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Stock Exchange Online Share Trading At Nirmal Bang

Prepared and presented to




BY SAURABH KUMAR Roll no: 1071470022

Kanpur Institute of Management Studies Unnao


I am neither a research expert nor a trend spotter; I am a management student with foundation of management principles and theories, who is curious about various sectors and its latest happenings.

Definitely, I can‘t ignore the technology, with internet as the backbone and those search engines which helped me in building up this research project.

To being with, I am obliged to Mr. KISHORE BANG and Mr. DILIP BANG (Managing Director‘s Nirmal Bang Securities (PVT) Ltd).who allotted me this interesting topic and with out whose guidance and constructive criticism this repot might have not been completed .I would like to thank Broker, Agents franchise owners and individuals. I appreciate for their cooperation and contributions for helping me in making project factual and information.

I would like to express my heart full gratitude to Mr. GUNJAN SONKER (Relationship Manager), NIRMAL BANG SECURITIES (PVT) LTD. Who helped me in sharpening my thinking by cheerfully providing challenging comments and questions. Without the individuals have provided, this project would have lost much of its refreshing realism. I‘m also thankful to the management & all employees of NIRMAL BANG SECURITIES LTD.

I also express my gratitude to Mr. (Director), Mr.(H.O.D) and ALL FACULTY MEMBERS OF MBA DEPARTMENT OF KANPUR INSTITUTE OF MANAGEMENT STUDIES, UNNAO who have been instrumental in making this report useful one.

Lastly, I would like to thanks to the ALMIGHTY and my parents for their moral and financial support and my colleagues with whom I shared my dad-to-day experiences and received lots off suggestions that improved my work quality.



In the economy for tightening Business nuts and bolt of any company industries or enterprises it is necessary to measure it market position in a certain time interval with ever changing theories and the concept of market. For this assessment we need the robust methodology of survey. Although surveys does not reveal the absolute solution of any objectives, but it provides the inclination towards a good output. Nirmal Bang a good share trading company in Indian market. In this project we compare the future of this company. Find the awareness level, market potential of this company etc. The preparation of this report provides you great pleasure in releasing our work and market experiences in few pages which shows overall and experienced knowledge and the practical approach about the style of a professional and thing which we found various affecting to our marketing and product image. The project termed as ―stock Exchange & Online share Trading at Nirmal Bang” has made an effort to find out the issues concerning with the NIRMAL BANG SECURITIES PVT LTD.

TABLE OF CONTENT: Title page 1-1 Certification from organization Certification from project guide Acknowledgement 2-2 Prefaces 3-3 Executive summary Topic Brief introduction Research methodology Finding & suggestion 6-6 7-8 9-9 10-10 Industry profile & company profile Names of stock exchanges On line share trading in India Stock market Market participants History Importance of stock market Company profile 16-18 11-13 14-15 19-20 21-21 22-23 24-36 37-43 .

Products and services Taxation for Indian resident Demat services Mandatory document for account opening Investor‘s rights and obligation Terms and condition 59-65 66-71 44-51 52-54 55-58 72-83 Internet trading agreement 84-98 Services management of Nirmal Bang 99-101 Research methodology 102-105 Analysis 106-111 Finding and recommendation 112-111 Limitation 115-115 Bibliography 116-116 .


EXECUTIVE SUMMARY: TOPIC: “STOCK EXCHANGE & ONLINE SHARE TRADING AT NIRNAM BANG” The present repot is prepared for the partial of M. analysis on sample and presentation is in the form of diagram and charts. The data collection is an analyzed and some practical tools were applied to get inferences from the survey. In India in good condition.A and as a part of curriculum. At the end of the report limitations.‖ To pursue research area are Lucknow was chosen where the survey conducted through personnel interview. The results are printed in the graphs and diagrams. The survey is an attempt to determine and ―STOCK EXCHANGE & ONLINE SHARE TRADING AT NIRMAL BANG SECURITIES PVT. Ltd. .B. and Glossary that has the technical terms of the report. FAQ. Finally some suggestions with respect to the survey for the future improvement is given to improve the survey because their competitors have also taken up the surveys. Last there is Bibliography. conclusion of the research and Appendix which includes questionnaire and the list of the city where the Sriram insight share brokers Ltd are running. where as second Research Methodology is given which includes samples design. The conclusion is that Nirmal Bang securities Pvt Ltd. The research report has two sections in its first section company and industry profile is given. SWOT analysis.

Analysis of need and satisfaction of distribution of financial services.Objectives of study:  To understand & analyze the marketing strategies and analyze online Trading of NIRMAL BANG. .  To study some of the mutual funds schemes and analyze them observe the funds management process of mutual funds.  To discuss about the market trends of Mutual Funds investment.  Explore the recent developments in the Mutual Funds in India. To give an idea about the regulations of Mutual Funds.  To improve the format of daily sales report (DSR)  To get the Demat account opened of potential customers in favor of nirmal Bang.  To give a brief idea about the benefits available from Mutual Funds investment and idea of types of schemes available.

agents. . RESEARCH APPROACH: Depth study oft he investor‘s perception with respects to equity investments. I used primary data from the different brokers. CONTRACT METHOD: Personal Structured Interview. and secondary data from Shriram insight Share Brokers Ltd. TYPES OF QUESTIONS: open and close-ended question. RESEARCH DESIGNE: This research is description of the state of affairs.RESEARCH METHODOLOGY: To achieve the objectives of studying the stock market data has been collected Research Methodology carried fir this study can be two types. RESEARCH INSTRUMENT: structured personal interview. DATA SOURCES: In this research. So in this research I used the description research. SAMPLING: public interested in investing their savings. SAMPLE SIZE: 100 SAMPLE PROCEDURE: Judgment samplings. retailers and investors. as it exists at present.


During my project analysis I was very keen to find some key areas which need to be taken care seriously in the future because these are causing dissatisfaction among distributors.

Most of distribution felt dissatisfaction with there brokers but some of te disappointing areas are-

1. More exposure: Most of distributors want some more exposure for them clients from their share broking companies. Nirmal Bang is now providing super exposure p to 15 of the margin (cash segment) the step like this really creates satisfaction for the distributors.

2. Brokerage problem: Some companies have very high brokerage chares which create differences of market share of different companies and also dissatisfaction among distributors.

3. Fewer offers: Most of companies lag behind in giving time to time offers in order to attract new customers.


This stock exchanges, Mumbai, popularity known as ―BSE‖ was established in 1875 as ―The native share and stock brokers associations‖, as a voluntary non-profit making association. It has an evolved over the years into its status as the premiere stock exchanges in the country. It may be noted that the stock exchanges the oldest one in Asia, even older than the Tokyo Stock Exchanges, which was founded in 1878. The exchanges, while providing an efficient and transparent market for trading in securities, upholds the interests of the investors and ensures redressed of their grievances, whether against the companies or its own members brokers. It also strives to educate and enlighten the investors by making available necessary informative inputs and conducting investor‘s education programmers. A governing board comprises of elected directors, 2SEBI nominees, 7 public representatives and an executive director is the apex body, which decides the policies and regulates the affairs of the exchanges. The executive director as the chief executive officer is responsible for the day today administration of the exchanges. The average daily turnover of the exchange during the year 2000-01 (April-March) was Rs 3984.19 crores and average numbers of daily trades 5.69 Lakhs However the averages daily turnover of the exchanges during the year 2001-2002 has declined to Rs. 1224.10 crores and number of average daily trades 5.69 Lakhs. The average daily turnover of the exchanges during the year 2001-2003 has declined and number of average daily trades during the period is also decreased. The Ban on all deferral products like BLESS AND ALBM in the Indian capital markets by SEBI with effect from July 2, 2001, abolition of account period settlements, introduction of compulsory rolling settlements in all scripts trades on the exchanges. With effect from dec31, 2001 etc. have adversely impacted the liquidity and consequently there is a considerable decline in the daily turnover at the exchanges. The average daily turnover of the exchanges present scenario is 110363 (Laces) and number of average daily trades 1057(laces).

debentures and government securities since infrastructure and trading facilities are provided. NSE is a national market for shares PSU bonds. banks and SEBI capital markets Ltd. insurances companies. The international securities consultancy (ISC) of Hong Kong has helped in setting up NSE. It has been set up to strengthen the move towards professionalization of the capital market as well as provide nation wide securities trading facilities to investors. A two tier administrative set up involving a company board and a governing aboard of the exchanges is envisaged. ISE has prepared the details business plans and installation of hardware and software system. infrastructure leasing and financial services Ltd and stock holding corporation Ltd. . NSE is not an exchange in the traditional sense where broker own and manage the exchanges. The promotion for NSE were financial institutions.NATIONAL STOCK EXCHANGES: The NSE was incorporated is now 1992 with an equity capital of Rs 25 crores.

National stock exchanges. Over the counter exchange of India. Madras stock exchanges association Ltd. Integrated stock exchange. Ludhiana stock exchanges. Ahmadabad share and stock brokers association. Jaipur stock exchanges. U. Pune stock exchanges. . Hyderabad stock exchanges.NAME OF THE STOCK EXCHANGE:                         Bombay stock exchange. Vsdodard stock exchanges Ltd. Maghad stock exchanges Ltd. Bangalore stock exchanges. Indore stock brokers association Ltd. Delhi stock exchange association Ltd. Coimbatore stock exchanges Ltd. Cochin stock exchanges. Calcutta stock exchange. Bombay saurastra kuth stock exchange Ltd. Gawhati stock exchanges Ltd. The Meerut stock exchanges. Patana. Bhuveneshwar stock exchange association.P stock exchanges. Mangalore stock exchanges Ltd.


it has also made life at the easy at the front end. dishonored contacts. one had to talk to a broker who told you the quotes. it has opened up investing and trading to segment that never before participated in it. Then trading became electronic. There was no way of knowing if your trade was made. . New issues are today. It was a familiar story of might is right. First it was a few of the blue chips. exclusively electronics. In the physical delivery work. There was no way of knowing if the quote was right. from the physical world shares move to digital world at the NSDL.ONLINE SHARE TRADING IN INDIA: Now with HDFC. The broker could say that this was the best price I got and nobody would be wiser. Now. By my rough estimates during my experiences in India tech trading in India. ICICI direct. big truck (brokers) ruled the market & there were potholes and pitfalls in the shape of bad deliveries. especially if you made a good call (Bad call. It has opened the market to a whole segment of people. Earlier. share khan. online trading forms about pct in terms of volume (I think the figure is higher than 10 pct in the retail segment) Some of these have gone on to become the biggest‖ brokers‖ in India. Somewhere in the nineties there was a whole move to make share electronics & fungible (like money notes. Shriram insight and other brokers. then it was most of the blue chips and slowly it has taken over most of the market. Share trading in India has gone online. Slowly. investing in share was done by a limited few most of who applied in an IPO and stuck with till they wanted money. And move them to the dematerialized (demat) form. was like driving on Indian road. a share is a share. Starting at about 2 pct. the share market has changed. If digitization took care of the back end. almost inevitably got made). Unlike the highways which have remained out of the reach of the Aam admi. Until the arrival brokerage in about 2000 or so. not only online trading made life easier for these peoples. fakes & what not.

You would not know if the share came from his account or form the market. You would not know if the shares were true for the small investors. Odd lots (which we inevitably awarded during splits, mergers were as good as stock which would never got sold or the broker would purchase them at a price way below the market price.

Industry about 70% of employees are have online active accounts, many of which were opened in the ESOP era seems like a long while back), more than 80% of these investors are actives traders, the number of day traders are less.

But a small chuck of these also dabbles in the future and options market. Besides this obvious segment which is connected to the online would all days long from the cubicles, there are other segments which have shown interest in trading due to its case.

Housewives retired professional and even small businessman. What was hitherto a male dominate sphere also has quite a fem women into trading. The regional stock exchange which were the way to route trades in the olden days, are now almost defunct with BSE and NSE (NSE more than BSE) holdings way.

Earlier investors were mostly from the bigger cities. With online trading, it has opened avenues for investors from the parts of the country with an internet connection.

A few months ago, Business world (Registration/subscription regd.) India reported that: 46 pct of the trades were done by the top 100 brokers in 1996-97. Today‘s it is about 66 pct. Going online via these professional driven by technology is a great way to cut the uncertainties caused by the middleman out of the business of share trading and make lives easier for the investors.

There will be more competition in this space as brokers try to take over accounts of other brokers. More specialized and personalized services will be in the offing as the market expands and as smaller brokers try to survive and evolve into niche players.

A stock market is a public market for the trading of company stock and derivatives at an agreed price these are securities listed on a stock as well as those only traded privately.

The since of world stock market was estimated at about $36.6 trillions US at the beginning of October 2008. The total world derivatives market has been estimated at about $791 trillion faceoff nominal value.

11 times the size of the entire world economy. The value of the derivatives market, because it is stated in terms of national values, cannot be directly compared to a stock or a fixed income security, which traditionally refers to an actual value.

Moreover, the vast majority PF derivatives ‗cancels‘ each other out (i.e., a derivatives ‗bet‘ on an event occurring is offset by a comparable derivatives ‗bet‘ on event not occurring).

Many such relatively illiquid securities are valued as market to model, rather than an actual market price. The stock are listed and traded on stock exchanges which are entities of an corporation of mutual organization specialized in the business of bringing buyers and sellers of the organization to a listing of stock and securities together.

The stock market in the united states in the united states includes the trading of all securities listed on the NYSE Euro next, the NASDAQ, the Amex, as well as on the many regional exchanges, e.g. OTCBB and Pink sheets. European examples of stock exchanges included the London Stock Exchange, the Deutsche Borse.

However. . mutual funds. market have become more ―institutionalized‖ buyers and sellers are larger institutions (e. both long family histories (and emotional ties) to particular corporations. hedge funds investors groups.g. worldwide. buyers and sellers were individual‘s investors. exchange traded funds. Pension funds. banks and various other financial institutions). insurance companies . the government was responsible for ―fixed‖(and exorbitant) fees being markedly reduced for the ‗small‘ investors. corporate governance (at least in the west) has been very much adversely affected by rise of (largely ‗absentee‘) institutional ‗owners‘ . Overtime. index funds. but only after the large institutions had managed to break the brokers‘ solid fronts on fees. The rise of the institutional investors has brought with t some improvement in market operations. but only for large institutions. such as wealthy businessman.MARKET PARTICIPANTS: A few decades ago. This. (They then went to ‗negotiated‘ fees.

as most of the merchants of that period. Because these men also trade with debts. A common misbelieve is that in late 13th century Bruges commodity traders gathered inside the house of a man called Van der Beurze. disproving the belief that these were originally invented later by Italians.HISTORY: Historian Fernando Braudel suggested that in Cairo in the 11th century. Until then. which let shareholders invest in business venures and get a share of their profits or losses. they could be called the first brokers. but actually. Muslim and Jewish merchant and already set up every form of trade association and had knowledge of many methods of financial dealings. and in 1309 they became the ―Bruges Beurse‖ institutionalizing what had been. This was only possible because these were independent city states not ruled by a duke but a council of influential citizens. an informal meeting. Venetian market began to trade in government securities. . As their primary place for trading. The idea quickly spread around Flanders and neighboring countries and ―Beurzen‖ soon opened in Ghent and Amsterdam. In 12th century France the courratiers de changes were concerned with managing and regulation the debts of agricultural communities and behalf of the bank. The Dutch later started joint stock companies. the Van der Beurze had Antwerp. In 1351 the Venetian government outlawed spreading rumors intended to lower the price of government securities during the 14th century. In the middle of the 13th century. the family Van der Beurze had a building in Antwerp where those gathering occurred.

2001). . Germany and France. Canada. Japan. with the world‘s biggest market being in the United stated. The Dutch ―pioneered short selling.In 1602. much as we know them‖ (Murray Sayle. It was the first company to issue stock and bonds. UK. the Dutch East India Company issued the first share on the Amsterdam stock exchange. There are now stock markets in virtually every developed and most developing economy. and merchant banking. China. debt-equity swaps. Units trust and other speculative instrument. The Amsterdam stock Exchange (ro Amsterdam Beurs) is also said to have been the first stock exchange to introduction continuous trade in the early 17th century. option trading. London Review of books XXIII. April 5.7.‖Japan Goes Dutch‖.

the stock market is often considered the primary indicators of a country‘s economics strength and development. central banks tend to keep an eye on the control and behavior of the stock market and. tend to be associated with increased business investment and vice versa. This allows businesses to be publically traded or raised additionally capital for expansion by selling share of ownership of the company in a public market. in general. The liquidity that an exchange provides affords investors the ability to quickly and easily sell securities. on the smooth operation of financial system functions. Rising share prices. Financial stability is the raison d‘être of central banks. and can influence or be an indicator of social mood. In fact. for instance.Importance Of Stock Market: Function and purpose The stock market is one of the most important sources for companies to raise money. compared to other less liquid investment such as real estates. . Therefore. History has shown that the price of shares and other assets is an important part of the dynamic of economies activity. Share prices also affect the wealth of household and their consumption. An economy where the stock market is on the rise is considered to be an up and coming economy. This is an attractive feature of investing in stocks.

and guarantee payment to the seller of a securities. including the stock markets. there can be benefits to the market‘s citizens. rather just short-term profits to American business man and the Chinese. In this way the financial system contribution to increased prosperity. Chinese firms with no significant value to American society to just name one segment. The financial system in most western countries has undergone a remarkable transformation. Such as. when foreign company has a presence in the new market. The general public‘s heightened interest in investing in the stock market. Relation of the stock market to the modern financial system. In order for the stock markets to truly facilitate economy‘s growth via lower costs and better employment. and the Chinese company which yields funds to invest in china. The smooth functioning of all these activities facilities economies growth in that lower costs enterprise risks promote the production of goods and services as well as employment. A portion of the funds involved in saving and financing bank lending and deposit operation. meeting that they collect and deliver the shares. is absolute discretion. This profit USA banker on Wall Street. One features of this development is disintermediation. This discretion has insulated Canada to some degree to worldwide financial condition. great attention must be given to the foreign participants being allowed in. An important aspect of modern markets. For example. This eliminates the risk to an individual buyers or seller that the counterparty could default on the transaction. either directly or through mutual funds. Canada‘s largest stock exchange. Conversely. as they reap large commissions from the placement. there are very few large foreign corporation listed on the Toronto Stock exchange TSX. Statistics show that in . although. in the USA stock we see more unrestrained acceptance of any firm than in similar markets. however.Exchanges also act as the clearinghouses for each transaction. Yet accrues no intrinsic value to the long-term stability of the American economy. has been an important component of this process.

such as the European Union. the United State.recent decades share have made up an increasingly large proportion of household‘s financial assets in many countries. deposit account and other very liquid assets with little risk made up almost 60 percent of households‘ financial wealth. . compared to less than 20 percent in the 2000s. in Sweden. mutual funds. pension funds. In the 1970‘s. etc. In all developed economies system.g. The trend towards form of saving with a higher risk has been accentuated by new rules for most funds and insurance. e. permitting a higher proportion of shares to bonds.. The major part of this adjustment in financial portfolio has directly to shares but a good deal now take the form of various kinds of institutional investment for groups of individuals. hedge funds. Japan and other developed nations. the trend has been the same: saving has moved away from traditional (government insured) bank deposits to more risky securities of one sort or another. Similar tendencies are to be found in other industrialized countries. insurance investment of premiums.

but also the economy on a large scale.. . Television commentators. This something that could affect not only the individual investors or households. At the same time. or have acquired other ‗risky‘ investment (such as ‗investment‘ property. Sometimes there appears to be no rhyme or reason to the market. i. and market strategies are all over taking each other to get investors ‗attention‘. Stock prices fluctuated widely. are exchanging questionable and often misleading tips.e. investors find it increasingly difficult to profit. Stock prices skyrocket with little reasons. only folly. analysis. immersed in chat rooms and message boards. then plummet just as quickly. Individual Investors. This is certainly more important now that so many newcomers have entered the stock market. in marked contrast to the stability of (government insured) bank deposits or bonds. And people who have turned to investing for their children‘s education and their own retirement become frightened. despite all this available information. Yet. The following deals with some of the risks of the financial sectors in general and the stock market in particular. and Financial Risk: Riskier long-term saving required that an individual possess the ability to manage the associated increased risks. This is a quote from the prefaces to a published biography about the long-terms value oriented stock investors warren Buffett.) With each passing year. financial writers. the noise level in the stock market rises.The Stock Market. individual investors. real estate and collectables.

having priced in all public knowledge.knows as ‗hard‘ EMH. However. .also predicts that little or no trading should take place. in the sense that prices in the aggregate tends to follow a Gaussian distribution.e. a ‗soft‘ EMH has emerged which does not required that prices remain at or near equilibrium.) It seems also to be the case more generally that many price movements (beyond that which are predicted to occur ‗randomly‘) are not occasioned by new information: a study of the fifty largest one-day share prices movements in the United States in the post-war period seems to confirm this.The behavior of the stock market: From experiences we know that investors may ‗temporarily‘ move financial prices away from their long terms aggregate price ‗trend‘ (positive or up trends are referred to as bull markets: negative or down trends are referred to as bear markets.. since prices are already at or near equilibrium.) The ‗hard‘ efficient-market hypothesis is sorely tested by such events as the stock market crash in 1987.6 percent—the largest-ever one-day fall in the United States. This events demonstrated that share prices can fall dramatically even though.) Over-reaction may occur so that excessive optimism (euphoria) may drive prices unduly high or excessive pessimism may drive unduly low. to this day. contrary to fact. (But note that such events are predicted to occur strictly by chance. although very rarely.) (But this largely theoretic academic viewpoint. it is impossible to fix a generally agreed upon definite cause: a thorough search failed to detect any ‗reasonable‘ development that might have accounted for the crash. but only that market participants not be able to systematically profits from any momentary market ‗inefficiencies‘. when the Dow Jones index plummeted 22. New theoretical an empirical arguments have since been put forward against the notion that financial markets are ‗generally‘ efficient (i.

in any of its current forms. reducing his (psychological) risk threshold. just noise. As social animal. An example with which one may be familiar is the reluctance to enter a restaurant that is empty. some research has shown that change in estimated risks. Psychological research has demonstrated that peoples are predisposed to ‗seeing‘ patterns. the probabilities are known and largely independent of the investment decision of the different players. . theoretically could cause financial markets to overcorrect. But the best explanation seems to be that the distribution of stock market prices is non-Gaussian (in which case EMH. (something like seeing familiar shapes in clouds or ink blots. it is now easy to stick to an opinion that differs markedly from that of a majority of the group.) Other research has shown that psychological factors may result in exaggerated (statically anomalous) stock prices movement (contrary to EMH which assumes such behaviors‘ cancel out‘). would not be strictly applicable. and often will perceive a pattern in what is.Various explanation for such large and apparently non-random prices movement have been promulgated. the game becomes more like poker (herding behavior takes over). A period of good returns also boosts the investor‘s self-confidence.) In the present context this means that a succession of good new items about a company may lead investors to overreact positively (unjustifiably driving the prices up). For instance. In one paper the authors draw an analogy with gambling. Another phenomenon—also from psychology—that works against an objective assessment is group thinking. In normal times the market behaves like a game of roulette. however. and the use of certain strategies. in fact. In times of market stress. people generally prefer to have their opinion validated by those of other in the group. The players now must give heavy weight to the psychology of other investors and how they are likely to react psychology. such as stop-loss limit and value at Risk limits.

prediction of a DOW average below 5000 were quite common). is quite unforgiving of amateurs. the media amplified the general euphoria. less than 1 percent of the analysis recommendation had been to sell (and even during the 2000-2002 bear market. with reports of rapidly rising share prices and the notion that large sums of money could be quickly earned in the so called new economy stock market. In the run up to 2000. as any other business. with reports of rapidly rising share prices and the notion that large sums of money could be quickly earned in the so called In the run up to 2000. Inexperienced investors rarely get the assistance and support they need. the media amplified the general euphoria. In the period running up to 1987 crash. so that by summer of 2002. (And later amplified the glom which descended during the 2000-2002 bear market.The stock market. . the average did not above 5%).

Behaviorists argue that investors often behave ‗irrationally‘ when making investment decision thereby incorrectly pricing securities. 2008. Emotion can drive prices up and down. leaving the prices of stock determined.42 points or 11 percent.Irrational behavior: Sometimes the market seems to react irrationally to economic or financial news. However. are opportunities. momentary hysteria. . since often such has been anticipated. in turn. rumors euphoria and mass panic. This causes market inefficiencies. the whole notion of EMH is that these non-rational reactions to information cancel out. this occurred on October 12. but generally only briefly. Over the short-term. and the reasons for buying and selling are generally obscure. even if that news is likely to have no real effect on the technical value of securities itself. which. people are generally not as rational as they think. to make money. and a counter reaction may occurs if the news is better (or worse) than expected. But this may be more apparent than real. The Dow Jones industrial Average biggest gain in one day was 936. making the stock market behavior difficult to predict. stock and other securities can be battered or buoyed by any number of fast market-changing events. Therefore. as more experienced investors (especially the hedge funds quickly rally to take advantage of even the slightest. the stock market may be swayed in either by press releases.

The Dow Jones industrial lost 50% during this stock market crash. and get into the market when it is low. In the prefaces to this edition.‖ Price-Earnings ratios as predictors of twenty-year returns based upto the plot by Robert shiller. and selling twenty years-did do well when prices were low relative to earnings at the beginning of the ten years. 2nd. a reason for stock market crashes is also due to panic and investing public‘s loss of confidence.1929 on Black Thursday. as it has been recently. Earning. Long-term investors would be well advised. In parallel with various economics factors. at this writing [2005]. ―The stock market has not come down to historical levels: the prices-earnings ratio as I defined it in his book is still. far higher than the historical average…. the stock market crash of 1973-4. and so they do not make conservative preparation for possible bad outcomes. There have been a number of famous stock market crashes like the Wall Street crashes of 1929. The horizontal axis shows the real price-earnings ratio of the S&P composite stock price index as computed in Irrational Exuberance (inflation adjusted price divided by the prior ten-year mean of inflation-adjusted earning). individually. The vertical axis shows the geometric average real annual return on investing in the S&P composite stock prices index. from irrational exuberance. in this mid-20s. Often. stock market crashes end speculative economics bubbles.Crashes: Robert shiller‘s plot of the S&P composite Real prices. There have been famous stock market crashes that have ended in the loss of billions of dollars and wealth destruction on a massive scale. An increasing number of people are involved in the stock market. reinvesting dividends. and the stock market crashes 2008. and interest Rates. to lower their exposer to the stock market when it is high. It was the beginning of the Great depression.people still place too much confidence in the market and have too strong a belief that paying attention to the gyration in their investment will someday make them rich.‖ Stock market crash: A stock market crash is often defined as a sharp dip in share prices of equities listed on the stock exchanges. the Black Monday of 1987. especially since the social security and retirement plans are being increasingly privatized and linked to stocks and bonds and other elements of the market. Dividends. the Dot-com bubble of 2000. . Shiller warns.. One of the most famous stock market crashes started October 24.

In the United State the SEC introduction several new measures of control into the stock market in an attempt to prevent a re-occurrence of the events of Black Monday. 1929. . Thus. 1987 --.8%. Computer systems were upgrades in the stock exchanges to handle larger trading volumes in a more accurate and controlled manner. trading in stock exchanges worldwide was halted. The crash in 1987 raised some puzzles—main news and events did not predict the catastrophe and visible reasons for the collapse were not identified. the theory of market equilibrium and the hypothesis of market efficiency. namely. The circuit breaker halts trading if the Dow declines a prescribed number of points for a prescribed amount of time. This event not only shook the USA. The names. ―Black Monday‖ and ―Black Tuesday‖ are also used for October 28-29. stock option and the futures markets.Black Monday.6% after completing a 5 year continuous roses in share prices. but quickly spread across the world.  New York Stock Exchange (NYSE) circuit breakers.8%. The SEC modified the margin requirement in an attempt to lower the volatility of common stocks. This event raised question about many important assumptions of modern economics. and in Great Britain lost 26.5%. This halt in trading allowed the Federal Reserve System and central banks of other countries to take measures to control the spreading of worldwide financial crisis. in Hong Kong lost 45. This followed terrible Thursday –the starting day of the stock market crash in 1929. the theory of rational human conduct. stock exchanges in Australia lost 41.. the Dow Jones fell by 22. For some time after the crash. since the exchanges computers did not perform well owing to enormous quantity of trades being received at one time. in Canada lost 22. by the end of October.4%. On Black Monday itself.Another famous crash took place on October 19. The New York Stock Exchanges and the Chicago Mercantile Exchange introduction the concept of a circuit breaker.

the traders borrow stock (usually from his brokerage which holds it‘s client‘s shares or its own share on account to lend to short sellers) then sells it on the market. making money if the price fell in the meantime or losing money if it rose.. Short selling  In short selling. Such indices are usually market capitalization weighted. derivatives may be used to control large blocks of stock for a much smaller of amount of money than would be required by outright purchases or sale. hoping for the price to all.  Leveraged strategies  Stock that a traders does not actually own may be traded suing short selling.\    .Stock market index  The movement of the prices in a market or sections of a market are captured in price indices called stock market indices.g. of which there are many. e. or. Hence most markets either prevent short selling or place restriction on when and how a short sale can occur. This strategy may also be used by unscrupulous traders to artificially lower the price of a stock. The trader eventually buys back the stock. exiting a short position by buying back the stock is called ―covering a short position‖. margin buying may be used to purchase stock with borrowed funds. S&P. the FTSE and the Euro next indices. with the weight reflecting the contribution of the stock of the index are reviewed frequently to include/exclude stocks in order to reflects to reflects the changing business environment. The practice of naked shorting is illegal in most (but not all) stock markets.

.8% increase over the $389 billion raised in 2003. and with or wit out the margined securities or any others within the account may be sold by the brokers to protect its loan position.    New issuance:  Global issuance of equity and equity-related instrument totaled $505 billion in 2004. Most industrialized countries have regulation that requires that if the borrowing is based on collateral from other stock the trader owns outright. trader borrows money (at interest)to buy a stock and hopes for it to rise. Regulation of margin requirement (by the Federal Reserve) was implemented after the crash of 1929. Middle East and Africa (EMEA) increased by 333% from $9 billion to $39 billion. Initial public offer (IPOs) by US issuers increased 221% with 233offering that raised $45 billion. Other rules may include the prohibition of free-riding: putting in an order to buy stocks without paying initially (there is normally a three-day grace period for delivery of the stock. if you want to make a $100 investment. and there is often a maintenance margin below the $500).  A margin call is made if the total value of the investor‘s account cannot support the loss of the trade. you need to put up$500. This investors is responsible for any shortfall following such forced sale). speculators typically only needed to put up a little as 10% (or even less) of the total investment represented by the stocks purchased. the margin requirements have been 50% for many years (that is.  (Upon a decline in the value of the margined securities additional funds may be requires to maintain the account‘s equity. and IPOs in Europe. a 29.) But then selling them (before the three-days are up) and using part of the proceeds to make the original payment (assuming that the value of the stocks has not declined in the interim).Margin buying:  In margin buying.  In the United State. it can be a maximum of a certain percentage of those other stocks‘ value. Before that.

 The principle aim of this strategy is to maximize diversification. large arrays of fiscal obligation are taxed for capital gains.S. . or that tax free stock market operations are useful to boost economic growth. One holds a weight or unweight portfolio consisting of the entire stock market or some segment of the stock market (such as the S&P 500 or Wilshire 5000).  One examples of a technical strategy is the Trend following method. etc. in the U. ―How do I know money investing?‖ There are many different approaches. it could be assumed that taxation is already incorporated into the stock prices through the different taxes companies pay to the state.  Additional.Investment strategies:  One of the many thing people always want to know about the stock market is. in particular in the stock market.  Technical analysis studies prices action in market through the use of charts and quantitative techniques to attempt to forecast prices trends regardless of the company‘s financial prospects. Taxes are charged by the state over the transactions. these fiscal obligations may vary from jurisdiction to jurisdiction because. among other reasons. has averaged nearly 10% year. since World War II).  However. general economic conditions. minimize taxes from too frequent trading and ride the general trend of the stock market (which. business trends. dividends and capital gains on the stock market. two basic methods are classified as either fundamental analysis or technical analysis.  Fundamental analysis refers to analyzing companies by their financial statements founds in SEC Filing. many choose to invent via the index method. used by John W Henry and risk control and diversification. Taxation:  According to much national or state legislation. compounded annually.


” Core value:  “RESPECT OUR COLLEAGAUES AND THE BUSINESS ITSELF. .     MISSION: “To work together with integrity and make customer feel valued. IPOs.” Vision:  “TO CREATE VALUABLE RELATIONSHIPS AND PROVIDE THE BEST FINANCIAL SERVICES MOST PROFESSIONAL. depository services and PMS. create an environment of unmatched to client. insight and most important. Kishore Bang who bring forward industry expertise. mutual fund.ABOUT NIRMAL BANG GROUP:   Founded in 1986 by Sri Nirmal Bang Group is recognized as one of the largest retail broking houses in India. Our retail and institutional clients have access to product such as equities. national commodity & Derivatives Exchanges limited (NCDEX). commodities. we have grown to become a successful as well-respect firm of highly qualified professional. We are registered members of the Bombay Stock Exchanges limited (BSE). Throughout our history. The group is headed by Mr. providing an array of financial products and services. Multi Commodity Exchanges of India limited (MCX). derivatives. we have fostered one overriding purpose each client with personal services and quality work by adhering to the principal. Dilip Bang and Mr. National Stock Exchanges of India limited (NSE). currency derivatives. insurance. National Multi Commodity Exchanges of India limited (NMCE) and MCX stock Exchange limited and also depository participants of NSDL and CDSL.

research and financial strength to help achieve his goals. Able team  We have developed a strong and enduring team by recruiting from leading graduate and postgraduate universities and promoting from within. Our professionals are always ‗on call‘. We believe such service is essentials for delivering solution and constructive relationship. we become an professional partners. responsiveness and a point of easy access to the firm. clients today require personalized solution and greater flexibility and responsiveness than ever before. each of our clients is assigned a specific team member who ‗owner‘ the relationship. as a long-term relationship. no matter what size. providing continuity. we are also equipped to handle commodity trading facility as well as currency derivatives and have access to a wide range of financial services like IPOs. We provide them services throughout the year and not just at the end of the year. creating opportunity. We value each client. And we seek to provide unmatched services to each client and place him as a partner at the center of everything we do. Timely services  In an increasingly competitive environment. Our team work together to provide superior results to our client. mutual funds and insurance. .WHY CHOOSE US? CLIENT FOCUS  Client relationship from the core of our business. From the very beginning of the relationship. In the process. we work closely with every client to identify his financial goals and risk tolerance levels and leverage our strength of the product offering. At the same time. adding value and transform vision into reality.  Diverse services offering  In addition to traditional broking services.

MPLS and internet. franchises and all our clients. Our online trading portal at www. INFRASTURUCTURE: We believe or best infrastructure gives a significant advantage allowing us to provide efficient. Client interface: We have trading terminal (both direct and indirect). integrity and confidentiality. Our technology supports everything from executive trades and managing our investors of stocks to communicating up-to-the-second information to our clients and monitoring for compliance. The high-end IBM serves with sophisticated security features that we use caters to trading points across the country. transparent and qualitative services.Culture  We strive to maintain standards at all times and lay emphasis on honesty. This also gives u rte advantage of scalability in terms of location and size of our planned operations. Our entire centers across the country are connected through our own network. online payment gateways and automatic password mailer . We have India‘s best single screen Multi Exchanges Trading Software platform. net trading portfolio tracking tool. We speak and act to ensure transparency at all levels and in everything we do. The financial strength of the group helps in future building the network and infrastructure to cater to the larger market. Our websites www.nirmalbang. multi-features graphs. online monitoring. information and various research reports facilitating quick decisionmaking. leased ISDN lines and LAN is comprehensive and provides online feeds. control terminal (administration terminals) and back office support terminal (settlement terminal) across all location and centers. Investors also have access to a wide range of financial news. We provide telephonic and chat support for technical and functional issues of branches. net trading and provides online feed.nirmalbang. Financial strength  The strength of our balance sheet is such that it gives greater confidence to all our retail and institutional clients in detail with is equipped with facilities like all segment broadcasts.

help our clients to determine the price at which they buy and /or sell. A well-equipped risk management department ensures that the delinquency rates are minimal. They have a strong experience in trade execution and understanding of order flow dynamics. Experienced professional: Our teams of professional consist of individual with significant experience in securities trading. market structure. support units to ensure delivery notes. trading technology and portfolio management. Our online position monitoring system ensures better risk management and surveillance from our head office as well as branches and franchises. It user-friendly navigation allows easy viewing of trading accounts. which are linked to the trading platform. It has the capacity to process over one lakh traders in a five minute frame. we use the lidha Didha system of Apex Soft cell Pvt. Our people from them cornerstone of the business and their expertise and motivation delivery of exceptional solution and services to all our clients. We also have the requisite infrastructure needed to handles STP. . short-terms and long-term tax reports. This is one of the top most back office software in the industry. depository accounts and research reports. Internal control: Compliance and internal control play a major role in determining business strategies as well as day-to-day operation of the group. which is used to generate activity reports. bills and ledgers of trading accounts and cash management services for efficient and effective fund management within the group.utility for better security. Ltd. Our operation teams has an easy-to-navigate client login system. The website also has a provision for creating portfolios and monitoring them on a regular basis. holding and portfolio valuation reports as well as trading to delivery activity reports. while efficient risk management software provides online MTM margin data to branches and franchisees. This combined with technical analysis of market momentum. Our efficient back-up system and software have been developed specially for branches and channel partners with a capacity to handle numerous transactions. upload and download and download information to or from exchanges. bank and depositories. Our ‗wealth trackers‘ module helps investors in getting ready updates n their investment so that they can know the changing trends of the markets and the impact of the same on their portfolio. Back office: For back office operations.

Most of all. 28 lakh investors. property development. 8000 employees (approx). risk management. person-to-person relationship that keeps delivering true added value. the Group views every employee as a potential partner in business. 7.500 crore (approx) Nirmal Bang. Features of this include total empowerment of its employee. is the stock-Broking arm of the Rs. companies and individual stocks. we are the first choice for our clients because we among the very best at trade executive solution and assets management services. Our research reports are backed by in-depth research and analysis of emerging as well as current market trends. properly. Our team of experienced fundamental research and technical analysts provide reports on industries. Nirmal Bang. Besides. Consider these: Equity* /commodity/ currency*/mutual fund/IPO/PMS/insurance/DP products. With over 450 branches. sectors. About Nirmal Bang: Nirmal Bang Securities Pvt Ltd. Group Companies has also been instrumental in creating innumerable indirect jobs in the communities they serve. Research Expertise: Our research team is headed by two senior research analysts who have more than 15 years of experience in this field. our research analysts also appear on leading business news channel where they share their insights on the market. each and every professional is focused on turning the initial trade or investment into a collaborative. . decentralized decisionmaking process and freedom of action.We believe. industrial investment. distribution of investment products. At Nirmal bang. Nirmal Bang Group‘s business strives the largest number of common people. with evolved into a premier financial supermarket providing a host of services including stockbroking. insurance products and consumer finance. Management philosophy: Nirmal Bang Group‘s business ventures are highly successful due to our Management philosophy.

reliability and personalized services. Technology: Stock-broking being a process intensive activity. speed. the Company is managed by a highly motivated. which enables clients to obtain up to date information online at the click of a button. round-the-clock system availability and system securities are of paramount importance and technology forms the backbones of the business. Our continuous strive to provide best services to our clients.. each client at Nirmal Bang is special.s. results in receipt of not a single Arbitration Award against the company since its inception. MBA. accounts. With the manpower strength of over 1100 employees. viz.. This is why Nirmal Bang is technology driven. We boast of state-of-the-art technology and an inhouse team of highly competent software and networking engineers who constantly review system and procedures to ensure operational efficiency. We have a strong and vibrant workforce in every field or our activity. All our branches are connected through Wide Area Network (WAN) and are served by a centralized back office processing system. marketing or networking. Customer Focus: Despite a rapidly expanding client base and a dizzying increase in transaction volumes. convenience. etc with proven track records. system. We specialize in building long term relationship with our customers by providing them with the four things they desire most. accuracy.Human Resources: Human resources is the key to any services sectors industry. . Engineers. issues such as speed. be it research. qualified & talented team of professional qualified CA‘s.


you have to place (ensure availability of limit) 100% of the order value. you can leverage on your trading limit by taking buy/sell positions much more than what you could have taken in cash segment. derivatives (Future and Option) and other financial products. However. However. In case you have the option to take/give delivery of buy/sell position respectively if you have sufficient cash/securities to do so. . Simply put. you need to have shares in your Demat account. you make profit. we offer you products for every investment need of yours. during the course of the settlement cycle. Trading in shares:  Nirmal Bang offers you various options while trading in shares. mutual funds. With margin trading. while to sell shares. the risk profile of your transaction goes up.A. At present. you take buy/sell position in stocks(s) with the intention of acquiring off the position within the same settlement cycle. If. WIDE OPTION WHILE TRADING: A product for every need:  Nirmal Bang is the most comprehensive website.33% of the order value as margin. you have to place 33. Normally to buy shares. Margin Trading: You can also do an intra-settlement trading up to 3 to 4 times your available funds. where in you take long buy/short sell position in stocks with in the intention of squaring off the position within the same day settlement cycle. Cash trading:  This is a delivery based system. In margin trading. which is generally done with the information of taking delivery of shares or monies. he price moves in your favor (rises in case you have a buy position or falls in case you have a sell position). which allows you to invest in shares. margins are blocked only to safeguard any adverse price movement.

Margin PLUS Trading:  Through Margin PLUS you can do an intra-settlement trading up to 10 times your available funds. Trading in NSE/BSE: through Nirmal Bang you can trade on NSE and BSE. Margin PLUS will give a much higher leverage in your limits. BTST:  Buy today sell tomorrow (BTST) is a facility that allows you sell shares even on 1 st and 2nd day after the buying order date. on selling shares through ―cash on spot‖. without you having to Waite for the receipt of shares into your demat account. It would block he maximum loss which customer can suffer. Margin PLUS is an order placement feature where you can take a position at market price and also place a cover order for the position specifying the SLTP and the limit price.  Spot Trading:  This facility can be used only for selling you is demat stocks which already exist in you‘re demat account. This will minimize the loss cover at the time of taking the position itself. When you are looking at an immediate liquidity option. money is certified to your bank a/c the same evening & not on the exchange payout date. Call N Trade:   Call N Trade allow you call on a local number in your city & trade on the telephone through our customer services Executive. . where in you take long buy/sell position in stock with the intention of squaring off the position within the same day‘s settlement cycle. Nirmal Bang won‘t levy a normal margin ranging from 21% to 50%. ‗cash on spot‘ may work the best for you. There by it gives a clear view of maximum downside involved in a particular position at a particular price.

Online confirmation of Order and trade: You get online confirmation of orders and trades. . As soon as you place your order they are validated by the system and sent to the exchange for execution.the status of any order is updated on real-time basis in the Order Book. limit orders can be placed by you during holidays & non market hours too. The execution can happen at a price more favorable than the price. Therefore. change of its getting executed are better. Limit Order: Limit Order is an order to buy or sell securities in which you specify the maximum price per unit in case of a buy order and the minimum price per unit in case of sell order.e. which is defined by you.Market order:  This is an order to buy sell securities at the best price obtainable in the market at the time it is matched by the exchange. In case of market order for NSE.. all market order placed which are not executive fully. when the Exchanges is open for trading). Market Order in BSE: Explanation: Market order can be placed only during market hours (i. You could trade by placing market orders during market hours that allows you to trade at the best obtainable price in the market at the time of execution of the order. The entire process is fully automation and there are no manual interventions. it becomes a limit order for the balance quantity at the last traded price. The actual transaction can be at a price more favorable than the price specified. Allow you to place a buy/sell order at a price defined by you.

Once the last traded price of the stock reached or surpasses the SLTP. an order of 1000 with a disclosed quantity condition of 200 will mean that 200 is displaced to the market at a time. After this traded. the orders get converted into a limit sell order at RS. However. another 200 is automatically released soon till the full order is executed.GTC. Stop Loss by Order: ‗A‘ short sell reliance shares at Rs. falling which the order is cancelled from the system. . 305. The maximum number of days for which the GTC/GTD order can remain in the system is notified by the exchange from time to time after which the day/date on which the order is placed and inclusive of holidays. For example. the order quantity is disclosed in full to the market. the system cancels this order if it is not trade within a number of days parameterized by the Exchanges. The stop loss trigger prices price has to be between the limit prices an trade price at the time of placing the stop loss order. However. 305 and a limit price of Rs.e. not eligible for execution) till the condition is satisfied. in the event the price rises above his buy price ‗A‘ would like to limit sell order specifying a stock loss trigger price Rs. eligible for execution by being taken up in the matching process of the exchange) and then on behave like a normal limit order. A Good Till Days/Date (GTD) order allows the user to specify the number of days/date till which the order should stay in the system if not executed. Partial match is possible for the order and the unmatched portion of the order is cancelled immediately. 300. Disclose Quantity (DQ) Order: Normally. When a stop loss trigger price (SLTP) is specified in a limit order. 325 in experience that the price will fall. GTD and IOC Order: A Good Till cancelled (GTC) order remains in the system until the trading members cancels it. Once the last trade price touches or crosses Rs.e. An order with a disclosed quantity (DQ) condition/attribute allows the trading members to disclose only a part of the order quantity to the market. The order remains passive (i. DQ (Disclosed Quantity) should not be less that 10% of the order quantity and at the same time should not be greater than or equal to the order quantity. the order becomes activated (i. An immediate or cancel (IOC) order allows the user to buy or sell a security as soon as the order is released into the system. 300. It is used as a tool to limit the maximum loss on a position. Stop Loss Order: A stop loss order allows the client to place an order which gets activated only when the market price of the relevant securities reached or crosses a threshold price specified by the investors in the form of ‗stock loss trigger price‘. the order becomes one which is conditional on the market price of the stock crossing the specified SLTP.

With option trading. on a before a specific date. which gives buyer the right to buy or sell shares at a specific prices. Presently only selected stock. you make a perfect. have been enabled for future trading. To take the buy/sell position on index/stock option. There is now obligation on the buyer to complete the transaction if the price is not favorable to him. which is called premium. Buy paying lesser amount of premium. you can create position order option and take advantage of more trading opportunities. you take buy/sell position in index or stock (S) contract having a longer contract period of upto 3 month. The buyer of a put option as the right but not the obligation to sell the underlying asset at the specified strike price paying a premium whereas the seller of the put has the obligation of buying the underlying the asset at the specified price. the buyer has to pay to the seller some money. For this. you can leverage on your trading limit buy taken buy/sell position much more that what you could have taken in cash segment. during the course of the contract life. The buyer of a call option has the right but not the obligation to purchase the underlying asset at the specified strike price buy paying a premium whereas the seller of the call has the obligation of selling the underlying asset at the specified strike price. Calculate index and now your margin are tools to help you in calculating your margin requirement and also the index & stock price movement. Trading in FUTURE is simple if. the price moves in favor (i.2: Trade in derivatives: Future: Through Nirmal Bang you can now trade in index and stock futures on the NSE in future trading. . you have to place certain % of order value as margin.e. which meet the certain liquidity and volume. rises in case you have a by position or sell in case you have a sell position). Option: An option is a contract.

Systematic withdrawal plan: This allows you to withdraw or certain some money over up period of time periodically. Get –in-depth analysis for new IPO‘s issue (initial public offering) which are about to hit the market and analysis on these. the period of investment and the frequency of investing and submit. recent IPO listing. 3: IPOS and BONDS Online: You can also invest in initial public offers (IPO‘s) and bonds online without going through the hassles of filling any application form/paperwork. . prospectus/offer document. and IPO analysis are few of the features. Just fill in investment amount. which helps you keep. Systematic investment plans (SIP) SIP allows you to invest a certain some of money over a period of time periodically. keep on talk of the IPO markets. We will do the rest for you automatically investing periodically for you. You can switch your monies online form one schemes to another in the some fund family without any hassles. IPO calendar.Switch: To suit your changing needs you may wish to shift monies between different schemes. Transfer-in: we can convert to existing mutual funds into electronic more through a transfer-in request.

If you are in the business of buying and selling securities under the head ―profit or gains of business or profession‖. Capital Assets: Capital asset means property of any kind held by an assesses. do I have to play tax on these transactions? Yes. Gold deposit Bond under the gold deposit scheme.i. 1980. In case these securities are held as stock-in-trade i. 4: 7% Gold Bonds.Taxation of Indian Resident: The below mentioned FAQs are restricted to tax implication of the resident investors only. 5: National Defiance Gold Bonds 1999. 3: 61/2% Gold Bonds. furniture.e. Q: what is the nature of income under which transaction in securities will be taxed? Profit and loss from purchase and sales of securities will be taxed under the head of income from ―capital gains‖. 2: personal effect such as jewelers. but does not include 1:stock-in-trade. Capital gain/loss: Capital gain/loss means any profit or loss arising from transfer of a capital asset affected in the previous year.e. provided such securities are held as investment by you. whether or not connected with his business or profession. 6. In case these securities a new held as stock-in-trade. if you are in the business of buying and selling securities. indexation benefits. The profit and loss from purchase and sell of securities will be taxed under the head ―profit of gains of business or profession‖. Q: Buy and sell securities. is not available on debenture and bonds. You can also claim deduction for expenses incurred these securities along with cost of buying these securities. motor car held for personal use. your cost of acquisition can be increased by the indexations. Further if these securities are held or along term before selling them. which reduce your capital gains. . you are liable to play tax on his transaction: on the difference between the price at which you sell and the price at which you acquired it. 1999 notified by the central government.

is also treated as transfer. it shall be the portion of the cost which bears to the total cost the same proportion as the net-book value of the assets transferred in the demerged bears to the net worth of the demerged company immediately before demerged. the following specific transaction are not regarded as transfer e. amalgamation company in Indian company) (c) any transfer by way of conversion of bonds or debentures of a company into shares or debentures of that company in case of (a) and (b) above. The period of holding computed from the date acquisition to the date immediately preceding its sale.8. if the resulting owner sells the capital asst subsequently. Short term Asset: Capital is divided as long term and short term with reference to the period of holding of the asset by you.000/You were allotted 1000 shares as bonus on 11.Transfer of a capital asset: Transfer includes sale. unit of specified mutual fund u/s 10(23D) or any other listed security are held by you for more then 12 month then such share/units or listed security would be treated as long term asset. However. Example: You purchase 1000 shares of ACC on 10.8.2005 You sold these shares on 12. In case of demerger. (b) Issue of share by resulting of amalgamated company in lieu of shares held in the demerged or amalgamating company (providing in case of amalgamation. the asset is required to hold for 36 month so as to quality for long term capital gain. (a) any distribution of capital assets on total or partial partition of an HUF (a) any transfer of a capital under a gift or will or an irrevocable trust expect share. the cost of acquisition shall be deemed to be the cost at which the capital asset was acquire by the previous owner. 10. 30. unit os specific mutual fund u/s 10(23D) or any other listed securities are held by you for less than 12 months then such shares/ units or listed securities would be treated as short term assets. The cost of acquisition of the original shares would stand reduced correspondingly.2005 for Rs 1. exchanges or relinquishment of the asset of the extinguishment on any right there in or compulsory acquisition thereof under any low. In a case where as asset is converted by the owner or treated by him. In all other cases.6.000/- .2006 for Rs 1. If the shares. debenture or warrants allotted to employee under approved EFOP scheme.g. Long Term Asset: If the shares.

6.2000 110000*406/389 (indexation benefits) 1.807 Cost of one thousand bonus shares nil Long term capital 15.000 Cost of 1000 shares purchased on 10. 14. 193 .Calculation of long term capital gain would be as follows: Amount in Rs Sale consideration 1. 30.

Transfer of shares and settlements Transfer and settlements have never been easy as it under the depository system. If you are purchasing securities it has to be a receipt instruction slip or standing instruction for credit. Online execution of transactions at branches. dematerialized) holdings. Transaction update from back-office four times a day. Crash benefits like dividend and interest will. however be forward to you directly and not through the depository. Special rates for stock market intermediaries and sub brokers. physical security holding are converted into electronic (or in other words. If you are selling securities then it has to be a delivery instruction slip.DEMAT SERVICES Company offering Nirmal Bang is a registered member (Depository participant) of CDSL. Holding & Transaction Statements We provide statements of holding cum transaction every month at Zero cost. Portfolio valuation on the account statements. All you have to do is choose the right option in the share application from. Demat access through internet and phone. Why NIRAML BANG Demat Account?       Demat A/C free open. All that is required is an instruction slip from you. In this system. Receipt of Corporate Benefits Even securities establishment like bonus and right can be credit to your Demat account electronically. .

To do this would require to open an account with CDSL through us called ―Beneficiary Account‖ in the name and style in which the shares are held and lodge the share certificates with us accompanied by a dematerialized request from. Rematerialization You have the option to convert your electronic shares back to physical shares. This process is also much faster than in the case of physical shares. You are required to only make sure that CDSL has admitted that scrip for dematerialization. separate for each scrip.Dematerialization of shares At you request we arrange to convert your physical holding into electronic from. An upto date list will be provided to you which will be constantly updated. Pledge-Hypothecation You can also avail against your electronic shares. .


Khatau building. 2 floor. Mumbai. SMS ―BANG‘ TO 54646 .com Contact at: 022-30272323 www. Alkesh dinesh moby marg fort.nirmalbang.HEAD OFFICE:38-b/39.

PROOF OF ADDRESS (For individual / Karta / Sole proprietor / Authorized person (s) for Partnerships. Copy of current transaction statement / holding statement / certification by DP containing the name of DP and client 3. Current Electric Bill. II.MANADATORY DOCUMENT:- 1. . Voter ID Card. III. BANK AND DP PROOF: I. and Certificate Issued by employer registered under MAPIN. IV. 2. Driving license. Flat Maintenance Bill. Insurance Policy. Rent Agreement. I. FOR MINORS: In additional to the abovementioned documents. Birth certificate of Minor. Corporate and Trust) Photocopy of any one of the following: Passport. PROOF OF INCOME AND ASSETS: Copy of the salary of the constituent for the last month Income tax statement for the last 2 financial years Assets liability statement Copy of the values certificate in case of immovable property 4. Ration Card. I. corporate and Trust) Photocopy of PAN card 1. Copy of a pas book / bank statement containing name of the client III. the following documents would also be required for minors. Letter from client‘s banker certifying the account number and the period from which the accounts in operation as per prescribed format. II. PROOF FO IDENTITY (For individual /Karta / Sole proprietor / Authorized person (s) for Partnership. Current Telephone Bill. Bank Passbook.

resulting in notional or real losses. greater is the liquidity. . individual promoters holding 5% or more. II. Photographs of partners/whole time directors.1 Of higher volatility: Volatility refers to the dynamic changes in price that securities undergo when trading activity continues on the Stock Exchanges. 1. There may be normally greater volatility in thinly traded securities/contracts than in active securities/contracts. Net worth certified by Chartered accountant. Declaration on letterhead of firm as per prescribed format for sole proprietorship and partnership Firms. V. ADDITIONAL DOCUMENTS FOR NON-INDIVIUALS: Copy of the balance sheet for the last 2 financial years (copies of annual balance sheet to be submitted every years) Copy of latest share holding pattern including list of all those holding more than 5% in the share capital of the company. Generally. Or the price at which your order got executed may be substantially different from the last traded price or changes substantially thereafter. your order may only be partially executed or not executed at all. BASIC RISKS INVOLVED IN TRADING ON THE STOCK EXCHANGE (EQUITY AND OTHER INSTRUMENT) 1. 1. VI. III.2 Risk of lower liquidity: Liquidity refers to the ability of market participants to buy and or sell securities/ contracts expeditiously at a competitive price and with minimal price difference. IV. it is assumed that more the number or order available in a market. VII. duly certified by the company secretary/ whole time Director/MD. I. As a result Of volatility. (copy of updated shareholding patterns to be submitted every year) Copies of the memorandum and articles of association in case of a company / body corporate or partnership deed in case of a partnership firm Copy of the Resolution of Board of Directors‘ approving participation in equity / derivatives/ debts trading and naming authorized persons for dealing in securities. either directly or indirectly. greater is its price swings. in the shareholding of the company and of persons authorized to deal in securities. Generally.5. higher the volatility of a security/contract.

This is turn will hamper better price formation. stock may have to be sold/purchased at a low/high prices. and as a result.. 1. may also result into losses.4.Liquidity is important because with greater liquidity. There may be a risk of lower liquidity in some securities/contracts as compared to active securities/contracts. because in such a situation. and buy stop orders are entered ordinarily above the current price. However.. which satisfy the order quantity. A ―limit‖ order will be executed only at the time ―limit‖ price specified for the order or a better price. investors are more likely to pay or receive a competitive price for securities/contracts purchased or sold. while the customer may receive a prompt of a ―market‖ order. or may be executed with relatively greater price difference or may not be executed at all.2 Buying/Selling without intention of giving and or taking delivery of a securities.g.3 Risks of wider spreads: Spread refers to the difference in best buy prices and the best sell prices. It represents the differential between the prices of buying a securities and immediately selling it or vice versa. As a result.4. it is easier for investors to buy and/or sell securities/ contracts swiftly and with minimal price difference. so as not to have any obligation to delivery/receive a security.1 A ―market‖ order will be executed promptly. ―stop loss orders‖ etc‖. your order may only be partially executed. ―stop loss‖ limit orders) which are intended to limit losses to certain amount may not be effective many a time because rapid movement in market conditions may make it impossible to execute such orders. while the customer receives prices protection. on price time priority.3 . as part of a day trading strategy.4. 1. 1. It may be understood that these prices may be significantly different from the last traded prices or the best prices in that security. and such order gets activated if and when stock/contract reaches. or trades through. without regard to price and that. the stop price. subject to available of orders on opposite side. Sell stop order are entered ordinarily below the current price. The placing of such orders (e. there is a possibility that the order may not be executed at all. 1. Lower liquidity and higher volatility may result in wider than normal spreads for loss liquid or illiquid securities/contracts.4 Risk-reducing orders: Most exchanges have a facility for investors to place ―limit orders‖. A stop loss order is generally placed ―away‖ from the current price of a stock / contract. the execution may be at available prices of outstanding orders.2 1. compared to the executed price levels. When the stock reaches the pre-determined 1.

Such high volume may also occur at any point in the day.7 System Risk: High volume trading will frequently occur at the market opening and before market close. . the risk of such order not getting executed arises. there may be delays in order execution and its confirmation. or trades through such price.7. may suddenly cause an unexpected positive or negative movement in the price of the security/contracts. or if trading is halted in a security due to any action on account of unusual trading activity or stock hitting circuit or for any other reason. These announcements may occur during trading.price. a. it may be difficult or impossible to liquidate a position in the market at a reasonable price or at all.5 Risk of New Announcements: Issuers make news announcements that may impact the prices of the securities/contracts. just as with a regular limit order. There is no assurance therefore that the limit order will be executable since a stock/contract might penetrate the pre-determined price. the investors should be wary of and should desist from acting on rumors.7.6 Risk of Rumors: Rumors about companies at times float in the market through word of mouth.1 During periods of volatility. on account of market participants continuously modifying their order quantity or prices or placing fresh orders. websites or news agencies. newspapers. when there are no outstanding order either on the buy side or the sell side. 1. 1. These may cause delays in order execution or confirmation. and when combined with lower liquidity and higher volatility. a.2 Under certain market condition. etc. in which case. the stop loss order convert to a market/limit order and is executed at the limit order. 1.

the loss may exceed the original margin amount. If you fail to deposit the additional margin by the deadline or if an outstanding debt occurs in your account. provides the possibility of great profit or loss in comparison with the principal investment amount. This margin will have to be paid within a stipulated time frame. please note and get yourself acquainted with the following additional features:- a.8 system/network congestion: Trading on NSE/BSE is in electronic mode. Which may be beyond the control of and may result in delay in processing or not processing buy or sell orders either in part or in full? You are cautioned to note that although these problems may be temporary in nature. you may lose a part of our whole margin equivalent to the principal investment amount in a relatively short period of time. You should therefore completely understand the following segments before actually trading in derivatives trading and also trade with caution while taking into account one‘s circumstances. C. B. generally before commencement of trading next dat. financial resources. Thus. based on satellite/leased line based communication. there exist a possibility of communication failure or system problem or slow or delay response from system or trading halt. you will be required to deposit the amount of loss (national) resulting from such movement. But transactions in derivatives carry a high degree of risk. etc. In this case. you will be liable for any losses incurred due to such close-outs. As far as Future and option segment is concerned.9 Effect of “Leverage” or “Gearing” The amount of margin is small relative to the value of the derivatives contracts so the transactions are ‗leveraged‘ or ‗geared‘. . Derivatives trading.a. these represent a risk because of your obligations to settle all executed transactions. Future trading involves daily settlement of all positions. but when you have outstanding open position or unexecuted orders. Every day the open positions are marked to market based on closing level of the index has moved against you. which is conducted with a relatively small amount of margin. or nay such other problem/glitch whereby not being able to establish access to the trading system/network. Moreover. A. If the price moves against you. combination of technology and computer system to placed and route orders. the broker/member may liquidate a part of or the whole position or substitute securities.

You must ask your broker to provide the full details of the derivatives contracts you plan to trade i. F. you will be required to put up additional margins or reduce your options. the following steps may be adopted: changes in the margin rate increase in the cash margin rate or others.1 Risk of Option Writers: If the price movement of the underlying is not the anticipated direction. If the price of the underlying does not change in the anticipated direction before the option expires to an extent sufficient to cover the cost of the option. the investors may lose all or a significant part of his investment in the option. Under certain market condition. an investor may find it difficult or impossible to execute transactions.D. In order to maintain market stability. In such conditions. 2. the contracts specifications and the associated obligations. the option writers run the risks of losing substantial amount. Risk of Option Holders: 1.e. These new measures may also be applied to the existing open interests. 3.0. . 2. For example. this situation can occur due to factors such as illiquidity i. This risk reflects the nature of an option as a wasting asset which becomes worthless when it expires. when there are insufficient bids or offers or suspension of trading due to price limit or circuit breakers etc. E.e. An option holder who neither sells his option in the secondary market nor exercises it prior to its expiration will necessary lose his entire investment in the option. The exchange may impose exercise restrictions and have absolute authority to restrict the exercise of option at certain times in specified circumstances. An option holder run the risk of losing the entire amount paid for the option in a relatively short period of time. 2.

2. for both funds and securities settlement to each of its constituents. You should report errors. ensure that you lodge a complaint immediately with the investors‘ Grievance cell of NSE/BSE. 2.1. Payments should be made only by account payee cheque in favors of the firm/company of the trading members and a receipt or acknowledgement towards what such payment is made be obtained from the member.3 Every member is required to send a complete ‗statement of Accounts‘. ensure that you refer such matter to the investors Grievance cell of NSE/BSE. to the members. .4 In case of a complaint against a members/registered sub-broker. do not tally with the detail mentioned in the contract note.INVESTOR’S RIGHTS AND OBLIGATIONS: From the trade date upto five trading days. 2. Delivery of securities is made to the pool account of the members rather than to the beneficiary account of the members. 2. In case the error is not rectified or there is a dispute. if any. immediately get in touch with the investors grievances cell of NSE/BSE. without delaying.1.1 Ensure that payment/delivery of securities against is given to the concerned members within one working day prior to the date of pay-in-announced by NSE/BSE or it‘s clearing corporation/clearing House.2 In case pay-out of money and /or securities is not received on the next working day after date pay-out announced by NSE/BSE or its clearing corporation/clearing House. Please follow-up with the concerned members for its release. at such periodicity as may be prescribed by time to time. you should address the complaint to the office as may be specified by NSE/BSE from time to time. Where trade on the websites. in the statement immediately. but not later than 30 calendar days of receipt thereof.1.1. In case pay-put is not released as above from the members within five working days.

These charges will affect your net profit (if any) or increase your loss. if any. In case of claim. 2. ensure that you lodge a claim with NSE/BSE within the stipulated period and with the supporting documents. from investors. NSE/BSE gives a public notice inviting claims. GENERAL: 3. 3. relating to ―transaction executed on the trading system‖ of NSE/BSE. if any from investors.2 Deposited Cash and Property You should familiarize yourself with the protections accorded to the money or other property you deposit particularly in the event of a firm insolvency or bankruptcy. ensure that you lodge a claim with NSE/BSE/NSCCL clearing House within the stipulated people and with the supporting documents. relating to ―transaction executed on the trading system‖ of NSE/BSE. The balance amount of claims. NSE/BSE gives a public notice inviting claim. 3.1. you should obtain a clear explanation of all commission. per defaulter/expelled members may be payable subject to such claims being found payable under the scheme of the IPF.10 lakh per investors claim. . fees and other charges for which you will be liable.1 Commission and Other Charges Before you begin to trade. 2.1. In case of a claim. In some jurisdiction. property which has been specifically identifiable as your as your own will be pro-rated in the same manner as cash for purpose of distribution in the event of a shortfall.6 In case where a member is expelled from trading membership or declared a defaulter. to a maximum amount of Rs. The extent to which you may recover your money or property may be governed by specific legislation or local rules.5 In case where a member surrenders his membership.1.2. if any. on pro-rata basis if the amount is inadequate.7 Claims against a defaulter/expelled member found to be valid as prescribed in the relevant Rules/Bye-laws and the scheme under the Investors‘ Protection Fund (IPF) may be payable first out of the amount vested in committee for settlement of claims against Defaulters.

Capital Market Segment: 1. However SISBL shall not be liable for failure of the system or for any loss. (SISBL) may be subject to manual review and clearances which may cause delay in processing the order or rejection of the order. Damage or other costs arising in way out of: . It is understood by the client that with respect to market order. liable for any losses incurred by them. including a market order does not guarantee execution of the order.5 The terms ‗members‘ shall mean and include a trading members. 3. the same shall be subject to arbitration as per the byelaws/regulation of the exchange. Order Entry & Execution: The order placed by the clients over the phone or orally from the office would be entered into the trading system and after due surveillance would be transmitted to concerned Exchange instantaneously within a few seconds. a broken or a stock broker. The client agrees that placing an order. The order placed by the clients would be their own investment decisions and the clients will not hold SISBL or any of its employees or associates.3 3. who deals with a members for the purpose of acquiring and/or selling of securities through the mechanism provided by NSE/BSE. This extends to any decisions made by the client on the basis of any information that may be made available on the website of SISBL. the order will be executed at a price which may be different from the price at which the securities is traded when their order was entered into system. The client are required to take confirmation of their order immediately or at least once a day either in person or over telephone which would be deemed to have the same effect as given in person. who has been admitted as such by NSE/BSE and who holds a registration certificates as a stock broker from SEBI. please refer to Annexure-1 enclosed with this document. a customer or an investor. But some orders at the discretion of Shriram Insight Share Brokers Ltd. 3. The terms ‗constituent‘ shall mean and include a client.4 For right and obligation of the clients.In case of nay dispute with the member.

SISBL may require the client to immediately deposit funds or collateral into their account prior to any applicable settlement date in order to assure due performance of their open contractual commitments. any order not executed at the end of the day shall stand cancelled. The margin would vary from 0% to 100% of the open position of the client. If the clients does not provide the additional collateral. However. Sufficient Margin Maintenance for Placing Orders: The clients have to maintain sufficient margin before placing the order. This information would be communicated to the client orally or over the phone or in writing and decision of SISBL would be final in his regard. the client would be responsible for all of their orders including any order which exceeds the limit available based on their available margin. flood. rules framed by the concerned Exchanges or SEBI. The client should on a regular basis enquire about the margin requirement to ensure smooth transaction. and assessment of the client by SISBL. fir.a) Telecom network or system failures including failure of ancillary or associated system which forms or does not form or does not form part of trading workstation installation. . Open position would mean all pending orders and transaction. The requirement of margin will be intimated by SISBL from time to time depending on the market condition. 2. special or consequential damages including without limitation of loss or profit. or any other similar occurrence: or b) c) Any incidental. act of violence. of the client which are either unpaid or undelivered. or fluctuation of power. 1A. or other environmental conditions: or Act of god. respectively. Cancellation of orders is possible only if the original remains pending at the exchanges. Cancellation or Modification of Orders: The execution or order cancellation or modification is not guaranteed. both purchase and sale. war. the client hereby understands and knowledge that SISBL has the right to sell any or all the securities and other properties available with it and can cancel any or all open orders and/or closes any or all outstanding to raise the required margin. Unless otherwise specified by SISBL.

The client shall not make any payments of SISBL through any third party account or an account of any other client SISBL. . Clients have to pay margin for the open position they may have at any point of time in the following manners: a. Margin in the form of money deposit (Cash Margin) b. Margin in the form of specified securities to be calculated at a specified percentage of value of the securities depending on the scrip as specified by SISBL from time to time. the clients are required to give the cheque sufficiently in advance so that the amount is credited in SISBL account before the due date.The client will be liable to bear any loss arising out of the same. SISBL would present the cheques in normal clearing and would not be responsible for any delay due to clearing in the banking system. Otherwise SISBL shall have the power to pledge the shares with scheduled Banks and/or non banking finance companies to realize the money and meet the Pay-in obligations to the concerned exchanges. Payment from client against purchase of securities: Payment for purchase of securities has to be made by account payee cheque only from the declared bank a/c of the client only favoring ‗Shriram Insight Share Brokers Ltd‘ By T+ 1st day but not later than the due date for playing of funds to the concerned exchanges and not to nay employee or purported representatives of SISBL. Therefore. It is understood by the client that date on which clear funds are available in the bank account of SISBL would be treated as the date of having received the payment although a receipt may be issued at an earlier date for the cheque given by the client. All deliveries against margin are to be made by transferring the share from the declared DP account of the client to the designated beneficiary account of SISBL: For NSE cash segment-1203840000009946 For NSE F&O segment-1203840000132265 c. The client further undertakes that in case he fails to make payment of consideration to SISBL in respect of any one or more securities purchased by him before the pay in date notified by the exchange from time to time. Margin in the form of FD (as specified by SISB) 3. SISBL can sell the securities at any time on the exchanges not later than the fifth trading day reckoned from the date of pay-in.

Dematerialized shares: The client should instruct his depository participants. All third parties against pay-in obligations have to be honored by transferring the shares from the declared DP account of the client to pool account of SISBL.e. nonpayment for dues date may result in sale of such purchased securities at the cost and penalty of the client. sufficiently in advance. prevalent at the time. due to nonpayment of dues from the client then the delivery will be made within seven days of payment of the dues. In case the securities are unpaid on the pay-out date. on any account. i. But. Delivery to client of securities Purchased By Them: Securities purchased by the client will be delivered to the DP account of the client (as specified in the registration from the by the client) by SISBL only if all the money. Any error in giving the details regarding default DP account will be clients‘ responsibility and he will not hold SISBL responsible for any loss due to transfer of shares into the account as mentioned above. to transfer shares into the pool account of SISBL preferably on the same day. trading day itself or latest before 9 am. Delivery from Clients of securities Sold By Them: A. The instruction for delivery to client account will be issued within time schedule specified by the concerned Exchanges. same will be taken/transferred into the designated beneficiary account of SISBL to avoid SEBI pool penalty charges. due from the client till date of delivery is realized in full.4. Part delivery of securities based on part payment will not be allowed. 5. If the delivery could not be made on the due date. For NSE cash segment-for NSE pay in NSDL POOL-CMBP-IN 563399 (28836274/IN 301250) CDSL A/C -1203840000000067 For BSE cash segment principal A/C-1203840000000033 . On the respective settlement day as specified by the exchange and shall not cause delivery of shares of SISBL through any third party account or an account of any client of SISBL.

Consequently client will be responsible for any resulting losses and all associated costs including penalty as specified in point 10 a. the receipt of the same may be used to meet pay-in obligation for current settlement. Redelivery from purchase of earlier settlement: If a client has purchased some securities in an settlement and has not taken delivery of the same/the securities have remained undelivered to him/her and if he/she sells the same in the current settlement then the shares purchased in earlier settlements. In all such cases clients are required to take a clear confirmation from SISBL about the delivery status of earlier purchases before proceeding with the sale of securities. wherever is applicable. . The clients are cautioned that execution of a purchase order does not guarantee delivery of share which may fail in case of short delivery from the concerned Exchanges or the selling party. C. SISBL will not be responsible for any losses if a short delivery takes places due to such short receipt in the earlier settlement. Auction of securities: If the client fails to make delivery of deliverable shares as per the pay-in schedule of Exchanges then the securities will be auctioned as per the rules of the concerned exchanges or as per Inter Auction rules mentioned in point 8.B.

c) In case WAP is not available. . where both the purchase and sale position for any scrip are limited between two or more of our i. SISBL‗s clients only. 8.00% delivery brokerage. in any settlement. then auction day high prices and trading day high prices are compared with the highest purchaser price as mentioned in (b) above. Client agrees that although the auto square off trigger point is predefined subsequent to which SISBL could exercise its discretion to carry out the square off within a reasonable period of time and the client agrees to bear the loss based on actual executed prices.TERMS AND CONDITIONS: VOLUNTARY DOCUMENTS NO. In all other cases where the margin or securities placed by the client fails sort of the requirement or where the limit given to the client has been breached or the client has defaulted on his existing obligation. taken from the concerned Exchange Download. paid for by the purchaser(s) who have not been delivered the shares due to corresponding short delivery for that scrip in that particular settlement. the highest of the following prices will be considered. b) Highest purchase price plus 1. in this situation. For determining the auction price. Inter client auction: In case. In such a situation if there is any short delivery then the resultant auction position will be inter client since both the legs i.e. the guiding principal being ―purchaser should not loose‖ a) The concerned Exchanges Weighted Average price (WAP) for that particular scrip in that particular auction settlement. and the highest is taken as auction price. b) In case the marks to market loss on the open position has reached the stipulated percentage of the margin or reduce the Mark to Market loss. 1 a) In case the open position is either squared neither off nor converted to delivery by client within the stipulated time. such that the net position to the concerned Exchanges in that settlement and for that scrip is ―NIL‖.e. the party delivery short and the corresponding purchaser are both SISBL‘s clients.

service tax and the other taxes and transaction expenses as they exist from time to time and as they apply to the Client‘s Account and transactions and to the services that the Members renders to the client. and the client agrees to keep himself updated in respect thereof. Auction contracts notes will not be issued for inter-client auction trades because they are not trades in true sense of the term. As started above. FAILURE TO FIVE DELIVERIES OF SECURITIES: A delayed delivery charge will be levied on the valued of securities delivered short.00. fees and commissions. The client also agrees that he member may deduct and appropriate any of the aforesaid amounts from any amount payable by the members to the client. inter-client auction trades envisage debiting the client delivering short with the auction amount and crediting the corresponding purchaser with the equal amount. . 10. COMMISSION AND FEES: i) The client agrees to pay the member brokerage. b. Square Off Open Position: The client agrees that SISBL would have the discretion to square off the position of the client in the following circumstances: 10. a penalty @ 1. The charge will be @ 1. 9.99% will be levied in pursuance to clause 10(a) of the terms and conditions. fees. ii) A schedule of the current brokerage. 10. but merely involves debiting and crediting the respective client accounts. a.It may be noted to the above auction price. commission.00% on the auctioned value subject to minimum of Rs. applicable services and other taxes and other transaction expenses shall be provided by the Member on the Member‘s Web site. Charges: 10. BROKERAGE. Hence debit/credit notes are issued for inter-client auction trades. no brokerage being charged for a auction trades.

such invalidity. On reaching the aggregate ceiling limit as fixed by RBI from time to time.1% per day on the amount defaulted from the date when the payment is due till the day. 11. The client thus authorizes SISBL to adjust/withhold his funds and/or securities payout from the concerned Exchanges with future funds and/or securities pay-in obligation that the client may have towards SISBL before transferring the funds and /or securities to his account. When the payment is received either by squaring off the position or by the selling of securities lying with SISBL or when the funds are actually paid the client. 12. non-enforceability or illegality shall . Reserve Bank of India Guidelines (RBI) The client is aware that as per the RBI guidelines Non Resident Indians (NRIs) and persons of Indian Origin (PIOs) are allowed to invest in the secondary capital markets in India through the portfolio investment scheme (PIS). FAILURE TO PAY FUNDS: A penalty will be levied at a certain percentage at the discretion of SISBL with maximum rate of @ . For the purpose of ascertaining amount defaulted. the RBI advices all designated bank branches to stop purchases on behalf of their NRIs/PIOs clients. c. any credit in cash margin a/c (only) will also be considered. Authorization for On-Going Account: The client agrees that he is desirous or regular trading transaction through SISBL on an ongoing basis. 13. The clients hereby agrees to keep abreast of the ceiling limits on investments as published by RBI and authorizes SISBL to reserve the transaction immediately on his behalf if such transaction breaches the ceiling limit. It is understood that no interest will be payable to the client on the amount or securities so retained by SISBL. unenforceable or illegal for any reason.10. These investments are governed and monitored on daily basis by the Reserve Bank of India. Severability: In the event of nay provisions of this agreement being held to be or becoming invalid.

This precautionary measure is taken by SISBL to avoid inconvenience sometimes caused due to short delivery of shares. It is agreed by the client that he/she is aware of the different pay out dates of different types of settlement cycles followed by the concerned Exchanges time scheduled. b. The client understands and agrees that SISBL may suspend or discontinue its services in part or in its entirety and change the terms of services (including the terms on SISBL‘s Web Site) or this agreement at any time and from time to time. 14. and the same shall bind the client. may suspend or terminated the services without prior notice to the client if the client has breached any terms or conditions. The client agrees and authorized SISBL to act at its discretion of merging balances kept under various account of different segments such as margin and settlement account of one exchange/segment to nullify the debit in any other account of the client of another exchange/segment held with SISBL without taking any further instruction from the client. disability. if any. statements.attach only to such provision or condition and his agreement shall remain otherwise in full apart from the said provision. Which will be deemed deleted? The validity of the remaining provisions and conditions shall not be affected thereby and this agreement shall be carried out as if any such invalid or unenforceable provision or condition was not contained herein.. . notices and other communications: the client are required to collect the contract note within 24 hours from the office of SISBL and if it is not collected within 24 hours then it will be deemed as received and confirmed by the client. without prior notice. 6. payout of funds) proceeds of the sale cannot be paid to client until securities have been delivered to the concerned Exchanges Clearing House and payout of fund is received from the concerned Exchanges. or where in the perception of SISBL. the continuation of the services could increase the risk of SISBL. Without prejudice to the generality of the aforesaid. 7.C.P/ courier/any other means of post and the resultant postal charges will be debited to the client‘s settlement account. debit standing in his account under another exchanges.e. Amendment & suspension: a. Confirmations. prevalent at the time. Or if SISBL learns of the death. Payment to client against sale of securities: (i. Further SISBL reserves the right to send the uncollected contracts notes to the client‘s declared address through U. bankruptcy or lack of legal capacity of the client. SISBL shall only make payment to client after adjusting the credit standing in his account in one stock exchange with.

nseindia. Issue of Digital Signed Contract Notes in Electronic Mode: The client understand that contract note will be deemed to have been delivered and acknowledged by the client when it is sent to e-mail id as specified by the client in the contract details window of the KYC. 7B. In this The client understands that all information contained therein shall be binding upon the client. For this purpose record available in the electronic mode in back up of the approved software of the trading members will be deemed to be conclusive evidence of the dispatch and confirmation and no further proof will be required.The client understand that it is their responsibility to review upon first receipt all confirmation. wherever the ECNS have not been delivered to client or has been rejected (bouncing of mails) by the e-mail ID if the client. . Derivatives Segment: 15. ii. Additional Terms & Conditions Governing Derivatives Segment i.sebi. 7A. SISBL shall send a physical contract note to the client within the stipulated time under the extant regulations of SEBI/stock Exchanges and maintain the proof of delivery of such physical contract note at the cost client. notices and other communication contained therein and shall be binding upon the client unless client do not object in writing within 24 hours of receiving such document(s). Further. the contract notes in electronic mode would be made available in the member‘s website in a secured way. margin computations is done by the Exchanges through an online position monitoring and margining system called SPAN (Standard Portfolio Analysis Risk) Margin percentage may differ from stock to stock depending on the risk involved in the stock which depends upon liquidity and volatility of the respective stock besides the general market conditions.bseindia. (iii) www. which can be viewed by client by entering their respective password. Further. the client understands that such contracts being sent electronically will have ―Digital Signature‖ the term having the meaning as given in (i) Margin percentage can be changed during the life of the contract depending on the volatility in the market. (ii) if the client does not objects in writing within 24 hours of the sending of the contract note in the electronic mode by the broker.

SISBL is authorized to retain with them the MTM profit.00a. Any or all such incidental expenses incurred by SISBL in this regards will be reimbursed by the client. iv. interim exercise settlement value receivable on futures and options contracts and settle the same on monthly basis or on demand by the client after deducting dues. satisfy. then SISBL may at any time thereafter and without giving any notice to the client can buy. Market wise position limit violation) and a s a result of which any penalty is imposed on SISBL by the concerned exchange. If the client have been are may become unable to meet. ix.m. If the client takes position in any securities that has entered the prohibited range (for MWPL violation i.e. then the same will be liable to be recovered from the client. if any. The client shall pay the daily mark to market loss for all my/our position in index and individual stock future contracts and pay the final settlement loss on expiry of the index and individual stock futures contracts/index contracts as the case may be as charged by NSCCL to SISBL by 9. vii.iii. Next day. If the clients after fulfilling his margin requirement fails to meet his/her uncrystallised M2M loss either in part if full then the company will charge penalty at appropriate rate for meeting the uncrystallised M2M pay-in on behalf of the client to the exchange. v. The client shall pay the interim as well as final exercise settlement value for all my/our short position on individual stock options contract which has been assigned against him. daily premium receivable. viii. discharge or fulfill any obligation or liability or commitment or nay part thereof. vi. as charged by NSCCL o SISBL by end of next day. The client shall pay the daily premium payable for all my/our open positions in index and individual stock options contracts as charged by NSCCL to SISBL before execution of the contracts. . sell or close out any part or all of the future and option contracts held in his account with SISBL. The client shall be required to pay an initial margin upfront on or before creating a position in any derivatives contract and further the client should provide additional margin money when called upon to do so as required in respect of position taken by him in this segment SISBL has the right to reject orders if the required margin has not been deposited.

In the futures Market following settlement obligation are to be full filled. ii. If the index or the individual stock prices have moved against the client. turn over tax and securities Transaction Tax.  Premium payable  Or receivable  Profit on exercise  Loss on assignment  Service tax on Brokerage. . the client would have to pay or receive the money. Options: i. turnover Tax and securities Transaction Tax.) The following settlement obligations are to be full filled in the options segment Brokerage – Any transaction entered into will attract brokerage which will be debited from the clients account at the end of the day. Profit & loss on squared off position. ii. Brokerage. However since options are currently cash settled. the underlying will have to be bought in case of PUT and sold in case of call. he will be required to deposit the amount of loss (national) resulting from such movements within the stipulated time periods. Futures i.15a.Any transaction entered into will attract brokerage which will be debited from the clients account at the end of the day.) iii.e. Every day the open positions are marked to market based on the closing level of the index and the individual stock price. For options contracts in case a client has a sell position.) The assignment process in initiated and completely decided by the exchanges on a random basis. the contract may be assigned to him i. Profit & loss on end of day (EOD) MTM on open position Service tax on Brokerage.) All future obligations are settled by the exchange on T+1 basis 15B. Hence it is not necessary that the assignment will take place even if the position is inthe money.) Futures‘ trading involves settlement of all positions.)     iii.

i) SISBL shall not be deemed to have received an order unless and until it has actually received the order in the order-receiving module of SISBL‘s system. and passwords whether or not such persons was authorized to do so. and that SISBL is not aware of the same. SISBL‘s system shall generate a new password for the client which shall be communicated to the client. e) f) The client shall be responsible for keeping the username and password confidential and secure and shall be solely responsible for all orders entered and transactions done by any person whosoever through SISBL‘s system using the client‘s username. The client shall not be entitled to presume that any order transmitted by the client has been received by SISBL until . The clients agree and understand to immediately change his initial password upon receipt thereof.16. that may be suffered by the client on account of the misuse of the password and the client shall be liable and responsible for the same. g) If the client is unable to change his password by reasons of his having forgotten his passwords or his password or his password having been un authorized changed by some other persons or for any other reasons then the client shall immediately request SISBL in writing to discontinue his old password. d) The client shall lo off from the Nirmal Bang. Additional Conditions In Relation To Electronic Orders a) The client confirms that from time to time he would continue to read and understand the exchange provisions and the terms and conditions in relation to electronic orders to be placed through SSBL‘s Web services and any liability incurred to the client as a consequence to the client not logging off the services shall be borne solely by the client. password or other identification or security code (by whatever name called) which will enable him to enable him to access SISBL‘s system or services through SISBL‘s web site for availing of the services. The client is aware that subsequent passwords also are not know or available to SISBL. encrypts and passes on the password to the services at any time the client is not accessing or using the Nirmal bang. c) The clients is aware that SISBL‘s system itself randomly generates the Initial password. whether national or actual. b) The client will be entitled to a User Name. h) At no point in time shall SISBL be liable for any loss.

bank account details. an order which has been received by SISBL may not be immediately confirmed to the client. the client shall not be entitled to terminate this agreement so long as any amount is payable or securities are delivery by the client to SISBL and it may not be possible for SISBL to give advance notice of such termination or suspension to the client. 17. Any subsequently change in the information provided by the client should be intimated to SISBL by the client through written submission only. e-mail address etc. SISBL does not operate through any sub broker or authorized person or franchise anywhere in India. Client‘s signature: . 18. However.SISBL ha confirmed receipt of such order. Prohibitory Clause: SISBL should not be held responsible for any incorrect information supplied by the client during the time of registration. Termination of Agreement: In addition to the termination clauses in stock Broker-client Agreement. The client is thus requested to take adequate care in providing correct details under all heads viz. due to technical or other factors. In the registration form.

AGREEMENT TO PROVIDE AND AVAIL OF THE MEMBER’S SERVICES: 2. This agreement shall become effective only upon the members opening such client Account.INTERNET TRADING AGREEMENT IN ADDITION TO THE STOCK BROKER AND CLIENT AGREEMENT.1. DEFINATION & INTERPRETATION: In this agreement. on and subject to the terms and conditions of this Agreement. (1) Words and expressions defined in Basic’s in our websites nirmal bang. The client is aware and agrees that the mere execution and/or acceptance of his Agreement by the Members opening such client account. . unless repugnant to the context or meaning thereof. (i) (ii) shall have the meaning assigned thereto in Basis’s and (2) The principal of interpretation set out in Basic’s shall apply to his agreement.3 The client is aware of and agrees that in the course of transaction on the Exchanges the Member will be acting as an agent of the client. the members may open a client account in the name of the client. 2. 2.2 Based on the Account Application submitted by the client. the terms of the Member‘s Web Sites and the terms of the contract/contract note to be issued by the Member‘s to the client: The members agrees to provide the Member‘s Services to the Client. unless otherwise disclosed by the members to the client. the exchange provision. RISK DISCLOSUE DOCUMENT & TERMS AND CONDITIONS THE FURTHER CLAUSES FOR INERNET TRADING ARE AS FOLLOWS :- THE PARTIES HERE TO AGREE AS UNDER: 1. and The client agrees to avail of the Member‘s Services.

However. However. and will pay or reimburse to the members as a consequences of access and /or use of the expenses incurred by the member‘s . The member shall be entitled to presume that any order or instructions entered or communicated using the client‘s username. and also for any and all acts done by any person through the member‘s system on the client‘s username in any manner whatsoever. 3. 3. password. 3.1 The client acknowledge that he is fully aware of and understands the risks associated with availing of a services for routing over the internet or the telephone including the risk of misuse and unauthorized use of his username. username. nothing herein shall oblige the members to take such steps.5 Now with standing anything stated elsewhere in this agreement. USER NAME AND PASSWORD 3.4 The client shall ensure that he is the only authorize user of the username. Password is the client‘s own order or instruction that of the client‘s duly authorized representative.4 The client hereby authorized the members to take all such steps on the client‘s behalf as may be required or advisable in the member‘s opinion for compliance with the exchanges provision or any other law or provisions. the client desires the convenience of such facility of transmitting orders and instructions over the internet and telephone and has therefore opted for such facility of his own free choice and is willing and agreeable to bear all associated risks. Or to complete or settle any transaction entered into through or with the members or executed by the members on behalf of the client.2 The client accepts full responsibility for the monitoring and safeguarding of the client‘s account and agrees that he shall be fully liable and responsible for any and all un authorized use and misuse of his password. the members may at any time in its sole discretion.3 The client is also aware that he has the option of not availing such facility/services. 2. responsible and liability. without any prior notice and without assigning any reasons what‘s ever. 2. The client will be fully responsible and liable for. being fully aware of all risks.6 The members and the client shall be bounded by the provision of the exchange on which the concerned transaction is affected.2. 3. prohibit or restrict the client‘s access to the use of the member‘s Web Site or Services and the client‘s ability to trade. password by a third party and the risk of a person hacking into the client‘s account on the Member‘s system and unauthorized routing orders on behalf of the client through the system.

or e) He does not. if the client is unable to change his password by person of his having forgotten his password or his password having been unauthorized changed by some other person. c) He forgets his password.8 The client agrees that orders. 3. executed. Or for any other reason than the client shall immediately request the members in writing to discontinue his old password.7 In any of the above events specified in clause. password. the client shall immediately notify the member in writing with full details if: a) He discovered or suspects unauthorized access through his username. securities positions or transaction history. or receives inaccurate information in client‘s account balances. The client also agrees that such recording and the member‘s recorders of any orders. 3. or receives confirmation of an order and /or execution which he did not place. At no profit in time shall the members be liable for any loss.5 Without prejudice to the provisions of the aforesaid clause. However. instruction and communications given or made by . The client shall immediately change his password. that may be suffered by the client on account of the misuse of the password and the client shall be liable and responsible for the same. instruction and other communication given or made over the telephone may be recorded by the member. receive a message from the members indicating that the order has been received or. 3. member‘s system or services by any third party using the client‘s username. on the same day as the receipt or execution of an order by the member.6 3. whether notional or actual. b) He notices discrepancies that might be attributable to unauthorized access. password. and thereupon the members shall cause the member‘s system to discontinue the use of the client‘s old password and the member‘s system shall generate a new password for the client which shall be communicated to the client.system or services by any third party using the client‘s account. f) He does not receive a confirmation of an execution. d) He discovers a security flaw in the member‘s system.

9 The client agrees to provide information relating to customers relating to customer user identification and such other information as may be required while placing orders on the telephone to determine the identity of the client.2 As a prediction for execution of a purchase order. VOLUNATRY DOCUMENTS NO. fax or other electronic means shall be admissible as evidence and shall be final and binding evidence of the same. at the time of order placement by the client. transaction charges. associated costs and such mark-up as the members any determine: and/or Require the amount of margin prescribed by the members to be available in the client‘s margin account if nay. determined by the members in the client‘s account with the members. if any. Require the client. 2 4 ORDERS ROUTING AN EXECUTION: 4. manner: The manner (if any) as the members may permit (including through branches that the members may specify for this purpose) Through the internet over the member‘s website: II. an available funds balance in the client‘s account with the member for the full value of the order plus any Brokerage. service tax.the client or the member by electronic mail.3 As a prediction for execution of a sale order. and also maintain funds required for margin.1 The client shall transmit his order to the members only in the following I. 4. 3. Required the client. with the members. III. Over telephone 4. ii. at the time of order placement by the client to maintain an available stock balance in the member‘s own depository account. the members may in its sole discretion: i. the members may in its sole discretion: i. and/or .

etc. The client shall not be entitled to presume that any order transmitted by the client has been received by the member until the member has confirmed receipt of such order. sale or other dealings in securities and other instruction routed through the member‘s system via client‘s username shall be deemed to have been given by the client. 4.8 All order received by the member through the system may be executed in good faith and shall be valid until separately cancelled in accordance with the provisions of this agreement. and the client agrees that if any instruction or orders or any details therefore are not absolutely clear and unambiguous.6 The member shall not be deemed to have received an order unless and until it has actually received the order in the order receiving module of the member‘s system. 4. all orders for purchase. due to technical or other factors. 4.4 The members shall be entitled to offset the purchase price of a purchase order/transaction against the proceeds of a sale transaction executed by the client through the member. an order which has been received by the members may not be immediately confirmed to the client. 4. Require the amount of cash margin prescribed by the members to be available in the client‘s margin account.7 The client shall be allowed to trade only during Trading hours.5 Unless the members otherwise determines. value and/or kind of securities in respect of which orders can be placed. limits as to the number. if.9 The client agrees to ensure that all orders and instructions which the member receives from the client are absolutely clear and unambiguous. with the members. any. 4. turnover limits. The members may from time to time in its discretion impose and vary limits on the order and trades which the client can be place and enter into through the member‘s system (including exposure limits. and vice versa. the member.ii.10 . However. 4. its employee or authorized representative shall be entitled to interpret the same as per its/his understanding and such understanding and interpretation shall be treated as final. Such client in confirmation shall not entitle the client to presume that eh order has not been received by the members and the principle mentioned in the first sentence of this clause shall apply.). the companies in respect of whose securities orders can be placed. 4.

The members may in its discretion at any time allow or disallow margin trading by the client. The client agrees that the members shall not be responsible of liable for the client‘s inability to place any order or enter into any transaction on account of nay such variation. and the members may not inform the client of the same. 4. the members shall have the right to accept or reject the client‘s objection. 4. Within 24 hours from the time of receipt of the first notice. In particular. the members may forward to the client late reports in respect of such transaction that were previously unreported to him.13 5. confirmation or contracts note of executed trades (including execution prices. instructions and transactions at the default in research thereof. Based on the member‘s risk perception: or In respect of which the client requires regulatory approval. 5. II. 4.The members may choose not to intimate the client of the limits and any variation thereof. . the members may refuse to accept or execute the whole or a part of any order or instruction:I. via electronic mail or fax. account.1 The client shall bring any errors or other discrepancy in any report. even if the Client has sought and obtained the required regulation approvals. CONFIRMATIONS: 5. imposition.12 The clients shall be responsible for obtained and complying with all applicable legal and regulation approval in respects of the client‘s order‘s. restriction or prohibition. scrip‘s or quantities) to the member‘s notice in writing. In all causes. Accordingly.11 The members shall have the right to refuse to accept the whole or a part of any orders or instruction from the client and/or refuse to execute the whole or a part of any accepted orders or instruction without providing any reasons therefore. The client is aware and agrees that he members may need to urgently vary the limit or impose new limits or prohibit or restricts the client‘s ability to place orders or trade in securities through the members on the basis of the member‘s risk perception and other factors considered relevant by the members.2 There may be a delay in the members receiving the reports of transaction status from the Exchanges.

such suppliers and the members do not guarantee the timeliness. misleading. 7. he shall do so at his own risk and cost. 6.1 All actions required to be taken to ensure compliance of all the transactions which the client may enter into pursuant to his agreement with all applicable laws shall be completed by the client prior to such transaction being entered into. . directly. 6. REPRESENTED AND WARRANTIES OF THE CLIENT: 6. 6. The client shall not hold the members responsible for nay losses suffered by the clients on account of nay late reports/statements or nay errors in reports/statements computed by or received from the exchanges. whatever such approval is required.1 The client understand that the exchanges and any other suppliers of data asserts a proprietary interest in all of the market and other data it furnishes. through the members or otherwise. the member‘s system has been approved by the Exchanges.Or were incorrectly reported to him as being expired. or executed. 8.2 The client shall abide by the exchange provisions and the terms of the member‘s Website in force from time to time.3 Any instruction given by an authorized representative of the client to the members (or to the member‘s representative) shall be binding on the client. accuracy or completeness of the data or nay other information. Neither the members nor the Exchanges nor such suppliers shall be liable in any way for incorrect. REPRESENTATIVE AND WARRANTIES OF THE MEMBERS: The member represents and warrants to the client that. OTHER DATA: 8. cancelled. if the client acts on the same. or any messages disseminated by it. The client understands that the Exchanges. sequence. incomplete or out-dated data ro information and.

indirect. The member‘s service is provided without warranties of any kind. The client shall be responsible for knowing the rights and terms of all securities in his accounts and the members shall not be obligations to notify the client of nay upcoming expirations or redemption dates. including negligence. The client is authorized to use. merchantability or fitness for a particular purpose. liability. The client will not delete copyright or other intellectual property rights notices from any such materials.3 9. but not limited to. incidental. trading losses. those of uninterrupted availability. . either express or implied. 9. shall the member‘s services or system be liable for any direct.2 The client agrees that under no circumstances.1 The members does not warrant that the service will be uninterrupted or error free. Or take any other action on the Client‘s behalf. including. 9. 8. and the client is not authorized to resell or permit access to any such material or to make copies of any such materials for sale or supply to or use by others. but not limited to lost profit. which the client holds including. delay or loss of the use of the services or out of any breach of any warranty even if the members has been advised of the possibility of such damages. stock splits. except as required by law and applicable Exchanges provision. costs.4 Certain securities any grant the holder thereof valuable rights that may expire unless the holder takes action. without limitation. at the client‘s risk. loss of opportunity or damages that result from interruption. and expenses (including but not limited to lawyer‘s fees and penalties or cost imposed by any Exchange0 and proceedings arising from or in relation to the clients breach of nay provision of this agreement or nay third party‘s right arising out of the services rendered by the members pursuant to this agreement or any other wrongful act on the part of the client. materials which are made available by the member‘s services for the client‘s own need only. 9.3 The client agrees to reimburse to the members any and all claims. The client shall also be responsible for knowing about organizations related to securities.2 The client shall not furnish market information provided by the Exchange or the members to any other persons or entire for consideration or otherwise and in the event the client uses such information he shall do so at his own risk and cost.8. REEMBURSEMENT: 9. special Or consequential damages including.

com To the client: (at the address.2 Notwithstanding anything stated above. information or message. or message on the members on the member‘s Websites.1 Any notices or other communication to be given by any part to the other in connection with this agreement shall be in writing and shall be deemed duly served if delivered personally or sent by facsimile transmission or by prepaid registered post or by e-mail to the addressee at the address or (as the case may be). Mumbai. khatau building. Alkesh dinesh moby marg fort. maintenance calls and other similar matters by the members to the client may be communicated orally.nirmalbang. . or at such other address. then the members shall not be responsible for any losses the client may incur by reason thereof. of that party set opposite its name below. margin. 2nd floor. information.5 The members shall not be liable for any error or delay in. facsimile number or email address as the party to be served may have notified the other in accordance with the provision of this clause. 9. or omission from. SMS ‗BANG‘ TO 54646 E-MAIL: free@nirmalbang. communication relating to Contact at: 022-30272323 www. due to a reorganization or book keeping or data entry error. To the member at name of the person concerned: HEAD OFFICE:38-B/39. or nay loss or damage arising from or occasioned by the above. the client sells more securities than he actually owns or different securities from what he actually owns. fax number or e-mail address stated in the schedule). or (ii) Delayed. the e-mail or facsimile number (if any).If. interrupted or improper transmission or delivery of nay data. 10. any data. 10 NOTICES: 10.

no provision of this agreement can be. modified or amended unless agreed to in writing and signed by an unauthorized officer of the member. No waiver of any single breach or default under this agreement shall be deemed a waiver of any other breach or default. diminish. waived. Don‘t get misled by companies showing approvals/registered from government agencies as the approval could be for certain other and not for the securities you are buying. or prejudice the right of such party to require the performance of that . nor be deemed to be. altered. 12. relaxation or inaction by any party at any time to require the performance of any provision of this agreement shall in any way affect \.11. . intermediaries.1 No forbearance. Or any other provision of this agreement or be considered to be a waiver of any right. Do’s And Don’ts For Investors For Trading In Stock Market PLEASE Don’ts 1) 2) 3) Don‘t deal with unregistered brokers/sub-brokers. Except as specially permitted in his agreement. 4) Investors are advised not to indulge in any market manipulation of price of any scrip through their trading activity. ASSIGNMENT: The client shall not assign any right and obligation here under without obtaining the member‘s prior written consent. WAIVER: 12. unless specially agreed in writing. Don‘t fall prey to promise of guaranteed returns.

Don‘t blindly follow media reports on corporate developments. inform your DP. 10) Don‘t overwrite. 9) Don‘t share any sort of trading related password with anybody else. 12) Don‘t participate in any synchronization Trade.. always issue cheque in favor of Nirmal Bang security PVT Ltd. 17) Don‘t forget to cheque or scrutinize your Transaction details and holding statements received by you on a regular interval. misspell any data or not to provide any wrong information when you fillup your KYC. 16) POA is not compulsory for execution of PAY-IN. 14) Nirmal Bang securities PVT Ltd. will not held responsible for nay financial loss arising from violation of the said instruction.5) Don‘t leave the custody of your delivery instruction slip (DIS) book in the hands of nay intermediary/broker. as they could be misleading. . 15) Avoid off-market transaction of securities especially to third party. 11) Don‘t meet your PAY-IN through CASH or don‘t issue any cheque in favors of any employee of Nirmal Bang security PVT Ltd. In case of any unauthorized transaction. 6) Don‘t get carried away with onslaught of advertisement about the financial performance of companies in print and/or electronic media. 7) 8) Don‘t blindly imitate investment decisions of others who may have profited from their investment decisions. 13) Don‘t hand over signed delivery instruction slip (DIS) or cheques or any other documents to any persons including staff of Nirmal Bang securities PVT ltd.

margin call. Members-client agreement which from part of investors registration for dealing through brokers in the stock market. This is a golden rule that should be applied at all times. 10) Always pay your margin call in Future & option segment and maintain required margin in cash segment. verify the genuineness of the same on the exchanges website: http://www. In case of doubt of the transactions. what level and amount to investment are you comfortable with. Therefore.nseindia. http://www. hence do not share your login ID & password with anybody. take some time to evaluate your risk-bearing capacity. investors and requested to carefully read and understand the contents stated in the risk Discloser document. 4) Before signing please read and understand all the point of KYC‘S 5) Always update your correspondent address. 3) Please carry out due diligence before registering as client with any intermediary. would have the discretion to square off the position of the client. etc in your email ID as discloser by you in KYC. Nirmal Bang security PVT Ltd. 2) Always deal with the market intermediaries registered with the securities and Exchanges Board of India (SEBI)/stock exchanges. . since all the transaction will be deemed to be done by you only.bseindia.PLEASE DO’S 1) Know your risk: it is critical to understand where you stand and where you want to be. bank account details. In case of any shortfall or inadequate margin in your account. Further. electronic contract note. byelaws and circulars issued by stock exchanges/SEBI before investing in this market. 6) Give clear and unambiguous instruction to your broker/agent/depository participants 7) You will be sole responsible for your internet password. 8) Always insist on duly signed contracts notes from your brokers. regardless of what market experts tell you. 11) Always collect money receipt from the broker after every 9) Check all the related information like trade details. Know the rules regulation.

17) You should read and understand the utility of power of attorney (POA) for meeting the pay-in before signing the same.12) Always settle the through the normal banking channels with the market intermediaries. 26) In case of sale of shares. copy of PAN card of all account holders is to be submitted to the DP along with original PAN card.. spelling of the scrip/scrip on delivery instruction slip (DIS) correctly. 14) Investors should ensure delivery of due securities/payments of money to the broker immediately upon getting the contract note for sale/purchase and in any case. quantity. 18) Please note that DI slip is like a cheque book keeps it under safe custody. overwriting. 21) Joint holder of demat account should sign jointly on delivery instruction slip (DIS). 24) To open and operate your demat account. for verification. 19) Any correction. especially low price stocks. which show a sudden spurt in price or trading activity. the delivery of shares has to be done prior to the pay in sate for the relevant settlement and issues DIS from your own DEMAT account. 15) Be cautious about stocks. 13) Settle your dues on any payment to the brokers would be from your declared bank account only. . 22) Please strike out the unused blank places of multiple instructions on the delivery instruction slip (DIS) at the time of delivery DI slip to any personnel. on completion of the necessary procedures. 20) Please be aware at the time of writing the ISIN. 23) Check the delivery instruction slip (DIS) numbers are pre-printed and your account number (BOID) is pre-stamped. cancellation on the instruction slip made should be countered signed by you. before the prescribed pay-in day. 16) Please be informed that there are no guaranteed returns on investment in stock markets. 25) The demat account has a nomination facility and it is advisable to appoint a nominee to facilitate you‘re your heirs in obtaining the securities in your demat account.

standing instruction to your DP. Undersigned. circulars. Contacts your DP or visit CDSL‘s websites: www. .com phone no. If any unauthorized debit is noticed. (0522-3060071-079) Disclaimer: The above information has been assembled and after compilation presented with a general idea of the subject for the investor. For intense in Nirmal Bang a customer is expecting that he can buy share after deposited require check but he has to wait for 3 days and same happen with demand draft. The broker will not be liable for any. regulation and guidelines. This is not a message for improvement of broker client relationship. the investors should invest in this segment after proper knowledge or guidance from a qualified professional. you can give one-time.27) In order to receive all the credit coming to your demat account automatically. 2) Gap between management perception and services quality: Management might correctly perceive customer‘s want but not set a performance standard. consequential or incidental damages or loss arising out of the use of this information. 28) Registered for CDSL‘S SMART (SMS Alerts related to Transactions) facility. complaints@cdslindia. All these points are neither part of advertisement of solicitation nor a legal advice from Nirmal Bang securities PVT Ltd. This information is neither an offer to sell on solicitation to buy of the securities from the market. the BOND should immediately in for CDSL and the Main DP in writing. An email may be sent CDSL at. rules. Any action you choose to take in the market is totally your own 29) Registered for CDSL‘s internet based facility ―easl‖ to monitor your demat account yourself.cdslindia. 1) Gap between customer expectation and management perception: Management does not always correctly perceive what customer want. Like a form of an account should passed away from the all stages of processing but it mostly takes time of 10 for details. 30) If you have any quarries or have any confusion please contacts our helpdesk helpdesk@nrimalbang. I hereby confirm having read and understood the above mentioned matters. direct. This is not containing or interprets any Acts.

5) Gap between perceived services and expected services: This gap occurs when the customer misperceives the service quality. 2. 10. 2. 3. depositary services. mutual fund and equity distribution. Enhance data mining to improve risk management processes. Extensive product range. such as taking time to listen to customers and services them fast. Enhance customer through relationship managers. A client may be perceived wrongly like a infrastructure of Nirmal Bang but this will solved in new office of Nirmal Bang. 11. Personalized attention. Offer innovation products such as power Nirmal Bang signature client account. or incapable or unwilling to meet the standard or they may be held to conflicting standards. Understand local market dynamic. What a customer expect from the company: 1. 9. Wide range of services under one roof. 8. . 7. 24 hours and ease to access. Improved speed and quality of services 12. 6. Expanding geographical and online presence. commodities trading and customer‘s loans. Improve customer education through in-house equality research. Improve customer‘s interface and customer experience through technology.3) Gap between services quality specification and services quality: personnel might be poorly trained. 4. 3. 5. Provide a wide array of services such as brokerage. That is happen in Nirmal Bang 4) Gap between services delivery and external communication: Customers‘ expectations are affected by statement made by company representative and ads. Improve interface and customer experiences through research. Continually invest and quality of systems. What company offers to it customers? 1.


The research methodology implemented in this research repot primarily consists of personal interviews with those very investors in Lucknow city who invest through the life insurance companies in Lucknow cities. Data Collection: primary and secondary. To give an idea about the regulation of Mutual Funds. manages and implements the data collection process analyzes and communicates the finding and their implications. Sampling Design: Judgment sampling. To understand and analyze online trading at Nirmal Bang. To study some of the mutual fund schemes and analyze them observe the fund management process of mutual funds. Research Design: Descriptive Research Design. To get the Demat account opened of potential customers in favor of Shriram insight. Analysis of need and specialization of distribution of financial services. Data Collection Instrument: questionnaire and personal interview. To discuss about the market trends of Mutual Funds investment. To give a brief idea about the benefits available from Mutual Funds investment. designs the methods for collecting information. To improve the format of DSR (Daily Sales Report). To give an idea of the types of schemes available. Explore the recent development in the mutual in India. Research objectives:            To understand and analyze the market strategies of Nirmal Bang.RESEACRH METHODOLOGY The research specifies the information required to address needed issues. Sampling size: 100 Proposed Analysis Technique: graphs and charts .

The major purpose of descriptive research is description of the state of affairs as it exists at present. A structured questionnaire was constructed containing all perceptions about the different Life Insurance Companies can be made quite easily. Data Collection Instrument: Questionnaire and personal interview. This is one of the most effective and popular techniques used in surveys. I asked them about their Life insurance firms and tried to know that whether they are satisfied with it or not. Data Collection: primary and Secondary Primary Data was collected with the help of interviews conducted to the general public. If they invest then I asked them further questions related to my research work mention in the questionnaire. Secondary Data was collected from the firm‘s database to know how many customers is there in a particular in life Insurance Company the Lucknow city. to those only in Lucknow city who invest in Life insurance by the help of a Life Insurance firm.DESCRIPTIVE OF RESEARCH METHODOLOGY Research Design: Descriptive Research Design. Descriptive research includes surveys and fact-finding enquires of different kinds. . I have to move around the city and asked the people that whether they invests in the life insurances companies or not. Questionnaire: questionnaire is formal set of questions prepared to collect the required information. addresses and contract number of the customers were not available in the internet. Since the name. therefore an attempt was made to know all these details from the Life Insurance itself. The questionnaire can also reveal that which Life Insurance Companies in Lucknow city is more popular and which fir is not popular among the investors in the Lucknow city.

Sampling Design: Judgment Sampling Sample size: 100 Proposed Analysis Technique: Graphs and chart .Personal Interviews: Personal interviews were taken only from those people in the Lucky now city who invests in securities through Life Insurance Companies they were asked questions related to this research work and that mentions in questionnaire.







The companies should reveal all the information regarding any scheme so that investors can feel free to invest. 2.The new and different offers should be communicated to the large value of potential inventors so that the offers can hit the target. More exposure: Most of distributors want some more exposure for them clients from their share broking companies. Recommendation for the concerned companies: 1.FINDING & RECOMMENDATION During my project analysis I was very keen to find some keys areas which need to be taken care seriously in the future these are causing dissatisfaction among distributors. Most of distributors felt dissatisfaction with their brokers but some of the disappointing areas are- 1. Misconceptions. All risks should be communicated by distributors of financial servicesIt is very important for distributors to make the customers aware about all the risks involved and he could not blame for any loss to the company. Mass reach.There are many misconceptions in the mind of common people that Mutual funds. Full information. online share trading etc. 2. 4. by giving example of active investors various misconceptions should be removed. 3. Nirmal Bang is now providing super exposure p to 15 of the margin (cash segment) the step like this really creates satisfaction for the distributors. are only for ‗big ones‘ & they can‘t enter in this field and if they will enter they will suffer losses so. 3. Fewer offers: Most of companies lag behind in giving time to time offers in order to attract new customers. . Brokerage problem: Some companies have very high brokerage chares which create differences of market share of different companies and also dissatisfaction among distributors.

They come to cities (like in Lucknow) for various works. Simple procedure-many potential investors are computer illiterate so they never try their hand free. Employees should be trained.many potential investors are also trust in rural areas.5. this is the drawback to be overcome. many times they fail to make the offer understandable to the client. There should some special offers to attract them in share trading. Target rural areas also. 8. Some offers for women should be introduced to get a new share of market.It is very necessary for the employees to give an effective demo to the client about the use of various services of share broking etc. 7. . 6.

 The study of limited to the different schemes available under the mutual funds selected. .  The study is limited to selected mutual fund schemes  The lack of information sources for the analysis part.LIMITATIONS:  The time constraint was one of the major problems.


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