This study is concerned with customer perception related with investment in Securities & Capital market.

OF

ALMONDZTHE FINANCIAL POWER HOUSE

ALMONDZ GLOBAL SECURITIES LTD

A PROJECT REPORT

Submitted by

SHIVANI SHARMA

Registration no:-

in partial fulfillment for the award of the degree

Of

MASTER OF BUSINESS ADMINISTRATION

Submitted to

Ms. Shivani thakur

GNA-IMT

Punjab Technical University, Jalandhar

2011-2013

PREFACE

1

“Experience is the best teacher”. The saying plays a very pivotal role in our

curriculum where in we try and understand the nuances of the theoretical

world with a blend of practical experience. It’s very important to understand

how and where to implement what we have studied. Knowledge in itself is a

continuous process. Getting practiced knowledge is an important thing for

existence for any business concern in the competition prevailing in an

industry a total awareness is the first and foremost thing necessary from all

aspects, working smarter seems to be as important as working harder and

longer.

I completed this project on “CUSTOMER PERCEPTION” in part

fulfillment of our MBA curriculum. The knowledge we garnered through

this exposure with the outside world will help us in taking a giant leap

towards understanding customer’s behavior and preferences.

ACKNOWLEDGEMENT

2

It is my pleasure to acknowledge the help we have received from different

individuals and all the teachers during the project period.My first sincere

appreciation and gratitude goes to respected MS.SHIVANI THAKUR,

Project guide, for his guidance, constructive comments, valuable suggestions

and inspirations. During the entire session, we have received endless help

from him.

Also, it gives me immense pleasure to again express my sincere and

wholehearted sense of gratitude to our esteemed MS.SHIVANI THAKUR

and all the teachers, for their invaluable and untiring guidance and

supervision throughout our Project Period .To derive benefits of their

enormous experience, it is a matter of great privilege for us.

Finally, I wish to say thanks to all the people who have helped us for their

kind cooperation.

DECLARATION

3

I, hereby declare that the research project report titled “the

securities market and financial institution of almondz ltd” is my

own original research work and this report has not been submitted

to any University/Institute for the award of any professional degree

or diploma.

Shivani sharma M.B.A (3rd Sem)

A&M Institutes, Pathankot

Date:Place:

4

TABLE OF CONTENTS

Sl. No INDEX PAGE NO

2) Industry profile 7-9

4) Introduction of topic 17-37

5) Literature survey 38

6) Objective of studies 39

7) Research methodology 40

8) Sample design 41

9) Analysis of study 42-54

10) Finding 55

11) Suggestion and recommendation 56

12) Appendices 57

13) Questionnaire 57-60

14) Bibliography 62

INDUSTRY PROFILE

5

Securities Markets and Financial Industry

The Securities Industry and Financial Markets Association (SIFMA) is a leading securities industry trade group[1] representing securities firms, banks, and asset management companies in the U.S. and Hong Kong. SIFMA was formed on November 1, 2006, from the merger of TheBond Market Association and the Securities Industry Association.[2] It has offices in New York City and Washington, D. C.

In October 2008, SIFMA laid off over 25% of its staff in the United States due to the "industry upheaval" which left its member firms in financial straits, and the loss of three of it primary member firms—Lehman Brothers, Bear Stearns, and Merrill Lynch.[1][3][4][5] The dismissals came at the same time as the United States Congress pledged to revamp the country's financial regulatory structure.[4]

SIFMA announced in May 2009 that it would also shed its London-based European operation. That operation will be merged into the London Investment Banking Association (LIBA).[6]

The 350-member American Securitization Forum (ASF) formerly operated as a forum of SIFMA.[7] On January 14, 2010, ASF announced that it had chosen to terminate its affiliation with SIFMA as well.[8]

In financial economics, a financial institution is an institution that provides financial services for its clients or members. Probably the most important financial service provided by financial institutions is acting as financial intermediaries. Most financial institutions are highly regulated by government.

Broadly speaking, there are three major types of financial institutions:[1]

1. Deposit-taking institutions that accept and manage deposits and make loans, including banks,building societies, credit unions, trust companies, and mortgage loan companies

2. Insurance companies and pension funds; and3. Brokers, underwriters and investment funds.

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Financial institutions provide service as intermediaries of financial markets. They are responsible for transferring funds from investors to companies in need of those funds. Financial institutions facilitate the flow of money through the economy. To do so, savings arisk brought to provide funds for loans. Such is the primary means for depository institutions to develop revenue. Should the yield curvebecome inverse, firms in this arena will offer additional fee-generating services including securities underwriting.

A security is generally a fungible, negotiable financial instrument representing financial value.[1] Securities are broadly categorized into:

debt securities (such as banknotes, bonds and debentures), equity securities, e.g., common stocks; and, derivative contracts, such as forwards, futures, options and swaps.

The company or other entity issuing the security is called the issuer. A country's regulatory structure determines what qualifies as a security. For example, private investment pools may have some features of securities, but they may not be registered or regulated as such if they meet various restrictions.

Securities may be represented by a certificate or, more typically, "non-certificated", that is in electronic or "book entry" only form. Certificates may be bearer, meaning they entitle the holder to rights under the security merely by holding the security, or registered, meaning they entitle the holder to rights only if he or she appears on a security register maintained by the issuer or an intermediary. They include shares of corporate stock or mutual funds, bondsissued by corporations or governmental agencies, stock options or other options, limited partnership units, and various other formal investment instruments that are negotiable and fungible.

Commercial enterprises have traditionally used securities as a means of raising new capital. Securities may be an attractive option relative to bank loans depending on their pricing and market demand for particular characteristics. Another disadvantage of bank loans as a source of financing is that the bank may seek a measure of protection against default by the borrower via extensive financial covenants. Through securities, capital is

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provided by investors who purchase the securities upon their initial issuance. In a similar way, the governments may raise capital through the issuance of securities (see government debt).

ORGANISATION PROFILE

8

Almondz Global Securities Limited (AGSL) is one of the leading Investment Banks in India. The company was incorporated in 1994 , and is listed on the BSE and NSE .

IT DEAL IN:-

CORPORATE FINANCE

DEBT PMS

DISTRIBUTION FINANCIAL PRODUCTS

EQUITY BROKING

COMMODITIES BROKING

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DATE OF ESTABLISHMENT:- 1994REVENUE:- 586.51(MILLION)MARKET CAPITAL:- 648.5924(MILLION)BUSINESS OPERATION:- FINANCE –STOCK BROKING

Almondz Global Securities Limited (AGSL), formerly the Allianz Securities Ltd is one of the leading Investment Banks in India. The company was incorporated in 1994 and is listed on the Bombay Stock Exchange. Its main business lines are: Corporate Finance, Distribution of Financial Products, Private Clients, Portfolio Management Services, and Equity Broking.

Services offered by the company include:

Equity - IPOs , Private Equity, Equity Broking – Retail , Equity Broking – Institutional, Equity Research,Portfolio Management Services   

Debt- Private Placement of Debt, Debt Market, Portfolio Management (PMS) and Project Finance 

Advisory -Infrastructure Advisory Distribution -Mutual Fund, Equity, Tax Saving Instruments, Fixed

Deposits, Insurance Products Commodities and Brokerage    Insurance- Life Insurance Products, General Insurance Products and

Reinsurance

Subsidiaries of the company include:

Almonds capital & management Services Ltd Almonds global securities Ltd Almonds Commodities put. Ltd

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Key executives:-

Sino Name Designation

1 Atoll Kumar Sheila Chairman

3 Vine Mehta Managing Director

2 Rajiv Loch an Johan Company Secretary

4 Atoll Kumar Sheila Non Executive Director

5 Naiveté Singh Solti Executive Vice Chairman

6 Sanjay Kumar Tiara Additional Director

7 Rajiv Loch an Johan Vice President

8 Krishna Loll Khetarpaul Non Executie & Independent Director

9 Seta Ram Banal Non Executive & Independent Director

10 Surrender Kumar Sod Non Executive & Independent Director

11 Shiva Karin Singh Non Executive & Independent Director

12 Jag deep Singh Whole Time Director

Competitors:-

CompanySales

(Rs.Million)

CurrentPrice

Change (%)

P/E RatioMarket

Cap.(Rs.Million)

52-WeekHigh/Low

Religare Enterprises 1015.92 440.00 -0.68 0.00 61798.30 529/424

Edelweiss Financial 4487.39 30.15 -3.67 34.68 23680.68 68/30

India Infoline 6989.47 71.10 -0.07 18.79 20553.73 130/62

Motilal Oswald Fin 495.28 82.65 -2.07 26.34 12188.98 232/80

Indenture Growth’s 243.90 233.90 1.06 87.75 4860.45 247/92

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Egoist BNP Paribas 2365.73 19.00 -0.78 9.81 4373.10 40/19

Products:-

Product Name Year MonthSales 

QuantitySales

Value(Rs.Million)% of STO

Trading of

Shares/Securities2010 03 0.00 321.48 1.22

Broking Activities 2010 03 0.00 279.73 1.06

Advisory & Consultancy

Fees2010 03 0.00 169.49 0.64

SNAPSHOT OF ALMONDZ GLOBAL SECURITIES LT (AGSL)

OPEN24.85

PREVIOUS CLOSE25.50

DAY HIGH24.85

DAY LOW22.35

52 WEEK HIGH10/8/10 - 84.90

52 WEEK LOW08/10/11 - 20.00

MARKET CAP573.4M

AVERAGE VOLUME 10 D2.9K

EPS TTM3.48

SHARES OUTSTANDING25.5M

AGSL Does Not Pay Dividends

P/E TTM6.5x

K = Thousands  M = Millions  B = Billions

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PARTICULARS MAR--11 DEC---10

SALE 1926 1601

OTHER INCOME 99 81

TOTAL EXPENSES 1644 1391

NET PROFIT 153 91

EQUITY 1519 1529

Attribute Value Date

PE ratio 10.29 08/07/11

EPS (Rs) 2.57 Mar, 11

Sales (Rs crore) 19.26 Mar, 11

Face Value (Rs) 6  

Net profit margin (%) 13.71 Mar, 10

Last dividend (%) 7 31/03/11

Return on average equity 10.67 Mar, 10

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Awards & Achievements:

All India Rank in PSU & SLU Bonds Placement *FY 2007:                3rd  FY 2006:                2nd  FY 2005:               

1st  FY 2004:                2nd All India Rank in Private Placement & Corporate Debt *FY 2007:                5th  FY 2006:                5th  FY 2005:               

4th  FY 2004:                3rd All India 6th rank in Domestic Bond Placement for FY 2005. All India 11th rank in Domestic Bond Placement FY 2006. PRU CHAIRMAN AWARD, 2005-2006 in Retail Category (the only

award given by any AMC in India.)

Recent developments

Al Anwar Holdings SAOG, which makes investments in ventures across Oman’s financial and industrial sectors, has expanded into India with its maiden investment of $5.7 million in Almondz Global Securities Limited, which is one of the leading full service category-I investment bank in India.

Mission: Excellence in financial services

To attain global best practices and become a world-class financial services enterprise – guided by its purpose to move towards greater degree of sophistication and maturity.

To work with vigor, dedication and innovation to achieve excellence in service, quality, reliability, safety and customer care as the ultimate goal.

To earn the trust and confidence of all stakeholders, exceeding their expectations and make the Company a respected household name.

To consistently achieve high growth with the highest levels of productivity.

To be a technology driven, efficient and financially sound organization.

To contribute towards community development and nation building. To be a responsible corporate citizen nurturing human values and

concern for society, the environment and above all the people. To promote a work culture that fosters individual growth, team spirit

and creativity to overcome challenges and attain goals. To encourage ideas, talent and value systems.

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To uphold the guiding principles of trust, integrity and transparency in all aspects of interactions and dealings.

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INTRODUCTION OF TOPIC

SECURITIES MARKET

Definition of ‘Securities’—Securities refers to an Instrument representing Ownership (Stocks), a debt agreement (Bonds) or the rights to ownership (Derivatives). A security is essentially a contract that can be assigned a value and traded.

Functions of Securities Market

Securities Market is a place where buyers & sellers of securities can enter into Transactions to Purchase and sell shares, bonds, debentures etc.

It performs an important role of enabling corporate, entrepreneurs to raise resources for their companies and business ventures through Public issues (IPO).

Transfer of resources from those having ideal resources (investors) to others who have a need for them (corporate) is most efficiently achieved through the securities market.

Securities markets provide channels for reallocation of savings to investments and entrepreneurship.

Savings are linked to investments by a variety of intermediaries, through a range of financial products, called ‘Securities’.

The Participants in the securities market

The securities market essentially has three categories of participants, namely:

Issuers of Securities, Investors in Securities Intermediaries, such as merchant bankers, brokers etc.

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While the corporate and Government raise resources from the securities market to meet their obligation, it is household that invest their savings in the securities market.

Securities & Exchange Board of India (SEBI)

ESTABLISHMENT OF SEBI

Securities and Exchange Board of India (SEBI) is a body created by the Government of India registered under The SEBI Act 1992 which acts as a regulatory authority of security market with its head office at Mumbai

PREAMBLE

The Preamble of the Securities and Exchange Board of India describes the basic functions of the securities and Exchange Board of India as:

“To protect the interests of investors in securities and to promote the development of, and to regulate the Securities Market and for matters connected therewith or incidental thereto”History of Stock Exchange

Indian Stock Markets are one of the oldest markets in Asia. Its history dates back to nearly 200 years ago. In 11th century France the courratiers de change were concerned with managing and regulating the debts of agriculture communities on behalf of the bank. As these men also traded in debts, they could be called the First Brokers.

The Dutch Later started joint stock companies, which let shareholders invest in business ventures and get a share of their profits – or losses. In 1602, the

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Dutch East India Company issued the first shares on the Amsterdam Stock Exchange. It was the first company to issue stocks & bonds.

Stock Exchange

A stock exchange is a platform to buy and sell stocks. The stock quotes in the market are decided by demand and supply.

Stock Markets used to be market place where a group of Buyers and Sellers used to gather together and express the willingness to buy/sell a stock at a willing price. Whenever the two match a deal took place.But with the advent of IT, now the stock markets have become almost paperless. In order to Trade, one has to open a trading account with a broker, transfer the requisite amount and trading in stocks.

The stock Exchanges in India are under the overall supervision of the regulatory authority i.e. The Securities and Exchange Board of India (SEBI)

Provide a Trading platform, where buyers and sellers can meet to transact in Securities.

The trading platform provided by NSE is an electronic one and there is no need for buyers & sellers to meet at a physical location to trade.

They can trade through the computerized trading screens.

We have 22 Stock Exchanges at state level in India

Bombay Stock Exchange (BSE)

Major Stock Exchange in India

Bombay Stock Exchange

(BSE)

National Stock Exchange

(NSE)

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Bombay Stock Exchange is the oldest stock Exchange in Asia, located at Dalal Street in Mumbai, India. It was organized by a group of 22 stock brokers in 1875, who began trading under a Banyan tree opposite the Town Hall of Bombay from the 1850s as the native shares and Stockbrokers Association. The stock exchange had moved into the brokers Hall one Mr. James m MacLean inaugurated it in 1899. The plot of Land on which the BSE building now stands was bought in 1929 and the building was occupied in 1930.

Mr. Premchand Roychand, a leading stockbroker of those days, helped in settling out rules and regulation of trading of stocks at the stock exchange in Mumbai.. The Bombay Stock Exchange was recognized as the first stock exchange in the country under the Securities Contracts (Regulation) Act in 1959.

Features of Bombay Stock Exchange

About 5650 Indian Companies are listed with Bombay Stock exchange

1. The Securities and Exchange Board of India (SEBI) notified the stock Exchange, then an association of Persons as a corporation under BSE in accordance with the provisions of the Companies Act, 1956.

2. The Exchange is managed by a Board of Directors, which formulates Policies and supervises all other issues.

3. It is present in 417 cities and towns across India.

BSE Sensitive Index or SENSEX

The BSE Sensex or Bombay Stock Exchange sensitive index is a value-weighted index composed of 30 stocks with the base April 1979= 100

These 30 scrips are most actively traded stocks, representative of various sectors, on the Bombay Stock Exchange. The list changes from time to time, but comprises market heavy weights.

The list is selected by the Index Committee. This committee consists of all sorts of individuals including academicians, mutual fund managers, finance journalists, independent governing board members and other participants in the financial markets.

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National Stock Exchange (NSE)

The National Stock Exchange of India (NSE) is one of the largest and most advanced stock markets in India. The NSE is the World’s third largest stock exchange in terms of transactions. It is located in Mumbai, the financial capital of India. It provides the secondary market for investors. NSE was launched in 1995 with more emphasis on technology and nation wide reach.

Both the Exchanges NSE and BSE offer investors to trade on companies (buy and sell).It was set up in 1993 to encourage stock exchange reform through system modernization and competition. It was opened for trading in mid 1994. It was recently accorded recognition as a stock exchange by the department of Company Affairs.

NSE’s mission is settling the agenda for change in the securities markets in India. The NSE was set up with the main objectives of:

1. Establishing a nation wide trading facilities for equities, debt instruments and hybrids

2. Ensuring equal access to investors all over the country through an appropriate communication network.

3. Providing a fair, efficient and transparent securities market to investors using electronic trading systems, enabling shorter settlement cycles and book entry settlements systems

4. Meeting the current International Standards of Securities Markets.

5. The standards set by NSE in terms of Market Practices and Technologies have become industry benchmarks and are being emulated by other market

The NIFTY

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The National Stock Exchange has an Index called the Nifty (Officially Called S&P CNX Nifty). This name can be credited to the 50 stocks that comprise its Index.

The Nifty has 50 stocks covering 24 sectors, as against 30 stocks and 13 sectors for the Sensex.

The 50 Nifty stocks account for around 60percent of the market capitalization.

Market Timings for NSE & BSE

Market Timings for NSE and BSE are: 9.55 A.M. to 3.30 P.M. (excluding Saturday, Sunday and National Holidays)

Post Closing Session Timing

Post Session Time for BSE : 3.40 p.m. – 4.00 p.m.

Post Session Time for NSE : 3.50 p.m. – 4.00 p.m.

Proposed Market timings from 04-01-2010

Market Timings for NSE and BSE from 04-01-2010 will be from: 9 A.M. to 3.30 P.M

Bull Market / Bear Market

Bull market

A bull Market is a Financial Market where prices of instruments (e.g. Stocks) are on average, trending higher.

The Bull Market tends to be associated with rising investor confidence and expectations of further capital Gains

A market in which prices are rising. A market participant who believes prices will move higher is called a “Bull”

A news item is considered Bullish if it is expected to result in higher prices. Bull Markets are generally characterized by high trading volume.

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Bull Markets are movements in the stock markets in which prices are rising and the consensus is that prices will continue moving upward. During this time, economic production is high , jobs are plentiful and inflation is low.

Bear Market

Bear Market Prolonged period of falling share prices It dominates selling pressure in the market place, brought about by

Bears, or adverse economic or Political factors, e.g. a change in the industrial policy of the government, imposition of price control, drought or flood, free imports, etc, or a change in the government, income tax raids, etc.

Bear Markets are the stock prices are falling, and the view is that they will continue falling. The economy will slow down, coupled with a rise in unemployment and inflation.

Meaning- SHARE OR STOCK

Share is a total equity capital of a company which is divided into equal units of small Denominations, each called a share.

Share or Stock is a document issued by a company, which entitles its holder to be one of the owners of the company. A share is issued by a company or can be purchased from the stock market.

For Example, in a company the total equity capital of Rs 2,00,00,000 is divided into 20,00,000 units of Rs 10 each. Each such unit of Rs 10 is called a Share. Thus, the company then is said to have 20, 00,000 equity shares of Rs 10 each.

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Types of Shares:

Equity Shares

1) An Equity share, commonly referred to as ordinary share represents the form of fractional ownership in a business venture.

2) Equity Securities are not entitled to any payment ( Interest Payable )3) Equity shares has voting rights at all general meetings of company4) Equity Holders are entitled to the “upside” of the business and to

control the business5) Share the profits of the company in the form of dividend and Bonus

shares

Preferance shares

Preference shares enjoy preference as to the repayment of capital at the time of liquidation and payment of fixed rate of dividend over the equity shareholders.

1. prior claim on income2. claim on assets are superior3. donot have any management control

Rights Issue / Rights Shares :

The issue of new securities to existing shareholders at a ratio to those already held, at a price. For e.g. a 2:3 rights issue at Rs 125, would entitle a shareholder to receive 2 shares for every 3 shares held at a price of Rs 125 per share.

Bonus shares :

Shares issued by the companies to their shareholders free of cost based on the number of shares the shareholder owns.

Why do companies need to issue shares to the public?

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Most companies are usually started privately by their promoter(s). However the Promoters capital and the borrowings from banks and financial institutions may not be sufficient for setting up or running the business over a long term.

Companies invite the public to contribute towards the equity and issue shares to individual investors.

The way to invite share capital from the public is through a ‘Public Issue’. Simply stated, a public issue is an offer to the public to subscribe to the share capital of a company. Once this is done, the company allots shares to the applicants as per the prescribed rules and regulations laid down by SEBI.

The Securities Market has two interdependent segments:

Primary Market Secondary Market

Primary Market

The primary market provides the channel for sale of new securities.

Primary market provides opportunity to the issuers of Securities such as Government as well as Corporate, to raise resources to meet their requirements of investment and/or discharge some obligation.

Primarily, issues can be classified as:

1) Initial Public Offer2) Follow on Public Offer3) Rights Issue

The classification of issues is illustrated below:

Initial Public Offer (IPO)

An Initial Public Offer (IPO) is the selling of Securities to the public by an unlisted company in the Primary Market.

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IPO is when an unlisted company makes either a fresh issue of Securities or an offer for sale of its existing securities or both for the first time to the public.

This paves a way for listing and trading of the issuer’s securities.

There are two types of issues,

o Fixed Price Issues

One, where company and Lead Merchant Banker fix a price (Called fixed price)

o Book Building Issue

Other, where the company and the Lead Manager (LM) stipulate a floor price or a price band and leave it to market forces to determine the final price (Price discovery through book building process)

Fixed Price Issues

An issuer company is allowed to freely price the issue. The basis of issue price is disclosed in the offer document where the issuer discloses in detail about the qualitative and quantitative factors justifying the issue price. The issuer company can mention a price band of 20% (cap in the price band should not be more than 20% of the floor price) in the Draft offer documents filed wit SEBI and actual price can be determined at a later date before filing of the final offer document with SEBI / ROC’s

Book Building Issue

Book building is basically a process used in IPO’s for efficient price discovery

It is a mechanism where, bids are collected from investors at various prices, which are above or equal the floor price. The offer price is determined after the bid closing date.

Under Book Building, investors bid for shares at the floor price or above and after the close of the book building process the price is determined for allotment of shares

In case of book Building, the demand can be known everyday as the book is being built

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Book building process should remain open for public for a minimum of 3 days.

Price Band

The prospectus may contain either the floor price for the securities or a price band within which the investors can bid. The spread between the floor and the cap of the price band shall not be more than 20%

Price Band can have a revision and such a revision in the Price Band shall be widely disseminated by informing the stock exchanges, by issuing a press release and also indicating the change on the relevant website and the terminals of the trading members participating in the book building process

In case the price band is revised, the bidding period shall be extended for a further period of three days, subject to the total bidding period not exceeding ten days.

They may issue the securities at face value, or at a discount/premium and these securities may take a variety of forms such as equity, Debt etc.

They may issue the securities in domestic market and/or international market.

Floor Price

Floor Price is the minimum price at which bids can be made

Cut-Off Price

In book building issue, the issuer is required to indicate either a price band or a floor price in the red herring Prospectus. The actual discovered issue price can be any price in the price band or any price above the floor price . this issue price is called “Cur off Price”.

This is decided by the issuer and LM after considering the book and investors appetite for the stock. SEBI (DIP) guidelines permit only retail individual investors to have an option of applying at cut off price.

Face value of a share / debenture

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The nominal or stated amount (in Rs) assigned to a security by the issuer

For shares, it is the original cost of the stock shown on the certificate

For Bonds, it is the amount paid to the holder at maturity

For a Debt security, face value is the amount repaid to the investor when the bond matures (usually, government securities or corporate bonds have a face value of Rs100) The price at which the security trades depend on the fluctuations in the interest rates in the economy.

Premium and Discount in a Security Market

Securities are generally issued in denominations of 5, 10 or 100. This is known as the Face value or Par value of the security

When a security is sold above its face value, it is said to be issued at a Premium

When a security is sold at less than its face value, it is said to be issued at a discount

Minimum number of days for which an IPO subscription list has to remain open

In the case of fixed price issues, subscription list for public issues has to remain open for at least 3 working days and not more than 10 working days.

In case of Book Building issues, the minimum and maximum period for which bidding has to remain open is 3 – 7 working days extendable by 3 days in case of a revision in the price band.

Allotment of an IPO

Allotment as per SEBI guidelines, the Basis of allotment should be completed with 15 days from the issue close date.

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On the basis of allotment within 2 working days the details of credit to demat account / allotment advice and dispatch of refund order needs to be completed.

Listing of Share

Once the allotment process is completed next would be listing of share in the exchange. It would take around 3 weeks after the closure of the book built issue.

A ‘Registrar’ to an issue

The registrar finalizes the list of eligible allot-ees after deleting the invalid applications

It ensures that the corporate action for crediting of shares to the Demat accounts of the applicants is done.

It ensures that the dispatch of refund orders to those applicable is sent. The Lead Manager coordinates with the registrar to ensure that the flow of applications from collecting bank branches, processing of the applications and other matters inn relation to applications are followed till the allotment is finalized.

Dispatch security certificates and refund orders completed and securities listed.

NSE provides facility for IPO

Nose’s electronics network spans across the country providing access to investors in remote areas.

NSE decided to offer this infrastructure for conducting online IPO’s through the book building process.

NSE operates a fully operated screen based bidding system called NEAT IPO that enables trading members to enter bide directly from their offices through a sophisticated telecommunication network.

Book building through the NSE system offers several advantages:

The NSE system offers a nation wide bidding facility in Securities It provide a fair ,efficient & transparent method for collecting bids

using the latest electronic trading systems Costs involved in the issue are far less than those in a normal IPO. The system reduces the time taken for completion of the issue process.

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The IPO market timings are from 10a.m. to 3 p.m. on the last day of the IPO, the session timings can be further extended on specific request by the Book running Lead Manager.

Follow on Public Offering (Further Issue )

FPO is when an already listed company makes either a fresh issue of securities to the public or an offer for sale to the public, through an offer document.

Rights Issue

Rights Issue is when a listed company which proposes to issue fresh securities to its existing shareholders as on a record date.

The rights are normally offered in a particular ratio to the number of securities held prior to the issue.

This route is best suited for companies who would like to raise capital without diluting stake of its existing shareholders.

Secondary Market

Secondary market refers to a market where securities are traded after being initially offered to the public in the primary market and/or listed on the stock exchange

Majority of the trading is done in the secondary market. Secondary market comprises of equity markets and the debt markets

Role of the Secondary Market

For the General Investor, the secondary Markey provides an efficient platform for trading of his securities.

For the management of the company, Secondary equity markets serve as a monitoring and control conduit- by facilitating value – enhancing control activities, enabling implementation of incentive – based management contracts, and aggregating information (via price discovery ) that guides management decisions

Settlements

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Rolling T+2 settlements or cash – All trades that take place on a given date will be settled in the next 2 working days ( The seller must deliver and the purchaser must pay for that which has been bought )

Square up within a settlement or Intraday- Netting of all the transactions done on T day (Trading day) basis. Squaring off the obligation the same day.

Auctions- In case of pay- in default securities are auctioned in the auction market.

Pay- in and Pay-out of funds and securities:

Delivery Generation T+1 Settlement T+2

Clearing Corporation

It is an organization which works with the exchanges to handle confirmation, delivery and settlement of transactions. Such corporations play a key role in ensuring that executed trades are settled within a specifies period of time and in an efficient manner also called clearing firm or clearing house. There are two main clearing corporation in India :

NSCCL – The National Securities Clearing Corporation Ltd. BOI Shareholding Ltd – Bank of India Shareholding Ltd.

National Securities Clearing Corporation Limited (NSCCL)

National Securities Clearing Corporation Limited (NSCCL) is a wholly owned subsidiary of NSE

The first clearing corporation to be established in the country The first clearing corporation to introduce settlement guarantee

BOI Shareholding Ltd.

BOI Shareholding a joint venture between Bank of India and BSE Manages the clearing and settlement activities of Bombay Stock

Exchange BOISL is also business partner of both NSDL and CDSL and provides

depository services to both clearing members and investors.

30

DEPOSITORY

A Depository is a facility for holding securities, which enables securities transactions to be processed by book entry.

To achieve this purpose , the depository may immobilize the securities or dematerialize them ( so that they exist only as electronic records )

India has chosen the dematerialization route In India , a depository is an organization, which holds the beneficial

owner’s securities in electronic form, through a registered depository participant (DP). A Depository functions somewhat similar to a commercial bank. To avail of the services offered by a depository, the investor has to open an account with a registered DP.

A ‘Depository Participant’ (DP) is an agent of the depository who is authorized to offer depository services to investors. Financial Institutions, banks , Custodians, and stock brokers complying with the requirements prescribed by SEBI/ Depositories can be registered as DP

‘Beneficial Owner’ is a person in whose name a demit account is opened with the depository for the purpose of holding securities in the electronic form.

‘Dematerialization’ is a process by which physical certificates are converted into electronic form

As discussed above, all the transactions in the shares take place through a depository account

All securities traded in the secondary market have an identification number known as ISIN

‘ISIN’ ( International Securities Identification Number ) is the unique identification number given to a security of an issuer at the time of admitting such security in the depository system

‘Issuer’ means any entity making an issue of securities

There are two Depositories in India:

National Securities Depository Limited (NSDL) Central Depository Services Limited (CDSL)

National Securities Depository Limited ( NSDL )

The enactment of Depositories Act in august 1996 paved the way for the establishment of NSDL, the first and the largest depository in India.

31

This depository promoted by institutions on national stature responsible for economic development of the country has since established a national infrastructure of international standards that handles most of the securities held and settled in dematerialized form in the Indian capital market.

NSDL DP-ID of Almonds securities – IN302236

Central Depositories Service Limited (CDSL)

CDSL is Central Depository Services Limited. CDSL received the certificate of commencement of Business from

SEBI in February,1999 CDSL was promoted by Bombay Stock Exchange Limited (BSE)

jointly with leading banks such as State Bank Of India, Bank of India, Bank of Baroda , Standard Chartered Bank, Union Bank Of India and Centurion Bank.

CDSL DP-ID of Almonds securities – 29900

Almonds Securities Ltd Organizational Structure

32

FINANCIALSAlmonds limited Securities Ltd. : Annual Results  

(Rs. in Crore)

 March ' 0912 Months 

March ' 0812 Months 

March ' 0712 Months

       Sales   391.88  617.35  422.83Other Income   11.40  11.32  23.78Stock Adjustment   0.00  0.00  0.00Raw Material   0.00  0.00  0.00Power And Fuel   0.00  0.00  0.00Employee Expenses   111.61  105.41  105.98Excise   0.00  0.00  0.00Admin And Selling Expenses   236.58  0.00  0.00

CEO

SUPPORT SALES

ONLINE SALESEVP’s

OFFLINE SALESEVP’s

Head Technology Head Finance

Head Recruitment Head Audit

Head Customer Care & Training

Head HR

33

Research And Development Expenses   0.00  0.00  0.00Expenses Capitalized   0.00  0.00  0.00Other Expenses   30.90  114.58  112.24Provisions Made   0.00  0.00  0.00Operating Profit   12.80  397.35  204.61Interest   19.45  15.69  14.14Gross Profit   4.74  392.98  214.25Depreciation   24.22  21.21  14.44Taxation   -6.60  123.11  62.42Net Profit / Loss   -12.88  248.66  137.39Extra Ordinary Item   0.00  0.00  0.00Prior Year Adjustments   0.00  0.00  0.00       Equity Capital   50.69  50.69  17.83Equity Dividend Rate   0.00  0.00  0.00Agg.Of Non-Prom. Shares (in Lacs)   1,680.68  1,540.76  0.00Agg.Of Non Promoter Holding(%)   66.32  60.80  0.00OPM(%)   3.26  64.36  48.39GPM(%)   1.17  62.51  47.97NPM(%)   -3.19  39.55  30.76EPS (in Rs.)   -0.51  9.81  15.41

Almonds Global Securities- Key Fundamentals

Market Cap (Rs Cr.): 58EPS - TTM (Rs): 2.04P/E Ratio (x): 11.03Face Value (Rs): 6.00Latest Div. (%): 7.00Div. Yield (%): N.A.Book Value / sh. (Rs) : 39.12P/B Ratio (x): 0.58

(Profit & Loss)

(Rs. in Crores)

Standalone |Consolidated

34

Particulars Mar-10 Mar-09 Mar-08 Mar-07 Mar-06 Mar-05

INCOME :            

Operating Income 78.46 69.08 88.21 43.92 51.72 1,017.45

Other Income 1.66 1.20 3.06 1.14 0.40 0.40

Total Income 80.12 70.28 91.27 45.06 52.12 1,017.85

EXPENDITURE :            

Operating & Administration Expenses

35.93 29.21 50.42 26.22 31.44 1,005.98

Miscellaneous Expenses 2.93 4.45 3.29 0.98 0.78 0.38

Interest 1.73 2.53 3.23 2.40 2.60 2.16

Less: Pre-operative Expenses Capitalised

0.00 0.00 0.00 0.00 0.00 0.00

Employee Expense 20.70 21.98 18.51 6.02 4.20 2.23

Total Expenditure 61.29 58.17 75.45 35.62 39.02 1,010.75

Gross Profit 18.83 12.11 15.82 9.44 13.10 7.10

Depreciation 1.90 1.97 1.24 0.43 0.27 0.17

Profit Before Tax 16.93 10.14 14.58 9.01 12.83 6.93

Tax 6.62 3.66 4.65 3.19 4.85 2.41

Fringe Benefit tax 0.00 0.20 0.27 0.14 0.19 NA

Deferred Tax -0.47 0.27 -0.28 0.09 0.03 0.00

Reported Net Profit 10.78 6.01 9.94 5.59 7.76 4.52

Extraordinary Items -0.48 0.10 -1.43 -0.05 -0.22 0.11

Adjusted Net Profit 11.26 5.91 11.37 5.64 7.98 4.41

Adjustment below net profit 0.00 0.00 -2.82 0.00 0.01 4.24

P & L Balance brought forward

23.50 18.38 12.15 8.64 4.41 -2.04

Appropriations 1.25 0.89 0.89 2.08 3.54 2.31

P & L Balance carried down 33.03 23.50 18.38 12.15 8.64 4.41

Dividend 1.07 0.76 0.76 1.44 2.40 1.59

Preference Dividend 0.00 0.00 0.00 0.00 0.00 0.00

Equity Dividend % 7.00 5.00 5.00 15.00 25.00 25.00

Earnings Per Share-Unit Curr

4.19 2.32 4.76 3.34 5.70 4.05

Earnings Per Share(Adj)-Unit Curr

4.19 2.32 4.76 3.34 5.70 4.05

Book Value-Unit Curr 39.87 35.77 39.68 16.09 14.42 10.62

Cash Flow(Rs. in Crores)

ParticularsMar-

10Mar-

09Mar-

08

35

Cash and Cash Equivalents at Begining of the year

37.93 28.93 3.19

Net Cash from Operating Activities -38.42 56.11 -22.83

Net Cash Used In Investing Activities -13.72 -3.12 -4.09

Net Cash Used In Financing Activities 24.11 -43.99 52.66

Net Inc/(Dec) In Cash And Cash -28.03 9.00 25.74

Cash And Cash Equivalents At End Of The Year

9.90 37.93 28.93

Key Ratios

YearsMar-

10Mar-

09Mar-

08Mar-

07Mar-

06

Debt-Equity Ratio 0.1 0.3 0.7 1.0 1.2

Long Term Debt-Equity Ratio

0.0 0.0 0.0 0.2 0.2

Current Ratio 3.7 3.0 2.0 1.6 1.5

Fixed Assets 4.6 4.5 8.8 7.9 14.2

Inventory 1.8 1.7 1.9 1.5 2.2

Debtors 7.5 5.4 8.6 7.7 8.9

Interest Cover Ratio 10.8 5.0 6.2 4.8 5.9

PBIDTM (%) 25.7 20.8 23.1 26.3 30.1

PBITM (%) 23.3 18.0 21.8 25.3 29.6

PBDTM (%) 23.5 17.2 19.6 21.0 25.1

CPM (%) 15.8 11.4 13.8 13.4 15.4

APATM (%) 13.5 8.6 12.5 12.4 14.9

ROCE (%) 16.6 11.3 21.4 25.5 47.8

RONW (%) 10.9 6.9 20.8 25.1 51.7

PE 12.7 6.9 11.2 17.3 4.5

EBIDTA 20.6 14.6 19.1 11.8 15.7

DivYield 0.8 1.9 0.7 1.6 7.1

PBV 1.3 0.5 1.3 3.6 1.8

EPS 4.2 2.3 4.8 3.3 5.7

LITERATURE SURVEY

36

Capital Markets ReviewMalaysian Finance Association 

Prof. Dr. Fauzias Mat Nor - Chief EditorAssoc. Prof. Dr. Low Soo Wah - Managing Editor

The Capital Markets Review (CMR) was formerly published by the Kuala Lumpur Stock Exchange (now known as Bursa Malaysia) and the Research Institute of Investment Analyst Malaysia (RIIAM). Beginning 2005, the Malaysian Finance Association (MFA) has been given the privilege to take over the publication of CMR. Published twice a year, in November and December, CMR contains papers in both English and Bahasa Melayu. CMR publishes double-blind refereed articles in various aspects of finance, including Asset Pricing, International Finance, Corporate Finance, Banking, Risk and Insurance, Market Microstructure and Islamic Banking and Finance. The journal welcomes empirical and theoretical contributions that have not been previously published.

The journal is available free to members of the MFA The subscription price for individuals is RM38.00 per volume (2 issues) and RM50.00 for institutions (including postage and handling) for subscribers in Malaysia and Singapore. For overseas subscribers, the subscription price is USD30.00 per volume.

 

OBJECTIVES OF STUDY

37

1. To evaluate the views of the common people about investment in Capital market.

2. To find out the problems customer generally face while investing in Securities

3. To find out the satisfaction level of the investors.

4. To trace the customer opinion for the different mode of investment.

RESEARCH METHODOLOGY

38

DATA COLLECTION

Both primary and secondary data has been collected for meeting the

objectives of the research.

PRIMARY DATA

For the collection of primary data a structured questionnaire was

prepared which was administered to the respondents.

SECONDARY DATA

For the purpose of collection of secondary data the sources of

information such as internet websites, magazines were used.

RESEARCH DESIGN

Exploratory research design was used for the research.

RESEARCH INSTRUMENT

Questionnaires were used as a research instrument for the research.

.

RESEARCH DESIGN

39

Data source - The study is based on both primary and secondarydata.

Research instrument - Questionnaire

Research approach- Survey, Observation

Sampling unit- Customers

Sample size- 100 customers

Sampling technique:- non-probability sampling technique

ANALYSIS OF THE STUDY

1.To which category do you belong?

40

CATEGORY RESPONDENTS %BUSINESS 30SERVICE 60

PROFESSIONAL 20TOTAL 100

According, to the data most of the respondents are from service field because most of the respondents belong to defense.

2. Are you aware of capital market?

41

RESPONDENTS %YES 60NO 40

TOTAL 100

According, to the data 60% persons are aware of the capital market because they are educated and concerned about the world economy.

3. Are you investing in Capital markets?

42

CONDITION RESPONDENTS %YES 40NO 60

TOTAL 100

According to the data, majority of the people are aware of capital market but lack of safety about the money, they are not much concerned with the investment.

4. Which type of market is known to you?

43

MARKET RESPONDENTS %NSE 30BSE 20

BOTH 50TOTAL 100

According to the data most of the respondents are aware of both types of market (NSE and BSE) because they usually invest in both the phases of the market.

1. Through which channel you are in touch with capital market?

44

CHANNEL %BROKER 70

SUBBROKER 30TOTAL 100

According to the data, most of the respondents invest their money through brokers because there is facility of online share transfer.

2. which factor do you consider while investing in capital market?

45

FACTOR INVESTORS %HIGH RETURN 40

QUICK GROWTH 30EASY LIQUIDITY 30

TOTAL 100

According, to the data 40% of the people say they invest in stocks giving high return or maximum return.

3. Which kind of services are you getting through brokers ?

46

SERVICE INVESTORS %ONLINE FACILITY 30

INTERDEPOSITARY FACILITY

20

BROKERAGE REDUCTION

20

AMC REDUCTION 30TOTAL 100

According, to the data most of the people get online facility and AMC reduction .They say that these two facilities are forcing us to remain with the brokers.

8. Are you satisfied with services provided by brokers of Capital Markets?

47

SERVICE %ONLINE FACILITY 40

INTERDEPOSITARY SHARE TRANSFER

17

BROKERAGE REDUCTION

15

AMC REDUCTION 28TOTAL 100

According to the data most of the clients are satisfied with the online facility which they are getting through brokers.40% of the clients are satisfied with the facility.

11. What kind of problems do you face generally while investing in the market?

48

PROBLEM %LACK OF STABILITY 50

COMPETITION 10HIGH BROKERAGE

RATES40

TOTAL 100

According to the data most of the respondents say that due to lack of the stability, they feel some type of instability while investing in the capital market.50% people are concerned with the insecurity problems.

12.What is the mode of your investment in capital market?

MODE %LONG TERM 29

49

SHORT TERM 55INTRADAY 16

TOTAL 100

According to the data almost 55% people say that they believe in short term investment .The reason is that with the help of short term buying –selling, they can earn more profit than investment through other modes.

13. What is the source of your awareness regarding investment in capital stock?

SOURCE %ADDS 7

50

WORD OF MOUTH 40COLD CONVERSING 3PEER GROUPS 50TOTAL 100

According to the data, most of the 50% respondents say that for their self source of awareness regarding capital market is peer groups because they think that their friends are the real source of fluctuation regarding market.

14. Which companies you prefer while investing in capital Markets?

%MNC’C 60

51

NATIONAL COMPANIES

40

TOTAL 100

According to the data, almost 60% of the respondents say that they use to invest in the multinational companies because of high versatility.

15. Are you satisfied with return, you are getting from these companies?

%MNC’S 60

52

NATIONAL COMPANIES

40

TOTAL 100

According to the data, almost 60% people say that they are satisfied with the return they are getting from the multinational companies because of their high return in the market.

FINDINGS

1. . As per the data most persons are aware about the capital market because they are educated and concerned about the world economy

53

2. Most of the respondents are aware of both types of market (NSE and BSE) because they usually invest in both the phases of the market

3. the people say that investment in Securities gives high return or maximum return.

4. 60% people say that they believe in short term investment .The reason is that with the help of short term buying –selling, they can earn more profit

5. Most of the investors satisfied with the return they are getting from the multinational companies because of their high return in the market.

RECOMMENDATIONS

54

# Most of the clients are much aware about of the Capital market. So companies should do the work of publicity, so that most of the people can remain in touch with fluctuations of the market.

# Companies should provide extra knowledge about the capital market to the employees, so that the relationship managers can provide good and effective knowledge to the clients.

# Capital market companies can gain an edge over competitors by providing better service after opening up of the Demit account in the concerned company.

# Companies should hold an exercise to educate public about their strengths and how they are different from the competitors.

APPENDICESHello Sir/Madam,

55

We would like to solicit your invaluable input in collecting data towards a

small research. To this end we would be most grateful if you could respond

to a few simple questions. The information provided by you will be kept

completely confidential and used only for our internal research purposes. We

thank you for your kind co-operation.

QUESTIONNAIRE

NAME

AGE

1. To which category do you belong?

( ) Business

( ) Service

( ) Professional

2. Are you aware of Capital markets?

( ) YES

( ) NO

3. Are you investing in Capital market?

( ) YES

( ) NO

4. Which type of market is known to you?

( ) NSE

( ) BSE

( ) BOTH

56

5. Through Which channel you are in touch with Capital market?

( ) BROKER

( ) SUB BROKER

6. Which factor do you consider while investing in Securities?

( ) High return

( ) Quick growth

( ) Easy liquidity

7. Which kind of services are you getting through Brokers?

( ) online facility

( ) Inter-depositary shares transfer facility

( ) Brokerage Reduction

( ) AMC reduction

8. Are you satisfied with the services providing by Brokers?

Highly satisfied Satisfied Moderate Less satisfied

Online shares transfer ( ) ( ) ( ) ( )

Inter-depositary facility ( ) ( ) ( ) ( )

Brokerage reduction ( ) ( ) ( ) ( )

AMC reduction ( ) ( ) ( ) ( )

57

9. Which kind of services are you getting from the sub Brokers?

( ) Online share transfer

( ) Brokerage reduction

( ) AMC reduction

10. Are you satisfied with the services providing by sub Brokers?

Highly satisfied Satisfied Moderate Less satisfied

Inter-depositary facility ( ) ( ) ( ) ( )

Brokerage reduction ( ) ( ) ( ) ( )

AMC reduction ( ) ( ) ( ) ( )

11. What kind of problems do you face generally while investing in market?

High Neutral low

Lack of stability ( ) ( ) ( )

Competition from others ( ) ( ) ( )

High brokerage ( ) ( ) ( )

12. What is the mode of your investment in Capital stock?

More moderate less

Long term ( ) ( ) ( )

Short term ( ) ( ) ( )

Intraday ( ) ( ) ( )

58

13. What is the source of your awareness regarding investment in nifty?

More moderate less

Word of mouth ( ) ( ) ( )

Advertisement ( ) ( ) ( )

Cold conversing ( ) ( ) ( )

Peer groups ( ) ( ) ( )

14. Which companies you prefer while investing in Capital Markets?

( ) MNC’s

( ) National companies

15. Are you satisfied with the return, you are getting form these companies?

MNC’c ( ) ( ) ( ) ( ) ( )

National com. ( ) ( ) ( ) ( ) ( )

LIMITATIONS:

59

1. Customers found it inconvenient to spare time for interview.

2. Higher level of investors were very un-cooperative and did not become part of the interview.

3. Investors were not sure about the questions which I asked them.

4. Due to the nature of the business, they were not available at the house.

5. While every effort was made to get the questionnaire filled personally, even then elements of bias might crept in.

6. Due to loss from the investment, some customers felt upset and did not attend the interview.

BIBLIOGRAPHY

60

BOOKS

Christopher H LoveLock, Lawerence K Wright, “Rosy joshi security

analysis

L.M Prasad portfolio and investment management

Sharma R.K., Gupta Shashi, Singh Jaswant, “banking and Foreign

S. C. Gupta, V. K. Kapoor, “Fundamental of Statistics”, Sultan Chand

and Sons, New Delhi

S. P. Gupta, “Statistical Methods”,Sultan Chand & Sons,NewDelhi.

WEBSITES

www.almondz.com

www.google.com

www.sharemarket.com

http://www.iloveindia.com/finance/bank/private-banks/

sharecapital.html

http://www.iloveindia.com/finance/bank/private-banks/financial

institution -bank.html

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62

63

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