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ARBITRAGING AS A BUSINESS PLAN

AND INVESTMENT MANAGEMENT AS
A CAREER
AFTERSCHO☻OL
– DEVELOPING CHANGE MAKERS
CENTRE FOR SOCIAL ENTREPRENEURSHIP
PGPSE PROGRAMME –
World’ Most Comprehensive programme in social
entrepreneurship & spiritual entrepreneurship
OPEN FOR ALL FREE FOR ALL

www.afterschoool.tk AFTERSCHO☺OL's
AFTERSCHO☺OL's MATERIAL
MATERIAL 1
FOR PGPSE PARTICIPANTS
ARBITRAGING AS A BUSINESS
PLAN AND INVESTMENT
MANAGEMENT AS A CAREER
Dr. T.K. Jain.

AFTERSCHO☺OL
Centre for social entrepreneurship
Bikaner M: 9414430763
tkjainbkn@yahoo.co.in
www.afterschool.tk, www.afterschoool.tk

www.afterschoool.tk AFTERSCHO☺OL's
AFTERSCHO☺OL's MATERIAL
MATERIAL 2
FOR PGPSE PARTICIPANTS
WHAT IS ARBITRAGING?

• Buy in one market and sell in another market
• No-risk business – as you are able to trade
between two markets simultaneously.
• For example: gold in one market is selling at
12000 and in another at 12050, you can buy at
12000 in one and simultaneously sell at 12050
for huge quantity – till the gap reduces.

www.afterschoool.tk AFTERSCHO☺OL's MATERIAL 3
FOR PGPSE PARTICIPANTS
WHY IS IT THE MOST PROMISING
BUSINESS?
• Internet
• You can trade on two markets
simultaneously due to IT.
• There are always differences between the
prices in two markets.

www.afterschoool.tk AFTERSCHO☺OL's MATERIAL 4
FOR PGPSE PARTICIPANTS
ARBITRAGE IN INDIAN CONTEXT…

• IDBI Bank for example is 103 in one market and
104 in another market. The difference is Re. 1.
there is brokerage that is to be paid. Across the
two market the brokerage is .25 paise. Thus net
profit is .75 paise per share. If you deal in 10000
shares, your profit is Rs. 7500 in one deal. Later,
if you are able to cross this transaction, then
your brokerage will come down to .05 paise
(cross transaction in the same market). Your
total profit in two deals will be : .95*20000 =
19000. which is a reasonable profit in less time.
(where is the investment?)

www.afterschoool.tk AFTERSCHO☺OL's MATERIAL 5
FOR PGPSE PARTICIPANTS
How to do arbitraging business?

• Hire young people, who are very fast, cool, quick
and accurate.
• Train them in arbitraging business.
• Give them 60% profit straight away+ special
bonus on extraordinary performance.
• Ask them to bear loss on their own
• Make sure that they don’t keep any transaction
pending (there must be simultaneous buy and
sell).
www.afterschoool.tk AFTERSCHO☺OL's MATERIAL 6
FOR PGPSE PARTICIPANTS
Profitability….

• Suppose you hire 100 persons for this task as
arbitragers.
• Suppose a person does 40 transactions in a day
averaging profit of Rs. 500 per transaction (we
are taking modest figures).
• Total profit = 40*500*100*.4
• = 8 lakhs. Per day.
• You may deduct your administrative and other
expenses from this. (taking 50% as other
expenses) Thus you can expect to earn Rs. 4
lakhs per day.

www.afterschoool.tk AFTERSCHO☺OL's MATERIAL 7
FOR PGPSE PARTICIPANTS
What is your investment?

• Brokership in BSE / NSE (2*4000000)
• Terminals fees (200 * 5000)
• Investment in computers (200*50000)
• Investment in VSAT etc. (150000)
• Furniture AC etc. (100 * 50000)
• Working Capital (100,00,000)
• Total : 3,41,50,000

www.afterschoool.tk AFTERSCHO☺OL's MATERIAL 8
FOR PGPSE PARTICIPANTS
Return on investment ?

• 350 days * 4 Lakhs.
• = 14,00,00,000
• Thus you are able to recover your
investment in your first year itself. You are
able to distribute this amount among all
the partners.

www.afterschoool.tk AFTERSCHO☺OL's MATERIAL 9
FOR PGPSE PARTICIPANTS
Your business plan….

• Raise public issue
• Involve 50 share brokers / dealers (who
deal in large scale) in your business as
partners.
• Initial expenditure : Rs. 1 Crores (in
preparing ground work).
• Once operational, this busines plan will
help you in achieving your goals of
becoming a great entrepreneur.
www.afterschoool.tk AFTERSCHO☺OL's MATERIAL 10
FOR PGPSE PARTICIPANTS
Queries….

• For any query, come to AFTERSCHOOOL
and we will solve your problems.

• Be a great entrepreneurs
• Give people a chance to earn and grow
rich.

www.afterschoool.tk AFTERSCHO☺OL's MATERIAL 11
FOR PGPSE PARTICIPANTS
Objectives of the law…

• One of the oldest legislation of social
security in India.
• a workman who dies or suffers
disablement (partial or total) due to
accident is entitled to get compensation.

www.afterschoool.tk AFTERSCHO☺OL's MATERIAL 12
FOR PGPSE PARTICIPANTS
About AFTERSCHO☺OL

• PGPSE - World’s most comprehensive
programme on social entrepreneurship –
after class 12th
• Flexible – fast changing to meet the
requirements
• Admission open throughout the year
• Complete support from beginning to the
end – from idea generation to making the
project viable.
www.afterschoool.tk AFTERSCHO☺OL's MATERIAL 13
FOR PGPSE PARTICIPANTS
Branches of AFTERSCHO☺OL

• PGPSE programme is open all over the
world as free online programme.
• Those who complete PSPSE have the
freedom to start branches of
AFTERSCHO☺OL
• A few branches have already started -
one such branch is at KOTA (Rajasthan).

www.afterschoool.tk AFTERSCHO☺OL's MATERIAL 14
FOR PGPSE PARTICIPANTS
Workshop on social entrepreneurship

• We conduct workshop on social
entrepreneurship – all over India and out
of India also - in school, college, club,
association or any such place - just send
us a call and we will come to conduct the
workshop on social entrepreeurship.
• These workshops are great moments of
learning, sharing, and commitments.

www.afterschoool.tk AFTERSCHO☺OL's MATERIAL 15
FOR PGPSE PARTICIPANTS
FREE ONLINE PROGRAMME

• AFTERSCHO☺OL is absolutely free
programme available online – any person can
join it. The programme has four components :
• 1. case studies – writing and analysing – using
latest tools of management
• 2. articles / reports writing & presentation of
them in conferences / seminars
• 3. Study material / books / ebooks / audio / audio
visual material to support the study
• 4. business plan preparation and presentations
of those plans in conferences / seminars

www.afterschoool.tk AFTERSCHO☺OL's MATERIAL 16
FOR PGPSE PARTICIPANTS
100% placement / entrepreneurship

• AFTERSCHO☺OL has the record of
100% placement / entrepreneurship till
date
• Be assured of a bright career – if you join
AFTERSCHO☺OL

www.afterschoool.tk AFTERSCHO☺OL's MATERIAL 17
FOR PGPSE PARTICIPANTS
Pursue professional courses along with
PGPSE

• AFTERSCHO☺OL permits you to pursue
distance education based professional /
vocational courses and gives you support
for that also. Many students are doing CA
/ CS/ ICWA / CMA / FRM / CFP / CFA and
other courses along with PGPSE.
• Come and join AFTERSCHO☺OL

www.afterschoool.tk AFTERSCHO☺OL's MATERIAL 18
FOR PGPSE PARTICIPANTS