Frorex Project

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ABOUT AXIS BANKAxis Bank was the first of the new private banks to have begun operations in 1994, after the Government of India allowed new private banks to be established. The Bank waspromoted jointly by the Administrator of the specified undertaking of the Unit Trust of India (UTI - I), Life Insurance Corporation of India (LIC) and General InsuranceCorporation of India (GIC) and other four PSU insurance companies, i.e. NationalInsurance Company Ltd., The New India Assurance Company Ltd., The OrientalInsurance Company Ltd. and United India Insurance Company Ltd.

The Bank today is capitalized to the extent of Rs. 405.17 crores with the public holding(other than promoters and GDRs) at 53.09%.

The Bank's Registered Office is at Ahmedabad and its Central Office is located atMumbai. The Bank has a very wide network of more than 1000 branches and ExtensionCounters (as on 31st March 2010). The Bank has a network of over 4055 ATMs (as on31st March 2010) providing 24 hrs a day banking convenience to its customers. This isone of the largest ATM networks in the country.

The Bank has strengths in both retail and corporate banking and is committed toadopting the best industry practices internationally in order to achieve excellence.



PromotersAxis Bank Ltd. has been promoted by the largest and the best Financial Institution of thecountry, UTI. The Bank was set up with a capital of Rs. 115 crore, with UTI contributingRs. 100 crore, LIC - Rs. 7.5 crore and GIC and its four subsidiaries contributing Rs. 1.5crore each.

SUUTI - Shareholding 24.00%

Erstwhile Unit Trust of India was set up as a body corporate under the UTI Act, 1963,

with a view to encourage savings and investment. In December 2002, the UTI Act, 1963

was repealed with the passage of Unit Trust of India (Transfer of Undertaking and

Repeal) Act, 2002 by the Parliament, paving the way for the bifurcation of UTI into 2

entities, UTI-I and UTI-II with effect from 1st February 2003.

In accordance with the Act, the Undertaking specified as UTI I has been transferred and

vested in the Administrator of the Specified Undertaking of the Unit Trust of India

(SUUTI), who manages assured return schemes along with 6.75% US-64 Bonds, 6.60%ARS Bonds with a Unit Capital of over Rs. 14167.59 crores

The Government of India has appointed Shri K. N. Prithviraj as the Administrator of the

Specified undertaking of UTI, to look after and administer the schemes under UTI - I,

where Government has continuing obligations and commitments to the investors, which

it will uphold.

Board of DirectorsThe members of the Board are :

Board of DirectorsThe members of the Board are :

Dr. Adarsh Kishore Non-Executive Chairm



Smt. Shikha Sharma Managing Director & C

Shri M. M. Agrawal Deputy Managing Dire

Shri J.R. Varma Director

Dr. R.H. Patil Director Smt. Rama Bijapurkar Director

Shri R.B.L. Vaish Director

Shri M.V. Subbiah Director

Shri K. N. Prithviraj Director

Shri V. R. Kaundinya Director

Shri S. B. Mathur Director

BRANCHES OF AXIS BANK

Axis Bank has all over around 1000 branches in india among these thereare branches in prime cities like----



• Mumbai.

• Chennai.

• Delhi.

• Calcutta.

• Goa.

• Banglore.• Madras.

• Guhati.

• Tamil nadu.

• Bhopal.

• Gujrat.

• Asam.• Uttar Pradesh. Etc

BRANCHES OF AXIS BANK OVERSEAS

Axis Bank also has its branches overseas it extends its banking operationsin countries like-----

• Singapore.

• Hong kong.

• UAE

• China.

VARIOUS DEPATMENTS OS AXIS BANK



• Personal Banking Department.

• Pirority Banking.

• NRI Banking Department.

• Securities,

• Insurance.

• Investment solutions

• Forex Deparetment.

• Business Banking Department.

• Corporate Banking Department.

• Credit Laundering DepartMent.



INTRODUCTION TO FOREX TRADING

Although the foreign exchange market is the largest traded market in the world,its reach to the retail sector pales in comparison to the Equity and FixedIncome markets. This is in large part due to a general lack of awareness of FXin the investor community, along with a lack of understanding of how and whycurrencies move. Adding to the mystique of this market is the lack of aphysical central exchange akin to the NYSE or the CME. It is this very lack of structure that enables the FX markets to operate on a 24-hour basis,beginning the trading day in New Zealand and continuing through the timezones.



Traditionally, access to the FX market was limited to the bank community thattraded large blocks of currencies for commercial, hedging, or speculativepurposes. The creation of firms like FXDD has opened the door of Forextrading to such institutions as funds and money managers, as well as to theindividual retail trader. This sector of the market has grown exponentially over

the past several years.

WHAT IS FOREIGN EXCHANGE

For active traders and investors, foreign exchange should be no different thanother investment products such as equities, commodities or fixed-income.Because of globalization in the economic world and consolidation of wholeeconomic regions (i.e., the European Union), including currencies in aportfolio helps to diversify assets and can reduce risk.

Just like other investment alternatives, foreign exchange offers traders/investorsa market where they can buy or sell an investment product. In this case it is aspecific Currency Pair. The currency pair may be the Euro versus the USDollar, the US Dollar versus the Japanese Yen, the British Pound versus theUS Dollar, the Euro versus British Pound, or a number of other currencycombinations.

The different currency combinations represent nothing more than the value of one currency versus the value of another. That relationship is represented bya single price. In foreign exchange, the price of a currency pair is the market’sexpectations (at that time) of the value of that currency measured againstanother currency given the current and expected economic and politicalsituation in the two economies. In equity terms, it is the price of the stock.

If, for example, an economy’s inflation/interest rates are low and stable, if itsoutput is growing strongly, or if its politics are stable and expectations are for more of the same, then one can expect (in general) for that country's currencyto remain strong versus a less fundamentally favorable currency.



Contrasting that with an equity, if the domestic and global economy is strong, if inflation is not rampant, if competition is not taking away market share or eating into margins, if product demand and growth are strong, of if thecompanies internal "politics" are such that the workers are happy andproductive, and expectations are for more of the same, then you can expect

that company’s stock to remain strong versus a company with less favorablefundamentals.

Similar to equities there are other factors that determine the short term value of aproduct including technical analysis, short term supply and demand,seasonal capital flow patterns, the current price of the instrument, etc. It isthese universal dynamics that will move a currency’s value up or down. (HighRisk Warning )(Past Performance).

THE LIQUID CURRENCY PAIRS

Currencies, like equities and bonds, have pairs that are very liquid and those thatare not so liquid. The liquid currencies can be characterized as those that arethe most stable economically and politically. They include the countries thatform the G7 - the United States, Japan, Great Britain, France, Germany, Italy,and Canada.

Since the unification of the European currencies into the EURO, the currenciesthat are most liquid now include the US Dollar, the Japanese Yen, the BritishPound, the Euro, and the Canadian Dollar. It is estimated that activities in

these currencies comprise more than 80% of the daily foreign exchangevolume.

FOREIGN CURRENCY SYMBOLS

Currencies, like equities, have their own symbols that distinguish one fromanother. Since currencies are quoted in terms of the value of one against thevalue of another, a currency pair includes the "name" for both currencies,separated by a "/". The "name" is a three letter acronym. The first two lettersare in most cases reserved for identification of the country. The last letter isthe first letter of the unit of currency for that country.

For example,

USD = United States Dollar

GBP = Great Britain Pound

JPY = Japanese Yen



CAD = Canadian Dollar

CHF = Confederatio Helvetica (Latin for Swiss Confederation) Franc

NZD = New Zealand Dollar

AUD = Australian Dollar

NOK = Norwegian Krona

SEK = Swedish Krona

Since the European Euro has no specific country attached to it, it goes simply bythe acronym EUR.

By combining one currency, EUR, with another USD, you create a currency pair

EUR/USD.

THE BASE AND THE COUNTER CURRENCY

One currency in a currency pair is always dominant. It is called the BaseCurrency. The base currency is identified as the first currency in a currencypair. It also is the currency that remains constant when determining acurrency pair's price.

The Euro is the dominant base currency against all other global currencies. As aresult, currency pairs against the EUR will be identified as EUR/USD,

EUR/GBP, EUR/CHF, EUR/JPY, EUR/CAD, etc. All have the EUR acronym asthe first in the sequence.

The British Pound is next in the hierarchy of currency name domination. Themajor currency pairs versus the GBP would, therefore be identified asGBP/USD, GBP/CHF, GBP/JPY, GBP/CAD. Apart from the EUR/GBP, expect tosee GBP as the first currency in a currency pair.

The USD is the next dominant base currency. USD/CAD, USD/JPY, USD/CHFwould be the normal currency pair convention for the major currencies. Sincethe EUR and the GBP are more dominant in terms of base currencies, the

dollar is quoted as EUR/USD and GBP/USD.

Knowing the base currency is important as it determines the values of currencies(notional or real) exchanged when a foreign exchange deal is transacted.

The Counter Currency is the second currency in a Currency Pair notation.

THE VALUE OF CURRENCIES



The base currency is ALWAYS equal to one of the currency's monetary unit of exchange (i.e., 1 Euro, 1 Pound, and 1 Dollar). When an investor buys 100,000EUR/USD, he is said to be buying (or receiving) the EURO or the BaseCurrency and selling (or paying for) the USD or Counter Currency. Theamount of the Base Currency he is buying is equal to 100,000 Euros. Note that

this is true no matter the current exchange rate at the time. The base currencyamount remains constant.

The Counter Currency equivalent amount that the investor is selling (or paying),on the other hand, will fluctuate with the exchange rate for the Currency Pair.It is equal to:

(Amount of Base Currency x Market Foreign Exchange Rate)

Since the Counter Currency is the part of the currency pair that fluctuates higher or lower, it determines the strength or weakness of both currencies in a

currency pair. As one currency goes up, the other must go down.

Currencies trade in fractions of a full unit. The smallest fraction is called a "pip".Currencies trade in pips because exchanges of currencies for speculativereasons are generally for large amounts. This is because of the leverage thatis available when trading Foreign Exchange.

FXDD provides a Maximum Trading Leverage Ratio of 100:1for standardaccounts. At that ratio, a 100,000 EUR position would require $1,200 of Marginat an exchange rate of 1.2000. This is calculated by taking the US$ equivalentof 100,000 EUR or US$120,000 and dividing by the 100:1 leverage ratio.

Margin Required = $120,000 / 100 = $1,200

To determine the value of a pip for the deal above the following calculation wouldbe made:

Value in US$ = 1.20 x Par Amount of Base Currency = $120,000

Value in US$ + a pip = (1.20+.0001) x Par Amount of Base Currency = $120,000

The value of a pip in dollars is equal to $120,000 - $119,990 or $10.

When a currency pair goes from a low price to a higher price, the Base Currencyis said to have strengthened or gotten stronger. The converse is true for theCounter Currency. That is, it has weakened or gotten weaker as the BaseCurrency has gotten stronger.

Since Exchange Rates represent what a fixed amount of currency is equal to interms of another currency, we have seen there is just one price for the



Currency Pair. The movement of that price determines whether a currency isgetting stronger or weaker.

If the EUR/USD exchange rate goes from 1.2000 to 1.2024, we have concludedthat the EUR got stronger, the USD weaker. Why?

When looking at Foreign Exchange Rates (or prices) an action to Buy theCurrency Pair implies buying the Base Currency, or EUR, and selling theCounter Currency, or USD. If the EUR/USD exchange rate moves higher, asexpected, the trader can now sell the EUR/USD at a dearer/higher price. Thedifference represents a Profit to the trader that was Long, or who bought theEUR/USD Currency Pair.

Another way of looking at it is at 1.2000, an investor/trader could exchange 1 EURfor $1.20. At 1.2100, however, that same single EUR can now be exchangedfor a higher amount of USD, in this case $1.21 USD. The EUR has

strengthened or gotten stronger.

TRANSACTING FOREIGN EXCHANGE FUNDAMENTALS

BUYING AND SELLING FOREIGN EXCHANGE

THE BID/ASK PRICE

Like equities, foreign exchange has a Bid price and an Ask price. The bid is wherethe market maker will buy. The ask is where the market maker will sell. For investors, the reverse is true. The bid price is where an investor can sell,while the ask is where an investor can buy.

The bid price is always less than the ask price. This makes logical sense as amarket maker, like any investor, wants to buy low and sell high.

The spread between the bid and the ask is called the Bid/Ask Spread or DealingSpread. The bid/ask spread is the premium that market makers charge toprovide constant liquidity to a retail client base. For example, the bid and askmight be 1.2050/1.2055. The spread is 5 pips.

Paralleling foreign exchange trading to equities, a market maker, like FXDD, is theequivalent of a specialist on the floor of the exchange.



A specialist is always willing and able to make a market (i.e. provide liquidity) tothe market/investor. For this service, he will have a bid where he buys thestock and an offer or ask, where he will sell the stock. The bid/ask spread thespecialist charges will fluctuate with the general liquidity of the underlyingstock.

That same principle applies to FXDD's Bid/Ask Spreads.

Dealing Spreads for the major currencies pairs on FXDD are 2-3 pips wide. Someless liquid currencies will be a bit wider. This reflects the relative liquidity/riskin the professional market for that particular currency pair. The dealingspreads that we quote reflect a normal market making spread given the riskswe take and the costs we incur for servicing our clients' business.

Obviously, if the volatility and risk of making a market increase because themarkets become less liquid, it stands to reason that our spreads will increase

as well. These are universal realities of market makers and should not comeas a surprise to knowing investors/traders.



Foreign Exchange Department

Axis Bank Treasury is a leading player in the foreign exchange market. Usingsophisticated technology and experienced dealers we are able to provide the cheapest-to-deliver spot and forward prices to our clients.

Various products of Forex department

• Spot Contracts.

• Forward Contracts.

• Currency Swaps

• Interest Rates Swap.

• Currency Options.

• Forward Rate Agreement.



Spot Contract

• It is the simplest and most common foreign exchange transaction widely used bycorporates to cover their receivables and payables

• Commitment by the client to buy and sell one currency against another at a fixedrate for delivery two business days after the transaction

• This eliminates the possible risk due to exchange rate fluctuation for the client

• Corporates can buy or sell foreign currency for genuine transactional purposesonly



Forward Contract

• Commitment by the client to buy or sell one currency against another at a fixedrate for delivery on a specified future date, or during a period

• Corporates can buy or sell outright dollars to hedge genuine underlying exposure

with certain restrictions• Onshore Interbank forward market is liquid upto to 1 year

Currency Swaps

• A transaction in which the bank agrees to exchange specified amount of onecurrency for another currency on future dates at a fixed price

• Cash flows can be exchanged for both principal and interest (cross-currencyswap), interest only (coupon-only swap) and only principal (principal-only swap)

Interest Rates Swaps

• A transaction in which the Bank contracts to exchange a fixed interest liability for a floating interest rate liability or vice versa on behalf of the client

• No exchange of principal amount, only difference in cash flows are settled

• Benchmark rates from NSE MIBOR, 1-year INBMK, 5 year INBMK rates arenormally used

Currency Options

• A currency option is an instrument, which gives the buyer the option the right topurchase (or sell) a specified currency at a specified rate

• Call Options give the buyer the right to buy the currency at the contracted strikeprice and Put Options give the buyer the right to sell a certain currency at the contractstrike price

• Contract could be entered by the corporates having an underlying exposure

Forward Rate Agreement

•

FRA provides means for hedging the interest rate risk and is a contract for exchange of interest payments for a specified period from start date in the future tomaturity date

• There is no exchange of principal amount, only difference in cash flows aresettled

• The settlement is based on the agreed benchmark rate, which could be USDLIBOR, NSE MIBOR, 1 year INBMK, T-Bill rates etc.





FUCNTIONS OF FOREX DEPARTMENT IN AXIS MALL ROAD LUDHIANA

AXIS MALL Road Ludhiana is authorized Dealers in Foreign exchange and thedealer code is—6360042/3300009

International Inward RemittancesWe ensure quick, efficient and safe delivery of your funds to beneficiaries in India. Youcan remit funds to India easily by:

• Transfer through SWIFTThe SWIFT message is a highly secure and efficient method of fund transfer. We havearrangements with over 200 major banks across the globe to receive SWIFT messages.Most of our branches are directly connected to the globe via SWIFT to ensure that your remittances secure and safe from any place of your choice.

• Demand Drafts and ChequesYou can also send remittances to India through demand drafts and cheques payable atour branches.

International Outward Remittances

When any person or firm or organisation resident in India, desires to transfer funds fromIndia to any place outside India, it gives rise to foreign outward remittance. Axis Bank isan Authorised Dealer and has been delegated powers to effect outward remittances onbehalf of their constituents subject to certain conditions and subject to completion of certain formalities, as enumerated in the Exchange Control Manual as amended up todate. Outward remittances can be effected by:



• Transfer through SWIFTThe SWIFT message MT 100 is highly secure, quickest and efficient method of fundtransfer. We have arrangements with over 200 major banks across the globe to receiveSWIFT messages. Most of our branches are directly connected to the globe via SWIFTto ensure that your remittances secure and safe from any place of your choice.

• Demand DraftThis mode of remittance of funds is used when you desire to effect remittance in favour of a named payee by means of an instrument. Upon deposit of rupee equivalent of draftamount together with commission and completion of Exchange Control requirements,you can get the DD issued in foreign currency. You can send the Demand Draft to thebeneficiary, who receives payment from drawee bank on presentation.

Sale or purchase foreign currency and Traveller ChequesAs a part of its expanding travel related services, Axis bank offers a one-stop shop for atraveller's foreign exchange needs. We can deliver foreign exchange in currency notes

or widely accepted travellers cheques according to your convenience. Our servicesinclude:

• Sale of Foreign Currency NotesAs authorised dealers, we have been delegated powers by Reserve Bank of India torelease foreign exchange for foreign travel. The purpose of travel can be business,vacation or education.Our authorized branches can deliver foreign currency notes as per your entitlement in acurrency of your choice. US Dollars and Pound Sterling being the general currencyused by travellers.

• Sale of Foreign Currency Traveller Cheques

Traveller's cheques (TCs) is a convenient risk free form of carrying money and TCs areencashable at a number of locations across the world.All our authorized branches sell foreign currency traveller cheques, which you canpurchase according to your entitlement. You can buy a MasterCard or Visa Travellerscheques issued by American Express, Thomas Cook or Citi-Corp. Travellers chequesare sold in all major currencies.

• Purchase of Foreign Currency Notes and Travellers chequeWe purchase foreign currency notes in all major currencies from:

o Foreign tourists on a visit to India

o Indian residents surrendering surplus foreign currency

o Authorised moneychangers like Hotels, Emporia etc., who have received

foreign currency towards payment of goods and services in the course of their business

o Authorised full-fledged moneychangers







THERE are basically two Forex Branches in Ludhiana

ABOUT AXIS BANK –LUDHIANA MALL ROAD BRANCH

Branch Name The Mall

Branch Id 042



Address Lower Ground Floor,Shop No.AG-01, 02, 03,3 A, 04, 05,05-A, 06, 07, 08, 09, 10, 11,Unit No. 1 & 2,The Boulevard,Plot No.105, Mall Road,Ludhiana 141001

PunjabIndia

MICR Code 141211002

IFSC Code UTIB0000042

SWIFT Code AXISINBB042

Contact Nos. Tel: 0161- 4684600/ 631/ 625/ 690

Fax: 0161- 4684677

Email [email protected] 9.30 a.m. - 3.30 p.m (Monday-Friday)

9.30 a.m. - 1.30 p.m.(Saturday)

Weekly Off: Sunday

Lockers Yes

Axis Bank—Miller Ganj Branch

Miller Ganj

Branch Id 324

Address B-15-179/1, Nirankari Kucha No. 4,Between Vishwakarma Chowk and Dholewal Chowk,G.T. Road,Miller Ganj,Ludhiana 141003PunjabIndia

MICR Code 141211006

IFSC Code UTIB0000324

SWIFT Code AXISINBB324

Contact Nos. Tel: 0161-5093967/8/90161-5095888

Fax: 0161-5019087

Email [email protected]

Timings 9.30 a.m. - 3.30 p.m (Monday-Friday)9.30 a.m. - 1.30 p.m.(Saturday)

Weekly Off: Sunday

Lockers Yes



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