A

Project Study Report

On

Training Undertaken at

Motilal Oswal Securities Limited

Titled

“ Investment and Securities Analysis ”

Submitted in partial fulfillment for the

Award of degree of

Master of Business Administration

Submitted By: -

Submitted To:- Jitendra

Dr. Sonal Jain

MBA 4th SEM H.O.D.

Deepshikha College of Technical Education, Jaipur2009-2011

Jitendra

VirahyasJVIRAHYAS@GMAIL.COM

Certificate2

 DECLARATION

Jitendra S/O Mr. ............... declares that the project report titled “Investment and

Securities Analysis” is based on my project study. This project report is my original work

and this has not been used for any purpose anywhere.

 

Jitendra

MBA 4th SEM

3

Deepshikha College of Technical Education, Jaipur

Preface

Masters of Business Administration is conducted with providing knowledge to the

students regarding various type of management like financial management, marketing

management and production management etc.

As per the requirement of MBA course Motilal Oswal Securities Limited has been

kind enough to permit me to complete my project on “Investment And Securities Analysis”.

This report prepared during the practical training. Which is student’s first and

greatest treasure as it is full of experience, observation and knowledge.

The summer training was very interesting and gainful as it is close to real what have

been studied is all the years through was seen implemented in a modified and practical

form.

I have done my training in Motilal Oswal Securities Limited at Sumerpur for 45 days.

Mr. Jitendra Virahyas {jvirahyas@gmail.com} help in my study. During this training period I

have learned about Back office work, trading work, and security market and sector analysis.

I have come to know that how does security market function and how one can deal in stock

market and how to manage risk and portfolio. Thus it was really beneficial for me in terms of

knowledge and experience.

The only fault was that the time available was short and there was much to learn, yet

the things learned shall never be oblivion and are of great aid in the near future. I sincerely

believe that the research can be useful to the organization and others as well Motilal Oswal

Securities Limited.

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Acknowledgement

I express my sincere thanks to my project guide, Mr. Jitendra Virahyas, Branch in

charge (Money Seed), of Motilal Oswal Securities Limited., for guiding me right from the

inception till the successful completion of the project. I sincerely acknowledge him/her/them

for extending their valuable guidance, support for literature, critical reviews of project and

the report and above all the moral support he/she/they had provided to me with all stages of

this project.

I would also like to thank the supporting staff of all the company Department,

especially for the Mr. Jitendra Virahyas {jvirahyas@gmail.com} for their help and

cooperation throughout our project.

( Jitendra )

5

Executive Summery

The Indian stock market have seen various stages of economic cycles if we look at

market condition then we find that at the beginning of the year 2008 the market was on

cloud nine (all time high on 10 January 2008) Sensex was 21207.83. But after reaching it’s

all time high it has started to show strong resistance to carry on and the result of the

resistance and sharp slump in the world economy, the bull suddenly turned into bear and all

expectations of investors that market will reach 25000 just turned into dream and according

to current situation that is for away from reality. Investors just shocked due to slump in the

market condition, they have rethink about investment alternatives risk and returns. Capital

appreciation and time value of money.

Since investment become a basic need of everyone so each and every person wants

to secure his investment and willing to get good returns and capital appreciation upon the

investment fund. This study really gives an overview about how and when we invest in

various sectors. That how can invest money for future safety in various markets such as

primary market, secondary market, Govt. security market etc.

Thus the study is providing knowledge about investment scenario and guiding the

investors for safe investment with the help of economic analysis, fundamental analysis, and

financial analysis. One can analysis the market and understand the nature and movement

of market for safe investment and can become wiser investor that is most challenging thing

in current scenario. 

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Contents

1. Introduction to the industry 8

2. Introduction of organization 14

3. Research Methodology 72

3.1. Title of the Study 72

3.2. Duration of the Project 72

3.3. Objective of Study 72

3.4. Type of Research 72

3.5. Sample Size and method of selecting sample 73

3.6. Scope of Study 73

3.7. Limitation of Study 77

4. Facts and Findings 78

5. Analysis and Interpretation 79

6. SWOT 84

7. Conclusion 95

8. Recommendation and Suggestions 96

9. Appendix 97

10. Bibliography 100

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1. INTRODUCTION TO THE INDUSTRY

Broking industry is growing for last ten year with leaps & bounces to Indian

economy and stock market. Brokerage houses are known as intermediaries between

market and investor and play a key role in execute the functions to carry on the stock

market. All the brokerage houses having different sort of charges and fee according to

their facilities and efficiency provided to investors. They manage the portfolio, risk

management and providing guidance to investor for dealing in security market the major

players of Indian broking industry are as follows:-

1. Motilal Oswal Securities Limited

2. Bonanza Portfolio Limited

3. Religare Limited

4. Hem Securities Limited

5. Angle Broking Limited

6. India bulls Securities Limited

7. Anand Rathi Securities Limited 

8. Share khan Limited

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1.1. ANALYSIS OF PLAYERS IN THE INDUSTRY

Unicon

Unicon has been founded with the aim of providing world class investing

experience to hitherto underserved investor community. The technology today has

made it possible to reach out to the last person in the financial market and give him the

same level of service which was available to only the selected few.

unicon give personalized premium service with reasonable commissions on the

NSE, BSE & Derivative market through our Equity broking arm Unicon Securities Pvt.

Ltd. With our sophisticated technology you can trade through your computer and if you

want human touch you can also deal through our Relationship Managers out of our

more than 100 branches spread across the nation.

Religare securities

Trading in Equities with Religare truly empowers you for your investment needs.

We ensure you have a superlative trading experience through -

A highly process driven, diligent approach

Powerful Research & Analytics and

One of the “best-in-class” dealing rooms

Further, Religare also has one of the largest retail networks, with its presence

in more than 1800* locations across more than 490* cities and towns. This means,

you can walk into any of these branches and connect to our highly skilled and

dedicated relationship managers to get the best services.

The Religare Edge:-

Pan India footprint

Powerful research and analytics supported by a pool of highly skilled research

analysts

Ethical business practices

Offline/Online delivery models

Single window for all investment needs through your unique CRN

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Anand Rathi

Anand Rathi (AR) is a leading full service securities firm providing the entire

gamut of financial services. The firm, founded in 1994 by Mr. Anand Rathi, today has

a pan India presence as well as an international presence through offices in Dubai

and Bangkok. AR provides a breadth of financial and advisory services including

wealth management, investment banking, corporate advisory, brokerage &

distribution of equities, commodities, mutual funds and insurance, structured

products – all of which are supported by powerful research teams.

India set to emerge as one of the world’s largest retail financial services

markets. India’s GDP growth has averaged 6.5% since 1994 and expected to

continue to grow at 8+%.

Increasing sophistication of financial markets

Indian consumer’s affinity for equity

Emergence of large domestic retail brokerage houses

India has nearly 10,000 brokers; most of them are small family businesses

The last 5-7 years has witnessed the emergence of large institutional players

driving consolidation of the retail financial services market

Global players are starting to make strategic inroads into the retail financial

services market

Foreign broking houses dominate FII based institutional broking

Some global majors like Citigroup are making inroads into retail by leveraging

their network

E-trade has announced majority ownership of IL&FS Investment

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Bonanza Portfolio Limited

Bonanza, a leading financial services &brokerage house working diligently

since 1994 can be describe in a single word as a “financial powerhouse”. With

acknowledged industry leadership in execution and clearing services on exchange

traded derivatives and cash market products, bonanza has spread its trustworthy

tentacles all over the country with more than 1050 outlets spread across 350 cities.

It provides an extensive range of services in equity, commodities, currency

derivatives, wealth management, distribution of third party product, etc.

1.2. COMPETITION WITHIN THE INDUSTRY:

Competition within this industry is very high , there are lots of new company’s

coming in this business , although Bonanza Portfolio Limited has good reputation but

competition is so high and due to recession all the brokerage firm are badly affected and

Bonanza Portfolio Limited is also affected . This market is centre of attraction to new

entrepreneur because it is already fast growing market and it is for sure that it will go

further, and there are many opportunities lying ahead in the way .but although it is

successful industry competition affect the major players. And bonanza is one of the

successful players in this industry. it is working very efficiently to fight back with

competition and challenging its competitor by satisfying its customer at most level of

their satisfaction.

It has many competitors which are providing different type of services .the brief

introduction of its competitor is given below:

5paisa.com :

5paisa is the trade name of India info line securities private limited (5paisa),

member of NSE and BSE. 5paisa is the wholly owned subsidiary of India info line

limited, India’s leading and most popular finance and investment portal. 5paisa has

emerged as one of leading player in e-broking space in India .their key products are

investor’s terminal and trade terminal .its special feature is that it is not charging any

kind of AMC which provides comfortable tariff card to its client. It provides the facility

of margin for intraday and delivery as well as.

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Icici Direct.com:

Icici Direct.com is the most comprehensive website, which allows its client the

opportunity to invest in share, mutual fund, derivative (future and option) and other

financial products .they offer their clients a product for every investment need. This

provide the facility of cash trading, margin trading, margin plus trading, spot trading

and BTST facility to its client. It also provides the facility of margin and funding for

facilitating its client to trade with more money.

Share khan:

Share khan is also one of the close competitors of bonanza. It facilitate its

client in many ways .although it is not as big as India info line and icici direct.com,

etc, but it is still going forward speedily by winning the trust of its customers. Its

product range includes classic trade, speed trade, and speed trade plus. Which

facilitate its client during trading? It has also the producer for providing the market

and funding the trade.

Anand Rathi:

Anand rathi (AR) is a leading full service securities firm providing the entire

range of financial services. AR provides a breadth of financial and advisory services

including wealth management, investment banking, corporate advisory, brokerage

and distribution of equities, commodities, mutual funds and insurance –all of which

are supported by powerful research team. Its product includes demate and trading

account. it only provides margin for intraday to its clients , it does not provide funding

for delivery.

Religare:

Religare is driven ethical and dynamic process for wealth creation. based on

this , the company stared its Endeavour in the financial market .a company promoted

, controlled and managed by the promoters of ranbaxy , religare , was founded with

the vision of providing integrated financial care driven by the relationship of trust .

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Kotak security:

Kotak mahindra is one of India’s leading financial institutions, offering

complete financial solution that encompasses every sphere of life. From commercial

banking, to stock broking, to mutual fund, to life insurance, to investment banking,

the group caters to the financial needs of individual and corporate.

Kotak institutional equities has full financial service capability , which includes

derivative , facilitating market access through affiliated and the distinctive offering of

corporate access to investors.

The division services over 250 client including files, pension and mutual fund.

The division has sales desk in Mumbai, London and New York, with India desk also

servicing clients in Hong Kong, Singapore, Japan and Australia.

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2. INTRODUCTION TO THE ORGANIZATION

Motilal Oswal Securities Ltd. (MOSL) was founded in 1987 as a small sub-

broking unit, with just two people running the show. Focus on customer-first-attitude,

ethical and transparent business practices, respect for professionalism, research-based

value investing and implementation of cutting-edge technology has enabled us to

blossom into an almost 2000 member team.

� Registered Office

Palm Spring Centre, 2nd Floor,

Palm Court Complex, New Link Road,

Malad (West), Mumbai - 400 064.

� Corporate Office

Hoechst House, 3rd Floor,

Nariman Point, Mumbai - 400 021.

� Regional

Motilal Oswal Securities Ltd.

SBI Life Insurance Building, Opp. Main Post Office, Jawai Bandh Road,

Sumerpur-306902 (Rajasthan)

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2.1. COMPANY PROFILE

Motilal Oswal Securities Ltd. (MOSL) was found in 1987 as a small sub-broking

unit, with just two people running the show. Focus on customer-first-attitude, ethical and

transparent business practices, respect for professionalism, research-based value

investing and implementation of cutting-edge technology has enabled it to blossom into

an almost 2000 member team.

Motilal Oswal Securities Ltd. is a well diversified financial services firm offering a

range of financial products and services such as Wealth Management, Broking &

Distribution, Commodity Broking, Portfolio Management Services, Institutional Equities,

Private Equity, Investment Banking Services and Principal Strategies.

We have a diversified client base that includes retail customers (including High

Net worth Individuals), mutual funds, foreign institutional investors, financial institutions

and corporate clients. We are headquartered in Mumbai and as of September 30th,

2010, had a network spread over 591 cities and towns comprising 1,504 Business

Locations operated by our Business Partners and us. As at September 30th, 2010, we

had 666,633 registered customers.

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In 2006, the Company placed 9.48% of its equity with two leading private

equity investors based out of the US – New Vernon Private Equity

Limited and Bessemer Venture Partners. The company got listed on BSE and NSE

on September 9, 2007. The issue which was priced at Rs.825 per share (face value

Rs.5 per share) got a overwhelming response and was subscribed 27.18 times in

turbulent market conditions.

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The issue gave a return of 21% on the date of listing. As of end of financial

year 2008, the group net worth was Rs.7 bn and market capitalization as of March

31, 2008 was Rs.19 bn.

Credit rating agency Crisil has assigned the highest rating of P1+ to the

Company’s short-term debt program.

Shareholding Pattern at on 31st December 08. As of December 31st, 2008;

the total shareholding of the Promoter and Promoter Group stood at 70.37%. The

shareholding of institutions stood at 10.07% and non-institutions at 19.56%.

2.2. MOTILAL OSWAL SECURITIES LIMITED PRODUCT AND

SERVICE

2.2.1.EQUITY

Trading Platform offers online Equity & Equity Derivatives trading facilities for

investors. This high-end, efficiently integrated application makes trading convenient,

quick and hassle free.

� Equity Advisory Group: In keeping with its tradition of personalized service,

Motilal Oswal Securities Limited provides Customized Equity Advisory Group to

clients based on their profile. Equity Research is an inherent strength of MOSt.

Our advisory team has highly trained equity professionals, who act as your Equity

Advisor.

� Centralized Advisory Desk (CAD):The MOSt Equity Advisory Group is based in

Mumbai at largest dealing and advisory floor of India.  This centralized advisory

team caters to peculiar Investment need of every HNI & MNI client and business

partner; in a seamless, speedy and reliable manner using state-of-the-art

technology and telecommunication infrastructure.

� Online: MOSt Online is the techno savvy alternate of our broking services. Online

service is for a segment of investors who have different expectations from an

equity wealth manager restricting their willingness and ability to sort to premium

advisory services.

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Benefits

MOSt Advisory Group is equipped to augment and alter the investments in an

effort to create healthy portfolio. MOSt Equity Advisor adjusts the portfolio to value

addition and erosion across the researched companies. On the trading side the

ideas are picked out of bouquet of products suitable to the trading appetite.

Customers will receive regular portfolio valuation reports to enable you to monitor

performance and view the progress towards the investment objective.

2.2.2.DERIVATIVE

Futures &Options (F&O): Futures & options are derivatives, which use equity as

their underlying. Hence our Equity Advisory Group (EAG), will also act as your

advisors for F&O & help you take informed decisions while trading in these derivative

instruments.

Why F&O: Since derivatives instrument provide good leverage opportunity, it is a

great tool for speculation. Leverage is a double edge sword for which one requires

an equity advisor. Our advisors will also help you with various strategies like Bull

Spread, Bear Spread, Cover call writing, hedging strategies etc. This is to help you

to make better trading returns.

EAG Process (Derivatives)

Client Profiling: MOSt Equity Advisor determines each EAG client's profile before

deciding the set of derivative strategies that will ideally suit him/her. Hence if you

have a good risk appetite & are willing to take riskier bets in the expectations of

better returns we will suggest aggressive strategies like buying naked futures.

Trading: The MOSt Equity Advisor is an expert in providing trading ideas, and

at the same time monitoring those ideas as per your profile.

Integrated Approach: We use integrated approach in our trading strategy

using a combination of futures, writing calls, buying puts to help you reach

your trading goal.

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Portfolio Tracking Software: Your F&O position will be continuously monitored

using Portfolio Tracking Software.

Benefits

As the underlying is equities is pays to have the same advisor who is capable of

dealing in both cash as well as derivatives. Also you will not have to deal with

multiple people for equities as a product.

Since the advisory only deals with equity as an asset class, his understanding of

the derivatives and nuances of the market will be better than someone who deals

with multiple asset classes.

The most important of all, the EAG gets inputs from the technical and derivatives

research group, whose sole objective is to identify trading opportunities with a

favourable risk-reward ratio.

The research products of the derivative and Technical desk will be available for

you as a client.

2.2.3.ONLINE TRADING

My Broker: Welcome to Motilal Oswal Securities Ltd. and Trade online through our

MyBroker platform. Be your own broker with complete research support from MOSL

which helps you to make right decision at right time. You can choose your trading a/c

which suits your trading habit’s & preference and trade anywhere, anytime. Buying

and selling is as easy as click of a button.

MyBroker Easy works very fast on low speed internet connection.

MyBroker Mobile Helps you to buy or sell through your mobile phone

MyBroker Desktop works best on high speed internet connection and

suited best for heavy traders

MyBroker Spectrum  is suited best for investors and traders who

want live market watch and faster execution.

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Product Offerings

Value Pac Margin account

Value Pac: Value Pac schemes offers you true “Value for Money”. It is the

upfront subscription scheme, which gives you hefty discounts in brokerage rates with

defined time period to use it. With the wide range of Value Pacs, based on the

Volume of your Trade and the Validity period you can enjoy the benefits of placing

your trades at reduced charges.

Margin account: In case you don't want to commit on Value Pac (upfront

subscription) and still take benefit of reduced brokerage rate; you can opt for our

Margin Account where you would have to give defined upfront margin amount at the

time of opening account.

IPO Offerings

Apply for IPO’s online without filling up physical forms or writing out cheques

Check your IPO order status details

Modify/cancel your bids online

Transfer funds online to your IPO account

Access the latest information and news relating to IPO’s

Mutual Funds Offerings

Transfer funds online to your MF account

Get the latest news and information in the world of Mutual Funds

Avail of top class research on various Mutual Funds

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2.2.4. INSURANCE

Motilal Oswal Securities added Life Insurance during April 2008 to our Wealth

Management Portfolio thereby filling the gap in our basket of the products and thus

providing comprehensive financial planning to our clients covering not all wealth creation

solutions, but also wealth protection through proper risk management process.

MOSL through our insurance partners offers insurance coverage and wealth

creation opportunities to meet your different financial goals during the various stages of

your life. The plans offer you the control to manage your protection and investment in

one account. It is designed to remove your worries and making you secure in the

knowledge that you and your loved ones are protected against any untoward events.

On the basis of which life stage you are in and the corresponding insurance

needs, plans we offer, can be categorized into the following types:

  Offerings

Wealth Solutions

Retirement Solutions

Education Solutions

Securing Life

2.2.5.COMMODITIES

Ever since the dawn of civilization commodities trading have become an integral

part in the lives of mankind. The very reason for this lies in the fact that commodities

represent the fundamental elements of utility for human beings. Over the years

commodities markets have been experiencing tremendous progress, which is evident

from the fact that the trade in this segment is standing as the boon for the global

economy today. The promising nature of these markets has made them an attractive

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investment avenue for investors. Earlier investors invested in those companies, which

specialized in the production of commodities. This accounted for the indirect

investments in commodity assets.

About MOCBPL Unique Experience

Motilal Oswal Commodities Broker Pvt. Ltd. (MOCBPL) is a fully owned

subsidiary of Motilal Oswal Financial Services Ltd. and has been providing

commodity trading facilities and related products and services on MCX and NCDEX.

Besides access to the best of research in the form of Daily Fundamentals &

Technical Reports on highly traded commodities, our clients also get access to our

exclusive Customized Trading Advice on both the trading platforms.

Solid Research:  Client at MOCBPL gets access to the best of research

in the form of Daily Fundamental and Technical Research Reports on

highly traded commodities.

One Stop Shop:  MOCBPL provides end-to-end advice for all the

commodities to all our prestigious individual investors. Privileged

customers also get exclusive & customized advice.

Dual Membership:  MOCBPL has membership to MCX and NCDEX

exchanges which gives the clients to take advantage of the dual exchange

trading facility provided by us.

Personalized Service:  We provide personalized service through

dedicated relationship managers for quick and efficient execution of

transactions and for regular follow ups.  

2.2.6.MUTUAL FUNDS

Investments can seem complicated and mystical. Since all the traditional

investment avenues like bank deposits, RBI Bonds, NSC, KVP etc are becoming

unattractive with the interest rate falling continuously, one needs to look for other

investments alternatives. Mutual funds offer the ideal platform to participate in the Equity

& Debt market indirectly through professional management.

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Mutual funds are becoming the most popular investment vehicles offering various

kinds of schemes with different investment objectives. Investments through Mutual

funds are one of the safest, easiest and convenient ways of making successful

investments. The investments are in congruence to the laid down investment objectives

securing the goals & objectives of the unit holders.

At Motilal Oswal Securities Ltd, we understand the importance of financial goals

of our privileged clients and provide you comprehensive solutions to all your financial

needs. Through our tailor made portfolios, we serve your needs better and help you

make informed investment decisions. Our dedicated Mutual fund desk gives you Solid

advice backed services thus giving you the edge that you always wanted.

Services Offered

Need based advisory, fully backed with solid research.

Dedicated  Mutual  fund  advisors to understand your needs and help

you ild a tailor made portfolio.

Monthly review of portfolios.

Monthly Fact-sheet covering our analysis of various funds.

Knowledge sharing through educational seminars and workshops

2.2.7. IPO

Book Building and Fixed Price Issue are the two types of Initial Public Offerings 

(IPOs)  through which a public company can raise money in the capital market.

In a book building public issue the bids are received at different price  levels  and 

the  demand for  the  issue  is built up over a period of time. Depending upon

the bids received  at different price  levels  the  issue  price  is  ascertained.  In  a  fixed 

price issue  the issue price is pre ascertained by the issuer.

There are two types of IPOs

“Book Building” means a process undertaken by which a demand for the

securities proposed to be issued by a body corporate is elicit and built up and the price

of the security is assessed  on the basis of the bids obtained for the quantum of 

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securities  offered  for  subscription  by  the issuer. This method provides an opportunity

to the market to discover the price for securities.

In case of a fixed price issue the issue price is fixed.

ONLINE IPO

MOSL facilitates the IPO application for all of its clients through online platform.

Using the Online IPO service, an existing can apply for the IPO using the weblink

www.onlinetrade.motilaloswal.com.

BENEFITS

MOSL has the best of both the worlds for IPO.  It has on of the distribution

network of outlets. Once the shares are allotted they can be sold at the same outlet.

At the same time MOSL has a very convenient online trading platform through

which you can invest in IPOs in three easy steps.

Why IPOs at MOSL?

Easy access to our Business locations with over 1289 Business locations

spread across over 548 cities.

Research and advice on new issues.

Regular updates on ongoing and forthcoming issues to investors.

2.2.8.DEPOSITORY

“MODES”- Motilal Oswal Depository Services In the times of T+2 having a de-

mat account linked to your trading account becomes really convenient. The non-trading

clients can also avail of MODES.

Today MODES is available at all business locations of Motilal Oswal. In terms of

number of accounts MODES is the second biggest Depository Participant in CDSL with

over 150,000 accounts. The trust they have in Motilal Oswal is reflected by their

cumulative holding in MODES worth over Rs. 3400 crores.

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Holder of a MODES account receives regular account reports and an efficient

service at all times. Clients having holdings over Rs. 10 lac receive special SMS service.

They get recommendations on their holdings based on Motilal Oswal Research rated

the "Most Independent Research - Local Brokerage" by Asia Money Brokers Poll 2006.

Benefits

As an investor you will enjoy many benefits if you buy and sell shares in the

depository mode. The following are some of the benefits you will enjoy:

No bad deliveries

No risk of loss, mutilation or theft of share certificates

No stamp duty for transfer of shares

Reduced paper work

Fast settlement cycles

Low margin on securities pledged with banks

Increase in liquidity of your securities because of faster transfer and istration

of securities in your account

Instant disbursement of non-cash benefits like bonus and rights into your

account. 

Regular account status updates available from MODES at any point of time.

2.2.9.LOAN AGAINST SHARES

Loan Against Securities (LAS) is getting instant liquidity from your investment

without selling them. All you have to do is pledge your securities in favour of Motilal

Oswal Financial Services Limited (MOFSL). This enables you to enjoy all corporate

benefits accrued on your securities and still avail loan against them. No EMI or

prepayment charges applicable. Interest will be charged only on the actual amount and

that too for the time it is utilized.

Process

Account Opening

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We at MOFSL understand your needs and help you meet your liquidity

requirements.

As an Individual or Corporates, you can avail LAS in 3 simple steps:

Open a Trading and Demat account with Trading Member and

depository Participant.

Sign Master Loan Agreement with MOFSL.

Open Bank Account with a designated bank.

Borrowing limit based on your Financials

  10 times of latest Income Tax Return.

One time of your net worth as certified by a CA.

Understanding your investing eligibility and funds available can get

complicated, so we at MOFSL will calculate your eligibility for you. This

information can be accessed any time through your separate web login.

  Benefits of LAS with MOFSL

Exhaustive list of approved securities.

Loan go up to 75% of securities amount.

Pay interest only on the amount outstanding and only for the time used.

Interest is calculated on the daily outstanding balance and debited to your

account at the end of every month.

Can also be availed against open ended mutual fund schemes.

Enjoy all corporate benefits like bonus, dividends etc accrued on your

securities.

2.2.10. ASSET MANAGEMENT:

Portfolio Management Services (PMS) Our team of portfolio managers design

portfolios to suit every customer’s needs. Constantly scrutinizing the developments in

market and moving stocks, we aim for maximum capitalization.

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We suggest the most appropriate product to customers, based on factors like

their investment spheres, return expectation and risk tolerance. Our experience,

expertise and research helps us give our customer’s investments the best upshots.

2.2.11. PRIVATE EQUITY

Motilal Oswal Private Equity Advisors Private Limited (“MOPEAPL”) is the private

equity arm of Motilal Oswal Financial Services Limited (“MOFSL”). Started in 2006, it has

quickly emerged as one of the most active private equity funds in the country with the

primary investment objective of achieving long-term capital appreciation by providing

financial, strategic and operational assistance to emerging companies in the Mid Market

(“MMEs”) space and Real Estate sector.

� Currently manages and advices two funds:

India Business Excellence Fund India Business Excellence Fund [“IBEF”] is a

sector agnostic fund with a corpus of INR 5.5 bln (US$125 mln) from both Indian and

Overseas investors. IBEF makes investments in Indian MMEs looking for growth

capital and has made eight investments since its inception in January 2007 in

companies across various industries.

� Key features of the fund are:

The fund can invest at the early stage of land acquisition giving it a

competitive edge

Flexibility of investments in terms of size, timing, method and partnering

with midsized developers will provide easier entry and exit strategies

Diversified portfolio of assets spanning across geography, asset class and

type providing lower risk and higher returns

Focused on residential and commercial projects, opportunistic investments

in retail and other assets with a moderate timeframe for completion

Focus on top 15 urban agglomerations due to high growth in urbanization

Fund large-midsized regional developers looking for equity partnership

and also large size developers having fund requirements for land

acquisitions

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2.2.12. INVESTMENT BANKING

Motilal Oswal Investment Advisors Private Limited (MOIAPL) Founded in June

2006, MOIAPL offers comprehensive Investment Banking solutions and transaction

expertise covering private placement of equity, debt and convertible instruments

covering international & domestic capital markets, mergers & acquisitions advisory and

restructuring advisory & implementations.

The team comprises of multi-disciplinary professionals with extensive collective

banking and corporate finance advisory experience. An in-depth understanding of

different sectors within the Investment Banking team underpinned by the two decade old

research strength of the group company, Motilal Oswal Securities Limited enables us to

provide customized financial solutions to our clients across industries.

To pursue our mission, the team inculcates the following values with utmost

sincerity:

Integrity: We honour our commitments and work on transactions keeping in mind

the long term interests of the clients.

Client Orientation: We start with gaining a thorough understanding of the client’s

needs and then offer solutions keeping in mind the priorities and suitability to

them.

Knowledge based solution offering: Our quest for offering the optimum

solutions is supported by the knowledge and research on the underlying business

and products, resulting in high quality financial and strategic advice.

Quality: Our endeavour to follow the best global service standards and

processes resulting in outstanding execution support for the transactions.

Passion: We are passionate about our work. This results in innovative solutions

and greatly enhances the probability of transaction closures.

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Offerings:

 

 Domestic Capital Markets

We are a Category-I Merchant Banker registered with the Securities and Exchange

Board of India (SEBI) authorizing the company to manage, advice and underwrite

domestic capital market issues. We have expertise in Initial Public Offerings, Qualified

Institution Placements, Follow-On Public Offerings, Rights Issues, Open Offers and

Buy Backs. 29

EktronJS,EktronW

� International Capital Markets

We work with Indian Corporates to tap overseas investors through listing an FCCB

or GDR issue on a reputed international stock exchange. We have placed FCCBs with

overseas investors leveraging our strong relationships with overseas process agents,

international lawyers and listing agents

� Private Equity Syndication

We leverage our extensive network of relationships with Private Equity Funds to

raise growth capital for our clients to fund their expansion strategies.

� Structured Finance Syndication

We have built a strong reputation for advising and executing complex Structured

Finance transactions. Implementation of a structured finance solution allows corporate

clients to postpone or limit equity raising thereby leading to lower dilution.

� Mergers and Acquisitions Advisory

We focus on providing solutions and support in implementing strategic decisions of

our clients on target evaluation, acquisition, strategic alliances, divestitures,

restructuring, de-mergers, privatization and mitigation of potential takeover threats.

We are active on both buy-side and sell-side mandates leveraging our industry

knowledge, deep relationships and extensive experience in facilitating and financing

acquisitions.

� Financial Restructuring Advisory

We specialize in helping companies come out of financial distress. We work with

our clients in all aspects of the transaction including structuring, valuation,

negotiations for most optimal settlement and fund raising to facilitate implementation

of the proposed solution.

� Real Estate Advisory

We assist firms in raising funds for real estate construction / development projects

at the ‘holding entity’ level as well at the ‘project SPV’ level. We work with our clients 30

through all stages of the transaction from developing a nuanced understanding the

client’s cash flow requirements to capital structuring of the transaction, evaluating of

various funding raising options and execution of the transaction up to assisting in

documentation, regulatory clearances and eventual funding.

2.2.13. WEALTH MANAGEMENT

At Motilal Oswal it has been our constant endeavour to go beyond traditional

services and provide customized value. That's the reason we have devised a holistic

approach to Wealth Management.

We believe the Wealth Management needs are varied. For some they may lie in

personal Wealth Management, while for others it may extend to business requirements.

To cater to such diverse needs, we have launched a Wealth Management service called

Purple.

At Purple, your dedicated Purple Wealth Partner will provide customised

advice to take care of both your personal and business wealth management needs.31

2.3. MOTILAL OSWAL SECURITIES LIMITED’S STRENGTHS

Analytical advisory

Professional knowledge

Brand affiliation

Well Trained.

Good Investor Base.

Highly Determined.

Well Established Network.32

Exclusive Concept.

Diversified Operations Team.

2.4. Motilal Oswal Securities Limited ’s Superior Technology and

Robust Risk Management Tools

We recognize the need to have a sophisticated technology network in place to

meet our customer needs as well as to

� Effective use of Technology

Our IT infrastructure includes a world class data centre, offline and online

trading platforms with 99.8% planned uptime and a cost effective

combination of VSAT, leased lines, VPN and other modes to provide

superior connectivity to our wide spread business network.

Over 8500 terminals are managed through this network across various

equity & commodity

Dedicated data center at Malad, Mumbai with 28,500 sq ft area

� Robust risk management system

Monitor and control risk exposure through a variety of separate but

complementary financial, credit, operational, compliance and legal reporting

systems

Real-Time Risk Management - Gives users information on clients’ open

positions

Risk management department analyses this data in conjunction with our

risk management policies and takes appropriate action where necessary to

minimise risk.

2.5. Motilal Oswal Securities Limited Core Purpose And Values

� Core Purpose: 33

To be a well respected and preferred global financial services organization

enabling wealth creation for all our customers.

� Values:

Integrity A Company honouring commitment with highest

ethical and business practices.

Teamwork Attaining goals collectively and collaboratively.

Meritocracy Performance gets differentiated, recognized and

rewarded in an apolitical

Passion & Attitude High energy and self motivated with a “Do It”

attitude and entrepreneurial spirit.

Excellence in Execution Time bound results within the framework of the

company ’s value system.

2.6. Motilal Oswal Securities Limited’s Pillars: Management Team

Motilal Oswal Trustee, Chairman & Managing Director

Oswal is an associate director and is the Chairman of the Board of Motilal

Oswal Trustee Company Limited. He is also Managing Director of Motilal Oswal

Financial Services Ltd. He has varied experience of over 2 decades in the financial

service sector. Mr. Oswal has served on the governing board of the Bombay Stock

Exchange (BSE) as a Director. He has also been member of the National Stock

Exchange (NSE) committee for F&O and a member of the Managing Committee of

Indian Merchants' Chamber (IMC).

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He is a board member and a Director of Jain International Trade Organisation

(JITO). He is also a Director on the Board of various Companies.

Mr. Oswal has received the "Rashtriya Samman Patra" awarded by the

Government of India for being amongst the highest Income Tax payers in the country

for a period of 5 years from FY95–FY99.

The Indian Council of Management Executives (ICME) has awarded the

‘Knight of the Millennium’ to Mr. Oswal for the Capital Market.

BOARD OF DIRECTORS

Mr. Motilal Oswal

Chairman and Managing Director,

Chief Executive Officer and Chief Financial Officer

Mr. Raamdeo Agrawal

Joint Managing Director

Mr. Navin Agarwal

Director

Mr. Ramesh Agarwal

Independent Director

Mr. Balkumar Agarwal

Independent Director

Mr. Madhav Bhatkuly

Independent Director

Company Secretary and Compliance Officer

� Mr. Samrat Sanyal

Bankers

� Citibank N.A.

� HDFC Bank

� Standard Chartered Bank

Auditors

� M/s Haribhakti & Co., Chartered Accountants

2.7. Motilal Oswal Securities Limited’s Vision & Mission

� VISION:

35

To enhance our customers the financial Security by creating wealth.

To be one of the most trusted and globally reputed financial distribution

companies. 

To Become No-1 In India Through Fair Practices & Keep Maintain This

Position Forever.

Be a world class financial service provider, value based wealth creation to my

clients & become a well reputed organization

� MISSION:

To provide the customers the financial freedom by enhancing Wealth

Management.

Truly Value Based Wealth Creation Of Every Customer With Disciplined,

Integrated & Customize Services Way.

Expand business both in the value, volume wise make it no 1 in its segment

2.8. Motilal Oswal Securities Limited’s growth:

� BROKING AND DISTRIBUTION

Distribution expands to 1397 business locations across 584 cities

More than 6,00,000 registered customers

Depository assets at over Rs. 113 billion

India’s largest dealing room (over 26,000 sq feet)

Over 100 investment education seminars conducted

� ASSET MANAGEMENT

Portfolio Management Services AUM of Rs. 9.8 billion

Approval received from SEBI for starting Mutual Fund business

First scheme offer document filed with SEBI for approval

� WEALTH MANAGEMENT

AUM of Rs. 8 billion

Presence in Mumbai, Kolkata, Pune and Ahmedabad

Unique Wealth Management offering (Purple) based on financial

profiling and client need analysis

� INVESTMENT BANKING

66 deals in 4 years across the product spectrum and sectors

Cumulative revenues since inception : over Rs. 2 billion36

Facilitated periodic thematic conclaves between corporate and

investors

� PRIVATE EQUITY

India Business Excellence Fund (US$ 125 million)

over 61% invested across 10 transactions

India Realty Excellence Fund closed at INR 1.64 billion

� INSTITUTIONAL EQUITIES

Over 300 institutional clients, including 200 FIIs.

Research covering 236 companies in 27 sectors and 23

commodities

Research received 10 awards in the ET- Starmine Analyst Awards

2009 including Best Broker

� FUND-BASED BUSINESSES

Margin funding book of Rs.1.6 billion

Principal Strategies Group in place to optimise treasury yields

2.9. Motilal Oswal Securities Limited Depatments

2.9.1.TRADING DEPARTMENT

Motilal Oswal is one of the broker who is acting as wholesalers and as a

broker, it is the duty of it to provide service of collecting funds and securities from the

investors and send it to clearing house and vice versa. According to SEBI investor has

to open trading account for trading in shares. Client can open an account in any

depository.

Trading department is divided into three parts:

Pre-trading (A/c opening, Deposits, ect.)

Trading (Dealing room, Sauda punching, conformation)

Post-trading (Payout process, Bills, Pay-in-process, Contract

note)

2.9.2.MARKETING DEPARTMENT

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The main aim of marketing activities at Motilal oswal is that the customer should

get enough guidance to join the company and how he can get the best service than any

other stockbroker. This year MOFSL introduced a new brand philosophy. The relentless

focus on research and insight, which is the DNA of the company, has manifested itself in

the brand idea - ‘Knowledge First’. This simple philosophy of 'Knowledge First' has been

brought alive through a multimedia campaign in TV, print, outdoor and the web.

2.9.3.HUMAN RESOURCE DEPARTMENT

MOFSL has grown at a scorching pace, not only in terms of business but also in

terms of its most valuable asset -people. They have an ever-growing employee strength

of 2315 associates that operates out of a rapidly expanding Company network.

HR at Motilal Oswal, on the one hand strives to make every employee of the

organization its brand ambassador and on the other hand make the Motilal Oswal brand

stand for the best people practices.

The 3 pillars of HR strategy are:

A clear and relentless (persistent) focus on leadership development

Stringent (severe) focus on the identification and development of 'High

Potentials' at all levels

Investment in technology to deliver state-of-the-art HR processes across

the organization in a time and cost efficient manner

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2.10. MOTILAL OSWAL SECURITIES LIMI TED RESEARCH DESK

Motilal Oswal Securities Limited Research desk has a dedicated team of

research analysts and experts that have an in-depth knowledge of the market place.

They offer value perspectives, focus on opportunities for investment and growth and

endeavor to reduce risk potential. It's premium advisory services are based on technical

and fundamental views and strategies. 

Research is the solid foundation on which Motilal Oswal Securities  advice is

based. Almost 10% of revenue is invested on equity research and we hire and train the

best resources to become advisors. At present we have a expert team of Research

Analysts researching over 27 sectors and 24 commodities. From a fundamental,

technical and derivatives research  perspective; Motilal Oswal's research reports have

received wide coverage in the media (over a 1000 mentions last year). Our consistent

efforts towards quality equity research has reflected in an increase in the ratings and

rankings across various categories in the Asia Money Brokers Poll over the years.

Our unique Wealth Creation Study, authored by Mr. Raamdeo Agrawal, Jt.

Managing Director, is now in its 15th year. Investors keenly await this annual study for

the wealth of information it has on the companies that created wealth during the

preceding five years.

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2.11. Motilal Oswal Securities Limited’s Achievemen t:

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2.12. MARKET  

2.12.1. The capital market

The capital market is the market for securities, where the companies and

government can raise long term funds. It is a marketing which money is lent for periods

longer than a year. The capital market includes the stock market and bond market. The

capital market consists of primary and secondary markets.

Primary market:

The primary market deal with the issue of new instruments by the corporate

sector such as equity shares, preference shares and debt instruments. Central and

State Government, various public sector industrial units, statutory and other

authorities such as state electricity boards and port trusts also issue bonds/debt

instruments.

The primary market in which public issue of securities is made through a

prospectus is a retail market and there is no physical location. Offer for subscription

to securities is made to investing community.

Secondary Market:

The secondary market or stock exchange is a market for trading and

settlement of securities that have already been issued. The secondary market

consists of 22 stock exchanges. The secondary market provides a trading place for

the securities already issued to be bought and sold. It also provides liquidity to the

initial buyers in the primary market to re-offer the securities to any interested buyers

at any price, if mutually accepted.

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2.13. Analysis of Investment and Securities Market

2.13.1. Securities and Exchange Board of India

SEBI is the Regulator for the Securities Market in India. Originally set up by

the Government of India in 1988, it acquired statutory form in 1992 with SEBI Act

1992 being passed by the Indian Parliament. Chaired by C B Bhave, SEBI is

headquartered in the popular business district of Bandra-Kurla complex in Mumbai,

and has Northern, Eastern, Southern and Western regional offices in New Delhi,

Kolkata, Chennai and Ahmedabad

SEBI has to be responsive to the needs of three groups, which constitute the

market:

the issuers of securities

the investors

The market intermediaries.

SEBI has three functions rolled into one body quasi-legislative, quasi-judicial

and quasi-executive. It drafts regulations in its legislative capacity, it conducts

investigation and enforcement action in its executive function and it passes rulings

and orders in its judicial capacity. Though this makes it very powerful, there is an

appeals process to create accountability. There is a Securities Appellate Tribunal

which is a three member tribunal and is presently headed by a former Chief Justice

of a High court - Mr. Justice NK Sodhi. A second appeal lies directly to the Supreme

Court.

SEBI has enjoyed success as a regulator by pushing systemic reforms

aggressively and successively (e.g. the quick movement towards making the

markets electronic and paperless rolling settlement on T+2 basis). SEBI has been

active in setting up the regulations as required under law.

With the objective of improving market efficiency, enhancing transparency,

checking unfair trade practices and bringing the Indian market up to international

standards, a package of reforms consisting of measures to liberalize, regulate and

develop the securities market was introduced during the 1990s. This has changed

corporate securities market beyond recognition in this decade.44

2.13.2. National Stock Exchange

The National Stock Exchange commenced its operations in 1947 as a first

step in reforming the securities market the exchange.

Before the NSE was set up trading on the stock exchange 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.

The practice of physical trading imposed limits on trading volumes as well as,

the speed with which new information was incorporated in to prices. To obviate this,

the NSE introduced screen-based trading system where a member can punch into

the computer the quantities of shares and the prices at which he wants to transact.

The transaction is executed as soon as the quote punched by a trading member

finds a matching sale or buys quote from counterparty.

2.13.3. Bombay Stock Exchange:

BSC Sensex or Bombay Stock Exchange Sensitive index is a value-weighted

index composed of 30 stocks started in 01 of Jan, 1986. it consist of the 30 largest

and most actively traded stock , representative of various sectors, on the Bombay

stock exchange .these companies account for around one-fifth of market

capitalization of the BSE. The base value of the sensex is 100 on April 1, 1979, and

the base year of BSE-SENSEX is 1978-79.

At irregular intervals, the Bombay stock exchange (BSE) authorities review

and modify its composition to make sure it reflect  current market conditions. The

index is calculated based on free float capitalization method; a variation of the

market cap method. Instead of using a company’s outstanding share it uses its float,

or share that are readily available for trading. The free float method, therefore, dose

not includes restricted stocks, such as those held by company insiders.

2.13.4. Equities: -

What is Equity: - Funds brought in to a business by shareholders is called equity. It

is a measure of a stake of a person or group of persons starting a business.

45

What does investing in equity mean: - When you buy a company’s equity, you are

in effect financing it, and being compensated with a stake in the business. You

become part-owner of the company, entitled to dividends and other benefits that the

company may announce, but without any guarantee of a return on your investments.

Fundamental analysis: - The analysis of factual information like financial figures,

balance sheet, and other information publicly available is known as fundamental

analysis. This information is used to derive a fair price of the share of the share of

the company. The faithful fundamentalists believe that the market incorporates all

facts relating to the financial performance of the company.

Technical Analysis: - Technical analysis is the study of historic price movements of

securities and trading volumes.

Technical analysis believes that prices of the securities are determined largely

by forces of demand and supply. Share prices move in patterns which are easily

identifiable. Crucial insights in to these patterns can be obtained by keeping track of

price charts, leading to predictions that a stock price may move up to down. The

belief is that by knowing the past, future prices can predict.

Settlement cycle: - The accounting period for the securities traded on the

Exchange. On the NSE, the cycle beings 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 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

settled in 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.

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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.

Deliver the shares and pay the money to broker: - As a seller, in order to ensures

smooth settlement you should deliver the shares to your broker immediately after

getting the contract note for sale but in any case before the pay-in day. Similarly, as

a buyer, one should pay immediately on the receipt of the contract note for purchase

but in any case before the pay-in day.

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 take the risk that they will be able to buy the stock at

a more favourable price 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 delivering up-rectified company objection. 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, 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 percent 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.

Hawala Rate: - Hawala rate is a making-up price at which buyers and sellers settle

their speculative transaction at the end of the settlement. It is the basis for buy and

sells for the investor opting for carry forward during the next settlement. This price is

fixed by taking the weighted average of trades in the last half-an-hour of trading on

the settlement day for securities in the carry forward list, also knows as the “A” group

or specified group.47

This price is significant because for a speculative buyer or a seller, the

Hawala rate is the standard rate for settling his trade and for carrying forward

business to the next settlement. For example, an investor buys the stock of x

company at Rs.100 on Monday. By Friday (BSE settlement day), if Rs. 90 is the

weighted average price in the last half-an-hour, the buyer would have to carry

forward his trade at this price of Rs. 90. He then settles at Rs. 90 and enters in to a

contract at Rs. 90 plus BLESS charges for the next settlement.

Normally, Stock Exchange does not interfere with the Hawala rates. However,

there are instances, when rates have been changed to ensure safety of the markets.

This is so because in case the market witnesses a sharp fall during a settlement, the

chances of a broker default are extremely high. This is when the exchange

administration steps in and raises the Hawala rate to avert any possible default.

Book-closure and record date: - When shares of a joint stock company invariably

change hands during market trades, identifying the owner of some shares becomes

difficult. So it is difficult to pass on certain benefits (like share bonus issue, splits and

dividend payments) to shareholders.

So, when a joint stock company declares dividends or bonus issues, there

has to be a cut-off date for such benefits to be transferred to the shareholders. This

date is termed as "Book Closure" date or "Record Date". It is the date after which the

company will not handle any transfer of shares requests until the benefits are

transferred. Only shareholders marked in the company's register at the Book Closure

Date or the Record Date would be entitled to receive these benefits. If a company

announces book closure as 1 January, shareholders who as on that day own the

stock will be entitled to the dividend/bonus/split benefit. e.g. If Mr. Y buys this stock

from Mr. X on 2 January, the benefit of bonus issue or splits or dividend will still be

transferred to Mr. X by the company.

A company generally announces such a date along with the announcement of

the bonus issue or splits or dividend announcement, as the case may be.

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In an efficient market as per the efficient-market hypothesis (EMH) the effect

of the price change due to bonus issue or splits or dividend as on the Book Closure

date gets adjusted in the price of the stock in the market effective with the opening of

the trade floor on the book closure date

2.14. Commodity Market

India has a long history of futures trading extending over 125 year , while gold

and silver were widely trade commodities in the 19 century , other Agro product like

chana , urad , sugar wheat etc; were only added recently in most market.

The bull run in commodity markets coupled with the setting up of national

level commodity exchanges in India and has lead to a large scale improvement in

transportation , warehousing and financing etc; placing India internationally in

commodities markets.

Commodity future perform an important role of price discovery and risk

management, which is beneficial for all the section of society i.e. producer, trader

and consumer etc.

Globally volumes on commodity future market are about five times of equity

market. Some of major commodities exchange is Chicago Board of Trade (CBOT),

New York Mercantile Exchange (NYMEX), London Metal Exchange (LME), Tokyo

Commodity Exchange (TOCOM), and Bursa Malaysia (KLSE).

2.14.1. MCX:

Multi Commodity Exchange (MCX) is an independent commodity exchange

based in India. It was established in 2003 and is based in Mumbai. The turnover of the

exchange for the period Apr-Dec 2008 was INR 32 Trillion. MCX offers futures trading in

Agricultural Commodities, Bullion, Ferrous & Non-ferrous metals, Pulses, Oils &

Oilseeds, Energy, Plantations, Spices and other soft commodities.

MCX has also setup in joint venture the National Spot Exchange a purely

agricultural commodity exchange and National Bulk Handling Corporation (NBHC) which

provides bulk storage and handling of agricultural products.

49

It is now regulated by forward market commission.

MCX is India's No. 1 commodity exchange with 84% Market share in 2008($0.84

trillion)

The exchange's competitor is National Commodity & Derivatives Exchange Ltd

Globally, MCX ranks no. 1 in silver, no. 2 in natural gas, no. 3 in crude oil and

gold in futures trading

The crude volume touched 23.49 Million barrels on January 3, 2009

The highest traded item is gold with an average monthly turnover of Rs 1.42

Trillion ($29 Billion).

MCX has 10 strategic alliances with leading commodity exchange across the

globe

The average daily turnover of MCX is about US$ 2.4 billion

MCX now reaches out to about 500 cities in India with the help of about 10,000

trading terminals

2.14.2. NCDEX:

NCDEX is the only commodity exchange in the country promoted by national

level institutions. This unique parentage enables it to offer a bouquet of benefits, which

are currently in short supply in the commodity markets. The institutional promoters and

shareholders of NCDEX are prominent players in their respective fields and bring with

them institutional building experience, trust, nationwide reach, technology and risk

management skills.

NCDEX is a public limited company incorporated on April 23, 2003 under the

Companies Act, 1956. It obtained its Certificate for Commencement of Business on May

9, 2003. It commenced its operations on December 15, 2003.

NCDEX is a nation-level, technology driven de-mutualised on-line commodity

exchange with an independent Board of Directors and professional management - both

not having any vested interest in commodity markets. It is committed to provide a world-

class commodity exchange platform for market participants to trade in a wide spectrum

of commodity derivatives driven by best global practices, professionalism and

transparency.

50

NCDEX currently facilitates trading of 57 commodities –

Agriculture-

Barley, Cashew, Castor Seed, Chana, Chili, Coffee - Arabica, Coffee - Robusta,

Crude Palm Oil, Cotton Seed Oilcake, Expeller Mustard Oil, Groundnut (in shell),

Groundnut Expeller Oil, Guar gum, Guar Seeds, Gur, Jeera, Jute sacking bags,

Indian Parboiled Rice, Indian Pusa Basmati Rice, Indian Traditional Basmati Rice,

Indian Raw Rice, Indian 28.5 mm Cotton, Indian 31 mm Cotton, Masoor Grain Bold,

Medium Staple Cotton, Mentha Oil, Mulberry Green Cocoons, Mulberry Raw Silk,

Mustard Seed, Pepper, Potato, Raw Jute, Rapeseed-Mustard Seed Oilcake, RBD

Palmolein, Refined Soy Oil, Rubber, Sesame Seeds, Soybeans, Sugar, Yellow

Soybean Meal, Tur, Turmeric, Urad, V-797 Kapas, Wheat, Yellow Peas, Yellow Red

Maize.

Metal’s-

Aluminium, Ingot, Electrolytic Copper Cathode, Gold, Mild Steel Ingots, Nickel

Cathode, Silver, Sponge Iron, Zinc Ingot.

Energy-

Brent Crude Oil, Furnace Oil.

At subsequent phases trading in more commodities would be facilitated.  

2.15. Currency Market

The foreign exchange market (currency, Forex, or FX) is where currency trading

takes place. It is where banks and other official institutions facilitate the buying and

selling of foreign currencies. FX transactions typically involve one party purchasing a

quantity of one currency in exchange for paying a quantity of another.

51

The foreign exchange market that we see today started evolving during the

1970s when world over countries gradually switched to floating exchange rate from their

erstwhile exchange rate regime, which remained fixed as per the Bretton Woods system

until 1971.

Presently, the FX market is one of the largest and most liquid financial markets in

the world, and includes trading between large banks, central banks, currency

speculators, corporations, governments, and other financial institutions. The average

daily volume in the global foreign exchange and related markets is continuously

growing. Traditional daily turnover was reported to be over US$3.2 trillion in April 2007

by the Bank for International Settlements.Since then, the market has continued to grow.

According to Euro money’s annual FX Poll, volumes grew a further 41% between 2007

and 2008.

The purpose of FX market is to facilitate trade and investment. The need for a

foreign exchange market arises because of the presence of multifarious international

currencies such as US Dollars, Euros, Japanese yen, Pounds Sterling, etc., and the

need for trading in such currencies.

2.16. Derivatives

The emergence of the market for derivative products, most notably forwards,

futures and options, can be traced back to the willingness of risk adverse economic

agent to guard themselves against uncertainties arising of fluctuations in assets prices.

By there very nature, the financial markets are marked by a very high degree of

volatility. Through the use of derivative product, it is possible to partially or fully transfer

price risks by locking in assets price .as instruments of risk management; these

generally do not influence the fluctuation in the underlying asset prices. However, by

locking in asset prices, derivative products minimize the impact of fluctuation in asset

prices on the profitability and cash flow situation of risk adverse investors.

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Derivative Products:

Derivative contracts have several variants. The most common variants are

forwards, futures, options, and swaps. Take a brief look at various derivative contracts

that have come to be used.

Forward: A forward contact is a customized contract between two entities, where

settlement takes place on a specific date in the future at today’s pre-agreed price.

Future: A future contract is an agreement between two parties to buy or sell an

asset at a certain time in the future at a certain price. Future contracts are special

type of forward contracting the sense that the former are standardized exchange

traded contracts.

Option: Option is two types – calls and puts. Calls given the buyer the right but

not the obligation to buy a given quantity of the underlying asset, at a given price

on or before a given future date .puts give the buyer the right, but not the

obligation to sell a given quantity of the underlying asset at a given price on or

before a given date.

Warrants: Option generally have lives of up to one year. Majority of the option

traded on options exchanges having a maximum maturity of nine months. Longer-

dated options are called warrants and are generally traded over the counter.

Leaps: The acronym leaps means long-term equity anticipation securities .these

are options having a maturity of up to three years.

Baskets: Baskets option is option on portfolio of underlying assets. The

underlying asset is usually a moving average of a basket of asset .equity index

options are a form of basket option.

Swaps: Swaps are private agreement between two parties to exchange cash

flows in the future according to pre arranged formula. They can be regarded as

portfolios of forward contracts. The two commodity use swaps are:

Swaptions: Swaptions are option to buy or sell a swap that will become operative

at the expiry of the option .thus a swaption is an option on a forward swap. Rather

than have calls and puts, the swaption market has receiver swaptions and payer

swaption. A receiver swaption is an option to receive fixed and pay floating. a

payer swaption is an option to pay fixed and receive floating.

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2.17. The Depository system

The principal function of a depository is to dematerialize securities and enable

their transaction in book-entry form. The securities are transferred by debiting the

transferor’s depository account and crediting the transferee’s depository account.

2.17.1. Functions of Depository

Dematerialization: one of the primary functions of depository is to eliminate or

minimize the movement of physical securities in the market. This is achieved through

dematerialization of securities. Dematerialization is the process of converting

securities held in physical form into holdings in book entry form.

Account transfer: the depository gives effects to all transfers resulting from the

settlement of trades and other transactions between various beneficial owners by

recording entries in the accounts of such beneficial owners.

Transfer and Registration: A transfer is the legal change of ownership of a security

in the records of the issuer. For affecting a transfer, certain legal steps have to be

taken like endorsement, execution of a transfer instrument and payment of stamp

duty.

Core Services of Demat Account

3-IN-1 ACCOUNT

Accounting Opening: Any investor who wishes to avail depository services must

first open an account with a depository participant of NSDL. The process of opening

a demat account is very similar to a bank account. The investor can open an account

with any depository participant of NSDL. An investor may open an account with

several DPs or he may open several accounts with a single DP is free to fix its own

fee structure. Investors have the freedom to choose a DP based on criteria like

convenience, comfort, service levels, safety, reputation and charges. After exercising

this choice, the investor has to enter into an agreement with the DP the form and

contents of this agreement are specified by the Business Rules of NSDL. In this

chapter we deal with the procedure for account opening under the NSDL system.

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2.17.2. TYPES OF ACCOUNTS:

Type of depository account depends on the operations to be performed.

There are three types of demat accounts which can be opened with a depository

participant viz. (a) Beneficiary Account (b) Clearing Member Account and (c)

Intermediary  Account.

2.17.2.1. Beneficiary Accounts

This is an account opened by investors to hold their securities in

dematerialized form with a depository and to carry out the transaction of sale and

purchase of such securities in book-entry form through the depository system. A

beneficiary account holder is legally entitled for all rights and liabilities attached to

the securities (i.e. equity shares, debentures, government securities, etc.) held in

that accounts. Therefore, the account is called “beneficial owner account”.

Documents for Verification

1. Non-body Corporate Investors: For the purpose of verification, all mom-body

corporate investors have to submit the following documents, as prescribed by

SEBI, along with the stipulated account opening form.

A beneficiary account must be opened only after obtaining a proof of identity

and address of the applicant. An authorized official of the participant should verify

the photocopies of any of following documents submitted with their corresponding

originals and put his/her signature on them with remarks “verified with original”

proceeding to open the account.

A) Proof of Identity (POI)

Passport

Voter ID Card

PAN card with photograph

MAPIN card

Identity card/document with applicant’s Photo, issued by

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� Central/State Government  and its Departments

� Statutory/Regulatory Authorities

� Public Sector Undertakings,

� Scheduled Commercial Banks,

� Public Financial Institutions,

� College affiliated to Universities (this can be treated as valid only

till the time applicant is a students),

� Professional Bodies such as ICAI, ICWAI, Bar Council etc. to

their Members

� Credit cards/Debit cards issued by Banks.

B) Proof of address (POA)

Ration card

Passport

Voter ID card

Driving License

Bank Passbook

Verified Copies of

� Electricity Bills (not more than two month old)

� Telephone Bills (not more than two month old)

� Leave and License Agreement / Agreement for sale.

Self –declaration by High court & Supreme Court Judges, giving the

new address in respect of their own accounts.

2. For Corporate Investor: For the purpose of verification, all corporate investors

have to submit the following documents as prescribes by SEBI along with the

stipulated account opening form.

1. Memorandum & Articles of Association (MOA & AOA) Board resolution for

opening demat account and the list of authorized signatories along with their

specimen signatures and photographs

2. Introduction by an existing account holder of by the applicant’s bank.

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3. Proof of address of the corporate, evidenced by the document registered

with Registrar of companies or acknowledged copy of income tax return or

Bank Statement or Leave and License Agreement/Agreement for sale.

An authorized official of the participant shall verify the proof of address with

the original documents and affix his/her signature on the documents submitted by

the Client, while exercising such due diligence.

Common Information

The processes of opening an account with a depository, nature of such an

account, and various factors to be considered for opening a depository account are

explained below. Some details are common to all types of account. These are:

Name of the holder

Date of Birth (for individual account)

Occupation

Address & phone number

Bank details like name of bank, type of account (current/savings)

account number, branch address, MICR etc.

PAN number

Details of nomination (for individual account )

Specimen signatures

MAPIN UIN (s)

E-mail address

Mobile number

Address for communication

Beneficiary Account- Procedure for Opening Account

Investors have the choice of selecting a DP based on their convenience,

comfort, service levels, safety, reputation, charges etc. they have the flexibility to

have more than one account with the same DP or any other DPs. No minimum

balance required for opening a depository account. Investors also have the freedom

to close an account with one DP and open another one with any other DP.

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The type of the account opening form to be filled by an investor and the list of

documents required depend on the type of beneficiary account to be opened –

whether it is for NRIs or corporate or individual. Further, the individual account can

be in a single name or joint names. Clearing members a broker have to open a

beneficiary account if they have to deal with their own holdings.

There are several client types in the depository system and different codes

are allotted to them. These are below:

Resident

� Ordinary

� Hindu Undivided Family (HUF)

Financial Institutions (FI)

�Government-sponsored

�State Financial Corporation

�Others

Foreign Institutional Investors

� Mauritius-based

� Others

Non-resident Indian (NRI)

� Repatriable

� Non-Repatriable

� Depository Receipt

Body Corporate

� Domestic Company

� Overseas Corporate Body

� Government Company

� Central Government

� State Government58

� Broker

� Foreign Bodies

� Group Companies

� Depository

Clearing Member

Foreign National – Foreign National / Depository Receipt

Mutual Fund

Trust

Bank

� Foreign Bank

� Co-operative Bank

� National Bank

Check List for Account Opening

Proof of Identity: An authorized official of the Participant should verify the

photocopies of the any of the prescribed documents submitted with their

corresponding originals.

Proof of address (POS): An authorized official of the Participant should

verify the photocopies of the any of the prescribed documents submitted

with their corresponding originals

Ensure that all compulsory fields in the account opening form are filled

(except nomination which is optional.)

In case of corporate, ensure a copy of Board resolution of authorized

signatories. Ensure proper authorization in case of power of attorney

holder.

DP should give a copy of agreement to the client, including the charge.

Inform clients regarding standing instruction facility.

Branches of DP to co-ordinate & follow up with Head Office for account

opening.

Ensure account is activated before forwarding Client ID to client.

Inform settlement deadlines to clients

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2.17.2.2. Intermediary Account: -

As per SEBI Regulations on Stock Lending and Borrowing only an approved

intermediary can lend borrow stocks from clients. This intermediary borrows from

lenders and lends to borrowers. Intermediaries registered with SEBI as approved

intermediary account with a DP of its choice for executing stock lending and

borrowing transaction made through them. An intermediary account may be opened

only after obtaining registration from SEBI under an approved Stock Lending

Scheme and getting the approval of the depository for opening the account.

Operation of demat accounts based of power of attorney

A demat account can be operated by a power of attorney holder. In this

regard, it may be noted that:-

i. A power of Attorney executed to the promulgation of the Depositories Act is

valid and enforceable.

ii. It is the responsibility of the Depository Participant to verify whether the Power

of Attorney is adequate and sufficiently authorizing the holder of the Power of

Attorney the done to operate the account of the beneficial owner.

iii. A sample clause is given hereunder which if it forms a part of the Power of

Attorney could suffice.

However it may be mentioned that a DP shall not obtain Power of Attorney

(POA) from its clients as a requirement for opening a demat account. Further the

POA shall not contain the following clauses:

I. POA Holder Done has the sole authority to operate the account and the

account folder is/are restrained from operating the account.

II. Delivery Instruction Slip (DIS) books are denied to the account holders who

have executed  a POA

III. DPs are authorized to mere the securities kept under various accounts of the

clients.

IV. DPs will have a lien on the securities of the clients.

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DPs are therefore required to review the POA document and if the POA

contains any clause similar to what has been stated above the POA should be

modified suitably. DPs must inform all those clients who have executed POA about

such changes and obtain a written confirmation from the clients that they have taken

note of the changes in the POA.

It may also be mentioned that where a client has executed a POA such

depository accounts can be operated both by the clients as well as by the POA

holder. Therefore DPs should ensure that the signatures of the accounts holders and

the POA holder are captured in the DPM system and DPs are required to provide

DIS books to the clients who have executed a POA and allow the clients to operate

their accounts as well.

Further DPs are required to maintain separate accounts of the clients in

conformity with regulation 42 of Security and Exchange Board of India (Depositories

and Participants) Regulations 1996. Lien on the securities can be only as per

Regulation 58 of SEBI Regulation and as per the procedure laid down in the bye

Laws and business Rules of NSDL.

Closure of Account

Closure on Client’s Request: - DP can close a depository account on receipt of an

application in the prescribed format. The application should be made by the account

holder or by the entire joint holder. An account can be closed only when there is no

balance in the account. In case there is any balance in the account sought to be

closed, the following steps are necessary.

a. Dematerialization of all securities to the credit of the account  at the time of

making the application for closure

b. Transferring the balance to the credit of another account opened by the same

account holders either with the same participant or with a different participant.

However, where demat request are pending for disposal for a long tine in a

demat account and the client desires to close such an account the following

procedure maybe adopted by the client

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Write a letter in the prescribed format to the issuer, requesting for rejection

of the pending dematerialization requests and send fresh physical security

to the client directly

Enclose a copy of the dematerialization request generated from DPM

system duly signed & stamped by the participant along with the aforesaid

letter to the issuer.

Before closing the account the DP should ensure that all pending transaction

has been settled. The request for closure should be processed only after ensuring

that there is no balance lying in the account.

If a client makes a request for closure of account, DPs should provide the

Statement of Transaction (SOT) to the client for the period from the beginning of the

quarter in which the account is closed till the date of closure. Further the SOT should

bear the words “Account Closed” and should be prominent. For this purpose, DP can

affix a rubber stamp or create a suitable system that will clearly show on the SOT

that the account has been closed.

Consolidation of Account

Some clients could have opened multiple accounts to dematerialize their

shares held in multiple combinations an sequence of names. However they may not

need so many accounts after they have dematerialized their shares and may want to

bring all their share holdings into one of fewer accounts. This can be achieved by

using normal off market transfer instruction.

Closure by DP

The DP may also initiate closure of a client’s if the client has defaulted in

performing its obligations laid out in the client-participant agreement. The participant

should give sufficient notice to the client before initiating closure of his account. The

notice should clearly state the reasons of closure of account. The process of closing

account in such a case is the same that of client-initiated closure.

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Closure/Shifting of Clearing Account: - a clearing member may transfer its

clearing account from one DP to another DP. For this simultaneously applications

have to be made of closure of account to the earlier DP and for opening of new

clearing member account to the new DP forwards the application to the depository

for approval and allotment of a new CM-BP-ID. Once the new CM-BP-ID is allotted

the new DP opens a new clearing account and intimates the depository advises the

old DP to close the account. The old DP then closes the account and intimates the

clearing member. All pay-out of securities, subsequent to closure of old clearing

account takes place in the new account.

2.17.2.3. Freezing Accounts

Account freezing means suspending any further transaction from a depository

account till the account is unfrozen

If a written instruction is received from the client by the DP, requesting

freezing of account.

If an electronic request is made by a client to his DP or to the Depository in

the form and manner as may be prescribed the depository.

If orders are received by the DP depository from the Central of State

Government, SEBI or any order by court, tribunal, or statutory authority.

If a request is received by the depository from a DP client.

If orders are passed by Disciplinary Action Committee (DAC) or if DP

becomes insolvent.

By freezing an account for debits only (preventing transfer of securities out of

the account) the client can receive securities in his account. An account can also be

frozen for debits as well as credits (preventing any movement of balances out of the

account). No transaction can take place in such an account until it is reactivated.A

frozen account may be unfrozen or reactivated by taking the reverse steps.

On the valid written request of the account holder where he had requested

freezing.

On directions of depository made in pursuance of the order of the

appropriate authority

Changes in Client Details63

A client may change any of the following particulars in the depository system.

All he has to do is to submit the change in writing to the DP.

Father’s/Husband’s Name (change from father’s name to husband’s name

may be necessary on account of marriage).

Standing instruction facility (an investor can activate/deactivate it).

Address (both local as well as correspondence), telephone number,

mobile number, clients have to provide proof of new address while

submitting application for change address.

Occupation details

Nominee details (the DP has to obtain the required form from the client

duly filled and effect the changes).

Bank details (clients may revise the bank details given by him before

record date to ensure that the dividend/interest warrants bear the correct

bank details).

PAN number details

In case of NRIs the Reserve Bank of India reference number and approval

date.

E-mail addresses.

Change of address for individual clients

1. While processing requests for change of address receive from client, DP

should obtain the following documents.

A written application for change of address from the client.

Proof of identity

Latest transaction statement of the account received from the participant.

Proof of new address along with the original documents of the new

address.

2. The client should personally visit the office of the DP where the client

maintains and operates his/her account and submit the application for change

of address. However in case the client expresses inability to personally visit

the participant, the application for change of address along with other

documents can be submitted though an authorized representative.64

3. The client or its authorized representative should sign the application once

again in the presence of the officials of the DP.

4. The DP should verify the signature of the client on the application and the

identity documents with the documents maintained with the DP. Further the

documents pertaining to new address should be verified with the original. After

due verification an authorized official  of the DP should put his/her signature

on the application with remarks “verified with original” and thereafter record

the change of address in the DPM system.

5. However in case DP could not verify the documents because the records of

the documents submitted by the client are kept at a different place, then the

participant must verify the same within a period of seven working days and

only then effect the change.

Change of signature

1. The client should make a request in writing specifying reasons for change in

signature.

2. New signature should be duly attested by client’s banker.

3. Client should visit DP’s office personally and produce valid proof of identity as

well as the latest transaction statement of its account.

4. In the presence of officials of DP client should affix his/her new signature.

A holder of eligible securities in the depository system may get his physical

holdings converted   into electronic form by making a request through the DP with

whom he has his beneficiary account.

Prerequisites for Dematerialization Request

1. The registered holder of the securities should make the request

2. Securities to be dematerialized must be recognized by NDDL as eligible. In

other word only those securities who’s ISIN has been activated by NSDL can

be dematerialized in the NSDL system.

3. The company/issuer should have established connectivity with NSDL. Only

after such connectivity is established the securities of that company are

recognized to be “available for dematerialization” in the NSDL system.

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4. The holder of securities should have a beneficiary account in the same name

as it appears on the security certificates to be dematerialized.

5. The request should be made in the prescribed dematerialization request form.

Dematerialization Process:

Steps

1. Client/investor submits the DRF (Demat Request Form) and physical

certificates to DP. DP checks whether the securities are available for demat.

2. DP enters the demat request in his system to be sent to NSDL.

3. DP dispatches the physical certificates along with the DRF to the R&T agent.

4. NSDL records the details of the electronic request the system and forwards

the request to the R&T agent.

5. R&T agent on receiving the physical document and the electronic request

verifies and checks them. Once the R&T agent is satisfied, dematerialization

of the concerned securities is electronically confirmed to NSDL.

6. NSDL credits the dematerialized securities to the beneficiary account of the

investor and intimates the DP electronically. The DP issues a statement of

transaction to the client

2.18. Trading and Settlement

One of the basic services provided by NSDL is to facilitate transfer of

securities from one account to another at the instruction of the account holder. In

NSDL depository system both transferor and transferee have to give instruction to its

depository participants (DPs) for delivering (transferring out) and receiving of

securities.

Transfer of securities from one account to another may be done for any of the

following purposes.

a. Transfer due to a transaction done on a person to person basis is called “off-

market” transaction

b. Transfer arising out of a transaction done on a stock exchange

c. Transfer arising out of transmission and account closure.

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The ID for an off-market trade or for a market trade has to be clearly indicated

in the form by marking appropriately. The form should be complete in all respects. All

the holders of the account have to sign the form. If the debit has to be effected on a

particular date in future, account holder may mention such date in the space

provided for ‘execution date’ in the form.

2.18.1. Settlement of off-market Transactions:

Off-Market Trade

Seller gives delivery instructions to his DP to move securities from his account

to the buyer’s account.

Buyer automatically receives the credit of the securities in to his account on

the basis of standing instruction for credits.

Buyer receives credit of securities in to his account only if he gives receipt

instructions if standing instructions have not been given.

DP needs to be extra careful in verifying the signature of the client if large

quantities of securities are being debited to the account.

Funds move from buyer to seller outside the NSDL system.

2.18.2. Settlement of Market-Transaction

Market Settlement-Demat Share

A market trade is one that is settled though participation of a clearing

Corporation. In the depository environment, the securities move through account

transfer. Once the trade is executed by the broker on the stock exchange, the seller

given a delivery instruction to his DP to transfer securities to his broker’s account.

The broker has to then complete the pay-in before the deadline prescribed by

the stock exchange. The broker removes securities from his account to (Clearing

Corporation / Clearing House) CC/CH of the stock exchange concerned, before the

deadline given by exchange.

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The CC/CH gives pay-out and securities are transferred to the buying broker’s

account. The broker then gives delivery instructions to his DP to transfer securities to

the buyer’s account.

1. Seller gives delivery instructions to his DP to move securities from his account

to his broker’s account.

2. Securities are transferred from broker’s account to CC on the basis of a

delivery out instruction.

3. On pay-out, securities are moved from CC to buying broker’s account.

4. Buying broker gives instruction and securities move to the buyer’s account.

Market type

Stock exchanges offer different market segments in which trades can be

done. The segmentation is done by the type of settlement or type of trade.

Each of the segments is denoted ad ‘Market Type’ in NSDL depository

system. The stock exchange which offers these market types, generally, recognize

these settlements with a two character code, the DI slip should contain the market

type for which securities are being transferred to the clearing member. The contract

note/trade confirmation slip given by the broker/sub-broker will indicate the market

type.

Settlement Number

Trading periods of each of the market segments is identified by a settlement

number. Every settlement number has a trade beginning day, trade-ending day,

settlement pay-in day and settlement pay-out day. Stock exchanges divide a period

of one year in to several settlement periods and allocate settlement number for each

settlement-period. All these days collectively are called ‘settlement calendar’. DPM

system will give complete details of settlement calendar for each stock exchange.

Delivery Deadline

Stock exchange set a deadline time by which clearing member are expected

to deliver securities. Clearing member can deliver securities within the deadline time

only if they have received securities from their clients. 68

In order to ensure that clients give securities in time to the clearing member,

SEBI has prescribed deadline time by which clients have to give securities to

clearing members. SEBI has advised DPs to instruct their clients to submit the

settlement instructions on T+1 (in physical form up to 4.00p.m. and 6 p.m. in case of

electronic instructions) for pay-in of securities viz.; instruction, CM Pool to CM Pool

account transfers and Delivery-out instruction, etc. For example, pay-in for trades

executed on ‘Monday’ will be on Wednesday. Hence, Client will have to submit

instructions to their Participants (up to 4 p.m. in case of physical and up to 6 p.m. in

case of electronic instructions) on Tuesday. The client must submit the delivery

instruction slip to its Depository Participant before the DPs acceptance deadline,

Automatic Delivery-out

Delivery-out instructions for moving securities from CM settlement account to

CM delivery account can be generated automatically by the respective

clearing corporations based on the net delivery obligation of its clearing

members. The clearing corporation can generate auto Dos will be generated

around the time of download of the delivery obligations to the clearing

members. Such clearing members will not be required to give delivery –out

instruction forms to the participants for pay-in to the clearing corporation in

respect of the automatically generate Dos.

Auto DOs will not be generated in the following cases and the clearing

members will have to give delivery-out instruction forms to their participants

as usual:

� Non pari-passu shares or multiple ISINs

� Irreversible delivery-out (IDO)

� Shifting of CM settlement account from one participant to another

participant

Clearing members will be required to give inter-settlement instructions to the

participants for securities lying in another settlement as usual.

Participants can generate separate reports from the DPM both for auto DOs

and manual Dos.

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2.19. Trading

Trading is the process of buying or selling different type of security in stock

market. In these stock markets daily there are many transaction held on the basis of

trading. When investor’s buys any kind of security, his main motive is to make profit out

of that by selling it on the high prices .this all process of selling and buying is called

trading. In India there is two type of trading available. These two types are:

2.19.1. Online share trading:

Realizing there is untapped market of investors who want to be able to

execute their own trades when its suits them, broker have taken their trading rooms to

the internet known as online broker, they allow you to buy and sell shares via internet.

Investors can have complete control of their stocks investing action, now that they have

the convenience of buying and selling share on the NSE online and in real time. Each

individual has access to the latest information and tools to analysis any stock

investment decision. Plus the power to execute the sale or purchase right before them

on their personal computer screen.

2.19.2. TRADING IN SECURITY MARKET:

2.19.2.1. Trading in shares:

� Cash Trading: This is a delivery based trading system, which is generally

done with the intention of taking delivery of shares or monies.

� Margin Trading: Customers can also do an intra-settlement trading up to 3 to

4 times, with available funds, wherein customers take long buy/ short sell

positions in stocks with the intention of squaring off the position within the

same day settlement cycle.

� Margin PLUS Trading: Through Margin PLUS customers can do an intra-

settlement trading up to 25 times with available funds, wherein customer take

long buy/ short sell positions in stocks with the intention of squaring off the

position within the same day settlement cycle. Margin PLUS will give a much

higher leverage in the customer account against their limits.

� Spot Trading: This facility can be used only for selling demats stocks which

already exist in demat account.

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When customer are looking at an immediate liquidity option, 'Cash on

Spot' may work the best for them, On selling shares through "cash on spot",

money is credited to customer bank a/c the same evening & not on the

exchange payout date. This money can then be withdrawn from any of the

ICICIBank ATMs.

� BTST : Buy Today Sell Tomorrow (BTST) is a facility that allows customers to

sell shares even on 1st and 2nd day after the buy order date, without this

customer have to wait for the receipt of shares into customers demat account.

� Call Trade®: Call Trade® allows customer to call on a local number in

customer city & trade on the telephone through our Customer Service

Executives. This facility is currently available in over 11 major states across

India.

� Trading on NSE/BSE: Through ICICIdirect.com, customer can trade on NSE

as well as BSE.

� Market Order: Customer could trade by placing market orders during market

hours that allows you to trade at the best obtainable price in the market at the

time of execution of the order.

� Limit Order: It Allows Customer to place a buy/sell order at a price defined. The

execution can happen at a price more favorable than the price, which is defined

by the Customer, limit orders can be placed by Customer during holidays & non

market hours too.

2.19.2.2. Trading in Derivatives

� FUTURES

Through ICICIdirect.com, customer can now trade in index and stock futures

on the NSE. In futures trading, customer takes buy/sell positions in index or stock(s)

contracts having a longer contract period of up to 3 months.

Trading in FUTURES is simple! If, during the course of the contract life, the

price moves in Customer favor (i.e. rises in case Customer have a buy position or

falls in case Customer have a sell position), Customer make a profit.

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Calculate Index and Know Customer Margin is tools to help in calculating

margin requirements and also the index & stock price movements. The ICICIDIRECT

UNIVERSITY on the HOME page is a comprehensive guide on futures and options

trading.

� OPTIONS

An option is a contract, which gives the buyer the right to buy or sell shares at

a specific price, on or before a specific date. For this, the buyer has to pay to the

seller some money, which is called premium. There is no obligation on the buyer to

complete the transaction if the price is not favorable to him.

To take the buy/sell position on index/stock options, Customer has to place

certain % of order value as margin. With options trading, Customer can leverage on

trading limit by taking buy/sell positions much more than what Customer could have

taken in cash segment.

The Buyer of a Call Option has the Right but not the Obligation to Purchase

the Underlying Asset at the specified strike price by paying a premium whereas the

Seller of the Call has the obligation of selling the Underlying Asset at the specified

Strike price.

2.19.3. Electronic trading

Electronic trading eliminates the need for physical trading floors. Brokers can

trade from their offices, using fully automated serene-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. The Stock Exchange,

Mumbai (BSE) and the National Stock Exchange (NSE) are the country’s two leading

Exchange. There is 20 other regional Exchange, connected via the Inter-Connected

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

system.

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3. RESEARCH METHODOLOGY

3.1. Title of the Study

Title: “Investment and Securities Analysis”.

3.2. Duration of the Project

Project duration: 45 DAYS training in Motilal oswal securities limited.

From 21st JUNE to 5th AUG

3.3. Objective of Study

The stock exchange of the country is the important part of the capital market.

It provides the investors a platform to invest in different securities. The well regulated

stock exchange is in the interest of both the company’s as well as the investors.

In India the stock exchange provide a good leverage to the capital market, but

it is not very easy to get profit out of this market, for this knowledge is must about the

market. the knowledge can be obtained by knowing the security market . Knowledge

of security market is very important to a management student.

As I have done my project training in Motilal Oswal Securities Limited ,the

following are the objective, which I kept in my mind while doing summer training:-

To know practical concept about the security market

To study the general operation of the Motilal Oswal Securities Limited.

Analyzing the market survey and thereby finding out the investment

pattern of the consumer.

To impart knowledge about the general working of the stock exchange

Fundamental analysis of securities

To gain in –depth knowledge about up gradation made due to

computer in stock exchange.

3.4. Type of Research

Research type is EXPLORATORY

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3.5. Sample Size and method of selecting sample

Sample size is 100 people, and sample method is STRATIFIED SAMPLING

3.6. Scope of Study

After conducting the research at Motilal Oswal Securities Limited at sumerpur

on equity research , many stages are undertaken as guidance towards appearing at

conclusion like interaction with staff ,questionnaire survey and percentage analysis.

As the questionnaire are targeted to get filled by general public who keeps

interest in investment and have an idea about equity .so I got the opportunity to know

certain facts about this securities market . Whatever conclusions I have drawn from

this research part are mentioned below:

Presently in India, securities market is not so much established and popular,

there is only a small portion of people who are being an active part of this market as

an investor. Most of the people invest only 20% to 40% of their saving in this market

and their basic criteria to invest in this market is achieving higher returns. Most of the

investors want to enjoy higher returns by investing in this market.

Most of the investors, who are investing in this securities market, are choosing

the securities on the basic of goodwill of the company although they prefer and

believe that technical analysis produces good and accurate result but still as these

technical analysis is not so easy to understand they choose their securities on the

basis of the reputation of the company. If we look upon those people who are using

technical analysis then we will find that most of the people who choose the securities

by doing technical analysis are using moving average as the most easy and suitable

tool.

Riskier long-term saving requires that an individual possess the ability to

manage the associated increased risks. Stock prices fluctuate widely, in marked

contrast to the stability of (government insured) bank deposits or bonds. This is

something that could affect not only the individual investor or household, but also the

economy on a large scale.

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The following deals with some of the risks of the financial sector in general

and the stock market in particular. This is certainly more important now that so many

newcomers have entered the stock market, or have acquired other 'risky'

investments (such as 'investment' property, i.e., real estate and collectables).

With each passing year, the noise level in the stock market rises. Television

commentators, financial writers, analysts, and market strategists are all over talking

each other to get investors' attention. At the same time, individual investors,

immersed in chat rooms and message boards, are exchanging questionable and

often misleading tips. Yet, despite all this available information, investors find it

increasingly difficult to profit.

Stock prices skyrocket with little reason, then plummet just as quickly, and

people who have turned to investing for their children's education and their own

retirement become frightened. Sometimes there appears to be no rhyme or reason

to the market, only folly.

INDIA – THE LAND OF OPPORTUNITY

India is no longer the country of Taj Mahal, elephants & snake charmers only

but has become the land of opportunities. The old age tag line of “Bird of Gold” is

slowly getting prominence and acceptance in this modern competitive environment.

We as a country have seen it all – Ruled by the outsiders, Gaining Independence,

Green Revolution, and Political Coalitions but above all, the growth of our economy

from US$ 10 billion USD to over US$ 1.2 trillion since independence.

This is just the beginning of the growth that we have embarked upon and will

cross many more milestones in the journey towards US$ 2 trillion to 3 to 4 and so on

and so forth. What is driving growth in our country, when the world is struggling to

keep their head above water? What are the businesses that will provide the much

needed impetus to our economy which will make the world sit and notice? What will

make the world believe that “Ignore India at its own peril”?

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Our GDP contributors have been changing from dominance by Agriculture to

Services & Manufacturing. 30 years back agriculture used to contribute over 30% to

our GDP but the same has dropped to under 15% whereas Service sector has

increased from over 30% to over 50%.

The entrepreneur spirit couple with the service mindset has helped us in

reaching such high growth in services sector. The manufacturing sector contribution

has increased from 19% to over 28% during the same period.

 Indian opportunity so exciting from an investment destination

 Expanding per capita: The 1 billion plus population is the most promising

opportunity that any business can look at. The below the poverty line population

has fallen from 93% in 1985 to less than 50% currently and is expected to

come down further to below 25% by 2025.

This will bring a large part of deprived population under the consumption

net. What doubles the excitement is that fact that over 60% of the population is

below the age of 35. This demographic change will present a huge opportunity

for the companies catering to consumption.

 Fiscal Discipline: The ministry of finance has been working overtime to

control and bring down the fiscal deficit. The fiscal discipline will improve the

quality of finance of the country and will allow the government to make money

available for growth. The current 3G and BWA auction has just helped the

cause.

 Government, the big spender: The biggest challenge for the government is

to impart fiscal discipline but at the same time do not compromise on the

growth story across key sectors like Infrastructure. To bridge the gap and

execute large projects, government is seeking private participation in projects

like Airport modernization, Metro railways etc.

We are currently spending 6.50% of GDP on infrastructure and the same

is expected to go up to 9% by 2013. This will give a huge boost to the economy

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and will create large employment opportunities thereby increasing the

purchasing power of people.

 Savings boom: By nature and culture, we are savers and do not believe in

leveraging ourselves as individuals. The Indian savings rate is between 35 to

40% thereby giving a huge opportunity to BFSI sector to be instrumental in

such large savings. With GDP all set to grow to 2 trillion USD, our savings will

be close to 1 trillion USD.

There are also some people who are investing in securities market by using

market calls and tips as the base to choose the securities, but they are not so much

about the result of these market calls and tips, they didn’t believe that these calls and

tips are so much fruitful but as they are not very much aware regarding the technical

tools, they have to use market calls and tips.

It is the believe of investor that technical analysis is not very easy to

understand, but as the securities market is growing day by day so investors are

trying to understand these technical tools we can say now people are being

interested to learn about technical analysis. It is a good indication that people are

now interested and excited to know about technical analysis of securities and they

want to choose the securities on the basis of technical analysis so all the companies

related to securities market like Bonanza should encourage and motivate their know

investors and clients to use of most easy technical tools to them.

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3.7. Limitation of Study

The various limitations which are found by me in market are:-

Lack of awareness of stock market : - Since the area is not known before it

takes lot of time in convincing people to start investing in share primarily in

IPO’s.

Mostly people comfortable with traditional brokers: - As people are doing

trading from their respective broker, they are quite comfortable to trade via

phone.

Some respondents are unwilling to talk : - Some respondents either do not

have time or willing does not respond, as they are quite annoyed with the

phone call.

Lake of techno savvy people and poor internet penetration:- Since most of the

people are quite experienced and also they are not techno savvy. Also

internet penetration is poor in India.

Inaccurate leads: - Sometimes leads are provided which had error in it which

varies from only 5 digit phone number to wrong phone number.

Misleading concepts: - Some people think that shares are too risky and just

another name of gamble but they don’t know it’s not at all that risky for long

investors.

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4. Facts and Findings

FINDINGS

Fundamental Analysis helps us understand in which stock we should invest In

equity market there is continuous growth in number of contracts but fewer

understand on what basis they are investing.

The findings for the above research are as follows:-

Mostly of investors which lies in 1 lac category like to invest more, and less than

10000 or 10000 is not take initiative to invest in security market.

40 to 60 age of investor are more interested in investment, Rather than investors

who are in 20 age group. In the above survey only 3% of investors are interested

in 20 age group.

40% of investors invest 20% to 40% of their total income. Among 100 people and

only 20% of people like to invest above 60% of their total income.

There are mostly investor invest in security market because of higher return. In

above diagram 47% investors only invest in security market for higher return.

mostly investor like to invest in equity rather than other market. it is about 40%

and in case commodity market it is only 5% , in bank fd’s which is prefer in

second option  is 25% , in bonds it is 10% and in mutual fund it is about 20%.

Most of the investors only invest in stock because of goodwill of the company.

only 8% of people invest in stock because of popularity of security , it means that

most of the people don’t  have the knowledge of security market

On the basis of analysis, we can conclude that mostly investor prefers technical

analysis rather than market calls. We can analyze that 50% or above investor

believe on technical analysis; it is about 62%.where as 8% of investors don’t

believe in technical analysis.

About 65% of investor does not easily understand the technical analysis of stock.

Means they believe on technical analysis but they don’t have so much of

knowledge of it.

Those investors who believe on market calls / tips, mostly based on stock broker.

It is about 47% and 8% on mobile and 45% on TV channels.

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Aware, 56, 56%

Completely Unaware, 12,

12%

Have heard about them ,

32, 32%Aware

Completely Unaware

Have heard about them

5. Analysis and Interpretation

Knowing the awareness and perception of the customers is very important in

any industry. This provides insight into the customer behaviour and his expectation

from the industry players. A proper understanding of the awareness and perception

would definitely benefit the players. This survey attempt to know the investor better.

It examines some interesting choices of the investor including the reasons behind

investing in stock market and the risk tolerance levels of the investors. The investor

knowledge about the stock market and company. This sumerpur city survey was

conducted to know the investor awareness and perception about company. It is

hoped that this survey in sumerpur city would go a long way in benefiting for Motilal

Oswal securities Limited.

Do you know about MOSL?

(a) 32% of the respondent is Have heard about them

(b) 56% of the respondent is Aware

(c) 12% of the respondent is Unaware

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Daily , 25

Weekly, 30

Monthly, 19

Sometime , 26

0

5

10

15

20

25

30

Daily Weekly Monthly Sometime

Series1

How often do you trade ?

(a) 25% of the respondent is Daily

(b) 30% of the respondent is weekly

(c) 19% of the respondent is monthly

(d) 26% of the respondent is sometime

Which of these products apart from equity your company is providing?

(a) 18% of the respondent is Mutual fund

(b) 15% of the respondent is Investment

(c) 10% of the respondent is Insurance

(d) 22% of the respondent is Trading

(e) 35% of the respondent is All of the

81

1815

10

22

35

0

5

10

15

20

25

30

35

40

Mutual Fund Investmentadvisory

Insurance Trading All of theabove

Financial Products

Series1

Yes , 50, 89%

No, 6, 11%

Yes

No

Does your company provide online trading?

(a) 11% of the respondent is No

(b) 89% of the respondent is Yes

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Investor’s income level?

(A) 2% of respondent invest in security market that lies in 10000

(b) 15% of the respondent invests in security market that lies in 10000-50000

(c) 30% of the respondent invests in security market that lies in 50000-

100000

(d) 53% of the respondent invests in security market that lies in above

100000

Category 10%

10%

20%

30%

40%

50%

60%

below 1000010000-5000050000-100000above 100000

Interpretations:

Mostly of investors which lies in 1 lac category like to invest more, and less

than 10000 or 10000 is not take initiative to invest in security market.

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age  of investors :-

(a) 3% of the respondent is below 20

(b) 42% of the respondent is 20-40

(c) 48%of the respondent is 40-60

(D) 7% age of investors above 60

below 20; 3%

20-40; 42%

40-60; 48%

above60; 7%

Interpretation:

40 to 60 age of investor are more interested in investment, Rather than

investors who are in 20 age group. In the above survey only 3% of investors

are interested in 20 age group

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How much portion of your saving do you invest / would invests in share

market?

(a) 25% of the respondents go with up to 20%

(b) 40% of the respondents go with up to 20% to 40%

(c) 15% of the respondents go with up to 40% to 60%

(d)  20% of the respondents go with above 60%

below 20% 20%-40% 40%-60% above60%0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

Series 1

Interpretations:-

40% of investors invest 20% to 40% of their total income. Among 100 people

and only 20% of people like to invest above 60% of their total income.

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you invest  in stock market because

(a) 47% of the respondents go with higher return

(b) 10% of the respondents go with faster return

(c) 25% of the respondents go with easy liquidity

(d) 18% of the respondents go with depends on market

47%

10%

25%

18%

higher returnfaster returneasy liqiditydepend on market

Interpretation:

Above diagram explain that mostly investor invest in security market because

of higher return. In above diagram 47% investors only invest in security

market for higher return.

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Taking the factors like security, rate of return and time in consideration

which among the   Following you rate as per the best option?

(a) 25% of the respondents go with Bank FD’s

(b) 5% of the respondents go with small savings in commodity market

(c) 10% of the respondent goes with Bonds

(d)  40% of the respondent goes with equity/ derivative

(e) 20% of the respondent goes with Mutual funds

25%

5%

10%

40%

20%

bank FD'scommdity marketBondsEquity/ DerivativeMutual funds

Interpretation:

We can analyze by this diagram that mostly investor like to invest in equity

rather than other market. it is about 40% and in case commodity market it is

only 5% , in bank FD’s which is prefer in second option  is 25% , in bonds it is

10% and in mutual fund it is about 20%..

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What are the bases upon which people decide to invest in stock market?

(a) 32% of the respondent goes with technical analysis / fundamental analysis

(b) 13% of the respondent goes with Market call / tips

(c) 8% of the respondent goes with popularity of security

(d) 47% of the respondent goes with goodwill of the company

technical analy-sis / fundamen-

tal analysis

Market call / tips popularity of security

goodwill of the company

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

50%

Series 1

Interpretation:

Most of the investors only invest in stock because of goodwill of the company.

Only 8% of people invest in stock because of popularity of security , it means

that most of the people don’t  have the knowledge of security market

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Which one you prefer most?

(a)  60% of the respondent goes with technical analysis

(b) 40% of the respondent goes with market tips / calls

Category 10%

10%

20%

30%

40%

50%

60%

70%

technical analysismarket tips / calls

Interpretation:

On the basis of above diagram, we can conclude that mostly investor prefers

technical analysis rather than market calls.

89

How much you believe on technical analysis of stock or how much right

result can be acquired by doing the technical analysis of any scrip?

(a) 13% of the respondent goes with up to 40%

(b) 17% of the respondent goes with 40-50%

(c) 62% of the respondent goes with more than 50%

(d) 8% of the respondent go with dose not believe at all

13%

17%

62%

8%

up to 40% 40-50% more than 50% not believe at all

Interpretation:

We can analyze that 50% or above investor believe on technical analysis; it is

about 62%.where as 8% of investors don’t believe in technical analysis.

90

Is the technical analysis easy to understand even by a simple investor?

(a) 35 respondents go with yes

(b) 65 respondents go with no

yesno

Interpretation:

About 65% of investor does not easily understand the technical analysis of

stock. Means they believe on technical analysis but they don’t have so much

of knowledge of it.

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If your base to choose the scrip is market calls / market tips, and than

what are the sources you trust upon most?

(a) 8% of the respondent go with market tips by security based company on

mobile.

(b) 45% of the respondent goes with T.V channel like CNBC

(c) 47% of the respondent goes with stock brokers

market tips by security based

company on mo-bile.

T.V channel like CNBC

stock brokers0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

50%

Series 1

Interpretation:

Those investors who believe on market calls / tips, mostly based on stock

broker. It is about 47% and 8% on mobile and 45% on TV channels.

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Up to what percent market tips are correct according to you?

(a) 65% of the respondent goes with 30% or less

(b) 10% of the respondent goes with 30%-50%

(c) 10% of the respondent goes with 50%-60%

(d) 15% of the respondent goes with more than 60%

30% or less 30%-50% 50%-60% more than 60%0%

10%

20%

30%

40%

50%

60%

70%

Series 1

Interpretation:

In the above analysis we can interpret that about 65% of investors believe that

only 30% or less market calls are correct. And 15% investors believe that

market calls are wrong about 60% and above.

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Do you think will securities market grows?

(a) 80% of respondent go with Yes

(b) 20% of respondent go with no

yesno

Interpretation:

Above interpretation explain that 80% of investors believe that security market

is grows and 20% believe that it does not grow because of recession and

many more reasons.

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6. SWOT

� Strengths

Large and diverse distribution network

Solid research and solid advice

Strong research and sales teams

Brand recognition and Strong financial results

Experienced top management

� Weaknesses

Charges are high compare to other companies in industry

� Opportunities

Growing Financial Services industry's share of wallet for disposable

income

Huge market opportunity for wealth management service providers as

Indian wealth management business is transforming from mere wealth

safeguarding to growing wealth.

Regulatory reforms would aid greater participation by all class of

investors

Leveraging technology to enable best practices and processes

Increased appetite (need) of Indian corporate for growth capital

� Threats

Execution risk and Unfavorable economic conditions

Slowdown in global liquidity flows

Increased intensity of competition from local and global players

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7. Conclusion

This securities market is about to grow in future very much with the growth of equity

research. There is very high competition in this market , there are many companies which

are providing different type of services to their clients and, this market is centre of attraction

to new entrepreneur because it is already successful market and it is for sure that it will

grow further, and there are many opportunities lying ahead in the way.

Motilal Oswal Securities Limited is an active and well known participant of this

securities market, this is achieving great success by working very hard with dedication.

There is very good staff in this organization so it may facilitate its clients in many ways,

although there is competition but still it is doing its own work and providing services to their

clients up to the best extent.

Solid research and analysis is very important service of Motilal Oswal Securities

Limited that it is providing to its client .It provides the suggestion that which security is good

for the purpose of investment.

For this project purpose, i have been gone through with a research that has been

conducted in sumerpur with a sample size of 160 investors and on the basis of this

research; I can conclude that most of the people believe that technical analysis can provide

more suitable and desirable results to them .People are interested to know about this

technical analysis part, for this we just need to aware and encourage them.

There should be more awareness made about the portfolio management services by giving

more advertisement.

The MOSL should go for tie-ups with the corporate to increase business.

Motilal Oswal Securities Limited should organize some events to build its

Brand Image in the minds of the people towards MOSL.

As per customer’s point of view, they feel that Motilal Oswal Securities Limited

should open more number of branches for the convenience of people.

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8. Recommendation and Suggestions

As said earlier investment in equity market is growing fast, but still there are

certain things that need to be considered while & after investing. Thus this section deals

with a certain recommendations which would help in better development in investment

and securities.

Information about “investment and securities analysis” must be given to all the

investors & training should be conducted.

A monthly analysis of the company’s market movement should be sent to the

clients.

Reduction in the cost of the brokerage that would help in increasing the

investment as well as small investors would be able to invest more freely.

A seminar should be arranged for the investors for giving them information

about various factors to be considered before & after investing.

Company (MOSL) should try to improve its services delivered to the

customers. Bad service is one serious hinder in its growth. It should try to

speed up the response given to the customers.

MOSL is facing stiff competition from different companies like Bajaj Allianz,

ICICI Prudential etc. In keeping track with them MOSL have to bring out

products & services with attractive schemes.

Highly Focus on Financial Planning Segment.

Try to maintain efficient and updated employees in most actionable

department. Those are very aware with practical problem from franchise end.

Maintain Micro Level Highly Accurate Research Work by R-Department.

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9. QUESTIONNAIRE

Questionnaire based on awareness of company and consumer behaviour while taking decisions related to his investment in Equities and Derivative market

Name:-………………….....                         

Age:-……………………….

Mobile no:-…………………                            

Landline no:-……………….

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

Occupation:-…………….....

  Please select the appropriate option:

Investor’s income level?

(A) 10000              (b) 10000-50000             (c) 50000-100000          

(d) above 100000

age of investors :-

(a) 20                 (b) 20-40                    (c) 40-60                     (d) 60 above

How much portion of yours saving do you invest/would invest in share

market?

(a) 20%               (b) 20%-40%                (c) 40%-60%

(d) Above 60%

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you invest in stock market because :-

(a) high return             ( b) faster return            ( c ) easily liquidity    

(d) depends on market

Taking the factors like security, rate of return and time in consideration

which among the Following you rate as per the best option?

(a) Bank FD’s                        (b) commodity market              (c) Bonds

(d)  Equity/ derivative          (e) Mutual funds

What are the bases upon which people decide to invest in stock market?

(a) Technical analysis / fundamental analysis

(b)Market call / tips

(c) Popularity of security

(d) Goodwill of the company

Which one you prefer most?

(a) Technical analysis

(b) Market tips / calls

How much you believe on technical analysis of stock or how much right

result can be acquired by doing the technical analysis of any scrip?

(a)40%           ( b ) 40-50%            ( c ) more than 50%

(d) Does not believe at all

99

Is the technical analysis easy to understand even by a simple investor?

(a) Yes                                  (b) no

If your base to choose the scrip is market calls / market tips, and then

what are the sources you trust upon most?

(a) market tips by security based company  on mobile .

(b) T.V channel like CNBC

(c) stock brokers

Up to what percent market tips are correct according to you?

(a) 30% or less                    (b) 30%-50%               (c) 50%-60%

(d) More than 60%

Do you think will securities market grows?

(a) Yes                                 (b) no  .

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Bibliography

� C. R. Kothari: Research Methodology

� Dr. Sonal Jain: Security Analysis and Portfolio Management

Library of company and college

www.motilaloswal.com/home

www.google.com and other search engine

www.wikipedia.com

The website of National Stock Exchange, jvirahyas@gmail.com, Bombay

Stock Exchange, Security Exchange Board Of India and also other supporting

webpage’s of Motilal Oswal Securities Limited.

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