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A PROJECT REPORT

ON

SCOPE AND CURRENT SCENARIO OF ONLINE TRADING IN EQUITY MARKET

Submitted in Partial Fulfillment of MBA Batch 2010-2012

NORTHERN INDIA ENGINEERING COLLEGE

Submitted to: Mrs. Akansha (Faculty of MBA, NIEC)

Faculty guidance: Mr. Prakash Yadav (Faculty of MBA, NIEC)

Submitted by: PRITI SINGH MBA (FULL TIME) Batch 2010-2012

CERTIFICATE

ACKNOWLEDGEMENT
The research study was undertaken by me in partial fulfillment of my course. It has been a great pleasure having gone through as a trainee in Nirmal bang & Securities which is Indias well-known and starkly established retail brokerage firm.

I express my thanks to Dr. M.K. Rastogi (Head of MBA Department) and my faculty member Mrs. Akansha Maam of Babu Banarasi Das of Northern India Engineering College, Lucknow, for extending her support.

I cannot refrain myself from expressing my deep sense of gratitude to Mr. Rahul Anand (Area Sales Manager, Lucknow) for his esteemed guidance and inspirations. I am also heartily thankful to Manish Kanti Paul (Associate Vice President) and each and every member of the in Nirmal bang & Securities for being so co-operative and helpful.

(Priti Singh)

PREFACE
Finance is the lifeblood of a company or firm. Finance is an orderly and insightful process for thinking about and planning for wealth maximization and maximum utilization of resources. The process starts with opening of company in the market place. It is a dynamic process. The finance manager uses research to identify opportunities and make financial policy for company so that company could perform better than its rivals. The finance process involves collection of funds from public or partners of the firm, proper utilization of funds in order to get benefit from the market, segmenting the market and choosing those target market that the company can satisfy in a superior way. The company must formulate a broad strategy and define a specific marketing mix and financial plan to optimize the long-run performance. The company builds in a set of control so that it evaluates results and operates as a learning organization constantly improving know-how. The successful completion of this project was a unique experience for me because by visiting many places and interacting with various persons, I have achieved a better knowledge about financial institute services especially in context of share market. The experience, which I gained from this project, was essential point of my career. This project is being submitted which contains detailed analysis of the research undertaken by me.

CONTENTS
ACKNOWLEDGEMENT......................................................................... PREFACE.............................................................................................. CERTIFICATE.......................................................................................... EXECUTIVE SUMMARY.......................................................................6 INTRODUCTION OF SHARE MARKET....................................................8 COMPANY PROFILE ..........................................................................15 SWOT ANALYSIS ............................................................................48 STOCK MARKET ............................................................51 MONEY MARKET AND CAPITAL MARKET .......................................62 HISTORY OF STOCK MARKET..............................................................72 IMPORTANCE OF STOCK MARKET.....................................................77 STOCK TRADING ................................................................................78 OBJECTIVE .......................................................................................87 RESEARCH METHODOLOGY ............................................................88 DATA ANALYSIS AND INTERPRETATION ..........................................95 FINDINGS .....................................................................................103 SUGGESTION ...................................................................................106 CONCLUSION .................................................................................107 LIMITATION OF STUDY109 BIBLIOGRAPHY ...................................................................................110 ANNEXURE ..111

Executive Summary
In the times of economic recession and global meltdown, when global stock indices are breaching their previous lows, stock prices are falling headlong making new lows every day, and business newspapers like The Economic Times are coming up with headlines like Saare Zameen Par on a regular basis, investors are really worried about their investment. The market volatility really effects the investors investment in a very large way. So, in this project I will try to find out how the market volatility effect the stock market where people invest and how the investors are really overcome this market volatility situation. The equity markets have been on a roller-coaster ride in the past few weeks. While India is relatively shielded from the sub-prime problem, its alignment to international markets and an increased presence of foreign investors, especially hedge funds, has made our stock markets move in tandem with global markets. Investors are looking for some other place to invest their hard-earned money. Commodity market is one such market which has provided a good opportunity to the investors to earn good returns. People are looking to diversify their portfolios to maximize their return on investment. Commodity market is one such place where some good money can be made. Commodity prices are on the rise and the further outlook for the boom in these markets is positive. Analysts expect the commodity market to provide hefty returns to the investors money. Investors at this time are facing the all-important question of how to insulate themselves from this heavy volatility? To answer this question, let us look at the options available for an equity investor. There are three main investment avenues for a person wishing to invest in equities. These are direct equities, equity mutual funds and portfolio management schemes. Many investors prefer direct equities, since it gives them the freedom to make their own decisions and adequate flexibility to manage their portfolios.

However, most investors are lost as to what and when they should buy or sell, and often rely on market tips, which can be dangerous. Others prefer mutual funds, especially through the systematic investment plan route, since it gives them professional fund management expertise and zero headache, but at a higher cost. So, in this project I will try to analyze that how the market volatility effect the Indian Stock market and the commodity market as well as the investors who invest in Stock market. Thus, I would like to cover certain aspects of the equity markets as a whole to find out whether it is a safe place to invest or not.

INTRODUCTION ABOUT TOPIC


As per the title suggest the project report has been prepared regarding the scope and current scenario of online trading in Indian equity market. Online trading was initiated by NSE in India and soon after the other exchanges also followed it. There was a major boom in yr. 2000 when lots of online trading companies came with a bang but only few were survived because of lack of computer knowledge and low internet penetration. There are two types of online trading companies one is the banking online trading companies and the other is non-banking trading. A few examples of banking online trading companies are HDFC securities, ICICI direct.com, UTI securities etc. On the other hand non banking trading companies are Nirmal Bang, sharekhan.com, Angel Broking, Reliance Money etc. Today online trading contributes are about 8-10%. It is continuously growing and has a huge market potential. A study was undertaken to determine the growth of various online trading companies in India in terms of trade done by them through online and services provided by them. Major findings indicates that out of a survey of 100 respondents it was seen that 77 investors prefer online trading because of few major factors such as time saving convenience, protection through Freudian brokers etc. although during my research project Ive seen that most of the respondents feel online trading, a secure way of investing into stock market still a few of them feel it unsafe and a bit complicated but they posses information about online trading. Today the online trading companies having cut-throat competition in our offering whose brokerage discounts lower margin money and zero balance accounts. Due to the rising education awareness and use of internet there is a huge potential for online trading in future and companies must come up with innovative offerings to capture the untapped market. A market is an environment that allows buyers and sellers to trade or exchange goods, services, and information. These interactions define demand and supply characteristics and are therefore fundamental to economies. A market can be defined as a place where any type

of trade takes place. Markets are dependent on two major participants buyers and sellers. Buyers and sellers typically trade goods, services and/or information. Historically, markets were physical meeting places where buyers and sellers gathered together to trade. Although physical markets are still vital, virtual marketplaces supported by IT networks such as the internet have become the largest and most liquid. Some markets are very competitive, with a number of vendors selling the same kinds of products or services. Conversely, some markets have low or no competition, particularly if the industry is protected by government legislation. The number of buyers and sellers involved will have a direct bearing on the price of the good or service to be sold, and has become known as the law of supply and demand. Where there are more sellers than buyers, the availability of supply will push down prices. If there are more buyers than sellers, the increased demand will push up prices.

Markets can appear spontaneously when there are goods or services to be exchanged, or they can be planned and regulated. Free markets operate under laissez-fare conditions, in that the government does not intervene in how the market operates. These markets may be distorted if a seller gains monopoly power by managing the majority of supply (or indeed if a buyer develops monophony power by managing demand). Governments or trade bodies often step in when such distortions undermine the smooth functioning of free markets. The currency markets are the largest continuously traded markets in the world. Twenty four hours a day, seven days a week, governments, banks, investors and consumers are buying and selling every currency, leading to massive money flows constantly changing hands. Stock markets have become highly complex markets that allow investors to buy shares in companies or in funds that aggregate companies or industries together. Most stock markets today are primarily electronic networks, although they often maintain a physical location for buyers, sellers and market makers to interact directly. Markets originally started as marketplaces usually in the centre of villages and towns, for the sale or barter of farm produce, clothing and tools. These kinds of street markets developed into a whole variety of consumer-oriented markets, such as specialist markets, shopping centers, supermarkets, or even virtual markets such as eBay. With the rising price of oil and food, commodity markets are once again under the spotlight. Commodities underpin economic activity. Commodity markets include: energy (oil, gas, coal and increasingly renewable energy sources such as biodiesel), soft commodities and grains (wheat, oat, corn, rice, soya beans, coffee, cocoa, sugar, cotton, frozen orange juice, etc), meat, and financial commodities such as bonds. Capital goods markets help businesses to buy durable goods to be used in industrial and manufacturing processes. A

number of services can also be associated with these goods. Transactions tend to be wholesale with large quantities of goods being transacted at low prices. Everyone has seen it and everyone is wishing if he should have buy stocks before this rally. Online Trading has existed amongst people for ages and with the arrival of the internet, online trading is the buzzword of the day. With the internet as a platform it is very easy to trade in the instruments of your choice as and when you want. Gone are the days when you actually had to make daily rounds of the stock exchange or go to your broker. Now you need not even make any calls but can simply trade as and when you want by the click of a mouse. There are several web sites online that allow you to trade on the stock exchange or the commodity exchange or any other case. These web sites that allow online trading act as brokerages and allow you to make your transactions using their web site. As any normal broker would do these web sites would also charge a small brokerage fee on your every transaction. These days people want to be trading on every thing like stocks trading, commodity trading, currency trading, futures trading as well as on mutual funds and derivatives. Hence there are ample opportunities for people to invest and trade in something that would give you the desired results. The forms of trading can be done though an online brokerage. A key to trading successfully is to have good knowledge about what is happening around you. Yes many people try and predict what the markets are going to do next but every future prediction is based on the present. And hence having the knowledge of what is happening and how is it going to impact the market is necessary to make good profits. You also need to diversify your investments. Hence you could invest a part of your total portfolio in stocks, another part could be dedicated to currency trading, another part could be used for commodity trading etc. This is generally done by investors so that if one market or one form of investment is going through a bad phase then other forms of investments will keep the portfolio in balance. While trading it is important to remember that the markets can be a risky proposition and hence not all your wealth or income be dedicated to trading. It is also important to understand that the markets can be volatile at times or at times function in a very unprecedented manner. And hence at such times it is important to have diversified your investments in order to minimize your losses. If you are not well aware of trading then do

not worry for trading is no rocket science and definitely online trading is very simple to understand. This web site will tell you about the various online web sites where you can make an online trading account. Also the web site will throw light on what the different forms of online trading are. Investing online, or self-directed investing, has become the norm for individual investors and traders over the past decade with many, if not all brokers now offering online services with unique trading platforms

ABOUT NIRMAL BANG


INTRODUCTION:Nirmal Bang Group is one of the largest retail broking house in India, providing the investors state of art services in capital markets in the country. The Group has memberships of Bombay Exchange Limited, National Stock of India Limited, Multi Commodity Exchange of India Limited, National Commodity and Derivatives Exchange Limited and is also a depository participant of NSDL and CDS (I) L, the depositories of the country. They started in 1986 under Late Shri Nirmal Bang as sub brokers but have grown steadily and progressively since then. Their clients had contributed tremendously to their growth they recognize and applaud that, they value their relationship with the customers and for their convenience had all investing avenues under one roof.

NIRMAL BANG consultantAs the flagship company of the NIRMAL BANG Group, NIRMAL BANG Private Limited has always remained at the helm of organizational affairs, pioneering business policies, work ethic and channels of progress. NIRMAL BANG believes that they were best positioned to venture into that activity as a Depository Participant. They were one of the early entrants registered as Depository Participant with NSDL (National Securities Depository Limited), the first Depository in the country and then with CDSL (Central Depository Services Limited). Today, It service over 1Lac customer accounts in this business spread across over 350 cities/towns in India and are ranked amongst the largest Depository Participants in the country with a growing secondary market presence. It has transferred this business to NIRMAL BANG SECURITIES PRIVATE LIMITED (NBSPL), their associate and a member of NSE, BSE, MCX and NCDEX.

NIRMAL BANG --- Early Days


The birth of NIRMAL BANG was on a modest scale in 1986. It began with the vision and enterprise of a small group of practicing Chartered Accountants who founded the flagship company. NIRMAL BANG Securities Private Limited. It started with consulting and financial accounting automation, and carved inroads. Since then, They have utilized their experience and superlative expertise to go from strength to strengthto better their services, to provide new ones, to innovate, diversify and in the process, evolved NIRMAL BANG as one of Indias premier integrated financial service enterprise. Thus over the last 20 years NIRMAL BANG has traveled the success route, towards building a reputation as an integrated financial services provider, offering a wide spectrum of services. And they have made this journey by taking the route of quality service, path breaking innovations in service, versatility in service and finally totality in service. Their highly qualified manpower, cutting-edge technology, comprehensive infrastructure and total customer-focus has secured for them the position of an emerging financial services giant enjoying the confidence and support of an enviable clientele across diverse fields in the financial world. Their values and vision of attaining total competence in their servicing has served as the building block for creating a great financial enterprise, which stands solid on their fortresses of financial strength - their various companies. With the experience of years of holistic financial servicing behind them and years of complete expertise in the industry to look forward to, They have now emerged as a premier integrated financial services provider. And today, they can look with pride at the fruits of their mastery and experience comprehensive financial services that are competently segregated to service and manage a diverse range of customer requirements.

Business Focus:The focus of the business is the Customer Customer service, Customer education, Customer support, Customer relations and last but not the least Customer acquisition.

Trade execution transparency, timely settlements, risk monitoring and superior service shall have topmost priority, in the best interests of all concerned.

VISION STATEMENT
TO CREATE VALUABLE RELATIONSHIP AND PROVIDE THE BEST FINANCIAL SERVICES MOST PROFESSIONALLY

MISSION STATEMENT TO WORK TOGETHER WITH INTEGRITY & MAKE OUR CUSTOMER FEEL VALUED

CORE VALUE RESPECT OUR COLLEAGUE AND THE BUSINESS ITSELF

BOARD OF DIRECTORS NIRMAL BANG GROUP

NAME

POSITION

Mr. Dilip M. Bang

Director

Mr. Kishore M. Bang

Director

Mr.Rakesh Bhandari

Chartered Accountant

Mr. Deepak Agarwal

Chartered Accountant

Mr.Suvinay Sharma

Chartered Accountant

Mr.Naresh Samdani

Chartered Accountant

Mr. Deepak Patel

Chartered Accountant

Mr. Sunil Jain

Chartered Accountant

Mr.Anup Agarwal

Chartered Accountant

Mr.Brijmohan Bohra

Chartered Accountant

Miss. Monika Bafna

Chartered Accountant

Mr.Brijmohan Bohra

Chartered Accountant

Principal Activities Of
NIRMAL BANG GROUP
NIRMAL BANG Securities Private Limited Member: National Stock Exchange of India Limited Member: Bombay Stock Exchange Limited Participant: National Securities Depository Limited Participant: Central Depository Service (India) Limited

NIRMAL BANG Commodities Private Limited Member - Multi Commodity Exchange of India Limited Member - National Commodities and Derivatives Exchange Ltd.

BANG Equity Broking Private Limited Member - Bombay Stock Exchange Ltd

Nadi Finance & Investment Private Limited RBI registered Non Banking Finance Company

Strength: 24 years of research and broking experience Understandings of the markets All financial needs under one roof Scalable and robust infrastructure Full fledge research unit comprising of both fundamental & technical research Dedicated, Qualified and Loyal staff Flexible Brokerage charges

Weakness: Low Brand Image in the market. Low Professionalism Low Advertisements

Opportunity: Large potential market for delivery and intra-day transactions. Open interest of the people to enter in to stock market for investing Attract the customers who are dissatisfied with other brokers & DPs. Up growing markets in commodity and forex trading

Threats: Decreasing rates of brokerage in the market. A Increasing competition against other brokers & DPs. Poor marketing activities for making the company known among the customers. A threat of loosing clients for any kind of weakness of the company. An Indirect threat from instable stock market, i.e., low/no profitof NIRMAL BANG's clients would lead them to go for other broker/DP.

SERVICES of NIRMAL BANG

NIRMAL BANG SERVICES

OFFLINE ONLINE OTHER SERVICES

OFFLINE:
Offline A/c is the A/c for the investors who are not familiar with the use of computer. The A/C opening charges applied(One time) For 1st Year Demat A/C is Free, On 2nd Year AMC charge is applicable.

ONLINE:
Requirement for online trading: Linked Bank Account

Benefits of online trading


Freedom from paperwork

-time portfolio tracking

OTHER SERVICES:
Dial-n-Trade Mutual Fund Commodity Derivative Depository Participants Distribution of Financial Services Research Based Advices Portfolio Management System

DnT (Dial- n Trade)


Dial n Trade is the name of the phone-trading facility offered by NIRMAL BANG. A call center wholly dedicated to order placement / confirmation.

Easy 2-step process for order placement.


Step1. Enter your PHONE ID Step2. Enter your Client Code On successful dial, call gets transferred to call center executives. NIRMAL BANG Securities Private Limited, one of the cornerstones of the NIRMAL BANG edifice, flows freely towards attaining diverse goals of the customer through varied services. Creating a plethora of opportunities for the customer by opening up investment vistas is backed by research-based advisory services. Here, growth knows no limits and success recognizes no boundaries. Helping the customer create waves in his portfolio and empowering the investor completely is the ultimate goal.

Stock Broking Services

We offer trading on a vast platform; National Stock Exchange, Bombay Stock Exchange, MCX & NCDEX. More importantly, we make trading safe to the maximum possible extent, by accounting for several risk factors and planning accordingly. We are assisted in this task by our in-depth research, constant feedback and sound advisory facilities. Our highly skilled research team, comprising of technical analysts as well as fundamental specialists, secure result-oriented information on market trends, market analysis and market predictions. To empower the investor further we have made serious efforts to ensure that our research calls are disseminated systematically to all our stock broking clients through various delivery channels like email, chat, SMS, phone calls etc.

MUTUAL FUNDS
Introduction:
Everybody talks about mutual funds, but what exactly are they? Are they like shares in a company, or are they like bonds and fixed deposits? Will I lose all my money in funds or will I become an overnight millionaire? Big questions that get answer in just five minutes. Meaning: A mutual fund is a pool of money that is invested according to a common investment objective by an asset management company (AMC). The AMC offers to invest the money of hundreds of investors according to a certain objective to keep money liquid or give a regular income or grow the money long term. Investors buy a scheme if it fits in with their investment goals, like getting a regular income now or letting the money accumulate over the long term. Investors pay a small fraction of their total funds to the AMC each year as investment management fees.

Commodity
Organized futures market evolved in India by the setting up of "Bombay Cotton Trade Association Ltd." in 1875. In 1893, following widespread discontent amongst leading cotton mill owners and merchants over the functioning of the Bombay Cotton Trade Association, a separate association by the name "Bombay Cotton Exchange Ltd." Was constituted. A future trading in oilseeds was organized in India for the first time with the setting up of Gujarati Vyapari Mandali in 1900, which carried on futures trading in groundnut, castor seed and cotton. Before the Second World War broke out in 1939 several futures markets in oilseeds were functioning in Gujarat and Punjab. There were booming activities in this market and at one time as many as 110 exchanges were conducting forward trade in various commodities in the country. The securities market was a poor cousin of this market as there were not many papers to be traded at that time. The era of widespread shortages in many essential commodities

resulting in inflationary pressures and the tilt towards socialist policy, in which the role of market forces for resource allocation got diminished, saw the decline of this market since the mid-1960s. This coupled with the regulatory constraints in 1960s, resulted in virtual dismantling of the commodities future markets. It is only in the last decade that commodity future exchanges have been actively encouraged. However, the markets have been thin with poor liquidity and have not grown to any significant level.

Derivative
The emergence of the market for derivative products, most notably forwards, futures and options, can be traced back to the willingness of risk-averse economic agents to guard themselves against uncertainties arising out of fluctuations in asset prices. By their very nature, the financial markets are marked by a very high degree of volatility. Through the use of derivative products, it is possible to partially or fully transfer price risks by locking-in asset prices. As instruments of risk management, these generally do not influence the fluctuations in the underlying asset prices. However, by locking-in asset prices, derivative products minimize the impact of fluctuations in asset prices on the profitability and cash flow situation of risk-averse investors.

Depository Participants
The onset of the technology revolution in financial services Industry saw the emergence of NIRMAL BANG as an electronic custodian registered with National Securities Depository Ltd (NSDL) and Central Securities Depository Ltd (CSDL). NIRMAL BANG set standards enabling further comfort to the investor by promoting paperless trading across the country and emerged as the top 3 Depository Participants in the country in terms of customer serviced. Offering a wide trading platform with a dual membership at both NSDL and CDSL, we are a powerful medium for trading and settlement of dematerialized Shares. We have established live DPMs, Internet access to accounts and an easier transaction process in order to offer more convenience to

individual and corporate investors. A team of professional and the latest technological expertise allocated exclusively to our demat division including technological enhancements like SPEED-e; make our response time quick and our delivery impeccable. A wide national network makes our efficiencies accessible to all.

EQUITIES
CONCEPT: In accounting and finance, equity is the residual claim or interest of the most junior class of investors in assets, after all liabilities are paid. If liability exceeds assets, negative equity exists. In an accounting context, Shareholders' equity (or stockholders' equity, shareholders' funds, shareholders' capital or similar terms) represents the remaining interest in assets of a company, spread among individual shareholders of common or preferred stock. At the start of a business, owners put some funding into the business to finance operations. This creates a liability on the business in the shape of capital as the business is a separate entity from its owners. Businesses can be considered, for accounting purposes, sums of liabilities and assets; this is the accounting equation. After liabilities have been accounted for the positive remainder is deemed the owner's interest in the business. This definition is helpful in understanding the liquidation process in case of bankruptcy. At first, all the secured creditors are paid against proceeds from assets. Afterward, a series of creditors, ranked in priority sequence, have the next claim/right on the residual proceeds. Ownership equity is the last or residual claim against assets, paid only after all other creditors are paid. In such cases where even creditors could not get enough money to pay their bills, nothing is left over to reimburse owners' equity. Thus owners' equity is reduced to zero. Ownership equity is also known as risk capital or liable capital.

FACTORS THAT INFLUENCE THE PRICE OF THE STOCK: Broadly there are two factors: (1) Stock specific environment rather than the performance of any particular company. Events favorable to an economy, political or regulatory environment like high economic growth, friendly budget, stable government etc. can fuel euphoria in the investors, resulting in a boom in the market. On the other hand, unfavorable events like war, economic crisis, communal riots, minority government etc. depress the market irrespective of certain companies performing well. However, the effect of market-specific factor is generally short-term. Despite ups and downs, price of a stock in the long run gets stabilized based on

the stock specific factors. Therefore, a prudent advice to all investors is to analyze and invest and not speculate in share.

INTRODUCTION
A STOCK

MARKET is a private or public market for the trading of company

stock and derivatives of company stock at an agreed price; both of these are securities listed on a stock exchange as well as those only traded privately. Participants in the stock market range from small individual stock investors to large hedge fund traders, who can be based anywhere. Their orders usually end up with a professional at a stock exchange, who executes the order. Some exchanges are physical locations where transactions are carried out on a trading floor, by a method known as open outcry. This type of auction is used in stock exchanges and commodity exchanges where traders may enter "verbal" bids and offers simultaneously. The other type of exchange is a virtual kind, composed of a network of computers where trades are made electronically via traders. Actual trades are based on an auction market paradigm where a potential buyer bids a specific price for a stock and a potential seller asks a specific price for the stock. (Buying or selling at market means you will accept any ask price or bid price for the stock, respectively.) When the bid and ask prices match, a sale takes place on a first come first served basis if there are multiple bidders or askers at a given price. In India there are many stock exchange are working. But out those many two are the most important and carries the maximum amount of the business these are two stock exchanges are NSE and BSE.

STOCK MARKET
Stock exchange or bourse is a corporation or mutual organization which provides facilities for stock brokers and traders, to trade company stocks and other securities. Stock exchanges also provide facilities for the issue and redemption of securities, as well as, other financial instruments and capital events including the payment of income and dividends. The securities traded on a stock exchange include: shares issued by companies, unit trusts and other pooled investment products and Bonds. To be able to trade a security on a certain stock exchange, it has to be listed there. Usually there is a central location at least for recordkeeping, but trade is less and less linked to such a physical place, as modern markets are electronic networks, which gives them advantages of speed and cost of transactions. Trade on an exchange is by members only. A stock exchange is often the most important component of a stock market. There is usually no compulsion to issue stock via the stock exchange itself, nor must stock be subsequently traded on the exchange. Such trading is said to be off exchange or over-thecounter. This is the usual way that Bonds are traded. The initial offering of stocks and bonds to investors is by definition done in the primary market and subsequent trading is done in the secondary market. Increasingly more and more stock exchanges are part of a global market for securities. Supply and demand in stock a market is driven by various factors which, as in all free markets, affect the price of stocks (see stock valuation). Although common, the term 'the stock market' is a somewhat abstract concept for the mechanism that enables the trading of company stocks. It is also used to describe the totality of all stocks and sometimes other securities, with the exception of bonds, commodities, and derivatives. The term is used especially to apply within one country as, for example, in the phrase "the stock market was up today", or in the term "stock market bubble". Bonds are still traditionally traded in an informal, over-the-counter) market known as the bond market. Commodities

are traded in commodities markets, and derivatives are traded in a variety of markets (but, like bonds, mostly 'over-the-counter'). The stock market is distinct from a stock exchange, which is an entity (a corporation or mutual organization) in the business of bringing buyers and sellers of stocks and securities together. For example, 'the stock market' in the United States includes the trading of all securities listed on the NYSE, the NASDAQ, the Amex, as well as on the many regional exchanges, the OTCBB, and Pink Sheets. European examples of stock exchanges include the Paris Bourse (now part of Euro next), the London Stock Exchange and the Deutsche Brse.

STOCK EXCHANGE:The stock exchange is the important segment of its capital market. If the stock exchange is well-regulated function smoothly, then it is an indicator of healthy capital market. If the state of the stock exchange is good, the overall capital market will grow and otherwise it can suffer a great set back which is not good for the country. The government at various stages controls the stock market and the capitals market. A capital market deals in financial assets, excluding coin and currency. Banking accounts compromises the majority of financial assets. Pension and provident funds insurance policies shares and securities. Financial assets are claim of holders over issuer (business firms and governments). They enter low different segment of financial market. Those having short maturities that are non transferable like bank savings and current accounts set the identification of the monetary financial assets. This market is known as money market, Equity, Preferential shares and bonds and debentures issued by companies and securities issued by the government constitute the financial assets, which are traded in the capital market.

Money Market and Capital Market:Both money market and capital market constitute the financial market. Capital market generally known as stock exchange. This is a institution around which every activity of national capital market revolves. Through the medium stock exchange the investor gets on impetus and motivations to invest in securities without which they would not be able to liquidate the securities. If there would have been no stock exchange many of the savers would have hold their saving either in cash i.e. idle or in bank with low interest rate or low returns. the stock exchange provides the opportunity to investors for the continuous trading in securities. It is continuously engaged in the capital mobilization process. Another consequence of non-existence of stock exchange would have been low saving of the community, which means low investment and lower development of the country. S T O C K Ex C H A N G E Securities provide for investor. Tax Benefits planning and exemption. Optimum return on investment. Cautious Approach. Knowledge of Market. Exchange of Securities Transacted. Cyclopedia of Listed Companies. High Yield. Authentic Information New Entrepreneur encouraged. Guidance of Investor & Company. Equity

HISTORY OF THE STOCK MARKET


In 12th century France the courratiers de change were concerned with managing and regulating the debts of agricultural communities on behalf of the banks. As these men also traded in debts, they could be called the first brokers. Some stories suggest that the origins of the term "bourse" come from the Latin bursa meaning a bag because, in 13c. Bruges, the sign of a purse (or perhaps three purses), hung on the front of the house where merchants met.

However, it is more likely that in the late 13th century commodity traders in Bruges gathered inside the house of a man called Van der Burse, and in 1309 they institutionalized this until now informal meeting and became the "Bruges Bourse". The idea spread quickly around Flanders and neighboring counties and "Bourses" soon opened in Ghent and Amsterdam. In the middle of the 13th century Venetian bankers began to trade in government securities. In 1351 the Venetian Government outlawed spreading rumors intended to lower the price of government funds. There were people in Pisa, Verona, Genoa and Florence who also began trading in government securities during the 14th century. This was only possible because these were independent city states not ruled by a duke but a council of influential citizens. The Dutch later started joint stock companies, which let shareholders invest in business ventures and get a share of their profits - or losses. In 1602, the Dutch East India Company issued the first shares on the Amsterdam Stock Exchange. It was the first company to issue stocks and bonds.

PREDOMINANT FUNCTION OF STOCK MARKET RAISING CAPITAL FOR BUSINESSES The Stock Exchange provides companies with the facility to raise capital for expansion through selling shares to the investing public. MOBILIZING SAVINGS FOR INVESTMENT When people draw their savings and invest in shares, it leads to a more rational allocation of resources because funds, which could have been consumed, or kept in idle deposits with banks, are mobilized and redirected to promote business activity with benefits for several economic sectors such as agriculture, commerce and industry, resulting in a stronger economic growth and higher productivity levels.

FACILITATE COMPANY GROWTH Companies view acquisitions as an opportunity to expand product lines, increase distribution channels, hedge against volatility, increase its market share, or acquire other necessary business assets. A takeover bid or a merger agreement through the stock market is the simplest and most common way to company growing by acquisition or fusion. REDISTRIBUTION OF WEALTH By giving a wide spectrum of people a chance to buy shares and therefore become part-owners (shareholders) of profitable enterprises, the stock market helps to reduce large income inequalities. Both casual and professional stock investors through stock

price rise and dividends get a chance to share in the profits of promising business that were set up by other people. CORPORATE GOVERNANCE By having a wide and varied scope of owners, companies generally tend to improve on their management standards and efficiency in order to satisfy the demands of these shareholders and the more stringent rules for public corporations by public stock exchanges and the government. Consequently, it is alleged that public companies (companies that are owned by shareholders who are members of the general public and trade shares on public exchanges) tend to have better management records than privatelyheld companies (those companies where shares are not publicly traded, often owned by the company founders and/or their families and heirs, or otherwise by a small group of investors). However, some well-documented cases are known where it is alleged that there has been considerable slippage in corporate governance on the part of some public companies CREATES INVESTMENT OPPORTUNITIES FOR SMALL INVESTORS As opposed to other businesses that require huge capital outlay, investing in shares is open to both the large and small stock investors because a person buys the number of shares they can afford. Therefore the Stock Exchange provides an extra source of income to small savers. GOVERNMENT RAISES CAPITAL FOR DEVELOPMENT PROJECTS The Government and even local authorities like municipalities may decide to borrow money in order to finance huge infrastructure projects such as sewerage and water treatment works or housing estates by selling another category of securities known as bonds. These bonds can be raised through the Stock Exchange whereby members of the public buy them. When the Government or Municipal Council gets this alternative source of funds, it no longer has the need to overtax the people in order to finance development.

IMPORTANCE OF STOCK MARKETS


FUNCTION AND PURPOSE: Just as it is important that networks for transport, electricity and telecommunications function properly, so is it essential that, for example, payments can be transacted, capital can be saved and channeled to the most profitable investment projects and that both households and firms get help in handling financial uncertainty and risk as well as possibilities of spreading consumption over time. Financial markets constitute an important part of the total infrastructure for every society that has passed the stage of largely domestic economies. The financial system performs three main tasks: firstly, it handles transfer of payments; secondly, it channels savings to investments with a good return for future consumption; and thirdly, it spreads and reduces (local enterprise) economic risks in relation to the players' targeted returns (but note that systemic risk is not thereby reduced it merely becomes less concentrated and uneven). Moreover, unforeseen risks, or catastrophic risks (such as the complete collapse of the financial system or government institutions), may not be capable of being spread, or insured against. The smooth functioning of all these activities facilitates economic growth in that lower costs and enterprise risks promote the production of goods and services as well as employment. In this way the financial system contributes to increased prosperity. The stock market is one of the most important sources for companies to raise money. Experience has shown that the price of shares and other assets is an important part of the dynamics of economic growth. Rising share prices, for instance, tend to be associated with increased business investment and vice versa. Share prices also affect the wealth of households and their consumption. Therefore, central banks tend to keep an Argus eye on the control and behavior of the stock market and, in general, on the smooth operation financial system functions. Financial stability is the raison d'tre of central banks.

WELL KNOWN STOCK EXCHANGES This is a list of stock exchanges that offers trading in securities besides trading in

future contracts are. New York Stock Exchange Tokyo Stock Exchange NASDAQ London stock Exchange Euro next Toronto Stock Exchange Frankfurt Stock Exchange Hong Kong Stock Exchange

BOMBAY STOCK EXCHANGE

Introduction:
Bombay Stock Exchange is the oldest stock exchange in Asia with a rich heritage, now spanning three centuries in its 133 years of existence. What is now popularly known as BSE was established as "The Native Share & Stock Brokers' Association" in 1875. BSE is the first stock exchange in the country which obtained permanent recognition (in 1956) from the Government of India under the Securities Contracts (Regulation) Act 1956. BSE's pivotal and pre-eminent role in the development of the Indian capital market is widely recognized. It migrated from the open outcry system to an online screen-based order driven trading system in 1995. Earlier an Association of Persons (AOP), BSE is now a corporatized and demutualised entity incorporated under the provisions of the Companies Act, 1956, pursuant to the BSE (Corporatisation and Demutualisation) Scheme, 2005 notified by the Securities and Exchange Board of India (SEBI). With demutualisation, BSE has two of world's best exchanges, Deutsche Bores and Singapore Exchange, as its strategic partners.

Over the past 133 years, BSE has facilitated the growth of the Indian corporate sector by providing it with an efficient access to resources. There is perhaps no major corporate in India which has not sourced BSE's services in raising resources from the capital market. Today, BSE is the world's number 1 exchange in terms of the number of listed companies and the world's 5th in transaction numbers. The market capitalization as on December 31, 2007 stood at USD 1.79 trillion. An investor can choose from more than

4,700 listed companies, which for easy reference, are classified into A, B, S, T and Z groups. The BSE Index, SENSEX, is India's first stock market index that enjoys an iconic stature, and is tracked worldwide. It is an index of 30 stocks representing 12 major sectors. The SENSEX is constructed on a 'free-float' methodology, and is sensitive to market sentiments and market realities. Apart from the SENSEX, BSE offers 21 indices, including 12 sect oral indices. BSE has entered into an index cooperation agreement with Deutsche Bores. This agreement has made SENSEX and other BSE indices available to investors in Europe and America. Moreover, Barclays Global Investors (BGI), the global leader in ETFs through its shares brand, has created the 'shares BSE SENSEX India Tracker' which tracks the SENSEX. The ETF enables investors in Hong Kong to take an exposure to the Indian equity market.

The first Exchange Traded Fund (ETF) on SENSEX, called "Spice" is listed on BSE. It brings to the investors a trading tool that can be easily used for the purposes of investment, trading, hedging and arbitrage. Spice allows small investors to take a longterm view of the market. BSE provides an efficient and transparent market for trading in equity, debt instruments and derivatives. It has a nation-wide reach with a presence in more than 359 cities and towns of India. BSE has always been at par with the international standards. The systems and processes are designed to safeguard market integrity and enhance transparency in operations. BSE is the first exchange in India and the second in the world to obtain an ISO 9001:2000 certifications. It is also the first exchange in the country and second in the world to receive Information Security Management System Standard BS 7799-2-2002 certification for its BSE On-line Trading System (BOLT). BSE continues to innovate. In recent times, it has become the first national level stock exchange to launch its website in Gujarati and Hindi to reach out to a larger number of investors. It has successfully launched a reporting platform for corporate bonds in India christened the ICDM or Indian Corporate Debt Market and a unique ticker-cumscreen aptly named 'BSE Broadcast' which enables information dissemination to the common man on the street.

In 2006, BSE launched the Directors Database and ICERS (Indian Corporate Electronic Reporting System) to facilitate information flow and increase transparency in the Indian capital market. While the Directors Database provides a single-point access to information on the boards of directors of listed companies, the ICERS facilitates the corporate in sharing with BSE their corporate announcements. BSE also has a wide range of services to empower investors and facilitate smooth transactions:

HISTORY
For the premier stock exchange that pioneered the securities transaction business in India, over a century of experience is a proud achievement. A lot has changed since 1875 when 318 persons by paying a then princely amount of Re. 1, became members of what today is called Bombay Stock Exchange Limited (BSE). Over the decades, the stock market in the country has passed through good and bad periods. The journey in the 20th century has not been an easy one. Till the decade of eighties, there was no measure or scale that could precisely measure the various ups and downs in the Indian stock market. BSE, in 1986, came out with a Stock Index-SENSEXthat subsequently became the barometer of the Indian stock market. The launch of SENSEX in 1986 was later followed up in January 1989 by introduction of BSE National Index (Base: 1983-84 = 100). It comprised 100 stocks listed at five major stock exchanges in India - Mumbai, Calcutta, Delhi, Ahmadabad and Madras. The BSE National Index was renamed BSE-100 Index from October 14, 1996 and since then, it is being calculated taking into consideration only the prices of stocks listed at BSE. BSE launched the dollar-linked version of BSE-100 index on May 22, 2006. With a view to provide a better representation of the increasing number of listed companies, larger market capitalization and the new industry sectors, BSE launched on 27th May, 1994 two new index series viz., the 'BSE-200' and the 'DOLLEX-200'. Since then, BSE has come a long way in attuning itself to the varied needs of investors and

market participants. In order to fulfill the need for still broader, segment-specific and sector-specific indices, BSE has continuously been increasing the range of its indices. BSE-500 Index and 5 sect oral indices were launched in 1999. In 2001, BSE launched BSE-PSU Index, DOLLEX-30 and the country's first free-float based index - the BSE TECk Index. Over the years, BSE shifted all its indices to the free-float methodology.

Some Risk management are also taken by BSE they are as follows
1. Know your client scheme

Under the procedure the member brokers of the exchange are compulsory required to obtain detailed information of clients prior to commencement of any transactions with new clients. A similar procedure is also to be followed for existing clients. This information is to be made available to the exchange authorities whenever called for. In case the member broker fails to furnish the same it is viewed seriously. 2. Verification of shares at members office

The exchange has outlined the process i.e. in case the transaction in a script with one particular client in a settlement exceeds Rs 10 laks then the member are to send the photocopies of the transfer deeds and the share certificates to the company/ registrar for verification of the material particulars. The basic idea behind the introduction of this procedure is to prevent fake/forged/stolen shares from being introduced in the market. 3. Inspection

The department is carrying out inspection of the member brokers records as regards compliance of the risk management procedures 4. Insurance

The exchange presently has in place insurance policies to protect itself in the event of losses on account of fire, damage to computer systems and a comprehensive policy that covers risks faced by the exchange, its member brokers and the clearinghouse. The risks covered under the basic cover of the policy are detailed as below. clients. Loss to members on account of infidelity of employees. Loss of member on account of fake/forged/ stolen shares being introduced by his

Direct financial losses suffered by the member broker on account of physical loss,

destruction, theft or damage to securities and cash. Loss on account of securities lost in transit. Loss suffered on account of incomplete transaction. Loss sustained as final receiving member on exchange on account of default of

the introducing member. Loss on account of errors and omission. Directors and officials liability cover.

NATIONAL STOCK EXCHANGE OF INDIA

NSE is mutually-owned by a set of leading financial institutions, banks, insurance companies and The National Stock Exchange of India Limited (NSE), is a Mumbaibased stock exchange. It is the largest stock exchange in India in terms of daily turnover and number of trades, for both equities and derivative trading.[1]. Though a number of other exchanges exist, NSE and the Bombay Stock Exchange are the two most significant stock exchanges in India and between them are responsible for the vast majority of share transactions. The NSE's key index is the S&P CNX Nifty, known as the Nifty, an index of fifty major stocks weighted by market capitalization. Other financial intermediaries in India but its ownership and management operate as separate entities. There are at least 2 foreign investors NYSE Euro next and Goldman Sachs who have taken a stake in the NSE. As of 2006[update], the NSE VSAT terminals, 2799 in total, cover more than 1500 cities across India. In October 2007, the equity market capitalization of the companies listed on the NSE was US$ 1.46 trillion, making it the second largest stock exchange in South Asia. NSE is the third largest Stock Exchange in the world in terms of the number of trades in equities. It is the second fastest growing stock exchange in the world with a recorded growth of 16.6%.

ORIGINSNSE building at BKC The National Stock Exchange of India was promoted by leading financial institutions at the behest of the Government of India, and was incorporated in November 1992 as a tax-paying company. In April 1993, it was recognized as a stock exchange under the Securities Contracts (Regulation) Act, 1956. NSE commenced operations in the Wholesale Debt Market (WDM) segment in June 1994. The Capital Market (Equities) segment of the NSE commenced operations in November 1994, while operations in the Derivatives segment commenced in June 2000. INNOVATIONS NSE has remained in the forefront of modernization of India's capital and financial markets, and its pioneering efforts include:

Being the first national, anonymous, electronic limit order book (LOB) exchange

to trade securities in India. Since the success of the NSE, existent market and new market structures have followed the "NSE" model.

Setting up the first clearing corporation "National Securities Clearing Corporation

Ltd." in India. NSCCL was a landmark in providing innovation on all spot equity market (and later, derivatives market) trades in India.

Co-promoting and setting up of National Securities Depository Limited, first

depository in India [2].


Setting up of S&P CNX Nifty. NSE pioneered commencement of Internet Trading in February 2000, which led

to the wide popularization of the NSE in the broker community.

Being the first exchange that, in 1996, proposed exchange traded derivatives,

particularly on an equity index, in India. After four years of policy and regulatory debate and formulation, the NSE was permitted to start trading equity derivatives

Being the first and the only exchange to trade GOLD ETFs (exchange traded

funds) in India.

NSE has also launched the NSE-CNBC-TV18 media centre in association with

CNBC-TV18; it is the one of the most important stock exchange in the world.

S&P CNX NIFTY


S&P CNX Nifty is a well diversified 50 stock index accounting for 21 sectors of the economy. It is used for a variety of purposes such as benchmarking fund portfolios, index based derivatives and index funds.

S&P CNX Nifty is owned and managed by India Index Services and Products Ltd. (IISL), which is a joint venture between NSE and CRISIL. IISL is India's first specialized company focused upon the index as a core product. IISL has Marketing and licensing agreement with standard & poors (S&P), who world leaders are in index services.

The total traded value for the last six months of all Nifty stocks is approximately

65.68% of the traded value of all stocks on the NSE

Nifty stocks represent about 65.34% of the total market capitalization as on Mar

31, 2009.

Impact cost of the S&P CNX Nifty for a portfolio size of Rs.2 corer is 0.16% S&P CNX Nifty is professionally maintained and is ideal for derivatives trading.

SENSEX & THE NIFTY


The SENSEX is an "index". What is an index? An index is basically an indicator. It gives you a general idea about whether most of the stocks have gone up or most of the stocks have gone down. The SENSEX is an indicator of all the major companies of the BSE. The Nifty is an indicator of all the major companies of the NSE.

If the SENSEX goes up, it means that the prices of the stocks of most of the major companies on the BSE have gone up. If the SENSEX goes down, this tells you that the stock price of most of the major stocks on the BSE have gone down. Just like the SENSEX represents the top stocks of the BSE, the Nifty represents the top stocks of the NSE. Just in case you are confused, the BSE is the Bombay Stock Exchange and the NSE is the National Stock Exchange. The BSE is situated at Bombay and the NSE is situated at Delhi. These are the major stock exchanges in the country. There are other stock exchanges like the Calcutta Stock Exchange etc. but they are not as popular as the BSE and the NSE.Most of the stock trading in the country is done though the BSE & the NSE. Besides SENSEX and the Nifty there are many other indexes. There is an index that gives you an idea about whether the mid-cap stocks go up and down. This is called the BSE Mid-cap Index.

MANAGEMENT OF STOCK EXCHANGE


Management of stock exchange is done an elected body of members. These bodies are known by different names in different stock exchange for example, the BOMBAY, INDORE and AHEMDABAD stock exchange are managed by a governing board. Council of management governs the MADRAS stock exchange. A committee manages the CALCUTTA stock exchange. While the board of director manages stock exchange. These governing bodies are powerful bodies enjoying extensive administrative power of management and control over their respective stock exchange the day-to-day function of the stock exchanges are executed by the sub-committee like the defaulters committee listing committee, settlement committee etc.

SEBI

SEBI Bhavan, Mumbai Headquarters of SEBI ORGANIZATION DETAILS Headquarters Established Jurisdiction Head Chairman Term Total Staff[1] Mumbai, Maharashtra, India 1992 India Chairman C B Bhave February 16, 2008 525

OFFICIAL WEBSITE Website www.sebi.gov.in

SEBI is the Regulator for the Securities Market in India. Originally set up by the Government of India in 1988, it acquired statutory form in 1992 with SEBI Act 1992 being passed by the Indian Parliament. Chaired by C B Bhave, SEBI is headquartered in the popular business district of Bandra-Kurla complex in Mumbai, and has Northern,

Eastern, Southern and Western regional offices in New Delhi, Kolkata, Chennai and Ahmadabad. ORGANIZATION STRUCTURE Chandrasekhar Bhaskar Bhave is the sixth chairman of the Securities Market Regulator. Prior to taking charge as Chairman SEBI, he had been the chairman of NSDL (National Securities Depository Limited) ushering in paperless securities. Prior to his stint at NSDL, he had served SEBI as a Senior Executive Director. He is a former Indian Administrative Service Officer of the 1975 batch. The board comprises

BOARD MEMBERS

Shri U. K. Sinha, Chairman, SEBI, SEBI Bhavan, Bandra Kurla Complex, Bandra (E), Mumbai - 400051. CHAIRMAN

T. V. Mohandas Pai Chairman, Manipal Universal Learning Pvt. Ltd., #70, Grace Towers, 3rd Floor, Millers Road Bangalore - 560 052 Member Appointed under Section 4(1)(d) of the SEBI Act , 1992

Shri Prashant Saran Whole-Time Member, SEBI, SEBI Bhavan, Bandra Kurla Complex, Bandra (E), Mumbai - 400051. Member Appointed under Section 4(1)(d) of the SEBI Act, 1992

Dr. Thomas Mathew Joint Secretary (Capital Markets), Department of Economic Affairs, Ministry of Finance New Delhi Member Nominated under Section 4(1)(b) of the SEBI Act, 1992

Shri V. K. Jairath 194 B Kalpatru Horizon, S.K. Ahire Marg, Worli, Mumbai 400018 Member Appointed under Section 4(1)(d) of the SEBI Act , 1992

Shri Anand Sinha Deputy Governor Reserve Bank of India Member Nominated under Section 4 (1) (c) of the SEBI Act, 1992

Shri D K Mittal Secretary Ministry of Corporate Affairs Member Nominated under Section 4 (1) (b) of the SEBI Act, 1992

FUNCTIONS AND RESPONSIBILITIES OF SEBI: SEBI has to be responsive to the needs of three groups, which constitute the market:

the issuers of securities the investors The market intermediaries. SEBI has three functions rolled into one body quasi-legislative, quasi-judicial and

quasi-executive. It drafts regulations in its legislative capacity, it conducts investigation and enforcement action in its executive function and it passes rulings and orders in its judicial capacity. Though this makes it very powerful, there is an appeals process to create accountability. There is a Securities Appellate Tribunal which is a three member tribunal and is presently headed by a former Chief Justice of a High court - Mr. Justice NK Sodhi. A second appeal lies directly to the Supreme Court. SEBI has enjoyed success as a regulator by pushing systemic reforms aggressively and successively (e.g. the quick movement towards making the markets electronic and paperless rolling settlement on T+2 bases). SEBI has been active in setting up the regulations as required under law.

ROLE OF STOCK EXCHANGES


Stock exchanges have multiple roles in the economy, this may include the following:

1. Raising capital for businesses


The Stock Exchange provides companies with the facility to raise capital for expansion through selling shares to the investing public.

2. Mobilizing savings for investment


When people draw their savings and invest in shares, it leads to a more rational allocation of resources because funds, which could have been consumed, or kept in idle deposits with banks, are mobilized and redirected to promote business activity with benefits for several economic sectors such as agriculture, commerce and industry, resulting in stronger economic growth and higher productivity levels and firms.

3. Facilitating company growth


Companies view acquisitions as an opportunity to expand product lines, increase distribution channels, hedge against volatility, increase its market share, or acquire other necessary business assets. A takeover bid or a merger agreement through the stock market is one of the simplest and most common ways for a company to grow by acquisition or fusion.

4. Redistribution of wealth
Stock exchanges do not exist to redistribute wealth. However, both casual and professional stock investors, through dividends and stock price increases that may result in capital gains, will share in the wealth of profitable businesses.

5. Corporate governance
By having a wide and varied scope of owners, companies generally tend to improve on their management standards and efficiency in order to satisfy the demands of these shareholders and the more stringent rules for public corporations imposed by public

stock exchanges and the government. Consequently, it is alleged that public companies (companies that are owned by shareholders who are members of the general public and trade shares on public exchanges) tend to have better management records than privatelyheld companies (those companies where shares are not publicly traded, often owned by the company founders and/or their families and heirs, or otherwise by a small group of investors). However, some well-documented cases are known where it is alleged that there has been considerable slippage in corporate governance on the part of some public companies. The dot-com bubble in the early 2000s, and the subprime mortgage crisis in 2007-08, are classical examples of corporate mismanagement. Companies like Pets.com (2000), Enron Corporation (2001), One.Tel (2001), Sunbeam (2001), Web van (2001), Adelphia (2002), MCI WorldCom (2002), Parmalat (2003), American International Group (2008), Lehman Brothers (2008), and Satyam Computer Services (2009) were among the most widely scrutinized by the media.

7. Creating investment opportunities for small investors


As opposed to other businesses that require huge capital outlay, investing in shares is open to both the large and small stock investors because a person buys the number of shares they can afford. Therefore the Stock Exchange provides the opportunity for small investors to own shares of the same companies as large investors.

8. Government capital-raising for development projects


Governments at various levels may decide to borrow money in order to finance infrastructure projects such as sewage and water treatment works or housing estates by selling another category of securities known as bonds. These bonds can be raised through the Stock Exchange whereby members of the public buy them, thus loaning money to the government. The issuance of such bonds can obviate the need to directly tax the citizens in order to finance development, although by securing such bonds with the full faith and credit of the government instead of with collateral, the result is that the government must tax the citizens or otherwise raise additional funds to make any regular coupon payments and refund the principal when the bonds mature.

9. Barometer of the economy


At the stock exchange, share prices rise and fall depending, largely, on market forces. Share prices tend to rise or remain stable when companies and the economy in general show signs of stability and growth. An economic recession, depression, or financial crisis could eventually lead to a stock market crash. Therefore the movement of share prices and in general of the stock indexes can be an indicator of the general trend in the economy.

STOCK BROKERS
SEBI registered stock - brokers interested in providing Internet based trading services will be required to apply to the respective stock exchange for a formal permission. The stock exchange should grant approval or reject the application as the case may be, and communicate its decision to the member within thirty calendar days of the date of completed application submitted to the exchange. The Exchange closely monitors outstanding position of top buying memberbrokers and top selling member-brokers on a daily basis. For this purpose, it has developed various market monitoring reports based on certain pre-set parameters. These reports are scrutinized by officials of the Surveillance Dept. to ascertain whether a member-broker has built up excessive purchase or sale position compared to his normal level of business. Further, it is examined whether purchases or sales are concentrated in one or more scrips, whether the margin cover is adequate, whether transactions have been entered into on behalf of institutional clients and even the quality of scrips, i.e., liquid or illiquid is looked into in order to assess the quality of exposure. The Exchange also scrutinizes the pay-in position of the member-brokers and the member-brokers having larger funds pay-in positions are at times, at the discretion of the Exchange, required to make advance pay-in on T+1 day instead of on T+2 day.

BASIC REQUIREMENTS FOR STOCK BROKERS


Trading will be on existing stock exchanges through order routing system for execution of trades. Therefore, stockbrokers are to comply with the following before the start of trade on Internet. 1. The broker must have a net worth of Rs. 50 lakh if he wants to avail the facility of

Internet for his own. 2. 3. 4. 5. 6. Provision for maintenance of adequate back up system. The software system to be used by him should be secured and reliable. To employ the qualified staff for this purpose. To send order/trade confirmation to the client also through e-mail. The contract notes must be issued to the clients as per existing regulation within

24 hours of the execution of trades. 7. The broker and his client should use authentication technologies.

The above are some of the important pre-requisites for the stockbroker should intend to take benefits of trading on Internet. However, detailed guidelines issued by the SEBI for the stock exchange

KIND OF STOCK BROKERS 1. Commission Broker:Near about all the brokers buy and sell securities for earning a commission for investor point of view he is the most important person and responsibility is to buy and sell stoke for his customer. It means that he acts as an agent of investor and earns commission for his services rendered. The broker is also an independent dealer in securities. He purchases and sells securities in his own name but he is not allowed to deal with non-member.

2. Jobber:He is a professional speculator who works for a profit called turn he makes a continuous auction in the market in the stoke in which he specialized. He trades in the market evens for small difference in the prices and helps to maintain liquidity in the stoke exchange.

3. Floor Broker:The floor broker buys and sells shares for the other broker on the floor of the exchange. He is an individual member owns his seat and receives his own commission on the orders he execute. He helps other brokers when they are buy and as compensation receives a portion the broker.

4. Odd lit dealer:For trading in stock exchange there a certain number of share a fixed to be transacted in a lot, this is known as round lat which is usually a, 100 share a. Any thing less than the round lot are add lot. If a person is in possession of add lot of share i.e. 10, 20, 30, 40 etc. They he will has to look for the add lot dealer.

5. Budliwala:He is the person who finance or provide credit facilities to the market for this service he charges a fees called contango or backwardation charges. The budliwala gives a fully secured loan for period of 2 to 3 weeks.

6. Arbitrageur:A person who is specialist in dealing with securities in different stoke exchange centers at the same time. He makes a profit by the difference in the piece prevailing in different centers of the market activity. For example the rte of a certain scrip is higher in some stoke exchange than other on. In this case the broker will buy the scrip from the marked lower price and will sell the scrip in the market at higher price. The profit of the arbitrageur depends on the ability to get the prices from different centers before trading in other stoke exchanges.

RISK MANAGEMENT IN A BROKING FIRM


Risk management in a Broking Industry is a new concept in India, since it poses maximum risk in the financial market, managing it was felt most essential by the regulatory bodies and exchanges. Therefore NSE introduced for the first time in India, risk containment measures that were common internationally but were absent from the Indian Securities Market. NSCCL has put in place a comprehensive risk management system, which is constantly upgraded to pre-empt market failures. These measures were taken to reduce the brokers risks. Whereas SEBI has given some guidelines under Investors Protection to protect investors risks. NSE has given the following risk management measures

STOCK TRADING
OVERVIEWThe marketing of the securities on the stock exchange can be done through member of the stock exchange. These members can be either individuals or corporate bodies. For the process of trading in stock exchange there is the basic need for a transaction between an individual and the broker execute customers order to buy or sell on the stock exchange trading ring. The exchange of scrip between the member of the exchange in from of buying or selling is called trading Broker is the member of recognized stock exchange and helps the customers in buying or selling the securities for the brokerage that he receives.

ONLINE TRADING
In the past, investors had to call up their brokers and place an order on the telephone. The broker would then enter the order in their system which was linked to trading floors and exchanges. With the advent of the internet, investors can now enter orders directly online or even trade with other investors via electronic communication networks (ECN). Some orders entered online are still routed through the broker allowing agents to approve or monitor the trades. This step assists in the protection of both the client and brokerage firm from unlawful or incorrect trades which could affect the clients portfolio or the brokers license. Online brokers are most often referred to as discount brokers, due to their lower fees as opposed to full service brokers who also give advice to clients. Before choosing to invest or trade online it is important for investors to research the online brokers that they plan to employ, assuring that they are licensed within their state or provincial jurisdiction

PROCEDURE OF TRADING
1.Select of broker
The first step is buying or selling of share is to select a broker for transaction business on behalf of the investor. The trading of securities on the stock exchange can be done through members of the exchange.

An investor prefers to select a broker who shall. Act with due skill. Care and diligence in the conduct of all his business. Not create false market either singly or in concert with other.

2.Opening An Account With The Broker


The next step to open account with the broker. It helps the investor to provide his credit worthiness, if the clients were not to do margin money with the broker.

3.Selection Of Securities
This is application for buying securities. The investor may be consulted with broker and take advise for selection of securities.

4.Selection Of Time For Trading


This is important to get the best advantage from buying or selling the securities.

5. Placing An Order
Various method of placing an order with the broker has been evolved to give the broker leverage when he is on the floor of the stock exchange.

6. Preparation Of Contract Note


SEBI circular of 4th Feb. 1991 requires that all member of the recognized stock exchange issue contract note to the investors on the execution of trade. Brokers, therefore issue contract note to the client, which gives the name of the company, price of

trade, brokerage, time of execution, provision regarding arbitration etc. in term of the bye-laws of stock exchange, this is statutory requirement and mandatory.

7. Settlement
The settlement is the process where by payment is made by brokers who have made purchase and share delivery by those brokers who have made sales.

DAY TRADING

Day trading (and trading in general) is the buying and selling of various financial instruments, such as futures, options, currencies, and stocks, with the goal of making a profit from the difference between the buying price and the selling price. Day trading differs slightly from other styles of trading in that positions are rarely (if ever) held overnight or when the market being traded is closed. Day trading was originally only available to financial companies (such as banks), because only they had access to the exchanges and market data. But with recent technology such as the Internet, individual traders now have direct access to the same exchanges and market data, and can make the same trades at very low cost.

TRADING STYLESThere are several different styles of day trading, suited to different day trader personalities. The styles range from short term trading such as scalping where positions are only held for a few seconds or minutes, to longer term swing and position trading where a position may be held throughout the trading day. Most day trading systems have a lot of flexibility, and can have open positions for anywhere from a few minutes to a few hours, depending upon how the trade is doing (whether it is in profit). Some day traders will trade multiple styles, but most traders will choose a single style and only take that type of trade. Day trading also has different types of trade, such as trend trades, counter-trend trades, and ranging trades. Trend trades are trades in the direction of the current price movement (i.e. buying if the price is moving up), and counter-trend trades are trades against the direction of the current price movement (i.e. selling if the price is moving up). Ranging trades are trades that go back and forth between two prices, and are used when the market is moving sideways. Most day traders will choose a single type of trade, but some traders will take different types, and choose which one to trade depending upon the current condition of the market. In addition to the style and type of day trading, there are other variances between day traders. Some day traders like to make many trades throughout the trading day, while others prefer to wait for what they consider the best conditions for their trade, and perhaps only make one trade per day. However many trades are made, the trading process that is used, and the desired goal of making a profit, are the same.

OBJECTIVE

Primary objective of the project are:

To study about the equity market and share trading. To analyze the product & services of Nirmal Bang & Securities Ltd. To learn the marketing techniques that are used to acquire a client (was the secondary objective of the summer training).

RESEARCH METHODOLOGY
Introduction
Research methodology is a careful investigation or inquiry in systematic manner and finding solution to a problem under investigation. It accompanies of defining and redefining problems formulating hypothesis or reaching conclusion and at last carefully testing the conclusion to determine whether they fit the formulating hypothesis. My research methodology has a specific framework for collecting the data in an effective manner. I have taken two types of data into consideration e.g. Primary data and secondary data. My major emphasis is on gathering the primary data. The secondary data will be used to more things clear. Research in common parlance refers to a search for knowledge. One can also define research as a scientific and systematic search for pertinent information on a specific topic.

RESEARCH DESIGN
Introduction
Research design is an arrangement of conditions for collections and analysis of data in a manner that aims to combine relevance to the research purpose with economy in procedure. The design includes an outline of what the researcher will do from writing the hypothesis and its operational implications to the final analysis the data.

Data Collection Method


Data collection is a basic step and of vital importance. On which success or failure of the study depends. All researchers can tap into two sources of data.
Primary Data Secondary Data

Primary Data
Primary data are obtained by a study specifically designed to fulfill the data needs of the problem at hand. Such data are original in character. These data are raw material. They are the measurement observed and recorded as a part of original study. They are original in character. The investigator or researcher directly collects this data. The basic form of obtaining this data is by observing and questioning. The Primary data was a detailed interview schedule with the help of a detailed questionnaire. The samples were drawn purposively from various areas for the relevance of study. The primary data was collected by using the questioner method.

Secondary Data
Data which are not originally collected but rather obtained from published or unpublished sources are known as secondary data. They are not originally drawn by the researcher as fresh data. These are collected by some other person for this purpose and published. These types of data can be collected through various sources. In this present study we have used primary and secondary data source.

Statistical Tools Used

Data is collected and analyzed by using: Pie chart Tables For this, data collection method was used. In the data collection method, both primary and secondary data were collected to meet the objectives. The primary data was collected by a survey based on the questionnaire. The questions were listed in a pre arranged order and the object of enquiry was revealed to the respondents.

QUESTIONNAIRE Questionnaire are formal set of questions prepare to collect the required information. This is one of the most effective and popular technique used in surveys. However, one has to be careful while drawing up questionnaire. Before deciding on the questions, it is important to understand the exact nature of the information required and who should be interviewed. A questionnaire was prepared to identify the factors affecting the employees and also to obtain an open feedback from the employees over different issues in the organization.

Sampling Technique
Sampling is the process of learning about the population on the basis of a sample drawn from it. In the sampling techniques instead of every unit of the universe only a part of universe is studied and the conclusion is drawn on that basis for the entire universe. The process of sampling involves three elements. Selecting the sample, Collecting the information, Making an Inference about the population.

In order to collect the data from the respondent, the Judgment convenience technique was used. The respondents who were asked to fill the questionnaire are called Sampling units.

Sample Size
Size of sample means the number of sampling units selected from the population for investigation. The sample size which we choose was 50

DATA ANALYSIS AND INTERPRETATION


Respondents currently investing money in share market?
YES NO 96% 4%

YES NO

INTERPRETATION
1.ALMOST ALL THE RESPONDENTS ARE INVESTING MONEY IN SHARE MARKET DIRECTLY OR INDIRECTLY 2.VERY FEW (i.e. only 3% ) ARE NOT INVESTIN MONEY IN SHARE MARKET

RESPONDENTA DEALS IN ?
EQUITY COMMODITIES MUTUAL FUNDS OTHERS 70% 2% 88% 1.2%

EQUITY COMMODITIES MUTUAL FUNDS OTHERS

INTERPRETATION
1. MOST OF RESPONDENTS ARE INTERESTED IN EQUITY AND MUTUAL FUNDS
2. VERY FEW FIND GOOD RETURNS IN COMMODITES AND IN OTHER MARKET INVESTMENT OPTIONS

RESPONDENTS PREFERENCE FOR INVESTMENTS EQUITY MUTUAL FUNDS GOVERNMENT SECURITES 8% 56% 36%

EQUITY MUTUAL FUNDS GOVERNMENT SECUTIES

EQUITY MUTUAL FUNDS GOVERNMENT SECURITES

8% 56% 36%

INTERPRETATION Respondents prefer government securities and mutual funds for investments
r

RESPONDENTS GENERALLY PREFER FOLLOWING TRADING OPTION-

OFFLINE ONLINE

32% 68%

ONLINE OFFLINE

INTERPRETATION
1. 69% RESPONDENTS FEEL ONLINE OPTION IS MORE CONVINIENT 2. REST OF THE RESPONDENTS (i.e. 39%) PREFER OFFLINE DUE TO LACK OF TIME AND KNOLEDGE.

RESPONDENTS TRADE, BEFORE ONLINE OPTION PROVIDED TO THEM-

YES NO

84% 16%

YES NO

INTERPRETATION
1.17% OF RESPONDENTS HAVE INVESTED MONEY IN SHARE MARKET BEFORE ONLINE OPTION WAS PROVIDED, MOST OF THEM ARE TRADERS. 2. 83% OF RESPONDENTS HAVE INVESTED MONEY IN SHARE MARKET AFTER AVAILIBILITY OF ONLINE OPTION.

RESPONDENTS GENERALLY INTERESTED IN INTRADAY OR DELIVERY-

INTRADAY DELIVERY

56% 44%

INTRADAY DELIVARY

INTERPRETATION

MORE THAN HALF (i.e. 55%) RESPONDENTS ARE INTERESRTED IN INTRADAY AS TO SAVE THEIR BROKERAGE CHARGE AND TO MINIMIZE THE RISK MONEY BLOCKAGE. NEARLY HALF (i.e. 45%) RESPONDENTS ARE INTERESTED IN DELIVARY AS THEY PREFER LONG INVESTMENTS

RESPONDENTS DURATION OF HOLDINGDAY WEEK MONTH YEAR 54% 26% 16% 4%

DAY WEEK MONTH YEAR

INTERPRETATION
RESPONDENTS HOLD A PERTICULAR SHARE OF A PERTICULAR FIRM TAKING INTO CONSIDERATION NATURE OF SHARE, ITS UTILITY, AND RETURN ASSOCIATED WITH IT.

RESPONDANTS PERCENTAGE OF EARNING, THEY INVEST IN SHARE MARKET-

LESS THAN 10% LESS THAN 20% LESS THAN 30% LESSTHAN 40% MORE THAN 40%

16% 10% 28% 14% 32%

LESS THAN 10% LESS THAN 20% LESS THAN 30% LESS THAN 40% MORE THAN 40%

INTERPRETATION
MOST OF RESPONDENTS WHO INVEST IN MARKET WITH MORE THAN 40% OF THEIR INCOME ARE TRADERS AND MOSTLY BELOW IT ARE SHORT TIME INVESTERS WHO WANTED TO GET BENIFITE WITH INCREASE IN MARKET.

RESPONDANTS EXPERIANCE IN SHARE MARKET-

VERY GOOD GOOD NEUTRAL BAD VERY BAD

34% 22% 28% 14% 16%

VERY GOOD GOOD NEUTRAL BAD VERY BAD

INTERPRETATION
MOST OF THE RESPONDENTS WITH RESPONCES OF BAD (14% ) AND VERY BAD (16%) ARE NEW TO MARKET AND RESPONEDNTS WITH RESPONCES GOOD (23%) AND NEUTRAL (27%) HAVE SPEND MORE THAN A HALF OF DECADE IN MORE IN MARKET AND RESPONDENTS WITH VERY GOOD (34%) RESPONCE HAVE SPEND MORE A DECADE IN MARKET AND THEREFORE THEY ARE ABLE RO READ THE BEHAVIOUR

RESPONDENTS CURRENT BROKERNIRMAL BANG KARVY INDIABULLS ANGEL SHERKHAN OTHER 6% 22% 16% 18% 24% 14%

NIRMAL BANG KARVY INDIABUULS ANGEL SHERKHAN OTHER

INTERPRETATION
AS NIRMAL BANG IS NEW TO NORTH REGION OF INDIA VERY FEW RESPONDENTS ARE AWARE OF NIRMAL BANG REST OF THE FIRMS ARE NOT NEW TO SAME REGION AS NIRMAL BANG

RESPONDENTS SATISFIED WTH BROKERAGE CHARGE THEY PAY-

HIGHLY SATISFIED SATISFIED NEUTRAL DISSATISFIED HIGHLY DISSATISFIED

12% 38% 30% 16% 4%

HIGHLY SATISFIED SATISFIED NEUTRAL DISSATISFIED HIGHLT DISSATISFIED

INTERPRETATION
HIGHLY SATISFIED (12%) AND SATISSFIED (37%) RESPONDENTS ARE BIG INVESTORS AND THEREFORE BROKERS PROVIDE THEM SPECIAL DISCOUNT AND REST OF THE RESPONDENTS i.e.ARE PROVIDED WITH OPTIONS ACCORDING TO THEIR INVESTMENTS AND POLICIES OF BROKER FIRM.

RESPONDENTS ARE SATISFIED WITH ADDITIONAL SERVICES OF THEIR BROKER.

HIGHLY SATISFIED SATISFIED NEUTRAL DISSATISFIED HIGHLY DISSATISFIED

28% 32% 28% 8% 4%

HIGHLY SATISFIED SATISFIED NEUTRAL DISSATISFIED HIGHL DISSATISFIED

INTERPRETATION
HIGHLY SATISFIED (33%) AND SATISSFIED (29%) RESPONDENTS ARE BIG INVESTORS AND THEREFORE BROKERS PROVIDE THEM SPECIAL SERVICES AND REST OF THE RESPONDENTS WITH RESPONCES NEUTRAL (32%) DISSATISFIED (3%) AND HIGHLY DISSATISFIED (3%) ARE PROVIDED WITH OPTIONS ACCORDING TO THEIR INVESTMENTS AND POLICIES OF BROKER FIRM.

RESPONDENTS ARE SATISFIED WITH RESEARCH SUGGESTIONS OF THE BROKER.

HIGHLY SATISFIED SATISFIED NEUTRAL DISSATISFIED HIGHLY DISSATISFIED

38% 30% 24% 6% 4%

HIGHLY SATISFIED SATISFIED NEUTRAL DISSATISFIED HIGHLY DISSATISFIES

37% RESPONDENTS ARE HIGHLY SATISFIED 31% RESPONDENTS ARE SATISFIED 23% RESPONDENTS FEEL MODERATELT SATISFIED 5% RESPONDENTS ARE DISSATISFIED 4% RESPONDENTS ARE HIGHLY DISSATISFIED

EFFICIENCY WITH WHICH RESPONDENTS CALLS ARE RECEIVED BY EXECUTIVES-

VERY QUICKLY QUICKLY MODERATELY LATE VERY LATE

30% 28% 24% 12% 6%

HIGHLY SATISFIED SATISFIED NEUTRAL DISSATISFIED HIGHLY DISSATISFIES

INTERPRETATION
PROMPTNESS AT RECEIVING CALLS DEPENDS ON INFRASTUCTURE OF FIRM 82% RESPONDENTS ARE SEEMED TO BE SATISFIED BUT 18% ARE NOT COMFERTABLE WITH IT

RESPONDENTS ARE SATISFIED WITH RELATIONSHIP-MANAGERHIGHLY SATISFIED SATISFIED NEUTRAL DISSATISFIED HIGHLY DISSATISFIED 40% 26% 22% 8% 2%

HIGHLY SATISFIED SATISFIED NEUTRAL DISSATISFIED HIGHLY DISSATISFIES

INTERPRETATION
EVERY BROKER TRIES TO SATISFIED ITS CLIENTS ESPECIALLY BIG INVESTORS THEREFORE ACCORDING TO RESEARCH 40% RESPONDENTS ARE HIGHLY SATISFIED 27% RESPONDENTS ARE SATISFIED 22% RESPONDENTS FEEL MODERATELT SATISFIED 9% RESPONDENTS ARE DISSATISFIED 2% RESPONDENTS ARE HIGHLY DISSATISFIED

FINDINGS

Respondents like to invest in equity market as it provides good return but according to their risk bearing capabilities.

For investment respondents prefer mutual funds and government securities.

Online trading option have increased the scope of trading

Most of the respondents are satisfied with their current broker and services provided by them.

More than half of respondents have good experience in market and would like to invest further in market.

Conclusion And Recommendation


NIRMAL BANG AND SECURITIES is a share trading broking house that deals in financial products like mutual fund, Online and off line trading accounts. Today the customer/ client invest their money more wisely and with minimum risk. They want maximum returns with minimum risk. NIRMAL BANG provides these services like trading on line and off line. For availing these services the customer must have pan card, bank account, address proof etc. The project given to me in the organization was SCOPE AND CURRENT SCENATIO OF ONLINE TRADING IN EQUITY MARKET. As my first suggestion I would like to suggest increasing the number of terminal. It will increase the convenience for both investor and dealer. According to the data analyzed it was found that most of the customer are not aware of Demat A/c, so the company should adopt extensive advertising measures to promote there financial products . The company should also establish a library for the employees as well as clients for enhancing knowledge. The company should attract the market more vigorously and go in for trapping more and new customers. The company should provide special schemes for customers with more information to motivate them. The company should also try their best to make the customer aware of the technical aspect of the schemes so that the customers do not feel that they are ignorant of any fact. More advertisement at local level is required. Since most of the people are unaware about the NIRMAL BANG the broking company. The company can make them aware by educating them about it with the help of road shows and canopies. The next suggestion I would like to suggest is the best utilization of work force. Special care should be given to advertising, as there was lack of awareness among the people.

LIMITATION OF STUDY

Study is completed in the period of two months. Most of the respondents were least interested in questionnaire. All the respondents are of Lucknow city only. Lack of knowledge in respondents. It was difficult to get correct information from some of the people.

BIBLIOGRAPHY

Investment Management, Preeti Singh Chandra Parsanna, Financial Management Brochures, Catalogues, Documents and Records Websites:-

www.finpipe.com www.amfindia.com www.mcxindia.com www.ncdexindia.com www.myiris.com

ANNEXURE

QUESTIONNAIRE
TOPIC: - SCOPE AND CURRENT SCENARIO OF ONLINE TRADING IN EQUITY MARKET DATE.. NAME...... ADDRESS............ E-MAIL I.D. ......... TIME IN MARKET.............................. CONTACTNO........................ AGE............................................................ OCCUPATION.........................

Q. Are you currently investing money in share market? Yes () No ()

Q. Which section you deal in? EQUITY () COMMODITIES () MUTUAL FUNDS () OTHERS ()

Specify.

Q. Which option do you prefer for investments? EQUITY () MUTUAL FUNDS () GOVERNMENT SECURITES ()

Q. Which trading option do you generally prefer? Offline () online ()

Q. Do you trade before online trading option was introduced? Yes () no ()

Q. Which option do you generally prefer? Intraday () delivery ()

Q. What is your duration of holding? Day () week () month () year ()

Q. What percentage of your earning do you invest in share market? Less than 10% () Less than 40% () less than 20% () more than 40% () less than 30% ()

Q. How is your experience in share market? Very good () Bad () good very bad () () neutral ()

Q. Who is your current broker? Nirmal bang Angel () () karvy () sherkhan () Indiabulls () other ()

Q. Are you satisfied with brokerage charge you pay? HIGHLY SATISFIED () SATISFIED () NEUTRAL ()

DISSATISFIED

()

HIGHLY DISSATISFIED

()

Q. Are you satisfied with additional services of your broker ? HIGHLY SATISFIED () SATISFIED () NEUTRAL ()

DISSATISFIED

()

HIGHLY DISSATISFIED

()

Q. Are you satisfied with research suggestions of your broker? HIGHLY SATISFIED () SATISFIED () NEUTRAL ()

DISSATISFIED

()

HIGHLY DISSATISFIED

()

Q. How promptly your calls are received by executives? VERY QUICKLY () QUICKLY () MODERATELY ()

LATE

()

VERY LATE

()

Q. How satisfied are you with your relation ship manager? HIGHLY SATISFIED () SATISFIED () NEUTRAL ()

DISSATISFIED

()

HIGHLY DISSATISFIED

()