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1.1 General Introduction of the project

A good broker system must be able to cope with an extremely complex and dynamic
The microstructure of the stock market in which brokers work is highly dynamic and volatile.
Many stocks are available to be bought and sold, each exhibiting its own patterns and
characteristics that are highly unpredictable. With so many options and considerations that need
to be taken into account, it is an extremely difficult task for a broker to investigate aspects of the
stock market and consistently provide effective advice to their clients.
Thus, brokers perform their day-to-day tasks with the aid of a broker system.
Such a system should provide tools for interacting with exchanges and performing analysis. As a
consequence, these broker systems are quite large and complicated by themselves. This research
aims to analysis Stock broker on the basis of their services, products, growth, and their
competitiveness. Because Stockbrokers are one of the main participants in stock exchanges
worldwide, they often act as an agent for their clients, making trades on their behalf. They also
act as advisors, providing suggestions to their clients on what stocks to buy and sell.
Far Sight Securities Pvt. Ltd, is financial research Services Company based in Mumbai, India.
The company serves financial market players across the Mumbai with customize and
readymade research products.
Far Sight Securities Pvt. Ltd is an innovative financial services provider and advisory firm.
Far Sight Securities Pvt. Ltd In addition to well experienced teams of Insurance
Advisors and Distributors, they cater to every financial need, from loans, mutual
funds and equity broking to wealth advisory, with a full-time employee base


1.2 Objective of Study
Indias Economic growth is not a consumption driven growth but it is an Investment driven
growth. And the young population is more and more investing in the stock market and this led to
a rising participation of domestic investors. But they do not get the proper guidance and not
knowing much about the investment. Without having proper knowledge about the companys
fundamentals and business, most of the Indian Investors put the money in an unknown business
and suffering losses or their Investment has not been growing as what they expect.

So in this project, I focused on the individual Investor who always believe on long term
Investment and can make a good portfolio, giving the proper guidance regarding the fundamental
analysis which many analysts and experts follows, it includes various simpler strategies that any
one can apply and get entered into the stock market and can select a good stock by their own
analysis albeit rely on the information of brokers and At last, investor also blame to a broker.
Definitely get the good returns on their holding.
The objectives of Investment Analysis & Portfolio Management can be categorized as follows:
To study about the role of Broking firm and at Far Sight Securities Pvt. Ltd
To Study about BSE and NSE
To study about trading Secondary market by Far Sight Securities Pvt. Ltd.
To study Broking, IPO, Portfolio, Loan Advisory, Insurance Advisory.


1.3 Scope of Study
Investment decision are crucial as they involve risk and uncertainty and it become even more
crucial for an investor to make investment decision with his hard earned money as he does not
want to lost it. This brings about the need for Investment analysis. Investment analysis helps the
Investments decision-maker by identifying the fairly priced or under price Investment which are
most likely to produce the desired results. In simple words, it helps the investor to take correct
investment decisions.
Investment analysis involves detailed analysis of security, projection of future dividends,
forecast of share price in future and estimating intrinsic value of security based on forecast of
earnings and dividends. In a simpler sense, Investment analysis is the analysis of fundamental
value of the shares and its forecast for the future for the future through calculation of intrinsic
worth of the share.
Identification of the Investors objectives, constraints and preferences at Far Sight Securities Ltd
Strategies are to be developed and implemented in tune with Investment policy
To reduce the future risk in advance.
To earn maximum profit in the Investment.
Review and monitoring of the performance of the Portfolio.
Finally the evaluation of the Portfolio.


Capital markets may be classified as primary markets and secondary markets. In primary
markets, new stock or bond issues are sold to investors via a mechanism known as underwriting.
In the secondary markets, existing securities are sold and bought among investors or traders,
usually on a securities exchange, over-the-counter, or elsewhere.

The primary market is that part of the capital market that deals with the issuance of new
securities. Companies, governments or public sector institutions can obtain funding through the
sale of a new stock or bond issue. This is typically done through a syndicate of securities dealers.
The process of selling new issues to investors is called underwriting. In the case of a new stock
issue, this sale is an initial public offering (IPO). Dealers earn a commission that is built into the
price of the security offering, though it can be found in the prospectus.

Capital markets

primary markets


Features of primary markets are:
This is the market for new long term equity capital. The primary market is the market
where the securities are sold for the first time. Therefore it is also called the new issue
market (NIM).
In a primary issue, the securities are issued by the company directly to investors.
The company receives the money and issues new security certificates to the investors.
Primary issues are used by companies for the purpose of setting up new business or for
expanding or modernizing the existing business.
The primary market performs the crucial function of facilitating capital formation in the
The new issue market does not include certain other sources of new long term external
finance, such as loans from financial institutions. Borrowers in the new issue market may
be raising capital for converting private capital into public capital; this is known as
"going public."
The financial assets sold can only be redeemed by the original holder.

Methods of issuing securities in the primary market are:
An initial public stock offering (IPO) referred to simply as an "offering" or "flotation," is when a
company (called the issuer) issues common stock or shares to the public for the first time. They
are often issued by smaller, younger companies seeking capital to expand, but can also be done
by large privately-owned companies looking to become publicly traded.
In an IPO the issuer may obtain the assistance of an underwriting firm, which helps it determine
what type of security to issue (common or preferred), best offering price and time to bring it to
An IPO can be a risky investment. For the individual investor, it is tough to predict what the
stock or shares will do on its initial day of trading and in the near future since there is often little

historical data with which to analyze the company. Also, most IPOs are of companies going
through a transitory growth period, and they are therefore subject to additional uncertainty
regarding their future value.
Secondary market refers to a market where securities are traded after being initially offered to
the public in the primary market and/or listed on the Stock Exchange. Majority of the
Trading is done in the secondary market. Secondary market comprises of equity markets and the
debt markets.

The secondary market enables participants who hold securities to adjust their holdings in
response to changes in their assessment of risk and return. They also sell securities for cash to
meet their liquidity needs. The secondary market has further two components, namely the over-
the-counter (OTC) market and the exchange-traded market. OTC is different from the market
place provided by the Over The Counter Exchange of India Limited. OTC markets are
essentially informal markets where trades are negotiated. Most of the trades in government
securities are in the OTC market. All the spot trades where securities are traded for immediate
delivery and payment take place in the OTC market. The exchanges do not provide facility for
spot trades in a strict sense. Closest to spot market is the cash market where settlement takes
place after some time. Trades taking place over a trading cycle, i.e. a day under rolling
settlement, are settled together after a certain time (currently 2 working days). Trades executed
on the National Stock Exchange of India Limited (NSE) are cleared and settled by a clearing
corporation which provides notation and settlement guarantee. Nearly 100% of the trades settled
by delivery are settled in demit form. NSE also provides a formal trading platform for trading of
a wide range of debt securities including government securities.

A variant of secondary market is the forward market, where securities are traded for future
delivery and payment. Pure forward is outside the formal market. The versions of forward in
formal market are futures and options. In futures market, standardised securities are traded for
future delivery and settlement. These futures can be on a basket of securities like an index or an
individual security. In case of options, securities are traded for conditional future delivery.

There are two types of optionsa put option permits the owner to sell a security to the writer of
options at a predetermined price while a call option permits the owner to purchase a security
from the writer of the option at a predetermined price. These options can also be on individual
stocks or basket of stocks like index. Two exchanges, namely NSE and the Bombay Stock
Exchange, (BSE) provide trading of derivatives of securities.

The past few years in many ways have been remarkable for securities market in India. It has
grown exponentially as measured in terms of amount raised from the market, number of stock
exchanges and other intermediaries, the number of listed stocks, market capitalisation, trading
volumes and turnover on stock exchanges, and investor population. Along with this growth, the
profiles of the investors, issuers and intermediaries have changed significantly. The market has
witnessed fundamental institutional changes resulting in drastic reduction in transaction costs
and significant improvements in efficiency, transparency and safety.

Reforms in the securities market, particularly the establishment and empowerment of SEBI,
market determined allocation of resources, screen based nation-wide trading, dematerialisation
and electronic transfer of securities, rolling settlement and ban on deferral products, sophisticated
risk management and derivatives trading, have greatly improved the regulatory framework and
efficiency of trading and settlement. Indian market is now comparable to many developed
markets in terms of a number of qualitative parameters.


Trading on the secondary markets

An Electronic trading platform being used at the Deutsche Brse. Most capital market
transactions are executed electronically, sometimes a human operator is involved, and sometimes
unattended computer systems execute the transactions, as happens in algorithmic trading.
Most capital market transactions take place on the secondary market. On the primary market,
each security can be sold only once, and the process to create batches of new shares or bonds is
often lengthy due to regulatory requirements. On the secondary markets, there is no limit on the
number of times a security can be traded, and the process is usually very quick. With the rise of
strategies such as high frequency trading, a single security could in theory be traded thousands of
times within a single hour. Transactions on the secondary market don't directly help raise
finance, but they do make it easier for companies and governments to raise finance on the
primary market, as investors know if they want to get their money back in a hurry, they will
usually be easily able to re-sell their securities. Sometimes secondary capital market transactions
can have a negative effect on the primary borrowers - for example, if a large proportion of
investors try to sell their bonds, this can push up the yields for future issues from the same entity.
An extreme example occurred shortly after Bill Clinton began his first term as President of the
United States; Clinton was forced to abandon some of the spending increases he'd promised in
his election campaign due to pressure from the bond markets. In the 21st century, several
governments have tried to lock in as much as possible of their borrowing into long dated bonds,
so they are less vulnerable to pressure from the markets.
A variety of different players are active in the secondary markets. Regular individuals account
for a small proportion of trading, though their share has slightly increased; in the 20th century it

was mostly only a few wealthy individuals who could afford an account with a broker, but
accounts are now much cheaper and accessible over the internet. There are now numerous small
traders who can buy and sell on the secondary markets using platforms provided by brokers
which are accessible with web browsers. When such an individual trades on the capital markets,
it will often involve a two stage transaction. First they place an order with their broker, then the
broker executes the trade. If the trade can be done on an exchange, the process will often be fully
automated. If a dealer needs to manually intervene, this will often mean a larger fee. Traders in
investment banks will often make deals on their bank's behalf, as well as executing trades for
their clients. Investment banks will often have a department called capital markets: staff in this
department try to keep aware of the various opportunities in both the primary and secondary
markets, and will advise major clients accordingly. Pension and sovereign wealth funds tend to
have the largest holdings, though they tend to buy only the highest grade (safest) types of bonds
and shares, and often don't trade all that frequently. According to a 2012 Financial Times article,
hedge funds are increasingly making most of the short term trades in large sections of the capital
market (like the UK and US stock exchanges), which is making it harder for them to maintain
their historically high returns, as they are increasingly finding themselves trading with each other
rather than with less sophisticated investors.
There are several ways to invest in the secondary market without directly buying shares or
bonds. A common method is to invest in funds or exchange-traded funds. It's also possible to buy
and sell derivatives that are based on the secondary market; one of the most common being
contract for difference - these can provide rapid profits, but can also cause buyers to lose more
money than they originally invested .


When a company lists its shares on a public exchange, it will almost invariably look to issue
additional new shares in order at the same time. The money paid by investors for the newly-
issued shares goes directly to the company (in contrast to a later trade of shares on the exchange,
where the money passes between investors). An IPO, therefore, allows a company to tap a wide
pool of stock market investors to provide it with large volumes of capital for future growth. The
company is never required to repay the capital, but instead the new shareholders have a right to
future profits distributed by the company and the right to a capital distribution in case of a
The existing shareholders will see their shareholdings diluted as a proportion of the company's
shares. However, they hope that the capital investment will make their shareholdings more
valuable in absolute terms.
In addition, once a company is listed, it will be able to issue further shares via a rights issue,
thereby again providing itself with capital for expansion without incurring any debt. This regular
ability to raise large amounts of capital from the general market, rather than having to seek and
negotiate with individual investors, is a key incentive for many companies seeking to list.


Chapter 3: About NSE& BSE
3.1: NSE

The National Stock Exchange (NSE) is India's leading stock exchange covering various cities
and towns across the country. NSE was set up by leading institutions to provide a modern, fully
automated screen-based trading system with national reach. The Exchange has brought about
unparalleled transparency, speed & efficiency, safety and market integrity. It has set up facilities
that serve as a model for the securities industry in terms of systems, practices and procedures.

NSE has played a catalytic role in reforming the Indian securities market in terms of
microstructure, market practices and trading volumes. The market today uses state-of-art
information technology to provide an efficient and transparent trading, clearing and settlement
mechanism, and has witnessed several innovations in products & services viz. demutualization of
stock exchange governance, screen based trading, compression of settlement cycles,
dematerialization and electronic transfer of securities, securities lending and borrowing,
professionalization of trading members, fine-tuned risk management systems, emergence of
clearing corporations to assume counterparty risks, market of debt and derivative instruments
and intensive use of information technology.
Committed to improve the financial well-being of people.
To continue to be a leader, establish global presence; facilitate the financial well being of people.


NSE is committed to the following core values:
Customer focused culture
Trust, respect and care for the individual
Passion for excellence

Mutual Funds
Exchange Traded Funds
Initial Public Offerings
Security Lending and Borrowing Scheme
Equity Derivatives
Currency Derivatives
Interest Rate Futures


Retail Debt Market
Wholesale Debt Market
Corporate Bonds


3.2: BSE

Established in 1875, BSE Ltd. (formerly known as Bombay Stock Exchange Ltd.), is Asias first
Stock Exchange and one of Indias leading exchange groups. Over the past 137 years, BSE has
facilitated the growth of the Indian corporate sector by providing it an efficient capital-raising
platform. Popularly known as BSE, the bourse was established as "The Native Share & Stock
Brokers' Association" in 1875. BSE is a corporatized and demutualised entity, with a broad
shareholder-base which includes two leading global exchanges, Deutsche Bourse and Singapore
Exchange as strategic partners. BSE provides an efficient and transparent market for trading in
equity, debt instruments, derivatives, mutual funds. It also has a platform for trading in equities
of small-and-medium enterprises (SME).

More than 5000 companies are listed on BSE making it world's No. 1 exchange in terms of listed
members. The companies listed on BSE Ltd command a total market capitalization of USD 1.32
Trillion as of January 2013. It is also one of the worlds leading exchanges (3rd largest in
December 2012) for Index options trading (Source: World Federation of Exchanges).

BSE also provides a host of other services to capital market participants including risk
management, clearing, settlement, market data services and education. It has a global reach with
customers around the world and a nation-wide presence. BSE systems and processes are
designed to safeguard market integrity, drive the growth of the Indian capital market and
stimulate innovation and competition across all market segments. BSE is the first exchange in
India and second in the world to obtain an ISO 9001:2000 certification. It is also the first
Exchange in the country and second in the world to receive Information Security Management
System Standard BS 7799-2-2002 certification for its On-Line trading System (BOLT). It
operates one of the most respected capital market educational institutes in the country (the BSE

Institute Ltd.). BSE also provides depository services through its Central Depository Services

BSEs popular equity index - the S&P BSE SENSEX - is India's most widely tracked stock
market benchmark index. It is traded internationally on the EUREX as well as leading exchanges
of the BRCS nations (Brazil, Russia, China and South Africa).
BSE has won several awards and recognitions that acknowledge the work done and progress
made like The Golden Peacock Global CSR Award for its initiatives in Corporate Social
Responsibility, NASSCOM - CNBC-TV18s IT User Awards, 2010 in Financial Services
category, Skoch Virtual Corporation 2010 Award in the BSE Star MF category and
Responsibility Award (CSR) by the World Council of Corporate Governance. Its recent
milestones include the launching of BRICSMART indices derivatives, BSE-SME Exchange
platform, S&P BSE GREENEX to promote investments in Green India.

BSE Ltd, the first ever stock exchange in Asia established in 1875 and the first in the country to
be granted permanent recognition under the Securities Contract Regulation Act, 1956, has had an
interesting rise to prominence over the past 137 years.

While BSE Ltd is now synonymous with Dalal Street, it was not always so. The first venue of
the earliest stock broker meetings in the 1850s was in rather natural environs - under banyan
trees - in front of the Town Hall, where Horniman Circle is now situated. A decade later, the
brokers moved their venue to another set of foliage, this time under banyan trees at the junction
of Meadows Street and what is now called Mahatma Gandhi Road. As the number of brokers
increased, they had to shift from place to place, but they always overflowed to the streets. At last,
in 1874, the brokers found a permanent place, and one that they could, quite literally, call their
own. The new place was, aptly, called Dalal Street (Brokers' Street).

The journey of BSE Ltd. is as eventful and interesting as the history of India's securities market.
In fact, as India's biggest bourse in terms of listed companies and market capitalization, almost

every leading corporate in India has sourced BSE Ltd. services in raising capital and is listed
with BSC Ltd

Even in terms of an orderly growth, much before the actual legislations were enacted, BSE Ltd.
had formulated a comprehensive set of Rules and Regulations for the securities market. It had
also laid down best practices which were adopted subsequently by 23 stock exchanges which
were set up after India gained its independence.

BSE Ltd., as a institutional brand, has been and is synonymous with the capital market in India.
Its S&P BSE SENSEX is the benchmark equity index that reflects the health of the Indian
"Emerge as the premier Indian stock exchange with best-in-class global practice in technology,
products innovation and customer service."

Products of BSE
Market Data
Product Information
Market Data Products
Corporate Data
EOD Products
Other Data Products
Product Policy
Product Pricing
Historical Data

Index Licensing
Dissemination Media
Technology Services
Smart Order Routing
Algo Trading
Mobile Trading
Streaming Quotes on Mobiles
Direct Market Access
Electronic Contract Notes


Chapter 4: Far Sight Securities Ltd.

4.1: Products and Services
Brokerage, Wealth Management, Loans
Equity Derivatives
Currency Derivatives
Online Mutual Fund
Commodity Derivatives
Interest Rate Derivatives
Research *
Portfolio Management
Investment Advisory
Depository Services
Online IPO Bidding
Home Loans Advisor
Loan against Property Advisor
Personal Loans Advisor

*Through Fundamental analysis Technical analysis Industry & Sector
Analysis Investor Conferences.


4.2: SWOT Analysis

Renowned pedigree of Shareholder Group
Robust IT Infrastructure
Dependable Risk Management processes
Strong compliance, and prompt customer support
Research-based investment support
Pan-India branch offices to service customer

Low awareness due t o l ack of advertisement .
Lack of loyal cli ent age
Devel opi ng product.

Untapped market
Increased spending power
Changing mindset of consumers
Unpredi ct abl e Sensex

Stiff competit ion from the competi tors
Bett er products


4.3: What Does Far Sight Securities Pvt. Ltd Do.
1. Personalized Service
Company believes in providing personalized service and individual attention to each client to
ensure that we understand their goals and help them achieve it.
2. Professional Advice
Company offers expert advice on equity and debt portfolios with an objective to provide
consistent long-term return while taking calculated market risks. Companies approach helps
clients build a proper mix of products, and not concentrate on just one individual product. Hence,
serving long term objectives in the best way.
3. Long-term Relationship
Company believes that long-term vision is the only means to steady wealth creation. However to
achieve this one also needs to take advantage of short-term market opportunities while not losing
sight of long-term objectives. Hence it partners all its clients in realizing their long-term vision.
4. Access to Research Reports
Company provides the clients with access to the expert opinion of economists and analysts.
5. Transparency and Confidentiality
Companies clients receive regular portfolio statements from relationship managers via email.


4.3: Capital controls
Capital controls are measures imposed by a state's government aimed at managing capital
account transactions - in other words, capital market transactions where one of the counter-
parties involved is in a foreign country. Whereas domestic regulatory authorities try to ensure
that capital market participants trade fairly with each other, and sometimes to ensure institutions
like banks don't take excessive risks, capital controls aim to ensure that the macroeconomic
effects of the capital markets don't have a net negative impact on the nation in question. Most
advanced nations like to use capital controls sparingly if at all, as in theory allowing markets
freedom is a win-win situation for all involved: investors are free to seek maximum returns, and
countries can benefit from investments that will develop their industry and infrastructure.
However sometimes capital market transactions can have a net negative effect - for example, in a
financial crisis, there can be a mass withdrawal of capital, leaving a nation without sufficient
foreign currency to pay for needed imports. On the other hand, if too much capital is flowing into
a country, it can push up inflation and the value of the nation's currency, making its exports
uncompetitive. Some nations such as India have also used capital controls to ensure that their
citizen's money is invested at home, rather than abroad.

4.4 : Derivatives

Derivative is a product whose value is derived from the value of one or more basic variables,
called underlying. The underlying asset can be equity, index, foreign exchange (forex),
commodity or any other asset.
Basically, in derivative market we can buy whole lot of shares
Common example of derivative in which FAR SIGHT deals in Futures and Options
Example of a simple derivative contract:
Mr X buys a futures contract. He will make a profit of Rs1000 if the price of Infosys rises by Rs
1000.If the price is unchanged Ram will receive nothing. If the stock price of Infosys falls by Rs
800 he will lose Rs800.As we can see, the above contract depends upon the price of the Infosys

scrip, which is the underlying security. Similarly, a futures trading have already started in Sensex
futures and Nifty futures. The underlying security in this case is the BSE Sensex and NSE Nifty.
What is an Index?
To understand the use and functioning of the index derivatives markets, it is necessary to
understand the underlying index. A stock index represents the change in value of a set of stocks,
which constitute the index. A market indexes very important for the market players as it acts as a
barometer for the market behavior and as an underlying in derivative instruments such as index
Index futures
A futures contract is an agreement between two parties to buy or sell an asset at a certain time in
the future at a certain price. Index futures are all futures contract where the underlying is the
stock index (Nifty or Sensex) and helps a trader to take a view on the market as a whole.
Index futures permits speculation and if a trader anticipates a major rally in the market he can
simply buy a futures contract and a hope for a price rise on the futures contract when the rally
occurs. We shall learn in subsequent lessons how one ca leverage ones position by taking
position in the futures market.
In India we have index futures contracts based on S and P CNX Nifty and The BSE Sensex and
near 3 months duration contracts are available at all times. Each contract expires on the last
Thursday of the expiry month and simultaneously a new contract is introduced for trading after
expiry of a contract.
What are options?
Some people remain puzzled by options. The truth is that most people have been using options
for some time because options are built into everything from mortgages to insurance.

An option is a contract which gives the buyer the right but not the obligation to buy or sell shares
of the underlying security at a specific price on or before a specific date.

Option, as the word suggests, is a choice given to the investor to either honor the contract or if
he chooses not to walk away from the contract. To begin there are two kinds of options Call
Options and Put Options.
Call Option:
A Call Option is an option to buy a stock at a specific price on or before a certain date. In this
way, Call options are like security deposits. If for example, you wanted to rent a certain property
and left a security deposit for it, the money would be used to insure that you could, in fact rent
that property at the price agreed upon when you returned. If you never returned , you increase in
value as the value on the underlying instrument rises.
When you buy a Call option, the price you pay for it, called the option premium secures your
right to but that certain stock at a specified price called the strike price. If you decide not to use
the option to buy the stock, and you are not obligated to, your only cost is the option premium.
Put Option:
Put options are options to sell a stock at a specific price on or before a certain date. In this way,
Put option are like insurance policies.



Pays premium
Right to exercise and buy the shares
Profit from rising prices
Limited losses, Potentially unlimited gain
Receives premium
Obligation to sell shares if exercised
Profits from falling prices or remaining
Profits unlimited losses, limited gain

Pays premium
Right to exercise and sell shares
Profits from falling prices
Limited losses, Potentially unlimited gain
Receives premium
Obligation to buy shares if exercised
Potentially unlimited losses, limited gain.

*All the Nifty Index options are European option which must be exercised on the expiry of the
All the American option can be exercised during tenure of the contract.
Definition Trading
Participants in the stock market range from small investors to large hedge fund traders, who can
be based anywhere. Their orders usually end up with a professional at a stock exchange, who
executes the order.

Some exchanges are physical locations where transactions are carried out on a trading floor; by a
method known as open outcry. This type of auction is used in stock exchanges and commodity
exchanges where traders may enter verbal bids and offers simultaneously. The other type of
exchange is a virtual kind, composed of a network of computers where trades are made
electronically via traders at computer terminals.
Actual traders are based on an auction market paradigm where a potential buyer bids a specific
price for stock and a potential seller asks a specific price for the stock.(Buying
or selling at market means you will accept any bid price or ask price for the stock.)
The term stock market is a concept for the mechanism that enables the trading of company stocks
(collective shares),Other securities ,and derivatives. Bonds are still traditionally traded in an
informal, over the counter market known as bond market .Commodities are traded in
commodities markets, and derivatives are traded in a variety of markets(but, like bonds, mostly
over the counter)

IPO (Initial Public Offering)
An Initial Public Offer (IPO) is the selling of securities to the public in the primary market. It is
when an unlisted company makes either a fresh issue of securities or an offer for sale of its
existing securities or both for the first time to the public. This paves way for listing and trading
of the issuers securities. The sale of securities can be either through book building or through
normal public issue.

Procedure for issuing an IPO:

When a company wants to go public, the first thing it does is hire an investment bank, which
does the underwriting. Underwriting is the process of raising money by either debt or equity (in
this case we are referring to equity). You can think of underwriters as middlemen between
companies and the investing public. The biggest underwriters are Goldman Sachs, Merrill
Lynch, Credit Suisse First Boston and Morgan Stanley. The company and the investment bank
will first meet to negotiate the deal. Items usually discussed include the amount of money a

company will raise, the type of securities to be issued and all the details in the underwriting
agreement. The deal can be structured in a variety of ways. For example, in a firm commitment,
the underwriter guarantees that a certain amount will be raised by buying the entire offer and
then reselling to the public. In a best efforts agreement, however, the underwriter sells securities
for the company but doesn't guarantee the amount raised. Also, investment banks are hesitant to
shoulder all the risk of an offering. Instead, they form a syndicate of underwriters. One
underwriter leads the syndicate and the others sell a part of the issue. Once all sides agree to a
deal, the investment bank puts together an offer document to be filed with the SEBI. This
document contains information about the offering as well as company info such as financial
statements, management background, any legal problems, where the money is to be used and
insider holdings. The SEBI then requires a cooling off period, in which they investigate and
make sure all material information has been disclosed. Once the SEBI approves the offering, a
date (the effective date) is set when the stock will be offered to the public.


5.1: Intraday Trading
Intraday trading refers to opening and closing a position in a security in the same trading day.
This can be buying and selling to capitalize on a potential rise in a security's value or shorting
and covering the short to capitalize on a potential drop in value. Intraday traders capitalize on
small moves in the value of a security by using "leverage" or "margin", which basically means
borrowing money. Most day trading accounts are allowed to take an initial position in a security
that is 4X the value of their account (per securities regulations), but some professional accounts
get more leverage (i.e. 10X). For instance, a day trader with $10,000 in his/her account can take
a $40,000 position in a security for day trading purposes. This amount is not allowed to be held
overnight (only about 2X the value of the account can be held overnight per securities regs). The
leverage inherent in day trading allows small gains in a position to yield meaningful profits (and
losses). Most day traders are very strict about cutting losses with "stop loss" orders. This limits
the potential downside (but not the upside) on any particular trade, hence the adage "cut your
losses short and let your profits run". With this basic strategy, a day trader can be wrong on 50%
of his/her trades and still make good money. Day trading styles vary from "scalpers", who take
positions for only a few minutes, to holding a position for most of the day. Some day traders are
momentum followers and jump onto any given move, while others try to identify intraday
reversals. Virtually all day traders use technical analysis (stock charting) heavily in their decision

Day trading refers to the practice of buying and selling financial instruments within the same
trading day such that all positions will usually (not necessarily always) be closed before the
market close of the trading day. This is the opposite of After-hours trading. Traders that
participate in day trading are called day traders.

Some of the more commonly day-traded financial instruments are stocks, stock options,
currencies, and a host of futures contracts such as equity index futures, interest rate futures, and
commodity futures.

Day trading used to be the preserve of financial firms and professional investors and speculators.
Many day traders are bank or investment firm employees working as specialists in equity
investment and fund management. However, day trading has become increasingly popular
among casual traders due to advances in technology, changes in legislation, and the popularity of
the Internet. Although collectively called day trading, there are many sub-trading styles within
day trading. A day trader is not necessarily very active. Depending on one's trading strategy, the
number of trades made in a day may vary from one to dozens or more.

Some day traders focus on very short or short-term trading, in which a trade may last seconds to
a few minutes. They buy and sell many times in a day, trading very high volumes daily and
therefore receiving big discounts from brokerage. Some day traders focus only on momentum or
trends. They are more patient and wait for a ride on the strong move which may occur on that
day. They make far fewer trades than the aforementioned traders.

Many day traders sell their positions before the market close of the trading day to avoid the risk
of price gaps (differences between the previous day's close and the next day's open price) at the
open. Some day traders consider this to be a golden rule to be obeyed at all times. Other traders
believe they should let the profits run, so it is acceptable to stay with a position after the market
Day traders often borrow money to trade. Since margin interests are typically only charged on
overnight balances, the extra costs discourage them from holding positions overnight.
Because of the nature of financial leverage and the rapid returns that are possible, day trading
can be either extremely profitable or extremely unprofitable, and high-risk profile traders can
generate either huge percentage returns or huge percentage losses. Some day traders manage to
earn millions per day solely by day trading.

Because of the high profits (and losses) that day trading makes possible, these traders are
sometimes portrayed as "bandits" or "gamblers" by other investors. Some individuals, however,
make consistent living day trading.
Nevertheless day trading can become very risky, especially if one has poor discipline, risk or
money management. The common use of buying on margin (using borrowed funds) amplifies
gains and losses, such that substantial losses or gains can occur in a very short period of time. In
addition, brokers usually allow bigger margins for day traders. Where overnight margins
required to hold a stock position are normally 50% of the stock's value, many brokers allow
pattern day trader accounts to use levels as low as 25% for intraday purchases. This means a day
trader with the legal minimum $25,000 in his account can buy $100,000 worth of stock during
the day, as long as half of those positions are exited before the market close. Because of the high
risk of margin use, and of other day trading practices, a day trader will often have to exit a losing
position very quickly, in order to prevent a greater, unacceptable loss, or even a disastrous loss,
much larger than his original investment, or even larger than his total assets.

Even when a position has made a profit, the trader has to offset the transaction costs and the
interest on the margin. It is commonly stated that 80-90% of day traders lose money. An analysis
of the Taiwanese stock market suggests that "less than 20% of day traders earn profits net of
transaction costs".

Upper circuit
Its also called buyers circuit. This happens when theres very few people (or no one) wants to
sell or no sellers are there in the market.
Lower circuit
Its also called Sellers Circuit .This happens when there are very few people (or no one) wants
to buy. An upper circuit is the percentage price beyond a which a stock price is not allowed to go
on that particular day say for example a stock has upper circuit as 5%, in a given day it cannot
go beyond that price after open value the price can go up to only 5% not beyond it.

Upper circuit is a system to curb excessive speculation in the stock market, applied by the stock
exchange authorities, when the index spurts or plunges by more than a fixed limit. Trading is
then suspended for some time to let the market cool down.
The market wide circuit breakers would be triggered by movement of either Sensex or NSE S&P
CNX Nifty whichever is breached earlier.
In case of a 10% movement of either of these indices, there would be a 1 hour market halt in
the movement takes place before 1 p.m. In case the movement takes place at or after 1 p.m. but
before 2.30 p.m. there will be a trading halt for 1 hour. In case the movement takes place at or
after 2.30pm there will be no trading halt at the 10% level and the market will continue trading.

In case of 15 % movement of either index, there will be 2 hours market halt if the movement
takes place before 1 pm. If the 15% percent trigger has reached on or after 1pm but before 2pm,
there will be 1 hour halt. If the 15% trigger has reached on or after 2pm the trading will halt for
the remaining day.

In case of 20% movement of the index, the trading will, be halted for the remaining day.
Although introduced in November 1992, it was used fir the first in Bombay Stock Exchange on
Tuesday, 9 March 1993 when the SENSEX declined for more than 5% from the opening level,
i.e. from 2451.20 to 2318.26. at that time the circuit was 5%.

What is Stop Loss?
A stop loss (i.e. a stop loss order) is used to limit the possible loss when a traders position go the
wrong way and start to lose money. A stop loss is basically a stock trading strategy to limit your
disadvantage. Trader is not always right, so only good stop loss strategy can protect you.

Yes stop loss orders are available in almost all types of trading. In Indian stock markets, only
limit orders are allowed.
A limit order is something like this:
Trigger price: 99
Sell price: 98
Quantity: 100
This means that if trade is recorded at 99 or lowers than 99, then an order is given at the
exchange to sell at 98.
A trade at Rs.99 will trigger the stop loss
In some international markets, market orders are also allowed stop loss orders... which means if
the trigger price is reached than a market order is generated.
A market stop loss order is something like this:
Trigger price: 99
Sell: at market
Quantity: 100
If a trade is recorded at 99 or lowers than 99, then a sell order is generated at market price... that
is 100 shares will be sold at whatever best price buyers are offering. Such orders can be
sometimes dangerous, because one doesnt know what this best price may be.
If the LTP (last traded price) was 99 and you give a sell order of 100 shares at the market
rate...these shares would be sold to best price offered.
If there are no buyers at price higher than 90... Then your shares will be sold at 90... As 90 are
the best price that youre getting.

If there are no buyers at price higher than 85... Then your shares will get sold at 85... As 85 are
the best price that youre getting. You may want any price but a market order means shares will
go at price that the market is offering.
What does equity represents?
1. Stock or any other representing an ownership interest.
2. On the BALANCE SHEET, the amount of funds contributed by the owners (the stockholders)
plus the retained earnings (or loss).Also referred to as shareholders equity
3. In the context of Margin Trading, the value of securities in a margin account minus what has
been borrowed from brokerage.
4. In the context of real estate, the difference between the current market value of the property
and the amount the owner stills owes on the mortgage. Thus, it is the amount, if any; the owner
would receive after selling a property and paying off the mortgage.


5.2: Investment Alternatives/Avenues
As an Investor you have a wide range of alternatives available to you. These Investment
alternatives/ Avenues are broadly classified into Financial Assets and Real Assets.
Real Assets are tangible assets such as residential house, commercial property, agricultural farm,
gold, precious stones and art objects like paintings, sculptures, etc.
Financial Assets are paper or electronic claims on some issuer such as government or corporate
body. The examples of Financial Assets are Equity Shares, Corporate Debentures, and
Government securities, Bonds, Deposits with Bank, Mutual Fund, Insurance policies and
Derivative Instrument etc. Financial Assets can be further divided into Marketable Financial
assets and Non-Marketable financial assets






Residential House
Commercial Property
Agricultural Farm
Precious Stones
Art Objects

Equity Shares
Preference Shares
Money Market Instruments like Treasury Bills, Commercial papers, Repos etc.
Bonds or Fixed income Securities like Government Securities, PSU Bonds, Private
Sector Debenture, etc.

Bank Deposits.
Post Office Time Deposits
National Saving Certificate (NSC)
Company Deposits
Employees Provident Fund
Public Provident Fund (PPF)
Security Analysis can be broadly classified into two types


Fundamental analysis is one of the important approaches to security analysis. When an Investor
want to make an investment decision he makes detailed analysis of the securities issued by the
companies in the market. In doing this he either rely on fundamentals of the company or on the
past price movements. Sometimes an investor considers both price trend and fundamentals of the
Fundamental analysis of a business involves analyzing its financial statements and health, its
management and competitive advantages, and its competitors and markets. When applied to
futures and forex, it focuses on the overall state of the economy, interest rates, production,
earnings, and management. When analyzing a stock, futures contract, or currency using
fundamental analysis
When the objective of the analysis is to determine what stock to buy and at what price, there are
two basic methodologies
Fundamental analysis maintains that markets may misprice a security in the short run but that the
"correct" price will eventually be reached. Profits can be made by trading the mispriced security
and then waiting for the market to recognize its "mistake" and reprice the security.
Investors can use any or all of these different but somewhat complementary methods for stock
picking. For example many fundamental investors use technical for deciding entry and exit
points. Many technical investors use fundamentals to limit their universe of possible stock to
'good' companies.
The choice of stock analysis is determined by the investor's belief in the different paradigms for
"how the stock market works". See the discussions at efficient-market hypothesis, random walk
hypothesis, Capital Asset Pricing Model, Fed model Theory of Equity Valuation, Market-based
valuation, and Behavioural finance.


Fundamental analysis includes:
1. Economic analysis 2.Industry analysis 3.Company analysis

Balance Sheet Industry Growth Business Model
Income Statement Market Share Competitive Advantage
Cash Flow Statement Competition Managements


Data Analysis:

The data after collection has proposed & analyzed in accordance with the outline
laid down for the purpose at the time of developing the research plan.
The data collected in the stated manner tabulated according to the corresponding
variables. The table thus prepared were analyzed & interpreted to draw the
meaning, out of the study.
ICICI Direct
Brokerage and fees
Account opening fees: Rs 750/- (one time non-refundable)
Brokerage: brokerages vary on volume of trade and inclusive of demat transaction charges,
service taxes and courier charges for contract notes. It ranges from 0.1% to 0.15% for margin
trades, 0.2% to 0.425% for squared off trades and 0.4% to 0.85% on delivery based trades.
Advantage of ICICI Direct
1. 3-in-1 account integrates your banking, broking and demat accounts. All accounts are
from ICICI and very well integrated. This feature makes ICICI most interesting player in online
trading facility. There is absolutely no manual interfere require. This is truly online trading
2. Unlike most of the online trading companies in India which transferring money to the
brokers pool or towards deposits, at ICICI Direct you can manage your own demat and bank
accounts through Money from selling stock is available in ICICI bank account
as soon as the ICICI Direct receive it.
3. Investment online in IPOs, Mutual Funds, GOI Bonds, and Postal Savings Schemes all
from one website. General insurance is also available from ICICI Lombard.
4. Trading is available in both BSE and NSE.

Disadvantage of ICICI Direct

1. Getting access to website during market session can be frustrating.
2. ICICI Direct brokerage is high and negotiable.
3. Not all stocks are available under Margin Plus.

Some stock trading companies charge direct percentage while others charge a fixed amount per
Rs 100. Sharekhan charges 0.5% for intraday shares and 0.1% for intraday or you could say
sharekhan charges 50 paisa per Rs 100.
Advantages of sharekhan
1. Online trading is very user friendly and one doesnt need any software to access.
2. They provide good quality of services like daily SMS alerts, mail alerts, stock
recommendations etc.
3. Sharekhan has ability to transfer funds from most banks. Unlike ICICI Direct, HDFC
See, etc., so investor not really needs to open an account with a particular bank as it can
establish link with most modern banks.

Disadvantages of sharekhan
1. They charge minimum brokerage of 10 paisa per stock would not let you trade stocks
below 20rs. (If you trade, you will lose majority of your money in brokerage).
2. Lots of hidden rules and charges.
3. They do not provide facility to book limit order trades during after hours.
4. Classic account holders cannot trade commodities.
5. Cannot purchase mutual funds online.

Brokerage and fees:
Account opening fees: Rs 1200/- (one time non refundable) as below:
250/- Equity Trading Account opening charge
200/- Demat Account opening charge
750/- software changes

Advantages of India bulls equity trading account
1. Brokerage is less compare to other online trading companies.
2. Provide trading terminal power bulls, a java based software. Its very fast in terms of
speed and execution.

Brokerage and fees:
Rs 799/-(Including trading account, bank account and DP account with HDFC)
Pease note: HDFC Bank savings account required a quarterly minimum balance of Rs 2500/-.
If you already have saving account or DP accounted with HDFC, you could link them with
trading account.

Reliance Money
Brokerage and Fees;
Reliance Money offers lowest brokerage rates in todays online stock trading industry in India.
The brokerages are as low as 0.075 for delivery based trading and 0.02 for intraday.


Advantages of Reliance Money
1. Extra security features with (Security Token), which is the most secured and tested
technology in computer world.
2. Simple, easy and fast online stock trading.
3. Almost all investment options are available under one account including Equity Trading,
Derivatives, Forex, Commodity, IPO, Mutual Funds and Insurance.
4. Branches are available in all major cities and the number is growing.

Brokerage and account opening fees:
Religare offers 3 types of accounts
Below are the details about the Fees and Activation Charges for each account.
1) R-ACE
Account activation charges Rs 299
Minimum Margin of Rs 5000 required
2) R-ACE Lite
Account activation charges Rs 499
Minimum Margin of Rs 5000 required

3) R-ACE Pro
Account activation charges Rs 999
Minimum Margin of Rs 10000 required
*** All the account comes with Free Annual maintenance charges
*** All account comes with DP account

Brokerage at Religare
On the basis of volume and frequency of trading, Religare provide different options for
brokerages. On the broader way they divided into three categories:
1) Classic Account
Intraday brokerage varies from 0.3% to 0.5%.
Delivery brokerage varies from 0.3% to 0.50%.
Derivatives brokerage varies from 0.3% to 0.5%.

2) Freedom Account
In this payment scheme, investor has to pay a fix amount in advance for Monthly
(Rs500), Quarterly (Rs 1400), Half-yearly (Rs 2500) or annual subscription (Rs 4000).
This onetime payment enable account holder to trade for Rs 3, 00,000 intraday and
derivatives trading and Rs 40,000 of delivery based trading for zero brokerage.
3) Trump Account
1) Trump account has two payment options, Trump Plus and Trump Super plan:
2) Trump Plus has annual subscription fees of Rs 2500, Brokerage on Delivery Trades
of 0.25% and Brokerage on Intraday Trades and F&O Trades of 0.025%.
3) Trump Super has annual subscription fees of Rs 15,000, Brokerage on Delivery
Trades of 0.15% and Brokerage on Intraday Trades & F&O Trades of 0.015%.

Advantages of Religare
1) Religare gives interest on unutilized cash when investor is waiting to make next trade or
online investment.
2) Religare Allow their investor to trade without having to worry about cash margin.
Investor can get exposure (on cash segment) as high as 20 times for intraday trades.
3) They provide intraday reports and historical charting.
4) Lifetime free DP account.
5) Varity of fee structure to fulfill need of different type of investors.

Brokerage and Fees;
Account opening fees: Rs 500
A trading account in Kotak requires you to have a minimum of Rs 1000 to start with, the bank
account to have a minimum of Rs 2500.
Brokerage: For Intraday trading, kotak brokerage is around 0.05%.
For delivery trading, Kotak brokerage is around 0.45%.
Advantages of Kotak Securities Limited
1) Kotak provides a Call & Trade facility to its customer wherein they can place and track
their orders through phone when they are away home.
2) They provide daily SMS alerts, market pointers, periodical research reports, stock
recommendations etc.
3) Kotak provides exclusive online tool to monitor what is happening in the market and also
investor can view gains/ losses in real time.

Disadvantages of Kotak Securities Limited
1) In online trading sometimes delay comes. So it can be frustrating.


Comparative Chart
Company Account

Intra Day
Online Trading
ICICI Direct 750 0.85 0.15 - Yes
ShareKhan 100 0.50 0.10 - Yes
HDFC 799 0.50 0.10 2500 Yes
Angel Broking 775 0.50 0.05 - Yes
Religare 299 0.50 0.05 5000 Yes
Kotak 500 0.45 0.05 1000 Yes
M. M. S. P. L. 888 0.50 0.10 1000 Yes
India Bulls 1200 0.50 0.10 - Yes

Things to do before opening Online Share Trading Account
1) Ask for Demo: Contact the broker who provides online trading service and ask him to
give you a demo of the product.
2) Check if the broker trades in multiple stock exchanges. Usually most of the online trading
websites trade in NSE and BSE in India.
3) Check the integration of Brokerage account, Demat account and Bank account.
4) Compare brokerages with other peer companies.


Chapter 7: FINDINGS
In order to increase the sales figures, the company has somewhere ignored the service
delivery and left the customer on his own.
Although majority of customers of the entire firms feel that brokerage charged is neither
high nor low, customers of Far Sight Securities Pvt. Ltd are highly satisfied. On the other
hand, customers of ICICI are most dissatisfied. And about 45% of customers of
indiabulls consider it to be NHNL, and another 30% rate it as good, while 25% feel that it
is not quite low
Customers feedback regarding the Research Tips parameter shows that the competition
is primarily between three firms- Indiabulls, icici and Indiainfoline.
Approx. 19% respondents have de-mat & trading account because min. annual
maintenance and other charges
On the basis of call and trade facility, there is again not much differences. Comparison
among ICICI and indiabulls shows that icici has less no. of customers who rated it low as
compared to indiabulls and also higher no. of customers rate it good, but indiabulls has
the edge over the rest when it comes to customers who rate it very high.
Majority of clients of indiabulls feels that the exposure provided by them is neither high
nor low, while some believe it is enough. But in ICICI it is contrary. Far Sight Securities
Pvt. Ltd gets positive response from majority of clients
As per charges, comparison among the firms clearly points out that there is not much
difference among the firms. First is Far Sight Securities Pvt. Ltd, followed by indiabulls.
Though Far Sight Securities Pvt. Ltd is working very hard in order to meet the
competition but there is a gap between the expectations and the experiences of the
customers which is widening regularly. This gap has emerged because of the sales
oriented focus of reliance money.


The main objective of a company, the scheme aims to give a monthly return to the investors
after deducting expenses etc.

It aims to give a monthly return to the investors after deducting expenses etc.

Exposure universe would be the F and O segment.
Fixed - Flat 1% for completed 12 months or part thereof. Charged as 0.35% for
first and second month
Transparency will be maintained by mailing Portfolio position to the client
every weekend.
For portfolio of above Rs 300 lacks, transactions would be mailed daily on the
next day.



We worked with FarSight Securities Pvt. Ltd. with a profile of Study of Demat and Equity. This
profile offers me to understand the need of customer and provide them the best deal possible
with maximization of the profit, both for the company as well as for the customer.
The most important aspect for the role of trainee is trust. So far fulfilment of the targets that is
bringing the maximum accounts along with min Rs.5000 as margin amount one needs to:
Generating new leads through various activities.

Generation of leads
Since we were new in the field so we had to start from scratch and generate new leads to sustain
in the market. Calling the people is one of the trusted ways of getting to the customers without
meeting them. Although the rate of conversion remained very less, for calling the understanding
the need remains a very important criterion. This activity gives me mixed result. I often got
success and generated many leads through it but it also landed me in awkward position where the
customer were in different mood and made us hear words for which a marketer should be always
prepared to hear. Corporate calls always remained more difficult to crack with respect to retail
The corporate were the most difficult and most temping to get the business from. It took us one
day to crack Hi-tech Gears.
At FarSight Securities Pvt. Ltd. after getting the product knowledge in the first week at the head
office we was also allotted distributor to work with. We were allotted with a manager whom we
have to report daily. I became known to the market and procedure we started calling more


1. Cold Calling
Voice plays a major role.
The right time to call a customer cannot be decided, as the customer may
in a different mood at the time of calling.
Time consuming
Less success rate

2. Corporate
Time consuming
Contacts with higher authorities play a major role
Fear of meeting with big shots people

3. Phone calls
People are often busy
Refused to talk
Not interested in share market
Accounts with other companies
Non Availability of database


Description of live experience
I had got my first client from Matunga which I had got the reference from
that is of Mr. Sagar he wanted to trade in share market he gave the appointment after two days on
Friday as he was a real estate agent. After visiting on the day he had called me, I explained him
every aspect about the product and the charges of opening an account and the documents
required and benefits of opening an account with Far SightSecurities Pvt. Ltd. Then he told me to
provide some tips on NIFTY CASH and MINI NIFTY CASH for 15 continuous days, if that
clicks he will be ready to open an account in our company. At last, he agreed to open an account
with Far Sight Securities Pvt. Ltd. He provided with required documents i.e.
Two pass port size photographs
Pan card Xerox duly signed by client
Ration side Xerox front and reverse side front
Cheque of ICICI bank of Rs. 25000 initially and account opening charges free
He signed on the form on the required places which was nearly 55 signatures
I filled his remaining form
Submitted his form along with required documents
After 4-5days his account was activated
He got an SMS of account activation
He has also been provided with welcome kit as well and also with alphanumeric 6 digit client
Code and a personalized relationship manager. After that he started trading


I got my Second client from a friends friend, I called a friend to inform about the product but he
was not that interested but he gave reference of one of his friend who was interested in trading. I
took his contact number and called him. It was decided that we would meet at his place the next
day by 12 pm. I took his address and reached there the next day to complete the paper work and
give him an overview about the product. He was satisfied with the details provided by me and
agreed to open an account with Far Sight Securities Pvt. Ltd. with margin money of Rs. 5000.
He signed on all the important places and gave the necessary documents and the cheques for
opening the account. I submitted the form in the office and after the form was processed the
account was activated within 5 working days and sms intimation was forwarded to the client for
the same. He then started trading in the market

I have got my first lead from one of the person which I have got a lead from
that is of Mr. Sumeet Bhansali he wanted to trade in share market he gave the appointment of
after a week on weekends as he was a busy man He resides in Bhayandar West only. After
visiting on the day he gave me, I explain him the product and the charges of opening an account
and the documents required and benefits of opening an account with Far Sight Securities Pvt.
Ltd. He agreed to open an account with Far Sight Securities Pvt. Ltd. He provided with required
documents i.e.
Two pass port size photographs
Pan card Xerox duly signed by client
Ration side Xerox front and reverse side front
Check of ICICI bank of Rs.5888
He signed on the form on the required places which was nearly 55 signatures
I filled his remaining form
Submitted his form along with required documents
After 4-5days his account was activated
He got an SMS of account activation

He has also been provided with welcome kit as well and also with alphanumeric 6 digit client
Code and a personalized relationship manager. After that he started trading
I had got my third client from andheri which I had got the reference from that
is of Mr. Vinod he wanted to trade in share market he gave the appointment after three days as he
was busy. After visiting on the day he had called me, I explained him every aspect about the
product and the charges of opening an account and the documents required and benefits of
opening an account withFar Sight Securities Pvt.Ltd. Then he told me to provide some tips for 5
continuous days, if that clicks he will be ready to open an account in our company. At last, he
agreed to open an account with Far Sight Securities Pvt.Ltd. He provided with required
documents i.e.
Two pass port size photographs
Pan card Xerox duly signed by client
Ration side Xerox front and reverse side front
Check of Axis bank of Rs.5888
He signed on the form on the required places which was nearly 55 signatures
I filled his remaining form
Submitted his form along with required documents
After 4-5days his account was activated
He got an SMS of account activation
He has also been provided with welcome kit as well and also with alphanumeric 6 digit client
Code and a personalized relationship manager. After that he started trading

Opening a Demat account Far Sight Securities Pvt Ltd is better than opening with any
other broking house as it provides the best services in the industry.
Far Sight Securities Pvt Ltd helps to get good return on investment. A good brand is
always welcomed as people are aware of quality so they are ready to spend few extra
bucks for it.
Lastly we can conclude by saying that Far Sight Securities Pvt.Ltd is still in its
growing stage in India.
The brokerage charged is negotiable according to the volume of transactions.
It provide a security from others and transparency from clients. It also provides day to
day tips to their clients which could help their clients in trading.
The company also helps us to know more about equity trading in practical.
The expectations of the customers are regularly increasing because of the increasing
competition and emergence of global market. In such conditions it becomes very
necessary for a company to fulfill all the expectations of the customers and give them a
delightful experience.



There are some recommendations as follows:
Create company awareness by advertisement.
Introduce new plan for Heavy and Medium traders.
Reducing the account opening charges.
Create awareness for online trading system.
Provide online trading system demonstration.
Provide trading tips to new customers.
Introducing commodity trading system

Build relationship with the customers to keep them
Company should start a system of filling up of feedbacks
and complaints online so that rectification of errors can be
done easily.
Company should start a kind of soft skill training program
for all of its distributors so that the customers feel the same
level of satisfaction as they feel while transacting with the
Though the service quality is good but it should become
better consistently as good service and better relationships
are the key success factors of current market situations.
The process of documentation is a hassle for customers as it
is not at all user friendly. Company should take care of user
friendliness of the system.

In order to fill the gap between actual and expected,
company needs to customize its services as it is dealing into
financial instruments.
These financial instruments are risky and it is very essential
to make the customer feel that you are taking care of his
This can be done only if all the services are customized and
the system is made transparent for the customer as well as
for the employees.

Sight Securities Ltd is providing daily updates about the
stocks information.
Investors are looking for those investment options where
they get maximum returns with less costs.
Market is becoming complex & it means that the individual
investor will not have the time to play stock game on his
People are less aware about the Services provided by Far
Sight Securities Ltd


Chapter 10: APPENDIX


Name: ________________________________________________________
Address: ________________________________________________________
Contact no.:________________________________________________________
E-mail ID: ________________________________________________________
- Finance
- Medical
- Legal
- Engineering
- Other
- Government
- Non Government
Home maker


1) Do you know about Investment options available?
a) Yes b) No
2)In which of these Financial Instruments do you invest
a)Shares b) Bonds c)
Commodity market
d) Insurance e) Mutual Funds f) Banks
g) Real Estate i) Others
3) What is the basic purpose of your investment?
a) Liquidity b) Returns
c) Capital appreciation d) Risk covering
e) Tax benefits
4) From which option you will get the best returns?
a)Shares b) Bonds c)
Commodity market
d) Insurance e) Mutual Funds f) Banks
g) Real Estate i) Others
5) What are the most important things you take into
account, while making any investment?
a) Risk b) Returns c) Both
6) Do you have any knowledge of share markets?
a) Partial b) Complete c) Nil
7) If you invested in Share Market, what has been your
a) Satisfactory returns received b) Burned
c) Unsatisfactory results d) No

8) Are you aware of online Share trading?

a)Yes b) No
9) Heard about Reliance money?
a)Yes b) No
10) Do you know about the facilities provided by Reliance
a)Yes b) No
11) Do you have any D-mat & Trading account?
a)Yes b) No
12) In which company you have D-mat & Trading account?
a) Far Sight Securities Ltd d)
b) Indiainfoline e) ICICI direct
c) India bulls f) HDFC
13) What differentiates your Share trading company from
a) Brokerage b) Operating
c) Services d) Products
e) Software
14) Which Share trading company provides good
exposure? very high high medium low very low
Far Sight Securities Ltd
ICICI direct
India bulls
HDFC securities

15) Which Share trading company provides its Software to
57 very high high medium low very low
Far Sight Securities Ltd
ICICI direct
India bulls
HDFC securities


16) Which Share trading company charges fair Brokerage? very high high medium low very low
Far Sight Securities Ltd
ICICI direct
India bulls
HDFC securities

17) Which Share trading company provides fair operating
expenses? very high high medium low very low
Far Sight Securities Ltd
ICICI direct
India bulls
HDFC securities

18) Are you satisfied with your present Share trading
a) Satisfied b) Neutral c)
Unsatisfied satisfied neutral unsatisfied
Far Sight Securities Ltd
ICICI direct
India bulls
HDFC securities


Appendix II
Who can join BSE Institute Ltd. Program?
Candidates who have passed 12th standard in any stream are eligible. Candidates
are expected to be numerate and comfortable with written and spoken English.

However, for CPCM (Certificate Program on Capital Markets), candidates should
be graduate in any stream.

I am a beginner. I want to know about the stock market. Which training
program should I attend?
BSE Basic Course on Stock Market. It is a 4-day course, providing a
comprehensive overview of the stock market. For full details of this Course,


Do you have any diploma course or long duration certification program that
will add value to my resume?
CPCM (Certificate Program on Capital Markets) is a course that is offered jointly
by BSE, JBMIS and Mumbai University. It is a very highly valued and reputed

Is there any deadline for registration/enrollment for various BSE Institute
Ltd. program?
Admissions are on first-come-first-serve basis.

What is the fees for the program?
To get details of the fee structure of the various BSE Institute Ltd. program

What is the payment mode?
Payment is to be made by Demand Draft in favour of 'BSE Institute Limited',
payable at Mumbai. Cheques are not accepted, except from Member-brokers.

What are the timings for registration/fee payment?
Timing for cash payment: 10.30 am to 2.30 pm
Timing for payment through Demand Drafts/Member-Broker's cheques: 10.30 am
to 5.30 pm

Where should one pay the fees?
Fees should be paid at the following address:
BSE Institute Ltd.

BSE Limited
P. J. Towers, 18th Floor
Dalal Street
Mumbai - 400001


What is the duration of the various training programs?
The duration of our various training programs is as follows:
Advanced Program on Derivatives 2 days
BSE Basic Course on Stock Market (BBCSM) 4 days
Basic Program on Derivatives 2 days
BOLT Trading Operations 1 day
Bond Analysis 4 days
Basic Program on Commodity & Commodity
2 days
Certificate Program on Capital Market (CPCM) 3 months, Part-time
Compliance in Corporate Governance 1 day
Compliance Requirements for Member-Brokers 1/2 day
Comprehensive Program on Technical Analysis 6 weeks, Part- time
Corporate Governance 2 days

Cross Currency Rupee Options 1 day
Debt Markets 2 days
BSE Certificate Course on Dematerialisation &
Depository Operations (BCCD)
4 days
Derivatives (in Gujarati) 1/2 day
Equity Portfolio Structuring & Stock Analysis 1 day
Investing in Exchange Traded Funds 1 day
Finance for Non-Finance Executives 2 days
Foreign Exchange Risk Management 2 days
Fundamentals Analysis 2 days
Foreign Investments in India & Abroad 1 day
Investing with Masters
IPOs : Procedures & Processes 2 days
Mergers & Acquisitions 2 days

Mutual Funds 2 days
Technical Analysis 2 days
Valuation of Shares 2 days
Venture Capital & Private Equity Finance 2 days
Risk Management, Financial Engineering and Value
3 days

What are the timings of your programs?
Full-time courses: 10.00 am to 5.30 pm
Part-time courses: 6.00 pm to 8.00 pm

Do you have any online programs?
At present, there are no online program. However, we are in the process of
launching some in the near future



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