Currency derivatives

INTRODUCTION
Definitions
Each country has its own currency through which both national and international transactions are performed. All the international business transactions involve an exchange of one currency for another

Scope of the study

The study can help in analyzing Growth in currency derivatves. Companies are looking to get a competitive edge Quick returns are possible for short term profits in currency derivatives Future growth of currency derivatives

OBJECTIVES OF STUDY OBJECTIVES OF THE STUDY

The basic idea behind undertaking Currency Derivatives project to gain knowledge about currency future market.

To study the basic concept of Currency future To study the exchange traded currency future

Currency derivatives
To understand the practical considerations and ways of considering currency future price. To analyze different currency derivatives products.

Limitations of the Study

Every study is bound by limitations and as such this is no exceptions. 1. The analysis was purely based on the secondary data. So, any error in the secondary data might also affect the study undertaken. 2. The currency future is new concept and topic related book was not available in library and market. 3. Confidential matters were not disclosed by the company. 4. There were time constraints.

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Existing & proposed product
Produts and services
1.Equity Trading

The best way to amass wealth is by investing in the stock market. However, it can be a risky proposition considering the high risk-return trade off prevalent in the stock market. Therefore before investing, the clients should know how to go about it. By opening an account with Shriram, an investor can avail additional benefits like access to various intraday and fundamental calls.

2.Commodity Broking Investment in commodities is advisable in the portfolio, as it is generally considered as defensive because stocks and bonds witnesses adverse performance during times of inflation. We offer our advisory services with enhanced research and knowledge aims to capitalize the immense potential of the commodities market

3.Derivatives Trading We, at Shriram Securities, have endeavoured to make trading in derivatives simpler. We strive to educate new entrants in the derivatives trading market so that they are more equipped with knowledge and techniques.

4.Portfolio Management Services Our Portfolio Management Service is well suited for high-net worth customers who want to invest in Indian Equities and desire to create wealth over longer period After understanding varied risk appetites and financial goals of individuals Shriram has created an Investment Strategy called Wealth- MAX Strategy

Currency derivatives

Module description
Introduction: Marketing research means the systematic gathering, recording, analyzing of data about problems relating to the marketing of goods and services All of research can be categorized into basic and applied. 1. BASIC RESEARCH: - Basic Research is that intended to expand the body of knowledge for the use of others. 2. APPLIED RESEARCH: - Applied Research is one, which is carried out to find the solution for a particular problem or for guiding a specific decision. It is usually private in nature. My research on Icon Paints is carried on for guiding specific decisions and its results are useful only to Icon Paints for taking particular decision regarding product quality, staff and security. Hence the nature of my research study is APPLIED RESEARCH . 5.4) Process of Marketing Research: The marketing research is done in systematic process. The Researcher has pursued the below process of marketing for my study at Shriram: 5.4.2) RESEARCH DESIGN: Research design indicates the methods and procedure of conducting research study. Research design can be done in following three types:1 Exploratory Research:-

Currency derivatives
Exploratory research focuses on the discovery of new ideas and is generally based on secondary data. 2 Descriptive Research:Descriptive research is undertaken when the researcher want to know the characteristics of certain groups. 3 Causal or Experimental Researches:An experimental research is undertaken to identify causes and effect relationship between two variables. The Research Design is: Descriptive Research Design 5.4.3) Data Collection and Sampling: A) Sources of Data Collection:Basically there are two types of data i.e. secondary and primary: I) Primary Data Collection:-

Primary data collection contains the following four types of methods: 1 Observation Method: It contains Causal observation, Systematic observation, direct observation and contrived observation. 2 Survey Method: It contains Personal Interview, Telephone Interview and Mail Interview. 3 Experimental Method. 4 Panel Method. II) Secondary Data Collection: -

Currency derivatives
It can be collected from internal as well as external sources 1 Internal Source: Various internal sources like employee, books, sales activity, stock availability, product cost, etc. 2 External Sources: Libraries, trade publications, literatures, etc are some important sources of external data. The Researcher has used primary data for the core purpose of the project and this primary data has been gathered by survey method. The researcher has also used secondary data B) Data collection Tools: To conduct a survey, the Researcher has selected a structured questionnaire as an instruction for gathering valuable information from the customers. Questionnaire, which is used for the survey, is consisting of questions and checklist questions to check the customer feedback. C) Sampling Plan: The researcher has design a sampling plan that is consist of five decisions. I) Sampling unit:

Who is to be surveyed? The Researcher has selected youngsters, businessmen, and housewives, employees to conduct survey and to measure satisfaction level. II) Sampling types:

There are two types of sampling i.e. Probability Sampling and Non probability Sampling. i) Probability Sampling : -

Currency derivatives
Probability sampling means each unit of the universe has equal chance of getting selected. The most frequently used probability sampling methods are as below: a) Simple Random Sampling. b) Stratified Random Sampling. c) Multi-stage Random Sampling. d) Cluster Sampling. e) Multi phase Sampling. f) Replicated Sampling. ii) Non Probability Sampling:Non Probability sampling contains following methods:a) Judgment Sampling. b) Convenience Sampling. c) Panel Sampling. d) Quota Sampling For this purpose the researcher has used non probability convenience sampling. III) Sample Size:

Sample size means limited numbers of respondents covered under the research study from a population and the researcher has taken a survey of 100 respondents to know the satisfaction level of customer.

Currency derivatives
Why the particular project is chosen

If any Indian firm borrows funds from international financial market in US dollars for short or long term then at maturity the same would be refunded in particular agreed currency along with accrued interest on borrowed money. It means that the borrowed foreign currency brought in the country will be converted into Indian currency, and when borrowed fund are paid to the lender then the home currency will be converted into foreign lenders currency. Thus, the currency units of a country involve an exchange of one currency for

another. The price of one currency in terms of other currency is known as exchange rate.

The foreign exchange markets of a country provide the mechanism of exchanging different currencies with one and another, and thus, facilitating transfer of purchasing power from one country to another.

With the multiple growths of international trade and finance all over the world, trading in foreign currencies has grown tremendously over the past several decades. Since the exchange rates are continuously changing, so the firms are exposed to the risk of exchange rate movements. As a result the assets or liability or cash flows of a firm which are denominated in foreign currencies undergo a change in value over a period of time due to variation in exchange rates.

Currency derivatives
Why the particular organization chosen
Shriram Groups businesses strive to serve the largest number of common people. Consider these: Commercial Vehicle Financing, Consumer & Enterprise Finance, Retail Stock Broking, Life Insurance, Chit Funds and Distribution of Investment & Insurance Products. Our foray into Non-Life (General) Insurance is again a strong expression of this commitment. Reflecting on FY 2009-2010, it gives me great deal of satisfaction. It has been a landmark year in performance and scalability. Incepted in 2005, today we are one of the fastest growing financial institutions and we have diversified interests in multiple asset classes with more than 50,000+ client base in Pan India and a support team of over 800+ professionals extended across 450 locations in more than 300 cities and towns. The values of the company have been a driving factor behind the growth of the company The company has always preferred to walk an extra mile when it comes to servicing clients needs. It believes that the growth of the company lies in the growth of the clients For our company, the interest of the clients is at the forefront. This has come not from the aim of achieving customer satisfaction but the aim to achieve customer delight. The company strongly believes that though the people work hard to make money, the same money should work for them. We here at Shriram believe that Transparency is the base of a long term relationship. This has been an important differentiating factor for the company which enjoys enormous amount of trust and goodwill because of the transparent dealings and straightforward approach that it has followed since inception. Till now, we have achieved many goals and reached many milestones. In future also we will try to deliver the best value services to our clients. On the global economic front I would like to say that major economies have started stabilizing except some European economies that are suffering from sovereign debt and unsustainable deficit. A recent IMF report showed that the global economy expanded by nearly 5 percent during the first quarter of 2010. This is primarily on account of robust recovery in the Asian economies.

Currency derivatives

Organization profile
Stock Broking business of the group was started in 1995, promoted by professional entrepreneurs and incubated by the Shriram Group through its entity, Shriram Insight Share Brokers Ltd. Stock Broking business commenced operations with a corporate membership in NSE in the cash segment in 1996. Membership in the derivatives segment in the NSE was acquired in 2003. The Business has expanded into the commodities market with a trading-cum-clearing membership in the Multi Commodity Exchange (MCX) and the National Commodities and Derivatives Exchange (NCDEX) through a 100% subsidiary.Stock Broking business is firmly focused in the rapidly growing High Networth Individual (HNI) and Retail space. Member: National Stock NSE SEBI Reg. No. : NSE-CM [INB 230947033] | BSE-CM [INB 010947035] || NSE-F&O [INF 230947033] ,DP [IN-DP-CDSL-293-2005] ,MCX [Membership No: 10115] |The business has an active client base of over 1,50,000.The business operates through 1000 branches with equal no. of trading terminals. The business model of Stock Broking largely focused on owned branches in the initial years and has now graduated into the franchisee mode of expansion that will cater to PAN India target market. Rapid expansion has been made possible in this two-pronged strategy of owned and franchised outlets and is expected to have an end-state distribution, networking over 3000 branches. As the business starts targeting the next level of mass affluent customers, expanding into wealth management and advisory space, same would also become a key thrust area that can potentially enhance profitability and shareholder value in the medium term.

Shiram Insight Logo:

Shiram Insight slogan

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Currency derivatives
About Shiram Insight
The Group has also made investments in Manufacturing, Value Added Services, Project Development, Engineering Services, Pharmaceuticals, Machined & Auto Components, Press Dies & Sheet Metal Stamping, Packaging, Information Technology, Property Development etc.

Genesis of the Shriram phenomenon

The 30,000 Cr Shriram Group had its humble beginnings in the Chit Fund business over three decadesago. R Thyagarajan, AVS Raja and T Jayaraman were the three musketeers who ventured into these businesses. Not many in the financial services industry thought at that time, this small Chit Funds business in Chennai would indeed be the foundation for the financial conglomerate that Shriram is today.

The Shriram Way!

Shriram Groups businesses strive to serve the largest number of common people. Consider these: Commercial Vehicle Financing, Consumer & Enterprise Finance, Retail Stock Broking, Life Insurance, Chit Funds and Distribution of Investment & Insurance Products. Our foray into Non-Life (General) Insurance is again a strong expression of this commitment.

Milestones
Year Milestone 1974 Commencement of Business - Shriram Chits 1979 Commencement of Business - Shriram Transport Finance Co (STFC) 1982 Commencement of Business - Shriram Investments Ltd 1984 IPO of STFC 1986 Commencement of Business - Shriram City Union Finance Co (SCUF) 1988 IPO of SCUF 1989 Commencement of Business - Shriram Overseas Finance Ltd 1995 Commencement of Business- Shriram Properties Pvt Ltd 1999 Commencement of Business - Shriram Insight Share Brokers Ltd

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1999 Citicorp CV financing tie up with STFC 2000 Commencement of Business - Shriram EPC Ltd 2000 Commencement of Business - TAKE Solutions Ltd 2004 Commencement of Business - Shriram Capital Ltd 2005 Entry of Chryscapital as Partner with STFC & EPC 2005 Entry of Sanlam as Life Insurance business partner and commencement of businessShriram Life Insurance Co 2006 Merger of Shriram Investments Ltd & Shriram Overseas Finance Ltd with STFC 2006 Commencement of Business - Shriram Fortune Solutions Ltd 2006 Commencement of Business - Shriram Value Services 2006 Entry of TPG as STFC's partner 2007 Shriram EPC's JV with Leitner Technologies for Manufacture of wind turbines 2007 EPC's foray into Air Pollution Control with Hamon through JV 2007 Orient Green Power was founded by Shriram EPC 2007 IPO of TAKE Solutions Ltd 2008 Commencement of Business - Shriram General Insurance Ltd 2008 IPO of Shriram EPC Ltd 2009 NCD Placement of Rs 10 Bn by STFC 2010 IPO of Orient Green power

Industrial Investments
The Group has also made investments in Manufacturing, Value Added Services, Project Development, Engineering Services, Pharmaceuticals, Machined & Auto Components, Press Dies & Sheet Metal Stamping, Packaging, Information Technology, Property Development etc.

Non-Finanical service:-

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Shriram Group has always encouraged entrepreneurship by demonstrating continuous apetite for investing in start-up manufacturing business.

Our Investment
The Group has also made investments in Manufacturing, Value Added Services, Project Development, Engineering Services, Pharmaceuticals, Machined & Auto Components, Press Dies & Sheet Metal Stamping, Packaging, Information Technology, Property Development etc.

About Founder

Mr.R Thyagarajan, Founder

Chairman of the Shriram Group of Companies - Promoted the Shriram Group Companies in 1974. Today the group has over 15, 000 employees and operating through 700 locations and manage funds of over 15,000 Crores in the business of financial services including life insurance and general insurance. Masters in Mathematics Masters in Mathematical Statistics from Indian Statistical Institute Associate of Chartered Insurance Institute (A.C.I.1), London Visiting faculty of Asian Institute of Insurance, Philippines on Consequential Loss Insurance. By inculcating the philosophy of putting people first, he has transformed the Shriram Group into Indias Premier Networked Financial Services Supermarket Chain. The Network Shriram comprises over 650 Branches and Service Centers, served by more than 6000 employees and 60,000 agents committed to ensuring world-class customer service. The Groups aggregate turnover exceeds Rs. 5000 crores.

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Shiram group Services

Financial Services

Financial Services :Helping Create Wealth. Empowering people through prosperity. Resulting in inclusive growth. The relentless pursuit of this mission, since our inception in 1974 has given the Shriram Group our raison d'tre and our distinct identity. The Groups reputation for effectiveness, transparency and integrity has helped it to become one of Indias largest Financial Services Network.The Groups Financial Services Businesses manage assets exceeding Rs.40,000 crores, has 6.5 million clients, served by 1,00,000 Agents and 36,000 employees, through 2700 Branches across India.Our core financial services businesses are housed under the holding company Shriram Capital Ltd: Commercial Vehicle Finance Life Insurance General Insurance Consumer & Enterprise Finance Financial Product Distribution Retail Stock Broking Chit Funds

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Non-Financial Services:Shriram Group has always encouraged entrepreneurship by demonstrating continuous apetite for investing in start-up manufacturing business.

Our Investment
The Group has also made investments in Manufacturing, Value Added Services, Project Development, Engineering Services, Pharmaceuticals, Machined & Auto Components, Press Dies & Sheet Metal Stamping, Packaging, Information Technology, Property Development etc.

Corporate management :Board Of Directors

Arun Duggal

Mr. Arun Duggal is an experienced international banker and has advised companies on financial strategy, M&A and capital raising.

He is Chairman of Board of Directors of Shriram, Shriram Properties Limited, Shriram City Union Finance Limited and Shriram EPC Limited. He is the Vice Chairman of International Asset Reconstruction Company. He is on the Board of Directors of Jubilant Energy NV., Patni Computers (Chairman - Audit Committee), Fidelity Fund Management, LNG Petronet (Nominee Director of Asian Development Bank), Manipal Acunova, Zuari Industries, Info Edge (India), Dish TV India , Mundra Port & SEZ, and Hertz (India). Mr. Duggal is Advisor to IMA (formerly Economist Intelligence Unit, India). He is a member of the Investment Committee of Axis Private Equity. He was on the Board of Governors of the National Institute of Bank Management. He is a Board Member and erstwhile Chairman of the American Chamber of Commerce, India. Mr. Duggal is involved in several initiatives in social sector. He is a founder Director of Bellwether Microfinance Fund which provides equity capital to promising Micro Finance organizations and helps them in capacity building. He is a Trustee of Centre for Civil Society. New Delhi, which focuses on improving the quality and access of education to students especially for the poor. He is Senior Advisor (Asia Pacific ) to Transparency International Berlin, which is undertaking a number of initiatives to combat corruption problem around the world. Mr. Duggal had a 26 years career with Bank of America, mostly in the U.S. Hong Kong and Japan.

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His last assignment was as Chief Executive of Bank of America in India from 1998 to 2001. He spent ten years (1981-1990) with the New York Corporate Office of Bank of America handling multinational relationships. From 1991-1994 as Chief Executive of Bank of America Asia Limited, Hong Kong he looked after Investment Banking activities for the Bank in Asia. In 1995 he moved to Tokyo as the Regional Executive, managing Bank of America 's business in Japan, Australia and Korea. From 2001 to 2003 he was Chief Financial Officer of HCL Technologies, India. A Mechanical Engineer from the prestigious Indian Institute of Technology, Delhi, Mr. Duggal holds an MBA from the Indian Institute of Management, Ahmedabad. He teaches Banking & Finance at the Indian Institute of Management, Ahmedabad as a visiting Professor. R.Sridhar (Managing Director) Adit Jain S.Venkatakrishnan Maya Shanker Verma Mukund Manohar Chitale Puneet Bhatia Ranvir Dewan Sumatiprasad M. Bafna S.Lakshminarayanan

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Services offered from Shiram Insight

capital market Mutual Funds

Ipo

Derivatives

Commodites

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