SUMMER

INTERNSHIP
REPORT
ON

“COMPARATIVE STUDY OF FULLERTON SECURITIES & WEALTH

ADVISORS LTD. WITH VARIOUS BROKERAGE FIRMS”
SUBMITTED BY

Navjot Singh Khurana

Univ.Roll. No. – 8100132030

Mr. Nipun Aggarwal Mr. Amardeep Mahalwar

Faculty of Research Methodology, Senior Relationship Manager - Marketing,
GJ-IMT, Mohali FULLERTON SECURITIES & WEALTH ADVISORS
LTD, Chandigarh

UNDER THE GUIDANCE OF

Approved by All India Council for Technical Education, Govt. of India.

Punjab Technical University, Jalandhar

Declaration
I hereby declare that this report on “COMPARATIVE STUDY OF BROKERAGE PLANS OF
FULLERTON SECURITIES & WEALTH ADVISORS LTD. WITH VARIOUS
BROKERAGE FIRMS” has been written and prepared by me during the “SUMMER
INTERNSHIP PROGRAM.” This project was done under the able guidance and supervision of
Prof. Nipun Aggarwal, Faculty, Gian Jyoti Institute of management and Technology and Mr.
Amardeep Mahalwar, Senior Relationship Manager, Fullerton Securities & Wealth Advisors
Ltd., Chandigarh in partial fulfillment of the requirement for the Bachelor of Business
Administration Degree course of the Gian Jyoti Institute of management and Technology (GJ-
IMT).

I also declare that this project is the result of my own effort and has not been submitted to any
other institution for the award of any Degree or Diploma.

Place: Chandigarh Date: August 7, 2010

Navjot Singh
8100132030
Acknowledgements

Sometimes words fall short to show gratitude, the same happened with me during this project.
The immense help and support received from Fullerton Securities & Wealth Advisors Ltd.
overwhelmed me during the project.

My sincere gratitude Mr. Amardeep Mahalwar, (Senior Relationship Manager, Fullerton

Securities & Wealth Advisors Ltd.) and MR. MOHIT SINGLA (Relationship Manager, Fullerton
Securities & Wealth Advisors Ltd.), for providing me with an opportunity to work with Fullerton
Securities & Wealth Advisors Ltd.

I also thank Prof. Nipun Aggarwal, (Faculty, Gian Jyoti Institute of management and
Technology) who has sincerely supported me with the valuable insights into the completion of
this project.

Last but not the least; my heart felt love for my parents, whose constant support and blessings
helped me throughout this project.
 CERTIFICATE-II

This is to certify that the study entitled “ COMPARATIVE STUDY OF BROKERAGE PLANS
OF FULLERTON SECURITIES & WEALTH ADVISORS LTD. WITH VARIOUS BROKERAGE
FIRMS” submitted by Navjot Singh, Roll no 8100132030 BBA 5th semester (batch 2008-2011)
to Punjab Technical University, Jalandhar in partial fulfillment of requirement by BBA degree
has been approved by me.

NIPUN AGGARWAL

(PROJECT GUIDE)
Table of Content

S.no Topic Page number

1. Chapter - 1

i. Introduction to project 1-6

ii. Fullerton Financial Holdings 7-14

iii. Fullerton Securities & Wealth Advisors Ltd 15-29

2. Chapter - 2

Review of Literature 30-52

3. Chapter – 3

Research Methodology 53-56

4. Chapter – 4

Findings and Analysis 57-66

5. Chapter – 5

Conclusion & Summary 67-70

List of Tables

S.no Topic Page number

1. Financial & Operating Highlight 10
2. Financial & Operating Highlight 11
3. Financial & Operating Highlight 12
4. History Of Indian Stock Market 32
5. Pre-Independence Scenario – Establishment of 33
Different Stock Exchanges
6. No. of stock exchanges 34
List of Figures

S.no Topic Page number

1. Increasing Internet Trading Volume 3
2. Milestones 9
3. Locations in World 17
4. Process of receipt 46
5. Process of delivery 46
6. Violation of Margin 49
I. Introduction to Project

Globalization has proved to be a boon for the Indian economy. After globalization there has been
a tremendous growth in the Indian economy.

Every sector of the economy has shown an outstanding performance after globalization.

The project was under taken as to study the Indian online trading. Earlier Trading was confined
in limited boundaries but now the scenario has been totally different after the entrance of online
trading. There is a cut throat competition between the broking houses. Now the brokers are more
concerned about their customers to improve their performance. The sector is undergoing

fundamental changes that have diluted its traditional role of protecting small deposits against
capital and income risk and facilitating the conversion of Savings into investment.

This project has been a great learning experience for me and at the same time it gave me enough
scope to implement my analytical ability. The project in Fullerton Securities is to figure out the
potential brokerage plans, which can undertake the various products and services offered by the
Fullerton Securities.

With the advent of the internet, investors can now enter orders directly online, or even trade with
other investors via ECN's (electronic communication networks). Most of the brokerage houses
have started providing the facilities of online trading to their customers. Today even the banks
with the view of expansion and large number of customers has started providing the online
trading terminal to the customers.

Also there have been a drastic increase in the volume of share traded on stock exchange and with
that the online trading has shown Bull Run.
As the competition from big players of online trading like Fullerton, Share khan, Kotak
Mahindra, ICICI Direct etc is rising Fullerton Securities intends to built up a loyal customer base
, the project is a step towards the same. In this era of competition it’s becoming difficult for the
organizations to acquire and retain the customers. Hence, for Fullerton Securities it is of utmost
importance to have satisfied existing customers as well as to attract the other customers.

With the help of this project Fullerton Securities & Wealth Advisors Ltd. could tap the
Customers potential in investment and which would provide them various opportunities of
increasing the customer base.

“Customer Relationship and Branch Operations” believes that “They would not remember what
you did but they will always remember what you said”.

Increasing Internet trading volume

Online trading is the service offered on the internet for purchase and sales of shares. In the real
world you place orders on your stock broker either verbally or in a written form. In online
trading you will access a stock broker’s website through your internet enabled PC and place
orders through the brokers internet based trading engine. These orders are routed to the stock
exchange without manual intervention and executed their own in the matter of a few seconds.
From the past two years the volume of the internet trading has increased largely.
 (Figure no. 1)

What is investing?
Financial planning is a systematic approach by which you get to maximize your existing
financial resources by utilizing several financial tools to achieve your financial goals.

Investing is an essential and indispensible element of financial planning. Broadly, it means

making your money grow or appreciate to fulfill long term financial goals. It is a way of saving
your money to meet your financial plans - children's education, retirement to purchasing your
own home etc. In simple words, Investing means making your idle money work for you.
There are different ways of making an investment. It includes placing money into stocks, bonds,
mutual funds, real estate or even starting an enterprise. These options are referred to as
'investment vehicles'.

Investments have a risk-reward spectrum. In accordance to your financial plans, you may invest
in instruments with compatible risk and return ratios. As a general rule of thumb, higher the risk
an investor takes on an investment, the greater potential returns he/she stands to make and vice
versa. The focus is on returns and the spectrum, in terms of risk, runs from conservative to very
aggressive. One way to measure results is by weighing expected returns against anticipated risks.

Along the risk-reward spectrum, investments can be classified into three basic categories: cash,
bonds and stocks. Each category has its own set of characteristics and plays an important role in
structuring a sound investment portfolio.

Time in the market

Investing in the stock market does not depend on timing the market, but time in the market.
Stock prices fluctuate on a day-to-day basis, sometimes drastically. That's the nature of the stock
market. While past performance does not guarantee future results, history has shown that, over a
longer term, stock market investing has been rewarding.

Long-term investing does not have to span a period of 50 years. Even five years can make a big
difference. Long-term investing in the stock market pays off quite generously too.

It is known that trying to time the market is next to impossible. Timing the market is basically
the strategy of buying and selling financial instruments (most often stocks) by attempting to
predict future market price movements. It's better to stay fully invested during all market cycles.
This has, historically, given investors the greatest average return by comparison. Hence, it's time
in the market that's important, not timing the market.

Basic Investment Principles

Establishing realistic financial goals is an essential first step towards successful investing.
Understanding investments that are best suited to help achieve your goals is equally important.
Investment principles guide you in your investment choices. Following these time-tested
investment principles enable you to build a strong foundation of financial security.

╬ Rupee-Cost Averaging

A systematic approach to long-term investing is called rupee-cost averaging. This refers to the
practice of investing the same amount of money in the same investment vehicle at regular
intervals, regardless of market conditions. If the investor takes the rupee-cost averaging
approach, the amount invested is always the same. Thus, the investor automatically buys more
shares when the price is low and fewer when the price is high.

The investor's natural instinct might be to stop investing if the price starts to drop but history
suggests that the best time to invest may be when you are getting good value. Rupee-cost
averaging can be an effective strategy with funds or stocks that can have sharp ups and downs,
because it gives more opportunities to purchase shares less expensively.

The benefit of this approach is that, over time, you may reduce the risk of having shares with the
highest cost price. Instead, as the example below demonstrates, the average cost of your shares
will be lower.

However, rupee-cost averaging does not assure a profit and it does not protect against investment
losses in declining markets.

╬ Compounding

Compounding is the ability of an asset to generate earnings, which are then reinvested in order to
generate their own earnings. In other words, compounding refers to generating earnings from
previous earnings.

Through compounding, a small amount of money over time can grow into a substantial sum.
Investments can increase in value over time - and the longer the time frame, the greater the
value. This is achieved through returns that are earned, but not spent. When the return is
reinvested, investor earns a return on the return and a return on that return and so on. Therefore it
is important to start saving early in order to benefit from the power of compounding returns.

╬ Diversification

Diversification is a strategy that can be neatly summed up by the timeless adage "Don't put all
your eggs in one basket." In other words, your funds are spread over a variety of investment
instruments. It is a risk-management technique that mixes a wide variety of investments within a
portfolio. The rationale behind this technique contends that a portfolio of different kinds of
investments will, on average, yield higher returns and pose a lower risk than any individual
investment found within the portfolio.

For example, diversification could mean that you own several stocks, but they all come from
various types of industries or different parts of the world. By having a variety of different stocks,
your funds are more protected. If a certain company is badly hit, you will have other stocks that
may be able to "take up the slack."
╬ Asset Allocation

Asset allocation involves dividing an investment portfolio among different asset categories, such
as stocks, bonds, and cash. These asset categories have different risk-return characteristics, so if
you have them in your portfolio, their different patterns of behavior offset each other. For
instance, while one asset category increases in value, another may be decreasing or not
increasing as much.

Asset allocation aims to balance risk and reward by apportioning a portfolio's assets according to
your investment objectives, your risk tolerance and your investment horizon.

Asset allocation is generally the most important factor in determining the return on your
investments. In fact, according to many researches and studies, asset allocation determines
approximately 90% of the return. The remaining 10% of the return is determined by which
particular investments (stock, bond, mutual fund, etc.) you select and when you decide to buy
them.

╬ Rebalancing

Rebalancing your mutual fund portfolio on a regular basis maintains the desired asset allocation
in your investment strategy. Basically, rebalancing is bringing portfolio back to original asset
allocation mix. This is necessary because over time some of the investments may become out of
alignment with the investment goals, as investments don't all move the same way at the same
time. Some will grow faster than others. By rebalancing your portfolio, you will ensure that you
stick to original plans and have the kind of discipline that leads to long-term success.

For example, let's say it is determined that stock investments should represent 60% of portfolio.
But after a recent stock market increase, stock investments represent 80% of portfolio. You will
need to either sell some of stock investments or purchase investments from an under-weighted
asset category in order to reestablish original asset allocation mix.

Rebalancing can be based either on the calendar or on the investments. Many financial experts
recommend that investors rebalance their portfolios on a regular time interval, such as every six
or twelve months. The advantage of this method is that the calendar is a reminder of when
investor should consider rebalancing.

Others recommend rebalancing only when the relative weight of an asset class increases or
decreases more than a certain percentage that investor has identified in advance. The advantage
of this method is that investments will tell you when to rebalance.
II. Fullerton Financial Hodings Pte. Ltd.
Fullerton Financial Holdings Pte. Ltd. already has a presence in India through Fullerton India
Credit Company Limited, targeting the mass market segment. Fullerton Securities & Wealth
Advisors Limited will target different segments i.e mass affluent and affluent customers across
Tier I and Tier II cities in India.

Fullerton Financial Holdings Pte. Ltd. invests in financial institutions in emerging markets,
bringing an operational perspective to all investment decisions. As on 31st December, 2007, the
total assets of Fullerton Financial Holdings Pte. Ltd. stood at $59.7 billion and its portfolio
comprised investments in 15 different financial institutions. Fullerton Financial Holdings Pte.
Ltd. supervises and influences its banks to achieve the right risk-reward balance. It seeks to
create shareholder value by differentiating through great people, disciplined development and
execution of unique business models.

Primarily, it focuses on both Business banking and Consumer banking. Within Business banking,
Fullerton Financial Holdings Pte. Ltd. focuses on the Commercial, SME and Self-employed
mass market segments. On the other hand, it focuses on the Mass affluent and Mass salaried
segments within Consumer banking.

Fullerton Financial Holdings Pte. Ltd. is a wholly owned subsidiary of Temasek Holdings, an
Asia investment house, headquartered in Singapore, focused on creating and maximizing long-
term shareholder value as an active investor and shareholder of successful enterprises.

Temasek Holdings is an Asia investment house, managing a portfolio of over S$185billion or

US$134 billion. Guided by an independent board, they operate autonomously on commercial
principles to maximize long term shareholder returns.
 Rated AAA / Aaa by Standard & Poor’s and Moody’s, respectively
 Diversified portfolio in a wide range of industries
 Telecommunications & Media : SingTel, Bharti Airtel, Global Crossing
 Financial Services : DBS, Standard Chartered Bank, Merrill Lynch, Barclays
 Real Estate : Capital Land, Mapletree
 Transportation & Logistics – Singapore Airlines, Neptune Orient Lines, PSA
 Energy & Resources – Singapore Power, Senoko Power, Powerseraya
 Infrastructure, Industrial & Engineering – Keppel Corporation, Sembcorp
 Technology – Chartered Seminconductor, StatsChipPAC
 Respectable returns to shareholder over last 34 years
 Total shareholder returns of more than 18% per annum since inception 34yrs ago
 100% owned by the Minister of Finance of Singapore.
Key Milestones
۩ 16 financial institutes in 9 countries.
۩ Total headcount in FFH now 104, and close to 65,000 employees in our investee
institutions
DANAMON BANK
Established in 1956, PT Bank Danamon Indonesia Tbk (Danamon) is the second largest private
national bank and the fifth largest commercial bank in Indonesia, with a 5% share of the
domestic system loans and deposits.

Danamon has one of the widest geographic distribution networks of all Indonesian banks with
1,483 operational branch offices, and provides its customers with access to over 14,000 ATMs
across all 33 provinces of Indonesia. It is well supported by more than 25,359 employees.
Danamon is recognized as an innovative community bank to the mass market through its
Danamon Simpan Pinjam, as Indonesia’s leading SME bank and as a bank that also serves
consumer and large multinational and Indonesian corporate customers across Indonesia.

Danamon is the majority owner of PT Adira Finance, Indonesia’s leading auto finance company.
With over 357 branches and 16,258 employees, Adira and Danamon work closely to ensure the
needs of the mass market customers in Indonesia are fulfilled.

www.danamon.co.id

Financial & Operating Highlight

Fullerton Financial Holdings acquired a majority stake in Danamon in June 2003.

Year ending 31 December (IDR 2003 2005 2007 2008

bn)
Number of Branches (including 477 1,327 1,426 1,840
Adira)
Number of Employees 13,225 28,829 35,242 41,617
(including Adira)
Total Assets 52,682 67,803 89,410 107,268
Shareholders Equity 6,822 8,589 10,833 10,579
Net Income 948 2,003 2,117 1,530
Normalized ROE % 9.7 15.2 22.9 22.3
NIB BANK
NIB Bank has had an outstanding growth pattern since its creation over 4 years ago. It started as
NDLC-IFIC Bank Ltd, commencing operations in October 2003 when the assets and liabilities of
the former National Development Leasing Corporation (NDLC) and Pakistan operations of IFIC
were amalgamated with and into NIB, with a paid up capital of Rs.1.2bn. In April 2004 the
Pakistan operations of Credit Agricore Indosuez were also amalgamated with NIB. In early 2005
Fullerton Financial acquired a 25% shareholding in NIB Bank. This was further enhanced when
NIB's paid up capital was increased to Rs.3.4bn in June '05.

NIB Bank has accelerated organically from 2 branches in 2003 to 45 in the 4th quarter of 2007
and assets of Rs.9bn in December 2003. Its vision is to rank amongst the top 5 banks in the
country. The acquisition of PICIC with its subsidiaries and subsequent merger with PICIC &
PCBL on 31st December '07 was part of NIB's strategy to achieve this objective and establish
itself as a leading bank in Pakistan. This merger resulted in a vastly expanded network of 240
branches, with total assets of over Rs.180 billion. It now ranks number 7 amongst commercial
banks in term of distribution network. NIB's paid up capital of Rs.28.4 billion is the second
highest of all banks in Pakistan. The PICIC acquisition included its subsidiary PICIC Asset
Management Company and a general insurance associate. Fullerton Financial Holdings remains
the largest single investor in NIB Bank. PACRA has recently upgraded NIB rating to AA- (long
term) and A1+ (short term), depicting its strong credit worthiness.

NIB aspires to become a partner in prosperity for all its stakeholders and believes it will add
significant value to the segments its serves. It is committed to further expanding its franchise in
Pakistan and serving the under banked sectors.

http://www.nibpk.com

Financial & Operating Highlights

Fullerton Financial Holdings first invested in NIB in February 2005. Financial results for y/e
December 2007 include the merger with PICIC and PCBL.

Year ending 31 December (Rupees millions) 2005 2006 2007

No. of Branches 27 41 240
Number of Employees 786 1632 5580
Total Assets 32,019 46,424 176,653
Shareholder Equity 4,213 4,327 36,592
ALLIANCE BANK
Alliance Financial Group is a dynamic, integrated financial services group offering end-to-end
financing solutions through its consumer banking, commercial banking, wholesale banking,
Islamic banking, investment banking and stock broking businesses as well as unit trust and asset
management by providing products and services that are suited for every customer at every stage
of their life. 

The Group has five decades of proud history in contributing to the financial community in
Malaysia with its innovative and entrepreneurial business spirit. Today, the Group is involved in
the provision of financial services through its principal subsidiaries, Alliance Bank Malaysia
Berhad, Alliance Investment Bank Berhad, Alliance Investment Management Berhad and
Alliance Islamic Bank Berhad. It provides easy access throughout the country by serving its
broad base of customers via multi-pronged delivery channels which include retail branches,
Alliance Personal Concept Stores, Alliance Rakan branches, Privilege Banking Centres, Hire
Purchase hubs, Business Centres, Investment Bank branches, direct marketing offices and unit
trust agent offices located nationwide in a mix of rural and urban areas.

The Group's aspiration is to be Malaysia's premier integrated financial services group delivering
the best customer experience and creating long-term shareholder value. Strategic alliances,
enhanced group synergy, excellent technology and human capital will be the key to creating
long-term value for all stakeholders.

www.alliancegroup.com.my

Financial & Operating Highlights

Fullerton Financial Holdings acquired a minority stake in Alliance Financial Group in March
2005. Since then, the financial performance of the group has grown from strength to strength

Year ending 31 March 2006 2007 2008

Number of Branches 77 81 92
Total Assets (RM billions) 23,582 26,390 27,682
Shareholders Equity (RM billions) 1,742 1,984 2,594
Net Income (RM millions) (201) 107 380
ROE (%) (10.9) 5.8 16.8
FULLERTON INDIA
Fullerton India undertook an unique mission for itself in the Indian financial industry, to serve
the large underserved mass market in India. It aimed to foster sustainable development of the
people who constituted the target mass market in India, comprising micro-entrepreneurs, self-
employed and the salaried. It is believed that this segment forms the backbone of the Indian
economy and can contribute significantly to the growth of the economy

The company tries to recognize the potential of every small enterprise and small salary earner
and help them grow and make their growth sustainable. Inspired by our vision "We care and
make a difference to the lives and future of our customers", Fullerton India believes, that it can
make a difference and have a positive impact on the future of people in this segment. Fullerton
India's Parivaar branches target the salaried mass market and Vyapaar branches target the
commercial mass market.

These segments in the urban mass market were hitherto grossly under-served. No organized
financial institution catered to their financial requirements. They had little or no access to
banking services and most of them had not dealt with a financial institution before. Fullerton
India found this market to have a large untapped potential and set up several pilot branches to
test its uniquely designed business model.

Fullerton India's business model is community oriented, branch centric and endeavors to build
enduring relationships with customers. Fullerton India successfully established over 775
branches across the country with over 14000 of its own employees. It has already achieved a
sustainable customer acquisition rate of 50,000 customers a month.

By the end of 2008 Fullerton India's plans are to grow to a network of over 850 branches and
reach an annual acquisition rate of 1 million customers. Fullerton India is also testing a viable
business model for the rural market which has the potential to grow its operations three-fold.

Fullerton India's aim is to become the preferred financial partner to its customers in the mass
market and already markets loans and insurance products to them. Fullerton India's tag line in
Hindi is "Humse kariye dil ki baat" which means "come express your aspirations to us and we
will help you fulfill them."

www.fullertonindia.com
DUNIA FINANCE LLC
Building on Fullerton Financial Holdings' unique business approach and its desire to cater to
each customer's unique needs, an opportunity was recognized in the United Arab Emirates'
(UAE) financial services sector. UAE ranks amongst the best performing economies of the
world, enjoying rapid economic expansion underpinned by favorable macro-economic
fundamentals arising from strong GDP and population growth. With the emergence of the UAE
as a major regional hub with influence over a catchment of over 1.5 billion people in the
neighboring countries, this growing population is very diverse, and hence the financial needs
tend to be very specific for different segments. Based on a detailed assessment of the market,
FFH found that despite the existence of 46 banks in the UAE, large segments of the population
still remain un–served or under–served.

Dunia means the world in many languages - Arabic, Urdu, Hindi, Malaysian, Bengali, Turkish,
Indonesian, Tagalog, Hausa, Swahili, Punjabi and Pashto.

We are named Dunia because we want to mean 'the world' to someone. We believe we can
change the way people see life, and put a smile on someone's face.

Recognizing the need for a financial institution which truly cares about its customers, and is
available to serve all communities, FFH entered into a strategic partnership with Mubadala
Investment Company PJSC, Waha Capital PJSC (formerly known as Oasis International Leasing
Company PJSC), and A.A.Al Moosa Enterprises LLC, with 40% ownership by FFH. "Dunia
Finance LLC" or "Dunia", as it is more commonly known, was created.

This is a significant event as it sees two of the largest government owned investment companies,
Temasek of Singapore and Mubadala of Abu Dhabi come together as partners in their maiden
financial services venture in the UAE.

Dunia's strategy is to address the current gap that exists in terms of coverage and penetration of
financial products and services, by building a customer–centric, relationship–based business
model focused on serving the large un–served and under–served customer segments, in–line with
the unique value proposition for each customer segment which was identified through market’s
research. Dunia's aspiration is to be a complete financial solutions provider for its target
customer segments across the UAE. Dunia will cater to the salaried mass market, mass affluent,
affluent, self employed mass market and the SME customer segments.
III. Fullerton Securities & Weakth Advisors Ltd.
The Indian economy is the third largest economy in the world today in terms of purchasing
power and is expected to touch new heights in coming years. As predicted by Goldman Sachs,
the Global Investment Bank, by 2035 India would be the third largest economy of the world just
after US and China. It will grow to 60% of the size of the US economy.

With positive indicators such as a stable 8-9% annual growth, rising foreign exchange reserves, a
booming capital market and rapidly expanding FDI inflows, India has emerged as the second
fastest growing major economy in the world.

The number of Indian dollar millionaires jumped 22.7 per cent last year to 123,000, which is the
highest percentage growth in the world for the year, followed by China where the number of
high rollers jumped 20.3 per cent to 415,000, said the 12th annual World Wealth Report which
was released on 25th June, 2008, prepared by United States investment bank Merrill Lynch and
information technology group Capgemini. Within this growing number of USD millionaires &
affluent customers there are a number of banks and Wealth Management entities that are focused
on this High Net Worth segment. However in the middle income segment customer needs are
given lower priority and product-centricity prevails.

According to an estimate by a leading agency, one of the fastest growing segments in India are
households in the mass affluent segment. There are upwards of 22 million households in this
segment and this category is expected to grow at a CAGR of 20% for the next 5 years. The
revenue pool of this segment is expected to cross USD 8.9 billion by 2011 as per the agency's
estimates.

This large rapidly growing segment requires execution excellence and differentiated delivery.
Fullerton Securities' strategy is to address the current gap that exists in terms of coverage and
penetration of financial products and services, by building a customer–centric, relationship–
based business model focused on serving the large under–served customer segments, in–line
with the unique value proposition for the Mass Affluent and Lower Affluent customer segment
which was identified through market research.

FFH's product centric approach and India's regulatory desire to ensure product suitability and
appropriateness is the Fullerton Securities product model.

Fullerton Securities & Wealth Advisors Limited is a company registered under Indian
Company Law, incorporated on 8th February 2008 and was launched on 6th April, 2009 with 10
Financial Centre across 9 cities in India. It offers world-class financial planning and a wide range
of wealth management products to mass affluent and affluent customer segments. Fullerton
Securities & Wealth Advisors Limited provides a complete range of financial products and
services that include equity broking (internet based online trading as well as offline trading),
financial planning, insurance, investment products, equity research and more.

Our Shareholders

Fullerton Financial Holdings Pte. Ltd. already has a presence in India through Fullerton India
Credit Company Limited, targeting the mass market segment. Fullerton Securities & Wealth
Advisors Limited will target different segments i.e mass affluent and affluent customers across
Tier I and Tier II cities in India.

Fullerton Securities & Wealth Advisors Limited is a part of CEEMEA organisation within
Fullerton Financial Holdings Pte. Ltd. The core of Fullerton Securities offering is Financial
Planning by actively listening. Fullerton Securities aims to be a relationship focused organization
which understands customers' needs and provides solutions and not just products by listening to
its customers.

Fullerton Securities plans to offer maximum value and an integrated offering through:

 A need based & relationship centric approach

 Online view of entire relationship through performance measurement tools
 Dedicated touch points – Call Centre, Website & Financial Centers
 Support team of RM's and Product Sales Specialists
 Superior advisory and execution capability
 Offering a full range of 3rd party & proprietary financial products
 Certified and trained RMs, to offer competent, problem free and timely service with
empathy & care, while ensuring suitability to customer needs at all times.

The product range includes:

 Financial Planning
 Equity Account
 F&O
 Investment Products - Mutual Funds, GOI Bonds & Company Fixed Deposits
 Life Insurance
 Health Insurance
 Vehicle Insurance
 Home Insurance
 Travel Insurance
 Equity Research
Corporate Governance
Corporate governance is the system by which business corporations are directed and controlled.
The corporate governance structure specifies the distribution of rights and responsibilities among
different participants in the corporation, such as, the board, managers, shareholders and other
stakeholders, and spells out the rules and procedures for making decisions on corporate affairs.
By doing this, it also provides the structure through which the company objectives are set and the
means of attaining those objectives and monitoring performance". (OECD definition)

Corporate governance at Fullerton Securities

At Fullerton Securities, we have chosen a framework, which incorporates guidelines

recommended by leading international and regional regulators as well as the practices adopted by
leading financial institutions. This comprises of a two-tier system of committees comprising of
members drawn from Executive Management for the first tier and the Board of Directors for the
second.

This framework ensures that whilst accountability for decision-making at an operational level
remains with functional specialists, Executive Management will engage in cross functional
sharing of knowledge and expertise via these committees in a structured manner. This helps
ensure that synergies are identified and efficiencies are optimised when decisions impacting the
organisation are taken. The Executive Management Committees are:

o Product Approval Committee

o Business Risk & Compliance Committee
o Executive Operating Committee
o IT Steering Committee
o Human Resources Committee
o Vendor Management Committee
Board Committees provide strategic oversight and guiding principles for the company with
respect to key business matters. The deliberations and recommendations by the management
team are carefully considered as the Directors draw on their collective experience and expertise
to discuss and opine on key policies and critical corporate decisions. The Board Committees are:

o Board of Directors
o Audit Committee
o Risk Management Committee
o Employee Remuneration Committee

Fullerton Securities Board of directors

╬ Francis Rozario, Chairman

Francis Rozario is currently the Executive Director and CEO of Fullerton Financial
Holdings Pte Ltd. Prior to his current appointment, Mr Rozario was the President Director
of Bank Danamon...

╬ Rajeev Kakar, Director

Rajeev Kakar is the Executive Vice President & Regional CEO, for the Central Europe,
Middle East & Africa (CEEMEA) region for Fullerton Financial Holding, Executive
Director & CEO, for Dunia Finance LLC and Global Management Board Member, for
Fullerton Financial Holdings…

╬ Pallav Sinha, MD & Chief Executive Officer

Pallav Sinha is currently the Managing Director and Chief Executive for Fullerton
Securities & Wealth Advisors Limited, India. He has over 20 years of professional working
experience in the banking...

╬ Tej Pal Singh Hora, Director

Tejpal Singh Hora is currently the group head for Risk Management in Fullerton Financial
Holdings and has more than 41 years of banking experience, having worked with Citibank
for 35 years before joining Fullerton...

╬ Sng Seow Wah, Director

Mr Sng is currently Executive Vice President and Head of Human Resources, Special
Projects & Corporate Communications at Fullerton Financial Holdings. Mr Sng is a
seasoned banker with more than 24 years...
Why choose Fullerton
Our broking services are designed keeping the requirements of investors in mind. With us you
will find unmatched features to make your experience complete:

1. Value pricing
2. Research
3. Planning Towards Customers’ Goals
4. Support
5. Easy-to-use tools
6. Parentage

Simply open a Demat account & Trading account with us and experience the convenience
yourself. We provide you with demo of our trading interfaces for better understanding.
Customers need not trade regularly, however we ensure that you make the most of their
investments at every single opportunity with us!

Our philosophy: Baat faayde ki

It is one thing to ask them what they need out of their wealth and get them talking. It is quite
another to really listen to them, to create new possibilities and truly unfold and expand their
horizons. At Fullerton Securities, this very act of listening actively is at the root of who we are
and the seed of the outstanding broking services we offer them.

The Fullerton Securities Broking Advantage

Tired of being on the listening side with your financial advisor at all times? Not getting your
broker to listen to you – your side of the story, your needs and financial requirements?

Take a look at Fullerton Securities. Whether you need a little support from your broker or a lot,
we at Fullerton Securities listen to you and help you gain by delivering an extensive array of
state-of-the-art tools, straightforward pricing and outstanding personal service.

With us, you can enjoy a personal relationship with investment professionals. We see investing
from your perspective and make recommendations based on actually listening to you and
understanding your needs.

It's not just about the lowest-priced trade or the latest hot stock tip. It's about getting more for
your money in terms of a long-term, consistent performance.

Fullerton offers you quality personal service, remarkable investing and trading insights at a great
price.
Fullerton has solutions for the full spectrum of investors – for those just starting out to
sophisticated active investors to clients seeking investment advice.

While other brokerage houses offer you a plain vanilla, one size fits all, 'trading' or 'broking'
account, we offer you Fullerton Financial Broking Advantage tailored to your requirements.

Fullerton Freedom Account

Investments are no more confusing! Presenting, Fullerton Freedom. An account that brings a
world of customised investment offerings with a reasonable price tag of Rs. 1,995/-*

Privileges

 Complimentary Broking & Demat account Maximum Complimentary Turnover :-

Rs. 5 Lakhs of delivery turnover OR Rs. 50 Lakhs of Intraday/Futures/Options
 Special Reports (Sector/Economy/Event) every Quarter
 SMS Alerts
 Choice of Internet based online trading terminals
 Intraday Market View
 Access to browser based terminal
 Well researched investment ideas
 Java Applet with streaming quotes

Other Product Options

Benefit from Advantage Accounts

Fullerton Advantage

Plan for tomorrow! Live for today!

What would you say if there was a way that you could plan for your future, while enjoying
financial and lifestyle benefits worth thousands today? What if this way also meant that you
could receive complimentary insurance coverage? What if this way also meant that you could be
sure of never missing out on an investment opportunity again?

Introducing, the Fullerton Advantage Account. We’re hoping you too will say, “What a great
way to plan for tomorrow and live for today!"

At Fullerton, we believe in actively listening to you and offering you a no obligation Financial
Plan to help you meet all your financial goals. Our unique Fullerton Advantage Account saves
you time, through a one-time documentation process, so you are ready for any financial
opportunity that arises. What's more, your relationship with us starts on a highly rewarding note.

For the first time ever, you get complimentary insurance coverage up to Rs. 3 lacs, automatically
with the Fullerton Advantage Account. This account also brings you great savings across your
favorite brands in apparel, electronics, health and entertainment! So that while you plan for the
future, you’re current desires are not ignored.

What's more, you also get ready-to-use investment, insurance & broking accounts with great
savings on account opening fees (savings of up to Rs. 1100 per year!). Take a look at the 4
variants of the Fullerton Advantage Account and simply choose the one that matches your needs
best.

Depository Charges
The Competitors

The existing major players in the stock broking industry besides Fullerton Securities & Wealth
Advisors Ltd. are:

1. ICICI Direct
2. India Bulls
3. Share Khan
4. Fullerton Securities
5. India Infoline
6. Kotak
7. Reliance money

ICICI DIRECT
ICICI Direct (or ICICIDirect.com) is stock trading company of ICICI Bank. Along with stock
trading and trading in derivatives in BSE and NSE, it also provides facility to invest in IPOs,
Mutual Funds and Bonds. Trading is available in BSE and NSE.

Trade In: BSE and NSE

Type of Account

ICICI Direct offers 3 different online trading platforms to its customers:

1. Share Trading Account

Share Trading Account by ICICI Direct is primarily for buying and selling stocks in NSE and
BSE. This account allows Cash Trading, Margin Trading, Margin PLUS Trading, Spot Trading,
Buy Today Sell Tomorrow and Call and Trade on phone.

ICICIDirect.com website is the primary trading platform for this trading account. They also
provide installable application terminal based application for high volume trader.

2. Wise Investment Account

Along with stock trading and IPO investing in BSE and NSE, Wise Investment account also
provide options to invest in Mutual Funds and Bonds online.

Online Mutual funds investment allows investor to invest on-line in around 19 Mutual Fund
companies. ICICI Direct offers various options while investing in Mutual Funds like Purchase
Mutual Fund, Redemption and switch between different schemes, Systematic Investment plans,
Systematic withdrawal plan and transferring existing Mutual Funds in to electronic mode. This
account also provides facility to invest in Government of India Bonds and ICICI Bank Tax
Saving Bonds. ICICIDirect.com website is the primary tool to invest in Mutual Funds, IPOs,
Bonds and stock trading.

3. Active Trader Account

Active Trader account gives more personalized investment options to the investors. It allows
investor to use online and offline stock trading. It also provides with independent market
expertise and support through a dedicated Relationship Manager from ICICI. Active Trader also
provides commodity trading.

Brokerage and fees

Account opening fees: Rs 750/- (One time non-refundable)

Brokerage: ICICIDirect.com brokerage varies on volume of trade and inclusive of transaction

charges, service taxes and courier charges for contract notes. It ranges from 0.1% to 0.15% for
margin trades, 0.2% to 0.425% for squared off trades and 0.4% to 0.85% on delivery based
trades.

Advantages of ICICI Direct

 3-in-1 account integrates your banking, broking and demat accounts. All accounts are
from ICICI and very well integrated. This feature makes ICICI the most interesting
player in online trading facility. There is absolutely no manual interfere require. This is
truly online trading environment.
 Unlike most of the online trading companies in India which require transferring money to
the broker's pool or towards deposits, at ICICI Direct you can manage your own demat
and bank accounts through ICICIdirect.com. Money from selling stock is available in
ICICI bank account as soon as the ICICI Direct receives it.
 Investment online in IPOs, Mutual Funds, GOI Bonds, and Postal Savings Schemes all
from one website. General Insurance is also available from ICICI Lombard.
 Trading is available in both BSE and NSE.

Disadvantages of ICICI Direct

 Getting access to ICICIDirect.com website during market session can be frustrating.

 ICICI Direct brokerage is high and not negotiable.
 Not all stocks are available under Margin Plus.
INDIABULLS
Indiabulls is India's leading Financial Services and Real Estate Company having presence over
414 locations in more than 124 cities. Indiabulls Financial Services Ltd is listed on the National
Stock Exchange, Bombay Stock Exchange, Luxembourg Stock Exchange and London Stock
Exchange.

Type of Account

Indiabulls Equity Trading Account

Indiabulls Equity Trading Account is standard Online trading account from India bulls and along
with online trading it also provides priority telephone access that gives you direct access to your
Relationship Manager and full access to 'Indiabulls Equity Analysis'.

Application Trading Terminal (Need Installation)

Power Indiabulls

Power Indiabulls trading terminal is the most advanced new generation trading platform with
great speed. This trading terminal is built in JAVA.

Power Indiabulls is extremely reach in features including Live Streaming Quotes, Fast Order
Entry and execution, Tic by Tic Live Charts, Technical Analysis, Live News and Alerts,
Extensive Reports for Real-time Accounting.

Brokerage and fees:

Account opening fees: Rs 1200/- (One time non-refundable) as below:

 250/- Equity Trading Account opening charge

 200/- Demat Account opening charge
 750/- Software changes

Advantages of Indiabulls Equity Trading Account

 Brokerage is less compare to other online trading companies.

 Provide trading terminal 'power bulls', a java based software. It's very fast in terms of
speed and execution.
SHAREKHAN
Sharekhan is online stock trading company of SSKI Group, provider of India-based investment
banking and corporate finance service. ShareKhan is one of the largest stock broking houses in
the country. S.S. Kantilal Ishwarlal Securities Limited (SSKI) has been among India’s leading
broking houses for more than a century.

Sharekhan's equity related services include trade execution on BSE, NSE, Derivatives,
commodities, depository services, online trading and investment advice. Trading is available in
BSE and NSE. Along with Sharekhan.com website, ShareKhan has around 510 offices (share
shops) in 170 cities around the country.

Share khan has one of the best state of art web portal providing fundamental and statistical
information across equity, mutual funds and IPOs. You can surf across 5,500 companies for in-
depth information, details about more than 1,500 mutual fund schemes and IPO data. You can
also access other market related details such as board meetings, result announcements, FII
transactions, buying/selling by mutual funds and much more.

Trade In: BSE and NSE

Type of Account

1. ShareKhan Classic account

Allow investor to buy and sell stocks online along with the following features like multiple
watch lists, Integrated Banking, demat and digital contracts, Real-time portfolio tracking with
price alerts and Instant credit & transfer.

1. Online trading account for investing in Equities and Derivatives

2. Free trading through Phone (Dial-n-Trade)
(a) Two dedicated numbers for placing your orders with your cell phone or landline.
(b) Automatic funds transfer with phone banking (for Citibank and HDFC bank
customers)
(c) Simple and Secure Interactive Voice Response based system for authentication
(d) get the trusted, professional advice of our tele-brokers
(e) After hours order placement facility between 8.00 am and 9.30 am
3. Integration of: Online trading + Bank + Demat account
4. Instant cash transfer facility against purchase & sale of shares
5. IPO investments
6. Instant order and trade confirmations by e-mail
7. Single screen interface for cash and derivatives
2. ShareKhan Speed Trade account

This accounts for active traders who trade frequently during the day's trading session. Following
are few popular features of Speed Trade account.

1. Single screen interface for cash and derivatives

2. Real-time streaming quotes with Instant order Execution & Confirmation
3. Hot keys similar to a traditional broker terminal
4. Alerts and reminders
5. Back-up facility to place trades on Direct Phone lines

Brokerage:

Some stock trading companies charge direct percentage while others charge a fixed amount per
Rs 100. Sharekhan charges 0.5% for inter day shares and 0.1% for intra day or you could say
Sharekhan charges 50 paise per Rs 100.

Advantages of Sharekhan:

 Online trading is very user friendly and one doesn't need any software to access.
 They provide good quality of services like daily SMS alerts, mail alerts, stock
recommendations etc.
 Sharekhan has ability to transfer funds from most banks. Unlike ICICI Direct, HDFC
Sec, etc., so investor not really needs to open an account with a particular bank as it can
establish link with most modern banks.

Disadvantages of ShareKhan

They charge minimum brokerage of 10 paisa per stock would not let you trade stocks below
20Rs. (If you trade, you will loose majority of your money in brokerage).

 Lots of hidden rules and charges.

 They do not provide facility to book limit order trades during after-hours.
 Classic account holders cannot trade commodities.
 Cannot purchase mutual funds online.
RELIGARE SECURITIES LTD.
Religare Securities Limited (RSL) is the wholly owned subsidiary of REL and a securities firm
in India. Religare Securities Ltd. (“RSL”) is a leading equity and securities firm in India. The
company currently handles sizeable volumes traded on NSE and in the realm of online trading
and investments it currently holds a reasonable share of the market. The major activities and
offerings of the company today are Equity broking, Depository Participant Services, Portfolio
Management Services, Institutional Brokerage & Research, Investment Banking and Corporate
Finance.

Type of Account
1. R-ACE (Basic)

It's the basic online trading account provided by Fullerton. Investor can trade and access their
account information online and over the phone as well. This account comes with a browser based
online trading platform and no additional software installation needed.

This account also provides Lifetime free DP account with no annual maintenance charges.

2. R-ACE Lite (Advanced)

It's the advanced account option for the investor with Fullerton. This trading account provides
the entire feature of R-ACE (Basic) account. In addition it also provides real-time streaming
stock quotes and alerts.

This trading platform is also browser based and no software installation is needed.

3. R-ACE Pro (Professional)

As the name indicates this account is for high volume traders. Along with the features from
above 2 accounts, this account also comes with a Trading Terminal, software which needs to
install on your computer. This terminal directly connects the investor to stock market and having
all industry standard Treading terminal features including technical charting (intra-day and
EOD), multiple watch list, advanced hot-key functions for faster trading, derivative chains,
futures & options calculator. As in basic and advance account, trading is available online through
internet and offline though phone.
Brokerage and Account opening fees:

Religare offers three kinds of accounts as above. Below are detail about fees and activation
charges for each account:

R-ACE Account activation charges Rs.299/-.

R-ACE Lite Account activation charges Rs.499/-..

R-ACE Pro Account activation charges Rs.999/-.

Brokerage at Religare

On the basis of volume and frequency of trading, Fullerton provide different options for
brokerages. On the broader way they divided into three categories:

 Intraday brokerage varies from 0.3% to 0.5%.

 Delivery brokerage varies from 0.30% to 0.50%

Advantages of Religare

 Religare gives interest on unutilized cash when investor is waiting to make next trade or
online investment.
 Religare Allow their investor to trade without having to worry about cash margin.
Investor can get exposure (on cash segment) as high as 20 times for intraday trades.
 They provide intraday reports and historical charting.
 Lifetime free DP account.
 Varity of fee structure to fulfill need of different type of investors.
Investments & Stock Broking

The primary thing before investing in stock markets is to have an understanding of how the stock
markets operate. Companies need capital for various purposes like expansion, research and
development etc. Many companies choose to raise funds by offering the company's shares to the
public. When investors own the shares of a company they become part owners of that company.
The company gets listed on a stock exchange(s) after which its shares start getting traded. Stock
exchange is a marketplace where sale and purchase of shares take place.

In

order to buy or sell

shares, investors
need to open a
trading account
with a stock
broker. Investors
give
instructions to their broker to buy or sell shares on treir behalf. Trading can be done through
telephone, internet, or in person. The price at which trade takes place is determined by the
market forces i.e. demand and supply of that particular share in the market. Investors hope to
earn profits by buying shares at a low price and selling them at a higher price. Some people
invest into the stock market for a long period time (3-5 years or more) and some people invest
with an objective of earning short term profits (less than a year). The following terms are used
frequently in stock markets.

 About Stock Markets: A marketplace where investors gather to buy and sell securities
 Trading Terminology: Frequently used terms in stock market
 Capital Gains/Taxes: Gains arising out of sale of capital assets like shares, property etc.
 Securities Transaction Tax: An easy-to-administer tax that helps in eliminating tax
avoidance on sale of securities
 Bonds: Debt securities issued for a period longer than one year.
Stock Market of India
Stock markets refer to a market place where investors can buy and sell stocks. The price at which
each buying and selling transaction takes is determined by the market forces (i.e. demand and
supply for a particular stock).

Let us take an example for a better understanding of how market forces determine stock prices.
ABC Co. Ltd. enjoys high investor confidence and there is an anticipation of an upward
movement in its stock price. More and more people would want to buy this stock (i.e. high
demand) and very few people will want to sell this stock at current market price (i.e. less supply).
Therefore, buyers will have to bid a higher price for this stock to match the ask price from the
seller which will increase the stock price of ABC Co. Ltd. On the contrary, if there are more
sellers than buyers (i.e. high supply and low demand) for the stock of ABC Co. Ltd. in the
market, its price will fall down.

In earlier times, buyers and sellers used to assemble at stock exchanges to make a transaction but
now with the dawn of IT, most of the operations are done electronically and the stock markets
have become almost paperless. Now investors’ don’t have to gather at the Exchanges, and can
trade freely from their home or office over the phone or through Internet.

History of the Indian Stock Market - The Origin

One of the oldest stock markets in Asia, the Indian Stock Markets has a 200 years old history.
18th Century East India Company was the dominant institution and by end of the
century, business in its loan securities gained full momentum
1830's Business on corporate stocks and shares in Bank and Cotton presses
started in Bombay. Trading list by the end of 1839 got broader
1840's Recognition from banks and merchants to about half a dozen brokers
1850's Rapid development of commercial enterprise saw brokerage business
attracting more people into the business
1860's The number of brokers increased to 60
1860-61 The American Civil War broke out which caused a stoppage of cotton
 supply from United States of America; marking the beginning of the
"Share Mania" in India
1862-63 The number of brokers increased to about 200 to 250
1865 A disastrous slump began at the end of the American Civil War (as an
example, Bank of Bombay Share which had touched Rs. 2850 could only
be sold at Rs. 87)

Pre-Independance Scenario - Establishment of Different Stock Exchanges

1874 With the rapidly developing share trading business, brokers used to gather at a
street (now well known as "Dalal Street") for the purpose of transacting business.
1875 "The Native Share and Stock Brokers' Association" (also known as "The Bombay
Stock Exchange") was established in Bombay
1880's Development of cotton mills industry and set up of many others
1894 Establishment of "The Ahmadabad Share and Stock Brokers' Association"
1880 - 90's Sharp increase in share prices of jute industries in 1870's was followed by a boom
in tea stocks and coal
1908 "The Calcutta Stock Exchange Association" was formed
1920 Madras witnessed boom and business at "The Madras Stock Exchange" was
transacted with 100 brokers.
1923 When recession followed, number of brokers came down to 3 and the Exchange
was closed down
1934 Establishment of the Lahore Stock Exchange
1936 Merger of the Lahore Stock Exchange with the Punjab Stock Exchange
1937 Re-organization and set up of the Madras Stock Exchange Limited (Pvt.) Limited
led by improvement in stock market activities in South India with establishment
of new textile mills and plantation companies
1940 Uttar Pradesh Stock Exchange Limited and Nagpur Stock Exchange Limited was
established
1944 Establishment of "The Hyderabad Stock Exchange Limited"
1947 "Delhi Stock and Share Brokers' Association Limited" and "The Delhi Stocks and
Shares Exchange Limited" were established and later on merged into "The Delhi
Stock Exchange Association Limited"

Post Independence Scenario

The depression witnessed after the Independence led to closure of a lot of exchanges in the
country. Lahore Stock Exchange was closed down after the partition of India, and later on
merged with the Delhi Stock Exchange. Bangalore Stock Exchange Limited was registered in
1957 and got recognition only by 1963. Most of the other Exchanges were in a miserable state
till 1957 when they applied for recognition under Securities Contracts (Regulations) Act, 1956.
The Exchanges that were recognized under the Act were:
1. Bombay
2. Calcutta
3. Madras
4. Ahmadabad
5. Delhi
6. Hyderabad
7. Bangalore
8. Indore

Many more stock exchanges were established during 1980's, namely:

 Cochin Stock Exchange (1980)
 Uttar Pradesh Stock Exchange Association Limited (at Kanpur, 1982)
 Pune Stock Exchange Limited (1982)
 Ludhiana Stock Exchange Association Limited (1983)
 Gauhati Stock Exchange Limited (1984)
 Kanara Stock Exchange Limited (at Mangalore, 1985)
 Magadh Stock Exchange Association (at Patna, 1986)
 Jaipur Stock Exchange Limited (1989)
 Bhubaneswar Stock Exchange Association Limited (1989)
 Saurashtra Kutch Stock Exchange Limited (at Rajkot, 1989)
 Vadodara Stock Exchange Limited (at Baroda, 1990)
 Coimbatore Stock Exchange
 Meerut Stock Exchange

At present, there are twenty one recognized stock exchanges in India which does not include the
Over The Counter Exchange of India Limited (OTCEI) and the National Stock Exchange of
India Limited (NSEIL).

Government policies during 1980's also played a vital role in the development of the Indian
Stock Markets. There was a sharp increase in number of Exchanges, listed companies as well as
their capital, which is visible from the following table:

194 196 197 197 198

S. No. As on 31st December 1985 1991 1995
6 1 1 5 0
1 No. of Stock Exchanges 7 7 8 8 9 14 20 22
112 120 159 155 226
2 No. of Listed Cos. 4344 6229 8593
5 3 9 2 5
150 211 283 323 369
3 No. of Stock Issues of Listed Cos. 6174 8967 11784
6 1 8 0 7
 181 261 397
4 Capital of Listed Cos. (Cr. Rs.) 270 753 9723 32041 59583
2 4 3
Market value of Capital of Listed Cos. 129 267 327 675 2530 11027 47812
5 971
(Cr. Rs.) 2 5 3 0 2 9 1
6 Capital per Listed Cos. (4/2) (Lakh Rs.) 24 63 113 168 175 224 514 693
Market Value of Capital per Listed Cos.
7 86 107 167 211 298 582 1770 5564
(Lakh Rs.) (5/2)
Appreciated value of Capital per Listed
8 358 170 148 126 170 260 344 803
Cos. (Lak Rs.)
Trading Pattern of the Indian Stock Market

Indian Stock Exchanges allow trading of securities of only those public limited companies that
are listed on the Exchange(s). They are divided into two categories:

Types of Transactions

Indian stock exchange allows a member broker to perform following activities:

 Act as an agent,
 Buy and sell securities for his clients and charge commission for the same,
 Act as a trader or dealer as a principal,
 Buy and sell securities on his own account and risk.
The flowchart below describes the types of transactions that can be carried out on the Indian
stock exchanges:

Over The Counter Exchange of India (OTCEI)

Traditionally, trading in Stock Exchanges in India followed a conventional style where people
used to gather at the Exchange and bids and offers were made by open outcry.

This age-old trading mechanism in the Indian stock markets used to create much functional
inefficiency. Lack of liquidity and transparency, long settlement periods and benami transactions
are a few examples that adversely affected investors. In order to overcome these inefficiencies,
OTCEI was incorporated in 1990 under the Companies Act 1956. OTCEI is the first screen
based nationwide stock exchange in India created by Unit Trust of India, Industrial Credit and
Investment Corporation of India, Industrial Development Bank of India, SBI Capital Markets,
Industrial Finance Corporation of India, General Insurance Corporation and its subsidiaries and
CanBank Financial Services.
Advantages of OTCEI
 Greater liquidity and lesser risk of intermediary charges due to widely spread trading
mechanism across India
 The screen-based scripless trading ensures transparency and accuracy of prices
 Faster settlement and transfer process as compared to other exchanges
 Shorter allotment procedure (in case of a new issue) than other exchanges

BOMBAY STOCK EXCHANGE (BSE)

Bombay stock exchange is the oldest stock exchange of India For the premier Stock Exchange
that pioneered the stock broking activity in India, 128 years of experience seems to be a proud
milestone. A lot has changed since 1875 when 318 persons became members of what today is
called "The Stock Exchange, Mumbai" by paying a princely amount of Re1.
Since then, the country's capital markets have passed through both good and bad periods. The
journey in the 20th century has not been an easy one. Till the decade of eighties, there was no
scale to measure the ups and downs in the Indian stock market. The Stock Exchange, Mumbai
(BSE) in 1986 came out with a stock index that subsequently became the barometer of the Indian
stock market.

SENSEX

SENSEX is not only scientifically designed but also based on globally accepted construction and
review methodology. First compiled in 1986, SENSEX is a basket of 30 constituent stocks
representing a sample of large, liquid and representative companies. The base year of SENSEX
is 1978-79 and the base value is 100. The index is widely reported in both domestic and
international markets through print as well as electronic media.
The index is calculated on the “Free-float Market Capitalization” methodology. The "Free-float
Market Capitalization" methodology of index construction is regarded as an industry best
practice globally. All major index providers like NIKKEI, NASDAQ and DOW JONES use the
free float methodology.

The growth of equity markets in India has been phenomenal in the decade gone by. Right from
early nineties the stock market witnessed heightened activity in terms of various bull and bear
runs. The SENSEX captured all these events in the most judicial manner. One can identify the
booms and busts of the Indian stock market through SENSEX.

NATIONAL STOCK EXCHANGE (NSE)

The National Stock Exchange of India Limited has genesis in the report of the High Powered
Study Group on Establishment of New Stock Exchanges, which recommended promotion of a
National Stock Exchange by financial institutions (FI’s) to provide access to investors from all
across the country on an equal footing. Based on the recommendations, NSE was promoted by
leading Financial Institutions at the behest of the Government of India and was incorporated in
November 1992 as a tax-paying company unlike other stock exchanges in the country.

On its recognition as a stock exchange under the Securities Contracts (Regulation) Act, 1956 The
Capital Market (Equities) segment commenced operations in November 1994 and operations in
Derivatives segment commenced in June 2000.

When India’s National Stock Exchange (NSE) was started in 1994, few believed it would
survive. How could a stock exchange run by a team of untested professionals headed by a former
development banker succeed against existing stock exchanges run by third generation, savvy
stockbrokers?

Critics even went to the extent of warning that NSE’s sophisticated systems would be a misfit in
an Indian capital market dominated by physical deliveries, arbitrary speculative trade, and
lengthy trade settlements.

Today, with number of trades touching 2.5 million a day and turnover touching turnover
touching Rs 100 billion in value terms, NSE towers over all the other stock exchanges in the
country.

In a ten-year period (NSE completed a decade on June 30, 2004) the National Stock Exchange
has tilted the market system in favour of investors and away from a significant bias in favour of
intermediaries. For a mass of investors across the country, the NSE is now the focal point for
trading in stocks, and futures and options.

The Stock Exchange, (NSE) came out with a stock index that subsequently became another
barometer of the Indian stock market known as NIFTY.
Nifty is the focal point of investors, as it provides trading the shares as well as index in futures
and options. Before Nifty came into existence trading of index concept was not present it was
introduced by Nifty and is present in it only, till date.

Cash market and derivatives

National stock exchange gives the investors different option where an investor can deal the
equities into different market situations like cash market and derivatives.

Cash market is simply the equity market where investors have to pay the security amount which
is done in BSE also but in NSE investors has the choice of dealing in derivatives. Derivatives are
the future market where investors have the option of dealing in the price list of futures for which
there a separate index is present known as NIFTY FUTURE.

In Derivatives there are two choices available for an investor FUTURES AND OPTIONS.

FUTURE – In future market shares are deal in lots these lots could be of different numbers like
100, 200, 500 etc. Investors while taking over these lots and coming under the contract takes the
position of the shares by paying the 1/3rd amount of the total holdings. (could be understood by a
formula).

Holdings of investors = (shares lot * price of the lot) / 3.

This formula explains that as investor is interested in taking 2 lots of reliance of 100 shares of
Rs. 900 , the investor has to pay:- (2*100*900) / 3 = 60000/-

Which shows the investor is taking the position of Rs. 180000/- in just Rs. 60000/- in future
market which the area of attraction of this particular market. These holdings are taken for 1
month, 2 months and three months according to the investor’s preference. The beauty of this
contract is that the remaining 2/3rd money of the holdings are paid by the broking house the
investors dealing with. Investor coming into this contract should know that by the time of
contract he is in like of 1 or 2 months investor should clear its position before the last Thursday
of the expiry month.

OPTIONS – Option is a contract where the investor has two options to deal with CALL and
PUT. The concept of call and put is opposite to each other call is the contract where the investors
believe that the market is going to be BULLISH in near future and put option is taken when he
thinks that the market is going to be BEARISH in the future.

In the call option investors is benefited if market drives up in future and in put will be benefited
if it slips down.
 ۩ Funds mobilized in primary market rose to Rs 1, 74,143 cr through 558 issues in 2007-08
against Rs 55,654 cr through 451 issues in 2006-07. Out of this Rs 87,029 cr were raised
through 124 public and right issues against Rs 33,508 cr through 124 issues in 2006-07.
Total of Rs 42,595 cr was raised through 85 IPOs in 2007- 08 against Rs 28,504 cr
raised through 77 IPOs in 2006-07.

۩ Net resource mobilization by mutual funds grew to Rs 1,53,801 cr in 2007-08 with a

63% rise from Rs 93,984 cr in 2006-07. Cumulative Assets under management rose to Rs
5,05,152 in March 2008 from Rs 3,26,292 in March2007.

Stock Trading
Traditionally stock trading is done through stock brokers, personally or through telephones. As
number of people trading in stock market increase enormously in last few years, some issues like
location constrains, busy phone lines, miss communication etc start growing in stock broker
offices. Information technology (Stock Market Software) helps stock brokers in solving these
problems with Online Stock Trading.

Online Stock Market Trading is an internet based stock trading facility. Investor can trade shares
through a website without any manual intervention from Stock Broker.

In this case these Online Stock Trading companies are stock broker for the investor. They are
registered with one or more Stock Exchanges. Mostly Online Trading Websites in India trades in
BSE and NSE.

There are two different type of trading environments available for online equity trading.

۩ Installable software based Stock Trading Terminals

These trading environments require software to be installed on investors’ computer. This

software is provided by the stock broker. This software requires high speed internet
connection. These kind of trading terminals are used by high volume intraday equity traders.

Advantages:

 Orders directly send to stock exchanges rather than stock broker. This makes
order execution very fast.
 It provide almost each and every information which is required to a trader on a
single screen including stock market charts, live data, alerts, stock market news
etc.
 Disadvantages:

 Location constrains - You cannot trade if you are not on the computer where you
have installed trading terminal software.
 It requires high speed internet connection.
 These trading terminals are not easily available for low volume share traders.

۩ Web (Internet) based trading application

This kind of trading environment doesn't require any additional software installation. These
are like other internet websites which investor can access from around the world through
normal internet connection. Below are few advantages and disadvantages of Online Stock
Market Trading:-

Advantages of Online Stock Trading (Website based):

 Real time stock trading without calling or visiting broker's office.

 Display real time market watch, historical data’s, graphs etc.
 Investment in IPOs, Mutual Funds and Bonds.
 Check the trading history; D-mat account balance and bank account balance at
any time.
 Provide online tools like market watch, graphs and recommendations to do
analysis of stocks.
 Place offline orders for buying or selling stocks.
 Set alert to inform you certain activity on the stock through email or SMS.
 Customer service through Email or Chat.

Disadvantages of Online Stock Trading (Website based):

 Website performance - sometime the website is too slow or not enough user
friendly.
 Little long learning curve - especially for people who don’t know much about
computer and internet.
Trading Terminology
Trading terminology explains some of the commonly used terms related to stock trading.
Investors can get detailed information regarding the same by clicking on the following links:
╬ Shares : A share represents a unit of ownership in a company
╬ Demat Account : An account where securities are held in an electronic form
╬ Trading : An activity of buying and seling shares to earn capital gains
╬ Types of Analysis : Analyzing which is a good company to invest in
╬ Indices : An index is an average of stocks representing the market
╬ Contracts : Confirmation given by the broker to his client for a trade executed
╬ Settlement : Process of determination of obligations standing against parties to trade
╬ Limits/Margins : Collateral that a member has to deposit with the exchange
╬ Dividends : Payouts made by the companies to shareholders as a reward for buying stock in
that company

Shares
Shares are the best investment available over a long period of time. The growth of share prices
comfortably out-paces inflation most years because the best share prices represent the growth in
earnings of the best companies. Although the stock market is seen as "high risk" this depends
very much on timing and the sort of shares you invest in. It is possible to invest in shares with
very little risk if you are willing to put in a great deal of effort in learning the art of investment
and doing ample research.

Shares have acquired a high-risk reputation because the majority of people only participate in the
stock market during bull markets, buying at or near historic high prices in the belief that past
returns may by a good indicator of future results. Those that buy just before a crash do not
appreciate share valuations and upside potential vs downside risk. In fact such considerations
actually bore them and many newcomers choose to trade shares in a highly speculative fashion,
making the stock market into little more than a casino.

The rewards are great, but the penalty for laziness is also great. Those that buy on "hot tips" and
rely on the opinions of others, without any knowledge of what they are doing are often those who
suffer the greatest loss.

A "share" is nothing more, and nothing less than a partial ownership of a business. If you look at
shares investment as the partial purchase of businesses, you are already half way to becoming a
successful investor (the other half is to get some idea of what a business is worth, economically,
and hence to be able to value a share). If you think of shares as part ownership of businesses you
have a substantial advantage over those who think of them only as abstract pieces of paper with a
randomly fluctuating price tag.
Direct share investment is not suitable for everyone, many simply do not have the time or the
inclination to research a portfolio adequately, and will be exposed to the greatest dangers when
they do take the plunge and buy something. Managed funds are available that give returns
roughly in line with market averages (if you take into account tax and trading expenses) and
these are by far a superior investment for those that do not wish to make investment their
profession.

Shares, as a whole, are not highly speculative investments with a low probability of success. The
chances of making money in shares over all but the shortest time frames are excellent, however
you need more than just money and a desire to succeed in order to invest successfully.

No one should be afraid of the stock market; it does not crash without reason at any random
time. If you choose to ignore stocks out of fear of a market downturn, you ignore the best
investment that there is.

Demat Account
Demat account is a safe and convenient means of holding securities just like a bank account is
for funds. Today, practically 99.9% settlement (of shares) takes place on demat mode only. Thus,
it is advisable to have a Beneficiary Owner (BO) account to trade at the exchanges.

Bank Account Vs Demat Account

Basis Of
S. No. Bank Account Demat Account
Differentiation
Form of
1. Funds Securities
Holdings/Deposits
2. Used for Safekeeping of money Safekeeping of shares
Transfer of money (without Transfer of shares (without
3. Facilitates
actually handling money) actually handling shares)
A DP of choice (can be a
4. Where to open A bank of choice
bank)
Requirement of PAN Mandatory (effective from
5. Not Mandatory
Number April 01, 2006)
No interest accruals on
Interest accrual on Interest income is subject to the
6. securities held in demat
holdings applicable rate of interest
account
Minimum balance AQB* maintenance is specified
7. No such requirement
requirement for certain bank accounts
Either or Survivor
8. Available Not available
facility
*AQB - Average Quarterly Balance

S. No. BASIS OF SIMILARITY PARTICULARS

 Both are very safe and convenient means of holding
1. Security and Convenience
deposits/securities
No legal barrier on the number of bank or demat
2. Number of accounts
accounts that can be opened
Transfer of deposits (funds or Funds/securities are transferred only at the
3.
securities) instruction of the account holder
Physical transfer of
4. Physical transfer of money/securities is not involved
money/securities
5. Nomination Facility Available

Benefits Of Demat Account

1. A safe and convenient way of holding securities (equity and debt instruments both).
2. Transactions involving physical securities are costlier than those involving dematerialized
securities (just like the transactions through a bank teller are costlier than ATM
transactions). Therefore, charges applicable to an investor are lesser for each transaction.
3. Securities can be transferred at an instruction immediately.
4. Increased liquidity, as securities can be sold at any time during the trading hours (between
9:55 AM to 3:30 PM on all working days), and payment can be received in a very short
period of time.
5. No stamp duty charges.
6. Risks like forgery, thefts, bad delivery, delays in transfer etc, associated with physical
certificates, are eliminated.
7. Pledging of securities in a short period of time.
8. Reduced paper work and transaction cost.
9. Odd-lot shares can also be traded (can be even 1 share).
10. Nomination facility available.
11. Any change in address or bank account details can be electronically intimated to all
companies in which investor holds any securities, without having to inform each of them
separately.
12. Securities are transferred by the DP itself, so no need to correspond with the companies.
13. Shares arising out of bonus, split, consolidation, merger etc. are automatically credited
into the demat account of the investor.
14. Shares allotted in public issues are directly credited into demat account of the applicants
in quick time.

Opening a Demat Account

To start dealing in securities in electronic form, one needs to open a demat account with a DP of
his choice. An investor already having shares in physical form should ensure that he gets the
account opened in the same set of names as appearing on the share certificate; otherwise a new
account can be opened in any desired pattern by the investor.

Getting started Documents to be attached

1. Choose a DP  Passport size photographs

2. Fill up an account opening form
provided by DP, and sign an
agreement with DP in a standard
format prescribed by the
depository.
3. DP provides the investor with a
copy of the agreement and
schedule of charges for his future
reference.
4. DP opens the account and
provides the investor with a
unique account number, also
known as Beneficiary Owner
Identification Number (BO ID).
 Proof of residence (POR) - Any one of
Photo Ration Card with DOB/Photo
Driving License with DOB/Passport
copy/Electricity bill/Telephone bill
 Proof of identity (POI) - Any one of
Passport copy / Photo Driving License
with DOB / Voters ID Card / PAN Card
/ Photo Ration Card with DOB
 PAN card

Note:
 The agreement required to be signed by the investor details the rights and duties of the
investor and DP.
 DP may revise the charges by giving a 30 days prior notice. SEBI has rationalized the cost
structure for isation by removing account opening charges, transaction charges for credit
of securities and custody charges, effective from January 28, 2005.

Maximum Number of holders in a Demat Account

A maximum of three persons are allowed to open a joint demat account in their names.

Trading
Trading is the process of buying and selling securities. The procedure of trading consists of two
processes, i.e. Delivery (when securities are sold) and Receipt (when securities are purchased).
These two processes can be understood as follows:

I. Process of Receipt

Note:
One can also give "Standing Instruction" to receive credits into the account directly without
having to give the receipt instruction to the broker every time.

II. Process of Delivery

Note:
This instruction should reach the DP's office at least 24 hours before the pay-in. Failure in doing
so transfers the entire risk upon the investor.

Forms of Trading
Trading can be of following two types:

 Delivery Based

 Intra-day
Delivery Based
Delivery based trading is normally considered as a safer approach for trading in shares when
compared to day trading. Delivery based trading involves buying shares on a market day and
selling them only after receiving the delivery of those shares in demat account.

Things Investors Should Know About Trading - Standing Instruction

In order to receive credit into the demat account it is important to submit the "Receipt-in form",
which is similar to filling in pay-in slips to receive credit into your bank account. Standing
Instruction is a facility provided for the convenience of the investors, where in an investor who
has opted for this facility doesn't need to submit the receipt in forms every time he wants to buy
securities. However, this facility is discretionary and can be availed only when an investor opts
for it.

Delivery Instruction Slip (DIS)

DIS of a depository account is similar to a cheque book of a bank account, which is needed to be
submitted by the investor whenever he wants to sell securities. When opening a depository
account, investor must ensure that:
1. DP issues a DIS book.
2. Every slip contains a pre-printed DIS slip acknowledged by the DP.
3. The account number (Client ID) must be pre-stamped on every slip.
4. All the account holders sign the instruction slip, in case it is a joint account.
5. They don't leave signed slips with the broker or sub-broker, or any other person.
6. DIS slip is kept in a secured place when not in use.
7. The remaining space in the DIS slip is striked out, if only one entry is made, to prevent
its misuse.
8. Target Account ID, Client ID and other details in the slip are personally filled in by the
investor himself.

Giving Delivery Instruction to the DP over Internet

Well known as SPEED-e and EASI, this facility (provided both by NSDL and CDSL) enables an
account holder to deliver instructions to the DP over Internet, eliminating the need to submit DIS
to the DP. This facility can be availed by paying necessary charges.
Clearing & settlement
For all trades executed on a given day, it is important to determine the obligations standing at the
end of the day against parties to trade. This process of ascertaining obligations is known as
clearing, and the process of meeting or discharging these obligations is known as settlement.
NSCCL is the corporation that deals with all clearing and settlement activities at NSE.

NSCCL

The National Securities Clearing Corporation Limited, a subsidiary of National Stock Exchange
of India Ltd., was incorporated in August 1995 to carry out the clearing and settlement of the
trades executed in the Equities and Derivatives segments of NSE. It also operates Subsidiary
General Ledger (SGL) for settlement of trades in government securities and undertakes
settlement of transactions on other stock exchanges like the Over the Counter Exchange of India
(OTCEI). NSCCL commenced clearing operations in April 1996. The purpose behind setting up
NSCCL was:
1. To bring and sustain confidence in clearing and settlement of securities.
2. To promote and maintain, short, consistent and well defined settlement cycles without any
deviations.
3. To provide counter-party risk guarantee.
4. To operate a tight risk containment system.

NSCCL aggregates trades executed over a trading period, assesses the net positions in order to
find out the liabilities of the members. Finally, it ensures that the respective liabilities are met
with a regular movement of funds and securities.

Settlement Calendar

NSCCL issues a notification on a monthly basis which represents the schedule for settlement of
trades taking place in that particular month.
MARGINS
In simple terms, margin refers to the collateral that a member has to deposit with the exchange to
be able to trade on any given day. It is a risk management system backed with the objective
of protecting the exchange against any potential adversity that may arise in the future.

Margin payment by the members

It is necessary to pay the daily margins for all clients (for a rolling settlement) on the working
day that follows the trading day, i.e. on (T+1) day. It is the responsibility of the members to
calculate margin amount payable by them on the due date. Margin money can be deposited in
multiples of Rs 10,000/-, in form of cash/bank fixed deposits (FDRs)/bank guarantee.

Margin payout

NSCCL, at its own discretion, may return the margin amount back to the member on the
subsequent day (after adjustment for dues), or may choose to retain whole/part of the cash
margin amount payable to a specific member to contain risk.

Collecting Margins from the Client

Just like the Exchange, the members should also have a good risk management system to protect
themselves from any possible client defaults. However, it is completely at the discretion of the
member to make decision regarding the amount and mode of margins collection.

Violation of Margins

The member shall face following consequences in an event of non-payment of margin or any
shortage in margin payment:
Review of Literature

Review 1st: Fullerton Securities on expansion mode (Publication: Financial

Chronicle, Avian Media).
Fullerton Securities and Wealth Advisors Ltd. Which focuses on wealth management products
for the mass affluent, plans to expand presence to 2025towns in a year from the current 12
towns, its Chief Executive & Management Director, Mr. Pallav Sinha, has said.

Plans were afoot to scale up its headcount to 600, from 400, in the next two months, Mr. Sinha
told Business News Line here, adding that the company aimed to be among the top five players
in the Wealth management/ broking business in the next four or five years.

In a year, FSWA is looking at a headcount of about 800-900 people, he added. Fullerton

Securities and Wealth Advisors Ltd. started its operation in May 2009 and is part of Fullerton
Financial Holdings Pte. Ltd, a wholly owned subsidiary of Singapore-headquartered Temasek
Holdings, an Asian Investment House.

The wealth management and broking and broking market is a growing but fragmented one.
FSWA has decided to focus on those with an annual gross income of between Rs 5 lakh and Rs
25 lakh.

Mr. Sinha has indicated that FSWA would in the coming years look at offering portfolio
management services in India, especially for the middle segment.

Fullerton Securities and Wealth Advisors would look at partnership or the acquisition route to
grow, although the current focus was organic growth, he added.
Review 2nd: Smart ways to invest in Equity (Publication: Financial Chronicle,
Avian Media).
A thought fully planned financial plan can lend a lot of comfort in times of need. Start early and
invest in equities to your wealth grow faster. We all have dreams. Dreams of celebrating some
special events in life with complete vigor, making sure that our children get the best in education
and life, spending our sunset days relaxing or cultivating our most cherished hobbies. While
dreams remain for some people, some do achieve their goals – by saving early and invest
smartly. For a better tomorrow, we all need to plan our investments and manage our spending
and debt today. By starting early, we can achieve our medium and long term financial needs and
goals whether it is paying off credit cards bills in time, saving for a special trip or financing a
child’s education.

Asset Allocation
Asset allocation is extremely important for determining the investment strategy that should aim
at balancing the risk and reward by apportioning a portfolio‘s assets according to the individual’s
goals, risk tolerance and investment horizon. Asset allocation is more important to long-term
returns than specific investment choices or timing the market. But since guessing which asset
category will do best at a certain time is very difficult, investment need to be divided between
asset categories. Understanding this strategy is the to investment success. While an asset
allocation plan eliminates a lot of day-to-day decisions involved in investing, it doesn’t mean
you should just set it and forget it. Reviewing the portfolio regularly with the relationship
manager to monitor and rebalance the asset allocation helps in ensuring that investments are in
line with your expectation and goals.

Model Portfolio
A model portfolio helps in determining the client place in the range of aggressive to conservative
investors, based on the risk tolerance, investment objectives and timeline. Each model portfolio
reflects a possible combination of equity asset classes for a representative investor profile. Each
of the model portfolios consists of approximately 15 to 20 highly rated stocks which are
carefully chosen to ensure diversification as it gives the advantage of lesser fluctuations as
compared to individual stock. These portfolios have been designed keeping in mind key factors
like:

a. Time horizon
b. Risk appetite
c. Returns expected
d. Volatility of the stocks
Review 3rd: Mid-income group offers opportunity for customized wealth
management. (Publication: Financial Chronicle, Avian Media)
╬ An increasing number of entities are offering wealth management services today?
Where do you see the opportunity for Fullerton?

Mr. Pallav Sinha, Management Director and Chief Executive, Fullerton Securities answered
in the manner that they feel that the opportunity as a wealth manger exists primarily in the
large mass-affluent segment of the country where customers are aware of wealth
management products but nobody really gave them consistent service of financial advisory.
Wealth management service for the middle income group is not really customized. They feel
there is a big opportunity here combined with the fact that there were more and more people
entering the earning age group with a higher saving rate in the country and more disposable
income. That is business they aim to target.

╬ What does the ‘mass-affluent’ segment mean for you in terms of disposable
income?

We are talking of starting annual income of Rs. 4-5 lacs going on the way up to Rs 24-25
lacs. It is the wide band. That’s the mass affluent segment for us and that’s really the
category where wealth management service and financial advisory is not being offered to
customers.

╬ What would be a typical product to attract the category that has just started
earning?

We have the Fullerton advantage account, which is really a packaged membership to our
service that gives you access to broking account, a relation manager one centralized number
which you can call for any service or any transaction. It offers internet broking and it also
comes with some free benefits like personal accidental insurance and certain free turnover
that you can get.

╬ How many customers are you at present dealing with and what would be the
average age group?

We have close to 7000 customers. The age group varies but because we do a lot college
sourcing, a large percentage of our clientele would be the younger lot.

╬ How much would your assets under management be?

If we include all products including equities, which involve a lot of trading and depository
money our total assets under management at present would be in the region of Rs 100 crore.
Research Methodology
Objective of Research
Each research study has its own specific purpose. It is like to discover to Question through the
application of scientific procedure. But the main aim of our research is to find out the truth that is
hidden and which has not been discovered as yet. Our research study has two objectives:-

PRIMARY OBJECTIVE: -

How Fullerton securities Ltd is best services provider as a stock broker among other compititors
in the Tri-city region.

SECONDARY OBJECTIVE: -
 To know about the awareness towards stock brokers and share market.
 To study about the competitive position of Fullerton securities Ltd in Competitive
Market.
 To study about the effectiveness & efficiency of Fullerton securities Ltd in relation to its
competitors
 To study about whether people are satisfied with Fullerton securities Services &
Management System or not
 To study about the difficulties faced by persons while Trading in Fullerton securities ltd.
 To study
about
the need of

improvement in existing Trading system.

TYPES OF RESEARCH

On the basis of theoretical study a research has many types. All of these are distributed on the
nature of research. Some of these are like

1. Descriptive and Analytical

2. Qualitative and Quantitative
3. Conceptual and empirical
4. Applied and fundamental
5. One time research

Our research is based on Descriptive, Qualitative and Quantitative research.

Descriptive Research: - Descriptive research includes surveys and fact finding enquires of
different kinds. The major purpose of descriptive research is description of the state of affairs as
it exists at present. Researcher has no control over the variables of this type of research.

Qualitative Research: - In our research we need comparison between different stock brokers.
So this based on all qualitative data. In short, Qualitative research is especially important in the
behavioural sciences where the aim is to discover the underline motives of human behaviour.
Through such research we can analyses various factors which motivate to people to behave in a
particular manner or which make people like or dislike a particular thing.

Quantitative research: - Quantitative research is based on the measurement of quantity or

amount. It is applicable to phenomena that can be expressed in terms of quantity. So we can use
it in our research for collection of all the numerical data.

SAMPLE DESIGN

“A sample design is a definite plan for obtaining a sample from a given population. It refers to
the technique or the procedure the researcher would adopt in selecting item for the sample”

Generally Sample designs are two types:

 Probability research design

 Non probability research design

We used the probability research design.

SAMPLING UNITS

Sampling unit may be a geographical one, such as state, district, village etc. The researcher will
have to decide one or more of such units that he has to select for his study.

In my research study Chandigarh as a sampling unit.

SIZE OF SAMPLE

“This refers to the number of items to be selected from the universe to constitute a sample”

In our research sample size is 50.

Sample Size 50

 20-30 years
 30-40 years
Target Population
 40-50 years
 above 50 years

Location Mohali, Chandigarh

 Type of questionnaire Structured

No. of Questions involved 13

SOURES OF DATA COLLECTION

While deciding about the method of data collection to be used for the study the researcher should
keep to types of data.

1. Primary
2. Secondary Data.

Survey Method: - Survey refers to the method of securing information concerning phenomena
under study from all or selected number of respondents of the concerned area. In a survey the
investigator examines those phenomena which exist in the universe independent of his action.
We used the Scheduling Method.

Scheduling: - In this method the enumerators along with schedules, go to respondents, put to
them the questions from the Performa in the order the questions are listed and recorded the
replies in the space meant for the same in the Performa.

We use in our research primary data, as well as secondary data. Primary means collected a fresh,
and the first time data and secondary means which are already available like annual report,
magazines etc.

The information required for our project was collect mainly from the primary sources and even
from secondary sources. The primary source consists of the data analyzed from questionnaire
and interaction with the user at that time only. And internet is used as secondary source.

Data is collected through questionnaire schedule method. It means the investigators are trained
to collect the information required for an enquiry through schedule. The trained investigators
meet the people concerned and fill up the schedules with the information supplied by them.

LIMITATIONS:-

 Time limitation
 Research has been done only in Delhi.
 Companies did not disclose their secrets data and strategies.
 Possibility of Error in data collection.
 Possibility of Error in analysis of data due to small sample size.
 ANALYSIS AND INTERPRETATION

1. In which professions are you engaged in?

Business Service Professional

Entrepreneur Others

Profession

20%
28% Business

10% Service

Professional
22% 20%
Entrepreneur

others

ANALYSIS:

Among the 50 questionnaires filled, it was clear that among them maximum people falls in the
category of Business. Thus Fullerton has the opportunity to capture this segment.

2. In which income group do you fall?

Less than 1 Lakh

1 – 3 Lakhs

3 – 5 Lakhs

5 – 8 Lakhs
 More than 8 Lakhs

Income Group
12%
Less than 1 Lakh
8% 30%

1 - 3 lakh
14%

3 - 5 lakh

5 - 8 lakh
36%
More than 8 lakhs

ANALYSIS:
The above observation speaks about the income group in which the people fall; most of the
people fall in category of. Thus more focus should be made on securities so that company has the
maximum investment. This would ultimately increase the profits.

3. How much income are you able to invest?

0 - 10% 10 - 20%

20 – 30% 30 – 40%

< 40%

Savings
20% 14%

0 - 10%
10 - 20%
20 - 30%
16% 28%
30 - 40%
<40%
22%

ANALYSIS:
Among the 50 questionnaires filled, it was clear that among them maximum people invest in the
category of 10-20%. Thus Fullerton has the opportunity to capture this segment. But people are
not aware of the services so here Fullerton has to work in this area.

4 You invest in which of the following financial instruments?

Securities Mutual fund

Commodities Insurance

Other Instruments

ANALYSIS:

6 Financial instruments
4
18
Securities
7 Insurance
Mutual Funds
Commodities
Other Instruments

15

The above observation speaks about the financial instruments in which the people invest; most of
the people invest in the securities through share market and then invest in the insurance. Thus
more focus should be made on securities so that company has the maximum investment. This
would ultimately increase the profits.

5. Do you have a D-mat account?

Yes No

ANALYSIS:
 Demat A/C
18
With Demat A/C
Without Demat A/C
32

Among 50 respondents 32 actually have a demat account and are aware of the dealings in stock
trading. The rest 18 are still in the other category. So strategies should be made to convert these
people in to our potential customers.

6. Do you invest/interested in stock market?

Investors

21
Interested

29 Not Interested

Yes No

ANALYSIS:

It can be seen that among the whole population around 58% people either invest in stock market
or they are actually interested, but don’t have a good knowledge about it. So these people can
actually become Fullerton’s target market but Fullerton has to provide them the better services
and brokerage plans and also, providing them the initial platform of online trading.
7. In which company you have your D-mat account?

Fullerton India Bulls Kotak

Religare ICICI Direct Share Khan

Others

ANALYSIS:

20
18
16
14
12
10 North
8
6
4
2
0
ShareKhan Indiabulls Religare Fullerton

Among these 32 people most of them have their demat account with ShareKhan and Indiabulls.
Thus these two are Fullerton’s biggest competitors. Also Religare gives a good competition to
Fullerton. These brands have a good brand recall as compared to Fullerton.

8. What do u look for when you are going to invest in the stock market?
Low Risk - Low return

Medium Risk- Medium return

High Risk -High Returns

Analysis:

A good percentage of people take medium risk to get medium returns. Fullerton can have the
advantage of attracting their customers
9. How often you trade in the stock market

(a) Everyday (b) 2-3 Days a week

(c) 12-18 days a month (d) 2-3 days a month

6%
11%

Everyday
19% 2-3 Days a week
12-18 days a month
64% 2-3 days a month

ANALYSIS:

The above observation speaks about the; most of the people do trading every day. Thus more
focus should be made on the traders which are every day traders. The company should also focus
on the others also because they are the traders for the long term investment and also, provide
heavy brokerage to the company.
10. How much Brokerage do you pay on Intraday?

(a) (0.01 – 0.02) % (b) (0.02 – 0.03) %

(c) (0.03 – 0.04) % (d) (0.04 – 0.05) %

(e) 0.05 % or more

3%

27%
26%

(0.01 – 0.02) %
(0.02 – 0.03) %
(0.03 – 0.04) %
(0.04 – 0.05) %
0.05 % or more

18%

26%

ANALYSIS:

It can be seen that the companies are charging brokerage according to their own means. So, the
companies are creating biasness between the customers. Even if the customers portfolio is the
same then also the brokerage may vary from the person to person. So, Fullerton has the best
feature of providing less brokerage and according to the customers wants.
11. How much Brokerage do you pay on Delivery?

(a) (0.1 – 0.2) % (b) (0.2 – 0.3) %

(c) (0.3 – 0.4) % (d) (0.4 – 0.5) %

(e) 0.5 % or more

1%
25% 24%

(0.01 – 0.02) %
(0.02 – 0.03) %
(0.03 – 0.04) %
(0.04 – 0.05) %
0.05 % or more

19%

31%

ANALYSIS:

Here also you can see that the long term investors have to give brokerage according to what the
company wants. So, here also the biasness is created in the mind of the customers. So, Fullerton
got a great opportunity to attract the customers by giving the brokerage plans according to what
the customer want.
12. Are they getting the good services?

(a) Yes

(b) No

36%

Yes
No

64%

ANALYSIS:

It can be seen from the observations that there are customers who are not satisfied by the services
given by the brokerage companies can be converted by providing better services to them.
Sometimes even if the customers have the same or more investment then also, he is getting fewer
services than the other one. So, Fullerton can convert them by providing better services to them.
SUMMARY
The Present business scenario is totally consumer oriented. Every company faces stiff
competition from its competitors, each provides the best product at competitive rates. As a result
customers have lot of choices to get the best with the least cost. To face this competition, it is
very important to know customer’s behavior, there needs, preference and also the motivation
factors.

My Project was on “Relationship Marketing of Financial Products” Dealing in the financial

product with in Chandigarh. To know the Motivational & demotivational factors of the client so
as to cater the needs in most appropriate manner. It will help business to expand its network &
also its services.

I had done my project under the guidance of My Guide Mr. Amardeep Mahalwar (senior
relationship manager) and Mr. Mohit Singla (senior relationship manager)) whose guidance
helps me in completing my Project Work Successfully.

Fullerton Securities Limited Provide its Expert service in Capital market Operations to
institutional Investors. Company is a Member of National Stock Exchange as well as Bombay

Stock Exchange.
Fullerton is
slowly but steadily
gaining market share
and goodwill in
the Market. Its
strategies for marketing its services as well as developing a good Relationship Marketing with its
client has given an edge over the other service providers. Fullerton is on expansion path and is
looking forward to be in the top. Fullerton is a very flexible organization and its gives equal
opportunity to its young and energetic staff to work so as to bring this organization among the
top.

This project also throws lights on the working frame of broking service. This industry is on the
spree to adopt the latest technology and thus any player has to be dynamic in this industry. The
comparative analysis done in this project shows that how Fullerton has built competitive edge on
some ground. The Project help you understand the strategies of this industry right from De-Mat
to Trading, Margin to analysis and risk to return. I hope this project prove to be beneficial for the
Company and also give the reader a through idea about the industry. I learnt a lot through out the
process of undertaking this project report. To fulfill my task I had to visit the clients personally
who are dealing in share trading with this company or some other broking house.

For this project I was assign the target of 10 accounts, for which I first generated the database
and made appointment with them and convert them in as traders of Fullerton Securities Limited,
for this I have to convince them and explain the concept and collect the Trading Form and a
cheque of Rs. 1995 with margin money.

After going through the exercise I found that RSL is one of the upcoming companies in the
Marketing of financial Product, as the credibility of other companies are going down in the
market and it is the right time for the RSL to built its reputation in the market. The Main reason
for RSL low market share is because of local brokers in the market which a charging very less
Margin as initial investment for Trading in Stock Market.

But No doubt it is having lots of scope to grow in the financial Market, and I wish it is having a
shining future in the coming years.

Conclusion

In spite of the bleak and grim outlook the future of capital market it is growing at a very high
pace. Taking this things into consideration there are lots of opportunity for the Broker House
which already exist and which are due to enter in the Indian market. These are little awareness
about Equity and Mutual funds in India people have accepted it as one of the major investment
avenue. As people have entered in this particular investment avenue they have lost there money
because of movement in the market which is below the par value and this has shaken the faith of
investor in this particular avenue. Another reason for low investment in this sector is due to
country most of the companies not performing well and also due to the scams that are taking
place frequently Once people know about the benefit offered by it, Capital market will become
one the sought after investment avenue. As far as other product marketed by Fullerton
Securities is concerned they have a ready market. The only thing which is needed to focus on is
that they should have a strong marketing strategy so that prompt service and availability of forms
is made available to the investors at a short notice and if it keeps the traditional base for
marketing in India which is a price sensitive. We can say that Fullerton Securities has a great
future ahead.

Fullerton Securities is emerging as very strong player in the field of distribution of financial
product within a short period of one year in Northern India and is giving stiff competition to the
entire player in the Tri-City. If the progress of Fullerton Securities goes in the same way then I
can say that Fullerton Securities will go to emerge as a major player in the Capital market.
They have much more potential to expand there business and market in India.
RECOMMENDATIONS

On the basis of these findings and analysis, It has can be surely said that in stock broking
industry, differentiation can become the key to higher revenues. Better service, straight through
processing(STP), immediate execution, portfolio services, investment advisors and telephone call
centers or branch investment offices are needed to retain customers and to increase the revenue
base. As more number of people will get comfortable with internet/technology, broking
(especially online broking) will have a completely new meaning with more fringes coming into
the picture and more firms will offer umbrella services to their clients. Thus more of strategies
should be undertaken

 Providing better plans and schemes than our competitors like Sharekhan,
Indiabulls, and ICICI direct are providing in terms of brokerage and subscription.
 Formulation of more corporate schemes for employees of organizations falling
under Fullerton’s corporate category.
 Drafting a website which is both professional and user friendly
 Associating Fullerton with ICICI to make it a power brand.
 Taking Fullerton from the brand recognition stage to brand insistence stage.
 Fullerton Securities should build its BRAND Image more strong by increasing
visibility
 There should be more banners posters pamphlets distribution in the market to
increase the awareness level among the people
 Fullerton Securities should build its BRAND Image more strong by increasing
visibility
 Fullerton should make its brokerage structure more flexible to give a good
competition to the investors
Bibliography

http://www.fullertonfinancialholdings.com

http://www.fullertonsecurities.co.in

http://www.appuonline.com

http://www.hinduonnet.com/businessline/iw/2000/09/03/stories/0703g051.htm

http://www.traderji.com/

http://www.religareonline.com

http://religaresecurities.com/trade.asp

http://www.ShareKhan.com

http://www.indiabulls.com

http://www.icicidirect.com

http://www.chittorgarh.com/newportal/online-stock-brokers-list.asp

www.financialtimes.net

http://www.religare.in/