A Brief Study of Equity Products at Indiabulls Securities Ltd.

& Comparative Study of Equity Market In Jaipur
Submitted By

Third Semester-MBA(CAM)


First and foremost I would like to express my sincere gratitude to Mr.Rajat Sharma, Senior Vice President, Indiabulls Securities Ltd. Jaipur Branch for providing me an opportunity to work in this organization as a project trainee. I am grateful to corporate guide Mr.anil sharma, Branch Manager, who has been an inspiration for me, who has shown me the light of corporate world, who has guided me eloquently during my project work and who has been my mentor through out my project. I would also like to express my sincere thanks to the following people without whom the project would not have been possibleMs. Jyoti saraswat (HR Manager), Ms.Savita pareek (Regional operation manager), Mr. Rahul jain, Mr.Mukesh bhorodia and all the other staff members, relatives and friends. Finally I would like to thank the institute for giving me to learn and add to my knowledge and to gain some experience through this summer training project.




1) Introduction Indian Stock Market - An Overview - Depository - Indian Online Share Trading - Sensex and Nifty - Margin Trading 2) About the Organization Company Profile Equity Products & Services

3) Research Methodology 4) Analysis and Findings 5) Limitations of the study 6) Suggestions 10) Concluding note 11) Bibliography 12) Glossary



Indian Stock Market Overview
The Bombay Stock Exchange (BSE) and the National Stock Exchange of India Ltd (NSE) are the two primary exchanges in India. In India, in addition, there are 22 Regional Stock Exchange. However, the BSE and NSE have established themselves as the two leading exchanges and account for about 80 percent of the equity volume traded in India. The average daily turnover at the exchanges has increased from Rs 851 crore in 1997-98 to Rs 1,284 crore in 1998-99 and further to Rs 2,273 crore in 1999-2000 (April-August 1999). NSE has around 1500 shares listed with a total market capitalization of around Rs9, 21,500 crore (Rs 9215-bln). The BSE has over 6000 stocks listed and has a market capitalization of around Rs 9,68,000 crore (Rs 9680-bln). Both exchanges have a different settlement cycle, which allows investors to shift their positions on the bourses. The primary index of BSE is BSE Sensex comprising 30 stocks. NSE has the S&P NSE50 Index (Nifty), which consist of fifty stocks. Both the exchanges have switched over from the open outcry trading system to a fully automated computerized mode of trading known as BOLT (BSE on Line Trading) and NEAT (National Exchange Automated Trading) System. It facilitates more efficient processing, automatic order matching, faster execution of trades and transparency. The scrips traded on the BSE have been classified into ‘A’, ‘B1’, ‘B2’, ‘C’, ‘F’, and ‘Z’ groups. The ‘A’ group shares represent those, which are in the carry forward system (Badla). The ‘F’ group represents the debt market(fixed income securities) segments. The ‘Z’ group scrips are the blacklisted companies. The ‘C’ group covers the odd lot securities in ‘A’, ‘B1’ & ‘B2’ groups and right renunciations. The key regulator governing Stock Exchanges, Brokers, Depositories, Depository participants, Mutual Funds, FII and other participants in Indian secondary and primary market is the Securities and Exchange Board of India (SEBI) Ltd. Working of the stock Market A person desirous of buying/selling shares in the market has to first place his order with a broker. When the buy order of the shares is communicated to the broker he routes the order through his system to the exchange. The order stays in the queue exchange’s systems and gets executed when the order logs on to the system within buy limit that has been specified. The shares purchased will be sent to the purchase by the broker either in physical or demat format.

Depository participant: the market intermediaries through whom the depository services can be availed by the investors are called a Depository Participant (DP). trades in rolling settlement are settled on a T+2 basis i. The issuer may be a brand-new company or one that has been in business for many.e. each trading day is considered as a trading period and trades executed during the day are settled based on the net obligations for the day. Tuesday’s trades settled on Thursday and so on. Organized stages are physical market place where the agent of buyers and sellers operate through the auction process. 6 . Primary Markets Securities available for the first time are offered through the primary securities markets. Typically trades taking place on the Monday are settled on the Wednesday. Broker act as an agent while dealer as a principal in a transaction. In other words. At NSE and BSE. on the 2nd working day. There are actually two broad segments of the secondary markets the organized exchanges and the over-the-customer (OTC) market. An investor wishing to utilize the services offered by a depository has to open an account with the depository through a depository participant. many years.Rolling Settlement Cycle In a rolling settlement. The securities offered may be a new type for the issuer or additional amounts of a security used frequently in past. The key is that these securities absorb new funds for the coffers of the issuer. In India there are two such organizations viz. they change hands in the secondary markets. NSDL and CDSL.The depository concept is similar to the banking system with the expectation that bank handle funds whereas a depository handles securities of the investors. a depository can therefore be conceived of as a “Bank” for securities. Depository The organization responsible to maintain investor’s securities in the electronic from is called the depository. The primary middlemen in the secondary market are brokers and dealers. like that of MARUTI. Secondary Markets Once investors have purchased new issues.

User IDs and Passwords i.  Not just online but real time-from placing an order to having it executed-in a few seconds. Each individual has access to the latest information and tools to analyse any stock investment decision.  Continuous feedback of all transactions orders and their status. Kotakstreet. now that they have the convenience of buying and selling shares on the NSE online and in real time. 7 .com. IndiaBulls. Full service online Full service online brokerage is linked to existing brokerages. Plus the power to execute the sale or purchase right before them on their personal computer screen. data encryption using Secure Socket Layer (SSI) technology.com. Advantages of online trading:  The convenience of desktop investment-trade from anywhere at any time. Investors can have complete control of their stock investing actions. Tatatdw.  Three level securities via Firewalls. they allow you to buy and sell shares via Internet. Sharekhan. Some provide quality research.com. HDFCsec.e your personal information remains for your eyes only. 5Paisa.com. ICICIDirect. There are 2 types of online trading service: Discount brokers Discount online brokers allow you to trade via Internet at reduced rates.com. other don’t. Geojit securities.com. These brokers allow their clients to place online orders with the option of talking/ chatting to brokers if advice is needed. brokers have taken their trading rooms to the Internet known as online brokers.com.Indian online share trading Realizing there is untapped market of investors who want to be able to execute their own trades when it suits them.com are some of the online broking sites in India.

 Online access to a wealth of live information that can facilitate better investment decisions. A stock index is created to provide investors with information regarding the average share price in the stock market. • Secondly. • Finally. There are however many differences in their construction and behaviour. Sensex and Nifty Sensex and Nifty are the two important indices that track the Indian equity market. The systematic risk of one’s portfolio can also be measured by comparing it to the index. that is to say that they are not moving together. In the Indian market. indices are useful in modern financial applications of derivatives. 8 . sectoral index serves as a lead indicator of the performance of that particular sector. It is sometimes seen that these indices move with a low correlation to each other. stock market indices are lead indicators of the performance of the overall economy. Investors must choose one between the two to benchmark their portfolios. Perhaps. both Sensex and Nifty are underlying for Futures and Options contracts. An index is used to give information about the price movements of products in the financial. Commodities or any other market. The ups and down in the index represents the movement of the equity market. Indices serve as the underlying for Future & Options products. Generally the stock price of any company is vulnerable to three types of news:  Company specific  Industry specific  Economy specific Functions of an index: The main objective is to give all market participants an indicator of the general movement of the stock. • The primary function of a stock index is to serve as a barometer of the equity market. Similarly. the most important use of an equity market index is as a benchmark for a portfolio of stocks. Investors can have a clear picture on equity market.

the broker has the discretion of liquidating the client’s holdings and thus recovering the loan advanced. If the value of the shares goes down. This is called buying shares on a 50% margin. If the margin falls below 30%. The margin loan can be up to 50% of the total amount invested. It serves as an avenue for the investor who wants to buy more shares than the cash available.  You may be forced to sell some or all your securities when falling stock prices reduce the value of your securities Benefits of Margin Trading: I. II. It can be very effective tool in the hands of the experienced and heavy trades. and investor has to pay the difference between current margin and maintenance margin to take it to 40%. who can invest up to double his investible sum in the hope to earn high profits. This effectively means that you can invest in shares worth Rs 100 by borrowing Rs 50 from your broker. The “margin” here is the money actually borrowed from the broker. the investor has to pay a “maintenance margin” to bring the margin up to 40% of the market value of the shares. The investor leverages the transaction and aim to make more money on the investment than the interest payable on the margin loan. 9 . III. This margin is paid when the broker makes a “margin call” to the investor. Here the investor borrows money from his/her broker to invest in stocks through the same broker. Risks in Margin Trading:  You can lose more money that you have invested  You may have to deposit additional cash or securities in your account on short notice to cover market losses.Margin Trading Margin Trading is nothing but borrowing money to invest in stocks.

IV. Improves liquidity in the market. 10 . they can assume higher risk and can invest in higher value of stocks. With lesser amounts of cash with investors.

About the Organization 11 .

Debt markets and Derivatives. IIT – Delhi graduates. Each individual has access to the latest information and tools to analyze Indiabulls has diverse and growing revenue streams: Brokerage services for Cash equities.com investors can have complete control of their stock investing actions. Saurabh Mittal and Sameer Gehlaut. Indiabulls collaborates with all associated fields that are doing very best. detailed data and news. and electronic trading capabilities. It was founded in mid 1999 by: Rajiv Rattan. now that they have the convenience of buying and selling shares on the NSE online and in real time. Indiabulls has developed a sophisticated real-time risk management system to monitor and manage this portfolio to earn attractive spreads with minimal risk New business areas such as insurance brokerage & investment management 12 .INDIABULLS SECURITES LTD. Margin lending business. intelligent analytics. Indiabulls is highly profitable and rapidly growing business and is managed by a highly motivated. right at your fingertips. With indiabulls. Indiabulls is India's leading retail financial services company with 135 locations spread across 65 cities. Indiabulls offers a full range of financial services and products ranging from Equities to Insurance to enhance your wealth and hence achieve your financial goals. Indiabulls Professional Network offers real-time prices. qualified and talented team. Indiabulls is one of the very few who conform to the stringent norms of the National Stock Exchange and hence are approved to provide online and real time trading experience. Indiabulls is lead by a highly regarded management team that has invested cores of rupees into a world class Infrastructure that provides the clients with real-time service & 24/7 accesses to all information and products.

Power Indiabulls provides users with an extremely powerful fully integrated Market Watch functionality. Users can open multiple 13 . Power Indiabulls POWER INDIABULLS is an extremely sophisticated trading application that brings a dealer's trading terminal right on to your desktop.Financial Services and Products Indiabulls offers a full range of financial services and products ranging from Equities to Insurance to enhance your wealth and hence achieve your financial goals Equity  Online IPO Indiabulls Equity Products Normal Indiabulls Power Indiabulls Equity Analysis Normal Indiabulls Web Based Connection A connection is made through the website and get the script of 20 companies. Indiabulls is dedicated to empower Active Traders through Personal service and advanced trading technology. The trading is done through the site of Indiabulls Securities limited.

Any number of Scrips/FNO on the screen at one time Also Categorizes MW on the basis .Any other category Multiple Intraday Charts with Technical Analysis 14 • • • • • • . “All On One Screen” Computer Terminal needs to be 128 bit Encrypted (supported by Internet Explorer Version 5 and above) • Live Streaming Quotes • Fast Order Entry • Tic by Tic Live Charts • Live News and Alerts • Extensive Reports for Real-time Accounting Replica of NEAT Terminal Creates Multiple Market Watches/Portfolios Cash and FNO on the same screen Unlimited number of scrips covered .Unlimited scrips covered in one market watch . execute trades and get confirmations of the same. One of the most distinctive features of Power Indiabulls is extremely fast and convenient order entry. These screens can be given user-defined names and can have any number of scrips added to them.Business Groups .grid based Market Watch screens. Power Indiabulls presents the user with a highly powerful charting package.Industry . User can open charts for any number of scrips using the right-click menu. Features of Power Indiabulls: •Offers great deal of versatility even at low bandwidths ensuring speed and total functionality of a broker’s terminal •An Active trader can seek information about the cash and derivatives market.

• Multiple Order books 15 .

Normal Indiabulls: 16 .

Power Indiabulls: 17 .

18 . mid cap.Equity Analysis  Indiabulls Equity Analysis provides premium research on 400+ companies updated daily. current stock price. ratings along with the 3rd party opinions. pharmaceutical. stock price. IT. 2.Core competence .Services and products offered . 1. asset class (large cap.Assessed on parameters like net profit margin and ROE (Return on Equity).Client profile . small cap) and 52-week high-low. etc). Company background /details: INDIABULLS EQUITY ANALYSIS provides the user with a basic company background that includes: . Equity Ratings: Ratings are based on a set of parameters. 3.  Includes third party opinions to facilitate more informed investing decisions. asset class. which are as follows:  Fundamentals . PARAMETERS Provides its clients in short and precise the company’s background.Overview: Contains precise information about the industry (cement.  Indiabulls Equity Analysis provides clients with an objective stock rating system for more than 400+ stocks  An unbiased approach to help in deciding which shares to buy and sell.Achievements and its relative position (market share) in the Industry.

liquidity of the stock. This includes the following: • Third party opinions • Only for companies researched by some analysts • Parameters include Buy. Hold. Valuation .Assesses the attractiveness of a particular stock.  Momentum .  Risk . debt/equity ratio. Peer analysis 19 . -Market capital: Number of shares * market price -Price/sales: Stock's current price / revenue per share -Profit margin (%): This parameter is an indicator of profitability. Higher the current value of the company. -Dividend Yield: This parameter indicates the income generated by a share.Assesses the potential of the stock to keep performing at a stronger than market level in the future.Assessed on parameters like price volatility. which are used to generate ratings for each company (scrip wise). and No opinion. Weak/Hold. -Beta: A measure of volatility for systematic risk of a security compared to the market. 5. lower is its future attractiveness. which is calculated as: Net earnings after taxes/revenues -ROE (%) Return on Equity: This is useful in comparing the profitability of a company to other firms in the same industry and this calculated as: Net income/shareholder’s equity -Long Term Debt/Equity: A measure of financial leverage indicating the proportion of equity and debt used by the company to finance its assets. The more the number of buy/buy-hold recommendation the better the momentum rating for the company 4. Buy/Hold. Sell. Current consensus opinion: Perspective from the viewpoint of the Analyst. 6. Fundamental information: Under this parameter the company’s share is compared with the industry and market which is based on the following parameters: -Revenue: Income generated from sales of the product. etc.

Indiabulls Depository Services is part of our value added services for our clients that create multiple interfaces with the client and provide for a solution that takes care of all your needs. We offer depository services to create a seamless transaction platform – execute trades through Indiabulls Securities and settle these transactions through the Indiabulls Depository Services. They provide a reservoir of information about saving. investment and borrowing options for investors facilitating decisions related to varied needs. Indiabulls performs clearing services for all securities transactions through its accounts. Personal loan: Home loan: 20 .7. Personal Finance: Indiabulls believe there’s lot more to money than stocks. Growth expectations & valuation measures Depository Services Indiabulls is a depository participant with the National Securities Depository Limited (NSDL) and Central Depository Services (India) Limited (CDSL) for trading and settlement of dematerialized shares.


 To find the advantages of the Demat account  To study the trading procedure of Indiabulls Securities  To find the cost saving analysis on the brokerage charges by the Indiabulls Securities on the share and derivative trading with the other broking firms. 22 .  To increase the market of Indiabulls Securities Ltd. Demat account.  To study the equity products and services of Indiabulls Securities Ltd. and Derivative market. in Jaipur city.Objectives of the study: Objective of this study is to find out Indiabulls Securities services for. Equity market. The Project is sub-divided into the following objectives:  To find the competition of equity market especially in NSE trading and comparison of the broking firms.

com. Sharekhan. Population  ALL INVESTORS DEALING IN SHARE MARKET (PRIMARY\SECONDARY) OR DERIVATIVES  ALL BROKING FIRMS (NATIONAL PLAYERS AND LOCAL BROKERS ) Information Source: Investors from Various firms. religare. UTI Securities. ICICIDirect. Motilal Oswal.. Eureka Securities. Anandrathi. 5Paisa.Jain & Co.C. anagram securities.angel broking. Telecalling references generated from respondents interviewed.Emkay securities.reliance money. Hem Securities. Sample size BROKERS AND SUB BROKERS IN JAIPUR Share brokers and sub-brokers (including on-line line & off-line brokers): Kotakstreet.com.RESEARCH METHODOLOGY Research: Exploratory research Universe  ALL TYPES OF INVESTORS AND BROKERS Investor is a person who invests money to earn profit or interest on the investment. lending in the form of loans or investing in equities. unicorn securities. H. Brokers & Subbrokers in Jaipur. Relationship managers.com(India infoline). 23 . Alankit Assignments. Internet. it can be in the form of deposits.

24 .com other books and websites Jaipur City Area under Study Statistical Analysis Data analysis is done with the help of bar charts. Indiabulls. pie charts. telecalling Journals. tables and certain mathematical tools are also applied to derive the results.Sampling Sampling method Data Type Data Collection Techniques and Tools Stratified sampling technique used Primary Data and Secondary Data Personal Interview.

02% of Share Value NIL NIL NIL • No bad delivery of shares. 1. • No requirement of stamp duty on transfer of shares.05% of Transaction Value 0. • No loss of share certificate in postal transit. • Less brokerage payable to broker when trading in Demat shares.25% 0. • Minimum handling of paper.FINDING AND ANALYSIS Objective of this study is to find out Indiabulls Securities services for Equity market.75% NIL NIL NIL NIL 0.25-0.Physical Vs Demat Of Shares TYPE OF ACCOUNT Brokerage Stamp Duty on transfer Postal Transfer Deeds Follow Ups Settlement Changes Custody Changes Bad Delivery Loss/Theft/Mutilation Non Receipt Of Bonus/right Shares PHYSICAL 0. 25 .5% of value in case of physical) • Shares are transferred in the name of purchaser within a day of completion of settlement as against 45-60 days in physical mode. Another aspect of this study is to explain various technical aspects related to investment to investors and to have an overview of competing On-line share trading firms’ strategy. • No courier\postal charges incurred in transferring them or changing your address etc.75-1. • No scope for theft\forgery damage of share certificates. Derivative market clients. • Much faster payment on sale of shares. (This is 0.Comparison of Cost.5% of MV Actual INR 0.35/TD Actual NIL (Vault Cost) Not Quantifiable Actual Actual DEMAT 0.

26 .750 (initially) Rs 190 to Rs.10(negotiable) 0. Account once opened is active for the whole life.  Charging no AMC is a special feature of Indiabulls Securities Ltd.2. Account holder needs not renew his account every year.02% 0.  User can open charts for any number of scrips.  Competitors are providing website based software whereas Power Indiabulls is Java based. that is why it is faster than that of others. Parameters 1 2 3 4 5 6 7 8 9 10 11 12 Facilities A/c Opening charges Annual Maintenance charges Brokerage-Intraday Delivery Min Charges Margin-Intraday Margin on Delivery Automised margin lending facility Equity analysis Technical charts Transparency Competitors offer Indiabulls Offer Only offline or online or both Rs 0 to Rs.Corporate Offer Sno. 500 0.15% to 0.75% to 0.20% Rs 10 to Rs 25 Generally 6 to 10 times Most of the competitors do not provide Do not have Do not have Do not provide Not so transparent Both offline and online Rs 900(lifetime) Nil 0.50(negotiable) 1 Paisa 8 times 4 times Provided Equity Analysis of 400+ companies updated daily Provided on trade terminal Everything provided online  Online trading through Power Indiabulls is extremely fast and convenient.

PA Rs. 670 Nil Nil Rs. 200 Nil Nil Rs. 300/. 30/. 50 Rs.  Local Brokers’ charges are the lowest among these. 240/. 200 Rs. 500 Rs.3. 425 Rs.PA Rs. 360 Nil Rs.PA Charges for Trading Account Nil Rs. 500/. 190/. 50 Nil Rs. 100 Nil Account Maintenance (AMC) Rs. 40  Demat charges per year taken by the entire depository participants are almost similar.250/. Comparison of different Depository Participants SNO.PA NIL Rs. ANAGRAM INDIAINFOLINE ALANKIT ASSIGNMENT MOTILAL OSWAL ANANDRATHI FORTIS HEM SECURITIES EUREKA SECURITIES Demat Charges initial Rs.PA Rs. 330/.PA Rs. 265/. 300 (AMC) Rs.PA Rs. 27 .  Many depository participants are opening accounts in free but they are charging annual maintenance (AMC). 270 Rs.COM IL&FS UTI SECURITIES KOTAK SECURITIES SHAREKHAN INDIABULLS SECURITIES LTD. 260/-PA Nil Rs. 750 Rs. 250/. 750 Rs. Name Of DP 1 2 3 4 5 6 7 8 9 10 11 12 13 14 ICICI DIRECT. 350 Rs. 375 Rs.PA Rs. 250/-PA Rs.400 Nil Nil Rs. Many of them are free.PA Rs.Per Month Rs. 500 Rs. 300/.

 A very few are not charging account maintenance (AMC) viz.08-0.06% 0.com is not negotiable (according to slab-rate).Comparison of brokerage charges by different Depository Participants SNO.03-0. Name Of DP Brokerage Charges on Delivery 0.02% 0.25% 0.10-0. But brokerage charged by icicidirect.75-0.30-0.20% 0.05-0.3% 0.30-0.04% 0.25% 0.10-0.04%  Brokerage charges of almost all the broking firms are negotiable according to the potential of the customer.  In Alankit and Fortis brokerage is negotiable up to any level.30-0. 4.25% 0.20% 0. ANAGRAM INDIAINFOLINE ALANKIT ASSIGNMENT MOTILAL OSWAL ANANDRATHI FORTIS HEM SECURITIES EUREKA SECURITIES Brokerage Charges on Intraday settlement 0.  Indiabulls Securities Ltd.05-0.25-0.20% 0.25% 0. Indiabulls and Motilal Oswal.03% 0.03% 0.05-0.30% 1 2 3 4 5 6 7 8 9 10 11 12 13 14 ICICI DIRECT.30% 0 .40-0.03% 0.08% 0.30% 0.25-0.50-0.03% 0.COM IL&FS UTI SECURITIES KOTAK SECURITIES SHAREKHAN INDIABULLS SECURITIES LTD.50-0.65-0.20% 0.07-0.20% 0.08% 0. is encouraging the investors to trade more by charging less brokerage as compared to other competitors.35-0.10% 0.75% 0.075% 0.08% 0.40-0.03% 0.  ICICI Web Trade is first mover with the smart deal of Demat + Bank Account + On-Line Trading Account 28 .

Name Of DP 1 2 3 4 5 6 7 8 9 10 11 12 13 14 ICICI DIRECT. 5000. 29 . The local brokers and the sub brokers are charging the least brokerage as compared to the national players.  In UTI Securities it is Rs. 5.  And in Indiabulls Securities it is Rs. ANAGRAM INDIAINFOLINE ALANKIT ASSIGNMENT MOTILAL OSWAL ANANDRATHI FORTIS HEM SECURITIES EUREKA SECURITIES Margin on Delivery Nil Nil 4t 4t Depends on volume 4t Nil 4t Nil Nil Negotiable 4t – 5t Nil Depends on volume Margin on Intraday settlement 4t – 20t Depends on volume 10t 6t Depends on volume 8t – 15t 5t 6t – 10t 10t 5t 4t 8t 10t 10t  Hem Securities requires Rs. 10000 and in Indiainfoline it is Rs.COM IL&FS UTI SECURITIES KOTAK SECURITIES SHAREKHAN INDIABULLS SECURITIES LTD. 25000 minimum. One cannot trade through Hem Securities without having Rs. 25000 as a minimum balance in trading account.Comparison of margin limits given by different Depository Participants SNO. 500.

30 . Most of the broking firms do not provide margin on delivery. which is very risky. on the other hand some are allowing their customer to trade up to any limit.

com Tea traders others 19% 11% 16% 31 .Respondents interested in share trading (in %) 13% Interested Not interested Already trading 59% 28% 28% of the respondents were already trading in shares with other broking firms. Interested respondents Transporters Jewelers 14% 19% 8% 13% Property dealers Doctors Clients of icicidirect. 45% of the tea traders were either trading with other brokers (mostly with local brokers) or they were interested in online share trading. Doctors also showed interested in online share trading .

com charges the highest brokerage and also doesn’t have good CRM. All its products and services are better enough to attract investors and traders.  32 . The other competitors did not seem to pose a threat and were small players at least in Jaipur market.  Overall Indiabulls is providing better deal in Jaipur.  All depository participants’ charges vary from 1 to 3 percent of share value and from Rs 25 to 35 per request.  Majority of the investors of this region would like to invest between 25000-50000 at one shot. hoarding. etc. because through this only an investor can trade more quickly. It has undertaken massive promotional measures like setting up of canopies.  Indiabulls is charging less brokerage than other share trading firms. banners.  Dematerlisation of shares became the necessity for the investors.ICICIdirect.  Indiabulls is providing better facilities for investors (both in Offline and Online)  Indiabulls is providing better margin on Intraday and Delivery trading.

Limitations:  Findings cannot be generalized to all over India.  view of the equity market scenario.  for them.  Although every care has been taken to make sure that the research is accurate to the highest degree of significance but still a slight possibility of errors cannot be ruled out. The result is just an instantaneous included in the report because more of research works 33 .  The research undertaken is strictly Several suggestions could not be are required with in the time frame of 01/07/2007 to 25/09/2007.  The findings of the research are directly in accordance with above mentioned time period and are directly proportional to market conditions.

 Tapping the high income groups Company should focus on High-income groups and Level to be maintained. because competitors are providing lesser brokerage both Intraday and Delivery trading which satisfies customer who are investing and trading frequently. Even this one of the major factor that has to be taken care of. They can better profit to the company and can increase the turnover of the company. 34 .Suggestions  Brokerage rate on trading have to be reduced.

There are no hidden costs charged from investors till today. hence has captured a major share in Jaipur market (35%) through aggressive marketing. Indiabulls is in Jaipur for past 8 years. The Turnover of the company is high and acted as one of the largest retail financing company and the company is providing convenience of buying and selling shares on NSE online. It has also undertaken promotional measures to lure the clients. India bulls have negotiable brokerage system even in on-line share trading. Its Jaipur Branch has a strong team of Marketing & Relationships Executives. It is also providing “Pool” account through which per transaction cost can also be saved.Conclusion Over all Indiabulls is providing better deal to investors in Jaipur city. 35 .

icicidirect.indiainfoline.com www.indiabulls.com www.net 10) www.in www.com 2) 3) 4) 5) 6) 7) www.com 36 .sebi.com www.gov.nseindia.yahoofinancials.kotakstreet.com www.Bibliography 1) www.hindubonline.

Depth market. investors engaged in providing long-term capital (whether equity capital or debt capital) to the Industrial Sector. Certain special items like tea & coffee are traded in auctions with inspection facilities for the goods.refers to the number of participants in the market ready to transact at a given price to ensure sufficient liquidity. Capital Market-includes primary market. rubber.Listed. but infrequently traded. banks.Persistent selling pressure by bears.are intermediaries who compete for the right to help people buy or sell something of value on his client’s behalf. Automated Screen Trading. Beta Shares. and executes the deal. Bears. during which no transfer of shares is registered. matches. etc. but hope to buy them at a lower price when the market has fallen. Blank Sales. it closes its register of members for a certain period.Right to buy at fixed price. bringing the prices down.Sale of securities by BEARS who do not possess the securities at the moment of selling. from one week to a month. 37 . Commodities Market-Market for trading bulk & basic goods like grain. cotton. hoping to make a profit from price fluctuations. Bulls-Those who buy shares in anticipation of increase in price.GLOSSARY\TERMINOLOGY Arbitrage. Call Option. edible oils. Bear Hammering. securities market term lending institutions. Day Trading-Buying and selling the same share during a single day. metals.Electronic trading in stocks through Visual Display Units (VDU).Profiting from differences in price of the same share traded on two or more stock exchanges. The associated computer enters. Book Closure-Before a company declares a dividend or issues bonus or rights shares. It makes possible a floorless exchange and brings transparency to deals. shares of companies with a generally low equity capital. Brokers.Those who sell shares anticipating a fall in prices.

or any other asset. not-yet-listed shares rebought and sold. Futures-Shares or commodities bought or sold for delivery at a future date. or freight at a stated price and a stated time in the future. Grey Market. It is a part of their government mandate. Stolen shares. hoping to profit from sharp price movements & keeps no over-night position. currency.is a product whose value is derived from the value of underlying asset. In-and-Out Trader-One who buys and sells the same share in the course of the trading day. forex commodity. the right to buy or sell. Exercise-To put into effect.Initial Public Offering. index etc. Financial Market. IPO.Ownership of tangible assets are bought & sold in Equity Market. New shares offered to public in the Primary Market. Forward Dealing/Trading-Contracts to buy or sell specific quantities of goods.provide the channel for allocation of savings to investment & provide a variety of assets to savers as well as various forms in which the investors can raise funds.Financial Institution FII-Financial Institutional Investor Floor Broker-A person who actually does the buying & selling of shares on behalf of a member of the stock exchange for a small share of the commission charged by a broker. FI. Ex-Dividend Date-A publicly announced date on or after which a buyer will not be entitled to the dividend declared on a share. Holding the Market-Market intervention by public corporations like the UTI or LIC with large buy orders of shares to stabilize a falling market.means a security created & issued by the Central Government or State Government for the purpose of raising a public loan.Derivatives. Forward contracts are bought & sold in the FUTURES MARKET. 2.1. Government Securities. The underlying assets can be equity. Equity Market. These can be sold at a profit before delivery if prices in the market have changed.Unofficial premium market in which new. Shares in great demand. 38 . Hot Shares. The share price is usually shade lower on the ex-dividend date.

The total market value. Lot-A fixed number in which shares are bought & sold. which is the mark up. Member Code. which automatically becomes a market order when the price is reached. Mark Up.When a broker is selling from his own account to a customer.Each Company specifies the minimum number of securities. Low-The lowest price paid for a share in the last twelve months. Market Lot. Meltdown. Maturity-Day on which option is exercised. Mark Down.Jobbers. One who specializes in specific securities catering to the needs of other brokers.The difference in prices at which a Jobber will buy and sell.Broker’s broker. Margin.The phenomenon of fast.Order to the stockbroker to buy or sell a share at the best available price.A brokerage firm. Market Price. uncontrolled fall in share prices. Liquid Market.The day’s closing prices that are taken into account while preparing share price movements charts. he charges the best Ask Price and adds a commission. Margin requirements can be met with a deposit in cash or shares. MIT.A unique code given to each member of the stock exchange to enable the clearinghouse to check his payment or delivery position.One where the size of an order creates minimal affects on the transactions price. 39 .Market If Touched. which has at least one membership on a major stock exchange. which will allow the client to buy shares with money borrowed from the broker. Market Capitalization. which is the mark down. which makes an even or market lot.The last reported price of a share at which it was sold on the stock exchange.When a broker is buying shares on his own account from a customer he takes the best Bid Price and deducts a commission. Margin Account-An account with a brokerage firm. A limit order. Market at Rest. at the current stock exchange list price. Member Firm. Also called a Haircut. Market Order. of the total number of equity shares issued by a company.

A share’s high and low during a day does not overlap the prices on the previous.A professional who manages other peoples’ or institution’s investment portfolios with the objectives of profitability.The price at which a share was last bought and sold on the stock exchange.Selecting shares randomly. Portfolio. Portfolio Manager. take fright and start selling.1. Quotation. bought when its price was relatively low. Panic Selling.A market where shares which are not listed on the stock exchange are traded. Price paid for buying an Option. Profit Booking. Premium.Selling a call option on shares the writer does not own.A market dominated by only buyers or sellers.shares. Naked Call Writing. Punter. Profit Taking. A price above the face value of a share or any other financial security. Out of the money-Option exercised price is above (in case of call) or below (in case of put) prevailing price of underlying asset. 2. debentures. Price Gap.Selling shares when their prices have risen above their purchase price. Naked Option.A Call option for which the seller does not own the supporting shares. when the market price has risen. 40 . government bonds. growth and risk minimization. and selling them to make a quick profit.Highest bid and lowest offers for a share.Combined holding of many kinds of financial securities. Quoted Price.Written instruction to a share broker to buy or sell particular shares in a particular way. Unit Trust certificates. and holding them regardless of any information available in the market. Put Option-Right to sell at fixed price. Reducing risk by diversification and maximization of gains are the primary objects. and other financial assets.Small speculator who hopes to make a quick buck by buying shares. Purchase Order. buying them.A condition of the stock market in which not only inexperienced investors.Selling a share. but also sturdy bulls. One Way Market. Over the Counter Market or OTC Market. holding them for short period.Naïve Buy-and-Hold Strategy.

after a period of stagnancy or a declining trend.Issue of shares at par or at a premium by an existing company to its shareholders in a certain proportion to their holdings. Record Date.A level at which the rise in price of a share has repeated halted. Retail Investor. and whose prices are quoted on the Official List.The shares of a company which are officially registered on a stock exchange. Rally. Ramping. Rights Issue. Running Ahead. Rigging.Total annual sales divided by the average inventory shows the speed with which stock has been turned over.10 shares. Roll Over.He is the individual buying shares for himself.Manipulation of share prices so as to attract naïve investors to buy or sell shares.For the purpose of dividend distribution and entitlements to Bonus or Rights Issues. Scrip.Quoted Shares.Transfer of funds from one investment to another. With computerized share scan the process has now become much simpler. as there are more sellers at that price than buyers. 41 . 10 or 50 in the case of Rs. as opposed to the institutional investor who buys for others. financial and investment criteria.Large-scale buying of a stock from the market with the object of boosting the image of the stock and the company behind it to increase its demand and consequently its price.A process of looking for shares.Noticeable rise in the price of a share. Rate of Turnover.Share Certificate. Round Lot.A broker buying or selling a share on his own account before his client’s order for the same share. Sauda Book. or a noticeable rise in the share market index. which meet predetermined. and 10 or 5 for Rs.The minimum number of shares in a trading lot. as a matter of their right to receive preferential treatment. Resistance Level. a company fixes a date on which a shareholder must officially own shares to qualify. Screening Stocks.100 shares.A book used by members of a stock exchange or their authorized assistants to record sales and purchase transactions.

When a client fails to pay and take delivery of the shares bought on behalf of him by the broker. which he doesn’t possess.In a spot delivery contract the delivery of share certificates and payment for them have to be concluded on the same day or the next day. Set up in 1988 to provide post-trade services like holding stocks on behalf of investors. Sell Out.Documentary evidence of the ownership of a block of shares.A share is one unit of ownership of a company. Sensitive Market. 42 . the broker sells off the shares at the best market price and the client is responsible for any financial loss to the broker. Distinguished from the primary market in which the issuer sells shares directly to the investor. Share Certificate.A person or a legal entity who owns equity or preference shares of a company. transactions in which are made through the clearinghouse of the stock exchange. Share Premium. by a speculator. Seller’s Market. In hand delivery contracts the delivery and payments have to be made on an agreed date.Market easily influenced by good or bad news.Characterized by a shortage of shares in the market in relation to their demand and consequent high prices. indicating a BULL MARKET. Shareholder. not exceeding a fortnight from the date of contract.An amount in excess of the face value of a share charged by a company on its share issue. the securities market & for matters connected therewith or incidental to. Settlement/Badla Trading –Buy share even if we do not have the requisite amount of money or sell shares even if we do not have the Share Certificates. Securities Market-refers to the markets for those financial instruments/ claims/ obligations that are commonly & readily transferable by sale.is the National Regulatory body for the securities market set up under the SEBI ACT. Settlement Date.The most widely traded shares. CLEARED SECURITIES. SHCIL-Stock Holding Corporation of India Ltd. also known as GROUP A SECURITIES. 1992 to ‘protect the interests of investors in securities & to promote the development of.’ Secondary Market. Share. Specified Shares.Place where already issued and outstanding shares are bought and sold. Selling Short.Sale of shares.SEBI (Securities & Exchange Board of India). & to regulate.

Delivery of shares and payment for the same on the date of purchase or within 48 hours.The area in a stock exchange in which dealers trade through personal contact. by paying BACKWARDATION. Take a Position.Settling of accounts on ACCOUNTS DAY.Commodities market in which goods are sold against cash and delivered immediately. as against impersonal screen trading. Take Delivery. An association of individual members called member brokers/ members/ brokers formed for the purpose of regulating & facilitating the buying & selling securities by the public & institutions at large. 1956. Stock Option. which have been bought on his account. Stock Exchange. in order to hedge the investment. Stock Exchange operates with due recognition from the Government under the Securities & Contracts (Regulations) Act.Spot Delivery. by actual delivery of shares or carrying forward one’s transactions to the next account day.Suspension of trading in a share for a time while important news from the issuing company is being evaluated.Physical acceptance of shares. Spot Market.To buy a share for the long-term. Unloading. BSE controls 80% of total volume of transactions. Trading Floor. Striking or Exercise Price: Fixed price at which the option may be exercised and the underlying asset bought or sold.Selling shares off when prices are falling to avoid further loss. Wash Sale. Trading Halt.A marketplace where shares change hands for consideration.Buying & selling of a share simultaneously or within a short period of time by an individual or a group to generate artificial market activity and a rise in the share’s price which the manipulator’s can then cash in on. Squaring Up. 43 . by a client.In share trading. it is the right to buy or sell a hare at a particular price within a particular period.

Revenue of the company grew at a CAGR of 159% from FY03 to FY07. Indiabulls has demonstrated deep understanding and commitment to Indian Real Estate market by winning competitive bids for landmark properties in Mumbai and Delhi. consumer secured & unsecured credit. derivatives trading. It is currently evaluating several large-scale projects worth several hundred million dollars. research & advisory services. Goldman Sachs. Consolidated net worth of the group is around USD 510 million (31st March 2007). profits of the company grew at a CAGR of 184%. Indiabulls serves the financial needs of more than 4. During the same period. Indiabulls through its group companies has entered Indian Real Estate business in 2005.000 customers with its wide range of financial services and products from securities.50. Merrill Lynch. 44 . loan against shares and mortgage & housing finance. Indiabulls Financial Services Ltd is listed on the National Stock Exchange. Indiabulls and its group companies have attracted USD 500 million of equity capital in Foreign Direct Investment (FDI) since March 2000. Some of the large shareholders of Indiabulls are the largest financial institutions of the world such as Fidelity Funds.Indiabulls is India’s leading Financial Services and Real Estate company having over 640 branches all over India. The market capitalization of Indiabulls is around USD 2.350 million (25th April 2007). Morgan Stanley and Farallon Capital. Business of the company has grown in leaps and bounds since its inception. depositary services. With around 4000 Relationship Managers. Bombay Stock Exchange and Luxembourg Stock Exchange. Indiabulls helps its clients to satisfy their customized financial goals. a respected US based investment firm. Indiabulls became the first company to bring FDI in Indian Real Estate through a JV with Farallon Capital Management LLC.

Indiabulls started its consumer finance business.2000-01 • Indiabulls Financial Services Ltd. • 2005-06 • • • Indiabulls has acquired over 115 acres of land in Sonepat for residential home site development. Indiabulls ventured into Insurance distribution and commodities trading. IPO distribution and Equity Research. F&O. Merrill Lynch and Goldman sac. Mutual fund. established India’s one of the first trading platforms with the development of an in house team. Indiabulls entered the Indian Real Estate market and became the first company to bring FDI in Indian Real Estate. Wholesale Debt. 45 . 2001-03 • Indiabulls expands its service offerings to include Equity. Indiabulls is a market leader in securities brokerage industry. Indiabulls won bids for landmark properties in Mumbai. With around 31% share in online trading. Company focused on brand building and franchise model. one of the renowned investment banks in the world have increased their shareholding in Indiabulls. • 2003-04 • • • 2004-05 • Indiabulls came out with its initial public offer (IPO) in September 2004.

6. Farallon Capital has agreed to invest Rs. Indiabulls Financial Services Ltd. 2000 million for Indiabulls subsidiaries Viz. Indiabulls has received an “in principle approval” from Government of India for development of multi product SEZ in the state of Maharashtra. KBD has acquired 35.. Indiabulls Credit Services Ltd. and Indiabulls Housing Finance Ltd. • 46 . • • • • 2006-07 • • • Indiabulls entered in a 50/50 joint venture with DLF. acquired 8.8 acres of land from Delhi Development Authority through a competitive bidding process for Rs 450 crore to develop residential apartments. Board resolves to Amalgamate Indiabulls Credit Services Limited and demerge Indiabulls Securities Limited. LN Mittal promoted LNM India Internet venture Ltd. has subscribed to new shares and has also acquired a minority shareholding from the Company. Dev Property Development plc. Kenneth Builders & Developers (KBD).2% stake in Indiabulls Credit Services Ltd. Indiabulls Financial Services Ltd. is included in the prestigious Morgan Stanley Capital International Index (MSCI). Indiabulls ventured into commodity brokerage business. the world’s largest hedge fund committed Rs.• Farallon Capital and its affiliates. Steel Tycoon Mr.440 million in Indiabulls Financial Services Ltd.

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