Post on 16-Oct-2014
An instrument that signifies an ownership position (called equity) in a corporation, and
represents a claim on its proportional share in the corporation's assets and profits. Ownership in
the company is determined by the number of shares a person owns divided by the total number
of shares outstanding. For example, if a company has 1000 shares of stock outstanding and a
person owns 50 of them, then he/she owns 5% of the company. Most stock also provides voting
rights, which give shareholders a proportional vote in certain corporate decisions. Only a certain
type of company called a corporation has stock; other types of companies such as sole
proprietorships and limited partnerships do not issue stock. Also called equity or equity securities
or corporate stock.
A stock market is a public market for the trading of company stock and derivatives at an agreed
price; these are securities listed on a stock exchange as well as those only traded privately.
The size of the world stock market was estimated at about $36.6 trillion US at the beginning of
October 2008.
The total world derivatives market has been estimated at about $791 trillion face or nominal
value, 11 times the size of the entire world economy. The value of the derivatives market,
because it is stated in terms of notional values, cannot be directly compared to a stock or a fixed
income security, which traditionally refers to an actual value. Moreover, the vast majority of
derivatives 'cancel' each other out (i.e., a derivative 'bet' on an event occurring is offset by a
comparable derivative 'bet' on the event not occurring.).
Many such relatively illiquid securities are valued as marked to model, rather than an actual
market price.) The stocks are listed and traded on stock exchanges which are entities a
corporation or mutual organization specialized in the business of bringing buyers and sellers of
the organizations to a listing of stocks and securities. 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, e.g. OTCBB and Pink Sheets. European examples of stock
exchanges include the London Stock Exchange, the Deutsche Borse and the Paris Bourse, now
part of Euronean countries.
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Function and purpose
The stock market is one of the most important sources for companies to raise money. This allows
businesses to be publicly traded, or raise additional capital for expansion by selling shares of
ownership of the company in a public market. The liquidity that an exchange provides affords
investors the ability to quickly and easily sell securities. This is an attractive feature of investing
in stocks, compared to other less liquid investments such as real estate.
History has shown that the price of shares and other assets is an important part of the dynamics
of economic activity, and can influence or be an indicator of social mood. An economy where
the stock market is on the rise is considered to be an up and coming economy. In fact, the stock
market is often considered the primary indicator of a country's economic strength and
development. 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 eye on the control and behavior of the
stock market and, in general, on the smooth operation of financial system functions. Financial
stability is the raison d'etre of central banks.
Exchanges also act as the clearinghouse for each transaction, meaning that they collect and
deliver the shares, and guarantee payment to the seller of a security. This eliminates the risk to an
individual buyer or seller that the counterparty could default on the transaction.
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.
Relation of the stock market to the modern financial system
The financial system in most western countries has undergone a remarkable transformation. One
feature of this development is disintermediation. A portion of the funds involved in saving and
financing flows directly to the financial markets instead of being routed via the traditional bank
lending and deposit operations. The general public's heightened interest in investing in the stock
market, either directly or through mutual funds, has been an important component of the process.
Statistics show that in recent decades shares have made up an increasingly large proportion of
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households' financial assets in many countries. In the 1970s, in Sweden, deposit accounts and
other very liquid assets with little risk made up almost 60 percent of households financial wealth,
compared to less than 20 percent in the 2000s. The major part of this adjustment in financial
portfolios has gone directly to shares but a good deal now takes the form of various kinds of
institutional investment for groups of individuals, e.g., pension funds, mutual funds, hedge funds,
insurance investment of premiums, etc. The trend towards forms of saving with a higher risk has
been accentuated by new rules for most funds and insurance, permitting a higher proportion of
shares to bonds. Similar tendencies are to be found in other industrialized countries. In all
developed economic systems, such as the European Union, the United States Japan and other
developed nations, the trend has been the same: saving has moved away from traditional
(government insured) bank deposits to more risky securities of one sort or another.
The stock market, individual investors, and financial risk
Riskier long-term saving requires that an individual possess the ability to manage the associated
increased risks. Stock prices fluctuate widely, in marked contrast to the stability of (government
insured) bank deposits or bonds. This is something that could affect not only the individual
investor or household, but also the economy on a large scale. The following deals with some of
the risks of the financial sector in general and the stock market in particular. This is certainly
more important now that so many newcomers have entered the stock market, or have acquired
other 'risky' investments (such as 'investment' property, i.e., real estate and collectables).With
each passing year, the noise level in the stock market rises. Television commentators, financial
writers, analysts, and market strategists are all overtaking each other to get investors' attention.
At the same time,individual investors, immersed in chat rooms and message boards, are
exchanging questionable and often misleading tips. Yet, despite all this available information,
investors find it increasingly difficult to profit. Stock prices skyrocket with little reason, then
plummet just as quickly, and people who have turned to investing for their children's education
and their own retirement become frightened. Sometimes there appears to be no rhyme or reason
to the market, only folly.
This is a quote from the preface to a published biography about the long-term value-oriented
stock investor Warren Buffett. Buffett began his career with $100, and $105,000 from seven
limited partners consisting of Buffett's family and friends. Over the years he has built himself a
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multi-billion-dollar fortune. The quote illustrates some of what has been happening in the stock
market during the end of the 20th century and the beginning of the 21st centuary.
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name of the organization
Edelweiss Broking Limited
Contact details:
10185 - A, 3rd Floor,
ARYA Samaj Road,
Karol Bagh, New Delhi – 100005
Headquarter Address
Mumbai
Edelweiss House,
off C.S.T. Road, Kalina,
Mumbai – 400098
Lines of Business
Investment Banking
4th Floor, Edelweiss House,
off C.S.T. Road, Kalina,
Mumbai - 400098
Tel: +91 22 4086 3535
Institutional Equities
12th Floor, Edelweiss House,
off C.S.T. Road, Kalina,
Mumbai - 400098
Tel: +91 22 4009 4600
Wealth Advisory &
Investment Services (WAIS)
6th Floor, Edelweiss House,
Wholesale Financing
5th floor, One India bulls Centre,
Tower 1, 841
5
off C.S.T. Road, Kalina,
Mumbai - 400098
Tel: +91 22 4009 4600
Senapati Bapat Marg, Elphinstone Road,
Mumbai - 400013.
Tel: +91 22 4342 8000
Insurance Brokers
1st Floor, Mittal Chamber,
Nariman Point,
Mumbai - 400021
Tel: 022 66242600
Fax: 022 66242634
Asset Management
6th Floor, Edelweiss House,
off C.S.T. Road, Kalina,
Mumbai - 400098
Tel: +91 22 4009 4600
Client Advisory Services (CAS)
5th floor, One India bulls Centre,
Tower 1, 841,
Senapati Bapat Marg, Elphinstone Road,
Mumbai - 400013.
Tel: +91 22 4088 6100
Fax: 022 6624263
Edelweiss Offices
Ahmedabad
Bhopal
Bangalore
Chennai
Gujarat
Hubli
Hyderabad
Indore
Ludhiana
Mumbai
Nashik
Pune
6
Cochin
Delhi
Gurgaon
Jaipur
Jodhpur
Kolkata
Surat
Udaipur
Ahmedabad
“CJD Wing” Ground Floor,
Madhusudan House,
Opp. Navrangpura Tel.
Exchange,
Ellisbridge, Ahmedabad - 380 006.
Ahmedabad-(Bodakdev branch)
905,Akik Tower,
Nr. Parshwa Tower,
Sarkhej Gandhi Nagar Highway,
Bodakdev,
Ahmedabad - 380 054.
Ahmedabad-panchwati
402, 4th Floor,
3rd Eye One,
Panchwati,
CG Road,
opp. Havmore restaurant
Ahmedabad
Bhopal
FF-18 Alaknanda Complex,
Zone-I, M.P. Nagar,
Bhopal
Bangalore
1st floor, Plot # 4009,
100 feet Road,
HAL II Stage,
Chennai
3/2 College Lane,
(Near SBI Circle Office)
Nungambakkam
7
Bangalore - 560008. Chennai – 600 006.
Cochin
NO- 509, 5th Floor,
Govardhan business center,
Govardhan buildings,
Chittoor roadm,
Ernakulum,
Cochin- 682035
Cochin
Shop No.4, Corporation
Door No 39-3993 B3
Vantage Point, VRM Road,
Ravipuram, Cochin,
Kerala – 682016.
Delhi
603, Merchantile House,
15, K. G. Marg, CP,
New Delhi - 110001
Tel. No.: 011 - 43571111
Gurgaon
No.302 & 303,
3rd Floor,
JMD Regent Plaza Mehrauli
Gurgaon Road,
Gurgaon
(Haryana) - 122002.
8
Gujarat
Himatnagar
Near Ahmed Chamber,
Juna Bazar,
Himatnagar - 383001.
Hyderabad
2nd Floor
MB Towers,
Road No. 2
Banjara Hills
Hyderabad - 500034
Hubli
35/36, 3rd Floor,
Eureka Junction,
Travelers Bungalow Road,
Hubli – 29
Indore
312-313, Dm Tower,
21/1, Race Course Road,
Indore.
Jaipur
601 & 602,
6th Floor Green House,
Ashok Marg,
Jaipur – 320 001.
.
Jodhpur
315, 3rd Floor,
Mody Arcade,
Near Bombay Motor Circle,
Chopasni Road,
Jodhpur – 342001
Jodhpur
2nd Floor,
E – 131 Kalpatru Shopping Center,
Kolkata
“MANGALAM” block- A,
Premises No. 24,
Hemant Basu Sarani,
9
Kumar Mandeep Tower,
Jodhpur- 342001.
Kolkata-700 001
Kolkata-Savitri Towers
2nd Floor
Savitri Towers,
3A Upper Wood Street,
Kolkata 700017
Ludhiana
Shop No. 605,
6th Floor, SCO-18,
Feroze Gandhi Market,
Opp. Ludhiana Stock Exchange,
Ludhiana, Punjab
Mumbai – Sion
11th Floor, 1101A/1101B,
Godrej Coliseum,
Off Eastern Express Highway,
Mumbai- 400 022.
Mumbai-Malad
Ground Floor,
Gemstar Commercial Complex,
Ram Chandra Extension Lane,
Malad (W)
Mumbai-400064
Mumbai - Andheri Lokhandwala
Gr.Floor,
Norwood Building,
Shop No.4,
Swami Samarth Road,
Lokhandwala Complex,
Andheri, Mumbai - 400053.
Mumbai - Goregaon-Cornershop
Shop No 8,
Tulsi Deep C.H.S. Ltd.,
Kumud Nagar,
S.V. Road,
Gurgaon(W),
Mumbai - 400 062.
10
Mumbai - Vashi-Cornershop
Shop No.50,
Welfare Chamber CHS Ltd.,
plot No 73,
E wing sec 17,
Vashi,
Mumbai - 400705.
Mumbai - Thane-Corner shop
Shop No 7 & 8,
Block no 1,
Emerald Plaza,
Hiranandani Meadows,
off pokharan Road No 2,
Thane
Mumbai - 400 610.
Mumbai - Dadar
1st Floor,
Framroze Court,
Dadasaheb Phadkke marg,
Dadar(E),
Mumbai - 400014.
Mumbai - Sakinaka
Unit No. 305, 306, 307,
Sagar Tech Plaza B,
Andheri-Kurla Road,
Andheri(E),
Mumbai - 400 073.
Mumbai - Chandermukhi-Nariman
Point
8th floor,
Chandermukhi,
Nariman Point,
Mumbai - 400021.
Mumbai - Borivali-Retail
Syndication
Shop No. 10,
Ground Floor,
Sucheta Enclave,
Chandrawarkar lane,
Maharashtra Nagar,Borivali(W)
11
Mumbai - Andheri
B-205, 2nd Floor,
Kotia Nirman Society
Opp. Laxmi Industrial Estate,
Link Road, Andheri (W),
Mumbai - 400058.
Mumbai - Opera House
Mani Mahal,
101-A, First Floor
Matthew Road
Opera House,
Mumbai - 400 004.
Mumbai - Fort
104, PJ Towers,
Stock Exchange Building,
Fort,
Mumbai – 400 001
Mumbai - Gurgaon
"F-13, 1st Floor
Washington Plaza
Dispensary Road
Off. S. V. Road
Goregoan (West)
Mumbai 400062
12
Mumbai - Borivali
Unit no 104-105,1st Floor,
Dattani Trade Center Co-op
Premises Ltd.Chandaverkar Road,
Borivali (w),
Mumbai – 400 092.
Mumbai – Ghatkopar
Atlantic Commercial Complex
221,
2nd Floor,
Javajar Road,
Near Patel Chowk.
Ghatkopar East
Mumbai- 400 077.
Mumbai –Forjett Street
Ground Floor,
My Home Apartments,
Forjett Street Cross Lane,
Mumbai - 400036.
Mumbai - Santa Cruz
Bindu Shopping Centre,
Ground Floor,
Besant Street, Tilak Road,
Nr. Station,
Santa Cruz West,
Mumbai - 400 054
Mumbai – Vile Parle
No. 701/702, 7th Floor,
Kapadia Apartments,
S.V. Road, Vile Parle (W),
Mumbai – 400 056.
Mumbai – Masjid Bunder
32 Mehta Chambers ,
4th Floor, Kalyan Street ,
Masjid (E),
Mumbai - 400009
Tel: 022 32423554 / 022 23732258
13
/ 59
Nashik
Plot No. 56, 1st Floor,
Thate Wadi
College Road,
Nashik
Pune
Cabin No 46,
Shocd, Karnala Arcade,
4th Floor,
Above Pizzahut,
J M Road,
Pune - 411004
Pune
Premium Point, Office No 105,
1st Floor, J.M.Road,
Above Colour plus Showroom,
Shivaji Nagar,
Pune - 411 005.
Surat
Office No.6,
3rd Floor,
Urmi Apartment,
Opp.Sbi Athugar Street,
Nanpura
Surat – 395001
Official Website:
www.edelweiss.in
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About Edelweiss
Edelweiss, a rare flower found in Switzerland.
You will discover in our identity: A graphic flower that represents ideas. Around it, the
protective arms of the letter ‘e’: We believe ideas create wealth, but values protect it.
It is the practice of this core thought that has led to Edelweiss becoming one of the leading
financial services company in India. Its current businesses include investment banking, securities
broking, and investment management. We provide a wide range of services to corporations,
institutional investors and high net-worth individuals.
The core inspiring thought of ‘ideas creating wealth and values protect it’ is translated into an
approach that is led by entrepreneurship and creativity and protected by intellectual rigor,
research and analysis.
Approach
Client Focus
Edelweiss is driven by the emphasis we place on building long-term relationships with our
clients. We work closely with our clients to equip them with the ability to address large, fast-
growing market opportunities. Our emphasis on long-term relationships also means that we have
a significant ongoing involvement with almost all of the clients that we work with.
Execution Orientation
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We focus obsessively on delivering high quality execution through our experienced team of
professionals. Each team is led by senior personnel and is highly research and ideas driven. We
place strong emphasis on confidentiality and integrity in a sensitive business environment.
Culture
Edelweiss fosters a culture that is entrepreneurial and results-driven and that emphasizes
teamwork and intellectual rigor. Our team is encouraged to display higher levels of initiative,
drive, and hunger for learning and taking on additional responsibility.
Professional Integrity
We place a strong emphasis on confidentiality, honesty and integrity in our business dealings.
We expect our people to maintain high ethical standards, both in their professional and personal
lives. We strive to be fair in all our dealings. We respect our competitors.
Research Driven
All our businesses are built on a research and analytics foundation. Our understanding of
underlying market trends and strong analytical expertise has resulted in a demonstrated ability to
identify emerging trends and themes early. We seek to provide the highest quality research and
investment opinions to our clients.
Business Principles
The Core belief of Edelweiss is ‘Ideas create, values protect’. The Company runs its business
along the following guiding principles:
We will be a Thinking Organization. We will constantly bring ‘thought’ to everything we
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do. Our clients’ and our own success depends on our ability to use greater ideation and
more imagination in our approach.
We will be fair to our clients, our employees and all stake holders. We want our clients
and our employees to be ‘richer’ for their relationship with us.
We will take care of our People seriously. Our policies – in spirit and in letter – will
ensure transparency and equal opportunity for all. We will go beyond the normal goals of
attracting, recruiting, retaining and rewarding fine talent: We will ensure that every
individual in Edelweiss has an opportunity to achieve their fullest potential.
We will operate as a Partnership, internally and externally. Though individuals are very
often brilliant, we believe teamwork and collaboration will always ensure a better and
more balanced organization. We will also treat our clients as partners and show them the
same respect and consideration that we would toward our internal team members.
We will focus on the Long Term. Though the world will change a lot in the coming years
and our assumptions for the future may not hold up, we will reflect on the long-term
implications of our actions. Even when making short-term decisions we will be aware of
the long-term implications.
We will focus on Growth for our clients, employees and shareholders.
Our Reputation and image is more important than any financial reward. Reputation is
hard to build and even harder to rebuild. Reputation will be impacted by our ability to
think for our clients, maintain confidentiality and by our adherence to our value system.
We will Obey and Comply with the rules of the land. We will maintain the highest
standard of integrity and honesty. When we are unclear we will seek clarifications.
We will respect Risk. Our business is going to be a constant challenge of balancing risk
and reward. Our ability to constantly keep one eye on risk will guide us through this fine
balance.
Our Financial Capital is a critical resource for growth. We will endeavor to grow, protect,
and use our financial capital wisely.
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Type of Business:
Investment Banking
Institutional Equities
Asset Management
Mutual Funds
Wealth Management
Private Client Brokerage
Financing
Client Advisory Services
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Organization Structure
19
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Board of Directors
Mr. Rashesh Shah
Rashesh Shah, Chairman of the Edelweiss Group has over 20 years of experience in public and
private markets in India. Mr. Shah’s focus on innovation and his passion for growth through
expansion into related/adjacent markets has been a key differentiator for Edelweiss. Mr. Shah’s
relentless focus is on organization building and human capital development. Under his
stewardship over a period of 15 years, Edelweiss has seamlessly grown into a fully diversified
financial services company. Mr. Shah serves on the Boards of various companies as well as on
the Executive Committee of the National Stock Exchange and is serving the third term as the
Chairman of the Capital Markets Committee of FICCI. He has recently been appointed as
Chairperson, ASSOCHAM National Council on Capital Markets. His academic qualifications
include an MBA from Indian Institute of Management, Ahmedabad, a Diploma in International
Trade from the Indian Institute of Foreign Trade, New Delhi and a Bachelor’s degree in Science
from the University of Mumbai.
Mr. Venkat Ramaswamy
Executive Director and Head of Investment Banking and Co-Founder of Edelweiss. Mr. Venkat
Ramaswamy has previously worked with the Spartek Emerging Opportunities Fund and ICICI,
where he worked on project-based lending to large corporates, analyzing and evaluating
investment decisions. He subsequently managed the Spartek Fund that focused on making equity
investments in small and emerging companies. He brings significant experience and expertise on
client relationships to Edelweiss. Mr. Ramaswamy holds an MBA from the University of
Pittsburgh and is an Electronics Engineer.
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Mr. Narendra Jhaveri
Mr. Jhaveri, on his return from U.K., after a brief stint with NCAER as Senior Economist, joined
the Economics Dept. of the Reserve Bank of India in 1965. He shifted to ICICI in 1974 as Chief
Economist and then moved to project finance. Mr. Jhaveri has served as an Independent Director
on the Boards of several leading Indian companies besides acting as an advisor to several of
them on diverse matters related to business. He also serves as the Chairman of the IMC
Economic Research and Training Foundation. Over a span of his long professional career Mr.
Jhaveri, apart from giving frequent lectures on subjects related to Indian Financial System,
Capital Market, Economic Development and Corporate Governance, has contributed a large
number of articles in Indian Economic dailies and specialized journals. He holds a Master’s
Degree in Economics from Gujarat University. He has also obtained M.Sc. in Economics from
the London School of Economics, specializing in public finance and with 40 years of experience.
Mr. Kunna Chinniah
Mr. Kunna Chinniah is Executive Vice President with GIC Special Investments ("GIC SI"). GIC
SI is the private equity arm of the Government of Singapore Investment Corporation ("GIC").
Mr Chinniah oversees the Asian private equity business for GIC SI. Mr Chinniah began his
career in 1982 as a Senior Field Engineer with Schlumberger Wire line Services in the Middle
East. He joined GIC in 1989 and between 1989 and 1997; he held various positions with the
Special Investments Department of GIC in the North America and Europe Divisions including
the position of Regional Manager, on separate occasions, for Europe and North America,
overseeing private equity investments in both regions. He was also GIC's representative in
Frankfurt. He was based in Frankfurt from March 1992 to February 1995 and in San Francisco
from November 1989 to April 1991 and from March 1995 to November 1997. His last position
prior to his return to Singapore in November 1997 was Regional Manager, North America
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Division of the Special Investments Department. Mr Chinniah is a Chartered Financial Analyst.
He obtained his Bachelor of Engineering (Electrical) degree from the National University of
Singapore in 1982 and completed a Master of Business Administration in 1989 from the
University of California (Berkeley). In 1997, he attended the World Bank Executive Programme
conducted by Harvard University.
Mr. P.N. Venkatachalam
Mr. P.N. Venkatachalam has over 40 years of experience in the banking sector in India and
abroad. Mr. Venkatachalam joined the State Bank of India as a probationary officer on April
1967 and retired on March 2004 as a managing director. He served briefly as member of the
Interim Pension Fund Regulatory Authority of India, New Delhi in 2004 and has served as a
director on the board of Small Industries Development Bank of India. Mr. Venkatachalam is
presently the Chairman of Laser Soft Info systems Limited and a director of Khazana Jewellery
Private Limited. He holds a Masters of Arts degree in Economics and is a Certified Associate
from the Indian Institute of Bankers.Mr. Venkatachalam joined our Board on August 9, 2007.
Mr. Berjis Desai
Mr. Berjis Desai is an Independent Director on the Board of Directors of the Company. Mr.
Desai is the Managing Partner, J. Sagar & Associates, one of India's leading law firms. He holds
a Masters in Law. He is an Advocate and a Solicitor. He has been in practice for 30 years and has
rich and varied experience in the legal field, with particular emphasis on corporate law and
legislation related to Merger & Acquisition, derivatives, securities & financial laws, international
business laws and international commercial arbitration. Mr. Desai is also on the Board of various
listed companies as an Independent Director.
Mr. Sanjiv Misra
Mr. Sanjiv Misra is finance professional with over 25 years of Asia Pacific and global experience
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with organizations like Citigroup, Salomon Brothers and Goldman Sachs. Mr. Misra is currently
the President of Phoenix Advisers Pte Ltd, an advisory and principal investing firm. He is also a
member of the Board of Trustees of Singapore Management University (SMU), the SMU
Enterprise Board, the Board of Directors of the National University Health System (NUHS), and
the Investment and Audit Committee of the Ministry of Health Holdings (MOHH) of the
Government of Singapore. He is also a member of the Investment (IC) Committee of SMU and
Chairman of the Audit and Risk Committee of NUHS and a former member of the Board of
Directors of Global Investments Ltd.
Mr. Misra is a Senior Advisor with Apollo Management; he is also Chairman-Asia, and a
member of the Board of Directors of Unitus Capital, a financial advisory and investment firm
targeting social businesses and impact investing opportunities.
Prior to joining Phoenix Advisers, Mr. Misra spent eleven years at Citigroup where he headed
several key businesses. His last assignment was as the Head of the Asia Pacific Corporate Bank
where he managed a team of over 400 bankers in the Hong Kong hub and across 16 countries in
Asia Pacific.
He also headed the Asia Pacific Investment Banking at Citigroup/Salomon Smith Barney. Prior
to joining Salomon Brothers in 1997, Mr. Misra spent over 10 years in the Investment Banking
Division at Goldman Sachs & Co in New York, Hong Kong and Singapore. During this stint he
was responsible for establishing and heading the firm’s business presence in India, including the
establishment of Goldman Sachs' joint ventures in India. Mr. Misra holds a Bachelor of Arts.
degree in economics from St Stephen’s College, Delhi University, and a post-graduate diploma
in management from IIM, Ahmedabad and a Master of Management from the J L Kellogg
Graduate School of Management at Northwestern University.
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Investment Banking
Overview
Our Investment Banking business is dedicated to providing corporations, entrepreneurs and
investors, the highest quality independent financial advice and transaction execution. Our
professionals offer a full range of services and transaction expertise, including private
placements of equity, capital raising services in public markets, mezzanine and convertible
debt, mergers and acquisition and restructuring advisory services. We have a track record
of successfully closing more than 100 transactions to date.
Our focused effort and research-driven approach enable our professionals to be among the
most knowledgeable and best in the business. Our business has been built on strong
relationships, innovation, and uncompromising ethical standards. We aim to create
significant value for entrepreneurs and mature companies by helping them execute the right
capitalization strategy.
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Offerings
Private Equity Advisory
A pioneer in Private Equity advisory since its inception 11 years ago with an established
leadership position in today's context.
We have been a leading Private Equity advisor for over a decade and have developed a strong
expertise across industries which enable us to recognize emerging industry themes and position
transactions within the context. Our strength in Private Equity advisory stems from:
Long standing relationships with marquee PE funds - Access to key decision makers at PE funds
gives us an unparalleled edge in optimal structuring and efficient closure of transactions.
High quality execution - An experienced team of professionals ensures complete
confidentiality, strong focus on implementation and quick turnaround time.
Focus on long term relationships - In addition to handholding the client across the entire
transaction process, we provide continued support post-transaction and have the capability to
cater to investment banking needs of the client throughout his business lifecycle.
Having achieved a leadership position in the Private Equity advisory market, we believe that we
are ideally placed to advise promoters and companies on the key considerations in a PE fund
raising exercise.
Transactions
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Private Equity Advisory
Transaction Closure: Capital Raise of INR 2,600 million for UFO Moviez India Limited
from Providence Equity Partners
Transaction Closure: Capital raising of INR 9,600 million for Coffee Day Resorts
Private Limited
Transaction Closure: Capital Raise of USD 75 million for SKS Microfinance
Transaction Closure: Capital raising of USD 6.25 million for Printo Document Services
Pvt. Ltd
Structured Finance Advisory
Transaction Closure: INR 1,200 million fund raiser for Coastal Projects Ltd
Transaction Closure: Syndicated Rupee Term Loan facility of INR 5,810 million for Jal
Power Corporation Limited
Transaction Closure: Syndicated term loan facility for Bhoruka Power Corporation
Limited
Mergers and Acquisitions Advisory
Transaction Closure: Acquisition of 36.03% stake in Sical Logistics Limited by Tanglin
Retail Reality Developments Private Limited
Transaction Closure: Sale of 38% stake in Spicejet to Kalanithi Maran and associates
Transaction Closure: Preferential Allotment of 20.8% stake in Maytas Infra to Saudi
Binladin Group
27
Transaction Closure: Sale of DBS Cholamandalam Asset Management Company
Transaction Closure : Sale of XCEL Telecom by Horse-Shoe Capital (an affiliate of Q
Investments) to American Tower Mauritius
Transaction Closure: Acquisition of People Support, Inc. by Aegis BPO Services
Limited for USD 250 mn
Transaction Closure: Acquisition of ebusinessware Inc. by Mascon Global Ltd.
Equity Capital Markets
Transaction Closure: Open Offer to the shareholders of IL&FS Engineering and
Construction Company Limited (formerly known as Maytas Infra Limited) (”Target
Company”)
Transaction Closure: Rights Issue by The Karnataka Bank Limited of INR 4,570.4
million
Transaction Closure: Initial Public Offering of INR 3,000 million by Claris Life
sciences Limited
Transaction Closure: Initial Public Offering of INR 12,375.14 million by MOIL
Limited
Transaction Closure: Open Offer for Everonn Education Limited
Transaction Closure: Qualified Institutions Placement for Usher Agro Limited
Transaction Closure: Initial Public Offering of INR 1,724 million by Commercial
Engineers & Body Builders Co Limited
Transaction Closure: Qualified Institutions Placement for Parsvnath Developers
Limited
Transaction Closure: Initial Public Offering of INR 2,852.77 million by Electro steel
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Steels Limited
Transaction Closure: Qualified Institutions Placement for S. Kumars Nationwide
Limited
Transaction Closure: Rights Issue by Gulf Oil Corporation Limited of INR 793.2
million
Transaction Closure: Open Offer for AGC Networks Limited
Transaction Closure: Initial Public Offering of INR 2,699 million by Hindustan Media
Ventures Limited
Transaction Closure: Initial Public Offering of INR 1,079 million by Mandhana
Industries Limited
Transaction Closure: Qualified Institutions Placement for Marg Limited
Transaction Closure: Qualified Institutions Placement for Alok Industries Limited
Transaction Closure: Further Public Offer of INR 99,304 million through an Offer for
Sale by the Government of India in NMDC Ltd.
Transaction Closure: Initial Public Offering of INR 3,249.8 million by United Bank of
India
Transaction Closure: Initial Public Offering of INR 1,417.5 million by Man
Infraconstruction Limited
Transaction Closure: Qualified Institutions Placement of NCDs along with Warrants for
Electro steel Castings Limited
Transaction Closure: Qualified Institutions Placement for The Karnataka Bank Limited
Transaction Closure: Rights Issue by City Union Bank Limited of INR 480 million
Transaction Closure: Qualified Institutions Placement for Bajaj Electricals Limited
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Transaction Closure: Qualified Institutions Placement for Adhunik Metaliks Limited
Transaction Closure: Buy-Back of Equity Shares by Alembic Limited
Transaction Closure: Qualified Institutions Placement for Development Credit Bank
Limited
Transaction Closure: Rights Issue by Wire and Wireless (India) Limited of INR 4,498.5
million
Transaction Closure: Qualified Institutions Placement for Allied Digital Services
Limited
Transaction Closure: Qualified Institutional Placement for Parsvnath Developers
Limited
Transaction Closure: Qualified Institutional Placement for PSL Limited
Transaction Closure: Qualified Institutional Placement for Orbit Corporation Limited
Transaction Closure: Rights Issue by Alok Industries Limited of INR 4,495.9 million
Infrastructure Advisory
Transaction Closure: Capital Raise of USD 40 million for NSL Renewable Power
Private Limited
Transaction Closure: Capital Raising of INR 5,800 million for MB Power (Madhya
Pradesh) Limited
Transaction Closure: Capital Raising of INR 13,500 million for Moser Baer Projects
Private Limited
Transaction Closure: Capital raising of INR 1,500 million for Karaikal Port Private
Limited
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Debt Restructuring Advisory
Transaction Closure: Corporate Debt Restructuring Advisory for Wockhardt Limited
Institutional Equities
Overview
Edelweiss Securities Ltd., a subsidiary of Edelweiss Financial Services Ltd., is the equities arm
of the Edelweiss Group. The company is a corporate member of both The Bombay Stock
Exchange and The National Stock Exchange of India Limited, providing equity broking and
research services, as well as marketing of equity related products, including IPOs/FCCBs, to
domestic and foreign institutional investors.
Institutional Equities – Insightful Research. Winning Strategies
In our approach lies our difference. In a short span of six years, Edelweiss Financial Services’
Institutional Equities Business (IE) has become one of the top five domestic brokerage houses
and top three derivatives desks. We are the only brokerage on the Street with a quant desk that
provides a wide product range, servicing all investor categories. Our innovative mindset,
unparalleled research, agile sales teams, and intensive execution systems have enabled us to
relentlessly service our clients in newer and different ways.
We cater to a wide clientele comprising leading domestic and international institutional
investors, including Pension Funds, Hedge Funds, Mutual Funds, insurance companies, and
banks.
Experienced Sales Team
Sales Team – Our people are your people
Backed by significant collective experience, we have developed a strong ‘buy-side’ orientation
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towards servicing our clients. Our employees work for our clients, servicing them across
spectrum. Our people are well-trained to understand our clients’ needs and provide them
innovative products in a customized manner. Moreover, at every level of service, there is senior
level engagement and interest, ensuring quality output.
Our already established regional teams in India, APAC, US, Europe emphasizes our focus on
those markets.
Multi Strategy Execution
Seamless Execution – every single time
With an aggressive and passionate sales trading team, we are able to seamlessly execute complex
trades, across the entire spectrum of trading strategies. With the depth of our client base and the
support of our industry networks, our sales trading team is able to provide liquidity, industry
leading insights and analytics and added value across the spectrum of equity markets. This has
enabled us to significantly increase our market share in the secondary market. With large teams
to handle peak loads and intensive execution, we make pennies count.
Cutting Edge Derivatives
ADD, our specialized alternative investments desk, offers differentiated research and execution
services on the various derivatives products listed on NSE. With the help of its specialized
quantitative research desk, ADD combines, capital markets intelligence, structured derivative
products and economic/corporate developments to create insightful data points creating
investment and arbitrage opportunities
Asset Management
Overview
Edelweiss Asset Management offers a range of investment products and advisory services across
the risk return spectrum to individual and institutional investors. Our close focus on client
requirements is our inspiration in designing products which offer the best opportunity for asset
32
growth with a constant focus on risk and preservation of capital.
Over the past 7 years we have significantly strengthened our equity product offerings to cover
the entire gamut of products. We have developed significant expertise in providing advisory
services in the alternative investments space through a deep knowledge of nontraditional asset
classes such.
Our products are designed to provide our clients with superior performance through market
cycles by virtue of our deep understanding of the equities markets and our analytical approach to
risks and return.
Offering
Portfolio Management
Edelweiss offers the discerning investor an opportunity to access its asset management expertise
through its portfolio management service (PMS). The basic objective of this product is to
provide unbiased investment management strategy based on rigorous fundamental analysis while
taking cognizance of market conditions and movements.
The PMS team in addition to its own research capability also has access to the Edelweiss
Research team covering a universe of about 50 key Large Cap and Mid Cap companies across
sectors like IT, Engineering, Auto, Oil & Gas, Banking, Pharmaceuticals. The structure of
portfolio management uses a combination of the top-down and the bottom-up approach to arrive
at a basket of investment worthy stocks. The team is committed to a strong discipline in booking
profits and on focusing on client servicing and wealth enhancement.
WhyPMS?
Bespoke Advice - Discretionary Portfolio Services give you the benefit of investment advice
designed to achieve your financial objectives.
Professional Management - The service provides professional management of equity
portfolios with the objective of delivering consistent long-term performance while controlling
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risk.
Continuous Monitoring - We recognize that portfolios need to be constantly monitored and
periodic changes made to optimize the results.
Risk Control - Risk team is responsible for establishing our investment strategy and providing
us real time information to support our portfolio managers.
What differentiates the Edelweiss PMS from investments in Mutual Funds?
‘Personal’ Fund Manager – The client’s portfolio is professionally managed by a fund
manager who is easily accessible to the investor unlike in a Mutual Fund in addition to which we
provide a designated Relationship Manager for the client who can offer asset allocation advisory
on your entire portfolio
Superior Returns – Portfolio returns are protected in volatile markets through hedging in
derivatives and short-term capital gains can be set-off against business income for clients in a
PMS as compared to Mutual Fund
Mutual funds
Overview:
Edelweiss Asset Management Limited (EAML), a subsidiary of Edelweiss Financial
Services Limited is the Investment Manager to Edelweiss Mutual Fund (EMF).
Edelweiss Asset Management Limited follows a research based and process oriented investment
approach. Edelweiss Asset Management Limited is committed to observe the highest ethical
standards while deploying investors’ monies, servicing investors and dealing with business
partners.
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Edelweiss Asset Management Limited constitutes a team of experienced professionals from the
financial services industry. The management team is highly qualified and carries a rich
experience of working in the mutual fund industry and finance related areas. EAML is
committed to “Power your Investment Quotient” by guiding investors with the right knowledge
to spot the best investment opportunity. EAML endeavors to offer investors a wide range of
solutions across asset classes while following a disciplined and process oriented investment
approach to help investors achieve their financial goals.
Vision Statement :
To be an innovative and universally renowned asset manager providing excellent
investment solutions, exemplary services and setting the highest ethical standards.
Mission Statement :
Provide high quality investment management services to a wide spectrum of investors
Assess investor’s acceptable risk parameters and endeavor to help achieve their financial
goals
Adhere to a disciplined investment process to steadily grow our investor’s assets
Committed to offer exemplary services to our customers and setting the highest standards
of ethics
We firmly believe that by placing the best interests of our customer first, we will also serve the
best interests of our employees, stakeholders and our community.
Guiding Principles:
Thinking and Transparent organization
Ethical in all our actions
Fair to our Investors, Partners and Employees
Focus on growth
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Creativity and Innovation in everything we do
Our assets are our Stakeholders, Reputation and Capital
Other Products
Edelweiss offers a range of structured products to the discerning investor. These synthetic
investment instruments are created to meet specific investor needs. Structured products are used
as an additional asset class with an allocation tool to direct investments in the markets. By their
very nature they reduce portfolio risks as well as capture market trends. These bespoke products
offer principal protection with enhanced returns along with a strong emphasis on risk
management and risk.Structured products are ideal for cautious investors who wish to participate
in the markets but would like to protect their capital. Structured Investments can be tailor-made
to meet a specific investor's requirements. Several investment strategies can be accomplished
using customized structured investments, including the following :
Protection: Many investors choose to protect a portfolio by hedging the risks of existing
investments.
Diversification: Structured notes can help diversify risk/reward profiles of the investor during
market cycles.
Market View: Structuring can offer the flexibility to capitalize on a specific market view with
limited risk.
Growth: A core feature of many structured investments is to gain a percentage of an asset's
upside while protecting the downside.
Income: Several structures offer the ability to achieve above-market returns through periodic
income payments, often in exchange for assuming principal risk.
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Wealth Management
Overview
At Edelweiss, Wealth Management is a Practice
It is a specialized profession where our experts combine their efforts to meet the wealth planning,
investment, and financial management needs of individuals, families, family offices, or
corporates.
Edelweiss Wealth Management takes one step closer to you, by providing an "all-in-one
approach”.
Customized Financial Solutions
Advice on asset allocation and thereby creating customized financial solutions for HNWIs, NRIs,
Trusts and Corporates
Wide range of Innovative Advisory services
We offer advisory services on Structured Products, Portfolio Management, Mutual Funds,
Insurance, Derivative Strategies, Direct Equity, IPOs, Real Estate Funds and Art Funds.
Based on our holistic investment approach we advise you, using a mix of asset classes &
innovative products.
A Dedicated Edelweiss Wealth Manager (EWM) working for You
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Advisory Services
Portfolio Management Services
Advise on Portfolio Management Services
Direct Equity
Providing in-house research based advice on select stocks
Structured Products
Products that offer our clients unique risk-reward equations that are customized to their
investment objectives
Mutual Funds
Research based recommendations on Top Picks in Mutual Funds
Insurance
Life & General Insurance Advisory
Real Estate Funds
Advise on Investment in Real Estate through Fund Structure
IPOs
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Advising & facilitating financing on select IPOs based on our in-house research
Art Funds
Advise on Investment in Art through Fund Structure
Derivatives Strategies
Advise on Arbitrage Strategies offering superior risk-return characteristics
Advisory Process
Identify lifestyle Goals
- Identify and quantify lifestyle goals
- Detail current personal & financial situation
Assess Identify Key Issues
Evaluate current financial position
Review wealth creation, retirement estate planning
Review tax structures e.g. individual, family offices & private companies
Analysis & Planning
- Assess financial strategy options to meet goals gap analysis
- Identify most appropriate investments to match risk profile
Wealth Management Strategy
- Tailored financial strategies to achieve stated goals
- Detail recommended asset allocation & investments
- Wealth creation& estate planning advise to protect wealth
Strategy Presentation & Implementation
- Strategies & rationale discussed
- Wealth Manager facilitates the implementation of all recommendations
Review
- Review progress towards achieving lifestyle goals
- Review appropriateness of asset allocation & investments
- Review new goals
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Private Client Brokerage
Overview
The Private Client Services Group at Edelweiss is focused on providing products, strategies and
services to High Net worth Individuals and Corporate Clients. We have geographic reach
through our Branches, Channel Partners & Investment Consultants in over 19 locations in India.
The PCG team has highly trained equity professionals, who act as your Equity Advisor. Our ESL
Equity Advisor proactively helps you take informed investment decisions and build a healthy
portfolio.
We draw on our strong presence and industry leadership to develop a portfolio of offerings
designed to serve the spectrum of financial needs.
Our main objective is to provide clients with all the tools and services they need to reduce the
administrative burdens of managing money and focus on what you do best - maximizing your
trading performance, building your business, and attracting new sources of capital.
Our investment philosophy is rooted in the following:
Capital preservation is key - Capital gains follow from a well-thought out investment
strategy.
Invest in stocks with a long term view.
Use a combination of top-down and bottom-up approach to arrive at a basket of
investment worthy stocks
Invest on the basis of fundamental analysis of companies taking into account market
sentiments.
Maintain discipline in booking profits and use index futures to manage short term
volatility.
Offerings
Our Private Client Group is customized to meet each High Net worth Individual’s needs and is
delivered through an Edelweiss Relationship Manager. He brings together a wide range of
financial solutions and tools, research capabilities and investment expertise, besides being a
40
single point contact for all products and services.
Service offering under PCG
Cash Equity Advisory
Derivative Strategies
Financing Products
Advisory services besides Equity would also include Arbitrage and Fixed Income products. Real
Estate investments, Art Investments, PMS and Client asset management & Depository Services
are other services that the group offers in conjunction with other groups at Edelweiss.
1. Cash Equity Advisory
Providing research based advice on select stocks from across sectors to meet client’s investment
requirement ranging from positional trading to long term investment goals. For our clients we
provide ongoing portfolio consultation with a dedicated relationship manager as one point
contact for all day-to-day execution of trades and other service requirements such as advisory on
investments. The Edelweiss Relationship Manager draws on substantial Edelweiss resources and
provides our clients with:
Ongoing portfolio consultation
Access to Edelweiss research and interaction with research analysts
Meetings with company management and plant visits
Participation in earnings conference calls of companies
2. Derivatives Strategies
Edelweiss being a pioneer in Quantitative & Alternative Research, we leverage this strength for
our derivatives strategies focused towards short-term / medium investments of clients in PCG.
Derivative Strategy group, through its dedicated research team provides seamless execution for
its clients with trading view. The stock ideas generated are enhanced by combination of technical
view and derivative strategy along with the statistical data. Based on the Quantitative Research
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products such as Pair Trades & Alpha Trades are also initiated whenever we identify the
opportunity.
3. Financing products
Financing
Overview
Edelweiss Housing Finance Limited (EHFL) is a Housing Finance Company incorporated under
the aegis of the National Housing Bank (NHB). It is part of the Edelweiss Group of Companies.
EHFL has an array of loan solutions which can be tailored to your requirements. If you’re
looking for a Home Loan, do apply to EHFL for the highest loan amount in the shortest time.
Offering
Loan
- Home Loans
Variable Rate Home loans
Fixed Rate Home loans
Fixed Variable Combo loans
- 25 year loans
The Newly launched 25 year Home loans help you purchase a property
and repay in lower / easily manageable installments
- Loan Against Property
Variable Rate Home loans
Fixed Rate Home loans
Fixed- Variable Combo loans
Re-financing
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- If you have already purchased a property and used your own funds or borrowed
from friends or relatives for the same, we could re-finance the same
Balance Transfer & Top Up
- If you already have a Home loan or a Loan against Property running with any
Bank or other financier, you could move the same to EHFL a better rate of
interest and a longer tenor, giving you the advantage of a lower EMI.
- You can also avail of an additional ("Top-Up")loan against same property
Rate of Interest
Floating rate of Interest: Floating interest rates vary depending on market conditions.
Thus the interest rate on your loan will change at pre-determined, regular intervals
Fixed rate of Interest: For those who are averse to changing rates, we also offer fixed
rates, a fixed interest rate will not change in the life of the loan
Fixed-Variable Combos: This is for those who want the best of both the worlds. A fixed
variable Combo rate is fixed for the initial two years and is variable after that.
Fair Practices Code
ECL Finance Limited (the Company), in pursuance of the directions issued by Reserve Bank of
India for Non-Banking Financial Companies (NBFCs), has adopted the following code for fair
practices while dealing with customers. The Fair Practice Code (FPC) is intended to cover the
following areas:
Applications for loans and their processing
Loan appraisal and terms/conditions
Disbursement of loans, including changes in terms and conditions
General provisions and
Grievance redressed mechanism
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1. Applications for loans and their processing
All relevant information pertaining to the loan will be made available in the relevant loan
application form(s) or through other modes (term sheet, etc.), including the necessary loan
information and documents required to be submitted together with the duly completed
application form.
Receipt of completed applications forms will be duly acknowledged. Applicants are required to
insist for an acknowledgement in this regard.
The acknowledgement would also indicate the approximate timeframe within which the
applicant should contact the company at its registered office to ascertain the status of the loan
application.
2. Loan appraisal and terms/conditions
Loan applications shall be assessed in accordance with the company's credit appraisal process
and policies.
Upon approval of the loan, an agreement/sanction letter indicating the amount of loan
sanctioned, annualized rate of interest applicable, including method of application thereof, along
with the terms and conditions, shall be conveyed to the applicant in writing. A written
acceptance of such terms and conditions shall be retained by the company.
3. Disbursement of loans, including changes in terms and conditions
Any changes to the terms and conditions, including disbursement schedule, interest rates, service
charges, prepayment charges, etc., shall be informed individually to the borrowers in case of
account specific changes, and in case of others, the same shall be available at the registered
office / corporate office of the Company or on website or be disseminated through print media if
the Company so decide.
Changes in the interest rates and charges shall be effected prospectively.
Decision to recall / accelerate payment or performance under the agreement shall be in
44
accordance with the terms and conditions duly acknowledged by the borrower.
All securities pertaining to the loan would be released on receipt of full and final payment of the
loans, subject to any legitimate right or lien, and set-off for any other claim that the company
may have against the borrowers. If such right of set-off is to be exercised, the borrower shall be
given notice about the same, with full particulars about the remaining claims and the conditions
under which the Company is entitled to retain the securities until the relevant claim is settled /
paid.
4. General provisions
The Company shall not discriminate in extending products and facilities including loan facilities
to the physically / visually challenged applicants on the grounds of disability. They shall be
treated at par with the other applicant and their application shall be dealt on merit as per the
credit process and policy of the Company. All possible assistance will be provided to the
applicant with the disability (is) for availing of the various financial product and business
facilities offered by the Company.
5. Disbursement of loans, including changes in terms and conditions
The Company shall refrain from interference in the affairs of the borrower, except for the
purposes provided in the terms and conditions of the loan sanction documents (unless new
information, not earlier disclosed by the borrower, has come to the notice of the Company).
In case of receipt of request from the borrower for transfer of borrowable account, the consent or
otherwise, i.e. objection of the Company, if any, shall be conveyed within 21 days from the date
of receipt In the matter of recovery of loans, the Company shall not resort to undue harassment
and would operate within the legal framework.
6.Grievance Redressal
In case of any complaint/grievance, the applicant/borrowers including the applicants with
45
disability(ies) may contact our Registered Office through any of the following three channels:
Telephone: 022 - 40094400
Fax: 022 - 42273838
Mail: ECL Finance Ltd, Edelweiss House, Off. C.S.T Road, Kalina, Mumbai - 400 098
E-mail to: Eclf.grievancecell@edelcap.com
After examining the matter, it will be our endeavor to provide the borrower / applicant with our
final or other response, within a period of two (2) weeks and within a maximum period of six (6)
weeks from receipt of such complaint/grievance.
This code shall be effective from October 14, 2006. The Company shall provide for periodical
review of the compliance of this Fair Practice Code and the functioning of the grievance
redressal mechanism at various levels of management.
Grievance Redressal Procedure
In case of any complaint/grievance, the customer may contact our Corporate Office through any
of the following four channels: telephone: 022 - 4342 8393
Fax: 022 - 4342 8500, to the attention of Mr. Nilesh KUMAR Jain
Email: home@edelcap.com
Mail: Edelweiss Housing Finance Ltd, One India Bulls Centre, 5th Floor, Jupiter Mill
46
Compound, 841, Senapati Bapat Marg, Elphinstone Road, Mumbai - 400 013.
After examining the matter, it will be our endeavor to provide the customer with our final or
other response, within a period of six (6) weeks from receipt of such complaint/grievance.
Interest Rates
Housing Loan: 10.5%*
Loan Against Property: 12%*
Client Advisory Services
Overview
At Edelweiss Client Advisory Services, our team is driven not just by the quality of our ideas,
but also professional ethics and integrity. We take pride in our philosophy of offering advice
which is in the best interest of our clients. Our emphasis on building long term relationship
ensures that we work closely with our clients empowering them to gain from market
opportunities through our online portal www.edelweiss.in
www.edelweiss.in is a product that offers a unique online investment experience that is intuitive,
information rich and a hassle-free way to trade online.
47
TYPE OF RESEARCH
Research
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Research is defined as human activity based on intellectual application in the investigation of
matter. The primary purpose for applied research is discovering, interpreting, and the
development of methods and systems for the advancement of human knowledge on a wide
variety of scientific matters of our world and the universe. Research can use the scientific
method, but need not do so. Scientific research relies on the application of the scientific method,
a harnessing of curiosity. This research provides scientific information and theories for the
explanation of the nature and the properties of the world around us. It makes practical
applications possible. Scientific research is funded by public authorities, by charitable
organizations and by private groups, including many companies. Scientific research can be
subdivided into different classifications according to their academic and application disciplines.
In this project the research type used is descriptive because this research is the most commonly
used and the basic reason for carrying out descriptive research is to identify the cause of
something that is happening. For instance, this research could be used in order to find out what
age group is buying a particular brand of cola, whether a company’s market share differs
between geographical regions or to discover how many competitors a company has in their
marketplace. However, if the research is to return useful results, whoever is conducting their
search must comply with strict research requirements in order to obtain the most accurate
figures/results possible.
DESCRIPTIVE RESEARCH
Descriptive research is used to obtain information concerning the current status of the
phenomena to describe "what exists" with respect to variables or conditions in a situation. The
methods involved range from the survey which describes the status quo, the correlation study
which investigates the relationship between variables, to developmental studies which seek to
determine changes over time.
Descriptive research can be of two types:
Quantitative descriptive research emphasizes on what is, and makes use of quantitative methods
to describe, record, analyze and interpret the present conditions.
49
Qualitative descriptive research also emphasizes on what is, but makes use of non-quantitative
research methods in describing the conditions of the present.
OBJECTIVE OF STUDY
To know the basic terminology of stock market.
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To make the investor aware about the factors this may affect their investment.
To get the knowledge of other markets such as commodity market and derivatives.
To know the ups and downs of stock market of last two years.
To forecast or predict the future trend of stock market which helps in investment.
To know the effect of these fluctuation on the Indian economy.
SCOPE OF STUDY
Derivatives
Sebi
Stock exchange
Commodity market
Stock market
Securities
Day trading
Factor affecting Indian stock market
Effect on Indian economy
LIMITATIONS
51
Limitations are the limiting lines that restrict the work in some way or other. In this research
study also there were some limiting factors; some of them are as under:
1. Data Collection:
The most important constraint in this study was data collection as Secondary data was selected
for study. Secondary data means data that are already available i.e. they refer to the data which
have already been collected and analyzed by someone else.
2. Time Period:
Time period was one of the main factors as only one month was allotted and the topic covered in
research has a wide scope. So, it was not possible to cover it in a short span of time.
3. Reliability:
The data collected in research work was secondary data, so, this puts a question mark on the
reliability of this data, which a very important factor of this study as conclusion has been derived
from this secondary data only.
4. Accuracy:
The facts and findings of the data cannot be accepted as accurate to some extent as firstly,
secondary data was collected. Secondly, for doing descriptive research time needed to be more,
because in short period you cannot cover each point accurately.
What is SWOT ANALYSIS?
52
SWOT analysis is a strategic planning method used to evaluate the Strengths, Weaknesses,
Opportunities, and Threats involved in a project or in a business venture. It involves specifying
the objective of the business venture or project and identifying the internal and external factors
that are favorable and unfavorable to achieve that objective.
S- STRENGTHS
Strengths are the characteristics of the business or team that give it an advantage over others in
the industry.
W- WEAKNESSES
Weaknesses are characteristics that place the firm at a disadvantage relative to others.
O-OPPORTUNITIES
Opportunities are those external chances to make greater sales or profits in the environment.
T-THREATS
Threats are those external elements in the environment that could cause trouble for the business.
SWOT analysis is a method for analyzing a business, its resources, and its environment.
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SWOT is commonly used as part of strategic planning and looks at:
• Internal strengths
• Internal weaknesses
• Opportunities in the external environment
• Threats in the external environment
SWOT can help management in a business discover:
• What the business does better than the competition
• What competitors do better than the business
• Whether the business is making the most of the opportunities available
• How a business should respond to changes in its external environmen
The result of the analysis is a matrix of positive and negative factors for
management to address:
Positive factors Negative factors
Internal factors Strengths Weaknesses
External factors Opportunities Threats
The key point to remember about SWOT is that:
Strengths and weaknesses
Are internal to the business
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Relate to the present situation
Opportunities and threats
Are external to the business
Relate to changes in the environment which will impact the business
Using SWOT analysis
There is no point producing a SWOT analysis unless it is actioned! SWOT analysis should be
more than a list - it is an analytical technique to support strategic decisions
Strategy should be devised around strengths and opportunities
The key words are match and convert:
A key challenge for any business is to convert weaknesses into strengths.
SWOT Analysis:
(A) Strength:
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• The Company is well experienced and engaged in manufacturing and exporting of
Socks.
• Already established marketing network.
(B) Weakness:
• Fall of sales value, competition from Far-east. Increase in basic expenses.
• Lack of export Orders.
(C) Opportunities:
• Continuous research and development are carried out for introduction of innovative
design, special yarns for latest products.
(D) Threats:
• The products may face competition from existing and new entrants in this filed.
• Any unfavorable change in Govt. policies may affect the profitability of the Company.
• The company has been declared as sick unit.
The reasons for stock prices going "up" and "down"
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Stock prices change every day because of market forces. By this we mean that stock
prices change because of “supply and demand”. If more people want to buy a stock
(demand) than sell it (supply), then the price moves up!
Conversely, if more people wanted to sell a stock than buy it, there would be greater
supply than demand, and the price would fall. (Basics of economics!)
Understanding supply and demand is easy. What is difficult to understand is what makes
people like a particular stock and dislike another stock. If you understand this, you will
know what people are buying and what people are selling. If you know this you will
know what prices go up and what prices go down!
To figure out the likes and dislikes of people, you have to figure out what news is
positive for a company and what news is negative and how any news about a company
will be interpreted by the people.
The most important factor that affects the value of a company is its earnings. Earnings are
the profit a company makes, and in the long run no company can survive without them. It
makes sense when you think about it. If a company never makes money, it isn't going to
stay in business. Public companies are required to report their earnings four times a year
(once each quarter).
Dalal Street watches with great attention at these times, which are referred to as earnings
seasons. The reason behind this is that analysts base their future value of a company on
their earnings projection.
If a company's results are better than expected, the price jumps up. If a company's results
disappoint and are worse than expected, then the price will fall.
Of course, it's not just earnings that can change the feeling people have about a stock. It
would be a rather simple world if this were the case! During the “dotcom bubble”, for
example, the stock price of dozens of internet companies rose without ever making even
the smallest profit.
As we all know, these high stock prices did not hold, and most internet companies saw
their values shrink to a fraction of their highs. Still, this fact demonstrates that there are
factors other than current earnings that influence stocks.
So, what are "all the factors" that affect the stock’s price? The best answer is that nobody
really knows for sure. Some believe that it isn't possible to predict how stock prices will
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change, while others think that by drawing charts and looking at past price movements,
you can determine when to buy and sell. The only thing we do know is that stocks are
volatile and can change in price very very rapidly.
The reasons for which companies issue stocks
Why would the founders share the profits with thousands of people when they could keep profits
to themselves?
The reason is that at some point every company needs to "raise money". To do this, companies
can either borrow it from somebody or raise it by selling part of the company, which is known as
issuing stock .A company can borrow by taking a loan from a bank or by issuing bonds. Both
methods come under "debt financing". On the other hand, issuing stock is called “equity
financing”.
Issuing stock is advantageous for the company because it does not require the company to pay
back the money or make interest payments along the way.
All that the shareholders get in return for their money is the hope that the shares will someday be
worth more than what they paid for them. The first sale of a stock, which is issued by the private
company itself, is called the Initial Public Offering (IPO).
It is important that you understand the distinction between a company financing through debt and
financing through equity. When you buy a debt investment such as a bond, you are guaranteed
the return of your money (the principal) along with promised interest payments.This isn't the
case with an equity investment. By becoming an owner, you assume the risk of the company not
being successful - just as a small business owner isn't guaranteed a return, neither is a
shareholder. Shareholders earn a lot if a company is successful, but they also stand to lose their
entire investment if the company isn't successful.
Stock Picking –Having understood all the basics of the stock market and the risk involved,
now we will go into stock picking and how to pick the right stock. Before picking the right stock
you need to do some analysis.
There are two major types of analysis:
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1. Fundamental Analysis
2. Technical Analysis
Fundamental analysis is the analysis of a stock on the basis of core financial and economic
analysis to predict the movement of stocks price.
On the other hand, Technical Analysis is the study of prices and volume, for forecasting of
future stock price or financial price movements.
Simply put, fundamental analysis looks at the actual company and tries to figure out what the
company price is going to be like in the future. On the other hand technical analysis look at the
stocks chart, peoples buying behavior etc. to try and figure out what the stock price is going to be
like in the future.
In this article we will go into the basics of “fundamental analysis”. Technical analysis is a little
more complicated. It is much more of an "art" than a science. It depends more on experience and
involves some statistics and mathematics, so explaining technical analysis is out of the scope of
this article.
Calculation of BSE SENSEX
This article explains how the value of the “BSE Sensex” or “sensitive index” is calculated. If you
are not sure what we mean by the Sensex or what the Sensex is all about, you can find this out by
reading our “How to make money in the stock market?” article.
The Sensex has a very important function. The Sensex is supposed to be an indicator of the
stocks in the BSE. It is supposed to show whether the stocks are generally going up, or generally
going down.
To show this accurately, the Sensex is calculated taking into consideration stock prices of
30different BSE listed companies. It is calculated using the “free-float market capitalization”
method. This is a worldwide accepted method as one of the best methods for calculating a stock
market index.
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Please note: The method used for calculating the Sensex and the 30 companies that are taken
into consideration are changed from time to time. This is done to make the Sensex an accurate
index and so that it represents the BSE stocks properly.
3 important things you must know and follow as a new investor!
You need to KNOW some “unforgettable basics” before you enter the world of investing in
stocks. The stock market is a field dominated by savvy investors who know the ins-and-outs of
the market. For people who are not “on the inside”, the stock market can be a VERY dangerous
place:
1) Don't even consider "tips" that tell you about "hot stocks". Consider the source: There are
many people in the market who put in all their time and effort in promoting certain
stocks. They do this because they have their money invested in those stocks. If they can
get enough people to buy the stock and they can get the stock price to rise, they will sell
the stock for a huge price the stock price will crash and they will walk off to promote
another stock.
2) Relying on the advice of others, no matter how well intentioned it may be, is almost
always a complete disaster. Make sure you dig in and really examine the "facts about the
companies" before you invest. Ignore press releases which have very little substance, and
rely on "hype" to tell the company's story.
And finally the most important tip!!!
3) Only invest money you can afford to lose!! Sure this is a basic point, but many people
miss it. You should only invest money that you can honestly afford to lose!! Everyone
enters into investments with the idea of earning big profits, but in many cases, this never
works. (Especially if you are new to investing in the stock market!)
Please understand that the above tips are tips for beginners. Once you really get into the stock
market you do not need to follow these rules anymore. But if you are a new investor, you MUST
follow these rules. They are for your own safety.
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But then again, nothing comes free. Everything has a price. You will have to lose some money
make some bad decisions and then only will you really understand the market. You cannot
understand the market by just looking at it from far. By following these rules, you will basically
not lose too much!
Derivatives
Commodities whose value is derived from the price of some underlying asset like securities,
commodities, bullion, currency, interest level, stock market index or anything else are known as
“Derivatives”.
In simpler form, derivatives are financial security such as an option or future whose value is
derived in part from the value and characteristics of another security, the underlying asset. It is a
generic term for a variety of financial instruments. Essentially, this means you buy a promise to
convey ownership of the asset, rather than the asset itself. The legal terms of a contract are much
more varied and flexible than the terms of property ownership. In fact, it’s this flexibility that
appeals to investors.
When a person invests in derivative, the underlying asset is usually a commodity, bond, stock, or
currency. He bet that the value derived from the underlying asset will increase or decrease by a
certain amount within a certain fixed period of time.
‘Futures’ and ‘options’ are two commodity traded types of derivatives. An ‘options’ contract
gives the owner the right to buy or sell an asset at a set price on or before a given date. On the
other hand, the owner of a ‘futures’ contract is obligated to buy or sell the asset.
The other examples of derivatives are warrants and convertible bonds (similar to shares in that
they are assets). But derivatives are usually contracts. Beyond this, the derivatives range is only
limited by the imagination of investment banks. It is likely that any person who has funds
invested an insurance policy or a pension fund that they are investing in, and exposed to,
derivatives – wittingly or unwittingly.
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Shares or bonds are financial assets where one can claim on another person or corporation; they
will be usually being fairly standardized and governed by the property of securities laws in an
appropriate country.
On the other hand, a contract is merely an agreement between two parties, where the contract
details may not be standardized. Derivatives securities or derivatives products are in real terms
contracts rather than solid as it fairly sounds.
India Commodity Market
The vast geographical extent of India and her huge population is aptly complemented by the size
of her market. The broadest classification of the Indian Market can be made in terms of the
commodity market and the bond market. Here, we shall deal with the former in a little detail.
The commodity market in India comprises of all palpable markets that we come across in our
daily lives. Such markets are social institutions that facilitate exchange of goods for money. The
cost of goods is estimated in terms of domestic currency. India Commodity Market can be
subdivided into the following two categories:
Wholesale Market
Retail Market
Let us now take a look at what the present scenario of each of the above markets is like .The
traditional wholesale market in India dealt with whole sellers who bought goods from the
farmers and manufacturers and then sold them to the retailers after making a profit in the
process. It was the retailers who finally sold the goods to the consumers. With the passage of
time the importance of whole sellers began to fade out for the following reasons:
- The whole sellers in most situations, acted as mere parasites that did not add any value to
the product but raised its price which was eventually faced by the consumers.
- The improvement in transport facilities made the retailers directly interact with the
producers and hence the need for whole sellers was not felt.
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In recent years, the extent of the retail market (both organized and unorganized) has evolved in
leaps and bounds. In fact, the success stories of the commodity market of India in recent years
has mainly centered on the growth generated by the Retail Sector. Almost every commodity
under the sun both agricultural and industrial is now being provided at well distributed retail
outlets throughout the country.
Moreover, the retail outlets belong to both the organized as well as the unorganized sector. The
unorganized retail outlets of the yesteryears consist of small shop owners who are price takers
where consumers face a highly competitive price structure. The organized sectors on the other
hand are owned by various business houses like Pantaloons, Reliance, Tata and others. Such
markets are usually selling a wide range of articles agricultural and manufactured, edible and
inedible, perishable and durable. Modern marketing strategies and other techniques of sales
promotion enable such markets to draw customers from every section of the society. However
the growth of such markets has still centered on the urban areas primarily due to infrastructural
limitations.
Considering the present growth rate, the total valuation of the Indian Retail Market is estimated
to cross Rs. 10,000 billion by the year 2010. Demand for commodities is likely to become four
times by 2010 than what it presently is.
Money Market
When the stock prices show a downward trend, then it becomes risky to keep savings
there .Although the stock market is associated with high risks and high returns , many are risk
averse and prefer to invest in the more secure money market .
The money market deals with very short term debt securities that mature in less than a year since
the money market is extremely safe, it yields very low returns unlike the bond market.
The money market securities that are issued by the government or financial institutions or large
corporations are very liquid. Since the money market securities trade at very high denominations,
it becomes very difficult for the individual investors to have access to it.
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The money market is a type of a dealer market where firms purchase securities in their own
account by assuming the risks themselves. Unlike the stock exchanges the money market
securities do not operate in exchanges or through brokers. Transactions take place over phone or
the electronic system.
One may browse through the following links to have more detailed information about money
market.
Money Market Definition
Money Market Definition is simply meant as the short-term debt market. Treasury Bills and
certificate of deposits are regarded as the instruments in the money market.
World Money Market
World Money Market has been providing origination, trading and the distribution of short-term
debt instruments across different regions over the world. Find detailed on the world money
market.
Money Market Index Money Market Index is a true indicator of the prevailing money market,
which renders a clear-cut idea on making investment.
make a good survey of the whole market. As you know that you cannot predict the stock market,
so in that case you need to know the functioning of the market. There are some major factors that
affect stock price. So let us discuss about the different factors affecting the stock price in this
article.
Demand and Supply
One of the major factors affecting stock price is demand and supply. The trend of the stock
market trading directly affects the price. When people are buying more stocks, then the price of
that particular stock increases. On the other hand if people are selling more stocks, then the price
of that stock falls. So, you should be very careful when you decide to invest in the Indian stock
market.
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Market Cap
Never try to guess the worth of a company simply by comparing the price of the stock. You
should always keep in mind that it is not the stock but the market capitalization of the company
that determines the worth of the company. So market cap is another factor that affects stock
price.
Market Capitalization
You probably think that you have never heard of the term “market capitalization” before. You
have! When you are talking about “mid-cap”, “small-cap” and “large-cap” stocks, you are
talking about market capitalization!
Market cap or market capitalization is simply the worth of a company in terms of its shares! To
put it in a simple way, if you were to buy all the shares of a particular company, what is the
amount you would have to pay? That amount is called the “market capitalization”!
To calculate the market cap of a particular company, simply multiply the “current share price” by
the “number of shares issued by the company”! Just to give you an idea, ONGC, has a market
cap of “Rs.170, 705.21 Cr” (when this article was written)
Depending on the value of the market cap, the company will either be a “mid-cap” or “large cap”
or “small-cap” company! Now the question is, how do YOU calculate the market cap of a
particular company? You don’t! Just go to a website like MoneyControl.com and look up the
company whose market cap you are interested in finding out! The figure in front of “Mkt. Cap”
will be the market cap value.
News
When you get positive news about a company then it can increase the buying interest in the
market. On the other hand, when there is a negative press release, it can ruin the prospect of a
stock. In this case you should remember that news should not matter much but the overall
performance of the company matters more. So, news is another factor affecting stock price.
Earning/Price Ratio
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Another important factor affecting stock price is the earning/price ratio. This gives you a fair
idea of a company’s share price when it is compared to its earnings. The stock becomes
undervalued if the price of the share is much lower than the earnings of a company. But if this is
the case, then it has the potential to rise in the near future. The stock becomes overvalued if the
price is much higher than the actual earning.
So, these are the major factors that affect stock price.
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 Styles
There 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
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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
trader’s .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. FINDINGS & SUGGESTIONS
• Aggressive Promotions: Edelweiss Broking Limited compared to its competitors
concentrates less on advertising and promotions, especially through electronic media. Its
competitors like Sharekhan, ICICI and Kotak are advertising aggressively through media. Hence
Edelweiss should concentrate more on advertising through print and electronic media.
• Tapping Rural Market: The Indian rural investors markets are relatively untapped, with
only small and private firms meeting the current demand. Edelweiss can gain the “First Mover
Advantage” over its competitors, especially in areas were commercial crops are grown and the
standard of living is high. These people do not have much option to invest other than banks and
post offices.
• Reduce the initial account opening charges: The charge for opening a trading and demat
account in Edelweiss is high compared to its competitors. This influences the potential investors
to open their account with another company which provides the same at lower prices. Thus it
acts as a mental barrier for potential customers, who tend to overlook all other benefits offered
by Edelweiss. Hence Edelweiss should consider reducing their account opening charges.
• Bring in more product differentiation: Product differentiation here means that Edelweiss
should bring in more customized services and more value proposition for large investors. It can
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reduce the brokerage charges for large investors which will encourage them to invest more in the
company.
Stock exchange
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A stock exchange, (formerly a securities exchange) is a corporation or mutual organization
which provides "trading" facilities for stock brokers and traders, to trade stocks and other
securities. Stock exchanges also provide facilities for the issue and redemption of securities as
well as other financial instruments and capital events including the payment of income and
dividends. The securities traded on a stock exchange include: shares issued by companies, unit
trusts, derivatives, pooled investment products and bonds. To be able to trade a security on a
certain stock exchange, it has to be listed there. Usually there is a central location at least for
record keeping, but trade is less and less linked to such a physical place, as modern markets are
electronic networks, which gives those advantages of speed and cost of transactions. Trade on an
exchange is by members only. 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.
A stock exchange is often the most important component of a stock market. Supply and demand
in stock markets are driven by various factors which, as in all free markets, affect the price of
stocks (see stock valuation).
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-the-counter.
This is the usual way that derivatives and bonds are traded. Increasingly, stock exchanges are
part of a global market for securities.
The 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,
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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 privately-held 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, is classical examples of corporate mismanagement. Company’s
likePets.com (2000), Enron Corporation (2001), One.Tel (2001), Sunbeam (2001), Webvan
(2001),
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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.
6. 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.
7. 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.
8. 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.
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Major Stock Exchanges : Year ended 31 December 2010
Rank Economy Stock Exchange Location
Market
Capitalization
(USD Billions)
Trade Value
(USD
Billions)
1 United States
EuropeNYSE Euronext New York City 15,970 19,813
2 United States
EuropeNASDAQ OMX New York City 4,931 13,439
3 Japan Tokyo Stock Exchange Tokyo 3,827 3,787
4 United
KingdomLondon Stock Exchange London 3,613 2,741
5 France Paris Stock Exchange Paris 2,900 102/day
6 China Shanghai Stock Exchange Shanghai 2,717 4,496
7 Hong Kong Hong Kong Stock Exchange Hong Kong 2,711 1,496
8 Canada Toronto Stock Exchange Toronto 2,170 1,368
9 India Bombay Stock Exchange Mumbai 1,631 258
10 IndiaNational Stock Exchange of
IndiaMumbai 1,596 801
11 Brazil BM&F Bovespa São Paulo 1,545868
12 Australia Australian Securities Sydney 1,454 1,242
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Rank Economy Stock Exchange Location
Market
Capitalization
(USD Billions)
Trade Value
(USD
Billions)
Exchange
13 Germany Deutsche Börse Frankfurt 1,4291,628
14 China Shenzhen Stock Exchange Shenzen 1,311 3,572
15 Switzerland SIX Swiss Exchange Zurich 1,229 788
16 Spain BME Spanish Exchanges Madrid 1,171 1,360
17 South Korea Korea Exchange Seoul 1,091 1,607
18 Russia MICEX Moscow 949 408
19 South Africa JSE Limited Johannesburg 925 340
Bombay Stock Exchange
Introduction
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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
demutualized entity incorporated under the provisions of the Companies Act, 1956, pursuant to
the BSE (Corporatization and Demutualization) Scheme, 2005 notified by the Securities and
Exchange Board of India (SEBI). With demutualization, BSE has two of world's best exchanges,
Deutsche Borse 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 sectorial indices. BSE
has entered into an index cooperation agreement with Deutsche Borse. 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 AR brand, has
created the 'I Shares AR BSE SENSEX India Tracker' which tracks the SENSEX. The ETF
enables investors in Hong Kong to take an exposure to the Indian equity market.
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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 long-term 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-cum-screen 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 corporates in sharing with BSE their
corporate announcement.
BSE also has a wide range of services to empower investors and facilitate smooth transactions:
Investor Services: The Department of Investor Services redresses grievances of investors.
BSEwas the first exchange in the country to provide an amount of Rs.1 million towards the
investor protection fund; it is an amount higher than that of any exchange in the country. BSE
launched a nationwide investor awareness programme- 'Safe Investing in the Stock Market'
under which264 programmes was held in more than 200 cities.
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The BSE On-line Trading (BOLT): BSE On-line Trading (BOLT) facilitates on-line screen
based trading in securities. BOLT is currently operating in 25,000 Trader Workstations located
across over 359 cities in India.
BSEWEBX.com: In February 2001, BSE introduced the worlds first centralized exchange based
Internet trading system, BSEWEBX.com. This initiative enables investors anywhere in the world
to trade on the BSE platform. Surveillance: BSE's On-Line Surveillance System (BOSS)
monitors on a real-time basis the price movements, volume positions and members' positions and
real-time measurement of default risk, market reconstruction and generation of cross market
alerts.
BSE Training Institute: BTI imparts capital market training and certification, in collaboration
with reputed management institutes and universities. It offers over 40 courses on various aspects
of the capital market and financial sector. More than 20,000 people have attended the BTI
programs.
Awards
The World Council of Corporate Governance has awarded the Golden Peacock Global CSR
Award for BSE's initiatives in Corporate Social Responsibility (CSR).
The Annual Reports and Accounts of BSE for the year ended March 31, 2006 and
March31 2007 have been awarded the ICAI awards for excellence in financial reporting.
The Human Resource Management at BSE has won the Asia - Pacific HRM awards for
its efforts in employer branding through talent management at work, health management
at work and excellence in HR through technology
Drawing from its rich past and its equally robust performance in the recent times, BSE
will continue to remain an icon in the Indian capital market.
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National Stock Exchange of India
National Stock Exchange Limited
Type: Stock Exchange
Location: Mumbai, India
Owner: National Stock Exchange of India Limited
Key people:Mr. Ravi Narain (Managing Director & CEO)
Currency: INR
No. of listings: 1587
Market Cap: US$ 1.46 trillion (2006)
Indexes
S&P CNX Nifty
CNX Nifty Junior
S&P CNX 500
Website http://www.nse-india.com/
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 Mumbai-based 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. 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 Euronext and Goldman Sachs who have
taken a stake in the NSE. As of 2006[update], the NSE VSAT terminals, 2799 in total, cover
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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%.
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FINDINGS & SUGGESTIONS
Aggressive Promotions: Edelweiss Broking Limited compared to its competitors
concentrates less on advertising and promotions, especially through electronic media. Its
competitors like Sharekhan, ICICI and Kotak are advertising aggressively through media.
Hence Edelweiss should concentrate more on advertising through print and electronic
media.
Tapping Rural Market: The Indian rural investors markets are relatively untapped, with
only small and private firms meeting the current demand. Edelweiss can gain the “First
Mover Advantage” over its competitors, especially in areas were commercial crops are
grown and the standard of living is high. These people do not have much option to invest
other than banks and post offices.
Reduce the initial account opening charges: The charge for opening a trading and
demat account in Edelweiss is high compared to its competitors. This influences the
potential investors to open their account with another company which provides the same
at lower prices. Thus it acts as a mental barrier for potential customers, who tend to
overlook all other benefits offered by Edelweiss. Hence Edelweiss should consider
reducing their account opening charges.
Bring in more product differentiation: Product differentiation here means that
Edelweiss should bring in more customized services and more value proposition for large
investors. It can reduce the brokerage charges for large investors which will encourage
them to invest more in the company.
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Conclusion:
Through this research we can conclude that:
Stock market fluctuates by the external environment.
Stock market is all about future prediction.
Stock market is very sensitive market.
It is based on “high risk and high return.”
Comparatively stock market is less risky than the other market and generates more money for
the economy
One who have good knowledge in stock market, may survive in the market and generates
profits or good return whether the market is down
Investors should not invest on the basis of rumors they must observe the market condition or
trends Indian economy and then invest if they want to generate good return.
Stock market fluctuates by the external environment.
Stock market is all about future prediction.
Stock market is very sensitive market.
It is based on “high risk and high return.”
Comparatively stock market is less risky than the other market and generates more
money for the economy
One who have good knowledge in stock market, may survive in the market and generates
profits or good return whether the market is down
Investors should not invest on the basis of rumors they must observe the market condition
or trends Indian economy and then invest if they want to generate good return.
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