Investpror Behaviour in Stock Market

A
Summer Training Project Report

On
INVESTORS BEHAVIOUR ON STOCK MARKET AT RELIGARE SECURITIES LIMITED
Submitted in partial fulfillment for the award of MBA Degree
(Approved by AICTE, Affiliated to Uttarakhand Technical University and HNB Garhwal University) ACADEMIC SESSION (2008-2010)
Submitted to: Mrs. TWEENA PANDEY
Submitted by:
NADEEM AHMAD
Page 1 of 78 RELIGARE SECURITIES LIMITED
To Whom It May Concern
This is to certify that Mr. Nadeem ahmed, of Uttranchal Institute of Management for the session 2008 2010, has completed the project report titled INVESTORS BEHAVIOUR ON STOCK MARKET AT RELIGARE SECURITIES LIMITED satisfactory and not copied from anywhere to the best of my knowledge. Date: under my supervision, as a part of partial fulfillment for the award of MBA Degree. His report is
Signature
Project Supervisor Ms. Tweena Pandey Lecturer Deptt:- Management UIM, Dehradun
ACKNOWLEDGEMENT
I would like to express my ineptness to Ms.Tweena pandey for her outstanding contribution to my project. She is the figure who has always supported me and encouraged me to work hard. I dont have words to express my gratitude for her guidance, but will always follow her principles. I am thankful to Mr. Abhay Deol & Ms. Esha Ahuja of Religare Securities Limited, for there guidance and precious time at every level of this study. They has been a source of inspiration and a cause of convictions and compulsion. I also thank my friends for their moral support to accomplish the project work. I thank the uttaranchal Institute of Management,dehradun for providing the technical support.
PREFACE
I have a great pleasure in presenting this work as a part of the Two years full time MBA DEGREE PROGRAM. Objective of my work initiated when I came across various discussions in the financial markets. Indian derivatives market is yet to reach its peak level. There is still a lack of knowledge about derivatives, amongst the majority of market players. High degree of volatility in the recent times in the Indian market has led to development of more and more sophisticated Hedging, Speculation and Arbitrage techniques and strategies. These strategies are extensively used by Traders, Risk Managers, and Portfolio Managers.
Objective of this project is to present and analyze various derivative strategies in different market situations for players of different profiles.
The study would facilitate the reader in making sound investment decisions. This would help him choose the right derivatives strategy in different market conditions. This work is intended to be useful for researchers, traders, portfolio managers, financial institutions, mutual funds, corporate and student finance.
CONTENTS
S. No.
1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. 17. 18. 19. 20. 21. 22. 23. Page 5 of 78
TOPICS
Certificate Acknowledgement Preface Abstract Executive Summary Introduction Company Profile Brand Identity Religare Offerings Schemes History Of Stock Market In India Meaning & Importance of Stock Exchange Functions of Stock Market Concept Of Stock Exchange Current Situation Factors Securities Regulation Data Analysis Conclusion Investor Protection Measures Suggestions Bibliography Questionnaire
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1 3 4 6 7 8 11 12 20 25 27 30 32 34 43 44 47 55 62 67 69 70 71 RELIGARE SECURITIES LIMITED
ABSTRACT
This study gives you an overview of the various Capital Market Instruments; with emphasis on the Equity, specially Midcaps and penny stocks whos P/E is lesser. The study throws some light on the overview of the Capital Market in India, as well as the Global Stock Market Scenario. It gives you an Introduction about the Stock Market Introduction and Brokerage firm role in securities Market, various terms used in it and the types of Market Participant, who use these Instruments. The basic purpose of this project is analyze Investors behavior on stock market, and also buying and selling patterns and time for that. However, major volumes are related to Research on some stock strategy in equity selling which is a major part of Equity market. I have dealt every aspect of market from the beginning. Basic purpose of the project is make profits or minimizes losses on equity trading.
EXECUIVE SUMMARY
Capital is the back bone of the industrial development of a country. In fact, capital accumulation and economic growth have a high degree of positive correlation and addition to the stock of capital can provoke and facilities faster rate of growth even under the circumstances which can be described as shortage of capital. High rates of capital formation normally result in the rapid growth of output income and employment. Capital accumulation depends essentially on the high rate of saving. But nearly generation of more saving in itself is not sufficient for the fulfillment of the desire end of rapid industrial growth and resultant economic development. A proper utilization of community saving is a precondition. This requires a well organized capital market. A well organized and effective efficient stock market is the most important factor for the economic development of the country. The stock exchange provide for the inter structural support so vital for the economic democracy along with a planned industrial development. The present project report is an attempt to study the development, rules, laws, price movement and the problem of Indian stock market. Attempt are made to examine and analyze the factors and forces which influence and governs the stock market in general and to provide appropriate suggestion to eliminate problem.
INTRODUCTION
Finance is the lifeblood of every business. Modern money economy is totally based on finance. Finance is needed for the production of goods and services as well as their distribution. A business needs finance to commence its operation, to continue operations and for their expansion and modernization of business. Finance controls the policies , activities and the decision of every business. Sound financial system is as important as marketing of goods. Financing of business is an important function of every business organization,. It involves all those activities, which are concerned with the procurement and utilization of fund. It is the process of 1. Estimating the financial requirement of business 2. Raising adequate fund for profitability, solvency and liquidity 3. Mobilization of savings 4. Administration i.e. optimum utilization of fund 5. Canalization of savings into investment. Thus, it deals with the arrangement of adequate amount of capital to achieve the objective of enterprise. The business can not run efficiently if it doe not have adequate finance to meet his requirement, depending upon business. From whatever source it may meet its requirement: it would fall in either of two categories viz. internal source and external source. Internal source are those, which are available to an enterprise internally and which are under the full control of the company. They may include self financing, reserve, and retained earning. External source are those sources, which are outside the control of the company. They may cover common stock, proffered stock, public deposits and loans. The first requirement of every organization is to have an increase in the volume of real savings for achieving a warranted rate of investment with contain inflation or with relative price stability. The crucial step of mobilization of saving should not be identified with monetary financing of investment. The success of the financial institutions lies in their making available the means to utilize the savings. Although the existence of developed money and capital market and financial intermediaries work as a source for the collection and distribution of investible fund, but they do not reduce the need for real saving .Now almost in each and every country the institutional arrangement for supply of finance have been Page 8 of 78 RELIGARE SECURITIES LIMITED
introduced and are available and a lack if finance is not a very serious hindrance in working as all kind of lenders, borrowers, are being available to solve the problem of finance. It will generate the growth of financial intermediaries and lending institutions. Newly firms have to depend solely on the external source as the internal source are the result of business operation. The raising of funds externally automatically involves the firm in the money in the capital market. These decisions are affected by the cost and availability of alternative sources. There are number of institution and interments available for raising the funds externally. one of these instruments is the common stock, which probably is the most popular and most widely used toll for raising funds. The financial system in an economy plays the crucial role in allocating the ingestible resources to productive uses and thereby accelerates the rate of economic development. It comprises of four principle constituents namely the Financial Market, Financial Institutions, Financial Instruments, Financial services. Financial system refers to a set of complex an closely connected institutions, agents, practices, markets, transactions an claim in economy. Financial institutions are business units, which organize the mobilization of savings and development of credit. These financial institutions offer various financial services. Financial market on other hand is the centers that provide facilities for trading financial claims and services. The participants of these markets are financial institutions, agents, brokers, dealers, lenders and many others. The financial markets serve the economy by creating and transferring the financial assets such as treasury bills, government an corporate securities etc. These Financial markets are classified into: Money markets, capital markets, government securities market, however, all these markets can be grouped under primary as well as secondary market. The primary market deals in new financial securities. Therefore these all also referred to as new issue market. The secondary market deals in trading the securities already existing. The money market meets the working capital needs of a productive unit with short term investments such as bills of exchange, commercial papers, etc. Government securities market meets the short term and medium term needs of the government with its securities like treasury bills, bonds, etc. The capital market however secure the long term needs of the corporate enterprises by facilitating to rise the funds through shares and debentures etc. Therefore the capital market establishes the matching concepts through mobilization of funds Page 9 of 78 RELIGARE SECURITIES LIMITED
from savers who expect appropriate return of there investment, to make use of them for financing their projects and this helps in the pace of economic development. The structure and growth of Indian capital can be examined from the phenomenal growth in infrastructure, volume of capital mobilized, market capitalizations and number of innovative instruments floated during the last four decades. Further, the active role of the regulating bodies an the variety of their guidelines for efficient working of the Indian capital market reveals the direction of growth and its complexity My project title is ROLE OF STOCK EXCHANGE IN ECONOMIC DEVELOPMENT. I did my summer training in Religare securities limited. The objectives of choosing this project are:1. understand the concept of stock exchange 2. factors affecting the prices of shares 3. find out the problems of stock exchange
COMPANY PROFILE
RELIGARE Securities Ltd. (RSL) is a wholly owned subsidiary of RELIGARE Financial Services Ltd. (FRSL), a Company promoted by the late Dr. Parvinder Singh, Ex-CMD of Ranbaxy Laboratories Ltd. The primary focus of RSL is to cater to services in Capital Market Operations to Institutional Investors. The Company is a member of the National Stock Exchange (NSE) and OTCEI. The growing list of financial institutions with whom RSL is empanelled, as approved Broker is a reflection of the high levels of services maintained by the Company. As on date the Company is empanelled with UTI, IDBI, IFCI, SBI, BOI-MF, Punjab National Bank, PNB-MF, Oriental Insurance, GIC, UTI-Offshore, ICICI Canbank MF, Punjab & Sind Bank, Pioneer ITI, SUN F&C, IDBI Principal, Prudential ICICI, ING Baring and J M Mutual Fund. RELIGARE was founded with the vision of providing integrated financial care driven by the relationship of trust. The bouquet of services offered by RELIGARE includes Broking (Stocks and Commodities), Depository Participant Service, Advisory on Mutual Fund Investments and Portfolio Management Services. RELIGARE is a pioneer in the concept of partnership to reach multiple locations in order to effectively service its large base of individual clients. Besides the reach of RELIGARE, the clients of the company greatly benefit by its strong research capability, which encompasses fundamentals as well as technical.
OUR BRAND IDENTITY
Religare VISION:
HEALTH thru Fortis Healthcare Limited & WEALTH thru Religare Securities Limited.
Name
Religare is a Latin word that translates as 'to bind together'. This name Religare was chosen to reflect the integrated nature of the financial services the company offers. The name is intended to unite and bring together the phenomenon of money and wealth to co-exist and serve the interest of individuals and institutions, alike.
Symbol
The name is paired with the symbol of a four-leaf clover, a rare mutation of the common three-leaf clover. Traditionally, it is considered good fortune to find a four leaf clover as There is only one four-leaf clover for every 10,000 three-leaf clovers found. Each leaf of the four-leaf clover has a special meaning in the sphere of Religare. The first leaf of the clover represents Hope. The aspirations to succeed, The dream of becoming, Of new possibilities. It is the beginning of every step and the foundations on which a person reaches for the stars. The second leaf of the clover represents Trust. The ability to place ones own faith in another, to have a relationship as partners in a team. To accomplish a given goal with the balance that brings satisfaction to all not in the binding but in the bond that is built. The third leaf of the clover represents Care, The secret ingredient that is the cement in every relationship. The truth of feeling that underlines sincerity and the triumph of diligence in every aspect. From it springs true warmth of service and the ability to adapt to evolving environments with consideration to all.
The fourth and final leaf of the clover represents Good Fortune. Signifying that rare ability to meld opportunity and planning with circumstance to generate those often looked for remunerative moments of success. Hope, Trust, Care, Good fortune. All elements perfectly combine in the emblematic and rare, four-leaf clover to visually symbolize the values that bind together and form the core of the Religare vision
GROUP
RELIGARE in recent years has expanded its reach in financial services wherein it has multiple financial services such as secondary market equity services, portfolio management services, depository services etc. RELIGARE financial services group comprises of Fortis Securities Limited, RELIGARE Comdex Limited and RELIGARE Finevest Limited which provide services in Equity, Commodity and Financial Services business.
RELIGARE SECURITIES LIMITED

1. 2. 3. Member of National Stock Exchange of India and Bombay Stock Exchange of India. Depository Participant with National Securities Depository Limited (NSDL) and Central Depository Services Limited(CDSL). A SEBI approved Portfolio Manager. RSL provides platform to all segments of the investor to leverage the immense opportunity offered by equity investing in India either on their own or through managed funds in Portfolio Management.
RELIGARE Comdex Limited

Member of National Commodity Derivative Exchange and Multi Commodity Exchange FCL provides platform to both agro and non agro commodity traders to derive the actual price of the commodity and also to trade and hedge actively in the growing commodity trading market in India.
RELIGARE invest Limited

A RBI approved Non-banking finance company. RFL provides fund based financial services such as loan against shares, IPO financing and other allied services. RELIGARE is a truly professional corporate backed financial service provider with very sound financial base and backing. RELIGARE is managed by team of highly skilled professional who have proven track record in their respective domains. RELIGARE has the widest reach in India through its Regional, Zonal and Branch Offices spread across the country
Product & Services

Equity Trading Derivative Trading Commodity Trading Depository Services Margin Financing NRI Desk Management Private Client Management Research & Technical Analysis Portfolio Management Services
BUSINESS & OPERATIONS BUSINESS

Over a period of time RSL has recorded a healthy growth rate both in business volumes and profitability as it is one of the major players in this line of business. The business thrust has been mainly in the development of business from Financial Institutions, Mutual Funds and Corporate.
OPERATIONS
The operations of the company are broadly organized along the following functions. Research & Analysis This group is focused on doing daily stock picks and periodical scrip segment specific research. They provide the best of analysis in the industry and are valued by both our Institutional and Retail clientele.
Marketing
This group is focused on tracking potential business opportunities and converting them into business relationships. Evaluating the needs of the clients and tailoring products to meet their specific requirements helps the company to build lasting relationships.
Dealing
Enabling the clients to procure the best rates on their transactions is the core function of this group.
Back Office
This group ensures timely deliveries of securities traded, liaison with stock exchange authorities on operational matters, statutory compliance, handling tasks like pay-in, pay-out, etc. This section is fully automated to enable the staff to focus on the technicalities of securities trading and is manned by professionals having long experience in the field.
Portfolio Management Services

To achieve the vision of being a financial care partner PMS division is being created: Dedicated attention High Service Standards Information Sharing Exclusively focused on Private Clients Choice of Multiple Products
Key Features:
Professional Approach Continuous portfolio monitoring Regular Updates No Cross subsidization of costs Transparency Performance linked fee Lower Expenses Recent Tax changes Very Attractive
INFRASTRUCTURE Offices
The company has offices located at prime locations in Mumbai, New Delhi, Kolkata and Chennai. The offices are centrally located to cater to the requirements of institutional and corporate clients and retails clients, and for ease of operations due to proximity to stock exchanges and banks.
Communications
The companies has its disposal an efficient network of advance communication system and intend to install CRM facility, besides this it is implementing interactive client information dissemination system which enables clients to view their latest client information on web. It has an installed multiple WAN to interconnect the branches to Communicate on real time basis. The company is equipped with most advanced systems to facilitate smooth functioning of operations. It has installed its major application on IBM machines and uses latest state of art financial software.
MANAGEMENT
Mr. Sunil Godhwani is Chief Executive Officer and Managing Director of RELIGARE Securities Limited. He is also the CEO & MD of the parent company RELIGARE Financial Services Limited and is managing the entire operations of both the companies. CEO is supported by various HODs who are creditable professional of their respective fields and they are further working with team of professionals consisting of Chartered Accountants, MBAs with varied experience in financial services and stock broking functions.
Corporate Structure
Our organization is led by individuals who are professionals and leaders in every sense of the word. Experts in their respective domains, esteem members of our Board of Directors are:

Mr. Malvinder Mohan Singh - Chairman (Non Executive) Mr. Sunil Godhwani - CEO & Managing Director Mr. Shivinder Mohan Singh - Non Executive Director Mr. Harpal Singh - Non Executive Director Mr.Deepak Ramchand Sabnani - Independent Director Mr.Padam Bahl - Independent Director Mr.J.W. Balani - Independent Director Mr. Baldev Singh Johal - Independent Director Mr. R. K. Shetty - Alternate to Mr. J. W. Balani Capt.G.P.S.Bhalla - Alternate to Mr. Deepak Sabnani
DEPOSITORY PARTICIPANT SERVICES

RELIGARE Securities Ltd. has also ventured into depository services to cater to its clients and is among leading depository services providers having more than 3000 Crore worth of security under its custody. Why should you choose RSL as your financial partner? A summary of our competitive advantages Page 17 of 78 RELIGARE SECURITIES LIMITED
1. Participant on the countrys premier exchange : RELIGARE is a member of the countrys premier stock exchange The National Stock Exchange of India (NSE). 2. Clearing membership on Capital & Derivatives segments : It has clearing memberships on both the Capital Market and Derivatives segment of the exchange. We are also authorized to trade the retail debt market. 3. Depository Participants with NSDL & CDSL : We are depository participants with the countrys premier depository service - National Securities Depository Limited (NSDL), as well as with the only other depository with a countrywide reach - Central Depository Services Limited (CDSL). 4. Leading private sector bank as partner: Our banking partner is HDFC Bank The foremost private sector bank in the country, which has the most technologically advanced infrastructure in the country, with Internet banking allowing access to information 24 X 7. 5. Bloomberg Information Services: The worlds two best information services are Bloomberg LP and Reuters. These are prohibitively expensive for all but mutual funds and financial institutions to own terminals of, and subscribe to. We however have two connections to the Bloomberg Information Service, the premier service, both in Delhi and Mumbai, and these provide us information ahead of the general public, and at par with the financial institutions. Access to breaking news from across the globe, and across asset classes, and superior research and analysis capabilities. 6. Prime Office Locations: We have prime office locations in the nations political capital and the business capital Delhi and Mumbai, in the heart of the city. 7. Research Capabilities: We have a dedicated team of analysts in our Bombay office They provide fundamental analysis of stocks and markets, which are fundamentally strong, and provide above market returns to investors, but over a slightly longer time frame Typically 6 months and above. 8. Technical Analysis: A daily technical newsletter is published by our in-house technical analyst, who is a recognized leading practitioner of the science. He has a
success rate of over 73%. He tracks the progress of the calls on a real-time basis, and advises of any change in the profit points or stop loss levels.
9. All Services under one roof: India has moved to a T+2 settlement system, where all
trades and settled on a rolling basis. However this gives the clients no time to arrange deliveries to their broker, through a separate depository participant. RELIGARE, being a trading-clearing member, as well as a depository participant, allows seamless transfer of securities under the same roof, with minimum delay, and constant monitoring.
OFFERING OF RELIGARE
Portfolio Management Services International Advisory Institutional Broking Services Investment Banking Equity & Derivatives Depository
Depository
RSL provides depository services to investors as a Depository Participant with NSDL and CDSL. The Depository system in India links issuers, Depository Participants, Depositories National Securities Depository Limited (NSDL) and Central Depository Services (India) Limited (CDSL) and clearing houses / clearing Corporation of Stock Exchanges. These facilitate holding of securities in dematerialized form and securities transactions are processed by means of account transfer.
Equity & Derivatives R-ALLY

Trading in Equities with Religare truly empowers you for your investment needs. We ensure you have a superlative trading experience through 1. A highly process driven, diligent approach 2. Powerful Research & Analytics and 3. One of the best in class dealing rooms Further, Religare also has one of the largest retail networks, with its presence in more than 1300 locations across more than 400 towns & cities. This means, you can walk into any of Page 20 of 78 RELIGARE SECURITIES LIMITED
these branches and connect to our highly skilled and dedicated relationship managers to get the best services.
How will we make trading easier and better? Personal Assistance Dedicated Relationship Managers Dedicated dealers who facilitate trading and serve your post trade needs
Research and Advisory

We at Religare believe in providing research services for clients to facilitate their investment decisions, with strict emphasis on self-regulation, avoiding possible conflict of interest in objectivity. Driven by ethical business practices, we keep a hawks eye on the market with consistent tracking of our recommendations to provide our clients suitable & timely insights. The research team at Religare has close to 100 man years of experience & covers a large basket of companies from different categories. Varied Research Products Fundamental research Technical research Daily reports Intra-day trading tech calls Intra-day Derivative calls Directional F&O calls Structured product
Value Adds
Access your ledger balances and account information over internet and at the branch Help Browser and application based platforms can also be made available for equity trading Access to all your accounts through your unique Customer Relationship Number (CRN)
The Religare Edge

Powerful research and analytics supported by a pool of highly skilled research analysts Page 21 of 78 RELIGARE SECURITIES LIMITED
Ethical business practices Offline/Online delivery models Single window for all investment needs through your unique CRN
Institutional Broking Services

The mission of this division is to institutionalize and implement a process driven approach to cater to the needs of leading corporate houses and institutions. The division would like to be seen as a one stop investment gateway and knowledge repository for its clients servicing their unique and sophisticated needs. The division is structured as a separate SBU and is housed out of Mumbai, manned by a small yet fleet footed and extremely skilled group of top notch professionals drawn from the best in the industry. The key highlights of our service platter are:

Highly skilled, dedicated dealing, research and sales teams Dealing capabilities on the NSE, BSE and in the cash and derivatives segment In-depth, detailed and insightful coverage of more than 60 stocks across diverse
Sectors. The sectors covered are FMCG, Hotels, Media, Pharma, and Auto, Cement, Steel pipes, Logistics, Telecom, Construction and much more. Our Current clientele includes some major domestic Mutual Funds, Insurance Companies, Banks and FIIs
International Advisory
International Advisory Fund Management Services (AFMS) - A new horizon for international investments we provide our wealth clients an opportunity to invest in international financial instruments (currently limited to the US). Equities, Mutual Funds and Debts are some of the key instruments available and the clients have the option to choose from various asset allocation modules. Why Invest Overseas? Avenues for enhancing returns, minimizing risk and portfolio diversification RELIGARE SECURITIES LIMITED
Page 22 of 78
Global outreach of opportunities Pre-approved route for resident individuals to invest (Healthy Govt. Patronage and favorable regulatory developments
Investment Banking
We provide innovative, integrated and best-fit solutions to our corporate customers. It is our continuous endeavor to provide value enhancement through diverse financial solutions on an ongoing basis, through offerings like Corporate Debt, Private Equity, IPO, ECB, FCCB, GDR/ADR etc. Investment Banking with Religare offers the following services:
Corporate Finance
We focus on finding right and relevant partners for our clients, who not only help in adding value but also improve the future valuation of the organization. We specialize in structured financing and providing advisory services related to financial planning, modeling and advising on financial requirements. Corporate finance products offered by us: Placement of Debt Syndication of Domestic Loan / Foreign Currency Loan Securitization Debt Swap & Loan Restructuring Short Term Corporate Debt Working Capital (Cash Credit & Short term Loan) Capital Market Instruments Overseas Acquisition Placement of Equity (Private Equity) Both for listed and unlisted companies
Merchant Banking
IPO/FPO/RIGHTS Page 23 of 78 RELIGARE SECURITIES LIMITED
Mergers & Acquisitions Corporate Advisory Services ADR/GDR/FCCB BUY BACK OF SHARES
Portfolio Management Services (PMS)

Religare offers PMS to address varying investment preferences. As a focused service, PMS pays attention to details, and portfolios are customized to suit the unique requirements of investors. Religare PMS currently extends five portfolio management schemes, viz Panther, Tortoise, Elephant, Caterpillar and Leo. Each scheme is designed keeping in mind the varying tastes, objectives and risk tolerance of our investors
Investment Philosophy
We believe that our investors are better served by a disciplined investment approach, which combines an understanding of the goals and objectives of the investor with a fine tuned strategy backed by research. 1. Stock specific selection procedure based on fundamental research for making sound investment decisions. 2. Focus on minimizing investment risk by following rigorous valuation disciplines. 3. Capital preservation. 4. Selling discipline and use of Derivatives to control volatility. 5. Overall to enhance absolute return for investors.
Schemes Panther
The Panther portfolio aims to achieve higher returns by taking aggressive positions across sectors and market capitalizations. It is suitable for the High Risk High Return investor with a strategy to invest across sectors and take advantage of various market conditions.
Tortoise
The Tortoise portfolio aims to achieve growth in the portfolio value over a period of time by way of careful and judicious investment in fundamentally sound companies having Good prospects. The scheme is suitable for the Medium Risk Medium Return investor with a strategy to invest in companies which have consistency in earnings, growth and financial performance.
Elephant
The Elephant portfolio aims to generate steady returns over a longer period by investing in Securities selected only from BSE 100 and NSE 100 index. This plan is suitable for the Low Risk Low Return investor with a strategy to invest in blue chip companies, as these companies have steady performance and reduce liquidity risk in the market.
Caterpillar
The Caterpillar portfolio aims to achieve capital appreciation over a long period of time by investing in a diversified portfolio. This scheme is suitable for investors with a high risk appetite. The investment strategy would be to invest in scrips which are poised to get a rerating either because of change in business, potential fancy for a particular sector in the Page 25 of 78 RELIGARE SECURITIES LIMITED
coming years/months, business diversification leading to a better operating performance, stocks in their early stages of an upturn or for those which are in sectors currently ignored by the market.
Leo
Leo is aimed at retail customers and structured to provide medium to long-term capital appreciation by investing in stocks across the market capitalization range. This scheme is a mix of moderate and aggressive investment strategies. Its aim is to have a balanced portfolio comprising selected investments from both Tortoise and Panther. Exposure to Derivatives are taken within permissible regulatory limits.
The Religare Edge

We serve you with a diligent, transparent & process driven approach and ensure that your money gets the care it deserves. No experts, only expertise. PMS brought to you by Religare with its solid reputation of an ethical and scientific approach to financial management. While we offer you the services of a Dedicated Relationship Manager who is at your service 24x7, we do not depend on individual expertise alone. For you, this means lower risk, higher dependability and unhindered continuity. Moreover, you are not limited by a particular individuals investment style. No hidden profits. We ensure that a part of the broking at Religare Portfolio Management Services is through external broking houses. This means that your portfolio is not churned needlessly. Using more broking firms gives us access to a larger number of reports and analysis, enabling us to make better, more informed decisions. Furthermore, your portfolio is customized to suit your investment objectives. Daily disclosures, Religare Portfolio Management Services give you daily updates on your investment. You can pinpoint where your money is being invested, 24x7, instead of waiting till the end of the month to keep track. No charge till you profit (For Profit Sharing Management Fees only)* .So sure are we of our approach to Portfolio Management that we do not charge you for our services, until your investments start showing profit. With customized investment options Religare Portfolio Management Services invites you to invest across five broad portfolios to suit your investment needs
Stock Market of India Introduction

Stock markets refer to a market place where investors can buy and sell stocks. The price at which each buying and selling transaction takes is determined by the market forces (i.e. demand and supply for a particular stock). In earlier times, buyers and sellers used to assemble at stock exchanges to make a transaction but now with the dawn of IT, most of the operations are done Electronically and the stock markets have become almost paperless. Now investors dont have to gather at the Exchanges, and can trade freely from their home or office over the phone or through Internet.
History of the Indian Stock Market The Origin

One of the oldest stock markets in Asia, the Indian Stock Markets have a 200 years old history 18th Century 1830's 1840's 1850's 1860's 1860-61 Page 27 of 78 RELIGARE SECURITIES LIMITED East India Company was the dominant institution and by end of the century, business in its loan securities gained full momentum Business on corporate stocks and shares in Bank and Cotton presses started in Bombay. Trading list by the end of 1839 got broader Recognition from banks and merchants to about half a dozen brokers Rapid development of commercial enterprise saw brokerage business attracting more people into the business The number of brokers increased to 60 The American Civil War broke out which caused a stoppage of cotton supply
from United States of America; marking the beginning of the "Share Mania" in India 1862-63 1865 The number of brokers increased to about 200 to 250 A disastrous slump began at the end of the American Civil War (as an example, Bank of Bombay Share which had touched Rs. 2850 could only be sold at Rs. 87)
Pre-Independence Scenario - Establishment of Different Stock Exchanges

1874 With the rapidly developing share trading business, brokers used to gather at a street (now well known as "Dalal Street") for the purpose of transacting business. "The Native Share and Stock Brokers' Association" (also known as "The Bombay Stock Exchange") was established in Bombay Development of cotton mills industry and set up of many others Establishment of "The Ahmedabad Share and Stock Brokers' Association" Sharp increase in share prices of jute industries in 1870's was followed by a boom in tea stocks and coal "The Calcutta Stock Exchange Association" was formed Madras witnessed boom and business at "The Madras Stock Exchange" was transacted with 100 brokers. When recession followed, number of brokers came down to 3 and the Exchange was closed down Establishment of the Lahore Stock Exchange Merger of the Lahoe Stock Exchange with the Punjab Stock Exchange Re-organization and set up of the Madras Stock Exchange Limited (Pvt.) Limited led by improvement in stock market activities in South India with establishment of new textile mills and plantation companies Uttar Pradesh Stock Exchange Limited and Nagpur Stock Exchange Limited was established Establishment of "The Hyderabad Stock Exchange Limited" "Delhi Stock and Share Brokers' Association Limited" and "The Delhi Stocks and Shares Exchange Limited" were established and later on merged into "The Delhi Stock Exchange Association Limited"
1875 1880's 1894 1880 90's 1908 1920 1923 1934 1936 1937
1940 1944 1947
Post Independence Scenario

The depression witnessed after the Independence led to closure of a lot of exchanges in the country. Lahore Stock Exchange was closed down after the partition of India, and later on merged with the Delhi Stock Exchange. Bangalore Stock Exchange Limited was
registered in 1957 and got recognition only by 1963. Most of the other Exchanges were in a miserable state till 1957 when they applied for recognition under Securities Contracts (Regulations) Act, 1956. The Exchanges that were recognized under the Act were 1. Bombay 2. Calcutta 3. Madras 4. Ahmedabad 5. Delhi 6. Hyderabad 7. Bangalore 8. Indore At present, there are twenty one recognized stock exchanges in India which does not include the Over The Counter Exchange of India Limited (OTCEI) and the National Stock Exchange of India Limited (NSEIL). Government policies during 1980's also played a vital role in the development of the Indian Stock Markets. There was a sharp increase in number of Exchanges, listed companies as well as their capital, which is visible from the following table 1 S. No. As on 31st December 9 4 6 1 No. of Stock 7 1 2 No. of Listed Cos. 1 2 5 1 3 No. of Stock Issues of Listed Cos. 5 0 6 Page 29 of 78 RELIGARE SECURITIES LIMITED 1 9 6 1 7 1 2 0 3 2 1 1 1 1 9 7 1 8 1 5 9 9 2 8 3 8 1 9 7 5 8 1 5 5 2 3 2 3 0 1 9 8 0 9 2 2 6 5 3 6 9 7 1 9 8 5 1 4 4 3 4 4 6 1 7 4 89 67 11 78 4 62 29 85 93 20 22 19 91 19 95
Exchanges
Capital of Listed Cos. (Cr. Rs.)
2 7 0
7 5 3 1 2 9 2 6 3 1 0 7 1 7 0
1 8 1 2 2 6 7 5 1 1 3 1 6 7 1 4 8
2 6 1 4 3 2 7 3 1 6 8 2 1 1 1 2 6
3 9 7 3 6 7 5 0 1 7 5 2 9 8 1 7 0
9 7 2 3 2 5 3 0 2 2 2 4 5 8 2 2 6 0
32 04 1
59 58 3
Market value of Capital of Listed Cos. (Cr. Rs.)
9 7 1
11 02 79
47 81 21
Capital per Listed Cos. (4/2) (Lakh Rs.) Market Value of
2 4 8 6 3 5 8
51 4 17 70 34 4
69 3 55 64 80 3
Capital per Listed Cos. (Lakh Rs.) (5/2) Appreciated value of
Capital per Listed Cos. (Lak Rs.)
MENAING AND IMPORTANCE OF THE STOCK EXCHANGE
According to section 2(j) of the securities contract regulations act, 1956 stock exchange means a body of individuals whether incorporated or not, constituted for the purpose of assisting, regulating or controlling the business of buying, selling or dealing in securities. A stock exchange is the central place or market where industrial securities are bought and sold under a code of rules and regulations. A stock exchange is a place where anybody who wants to buy particular securities can find an immediate seller or anybody who wants to sell his holding can find a buyer at reasonable and fair price. Some economist considers them as
economic barometer. Really these can be defined in between two ideologies. It Bismarck and sold for either investment with the following features:1. 2. 3. 4. Organized market: A stock exchange is the well established and properly organized Authorized member: Every stock exchange has its authorized members who deal in Rules and Regulations: A stock exchange is a market where securities are bought and Sales and Purchase of securities: the stock exchange is a market for the purchase and A stock exchange is an integral part of the capital market of any country. No doubt. Neither any industry can not be successfully established nor can flourish without sufficient capital. The stock exchange plays a very vital in providing capital resources to the newly established industrial undertaking which is very essential for the economic development of the country. It is a public institution whose functioning is the major concern for many segment of national life. It is expected to accelerate the progress of economic growth. It acts as the barometer for the general of the country. Stock Exchange creates the habits of saving , investing and risk taking among the member of the general public. This habits leads to investment of funds in corporate and government securities. The fund placed at the disposal of the companies and government is utilized by them for meeting their capital requirement. Thus in my point of view , the stock exchange serve as a mirror which reflect the economic , social and political situation of the country. All investor want capital appreciation coupled with good return but with minimum risk. Stock Exchange assists the investing class in this important task of investing planning. It not only provides the wider and ready market for the securities of the various companies in private sector but also serves as the platform for publics debts and providing finance to PSE and projects of national enterprises. Stock Exchange accelerated economic development, capital formation, and economic growth. They provide capital to industry and commerce and government. They provide wider and ready market for their securities and bargaining power in the event of further expansion and merger. market. securities on behalf of their client. sold under a code of rules and regulations. sell of industrial and financial securities.
FUNCTIONS OF STOCK MARKET

The Stock Exchange creates the habits of saving, investing and risk taking among the masses. This habits leads to investment of funds in corporate and government securities. These funds are utilized by them as per their requirement. Through this they earn profits which increase their publicity. Through the publication of information regarding the new issues and already listed securities, so the Stock Exchange encourages the general public to invest in those companies. A Stock Exchange is an organized ready and continuous market to deal in securities. It is the axle on which whole financial structure of capitalistic system turns. It provides increased liquidity and better marketability for securities, and thus increases flow of capital. The easy Page 32 of 78 RELIGARE SECURITIES LIMITED
marketability of shares and other securities also increases the value of investment as securities of any loans he may like to obtain. The creditors know the real position of his securities. Stock Exchange provide safety and equity of dealings by making judicious selections of members, strict requirement of listing privilege only for reputed companies with growth prospects, no unhealthy competition, high standard of commercial honour and integrity, strict rules and regulations to avoid the chance of excessive and unhealthy speculation. Thus the investor feels quite secure while dealing in recognized Stock Exchange. The existing and running business concerns have to secure funds for their development and expansion programs, hence they have to go to the capital market for further issue of share and debentures. Stock Exchange guide the corporate sector regarding the proper timings of new issues It works as a guiding force to the investors. Arrival and maintains of fair prices revealing the real worth of securities due to limitless and free completions in open market, maximum publicity, and constant quotation through press, radio, TV, enlightened and scientific trading and market operation in full public view the timely publication of price list and market report guide and enlightened the investing community for their betterment. When the security of a company is being sold above the face value for a long time it indicates the good prospects for the company. The public will neutrally be attracted towards such a company and it can easily raise fund. The securities of less prosperous concerns may be sold by the investors in favour of the more profitable concerns. The Stock Exchange provides opportunities to shrewd businessmen to speculate and reap profit from fluctuations in security prices. Due to speculation the supply of securities at different places may be equalized with demand. Stock Exchange act as link between the various capital raising concerns and numerous investors since they attract and encourage both the parties and provides the centralized market for the securities. The major functions of stock exchange are as follow: Mobilizing capital Creation of liquidity and marketability Ensuring price continuity Providing faithful market quotation RELIGARE SECURITIES LIMITED
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Furnishing stock of index Open market appraisal of securities Providing healthy speculation Maintaining profitability Evaluation of corporate standards Providing a seasoning ground for new issue Facilitating distribution of new issue
CONCEPT OF STOCK EXCHANGE

Stock exchange as an organized security market provides marketability and price continuity for shares and helps in a fair evaluation of securities in terms of their intrinsic worth. Thus it helps orderly flow and distribution of savings between different types of investments. This institution performs an important part in the economic life of a country, acting as a free market for securities where prices are determined by the forces of supply and demand. Apart from the above basic function it also assists in mobilizing funds for the Government and the Industry and to supply a channel for the investment of savings in the performance of its functions. Page 34 of 78 RELIGARE SECURITIES LIMITED
The Stock Exchanges in India as elsewhere have a vital role to play in the development of the country in general and industrial growth of companies in the private sector in particular and helps the Government to raise internal resources for the implementation of various development programmers in the public sector. As a segment of the capital market it performs an important function in mobilizing and channelising resources which remain otherwise scattered. Thus the Stock Exchanges tap the new resources and stimulate a broad based investment in the capital structure of industries. A well developed and healthy stock exchange can be and should be an important institution in building up a property base along with a socialist in India with broader distribution of wealth and income. Thus Stock Exchange is a vital organ in a modern society. Without a stock exchange a modern democratic economy cannot exist. The system of joint stock companies financed through the public investment as emerged has put the vast means of finances almost to entrepreneurs needs. Finance from external sources mainly from the investing public can become possible only when an institute like Stock Exchange provides opportunities for the conversion of scattered savings into profitable investments with the promises of a reasonable yield and minimum element of risk. Such a mechanism as provided by Stock Exchanges is not merely a source of capital but also a conduit which channelises the savings into investment along with a free movement of capital. With the probable exception of a totalitarian state no Government will be able to mobilize resources from the public if the money market in the form of stock exchange does not exist. The Stock Exchange benefits the entire community in a variety of way. It enables the producers to raise capital which directly and indirectly gives gainful employment to millions of people on the one hand and helps consumers to get ;the variety of goods needed by them on the other. It provides opportunities to savers to store the value either as temporary abode of purchasing power or as a permanent abode of purchasing power in the form of financial assets. It also helps the segments of the savers who put their savings in commercial firms and non-banking financial intermediaries because these institutions avail themselves of the services of Stock Exchange to invest the money thus collected. The Stock Exchange comes close enough to a perfectly competitive market allowing the forces of demand and supply a reasonable degree of freedom to operate as Page 35 of 78 RELIGARE SECURITIES LIMITED
compared to other markets specially the commodity markets. This segment of the factor market can be considered as a perfect or a nearly perfect market. Apart from providing a mechanism for transacting business in stock and shares it generates genuine potential for a new entrepreneur to take up initiative in the private sector enterprises and allows the expansion of investing community by offering gainful development of their otherwise sluggish or shy capital. The Stock Exchange must assume the responsibility of protecting the rights of investors specially the small investors in the Joint Stock Companies.
EVOLUTION OF STOCK EXCHANGES IN INDIA

Any attempt at raising the standard of living of the masses must address itself to the task of producing the right quantity of the right types of goods and have them available for consumption at the right time. This requires large-scale production through coordination of activities of hundreds of people under the same roof even when the product is the simplest to make. This, however, calls for raising vast amounts of financial resources for the purpose of acquiring land, buildings and equipments, besides purchasing raw materials and employing labour. No one individual or a small group of individuals is rich enough to provide all the capital required by modern business enterprise and savings of hundreds, if not thousands, of people must be mobilized. Page 36 of 78 RELIGARE SECURITIES LIMITED
The corporate form of organization is well adapted to the task of raising capital from many people. This is done by issuing or offering for sale at cash, different types of securities, that is, shares and bonds, which offer to individual investors a means of productively employing capital/savings suited to his/her needs and temperament. The need for offering for sale different types of securities is obvious. Some people may desire safety of the amount they have invested and a regular income from their investment. To them the corporation or company may offer debenture bonds- a certificate issued under the seal of the company promising a refund of the loan on a specified date and payment of interest at prescribed intervals. Other investors may be willing to commit their savings for an indefinite period of time and to assume greater risk while still desiring safety of capital and stability of income. To them the corporation will sell preference shares. Still other investors may be willing to shoulder the business risk that goes along with the ownership of the business in the hope that the profit realized would be large enough to compensate the greater risk they are assuming. But no one will buy these securities unless there exists an organized market where the holders can dispose of them, should the need arise, and new investors can purchase them. Over the years, such organized markets have come into existence in all democratic and capitalistic countries including India. Such a market is called stock market or a stock exchange in English speaking countries and a 'brouse' in continental Europe. There is, obviously, no need for stock exchange in Communist countries since in such countries all the productive organizations are owned by the government. Organized stock exchange in India is of recent origin. As late as 1933 there were only three stock exchanges one each at Ahmedabad, Bombay and Calcutta, but trading in securities was in vogue much prior to that year. Of course, no one can tell when the first transaction took place, however, it is generally agreed that business in securities had begun as early as the concluding years of the 18 th century, that is, between the years 1790 and 1800 A.D.
Existing structure of the stock exchanges in India

The Act recognizes stock exchanges with different legal structure. Presently the stock exchanges which are recognized under the Securities Contracts (Regulation) Act in India, Page 37 of 78 RELIGARE SECURITIES LIMITED
could be segregated into two broad groups 20 stock exchanges which were set up as companies, either limited by guarantees or by shares, and the 3 stock exchanges which are functioning as associations of persons (AOP) viz. BSE, Ahmedabad Stock Exchange and Indore Stock Exchange. The 20 stock exchanges which are companies are: the stock exchanges of Bangalore, Bhubaneswar, Calcutta, Cochin, Coimbatore, Delhi, Gauhati, Hyderabad, Interconnected SE, Jaipur, Ludhiana, Madras, Magadh, Managalore, NSE, Pune, OTCEI, Saurashtra-Kutch, Uttar Pradesh, and Vadodara. Of these, the stock exchanges of Ahmedabad, Bangalore, BSE, Calcutta, Delhi, Hyderabad, Madhya Pradesh, Madras and Gauhati were given permanent recognition by the Central Government at the time of setting up of these stock exchanges. Apart from NSE, all stock exchanges whether established as corporate bodies or Association of Persons (AOPs), are non-profit making organizations.
POWERS OF STOCK EXCHANGE

The powers of the stock exchange are to be exercised as per provisions in its bye-law. As per SCRA Act any recognized stock exchange may, subject to the previous approval of the[Securities and Exchange Board of India make bye-laws for the regulation and control of contracts. The bye-laws can provide for the exercise of following powers by the stock exchange 1. The opening and closing of markets and the regulation of the hours of trade; 2. Set up a clearing house for the periodical settlement of contracts and differences hereunder, the delivery of and payment for securities, the passing on of delivery orders and the regulation and maintenance of such clearing house; 3. The regulation or prohibition of blank transfers; 4. The regulation, or prohibition of balsa or carry-over facilities; 5. The fixing, altering or postponing of days for settlements; 6. The determination and declaration of market rates, including The opening, closing, highest and lowest rates for securities; 7. The terms, conditions and incidents of contracts, including the prescription of margin requirements, if any, and conditions relating thereto, and the forms of contracts in writing; 8. The regulation of the entering into, making, performance, rescission and termination, of contracts, including contracts between members or between a member and his constituent or between a member and a person who is not a member, and the consequences of default or Page 38 of 78 RELIGARE SECURITIES LIMITED
insolvency on the part of a seller or buyer or intermediary, the consequences of a breach or omission by a seller or buyer, and the responsibility of members who are not parties to such contracts; 9. The regulation of taravani business including the placing of limitations thereon; 10. The listing of securities on the stock exchange, the inclusion of any security for the purpose of dealings and the suspension or withdrawal of any such securities, and the suspension or prohibition of trading in any specified securities; 11. The method and procedure for the settlement of claims or disputes, including settlement by arbitration; 12. The levy and recovery of fees, fines and penalties 13. The regulation of the course of business between parties to contracts in any capacity; 14. The exercise of powers in emergencies in trade (which may arise, whether as a result of pool or syndicated operations or cornering or otherwise) including the power to fix maximum and minimum prices for securities; 15. The regulation of dealings by members for their own account; 16. The separation of the functions of jobbers and brokers; 17. The limitations on the volume of trade done by any individual member in exceptional circumstances; 18. Fixing the obligation of members to supply such information or explanation and to produce such documents relating to the business as the governing body may required
Role of Stock Exchange in the Development of Indian Capital Market

Capital occupies a position so dominant to the economic theory of production and distribution that it is natural to assume that it should occupy at least an equally important place in the theory and practice of economic growth. The subject whether approached historically or analytically or from the standpoint of policy, it is the process of capital accumulation that occupies the front of the stage. It is usually implied that economic growth and capital accumulation with a high positive and significant correlation and additions to the stock of capital can provoke and facilitate faster rate of growth even under the circumstances which can be described as shortage of capital.
The aforesaid correlation between the process of economic growth and capital accumulation inspired the earlier theorists of economic development and even in the works of modern economists output is still assumed to be limited by capital whether there is abundant labour or not. A high rate of capital formation usually results in rapid growth in the production and income, but more capital formation by itself will not bring a corresponding acceleration in the growth of production. It also depends to a large extent on the manner in which the capital is utilized. Capital market means the market for all the financial instruments, short term and long term as also commercial, industrial and government paper. The capital market deals with capital. The capital market is a market where borrowing and lending of long term funds takes place. Capital markets deal in both debt and equity. The governments both central and state raise money in the capital market, through the issue of government securities. Capital markets refer to all the institutes and mechanisms of raising medium and long-term funds, through various instruments available like shares, debentures, bonds etc. Corporate both in the private sector as well as in the public sector raise thousands of crores of rupees in these markets. The government, through Reserve Bank of India, as well as financial institutions also raises a lot of money from these markets. Example of well-developed markets is The Global depository and American depository. There are two important operation carried on in these markets: 1. The raising the new capital 2. Trading in securities already issued by the companies. The important constituents of the capital market are: 1. The stock exchanges 2. Banks 3. The investment trusts and companies 4. Specialized financial institutions or development banks. Page 40 of 78 RELIGARE SECURITIES LIMITED
5. Mutual funds 6. Post office saving banks 7. Non banking financial institutions 8. International financial investors and institutions. The supply in this market comes from saving from different sectors of the economy. These come from the following sources: 1. Individuals 2. Corporate 3. Governments 4. Foreign countries 5. Banks 6. Provident funds 7. Financial institutions. Moreover the establishment of National Stock Exchange and Bombay Stock Exchange has been turning point in the working of capital markets. Recently the RBI has allowed participation of individuals in the government securities markets. This move is likely to open new avenues for investment to individuals. Moreover the Finance Ministry has announced the removal of income tax on dividend in the hands of the receiver and no capital gains tax on investments made in equity after 1.3.03 and held for one year To conclude we can say that India has a long tradition of functioning capital markets. The process of reform of capital markets started in 1992 and aimed at removing direct government control and replacing it by a regulatory framework based on transparency and disclosure. The first step was taken in 1992 when SEBI was elevated to a full-fledged capital market regulator. An important policy initiative in 1993 was the opening of capital markets Page 41 of 78 RELIGARE SECURITIES LIMITED
for foreign institutional investors and allowing Indian companies to raise capital abroad. FII registrations in the country have gone up significantly over the years. The number of registered FIIs has gone up from 823 in December 2005 to 972 in October 2006. FIIs had made $10.7 billion worth of investment (Rs 47,181 crore) in calendar 2005. The FIIs have been rewarded well by attractive valuations and increasing returns. The depository and share dematerialization systems have been introduced to enhance the efficiency of the transaction cycle. A number of significant reforms have been implemented in the spot equity and related exchange traded derivatives markets since the early 1990s. For instance, spot prices are mostly market-determined, trading volumes in the derivatives market exceed those in spot markets and market practices such as speed of settlement and dematerialization are close to international best practices. As we can see that the stock exchange is now seen increasingly for what it really is, namely an essential financial infrastructure for any economy. It is this view of the exchange as infrastructure that motivated the Indian government to encourage the establishment of the National Stock Exchange of India at Mumbai, which in a few short years completely revolutionized the Indian capital market. The transparency of the price discovery process which results, especially in technology driven stock exchanges encourages participation in economic activity and enhances the efficient utilization of resources. In addition, the stock market is increasingly perceived as an electronic marketplace for buyers and sellers of securities to transact their business, under the full view of observers
CURRENT SITUATION
Many more stock exchanges were established
Bombay Stock Exchange National Stock Exchange Ahmedabad Stock Exchange Bangalore Stock Exchange Bhubaneshwar Stock Exchange Calcutta Stock Exchange Cochin Stock Exchange Coimbatore Stock Exchange Delhi Stock Exchange Guwahati Stock Exchange
Hyderabad Stock Exchange Jaipur Stock Exchange Ludhiana Stock Exchange Madhya Pradesh Stock Exchange Madras Stock Exchange Magadh Stock Exchange Mangalore Stock Exchange Meerut Stock Exchange OTC Exchange Of India Pune Stock Exchange Saurashtra Kutch Stock Exchange Uttar Pradesh Stock Exchange Vadodara Stock Exchange
FACTORS
ECONOMIC AND POLITICAL FACTORS

In an economy like India, which is committed to democratic socialism, planned development and state control through regulation, the state policy plays a vital role ins tock market. State measures as reflected in legislation, budget, industrial policy, and taxation proposal, custom duties, fiscal policy, are vital important for the stock market.
The liberal scheme for attracting NRI investments in India has resulted in investment in almost all kind of industries. Operators watch the presentation of central budget with great anxiety to know and to see the affect of same on the stock market. The stock market is one of the most politically sensitive markets and political development and change in the political set up affect the share prices. Even a change in the portfolios of the cabinets ministers bring out change in the share prices. Share market is hypersensitive to such change so much so that even a speech by statesmen at the particular time can affect the share prices. So adversely that within a few hours many a number of person concern with the market makes with a huge profits or suffer losses.
PSYCHOLOGICAL FACTORS
Psychological factors of investors play a very vital role in determining the prices of the securities and fluctuation in their prices. For example Hindu operator regards Moorat day as the most auspicious day and any business transacted on that day is regarded as a work of some invisible divine power. The result of that day trading has a psychological effect o their trading in general and governs their operations. While internal factor at the micro level may attempt to pinpoint factors affecting the stock market I the true economic sense that would explain the pattern of the behavior of share prices in general and individual shares in particulars.
MISCELLANEOUS FACTORS
A. DEMAND AND SUPPLY EQULIBIRIUM One of the main factors that bring about short term oscillation in the share prices is the change in the demand and supply of a particular share in the stock. An increase in its demand or decrease in supply would always tend to raise the price and vice versa. Page 45 of 78 RELIGARE SECURITIES LIMITED
B. TECHINCAL MARKET POSITION

Share prices to a very great extent; depend on the technical position of the market. At a particular moment, when share prices in general are stable, but these happens to be a speculative interest in a particular share, its prices are likely to start raising, unless it is counteracted by some other powerful factor, when the market has tendency to rise, a number of bull operators come forward and make purchases in the hope of further rise in the prices, even beyond their capacity, a slight decline in the price would force these operators to sell their share in order limit their losses to an amount. Then are able to bear. Such sales bring about a further depression in prices and when such situations arise, the market is said to be technically weak. Whenever prices have risen to their peak level and the market is not very strong, on slight unfavorable development, the market fall to its bottom. Many times it is expected that a particular happening would push up the prices of a particular shares, but some time when the event actually happens the prices instead of raising falls. In stock market it is a fact that operator are more interested in the anticipation rather then in the real event, it is the thrill of uncertainly that cause the wrangles between bears and bulls.
C. PUBLIC OPINION
Share price movements mainly depend upon public opinion i.e. what people think about the present or future of a particular company. Public opinion is often created by the press publicity. At one time, one scrip is favored; while at another point of time the other. As result of public opinion often there arises a sudden and increase demand for a security, which on account of previous ill favors toughness of the prices have been neglected and this would raise, its price in portion to the new level of demand. Sentiments have an all prevailing influence on the share price movements.
D. WARS AND CRISIS SITUATION

War is mighty upheaval that bring about the changes in all spheres of business activity and share market is not an exception. Share show all round change to a very large extend.
E. SPECULATION
As in the stock market there are three main types of operators which operates the stock market are as bull, bear, and stag. These three are the speculators and control the prices of the securities in the market and divest them as per their choice of and applicability of increase or decrease.
F. WORKING OF FOREIGN INVESTOR

Stock market is not an inland market, but works on the international basis, due to which, the stock and securities traded in are sold and purchased by foreign investor. If the support of foreign investor and institution is good, the price will rise but if they remain inactive and does not makes appropriate purchases, the prices will decline in vice versa.
G.SUPPORT INSTITUTIONS
OF
VARIOUS
GOVERNMENT
FINANCIAL
Our share market is one which moves on the basis the way the government likes. Government has its own various financial institutions bodies which works on behalf of government and regulate the share prices of UTI, IDBI, ICICI etc. there main work is to save the normal investor from the losses arises due to heavy increase or decrease in the prices of securities.
SECURITIES CONTRACTS (REGULATION) ACT, 1956

The Securities Contracts (Regulation) Act, 1956 [SC(R)A] provides for direct and indirect control of virtually all aspects of securities trading and the running of stock exchanges and aims to prevent undesirable transactions in securities. It gives Central Government regulatory jurisdiction over (a) stock exchanges through a process of recognition and continued supervision, (b) contracts in securities, and (c) listing of securities on stock exchanges. All the three are discussed subsequently in this section. The SC(R)A, 1956 was enacted to prevent undesirable transactions in securities by regulating the business of dealing therein and by providing for certain other matters Page 47 of 78 RELIGARE SECURITIES LIMITED
connected therewith. This is the principal Act, which governs the trading of securities in India. As a condition of recognition, a stock exchange complies with conditions prescribed by Central Government. Organised trading activity in securities takes place on a recognised stock exchange.
Recognition of stock exchanges

By virtue of the provisions of the Act, the business of dealing in securities cannot be carried out without a registration from SEBI. Any Stock Exchange which is desirous of being recognised has to make an application under Section 3 of the Act to SEBI, which is empowered to grant recognition and prescribe conditions. This recognition can be withdrawn in the interest of the trade or public. SEBI is authorised to call for periodical returns from the recognised Stock Exchanges and make enquiries in relation to their affairs. Every Stock Exchange is obliged to furnish annual reports to SEBI. Recognised Stock Exchanges are allowed to make bylaws for the regulation and control of contracts but subject to the previous approval of SEBI and SEBI has the power to amend the said bylaws. The Central Government and SEBI have the power to supersede the governing body of any recognised stock exchange.
SECURITIES CONTRACTS (REGULATION) RULES, 1957
The Central Government has made Securities Contracts (Regulation) Rules, 1957, as required by sub-section (3) of the Section 30 of the Securities Contracts (Regulation)Act, 1956 for carrying out the purposes of that Act. Contracts between members of recognised stock exchange All contracts between the members of a recognised stock exchange should be confirmed in writing and should be enforced in accordance with the rules and bye-laws of the stock exchange of which they are members (Rule 9). Page 48 of 78 RELIGARE SECURITIES LIMITED
Maintenance/Preservation of Books of account and other documents 1. Every member of a recognised stock exchange should maintain and preserve the following books of account and documents for a period of five years: (a) Register of transactions (Sauda book). (b) Clients' ledger. (c) General ledger. (d) Journals. (e) Cash book. (f) Bank pass-book. (g) Documents register showing full particulars of shares and securities received and delivered. 2. Every member of a recognised stock exchange should maintain and preserve the following documents for a period of two years: (a) Members' contract books showing details of all contracts entered into by him with other members of the same exchange or counter-foils or duplicates of memos of confirmation issued to such other members. (b) Counter-foils or duplicates of contract notes issued to clients. (c) Written consent of clients in respect of contracts entered into as principals. (Rule 15)
SECURITIES AND EXCHANGE BOARD OF INDIA ACT, 1992

Capital Issues (Control) Act, 1947 The Act had its origin during the war in 1943 when the objective was to channel resources to support the war effort. It was retained with some modifications as a means of controlling the raising of capital by companies and to ensure that national resources were channelled into proper lines, i.e., for desirable purposes to serve goals and priorities of the government, and to protect the interests of investors. Under the Act, any firm wishing to issue securities had to obtain approval from the Central Government, which also Page 49 of 78 RELIGARE SECURITIES LIMITED
determined the amount, type and price of the issue. As a part of the liberalisation process, the Act was repealed in May 1992 paving way for market determined allocation of resources. With this, Governments control over issues of capital, pricing of the issues, fixing of premia and rates of interest on debentures etc. ceased, and the office which administered the Act was abolished: the market was allowed to allocate resources to competing uses. However, to ensure effective regulation of the market, SEBI Act, 1992 was enacted to establish SEBI with statutory powers for (a) protecting the interests of investors in securities, (b) promoting the development of the securities market, and (c) regulating the securities market. It can conduct enquiries, audits and inspection of all concerned and adjudicate offences under the Act. It has powers to register and regulate all market intermediaries and also to penalise them in case of violations of the provisions of the Act, Rules and Regulations made thereunder. SEBI has full autonomy and authority to regulate and develop an orderly securities market. Its regulatory jurisdiction extends over companies listed on Stock Exchanges and companies intending to get their securities listed on any recognised stock exchange in the issuance of securities and transfer of securities, in addition to all intermediaries and persons associated with securities market. SEBI can specify the matters to be disclosed and the standards of disclosure required for the protection of investors in respect of issues; can issue directions to all intermediaries and other persons associated with the securities market in the interest of investors or of orderly development of the securities market; and can conduct enquiries, audits and inspection of all concerned and adjudicate offences under the Act. In short, it has been given necessary autonomy and authority to regulate and develop an orderly securities market. All the intermediaries and persons associated with securities market, viz., stock brokers and sub-brokers, underwriters, merchant bankers, bankers to the issue, share transfer agents and registrars to the issue, depositories, depository participants, portfolio managers, debentures trustees, foreign institutional investors, custodians, venture capital funds, mutual funds, collective investments schemes, credit rating agencies, etc., shall be registered with SEBI and shall be governed by the SEBI Regulations pertaining to respective market intermediary. Constitution of SEBI
The Central Government has constituted a Board by the name of SEBI under Section 3 of SEBI Act. The head office of SEBI is in Mumbai. SEBI may establish offices at other places in India. SEBI consists of the following members, namely: (a) A Chairman (b) Two members from amongst the officials of the Ministry of the Central Government dealing with Finance and administration of the Companies Act, 1956 (c) One member from amongst the officials of the Reserve Bank (d) Five other members of whom at least three should be the whole-time members The general superintendence, direction and management of the affairs of SEBI vests in a Board of Members, which exercises all powers and do all acts and things which may be exercised or done by SEBI. The Chairman and the other members are from amongst the persons of ability, integrity and standing who have shown capacity in dealing with problems relating to securities market or have special knowledge or experience of law, finance, economics, accountancy, administration or in any other discipline which, in the opinion of the Central Government, shall be useful to SEBI. Functions of SEBI According to Section 11 of SEBI Act, 1992, SEBI has been obligated to protect the interests of the investors in securities and to promote the development of and to regulate the securities market by such measures as it thinks fit. The measures may provide for: (a) regulating the business in stock exchanges and any other securities markets; (b) registering and regulating the working of stock brokers, sub-brokers, share transfer agents, bankers to an issue, trustees of trust deeds, registrars to an issue, merchant bankers, underwriters, portfolio managers, investment advisers and such other intermediaries who may be associated with securities markets in any manner; (c) registering and regulating the working of the depositories, participants, custodians of securities, foreign institutional investors, credit rating agencies and such other intermediaries as SEBI may, by notification, specify in this behalf; (d) Registering and regulating the working of venture capital funds and collective investment schemes including mutual funds; (e) Promoting and regulating self-regulatory organisations; (f) Prohibiting fraudulent and unfair trade practices relating to securities markets; (g) Promoting investors' education and training of intermediaries of securities markets; Page 51 of 78 RELIGARE SECURITIES LIMITED
(h) Prohibiting insider trading in securities; (i) Regulating substantial acquisition of shares and take-over of companies; (j) calling for information from, undertaking inspection, conducting inquiries and audits of the stock exchanges, mutual funds, other persons associated with the securities market , intermediaries and self regulatory organizations in the securities market; (k) calling for information and record from any bank or any other authority or board or corporation established or constituted by or under any Central, State or Provincial Act in respect of any transaction in securities which is under investigation or inquiry by the Board; (l) performing such functions and exercising such powers under the provisions of Securities Contracts (Regulation) Act, 1956, as may be delegated to it by the Central Government; (m) levying fees or other charges for carrying out the purpose of this section; (n) conducting research for the above purposes; (o) calling from or furnishing to any such agencies, as may be specified by SEBI, such information as may be considered necessary by it for the efficient discharge of its functions; (p) performing such other functions as may be prescribed. According to Section 11A of SEBI Act, 1992, SEBI may, for the protection of investors, (a) specify, by regulations, (i) the matters relating to issue of capital, transfer of securities and other matters incidental thereto; and (ii) the manner in which such matters, shall be disclosed by the companies (b) by general or special orders, (i) prohibit any company from issuing of prospectus, any offer document, or advertisement soliciting money from the public for the issue of securities, (ii) specify the conditions subject to which the prospectus, such offer document or advertisement, if not prohibited may be issued. (Section 11A). Registration of Intermediaries The intermediaries associated with securities market should buy, sell or deal in securities after obtaining a certificate of registration from SEBI, as required by Section 12: 1) Stock-broker, 2) Sub-broker, Page 52 of 78 RELIGARE SECURITIES LIMITED
3) Share transfer agent, 4) Banker to an issue, 5) Trustee of trust deed, 6) Registrar to an issue, 7) Merchant banker, 8) Underwriter, 9) Portfolio manager, 10) Investment adviser 11) Depository,
12) Depository participant 13) Custodian of securities, 14) Foreign institutional investor, 15) Credit rating agency, 16) Collective investment schemes, 17) Venture capital funds, 18) Mutual funds, and 19) Any other intermediary associated with the securities market.
RESEARCH QUESTIONS
1. How do male and female employees perceptions differ about diversity status?
2. How do male and female employees across categories view employers efforts to promote diversity?
3. How do male and female employees across categories differ on the issues like access to development opportunities, valuing diversity, organizational support, and the competence and productivity of employees?
RESEARCH METHODOLOGY
OBJECTIVES:
Following research question came to my mind to answer these questions following objective and sub objective have been set.
1. To study the impact of gender diversity on innovation in organizational settings.
2. To studies the difference in perception in about diversity status between male and female employees.
3. To understand the difference between male and female employees on the basis of development opportunities , competence and productivity.
RESEARCH DESIGN 1. Selective type of research: Parameters of study: Gender diversity & innovations in organizational settings is to be described. Therefore descriptive research has been selected. 2. Sampling size: No of sample 100 out of total number of universe 500. 4.Sample technique: Proportionate stratified technique. 5. Data requirement: Required information will be gathered in the form of primary data. Page 54 of 78 RELIGARE SECURITIES LIMITED
6. Data collection technique: Questionnaire method will be use. 7. Data collection instrument: Structured questionnaire will be designed 8. Analysis of data: Deductive analysis will be done through suitable statistical technique. 9. Operational methodology: Questionnaire will be handed over to the responded in a face to face interaction & respondent will request to fill in the questionnaire in presence of researcher.
LIMITATION:
1. The sample size was 100, which proved a limitation for me.
2. I had a problem of time because the project was time bounded.
3. This study is based on primary data. So, the probability of personal bias cannot be ruled out.
4. Most of the respondents were not very helpful and since they were not having management qualification. I had to make things understand to them every time. 5. Some women respondents are introvert in nature. So it makes difficult to take suitable feedback from them.
DATA ANALYSIS AND INTERPRETATION

Following are the Questionnaire1. Does organization believe there is advantage in recruiting a gender diverse staff? a.YES b.NO
Advantag e in recrutingg ender diverse s taff

NO 30%
YES 70%
INTERPRETATION: 30% of population interpreted no & 70% of population interpreted that there are advantage in recruiting gender diverse staff.
Yes Male 40 70 female 30
No 10 20 30 50 50 100
Null Hypothesis (Ho): organization believes there is no advantage in recruiting a gender diverse staff. Alternative Hypothesis (H1): organization believes there is an advantage in recruiting a gender diverse staff Level of significance =5% Total number of respondents = (40+30+10+20)=100 Expected frequency=(Ei)= Total number of respondents/no of opinions=1OO/2=50 CHI SQUARE (x2) = [(Oi-Ei) 2/ Ei] Where Oi = Observed frequency Ei = Expected frequency TABLE calculation of 2 Opinion Male who say yes Female who say yes Page 57 of 78 Observed frequency (Oi) Expected frequency (Ei) 40 35 10 15 (Oi-Ei) 5 -5 (Oi-Ei)2 25 25 (Oi-Ei)2/Ei 0.71 1.66
Male who say no Female who say no
30 35 20 15
-5 5
25 25
0.71 1.66 4.74
[(Oi-Ei)2/Ei]= 4.74 Degrees of freedom=(r-1)(c-1)=(2-1)(2-1)=1 The table value of 2 for degree of freedom 1, at 5% level of significance is 3.84 2 computed value = 4.74 We can see that the calculated value is greater than the table value so the null hypothesis will be rejected and the alternative hypothesis will be accepted. 2. Does organization insure that both women and men are in interview panel? a.YES b.NO
B oth wom en and m en in interview panel

NO 20%
YES 80%
INTERPRETATION: 20% of population interpreted no & 80% of population interpreted that both women and men should be in interview panel.
Yes Male 35 female 45

Page 58 of 78
No 15 5 50 50
80
20
100
Null Hypothesis (Ho): both men and women wont be in the interview panel Alternative Hypothesis (H1): both men and women will be in the interview panel Level of significance =5% Total number of respondents = (35+15+45+5)=100 Expected frequency= (Ei)= Total number of respondents/no of opinions=1OO/2=50 CHI SQUARE (x2) = [(Oi-Ei) 2/ Ei] Where Oi = Observed frequency Ei = Expected frequency TABLE calculation of 2 Opinion Male who say yes Female who say yes Male who say no Female who say no Observed frequency (Oi) 35 45 15 5 Expected frequency (Ei) 40 40 10 10 (Oi-Ei) -5 5 5 -5 (Oi-Ei)2 25 25 25 25 (Oi-Ei)2/Ei 0.63 0.63 1.67 5 7.93
[(Oi-Ei)2/Ei]= 7.93 Degrees of freedom=(r-1)(c-1)=(2-1)(2-1)=1 The table value of 2 for degree of freedom 1, at 5% level of significance is 3.84 2 computed value = 7.93 So we can see that the table value is less than the calculated value. So the null hypothesis will be rejected and the alternative hypothesis will be accepted.
3. Does organization ensure that applications from female candidates are actively mobilized? a. Yes b. No c. Sometimes
Applicationfromfem ale candidates are actively m obliz ed

SOMETIMES 10% NO 30%
YES 60%
INTERPRETATION: 30% of population interpreted yes 30% said no & 10%of population interpreted that sometimes the organization ensures that applications from female candidates are actively mobilized.
No 16 14 30
Sometimes 2 8 10 50 50 100
Null Hypothesis (Ho): applications from female candidates are actively mobilized. Alternative Hypothesis (H1): applications from female candidates are not actively mobilized. Level of significance =5% Total number of respondents = (32+28+16+14+2+8)=100 Expected frequency= (Ei)= Total number of respondents/no of opinions=1OO/3=33.33 CHI SQUARE (x2) = [(Oi-Ei) 2/ Ei] Where Oi = Observed frequency Ei = Expected frequency TABLE calculation of 2 Opinion Male who say yes Female who say yes Page 60 of 78 RELIGARE SECURITIES LIMITED Observed frequency (Oi) Expected (Oi-Ei) frequency (Ei) 2 32 30 28 30 -2 (Oi-Ei)2 4 4 (Oi-Ei)2/Ei 0.13 0.13
Male who say no Female who say no Male who say sometimes Female who say sometimes
16 14 2 8
15 15 5 5
1 -1 -3 3
1 1 9 9
0.067 0.067 1.8 1.8 3.994
[(Oi-Ei)2/Ei]= 3.994 Degrees of freedom=(r-1)(c-1)=(3-1)(2-1)=2 The table value of 2 for degree of freedom 2, at 5% level of significance is 5.99 2 computed value = 3.994 So we can see that the table value is less than the calculated value. So the null hypothesis will be rejected and the alternative hypothesis will be accepted. 4. Is organization held accountable for generating gender diverse pool of high quality candidate? a. Yes b. No
Org anisation reponsible for g eneratingg ender diverse pool

NO 33% YES 67%
INTERPRETATION: 33% of population interpreted no & 67% of population interpreted that organization is responsible for generating gender diverse pool.

Page 61 of 78
No 15 18 50 50
67
33
100
Null Hypothesis (Ho): organization is responsible for generating gender diverse pool Alternative Hypothesis (H1): organization is not responsible for generating gender diverse pool Level of significance =5% Total number of respondents = (35+15+32+18)=100 Expected frequency= (Ei) = Total number of respondents/no of opinions=1OO/2=50 CHI SQUARE (x2) = [(Oi-Ei) 2/ Ei] Where Oi = Observed frequency Ei = Expected frequency TABLE calculation of 2 Opinion Male who say yes Female who say yes Male who say no Female who say no Observed frequency (Oi) 35 32 15 18 Expected frequency (Ei) 33.5 33.5 16.5 16.5 (Oi-Ei) 1.5 -1.5 -1.5 1.5 (Oi-Ei)2 2.25 2.25 2.25 2.25 (Oi-Ei)2/Ei 0.07 0.07 0.14 0.14 1.14
[(Oi-Ei)2/Ei]= 1.14 Degrees of freedom=(r-1)(c-1)=(2-1)(2-1)=1 The table value of 2 for degree of freedom 1, at 5% level of significance is 3.84 2 computed value = 1.14
So we can see that the table value is greater than the calculated value. So the null hypothesis will be accepted and the alternative hypothesis will be rejected. 5. Are women represented in the head of the department? a. Yes b. No
W om en representative for H OD
YES 40% NO 60%
INTERPRETATION: 60% of population interpreted no & 40% of population interpreted that there should be women represented in the head of the department.
No 32 28 60 50 50 100
Null Hypothesis (Ho): no women representative for HOD Alternative Hypothesis (H1): women representative for HOD Level of significance =5% Total number of respondents = (18+32+22+28) =100 Expected frequency= (Ei) = Total number of respondents/no of opinions=1OO/2=50 CHI SQUARE (x2) = [(Oi-Ei) 2/ Ei] Where Oi = Observed frequency Ei = Expected frequency TABLE calculation of 2 Opinion Male who say yes Female who say yes Page 63 of 78 RELIGARE SECURITIES LIMITED Observed frequency (Oi) Expected frequency (Ei) 18 20 22 20 (Oi-Ei) -2 2 (Oi-Ei)2 4 4 (Oi-Ei)2/Ei 0.2 0.2
Male who say no Female who say no
32 30 28 30
2 -2
4 4
0.13 0.13 0.66
[(Oi-Ei)2/Ei]= 0.66 Degrees of freedom=(r-1)(c-1)=(2-1)(2-1)=1 The table value of 2 for degree of freedom 1, at 5% level of significance is 3.84 2 computed value = 0.66
So we can see that the table value is greater than the calculated value. So the null hypothesis will be accepted and the alternative hypothesis will be rejected. 6. Does the organization reward people who take initiative for cultural program in the organization? a. Yes b. No
R eward for initiatingin cultural prog ram

NO 35% YES 65%
INTERPRETATION: 35% of population interpreted no & 65% of population interpreted that organization reward people who take initiative for cultural program.
Yes Male
Page 64 of 78
No 17 50
33
female 32 65
18 35
50 100
Null Hypothesis (Ho): organization should reward people who take initiative for cultural program Alternative Hypothesis (H1): organization should not reward people who take initiative for cultural program Level of significance =5% Total number of respondents = (33+32+17+18) =100 Expected frequency= (Ei) = Total number of respondents/no of opinions=1OO/2=50 CHI SQUARE (x2) = [(Oi-Ei) 2/ Ei] Where Oi = Observed frequency Ei = Expected frequency TABLE calculation of 2 Opinion Male who say yes Female who say yes Male who say no Female who say no Observed frequency (Oi) 33 32 17 18 Expected frequency (Ei) 32.5 32.5 17.5 17.5 (Oi-Ei) 0.5 -0.5 -0.5 0.5 (Oi-Ei)2 0.25 0.25 0.25 0.25 (Oi-Ei)2/Ei 0.008 0.008 0.014 0.014 0.044
[(Oi-Ei)2/Ei]= 0.044 Degrees of freedom=(r-1)(c-1)=(2-1)(2-1)=1 The table value of 2 for degree of freedom 1, at 5% level of significance is 3.84 2 computed value = 0.044 So we can see that the table value is greater than the calculated value. So the null hypothesis will be accepted and the alternative hypothesis will be rejected. 7. Does the organization have an adequate maternity leave for birth of a child? a. Yes b. No
Adequatem aternity leave

NO 10%
YES 90%
INTERPRETATION: 10% of population interpreted no & 90% of population interpreted that the organizations have an adequate maternity leave for birth of a child.
No 7 3 10 50 50 100
Null Hypothesis (Ho): organizations have an adequate maternity leave for birth of a child. Alternative Hypothesis (H1): organizations should not have an adequate maternity leave for birth of a child. Level of significance =5% Total number of respondents = (43+47+7+3) =100 Expected frequency= (Ei) = Total number of respondents/no of opinions=1OO/2=50 CHI SQUARE (x2) = [(Oi-Ei) 2/ Ei] Where Oi = Observed frequency Ei = Expected frequency TABLE calculation of 2 Opinion Male who say yes Page 66 of 78 RELIGARE SECURITIES LIMITED Observed frequency (Oi) Expected frequency (Ei) 43 45 (Oi-Ei) -2 (Oi-Ei)2 4 (Oi-Ei)2/Ei 0.09
Female who say yes Male who say no Female who say no
47 45 7 5 3 5
2 2 -2
4 4 4
0.09 0.8 0.8 1.78
[(Oi-Ei)2/Ei]= 1.78 Degrees of freedom=(r-1)(c-1)=(2-1)(2-1)=1 The table value of 2 for degree of freedom 1, at 5% level of significance is 3.84 2 computed value = 1.78 So we can see that the table value is greater than the calculated value. So the null hypothesis will be accepted and the alternative hypothesis will be rejected. 8. Does the organization systematically monitor attrition rates of women and men? a. Yes b. No
A ttrition rate of m en and wom en

YES 45% NO 55%
INTERPRETATION: 55% of population interpreted no & 45% of population interpreted that the organizations systematically monitor attrition rates of women and men.

Page 67 of 78
No 27 28 50 50
45
55
100
Null Hypothesis (Ho): organizations should not systematically monitor the attrition rates of women and men. Alternative Hypothesis (H1): organizations systematically monitor attrition rates of women and men. Level of significance =5% Total number of respondents = (23+22+27+28) =100 Expected frequency= (Ei) = Total number of respondents/no of opinions=1OO/2=50 CHI SQUARE (x2) = [(Oi-Ei) 2/ Ei] Where Oi = Observed frequency Ei = Expected frequency TABLE calculation of 2 Opinion Male who say yes Female who say yes Male who say no Female who say no Observed frequency (Oi) 23 22 27 28 Expected frequency (Ei) 22.5 22.5 27.5 27.5 (Oi-Ei) 0.5 -0.5 -0.5 0.5 (Oi-Ei)2 0.25 0.25 0.25 0.25 (Oi-Ei)2/Ei 0.01 0.01 0.009 0.009 0.038
[(Oi-Ei)2/Ei]= 0.038 Degrees of freedom=(r-1)(c-1)=(2-1)(2-1)=1 The table value of 2 for degree of freedom 1, at 5% level of significance is 3.84 2 computed value = 0.038 So we can see that the table value is greater than the calculated value. So the null hypothesis will be accepted and the alternative hypothesis will be rejected. 9. Does the organization give women equivalent respect, legitimacy and authority as they do for male staff in comparable position? a. Yes b. No
Authority ,respect to wom en

NO 10%
YES 90%
INTERPRETATION: 10% of population interpreted no & 90% of population interpreted that the organizations give women equivalent respect, legitimacy and authority as they do for male staff in comparable position.
No 6 4 10 50 50 100
Null Hypothesis (Ho): organization give women equivalent respect, legitimacy and authority as they do for male staff in comparable position. Alternative Hypothesis (H1): organization not gives women equivalent respect, legitimacy and authority as they do for male staff in comparable position. Level of significance =5% Total number of respondents = (44+46+6+4) =100 Expected frequency= (Ei) = Total number of respondents/no of opinions=1OO/2=50 CHI SQUARE (x2) = [(Oi-Ei) 2/ Ei] Where Oi = Observed frequency Ei = Expected frequency TABLE calculation of 2 Opinion Male who say yes Page 69 of 78 Observed frequency (Oi) Expected frequency (Ei) 44 45 (Oi-Ei) -1 (Oi-Ei)2 1 (Oi-Ei)2/Ei 0.02
Female who say yes Male who say no Female who say no
46 45 6 5 4 5
1 -1 1
1 1 1
0.02 0.2 0.2 0.44
[(Oi-Ei)2/Ei]= 0.44 Degrees of freedom=(r-1)(c-1)= (2-1)(2-1)=1 The table value of 2 for degree of freedom 1, at 5% level of significance is 3.84 2 computed value = 0.44 So we can see that the table value is greater than the calculated value. So the null hypothesis will be accepted and the alternative hypothesis will be rejected.
10. Do the organization take feedback from both women and men on the impact of policy decision and actions? a. Yes b. No
F eedbackfromm en and wom en

NO 15%
YES 85%
INTERPRETATION: 15% of population interpreted no & 85% of population interpreted that the organizations take feedback from both women and men on the impact of policy decision and actions.
Yes
Page 70 of 78
No
Male
42 85
8 7 15
50 50 100
female 43
Null Hypothesis (Ho): Organizations take feedback from both women and men on the impact of policy decision and actions. Alternative Hypothesis (H1): Organizations not take feedback from both women and men on the impact of policy decision and actions. Level of significance =5% Total number of respondents = (42+43+8+7) =100 Expected frequency= (Ei) = Total number of respondents/no of opinions=1OO/2=50 CHI SQUARE (x2) = [(Oi-Ei) 2/ Ei] Where Oi = Observed frequency Ei = Expected frequency TABLE calculation of 2 Opinion Male who say yes Female who say yes Male who say no Female who say no Observed frequency (Oi) 42 43 8 7 Expected frequency (Ei) 42.5 42.5 7.5 7.5 (Oi-Ei) -0.5 0.5 0.5 -0.5 (Oi-Ei)2 0.25 0.25 0.25 0.25 (Oi-Ei)2/Ei 0.006 0.006 0.033 0.033 0.078
[(Oi-Ei)2/Ei]= 0.078 Degrees of freedom=(r-1)(c-1)= (2-1)(2-1)=1 The table value of 2 for degree of freedom 1, at 5% level of significance is 3.84 2 computed value = 0.078 So we can see that the table value is greater than the calculated value. So the null hypothesis will be accepted and the alternative hypothesis will be rejected.
RESEARCH HYPOTHESIS:
Null Hypothesis (Ho): Workforce diversity does not have any significant impact on innovations in terms of organizations strategy building. Page 71 of 78 RELIGARE SECURITIES LIMITED
Alternative Hypothesis (H1): Workforce diversity do have significant impact on innovations in terms of organizations strategy building. Level of significance =5% Total number of respondents = 100 CHI SQUARE (x2) = [(Oi-Ei) 2/ Ei] Where Oi = Observed frequency Ei = Expected frequency TABLE calculation of 2 [(Oi-Ei)2/Ei]= (4.74+7.93+3.99+1.14+0.66+0.04+1.78+0.04+0.44+0.08) =20.84 Degrees of freedom= (10-1) = 9 The table value of 2 for degree of freedom 9, at 5% level of significance is 16.91 2 computed value = 20.84 Thus we can well justify that the table value is less than the calculated value. So, the null hypothesis will be rejected and the alternative hypothesis will be accepted. By the help of findings & interpretation mentioned above, the study results can prove that the workforce diversity do have significant impact on innovations in terms of organizations strategy building.
FINDINGS
1. Men are more dominating than women in class. 2. Women tend to be involved in their personal problem and this is reflected in their behaviour. 3. In most of the questions it is being observed that null hypothesis is being accepted in common, which can help to justify that workforce diversity helps in innovations of organizational setting.
RECOMMENDATIONS
1. Organization should conduct training programs for male and female faculties together so they can able to get a friendly working environment.
2. Women should separate their personal life from professional life.
3. Male should extend their helping hands towards women which should encourage them for better job.
JUSTIFICATION FOR CHOOSING THIS PARTICULAR DISSERTATION

Now in present days in any organization both male and female employees are working. So by he help of this research study we can easily able to find that when any innovation is done in an organization then who can easily able to go through with this innovation process. In many instances, policies of equality and diversity are not the leading principle of these initiatives, but are given equal attention alongside policies designed to manage the creativity and innovation of employees. However, this is precisely the means by which the mainstreaming of equality and diversity management can and should be achieved: by releasing it from the HR departments where it was first recognized and developing diversity strategies within other departments. In so doing, the challenges of negative stereotyping, poor communication, and poor integration are overcome through the development of specific organizational process aimed at providing all employees a space within which their ideas can be shared. Enculturation the suppression of diversity in order to create a homogenous company culture specifically has no place there. Indeed, at both BASF and TMB, innovation initiatives actively sought to increase a heterogeneous company culture through encouraging their employees to risk thinking differently and speaking out
CONCLUSION
The study can be concluded by stating that the training and development sessions should be given due attention by conduct training programs for male and female faculties together so that hesitation can be removed and they can work in friendly environment. And the gender based hesitations (while working together), among most of the male and female faculties can be removed. Further some conclusions are women should keep their personal and professional life separate so that both can be balanced. Male should extend their helping hands towards women so that they will feel motivated. Since the study cannot be constrained within the limit of findings, thus the outcomes of this study can be extended ahead in the hands of future researchers with the same interest so that some more outcomes can also be introduced to discourage the other diverse gender barriers.
REFERENCES:
A. BOOKS: Page 74 of 78 RELIGARE SECURITIES LIMITED
1. Adler, N.J. (1997), International Dimensions of Organizational Behavior , South-Western College Publishing, Cincinnati, OH, 2. Human resource management, V S P RAO, Second Edition, Publisher-EXCEL BOOKS, 2008 3. Human resource management, L M PRASAD, Second Edition, Publisher-Sultan Chand & Sons, 2005 4. Personnel/Human resource management, DAVID A DECENZO & STIFEN P ROBBINS, Third Edition, Publisher- Asoke k. Ghosh, 2007 6. Human resource development and management, A.M. Sheikh, Publisher- S.Chand & Company LTD 7. Human resource development, T V Rao, Publisher- SAGE Publications, 2006 8. Personnel and Human resource management, A.M. Sharma, Fifth Edition, PublisherHimalaya Publishing House, 2005 9. R. M. Wentling, N. Palma-Rivas 10. By Wentling, Rose Mary; Palma-Rivas, Nilda
B. RESEARCH ARTICLES: 1. Defining the Attributes and Processes that Enhance the Effectiveness of Workforce Diversity Initiatives in Knowledge Intensive Firms Modupe N. Akinola David A. Thomas (2008) 2. Ely, R. J. & Thomas, D. A. 2001. Gender diversity at work: The effects of diversity perspectives on work group processes and outcomes. Administrative Science Quarterly, 46(2): 229-273 3. Ibarra, H. 1993. Personal networks of women and minorities in management: A conceptual framework. Academy of Management Review, 18: 56-87. 4. Brass, D. J. 1985. Men's and women's networks: A study of interaction patterns and influence in an organization. Academy of Management Journal, 28: 518-539 C. WEBSITES: 1. http://www.hbs.edu/research/pdf/07-019.pdf 2. http://www.chrmglobal.com/articles/188/1/Managing-Diversity-in-Organization--PartII.html Page 75 of 78 RELIGARE SECURITIES LIMITED
3. http://www.ilr.cornell.edu/library/research/subjectGuides/workplaceDiversity.html 4. http://www.nap.edu/openbook.php?record_id=11679&page=122 5. http://www.technologyevaluation.com/search/for/managing-workforce-diversity.html 6. http://www.thesustainableworkforce.org/index.php/research-outputs/articles?start=60
ANNEXURES
QUESTIONNAIRE:
NAMEGENDER1. Does the organization believe there are advantages in recruiting a gender diverse staff? a.YES Page 77 of 78 RELIGARE SECURITIES LIMITED
b.NO 2. Does organization insure that both women and men are in interview panel? a.YES b.NO 3. Does organization ensure that applications from female candidates are actively mobilized? a. Yes b. No c. Sometimes 4. Is organization held accountable for generating gender diverse pool of high quality candidate? a. Yes b. No 5. Are women represented in the head of the department? a. Yes b. No 6. Does the organization reward people who take initiative for cultural program in the organization? a. Yes b. No 7. Does the organization have an adequate maternity leave for birth of a child? a. Yes b. No 8. Does the organization systematically monitor attrition rates of women and men? a. Yes b. No 9. Does the organization give women equivalent respect, legitimacy and authority as they do for male staff in comparable position? a. Yes b. No 10. Does the organization take feedback from both women and men on the impact of policy decision and actions? a. Yes b. No

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Summer Training Project Report

Submitted to: Mrs. TWEENA PANDEY

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To Whom It May Concern

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OUR BRAND IDENTITY

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RELIGARE SECURITIES LIMITED

RELIGARE Comdex Limited

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RELIGARE invest Limited

Product & Services

BUSINESS & OPERATIONS BUSINESS

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Portfolio Management Services

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DEPOSITORY PARTICIPANT SERVICES

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Equity & Derivatives R-ALLY

Research and Advisory

The Religare Edge

Institutional Broking Services

Portfolio Management Services (PMS)

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The Religare Edge

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Stock Market of India Introduction

History of the Indian Stock Market The Origin

Pre-Independence Scenario - Establishment of Different Stock Exchanges

1940 1944 1947

Post Independence Scenario

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Capital of Listed Cos. (Cr. Rs.)

Market value of Capital of Listed Cos. (Cr. Rs.)

Capital per Listed Cos. (4/2) (Lakh Rs.) Market Value of

Capital per Listed Cos. (Lakh Rs.) (5/2) Appreciated value of

Capital per Listed Cos. (Lak Rs.)

MENAING AND IMPORTANCE OF THE STOCK EXCHANGE

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FUNCTIONS OF STOCK MARKET

CONCEPT OF STOCK EXCHANGE

EVOLUTION OF STOCK EXCHANGES IN INDIA

Existing structure of the stock exchanges in India

POWERS OF STOCK EXCHANGE

Role of Stock Exchange in the Development of Indian Capital Market

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ECONOMIC AND POLITICAL FACTORS

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B. TECHINCAL MARKET POSITION

D. WARS AND CRISIS SITUATION

F. WORKING OF FOREIGN INVESTOR

SECURITIES CONTRACTS (REGULATION) ACT, 1956