INTRODUCTION

SECURITIES EXCHANGE BOARD OF INDIA SEBI was setup in 1988 & become a statuary organization from JANUARY 1992. It was given a statuary status for healthy regulation of capital markets. Office of controller of capital issues(CCI) was abolished & the companies were to approach market directly subject to SEBI guidelines relating to disclosures & other measures of investors protection. This led to removal of hurdles i.e. getting permission from CCI.MRTP commissioner company law board, ministry of finance, industrial tribunal registration of companies etc. SEBI PRINCIPLES TASKS ARE TO: Regulate the business in stock exchanges any other securities markets. Promote & regulate the working of capital market intermediates as Promote & regulate self-regulatory organizations. Promote investor's education & training of intermediaries of securities markets, Prohibit insider trading in securities. Prohibit fraudulent & unfair trade practices in securities markets. Perform such other functions as may be prescribed. well as working of mutual funds.

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SEBI FOOT MARKS: SEBI has taken several steps since its establishment to reform the securities markets.
All companies, which access the capital markets. Are free to price their

issue. Subject to certain conditions. Restriction, rights & bonus issues have been removed.

Issues are required to meet SEBI guidelines for disclosure &

The minimum application has been reduced to Rs.200/- from earlier level

investor protection. of Rs 5000/-.

Number of collection centers has been issued with regard to public &

rights issue. Capital gains through investment in new issues are exempted from taxes. Underwriting of issues has been made optional. THE BY-LAWS OF THE STOCK EXCHANGES Bargains-Spot / hand / special delivers / margins. Clearings for settlements of bargains. Delivery of securities Brokerage &contract notes. Dealing by members.
Rights & liabilities of members & constituents.

Arbitration between members.

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 Defaults. Prohibition & penalties. STOCK EXCHANGE STANDS FOR S T 0 C K E X C H A N G E Securities provider for investor Tax benefits, planning & exemptions Optimum return on investments Caution approach Knowledge of market Eligibility for accruals X change of securities Cyclopedia of listed companies High yield Authentic information New entrepreneur's encouraged Guidance to investors & companies Equity cult

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ORGANIZATION OF STOCK EXCHANGES STOCK EXCHANGES are formed under the norms of

securities contract (regulation) act 1956,stock exchange may be:1). Voluntary non-profit making associations Ex: Bombay, Indore 2). Public limited companies Ex: Calcutta, Delhi, Bangalore 3). Company Ltd, by guarantees Ex: Madras, Jaipur, Hyderabad & Pune Central government prescribes & approves the rules, regulations & by laws of recognized stock exchanges. THE SECURITIES REGULATION ACT 1956 A bill was introduced in the DECEMBER 1954 prepared Issue Act. by the

Gorawall Committee & recommended on the lines of functioning of Capital

Industry profile;
India has well established securities market with a long history of organized trading. The earliest recorded capital market dealing in India were transaction in loan stocks of the east India company towards the end of the 18th century by 1830, a wide range of bank & cotton mill securities were being traded in Bombay & Calcutta. In Bombay & Calcutta business passed in the shares of the bank like the Commercial Banks, Charted Mercantile Bank, Oriented Bank & Bank of Bombay.
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The enactment of the company act 1850 ? which introduced in the concept of limited liability to India, served to stimulate activity in the securities markets. The first Stock Exchange in India was set up in 1875 in Bombay known as "DALAL STREET & BROKERS ASSOCIATION". It is now known as BSE . From 1956 to 1980, the Indian stock market grew at effecting the securities market during this period was the enactment of the Foreign Exchange Regulation Act. Under FERA, the Indian corporations with more than 40% foreign share holdings were generally required to reduce their foreign ownership. As a result, many such corporations offered equity to the Indian Public. Between 1980-1999, Indian Stock Exchange witnessed a total revamp, automation, mobilization & an the trading & strict surveillance were the hall market of this period. WHAT IS STOCK EXCHANGE ? The SE is an organization market for purchase & sale of listed Industrial & Financial Securities. The securities traded on stock Exchanges include Share & Debentures of Public Limited companies, Government Securities etc,. According to securities contract (regulation) act 1956 "Stock Exchange is an association, organization or body of individuals, whether incorporated of act, established for the purchase of assisting, regulation & controlling business in buying, selling & dealing securities.
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NATIONAL STOCK EXCHANGE The NSE was incorporated in Nov 1992 with an equity capital of Rs. 25 Crores. The International securities consultancy (ISC) of Hong Kong has helped in setting up NSE. ISC has prepared the detailed business plans and installation of hardware and software systems. The promotions for NSE were financial institutions, insurances companies, banks and SEBI capital market ltd, Infrastructure leasing and financial services ltd and stock holding corporation ltd. It has been set up to strengthen the move towards professionalisation of the capital market as well as provide nation wide securities trading facilities to investors. NSE is not an exchange in the traditional sense where brokers own and manage the exchange. A two tier administrative set up involving a company board and a governing aboard of the exchange is envisaged. NSE is a national market for shares PSU bonds, debentures and government Securities since infrastructure and trading facilities are provided. NSE-NIFTY: The NSE on April 22, 1996 launched a new equity Index. The NSE-50. The new Index which replaces the existing NSE-100 Index, is expected to serve as an appropriate Index for the new segment of futures and options. "Nifty "means National Index for Fifty Stocks. The NSE-50 comprises 50 companies that represent 20 broad Industry groups with an aggregate market capitalization of around Rs. 1,70,000 crs.

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All companies included in the Index have a market capitalization in excess of Rs 500 crs each and should have traded for 85% of trading days at an impact cost of less than 1.5%. The base period for the index is the close of prices on Nov 3, 1995, which makes one year of completion of operation of NSE's capital market segment. The base value of the Index has been set at 1000. NSE - MIDCAP INDEX: The NSE midcap Index or the Junior Nifty comprises 50 stocks that represents 21 board Industry groups and will provide proper representation of the midcap segment of the Indian capita! Market. All stocks in the Index should have market capitalization of greater than Rs. 200 Crores and should have traded 85% of the trading days at an impact cost of less 2.5%. The base period for the index is Nov 4, 1996, which signifies two years for completion of operations of the capital market segment of the operations. The base value of the Index has been set at 1000. Average daily turn over of the present scenario 258212 (Laces) and number of average daily trades 2160 (Laces). At present, there are 24 stock exchanges recognized under the securities contract (regulation) Act, 1956. They are

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NAME OF THE STOCK EXCHANGE Bombay stock exchange, Ahmadabad share and stock brokers association Calcutta stock exchange association Ltd, Delhi stock exchange association Ltd, Madras stock exchange association Ltd, Indore stock brokers association, Bangalore stock exchange, Hyderabad stock exchange, Cochin stock exchange, Pune stock exchange Ltd, HP stock exchange association Ltd, Ludhiana stock exchange association Ltd, Jaipur stock exchange Ltd, Gauhathi stock exchange Ltd, Mangalore stock exchange Ltd, Maghad stock exchange Ltd, Patna, Bhubaneshwar stock exchange association Ltd, Over the counter exchange of India, Bombay, Saurasthra Kutch stock exchange Ltd, Vsdodara stock exchange Ltd, Coimbatore stock exchange Ltd, The Meerut stock exchange Ltd, National stock exchange Ltd, Integrated stock exchange,

YEAR 1875 1957 1957 1957 1957 1958 1963 1943 1978 1982 1982 1983 1983-84 1984 1985 1986 1989 1989 1990 1991 1991 1991 1991 1999

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BOMBAY STOCK EXCHANGE This stock exchange, Mumbai, popularly known as "BSE" was established in 1875 as" The Native share and stock brokers association", as a voluntary non-profit making association. It has an evolved over the years into its present status as the premiere stock exchange in the country. It may be noted that the stock exchanges the oldest one in Asia, even older than the Tokyo Stock exchange which was founded in 1878. The exchange, while providing an efficient arid transparent market for trading in securities, upholds the interests of the investors an4 ensures redressed of their grievances, whether against the companies or its own member brokers. It also strives to educate and enlighten the investors by making available necessary informative inputs and conducting investor education programmes. A governing board comprising of 9 elected directors, 2 SEBI nominees, 7 public representatives and an executive director is the apex body, which decides the policies and regulates the affairs of the exchange. The Executive director as the chief executive officer is responsible for the day today administration of the exchange. The average daily turnover of the exchange during the year 2000-01 (April-March) was Rs 3984.19 crores and average number of daily trades 5.69 lacs. However the average daily turn over of the exchange during the year 2001-02 has declined to Rs. 1244.10 crs and number of average daily trades during the period to 5.17 lacs. The average daily turn over of the exchange during the year 2002-03 has declined and number of average daily trades during the period is also decreased.
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The Ban on all deferral products like BLESS AND ALBM in the Indian capital markets by SEBI w.e.f July 2, 2001, abolition of account period settlements, introduction of compulsory rolling settlements in all scripts traded on the exchanges w.e.f Dec 31,2001, etc., have adversely impacted the liquidity and consequently there is a considerable decline in the daily turn over at the exchange. The average daily turn over of the exchange present scenario is 110363 (Laces) and number of average daily trades 1057(Laces). BSE INDICES: In order to enable the market participants, analysts etc., to track the various ups and downs in the Indian stock market, the Exchange has introduced in 1986 an equity stock index called BSE-SENSEX that subsequently became the barometer of the moments of the share prices in the Indian stock market. It is a "Market capitalization-weighted" index of 30 component stocks representing a sample of large, well-established and leading companies. The base year of Sensex is 1978-79. The Sensex is widely reported in both domestic and international markets through print as well as electronic media. Sensex is calculated using a market capitalization weighted method. As per this methodology, the level of the index reflects the total market value of all 30-component stocks from different industries related to particular base period. The total market value of a company is determined by multiplying the price of its stock by the number of shares outstanding. Statisticians call an index of a set of combined variables (such as price and number of shares) a composite Index.

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An Indexed number is used to represent the results of this calculation in order to make the value easier to work with and track over a time. It is much easier to graph a chart based on Indexed values than one based on actual values world over majority of the well-known Indices are constructed using "Market capitalization weighted method ".
In practice, the daily calculation of SENSEX is done by dividing the

aggregate market value of the 30 companies in the Index by a number called the Index Divisor. The Divisor is the only link to the original base period value of the SENSEX. The Divisor keeps the Index comparable over a period of time and if the reference point for the entire Index maintenance adjustments. SENSEX is widely used to describe the mood in the Indian Stock markets. Base year average is changed as per the formula. New base year average = old base year average*(new market value/old market value). Indian Merchants Chamber has recommended to Prime Minister Manmohan Singh that the Union Government should focus its attention on two critical areas viz. infrastructure and manpower development "if we are to sustain the present growth rate in excess of 9% per annum." IMC President Nayan Patel cited the Planning Commission's strong views that the demand for trained professionals in important sectors such as telecom, retail, hospitality, financial services, information technology and related fields was growing at a whopping rate of 20% to 25% per annum, and that the nonavailability of appropriately skilled manpower was hampering the growth of these sectors. "In the IT industry alone, which has set a $60 bn annual export target by 2009-10, an estimated 8.5 lakh software professionals and 1.4 mn knowledge
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services professionals are required. The availability at present hovers around the one mn mark. As the adequately trained skilled professionals were a prerequisite for accelerating and sustaining the growth rate, IMC would recommend that the education system, particularly that concerning 'value-added vocational education & training', should be freed from outdated and obsolete rules and given a greater autonomy. The IMC President drew the Prime Minister's attention to the pathbreaking recommendations on vocational education made recently by the Knowledge Commission. India's traditional neglect of the vocational education and its undue emphasis on general education not only proved to be a drag on economic growth, but also spawned millions of educated 'unemployable' men in the productive age group 18-50. According to him "Of the 2,945 vocational courses offered round the world, only 153 are recognized in India, indicating the woeful backwardness of India in this regard. Also only 2% of Indian work force is vocationally qualified as against 65% in Germany and between 75% and 80% in US, EU and China". The present vocational education system has major lacunae of that the courses were inflexible and standardized, were unable to identify the training needs and to develop training contents in tune with specific nature of the industry. Vocational education was no responsive to the market demand. The vocational education system should be unfettered, given a greater autonomy, and the outdated rules made by the HRD Ministry be removed.
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As competition brings out the best in people and in institutions, foreign universities should be allowed to enter the Indian education sector. India needed more vocational institutes with curricula suited to the needs of the time. "Potters, blacksmiths and nurses are not enough for our rapidly growing economy; relevant contemporary vocational courses in management, tourism, teachers' training, cooking, airhostesses and salesmanship are need of time." Experts from industries should be involved in the process of design and development of curriculum. The Chamber had developed an elaborate model to tap the synergies between the private sector and education, and to bridge the gap between the two. According to the model, the IMC proposed to play a facilitator's role and would bring together the industry, academicians, training institutes and financial intermediaries. The industry, academicians and training institutes would together decide the curriculum and training methodology. At the end, IMC with participating industry would accredit successful students, enabling them to effectively get employed. IMC would also offer mentorship and advisory services to those students who had the necessary entrepreneurial aptitudes, help them evolve business development plans, arrange tie-up with financial intermediaries and to set up their own businesses.

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COMPANY PROFILE
INDIA INFOLINE GROUP The India Info line group, comprising the holding company, India Info line Limited and its wholly-owned subsidiaries, straddle the entire financial services space with offerings ranging from Equity research, Equities and derivatives trading, Commodities trading, Portfolio Management Services, Mutual Funds, Life Insurance, Fixed deposits, GoI bonds and other small savings instruments to loan products and Investment banking. India Info line also owns and manages the websites www.indiainfoline.com and www.5paisa.com The company has a network of 596 branches spread across 345 cities and towns. It has more than 5,00,000 customers. India Info line Ltd India Info line Limited is listed on both the leading stock exchanges in India, viz. the Stock Exchange, Mumbai (BSE) and the National Stock Exchange (NSE) and is also a member of both the exchanges. It is engaged in the businesses of Equities broking, Wealth Advisory Services and Portfolio Management Services. It offers broking services in the Cash and Derivatives segments of the NSE as well as the Cash segment of the BSE. It is registered with NSDL as well as CDSL as a depository participant, providing a one-stop solution for

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clients trading in the equities market. It has recently launched its Investment banking and Institutional Broking business.

A SEBI authorized Portfolio Manager; it offers Portfolio Management Services to clients. These services are offered to clients as different schemes, which are based on differing investment strategies made to reflect the varied risk-return preferences of clients.

India Info line Media and Research Services Limited. The content services represent a strong support that drives the broking, commodities, mutual fund and portfolio management services businesses. Revenue generation is through the sale of content to financial and media houses, Indian as well as global.

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It undertakes equities research which is acknowledged by none other than Forbes as 'Best of the Web' and 'a must read for investors in Asia'. India Info lines research is available not just over the internet but also on international wire services like Bloomberg (Code: IILL), Thomson First Call and Internet Securities where India Info line is amongst the most read Indian brokers. India Info line Commodities Limited. India Info line Commodities Limited is engaged in the business of commodities broking. Our experience in securities broking empowered us with the requisite skills and technologies to allow us offer commodities broking as a contra-cyclical alternative to equities broking. We enjoy memberships with the MCX and NCDEX, two leading Indian commodities exchanges, and recently acquired membership of DGCX. We have a multi-channel delivery model, making it among the select few to offer online as well as offline trading facilities. India Info line Marketing & Services India Info line Marketing and Services Limited is the holding company of India Info line Insurance Services Limited and India Info line Insurance Brokers Limited. (a) India Info line Insurance Services Limited is a registered Corporate Agent with the Insurance Regulatory and Development Authority (IRDA). It is the largest Corporate Agent for ICICI Prudential Life Insurance Co Limited, which is India's largest private Life Insurance Company. India Info line was the first corporate agent to get licensed by IRDA in early 2001.
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(b) India Info line Insurance Brokers Limited India Info line Insurance Brokers Limited is a newly formed subsidiary which will carry out the business of Insurance broking. We have applied to IRDA for the insurance broking licence and the clearance for the same is awaited. Post the grant of license, we propose to also commence the general insurance distribution business. India Info line Investment Services Limited Consolidated shareholdings of all the subsidiary companies engaged in loans and financing activities under one subsidiary. Recently, Orient Global, a Singapore-based investment institution invested USD 76.7 million for a 22.5% stake in India Info line Investment Services. This will help focused expansion and capital raising in the said subsidiaries for various lending businesses like loans against securities, SME financing, distribution of retail loan products, consumer finance business and housing finance business. India Info line Investment Services Private Limited consists of the following step-down subsidiaries. (a) India Info line Distribution Company Limited (distribution of retail loan products) (b) Money line Credit Limited (consumer finance) (c) India Info line Housing Finance Limited (housing finance) The Management Mr. Nirmal Jain Chairman & Managing Director India Info line Ltd.
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Nirmal Jain, MBA (IIM, Ahmedabad) and a Chartered and Cost Accountant, founded Indias leading financial services company India Info line Ltd. in 1995, providing globally acclaimed financial services in equities and commodities broking, life insurance and mutual funds distribution, among others. Mr. Jain began his career in 1989 with Hindustan Levers commodity export business, contributing tremendously to its growth. He was also associated with Inquire-Indian Equity Research, which he co-founded in 1994 to set new standards in equity research in India. Mr. R Venkataraman Executive Director India Infoline Ltd R Venkataraman, co-promoter and Executive Director of India Info line Ltd., is a B. Tech (Electronics and Electrical Communications Engineering, IIT Kharagpur) and an MBA (IIM Bangalore). He joined the India Info line board in July 1999. He previously held senior managerial positions in ICICI Limited, including ICICI Securities Limited, their investment banking joint venture with J P Morgan of USA and with BZW and Taib Capital Corporation Limited. He was also Assistant Vice President with G E Capital Services India Limited in their private equity division, possessing a varied experience of more than 16 years in the financial services sector. The Board of Directors Apart from Nirmal Jain and R Venkataraman, the Board of Directors of India Infoline Ltd. comprises:

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Mr Nilesh Vikamsey Independent Director India Infoline Ltd. Mr. Vikamsey, Board member since February 2005 - a practising Chartered Accountant and partner (Khimji Kunverji & Co., Chartered Accountants), a member firm of HLB International, headed the audit department till 1990 and thereafter also handles financial services, consultancy, investigations, mergers and acquisitions, valuations etc; an ICAI study group member for Proposed Accounting Standard 30 on Financial Instruments Recognition and Management, Finance Committee of The Chamber of Tax Consultants (CTC), Law Review, Reforms and Rationalization Committee and Infotainment and Media Committee of Indian Merchants Chamber (IMC) and Insurance Committee and Legal Affairs Committee of Bombay Chamber of Commerce and Industry (BCCI). Mr. Vikamsey is a director of Miloni Consultants Private Limited, HLB Technologies (Mumbai) Private Limited and Chairman of HLB India. Mr Sat Pal Khattar Non Executive Director India Infoline Ltd. Mr Sat Pal Khattar, - Board member since April 2001 - Presidential Council of Minority Rights member, Chairman of the Board of Trustee of Singapore Business Federation, is also a life trustee of SINDA, a non profit body, helping the under-privileged Indians in Singapore. He joined the India Info line board in April 2001. Mr Khattar is a Director of public and private companies in

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Singapore, India and Hong Kong; Chairman of Goochland Limited listed in Singapore and its parent Group Ltd listed in Hong Kong, a leading property company of Singapore, China and Malaysia. A Board member of India Info line Ltd, Gateway Disrepairs Ltd both listed and a number of other companies he is also the Chairman of the Katter Holding Group of Companies with investments in Singapore, India, UK and across the world. Mr Kranti Sinha Independent Director India Infoline Ltd. Mr. Kranti Sinha Board member since January 2005 completed his masters from the Agra University and started his career as a Class I officer with Life Insurance Corporation of India. He served as the Director and Chief Executive of LIC Housing Finance Limited from August 1998 to December 2002 and concurrently as the Managing Director of LICHFL Care Homes (a wholly owned subsidiary of LIC Housing Finance Limited). He retired from the permanent cadre of the Executive Director of LIC; served as the Deputy President of the Governing Council of Insurance Institute of India and as a member of the Governing Council of National Insurance Academy, Pune apart from various other such bodies. Mr. Sinha is also on the Board of Directors of Hindustan Motors Limited, Larsen & Toubro Limited, LICHFL Care Homes Limited, Gremach Infrastructure Equipments and Projects Limited and Cinemax (India) Limited.

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Mr Arun K. Purvar Independent Director India Infoline Ltd. Mr. A.K. Purvar Board member since March 2008 completed his Masters degree in commerce from Allahabad University in 1966 and a diploma in Business Administration in 1967. Mr. Purwar joined the State Bank of India as a probationary officer in 1968, where he held several important and critical positions in retail, corporate and international banking, covering almost the entire range of commercial banking operations in his illustrious career. He also played a key role in co-coordinating the work for the Bank's entry into the field of insurance. After retiring from the Bank at end May 2006, Mr. Purwar is now working as Member of Board of Governors of IIM-Lucknow, joined IIM Indore as a visiting professor, joined as a Hon.-Professor in NMIMS and he is also a member of Advisory Board for Institute of Indian Economic Studies (IIES), Waseda University, Tokyo, Japan. He has now taken over as Chairman of India Venture Advisors Pvt. Ltd., as well as IL & FS Renewable Energy Limited. He is also working as Independent Director in leading companies in Telecom, Steel, Textiles, Auto parts, Engineering and Consultancy.

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FINANCIAL SYSTEM IN INDIA; A set of components that interact to accomplish some purpose. Financial System: Facilitates provisioning for and trading in liquidity and acts as a conduit for transfer of financial resources from net savers to borrowers. Money is a means that facilitates exchange of goods and services in the economy. Thus stock money represents purchasing power. There can be divergence in terms of timing of possessing the stock of money. Some people have purchasing power now but want purchasing power later. Others expect to have purchasing power later but want it now. It is easy to understand if you look to your lifecycle pattern of savings. When you start earning initially your earning levels are less than your expenditure as you go ahead with marriage, acquiring a house and durables etc. With borrowed money, later you pay. By the middle age you payup your loans and your expenditure is relative less compared to your earnings. Finally when you attain superannuation once again you earnings fall short of your expenditure and thus draw upon the savings you had during middle age. Thus your life-cycle pattern of savings-barrowing, saving and drawing on savings highlights the need for trade purchasing power. This mismatch in timing of purchasing power results in exchange of case and credit-provisioning of liquidity and trading in liquidity. On the one hand, we have savers and wealth holders with an excess of purchasing power now that they wish to trade for purchasing power in the future. On the other hand, we have businesses and households needing purchasing power now to finance investments. Both groups stand to gain from trade. However, provisioning of liquidity and trading in liquidity are based on promise.

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When you are borrowing money you make a promise to pay the priceinterest/return-and principal back. You are entering in to a contract with the party that lends you money. Many a times the promises are fulfilled. His purchasing power is adversely affected. This gives rise to risk. Thus, while provisioning for liquidity and trading in liquidity one has to keep in mind the associated risks also. There are certain agencies, instruments and mechanisms that facilitate all this and they constitute and financial system. Financial system, thus, facilitates provisioning for and trading in liquidity. Money and monetary assets are traded in the financial system. It basically deals with mobilization of savings and channelises these savings into productive activity. The financial system, thus, acts as a conduit for transfer of financial resources from net savers to borrowers. The objective is to supply funds to various sectors and activities of the economy in ways that promote the fullest possible utilization of resources without facilitates lending, payments and trade in risk. In the process, a financial system addresses to the following difficulties associated with provisioning for and trading in liquidity: The cost of acquiring and processing information The costs of negotiating and writing a contract The incentive problems inherent in all lending arrangements The costs of establishing safeguards and monitoring borrower compliance Conflicting interests over liquidity. Like any other system the financial system too, has certain interacting components/elements. Financial markets, institutions and instruments are the components of financial system.

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FINANCIAL MARKETS: Financial markets are the domains where financial assets are traded. They facilitate the exchange of liquidity preferences of the suppliers of fund and the borrowers. The forms of financial assets could be cash, credit, lending and borrowing or claims on money. These transactions could be of short-term or long-term maturity. Short-term maturity claims are traded in money markets and long-term maturity claims are traded in capital markets. Thus, Money Market and Capital Market are the two constituents of the financial markets. Money market refers to all transactions in near money such as short-term claims on banks, financial institutions and corporate sector. These include transactions in inter-bank call money market, treasury bills issued by the government (gilts market) and commercial bills issued by the private corporate sector (Bills Market). The duration of the claims will be less than one year. This market establishes the link between the Reserve Bank of India (RBI) and banks and policy of RBI is felt in this market first before percolating to other markets. Financial assets with maturities beyond one year are traded in capital market. Capital markets deal with medium and long-term financial assets. Following are the functions capital markets. To provide and allocate medium and long term funds to firms with profitable investment opportunities.

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 To offer an avenue of liquidity for individuals to invest current income or borrow against future income thereby achieve their preferred time pattern of consumption. To provide a means for transferring risk among the parties. The financial assets traded in the capital market may be categorized into marketable and non-marketable securities. Marketable securities are those that are standardized and are traded in well organized markets, whereas nonmarketable securities have to be held till maturity and are not freely transferable as the case with the marketable securities. Government Securities, Public Sector Bonds, Mutual Fund Units, and Corporate Securities are marketable securities. Bank deposits, corporate deposits, Loans and Advances of the banks and other financial institutions and Post office deposits and certificates are non-marketable securities. In the case of marketable securities the markets are further identified as primary and secondary markets. Primary markets imply that the securities are offered for the first time to the investors and the key is that these securities absorb new funds for the coffers of the issuers. The issuer may be a brand type for the issuer or additional amounts of a security used frequently in the past. The secondary markets are the ones where the existing securities are simply being transferred among investors and the issuers are not reviving any new funds. After their purchase in the primary market, securities are traded subsequently in the secondary markets. Thus, these markets offer the facility of liquidity and transferability to the existing securities. The financial system makes it easier to trade. Financial system facilitates provisioning for and trading in liquidity. It facilitates lending, payments and
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trade in risk. Financial markets, institutions and instruments are traded. Money Market and Capital Market are the two constituents of the financial markets. RBI, public and private sector banks, and Discount and Finance House (DFHI), in the money markets, and financial institutions like IDBI, IFCI, ICICI, Insurance companies like GIC, LIC, and mutual funds like UTI etc., in the capital market, are the institutions participating in the financial markets. Government Securities, Public Sector Bonds, Mutual Fund Units, and Corporate Securities are marketable securities. Bank deposits, corporate deposits, Loans and Advances of the banks and other financial institutions and Post office deposits and certificates are non-marketable securities. Marketable securities initial public offer is made in the primary market and subsequently traded by the holders in the secondary market. Indian capital market is witnessing a sea change in the wake of liberalization in terms of competition and innovation.

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INTRODUCTION OF ONLINE TRADING Introduction: Imagine being able to control all your financial investments form the privacy of your own home. Sitting in front of a computer, with one click of the mouse you just invested thousands about thousands of dollars, with a second click you just sold them for a fraction of the cost you would usually pay in commissions. You might be saying to yourself, this is to good to be true it must be some type of mirage, but it is not Welcome to the new age of investing that is known as Online Stock Trading. BODY: I. Online Stock Trading while seemingly a new phenomenon actually had its beginnings many years ago. It is just the availability of inexpensive, user friendly computer technology and equipment that has led to its explosive growth.
A. The idea of Online Trading blossomed from the mind of Prodigy

Executive (ISP) Orrin Beissingor in 1997 and has boomed into a multi billion dollar industry.
Just 12 years ago Beissingor took his idea of online trading and

with the help of DLJ Corp. Started an online trading service that did just a few trades a day using a phone, email and a printer. Today that brokerage does 20,000 trades a day and the rest of the online trading companies process almost 500,000 trades daily.

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 According to the Securities industry association, 12 million

households have online accounts or about 12.5% of people with Internet access.
By 2003 it is expected that 41% of all households will have

online brokerage accounts with assets totaling more then 3 trillion dollars. That is up from the current 500 billion dollars that is currently held in online accounts.

4 Experts say their is no real profile or median to online

traders as their are with most activities. It runs the gamut from young to old, white collar to blue collar, everyone is involved. This precise reason is why experts believe a revolution in financial investing is taking place. B. With the availability of the technology getting started is as easy as 1-2-3. The first step is to have access to a computer that is Internet compatible and also be subscribed to an online service provider so you can get online.
The 2nd step is to sign up with one of the many online brokerages.

You might want to check your normal brokers company, if you have one, since they might already have a service online.
The 3rd step is to familiarize yourself with your online brokers

rules and policies. A good place to start is the brokerage companies demonstration page. This page will walk you through the steps of the online trading process at your particular online brokerage.
The NASD suggests no matter what, start out slow until you are

comfortable and up to speed with the entire online trading process.

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II. With the Governments deregulation of commissions and the loss of big brokerages monopoly over the stock market. Financial freedom and decision-making have been handed back to the individual investor in many forms, one of the most prominent being online stock trading. This freedom has led to many advantages and disadvantages for the investor and the businesses involved. A. The Pro's run the gamut, but most investors state the following Control,. B. Convenience, and Cost Savings.
SEC

commissioner

Laura

Unger

cites

the

"Investor

Empowerment Theory" this is the belief that online trading gives investors better access and power, thus making them more aware and in control of their financial future.
With the Internet being open 24 hours a day speed and

convenience are on the investors side. Any time day or night you can examine your account, place an order for execution when the market opens or just search for future investing ideas.
The Securities Industry states the # 1 reason why 53 % of

people who are online have accounts is commission price. Why pay hundreds of dollars for a commission on a stock trade when they are as low as $5 online. C. The SEC Commissioner also cautions investors that online stock trading and the technology involved still have some drawbacks to consider.
On any given high volume day in the stock market, online

brokers computer technology might fail. This will leave you

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high and dry unable to reach him, 22% of all online account holders voiced just such complaints to the industry. Most online investors also search the Internet for investing ideas. This leaves inexperienced investors vulnerable to unscrupulous operators and fraudulent tips. Researchers and Industry watchdogs alike have cautioned about the addict ability of online trading. With its speed and ease of use they compare it in some regards to gambling. Their are many things to consider before opening up an online account. These are just a few of the many things I urge you to look into. And this is where we start coming to an end. ONLINE TRADING ADVANTAGES I.
II.

Trading online has truly revolutionized the stock markets. A main benefit of trading online is speed. When you enter an order online, your order gets into the market as quickly as the Internet will take it (although your brokerage firm's computers may slow it down if they want to make sure the order is reasonable).

III.

There is no need to dial up your broker, wait to speak with somebody, and have him or her enter the order on their computer. You are eliminating several steps and saving time getting your order to market when you trade online. If speed wasn't enough to entice you, by cutting out the middleman you'll pay a lower commission. Brokers are well-paid to perform their services. If you don't need their services, you can just enter stock trading orders on your own.

IV.

V.

VI.

VII. Most online brokerages will take online orders for a commission
Page No. 30

of about $5 to $40 US. VIII. As you can imagine, the convenience of online trading attracts many investors. IX. You can enter trade orders day or night, from anywhere in Cyber space. X. You can trade after hours, or leave the order so it'll hit the market first thing in the morning. This gives you the ability to trade on your own terms. XL You don't have to give anybody permission to enter the order -it's done when you want it done.
XII.

You're not entirely on your own when you trade online. There are a lot of tools out there to help you make decisions on what to buy or sell, and when.

XIII. The Internet is full of advice, free technical analysis tools, and commentary. XIV. You can formulate your own strategy and run your investments yourself. Broker Advantages Despite the popularity of online trading, not everybody uses the Internet to trade stocks. A live broker offers services that you just can't get online the benefits of using a broker, and also tells you if you might be better of trading online. A broker can do everything from making all your stock trading decisions for you, to giving you a little advice on what to buy or sell. It depends on your relationship and the broker's services.

Page No. 31

If you want some investing help, or if you just want somebody else to deal with everything, using a broker might be right for you. Brokers are stock market professionals. They watch the market and deal with customers like you every day. Therefore, by hiring a broker you may get access to expertise you don't have because brokers monitor the markets constantly, they may be more active in researching good stocks than you have time for. Brokers keep in touch with a network of other professionals, so news and knowledge constantly come their way. This is a useful resource. Finally, your broker may offer services other than just trading stocks. If you want, you can find a broker that will manage your taxes, insurance, estate, and business. The personal attention available from a broker who knows your full financial situation is very valuable. Now that you know how a broker can benefit you, it's also important to consider the drawbacks of using a broker. Broker Disadvantages While stock brokers offer valuable services to their clients, there are some drawbacks to using a broker. Always remember that your stock broker is a salesperson. The broker gets paid though one or more of the following methods:
1. Taking a percentage of your assets

under management,

making

stock trades (commission), taking a flat fee.

Page No. 32

2. Of course brokers offer valuable services that nobody would provide for

free, but make sure you get what you're paying for. Because stock brokers get paid through the methods above, it is important to watch out for some common ways they may take advantage of you.
3. However, I must stress that the brokerage industry is highly regulated,

and most brokers act with integrity. Nonetheless, it is best to be aware of the risks.
4. First, make sure you get the attention you deserve: if your broker is

constantly looking for new clients, he or she can't spend much time following the markets and monitoring your account.
Get a feel for how much time your broker spends marketing and how

much attention your assets will receive.

If your broker gets paid a commission for trading, keep in mind that

there may be a conflict of interest.

Your broker may trade excessively to generate high commissions

(this is called "churning"). Make sure your broker can consistently justify any and all stock trades.
Another pitfall of using a broker is that it may be hard to get a hold of

your broker in a timely fashion.

If you decide to make a trade in your account, you have to get your

broker on the phone, and have the broker enter your order.

Page No. 33

 Think of the delay involved from your decision to trade to the order's actual entry.

If you have a fear of missing the boat you may opt for online trading.

Also, because brokers have a variety of clients and may offer a variety of services, your broker may be a generalist. That is fine for general investing, but you may want to focus your investments (for example, perhaps you're interested in technology stocks or international stocks).

Find out about your broker's background and interests to see if he or Finally, live brokers are more expensive than online brokers. Their

she is a good match.

presence and personal attention command a price. You need to make sure that the price is worth it to you.
If you decide to make a trade in your account, you have to get your

broker on the phone, and have the broker enter your order. Think of the delay involved from your decision to trade to the order's actual entry.

If you have a fear of missing the boat you may opt for online trading.

Also, because brokers have a variety of clients and may offer a variety of services, your broker may be a generalist. That is fine for general investing, but you may want to focus your investments (for example, perhaps you're interested in technology stocks or international stocks).
i)

Find out about your broker's background and

interests to see if he or she is a good match. j) Finally, live brokers are more expensive than online brokers. Their presence and personal attention command a price. You need to make sure that the price is worth it to you.

Page No. 34

Emotion is often Cited as one of the biggest flaws of individual investors. Investors who are unable to cope with losses second guess their decisions and end up losing money. By strictly following a predeveloped system, system traders can forgo the need to make any decisions: After the system is developed and established, trading by means of the system is not empirical since it is automated By cutting down on these human inefficiencies system traders can increase profits. IT CAN SAVE A LOT OF TIME Once an effective system is developed and optimized. there is little to no effort necessary on the part of the trader. Computers are often used to automate not only the signal generation, but also the actual trading, so the trader is freed from spending time on analysis and making trades. Need all of the work done for you? Some companies sell trading systems that they have developed. Other companies will give you the signals generated by their internal trading systems for a monthly fee. Be careful, though-many of these companies are fraudulent. Take a close look at when the results they boast about were taken. After all, it's easy to win in the past. Look for companies that offer a trial, which lets you test out the system in real-time. ADVANTAGES We've looked at the main advantages of working with a trading system, but the approach also has its drawbacks. Trading systems are complex
Page No. 35

This is their biggest drawback. In the developmental stages, trading systems demand a solid understanding of technical analysis, the ability to make empirical decisions, and a thorough knowledge of how parameters work. But even if you are not developing your own trading system, it's important to be familiar with the parameters that make up the one you are using. Acquiring all of these skills can be a challenge. Make realistic assumptions and effectively employ the system System traders must make realistic assumptions about transaction costs. These will consist of more than commission coststhe difference between the execution price and the fill price is a part of transaction costs. Bear in mind, it is often impossible to test systems accurately, causing a degree of uncertainty will bringing the system live. Problems that occur when simulated results differ greatly from actual results are known as "slippage." Effectively dealing with slippage can be a major roadblock to deploying a successful system. Development can be a time-consuming task A lot of time can go into developing a trading system to get it running and working properly. Devising a system concept and putting it into practice involves plenty of testing, which takes a while. Historical back testing takes a few minutes; however, back testing alone is not sufficient. Systems must also be paper traded in real time in order to ensure reliability. Finally, slippage may cause traders to make several revisions to their systems even after deployment. DO THEY WORK?

Page No. 36

There are numerous Internet scams related to system trading, but there are also many legitimate, successful systems. Perhaps the most famous example is the one developed and implemented by Richard Dennis and Bill Elkhart, who are the Original Turtle Traders. In 1983, these two had a dispute over whether a good trader is born or made. So, they took some people off the street and trained them based on their now-famous Turtle Trading System. They gathered 13 traders and ended up making 80% annually over the next four years. Bill Elkhart once said, "Anyone with average intelligence can learn to trade. This is not rocket science. However, it is much easier to learn what you should do in trading than to do it." Trading systems are becoming more and more popular among professional traders, fund managers, and individual investors alike-perhaps this is a testament to how well they work. DEALING WITH SCAMS When looking to purchase a trading system, it can be difficult to find a trustworthy business. But most scams can be spotted by common sense. For example, a guarantee of 2,500% yearly is clearly outrageous as it promises that with only $5,000 you could make $125,000 in one year... and then through compounding for five years, $48,828,125,000!

If this were true, wouldn't the creator trade his or her way to become a billionaire? Other offers, however, are more difficult to decode, but a common way to avoid scams is to seek out systems that offer a free trial. That way you can test the system yourself. Never trust blindly the results boasted by

Page No. 37

the business! It is also a good idea to contact others that have used the system, and see if they can a firm its reliability and profitability. CONCLUSION Developing an effective trading system is by no means an easy task. It requires a solid understanding of the many parameters available, the ability to make realistic assumptions, and the time and dedication to develop the system. However, if developed and deployed properly, a trading system can yield many advantages. It can increase efficiency, free up time and, most importantly, increase your profits. MANUAL a. b. c. Of or relating to the hands: manual skill. Done by, used by, or operated with the hands. Employing human rather than mechanical energy; manual labor.

TRADING 1. 2. 3. To engage in buying and selling for profit. To make an exchange of one thing for another. To shop or buy regularly: trades at the local supermarket OBJECTIVES OF THE STUDY The objective of the study include the study of the below mentioned aspects. To understand online stock exchange process.
Page No. 38

 To understand the role of INDIA INFOLINE INVESTMENT SOLUTIONS LTD. In online trading. To know the on-line screen based trading system adopted by INDIA INFOLINE INVESTMENT SOLUTION LTD. To study about the back up measures with respect to primary market & secondary market Knowing about the latest & future(call options and put options) development in the stock exchange trading system. To evaluate the service of INDIA INFOLINE INVESTMENT SOLUTIONS LTD. Clearly defining each & every term of the stock exchange trading procedures.

ONLINE TRADING

Page No. 39

The increasingly popular activity of buying and selling securities over the internet, or to a lesser extent, through a broker's proprietary software. Trading System A trading system is simply a group of specific rules, or parameters, that determine entry and exit points for a given equity. These points, known as signals, are often marked on a chart in real time and prompt the immediate execution of a trade. Here are some of the most common technical analysis tools used to construct the parameters of trading The SE is an organization market for purchase & sale of listed Industrial & Financial Securities. The securities traded on stock Exchanges include Share & Debentures of Public Limited companies, Government Securities etc,. According to securities contract (regulation) act 1956 "Stock Exchange is an association, organization or body of individuals, whether incorporated of act, established for the purchase of assisting, regulation & controlling business in buying, selling & dealing securities.

NEED FOR THE STUDY

Page No. 40

SEBI in September 1996 has issued guidelines to the stock exchanges to go for online trading procedure by the end of the year 1996. Following its directions INDIA INFOLINE INVESTMENT SOLUTIONS installed the on-line trading system as on 20th February 1997. The major need for this study is to know the effectiveness of the on-line system in comparison with the outcry or mock trading to study its advantages & recommend for beneficial & effective use of the system. The study also includes the emergence of the Depository system in the country to rule out the drawbacks of the system of physical transfer of the shares. SCOPE OF THE STUDY The scope of my study was 1). To know the procedure of online trading/screen based trading. 2). To know the trading procedure at "India Info line Investment solutions". 3). The study is primarily aimed at knowing the procedural formalities a company should fulfill to get itself listed in the stock exchange with reference to "Hyderabad Stock Exchange". LTD. has

Page No. 41

RESERCH METHODOLOGY DATA COLLECTION METHOD The data collection method includes both the primary & secondary collection methods. Primary collection method: This method includes the data collected from the personal discussions with the authorized dealers & members of the exchange. Secondary collection method: The secondary collection method includes the EDP, from the news papers, magazines of the NSE, INDIA INFOLINE INVESTMENT SOLUTIONS LTD & different books relating to the issues of this study. LIMITETIONS OF THE STUDY: If you do commit to trading online, you must be careful when you enter stock orders. It is easy to make mistakes, but the market and your broker may not be sympathetic. Once an order is submitted, there may be nothing you can do to take it back if you made a mistake (for example, if you ordered 10,000 shares of stock when you only wanted 1,000). The various types of orders you enter can be confusing. Finally, you may be a novice investor, which means you may make general investing mistakes. Don't doubt that you're very good at what you do for a living, but if investing in stocks is relatively new to you, you need to make sure you get a handle on the basics. About.com is a valuable resource to get you up to speed if you want more information.
Page No. 42

LOGON AND LOGOFF To Log On to the System 1. Go to applet launching site. 2. Click the Logon button located at the top of the page. 3. Type in your User ID and Password. Click Login. 4. Depending on the speed of your connection, it may take a few minutes to load the main page. To Log Out of the System 1. Click the "X" button located at the top right hand corner to close the page. The system will sign off right away.

Page No. 43

STOCK TRADES The stock order entry screen, located at the top of the platform, allows you to buy, sell, and sell short. The Save to Basket button can save any order that you may want to place later. To Place An Order
1. Click the Equities tab at the top of the page. The screen will show

"EQUITIES" at the top right-hand corner to let you know that you are in stock-trading mode. 2. Select Buy, Sell, or Short from the drop-down menu below SIDE. 3. Enter the number of shares in Qty box. 4 Enter the symbol m Symbol box.
5. For a market order, click Market. For a limit order, enter the limit price

and click the Limit button. For a Good Till Canceled order, click GTC. 6. Click Submit to send the order,
7. If it is a GTC order, select 15 Days or 30 Days for the GTC order. Click

OK to send the order. If you do not want to send the order or if you want to make changes, click Cancel.

Page No. 44

8. A window will appear (as the picture) asking you to confirm the order. If all details are correct, click OK to send the order. If you do not want to send the order, Cancel. or if you want to make changes, click

To Save an Order into the Basket You can enter an order and click the shopping cart icon to save it. Click Basket tab to see the trades you have saved. Orders saved to the Basket are not sent to the market until you decide to do so. This is not the same as placing Good Till Canceled or other open orders. To Place an Order from the Watch List You can also place an order from your Watch List

Page No. 45

OPTION QUOTES AND OPTION TRADES To Get Option Quotes

1. 2. 3. 4. 5.

Click the Option Chain tab to open the option quote screen. Enter the stock symbol in the Equity Symbol field. Select the strike price from By Strike. Select the expired month from the By Exp. Month. Select the range of option quotes you would like to view from Click Go. The screen will list all the option symbols and current

Calls, Puts, or All 6. market prices associated with your criteria.

Page No. 46

To Place an Option Trade

1. Click the Option button at the top left hand corner to open the option

order entry screen. OPTION will appear at the upper right-hand corner to let you know that you are in Option mode. 1. Follow the above steps to open the option quote screen and get the option symbol.
2. In the Option Chain quote screen, double click the symbol, which you

would like to place an order.

3. The option order entry screen at the top will show the real-time quote of the

option.
4. Select: Buy to Open, Sell to Open, Buy to Close, or Sell to Close from

the drop-down menu below SIDE.

5. Enter the number of contracts in the # of Contracts field. 6. Click Market, or enter a limit price and click Lim (Limit). For a Good

Till Canceled order, click GTC.

7. Click Submit 8.

If it is a GTC order, select 15 Days or 30 Days for the GTC order. Click

OK to send the order. If you do not want to send the order or if you want to make changes, click Cancel.

Page No. 47

9. A window will appear (as the picture) asking you to confirm your order. If the information is correct, click OK to send the order. If you click Cancel, the order will not be sent to market. LEVEL I QUOTE The Level I real-time streaming quote updates automatically every five seconds and continually throughout market hours. To Get Quotes
1. Enter a symbol in the field located on the left-hand side. You can also

click the small arrow at the right to select a symbol you previously entered in the same day. 2. Press the Enter key on your keyboard or select Get Quotes (under the Select Action drop-down menu) to display real-time streaming quote. To Add Stock to Watch List For stocks you watch frequently, select Add to Watch List (under the Select Action drop-down menu) so you can view quotes without entering the symbol again. To View Company Information for a Specific Stock
1. Enter a symbol in the field located on the left-hand side. You can also

click the small arrow at the right to choose a symbol you previously entered on the same day.
2. Select Get Content under the Select Action drop-down menu. A separate

window will appear with news and charts for the selected stock. You can

Page No. 48

also click the following links at the top of the pop-up window to see more information for the stock: a) .Detailed Quotes: Detailed quote, intra-day charts, and the latest news. b) News: Recent News. c) Charts: Six different chart types - intra-day, one month, three months, six months, one year and Interactive. d) SEC Filings: The company's reports to the SEC. e) Profile A description of the company and fundamental information about its stock. f) Historical: The open, high, low and closing prices, change and volume of any given stock in the past six years. g) Messages: Related bulletin board messages about the stock posted by the public. To View Market Information Click Market Snap. The market information will show in a different window.

Page No. 49

Streaming Quote Field Definitions Ask: Lowest price at which someone currently offers to sell the stock. Ask Size: Number of shares, in hundreds, for sale at the current ask price. Bid: Highest price at which someone currently offers to buy the stock. Bid Size: Number of shares, in hundreds, of the offer at the current Bid. Change: The difference between the price of the Last trade and the stock's previous Close price. % Change: The percent difference between the price of the Last trade and the stock's previous Close price. Close: The last trade price on the previous trading day. High: Highest trade price of the stock during the current trade date. Last: Most recent trade price of the stock during the current trade day. Low: Lowest trade price of the stock during the current trade day. Open: The opening price for the stock on the current trade date.

Page No. 50

Tick: Located to the right of the symbol. Indicates whether the current Bid is higher or lower than the previous Bid. Current Bid is higher: Tick will show an arrow pointing up. Current Bid is lower: Tick will show an arrow pointing down. Current Bid is same: Tick will show "UC" (unchanged). Volume: Total number of shares of the stock traded during the current trade date

Page No. 51

ACCOUNT SCREEN To View Account Information 1. Click the Accounts tab to see your account information. To Switch to Another Account
1. 2.

Click the Accounts tab to open the Account screen. Click Change Account button.

3. Select the new account number.

Page No. 52

FIELD DEFINITIONS
UOI

Order sequence number.

If the UOI field display number with **, that means the order is a GTC order
Sym Side Qty Type Cqty Avg Price

: : : : : : : :

Stock symbol Order side: buy, sell or short sale. Number of shares in this order. Limit order or market order Number of shares that have been filled Average execution price entire order Current order status: filled, pending or cancelled The number of execution that the system filled the order

Status #X

L.qty

Number of shares still unfilled

Page No. 53

BASKET TRADING You can fill your basket with orders in advance, and place them later with just one click. Web Trader provides you multiple baskets. Once you add/remove orders in the Basket, the system saves the modification automatically. To Set Up Your Basket
1. Click the Basket tab to open the Basket window.

2. Select a basket from the drop-down menu at left.

3. To re-name the basket, click Rename Cart, type a new name into the

pop- up window, and click OK.

To Enter Orders Directly into the Basket

1. Click the Basket tab to open the Basket window.

2. Select a basket from the drop-down menu at left.

Page No. 54

3. Click New Row at left to add stocks to the basket. OK. 4. Double click the empty field under Action and select your action:

Buy, Sell or Short

5. Double click on the empty field below Qty until it changes to written

mode. Enter the number of shares you would like to trade.

6. Double click on the empty field under Symbol until it changes to written

mode . Enter the stock symbol.

7. Double click on the empty field under Price. Enter a price for a limit

order, or select Mkt for a market order.

8. Double click on the empty fiejd under Account. Choose the account

number from the drop-down menu. To Save an Order to a Basket from the Order Entry Screen You can save an order to a basket from the order entry screen and send the order to market later. 1. In the Order screen, enter all the required information about the order. 2. Click the shopping cart icon.
3. From the drop-down menu, select the basket in which you want to save

the order. Click OK to save, or Cancel to not save the order into the basket.

Page No. 55

Remove an Order from the Basket

1. Click the Basket tab to see the Basket screen, and select one of

the baskets from the drop-down menu. 2.Select the order you want to remove.
3. Click Remove at right.

To Get Quotes for Stocks in the Basket 1.Click the Basket tab to see the Basket screen, and select one of the baskets from the drop-down menu. 2.Select the order for which you would like to see a quote.
3. Click Quotes at the right of the Basket screen.

To Execute an Order in the Basket

1. Click the Basket tab to see the Basket screen, and select one of

the baskets from the drop-down menu.

2. To execute all orders listed in the basket, click Execute AH.

Page No. 56

3.

To execute only one order, select the order and then click Execute.

When you Execute trade(s) in the Basket, the Basket Order(s) will still display in the basket until you remove the order(s). You can modify the saved Basket Order(s) at any time, and the system will automatically save any changes you made.

Page No. 57

WATCH LIST

Setting up a Watch List saves your time when retrieving quote data for stocks you watch frequently. Once you add/remove symbols in the Watch List, the system saves the modification automatically. Watch list automatically update the quote every 10 seconds. You can also click the Refresh button at any time to update the quote.

Page No. 58

To Add a Stock to the Watch List

1. Click the Watch List tab to open the Watch List screen. 2. Enter a symbol in the box to the left of the Add Symbol button at

the bottom of the screen. 3 Click Add Symbol To Add a Stock to the Watch List from Quote Screen 1. Type a symbol into the field on the left-hand side of Quote screen. You can also click the small arrow located at the right to choose a symbol you entered earlier on the same day. 2 Click Add to Watch List To Remove a Stock from the Watch List 1. Click the Watch List tab to open the Watch List screen. 2. Highlight the symbol you want to remove and click Remove.

Page No. 59

To Place an Order from the Watch List 1. Double click the symbol you would like to trade in the Watch List. 2. The Equity order entry screen at the top will display the realtime quote of the stock. And the symbol will also be displayed in the SYMBOL field at the order entry section automatically.
3. Select Action: Buy, Sell or Short. 4. Enter the number of shares in the QTY field 5. Click Market, or enter a limit price and click Lim (Limit).

For a Good Till Canceled order, click GTC.

6. Click SUBMIT. 7. If it is a GTC order, select 15 Days or 30 Days for the GTC

order. Click OK to send the order. If you do not want to send the order or if you want to make changes, click Cancel.

Page No. 60

8. A window will appear (as the picture) asking you to confirm the order. If all details are correct, click OK to send the order. If you do not want to send the order, or if you want to make changes, click Cancel.

Page No. 61

KEYS USED FOR TRADING

Fl F2 F3 F6 F7 F8

- BUY - SELL - PENDING ORDERS (BUYING & SELLING) - MARKET DEBTS (COMPANY ENQUIRY) - ARBITRAGE ORDERS - HOW MANY TRADING HAS BEEN DONE

SHIFT+F8 - NET POSITION OF THE COMPANY'S SHARES CTRL+F8 - SETTLEMENT OF NET POSITION FOR EXPOSURE PURPOSE SHIFT+F9 - NEWS
Fll F12

- ADDING A NEW COMPANY IN TO THE N/W - TEMPORARY LOCKING OF WINDOWS

Page No. 62

EQUITY TRADING BSEA GROUP / NSE FOR THE MONTH OF APRIL 2012 Equity Trading of company TATA STEEL DATE 2,Apr,2012 3,Apr,2012 4,Apr,2012 9,Apr,2012 OPEN 470.85 475.55 474.40 472.40 HIGH 477.30 482.25 479.40 472.40 459.45 454.80 LOW 467.10 474.15 471.25 455.75 449.40 443.60 CLOSE 470.90 477.70 476.40 456.80 453.05 446.85 VOLUME 3,277,900 4,199,200 3,122,700 2,679,400 4,369,000 4,201,700

10,Apr,2012 459.45 11,Apr,2012 448.30

Page No. 63

Opening share value of TATA STEEL for the month of April

480 475 470 465 460 455 450 445 440 435 430
Ap r,1 2 Ap r,1 2 Ap r,1 2 9A pr ,1 2 10 ,A pr ,1 2 11 ,A pr ,1 2
Page No. 64

2,

3,

Trading days for the month of April INFERENCE: The Open share value of TATA STEEL was 470.85 on 02,Apr,12 it increased to 475.55 on 3,Apr,12. The share value was decreased to 474.40 on 4,Apr,12 and also value continue sly decreased day by day and final Open share value is Rs.448.30 on 11,Apr,12.

4,

High share value of TATA STEEL for the month of April

485 480 475 470 465 460 455 450 445 440
pr ,1 2 pr ,1 2 pr ,1 2 pr ,1 2 pr ,1 2 11 ,A
Page No. 65

Trading days for the month of April INFERENCE: The TATA STEEL share values High range on 02,Apr,12 Rs.477.30 then next day Increase Rs.4.95 on 03,Apr,12 after that decrease Rs. 3.05 on 04,Apr,12 and also High range share value continue sly decreased day by day Trading and it close high range share value

10 ,A

2, A

3, A

4, A

9, A

pr ,1 2

Rs.454.80 on 11,Apr,12. compare to the starting high range share value the closing high range share value on 11,Apr,12 decreased Rs.22.5. (477.30-454.80).

Low share value of TATA STEEL for the month of April

480 475 470 465 460 455 450 445 440 435 430 425
pr ,1 2 3, A pr ,1 2 4, A pr ,1 2 9, A pr 10 ,12 ,A pr 11 ,12 ,A pr ,1 2

LOW

2, A

Trading days for the month of April INFERENCE:

Page No. 66

TATA STEEL share values low range on Rs. 467.10 on 02,Apr,12 then Increase to Rs.474.15 on 03,Apr,12 after that decrease Rs.2.9 on 04,Apr,12 and also the share value low range continue sly decrease day by day and it close on Rs.443.60 on 11,Apr,12.

Closing share value of TATA STEEL for the month of April

485 480 475 470 465 460 455 450 445 440 435 430
2, Ap r, 1 2 3, A pr ,1 2 4, Ap r, 1 2 9, Ap r, 1 2 10 ,A pr ,1 2 11 ,A pr ,1 2

CLOSE

Trading days for the month of April

Page No. 67

INFERENCE: The share value of TATA STEEL close value on 02,Apr,12 Rs.470.90 then 03,Apr,12 increase on Rs.6.8 after that on 04,Apr,12 it decease Rs.1.3 and also it continue sly decreased day by day and it close on Rs.446.85 on 11,Apr,12.

EQUITY TRADING BSEA GROUP / NSE FOR THE MONTH OF APRIL 2012 EQUITY TRADING OF AXIS BANK DATE 02,Apr,12 03,Apr,12 04,Apr,12 09,Apr,12 10,Apr,12 11,Apr,12 OPEN 1,126.00 1,161.00 1,161.00 1,157.55 1,154.50 1,138.00 HIGH 1,161.50 1,185.00 1,173.80 1,158.00 1,159.50 1,169.60 LOW 1,156.10 1,163.40 1,134.05 1,139.80 1,141.20 1,155.35 CLOSE 1,159.30 1,193.95 1,164.00 1,153.60 1,146.50 1,168.00 VOLUME 2,283,700 1,929,900 1,714,700 1,128,100 1,023,300 1,496,000

Page No. 68

Opening share value of AXIS BANK for the month of April

Page No. 69

1,170.00 1,160.00 1,150.00 1,140.00 1,130.00 1,120.00 1,110.00 1,100.00

pr 03 ,12 ,A pr 04 ,12 ,A pr 09 ,12 ,A pr 10 ,12 ,A pr 11 ,12 ,A pr ,1 2

OPEN

02 ,A

Trading days for the month of April INFERENCE; The AXIS BANK share value Rs.1,126 on 02,Apr,12 then increase Rs.35 on 9,Apr,12 the Open Share value decrease Rs.3.45 also the share value decrease Rs.3.05 on 10,Apr,12 and the end of the Open share value range is Rs.1,138.00 on 11,Apr,12.compare to starting Open share value the end Open value increase Rs.12.(1126-1138)

Page No. 70

High share value of AXIS BANK for the month of April

1,190.00 1,180.00 1,170.00 1,160.00 1,150.00 1,140.00 1,130.00 1,120.00 1,110.00

02 ,A pr 03 ,12 ,A pr 04 ,12 ,A pr 09 ,12 ,A pr 10 ,12 ,A pr 11 ,12 ,A pr ,1 2

High

Trading days for the month of April

INFERENCE: The AXIS BANK share value high range starts on 02,Apr,12 Rs.1,161.50 then Increase Rs.23.5 after that on 03,Apr,12 high value decrease Rs.11.2 and again decrease share value is Rs.15.8 on 04,Apr,12 on 9,Apr,12 high value Increase Rs.1.5 and also it increase Rs.10.10 on 11,Apr,12 and end of the High range share value 1,169.60.compare to the starting high range share value the end of high range share value is Increase Rs.8.1.(1161.50-1169.60).

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Low share value of AXIS BANK for the month of April

1,200.00 1,190.00 1,180.00 1,170.00 1,160.00 1,150.00 1,140.00 1,130.00 1,120.00
,A 02 2 r,1 p ,A 2 r,1 p ,A 04 2 r,1 p ,A 2 r,1 p ,A 10 2 r,1 p ,A 2 r,1 p

Low

03

09

11

Trading days for the month of April INFERENCE: The AXIS BANK share value low range starts on Rs.1,156.10 on 02,Apr,12 the next day increase Rs.13.3 on 03,Apr,12 and on 04,Apr,12 share value decrease Rs.29.35 on 9,Apr,12 share value increase Rs.5.75 and also it increase Rs.1.4 on 10,Apr,12 and on 11,Apr,12

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AXIS BANK share value increase on Rs.14.15 the end of share value low range Rs.1,155.35.

Closing share value of AXIS BANK for the month of April

1,200.00 1,190.00 1,180.00 1,170.00 1,160.00 1,150.00 1,140.00 1,130.00 1,120.00

03 ,A p 04 r,12 ,A pr 09 ,12 ,A pr 10 ,12 ,A p 11 r,12 ,A pr ,1 2 pr ,1 2

Close

02 ,A
INFERENCE:

Trading days for the month of April The closing share value of AXIS BANK Rs.1,159.30 on 02,Apr,12 then 03,Apr,12 Increase Rs.34.65 . Then 04,Apr,12 closing share value decrease Rs.29.95 and also it decrease Rs.10.4 on 9,APR,12 on

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10,April,12 also closing value 7.1 and finally on 11,Apr,12 closing value Increase Rs.21.5 then closing range of share value is Rs.1168.00.

EQUITY TRADING BSEA GROUP / NSE FOR THE MONTH OF APRIL 2012 Equity Trading of company AMARAJA BATARIES LTD. DATE 02,Apr,12 03,Apr,12 04,Apr,12 09,Apr,12 10,Apr,12 11,Apr,12 OPEN 293.25 299.85 303.00 303.00 303.65 296.00 HIGH 301.00 309.50 310.00 305.90 308.25 304.95 LOW 293.25 299.85 299.20 294.00 298.45 296.00 CLOSE 298.00 304.90 309.00 301.00 301.00 301.00 VOLUME 13,200 51,200 25,500 37,500 74,600 29,000

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Opening share value of AMARAJA BATARIES for the month of April

306 304 302 300 298 296 294 292 290 288
02 ,A pr ,1 2 03 ,A pr ,1 2 04 ,A pr ,1 2 09 ,A pr ,1 2 10 ,A pr ,1 2 11 ,A pr ,1 2

Open

Trading days for the month of April

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INFERENCE: The share values of AMARAJA BATARIES open range Rs.293.25 on 02,Apr,12 then increase upto 299.85 on 03,Apr,12. on 04and 09,Apr,12 the open range share value is Rs.303.00 and it is little bit increase Rs0.65 on 10,Apr,12 and finally the open range share value decrease Rs.7.65 and close open range share value is Rs.296.00 on 11,Apr,12.

High share value of AMARAJA BATARIES for the month of April

Page No. 76

312 310 308 306 304 302 300 298 296

pr ,1 2 pr ,1 2 pr ,1 2 pr ,1 2 pr ,1 2 pr ,1 2

HIGH

02 ,A

03 ,A

04 ,A

09 ,A

10 ,A

Trading days or the month of April INFERENCE: The AMARAJA BATARIES share values of high range on 02,Apr,12 Rs.301.00 then increase Rs.9.5 on 03,Apr,12 and also on 04,Apr,12 also it increase Rs.0.50 after that it decrease Rs.4.10 on 09,Apr,12 and again it Increase Rs.2.35 0n 10,Apr,12 and finally it on more time it decrease Rs.3.30 and close high range share value is Rs.304.95 on 11,Apr,12.

11 ,A

Page No. 77

Low share value of AMARAJA BATARIES for the month of April

302 300 298 296 294 292 290 288
pr ,1 2 03 ,A pr ,1 2 04 ,A pr ,1 2 09 ,A pr ,1 2 10 ,A pr ,1 2 11 ,A pr ,1 2

Low

02 ,A

Trading days for the month of April INFERENCE: The AMARAJA BATARIES share values low range of 02,Apr,12 starts on Rs.293.25 then increase Rs.6.60 on 03,Apr,12 and on 04,Apr,12 low range share value decrease Rs.0.65 and also it decrease Rs.5.20 on 09,Apr,12 on 10,Apr,12 low range share value increase Rs.4.45 and again the value decrease Rs.2.45 and close low range share value on Rs.296.00 on 11,Apr,12.

Page No. 78

Closing share value of AMARAJA BATARIES for the month of April

310 308 306 304 302 300 298 296 294 292
pr ,1 2 pr ,1 2 pr ,1 2 pr ,1 2 pr ,1 2 pr ,1 2

Close

02 ,A

03 ,A

,A

09 ,A

10 ,A

Trading days for the month of April INFERENCE: The AMARAJA BATARIES share values of closing range Rs.298.00 on 02,Apr,12 increase Rs.6.90 on 03,Apr,12 then also increase Rs.4.10 on 04,Apr,12 after that decrease on Rs.8.00 on 09,Apr,12 after that on 09,10 and 11,Apr,12 the closing range share value is Rs,301.00 and also the end of closing range share value is Rs.301.00.

11 ,A

04

Page No. 79

FINDINGS FINDINGS:
The people who are working in the stock exchange are not

having good knowledge on the share market.

The investors are also lacking knowledge in the shares Lack of

awareness on online trading

The investors are not allowed to trade the quotations directly to buy

or sell their securities

SEBI is not conducting seminars to get awareness on the share

market to the investors The functions of stock exchange is not up to the mark

Page No. 80

SUGGESTIONS
The SEBI has to conduct the regular seminar to create awareness

on the share market

The stock exchange has to permit the investors to trade their

quotations directly They have to improve the online trading perfectly

The online system has to advice the investor, at the time of trading

which price can get him profit for a security In INDIA INFOLINE INVESTMENT SOLUTIONS LTD. settlement of the accounts will be improved.

Page No. 81

CONCLUSION In this present competitive world economy plays a vital role in development of the country, if a person is able to have the better life by having sufficient wealth with him. It can be made happen only by means of earnings, any person cannot earn more by staying stagnated at one place there are many ways of earning one among them is by way of investing in the stock exchanges. No person can directly enter into the markets; the only source is through the middle man that is any company that is member in the stock exchange.

These member companies are providing many services to the investors or their clients like portfolio investments, derivatives and mutual funds etc., so any company has to provide better services to the costumer in such a way that they can trust the company in investing their wealth through the company. It can be done only by fallowing the certain guidelines and rule & regulations framed by SEBI.

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