st'rte& by in&i7i&u'*s or m'y be ' sm'** circ*e of peop*e.
#)ey poo* t)eir money or obt'in *o'ns3 r'ising fun&s to *'unc) t)e business.
A c)oice is m'&e to org'ni4e t)e business 's ' so*e proprietors)ip 1)ere one
Cerson or ' m'rrie& coup*e o1ns e7eryt)ing3 or 's ' p'rtners)ip 1it) ot)ers 1)o
m'y 1is) to in7est money. !'ter t)ey m'y c)oose to >incorpor'te>. As '
Corpor'tion3 t)e o1ners 're not person'**y responsib*e or *i'b*e for 'ny &ebts of t)e
comp'ny if t)e comp'ny &oesn0t succee&. Corpor'tions issue offici'*9*oo(ing s)eets
of p'per t)'t represent o1ners)ip of t)e comp'ny. #)ese 're c'**e& stoc(
certific'tes3 'n& e'c) certific'te represents ' set number of s)'res. #)e tot'* number
of s)'res 1i** 7'ry from one comp'ny to 'not)er3 's e'c) m'(es its o1n c)oice
'bout )o1 m'ny pieces of o1ners)ip to &i7i&e t)e corpor'tion into. One
corpor'tion m'y )'7e on*y +36,, s)'res3 1)i*e 'not)er3 suc) 's I-% or t)e For&
%otor Comp'ny3 m'y issue o7er ' bi**ion
s)'res. Comp'nies se** stoc( (pieces of o1ners)ip) to r'ise money 'n& pro7i&e
fun&ing for t)e e<p'nsion 'n& gro1t) of t)e business. #)e business foun&ers gi7e
up p'rt of t)eir o1ners)ip in e<c)'nge for t)is nee&e& c's). #)e e<pect'tion is t)'t
e7en t)oug) t)e o1ners )'7e surren&ere& ' portion of t)e comp'ny to t)e
pub*ic3 t)eir rem'ining s)'re of stoc( 1i** become incre'sing*y 7'*u'b*e 's t)e
business gro1s. Corpor'tions 're not '**o1e& to se** s)'res of stoc( on t)e open
stoc( m'r(et 1it)out t)e 'ppro7'* of t)e Securities 'n& <c)'nge Commission
(SC). #)is tr'nsition from ' pri7'te*y )e*& corpor'tion to ' pub*ic*y tr'&e& one is
c'**e& going pub*ic3 'n& t)is first s'*e of stoc( to t)e pub*ic is c'**e& 'n initi'*
pub*ic offering3 or ICO.
2

,h1 () 0e)02e &n'e+% &n %he +%)*k 3arke%-
:)en you buy stoc( in ' corpor'tion3 you o1n p'rt of t)'t comp'ny. #)is gi7es
you ' 7ote 't 'nnu'* s)'re)o*&er meetings3 'n& ' rig)t to ' s)'re of future profits.
:)en ' comp'ny p'ys out profits to t)e s)'re)o*&er3 t)e money recei7e& is c'**e&
' >Di7i&en&>.
>(LDM I I MMN I *-f O KO I PM M I
#)e corpor'tion0s bo'r& of &irectors c)oose 1)en to &ec*'re ' &i7i&en& 'n& )o1
muc) to p'y. %ost o*&er 'n& *'rger comp'nies p'y ' regu*'r &i7i&en&3 most ne1er
'n& sm'**er comp'nies &o not.
#)e '7er'ge in7estor buys stoc( )oping t)'t t)e stoc(0s price 1i** rise3 so t)e
s)'res c'n be so*& 't ' profit. #)is 1i** )'ppen if more in7estors 1'nt to buy
stoc( in ' comp'ny t)'n 1is) to se**. #)e potenti'* of ' sm'** &i7i&en& c)ec( is of
*itt*e concern.
:)'t is usu'**y responsib*e for incre'se& interest in ' comp'ny0s stoc( is t)e
prospect of t)e comp'ny0s s'*es 'n& profits going up.
A comp'ny 1)o is ' *e'&er in ' )ot in&ustry 1i** usu'**y see its s)'re price
rise &r'm'tic'**y.
In7estors t'(e t)e ris( of t)e price f'**ing bec'use t)ey )ope to m'(e more money
in t)e m'r(et t)'n t)ey c'n 1it) s'fe in7estments suc) 's b'n( CD0s or go7ernment
bon&s.
,ha% &+ a +%)*k 3arke% &n(e4-
In t)e stoc( m'r(et 1or*&3 you nee& ' 1'y to comp're t)e mo7ement of t)e
m'r(et3 up 'n& &o1n3 from &'y to &'y3 'n& from ye'r to ye'r. An in&e< is Dust '
benc)m'r( or y'r&stic( e<presse& 's ' number t)'t m'(es it possib*e to &o t)is
comp'rison. For e.g. SEC C"F "ifty is t)e in&e< of "S 'n& S"SF is t)e
in&e< of -S.
GIDC RAJJU SHROFF ROF! I"S#I#U# OF $,%A"AG %A"# SUDIS
$,

Marke% Ca0
As you become f'mi*i'r 1it) stoc( 'n& mutu'* fun& in7esting3 you 1i**
encounter t)e term >C'p>3 's in Sm'**9C'p3 %i&9C'p3 'n& !'rge9C'p. C'p is s)ort
for c'pit'*i4'tion.
As ' stoc( m'r(et term3 t)e c'pit'*i4'tion of ' comp'ny is c'*cu*'te& by
mu*tip*ying t)e tot'* number of s)'res by t)e current price per s)'re. If ' comp'ny
)'s 6,, mi**ion s)'res tr'&ing 't Q+, ' s)'re3 its m'r(et c'p is Q$, bi**ion
(6,,3,,,3,,, < Q+,). #)is is t)e tot'* 7'*ue of t)e comp'ny0s stoc(3 t)e 7'*ue t)'t
t)e 1or*& of stoc( m'r(et in7estors )'s p*'ce& on t)e comp'ny ('t *e'st for
to&'y3 in7estors 're ?uic( to c)'nge t)eir min&s).
%uc) of t)is percei7e& 7'*ue is &ue to t)e e<pect'tions of ' comp'ny0s future
prospects.
%'r(et c'p is not &ict'te& by )o1 >big> ' comp'ny is.
#o&'y3 1e &efine ' *'rge9c'p comp'ny 's one 1)ose stoc( is 7'*ue& 't o7er Q$,
bi**ion (some sti** s'y o7er Q6 bi**ion)3 ' mi&9c'p from Q$ to Q$, bi**ion3 ' sm'**9
c'p from Q+6, mi**ion to Q$ bi**ion3 'n& ' comp'ny 1)ose stoc( 7'*ue is un&er
Q+6, mi**ion 's ' micro9c'p. Depen&ing on 1)om you *isten to or )o1 o*& your
reference boo( is3 t)ese &efinitions 1i** 7'ry.
A re*'te& point 9 &on0t t)in( ' comp'ny is big Dust bec'use it )'s ' )ig) stoc(
price3 or t)'t it is sm'** Dust bec'use its stoc( price is *o1.
For e<'mp*e3 Disney tr'&ing 't Q+/ is not sm'**er t)'n -'rnes E "ob*e tr'&ing 't
Q//3 since Disney )'s +3,5.382,3,,, s)'res outst'n&ing (c'**e& t)e >f*o't>) 'n&
-E" )'s Dust 8.36.63,,, s)'res. #)'t0s ' Q5.= bi**ion m'r(et c'p for Disney
7ersus on*y Q++8 mi**ion for -'rnes E "ob*e.
#)e price per s)'re3 *i(e t)e m'r(et c'p3 )'s not)ing to &o 1it) )o1 big ' comp'ny
is.
GIDC RAJJU SHROFF ROF! I"S#I#U# OF $$%A"AG %A"# SUDIS
$$

#)e Securities %'r(et consists of t1o segments3 7i4. Crim'ry m'r(et 'n&
Secon&'ry m'r(et. Crim'ry m'r(et is t)e p*'ce 1)ere issuers cre'te 'n& issue
e?uity3 &ebt or )ybri& instruments for subscription by t)e pub*ic; t)e Secon&'ry
m'r(et en'b*es t)e )o*&ers of securities to tr'&e t)em.
Secon&'ry m'r(et essenti'**y comprises of stoc( e<c)'nges3 1)ic) pro7i&e
p*'tform for purc)'se 'n& s'*e of securities by in7estors. In In&i'3 'p'rt from
t)e Region'* Stoc(
<c)'nges est'b*is)e& in &ifferent centers3 t)ere 're e<c)'nges *i(e t)e
"'tion'* Stoc(
<c)'nge ("S) 'n& t)e O7er t)e Counter <c)'nge of In&i' (O#CI)3 1)o
pro7i&e n'tion 1i&e tr'&ing f'ci*ities 1it) termin'*s '** o7er t)e country. #)e
tr'&ing p*'tform of stoc( e<c)'nges is 'ccessib*e on*y t)roug) bro(ers 'n& tr'&ing
of securities is confine& on*y to stoc( e<c)'nges.
#)us3 t)e securities m'r(et )'s t1o in&epen&ent3 insep'r'b*e segments3 t)e ne1
issues (prim'ry) m'r(et 'n& t)e stoc( (secon&'ry) m'r(et. #)e prim'ry m'r(et
pro7i&es c)'nne* for s'*e of ne1 securities 1)i*e t)e secon&'ry m'r(et &e'*s in
securities pre7ious*y issue&. #)e issuer of securities se**s t)e securities to t)e
prim'ry m'r(et to r'ise fun&s for in7estment 'n&Aor to &isc)'rge some ob*ig'tions.
#)e secon&'ry m'r(et en'b*es t)em 1)o )o*& securities to '&Dust t)eir )o*&ings in
response to c)'nge in t)eir 'ssessment of ris( 'n& return. #)ey '*so se** securities
for c's) to meet t)eir *i?ui&ity nee&s.
#)e corpor'te securities m'r(et &'tes b'c( to t)e $.R century 1)en t)e securities
of t)e 'st In&i' Comp'ny 1ere tr'&e& in %umb'i 'n& Bo*('t'. #)e bro(ers
use& to g't)er un&er ' b'ny'n tree in %umb'i 'n& un&er ' neem tree in Bo*('t'
for t)e purpose. Ho1e7er3 t)e re'* beginning c'me in t)e $.6,s 1it) t)e
intro&uction of t)e Doint stoc( comp'nies 1it) *imite& *i'bi*ity. #)e $.8,s
1itnesse& be7eris) &e'*ings in securities 'n& securities specu*'tion. #)is broug)t
bro(ers to -omb'y toget)er in Ju*y $.=6 to boom t)e first org'ni4e& stoc(
e<c)'nge in t)e country3 7i4. #)e Stoc( <c)'nge3 %umb'i3 A)em'&'b'& Stoc(
<c)'nge in $.25 'n& ++ ot)ers fo**o1e& 1it) +,R century.
#)e Stoc( <c)'nges 're t)e e<c*usi7e centers for tr'&ing in e?uities 'n& t)e
tr'&ing p*'tform of 'n e<c)'nge is 'ccessib*e on*y to bro(ers. #)e regu*'tory
fr'me1or( )e'7i*y f'7ors t)e recogni4e& stoc( e<c)'nges by '*most b'nning
tr'&ing 'cti7ity outsi&e t)e stoc( e<c)'nges. #)e securities 're &i7i&e& into t1o
p'rts 7i4. Corpor'te securities 'n& Go7ernment Securities
C)r0)ra%e Se*5r&%&e+ :
#)e no of stoc( e<c)'nges incre'se& from $$ in $22, to +/ no1. A** t)e
e<c)'nges 're fu**y computeri4e& 'n& offer $,,K on9*ine tr'&ing. 2855 comp'nies
1ere '7'i*'b*e for tr'&ing on stoc( e<c)'nges 't t)e en& of %'rc) +,,+. #)e
GIDC RAJJU SHROFF ROF! I"S#I#U# OF $+%A"AG %A"# SUDIS
$+

tr'&ing p*'tform of t)e stoc( e<c)'nges 1's 'ccessib*e to 28.= members from
o7er 5,, cities on t)e s'me &'te.
#)e sector'* &istribution of turno7er )'s un&ergone signific'nt c)'nge o7er *'st
fe1
Se'rs. #)e s)'re of m'nuf'cturing comp'nies in turno7er of top 06,0 comp'nies3
1)ic) 1's ne'r*y .,K in $2269283 &ec*ine& s)'rp*y to 'bout 8K in +,$9,+. During
t)e s'me perio& t)e s)'re of I# comp'nies in turno7er incre'se& s)'rp*y from ni* in
$226928 to 8=K in +,,$9,+.
G)'ern3en% Se*5r&%&e+:
#)e 'ggreg'te turno7er in centr'* 'n& st'te go7ernment &'te& securities3 inc*u&ing
tre'sury bi**s3 t)roug) SG! tr'ns'ctions incre'se& /$ times bet1een $225926 'n&
+,,$9,+. During +,,$9,+ it re'c)e& ' *e7e* of Rs. $36=/3.2/ core3 )ig)er t)'n
combine& tr'&ing 7o*umes in e?uity segments of '** t)e e<c)'nges in t)e country3
ref*ecting &eepening of t)e m'r(et. #)e s)'re of outrig)t tr'ns'ctions in go7ernment
securities incre'se& from +/.+K in $226928 to ==K in +,,$9,+. #)e s)'re of repo
tr'ns'ctions &ec*ine& correspon&ing*y from =8..K in $226928 to +/K in +,,$9,+. #)e
S)'re of &'te& securities in turno7er of go7ernment securities incre'se& from 82K in
$22892= to 25K in +,,$9,+. #)e #9bi**s 'ccounte& for rem'ining SG! turno7er.
Der&'a%&'e+ Marke%:
Deri7'ti7es tr'&ing commence& in In&i' in June +,,,. #)e tot'* e<c)'nge tr'&e&
&eri7'ti7es 1itnesse& ' 7o*ume of Rs. 55+3/5/ crore &uring +,,+9,/ 's 'g'inst Rs.
5,$. crore &uring t)e prece&ing ye'r. :)i*e "S 'ccounte& for 'bout 22.6K of tot'*
turno7er3 -S 'ccounte& for 'bout ,.6K in +,,+9,/. #)e m'r(et 1itnesse& )ig)er
7o*umes from June +,,$ 1it) intro&uction of in&e< options3 'n& sti** )ig)er
7o*umes 1it) intro&uction of stoc( options in Ju*y +,,$. #)ere 1's ' spurt in 7o*umes
in "o7ember +,,$ 1)en stoc( futures 1ere intro&uce&. It is be*ie7e& t)'t In&i' is
t)e *'rgest m'r(et in t)e 1or*& for stoc( futures.
#)e stoc( m'r(et or secon&'ry m'r(et ensures free m'r(et'bi*ity3 negoti'bi*ity 'n&
price &isc)'rge. For t)ese re'sons t)e stoc( m'r(et is referre& to 's t)e ner7e center
of t)e c'pit'* m'r(et3 ref*ecting t)e economic tren& 's 1e** 's t)e )opes3 'spir'tions
'n& 'ppre)ensions of t)e in7estors. Stoc( %'r(et is '*so c'**e& t)e b'rometer of t)e
economy.
GIDC RAJJU SHROFF ROF! I"S#I#U# OF $/%A"AG %A"# SUDIS
$/

#)e bro'& structure of t)e secon&'ry m'r(et 's on %'rc) /$3 +,,, is presente&
be*o1J
Stoc( <c)'nges
<c)'nges 1it) Screen -'se& #r'&ing system
<c)'nges )'7ing #r'&eASett*ement Gu'r'ntee Fun&
<c)'nges 1it) Internet #r'&ing
Registere& %embers (bro(ers)
Registere& Foreign -ro(ers
Registere& Corpor'te %embers
Registere& Sub9-ro(ers
Registere& FIIS
!iste& Comp'nies
%'r(et C'pit'*i4'tion Rs. $$2+8/, crore
#urno7er &uring $2229+,,, Rs. +,8=,/$ crore
S50021 an( De3an(
A stoc(0s price mo7ement up 'n& &o1n unti* t)e en& of t)e tr'&ing &'y3 is strict*y '
resu*t of supp*y 'n& &em'n&. #)e SUCC!S is t)e number of s)'res offere& for
s'*e 't 'nyone one moment. #)e D%A"D is t)e number of s)'res in7estors
1is) to buy 't e<'ct*y t)'t s'me time. :)'t ' s)'re of ' comp'ny is 1ort) on
'nyone &'y or 't 'ny one minute3 is &etermine& by '** in7estors 7oting 1it) t)eir
money. If in7estors 1'nt ' stoc( 'n& 're 1i**ing to p'y more3 t)e price 1i** go up.
If in7estors 're se**ing ' stoc( 'n& t)ere 'ren0t enoug) buyers3 t)e price 1i** go
&o1n. Cerio&.
H)6 ()e+ )ne 751 +%)*k+-
-uying stoc(s is not 's simp*e 's 1'*(ing into ' stoc(bro(er0s office 'n& buying
s)'res *i(e you 1ou*& ' p'ir of s)oes from ' store. Sou 're re?uire& to open 'n 'ccount
1it) t)e bro(er'ge3 *i(e opening 'n 'ccount 't ' b'n(.
Some bro(ers 1i** '**o1 you to open 'n 'ccount 1it) 7ery *itt*e money. #)e firm
1i** t)en )o*& t)is money in 'n interest e'rning c's) 'ccount3 '1'iting your or&ers to
buy or se** stoc(3 or ot)er securities suc) 's bon&s or mutu'* fun&s. :)en you buy or
se**3 you p'y ' commission3 1)ic) is &e&ucte&3 from your 'ccount. :)en ' stoc( is
GIDC RAJJU SHROFF ROF! I"S#I#U# OF $5%A"AG %A"# SUDIS
$5

purc)'se&3 t)e o1ners)ip of t)e s)'res m'y be *iste& in one of t1o 1'ys. >!iste&>
me'ns )o1 t)e corpor'tion tr'c(s t)e o1ners)ip of t)eir stoc(.
If you c)oose to )'7e t)e stoc( *iste& in your n'me3 you 1i** recei7e t)e 'ctu'* stoc(
certific'tes. %ost in7estors c)oose to )'7e t)e o1ners)ip *iste& in t)e bro(er0s n'me3
c'**e& >)e*& in street n'me>3 1it) t)e bro(er (eeping tr'c( of 1)ose tr'&ing 'ccount
t)e stoc( 'ctu'**y be*ongs to. #)e benefits 're re&uce& p'per1or(3 conso*i&'te&
portfo*io st'tements3 no concerns 'bout storing 'n& processing t)e p'per
certific'tes3 'n& t)e 'bi*ity to inst'nt*y se** 'n& tr'nsfer t)e s)'res. it)er 1'y3 'ny
&i7i&en&s 're cre&ite& to your 'ccount. Stoc(s )e*& in street n'me 're insure& up to
Q6,,3,,, by t)e fe&er'* go7ernment 'g'inst fr'u& or fin'nci'* f'i*ure of t)e bro(er'ge
comp'ny.
,h1 () 0e)02e +e22 %he&r +%)*k-
#)e re'sons peop*e se** t)eir stoc( 're more comp*e<. A person m'y Dust nee& t)e
money. He or s)e m'y )'7e 1'tc)e& t)e price go up3 'n& )'7e ' )unc) t)is is ' goo&
time to *oc( in t)eir profit 'n& se** some or '** t)eir s)'res.
-'& ne1s concerning ' comp'ny or its in&ustry3 or ' &is'ppointing e'rnings report is
sure to prompt )e'7y se**ing.
An in7estor m'y see better opportunities in 'not)er comp'ny3 'n& so se** )is stoc(s t)'t
'ren0t mo7ing up. -ut usu'**y3 in7estors se** bec'use t)ey07e 1'tc)e& t)e price f'**3
'n& Dust 1'nt to get out before t)ey *ose e7en more.
Se*)n(ar1 Marke% In%er3e(&ar&e+
Stoc( bro(ers3 sub9bro(ers3 portfo*io m'n'gers3 custo&i'ns3 s)'re tr'nsfer 'gents
constitute t)e import'nt interme&i'ries in t)e Secon&'ry %'r(et.
A stoc( bro(er p*'ys ' 7ery import'nt ro*e in t)e secon&'ry m'r(et )e*ping bot) t)e
se**er 'n& t)e buyer of t)e securities to enter into ' tr'ns'ction. #)e buyer 'n& se**er
m'y be eit)er ' bro(er or ' c*ient. #)e tr'ns'ction entere& c'nnot be 'nnu**e& e<cept
in t)e c'se of fr'u&3 1i**fu* misrepresent'tion or upon prim'9f'cie e7i&ence of '
m'teri'* mist'(e in t)e tr'ns'ction3 in t)e Du&gment of t)e e<isting 'ut)orities. If '
member of t)e stoc( e<c)'nge (bro(er) )'s or&ers to buy 'n& to se** t)e s'me (in&
of securities3 )e m'y comp*ete t)e tr'ns'ction bet1een )is c*ients concerne&.
:)en e<ecuting 'n or&er t)e stoc( m'y on be)'*f of )is c*ient buy or se** securities
from )is o1n 'ccount i.e. 's princip'* or 'ct 's 'n 'gent. For e'c) tr'ns'ction )e
$6

)'s to issue necess'ry contr'ct note in&ic'ting 1)et)er )e 's princip'* or 's 'n 'gent
for 'not)er )'s entere& into t)e tr'ns'ction. :)i*e buying pr se**ing securities 's '
princip'*3 t)e stoc( bro(er )'s to obt'in t)e consent of )is c*ient 'n& t)e prices c)'rge&
s)ou*& be f'ir 'n& Dustifie& by t)e con&itions of t)e m'r(et.
A sub9bro(er is one 1)o 1or(s '*ong 1it) t)e m'in bro(er 'n& is not &irect*y registere&
1it) t)e stoc( e<c)'nge 's ' member. He 'cts on be)'*f of t)e stoc(bro(er 's 'n 'gent
or ot)er1ise for 'ssisting t)e in7estors in buying3 se**ing or &e'*ing in securities
t)roug) suc) stoc(bro(ers.
"o stoc(bro(ers or sub9bro(ers s)'** buy3 se** or &e'* in securities un*ess )e )o*&s '
certific'te of registr'tion gr'nte& by S-I un&er t)e Regu*'tions m'&e by S-I ion
re*'tion to t)em.
#)e Centr'* Go7ernment )'s notifie& S-I (Stoc( -ro(ers E Sub9-ro(ers) Ru*es3
$22+ in e<ercise of t)e po1ers conferre& by section +2 of S-I Act3 $22+. #)ese
ru*es c'me into effect on +,
t)
August3 $22+.
Ten G)2(en r52e+ 8)r In'e+%&n9
:'rren -uffet )'s suggeste& ten go*&en ru*es for in7esting 1)ic) pro7es to be
immense use to t)e in7estors 1)o 1'nt ' better in7estment in stoc( m'r(ets3
S)'reB)'n fo**o1s t)ese ru*es 1)ic) 're 's &escribe& be*o1J
$. "e7er in7est in ' business you c'nnot un&erst'n&.
+. Ris( c'n be re&uce& by concentr'ting on ' fe1 )o*&ings.
/. Stop trying to pre&ict t)e &irection of t)e stoc( m'r(et3 t)e economy3 interest
r'tes3 or e*ections.
5. -uy comp'nies 1it) strong )istories of profit'bi*ity 'n& 1it) ' &omin'nt
business fr'nc)isee.
6. -e fe'rfu* 1)en ot)ers 're gree&y 'n& gree&y 1)en ot)ers 're fe'rfu*.
8. Un*ess you c'n 1'tc) your stoc( )o*&ing &ec*ine by 6,K 1it)out becoming
p'nic9stric(en3 you s)ou*& not be in t)e stoc( m'r(et.
=. Do not t'(e ye'r*y resu*ts too serious*y. Inste'&3 focus on four or fi7e ye'r
'7er'ges.
$8

.. Focus on return on e?uity3 not e'rnings per s)'re (CS).
2. C'*cu*'te >o1ner e'rnings> to get ' true ref*ection of 7'*ue. !oo( for comp'nies
1it) )ig) profit m'rgins.
$,. A*1'ys in7est for t)e *ong term. Does t)e business )'7e f'7or'b*e *ong9term
prospectsT
GIDC RAJJU SHROFF ROF! I"S#I#U# OF $=%A"AG %A"# SUDIS
$=

HISTORY OF ONLINE TRADING:
On*ine stoc( tr'&ing is 7ery o*& concept for big institutions 1)o tr'&e
t)ru pri7'te net1or(s o1ne& by Reuter0s >In+%&ne%> 'n& ' system c'**e&
>Cosit> since $282. -ut it becomes internet b'se& for *'y men on*y in *'te 2,s.
Funny3 t)'t 'ctu'**y i&e' 1's first time use& by ' comp'ny m'(ing -eer
c'**e& >:I# beer> to )e*p its s)'re)o*&ers tr'&e its s)'res. #)'t@s )o1 >:I#
C'pit'*> 1's born 1)ic) is consi&ere& pioneer of t)is concept. It 1's m'&e
m'instre'm 'n& )ouse)o*& n'me by 'n offs)oot of C)'r*es Sc)1'b E Co c'**e&
eSc)1'b 1)ic) is use& by mi**ions of peop*e in USA. !ots of "RI0s p*'y
in US stoc( m'r(et e7en 1)en t)ey come to In&i' for )o*i&'ys3 7i' 1ebsite
of eS*h6a7e.
#)ere 're ot)er serious p*'yers *i(e E:%ra(e3 DATEK )n2&ne etc. A** t)is
comp'nies 's( you to st'rt 'ccount 1it) US Q6,,, 'n& you c'n buy 'n& se**
stoc( using t)ese fun&s. #)ey '*so issue you ' c)ec( boo( 1)ic) you c'n use
to m'(e p'yments from t)is 'ccount. Or use t)eir A#% c'r& to 1it)&r'1 c's)
from your stoc( tr'&ing 'ccount.
#o&'y pr'ctic'**y e7ery big n'me bro(er'ge firm offers on*ine stoc( tr'&ing
's it re&uces t)eir costs. 'r*ier t)ey )'& 'rmy of bro(ers on p)one 1it)
c*ients e<ecuting tr'&e3 1)ic) is &one by computers 'ccepting or&ers from
c*ients &irect*y. #)is firm no1 offers )um'n 'ccess to )ig) net 1ort) 'ccounts3 'n& to rest
't c)'rge per tr'&e.
GIDC RAJJU SHROFF ROF! I"S#I#U# OF $.%A"AG %A"# SUDIS
$.

E; BROKING ; A SMALL BEGINNING:
Sou )'7e some money to &'bb*e 1it). #r'&ing s)'res on -SA"S )'s '*1'ys been your
&re'm. :)en 1i** you e7er fin& t)e timeT An& besi&es3 t)e )'ss*e of fin&ing ' bro(er is
not e'sy. Re'*i4ing t)ere is unt'ppe& m'r(et of in7estors 1)o 1'nt to be 'b*e to e<ecute
t)eir o1n tr'&es 1)en it suits t)em3 bro(ers )'7e t'(en t)eir tr'&ing rooms to t)e Internet.
Bno1n 's on*ine bro(ers3 t)ey '**o1 you to buy 'n& se** s)'res 7i' Internet. #)ere 're +
types of on*ine tr'&ing ser7iceJ
$. Discount bro(ers 'n&
+. Fu** ser7ice on*ine bro(er.
Discount on*ine bro(ers '**o1 you to tr'&e 7i' Internet 't re&uce& r'tes. Some pro7i&e
?u'*ity rese'rc)3 ot)er &on@t. Fu** ser7ice on*ine bro(er'ge is *in(e& to e<isting
bro(er'ges. #)ese bro(ers '**o1 t)eir c*ients to p*'ce on*ine or&ers 1it) t)e option of
t'*(ingA c)'tting to bro(ers if '&7ice is nee&e&. -ro(er'ge r'tes )ere 're )ig)er.
6C'is'.com3 ICICIDirect.com3 In&i'-u**s.com3 S)'re()'n.com3 GeoDit securities.com3
HDFCsec.com3 #'t't&1.com3 Bot'(street.com 're some of t)e on*ine bro(ing sites in
In&i'. :it) "et tr'&ing in securities 'n& r'pi& conso*i&'tion bet1een mu*tip*e stoc(
e<c)'nges3 t)e intern'tion'* securities m'r(etp*'ce is f'st becoming ' >g*ob'* 7i**'ge>
t)roug) t)e cre'tion of ' uni7ers'* 7irtu'* e?uity m'r(et.
Comp're& to t)e :estern countries3 on*ine tr'&ing is sti** in its inf'ncy in In&i'. :it)
tr'&ing turno7er 't 'roun& Rs. $, crores per &'y from on*ine tr'&ing comp're& to '
combine& gross turno7er of 'roun& Rs. 2,,,9$,3,,, crores )'n&*e& by t)e -S 'n& "S
toget)er3 on*ine tr'&ing )'s ' *ong 1'y to go.
$2

INTERNET TRADING IN INDIA:
In t)e p'st3 in7estors )'& no option but to cont'ct t)eir bro(er to get re'* time 'ccess to
m'r(et &'t'. #)e "et brings &'t' to t)e in7estor on *ine 'n& net bro(ing en'b*es )im to
tr'&e on ' c*ic(. "o1 inform'tion )'s become e'si*y 'ccessib*e to bot) ret'i* 's 1e** 's
big in7estors.
#)e &e7e*opment of bro(ing in In&i' c'n be c'tegori4e& in / p)'sesJ
<. Stoc( bro(ers offering on t)eir sites fe'tures suc) 's *i7e portfo*io m'n'ger3 *i7e
?uotes3 m'r(et rese'rc) 'n& ne1s to 'ttr'ct more in7estors.
=. -ro(ers offering on *ine bro(ing 'n& re*'tions)ip m'n'gement by pro7i&ing 'n&
offering 'n'*ysis 'n& inform'tion to in7estors &uring bro(ing 'n& non9bro(ing
)ours b'se& on t)eir profi*e 'n& nee&s3 t)'t is3 customi4e& ser7ices.
>. -ro(ers (no1 e9bro(ers) 1i** offer 7'*ue m'n'gement or ser7ices suc) 's initi'*
pub*ic offerings on *ine3 'sset '**oc'tion3 portfo*io m'n'gement3 fin'nci'*
p*'nning3 t'< p*'nning3 insur'nce ser7ices 'n& en'b*e t)e in7estors to t'(e better
'n& 1e**9consi&ere& &ecisions.
In t)e US3 .+ per cent of t)e &e'*s 're &one on *ine. #)e urope'n on *ine bro(ing m'r(et
is e<pecte& to be of Q. bi**ions 'n& is *i(e*y to r'ise fi7e fo*& by +,,+. In In&i'3 present*y
Internet tr'&ing c'n t'(e p*'ce t)roug) t)e or&er routing system3 1)ic) 1i** route c*ient
or&ers to e<c)'nges tr'&ing systems for e<ecution of tr'&es on stoc( e<c)'nges ("S 'n&
-S). #)is 1i** '*so re?uire interf'ce 1it) b'n(s to f'ci*it'te inst'nt c's) &ebit or cre&it
'n& t)e &epository system for &ebit or cre&it of securities.
GIDC RAJJU SHROFF ROF! I"S#I#U# OF +,%A"AG %A"# SUDIS
+,

OBJECTIVES OF INTERNET TRADING:
Incre'se tr'nsp'rency in t)e m'r(ets.
n)'nce m'r(et ?u'*ity t)roug) impro7e& *i?ui&ity3 by incre'sing ?uote
continuity 'n& m'r(et &ept).
Re&uce sett*ement ris(s &ue to open tr'&es3 by e*imin'tion of mism'tc)es.
Cro7i&e m'n'gement inform'tion system (%IS).
Intro&uce f*e<ibi*ity in system3 to )'n&*e gro1ing 7o*umes e'si*y 'n& to support
n'tion1i&e e<p'nsion of m'r(et 'cti7ity.
-esi&es3 t)roug) Internet tr'&ing t)ree fun&'ment'* obDecti7es of securities
regu*'tion c'n be e'si*y 'c)ie7e&3 t)ese 'reJ In7estor protection3 cre'tion of ' f'ir
'n& efficient m'r(et 'n&3 re&uction of t)e system'tic ris(s.
PROCEDURE FOR INTERNET TRADING:
S%e0;<: #)ose in7estors intereste& in &oing t)e tr'&ing o7er internet system3 t)'t
is3 "A#9ISF3 s)ou*& 'ppro'c) t)e bro(ers 'n& register 1it) t)e Stoc( -ro(er.
S%e0;=: After registr'tion3 t)e bro(er 1i** pro7i&e to t)em ' *ogin n'me3
p'ss1or& 'n& ' person'* i&entific'tion number (CI").
S%e0;>: Actu'* p*'cement of 'n or&er. An or&er c'n t)en be p*'ce& by using t)e
p*'ce or&er 1in&o1 's un&erJ
o First by entering t)e symbo* 'n& series of stoc( 'n& ot)er p'r'meters suc)
's ?u'ntity 'n& price of t)e scrip on t)e p*'ce or&er 1in&o1.

o Secon&3 fi** in t)e symbo*3 series 'n& t)e &ef'u*t ?u'ntity.
S%e0;?: It is t)e process of re7ie1. #)us3 t)e in7estor )'s to re7ie1 t)e or&er
p*'ce& by c*ic(ing t)e re7ie1 option. He m'y '*so re9set to c*e'r t)e 7'*ues.
S%e0;@: After t)e re7ie1 )'s been s'tisf'ctory; t)e or&er )'s to be sent by
c*ic(ing on t)e sen& option.
S%e0;A: #)e in7estor 1i** recei7e 'n UUOr&er Confirm'tion00 mess'ge '*ong 1it)
t)e or&er number 'n& t)e 7'*ue of t)e or&er.
GIDC RAJJU SHROFF ROF! I"S#I#U# OF +$%A"AG %A"# SUDIS
+$

S%e0;B: In c'se t)e or&er is reDecte& by t)e -ro(er or t)e Stoc( <c)'nge for
cert'in re'sons suc) 's in7'*i& price *imit3 'n 'ppropri'te mess'ge 1i** 'ppe'r 't
t)e bottom of t)e screen. At present3 ' time *'g of 'bout ten secon&s is t)ere in
e<ecuting t)e tr'&e.
S%e0;C: It is reg'r&ing c)'rging p'yment3 for 1)ic) t)ere 're &ifferent mo&es.
Some bro(ers 1i** t'(e some '&7'nce p'yment from t)e in7estors 'n& 1i** fi<
t)eir tr'&ing *imits. :)en t)e tr'&e is e<ecute&3 t)e bro(er 1i** 's( t)e in7estor for
tr'nsfer of fun&s by t)e in7estor to )is 'ccount.
#)e 'bo7e figure s)o1s )o1 t)e internet tr'&ing proce&ure.
GIDC RAJJU SHROFF ROF! I"S#I#U# OF ++%A"AG %A"# SUDIS
++

C)30an1 O'er'&e6
SHAREKHAN PVT LTD.
Stoc( bro(ing comp'ny
R'D(ot.
A((re++
Re9&+%ere( O88&*e
SHARBHA" CP# !#D.
$,+A$,/3 Hem Arc'&e3
Opp3 Pi7e('n'n& St'tue3
Dist. R'D(ot V /8, ,,$.
GuD'r't WIn&i'X
C)one "o. J (,+.$) A+5.+5./ A5A6A8
F'< J ,+.$9+588,.8
C)r0)ra%e O88&*e
SHAREKHAN PVT LTD.
A V +,83 CHO"IH HOUS3
CHO"IH %I!! COCU"D3
S"ACA#I3 -AC#A %ARG3
!O:R CAR!3
%U%-AI V 5,,,$/
C)oneJ9 $.,, 9 ++ =6,, 3 /2=, =6 ,,
:eb siteJ9 111.s)'re()'n.com
GIDC RAJJU SHROFF ROF! I"S#I#U# OF +/%A"AG %A"# SUDIS
+/

Sharekhan Gr)50
SSBI Securities C7t. !t&. ("S c'se E FE O )
S)'re()'n !t&. (-S c'se)
S)'re()'n commo&ities C7t. !t&. ( %CF E "CDF )
C)335n&*a%&)n Par%ner
-*ue !otus Communic'tions Consu*t'ncy
GIDC RAJJU SHROFF ROF! I"S#I#U# OF +5%A"AG %A"# SUDIS
+5

SHAREKHAN GROUP
Pr)3)%er J S)rip'* %or'()iy'
S)rey's %or'()iy'
Ch&e8 E4e*5%&'e O88&*er J #'run p. S)')
D&re*%)r )8 O0era%&)n J S)'n('r P'i*'y'
D&re*%)r )8 Pr)(5*% D Te*hn)2)91 J J'i&eep Aror'
Mana9er )8 Fran*h&+ee B5+&ne++ J G'ur'7 -)oD'(
SSKI E C)r0)ra%e S%r5*%5re
Morakhia Family & Associates
100%
SSKI INVESTOR SERVICES PVT. LTD
Shareholding pattern:
66.6K %or'()i' f'mi*y (promoters)
$..6K HS-C Cri7'te ?uity In&i' Fun&
!t&
$..6K First C'r*y*e Pentures3 %'uritius
=.6K Inte* C'cific Inc.
SSKI CORPORATE FINANCE
PVT. LTD.
In'e+%3en% Bank&n9 ar3 )8 %he
9r)50
Shareholding pattern:
6,.6K SSBI Securities C7t. !t&.
52.6 K %or'()i' f'mi*y
Owns 56% of Owns 50.5% of
+6

ABOUT SHAREKHAN COMPANY
INTRODUCTION
S)'re()'n is stoc( bro(ing comp'ny. S)'re B)'n comes un&er ret'i* 'rm of SSBI
(S)rip'* Se7'nti*'* B'nti*'* Is)1'r*'* ) in7estors Ser7ices C7t. !t&. offers :or*&9c*'ss
f'ci*ities for buying 'n& se**ing S)'res on -S 'n& "S3 Dem'te
Ser7ices(DC)Deri7'ti7es(FEO). SSBI group '*so comprises of Institution'* bro(ing 'n&
Corpor'te Fin'nce. S)'re()'n &oes not c*'im e<pertise in too m'ny t)ings.
S)'re()'n0s e<pertise *ies in stoc(s 'n& t)'t0s 1)'t )e t'*(s 'bout 1it) 'ut)ority. So 1)en
)e s'ys t)'t in7esting in stoc(s s)ou*& not be confuse& 1it) tr'&ing in stoc(s or '
portfo*io9b'se& str'tegy is better t)'n betting on ' sing*e )orse3 it is somet)ing t)'t is
spo(en 1it) ye'rs of focuse& *e'rning 'n& e<perience in t)e stoc( m'r(ets. An& t)ese
be*iefs 're ref*ecte& in e7eryt)ing S)'re()'n &oes for youY
#)ose of you 1)o fee* comfort'b*e &e'*ing 1it) ' )um'n being 'n& 1ou*& r't)er 7isit '
bric(9'n&9mort'r out*et t)'n t'*( to ' CC3 you0& be g*'& to (no1 t)'t S)'re()'n offers
you t)e f'ci*ity to 7isit (or t'*( to) 'ny of our s)'re s)ops 'cross t)e country. In f'ct
S)'re()'n runs In&i'0s *'rgest c)'in of s)'re s)ops 1it) o7er )un&re& out*ets in more
t)'n ., citiesY :)'t0s ' s)'re s)opT Ho1 &o you *oc'te ' s)'re s)op in your cityT
S)'re()'n is ., ye'rs o*& comp'ny 1)ic) is st'rte& on*ine in t)e ye'r +,,, E it is t)e
first comp'ny 1)o st'rte& on*ine in $2.5 t)ey 7enture& into institution'* bro(ingE
corpor'te fin'nce. #)ey )'7ing $5 br'nc)es3 5,, fr'nc)ises '*so )'7ing 6.. s)ops in +$/
cities. In R'D(ot br'nc) &'i*y &e'*ing Rs.$8 crore E 5,, crore &'i*y &e'*ing '** o7er In&i'.
A*most 5,,, emp*oyees 'n& $,,,,, tr'&ing customers.
+8

ABOUT SHAREKHAN
SSBI n'me& its on*ine &i7ision 's SHAR BHA" 'n& it is into ret'i* -ro(ing
#)e business of t)e comp'ny o7er)'u*e& 5 ye'rs 'go on Febru'ry .3 +,,,.
It 'cts 's ' &iscount bro(er'ge )ouse to ' fu** ser7ice in7estment so*utions
pro7i&er
It )'s ' $6, member strong te'm.
It )'s speci'*i4e& rese'rc) pro&uct for t)e sm'** in7estors 'n& &'y tr'&ers
!'rgest c)'in of s)'re s)ops3 6.. s)'re s)op in +$/ city.
It )'s Q+6mAtr'&es e7ery &'y.
!e'&ing p*'yer to&'y 1it) +,K m'r(et s)'re
O7er .,,, on*ine c*ients
#)e site 1's '*so *'unc)e& on Febru'ry .3 +,,, 'n& n'me& it 's
www.sharekhan.com
#)e Spee& #r'&e 'ccount of s)'re ()'n is t)e ne<t gener'tion tec)no*ogy pro&uct
*'unc)e& on Apri* $=3 +,,+
Spee&#r'&eC*us 1's *'unc)e& on October +.3 +,,+ for tr'&ing in Deri7'ti7es
It offers its customers 1it) t)e tr'&e e<ecution f'ci*ities on t)e "S3 for c's) 's
1e** 's &eri7'ti7es3 &epository ser7ices
En+5re+ *)n'en&en*e &n %ra(&n9 e40er&en*e:
S)'re B)'n@s tr'&ing ser7ices 're &esigne& to offer 'n e'sy3 )'ss*e free
tr'&ing e<perience3 1)et)er tr'&ing is &one &'i*y or occ'sion'**y. #)e
customer 1i** be entit*e& to ' )ost of 7'*ue '&&e& ser7ices3 in t)e in7estment
process &epen&ing on )is in7esting sty*e 'n& fre?uency. An& offers ' suite of
pro&ucts 'n& ser7ices3 pro7i&ing t)e customer 1it) ' mu*ti9c)'nne* 'ccess to
t)e stoc( m'r(ets.
It gi7es '&7ice b'se& on e<tensi7e rese'rc) to its customers 'n& pro7i&es t)em
1it) re*e7'nt 'n& up&'te& inform'tion to )e*p )im m'(e informe& 'bout )is
in7estment &ecisions.
S)'re ()'n offers its customers t)e con7enience of ' bro(er9DC.
GIDC RAJJU SHROFF ROF! I"S#I#U# OF +=%A"AG %A"# SUDIS
+=

It )e*ps t)e customer meet )is p'y9in ob*ig'tions on time t)ereby re&ucing t)e
possibi*ity of 'uctions. #)e comp'ny be*ie7es in f*e<ibi*ity 'n& t)erefore '**o1s
'ccepting *'te instructions 1it)out 'ny e<tr' c)'rge. An& e<ecute t)e instruction
imme&i'te*y on recei7ing it 'n& t)ere'fter t)e customer c'n 7ie1 )is up&'te&
'ccount st'tement on Internet.
S)'re()'n Depository Ser7ices offers &em't ser7ices to in&i7i&u'* 'n& corpor'te
in7estors. It )'s ' te'm of profession'*s 'n& t)e *'test tec)no*ogic'* e<pertise
&e&ic'te& e<c*usi7e*y to t)ere &em't &ep'rtment. A customer c'n '7'i* of Dem't Z
Rem't; Repurc)'se3 C*e&ge3 #r'nsmission f'ci*ities 't 'ny of t)e S)'re ()'n
br'nc)es 'n& business p'rtner@s out*ets.
GIDC RAJJU SHROFF ROF! I"S#I#U# OF +.%A"AG %A"# SUDIS
+.

VISION
H#o empo1er t)e in7estor 1it) ?u'*ity '&7ice 'n& superior ser7ice to )e*p )im t'(e better
in7estment &ecisions. :e be*ie7e t)'t our gro1t) &epen&s on c*ient s'tisf'ction.I
MISSION
#o pro7i&e t)e best customer ser7ice 'n& pro&uct inno7'tion tune& to &i7erse
nee&s of c*iente*e
Continuous up9gr'&'tion 1it) c)'nging tec)no*ogy3 1)i*e m'int'ining )um'n
7'*ues.
Respon& to progressi7e g*ob'*i4'tion 'n& 'c)ie7ing intern'tion'* st'n&'r&.
fficiency 'n& effecti7eness bui*t on et)ic'* pr'ctices.

CORE VALUE
Customer s'tisf'ction t)roug)
Cro7i&ing ?u'*ity ser7ice effecti7e*y 'n& efficient*y
HSmi*e3 it en)'nces your f'ce 7'*ue I is ' ser7ice ?u'*ity stresse& on
perio&ic customer ser7ice Au&its
%'<imi4'tion of st'(e)o*&er 7'*ue
Success t)roug) #e'm1or(3 integrity 'n& Ceop*e
+2

S,OT ANALYSIS
During t)is tr'ining 't S)'re()'n3 1e )'& come to (no1 t)e Strengt)s 9:e'(nesses
9Opportunities 99 #)re'ts for t)e comp'ny 'n& it is 7ery usefu* for ' comp'ny to 'n'*y4e
t)em. #)erefore3 t)e S:O# 'n'*ysis is presente& )ere 'n& t)e suggestions for
m'int'ining strengt)s 'n& remo7ing 1e'(nesses 're e<p*'ine&.
S%ren9%h+:
., ye'rs of rese'rc) 'n& bro(ing e<perience
F'stest -ro1ser b'se& #r'&ing
+3,,3,,, [ customer
!'rgest groun& net1or( in bro(ing 1it) 6..[ ret'i* out*ets sp'nning +$/ citiesZ
De&ic'te&3 Inte**igent 'n& !oy'* st'ff.
On9*ine #r'&ing pro&ucts.
!o1est bro(er'ge 'n& ot)er c)'rges t)'n. Competitors.
#)e best in7estment '&7ice correct up to =,92, K t)roug) &e&ic'te&
:i&e pro&uct r'nge to en'b*e t)e c*ients to c)oose t)e best '*tern'ti7e.
One of t)e best DCs in In&i'.
A positi7e im'ge in t)e e<isting c*ients.
,eakne++e+:
!ess '1'reness in t)e m'r(et.
#ime consuming process for 'ccount opening3 reso*7ing t)e prob*ems of t)e
Customers3 etc. ' Ser7ice ?u'*ity is not m'int'ine& 'ccor&ing*y )o1
t)ey 're promote&.
O00)r%5n&%&e+:
!'rge prim'ry m'r(et to sit 's ' boo( runner for t)e ot)er comp'nies
Dust *i(e Bot'( securities *t&. t)'t runs t)e boo(s of s)'re )o*&ings for
m'ny comp'nies
S*ope of stoc( m'r(et to1'r&s &e*i7ery b'se& tr'ns'ctions.
!'rge potenti'* m'r(et for &e*i7ery 'n& intr'9&'y tr'ns'ctions.
Open interest of t)e peop*e to enter in stoc( m'r(et for in7esting.
Attr'ct t)e customers 1)o 're &iss'tisfie& 1it) ot)er bro(ers E DCs. '
An in&irect opportunity gener'te& by t)e m'r(et from its bu**is)ness.
GIDC RAJJU SHROFF ROF! I"S#I#U# OF /,%A"AG %A"# SUDIS
/,

Threa%+:
Decre'sing r'tes of bro(er'ge in t)e m'r(et. '
Incre'sing competition 'g'inst ot)er bro(ers E DCs.
Coor m'r(eting 'cti7ities for m'(ing t)e comp'ny (no1n 'mong t)e customers. '
A t)re't of *oosing c*ients for 'ny (in& of 1e'(ness of t)e comp'ny. '
In&irect t)re't from inst'b*e stoc( m'r(et3 i.e.3 *o1Ano profit of S)'re()'n0s
c*ients 1ou*& *e'& t)em to go for ot)er bro(erADC.
GIDC RAJJU SHROFF ROF! I"S#I#U# OF /$%A"AG %A"# SUDIS
/$

MARKET COVERAGE

GIDC RAJJU SHROFF ROF! I"S#I#U# OF /+%A"AG %A"# SUDIS
Gr)5n( Ne%6)rk E
Lar9e+% &n In(&a
$++ Fr'nc)isees 'n& +. br'nc)es
Co7ers +$/ cities in +/ st'tes 'cross
In&i'
A*so t)ey co7er 6..9s)'re s)op in
+$/ cities.
#r'&e e<ecution f'ci*ity on -S 'n&
"S for C's) 's 1e** 's Deri7'ti7es
DepositoryADem't 'ccount ser7ices
Cerson'*i4e& S)'re()'n rese'rc) '&7ice
Uniform ser7ice st'n&'r&s
/+

SHAREKHAN/S STOCK CLUSTER
7ery in7estor@s nee&s 'n& go'*s 're &ifferent. #o meet t)ese nee&s3 S)'re()'n pro7i&es '
*)30rehen+&'e +e% )8 re+ear*h re0)r%+3 so t)'t one c'n t'(e t)e rig)t in7estment
&ecisions reg'r&*ess of t)eir in7esting preferencesY #)e Rese'rc) 'n& De7e*opment 't
S)'re()'n is &one 't its He'& office %umb'i.
#)e RED &ep'rtment He'& %r. Hem'ng J'ni for1'r&s '** t)e &et'i*s reg'r&ing '** stoc(s
'n& scripts to '** t)e br'nc)es t)roug) Internet. At t)e en& of e'c) tr'&ing &'y t)ere is '
#e*econference3 t)roug) 1)ic) t)e RED &ep'rtment He'& %R. Hem'ng J'ni t'*(s 1it)
e'c) -r'nc) )e'&s 'n& &iscusses 'bout e'c) &'y@s c*osing position 'n& s)o1s t)eir
pre&ictions 'bout ne<t &'y@s opening position. #)e ?u'rries reg'r&ing stoc( positions 'n&
ot)er re*e7'nt m'tter of t)e br'nc) )e'&s of e'c) br'nc) is being so*7e& t)roug)
te*econference.
#)e 7'rious pub*ic'tions of S)'re()'n 7i4. Deri7'ti7es Digest3 S)'re()'n@s P'*ue*ine3
'g*e eye3 Hig) "oon3 In7estor@s ye3 Commo&ities -u443 Commo&ities -e't3
Commo&ity #r'&er@s corner3 S)'re()'n Fc*usi7e3 etc. 're being prep're& by t)e rese'rc)
te'm of S)'re()'n m'&e up of )ig)*y e<perience& peop*e from &i7erse fie*&. #)ese '**
pub*ic'tion pro7i&esJ
In9&ept) 'n'*ysis of t)e m'r(ets
An'*ysis -efore3 During (*i7e m'r(et up&'tes) 'n& 'fter m'r(et
timings
Speci'* sector tr'c(ing reports sent regu*'r*y
STOCK IDEAS
Stoc( I&e's is 'ime& 't S)'re()'n0s tr'&ing c*ients. It presents our best stoc( pic(s in
to&'y0s m'r(et. :e c'tegori4e t)ese comp'nies into si< c*usters to )e*p you i&entify t)e
stoc(s t)'t fit your time )ori4ons 'n& return obDecti7es t)e best. 'c) c*uster represents '
cert'in. Crofi*e in terms of business fun&'ment'*s 's 1e** 's t)e (in& of returns you c'n
e<pect of it o7er ' cert'in time )ori4on.

STOCK CLUSTERS
S)'re()'n c'tegories '** t)e scripts t)'t 're un&er co7er'ge into 8 c*usters. 'c) c*uster
represents ' cert'in profi*e in terms of business fun&'ment'*s 's 1e** 's t)e (in& of
returns you c'n e<pect o7er ' cert'in time )ori4on. #)is )e*p in i&entifying t)e stoc(s t)'t
fit your time )ori4ons 'n& return obDecti7es best. #)e si< c*usters 'reJ 7ergreen3 App*e
Green3 merging St'r3 Ug*y Duc(*ing3 Pu*ture0s Cic( 'n& C'nnonb'**.
GIDC RAJJU SHROFF ROF! I"S#I#U# OF //%A"AG %A"# SUDIS
//

EVERGREEN
#)ese stoc(s 're ste'&y compoun&ers3 c)urning out ste'&y gro1t) r'tes ye'r on ye'r.
#)ey 're typic'**y signific'nt p*'yers in t)eir m'r(ets3 1it) soun& str'tegies t)'t 1i** )e*p
t)em 'c)ie7e 'n& sust'in m'r(et &omin'nce in t)e *ong run. #)ey )'7e strong br'n&s3
m'n'gement cre&enti'*s 'n& ' consistent tr'c( recor& of 'c)ie7ing super norm'*
s)'re)o*&er returns. :e e<pect stoc(s in t)is c'tegory to compoun& 't bet1een $.9+,K
per 'nnum for t)e ne<t fi7e to ten ye'rs. A*so c'**e& o1ners)ip stoc(s3 7ergreen stoc(s
're t)e brig)test De1e*s in 'ny portfo*io.
APPLE GREEN
#)ese 're stoc(s t)'t )'7e t)e potenti'* to be ste'&y compoun&ers 'n& 're 'ttempting to
mo7e up1'r&s3 to turn 7ergreen. #)ey r'n( ' s)'&e be*o1 t)e 7ergreen
comp'nies3 on*y bec'use t)eir potenti'* in t)e fi7e to ten ye'rs0 time is sti** not 7ery
c*e'r3 '*t)oug) t)ey mig)t gro1 't r'tes f'ster t)'n t)'t of t)e 7ergreen stoc(s in t)e
ne<t ye'r or t1o. #)ey cou*& gro1 't +69/,K per 'nnum o7er t)e ne<t t1o to t)ree
ye'rs.
EMERGING STAR
#)ese 're typic'**y young comp'nies3 often in nic)e businesses3 t)'t )'7e t)e potenti'* to
gro1 'n& &omin'te t)eir nic)es. 7en better3 t)ey mig)t turn out to be re'* gi'nts3 if
t)eir nic)es e<p*o&e into fu**9b*o1n m'r(ets in t)eir o1n rig)ts. #)ese stoc(s 're
potenti'* ten9b'ggers but you nee& to be p'tient.
UGLY DUCKLING
#)ese 're comp'nies t)'t 're tr'&ing be*o1 t)eir f'ir 7'*ue or 't 7'*ues3 1)ic) 're 't '
signific'nt &iscount to t)'t of t)eir peer group3 &ue to ' combin'tion of circumst'nces.
-ut t)ings 're no1 st'rting to )'ppen in t)ese comp'nies or in t)eir m'r(ets t)'t 're
*i(e*y to c'use ' re9e7'*u'tion of t)eir prospects. #)ese stoc(s cou*& &oub*e in t1o to
t)ree ye'rs0 time.
VULTUREFS PICK
#)ese 're comp'nies 1it) 7'*u'b*e 'ssets or br'n&s t)'t )'7e been tr's)e& to ri&icu*ous*y
*o1 prices. -uy ' Pu*ture0s Cic( 'n& 1'it for ' pre&'tor 1)o fin&s its 'ssets un&er7'*ue&
to come '*ong. #)is cou*& be ' *ong 1'it but t)e returns cou*& be st'rt*ing*y )ig).
CANNONBALL
Se'son0s f'7oritesY #ypic'**y t)ey 're f'st g'iners in ' rising m'r(et3 1)ic) cou*& gi7e
returns of +,95,K 1it)in t)ree mont)s. #)ese 're b'se& on ' combin'tion of soun&
m'r(et inform'tion3 tec)nic'* c)'rts 'n& '7'i*'b*e fun&'ment'*s for in7estors3 1)ic) 're
)'7ing 'n 'ppetite for )ig) ris( 'n& )ig) re1'r&.
GIDC RAJJU SHROFF ROF! I"S#I#U# OF /5%A"AG %A"# SUDIS
/5

P572&*a%&)n+ )8 Sharekhan
S)'re()'n@s P'*ue*ine
Deri7'ti7es Digest
'g*e ye
Hig) "oon
In7estor@s ye
Commo&ities -u44
Commo&ities -e't
Commo&ity #r'&er@s Corner
S)'re()'n Fc*usi7e
/6

PRODUCTS OF THE SHAREKHAN COMPANY
O%her Ser'&*e+:
$. Di'*9n9#r'&e
+. Depository Ser7ices
/. Commo&ity #r'&ing
5. Deri7'ti7e #r'&ing
6. %utu'* fun&
8. Cortfo*io %'n'gement Ser7ices
=. On*ine ICO
.. Rese'rc) -'se& Inform'tion Cro7i&e&
Off*ine
S)'reB)'n@s pro&uct
On*ine
C*'ssic AAC
Spee& #r'&e AAC
Ot)er Ser7ices
/8

OFFLINE
Off*ine AAc is t)e AAc for t)e in7estors 1)o 're
not f'mi*i'r 1it) t)e use of computer.
#)e AAC opening c)'rges Rs.6,,(One time)
For $
st
Se'r Dem't AAC is Free3On +
n&
Se'r
A%C c)'rge is 'pp*ic'b*e.
ONLINE
AAC Opening C)'rges Rs.=6, (onetime C)'rge).
For $
st
Se'r Dem't AAC is Free3 On +
n&
Se'r A%C c)'rge is 'pp*ic'b*e.
#ype 1it) = b'n(s t)roug) 1)ic) one c'n tr'nsfer or 1it)&r'1 )is fun& on*ine.
:)ic) 're 's fo**o1s
$. HDFC -'n(
+. ID-I -'n(
/. U#I -'n(
5. O-C -'n(
6. CI#S -'n(
8. In&usin& -'n(
=. Union -'n( of In&i'
Any one 1)o )'7e AAC eit)er of 'bo7e b'n(s t)ey c'n use t)is f'ci*ity. Ot)er1ise one )'s
to m'(e fun& tr'nsfer or 1it)&r'1 by c)e?ue.
#)is 'ccount en'b*es you to buy 'n& se** s)'res t)roug) our 1ebsite. Sou get fe'tures *i(e

Stre'ming ?uotes (using t)e 'pp*et b'se& system).
%u*tip*e 1'tc) *ists.
Integr'te& -'n(ing3 &em't 'n& &igit'* contr'cts.
GIDC RAJJU SHROFF ROF! I"S#I#U# OF /=%A"AG %A"# SUDIS
/=

Inst'nt cre&it 'n& tr'nsfer.
Re'*9time portfo*io tr'c(ing 1it) price '*ert 'n&3 of course3 t)e 'ssur'nce of
secure tr'ns'ctions.
Features of Classic Account
#)'t en'b*es you to in7est effort*ess*y
On*ine tr'&ing 'ccount for in7esting in ?uities 'n& Deri7'ti7es 7i'
s)'re()'n.com
Integr'tion ofJ On*ine tr'&ing [ -'n( [ Dem't 'ccount
Inst'nt c's) tr'nsfer f'ci*ity 'g'inst purc)'se E s'*e of s)'res
%'(e ICO boo(ing
Sou get Inst'nt or&er 'n& tr'&e confirm'tions by e9m'i*
Stre'ming \uotes
Cerson'*i4e& %'r(et Sc'n 1it) your o1n customi4e& stoc( tic(erY
Sing*e screen interf'ce for c's) 'n& &eri7'ti7es
Sour 7ery o1n Cortfo*io #r'c(erY
GIDC RAJJU SHROFF ROF! I"S#I#U# OF /.%A"AG %A"# SUDIS
/.

AAC Opening C)'rges Rs.$,,,A9(onetime C)'rge).
%ont)*y c)'rges Rs.6,,A9(-ut if C*ient gi7e -ro(er'ge of Rs.$6,,A9in ' \u'rter3
t)en Rs.$6,,A9t)'t 1's c)'rge& of ' \u'rter 1i** be Reimburse&).
For $
st
Se'r Dem't AAC is Free3 On +
n&
Se'r A%C c)'rge is 'pp*ic'b*e.
#ype 1it) = b'n(s t)roug) 1)ic) one c'n tr'nsfer or 1it)&r'1 )is fun& on*ine.
:)ic) 're 's fo**o1s
HDFC -'n(
ID-I -'n(
U#I -'n(
O-C -'n(
CI#S -'n(
In&usin& -'n(
Union -'n( of In&i'
Any one 1)o )'7e AAC eit)er of 'bo7e b'n(s t)ey c'n use t)is f'ci*ity. Ot)er1ise
one )'s to m'(e fun& tr'nsfer or 1it)&r'1 by c)e?ue.
Fea%5re+ )8 S0ee( Tra(e
Inst'nt or&er <ecution E Confirm'tion
Sing*e screen tr'&ing termin'*
Re'*9time stre'ming ?uotes3 tic9by9tic c)'rts
%'r(et summ'ry (most tr'&e& scrip3 )ig)est 7'*ue 'n& *ots of ot)er re*e7'nt
st'tistics)
/2

Hot (eys simi*'r to ' bro(ers termin'*
A*erts 'n& remin&ers
-'c(9up f'ci*ity to p*'ce tr'&es on Direct C)one *ines
Sing*e screen interf'ce for c's) 'n& &eri7'ti7es
Char9e+ )8 D&88eren% *)30an&e+ 8)r )n2&ne AGC
Para3e%er+ O0en&n9 Fee Br)kera9e In%er8a*e
#r'&ing
AAC
Dem'te
AAc
De*i7ery S?u're
Off
-'n( Associ'te&
Sharekhan =6, "I! ,.6, ,.$, HDFC3U#I3O-C3
ID-I3 City -'n(
ICICI D&re*% =6, "I! ,.=6 ,.$. ICICI -'n(
In(&aB522+ =6, +6, ,.5, ,.$,
@ Pa&+a +6, "I! ,.+, ,.,6 ICICI -'n(
3U#I3O-C3HDFC3
City -'n(
K)%ak S%ree% 6,, ,.62 ,.,8 Bot'( -'n(3 City
-'n(
HDFC Se*5r&%&e+ =,, "I! ,.6, ,.$6 HDFC E Ot)er
-'n(
GIDC RAJJU SHROFF ROF! I"S#I#U# OF 5,%A"AG %A"# SUDIS
5,

OTHER SERVICES
<.DIAL;N;TRADE
Free 1it) your S)'re()'n C*'ssic Account3 t)e Di'*9n9#r'&e ser7ice en'b*es you
to p*'ce or&ers for buying 'n& se**ing s)'res t)roug) your te*ep)one.
A** you )'7e to &o is &i'* 'ny one of our t1o &e&ic'te& numbers ($9.,,9++9=,6, or
/,/,=8,,# enter your #CI" number (1)ic) is pro7i&e& 't t)e time of opening your
'ccount) 'n& on 'ut)entic'tion you0** be &irecte& to ' te*e bro(er 1)o 1i** buy 'n& se**
s)'res for you.
Fea%5re+ )8 D&a2;n;Tra(e
#)'t en'b*es you to tr'&e effort*ess*y
#:O &e&ic'te& numbers for p*'cing your or&ers 1it) your ce** p)one or
*'n&*ine. #o** free numberJ $9.,,9++9=,6,. For peop*e 1it) &ifficu*ty in
'ccessing t)e to**9free number3 1e '*so )'7e ' Re*i'nce number >,/,=8,,3
1)ic) is c)'rge& 't Rs. $.6, per minute for S#D c'**s.
Autom'tic fun&s tr'nsfer 1it) p)one b'n(ing (for Citib'n( 'n& HDFC b'n(
customers)
Simp*e 'n& Secure Inter'cti7e Poice Response b'se& system for 'ut)entic'tion
GIDC RAJJU SHROFF ROF! I"S#I#U# OF 5$%A"AG %A"# SUDIS
5$

"o 1'iting time. nter your CI" to be tr'nsferre& to our te*ebro(ers
Sou '*so get t)e truste&3 profession'* '&7ice of our te*ebro(ers
After )ours or&er p*'cement f'ci*ity bet1een ..,, 'm 'n& 2./, 'm (timings to
be e<ten&e& soon)
Re*i'b*e ser7ice3 1)ere7er you 're
=.PORTFOLIO MANAGEMENT SYSTEM
S)'re()'n fo**o1 ' mu*ti9&iscip*ine& 'ppro'c) incorpor'ting ?u'ntit'ti7e 'n'*ysis3
fun&'ment'* 'n'*ysis 'n& tec)nic'* 'n'*ysis. #)is mu*ti9pronge& 'ppro'c) en'b*es us to
pro7i&e ris(9contro**e& returns for you.
Rig)t from c)oosing t)e combin'tion of stoc(s most suit'b*e for you b'se& on your ris(
'ppetite to monitoring t)eir mo7ements 'n& &iscussing t)em 1it) you 't speci'* e7ents.
>.MUTUAL FUND
7erybo&y t'*(s 'bout mutu'* fun&s3 but 1)'t e<'ct*y 're t)eyT Are t)ey *i(e s)'res in '
comp'ny3 or 're t)ey *i(e bon&s 'n& fi<e& &epositsT :i** I *ose '** my money in fun&s or
GIDC RAJJU SHROFF ROF! I"S#I#U# OF 5+%A"AG %A"# SUDIS
5+

1i** I become 'n o7ernig)t mi**ion'ireT -ig ?uestions t)'t get 'ns1ere& in Dust fi7e
minutes.
A mutu'* fun& is ' poo* of money t)'t is in7este& 'ccor&ing to ' common in7estment
obDecti7e by 'n 'sset m'n'gement comp'ny (A%C). #)e A%C offers to in7est t)e money
of )un&re&s of in7estors 'ccor&ing to ' cert'in obDecti7e 9 to (eep money *i?ui& or gi7e '
regu*'r income or gro1 t)e money *ong term. In7estors buy ' sc)eme if it fits in 1it)
t)eir in7estment go'*s3 *i(e getting ' regu*'r income no1 or *etting t)e money 'ccumu*'te
o7er t)e *ong term. In7estors p'y ' sm'** fr'ction of t)eir tot'* fun&s to t)e A%C e'c)
ye'r 's in7estment m'n'gement fees.
?.SHAREKHAN DP SERVICE
Dem'teri'*i4'tion 'n& tr'&ing in t)e &em't mo&e is t)e s'fer 'n& f'ster '*tern'ti7e to t)e
p)ysic'* e<istence of securities. Dem't 's ' p'r'**e* so*ution offers free&om from &e*'ys3
t)efts3 forgeries3 sett*ement ris(s 'n& p'per 1or(. #)is system 1or(s t)roug) &epository
p'rticip'nts (DCs) 1)o offer &em't ser7ices 'n& )o*& t)e securities in t)e e*ectronic form
for t)e in7estor S)'re()'n Depository ser7ices offers &em'teri'*i4'tion ser7ices to
in&i7i&u'* 'n& corpor'te in7estors. :e )'7e ' te'm of profession'*s 'n& t)e *'test
tec)no*ogic'* e<pertise &e&ic'te& e<c*usi7e*y to our &em't &ep'rtment3 'p'rt from '
n'tion'* net1or( of fr'nc)isee3 m'(ing our ser7ices ?uic(3 con7enient 'n& efficient. At
S)'re()'n3 our commitment is to pro7i&e ' comp*ete &em't so*ution 1)ic) is simp*e3 s'fe
'n& secure.
6.RSARCH -ASD ADPIC
7ery in7estor@s nee&s 'n& go'*s 're &ifferent. #o meet t)ese nee&s3 S)'re()'n pro7i&es '
*)30rehen+&'e +e% )8 re+ear*h re0)r%+ so t)'t one c'n t'(e t)e rig)t in7estment
&ecisions reg'r&*ess of t)eir in7esting preferencesY #)e Rese'rc) 'n& De7e*opment 't
S)'re()'n is &one 't its He'& office %umb'i.
#)e RED &ep'rtment He'& %r. Hem'ng J'ni for1'r&s '** t)e &et'i*s reg'r&ing '** stoc(s
'n& scripts to '** t)e br'nc)es t)roug) Internet. At t)e en& of e'c) tr'&ing &'y t)ere is '
#e*econference3 t)roug) 1)ic) t)e RED &ep'rtment He'& %R. Hem'ng J'ni t'*(s 1it)
e'c) -r'nc) )e'&s 'n& &iscusses 'bout e'c) &'y@s c*osing position 'n& s)o1s t)eir
pre&ictions 'bout ne<t &'y@s opening position. #)e ?u'rries reg'r&ing stoc( positions 'n&
ot)er re*e7'nt m'tter of t)e br'nc) )e'&s of e'c) br'nc) is being so*7e& t)roug)
te*econference.
#)e 7'rious pub*ic'tions of S)'re()'n 7i4. Deri7'ti7es Digest3 S)'re()'n@s P'*ue*ine3
'g*e eye3 Hig) "oon3 In7estor@s ye3 Commo&ities -u443 Commo&ities -e't3
GIDC RAJJU SHROFF ROF! I"S#I#U# OF 5/%A"AG %A"# SUDIS
5/

Commo&ity #r'&er@s corner3 S)'re()'n Fc*usi7e3 etc. 're being prep're& by t)e rese'rc)
te'm of S)'re()'n m'&e up of )ig)*y e<perience& peop*e from &i7erse fie*&. #)ese '**
pub*ic'tion pro7i&esJ
In9&ept) 'n'*ysis of t)e m'r(ets
An'*ysis -efore3 During (*i7e m'r(et up&'tes) 'n& After m'r(et
timings
Speci'* sector tr'c(ing reports sent regu*'r*y
A.ONLINE IPO
On*ine ICO (Initi'* Cub*ic Offering) is ' ne1 ser7ice st'rte& by S)'re()'n for pro7i&ing
t)e 'pp*ic'tion form of 'ny comp'ny@s issues of s)'res Dust *i(e t)e #CS issue c'n be
subscribe& by fi**ing 'n on*ine form to re&uce t)e p'per 1or( 'n& t)e fun& tr'nsfer
f'ci*ity is '*so pro7i&e& to t)e c*ients for tr'nsferring t)e fun&s on*ine. It is gi7en on its
1eb9site for )e*ping t)e c*ients 1)o 're not 'b*e to co**ect t)e forms m'nu'**y 'n& t)e
spee& of fi**ing 'n& re&ucing t)e ris( of misp*'cing of forms3 not re'c)ing in time3 etc.
B.COMMODITY
Org'ni4e& futures m'r(et e7o*7e& in
In&i' by t)e setting up of >-omb'y Cotton
#r'&e Associ'tion !t&.> in $.=6. In $.2/3
fo**o1ing 1i&espre'& &iscontent 'mongst
*e'&ing cotton mi** o1ners 'n&
merc)'nts o7er t)e functioning of t)e
-omb'y Cotton #r'&e Associ'tion3 '
sep'r'te 'ssoci'tion by t)e n'me >-omb'y
Cotton <c)'nge !t&.> 1's constitute&.
Futures tr'&ing in oi*see&s 1's org'ni4e&
in In&i' for t)e first time 1it) t)e setting up
of GuD'r'ti Py'p'ri %'n&'*i in $2,,3 1)ic) c'rrie& on futures tr'&ing in groun&nut 3
c'stor see& 'n& cotton. -efore t)e Secon& :or*& :'r bro(e out in $2/2 se7er'* futures
m'r(ets in oi*see&s 1ere functioning in GuD'r't 'n& CunD'b.
#)ere 1ere booming 'cti7ities in t)is m'r(et 'n& 't one time 's m'ny 's $$, e<c)'nges
1ere con&ucting for1'r& tr'&e in 7'rious commo&ities in t)e country. #)e securities
55

m'r(et 1's ' poor cousin of t)is m'r(et 's t)ere 1ere not m'ny p'pers to be tr'&e& 't t)'t
time.
#)e er' of 1i&espre'& s)ort'ges in m'ny essenti'* commo&ities resu*ting in inf*'tion'ry
pressures 'n& t)e ti*t to1'r&s soci'*ist po*icy3 in 1)ic) t)e ro*e of m'r(et forces for
resource '**oc'tion got &iminis)e&3 s'1 t)e &ec*ine of t)is m'r(et since t)e mi&9$28,s.
#)is coup*e& 1it) t)e regu*'tory constr'ints in $28,s3 resu*te& in 7irtu'* &ism'nt*ing of
t)e commo&ities future m'r(ets. It is on*y in t)e *'st &ec'&e t)'t commo&ity future
e<c)'nges )'7e been 'cti7e*y encour'ge&. Ho1e7er3 t)e m'r(ets )'7e been t)in 1it)
poor *i?ui&ity 'n& )'7e not gro1n to 'ny signific'nt *e7e*.
A t)ree9pronge& 'ppro'c) )'s been '&opte& to re7i7e 'n& re7it'*i4e t)e m'r(et. First*y3 on
po*icy front m'ny *eg'* 'n& '&ministr'ti7e )ur&*es in t)e functioning of t)e m'r(et )'7e
been remo7e&. For1'r& tr'&ing 1's permitte& in cotton 'n& Dute goo&s in $22.3 fo**o1e&
by some oi*see&s 'n& t)eir &eri7'ti7es3 suc) 's groun&nut3 must'r& see&3 ses'me3
cottonsee& etc. in $222. A st'tement in t)e first e7er "'tion'* Agricu*ture Co*icy3 issue& in
Ju*y3 +,,, by t)e go7ernment t)'t futures tr'&ing 1i** be encour'ge& in incre'sing
number of 'gricu*tur'* commo&ities 1's in&ic'ti7e of 1e*come c)'nge in t)e go7ernment
po*icy to1'r&s for1'r& tr'&ing.
Secon&*y3 strengt)ening of infr'structure 'n& institution'* c'p'bi*ities of t)e regu*'tor 'n&
t)e e<isting e<c)'nges recei7e& priority. #)ir&*y3 's t)e e<isting e<c)'nges 're s*o1 to
'&opt reforms &ue to *eg'cy or *'c( of resources3 ne1 promoters 1it) resources 'n&
profession'* 'ppro'c) 1ere being 'ttr'cte& 1it) ' c*e'r m'n&'te to set up &emutu'*i4e&3
tec)no*ogy &ri7en e<c)'nges 1it) n'tion1i&e re'c) 'n& '&opting best intern'tion'*
pr'ctices.
#)e ye'r +,,/ m'r(e& t)e re'* turning point in t)e po*icy fr'me1or( for commo&ity
m'r(et 1)en t)e go7ernment issue& notific'tions for 1it)&r'1ing '** pro)ibitions 'n&
opening up for1'r& tr'&ing in '** t)e commo&ities. #)is perio& '*so 1itnesse& ot)er
reforms3 suc) 's3 'men&ments to t)e ssenti'* Commo&ities Act3 Securities (Contr'ct)
Ru*es3 1)ic) )'7e re&uce& bott*enec(s in t)e &e7e*opment 'n& gro1t) of commo&ity
m'r(ets. Of t)e country0s tot'* GDC3 commo&ities re*'te& ('n& &epen&ent) in&ustries
constitute 'bout roug)*y 6,98, K3 1)ic) itse*f c'nnot be ignore&.
%ost of t)e e<isting In&i'n commo&ity e<c)'nges 're sing*e commo&ity p*'tforms; 're
region'* in n'ture3 run m'in*y by entities 1)ic) tr'&e on t)em resu*ting in subst'nti'*
conf*ict of interests3 op'?ue in t)eir functioning 'n& )'7e not use& tec)no*ogy to sc'*e up
t)eir oper'tions 'n& re'c) to bring &o1n t)eir costs. -ut 1it) t)e strong emergence ofJ
"'tion'* %u*ti9commo&ity <c)'nge !t&.3 A)me&'b'& ("%C)3 %u*ti Commo&ity
<c)'nge !t&.3 %umb'i (%CF)3 "'tion'* Commo&ities 'n& Deri7'ti7es <c)'nge3
%umb'i ("CDF)3 'n& "'tion'* -o'r& of #r'&e3 In&ore ("-O#)3 '** t)ese s)ortcomings
1i** be '&&resse& r'pi&*y. #)ese e<c)'nges 're e<pecte& to be ro*e mo&e* to ot)er
e<c)'nges 'n& 're *i(e*y to compete for tr'&e not on*y 'mong t)emse*7es but '*so 1it)
t)e e<isting e<c)'nges.
56

#)e current min&set of t)e peop*e in In&i' is t)'t t)e Commo&ity e<c)'nges 're
specu*'ti7e (&ue to non &e*i7ery) 'n& 're not me'nt for 'ctu'* users. One m'Dor re'son
being t)'t t)e '1'reness is *'c(ing 'mongst 'ctu'* users. In In&i'3 Interest r'te ris(s3
e<c)'nge r'te ris(s 're 'cti7e*y m'n'ge&3 but t)e s'me &oes not )o*& true for t)e
commo&ity ris(s. Some '&&ition'* impe&iments 're centere& 'roun& t)e s'fety3
tr'nsp'rency 'n& t'<'tion issues.
C.DERIVATIVE
#)e emergence of t)e m'r(et for &eri7'ti7e pro&ucts3 most not'b*y for1'r&s3
futures 'n& options3 c'n be tr'ce& b'c( to t)e 1i**ingness of ris(9'7erse economic 'gents
to gu'r& t)emse*7es 'g'inst uncert'inties 'rising out of f*uctu'tions in 'sset prices. -y
t)eir 7ery n'ture3 t)e fin'nci'* m'r(ets 're m'r(e& by ' 7ery )ig) &egree of 7o*'ti*ity.
#)roug) t)e use of &eri7'ti7e pro&ucts3 it is possib*e to p'rti'**y or fu**y tr'nsfer price
ris(s by *oc(ing9in 'sset prices. As instruments of ris( m'n'gement3 t)ese gener'**y &o
not inf*uence t)e f*uctu'tions in t)e un&er*ying 'sset prices. Ho1e7er3 by *oc(ing9in
'sset prices3 &eri7'ti7e pro&ucts minimi4e t)e imp'ct of f*uctu'tions in 'sset prices on t)e
profit'bi*ity 'n& c's) f*o1 situ'tion of ris(9'7erse in7estors.
58

Or9an&Ha%&)n *har%
Hea( )88&*e
Bran*h hea(
A++&+%an% 3ana9er
Ba*k )88&*e Marke%&n9 O88&*er
A**)5n% (e0ar%3en% DP
GIDC RAJJU SHROFF ROF! I"S#I#U# OF 5=%A"AG %A"# SUDIS
5=

MARKETING DEPARTMENT
#)e m'in 'im of m'r(eting 'cti7ities 't S)'re()'n is t)'t t)e customer s)ou*& get
enoug) gui&'nce to Doin t)e comp'ny 'n& )o1 )e c'n get t)e best ser7ice t)'n 'ny
ot)er stoc(bro(er. #)ere is 'n officer for )'n&*ing t)e m'r(eting 'cti7ities fo**o1e& by
t1o e<ecuti7es 'n& it is not *imite& to t)em but t)e ot)er peop*e 're '*so )'7ing some
responsibi*ities to incre'se t)e no. of c*ients 'n& ret'in t)em by pro7i&ing t)em t)e
ser7ices nee&e& by t)em.
#)ere 're m'ny ser7ices t)ose 're &esigne& suc) t)'t t)e specific t'rget segments
of t)e customers 're co7ere& 'n& t)e pro&ucts 're positione& in t)e min&s of customers
's t)e best one in In&i'. #)e ser7ices 're 's gi7en be*o1J
S)'re()'n is In&i'0s *e'&ing n'tion'* net1or( of stoc(9bro(ing out*ets. It is )'7ing t)e
*'rgest ret'i* &istribution c)'in in In&i'. S)'re()'n is not on*y ' s)'re9bro(ing firm3 but it
'7'i*s of 7'rious ser7ices 'n& ot)er fin'nci'* pro&ucts to its c*ients.
$. Off*ine #r'&ing f'ci*ity
+. On*ine -S 'n& "S e<ecutions (t)roug) -O!#3 i.e. -S On*ine #r'&ing 'n&
"A#3 i.e. "'tion'* <c)'nge Autom'te& #r'&ing)
/. Free 'ccess to in7estment '&7ice from S)'re()'n0s Rese'rc) te'm.
5. Depository ser7icesJ Dem't 'n& Rem't tr'ns'ctions (S)'re()'n is registere& 1it)
"SD!3 i.e. "'tion'* Securities Depository !t&.3 's ' Depository C'rticip'nt)
6. Deri7'ti7es tr'&ing3 i.e. Futures 'n& Options (t)roug) "A# FEO)
8. Internet b'se& on*ine tr'&ing.
=. Ot)er in7estment pro&uctsJ %utu'* Fun&s3 R-I -on&s3 Insur'nce3 etc.
GIDC RAJJU SHROFF ROF! I"S#I#U# OF 5.%A"AG %A"# SUDIS
5.

On2&ne BSE an( NSE Tra(&n9
S)'re()'n is ' registere& Stoc( -ro(er 1it) t)e -omb'y Stoc( <c)'nge 'n& "'tion'* Stoc(
<c)'nge to tr'&e on be)'*f of c*ients. #)e screen9b'se& tr'&ing is &one on -O!#9-S On*ine
#r'&ing 'n& "A#9 "'tion'* <c)'nge Autom'te& #r'&ing3 termin'*s. #)ere 're t1o types of
tr'ns'ctions e<ecute& on t)ese termin'*s 7i4. intr'9&'y 'n& &e*i7ery b'se& tr'ns'ctions.
Intr'&'y tr'ns'ctions 're t)ose3 in 1)ic) t)e s?u'ring up of &e'* is &one on t)e s'me &'y3
1)i*e in &e*i7ery b'se& tr'ns'ction t)e s?u'ring up is not &one on t)e s'me &'y3 but t)e stoc(
is to be tr'&e& on t)e b'sis of ro**ing sett*ement i.e. #[+. #)e -ro(er'ge of Intr'&'y
tr'ns'ction is ,.$,K sing*e si&e3 1)i*e bro(er'ge on &e*i7ery b'se& tr'ns'ctions is ,.6,K on
bot) si&e3 i.e. 1)i*e purc)'sing 's 1e** 's se**ing.
Free A**e++ %) In'e+%3en% A('&*e %hr)59h RDD
#)e Rese'rc) 'n& De7e*opment 't S)'re()'n is &one 't its He'& office %umb'i. From t)ere
it for1'r&s t)e re*e7'nt &'t' 'n& tips on p'rticu*'r s)'res 'n& scripts 't t)e re*e7'nt time. #)e
RED &ep'rtment He'& %r. Hem'ng J'ni for1'r&s '** t)e &et'i*s reg'r&ing '** stoc(s 'n&
scripts to '** t)e br'nc)es t)roug) Internet. At t)e en& of e'c) tr'&ing &'y t)ere is '
#e*econference3 t)roug) 1)ic) t)e RED &ep'rtment He'& %R. Hem'ng J'ni t'*(s 1it) e'c)
-r'nc) )e'&s 'n& &iscusses 'bout e'c) &'y0s c*osing position 'n& s)o1s t)eir pre&ictions
'bout ne<t &'y0s opening position. #)e ?u'rries reg'r&ing stoc( positions 'n& ot)er
re*e7'nt m'tter of t)e br'nc) )e'&s of e'c) br'nc) is being so*7e& t)roug) te*econference.
#)e 7'rious pub*ic'tions of S)'re()'n 7i4. Deri7'ti7es Digest3 S)'re()'n0s P'*ue*ine3 'g*e
eye3 Hig) "oon3 In7estor0s ye3 Commo&ities -u443 Commo&ities -e't3 Commo&ity
#r'&er0s corner3 S)'re()'n Fc*usi7e3 etc. 're being prep're& by t)e rese'rc) te'm of
S)'re()'n m'&e up of )ig)*y e<perience& peop*e from &i7erse fie*&.
52

S)'re()'n is ' registere& Depository C'rticip'nt (DC) 1it) "'tion'* Securities
Depository !t&. ("SD!). #)e p'rticip'nts 're re?uire& to enter into 'n 'greement 1it)
benefici'* o1ners. It is re?uire& t)'t sep'r'te 'ccounts s)'** be opene& by e7ery
p'rticip'nt in t)e n'me of e'c) of t)e benefici'* o1ner 'n& t)e securities of e'c)
benefici'* o1ner s)'** be segreg'te& 'n& s)'** not be mi<e& up 1it) t)e securities of ot)er
benefici'* o1ners or 1it) t)e p'rticip'nt0s o1n securities. #)e p'rticip'nts 're ob*ige& to
reconci*e t)e recor&s 1it) e7ery &epository on ' &'i*y b'sis. C'rticip'nts 're re?uire& to
m'int'in t)e fo**o1ing recor&s for ' perio& of fi7e ye'rs.
Recor&s of '** t)e tr'ns'ctions entere& into 1it) ' &epository 'n& 1it) ' benefici'*
o1ner;
Det'i*s of security &em'teri'*i4e&3 rem'teri'*i4e& on be)'*f of benefici'* o1ners
1it) 1)om it )'s entere& into 'n 'greement;
Recor&s of instructions recei7e& from benefici'* o1ners 'n& st'tements of
'ccount pro7i&e& to benefici'* o1ners; 'n&
Recor& of 'ppro7'*3 notice3 entry 'n& c'nce**'tion of p*e&ge or )ypot)ec'tion 's t)e
c'se m'y be.
De0)+&%)r1 Par%&*&0a%&)n
6,

Der&'a%&'e+ Tra(&n9
S)'re()'n is ' #r'&ing %ember registere& 1it) t)e Stoc( <c)'nge3 'ccor&ing to
t)e norms 'n& Gui&e*ines gi7en by t)e S-I. #1o types of users 'ccess t)e "A# FEO
tr'&ing system. #)e #r'&ing %embers 'n& t)e C*e'ring %embers. #)e #r'&ing %embers
(#%) )'s 'ccess to functions suc) 's3 or&er m'tc)ing3 or&er 'n& tr'&e m'n'gement. #)e
C*e'ring %ember (C%) uses t)e tr'&er 1or(st'tion for t)e purpose of monitoring t)e
tr'&ing member(s) for 1)om )e c*e'rs t)e tr'&es. A&&ition'**y3 )e c'n enter 'n& set *imits
to position3 1)ic) ' tr'&ing member c'n t'(e. S)'re()'n pro7i&es t)e ser7ice of
&eri7'ti7es tr'&ing on "A# FEO to its c*ients.
C)33)(&%&e+ Tra(&n9
S)'re()'n is pro7i&ing t)e f'ci*ity to tr'&e 1it) t)e commo&ities t)roug) %CF
(%u*ti9Commo&ity <c)'nge) 'n& "CDF ("'tion'* Commo&ities E Deri7'ti7es
<c)'nge). #)e commo&ities m'r(et in In&i' is 'n emerging m'r(et3 1)ic) 1i** become
t)e *'rgest m'r(et in t)e 1or*& 1it)in t)e ne<t 6 ye'rs3 's t)e tren&s in t)e commo&ities
m'r(et s)o1s its perform'nce. #)e comp'ny '*so pro7i&es rese'rc) reports on &'i*y3
1ee(*y 'n& mont)*y b'sis for t)e in7estors in t)e commo&ities. It is Dust *i(e t)e futures
'n& is )'7ing ' fi<e& *ot of goo&s 1it) t)e m'rgin for e'c) commo&ity 'n& t)e tr'&ing is
b'se& on t)e t)eory of futures 'n& t)erefore3 it is '*so c'**e& P'y&' %'r(et. In s)ort
S)'re()'n '*so pro7i&es bro(ering in commo&ities 'n& t)e bro(er'ge c)'rges 're ,.$,K
on tot'* tr'&e 7'*ue 'n& if c'rry for1'r&e& 'n '&&ition'* ,.,+K c)'rge on tot'* tr'&e.
On2&ne IPO
On*ine ICO (Initi'* Cub*ic Offering) is ' ne1 ser7ice st'rte& by S)'re()'n for
pro7i&ing t)e 'pp*ic'tion form of 'ny comp'ny0s issues of s)'res Dust *i(e t)e #CS issue
c'n be subscribe& by fi**ing 'n on*ine form to re&uce t)e p'per 1or( 'n& t)e fun&
tr'nsfer f'ci*ity is '*so pro7i&e& to t)e c*ients for tr'nsferring t)e fun&s on*ine. It is gi7en
on its 1eb9site for )e*ping t)e c*ients 1)o 're not 'b*e to co**ect t)e forms m'nu'**y 'n&
t)e spee& of fi**ing 'n& re&ucing t)e ris( of misp*'cing of forms3 not re'c)ing in time3
etc.
6$

I n%erne% Ba+e( On2&ne Tra(&n9
#)e On*ine tr'&ing f'ci*ities pro7i&e& by S)'re()'n is b'sic'**y &i7i&e& into t1o types
of 'ccounts3 7i4. C*'ssic Account 'n& Spee& tr'&e 'n& spee&tr'&ep*us
$. C2a++&* A**)5n%: #)is 'ccount '**o1s t)e c*ient to tr'&e t)roug) t)e 1ebsite
'n& is suit'b*e for t)e ret'i* in7estor. #)e on*ine tr'&ing t)roug) S)'re()'n
1ebsite '*so comes 1it) Di'*9n9#r'&e ser7ice t)'t en'b*es you to buy 'n& se**
s)'res by c'**ing our &e&ic'te& to**9free number.
+. S0ee(%ra(e an( S0ee(%ra(e P25+: SCD#RAD is ' ne<t9gener'tion
on*ine tr'&ing pro&uct t)'t brings t)e po1er of t)e bro(er0s termin'* to t)e
c*ient0s CC. #)roug) SCD#RAD C!US t)e c*ient is '*so '**o1e& to tr'&e on
Deri7'ti7es.
>. S%rea3er :
Stre'mer 'ccount is Dust for t)e ne1 *e'rners of m'r(et 'n& is ' ne1
ser7ice offere& by S)'re()'n to gi7e t)e 7ie1 of t)e m'r(et on*ine to t)e
customers 1)o &on0t )'7e 'ny e<periences of t)e stoc( m'r(et 'n& it is ' soft1're
pro7i&e& to see t)e ups 'n& &o1ns of m'r(et 1it) t)e screen on your CC. It costs
Rs.+,,, per ?u'rter 'n& t)ere 1i** not be 'ny f'ci*ity for tr'&ing 'n& Dust you c'n
see )o1 tr'&ing is &one on t)e m'r(et.
#)e 7'rious benefits t)e c*ient gets from t)e on*ine tr'&ing 'reJ
Free()3 8r)3 Pa0er6)rk: Integr'te& tr'&ing3 b'n( 'n& Dem't
'ccount ('uto p'y9in 'n& p'y9out of securities) 1it) &igit'* contr'cts
remo7es '** p'per1or(.
In+%an% Cre(&% An( Tran+8er: Inst'nt tr'nsfer of fun&s from b'n(
'ccounts of c*ient0s c)oice to )isA)er S)'re()'n tr'&ing 'ccount.
Tra(e An16here: nDoy t)e e'se of tr'&ing from 'ny p'rt of t)e 1or*&
in ' comp*ete*y secure en7ironment.
D&a2 n Tra(e: C'** S)'re()'n on ' to** free number to p*'ce or&ers
t)roug) s)'re()'n0s te*ebro(ers.
T&3e21 A('&*e: %'(e informe& &ecisions 1it) e<pert '&7ice3 in7estment
c'**s 'n& *i7e m'r(et comment'ry.
Rea2;T&3e P)r%8)2&) Tra*k&n9: -enefit from re'*9time inform'tion of
your in7estment 'n& current portfo*io 7'*ue.
6+

C)30ar&+)n )8 On2&ne Tra(&n9 Pr)(5*%+
C)+. G
Fea%5re+
Pr)(5*%+ O88ere(
On2&ne
BSEG
NSE
On2&ne
FDO
On2&ne
IPO
On2&n
e
MF
On2&ne
C)33)(
&%1
AG*
O0en&n
9
Char9e
+
De0)+&%
+
Share khan
Groun& AAc3 9
-ro(ing3 Commo&ity3
DC3 C%S
Ses Ses Ses "o "o
C*'ssic
=6,A9S#
$,,,A9
$,,,,
K)%ak+%ree%
.*)3
Groun& AAc3 On*ine
AAc3 Commo&ity3 DC
Ses Ses Ses Ses "o 6,, 6,,,,
ICICI
D&re*%.*)3
On*ine AAc3 %utu'*
Fun&
Ses Ses "o Ses "o =6, 99999
HDFC
9-ro(ing Ses Ses "o "o "o 8,, 99999
M)%&2a2
O+6a2
Groun& AAc3 On*ine
AAc3 Commo&ity3 DC3
C%S
Ses Ses Ses Ses Ses Upto 5,, 99999
In(&a7522+
Groun& AAc3 On*ine
AAc3 Commo&ity3
DC3%F
Ses Ses Ses "o "o +6, 99999
@;
Pa&+a.*)3
9-ro(ing3 Insur'nce Ses Ses "o "o Ses 6,, 6,,,
An9e2
Br)k&n9
Groun& AAc3 9
-ro(ing
Ses "o Ses "o "o 6,, 6,,,,
ILDFS
Insur'nce3 %F3
9-ro(ing3 Groun&
AAc
Ses Ses Ses Ses Ses 6,, 999999
Ana9ra3
Groun& AAc3 9
-ro(ing3 %utu'*
Fun&
Ses Ses Ses Ses Ses =., $,,,,
6/

SEVEN P/S OF SHAREKHAN
PRODUCT
Pr)(5*% Var&e%1
S)'re ()'n offers / types of on*ine tr'&ing 'ccounts for its customers speci'**y &esigne&
'ccor&ing to t)eir 7o*ume in s)'re tr'&ing. #)ose / 7'rieties 'reJ
C*'ssic9 for ret'i* in7estors
Spee& #r'&eJ for )ig) net 1ort) in7estors 1it) *'rge 'n& 'cti7e e?uity portfo*io
1)o nee& to monitor 'n& 'ction s1ift*y
Spee& tr'&e C*us9 for )ig) net 1ort) in7estors &e'*ing in &eri7'ti7e m'r(et.
I5a2&%1
User Frien&*y3 'ttr'cti7e E co*orfu* :ebsite.
De+&9n
#)e 1ebsite of S)'re ()'n n'me*y 111.s)'re()'n.com )'s been speci'**y &esigne& to
f'ci*it'te its users to buy 'n& se** s)'res in 'n inst'nt 't 'nytime 'n& from 'ny1)ere t)ey
*i(e. #)e site is user frien&*y '**o1ing e7en ' *'ym'n to e'si*y oper'te 1it)out 'ny
)'ss*es.
Fea%5re+:
S)'re ()'n@s pro&uct comes 1it) t)e fo**o1ing fe'turesJ
#r'&e e<ecution in ' fr'ction of ' secon&Y
Sing*e Screen #r'&ing #ermin'*
Re'* time stre'ming ?uotes. Crice 1'tc) on 'ny number of scripts.
Hot (eys simi*'r to -ro(ers #ermin'*.
Customi4e& A*erts b'se& on %u*tip*e C'r'meters.
-'c( up F'ci*ity to p*'ce tr'&es on Direct C)one !ines.
Intr' &'y c)'rts3 up&'te& *i7e3 tic(9by9tic(.
Inst'nt Or&erZ #r'&e Confirm'tion in t)e s'me 1in&o1
65

!i7e m'rgin3 position3 m'r(e& to m'r(et profit E *oss report.
Competiti7e -ro(er'ge.
F*e<ibi*ity to customi4e screen *'yout 'n& setting.
F'ci*ity to customi4e 'ny number of portfo*ios E 1'tc) *ists.
F'ci*ity to c'nce* '** pen&ing or&ers 't one c*ic(.
F'ci*ity to s?u're off '** tr'ns'ctions 't one c*ic(.
#op G'iners3 #op !osers3 'n& %ost Acti7e3 up&'te& *i7e.
In&e< inform'tion; in&e< c)'rt3 in&e< stoc( inform'tion *i7e.
%'r(et &ept)3 i.e. -est 6 bi&s 'n& offers3 up&'te& *i7e for '** scripts
On*ine 'ccess to bot) 'ccounts 'n& DC.
!i7e up&'te& Or&er 'n& #r'&e -oo(.
Det'i*s of pen&ing3 e<ecute& 'n& reDecte& or&ers.
On*ine 'ccess to Customer Ser7ice.
$+. 9 bit super s'fe encryption.
F'ci*ity to p*'ce 'fter m'r(et or&ers
On*ine fun& tr'nsfer f'ci*ity from *e'&ing -'n(s
On*ine intr'9&'y tec)nic'* c'**s.
<)'usti7e &'t'b'se of o7er +,,, comp'nies
Historic'* c)'rts 'n& tec)nic'* 'n'*ysis too*s.
!'st but not t)e *e'st3 i&e's t)'t )e*p you to m'(e moneyYYY
66

Bran( Na3e
#)e comp'ny 's ' 1)o*e in its off*ine business )'s n'me& itse*f 's SSBI Securities C7t.
!t& 9Se7'(*'* Se7'nti*'* B'nti*'* 'n& Is)1'r*'* Securities C7t. !t&. #)e comp'ny )'s
preferre& to n'me t)emse*7es un&er ' -*'n(et F'mi*y "'me.
-ut in its on*ine &i7ision st'rte& since $22=3 t)e comp'ny preferre& to n'me itse*f 's
HSHAR BHA"I. #)e -r'n& "'me HSHAR BHA"I itse*f suggests t)e business in
1)ic)
t)e comp'ny is &e'*ing so t)'t t)e consumer cou*& e'si*y i&entify t)e pro&uct or ser7ice
c'tegory.
Ser'&*e+
S)'re ()'n offers its customers3 &epository ser7ices 'n& tr'&e e<ecution f'ci*ities for
e?uities3 &eri7'ti7es 'n& commo&ities b'c(e& 1it) in7estment '&7ice tempere& by
&ec'&es of bro(ing e<perience. #)e te'ms of its &e&ic'te& 'n'*ysts 're const'nt*y 't 1or(
to tr'c( perform'nce 'n& tren&s.
Di'*9n9tr'&e is '*so 'n e<c*usi7e ser7ice '7'i*'b*e to '** S)'re()'n customers for tr'&ing
in s)'res 7i' t)e te*ep)one. On &i'*ing t)e to** free number $8,,9++9=,6, 'n& on entering
t)e customers #CI" number3 t)e customer 1i** be &irecte& to ' te*ebro(er 1)o 1i** buy or
se** s)'res for )im.
68

PRICE
L&+% Pr&*e
C!ASSIC SCD #RAD Off !ine
One time
Registr'tion fee
=6, $,,, /,,
%inimum bro(er'ge
C)'rges V\u'rter*y
"i* $,,, "i*
Br)kera9e
S)'re ()'n in its on*ine business c)'rges bro(er'ge 's fo**o1sJ
In e?uity %'r(etJ
On #r'&ingJ ,.$K On De*i7eryJ ,.6K
In Deri7'ti7e %'r(et
On #r'&ingJ ,.$+K (#ot'* bro(er'ge) On De*i7eryJ ,.$K
Ser'&*e Ta4
9.K on -ro(er'ge.
T5rn)'er %a4 J S%a30 (5%1
9,.,$6K (Rs. $6 on e7ery turno7er of Rs. $,,,,,)
C5+%)(1 Char9e
Re. $ per script )e*& per mont).
D&+*)5n%+
For in7estors 1it) Hig) "et 1ort)3 t)ere 're s*'bs in bro(er'ge r'tes.
Pa13en% Per&)(
#)e tr'ns'ction sett*ement &'te in t)e securities m'r(et is #[ + &'ys i.e. t)e p'yment of
t)e tr'ns'ction t'(en p*'ce )'s to be m'&e 1it)in t1o &'ys of its occurrence.
Cre(&% %er3+
S)'re ()'n '**o1s its customers to tr'&e up to 5 times i.e. by (eeping $A5t) m'rgin 1it)
t)em.
6=

PROMOTION
On*ine s)'re tr'&ing is tot'**y ' ne1 concept in In&i'n %'r(et. Gener'**y in7estor &oesn@t
*i(e to come out from con7ention'* 1'y of s)'re tr'&ing. S)'re ()'n )'s intro&uce& t)is
pro&uct in. #)e concept 'n& Cro&uct 're sti** ne1 in t)e m'r(et. #)erefore t)e comp'ny
)'s un&ert'(en e<tensi7e promotion c'mp'ign to cre'te '1'reness 'bout t)e pro&uct.
S)'re ()'n '&opts t)e fo**o1ing too*s for promoting t)e pro&uct
A('er%&+&n9
Comp'ny '&7ertises its pro&uct t)roug) #P me&i' on c)'nne*s *i(e C"-C3 Crint %e&i'9
in *e'&ing &'i*ies 'n& out&oors me&i'. It '&7ertises itse*f 's 'n inno7'ti7e -r'n& 1it) '
c'rtoon of tiger9c'**e& SHRU. -esi&es 'ttr'cti7e 'n& co*orfu* broc)ures 's 1e** 's
posters 're use& gi7ing fu** &et'i*s 'bout t)e pro&uct.
%'i*s 're sent to peop*e *ogging on to sites *i(e moneycontro*.com 'n& re&iff.com.
A*so3 st'**s 're opene& up no1 'n& t)en 't p*'ces 1)ere prospecti7e customers c'n be
'ppro'c)e&.
Sa2e+ Pr)3)%&)n
#)e Comp'ny offers Rs.6,, inste'& of Rs.=6, for corpor'te 'ccounts (more t)'n +,
'ccounts).
A*so3 it pro7i&es on*ine tr'&ing 'ccounts for Dust Rs./,, for II% stu&ents.
Sa2e+ F)r*e
#)e Comp'ny )'s 'n 'ggressi7e s'*es force3 1)ic) is gi7en incenti7es3 b'se& on t)eir
s'*es. #)e s'*es force is gi7en intensi7e tr'ining continuous*y.
Se3&nar
#)e Comp'ny '*so 'rr'nges semin'r in corpor'te 1or*& for cre'ting '1'reness 'bout t)e
pro&uct. Recent*y3 it )'& org'ni4e& for ' semin'r in O"GC3 II%.
D&re*% Marke%&n9
Comp'ny emp)'si4es more on &irect m'r(eting3 's m'ny peop*e 're sti** not '1're of t)is
ne1 1'y of sm'rt tr'&ing. For t)is3 t)e comp'ny recruits 'n& tr'ins s'*es represent'ti7es
so 's to e<p*'in t)e pro&uct 'n& so*7e customer ?ueries re*'te& to t)e pro&uct. #)is is t)e
most effecti7e 1'y to communic'te t)e t)ree9in9one concept 1)ic) comp'ny offers.
6.

Te2e3arke%&n9
#)is is 'not)er promotion'* too* comp'ny is using to boost up its s'*es. For t)is3 t)e
comp'ny co**ects t)e &'t'b'se of t)e peop*e be*onging to &ifferent profession'* segments.
De3a%er&a2&Ha%&)n *har9e+
Re. / per certific'te or Rs.$6 per re?uests 1)ic)e7er is )ig)er.
PLACE
Channe2+
S)'re ()'n uses 7'rious c)'nne* '*tern'ti7es to re'c) to its customers t)roug)
Internet
#e*e %'r(eting
Ret'i* S)'re S)ops
Fr'nc)isee O1ners
Co1er -ro(ers
S'*es Force
C)'era9e
Access to t)e 1ebsite from 'ny p'rt of t)e g*obe.
L)*a%&)n+
S)'re ()'n )'s t)e *'rgest c)'in of ret'i* s)'re s)ops in In&i'. It )'s 6.. s)'re s)ops
*oc'te& in +$/ cities. '** o7er In&i' *i(e Cune3 #)'ne3 C)enn'i3 Bo*('t'3 -'ng*ore3
!uc()no13 D'rD*eeng3 B'npur3 -'ro&'3 %i&n'pore3 Sur't3 De*)i3 G'4i'b'&3 Hy&r'b'&3
A**')b'&3 etc.
62

PEOPLE
E302)1ee+
De&ic'te&3 Inte**igent 'n& !oy'* emp*oyee
mp*oyees 're se*ecte& on t)e b'sis of t)eir e<perience 'n& ?u'*ific'tion 's 'pp*ic'b*e to
t)e Dob.
Re+ear*h Tea3
S)'re ()'n )'s ' te'm of &e&ic'te& 'n'*ysts 1)o )'7e ye'rs of 1or(ing e<perience in t)e
in&ustries t)'t t)ey tr'c(3 'n& ' pro7en tr'c( recor& in using t)eir (no1*e&ge of t)e
in7estment science to &e*i7er resu*ts.
C5+%)3er+
#)e )e'rt of s)'re()'n 're re'**y tre'te& *oy'**y *i(e t)e (ings. #)e customer c're3 1)ic)
comprises of )ig)*y tr'ine& e<ecuti7es oper'ting from 2J/, to .J,, p.m.
PHYSICAL EVIDENCE
O88&*e En'&r)n3en%:
#)e 'mbience 1it)in t)e office is 1)'t c'n m'(e t)e customer fee* comfort'b*e in
tr'&ing. #)e cor&i'* 'n& frien&*y 'tmosp)ere 't office is *i(e ' fu** time moti7'tion for t)e
emp*oyees.
In%er&)r+ an( In8ra+%r5*%5re:
In e7ery s)'re()'n br'nc) 1e** furnis)e& 'n& fu**y Aircon&itioner .
#)e office is 1e** furnis)e& 'n& )'s +5 computer termin'*s on 1)ic) tic(9by9tic(
price mo7ements of t)e securities 're &isp*'ye&.
PROCESS
In t)is ser7ice org'ni4'tion3 t)e 1'ys in 1)ic) t)e customers recei7e &e*i7ery of
t)e ser7ice constitutes t)e process. Here3 t)e process in7o*7es '&&ing ]7'*ue@ or
]uti*ity@ so t)'t t)e customers get fu** s'tisf'ction for t)e money spent by t)em.
Here t)e process begins from t)e step 1)en customer 1'nts to open e9in7est
'ccount 'n& en&s 1)en )is 'ccount is 'ctu'**y 'cti7'te&.
A** In&i'n resi&ents 'n& "RI 're e*igib*e to '7'i* t)is ser7ice.
8,

Customers c'n open ' s)'re()'n e9in7est 'ccount by fi**ing ' sing*e 'pp*ic'tion
form.
#)is form inc*u&es 2 'greements *i(e
$. %'in form 1it) customer &et'i*s
+. Agreement bet1een s)'re()'n 'n& c*ient in respect of t)e O"!I"9
I"PS#%"# SUCCOR# ser7ice offere&.
/. Agreement bet1een t)e Depository C'rticip'nt 'n& t)e c*ient for
pro7i&ing t)e tr'ns'ction st'tement t)roug) Internet.
5. Irre7oc'b*e po1er of 'ttorney
6. Agreement bet1een t)e DC 'n& t)e person see(ing to open 'n 'ccount 1it) t)e
DC.
8. %'inten'nce of c*ient@s 'ccount on ' running 'ccount b'ses by SSBI.
=. Agreemen5 gi7ing t)e rig)t of *ien on t)e cre&it b'*'nce of c*ient in
"S tr'&ing.
.. Agreement gi7ing t)e rig)t of *ien on t)e cre&it b'*'nce of c*ient in
-S tr'&ing.
2. Ris( &isc*osure &ocument (c's) segment)
8$

INDUSTRY ANALYSIS USING PORTER/S @ FORCES
MODEL
SUBSTITUTES
%utu'* Fun&s
Insur'nce
-'n( FD
SUPPLIERS
:eb m'int'iners
"SC!
CSD!
"S
-S
%CF
"CDF
POTENTIAL ENTERANT
In7estm'rt
P'rious -'n(s
GeoDit
Cip)er
U#I Securities !t&.
Refco Group !t&.
ID-I C'pit'* %(t. Ser7ices !t&.
8+

BUYERS
Sm'** In7estors
Fr'nc)iseA-usiness
C'rtners
H"I@s
%F Comp'nies
HUF
Institution'*
In7estors
COMPETITORS
ICICI :eb #r'&e !t&
6p'is'.com
Bot'( Securities !t&
In&i' -u**s
%oti*'* Os1'* Securities !t&
HDFC Securities !t&
%'r1'&i Fin'nce !t&
8/

<.SUPPLIERS
"S E -S 're p*'ygroun&s 1)ere common 'n in7estor tr'&e t)roug) stoc( bro(ing
)ouses3 for 1)ic) t)ey )'7e to t'(e permission from "SA-S.
"S E -S 're un&er t)e pur7ie1 of S-I3 t)'t@s 1)y stoc( bro(ing )ouses *i(e
SSBI3 )'7e *o1 b'rg'ining po1er. -ut )ere t)ere is one '&7'nt'ge t)'t "SA-S
)'7e i.e. t)ey c'nnot go for for1'r& integr'tion.
%CF E "CDF 're stoc( e<c)'nges 1)ic) tr'&e in commo&ities 'n&
&eri7'ti7es. Here 'g'in stoc( bro(ing )ouses )'7e to fo**o1 ru*es 'n& regu*'tion
of t)e s'me.
:eb m'int'iners 're comp'nies 1)ic) m'int'in 1eb sites E tec)nic'* 'spects of
t)e s'me. Here stoc( bro(ing )ouses *i(e SSBI c'n )'7e more b'rg'ining po1er
&ue to stiff competition 'mong 1eb m'int'ining comp'nies.
:eb m'int'iners 're comp'nies 1)o m'(e 'n& m'int'in soft1're@s for stoc(
bro(ing )ouses. If s'y for e<'mp*e stoc( bro(ing )ouses s1itc)es o7er to ot)er
1eb m'int'iners t)en t)'t comp'ny c'nnot un&erst'n& t)e mec)'nisms of
soft1're@s. So it is ?uite )ig) s1itc)ing cost.
=BUYERS
#)ere 're 7'rious types of in7estors 1)o tr'&e t)roug) stoc( bro(ing )ouses *i(e
SSBI3 1)ic) inc*u&es in7estors *i(e sm'** in7estors3 me&ium net 1ort) in7estors3
business p'rtners3 institution'* in7estors 'n& mutu'* fun& comp'nies.
Here t)e b'rg'ining po1er of stoc( bro(ing )ouses &epen&s on )o1 big t)e
in7estor is.
So )ere 1e c'n s'y t)'t b'rg'ining po1er of stoc( bro(ing )ouses is )ig) in c'se
of sm'** in7estors E HUF.
:)i*e its mo&er'te in H"IA%"I@s 'n& business p'rtners.
:)i*e its *ess in c'se of mutu'* fun& comp'nies 'n& institution'* in7estors.
#)ere is competiti7e bu44 in stoc( bro(ing in&ustry3 competitors 're offering *o1
bro(er'ge 'n& best ser7ices 1it) '&&e& fe'ture. So s1itc)ing cost is pretty muc) *ess. So
t)e buyer c'n e'si*y s1itc) o7er to competitors pro&uct.
>En%r1 Barr&er+
Huge c'pit'*J9 C'pit'* is necess'ry not on*y for fi<e& f'ci*ities but '*so for
customers cre&it 'n& 'bsorbing st'rt up *osses. #o st'rt ' stoc( bro(ing )ouse3 one nee&s
)uge c'pit'* for tec)no*ogy up gr'&'tion 'n& s(i**e& m'npo1er.
85

#ec)no*ogyJ9 #ec)no*ogy for stoc( bro(ing )ouses is *ife s'7ing &e7ice. Stoc(
bro(ing re?uires )uge c'pit'* to m'(e t)eir pro&ucts user frien&*y3 1)ic) in turn re?uires
c'pit'* to emp*oy s(i**e& m'npo1er. #)us3 tec)no*ogy cou*& be one of t)e entry b'rrier.
Regu*'tory Constr'intsJ9 Obt'ining ' *icense is ' te&ious Dob for ' stoc( bro(ing
)ouse. It s)ou*& comp*y 1it) t)e regu*'tion of t)e go7erning bo&ies *i(e S-I3 "SD!3
etc. For ' stoc( bro(ing )ouses to p*unge into t)e stoc( bro(ing in&ustry3 it nee&s to )'7e
some (in& of fin'nci'* b'c(groun& 'n& e<pertise. #)us3 regu*'tors constr'ints cou*& be 'n
entry b'rrier.
<perience cur7eJ9 #)e core competency in t)is in&ustry is t)e ser7ices 1)ic) 're
pro7i&e& to t)e en&9users 'n& t)e rese'rc) b'se& 'cti7ities 1)ic) inc*u&es H#ICSI3
fun&'ment'* 's 1e** 's tec)nic'* script 'n'*ysis. A*so t)e most import'nt t)ing 1)ic)
)e*ps '*re'&y est'b*is)e& firms is9H#RUS#I 1)ic) peop*e 1ou*& be )'7ing on firms *i(e
SSBI 3 %oti*'* Os1'*3 etc. t)is is 7ery &ifficu*t for ne1 comp'nies to imit'te.
"et1or(J9 t)e HRe'c)I to t)e customer is t)e (ey f'ctor in t)e in&ustry. #)e
net1or( of t)e comp'nies *i(e %oti*'* Os1'*3 S)'re()'n3 ICICI is 7ery efficient 'n&
spre'&e& '** o7er In&i'. It 1i** t'(e time for ' ne1 entr'nt to est'b*is) suc) ' )uge
net1or( (e.g. %'r1'&i)3 1)ic) s'y t)'t3 I"et1or( c'n come up 's most &ifficu*t entry
b'rrier to o7ercome.I
<pecte& Ret'*i'tionJ9 1)ene7er ' ne1 p*'yer comes in t)e in&ustry3 t)e o*&
comp'nies )'7e 'n option to re&uce t)e prices of t)eir pro&uct. #)is (in& of pr'ctice is
c'**e& e<pecte& Ret'*i'tion 1)ic) is '*so possib*e in t)is in&ustry in terms of *ess
bro(er'ge r'tes 'n& re&uce& 'ccount opening c)'rges. .g. before t)e entry of so m'ny
me1 comp'nies3 S)'re()'n 1's )'7ing t1o types of 'ccounts 7i4. spee& tr'&e spee&
tr'&e p*us3 1)ic) 1ere costing $,,, E $6,, 'ccount opening c)'rges respecti7e*y. -ut
&ue to competition3 t)ey )'7e come up 1it) on*y one 'ccount i.e. spee& tr'&e p*us 1it)
t)e 'ccount c)'rges of Rs.$,,,.
?COMPETITORS
#)e comp'ny is f'cing t)e competition from *oc'* 's 1e** 's n'tion'* *e7e*
p*'yers. #)e *oc'* p*'yers pro7i&e f'ci*ity for off9*ine tr'&ing 1)i*e t)e n'tion'* p*'yers
*i(e ICICI&irect.com 'n& Bot'(street.com3 HDFC Security pro7i&e on*ine tr'&ing
ser7ices.
#)ere 're '*so ot)er big n'mes *i(e In&i'bu**s3 %oti*'* Os1'*3 6p'is' 'n&
%'r1'&i encirc*es t)e comp'ny form bot) t)e si&es by pro7i&ing on*ine 'n& off9*ine
tr'&ing 1it) competiti7e ser7ices.
@POTENTIAL ENTRANT
Fe1 entr'nts3 1)ic) m'y t'(e '1'y t)e s)'re of current p*'yers.
86

#)e potenti'* entr'nt in R'D(ot city *i(e In7est m'rt3 JeoDit 'n& Cip)er 1)ic) 're
coming in ne'r future.
"'tion'*i4e& b'n(s 're '*so t)in(ing to enter in t)is fie*& by tieing up 1it)
bro(ing )ouses. g -'n( Of -'ro&'.
ASUBSTITUTES
Here substitutes 're suc) instruments 1)ic) c'n be use& inste'& of in7esting in +hare+.
#)e instruments *i(e -'n( FD3 insur'nce3 mutu'* fun&s 're t)e substitutes.
If t)e use of t)is instruments incre'se t)is m'y be &is'&7'nt'ge for t)e stoc(
bro(ing )ouses.
#)e comp'nies 'n& b'n(s 1)ic) 're )'7ing t)ese instruments c'n p*unge into t)is
in&ustry.
-'n(s 're p*'nning to Dump 1)i*e ot)ers m'y come.
88

COMPETITIVE ANALYSIS
F)22)6er:
#)e fo**o1ers 're Dust b*in&*y fo**o1 t)e ot)er p*'yer 1)ic) 're *e'&er 'n&
c)'**enges.
#)e p*'yers *i(e 6 Cis'3 %oti*'* Os1'*3 HDFC Securities3 'n& Bot'(street 're t)e
fo**o1ers.
LEADER:
ICICI&irect.com is ' *e'&er in t)e on*ine 'ccount 1)ic) is )'7ing $3+53,,,
'ccount in t)e country.
:)i*e in off*ine 'ccount S)'re()'n is *e'&ing 1it) 853,,, off*ine 'ccounts.
NICHER:
ICICI&irect.com 'n& Bot'(street.com 're t)e t1o stoc( bro(ing )ouses 1)ic)
're focusing on*y on on*ine in7estors.
CHALLENGER:
S)'re()'n3 Bot'(street 'n& In&i'bu**s come un&er t)is )e'&.
S)'re()'n c)'**enges competitors by pro7i&ing ?u'*ity ser7ices 'n& rese'rc)
b'se& '&7ice.
In&i'bu**s is '*so c)'**enging 1it) *o1 bro(er'ge r'tes 'n& c*'ss one ser7ices.

8=

FINANCE DEPARTMENT
!i(e -*oo& is t)e most import'nt in our bo&y3 in business Fin'nce is t)e b*oo& of 'ny
business. Fin'nce is nee&e& for '** t)e 'cti7ities *i(e pro&uction or ser7ices 's 1e** 's
t)eir &istribution. #)e fin'nce &ep'rtment &irect*y inf*uences '** t)e functions of t)e
ot)er &ep'rtments. A*so fin'nce )'s to gi7e e?u'* import'nce to '** &ep'rtments. Fin'nce
is t)'t '&ministr'ti7e 're' or set of '&ministr'ti7e function in 'n org'ni4'tion3 1)ic)
re*'te 1it) t)e 'rr'ngements of c's) E cre&it so t)'t t)ey org'ni4'tion m'y )'7e t)e
me'ns to c'rry out its obDecti7e 's s'tisf'ctori*y 's possib*e. S)'re()'n )'s speci'*
'ccounts &ep'rtment for sep'r'te c'*cu*'tion of p'y9in 'n& p'yout of fun&s 'ccor&ing to
t)e c*ient0s CrofitA!oss. Fin'nce m'n'gement is &one 't S)'re()'n is &one by m'n'ging
t)e stoc(s in t)e Dem't 'ccounts 'n& fun&s in t)e m'rgin E tr'&ing 'ccounts
Fin'nce is t)e *ifeb*oo& of 'n org'ni4'tion to continue its 'cti7ities 'n& t)e fin'nce
m'n'gement 't S)'re()'n c'n be &i7i&e& into t1o m'Dor p'rts 7i4. DC (&epository
p'rticip'tion) 'n& Accounts m'n'gement3 1)ic) 're s)o1n in t)e figure gi7en 'bo7e.
DC is tre'te& 's ' sep'r'te &ep'rtment 't S)'re()'n 'n& is co7ere& in t)e b'c( office
m'n'gement in t)e org'ni4'tion structure. In simp*e 1or&s3 DC me'ns pro7i&ing t)e
f'ci*ity to t)e c*ients for m'n'ging t)e stoc( boug)tAso*& by t)em. DC co7ers t1o m'Dor
termino*ogies 7i4. +e%%2e3en%+ 'n& t)e a5*%&)n+ 1)ic) is ' p'rt of m'n'ging Dem't
'ccount. Sett*ements 's &efine& by SEBI !Se*5r&%&e+ E4*han9e B)ar( )8 In(&a# 're
#[+3 current*y 'n& it me'ns t)'t t)e Dem't 'ccount of t)e c*ients 're prone to be
sufficient for se**ing ' script 1it) no &ebit 't '**3 i.e.3 t)e 'ccount must )'7e t)e so*&
8.

Amount of stoc( to fu*fi** t)e sett*ement 'fter + &'ys from tr'&e9&'y. #)e sett*ements for
D'y9#r'&ers is not nee&e& bec'use t)ey buyAse** stoc(s in t)'t p'rticu*'r &'y3 on*y t)e
&e*i7ery tr'&es 're nee&e& to be sett*e& bec'use if you se** $,,, s)'res of3 s'y SAI! t)en
your 'ccount must )'7e t)e stoc( before you se** it or it must be t)ere in your Dem't
before t)e ne<t &'y0s tr'&ing begins (m'r(et opens). Gener'**y3 t)e timings 're 2J/, 'n&
/J,, 's ' &e'&*ine for t)e c*ient 'n& )e must pro7i&e t)e stoc( for gi7ing ' &e*i7ery to t)e
buyer. #)e c)'rt s)o1s t)e tot'* tr'ns'ction bet1een t1o c*ients.
#)e c)'rt s)o1s t)e process t)'t t)e re?uest for se**ing 'n& buying p'sses t)roug) t)e
DCs of t)e respecti7e c*ients 'n& fin'**y t)e e<c)'nges *i(e SKSE !Sa5ra+h%ra K5%*h
S%)*k E4*han9e# becomes t)e contro**ing interme&i'ry for t)e &e*i7ery of stoc(s 'n& t)is
process is &one in t1o &'ys. "o1'&'ys3 's b'n(s 're becoming f'st for 9Fun& #r'nsfer
(F#) 'n& C)one9b'n(ing is getting more popu*'rity3 SEBI is t)in(ing to m'(e t)e
fin'nci'* m'r(et of In&i' to )'7e ' m'<imum spee& of tr'ns'ctions Dust *i(e t)e ot)er
n'tions in t)e 1or*& 'n& proposing for TJ2 sett*ement sc)eme but t)e system is not
enoug) competent for t)'t t)ing. -ut soon or *'ter 1e 1i** )'7e suc) ' sett*ement system
in In&i'3 's s'i& by %r. J. ". -'Dp'i3 c)'irm'n )8 SEBI.
#)e c*ient3 if not c'p'b*e of pro7i&ing t)e &e*i7ery of s'y3 $,,, s)'res of SAI! t)en t)e
A5*%&)n+ 're initi'te& by t)e e<c)'nges 'n& t)e c*ient )'s to p'y for t)e price pre7'i*ing
in t)e m'r(et 1it) 596K pen'*ty. #)e pen'*ty c'n go on m'<imum to +,K more t)'n t)e
m'r(et price of t)e so*& stoc(. Gener'**y3 it is (no1n 's ' 751&n9 a5*%&)n 'n& ' s'me
(in& of 'uction is for se**ing t)e stoc( for 1)ic) t)e buyer 1's pro7e& un'b*e to p'y t)e
price is c'rrie& out by e<c)'nge3 (no1n 's t)e +e22&n9 a5*%&)n. An& ' &ebit or cre&it note
is pro7i&e& in t)e respecti7e c'se of 'uction to t)e c*ients3 i.e.3 for buying 'uction &ebit
note is gi7en on t)e #[5 b'sis 'n& in c'se of se**ing 'uction t)e cre&it note is gi7en on
#[6 b'sis. #)ere 're t1o types of 'uctions c'**e& 's In%erna2 a5*%&)n+ D Marke%
a5*%&)n+ t)e intern'* 'uctions 're &efine& 's t)e 'uctions c'rrie& out bet1een t)e ot)er
s)ops of S)'re()'n 'n& m'r(et 'uctions 're t)ose 's e<p*'ine& e'r*ier3 t)e 'uction c'rrie& out
in t)e m'r(et.
#)is is '** 'bout sett*ements but no1 s1itc) to fun&s m'n'gement or 'ccounts
m'n'gement 't S)'re()'n. #)e 'ccounts 're &ifferent t)'t is t)e m'rgin 'Ac for &eposits of
t)e c*ient 'n& tr'&ing 'Ac for 1)ic) CrofitA!oss 're sett*e&. #)e co**ection of fun&s from t)e
82

c*ients 1)o )'& ' &ebit b'*'nce or m'&e ' *oss 're m'&e on t)e ne<t &'y of tr'&ing 'n& t)e
p'yments to t)e profiting tr'&ers 're m'&e 'fter t1o &'ys of tr'&ing bec'use t)e c)e?ues 're
recei7e& from HAO 'n& t)en 0a1;)5% is &one 'n& Pa1;&n is 's e<p*'ine& t)'t 'mounts to be
t'(en from t)e c*ients. In t)is 1'y3 'ccounts 're m'n'ge& but in c'se if t)e c*ient is un'b*e
to p'y3 t)e &eposit from t)e m'rgin 'Ac is cut &o1n to t)e p'yments 'n& in c'se if ' c*ient is
)'7ing ' cre&it b'*'nce in FEO tr'&ing t)oug) )e )'& ' &ebit b'*'nce in c's)9"S E -S
tr'&ing3 ' JP re?uest is sent to HAO for tot'*ing t)e t)ree b'*'nces. #)e m'in 'im for 'ccounts
m'n'gement is t)'t t)e c*ients must )'7e ' cre&it or no &ebit on t)e ne<t &'y.
#)e DC ser7ices pro7i&e& by S)'re()'n 're f'**ing un&er t)e regu*'tion of NSDL
!Na%&)na2 Se*5r&%&e+ De0)+&%)r1 L&3&%e(# an( CDSL !Cen%ra2 De0)+&%)r1 Ser'&*e+
L&3&%e(# org'ni4'tions go7erne& by SEBI to regu*'te t)e &epository ser7ices in t)e interest
of t)e in7estors. So t)e fin'nci'* m'r(et in In&i' is go7erne& by M&n&+%r1 )8 8&nan*e un&er
1)ic) t1o m'Dor bo&ies 7i4. SEBI E RBI 're co7ere& 'n& un&er R-I t)e b'n(s 'n& ot)er
fin'nci'* institutions 're co7ere& 1)i*e S-I co7ers t)e e<c)'nges3 "SD! E CDS! 'n&
t)e 1)o*e DC ser7ice pro7i&ers 1it) t)e bro(ers to t)e in7estors 't t)e *o1er en& of t)e
fin'nci'* m'r(et.
In t)is 1'y 1e )'7e g'ine& ' me'ningfu* (no1*e&ge 'bout In&i'0s fin'nci'* m'r(et 'n& its
structure from t)is tr'ining 't S)'re()'n. )i t)is 1'y3 t)e fin'nce function is c'rrie& out 't
S)'re()'n by fo**o1ing t)e gui&e*ines gi7en by SEBI. An& t)e comp'ny is ' pri7'te
*imite& one 1it) its o1n po*icies for &isc*osing its fin'nci'* st'tements3 so 1e 're not 'b*e to
gi7e 'ny figures for s)o1ing t)e fin'nci'* position of t)e comp'ny.
GIDC RAJJU SHROFF ROF! I"S#I#U# OF =,%A"AG %A"# SUDIS
=,

HUMAN RESOURCE DEPARTMENT
Hum'n resource is t)e cruci'* resource t)'t ' comp'ny c'n use to gro1 1it) t)e 1or( or t)e
emp*oyees. HR% 'cti7ities 't S)'re()'n st'rt from in&uction to t)e specific Dob tr'ining 'n& 're
&one by HAO 't %umb'i. HAO t'(es ' 1ritten test 'n& se*ection inter7ie1 for fi**ing up 7'c'ncies in
br'nc)es but t)e recruitment is &one by t)e br'nc) itse*f 'n& t)e se*ection is performe& by HAO
from t)e screene& 'pp*ic'nts.
Any ne1 recruit is first*y in&ucte& to t)e comp'ny 'n& sent to # E D &ep'rtment t)'t is co7ere&
un&er HRD 'n& # E D progr'mmes m'(es emp*oyees '1're 'bout '** t)e 'cti7itiesADobs 1it)in
t)e &ep'rtment )eAs)e is to be recruite&. Suppose if3 I 1ou*& be recruite& for fin'nce &ep'rtment
t)en t)e fin'nce re*'te& emp*oyees 're (no1n to me 1it) t)eir 1or( profi*es3 t)'t is3 1)'t t)ey
re'**y &oT
#)en t)e specific Dob tr'ining is pro7i&e& 't HAO 'n& t)e person )'s to (eep in touc) 1it) t)e
concerne& &ep'rtment 't HAO on internet bec'use )eAs)e )'s to so*7e m'ny conf*icts 'rising in t)e
in7estor0s min& 'n& to )'7e 'n up9to9&'te inform'tion reg'r&ing t)e proce&ures 'n& 'ny ne1
f'ci*ities or po*icies to reso*7e t)e prob*ems of t)e c*ients. It is ' must for e'c) emp*oyee bec'use
t)e emp*oyee is t)e peop*e by 1)om t)e comp'ny gets its customers 'n& ret'ins t)em.
HRC (Hum'n Resource C*'nning)3 HRIS (Hum'n Resource Inform'tion System)3 Recruitment E
Se*ection3 C'reer p*'nning 'n& &e7e*opment3 Assessment E &e7e*opment of emp*oyees for
Cerform'nce 'ppr'is'*3 etc. 'cti7ities of m'n'ging t)e HR 't S)'re()'n is m'int'ine& in ' 1'y to
meet t)e re?uirements.
#)e corpor'te cu*ture 't S)'re()'n is m'int'ine& in suc) ' 1'y t)'t t)e peop*e 're )e*pfu* to
e'c) ot)er 'n& e'ger to get t)e 1or( &one 's soon 's possib*e 1it) ' cooper'ti7e t)in(ing. An
'&&ition'* Rs. $,,,, is pro7i&e& for e'c) out*et of S)'re()'n to moti7'te its emp*oyees by
perform'nce 'ppr'is'* 'n& '*so t)e )e'&s of e'c) &ep'rtments 'n& br'c)es )'s to go t)roug) '
/8,
8
perform'nce 'ppr'is'* for m'int'ining t)e consistency in gro1t) of t)e comp'ny.In t)e en&
1e c'n s'y t)'t t)e )um'n resource of S)'re()'n is ' best m'n'ge& 'n& use& for t)e continuous
gro1t) 'n& &e7e*opment of t)e comp'ny for its future p*'ns to be 'c)ie7e& time9to9time.
GIDC RAJJU SHROFF ROF! I"S#I#U# OF =$%A"AG %A"# SUDIS
=$

MAN PO,ER PLANNING IN RAJKOT BRANCH
Man 0)6er +%r5*%5re
#erritory m'n'ger $
-r'nc) )e'& $
Asst.%'n'ger +
Dea2er: ; On *ine /
Off *ine /
Commo&ity $
FEO +
-SE "S 5
-'c( office /
<ecuti7es =
Ceon 5
TOTAL ><
Tra&nee @
T)%a2 S%a88 >A
GIDC RAJJU SHROFF ROF! I"S#I#U# OF =+%A"AG %A"# SUDIS
=+

Re*r5&%3en% +e2e*%&)n 0r)*e++
G&'e %he a('er%&+e3en%
Re*e&'&n9 a002&*a%&)n
Sh)r%2&+% %he *an(&(a%e !6h) are K5a2&8&e(#
In%er'&e6 *a22
In%er'&e6
Se2e*%&)n )8 *an(&(a%e
O88er 2e%%er
J)&n&n9 %he )r9an&Ha%&)n
GIDC RAJJU SHROFF ROF! I"S#I#U# OF =/%A"AG %A"# SUDIS
=/

J)&n&n9 F)r3a2&%&e+
S)'re()'n 1e*comes '** emp*oyees 'n& is confi&ent t)'t t)is 'ssoci'tion 1i**
be mutu'**y enric)ing 'n& c)'**enging. It is essenti'* for t)e HR te'm to (eep
recor& of your person'* 'n& profession'* inform'tion to en'b*e spee&y
processing of inform'tion 'n& p*'nning re*'ting to 're's suc) 's t'< 'n&
me&ic'* insur'nce 's 1e** 's '**o1ing us to 'ssist you in t)e time of emergency.
In t)is reg'r& 1e re?uest '** ne1 emp*oyees to p*e'se furnis) HR 1it) t)e fo**o1ing inform'tion.
#)e &ocument'tion nee&e& f'**s into t)ree prim'ry c'tegoriesJ person'* inform'tion3 Doining report
'n& ot)er forms.
Per+)na2 In8)r3a%&)n
For t)e person'* recor& of t)e emp*oyee t)e fo**o1ing &ocuments s)ou*& be submitte& to t)e HR
te'm on t)e &'y of DoiningJ
Du*y comp*ete& App*ic'tion Form
#1o p'ssport si4e p)otogr'p)s
Croof of &'te of birt)
Copy of e&uc'tion'* certific'tesJ gr'&u'tionApost gr'&u'tionA&ip*om'sA"CF% certific'tes
(1)ere7er 'pp*ic'b*e)
Re*ie7ing certific'te from t)e pre7ious emp*oyer3 if 'pp*ic'b*e
Croof of *'st &r'1n s'*'ry
Copy of %'pin registr'tion (1)ere7er 'pp*ic'b*e)
%e&ic'* e<'min'tion reports
-'n( 'ccount &et'i*s
Insi&er #r'&ing Agreement (on*y for &esign'te& emp*oyee)
Confi&enti'*ity Agreement
J)&n&n9 re0)r%
GIDC RAJJU SHROFF ROF! I"S#I#U# OF =5%A"AG %A"# SUDIS
=5

In '&&ition t)e emp*oyee is re?uire& to fi** out ' Joining Report 's per t)e form't 'tt'c)e& in t)e
'nne<ure.
O%her 8)r3+
#)e fo**o1ing formsA'greements '*so nee& to be comp*ete&J
%e&i9c*'im insur'nce 'pp*ic'tion form
Cro7i&ent Fun& tr'nsferA'pp*ic'tion form
Cro7i&ent Fun& nomin'tion form
Gr'tuity nomin'tion form
Acci&ent Insur'nce nomin'tion form
#'< estim'teAS'7ings &ec*'r'tion form
%'pin registr'tion
Tra&n&n9 an( (e'e2)03en%
=6

In(5*%&)n
In&uction forms 'n integr'* p'rt of S)'re()'n0s cu*ture. #)e
in&uction progr'mmes is &esigne& 1it) t)e fo**o1ing obDecti7esJ
Cro7i&e 'n o7er7ie1 of t)e comp'ny0s business 'n& pro&uct portfo*io.
n'b*e t)e ne1 emp*oyee to un&erst'n& t)e 1or( cu*ture 'n& processesAsystems.
Cro7i&e 'n opportunity to inter'ct 1it) )isA)er superiorsAco**e'gues 'n& en'b*e )im to
un&erst'n& t)em better.
During in&uction3 emp*oyees 'reJ
Cro7i&e& t)eir o1n 1or(sp'ce
Gi7en ' copy of t)is mp*oyee H'n&boo(
Intro&uce& to 'ssignments re*'te& to t)eir ro*e
Induction process
#)e function )e'&s '*ong 1it) t)e HR te'm &esigns t)e in&uction progr'mme. #)e &ur'tion of t)e
in&uction progr'mme 7'ries from t1o &'ys to ' 1ee( &epen&ing upon t)e ro*e on t)e ne1 Doiner.
#)e in&uction progr'mme in t)e comp'ny co7ers t)ree bro'& 're'sJ
I. About Sharekhan
Intro&uction to S)'re()'nJ 7ision3 business3 pro&ucts 'n& c*iente*e
Org'nis'tion structureJ (ey functions 'n& t)eir 'ccount'bi*ities3 function )e'&s
I# systems 'n& po*icies
II. HR philosophy and practices
S)'re()'n 7'*ues
O7er7ie1 of HR po*icies3 systems 'n& pr'ctices
O7er7ie1 of ris( E comp*i'nce pr'ctices
III. About the job
Bey responsibi*ities 'n& e<pect'tions of t)e Dob
Go'* setting 'n& perform'nce me'surements

C)n8&(en%&a2&%1 A9ree3en%
On Doining S)'re()'n it is imper'ti7e for '** emp*oyees
=8

to sign 'n& 'bi&e by ' confi&enti'*ity
'greement3 1)ic) is
*eg'**y bin&ing.
It is 'n 'greement st'ting bot) &uring 'n& 'fter emp*oyment '** &'t' pert'ining to 'ny businesses
in7o*7ing S)'re()'n is to be (ept confi&enti'* 'n& protecte& 'n& not to be s)'re& 1it) 'nyone.
Inform'tion re*'ting to t)e comp'ny0s business3 &e'*ings3 met)o&s3 'ppointments3 pr'ctices3
tr'ns'ctions3 &esigns 'n& processes or 'ff'irs is of subst'nti'* 7'*ue 'n& s)'** be tre'te& 's being
confi&enti'*3 1)et)er or not it is in&i7i&u'**y i&entifie& 's confi&enti'*. It is t)e subDect of
re'son'b*e efforts to m'int'in its secrecy 'n& is being pro7i&e& 'n& &isc*ose& to you so*e*y for use
in connection 1it) your emp*oyment by t)e comp'ny.
#)is 'greement '*so bin&s emp*oyees to up)o*& '** et)ic'* pr'ctices espouse& by t)e comp'ny.
During t)e course of your emp*oyment3 you 'gree t)'t youJ
:i** reg'r& 'n& preser7e '** tr'&e 'n& propriet'ry inform'tion of t)e comp'ny 's )ig)*y
confi&enti'*.
:i** not &isc*ose3 nor permit to be &isc*ose&3 'ny inform'tion to 'ny person or entity3
1it)out 1ritten consent 'n& 'ppro7'* from t)e comp'ny.
:i** not repro&uce or &up*ic'te3 'n& 1i** not permit 'ny person to repro&uce or &up*ic'te
'ny inform'tion 1it)out t)e comp'ny0s 1ritten consent 'n& 'ppro7'*.
:i** not m'(e 'ny use of inform'tion for t)eir o1n benefit or t)e benefit of 'ny person or
entity ot)er t)'n t)e comp'ny.
:i** return '** inform'tion 'n& &'t' to t)e comp'ny imme&i'te*y upon t)e re?uest for t)e
s'me.
mp*oyees 1)o improper*y use or &isc*ose propriet'ry inform'tion or confi&enti'* business
inform'tion 1i** be subDect to &iscip*in'ry 'ction3 up to 'n& inc*u&ing imme&i'te termin'tion of
emp*oyment3 e7en if t)ey &o not 'ctu'**y benefit from t)e &isc*ose& inform'tion.
GIDC RAJJU SHROFF ROF! I"S#I#U# OF ==%A"AG %A"# SUDIS
==

SHAREKHANS massage to all member
#)is )'n&boo( )'s been &esigne& to communic'te to our
te'm t)e 7'rious Hum'n Resource (HR) po*iciesApr'ctices t)'t 1e 're trying to
institution'*ise in our org'nis'tion.
#)is )'n&boo( &issemin'tes inform'tion on '** t)e SSBI In7estor Ser7ices C7t.
!t& (S)'re()'n) po*icies3 proce&ures3 benefits 'n& responsibi*ities of t)e emp*oyees. #)e po*icies
)'7e been &esigne& 1it) ' focus on intro&ucing m'r(et '*igne& HR pr'ctices 't S)'re()'n 1)i*e
meeting t)e nee&s of in&i7i&u'* emp*oyees 'n& '&&ressing t)eir concerns.
#)is )'n&boo( is not 'n 'greement or contr'ct of emp*oyment 'n& t)erefore nee& not be construe&
's ' contr'ct. #)e m'n'gement of S)'re()'n reser7es t)e rig)t to mo&ify t)is )'n&boo( from time
to time 't its so*e &iscretion.
#)is )'n&boo( is for intern'* circu*'tion on*y. :e 1ou*& re?uest you to re'&3 un&erst'n& 'n&
comp*y 1it) '** t)e pro7isions of t)is )'n&boo(. If you nee& 'ny c*'rific'tions or furt)er
inform'tion on 'ny 'spect of t)is )'n&boo(3 you c'n get in touc) 1it) your imme&i'te superior or
t)e HR te'm.
:e 1e*come you to t)e S)'re()'n f'mi*y 'n& )ope your 'ssoci'tion 1it) us is mutu'**y
E"CITING FUN FILLING an( CHALLENGINGYY
GIDC RAJJU SHROFF ROF! I"S#I#U# OF =.%A"AG %A"# SUDIS
=.

SHAREKHAN/S Be2&e8 an( E40e*%a%&)n+
Our 7ision 't S)'re()'n is >to empo1er t)e in7estor to m'(e better
in7estment &ecisions t)roug) ?u'*ity ser7ice 'n& superior '&7ice.>
S)'re()'n be*ie7e in 'n& promote ' cu*ture t)'tJ
Stimu*'tes t)e emp*oyees0 &ri7e to e<ce*
"urture t)eir entrepreneuri'* spirit by pro7i&ing t)em e<posure to c)'**enging 1or(
opportunities 'n& imp'rting 'utonomy to function effecti7e*y
Support t)e emp*oyees to &e*i7er by incorpor'ting pr'ctices 'ime& 't
o mp*oyee &e7e*opmentAs(i** 'c?uisition
o n)'ncing tr'nsp'rency 'n& trust3 being non9&iscrimin'ti7e to 'ny
pr'cticeAproce&ureAsystem
o st'b*is)ing norms to1'r&s enforcing &iscip*ine in t)e org'nis'tion 's reg'r&s 1or(
eti?uettes
Cromotes co**'bor'tion 'n& te'm spirit 'mongst t)e emp*oyees
Ac(no1*e&ges 'n& re1'r&s in&i7i&u'* 'n& te'm contribution t)roug) 'ppropri'te re1'r&s3
recognition 'n& compens'tion
-ui*&s ' sense of o1ners)ip 'cross t)e org'nis'tion for '&)erence to ris( 'n& comp*i'nce
proce&ures 'mongst '** emp*oyees 'n& c)'nne* p'rtners.
,ha% Sharekhan E40e*% 8r)3 %here %ea3-
In our in&ustry3 re*'tions)ips 1it) c*ients 're )ig)*y critic'*. De7e*oping customer focuse&
so*utions 'n& m'n'ging t)eir e<pect'tions effecti7e*y 'n& &e*ig)ting t)em is t)e (ey to our success.
=2

S)'re()'n be*ie7e t)'t 'n En9a9e( D C)33&%%e( 1or(force is in&ispens'b*e for )ig) ?u'*ity
customer ser7ice.
S)'re()'n is in 'n in&ustry t)'t is go7erne& by stringent regu*'tions 'n& non9comp*i'nces c'n *e'&
to fin'nci'* *oss 'n& *oss of goo&1i**. #)ey e<pect t)ere te'm to function in t'n&em 1it) t)e
org'ni4'tion 'n& support t)e m'n'gement to incu*c'te ' strong &iscip*ine 'cross t)e org'ni4'tion
At S)'re()'n 1e be*ie7e in )'7ing ' strong perform'nce9oriente& cu*ture. :e 're con7ince& t)'t
t)is is t)e best 1'y to encour'ge emp*oyees to set )ig) perform'nce st'n&'r&s 'n& go'*s t)'t 're
tr'c(e&3 'n& perform'nce t)'t is e7'*u'te& to &eci&e t)e re1'r&s.
S)'re()'n strong*y be*ie7e in emp*oyee &e7e*opment 'n& gro1t). In t)is competiti7e en7ironment3
S)'re()'n e<pect t)eir emp*oyees to be 'bre'st of t)e e<tern'* c)'nges 'n& t'(e initi'ti7es to '&opt
t)e ne1 c)'nges. As p'rt of t)eir HR initi'ti7es3 #)ey 1i** i&entify tr'ining nee&s3 &esign
'ppropri'te tr'ining progr'mmes 'n& con&uct t)em on regu*'r b'sis.
ea!e and holiday
At SSBI 1e )'7e est'b*is)e& ' set of *e'7e ru*es t)'t 're *eg'**y
comp*i'nt 'n& t)'t pro7i&e for re'son'b*e *e'7e re?uirements of
emp*oyees3 gi7ing t)em t)e opportunity to m'int'in ' 1or(9*ife b'*'nce.
GIDC RAJJU SHROFF ROF! I"S#I#U# OF .,%A"AG %A"# SUDIS
.,

ea!es at SSKI
SSBI pro7i&es t)e fo**o1ing types of *e'7esA)o*i&'ysJ
Ho*i&'ys
Cri7i*ege *e'7e
%'ternity *e'7e
C'ternity *e'7e
ea!e accounting year
#)e ye'r for c'*cu*'tion of *e'7e 1ou*& be t)e s'me 's t)e fin'nci'* ye'r^Apri* $st to %'rc) /$st.
Cro r't' '&Dustments 1i** be m'&e to bring entit*ements in *ine 1it) t)is.
#)e current *e'7e po*icy 1i** be 7'*i& upto /$st %'rc) +,,6 'n& t)e re7ise& po*icy t)'t is *iste&
be*o1 1i** be effecti7e $st Apri* +,,6.
"etailed guidelines
A. H)2&(a1+
#)e comp'ny 1i** &ec*'re ' *ist of $+ )o*i&'ys e7ery ye'r b'se& on t)e )o*i&'ys &ec*'re& by t)e
e<c)'nges3 b'n( )o*i&'ys 'n& region'* festi7'*s. C*e'se cont'ct your function )e'& or br'nc) )e'&
for t)e current *ist.
B. C2a++&8&*a%&)n )8 2ea'e D e2&9&7&2&%1
Lea'e %10e N) )8 (a1+ !ann5a2#
'. Cri7i*ege *e'7e +6 1or(ing &'ys
b. C'ternity *e'7e + 1or(ing &'ys
c. %'ternity *e'7e $+ 1ee(s
a. Pr&'&2e9e 2ea'e !PL#
GIDC RAJJU SHROFF ROF! I"S#I#U# OF .$%A"AG %A"# SUDIS
.$

*igibi*ity 9 A** confirme& emp*oyees
9 A** emp*oyees on prob'tionAtr'inees 1i** be e*igib*e for one
1or(ing &'y *e'7e per
mont). On confirm'tion3 t)e *e'7e b'*'nce 1i** be up&'te&
on ' pror'te& b'sis.
Accumu*'tion$6 &'ys per ye'r3 up to m'<imum 56 &'ys
nc's)ment Cri7i*ege *e'7e c'n be enc's)e& on*y 't t)e time of retirement
or resign'tion. #)e *e'7e b'*'nce up to m'<imum of 56 &'ys
1i** be enc's)e& 's per t)e b'sic s'*'ry 't t)e time of
enc's)ment 'n& '** e<cess *e'7e 1i** *'pse.
7. Pa%ern&%1 2ea'e !PL#
Scope For '** m'*e emp*oyees. !e'7e t'(en for t)e birt) of first t1o
c)i*&ren.
*igibi*ity #1o 1or(ing &'ys
Accumu*'tion"ot 'pp*ic'b*e
nc's)ment "ot 'pp*ic'b*e

Lea'e 02ann&n9 an( a002&*a%&)n
SSBI encour'ges emp*oyees to p*'n t)eir *e'7e c'refu**y in or&er to meet t)e nee&s of t)e
emp*oyees 'n& t)e comp'ny. Sou must fi** out t)e !e'7e App*ic'tion Form 1)en re?uesting time
off3 1)ic) must be signe& 'n& 'ppro7e& by your m'n'gerAsuper7isor. mp*oyees 're encour'ge& to
'cti7e*y communic'te *e'7e p*'ns 'n& &et'i*s to t)eir super7isors so t)'t '** te'm members c'n
'&Dust t)eir sc)e&u*es. #)e comp'ny 1i** try 't '** times to meet 'ny re'son'b*e re?uests for *e'7e;
)o1e7er consi&er'tion of your co91or(ers 'n& 'ny e<isting responsibi*ity is essenti'*.
!e'7e of '** types '7'i*e& in t)e mont) must be up&'te& on t)e *e'7e c'r&. #i** *e'7e c'r&s 're
pro7i&e&3 'n e9m'i* 1it) t)e 'ppro7'* of *e'7e by t)e imme&i'te m'n'ger must be sent to HR 'n&
C'yro** for e'sy tr'c(ing 'n& up&'tion in mont)*y p'yro**.
Lea'e 7e%6een h)2&(a1+
GIDC RAJJU SHROFF ROF! I"S#I#U# OF .+%A"AG %A"# SUDIS
.+

#)e comp'ny &oes not permit its emp*oyees to t'(e *e'7e prefi<e& 'n& suffi<e& to t)e )o*i&'ys.
For inst'nce if ' )o*i&'y is on Fri&'y 'n& ' 1ee(*y off on Sun&'y3 t)en t)e emp*oyee is not
suppose& to t'(e *e'7e on S'tur&'y. In c'se t)e emp*oyee t'(es *e'7e on S'tur&'y3 t)en '** t)ree
&'ys3 ie Fri&'y3 S'tur&'y 'n& Sun&'y3 1i** be consi&ere& 's *e'7e.
Lea'e e4%en+&)n+

#)e comp'ny &oes not encour'ge e<tensions of *e'7e. #)ey 1i** be gr'nte& on*y if t)e emp*oyee
communic'tes suc) 'n intention in 1riting on*y in unforeseen circumst'nces 't t)e &iscretion of t)e
m'n'gement.
Lea'e 6&%h)5% 0a1
Any *e'7e '7'i*e& in e<cess of t)e entit*ement 1i** be tre'te& 's *e'7e 1it)out p'y 'n&
proportion'te s'*'ry 1i** be &e&ucte& for t)e s'me. #)e comp'ny &oes not encour'ge emp*oyees to
t'(e *e'7e 1it)out p'y. #)e *e'7e 1it)out p'y c'n be 1'i7e& off on*y in unforeseen circumst'nces
't t)e &iscretion of t)e m'n'gement
GIDC RAJJU SHROFF ROF! I"S#I#U# OF ./%A"AG %A"# SUDIS
./

Sharekhan 0)2&*1
:e 't S)'re()'n 1ou*& *i(e to contribute to1'r&s en)'ncing our emp*oyees0
'n& t)eir f'mi*ies0 *ife by e<ten&ing benefits t)'t 're of re*e7'nce 'n&
import'nce to our emp*oyees. In t)is c)'pter3 1e )'7e summ'rise& t)e
benefits t)'t 're '7'i*'b*e to our emp*oyees.
I. E302)1ee Marr&a9e G&8% P)2&*1
:e be*ie7e t)'t our emp*oyees 're p'rt of ' *'rge S)'re()'n f'mi*y. Just 's emp*oyees 're 'n
integr'* p'rt of '** t)e &e7e*opments 'n& ce*ebr'tions of S)'re()'n3 1e too 1ou*& *i(e to be ' p'rt
of one of t)e most import'nt e7ent in t)e *ife of our emp*oyee^%'rri'ge.
#)e mp*oyee %'rri'ge Gift Co*icy is instrument'* in s)o1ering our best 1is)es on t)e ne1*y
m'rrie& coup*e.
A002&*a7&2&%1
A** sing*e emp*oyees of S)'re()'n.
Pr)*e++
#)e process 'n& '&ministr'tion of t)e po*icy is &et'i*e& be*o1J
#)e m'n'ger on receipt of t)e in7it'tion c'r& 1i** for1'r& t)e s'me to t)e Accounts
&ep'rtment for necess'ry 'ction.
In c'se t)e m'rri'ge is bet1een t1o emp*oyees3 bot) 1i** recei7e t)e gift in&i7i&u'**y.
E302)1ee 3arr&a9e 9&8%
#)e emp*oyee 1i** be gi7en ' to(en gift of Rs+36,,A9 by c)e?ue on t)e 1e&&ing &'y. #)is gift 1i**
be )'n&e& o7er to t)e coup*e by )isA)er imme&i'te m'n'gerAsuper7isor 1it) best comp*iments.
II. Me(&;*2a&3 P)2&*1
GIDC RAJJU SHROFF ROF! I"S#I#U# OF .5%A"AG %A"# SUDIS
.5

S)'re()'n pro7i&es %e&i9c*i'm co7er to '** emp*oyees. #)e &et'i*e& inform'tion on t)e po*icy3
re*e7'nt processes 'n& t)e #CA (#)ir& C'rty A&ministr'tor) 'ppointe& by t)e comp'ny is 'tt'c)e&
in t)e 'nne<ure.
C)'era9e an( 2&3&%+
#)e Comp'ny be'rs t)e cost of insur'nce premium for '** emp*oyees 's per fo**o1ing *imitsJ
%ont)*y C#C Co7er'ge
Up to Rs+63,,, per mont) Rs$,,3,,,
Abo7e Rs+63,,, per mont) Rs$6,3,,,
mp*oyees )'7e t)e option of co7ering t)eir &epen&ents un&er t)is po*icy for 'ny 'mount not
e<cee&ing t)e *imit for t)e emp*oyee; )o1e7er t)e cost of t)e s'me 1i** )'7e to be borne by
in&i7i&u'* emp*oyees.

III. Ter3 In+5ran*e P)2&*1
S)'re()'n pro7i&es term insur'nce co7er (&e't) in c'se) to '** emp*oyees. #)e &et'i*s of t)e
co7er'ge 're 's mentione& be*o1J
Annu'* C#C Co7er'ge
Up to Rs$,,3,,, Rs+,,3,,,
Up to Rs/,,3,,, Rs6,,3,,,
Up to Rs.,,3,,, Rs$3,,,3,,,
Up to Rs$36,,3,,, Rs+3,,,3,,,
Abo7e Rs$36,,3,,, Rs53,,,3,,,
IV.Tran+8er P)2&*1
.6

#r'nsfers become essenti'* in t)e sp'te of gro1ing business re?uirements. #o meet t)em
'ppropri'te*y3 t)e Comp'ny m'y &eci&e to tr'nsfer 'ny emp*oyee to 'ny *oc'tion b'se& on t)e
business re?uirements. :it) t)e purpose to f'ci*it'te t)e s'me3 it is essenti'* to )'7e ' tr'nsfer
po*icy in p*'ce. It is necess'ry for t)e comp'ny to 'ssist emp*oyees in t)is process.
A** emp*oyees of t)e org'ni4'tion 1i** be co7ere& un&er t)is po*icy. #)e emp*oyee 1i** be
communic'te& in 1riting reg'r&ing )is A )er tr'nsfer 'n& ot)er re*e7'nt inform'tion i.e. reporting
'ut)ority3 1or( responsibi*ities etc
M)(e )8 %ra'e2 8)r +e28 an( 8a3&21
F're for se*f3 spouse 'n& t)e comp'ny on pro&ucing t)e tic(ets 1i** reimburse t1o &epen&ent
c)i*&ren 't 'ctu'*s. #)e mo&e of tr'7e* rem'ins t)e s'me 's per emp*oyees@ e*igibi*ity in t)e #r'7e*
Co*icy.
Pre;%ran+8er e40en+e+
#)e comp'ny 1i** reimburse $ pre9tr'nsfer trip for se*f 'n& spouse3 not e<cee&ing 6 &'ys in tot'*3 to
t)e tr'nsferre& city for t)e emp*oyee on 'ccount of )ousing3 sc)oo*ing etc. #r'7e* 'n& Hote*
e<penses 1i** be 's per t)e #r'7e* po*icy.
P)+%;%ran+8er e40en+e+
#)e emp*oyee 'n& )is A )er f'mi*y 1i** be e*igib*e for Hote* st'y 't t)e ne1 *oc'tion 's per
e*igibi*ity un&er t)e #r'7e* po*icy. #)e tot'* perio& of )ote* st'y post tr'nsfer 1it) f'mi*y 1i** not
e<cee& 6 &'ys.
Tran+0)r% )8 G))(+
#)e emp*oyee 1i** be e*igib*e for reimbursement of cost of one truc(*o'& of person'* be*onging on
'ctu'* from )is current *oc'tion to t)e tr'nsferre& *oc'tion. Ho1e7er3 t)e emp*oyee is re?uire& to
submit ?uot'tions from minimum t1o tr'nsporters 'n& nee&s to )'7e pre9s'nction for t)e e<pense.
#r'nsport '**o1'nce 1i** inc*u&e p'c(ing3 *o'&ing 'n& un*o'&ing c)'rges 'n& insur'nce premium.
#)e insur'nce premium s)ou*& not e<cee& Rs.$,3,,,.
In c'se of function )e'&s A br'nc) )e'&s A %'n'gers3 t)e comp'ny 1i** reimburse '&&ition'* cost of
tr'nsport'tion of one c'r on 'ctu'*. Ho1e7er3 t)e emp*oyee is re?uire& to submit estim'te& cost 'n&
nee&s to )'7e pre9s'nction for t)e e<pense
Te30)rar1 Tran+8er
.8

If 'n emp*oyee is &epute& to 'ny ot)er *oc'tionA office for ' minimum perio& of one mont) 'n& not
e<cee&ing si< mont)s3 it 1i** be consi&ere& ' tempor'ry tr'nsfer.
An emp*oyee on tempor'ry tr'nsfer 1i** be e*igib*e for ' mont)*y Deput'tion A**o1'nce e?ui7'*ent
to +6K of )is current C#C 'n& t)e s'me 1i** be p'i& '*ong 1it) t)e mont)*y s'*'ry.
Any tempor'ry tr'nsfer e<cee&ing si< mont)s 1i** be consi&ere& 's perm'nent tr'nsfer 'n& '**
benefits 'ssoci'te& 1it) tempor'ry tr'nsfer 1i** ce'se to be 'pp*ic'b*e.
Ter3 )8 E302)1ee
Pr)7a%&)n
A** regu*'r fu**9time emp*oyees 1i** un&ergo ' si<9mont) prob'tion perio& 's specifie& in t)e
'ppointment *etter. #)e prob'tion perio& )e*ps t)e org'ni4'tion to 'ssess t)e emp*oyee0s on9t)e9Dob
perform'nce 'n& )is cu*tur'* fit 1it) t)e org'ni4'tion.
it)er p'rty m'y gi7e $6 &'ys0 form'* notice of sep'r'tion of emp*oyment 't 'ny time &uring
prob'tion.
C)n8&r3a%&)n
Comp*etion of t)e prob'tion'ry perio& s)ou*& not be construe& 's confirm'tion ti** suc) time t)'t
t)e confirm'tion re7ie1 process is comp*ete&.
#)e emp*oyee0s imme&i'te superior 't t)e conc*usion of t)e prob'tion perio& s)'** con&uct ' form'*
perform'nce re7ie1 for confirm'tion. #)e perform'nce re7ie1 s)'** inc*u&e se*f9fee&b'c(3
perform'nce re7ie1 by t)e m'n'gers 1it) specific suggestions for impro7ement.
An offici'* *etter 1i** be issue& in c'se of confirm'tion. In c'se t)e perform'nce is not s'tisf'ctory3
t)e prob'tion perio& c'n be e<ten&e& for t)ree mont)s. #)e confirm'tion 'ppr'is'* form't is
'tt'c)e& in t)e 'nne<ure.
it)er p'rty m'y gi7e ' minimum of /, &'ys0 form'* notice of sep'r'tion of emp*oyment 't 'ny
time 'fter confirm'tion.
Per+)na2 C)n(5*%
GIDC RAJJU SHROFF ROF! I"S#I#U# OF .=%A"AG %A"# SUDIS
.=

S)'re()'n@s business is &epen&ent on t)ere reput'tion 'n& t)e *e7e* of trust t)'t is repose& in us by
our customers. Ho1e7er t)is c'**s for ' 7ery )ig) inc*in'tion to1'r&s '&)erence to regu*'tions 'n&
being et)ic'* in '** our &e'*ings. #)ey be*ie7e e'c) 'n& e7ery emp*oyee0s be)'7iour nee&s to ref*ect
our p)i*osop)y. #)e onus is on e'c) 'n& e7ery member to refr'in from 'ny i**eg'*3 &is)onest or
unet)ic'* con&uct 'n& report to t)e m'n'gement 'ny inci&ents of m'*icious n'ture occurring 'roun&
)im.
Employee responsibilities
#)e Dob perform'nce 'n& person'* con&uct of e'c) emp*oyee &irect*y 'ffect t)e im'ge 'n&
reput'tion of S)'re()'n. mp*oyees 're re?uire& to obser7e t)e fo**o1ing gui&e*ines to m'int'in
et)ic'* st'n&'r&sJ
nsure t)ere is no t)eft3 embe44*ement3 mis'ppropri'tion of fun&s3 f'*se entries in 'ny boo(
report or st'tement 1it) intent
#o &efr'u& 'n& f'*sify t)e e<pense 'ccounts is ' c'use for imme&i'te &ismiss'*.
It is t)e responsibi*ity of e'c) emp*oyee to report to t)e m'n'gement 'ny (no1*e&ge t)'t '
crime )'s been or 1i** be committe&. "ot reporting is ' c'use for imme&i'te &ismiss'*.
A c*ient0s confi&enti'* inform'tion must not be &i7u*ge& to t)ir& p'rties e<cept 1it) proper
'ut)ority from t)e c*ient 'n& t)e imme&i'te superior.
An emp*oyee 1i** not &iscuss nor enter into 'greements 1it) competitors concerning
S)'re()'n0s &e'*ings3 pricesAser7ices etc.
S)'re()'n0s p)ysic'* properties3 inform'tion 'n& inf*uence 1i** not be use& for t)e pri7'te
'&7'nt'ge of 'ny emp*oyee or ot)er person.
Outsi&e 'cti7ities must be 'ccept'b*e 'n& comp'tib*e 1it) t)e emp*oyee0s i&entity 1it)
S)'re()'n. #)is inc*u&es t)e pro)ibition of business 'n& person'* in7estments3 'n& outsi&e
emp*oyment3 'ny of 1)ic) 1ou*& cre'te ' conf*ict of interest.
mp*oyees must not 'ccept from or gi7e to c*ients 'n& supp*iers person'* gifts; or 'ccept
be?uests3 commissions or fees of 'ny n'ture from c*ients; or borro1 from c*ients or
supp*iers.
OPERATION DEPARTMENT
GIDC RAJJU SHROFF ROF! I"S#I#U# OF ..%A"AG %A"# SUDIS
..

.2

Inputs
#)ere 're m'ny inputs to t)e pro&uction E oper'tions 7i4.3 *'n& E bui*&ings3 m'c)inery
E e?uipments3 furniture E fi<tures3 emp*oyees3 tec)no*ogy3 c'pit'* (in7este& by
promoters E &eposite& by t)e customers) 'n& t)e most import'nt input3 i.e.3 m'n'gement
functions c'rrie& out 't n'tion'*3 region'* 'n& br'nc) *e7e* in S)'re()'n.
Conversion process
#)e m'in 'im of it is to m'(e profit 1it) customer s'tisf'ction. #)e con7ersion of Inputs
1or(s 's t)e S)'re()'n e'rn bro(er'ge from t)e customers. #)e profits 're gener'te&
from getting ' )ig)er return on t)e in7este& 'mount of money t)'n t)e 'mount p'y'b*e to
t)e customers. #)e process is f'ci*it'te& by ' centr'*i4e& computer system in 1)ic) t)e
&'t' is store& 'n& reco7ere& for t)e 1)o*e I"DIA 'n& it is )'7ing t)e CCU 't t)e HAO in
%umb'i. S)'re()'n is regu*'ting t)e bro(er'ge r'tes '** o7er In&i' by (eep 1'tc) on
e'c) tr'ns'ction &one from t)e br'nc) office. #)e &'t' of ' customer 1i** be store& in t)e
centr'* computer 'n& '** f'ci*ities suc) 's bi**s3 cre&itA&ebit reports etc. 're pro7i&e& by
t)'t computer to '** customers on9*ine on t)e Internet.
#)e con7ersion process is '*so f'ci*it'te& by some '&Dustments to t)e inputs 'n& t)en t)e
r'n&om f*uctu'tions 're '*so )'n&*e& in t)e process 'n& *'st*y t)e monitoring of t)e
process is &one 'n& ' fee&b'c( is gi7en to &o t)e '&Dustments for t)e process 's in&ic'te&
in t)e figure gi7en.
Outputs
Outputs 're t)ose ser7ices gener'te& by S)'re()'n 1it) t)e )e*p of t)e inputs 'n& using
t)e con7ersion process. #)ese ser7ices 're 's *iste& in t)e figure 'bo7e.
#'b*e S)'re()'n.+
2,

Oper'tions str'tegies 're imp*emente& in S)'re()'n 's s)o1n in t)e c)'rt gi7en
'bo7e 'n& t)e m'in points of consi&er'tion 're fficiency3 Depen&'bi*ity3 \u'*ity
'n& F*e<ibi*ity.
#)e points &em'n& ' f'ci*ity mission t)'t is m'&e up of process3 c'p'city3
f'ci*ities3 7ertic'* integr'tion3 'n& infr'structure f'ci*ities pro7i&e& to get t)e &esire&
outputs 's per t)e p*'n.
O0era%&)n+ S%ra%e91 a% Sharekhan
2$

#)e m'in 'im of t)e oper'tions str'tegy 't S)'re()'n is t)'t t)e efficiency of
t)e
org'ni4'tion 'n& )ig) *e7e* of it is &esire& outputs 1it) *o1 costs3 i.e.3 pro&ucti7ity 1it)
effecti7eness. \u'*ity s)ou*& be )ig) 'n& consistent in &e*i7ering ser7ices; F*e<ibi*ity is
re*'te& 1it) f'st intro&uction of ne1 ser7ices 'n& pro7i&ing ' 1i&e r'nge to se*ect 'n option
to t)e customer. #)e process of oper'tions3 c'p'cityA'bi*ity of t)e org'ni4'tion3 competiti7e
'&7'nt'ges3 7ertic'* integr'tion 'n& t)e infr'structure cre'te& by t)e firm f'ci*it'te t)is.
S)'re()'n p*'ns t)e str'tegies to get ' 1or(ing p*'n from it 'n& t)e p*'nning is
&one from top9to9bottom *e7e*3 i.e.3 n'tion'* *e7e*3 region'* *e7e*3 &i7ision'* *e7e* 'n& t)e
br'nc) *e7e* p*'nning is c'rrie& out by t)e m'n'gers.
In t)is 1'y3 t)e Oper'tions 're m'n'ge& 1it) t)e best efforts in ' &irection t)'t is to
f'ci*it'te future p*'ns by 'c)ie7ing success in time 'n& cre'te mi*estones in t)e in&ustry by
m'(ing t)e comp'ny &ri7en by 7'*ues 'n& e<ce**ence.
2+

TRANSACTION CYCLE:
A person )o*&ing 'ssets (SecuritiesAFun&s)3 eit)er to meet )is *i?ui&ity nee&s or to
res)uff*e )is )o*&ings in response to c)'nges in )is perception 'bout ris( 'n& return of t)e
'ssets3 &eci&es to buy or se** t)e securities. He se*ects ' bro(er 'n& instructs )im to p*'ce
buyAse** or&er on 'n e<c)'nge. #)e or&er is con7erte& to ' tr'&e 's soon 's it fin&s '
m'tc)ing se**Abuy or&er. At t)e en& of t)e tr'&e cyc*e3 t)e tr'&es 're nette& to &etermine
t)e ob*ig'tions of t)e tr'&ing member@s securitiesAfun&s 's per sett*ement cyc*e.
-uyerAse**er &e*i7ers fun&sA securities 'n& recei7es securitiesAfun&s 'n& 'c?uires
o1ners)ip of t)e securities.
A securities tr'ns'ction cyc*e is presente& 'bo7e. Just bec'use of t)is #r'ns'ction cyc*e3
t)e 1)o*e business of Securities 'n& Stoc( -ro(ing )'s emerge&. An& 's 'n e<tension of
stoc( bro(ing3 t)e business of On*ine Stoc( bro(ingA On*ine #r'&ingA 9-ro(ing )'s
emerge&.
C*'cing Or&er
Sett*ement of
tr'&es
Decision to
tr'&e
#r'&e
<ecution
C*e'ring of
#r'&es
Fun&s or
Securities
#r'ns'ction
Cyc*e
#r'ns'ction
Cyc*e
2/

S599e+%&)n an( re*)33en(a%&)n
MARKETING
#)e suggeste& m'r(eting str'tegies to be fo**o1e& by S)'re()'n 't t)is point 're 's gi7en
be*o1J
O #)e mo&ific'tion of m'r(eting mi< i.e.3 t)e Cro&uct9Crice9C*'ce9Cromotion 'n&
for ser7ices '&&ition'* /Cs 7i4. Ceop*e3 Crocess 'n& C)ysic'* e7i&ence3 'ccor&ing to
t)e nee&s of t)e customers 'n& &e*i7er t)e m'<imum 7'*ue to t)e customers for 1)'t
t)ey p'y ' price i.e.3 impro7e o*& pro&ucts.
O #)e competitors 're trying to get customers 1it) better ser7ices t)'n S)'re()'n
7i4.3 'ccount opening process time3 *o1 &eposits 1it) gre'ter e<posure for
tr'&ing3 more focus on &e*i7ery9tr'&ers3 etc. so S)'re()'n must t'(e c're 1it)
&e7e*oping 'ttr'cti7e pro&ucts to ret'in o*& customers 'n& g'in ne1 customers 1it)
competiti7e prices 'n& ser7ices.
O #)e ne<t is to impro7e t)e ser7ice ?u'*ity 's 1e )'7e stu&ie& in m'r(eting t)'t
t)ere 're fi7e g'ps in &e*i7ering ser7ices to customers 'n& S)'re()'n nee&s to fi** up
t)ose g'ps3 's *iste& be*o1J
$. #)e g'p bet1een comp'ny0s perception 'bout t)e nee&s of customers 'n&
t)e e<pect'tions of t)e s'me.
+. #)e g'p bet1een comp'ny0s perception 'n& t)e imp*emente& ser7ice
?u'*ity specific'tion p*'n.
/. #)e g'p bet1een ser7ice ?u'*ity specific'tion p*'n 'n& )o1 it is &e*i7ere&
to t)e customers.
5. #)e g'p bet1een &e*i7ere& ser7ice 'n& t)e e<tern'* communic'tions &one
1it) t)e customers to promote it.
6. #)e g'p bet1een )o1 customers percei7e t)e ser7ice 'n& t)e e<pecte&
ser7ice t)'t is m'&e by :O% (1or& of mout)) communic'tions3 p'st
e<perience 'n& t)e comp'rison 'mong '** comp'nies offering it.
S)'re()'n nee&s to fi** up t)ese g'ps3 1)ic) 're tr'&ition'**y i&entifie& by -erry3 _eit) 'n&
C'rs)ur'm'n to impro7e t)e ?u'*ity of t)e ser7ices offere& by ' comp'ny.
25

PRODUCTION TO DERIVA TIVES
9.1. Introduction to derivatives
#)e emergence of t)e m'r(et for &eri7'ti7e pro&ucts3 most not'b*y for1'r&s3 futures 'n&
options3 c'n be tr'ce& b'c( to t)e 1i**ingness of ris(9'7erse economic 'gents to gu'r&
t)emse*7es 'g'inst uncert'inties 'rising out of f*uctu'tions in 'sset prices. -y t)eir 7ery
n'ture3 t)e fin'nci'* m'r(ets 're m'r(e& by ' 7ery )ig) &egree of 7o*'ti*ity. #)roug) t)e use
of &eri7'ti7e pro&ucts3 it is possib*e to p'rti'**y or fu**y tr'nsfer price ris(s by *oc(ing9in
'sset prices. As instruments of ris( m'n'gement3 t)ese gener'**y &o not inf*uence t)e
f*uctu'tions in t)e un&er*ying 'sset prices. Ho1e7er3 by *oc(ing9in 'sset prices3 &eri7'ti7e
pro&ucts minimi4e t)e imp'ct of f*uctu'tions in 'sset prices on t)e profit'bi*ity 'n& c's) f*o1
situ'tion of ris(9'7erse in7estors.
9.2. Derivatives Defined
Deri7'ti7e is ' pro&uct 1)ose 7'*ue is &eri7e& from t)e 7'*ue of one or more b'sic
7'ri'b*es3 c'**e& b'ses (un&er*ying 'sset3 in&e<3 or reference r'te)3 in ' contr'ctu'*
m'nner. #)e un&er*ying 'sset c'n be e?uity3 fore<3 commo&ity or 'ny ot)er 'sset. For
e<'mp*e3 1)e't f'rmers m'y 1is) to se** t)eir )'r7est 't ' future &'te to e*imin'te t)e ris(
of ' c)'nge in prices by t)'t &'te. Suc) ' tr'ns'ction is 'n e<'mp*e of ' &eri7'ti7e. #)e price
of t)is &eri7'ti7e is &ri7en by t)e spot price of 1)e't 1)ic) is t)e >un&er*ying>.
<'mp*e J9
A 7ery simp*e e<'mp*e of &eri7'ti7es is cur&3 1)ic) is &eri7'ti7e of mi*(. #)e price of cur&
&epen&s upon t)e price of mi*(3 1)ic) in turn &epen&s upon t)e &em'n&3 'n& supp*y of mi*(.
See it t)is 1'y. #)e price of Re*i'nce #rip*e Option Con7ertib*e Debentures (Re*i'nce
#OCD) use& to 7'ry 1it) t)e price of Re*i'nce s)'res. An& t)e price of #e*co 1'rr'nts
&epen&s upon t)e price of #e*co s)'res. Do Americ'n &epository receiptsA g*ob'*
&epository receipts of ICICI3 S'ty'm 'n& Infosys tr'&e& on stoc( e<c)'nges in t)e USA 'n&
ng*'n& )'7e t)eir o1n 7'*uesT "o. #)ey &r'1 t)eir price from t)e un&er*ying
26

S)'res tr'&e& in In&i'. Consi&er )o1 t)e 7'*ue of mutu'* fun& units c)'nges on ' &'y9
to&'y b'sis. Don0t mutu'* fun& units &r'1 t)eir 7'*ue from t)e 7'*ue of t)e portfo*io
of securities un&er t)e sc)emesT Aren0t t)ese e<'mp*es of &eri7'ti7esT Ses3 t)ese 're.
An& you (no1 1)'t3 t)ese e<'mp*es pro7e t)'t &eri7'ti7es 're not so ne1 to us. "ifty
options 'n& futures3 Re*i'nce futures 'n& options3 S'ty'm futures 'n& options etc 're '**
e<'mp*es of &eri7'ti7es. Futures 'n& options 're t)e most common 'n& popu*'r form of
&eri7'ti7es. In t)e In&i'n conte<t t)e Securities Contr'cts (Regu*'tion) Act3 $268
(SC(R)A) &efines >&eri7'ti7e> to inc*u&e 9
$. A security &eri7e& from ' &ebt instrument3 s)'re3 *o'n 1)et)er secure& or
unsecure&3
ris( instrument or contr'ct for &ifferences or 'ny ot)er form of security.
+. A contr'ct3 1)ic) &eri7es its 7'*ue from t)e prices3 or in&e< of prices3 of
un&er*ying
securities.
Deri7'ti7es 're securities un&er t)e SC (R) A 'n& )ence3 t)e regu*'tory fr'me1or(
un&er t)e SC (R) A go7erns t)e tr'&e in &eri7'ti7es.
9.3. History of Derivatives
#)e &eri7'ti7es m'r(ets )'s e<iste& for centuries 's ' resu*t of t)e nee& for bot) users
'n& pro&ucers of n'tur'* resources to )e&ge 'g'inst price f*uctu'tions in t)e
un&er*ying commo&ities. A*t)oug) tr'&ing in 'gricu*tur'* 'n& ot)er commo&ities
)'s been t)e &ri7ing force be)in& t)e &e7e*opment of &eri7'ti7es e<c)'nges3 t)e
&em'n& for pro&ucts b'se& on fin'nci'* instruments 9 suc) 's bon&3 currencies3 stoc(s
'n& stoc( in&ices^)'7e no1 f'r outstrippe& t)'t for t)e commo&ities contr'cts.
In&i' )'s been tr'&ing &eri7'ti7es contr'cts in si*7er3 go*&3 spices3 coffee3 cotton 'n&
oi* etc for &ec'&es in t)e gr'y m'r(et. #r'&ing &eri7'ti7es contr'cts in org'ni4e& m'r(et
1's *eg'* before %or'rDi Des'i0s go7ernment b'nne& for1'r& contr'cts. Deri7'ti7es on
stoc(s 1ere tr'&e& in t)e form of Teji an( Mandi in unorg'ni4e& m'r(ets. Recent*y
futures contr'ct in 7'rious commo&ities 1's '**o1e& to tr'&e on e<c)'nges. In June
+,,,3 "'tion'* Stoc( <c)'nge 'n& -omb'y Stoc( <c)'nge st'rte& tr'&ing in
futures on Sense< 'n& "ifty. Options tr'&ing on Sense< 'n& "ifty commence& in
June +,,$. Pery soon t)ere'fter tr'&ing beg'n on options 'n& futures in /$
prominent stoc(s in t)e mont) of Ju*y 'n& "o7ember respecti7e*y. #)e m'r(et *ots
(eeps on c)'nging from time to time. #)e minimum ?u'ntity you c'n tr'&e in is one
m'r(et *ot. #)e m'r(et *ot *ist up to +=A,6A+,,5 for &ifferent stoc(sAin&e< is 's
fo**o1s
28

J
In+%r53en% Na3e N). )8 Share+ &n One 2)%
$. "ifty future 'n& option (+,,)
+. Sense< future (6,)
/. Sense< options ($,,)
5. ACC ($6,,)
6. An&)r'-'n( (58,,)
8. Ar7in&%i** (5/,,)
=. -'D'D Auto (5,,)
.. -'n( of In&i' (/.,,)
2. -'n(of-'ro&' ($5,,)
$,. -! (66,)
$$. -)'r't He'7y *ectric'*s (8,,)
$+. -)'r't Cetro*eum Corpor'tion (66,)
$/. -SS (66,)
$5. C'n'r'-'n( ($8,,)
$6. Cip*' ($,,,)
$8. Dr Re&&y0 s !'bor'tories (5,,)
$=. Gr'sim In&ustries (/6,)
$.. GAI! ($6,,)
$2. GuD'r't AmbuD' Cement ($$,,)
+,. HC!#ec) ($/,,)
+$.HDFC (8,,)
++. HDFC -'n( (.,,)
+/. Hero Hon&' (5,,)
+5. Hin&'*co In&ustries (/,,)
+6. Hin&ust'n !e7er (+,,,)
+8. Hin&ust'n Cetro*eum Corpor'tion (86,)
+=. ICICI -'n( ($5,,)
+..$9F*e< (/,,)
2=

+2. Infosys #ec)no*ogies (6,)
/,. ICC! ($$,,)
/$. In&i'n Oi* Corpor'tion (8,,)
/+. I#C (/,,)
//. %')in&r' E %')in&r' (8+6)
/5. %'ruti U&yog !t&. (5,,)
/6. %'ste( ($8,,)
/8. %')'n'g'
r #e*ep)one "ig'm !t&. ($8,,)
/ =. "'tion'* A*uminium ($$6,)
/.. "U# ($6,,)
/2. O"GC (/,,)
5,. O-C ($+,,)
5$. CunD'b "'tion'* -'n( ($+,,)
5+. Co*'ris !'b ($5,,)
5/. R'nb'<y !'bor'tories (5,,)
55. Re*i'nce In&ustries (8,,)
56. S'ty'm Computers ($+,,)
58. St'te -'n( of In&i' (6,,)
5=. Syn&ic'te -'n( (=8,,)
5.. S)ipping Corpor'tion of In&i' ($8,,)
52. #'t' Co1er (.,,)
6,. #'t' #e'
(66,)
6$.#'t' %otors (.+6)
6+. #isco (2,,)
6/. Union -'n( (5+,,)
65. :ipro
(+,,)
66.C"FI# ($,,)
2.

Deri7'ti7e 's ' term conDures up 7isions of comp*e< numeric c'*cu*'tions3
specu*'ti7e &e'*ings 'n& comes 'cross 's 'n instrument 1)ic) is t)e prerog'ti7e of ' fe1
]sm'rt fin'nce profession'*s@. In re'*ity it is not so. In f'ct3 ' &eri7'ti7e tr'ns'ction )e*ps
co7er ris(3 1)ic) 1ou*& 'rise on t)e tr'&ing of securities on 1)ic) t)e &eri7'ti7e is b'se&
'n& ' sm'** in7estor c'n benefit immense*y. LA (er&'a%&'e +e*5r&%1 *an 7e (e8&ne( a+ a
+e*5r&%1 6h)+e 'a25e (e0en(+ )n %he 'a25e+ )8 )%her 5n(er21&n9 'ar&a72e+.M Ver1
)8%en %he 'ar&a72e+ 5n(er21&n9 %he (er&'a%&'e +e*5r&%&e+ are %he 0r&*e+ )8 %ra(e(
+e*5r&%&e+M
Der&'a%&'e+ an( 85%5re+ are 7a+&*a221 )8 > %10e+:
For1'r&s 'n& Futures
Options
S1'ps

9.4. Types of Derivatives
DRIPA#IPS
DRIPA#IPS
Options
Options
Futures
Futures
S1'ps
S1'ps
For1'r&s
For1'r&s
Commo&ity
Commo&ity
Security
Security
Interest R'te
Interest R'te
Currency
Currency
Cut
Cut
C'**
C'**
22

FOR,ARDS:
A 8)r6ar( *)n%ra*% &+ %he +&302e+% 3)(e )8 a (er&'a%&'e %ran+a*%&)n. I% &+ an
a9ree3en% %) 751 )r +e22 an a++e% !)8 a +0e*&8&e( K5an%&%1# a% a *er%a&n 85%5re %&3e 8)r
a *er%a&n 0r&*e. N) *a+h &+ e4*han9e( 6hen %he *)n%ra*% &+ en%ere( &n%).
I225+%ra%&)n: ; S)y'm 1'nts to buy ' #P3 1)ic) costs Rs $,3,,, but )e )'s no c's) to
buy it outrig)t. He c'n on*y buy it / mont)s )ence. He3 )o1e7er3 fe'rs t)'t prices of
te*e7isions 1i** rise / mont)s from no1. So in or&er to protect )imse*f from t)e rise in
prices S)y'm enters into ' contr'ct 1it) t)e #P &e'*er t)'t / mont)s from no1 )e 1i**
buy t)e #P for Rs $,3,,,. :)'t S)y'm is &oing is t)'t )e is *oc(ing t)e current price of '
#P for ' for1'r& contr'ct. #)e for1'r& contr'ct is sett*e& 't m'turity. #)e &e'*er 1i**
&e*i7er t)e 'sset to S)y'm 't t)e en& of t)ree mont)s 'n& S)y'm in turn 1i** p'y c's)
e?ui7'*ent to t)e #P price on &e*i7ery.
FUTURES:
I% &+ an a9ree3en% 7e%6een %6) 0ar%&e+ %) 751 )r +e22 an a++e% a% a *er%a&n %&3e &n %he
85%5re a% a *er%a&n 0r&*e %hr)59h e4*han9e %ra(e( *)n%ra*%+.
A Future represents t)e rig)t to buy or se** ' st'n&'r& ?u'ntity 'n& ?u'*ity of 'n 'sset or
security 't ' specifie& &'te 'n& price. Futures 're simi*'r to For1'r& Contr'cts3 but 're
st'n&'r&i4e& 'n& tr'&e& on 'n e<c)'nge3 'n& 're 7'*ue&3 or >Marke( %) Marke%M &'i*y.
#)e Mark&n9 %) Marke% pro7i&es bot) p'rties 1it) ' &'i*y 'ccounting of t)eir fin'nci'*
ob*ig'tions un&er t)e terms of t)e Future. Un*i(e For1'r& Contr'cts3 t)e counterp'rty to
' Futures contr'ct is t)e c*e'ring corpor'tion on t)e 'ppropri'te e<c)'nge. Futures often
're sett*e& in c's) or c's) e?ui7'*ents3 r't)er t)'n re?uiring p)ysic'* &e*i7ery of t)e
un&er*ying 'sset. C'rties to ' Futures contr'ct m'y buy or 1rite Options on Futures.
OPTIONS:
An )0%&)n &+ a *)n%ra*% 6h&*h 9&'e+ %he 751er %he r&9h% 75% n)% %he )72&9a%&)n %)
751 )r +e22 +hare+ )8 %he 5n(er21&n9 +e*5r&%1 a% a +0e*&8&* 0r&*e )n )r 7e8)re a +0e*&8&*
(a%e.
]Option@3 's t)e 1or& suggests3 is ' c)oice gi7en to t)e in7estor to eit)er )onor t)e
contr'ct; or if )e c)ooses not to 1'*( '1'y from t)e contr'ct. #)ere 're t1o (in&s of
optionsJ Ca22 O0%&)n+ an( P5% O0%&)n+.
A Ca22 O0%&)n is 'n option to buy ' stoc( 't ' specific price on or before ' cert'in &'te.
:)en you buy ' C'** option3 t)e price you p'y for it3 c'**e& t)e option premium3 secures
your rig)t to buy t)'t cert'in stoc( 't ' specifie& price c'**e& t)e stri(e price. If you
GIDC RAJJU SHROFF ROF! I"S#I#U# OF $,,%A"AG %A"# SUDIS
$,,

&eci&e not to use t)e option to buy t)e stoc(3 'n& you 're not ob*ig'te& to3 your on*y cost
is t)e )0%&)n 0re3&53.
P5% O0%&)n+ 're options to se** ' stoc( 't ' specific price on or before ' cert'in &'te. In
t)is 1'y3 Cut options 're *i(e insur'nce po*icies. :it) ' Cut Option3 you c'n >insure> '
stoc( by fi<ing ' se**ing price. If somet)ing )'ppens 1)ic) c'uses t)e stoc( price to f'**3
'n& t)us3 >&'m'ges> your 'sset3 you c'n e<ercise your option 'n& se** it 't its >insure&>
price *e7e*. If t)e price of your stoc( goes up3 'n& t)ere is no >&'m'ge3> t)en you &o not
nee& to use t)e insur'nce3 'n&3 once 'g'in3 your on*y cost is t)e premium.
#ec)nic'**y3 'n option is ' contr'ct bet1een t1o p'rties. #)e buyer recei7es ' pri7i*ege
for 1)ic) )e p'ys ' premium. #)e se**er 'ccepts 'n ob*ig'tion for 1)ic) )e recei7es '
fee.
CALL OPTIONS
C'** options gi7e t)e t'(er t)e rig)t3 but not t)e ob*ig'tion3 to buy t)e un&er*ying s)'res
't ' pre&etermine& price3 on or before ' pre&etermine& &'te.
I225+%ra%&)n: ; R'D purc)'ses $ S'ty'm Computer (SA#CO%) AUG $6, C'** 99Cremium
.
#)is contr'ct '**o1s R'D to buy $,, s)'res of SA#CO% 't Rs $6, per s)'re 't 'ny time
bet1een t)e current &'te 'n& t)e en& of ne<t August. For t)is pri7i*ege3 R'D p'ys ' fee of
Rs .,, (Rs eig)t ' s)'re for $,, s)'res).
#)e buyer of ' c'** )'s purc)'se& t)e rig)t to buy 'n& for t)'t )e p'ys ' premium.
"o1 *et us see )o1 one c'n profit from buying 'n option; S'm purc)'ses ' December
c'** option 't Rs 5, for ' premium of Rs $6. #)'t is )e )'s purc)'se& t)e rig)t to buy t)'t
s)'re for Rs 5, in December. If t)e stoc( rises 'bo7e Rs 66 (5,[$6) )e 1i** bre'( e7en
'n& )e 1i** st'rt m'(ing ' profit. Suppose t)e stoc( &oes not rise 'n& inste'& f'**s )e 1i**
c)oose not to e<ercise t)e option 'n& forego t)e premium of Rs $6 'n& t)us *imiting )is
*oss to Rs $6.
GIDC RAJJU SHROFF ROF! I"S#I#U# OF $,$%A"AG %A"# SUDIS
$,$

Call Options-Long & Short Positions
:)en you e<pect prices to rise3 t)en you t'(e ' *ong position by buying c'**s. Sou
're bu**is).
:)en you e<pect prices to f'**3 t)en you t'(e ' s)ort position by se**ing c'**s. Sou
're be'ris).

PUT OPTIONS
A P5% O0%&)n gi7es t)e )o*&er of t)e rig)t to se** ' specific number of s)'res of 'n
'gree& security 't ' fi<e& price for ' perio& of time.
I225+%ra%&)n:; R'D is of t)e 7ie1 t)'t t)e ' stoc( is o7erprice& 'n& 1i** f'** in future3 but
)e &oes not 1'nt to t'(e t)e ris( in t)e e7ent of price rising so purc)'ses ' put option 't
Rs =, on ]F@. -y purc)'sing t)e put option R'D )'s t)e rig)t to se** t)e stoc( 't Rs =, but
)e )'s to p'y ' fee of Rs $6 (premium).
So )e 1i** bre'(e7en on*y 'fter t)e stoc( f'**s be*o1 Rs 66 (=,9$6) 'n& 1i** st'rt m'(ing
profit if t)e stoc( f'**s be*o1 Rs 66.
Put Options-Long & Short Positions
:)en you e<pect prices to f'**3 t)en you t'(e ' *ong position by buying Cuts. Sou
're be'ris).
:)en you e<pect prices to rise3 t)en you t'(e ' s)ort position by se**ing Cuts. Sou
're bu**is).
GIDC RAJJU SHROFF ROF! I"S#I#U# OF $,+%A"AG %A"# SUDIS
$,+

CALL OPTIONS PUT OPTIONS
If you expect a fall in
price(Bearish)
Sh)r% L)n9
If you e<pect ' rise in price (-u**is)) L)n9 Sh)r%
GIDC RAJJU SHROFF ROF! I"S#I#U# OF $,/%A"AG %A"# SUDIS
$,/

METHODLOGY
Re+ear*h O7Ne*%&'e
#)e m'in obDecti7e of t)e stu&y is to 'n'*ysis t)e CUS#O%R -USI"G
CRFRA"C 'n& t)eir potenti'* m'r(et 'mong t)e peop*e of R'D(ot City.
SAMPLING DESIGN
S'mp*ing &esign is one of t)e most import'nt 'spect 1)ere t)e &esign must be
'ppropri'te in or&er to )'7e t)e &esire& resu*t. S'mp*ing &esign inc*u&es 7'rious 'spect
'n& t)ey 're 's fo**o1sJ
Sa302&n9 Area : RaNk)% *&%1
Sa302e P)052a%&)n : above 20,000
Sa302e S&He : 20

Me%h)(+ J
#)e met)o& use& in t)e rese'rc) (sur7ey) is of prob'bi*ity type 's 1e 're un'1're
'bout t)e resu*ts. It c'n be eit)er of t)e si&e. It is 're' of RoD(ot city un&er 1)ic) 1e )'7e
to con&uct t)e rese'rc).
#)e rese'rc) is b'se& on con7enience met)o& s. In 1)ic) 1e m'&e str't'
'ccor&ing to t)e senior 'n& Dunior stu&ents 'n& t)en r'n&om*y se*ect t)e s'mp*e.
ERROR
GIDC RAJJU SHROFF ROF! I"S#I#U# OF $,5%A"AG %A"# SUDIS
$,5

o Some of t)e respon&ents 1ere not gi7ing t)e proper 'ttention on t)e
?uestioner 'n& t)ey 1ere m'r(ing 1it)out re'&ing t)e ?uestions. So
from t)ese respon&ents 1e 1ere not 'b*e to get t)e proper 'n& 'ccur'te
&'t'.
A*t)oug) to minimi4e t)e error effect 1e )'7e remo7e& suc) type
of respon&ent@s respon&s 'n& not t'(en t)em in c'*cu*'tions.
o Some ?uestions 're re*'te& to e'c) ot)er so some error m'y occur &ue
to t)e &i7ersific'tion of t)e me'ning.
#o minimi4e t)e error 1e m'&e t)e ?uestionn'ire 's simp*e 's
possib*e 'n& '7oi& mu*tip*e ?uestions.
o Fe'r of conse?uences
#o minimi4e t)e error 1e ensure t)em to (eep t)eir i&entity in
confi&enti'*.

$,6

RESEARCH DESIGN:
Re+ear*h J Descripti7e E ObDecti7e
Da%a S)5r*e J Crim'ry &'t'
Re+ear*h Me%h)( J Sur7ey %et)o&
Re+ear*h Te*hn&K5e J \uestionn'ire
T10e )8
I5e+%&)nna&re J Structure&

T10e )8 I5e+%&)n+ J C*ose& E Open en&e&
\uestions
N) )8 I5e+%&)n+ J $+
P2a*e J R'D(ot city
Da%a C)22e*%&)n
#)e rese'rc) is con&ucte& 1it) t)e )e*p of ?uestionn'ire t)erefore t)e m'in
source of inform'tion is t)e response of t)e respon&ents 'n& t)is c'n be consi&ere& 's '
prim'ry met)o& of co**ecting t)e &'t'.
L&3&%a%&)n+
#)e *imit'tions of t)e stu&y 're 's fo**o1J
Per+)na2 B&a+:
In&i7i&u'*s m'y )'7e person'* bi's to1'r&s p'rticu*'r in7estment option so t)ey m'y not
gi7e correct inform'tion 'n& &ue to 1)ic) t)e conc*usion m'y be &eri7e&.
$,8

T&3e L&3&%:
#)e time &ur'tion gi7en for t)e rese'rc) is *ess.
Area:
#)e 're' 1's *imite& to R'D(ot City on*y3 so 1e c'nnot (no1 t)e &egree of t)e *iter'cy
outsi&e t)e city.
Sa302e S&He:
#)e *'st *imit'tion is S'mp*e Si4e3 1)ic) is of +6, on*y; &ue to 1)ic) 1e m'y
not get t)e proper resu*ts.
Conc!usion
%ost of t)e peop*e in R'D(ot city 're in7esting in fi<e& return instruments.
B5% %here are &n'e+%)r+ 6h) 5+e eK5&%1 a+ an &n'e+%3en% %))2.
#)ose peop*e 1)o 1'nt to in7est in &eri7'ti7e E commo&ity 're in7esting m'in*y
for re&ucing ris( 'n& t)ey consi&er t)em 's in7estment too*.
Ceop*e gener'**y 1'nt to t'(e tr'&ing &ecision in&epen&ent*y or un&er t)e
gui&'nce of frien& or 1e** (no1n Stoc( -ro(ing House.
!iter'ture 'n& Se*f <perience c'n be t'(en 's t)e best met)o& to
Import e&uc'tion 'bout &eri7'ti7e E commo&ities.
%ore t)'n 5,K of t)e respon&ents 're intereste& to in7est into t)e stoc( m'r(et.
GIDC RAJJU SHROFF ROF! I"S#I#U# OF $,=%A"AG %A"# SUDIS
$,=

Genera2 &n8)r3a%&)n
Gen(er
%'*e Fem'*e
+,, 6,
"ender
80%
20%
male
female
F&n(&n9 :;
From t)e rese'rc) con&ucte& I foun& t)'t t)ere 're .,K of t)e tot'* 1)o )'s fi**
?uestion 're m'*e. An& rem'ining 're fem'*e.
Re*)33en(a%&)n: ;
As per t)e resu*t 1e c'n s'y t)'t .,K of t)e tot'* 're m'*e 'n& intereste& 's 1e**
's in7esting in stoc( m'r(et.
GIDC RAJJU SHROFF ROF! I"S#I#U# OF $,.%A"AG %A"# SUDIS
$,.

A9e
+$9/6 /896, 6$986
$+, 5, +,
#$e
120
40
20
21-35
36-50
51-65
F&n(&n9: ;
#)ere 're 6,K peop*e 1)o be*ong to 'ge group of +$9/6 'n& more t)'n +6K 're
from /896, 'n& rem'ining 're t)e ot)er 'ge group.
Re*)33en(a%&)nJ 9
#)ese me'ns is most of t)e in7estor 're of young 'ge. So comp'ny s)ou*& focus
on t)is 'ge group.
$,2

In*)3e
6,3,,,9$*'c(s $*'c(s9+*'c(s Abo7e +*'c(s
$,, ./ 8=
Inco%e
40%
33%
27%
50,000-1lacks
1lacks-2lacks
aboove 2lacks
F&n(&n9 :;
From our rese'rc) it )'s been foun& t)'t t)ere 're 5,K peop*e in t)e income
group of $*'c( to +*'c(s 'n& ne'r*y +.K peop*e 're e'rning more t)'n +*'c(s 'n& t)e
re'ming 're *ess t)'n $*'c(s.
Re*)33en(a%&)n: ;
#)e resu*t s)o1 t)'t t)ere 're '*most =,K peop*e 1)ose income Rs. $ *'c( 'n&
'bo7e. So t)e comp'ny s)ou*& focus on t)is t1o income group bec'use t)ey 're position
in7est t)ere surp*us money in 7'rious in7estment p'ttern '7'i*'b*e in m'r(et.
GIDC RAJJU SHROFF ROF! I"S#I#U# OF $$,%A"AG %A"# SUDIS
$$,

O**50a%&)n
Crofession'* C7t. Firm -usinessmen Go7t. officer Ot)er
5, =6 66 8, +,
Occupation
40
75
55
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F&n(&n9: ;
A** most .,K of t)e tot'* 're 1or(ing 1it) eit)er in p7t. Firm or in go7t. firms or
&oing t)ere o1n business 'n& rem'ining +,K 're profession'* peop*e 'n& mig)t be
stu&ent '*so.
Re*)33en(a%&)n: ;
From t)e resu*t 1e c'n pre&ict t)'t peop*e 1or(ing 1it) Go7t. 1i** )'7e fie*&
income 'n& peop*e 1or(ing 1it) p7t. Firm 1i** be )'7ing )ig)er p'y sc'*e 'n&
businessm'n 1)o 're in one or 'not)er business 1i** be (no1ing t)e import'nt of ris( 's
1e** 's benefit t)'t c'n be enDoye& 'fter t'(ing ris(. So t)e comp'ny must concentr'te in
t)is t)ree group bec'use t)ey 1i** be potenti'* in7estor for tomorro1.
GIDC RAJJU SHROFF ROF! I"S#I#U# OF $$$%A"AG %A"# SUDIS
$$$

\.$ Do you in7est your surp*us money in s'7ing InstrumentT
Ses "o
$=+ =.
&'1
6'%
31%
(es
)o
F&n(&n9: ;
#)ere 're ne'r*y =,K peop*e t)'t 're $=+ out of +6, 're regu*'r*y in7esting in
7'rious in7esting option. An& t)e rem'ining 're not.
Re*)33en(a%&)n: ;
As per t)e resu*t 1e c'n s'y t)'t comp'ny )'s ' 1)o*e bunc) o peop*e 1)o
be*ie7e t)'t if t)ey in7est t)ere money in 'ny of t)e in7estment p'ttern3 it is going to
gro1 'n& in '&&ition to t)'t t)ey &o be*ie7e t)'t in7estment 're necess'ry to e'rn more
money3 so to t)ese peop*e if proper inform'tion is gi7en to t)em 'bout t)e comp'ny
pro&uct 'n& '*so 'bout s)'re m'r(et t)ey m'y in7est in s)'re m'r(et.
GIDC RAJJU SHROFF ROF! I"S#I#U# OF $$+%A"AG %A"# SUDIS
$$+

\.+ If SS3 :)ere &o you in7est your s'7ingT
F.D C.O Insur'nce %.F Go*& ?uity
$8. $$+ $$= =/ /+ 2.
&'2
168
117
73
32
47
36
112 '8
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F&n(&n9+:
Ceop*e mig)t be in7esting in more t)'n one in7estment option. Resu*t '*so s)o1s
simi*'r tren& bec'use t)ey 're peop*e 1)o m'y in7esting in b'n( FD or in e?uity or 'ny
ot)er combin'tion.
Re*)33en(a%&)n:
If 1e *oo( 't figure3 t)ere 're more peop*e in7esting b'n( FD 'n& post office
s'7ings3 1)ic) re7e'*s t)'t t)ese peop*e be*i7e in fi<e& return 't ' *o1er ris(3 but no1
&'ys t)ere 're incre'sing number of peop*e 1)o 're in7esting in insur'nce3 e?uity 'n& in
mutu'* fun&s. Sti** t)ere 're more peop*e 1)o 1'nt to )'7e fi<e& return on t)eir
in7estment so t)e comp'ny s)ou*& e<p*'in t)em 'bout t)e import'nce3 benefit if t)ey
in7est in stoc( m'r(et 'n& '*so t)e return of in7estment 1)ic) is going to be )ig)er in
stoc( m'r(et t)'n 'ny ot)er.
GIDC RAJJU SHROFF ROF! I"S#I#U# OF $$/%A"AG %A"# SUDIS
$$/

\./ :)ic) stoc( e<c)'nge 1ou*& you prefer to c'rry out your tr'ns'ctionT
-S "S %CF "CDF
$,+ 2, /6 /.
&.3
102
'0
35
38
0
20
40
60
80
100
120
"&/ )&/ -23 )2*/3
&eries1
F&n(&n9+:
Once t)ere 're m'ny options '7'i*'b*e for t)e peop*e for t)e in7estment purpose
'n& t)ere 're m'ny e<c)'nges for tr'&ing. Figure s)o1s t)'t most of t)e peop*e tr'&ing
1it) -S 'n& "S 'n& t)eir figure is ne'r*y 'bout $,, e'c) 1)i*e rem'ining prefer
%CF 'n& "CDF.
Re*)33en(a%&)n:
If 1e *oo( 't SHARBAH"3 it is pro7i&ing t)e f'ci*ity of in7esting in '** t)ese
e<c)'nges so t)e comp'ny s)ou*& '*so focus on %CF 's 1e** 's "CDF3 1)ic) 're
consi&ere& to be emerging m'r(ets 'n& its benefits to t)e peop*e 1)o 're in7esting in
ot)er options inc*u&ing stoc( m'r(ets so t)'t t)ey c'n incre'se t)eir business.
GIDC RAJJU SHROFF ROF! I"S#I#U# OF $$5%A"AG %A"# SUDIS
$$5

\.5 Ho1 &o you t'(en &ecision. If you 1'nt to tr'&e in stoc( or 'ny ot)er
in7estmentT
In&epen&ent*y -ro(er "e1s c)'nne*s "e1s p'per Internet #'< consu*t'nt
== $+/ 8+ 8+ 68 5,
&.4
77
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F&n(&n9+:
#)ere 're &ifferent me'ns of communic'tion to p'ss your mess'ge to t)e gener'*
peop*e. :it) t)e )e*p of t)ese me'ns3 comp'ny c'n m'r(et its pro&ucts. #)ere 're $+/
peop*e 1)o prefer bro(ing firm for t)eir &ecision m'(ing3 ne<t comes is t)e in&epen&ent
&ecision m'(ers3 == out of tot'* number. Ot)ers t'(e t)eir &ecision 1it) t)e )e*p of ne1s
C)'nne*3 ne1s p'per 's 1e** 's t'< consu*t'nt.
Re*)33en(a%&)n:
If t)e comp'ny 1'nts to incre'se t)eir customer b'se3 t)e m'r(eting of t)e
comp'ny@s pro&ucts s)ou*& be &one in 'n effecti7e m'nner so t)'t more 'n& more peop*e
come to t)e bro(ing firm for t)eir in7estment.
It s)ou*& '*so use ne1s c)'nne*3 ne1sp'per 'n& Internet me&ium for t)eir pro&uct
m'r(eting so t)'t t)ey )'7e more scope of e<p'n&ing t)eir business.
$$6

\.6 If you se*ect bro(er or 'gent t)'n 1)ic) bro(er comp'ny se*ects youT
S)'re ()'n ICICI 6p'is' %'r7'&i Bot'( security Ot)er
== =6 /6 // 8, /5
&.
77
75
35
33
60
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20
40
60
80
100
&%are
k%an
,2,2, 5paisa -arva.i 7oak
sec#ri1
+%er
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F&n(&n9+:
#)e resu*t s)o1s t)'t == peop*e out of t)e tot'* prefer S)'re()'n 's t)eir bro(er
'n& t)e s'me figure is for ICICI '*so. "e<t c)'**enger is Bot'( Security 1)ere +,K
peop*e prefer it to tr'&e 1it) it. Rem'ining 're 1it) ot)er comp'nies.
Re*)33en(a%&)n:
:e c'n see t)'t ICICI is our m'in competitor 1)ic) s'me number of peop*e
preferring it 'n& '*so BO#AB Security c*osing in be)in& t)e *e'&ers.
#)erefore in or&er to rem'in 't t)e top position3 S)'re()'n must pro7i&e its
e<isting customer better ser7ices3 7i'b*e '&7ises bec'use t)is 1i** incre'se t)eir f'it) in
S)'re()'n.
$$8

\.8 :)ic) sty*e 1ou*& you prefer most for t)e tr'&ing purposeT
On*ine Off*ine
$$= $//
&.(
47%
53%
+nline
+ffline
F&n(&n9: ;
#)e resu*t s)o1s t)'t t)e in $// peop*e m'in*y prefer most off*ine 'n& $$= peop*e
're preferre& on*ine.
Re*)33en(a%&)n: ;
#)ere 're more peop*e 1)o prefer off*ine tr'&ing 1)ic) on t)e ot)er )'n&
incre'sing comp'ny bur&en boo(s recor& 'n& form'*ity but t)erefore in or&er to re&uce
t)is bur&en t)e comp'ny s)ou*& focus on on*ine tr'&ing it s)ou*& )'7e e'sy oper'ting of
on*ine tr'&ing so t)e customer c'n e'sy oper'te it. An& '*so m'(e t)em un&erst'n& 'bout
t)e benefit of on*ine tr'&ing *i(e f'st processing3 t)e customer 1i** not )'7e to come
&o1n t)e off*ine c'n perform'nce )isA)er tr'ns'ction from 'ny1)ere.
GIDC RAJJU SHROFF ROF! I"S#I#U# OF $$=%A"AG %A"# SUDIS
$$=

\.= Accor&ing to you3 1)ic) me&ium is t)e most re*i'b*e for tr'&ingT
S.-.C Fr'nc)ises On*ine
$5/ /6 =+
&.)
57%
14%
2'%
&.".2
!ranc%ises
+nline
F&n(&n9: ;
:)i*e fin&ing out t)e me&ium 1)ic) peop*e consi&er t)e most re*i'b*e 1)i*e
tr'&ing. #)e respon&ents g'7e m'<imum 7ote to stoc( bro(ing comp'ny. !i(e s)'re ()'n
ICICI &irect3 Bot'( Street 'n& in numbers t)eir combine& s)'re 1i** be 'roun& 6=K
1)i*e t)e secon& c)oice 1's gi7en to on*ine 'n& fr'nc)ises 'n& its 5/K of t)e tot'*.
Re*)33en(a%&)n: ;
Ceop*e most*y tren& 1it) br'n&e& comp'ny *i(e s)'re ()'n3 ICICI 'n& t)eir r'tio
is '*most 6,K but sti** t)ere 're peop*e 1)o &o t)'t tr'ns'ction 1it) *oc'* comp'ny or
&oing it on*ine 's s)'re is '*so pro7i&ing on*ine ser7ice t)e comp'ny must m'(e t)em
un&erst'n& 'bout s)'re ()'n 'n& its pro&ucts so t)'t t)ey m'y tr'&e 1it) s)'re B')n in
ne'r future.
GIDC RAJJU SHROFF ROF! I"S#I#U# OF $$.%A"AG %A"# SUDIS
$$.

\.. "'me of 'ny + Stoc( -ro(ing Comp'nyT
#)is ?uestion 1's put in t)e \uestionn'ire to (no1 t)e customer@s min&set 'n&
1)ic) comp'ny t)ey (no1. #)is ?uestion 1i** gi7e i&e' 1)et)er t)ey 're (no1ing
S)'re()'n or not. #)e resu*t s)o1e& t)'t most of t)e peop*e in R'D(ot (no1 ICICI 7ery
1e** 'n& ne<t comes is S)'re()'n.
So t)is is ' positi7e sign for S)'re()'n bec'use one t's( is o7er for t)em 'n& no1
t)ey )'7e to con7ince t)ese peop*e to in7est 1it) S)'re()'n.
In&i' -u**s /
S)'re B)'n +
%'r1'&i 6
%oti*'* os1'* .
HDFC Securities =
ICICI Direct $
Bote( street 8
S(se 5
$$2

\.2 :)ic) of t)ese 're you '*re'&y in to&'yT
?uity FEO Commo&ity
$$+ 6+ .8
&.9
45%
21%
34%
/0#i1
!8+
2ommo.i1
F&n(&n9:
#)ere 're more peop*e 1)o 're '*re'&y in7esting in e?uity m'r(et 1it) ' 56K of
t)e tot'*. #)e rem'ining 're gi7ing preference to FEO 'n& Commo&ity.
Re*)33en(a%&)n:
#)erefore it me'ns t)ere 're m'ny peop*e 1)o in7est in stoc( m'r(ets 1)ere 's
rem'ining in commo&ity. -ut S)'re()'n is pro7i&ing f'ci*ity of tr'&ing in '** t)e
e<c)'nges so it is goo& for t)em. So if 1e see it is ' gre't opportunity for t)em 'n& t)ey
s)ou*& gr'b it 's e'r*y 's possib*e.
GIDC RAJJU SHROFF ROF! I"S#I#U# OF $+,%A"AG %A"# SUDIS
$+,

\.$, :)ic) of t)ese you 1ou*& you *i(e to be in for tr'&ingT
?uity FEO Commo&ity
2$ 86 $$5
&.10
34%
24%
42%
/0#i1
!8+
2ommo.i1
F&n(&n9+:
"o one c'n pre&ict t)e future bec'use it is uncert'in. #)is ?uestion 1's put in t)e
\uestionn'ire to (no1 in 1)ic) m'r(et t)ey 1i** in7est in future time3 bec'use it 1i**
gi7e i&e' 'bout t)e peop*e@s min&set. Resu*t s)o1e& t)'t t)ere 're incre'sing number of
peop*e 1)o 1i** in7est in commo&ities 's 1e** 's future 'n& options. In number it is
'roun& 6.K so it is goo& for t)e comp'ny.
Re*)33en(a%&)n:
#)e recommen&'tion c'n be gi7en to t)e comp'ny is t)'t t)e comp'ny must focus
on '** t)e pro&ucts 1)ic) 're offere& to its e<isting customers 's 1e** 's proper gui&'nce
must be gi7en to potenti'* customers to incre'se t)eir business.
A*so t)e in7estment in Commo&ity 'n& FEO is s'fe 's comp're& to stoc( m'r(ets
'n& t)e return is '*so goo& for t)e in7estors.
GIDC RAJJU SHROFF ROF! I"S#I#U# OF $+$%A"AG %A"# SUDIS
$+$

\.$$ :)ic) 're t)e constr'ints t)'t you mig)t consi&er 1)i*e in7estingT
Ris( t'(ing
'bi*ity Fun& f'ci*ity Return on in7t.
#ime
Dur'tion
Comp'ny in7t.
Cosition
8. =/ $+. 8+ 5.
&.11
68
73
128
62
48
0
50
100
150
9isk akin:
abili1
!#n. facili1 9e#rn on
inv.
5ime
*#raion
2ompan1
inv. Posiion
&eries1
F&n(&n9+:
#)is is prob'b*y t)e most import'nt ?uestion of t)e ?uestionn'ire3 t)e resu*t of
t)is ?uestion is t)'t most of t)e peop*e t)in(s of ROI (return on in7estment) bec'use it is
t)e most cruci'* constr'int. "e<t comes is t)e f'ci*ities gi7en to t)em un&er t)e fun&s 'n&
'*so t)e ris( t'(ing 'bi*ity. #)ere 're ot)er f'ctors '*so *i(e time &ur'tion of t)eir
in7estment 'n& Comp'ny reput'tion in t)e m'r(et.
Re*)33en(a%&)n:
As 1e s'1 it in t)e resu*ts t)'t most of t)e peop*e see 1)'t t)ey 1i** get in return
if t)ey &o in7estment in 'ny of t)e m'r(et. So t)e comp'ny must &o 'cti7ities 1)ic)
yie*&s m'<imum return so t)'t t)ey c'n fu*fi** t)eir customer@s &esires.
#)ey must pro7i&e '** t)e possib*e f'ci*ities to its customer so t)'t t)ey rem'in
1it) t)e comp'ny on*y 'n& '*so )e*p in e<p'n&ing t)eir business. "o1 ' &'ys peop*e
1'nt ser7ices '*so 'n& t)erefore it must be t)e m'in focus of t)e comp'ny bec'use if not
pro7i&e& to t)e peop*e3 t)ey 're sure*y going to *e'7e t)e comp'ny.
GIDC RAJJU SHROFF ROF! I"S#I#U# OF $++%A"AG %A"# SUDIS
$++

\.$+ Suggestion````````````````````````````````````````````````````````
Fin'**y o7er'** suggestion 1's 's(e& to t)e respon&ents to (no1 1)'t t)ey 1'nt
'n& if t)ey 're '*re'&y 1it) S)'re()'n t)en 1)'t c)'nges 're to be m'&e 'n& 1)et)er
t)ey 're s'tisfie& 1it) t)e ser7ices of t)e comp'nyT
#)e response got from t)em re7e'*s fo**o1ing pointsJ
$. Return on In7estment is must but t)e ris( '*so s)ou*& be minimum 't t)e s'me
time.
+. "o one *o7es to *oose its )'r& e'rne& money t)erefore it s)ou*& be in7este& in
s'fer p*'ce.
/. Ser7ices 're must for t)em 'n& t)erefore t)e comp'ny must '*so concentr'te on
t)is 'spect.
5. Goo& '&7isory ser7ices3 secrecy of t)e &'t' gi7en to t)e comp'ny 's 1e** 's e7ery
peop*e must be tre'te& 's t)ey '** 're e?u'* i.e. no bi'sness.
6. C)'rges of t)e ser7ices pro7i&e& to t)em s)ou*& be re'son'b*e 'n& 7i'b*e.
8. Fin'**y *'st but not t)e *e'st t)e comp'ny s)ou*& m'int'in goo& re*'tions 1it) t)e
peop*e to )'7e &e'* for ' *onger time perio&.
GIDC RAJJU SHROFF ROF! I"S#I#U# OF $+/%A"AG %A"# SUDIS
$+/

B&72&)9ra0h1
GIDC RAJJU SHROFF ROF! I"S#I#U# OF $+5%A"AG %A"# SUDIS
$+5

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