FM - Angel Broking

A Project Repot On
THE DEGREE OF LITERACY ABOUT STOCK MARKET

At
(Conducted on Behalf of Angel Broking Ltd, Varachha, Surat.)

Under the Guidance of (in Company) Mr Nilesh Ghaveriya
Under the Guidance of (College) Mrs Arpita Vaghela
Institution
Submitted to Gujarat Technological University - Ahmedabad Prepared By: MEHUL B HIRANI
M.B.A. Sem. II, Seat No 13899
K.K.PAREKH INSTITUTE OF MANAGEMENT STUDIES - AMRELI
Company Certificate
K. K. Parekh Institute of Management Student Amreli

Dr. Jivraj Mehta Vidhya Vihar Campus Lathi road Amreli Ph: (02792) 223509 fax: (02792) 223509 E-mail: kkpimsa@yahoo.com Web: kkpimsamreli.com
DIRECTORS RECOMMENDATION
TO, The Registrar Gujarat Technological University Ahmedabad
Subject: MBA Summer Training Project Report
Respected Sir,
I am recommending the Summer Training Project entitled- THE DEGREE OF LITERACY ABOUT HIRANI MEHUL ____ at STOCK MARKET prepared by
ANGEL BROKING LTD _____________
_____________________________ as the partial fulfillment of the University requirement for the award of MBA degree of Gujarat Technology University Ahmedabad.
Date: You, Place: - Amreli
Thanking
Yours Truly
Director
STUDENT DECLARATION
I the undersigned student HIRANI MEHUL B of K. K. Parekh Institute of Management Studies Amreli M.B.A. II Semester, hereby declare that, the project on THE DEGREE OF LITERACY ABOUT SYOCK
MARKET_______________ is my own work.
In the partial fulfillment of Master Degree of Business Administration, I had undergone project work at under the guidance of Mrs. Arpita Vaghela ANGEL BROKING LTD K. K. Parekh Institute
of Management Studies Amreli and submitted to Gujarat Technological University, Ahmedabad.
This project work is my original work and has not been submitted to any where earlier.
Date :-
signature :-
PREFACE Knowledge and human power are synonyms, once said the great philosopher Francis Bacon. However based on the experience within todays global markets, he would probably say, The ability to capture, communicate & leverage knowledge to solve problems is human power. This raises the question how exactly one can best capture, communicate & leverage knowledge, especially within world of system engineering.
The tryst for knowledge and power led me to two years M.B.A. degree course as part of this long-term investment. This course not only enabled me to focus firmly on the current trend but also helped to focus on future changes.
As a part of this M.B.A. degree, students have to undergo a project, which is designed keeping the prerogative and preferences of industry in mind. This particular project allows a student to implement what I have learned within the four walls of classroom. It is here that the caliber of student is tested to find his flexibility for rigorous tasks assigned to him in future.
This report that I am submitting intends to highlight my versatility in sustaining the pulls and pressure of day to day professional life and put to perspective the facts that I am capable enough to deliver whenever a challenge is thrown to me.
This report is divided in two parts. The first part gives the basic information about the project, the industry and the company. The second part consists of Research Analysis and Conclusion on the basis of particular Research Process. At the end I have provided a short list of the reference books and the sites that provided useful information during the project.
ACKNOWLEDGEMENT No endeavor is complete without acknowledging those who have helped to make this project a success. As such I would like to thank all those who have helped me to complete this project.
I am obliged with the Gujarat Technological University, Ahmedabad for granting me the golden opportunity to work as a trainee. I would also like to express my gratitude to K.K.Parekh Institute of Management Studies, Amreli.
I, Indebted to Angle Broking Ltd., for providing me the opportunity to work as a trainee. I would also like to express my gratitude to Mr. Pankaj Barvaliya (MBA) who welcomed me enthusiastically and helped me in my project report.
I would like to thank all the staff persons of Angle Broking Ltd. (Surat Branch), they provided me with the necessary information/data and advice, and many thanks are due for the same they could not have been successful without the valuable input of the customer.
I would also like to thank Mr. Bhavesh Hirapara (C.F.A) for his active involvement in my research work, her enthusiasm in reviewing my research, and for giving me valuable insights. Your patience and support is greatly appreciated.
This study could not have been successful without the valuable input of the clients of the Angle Broking Ltd.
Date :signature :-
EXECUTIVE SUMMARY The Indian Financial System has undergone a considerable change in the recent past. The Financial Sector reforms, along with technological advancement have integrated international markets, which have facilitated the scope for uninterrupted mobility of funds in various financial markets. It has also led to efficient and low-cost transactions related to securities. This can be seen in the Indian financial sector reforms also, which started in the early 1990s.
Dematerialization of financial securities is the first sign of financial reforms in India. Finance Ministry and SEBI realized the need of more efficient financial system. As a result of this NSDL and CDSL came into picture. It aims at ensuring the safety and soundness of Indian marketplaces by developing settlement solutions that increase
efficiency, minimize risk and reduce costs. My project on The Literacy About Stock Market gave us a detail picture whether people know about stock market or not and at what extent they are aware about stock market. I have conducted study in the Surat city. How the people want learn about stock market and how much time they are ready to spend. This study reflects about what are the investments instruments people are using in Surat city. It is also known that people are giving importance to various factors while investing into stock market. Which investment option they selected as per the needs and preferences. For e.g., the large part of the sample was giving much importance to Safety and thus the number of people who invest in Insurance was the largest. As the capital market is gaining strengths and touching new highs frequently, there is a trend of more and more people now investing in stocks
It becomes increasingly important for students of management to understand the developments in the financial infrastructure that
facilitates the whole financial system. We were fortunate enough to get an opportunity to do our summer training in such an area as it gave us a wide understanding of the entire demat system in our country.
INDEX
SR No.
1. 1.1 1.2 1.3 2. 2.1 2.2 2.3 2.4 2.5 2.6 2.7 2.8 2.9 2.10 3. 4. 4.1 4.2 4.3 4.4 4.5 4.6 4.7 4.8 4.9 5. 6. 7. 8. 9. Industry profile
PARTICULARS
PAGE NO.
2 3 9 16 24 25 27 27 27 29 29 30 32 54 63 71 94 95 96 96 99 99 100 101 101 103 120 121 122 124 125
History of Stock Exchanges Development Major player Company Profile History Mission Business Philosophy Vision Quality Assurance Policy Core Competence Organizational Structure Product offered by Angel Overview of Derivatives Market Overview of Commodity Market Study Of Four Function Area Research Methodology

Introduction Define The Problem Literature Review Objective Of The Study Rational Of The Study Limitation of The Study Variable and Hypothesis Formulation Data Collection
Data Analysis & Interpretation Findings Suggestions Conclusion Bibliography Questionnaire
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INDUSTRY PROFILE
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1.1) HISTORY OF STOCK EXCHANGES

Though the historical records relating to securities market in India is meager and obscure, there is evidence to indicate that the loan securities of the East Indian Company used to be traded towards close of the 18th century. By 1830s, the trading in shares of banks started . The trader by the name of broker emerged in 1830 when 6 persons called themselves as share brokers. This number grew gradually. Till 1850, they traded in shares of banks and securities of the East India Company in Mumbai under a sprawling Banyan Tree in front of the Town Hall, which is now in the Horniman Circle Park. It is no surprise that the majestic Phiroze Jeejeebhoy Towers is located at the Horniman Circle. In 1850, the Companies Act introducing limited liability was enacted heralding the era of modern joint stock company which propelled trading volumes.
The American Civil War broke out in 1861 which cut off supply of cotton from the USA to Europe. This heightened the demand for cotton from India. Cotton prices increased. Exports of cotton grew, payments were received in bullion. The great and sudden spurt in wealth produced by cotton price propelled setting up companies for every conceivable purpose. Between 1863 and 1865, the new ventures raised nearly Rs.30 crore in the form of paid up capital and nearly Rs. 38 crore of the premia. Rarely was a share which did not command a premium between 1861 and 1865. The Back Bay Reclamation share with Rs.5,000 paid up was at Rs.50,000 premium, the Port Canning Share with Rs. 1,000 paid up was at Rs.11,000 premium, etc. There was a share mania and every body was after a piece of paper, variously Called allotments, scrips and shares.
The people woke up only when the American Civil war ended. Then all rushed to sell their securities but there were no buyers. They were left with huge mass of unsaleable paper. This occurred then. This also occurs today at
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regular intervals. The bubbles and burst continue to be a perennial feature of the securities market world over.
The depression was so severe that it paved way for setting up of a formal market. The number of brokers, which had increased during the civil war to about 250, declined. During the civil war, they had become so influential and powerful that even the police had only Salams for them. But after the end of the civil war, they were driven from pillar to post by the police. They moved from place to place till 1874 when they found a convenient place, which is now appropriately called Dalal Street after their name. They organized an informal association on or about 9th July 1875 for protecting their interests. On 3rd December 1887, they established a stock exchange called Native Share and Stock Brokers Association. This laid the foundation of the oldest stock exchange in India. The word native indicated that only natives of India could be brokers of the Exchange. In 1880s a number textile mills came up in Ahmedabad. This created a need for trading of shares of these mills.
In 1894, the brokers of Ahmedabad formed "The Ahmedabad Share and Stock Brokers' Association". As a result of Swadesi movement and the coal boom of 1904-08, Calcutta became another major center of share trading and an exchange was set up in 1908. During interwar years, as the demand for industrial goods kept increasing, existing enterprise expanded and new ones were floated. Yet another stock exchange was started in Madras in 1920. Stock exchanges in Hyderabad and Delhi started operations in the year 1943 and 1947, respectively. At the time of independence, there were seven stock exchanges functioning in major cities of the country.
From 7 stock exchanges in 1946, the country moved to form a total of 19 stock exchanges by 1990. There were 5968 companies listed as against 1125 in 1946. The paid up capital of these companies multiplied many fold from Rs 270 crore in 1946 to 27761 crore in 1990. The market capitalization of listed companies jumped from Rs. 971 crore in 1946 to 70521 crore in 1990. K.K.PAREKH INSTITUTE OF MANAGEMENT STUDIES - AMRELI 13
From the nineties, started the current phase under which Indian stock exchanges are undergoing a rapid transition to be at par with stock exchanges in the developed world. Before 1990, the trading system was the open out cry system with scrips classified as specified and non-specified or cash scrips that were compulsorily settled with delivery at the end of the settlement. There were long and varying periods for specified and nonspecified shares in the old clearing system because of the intricacies involved in the physical form of shares.
The membership of stock exchanges was initially open to individuals and partnership firms and was later opened to companies. While the Bombay Stock Exchange, Ahmedabad Stock Exchange and Madhya Pradesh Stock Exchange, were organized as voluntary non-profit associations of persons, the Calcutta Stock Exchange, Delhi Stock Exchange, Uttar Pradesh Stock Exchange, and others including Ludhiana, Cochin, Gauhati, Jaipur and Mangalore Stock Exchanges were organized as public limited companies. The governance of stock exchanges rests in a governing board comprising of the members of the board and an Executive Director. Members of the governing board include brokers and non-brokers including government nominees.
Earlier, the investor service levels were low and the regulatory laws inadequate. In the mid- eighties, the G.S. Patel committee on stock exchange reforms and the Abid Hussein Committee on capital markets recommended the creation of a second tier stock market. In 1991, the Department of Economic Affairs, Ministry of Finance, and Government of India to instituted an expert study:
1. Study the trading system, covering both specified and non-specified Shares on major stock exchange. 2. Review effectiveness of regulation and surveillance over trading operation, 3. Look in to the working of badla and its impact on trading, and 4. Make recommendations for investors for investor confidence. K.K.PAREKH INSTITUTE OF MANAGEMENT STUDIES - AMRELI 14
In 1991, another high-powered study group on establishment of new stock exchanges, popularly known as the Pherwani Committee recommended the promotion of a new stock exchange at new Bombay as a model exchange and to act as a National Stock Exchange (NSE). So, NSE was granted recognition as a stock exchange in April 1993 and it started operation with wholesale debt market (WDM) segment in June 1994. It started equity trading in November 1994 and, in a short span of the one year, surpassed the volume at BSE, the largest stock exchange in the world to the first place in the country in the first year of its operations.
It is based on the model of National Association of Securities Dealers Automated Quotation (NASDAQ) of USA, with modification to suit the Indian conditions. It commenced operations from October 6, 1992.
OTCEI arose out of the need to have a second tier market in the country. It was set up to provide small and medium companies an access to capital market for raising finance in a cost-effective manner and investors with a convenient, transparent, and efficient avenue for capital market investment.
The national reach of BSE and NSE and cutthroat competition between them, threatened the existence of the regional stock exchanges (RSEs). The survival of these RSEs, which once had a secure position, had now become a cause for concern. So these RSEs formed the Federation of Indian Stock Exchanges (FISE) in early 1996. The eroding market share, dwindling volumes, and declining profitability of members at the RSEs left the FISE with the two options: join the hands with the BOLT expansion plan or maintain status quo and wait until capital market revived.
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OVERVIEW OF THE INDIAN SECURITIES MARKET

INTRODUCTIONS A securities market provides a channel for allocation of savings to those who have a reductive need for them. As a result, the savers and investors are not constrained by their individual abilities, but by the economys abilities invest and save respectively, which inevitably enhance saving and investment in the economy. Market segment :The securities market has to interdependent and inseparable segments; the primary and the secondary market. The primary market provides to channel for creation of new securities through issuance of financial instrument by public companies as well as Government and government agencies and bodies whereas the secondary market helps the holders of these financial instruments to sale for exiting from the investment.
A public issue does not limit any entity in investing while in private placement, the issuance is done to select people in terms of companies Act, 1956; an issue becomes public if it results in allotment to more than 50 persons. This means an issue resulting in allotment to less than 50 people is private placement. There are two major types issuers who issue securities. The corporate entities issue mainly debt and equity instrument (shares, debentures, etc.), while the governments (central & state Government) issue debt securities (dated securities, treasury bills). The secondary enables participant who hold securities adjust their assessment of risk and return. They also sell securities for cash to meet their liquidity needs.
Trades taking place over a trading cycle (one day under rolling settlement) are settled together after a certain time all the 23 stock exchange in the country provide facilities for trading of corporate securities.
In derivatives market (F&O market segment of NSE), standardized contracts are traded for future settlement.
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These futures can be on a basket of securities like an index or an individual security. In case of options, securities are traded for conditional future delivery. There are two types of options a put option permits the owner to sell a security to the writer of options at a predetermined price while a call option permits the owner to purchase a security from the writer of the option at a predetermined price.
These options can also be on individual stocks or baskets of stocks like index. Two exchanges namely NSE and the stock exchange, Mumbai (BSE) provide trading of derivatives of securities. Today the participants have the flexibility of choosing from a basket a products likes: Equities Bond issued by both government and companies Futures on benchmark indices as well as stocks Options on benchmark indices as well as stocks Future on interest rate products like national 91 day T-bills, 10 year national zero coupon bond and 6% national 10 year bond. Along with this growth, the profiles of the investors, issuers and intermediaries have change significantly. The market has witnessed several institutional changes resulting in drastic reduction in transaction costs and significant improvement in efficiency, transparency, liquidity and safety. In a short span of time, Indian derivatives market has got a place in list of top global exchanges. In signal stock futures category, the futures industry association (FIA) placed NSE in second position in the year 2000.
Reforms in the securities market , particularly the establishment and empowerment of SEBI, market determined allocation of resources, screen based nation wide trading, dematerialization and electronic transfer of
security, rolling settlement and ban on deferral products, sophisticated risk management and derivatives trading have greatly improved the regularity framework and efficiency of trading and settlement.
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1.2) DEVLOPEMENT
Bombay Stock Exchange Limited (the Exchange) is the oldest stock exchange in Asia with a rich heritage. Popularly known as "BSE", it was established as "The Native Share & Stock Brokers Association" in 1875. It is the first stock exchange in the country to obtain permanent recognition in 1956 from the Government of India under the Securities Contracts (Regulation) Act, 1956. The Exchange's pivotal and pre-eminent role in the development of the Indian capital market is widely recognized and its index, SENSEX, is tracked worldwide. Earlier an Association of Persons (AOP), the Exchange is now a demutualised and corporatized entity incorporated under the provisions of the Companies Act, 1956, pursuant to the BSE (Corporatization and Demutualization) Scheme, 2005 notified by the Securities and Exchange Board of India (SEBI). Bombay Stock Exchange Limited received its Certificate of Incorporation on 8th August, 2005 and Certificate of Commencement of Business on 12th August, 2005. The 'Due Date' for taking over the business and operations of the BSE, by the Exchange was fixed for 19th August, 2005, under the Scheme. The Exchange has succeeded the business and operations of BSE on going concern basis and its recognition as an Exchange has been continued by SEBI For the premier Stock Exchange that pioneered the stock broking activity in India, 125 years of experience seem to be a proud milestone. A lot has changed since 1875 when 318 persons became members of what today is called "Bombay Stock Exchange Limited" by paying a princely amount of Re1.
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The journey in the 20th century has not been an easy one. Till the decade of eighties, there was no measure or scale that could precisely measure the various ups and downs in the Indian stock market. Bombay Stock Exchange Limited (BSE) in 1986 came out with a Stock Index that subsequently became the barometer of the Indian Stock Market. SENSEX, first compiled in 1986 was calculated on a "Market Capitalization-Weighted" methodology of 30 component stocks representing a sample of large, well-established and financially sound companies. The base year of SENSEX is 1978-79. The index is widely reported in both domestic and international markets through print as well as electronic media. From September 2003, the SENSEX is calculated on a freefloat market capitalization methodology. The "free-float Market CapitalizationWeighted" methodology is a widely followed index construction methodology on which majority of global equity benchmarks are based. The launch of SENSEX in 1986 was later followed up in January 1989 by introduction of BSE National Index (Base: 1983-84 = 100). It comprised of 100 stocks listed at five major stock exchanges in India at Mumbai, Calcutta, Delhi, Ahmedabad and Madras. The BSE National Index was renamed as BSE-100 Index from October 14, 1996 and since then it is calculated taking into consideration only the prices of stocks listed at BSE. The Exchange launched dollar-linked version of BSE-100 index i.e. Dollex100 on May 22, 2006 With a view to provide a better representation of the increased number of companies listed, increased market capitalization and the new industry groups, the Exchange constructed and launched on 27th May, 1994, two new index series viz., the 'BSE-200' and the 'DOLLEX-200' indices. Since then, BSE has come a long way in attuning itself to the varied needs of investors and market participants. In order to fulfill the need of the market participants for still broader, segment-specific and sector-specific indices, the Exchange has continuously
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been increasing the range of its indices. The launch of BSE-200 Index in 1994 was followed by the launch of BSE-500 Index and 5 sectorial indices in 1999. In 2001, BSE launched the BSE-PSU Index, DOLLEX-30 and the country's first free-float based index - the BSE TECK Index. The Exchange shifted all its indices to a free-float methodology (except BSE PSU index) in a phased manner. The Exchange also disseminates the Price-Earnings Ratio, the Price to Book Value Ratio and the Dividend Yield Percentage on day-to-day basis of all its major indices.
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NSE was incorporated in 1992 and was given recognition as a stock exchange in April 1993. It started operations in June 1994, with trading on the wholesale debt market segment. Subsequently it launched Capital market segment in November 1994 as a trading platform for equities and the futures and options segment in June 2000 for various derivative instruments.
NSE was set up with the objectives of:
1. Establishing a nationwide trading facility for all type of securities: 2. Ensuring equal access to investors all over the country through an appropriate communication network. 3. Providing a fair, efficient and transparent securities market using electronic trading system 4. Enabling shorter settlement cycles and book entry settlements;
NSE has been able to take the stock market to the doorsteps of the investors. The technology has been harnessed to deliver the services to the investors across the country at the cheapest possible cost. It provides a nationwide, screen-based, automated trading system, with a high degree of transparency and equal access to investors irrespective of geographical location. The high level of information dissemination through online system has helped in integrating retail investors on a nationwide basis.
The standards set by the exchange in terms of market practices, products, technology and service standards have become industry benchmark
and are being replicated by other market participants. Within a very short span of time, NSE has been able to achieve all the objectives for which it was set up. It has been playing a leading role as a change agent in transforming the Indian Capital Markets to its present form. The Indian Capital Market are a far cry from what they used to be a decade age in terms of market practices, infrastructure, technology, risk management, clearing and settlement and investor service.
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Benefits of listing on NSE :The benefits of listing on NSE are as enumerated below: NSE provides a trading platform that extends across length and breath of the country. Investors from approximately 345 centers can avail of trading facilities on the NSE trading network. Listing on NSE thus, enables issuers to reach and service investors across the country. NSE being the largest stock exchange in terms of trading volumes, the securities trade at low impact cost and are highly liquidity. This in turn reduces the cost of trading to the investor. The trading system of NSE provides unparallel level of trade and post information. The best five by and sell orders are displayed on the trading system and the total number of securities available for buying and selling is also displayed. The facility of making initial public offer (IPOs), using NSEs network and software, results in significant reduction in cost and time of issues.. Listed companies are provided with monthly trade statistics for the securities of the company listed on the exchange.
Annexure II- S&P CNX Nifty Index: May 2010

Free Float Market Capitalization for April 2010
No Security Symbol
Equity Capital
Weightage
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(In Rs.) 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 ABB ACC AMBUJACEM AXISBANK BHEL BPCL BHARTIARTL CAIRN CIPLA DLF GAIL HCLTECH HDFCBANK HEROHONDA HINDALCO HINDUNILVR HDFC ITC ICICIBANK IDEA INFOSYSTCH IDFC JPASSOCIAT JINDALSTEL KOTAKBANK LT M&M MARUTI NTPC ONGC POWERGRID PNB RANBAXY RELCAPITAL RCOM RELIANCE RELINFRA RPOWER SIEMENS SBIN SAIL STER SUNPHARMA SUZLON TCS 423816750 187744866 3048338372 4051741190 4895200000 3615421240 18987650480 18971635170 1605842714 3394788440 12684774000 1353821440 4577432720 399375000 1913462442 2181686781 287327776 3818176790 11145618140 32998377920 2869125960 13011286920 4249269266 931486088 3481652020 1205328528 2892172390 1444550300 82454644000 21388725300 42088412300 3153025000 2103341010 2456328000 10320134405 32867018930 2252702620 23968000000 674320400 6348802220 41304005450 1680783722 1035581955 3113479486 1957220996
(Rs. Crore) 8717.819766 8268.413671 8887.392061 30688.98 37186.0059 7509.233685 32119.48111 12916.69079 16187.17831 10032.83393 20377.18993 8268.601922 65925.82635 17425.08655 19527.47845 24821.49365 70840.34677 73961.66068 96777.40231 3984.43897 128046.4974 16007.56963 14298.38311 25227.4475 13084.71141 86168.24646 24400.74273 16362.48996 25856.05809 39380.79973 5928.742615 13339.37761 6527.121837 7400.608694 9698.690226 176855.1103 13770.5584 5701.826351 10549.63467 58461.16595 12094.94143 26679.73431 12506.17471 4108.87931 37632.38649
% 0.59306695 0.56249418 0.60460283 2.087749031 2.529736987 0.510847716 2.185064983 0.878713098 1.10120199 0.682526409 1.386245438 0.562506986 4.484886109 1.185415988 1.328440183 1.688588194 4.819217366 5.031558085 6.583696425 0.271058491 8.710910268 1.088983342 0.972708623 1.71620494 0.890143419 5.861963254 1.659964814 1.113128314 1.758968862 2.679047218 0.403328056 0.907468176 0.44403536 0.503458037 0.659794855 12.03132477 0.936801091 0.387891107 0.717683988 3.977070681 0.822810085 1.815002958 0.850785987 0.279524077 2.560103935
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46 47 48 49 50
TATAMOTORS TATAPOWER TATASTEEL UNITECH WIPRO
5064816780 2373072360 8873890170 4877602094 2936690224
24089.61559 20979.92956 30517.68924 9738.87622 20117.85364
1.638799061 1.427249378 2.076096245 0.662528679 1.368602979
* Beta measures the degree to which any portfolio of stocks is affected as compared to the effect on the market as a whole
* The coefficient of determination (R2) measures the strength of relationship between Two variables the return on a security versus that of the market.
* Volatility is the Std. deviation of the daily returns for the period 01-May-2010 to 31May-2010 * Last day of trading was 31-May-2010 * Impact Cost for S&P CNX Nifty is for a portfolio of Rs. 50 Lakh * Impact Cost for S&P CNX Nifty is the Weightage average impact cost
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1.3) COMPETITORS DETAILS

STOCK HOLDING CORPORATION OF INDIA LIMITED ICICI direct.com SHARE KHAN UTI SECURITIES MARWADI GROUP HDFC SECURITIES KOTAK SECURITIES KARVY STOCK BROKING LIMITED RELIANCE MONEY
SHCIL (STOCK HOLDING CORPORATION OF INDIA LIMITED)
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Stock Holding Corporation of India Limited (SHCIL) was promoted by public financial institutions and insurance majors like IDBI, UTI, ICICI, LIC, GIC and its subsidiaries, IFCI and IIBI. SHCIL was incorporated as a public limited company on July 28, 1986. SHCIL provides depository, post trading, custodial services, securities lending to institutional investors and retail investors. Other auxiliary services provided by SHCIL include derivatives clearing, PF fund accounting, SGL constituent account services, mutual funds and other capital market instruments distribution.
ICICI direct.com
ICICI Bank is India's second-largest bank. ICICI Bank offers a wide range of banking products and financial services to corporate and retail customers through a variety of delivery channels and through its specialized subsidiaries and affiliates in the areas of investment banking, life and non-life insurance, venture capital and asset management. ICICI Bank set up its international banking group in fiscal 2002 to cater to the cross border needs of clients and leverage on its domestic banking strengths to offer products internationally. ICICI Bank currently has subsidiaries in the United Kingdom, Canada and Russia, branches in Singapore and Bahrain and representative offices in the United States, China, United Arab Emirates, Bangladesh and South Africa
SHAREKHAN
K.K.PAREKH INSTITUTE OF MANAGEMENT STUDIES - AMRELI 26
Sharekhan is an equities focused organization tracing its lineage to SSKI, a veteran equities solutions company with over 8 decades of experience in the Indian stock markets. In the stock markets. Sharekhan does not claim expertise in too many things. Sharekhan's expertise lies in stocks and that's what he talks about with authority. So when he says that investing in stocks should not be confused with trading in stocks or a portfolio-based strategy is better than betting on a single horse, it is something that is spoken with years of focused learning and experience Sharekhan brings a user- friendly online trading facility, coupled with a wealth of content that will help investors stalk the right shares.
UTI SECURITIES
UTI Bank is a registered member (Depository Participant) of NSDL. Indias first depository. We can avail all of the depository -related services by just opening an account with NSDL through UTI Bank. UTI Bank provides services like dematerialization of shares,
rematerilialization, pledge-Hypothecation, freezing/ locking Of Accounts, transfer of shares and settlements, receipt of corporate benefits, holdings & transaction statements on email, tele depository services.
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MARWADI SHARES AND FINANCE PRIVATE LIMITED
Marwadi Shares and Finance Pvt. Ltd. Was incorporated in 1992.Marwadi Group servicing more than 155000 clients. The company ranked among top 50 broking houses. It has 350 franchisee / sub-brokers and authorized persons network.
HDFC SECURITIES
HDFC Securities, a trusted financial service provider promoted by HDFC Bank and JP Morgan Partners and their associates, is a leading stock broking company in the country, serving a diverse customer base of institutional and retail investors. HDFCsec.com provides investors a robust platform to trade in Equities in NSE and BSE, and derivatives in NSE. Our website will support you with the highest standards of service, convenience and hassle-free trading tools. Our research team tracks the economy, industries and companies to provide you the latest information and analysis. Our content offers financial
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information, analysis, investment guidance, news & views, and is designed to meet the requirements of everyone from a beginner to a savvy and wellinformed trader.
KOTAK SECURITIES
Kotak Securities, an affiliate of Kotak Mahindra Bank, is the stockbroking and distribution arm of the Kotak Mahindra Group. The institutional business division, which brings you AKSESS, primarily covers secondary market broking. It caters to the needs of foreign and Indian institutional investors in Indian equities (both local shares and GDRs, Global Depository Receipts). The division also has a comprehensive research cell with sectorial analysts covering all the major areas of the Indian economy. The group a net worth of over Rs.3 550 crores and employs over 6,000 employees in its various businesses. With a presence in 89 cities in India and offices in New York, London, Dubai and Mauritius.
Kotak Mahindra has partnerships with Goldman Sachs (one of the world's largest investment banks and brokerage firms), Ford Credit (one of the world's largest dedicated automobile financiers) and Old Mutual (a large insurance, banking and asset management conglomerate).
KARVY STOCKBROKING LIMITED
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Karvy offers a full range of financial services and products ranging from Equities to Research to enhance your wealth and hence achieve your financial goals.
Equities & Derivatives Comprehensive services for independent investors, active traders & NonResident Indians.
Karvy Research Premium research on all most all companies updated daily.
Depository Services Value added services for seamless delivery.
RELIANCE MONEY
Reliance Money is an Endeavour to change the way India trades in financial markets and avails of various financial services. Reliance Money ensures maximum security with a unique security token to keep your online account safe.
INDIAN STOCK EXCHANGES

List of Indian Stock Exchanges

'Exchange Building', MADRAS STOCK EXCHNAGE LTD. 11, Second Line Beach, Chennai - 600 001 MADHYA PRADESH STOCK EXCHANGE LTD. 67, Bada Sarafa, Indore - 452 002. Bihar Industries Assn. THE MAGADH STOCK EXCHANGE LTD. Premises, Sinha Library Road, Patna - 800 001. 1177, Budhwar Path, PUNE STOCK EXCHANGE LTD. Bank of Maharashtra Bldg., Bajirao Road, Pune 411 002. SAURASHTRA KUTCH STOCK EXCHANGE LTD., POPAT BHAI Rajkot - 380 002. Padam Towers, 14/113,Civil Lines, Kanpur - 208 001 101, Paradise Complex, VADODARA STOCK EXCHANGE LTD. Sayaji Gunj, Vadodara - 390 005. Chamber Tower, COIMBATORE STOCK EXCHANGE 8/732,Avvinashi Road, Coimbatore 641 018. Kingsway Building, MEERUT STOCK EXCHANGE LTD. 345, Bombay Bazaar, Meerut Cantonment - 250 001. Maker Towers "F" Cuffe OTC EXCHANGE OF INDIA. Parade, Bombay - 400 005. Mahindra Towers, THE NATIONAL STOCK EXCHANGE OF INDIA LTD. A-Wing, RBC, Worli, Mumbai 18
THE UTTAR PRADESH STOCK EXCHANGE ASSN. LTD.
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COMPANY PROFILE
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2.1) HISTORY OF ANGEL BROKING
Mr. Dinesh Thakkar Promoter and Managing Director
In a short span of 23 years since inception, The Angel Group has emerged as one of the 5 retail stock broking houses in India, having membership BSE, NSE and the two leading commodity exchanges in the country i.e. NCDEX and MCX. Angel Broking Ltd is also registered as a depository participant with CDSL.
The group is promoted by Mr. Dinesh Thakkar, who started this enterprise as a small sub-broker in 1987 with staff strength of 3 personnel. As on date, the group is managed by a team of 5900 + direct employees 15000 Indirect employee and a nationwide network comprising 21 Regional Hubs & 25 Distribution office , 164 branches, 5430 + registered sub brokers and business associates and 11997+ active trading terminals which cater to the requirements of 5.1 lakh + retail clients.
At Angel, It habitually generate value added features without the cost burden being passed onto the clients as we strongly believe that better understanding of clients needs and wants is our top priority. Our e-broking facility is one such effort, which gives you a platform to access state of art trading facility at the click of a button.
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INTRODUCTION TO ANGEL
In a shot span of 23 years since inception, the Angel Group has emerged as one of the top five retail stock broking houses in India, having membership of BSE, NSE and the two leading Commodity Exchanges in the country i.e. NCDEX & MCX. Angel Broking is also registered as a Depository Participant with CDSL.
Angel habitually generates value added features without the cost burden being passed on to the clients as they strongly believe that better understanding of clients needs and wants is their top priority. Their e -broking facility is one such effort, which gives the client a platform to access state of the art trading facility at the click of a button.
Angel has always strived for delivering customer delight and developing strong long term bonds with its clients as well as channel partners. Angel thrives on a vision to introduce new and innovative products and services constantly. Moreover, Angel has been among the pioneers to
introduce the latest technological innovations and integrate them efficiently within its business.
MANAGEMENT
Professional and highly experienced people headed by Mr. Dinesh Thakkar manage the group. He has 14 years experience in the field of stock broking. Mr. Lalit Thakkar with 10 years experience in the field of equities,research team and dependable operation team.
GROUP ACTIVITIES
Angel group has very well set research division managed by strong professional team. They provide fundamental as well as technical analysis to clients. They have subscribed to various software packages including cline 2000, Capita Clips, Trends, INFAC reports, CMIE reports fundamental package form internet securities etc. Angel Group has 165 Bolt terminals spread all over the country amongst its branches and sub-brokers Angel has K.K.PAREKH INSTITUTE OF MANAGEMENT STUDIES - AMRELI 35
expanded their might in to institutional broking segment also to provide the highest level of services to Indian financial institutions, banks, mutual funds and foreign institutional investors.
2.2) MISSION STATEMENT

The main mission statement of Angel broking Ltd. is to be on the top in and around Surat and peninsula with the help of retail, bulk business within three years.
2.3) VISION
To provide best value for money to investors through innovative products, trading/investments strategies, state of the art technology and personalized service.
2.4) BUSINESS PHILOSOPHY

Ethical practices & transparency in all our dealings Customer interest above our own Always deliver what we promise Effective cost management
Central Support & Registered Office:

G-1, Akurti Trade centre, Road No-7, MIDC, Marol, Andheri (E) Mumbai- 40093.
Corporate Office:
612, Acme Plaza, M.V.Road, Opp. Sangam Cinema, Andheri (E), Mumbai -4000059
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Angels Moto:
To have complete harmony between quality-in process and continuous improvement to deliver exceptional service that will delight our Customers and Clients.
Our CRM Policy: Customer is King

A Customer is the most Important Visitor on our premises. He is not dependent on us, but we are dependent on him. He is not an interruption in our work. He is the purpose of it. He is not an outsider in our business. He is part of it. We are not doing him a favour by serving him. He is doing us a favour by giving us an opportunity to do so.
- Mahatma Gandhi
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2.5) QUALITY ASSURANCE POLICY

We are committed to being the leader in providing World Class Product & Services which exceed the expectations of our customers Achieved by teamwork and a process of continuous improvement
2.6) Achievement
October,2009 Angel Broking begs the coveted Major Volume Driver Award by BSE for 2008-09
May,2009 Angel Broking wins two prestigious awards for Broking House with Largest Distribution Network and Best Retail Broking House at Dun & Bradstreet Equity Broking Awards
August,2008 Angel broking crosses 5,00,000 mark in unique trading accounts
November,2008 Angel Broking wins the esteemed Major Volume Driver Awards by BSE for 2007-2008
2.6) CORE COMPETENCE
Top quality research & portfolio advisory services for equities Retail focused research products Robust internet trading facility Commodities research & broking services Depository services through CDSL Web based 24 x 7 back office software Good understanding the sub-broker and retail customer needs Professional work culture with a personal touch 38
Cost effective processes State-of-the-art technology Streaming quotes & real time charts for BSE/NSE [cash / derivatives] Single connectivity and speedy execution of trades Private V-sat network for remote areas Online technical support & help desk
2.7) ORGANIZATIONAL STRUCTURE
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Angel Group Companies

Angel Broking Ltd. Member on the BSE and Depository
Participant with CDSL Membership on the NSE Cash and Futures & Options Segment
Angel Capital &Debt Market Ltd. Angel Commodities
Member on the NCDEX & MCX Broking Ltd. Angel Securities Ltd. Member on the BSE
Incorporated :1987 BSE Membership :1997 NSE membership :1998 Member of NCDEX and MCX Depository Participants with CDSL
Angels presence-
Nation- wide network of 21 regional hubs Presence 124 cities 6800 + sub brokers & business associates 5.9 lakh +clients
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2.9) PRODUCT OFFERED BY ANGEL

Angel Broking Ltd. Provides its best services by its products which represent the whole image of the mind of clients and those products are:
ANGEL
Offline Online
Angel Trade Angel Diet Angel Investor
OFFLINE
The Off-Line account is trading account through which one can buy and sell through his/her telephone or by personal visit at Angel shop.
This facility is for those who are not comfortable with computer and want to trade
ONLINE
The Online trading facilities provided by Angel is basically divided into three types i.e. Angel Diet, Angel Anywhere, and Angel Trade.
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Angel-DIET
Application based ideal for day traders User friendly & simple navigation Robust & Speedier execution of trade 5 segment BSE, NSE, F&O, MCX, and NCDEX Streaming quotes for continuous rates refresh MCX Currency Speedy execution of trade
Angel Trade
Browser based for investors No installation required Advantage of mobility Trading as simple as internet surfing 5 segment BSE, NSE, F&O, MCX, and NCDEX Real-time quotes MCX Currency
Angel Investor
Browser based platform for investor-simple as internet surfing Application based ideal for traders using technical tools Intraday / Historical charts with various indicators 5 segment BSE, NSE, F&O, MCX, and NCDEX MCX Currency Static quote refreshed
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Products of Angel Broking 1. Online Trading 2. Commodities 3. DP Services 4. Portfolio Management Services 5. Insurance 6. IPO Advisory 7. Personal loans 8. Quality assurance 9. Mutual Fund 10. Personal Loan
Service offered by Angel
E-BROKING SERVICES
On-line trading facilities on BSE/NSE (Cash & F&O), NCDEX, and MCX through our 3 unique e-trading software are especially designed for traders as well as investors.
Trading in securities / Commodities using the internet platform is a convenient option. We provide you an opportunity to trade on BSE / NSE (Cash & F&O), NCDEX, and MCX from the comfort of tour home or office.
Our internet trading platform gives you state-of-the-art trading facility, order and trade confirmation, e-contracts and 24x7 on-line web-enabled backoffice systems at the click of a button.
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Salient Features of Angel Trade

Multiple exchanges on a single screen :You online are trading on BSE / NSE (Cash and F&O), MCX and NCDEX on a single screen.
Speed :We use the latest technology to generate efficient uptime and greater stability to give you high speed.
Competitive brokerage rates :We believe in providing our clients the best value added services at the most competitive brokerage rates.
Online funds transfer :The clients enjoy the convenience of online transfer of funds from their bank accounts, to the margin account of Angel, online.
Off line services :You are free to make a telephone call to any of our 71 well equipped branches across the country.
Technology :Angel provides the latest infrastructure tools to support and integrate the backend and front office functionalities.
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E-CHOPDA SERVICES
On-line funds pay-in :Features Hassle free on-line payment. Facilitates ease in transfer of funds. 15 banks for on-line funds pay in. Time saver. Pay-out facility :Features On-line Payouts for instant receipt in your account. Purchasing time 24 hours. No cheque deposits. Quick clearance. Authenticity & security of funds. ECN (Electronic Control Notice) :Features Electronic Control Notice -Obtain your bills / Contracts on your register Email id. Easy Access Contract Notes available at click of a button.
WEB-ENABLED CENTRALIZED BACK-OFFICE

All the clients registered with Angel Group have a 24*7 access to our web enabled centralized software.
The clients can view their trade confirmation reports specific to BSE & NSE correspondingly for a specific day, view their ledger extracts and statements and analyze holding statement along with delivery report status,
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net position, margin and cash & non cash collateral related to the NSE F&O segment and evaluate profit and loss statement linked to the cash statement.
Centralized Help Desk Services :The angel group has commissioned a centralized help desk team at its corporate office under direct supervision of the cmd.
This team is available from 9:00a.m. to 7:00p.m. and it is empowered to resolve all your queries and complaints on an online basis.
The team is available either via the telephone (022) 2835 5000 or the email feedback@angelbroking.com.
Chat Facility :Angel provides chat facility to all its clients whereby they can solve their queries in an online manner with the help of our research analysts and other key personnel.
DEMAT SERVICES : Depository Participant
You must be aware that Angel Broking Ltd has started its depository services by registering with CDSL. There are various benefits of holding your demat account with us but the biggest advantage is that you shall be ensured of a risk free, prompt and efficient depository process. You will enjoy the following distinctive benefits by registering with us : No risk of loss, wrong transfer, mutilation or theft of share certificates. Reduced paper work.
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Speedier settlement process. Because of faster transfer and registration of securities in your account, increased liquidity of your securities. Instant disbursement of non-cash benefits like bonus and rights into your account. Efficient pledge mechanism. Wide branch coverage. Personalized / attentive services of trained help desk. Zero upfront payment. No charges for extra transaction statement & holding statement. All in one combined Monthly Bill -cum-Transaction-cum-Holding-cumledger statement
COMMODITIES
About Angel Commodities :-
ANGEL COMMODITIES BROKING (P) LIMITED promoted by ANGEL GROUP, started its operations in Indian commodities market by acquiring memberships in India's premier multi-commodity exchanges of NCDEX. ANGEL COMMODITIES offers trading opportunities in commodity markets through the chain of its branches spread across the country.
ANGEL COMMODITIES provides expert research / analysis to its clients in various commodities, listed in NCDEX and MCX including the international perspective of the commodities traded. It provides best technical analysis from desk of its trained and qualified analysts.
The team is capable of formulating trading strategies depending on risk-return profile of the client. Today we offer a gamut of financial products to satisfy an array of financial needs.
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Why trade with Angel Commodities?
Online application based trading software Online web based trading platform Online daily, weekly and monthly research Transparent and fair trade execution Individual client attention 24*7 online back office Training/education facilities / conduct of seminars State-of-the-art technology Digital contract notes cum bill: View your accounts from any Where, any time Efficient risk management
PERSONALIZED INVESTMENT ADVISORY SERVICE

Angel offers personalized Advisory services to Retail Clients to build their Wealth through long term investments in equities of fundamentally sound companies. Customers can seek guidance on stocks in their portfolio and can get proactive advice for timely entry and exit in thoroughly researched companies. We also provide our valuable customers with regular portfolio restructuring services based on sound Investment themes identified by our fundamental research team.
The research and advisory team at Angel continuously tracks, on an ongoing basis, each and every news that can have an impact on stock markets in general and Angels Universe of Stocks in particular. This is supported by timely updates on various stocks that we cover. We also come out with Angel Top Picks a list of fundamentally researched companies across sectors that one can invest in. This list is updated on a weekly basis and acts as a guide to investors with regards to
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various investment avenues (within equities) available in the current market scenario.
RESEARCH SERVICES
There are four types of research services provided by Angel Broking: (1) (2) (3) (4) Daily Services Fundamental Services Technical Services Commodities Services
The Angel Broking has a special research team for making qualitative research. The research is done for the purpose giving qualitative advice to their client, so that it can work as a helping hand for their client. The Angel Broking has software named Angel Anywhere that make graphical representation of different kind of scrips.
Daily Services
Market Outlook at 9:30 AM
A pre-market report that arms our clients with sensitive information before the opening bell. Key corporate developments, policy announcements, geo-political news and views are analyzed for their impact on the market.
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Technical Report at 6:00 PM
This report analyses trading patterns, historical background, market position of key stocks and offer short term (1 to 5 days) as well as medium term (10 to 20 days) views.
Derivative Analysis Report
The report provides FII activity in derivative segments, change in open interest, put call ratio, cost of carry of stock and index based derivative products. Our derivative analysts use the above tolls to project the movement during the next trading sessions
Fundamental Services
The Sunday Weekly Report
This weekly report is ace of all the reports. It offers a comprehensive market overview and likely trends in the week ahead. It also presents top picks based on an in-depth analysis of technical and fundamental factors. It gives short term and long term outlook on these scrips, their price targets and advice trading strategies. Another unique feature of this report is that it provides an updated view of about 70 prominent stocks on an ongoing basis.
The Industrial Watch
This report provides an in-depth look at specific industries which are likely to outperform others in the economy. It analyses their strength and weaknesses and ascertains their future outlook. The final view is arrived at after thorough interaction with industry experts.
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Stock Analysis Angels stock research has performed very well over the past few years and angel model portfolio has consistently outperformed the benchmark indices. The fundamentals of select scrips are thoroughly analyzed and actionable advice is provided along with investment rationale for each scrip. Flash News
Key developments and significant news announcement that are likely to have an impact on market / scrips are flashed live on trading terminals. Flash news keeps the market men updated on an online basis and helps them to reshuffle their holdings.
Technical Services
Intra-day Calls For day traders angel provides intraday calls with entry, exit and stop loss levels during the market hours and our calls are flashed on our terminals. Our analysts continuously track the calls and provide the recommendations according to the market
movements. Past performance of these calls in terms of profit/loss is also available to our associates to enable them to judge the success rate.
Posting Trading Calls Angels Position Trading Calls are based on a through analysis of the price movements in selected scrips and provides calls for taking positions with a 10 - 15 days time span with stop losses and targets. These calls are also flashed on our terminals during market hours.
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Derivative strategies
Our analyst take a view on the NIFTY and selected scrips based on derivatives and technical tools and devise suitable Derivative Strategies, which are flashed on our terminals and published in our derivative reports.
Commodities Services
Agro Tech Speak Mainly gives the investors insight into and a forecast for agro commodities viz. pulses (urad channa etc); reports on oil complex (soyabean castor etc.) along with spices with reports on kapas guar seed.
Call Evaluation
A report designed for evaluating the calls given by the angel research team where the reports are classified in 3 broad categories viz. achieved, triumph, not achieved along with the trade recommendations Commodities Tech Speak
This report mainly equips the investors dealing in MCX segment in commodities like gold, silver, crude oil, copper etc with the market insight and expert recommendation on the trading strategies.
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PORTFOLIO MANAGEMENT SERVICES

Angel model portfolio was first launched in the year 2002. Since then 5 model portfolio have been launched. The model portfolio has consistently outperformed the SENSEX by 80 % each time. Portfolio construction & advice is based on the principle of value investing.
Angel Gold
In a volatile market it is very difficult for an investor to pick up value stocks which will give decent returns in the long run. We at Angel Gold realize your need for a professional financial advisor and hence are here to assist you in making VISE and profitable decisions.
We strongly believe that right decisions taken at the right time are always beneficial and that's why our entire research team comprising of 12 sector specialists along with our research head will understand your need, return expectation, risk profile and time horizon to design your portfolio accordingly. This portfolio will be tracked regularly and our efforts would be to optimize your returns in the long run.
2.10) Overview of Department

BIRD'S EYE VIEW OF DIFFERENT DEPARTMENTS An Angle Broking Ltd. Has different department like other firms. It has mainly two departments which are as follows:
Trading department DP department
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TRADING DEPARTMENT
Introduction Angel is one of the broker who is acting as wholesalers and as a broker it is the duty of it to provide service of collecting funds and securities from the investors and send it to clearing house respectively for this an account is to be opened i.e. Trading Account. According to SEBI investor has to open trading account, he can open an account in any depository but investor should not be partnership firm or proprietorship firm.
Trading department is again divided into three parts: Pre-trading Trading Post-trading
(1) Pre-trading department Any person who wants to open a trading account first of all pre-trading activity is done which include:
Account opening Deposits Complaint
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PROCEDURE FOR OPENING TRADING ACCOUNT

1. first client will ask for opening trading account 2. The Angel will give proof details and client will have to fill up form and submit to Angel with documents required 3. collection of form from the client 4. checking of the form 5. scanning of the form 6. This form will be dispatch to Head Office 7. Angel branch will have collection of code by E-mail or manually. 8. Now Angel office informs client or sub-broker through phone or E-mail about Internet Id. 9. Now Client will be able to trade through accessing
www.angeltrade.com or application software
Trading Account proof

Following are the proof required for opening trading account.
Client master copy (DP proof) Pan card for photo proof/form-60 Any one from Part-A Any one from Part-B
(2) Trading department After pre-trading next comes trading which include:
Dealing room Sauda punching Confirmation
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Dealing Room
Dealing room is the place where dealing of various securities is done which includes: NSE Cash BSE Cash NSE Derivatives
TRADING IN NSE, BSE AND DERIVATIVES
TREADING
BSE
NSE
CASH MARKET
CASH MARKET
DERIVATIVE MARKET
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(3) Post Trading

Payout process Bills Pay-in-process Contract note
Introduction
After completion of trading the further process is done through this department. It handles two processes which are known as pay-in and pay-out process. Further description is given below.
Pay-Out-Process
When transaction is done between the two members of same DP then it is called internal pay out process, but it can be known only after 4 oclock when trading gets over. It can be known that whether the transaction is done internally or not. Otherwise all the transactions are done through only. Now if the situation arises in which one of the member of DP has sold a definite quantity of shares, but against which no one has purchased the same amount of quantity of shares belonging to same company then the whole lot will go to the exchange. On the other hand if one of the parties has bought comparatively less quantity than sold by another party then it is called shortfall of shares.
Now let us understand the above concept with the help of a practical example. Suppose, one of the members of Angel in SURAT has sold 700 shares of Reliance Ltd., but against which member of Angel at Mumbai branch has purchased only 300 shares of the same company then it is called SHORTFALL.
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Now, after the closing of trading activity (i.e. after 4 o'clock) Exchange will prepare a shortfall report & this will be directly sent to H.O.Now, department will prepare a summary from the report. After that if DP has access then dealing will be done internally otherwise auction will be done by exchange in which exchange will purchase or sell shortfall of shares from the market. Payout process mainly indicate access amount to be paid by DP i.e. when purchase of share is comparatively higher than selling.
Bills
In the same way Angel HO will prepare bill of clients name and this will be send to the respective branches to different places and now branches would be dispatching to their respective clients.
Pay In Process
Now if we look from the other side the same concept, then it is called Pay in Process. In this process if selling is done comparatively higher than purchase, then DP will earn i.e. DP will get relatively more amount against which it has to pay fewer amounts. In both the transaction i.e. pay in and Pay out transaction the payment will be done through cheques only.
Contract note
Contract note is a confirmation of trades done on a particular day for and on behalf of client. Angel shall issue a contract note to his client for trades (purchase/sale of securities) executed with all details as required therein to be filled in (refer to SEBI circular no. SMD/SED/CIR/23321 dated June 8, 2005). A contract note shall be issued to a client within 24 hours of the execution of the contract duly signed by the TM or his authorized signatory or client attorney.
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DP DEPARTMENT
Depository An Organization
A depository is an organization where the securities of investors are held in electronic form. Investors open an account in the depository system through a Depository Participant and hold securities in that account. There are two depositories in India which are National Securities Depository Ltd. (NSDL) And Central Depository Service Ltd. (CDSL).
Depository system is quite similar to a banking system. If an investor wants to utilize the service offered by a depository, he/she has to open an account with the depository through a DEPOSITORY PARTICIPANT. This can be compared to the opening of an account with any of the branches of a bank in order to utilize the services of the bank.
A depository may be defined as facilities of holding securities in the electronic form that means without holding any certificates in physical form and which subsequently enable securities transaction to be processed by electronic book entry system, without movement of papers.
A Depository facilitates holding of securities in the electronic form and enables securities transactions to be processed by book entry by a Depository Participant (DP). Who as an agent of the depository, offers depository services to investors. According to SEBI guidelines, financial institutions, banks custodians, stock brokers etc.are eligible to act as DPs.The investor who is known as Beneficial Owner has to open a Demat account through any DP for dematerialization of his holdings and transferring securities.
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ROLE OF DP
A depository is an organization firm to provide electronic depository facilities for securities traded. Securities are then held in the electronic form though the medium of DP. The NSDL is the first depository of India. The functions of NSDL are regulated by the Securities and Exchange control board of India (SEBI).
The Depository is not just another custodian. The Depository can legally transfer beneficial ownership, which a custodian can not. The chief objective of a depository is to reduce risk by minimizing the paper work involved in trading, settlement and transferring securities.
To utilize the services offered by a depository, you must open an account with the depository through a DP. The DPs are the link between the shareholders and the company and NSDL.
Banks, financial institutions custodians and stock brokers can become DPs subject to their meeting certain requirement prescribed by NSDL and SEBI. NSDL publishes the list of DPs registered with them from time to time.
You can ever have a zero balance in your account.
TYPES OF DEPOSITORY ACCOUNT

To avail the various services offered by CDSL an investor or a broker or an approved intermediary has to open a CDSL depository account. Depository accounts are three types:
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Beneficiary Account:
An investor or a broker who wants to hold shares on dematerialized form and undertake script less trading must have depository account called Beneficial Owner account (BO) with a DP of his choice.
Clearing Member Account:

Member brokers of the stock exchange which have established electronic connectivity with CDSL need to open a clearing member account with a DP of his choice to clear and settle trades in the Demat form. This account is meant to transfer shares and receive shares for the clearing corporation/house. Hence, the member broker does not have any ownership rights over the shares running held in such n account.
Intermediary Account:
Ay person desiring to act as an approved intermediary account with any DP office choice. An intermediary account may be open with the DP only after the intermediary has obtained registration from Securities and Exchange board of India and with the prior approval of the CDSL. This account is meant only to deposit the securities receive from the lender and borrowing scheme. The intermediary does not have any ownership right over the shares held in such account.
Dematerialization of security
According to the Depositories Act 1996, an investor has the option to hold shares either in physical or electronic form. Now ever, SEBI has notified that settlement of trade in almost all securities should have the Demat mode. Although, trades up to 500 shares can settled in physical form, physical settlement is virtually not taking place for apprehension of bad delivery on account of mismatch of signatures, forgery of signature, fake certificate etc.
Only that security can be Dematerialize whose owner company has registered itself for CDSL service. Shareholder can request its owned
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company to register itself with CDSL if it is not registered only after that security can be dematerialized.
Pledging
Major benefit of the Demat account and holding security in Demat form is that you can put this certificate on pledge and you can get loan on it. E.g. If you have a Demat account with RNSB then you will get loan either from this bank or you will get from other institutions. The person who applied for the loan is called ledger and one need to have Demat account with CDSL. Pledge puts once security under the pledge it can not use for other purpose. These securities pledged are moved from Free Balance to Pledged Balance.
2.11) Overview of Derivative Market

The origin of derivatives can be traced back to the need of farmers to protect themselves against fluctuations in the price of their crop. From the time it was sown to the time it was ready for harvest, farmers would face price uncertainty. Through the use of simple derivative products, it was possible for the farmer to partially or fully transfer price risks by locking-in asset prices. These were simple contracts developed to meet the needs of farmers and were basically a means of reducing risk.
On the other hand, a merchant with an ongoing requirement of grains too would face a price risk - that of having to pay exorbitant prices during dearth, although favorable prices could be obtained during periods of oversupply. Under such circumstances, it clearly made sense for the farmer and the merchant to come together and enter into a contract whereby the price of the grain to be delivered in September could be decided earlier. What they would then negotiate happened to be a futures-type contract, which would enable both parties to eliminate the price risk.
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In 1848, the Chicago Board of Trade, or CBOT, was established to bring farmers and merchants together. A group of traders got together and created the `to-arrive' contract that permitted farmers to lock in to price upfront and deliver the grain later. These to-arrive contracts proved useful as a device for hedging and speculation on price changes. These were eventually standardized, and in 1925 the first futures clearing house came into existence. Derivative products initially emerged as hedging devices against fluctuations in commodity prices, and commodity-linked derivatives remained the sole form of such products for almost three hundred years. Financial derivatives came into spotlight in the post-1970 period due to growing instability in the financial markets. However, since their emergence, these products have become very popular and by 1990s, they accounted for about two-thirds of total transactions in derivative products. In recent years, the market for financial derivatives has grown tremendously in terms of variety of instruments available, their complexity and also turnover. In the class of equity derivatives the world over, futures and options on stock indices have gained more popularity than on individual stocks, especially among institutional investors, who are major users of index-linked derivatives.
Even small investors find these useful due to high correlation of the popular indexes with various portfolios and ease of use. The lower costs associated with index derivatives vis--vis derivative products based on individual securities is another reason for their growing use.
Derivatives defined
Derivative is a product whose value is from the value of one or more basic variables, called bases (underlying asset, index, or reference rate), in a contractual manner. The underlying asset can be equity, forex, commodity or any other asset.
For example, wheat farmer may wish to sell their harvest at a future date to eliminate the risk of a change in prices by that date. Such a
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transaction is an example of a derivative. The price of this derivative is driven by the spot price of wheat which the underlying.
In the Indian context the Securities Contracts (Regulation) Act, 1956 defines derivative to include
1. A security derived from a debt instrument, share, loan whether secured or unsecured, risk instrument or contract for differences or any other form of security.
2. A contract which derives its value from the prices, or index of prices, of underlying securities.
Derivative products :Derivative contracts have several variants. The most common variants are forwards, futures, options and swaps. We take a brief look at various derivatives contracts that have come to be used.
Forwards :A forward contract is a customized contract between two entities, where settlement takes place on a specific date in the future at todays pre agreed price.
Futures :A futures contract is an agreement between two parties to buy or sell an asset at a certain time in the future at a certain price. Future contracts are special types of forward contracts in the sense that the former are standardized exchange-traded contracts.
Options :Options are of two types calls and puts. Calls give the buyer the right but not the obligation to buy a given quantity of the underlying asset, at a
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given price on or before a given future date. Puts give the buyer the right, but not the obligation to sell a given quantity of the underlying asset at a given price on or before a given date.
Warrants :Options generally have lives of upto one year; the majority of options traded on options exchanges having a maximum maturity of nine months. Longer- dated options are called warrants and are generally traded over-thecounter.
Leaps :The acronym LEAPS Long-Term Equity Anticipation Securities. These are options having a maturity of upto three years.
Baskets :Basket options are options on portfolios of underlying assets. The underlying asset is usually a moving average of a basket of assets. Equity index options are a form of basket options.
Swaps :Swaps are private agreements between two parties to exchange cash flows in the future according to a prearranged formula they can be regarded as portfolios of forward contracts. The two commonly used swaps are: Interest rate swaps These entail swapping only the interest related cash flows between the parties in the same currency Currency swaps: These entail swapping both principal and interest between the parties, with the cash flows in one direction being in a different currency than those in the opposite direction.
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Swaptions :Swaptions are options to buy or sell a swap that will become operative at the expiry of the options. Thus a swaption is an option on a forward swap. Rather than have calls and puts, the Swaptions market has receiver Swaptions and payer Swaptions. A receiver swaption is an option to receive fixed and pay floating. A payer swaption is an option to pay fixed and receive floating.
Products, participants and functions :Derivative contracts are of different types. The most are forwards, futures, options and swaps. common ones
Participants who trade in the
derivatives market can be classified under the following three broad categories - hedgers, speculators, and arbitragers.
Hedgers :The farmer's example that we discussed about was a case of hedging. Hedgers face risk associated with the price of an asset. They use the futures or options markets to reduce or eliminate this risk.
Speculators :Speculators are participants who wish to bet on future movements in the price of an asset. Futures and options contracts can give them leverage; that is, by putting in small amounts of money upfront, they can take large positions on the market. As a result of this leveraged speculative position, they increase the potential for large gains as well as large losses.
Arbitragers :Arbitragers work at making profits by taking advantage of discrepancy between prices of the same product across different markets. If, for example, they see the futures price of an asset getting out of line with the cash price, they would take offsetting positions in the two markets to lock in the profit.
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Types of Derivative Market

Derivative contracts are of different types. The four important types of derivatives are: a. Forward contract b. Futures c. Options d. Swap The difference between a share and derivative is that shares/securities are an asset while derivative instrument is a contract. Futures and options can be traded on stock exchanges. Let us discuss each of these in greater depth. However as mentioned earlier, for understanding future contract, it is necessary to understand about forward contract. So, first of all we discussed about the forward contracts
Forward Contracts :A forward contract is an agreement to buy or sell an asset on a specified date for a specified price. One of the parties to the contract assumes a long position and agrees to buy the underlying asset on a certain specified future date for a certain specified price. The other party assumes a short position and agrees to sell the asset on the same date for the same price. Other contract details like delivery date, the parties to the contract negotiate price and quantity bilaterally. The forward contracts are normally traded outside the exchanges.
The salient features of forward contracts are : They are bilateral contracts and hence exposed to counter party risk. Each contract is custom designed, and hence is unique in terms of contract size, expiration date and the asset type and quality. The contract price is generally not available in public domain. On the expiration date, the contract has to be settled by delivery of the asset.
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If the party wishes to reverse the contract, it has to compulsorily go to the same counter-party, which often results in high prices being charged.
However
forward
contracts
in
certain
markets
have
become
very
standardized, as in the case of foreign exchange, thereby reducing transaction costs and increasing transactions volume. This process of standardization reaches its limit in the organized futures market.
Limitations of forward markets : Forward markets world-wide are affected by several problems: Lack of centralization of trading Illiquidity Counterpart risk
Futures Contracts :Futures markets were designed to solve the problems that exist in forward markets. A futures contract is an agreement between two parties to buy or sell an asset at a certain time in the future at a certain price. But unlike forward contracts, the futures contracts are standardized and exchange traded. To facilitate liquidity in the futures contracts, the exchange specifies certain standard features of the contract. It is a standardized contract with standard underlying instrument, a standard quantity and quality of the underlying instrument that can be delivered, (or which can be used for reference purposes in settlement) and a standard timing of such settlement. A futures contract may be offset prior to maturity by entering into an equal and opposite transaction. More than 99% of futures transactions are offset this way.
The standardized items in a futures contract are: Quality of the underlying Quantity of the underlying
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The date and the month of delivery The units of price quotation and minimum price change Location of settlement
Pricing Futures :The theoretical price of a futures contract is spot price of the underlying plus the cost of carry. Please note that futures are not about predicting future prices of the underlying assets. In general, Futures Price = Spot Price + Cost of Carry The Cost of Carry is the sum of all costs incurred if a similar position is taken in cash market and carried to expiry of the futures contract less any revenue that may arise out of holding the asset. The cost typically includes interest cost in case of financial futures (insurance and storage costs are also considered in case of commodity futures). Revenue may be in the form of dividend. Though one can calculate the theoretical price, the actual price may vary depending upon the demand and supply of the underlying asset.
Advantages and risks of trading in futures over cash :The biggest advantage of futures is that you can short sell without having stock and one can carry your position for a long time, which is not possible in the cash segment because of rolling settlement. Conversely you can buy futures and carry the position for a long time without taking delivery, unlike in the cash segment where you have to take delivery because of rolling settlement. Further futures positions are leveraged positions. By using you can take a Rs100 position by paying Rs25 margin and daily mark-to-market loss, if any. This can enhance the return on capital deployed. For example, you expect a Rs100 stock to go up by Rs10. One way is to buy the stock in the cash segment by paying Rs100. So, one make Rs10 on investment of Rs100, giving about 10% returns. Alternatively he/she take futures position in the stock by paying about Rs30 K.K.PAREKH INSTITUTE OF MANAGEMENT STUDIES - AMRELI 70
toward initial and mark-to-market margin and by using future he/she make Rs10 on investment of Rs30, i.e. about 33% returns. However, taking leveraged position is very risky. One can even lose his/her full capital in case the price moves against your position.
Options :Options are fundamentally different from forward and futures contracts. An option gives the holder of the option the right to do something. The holder does not have to exercise this right. In contrast, in a forward or futures contract, the two parties have committed themselves to doing something. Whereas it costs nothing (except margin requirements) to enter into a futures contract, the purchase of an option requires an up front payment.
The understanding of the following terms would make the concept of Option easy to understand.
Commodity options :Commodity options are options with a commodity as the underlying. For instance a gold options contract would give the holder the right to buy or sell a specified quantity of gold at the price specified in the contract.
Stock options :Stock options are options on individual stocks. Options currently trade on over 500 stocks in the United States. A contract gives the holder the right to buy or sell shares at the specified price.
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There are two basic types of options, call options and put options.
Call option :A call option gives the holder the right but not the obligation to buy an asset by a certain date for a certain price.
Put option :A put option gives the holder the right but not the obligation to sell an asset by a certain date for a certain price.
2.12) Overview Of commodity Market :Commodity is defined as any bulk good traded on an exchange or in the cash market. One of the first forms of trade between individuals began by what is called the barter system wherein goods were traded for goods. Lack of a medium for exchange was the sole initiator of this system. Animals were the first few commodities to be exchanged. Some examples of commodities include grain, oats, gold, oil, beef, silver, and natural gas.
In these intervening years, some regional exchanges specializing in specific commodities, where the bans were lifted, have carried on the baton. Also large informal trading, primarily by the speculative segment of the universe of market participants has remained. This has led to a mindset in the common man in the country that commodity exchanges are purely speculative in nature.
Evolution of Commodity Market in India

India has a long history of futures trading in commodities. In India, trading in commodity futures has been in existence from the nineteenth
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century with organized trading in cotton, through the establishment of Bombay Cotton Trade Association Ltd. in 1875. Bombay Cotton Exchange Ltd. was established in 1893 following the widespread discontent amongst leading cotton mill owners and merchants over functioning of Bombay Cotton Trade Association.
The Futures trading in oilseeds started in 1900 with the establishment of the Gujarati Vyapari Mandali, which carried on futures trading in groundnut, castor seed and cotton.
Futures trading in wheat were existent at several places in Punjab and Uttar Pradesh. But the most notable futures exchange for wheat was chamber of commerce at Hapur set up in 1913. Futures trading in bullion began in Mumbai in 1920. Calcutta Hessian Exchange Ltd. was established in 1919 for futures trading in raw jute and jute goods.
But organized futures trading in raw jute began only in 1927 with the establishment of East Indian Jute Association Ltd. These two associations amalgamated in 1945 to form the East India Jute & Hessian Ltd. to conduct organized trading in both Raw Jute and Jute goods.
There were booming activities in this market and at one time as many as 110 exchanges were conducting forward trade in various commodities in the country. The securities market was a poor cousin of this market as there were not many papers to be traded at that time.
Downfall :The era of widespread shortages in many essential commodities resulting in inflationary pressures and the till towards socialist policy, in which the role of market forces for resource allocation got diminished, saw the decline of this market since the mid-1960s. This coupled with the regulatory
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constraints in 1960s, resulted in virtual dismantling of the commodities future markets. It is only in the last decade that commodity future exchanges have been actively encouraged. However, the markets have been thin with poor liquidity and have not grown to any significant level.
Indian Policy makers have traditionally coped with the uncertainty and risks associated with price volatility by resorting to policy instruments which attempted to minimize or eliminate price volatility - a virtually closed external trade regime, price control, pervasive government controls on private sector activities extensive market interventions and crop insurance.
The Rising :Liberalization of Indian economy since 1991 recognized the role of market and private initiative for the development of the economy. The much maligned market instruments such as the futures trading were also given due recognition. After some halting efforts since 1994 when Prof. Kabra Committee submitted its report, the late 1990s spilling into the new millennium, saw some bold initiatives in the commodity market.
The year 2003 marked the real turning point in the policy framework for commodity market when the government issued notifications for withdrawing all prohibitions and opening up forward trading in all the commodities. This period also witnessed other reforms, such as, amendments to the Essential Commodities Act, Securities (Contract) Rules, which have reduced
bottlenecks in the development and growth of commodity markets. Of the country's total GDP, commodities related (and dependent) industries constitute about roughly 50-60 %, which itself cannot be ignored.
Most of the existing Indian commodity exchanges are single commodity platforms; are regional in nature, run mainly by entities which trade on them resulting in substantial conflict of interests, opaque in their functioning and
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have not used technology to scale up their operations and reach to bring down their costs.
But with the strong emergence of: National Multi-commodity Exchange Ltd., Ahmedabad (NMCE), Multi Commodity Exchange Ltd., Mumbai (MCX), National Commodities and Derivatives Exchange, Mumbai (NCDEX), and National Board of Trade, Indore (NBOT), all these shortcomings will be addressed rapidly. These exchanges are expected to be role model to other exchanges and are likely to compete for trade not only among themselves but also with the existing exchanges.
Commodity Exchanges in India :1. National Multi Commodities Exchange of India Limited (NMCE) 2. National Commodities and Derivatives Exchange of India Limited (NCDEX) 3. Multi Commodities Exchange of India Limited (MCX)
(1) National Multi Commodities Exchange of India Limited:

NMCE is the first de-mutualized, Electronic Multi-Commodity Exchange in India. National Multi-Commodity Exchange of India Limited is committed to provide world class services of On-line screen based Futures Trading of permitted commodities and efficient Clearing and guaranteed settlement, while complying with Statutory / Regulatory requirements. We strive to ensure improvement of customer services and remain quality leader amongst all commodity exchanges. NMCE seeks to Integrate the physical markets for commodities with the derivative markets Provide more authentic, efficient price discovery and more efficient price risk management to producers, stockiest, processors, importers, exporters and other market participants.
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On 25th July 2001, the NMCE has been granted in-principle approval by the Government to organize futures trading in the edible oil complex. The Exchange is operationalised from November 26, 2002. NMCE has garnered support from major institutions like Central Warehousing Corporation, NAFED, National Institute of Agricultural Marketing, Gujarat Agro Industrial Corporation Ltd., Gujarat State Agricultural Marketing Board, besides Neptune Overseas Limited. Recognition of NMCE by the Government of India in October 2002 is one of the most important events in commodity markets reforms in India. NMCE follows best international risk management practices. The contracts are marked to market on daily basis. The system of upfront margining based on Value at Risk is followed to ensure financial security of the market. In the event of high volatility in the prices, special intra-day clearing and settlement is held
Timing :10 A.M to 11:30 P.M on Monday to Friday & 10 A.M. to 2 P.M. on Saturday
(2) National Commodity and Derivatives Exchange Ltd. (NCDEX)

NCDEX is a public limited company incorporated on April 23, 2003 under the Companies Act, 1956. It obtained its Certificate for Commencement of Business on May 9, 2003. It has commenced its operations on December 15, 2003. NCDEX is a nation-level, technology driven demutualized on-line commodity exchange with an independent Board of Directors and
professionals not having any vested interest in commodity markets. It is committed to provide a world-class commodity exchange platform for market
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participants to trade in a wide spectrum of commodity derivatives driven by best global practices, professionalism and transparency.
NCDEX is regulated by Forward Market Commission in respect of futures trading in commodities. Besides, NCDEX is subjected to various laws of the land like the Companies Act, Stamp Act, Contracts Act, Forward Commission (Regulation) Act and various other legislations, which impinge on its working.
Commodities Traded at NCDEX

Agriculture :Barley, Cashew, Castor Seed, Chana, Chilli, Coffee - Arabica, Coffee Robusta, Crude Palm Oil, Cotton Seed Oilcake, Expeller Mustard Oil, Groundnut (in shell), Groundnut Expeller Oil, Guar gum, Guar Seeds, Gur, Jeera, Jute sacking bags, Indian Parboiled Rice, Indian Pusa Basmati Rice, Indian Traditional Basmati Rice, Indian Raw Rice, Indian 28.5 mm Cotton, Indian 31 mm Cotton, Masoor Grain Bold, Medium Staple Cotton, Mentha Oil, Mulberry Green Cocoons, Mulberry Raw Silk, Mustard Seed, Pepper, Potato, Raw Jute, Rapeseed-Mustard Seed Oilcake, RBD Palmolein, Refined Soy Oil, Rubber, Sesame Seeds, Soyabean, Sugar, Yellow Soybean Meal, Tur, Turmeric, Urad, V-797 Kapas, Wheat, Yellow Peas, Yellow Red Maize.
Metals :Aluminum Ingot, Electrolytic Copper Cathode, Gold, Mild Steel Ingots, Nickel Cathode, Silver, Sponge Iron, Zinc Ingot.
Energy :Brent Crude Oil, Furnace Oil.
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Polymers :Linear Low Density Polyethylene, Polypropylene, Polyvinyl Chlorine
Timing :10 A.M to 11:30 P.M for all Commodities & Gold, Silver, Cotton and Soya only on Monday to Friday & 10 A.M. to 2 P.M. on Saturday.
(3) Multi Commodity Exchange

MCX is an independent and de-mutualized multi commodity exchange. It was inaugurated on November 10, 2003 by Mr. Mukesh Ambani, Chairman and Managing Director, Reliance Industries Ltd.; and has permanent recognition from the Government of India for facilitating online trading, clearing and settlement operations for commodities futures market across the country.
Today, MCX features amongst the world's top three bullion exchanges and top four energy exchanges.MCX offers a wide spectrum of
opportunities to a large cross section of participants including producers/ processors, traders, and corporate, regional trading center, importers, exporters, co-operatives and industry associations amongst others.
Headquartered in the financial capital of India, Mumbai, MCX is led by an expert management team with deep domain knowledge of the commodities futures market. MCX holds more than 55% market share of the total trading volume of all Being a the nation-wide domestic commodity commodity exchange having exchanges. state-of-the-art
infrastructure, offering multiple commodities for trading with wide reach and penetration, MCX is well placed to tap the vast potential poised by the commodities market.
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Key Shareholders : Financial Technologies (I) Ltd. State Bank of India, National Bank for Agriculture and Rural Development
(NABARD), National Stock Exchange of India Ltd. (NSE), Fid Fund (Mauritius) Ltd. Corporation Bank, Union Bank of India, Canara Bank, Bank of India, Bank of Baroda, HDFC Bank SBI Life Insurance Co. Ltd.
Commodities traded at MCX Bullion :Gold, Gold HNI, Gold M, I- Gold, Silver, Silver HNI, Silver M, Oil & Oil seeds, spices, Metal, Fiber, Pulses, Cereals, Energy, Plantation, Petrochemical,
Exchange Timing & Commodities Traded at MCX :Timing: 10 A.M to 5 P.M for all Commodities & 5.50 P.M to 11.30 P.M for Gold, Silver, Cotton and Soya only on Monday to Friday 10 A.M. to 2 P.M. on Saturday.
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FOUR FUNCTIONAL AREA
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MARKETING DEPARTMENT
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PRODUCT & SERVICE DETAILS AND PORTFOLIO

REPORTS : Market Outlook at 9:15 a.m. Technical Report at 6:00 p.m. Derivative Analysis Report at 9:15 a.m.
FUNDAMENTAL RESEARCH SERVICES : The Sunday Weekly Report The Industry Watch Stock Analysis Flash News TECHNICAL RESEARCH SERVICE : Nifty Tracker Online Chart Intraday Calls Position Calls Derivative Strategies Futures Calls INVESTMENT ADVISORY DESK : ANGEL GOLD :-
COMMODITIES SERVICES : Agro Tech Speak Call Evaluation Commodities Tech Speak
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MUTUAL FUND DISTRIBUTION AND ADVISORY : IPO DISTRIBUTION AND ADVISORY :-
5 PS FOR ANGEL PRODUCTS :1. Product Features of Angel Products 2. Positioning USP, Product Segment, Target Customers 3. Packaging Marketing Material, Client Benefits 4. Placement Distribution Channel, Marketing Strategies 5. Promotion Activities to be carried out 1. PRODUCT - Features of Angel Products :-
A premium service for clients who needs professional guidance on short and long term investments. Brokerage of 0.06p. for intra day and 0.30p. for delivery based trading. 50% sharing of brokerage in case of Sub-brokers clients. Shares can be kept in Angel pool or can be transferred to the respective DP accounts. Intimation regarding transaction will be given to clients by evening of the day of transaction. Profits can be redeemed or re-investing based on clients wish. Existing client account can be used for Angel Products. Clients can do there own transactions in the same account as well. Periodic meetings will be held in the branches.
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2. POSITIONING Angel Products are positioned as an equity investment option for all those investors who aim for realistic return from equity as an asset class. It is for the investor who wishes to seek professional advice for their investments.
Unique selling Preposition (USP) : A strong team of 11 sector specific analysts headed by Research director guiding the investments. A low cost solution for investing. Product Segment : Angel Products are for the people who fall in middle class higher middle class section of the society. People who are not risk averse and can understand the return benefits vis--vis calculated risk taken. People who are new entrant to the equity markets. Target Customers : Young professionals. Middle aged professionals considering traditional ways of investing i.e. FDs, PPF, gold, bonds, etc. Small scale businessmen who are not risk averse and will understand the importance of reasonable returns. A retired person who have taken hefty VRS or has savings of which 2025% can be invested in equities.
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3. PACKAGING A Client of Angel Product will be regularly updated about the stocks and there performance by Advisory department. Monthly newsletter will be issued by the Desk and Regular meetings also will be conducted at the branches. A marketing kit will have Angel Products broacher, performance report FAQs, Consent letter and KYC forms.
4. PLACEMENT Distribution Channel Bright marketing persons should be used for this product. Product Training along with some investment ideas will be provided to personnel Existing B2C as well as B2B channels can be explored. Proper data mining and segmentation should be the basis of marketing Marketing Strategies The primary marketing strategy for all products is low brokerage charges. Low cost is the basis for attracting the customers. Another marketing strategy is the corporate scheme of Angel which does not charge any fees for opening trading account if there are more than 10 persons opening account in a group.
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5. PROMOTION Fundamental workshops to be conducted at the branch on weekends. Promotional activities such as stalls and exhibitions to be held at select housing colonies, clubs and companies. Free SMS service. Here a client will receive our fundamental calls free of cost for a limited period. Distribution of Angel Pamphlets to target customers Attracting the customers through Canopy marketing Promotional activities are also carried out through Investor Camp
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OPERATION DEPARTMENT
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COMPANY LOCATION :The location problem is an important strategic level decision making for an organization. The selection of location is a key decision as large investment is made. It is not advisable or sometimes not possible to change the location very often. So an improper location may lead to waste of all the investments. The location of the company is based on companys expansion plan and policy, changing market conditions. First stage selection of a region: this refers to the selection of a particular geographical zone taking into consideration such factors as nearness to market.
Second stage- selection of a community: this refers to the selection of the specific locality within the region. The factors that influence the selection of community are community attitude and service facilities.
Third stage- selection of specific site: this refers to the selection of specific site within the community. The factors that influence the site location are the cost of the land, availability and suitability of the land.
The factors that the Company considered while selecting location are: Infrastructure facilities Availability of power Community attitude Municipal and other Civil amenities
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LAYOUT :Layout refers to physical arrangement of facilities. It is the configuration of departments, work centers; etc.The primary goal of layout is to maximize the profit by arrangement of all facilities to the best advantage.
The Company has divisions such as: Branch Managers Cabin Conference Room Trading Rooms Back Office Risk Management Desk KYC (Know Your Client) Desk IT Division The Branch Managers Cabin and the Conference Room are near to each other so that conference can be held immediately when required. The two Trading Rooms are placed together so that any problem during the trading sessions can be handled easily.
The Back Office, Risk Management Desk and KYC Desk are placed in a line so that they can communicate whenever required and the queries of the customer can be solved. The IT Division is kept separately with server and all the necessary connections.
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PLANNING AND CONTROLLING :Planning is useful for effective utilization of resources, to achieve organization goal and objectives with respect to quality service, cost control and timely service. Other objective is to co-ordinate with other departments to ensure continuous quality service.
There is proper planning of how various activities would be carried out like opening of account, dealing while trading sessions, issuing contract notes, etc.
There is also co-ordination among various divisions like back office, Risk Management Desk, KYC Desk, etc so that proper service can be provided to customers.
MAINTENANCE :Maintenance of facilities in good working condition is essential to achieve desired levels. If, the company ignore the maintenance than they have to pay heavy price. The Company has designed the Quality Assurance Policy which maintains the service of the Company as per the desire level of the customer.
The Quality Assurance Policy helps the Company to fulfill the expectations of the customers and retain them.
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PROCUREMENT :As Angel Broking is the Service Sector Industry, so procurement of computer machinery and other useful stationery such as stamp, papers, files and other stationery useful for form filling is done. Procurement of computer machinery and other stationery is done through local distributors.
STORAGE :There are various cupboards for various files like contract notes cupboard, account opening forms cupboard, sub brokers files cupboard and general stationary cupboards are kept for easy availability of files and stationery whenever required.
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FINANCE DEPARTMENT
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As the Company being Pvt. Ltd. Company, has denied parting the financial information, so I am unable to provide whole and I get minor financial data are as follow.
Balance Sheet of Angel Broking Ltd

Industry : Finance - Investment / Others ( Rs in Crore) Financial Performance Year End Equity Net worth Enterprise Value Capital Employed Gross Block Sales Other Income PBIDT PBDT PBIT PBT RPAT APAT CP Rev. Earnings in FE Rev. Expenses in FE Book Value (Rs) EPS (Rs) Dividend (%) Payout (%) Ratio Analysis Debt-Equity Current Ratio Inventory Turnover Debtors Turnover
30-Jun 5.5 65.63 0 80.59 18.31 144.71 1.29 36.23 25.38 33.41 22.56 15.16 15.15 17.98 0 0 56.25 27.56 0 0 0.19 1.19 0 1.47
2007 3 13.77 0 13.77 16.54 63.54 0.7 8.92 5.87 5.48 2.43 1.53 1.53 4.97 0 0 44.27 5.1 0 0 0 1.05 0 0.93
2006 3 11.74 0 11.74 10.57 48.12 0.05 9.94 7.53 8.29 5.88 3.82 3.85 5.47 0 0 39.13 12.73 0 0 0 1.05 0 0.84
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Interest Cover PBIDTM (%) PBDTM (%) APATM (%) ROCE (%) RONW (%) EV/EBIDTA Rate of Growth (%) Net worth Sales PAT M Cap
3.08 24.82 17.38 10.38 70.81 38.19 0 376.62 127.75 890.85 0
1.8 13.89 9.14 2.38 42.96 12 0 17.29 32.04 -59.95 0
3.44 20.64 15.63 7.93 70.61 32.54 0 0 0 0 0
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HUMAN RESOURCE DEPARTMENT
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Human resource management policies are vital for organizations that are serious about resolving personnel issues and finding HR solutions. An absolute HR solution provides clients with professional human resource advice, human resource policy solutions and job description writing and evaluation services.
Human Resource Management serves these key functions: 1. Hiring (Recruitment) 2. Compensation 3. Evaluation and Management (of Performance) 4. Promotions 5. Managing Relations 6. Planning
It is the responsibility of human resource managers to conduct these activities in an effective, legal, fair and consistent manner. The objective of Human Resource is to maximize the return on investment from the organizations human capital. Human Resource Management aims to improve
the productive
contribution of individuals while simultaneously attempting to attain other societal and individual employee objectives. Schwind, Das and Wagar (2005)
RECRUITMENT :-
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Angel takes pride in appointing dynamic individuals who would share their vision and philosophy of 'providing the best value to all our customers. They believe that a professional, determined and focused approach towards the task at hand would enable all their aspirants to learn, groom and grow with them. They offer the perfect blend of stimulus in the form of an attractive compensation package and a stimulating work environment. Prospective candidates being appointed will serve a probationary period of three months. Staff appointed as trainees will be confirmed in the services, on completion of the required training period subject to his / her performance being satisfactory during the training period. Confirmation will be formalized only when a confirmation letter is issued to the trainee. If considered necessary, training period will be liable to be extended / terminated. During the probation period employee may terminate his/her
employment, without stating any reasons, by giving one weeks notice of termination. Employees wanting to terminate their employment, at any time after successfully serving the probationary period, will have to give one months notice of termination, stating the reasons for termination in writing. The new joinee will be attending a two day Induction Programme in order to acquaint him/her with the Angel World (Its People, Culture, Business Processes, Products & services & New Initiatives) TRAINING :-
Angel has undertaken a campaign to strengthen the staffs Customer Relationship Management skills across the organization, by planning highly
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interactive training sessions with the aim provide effective services to the clients.
The programs will be conducted by the HR team with assistance from an outsourced Trainer & will be held at the in house training centre at Akruti. The training programs will have sessions like; Effective Customer Service Skills, Effective Business Communication, Telephone Etiquette, E-Mail Etiquette, Time Management, Interpersonal Skills, Effective Selling Skills, Handling Customer Complaints effectively. Etc. They expect serious commitment and participation from the staff members for all the training initiatives. These people development programmes are an integral part of the performance appraisal process and those excelling in these programs can look forward to be suitably rewarded. E-Learning :They have initiated e-Learning for making training more accessible through video conferences & through their Employee portal. e-learning also makes the transfer of knowledge more effective & consistent. Along with a host of other training programs, their Induction program too is to be delivered across Angelites through our e-learning platform. DEVELOPMENT :Do not ask what will happen if we train people and they leave? Instead ask what will happen if we do not train people and they stay on. - Zig Ziegler As they are steadily moving up in the Customer Value Chain by providing Advice Based Broking & becoming a Knowledge Leader in the Retail Broking Business, they encourage all Angelites to upgrade their knowledge about the Dealing and advisory Process by obtaining NCFM Certifications. Apart from this they also have advanced training modules in core functional areas such as marketing / sales, corporate services, research & advisory etc. which help in creating a career path for Angelites.
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They believe in offering careers & not jobs, hence they recruit fresh graduates / post-graduates. They develop their skills & competencies which help them create a niche for themselves & achieve professional development . PERFORMANCE APPRAISAL SYSTEM :-
At ANGEL, increments will be based only on annual appraisals and will be strictly bench marked with the relative importance of the role and specific contributions of each employee. Annual Appraisals are reviewed twice in a year i.e. in July and December. New employees who have at least completed 9 months of service (6 months of confirmed service) by July or December will be eligible for an annual increment, depending on their performance & contribution to the company. The Performance Management System : Links employees performance to the Corporate Goals through well Defined Key Performance Areas (KPAs) & measurable targets, reviewed every quarter. Focuses on defining & rating all Managers on Key Competencies relevant for our business. Ensures an objective Performance Appraisal of employees through a meaningful dialogue with them about their performance and decide on measures to improve their contribution and rewards. Identifies key strengths of employees & builds a Training-cum-Career Development Plan for them.
Provides opportunity for senior employees to make a Self Appraisal

of their performance based on their KPAs and Targets, thereby minimizing areas of differences.
Downward revisions in compensation are also possible .

Performance Related Rewards (PRR) / Bonus :The company pays bonus or Performance Linked Incentives to deserving employees who have contributed more than their defined performance standards & targets. The company plans to progressively increase the variable pay component in the compensation structure to ensure greater accountability and performance orientation. SUCCESSION :The 'star' Anglesites is change leader and helps in acting as catalysts in driving the process improvement programs across various functional areas and profit centers through their Management Development Program. These change leaders (*Angel Managers) play an active role in strengthening the professional managerial team by benefiting from this knowledge sharing initiative. PRACTICES FOLLOWED BY ANGEL :Payroll Procedure
The salaries of all employees will be directly credited by the 30th or 31st of each month, to their individual corporate salary accounts maintained with HDFC Bank Limited. Employees who have newly joined will be given one
months time period within which they are required to open a corporate salary account with HDFC. Working Hours and Attendance 1. Working Hours: Working hours is from 9:30 a.m. to 6.30 p.m. from Monday to Saturday with a 30 minutes lunch break between 1.00 to 3.00 p.m. However the employee may be required to work such hours as may be necessary to carry out the duties to the satisfaction of the Company. 2. Attendance: They have introduced Harmony to facilitate their Central Support Office and all branches with online attendance. Attendance is mapped for Angelites when they log into harmony homepage
(http://harmony.angeltrade.com). All Angelites are required to login to Harmony at least twice, once on arrival and once on departure from office 3. Working on Holidays: There would be a compensatory off for working on a holiday or on a Sunday provided the employee has been asked by his/her HOD to work on a holiday or a Sunday, the employees will need to apply for WW (Work permit on weekly OFF) from Leave under Their Angelite Profile link. 4. Remuneration, Compensation and Benefit
Compensation Philosophy ANGEL strives to have a competitive and fair compensation policy aligned with its HR philosophy of meritocracy and Pay for Performance 1. Fixed Salary: The Company offers a fixed salary and benefits package to employees based on the nature of their job and expected contribution towards achievement of corporate goals. The Fixed compensation structure will normally be reviewed once every year.
2. PF: All employees are governed by the Employees Provident Fund and Miscellaneous Provisions Act, 1952.
RESEARCH METHODOLOGY
4.1) Introduction
Research is the systematic process of collecting and analyzing information to increase our understanding of the phenomenon under study. It is the function of the researcher to contribute to the understanding of the phenomenon and to communicate that understanding to others.
Research is a scientific and systematic search for pertinent information on a specific topic. In fact, research is an art of scientific investigation The Websters international dictionary proposes a very inclusive definition of research as a careful, critical inquiry or examination in seeking facts or principles; diligent investigation in order to ascertain something.
Research, stated otherwise, is a systematic attempt to push back the bound of comprehension and seek beyond the horizons of our knowledge some truth or some reality, shrouded in a subtle why and consequently, to keep on extending as also consolidating these horizons without end.
According is an academic activity and as such them term should be used in a technical sense. According to Clifford woody research comprises defining and redefining problems, formulating hypothesis or suggested solutions: collecting, organizing and evaluating data, making deductions and reaching conclusions; and at last carefully testing the conclusions to determine whether they fit the formulating hypothesis.
4.2) Define the Problem The degree of literacy about stock market
Under this study I had focus to discover literacy of investor regarding stock market. Because during my training at angel broking company. I found that the people are not aware about the stock market. They hadnt sufficient knowledge about derivative and commodity. So, I decided to investigate about the literacy of various investment instruments used by the people of Surat city. It also aimed to know how we can educate to the people about stock market. The purpose was also to identify about various sources which were affecting to the decision of the clients to invest in stock market.
4.3) Literature Review

DERIVATIVES The origin of derivatives can be traced back to the need of farmers to protect themselves against fluctuations in the price of their crop. From the the time it was sown to the time it was ready for harvest, farmers would face price uncertainty. Through the use of simple derivative products, it was possible for the farmer to partially or fully transfer price risks by locking-in asset prices. These were simple contracts developed to meet the needs of farmers and were basically a means of reducing risk.
A farmer who sowed his crop in June faced uncertainty over the price he would receive for his harvest in September. In years of scarcity, he would probably obtain attractive prices. However, during times of oversupply, he would have to dispose off his harvest at a very low price. Clearly this meant that the farmer and his family were exposed to a high risk of price uncertainty.
On the other hand, a merchant with an ongoing requirement of grains too would face a price risk - that of having to pay exorbitant prices during dearth, although favorable prices could be obtained during periods of oversupply. Under such circumstances, it clearly made sense for the farmer and the
merchant to come together and enter into a contract whereby the price of the grain to be delivered in September could be decided earlier. What they would then negotiate happened to be a futures-type contract, which would enable both parties to eliminate the price risk.
In 1848, the Chicago Board of Trade, or CBOT, was established to bring farmers and merchants together. A group of traders got together and created the 'to-arrive' contract that permitted farmers to lock in to price upfront and deliver the grain later. These to-arrive contracts proved useful as a device for hedging and speculation on price changes. These were eventually standardized, and in 1925 the first futures clearing house came into existence.
Today, derivative contracts exist on a variety of commodities such as corn, pepper, cotton, wheat, silver, etc. Besides commodities, derivatives contracts also exist on a lot of financial underlying like stocks, interest rate, exchange rate, etc.
The emergence of the market for derivative products, most notably forwards, futures and options, can be traced back to the willingness of riskaverse economic agents to guard themselves against uncertainties arising out of fluctuations in asset prices. By their very nature, the financial markets are marked by a very high degree of volatility. Through the use of derivative products, it is possible to partially or fully transfer price risks by locking-in asset prices. As instruments of risk management, these generally do not influence the fluctuations in the underlying asset prices. However, by locking in asset prices, derivative products minimize the impact of fluctuations in asset prices on the profitability and cash flow situation of risk-averse investors.
The International Monetary Fund defines derivatives as " financial instruments that are linked to a specific financial instrument or indicator or commodity and through which specific financial risks can be traded in financial markets in their own right. The value of a financial derivative derives from the
price of an underlying item, such as an asset or index. Unlike debt securities, no principal is advanced to be repaid and no investment income accrues".
Derivative products initially emerged as hedging devices against fluctuations in commodity prices and commodity-linked derivatives remained the sole form of such products for almost three hundred years.
Commodity :-
Derivatives as a tool for managing risk first originated in the commodities markets. They were then found useful as a hedging tool in financial markets as well. In India, trading in commodity futures has been in existence from the nineteenth century with organized trading in cotton through the establishment of Cotton Trade Association in 1875. Over a period of time, other commodities were permitted to be traded in futures exchanges. Regulatory constraints in 1960s resulted in virtual dismantling of the commodities future markets. It is only in the last decade that commodity future exchanges have been actively encouraged. However, the markets have been thin with poor liquidity and have not grown to any significant level.
NCDEX :National Commodity and Derivatives Exchange Ltd (NCDEX) is a technology driven commodity exchange. It is a public limited company registered under the Companies Act, 1956 with the Registrar of Companies, Maharashtra in Mumbai on April 23, 2003. It has an independent Board of Directors and professionals not having any vested interest in commodity markets. It has been launched to provide a world-class commodity exchange platform for market participants to trade in a wide spectrum of commodity derivatives driven by best global practices, professionalism and transparency.
NCDEX is regulated by Forward Markets Commission in respect of futures trading in commodities. Besides, NCDEX is subjected to various laws of the land like the Companies Act, Stamp Act, Contracts Act, Forward Commission (Regulation) Act and various other legislations, which impinge on its working. It is located in Mumbai and offers facilities to its members in about 91 cities throughout India at the moment.
4.4) Objectives of the study :The objectives of the study are as under: 1. To know the awareness of stock market 2. To know the investment habit/pattern of the people 3. To know the purpose of investing in stock market. 4. To know the influencing forces behind the decision making while trading in stock market. 5. To know constraints which are affecting investment in stock market 6. To find out best pattern to educate about stock market 7. To enhance the knowledge of investors 8. To advise investment strategies to investors this allows them to apply concepts & skills using equities. 9. To understand the relation between stock market and Indian economy in comparison with the worlds countries.
4.5) Rational of the study :The research that is being conducted by me will be useful in the following respect: This will help the company, how to make people aware about stock market by imparting best education. This will help to know the investment options used by people and turn them towards stock market. This will help the company to frame effective marketing strategy. This will also help to select right media for advertising to create brand awareness as well as to give knowledge of the products.
It will help to know how the people take decision to invest in stock market. It will help the company to reduce the obstacles, which come in the way for the development of stock market.
4.6) Limitations of the study :Personal bias :People may have personal bias towards particular investment option so that they may not give correct information. Time limit :The time duration for the research is short, so a census is not possible due to time limit, so I have collected data through sample survey. Area :The survey was limited only to the physical boundary of Surat city only, so I can not know the degree of literacy about sock market outside the city. Sample size :I have collected data from 100 samples only, which may not reflect the proper result of the study.
Lack of expertise :This research work is prepared by me, so there is chance of lack of expertise knowledge in the particular field.
4.7) Variables & Hypothesis formulation :Ho: Null Hypothesis Ha: Alternate Hypothesis
Ho :-There is no significance difference between Age and attitude of investment pattern in securities Ha :-There is significance difference between Age and attitude of investment pattern in securities Ho The investor in the sample were invested randomly in the stock market. HaThe investor in the sample were not invested randomly in the stock market Ho There is no significance difference among various investment instruments for investment. Ha There is significance difference among various investment instruments for investment. Ho: There is no significant difference between the various factor considered By Investors while investing H1: There is significant difference between the various factor considered by Investors while investing
4.8) Data Collection :A structured questionnaire was prepared which consisted a 13 set of questions relating to different investment options particularly stock market. For those who were investing in stock market, questions like whether they are investing in equity or derivatives or both and how they want to learn about stock market. In my research study I consider those sample unit in which
people are investing in different investment option. For that we accepted convenient sampling method, and collected that data from the surat city. There are mainly two sources of data collection that are as under:
(1) Primary Data Primary data are those, which are collected by the researcher at the first time, and they are original in character to study a particular problem. Primary data is collected by questionnaires, personal contact of customer and telephonic interview.
The normal procedure is to interview some people individually to get a sense of how they feel about stock market. I have put the questionnaire on behalf of different businessman, students, professionals, service class people and they fill up the questionnaires by themselves. So far as my research is concerned, primary data is the main source of information. I have collected data questionnaire and information from respondents. (2) Secondary data
When data are collected and compelled from the published nature or any others primary data is called secondary data. So far my research is concerned; I have not collected any information from any sources. So, I have not used secondary source of data collection for my research work.
4.9) Data Analysis & interpretation :1) AGE GROUP VISE INVESTORS
Age 21 30 31 40 41 - 50 51 - 60 Above 61 Total
Numbers of investors 27 24 18 19 12 100
Interpretation
In the age vise analysis I found that 27 people which are come under 2130 age group are more invested In stock market.
2) EDUCATION QUALIFICATION VISE INVESTORS Education qualification Under-Graduate Graduate Post-Graduate Professional Illiterate No. of Investors 24 21 26 26 3
Total
100
Interpretation In the education qualification vise analysis both post graduate and professional people are invested their money.
3) OCCUPATION VISE DISTRIBUTION OF INVESTORS Occupation Professional Businessman Employee Student Others Total No. of Investor 15 35 20 16 14 100
Interpretation In the Occupation vise distribution I found that most of the businessman is invested their money in the stock market.
4) DO YOU INVEST IN STOCK MARKET?

Invest 86 Do Not Invest 14 Total 100
RUN TEST
1) Null hypothesis :Ho the investor in the sample were invested randomly in the stock market. Ha the investor in the sample were not invested randomly in the stock market. 2) Statistical Test :The appropriate Statistical test is the large sample run test
3) Significant level :Test at a 5 % level of Significant
4) Calculated Value :Z=Rr
r = 2*86*14/100+1 = 25.08
r=
2(86) (14) [2(86) (14) 86 14] (86) (14)2(86+14-1)
2408 * 2508 100000 (99)
=
=
61.02 7.81
Z = 17 25.08 7.81 = -8.08
7.81 = - 1.0345
5) Critical Value :0.05 2 = 0.025 0.5 = 0.45 = -1.96 6) Interpretation :Since the calculated value (-1.0345) is > Critical Value (-1.96) .So reject the null hypothesis and Conclude that there is the investor in the sample were invested randomly in the stock market.
=
0.025
5) INVESTMENT IN DIFFERENT INVESTMENT INSTRUMENTS

Investment option No. of Investors(%)
Bank Fixed Deposit Mutual Fund Shares/Equity Insurance Real Estate Govt. Securities Bonds/Debenture Postal Scheme P.P.F Pension Fund Jewellery Other
5 11 29 11 5 5 10 2 2 3 10 7
Interpretation :It can be seen from the graph that almost respondents have given preference for investment to Jewellery, Shares/equity and Insurance.
Now we come to the one of the most risky but at the same time the medium of getting maximum returns Stocks. Here we found that 30 people invest in share market. And we also say that people invest in both primary market and secondary market. The number of people investing in IPOs is increasing day by day. Many investors are opening Demat account only for the purpose of IPOs.
In this study, I found that 10 investors invested in jewellery because it can be used for wearing to enhance appearance.
People are investing in Bank fixed deposit because it gives safety of investment and fixed return.
Aged people preferred to invest in P.P.F and Pension fund. As they were more interested in safety, they give more importance to this type of securities.
Mutual Funds are considered to be a very good option of investment nowadays. But there are number of people who are not aware of mutual funds. They even dont know what these mutual fu nds are for and how they are beneficial. We found that professionals are interested in mutual funds and stocks both type of investment options. Real Estate investment is preferred by more than half of the investors.
6) HOW TO INVEST IN STOCKS :-
IPOS Secondary Market Both
Number of Investors (%) 34 21 45
Interpretation :For investing in stock market, the two options available are (1) IPOs (Primary) and (2) Secondary Market. It is said that investing in secondary market is riskier than IPOs. Among the people we surveyed, those who were
giving importance to Safety and Less risk, moderate return were investing just in IPOs. Nowadays most of the IPOs are giving higher return to investors.
7) FACTORS CONSIDERED IN INVESTMENT

1st Rank 2nd Rank of 43 12 24 21 12 36 33 19 3rd Rank 20 22 13 45 4th Rank 25 18 33 24
Safety investment High return Speculation Income
Interpretation :Moving to the next question of ranks given to different investment options, in chart we can see that 43% people has given 1st rank to Safety of
investment. So we can say that more investors are giving much importance to safety. And thus can be interpreted that they want to play safe. This is based clearly on finance funda- High risk, High return and Low risk, low return. For such type of investors, better medium of investments are insurance policies, P.P.F, Government securities, postal scheme and Bank fixed deposit, bonds and debentures. In a developing country like India, where number of lower middle class is the highest therefore prefer safe investment options at the cost of high return. 36% investors have given 2nd rank to high return. So it is clear that investors have an internal fear about high risk taking but they are investing in IPOs because it gives high return at low risk as compared to secondary market. It is also found that businessmen and professionals are higher risk taking class as they have greater purchasing power compared to service class people. Some mutual funds also give higher return so investors also move towards mutual funds.
As per above chart, 45% investors have given third preference to income. there is low risk and low return so investors invest into safe investment to earn regular income they prefer to invest in Bank fixed deposit, postal schemes bonds/debentures and Govt. securities.
Above chart indicates that 33% investors given fourth preference to speculation. It is high riskier but it offers high return. Investors dont want to take risk because it requires complete knowledge of stock market trend. Most of people want to invest in safe investment option.
Hypothesis :-
Ho: There is no significant difference between the various factor considered By Investors while investing H1: There is significant difference between the various factor considered by Investors while investing
Statistical Test :Choose Fried man test because collected ranked data that are in ordinal form Significant level :Consider significant level at 5% Calculated Value :Xr2 = 12 * Rj2 3b(c+1) bc(c+1) 12 * 253510 100(3) (5) 100(4) (5) = 21.06 Critical Value :C=5 df=c-1 =4 at 0.05 Level =9.49 Interpretation :The table value is lesser than the calculated Value so hypothesis is accepted. so null hypothesis is accepted. it means various factors are considered by investors while investing in stock market.
8) INVESTMENT INSTRUMENT IN WHICH PEOPLE WANT TO INVEST

Instruments Equity Derivatives Commodity Others No. of Investors (%) 29 24 27 20
On asked about their preferences for trading in future, the respondents have shown equal interest in Derivatives, other investment instruments and equity with 27 % followed by commodity. From this I can say that commodity segment has got a brighter future because so many agricultural commodities are traded in the commodity market. It gives wider option to investors.
KOLMOGROVE SMIRNOV TEST :-
1) Null hypothesis :Ho There is no significance difference among various investment instruments for investment. Ha There is significance difference among various investment instruments for investment.
2) Statistical Test :Choose K-S test one sample test because data are in ordinal and interested in comparing and observed distribution.
3) Significant level :Test at a 5 % level of Significant n = 100
4) Calculated Value :-
Equity 29 Fo (x) F1 (x) Fo (x) F1 (x) 29/100 25/100 4/100
Derivative 24 53/100 50/100 3/100
Commodity 27 80/100 75/100 5/100
Other 20 100/100 100/100 0
D= 5 100 = 0.05 5) Critical Value :At 0.05 level of significant, Critical Value is 1.36 = 0.136 100
6) Interpretation :Since the calculated value (0.05) < Critical value (0.136) so this indicating hypothesis is accepted. So accepted null hypothesis. There is no significance investment. difference among various investment instruments for
9) THE CONSTRAINTS WHICH ARE AFFECTING THE INVESTMENT IN STOCK MARKET
Obstacles Lack of knowledge Fund facilities Risk taking ability regulatory constraints
Nos. 29 21 11 10
Lack of Guidance Other
22 7
Factors Independently Advice from friends/colleagues Broker's/Agent's Advice Advice from CA/Tax Consultant News Channels
Percentage 13 8 23 5 13
Interpretation :While questioned about the constraints which hold them back from trading in derivatives and commodities, respondents have given the maximum votes to their lack of knowledge and lack of guidance with 29% and 22 % respectively. Many people are affected by lack of guidance. Some regulatory constraints are affecting like PAN card, Demat a/c, etc.
10) DECISION TAKEN BY INVESTORS WHILE INVESTING INTO MARKET STOCK
Well-known stock broking house Business Newspapers Business Magazines Internet
7 14 7 10
Interpretation :-
On asked to the respondents that while deciding to trade in derivative commodities, which do they consider the reliable source of information. I come up with the conclusion that most of investors take their decision independently and Take support of News channels. Broker/agents advice occupy the first place while taking decision to invest in stock market because brokers provide fundamental and technical research services for that they recruits experts.
11) TOOLS PERFERED BY PEOPLE WHILE LEARNING ABOUT STOK MARKET
Tools Literature Classroom Training Documentaries Internet Seminars Self-Experience
Nos. (%) 16 17 11 15 16 25
Interpretation :When the respondents were asked about the learning technique on stock market, the most of them preferred preference self experience that is they wanted to learn through trial n error: after all Experience is The Best Teacher. People prefer seminars, internet and documentaries equally to learn about stock market. Lastly, about 1/3 of the people want learn through classroom training and literature.
12) DOES YOUR BROKER PROVIDE RIGHT QUOTATION PRICES OF STOCK YOU INQUIRED?
No. of Respondents(%) 63 14 18 0 5
Always Often Sometimes Seldom Never
Interpretation :Most of investors receive the right prices of the stocks they inquired. Some investors receive price quotation of the stocks from their brokers but not of the latest news about market trend.
5.) Findings :Business class investors more proportion of their income in shares & securities as compared to service class investors.
Majority of investors trade according to expert the daily traders.
Majority of investors take the decision on investment (where/what amount to invest) on their own idea and some rely on experts opinion and brokers advice.
In cash segment, capital gain is the prior motive of the investors followed by regular of the investors followed by regular income and tax income and tax planning.
The satisfaction level regarding services by brokers of phone service & professional advice is very low.
Professional advice available is not adequate regarding investment in secondary market.
Most of the investors feel that online trading is more transparent than the older form of trading (Ring trading).
Most of the people are aware of different charges charged by the brokers (Demat charges, transaction charges, service charges, service charges etc.).
While selecting a broker, brokerage & frequent payments were considered as main factors followed by personal relations. Most of the investors are not satisfied with phone services provided by the brokers,
The major problem faced by the investors is of brokers attitude towards small investors is not same as with the big investors.
Another major problems faced by the investors is to decide where/what amount is invested.
6.) Suggestion :As I have examined those different investors are giving priorities to investment instrument as per their need. Accordingly, as per the needs of the client, a product can be recommended to him. Angel Broking Limited has strength in Top Quality Research, Internet Trading, Investment Advisory Services, Value Added Back office services and DP Services. The firm also deals in commodities and insurance to add more number of clients.
Angel broking should increase its promotional activities and it should make aware people of Surat city about its product and services.
Angel broking should turn the existing customer to trade or invest in other product which they are not aware about or not investing in them.
Angel broking should organize seminars and presentation of highly experienced person. It should provide classroom training to those who are eager to learn about share market. It should distribute documents about product information.
Angel broking should utilize the Radio (FM), Newspaper, local T.V advertisement as a medium of promotion.
Angel should recruit more employees who can handle the price quotation call of clients so that they came to know right price quotation of the scrip inquired. Provide the facility of free demonstrations for all There should be a limited number of clients under the relationship manger. So that he can handle new as well as old customer properly People at young age should be encouraged to invest in stock market Seminars should be more held for providing information to prospective and present customers In the organization, There must be co-operation with other department and other branches Give more demonstration to customers so that they can get complete knowledge about online trading Give the complete information about products and services offered by the company to the customers. The number of branches it has at present should be increased all over the country, which will attract a large number of customers. Company should educate about the rules and regulations of SEBI to its customers.
7.) Conclusion :-
On the basis of the study it is found that Angel Broking Ltd. is better services provider than the other stockbrokers because of their timely research and personalized advice on what stocks to buy and sell. Angel Broking Ltd. provides the facility of Trade as well as relationship manager facility for encouragement and protects the interest of the investors. It also provides the information through the internet and mobile alerts that what IPOs are coming
in the market and it also provides its research on the future prospect of the IPO. Study also concludes that people are not much aware of commodity market and Derivative Market while its going to be biggest market in India. From the above survey and observation it is found that most of the people who are trading in share market belongs to the employee group, next comes the business men and other class of income people. As the share market value goes on increasing day by day the investor who wants to invest in shares also increasing. But investing in shares is as risky as earning yield.
Trading in online trading firm is easy as it all delivered with internet and within a few minutes the customer can buy and sell shares which save time as well as reduction of paper work. Hence trading in share market is increasing day by day and investors are ready to invest their investment in share market only. I got the knowledge about the customers needs and their references for having a particular product. The need of customers differs from person to person, area, locality and occupation. Customer always wants more service by paying less.
They expect all the information such less rates, less brokerages, highly returns and better service level without delay
9.) BIBLIOGRAPHY
-- Business Research Methodology Donald Cooper And Schindler Pamela, Tata Mac Grew hill, 9th Edition, 2009 --Financial Management I.M.Pandey, Vikas publishing House, 9thEdition,2010 -- Workbook of NSEs Certification in Financial Markets (NCFM Module)
Websites visited:
1. www.ncdex.com 2. www.mcxindia.com 3. www.nseindia.com 4. www.bseindia.com 5. www.angletrade.com
APPENDIX
Questionnaire The Degree of Literacy about Stock market
(1)Name _________________________________________________ :
(2) Age :
21-30
31-40
41-50
51-60
Above 61
(3) Education:
Undergraduate Post Graduate Illiterate
Graduate Professional
(4) Occupation:
Professional Employee Others
Businessman Student
(5) Do you invest in stock market? Yes No
(6) Out of the Following Investment Options, with which are you familiar and Invest into it? Bank Fixed deposit Shares/Equity Real Estate Bonds/Debenture P.P.F Jewellery Mutual Fund Insurance Govt. Securities Postal Scheme Pension Fund Other (specify) _________
(7) How do you invest in Stock/Securities? IPOs Secondary Market Both
(8) What are the factor do you consider while investing? (Give rank from 14) Safety of Investment Speculation (9) Which of these you would like to Invest? Equity Commodity Derivatives (F & O) Others High Return Income
(10) What are the constraints that are holding you back to invest in Stock market? Lack of Knowledge Risk taking Ability Lack of Guidance Other (specify) ________________ Fund Facilities Regulatory Constraints
(11) How do you take decisions if you want to trade in stock market?
Independently Friends/Colleagues Broker/Agents Advice Consultant News Channels Business Newspapers Internet Advice from
Advice
from
CA/
Tax
Well-Known Stock Broking Business Magazines
(12) How do you want to learn about stock market? Literature Documentaries Seminars Classroom Teaching Internet Self-Experience
(13) Does your broker give you the right quotation of prices of stock you inquired? 1. 2. 3. 4. 5. Always often sometimes seldom never
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A Project Repot On

THE DEGREE OF LITERACY ABOUT STOCK MARKET

(Conducted on Behalf of Angel Broking Ltd, Varachha, Surat.)

Under the Guidance of (College) Mrs Arpita Vaghela

Submitted to Gujarat Technological University - Ahmedabad Prepared By: MEHUL B HIRANI

M.B.A. Sem. II, Seat No 13899

K.K.PAREKH INSTITUTE OF MANAGEMENT STUDIES - AMRELI

K.K.PAREKH INSTITUTE OF MANAGEMENT STUDIES - AMRELI

K. K. Parekh Institute of Management Student Amreli

Subject: MBA Summer Training Project Report

ANGEL BROKING LTD _____________

Date: You, Place: - Amreli

K.K.PAREKH INSTITUTE OF MANAGEMENT STUDIES - AMRELI

MARKET_______________ is my own work.

of Management Studies Amreli and submitted to Gujarat Technological University, Ahmedabad.

K.K.PAREKH INSTITUTE OF MANAGEMENT STUDIES - AMRELI

K.K.PAREKH INSTITUTE OF MANAGEMENT STUDIES - AMRELI

K.K.PAREKH INSTITUTE OF MANAGEMENT STUDIES - AMRELI

K.K.PAREKH INSTITUTE OF MANAGEMENT STUDIES - AMRELI

K.K.PAREKH INSTITUTE OF MANAGEMENT STUDIES - AMRELI

K.K.PAREKH INSTITUTE OF MANAGEMENT STUDIES - AMRELI

Data Analysis & Interpretation Findings Suggestions Conclusion Bibliography Questionnaire

K.K.PAREKH INSTITUTE OF MANAGEMENT STUDIES - AMRELI

K.K.PAREKH INSTITUTE OF MANAGEMENT STUDIES - AMRELI

1.1) HISTORY OF STOCK EXCHANGES

K.K.PAREKH INSTITUTE OF MANAGEMENT STUDIES - AMRELI

K.K.PAREKH INSTITUTE OF MANAGEMENT STUDIES - AMRELI

OVERVIEW OF THE INDIAN SECURITIES MARKET

K.K.PAREKH INSTITUTE OF MANAGEMENT STUDIES - AMRELI

K.K.PAREKH INSTITUTE OF MANAGEMENT STUDIES - AMRELI

K.K.PAREKH INSTITUTE OF MANAGEMENT STUDIES - AMRELI

K.K.PAREKH INSTITUTE OF MANAGEMENT STUDIES - AMRELI

K.K.PAREKH INSTITUTE OF MANAGEMENT STUDIES - AMRELI

NSE was set up with the objectives of:

K.K.PAREKH INSTITUTE OF MANAGEMENT STUDIES - AMRELI

Annexure II- S&P CNX Nifty Index: May 2010

K.K.PAREKH INSTITUTE OF MANAGEMENT STUDIES - AMRELI

K.K.PAREKH INSTITUTE OF MANAGEMENT STUDIES - AMRELI

TATAMOTORS TATAPOWER TATASTEEL UNITECH WIPRO

5064816780 2373072360 8873890170 4877602094 2936690224

24089.61559 20979.92956 30517.68924 9738.87622 20117.85364

1.638799061 1.427249378 2.076096245 0.662528679 1.368602979

K.K.PAREKH INSTITUTE OF MANAGEMENT STUDIES - AMRELI

1.3) COMPETITORS DETAILS

SHCIL (STOCK HOLDING CORPORATION OF INDIA LIMITED)

K.K.PAREKH INSTITUTE OF MANAGEMENT STUDIES - AMRELI

K.K.PAREKH INSTITUTE OF MANAGEMENT STUDIES - AMRELI

MARWADI SHARES AND FINANCE PRIVATE LIMITED

K.K.PAREKH INSTITUTE OF MANAGEMENT STUDIES - AMRELI

KARVY STOCKBROKING LIMITED

K.K.PAREKH INSTITUTE OF MANAGEMENT STUDIES - AMRELI

Depository Services Value added services for seamless delivery.

INDIAN STOCK EXCHANGES

List of Indian Stock Exchanges

THE UTTAR PRADESH STOCK EXCHANGE ASSN. LTD.

K.K.PAREKH INSTITUTE OF MANAGEMENT STUDIES - AMRELI

K.K.PAREKH INSTITUTE OF MANAGEMENT STUDIES - AMRELI

2.1) HISTORY OF ANGEL BROKING

Mr. Dinesh Thakkar Promoter and Managing Director

K.K.PAREKH INSTITUTE OF MANAGEMENT STUDIES - AMRELI

2.2) MISSION STATEMENT

2.4) BUSINESS PHILOSOPHY

Central Support & Registered Office:

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