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THE STOCK BROKING IN INDIA The functioning of stock broking in India was started in 1875.

The BSE is oldest stock broking of India. History of Indian stocks trading starts with the 318 person taking membership in Stock Brokers Association and Native Share, which is known by name as Bombay Stock Exchange (BSE). In the year 1965, BSE got a permanent acknowledgment from Government of India which was most required. The National Stock Exchange arrives 2nd to the BSE in the terms of status. NSE a nd BSE represent themselves as the synonyms of the Indian stock market. History of stock market in India is almost same as history of BSE. An up-beat mood of marketplace was lost abruptly with the Harshad Mehta scam. This came to the public knowledge that Harshad Mehta, who is also called as bigbull and giant of Indian stock market which diverted huge fund from banks by fraudulent means. He also played with millions of shares of many companies. For preventing such frauds, Government formed SEBI, through Act in 1992. The SEBI is statutory body which regulates and controls functioning of brokers, stoc k exchanges, portfolio manager investment advisors, sub-brokers, etc. SEBI obliged several tough measures to protect interest of investor. Now with inception of th e online trade and every day settlements chances for fraud are nil, top official o f SEBI says. Sensex crossed 5000 mark in year 1999 and 6000 mark in year 2000. Foreign institutional investor (FII) is investing in stock markets in India on very larg e scale. Liberal economic policies pursue by successive Government attracted many foreign institutional investors towards large scale. The impulsive behavior and action o f market dedicated it tag - 'volatile market.' The factors which affected market i n past were the good monsoon, rise to power of Bharatiya Janatha Party's etc. The resul t of cricket matches between Pakistan and India also affected movements of stock broking in India. National Democratic Alliance which was led by BJP, in 2004 the public election unsuccessfully tried for riding on market sentiment to power. ND A is voted out of the power and sensex recorded biggest fall in day amidst fears w hich Congress-Communist coalitions would have stall economic reform. India, after US hosts the large number of the listed companies. The Global inves tors now seek India as preferred location for the investment. Stock market now also appeals to the middle class Indians. Most of the Indian working in foreign country now diverts their savings to the stocks. This new phenomenon is result of diminished interest rate from banks and opening of the online trading. Stock brokers based in the India are opening office in different country mainly to cat er needs of the Non Resident Indians. They can sell or buy stocks online while returning from work places. The recent incidents which led to the growing intere sts among all Indian middle class is initial public offer announced by ONGC, Maruti Udyog Limited, Tata Consultancy Services and many big names like such. A bullish run of stock market can associated with steady growth of 6% in GDP, growth of Indian company to MNCs, the large potential of the growth in fields of mass medi

a, telecommunication, education, IT sectors and tourism backed by the economic reforms ensures that the Indian stock market continue its bull run.

India Infoline Ltd BSE: 532636 | NSE: INDIAINFO | ISIN: INE530B01024 Market Cap: [Rs.Cr.] 1,712 | Face Value: [Rs.] 2 Industry: Finance & Investments Discuss this stock Company Profile India Infoline Limited (IIL), incorporated in 18th October of the year 1995 as P robity Research & Services Private Limited at Mumbai. The India Infoline is a on e-stop shop for information, advice as well as transaction execution of financia l services. IIL along-with its subsidiaries caters to entire gamut of financial services including equities and commodities broking, portfolio management, distr ibution of mutual funds, life insurance products, home loans, personal loans, et c. Broking services are offered under the 5paisa brand (offers broking services in the Cash and Derivatives segments of the NSE as well as the Cash segment of t he BSE). The company has proven research capabilities and was rated by the Forbe s as the best of web' and must read for investors'. A network of 758 business lo cations spread over 346 cities across India, facilitates the smooth acquisition and servicing of a large customer base. India Infoline's research is available n ot just over the Internet but also on international wire services like Bloomberg (Code: IILL), Thomson First Call and Internet Securities where it is amongst th e most read Indian brokers. The Company identified the potential of the Internet to cater to a mass retail segment and transformed its business model from provi ding information services to institutional customers to retail customers. Hence IIL launched its Internet portal, www.indiainfoline.com in May of the year 1999 and started providing news and market information, independent research, intervi ews with business leaders and other specialized features. IIL was converted into a Public Limited Company in 28th April of the year 2000 and the name of the Com pany was changed to Probity Research & Services Limited. The name of the company was changed to India Infoline.com Limited in 23rd May of the year 2000. During 23rd March of the year 2001, again the name was changed as India Infoline Limite d. IIL acquired 100% shares of Agri Marketing Services Limited during March of t he year 2000. In the year 2000, IIL leveraged its position as a provider of fina ncial information and analysis by diversifying into transactional services, prim arily for online trading in shares and securities and online as well as offline distribution of personal financial products, like mutual funds and RBI Bonds. Th ese activities are carried on through the wholly owned subsidiaries. The broking service was launched under the brand name of 5paisa through our subsidiary, Ind ia Infoline Securities Private Limited and www.5paisa.com, the e-broking portal, was launched for online trading in June of the year 2000. It combined competiti ve brokerage rates and research, supported by Internet technology. Besides inves tment advice from an experienced team of research analysts, also offer real time stock quotes, market news and price charts with multiple tools for technical an alysis. In December of the year 2000, India Infoline Insurance Services Limited (subsidiary) became a corporate agent for ICICI Prudential Life Insurance Compan

y Limited. In the year 2004, the company launched commodities broking through it s subsidiary India Infoline Commodities Private Limited. Also received a license for Portfolio Management Services from SEBI for broking subsidiary. During the year 2006, the company received the requisite prior approval from The Securities and Exchange Board of India for its proposed merger of India Infoline Securitie s Private Limited (IISPL), a wholly owned subsidiary with itself. It had earlier received in-principle approval from National Stock Exchange and The Stock Excha nge, Mumbai. In January of the year 2007, the company entered into an alliance w ith Bank of Baroda for providing Brokerage Platform, besides research and analys is services to the bank's customers. India Infoline awarded the Best Broker in I ndia' by Finance Asia. This was a result of Finance Asia's annual look at the be st financial services firms in each country around Asia for the period from June 2007 to May 2008. During March of the year 2008, India Infoline's institutional broking arm IIFL, partnered with Auerbach Grayson & Company, Inc., a New York-b ased brokerage firm to offer US investors premium access to investing in India's capital markets. Auerbach Grayson specializes in providing global trade executi on and exclusive research to U.S. institutional investors. As of July 2008, the company received the in-principle approval for the insurance broking licence from IRDA. Board Of Directors

Product Name Unit % of Stock % Cap. Util. Inst. Prod. Cap Prodn Sales Qty Sales (Cr.) Sales (Rs.) / Unit Equity Brokerage & related Inc NA 77.8 0.0 0 0 0 485.68 Distribution Income NA 8.9 0.0 0 0 0 55.41 -

Interest NA 7.0 0.0 0 0 0 43.77 Profit on sale of Investment Rs. 4.5 0.0 0 0 0 28.15 Mutual Funds NA 1.0 0.0 0 0 0 5.99 Dividends Rs. 0.6 0.0 0 0 0 3.68 Merchant Banking Income Rs. 0.2 0.0 0 0 0 1.47 Content Sale NA 0.0 0.0 0 0 0 0.00 Call Centre NA 0.0 0.0 0 0

0 0.00 Royalty NA 0.0 0.0 0 0 0 0.00 Finance Income NA 0.0 0.0 0 0 0 0.00 Online & Other media NA 0.0 0.0 0 0 0 0.00 Client referral fees NA 0.0 0.0 0 0 0 0.00 Software Services NA 0.0 0.0 0 0 0 0.00 -

Key Executives

Balance Sheet (Rs. in Crores)

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