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PROJECT REPORT On “ANALYSIS OF CONSUMER BEHAVIOR TOWARDS SHARE TRADING AND SALES PROMOTION OF INDIABULLS SECURITIES LTD” In the partial fulfillment of the two year full time PGDBM (Equivalent to MBA) Project Guide Faculty Guide Mr. Vijay Babbar Miss Rashmi Sundryal Divisional Sales Head NDIM Indianbulls Securities Ltd. New Delhi New Delhi Submitted by: Uttam Seth
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PROJECT REPORT

On

“ANALYSIS OF CONSUMER BEHAVIOR TOWARDS SHARE TRADING AND

SALES PROMOTION OF INDIABULLS SECURITIES LTD”

In the partial fulfillment of the two year full time PGDBM(Equivalent to MBA)

Project Guide Faculty Guide

Mr. Vijay Babbar Miss Rashmi SundryalDivisional Sales Head

NDIM

Indianbulls Securities Ltd. New Delhi New Delhi

Submitted by:

Uttam SethRoll No: 68

PGDBM (2004-06)

New Delhi Institute of Management60-61 Tughlakabad Institutional Area \

New Delhi-110062

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ACKNOWLEDGEMENTS

I would like to express my sincere thanks to Indiabulls

Securities Ltd., Delhi for giving me the opportunity to carry out the

Summer Internship Program in their organization. The whole period

spent with the organization has been of immense learning

experience about the Indian Stock Market.

Preparing a project of such a kind is not an easy task in itself and I

am sincerely thankful to all those people who help me lot, in

preparing and completing this project.

I am grateful to Indiabulls Securities Ltd. who has given me this

opportunity to carry out the project “Analysis of Consumer

Behavior Towards Share Trading and Sales Promotion of

Indiabulls Securities Ltd.” A study on investor’s perception their

behavior about equities.

I sincerely thank to Mr. Vijay Babbar (Divisional Sales Head,

Indiabulls Securities Ltd., Delhi) for providing me this valuable

learning opportunity.

I would also like to thank Ms. Rashmi Sundryal – Faculty Guide,

NDIM- Delhi for her valuable guidance and insight amidst her busy

schedule.

Finally I would like to thank Mr. Vineet Chandani (Relationship

Manager) my project supervisor without his help and guidance the

completion of this project would have become difficult task.

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INDEX

OBJECTIVE

HISTORY OF STOCK EXCHANGE

COMPANY PROFILE

a) Introduction

b) Philosophy

c) History and other corporate matters overview

SHARE TRADING

ORGANIZATION CHART

PRODUCTS AND SERVICES

INDIABULLS – IN NEWS 2005

RESEARCH METHODOLOGY

FINDINGS AND ANALYSIS

RECOMMENDATIONS

BIOBLIOGRAPHY

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EXECUTIVE SUMMARY

Investing in equities in a market like India is speculative and

involves risk that may be greater than other types of investment

strategies. Before investing an Investor should be careful enough

about him investment decision to avoid erosion of wealth. As seen

in the recent times the volatility of market is more detrimental to

the retail investors as it seems to be lucrative for speculative gains

of short duration of time. Hence an investor has to evaluate his

options carefully for a prudent investment, keeping long-term

horizon in mind.

The report has tried to bring out the parameters those are of

paramount importance to general public dealing in an equity trading

on day-to day and delivery base trading. The working methodology

has been discussed i.e. the data collection methods, sampling

methods and the survey questionnaire methods. Thee

questionnaire prepared is designed so as to cover a wide range of

customer “touch points”

The report given a view about the investors perception that what

thy think while making investments in shares.

A sample of 100 people was selected randomly and survey was

done as per the parameters of the questionnaire. The results of

every parameter have been included in this report and shown

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graphically (Pie Charts, bar graphs etc.) A complete structure of the

research design has been included.

Apart from above discussed points the brief history of Indiabulls

Securities Ltd, its business diversification and a brief introduction

about the concept of share trading.

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OBJECTIVE

To study investor’s behavior towards different attributes such as

risk, return, liquidity etc. of investment in Equities.

To study the issues and challenges that investor’s face while

making investment in share market.

To study the preferences and perceptions of investors regarding

various financial products from the stable of Indiabulls Securities

Ltd. so that the firm can benefit from the findings of the report in

launching any new investment product in future.

To study the consumers perception in respect of investment in

shares Trading.

To study about Risk Management with the help of equities.

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HISTORY OF STOCK EXCHANGE

The only stock exchanges operating in the 19th century were those

of Bombay set up in 1875 and Ahemadabad set up in 1894. These

were organized as voluntary non-profit making organization of

brokers to regulate and protect their interests. Before the control on

securities trading became a central subject under the constitution in

1950, it was a state subject and the Bombay securities contract

(CONTROL) Act of 1952 used to regulate trading in securities. Under

this Act, the Bombay stock exchanges in 1927 and Ahemadabad in

1937.

During the war boom, a number of stock exchanges were organized

in Bombay, Ahemadabad and other centers, but they were not

recognized. Soon after it became a central subject, central

legislation was proposed and a committee headed by A.D. Gorwala

went into the bill for securities regulation. On the basis of

committee’s recommendations and public discussions the securities

contracts (regulations) Act became law in 1956.

Definition of Stock Exchange

“Stock exchange means anybody or individuals whether

incorporated or not, constituted for the purpose of assisting,

regulation or controlling the business of buying, selling or dealing in

securities.”

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It is an association of member brokers for the purpose of self

regulation and protecting the internets of its members. It can

operate only if it is recognized by the Govt. under the securities

contract (regulation) Act, 1956 the recognition is granted under

section 3 of Act by the Central Govt. ministry of finance.

Byelaws

Beside the above act, the securities contract (regulation) rules were

also made in 1975 to regulate certain matter of trading on Stock

Exchange. These are also byelaws of the exchanges, which are

concerned with following subjects.

Opening/Closing of the Stock Exchange, timing of trading, regulation

of blank transfer, regulation of Badla or carryover business, control

of statement, and other activities of stock exchange, fixation of

margins, fixation market price or making price, regulation of

intraday (jobbing), regulation of broker trading, brokerage charges,

trading rules on exchanges, attribution and settlement of disputes,

settlement and clearing of the trading etc.

Regulation of stock exchange

The securities contract (regulation) is the basis of the stock

exchange in India. No exchange can operate legally without the

Govt. permission or recognition. Stock exchanges are given

monopoly in certain areas under section 19 of the above Act to

ensure that the control and regulation are facilitated. Recognition

can be granted to a stock exchange provided certain condition are

satisfied and the necessary information is supplied to the

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government. Recognition can also be withdrawn, if necessary.

Where there are no stock exchanges, the government can license

some of the brokers to perform the function of stock exchange in its

absence.

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SECURITIES AND EXCHANGE BOARD OF INDIA (SEBI)

SEBI was setup as an autonomous regulatory authority by the

Government of India in 1988 “to perform the interest of investors in

the securities and to promote the development of, and to regulate

the securities market and for matters connected therewith or

incidental thereto.” It is empowered by two Acts namely the SEBI

act, 1992 and the securities contract (regulation) Act 1956 to

perform the function of protecting investor’s right and regulating

the capital market.

Bombay Stock Exchange

The stock exchange, Mumbai, popularly known as “BSE” was

established in 1875 as “The Native share and stock broker

association”, as a voluntary non-profit making association. It has an

evolved over the year into its present status as the premiere stock

exchange in the country. It may be noted that the stock exchanges

the oldest one in the Asia, even older than the Tokyo Stock

Exchange, which was founded in 1878.

The Exchange, while providing an effective and transparent market

for trading in securities, uphold the interest of the investors and

ensure redressed of their grievances, whether against the

companies or its own member brokers. It also strives to educate and

enlighten the investors by making available necessary informative

inputs and conducting investor education programmes.

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A governing board comprising of 9 elected directors, 2 SEBI

nominees, 7 public representatives and an executive director is the

apex body, which decides the policies and regulates the affairs of

the exchanges.

The executive director as the chief executive officer is responsible

for the day today administration of the exchange. The average

daily turnover of the exchange during the year 2000-01 (April-

March) was Rs. 3984.19 crores and average number of daily trades

5.69 lakhs.

However the average daily turn over of the exchange during the

year 2001-02 has declined to Rs. 1244.10 crores and number of

average daily trades during the period to 5.17 lakhs.

The average daily turn over of the exchange during the year 2002-

03 had declined and number of average daily trades during the

period is also decreased.

The Ban on all deferral products like BLESS AND ALBM in the Indian

capital markets by SEBI with effects from July 2, 2001, abolition of

account period settlements, in all scripts traded on the exchanges

with effect from Dec 31, 2001, etc., have adversely impacted the

liquidity and consequently there is a considerable decline in the

daily turn over at the exchange. The average daily turn over of the

exchange present scenario is 110363 (laces) and number of

average daily trades 1057 (laces).

BSE Indices

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In order to enable the market participants analysis etc., to track the

various ups and downs in the Indian stock market, the Exchange has

introduced in 1986 an equity stock index called BSE-SENSEX that

subsequently became the barometer of the moments of the share

prices in the Indian Stock market. It is a “Market capitalization

weighted” index of 30 components stocks representing a sample of

large, well-established and leading companies. The base year of

Sensex is 1978-79. The Sensex is widely reported in both domestic

and international markets through print as well as electronic media.

Sensex is calculated using a market capitalization weighted method.

As per this methodology, the level of the index reflects the total

market value of all 30-component stocks form different industries

related to particular base period. The total market value of a

company is determined by multiplying the price of its stock by the

number of shares outstanding. Statisticians call an index of a set of

combined variables (such as price and number of shares) a

composite Index. An Indexed number is used to represent the

results of this calculation is order to make the value easier to work

with the track over a time. It is much easier to graph a chart based

on Indexed values than one based on actual values world over

majority of the well-known Indices are constructed using “Market

capitalization weighted method”.

In practice, the daily calculation of SENSEX is done dividing the

aggregate market value of the 30 companies in the Index Divisor.

The keeps the Index comparable over a period or time and if the

reference point for the entire Index maintenance adjustments.

SENSEX is widely used to describe the mood in the Indian Stock

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Markets. Base year average is changed as per the formula new

base year average = old base year average* (new market value/old

market value).

National Stock Exchange

The NSE was incorporated in Now 1992 with an equity capital of

Rs. 25 crores. The international securities consultancy (ISE) of Hong

Kong has helped in setting up NSE. ISE has prepared the detailed

business plans and installation of hardware and software systems.

The promotions for NSE were financial institutions, insurance

companies, banks an SEBI capital market ltd., Infrastructure leasing

and financial services ltd. and stock holding corporation ltd.

It has been set up to strengthen the move towards

professionalisation of the capital market as well as provide nation

wide securities trading facilities to investors.

NSE is not an exchange in the traditional sense where brokers own

and mange the exchange. A two tier administrative set up involving

a company board and a governing abroad of the exchange is

envisaged.

NSE is a national market for share PSU bonds, debentures and

government securities since infrastructure and trading facilities are

provided.

NSE-NIFTY

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The NSE on April 22, 1996 launched a new equity Index. The NSE-

50. The new index, which replaces the existing NSE-100 index, is

expected to serve as an appropriate Index for the new segment of

futures and options.“Nifty” means National Index for Fifty

Stocks.The NSE-50 comprises 50 companies that represent 20 board

Industry groups with an aggregate market capitalization of around

Rs. 1,70,000 crores. All companies included in the Index have a

market capitalization in excess of Rs. 500 crores each and should

have traded for 85% of trading days at an impact cost of less than

1.5%.

The base period for the close of prices on Nov 3, 1995, which makes

one year of completion of operation of NSE’s capital market

segment. The base value of the Index has been set at 1000.

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NSE-MIDCAP INDEX

The NSE madcap Index or the Junior Nifty comprises 50 stocks that

represents 21 abroad Industry groups and will provide proper

representation of the madcap segment of the Indian capital Market.

All stocks in the index should have market capitalization of greater

than Rs. 200 crores and should have traded 85% of the trading days

at an impact cost of less 2.5 %.

The base period for the index is Nov 4, 1996, which signifies two

years for completion of operations of the capital market segment of

the operations. The base value of the Index has been set at 1000.

Average daily turn over of the present scenario 258212 (Laces) and

number of averages daily trades 2160 (Laces).

At present, there are 24 stock exchanges recognized under

the securities contact (regulation) Act, 1956.

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INTRODUCTION

Indiabulls is India's leading retail financial services company with

135 locations spread across 95 cities. While its size and strong

balance sheet allow them to provide you with varied products and

services at very attractive prices, over 750 Client Relationship

Managers are dedicated to serving your unique needs.

Indiabulls is lead by a highly regarded management team that has

invested cores of rupees into a world class Infrastructure that

provides there clients with real-time service & 24/7 access to all

information and products. Their flagship Indiabulls Professional

Network TM offers real-time prices, detailed data and news,

intelligent analytics, and electronic trading capabilities, right at your

finger-tips. This powerful technology is complemented by there

knowledgeable and customer focused Relationship Managers.

We are Creating a World of Smart Investor

Indiabulls offers a full range of financial services and products

ranging from Equities to Insurance to enhance your wealth and

hence, achieve your financial goals.

Indiabulls' Client Relationship Managers are available to you to help

with your financial planning and investment needs. To provide the

highest possible quality of service, Indiabulls provides full access to

all our products and services through multi-channels

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THE INDIABULLS PHILOSOPHY – YOU COME FIRST

We have created a unique organization that is designed for you –

the Smart Investor –. We passionately believe in the Smart

Investor who wants to make his own educated investment choices

and demands world class access to a full range of services and

products ranging from Equities to Insurance, combined with the

highest level of integrity, service and professionalism.

Indiabulls is a full service investment firm offering clients access to

a tremendous range of financial services from 135 locations across

95 cities. We have a strong team of over 750 Client Relationship

Managers focussed on serving your unique needs. Our world class

infrastructure, built with tens of crores of investment, provides our

clients with real-time service, multi-channel & 24/7 access to all

information and products. As we've expanded and developed to

serve the needs of all kinds of investors, we've been guided by one

underlying philosophy: You come first.

We are proud to introduce to you Indiabulls Professional

NetworkTM that offers real-time prices, equity analysis, detailed

data and news, intelligent analytics, and electronic trading

capabilities, right at your finger-tips. This powerful technology is

complemented by our knowledgeable and customer focussed

Relationship Managers who are available to help with your financial

planning and investment needs.

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We invite you to learn more about Indiabulls by calling 1 600 11

1130 (toll free) or visit our 135 Indiabulls Offices Nationwide or

explore the services we offer through the Indiabulls Market Trader.TM

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HISTORY AND OTHER CORPORATE MATTERS OVERVIEW

Indiabulls Financial Services Limited was incorporated on January

10, 2000 as M/s Orbits InfoTech Private Limited at New Delhi under

the Companies Act, 1956 with Registration No. 55 – 103183. The

name of the Company was changed to M/s. Indiabulls Financial

Services Private Limited on March 16, 2001 due to change in the

main objects of the Company from Infotech business to Investment

& Financial Services business. It became a Public Limited Company

on February 27, 2004 and the name of Company was changed to

M/s. Indiabulls Financial Services Limited. Company was promoted

by three engineers from IIT Delhi, and has attracted more than

Rs.700 million as investments from venture capital, private equity

and institutional investors such as LNM India Internet Ventures Ltd.,

Transatlantic Corporation Ltd., Farallon Capital Partners, L.P., R R

Capital Partners L.P., and Infinity Technology Trustee Pvt. Ltd. and

has developed significant relationships with large commercial banks

such as Citibank, HDFC Bank, Union Bank, ICICI Bank, ABN Ambro

Bank, Standard Chartered Bank, Lord Krishna Bank and IL&FS.

Company and there subsidiaries have facilities from the above

mentioned banks and financial institutions aggregating to Rs. 1760

million. Companies headquarters are co-located in Mumbai and

Delhi, allowing it to access the two most important regions for

Indian financial markets, the Western region including Mumbai, rest

of Maharashtra and Gujarat; and the Northern region, including the

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National Capital Territory of Delhi, nearby cities, parts of Haryana,

Uttar Pradesh and Punjab; and access the highly skilled and

educated workforce in these cities. The Marketing and Sales efforts

are headquartered out of Mumbai; with a regional headquarter in

Delhi; and its back office, risk management, internal finances etc.

are headquartered out of Delhi, allowing our Company to scale

these processes efficiently for the nationwide network.

Main Objects Of The Company

The main objects to be pursued by the Company on its

incorporation are:

1. To hold investments in various step-down subsidiaries for

investing, acquiring, holding, purchasing or procuring equity

shares, debentures, bonds, mortgages, obligations, securities

of any kind issued or guaranteed by our Company.

2. To provide financial consultancy services; to provide investment

advisory services on the internet or otherwise; provide financial

consultancy in the area of personal and corporate finance;

publish books and CD ROMs and any other information related to

the above.

3. To conduct the business of sale, purchases, distribution and

transfer of shares, debts, instruments and hybrid financial

instruments and to perform all related, incidental, ancillary and

allied services.

4. To conduct depository participant services; to conduct de-

materialization and re-materialization of shares; set up

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depository participant centers at various regions in India and to

perform all related, incidental, ancillary and allied services.

5. To receive funds, deposits and investments from the public,

Government agencies, financial institutions and Corporate

bodies; grant advances and loans; conduct advisory services

related to banking activities, project financing, funding of

mergers and acquisition activities; fund management and

activities related to money market operations.

6. To carry on the business of portfolio management services,

investment advisory services; custodial services; asset

management services; leasing and hire purchase; mutual fund

services and to act as brokers of real estate and financial

instruments.

7. To carry on the business of financing; provide lease and hire

purchase services; to provide consultancy in the area of lease

and hire purchase financing.

8. To operate mutual funds; receive funds from investors; equity or

debt instrument research activity instrument in debt and/or

equity instruments.

Credit Rating

Indiabulls Securities Limited has been granted ‘PR1+’ rating for

its unsecured short term borrowing program of Rs. 200 million. Vide

letter dated May 5, 2004 the rating agency has increased the

unsecured short term borrowing limit to Rs. 320 million maintaining

the ‘PR1+’ rating. ISL also enjoys ‘A+’ rating for medium to long

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term unsecured borrowing program of Rs. 200 million. The Rating to

the company has been assigned by Credit Analysis Research

Limited. As for the present issue of equity shares of our Company,

credit rating is not required.

Shareholders Agreement

Shareholders Agreement was entered into by and among our

Company (formerly Orbis Infotech Private Limited), Infinity

Technology Trustee Private Limited as the trustee of Infinity Venture

India Fund, LNM India Internet Ventures Limited, Transatlantic

Corporation Limited (together the “VC Investors”) and the Promoters

dated November 2, 2000. The VC Investors invested an aggregate

amount of Rs. 206,000,000 in our Company for which they were

issued 55,425 equity shares at an average price of Rs. 3,716.73 per

equity share. Pursuant to a letter agreement (the “Letter

Agreement”) dated May 27, 2004 between the parties to the

Shareholders Agreement, each of the VC Investors have agreed not

to enforce rights that have accrued to them before the said Letter

Agreements and have agreed that the Shareholders Agreement,

together with all the rights and obligation on the parties will stand

terminated immediately upon the listing of the shares of our

Company and consequent to the listing, the rights of the

Shareholders Agreement, including the rights that have arisen prior

to such termination shall be terminated. A copy of the Shareholders

Agreement, and a copy of the Letter Agreement terminating the

Shareholders Agreement are available for inspection as material

documents at the corporate offices of our Company.

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Key Competitive Strengths

Diverse Branch Network

Since Company inception in FY 2000 Company and its subsidiaries

have grown from a single location to a nationwide network spread

over 135 offices in 95 cities. They have a pan India distribution

networks for the purpose of distribution of financial products and

services. Such a diverse and integrated network provides a

centralized platform to there clients.

Bouquet of financial products and services

Company and its subsidiaries offer various financial services and

products ranging from equity, F & O and wholesale debt, mutual

fund, insurance and IPO distribution, equity research analysis,

depository services to cater to the specific needs of the retail and

institutional investors thus providing all these services in a single

platform.

Advanced Technology team that delivers market leading

product innovation

There ongoing investment in technology is a key element in

expanding there product and service offerings, enhancing there

delivery systems, providing fast and consistent client service,

reducing processing costs, and facilitating there ability to handle

significant increases in client activity without a corresponding rise in

risk and staff. Company and its subsidiaries have an in-house

technology team of 27 people comprising of several engineers. The

in-house technology team has been responsible for developing the

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technology products for operating at a large scale with efficient

back office systems. The application of technology allows Company

and its subsidiaries to build scaleable product and service offerings.

The in-house technology team developed one of the first Internet

trading platforms in India, one of the first in-house real-time CTCL

link with NSE. Company and its subsidiaries introduced integrated

accounts with automated gateways with client bank accounts so

that they can transfer funds to and from their bank account to their

brokerage account with the Company. This has enhanced customer

ability to access their funds for market related activities. The in-

house technology team has good expertise to create mission critical

applications and in the maintenance and upkeep of high transaction

processing of there web-site.

Strong Sales and Marketing Teams with continuous

reinvestment and training

Company’s relationship manager channel (through a team of 1050

Relationship Managers as on April 30, 2004) offers a single point

contact to retail customers whereby their high net worth clients

have separate relationship managers catering to them. These

managers offer personalized services to the customers helping build

strong and continuing relationships with them. Also, our marketing

associate channel helps Company and its subsidiaries in client

acquisitions at minimal costs with client loyalty. The marketing

associate’s channel also helps Company and its subsidiaries in

increasing their penetration in smaller town and cities.

Strong cross Selling Opportunities

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With 135 branches spread over 95 cities all over India and variety of

financial products and offerings coupled with online, relationship

manager & marketing associate channels, Company and its

subsidiaries have strong cross product selling opportunities thus

providing a multi-channel delivery systems to there diverse client

base of 71,000 clients as on July 10, 2005.

Strong Team of Experienced Promoters

Indiabulls has a strong team of promoters who are engineers from

Indian Institute of Technology and have several years’ experience in

financial services industry. They believe that their strong technical

experience will help them in achieving our key business strategies.

Leading Product innovation and marketing strategies

Management is innovative and nimble and has historically

introduced many new and innovative products to the market place

that have played a significant role in their growth. Company’s

relationship manager model has introduced private banking

experience to the clients. The relationship managers are trained and

incentives to work with their client base and enhance ability to cross

sell and leverage the large client base. Indiabulls have launched

marketing associate model, which replaces the traditional sub-

broker model with an authorized person that client can appoint

independently and provide them with the benefit of their trading,

clearing and servicing strengths. Its equity analysis product provides

clients with unbiased research. Company plans to continuously

innovate and introduce market leading products and services to add

to its competitive advantage.

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Well capitalized player, with strong banking relationships

and credit ratings

Indiabulls consolidated net worth is Rs. 1023.19 million making us a

well capitalized companies. The Company and ISL have received

sanctioned facilities of Rs. 1760 million from 9 leading commercial

banks and financial institutions. The details of the banking

relationships as of July 24, 2004 are as follows:

Ability to combine People & Technology in unique ways

They provide multiple distribution channels by combining people

and technology. Clients can visit one of the 70 offices in 55 cities or

access via telephone, call centre or online channel. Web enabled

tools such as technical analysis, information, news, interactive web

based programs and tools and back office solutions for clients and

marketing associates; Power Indiabulls an order entry, routing and

management technology through technology platform, for actively-

trading investors.

Strong market presence and increased market share leads

to virtuous cycle of growth and profitability

They’re growing client base and market share have increased their

market presence, brand recognition enhanced their profitability and

increased the available credit facilities from the banks further

strengthening its strong balance sheet. Company’s brand and

profitability allows them to recruit good and efficient employees,

compensate them attractively and provides the flexibility toes for

investments in the business and technology systems. These

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attributes in turn have a positive effect on the growth of its client

base thereby increasing its market share, leading to higher profits

and credit facilities and thus forming a virtuous circle.

Key Business Strategies

Their focus on the client has allowed Company and its subsidiaries

to offer a range of services that have changed the investing

landscape and created a new model of financial services that melds

people and technology to provide an integrated human assisted

technology interface service for investors who range from self-

directed full-time active investor to those who prefer to deal with

through a marketing associate in smaller towns and cities. Their key

strategies include:

Defend and maintain their differentiation as the firm that delivers

ethical and useful services

Build and expand “investing insight” through product offerings

such as Equity Analysis which is objective,

Uncomplicated and not driven by commission

Give clients new levels of choice tailored to their desire for help,

tools for investing their assets, their willingness to pay for

additional services and the level of business they can do with the

company.

Provide clients with tools, relationship managers and choices that

support their desired investment outcomes. Indiabulls has

developed a client specific approach as a core element of its

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business strategy and are constantly focusing on acquiring new

clients and expanding their customer base. They believe that the

strong secular growth of the Indian financial Markets, due to

increased household penetration of financial assets; increasing

liquidity and market capitalization of Indian Markets, led by the

listing of many public sector entities; and the increasing

affluence of Indian households and savers provides an impetus to

the growth perspective.

They believe that this diversification and growth strategy will

continue to produce results and allow Company and its subsidiaries

to grow business at a rapid pace irrespective of market conditions.

In addition, management believes that the growth of the Indian

financial markets, due to increased household penetration of

financial assets; increasing liquidity and market capitalization of

Indian markets, led by the listing of many public sector entities; and

the increasing affluence of Indian households and savers, favors our

long term growth outlook.

The table below encapsulates the financial metrics on an annual

basis, and compares that with the Market trading volume.

(NSE Yearly Trading Volume is taken as representative of Market

activity).

The core pillars of our business strategy are discussed

below:

Increase the number of Client Relationships

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They are focused on increasing the number of client relationships

through a wide network of offices throughout India and having more

number of relationship managers to service these relationships.

They plan to grow their business by growing the number of client

relationships. During a downturn of the markets they believe that

increased number of client relationships will add stability to their

earnings.

Offer Diversified Financial Products & Services – Capture

Greater Share of Wallet

Company and its subsidiaries offer to their clients a wide range of

financial services and products allowing the clients to leverage their

relationship with Indiabulls and get products suiting their varied

needs. This strategy allows them to gain “share of wallet” of the

clients’ consumption of financial services. They offer to the client a

comprehensive product offering and are able to increase their

revenues per client by selling different products to the same client.

Indiabulls offer equity, debt & derivatives brokerage, IPO

distribution, mutual funds and insurance products. Their strategy is

to increase the number of client relationships and then leverage

those client relationships into offering in a whole suite of financial

products.

Multiple Channels – Enhance Customer Experience and

Opportunities to interact with us

Company’s clients can access their products and services through

135 offices spread across 95 cities; through operator assisted call

Centers; or through their website www.indiabulls.com; or through

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their respective relationship managers or through marketing

Associates. These multiple channels provide flexibility to the clients

and allow them to utilize their existing business Relationship with

them through any channel from any part of India. Company’s

strategy is to provide the most convenient, efficient and value

added channel to the client at the lowest possible cost, and allow

the clients with choice and varied access points. Indiabulls believe

that their multiple channel strategy has been particularly effective

in the affluent segment where many sophisticated clients like to

have a close-by office they can access and yet have the flexibility of

Internet account management, transactions and electronic funds

transfer and settlement.

Relationship Manager driven sales model, provide high

quality service and exploit cross-sell opportunities

Company’s clients benefit from the personal attention and advice of

the trained and motivated relationship managers. All its relationship

managers are qualified and educated professionals, who have been

extensively trained in-house to provide the products and services to

the clients. These relationship managers are encouraged to develop

long-term relationships with the clients and can access a variety of

resources within the Company, such as insurance specialists,

research services and others to add value to their clients. Most of

the clients have dedicated relationship managers irrespective of the

channel they use.

Low cost and highly scalable business

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Indiabulls has utilized the technologies available and have

constantly invested in products and innovations to provide an

enhanced experience to its customers. The benefits of such

infrastructure include integrated customer trading account with

depositary services; electronic gateway for instant funds transfer to

and from the bank to the brokerage account; and comprehensive

client systems that track all activity in various segments. They

believe that technology and systems are one of the key competitive

edges in terms of lowering their operating costs; managing the

business; reducing risk and providing an enhanced experience to

the clients with superior service standards.

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Brokerage Offering

Company’s retail equity business primarily covers secondary market

equity broking. It caters to the needs of individual Indian and Non-

resident Indian (NRI) investors. They offer broker assisted trade

execution and automated online investing and trading facilities to

their customers. Automated online investing and trading includes

automated order placement and execution of market and limit

equity orders; and advanced trading platforms for active traders. All

investors have full access to real - time quotes, personalized

portfolio tracking, charting and quote applications, real-time market

commentary, real-time quotes and news.

Online Automated Channel

Automated Online Business contributes more than 34.6% of its

overall revenues. They control more than 20% market share in the

online business. Clients are able to obtain financial information and

execute trades on an automated basis through their online channel

using product offerings like Power Indiabulls and Indiabulls

Market Trader. This channel is designed to provide added

convenience for clients and minimize its costs of responding to and

processing routine client transactions. Online channels include the

Indiabulls Group Professional Network that provides access via

their web-site www. indiabulls .com to information and trading

service on the Internet. Additionally, Power Indiabulls online

trading system is designed for the high volume trader and provides

enhanced trade information and order execution integrated

software-based trading platforms. While most client transactions are

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completed through the online channel, they continue to stress the

importance of blending the power of the Internet with personal

service to create a full-service client interface. They offer an online

portal where the clients can execute securities purchase and sales

transactions through the Internet.

This covers the Equity, Debt & Derivatives segment in the Indian

securities market. With an objective of assisting our customers in

taking investment decisions, the portal also provides financial

information on various companies listed. For executing a transaction

clients can directly log on to our website without requiring any

assistance from offline intermediaries

Third Party Financial Products Offering

They distribute third party products and services through our

comprehensive retail distribution network. The products offered

include third party insurance, mutual funds and initial and

secondary public offerings. They have a pan India retail distribution

network, comprising 1050 relationship managers and 135 branches

spread over 95 cities.

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INTRODUCTION AND CONCEPT OF SHARE TRADING

Trading in shares is old phenomena its regulation had been started

when securities contract act had been formed in 1956. Transfer of

resources from those with idle resources to others who have a

productive need for them is most efficiently achieved through the

securities market. It provides a channel for reallocation of savings

to investments.

SECURITIES AND EXCHANGE BOARD OF INDIA (SEBI) is a

regulatory governing body of security market. The SEBI Act 1992

was enacted to empower SEBI with statutory powers for:

(a)Protecting the interests of investors in securities.

(b)Promoting the development of the securities market

(c) Regulating the securities market

Its regulatory jurisdiction extends over corporate in the issuance of

capital and transfer of securities. It has powers to register and

regulate all the market all market intermediaries and also to

penalize them in case of violations of the provisions of the ACT,

rules and regulations made there under. SEBI has a full autonomy

and authority to regulate and develop an orderly securities market.

The share market can be segmented in two parts one is Primary

Market another is Secondary Market.

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Primary Market

It provides opportunity to issuers of securities government as well

as corporate to raise resources to meet their requirements of

investments. In this market companies issue fresh security sin

exchange of funds through public issues or private placements. The

market design for primary market is provided in the provision of

Companies Act, 1956 which deals with issues, listing and allotment

of securities. The investors have to apply the shares by filling the

application form issue by the company along with the application

money. According to Disclosure and Investor Protection guidelines

of SEBI, 1992 company has to disclose all the necessary information

regarding pricing of issues, listing requirements, disclosure norms

lock-in-period for promoters contribution, contents of offer

documents pre and post issue obligations etc.

Company can issue shares at face value, at premium or at discount.

Another method of pricing which is now days common is issuing the

securities through online system of the stock exchange has to

comply with the section 55 to 68a of the companies Act, 1956 and

SEBI guidelines 2000. The company is required to enter in to an

agreement with the stock exchanges which have the requisite

system for online offer of securities. The advantages for this new

system are:-

(a)The investors part with money only after allotment.

(b)It eliminates refunds except in case of direct applications.

(c) It reduces the time taken for issue process

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Secondary Market

Secondary market is the place for sale and purchase of existing

securities. It enables an investor to adjust his holdings of securities

in response to changes in his assessment about risk and return. It

enables him to sell securities for cash to meet his liquidity needs. It

essentially comprises of the stock exchanges which provide

platform for trading of securities and a host of intermediaries who

assist in trading of securities and clearing and settlement of trades.

The securities are traded, cleared and settled as per prescribed

regulatory framework under the supervision of the exchanges and

oversight of SEBI.

Trading Mechanism

Earlier trading on stock exchanges in India used to take place

through open outcry without use of information technology for

immediate matching or recording of trades. This was time

consuming and inefficient. This imposed limits on trading volumes

and efficiency. In order to provide efficiency, liquidity and

transparency National Stock Exchange introduced a nation wide on

line fully automated screen based trading system where a member

can punch in to the computer quantities of securities and the prices

at which he likes to transact and the transaction is executed as soon

as it finds a matching sale or buy order from a counter party. Screen

based trading electronically matches orders on a price/time priority

and hence cuts down on time, cost and risk of error, as well as on

fraud resulting in improved operational efficiency. It enables market

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participants, irrespective of their geographical locations to trade

with one another and it provides equal access to everybody.

NSE has main computer which is connected through Very Small

Aperture Terminal (VSAT) installed at its office. The main computer

runs on a default tolerant STRATUS mainframe computer at the

exchange. Brokers have terminals installed at their premises which

are connected through VSATs. An investor informs a broker to place

an order on his behalf.

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ORGANISATIONL CHART

CHAIRMAN & CEO

Sameer GehlantCEO

Rajeev RattanPresident & CEO

Surabh MitalCEO

Gagan BangaHead online sales

Oivyesh ShahHead online sales

T.S. MuglaniChief Tech

officer

Suresh JainV.P

Pheeta NagpalHead- HR

Ashok SharmaFinance

Controller

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ACCOUNTS AND FEATURES

Through various types of brokerage accounts, they offer purchase

and sale of securities, which includes Equity, Derivatives and

Commodities listed on NSE, BSE and NCDEX. Additionally, they

provide their clients access to a variety of insurance products like

life, term and annuity products through third-party insurance

companies like Birla Sunlife Insurance Company. Indiabulls Group

Signature Client is designed to serve self-directed individual

investors who want to manage their own portfolios. For these

clients, they offer this account, which is a stock trading account that

allows clients to combine investments and cash in one-account and

trade securities. Clients are also eligible to subscribe to Indiabulls

Equity Analysis, a fee based research offering. Other features of

Indiabulls Group Signature Account include priority handling of

their service calls at the Centralized Customer Service Centre and

through dedicated relationship managers. Indiabulls Group

Signature account features include online integrated net transfers

via integrated payment gateways with banks such as HDFC Bank.

Power Indiabulls - For active traders, They offer Power Indiabulls

accounts that include access to special features and services such

as advanced trading tool dedicated team of relationship managers.

Indiabulls offers a full range of financial services and products

ranging from Equities to Insurance to enhance your wealth and

hence achieve your financial goals.

Indiabulls Professional NetworkTM offers real-time prices,

detailed data and news, intelligent analytics, and electronic trading

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capabilities, right at your finger-tips. This powerful technology is

complemented by our knowledgeable and customer focused

Relationship Managers.

Indiabulls' Relationship Managers are available to you to help with

your financial planning and investment needs. To provide the

highest possible quality of service, Indiabulls provides full access to

all products and services through multi-channels.

Equities and Derivatives

Our Retail Equity Business caters to the needs of individual Indian

and Non-Resident Indian (NRI) investors. Indiabulls offers broker

assisted trade execution, automated online investing and access to

all IPO's.

Through various types of brokerage accounts, Indiabulls offers the

purchase and sale of securities which includes Equity, Derivatives

and Commodities Instruments listed on National Stock Exchange of

India Ltd (NSEIL), The Stock Exchange, Mumbai (BSE) and NCDEX.

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THE FACILITIES PROVIDED BY INDIABULLS

Indiabulls Signature Account

A multitude of ways to access your account either through priority

access to Relationship Manager over phone or online access to your

Account & Research Tools.

Indiabulls Signature Account Features

Priority Service — Enjoy priority telephone access that gives you

direct access to your Relationship Manager.

Premium Research — Benefit from full access to Indiabulls Equity

AnalysisTM, our objective, fact-based approach to rating stocks.

Online Accounting — Stay on the top of your investments with a

snapshot of your Account Statements. Get access to Portfolio

statement and access to digital contract notes.

Benefits

Control — Stay on top of your investments with convenient access

to your account online or by phone.

Confidence — Support your investing decisions with premium in-

depth research - Indiabulls Equity Analysis.TM

Value — Enjoy competitive commissions and get the service and

support you need at a fair price.

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Power Indiabulls

Indiabulls is dedicated to empower Active Traders through personal

service and advanced trading technology.

Active Trader - Get More At Indiabulls

Regardless of how the market is performing or which way the

economic winds are blowing, you, as a trader, are researching,

charting, crafting a strategy, buying and selling. You are getting in,

getting out and moving on to the next trade.

Choose from a comprehensive offering of accounts, platforms and

products. Customize our technology and services to support the way

you work.

Features of Power IndiabullsTM

Live Streaming Quotes

Fast Order Entry

Tic by Tic Live Charts

Technical Analysis

Live News and Alerts

Extensive Reports for Real-time Accounting

Benefits

Comprehensive Financial Services — As an Active trader, you'll

have the tools, resources and support you need to execute your

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trading strategy, plus your choice of a wide range of investment

products and services.

Dedicated Support and Services — Enjoy priority access to

Relationship Managers who are dedicated to supporting your trading

and investing needs.

Non-Resident Indian (NRI) Investor Services

With an extensive range of investment products, you will discover

an unwavering commitment to helping you invest in India.

Facilities

Indiabulls NRI Trading Account - Provides access to

comprehensive trading tools for independent NRI investors

Indiabulls Depository Services - Integrated services for seamless

delivery

HDFC Bank Account - NRE/NRO Accounts with built in tax

management solutions and facility to source all regulatory

approvals.

Indiabulls Equity AnalysisTM - Premium Research on 200

companies updated daily.

Benefits

Indian Investments Brings You More Choices

Investing in India, one of the world's fastest emerging financial

markets, means a wider choice of investment opportunities and

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industries. At Indiabulls, you can take full advantage of the

emerging Indian market.

See what indiabulls offer

Indiabulls provide you with a Seamlessly integrated trading,

depository and bank account enabling you to trade from anywhere

in the world.

Investing in India, one of the world's fastest emerging financial

markets, means a wider choice of investment opportunities and

industries. At Indiabulls, you can take full advantage of the

emerging Indian market.

Indiabulls provide you with a Seamlessly integrated trading,

depository and bank account enabling you to trade from anywhere

in the world.

Depository Services

Indiabulls is a depository participant with the National Securities

Depository Limited and Central Depository Services (India) Limited

for trading and settlement of dematerialized shares. Indiabulls

performs clearing services for all securities transactions through its

accounts. They offer depository services to create a seamless

transaction platform –execute trades through Indiabulls Securities

and settle these transactions through the Indiabulls Depository

Services. Indiabulls Depository Services is part of value added

services for their clients that create multiple interfaces with the

client and provide for a solution that takes care of all your needs.

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ISL is a depository participant with the NSDL and CDSL for trading

and settlement of dematerialized shares. It performs clearing

services for all securities transactions through its accounts. Clients

of the brokerage business are able to use the depositary services to

execute their trade through ISL and settle these transactions

through our depositary services. Indiabulls depositary service is part

of the value-added offerings to create multiple interfaces with the

client.

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INSURANCE OVERVIEW

When you hear the word Insurance, the words boring and mundane

probably enter your mind.

Insurance Products

IIAPL is a Corporate Agent of Birla Sunlife Insurance Co., which is

India’s second largest private insurance company. It offers life

insurance and annuity products. The insurance experts assist

relationship managers in evaluating the near term and long term

financial needs of clients and design programs that they believe

would best suit their needs and help them manage their risks.

Insurance experts also co-ordinate with underwriting partners to

complete the insurance transaction. IIAPL has a network of 77

insurance experts spread across its branch network. IIAPL has been

awarded the “Flying Start” award by Birla Sunlife Insurance Co. for

outstanding contribution towards growth and success of the

partnership.

When it comes to business, you are right up there. Taking all those

split second decisions, avoiding pitfalls and making sure your money

works hard for you. But don't you think the business of life requires

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just as much attention and probably even more. That's we are proud

to bring to you an offer exclusively for you. As a part of our

endeavor to provide you with world-class products and services,

Indiabulls gives you the opportunity to avail of the whole range of

Birla Sunlife Insurance Products through the Indiabulls network of

1050 Relationship Managers over 135 locations nationwide. Which

means you can take care of life, while taking care of business. As

always, we put your needs first.

Products: Individual Life

Live Long Retirement Plan

Flexi Save Plus Endowment Plan

Flexi Cash Flow Money Back Plan

Flexi Life Line Plan

Flexi Secure Life Retirement Plan

Premium Back Term plan

My Child

Riders

Birla Sun Life Term Plan

Single Premium Bond

Classic Life

Critical Illness Plus Rider

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Critical Illness-Women Rider

Products : Group Life

Group Term Insurance

Group Superannuation Plan

Group Gratuity Plan

Forms

FAQ : Group Protection Solution Plan

FAQ : Group Superannuation Plan

FAQ : Group Gratuity Plan

Bima Kavach Yojana

Indiabulls Equity Analysis

They seek to provide their clients with customized research reports

called Indiabulls Equity Analysis. It provides clients with an

objective stock rating system on more than 200 stocks, assigning

each equity a single grade: A, B, C, D, or E. On average, A-rated

stocks are expected to strongly outperform the overall market over

the next 12 months, while E-rated stocks are expected to strongly

underperforms the market. Indiabulls Equity Analysis leverages

their strong technology strengths to a systematic ratings

methodology.

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Objective guidance to help you buy or sell

Building and maintaining your ideal portfolio demands objective,

dependable information. Indiabulls Equity AnalysisTM helps satisfy

that need by rating stocks based on carefully selected, fact-based

measures. And because we're not focused on investment banking,

we don't have the same conflicts of interest as traditional brokerage

firms. This objectivity is only one important difference in our ratings.

A scale of A, B, C, D and E

A to E ratings are applied to over 401 Indian headquartered stocks

using a wide variety of investment criteria from four broad

categories.

Rating is Understandable and Actionable

Over the next 12 months, A-rated stocks have a return outlook of

strongly outperforming the market while E-rated stocks have a

return outlook of strongly underperforming the market. Find out

more about using Indiabulls Equity AnalysisTM

The Indiabulls Equity AnalysisTM model attempts to gauge investor

expectations, since stock prices tend to move in the same direction

as changes in investor expectations.

Stocks with low and potentially improving investor

expectations tend to receive A or B ratings.

Stocks with high and potentially falling investor expectations

tend to receive D or E ratings.

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Special Considerations

Indiabulls Equity AnalysisTM also do not reflect the possible impact

of late-breaking news since the ratings are updated daily. Thus, it is

important to conduct additional research prior to making a trading

decision Indiabulls' systematic approach is dependent on the

accuracy of financial data provided by third parties. Indiabulls Equity

AnalysisTM may not capture more subjective, qualitative influences

on return and risk, such as management changes and pending

lawsuits.

Parameters used by Indiabulls to give grades to the

individual stock

Indiabulls Equity AnalysisTM' four underlying components

(Fundamentals, Valuation, Momentum and Risk) are provided to

give you further insight into why a stock has a particular Indiabulls

Equity Rating. The component grades should not be used alone in

making investment decisions. Always consider your investment

goals, portfolio diversification and tax situation and check recent

news before making an investment decision on an individual stock.

Fundamentals

The Fundamentals grade underlying the Indiabulls Equity

AnalysisTM is based upon several earnings-quality measures derived

from recent financial statement data. Stocks with strong

fundamental attributes such as a track record of high net profit

margin and return on equity tend to have better Fundamentals

grades.

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Valuation

The Valuation grade underlying the Indiabulls Equity AnalysisTM is

based upon several value-oriented investment criteria. Companies

that are commanding a higher valuation in the market currently as

compared to others having similar earnings and other parameters

shall get a lower rating than others. The aim of this component is to

judge the attractiveness of a particular stock. Typically stocks with

lower PE ratio and other valuation related parameters would get

higher valuation grades.

Momentum

The Momentum grade underlying the Indiabulls Equity AnalysisTM

measures the potential of the stock to keep performing at a stronger

than market level in the near future. IndiaBulls uses the opinions

collected from a panel of analysts to get to a momentum rating for a

company.

Risk

The Risk grade underlying the Indiabulls Equity AnalysisTM is based

upon several diverse measures of investment risk. Larger stocks

with good risk related attributes (such as low stock price volatility,

low debt-equity ratio, high stock liquidity etc.) tend to have better

risk grades.

Mutual Funds

They provide various mutual funds (equity, debt and balanced

mutual funds) through our retail distribution network. They offer

clients a wide variety of mutual funds from Asset Management

Companies like Prudential ICICI Mutual Fund, HDFC Mutual Fund etc.

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Indiabulls Easy Money

No questions. Only Loans.

No matter where you work, or how much you earn, we offer you the

shortest route to a loan with minimum paperwork and procedures.

With EasymoneyTM, you can avail of easy loans for a minimum of

Rs.10, 000 to a maximum amount of Rs.1, 00,000.

With absolutely No Prepayment Penalty.

Easymoney Team features

Flexible loan tenor of up to 4 years (i.e. 1 month to 48 months).

Loans available from a minimum of Rs.10,000 up to a maximum of

Rs.100,000.

Easy monthly repayment through equated monthly installments

(EMI).

Mediclaim Insurance bundled with every loan you avail.

Easy documentation and quick disbursal.

You take today and you can pay it tomorrow with no penalties

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INDIABULLS-IN NEWS 2005

Farallon pays Rs 88cr for 33% stake in Indiabulls arm [The

Times Of India ( Jan 3, 2005 )

Merrill Lynch acquires 2% in Indiabulls   [Economic Times -

India ( June 29, 2005 ) ]

Amaranth to pick up 42.5% stake in Indiabulls [Economic

Times - India ( June 08, 2005 ) ]

US Fund Amaranth LLC Acquires 42.5 Percent Stake In

Indiabulls IPO ...   [Business Wire -San Francisco, CA, USA ( June

07, 2005 ) ]

Toddler takes giant steps [Business India ( Feb 28-Mar 13, 2005 )

]

Indiabulls raises $60m via GDR issue   [ Sify ( Feb 25, 2005 ) ]

Indiabulls GDR priced at Rs 107 per share   [Moneycontrol.com

(Feb 25, 2005)]

Indiabulls prices $45mn GDR issue   [Business Standard (Feb 25,

2005 ) ]

Indiabulls raises $60 mln via GDR issue - BSE  [Reuters India

(Feb 25, 2005)]

Indiabulls Financial prices GDR issue at US $45 million  

[Myiris.com (Feb 25, 2005)]

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Indiabulls GDR priced at Rs 107/share   [Economic Times (Feb

25, 2005)]

Indiabulls' net grows 173% in Q3   [Economic Times (Jan 13,

2005)]

Indiabulls for FII stake in Credit Services   [Moneycontrol.com

(Jan 13, 2005)]

Indiabulls third-quarter net jumps, income rises too  

[Hindustan Times (Jan 13, 2005)]

Indiabulls Q3 net soars 175% to Rs 18.4cr - New Delhi,India   

[Moneycontrol.com (Jan 13, 2005)]

Indiabulls Q3 profits soar 173% to Rs. 18.4 crores   [Sify (Jan

13, 2005)]

Indiabulls plans to hike FII limit to 100%, EGM postponed:   

[New Kerala (Jan 13, 2005)]

Farallon buys 33% in Indiabulls arm    [The Economic Times (Jan

3, 2005)]

Farallon buys 33% in Indiabulls Credit    [Business Standard

(Jan 3, 2005)]

RESEARCH METHODOLOGY

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The methodology section is the blue print for researcher activity and

specifies bow the investigator intents to study the people or

describe social settings. In other words the methodology section

make explicit the study desire and constitutes the “how to do it”

phase.

The project study has been conducted by collecting primary data

only using structured questionnaire. No secondary data is used.

I have put my best possible effort to do this research and collect the

necessary information to learn about this topic thoroughly.

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OBJECTIVES OF THE RESEARCH

To study investor’s behavior towards different attributes such as

risk, return liquidity etc. of investment in Equities.

To study the issues and challenges that investors face while

making investment in share market.

To study the preferences and perceptions of investors regarding

various financial products from the stable of Indiabulls Securities

Ltd. so that the firm can benefit from the findings of the report in

launching any new investment product in future.

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DATA COLLECTION

The data collected was a primary in nature no secondary data was

used. Primary data was collected using structured questionnaire.

The questionnaire has been designed for the target group to get the

best amount of data possible keeping in view the importance and

authenticity of the information and convenience of the respondent.

The selection of investor was predetermined in nature Personal

contacts were established to conduct a face-to-face interview.

Interview was conducted under strict supervision to maintain the

standards of the data collected.

Research Design

Research Idea

Research Question

Research Statement

Research Methodology

Data Collection and Surveying

Data Analysis

Findings and Recommendations

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Research design

Research design is a specification of methods and procedures for

acquiring the information we need to solve the problems. Research

design was adopted for the purpose of collection and analysis of

data in a manner aimed at getting relevant information. It was

conceptual structure within which research was conducted,

collected, measured and analyzed.

Research Idea

To know the market scene of trading and Investment in equities

through Indiabulls securities Ltd.

Research Question

What is the market trend regarding investment? What difficulties

and challenges investors are facing while making investments?

Research Statement

“To get an insight into the mind of investors regarding trading and

investment in Equities”

“To get an insight into the mindset of investors regarding the

importance assigned to different attributes such as risk, return,

liquidity etc. of various investment channels such as equities. In the

report this tries to understand the investor’s behavior while

trading.”

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“To study the preferences and perceptions of investors regarding

various financial products from the stable of Indiabulls Securities

Ltd. so that the firm can benefit from the findings of the report in

launching any new investment product in future.”

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RESEARCH METHODOLOGY

Defining the populations: The population taken for the research

consists of investors of only Delhi region (both retail and

institutional)

Defining the Sample: A random sample has been taken for the

purpose of extensive market survey. A structured questionnaire has

been prepared and the results are analyzed for precise findings.

Size & Type of Sample: A random sample of size 100 is taken for

surveying.

Method to be used: A frequency count has been done for different

parameters/ question and the most important factors have

suggested to the company for betterment of sales operations.

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LIMITATIONS OF THE STUDY

To study share market is a very vast topic and the search is just

limited to a small portion.

Due to the reluctant nature of the respondents it was not an easy

task to collect relevant information from them.

Sometime it was difficult to make the respondents understand

the purpose of the survey.

Busy schedule of the respondents was also a major hindrance to

establish a contact with them.

It may be possible the information provided by them is not true.

SURVEY QUESTIONNAIRE

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Name :

Address :

Phone no :

1. Where do you prefer to invest your money?

a) Bank Deposits

b) Shares

c) Mutual Funds d) Real

estate

e) Insurance Plans

2. What are the factors, which attracts you for the investment?

a) High Return b) Moderate Return

c) Low Risk d) Moderate Risk

3. Do you prefer to invest in shares?

a) Yes

b) No

4. If yes, out of following, which intermediating company would you

go For?

a) Kotak Securities b) Indiabulls

Securities

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c) ICICI d) Fortis

Securities

d) Others, please specify

5. If Indiabulls, What are the factors, which attract you to deal with

Indiabulls?

6. If Others, What are the factors, which attract you, please specify?

7. What attracts you to invest in Shares?

a) Brokerage b)

Expertise Knowledge

c) Exposures/loan d) Brand

8. On what basis do you prefer to trade in shares?

a) Daily b) Monthly

c) Yearly d) other, please

specify

9. Does the companies profile matter for the investment decisions?

a) Yes b)

No

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10. Do you require the opinion of portfolio managers to manage

your investment?

a) Yes b) No

11. What is the most important service parameter that you look for

while trading.

a) Information b) Speed

c) Quality d) Other

12. Any recommendation / Suggestion

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ANALYSIS OF THE PREFERRED INVESTMENT AREA

The investment was broadly divided into five areas, mainly-Bank

deposits. Shares, Mutual Fund ,Real Estate and insurance plans.

Following observations can be made on the basis of above

analysis:

Bank Deposits being the most preferred area, 43% respondents

out of hundred invested in bank deposits.

The second preferred area was Shares as 27% respondents were

investing in the share market.

Then preferred area was the Mutual Funds with 13% of

respondents

Real estates were the least preferred area i.e. only 7%

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ANALYSIS OF THE FACTORS AFFECTING THE

INVESTMENT

The factors are categorized in to four parameters to know the

purpose of investment made by the investor.

52% respondents go invests for higher returns.

29% respondents prefer Moderate Return for their

investments.

15% prefer moderate risk.

Only 4% for Low risk.

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ANALYSIS FOR INTERMEDIATING COMPANY

These factors are categorized into brokerage, Information provided

by them the exposure limit or loan facility provided by them and

their Brand Name.

21% respondents choose Kotak Securities Ltd.

38% respondents choose Indiabulls Securities Ltd. for trading.

7% respondents choose ICICI direct.

4% respondents choose Fortis.

30% go for others.

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ANALYSIS OF THE FACTORS FOR BROKING HOUSE

These factors are categorized into brokerage, Information provided

by them the exposure limit or loan facility provided by them and

their Brand Name.

44% respondents choose their broking house on basis of

information provided by them.

28% prefer by the exposure limit and the loan facility provided to

them.

12% by the brokerage charge by the broking house.

16% by Brand Name.

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ANALYSIS OF THE INFLUENCE OF THE PAST PROFILE

OF A COMPANY

58% respondents say yes they study profile of the company

before making investment.

42% respondents say no.

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ANALYSIS OF THE REQUIREMENT OF EXPERTISE

93% respondents say yes, they required expertise

knowledge.

7% respondents say no.

MOST IMPORTANT SERVICE PARAMETER

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The most important service parameter that came up as a result

of survey is Information i.e. the investors feel that the

information contained in the service package is the key to more

profits.

Second major parameter is Quality of service.

20% investors feel that the quickness of service is above par

than any other aspect.

RECOMMENDATIONS

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INDUCTION PROGRAMS must be held for the sales teams before

letting them go into the field. In these induction classes the

experienced sales staff employees should share their valuable

live experiences and knowledge, which they have experienced

while in field.

Weekly magazines must be published and distributed to the

investors that can help them for making better investments.

Sales team must be fully equipped with latest technology such as

using Laptop that can be used for making presentation to the

customers especially to the corporate clients about their product

and services provided by them.

Make your site user friendly so that more and more people know

about trading and do the same also.

Advertisement through Canopy, help to generate leads.

Company should advertise with a concern that has a brand name

in the market.

BIBLIOGRAPHY

www.indiabulls.com

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www.nseindia.com

www.bseindia.com

www.moneycontrole.com

Economics Times

C.R. Kothari, Marketing Research

NCFM

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Date: 1st July, 2006

TO WHOM IT MAY CONCERN

This is to certify that Mr. Mohammad Kashif Aftab, student of

Master of Business Administration, Institute of Management in

Studies, Ghaziabad has successfully completed his training

from 1st May 2006 – 20th June 2006 with us and the project

report on “STUDY OF OEM & REPLACEMENT TYRE

SEGMENT FOR MARUTI SWIFT” is a original study done by him

under our guidance.

JOSEPH ALEX

(Marketing Manager)