SUMMER INTERNSHIP PROJECT REPORT

On

“ANALYSIS OF CONSUMER BEHAVIOR TOWARDS SHARE TRADING IN INDIABULLS SECURITIES LTD”

MANAGEMENT THESIS REPORT

FACULTY GUIDE: Prof. Nidhi Kumari

COMPANY GUIDE: Mr. Sourav Agarwal

Submitted By:Pritpal Singh

7NBRN040

TABLE OF CONTENTS

ACKNOWLEDGEMENT

PREFACE

EXECUTIVE SUMMARY

RESEARCH OBJECTIVE

INTRODUCTION TO INDIABULLS.

HISTORY AND OTHER CORPORATE MATTERS

FUNCTIONAL AREAS OF INDIABULLS.

INTRODUCTION TO THE CONCEPT OF SHARE TRADING

FINDINGS AND ANALYSIS

BIBLIOGRAPHY

ACKNOWLEDGEMENTS

I would like to express my sincere thanks to Indiabulls Securities Ltd., Delhi

for giving me the opportunity to carry out the Summer Internship Program in their

organization. The whole period spent with the organization has been of immense

learning experience about the Indian Stock Market.

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

sincerely thankful to all those people who help me lot, in preparing and completing

this project.

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

to carry out the project “Analysis of Consumer Behavior Towards Share

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

behavior about equities.

I sincerely thank Mr. Sourav Agarwal (AVP) for providing me this valuable

learning opportunity. Finally I would like to thank Mr. Piyush Jain (Relationship

Manager) my project supervisor without his help and guidance the completion of

this project would have become difficult task.

PREFACE

No professional curriculum is considered complete without work experience.

It is well evident that work experience is an indispensable part of every

professional course. In the same manner practical work in any organization is must

for each an every individual, who is undergoing management course. Without the

practical exposure one cannot consider himself as a qualified capable manager.

Entering in the organization is like stepping into altogether a new world. At

first, everything seems strange and unheard but as the time passes one can

understands the concept and working of the organization and thereby develop

professional relationship.

Initially it is felt that as if classroom study was irrelevant and it is useless in

any concern working. But gradually it is realize that all fundamental basic concepts

studied are linked in one or other ways to the organization. But how and what can

be done with fundamentals depends upon the intellectual and applicability of an

individual.

EXECUTIVE SUMMARY

Investing in equities in a market like India is speculative and involves risk

that may be greater than other types of investment strategies. Before investing

an Investor should be careful enough about him investment decision to avoid

erosion of wealth. As seen in the recent times the volatility of market is more

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

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

for a prudent investment, keeping long-term horizon in mind.

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

importance to general public dealing in an equity trading on day-to day and

delivery base trading. The working methodology has been discussed i.e. the data

collection methods, sampling methods and the survey questionnaire methods. The

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

points”

The report given a view about the investors perception that what thy think

while making investments in shares.

A sample of 50 people was selected randomly and survey was done as per

the parameters of the questionnaire. The results of every parameter have been

included in this report and shown graphically (Pie Charts, bar graphs etc.) A

complete structure of the research design has been included.

Apart from above discussed points the brief history of Indiabulls Securities

Ltd, its business diversification and a brief introduction about the concept of share

trading.

RESEARCH OBJECTIVES

To study investor’s behavior towards different attributes such as risk, return liquidity etc. of

investment in Equities.

To study the issues and challenges that investors face while making investment in share

market.

To study the preferences and perceptions of investors regarding various financial products

from the stable of Indiabulls Securities Ltd. so that the firm can benefit from the findings of

the report in launching any new investment product in future.

DATA COLLECTION

The data collected was a primary in nature no secondary data was used. Primary data was

collected using structured questionnaire. The questionnaire has been designed for the target group

to get the best amount of data possible keeping in view the importance and authenticity of the

information and convenience of the respondent. The selection of investor was predetermined in

nature Personal contacts were established to conduct a face-to-face interview. Interview was

conducted under strict supervision to maintain the standards of the data collected.

Research Design

Research design is a specification of methods and procedures for acquiring the information

we need to solve the problems. Research design was adopted for the purpose of collection and

analysis of data in a manner aimed at getting relevant information. It was conceptual structure

within which research was conducted, collected, measured and analyzed.

Research Idea

To know the market scene of trading and Investment in equities through Indiabulls securities

Ltd.

Research Question

What is the market trend regarding investment? What difficulties and challenges investors

are facing while making investments?

Research Statement

“To get an insight into the mind of investors regarding trading and investment in Equities”

“To get an insight into the mindset of investors regarding the importance assigned to

different attributes such as risk, return, liquidity etc. of various investment channels such as

equities. In the report this tries to understand the investor’s behavior while trading.”

“To study the preferences and perceptions of investors regarding various financial products

from the stable of Indiabulls Securities Ltd. so that the firm can benefit from the findings of

the report in launching any new investment product in future.”

RESEARCH METHODOLOGY

The methodology section is the blue print for researcher activity and specifies bow the

investigator intents to study the people or describe social settings. In other words the methodology

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

The project study has been conducted by collecting primary data only using structured

questionnaire. No secondary data is used.

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

about this topic thoroughly.

SURVEY QUESTIONNAIRE

NAME:

ADDRESS:

PHONE NUMBER:

1. Where do you prefer to invest your money?

a) Bank Deposits

b) Shares

c) Mutual Funds

d) Real estate

e) Insurance Plans

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

a) High Return b) Moderate Return

c) Low Risk d) Moderate Risk

3. Do you prefer to invest in shares?

a) Yes b) No

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

a) Kotak Securities b) Indiabulls Securities

c) ICICI d) Fortis Securities

e) Others, please specify

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

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

7. What attracts you to invest in Shares?

a) Brokerage b) Expertise Knowledge

c) Exposures/loan d) Brand

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

a) Daily b) Monthly

c) Yearly d) other, please specify

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

a) Yes b) No

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

a) Yes b) No

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

a) Information b) Speed

c) Quality d) Other

12. Any recommendation / Suggestion

Limitations of the study

To study share market is a very vast topic and the search is just limited to a small portion.

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

information from them.

Sometime it was difficult to make the respondents understand the purpose of the survey.

Busy schedule of the respondents was also a major hindrance to establish a contact with

them.

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

INTRODUCTION TO INDIABULLS

Indiabulls is India's leading retail financial services company with over 414 locations in

more than 124cities. While our size and strong balance sheet allow us to provide you with varied

products and services at very attractive prices, our over 5400 Client Relationship Managers are

dedicated to serving your unique needs.

Indiabulls is lead by a highly regarded management team that has invested crores of rupees

into a world class Infrastructure that provides our clients with real-time service & 24/7 access to all

information and products. Our flagship Indiabulls Professional Network offers real-time prices,

detailed data and news, intelligent analytics, and electronic trading capabilities, right at your finger-

tips. This powerful technology is complemented by our knowledgeable and customer focused

Relationship Managers. Indiabulls offers a full range of financial services and products ranging

from Equities to Insurance to enhance your wealth and hence, achieve your financial goals.

Indiabulls Client Relationship Managers are available to you to help with your financial planning and

investment needs. To provide the highest possible quality of service, Indiabulls provides full access

to all our products and services through multi-channels.

Sameer Gehlaut, Rajiv Rattan and Saurabh Mittal, friends got together to start the

company. For some years they worked in the oil field services industry. The idea to start their own

outfit on a technology platform was born in 1999 when Gagan Banga joined the three IIT-Delhi

engineers who promoted the company. These first generation entrepreneurs knew very well that

nothing small works. They didn’t want to build a small business which would get overnight success

and shut down; rather they wanted to build a sustainable profitable business. This idea was to

target the huge untapped retail segment of the market. The first task of course was to work out a

sound business model, which was sustainable and profitable. They soon realized the implicit

strength of their model. India was toying around with the idea of brokerage getting done through

the internet and clients directly managing their accounts. Around the middle of 1999, the core

promoters had got together and acquired a shut down brokerage firm from its promoters at that

time. The whole idea was to get a brokerage license from the stock exchange and a membership of

the stock exchange.

In 1999-2000, there was dotcom boom, there were a lot of dotcoms coming into being, lot of

venture capitalists were funding the dotcoms business but none of the dotcom had any revenue

model so the scope of a dotcom business was immense. Indiabulls came into existence to take

advantage of this. The three promoters got together and took over a defunct brokerage company

Orbis Securities- the whole idea was to get a brokerage license and a membership of the

stock exchange. This brokerage firm was restarted and it started making miniscule amount of

revenue for the company – it basically catered to the HNIs - High Net worth Individuals. Immediately

after this the venture capitalists were contacted. In this there were several models, which were

discussed including involving a strategic investor. Initially the company was promoted as a dotcom

company. The promoters chose the famous Charles Schwab model, which perfectly addressed

their need to have the business on a technology platform. The idea was that since it worked in

other parts of the world, it would work here also. The company thus had clear-cut revenue model.

It was very clear in the minds of the promoters that revenue was very important. Profitability is the

key to the entire thing. The emphasis on profitability was there from day one. Indiabulls has been

profitable for every financial year beginning 2000-01 the only financial year it has not been

profitable has been 1999-2000. The company focused on the retail segment and used Internet to

exploit the massive scope in the retail segment. The company also enjoyed the first mover

advantage, as at that time there was no company catering to the needs of retail segment through

Internet Sameer Gehlaut, took over as chairman and CEO, and now looks after sales, marketing

and external relationships, while Rajiv Rattan, in the role of CFO and president, manages

operations, finance and back office.

HISTORY AND OTHER CORPORATE MATTERS OVERVIEW

Indiabulls Financial Services Limited was incorporated on January 10, 2000 as M/s Orbits

InfoTech Private Limited at New Delhi under the Companies Act, 1956 with Registration No. 55 –

103183. The name of the Company was changed to M/s. Indiabulls Financial Services Private

Limited on March 16, 2001 due to change in the main objects of the Company from Infotech

business to Investment & Financial Services business. It became a Public Limited Company on

February 27, 2004 and the name of Company was changed to M/s. Indiabulls Financial Services

Limited. Company was promoted by three engineers from IIT Delhi, and has attracted more

than Rs.700 million as investments from venture capital, private equity and institutional investors

such as LNM India Internet Ventures Ltd., Transatlantic Corporation Ltd., Farallon Capital Partners,

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

significant relationships with large commercial banks such as Citibank, HDFC Bank, Union Bank,

ICICI Bank, ABN Ambro Bank, Standard Chartered Bank, Lord Krishna Bank and IL&FS. Company and

there subsidiaries have facilities from the above mentioned banks and financial institutions

aggregating to Rs. 1760 million. Companies headquarters are co-located in Mumbai and Delhi,

allowing it to access the two most important regions for Indian financial markets, the Western

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

National Capital Territory of Delhi, nearby cities, parts of Haryana, Uttar Pradesh and Punjab; and

access the highly skilled and educated workforce in these cities. The Marketing and Sales efforts

are headquartered out of Mumbai; with a regional headquarter in Delhi; and its back office, risk

management, internal finances etc. are headquartered out of Delhi, allowing our Company to scale

these processes efficiently for the nationwide network.

Main Objects of The Company

The main objects to be pursued by the Company on its incorporation are:

1. To hold investments in various step-down subsidiaries for investing, acquiring, holding,

purchasing or procuring equity shares, debentures, bonds, mortgages, obligations, securities

of any kind issued or guaranteed by our Company.

2. To provide financial consultancy services; to provide investment advisory services on the

internet or otherwise; provide financial consultancy in the area of personal and corporate

finance; publish books and CD ROMs and any other information related to the above.

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

instruments and hybrid financial instruments and to perform all related, incidental, ancillary

and allied services.

4. To conduct depository participant services; to conduct de-materialization and re-

materialization of shares; set up depository participant centers at various regions in India and

to perform all related, incidental, ancillary and allied services.

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

institutions and corporate bodies; grant advances and loans; conduct advisory services related

to banking activities, project financing, funding of mergers and acquisition activities; fund

management and activities related to money market operations.

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

custodial services; asset management services; leasing and hire purchase; mutual fund

services and to act as brokers of real estate and financial instruments.

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

consultancy in the area of lease and hire purchase financing.

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

activity instrument in debt and/or equity instruments.

Shareholders Agreement

Shareholders Agreement was entered into by and among our Company (formerly Orbis

Infotech Private Limited), Infinity Technology Trustee Private Limited as the trustee of Infinity

Venture India Fund, LNM India Internet Ventures Limited, Transatlantic Corporation Limited

(together the “VC Investors”) and the Promoters dated November 2, 2000. The VC Investors

invested an aggregate amount of Rs. 206,000,000 in our Company for which they were issued

55,425 equity shares at an average price of Rs. 3,716.73 per equity share. Pursuant to a letter

agreement (the “Letter Agreement”) dated May 27, 2004 between the parties to the Shareholders

Agreement, each of the VC Investors have agreed not to enforce rights that have accrued to them

before the said Letter Agreements and have agreed that the Shareholders Agreement, together

with all the rights and obligation on the parties will stand terminated immediately upon the listing

of the shares of our Company and consequent to the listing, the rights of the Shareholders

Agreement, including the rights that have arisen prior to such termination shall be terminated. A

copy of the Shareholders Agreement and a copy of the Letter Agreement terminating the

Shareholders Agreement are available for inspection as material documents at the corporate offices

of our Company.

Key Competitive Strengths

Diverse Branch Network

Bouquet of financial products and services

Advanced Technology team that delivers market leading product innovation

Strong Sales and Marketing Teams with continuous reinvestment and training

Strong cross Selling Opportunities

Strong Team of Experienced Promoters

Leading Product innovation and marketing strategies

Well capitalized player, with strong banking relationships and credit ratings

Ability to combine People & Technology in unique ways

Strong market presence and increased market share leads to virtuous cycle of growth and

profitability

Key Business Strategies

Increase the number of Client Relationships

Offer Diversified Financial Products & Services – Capture Greater Share of Wallet

Multiple Channels – Enhance Customer Experience and Opportunities to interact with us

Relationship Manager driven sales model, provide high quality service and exploit cross-sell

opportunities

Low cost and highly scalable business

Brokerage Offering

Online Automated Channel

Third Party Financial Products Offering.

FUNCTIONAL AREAS OF INDIABULLS

The product range offered by Indiabulls includes

1. Equity Analysis

2. Depositories

3. Personal Loans

4. Equity And Derivative

5. Indiabulls Resource Ltd.

1. INDIABULLS Equity Analysis.

Building and maintaining your ideal portfolio demands objective, dependable information.

Indiabulls 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, we don't have the same

conflicts of interest as traditional brokerage firms. This objectivity is an important difference in our

ratings.

What is Indiabulls Equity Analysis?

An Equity Rating approach is objective and easy to understand

Indiabulls Equity Analysis provides clients with an objective stock rating system for more

than 500+ stocks

An unbiased approach to help in deciding which shares to buy and sell.

Includes third party opinions to facilitate more informed investing decisions.

Features of Indiabulls Equity Analysis

This feature of Equity Analysis provides its clients in short and precise the company’s

background, stock price, asset class, ratings along with the 3 rd party opinions. Following are the

parameters:

Overview:

Contains precise information about the industry (cement, pharmaceutical, IT, etc), current stock

price, asset class (large cap; mid cap; small cap) and 52 week high-low.

i. Company background /details:

Services and products offered

Client profile

Core competency

Achievements and its relative position (market share) in the industry.

ii. Equity Ratings:

Ratings are based on a set of parameters, which are as follows:

Fundamentals - Assessed on parameters like net profit margin and ROE (Return on Equity).

Valuation - Assesses the attractiveness of a particular stock. Higher the current value of the

company, lower is its future attractiveness.

Risk - Assessed on parameters like price volatility, liquidity of the stock, debt/equity ratio, etc.

Momentum - Assesses the potential of the stock to keep performing at a stronger than market

level in the future. The more the number of buy/buy-hold recommendation the better the

momentum rating for the company.

iii. Current consensus opinion:

Perspective from the viewpoint of the Analyst which are used to generate ratings for each company

(scrip wise). This includes the following:

Third party opinions

Only for companies researched by some analysts

Parameters include Buy, Buy/Hold, Hold, Weak/Hold, Sell, No opinion

iv. Fundamental information :

Under this parameter the company’s share is compared with the industry and market which is

based on the following parameters:

Revenue: Income generated from sales of the product.

Market capital : Number of shares * market price

Price/sales: Stock's current price / revenue per share

Profit margin(%): This parameter is an indicator of profitability which is calculated as: Net

earnings after taxes/revenues

ROE (%) Return on Equity : This is useful in comparing the profitability of a company to other

firms in the same industry and this calculated as: Net income/shareholder’s equity

Long Term Debt/Equity: A measure of financial leverage indicating the proportion of equity

and debt used by the company to finance its assets.

v. Peer analysis:

The Scrip is compared with it peers with respect to various parameters like revenue, growth

P/E and the analyst Consensus.

This includes the following:

Revenue: Income generated from sales compared to its peers.

Growth %: Growth measured in terms of percentage which is compared to its peers in the

same industry.

P/E: PE Ratio is calculated as the current market price of a share divided by the earnings per

share (EPS). Higher P/E multiple would indicate the investor’s willingness to pay more for the

stock relative to its earnings which is reflected in a high growth %.

Analyst consensus: The Analyst views are mentioned under this category.

vi. Growth expectations and valuation measures

This parameter is based on the following valuations:

Annual EPS Trend

Current P/E multiples

Valuing Potential Growth

Annual EPS Trend:

EPS: The EPS is arrived by dividing the net profit by the number of shares in the company. The

ratio shows the kind of price that investors are willing to pay for each rupee of earnings.

Indiabulls Equity Analysis provides the clients with a measure of the companies future

profitability with the help of forecasted EPS, which is derived from historical data. It shows the

trend of the annual EPS generated.

Current P/E multiples:P/E: It measures the stock ‘price relative’ to its earnings. PE Ratio is calculated as the current

market price of a share divided by the earnings per share (EPS). It includes trailing data, which

indicates last 4 quarters along with the estimated financials. Here the higher P/E multiple would

indicate the investor’s willingness to pay more for the stock relative to its earnings which is

reflected in a high growth %.

It is useful to compare the P/E ratios of companies in the same industry, market, or against the

company's own historical P/E. This explains the use of this ratio in case of peer analysis and the

comparative analysis with respect to the industry and the market as a whole.

Valuing Potential Growth:

PEG: The PEG (price/earnings to growth) ratio is a tool that can help investors find undervalued

and overvalued stocks.

If PEG =1 - then market is pricing the stock to fully reflect the stock's EPS

growth.

If PEG > 1 - then the stock is possibly overvalued or that the market expects

future EPS growth to be greater than what is currently in the market.

If the PEG < 1 - it is a sign of a possibly undervalued stock or that the market does not expect the company to achieve the earnings growth that is reflected in the market.

2) Depositories

Indiabulls is a depository participant with the National Securities Depository Limited and

Central Depository Services (India) Limited for trading and settlement of dematerialized shares.

Indiabulls performs clearing services for all securities transactions through its accounts. We offer

depository services to create a seamless transaction platform – execute trades through Indiabulls

Securities and settle these transactions through the Indiabulls Depository Services. Indiabulls

Depository Services is part of our value added services for our clients that create multiple

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

SCHEDULE OF CHARGES NSDL CDSL

3. Personal Loans.

Offers the shortest route to a loan with minimum paperwork and procedures. With Easymoney,

you can avail of easy loans for a minimum of Rs.10, 000 to a maximum amount of Rs.1,00,000.

Features of Easymoney are:

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

Loans available from a minimum of Rs.10,000 up to a maximum of Rs.100,000. Easy monthly repayment through equated monthly installments (EMI). Mediclaim Insurance bundled with every loan you avail. Easy documentation and quick disbursal. You take today and you can pay it tomorrow with no penalties

Documents required:

Residence Proof Identity Proof Income Proof

4. EQUITY & DERIVATIVE

Equity Business caters:

Needs of independent investors. Active traders Non-Resident Indian (NRI) investors.

Indiabulls offers:

Broker assisted trade execution Automated online investing Access to all IPO's.

Indiabulls offers the purchase and sale of securities, which includes Equity, Derivatives and

Commodities Instruments listed on National Stock Exchange of India Ltd (NSEIL), The Stock

Exchange, Mumbai (BSE) and NCDEX.

Types of Accounts

Indiabulls Signature Account - Comprehensive services including research and investing

guidance for independent investors.

Power Indiabulls - Indiabulls is dedicated to empower Active Traders through personal

service and advanced trading technology.

Non-Resident Indian (NRI) Investor Services - With an extensive range of investment

products, you will discover an unwavering commitment to helping you invest in India.

All of this comes to you backed by your Relationship Manager available to you 24x7.

Indiabulls is India's leading retail financial services company with 414 locations spread

across 124 cities.

Over 4400 Client Relationship Managers are dedicated to serving your unique needs.

Is complemented by our knowledgeable and customer focussed Relationship Managers.

Provides our clients with real-time service & 24/7 access to all information and products.

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

Insurance to enhance your wealth and hence, achieve your financial goals.

Post Registration Services:

Deliver and receive cheques and securities

Obtain market information

Place orders

Get access to IPOs via the Book Building route as well as to all the fixed price issues.

Documents required for trading account and D-Mat A/C

2-passport size photograph.

Photocopy of Income Tax Permanent Account Number (PAN) Card - If you do not have PAN,

then you would be required to give a declaration to that effect and fill form 60.

Identity Proof - Photocopy of any of the following:

Passport

PAN Card

Voter ID

Driving License

Ration Card

Address Proof - Photocopy of any one of Driving License / Passport/Ration Card/Voter

Card/ Bank Statement.

Features of Power Indiabulls.

(It is a unique offering by the company which helps an investor to trade online).

An investor can avail this feature by paying a fee of Rs. 750; with this he can track all the listed

scripts at NSE.

The features include:

Live Streaming Quotes

Fast Order Entry

Tic by Tic Live Charts

Technical Analysis

Live News and Alerts

Extensive Reports for Real-time Accounting

5. Indiabulls Resources Ltd

Indiabulls Resources Ltd, a 100 per cent subsidiary of Indiabulls Financial Services Ltd.,

has been established with the objective of evolving as an independent oil company over time. The

immediate short-term goal is to partner with oil companies who are willing to come to India and bid

in the current NELP-6 round.

Through its group companies, Indiabulls is also engaged in real estate development. The

company is in the process of developing modern commercial complexes in the heart of Mumbai.

Indiabulls Estates Pvt Ltd. the real estate arm of Indiabulls Financial Services will set up an

integrated township spread across 100 acres in Sonepat, 15 km from Delhi.

INTRODUCTION AND CONCEPT OF SHARE TRADING

Trading in shares is old phenomena its regulation had been started when securities contract

act had been formed in 1956. Transfer of resources from those with idle resources to others who

have a productive need for them is most efficiently achieved through the securities market. It

provides a channel for reallocation of savings to investments.

SECURITIES AND EXCHANGE BOARD OF INDIA (SEBI) is a regulatory governing body of

security market. The SEBI Act 1992 was enacted to empower SEBI with statutory powers for:

Protecting the interests of investors in securities.

Promoting the development of the securities market

Regulating the securities market

Its regulatory jurisdiction extends over corporate in the issuance of capital and transfer of

securities. It has powers to register and regulate all the market all market intermediaries and also

to penalize them in case of violations of the provisions of the ACT, rules and regulations made there

under. SEBI has a full autonomy and authority to regulate and develop an orderly securities market.

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

Market.

Financial market can be divided into following four sub-markets.

Primary Market

It provides opportunity to issuers of securities government as well as corporate to raise

resources to meet their requirements of investments. In this market companies issue fresh security

sin exchange of funds through public issues or private placements. The market design for primary

market is provided in the provision of Companies Act, 1956 which deals with issues, listing and

allotment of securities. The investors have to apply the shares by filling the application form issue

by the company along with the application money. According to Disclosure and Investor Protection

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

issues, listing requirements, disclosure norms lock-in-period for promoters contribution, contents of

offer documents pre and post issue obligations etc.

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

pricing which is now days common is issuing the securities through online system of the stock

exchange has to comply with the section 55 to 68a of the companies Act, 1956 and SEBI guidelines

2000. The company is required to enter in to an agreement with the stock exchanges which have

the requisite system for online offer of securities. The advantages for this new system are:-

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

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

(c) It reduces the time taken for issue process

Secondary Market

Secondary market is the place for sale and purchase of existing securities. It enables an

investor to adjust his holdings of securities in response to changes in his assessment about risk and

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

of the stock exchanges which provide platform for trading of securities and a host of intermediaries

who assist in trading of securities and clearing and settlement of trades. The securities are traded,

cleared and settled as per prescribed regulatory framework under the supervision of the exchanges

and oversight of SEBI.

Trading Mechanism

Earlier trading on stock exchanges in India used to take place through open outcry without

use of information technology for immediate matching or recording of trades. This was time

consuming and inefficient. This imposed limits on trading volumes and efficiency. In order to

provide efficiency, liquidity and transparency National Stock Exchange introduced a nation wide on

line fully automated screen based trading system where a member can punch in to the computer

quantities of securities and the prices at which he likes to transact and the transaction is executed

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

electronically matches orders on a price/time priority and hence cuts down on time, cost and risk of

error, as well as on fraud resulting in improved operational efficiency. It enables market

participants, irrespective of their geographical locations to trade with one another and it provides

equal access to everybody.

NSE has main computer which is connected through Very Small Aperture Terminal (VSAT)

installed at its office. The main computer runs on a default tolerant STRATUS mainframe computer

at the exchange. Brokers have terminals installed at their premises which are connected through

VSATs. An investor informs a broker to place an order on his behalf.

What is Equity?Financing a company through the sale of stock in a company is known as equity financing.

Alternatively, debt financing (for example issuing Bonds) can be done to avoid giving up shares of

ownership of the company. Unofficial financing known as trade financing usually provides the major

part of a company's working capital (day-to-day operational needs). Trade financing is provided by

vendors and suppliers who sell their products to the company at short-term, unsecured credit

terms, usually 30 days. Equity and debt financing are usually used for longer-term investment

projects such as investments in a new factory or a new foreign market. Customer provided

financing exists when a customer pays for services before they are delivered, e.g. subscriptions and

insurance.

EQUITY MARKET

Public equity markets are those where corporates raise resources through IPOs by getting

listed in the stock exchanges. Public equity markets are subjected to a wide range of governance,

disclosure, transparency and compliance norms set by the securities exchanges

commissions/government agencies and also the self-regulatory functions set by the exchanges

themselves. Institutional and retail investors mostly use this channel.

The distinct advantages of the public equity capital are:

Lower cost of capital for the firm

Provide liquidity for current stockholders

Shift monitoring costs for private lenders

Firm can learn from information contained in the stock price movements.

However, public equity capital has some costs too. These include

Disclosure of proprietary information

Agency costs of outside equity

Costs of reporting/filing with regulators/exchanges

Costs of corporate control

Under-pricing

A few features generally observed in the respect of the IPO markets include:

Typically, IPO prices are below the level that they reach on the market a few days or

weeks later, when more public information is available (under pricing). However the

extent of under-pricing will narrow with several companies coming up for listing.

Each IPO generates beneficial information externalities for other companies that are

about to go public.

Privatized companies tend to list in public equity markets that offering better legal

protection of shareholders.

The decisions to go public are affected by firms’ ownership structure. When company

has only one owner or when banks holds majority shares, companies are less likely to

prefer public equity.

PUBLIC EQUITY CAPITAL

Governments:

The scope of government in further development of public equity markets could consist of:

Extend the realm of regulation to other markets as well

Extend fiscal support to corporate accessing public equity markets

Evolve policy framework that will streamline compliance requirements and thereby

costs of regulation

Refine regulation so as to make it cohesive, comprehensive and more integrated.

Choice of public equity markets in case of privatization and divestment process of

government stake.

DERIVATIVE MARKET

A derivative security can be defined as a security whose value depends on the values of

other underlying variables. Very often, the variables underlying the derivative securities are the

prices of traded securities. In fact, a derivative transaction helps cover risk, which would arise on

the trading of securities on which the derivative is based and a small investor can benefit

immensely.

Let us take an example of a simple derivative contract:

Ram buys a futures contract.

He will make a profit of Rs 1000 if the price of Infosys rises by Rs 1000.

If the price is unchanged Ram will receive nothing.

If the stock price of Infosys falls by Rs 800 he will lose Rs 800.

As we can see, the above contract depends upon the price of the Infosys scrip, which is the

underlying security. Similarly, futures trading have already started in Sensex futures and Nifty

futures. The underlying security in this case is the BSE Sensex and NSE Nifty.

Derivatives and futures are basically of 3 types:

Forwards and Futures

Options

Swaps

Forward contract

A forward contract is the simplest mode of a derivative transaction. It is an agreement to

buy or sell an asset (of a specified quantity) at a certain future time for a certain price. No cash is

exchanged when the contract is entered into.

Illustration 1:

Shyam wants to buy a TV, which costs Rs 10,000 but he has no cash to buy it outright. He

can only buy it 3 months hence. He, however, fears that prices of televisions will rise 3 months from

now. So in order to protect himself from the rise in prices Shyam enters into a contract with the TV

dealer that 3 months from now he will buy the TV for Rs 10,000. What Shyam is doing is that he is

locking the current price of a TV for a forward contract. The forward contract is settled at maturity.

The dealer will deliver the asset to Shyam at the end of three months and Shyam in turn will pay

cash equivalent to the TV price on delivery.

Illustration 2:

Ram is an importer who has to make a payment for his consignment in six months time. In

order to meet his payment obligation he has to buy dollars six months from today. However, he is

not sure what the Re/$ rate will be then. In order to be sure of his expenditure he will enter into a

contract with a bank to buy dollars six months from now at a decided rate. As he is entering into a

contract on a future date it is a forward contract and the underlying security is the foreign

currency.

The difference between a share and derivative is that shares/securities is an asset while

derivative instrument is a contract

Index

To understand the use and functioning of the index derivatives markets, it is necessary to

understand the underlying index. A stock index represents the change in value of a set of stocks,

which constitute the index. A market index is very important for the market players as it acts as a

barometer for market behavior and as an underlying in derivative instruments such as index

futures.

The Sensex and Nifty

In India the most popular indices have been the BSE Sensex and S&P CNX Nifty. The BSE

Sensex has 30 stocks comprising the index which are selected based on market capitalization,

industry representation, trading frequency etc. It represents 30 large well-established and

financially sound companies. The Sensex represents a broad spectrum of companies in a variety of

industries. It represents 14 major industry groups. Then there is a BSE national index and BSE 200.

However, trading in index futures has only commenced on the BSE Sensex.

While the BSE Sensex was the first stock market index in the country, Nifty was launched by

the National Stock Exchange in April 1996 taking the base of November 3, 1995. The Nifty index

consists of shares of 50 companies with each having a market capitalization of more than Rs 500

crore.

Futures and stock indices

For understanding of stock index futures a thorough knowledge of the composition of

indexes is essential. Choosing the right index is important in choosing the right contract for

speculation or hedging. Since for speculation, the volatility of the index is important whereas for

hedging the choice of index depends upon the relationship between the stocks being hedged and

the characteristics of the index.

Choosing and understanding the right index is important as the movement of stock index

futures is quite similar to that of the underlying stock index. Volatility of the futures indexes is

generally greater than spot stock indexes.

Every time an investor takes a long or short position on a stock, he also has an hidden

exposure to the Nifty or Sensex. As most often stock values fall in tune with the entire market

sentiment and rise when the market as a whole is rising.

Retail investors will find the index derivatives useful due to the high correlation of the index

with their portfolio/stock and low cost associated with using index futures for hedging

Understanding index futures

A futures contract is an agreement between two parties to buy or sell an asset at a certain

time in the future at a certain price. Index futures are all futures contracts where the underlying is

the stock index (Nifty or Sensex) and helps a trader to take a view on the market as a whole.

Index futures permits speculation and if a trader anticipates a major rally in the market he

can simply buy a futures contract and hope for a price rise on the futures contract when the rally

occurs. We shall learn in subsequent lessons how one can leverage ones position by taking position

in the futures market. In India we have index futures contracts based on S&P CNX Nifty and the BSE

Sensex and near 3 months duration contracts are available at all times. Each contract expires on

the last Thursday of the expiry month and simultaneously a new contract is introduced for trading

after expiry of a contract.

Example:

Futures contracts in Nifty in July 2006

Contract month Expiry/settlement

July 2006 July 27

August 2006 August 24

September 2006 September 28

                               

On July 27

Contract month Expiry/settlement

August 2006 August 25

September 2006 September 28

October 2006 October 26

The permitted lot size is 100 or multiples thereof for the Nifty. That is you buy one Nifty

contract the total deal value will be 100*3000 (Nifty value)= Rs 3,00,000.

In the case of BSE Sensex the market lot is 50. That is you buy one Sensex futures the total

value will be 50*4000 (Sensex value)= Rs 2,00,000.

The index futures symbols are represented as follows:

BSE NSE

BSXJUN2006 (June contract) FUTDXNIFTY28-JUN2006

BSXJUL2006 (July contract) FUTDXNIFTY28-JUL2006

BSXAUG2006 (Aug contract) FUTDXNIFTY28-AUG2006

Stock markets by their very nature are fickle. While fortunes can be made in a jiffy more

often than not the scenario is the reverse. Investing in stocks has two sides to it –a) Unlimited profit

potential from any upside (remember Infosys, HFCL etc) or b) a downside which could make you a

pauper. Derivative products are structured precisely for this reason -- to curtail the risk exposure of

an investor. Index futures and stock options are instruments that enable you to hedge your portfolio

or open positions in the market. Option contracts allow you to run your profits while restricting your

downside risk. Apart from risk containment, options can be used for speculation and investors can

create a wide range of potential profit scenarios.

We have seen in the Derivatives School how index futures can be used to protect oneself

from volatility or market risk. Here we will try and understand some basic concepts of options.

What are options?

An option is a contract, which gives the buyer the right, but not the obligation to buy or sell

shares of the underlying security at a specific price on or before a specific date. ‘Option’, as the

word suggests, is a choice given to the investor to either honour the contract; or if he chooses not

to walk away from the contract.

To begin, there are two kinds of options: Call Options and Put Options.

A Call Option is an option to buy a stock at a specific price on or before a certain date. In this way,

Call options are like security deposits. If, for example, you wanted to rent a certain property, and

left a security deposit for it, the money would be used to insure that you could, in fact, rent that

property at the price agreed upon when you returned. If you never returned, you would give up

your security deposit, but you would have no other liability. Call options usually increase in value as

the value of the underlying instrument rises. When you buy a Call option, the price you pay for it,

called the option premium, secures your right to buy that certain stock at a specified price called

the strike price. If you decide not to use the option to buy the stock, and you are not obligated to,

your only cost is the option premium.

Put Options are options to sell a stock at a specific price on or before a certain date. In this

way, Put options are like insurance policies. If you buy a new car, and then buy auto insurance on

the car, you pay a premium and are, hence, protected if the asset is damaged in an accident. If this

happens, you can use your policy to regain the insured value of the car. In this way, the put option

gains in value as the value of the underlying instrument decreases. If all goes well and the

insurance is not needed, the insurance company keeps your premium in return for taking on the

risk. With a Put Option, you can "insure" a stock by fixing a selling price. If something happens

which causes the stock price to fall, and thus, "damages" your asset, you can exercise your option

and sell it at its "insured" price level. If the price of your stock goes up, and there is no "damage,"

then you do not need to use the insurance, and, once again, your only cost is the premium. This is

the primary function of listed options, to allow investors ways to manage risk.

Technically, an option is a contract between two parties. The buyer receives a privilege for which he

pays a premium. The seller accepts an obligation for which he receives a fee.

Call option

An option is a contract between two parties giving the taker (buyer) the right, but not the

obligation, to buy or sell a parcel of shares at a predetermined price possibly on, or before a

predetermined date. To acquire this right the taker pays a premium to the writer (seller) of the

contract.

There are two types of options:

Call Options

Put Options

Call options

Call options give the taker the right, but not the obligation, to buy the underlying shares at a

predetermined price, on or before a predetermined date.

Illustration 1:

Raj purchases 1 Satyam Computer (SATCOM) AUG 150 Call --Premium 8 This contract allows Raj to

buy 100 shares of SATCOM at Rs 150 per share at any time between the current date and the end

of next August. For this privilege, Raj pays a fee of Rs 800 (Rs eight a share for 100 shares).

The buyer of a call has purchased the right to buy and for that he pays a premium.

Now let us see how one can profit from buying an option.

Sam purchases a December call option at Rs 40 for a premium of Rs 15. That is he has purchased

the right to buy that share for Rs 40 in December. If the stock rises above Rs 55 (40+15) he will

break even and he will start making a profit. Suppose the stock does not rise and instead falls he

will choose not to exercise the option and forego the premium of Rs 15 and thus limiting his loss to

Rs 15.

.

Let us take another example of a call option on the Nifty to understand the concept better.

Nifty is at 3000. The following are Nifty options traded at following quotes.

Option contract Strike price Call premium

JUNE Nifty 3000 Rs 90

3100 Rs 65

JULY Nifty 3000 Rs 160

3100 Rs 130

A trader is of the view that the index will go up to 3100 in July 2006 but does not want to

take the risk of prices going down. Therefore, he buys 10 call of July contracts at 3100. He pays a

premium for buying calls (the right to buy the contract) for 130*10*100= Rs 130000/-.

In July 2006 suppose the Nifty index goes up to 3100. He sells the call or exercises the option and

takes the difference in spot index price which is (3100-3000) * 100 (market lot) = 10,000 per

contract. Total profit = 100,000/- (10,000*10).

He had paid Rs 130,000/- premium for buying the call option. So he earns by buying call option is

Rs 40,000/- (130,000-60,000).

If the index falls below 3100 the trader will not exercise his right and will opt to forego his premium

of Rs 60,000. So, in the event the index falls further his loss is limited to the premium he paid

upfront, but the profit potential is unlimited.

Call Options-Long & Short Positions

When you expect prices to rise, then you take a long position by buying calls. You are

bullish.

When you expect prices to fall, then you take a short position by selling calls. You are

bearish.

Hedging

We have seen how one can take a view on the market with the help of index futures. The

other benefit of trading in index futures is to hedge your portfolio against the risk of trading. In

order to understand how one can protect his portfolio from value erosion let us take an example.

Illustration:

Ram enters into a contract with Shyam that six months from now he will sell to Shyam 10 dresses for Rs 4000. The cost of

manufacturing for Ram is only Rs 1000 and he will make a profit of Rs 3000 if the sale is completed.

Cost (Rs) Selling price Profit

1000 4000 3000

However, Ram fears that Shyam may not honour his contract six months from now. So he inserts a new clause in the contract that if

Shyam fails to honour the contract he will have to pay a penalty of Rs 1000. And if Shyam honours the contract Ram will offer a

discount of Rs 1000 as incentive.

Shyam defaults Shyam honours

1000 (Initial Investment) 3000 (Initial profit)

1000 (penalty from Shyam) (-1000) discount given to Shyam

- (No gain/loss) 2000 (Net gain)

As we see above if Shyam defaults Ram will get a penalty of Rs 1000 but he will recover his initial

investment. If Shyam honours the contract, Ram will still make a profit of Rs 2000. Thus, Ram has

hedged his risk against default and protected his initial investment.

The above example explains the concept of hedging. Let us try understanding how one can use

hedging in a real life scenario.

Stocks carry two types of risk – company specific and market risk. While company risk can

be minimized by diversifying your portfolio market risk cannot be diversified but has to be hedged.

So how does one measure the market risk? Market risk can be known from Beta.

Beta measures the relationship between movement of the index to the movement of the

stock. The beta measures the percentage impact on the stock prices for 1% change in the index.

Therefore, for a portfolio whose value goes down by 11% when the index goes down by 10%, the

beta would be 1.1. When the index increases by 10%, the value of the portfolio increases 11%. The

idea is to make beta of your portfolio zero to nullify your losses.

Hedging involves protecting an existing asset position from future adverse price

movements. In order to hedge a position, a market player needs to take an equal and opposite

position in the futures market to the one held in the cash market.

Every portfolio has a hidden exposure to the index, which is denoted by the beta. Assuming

you have a portfolio of Rs 1 million, which has a beta of 1.2, you can factor a complete hedge by

selling Rs 1.2 mn of S&P CNX Nifty futures.

Steps:

1. Determine the beta of the portfolio. If the beta of any stock is not known, it is safe to

assume that it is 1.

2. Short sell the index in such a quantum that the gain on a unit decrease in the index would

offset the losses on the rest of his portfolio. This is achieved by multiplying the relative

volatility of the portfolio by the market value of his holdings.

Therefore in the above scenario we have to shortsell 1.2 * 1 million = 1.2 million worth of Nifty

Now let us study the impact on the overall gain/loss that accrues:

 Index up 10% Index down 10%

Gain/(Loss) in PortfolioRs 120,000 (Rs 120,000)

Gain/(Loss) in Futures(Rs 120,000) Rs 120,000

Net EffectNil Nil

As we see, that portfolio is completely insulated from any losses arising out of a fall in

market sentiment. But as a cost, one has to forego any gains that arise out of improvement in the

overall sentiment. Then why does one invest in equities if all the gains will be offset by losses in

futures market. The idea is that everyone expects his portfolio to outperform the market.

Irrespective of wh The same methodology can be applied to a single stock by deriving the beta of

the scrip and taking a reverse position in the futures market.

Thus, we have seen how one can use hedging in the futures market to offset losses in the cash

market. Either the market goes up or not, his portfolio value would increase.

Speculation

Speculators are those who do not have any position on which they enter in futures and

options market. They only have a particular view on the market, stock, commodity etc. In short,

speculators put their money at risk in the hope of profiting from an anticipated price change. They

consider various factors such as demand supply, market positions, open interests, economic

fundamentals and other data to take their positions.

Example:

Ram is a trader but has no time to track and analyze stocks. However, he fancies his

chances in predicting the market trend. So instead of buying different stocks he buys Sensex

Futures.

On May 1, 2001, he buys 100 Sensex futures @ 3600 on expectations that the index will rise in

future. On June 1, 2001, the Sensex rises to 4000 and at that time he sells an equal number of

contracts to close out his position.

Selling Price : 4000*100            = Rs 4,00,000

Less: Purchase Cost: 3600*100 = Rs 3,60,000

Net gain = Rs 40,000 Ram has made a profit of Rs 40,000 by taking a call on the future value of the

Sensex. However, if the Sensex had fallen he would have made a loss. Similarly, if would have been

bearish he could have sold Sensex futures and made a profit from a falling profit. In index futures

players can have a long-term view of the market up to at least 3 month.

Arbitrage

An arbitrageur is basically risk averse. He enters into those contracts were he can earn

riskless profits. When markets are imperfect, buying in one market and simultaneously selling in

other market gives riskless profit. Arbitrageurs are always in the look out for such imperfections.

In the futures market one can take advantages of arbitrage opportunities by buying from lower

priced market and selling at the higher priced market. In index futures arbitrage is possible

between the spot market and the futures market (NSE has provided a special software for buying

all 50 Nifty stocks in the spot market.

Take the case of the NSE Nifty.

Assume that Nifty is at 1200 and 3 month’s Nifty futures is at 1300.

The futures price of Nifty futures can be worked out by taking the interest cost of 3 months

into account.

If there is a difference then arbitrage opportunity exists

. Let us take the example of single stock to understand the concept better. If Wipro is quoted at Rs

1000 per share and the 3 months futures of Wipro is Rs 1070 then one can purchase ITC at Rs 1000

in spot by borrowing @ 12% annum for 3 months and sell Wipro futures for 3 months at Rs 1070.

Sale                = 1070

Cost = 1000+30

Arbitrage profit =    1040

These kinds of imperfections continue to exist in the markets but one has to be alert to the

opportunities as they tend to get exhausted very fast.

FINDINGS AND ANALYSIS

ANALYSIS OF THE PREFERRED INVESTMENT AREA

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

Shares, Mutual Fund, Real Estate and insurance plans.

Following observations can be made on the basis of above analysis:

Bank Deposits being the most preferred area, 43% respondents out of

hundred invested in bank deposits.

The second preferred area was Shares as 27% respondents were investing in

the share market.

Then preferred area was the Mutual Funds with 13% of respondents

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

.

ANALYSIS OF THE FACTORS AFFECTING INVESTMENT

The factors are categorized in to four parameters to know the purpose of

investment made by the investor.

52% respondents go invests for higher returns.

29% respondents prefer Moderate Return for their investments.

15% prefer moderate risk.

Only 4% for Low risk.

ANALYSIS FOR INTERMEDIATING COMPANY

These factors are categorized into brokerage, Information provided by them

the exposure limit or loan facility provided by them and their Brand Name.

21% respondents choose Kotak Securities Ltd.

38% respondents choose Indiabulls Securities Ltd. for trading.

7% respondents choose ICICI direct.

4% respondents choose Fortis.

30% go for others.

ANALYSIS OF THE FACTORS FOR BROKING HOUSE

These factors are categorized into brokerage, Information provided by them

the exposure limit or loan facility provided by them and their Brand Name.

44% respondents choose their broking house on basis of information

provided by them.

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

12% by the brokerage charge by the broking house.

16% by Brand Name.

ANALYSIS OF THE INFLUENCE OF THE PAST PROFILE OF A

COMPANY

58% respondents say yes they study profile of the company before

making investment.

42% respondents say no.

ANALYSIS OF THE REQUIREMENT OF EXPERTISE

93% respondents say yes, they required expertise knowledge.

7% respondents say no.

MOST IMPORTANT SERVICE PARAMETER

The most important service parameter that came up as a result of survey

is Information i.e. the investors feel that the information contained in the

service package is the key to more profits.

Second major parameter is Quality of service.

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

other aspect.

CONCLUSION

The perceptions of people about share markets are very strong. But they

can be influenced, if not completely changed.

The reason people prefer staying away from the share markets is lack of

confidence - about their own understanding of the market and the very nature of

the market.

The fact that stock markets themselves are volatile and wide open to changes in

external forces makes it much more difficult for people to consider them as an

investment alternative.

The right kind of campaigning directed towards increasing the awareness of

people will get new customers. But more than that, this campaign will help retain

customers, which is the key to staying ahead in the market.

Indiabulls Securities is currently one of the biggest broking houses in the country

and its strategies to penetrate further into the market will certainly take it way

ahead of its competitors.

RECOMMENDATIONS

INTRODUCTION PROGRAMS must be held for the sales teams before letting them go into the

field. In these induction classes the experienced sales staff employees should share their

valuable live experiences and knowledge, which they have experienced while in field.

Weekly magazines must be published and distributed to the investors that can help them for

making better investments.

Sales team must be fully equipped with latest technology such as using Laptop that can be

used for making presentation to the customers especially to the corporate clients about their

product and services provided by them.

Make your site user friendly so that more and more people know about trading and do the

same also.

Advertisement through Canopy, help to generate leads.

Company should advertise with a concern that has a brand name in the market.

Promotional Strategies

Press publicity: Outdoor publicity:

Press publicity:

Paper inserts Advertisements in newspaper (local and national).

Interest cards distribution

Mailers/personal invitations to selective section of the society

Leaflets

Outdoor publicity:

Banners in commercial areas and prime sites. Air balloons at shopping complex.

Bus stands shelters.

Off site ATM for developing business

BIBLIOGRAPHY

www.indiabulls.com

www.nseindia.com

www.bseindia.com

www.sebi.gov.in

www.moneycontrole.com

Economics Times

C.R. Kothari, Marketing Research

NCFM W.Breen, “Low Price-Earnings Ratio & Industry Relatives”,

Financial Analysts’ Journal, July-Feburary 1968.

W.Breen & Savage J. “Portfolio Distribution & Security Selection

Models”, Journal of Finance, December 1968.

S.Basu, “Investment Performance of Common Stocks in Relation to

Their Price-Earning Ratios: A Test of the Efficient Market Hypothesis”,

Journal of Finance, June 1977.

Basu, Sanjoy, "The Relationship between Earnings Yield, Market Value

and Return for NYSE Common Stocks: Further Evidence," Journal of

Financial Economics 12 (1983): 129-156.

Indiabulls Broachres and Mannuals