“INVESTMENT IN CAPITAL MARKET IN INDIABULLS” AT INDIABULLS SECURITIES LTD.

8/13/2019 INVESTMENT IN CAPITAL MARKET IN INDIABULLS AT INDIABULLS SECURITIES LTD.

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INTRODUCTION

Indiabulls started in 1999 as an online broking firm. It soon ventured into offline broking, then

credit services, real estate, and lately into insurance (in JV with SocieteGenerale), a multi-

commodity exchange (in JV with MMTC) and so on. Now the group, co-founded by threeIITians,

Sameer Gehlaut, Rajeev Rattan and Saurabh Mittal, is looking at venturing into private equity

business.

Indiabulls Financial Services is the holding company of three other firms:

Indiabulls Securities, the broking and investment activities Indiabulls Insurance Advisors, a distributor of insurance products Indiabulls Commodities, a commodities trading broker

Indiabulls has emerged as one of the leading and fastest growing financial company in less than

two year, since its initial public offering in September 2004. It has a market capitalization of

around6,300 million(31st December, 2007) and consolidated net worth of the group is around

USD 905 million.

Indiabulls is India's leading Financial Services and Real Estate Company having over640 branches

all over India. Indiabulls serves the financial needs of more than4,50,000customerswith its wide

range of financial services and products from securities,derivatives trading, depositary services,

research & advisory services, consumer secured &unsecured credit, loan against shares and

mortgage & housing finance. With around 4000 Relationship Managers, Indiabulls helps its


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clients to satisfy their customized financial goals. Indiabulls through its group companies has

entered Indian Real Estate business in 2005. It is currently evaluating several large-scale projects

worth several hundred million dollars.

Business of the company has grown in leaps and bounds since its inception. Revenue of the

company grew at a CAGR of 159% from FY03 to FY07. During the same period, profitsof the

company grew at aCAGR of 184%.

"Indiabulls Financial Services Ltd"is listed on the National Stock Exchange, Bombay Stock

Exchange and Luxembourg Stock Exchange. Indiabulls and its group companies have attracted

more than USD 800 million of equity capital in Foreign Direct Investment (FDI) since March

2000. Some of the large shareholders of Indiabulls are the largest financial institutions of the

world such as Fidelity Funds, Goldman Sachs, Merrill Lynch, Morgan Stanley and Farallon

Capital.

Learning from organization

Being a part of treasury department of Indiabulls, I have learnt so many practical things

about managing a part of finance in a company. My leanings are as follows:

Managing excess cash flow-How does a company manage excess cash and how does it

meet shortage of funds.


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Analysis of daily cash report, it is a main document for daily investment for Indiabulls.

I got in hand experience of bank guarantees, RTGS (Real time gross settlement) and how

they help in doing safe investment.

Managing the wealth of finance group- like how much to invest in mutual fundsand in

which mutual funds? How much to put in Fixed deposit, etc.

I got to know certain general but important things like how to work in time constraints.

Like in Indiabulls we have time limit for doing certain part of total process after that it has no

value and it could cause loss to the company.

Apart from departmental work, I experienced to work in a competitive organization which has

added value to my experience.


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Contribution to organization

My project includes study of various investment opportunities available to investors in India. It

includes detail explanation of each asset class and their comparison on risk and

return parameter.

In Treasury department of Indiabulls one of the prime activities was to manage cash on day to

day basis. The excess cash we used to invest on daily basis in mutual funds. Now, there are several

schemes and types of mutual funds, what I have analyzed during my period that they invest in

liquid funds and that could be liquid or liquid plus or some cash scheme. To explore more options

for investment I have shown what return we can expect from other asset classes and have

compared other schemes of mutual funds to broaden the investment base. In the report I have

shown that liquid funds give return of 7-8% in 3yrs. Other funds such as balanced and equity

fund provides higher return of 24% and 39% respectively. Return is high in these funds but their

major disadvantage over liquid fund is lack of liquidity. Where liquid fund can be redeemed next

day, these funds can't be redeemed so early.

But if we want to do investment for long time period then we can opt for these funds. For a short

span of time Govt. securities are other good option because this provides more or less same return

from 6 to7% as liquid funds and are highly liquid asset class. Over the mutual funds they are less

risky because mutual funds performance depends upon market performance and govt. securities

promise certain fixed return The firms online trading and investment site-www.raligare.com-was

launched on Feb 8, 2000. The site gives access to superior content and transaction facility to retail

customers across the country. Known for its jargon-free, investor friendly language and high quality


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research, the site has a registered base of over one lakh customers. The number of trading members

currently stands at over 5000. While online trading currently accounts for just over 1 per cent of the daily

trading in stocks in India, Indiabulls alone accounts for 22 per cent of the volumes traded online.

The content-rich and research oriented portal has stood out among its contemporaries because of

its steadfast dedication to offering customers best-of-breed technology and superior market

information. The objective has been to let customers makeinformed decisions and to simplify the

process of investing in stocks.

On April 17, 2002 Indiabulls launched SpeedTrade, a net-based executable application that

emulates the broker terminals along with host of other information relevant to the Day Traders.

This was for the first time that a net-based trading station of this caliber was offered to the

traders. In the last six months SpeedTrade has become a de factostandard for the Day Trading

community over the net.

Indiabulls has always believed in investing in technology to build its business. The company has

used some of the best-known names in the IT industry, like Sun Microsystems, Oracle,

Microsoft, Cambridge Technologies, Vignette, VeriSign Financial Technologies India LTD,

Spider Software Pvt. Ltd. to build its trading engine and content.


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OBJECTIVE

PRIMARY OBJECTIVE

Study of competitive market and to acquire new customer on the basis of need gap analysis.

SECONDARY OBJECTIVE

To analyze, interpret and study the competitiveness of various brokerage houses.

To know the attitude & preference of the general investors in the Indian capital market.

To analyze the various pros and cons in the capital market.

Making aware them to providing the good service by Indiabulls.


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LITERATURE REVIEW

In few years Share Market has emerged as a tool for ensuring ones financial well being.As

information and awareness is rising more and more people are enjoying the benefits of

investing in share market. The main reason the number of retail share market investors

remains small is that nine in ten people with incomes in India do not know that share

market exist. But once people are aware of Share market investment opportunities, the

number who decide to invest in share market increases .The analysis and advice presented

in this Project Report is based on market research on the saving and investment practices of

the investors and preferences of the investors for investment in Share market. This Report

will help to know about the investors Preferences in Share market means Are they prefer

any particular Asset Management Company (AMC), which type of Product they prefer,

which Option (Growth or Dividend) they prefer or Which Investment Strategy they follow.

This Project as a whole can be divided into two parts.

The first part gives an insight about Share market and its various aspects, the Company

Profile, Objectives of the study, Research Methodology. One can have a brief knowledge

about Share market and its basics through the Project.

The second part of the Project consists of data and its analysis collected through survey

done on 50 people. For the collection of Primary data I made a questionnaire and surveyed

of 50 people. I also taken interview of many People those who were coming at the

Indiabulls securities where I done my Project. I visited other AMCs in Gurgaon to getsome


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knowledge related to my topic.This Project covers the topic INVESTMENT IN

CAPITAL MARKET.


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WHAT ARE STOCKS


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WHAT ARE STOCKS

1.1 The Definition of a Stock:

Plain and simple, stock is a share in the ownership of a company. Stock represents a claim on the

company's assets and earnings. As you acquire more stock, your ownership stake in the company

becomes greater. Whether you say shares, equity, or stock, it all means the same thing.

1.2 Being an Owner:

Holding a company's stock means that you are one of the many owners (shareholders) of a

company, and, as such, you have a claim (usually very small) to everything the company owns.

Yes, this means that technically you own every piece of furniture, every trademark, and every

contract of the company. As an owner, you are entitled to your share of the company's earnings

as well as any voting rights attached to the stock.

A stock is represented by a stock certificate. This is a fancy piece of paper that is proof of your

ownership. In today's computer age, you won't actually get to see this document because your

brokerage keeps these records electronically, which is also known as holding shares in Demit

form. This is done to make the shares easier to trade. In the past when a person wanted to sell his

or her shares, that person physically took the certificates down to the brokerage. Now, trading

with a click of the mouse or a phone call makes life easier for everybody.

Being a shareholder of a public company does not mean you have a say in the day-to-day

running of the business. Instead, one vote per share to elect the board of directors at annual


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meetings is the extent to which you have a say in the company. For instance, being a Microsoft

shareholder doesn't mean you can call up Bill Gates and tell him how you think the company

should be run.

The management of the company is supposed to increase the value of the firm for shareholders.

If this doesn't happen, the shareholders can vote to have the management removed--well, this is

the theory anyway. In reality, individual investors don't own enough shares to have a material

influence on the company. It's really the big boys like large institutional investors and billionaire

entrepreneurs who make the decisions.

It isnt too big a deal that the shareholders are not the ones managing the company. After all, the

idea is that you don't want to have to work to make money, right? The importance of being a

shareholder is that you are entitled to a portion of the companys profits and have a claim on

assets. Profits are sometimes paid out in the form of dividends.

The more shares you own, the larger the portion of the profits you get. Your claim on assets is

only relevant if a company goes bankrupt. In case of liquidation, you'll receive what's left after

all the creditors have been paid. This last point is worth repeating: the importance of stock

ownership is your claim on assets and earnings.

Another extremely important feature of stock is its limited liability, which means that, as an

owner of a stock, you are not personally liable if the company is not able to pay its debts. Other

companies such as partnerships are set up so that if the partnership goes bankrupt the creditors


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can come after the partners (shareholders) personally and sell off their house, car, furniture, etc.

Owning stock means that, no matter what, the maximum value you can lose is the value of your

investment. Even if a company of which you are a shareholder goes bankrupt, you can never lose

your personal assets.

1.3 Debt vs. Equity:

Why does a company issue stock? 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 fit 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 some daybed worth more. The first sale of a stock, which is issued

by the private company itself, is called the initial public offering (IPO).

Shareholders earn a lot if a company is successful, but they also stand to lose their 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.


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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. As an owner your claim on assets is lesser than that of creditors. This means that if

a company goes bankrupt and liquidates, you, as a shareholder, don't get any money until the

banks and bondholders have been paid out.Shareholders earn a lot if a company is successful, but

they also stand to lose their entire investment if the company isn't successful.

1.4 Risk:

Itmust be emphasized that there are no guarantees when it comes to individual stocks. Some

companies pay out dividends, but many others do not and there is no obligation to pay out

dividends even for those firms that have traditionally given them. Without dividends an can

make money on a stock only through its appreciation in the open market. On the downside, any

stock may go bankrupt, in which case your investment is worth nothing. Although risk might

sound all negative, there is also a bright side. Taking-on greater risk demands a greater return on

your investment. This is the reason why stocks have historically outperformed other investments

such as bonds or savings accounts.


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INVESTING IN SHARES

While investing is relatively painless, its rewards are plentiful. To understand why you need to

invest, you need to realize that you lose when you just save and do not invest. That is because the

value of the rupee decreases every year due to inflation. For example, if you ran a household

within a budget of Rs100,000 in 2010, to run the same household today (assuming the same set

of expenses) you would probably need Rs125,000--that's Rs25,000 added to your budget because

of inflation! Thus you need to generate an additional Rs25,000 and that can be possible only by

INVESTING your hard-earned money.

2.1 VARIOUS INVESTMENT OPTIONS:

One can invest in various financial instruments like equities (popularly referred to as shares),

bank fixed deposits, National Savings Certificates etc as well as in gold, real estate etc. Out of

these shares give best return on investment.

KEY BENEFITS OF INVESTING IN SHARES

Shares or equities are one of the best investment option for individual investors due to the

following benefits:

Possibilities of higher return:Shares have outperformed all the other investment instruments and given the maximum returns

in the long run while the other instruments have barely managed to generate returns at a rate

higher than the inflation rate (6.10%) on an average shares have given returns of about 17% in a

year.


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Dividend income:Investments in shares are attractive as much for their appreciation in the share prices as for the

dividends their companies pay out.

Tax advantages:Shares appear as the best investment option if you also consider the unbeatable tab benefits that

they offer. First, the dividend income is tax-free in the hands of investors. Second, you are

required to pay only a 10% short term capital gains tax on the profits made from investments in

shares, if you book your profits within a year of making the purchase. Third, you don't need to

pay any long-term capital gains tax on the profits if you sell the shares after holding them for a

period of one year. The capital gains tax rate is much higher for other investment instruments: a

30% short-term capital gains tax (assuming that you fall in the 30% tax bracket) and a 10% long-

term capital gains tax.

Easy liquidity:Shares can also be made liquid anytime from anywhere (on sharekhan.com you can sell a share

at the click of a mouse from anywhere in the world) and the investments can be realized in just

two working days.

Considering the high returns, the tax advantages and the highly liquid nature, shares are the best

investment option to create wealth.


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WHAT CAUSES PRICES TO CHANGE?

Stock prices change every day by market forces. By this we mean that share 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.

Understanding supply and demand is easy. What is difficult to comprehend is what makes people

like a particular stock and dislike another stock. This comes down to figuring out what news is

positive for a company and what news is negative. There are many answers to this problem and

just about any investor you ask has their own ideas and strategies.

That being said, the principal theory is that the price movement of a stock indicates what

investors feel a company is worth. Don't equate a company's value with the stock price. The

value of a company is its market capitalization, which is the stock price multiplied by the number

of shares outstanding. For example, a company that trades at Rs.100 per share and has 1,000,000

shares outstanding has a lesser value than a company that trades at Rs.50 but has 5,000,000

shares outstanding (Rs.100 x 1,000,000 = Rs.100,000,000 while Rs.50 x 5,000,000 =

Rs.250,000,000). To further complicate things, the price of a stock doesn't only reflect a

company's current value--it also reflects the growth that investors expect in the future.

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, they aren't going to stay in

business. Public companies are required to report their earnings four times a year (once each

quarter). The reason behind this is that analysts base their future value of a company on their


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earnings projection. If a company's results surprise (are better than expected), the price jumps up.

If a company's results disappoint (are worse than expected), then the price will fall.

So, why do stock prices change? The best answer is that nobody really knows for sure. Some

believe that it isn't possible to predict how stocks will change in price 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 as a certainty is that stocks are volatile and can change in price

extremely rapidly.

HERE ARE THE IMPORTANT THINGS TO GRASP ABOUT THIS

SUBJECT:

1. At the most fundamental level, supply and demand in the market determine stock price.

2. Price times the number of shares outstanding (market capitalization) is the value of a

company. Comparing just the share price of two companies is meaningless.

3. Theoretically earnings are what affect investors' valuation of a company, but there are other

indicators that investors use to predict stock price. Remember, it is investors' sentiments,

attitudes, and expectations that ultimately affect stock prices.

4. There are many theories that try to explain the way stock prices move the way they do.

Unfortunately, there is no one theory that can explain everything.


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THE BULLS, THE BEARS, AND THE FARM :

On a stock market, the bulls and bears are in a constant struggle. If you haven't heard of these

terms already, you undoubtedly will as you begin to invest.

THE BULLS:

A bull market is when everything in the economy is great, people are finding jobs, GDP is

growing, and stocks are rising. Things are just plain rosy! Picking stocks during a bull market is

easier because everything is going up. Bull markets cannot last forever though, and sometimes

they can lead to dangerous situations if stocks become overvalued. If a person is optimistic,

believing that stocks will go up, he or she is called a "bull" and said to have a "bullish outlook."

THE BEARS:

A bear market is when the economy is bad, recession is looming, and stock prices are falling.

Bear markets make it tough for investors to pick profitable stocks. One solution to this is to make

money when stocks are falling using a technique called short selling. Another strategy is to wait

on the sidelines until you feel that the bear market is nearing its end, only starting to buy in

anticipation of a bull market. If a person is pessimistic, believing that stocks are going to drop, he

or she is called a "bear" and said to have a "bearish outlook."


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THE OTHER ANIMALS ON THE FARM :

Chickens and Pigs Chickens are afraid to lose anything. Their fear overrides their need to

make profits and so they turn only to money-market securities or get out of the markets all

together. While it's true that you should never invest into something over which you lose sleep,

you are also guaranteed never to see any return if you avoid the market completely and never

take any risk.

Pigs are high-risk investors looking for the one big score in a short period of time. Pigs

buy on hot tips and invest in companies without doing their due diligence. They get impatient,

greedy, and emotional about their investments, and they are drawn to high-risk securities without

putting in the proper time or money to learn about these investment vehicles. Professional traders

love the pigs, as it's often from their losses that the bulls and bears reap their profits.

WHAT TYPE OF INVESTOR WILL YOU BE?

There are plenty of different investment styles and strategies out there. Even though the bulls and

bears are constantly at odds, they both can make money with the changing cycles in the market.

Even the chickens see some returns, though not a lot. The one loser in this picture is the pig.

Make sure you don't get into the market before you are ready. Be conservative and never invest

in anything you do not understand. Before you jump in without the right knowledge, think about

this old stock market saying:

Bulls make money, bears make money, but pigs just get slaughtered!


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BUYING AND SELLING

OF SHARES


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BUYING AND SELLING OF SHARES

4.1 DIFFERENT WAYS OF INVESTING IN SHARES:

There are basically two ways of investing in shares:

a) Purchase shares from the primary market (i.e. IPOs):The first time that a companys shares are issued to the public, it is By a process called the

initial public offering (IPO). In an IPO the company offloads a certain percentage of its total

shares to the public at a certain price. Most IPOs these days do not have a fixed offer price.

Instead they follow a method called the book buildingprocess, where the offerprice is placed in a

band or a rangewith the highest and the lowestvalue.

The public can bid for theshares at any price in theband specified. Once the bidscome in, the

company evaluates all the bids and decides on an offer price in that range. After the offer price is

fixed, the company eitherallots its shares to the people who had applied for its shares or returns

them their money.

b)Trade in the secondary market, i.e. stock exchanges:Once the offer price is fixed and the shares are issued to the people, stock exchanges

facilitate the trading of shares for the general public. Once a stock is listed on an exchange,

people can start trading in its shares. In a stock exchange the existing shareholders sell their

shares to anyone who is willing to buy them at a price agreeable to both parties. Individuals

cannot buy or sell shares in a stock exchange directly; they have to execute their transactions

through authorized members of the stock exchange who are also called stock brokers.


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FUNCTIONS OF STOCK MARKET

In order to understand how the stock market operates, you should have knowledge about

the role of following institutions / organist ions:

a) Stock exchanges,b) Brokers,c) Registrars,d) Depositories and their participants, ande)

Securities and Exchange Board of India (Sebi)

a) Stock exchanges:

A stock exchange is the marketplace where companies are listed and where the trading happens.

There are different stock exchanges in the country, the pre-dominant being the National Stock

Exchange (NSE) and the Bombay Stock Exchange (BSE).

b) Brokers:

A stock exchange functions through its members called brokers. If you want to buy or

sell a share, you contact a broker. Each stock exchange has a limited set of brokers and these

brokers contact each other using trading terminals to find out who is interested in the share you

want to buy or sell. Brokers have terminals linked to the BSE or the NSE and they directly

purchase or sell shares using these terminals. The entire transaction happens electronically or

through websites like www.indiabullssecurities.com.

Brokers may also authorize a sub-broker to conduct the transactions on behalf of them. Since

brokers are providing a service they charge you for the same. Normally this payment is not a flat

rate, but a commission of the transaction value. Brokerages normally range from 0.5% to 1% for

delivery-based transactions and 0.05% for intra-day transactions.


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c) Registrars:

The registrar for each company maintains records of all the shareowners of the company

and the number of shares that they own. Whenever an ownership changes takes place, the

registrar updates the shareholders database.

d) Depositories and their participants:

Depositories are organizations that hold shares of investors, on request, in electronic form

through a registered Depository Participant.

It can be compared with a bank as it holds securities in an account, transfers securities between

accounts on the instruction of the account holder, facilitates the transfer of ownership without the

account holder needing to handle securities and makes the safekeeping of shares easy.

The agent through which a depositories interfaces with the investor is known as a depository

participant.

You can create a demat account with a DP, who will keep an account of all the shares you own.

This is much like the banking system, where you just create an account and have a passbookwhich updates you on the money you own and the transactions you have made. In your demat

account you own shares in an electronic format and your account gets updated as you buy and

sell shares.

e) SEBI:

The regulatory body that governs all stock market transactions is the Securities and

Exchange Board of India. SEBI forms rule and regulations that govern transactions in securities

market and that the stock exchanges and other intermediaries follow all such rules and

regulations set by it and/or the government. SEBI also looks into investor complaints against

companies. It is quasi-judicial and can try cases and pass judgments against any market

participants. It also looks into mergers and acquisitions of companies.


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4.5 DO I KNOW WITH WHOM I AM TRANSACTING WITH?

When you transact in a share, you are basically placing an order through your broker.

Transactions happen through exchange systems through anonymous order matching mechanism.

Therefore the details of counter party to your transactions are not known to you. You get unique

transaction numbers as allotted by the Exchange from your broker.

Transactions are settled on a daily rolling settlement basis. All the transactions carried through

the day are summarized by the Exchange at the end of the day. You have to settle your

transactions with your Broker and the Broker in turn settles transactions with the stock exchange.

This process of settlement is called a settlement cycle and the time taken for this is currently T+2

days. i.e., the settlement will occur two working days after you make the trade. You need to payfor the purchases/losses before the settlement deadline and you will receive securities after the

settlement deadline. Similarly you need to deliver securities sold before the deadline and you

receive payment for sale/profit after the settlement deadline.

If you have an online trading account and a demat account with Indiabulls then settlement

process for securities happens as a paperlesstransaction.


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HOW CAN ONE KNOW CURRENT PRICE OF ANY OTHER STOCK ?

Whenever you are buying or selling a share, you will encounter certain terms related to

share prices. These terms deal with the individual price movements of a single share as well as

the price movements of all the shares. For every share, typically there are four price parameters.

a) Open:This is the price at which the share opened on a particular day, that is the price at which

the first purchase of the share was made during that day.

b) High:This is the highest price that a share went up to on a given day, or the highest price the

investors paid for that share.

c) Low:This refers to the lowest price that a share fell to during a day, or the lowest price an investor

paid for that share.

d) Close:This is the price at which the share closed on that day or the price for the last trade of that day.

At any given point of time, the share price will fluctuate between the highs and the lows,

sometimes reaching new highs, sometimes falling to new lows.

When trading in shares, you need to mention the price point at which you want to buy or sell. To

specify the price point, it helps if you know the statistics or the trends of your stock, and the

stock's opening and closing prices of the previous days.


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You can also trade in shares without specifying the pricethis is known as a market order. In

this case the trade happens at the market price at that point of time.

4.3 TRACKING THE STOCK MARKETThe BSE Sensex (Bombay Stock Exchange Sensitive Index) measures the movement of 30 most

actively traded shares on the BSE. These 30 companies represent a cross-section of sectors of the

economy.

Similar to the BSE Sensex is the Nifty or the S&P CNX Nifty, which measures the movement of

the NSE. This index tracks 50 stocks, which represent about 60% of the market capitalization of

the NSE.

The upward or downward movement of the Sensex or Nifty is a typical indication of whether

the share prices are going up or down in general.

If the Sensex goes up on a particular day, it doesn't mean that the share prices of all companies

would have gone up on that day. Tracking the movement of stock indices over a longer period is

an important part of intelligent investing.


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4.4 EARNING FROM INVESTMENTSShares can give you returns in two forms:

a) Appreciation in share prices

You buy shares with the belief that their price will increase and that when this happens

you will be able to sell off your shares and earn profit. For example, if you bought a share for

Rs100 three years ago and it is Rs500 today, then you have earned Rs400 in three years.

B)Dividend

When a company makes profits, it can choose to share part of its profits with its

shareholders by paying out dividend. This dividend is paid as a percentage of the face value of

the share. For example, a company may declare a dividend of 25%. Then if the face value of its

share is Rs10 you will get Rs2.50 for every share you own of that company, irrespective of the

market price.

In itself this might not be much, but over a longer period of time or if you have a lot of shares,

you could earn quite a bit from the dividend itself. The best thing about dividends is that they are

tax free in the hands of investors. Dividend yield stocks are known to give returns higher than

fixed deposits.

[Dividend yield = (dividend per share / market price of the share) x 100].

Indiabulls informs its customers of good dividend yield stocks from time to time.


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4.5 EXPENSES DURING A TRANSACTIONEvery share transaction attracts some tax or the other. Some of the main expenses are as

follows:

a) Capital gains tax:

If you purchase a share and sell it at a price higher than the purchase price and if this sale

is within a year of the purchase, then approximately 10% capital gains tax is levied on the profit

that you make. For example, if you bought a share for Rs100 on January 1, 2013 and sold it for

Rs150 on July 1, 2013, then you have to pay a tax of 10% on the Rs50 profit that you make. If

you sell after a year of purchase, there is no tax on the long-term gains.

b) Securities transaction tax

Securities transaction tax (STT) is levied by the government on every transaction you do

on a stock exchange. You don't have to pay this separately; it's collected by your broker. As per

the Union Budget 2013 the STT for cash segment transactions will be 0.10% (sell as well as buy)

on delivery-based transactions and 0.025% on intra-day sells transactions.

c) BrokerageBrokers get a commission on every trade that they do for you. This commission varies

from broker to broker; at sharekhan.com the brokerage is 0.5% for delivery-based transactions

and 0.05% for intraday transactions. On the brokerage amount you are required to pay a service

tax to the government (to be collected by the broker). There could also be separate transaction


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charges in the nature of Exchange turnover based charges, stamp duty on transactions etc. The

brokerage varies depending on the service that the broker provides you. Some brokers, such as

Sharekhan, offer its clients regular updates on companies, multiple means to transact and

customer service support.

d) Depository fees

Since most of the shares exist in a dematerialized form, every time you buy or sell shares

the transactions are being noted by your DP. The DPs normally levy a charge which is an annual

charge and also .a charge on each transaction.


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5.2 COMPONENTS OF FUNDAMENTAL RESEARCH:

A fundamental researcher looks at the performance of a company over a period of time as

well as its future growth prospects. He might compare this data with that of the other companies

in the same sector and measure the same against a stock market index. Most of the data

necessary for doing fundamental research comes from the quarterly and annual reports of

companies as well as from the analysis of their stock prices. A fundamental researcher tidies the

following: (1) annual reports and (2) ratios like EPS, PER etc.

5.3 ANNUAL REPORT:

The annual report of a company provides a wealth of information about the company. In

an annual report investors must look for the Profit & Loss (P&L) statement and the Balance

Sheet.

The P&L statement:The P&L statement gives you the figures relating to the company's income, expenditure,

earnings before interest, depreciation, tax and amortization (EBIDTA), and net profit. Income,

Expenditure and Net profit are the main heads of the P&L statement.

A) Income:The total earnings of the company from varied sources. This can include sales, income

from dividends, interest received, profit from asset sales, stock variation (which refers to the

closing stock in inventory) and so on. However attention should be paid to the Sales figure,

which pertains to the core business of the company.


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example, if a company has profits of Rs100 million and has issued 10 million shares, its EPS is

10. The EPS is used to gauge a company's profitability per unit of shareholder ownership.

You can use the ratio to compare two companies in the same sector. For example, companies A

and B both earn Rs100, but company A has ten shares outstanding, while company B has 50

shares outstanding. It means that company A has an EPS of 10 and company B has an EPS of 2.

As a general rule, a higher EPS drives up the stock price of a company.

However the EPS should not be viewed in isolation and should also be analyzed along with the

industry average as well as the EPS of the other companies in the same sector.

ii) PER:While the EPS looks at the profitability of a company, the PER (i.e the price/earnings

ratio) is the market price equivalent. The PER refers to the market price divided by the EPS.

Thus in the above example if the EPS is 10 and the market price is 50, then the PER is 50/10 = 5.

Meaning, the share of the company is trading at a multiple of 5. This ratio is typically compared

with that of the other companies in the same sector and you get to know whether the company is

on the fast track or is a slow runner. While comparing the PERs it is better to stick to the

companies in a particular industry and not compare across industries.


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MINIMISE RISKS AND

MAXIMIZE RETURNS


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6.5 BLUE-CHIPS ARE SAFE BETS:

Blue-chip companies are there because they have done well in the past and have a high

market capitalization. It is a likely guess that they will maintain their track record and give you

higher returns even in future. Therefore invest in companies that have a good track record.

6.6 SLOW AND STEADY STREAM OF INVESTMENTS:

Set aside a certain portion of your earnings every month and invest that sum in shares

irrespective of the market conditions. This way, over a period of time you can amass a

substantial number of shares of the stocks in your portfolio.

6.7 THINK PORTFOLIO:

Don't put all your earnings in a single stock. Try to have a diverse portfolio of stocks.

This way even if one stock doesn't do well, you are still well protected. Also invest across

sectors, since any problem in one sector would affect all stocks in the sector. As a thumb rule, if

you have investments of up to Rs50,000 invest in two to three stocks. For about Rs150,000

invest in three to five stocks, for around Rs500,000 have five to seven stocks, and around ten

stocks for higher amounts.

6.8 DONT INVEST ALL YOUR SAVINGS:

Always maintain a core set of reserves. You should never touch these reserves for

investing, so that even in the worst case you still have some money. Typically these reserves

should be your salary of about six months.


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6.9 BE REALISTIC:

Analyze the reason why you are investing in shares, i.e. why you require the money. For

a better life style? For your child's future education? For retirement planning? Once you have

answered that, ask yourself how much appreciation do you need to get that amount? Work

towards this amount and you won't be disappointed.

6.10 BE LEVEL-HEADED:

Invest wisely, don't get swayed by rumours and allow Indiabulls to be your guide at all

times. Investment success won't happen overnight, so avoid overreacting to short term market

swings.


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ONLINE TRADING


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ONLINETRADING

7.1 PROCEDURE:

Just like offline trading, online trading also involves three main intermediaries and one

ancillary institution.

A broker,

An exchange,

Your bankers, and

Your depository participant.

In this form of trading, your broker provides you an Internet broking account which

allows you to buy and sell shares at your convenience. To put it simply, the broker is providing

an interface on the computer that acts like a broker.

So you no longer have to call your broker to place a trade. Just go online to your account, select

the shares you want to buy or sell and execute the trade! It's as simple as that.

During this trade, your bankers provide the feature of transferring money from or to your bank

account. The brokers then collect this trade information in real time using software at their end

and forward it to the exchange.

The exchange executes the trade and informs the broker. The broker in turn informs you and

also ensures that your depository account gets updated; and in case of selling shares it places the


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value of shares you sold in your account. You can transfer this amount back to your bank or use

it for buying shares.

7.2 STEPS FOR TRADING ONLINE:

There are three basic steps in trading online:

STEP I: Go to your broker and open an online account. During this stage you also need to take

a depository account.

STEP II: Ensure that you have a bank account with a bank that facilitates online transactions

(i.e. allows for net banking). Most leading banks such as HDFC Bank and Citibank allow this.

STEP III: Once you open an account, you get a username and password for checking your

account details as well as another password for carrying out your actual transactions. This

ensures a double layer of security. Using these details you go to your broker's website, log on to

your account and start trading.

7.3 BENEFITS OF TRADING ONLINE?

Online trading is quite convenient for the following reasons:

Freedom from paperworkYour online trading account is integrated with your bank, your depository and digital

contracts. It thus eliminates all paperwork.


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Instant credit and transferOnline trading gives you instant credit money transfer to and from your bank account,

enabling you to trade surplus credit without delay.

Trade from anywhereA major benefit of online trading is the facility of trading from anywhere. Even when you

are in a new place, just connect to the Internet, log on to your account on

indiabullssecurities.com and start trading.

Real-time portfolio trackingOnline trading provides auto update of trades executed by you and gives you real-time

information on your investments and the current value of your portfolio. Indiabulls provides

portfolio tracking service to its clients absolutely free of cost.

After-hour ordersYou can place orders even when the market is closed. The order gets queued up and gets

executed the next time the markets open.

Get live quotesOnline trading provides you live, minute-by-minute streaming quotes and using the

software you can create appropriate filters to watch the movement of the stocks that you are

interested in.


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Host of features a click awayPlace limit orders, check your portfolio and calculate your earnings, check your

depository account, transfer money from your bank to the broking account and vice versa, at

just a click of your mouse.


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Five Golden Rules

For Investing In Share


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FIVE GOLDEN RULES FORINVESTING IN SHARES

RULE 1: THINK PORTFOLIO:

While investing in shares one should not just invest in just one single stock. Always look at buying more than one company and build a portfolio.

RULE 2: DIVERSIFY YOUR PORTFOLIO:

All stocks in your portfolio should not belong to just one or two sectors. The portfolio approach calls for diversification amongst business like software, pharm,

steel, cement, etc.

Why is this important?Lets assume that you have 10 stocks in your portfolio and all of them belong to the steel

industry. It is not a balanced portfolio because:

The factors that affect the steel industry will take their toll on each of steel companies. Hence the portfolio is as risky as one with just one steel company. It may fail to give balanced returns because there is no diversification across various

businesses.


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RULE 3: DONT SPREAD YOUR NET TOO WIDE:

Ideally a portfolio should not have more than 15 or 20 stocks.

As the number of stock keeps increasing, the portfolio becomes unmanageable.

Your total returns may start reducing.

RULE 4: UNDERSTAND YOUR RISK PROFILE:

Portfolio creation is all about maximizing returns, given a risk profile and a time horizon. Your risk profile is a function of: Your age Ability to withstand losses Investment horizon (Time) Existing cash flows (income - expense)

Experience and expectations from the market

RULE 5: SELECT STOCKS TO SUIT YOUR RISK - REWARD

EXPECTATIONS:

Invest in stocks based on your risk profile Never get into a herd mentality


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SERVICES


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SERVICES

9.1 PORTFOLIO MANAGEMENT SYSTEM:

Can you analyze the prices of 1,500 shares every morning? Can you afford to gamble only on the

recommendations from your friends and the information overload from magazines and financial

dailies?

And, of course, more importantly, if you happen to be a High Net worth Individual, do you have

the time to judge which advice is reliable, authentic and has the least chance of failure?

With the Indiabulls Team Managing Your Portfolio, you can be assured that your investments

are in safe hands! We follow a multi-disciplined approach incorporating quantitative analysis,

fundamental analysis and technical analysis. This multi-pronged approach enables us to provide

risk-controlled returns for you.

Right from choosing the combination of stocks most suitable for you based on your risk appetite

to monitoring their movements and discussing them with you at special events.

9.2 COMMODITIES TRADING:

The process of economic liberalization in India began in 1991. As part of this process,

several capital market reforms were carried out by the capital market regulator Securities and

Exchange Board of India. One such measure was to allow trading in equities-based derivatives

on stock exchanges in 2000. This step proved to be a shot in the arm of the capital market and

volumes soared within three years. The success of the capital market reforms motivated the


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government and the Forward Market Commission (the commodities market regulator) to kick off

similar reforms in the commodities market. Thus almost all the commodities were allowed to be

traded in the futures market from April 2003. To make trading in commodity futures more

transparent and successful, multi-commodity exchanges at national level were also conceived

and these next generation exchanges were allowed to start futures trading in commodities on-

line.

Commodities exchanges have seen a surge in commodity futures volumes in the last few months.

This rise in volumes has been led by bullion (gold and silver) trading. Today a whole lot of

commodities are available for trading in futures and the list is getting bigger by the day. No

wonder then that the commodity futures market is being viewed as a significant business

segment by manybusinessmen, investors, institutions, brokers, banks.

Of course there are still millions of Indians who are not aware that commodities other than gold

and silver can also be traded in on commodity exchanges. Fewer still know that be traded online.

Hence to educate Indian investors in the benefits of trading in commodities Indiabulls has

decided to bring out a compilation of questions on the subject along with their answers.

Demystifying Commodities seeks to cover every aspect of commodity trading and has been

written in a language that is simple and lucid, a characteristic of Indiabulls.

I am certain that Demystifying Commodities will go a long way in generating awareness about

commodity trading among Indian investors. The various money-making trading strategies for the

commodities market discussed in Demystifying Commodities will also be of immense help to

those billion investors who are already trading in commodities.


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How to Open an Commodity Account?

Need Rs 500 cheque in the name of "Indiabulls Commodity Ltd"to open an account

Latest bank act statement Xerox Identity proof Residential proof Trading in commodity exchange require 5-10 percentage margin money.

How do I trade in commodities?

You can place your orders through our dealers across all our branch/franchisee Toll free number

39708090 during the market hours between 10 am to 11.30 pm in summer & 10 am to 11.55 pm

in winter. If you require terminal for mcx/ncdex or both need Rs. 1 lac as margin money, there is

terminal fees asking by exchange i.e. Rs. 1000 each exchange/month.

9.3 SHARE SHOPS:

Get everything you need at aIndiabulls outlet all you have to do is walk into any of our 588 share

shops across 213 cities in India to get a host of trading related services - our friendly customer

service account related queries you may have.


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AIndiabulls outlet offers the following services:

Online BSE and NSE executions (through BOLT and NEAT terminals)

Free access to investment advice from Indiabulls research team

Indiabulls Value Line (a fortnightly publication with reviews of recommendations,stocks to watch out for etc

Daily research reports and market review (High Noon, Eagle Eye) Pre-market Report (Morning Cuppa) Daily trading calls based on technical analysis Cool trading products (Daring Derivatives, Trading Ring and Market Strategy) Personalized advice Live market information Depository services: Demit and Remit transactions Derivatives trading (Futures and Options)

Internet-based online trading: Speed Trade, SpeedTradePlus


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INDIABULLSOnline

TradingInterfaces


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INDIABULLS ONLINE TRADING INTERFACES

The customer can choose the online trading interface that meets his requirement based on his

trading habits and preferences.

10.1 CLASSIC account:

Investing Online is so much easier! This account enables you to buy and sell shares through our

website.

FEATURES OF CLASSIC ACCOUNT:

Facility to integrate choice of 7 Banks / DP / Trading Account Instant credit for shares sold from DP Automatic pick-up of shares from linked DP for Pay-in Automatic deposit of shares into linked DP after pay-out Times leverage on Margin Trades Margin Trading available for entire market session Slab wise brokerage structure for delivery and margin trades, shortly Free Calls for order placement on Toll-Free Trusted, professional advice of Tele-brokers Facility to enter After Market orders online & via phone Daily Research newsletter (Investor Eye) via e-mail Access to new IPO without any paperwork Advanced portfolio monitoring Tools


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Integrated DP account with trading account Choice of linking 4 banks to trading a/c for online payments Cash and Derivatives trading in a single account E-mail confirmations for all transactions Choice of electronic / physical contracts

SYSTEM REQUIREMENTS:

You will need access to a computer which has at least the following configuration:

Pentium 3 PC Minimum 128 MB RAM Windows 2000/XP Internet connection Internet Explorer 6.0

10.2 SPEEDTRADE:

The speedtrade is meant for customers who trade in Equities. The ideal tool for active traders and

jobbers who transact frequently during the day's trading session, Speedtrade enables you to

capitalize on intra-day price movements.

Speedtrade is an Internet-based executable application that provides everything a trader needs on

ONE screen.


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FEATURES OF SPEED TRADE:

It contains all the features of classic account. In addition to all those features it contains the

following features:

Real-time streaming quotes using 2 Market Watches Trade Execution in 2-3 seconds Instant order / trade confirmations in the same window Hot keys similar to a Brokers Terminal Multiple Tic-by-Tic Intra-day charts with multiple indicators Availability of 2 ISP & 6 Servers ensuring maximum uptime Customized alerts based on Multiple Parameters Cancel All / Square Off All Facility Window for Top Gainers, Top Losers, most active updated Live.

SYSTEM REQUIREMENTS:

Pentium 3 PC Minimum 128 MB RAM Windows 2000/XP Internet connection Dial-up Modem/ Cable Modem JAVA enabled in IE Internet Explorer 6.0


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10.3 DIAL-N-TRADEToll Free:Trade in Equity by using your phone! Free with your IndiabullsClassic Account,the Dial-

n-Trade service enables you to place orders for buying and selling shares through your

telephone.

All you have to do is dial any one of our two dedicated numbers (1-800-11-44-88), enter your

TPIN number (which is provided at the time of opening your account) and on authentication

you'll be directed to a telebroker who will buy and sell shares for you.

The DNT is a value added services meant for all customers who want to transact but are not

online

FEATURES OF DIAL-N-TRADE:

Dedicated Toll-Free number for Order placements Automatic fund transfer with phone banking* Simple and secure IVR based system for authentication No wait time. On entry of Phone Id & TPIN, the call is transferred Trusted, professional advice of Tel-brokers who offer undilutedIndiabulls Research Inputs

After-hours order placement facility ** Transfer of money using phone banking is available with bank Between 9 a.m to 9:55 a.m and 3:30 p.m to 6 p.m
http://d/D:educationTAJSHAREKHANSharekhan.comsskisharekhan.comClassicAccountdefault.htmhttp://d/D:educationTAJSHAREKHANSharekhan.comsskisharekhan.comClassicAccountdefault.htm


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10.4 DOCUMENTS REQUIRED:

3 Passport size Photographs

1 Cheque of Rs.750 in Favour of Indiabulls commodities limited

Photo ID Proof Residence Proof

Passport Pan Card Driving Licence Voter's ID MAPIN UIN Card

Passport (valid) Voter's ID Driving License (valid) Bank Statement Telephone Bill Electricity Bill Ration Card Flat Maintenance Bill Insurance Policy Leave-License/Purchase Agreement


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RESEARCH METHODOLOGY

RESEARCH DESIGN

A research design is the specification of methods and procedures for acquiring the needed data to

solve the problem.

TYPES OF RESEARCH DESIGN

The arrangement of conditions suitable for collection and analysis of data varies

depending upon the type of research study.

1.Exploratory research design.

2.Descriptive research design.

3.Conclusive research design.


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DESCRIPTIVE RESEARCH:

Descriptive study is a fact- finding investigation with adequate interpretation. It is the simplest

type of research. It is more specific than an explanatory study, as it has focus on particular aspect

of the problem studied. It is designed to get her descriptive information and provide information

for formulating more sophisticated studies. Data are collected by using one or more appropriate

method, observation, interviewing and mail questionnaire.

TYPE OF DATA USED:-

There are basically two types of Data

Primary Data Secondary Data

PRIMARY DATA

Primary Data is first hand information that the researcher collects. It helps in collecting useful

and most accurate information that is needed for the researcher to do his research.

SOURCES OF PRIMARY DATA:-

Questionnaire Interview Schedule

SECONDARY DATA

Secondary data is what the researcher collects from different sources. It also help researcher to

get elaborate information to do his research.


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SOURCES OF SECONDARY DATA:-

Internet Journals

TARGET GROUP/ POPULATION

As this research is based on Relationship Marketing my Target group is my Clients who are

using the Services of Indiabulls Securities in Dealing with Capital Market.

Area of Study:- GURGOAN


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DATA INTERPRETATION

&ANALYSIS


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In which professions are you engaged in?

RESPONDENTS PERCENTAGE

Business 25 50%

Service 10 20%

Professional 10 20%

Entrepreneur 5 10%

TOTAL 50

0

5

10

15

20

25

30

Business Service Professional Enterprenure


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Interpretation:

50% of the respondents are Business Man 20% of the respondents are Service Man 20% of the respondents are Professionals 10% of the respondents are Entrepreneur

Inferences:

From the above survey most of the respondents are found to be business man by profession.


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Do you trade in Stock Market?RESPONDENTS PERCENTAGE

YES 39 78%

NO 5 10%

EARLEAR, BUT NOW

STOPPED

6 12%

Total 50 100%

Interpretations:

78% of the respondents trade in stock 10% of the respondents do not trade in stock 12% of the respondents trade earlier

Inferences:

39

5 6

0

5

10

15

20

25

30

35

40

Yes No Earlier But Now

Stopped


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From the above survey most of the respondents trade in stock market.

How much is your income or your Credibility?RESPONDENTS PERCENTAGE

Between 1- 2 lac 10 20 %

Between 2-3 lac 20 40 %

Between 3-4 lac 15 30 %

Above 4 lac 5 10 %

TOTAL 50

20%

40%

30%

10%

1 - 2 lac

2- 3 lac

3 - 4 lac

Above 4 lac


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Interpretation:

40% of the respondents are between 2- 3 lac 30% of the respondents are between 3-4 lacs 20% of the respondents are between 1-2 lacs 10% of the respondents are between above 4 lac

Inferences:

From the above survey most of the respondents falls under 2- 3 lac bracket.


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How much you trade in stock MarketRESPONDENTS PERCENTAGE

10,000 - 50,000 23 46%

50,000 - 1,00,000 15 30%

1,00,000 - 1,50,000 8

Above 1,50,000 4 8%

16% 50

23

15

8

4

0

5

10

15

20

25

10,000 - 50,000 50,000 - 1,00,000 1,00,000 - 1,50,000 Above 1,50,000


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Interpretation:

46% respondents invest 10,000-50,000 30% respondents invest 50,000- 1, 00,000 16% respondents invest 1, 00,000- 1, 50,000 8% respondents invest above 1, 50,000

Inferences:

From the above survey most of the respondents invest 10,000- 50,000 in stock

market.


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How much Return you Get after Investing?

0

5

10

15

20

25

30

> 5 % 5 - 10 % 10 - 15 % 15 - 20 %

RESPONDENTS PERCENTSGE

Below 5% 10 20%

5- 10 % 27 54%

10- 15 % 9 18%

15- 20 % 4 8%

TOTAL 50 100%


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Interpretation:

20% of the respondents get below 5% 54% of the respondents get 5- 10 % 18% of the respondents get 10 - 15 % 8% of the respondents get 15-20 %

Inferences:

From the above survey most of the respondents get 5- 10 % returns on their

investments.


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Interpretation:

10% of the respondents are highly risky 54% of the respondents are average 18% of the respondents are Moderate 18% of the respondents are risk free

Inferences:

From the above survey most of the respondents are average risk takers.


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Which mode of trading do you prefer?

0

5

10

15

20

25

30

35

Online Offline

RESPONDENTS PERCENTAGE

Online 19 38%

Offline 31 62%

TOTAL 50 100%


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Interpretation:

38% of the respondents prefer online 62% of the respondents prefer offline

Inferences:

From the above survey most of the respondents prefer offline trading as they are

new to stock market.


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What has been your investment experience in stocks?RESPONDENTS PERCENTAGES

Excellent 5 10%

Good 12 24%

Average 20 40%

Bad 13 26%

TOTAL 50 100%

0

2

4

6

8

10

12

14

16

18

20

Excelent Good Average Bad


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Interpretation:

10% of the respondents feel excellent 24% of the respondents feel good 40% of the respondents feel average 26% of the respondents feel bad

Inferences:

From the above survey 40% of the respondents have an average investment

experience in stock market.


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What extra services do you expect from your broker?RESPONDENTS PERCENTAGES

Depository 2 4%

Marginal

Financing

4 8%

P.M.S 7 14%

Trading 9 18%

Research 9 18%

All the above 19 38%

TOTAL 50 100%

2

4

7

9

9

19

0 5 10 15 20

Depository

Marginal Financing

P.M.F

Trading

Research

All the Above


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Interpretation:

4% respondents prefer Depository service 8% respondents prefer Marginal Financing 14% respondents prefer P.M.S 18% respondents prefer Trading 18% respondents prefer research 38% respondents prefer all the above services

Inferences:

From the above survey most of the respondents prefer all services that any broker

must provide to its clients.


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Are you satisfied with the service of your Broker House?RESPONDENTS PERCENTAGES

Yes 27 54%

No 5 10%

Cant Say 18 36%

TOTAL 50 100%

27

5

18

0

5

10

15

20

25

30

Yes No Can't Say


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Interpretation:

54% of the respondents say yes 10% of the respondents say no 36% of the respondents say cant say

Inferences: From the above survey 54% of the respondents are satisfied the

services of their broker house.


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Rate the service according to your Criteria?RESPONDENTS PERCENTAGES

Excellent 5 10%

Very good 15 30%

Good 21 42%

Poor 9 18%

TOTAL 50 100%

0

5

10

15

20

25

Excillent Very Good Good Poor


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Interpretation:

10% of the respondents say excellent

30% of the respondents say very Good

42% of the respondents say Good

18% of the respondents say Poor

Inferences:

From the above survey most of the respondents rate good to the services provide

by their broker house.


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Have you heard of Indiabulls Securities?RESPONDENTS PERCENTAGES

Yes 44 88%

No 6 12%

TOTAL 50 100%

Yes, 44

No, 6

Yes

No


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Interpretation:

88% of the respondents know IndiabullsSecurities 12% of the respondents dont know about Indiabulls Securities

Inferences:

From the above survey most of the respondents know Indiabulls securities


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FINDINGS

In this survey most of the questionnaires are filled from brokerage houses where clients sit on the

terminal & trade in the stocks. As the data collected shows that people who mostly invest in the

market are businessmen & service class person who dont have enough time to keep continuous

watch on the market fluctuation so they need regular assistance from their relationship manager

who is assigned to them so every company is suggested to enforce their relationship managers to

stay in contact with their clients. There are some No answer in this survey because many time

clients may be with his friend who dont trade in the market & that friend might be interested or

not do the relationship manager in that brokerage firm must take some extra care for them. Here

difference is because of the presence of the friend of client in the brokerage house who doesnt

want to trade in the stock market because he might be afraid of losses or due to lack of resources.

But if that friend has lack of time than the relationship manager has to give a proper assistance &

dedication to that person so that friend can make himself to trade in the stocks. As technology

increases most of the people have less time to spend on the other activities than their core

business so most of the clients prefer online trading so they can put their bids whenever they

want as 24*7. In the case of online trading clients are not need to be provided any kind of

assistance from their relationship manager but if the dedicated relationship manager provide

them a good assistance can put that relationship manager & that organization apart from their

competitors. But even after the presence of internet some people like to trade through offline

mode reasons might be lack of knowledge or cost sensitive as offline product is used to being at

lower cost so here in offline that dedicated relationship manager has to be in contact with his

client. Most of the people look for moderate return because of presence of risk well as the age


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group changes the risk-taking factor as age increase people started investing in bonds where a

fixed return is possible. As the data shows most of the people were satisfied with their brokers

because they are giving them profits on their investment & they were ready to pay more to their

brokers if they get some extra services.


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RECOMMENDATION

The Recommendation which is to be suggested is as follow:-

Indiabulls securities should enhance the customer care department where queries can betimely solved.

Indiabulls securities should provide more security to the existing and prospective clients Indiabullssecurities should build its BRAND Image more strong by increasing visibility There should be more banners posters pamphlets distribution in the market to increase the

awareness level among the people

It should provide regular and update market information Special attention need to be given to the delivery of monthly & fortnightly report to the

clients

Timely release of Brokerage & Fast redressed of clients grievance is a major plus ifIndiabulls is looking to develop long term relationship with its clients

Services should be more efficiently delivered to the prospective clients in order todevelop a long term relationship with the clients.


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CONCLUSION

In spite of the bleak and grim outlook the future of capital market it is growing at a very high

pace. Taking this things into consideration there are lots of opportunity for the Broker House

which already exist and which are due to enter in the Indian market. These are little awareness

about Equity and Mutual fundsin India people have accepted it as one of the major investment

avenue. As people have entered in this particular investment avenue they have lost there money

because of movement in the market which is below the par value and this has shaken the faith of

investor in this particular avenue. Another reason for low investment in this sector is due to

country most of the companies not performing well and also due to the scams that are taking

place frequently Once people know about the benefit offered by it, Capital market will become

one the sought after investment avenue. As far as other product marketed by Indiabulls is

concerned they have a ready market. The only thing which is needed to focus on is that they

should have a strong marketing strategy so that prompt service and availability of forms is made

available to the investors at a short notice and if it keeps the traditional base for marketing in

India which is a price sensitive. We can say that Indiabulls has a great future ahead.

Indiabullshas emerged a very strong player in the field of distri bution of financial product

within a short period of one year in Northern India and is giving stiff competition to the entire

player in the Jaipur & other parts. If the progress of Indiabullsgoes in the same way then I can

say that Indiabulls will going to emerge as a major player in the Capital market. They have

much more potential to expand there business and market in India.


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ANNEXURE


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QUESTIONNARE

1. In which professions arssse you engaged in?Business Service

Professional Entrepreneur

2. Do you trade in stock market?Yes No Earlier, But now Stopped

3. How much is your income or your Credibility?Between 1 lac to 2 Lac Between 2 Lac to 3 Lac

Between 3 lac to 4lac Above 4 lac

4. How much you trade in stock Market?10,00050,000 50,0001, 00,000

1,00,0001, 50,000 Above 1, 50,000

5. How much Return you Get after Investing?

> 5 % 510 %

10-15% 1520 %

6. What according to you is your risk level?

Highly Risky Average


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Moderate Risk free

7.

Which mode of trading do you prefer?

Online trading Offline trading

8. What has been your investment experience in stocks?Excellent Good

Average Bad

9. What extra services do you expect from your broker?a. Depository servicesb. Margin financingc. Portfolio management services

d.

Trading

e. Research and Technical servicesf. All of the above

10.Are you satisfied with the service of your Broker House?Yes No Cant Say


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11. Rate the service according to your Criteria?

Excellent Very Good

Good Poor

12.Have you heard of Indiabulls Securities?Yes No


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BIBLIOGRAPHY

1. Varsha Kulkarni1 and NiveditaDeoVolatility of an Indian stock market:

A Random matrix approach

2. Catriona Purfield, Hiroko Oura, Charles Kramer and Andreas Jobst

Asian Equity Markets: Growth, Opportunities and Challenges

3 Forrest Capie, Terence C Mills , Geoffrey Wood

Gold as hedge against Dollar

4.N. J. YasaswyHow gold stacks up as investment option

5. G. Vasudha Asst. ProfessorTKR Institute of Management & Science, HyderabadGold as an investment option

6. Financials text: Business line, Economic times

“INVESTMENT IN CAPITAL MARKET IN INDIABULLS” AT INDIABULLS SECURITIES LTD.

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Transcript of “INVESTMENT IN CAPITAL MARKET IN INDIABULLS” AT INDIABULLS SECURITIES LTD.