Interim Report

EXECUTIVE SUMMARY

The increasing trend towards globalization and industrialization has increased the trend of competition in the financial market, intensified by the coming of Non-Banking Financial Company (NBFC), like Phillip Capital Securities, and so has the need for the marketing of financial instruments has intensified.NBFCs are financial institutions are the ones which provide banking services without meeting the legal definition of a bank, i.e. one which does not hold a license. They are not allowed to take deposits from public. Nonetheless all the operations of these institutions are covered under banking regulations. This project is completely focused to identify some of the demand drivers, rather factors that make people invest in such institutions and in this regard what are the various differentiating factors that provide Phillip Capital India Pvt Ltd a competitive edge over other players in the market.There has been an emphasis on the various businesses and of Phillip Capital India Pvt Ltd that make it standout in this league, rather than being a me too product.

INDUSTRY OVERVIEWThe Financial MarketThe financial industry or financial services industry includes a wide range of companies and institutions involved with money management, lending, investing, insuring and securities insurance and trading services. The following institutions are a part of the industry: Banks Credit card issuers Investment companies Investment bankers Securities traders Financial planners Security exchangesProducts of the financial market

The major financial crises that have shaped the modern financial industry are: The Great Depression(1929) Black Monday(1987) Asian Financial Crisis(1990) Stock Market Downturn(2002) Sub-prime Crisis (2007)The Classification of financial market in India

What is stock market?Stock market refers to a market place where investors can buy and sell stocks. The price at which each buying and selling transaction takes is determined by the market forces (i.e. demand and supply for a particular stock).Let us take an example of an organization ABC Co. Ltd. which enjoys high investor confidence and there is an anticipation of an upward movement in its stock price. More and more people would want to buy this stock (i.e. high demand) and very few people will want to sell this stock at current market price (i.e. less supply). Therefore, buyers will have to bid a higher price for this stock to match the ask price from the seller which will increase the stock price of ABC Co. Ltd. On the contrary, if there are more sellers than buyers (i.e. high supply and low demand) for the stock of ABC Co. Ltd. in the market, its price will fall down. In earlier times, buyers and sellers used to assemble at stock exchanges to make a transaction but now with the dawn of IT, most of the operations are done electronically and the stock markets have become almost paperless. Now investors dont have to gather at the Exchanges, and can trade freely from their home or office over the phone or through Internet.A number of brokerage houses make sure the hassle free investment in stocks. Asset management firms allow investors to estimate both the expected risks and returns, as measured statistically. There are mainly two types of Portfolio management strategies. Passive Portfolio Strategy Active Portfolio StrategyPassive Portfolio Strategy: A strategy that involves minimal expectation input, and instead relies on diversification to match the performance of some market index. A passive strategy assumes that the marketplace will reflect all available information in the price paid for securitiesActive Portfolio Strategy: A strategy that uses available information and forecasting techniques to seek a better performance than a portfolio that is simply diversified broadly.

The Stock Market: A Look BackIn the book "Triumph Of The Optimists: 101 Years Of Global Investment Returns" (2002), Elroy Dimson, Paul Marsh and Mike Staunton offer the most complete study of historical global market returns. The book documents market returns for 16 countries from 1900 to 2000. From this research, it is evident that three important changes took place in the global stock market in the last century: 1. The U.S. achieved market dominance2. The exchanges were consolidated3. Secularsector rotation occurredUnfortunately, understanding the past doesn't necessarily make predicting the markets' future any easier.1. The U.S. achieved market dominanceSince the U.S. stock market was the big winner of the twentieth century, itsweightingincreased to 47% of the world's total and, in general, it performed more favourably than the rest of the world's markets. This occurred for a number of reasons, but chief among them were larger investments in physical andhuman capital, greater technological advancement and greater productivity growth. With its huge investment demand and technological superiority, the U.S. investment industry was a worldwide leader.According to authors of the book, it took the U.K. much longer to recover from the world wars. Its diminished role after the collapse of the British Empire and the complicated bureaucracies of the colonial system slowed the U.K.'s growth immeasurably. Problems with defence spending, labour, productivity and investment plagued the British economy and markets until the mid-1970s.Few investors in 1900 could have predicted the monumental changes that would take place in the world after 1913. The two world wars, socialist revolutions, the Great Depression and theBretton Woods Agreementall had a profound impact on the global economy and stock markets until the 1970s. "Triumph of The Optimists" argues that economic and stock market performance in the U.S. has not been typical of other countries and, therefore, should not necessarily be extrapolated into the future.The graphs below show a breakdown of the world markets in both 1900 and 2000 and the anomalous growth of the U.S. market during this time.

2. Globalization and ConsolidationThe stock markets of 1900 had moreregional exchangesthan those of today. For example, Dimson, Marsh and Staunton state that the U.S. and U.K. each had 20 to 30 different regional exchanges. Most of these exchanges - such as the Los Angeles Exchange, which dealt with the petroleum industry - focused on the industries prevalent in their areas.The difference between the number of exchanges in the early-twentieth century and the number that exists today is due mostly to advancements in telecommunications and innovation within financial markets. In "Globalization Myths" (1996), Paul Bairoch and Richard Kozul-Wright describe how, between 1930 and 1990, the cost of a three-minute telephone call from New York to London dropped from $245 to $3. Advancements like these have propelled theglobalizationof our economy and its financial markets. Today, New York, London and Tokyo are widely regarded as the world's financial centres, and technological advances have allowed them to be interconnected despite the distance between them. As a result, the twenty-first century global economy is defined by financial centres rather than smaller regional exchanges.3. Sector RotationMany investors today focus on short-termsector rotationto add value to their portfolios. According to Dimson, Marsh and Staunton's research, this type of rotation pales in comparison to the changes that can take place over the long term. Just as a country's influence over global economics evolves, so do the sectors of an economy.From the old record we can find that the economies of 1900 and 2000 had few similarities. Of particular note are the sectors that were small in 1900 and 2000. 84% of the sectors today were of immaterial size or were non-existent at the beginning of the last century. These sweeping changes also make extrapolating future market performance from past events difficult.Change is inevitable, but one thing is certain: the stock markets of 2100 will look very different than those of today. The incredible advancements in telecommunications have left their mark on the world stock markets, and major centres like New York, London and Tokyo now dominate a once fragmented marketplace. In light of all the changes that the markets have undergone so far, basing it on what has occurred in the past may not make sense.

History of the Indian Stock MarketOne of the oldest stock markets in Asia, the Indian Stock Markets have a 200 years old history. In 18th Century East India Company was the dominant institution and by end of the century, business in its loan securities gained full momentum. 1830's Business on corporate stocks and shares in Bank and Cotton presses started in Bombay. Trading list by the end of 1839 got broader. 1840's Recognition from banks and merchants to about half a dozen brokers. 1850's Rapid development of commercial enterprise saw brokerage business attracting more people into the business. In 1860's the number of brokers increased to 60.Now in India, two stock exchanges exist namely BSE and NSE.History of Bombay Stock Exchange(BSE)It is an Indianstock exchangelocated atDalal Street,Kala Ghoda,Mumbai, Maharashtra,India. It was established in 1875 and is considered to be one of Asias fastest stock exchanges, with a speed of 200 microseconds and one of Indias leading exchange groups and the oldest stock exchange in the South Asia region. More than 5500 companies are listed on BSE making it world's No. 1 exchange in terms of listed members. The companies listed on BSE command a total market capitalization of USD 1.68 Trillion as of March 2015. It is also one of the world's leading exchanges (5th largest in March 2015) for Index options trading.The Bombay Stock Exchange is the oldest exchange in Asia. It traces its history to 1855, when four Gujarati and one Parsi stockbroker would gather under banyan trees in front of Mumbai's Town Hall. The location of these meetings changed many times as the number of brokers constantly increased. The group eventually moved to Dalal Street in 1874 and in 1875 became an official organization known as "The Native Share & Stock Brokers Association".Over the past 140 years, BSE has facilitated the growth of the Indian corporate sector by providing it an efficient capital-raising platform. Popularly known as BSE, the bourse was established as "The Native Share & Stock Brokers' Association" in 1875. BSE provides an efficient and transparent market for trading in equity, debt instruments, derivatives, mutual funds. It also has a platform for trading in equities of small-and-medium enterprises (SME).Historically an open outcry floor trading exchange, the Bombay Stock Exchange switched to an electronic trading system developed by CMC Ltd in 1995. It took the exchange only fifty days to make this transition. This automated,screen-based trading platform called BSE On-line trading (BOLT) had a capacity of 8 million orders per day. The BSE has also introduced a centralized exchange-based internet trading system,BSEWEBx.co.into enable investors anywhere in the world to trade on the BSE platform.BSE also provides a host of other services to capital market participants including risk management, clearing, settlement, market data services and education. It has a global reach with customers around the world and a nation-wide presence. BSE systems and processes are designed to safeguard market integrity, drive the growth of the Indian capital market and stimulate innovation and competition across all market segments. BSE also provides depository services through its Central Depository Services Ltd. (CDSL).BSE's popular equity index - the S&P BSE SENSEX - is India's most widely tracked stock market benchmark index. It is traded internationally on the EUREX as well as leading exchanges of the BRCS nations (Brazil, Russia, China and South Africa).As the first stock exchange in Asia and the pioneer of securities transaction business, BSE prides itself on being at the forefront of bringing innovations to the Indian capital markets while creating diverse investment opportunities for the investor community in India throughout its long history.Historyof NSE (National Stock Exchange)TheNational Stock exchange, in Bombay is the largest Stock exchange ofthe countryand the third largest in the world. Before the NSE, the Indian securities industry was inefficient due to lack of proper infrastructure and a few select brokerage firms controlling the industry. There was a great resistance to setting up modern facilities and innovative infrastructure.The basic idea of setting up the NSE was facilitating computerizedmarket trading. The intention was to set up a vibrant and viable debt market, and in the middle of 1993 it came into existence.The tradingstarted in the middle of 1994.The NSE is jointlyowned bya group offinancial institutions, Insurance companies, banksand otherfinancialintermediaries. In the completely de-mutualised exchange the ownership has no bearing to trade. The objective is to place all investors acrossthe countryin more than 1200 cities on equal footing.This was done by competitively harnessing the latest technology and adapting a new system of operations through the VSAT (Very Small Earth Based Aperture Terminals) terminals. The fully automatic screen based trading system is based on the principle of an order driven market which provides complete flexibility to the participants. There are no trading floors as in conventional stock exchanges.The tradingis entirely screen based with automatic order processing. One can obtain the entire market information, which is dynamically updated, at the click of a button. The system also conceals the identity of the market operators. As the market investors can sit and operate from their own houses and homes, they have all the facilities of back officesupport. The connection with other traders through the satellite link is established, and each member receives themarket informationat the same time.The NSE is one of the first stock exchanges in the world to use the VSAT system for end-to-end connectivity and computer based trading. NSE has completely shiftedthe tradingplatform from the floors of the Stock Exchange to the computer terminals at the brokerage firms and further to personal computers and laptops in the investors homes and offices!The NSE is one of the very few exchanges in the world trading all kinds of securities on a single platform. The three mutually exclusive segments of the NSE are: Capital Market segment Wholesaleand Debt Market segment Futures Adoptions TradingThe capital Market Segment covers trading in equities and retail trade in convertible and non-convertible debentures and hybrids. This segment covers the securities of medium and large companies with nationwide investor base. This might include securities which are being traded on other exchanges as well. The Capital Market increases the volume of trade and liquidity considerably.Thewholesaleand Debt Market segment of the NSE is a facility for institutions including subsidiaries of banks which are involved in financial services and other corporate bodies.The tradingsystem facilitates making of two way quotes in a very flexible manner.These three trading platforms were established one after the other. ThewholesaleDebt market commenced its operations in June 1994 and the Capital Market Segment started operating at the end of 1994.The futures and options segment began in 2000, and today the NSE holds the 14th position in the 40 futures and Exchanges today.A company that wants to get listed with the NSE needs to enter a listing agreement and is required to pay the specified listing fees. It also needs to adhere to all the clauses of the agreement and to send details of book closure, record dates, annual and half yearly reports, and cash flow statements.The NSE has emerged as the worlds third largest growing bourse today with such a large number of companies being listed every day. It has outpaced world leaders such as theLondon Stock Exchange, NASDAQandNYSE.The NSE can handle up to 1 million trades per day .It recorded a 15% jump in the number of listed firms of 1244 during the one year period which ended in April 2007.WHAT IS DE-MAT ACCOUNT?Definition:De-mat account is a safe and convenient means of holding securities just like a bank account is for funds. Today, practically 99.9% settlement (of shares) takes place on De-mat mode only. Thus, it is advisable to have a Beneficiary Owner (BO) account to trade at the exchanges.Benefits Of De-mat Account:1. A safe and convenient way of holding securities. (Equity and debt instruments both). 2. Transactions involving physical securities are costlier than those involving dematerialized securities (just like the transactions through a bank teller are costlier than ATM transactions). Therefore, charges applicable to an investor are lesser for each transaction. 3. Securities can be transferred at an instruction immediately. 4. Increased liquidity, as securities can be sold at any time during the trading hours (between 9:00 AM to 3:30 PM on all working days), and payment can be received in a very short period of time. 5. No stamp duty charges. 6. Risks like forgery, thefts, bad delivery, delays in transfer etc, associated with physical certificates, are eliminated. 7. Pledging of securities in a short period of time. 8. Reduced paper work and transaction cost. 9. Odd-lot shares can also be traded (can be even 1 share). 10. Nomination facility available. 11. Any change in address or bank account details can be electronically intimated to all companies in which investor holds any securities, without having to inform each of them separately. 12. Securities are transferred by the DP itself, so no need to correspond with the companies. 13. Shares arising out of bonus, split, consolidation, merger etc. are automatically credited into the De-mat account of the investor. 14. Shares allotted in public issues are directly credited into De-mat account of the applicants in quick time.

Is a DEMAT account a must?Now a day, practically all trades have to be settled in dematerialized form. Although the market regulator, the Securities and Exchange Board of India (SEBI), has allowed trades of up to 500 shares to be settled in physical form, nobody wants physical shares any more. So a de-mat account is a must for trading and investing.

Financial Terms related to Stock marketI. Nifty 50The 50 stocks that were most favoured by institutional investors in the 1960s and 1970s. Companies in this group were usually characterized by consistent earnings growth and high P/E ratios.II. SensexAn abbreviation of the Bombay Exchange Sensitive Index (Sensex) - the benchmark index of the Bombay Stock Exchange (BSE). It is composed of 30 of the largest and most actively-traded stocks on the BSE. Initially compiled in 1986, the Sensex is the oldest stock index in India.III. InflationThe rate at which the cost of living increases is termed as inflation. It is simply the costs to buy the goods and services you need to live. Inflation causes money to lose value as the same amount of money will not buy the same amount of a good or a service in the future as it does now or did in the past.IV. EquityEquity investments are basically investments in shares of companies which are listed/being listed on trading exchanges. Stocks can be bought/sold from the exchanges (secondary market) or via IPOs Initial Public Offerings (primary market).V. ShareShares define the portion of investment an investor has made in a particular company at a given price. The total equity capital of a company is divided into equal units of small denominations, each called a share. The holders of such shares are members of the company and have voting rights.VI. DerivativeIt is a product whose value is derived from the value of one or more basic variables, which is called underlying. The underlying asset can be equity, commodity or any other asset. These products had initially emerged as hedging devices to safe guard an individual/ organization from the volatility of commodity prices over a period of time.VII. IndexAn Index is a basket of securities and the average price movement of the basket of securities indicates the index movement, whether upwards or downwards. The leading Indices in the Indian markets are based on BSE and NSE Exchanges. These indices are a reflection of the overall price movement in the market.VIII. DepositoryA depository is like a bank wherein the deposits are securities (viz. shares, debentures, bonds, government securities, units etc.) in electronic form. In India currently there are two depositories namely National Securities Depository Limited (NSDL) & Central Depository services Limited (CDSL)IX. NSDLNational Securities Depository Limited is an Indian central securities depository based in Mumbai. It was established in 1995 as the first electronic securities depository in India with national coverage based on a suggestion by a national institution responsible for theeconomic developmentof India.X. CDSLCentral Depository Services Limited, is the second Indian central securities depository based in Mumbai. Its main function is the holding securities either in certificated or uncertificated form, to enable book entry transfer of securities.XI. DematerializationPrior to the concept of electronic exchanges shares were issued to investors in physical form. Dematerialization is the process by which physical certificates of an investor are converted to an equivalent number of securities in electronic form and credited to the investors account with his Depository Participant (DP).

XII. SEBIThe Securities and Exchange Board of India (SEBI) is the regulatory authority in India established under Section 3 of SEBI Act, 1992. It provides SEBI with statutory powers for protecting the interests of investors in securities, promoting the development of the securities market and regulating the securities market.

THE BROKERAGE INDUSTRYThe brokerage industry is currently characterized by a large number of companies (private or unorganized). In effect it is a fragmented industry with a large number of participants. The industry thus has monopolistic competition, i.e. a large number of firms selling a slightly differentiated product.Indian stock broking industry is the oldest trading industry that has been around even before the establishment of BSE in 1875. Despite passing through a number of changes in post liberalization period, the industry has found its way towards sustainable growth. With the purpose of gaining deeper understanding about the role of Indian stock broking industry, in the countrys economy, here are some data gleaned from analysis of secondary research.On the basis of recent research: On the basis of geographical concentration, Western region has maximum of 52%, around 24% are located in the North, 13% in South, and 10% in the East. 3% of firms started broking operations before 1950, 65% between 1950-1995, and 32% post 1995. On the basis of terminals 40% are located in Mumbai, 12% in Delhi, 8% in Ahmadabad, 7% in Kolkata, 4% in Chennai, and 29% in other cities. From the study it was found that 36% of firms trade in cash, 27% in derivatives, and 20% in cash, derivatives and commodities. In cash market, 34% trade in NSE, 14% in BSE, 45% in both. Whereas in debt market, 31% trade in NSE, 26% trades in BSE, and 43% in both. Maximum branches are located in North (40%), 31% in West, 24% in South, and 5% in East. In terms of sub-brokers, approx. 55% are located in South, 29% in West, 11% in North, and 4% in East. The top three products Trading, IPOs and Mutual Funds are offered by 90% of firms offering trading, 67% IPOs, and 53% offering Mutual Fund transaction. 84% of firms have shown their interest in expanding their institutional clients, 66% firms intend to increase FIIs, and 34% are interested in setting up Joint Ventures in India and abroad. 62% firms provide their website, and 90% have email facility.Various Brokerage terminals in different regions of India:Almost 52% of the terminals in the sample are based in the Western region of India, followed by 25% in the North, 13% in the South and 10% in the East. Mumbai has got the maximum representation from the West, Chennai from the South, New Delhi from the North and Kolkata from the East.Maximum numbers of terminals are present in Mumbai i.e. 40% terminals are located in Mumbai while 12% are from Delhi, 8% from Ahmadabad, 7% from Kolkata, 4% from Chennai and 29% are from other cities in India.

Branches and sub-brokers in various regions:The maximum concentration of branches is in the North, with as many as 40% of all branches located there, followed by the Western region, with 31% branches. Around 24% branches are located in the South and East constitutes for 5% of the total branches.In case of sub-brokers, almost 55% of them are based in the South. West and North follow, with 30% and 11% sub-brokers respectively, whereas East has around 4% of total sub-brokers.

ANALYSIS OF BROKERAGE INDUSTRY BASED ON MICHAEL PORTERS 5 FACTOR MODEL

Competition (Impact high)The industry is now in a fairly high growth phase. However the brokerage industry is very cyclical and is impacted by activity levels in the markets. During the downturns such as 2008-2009 periods, the smaller players were squeezed out of the business. But now after MODI govt. came into power, share market started growing and many players have entered again into the market. As a result there is a contrast consolidation happening in the industry. Threat of new entrants (Impact Medium)A new entrant in addition to the above also needs a reasonable level of capital to fund the working requirements of the business (finance to customers, deposits with exchanges, etc.).The scale requirements are increasing constantly and as a result a new entrant will require higher levels of investments in the future to enter the business. As pointed out, it is likely to see many entrants in the industry. On the contrary, it is likely that the smaller players will exit by selling out or closing. Power of the supplier (Impact Medium)Not much relevant in most segments except investment banking, where employees control client relationships and hence have to be highly compensated. Power of the buyers/customers (Impact Medium)This is important in the institutional brokerage business which involves high volume and low brokerage charges. The extent of buyer power is very low to non-existent in all kinds of retail segments. Threat of substitutes (Impact low)The products offered by all firms in this industry are more or less differentiated. Investing rather saving in the bank rather than investing in a brokerage firm can be one option; else this is not applicable for this industry.In a summary the industry has a moderate to low level of competitive advantage. There is low level of customer lock-in and customer will move his or her business if the brokerage rates are not competitive with rest of the industry. The only competitive advantage for companies in this sector comes from size and scale which enables them to leverage their size to reduce average costs and thus make a profit on low brokerage margins.In addition to high fixed costs, the industry has very low margin cost. As a result the cost of adding an additional customer is low and per transaction costs are limited. Due to this reason, we are seeing a constant pressure on the brokerage rates has intensified the competition in the industry and is resulting in consolidation with the top players.The basic brokerage business is now sometimes a loss leader to enable the brokerage firm to acquire customers and sell other products such as wealth management services, or third party mutual funds. This segment will provide adequate returns in the future for a company with scale.

COMPANY OVERVIEWPhillip Capital Inc.Phillip Capital has grown as an integrated Asian financial house since its origin in 1975. With a global presence it offers a full range of quality and innovative services to retail, corporate and institutional customers. Phillip Capital (with headquarters in Singapore) operates in the financial hubs of 16 countries, with offices in Singapore, Malaysia, Cambodia, Indonesia, Thailand, Hong Kong, China, Japan, India, Sri Lanka, UAE, UK, France, Turkey, Australia and USA.Phillip Capital (India) Pvt Ltd. Phillip Capital (India) Pvt Ltd. is a part of thePhillip Capital GroupSingapore. Phillip Capital India headquartered in Mumbai is a financial intermediary. It offers stock market trading, distribution of Mutual Funds, Margin Funding for retail/corporate clients as well as execution and clearing services. Phillip Capital team has experience across market and product segments and with the lineage of Phillip Capital Group, aims to provide efficient solutions to Institution and Retail Clients. The securities broking arm in India has been a dominant part of the Indian securities market place in the past decade. The team has experience across market / product segments and with the lineage of Phillip Capital Group, aims to provide efficient solutions to the Indian marketplace for all trading requirements. The commodities broking arm in India is one of the pioneering service providers for access to local commodity futures. Worked extensively with institutional clients as well as HNIs and retail clients across asset classes.Phillip Commodities India Pvt Ltd.Phillip Commodities India Pvt Ltd is a 100% subsidiary of Phillip Capital (India) Pvt Ltd and is headquartered in Mumbai. Phillip Commodities India Pvt Ltd is a member of Multi Commodity Exchange (MCX), National Commodity and Derivatives Exchange Ltd. (NCDEX), Indian Energy Exchange (IEX) and NCDEX Spot Exchange Ltd. (NSPOT). We have an experienced and qualified in-house research analysis team which provides quality research output to our clients which help them to make appropriate trading strategies.

Vision of the companyTo be a part of integrated Asian Financial House with a global presence using Information Technology and Distribution as our core competencies in the provision of financial services.Core Values They follow Customer Driven Approach. In their organization, Teamwork prevails over Individualism. They follow ethical practices in our dealings. They want to capture opportunities and constantly adjust themselves to the needs of their customers. To add meaningful value to their service and deliver superior experience to their clients. To be one of the preferred broking house in India across all customer segments.Products & Services Stock broking Private equity Debt capital market Fund management Future derivative and commodities Corporate finance Portfolio management services Wealth management ResearchBusiness Model Client-DrivenPhillip Capital experienced professionals are focused on providing the best execution and clearing services to help clients achieve their trading or hedging objectives.

Market ExperienceThrough a global network built over years of hard-won success and a commanding presence on the worlds major exchanges, Phillip Capital India opens doors to an expansive range of products and services.Objective InsightWith a focus on objective, thought-leading research, Phillip Capital India offers clients practical and timely insight to capitalize on market opportunity.Trusted RelationshipBy cultivating a deep understanding of client needs, our professionals provide a trusted perspective and customized execution and clearing services through the life of our relationship. Other Services provided by the company in INDIA Portfolio Management Services Margin Funding Depository NSDL / CDSL Distribution products Mutual Funds / IPO / FD / Bonds etc. Corporate Bonds Loan against shares Online Trading Applications Securities Lending and Borrowing Multi Asset Class Research Algo Trading

Trading Platforms provided by the company for Local and Global Markets

COMPETITOR ANALYSISINDIABULLSIn middle of 1999, when e-commerce was just about starting in India, Sameer Gehlaut and his close IIT Delhi friend Rajiv Rattan got together and bought a defunct securities company with a NSE membership and started offering brokerage services. A Few months later, their friend Saurabh Mittal also joined them. By December 1999, the company embarked on its journey to build one of the first online platforms in India for offering internet brokerage services. In January 2000, the 3 founders incorporated Indiabulls Financial Services and made it as the flagship company.In mid-2000, Indiabulls Financial Services received venture capital funding from Mr. L.N. Mittal & Mr. Harish Fabani. In late 2000, Indiabulls Securities, a subsidiary of Indiabulls Financial Services started offering online brokerage services and simultaneously opened physical offices across India. By 2003, Indiabulls securities had established a strong pan India presence and client base through its offices and on the internet. In September 2004, Indiabulls Financial Services went public with an IPO at Rs 19 a share. In late 2004, Indiabulls Financial Services started its financing business with consumer loans. In March 2005, Indiabulls Properties Private Ltd, a subsidiary of Indiabulls Financial Services, participated in government auction of Jupiter Mills, a defunct 11 acre textile mill owned by NTC in Lower Parel, Mumbai. Indiabulls Properties private Ltd won the mill in auction and that purchase started Indiabulls real estate business. A few months later, Indiabulls Real Estate company Pvt ltd bought Elphinstone mill in Lower Parel, another textile mill auctioned by NTC.INDIABULLS GROUP OF COMPANIES

PRODUCT & SERVICES OFFERED BY INDIA BULLS Equity & Debt Stock Broking Insurance Commodity trading Depository Services Derivatives Broking Services Equity Research Services Mutual Fund Distribution IPO DistributionRELIGARE SECURITIES LIMITEDReligare Enterprises Limited is Ranbaxy Laboratories Limited promoted financial product and service Provider Company. Religare provides its service in three different segments including Retail, Wealth management and the Institutional spectrum. It offers wide range of services including equities, commodities, insurance broking, wealth advisory, PMS, personal finance services, Investment banking and institutional broking services. Religare retail network spreads across more than 900 locations across more than 300 cities and towns in India.Religare Securities Limited is a subsidiary company of Religare Enterprises Ltd and involve in equity related services include online trading at BSE and NSE, Derivatives, commodities, IPO, Mutual fund, Investment banking and institutional broking services. REL offers a multitude of investment options and a diverse bouquet of financial services and can boast of a reach that spreads across the length and breadth of the country with its presence in more than 1460 locations across more than 450 cities and towns. PRODUCTS & SERVICES OFFERED BY RSL Equity & Derivatives Research and Advisory Depository Portfolio Management Services International Advisory Fund Management Services (AFMS) Investment Banking ICICI DIRECTICICI Web Trade Limited (IWTL) maintains www.icicidirect.com (herein after referred to as the "Website") whereas IWTL is an affiliate of ICICI Bank Limited and the Website is owned by ICICI Bank Limited. IWTL has launched and established an online trading service on the Website. PRODUCTS AND SERVICES OF ICICI DIRECT Investing in Mutual funds Personal Finance Customer Service Features IPOs Margin Trading Margin Plus Trading Call Trade Trading on NSE/BSE Trade in DerivativesINDIA INFOLINE SECURITY PRIVATE LTD.India Infoline.com Securities Pvt Ltd. is a wholly owned subsidiary of India Infoline.com Ltd and is the stock broking arm of India Infoline.com. The subsidiary was formed to comply with regulatory guidelines. www.5paisa.com is a focused website for online stock market trading. 5paisa.com is a trade name owned by the India Infoline.com group. IILSPL has applied for trading membership of the BSE under Securities and Exchange Board of India (Stock Brokers and Sub-Brokers) Rules 1992. PRODUCT OFFERED BY IILSPLStock market:-IILSPL deals in stock market by trading in equity and derivatives.Personal finance: - It Deals In Mutual Fund and Insurance.Online Trading: - It provides services in stock and commodity trading (through Internet).HDFC SECURITYHDFC security is the subsidiary of HDFC (Housing Development Financial Corporation). www.hdfcsec.com would have an exclusive discretion to decide the customers who would be entitled to its online investing services. www.hdfcsec.com also reserves the right to decide on the criteria based on which customers would be chosen to participate in these services .The present web site (www.hdfcsec.com) contains features of services that they offer/propose to offer in due course. The launch of new services is subject to the clearance of the regulators i.e. SEBI, NSE and BSE.PRODUCT & SERVICES OFFERED BY HDFC SECURITY Online trading for Resident & Non Resident Indians Cash-n-Carry on both NSE and BSE Day trading on both NSE and BSE Trade on Futures & Options on the NSE Online IPO's Telephone-based Broking (Equity & Derivatives)