A RESEARCH STUDY PROJECT REPORT

ON

SHARE MARKET & FINANCIAL SYSTEM

IS SUBMITTED BY

Pramod Kumar ChoudharyMBA III SEM

TO

BANARASIDAS CHANDIWALA INSTITUTE OF PROFESSIONAL STUDIES

INTERNSHIP PROJECT(2010-2012)

1

PREFACE

THE CORPORATE PROGRAM of MBA course is a well structured and integrated programme. The course of management gives a practical knowledge in our study course. Industries give us much information about the different product and services we use in our day to day life.

It is highly said that “practice makes a man perfect” the summer project training which is a part of M.B.A to get a practical understanding and training of the business management. Thus the industrial training which is a part of M.B.A course helps the student to get the knowledge about the actual environment of an organization.

ACCORD MARKETING PVT LTD. is one of such company dealing in Share market Derivatives, Commodities, Mutual fund IPO distribution in delhi.

It involved the study of finance activities of the organization. I have under taken industrial training in Accord Marketing Pvt Ltd. at Delhi crossing from 5-june-2011 to 5-july-2011 as a part of my MBA course curriculum and I thus, present a project report on it at the best of my ability knowledge and work done.

2

ACKNOWLEDGEMENT

I feel pleasure for making a report which I visited at Jaipur named Accord Marketing Broking Ltd. this year.

The main objective of this practical training is to get information about the real environment of the firm.

I hereby acknowledge my sincere thanks and grateful to our director MR Lalit Choudhary. I also thanks to our faculties, our office superiors and my friend partner which gave full response to us.

As a part of MBA programme I have taken training in stock market in Accord Marketing Pvt Ltd for a period of 60 days..Success cannot come without inspiration, motivation & innovation. We the projectors ascribe our success in this venture to our guide Mr. Lalit Choudhary .Without his guidance our project completion is a distance dream.

I wish to express to humble gratitude to Ms. Sulekha for his diligent efforts in providing particle tips to tackle complicated situation with limited sources, whose ever presence in mind with helping attitude to encourage me to complete this study and for his untiring help and valuable guidance.

3

CONTENTS

. Introduction

Company Profile

. Introduction of stock market

Stock marketHistoryTradingMarket participantsImportance of stock marketThe behaviour of the stock marketBombay stock exchangeBSE indicesNational stock exchangeDerivativesFinancial systemFlow of fundMain function of financial systemFinancial marketCapital marketStock exchangeRelation of the stock market with financial systemThe stock market, individual investors, and financial riskFunction of stock exchangeService of stock exchange

. Profile of the broking house in the stock market

KarvyKotak securitiesShare khanIndia infolineBonanzaReliance moneyReligare securitiesIndia bullsAnand rathi

4

. Research objective

Statement of problemObjective of the research project

. Research methodology objective and limitation

Problem definitionJustification of studyObjective of studyResearch designSource of dataLimitation of study

. Conclusions and suggestions

. Q u e s t i o n n a i r e

5

COMPANY PROFILE

OVERVIEW:

ACCORD MARKETING PVT LTD, is a premier financial services provider and provides investor services to corporate, ACCORD covers the spectrum of financial services such as Depository Participants, Distribution of financial products - mutual funds, bonds, fixed deposit, equities, Insurance Broking Personal Finance Advisory Services. ACCORD MARKETING has a professional management team and ranks among the best in technology, operations in its business segments.

EARLY DAYS :

The birth of ACCORD MARKETING PVT LTD.was on a modest scale in 2009. It began with the vision and enterprise of practicing Marketing initially.Company started financial services recently in the year 2010.Since then, they making continuous progess have utilized their experience and superlative expertise to go from strength to strength…to better their services, to provide new ones, integrated financial service.

6

7

STOCK MARKET

A stock market, or (equity market), is a private or public market for the trading of company stock and derivatives of company stock at an agreed price; these are securities listed on a stock exchange as well as those only traded privately.

The size of the world stock market is estimated at about $51 trillion. The world derivatives market has been estimated at about $480 trillion face or nominal value, 12 times the size of the entire world economy. It must be noted though that the value of the derivatives market, because it is stated in terms of notional values, and cannot be directly compared to a stock or a fixed income security, which traditionally refers to an actual value . Many such relatively illiquid securities are valued as marked to model, rather than an actual market price.

The stocks are listed and traded on stock exchanges which are entities a corporation or mutual organization specialized in the business of bringing buyers and sellers of stocks and securities together. The stock market in the United States includes the trading of all securities listed on the NYSE, the NASDAQ, the Amex, as well as on the many regional exchanges, e.g. OTCBB and Pink Sheets. European examples of stock exchanges include the London Stock Exchange, the Deutsche Borse and the Paris Bourse.

HISTORY

8

Historian Fernand Braudel suggests that in Cairo in the 11th century Muslim and Jewish merchants had already set up every form of trade association and had knowledge of many methods of credit and payment, disproving the belief that these were invented later by Italians. In 12th century France the courratiers de change were concerned with managing and regulating the debts of agricultural communities on behalf of the banks. Because these men also traded with debts, they could be called the first brokers. In late 13th century Bruges commodity traders gathered inside the house of a man called Van der Beurse, and in 1309 they became the "Brugse Beurse", institutionalizing what had been, until then, an informal meeting. The idea quickly spread around Flanders and neighboring counties and "Beurzen" soon opened in Ghent Antwerp and Amsterdam.

In the middle of the 13th century Venetian bankers began to trade in government securities. In 1351 the Venetian government outlawed spreading rumors intended to lower the price of government funds. Bankers in Pisa, Verona, Genoa and Florence also began trading in government securities during the 14th century. This was only possible because these were independent city states not ruled by a duke but a council of influential citizens. The Dutch later started joint stock companies, which let shareholders invest in business ventures and get a share of their profits - or losses. In 1602, the Dutch East India Company issued the first shares on the Amsterdam Stock Exchange. It was the first company to issue stocks and bonds.

The Amsterdam Stock Exchange (or Amsterdam Beurs) is also said to have been the first stock exchange to introduce continuous trade in the early 17th century. The Dutch "pioneered short selling, option trading, debt-equity swaps, merchant banking, unit trusts and other speculative instruments, much as we know them" (Murray Sayle, "Japan Goes Dutch", London Review of Books XXIII.7, April 5, 2001). There are now stock markets in virtually every developed and most developing economies, with the world's biggest markets being in the United States, Canada, China (Hong Kong), India, UK, Germany, France and Japan.

TRADING

Participants in the stock market range from small individual stock investors to large hedge fund traders, who can be based anywhere. Their orders usually end up with a professional at a stock exchange, who executes the order.

Some exchanges are physical locations where transactions are carried out on a trading floor, by a method known as open outcry. This type of auction is used in stock exchanges and commodity exchanges where traders may enter "verbal" bids and offers simultaneously. The other type of exchange is a virtual kind, composed of a network of computers where trades are made electronically via traders.

Actual trades are based on an auction market paradigm where a potential buyer bids a specific price for a stock and a potential seller asks a specific price for the stock. (Buying or selling at market means you will accept any ask price or bid price for the stock, respectively.)

9

When the bid and ask prices match, a sale takes place on a first come first served basis if there are multiple bidders or askers at a given price.

The purpose of a stock exchange is to facilitate the exchange of securities between buyers and sellers, thus providing a marketplace (virtual or real). The exchanges provide real-time trading information on the listed securities, facilitating price discovery.

The New York Stock Exchange is a physical exchange, also referred to as a listed exchange — only stocks listed with the exchange may be traded. Orders enter by way of exchange members and flow down to a specialist, who goes to the floor trading post to trade stock. The specialist's job is to match buy and sell orders using open outcry. If a spread exists, no trade immediately takes place--in this case the specialist should use his/her own resources (money or stock) to close the difference after his/her judged time. Once a trade has been made the details are reported on the "tape" and sent back to the brokerage firm, which then notifies the investor who placed the order. Although there is a significant amount of human contact in this process, computers play an important role, especially for so-called "program trading".

The NASDAQ is a virtual listed exchange, where all of the trading is done over a computer network. The process is similar to the New York Stock Exchange. However, buyers and sellers are electronically matched. One or more NASDAQ market makers will always provide a bid and ask price at which they will always purchase or sell 'their' stock.

The Paris Bourse, now part of Euronext, is an order-driven, electronic stock exchange. It was automated in the late 1980s. Prior to the 1980s, it consisted of an open outcry exchange. Stockbrokers met on the trading floor or the Palais Brongniart. In 1986, the CATS trading system was introduced, and the order matching process was fully automated.

From time to time, active trading (especially in large blocks of securities) has moved away from the 'active' exchanges. Securities firms, led by UBS AG, Goldman Sachs Group Inc. and Credit Suisse Group, already steer 12 percent of U.S. security trades away from the exchanges to their internal systems. That share probably will increase to 18 percent by 2010 as more investment banks bypass the NYSE and NASDAQ and pair buyers and sellers of securities themselves, according to data compiled by Boston-based Aite Group LLC, a brokerage-industry consultant [citation needed].

Now that computers have eliminated the need for trading floors like the Big Board's, the balance of power in equity markets is shifting. By bringing more orders in-house, where clients can move big blocks of stock anonymously, brokers pay the exchanges less in fees and capture a bigger share of the $11 billion a year that institutional investors pay in trading commissions

MARKET PARTICIPANTS

10

Many years ago, worldwide, buyers and sellers were individual investors, such as wealthy businessmen, with long family histories (and emotional ties) to particular corporations. Over time, markets have become more "institutionalized"; buyers and sellers are largely institutions (e.g., pension funds, insurance companies, mutual funds, hedge funds, investor groups, and banks). The rise of the institutional investor has brought with it some improvements in market operations. Thus, the government was responsible for "fixed" (and exorbitant) fees being markedly reduced for the 'small' investor, but only after the large institutions had managed to break the brokers' solid front on fees they then went to 'negotiated' fees, but only for large institutions).

However, corporate governance (at least in the West) has been very much adversely affected by the rise of (largely 'absentee') institutional 'owners'

IMPORTANCE OF STOCK MARKET

The stock market is one of the most important sources for companies to raise money. This allows businesses to be publicly traded, or raise additional capital for expansion by selling shares of ownership of the company in a public market. The liquidity that an exchange provides affords investors the ability to quickly and easily sell securities. This is an attractive feature of investing in stocks, compared to other less liquid investments such as real estate.

History has shown that the price of shares and other assets is an important part of the dynamics of economic activity, and can influence or be an indicator of social mood. Rising share prices, for instance, tend to be associated with increased business investment and vice versa. Share prices also affect the wealth of households and their consumption. Therefore, central banks tend to keep an eye on the control and behavior of the stock market and, in general, on the smooth operation of financial system functions. Financial stability is the raison d'être of central banks.

Exchanges also act as the clearinghouse for each transaction, meaning that they collect and deliver the shares, and guarantee payment to the seller of a security. This eliminates the risk to an individual buyer or seller that the counterparty could default on the transaction.

The smooth functioning of all these activities facilitates economic growth in that lower costs and enterprise risks promote the production of goods and services as well as employment. In this way the financial system contributes to increased prosperity.

THE BEHAVIOR OF THE STOCK MARKET

From experience we know that investors may temporarily pull financial prices away from their long term trend level. Over-reactions may occur—so that excessive optimism (euphoria) may drive prices unduly high or excessive pessimism may drive prices unduly low. New

11

theoretical and empirical arguments have been put forward against the notion that financial markets are efficient.

According to the efficient market hypothesis (EMH), only changes in fundamental factors, such as profits or dividends, ought to affect share prices. (But this largely theoretic academic viewpoint also predicts that little or no trading should take place—contrary to fact—since prices are already at or near equilibrium, having priced in all public knowledge.) But the efficient-market hypothesis is sorely tested by such events as the stock market crash in 1987, when the Dow Jones index plummeted 22.6 percent—the largest-ever one-day fall in the United States. This event demonstrated that share prices can fall dramatically even though, to this day, it is impossible to fix a definite cause: a thorough search failed to detect any specific or unexpected development that might account for the crash. It also seems to be the case more generally that many price movements are not occasioned by new information; a study of the fifty largest one-day share price movements in the United States in the post-war period confirms this. Moreover, while the EMH predicts that all price movement (in the absence of change in fundamental information) is random (i.e., non-trending), many studies have shown a marked tendency for the stock market to trend over time periods of weeks or longer.

Various explanations for large price movements have been promulgated. For instance, some research has shown that changes in estimated risk, and the use of certain strategies, such as stop-loss limits and Value at Risk limits, theoretically could cause financial markets to overreact.

Other research has shown that psychological factors may result in exaggerated stock price movements. Psychological research has demonstrated that people are predisposed to 'seeing' patterns, and often will perceive a pattern in what is, in fact, just noise. (Something like seeing familiar shapes in clouds or ink blots.) In the present context this means that a succession of good news items about a company may lead investors to overreact positively (unjustifiably driving the price up). A period of good returns also boosts the investor's self-confidence, reducing his (psychological) risk threshold.

In one paper the authors draw an analogy with gambling. In normal times the market behaves like a game of roulette; the probabilities are known and largely independent of the investment decisions of the different players. In times of market stress, however, the game becomes more like poker (herding behavior takes over). The players now must give heavy weight to the psychology of other investors and how they are likely to react psychologically.

The stock market, as any other business, is quite unforgiving of amateurs. Inexperienced investors rarely get the assistance and support they need. In the period running up to the recent NASDAQ crash, less than 1 per cent of the analyst's recommendations had been to sell (and even during the 2000 - 2002 crash, the average did not rise above 5%). The media amplified the general euphoria, with reports of rapidly rising share prices and the notion that large sums of money could be quickly earned in the so-called new economy stock market. (And later amplified the gloom which descended during the 2000 - 2002 crash, so that by summer of 2002, predictions of a DOW average below 5000 were quite common.

12

IRRATIONAL BEHAVIOR

Sometimes the market tends to react irrationally to economic news, even if that news has no real effect on the technical value of securities itself. Therefore, the stock market can be swayed tremendously in either direction by press releases, rumors, euphoria and mass panic.

Over the short-term, stocks and other securities can be battered or buoyed by any number of fast market-changing events, making the stock market difficult to predict.

The Bombay Stock Exchange in India

The Bombay Stock Exchange Limited (Hindi: Mumbai Seyar Bajar) (formerly, The Stock Exchange, Mumbai; popularly called The Bombay Stock Exchange, or BSE) is the oldest stock exchange in Asia. It is also the biggest stock exchange in the world in terms of listed companies with 6,000 listed companies as of August 2007. It is located at Dalal Street, Mumbai, India. On 31 December 2007, the equity market capitalization of the companies listed on the BSE was US$ 1.79 trillion, making it the largest stock exchange in South Asia and the tenth largest in the world.

The Bombay Stock Exchange was established in 1875. Around 6,000 Indian companies list on the stock exchange, and it has a significant trading volume. The BSE SENSEX (SENSitive indEX), also called the "BSE 30", is a widely used market index in India and Asia. Though many other exchanges exist, BSE and the National Stock Exchange of India account for most of the trading in shares in India

Type Stock ExchangeLocation Mumbai, IndiaOwner Bombay Stock Exchange Limited

Key peopleMadhu Kannan (CEO)

Mahesh L. Soneji (COO).

Currency INRNo. of listings 4,700

Market Cap US$ 1.79 trillion (Dec 31, 2007)Volume US$ 980 billion (2006)Indexes BSE SensexWebsite http://www.bseindia.com/

13

BSE INDICES

The BSE SENSEX (also known as the BSE 30 index) is a value-weighted index composed of thirty scrips, with the base April 1979 = 100. The set of companies which make up the index has been changed only a few times in the last twenty years. These companies account for around one-fifth of the market capitalization of the BSE.

Apart from BSE SENSEX, which is the most popular stock index in India, BSE uses other stock indices as well:

B S E 5 0 0 B S E 1 0 0 B S E 2 0 0 B S E P S U B S E M I D C A P B S E S M L C A P B S E B A N K E X B S E T e c k B S E A u t o B S E P h a r m a B S E F a s t M o v i n g C o n s u m e r G o o d s ( F M C G ) B S E C o n s u m e r D u r a b l e s

BSE BROADCAST

The BSE Broadcast is a large ticker on the wall of the BSE, which continuously displays the latest stock quotes from the market. It also displays – on what is described as India's and South Asia's largest video screen –one of the leading business-news channels in India: NDTV Profit.

This new system was unveiled on December 15, 2006, when Dr Prannoy Roy, the Managing Director of New Delhi Television (NDTV) Ltd, struck the BSE's opening bell. Mr. Damodaran, the Chairman of the Securities and Exchange Board of India (SEBI), said that the ticker would provide information and analysis of the financial world.

Following is the timeline on the rise and rise of the Sensex through Indian stock market history.

1000, July 25, 1990 On July 25, 1990, the Sensex touched the magical four-digit figure for the first time and closed at 1,001 in the wake of a good monsoon season and excellent corporate results.

14

2000, January 15, 1992 On January 15, 1992, the Sensex crossed the 2,000-mark and closed at 2,020 followed by the liberal economic policy initiatives undertaken by the then finance minister and current Prime Minister Dr Manmohan Singh.

3000, February 29, 1992 On February 29, 1992, the Sensex surged past the 3000 mark in the wake of the market-friendly

Budget announced by the then Finance Minister, Dr Manmohan Singh.

4000, March 30, 1992 On March 30, 1992, the Sensex crossed the 4,000-mark and closed at 4,091 on the expectations of a liberal export-import policy. It was then that the Harshad Mehta scam hit the markets and Sensex witnessed unabated selling.

5000, October 8, 1999 On October 8, 1999, the Sensex crossed the 5,000-mark as the BJP-led coalition won the majority in the 13th Lok Sabha election.

6000, February 11, 2000 On February 11, 2000, the infotech boom helped the Sensex to cross the 6,000-mark and hit and all time high of 6,006.

7000, June 20, 2005 On June 20, 2005, the news of the settlement between the Ambani brothers boosted investor sentiments and the scrips of RIL, Reliance Energy, Reliance Capital, and IPCL made huge gains. This helped the Sensex crossed 7,000 points for the first time.

8000, September 8, 2005 On September 8, 2005, the Bombay Stock Exchange's benchmark 30-share index -- the Sensex -- crossed the 8000 level following brisk buying by foreign and domestic funds in early trading.

9000, November 28, 2005 The Sensex on November 28, 2005 crossed the magical figure of 9000 to touch 9000.32 points during mid-session at the Bombay Stock Exchange on the back of frantic buying spree by foreign institutional investors and well supported by local operators as well as retail investors.

10,000, February 6, 2006 The Sensex on February 6, 2006 touched 10,003 points during mid-session. The Sensex finally closed above the 10K-mark on February 7, 2006.

11,000, March 21, 2006 The Sensex on March 21, 2006 crossed the magical figure of 11,000 and touched a life-time peak of 11,001 points during mid-session at the Bombay Stock Exchange for the first time. However, it was on March 27, 2006 that the Sensex first closed at over 11,000 points.

12,000, April 20, 2006 The Sensex on April 20, 2006 crossed the 12,000-mark and closed at a peak of 12,040 points for the first time.

15

13,000, October 30, 2006 The Sensex on October 30, 2006 crossed the magical figure of 13,000 and closed at 13,024.26 points, up 117.45 points or 0.9%. It took 135 days for the Sensex to move from 12,000 to 13,000 and 123 days to move from 12,500 to 13,000.

14,000, December 5, 2006 The Sensex on December 5, 2006 crossed the 14,000-mark to touch 14,028 points. It took 36 days for the Sensex to move from 13,000 to the 14,000 mark.

15,000, July 6, 2007 The Sensex on July 6, 2007 crossed the magical figure of 15,000 to touch 15,005 points in afternoon trade. It took seven months for the Sensex to move from 14,000 to 15,000 points.

16,000, September 19, 2007 The Sensex scaled yet another milestone during early morning trade on September 19, 2007. Within minutes after trading began, the Sensex crossed 16,000, rising by 450 points from the previous close. The 30-share Bombay Stock Exchange's sensitive index took 53 days to reach 16,000 from 15,000. Nifty also touched a new high at 4659, up 113 points.

The Sensex finally ended with a gain of 654 points at 16,323. The NSE Nifty gained 186 points to close at 4,732.

17,000, September 26, 2007 The Sensex scaled yet another height during early morning trade on September 26, 2007. Within minutes after trading began, the Sensex crossed the 17,000-mark. Some profit taking towards the end, saw the index slip into red to 16,887 - down 187 points from the day's high. The Sensex ended with a gain of 22 points at 16,921.

18,000, October 09, 2007 The BSE Sensex crossed the 18,000-mark on October 09, 2007. It took just 8 days to cross 18,000 points from the 17,000 mark. The index zoomed to a new all-time intra-day high of 18,327. It finally gained 789 points to close at an all-time high of 18,280. The market set several new records including the biggest single day gain of 789 points at close, as well as the largest intra-day gains of 993 points in absolute term backed by frenzied buying after the news of the UPA and Left meeting on October 22 put an end to the worries of an impending election.

19,000, October 15, 2007 The Sensex crossed the 19,000-mark backed by revival of funds-based buying in blue chip stocks in metal, capital goods and refinery sectors. The index gained the last 1,000 points in just four trading days. The index touched a fresh all-time intra-day high of 19,096, and finally ended with a smart gain of 640 points at 19,059.The Nifty gained 242 points to close at 5,670.

20,000, October 29, 2007 The Sensex crossed the 20,000 mark on the back of aggressive buying by funds ahead of the US Federal Reserve meeting. The index took only 10 trading days to gain 1,000 points after the index crossed the 19,000-mark on October 15. The major drivers of today's rally were index

Heavyweights Larsen and Toubro, Reliance Industries, ICICI Bank, HDFC Bank and SBI among others. The 30-share index spurted in the last five minutes of trade to fly-past the

16

crucial level and scaled a new intra-day peak at 20,024.87 points before ending at its fresh closing high of 19,977.67, a gain of 734.50 points. The NSE Nifty rose to a record high 5,922.50 points before ending at 5,905.90, showing a hefty gain of 203.60 points.

21,000, January 8, 2008 the sensex crossed the 21,000 mark in intra-day trading after 49 trading sessions. This was backed by high market confidence of increased FII investment and strong corporate results for the third quarter. However, it later fell back due to profit booking.

15,200, June 13, 2008 the sensex closed below 15,200 mark, Indian market suffer with major downfall from January 21, 2008

14,220, June 25, 2008 the sensex touched an intra day low of 13,731 during the early trades, then pulled back and ended up at 14,220 amidst a negative sentiment generated on the Reserve Bank of India hiking CRR by 50 bps. FII outflow continued in this week.

12,822, July 2, 2008 the sensex hit an intra day low of 12,822.70 on July 2nd, 2008. This is the lowest that it has ever been in the past year. Six months ago, on January 10th, 2008, the market had hit an all time high of 21206.70. This is a bad time for the Indian markets, although Reliance and Infosys continue to lead the way with mostly positive results. Bloomberg lists them as the top two gainers for the Sensex, closely followed by ICICI Bank and ITC Ltd

11801.70, Oct 6, 2008 The sensex closed at 11801.70 hitting the lowest in the past 2 years.

10527, Oct 10, 2008 The Sensex today closed at 10527,800.51 points down from the previous day having seen an intraday fall of as large as 1063 points. Thus, this week turned out to be the week with largest percentage fall in the Sensex.

14284.21, May 18, 2009 After the result of 15th Indian general election Sensex gained 2110.79 points from the previous close of 12173.42 these creates a new history in Indian Market. In the Opening Trade itself sensex gain 15% from the previous day close this leads to the suspension of 2 hours trade.After 2 hours sensex again surged this leads to the suspension of full day trading. 14200

Broadcast Initiatives Ltd has informed BSE about the Audited Financial Results for the Year ended March 31, 2009 & about the Financial Results for the Quarter ended June 30, 2009.           

Broadcast Initiatives Limited has informed the Exchange that the Annual General Meeting of the members of the Company was held on September 29, 2009. The members of the Company at the said Annual General Meeting have accorded their consent to the following business by passing an Ordinary resolution : 1) Adoption of the Audited Accounts for the financial year ended March 31, 2009 together with the Reports of Auditors'' and Directors thereon. 2) Re-appointment of Mr. M.S. Kapur, Director retiring by rotation. 3) Re-appointment of M/s. A.R. Sodha & Co., Chartered Accountants as Statutory Auditors of the Company for the financial year 2009-10 at the remuneration to be fixed by the Board of Directors. 4) Increase in the Authorized Share Capital of the Company from Rs. 30 Crores to Rs. 50 Crores. 5) Alteration of Clause V of the Memorandum of Association consequent upon increase in Authorized Share Capital upto

17

Rs. 50 Crores. 6) Increase in the Borrowings powers of the Company upto Rs. 150 Crores pursuant to clause 293 (1)(a) & 293 (1) (d) of the Companies Act, 1956. 

15484.21, May 18, 2010 After the result of 16th Indian general election Sensex gained 2110.79 points from the previous close of 15484.42 these creates a new history in Indian Market. In the Opening Trade itself sensex gain 15% from the previous day close this leads to the suspension of 2 hours trade.After 2 hours sensex again surged this leads to the suspension of full day trading. 14200

Broadcast Initiatives Ltd has informed BSE that the Board of Directors of the Company at its meeting held on May 13, 2010, inter alia, has : 1. Taken note of resignation received from Mr. G.D. Sharma as an Independent and Non-Executive Director of the Company with effect from May 13, 2010. 2. Approved and consider the appointment of the following additional Directors with effect from May 13, 2010: Mr. Waryam Singh; Mr. Sarang Wadhawan; Mr. Ashok Kumar Gupta and also as a Managing Director; Mr. Bua Singh and also as Chairman; Mr. Deepak Sharma The Company has submitted to BSE the profile and the other details in this regard. 3. Reconstitution of various committees. 4. Formation of Finance Committee constituted in terms of regulation 77 of table ''A'' of the Companies Act, 1956 for various financial decisions of the Company such as investments, loans and borrowings etc. 5. Allotment of 60,00,000 (Sixty Lacs) Equity Shares at a Price of Rs.36.50 as on relevant date June 23,2008 calculated as per Chapter XIII of ''Preferential Issue'' of SEBI (Disclosure of investor and Protection Guidelines, 2000) presently known under Chapter VII of {(Issue of Capital and Disclosure Requirements Regulations, 2009)} as on preferential basis to HDIL Infra Projects Pvt Ltd consequent upon the approval of Ministry of Information and Broadcasting and in pursuance of the Share Purchase agreement dated June 24, 2008 entered by the Company with HDIL Infra Projects Pvt. Ltd. 6. Change in designation of Mr. Gautam Adhikari (Chairman) to Non-Executive Director and Mr. Markand Adhikari (Vice-Chairman and Managing Director) to Non-Executive Director with effect from May 13, 2010. 7. 41,23,072 (Forty One Lakhs Twenty Three Thousand and Seventy Two) Equity Shares have been released from Escro Account and has been transferred to HDIL Infra Projects Pvt. Ltd consequent upon the approval of Ministry of Information and Broadcasting and in pursuance of the Share Purchase agreement dated June 24, 2008 entered by the Company with HDIL Infra Projects Pvt. Ltd. 7. Pursuant in the aforementioned preferential allotment, open offer and transfer of Shares to HDIL Infra Projects Pvt. Ltd, Mr. Rakesh Kumar Wadhawan, Mr. Sarang Wadhawan (the Acquirer''s) Mr. Waryani Singh and Mr. Ashok Kumar Gupta (Persons acting in concert) together holds 51% of the Shareholding of the Company.   

         

NATIONAL STOCK EXCHANGE LIMITED

Type Stock ExchangeLocation Mumbai, India

18

Coordinates 19°3′37″N, 72°51′35″EOwner National Stock Exchange of India LimitedKey people Mr.vinu koshy Managing DirectorCurrency INRNo. of listings 1587Market Cap US$ 1.46 trillion (2006)

IndexesS&P CNX NiftyCNX Nifty JuniorS&P CNX 500

Website http://www.nse-india.com/

The National Stock Exchange of India Limited (NSE) is a Mumbai-based stock exchange. It is the largest stock exchange in India in terms of daily turnover and number of trades, for both equities and derivative trading. Though a number of other exchanges exist, NSE and the Bombay Stock Exchange are the two most significant stock exchanges in India and between them are responsible for the vast majority of share transactions. The NSE's key index is the S&P CNX Nifty, known as the Nifty, an index of fifty major stocks weighted by market capitalisation.

NSE is mutually-owned by a set of leading financial institutions, banks, insurance companies and other financial intermediaries in India but its ownership and management operate as separate entities[2]. As of 2006, the NSE VSAT terminals, 2799 in total, cover more than 1500 cities across India [3]. In October 2007, the equity market capitalization of the companies listed on the NSE was US$ 1.46 trillion, making it the second largest stock exchange in South Asia. NSE is the third largest Stock Exchange in the world in terms of the number of trades in equities.It is the second fastest growing stock exchange in the world with a recorded growth of 16.6%. Origins

NSE building at BKC

19

The National Stock Exchange of India was promoted by leading Financial institutions at the behest of the Government of India, and was incorporated in November 1992 as a tax-paying company. In April 1993, it was recognized as a stock exchange under the Securities Contracts (Regulation) Act, 1956. NSE commenced operations in the Wholesale Debt Market (WDM) segment in June 1994. The Capital Market (Equities) segment of the NSE commenced operations in November 1994, while operations in the Derivatives segment commenced in June 2000.

INNOVATIONS

NSE has remained in the forefront of modernization of India's capital and financial markets, and its pioneering efforts include:

Being the first national, anonymous, electronic limit order book (LOB) exchange to trade securities in India. Since the success of the NSE, existent market and new market structures have followed the "NSE" model. Setting up the first clearing corporation "National Securities Clearing Corporation Ltd." in India. NSCCL was a landmark in providing innovation on all spot equity market (and later, derivatives market) trades in India. Co-promoting and setting up of National Securities Depository Limited, first depository in India[2]. Setting up of S&P CNX Nifty. NSE pioneered commencement of Internet Trading in February 2000, which led to the wide popularization of the NSE in the broker community. Being the first exchange that, in 1996, proposed exchange traded derivatives, particularly on an equity index, in India. After four years of policy and regulatory debate and formulation, the NSE was permitted to start trading equity derivatives Being the first and the only exchange to trade GOLD ETFs (exchange traded funds) in India. NSE has also launched the NSE-CNBC-TV18 media centre in association with CNBC-TV18

MARKETS

Currently, NSE has the following major segments of the capital market:

Equity Futures and Options Retail Debt Market Wholesale Debt Market

INDICES

NSE also set up as index services firm known as India Index Services & Products Limited (IISL) and has launched several stock indices, including:

20

S&P CNX Nifty CNX Nifty Junior CNX 100 (= S&P CNX Nifty + CNX Nifty Junior) S&P CNX 500 (= CNX 100 + 400 major players across 72 industries) CNX Midcap (introduced on 18 July 2005 replacing CNX Midcap 200)

CERTIFICATIONS

NSE also conducts online examination and awards certification, under its programmes of NSE's Certification in Financial Markets (NCFM). Currently, certifications are available in 19 modules, covering different sectors of financial and capital markets. Branches of the NSE are located throughout India.

DERIVATIVE

In finance, a security whose price is dependent upon or derived from one or more is underlying assets. The derivative itself is merely a contract between two or more parties. Its value is determined by fluctuations in the underlying asset. The most common underlying assets include stocks, bonds, commodities, currencies, interest rates and market indexes. Most derivatives are characterized by high leverage. 

Futures contracts, forward contracts, options and swaps are the most common types of derivatives. Because derivatives are just contracts, just about anything can be used as an underlying asset. There are even derivatives based on weather data, such as the amount of rain or the number of sunny days in a particular region.

Derivatives are generally used to hedge risk, but can also be used for speculative purposes. For example, a European investor purchasing shares of an American company off of an American exchange (using American dollars to do so) would be exposed to exchange-rate risk while holding that stock. To hedge this risk, the investor could purchase currency futures to lock in a specified exchange rate for the future stock sale and currency conversion back into euros.

TYPES OF TRADERS IN A DERIVATIVES MARKET

21

Hedgers, speculators and arbitrators are the types of traders in derivatives market.

HEDGERS:

Hedgers are those who protect themselves from the risk associated with the price of an asset by using derivatives. A person keeps a close watch upon the prices discovered in trading and when the comfortable price is reflected according to his wants, he sells futures contracts. In this way he gets an assured fixed price of his produce.

In general, hedgers use futures for protection against adverse future price movements in the underlying cash commodity. Hedgers are often businesses, or individuals, who at one point or another deal in the underlying cash commodity.

Take an example: A Hedger pay more to the farmer or dealer of a produce if its prices go up. For protection against higher prices of the produce, he hedges the risk exposure by buying enough future contracts of the produce to cover the amount of produce he expects to buy. Since cash and futures prices do tend to move in tandem, the futures position will profit if the price of the produce rise enough to offset cash loss on the produce.

SPECULATORS:

Speculators are some what like a middle man. They are never interested in actual owing the commodity. They will just buy from one end and sell it to the other in anticipation of future price movements. They actually bet on the future movement in the price of an asset.

They are the second major group of futures players. These participants include independent floor traders and investors. They handle trades for their personal clients or brokerage firms.

Buying a futures contract in anticipation of price increases is known as ‘going long’. Selling a futures contract in anticipation of a price decrease is known as ‘going short’. Speculative participation in futures trading has increased with the availability of alternative methods of participation.

Speculators have certain advantages over other investments they are as follows:

If the trader’s judgment is good, he can make more money in the futures market faster because prices tend, on average, to change more quickly than real estate or stock prices.

Futures are highly leveraged investments. The trader puts up a small fraction of the value of the underlying contract as margin, yet he can ride on the full value of the contract as it moves up and down. The money he puts up is not a down payment on the underlying

22

contract, but a performance bond. The actual value of the contract is only exchanged on those rare occasions when delivery takes place.

ARBITRATORS:

According to dictionary definition, a person who has been officially chosen to make a decision between two people or groups who do not agree is known as Arbitrator. In commodity market Arbitrators are the person who takes the advantage of a discrepancy between prices in two different markets. If he finds future prices of a commodity edging out with the cash price, he will take offsetting positions in both the markets to lock in a profit. Move over the commodity futures investor is not charged interest on the difference between margin and the full contract value

FINANCIAL SYSTEM

The financial system is one of the most important inventions of the modern society. The phenomenon of imbalance in the distribution of capital of funds exists in every economy system. There are areas or people with surplus funds as also those with a deficit. A financial system functions as an intermediary and a facilitates the flow of funds from the areas of surplus to those of deficit. A financial system is a composition of various institutions, markets, regulations and laws, practices, money, managers, analysts, transactions and claims and liabilities.

The financial system helps to determine both the cost and the volume of credit. The system can affect a rise in the cost of funds which adversely affects consumption, productions, employment and growth of the economy .similarly, lower ring the cost positive directions. Thus we find that a financial system has an impact on the basic existence of an economy and its citizens.

`The four main functions performed by a financial system are given below:

The saving function Liquidity function Payment function Risk function

23

FLOW OF FUNDS

1: THE SAVING FUNCTION:

The public saving finds their way into the hands of those in production through the financial system. Financial claims are issued in the money and capital markets, which promise future income flows. The funds in the hands of the producers result in production of better goods and services, increasing society’s standard of living when saving flows decline. However the growth of the investment and living standard begins to fall

2: LIQUIDITY FUNCTIONS:

Of all financial instruments, money is the form of deposits offers the least risk, but its value is almost eroded by inflations. That is why one always prefers to store the funds in financial instruments like stocks, bonds, debentures, etc. the compromise one makes in such investment is (1) that the risk involved is more and (2) the degree of liquidity conversion of the claims into money is less. The financial markets provide the investor the opportunity to liquidate the investments.

3: PAYMENT FUNCTION:

The financial system offers a very convenient mode of payment for goods and services.

Seekers of funds (mainly business firms and government)

Suppliers of funds (mainly household)

Flow of financial service

Income and financial claims

Flow of funds

24

The cheque system and credit card system are the easiest methods of payment in the economy .the cost and time for transaction are drastically reduced .in India ,while the cheque system of payment is widely practiced , the credit card system has entered only recently into urban India and is widely used in these areas for payments of consumption expenditure.

4: RISK FUNCTION:

The financial markets provide protection against life, health and income risks. These guarantees are accomplished through the sale of life and health insurance, and properly insurance policies .the financial markets provide immense opportunities for the investor to hedge himself against of reduce the possible risk involved in various investments.

FINANCIAL MARKETS

A financial market can be defined as the market in which financial assets are created or transferred in which financial assets represented a claim of the payment of a sum of money sometime in the future and periodic payment in the form of interest or dividend.

Financial markets could mean:

1. Organizations that facilitate the trade in financial securities. i.e. Stock exchanges facilitate the trade in stocks, bonds and warrants.

2. The coming together of buyers and sellers to trade financial securities. i.e. stocks and shares are traded between buyers and sellers in a number of ways including: the use of stock exchanges; directly between buyers and sellers etc.

In academia, students of finance will use both meanings but students of economics will only use the second meaning.

Financial markets can be domestic or they can be international.

TYPES OF FINANCIAL MARKETS

The financial markets can be divided into different subtypes:

25

Capital markets which consist of : Stock markets, which provide financing through the issuance of shares or common stock, and enable the subsequent trading thereof.

Bond markets , which provide financing through the issuance of Bonds, and enable the subsequent trading thereof.

Commodity markets, which facilitate the trading of commodities.

Money markets, which provide short term debt financing and investment.

Derivatives markets, which provide instruments for the management of financial risk.

Futures markets, which provide standardized forward contracts for trading products at some future date; see also forward market.

Insurance markets, which facilitate the redistribution of various risks.

Foreign exchange markets, which facilitate the trading of foreign exchange.

The capital markets consist of primary markets and secondary markets. Newly formed (issued) securities are bought or sold in primary markets. Secondary markets allow investors to sell securities that they hold or buy existing securities.

RAISING CAPITAL

To understand financial markets, let us look at what they are used for, i.e. what is their purpose?

Without financial markets, borrowers would have difficulty finding lenders themselves. Intermediaries such as banks help in this process. Banks take deposits from those who have money to save. They can then lend money from this pool of deposited money to those who seek to borrow. Banks popularly lend money in the form of loans and mortgages.

More complex transactions than a simple bank deposit require markets where lenders and their agents can meet borrowers and their agents, and where existing borrowing or lending commitments can be sold on to other parties. A good example of a financial market is a stock exchange. A company can raise money by selling shares to investors and its existing shares can be bought or sold.

The following table illustrates where financial markets fit in the relationship between lenders and borrowers:

Relationship between lenders and borrowers

Lenders Financial Intermediaries Financial Markets Borrowers

26

IndividualsCompanies

BanksInsurance CompaniesPension FundsMutual Funds

InterbankStock ExchangeMoney MarketBond MarketForeign Exchange

IndividualsCompaniesCentral GovernmentMunicipalitiesPublic Corporations

LENDERS

Many individuals are not aware that they are lenders, but almost everybody does lend money in many ways. A person lends money when he or she:

puts money in a savings account at a bank; contributes to a pension plan; pays premiums to an insurance company; invests in government bonds; or invests in company shares.

Companies tend to be borrowers of capital. When companies have surplus cash that is not needed for a short period of time, they may seek to make money from their cash surplus by lending it via short term markets called money markets.

There are a few companies that have very strong cash flows. These companies tend to be lenders rather than borrowers. Such companies may decide to return cash to lenders (e.g. via a share buyback.) Alternatively, they may seek to make more money on their cash by lending it (e.g. investing in bonds and stocks.)

BORROWERS

Individuals borrow money via bankers' loans for short term needs or longer term mortgages to help finance a house purchase.

Companies borrow money to aid short term or long term cash flows. They also borrow to fund modernization or future business expansion.

Governments often find their spending requirements exceed their tax revenues. To make up this difference, they need to borrow. Governments also borrow on behalf of nationalized industries, municipalities, local authorities and other public sector bodies. In the UK, the total borrowing requirement is often referred to as the public sector borrowing requirement (PSBR).

27

Governments borrow by issuing bonds. In the UK, the government also borrows from individuals by offering bank accounts and Premium Bonds. Government debt seems to be permanent. Indeed the debt seemingly expands rather than being paid off. One strategy used by governments to reduce the value of the debt is to influence inflation.

Municipalities and local authorities may borrow in their own name as well as receiving funding from national governments. In the UK, this would cover an authority like Hampshire County Council.

Public Corporations typically include nationalized industries. These may include the postal services, railway companies and utility companies.

Many borrowers have difficulty raising money locally. They need to borrow internationally with the aid of Foreign exchange markets.

DERIVATIVE PRODUCTS

During the 1980s and 1990s, a major growth sector in financial markets is the trade in so called derivative products, or derivatives for short.

In the financial markets, stock prices, bond prices, currency rates, interest rates and dividends go up and down, creating risk. Derivative products are financial products which are used to control risk or paradoxically exploit risk. It is also called financial economics.

CURRENCY MARKETS

Main article: Foreign exchange market

Seemingly, the most obvious buyers and sellers of foreign exchange are importers/exporters. While this may have been true in the distant past, whereby importers/exporters created the initial demand for currency markets, importers and exporters now represent only 1/32 of foreign exchange dealing, according to BIS.

The picture of foreign currency transactions today shows:

Banks and Institutions Speculators Government spending (for example, military bases abroad)

28

Importers/Exporters Tourists

ANALYSIS OF FINANCIAL MARKETS

Much effort has gone into the study of financial markets and how prices vary with time. Charles Dow, one of the founders of Dow Jones & Company and The Wall Street Journal, enunciated a set of ideas on the subject which are now called Dow Theory. This is the basis of the so-called technical analysis method of attempting to predict future changes. One of the tenets of "technical analysis" is that market trends give an indication of the future, at least in the short term. The claims of the technical analysts are disputed by many academics, who claim that the evidence points rather to the random walk hypothesis, which states that the next change is not correlated to the last change.

The scale of changes in price over some unit of time is called the volatility. It was discovered by Benoît Mandelbrot that changes in prices do not follow a Gaussian distribution, but are rather modeled better by Lévy stable distributions. The scale of change, or volatility, depends on the length of the time unit to a power a bit more than 1/2. Large changesCAPITAL MARKET

Capital market is an organized market for long term funds required , to meet the long term needs of business enterprises .

The capital market is the market for securities, where companies and governments can raise long-term funds. The capital market includes the stock market and the bond market. Financial regulators, such as the U.S. Securities and Exchange Commission, oversee the capital markets in their designated countries to ensure that investors are protected against fraud. The capital markets consist of the primary market, where new issues are distributed to investors, and the secondary market, where existing securities are traded.

STOCK EXCHANGE

Stock exchange is an organized market for industrial, financial and government market for industrial, financial and government securities.Stock exchange also helps the public sector undertaking and the government in raising long term loans. In brief, a stock market or stock exchange is a place where stocks and shares and other term securities are bought and sold as per certain rules and regulations.

FEATURES

It is an organized market for buying, selling and dealing in securities. It is privately owned by individuals.

29

It facilitates marketing in securities and also controls the trading activities. It operates as per well defined rules and regulation. It is a recognized association and is controlled by the state under a special act.

FUNCTIONS OF STOCK EXCHANGE

Ready and continuous market Evaluation of securities Encouraging capital formation Providing safety and securities in dealings Encouraging public borrowing Helps speculations Regulating company management

SERVICE OF THE STOCK EXCHANGE

Stock exchange provides various services to companies’ investor and the society at large in the following manner:

SERVICE TO COMPANIES

Companies raising their capital through stock exchange will find better response to their security issues.

Stock exchange provides a large marker for the listed securities. They enable the companies to collect adequate capital for formation, expansion, modernization or rationalization.

Stock exchange increases the credit standing and goodwill of the companies whose securities are listed.

Listed securities get quicker and better response are from investors. Market value of the securities is slightly more in relation to earning and property

values. This enhances the financial status and increase the bargaining power of the company in the collective ventures,merger,etc

SERVICES TO INVESTORS

Stock exchange, in fact, is a gift to the investors, who gain confidence by providing continuous marketing facilities.

Stock exchange guides the investors regarding the choice of securities to be bought.

30

Stock exchange maintains liquidity of securities by enabling the holders to sell them whenever they need liquid fund.

Stock exchange provides information about the value of securities to the investors through daily quotations of listed securities.

Stock exchange authorities properly evaluated the listed securities therefore purchasing of listed securities because less risky.

Stock exchange provides capital for industrial growth.

LISTING OF SECURITIES:

Listing of securities means including the name of the company security in the official list of the stock exchange for the purpose of trading. A stock exchange does not deal in the securities of all the companies .it selects certain securities for transaction; such securities are called listed securities.

REQUIREMENT FOR LISTING:

Certificate copies of M/A and A/A (Memorandum of association and Article of Association)

Consent of SEBI Director report Balance sheets Agreement with the managing director Agreement with underwriters Statement showing distribution of shares

RELATION OF THE STOCK MARKET TO THE MODERN FINANCIAL SYSTEM

The financial system in most western countries has undergone a remarkable transformation. One feature of this development is disintermediation. A portion of the funds involved in saving and financing flows directly to the financial markets instead of being routed via banks' traditional lending and deposit operations. The general public's heightened interest in investing in the stock market, either directly or through mutual funds, has been an important component of this process. Statistics show that in recent decades shares have made up an increasingly large proportion of households' financial assets in many countries. In the 1970s, in Sweden, deposit accounts and other very liquid assets with little risk made up almost 60 per cent of households' financial wealth, compared to less than 20 per cent in the 2000s. The major part of this adjustment in financial portfolios has gone directly to shares but a good deal now takes the form of various kinds of institutional investment for groups of individuals, e.g., pension funds, mutual funds, hedge funds, insurance investment of premiums, etc. The

31

trend towards forms of saving with a higher risk has been accentuated by new rules for most funds and insurance, permitting a higher proportion of shares to bonds. Similar tendencies are to be found in other industrialized countries. In all developed economic systems, such as the European Union, the United States, Japan and other developed nations, the trend has been the same: saving has moved away from traditional (government insured) bank deposits to more risky securities of one sort or another

THE STOCK MARKET, INDIVIDUAL INVESTORS, AND FINANCIAL RISK

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. 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 overtaking 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.

This is a quote from the preface to a published biography about the long-term value-oriented stock investor Warren Buffett. Buffett began his career with $100, and $105,000 from seven limited partners consisting of Buffett's family and friends. Over the years he has built himself a multi-billion-dollar fortune. The quote illustrates some of what has been happening in the stock market during the end of the 20th century and the beginning of the 21st.

32

COMMODITY FUTURES TRADING THROUGH:

COMMODITY MARKET

India has a deep ingrained knowledge in commodity trading (and particularly forward trading in commodities), especially in the interior heartland. For last 40 years or so, such forward (futures) trading was banned in the country for a variety of reasons and it is being revived now. The ban has meant that two generations have lost touch with the trading skills and the related knowledge levels in the commodity space. Fortunately much of the skill sets have migrated to stock exchanges.

In these intervening years, some regional exchanges specializing in specific commodities, where the bans were lifted, have carried on the baton. Also large informal trading, primarily by the speculative segment of the universe of market participants has remained. This has led to a mindset in the common man in the country that commodity exchanges are purely speculative in nature. The hedging and price discovery functions that they perform are largely ignored today by the cross section of the population.

WHY COMMODITY MARKET?

Commodity derivatives records high volumes in the markets the world over compared to equity derivatives. In an era where risks to investments are on the rise and India being predominantly an agrarian economy, needs to switch to commodity derivatives to top the list of developed nations.

Indian markets have recently thrown open a new avenue for retail investors and traders to participate: commodity derivatives. For those who want to diversify their portfolios beyond shares, bonds and real estate, commodities are one of the best options.   Commodities actually offer immense potential to become a separate asset class for market-savvy investors, arbitrageurs and speculators. Commodities are easy to understand and are based on the fundamentals of demand and supply. Retail investors should understand the risks and advantages of trading in commodities futures before taking a leap. Historically, prices in commodities futures have been less volatile compared with equity and bonds, thus providing an efficient portfolio diversification option.  Like any other market, the one for commodity futures plays a valuable role in information pooling and risk sharing. The market mediates between buyers and sellers of commodities thus making the underlying market more liquid.    

UNDERSTANDING THE COMMODITIES MARKETS

33

34

PROFILE OF BROKING HOUSE IN THE STOCK MARKET

US The Karvy group was formed in 1983 at Hyderabad, India. Karvy ranks among the top player in almost all the fields it operates. Karvy Computershare Limited is India’s largest Registrar and Transfer Agent with a client base of nearly 500 blue chip corporate, managing over 2 crore accounts. Karvy Stock Brokers Limited, member of National Stock Exchange of India and the Bombay Stock Exchange, ranks among the top 5 stock brokers in India. With over 6,00,000 active accounts, it ranks among the top 5 Depositary Participant in India, registered with NSDL and CDSL. Karvy Comtrade, Member of NCDEX and MCX ranks among the top 3 commodity brokers in the country. Karvy Insurance Brokers is registered as a Broker with IRDA and ranks among the top 5 insurance agent in the country. Registered with AMFI as a corporate Agent, Karvy is also among the top Mutual Fund mobilizer with over Rs. 5,000 crores under management. Karvy Realty Services, which started in 2006, has quickly established itself as a broker who adds value, in the realty sector. Karvy Global offers niche off shoring services to clients in the US.

35

Karvy has 575 offices over 375 locations across India and overseas at Dubai and New York. Over 9,000 highly qualified people staff Karvy.

MEANS OF FINANCING

Financing a company through the sale of stock in a company is known as equity financing. Alternatively, debt financing (for example issuing bonds) can be done to avoid giving up shares of ownership of the company. Unofficial financing known as trade financing usually provides the major part of a company's working capital (day-to-day operational needs). Trade financing is provided by vendors and suppliers who sell their products to the company at short-term, unsecured credit terms, usually 30 days. Equity and debt financing are usually used for longer-term investment projects such as investments in a new factory or a new foreign market. Customer provided financing exists when a customer pays for services before they are delivered, e.g. subscriptions and insurance

MARKET SHARE ANALYSIS

Security Bond

Stock

Common stocks

Preferred stocks

Share

Mutual funds

Par value v s. Market value

Bullish v s. Bearish

OTHER BENEFITS OF INVESTING IN SHARES?

36

Because they can make big money on it. Compared to your investments in fixed deposits in banks it makes more profits, but the bad news is that you are also expected to bear the losses, if any.

1) Possibility of high returns 2) Easy liquidity

3) Unbeatable tax benefits

4) Income from dividends

SO HOW DOES ONE BUY SHARES?

There are basically two ways in which you can invest in shares:

Purchase shares from the primary market (i.e. IPO's) Trade in the Secondary Market, i.e. Stock exchanges

WHO SELECTS THESE STOCKS?

They are selected by the Index committee.

Some of the criteria they follow include:

1) Market capitalization.2) Liquidity.

3) Continuity.

4) Industry representation.

5) Listed history

COMPUTATION OF STOCK INDEX:

A stock market may either be a price index or a wealth index. In India most of the indices are using wealth index for computation of stock market.

Company No. of shares

Market Price on 09/02/06

Market cap(Rs.)

Market Price on 18/02/06

Market cap(Rs.)

TATA 10 20/- 200/- 30/- 300/-

37

INFOSYS 20 30/- 600/- 40/- 800/-

IBM 20 100/- 2000/- 150/- 3000/-

TOTAL MARKET CAP

2800/- 4100/-

Face value=Rs.10/-Base value=100/-

Index present value=(100*4100)/2800= 146.428

K O T A K S E C U R I T I E S :

Kotak securities ltd is India leading stock broking house with a market share of close to 9% as on 31 march 2007. kotak securities ltd has been the largest in IPO distribution.The company has a full fledged research division involved in macro economic studies sect oral research and company specific equity research combined with a strong and well networked sales force which helps deliver current and up to date market information and news

Kotak securities ltd is also a depository participant with national securities depository limited and central depository service limited .providing dual benefits services where in the investor can use the brokerage services of the company for executing the transactions and the depository service for settling them.

Kotak securities have 813 outlets servicing more than 315000 customers and a coverage of 277 cities. Kotak securities com the online division of kotak securities limited offers internet broking services and also online IPO and mutual fund investment A Kotak security limited manages assets around 2300 crores of assets under management. The portfolio management service provides top class service catering to the high end of the market. Portfolio management from kotak securities comes as an answer to those who would like to grow from exponentially on the crest of the stock market, with the backing of an expert.

38

Sharekhan, the retail broking arm of SSKI group and one of the largest stock broking house in the country has won the prestigious awaaz consumer vote awards 2005 for the most preferred stock broking brand in India, in the investment advisors category

Share khan equity related services include trade execution on BSE,NSE derivatives commodities depository services online trading and investment advice ,.sharekhan online trading and investment site www.sharekhan.com was launched in 2000 . Sharekhan Bag round network includes over 250 centers across 123 cities in India and having around 120000 customers and equal number of demat customers.

Sharekhan won the award by vote of customer around the country, as part of India largest consumer study cover 7000 respondents 21 product and service across 21 major cities. the study initiated by awaaz India first dedicated consumer channel and member of the world wide CNBC network and ac Nielsen org marg was aimed at understanding the brand preference of the consumer and to decipher what are the most important loyalty criteria for the consumer in each vertical

In order to select the award recipient spontaneous responses rather than prompted responses were garnered with an intention to glean unbiased preferences.

The reason behind the preferences for brands were unveiled by examines the following:

Tangible features of product /service Softer, intangible features like imagery, equity driving preference Tactical measures such as promotional /pricing schemes

The India Infoline group, comprising the holding company, India Infoline Limited and its wholly-owned subsidiaries, straddle the entire financial services space with offerings ranging from Equity research, Equities and derivatives trading, Commodities trading, Portfolio Management Services, Mutual Funds, Life Insurance, Fixed deposits, GoI bonds and other small savings instruments to loan products and Investment banking. India Infoline also owns and manages the websites http://www.indiainfoline.com/and http://www.5paisa.com/

39

The company has a network of 758 business locations (branches and sub-brokers) spread across 346 cities and towns. It has more than 800,000 customers

India Infoline Limited is listed on both the leading stock exchanges in India, viz. the Stock Exchange, Mumbai (BSE) and the National Stock Exchange (NSE) and is also a member of both the exchanges. It is engaged in the businesses of Equities broking, Wealth Advisory Services and Portfolio Management Services. It offers broking services in the Cash and Derivatives segments of the NSE as well as the Cash segment of the BSE. It is registered with NSDL as well as CDSL as a depository participant, providing a one-stop solution for clients trading in the equities market. It has recently launched its Investment banking and Institutional Broking business.

Bonanza is a leading Financial Services & Brokerage House with acknowledged industry Leadership in execution and clearing services on Exchange Traded Derivatives and cash market products.

Key elements that place Bonanza amongst the leading Brokerage Houses and make it the preferred service provider for value based financial services are:

A Client-driven foundation and strategy committed to client-specific investment needs and objectives. Integrated and innovative use of Technology enabling clients to trade offline, online and Strategic tie-ups with latest technology partners to facilitate trading access and direct processing across more than 900 Branches spread over 310 cities . Client-focused philosophy backed by memberships of all principal Indian Stock and Commodity Exchanges makes Bonanza a preferred service provider in the Industry for value based services.  

40

Emkay offers futures trading through "Emkay Corporate Services (P) Ltd.". We have membership with two of the major Commodity exchanges of the country.

Multi Commodity Exchange of India Ltd, Mumbai (MCX) National Commodity and Derivative Exchange, Mumbai (NCDEX)

Large numbers across the country participate in the futures market through Emkay's rapidly expanding online trading terminal network extending to even remote areas. Local, national and international agri-information is disseminated through the company's large branch network. Seminars, free in house literature and interactive site sessions raise awareness levels on the futures market. Consequently, large numbers of informed participants enter the trading process resulting in increased volumes and market efficiency.

Motilal Oswal Securities Ltd. 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.

Today they are 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

41

They have a diversified client base that includes retail customers (including High Net worth Individuals), mutual funds, foreign institutional investors, financial institutions and corporate clients. They are headquartered in Mumbai and as of June 30, 2008, had a network spread over 450 cities and towns comprising 1,496 Business Locations operated by their Business Partners and them. As at June 30, 2008, they had 486,648 registered customers.

Religare Enterprises Limited (REL), is one of the leading integrated financial services groups of India. REL’s businesses are broadly clubbed across three key verticals, the Retail, Institutional and Wealth spectrums, catering to a diverse and wide base of clients.

REL offers a multitude of investment options and a diverse bouquet of financial services and has a pan India reach in more than 1550 locations across more than 460 cities and towns.

As part of its recent initiatives, the group has also started expanding globally and has acquired London’s oldest brokerage & investment firm, Hichens, Harrison & Co. plc. Following this acquisition Religare now proposes to operate out of 10 countries. With a view to expand, diversify and introduce offerings benchmarked against global best practices, Religare has entered into joint ventures with the global major- Aegon for its Asset Management and Life Insurance businesses in India.

Religare’s wealth management subsidiary is now rechristened as Religare Macquarie Wealth Management Limited, following a joint venture with the Australia based financial services major, Macquarie Bank. Religare has also partnered with Vistaar Entertainment to launch India’s first Film Fund.

The vision is to build Religare as a globally trusted brand in the financial services domain and present it as the ‘Investment Gateway of India’. All employees of the group guided by an experienced and professional management team are committed to providing financial care, backed by the core values of diligence and transparency.

42

ABOUT INDIABULLS

Indiabulls is India’s leading Financial Services and Real Estate company having over 640 branches all over India. Indiabulls serves the financial needs of more than 4,50,000 customers with its wide range of financial services and products from securities, derivatives trading, depositary services, research & advisory services, consumer secured & unsecured credit, loan against shares and mortgage & housing finance. With around 4000 Relationship Managers, Indiabulls helps its clients to satisfy their customized financial goals. Indiabulls through its group companies has entered Indian Real Estate business in 2005. It is currently evaluating several large-scale projects worth several hundred million dollars.

“Indiabulls Financial Services Ltd is listed on the National Stock Exchange, Bombay Stock Exchange and Luxembourg Stock Exchange. The market capitalization of Indiabulls is around USD 6,300 million (31st December, 2007). Consolidated net worth of the group is around USD 905 million (31st December, 2007). Indiabulls and its group companies have attracted more than USD 800 million of equity capital in Foreign Direct Investment (FDI) since March 2000. Some of the large shareholders of Indiabulls are the largest financial institutions of the world such as Fidelity Funds, Goldman Sachs, Merrill Lynch, Morgan Stanley and Farallon Capital.

Business of the company has grown in leaps and bounds since its inception. Revenue of the company grew at a CAGR of 159% from FY03 to FY07. During the same period, profits of the company grew at a CAGR of 184%.

Indiabulls became the first company to bring FDI in Indian Real Estate through a JV with Farallon Capital Management LLC, a respected US based investment firm. Indiabulls has demonstrated deep understanding and commitment to Indian Real Estate market by winning competitive bids for landmark properties in Mumbai and Delhi.”Indiabulls Financial Services Ltd

43

AnandRathi is a leading full service securities firm providing the entire gamut of financial services. The firm, founded in 1994 by Mr. AnandRathi, 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. The firm's philosophy is entirely client centric, with a clear focus on providing long term value addition to clients, while maintaining the highest standards of excellence, ethics and professionalism. The entire firm activities are divided across distinct client groups: Individuals, Private Clients, Corporate and Institutions and was recently ranked by Asia Money 2006 poll amongst South Asia's top 5 wealth managers for the ultra-rich. In year 2007 Citigroup Venture Capital International joined the group as a financial partner

44

RESEARCH OBJECTIVE

STATEMENT OF PROBLEM

Are people really getting benefits from the various predictions being made by the analysis?

Objective of the research project

To understand the importance of economic analysis of firm as a producing unit To learn the role of money, and banking system. To understand the function of financial system. To understand the financial, money and capital market. To explain stock exchange. To explain analysis of equity data. To review the concept and technique of price and trend analysis To asses the advantage and disadvantage of stock prediction

45

If possible to design how stock prediction technique. To make the people move aware about market

46

RESEARCH METHODOLOGY AND LIMITATION

RESEARCH DESIGN

Problem is complex and real in nature, lot of efforts have undergone for the research by meeting various people and asking them about their experience .various people have undergone huge losses in the stock market lot of material has been collected from the internet.

47

The research methodology consisted following steps:

1. DEFINING THE OBJECTIVES:

The aim of this project as has already been mentioned was to “sales and analysis of mutual funds.” For this our research contains two parts-

a. To sale the products we have to first generate database on the basis of marketing research.

b. Analysis of different schemes of share market.

2. DEVELOPING THE RESEARCH PLAN:

This step called for decision on the data sources, sampling plan and contact methods.

DATA SOURCES

Data was collected from primary and secondary data. The various sources are:

i. PRIMARY DATA

This type of data does not exist; it is originated by primary sources like personal interaction or field back forms, questionnaires that act as tools for collecting data.

ii. SECONDARY DATA

This type of data already exists, and used to generate information as required. We collect the secondary data through Internet, books, journals and magazines of the company, various company broachers, talking with people.

RESEARCH APPROACH

The research approach adopted here was the survey method. But other approaches also used such as observation research.

3. COLLECTING THE INFORMATION

With respect to primary and secondary data, the information is collected. Primary data tells us present scenario of financial market. Secondary data means that to get the data from the internet, company magazines, talking with people and convince.

48

DATA COLLECTION:

Base on the above questionnaire data are collected by survey methods.

1. SAMPLING METHOD:

The sampling method, which is adopted, is Random Sampling.

2. DATA ANALYSIS:

The Analysis of survey has been done on % basis.

DATA COLLECTION

PRIMARY DATA

The primary data to be selected was based upon the response of the respondents to the questionnaire designed. The questionnaire designed was given to us from our immediate boss... The questionnaire consists of closed ended questions.

49

A part of Questionnaire was targeted to know the personal details of the respondents. Another part comprised of the self-designed questionnaire and will consist of closed ended questions with every question having its own importance and meaning.

SECONDARY DATA

The secondary data was collected by referring through web sites, and the final data was analyzed systematically to achieve the desired result.

DATA ANALYSIS

For analyzing the data obtained after conducting the survey, percentage method was used. All the views and data obtained were also interpreted as clearly as possible.

STUDY

The present investigation is a descriptive and marketing type of study undertaken to estimate the comparative study of share market analysis. The present study identifies views of customers & analysis of share market along with the self-analysis.

SAMPLE SIZE

For the purpose of analysis a sample size of respondents was selected. The target group of the respondent was job holders and an earning person whatever his/her age may be. The sample size taken was 60.

SAMPLING METHOD

The sampling method chosen for the project was “Random Sampling”. This type of sampling is also known as chance sampling or probability sampling where each and every item in the population has an equal chance of inclusion in the sample and each one of the possible samples. This procedure gives each item an equal probability of being selected.

COMPARATIVE ANALYSIS AND INTERPRETATIONS

ANALYSIS OF MALES AND FEMALES SURVEYED:

50

BRIEF ANALYSIS

The diagram helped us in judging the number and percentage of males and females after conducting the survey; it was found that out of customers were males and was females. Thus, we came to know that 73% of the users were males and the remaining 27% were females.

LIMITATION OF STUDY

51

1. lot of efforts have been undergone to improve the predication techniques .like earlier

there was only fundamental analysis being used but now technical analysis has come into

existence

2. Once the people who are involved in it. They play it like gambling and they think that

its same it is difficult to change their mindset.

3. It’s difficult to make people aware about the market knowledge it is very vast.

4. Last of technical thing are involved in it difficult for everyone to go through it.

52

CONCLUSION AND SUGGESTIONS

Today various people are investing in stock without having proper knowledge about it , they only listen to their broker sayings and in the end face huge losses , stock predication is very difficult or say impossible no one can predict the future as has been brilliant shown in the Hollywood movie paycheck

53

If people know the truth and have knowledge about the market than can take some risks. Stock can’t be predicted no one is sure what going to happen the next movement it’s a much volatile market. If someone is sure about the up trepanned than why the stop loss being set if because there is no surety

Therefore, people should have knowledge about the market than they should enter it as it would lead in minimizing the losses and playing a more safe game of investing money. More reliable techniques should come to facilitate people and it should be simple also.

54

55