strategies of a stock broker

MARKETING STRATEGIES AT SSJ FINANCE

REF NO: ……………………

DATE: …………………….

COMPLETION LETTER

TO,THE ADVENTIST COLLEGE,ATHWALINESSURAT.

TO WHOM EVER IT MAY CONCERN

SUB-COMPLETION OF TRAINING

WE, hereby confirm that Ms. PRATIKSHA BAID has undergone the training and has gained all the required knowledge and information needed for this project at ssj finance for 210 hours, that is from 15-4-2012 to 30-5-2012. Therefore we certify her as a member of our company.

HEREBY, STATING THE CONFIRMATION

THANKING YOUSSJ FINANCE

BRANCH HEAD.

C-402, EMPIRE STATE BUILDING NEAR UDHNA DARWAZA RING ROAD, SURAT -395002PHONE-9979915208 E-MAIL- [email protected]

A

METAS OF SEVENTH DAY ADVENTIST COLLEGE

mailto:[email protected]


Summer Project

On

“MARKETING STRATEGIES OF STOCK BROKER”

At

SSJ FINANCE AND SECURITIES PVT. LTD.

SUBMITTED IN PRACTICAL FULFILLMENT FOR THE REQUIREMENT OF THE MASTER’S DEGREE OF BUSINESS

ADMINISTRATION

Prepared By

PRATIKSHA BAID

F.Y.M.B.A

I.D NO: GB-047

[MARKETING]

Under the guidance of

MR. RITESH KHATWANI SIR

MR. ZACHARIAH SAMUEL SIR

Submitted To

METAS OF SEVENTHDAYADVENTISTCOLLEGE

Athwalines

Surat

2011-2012



PREFACE

Indian Capital Market is seeing a bullish trend since few quarters. It had touched the level

which it had never reached earlier. In a very short duration of time sensex touched 20000

points . Still people are very bullish for the market and expecting sensex to reached

25000 points.

Current scenario is that market is over performing than then it actual potential and where

major investors are just attracted by the high short term returns and ignoring the actual

facts and figures of the company. In such condition it became very necessary that

investor don’t work on “greater fool theory” rather invest in the company whose

fundamentals are strong by doing proper analysis and invest keeping long term

perspective.

This project involves fundamental analysis of SSJ Finance and Securities Pvt. Ltd.

The project is done for the partial requirement of fulfillment of degree of MASTER’S of

Business Administration (M.B.A). This project is done under SSJ finance and securities

Pvt. Ltd., Surat.

Sincere efforts have been made to make this project live up to the expectation to

Department of MARKETING where this project is to be submitted.



DECLARATION

I undersigned, PRATIKSHA BAID declare that this project is the result of my own

training work carried out during May, 2012 and has not being previously submitted

to any university/institutions for any other purpose by any other person.

I will not use this project report in future as submission to any other

university/institution without written permission of my guide.

I also promise not to allow any person to copy any part/full material of this report in

any form.

Yours faithfully,

Pratikisha Baid



ACKNOWLEDGEMENT

I take this opportunity to thank all those who have contributed their support in

preparing this project. Firstly I would like to express my deep sense of gratitude

towards METAS OF ADVENTIST COLLEGE, SURAT for providing me this

opportunity to study STOCK MARKET in depth as a part of course curriculum.

Secondly I would like to thank president of my college MR.JEREMIAH SIR for

allowing me to do my project on this topic. I would also like to take an opportunity

to thank my mentor MR.MOHAN RAO SIR for guiding me throughout my project

work.

Working on such a project where information is quite enormous and unacquainted

to me required guidance at each and every stage. I am highly thankful to MR.AMIT

DWIVEDI, the business development manager of SSJ FINANCE & SECURITIES

PVT LTD. for his continuous direction and guidance while preparing this project

and also for sharing his rich experience for the content of this project.

Last but not the least; I am also grateful to my parents, colleagues and friends

whose continuous support has always boosted my moral towards working on this

report.

Thank you



INDEX

SR. No TOPIC PAGE NO

1 INDUSTRY PROFILE

INTRODUCTION OF SSJ FINANCE AND SECURITIESPVT

LTD.

RANKING OF INDUSTRY.

COMPETITORS OF SSJ FINANCE AND SECURITIES

BOMBAY STOCK EXCHANGE

NATIONAL STOCK EXCHANGE

ECONOMIC UPS AND DOWNS

WHAT DO SHARE MARKETS DO?

INDIAN STOCK MARKET

5 YEAR PLANS OF INDIA

MARKET VOLUME

MARKET WATCH(GLOBAL MARKET)

5-27

2 COMPANY PROFILE

PAST,PRESENT AND FUTURE OF SSJ

STRENGTH OF COMPANY

TRAINING AND DEVELOPMENT

REASONS FOR SUCCESS

COMPANYS VISION

BUSINESS PHILOSOPHY

COMPANYS VALUE

MANAGEMENT TEAM

CORE BUSINESS

MEMBERSHIP

QUALITY ASSURANCE POLICY

CRM POLICY

LEADERSHIP MODEL

CODE OF ETHICS

DISTRIBUTION MODEL

INFRASTRUCTURE

REGIONAL OFFICES

28-79



FUTURE PLANS

COMPANY NOW

HR INFORMATION IN DETAIL

FINANCIAL INFORMATION IN DETAIL

DEALINGS OF COMPANY

3 RESEARCH METHODOLOGY

SAMPLE DESIGN

TYPES OF DATA

DATA COLLECTION TOOLS

SURVEY METHODS

RESEARCH INITIATIVES

WHEN &WHY RESEARCH?

ANGEL RESEARCH STRENGTH

RESEARCH AND INVESTMENT ADVISORY

RESEARCH PRODUCTS

RESEARCH PROCESS

TECHNICAL RESEARCH CALLS

80-88

4 ANALYSIS OF DATA 89-104

5 FINDINGS 105

6 CONCLUSION 106

7 SUGGESSIONS 107

8 GLOSSARY 108-109

9 BIBLOGRAPHY 110

10 ANNEXURE 111-117



INDUSTRY PROFILE

INTRODUCTION TO THE INDUSTRY

INDIAN EQUITY MARKET:-

The Indian Equity Market is also known as Indian share market or Indian stock market.

The Indian market of equities is transacted on the basis of two major stock indices,

National Stock Exchange of India Ltd. (NSE) and The Bombay Stock Exchange (BSE).

Indian Equity Market at present is a lucrative field for the investors and investing in

Indian stocks are profitable for not only the long and medium-term investors, but also the

position traders, short-term swing traders and for intra-day traders. In terms of market

capitalization, there are over 5000 companies in the BSE chart list. Generally the bigger

companies are listed with the NSE and the BSE, but there is the OTCEI or the Over the

Counter Exchange of India, which lists the medium and small sized companies. There is

the SEBI or the Securities and Exchange Board of India which supervises the functioning

of the stock markets in India.

The growing financial capital markets of India being encouraged by domestic and foreign

investments is becoming a profitable business more with each day. If all the economic

parameters are unchanged Indian Equity Market will be conducive for the growth of

private equities and this will lead to an overall improvement in the Indian economy.



THE INDIAN CAPITAL MARKET:-

The function of the financial market is to facilitate the transfer of funds from

surplus sectors (lenders) to deficit sectors (borrowers). Normally, households have

investible funds or savings, which they lend to borrowers in the corporate and public

sectors whose requirement of funds far exceeds their savings. A financial market consists

of investors or buyers of securities, borrowers or sellers of securities, intermediaries and

regulatory bodies. Financial market does not refer to a physical location. Formal trading

rules, relationships and communication networks for originating and trading financial

securities link the participants in the market.

PRIMARY MARKET

Primary market refers to the long term flow of funds from the surplus sector to the

government and corporate sector (through primary issue) and to banks and non bank

financial intermediaries (through secondary issues).Primary issues of the corporate sector

lead to capital formation (creation of net fix asset and incremental change in inventories)

thus primary market is again sub divided into:

Public issue

Right issue

Private placement

Professional allotment

SECONDARY MARKET

Secondary market is a market for outstanding securities. An equity instrument, being an

eternal fund, provides an all-time market while a debt instrument with a defined maturity

period, is traded at the secondary market till maturity. Unlike primary issues in the

primary market which result in capital formation, the secondary market facilities only

liquidity



and marketability of outstanding debt and equity instruments. The secondary market

contributes to economic growth by channelising funds into the most efficient channel

through the process of disinvestment to reinvestment. The secondary market also provide

instant valuation of securities made possible by changes in the internal environment, that

is , through companywide and industry wide factors. Such a valuation facilities the

measurement of the cost of capital and rate of return of economic entities at the micro

level.

For trading in issue of corporate and financial intermediaries, there are:

Recognized stock exchanges,

National stock exchange of India limited (NSE)

ORGANIZED MONEY MARKET

Indian financial system consists of money market and capital market. The money

market has two components - the organized and the unorganized. The organized market is

dominated by commercial banks. The other major participants are the Reserve Bank of

India, Life Insurance Corporation, General Insurance Corporation, Unit Trust of India,

Securities Trading Corporation of India Ltd. and Discount and Finance House of India,

other primary dealers, commercial banks and mutual funds. The core of the money

market is the inter-bank call money market whereby short-term money borrowing/lending

is affected to manage temporary liquidity mismatches.

UN- ORGANIZED MONEY MARKET

Despite rapid expansion of the organized money market through a large network

of banking institutions that have extended their reach even to the rural areas, there is still

an active unorganized market. It consists of indigenous bankers and moneylenders. In the

unorganized market, there is no clear demarcation between short-term and long-term

finance and even between the purposes of finance.



SECURITIES AND EXCHANGE BOARD OF INDIA

With the objectives 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. The practice of allocation of

resources among different competing entities as well as its terms by a central authority

was discontinued. The secondary market overcame the geographical barriers by moving

to screen-based trading. Trades enjoy counter party guarantee. Physical security

certificates have almost disappeared. The settlement period has shortened to three days.

The following paragraphs discuss the principal reform measures undertaken since 1992.

A major step in the liberalization process was the repeal of the Capital Issues (Control)

Act, 1947 in May 1992. With this, Government's control over issue of capital, pricing of

the issues, fixing of premium and rates of interest, on debentures, etc., ceased. The office,

which administered the Act, was abolished and the market was allowed to allocate

resources to competing uses and users. Indian companies were allowed access to

international capital market through issue of ADRs and GDRs. However, to ensure

effective regulation of the market, SEBI Act, 1992 was enacted to empower SEBI with

statutory powers for (a) protecting the interests of investors in securities, (b) promoting

the development of the securities market, and (c) regulating the securities market. Its

regulatory jurisdiction extends over corporates in the issuance of capital and transfer of

securities, in addition to all intermediaries and persons associated with securities market.

SEBI can specify the matters to be disclosed and the standards of disclosure required for

the protection of investors in respect of issues.



MAJOR STOCK PLAYERS

Eighteen Stock Exchanges in the World: Market Capitalization & Year-to-date Total

Turnover at the end of May 2010

Region Stock Exchange Market Value

(millions USD)

Total Share Turnover

(millions USD)

Africa Johannesburg Securities Exchange 605,040.2 117,424.7

Americas NASDAQ 2,773,684.3 12,256,704.3

Americas São Paulo Stock Exchange 920,263.9 191,926.1

Americas Toronto Stock Exchange 1,347,674.0 490,912.4

Americas New York Stock Exchange 9,574,066.6 7,986,835.8

Asia-Pacific Australian Securities Exchange 839,062.7 273,205.9

Asia-Pacific Bombay Stock Exchange 1,032,589.6 83,906.6

Asia-Pacific Hong Kong Stock Exchange 1,773,002.2 519,465.7

Asia-Pacific Korea Exchange 640,357.6 618,607.8

Asia-Pacific National Stock Exchange of India 968,815.1 242,641.7

Asia-Pacific Shanghai Stock Exchange 2,069,937.1 1,685,862.2

Asia-Pacific Shenzhen Stock Exchange 563,103.3 880,744.6

Asia-Pacific Tokyo Stock Exchange 3,102,492.9 1,561,888.8

Europe Euronext 2,262,751.6 742,885.6

EuropeFrankfurt Stock Exchange (Deutsche

Börse1,132,126.2 1,101,064.6

Europe London Stock Exchange 2,204,320.0 1,483,263.3


http://en.wikipedia.org/wiki/Stock_exchange





Region Stock Exchange Market Value

(millions USD)

Total Share Turnover

(millions USD)

EuropeMadrid Stock Exchange (Bolsas y

Mercados Españoles1,084,606.4 591,217.3

Europe Milan Stock Exchange 554,613.9 341,421.1

Opportunity in Future in India – Will the Indian Stock Market

still going on and on i.e. BOOM period in Indian Stock Market still

alive?

India just keeps getting better and better. The economy is growing rapidly surpassing

some of Asia’s biggest economies. India is now becoming the third largest country in

Asia economically. It has grown so much and is expected to continue to grow like this for

a long time. The Indian Government is doing everything it can do to propel the growth

rates in the Indian Industry, primarily in: India Stock Market, Indian Companies, India’s

manufacturing index, India Business Sector, India’s Company sector and other India

investment industries.

The yearly salaries are rising and the command to buy is under the command to spend.

The Investment GDP ratio is at a high. It is now over 30 percent and between the years

1990 and 2004 the average was only 25 percent. It has been said that, once it reaches 30

percent, it is going to take off rapidly. So India is expected to move rapidly.

The down side to India’s big movement is that there is a limit to how high it can go. India

has grown so much, making the costs of everything go up so frequently. It can turn into

the most expensive country in the world. The companies are now working above their

finest ability.

A lot of professionals say that this is a problem, but that people over-exaggerate while

talking about it. Their main worry about India is that the roads are so bad in India and the



amount of terrible roads may increase, but the government is addressing this issue. The

prices of cement, used to make good roads, have also gone up a lot with the prices of

everything else. There are so many road related projects that need to be done soon.

A lot of people try to People undervalue India’s accomplishment in growth. The growth

rates are very good and it wouldn’t be wrong for people to overvalue it. India has created

the best growth story that happen over a long time. Although India is growing, there can

still be corrections in the market. No matter how well a country is doing, there is always

something that can be fixed. Some say that they would like to wait until the market is

fixed to invest.

INTRODUCTION OF INDUSTRY INDIA LEVEL



A BRIEF HISTORY OF STOCK EXCHANGES:-



Do you know that the world's foremost market place “New York Stock Exchange”

(NYSE), started its trading under a tree (now known as 68 Wall Street) over 200 years

ago? Similarly, India's premier stock exchange Bombay Stock Exchange (BSE) can also

trace back its origin to as far as 125 years when it started as a voluntary non-profit

making association.

You hear about it any time it reaches a new high or a new low, and you also hear about it

daily in statements like 'The BSE Sensitive Index rose 5% today'. Obviously, stocks and

stock markets are important. Stocks of public limited companies are bought and sold at a

stock exchange. But what really are stock exchanges?

Known also as News on the stock market appears in different media every day. The stock

market or bourse, a stock exchange is an organized market place for securities stock,

bonds, options) featured by the centralization of supply and demand for the transaction

oforders by member brokers, for institutional and individual investors.

BSE



The Stock Exchange, Mumbai, popularly known as "BSE" was established in 1875 as

"The Native Share and Stock Brokers Association". It is the oldest one in Asia, even

older than the Tokyo StockExchange, which was established in 1878. It is a voluntary

non-profit making Association of Persons (AOP) and is currently engaged in the process

of converting itself into demutualized and corporate entity. It has evolved over the years

into its present status as the premier Stock Exchange in the country. It is the first Stock

Exchange in the Country to have obtained permanent recognition in 1956 from the Govt.

of India under the Securities Contracts(Regulation) Act, 1956



NSE

NSE was incorporated in 1992 and was given recognition as a stock exchange in April

1993. It started operations in June 1994, with trading on the Wholesale Debt Market

Segment. Subsequently it launched the Capital Market Segment in November 1994 as a

trading platform for equities and the Futures and Options Segment in June 2000 for

various derivative instruments.

REGIONAL STOCK EXCHANGE



Comparative Assessment of different companies



SHCIL (STOCK HOLDING CORPORATION OF INDIA LIMITED)

Stock Holding Corporation of India Limited (SHCIL) was promoted by public financial

institutions and insurance majors like IDBI, UTI, ICICI, LIC, GIC and its subsidiaries,

IFCI and IIBI.

SHCIL was incorporated as a public limited company on July 28, 1986.

SHCIL provides depository, post trading, custodial services, securities lending to

institutional investors and retail investors.

Other auxiliary services provided by SHCIL include derivatives clearing,

PF fund accounting, SGL constituent account services, mutual funds and other

capital market instruments distribution.



ICICI direct

ICICI Bank is India's second-largest bank with total assets of about

Rs.1,67,659 crores at March 31, 2005 and profit after tax of Rs. 2,005 crores for

the year ended March 31, 2005 (Rs. 1,637 crores in fiscal 2004). ICICI Bank has

a network of about 560 branches and extension counters and over 1,900 ATMs.

ICICI Bank offers a wide range of banking products and financial services to

corporate and retail customers through a variety of delivery channels and through

its specialized subsidiaries and affiliates in the areas of investment banking, life

and non-life insurance, venture capital and asset management.

ICICI Bank set up its international banking group in fiscal 2002 to cater to

the cross border needs of clients and leverage on its domestic banking strengths

to offer products internationally. ICICI Bank currently has subsidiaries in the

United Kingdom, Canada and Russia, branches in Singapore and Bahrain and

representative offices in the United States, China, United Arab Emirates,

Bangladesh and South Africa.

SHAREKHAN



Sharekhan is an equities focused organization tracing its lineage to SSKI, a veteran

equities solutions company with over 8 decades of experience in the Indian stock

markets.

In the stock markets. Sharekhan does not claim expertise in too many things. Sharekhan's

expertise lies in stocks and that's what he talks about with authority. So when he says that

investing in stocks should not be confused with trading in stocks or a portfolio-based

strategy is better than betting on a single horse, it is something that is spoken with years

of focused learning and experience

Sharekhan brings a user- friendly online trading facility, coupled with a wealth of content

that will help investors stalk the right shares.

UTI SECURITIES



UTI Bank is a registered member (Depository Participant) of NSDL. India’s first

depository. We can avail all of the depository-related services by just opening an account

with NSDL through UTI Bank.

UTI Bank provides services like dematerialization of shares, rematerilialization, pledge-

Hypothecation, freezing/ locking Of Accounts, transfer of shares and settlements, receipt

of corporate benefits, holdings & transaction statements on email, tele depository

services.

MARWADI SHARES AND FINANCE PRIVATE LIMITED



Marwadi Shares And Finance Pvt. Ltd. Was incorporated in 1992.Marwadi Group

servicing more than 75000 clients, more than 554 pin codes. The company ranked among

top 50 broking houses. It has 250 franchisee / subbrokers and authorized person’s

network.

HDFC SECURITIES



HDFC Securities, a trusted financial service provider promoted by HDFC

Bank and JP Morgan Partners and their associates, is a leading stock broking

company in the country, serving a diverse customer base of institutional and

retail investors.

HDFCsec.com provides investors a robust platform to trade in Equities in

NSE and BSE , and derivatives in NSE. Our website will support you with the

highest standards of service, convenience and hassle-free trading tools.

Our research team tracks the economy, industries and companies to

provide you the latest information and analysis. Our content offers financial

information, analysis, investment guidance, news & views, and is designed to

meet the requirements of everyone from a beginner to a savvy and well-informed

trader.

KOTAK SECURITIES



Kotak Securities, an affiliate of Kotak Mahindra Bank, is the stock-broking

and distribution arm of the Kotak Mahindra Group. The institutional business

division, which brings you AKSESS, primarily covers secondary market broking.

It caters to the needs of foreign and Indian institutional investors in Indian

equities (both local shares and GDRs, Global Depository Receipts). The division

also has a comprehensive research cell with sectorial analysts covering all the

major areas of the Indian economy.

The group a net worth of over Rs.1, 550 crores and employs over 3,000

employees in its various businesses. With a presence in 59 cities in India and

offices in New York, London, Dubai and Mauritius, it services a customer base of

over 5, 00,000

Kotak Mahindra has partnerships with Goldman Sachs (one of the world's

largest investment banks and brokerage firms), Ford Credit (one of the world's

largest dedicated automobile financiers) and Old Mutual (a large insurance,

banking and asset management conglomerate).



KARVY STOCKBROKING LIMITED

Karvy offers a full range of financial services and products ranging from Equities

to Research to enhance your wealth and hence achieve your financial goals.

Equities & Derivatives

Comprehensive services for independent investors, active traders & Non-

Resident Indians.

Karvy Research

Premium research on all most all companies updated daily.

Depository Services

Value added services for seamless delivery.



RELIANCE MONEY

Reliance Money is an endeavour to change the way India trades in financial markets and

avails of various financial services. Reliance Money ensures maximum security with a

unique security token to keep your online account safe.

ANAGRAM SECURITIES

Anagram Securities is the part of the Rs. 2000 crores Lalbhai Group. It was found in

1993 and is a member of the National Stock Exchange. Last year their trading crossed Rs.

17000 crores with around 5000 people making.

They are dealing only in Stock Market and nothing else. Though they are doing good

research work regarding companies and market which will be the beneficial to the

investors.

Gujarat state is one of the most important fields of their business. And they have about 30

branches throughout Gujarat.



COMPANY PROFILE

About SSJ

SSJ FINANCE is a well-diversified financial services entity offering clients advice on structuring a complete investment portfolio. We have written for ourselves the mandate to be a single-point, unbiased financial advisor to our clients. Our vision is to be the preferred financial services entity through a nation-wide network of Branches, Financial Advisors and Business Associates.

We listen, analyze, advice and act - focused solely on our clients’ financial interest. With services in equities, derivatives, commodities and depository, we seek to give clients a well balanced exposure into the myriad financial products available, taking into consideration their risk profile and investment outlook.

The SSJ Finance Group is a clearing cum trading member of various Equity and Commodity Exchanges and market segments through these entities:

SSJ Finance & Securities (P) Ltd.Member: The National Stock Exchange (NSE);Member: Bombay Stock Exchange Ltd. (BSE); Cash & Derivatives Segments Member: Calcutta Stock Exchange Association (CSE) Depository Participant: Central Depository Service (I) Ltd. (CDSL)

SSJ Commodities (P) Ltd.Member: Multi-Commodity Exchange (MCX)Member: National Commodity & Derivatives Exchange (NCDEX) Member: National Multi-Commodity Exchange of India Limited (NMCE)

M/s Sureshchand S. JainMember: The National Stock Exchange (NSE); Cash & Derivatives Segments

Promoter Group and Intellectual Capital

The SSJ Finance team comprises a diverse group of talented and experienced



individuals whose expertise and guidance will enable you to meet your investment objectives. We owe our success to the combined efforts of our Promoters and executives, both at the senior and junior management level.

Mr. Sureshchand Jain - Founder-Promoter and Chairman Mr. Saurabh Jain - Managing Director Our Intellectual Capital

Mr. Sureshchand Jain

Mr. Sureshchand S. Jain, the founder-promoter and Chairman of the Group, has over 35 years of experience in the Equity and Commodity markets. He has seen the financial markets through various economic cycles over these years. His experience, vision and far-sightedness have been a great source of wisdom for all at SSJ Finance. He spent the initial 15 years of his career in the Bullion markets as member of The Bombay Bullion Association and The Bombay Commodity Exchange Ltd. (the erstwhile Bombay Oilseeds & Oils Exchange Ltd.) and has acquired domain expertise in gold and silver.

His acquaintance with the Indian Equity bourses began in 1987 as member of Bombay Stock Exchange (BSE); which eventually gave shape to the present SSJ Finance Group. The SSJ Finance Group subsequently acquired memberships of all the major Equity & Commodity Exchanges in the country. Mr. Sureshchand Jain has been a pioneer in the development of arbitrage trading strategies in the Indian equity & commodity markets and leads the entire trading / arbitrage activities at SSJ Finance including the proprietary book of the Group.

Mr. Saurabh Jain

Overall management and strategic planning of the Group vest with senior executives including Mr. Saurabh Jain, Managing Director of the Group. Saurabh, a Chartered Accountant and an MBA by qualification, has more than 5 years of exposure to the Financial Services Industry with experience in Audit & Consulting, Investment Banking, Equity Sales & Trading, Asset Management and Investment Research.

Our Intellectual Capital

The senior management of the Group comprises of professional executives having broking, investment, trading & specialized research experience of over 10 years. They have prior experience in structuring Indices, carrying out Risk-free



Arbitrage, Index Arbitrage as well as Risk Arbitrage strategies, executing Private Equity Placement, Project Finance, Currency Swap transactions, Fixed Income and Equity research and portfolio structuring. SSJ Finance’s broking & research team has the experience of trading, hedging and developing strategies in Equities, Derivatives & Commodities. Members of the team analyze alternative investment avenues and prepare Special Situation Reports.

SSJ Finance’s network of branches across the country is headed by senior professionals with exhaustive experience and knowledge of the Capital Markets.

The Group is supported in its daily operations by senior executives who have been with the Group for several years now with extensive training and experience in their respective areas. Not only has this given them an excellent grasp over daily operations combined with knowledge of compliance requirements, it has also resulted in huge loyalty to the firm, the value of which is indeterminable. The heads of each department are easily approachable at all points of time.

SSJ Finance Broking Activities – Our History

SSJ Finance Group provides Equity & Commodity Broking services on the NSE, BSE, MCX and NCDEX through the following entities:

M/s. Sureshchand S. Jain (NSE)



SSJ Finance & Securities (P) Ltd. (BSE, NSE, CSE, and CDSL) SSJ Commodities (P) Ltd. (MCX, NCDEX)

M/s. Sureshchand S. Jain (NSE)

M/s. Sureshchand S. Jain is a proprietary concern, which acquired membership of NSE as a Clearing-cum-Trading Member at the time of the Exchange’s inception in 1994. Membership of the Derivatives segment was acquired in the year 2001 at the time of its introduction to the Indian capital markets.

SSJ Finance & Securities (P) Ltd. (BSE, NSE, CSE, and CDSL)

The Company was incorporated in December 1996 and acquired membership of the Bombay Stock Exchange (BSE) in April 1997. It subsequently became a composite member (dual membership) of BSE in the year 2000. In the same year, the Company also acquired membership of the Calcutta Stock Exchange (CSE) as well as became a Depository Participant (DP) with Central Depository Services (India) Ltd. (CDSL).

With a surge in volumes and the Group’s intentions of expanding its clientele business, a corporate membership of NSE was acquired under the name of SSJ Holdings (P) Ltd. in the year 2000 for Cash Market segment and in the year 2001 for the Derivatives segment. SSJ Holdings (P) Ltd. has been amalgamated with SSJ Finance & Securities (P) Ltd.

SSJ Commodities (P) Ltd. (MCX, NCDEX)

The SSJ Finance Group ventured into the commodities arena to leverage upon the rich experience of the promoters in the bullion market. It acquired membership of the Multi Commodity Exchange (MCX) and the National Commodity & Derivatives Exchange of India (NCDEX) in the year 2003 and National Multi-Commodity Exchange (NMCE) in the year 2007.

OUR VISION

Our vision is to be a leading wealth management service provider acting solely in the financial interest of our clients through a nationwide network of qualified professionals and business associates.



Our Philosophy Our business is built upon three important cornerstones… our Client, Business Associates and Employees. Our philosophy is unique and clearly defined.

Towards our Client Towards our Business Associates Towards our Employees

Towards our ClientThe Client is the driving force behind what we do. Our goal is to provide the highest quality of products and services, along with value-added advice and guidance based on the client’s needs. We look to develop long-term relationships with our clients built on strong ethics and trust.

Towards our Business AssociatesThe power of partnership engenders involvement, respect and mutual support. This is precisely the relationship that we foster with our Business Associates and Financial Advisors. We provide a complete platform built upon the best infrastructure and technology to enable our Business Associates and Financial Advisors to efficiently service the financial needs of our investing clients.

Towards our EmployeesOur employees are what set us apart. We’re all here for one reason - to serve our clients’ best interests. It is through leadership and accountability across our organization that we establish a common direction, encourage creative collaboration and provide an inspiring environment for our people.

Our Values

Upholding these values is the primary responsibility of leaders at every level within SSJ.

Respect for the Individual:We respect the dignity of each individual, whether an



employee, shareholder, client or member of the general public.

Partnership: Relationships among our staff members as well as our clients are driven by the power of partnership. The power of partnership engenders involvement, respect, contribution and mutual support. We encourage free exchange of ideas and demand teamwork.

Striving for excellence: While serving our clients we constantly strive for excellence to ensure that they derive complete satisfaction in their dealings with us.

Client focus:We aim to provide the highest quality of products and services to best serve the changing needs of clients.

Teamwork: We strive for seamless integration of services through cooperation and collaboration within and across workgroups and teams.

Meritocracy: We invest in our employees’ development and actively strive to be the best at attracting and retaining talented people. Our success calls for entrepreneurial spirit and initiative from each individual.

Integrity:At SSJ, our goal is to act in ways that help us to exemplify the highest standards of personal and professional ethics in all aspects of our business.

Our SSJ Logo



The SSJ alphabets in an ascending chain formation – signify the strong link that we strive to build between the company, our clients and employees. We work in the best interest of our clients, always!

The upward direction of the SSJ chain – signifies growth as the prime focus of the company.

Extension of the SSJ chain beyond the Logo borders –symbolizes unbounded prosperity for all its constituents as per ‘Vaastu’ philosophy.

The Green Colour – depicts wealth and an ethical work environment.

Why SSJ

At SSJ, we believe that investing is not a “one size fits all” proposition. Individual investors are real people, each with his or her own personal long-term financial goals. We offer financial solutions tailored specially to your individual needs.

So if you are interested in high quality investments, we invite you to explore this site and learn more about the unique services we have to offer to help you reach your financial goals.

Locate Us

Contact our Investment Centre closest to you to help you get started with SSJ Finance.

Alternatively, you may also e-mail us based on your nature of query:

Online Trading: [email protected] or [email protected]

Business Associate / Franchisee: [email protected]

Corporate Office: Registered Office:

1st Floor,Merchant Chamber 1st Floor, Surya Mahal






41,New Marine Lines.Opposite Patkar Hall 5, Burjorji Bharucha Marg, Fort,

Mumbai - 400 020 Mumbai 400 001

Maharashtra Maharashtra

India India

T: +91-22-4300 8800 T: +91-22-4347 2271

F: +91-22-4300 8899 F: +91-22-2264 4090

Regional Offices

SrNo State City Address Telephone Fax

1 Maharashtra Mumbai116 Linkway Estate, Link Road, Malad (W), Mumbai - 400 064

+91-22-67415130-36

+91-22-28769409

Regional Offices


1 Maharashtra NashikG-10/11, Suyojit Trade Centre, Sharanpur Road, Nashik – 422 002 Maharashtra India

+91-0253-3018541 / 42 / 43

Regional Offices


1 Maharashtra Pune303, 3rd Floor, Karan Selene Building, Above Yes Bank, Bhandarkar Institute Road, Shivaji Nagar, Pune-411004

020-30261111-13

Regional Offices


1 Maharashtra Thane101-104, 124-126, O. P. Commerce Centre Jesal Park, Bhayendar (E), Mumbai - 401 105 Maharashtra India

+91-22-28162402 / 03 / 07



Regional Offices


1 Gujarat Rajkot201, Star Chambers, Hari Har Chowk, Dr. Rajendra Prasad Road, Rajkot - 360 001 Gujarat India

+91-0281-3048652

+91-0281-3045649

Regional Offices


1 Madhya Pradesh Indore406-407, D M Tower, Race Course Road, Indore- 452001

0731-3024783-92

Regional Offices

SrNo

State City Address Telephone

1 Gujarat SuratNo. 216, Empire State Building, Near Udhna Darwaja, Ring Road, Surat - 395 002

0261-3024309/312(B) 0261-3024308(D)

Regional Offices


1 Gujarat Ahmedabad303, Iscon Avenue, Opposite Choice Restaurant, C.G. Road, Ahmedabad - 380 009 Gujarat India

+91-79-30073800

+91-79-30007675

2 Gujarat AhmedabadM-12, Ghadiali Complex, Jawahar Chowk, Maninagar, Ahmedabad - 380 008 Gujarat

079-30480284-92

Regional Offices


1 West Bengal Kolkata (AJC BOSE ROAD) FMC Fortuna, Suit No. A-14, 4th Floor,

+91-33-30588996 /

+91-33-30588995



234/3-A, AJC Bose Road, Kolkata - 700

97 / 98 / 99

Regional Offices


1 West Bengal Kolkata (Camac Street)

Shanti Niketan, Room No. 9, 10th Floor, 8, Camac Street, Kolkata - 700 017 West Bengal India

+91-033-22825425 / 033-32992260

+91-033-40061241

Regional Offices


1 Gujarat GandhinagarG-32/33, Megh Malhar Complex, Sector -11, Gandhinagar – 382 011 Gujarat India

+91-079 –30580301

Regional Offices


1 Jharkhand Ranchi2nd Floor, Baldeo House, Shradhanand Road, Upper Bazaar, Ranchi – 834 001 Jharkhand, India

+91-651-6455109

+91-651-6455110

Regional Offices


1 New Delhi New Delhi UGF-4, Kanchanjunga Building, 18, Barakhamba Road, Connaught Place,

+91-11-



New Delhi - 110001 30238906

Regional Offices


1 Rajasthan JaipurOff No.302 , Luhadia Tower, K-11, Ashok Marg ,Near Ahinsa Circle, C Scheme ,JAIPUR

9314451122 ,0141-3928700

egional Offices


1 Uttar Pradesh Kanpur114-117, Kan Chambers, 14/113 Civil Lines, Adjacent To UP Stock Exchange, Kanpur-208001

0512-3067880 to 87



Benefits of Equity Investing with SSJ...

As an investor, you would want quality services from a full-service brokerage firm whose function goes far beyond mere execution of buy-and-sell transactions.

Congratulations! Your search has just come to an end.

At SSJ Finance, we assure you that you will have a rewarding investing experience. We help you assimilate the massive amount of information – trends in the economy, the markets, specific industries and individual companies – that may affect your particular investments or investment decisions. The role of SSJ Finance is to help you, the investor, make deliberate, thoughtful decisions that match your personal needs with suitable investment alternatives.

We particularly enhance your investing experience with:

Excellent trade execution capabilities on BSE, NSE, MCX and NCDEX Futures & Options / Derivatives trading for those with a higher risk appetite Online Trading Facility with integrated Depository and Bank Gateway Arbitrage trading strategies Daily Market Analysis, Advisory reports & Special Situation Research

Reports Online real-time back office, available 24/7 Online Depository Services with Auto Pay-in facility Seamless transaction flow.

We have made investing and trading much simpler for you. By opening an account with SSJ Finance, you can enjoy the freedom to trade in any of the following 3 ways:

Trade Online – on your desktop through different trading platforms Call-n-Trade (for online trading clients) Contact or visit your nearest SSJ Finance branch office to place your orders.

To start trading in Equities, Derivatives and / or Commodities, using any of the 3 methods mentioned above, all you need to do is open an account with us or Contact us for any related queries.


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Equtiy Basics

What is Share/ Stock/ Equity?

A share is one of a finite number of equal portions in the capital of a company, mutual fund or limited partnership, entitling the owner to a proportion of distributed, non-reinvested profits known as dividends and to a portion of the value of the company in case of liquidation. Dividends are not guaranteed. They may be increased if the company performs well, but they may also be reduced or eliminated if the company performs poorly.

So when you purchase shares, you become part owner of a company. As an owner, you are usually entitled to voting rights on the board of directors and corporate policy.

Modes of Stock Purchase

Stocks can be purchased individually (meaning you purchase shares of stock in one particular company) or as part of a pool investments, such as mutual funds.

Mutual funds are baskets of stocks that are available for the fraction of the price you would need to buy the same stocks individually. That's because a large number of investors pool their money together and invest in the entire portfolio of stocks.

Professional money managers direct the investments within mutual funds, choosing each of the individual investments based on the mutual fund's investment goals. For example, some equity mutual funds invest in well-established companies that pay regular dividends. Others invest in younger, more growth-oriented firms or companies that have been operating below expectations for several years.

Note: As with the purchase of individual stocks, your investment return and principal value of an investment in mutual funds will fluctuate. Your shares may be worth more or less than your original investment when redeemed.



What are the different kinds of risks one should consider while investing?

Risk in investments can be of the following types:

Market Risk or Volatility: This refers to the fluctuation in the value of investments due to changes in the price of the stocks included in an investor’s portfolio which could be caused by a variety of factors such as performance of the company, policy announcements, political factors etc. Even a portfolio of well-diversified assets cannot escape all risk.

Inflationary risk: Also known as purchasing power risk, this is the decline in the purchasing power of money over time, so that even the "safest" investments can leave investors with substantially less purchasing power. For example, assuming an inflation rate of 4% for the next 10 years, if you have Rs.100 today, 10 years from now inflation will have eroded that Rs.100 so that it is worth only Rs.68.

Investment or credit risk: This is the possibility that a company in which an investor is invested in may not be sufficiently profitable to remain in business.

Another manner of classifying risk in securities is as follows:

Unsystematic Risk: Unsystematic risk affects a very specific group of securities or an individual security. Internal risks such as strikes, management policies, etc. are to a large extent controllable and are examples of non-systematic risks. An investor can easily manage such non-systematic risks by having a well-diversified portfolio spread across the companies, industries and groups so that a loss in one may easily be compensated with a gain in other.

Systematic Risk: The risk inherent to the entire market or entire market segment is called Systematic Risk. It is also known as "un-diversifiable risk". Such risks are external and beyond the control of the company. Examples of such risks are economic, political and sociological changes. Their impact is on prices of all individual stocks and they move together in the same manner. Therefore quite often the stock prices may be falling despite good company performance and vice versa.

Since higher returns are associated with higher risks, you, as an investor, need to understand your risk tolerance level and certain principles of investing which can help you diversify and mitigate this risk. Before venturing into the world of stock investments, consider:

Are you conservative, aggressive or speculative in your approach to investing? Are you comfortable owning aggressive stocks? Are you looking for a steady stream of income, long-term returns from growth or



very high returns from risky short-term trading?

Factors affecting Investment Decisions

Before you begin investing, it's helpful to understand some of the factors that will affect your investment decisions, such as:

Risk Liquidity Time Horizon Total Return Diversification Tax Consequences Rupee Cost Averaging

Risk: Risk in investments can take various forms. For details click here.

Liquidity: A "liquid" investment is one that can be readily turned into cash if you need the funds on short notice. Investments can vary greatly in their degree of liquidity. Shares can be traded on any business day at their current market value, which may be more than, equal to or less than the amount initially invested.

Time Horizon:Different investors have different time frames in which to achieve their investment objectives. Generally, young investors with long time horizons should be able to assume greater risks because they have more time to offset any losses with the higher return potential of investments with greater risk. Older investors, however, often choose to reduce risk because they have less time to recoup losses.

Total Return: All investments provide one or a combination of two different types of returns to investors - income or growth. Income is the dividend earned from stocks. Growth is the price appreciation of the security. The total return of an investment is the combination of income and growth realized over a given time period. In selecting investments based upon their expected total return, you should understand which portion is generated from income and which from growth. Usually, the greater the reliance on income, the lower the market risk but the greater



the long-term purchasing power (or inflationary) risk.

Diversification: Building a diversified portfolio with securities spread across different investment classes can help you avoid the risk of having all of your eggs in one basket. By mixing industries and types of assets, you spread your risk. A particular market condition may have less impact if your portfolio consists of a wide assortment of securities than if you purchase only one type of security.

Most beginning investors don't have sufficient capital to properly diversify their portfolio by purchasing individual securities. Investing in mutual funds allows you to buy a professionally managed, diversified portfolio with relatively small rupee amounts. In addition, many mutual funds allow you to take advantage of rupee cost averaging by investing at regular intervals.

Note: Mutual fund investing involves risk. Your principal and investment return in a mutual fund will fluctuate in value. Your investment, when redeemed, may be worth more or less than the original cost.

Tax Consequences: Not all investment returns are subject to the same taxation. Short term and long term returns are taxed at different capital gains rates or even taxed as business income. The taxation policy should be kept in mind while deciding which investments to make.

Rupee Cost Averaging: Rupee cost averaging, the practice of committing a fixed amount of money to an investment program on a regular basis, is a popular practice with many long-term investors. By investing a set amount regularly (usually monthly or quarterly), investors are able to avoid the pitfalls of trying to time market peaks and valleys. Also, because the amount of the investments is set, investors who practice rupee cost averaging buy more shares of a stock or mutual fund when they are less costly and fewer shares when they are more expensive.

Like any investment strategy, rupee cost averaging doesn't guarantee a profit or protect against loss in a declining market. Because rupee cost averaging requires continuous investment regardless of fluctuating prices, you should consider your financial and emotional ability to continue the



program through both rising and declining markets.

What are the different kinds of risks one should consider while investing?

Risk in investments can be of the following types:

Market Risk or Volatility: This refers to the fluctuation in the value of investments due to changes in the price of the stocks included in an investor’s portfolio which could be caused by a variety of factors such as performance of the company, policy announcements, political factors etc. Even a portfolio of well-diversified assets cannot escape all risk.

Inflationary risk: Also known as purchasing power risk, this is the decline in the purchasing power of money over time, so that even the "safest" investments can leave investors with substantially less purchasing power. For example, assuming an inflation rate of 4% for the next 10 years, if you have Rs.100 today, 10 years from now inflation will have eroded that Rs.100 so that it is worth only Rs.68.

Investment or credit risk: This is the possibility that a company in which an investor is invested in may not be sufficiently profitable to remain in business.

Another manner of classifying risk in securities is as follows:

Unsystematic Risk: Unsystematic risk affects a very specific group of securities or an individual security. Internal risks such as strikes, management policies, etc. are to a large extent controllable and are examples of non-systematic risks. An investor can easily manage such non-systematic risks by having a well-diversified portfolio spread across the companies, industries and groups so that a loss in one may easily be compensated with a gain in other.

Systematic Risk: The risk inherent to the entire market or entire market segment is called Systematic Risk. It is also known as "un-diversifiable risk". Such risks are external and beyond the control of the company. Examples of such risks are economic, political and sociological changes. Their impact is on prices of all individual stocks and they move together in the same manner. Therefore quite often the stock prices may be falling despite good company performance and vice versa.

Since higher returns are associated with higher risks, you, as an investor, need to understand your risk tolerance level and certain principles of investing which can help you diversify and mitigate this risk. Before venturing into the world of stock investments, consider:

Are you conservative, aggressive or speculative in your approach to investing?



Are you comfortable owning aggressive stocks? Are you looking for a steady stream of income, long-term returns from growth or

very high returns from risky short-term trading?

Benefits of Derivatives trading with SSJ…

Derivatives are a key part of the financial system, with the various derived contracts accounting for a significant share of all capital market transactions in the domestic and global markets. In India, derivative contracts are heavily traded on the National Stock Exchange (NSE). Derivate contracts are increasingly being traded on the Bombay Stock Exchange (BSE) as well. With our membership of the Derivatives Segment on both these exchanges, we, at SSJ Finance, encourage you to avail of the several benefits of derivatives trading, including, researched trading ideas, hedging and arbitrage strategies, strong risk management of leveraged positions, lower cost of trading and many more.

The SSJ Derivative Market segment has a composite understanding of the equity and derivatives market reflected in our unique Trading / Hedging / Arbitrage strategies. We offer the latest technological infrastructure for hassle-free trading, live market reports, in-depth analysis and tracking services to enable you to adopt appropriate derivative strategies (Bull Spread, Bear Spread, Cover call writing, hedging strategies etc.) specific to your individual portfolio.

We have made investing and trading much simpler for you.By opening an account with SSJ Finance, you can enjoy the freedom to trade in any of the following 3 ways:

Trade Online – on your desktop through different trading platforms Call-n-Trade (for online trading clients) Contact or visit your nearest SSJ Finance branch office to place your orders.

To start trading in Equities, Derivatives and / or Commodities, using any of the 3 methods mentioned above, all you need to do is open an account with us or Contact us for any related queries.

Come and enhance your investing experience with us!



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Derivatives

Derivatives are financial contracts between two or more parties whose values are derived from the value of an underlying primary financial instrument, commodity or index, such as interest rates, exchange rates, commodities, bonds and equities. Derivatives include a wide assortment of financial contracts, including forwards, futures, swaps and options. Most derivatives are characterized by high leverage.

Since derivatives are mere 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 and arbitrage purposes.

History of Derivatives in India

In India, derivative contracts are heavily traded on both the national exchanges, NSE and BSE. History of Derivatives in India can be outlined as follows:

Date Event

9th June 2000First exchange traded Index Derivative Product – Sensex Futures – was launched by BSE

12th June 2000 NSE commenced Trading in Index Futures

1st June 2001 BSE commenced Trading in Index Options

4th June 2001 NSE introduced Trading in Index Options

2nd July 2001 NSE commenced Trading in Options on Individual Securities

9th July 2001 BSE commenced Trading in Stock Options

November 2001 NSE commenced Trading in Futures on Individual Securities

9th November 2002 BSE commenced Trading in Futures on Individual Securities



June 2007 NSE launched derivatives on Nifty Junior & CNX 100

Why consider Derivative Contracts?

With the present volatile market conditions and the continuous national and international developments making it risky to have overnight positions, clients need a way to safeguard their profits and at the same time minimize their losses. Derivative contracts are ideal for this purpose.

Futures investors have long recognized that they have the potential to profit from both upward and downward movement of investments. Derivatives help to improve market efficiency because risks can be isolated and sold to those who are willing to accept taking these risks at the least cost. The use of derivatives breaks risk into pieces, which can be managed independently. Thus, from the market prospective, derivatives offer the free trading of financial risks.

Speculators can take advantage of highly leveraged exposures in both financial and non-financial markets. That means they can buy futures contracts by depositing just a small percentage of the overall contract price. Their goal is to profit from changes in the price of the futures contract.

Hedgers, those who hold a specific asset or have a specific exposure in the cash market, often take a position in the derivatives market opposite to that in the cash market to help reduce the risk of rising or falling prices.

Futures – Trading Strategies

For a market to succeed it must have all kinds of participants – hedgers, speculators and arbitragers. The confluence of these participants ensures liquidity and efficient price discovery on the market. We, at SSJ Finance can help you choose the right trading strategy that suits your profile and requirement.

The main trading strategies that can be formulated using futures are listed below:

Hedging


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Speculation

Arbitrage

Hedging

Hedging is the act of taking a position in the futures market that is exactly opposite to ones position in other segments of the market such as the equity segment, commodity physical market etc., with a view of offsetting losses in one segment (say ,in equities/commodities spot market) with a gain in the other (say ,futures segment). Hedging does not necessarily improve financial outcome or result in increased profit. This strategy helps in reducing or limiting risk associated with unpredictable changes in prices, in other words, it increases the certainty of the outcome. Hedging strategy can be adopted in the following two ways:

Buying Hedge or Long Hedge – In the equities market, if you are short in the cash segment, you can buy futures contracts and hedge your cash position. Based on the rationale that both cash and futures segment move in tandem, in case prices rise, you will make a profit in the futures contract which will offset your loss in the cash segment. If prices fall, you will make a profit in the cash segment and a loss in the futures segment. In case of commodities market, this strategy is quite useful for exporters / traders who have made commitments to deliver the specified amount of raw materials / processed products / manufactured goods at a later date at a price currently agreed upon, but do not have the stock of raw materials to fulfill their commitments for forward deliveries.

Selling Hedge or Short Hedge – This means selling futures contracts to hedge long position in cash market. For example, in the commodities market, manufacturers and dealers who have bought raw materials or are maintaining inventory for future sale, can protect the prices of their future sales by selling futures contracts.

Speculation

Under the hedging strategy, profit is minimal since profit generated in one segment is eaten up by loss in the other segment. If risk minimization is not your motive, and you are interested in making maximum gains from your investment, you can become a speculator. Under the speculation strategy, when an investor


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thinks that the market is bullish, he buys the Index futures contract. Similarly, if he is bearish about the market, he sells the Index futures contract. The same strategy can be applied to individual stock futures as well.

The advantage of this strategy is that without any existing position in the cash market, and even without having the physical resources to take delivery of the underlying asset or the desire to take delivery of the underlying asset, a speculator can make use of price movements to make a profit, based on his expectations. Another advantage to the market as a whole is that speculators provide liquidity to the market, since they accept the risk which hedgers wish to transfer. Without them, the hedging function would have proved to be a very expensive option.

Note: Futures market provides you with the advantage of leverage, since you can trade large volumes with only a small investment in the form of margin money. While profits can be huge, ones losses can also be large. Hence, you must step into the futures market with great caution, only after understanding the risks involved.

Arbitrage

Arbitrage involves the simultaneous purchase and sale of an asset in order to profit from a temporary price differential, usually taking place on different exchanges or marketplaces. When used by academics, an arbitrage is a transaction that involves no negative cash flow at any probabilistic or temporal state and a positive cash flow in at least one state; in simple terms, “a risk-free profit”. If you want to replace the returns from your idle funds in fixed deposits with higher yielding returns, arbitrage is a good risk free investment option for you.

A person who engages in arbitrage is called an arbitrageur. The term is mainly applied to trading in financial instruments, such as bonds, stocks, derivatives, commodities and currencies.



Options – Strategy Guide

With various option strategies such as long call/put, short call/put, straddle, strangle, butterfly, spread etc. possible, it is very easy to get confused as to which strategy one should adopt to fulfill ones objective of maximizing gains or hedging. If you have a view on market trend (bullish / bearish / neutral / volatile), you can make optimum use of the strategy guide given below. Click on the appropriate link to get details of the strategy that you should adopt in the given scenario.

BULLISH STRATEGY

Very Bullish Buy Call

Moderately Bullish + Certain that the market will not fall Sell Put

Moderately Bullish + Fairly certain that the market will not fall Bull Spread

Bearish in immediate near-term (weeks) + bullish in long term (months)

Diagonal Spread

BEARISH

Very Bearish Buy Put

Certain that the market will not rise Sell Call

Moderately bearish + Fairly certain that the market will not rise Bear Spread

Flat/mod. bullish in near-term(weeks) + bearish in longer term (months)

Diagonal Spread

Hold stock and bearish Put Hedge

NEUTRAL

Expect prices to fluctuate in very narrow range Sell Straddle

Expect prices to fluctuate in a broader range Sell Strangle

Moderately certain that prices will not fluctuate much Long Butterfly

Expect short-term weakness but longer-term rally Calendar Spread

Hold stock but expect no movement Covered Call


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VOLATILE

Expect prices to be very volatile Buy Straddle

Expect prices to be volatile Buy Strangle

Moderately expect prices to be volatile Short Butterfly

BULLISH

Very Bullish – BUY CALL

Strategy View You think that the market will rise significantly in the short-term.

Strategy Implementation

Buy Call option with a strike price ‘x’. The more bullish you are, the higher the strike price should be, i.e. the more out-of-the-money the option you buy. (However, the more out-of-the-money the option is, the less likely that it will make money)

Upside Potential Profit potential is unlimited and rises as the market rises.

Breakeven Point at Expiry

Strike Price + Premium

Downside RiskLimited to the premium paid for the option and is incurred if the market at expiry is at, or below, the strike ‘x’.

Margin Not Required

Comment

Once you have bought the option, the strike price is fixed. Other things remaining constant, the value of the option decays as time passes. This is why some people say, a call is a “wasting asset”. If price goes up or volatility increases, the erosion slows. If price drops or volatility decreases, the erosion speeds up.

Moderately Bullish + Certain that the market will not fall – SELL PUT

Strategy ViewYou are certain that the market will not go down, but unsure / unconcerned about whether it will rise.


Sell Put option with a strike price ‘x’. If you are very bullish and aggressive, then sell in-the-money puts. If conservative, sell


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out-of-the-money puts.

Upside PotentialProfit potential is limited to the premium received. The more the option is in-the-money, the greater will be the premium you will receive.


Strike Price – Premium

Downside RiskLoss is almost unlimited (“almost” as the underlying price cannot fall below Zero!). [ If the strategy appeals, but not the downside risk, investors may prefer a ‘Bull Spread’]

Margin Always Required

CommentIf the market does little, and time passes, this helps as the short position gains when the time value erodes.

Moderately Bullish + Fairly certain that the market will not fall – BULL SPREAD

Strategy ViewYou are bullish but unsure. You think that the market will not fall, but want to cap the risk. Conservative strategy for one who thinks that the market is more likely to rise than fall.


USING CALLS USING PUTS

Long a Call with strike price ‘x’ and Short another Call with a higher strike price ‘y’, producing a net initial debit.

Long a Put at a strike price ‘x’ and Short another Put with a higher strike price ‘y’, producing a net initial credit.

Upside Potential

Limited to Difference between Strikes minus Initial Debit.

Limited to Net Initial Credit

Maximum Profit if market at expiry is above the higher strike price.

Downside Risk Limited to Net Initial Debit Limited to Difference between Strikes minus Initial Credit.



Maximum Loss if market at expiry is below the lower strike price.

Margin Possibility for Margin Requirements to be off-set.

Comment

Time value erosion not too significant due to balanced position. The benefit of buying a spread is that it requires a smaller investment than buying a single call / put. The cost is that it makes less money (limited) than the call (unlimited) should the stock rise sharply.

Bearish in immediate near-term (weeks) + bullish in long term (months) – DIAGONAL SPREAD

Strategy ViewYou think that the market will be weak in the short term, but then rally later.


A near-dated call option is sold, and a longer dated, further out-of-the-money call option is bought.

Upside Potential

Unlimited, if the bought option is held after the short option expires (the position then becomes a straight-forward buy call). If the position is closed at expiry of the near option, maximum profit will accrue if the market is at the level of the sold strike.

Downside RiskLimited to the difference in strikes plus / minus the initial debit / credit when establishing the spread.

Margin Yes, but off-set may apply

CommentThere is a risk of the sold options being called (i.e. being exercised).

BEARISH

Very Bearish – BUY PUT

Strategy View You think that the market will fall significantly in the short-term.


Buy Put option with a strike price ‘x’. The more bearish you are, the lower the strike price should be, i.e. the more out-of-the-money the option you buy. (However, the more out-of-the-



money the option is, the less likely that it will make money)

Upside PotentialProfit potential is unlimited (well, not really unlimited of course, as the market cannot fall below Zero!)


Strike Price – Premium paid

Downside RiskLimited to the premium paid for the option and is incurred if the market at expiry is at, or above the strike ‘x’

Margin Not Required

CommentIf the market does little, and time passes, the value of the position will decrease as the option time value erodes.

Certain that the market will not rise – SELL CALL

Strategy ViewYou are certain that the market will not rise, but unsure / unconcerned whether it will fall.


Sell Call option with a strike price ‘x’. If conservative, sell out-of-the-money calls. If you are not so conservative and believe the stock is stagnant, sell at-the-money options. If you are aggressive and confident that the market is going down, sell in-the-money call options.

Upside PotentialProfit potential is limited to the premium received. The more the option is in-the-money, the greater will be the premium you will receive.



Downside RiskDownside risk is unlimited. Losses on the position will increase as the market rises. [ If the strategy appeals, but not the downside risk, investors may prefer a ‘Bear Spread’]


Comment If the market does little, and time passes, this helps as the short



position gains when the time value erodes.

Moderately bearish + Fairly certain that the market will not rise – BEAR SPREAD

Strategy ViewYou are bearish but unsure. You think that the market will not rise, but want to cap the risk. Conservative strategy for one who thinks that the market is more likely to fall than rise.


USING CALLS USING PUTS

Sell a Call with strike price ‘x’ and Buy another Call with a higher strike price ‘y’, producing a net initial credit.

Sell a Put at a strike price ‘x’ and Buy another Put with a higher strike price ‘y’, producing a net initial debit.

Upside Potential

Limited to Net Initial CreditLimited to Difference between Strikes minus Initial Debit.

Maximum Profit if market at expiry is below the lower strike price.

Downside Risk

Limited to Difference between Strikes minus Initial Credit.t

Limited to Net Initial Debit

Maximum Loss if market at expiry is above the higher strike price.

Margin Possibility for Margin Requirements to be off-set.

Comment

Time value erosion not too significant due to balanced position. The benefit of a bear spread is that it requires a smaller investment. The cost is that it makes less money than a pure long put position should the stock fall sharply.

Flat / moderately bullish in near-term(weeks) + bearish in longer term (months) – DIAGONAL SPREAD

Strategy ViewYou think that the market will be flat or rise only slightly in the short term, but then fall later.




A near-dated put option is sold, and a longer dated, further out-of-the-money put option is bought.

Upside Potential

Large, if the bought option is held after the short option expires (the position then becomes a straight-forward buy put). If the position is closed at expiry of the near option, maximum profit will accrue if the market is at the level of the sold strike.

Downside RiskLimited to the difference in strikes plus / minus the initial debit / credit when establishing the spread.

Margin Yes, but limited

CommentThere is a risk of the sold options being called (i.e. being exercised).

Hold stock and bearish – PUT HEDGE

Strategy ViewYou hold stock and are worried about a market fall. You can buy Put Options to protect the value of the stock position, while allowing the position to benefit in the event of a market rise.


Buy Put Options with a strike price ‘x’. The number of put options bought will depend on your bearishness and the size of your stock holding.

Upside PotentialProfit potential is unlimited, being the ordinary return on the stock minus the fixed premium paid for the put options.

Downside RiskPotentially limited (depending on the hedge-ration initially applied). The gains on the put options as the market falls, will off-set the loss in the value of the stock.

Margin Not Required

Comment Strategy characteristics are similar to a Buy Call.

NEUTRAL

Expect prices to fluctuate in very narrow range – SELL STRADDLE

Strategy View You are certain that the market will not be very volatile, but will



stagnate (neither go up or down very much).


Short a Call and a Put option at the same strike price ‘x’

Upside PotentialLimited to the 2 premiums received. This will be realized if market at expiry is exactly at the level of the strike price.


The lower point ‘a’ will be the strike minus the value of the 2 premiums received. The upper point ‘b’ will be the strike plus the 2 premiums received. (If you would like to broaden this band, a Sell Strangle might appeal to you)

Downside Risk Unlimited, should the market rise or fall greatly.


CommentIf the market does little, and time passes, then the value of the position will benefit as the short positions gain when the time value erodes.

Expect prices to fluctuate in a broader range – SELL STRANGLE

Strategy View You expect the market to stagnate within a broadish band.


Sell Put option with a strike price ‘ x’ and Sell Call option with a higher strike price ‘y’

Upside Potential Limited to the 2 premiums received.


Lower point ‘a’ will be the lower strike ‘x’ minus the value of the 2 premiums received. The upper point ‘b’ will be the higher strike ‘y’ plus the 2 premiums received.

Downside RiskUnlimited, should the market rise or fall greatly. (If you like this strategy, but not the downside risk, a Long Butterfly might be interesting)


CommentIf the market does little, and time passes, then the value of the position will benefit as the short positions gain when the time value erodes.

Moderately certain that prices will not fluctuate much – LONG BUTTERFLY



Strategy ViewYou expect that prices will not fluctuate much, but want to cap the downside risk.


Buy Call option with low strike ‘a’, Sell 2 Call options with medium strike ‘x’(x > a) and Buy Call option with high strike ‘b’ (b > x > a)

Upside PotentialLimited to the difference between the lower and the middle strikes minus the net debit of establishing the spread. This is obtained if the stock ends up at the middle point (x) on the expiration day

Downside RiskLimited to the initial debit of establishing the spread. This occurs if the stock is on the ‘wing’.

Comment Can be difficult to execute such strategies quickly.

Expect short-term weakness but longer-term rally – CALENDAR SPREAD

Strategy ViewYou think that the market will be weak in the short-term, but rally in the longer term.


You Sell a near-dated Call option and Buy a longer-dated Call option, both options having the same strike price. (If you have the opposite view, then a comparable strategy can be constructed using puts)

Upside Potential

Large, if the bought option is held after the short option expires (the position then becomes a straightforward Buy Call). If the position is closed at expiry of the near option, maximum profit will accrue if the market is at the level of the sold strike.



Downside Risk Limited to the Initial Debit incurred for establishing the spread.

Margin Off-set maybe available

CommentThere is a risk of the sold options being called (i.e. being exercised). Sometimes, this strategy is also called Horizontal or Time spread.

Hold stock but expect no movement – COVERED CALL

Strategy ViewYou hold stock but do not think that the stock will rise in the short term, or that the stock will be neutral. Income can be earned by selling call options against the stock holding.




Sell Call options. The number of call options that you sell will be determined by your market view and the size of the stock holding.

Upside PotentialLimited. By selling calls, you are writing off the potential profit of the stock position.

Downside RiskLarge. Similar to that incurred with ordinary stock ownership, only offset partially by the fixed option premium received. Main loss could be the opportunity lost if the market rises strongly.


VOLATILE

Expect prices to be very volatile – BUY STRADDLE

Strategy ViewYou think that the market will be very volatile in the short term. You expect a big move but are not sure in which direction. Especially good strategy if the market has been quiet then starts to zigzag sharply.


Buy Call option and Put option with the same strike price ‘x’, usually at-the-money.

Upside PotentialUnlimited. The maximum gain is obtained when the stock is up or down significantly.


Lower point is the Strike minus the 2 Premiums paid. The upper point is the Strike plus the 2 Premiums paid.

Downside RiskLimited to the 2 Premiums paid. This occurs if the stock ends up at the strike price. (If you want to reduce the premium paid, then a Buy Strangle might be interesting)

Margin Not Required

CommentPosition loses value with passage of time as time value decreases on options.



Expect prices to be volatile – BUY STRANGLE

Strategy ViewYou think that the market will be very volatile in the short term. You expect a big move but are not sure in which direction.


Buy Put option with a strike ‘x’ and Buy Call option with a higher strike ‘y’

Upside PotentialUnlimited. The maximum gain is obtained when the stock is up or down significantly.

Downside RiskLimited to the 2 Premiums paid. (If you want to reduce the premium paid even further, then a Short Butterfly might be interesting)

Margin Not Required

CommentPosition loses value with passage of time as time value decreases on options. A strangle is cheaper because you buy a lower strike Put, but the stock has to move further to make a profit.

Moderately expect prices to be volatile – SHORT BUTTERFLY

Strategy ViewShort a Call at strike ‘a’, Buy 2 Calls at a higher strike ‘x’ and Short another Call at a still higher strike ‘b’. (b > x > a)

Upside PotentialMaximum gain is the proceeds received (net premium) which occurs if the stock rises above the highest strike (b) or falls below the lowest strike (a)


Lower point is the lowest strike (a) plus the initial credit. The upper point is the highest strike (b) minus the initial credit.

Downside Risk Limited. This occurs when the stock is at the middle strike (x)

Comment A Short Butterfly position can also be created using puts, by selling 2 put at strikes ‘a’ and ‘b’, and buying 2 puts at a middle strike ‘x’ (b > x



> a)

Benefits of Commodity Trading with SSJ...

Our promoters have over 35 years of rich experience in the commodity markets built upon the time since they held memberships of The Bombay Bullion Association and the Bombay Commodity Exchange Ltd. (the erstwhile Bombay Oilseeds & Oils Exchange Ltd.).

Today, SSJ Finance is also a member of the following commodity exchanges:

National Commodity & Derivatives Exchange Ltd. (NCDEX) Multi Commodity Exchange of India Ltd. (MCX) National Multi-Commodity Exchange of India Ltd. (NMCE)

Our membership across these Exchanges allows you to trade in a vast variety of commodities as well as profit from arbitrage opportunities arising out of price differences between these Exchanges.


http://www.ssjfinance.com/ARBITRAGE/ARB_BenifitwithSSJ.shtml


Some of the commodities you can trade are:

Precious Metals: Gold, SilverOther Metals: Aluminum, Copper, Nickel, Steel, TinEnergy: Crude Oil, Brent CrudeAgricultural Products: Chana, Guar Gum, Guar Seed, Gur, Jeera, Maize, Kapas, Silk, Raw Jute, Jute Sacking Bags, Red Chilly, Basmati Rice, Rice, Urad, Wheat, Pepper, Cashew, Castor Seed, Crude Palm Oil, Expeller Mustard Oil, Mustard Seed, Ground Nut Oil, RBD Palmolein, Soya Bean, Soy Seed, Refined Soya Oil, Rubber, Sugar, Turmeric, Yellow Peas.

There are a number of other commodities traded including their variations and this list is continuously expanding.

SSJ Finance has also developed relationships with intermediaries in the physical market, i.e. mandis, enabling us to obtain quality information and provide trading opportunities for our clients.

We further enhance your investing experience with:

Round-the-clock Commodity Desk on MCX & NCDEX Prompt Dealing Services to cater to trade and post trade needs Experienced Commodity Team Hedging, Investment and Arbitrage Strategies suited for Individual Needs Regular News and Updates on the Market Strong Inbuilt Risk Management System Online Trading facility empowering you to execute your own trades over the

internet Online Commodity Back-office completely synchronized with Equity

Markets.



Commodities Market

India, a country with a population of over one billion, is essentially a commodity based economy encompassing agriculture, precious metals and base metals. The size of the physical commodity market in India is estimated to be around Rs.11 lakh crore per annum. Of late, commodities have come to be accepted as a separate asset class with a unique and distinct source of returns, along with traditional avenues like stocks, bonds and real estate. The increasing volumes on commodity exchanges such as MCX and NCDEX suggest that commodity markets in India are here to stay.

Benefits of using Commodity Futures

Commodity Futures offer a number of benefits to users. Some of these are:



o Investors can take long-term view on the underlying commodity and trade accordingly using commodity futures.

o High degree of leverage availableo Hedging opportunity availableo Opportunity to arbitrage or earn risk-free profit due to temporary distortions in the

price relationship between the futures and spot prices.o Presence of international commodities like gold, silver, crude oil, aluminium,

steel etc. which can be tracked based on the international market movements as well.

o Liquidity - ease of entry and exit of marketo Price discovery - for taking farming and business decisionso Price stabilization along with balancing demand and supply positiono Flexibility, certainty and transparency in purchasing commodities facilitate bank

financingo Commodities offered on MCX & NCDEX...

o Precious Metals: Gold, Silvero Other Metals: Aluminum, Copper, Nickel, Steel, Tin...o Energy: Crude Oil, Brent Crude…o Agricultural Products: Chana, Guar Gum, Guar Seed, Gur, Jeera, Maize, Kapas,

Silk, Raw Jute, Jute Sacking Bags, Red Chilly, Basmati Rice, Rice, Urad, Wheat, Pepper, Cashew, Castor Seed, Crude Palm Oil, Expeller Mustard Oil, Mustard Seed, Ground Nut Oil, RBD Palmolein, Soya Bean, Soy Seed, Ref. Soya Oil, Rubber, Sugar, Turmeric, Yellow Peas…

o There are a number of other commodities traded including their variations and this list is continuously expanding.

o At present, trading in commodities is restricted to futures contracts only. The Exchanges are also in the process of establishing online Spot Exchanges as well

o Participants in the Commodities Futures Market

o Hedger: One who wants to hedge the price risk in the commodity he is exposed to. He transfers the price-risk associated with the ownership of the commodity by taking an equal and opposite position in the futures market. Any loss resulting from change in spot prices will be compensated by an equivalent gain in the futures market. Similarly any profit which he might realize from change in spot prices will be set off by the loss that will be incurred from position taken in the futures market.

o Investor: One who sees participation in the commodities market only as an investment opportunity to diversify the risk of his portfolio.

o Arbitrageur: One who works at making profits by taking advantage of discrepancy between prices of the same product across different markets. If, for example, they see the futures price of a commodity getting out of line with the cash price, they would take offsetting positions in the two markets to lock in the profit.



o Speculator: One who wishes to bet on future movements in the price of a commodity. Futures contracts give them leverage; that is, by putting in small amounts of money upfront, they can take large positions on the market. As a result of this leveraged speculative position, they increase the potential for large gains as well as large losses

Benefits with SSJ

Our philosophy of being a one-stop shop for our clients, providing professional and personalized service, is complemented by our Depository (DP) operations. SSJ Finance is a member of the CDSL [Central Depository Services (India) Ltd.] network. Our DP service allows a seamless flow of the entire transaction cycle. In today’s T+2 settlement mode, being an in-house DP, provides a huge operational and cost advantage to our clients.

As your DP, we open and maintain your demat account with CDSL. As our client, you can now maintain your investments electronically. You can find the status of your holdings and transactions online as well as through regular correspondences sent by us.



Benefits

By opening your demat account with SSJ Finance, you can avail of the following benefits:

Seamless transaction flow with your equity market transactions. No paper instructions required to fulfill your broker pay-in obligations at SSJ Finance from your demat account.

Maximum time flexibility for executing your DP instructions.

View your demat account details online anywhere, any time through your secured login. Your information is also available with our branch with which you are attached.

Transaction statements are sent to you via courier on a monthly basis.

What is a Depository?

A Depository facilitates holding of securities in the electronic form and enables securities transactions to be processed by book entry by a Depository Participant (DP), who as an agent of the depository, offers depository services to investors. According to SEBI guidelines, financial institutions, banks, custodians, stockbrokers, etc. are eligible to act as DPs.

The investor who is known as beneficial owner (BO) has to open a demat account through any DP for dematerialisation of his holdings and transferring securities.The balances in the investors account recorded and maintained with the depository can be obtained through the DP. The DP is required to provide the investor, at regular intervals, a statement of account which gives the details of the securities holdings and transactions.

Number of Depositories in India

There are two Depositories currently operational in India



National Securities Depository Limited (NSDL) - The enactment of Depositories Act in August 1996 paved the way for establishment of NSDL, the first depository in India.

Central Depository Services Limited (CDSL) – This was the second depository in the country.

A Depository facilitates holding of securities in the electronic form and enables securities transactions to be processed by book entry by a Depository Participant (DP), who as an agent of the depository, offers depository services to investors. According to SEBI guidelines, financial institutions, banks, custodians, stockbrokers, etc. are eligible to act as DPs.

The investor who is known as beneficial owner (BO) has to open a demat account through any DP for dematerialisation of his holdings and transferring securities.The balances in the investors account recorded and maintained with the depository can be obtained through the DP. The DP is required to provide the investor, at regular intervals, a statement of account which gives the details of the securities holdings and transactions.

Benefits of Depository

The benefits of participation in a depository are:

Immediate transfer of securities; No stamp duty on transfer of securities; Elimination of risks associated with physical certificates such as bad delivery,

fake securities, loss, theft, mutilation due to careless handling, etc.; Reduction in paperwork involved in transfer of securities; Reduction in transaction cost; Nomination facility; Change in address recorded with DP gets registered electronically with all

companies in which investor holds securities eliminating the need to correspond with each of them separately;

Transmission of securities is done by DP eliminating correspondence with companies;

Convenient method of consolidation of folios/accounts; Holding investments in equity, debt instruments and Government securities in a

single account;



Automatic credit into demat account, of shares, arising out of split/consolidation/merger etc

Role of a Depository Participant

A Depository Participant(DP) is an agent appointed by the Depository and is authorized to offer depository services to all investors. An investor cannot directly open a Demat account with the depository. An investor has to open his / her account through a DP only. The DP in turn opens the account with the Depository. The DP in turn takes up the responsibility of maintaining the account and updating them as per the instructions given by the investor from time to time. The DP generates and provides the holdings statement from time to time as required by the investor. Thus, the DP is basically the interface between the investor and the Depository.

DP Services offered at SSJ

As a depository participant with CDSL, we offer the following services:

Account Opening

To open an account with us, all you have to is fill in the demat account opening form and submit it along with proof of identity, proof of address and passport size photograph. Alternatively, you can contact us and we will assist you with a better understanding of the products as well as procedure for getting your account operational.

On receipt of the client account form we will verify the mandatory requirements and attachments. Once verification is complete, we will allot a unique BO ID (Beneficial Owner Identification Number), which is required to be quoted for all future transactions.



Dematerialisation

This is the process by which physical certificates of an investor are converted to an equivalent number of securities in electronic form and credited in the investor's account with its Depository Participant (DP).

Rematerialisation

This refers to conversion of the securities held in electronic form in a demat account to an equivalent number of securities in physical form (certificates). Rematerialisation is, thus, the reverse process of Dematerialisation.

Transfer of securities

The power of attorney submitted by you with respect to the Demat Account enables us to credit your demat account whenever purchase of securities takes place. In case of sale of securities, we directly debit your demat account to transfer the securities to the Clearing House / Clearing Corporation to complete your pay-in obligation. Such a system avoids unnecessary delays and avoids issuance of multiple instructions from the client.

Pledging/Hypothecation

Securities held in demat form can be pledged / hypothecated to avail of loan/credit facility or for other purposes. This allows you to get liquidity without having to sell your shares. The securities continue to be in pledgor’s account and therefore all benefits viz. Dividend, Bonus and Rights accrue to the account holder and not the pledgee.

Corporate Benefit - Dividend, Bonus or Rights Issue

In case the company in which you hold shares in demat form announces any corporate benefits like bonus, dividend etc., the same are credited to your relevant account in a hassle-free and transparent manner.

Public Issue

When subscribing for shares in a public issue, you can request for securities, if allotted, to be credited directly to your demat account and quote your



demat account for the purpose in the application form.

Nomination

You can make a nomination of your account in favour of any person by filing up the nomination details in the account opening form. This is to enable the nominee to receive the securities after the death of all the holder(s) of the demat account. An NRI can nominate another NRI or a resident Indian directly. But, the power of attorney holder cannot nominate on behalf of NRI. An NRI can be a nominee subject to the exchange control regulations in force from time to time.

Transmission

This is the process by which securities of a deceased account holder are transferred to the account of the surviving joint holder(s)/nominee/legal heirs of the deceased account holder.

SMS Alerts

SSJ Finance provides SMS Alerts through CDSL on your mobile phone for all debit/credit transactions in your Demat Account including IPO allotments. This service can be enjoyed at no additional cost.

DP Charges

SSJ FINANCE & SECURITES PRIVATE LIMITED

CHARGES FOR INDIVIDUAL AND CORPORATE DEMAT ACCOUNTS

No. Service Trades executed throughSSJ FINANCE GROUP

(with POA)

Trades executed through other Clearing Members

1.

Account Maintenance:

Individual1

Others

Rs.250/- p.a.

Rs.500/- p.a.

Rs.250/- p.a.

Rs.500/- p.a.

2. Account closing charges NIL NIL

3. Custody Charges(Per ISIN / per month)

NIL NIL



4. DematerialisationRs.2/- per certificate subject to minimum charge of Rs.20/- + courier charges

Rs.2/- per certificate subject to minimum charge of Rs.20/- + courier charges

5. Rematerialisation Rs.25/- per certificate Rs.25/- per certificate

6.

Settlement fees for On & Off-market trades:Buy :

Sell :

NIL

0.01% on the value subject to a minimum of Rs.10/-

NIL


7.Inter-Depository Transfer (Sell):



8.Pledge Creation / Cancellation / Invocation

Rs.25/- per transaction0.04% on the value subject to a minimum of Rs.25/-

9.Non-periodic Account Statement Mailing charges:

Rs.25/- Rs.25/-

10.Charges for Instructions Book

Rs.20/- for 20 leaves Rs.20/- for 20 leaves

Note:

1No AMC will be payable for the first year of operations for Individual accounts. The fee schedule is based on existing CDSL charges and is subject to change at the

sole discretion of CDSL / SSJ Finance & Securities Private Limited. All charges are payable monthly. Service Tax would be payable as applicable. One-time Account Opening charges of Rs. 600/- are payable, at the time of opening

Trading Account on NSE and BSE and demat account with the SSJ Finance Group.



Benefits of ARBITRAGE with SSJ…

At SSJ Finance, we have a highly experienced arbitrage desk at your service. You will enjoy the following benefits while executing your arbitrage transactions through us:

Expertise in identifying arbitrage opportunities and executing simple as well as complex strategies in large volumes.

Dedicated teams for equities and commodities segments. Support of strong Quantitative Research that allow us to analyse and identify

arbitrage oppportunities. A seamless facility to execute your arbitrage trades and earn the best possible

return on your capital, with limited or no risk. Sales Tax Registration Risk-reward profiling Experienced team that keeps you educated about such opportunities as well

as the risks associated with such a strategy, if any.



Delivery taken in Spot market treated as margin for the corresponding futures trades in equity and commodity segments. Therefore, there is optimal utilisation of capital.

Tax planning

Arbitrage

Arbitrage involves the simultaneous purchase and sale of an asset in order to profit from a temporary price differential, usually taking place on different exchanges or marketplaces. When used by academics, an arbitrage is a transaction that involves no negative cash flow at any probabilistic or temporal state and a positive cash flow in at least one state; in simple terms, “a risk-free profit”. If you want to replace the returns from your idle funds in fixed deposits with higher yielding returns, arbitrage is a good risk free investment option for you.

A person who engages in arbitrage is called an arbitrageur. The term is mainly applied to trading in financial instruments, such as bonds, stocks, derivatives, commodities and currencies.

If the market prices do not allow for profitable arbitrage, the prices are said to constitute an arbitrage equilibrium or arbitrage free market.

Risks involved in Arbitrage

Although arbitrage is considered to involve risk-free profit, there are some risks which may arise in any of the following situations:

Quick change in prices: While adopting an arbitrage strategy, it may not be possible to close two or three transactions at the same instant. Such failure to execute all parts of the transaction simultaneously can result in a situation where one part of the deal is closed, but a quick shift in prices makes it impossible to close the other at a profitable price.

Counter-Party Risk: The counter-party to one of the deals may fail to deliver as agreed. Though unlikely, this is a serious potential threat in view of the large quantities one must trade in order to make a profit on small price differences. If leverage or borrowed money is used, these risks become magnified.

Arbitrage between different assets: Sometimes, arbitrage transactions are undertaken between items/assets which are not identical. In spite of the difference in the nature of the assets, the purchase and sale are made on the assumption that the prices of the articles are



correlated or predictable. In such situations, if price movement is contrary to ones expectations, it can produce huge losses.

Risk in Market Arbitrage: If one is trying to profit from a price discrepancy between a stock on BSE and the same stock on NSE, he may perform one leg of the arbitrage transaction by purchasing a large number of shares on BSE, but may find that he is unable to sell simultaneously on NSE. This will expose the arbitrageur to an unhedged risk position

Price Convergence – A Result of Arbitrage

Since arbitrage is based on making profit from temporary price discrepencies, it results inconvergence in prices in different markets. As a result of arbitrage, currency exchange rates, prices of commodities and prices of securities tend to converge to the same prices in all markets, in each category. The market efficiency can be judged from the speed at which the prices converge. As long as buyers are not prohibited from reselling and the transactions cost of buying, holding and reselling are small relative to the difference in prices in the different markets, arbitrage tends to reduce price discrimination by encouraging people to buy the asset where its price is lower and resell it where the price is higher

Arbitrage Strategies

Various different kinds of Arbitrage Strategies are in use depending on the kind of markets, time period, nature of assets that are involved. We, at SSJ Finance can help



you choose the right trading strategy that suits your profile and requirement.

Some of the different types of arbitrage strategies are listed below. Please click on the name of the strategy to get a detailed insight on the same.

Statistical Arbitrage Market Arbitrage Risk Arbitrage Volatility arbitrage Index Arbitrage Spread Trading Cash & Carry Arbitrage Reverse Cash-and-Carry Arbitrage

Statistical Arbitrage:

This is a profit situation arising from pricing inefficiencies between securities. Investors identify the arbitrage situation through mathematical modelling techniques. Statistical arbitrage is not without risk; it depends heavily on the ability of market prices to return to a historical or predicted normal.

Market Arbitrage:

This refers to purchasing and selling the same security at the same time in different markets to take advantage of a price difference between the two separate markets. An arbitrageur would short sell the higher priced stock and buy the lower priced one. The profit is the spread between the two assets.

Risk Arbitrage:

This is a broad definition for three types of arbitrage that contain an element of risk. In theory true arbitrage is riskless, however, the world in which we operate offers very few of these opportunities. Despite these forms of arbitrage being somewhat risky, they are


http://www.ssjfinance.com/ARBITRAGE/ArbitrageStrtagies.shtml#Reverse

http://www.ssjfinance.com/ARBITRAGE/ArbitrageStrtagies.shtml#Cash

http://www.ssjfinance.com/ARBITRAGE/ArbitrageStrtagies.shtml#Spread

http://www.ssjfinance.com/ARBITRAGE/ArbitrageStrtagies.shtml#Index

http://www.ssjfinance.com/ARBITRAGE/ArbitrageStrtagies.shtml#Volatility

http://www.ssjfinance.com/ARBITRAGE/ArbitrageStrtagies.shtml#Risk

http://www.ssjfinance.com/ARBITRAGE/ArbitrageStrtagies.shtml#Market

http://www.ssjfinance.com/ARBITRAGE/ArbitrageStrtagies.shtml#Statistical


still relatively low-risk trading strategies which money managers (mainly hedge fund managers) and retail investors alike can employ.

Merger and acquisition arbitrage - The simultaneous purchase of stock in a company being acquired and the sale (or short sale) of stock in the acquiring company.

Liquidation arbitrage - The exploitation of a difference between a company's current value and its estimated liquidation value.

Pairs trading - The exploitation of a difference between two very similar companies in the same industry that have historically been highly correlated. When the two company's values diverge to a historically high level you can take an offsetting position in each (e.g. go long in one and short the other) because, as history has shown, they will inevitable come to be similarly valued.

Volatility arbitrage:

This is a type of statistical arbitrage that is implemented by trading a delta neutral portfolio of an option and its underlying. The objective is to take advantage of differences between the implied volatility of the option, and a forecast of future realized volatility of the option's underlying. In volatility arbitrage, volatility is used as the unit of relative measure rather than price - that is, traders attempt to buy volatility when it is low and sell volatility when it is high. So long as the trading is done delta-neutral, buying an option is a bet that the underlier's future realized volatility will be high, while selling an option is a bet that future realized volatility will be low. Because of put call parity, it doesn't matter if the options traded are calls or puts. Being long in a delta neutral call results in the same returns as being long in a delta neutral put.

Index Arbitrage:

This ia a strategy designed to profit from temporary discrepancies between the prices of the stocks comprising an index and the price of a futures contract on that index. By buying either the stocks or the futures contract and selling the other, an investor can sometimes exploit market inefficiency for a profit. Like all arbitrage opportunities, index arbitrage opportunities disappear rapidly once the opportunity becomes well-known and many investors act on it. Index arbitrage can involve large transaction costs because of the need to simultaneously buy and sell many different stocks and futures, and so only large money managers are usually able to profit from index arbitrage.

Spread Trading:



A futures spread (or spread) is a long-short futures position that provides exposure to a spread or difference in two prices.

Buying a Spread: When actual spread between two futures contracts of the same asset widens, it is desirable to buy the near month contract since it is underpriced and sell the far month contract since it is overpriced.This strategy is called “buying a spread”.

Selling a Spread: When actual spread between two futures contracts of the same asset narrows, it is desirable to sell the near month contract because it is overpriced and buy the far month contract because it is underpriced. This strategy is called “selling a spread”. In either case of buying or selling a spread, the trader can square off his /her position when the spread corrects and the contracts are traded at their fair spread.

Spreads can be intracommodity(or calendar spread) with same underlying but with different maturities, or intercommodity with different underlying typically having same maturity or on different exchanges using futures on the same underlying.

Exchanges generally have less strict margin requirements for futures spreads because through spread trading, speculators face reduced risk compared to trading outright futures. This happens because the long and short futures that comprise a spread are usually correlated and tend to hedge one another.

Cash & Carry Arbitrage:

Cash & carry arbitrage between spot and futures refers to a basis trade involving a long cash position exactly offset by a short futures position. The holder of the position believes that the futures contract is expensive (futures price of the asset is more than the spot price of the asset plus cost of carrying the asset to the futures expiry date). He shorts the future, borrows at money market rates to finance a long position in the underlying, and either delivers the asset into the futures contract or waits for a narrowing of the basis and closes out the positions in which case he effectively collects the yield on a synthetic money market instrument. It is also called buying the basis. This arbitrage and its opposite, reverse cash-and-carry, ensure an efficient relationship between cash and derivatives markets.

Cash & carry arbitrage between two futures contracts refers to buying the near month futures contract with borrowed funds with the intention of taking delivery and selling the far month futures contract with the intention of giving delivery. The above opportunity arises when futures price of the far month contract is more than the near month futures price plus cost of carrying the asset from the near month to the far month expiry date.



Reverse Cash-and-Carry Arbitrage:

This refers to the creation of a low-risk or neutral position by simultaneously selling assets and buying the corresponding futures contract. Reverse Cash-and-Carry Arbitrage opportunity between spot and futures prices arises when the futures price of the asset is less than the spot price of the asset plus the cost of carrying the asset to the futures expiry date. Similarly Reverse Cash-and-Carry Arbitrage opportunity between two futures contracts arises when the far month futures price is less than the near month futures price plus the cost of carrying the asset from the near month to the far month expiry date

NRI Services

SSJ Finance and Securities Ltd is one-stop-shop to Non-Resident Indians (NRIs) for investments in Indian Capital Market. NRIs can invest in both Primary Market and Secondary Market through us. We offer wide range of services to ensure that NRIs feel at home while they take their investment decisions. Using the best of technology to provide you the best of services continues to be one of our Key Focus Areas.

Featured Services

Interlinked Demat + trading. Get free Stock Recommendations. Dedicated Professionals for your services.



Benefits of IPO Investing with SSJ

The IPO market in India has now become an attractive avenue for investment not only for regular traders, but also for new investors who so far have been averse to participating in the secondary markets on account of volatility and risk factors attached. The recent success witnessed in IPO issues along with handsome returns on listing, have made IPOs a source of great enthusiasm and excitement among investors across the country. As more and more companies are tapping the primary markets for raising capital, the IPO market is bound to grow and evolve at a fast pace. In such a lucrative scenario, we, at SSJ Finance offer you the opportunity to benefit from use of our IPO services to invest in the primary market.

At SSJ Finance, we provide you with complete ease and convenience in completing the IPO application process. Services relevant to the Primary market offered by us to investors are as follows:

Analysis of Primary market offerings to help you make informed investment decisions

Bidding and collection of IPO forms at several locations in India through all our branch offices.

Regular updates provided on our website on ongoing and forthcoming IPO issues. Other relevant details pertaining to closed issues, new listings, basis of allotment and draft prospectus are also made available.

Sections such as New Issue Monitor, IPO News and research reports provided by us on our website enable you to monitor and compare the performance of various IPOs.

What is an IPO?

An Initial Public Offer or IPO is the first sale of a company’s shares to investors on a public stock exchange. While IPOs are effective at raising capital, being listed on a stock exchange imposes regulatory compliance and reporting requirements.

When a shareholder sells shares it is called a “secondary offering” and the shareholder, not the company who originally issued the shares, retains the proceeds of the offering. To avoid confusion, it is imporatnt to remember that only a company which issues shares can make a “primary offering”. Secondary offerings occur on the “secondary market”, where shareholders (not the issuing company) buy and sell shares to each other.



Different Types of IPOs

There are two types of IPOs. These are listed below:

Fixed Price Issue – In this case, the issue price is pre ascertained by the issuer. Book Building – In this case, an indicative price range is declared by the company for a

public offer of its equity shares. Interested investors place bids within this price range for the quantum of securities they want to subscribe to. Prospective investors can revise their bids at anytime during the bid period, that is, the quantity of shares or the bid price or any of the bid options. Usually, the bid must be for a minimum of 500 equity shares and in multiples of 100 equity shares thereafter. By recording the bids (quantum of shares ordered and the respective prices offered) received in a “book”, the issuer makes an assessment of the demand for the securities proposed to be issued. After the bid closing date, the book runner and the company fix the issue price and decide the allocation to each syndicate member. Thus, book building method helps in optimum price discovery for the security

Strategy Guide to successful IPO investing

Investors are people. They like novelty; get excited by something new, especially if it holds the promise of making them a whole lot richer. Be careful. Amateur and professionals alike tend to lose their minds in bull markets, particularly when a hot initial public offering, or IPO, makes its appearance in the market.

Just because a company persuades an investment bank to take it public doesn't mean it's a worthwhile investment. Here are a few guidelines that may help you make the right choice while selecting an IPO for investment. Please read the offer document and study the IPO issue with the following considerations in mind:

Understand the real need for the product or service this company is planning to market. As we said earlier, new issues often come to market in industry clusters. As a result, not every company going public has a viable product or service to offer.

Study company performance. It is important that the company has a track record of good operational performance indicated by figures of sales, profit, EPS etc. You must also look at the performance of the group companies and the inter-company transactions within the group, ensuring that there are no dubious transactions. If any loans are given to the group companies, you must study whether they are paying reasonable interest and whether the loan is likely to be repaid.

Check promoter’s background, the experience he has in the industry, the



performance of the other companies promoted by him, his track record, investor complaints etc. Read the risk factors very carefully, especially those pertaining to the promoter/management. Check for any serious litigation against the promoter or the company.

A good promoter or management team ensures regular growth in the company, by constantly looking for new business expansion opportunities. In the short to medium term, businesses may face ups and downs, but long term success can be significantly influenced by good management which takes all necessary steps to ensure profitable performance. With a reliable and trustworthy management in charge of the company, you can be reasonably sure that your money will not be deliberately misused or siphoned off.

Study future prospects of the Company, including expansion plans, plans for utilisation of funds raised, etc. Future prospects play an important role in the performance of the scrip on the stock exchange.

Some investors feel as though they just don’t "get" a company's vision. Very often, this may happen because the company may not have a vision at all. This is something investors must watch out for in a hot IPO market where several companies with no path to profitability go public.

Evaluate fair price. Based on factors such as the fundamentals of the company, the company’s EPS and the average industry PE, you can derive the fair price of any scrip. On comparison with the issue price, you will be able to conclude whether the issue is undervalued or overvalued. In case the issue is overpriced, it will tend to quote below issue price over a period of time, making it profitable to enter later at a lower price, rather than at the IPO stage. A high price is likely to reduce the prospects of appreciation of the scrip at the exchange, thereby defeating your purpose of investing.

Have patience. If you truly believe in the company's products, strategy, and management, buying its shares and holding on for a long time will make you a lot more money with a lot less work than will trading new issues recklessly. This does not mean you should never sell, of course. Just make sure you are selling because the company’s fundamentals have changed, not just because the company’s stock price has gone down.



With these investing principles in mind, you have a much higher chance of having a successful IPO investing experience.

Benefits of Mutual Fund Investing with SSJ

Mutual Funds (MFs) are undoubtedly an important product innovation in the financial field, as an instrument of raising capital from the wider public for corporate enterprise growth. With a wide range of mutual funds available in the market, finding the right fund can be difficult.

At SSJ Finance, our goal is to recommend mutual funds that fit your investment objectives and risk tolerance and help you understand how well your current mutual funds are performing in today's market. We constantly strive to help you, the investor, make deliberate, thoughtful decisions that match your personal needs. We are dedicated to providing all our clients with the highest level of service.

As an SSJ client, you can invest in a wide range of mutual funds based on their differing financial objectives and create a comprehensive investment strategy suitable for your financial goals. (Investors should carefully consider the investment objectives, risks, charges and expenses prior to investing. The prospectus contains this and other important information and should be read carefully before you invest)



So if you are looking to invest in mutual funds or have any queries relating to the same, please contact us. We will respond to your query at the earliest.

What is a Mutual Fund?

Mutual funds provide a way for investors to "mutually" share the benefits of investing. A mutual fund is an investment company that professionally invests a pool of money on behalf of individuals and institutions with similar investment goals by issuing units to the investors and investing funds in securities in accordance with objectives as disclosed in offer document.

Investors of mutual funds are known as unitholders. Mutual fund issues units to the investors in accordance with quantum of money invested by them.The profits or losses are shared by the investors in proportion to their investments

Investments in securities are spread across a wide cross-section of industries and sectors and thus the risk is reduced. Diversification reduces the risk because all stocks may not move in the same direction in the same proportion at the same time.

Different Types of Mutual Funds

A wide variety of Mutual fund schemes cater to different preferences of the investors based on their financial position, risk tolerance and return expectations. The mutual fund schemes can be broadly categorized under 3 headings:

Funds by Structure/ Maturity Period Funds by Investment objective Other Schemes

Funds by Structure/ Maturity Period:These include open ended and close ended schemes.

An open ended fund provides the investors with an easy entry and exit option at NAV (Net Asset Value), which is declared on a daily basis. The key feature of these schemes is liquidity.

A close-ended fund has a stipulated maturity period e.g. 5-7 years. The fund is open for subscription only during a specified period at the time of launch of the




scheme. Investors can invest in the scheme at the time of the initial public issue and thereafter they can buy or sell the units of the scheme on the stock exchanges where the units are listed. In order to provide an exit route to the investors, some close-ended funds give an option of selling back the units to the mutual fund through periodic repurchase at NAV related prices. SEBI Regulations stipulate that at least one of the two exit routes is provided to the investor i.e. either repurchase facility or through listing on stock exchanges. These mutual funds schemes disclose NAV generally on weekly basis.

Funds by Investment Objective: A scheme can also be classified as growth scheme, income scheme, or balanced scheme considering its investment objective. Such schemes may be open-ended or close-ended schemes as described earlier. Such schemes may be classified mainly as follows:

Growth/ Equity Oriented Schemes provide capital appreciation over medium to long – term by investing a major part of their corpus in equities. Such funds have comparatively high risks. These schemes provide different options to the investors like dividend option, capital appreciation, etc. and the investors may choose an option depending on their preferences. The investors must indicate the option in the application form. The mutual funds also allow the investors to change the options at a later date. Growth schemes are good for investors having a long-term outlook seeking appreciation over a period of time.

Income/ Debt Oriented Schemes provide regular and steady income to investors by investing in fixed income securities such as bonds, corporate debentures, government securities and money market instruments. Hence they are less risky compared to equity schemes. These funds are not affected because of fluctuations in equity markets. However, opportunities of capital appreciation are also limited in such funds. The NAVs of such funds are affected because of change in interest rates in the country. If the interest rates fall, NAVs of such funds are likely to increase in the short run and vice versa. However, long term investors may not bother about these fluctuations.

Balanced Funds provide both growth and regular income as such schemes invest both in equities and fixed income securities in the proportion indicated in their offer documents. These are appropriate for investors looking for moderate growth. They generally invest 40-60% in equity and debt instruments. These funds are also affected because of fluctuations in share prices in the stock markets. However, NAVs of such funds are likely to be less volatile compared to pure equity funds.



Money Market or Liquid Funds provide easy liquidity and preserve capital but generate moderate income. As they invest exclusively in safer short- term instruments such as treasury bills, certificates of deposit, commercial paper, inter bank call money and government securities. These funds are appropriate for corporate and individual investors as a means to park their surplus funds for short periods.

Gilt Funds invest exclusively in government securities. Government securities have no default risk. NAVs of these schemes also fluctuate due to change in interest rates and other economic factors as is the case with income or debt oriented schemes.

Other Schemes: These include index schemes, sector specific schemes, tax saving schemes and fund of funds schemes.

Index Funds replicate the portfolio of a particular index such as the BSE Sensitive index, S&P NSE 50 index (Nifty), etc. These schemes invest in the securities in the same weightage as in the index. NAVs of such schemes would rise or fall in accordance with the rise or fall in the index, though not exactly by the same percentage due to some factors known as "tracking error" in technical terms.There are also exchange traded index funds launched by the mutual funds which are traded on the stock exchanges.

Sector specific Funds/ Schemes invest in the securities of only those sectors or industries as specified in the offer documents. e.g. Pharmaceuticals, Software, Fast Moving Consumer Goods (FMCG), Petroleum stocks, etc. The returns in these funds are dependent on the performance of the respective sectors/industries. While these funds may give higher returns, they are more risky compared to diversified funds. Investors need to keep a watch on the performance of those sectors/industries and must are traded on the stock exchanges. exit at an appropriate time. They may also seek advice of an expert.

Tax Saving Schemes offer tax rebates to the investors under specific provisions of the Income Tax Act, 1961 as the Government offers tax incentives for investment in specified avenues. e.g. Equity Linked Savings Schemes (ELSS). Pension schemes launched by the mutual funds also offer tax benefits. These schemes are



growth oriented and invest pre-dominantly in equities. Their growth opportunities and risks associated are like any equity-oriented scheme.

Fund of Funds (FoF) scheme invests primarily in other schemes of the same mutual fund or other mutual funds. An FoF scheme enables the investors to achieve greater diversification through one scheme. It spreads risks across a greater universe.

Why invest in Mutual Funds?

Mutual funds are popular investments, primarily because of their numerous benefits:

Diversification: Mutual funds help you diversify your portfolio, or spread your money over a number of different investments that are handpicked and tracked by professional money managers. This strategy can help decrease risk to your portfolio because when your investment return isn't dependent on any single investment, the impact of one poor performer on your portfolio is reduced.

Convenience: Mutual funds make investing easy and flexible by emphasizing convenience to the investor in several ways:

o Low minimum investment: Most mutual funds require low minimum investments making it easy for investors to build a diverse portfolio fairly quickly.

o Easy liquidity: You can cash in any or all of your mutual fund shares on any business day. The value of your shares is based on the closing market price (net asset value, or NAV) of the underlying securities.

o Automatic reinvestment: You can automatically purchase more mutual fund shares by reinvesting your dividends and capital gains distributions.

o Systematic withdrawal: You can request that regular payments from systematically selling shares be sent directly to you.

Professional Management: Experienced, full-time money managers manage each mutual fund. These professional money managers:

o Research general market and economic trends . Using the information they gather, the fund's professional money managers decide when to buy or sell securities to increase return potential and keep constant tabs on individual



holdings and the overall performance of particular markets, adjusting the portfolio for the strongest possible performance.

o Strive to achieve specific objectives : Because each fund has a specific investment objective, such as long-term growth or aggressive growth, managers can focus on the strategic goals of their funds.

Financial benefits: These include:

o Mutual fund unitholders can earn dividends on their mutual fund units.o Unitholders can also profit from the sale of their units if they sell them for

more than their original value.*o Unitholders can receive their dividend payments directly or reinvest them

back into the fund and purchase additional units.

(*An investment in mutual funds will fluctuate such that an investor's shares when redeemed may be worth more or less than the original investment)

Systematic Investment Plans

Investing regularly through a Systematic Investment Plan (SIP) in an equity fund is one strategy that can ensure success to a large extent for those who are looking to build up their capital over the longer term and are not familiar with equity markets. It is a proven fact that a steady saving and investing plan helps pursue financial goals. What SIP really means is that you invest a fixed sum every month.

Some of the Benefits of SIPs are as follows:

Rupee Cost Averaging - SIP makes market timing irrelevant. In other words, you can invest a certain amount of money every month at various entry prices buying fewer units when the share prices are high and more units when the share prices are low. Besides, you take advantage of the fact that over a period of time stock markets generally go up, so your average cost price tends to fall below the average NAV. This "averaging" ensures that you buy at different levels, not just the top.

Benefit of Compounding - The profits you earn from your investments get reinvested. Therefore you earn returns on your primary investments and reinvested profits.



Cost Effective Method of Investment - Instead of blocking your money by making a one-time investment, in an SIP, you can spread the same amount over a certain period of time and maintain liquidity.

Building for the Future - SIP is an effective method of ensuring regular savings and achieving your short-term or long-term financial goals. It is also an excellent method of utilizing your funds, which may be, otherwise, lying idle.

Step-wise Approach to an SIP

Choose the amount you want to invest at each interval. (The amount must be such that you will be comfortable investing regularly over the long term)

Choose the frequency of your investment - every month, every quarter, every six months.

Continue investing the same amount each period irrespective of whether the market falls or rises.

Maintain a long-term perspective. Ignore the day-to-day fluctuations in the market. Keep investing over a long period of time to give your money a chance to grow

Strategy Guide to successful MF investing

With the stock market near record territory and rising volatility in global financial markets, there's no shortage of mutual fund advice on how to master the markets. For most investors, sifting through all the advice and filtering out the background noise can be a daunting and cumbersome experience.

However, there are certain basic guidelines which can make your decision relatively easier. To ensure you areselecting the right type of funds that are appropriate for your needs, consider the following Do’s & Don’ts:

Do's

Determine your investment objectives. Are you investing for preserving principal, generating income, paying for a child's education or saving for



retirement? Choose a mutual fund whose objective is in line with your investment goal.

Decide the time horizon you are looking to invest for-3 months, 3 years or 3 decades. This will help you assess your risk tolerance. The longer your time horizon, the more risk you will be able to take

Consider your Investment stage in terms of life-cycle while choosing a fund. During your working or accumulation years, growth-oriented strategies will attain higher total returns than income-oriented strategies. As you approach retirement, possibly a balanced-oriented strategy may be more appropriate to conserve your accumulated assets. Finally, in your retirement, income and stability would most likely be your priorities, although some growth is also important to help protect against inflation. These are general guidelines -- your return objectives and time horizon should govern your strategy.

Assess your risk tolerance level. Which of the following 3 categories do you fall in?

Conservative - will accept lower returns to minimize risk.

Moderate - will accept average price fluctuations to pursue higher returns.

Aggressive - will accept above average price fluctuations to seek above average returns.

Answering this question will help you in choosing the right scheme. Before you invest, be sure to read a fund's prospectus and shareholder reports to learn about its investment strategy and the potential risks. Funds with higher rates of return may take risks that are beyond your comfort level and are



inconsistent with your financial goals.

As with any business, running a mutual fund involves costs — including shareholder transaction costs, investment advisory fees, and marketing and distribution expenses. Funds pass along these costs to investors by imposing fees and expenses. It is important that you study the fund's fee table and compare the fees among various fund groups before choosing a fund because the fees significantly lower your returns.

Analyse your existing portfolio. Study the kinds of funds that are a part of your portfolio – Large cap, Mid cap, Flexi cap, Balanced Funds, Tax planning funds etc. Then see whether the fund you are considering for investment will add any value to your existing portfolio and whether it falls in line with your investment objectives and asset allocation.

Additional Do’s - specific to New Fund Offerings (NFOs)

Check whether the NFO really has something new to offer which will add value to your portfolio. Either the investment strategy of the fund should be new or at least it should be a new scheme offered by an existing AMC you are comfortable with. Unless something different is offered it may be prudent to invest in a fund which already has a track record, and whose portfolio, investment strategies and expenses are all known to you.

Before investing in an NFO, study the performance of other schemes managed by the fund manager of the NFO, especially during periods of market turmoil.

Check the stability of the investment team of the fund house and the number of schemes it is managing. Be careful while investing in fund houses which keep introducing new NFOs in the market at a faster-than-required pace. The AMC’s performance is more important than the fund manager’s background because the recommendations of the research teams of the AMC and the investment philosophy of the AMC ultimately guide the fund managers to invest. Moreover, even if a fund manager were to quit, a good AMC would be able find another competent fund manager.



As per Sebi guidelines, mutual funds can charge up to 6% of their NFO collections as ‘cost of the issue’ expenses to the scheme. These include marketing expenses incurred on advertisements, road shows, offer documents, incentives to distributors etc. Since these expenses are written off from the NAV over a period of 5 years, all things remaining the same, an NFO will offer net lower returns vis-à-vis an existing scheme where the expenses have already been adjusted in the previous years.

If after doing all of the above, you are still not clear about whether you should invest in a fund, seek our advice and our concerned representatives will assist you.

Don'ts

‘At par’ NAV has absolutely no role to play in your future returns. Do not assume that getting the units of the scheme at par i.e. Rs. 10 means getting it cheap. Whether the NAV is 10 or 100 makes no difference. The NAV of an existing scheme is higher merely for the fact that its’ portfolio has appreciated since the time it built it’s portfolio. Going forward, the returns over a given period of time will be same from an existing portfolio (with a higher NAV) and an identical new portfolio (with Rs.10 NAV). The earlier appreciation of the old fund does not make it expensive. What you should be concerned about is the% fall or% rise. A Re. 1 fall in a NAV 10 fund is the equivalent of Rs.10 fall in a NAV 100 fund. In fact Rs.100 means proven competence and a long track record of capital appreciation.

Do not have investments in either too few or too many mutual fund schemes. An ideal number would be between 4 and 10. Your investment should be spread across different Mutual Funds, fund managers, investing styles, expense ratios, portfolio turnover and market capitalization and diversified between equity, balanced and tax planning funds etc. Invest in sectoral funds only if you are very bullish on the sector concerned and have a good knowledge of sector performance.

Do not fall for fancy terminology used for marketing any scheme. Be guided by the basics of the fund. If there is any confusion it is preferable to invest in



an existing fund with longer track records having similar investment goals and strategies.

Marketing strategy is a process that can allow an organization to concentrate its limited

resources on the greatest opportunities to increase sales and achieve a sustainable

competitive advantage. A marketing strategy should be centered around the key concept

that customer satisfaction is the main goal.

Key part of the general corporate strategy

Marketing strategy is a method of focusing an organization's energies and resources on a

course of action which can lead to increased sales and dominance of a targeted market

niche. A marketing strategy combines product development, promotion, distribution,

pricing, relationship management and other elements; identifies the firm's marketing

goals, and explains how they will be achieved, ideally within a stated timeframe.

Marketing strategy determines the choice of target market segments,

positioning, marketing mix, and allocation of resources. It is most effective when it is an

integral component of overall firm strategy, defining how the organization will


http://en.wikipedia.org/wiki/Marketing_mix

http://en.wikipedia.org/wiki/Customer_satisfaction

http://en.wikipedia.org/wiki/Competitive_advantage


successfully engage customers, prospects, and competitors in the market arena. Corporate

strategies, corporate missions, and corporate goals. As the customer constitutes the source

of a company's revenue, marketing strategy is closely linked with sales. A key component

of marketing strategy is often to keep marketing in line with a company's

overarching mission statement.

Basic theory:

1. Target Audience

2. Proposition/Key Element

3. Implementation

Tactics and actions

A marketing strategy can serve as the foundation of a marketing plan. A marketing plan

contains a set of specific actions required to successfully implement a marketing strategy.

For example: "Use a low cost product to attract consumers. Once our organization, via

our low cost product, has established a relationship with consumers, our organization will

sell additional, higher-margin products and services that enhance the consumer's

interaction with the low-cost product or service."

A strategy consists of a well thought out series of tactics to make a marketing plan more

effective. Marketing strategies serve as the fundamental underpinning by marketing plans

designed to fill market needs and reach marketing objectives. Plans and objectives are

generally tested for measurable results.

A marketing strategy often integrates an organization's marketing goals, policies, and

action sequences (tactics) into a cohesive whole. Similarly, the various strands of the

strategy , which might include advertising, channel marketing, internet

marketing, promotion and public relations can be orchestrated. Many companies cascade

a strategy throughout an organization, by creating strategy tactics that then become

strategy goals for the next level or group. Each one group is expected to take that strategy

goal and develop a set of tactics to achieve that goal. This is why it is important to make

each strategy goal measurable.

Marketing strategies are dynamic and interactive. They are partially planned and partially

unplanned. See strategy dynamics.


http://en.wikipedia.org/wiki/Strategy_dynamics

http://en.wikipedia.org/wiki/Public_relations

http://en.wikipedia.org/wiki/Promotion_(marketing)

http://en.wikipedia.org/wiki/Internet_marketing

http://en.wikipedia.org/wiki/Internet_marketing

http://en.wikipedia.org/wiki/Channel_(marketing)

http://en.wikipedia.org/wiki/Advertising

http://en.wikipedia.org/wiki/Marketing

http://en.wikipedia.org/wiki/Marketing_plan

http://en.wikipedia.org/wiki/Mission_statement

http://en.wikipedia.org/wiki/Sales

http://en.wikipedia.org/wiki/Strategic_management

http://en.wikipedia.org/wiki/Strategic_management


Types of strategies

Marketing strategies may differ depending on the unique situation of the individual

business. However there are a number of ways of categorizing some generic strategies. A

brief description of the most common categorizing schemes is presented below:

Strategies based on market dominance - In this scheme, firms are classified based on

their market share or dominance of an industry. Typically there are four types of

market dominance strategies:

Leader

Challenger

Follower

Nicher

Porter generic strategies - strategy on the dimensions of strategic scope and strategic

strength. Strategic scope refers to the market penetration while strategic strength

refers to the firm’s sustainable competitive advantage. The generic strategy

framework (porter 1984) comprises two alternatives each with two alternative scopes.

These are Differentiation and low-cost leadership each with a dimension ofFocus-

broad or narrow.

Product differentiation (broad)

Cost leadership (broad)

Market segmentation (narrow)

Innovation strategies - This deals with the firm's rate of the new product development

and business model innovation. It asks whether the company is on the cutting edge of

technology and business innovation. There are three types:

Pioneers

Close followers

Late followers


http://en.wikipedia.org/wiki/Pioneers

http://en.wikipedia.org/wiki/Business_model_innovation

http://en.wikipedia.org/wiki/Market_segmentation

http://en.wikipedia.org/wiki/Cost_leadership

http://en.wikipedia.org/wiki/Product_differentiation

http://en.wikipedia.org/wiki/Porter_generic_strategies

http://en.wikipedia.org/wiki/Market_dominance


Growth strategies - In this scheme we ask the question, “How should the firm grow?”.

There are a number of different ways of answering that question, but the most

common gives four answers:

Horizontal integration

Vertical integration

Diversification

Intensification

A more detailed scheme uses the categories[6]:

Prospector

Analyzer

Defender

Reactor

Marketing warfare strategies - This scheme draws parallels between marketing

strategies and military strategies.

Marketing participants often employ strategic models and tools to analyze marketing

decisions. When beginning a strategic analysis, the3Cs can be employed to get a broad

understanding of the strategic environment. An Ansoff Matrix is also often used to

convey an organization's strategic positioning of their marketing mix. The 4Ps can then

be utilized to form a marketing plan to pursue a defined strategy.

There are many companies especially those in the Consumer Package Goods (CPG)

market that adopt the theory of running their business centered around Consumer,

Shopper & Retailer needs. Their Marketing departments spend quality time looking for

"Growth Opportunities" in their categories by identifying relevant insights (both mindsets

and behaviors) on their target Consumers, Shoppers and retail partners. These Growth

Opportunities emerge from changes in market trends, segment dynamics changing and

also internal brand or operational business challenges.The Marketing team can then

prioritize these Growth Opportunities and begin to develop strategies to exploit the

opportunities that could include new or adapted products, services as well as changes to

the 7Ps.


http://en.wikipedia.org/wiki/4P's

http://en.wikipedia.org/wiki/Marketing_mix

http://en.wikipedia.org/wiki/3C's

http://en.wikipedia.org/wiki/Marketing_warfare_strategies

http://en.wikipedia.org/wiki/Marketing_strategy#cite_note-5


Real-life marketing

Real-life marketing primarily revolves around the application of a great deal of common-

sense; dealing with a limited number of factors, in an environment of imperfect

information and limited resources complicated by uncertainty and tight timescales. Use of

classical marketing techniques, in these circumstances, is inevitably partial and uneven.

Thus, for example, many new products will emerge from irrational processes and the

rational development process may be used (if at all) to screen out the worst non-runners.

The design of the advertising, and the packaging, will be the output of the creative minds

employed; which management will then screen, often by 'gut-reaction', to ensure that it is

reasonable.

For most of their time, marketing managers use intuition and experience to analyze and

handle the complex, and unique, situations being faced; without easy reference to theory.

This will often be 'flying by the seat of the pants', or 'gut-reaction'; where the overall

strategy, coupled with the knowledge of the customer which has been absorbed almost by

a process of osmosis, will determine the quality of the marketing employed. This, almost

instinctive management, is what is sometimes called 'coarse marketing'; to distinguish it

from the refined, aesthetically pleasing, form favored by the theorists.



Project Profile: -

“ Marketing Strategies Of SSJ”

Objectives Of study: -

To Understand and analyse the marketing strategies of SSJ.

To understand and analyse online trading at SSJ.

To improv the format of DSR (Daily Sales Report)

Methodology Adopted: -

The methodology adopted for the present study was focus discussion, interview and close

observation through in-house study. Since the project is based on action research it was

necessary to build rapport to collect maximum information from the Client. Hence the



research spent considerable time with the people who reside in nearby encompassing city.

The main focus was to do with the assessing the satisfaction level of investors and

explore the possibility of more sound arrangement of disseminating outlook information

system.

Marketing Research: -

WHAT IS MARKETING RESEARCH ?

Marketing research is the function which likes the consumers, customers &

public t the marketer through information which is used to identify & define marketing

opportunities & problems, generate, refine & evaluate marketing action; monitor

marketing performances & improve understanding of marketing as a process.

TYPES OF MARKETING RESEARCH

On the basis of fundamental objectives of the research, marketing research

projects are classified into two branches:

Exploratory Research

Conclusive Research

EXPLORATORY RESEARCH:

It seeks to discover new relationships. All marketing

research projects start with it. This is a preliminary phase & is absolutely essential in

order to obtain a proper definition of problems at hand. The major emphasis is on the

discovery of ideas & insight.

Exploratory research looks for hypothesis in well-established fields of study. Hypothesis usually

comes from ideas developed in previous researches or are delivered from theory. Hypothesis is

tentative answer to the question that serves as guide for most of the research projects.



CONCLUSIVE RESEARCH:

Conclusive research provides information that helps the executive so that he can make a

rational decision. This study has done well while attempting to arrive at a more clear

description of an apparent problem.

Data Collection

Primary data: - which is collected by new research called primary data.

Personal Interview

Close observation

Survey conduction

Group Discussion

Secondary data: - already existing data is called secondary data. I collected

them by following method –

Internet

Books



ORGANIZATION STRUCTURE

Branch Manager

Senior Manager Sales

Manager Sales

Senior Relationship Manager Business Development Manager

(SRM) (BDM)

Relationship Manager Business Development Executive

(RM) (BDE)



Associate Relationship Manager

(ARM)

Dealer

Offerings

SSJ offers two products: - “Get More At SSJ.”

1. NS - Normal SSJ

2. PS - Power SSJ

NS – Normal SSJ: -

“A multitude of ways to access your account either through priority access to

Relationship Manager over phone OR online access to your Account & Research

Tools.”

Enjoy priority telephone access that gives you direct access to your Relationship Manager.

Stay on the top of your investments with a snapshot of your Account Statements. Get

access to Portfolio statement and access to digital contract notes.



PS – Power SSJ: -

“Trading just got faster”

It is advance trading software which great deals of versatility even at low band width

assuring speed and total functionality ensuring speed and total functioning of a broker’s

terminal. An active trader market execute traders and get confirmation of the some

computers terminal need to be 128 Bits Encrypted (Supported by explorer version 5 and

above)

Regardless of how the market is performing or which way the economic

winds are blowing as traders, are researching, charting, crafting a strategy, buying and

selling. Investors are getting in, getting out and moving on to the next trade. Choose from

a comprehensive offering of accounts, platform and product. Customize technology and

services to support the way of work.

Choose from a broad spectrum of sophisticated trading tools using a fast desktop

Trading Software. -Trading just got faster.

Features of PSS:

Live Streaming Quotes Fast Order Entry Tic by Tic Live Charts Technical Analysis Live News and Alerts

Extensive Reports for Real-time Accounting



Company

InternalExternal

Marketing Marketing

EmployeesInteractive Marketing Customers

SSJ: “ A Cut Above The Rest”

Service Industry is base on differentiation of the product and service SSJ is different from

its competitors because of following reason –

Internal Marketing: -

is to train and motivate employees to serve customers. The selection, training and

motivation of the employees will make a huge difference in customer satisfaction.


SSJ FINANCE


In SSJ the employees are well trained and motivated to work and they

work dedicatly. Because SSJ know that employee’s attitude will promote stronger

customer loyalty. SSJ designed a sound training programme and support and

rewards for good performance. They can use Internet, internal newsletters, daily

remainders, and employee roundtables to reinforce customer-centered attitude.

External Marketing: -

Describe the normal work to prepare, price, distribute and promote the service to

customers. Its is mainly for customers to provide better service for this purpose SSJ

is providing following unique services to his customers: -

1. Relationship Managers who are dedicated to supporting customers trading

and investing needs. They always keep in touch with client and they give

various tips to client by which he can invest in good stocks.

2. Dealers everyday give confirmations of the client’s whole day trading in the

evening after signing out from the Market.

SSJis providing Funding for trading to its client on nominal rates of interest i.e.

on 18% limit of funding is as follow

Delivery- for delivery trading SSJ providing 2 times funding

Intraday- for this type of trading SSJ is proving 8 times funding without charging

any interest.

SSJ Equity Analysis SSJ provide an analysis of more than 540 companies it

include current and future planning of various companies but this service is

optional for client.

Building and maintaining customer’s ideal portfolio demands objective, dependable

information. SSJ Equity Analysis helps satisfy that need by rating stocks based on



carefully selected, fact-based measures. And because we're not focused on

investment banking, SSJ don't have the same conflicts of interest as traditional

brokerage firms. This objectivity is an important difference in our ratings.

The SSJ Equity Analysis model attempts to gauge investor expectations, since stock

prices tend to move in the same direction as changes in investor expectations.

Stocks with low and potentially improving investor expectations tend to receive A

or B ratings

Stocks with high and potentially falling investor expectations tend to receive D or

E ratings

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

outperforming the market while E-rated stocks have a return outlook of strongly

under performing the market. Find out more about using SSJ Equity Analysis

In today’s scenario when all services are going to be online or in electronic form

SSJ is creating awareness of online trading that client can trade from anywhere

from the World.

Risk management team of SSJ taking care of client portfolio and whenever the

value of his portfolio will go decrease by 30% client always informed by his

Relationship Manager.

SSJ is providing a software called “Power SSJ” as describe above if a client have

his own PC and Internet then he can trade from his home or office.


http://indiabulls.com/new_layout/

http://indiabulls.com/new_layout/


In SSJ possibility of auction is very less because of large client base, so he can

sell shares anytime.

Depository Services: -

“Whatever your individual goals, we can help.”

SSJ is a depository participant with the National Securities Depository Limited and

Central Depository Services (India) Limited for trading and settlement of dematerialised

shares. SSJ performs clearing services for all securities transactions through its accounts.

Company offer depository services to create a seamless transaction platform – execute

trades through SSJ Securities and settle these transactions through the SSJ Depository

Services. SSJ Depository Services is part of our value added services for its clients that

create multiple interfaces with the client and provide for a solution that takes care of all

client needs

NRI Account

You can now enjoy the convenience of hassle-free and fast way of trading in the Indian Equity Markets through SSJ NRI Investor Services Our unique integrated service creates one window for all your trading, depository and banking needs. You can buy and sell on your computer using our NRI Trading Account Services, which have been seamlessly integrated with your SSJ Depository Account and with the HDFC NRE/NRO Bank Account.

We provide full access to the following services to help you trade seamlessly:

SSJ NRI Trading Account - Provides access to comprehensive trading tools for

independent NRI investors

SSJ Depository Services - Integrated services for seamless delivery



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

facility to source all regulatory approvals

SSJ Equity Analysis - Premium Research on 540+ companies updated daily

How can SSJ manage its service: -


Word of

mouthcommuni

cation

Personal

needs

Past Experience

Expected

Service

Perceived

Service

ExternalCommu

nicationtocusto

mer

Service Delivery

(including pre

and post

Translation perception intoservice qualityspecifica

GAP 5

GAP 1

GAP 3

GAP 4

MARKETER

CUSTOMER


1. Gap between customer expectation and management perception:

Management does not always correctly perceive what customer want. For intense

in Inidabulls a customer is expecting that he can buy share after deposited require

check but he has to wait for 3 days and same happen with demand draft.

2. Gap between management perception and service quality: Management might

correctly perceive customer’s want but not set a performance standard. Like a

form of an account should passed away from the all stages of processing but it

mostly takes time of 10 days.

3. Gap between service quality specification and service quality: Personnel

might be poorly trained, or incapable or unwilling to meet the standard or they

may be held to conflicting standards, such as taking time to listen to customer and

serving them fast. That is happen in SSJ.

4. Gap between service delivery and external communication:customers’

expectations are affected by statement made by company representative and ads.



5. Gap between perceived service and expected service:This gap occurs when the

customer misperceives the service quality. A client may be perceived wrongly

like in infrastructure of Inidabulls but this will solved in new office of SSJ.

Promotion: -

SSJ is turning to marketing public relations to directly support corporate and product

promotion and image making. Because public is any group that has an actual or potential

interest in or impact on a company’s ability to achieve its objective. SSJ has its team

relationship manager that monitors the attitudes of organization’s publics and distributes

information and communications to built goodwill. They are performing following five

functions:

1. Press Relations: - They present news about the organization in the most positive light.

2. Product Publicity: - All Relationship managers are sponsoring efforts to publicize

product offerings by SSJ i.e. NIB and PIB.

3. Corporate Communication: - They promoting understanding of the organization

through internal and external communications.

4. Counseling: - All RMs advise management about public issues and company positions

and image during good and crises.

SSJ is promoting its product by advertising by following medium:

Electronic media: - By advertise its product via Television

Print media: - By various Pam plates, brochures, etc.

Canopy: - SSJ is now promoting its product by canopies. By Canopies company

can know the potential area of the cities and segment of population to whom it

should target. We also had canopies in Jodhpur city in following areas



Basani Mandi

Mandor Mandi

Mehta Market

Pal Road

Basani Industrial Area

Kazri

Lic Office

Hosing Board Office

Paota

Infrastructure: - SSJ also try to demonstrate its service quality through Physical

Evidenceand presentation. Because if we talk about online security trading then we have

to say that physical evidence will important for the company in SSJ office all client come

everyday and they trade but with the time passing SSJ is growing and number of client

increasing day by day so space of office is not sufficient for both staff members and

clients also. To overcome this problem SSJ will shift in new office with and of July.

Summary: -What a customer expect from the company:

1. Wide range of services under one roof

2. 24 hours support and ease to access

3. Personalized attention

What company offers to its customers:

1. Extensive product range.

2. Enhance customer experience.

3. Personalize service through Relationship Managers.

4. Under stand local market dynamics.

5. Expanding geographical and online presence.

6. Provide a wide array of services such as brokerage, depositary services, mutual

fund and equity distribution, commodities trading and consumer

loans.



7. Offer innovative products such as Power SSJ and SSJ Signature Client Account.

8. Improve customer education through in-house equity research.

9. Improve customer interface and customer experience through technology.

10. Continually invest in upgrading of systems.

11/ Improve speed and quality of services.

12.Enhance data mining to improve risk management processes.

Some new columns introduced by me in that format these are as following:

1. Occupation: By this column we can know to which segment our BDE is

targeting whether he is using his energy in the right direction or he is wasting his

energy.

2. Existing A/C if any: If prospect have already an account in other company then

we can find out status of competitor.

3. View / suggestions: By this column BDE can ask from prospect / client his view

or suggestions regarding service of SSJ it may complains of any present client of

company.

4. Competitor’s Activity: BDE can write the activity of competitor’s like any

company may opening account without charging any fee and because of this our

BDE is unable to get his target

Next day contact: Here BDE can mention follow up which will done by him next

day so that he cant bluff and make fool of any one or any of his senior can do cross

checking of his call.



Marketing strategy concepts:

Price / Selling Effort Strategies: A firm that follows a skimming strategy seeks to

be the first to introduce a product with very good performance, selling it to the

innovator market segment and charging a premium price for it. It makes as much

profit as possible, then moves on when the competition arrives. The price is likely

to fall over time as competition is encountered. Such a skimming strategy

contrasts with a penetrating strategy, which seeks to gain market share by

sacrificing short-term profits, and increasing the price over time as market share is

gained.

Competitors have certain strengths and abilities. To succeed, a firm must leverage

its own unique abilities.

A firm should prepare defensive strategies before potential threats arrive. If the

competition surprises a firm with the introduction of a vastly superior product, the

firm should resist the temptation to proceed with its mediocre product. A firm

never should introduce a product that is obsolete when it hits the market.

The competition's probable response to a firm's actions should be considered

carefully.

Marketing Research for Strategic Decision Making



The two most common uses of marketing research are for diagnostic analysis to

understand the market and the firm's current performance, and opportunity analysis to

define any unexploited opportunities for growth. Marketing research studies include

consumer studies, distribution studies, semantic scaling, multidimensional scaling,

intelligence studies, projections, and conjoint analysis. A few of these are outlined below.

Semantic scaling: a very simple rating of how consumers perceive the physical

attributes of a product, and what the ideal values of those attributes would be.

Semantic scaling is not very accurate since the consumers are polled according to

an ordinal ranking so mathematical averaging is not possible. For example, 8 is

not necessarily twice as much as 4 in an ordinal ranking system. Furthermore,

each person uses the scale differently.

Multidimensional scaling (MDS) addresses the problems associated with semantic

scaling by polling the consumer for pair-wise comparisons between products or

between one product and the ideal. The assumption is that while people cannot

report reliably which attributes drive their choices, they can report perceptions of

similarities between brands. However, MDS analyses do not indicate the relative

importance between attributes.

Conjoint analysis infers the relative importance of attributes by presenting

consumers with a set of features of two hypothetical products and asking them

which product they prefer. This question is repeated over several sets of attribute

values. The results allow one to predict which attributes are the more important,

the combination of attribute values that is the most preferred. From this

information, the expected market share of a given design can be estimated.

Multi-Product Resource Allocation

The most common resource allocation methods are:

Percentage of sales

Executive judgement


http://www.quickmba.com/marketing/research/


All-you-can-afford

Match competitors

Last year based

Another method is called decision calculus. Managers are asked four questions:

What would sales be with:

1. no sales force

2. half the current effort

3. 50% greater effort

4. a saturation level of effort.

From these answers, one can determine the parameters of the S-curve response function

and use linear programming techniques to determine resource allocations.

Decision algorithms that result in extreme solutions, such as allocating most of the sales

force to one product while neglecting another product often do not yield practical

solutions.

For mature products, sales increase very little as a function of advertising expenditures.

For newer products however, there is a very positive correlation.

Portfolio models may be used to allocate resources among major product lines or

business units. The BCG growth-share matrix is one such model.

New Product Diffusion Curve

As a new product diffuses into the market, some types of consumers such as innovators

and early adopters buy the product before other consumers. The product adoption follows

a trajectory that is shaped like a bell curve and is known as the product diffusion curve.


http://www.quickmba.com/marketing/product/diffusion/

http://www.quickmba.com/strategy/matrix/bcg/


The marketing strategy should take this adoption curve into account and address factors

that influence the rate of adoption by the different types of consumers.

Dynamic Product Management Strategies

Two fundamental issues of product management are whether to pioneer or follow, and

how to manage the product over its life cycle.

Order of market entry is very important. In fact, the forecasted market share relative to

the pioneering brand is the pioneering brand's share divided by the square root of the

order of entry. For example, the brand that entered third is forecasted to have 1/√3 times

the market share of the first entrant (Marketing Science, Vol. 14, No. 3, Part 2 of 2,

1995.) This rule was determined empirically.

The pioneering advantage is obtained from both the supply and demand side. From the

supply side, there are raw material advantages, better experience effects to provide a cost

advantage, and channel preemption. On the demand side, there is the advantage of

familiarity, the chance to set a standard, and the choice of perceptual position.

Once a firm gains a pioneering advantage, it can maintain it by improving the product,

creating a standard, advertise that it was the first, and introduce a new product in the

market that may cannibalize the first but deter other firms from entering.

There also are disadvantages to being the pioneer. Being first allows a competitor to

leapfrog the early technology. The incumbent develops inertia in its R&D and may not be



a flexible as newcomers. Developing an industry has costs that the pioneer must bear

alone, and the way the industry develops and its potential size are not deterministic.

There are four classic price/selling effort strategies:

Selling Effort

Price

Low High

Low Necessity products Classic Skim StrategyVulnerable to new entrants

High Classic Penetration Strategy Luxury products

In general, products are clustered in the low-low or high-high categories. If a product is in a mixed category, after introduction it will tend to move to the low-low or high-high one.



Increasing the breadth of the product line as several advantages. A firm can better serve multiple segments, it can occupy more of the distributors' shelf space, it offers customers a more complete selection, and it preempts competition. While a wider range of products will cause a firm to cannibalize some of its own sales, it is better to do so oneself rather than let the competition do so.

The drawbacks of broad product lines are reduced volume for each brand (cannibalization), greater manufacturing complexity, increased inventory, more management resources required, more advertising (or less per brand), clutter and confusion in advertising for both customers and distributors.

\

OPERATING SYSTEMS


BOLT NEAT

NEAT

FO


Daily Research

Market Outlook at 9.00 am

Derivative Analysis Report at 9.00 am

Technical Report at 6.30 pm (For Next Day)

SSJ RESEARCH PRODUCTS



TECHNICAL RESEARCH CALLS



ANALYSIS OF DATA

1. Do you operate a de-mat account?

PARTICULARS PERCENTAGE

YES 73%

No 27%

10%30%50%70%

YES

No

Ever operated a De-mat Account?

YES

No

Interpretation- From the first, question we analyse as what is the % of people

connected to the securities market , the analysis concluded that majority of people

deal in securities through the de-mat account.

Conclusion- It is a good indication ,majority of respondents deal in securities and

do operate a de-mat account, there is a large market share to be explored by the

stock brokers.



2. Which type of financial instrument you would prefer to invest in?


Equity 45%Commodity 20%Derivatives 10%Others 25%

PERCENTAGE

0%5%

10%15%20%25%30%35%40%45%

Equity

Commodity

Derivatives

Others

Interpretation – this question attempts to analyse , as the people operating in the securities market deal in mainly which type of securities, majority said equity, few invests in commodity , derivatives and others.

Conclusion- It is very clear that equity is the most attractive option for all people in the securities market, whereas other instruments account for very less portion of investments.



3. What are the most important services you look in Stock Broking firm?


Resonable Brokerage Charges 30%Quick responsiveness 40%Informatory guidance services 35%Updated documents and reports 20%All of the above 50%

Services That people look in a stock broking firm

Resonable Brokerage Charges

Quick responsiveness

Informatory guidance services

Updated documents and reports

All of the above

Interpretation- majority of the customers, look in for the features in their stock broker whereas there are very few who look in for only some particular options.

Conclusion- a stock broker must concentrate on being successful on the features , he must attempt be a all-rounder inspite of concentrating on a particular objective as the majority seeks a all rounder stock broker.



4. Which of the following financial instruments introduced in the market interests you the most?


Futures 50%

Options 30%

Forward 60%

Swaps 20%

All of the above 25%

PERCENTAGE0%

10%

20%

30%

40%

50%

60% Futures

Options

Forward

Swaps All of the above

Futures

Options

Forward

Swaps

All of the above

Interpretations – this question seeks to analyse the most attractive investing option which the investor think, however the forwards are rated the highest, futures the second highest options and swaps the least

Conclusion- the broker must attempt to provide informatory services to its clients, on what is the actual meaning of the securities and what are benefits and limitations of these investment options.



5. What are your motives behind choosing your stockbroker?

( ) Well- established name

( ) Reasonable charges

( ) Related & known broker

( ) Performance based selection

( ) All of the above


Well- established name 70%

Reasonable charges 40%

Related & known broker 50%

Performance based selection 20%


PERCENTAGE

0%

10%

20%

30%

40%

50%

60%

70%

80%

Well- estab-lished name

Reasonable charges

Related & known broker

Performance based selection

All of the above

Well- established name

Reasonable charges

Related & known broker

Performance based selection

All of the above

Interpretation – it is a very important question as what do the clients look for when choosing their stock broker, this question helps the broker to formulate marketing strategies accordingly to the survey conducted.



Conclusion- majority look for all the features in their stock broker , but the stock broker concerned or not so developed must seize all the qualities step by step and thus aim towards perfection.

6. What is the purpose of dealing in securities?

( ) Knowledge

( ) Easy Money

( ) Activity to Pass Time

( ) Main business

( ) Others, specify ____________


Knowledge 20%

Easy Money 30%

Activity to Pass Time 35%

Main business 15%

Knowledge Easy Money Activity to Pass Time Main business0%

5%

10%

15%

20%

25%

30%

35%

Interpretation- This question is very critical as people, themselves are not very clear about dealing in securities, but the analysis found that people lack a lot of knowledge about securities market, so people do not scrutinize properly before dealing in this market . However people have a different views in dealing with the securities as stated above.



Conclusion- strategies must be adopted to educate customers, people must have a serious attitude for the following area.

7. Do you think dealing in stock can be a sound buisness proposition?

( ) Yes

( ) No


YES 30%

NO 70%

PERCENTAGE

0%

20%

40%

60%

80%

YES

NO

YES

NO

Interpretation- this is a question to analyse the attitude of respondents, the respondents have a different attitude and they keep the following securities market on the side track and they do not want to keep the securities market in the main front thereby it is not being given the due attention.

Conclusion- the attitude of the respondents is not towards a right approach and therefore it needs a revolution and the stock broker, must continue and revolutionise on the same lines.



8. What should be the most suitable channel for selling the financial products?

( ) Direct personal sales

( ) Indirect channels

( ) Direct online


Direct personal sales 20%

Indirect channels 50%

Direct online 30%

Direct personal sales Indirect channels Direct online

0%

10%

20%

30%

40%

50%

What should be the most suitable channel

Series1

Interpretation- this question seeks to attempt, what is the most preferable mode of selling the financial product, however the respondents choose the indirect channel and therefore it is also the most economical and convenient mode.



Conclusion – therefore, the broker must conveniently use the indirect channel to promote the financial products.

9. What is the most convenient sort of communication you prefer between stockbroker and the

the client?

( ) E-mail

( ) Sms

( ) Post


E-MAIL 25%

SMS 50%

POST 25%

PERCENTAGE

0%

10%

20%

30%

40%

50%E-MAIL

SMS

POST E-MAIL

SMS

POST



Interpretation- this question analyse what should be the mode of communication between the broker and the client .

Conclusion- sms came out to be the most preferable sort of communication in comparison to others.

10. Do you come across any advertisements pertaining to securities market, in any of the media?

( ) Newspaper

( ) Magazine

( ) Friends

( ) Professionals

( ) Any other, specify___________


NEWSPAPER 5%

MAGAZINE 12%

FRIENDS 9%

PROFESSIONALS 20%

ANY OTHER 54%



PERCENTAGE0%

10%

20%

30%

40%

50%

60%

NEWSPAPERMAGAZINE FRIENDS

PROFESSIONALS

ANY OTHER

NEWSPAPER

MAGAZINE

FRIENDS

PROFESSIONALS

ANY OTHER

Interpretation- advertisements pertaining to securities market is very rarely found however it is important to note the media.

Conclusion – we can make out which medium must be choosen by the broker according to the analysis.

11. Since when you are connected to the stock broking firm?

( ) 1 year

( ) 2 years

( ) 3 or more

( ) Not Connected


1 YEAR 45%

2 YEAR 20%

3 YEAR OR MORE 20%

NOT CONNECTED 15%



PERCENTAGE0%5%

10%15%20%25%30%35%40%45%

1 YEAR

2 YEAR

3 YEAR OR MORE

NOT CONNECTED

Interpretation – this question attempts to make out what is the tenure of relation between the client and the stock market , as new entrants are not well informed as in comparison with the old clients.

Conclusions – the strategies must be formulated in lieu of the tenure of the clients their duration of dealing in the stock market.

12. What are the preferable investment instruments?

( ) Real estate

( ) Equity

( ) Insurance

( ) Mutual fund

( ) Fixed deposits


REAL ESTATE 33%

EQUITY 25%

INSURANCE 5%

MUTUAL FUND 20%



FIXED DEPOSITS 17%

PERCENTAGE

0%

5%

10%

15%

20%

25%

30%

35%REAL ESTATE

EQUITY

INSURANCE

MUTUAL FUND

FIXED DEPOSITS

Interpretation – this question analyses what is the opinion people have formed about their investing activities , real estate seems the most attractive options to the respondents , equity the second most and others on a lower note.

Conclusion- broker must make attempt to serve people in lieu of educating the respondents about the financial market its inherent advantages in comparison to other investing areas.

13.Which of the financial products you are aware of ?

( ) Equities

( ) Equities & commodities

( ) Equities , commodities & portfolio management

( ) Equities , commodities & portfolio management & mutual funds

( ) All of the above


Equities 30%

Equities & commodities 20%



Equities , commodities & portfolio management

15%

Equities , commodities & portfolio management & mutual funds

15%


Interpretation- are the people aware of the financial instruments prevailing in the market?, however, very few seems to have a wide knowledge on this aspect and a advisory guide is very essential therefore.

Conclusion- very few people are aware of the information prevailing and therefore an initiative is to be taken on the particular lines.

FINDINGS

FINANCE & SECURITIES PVT LTD is one of the leading stock broking

company having large number of clients and a well –established name in the

securities market.

As the firm is not so well established it is focusing more upon the consumer

preferences in order to accommodate its strategies into their needs.



In the present times a lot of educated people have engaged themselves with the

financial market but however they lack proper knowledge .

A broker is required to transmit advisory services, informative services and role

of liaison officer between the clients and the market.

From the entire survey, it was found that majority of the people are aware of

BANK FD’S and PORTFOLIO MANAGEMENT SERVICE.

The reason for less preference of equity and mutual fund is that it does not give

returns to clients once the market falls. Where as in bank fd’s customers get

some fixed amount of returns without any considerations.

Financial market have wide variety of products which benefits the customers by

giving them security as well as hand some returns.

Due to large variety of products, stock market attracts many clients. Having good

marketing strategies, company having good position in the market.

Marketing is the main part of the stock broker because without marketing no

broker can compete in this competitive market.

However, informatory services need to be very strong as people are very less

aware of the latest financial products and overall financial market.

CONCLUSION

The marketing strategies used by the company is used according to the customers.

Like customers are of two types like HNI(heavy nethworth investors) and small

customers.



For HNI customers having large turnover the company uses penetration strategy

and for small customers the company uses skimming strategy.

The company launches new product time to time to compete their

competitors,Necessity products so that customers are more attract to our

company,new RM’S(relationship managers)

So that through them the company can attract the new customers.

SUGGESTIONS

SSJ FINANCE & SECURITIES PVT LTD Needs to launch or introduce other

brokerage plans with advance and special features as compared to other players so

that they can get more market share and can also compete with other market

players.



SSJ should improve either on marketing part or other benefits products so that

people are more attracted towards these plan.

The main suggestion to the company is to educate the investors and transmit the

update knowledge about the securities market.

The mode of communication is to be improved the latest , economical medium as

messaging service or messenger media must be used

However, international clients must be furnished with all the necessary latest

information such as , exchange rates , euro swap , swap ratio etc.

Sessions must be give to the marketing department or the marketing executives ,

concentrating upon stimulating sales of the financial product.

Lastly, the company is performing well but however there must be changes in

accordance with the changing scenarios and trends.

SSJ has to make effort to reach the higher stages so that the probability of the

company as well as the market share of the company can be increased. Lastly,the

company should introduce new and attractive policies as the competetion is high

in the market.

GLOSSARY

(1) CDSL- central depository securities limited

(2) DERIVATIVES-these are financial instruments whose value depend on the value of



other more basic underlying like equity,bonds,commodity,etc.

(3) DEMAT- de-mat means dematerialization.

(4) E-BROKING- means online trading platform.

(5) FII-foreign institutional investors.

(6) FUTURES- future contract is agreement to buy or sell an asset at certain future time

for a certain price.

(7) IPO-initial public offer.its function is to raise money for public,expansion of existing

plant and adding new plants.

(8) KYC- this means know your customer.A customer can be known by checking his

documents ,providing him a unique code and contracting with him in lot.

(9) MCX-multi commodity exchange.

(10) MINI-this is a gateway for small investors into derivatives.



(11) NCDEX-national commodity and derivatives exchange ltd.

(12) OPEN INTEREST-this is the total number of outstanding contracts that are held by

market participants at the end of the day.

(13) OPTIONS-these are deffered delivery contracts that give the buyers the right but

not the obligation,to by or sell at the set price or before a specified date.

(14) PM-portfolio management.The portfolio management team not only draws support

from angels inhouse research team for new investment ideas but also has its own

stock picking by adopting bottom up research.

(15) PULL BACK- share prices come back to test the trendlines after a breakout or

breakdown.

(16) RESISTANCE- is the level on the pricechart from which the stock price starts

moving down.

(17) RETRENCHMENT –is the correction that occurs in the price of a share.

(18) SUPPORT – is the level on the price chart from which the stock price start moving



up.

(19) TRADING – is a form of account which is helpful in trading of securities.In

commodity market only trading account is compulsory.

(20) TREND – is the direction in which market moves.

BIBLOGRAPHY

BOOKS/PREFERENCES

1)COMPETITORS OF SSJ FINANCE

(SHAREKHAN &KOTAK MAHINDRA)

FROM THE WEBSITE:

WWW.SHAREKHAN.COM


http://www.sharekhan.com/


WWW.KOTAK.COM

2)QUESTIONNAIRE

TAKEN FROM BOOK MARKETING RESEARCH

BY G.C BERI

OTHER HELPFUL WEBSITES WERE:

WWW.SSJFINANCE.COM

WWW.BSEINDIA.COM

WWW.NSEINDIA.COM

WWW.INDIAINFOLINE.COM

WWW.CAPITALMARKET.COM

WWW.GOOGLE.COM

ANNEXURE

QUESTIONNAIRE

A questionnaire is research instrument consisting of series of questions for the

purpose of gathering information from respondents.They are designed for statistical

analysis of the respondents.questionnaire has advantage over some other type of

surveys and often have standardized answers that make it simple to compile data.


http://www.google.com/

http://www.capitalmarket.com/

http://www.indiainfoline.com/

http://www.nseindia.com/

http://www.bseindia.com/

http://WWW.SSJFINANCE.COM/

http://www.kotak.com/


Questionnaires are frequently used in quantitative marketing research and social research.Good

questionnaire construction is difficult to the success of survey.questionnaires are an inexpensive

way to gather data from a potentially large number of respondents.A well defined questionnaire

that is used effectively can gather information on both the over all performance of the test system

as well as information on specific components of the system.

It is important to remember that a questionnaire is viewed as a multi stage process begning with

defination of the aspects to be examined and ending with interpretation of the results.

STEPS FOR DESIGNING A QUESTIONNAIRE

1. Defining the object of the survey

2. Determining the group of questions

3. Writing the questionnaire

4. Administering the questionnaire

5. Interpretations of the results.

A questionnaire is the powerful evaluation tool an should not be taken lightly.Questionnaires

are like any scientific experiment.One does not collect data and the see if they found

something interesting.

There are many guidelines that must be met before your questionnaire can be considered a sound

reach tool.Mindful review and testing is necessary to weed out minor mistakes that can cause

great changes in meaning and interpretation.When yhese guidelines are followed the

questionnaire becomes a powerful and economic evaluation.



SAMPLE QUESTIONNAIRE

Hello sir/madam,

I Pratiksha baid student of M.B.A. with specialization in MARKETING, pursuing from seventh-

day Adventist college,NEHU,I am conducting study ON MARKETING STRATEGIES OF A

STOCK BROKER as a part of my course curriculum.



I would request you to spent a few minutes of your valuable time and help me in the

questionnaire.

Thank you

ANALYSIS OF DATA

1) NAME:--------------------------------------

2. ADDRESS:-----------------------------------------------

3. GENDER: ( )MALE ( )FEMALE

4. AGE GROUP:

( )18-24 ( )25-34 ( )35-44 ( )45+

5. MARITAL STATUS:

( )SINGLE ( )MARRIED

ANALYSIS OF DATA

1. Do you operate a de-mat account?

() YES () NO

2. Which type of financial instrument you like to prefer to invest in ?

() equity

() commodity

() derivatives

() others, specify______



3. In a stock broker firm,what are the most important services you look for?

() reasonable brokerage charges

() quick responsiveness

() informatory guidance services

() updated documents and reports

() all of the above

4. Are you aware and have a brief idea upon the latest financial instruments introduced in

the market?

() futures () options () forward () swaps () all of the above

5.What are your motives behind choosing your stockbroker?

() well- established name

() reasonable charges

() related & known broker

() performance based selection

() all of the above

6.What is the purpose of dealing in securities?

() knowledge

()experience

()past-time activity

()main business

() others, specify ____________

7.Do you think dealing in stock can be a sound buisness proposition?

()yes

()no



8. What should be the most suitable channel for selling the financial products?

() direct personal sales

() indirect channels

() direct online

9. What is the most convenient sort of communication you prefer between stockbroker

and the client?

() e-mail

() sms

() post

10. Do you come across any advertisements pertaining to securities market, in any of the

media?

() newspaper

() magazine

() friends

() professionals

() any other, specify___________

11. Since, when you are connected to the stock broking firm?

() 1 year

() 2 years

() 3 years

() more than 3

12. What are the preferable investment instruments?

() real estate?

() equity

() insurance



() mutual fund

() fixed deposits

13.Which of the financial products you are aware of ?

() equities

() equities & commodities

() equities , commodities & portfolio management

() equities , commodities & portfolio management

mutual fund

() all of the above


strategies of a stock broker

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