TABLE OF CONTENTS

ACKNOWLEDGEMENT.....................................................................................................................3

INTRODUCTION ABOUT PHILLIP CAPITAL.................................................................................4

COMPETITIVE ANALYSIS................................................................................................................5

COMPETITORS...................................................................................................................................7

PRODUCTS........................................................................................................................................10

IDENTIFICATION OF TRADING OPPORTUNITIES.....................................................................19

ACKNOWLEDGEMENT

We take this opportunity to express our profound gratitude and deep regards to our

mentor Mr. Sharad Kumar, Assistant Vice President (Sales), Phillip Capital, with more

than eight years of experience of working in financial services industry for his exemplary

guidance, mentoring and constant encouragement throughout the course of this project.

The help and guidance given by him from time to time shall carry us a long way in the

journey of life on which we are about to embark.

We also take this opportunity to express a deep sense of gratitude to Mr. Vinit Lodaya, a

relationship manager with Phillip Capital India Pvt Ltd., with more than five years of

experience in trading and research with financial companies, for his cordial support,

valuable information and guidance, which helped us in completing this project through

various stages.

We also take this opportunity to express a deep sense of gratitude to Prof. Debashish

Ghosh, faculty guide and a professor of Finance, for his timely guidance, cordial support,

valuable information which helped us in completing this project through various stages.

Mr. Sharad Kumar Prof. Debashish GhoshAssistant Vice President (Sales) Faculty GuidePhillip Capital India Pvt. Ltd. NMIMS

INTRODUCTION ABOUT PHILLIP CAPITAL

Phillip Capital is a Singapore headquartered multinational brokerage firm. Began in 1975,

Phillip Capital has Assets under management worldwide which totals more than USD 18

Billion with shareholders' funds in excess of USD 1 Billion. It is an integrated financial

institution which offers a full range of quality and innovative financial services to retail,

corporate and institutional customers. The comprehensive suite of financial services from

Phillip Capital include fund management, unit trusts, insurance planning, investment

research and broking in bonds, securities, futures, foreign exchange, precious metals and

commodities.

It operates in the financial hubs of 16 countries, with offices in India, Singapore,

Malaysia, Indonesia, Thailand, Hong Kong, China, Japan, Sri Lanka, United Kingdom,

France, Turkey, Australia, Dubai and USA.

Phillip Capital expanded business in India by the mode of acquiring MF Global’s Indian

Assets. Phillip Capital (India) Pvt Ltd is headquartered in Mumbai and offers online,

offline equity and derivatives trading for retail customers as well as execution and

clearing services for financial institutions.

Phillip Capital (India) Pvt Ltd. is a trading and clearing member of the NSE & BSE for

Capital Market segment AND Futures and Options segment. IN Currency Derivative

Segment, it is trading & Clearing member of NSE & MCX-SX. It is also a depository

participant with NSDL and CDSL.

Phillip Commodities India Pvt Ltd is a 100% subsidiary of Phillip Capital (India) Pvt Ltd.

Phillip Commodities India Pvt Ltd is a trading and clearing member of MCX, NCDEX.

In spot Market segment, it is member with National Spot Exchange of India (NSEL),

NCDEX Spot and Indian Energy Exchange (IEX).

COMPETITIVE ANALYSIS

Phillip Capital India provides various services, which give them an edge over their

competitors. The services available are:

Institutional Client Group

The company provides highly developed systems for institution and corporate traders,

including comprehensive trading capabilities such as automated trading, algorithm

trading and spread legging.

Retail Client Group

The company offers retail clients a full range of options in trading, investment and protection. The different facilities available are:

Trading – Dealing Desk

A strong dedicated dealing desk and client servicing team is available at Phillip

Capital that supports their partners for a seamless experience to add human

touch to their trading experience.

Investment

Investment objectives are different for each individual. So the company

designed multiple investment options to cater to all categories of individuals.

Protection

The company has associations with some of the best life and general insurance

companies provide clients with a wide range of options to suit their insurance

needs and objectives.

Business Associate Group

The company offers a complete suite of products with best in-class technology for sub-

brokers to service their clients effectively.

Private Client Group

The company offers a personalized approach by dedicating a Relationship Manager and

giving the clients an advantage over others in equity research, trade execution and

settlement.

Online Trading

The company offers trading in NSE, BSE, MCX-SX, MCX and NCDEX and products

ranging from Forex, commodities, cash and F&O equities.

Margin Funding

Margin funding is provided to clients to get instant liquidity from their investment

without selling them.

Clearing Services

As a Clearing Member, the company is responsible for clearing and settlement of clients'

trades as well as trades of other Trading Members & Custodial Participants.

Equity, Commodity & Currency Research

The company has dedicated resources providing research services by product (equities,

commodities or Forex), segment (Large, Mid and Small Cap) and industry specific.

COMPETITORS

Phillip Capital faces tough competition from various brokerage firms available in India.

Some of them are:

Angel Broking

Angel Broking's tryst with excellence in customer relations began in 1987. Today, Angel

has emerged as one of the most respected Stock-Broking and Wealth Management

Companies in India. It provides the maximum number of online trading platforms like

Angel Eye, Angle Speedpro, Angel Swift, and Angel Lite etc.

The brokerage charges are as follows:

Account Opening Charge: Rs. 390

Annual Maintenance Charge: Rs. 300 (1st year free)

Brokerage: 30p (delivery), 6p (intra-day)

Access: Online, Branch

ICICI Direct

ICICI Direct is by far the biggest and best know stockbroker in India. They have good

service and easy to use interface. They provide a unique 3 in 1, 2 in 1 online trading

account, which makes trading much more easily. Their services include seamless trading,

award winning research, rich content, speed and control.

The brokerage charges are as follows:

Account Opening Charge: Rs. 975

Annual Maintenance Charge: Rs. 500/450

Brokerage: 0.55% (delivery), 0.05% (intra- day)

Access: Online, Phone, Branch

India Infoline

India Infoline is popularly known as IFL and they are engaged in stock broking industry

for quite a number of years now. Recently, they earned recognition for Securities Trading

and Clearing Memberships from Singapore Exchange and thereby they received the pride

of being the first company to earn membership from SGX in India. In addition to stock

broking service, they offer a wide range of services like investment banking, wealth

management service, insurance, credit & finance, commodities and equities.

The brokerage charges are as listed below:

Account Opening Charge: Rs. 750

Annual Maintenance Charge: Rs. 0 (lifetime free)

Brokerage: 50p (delivery), 5p bothsides (intra-day)

Access: Online, Branch

Sharekhan

Share Khan stock broking company offers equity related services like trade execution on

online trading, depository services, commodities, derivatives, NSE, BSE and they also

offer investment advice.

The brokerage charges are as follows:

Account Opening Charge: Rs. 750 Rs. 160 franking charge

Annual Maintenance Charge: Rs. 441 (1st year free)

Brokerage: High of 0.5% (delivery), 0.1% (intra-day)

Access: Online, Branch

Indiabulls

Indiabulls Securities Limited is a leading stock broking company in India with large

network branches all over the country. They have a customer base of more than seven

lakh-satisfied customers with online stock trading platform. Some of their products and

services are depository services, integrated trading terminal, mobile power Indabulls,

Indiabulls equity analysis, tradelite, currency derivatives, etc.

The brokerage charges are as follows:

Account Opening Charge: Rs. 1350

Annual Maintenance Charge: Rs. 450

Brokerage: 0.30% (delivery), 0.05% (intra-day)

Access: Online, Branch

PRODUCTS

Daily Basket

Daily Basket (DB) is a market neutral intraday cash market trading strategy initiated on

liquid stocks in the derivatives segment. The genesis of the trade is buying or selling

strength of a stock. It is the continuation of trend or directional movement in stocks.

Daily Basket captures the strength in a disciplined way by initiating buy / sell intraday

position in stocks for the day, every day. The stocks which are in an uptrend are bought

where as stocks in a down trend are sold. In total 10 stocks are bought / sold, i.e. 5 buy

and 5 sell. After initiation, DB tries to capture the profit which is almost equal for all the

trades buy / sell. The stop loss is also almost equal for all the trades initiated. This

strength following intraday cash market trading strategy is initiated at 9:30 am is closed

out at 3:15 pm.

The 5 underlying building blocks of Daily Basket are

• “Market Neutral”

• “Strength”

• “Liquid Stocks”

• “Equal Exposure”

• “Profit / Stop Loss”

Features

• Intraday Cash Market Trade

• Liquid scrips from FnO segment

• Equal Exposure per scrip

• Trade initiated at 9:30 am

• Exit Trigger - Predecided Profit / Stop Loss / Square up at 3:15 pm

An investment of Rs 5 lakhs per stock is fixed at the start of the trade and the amount of

profit and stop loss limit is also pre decided before the trade is executed. The amount of

profit fixed for each stock is 7500 and the amount of stop loss limit is 2500 for each

stock.

The performance table below shows the performance of DB over a couple of months on

an investment of Rs 50 lakhs, 5 lakhs each for 10 stocks.

Performance table given below is net of charges based on exposure per stock of Rs 5

Lakh.

Month Net Profit and Loss

August 12 40,512

September 12 59,385

October 12 -84,611

November 12 75,046

December 12 -11,112

January 13 37,195

An example of a trade executed in Daily Basket is shown below.

500000BUY Prev

Close QtyULTRACEMCO 1978.2 253INDUSINDBK 493.2 1014HDFC 885 565TATAMOTORS 300.25 1665POWERGRID 114.75 4357SELLACC 1215.4 411IOC 291.8 1714HINDPETRO 304.8 1640

DRREDDY1998.75 250

SAIL 63.25 7905

The quantity of stocks bought / sold is the quotient of the investment of Rs 5 lakhs in

each stock and the previous closing price of the stock.

500000 7500 2500BUY Prev

Close Qty 9:30Live / Exit Profit SL

PL Status NET

ULTRACEMCO 1978.2 253 1995.5 1995.95 2025.15 1985.6 114

782

INDUSINDBK 493.2 1014 490.5 490.95 497.9 488 456

HDFC 885 565 897.65 897.5 910.95 893.2 -85

TATAMOTORS 300.25 1665 301.8 301.8 306.35 300.25 0

POWERGRID 114.75 4357 114.15 114.1 115.9 113.55 -218

SELL #N/A #N/A

ACC 1215.4 411 1214.1 1214.1 1195.85 1220.2 0

IOC 291.8 1714 290.45 290.15 286.05 291.95 514

HINDPETRO 304.8 1640 305 305 300.4 306.55 0

DRREDDY 1998.75 250 1990.55 1990.55 1960.55 2000.55 0

SAIL 63.25 7905 63.35 63.35 62.4 63.7 0

The net profit figure is the total of the profits generated from all the trades executed. The

Live/Exit price is the current price of the stock, minutes after the stock market opens.

500000 7500 2500BUY Prev

Close Qty 9:30Live / Exit Profit SL

PL Status NET

ULTRACEMCO 1978.2 253 1995.5 2004 2025.15 1985.6 2151

-20981

INDUSINDBK 493.2 1014 490.5 488 497.9 488 -2535 SL

HDFC 885 565 897.65 893.2 910.95 893.2 -2514 SL

TATAMOTORS 300.25 1665 301.8 300.25 306.35 300.25 -2581 SL

POWERGRID 114.75 4357 114.15 113.55 115.9 113.55 -2614 SL

SELL #N/A #N/A

ACC 1215.4 411 1214.1 1220.2 1195.85 1220.2 -2507 SL

IOC 291.8 1714 290.45 291.95 286.05 291.95 -2571 SL

HINDPETRO 304.8 1640 305 306.55 300.4 306.55 -2542 SL

DRREDDY 1998.75 250 1990.55 2000.55 1960.55 2000.55 -2500 SL

SAIL 63.25 7905 63.35 63.7 62.4 63.7 -2767 SL

The stocks marked in red are those for which stop loss has been hit and the trade has been

settled by the end of the trading day. The maximum loss on each stock is nearly 2500 as

decided beforehand. The ratio of profit to loss that can be generated on each stock is 3:1.

NIBOTS

New Intraday BreakOut Trading Strategy (NIBOTS) is systematic break out trading

strategy initiated on many liquid stocks. The genesis of the trade is capturing the trend or

directional movement in stocks.

NIBOTS captures the trend by buying & selling stocks which break above the high or

breaks below the low. After initiation the NIBOTS tries to capture the profit which is

almost equal for all the trades buy / sell. The stop loss is also almost equal for all the

trades. This break out intraday cash market trading strategy initiated at 9:30 am is closed

out at 3:15 pm.

The 5 underlying building blocks of NIBOTS are:

• “Break Out”

• “Liquid Stocks”

• “Buy / Sell”

• “Equal Exposure”

• “Profit / Stop Loss”

Features• Intraday Cash Market Trade

• Top 20 scrips decided for the month

• Out of these 20 scrips, stocks for the day are decided on live price

• Equal Exposure per scrip

• Initiation trigger is High / Low of the previous day

• Exit Trigger - Predecided Profit / Stop Loss

The performance table given below shows the performance of NIBOTS based on

exposure of Rs 1 Lakh per stock.

Month Net Profit and Loss

October 12 -45,420

November 12 10,799

December 12 -27,103

January 13 -20,620

An example of a trade executed in NIBOTS is shown below.

A list of 20 stocks or scrips is decided by the research team for a particular month and the

stocks are picked for NIBOTS out of those 20 stocks. An investment of Rs 1 lakh is made

in each of the stock decided for NIBOTS.

The stocks marked in red are those for which stop loss has been hit and the stock in green

is one for which the profit target has been achieved and the trade has been closed during

the day.

Nifty FuturesHigh 6067Low 6027

New Intraday Break Out 2213Stock Action Trade

PriceTrgt SL Exposure Qty Live /

Exit Price

PL Comments

HDFC BUY 860.8 877.90 852.25 100000 117 877.9 2001 TargetHDFCBANK BUY 689.9 703.70 683.00 100000 145 695.7 841HINDUNILVR BUY 582.75 594.35 576.95 100000 173 586.65 675ICICIBANK BUY 1172 1195.30 1160.35 100000 86 1160.35 -1002 SLINFY BUY 2361.75 2408.30 2338.45 100000 43 2338.45 -1002 SLITC BUY 336.6 343.35 333.20 100000 298 342.45 1743LT SELL 1560 1528.25 1575.90 100000 63 1560.2 -13RELCAPITAL SELL 380.3 372.60 384.15 100000 260 379 338SBIN BUY 2264 2309.50 2241.25 100000 44 2253.1 -480TATASTEEL BUY 326.4 332.90 323.15 100000 308 323.15 -1001 SLTCS BUY 1478.85 1508.30 1464.10 100000 68 1480.5 112

 

Option Trading Strategies

These strategies are used to create extraordinary payoff profiles.Some of the most

common trading strategies used are:-

Covered Call

Protective put

Spread

Butterfly

Straddle

Strangle

Collor

Strip

Strap

1) Long Straddle: - Bought Both Call and Put at the same strike price of 2300.

125 call were bought at a price of 67.75 each and 125 puts were bought at a

price of 63.15 each.

Profit realised was Rs. 1431.25

2) Option Trade Recommendation: Nifty Ratio Put Strategy

1.     Short Nifty June 5800 Put @44.6

2.     Short Nifty June 5900 put @ 72.9

3.     Long Nifty June 6000 Put @ 112.9

 

Strategy is profitable above 5695.4 of Nifty,

Above 6000 of Nifty we will get 4.6

Maximum Profit @ 5900 of Nifty

Argument: Market is expected to trade in between the 5800 to 6100 levels in June series. If it goes around 5700 levels still we will be in profit. The strategy would be in loss only below 5695.4 levels at expiry.

 

http://www.moneycontrol.com/news/market-outlook/nifty-to-hover58406150-for-few-weeks-icici-direct_888380.html

Payoff of Put Strategy:-

3) Short Strangle:-

SEIP

Phillip Capital - Systematic Equity Investment Plan (SEIP) is a systematic investment in

top 10 holdings of the mutual fund instead of the Net Asset Value (NAV) of the fund.

The points below explain Phillip Capital - SEIP idea of investing in top 10 holdings.

Key Features:

• Investing in Top 10 holdings instead of NAV of the fund

• Quarterly investment from April 2010 till October 2012

• Investment of Rs 10,000 per scrip every quarter or 1 Lac at NAV per quarter

• Total Investment of 11 Lakhs over 11 quarters

The table below compares the performance of the top 10 holdings and the NAV of the

fund.

FundTotal

Investment

Value of Top 10

Scrips

Value ofNAV

Comments

Canara Robeco Equity

Tax Saver(G)1,100,000 1,172,983

1,255,94

0

Mutual Fund OutPerformance after May

2011

DSP Top 100 Equity 1,100,000 1,201,3251,227,33

2

Phillip Capital SEIP OutPerformance

approx 70% of Time between April10 to

Dec12

Franklin India Blue

Chip1,100,000 1,171,276

1,222,24

5

Mutual Fund OutPerformance after April

2011

HDFC Top 200(G) 1,100,000 1,188,7491,202,63

7

Phillip Capital SEIP OutPerformance

approx 80% of Time between April10 to

Nov12

IDENTIFICATION OF TRADING OPPORTUNITIES

Identification of trading opportunities was an exhaustive task, because every person has

different risk appetite, different required rate of return and a different capacity to invest.

Investments in SLBS

By having an initial look at the profile of the investor, it can’t be predicted that what kind

of trading strategy will suit him. But still primary call serves the purpose. By way of cold

calls, we get firsthand information about the investor.

The following categories of investors are more interested in SLBS

1. People who have large holdings lying idle in their portfolio

2. People who have shares in physical form ( paper form & not in dematerialized

form)

3. Senior citizens

4. People who are highly risk averse

5. People who don’t have much time to invest but have portfolios for future

obligations

But above all the basic requirement is that the investor should have stocks which are

traded in F&O section. From July onwards, stocks of A group companies will also be

available for SLBS.

Now, once the appointment is fixed, face to face interaction with the client helps to

understand the profile of the investor in a much broader way.

Investments in NSEL

A wide group of investors generally refrain from investing in commodities; they consider

it as a highly risky venture. But when explained further the following categories of

investors looks to be interested –

1. HNI’s

2. CA’s, Lawyers

3. Businessman

Once a client is convinced that it is an opportunity they will get good returns as compared

to FD’s they are ready to park in their funds. But again the basic requirement here is the

margin money. So, people who are having big amount to invest only they finds it feasible.

Unlike the SLBS, where no fresh funds were required, here margin money is required to

start trading.

It has happened many a times when the client wants to invest but don’t have large funds,

so there are some options available in agricultural commodities which requires less

amount of margin money to start with.

Investments in Daily basket

Clients who do intraday trading and are willing to put in the margin money finds it

interesting. Again the following category of investors invest in DB-

1. Intraday traders

2. Risk taking individuals

3. HNI’s who want to earn high profits but don’t have time to study the market

Here the category of investors is entirely different from that of NSEL and SLBS, there

people were demanding assured returns and were highly risk averse here the clientele

wants supernormal returns and is willing to take large risk.

Investment in NIBOTS

Similar category of clients is interested in NIBOTS.

Apart from most general way of identification of trading needs there are other ways also

by which investors are educated about investment opportunities-

1. Corporate seminars

2. Webinars

3. Emails

Corporate seminars

It is a very useful way of educating the client, people in group sit together to see

the presentation given by the equity research analyst. It serves as a substitute to

cold calling, where we can make investors aware of the products in group and they

can ask relevant questions. People who seems interested call the company or leave

their personal contact no. after which a continuous follow up leads to a successful

closure.

Here the client has a vast array of products to choose according to his trading

needs.

Webinars

Webinars are usually conducted every week by the analysts of the company and

are of around 30 minutes. Here the investor learns a specific trading strategy every

time and can ask his doubts at the moment. It is a short and easy way of

understanding the trading strategy.

Emails

A brief presentation on the products is available in the softcopy format also, which

is mailed to the prospective clients. Many a times, before fixing an appointment

the client urges to first get some basic information on products, so that he can go

through them, understand the product and can be prepared for asking queries.

Arbitrage

An arbitrage transaction is defined as the simultaneous purchase and sale of an asset in

order to profit from a difference in the price. It is a trade that profits by exploiting price

differences of identical or similar financial instruments, on different markets or in

different forms. Arbitrage exists as a result of market inefficiencies; it provides a

mechanism to ensure prices do not deviate substantially from fair value for long periods

of time.

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, it is the possibility of a risk-free profit at zero cost.

Arbitrage is possible when one of three conditions is met:

1. The same asset does not trade at the same price on all markets ("the law of one

price").

2. Two assets with identical cash flows do not trade at the same price.

3. An asset with a known price in the future does not today trade at its future

price discounted at the risk-free interest rate (or, the asset does not have negligible

costs of storage; as such, for example, this condition holds for grain but not

for securities).

Arbitrage is not simply the act of buying a product in one market and selling it in another

for a higher price at some later time. The transactions must occur simultaneously to avoid

exposure to market risk, or the risk that prices may change on one market before both

transactions are complete. In practical terms, this is generally possible only with

securities and financial products that can be traded electronically, and even then, when

each leg of the trade is executed the prices in the market may have moved. Missing one of

the legs of the trade (and subsequently having to trade it soon after at a lower price) is

called 'execution risk' or more specifically 'leg risk'.

Arbitrage in SLB

Reverse arbitrage involves selling a stock in the cash segment and simultaneously buying

it in futures to benefit from the price difference.Stock lending facilitates this as investors

can borrow the shares and tend them in cash segment while simultaneously creating a buy

position in the futures segment.The second leg of this transaction involves closing the

positions later by reversing transactions.

Shares such as those of the State Bank of India (SBI), Punjab National Bank, Mundra

Port and LIC Housing Finance are among the large caps trading at a considerable

premium in the cash market compared with their one-month forward prices.

The stock lending mechanism basically involves borrowing the share from others for a

specified period of time through approved intermediaries such as the clearing

corporations of stock exchanges, primarily to short them in cash.The lenders, on the other

hand, are mainly long-term investors, get lending fees in return without losing on the

benefits associated with owning the shares such as dividends or splits or bonus. Currently,

regulations allow retail or institutional investors to borrow or lend the shares listed in

futures and options segment for a maximum tenure of 12 months. The buyers are usually

institutional clients such as domestic proprietary desks which want to capitalise on

arbitrage opportunities while the long-term investors act as lenders. The segment

currently does not attract any STT charges, which is an added incentive.

Speculation

The act of trading in an asset, or conducting a financial transaction, that has a significant

risk of losing most or all of the initial outlay, in expectation of a substantial gain. With

speculation, the risk of loss is more than offset by the possibility of a huge gain;

otherwise, there would be very little motivation to speculate. While it is often confused

with gambling, the key difference is that speculation is generally tantamount to taking a

calculated risk and is not dependent on pure chance, whereas gambling depends on totally

random outcomes or chance. Speculation can in principle involve any tradable good or

financial instrument. Speculators are particularly common in the markets

for stocks, bonds, commodity futures, currencies, fine art, collectibles, real estate,

and derivatives.  The role of speculators is to absorb excess risk that other participants do

not want, and to provide liquidity in the marketplace by buying or selling when no

participants from the other categories are available. Successful speculation entails

collecting an adequate level of monetary compensation in return for providing immediate

liquidity and assuming additional risk so that, over time, the inevitable losses are offset

by larger profits.

Currency hedging

Fluctuations in the price of Indian Rupee vis-à-vis other say US dollar, Britain Pound etc.

create problem of cash flow management for a company. To eliminate such problems of

managing the cash flow, companies opt for hedging their risk through financial products like

forwards, futures and options. While the forward contracts done over the counter are mainly

provided by banks, the futures and options are the exchange products.

Currency futures were first created in 1970 but it was introduced in India by RBI and SEBI

only in may 2008. Phillip Capital India provides currency hedging through National Stock

Exchange (NSE) using the futures contract. These are used by both exporters and importers

to hedge their risk against any future currency fluctuations. Exporters hedge their risk by

selling currency futures while importers by purchasing the currency futures. The currency

pairs available on the exchange platform are USDINR, EURINR, GBPINR and JPYINR.

Currency future

Currency future is a futures contract where it is agreed upon to exchange one currency for

another at a specified date in the future at a price that is fixed on the purchase date.

Export Houses

Export companies expecting cash flow in foreign currency on future date will face a risk of

losing money if the exchange rate (Ex USDINR) goes down. These companies in order to

minimize this risk will lock in the exchange rate by selling currency futures contracts on NSE

that expires on the date of cash flow. Phillip Capital acts as a broker to provide customers

with the platform on NSE to enter into such contracts.

Apart from providing currency hedging, Phillip capital also helps export companies in the

Pre-shipment financing which is a flexible short term lending facility that assists in the

purchasing and/or manufacturing of goods prior to export to the ultimate buyer. It also helps

the export businesses in their Post-shipment financing. Post-shipment finance is a loan or

advance granted to an exporter of goods from India. This facility is available to an exporter

subsequent to the date of shipment of goods up to the date of realization of export proceeds.

Import Houses

Import companies expecting a cash outflow in foreign currency on future date will face a risk

of losing money if the exchange rate (Ex USDINR) goes up. These companies in order to

minimize this risk will lock in the exchange rate by purchasing currency futures contracts on

NSE that expires on the date of cash flow. Import houses uses the service of Phillip capital to

hedge their risk in these matters.

Apart from providing currency hedging for importers, Phillip capital also help import houses

in their non-fund based limit like letter of credit etc. Phillip capital also helps in financing for

import houses for their working capital and product manufacturing.