HISTORY HISTORY OF THE STOCK BROKING INDUSTRY

Indian Stock Markets are one of the oldest in Asia. Its history dates back to nearly200 years ago. The earliest records of security dealings in India are meager andobscure.By 1830's business on corporate stocks and shares in Bank and Cotton presses tookplace in Bombay. Though the trading list was broader in 1839, there were only half adozen brokers recognized by banks and merchants during 1840 and 1850. The1850's witnessed a rapid development of commercial enterprise and brokeragebusiness attracted many men into the field and by 1860 the number of brokersincreased into 60.In 1860-61 the American Civil War broke out and cotton supply from United States of Europe was stopped; thus, the 'Share Mania' in India begun. The number of brokersincreased to about 200 to 250. However, at the end of the American Civil War, in1865, a disastrous slump began (for example, Bank of Bombay Share which hadtouched Rs 2850 could only be sold at Rs. 87). At the end of the American CivilWar, the brokers who thrived out of Civil War in 1874, found a place in a street (nowappropriately called as Dalal Street) where they would conveniently assemble andtransact business.In 1887, they formally established in Bombay, the "Native Share and Stock Brokers'Association" (which is alternatively known as "The Stock Exchange"). In 1895, theStock Exchange acquired a premise in the same street and it was inaugurated in1899. Thus, the Stock Exchange at Bombay was consolidated.Thus in the same way, gradually with the passage of time number of exchangeswere increased and at currently it reached to the figure of 24 stock exchanges.

BSE(BOMBAY STOCK EXCHANGE)

The Stock Exchange, Mumbai, popularly known as "BSE"was established in 1875as"The Native Share and Stock Brokers Association".It is the oldest one inAsia, even older than the Tokyo Stock Exchange, which was established in 1878. Itis a voluntary non-profit making Association of Persons (AOP) and is currentlyengaged in the process of converting itself into demutualised and corporate entity. Ithas evolved over the years into its present status as the premier Stock Exchange inthe country. It is the first Stock Exchange in the Country to have obtained permanentrecognition in 1956 from the Govt. of India under the Securities Contracts(Regulation) Act, 1956.The Exchange, while providing an efficient and transparent market for trading insecurities, debt and derivatives upholds the interests of the investors and ensuresredressal of their grievances whether against the companies or its own member-brokers. It also strives to educate and enlighten the investors by

conducting investor education program and making available to them necessary informative inputs.A Governing Board having 20 directors is the apex body, which decides the policiesand regulates the affairs of the Exchange. The Governing Board consists of 9elected directors, who are from the broking community (one third of them retire ever year by rotation), three SEBI nominees, six public representatives and an ExecutiveDirector & Chief Executive Officer and a Chief Operating Officer

NSE(NATIONAL STOCK EXCHANGE)

NSE was incorporated in 1992 and was given recognition as a stock exchange inApril 1993. It started operations in June 1994, with trading on the Wholesale DebtMarket Segment. Subsequently it launched the Capital Market Segment inNovember 1994 as a trading platform for equities and the Futures and OptionsSegment in June 2000 for various derivative instruments.NSE has been able to take the stock market to the doorsteps of the investors. Thetechnology has been harnessed to deliver the services to the investors across thecountry at the cheapest possible cost. It provides a nation-wide, screen-based,automated trading system, with a high degree of transparency and equal access toinvestors irrespective of geographical location. The high level of informationdissemination through on-line system has helped in integrating retail investors on anation-wide basis. The standards set by the exchange in terms of market practices,Products , technology and service standards have become industry benchmarks andare being replicated by other market participants. Within a very short span of time,NSE has been able to achieve all the objectives for which it was set up. It has beenplaying a leading role as a change agent in transforming the Indian Capital Marketsto its present form. The Indian Capital Markets are a far cry from what they used tobe a decade ago in terms of market practices, infrastructure, technology, riskmanagement, clearing and settlement and investor service

NCDEX (NATIONAL COMMODITIES AND DERIVATIVES EXCHANGE)

NCDEX started working on 15thDecember, 2003. This exchange provides facilities totheir trading and clearing member at different 130 centers for contract.In commodity market the main participants are speculators, hedgers andarbitrageurs.Promoters of NCDEX areNational Stock Exchange(NSE)ICICI bankLife Insurance Corporation(LIC)National Bank for Agricultural and Rural Development (NABARD)IFFICOPunjab National Bank (PNB)CRISIL

WHY NCDEX? NCDEX is nationalized screen based system which is providing transparent,private and easy services.NCDEX is one of the traditional media which gives online informationNCDEX is one of the Indian commodity exchange, constructed on the basis of the current national institutes the exchange has been established with thecoloration of leading institutes like NABARD, LIC, NSI etc. In India NCDEX has maximum settlement guarantee fund.NCDEX has appointed two exports for checking quality at the time of deliveryFACILITIES PROVIDED BY NCDEXNCDEX has developed facility for checking of commodity and also provides awear house facilityBy collaborating with industrial partners, industrial companies, news agencies,banks and developers of kiosk network NCDEX is able to provide currentrates and contracts rateTo prepare guidelines related to special products of securitization NCDEXworks with bank.To avail farmers from risk of fluctuation in prices NCDEX provides specialservices for agricultural.NCDEX is working with tax officer to make clear different types of sales andservice taxes.NCDEX is providing attractive products like weather derivatives

INTRODUCTION OF SHAREKHAN LTD

ABOUT SHAREKHAN LIMITED Sharekhan Ltd. is one of the leading retail stock broking house of SSKI Group which
is running successfully since 1922 in the country. It is the retail broking arm of the Mumbai based SSKI Group, which has over eight decades of experience in the stock broking business. Sharekhan offers its customers a wide range of equity related services including trade execution on BSE, NSE, Derivatives, depository services, online trading, investment advice etc. The firms online trading and investment site www.sharekhan.comwaslaunched on Feb 8, 2000. The site gives access to superior content andtransaction facility to retail custom ers across the country. Known for its jargon-free, investor friendly language and high quality research, the site has a registered base of over one lakh customers. The content-rich and researchoriented portal has stood out among its contemporaries because of itssteadfast dedication to offering customers best-of-breed technology andsuperior market information. The objective has been to let customers make informed decisions and to simplify the process of investing in stocks.On April 17, 2002 Sharekhan launched Speed Trade, a net-based executableapplication that emulates the broker terminals along with host of otherinforma tion relevant to the Day Traders. This was for the first time that a net-based trading station of this caliber was offered to the traders. In the last six months Speed Trade has become a de facto standard for the Day Trading community over the net. Sharekhans ground network includes over 640 centers in 280 cities in India which provide a host of trading related services. Sharekhan has always believed in investing in technology to build its business. The company has used some of the best-known names in the IT industry, like Sun Microsystems, Oracle, Microsoft, Cambridge Technologies, Nexgenix, Vignette, Verisign Financial Technologies India Ltd, Spider Software Pvt Ltd. To build its trading engine and content. The Morakhiya family holds a majority stake in the company. HSBC, Intel & Carlyle are the other investors. With a legacy of more than 80 years in the stock markets, the SSKI group ventured into institutional broking and corporate finance 18 years ago.Presently SSKI is one of the leading players in institutional broking and corporate finance activities.

SSKI holds a sizeable portion of the market in each of these segments. SSKIs institutional broking arm accounts for 7% of the market for Foreign Institutional portfolio investment and 5% of allDomestic Instituti onal portfolio investment in the country. It has 60institutional clients spread over India, F ar East, UK and US. ForeignInstitutional Investors generate about 65% of the organizations revenue, with a daily turnover of over US$ 2 million. The Corporate Finance section has a list of very prestigious clients and has many firsts to its credit, in terms of the size of deal, sector tapped etc. The group has placed over US$ 1 billion in private equity deals. Some of the clients include BPL Cellular Holding, Gujarat Pipavav Essar, Hutchison, Planetasia, and Shoppers Stop.

PROFILE OF THE COMPANY

Name of the company: Sharekhan ltd. Year of Establishment: 1925 Headquarter: ShareKhan SSKIA-206 Phoenix House Phoenix Mills Compound Lower Parel Mumbai - Maharashtra, INDIA 400013 Nature of Business: Service ProviderServices: Depository Services, Online Services and Technical Research. Number of Employees: Over 3500

Goals:
Our attempts goal is to accomplish top most position in both online and offline medium of trade and also to remain a customer centric organization.

Objective:
To increase the customer base of investors to invest in all kinds of securities. To retain the existing consumers with research backed advice and personalized care the needs of the consumer.

Vision, Mission and Quality Policy:

Vision:
Share khan practices customer centric approach to be the leading broking firm. To be the top most company for providing investment advisory and financial planning service in India.

To be a leading investment intermediary for transaction through both online and offline medium. Froe tradition asset portfolio to retail finance. Enhance transaction handling capability. Develop human capital technology enable products, services, and internal processes with a view or focus on operating efficiency and economy of scale.

Mission:
Research backed advice, which is easy to understand, retail specific and discipline. Total equity solution for the entire investment process. To identify and support initiatives, with are designed to improve the capacity of the poorest of the poor to participate in the large economy. This initiative must be cost effective, capable of large scale replication and should have the potential for both near and long term impact. To leverage technology in order to overcome constraints and enhance the effectiveness of various social initiative.

Quality policy
Integrity Transparency Professionalism Information-product, news, operations Hassle free trading Enjoyable experience

SHAREKHAN LIMITEDS MANAGEMENT TEAM Dinesh Murikya : Owner of the company Tarun Shah : CEO of the company Shankar Vailaya : Director (Operations) Jaideep Arora : Director (Products & Technology) Pathik Gandotra : Head of Research Rishi Kohli : Vice President of Equity Derivatives Nikhil Vora : Vice President of Research

PRODUCTS AND SERVICES OF SHAREKHAN LIMITED The different types of products and services offered by Sharekhan Ltd. are as follows: Equity and derivatives trading Depository services Online services Commodities trading Dial-n-trade Portfolio management Share shops

Fundamental research Technical research SHAREKHANS SERVICES 1. ONLINE SERVICES

a. Online Home b. First Step

c. Classic Account d. Speed Trade e. Dial N Trade 2. SHARE SHOPS 3. MUTUAL FUNDS 4. COMMODITY FUTURES 5. PORTFOLIO MANAGEMENT SERVICES 6. TECHNICAL PORTFOLIO MANAGEMENT SERVICES
7. DEMAT SERVICES

About Sharekhan
SSKI named its online division as SHARE KHAN and it is into retail Broking The business of the company overhauled 4 years ago on February 8, 2000. It acts as a discount brokerage house to a full service investment solutions provider It has a 150 member strong team. It has specialized research product for the small investors and day traders Largest chain of share shops, 103 Franchisees & 17 Branches across India. It has $25m/trades every day. Leading player today with 20% market share Over 8000 online clients The site was also launched on February 8, 2000 and named it as www.sharekhan.com The Speed Trade account of share khan is the next generation technology product launched on April 17, 2002 Speed Trade Plus was launched on October 28, 2002 for trading in Derivatives

It offers its customers with the trade execution facilities on the NSE, for cash as well as derivatives, depository services

Reason to choose sharekhan ltd

With its online trading account one can buy and sell shares in an instant fro many PC with an internet connection. One can get access to its powerful online trading tools that will help him take complete control over his investment in shares. Accessibility Sharekhan provides ADVICE, EDUCATION, TOOLS AND EXECUTION servicesfor investors. These services are accessible through its centers across thecount ry over the internet (through the website www.sharekhan.com) as well as over the Voice Tool. Knowledge In a business where the right information at the right time can translate into direct profits, one can get access to a wide range of information on Sharekhan limiteds content-rich portal. One can also get a useful set of knowledge-based tools that will empower him to take informed decisions. Convenience One can call its Dial-N-Trade number to get investment advice and execute histransactions. Sharekhan ltd. have a dedicated call-centre to provide thisservice via a Toll Free Number 1800-22-7500 & 1800-22-7050 from anywhere in India. Customer Service Sharekhan limiteds customer service team will assist one for any help that one may require relating to transactions, billing, demat and other queries. Its customer service can be contacted via a toll-free number, email or live chat on www.sharekhan.com.

Investment Advice Sharekhan has dedicated research teams of more than 30 people forfundamental and technical researches. Its analysts constantly track the pulse of the market and provide timely investment advice to its clients in the form of daily research emails, online chat, printed reports and SMS on their mobile phone.

SWOT Analysis
Strength 1. 2. 3. 4. 5. Wide range of innovative financial products Intensive research on all industry sectors Strong IT infrastructure Have a one largest network of branches across country Pan India presence with over 1500 outlets serving 950000 customer across 450 cities.

Weakness 1. Penetration limited to urban areas Opportunity 1. growing rural market 2.Earning Urban Youth 3. Educating people about the benefits of investments to increase target audience Threats 1. Stringent Economic measures by Government and RBI 2.Entry of foreign finance firms in Indian Market

Parent Company Sharekhan Financial services pvt. Ltd. Category BFSI

Sector Consumer Financial Services Tagline/ Slogan your guide to the financial jungle USP Indias leading online retail broking house STP Segment Brokerage Target Group Urban and Rural Investors Positioning Complete Investment and Stock trading Solutions

Competition Competitors 1. Reliance Capital 2. Indiabulls

3. Angel Broking

Bank Connection:Sharekhan
has affiliation with 11 banks, which allows its customers to enjoy thefacility of instant credit and transfer of funds from his savings bank account to hisSharekhan trading account. The affiliated banks are as follows: HDFC BANK OBC CITY BANK ICICI BANK UNION BANK OF INDIA INDUSIND BANK IDBI BANK CENTURION BANK OF PUNJAB AXIS BANK YES BANK BANK OF INDIA DIAL-N-TRADE:It is also an exclusive service available to all Sharekhan customers for trading inshares via the telephone. On dialing the toll free number 1800-22-7500 thecustomer will be directed to a tele-broker who will buy or sell shares.

Introduction of portfolio management

A Portfolio Management refers to the science of analyzing the strengths, weaknesses, opportunities and threats for performing wide range of activities related to the ones portfolio for maximizing the return at a given risk. It helps in making selection of Debt Vs Equity, Growth Vs Safety, and various other tradeoffs. Major tasks involved with Portfolio Management are as follows.
Taking decisions about investment mix and policy

Matching investments to objectives Asset allocation for individuals and institution Balancing risk against performance

There are basically two types of portfolio management in case of mutual and exchangetraded funds including passive and active.
Passive management involves tracking of the market index or index investing. Active management involves active management of a funds portfolio by manager or team of managers who take research based investment decisions and decisions on individual holdings.

Portfolio:In terms of mutual fund industry, a portfolio is built by buying additional bonds, mutual funds, stocks, or other investments. If a person owns more than one security, he has an investment portfolio. The main target of the portfolio owner is to increase value of portfolio by selecting investments that yield good returns. As per the modern portfolio theory, a diversified portfolio that includes different types or classes of securities; reduces the investment risk. It is because any one of the security may yield strong returns in any economic climate. Facts about Portfolio
There are many investment vehicles in a portfolio. Building a portfolio involves making wide range of decisions regarding buying or selling of stocks, bonds, or other financial instruments. Also, one needs to make decision regarding the quantity and timing of the buy and sell. Portfolio Management is goal-driven and target oriented. There are inherent risks involved in the managing a portfolio.

The basics and ideas of Investment Portfolio Management are also applied to portfolio management in other industry sectors.

Application Portfolio Management: It involves management of complete group or subset of software applications in a portfolio. These applications are considered as investments as they involve development (or acquisition) costs and maintenance costs. The decisions regarding making investments in modifying the existing application or purchasingnew software applications make up an important part of application portfolio management. Product Portfolio Management: The product portfolio management involves grouping of major products that are developed and sold by businesses into (logical) portfolios. These products are organized according to major line-of-business or business segment. The management team actively manages the product portfolios by taking decisions regarding the development of new products, modifying existing products or discontinue any other products. The addition of new products helps in diversifying the investments and investment risks. Project Portfolio Management: It is also referred as an initiative portfolio management where initiative portfolio involves a defined beginning and end; precise and limited collection of desired results or work products; and management team for executing the initiative and utilising the resources. A number of initiatives that supports a product, product line or business segment, are grouped into a portfolio by managers.

Services of sharekhan of portfolio management 1 Focus on absolute returns: Our Long-short strategies in Index/stock futures and index oriented funds ensure the perfect hedge against high market levels.

2 We charge fees only on profits We charge fees only when you make a profit. Protect PMs has zero AMC or maintenance charges. 3 Systematically timing the market: Pro Tech works by timing the stock market using technical analysis. This is done by picking Stocks/Nifty before the infection points in their trading cycles. 4 Disciplined approaches: While making investments based on market view, care is taken to maintain proportion of weightage for particular product and particular Stock/Nifty. 5 Product Range: Pro Tech PMS has a range of 4 product schemes to choose from based on your risk-return appetites. You can choose between an automated model and a portfolio managed by our fund managers.