Top Banner
A SUMMER TRAINING REPORT ON “ANALYSIS OF INDIAN STOCK MARKET AND COMPARISON OF CORPORATE STOCK BROKERS” SUBMITTED TO ROYAL INSTITUTE OF MANAGEMENT & TECHNOLOGY, CHIDANA IN PARTIAL FULFILLMENT OF REQUIREMENT OF M.B.A. DEGREE COURSE (2009-11) Submitted by: Deepak Dhingra M.B.A. (3 rd Sem.) Roll No………….. 1 Analysis of Indian Stock Market and Comparison of Corporate Stock Brokers
128
Welcome message from author
This document is posted to help you gain knowledge. Please leave a comment to let me know what you think about it! Share it to your friends and learn new things together.
Transcript
Page 1: Summer Training Report by Deepak Dhingra

A

SUMMER TRAINING REPORTON

“ANALYSIS OF INDIAN STOCK MARKET AND COMPARISON OF CORPORATE STOCK BROKERS”

SUBMITTED TO

ROYAL INSTITUTE OF MANAGEMENT & TECHNOLOGY, CHIDANA

IN PARTIAL FULFILLMENT OF REQUIREMENT OFM.B.A. DEGREE COURSE

(2009-11)

Submitted by:Deepak Dhingra

M.B.A. (3rd Sem.) Roll No………….. R.I.M.T., Chidana

1 Analysis of Indian Stock Market and Comparison of Corporate Stock Brokers

Page 2: Summer Training Report by Deepak Dhingra

DECLARATION

I Deepak Dhingra declare that the project done by me contains the original work and I have not

copied from anywhere, the portion which at some places in the report that has been copied by me I

have declare that in the end of the project report and that portion is the originally belongs to its original

writer and I don’t claim over it. It will be purely used for the academic purpose.

Place: ………….. Signature

2 Analysis of Indian Stock Market and Comparison of Corporate Stock Brokers

Page 3: Summer Training Report by Deepak Dhingra

ACKNOWLEDGEMENT

The beatitude, bliss that accompanies the successful completion of any task would not be complete

with expression of simple virtue to the people who made it possible. So, with the reverence honour we

acknowledge all those guidance and encouragement has made successful in winding up this opus.

I wish to express my deep sense of gratitude to Mr. Sandeep Nagpal (Branch Manager), Anagram

Capital Ltd. for help, guidance and for assisting me with valuable suggestions during the project.

He not only infused in me best skill and guidance in the fields but also invoked in me a spirit to

undertake the project in his prospective and to complete it successfully. The pleasant and fruitful

discussions, which had given me valuable training will help me in my future career.

I would like to thank Mrs. Poonam Luthra, H.O.D. (M.B.A.) and all the lecturers who support and

helps me a lot during the project and by which I am able to complete this project.

Finally I wish to thank all my fellow trainees and my parents for supporting me all the time and my

heartiest thanks to Anagram Capital Ltd. for providing me exposure to the corporate world.

Deepak Dhingra

3 Analysis of Indian Stock Market and Comparison of Corporate Stock Brokers

Page 4: Summer Training Report by Deepak Dhingra

PREFACE

Indian stock exchanges host the most number of listed companies after United States. About 2500

companies are listed in the Bombay Stock Exchange and the National Stock Exchange. Apart from

foreign institutional investors, Indian stock market has some 30 million domestic investors.

The working of stock markets has started in India as early as 1875, when 318 persons coming together

to Native Share and Stock Brokers Association, with Re.1 for membership free.

Closest to BSE is National Stock Exchange, also located at Bombay. Nifty is the market index of NSE.

Indian stock market has seen many ups and downs, but now is flying high, crossing every previous

record and zoom to even further heights. BSE-Sensex crossed the four-figure mark of 1000 in 1990

and had a smooth bull ride till 1992, when the big-full of Indian stock market, Harshad Mehta became

a villain in the in famous Harshad Mehta scam broke out. The sensex lost 570 points in no time and

some eight to 12 million investors were pushed to bankruptcy.

After that incidence, came the Securities and Exchanges Board of India. With the enforcement of

several regulations and strict guidelines, the confidence of investors was somewhat regained. With the

present technology and practices, it is next to impossible to commit a fraud in Indian Stock market. So

claims the SEBI.

Under the watchful eyes of SEBI, Indian Stock markets once again gained momentum. The sensex

crossed reached and crossed 6000 mark in 2000 and crossed the 7000 and 8000 marks in 2005.

Foreign Institutional Investors are pumping in money into the market.

The FIIs are confident of a sustainable momentum. The momentum in the stock market can be

associated with the growth in the fields of export, IT, ITES, telecommunication, education, energy

sector, agriculture etc. The reformist policies being pursued by the government is also a factor for this

growth.

Due to large scale outsourcing by American and European countries, a large number of jobs also went

to India, resulting in more affluent youth who are only happy to spend out their money. This helped in

4 Analysis of Indian Stock Market and Comparison of Corporate Stock Brokers

Page 5: Summer Training Report by Deepak Dhingra

the growth of telecommunication, FMCG and manufacturing sectors. The steady growth of GDP is

also a critical factor in the upward movement of Indian stock market.

Apart from FIIs, the non-resident Indians also invest hugely in the stock market. Diminishing returns

from bank deposits and the facilities of online trading made them turn to stock markets and with the

current bull-run many have made a good fortune from stock markets. The stockbrokers also chip in on

and open offices in foreign countries, aimed at him NRIs there.

The initial public offers by Tata Consultancy Services, Maruti Udyog Limited, ONGC etc. were big

events in Indian stock market. Not only did they put a great show, but also took the stock market to

newer heights. TCS is a big weight in the stock market from the day it was listed. Traditional heavy

weights are Reliance, Tata, and Bharati etc. Now new entrants like Biocon are also play significant

roles in the market.

Growth directed at sky is visible everywhere. The biggest growth opportunity lies in the stock market

itself. The population of India is well above one billion. The number of investors is just above 40

million. That is just 4% of the total population. The measures for a 10% growth are sought.

5 Analysis of Indian Stock Market and Comparison of Corporate Stock Brokers

Page 6: Summer Training Report by Deepak Dhingra

TABLE OF CONTENTS

INDUSTRY STUDY (BSE & NSE)

INTRODUCTION OF ACL

PRODUCT OFFERINGS

INTORDUCTION OF INDIAN STOCK MARKET

MARKET BASICS

COMPARISON OF CORPORATE STOCKBROKERS

RESEARCH METHODOLOGY

ANALYSIS & INTERPRETATION

CONCLUSION

LIMITATIONS

SUGGESTIONS

ANNEXURE

- Questionnaire

- Bibliography

6 Analysis of Indian Stock Market and Comparison of Corporate Stock Brokers

Page 7: Summer Training Report by Deepak Dhingra

7 Analysis of Indian Stock Market and Comparison of Corporate Stock Brokers

Page 8: Summer Training Report by Deepak Dhingra

BOMBAY STOCK EXCHANGE]

Bombay Stock Exchange is the oldest stock exchange in Asia What is now popularly known as the

BSE was established as "The Native Share & Stock Brokers' Association" in 1875. Over the past 135

years, BSE has facilitated the growth of the Indian corporate sector by providing it with an efficient

capital raising platform.

Today, BSE is the world's number 1 exchange in the world in terms of the number of listed companies

(over 4900). It is the world's 5th most active in terms of number of transactions handled through its

electronic trading system. And it is in the top ten of global exchanges in terms of the market

capitalization of its listed companies (as of December 31, 2009). The companies listed on BSE

command a total market capitalization of USD Trillion 1.28 as of Feb, 2010.

BSE is the first exchange in India and the second in the world to obtain an ISO 9001:2000

certifications. It is also the first Exchange in the country and second in the world to receive

Information Security Management System Standard BS 7799-2-2002 certification for its BSE On-Line

trading System (BOLT). Presently, we are ISO 27001:2005 certified, which is a ISO version of BS

7799 for Information Security.

The BSE Index, SENSEX, is India's first and most popular Stock Market benchmark index. Exchange

traded funds (ETF) on SENSEX, are listed on BSE and in Hong Kong. Futures and options on the

index are also traded at BSE.

With its tradition of serving the community, BSE has been undertaking Corporate Social

Responsibility (CSR) initiatives with a focus on Education, Health and Environment. BSE has been

awarded by the World Council of Corporate Governance the Golden Peacock Global CSR Award for

its initiatives in Corporate Social Responsibility (CSR).

Vision

"Emerge as the premier Indian stock exchange by establishing global benchmarks"

8 Analysis of Indian Stock Market and Comparison of Corporate Stock Brokers

Page 9: Summer Training Report by Deepak Dhingra

Base Year- 1978-79

Base Index Value- 100

Date of launch- 1/1/1986

Method of calculation- Launched on full market capitalization method and effective

September 01, 2003, calculation method shifted to free-float market capitalization.

9 Analysis of Indian Stock Market and Comparison of Corporate Stock Brokers

Page 10: Summer Training Report by Deepak Dhingra

NATIONAL STOCK EXCHANGE

The National Stock Exchange of India Limited has genesis in the report of the High Powered Study

Group on Establishment of New Stock Exchanges. It recommended promotion of a National Stock

Exchange by financial institutions (FIs) to provide access to investors from all across the country on

an equal footing. Based on the recommendations, NSE was promoted by leading Financial Institutions

at the behest of the Government of India and was incorporated in November 1992 as a tax-paying

company unlike other stock exchanges in the country.

On its recognition as a stock exchange under the Securities Contracts (Regulation) Act, 1956 in April

1993, NSE commenced operations in the Wholesale Debt Market (WDM) segment in June 1994. The

Capital Market (Equities) segment commenced operations in November 1994 and operations in

Derivatives segment commenced in June 2000.

The following years witnessed rapid development of Indian capital market with introduction of

internet trading, Exchange traded funds (ETF), stock derivatives and the first volatility index -

IndiaVIX in April 2008, by NSE.

August 2008 saw introduction of Currency derivatives in India with the launch of Currency Futures in

USD INR by NSE. Interest Rate Futures was introduced for the first time in India by NSE on 31st

August 2009, exactly after one year of the launch of Currency Futures.

With this, now both the retail and institutional investors can participate in equities, equity derivatives,

currency and interest rate derivatives, giving them wide range of products to take care of their

evolving needs.

10 Analysis of Indian Stock Market and Comparison of Corporate Stock Brokers

Page 11: Summer Training Report by Deepak Dhingra

INTRODUCTION

11 Analysis of Indian Stock Market and Comparison of Corporate Stock Brokers

Page 12: Summer Training Report by Deepak Dhingra

Anagram Capital Ltd. (Anagram) is amongst the leading retail broking houses in India. It is engaged in

offering comprehensive personal finance solutions since 1994. The company is a part of the of the Rs

20 bn Lalbhai Group. The group companies in the capital and commodities market area include

Anagram Capital Ltd and Anagram Comtrade Ltd. Anagram offers a wide range of services for the

discerning equity investor, in addition to online account access and real time trading, Insurance

Services, Wealth Management Services, Mutual Fund and Advisory Services

The firm has its roots in Western India especially Gujarat where it is the biggest player. But it has

expanded considerably.

Anagram is positioned amongst the top retail broking houses in the country. An achievement indeed

for a company that's been providing comprehensive personal finance solutions since 1994. Anagram

Capital Ltd. (Anagram), promoted by Edelweiss Group. Anagram Stock broking Ltd. and Anagram

Comtrade Ltd. are the other group companies in the capital market area.

Anagram is a member of all leading stock and commodities exchange in India –National Stock

Exchange (NSE), Bombay Stock Exchange (BSE), National Commodities Exchange of India Ltd.

(NCDEX) and multi Commodities Exchange Market of India (MCX) and a depository participant with

NSDL. Our current offerings include trading in cash and derivative segment through our branches and

sub-brokers high-speed anywhere trading through the net, Online Depository Services, Commodities

trading, PMS, Currency Future Trading, Distribution of Mutual Funds, IPO’s and other financial

products.

DIVISIONS

12 Analysis of Indian Stock Market and Comparison of Corporate Stock Brokers

Page 13: Summer Training Report by Deepak Dhingra

We have a nationwide presence with 150 plus branches, 1400 plus Sub Brokers & Business

Associates, 3000 plus terminals and a professionalized team of 1400 plus employees spread across 200

plus cities. Our well - qualified staff will always be ready to fulfill your Stock Broking needs or solve

your queries over the telephone, or at the branches themselves.

HIERARCHY

13 Analysis of Indian Stock Market and Comparison of Corporate Stock Brokers

Page 14: Summer Training Report by Deepak Dhingra

14 Analysis of Indian Stock Market and Comparison of Corporate Stock Brokers

Page 15: Summer Training Report by Deepak Dhingra

PRODUCT OFFERINGS

15 Analysis of Indian Stock Market and Comparison of Corporate Stock Brokers

Page 16: Summer Training Report by Deepak Dhingra

Anagram has divided its product & service offering under three broad interface categories: - “Retail

Spectrum”, “Wealth Spectrum” and “Institutional Spectrum” as per following details:-

Retail Spectrum Wealth Spectrum Institutional Spectrum

Caters to a large numberof retail clients by offering all products under one roof through our branch network & online mode

Equity & Commodity

Trading

Personal Financial Services

Online Investment

Loans against Shares

Distribution of Mutual

Funds

Personal Credit

Personal Loan Services

Distribution of Saving

Products

To provide customizedwealth advisory services to high net worth individuals

Wealth Advisory Services

Portfolio Management

Services

International Equity

Arts Initiative

Priority Client Equity

Services

To forge and build strongrelationships with corporate and institutional clients

Institutional Equity Broking

Investment Banking

Merchant Banking

Transaction Advisory

Services

Schemes Related to Equity Trading are as follows:

Product Offering: Classic Scheme – Equity Segment

16 Analysis of Indian Stock Market and Comparison of Corporate Stock Brokers

Page 17: Summer Training Report by Deepak Dhingra

Anagram Capital Ltd.

Classic Scheme Variable Brokerage (%) A/C Opening

Charges

Client’s Option

For the scheme

Pay INR Delivery Intraday

(each leg)

F&O

(each leg)

Mark

2758

5515

11030

27575

55150

110300

0.30

0.30

0.25

0.20

0.15

0.10

0.03

0.03

0.025

0.02

0.015

0.01

0.03

0.03

0.025

0.02

0.015

0.01

Nil

Nil

Nil

Nil

Nil

Nil

Terms & Conditions:

1. All statutory Charges like STT, Exchange charges, Stamp duty & any other charges will be charged separately.

2. Minimum brokerage as prescribed by SEBI will be charged in the option Segment. However, there will be minimum brokerage applicable for all other segments.

3. Margins on the trades would be as per the norms of the Exchange/s.

4. The cheque has to be drawn in the name of “Anagram Capital Ltd”.

5. After payment for the Classic scheme, the client account will be marked against the respective Variable brokerage structure.

6. Client will be charged at agreed brokerage rate as herein specified for a period of 12 months from subscription payment or till the complete utilization of subscription paid under the scheme, whichever is earlier. Any Adjustments in respect of Auction brokerage shall not be made against the subscription amount paid under the scheme since auction brokerage is not a part of this scheme

17 Analysis of Indian Stock Market and Comparison of Corporate Stock Brokers

Page 18: Summer Training Report by Deepak Dhingra

7. In case the client executes trades on various Exchange/s, through Anagram group Company/ies [being member/ s of other Exchange/s], Anagram shall adjust/reverse the appropriate amount, from time to time, across the trading account/s of the client maintained with Anagram group company/ies.

8. In case the above scheme is discontinued by Anagram, the client will charged the variable brokerage slab of 0.50% in delivery transaction, 0.05% (each leg) in intraday transaction & in F&O/derivative segment.

Declaration from Client/s:

1. I/We understand that Classic Scheme will be valid for maximum period of 1 year from enrolment in scheme.

2. I/We understand Classic Scheme once paid for, by me/us will not be refunded to me/us in any circumstances.

3. I/We understand that after payment of the Classic Scheme, my/our trading/investment account will be marked against the respective Variable brokerage structure, marked above.

4. I/We understand that this Classic Scheme will be adjusted (to the extent of the Classic Scheme amount paid by me/us), on a monthly basis against brokerage earned by Anagram (Anagram Capital Ltd & Anagram Stock broking Ltd) on the trades executed by me/us in my/our trading/investment account.

5. I/We hereby confirm that I/We have understood the above schemes and that I/We willfully agree to the terms and conditions of the scheme herein provided and the same shall be binding upon me/us.

6. I/We also agree that Anagram shall have unconditional rights to discontinue this scheme anytime without notice. However, in case where Anagram opts to amend the scheme, it shall arrange an advance notice of 7 days to me/us to intimate the amendments.

Kindly Find enclosed my cheque of Rs ________________, Chq No.____________ , Drawn On____________, Dt._________ favoring Anagram Capital Ltd , towards the Classic Scheme – Equity as above.

Client Code: _____________Client Name: __________________ Mobile No:_____________________

Client Signature……………………………… Email:…………………………………………

List of Corporate Stock Brokers that are the Competitors of Anagram Capital Ltd.

Karvy Consultants Ltd Centrum

18 Analysis of Indian Stock Market and Comparison of Corporate Stock Brokers

Page 19: Summer Training Report by Deepak Dhingra

Prabhudas Lilladher Century invest

Sharekhan Chona Financial Services (P) Ltd.

AnandRathi CIL Securities Ltd

JM Financial Ltd Competent Finman Pvt Ltd

Kotak Securities Ltd Composite Investments Private Ltd

Motilal Oswal Securities Ltd Consortium Securities Pvt Ltd

Ambit Holdings Crimson Financial Services Ltd/ Crimson

Commodity Ltd

Indiabulls Crosseas Capital Services

Moneypore Crown Group

RBS Broking India Dani Shares & Stocks Pvt Ltd

5Paisa.com Dawnay Day AV Securities Pvt Ltd

Edelweiss Dynamic

Enam Securities Pvt Ltd Elite Stock Management Ltd (ESML)

HSBC InvestDirect (India) Limited (HIL) Eureka Stock & Share Broking Services

Ltd

Kisan Ratilal Choksey Shares & Securities Farsight Group

Pvt Ltd

Mathew Easow Financial Services Fortune Financial Services (India) Ltd

DJS Stock and Shares Ltd Globe Group

Hybrid Financial Services Ltd Gogia International Securities Ltd India

Modern Shares & Stock Brokers Ltd Gupta Equities Pvt Ltd

Munoth Financial Services Ltd (MFSL) Hem Group

Pioneer Investcorp Ltd (PINC) ICDS Securities Ltd

Ratnabali Capital Markets Ltd ICICI Securities

16anna.com IDBI Capital Market Services Ltd

A.G. Shares & Securities Ltd IDFC-SSKI Group

Abhipra India Infoline

Adroit Financial Services Pvt Ltd Indira Group

Ajay Natavarlal Securities Pvt. Ltd. Innovate Securities Pvt. Ltd.

Amit Nalin Securities Pvt Ltd (ANSec) ITI Financial Services Limited

19 Analysis of Indian Stock Market and Comparison of Corporate Stock Brokers

Page 20: Summer Training Report by Deepak Dhingra

Angel Broking Ltd Jaypee Capital Services Ltd.

Anugrah Stock & Broking Pvt Ltd Jhaveri Securities Pvt. Ltd.

Anush Shares and Securities Pvt Ltd JRG Securities Ltd

Apeejay Securities Private Limited JV Capital Services (P) Ltd

Apollo Sindhoori Capital Investments Ltd Kassa Finvest Pvt Ltd

ASL Capital Holdings Private Ltd Khambatta Securities Ltd

Astha Credit & Securities (P) Ltd Khandwala Group

Bharat Bhushan & Company Labdhi Finance Corporation

Microsec Macquarie Securities Pvt Ltd

Modex International Securities Ltd Magnum.co.in

MSB Group Marfatia Stock Broking Pvt. Ltd.

Navia Markets Ltd MG Group of Companies

Padmakshi Financial Services Pvt. Ltd Shah Investors Home Ltd

Parsoli Corporation Limited Shardul Securities Ltd

Pee Aar Securities Limited Share Mart

PKJ Share Brokers Ltd. Shree Naman Developers Limited

Prayas Securities Pvt. Ltd. Shreepati Holdings & Fin. Pvt. Ltd

PSJ Securities Pvt. Ltd. Shreyas Stocks Pvt Ltd

R. Wadiwala Securities Pvt. Ltd. Shri Parasram Holdings Pvt Ltd

R.K. Global Shares & Securities Ltd SKP Securities Ltd

Reliance Money Sumedha Fiscal Services Ltd

Religare Enterprises Ltd Sushil Finance

Bonanza Portfolio Ltd Swastika Investmart Ltd

Amrapali Capital and Finance Services Ltd Unicon Investment Solutions

Aryan Share and Stockbrokers Ltd Ventura Securities Ltd

OTHER INFORMATION ABOUT ANAGRAM

20 Analysis of Indian Stock Market and Comparison of Corporate Stock Brokers

Page 21: Summer Training Report by Deepak Dhingra

Edelweiss to acquire Anagram Capital:

Edelweiss has entered into an agreement to acquire Anagram Capital for Rs. 164 crore in an all-cash

transaction. With a nation-wide network of more than 150 branches and over 1,400 sub-brokers,

Anagram has one of the widest geographical reach among retail broking firms.

The company has more than 1.80 lakh clients and estimated total revenue of Rs. 100 crore for the nine

months ended December 31, 2009. The company’s average daily equity trading volume is about Rs.

800 crore. Edelweiss plans to operate Anagram as a 100 per cent subsidiary with clear focus on

continuity and building on the current business and people with investments in research, products,

training and technology.

“This acquisition is in synch with Edelweiss’ plan to expand the retail broking business. The

acquisition of Anagram, with its reach and large, high quality and diversified client base, will give

impetus to Edelweiss’ retail broking and distribution businesses.

What makes this transaction exciting is the minimal overlap between the broking operations of both

companies. We are also impressed with Anagram’s professional management team and the consistent

focus on client service and risk management. I welcome all employees, Anagram’s clients and partners

to the Edelweiss family,” said Rashesh Shah, Chairman, Edelweiss Group, said.

With a view to focussing on its core business of textiles, Gujarat-based Lalbhai group on Wednesday

exited its domestic broking business by selling its firm, Anagram Capital, to Edelweiss Capital.

“The Lalbhai group’s core business is textiles and it is a global leader in denim. It is also diversifying

into other businesses and since finance does not form a core business for the group, it was decided to

sell-off the business,” Anagram Capital’s CEO, Mayank Shah, told PTI here. In the late-1990s, ICICI

had acquired Anagram Finance, another Lalbhai group company.

REGISTERATION DETAILS

21 Analysis of Indian Stock Market and Comparison of Corporate Stock Brokers

Page 22: Summer Training Report by Deepak Dhingra

Anagram Stockbroking Limited

BSE Cash SEBI Regn. No.: INB011257152, BSE F&O SEBI Regn. No.: INF010808537 PMS Regn. No.: INP000002031, NSDL DP SEBI Regn. No.: IN-DP-NSDL-180-2000, Mutual Fund: ARN 3068

Anagram Capital Limited

NSE Cash SEBI Regn. No.: INB230597630, NSE F&O SEBI Regn. No.: INF230597630 NSE Currency Derivative SEBI Regn. No: INE230597630

Anagram Comtrade Limited

MCX-10425; NCDEX-00205; NMCE- CL0126, National Spot Exchange Limited – 11270

Registered Office

Anagram House, H. L. Commerce College - Stadium Road Near Commerce Six Circle, Navrangpura, Ahmedabad 380 009

LIST OF STOCK EXCHANGES IN INDIA

22 Analysis of Indian Stock Market and Comparison of Corporate Stock Brokers

Page 23: Summer Training Report by Deepak Dhingra

OTC Exchange of India

Madras Stock Exchange Ltd.

The Uttar Pradesh Stock Exchange Association Ltd.

Cochin Stock Exchange Ltd.

Jaipur Stock Exchange Ltd.

Bangalore Stock Exchange Ltd.

National Stock Exchange of India Ltd.

Gauhati Stock Exchange Ltd.

The Ludhiana Stock Exchange Ltd.

The Calcutta Stock Exchange Association Ltd

Bhubaneshwar Stock Exchange Ltd.

The Delhi Stock Exchange Ltd.

Vadodara Stock Exchange Ltd.

Madhya Pradesh Stock Exchange Ltd.

Bombay Stock Exchange Ltd.

Magadh Stock Exchange

Ahmedabad Stock Exchange Ltd.

Pune Stock Exchange Ltd.

Mangalore Stock Exchange

MCX Stock Exchange Ltd

Hyderabad Stock Exchange

Saurashtra Kutch Stock Exchange (SKSE)

Coimbatore Stock Exchange

23 Analysis of Indian Stock Market and Comparison of Corporate Stock Brokers

Page 24: Summer Training Report by Deepak Dhingra

Analysis of Indian Stock Market

24 Analysis of Indian Stock Market and Comparison of Corporate Stock Brokers

Page 25: Summer Training Report by Deepak Dhingra

In general, the financial market divided into two parts, Money market and capital market. Securities

market is an important, organized capital market where transaction of capital is facilitated by means of

direct financing using securities as a commodity. Securities market can be divided into a primary

market and secondary market.

PRIMARY MARKET

The primary market is an intermittent and discrete market where the initially listed shares are traded

first time, changing hands from the listed company to the investors. It refers to the process through

which the companies, the issuers of stocks, acquire capital by offering their stocks to investors who

supply the capital. In other words primary market is that part of the capital markets that deals with the

issuance of new securities. Companies, governments or public sector institutions can obtain funding

through the sale of a new stock or bond issue. This is typically done through a syndicate of securities

dealers. The process of selling new issues to investors is called underwriting. In the case of a new

stock issue, this sale is called an initial public offering (IPO). Dealers earn a commission that is built

into the price of the security offering, though it can be found in the prospectus.

SECONDARY MARKET

The secondary market is an on-going market, which is equipped and organized with a place, facilities

and other resources required for trading securities after their initial offering. It refers to a specific place

where securities transaction among many and unspecified persons is carried out through

intermediation of the securities firms, i.e., a licensed broker, and the exchanges, a specialized trading

organization, in accordance with the rules and regulations established by the exchanges.

A bit about history of stock exchange they say it was under a tree that it all started in 1875.Bombay

Stock Exchange (BSE) was the major exchange in India till 1994.National Stock Exchange (NSE)

started operations in 1994.

NSE was floated by major banks and financial institutions. It came as a result of Harshad Mehta scam

of 1992. Contrary to popular belief the scam was more of a banking scam than a stock market scam.

The old methods of trading in BSE were people assembling on what is called a ring in the BSE

25 Analysis of Indian Stock Market and Comparison of Corporate Stock Brokers

Page 26: Summer Training Report by Deepak Dhingra

building. They had a unique sign language to communicate apart from all the shouting. Investors

weren't allowed access and the system was opaque and misused by brokers. The shares were in

physical form and prone to duplication and fraud.

NSE was the first to introduce electronic screen based trading. BSE was forced to follow suit. The

present day trading platform is transparent and gives investors prices on a real time basis. With the

introduction of depository and mandatory dematerialization of shares chances of fraud reduced further.

The trading screen gives you top 5 buy and sell quotes on every scrip.

A typical trading day starts at 9.00 am ending at 3.30 pm. Monday to Friday. BSE has 30 stocks which

make up the Sensex .NSE has 50 stocks in its index called Nifty. FII s Banks, financial institutions

mutual funds are biggest players in the market. Then there are the retail investors and speculators. The

last ones are the ones who follow the market morning to evening; Market can be very addictive like

blogging though stakes are higher in the former.

ORIGIN OF INDIAN STOCK MARKET

26 Analysis of Indian Stock Market and Comparison of Corporate Stock Brokers

Page 27: Summer Training Report by Deepak Dhingra

The origin of the stock market in India goes back to the end of the eighteenth century when long-term

negotiable securities were first issued. However, for all practical purposes, the real beginning occurred

in the middle of the nineteenth century after the enactment of the companies Act in 1850, which

introduced the features of limited liability and generated investor interest in corporate securities.

An important early event in the development of the stock market in India was the formation of the

native share and stock brokers 'Association at Bombay in 1875, the precursor of the present day

Bombay Stock Exchange. This was followed by the formation of associations/exchanges in

Ahmedabad (1894), Calcutta (1908), and Madras (1937). In addition, a large number of ephemeral

exchanges emerged mainly in buoyant periods to recede into oblivion during depressing times

subsequently.

Stock exchanges are intricacy inter-woven in the fabric of a nation's economic life. Without a stock

exchange, the saving of the community- the sinews of economic progress and productive efficiency-

would remain underutilized. The task of mobilization and allocation of savings could be attempted in

the old days by a much less specialized institution than the stock exchanges. But as business and

industry expanded and the economy assumed more complex nature, the need for 'permanent finance'

arose. Entrepreneurs needed money for long term whereas investors demanded liquidity – the facility

to convert their investment into cash at any given time. The answer was a ready market for

investments and this was how the stock exchange came into being.

Stock exchange means anybody of individuals, whether incorporated or not, constituted for the

purpose of regulating or controlling the business of buying, selling or dealing in securities. These

securities include:

(i) Shares, scrip, stocks, bonds, debentures stock or other marketable securities of a like nature in or of

any incorporated company or other body corporate;

(ii) Government securities; and

(iii) Rights or interest in securities.

27 Analysis of Indian Stock Market and Comparison of Corporate Stock Brokers

Page 28: Summer Training Report by Deepak Dhingra

The Bombay Stock Exchange (BSE) and the National Stock Exchange of India Ltd (NSE) are the two

primary exchanges in India. In addition, there are 22 Regional Stock Exchanges. However, the BSE

and NSE have established themselves as the two leading exchanges and account for about 80 per cent

of the equity volume traded in India. The NSE and BSE are equal in size in terms of daily traded

volume. The average daily turnover at the exchanges has increased from Rs 851 crore in 1997-98 to Rs

1,284 crore in 1998-99 and further to Rs 2,273 crore in 1999-2000 (April - August 1999). NSE has

around 1500 shares listed with a total market capitalization of around Rs 9, 21,500 crore. Analysis of

Indian Stock Market and Comparison of Corporate Stock Brokers

The BSE has over 6000 stocks listed and has a market capitalization of around Rs 9, 68,000 crore.

Most key stocks are traded on both the exchanges and hence the investor could buy them on either

exchange. Both exchanges have a different settlement cycle, which allows investors to shift their

positions on the bourses. The primary index of BSE is BSE Sensex comprising 30 stocks. NSE has the

S&P NSE 50 Index (Nifty) which consists of fifty stocks. The BSE Sensex is the older and more

widely followed index.

Both these indices are calculated on the basis of market capitalization and contain the heavily traded

shares from key sectors. The markets are closed on Saturdays and Sundays. Both the exchanges have

switched over from the open outcry trading system to a fully automated computerized mode of trading

known as BOLT (BSE on Line Trading) and NEAT (National Exchange Automated Trading) System.

It facilitates more efficient processing, automatic order matching, faster execution of trades and

transparency; the scrip's traded on the BSE have been classified into 'A', 'B1', 'B2', 'C', 'F' and 'Z'

groups. The 'A' group shares represent those, which are in the carry forward system (Badla). The 'F'

group represents the debt market (fixed income securities) segment. The 'Z' group scrip's are the

blacklisted companies. The 'C' group covers the odd lot securities in 'A', 'B1' & 'B2' groups and Rights

renunciations. The key regulator governing Stock Exchanges, Brokers, Depositories, Depository

participants, Mutual Funds, FIIs and other participants in Indian secondary and primary market is the

Securities and Exchange Board of India (SEBI) Ltd.

28 Analysis of Indian Stock Market and Comparison of Corporate Stock Brokers

Page 29: Summer Training Report by Deepak Dhingra

BACKGROUND OF STOCK EXCHANGE IN INDIA

The emergence of stock market can be traced back to 1830. In Bombay, business passed in the shares

of banks like the commercial bank, the chartered mercantile bank, the chartered bank, the oriental bank

and the old bank of Bombay and shares of cotton presses. In Calcutta, Englishman reported the

quotations of 4%, 5%, and 6% loans of East India Company as well as the shares of the bank of

Bengal in 1836. This list was a further broadened in 1839 when the Calcutta newspaper printed the

quotations of banks like union bank and Agra bank. It also quoted the prices of business ventures like

the Bengal bonded warehouse, the Docking Company and the storm tug company.

Between 1840 and 1850, only half a dozen brokers existed for the limited business. But during the

share mania of 1860-65, the number of brokers increased considerably. By 1860, the number of

brokers was about 60 and during the exciting period of the American Civil war, their number increased

to about 200 to 250. The end of American Civil war brought disillusionment and many failures and the

brokers decreased in number and prosperity. It was in those troublesome times between 1868 and 1875

that brokers organized an informal association and finally as recited in the Indenture constituting the

“Articles of Association of the Exchange”. On or about 9th day of July,1875, a few native brokers

doing brokerage business in shares and stocks resolved upon forming in Bombay an association for

protecting the character, status and interest of native share and stock brokers and providing a hall or

building for the use of the members of such association.

As a meeting held in the broker’ Hall on the 5th day of February, 1887, it was resolved to execute a

formal deal of association and to constitute the first managing committee and to appoint the first

trustees. Accordingly, the Articles of Association of the Exchange and the Stock Exchange was

formally established in Bombay on 3rd day of December, 1887. The Association is now known as

“The Stock Exchange”.

The entrance fee for new member was Re.1 and there were 318 members on the list, when the

exchange was constituted. The numbers of members increased to 333 in 1896, 362 in 1916and 478 in

1920 and the entrance fee was raised to Rs.5 in 1877, Rs.1000 in 1896, Rs.2500 in 1916 and Rs.

48,000 in 1920. At present there are 23 recognized stock exchanges with about 6000 stock brokers. 14

stock exchanges are organized as public limited companies, 6 as companies limited by guarantee and 3

29 Analysis of Indian Stock Market and Comparison of Corporate Stock Brokers

Page 30: Summer Training Report by Deepak Dhingra

are non-profit voluntary organization. Of the total of 23, only 9 stock exchanges have been permanent

recognition. Others have to seek recognition on annual basis.

These exchange do not work of its own, rather, these are run by some persons and with the help of

some persons and institution. All these are down as functionaries on stock exchange. These are

1. Stockbrokers

2. Sub-broker

3. Market makers

4. Portfolio Consultants etc.

1.) Stockbrokers:

Stock brokers are the members of stock exchanges. These are the persons who buy,

sell or deal in securities. A certificate of registration from SEBI is mandatory to act as a broker. SEBI

can impose certain conditions while granting the certificate of registrations. It is obligatory for the

person to abide by the rules, regulations and the buy-law. Stock brokers are commission broker, floor

broker, arbitrageur etc.

2.) Sub-broker:

A sub-broker acts as agent of stock broker. He is not a member of a stock exchange.

He assists the investors in buying, selling or dealing in securities through stockbroker. The broker and

sub-broker should enter into an agreement in which obligations of both should be specified. Sub-

broker must be registered SEBI for a dealing in securities. For getting registered with SEBI, he must

fulfill certain rules and regulation.

3.) Market Makers:

Market maker is a designated specialist in the specified securities. They make

both bid and offer at the same time. A market maker has to abide by bye-laws, rules regulations of the

concerned stock exchange. He is exempt from the margin requirements. As per the listing

30 Analysis of Indian Stock Market and Comparison of Corporate Stock Brokers

Page 31: Summer Training Report by Deepak Dhingra

requirements, a company where the paid-up capital is Rs. 3 crore but not more than Rs. 5 crore and

having a commercial operation for less than 2 years should appoint a market maker at the time of issue

of securities.

4.) Portfolio Consultants:

A combination of securities such as stocks, bonds and money market

instruments is collectively called as portfolio. Whereas the portfolio consultants are the persons, firms

or companies who advise, direct or undertake the management or administration of securities or funds

on behalf of their clients.

31 Analysis of Indian Stock Market and Comparison of Corporate Stock Brokers

Page 32: Summer Training Report by Deepak Dhingra

ABOUT NSE AND BSE

Formation:

The National Stock Exchange of India was promoted by leading financial institutions at the

behest of the Government of India, and was incorporated in November 1992 as a tax-paying company.

In April 1993, it was recognized as a stock exchange under the Securities Contracts (Regulation) Act,

1956. NSE commenced operations in the Wholesale Debt Market (WDM) segment in June 1994. The

Capital Market (Equities) segment of the NSE commenced operations in November 1994, while

operations in the Derivatives segment commenced in June 2000.

Bombay Stock Exchange Limited is the oldest stock exchange in Asia with a rich heritage. Popularly

known as "BSE", it was established as "The Native Share Stock Brokers Association" in 1875.

It was the first stock exchange in the country to obtain permanent recognition in 1956 from the

Government of India under the Securities Contracts (Regulation) Act, 1956. Earlier an Association of

Persons (AOP), the Exchange is now a demutualised and corporatized entity incorporated under the

provisions of the Companies Act, 1956, pursuant to the BSE (Corporatization and Demutualization)

Scheme, 2005 notified by the Securities and Exchange Board of India (SEBI).Bombay Stock

Exchange Limited received its Certificate of Incorporation on 8th August, 2005 and Certificate of

Commencement of Business on 12th August, 2005. The Exchange has succeeded the business and

operations of BSE ongoing concern basis and its recognition as an Exchange has been continued by

SEBI.

Members:

While the BSE has over 874 members-brokers across the country, NSE has more than 1000 members.

In NSE, a prospective trading member is admitted to any of the following combinations of market

segments: Wholesale Debt Market segment, Capital Market (CM) and the Futures and Options

segments, CM Segment and the WDM segment, or CM Segment, the WDM and the F and O segment.

There is no such thing at BSE and members join as any of the following: Trading Members, Trading

32 Analysis of Indian Stock Market and Comparison of Corporate Stock Brokers

Page 33: Summer Training Report by Deepak Dhingra

cum Clearing Members, Professional clearing member, Limited trading member and Self Clearing

member.

For NSE: In order to be admitted as a trading member, the individual trading member/at least two

partners of the applicant firm/at least two directors of the applicant corporate must be graduates and

must possess at least two years' experience in securities markets. The applicant for trading

membership/any of its partners/shareholders/directors must not have been declared defaulters on any

stock exchange, must not be debarred by SEBI for being associated with capital market as

intermediaries and must not be engaged in any fund-based activity. The trades executed on the

Exchange may be cleared and settled by a clearing member.

The initial joining fee for a member at BSE is Rs. 90 Lakhs while that for an NSE member is between

100 to 300 Lakh depending on the kind of membership one chooses.

In addition to annual fees, NSE members are required to pay transaction charges on trades undertaken

by them. They pay transaction charge at the rate of Rs. 3.5 for every Rs. 1 lakh of turnover in the CM

segment. The transaction charges payable to the exchange by the trading member for the trades

executed by him on the F&O segment are fixed at the rate of Rs. 2 per lakh of turnover (0.002%)

subject to a minimum of Rs. 1, 00,000 per year. At BSE, these fees differ according to the various

types of members.

For BSE: The requirements to becoming a member are:

1. Authorized By NSC as A Brokerage House

2. Authorization of BSE

3. Negotiation from NSC

4. Trained Staff at BSE (Brokers, Traders, Accountants)

5. Data on Member Registration

6. Company By-Laws

33 Analysis of Indian Stock Market and Comparison of Corporate Stock Brokers

Page 34: Summer Training Report by Deepak Dhingra

7. Membership Fee

8. Financial Statements

9. Company Mission Statements

10. Handbook on Internal Operations & Control

11. Personal Information File for Management and Specialized Staff

12. Contribution to the Guarantee Fund

13. Payment for the Licensed Access to Use the Operating System

Listing:

Listing means formal admission of a security to the trading platform of the Exchange. In BSE, the

securities may be of any public limited company, Central or State Government, quasi governmental

and other financial institutions/corporations, municipalities, etc. The objectives of listing are mainly to

provide liquidity to securities; mobilize savings for economic development; protect interest of

investors by ensuring full disclosures. The Exchange has a separate Listing Department to grant

approval for listing of securities of companies in accordance with the provisions of the Securities

Contracts (Regulation) Act, 1956, Securities Contracts (Regulation) Rules, 1957, Companies Act,

1956, Guidelines issued by SEBI and Rules, Bye-laws and Regulations of the Exchange. A company

intending to have its securities listed on the Exchange has to comply with the listing requirements

prescribed by the Exchange.

At NSE, the following criteria’s are to be fulfilled when one applies to be listed:

Approval of Memorandum and Articles of Association

Approval of draft prospectus

Submission of Application

Listing conditions and requirements

34 Analysis of Indian Stock Market and Comparison of Corporate Stock Brokers

Page 35: Summer Training Report by Deepak Dhingra

Once a company fulfils these criteria’s then they have to submit the following to the board:

1. A brief note on the promoters and management.

2. Company profile.

3. Copies of the Annual Report for last 3 years.

4. Copies of the Draft Offer Document.

5. Memorandum & Articles of Association.

The listing fees depend on the companies paid up capital at both NSE and BSE. While the initial

listing fee at NSE is Rs.7500, it is Rs.20, 000 at BSE. The annual listing fees for a company with a

paid up capital up to Rs. 5 Crores is Rs. 10,000 at BSE while it is Rs. 8,400 at NSE. For a company

with paid up capital between 5 to 10 crores, BSE charges Rs. 15,000 while NSE charges Rs. 10,000.

Indices:

The main Index of BSE is SENSEX while that of NSE is CNX Nifty. The other indices at BSE are:

BSE 500, BSE 100, BSE 200, BSE PSU, BSE MIDCAP, BSE SMLCAP, BSE BANKEX, BSE Teck,

BSE Auto, BSE Pharma, BSE Fast Moving Consumer Goods (FMCG), BSE Consumer Durables

(SYMBOL: Cons Dura), BSE Metal. NSE also set up as index services firm known as India Index

Services & Products Limited (IISL) and has launched several stock indices, including: S&P CNX

Nifty, CNX Nifty Junior, CNX 100 (= S&P CNX Nifty + CNX Nifty Junior), S&P CNX 500 (= CNX

100 + 400 major players across 72 industries), CNX Midcap (introduced on 18 July 2005 replacing

CNX Midcap 200).

35 Analysis of Indian Stock Market and Comparison of Corporate Stock Brokers

Page 36: Summer Training Report by Deepak Dhingra

CALCULATION OF SENSEX

SENSEX is calculated using a "Market Capitalization-Weighted" methodology. As per this

methodology, the level of index at any point of time reflects the total market value of 30 component

stocks relative to a base period. (The market capitalization of a company is determined by multiplying

the price of its stock by the number of shares issued by the company). An index of a set of combined

variables (such as price and number of shares) is commonly referred as a 'Composite Index' by

statisticians. A single indexed number is used to represent the results of this calculation in order to

make the value easier to work with and track over time. It is much easier to graph a chart based on

indexed values than one based on actual values.

The base period of SENSEX is 1978-79. The actual total market value of the stocks in the Index

during the base period has been set equal to an indexed value of 100. This is often indicated by the

notation 1978-79=100. The formula used to calculate the Index is fairly straightforward. However, the

calculation of the adjustments to the Index (commonly called Index maintenance) is more complex.

The calculation of SENSEX involves dividing the total market capitalization of 30 companies in the

Index by a number called the Index Divisor. The Divisor is the only link to the original base period

value of the SENSEX. It keeps the Index comparable over time and is the adjustment point for all

Index maintenance adjustments. During market hours, prices of the index scrip’s, at which latest trades

are executed, are used by the trading system to calculate SENSEX every 15 seconds and disseminated

in real time.

36 Analysis of Indian Stock Market and Comparison of Corporate Stock Brokers

Page 37: Summer Training Report by Deepak Dhingra

CLOSURE OF SENSEX

The closing SENSEX is computed taking the weighted average of all the trades on SENSEX

constituents in the last 15 minutes of trading session. If a SENSEX constituent has not traded in the

last 15 minutes, the last traded price is taken for computation of the Index closure. If a SENSEX

constituent has not traded at all in a day, then its last day's closing price is taken for computation of

Index closure. The use of Index Closure Algorithm prevents any intentional manipulation of the

closing index value.

MAINTAINENCE OF SENSEX

One of the important aspects of maintaining continuity with the past is to update the base year average.

The base year value adjustment ensures that additional issue of capital and other corporate

announcements like bonus etc. do not destroy the value of the index. The beauty of maintenance lies in

the fact that adjustments for corporate actions in the Index should not per se affect the index values.

The Index Cell of the Exchange does the day-to-day maintenance of the index within the broad index

policy framework set by the Index Committee. The Index Cell takes special care to ensure that

SENSEX and all the other BSE indices maintain their benchmark properties by striking a delicate

balance between high turnover in Index scrip’s and its representative character. The Index Committee

of the Exchange has experts from different field of finance related to the capital markets. They include

Academicians, Fund-managers from leading Mutual Funds, Finance - Journalists, Market Participants,

Independent Governing Board members, and Exchange administration.

SENSEX UPDATION

During market hours, prices of the index scrip’s, at which trades are executed, are automatically used

by the trading computer to calculate the SENSEX every 15 seconds and continuously updated on all

trading workstations connected to the BSE trading computer in real time.

37 Analysis of Indian Stock Market and Comparison of Corporate Stock Brokers

Page 38: Summer Training Report by Deepak Dhingra

COMPANIES LISTED IN NIFTY

As on Friday, July 16th, 2010

ABB ltd.

ACC ltd.

Ambuja cements

BHEL

Axis bank ltd.

Bharat petroleum corporation ltd.

Bharti Airtel ltd.

Cairn India ltd.

Cipla ltd.

DLF ltd.

GAIL

HCL tech ltd.

HDFC bank ltd.

Hero Honda motors ltd.

Hindalco Industries ltd.

Hindustan Unilever ltd.

HDFC finance corporation ltd.

ITC ltd.

ICICI Bank ltd.

Idea cellular ltd.

Infosys Technologies ltd.

Infrastructure Development Finance Co.ltd.

Jaiprakash associates ltd.

Jindal Steel and Power ltd.

Kotak Mahindra bank ltd.

Larsen and Tubro ltd.

Mahindra and Mahindra ltd.

38 Analysis of Indian Stock Market and Comparison of Corporate Stock Brokers

Page 39: Summer Training Report by Deepak Dhingra

Maruti Suzuki India ltd.

NTPC ltd.

ONGC

Power grid corporation of India ltd.

PNB

Ranbaxy Laboratories ltd.

Reliance Capital ltd.

Reliance Infrastructure ltd.

Reliance Communications ltd.

Reliance Industries ltd.

Reliance Power ltd.

Siemens ltd.

SBI

SAIL

Sterlite Industries ltd.

Sun Pharmaceuticals Industries ltd.

Suzlon Energy ltd.

TCS

Tata Motors ltd.

Tata Power co. ltd.

Tata Steel ltd

Unitech ltd.

Wipro ltd.

COMPANIES LISTED IN SENSEX

39 Analysis of Indian Stock Market and Comparison of Corporate Stock Brokers

Page 40: Summer Training Report by Deepak Dhingra

As on Friday, 16th July

HDFC

DLF

ONGC

Reliance Infra

Sterlite India

Mahindra and Mahindra

Tata Motors

Reliance Communications

Wipro

Tata Power

Tata Steel

Reliance

NTPC

Jaiprakash Associates

Maruti Suzuki

Jindal Steel

SBI

Larsen

ICICI Bank

Infosys

Bharti Airtel

TCS

HDFC Bank

Hindalco

BHEL

Hero Honda

Cipla

ACC

HUL

40 Analysis of Indian Stock Market and Comparison of Corporate Stock Brokers

Page 41: Summer Training Report by Deepak Dhingra

ITC

DIFFERENCE BETWEEN BSE AND NSE

41 Analysis of Indian Stock Market and Comparison of Corporate Stock Brokers

Page 42: Summer Training Report by Deepak Dhingra

Basis BSE NSE

Market capitalization of listed companies

Rs. 4,670,227 crore Rs. 3,367,350 crore.

Number of members 951 (Oct 2007) 1,009 as on March 2007

Number of listed companies 4,867 OCT(2007) 1,288 (March 2007)

Geographical spread Presence in 417 cities Presence in 1,486 cities

Website www.bseindia.com www.nse-india.com

Main Index BSE Sensex S & P CNX Nifty

Owner Bombay Stock Exchange National Stock Exchange of India

Limited

Key people Rajnikant Patel (CEO) R.H. Patil (Founder, MD)

Claim to fame Oldest stock exchange in Asia. Third largest stock exchange

in the world in terms of volumes.

Established in 1875 1993

Name Bombay Stock Exchange National Stock Exchange

Location Mumbai Mumbai

Index value 17,326.01 ( 2009) 6,097 (2007)

No. of trader workstations 15,151(Oct 2007)

42 Analysis of Indian Stock Market and Comparison of Corporate Stock Brokers

Page 43: Summer Training Report by Deepak Dhingra

MARKET BASICS

Electronic Trading:

43 Analysis of Indian Stock Market and Comparison of Corporate Stock Brokers

Page 44: Summer Training Report by Deepak Dhingra

Electronic trading eliminates the need for physical trading floors. Brokers

can trade from their offices, using fully automated screen-based processes. Their workstations are

connected to a Stock Exchange's central computer via satellite using Very Small Aperture Terminus

(VSATs). The orders placed by brokers reach the Exchange's central computer and are matched

electronically.

Exchanges in India:

The Stock Exchange, Mumbai (BSE) and the National Stock Exchange (NSE)

are the country's two leading Exchanges. There are 20 other regional Exchanges, connected via the

Inter-Connected Stock Exchange (ICSE). The BSE and NSE allow nationwide trading via their VSAT

systems.

Index:

An Index is a comprehensive measure of market trends, intended for investors who are

concerned with general stock market price movements. An Index comprises stocks that have large

liquidity and market capitalization. Each stock is given a weight age in the Index equivalent to its

market capitalization. At the NSE, the capitalization of NIFTY (fifty selected stocks) is taken as a base

capitalization, with the value set at 1000. Similarly, BSE Sensitive Index or Sensex comprises 30

selected stocks. The Index value compares the day's market capitalization vis-à-vis base capitalization

and indicates how prices in general have moved over a period of time.

Execute an Order:

Select a broker of your choice and enter into a broker-client agreement and fill

in the client registration form. Place your order with your broker preferably in writing. Get a trade

confirmation slip on the day the trade is executed and ask for the contract note at the end of the trade

date.

Need a Broker:

44 Analysis of Indian Stock Market and Comparison of Corporate Stock Brokers

Page 45: Summer Training Report by Deepak Dhingra

As per SEBI (Securities and Exchange Board of India.) regulations, only registered

members can operate in the stock market. One can trade by executing a deal only through a

registered broker of a recognized Stock Exchange or through a SEBI-registered sub-broker.

Contract Note:

A contract note describes the rate, date, time at which the trade was transacted

and the brokerage rate. A contract note issued in the prescribed format establishes a legally

enforceable relationship between the client and the member in respect of trades stated in the contract

note. These are made in duplicate and the member and the client both keep a copy each. A client

should receive the contract note within 24 hours of the executed trade.

Split:

A Split is book entry wherein the face value of the share is altered to create a greater number of

shares outstanding without calling for fresh capital or altering the share capital account. For example,

if a company announces a two-way split, it means that a share of the face value of Rs 10 is split into

two shares of face value of Rs 5 each and a person holding one share now holds `two shares.

Buy Back:

As the name suggests, it is a process by which a company can buy back its shares from

shareholders. A company may buy back its shares in various ways: from existing shareholders on a

proportionate basis; through a tender offer from open market; through a book-building process; from

the Stock Exchange; or from odd lot holders. A company cannot buy back through negotiated deals on

or off the Stock Exchange, through spot transactions or through any private arrangement.

Settlement Cycle:

The accounting period for the securities traded on the Exchange. On the NSE, the

cycle begins on Wednesday and ends on the following Tuesday, and on the BSE the cycle commences

on Monday and ends on Friday. At the end of this period, the obligations of each broker are calculated

and the brokers settle their respective obligations as per the rules, bye- laws and regulations of the

Clearing Corporation. If a transaction is entered on the first day of the settlement, the same will be

45 Analysis of Indian Stock Market and Comparison of Corporate Stock Brokers

Page 46: Summer Training Report by Deepak Dhingra

settled on the eighth working day excluding the day of transaction. However, if the same is done on

the last day of the settlement, it will be settled on the fourth working day excluding the day of

transaction.

Rolling Settlement:

The rolling settlement ensures that each day's trade is settled by keeping a fixed

gap of a specified number of working days between a trade and its settlement. At present, this gap is

five working days after the trading day. The waiting period is uniform for all trades. In a Rolling

Settlement, all trades outstanding at end of the day have to be settled, which means that the buyer has

to make payments for securities purchased and seller has to deliver the securities sold. In India, we

have adopted the T+5 settlements cycle, which means that a transaction entered into on Day 1 has to

be settled on the Day 1 + 5 working days, when funds pay in or securities pay out takes place.

Advantages of Rolling Settlements

As mentioned earlier, this is the system practiced in developed countries. Pay outs are quicker than in

weekly settlements, and investors will benefit from increased liquidity. The other benefit of the

modified system is that it keeps cash and forward markets separate. In the current system, the trader

has five days to square off his transaction which leads to a high level of speculation as people even

without funds tend to "play" the market. During volatile markets, especially in a bearish market, this

often leads to a payment problem which has dogged the Indian stock exchanges for a long time. It

provides for a higher degree of safety, and once mechanisms such as futures and stock-lending become

popular, it would result in quality speculation and genuine investor interest.

Short Selling:

Short selling is a legitimate trading strategy. It is a sale of a security that the seller does

not own, or any sale that is completed by the delivery of a security borrowed by the seller. Short

sellers take the risk that they will be able to buy the stock at a more favorable price than the price at

which they "sold short."

46 Analysis of Indian Stock Market and Comparison of Corporate Stock Brokers

Page 47: Summer Training Report by Deepak Dhingra

The selling of a security that the seller does not own, or any sale that is completed by the delivery of a

security borrowed by the seller, Short sellers assume that they will be able to buy the stock at a lower

amount than the price at which they sold short.

Auction:

An auction is conducted for those securities that members fail to deliver/short deliver

during pay-in. Three factors primarily give rise to an auction: short deliveries, un-rectified bad

deliveries, and un-rectified company objections.

Separate Market for Auctions:

The buy/sell auction for a capital market security is managed

through the auction market. As opposed to the normal market where trade matching is an on-going

process, the trade matching process for auction starts after the auction period is over. If the shares are

not bought at the auction i.e. if the shares are not offered for sale, the Exchange squares up the

transaction as per SEBI guidelines. The transaction is squared up at the highest price from the relevant

trading period till the auction day or at 20 per cent above the last available Closing price whichever is

higher. The pay-in and pay-out of funds for auction square up is held along with the pay-out for the

relevant auction.

Bad Delivery:

SEBI has formulated uniform guidelines for good and bad delivery of documents. Bad

delivery may pertain to a transfer deed being torn, mutilated, overwritten, defaced, or if there are

spelling mistakes in the name of the company or the transfer. Bad delivery exists only when shares are

transferred physically. In "Demat" bad delivery does not exist.

Dematerialization:

Dematerialization in short called as 'demat' is the process by which an investor can

get physical certificates converted into electronic form maintained in an account with the Depository

Participant. The investors can dematerialize only those share certificates that are already registered in

their name and belong to the list of securities admitted for dematerialization at the depositories.

47 Analysis of Indian Stock Market and Comparison of Corporate Stock Brokers

Page 48: Summer Training Report by Deepak Dhingra

Depository:

The organization responsible to maintain investor's securities in the electronic form is

called the depository. In other words, a depository can therefore be conceived of as a "Bank" for

securities. In India there are two such organizations viz. NSDL and CDSL. The depository concept is

similar to the Banking system with the exception that banks handle funds whereas a depository

handles securities of the investors. An investor wishing to utilize the services offered by a depository

has to open an account with the depository through Depository Participant.

Depository Participant:

The market intermediary through whom the depository services can be

availed by the investors is called a Depository Participant (DP). As per SEBI regulations, DP could be

organizations involved in the business of providing financial services like banks, brokers, custodians

and financial institutions. This system of using the existing distribution channel (mainly constituting

DPs) helps the depository to reach a wide cross section of investors spread across a large geographical

area at a minimum cost. The admission of the DPs involves a detailed evaluation by the depository of

their capability to meet with the strict service standards and a further evaluation and approval from

SEBI. Realizing the potential, all the custodians in India and a number of banks, financial institutions

and major brokers have already joined as DPs to provide services in a number of cities.

48 Analysis of Indian Stock Market and Comparison of Corporate Stock Brokers

Page 49: Summer Training Report by Deepak Dhingra

49 Analysis of Indian Stock Market and Comparison of Corporate Stock Brokers

Page 50: Summer Training Report by Deepak Dhingra

COMPARISON OF CORPORATE STOCKBROKERS

Criteria Offer Provided

Types of Account 2

A/C Opening Fees(Trading + Demat) 900/-

Brokerage Intraday 0.03% - 0.10%

Delivery 0.25% - 0.50%

AMC None

Lead Time 1 Week

Margin Intraday 3 times

Delivery 12 times

Interest Rate None

Sauda Expiry T+5

Software Power Indiabulls (750/-)

Criteria Offer Provided

Types of Account 2

A/C Opening Fees(Trading + Demat) 555/- + 300/-

Brokerage Intraday 0.05%

Delivery 0.5%

AMC 300/-

Lead Time 1 Week

Margin Intraday 3 times

50 Analysis of Indian Stock Market and Comparison of Corporate Stock Brokers

Page 51: Summer Training Report by Deepak Dhingra

Delivery 12 times

Interest Rate 18%

Sauda Expiry T+5

Software ODIN

Criteria Offer Provided

Types of Account 2

A/C Opening Fees(Trading + Demat) 500/- + 40/-

Brokerage Intraday 0.01%

Delivery 0.10%

AMC 300/-

Lead Time 4-5 days

Margin Intraday 4 times

Delivery 10 times

Interest Rate 18%

Sauda Expiry Never

Software ODIN

Criteria Offer Provided

Types of Account 2

A/C Opening Fees(Trading + Demat) 2520/-

51 Analysis of Indian Stock Market and Comparison of Corporate Stock Brokers

Page 52: Summer Training Report by Deepak Dhingra

Brokerage Intraday 0.03%

Delivery 0.30%

AMC 2000/-

Lead Time 7-8 days

Margin Intraday 5 times

Delivery 10 times

Interest Rate 18%

Sauda Expiry T+3

Software GOTX

Criteria Offer Provided

Types of Account 2

A/C Opening Fees(Trading + Demat) 200/- + 651/-

Brokerage Intraday 0.01% to 0.03%

Delivery 0.10% to 0.30%

AMC 350/-

Lead Time 1 week

Margin Intraday 7 times

Delivery 10 times

Interest Rate 18%

Sauda Expiry T+5

Software ODIN

52 Analysis of Indian Stock Market and Comparison of Corporate Stock Brokers

Page 53: Summer Training Report by Deepak Dhingra

53 Analysis of Indian Stock Market and Comparison of Corporate Stock Brokers

Page 54: Summer Training Report by Deepak Dhingra

STATEMENT OF PROBLEM

To select a corporate broker that is rated highest on customer satisfaction level.

OBJECTIVE

To conduct a study on awareness level of people about stock brokers in Panipat city.

To study the market share of Anagram Capital Ltd in the Panipat city.

What factors should Anagram Capital Limited consider to become a market leader?

To find out the problems faced by clients while trading with Anagram Capital Ltd.

To identify the drawbacks in the current system of trading and suggesting improvements in

the same.

To get practically exposed to the trading market.

Steps in Research Methodology are as follows:-

Research Problem:

I was trying to study the Corporate Stock Brokers. Under this the problem is

that I had to know the factors on the basis of which client takes decision to open Demat account.

Research Design:

A good research design is that design which is made keeping in view the objective

of research and availability of staff, time, & money. I have also selected Exploratory Research studies

which are as follows:

Area of Study - The area of my research project was Panipat.

Sample Design:

A sample design is a definite plan for obtaining a sample for a given population. It

refers to the technique or the procedure and the researcher would adopt in selecting items of sample.

Sample design may as well lay down the number of items to be included in the sample i.e. the size of

the sample. Sample design is determined before data is collected.

54 Analysis of Indian Stock Market and Comparison of Corporate Stock Brokers

Page 55: Summer Training Report by Deepak Dhingra

Sampling Area - Panipat

Sampling Size - 20 clients of Anagram Capital Ltd. and 50 clients of other corporate

brokers.

Data Collection:

Data collection is most important part of research because the research is based on it.

There are several ways of collecting data which differs considerably in terms of cost, time and other

resources at the disposal of the researchers. The data collection method for this research work is from

primary source as well as secondary. The survey is carried out through a non probability convenience

sampling in Panipat through a structured questionnaire.

Type of Data:

There are two types of Data:

1) Primary

2) Secondary

Primary Source: Source from where first hand information gathered directly are called primary

source and thus information collected is called Primary data. In case of above study the primary source

was consumer.

Primary Data: - The techniques available for collecting primary data are:

Observation method

Questionnaire method

Interview method

Secondary Source: - The source of information already gathered for some other purpose are available

is called secondary data, with regard to my study secondary sources of my study where records of the

company, magazines and papers. The Secondary data was collected on the basis of requirement,

conveniences and reliability of the data.

55 Analysis of Indian Stock Market and Comparison of Corporate Stock Brokers

Page 56: Summer Training Report by Deepak Dhingra

Out of these I have chosen questionnaire method to collect the data because of low cost, free from the

bias of other interviewer and respondent.

Collection of data through Questionnaire:

This method of data collection is quite popular

particularly in case of big enquires, private individuals, research workers, private and public

organizations and even is adopting it by governments. In this method I went to the clients personally

and asked them to fill the questionnaire.

Findings and Analysis:

Interview

This study was conducted to find out corporate broker that is rated highest on customer

satisfaction level. The people undergoing the test were divided into 7 categories.

1. Clients of Anagram Capital Ltd.

2. College Students

3. Working Professionals (Desk Work)

4. Servicemen

5. Businessmen

56 Analysis of Indian Stock Market and Comparison of Corporate Stock Brokers

Page 57: Summer Training Report by Deepak Dhingra

For the purpose of research project I had applied the following process:

57 Analysis of Indian Stock Market and Comparison of Corporate Stock Brokers

Page 58: Summer Training Report by Deepak Dhingra

58 Analysis of Indian Stock Market and Comparison of Corporate Stock Brokers

Page 59: Summer Training Report by Deepak Dhingra

ANALYSIS & INTERPRETATION

59 Analysis of Indian Stock Market and Comparison of Corporate Stock Brokers

Name of Companies

Brokerage Charged

Page 60: Summer Training Report by Deepak Dhingra

Amt.

in Rupees

Amt.

in Rupees

Interpretation:

On an average Indiainfoline is rated highest on brokerage while on the other

hand Angel Stock Broking Limited is the company that charges the least brokerage on both

intraday and delivery transactions.

Interpretation:

60 Analysis of Indian Stock Market and Comparison of Corporate Stock Brokers

A/C Opening Charges

Name of Companies

Page 61: Summer Training Report by Deepak Dhingra

Karvy Securities charges the maximum account opening fees and the Annual

Maintenience Charges while Angel Stock broking is on the other extreme.

61 Analysis of Indian Stock Market and Comparison of Corporate Stock Brokers

Page 62: Summer Training Report by Deepak Dhingra

Amt.

in Rupees

Amt.

in Rupees

62 Analysis of Indian Stock Market and Comparison of Corporate Stock Brokers

Name of Companies

Page 63: Summer Training Report by Deepak Dhingra

ANALYSIS & INTERPRETATION (CLIENTS OF ACL)

Q1: Who are you?

No. of Respondents Percentage

(a) Trader 15 75%

(b) Investor 5 25%

Interpretation:

After survey, it is found that 75% of the respondents are traders and the rest 25% are

investors.

63 Analysis of Indian Stock Market and Comparison of Corporate Stock Brokers

Page 64: Summer Training Report by Deepak Dhingra

Q2: What is your favorite instrument of saving?

No. of Respondents Percentage

(a) Stock Market 16 80%

(b) Others (specify)……. 4 20%

Interpretation:

After survey, it is found that 80% of the respondents like stock market whereas 20%

like others instruments like insurance, mutual funds, etc.

64 Analysis of Indian Stock Market and Comparison of Corporate Stock Brokers

Page 65: Summer Training Report by Deepak Dhingra

Q3: What is the basic purpose of your investment?

No. of Respondents Percentage

(a) Returns 14 70%

(b) Capital Appreciation 3 15%

(c) Tax Benefits 1 5%

(d) Others (specify)……. 2 10%

Interpretation:

After survey, it is found that the purpose of 70% of the respondents are returns & of

15% of the respondents are capital appreciation & of 5% of the respondents are tax benefits & the rest

are others.

65 Analysis of Indian Stock Market and Comparison of Corporate Stock Brokers

Page 66: Summer Training Report by Deepak Dhingra

Q4: What is the time horizon of your investment?

No. of Respondents Percentage

(a) 1-30 days 3 15%

(b) 1-6 months 1 5%

(c) More than 6 months 1 5%

(d) Depend upon profits 15 75%

Interpretation:

After survey, it is found that the time horizon of 15% of the respondents are 1-30

days & of 5% of the respondents are 1-6 months & of 5% of the respondents are more than 6 months

& for the rest 75% are depend upon profits.

66 Analysis of Indian Stock Market and Comparison of Corporate Stock Brokers

Page 67: Summer Training Report by Deepak Dhingra

Q5: Your source of information of Anagram Capital Limited is

No. of Respondents Percentage

(a) Newspaper 3 15%

(b) Internet 2 10%

(c) Friends/Relatives 2 10%

(d) Existing clients of ACL 13 65%

Interpretation:

After survey, it is found that the source of information of 15% of the respondents are

newspaper & of 10% of the respondents are internet & of 10% of the respondents are more

friends/relatives & for the rest 65% are existing clients of ACL.

67 Analysis of Indian Stock Market and Comparison of Corporate Stock Brokers

Page 68: Summer Training Report by Deepak Dhingra

Q6: How would you rate the following elements of Anagram Capital Limited?

Excellent Very good Good Poor

(a) Knowledge of employees you deal with

15% 35% 40% 10%

(b) Ability to resolve problems 20% 40% 35% 5%

(c) Quality of advice 20% 30% 45% 5%

Interpretation:

After survey, it is found that 40% of the respondents feel that knowledge of

employees of ACL are good and 40% of the respondents feel that ability to resolve problems of ACL

are very good and 45% of the respondents feel that quality of advice of ACL are good.

68 Analysis of Indian Stock Market and Comparison of Corporate Stock Brokers

Page 69: Summer Training Report by Deepak Dhingra

Q7: Based on your experience with ACL, use a tick to indicate how you feel about the online services (software provided and back office support) of ACL?

No. of Respondents Percentage

(a) Friendly 13 65%

(b) Unfriendly 7 35%

Interpretation:

After survey, it is found that 65% of the respondents feel that online services

(software) provided by ACL are friendly whereas 35% of the respondents feel that online services

(software) provided by ACL are unfriendly.

69 Analysis of Indian Stock Market and Comparison of Corporate Stock Brokers

Page 70: Summer Training Report by Deepak Dhingra

ANALYSIS & INTERPRETATION (NON-CLIENTS)

Q1: Do you have a pan card?

No. of Respondents Percentage

(a) Yes 48 96%

(b) No 2 4%

Interpretation:

After survey, it is found that 96% of the respondents (non-clients of ACL) have pan

card whereas 4% of the respondents don’t have pan card.

70 Analysis of Indian Stock Market and Comparison of Corporate Stock Brokers

Page 71: Summer Training Report by Deepak Dhingra

Q2: Who are you?

No. of Respondents Percentage

(a) Trader 40 80%

(b) Investor 10 20%

Interpretation:

After survey, it is found that 80% of the respondents are traders and the rest 20% are

investors.

71 Analysis of Indian Stock Market and Comparison of Corporate Stock Brokers

Page 72: Summer Training Report by Deepak Dhingra

Q3: What is the time horizon of your investment?

No. of Respondents Percentage

(a) 1-30 days 9 18%

(b) 1-6 months 6 12%

(c) More than 6 months 4 8%

(d) Depend upon profits 31 62%

Interpretation:

After survey, it is found that the time horizon of 18% of the respondents are 1-30

days & of 12% of the respondents are 1-6 months & of 8% of the respondents are more than 6 months

& for the rest 62% are depend upon profits.

72 Analysis of Indian Stock Market and Comparison of Corporate Stock Brokers

Page 73: Summer Training Report by Deepak Dhingra

Q4: What is your preferred medium of receiving research report and tips from your

dealer?

No. of Respondents Percentage

(a) SMS Facility 35 70%

(b) Instant messaging 7 14%

(c) E-mail 5 10%

(d) others 3 6%

Interpretation:

After survey, it is found that for 70% of the respondents preferred SMS facility as a

medium of receiving tips whereas14 % & 10% respondents preferred instant messaging & e-mail

respectively.

73 Analysis of Indian Stock Market and Comparison of Corporate Stock Brokers

Page 74: Summer Training Report by Deepak Dhingra

Q4: In which company you have d-mat and trading account?

No. of Respondents Percentage

(a) Karvy Securities 6 12%

(b) India Infoline Security Pvt. Ltd. 18 36%

(c) Indiabulls Securities Ltd. 14 28%

(d) Others 12 24%

Interpretation:

After survey, it is found that 12% of the respondents have d-mat & trading account

in Karvy Securities whereas 36% of the respondents are in India Infoline & 28% of the respondents

are in Indiabulls.

74 Analysis of Indian Stock Market and Comparison of Corporate Stock Brokers

Page 75: Summer Training Report by Deepak Dhingra

Q6: Are you satisfied with you present broking firm?

No. of Respondents

(a) Yes 36

(b) No 14

Interpretation:

After the survey, it is found that India Infoline is the company whose clients are most

satisfied with the services of the company and other column signifies that some other company(s) is

rated as the least preferred companies of the respective clients

75 Analysis of Indian Stock Market and Comparison of Corporate Stock Brokers

Page 76: Summer Training Report by Deepak Dhingra

Q7: State the reason for your satisfaction?

No. of Respondents Percentage

(a) Services 15 30%

(b) Brokerage 20 40%

(c) Operating Expenses 9 18%

(d) Others 6 12%

Interpretation:

76 Analysis of Indian Stock Market and Comparison of Corporate Stock Brokers

Page 77: Summer Training Report by Deepak Dhingra

After the survey, it is found that brokerage is the most convenient factor on which the

respondents are satisfied. The brokerage chart (mentioned above) also displays that Angel Stock

Broking has the least brokerage charged from its clients.

77 Analysis of Indian Stock Market and Comparison of Corporate Stock Brokers

Page 78: Summer Training Report by Deepak Dhingra

CONCLUSION

• According to the survey most of the clients of “Anagram Capital Ltd.” say that the research data

provided is sufficient for them to take intelligent trading decisions.

• Anagram Capital Limited takes much in to account the budget of their clients and then takes any

investment decisions.

• People pay more emphasis on brokerage than service provided by brokerage houses.

• Angel stock broking Ltd. came out to be a leading company on the following points:

Brokerage

Fees charged

Awareness

Anagram Capital Ltd. is also an upcoming challenging competitor to Angel Stockbroking Ltd.

78 Analysis of Indian Stock Market and Comparison of Corporate Stock Brokers

Page 79: Summer Training Report by Deepak Dhingra

79 Analysis of Indian Stock Market and Comparison of Corporate Stock Brokers

Page 80: Summer Training Report by Deepak Dhingra

LIMITATIONS

Size of the research may not be substantial.

There was lack of time on the part of respondents.

There may be biasness in information by market participant.

Due to limitation of time a sample size of only 50 respondents were chosen.

The sample for research was chosen only from a limited area.

Some of the respondents may be biased in giving responses.

Complete data was not available due to company privacy and secrecy.

80 Analysis of Indian Stock Market and Comparison of Corporate Stock Brokers

Page 81: Summer Training Report by Deepak Dhingra

81 Analysis of Indian Stock Market and Comparison of Corporate Stock Brokers

Page 82: Summer Training Report by Deepak Dhingra

SUGGESTIONS TO ANAGRAM CAPITAL LTD.

Improvement in the time delay of account opening is required.

There should be a specific number of clients under each relationship manger, so that each client can

be attended properly and can be imparted desired time.

Some promotional activities are required for the awareness of the customer, seminars should be held

for providing information to prospective and present customers.

People at young age should be encouraged to invest in stock market.

The company officials should maintain healthy relationship with their clients.

82 Analysis of Indian Stock Market and Comparison of Corporate Stock Brokers

Page 83: Summer Training Report by Deepak Dhingra

83 Analysis of Indian Stock Market and Comparison of Corporate Stock Brokers

Page 84: Summer Training Report by Deepak Dhingra

QUESTIONNAIRE FOR CLIENT OF ANAGRAM CAPITAL LIMITED

Dear Respondent,

This information revealed by you will be used for institutional work only. This will be a part of my

summer Training Project. No information will be disclosed to any outside party. Please spare

sometime to fill in this questionnaire.

Q1. Who you are?

(a)Trader (b) Investor

Q2. What is your favorite instrument of saving?

(a) Stock Market (b) Others (specify) _________

Q3. What is the basic purpose of your investment?

(a) Returns (b) Capital Appreciation

(c) Tax benefits (d) Others (specify) _________

Q4. What is the time horizon of your investment?

(a) 1-30 days (b) 1-6 months

(c) More than 6 months (d) depends upon the profit

Q5. Your source of information of Anagram Capital Limited is.

(a) Newspaper (b) Internet

(c) Friends/ Relatives (d) Existing clients of ACL

Q6. How would you rate the following elements of Anagram Capital Limited? (Please tick)

84 Analysis of Indian Stock Market and Comparison of Corporate Stock Brokers

Page 85: Summer Training Report by Deepak Dhingra

Excellent Very good Good Poor

Knowledge of employees you deal with

Ability to resolve problems

Quality of advice

Q7. Based on your experience with ACL, use a tick to indicate how you feel about the online services

(software provided and back office support) of ACL?

(a) Friendly (b) Unfriendly

Q8. Feedback (if any)

_________________________________________________________________________________

_________________________________________________________________________________

Please tell a little about yourself:

Name: -…………………………………………………………………

Age: - (a) 20-30years (b) 31-40years

(c) 40-50years (d) Above 50years

Contact No. : -………………………………………………………

Address: -………………………………………………………………………………….

Gender: - (a) Male (b) Female

Marital status: - (a) Married (b) Unmarried

Education: - (a) Under Graduate (b) Graduate

(c) Post Graduate (d) Other

Occupation: - (a) Business (b) Service

(c) Professional (d) Others

85 Analysis of Indian Stock Market and Comparison of Corporate Stock Brokers

Page 86: Summer Training Report by Deepak Dhingra

QUESTIONNAIRE FOR NON-CLIENTS

Dear Respondent,

This information revealed by you will be used for institutional work only. This will be a part of my

Summer Training Project. No information will be disclosed to any outside party. Please spare

sometime to fill in this questionnaire.

Q1. Do you have a pan card?

(a)Yes (b) No

Q2. Who you are?

(a) Trader (b) Investor

Q3. What is the time horizon of your investment?

(a) 1-30 days (b) 1-6 months

(c) More than 6 months (d) depends upon the profit

Q4. What is your preferred medium of receiving research report and tips from your dealer?

(a) SMS facility (b) Instant messaging

(c) E-mail (d) others (specify) ________

Q5. In which company you have d-mat and trading account?

(a) Karvy Securities (b) IndiaInfoline Security Private Limited

(c) Indiabulls Securities Limited (d) Others (specify) _________

Q6. Are you satisfied with you present broking firm?

(a)Yes (b) No

Q7. State the reason for your satisfaction?

(a) Services (b) Brokerage

86 Analysis of Indian Stock Market and Comparison of Corporate Stock Brokers

Page 87: Summer Training Report by Deepak Dhingra

(c) Operating expenses (d) Others

Q8. Feedback (if any)

___________________________________________________________________________

___________________________________________________________________________

Please tell a little about yourself:

Name: -………………………………………………

Age: - (a) 20-30years (b) 31-40years

(c) 40-50years (d) Above 50years

Contact No. : -…………………………………………..

Address: -…………………………………………………………

Gender: - (a) Male (b) Female

Marital status: - (a) Married (b) Unmarried

Education: - (a) Under Graduate (b) Graduate

(c) Post Graduate (d) Other

Occupation: - (a) Business (b) Service

(c) Professional (d) Others

87 Analysis of Indian Stock Market and Comparison of Corporate Stock Brokers

Page 88: Summer Training Report by Deepak Dhingra

ABBREVIATIONS USED

BSE - Bombay Stock Exchange

CSDL - Central Securities Depository Limited

CARE - Credit Analysis & Research Limited

CRISIL - Credit Rating Information Services of India Limited

F&O - Futures and Options

FPO - Follow up Public Offering

IISL - India Index Services & Products Ltd.

ICRA - Investment Information and Credit Rating Agency of India

NCDEX - National Commodity and Derivatives Exchange Ltd.

NSCCL - National Securities Clearing Corporation Limited

CDSL - Central Depositories Services Ltd.

DRF - Demat Request Form

DCA - Department of Company Affairs

DEA - Department of Company Affairs

DP - Depository Participant

FII - Foreign Institutional Investors

FMC - Forward Markets Commission

IPO - Initial Public Offer

ISIN - International Securities Identification Number

NEAT - National Exchange for Automated Trading

NSDL - National Securities Depository Limited

NAV - Net Asset Value

NYSE - New York Stock Exchange

NCFM - NSE’ Certification in Financial Markets

88 Analysis of Indian Stock Market and Comparison of Corporate Stock Brokers

Page 89: Summer Training Report by Deepak Dhingra

OTC - Over The Counter

RRF - Remat Request Form

SBTS - Screen Based Trading System

T+2 - Second day from the trading day

SEBI - Securities and Exchange Board of India

SAT - Securities Appellate Tribunal

SCRA - Securities Contract (Regulation) Act

SCRR - Securities Contract (Regulation) Rules

S&P - Standard & Poor

ICSE - Inter-Connected Stock Exchange

VSAT’s - Very Small Aperture Terminus

IBT - Internet-based Trading

ACL - Anagram Capital Ltd.

89 Analysis of Indian Stock Market and Comparison of Corporate Stock Brokers

Page 90: Summer Training Report by Deepak Dhingra

BIBLIOGRAPHY

Kothari. C. R, Research Methodology, New Age International (P) Ltd., New Delhi (2008 Edition).

Marketing Research- Harper W. Boyd, Jr. Ralph Westfall, Stanley F. Stasch (2007 Edition).

M.D. Rashikh Irfan - Stock exchanges in India.

WEBLIOGRAPHY

http://www.anagram.co.in

http://www.moneycontrol.com

http://www.karvy.com

http://www.bseindia.com

http://www.nseindia.com

http://www.nseindia.com/content/indices/ind_niftylist.csv

http://www.tradersedgeindia.com/bse_sensex.htm

http://www.indiahowto.com/what-is-sensex-nifty.html

http://www.moneycontrol.com/sensex/bse/sensex-live

http://www.google.com

90 Analysis of Indian Stock Market and Comparison of Corporate Stock Brokers