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PART-1 EXECUTIVE SUMMARY:
The present repot is prepared for the partial of M.B.A and as a part of curriculum. The survey is an attempt to determine and ―INDIAN BROKING INDUSTRY ANALYSIS WITH RESPECT TO NIRMAL BANG SECURITIES.‖ To pursue research area are Lucknow was chosen where the survey conducted through personnel interview. The data collection is an analyzed and some practical tools were applied to get inferences from the survey. The results are printed in the graphs and diagrams. The research report has two sections in its first section company and industry profile is given, where as second Research Methodology is given which includes samples design, analysis on sample and presentation is in the form of diagram and charts. 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. At the end of the report limitations, SWOT analysis, conclusion of the research and Appendix which includes questionnaire and the list of the city where the Sriram insight share brokers Ltd are running. Last there is Bibliography, FAQ, and Glossary that has the technical terms of the report.

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COMPANY PROFILE INTRODUCTION:
Nirmal Bang Group is one of the largest retail broking houses in India, providing the investors state of art services in capital markets in the country. The Group has memberships of Bombay Exchange Limited, National Stock of India Limited, Multi Commodity Exchange of India Limited, National Commodity and Derivatives Exchange Limited and is also a depository participant of NSDL and CDS (I) L, the depositories of the country.

Nirmal Bang Securities Pvt Ltd. is the stock-Broking arm of the Rs. 7,500 crore (approx) Nirmal Bang. With over 450 branches, 8000 employees (approx), 28 lakh investors, Nirmal Bang, with evolved into a premier financial supermarket providing a host of services including stockbroking, distribution of investment products, properly, property development, industrial investment, risk management, insurance products and consumer finance.

Founded in 1986 by Shri Nirmal Bang, the Nirmal Bang Group is recognized as one of the largest retail broking houses in India, providing an array of financial products and services. Our retail and institutional clients have access to products such as equities, derivatives, commodities, currency derivatives, mutual funds, IPOs, insurance, depository services and PMS.

Nirmal Bang Securities Private Limited, a retail broking house, provides an online share trading platform to customers to trade on equities, derivatives, commodities, currency derivatives, insurance, depository services, and subscription to initial public offerings and mutual funds in India. The company offers daily and company reports, stock ideas, and sector updates. It also

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provides franchising opportunities to individual to use its infrastructure by being its channel partners

NIRMAL BANG consultant:
As the flagship company of the NIRMAL BANG Group, NIRMAL BANG Private Limited has always remained at the helm of organizational affairs, pioneering business policies, work ethic and channels of progress. NIRMAL BANG believes that they were best positioned to venture into that activity as a Depository Participant. They were one of the early entrants registered as Depository Participant with NSDL (National Securities Depository Limited), the first Depository in the country and then with CDSL (Central Depository Services Limited). Today, It service over 1Lac customer accounts in this business spread across over 350 cities/towns in India and are ranked amongst the largest Depository Participants in the country. With a growing secondary market presence. It has transferred this business to NIRMAL BANG SECURITIES PRIVATE LIMITED (NBSPL), their associate and a member of NSE, BSE, and MCX & NCDEX. Throughout our history, we have fostered one overriding purpose — to provide each client with personal service and quality work. By adhering to this principle, we have grown to become a successful land well-respected of highly qualified professionals. The Group is

headed by Mr. Dilip Bang and Mr. Kishore Bang who bring forward industry expertise, insight and most importantly, create an environment of unmatched commitment to clients. We are registered members of the Bombay Stock Exchange Limited (BSE), National Stock Exchange of India Limited (NSE), Multi Commodity Exchange of India Limited (MCX), National Commodity & Derivatives Exchange Limited (NCDEX), National Multi Commodity Exchange of India Limited (NMCE) and MCX Stock Exchange Limited and are also depository participants of NSDL and CDSL.

path breaking innovations in service. comprehensive infrastructure and total customer-focus has secured for them the position of an emerging financial services giant . NIRMAL BANG --. to provide new ones.Early Days: The birth of NIRMAL BANG was on a modest scale in 1986. towards building a reputation as an integrated financial services provider. NIRMAL BANG Securities Private Limited. to innovate. cutting-edge technology. and carved inroads. Since then. versatility in service and finally totality in service. They have utilized their experience and superlative expertise to go from strength to strength…to better their services. It began with the vision and enterprise of a small group of practicing Chartered Accountants who founded the flagship company.‖ Mission: ―To work together with integrity and make customer feel valued.Page |4 Vision: ―TO CREATE VALUABLE RELATIONSHIPS AND PROVIDE THE BEST FINANCIAL SERVICES MOST PROFESSIONAL.‖ Core value: ―RESPECT OUR COLLEAGAUES AND THE BUSINESS ITSELF. diversify and in the process. evolved NIRMAL BANG as one of India‘s premier integrated financial service enterprise. It started with consulting and financial accounting automation. offering a wide spectrum of services. And they have made this journey by taking the route of quality service. Their highly qualified manpower. Thus over the last 20 years NIRMAL BANG has traveled the success route.

Trade execution transparency. Customer relations and last but not the least Customer acquisition. in the best interests of all concerned. risk monitoring and superior service shall have topmost priority. With the experience of years of holistic financial servicing behind them and years of complete expertise in the industry to look forward to.Page |5 enjoying the confidence and support of an enviable clientele across diverse fields in the financial world. which stands solid on their fortresses of financial strength . HISTORY: . they have now emerged as a premier integrated financial services provider. Customer education. they can look with pride at the fruits of their mastery and experience–comprehensive financial services that are competently segregated to service and manage a diverse range of customer requirements. Their values and vision of attaining total competence in their servicing has served as the building block for creating a great financial enterprise. Customer support. And today.their various companies. timely settlements. Business Focus: The focus of the businesses the Customer service.

The Group is headed by Mr. we have fostered one overriding purpose — to provide each client with personal service and quality work. We are registered members of the Bombay Stock Exchange Limited (BSE). Our retail and institutional clients have access to products such as equities. . National Stock Exchange of India Limited (NSE). Multi Commodity Exchange of India Limited (MCX). create an environment of unmatched commitment to client. Kishore Bang who bring forward industry expertise.Page |6 Founded in 1986 by Shri Nirmal Bang. we have grown to become a successful and well-respected of highly qualified professionals. Throughout our history. IPOs. By adhering to this principle. insight and most importantly. they could be called the first brokers. the Nirmal Bang Group is recognized as one of the largest retail broking houses in India. Dilip Bang and Mr. commodities. In 12th century France the courratiers de changes were concerned with managing and regulation the debts of agricultural communities and behalf of the bank. derivatives. providing an array of financial products and services. National Multi Commodity Exchange of India Limited (NMCE) and MCX Stock Exchange Limited and are also depository participants of NSDL and CDSL. disproving the belief that these were originally invented later by Italians. depository services and PMS. National Commodity & Derivatives Exchange Limited (NCDEX). Because these men also trade with debts. insurance. mutual funds. Historian Fernando Braudel suggested that in Cairo in the 11th century. Muslim and Jewish merchant and already set up every form of trade association and had knowledge of many methods of financial dealings. currency derivatives.

and merchant banking. As their primary place for trading. but actually. April 5. In 1602. The Dutch ―pioneered short selling. the Van der Beurze had Antwerp. much as we know them‖ (Murray Sayle. which let shareholders invest in business venures and get a share of their profits or losses. option trading. the family Van der Beurze had a building in Antwerp where those gathering occurred. London Review of books XXIII. China. Japan. 2001). There are now stock markets in virtually every developed and most developing economy. . an informal meeting. Venetian market began to trade in government securities. It was the first company to issue stock and bonds. Germany and France. This was only possible because these were independent city states not ruled by a duke but a council of influential citizens. the Dutch East India Company issued the first share on the Amsterdam stock exchange.7.‖Japan Goes Dutch‖. Canada. Until then. debt-equity swaps. The Dutch later started joint stock companies. as most of the merchants of that period. The idea quickly spread around Flanders and neighboring countries and ―Beurzen‖ soon opened in Ghent and Amsterdam. and in 1309 they became the ―Bruges Beurse‖ institutionalizing what had been.Page |7 A common misbelieve is that in late 13th century Bruges commodity traders gathered inside the house of a man called Van der Beurze. In 1351 the Venetian government outlawed spreading rumors intended to lower the price of government securities during the 14th century. with the world‘s biggest market being in the United stated. Units trust and other speculative instrument. In the middle of the 13th century. 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. UK.

Rakesh Bhandari Chartered Accountant . Bang Director Mr. Dilip M. Bang POSITION Director Mr.Page |8 BOARD OF DIRECTORS OF NIRMAL BANG: NAME Mr. Kishor M.

Monika Bafna Chartered Accountant Mr. Deepak Patel Chartered Accountant Mr.Page |9 Mr.Anup Agarval Chartered Accountant Mr.Brijmohan Bohra Chartered Accountant Miss. Sunil Jain Chartered Accountant Mr.Suvinay Sharma Chartered Accountant Mr.Naresh Samdani Chartered Accountant Mr. Deepak Agarval Chartered Accountant Mr.Brijmohan Bohra Company Secretaria PRODUCT AND SERVICES: PRODUCTS:     Mutual fund schemes Portfolio Management System Shares – online and offline Bonds .

In addition to this they also provide advisory services and distributions for funds. and Bombay Stock Exchange Ltd.  Commodities trading on National Commodity and Derivatives Exchange India (NCDEX) and Multi Commodity Exchange of India Ltd.    Daily research reports and market review (High Noon & Eagle Eye) Pre-market Report Daily trading calls based on Technical Analysis mutual . Dial-n-Trade Portfolio management services. (MCX). (NSE). and Derivatives trading on the National Stock Exchange of India Ltd. (BSE). Online trading services. Fundamental and Technical Research services.        Depository services. IPO Services.P a g e | 10    Fixed Deposits Commodities Currency SERVICES:  Equities.

Normally to buy shares. 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). you have to place (ensure availability of limit) 100% of the order value. you make profit. which allows you to invest in shares. margins . derivatives (Future and Option) and other financial products. If. we offer you products for every investment need of yours. while to sell shares. you take buy/sell position in stocks(s) with the intention of acquiring off the position within the same settlement cycle. In margin trading. 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. 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. Trading in shares: Nirmal Bang offers you various options while trading in shares. you need to have shares in your Demat account. during the course of the settlement cycle. mutual funds. Margin Trading: You can also do an intra-settlement trading up to 3 to 4 times your available funds. Cash trading: This is a delivery based system.P a g e | 11   Personalized Advice Live Market Information WIDE OPTION WHILE TRADING AT NIRMAL BANG: A product for every need: Nirmal Bang is the most comprehensive website. However.

This will minimize the loss cover at the time of taking the position itself. There by it gives a clear view of maximum downside involved in a particular position at a particular price. money is certified to your bank a/c the same evening & not on the exchange payout date.33% of the order value as margin. you can leverage on your trading limit by taking buy/sell positions much more than what you could have taken in cash segment. ‗cash on spot‘ may work the best for you. the risk profile of your transaction goes up. you have to place 33. Nirmal Bang won‘t levy a normal margin ranging from 21% to 50%. 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. BTST: . Spot Trading: This facility can be used only for selling you is demat stocks which already exist in you‘re demat account. on selling shares through ―cash on spot‖. When you are looking at an immediate liquidity option. 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. Margin PLUS will give a much higher leverage in your limits. At present. Margin PLUS Trading: Through Margin PLUS you can do an intra-settlement trading up to 10 times your available funds. It would block he maximum loss which customer can suffer. With margin trading. However.P a g e | 12 are blocked only to safeguard any adverse price movement.

. 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. without you having to Waite for the receipt of shares into your demat account. change of its getting executed are better. all market order placed which are not executive fully. 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. when the Exchanges is open for trading). Trading in NSE/BSE: through Nirmal Bang you can trade on NSE and BSE. Therefore. it becomes a limit order for the balance quantity at the last traded price..e. Market Order in BSE: Explanation: Market order can be placed only during market hours (i. In case of market order for NSE. 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.P a g e | 13 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. 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 actual transaction can be at a price more favorable than the price specified.

P a g e | 14 Allow you to place a buy/sell order at a price defined by you. Partial match is possible for the order and the unmatched portion of the order is cancelled immediately. the order quantity is disclosed in full to the market. GTD and IOC Order: A Good Till cancelled (GTC) order remains in the system until the trading members cancels it. GTC. another 200 is automatically . 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. After this traded. For example. 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. The execution can happen at a price more favorable than the price. limit orders can be placed by you during holidays & non market hours too.the status of any order is updated on real-time basis in the Order Book. 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. an order of 1000 with a disclosed quantity condition of 200 will mean that 200 is displaced to the market at a time. Online confirmation of Order and trade: You get online confirmation of orders and trades. The entire process is fully automation and there are no manual interventions. which is defined by you. As soon as you place your order they are validated by the system and sent to the exchange for execution. However. 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. the system cancels this order if it is not trade within a number of days parameterized by the Exchanges. Disclose Quantity (DQ) Order: Normally. falling which the order is cancelled from the system.

305. in the event the price rises above his buy price ‗A‘ would like to limit sell order specifying a stock loss trigger price Rs.P a g e | 15 released soon till the full order is executed. Stop Loss by Order: ‗A‘ short sell reliance shares at Rs.e. eligible for execution by being taken up in the matching process of the exchange) and then on behave like a normal limit order. The order remains passive (i. the order becomes activated (i. When a stop loss trigger price (SLTP) is specified in a limit order. the order becomes one which is conditional on the market price of the stock crossing the specified SLTP. 325 in experience that the price will fall. 305 and a limit price of Rs. 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.e. 300. 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. 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‘. Trade in derivatives: Future market: . 300. the orders get converted into a limit sell order at RS. It is used as a tool to limit the maximum loss on a position. Once the last trade price touches or crosses Rs. not eligible for execution) till the condition is satisfied. Once the last traded price of the stock reached or surpasses the SLTP.

you can create position order option and take advantage of more trading opportunities. For this. have been enabled for future trading. on a before a specific date. To take the buy/sell position on index/stock option. which is called premium. . Buy paying lesser amount of premium. Calculate index and now your margin are tools to help you in calculating your margin requirement and also the index & stock price movement.P a g e | 16 Through Nirmal Bang you can now trade in index and stock futures on the NSE in future trading. you take buy/sell position in index or stock (S) contract having a longer contract period of upto 3 month. Trading in FUTURE is simple if. which meet the certain liquidity and volume. during the course of the contract life. Presently only selected stock. rises in case you have a by position or sell in case you have a sell position). which gives buyer the right to buy or sell shares at a specific prices.e. There is now obligation on the buyer to complete the transaction if the price is not favorable to him. 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. Option market: An option is a contract. you can leverage on your trading limit buy taken buy/sell position much more that what you could have taken in cash segment. you make a perfect. the buyer has to pay to the seller some money. the price moves in favor (i. 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. you have to place certain % of order value as margin. With option trading.

which helps you keep. Just fill in investment amount. . IPO calendar. DEMAT SERVICES OF NIRMAL BANG: Company offering Nirmal Bang is a registered member (Depository participant) of CDSL. the period of investment and the frequency of investing and submit. 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.P a g e | 17 Systematic investment plans (SIP): SIP allows you to invest a certain some of money over a 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. keep on talk of the IPO markets. Portfolio valuation on the account statements. dematerialized) holdings. Why NIRAML BANG Demat Account?    Demat A/C free open. prospectus/offer document. Demat access through internet and phone. Transfer-in: we can convert to existing mutual funds into electronic more through a transfer-in request. We will do the rest for you automatically investing periodically for you. Systematic withdrawal plan: This allows you to withdraw or certain some money over up period of time periodically. and IPO analysis are few of the features. In this system. physical security holding are converted into electronic (or in other words. recent IPO listing.

From the very beginning of the relationship. Special rates for stock market intermediaries and sub brokers. adding value and transform vision into reality. In the process. clients today require personalized solution and greater flexibility and responsiveness than ever before.P a g e | 18    Online execution of transactions at branches. And we seek to provide unmatched services to each client and place him as a partner at the center of everything we do. Our professionals are always ‗on call‘. no matter what size. Timely services: In an increasingly competitive environment. Transaction update from back-office four times a day. . as a long-term relationship. we work closely with every client to identify his financial goals and risk tolerance levels and leverage our strength of the product offering. mutual funds and insurance. We value each client. 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. research and financial strength to help achieve his goals. Diverse services offering: In addition to traditional broking services. WHY PEP0PLE GOES TO NIRMAL BNAG FOR SHARE TRADING: Client Focus: Client relationship from the core of our business. we become an professional partners. creating opportunity.

P a g e | 19 We provide them services throughout the year and not just at the end of the year. Client interface: . providing continuity. 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. responsiveness and a point of easy access to the firm. Infrastructure: We believe or best infrastructure gives a significant advantage allowing us to provide efficient. each of our clients is assigned a specific team member who ‗owner‘ the relationship. We speak and act to ensure transparency at all levels and in everything we do. At the same time. integrity and confidentiality. Able team: We have developed a strong and enduring team by recruiting from leading graduate and postgraduate universities and promoting from within. We believe such service is essentials for delivering solution and constructive relationship. 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 us. Our team work together to provide superior results to our client. Culture: We strive to maintain standards at all times and lay emphasis on honesty. The financial strength of the group helps in future building the network and infrastructure to cater to the larger market. transparent and qualitative services.

multi-features graphs. franchises and all our clients.com is comprehensive and provides online feeds. Investors also have access to a wide range of financial news. Our websites www. This also gives u rte advantage of scalability in terms of location and size of our planned operations. . We provide telephonic and chat support for technical and functional issues of branches. 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.nirmalbang. The website also has a provision for creating portfolios and monitoring them on a regular basis. leased ISDN lines and LAN network. net trading and provides online feed. which are linked to the trading platform. depository accounts and research reports. Our online trading portal at www. This is one of the top most back office software in the industry. We have India‘s best single screen Multi Exchanges Trading Software platform.nirmalbang. Our entire centers across the country are connected through our own network. It user-friendly navigation allows easy viewing of trading accounts. online monitoring. online payment gateways and automatic password mailer utility for better security. information and various research reports facilitating quick decision-making. Ltd.P a g e | 20 We have trading terminal (both direct and indirect). It has the capacity to process over one lakh traders in a five minute frame. The high-end IBM serves with sophisticated security features that we use caters to trading points across the country. net trading portfolio tracking tool. control terminal (administration terminals) and back office support terminal (settlement terminal) across all location and centers.com is equipped with facilities like all segment broadcasts. we use the lidha Didha system of Apex Soft cell Pvt. MPLS and internet. Back office: For back office operations.

trading technology and portfolio management. They have a strong experience in trade execution and understanding of order flow dynamics. while efficient risk management software provides online MTM margin data to branches and franchisees. holding and portfolio valuation reports as well as trading to delivery activity reports. We also have the requisite infrastructure needed to handles STP.P a g e | 21 Our operation teams has an easy-to-navigate client login system. upload and download and download information to or from exchanges. market structure. Experienced professional: Our teams of professional consist of individual with significant experience in securities trading. bank and depositories. help our clients to determine the price at which they buy and /or sell. short-terms and long-term tax 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. bills and ledgers of trading accounts and cash management services for efficient and effective fund management within the group. which is used to generate activity reports. support units to ensure delivery notes. Our people from them cornerstone of the business and their expertise and motivation delivery of exceptional solution and services to all our clients. Our online position monitoring system ensures better risk management and surveillance from our head office as well as branches and franchises. A well-equipped risk management department ensures that the delinquency rates are minimal. 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.

sectors. marketing or . companies and individual stocks. accounts. we are the first choice for our clients because we among the very best at trade executive solution and assets management services. Most of all. At Nirmal bang. We have a strong and vibrant workforce in every field or our activity. Nirmal Bang Group‘s business strives the largest number of common people. Management philosophy: Nirmal Bang Group‘s business ventures are highly successful due to our Management philosophy. person-to-person relationship that keeps delivering true added value. Consider these: Equity* /commodity/ currency*/mutual fund/IPO/PMS/insurance/DP products.P a g e | 22 We believe. Human Resources : Human resources are the key to any services sectors industry. system. be it research. Research Expertise: Our research team is headed by two senior research analysts who have more than 15 years of experience in this field. each and every professional is focused on turning the initial trade or investment into a collaborative. Our research reports are backed by in-depth research and analysis of emerging as well as current market trends. our research analysts also appear on leading business news channel where they share their insights on the market. the Group views every employee as a potential partner in business. Features of this include total empowerment of its employee. Our team of experienced fundamental research and technical analysts provide reports on industries. Group Companies has also been instrumental in creating innumerable indirect jobs in the communities they serve. Besides. decentralized decisionmaking process and freedom of action.

. viz. etc with proven track records. With the manpower strength of over 1100 employees... Technology used in Nirmal Bang: Stock-broking being a process intensive activity. qualified & talented team of professional qualified CA‘s. speed. convenience. Our continuous strive to provide best services to our clients. All our branches are connected through Wide Area Network (WAN) and are served by a centralized back office processing system.s. accuracy. We specialize in building long term relationship with our customers by providing them with the four things they desire most. This is why Nirmal Bang is technology driven. each client at Nirmal Bang is special. reliability and personalized services. round-the-clock system availability and system securities are of paramount importance and technology forms the backbones of the business. results in receipt of not a single Arbitration Award against the company since its inception. Engineers. issues such as speed. the Company is managed by a highly motivated. 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. MBA.P a g e | 23 networking. which enables clients to obtain up to date information online at the click of a button Customer Focus: Despite a rapidly expanding client base and a dizzying increase in transaction volumes.

one can access a stockbroker's website through an Internet-enabled PC and can place orders. In online trading. Highlights  Streaming quotes  Self-execution and instant confirmation  Complete control over their trading decisions  Can access accounts Online . derivatives etc with the other investors. It enables the investor to electronically connect (through Internet) to buy or sell stocks.P a g e | 24 ONLINE SHARE TRADING AT NIRMAL BANG Online trading means trading/investing in equities. Online trading started in February 2000 when a couple of brokers started offering an online trading platform for their customers. commodities etc through the Internet. derivatives.

V. II. Dial n Trade:-call toll free number to place orders through telebrokers. III.P a g e | 25  Convenience of trade  Wide access to historical charts and past data BENEFIT OF ONLINE TRADING I. bank and de-mat account with digital contracts removers all paperwork. IV. Instant credit and transfer:-instant transfer of funds from bank account of the choice to Nirmal Bang trading account. Trade anywhere:-enjoy the ease of trading from any part of the world in a completely secure environment. investment calls and live market commentary. . Freedom from paperwork:-Integrated trading. Timey advice:-make informed decisions with expert advice.

After-hour orders:-place order after market hours. Real-time portfolio tracking:-benefit from real-time information for investment and current portfolio value. Advantages: Live Streaming Quotes  Access all Trading Calls  Advanced Charting features  Create your own technical rules for trading  A Single Trading Screen for all segments OFFLINE SHARE TRADING AT NIRMAL BANG In offline trading the investor places orders with the stockbroker either verbally (personally or telephonically) or in a written form (fax). Highlights:  Trading over the phone  No access to live market watch  Absence of online Fund transfer . This may be because he is not comfortable in accessing the Internet.P a g e | 26 VI. VII. which get executed as soon as the markets opens.

P a g e | 27 Merits of offline trading  Low brokerage  Less margin  Flexibility in credit period  Customized advice Demerits of offline trading  Problems in getting in touch with the broker  Limited clientele  Problem of attention from the broker due to load  Reliance on the broker‘s information  Customer has to believe what the broker says  Broker Might not give the best price  Reconciliation of account and cash settlements .

Company‘s research team provides tremendous research calls to their clients with high. It means company is armed with proper resources to fight any adverse situation. Opportunities:  The growth of capital market is very high. Investors are now ready to invest their money in this market because the returns is much higher compare to other place for investment. Weakness: Investors are not completely aware of Nirmal Bang. so company has good opportunity to extend its branches all over the country.  The market share of the company in commodity and equity market in terms of turnover is not significant. Success records and generates level of satisfaction level of satisfied to client. Professional from different fields Nirmal Bang is a well capitalized group with net worth of 3500 crores. It means volume will increase year by year in this sector. Company has not come yet with . so the brand value of the company not yet created. Company is unaffected in this global recession which shows company‘s never say die.  As Nirmal Bang having its presence in 36 location of the country. so they are ready to bear factors associated with it.P a g e | 28  Paperwork  Geographical Restrictio SWOT ANALYSIS OF NIRMAL BANG: Strengths:         Company having young management team which consist of very talented and knowledge. Spirits.

so investors now investing their money at much safer place instead of this market. this is a good chance for the company to be a public limited company which will help company to get money created brand awareness in this market.P a g e | 29 its own IPO. REFERENCE . STRATEGY: The main strategies used in training were as follow. CALLED CALLING Called calling means to go at different corporate houses and to meet different People and to get their visiting card by it we get lead and our immediate task was to call them & to fix appointment. Threats:  Company has a face a tough competition from major market leaders. Apart from given data we also brought latest business directory. so it will be a difficult task for Nirmal Bang to sustain itself in this cut throat competitions. After that we were required to convert that appointment into closure. DATA CALLING In data calling we were provided data of mobile numbers and our job was to generate appointments. We called to different business people and tried to generate appointments.  Recently financial a huge loss.

The total world derivatives market has been estimated at about $791 trillion faceoff nominal value.. After that our job was to follow STOCK MARKET 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. Moreover. friends. The since of world stock market was estimated at about $36. relatives etc. So it was another process of generating lead. 11 times the size of the entire world economy. In marketing or selling we can never neglect references & they always play a major role. cannot be directly compared to a stock or a fixed income security. STALL ACTIVITY Stall activity means to make stall at public place. the vast majority PF derivatives ‗cancels‘ each other out (i. because it is stated in terms of national values. a derivatives ‗bet‘ on an event occurring is offset by a comparable derivatives ‗bet‘ on event not occurring) . The value of the derivatives market.6 trillions US at the beginning of October 2008.P a g e | 30 Another important strategy was to use our reference means our family. Then our job was to give them a newspaper with brochures and to take their name and contact number. which traditionally refers to an actual value.e.

the Amex. OTCBB and Pink sheets. the NASDAQ. as well as on the many regional exchanges.g. e. The stock market in the united states in the united states includes the trading of all securities listed on the NYSE Euro next. the Deutsche Borse.P a g e | 31 Many such relatively illiquid securities are valued as market to model. 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. rather than an actual market price. European examples of stock exchanges included the London Stock Exchange. TWO MAJOR STOCK MARKETS  BSE (BOMBAY STOCT EXCHANGE) ▪ NSE (NATIONAL STOCK EXCHANGE) .

The executive director as the chief executive officer is responsible for the day today administration of the exchanges. A governing board comprises of elected directors. upholds the interests of the investors and ensures redressed of their grievances.69 Lakhs. whether against the companies or its own members brokers. which decides the policies and regulates the affairs of the exchanges.69 Lakhs However the averages daily turnover of the exchanges during the year 2001-2002 has declined to Rs. while providing an efficient and transparent market for trading in securities.It has an evolved over the years into its status as the premiere stock exchanges in the country. 1224. It may be noted that the stock exchanges the oldest one in Asia. Mumbai.P a g e | 32 BOMBAY STOCK EXCHANGES This stock exchanges. as a voluntary non-profit making association. which was founded in 1878. The average daily turnover of the exchange during the year 2000-01 (April-March) was Rs 3984. The average daily turnover of . 7 public representatives and an executive director is the apex body. even older than the Tokyo Stock Exchanges. It also strives to educate and enlighten the investors by making available necessary informative inputs and conducting investor‘s education programmers.10 crores and number of average daily trades 5. 2SEBI nominees. popularity known as ―BSE‖ was established in 1875 as ―The native share and stock brokers associations‖. The exchanges.19 crores and average numbers of daily trades 5.

The A group comprises equity shares of such companies. The broker feeds his buy/sell quotes in his terminal.P a g e | 33 the exchanges during the year 2001-2003 has declined and number of average daily trades during the period is also decreased. A jobber is a broker who trades on his own account and hence offers a two-way quote. 2001 etc. It accelerated its computerization programme in response to the thereat from NSE. NATIONAL STOCK EXCHANGES: The NSE was incorporated is now 1992 with an equity capital of Rs 25 crores. introduction of compulsory rolling settlements in all scripts trades on the exchanges. Shares listed on the BSE are classified into two groups. also referred to as A and B groups. Investors have to transact via a broker. abolition of account period settlements. The international securities consultancy (ISC) of Hong Kong has helped in setting up NSE. which have a large volume of business in the secondary market. because of this NSE has adopted a quote driven system and an order driven system. Jobbers play an important role on the BSE. . Presently. Specified and cash. have adversely impacted the liquidity and consequently there is a considerable decline in the daily turnover at the exchanges. viz. to the main server at the BSE. 2001. The Ban on all deferral products like BLESS AND ALBM in the Indian capital markets by SEBI with effect from July 2. which is linked. The BSE switched from the open outcry system to the screen based system in 1995. The bid price reflects the price at which the jobber is willing to sell. about 150 shares have been classified as A group shares the rest belong to B group. The average daily turnover of the exchanges present scenario is 110363 (Laces) and number of average daily trades 1057(laces). With effect from dec31.

Facilitate equals access to investors across the country. Features of National Stock Exchange:Nation-wide Access . besides operating the traditional market for equities. Meet international securities market standards. 2. Impact fairness. time and volume conditions. Shorten settlement cycle.. The NSE. nonconvertible debentures etc. 4. and transparency to securities. infrastructure leasing and financial services Ltd and stock holding corporation Ltd. A two tier administrative set up involving a company board and a governing aboard of the exchanges is envisaged. banks and SEBI capital markets Ltd. the National Stock Exchange seeks for:1. Establish a notion-wide trading facility for equities. is a separate segment of the NSE as distinct from the capital market segment. 5. and hybrids. NSE is a national market for shares PSU bonds. debt. also operate a wholesale debt market. debentures and government securities since infrastructure and trading facilities are provided. efficiency. convertible debentures. Inaugurated in 1994. The NSE has adopted fully automated screen based trading system. 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.P a g e | 34 ISE has prepared the details business plans and installation of hardware and software system. insurances companies. The promotion for NSE were financial institutions. which allows trading members to trade from their offices through a communication network. Besides there is flexibility with regards to price. NSE is not an exchange in the traditional sense where broker own and manage the exchanges. 3.

All the key information is updated on a real time basis. High quality services to members are maintained through efficient.P a g e | 35 The NSE provides nation-wide trading facilities and equal access to investors all over the country. All these information are updated online. the best buys and sells available in the market the quantity traded in that security etc. Rather the market will operate with all market participants stationed at their offices and making use of computer terminals. . the rate at which their deal has taken place the counter party and the time at which the trade was executed. the traders executed and other market related information. Automation-Screen Based Trading The NSE market is a fully automated screen based trading environment. There is no trading floor as is prevalent in the traditional stock exchanges. enabling the member to make better decisions. The trading system also provides complete market information online through various inquiry facilities. without fear of large orders influencing the price of the market. As a result it is possible for the investors to know the actual position of the market before placing the orders. Investors can know whether their orders have been placed into the system. Complete Transparency The system provides complete transparency of trading operations. to enter orders. By enabling the trading members and participants to hide their identity. it allows placing large orders into the system by the big players. nor do the dealers use the telephone to arrange money market deals as was the practice. The response time is very quick. The system at any point of times gives the member complete information on the total order depth for a security. to receive the current market status. transparent and fair trading systems and procedures. Investors can also know the fate of the orders almost as soon as they are placed with trading members. Anonymity of the Trading Member s Identity The identity of the trading member placing the order is not disclosed in the NSE computer trading system.

When entering an order. Their back office load is reduced considerably as the system generates details of trade undertaken. Safety of securities is enhanced in a depository and there is no problem of bad delivery.P a g e | 36 The trading system is top on the line and user friendly. The trading system provides enormous flexibility to trading members. a trading member can place various conditions in terms of price. theft or forgery. They can install a computer network of their own to receive their own client orders. Large growth opportunities also emerge on the NSE. as Foreign Financial institutions prefer the automated and regulated market. They can trade from their respective offices and can make use of full back office support for trading. To Trading Members They can provide efficient service to their clients. Price and brokerage are separately shown on contract notes. loss. Date and time of trade are indicated. They can benefit from high growth in trading volumes which typically takes place when on automated trading system is introduced. Flexibility in trading. There is no need to occupy office premises near a stock exchange unlike what was previously required this can lead to reduced establishment costs. The system will be better monitored and regulated ensuring a fair deal to investors. Some of its new features include a corporate hierarchy which gives the trading members an opportunity to set up a network of branches and exercise control on their orders. leading to a large increase in business. time or size. . Benefits from NSE:To Investors The investor is assured of the best price in the market. which they can interface with the exchange.

which reduce your capital gains.  He should be an Indian citizen. Further if these securities are held or along term before selling them.  The minimum required education is a pass in 12th standard examination. if you are in the business of buying and selling securities.  He should not be engaged in any other business connected with a company.  He should be neither a bankrupt nor compound with the creditors. your cost of acquisition can be increased by the indexations. In case these securities are held as stock-in-trade i. Taxation of Indian Resident: The below mentioned FAQs are restricted to tax implication of the resident investors only. is not available on debenture and bonds. The profit and loss from purchase and sell of securities will be taxed under the head ―profit of gains of business or profession‖.P a g e | 37 MEMBERS OF THE STOCK EXCHANGE: The securities contract regulation act 1956 has provided uniform regulation for the admission of members in the stock exchanges. . indexation benefits. You can also claim deduction for expenses incurred these securities along with cost of buying these securities. 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.  He should not be convicted for fraud or dishonesty.  He should not be a defaulter of any other stock exchange. The qualifications for becoming a member of a recognized stock exchange are given below:  The minimum age prescribed for the members is 21 years.e. Tax on transactions Of Buy and sell securities: Yes.

furniture. 4: 7% Gold Bonds. 5: National Defiance Gold Bonds 1999. 2: personal effect such as jewelers. . 6. provided such securities are held as investment by you. Transfer of a capital asset: Transfer includes sale. 1999 notified by the central government.P a g e | 38 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‖. 1980. exchanges or relinquishment of the asset of the extinguishment on any right there in or compulsory acquisition thereof under any low. and motor car held for personal use. In case these securities a new held as stock-in-trade. is also treated as transfer. debenture or warrants allotted to employee under approved EFOP scheme. but does not include 1:stock-in-trade. (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. Gold deposit Bond under the gold deposit scheme. Capital gain/loss: Capital gain/loss means any profit or loss arising from transfer of a capital asset affected in the previous year. If you are in the business of buying and selling securities under the head ―profit or gains of business or profession‖. whether or not connected with his business or profession. Capital Assets: Capital asset means property of any kind held by an assesses. the following specific transaction are not regarded as transfer e.g. 3: 61/2% Gold Bonds. In a case where as asset is converted by the owner or treated by him. However.

000/- . if the resulting owner sells the capital asst subsequently. 10.2005 for Rs 1. Long Term Asset: If the shares. 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. 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 period of holding computed from the date acquisition to the date immediately preceding its sale. The cost of acquisition of the original shares would stand reduced correspondingly.P a g e | 39 (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. In case of demerger. If the shares. Example: You purchase 1000 shares of ACC on 10. the cost of acquisition shall be deemed to be the cost at which the capital asset was acquire by the previous owner. 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. Short term Asset: Capital is divided as long term and short term with reference to the period of holding of the asset by you. In all other cases. 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.6.

Overtime. exchange traded funds.000/Calculation of long term capital gain would be as follows: Amount in Rs Sale consideration 1. 14. 30.000 Cost of 1000 shares purchased on 10. The rise of the institutional investors has brought with t some improvement in market operations.8.6. the government was responsible for ―fixed‖(and exorbitant) fees being markedly reduced .2005 You sold these shares on 12. worldwide. buyers and sellers were individual‘s investors. Pension funds.P a g e | 40 You were allotted 1000 shares as bonus on 11.8. hedge funds investors groups. mutual funds. This. 193 MARKET PARTICIPANTS: A few decades ago. market have become more ―institutionalized‖ buyers and sellers are larger institutions (e.807 Cost of one thousand bonus shares nil Long term capital 15. insurance companies .2000 110000*406/389 (indexation benefits) 1. 30.g. both long family histories (and emotional ties) to particular corporations.2006 for Rs 1. index funds. such as wealthy businessman. banks and various other financial institutions).

but only after the large institutions had managed to break the brokers‘ solid fronts on fees.  Magadh Stock Exchange Limited  Meerut Stock Exchange Ltd. but only for large institutions.  Mumbai Stock Exchange . Act. (They then went to ‗negotiated‘ fees.  Bangalore Stock Exchange  Bhubaneswar Stock Exchange Association  Calcutta Stock Exchange  Cochin Stock Exchange Ltd.  Jaipur Stock Exchange Ltd  Kanara Stock Exchange Ltd  Ludhiana Stock Exchange Association Ltd  Madras Stock Exchange  Madhya Pradesh Stock Exchange Ltd. corporate governance (at least in the west) has been very much adversely affected by rise of (largely ‗absentee‘) institutional ‗owners‘ NAME OF THE STOCK EXCHANGES IN INDIA: At present there are 23 stock exchanges recognized under the securities Contracts (regulation). 1956. However. Those are:  Ahmadabad Stock Exchange Association Ltd.  Coimbatore Stock Exchange  Delhi Stock Exchange Association  Guwahati Stock Exchange Ltd  Hyderabad Stock Exchange Ltd.P a g e | 41 for the ‗small‘ investors.

3.  Saurashtra Kutch Stock Exchange Ltd. commerce and industry. Facilitating company growth Companies view acquisitions as an opportunity to expand product lines. resulting in stronger economic growth and higher productivity levels and firms. increase distribution Channels. hedge against volatility. or acquire other necessary business assets. this may include the following: 1. which could have been consumed. are mobilized and redirected to promote business activity with benefits for several economic sectors such as agriculture. ROLE OF STOCK EXCHANGES IN THE MARKET/ORGANIZATION:Stock exchanges have multiple roles in the economy. . increase its market share. it leads to a more rational allocation of Resources because funds.P a g e | 42  National Stock Exchange of India  OTC Exchange of India  Pune Stock Exchange Ltd. A takeover bid or a merger agreement through the stock market is one of the simplest and most common ways for a company to grow by acquisition or fusion. or kept in idle deposits with banks.  Uttar Pradesh Stock Exchange Association  Vadodara Stock Exchange Ltd. 2. Raising capital for businesses The Stock Exchange provide companies with the facility to raise capital for expansion through Selling shares to the investing public. Mobilizing savings for investment When people draw their savings and invest in shares.

Redistribution of wealth Stock exchanges do not exist to redistribute wealth. One. Creating investment opportunities for small investors As opposed to other businesses that require huge capital outlay. 5. both casual and professional stock investors. it is alleged that public companies (companies that are owned by shareholders who are members of the general public and trade shares on public exchanges) tend to have better management records than privately-held companies (those companies where shares are not publicly traded. will share in the wealth of profitable businesses.Corporate governance By having a wide and varied scope of owners. Companies like Pets. Sunbeam (2001).Tel (2001). some well-documented cases are known where it is alleged that there has been considerable slippage in corporate governance on the part of some public companies. The dot-com bubble in the early 2000s. or otherwise by a small group of investors). 7. MCI WorldCom (2002). Parmalat (2003). companies generally tend to improve on their management standards and efficiency in order to satisfy the demands of these shareholders and the more stringent rules for public corporations imposed by public stock exchanges and the government. are classical examples of corporate mismanagement. However. and the subprime mortgage crisis in 2007-08. However. Consequently.P a g e | 43 4. through dividends and stock price increases that may result in capital gains. often owned by the company founders and/or their families and 18 heirs.com (2000). and Satyam Computer Services (2009) were among the most widely scrutinized by the media. Lehman Brothers (2008). Enron Corporation (2001). Webvan (2001). investing in shares is open to . American International Group (2008). Adelphia (2002).

or financial crisis could eventually lead to a stock market crash. depending on their ability to service these obligations and assigns rating to them expressed as numeric and alphabetical symbols. share prices rise and fall depending. Government capital-raising for development projects Governments at various levels may decide to borrow money in order to finance infrastructure projects such as sewage and water treatment works or housing estates by selling another category of securities known as bonds. Credit rating and information Services of India Ltd. Share prices tend to rise or remain stable when companies and the economy in general show signs of stability and growth. The issuance of such bonds can obviate the need to directly tax the citizens in order to finance development. depression. Barometer of the economy At the stock exchange. The ratings convey the credit agency s opinion on the risk . on market forces. thus loaning money to the government. although by securing such bonds with the full faith and credit of the government instead of with collateral. 8. (CRISIL):It is first credit rating agency in the country to evaluate debt obligations of the companies. These bonds can be raised through the Stock Exchange whereby members of the public buy them. Therefore the movement of share prices and in general of the stock indexes can be an indicator of the general trend in the economy.P a g e | 44 both the large and small stock investors because a person buys the number of shares they can afford. Therefore the Stock Exchange provides the opportunity for small investors to own shares of the same companies as large investors. largely. 9. An economic recession. the result is that the government must tax the citizens or otherwise raise additional funds to make any regular coupon payments and refund the principal when the bonds mature.

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. accounting for the bulk of the trading on the Indian Stock Exchange. It is the third Credit Rated Agency in India. Stock Market:The stock Market is broadly divided into two parts primary market and a secondary market. The credit rating is however not the recommendation of the credit rating agency to the investor to buy or sell the securities.(ICRA):The ICRA has been set up with the primary objective of providing guidance to the investors/ creditor in determining the credit risk associated with a debt Instrument/ credit obligation. (CARE):Its main objective is of rating of all types of debt for the benefit to the investors. The principal exchanges are the National Stock Exchange and Bombay Stock Exchange. INVESTMENT INFORMATION AND CREDIT RATING AGENCY OF INDIA LTD. . Importance of Stock Market in India: The stock market is one of the most important sources for companies to raise money.P a g e | 45 associated with a particular debt obligation. Credit Analysis and Research LTD. The secondary market in India comprises about 23 stock exchanges recognized by the government under Securities Contract Regulation Act. New securities are issued in the primary market and outstanding securities are traded in the secondary market.

and can influence or be an indicator of social mood. in the USA stock we see more unrestrained acceptance of any firm than in similar markets.P a g e | 46 The liquidity that an exchange provides affords investors the ability to quickly and easily sell securities. meeting that they collect and deliver the shares. Financial stability is the raison d‘être of central banks. and guarantee payment to the seller of a securities. central banks tend to keep an eye on the control and behavior of the stock market and. Chinese firms with no significant value to American society to just name one segment. This eliminates the risk to an individual buyers or seller that the counterparty could default on the transaction. the stock market is often considered the primary indicators of a country‘s economics strength and development. for instance. History has shown that the price of shares and other assets is an important part of the dynamic of economies activity. An important aspect of modern markets. . In fact. Rising share prices. This is an attractive feature of investing in stocks. In this way the financial system contribution to increased prosperity. An economy where the stock market is on the rise is considered to be an up and coming economy. tend to be associated with increased business investment and vice versa. 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. on the smooth operation of financial system functions. compared to other less liquid investment such as real estates. Such as. including the stock markets. Share prices also affect the wealth of household and their consumption. is absolute discretion. For example. however. Therefore. in general. Exchanges also act as the clearinghouses for each transaction.

has been an important component of this process. as they reap large commissions from the placement. The general public‘s heightened interest in investing in the stock market. rather just short-term profits to American business man and the Chinese. . either directly or through mutual funds. In the 1970‘s. there are very few large foreign corporation listed on the Toronto Stock exchange TSX. great attention must be given to the foreign participants being allowed in. and the Chinese company which yields funds to invest in china. although. This discretion has insulated Canada to some degree to worldwide financial condition. in Sweden. insurance investment of premiums. Statistics show that in recent decades share have made up an increasingly large proportion of household‘s financial assets in many countries. e. Canada‘s largest stock exchange. there can be benefits to the market‘s citizens Conversely. In order for the stock markets to truly facilitate economy‘s growth via lower costs and better employment. Yet accrues no intrinsic value to the long-term stability of the American economy. hedge funds. Relation of the stock market to the modern financial system. etc. pension funds.P a g e | 47 This profit USA banker on Wall Street.g. mutual funds. 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. One features of this development is disintermediation. when foreign company has a presence in the new market. A portion of the funds involved in saving and financing bank lending and deposit operation. The financial system in most western countries has undergone a remarkable transformation.. 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.

permitting a higher proportion of shares to bonds.P a g e | 48 The trend towards form of saving with a higher risk has been accentuated by new rules for most funds and insurance. Stock prices fluctuated widely. the United State. the noise level in the stock market rises. such as the European Union. investors find it increasingly difficult to profit. The following deals with some of the risks of the financial sectors in general and the stock market in particular. are exchanging questionable and often misleading tips. in marked contrast to the stability of (government insured) bank deposits or bonds. individual investors.. This something that could affect not only the individual investors or households. This is certainly more important now that so many newcomers have entered the stock market. . Individual Investors. The Stock Market. At the same time.e. analysis. Japan and other developed nations. In all developed economies system. and Financial Risk: Riskier long-term saving required that an individual possess the ability to manage the associated increased risks. despite all this available information. Stock prices skyrocket with little reasons. 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. then plummet just as quickly. or have acquired other ‗risky‘ investment (such as ‗investment‘ property.) With each passing year. immersed in chat rooms and message boards. i. Similar tendencies are to be found in other industrialized countries. Television commentators. but also the economy on a large scale. Yet. real estate and collectables. and market strategies are all over taking each other to get investors ‗attention‘. financial writers.

(But note that such events are predicted to occur strictly by chance.knows as ‗hard‘ EMH. The behavior of the stock market in India: 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. to this day.6 percent—the largest-ever one-day fall in the United States. although very rarely. in the sense that prices in the aggregate tends to follow a Gaussian distribution. 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. when the Dow Jones index plummeted 22.) The ‗hard‘ efficient-market hypothesis is sorely tested by such events as the stock market crash in 1987. This is a quote from the prefaces to a published biography about the long-terms value oriented stock investors warren Buffett. having priced in all public knowledge.e.) Over-reaction may occur so that excessive optimism (euphoria) may drive prices unduly high or excessive pessimism may drive unduly low.) 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 . New theoretical an empirical arguments have since been put forward against the notion that financial markets are ‗generally‘ efficient (i.P a g e | 49 And people who have turned to investing for their children‘s education and their own retirement become frightened.. contrary to fact. since prices are already at or near equilibrium. only folly. Sometimes there appears to be no rhyme or reason to the market.also predicts that little or no trading should take place. This events demonstrated that share prices can fall dramatically even though.) (But this largely theoretic academic viewpoint.

As social animal. A period of good returns also boosts the investor‘s self-confidence. . in any of its current forms.P a g e | 50 one-day share prices movements in the United States in the post-war period seems to confirm this.) 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). However.) 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‘). For instance. and the use of certain strategies. but only that market participants not be able to systematically profits from any momentary market ‗inefficiencies‘. But the best explanation seems to be that the distribution of stock market prices is non-Gaussian (in which case EMH. Various explanation for such large and apparently non-random prices movement have been promulgated. (something like seeing familiar shapes in clouds or ink blots. some research has shown that change in estimated risks. theoretically could cause financial markets to overcorrect. just noise. such as stop-loss limit and value at Risk limits. Another phenomenon—also from psychology—that works against an objective assessment is group thinking. it is now easy to stick to an opinion that differs markedly from that of a majority of the group. and often will perceive a pattern in what is. in fact. Psychological research has demonstrated that peoples are predisposed to ‗seeing‘ patterns. would not be strictly applicable. reducing his (psychological) risk threshold. a ‗soft‘ EMH has emerged which does not required that prices remain at or near equilibrium.

since often such has been anticipated. (And later amplified the glom which descended during the 2000-2002 bear market. Inexperienced investors rarely get the assistance and support they need. and a counter reaction may occurs if the news is better (or worse) than expected. In the period running up to 1987 crash. the game becomes more like poker (herding behavior takes over). the media amplified the general euphoria. In one paper the authors draw an analogy with gambling. 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 new economy stock market.P a g e | 51 An example with which one may be familiar is the reluctance to enter a restaurant that is empty. however. Irrational behavior: Sometimes the market seems to react irrationally to economic or financial news. In normal times the market behaves like a game of roulette. 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. even if that news is likely to have no real effect on the technical value of securities itself. The stock market. But this may be more apparent than real. less than 1 percent of the analysis recommendation had been to sell (and even during the 2000-2002 bear market. prediction of a DOW average below 5000 were quite common). is quite unforgiving of amateurs. In times of market stress. The players now must give heavy weight to the psychology of other investors and how they are likely to react psychology. so that by summer of 2002. people generally prefer to have their opinion validated by those of other in the group. . the media amplified the general euphoria. the average did not above 5%) In the run up to 2000. the probabilities are known and largely independent of the investment decision of the different players.

Over the short-term. stock and other securities can be battered or buoyed by any number of fast market-changing events. this occurred on October 12. are opportunities. This causes market inefficiencies. making the stock market behavior difficult to predict. which. The Dow Jones industrial Average biggest gain in one day was 936. leaving the prices of stock determined. Emotion can drive prices up and down. the stock market may be swayed in either by press releases. and the reasons for buying and selling are generally obscure. Short selling  In short selling.P a g e | 52 Therefore. people are generally not as rational as they think. but generally only briefly. the whole notion of EMH is that these non-rational reactions to information cancel out. margin buying may be used to purchase stock with borrowed funds.42 points or 11 percent. rumors euphoria and mass panic. Leveraged strategies Stock that a traders does not actually own may be traded suing short selling. to make money. hoping for the price to all. 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. 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. However. Behaviorists argue that investors often behave ‗irrationally‘ when making investment decision thereby incorrectly pricing securities. or. momentary hysteria. in turn. . 2008. as more experienced investors (especially the hedge funds quickly rally to take advantage of even the slightest.

if you want to make a $100 investment.  In the United State.  A margin call is made if the total value of the investor‘s account cannot support the loss of the trade. making money if the price fell in the meantime or losing money if it rose.  Regulation of margin requirement (by the Federal Reserve) was implemented after the crash of 1929.  The practice of naked shorting is illegal in most (but not all) stock markets. Margin buying:  In margin buying. Before that. exiting a short position by buying back the stock is called ―covering a short position‖. 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. you need to put up$500. This investors is responsible for any shortfall following such forced sale).P a g e | 53  The trader eventually buys back the stock. Hence most markets either prevent short selling or place restriction on when and how a short sale can occur. 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. speculators typically only needed to put up a little as 10% (or even less) of . it can be a maximum of a certain percentage of those other stocks‘ value.  This strategy may also be used by unscrupulous traders to artificially lower the price of a stock.  (Upon a decline in the value of the margined securities additional funds may be requires to maintain the account‘s equity. and there is often a maintenance margin below the $500). the margin requirements have been 50% for many years (that is.

)  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). business trends. Additional. since World War II). used by John W Henry and risk control and diversification. 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. Investment strategies: One of the many thing people always want to know about the stock market is. etc. minimize taxes from too frequent trading and ride the general trend of the stock market (which. Taxation: .S. in the U. general economic conditions. has averaged nearly 10% year. two basic methods are classified as either fundamental analysis or technical analysis. 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). 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. many choose to invent via the index method. compounded annually.P a g e | 54 the total investment represented by the stocks purchased.The principle aim of this strategy is to maximize diversification. ―How do I know money investing?‖ There are many different approaches. Fundamental analysis refers to analyzing companies by their financial statements founds in SEC Filing. One examples of a technical strategy is the Trend following method.

large arrays of fiscal obligation are taxed for capital gains. Current Telephone Bill. corporate and Trust) Photocopy of PAN card  PROOF OF ADDRESS (For individual / Karta / Sole proprietor / Authorized person (s) for Partnerships. Taxes are charged by the state over the transactions. dividends and capital gains on the stock market. in particular in the stock market. ACCOUNT OPENING KIT IN NIRMAL BANG PVT LTD: MANADATORY DOCUMENT: PROOF FO IDENTITY (For individual /Karta / Sole proprietor / Authorized person (s) for Partnership. Corporate and Trust) Photocopy of any one of the following: Passport. Rent Agreement. Driving license. or that tax free stock market operations are useful to boost economic growth. and Certificate Issued by employer registered under MAPIN. Insurance Policy. Current Electric Bill. among other reasons. BANK AND DP PROOF:  Letter from client‘s banker certifying the account number and the period from which the accounts in operation as per prescribed format. it could be assumed that taxation is already incorporated into the stock prices through the different taxes companies pay to the state. Flat Maintenance Bill. these fiscal obligations may vary from jurisdiction to jurisdiction because. Voter ID Card.P a g e | 55 According to much national or state legislation. Ration Card. Bank Passbook. . However.

Copy of the values certificate in case of immovable property FOR MINORS: In additional to the abovementioned documents. ADDITIONAL DOCUMENTS FOR NON-INDIVIUALS: 1) Copy of the balance sheet for the last 2 financial years (copies of annual balance sheet to be submitted every years) 2) Copy of latest share holding pattern including list of all those holding more than 5% in the share capital of the company. PROOF OF INCOME AND ASSETS: 1. I. Income tax statement for the last 2 financial years 3. Assets liability statement 4.P a g e | 56   Copy of a pas book / bank statement containing name of the client Copy of current transaction statement / holding statement / certification by DP containing the name of DP and client. the following documents would also be required for minors. (copy of updated shareholding patterns to be submitted every year) 3) Copies of the memorandum and articles of association in case of a company / body corporate or partnership deed in case of a partnership firm . duly certified by the company secretary/ whole time Director/MD. Birth certificate of Minor. Copy of the salary of the constituent for the last month 2.

Or the price at which your order got executed may be substantially different from the last traded price or changes substantially thereafter. As a result Of volatility. . 5) Photographs of partners/whole time directors.P a g e | 57 4) Copy of the Resolution of Board of Directors‘ approving participation in equity / derivatives/ debts trading and naming authorized persons for dealing in securities. individual promoters holding 5% or more. Generally. higher the volatility of a security/contract. either directly or indirectly. BASIC RISKS INVOLVED IN TRADING ON THE STOCK EXCHANGE (EQUITY AND OTHER INSTRUMENT) Of higher volatility: Volatility refers to the dynamic changes in price that securities undergo when trading activity continues on the Stock Exchanges. 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. There may be normally greater volatility in thinly traded securities/contracts than in active securities/contracts. greater is its price swings. 7) Declaration on letterhead of firm as per prescribed format for sole proprietorship and partnership Firms. resulting in notional or real losses. your order may only be partially executed or not executed at all. in the shareholding of the company and of persons authorized to deal in securities. 6) Net worth certified by Chartered accountant.

investors are more likely to pay or receive a competitive price for securities/contracts purchased or sold. . ―stop loss orders‖ etc‖.. stock may have to be sold/purchased at a low/high prices. Lower liquidity and higher volatility may result in wider than normal spreads for loss liquid or illiquid securities/contracts. as part of a day trading strategy.g. it is assumed that more the number or order available in a market. or may be executed with relatively greater price difference or may not be executed at all. Liquidity is important because with greater liquidity. Risk-reducing orders:  Most exchanges have a facility for investors to place ―limit orders‖. and as a result.. compared to the executed price levels. so as not to have any obligation to delivery/receive a security. Risks of wider spreads: Spread refers to the difference in best buy prices and the best sell prices. your order may only be partially executed. This is turn will hamper better price formation.P a g e | 58 Generally. Buying/Selling without intention of giving and or taking delivery of a securities. The placing of such orders (e. There may be a risk of lower liquidity in some securities/contracts as compared to active securities/contracts. ―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. because in such a situation. greater is the liquidity. may also result into losses. It represents the differential between the prices of buying a securities and immediately selling it or vice versa. it is easier for investors to buy and/or sell securities/ contracts swiftly and with minimal price difference. As a result.

the execution may be at available prices of outstanding orders. the stop price. the stop loss order convert to a market/limit order and is executed at the limit order. without regard to price and that. which satisfy the order quantity. and such order gets activated if and when stock/contract reaches. and buy stop orders are entered ordinarily above the current price. there is a possibility that the order may not be executed at all. in which case. It may be understood that these prices may be significantly different from the last traded prices or the best prices in that security.  A ―limit‖ order will be executed only at the time ―limit‖ price specified for the order or a better price. Risk of Rumors: . subject to available of orders on opposite side. the risk of such order not getting executed arises. while the customer receives prices protection.P a g e | 59  A ―market‖ order will be executed promptly. When the stock reaches the pre-determined price. These announcements may occur during trading. while the customer may receive a prompt of a ―market‖ order.  A stop loss order is generally placed ―away‖ from the current price of a stock / contract. may suddenly cause an unexpected positive or negative movement in the price of the security/contracts. or trades through such price. just as with a regular limit order Risk of New Announcements: Issuers make news announcements that may impact the prices of the securities/contracts.  Sell stop order are entered ordinarily below the current price. However. or trades through. and when combined with lower liquidity and higher volatility. on price time priority.  There is no assurance therefore that the limit order will be executable since a stock/contract might penetrate the pre-determined price.

These may cause delays in order execution or confirmation. This risk reflects the nature of an option as a wasting asset which becomes worthless when it expires. it may be difficult or impossible to liquidate a position in the market at a reasonable price or at all. System Risk:  High volume trading will frequently occur at the market opening and before market close. newspapers. Such high volume may also occur at any point in the day. there may be delays in order execution and its confirmation. the investors may lose all or a significant part of his investment in the option. when there are no outstanding order either on the buy side or the sell side. on account of market participants continuously modifying their order quantity or prices or placing fresh orders. 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 should be wary of and should desist from acting on rumors. 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.  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. etc.  During periods of volatility.  Under certain market condition.P a g e | 60 Rumors about companies at times float in the market through word of mouth. websites or news agencies. Risk of Option Holders:  An option holder run the risk of losing the entire amount paid for the option in a relatively short period of time. .

INVESTOR’S RIGHTS AND OBLIGATIONS: From the trade date upto five trading days. Where trade on the websites.  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. Delivery of securities is made to the pool account of the members rather than to the beneficiary account of the members. 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.P a g e | 61  The exchange may impose exercise restrictions and have absolute authority to restrict the exercise of option at certain times in specified circumstances. . immediately get in touch with the investors grievances cell of NSE/BSE.  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. do not tally with the detail mentioned in the contract note.

you should address the complaint to the office as may be specified by NSE/BSE from time to time. relating to ―transaction executed on the trading system‖ of NSE/BSE. in the statement immediately.  In case where a member is expelled from trading membership or declared a defaulter. In case of a claim. In case of claim.  In case of a complaint against a members/registered sub-broker. ensure that you lodge a complaint immediately with the investors‘ Grievance cell of NSE/BSE. NSE/BSE gives a public notice inviting claim.  Every member is required to send a complete ‗statement of Accounts‘. relating to ―transaction executed on the trading system‖ of NSE/BSE. . NSE/BSE gives a public notice inviting claims. without delaying. ensure that you lodge a claim with NSE/BSE within the stipulated period and with the supporting documents.  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. but not later than 30 calendar days of receipt thereof. from investors. if any.P a g e | 62 Please follow-up with the concerned members for its release. for both funds and securities settlement to each of its constituents. if any. at such periodicity as may be prescribed by time to time. on pro-rata basis if the amount is inadequate. ensure that you refer such matter to the investors Grievance cell of NSE/BSE. In case the error is not rectified or there is a dispute. ensure that you lodge a claim with NSE/BSE/NSCCL clearing House within the stipulated people and with the supporting documents. In case pay-put is not released as above from the members within five working days. You should report errors.  In case where a member surrenders his membership. if any from investors. to the members.

The terms ‗constituent‘ shall mean and include a client. fees and other charges for which you will be liable. a customer or an investor. In some jurisdiction. The extent to which you may recover your money or property may be governed by specific legislation or local rules.  For right and obligation of the clients. the same shall be subject to arbitration as per the byelaws/regulation of the exchange. if any. to a maximum amount of Rs. 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. These charges will affect your net profit (if any) or increase your loss. 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. per defaulter/expelled members may be payable subject to such claims being found payable under the scheme of the IPF.P a g e | 63 The balance amount of claims. . who deals with a members for the purpose of acquiring and/or selling of securities through the mechanism provided by NSE/BSE. you should obtain a clear explanation of all commission.10 lakh per investors claim.  In case of nay dispute with the member. please refer to Annexure-1 enclosed with this document. GENERAL: Commission and Other Charges Before you begin to trade.

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 The terms ‗members‘ shall mean and include a trading members, a broken or a stock broker, who has been admitted as such by NSE/BSE and who holds a registration certificates as a stock broker from SEBI.

Capital Market Segment: 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. But some orders at the discretion of Shriram Insight Share Brokers Ltd. (SISBL) may be subject to manual review and clearances which may cause delay in processing the order or rejection of the order. The client agrees that placing an order, including a market order does not guarantee execution of the order. It is understood by the client that with respect to market order, 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. 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, liable for any losses incurred by them. 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.

P a g e | 65

However SISBL shall not be liable for failure of the system or for any loss, Damage or other costs arising in way out of: 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, or fluctuation of power, or other environmental conditions: or b) c) Act of god, fir, flood, war, act of violence, or any other similar occurrence: or Any incidental, special or consequential damages including without limitation of loss or profit.

Cancellation or Modification of Orders:
The execution or order cancellation or modification is not guaranteed. Cancellation of orders is possible only if the original remains pending at the exchanges. Unless otherwise specified by SISBL, any order not executed at the end of the day shall stand cancelled.

Sufficient Margin Maintenance for Placing Orders:
The clients have to maintain sufficient margin before placing the order. The requirement of margin will be intimated by SISBL from time to time depending on the market condition, rules framed by the concerned Exchanges or SEBI, and assessment of the client by SISBL. 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 margin would vary from 0% to 100% of the open position of the client. Open position would mean all pending orders and transaction, both purchase and sale, of the client which are either unpaid or undelivered, respectively.

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However, the client would be responsible for all of their orders including any order which exceeds the limit available based on their available margin. The client should on a regular basis enquire about the margin requirement to ensure smooth transaction. 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. If the clients does not provide the additional collateral, 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.

The client will be liable to bear any loss arising out of the same. 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. 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. Margin in the form of FD (as specified by SISB)

Payment from client against purchase of securities:

Therefore. The client shall not make any payments of SISBL through any third party account or an account of any other client SISBL. the clients are required to give the cheque sufficiently in advance so that the amount is credited in SISBL account before the due date. 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. SISBL would present the cheques in normal clearing and would not be responsible for any delay due to clearing in the banking system. 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. 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 . 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. 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.P a g e | 67 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.

. 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. 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.P a g e | 68 current settlement then the shares purchased in earlier settlements. 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. the receipt of the same may be used to meet pay-in obligation for current settlement.  Consequently client will be responsible for any resulting losses and all associated costs including penalty as specified in point 10 a. wherever is applicable.

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. 1 a. b. Inter client auction: . 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. In case the open position is either squared neither off nor converted to delivery by client within the stipulated time. 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.P a g e | 69 TERMS AND CONDITIONS: VOLUNTARY DOCUMENTS NO.

where both the purchase and sale position for any scrip are limited between two or more of our i. 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. As started above. in any settlement. SISBL‗s clients only. the party delivery short and the corresponding purchaser are both SISBL‘s clients. inter-client auction trades envisage debiting the client delivering short with the auction amount and crediting the corresponding purchaser with the equal amount. For determining the auction price. It may be noted to the above auction price.99% will be levied in pursuance to clause 10(a) of the terms and conditions. then auction day high prices and trading day high prices are compared with the highest purchaser price as mentioned in (b) above.P a g e | 70 In case. in this situation. taken from the concerned Exchange Download. 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. . c) In case WAP is not available. In such a situation if there is any short delivery then the resultant auction position will be inter client since both the legs i.00% delivery brokerage.e.e. b) Highest purchase price plus 1. no brokerage being charged for a auction trades. Hence debit/credit notes are issued for inter-client auction trades. a penalty @ 1. such that the net position to the concerned Exchanges in that settlement and for that scrip is ―NIL‖. and the highest is taken as auction price.

fees and commissions. but merely involves debiting and crediting the respective client accounts. 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. 2) A schedule of the current brokerage. Charges: BROKERAGE. applicable services and other taxes and other transaction expenses shall be provided by the Member on the Member‘s Web site. fees. 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. commission.P a g e | 71 Auction contracts notes will not be issued for inter-client auction trades because they are not trades in true sense of the term. Derivatives Segment: Additional Terms & Conditions Governing Derivatives Segment  In this segment. Margin percentage can be changed during the life of the contract depending on the volatility in the market. 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.  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 . COMMISSION AND FEES: 1) The client agrees to pay the member brokerage. and the client agrees to keep himself updated in respect thereof.

if any. discharge or fulfill any obligation or liability or commitment or nay part thereof. Any or all such incidental expenses incurred by SISBL in this regards will be reimbursed by the client.  SISBL is authorized to retain with them the MTM profit.  If the client have been are may become unable to meet. then SISBL may at any time thereafter and without giving any notice to the client can buy.00a. daily premium receivable. . as charged by NSCCL o SISBL by end of next day.P a g e | 72 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. satisfy.  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. 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.m.  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. Next day. sell or close out any part or all of the future and option contracts held in his account with SISBL.  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. 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.

 Profit & loss on end of day (EOD) MTM on open position  Service tax on Brokerage. turnover Tax and securities Transaction Tax.Any transaction entered into will attract brokerage which will be debited from the clients account at the end of the day. Futures market:  Futures‘ trading involves settlement of all positions. Market wise position limit violation) and a s a result of which any penalty is imposed on SISBL by the concerned exchange. then the same will be liable to be recovered from the client.P a g e | 73 If the client takes position in any securities that has entered the prohibited range (for MWPL violation i.  Profit & loss on squared off position.  Brokerage.   Premium payable Or receivable . If the index or the individual stock prices have moved against the client.  All future obligations are settled by the exchange on T+1 basis Options market:  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.e. Every day the open positions are marked to market based on the closing level of the index and the individual stock price. he will be required to deposit the amount of loss (national) resulting from such movements within the stipulated time periods  In the futures Market following settlement obligation are to be full filled.

encrypts and passes on the password to the client. and that SISBL is not aware of the same. The clients agree and understand to immediately change his initial password upon receipt thereof. 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 underlying will have to be bought in case of PUT and sold in case of call. the contract may be assigned to him i. . Additional Conditions In Relation To Electronic Orders at Nirmal Bang 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 Site.  The assignment process in initiated and completely decided by the exchanges on a random basis.com 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. d) The client shall lo off from the Nirmal Bang. c) The clients is aware that SISBL‘s system itself randomly generates the Initial password. However since options are currently cash settled. The client is aware that subsequent passwords also are not know or available to SISBL.com services at any time the client is not accessing or using the Nirmal bang. turn over tax and securities Transaction Tax.  For options contracts in case a client has a sell position.e.the money. b) The client will be entitled to a User Name.P a g e | 74    Profit on exercise Loss on assignment Service tax on Brokerage. Hence it is not necessary that the assignment will take place even if the position is in. the client would have to pay or receive the money.

due to technical or other factors. h) 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. SISBL‘s system shall generate a new password for the client which shall be communicated to the client. an order which has been received by SISBL may not be immediately confirmed to the client. However. f) 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. . The client shall not be entitled to presume that any order transmitted by the client has been received by SISBL until SISBL ha confirmed receipt of such order. g) At no point in time shall SISBL be liable for any loss. and passwords whether or not such persons was authorized to do so. RISK DISCLOSUE DOCUMENT & TERMS AND CONDITIONS THE FURTHER CLAUSES FOR INERNET TRADING ARE AS FOLLOWS Important Keys Used for online trading at Nirmal Bang F1 . 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.P a g e | 75 e) 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. whether national or actual.For placing order for buying the shares. INTERNET TRADING AGREEMENT IN ADDITION TO THE STOCK BROKER AND CLIENT AGREEMENT.

F10 Full message display. F12 Supplementary menu. Words and expressions defined in Basic’s in our websites Nirmal Bang. Ctrl F3 Index. unless repugnant to the context or meaning thereof. F7 Market by order (active log). Alt F7 Online Back-up. The principal of interpretation set out in Basic’s shall apply to his agreement.P a g e | 76 F2 For placing order for selling the shares. THE PARTIES HERE TO AGREE AS UNDER: a) DEFINATION & INTERPRETATION OF NIRMAL BANG: In this agreement. AGREEMENT TO PROVIDE AND AVAIL OF THE MEMBER’S SERVICES: .com shall have the meaning assigned thereto in Basis’s and ii. F11 Market inquiry. F9 Snap quotes. F4 Scrip update. Alt F6 Net position. i. F8 Previous trades. F3 Outstanding order. F6 Market by 1st five buys.

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A. on and subject to the terms and conditions of this Agreement, the exchange provision, 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: i. ii. The members agrees to provide the Member‘s Services to the Client, and The client agrees to avail of the Member‘s Services. B. Based on the Account Application submitted by the client, the members may open a client account in the name of the client. This agreement shall become effective only upon the members opening such client Account. The client is aware and agrees that the mere execution and/or acceptance of his Agreement by the Members opening such client account.

C. 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, unless otherwise disclosed by the members to the client. D. 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. Or to complete or settle any transaction entered into through or with the members or executed by the members on behalf of the client. However, nothing herein shall oblige the members to take such steps. E. Now with standing anything stated elsewhere in this agreement, the members may at any time in its sole discretion, 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, without any prior notice and without assigning any reasons what‘s ever. F. The members and the client shall be bounded by the provision of the exchange on which the concerned transaction is affected.

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USER NAME AND PASSWORD FOR NIRMAL BANG CLIENTS
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, 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. 3.2 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, 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 The client is also aware that he has the option of not availing such facility/services. However, being fully aware of all risks, 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, responsible and liability. 3.4 The client shall ensure that he is the only authorize user of the username, password. The member shall be entitled to presume that any order or instructions entered or communicated using the client‘s username. Password is the client‘s own order or instruction that of the client‘s duly authorized representative. The client will be fully responsible and liable for, and will pay or reimburse to the members as a consequences of access and /or use of the expenses incurred by the member‘s system or services by any third party using the client‘s account, member‘s system or services by any third party using the client‘s username, password.

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3.5 Without prejudice to the provisions of the aforesaid clause, the client shall immediately notify the member in writing with full details if: a) b) c) d) e) He discovered or suspects unauthorized access through his username, password. He notices discrepancies that might be attributable to unauthorized access. He forgets his password. He discovers a security flaw in the member‘s system, or He does not, on the same day as the receipt or execution of an order by the member; receive a message from the members indicating that the order has been received or, executed; f) He does not receive a confirmation of an execution; or receives confirmation of an order and /or execution which he did not place; or receives inaccurate information in client‘s account balances, securities positions or transaction history.  In any of the above events specified in clause.

 The client shall immediately change his password. However, 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. Or for any other reason than the client shall immediately request the members in writing to discontinue his old 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. At no profit in time shall the members be liable for any loss, whether notional or actual, 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.

2 ORDERS ROUTING AN EXECUTION: The client shall transmit his order to the members only in the following manner: I. the members may in its sole discretion: Required the client. . instruction and other communication given or made over the telephone may be recorded by the member. VOLUNATRY DOCUMENTS NO.P a g e | 80  The client agrees that orders. instruction and communications given or made by the client or the member by electronic mail. Over telephone a) i. The client also agrees that such recording and the member‘s recorders of any orders. Through the internet over the member‘s website: III. fax or other electronic means shall be admissible as evidence and shall be final and binding evidence of the same. with the members. As a prediction for execution of a purchase order. transaction charges. Require the amount of margin prescribed by the members to be available in the client‘s margin account if nay.The manner (if any) as the members may permit (including through branches that the members may specify for this purpose) II. service tax.  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. an available funds balance in the client‘s account with the member for the full value of the order plus any Brokerage. associated costs and such mark-up as the members any determine: and/or ii. at the time of order placement by the client.

with the members. f) The client shall be allowed to trade only during Trading hours. the members may in its sole discretion: Require the client. c) 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. However. As a prediction for execution of a sale order. all orders for purchase. at the time of order placement by the client to maintain an available stock balance in the member‘s own depository account. if. Require the amount of cash margin prescribed by the members to be available in the client‘s margin account. and vice versa. an order which has been received by the members may not be immediately confirmed to the client. e) 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. and also maintain funds required for margin. and/or ii. any.P a g e | 81 b) i. determined by the members in the client‘s account with the members. 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. if any. d) Unless the members otherwise determines. 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. due to technical or other factors. 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. . g) 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.

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. limits as to the number. and the members may not inform the client of the same. etc. c. imposition.P a g e | 82 a. 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. value and/or kind of securities in respect of which orders can be placed. In particular.). 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 the client agrees that if any instruction or orders or any details therefore are not absolutely clear and unambiguous. 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. 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. restriction or prohibition. The client agrees to ensure that all orders and instructions which the member receives from the client are absolutely clear and unambiguous. The members may choose not to intimate the client of the limits and any variation thereof. the member. b. turnover limits. the members may refuse to accept or execute the whole or a part of any order or instruction:- . the companies in respect of whose securities orders can be placed.

d. REPRESENTED AND WARRANTIES OF THE CLIENT: . confirmation or contracts note of executed trades (including execution prices. the members shall have the right to accept or reject the client‘s objection. In all causes. 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. The clients shall be responsible for obtained and complying with all applicable legal and regulation approval in respects of the client‘s order‘s. CONFIRMATIONS: The client shall bring any errors or other discrepancy in any report. scrip‘s or quantities) to the member‘s notice in writing. Within 24 hours from the time of receipt of the first notice. account. The members may in its discretion at any time allow or disallow margin trading by the client. II. Based on the member‘s risk perception: or In respect of which the client requires regulatory approval. even if the Client has sought and obtained the required regulation approvals. Accordingly. via electronic mail or fax. cancelled. e. the members may forward to the client late reports in respect of such transaction that were previously unreported to him.P a g e | 83 I. or executed. There may be a delay in the members receiving the reports of transaction status from the Exchanges. instructions and transactions at the default in research thereof. Or were incorrectly reported to him as being expired.

if the client acts on the same. he shall do so at his own risk and cost. 1. 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. incomplete or out-dated data ro information and.  OTHER DATA: 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. Neither the members nor the Exchanges nor such suppliers shall be liable in any way for incorrect. or any messages disseminated by it. sequence. The client understands that the Exchanges. such suppliers and the members do not guarantee the timeliness. whatever such approval is required. accuracy or completeness of the data or nay other information. misleading. The client shall abide by the exchange provisions and the terms of the member‘s Website in force from time to time. the member‘s system has been approved by the Exchanges. REPRESENTATIVE AND WARRANTIES OF THE MEMBERS: The member represents and warrants to the client that. directly.P a g e | 84 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.

REIMBURSEMENT:  The member does not warrant that the service will be uninterrupted or error free. loss of opportunity or damages that result from interruption. either express or implied. costs. special Or consequential damages including. those of uninterrupted availability.P a g e | 85  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. including negligence. merchantability or fitness for a particular purpose. indirect. 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. including. The member‘s service is provided without warranties of any kind.  The client agrees to reimburse to the members any and all claims. 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. trading losses. incidental. . The client will not delete copyright or other intellectual property rights notices from any such materials. liability. but not limited to lost profit. 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. materials which are made available by the member‘s services for the client‘s own need only. without limitation. at the client‘s risk. shall the member‘s services or system be liable for any direct.  The client is authorized to use.  The client agrees that under no circumstances.

P a g e | 86  Certain securities any grant the holder thereof valuable rights that may expire unless the holder takes action. Or take any other action on the Client‘s behalf. but not limited to. which the client holds including. or (ii) Delayed. interrupted or improper transmission or delivery of nay data. or omission from. information. except as required by law and applicable Exchanges provision. stock splits. the e-mail or facsimile number (if any). any data.  The members shall not be liable for any error or delay in. information or message. To the member at name of the person concerned: HEAD OFFICE:- . then the members shall not be responsible for any losses the client may incur by reason thereof. NOTICES: 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). or message on the members on the member‘s Websites. the client sells more securities than he actually owns or different securities from what he actually owns. of that party set opposite its name below. 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. or nay loss or damage arising from or occasioned by the above. If. The client shall also be responsible for knowing about organizations related to securities. due to a reorganization or book keeping or data entry error.

Khatau building. fax number or e-mail address stated in the schedule). facsimile number or email address as the party to be served may have notified the other in accordance with the provision of this clause.com Contact at: 022-30272323 www. maintenance calls and other similar matters by the members to the client may be communicated orally. Notwithstanding anything stated above.nirmalbang. intermediaries. 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 at such other address. Don‘t fall prey to promise of guaranteed returns. 4) Investors are advised not to indulge in any market manipulation of price of any scrip through their trading activity.com To the client: (at the address. communication relating to orders. 2nd floor. 5) Don‘t leave the custody of your delivery instruction slip (DIS) book in the hands of nay intermediary/broker.P a g e | 87 38-B/39. 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. Mumbai. . Alkesh Dinesh Moby Marg fort. SMS ‗BANG‘ TO 54646 E-MAIL: free@nirmalbang. margin.

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.P a g e | 88 6) Don‘t get carried away with onslaught of advertisement about the financial performance of companies in print and/or electronic media. 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. inform your DP. Don‘t blindly imitate investment decisions of others who may have profited from their investment decisions. In case of any unauthorized transaction. PLEASE DO’S . will not held responsible for nay financial loss arising from violation of the said instruction. 9) Don‘t share any sort of trading related password with anybody else. 14) Nirmal Bang securities PVT Ltd.. 12) Don‘t participate in any synchronization Trade. 16) POA is not compulsory for execution of PAY-IN. 15) Avoid off-market transaction of securities especially to third party. 7) 8) Don‘t blindly follow media reports on corporate developments. 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 fill-up your KYC. as they could be misleading. 10) Don‘t overwrite.

regardless of what market experts tell you. 8) Always insist on duly signed contracts notes from your brokers. 2) Always deal with the market intermediaries registered with the securities and Exchanges Board of India (SEBI)/stock exchanges. 4) Before signing please read and understand all the point of KYC‘S 5) Always update your correspondent address. margin call. Therefore. Know the rules regulation. . what level and amount to investment are you comfortable with.bseindia. take some time to evaluate your risk-bearing capacity.nseindia. since all the transaction will be deemed to be done by you only.com 9) Check all the related information like trade details. investors and requested to carefully read and understand the contents stated in the risk Discloser document. electronic contract note. Further. byelaws and circulars issued by stock exchanges/SEBI before investing in this market. bank account details. 3) Please carry out due diligence before registering as client with any intermediary. http://www. etc in your email ID as discloser by you in KYC. hence do not share your login ID & password with anybody. 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.com. 6) Give clear and unambiguous instruction to your broker/agent/depository participants 7) You will be sole responsible for your internet password. verify the genuineness of the same on the exchanges website: http://www.P a g e | 89 1) Know your risk: it is critical to understand where you stand and where you want to be. In case of doubt of the transactions.

spelling of the scrip/scrip on delivery instruction slip (DIS) correctly. In case of any shortfall or inadequate margin in your account. 18) Please note that DI slip is like a cheque book keeps it under safe custody. Nirmal Bang security PVT Ltd. 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. 11) Always collect money receipt from the broker after every payment. 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. 16) Please be informed that there are no guaranteed returns on investment in stock markets. . before the prescribed pay-in day. 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. 12) Always settle the through the normal banking channels with the market intermediaries. 15) Be cautious about stocks. overwriting. would have the discretion to square off the position of the client. 21) Joint holder of demat account should sign jointly on delivery instruction slip (DIS). quantity.. which show a sudden spurt in price or trading activity. cancellation on the instruction slip made should be countered signed by you. 17) You should read and understand the utility of power of attorney (POA) for meeting the pay-in before signing the same.P a g e | 90 10) Always pay your margin call in Future & option segment and maintain required margin in cash segment. 13) Settle your dues on any payment to the brokers would be from your declared bank account only. 19) Any correction. especially low price stocks.

copy of PAN card of all account holders is to be submitted to the DP along with original PAN card.cdslindia.com for details. Contacts your DP or visit CDSL‘s websites: www.com 29) Registered for CDSL‘s internet based facility ―easl‖ to monitor your demat account yourself. on completion of the necessary procedures. Enhance customer through relationship managers. If any unauthorized debit is noticed. complaints@cdslindia. Extensive product range. 26) In case of sale of shares. What company offers to our customers? 1. 28) Registered for CDSL‘S SMART (SMS Alerts related to Transactions) facility. for verification. 3. Personalized attention. 27) In order to receive all the credit coming to your demat account automatically. An email may be sent CDSL at. the BOND should immediately in for CDSL and the Main DP in writing. Wide range of services under one roof. (0522-3060071-079) What a customer expect from the company: 1.com phone no. .P a g e | 91 24) To open and operate your demat account. 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. 2. 2. standing instruction to your DP. you can give onetime. 24 hours and ease to access. 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. 30) If you have any quarries or have any confusion please contacts our helpdesk helpdesk@nrimalbang.

4. Continually invest and quality of systems. Expanding geographical and online presence. mutual fund and equity distribution. Offer innovation products such as power Nirmal Bang signature client account. Provide a wide array of services such as brokerage. 8. 7. 5. . Improve customer education through in-house equality research.P a g e | 92 3. Improve interface and customer experiences through research. 11. depositary services. Enhance data mining to improve risk management processes. 10. commodities trading and customer‘s loans. 9. 6. Improve customer‘s interface and customer experience through technology. Improved speed and quality of services 12. Understand local market dynamic.

Reliance Money 9. to a specific audience. India Infoline 8. .com OBJECTIVE OF THE PROJECT Reports communicate information which has been compiled as a result of research and analysis of data and of issues . Good reports are documents that are accurate. objective and complete. Kotak Securities 5. They should also be wellwritten. 5 paisa. Angel Broking 10. Reports can cover a wide range of topics. ICICI Direct 6. The true value of the research may be assessed through a report since the written report may be the "only tangible product of hundreds of hours of work. Motilal Oswal 3.P a g e | 93 COMPETITORS OF NIRMAL BANG 1. but usually focus on transmitting information with a clear purpose. clearly structured and expressed in a way that holds the reader's attention and meets their expectations. India Bulls 2. Anand Rathi 7. Religare 4.

results. organization and content" (Blake & Bly.P a g e | 94 Rightly or wrongly. 1993: 119).  To understand & analyze the marketing strategies and analyze online Trading of NIRMAL BANG. Analysis of need and satisfaction of distribution of financial services. conclusion and/or recommendations. The inclusion of recommendations is one reason why reports are a common form of writing in industry. as the informed recommendations are useful for decision making. summary of the contents.    To know the basic terminology of stock market. discussion.its clarity. To get the knowledge of other markets such as commodity market and derivatives.  Explore the recent developments in the Mutual Funds in India.  To execute business for the company by selling demat accounts and mutual funds. To forecast or predict the future trend of stock market which helps in investment.  To discuss about the market trends of Mutual Funds investment. . Often reports are structured in a way that reflects the information finding process and the writing up of the findings: that is. To give an idea about the regulations of Mutual Funds. methods. the quality and worth of that work are judged by the quality of the written report .  To give a brief idea about the benefits available from Mutual Funds investment and idea of types of schemes available. introduction or background.  To improve the format of daily sales report (DSR)  To get the Demat account opened of potential customers in favor of Nirmal Bang.  To study some of the mutual funds schemes and analyze them observe the funds management process of mutual funds.

 To have a practical experience of working in a reputed organization. when we talk about defining the scope.  To learn the online terminal used for trading. you can calculate cost and time. or how much it will cost. For example we want a 4-cylinder front wheel drive with seating for 2 adults and 2 children.  To know how to handle various types of customers.P a g e | 95  To study the various products of the company. we would first define the scope.  To know the various policies of the company. SCOPE OF PROJECT When people talk about scope. we are talking about developing a common understanding as to what is included in. Determining scope is a different exercise. In the context of this white paper. Maybe you also want it to be a red convertible. they immediately think time and cost. How much you will have to spend and how long . If we were looking for a car. That comes after the scope is defined.  To know how to open and close the calls.  To gain practical knowledge of the market.  To learn to manage time. Having defined the scope. a project. and less than 2 years old. We are not talking about deciding how long it will take. or excluded from.  To know various reasons for market fluctuations. Time and cost are outputs of scope.

etc      Derivatives Sebi Stock exchange Commodity market Stock market Securities Day trading Factor affecting Indian stock market Effect on Indian economy     . Anyone who has ever done a project will have tales of how scope changes caused grief. they are qualitative and/or focus on general statements. The scope changes that usually cause problems are those where the perception of what was in and out of scope was different between various parties. and the business assumed ten to twenty. Often.P a g e | 96 you will take to buy it. Scope definitions often account for a paragraph or two in a Business Case or Project Charter. The Project Manager assumed there would only be four or five reports. If you get the scope wrong. As the detail becomes clearer. Scope is bound to change. etc. more complications creep in. Nobody felt it was worth talking about because they assumed the other person thought the same way they did. "We will improve service by providing an information system to respond to customer inquiries. and this is to be expected. These are not foreseeable at the start and hopefully we build in a contingency for what we cannot see. the time and cost will be wrong." Is it a real time system? Is it all screen-based? What reports can be produced? Where does the information come from? What manipulation is required for the data? Is all the data compatible? Do you want to generate standard letters? How many letters? How customizable are the letters? Do you want to store the questions? Do you want to store the answers? Etc.

or users poor communication of objectives and targets across the team unofficial scope creep poor/ lack of measures or information on project performance unclear responsibilities across the project (can be catastrophic on its own) lack of / poor quality planning / resource planning .P a g e | 97 PART-2 RESEARCH PROBLEM         unclear goals and objectives lack of alignment to project goals across stakeholders non-participative sponsors and stakeholders.

manages and implements the data collection process analyzes and communicates the finding and their implications. Research objectives:  To understand and analyze the market strategies of Nirmal Bang.  To understand and analyze online trading at Nirmal Bang.P a g e | 98    poor supplier integration / management lack of commitment or team working lack of ownership (relates to many areas) RESEACRH METHODOLOGY The research specifies the information required to address needed issues. designs the methods for collecting information. The research methodology implemented in this research repot primarily consists of personal interviews with those very investors in Lucknow city who invest through the stock market companies in Lucknow cities. .

 To give an idea of the types of schemes available. Proposed Analysis Technique: graphs and charts DESCRIPTIVE OF RESEARCH METHODOLOGY Research Design: Descriptive Research Design.P a g e | 99  To improve the format of DSR (Daily Sales Report). Sampling size: 100 Research Instrument: In this research we have used telephonic and face to face conversation for getting the result.  Explore the recent development in the mutual in India. . Data Collection Instrument: questionnaire and personal interview.  To give a brief idea about the benefits available from Mutual Funds investment.  To discuss about the market trends of Mutual Funds investment. Analysis of need and specialization of distribution of financial services.  To study some of the mutual fund schemes and analyze them observe the fund management process of mutual funds. Data Collection: primary and secondary.  To give an idea about the regulation of Mutual Funds. Research Design: Descriptive Research Design.  To get the Demat account opened of potential customers in favor of Shriram insight.

P a g e | 100 Descriptive research includes surveys and fact-finding enquires of different kinds. The major purpose of descriptive research is description of the state of affairs as it exists at present. Since the name. I have to move around the city and asked the people that whether they invests in the life insurances companies or not. Data Collection: primary and Secondary Primary Data was collected with the help of interviews conducted to the general public. addresses and contract number of the customers were not available in the internet. This is one of the most effective and popular techniques used in surveys. . 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. Data Collection Instrument: Questionnaire and personal interview. If they invest then I asked them further questions related to my research work mention in the questionnaire. I asked them about their share trading firms and tried to know that whether they are satisfied with it or not. to those only in Lucknow city who invest in stock market by the help of a share trading firm. The questionnaire can also reveal that which share trading Companies in Lucknow city is more popular and which fir is not popular among the investors in the Lucknow city. A structured questionnaire was constructed containing all perceptions about the different share traing Companies can be made quite easily. Questionnaire: questionnaire is formal set of questions prepared to collect the required information. therefore an attempt was made to know all these details from the Life Insurance itself.

P a g e | 101 DATA INTERPRETATION AND ANALYSIS 1. You are interested in share trading? Parameter Yes No Response 60 40 .

P a g e | 102
70 60 50 40 yes 30 20 10 0 yes No no

Interpretation:
The data shows that most people interested in investment in share trading.

2. Mode of trading would you prefer?
Parameter Online offline Response 40 60

P a g e | 103
70

60

50

40 online 30 offline

20

10

0 Online Offline

Interpretation:
The data shows that mostly customers prefer offline trading.

3. Type of product do you invest in?
Parameter Commodity Equity Currency Mutual fund Response 30 40 20 10

P a g e | 104

45

40

35

30

25

Commodity Equity

20

Currency Mutual Fund

15

10

5

0 currency Equity Commodity Mutual Fund

Interpretation:
The data shows that mostly customers invested in equity..

4. Which broking firm would you prefer?
Parameter Share khan Nirmal bang Angel broking Religare Response 40 30 15 15

5. How did you come to know about the broking firm? Parameter News paper Advertising Friend Internet Response 10 30 50 10 .P a g e | 105 45 40 35 30 25 20 15 10 5 0 share Khan Nirmal Bnag Angel Broking Religare Share Khan Nirmal Bang Angel Broking Religare Interpretation: The data shows that mostly customers prefer share khan broking firm for share trading.

Do you have a De-Mat A/C? Parameter Yes No Response 60 40 .P a g e | 106 60 50 40 news paper 30 Advertising Friend Internet 20 10 0 News Paper Advertising Friend Internet Interpretation: The data shows that mostly customers know about broking firm through friends. 6.

P a g e | 107 70 60 50 40 yes 30 no 20 10 0 yes No Interpretation: The data shows that mostly customers have an demat account. Have you or any of your family members ever invested in stock market? Parameter Yes No Response 70 30 . 7.

What is your age? Parameter 20 20-30 34-40 40 Response 5 35 50 25 . 8.P a g e | 108 80 70 60 50 40 yes no 30 20 10 0 yes No Interpretation: The data shows that mostly customers prefer offline trading.

P a g e | 109 60 50 40 20 30 20-30 34-40 40 20 10 0 Age 20 Age 20-30 Age 30-40 Age 40 Interpretation: The data shows that mostly customers are trade in the age between 34 to 40. 9. Occupation Parameter Service Man Business Man House wife Retired Response 25 65 5 10 .

00.00.000 Response 15 35 50 . 10.000 1. Income Parameter 50.0001.000 Above.00.00.5.000 5.P a g e | 110 70 60 50 40 Service man Business man House wife 30 retired 20 10 0 service man Business man House wife Retired Interpretation: The data shows that mostly trade is done by businessman.

000.000 Above 5.000 to 5.00.00.000 Interpretation: The data shows that mostly customers are trade whose income above 5.P a g e | 111 60 50 40 50.000 to 1.000 to 5.00.00.000 to 1. 11. 00. Do you have risk management? Parameter Yes No Response 70 30 .000 1.000 30 1.000 Above 5.00.000 20 10 0 50.00.00.00.

P a g e | 112 80 70 60 50 yes no 30 40 20 10 0 yes No Interpretation: The data shows that most brokers possess the risk management system. Client base Parameter Delivery Non-delivery Commodity Response 60 30 10 . Number of client. 12.

Ratio between online and offline trading? Parameter Offline Online Response 80 20 .P a g e | 113 70 60 50 40 30 20 10 0 Delivery Non-delivery commodity Delivery Non-delivery Commodity Interpretation: As the above data the most investors prefers to invest in delivery (same day transaction) 13.

P a g e | 114 90 80 70 60 50 offline 40 30 20 10 0 offline online online Interpretation: According to the above data approx 20% investors have knowledge about the online trading and they invest through online. What are the daily volumes in delivery? Parameter Less 25% 40% 50% More than 60% Response 15 25 35 10 . 14.

What are the daily volumes in non-delivery? Parameter Less than 20% Approx 40% Approx 50% More than 60% Response 40 35 25 30 .P a g e | 115 40 35 30 25 less than 20% 20 approx 40% approx 50% 15 more than 60% 10 5 0 less than 20% approx 40% approx 50% more than 60% Interpretation: The above data shows that approx 50% investors prefers to invest in delivery 15.

The study of limited to the different schemes available under the mutual funds selected. Limitation of the study:    The time constraint was one of the major problems. The study is limited to selected mutual fund schemes. The lack of information sources for the analysis part.P a g e | 116 45 40 35 30 25 20 15 10 5 0 less than 20% approx 40% approx 50% more than 60% less than 20% approx 40% approx 50% more than 60% Interpretation: The data shows that the more than 60% investors prefers to invest in the non delivery.  .

 For nay primary data. Peoples do not have sufficient knowledge to distinguish between advantages and disadvantages between companies own branches and franchisee. they just filled it quickly and run away. It is very difficult to suggest anything for greater and diversified area. in such way it is almost impossible to get the real opinion of people.P a g e | 117   I have gathered an information and data from secondary source like internet. 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.  Some times peoples never read the questioner seriously. Now based on the opinion of such a sample size. I filled questioner from 30 people‘s to suggest proper expansion model for Nirmal Bang in ester region. Most of distributors felt dissatisfaction with their brokers but some of the disappointing areas are- .

They come to cities (like in Lucknow) for various works.P a g e | 118 More exposure: Most of distributors want some more exposure for them clients from their share broking companies.many potential investors are also trust in rural areas. . 6. Brokerage problem: Some companies have huge brokerage chares which create differences of market share of different companies and also dissatisfaction among distributors.There are many misconceptions in the mind of common people that Mutual funds. 4. Recommendation for the concerned company: 1.The new and different offers should be communicated to the large value of potential inventors so that the offers can hit the target. online share trading etc. Full information. There should some special offers to attract them in share trading. by giving example of active investors various misconceptions should be removed. 3. are only for ‗big ones‘ & they can‘t enter in this field and if they will enter they will suffer losses so. Target rural areas also. Misconceptions. Simple procedure-many potential investors are computer illiterate so they never try their hand free. 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.The companies should reveal all the information regarding any scheme so that investors can feel free to invest. 5. 2.

According to the data that have been collected all the people who were surveyed are aware of share market and trading. News paper and Internet are the most preferred mode for awareness of the broking firms and share trading. Some offers for women should be introduced to get a new share of market. .  The terminal through which the brokers buy and sell shares is a software that completely depends on the internet. 12.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.  Stock broking companies run with the help of IT. 8. Friends. People like to invest more in equity rather than other investment sectors. The best preferred broking firm among the people is ICICI direct with 22% rather than other broking firms.P a g e | 119 7. Employees should be trained. 11. 9. 10. Survey shows that the nearly 79% people prefer the online trading rather than that of offline trading through broker. LEARNING:  Importance of information technology in the field of stock broking is immense.

how to convince them and guide them in trading.  In Nirmal bang I have learned how to maintain good relations with the customers by giving them the proper service and solving their queries regarding the share market.  Learned the various policies of the company.  Learned how to use online trading terminal. I have learned a lot relating to the finance.  Customer Relationship is very necessary for the company to retain the customers.  Learned how to interact with people.  Learned to manage time properly.  Learned various aspects regarding Share Market. .  Learned about various products of the Nirmal Bang Limited.  Learned how to approach the customers.  I have also learned how to maintain good relation with the employees and the cotrainees.  Enhanced my communication and convincing skills.  In Nirmal Bang Ltd.  Learned about various products used in the share market especially Demat accounts.  Learned how to open and close the calls. As soon as the prices of the shares goes up or comes down then they can be sold or purchased instantly within seconds.P a g e | 120  Buying and selling through internet is fast.  Learned how to take appointments.

. Buying and selling of shares through the internet is so easy. Conclusion Through this research we can conclude that:   Importance of information technology in the field of stock broking is immense. I maintained all my daily records in the Excel sheet.P a g e | 121  Learned the importance of the Excel sheet.

Also the unique software of ―trade tiger‖ is allowed free of charge for life time. Mostly the people have opening the account from Sharekhan ltd and angel broking ltd.      Stock market fluctuates by the external environment. mutual fund. Stock market is very sensitive market. Especially the software of Sharekhan ―trade tiger‖ is unique from others. In it 59% people are doing trading in equity and others are in commodity. But now in days numbers of customers are increasing for online trading. In Sharekhan the current scheme is that opening the de-mate account is free of charge and there is no other charge on it for a year. may survive in the market and generates Profits or good return whether the market is down  Investors should not invest on the basis of rumors they must observe the market Condition or trends Indian economy and than invest If they wanna generate good return. mostly people are doing off-line trading. Stock market is all about future prediction. It is based on ―high risk and high return.  Products and services of the Sharekhan are good from others.   After listening the current scheme 47% people are ready to opening the account.P a g e | 122  As soon as prices of share s goes up and comes down then the customer can sell or purchase the share instantly within seconds.‖ Comparatively stock market is less risky than the other market and generates more money for the economy  One who have good knowledge in stock market. Because of time limitation and also internet available problems. .     There are 57% people are doing trading in stock market.

.com  www.P a g e | 123 Bibliography:  www.nirmalbang.com.capitalmarket.

sebi.com www.P a g e | 124                 www.businessstandard.org www.com www.net www.nseindia.skicapital.org www.galatime.com www.com www.com www.google.com www.bseindia.yahoofinance.indiaseekingalpha.com www.icicidirect.yahoofinance.com ANNEXURE QUESTIONNAIRE: NAME: ………………………………………………………… DESIGNATION: ……………………………………………… .com www.com www.moneycontrol.com www.com www.wikipedia.com www.sitebysite.yeahindia.webindia.

P a g e | 125 AGE: …………………………………………………………… GENDER: ………….. Which mode of trading would you prefer? a) Online b) Offline 3. a) Do you have a De-Mat A/C? YES . MALE FEMALE 1. Are you interested in share trading? a) Yes b) No 2.. If you trade in future.. a) b) c) d) How did you come to know about the broking firm? Newspaper TV Advertisement Friends Internet 6. Which type of product do you invest in? a) Mutual fund Equity Commodity Currency b) c) d) 4. which broking firm would you prefer? a) b) c) d) Share khan Nirmal Bang Angel broking Religare 5.

000 11. a) b) Do you have risk management? Yes No 12.P a g e | 126 b) NO 7. a) b) c) d) What is your age? Age less than 20 Age between 20-30 Age between 30-40 Age more than 40 9.00.000 More than 5. a) b) c) Income 50.00.000 to 1.00. a) b) c) Occupation Service Business Housewife Retired d) 10. Client base Delivery . a) b) Have you or any of your family members ever invested in stock market? Yes No 8.00. a) Number of client.000 to 5.000 1.

Ratio between online and offline trading? a) 80 b) 20 14.P a g e | 127 b) c) b) non-delivery c) commodity 13. What are the daily volumes in non-delivery? Less than 25% 40% 50% More than 60% THANKS FOR THE SUPPORT . What are the daily volumes in delivery? Less than 25% 40% 50% More than 60% 15.