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Capital Market Project in India Bulls
Capital Market Project in India Bulls
INTRODUCTION
A mechanism that allows trade is called a market. The original form of trade was
barter, the direct exchange of goods and services. Modern traders instead, generally negotiate
through a medium of exchange, such as money. As a result, buying can be separated from
selling, or earning. The invention of money (and later credit, paper money and non-physical
money) greatly simplified and promoted trade. Trade between two traders is called bilateral
trade, while trade between more than two traders is called multilateral trade. Trade exists for
many reasons. Due to specialization and division of labor, most people concentrate on a
small aspect of production, trading for other products. Trade exists between regions because
different regions have a comparative advantage in the production of some tradable
commodity, or because different regions' size allows for the benefits of mass production. As
such, trade at market prices between locations benefits both locations. Trading can also refer
to the action performed by traders and other market agents in the financial markets.
The only stock exchange operating in the 19th century were those of Bombay set up
in 1875 and Ahmedabad set up in 1894 these were organized as voluntary non-profit making
organization of brokers to regulate and protect interest. Before the control insecurities trading
became a central subject under the constitution in 1950, it was a state subject and the
Bombay securities contract (CONTROL) Act of 1952 used to regulate trade in securities.
Under this act, the Bombay stock exchange in 1927 and Ahmedabad in 1937.During the war
boom, a number of stock exchanges were organized in Bombay, Ahmedabad and other
centers, but they were not recognized. Soon after it became a central subject, central
legislation was proposed and a committee headed by A.D. Gorwala went in to the bill for
securities regulation. On the basis of committees recommendations and public discussions
the securities contracts (regulations) Act became law in 1956.
METHODOLOGY
PRIMARY SOURCE
Gathered information by interacting with B. Satish Kumar (Associate Vice President),
INDIABULLS SECURITIES LIMITED, Secunderabad.
SECONDARY SOURCE:
I referred EQUITY related articles from various magazines, newspapers and journals.
Material provided by INDIABULLS SECURITIES
Browsing the concerned sites.
The collected data was analyzed by using graphs relative rating methods.
We did a sample survey for to find how many people aware of equity and how many people
invested in equity market.
CHAPTER-2
REVIEW OF LITERATURE
F IN A N C IA L M A R K E T S :
DEFINITION:
THE TERM FINANCIAL MARKETS CAN BE A CAUSE OF MUCH CONFUSION. FINANCIAL
1. Organizations that facilitate the trade in financial products. i.e. Stock exchanges facilitate
the trade in stocks, bonds and warrants.
2. The coming together of buyers and sellers to trade financial products. i.e. stocks and shares
are traded between buyers and sellers in a number of ways including: The use of stock
exchanges; directly between buyers and sellers etc. In academia, students of finance will use
both meanings but students of economics will only use the second meaning. Financial markets
can be domestic or they can be international.
Capital market
The capital market is the market for securities, where companies and the government can
raise long-term funds. The capital market includes the stock market and the bond market.
Financial regulators, such as the U.S. Securities and Exchange Commission, oversee the
capital markets in their designated countries to ensure that investors are protected against
fraud. The capital markets consist of the primary market, where new issues are distributed to
investors, and the secondary market, where existing securities are traded.
The capital markets consist of primary markets and secondary markets. Newly formed
(issued) securities are bought or sold in primary markets. Secondary markets allow investors
to sell securities that they hold or buy existing securities.
SHARE
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What is share?
In finance a share is a unit of account for various financial instruments including stocks,
mutual funds, limited partnerships, and REITs. In British English, the usage of the word
share alone to refer solely to stocks is so common that it almost replaces the word stock itself
.In simple Words, a share or stock is a document issued by a company, which entitles its
holder to be one of the owners of the company. A share is issued by a company or can be
purchased from the stock market. By owning a share you can earn a portion and selling
shares you get capital gain. So, your return is the dividend plus the capital gain. However,
you also run a risk of making a capital loss if you have sold the share at a price below your
buying price.
A company's stock price reflects what investors think about the stock, not necessarily what the
company is "worth." For example, companies that are growing quickly often trade at a higher price
than the company might currently be "worth." Stock prices are also affected by all forms of company
and market news. Publicly traded companies are required to report quarterly on their financial status
and earnings. Market forces and general investor opinions can also affect share price.
Types of Shares:
1. Equity Shares: An equity share, commonly referred to as ordinary share, represents the
form of fractional ownership in a business venture.
What is an Equity/Share?
Total equity capital of a company is divided into equal units of Small denominations, each
called a share. For example, in a company the total equity capital of Rs 2,00,00,000 is
divided into 20,00,000 units of Rs 10 each. Each such unit of Rs 10 is called a Share. Thus,
the company then is said to have 20,00,000 equity shares of Rs 10 each. The holders of such
shares are members of the company and have voting rights.
3. Bonus Shares:
Shares issued by the companies to their shareholders free of cost based on the number of
shares the shareholder owns.
4.Preference shares:
Owners of these kind of shares are entitled to a fixed dividend or dividend calculated at a
fixed rate to be paid regularly before dividend can be paid in respect of equity share. They
also enjoy priority over the equity shareholders in payment of surplus. But in the event of
liquidation,
their
claims
rank
below
the
claims
of
the
companys creditors,
7. Bond:
Bond is a negotiable certificate evidencing indebtedness. It is normally unsecured. A debt
security is generally issued by a company, municipality or government agency. A bond
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investor lends money to the issuer and in exchange, the issuer promises to repay the loan
amount on a specified maturity date. The issuer usually pays the bond holder periodic
interest payments over the life of the loan. The various types of Bonds are as Follows:
Zero Coupon Bond:
Bond issued at a discount and repaid at a face value. No periodic interest is paid. The
difference between the issue price and redemption price represents the return to the holder.
The buyer of these bonds receives only one payment, at the maturity of the bond.
Convertible Bond:
A bond giving the investor the option to convert the bond in to equity at a fixed conversion
price.
Treasury Bills:
Short-term (up to one year) bearer discount security issued by government as a means of
financing their cash requirements.
Dividends
If you've ever owned stocks or held certain other types of investments, you might already be
familiar with the concept of dividends. Even those people who have made investments that
paid dividends may still be a little confused as to exactly what dividends are, however
after all, just because a person has received a dividend payment doesn't mean that they fully
appreciate where the payment is coming from and what its purpose is. If you have ever found
yourself wondering exactly what dividends are and why they're issued, then the information
below might just be what you've been looking for.
DEBT INSTRUMENT
What is a Debt Instrument?
Debt instrument represents a contract whereby one party lends money to another on predetermined terms with regards to rate and periodicity of interest, repayment of principal
amount by the borrower to the lender. In the Indian securities markets, the term bond is
used for debt instruments issued by the Central and State governments and public sector
organizations and the term debenture is used for instruments issued by private corporate
Maturity:
Maturity of a bond refers to the date, on which the Bond matures, which is the date on
which the borrower has agreed to repay the principal. Term-to-Maturity refers to the number
of years remaining for the bond to mature. The Term-to-Maturity changes everyday, from
date of issue of the bond until its maturity. The term to maturity of a bond can be calculated
on any date, as the distance between such a date and the date of maturity. It is also called the
term or the tenure of the bond.
Coupon:
Coupon refers to the periodic interest payments that are made by the borrower (who is also
the issuer of the bond) to the lender (the subscriber of the bond). Coupon rate is the rate at
which interest is paid, and is usually represented as a percentage of the par value of a bond.
Principal:
Principal is the amount that has been borrowed, and is also called the par value or face value
of the bond. The coupon is the product of the principal and the coupon rate. The name of the
bond itself conveys the key features of a bond. For example, GS CG2008 11.40% bond
refers to a Central Government bond maturing in the year 2008 and paying a
coupon of
11.40%. Since Central Government bonds have a face value of Rs.100 and normally pay
coupon semi-annually, this bond will pay Rs. 5.70 as six- monthly coupon, until maturity.
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You may subscribe to issues made by the government corporates in the primary market.
Alternatively ,you may purchase the same from the secondary market through the stock
exchanges.
DERIVATIVE
What is a Derivative?
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. Derivative products initially emerged as hedging devices
against fluctuations in commodity prices and commodity-linked derivatives remained the
sole form such products for almost three hundred years. The financial derivatives came into
spotlight in post-1970 period due to growing instability in the financial markets. However,
since their emergence, these products have become very popular and by 1990s, they
accounted for about two thirds of total transactions in derivative products.
A forward contract is a customized contract between two entities, where settlement takes
place on a specific date in the future at todays pre-agreed price.
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.
Options:
An Option is a contract which gives the right, but not an obligation, to buy or sell the
underlying at a stated date and at a stated price.
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Calls give the buyer the right but not the obligation to buy a given quantity of the
Warrants:
Options generally have lives of up to one year. The majority of options traded on exchanges
have maximum maturity of nine months. Longer dated options are called Warrants and are
generally traded over-the counter.
allowed for futures trading under the auspices of the commodity exchanges recognized under
the FCRA.
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by a Mutual Fund in its prospectus are binding on the Mutual Fund scheme. The investment
objectives specify the class of securities a Mutual Fund can invest in. Mutual Funds invest in
various asset classes like equity, bonds, debentures, commercial paper and government
securities.
SECURITIES
What is meant by Securities?
The definition of Securities as per the Securities Contracts Regulation Act (SCRA), 1956,
includes instruments such as shares, bonds, scrips, stocks or other marketable securities of
similar nature in or of any incorporate company or body corporate, government securities,
derivatives of securities, units of collective investment scheme, interest and rights in
securities, security receipt or any other instruments so declared by the Central Government.
INDEX
What is an Index?
An Index shows how a specified portfolio of share prices are moving in order to give an
indication of market trends. It is a basket of securities and the average price movement of the
basket of securities indicates the index movement, whether upwards or downwards. An index
is a number used to represent the changes in a set of values between a base time period and
another time period. A stock index is a number that helps measure the levels of the market.
Return on the index are expected to represent return that an investor can get if he has the
portfolio representing the entire market .various indices are computed for use by the
investors. Market indices have always been of great important in the world of security
analysis and portfolio management. People from all walks of life are affected by market
indexes. Economists, technicians and statisticians use stock marker indexes to study long
term growth patterns on the economy, to forecast business cycle patterns Investors use the
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market index as a bench mark against which to evaluate the performance of the it own or
institutional portfolios. Technical analysts, base their decision to buy and sell on tha pattern
that appears in tha time series of the market indexes. Market indexes are also used as
economics indicators. The various indexes that are complied in the Indian markets
are:
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It is a well diversified 50 stock index accounting for 25 sectors of the economy. It has 1995
as the base year. Unlike other indices, the base value is fixed at 1000.
E) RBI Index:
The RBI complied security indices form 1949 onwards. These were classified under the
following heads:
1 Govt. and semi-Govt. securities
2 Debentures of companies.
3 Equity shares of companies
DEMAT ACCOUNT
What's a demat account?
Demat refers to a dematerialized account. Just as you have to open an account with a bank if
you want to save your money, make cheque payments etc, you need to open a demat account
if you want to buy or sell stocks. So it is just like a bank account where actual money is
replaced by shares. You have to approach the DPs (remember, they are like bank branches),
to open your demat account. Let's say your portfolio of shares looks like this: 40 of Infosys,
25 of Wipro, 45 of HLL and 100 of ACC. All these will show in your demat account. So you
don't have to possess any physical certificates showing that you own these shares. They are
all held electronically in your account. As you buy and sell the shares, they are adjusted in
your account.
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What is Dematerialization?
Dematerialization is the process by which physical certificates of an investor are converted
to an equivalent number of securities in electronic form and credited to the investors
account with his Depository Participant (DP).
DEPOSITORY
What is a Depository?
A depository is like a bank wherein the deposits are securities (viz. shares, debentures,
bonds, government securities, units etc.) in electronic form. A depository is an organization
where the securities of a shareholder are held in the electronic from though the medium of a
depository participant The function of a depository are similar to that of a bank. If an
investor desires to utilize the services of a depository the investor has to open an account
with the depository through a depository participant. A Depository participant is the
reprehensive (agent) in the depository system. The D.P will maintain the securities account
balances and intimate to the Holder about their holdings form time to time. SEBI has
permitted banks, financial institutions, custodies, stock brokers, etc, to become participants
in the depository. The main objective of a depository is to minimize the paper works
involved with the ownership, trading and transfer of securities. If an investor intends to get
back his securities in the physical form he can do so by requesting the Depository
participant. This is known as Dematerialization.
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depositories in India -- the National Securities Depository Ltd (NSDL) and the Central
Depository Services Ltd (CDSL). There are over a 100 DPs.
Where do I begin?
Look for a DP to have an account with Most banks are also DP participants, as are
many brokers. You can choose your very own DP.
To get a list, visit the NSDL and CDSL websites and see who the registered DPs are.
A broker is separate from a DP. A broker is a member of the stock exchange, who buys and
sells shares on his behalf and on behalf of his clients. A DP will just give you an account to
hold those shares. You do not have to take the same DP that your broker takes. You can
choose your own. But many brokers offer special incentives in the form of lower charges for
opening demat accounts with their DPs.
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Once you approach your DP, you will be guided through the formalities of opening an
account. You must fill up an account opening form and sign an agreement with your DP.
The DP will ask for some documents as proof of your identity and address. Check with them
what they require. For instance, some may accept a driver's license, others may not. Here is a
broad list (you won't need all of them though)
PAN card
Voter's ID
Passport
Ration card
Driver's license
Photo credit card
Employee ID card
Bank attestation
IT returns
Electricity/ Landline phone bill
While they only ask for photocopies of the documents, they will need the originals for
verification. You will have to submit a passport size photograph on which you sign across.
How many shares you need to have to open an account When opening an account
with a bank, you need a minimum balance.
Not so with a demat account. A demat account can be opened with no balance of shares. And
there is no minimum balance to be maintained either. You can have a zero balance in your
account.
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What will it cost? The charges for account opening, annual account maintenance
fees and transaction charges vary between DPs. To get a comparative idea, visit the
websites of NSDL and CDSL.
Can I nominate? Sure. You can nominate whoever you like by filling up the
nomination details in the account opening form. This is to enable the nominee to
receive the securities after the death of the holder of the demat account.
STOCK MARKET
A stock market is a private or public market for the trading of company stock and derivatives
of company stock at an agreed price; both of these are securities listed on a stock exchange
as well as those only traded privately.
Stock market is also referred to as the Corporate Debt or Capital Market. While the money
market, which deals with short-term financial needs of business and industry, is restricted to
funds needed for a period of one year or less, instruments of the debt/capital markets are
raised for medium or long term needs. Indian Stock Market consists of three distinct
segments:
1. The Public Debt Market i.e. the market for Government securities, (also called Giltedged Market). These are interest bearing and dated securities. This market is
regulated by RBI, the Central Bank and Banker to the Government.
2. PSU Bonds Market i.e. Bonds floated by public Sector units, Nationalized banks and
financial Institutions for raising Tier-II capital and also debentures floated by
Corporates. This is represented as the Corporate Debt Market.
3. The Equity Market for raising of equity or preference share capital by all corporates.
Money invested in company shares is not refundable, but if the shares are listed in a
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stock exchange these can be sold or purchased, thus providing liquidity to such
investments. Shares do not carry interest, but shareholders can participate in sharing
the profits of the corporate body declared by way of Dividends, bonus shares etc.
While the hope of receiving attractive dividends motivates the public to subscribe to
the share capital, declaring dividend is not a legal obligation on the part of the
Companies, and hence not a right on the part of the shareholders. But shareholders
enjoy various other rights as conferred by the Indian Companies Act, 1956. Indian
Public companies generally follow the objective of increasing shareholders wealth as
the prime goal of financial management
At this context it is relevant to mention about two categories of stock market, i.e.
Primary Market covering new public issues of all categories of securities, including
G-sec, bonds and equity/preference capital.
Secondary market, which deals with already issued securities of all types.
Transactions of the secondary market are carried out through one of the authorized
stocks exchanges, where the traded security is listed.
The expression 'stock market' refers to the system 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 the bond market. Commodities are traded in
commodities markets, and derivatives are traded in a variety of markets
Trading
Participants in the stock market range from small individual stock 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 However, buyers and sellers are electronically matched. One or more
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NASDAQ market makers will always provide a bid and ask price at which they will always
purchase or sell 'their' stock. The Paris Bourse, now part of Euronext, is an order-driven,
electronic stock exchange. It was automated in the late 1980s. Prior to the 1980s, it consisted
of an open outcry exchange. Stockbrokers met on the trading floor or the Palais Brongniart.
In 1986, the CATS trading system was introduced, and the order matching process was fully
automated.From time to time, active trading (especially in large blocks of securities) have
moved away from the 'active' exchanges. Securities firms, led by UBS AG, Goldman Sachs
Group Inc. and Credit Suisse Group, already steer 12 percent of U.S. security trades away
from the exchanges to their internal systems. That share probably will increase to 18 percent
by 2010 as more investment banks bypass the NYSE and NASDAQ and pair buyers and
sellers of securities themselves, according to data compiled by Boston-based Aite Group
LLC, a brokerage-industry consultant
Market participants
Many years ago, worldwide, buyers and sellers were individual investors, such as wealthy
businessmen, with long family histories (and emotional ties) to particular corporations. Over
time, markets have become more "institutionalized"; buyers and sellers are largely
institutions (e.g., pension funds, insurance companies, mutual funds, hedge funds, investor
groups, and banks). The rise of the institutional investor has brought with it some
improvements in market operations. Thus, the government was responsible for "fixed" (and
exorbitant) fees being markedly reduced for the 'small' investor.
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number of individuals to productive channel to meet the demands of capital for Industry,
trade and business. The financial/security market intermediaries serve as the link between
capital providers and capital seekers.
The individual savers are not organised. They can invest if they could secure the trust and
confidence that the funds invested would be prudently employed and they could confidently
expect to get a fair return/reward on their hard-earned savings. This is the function of
organised capital market to regulate market forces to ensure fair dealings, to motivate
savings on the part of the investors and to secure smooth flow of savings/capital from
investors to capital seekers for productive needs. This supervisory and regulatory function is
performed by SEBI, the market regulator and market developer
The capital market consists of the following components:
The scattered investors, who are regular savers and the purveyors of capital needed by
business and industry. Inter-se they are not organised.
The Corporate and Business houses who are the users or seekers of this capital, who
are mutually better organised.
The Financial Intermediaries who link the investors and the capital seekers/users, who
are professionals.
SEBI, the market developer and market regulator (the apex organization).
The Corporate Sector draws its capital requirements from the following sources:
Promoters Contribution;
Equity Capital raised from the shareholders (generally referred to as equity capital);
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Stock market is also referred to as the Corporate Debt or Capital Market. While the money
market, which deals with short-term financial needs of business and industry is restricted to
funds needed for a period of one year or less, instruments of the debt/capital markets are
raised for medium or long term needs. Indian Stock Market consists of three distinct
segments:
The Public Debt Market i.e. the market for Government securities (also called Giltedged Market). These are interest bearing and dated securities. This market is
regulated by RBI, the Central Bank of the country and banker to the Government.
PSU Bonds Market i.e. Bonds floated by public Sector units, nationalized banks and
financial Institutions for raising Tier-II capital and also debentures floated by
corporates. This is represented as the Corporate Debt Market.
The Equity Market for raising of equity or preference share capital by all corporates.
Money invested in company shares is not refundable, but if the shares are listed in a
stock exchange these can be sold or purchased, thus providing liquidity to such
investments. Shares do not carry interest, but shareholders can participate in sharing
the profits of the corporate body declared by way of dividends, bonus shares etc.
While the hope of receiving attractive dividends motivates the public to subscribe to
the share capital, declaring dividend is not a legal obligation on the part of the
companies, and hence not a right on the part of the shareholders. But shareholders
enjoy various other rights as conferred by the Indian Companies Act, 1956. Indian
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Primary market covering new public issues of all categories of securities, including
G-sec, bonds and equity/preference capital.
Secondary market, which deals with already issued securities of all types.
Transactions of the secondary market are carried out through one of the authorized
stock exchanges, where the traded security is listed.
The organised and regulated capital market motivates individual to save and invest
funds. The availability of safe and profitable sources of investment is an essential
criterion to create propensity to save and invest on the part of the earning public;
It provides for the investors a safe and productive channel for investment of savings
and secures the recurring benefit of return thereon, as long as the savings are retained;
It thus mobilizes savings of large number of individuals, families and associations and
makes the same available for meeting the large capital needs of organised industry,
trade and business and for progress and development of the country as a whole and its
economy.
To discharge these functions, the organised capital market accepts a dual responsibility
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To regulate the players in the market vis-a-vis the investor and to enforce market
discipline, through market regulators and registered intermediaries. Such that the
unorganised small man is able to deal safely and conveniently through these
regulatory bodies and the intermediaries, and need not
necessarily has to come into direct contact with the ultimate seekers of his savings.
To understand the regulatory and control systems in-built in the market, we must study the
structural framework of the capital market. The capital market consists of the following
segments.
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new issue are collected at specific branches of one or more collecting banks prescribed span
of time, represented by the dates of opening of the issue and closing of the issue.
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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.
Procedure
IPOs generally involve one or more investment banks as "underwriters." The company
offering its shares, called the "issuer," enters a contract with a lead underwriter to sell its
shares to the public. The underwriter then approaches investors with offers to sell these
shares.
The sale (that is, the allocation and pricing) of shares in an IPO may take several forms.
Common methods include:
Dutch auction
Firm commitment
Best efforts
Bought deal
A large IPO is usually underwritten by a "syndicate" of investment banks led by one or more
major investment banks (lead underwriter). Upon selling the shares, the underwriters keep a
commission based on a percentage of the value of the shares sold. Usually, the lead
underwriters, i.e. the underwriters selling the largest proportions of the IPO, take the highest
commissionsup to 8% in some cases.
Multinational IPOs may have as many as three syndicates to deal with differing legal
requirements in both the issuer's domestic market and other regions. For example, an issuer
based in the E.U. may be represented by the main selling syndicate in its domestic market,
Europe, in addition to separate syndicates or selling groups for US/Canada and for Asia.
Usually, the lead underwriter in the main selling group is also the lead bank in the other
selling groups. Usually, the offering will include the issuance of new shares, intended to raise
new capital, as well the secondary sale of existing shares. However, certain regulatory
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restrictions and restrictions imposed by the lead underwriter are often placed on the sale of
existing shares.
Public offerings are primarily sold to institutional investors, but some shares are also
allocated to the underwriters' retail investors. A broker selling shares of a public offering to
his clients is paid through a sales credit instead of a commission. The client pays no
commission to purchase the shares of a public offering, the purchase price simply includes
the built-in sales credit. The issuer usually allows the underwriters an option to increase the
size of the offering by up to 15% under certain circumstance known as the green shoe or over
allotment option.
Auction
A venture capitalist named Bill Hambrecht has attempted to devise a method that can reduce
the inefficient process. He devised a way to issue shares through a Dutch auction as an
attempt to minimize the extreme under pricing that underwriters were nurturing.
Underwriters, however, have not taken to this strategy very well. Though not the first
company to use Dutch auction, Google is one established company that went public through
the use of auction. Google's share price rose 17% in its first day of trading despite the auction
method. Perception of IPOs can be controversial. For those who view a successful IPO to be
one that raises as much money as possible, the IPO was a total failure. For those who view a
successful IPO from the kind of investors that eventually gained from the under pricing, the
IPO was a complete success.
Pricing
Historically, IPOs both globally and in the US have been under priced. The effect of Under
pricing an IPO is to generate additional interest in the stock when it first becomes Publicly
traded. This can lead to significant gains for investors who have been allocated shares of the
IPO at the offering price. However, under pricing an IPO results in "money left on the
table"lost capital that could have been raised for the company had the stock been offered
at a higher price. The danger of overpricing is also an important consideration. If a stock is
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offered to the public at a higher price than what the market will pay, the underwriters may
have trouble meeting their commitments to sell shares. Even if they sell all of the issued
shares, if the stock falls in value on the first day of trading, it may lose its marketability and
hence even more of its value. Investment banks, therefore, take many factors into
consideration when pricing an IPO, and attempt to reach an offering price that is low enough
to stimulate interest in the stock, but high enough to raise an adequate amount of capital for
the company. The process of determining an optimal price usually involves the underwriters
("syndicate") arranging share purchase commitments from lead institutional investors.
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investment climate in the economy. When prices of existing securities are rising and there is
large trading in the existing shares, such a boom in the secondary market correspondingly
signifies that new issues if floated at that point of time would be successfully subscribed.
Investors: On the one hand are the innumerable and not organised savers.
Capital Seekers: At the other end are those seeking capital from the capital market;
Regulatory Body: SEBI (the Securities & Exchange Board of India) an autonomous
and statutory body acts as the market regulator and market developer. It regulates and
controls the capital users and all functionaries between the users and the investors.
The Stock Exchanges: There are 23 Stock Exchanges registered with SEBI and under its
regulation. They provide a transparent and safe (risk-free) forum of a market for
investors to transact and invest their funds.
The Depositories: The depositories are innovative institutions, who are able to render
the market paperless by holdings securities electronically, providing ease and speed
for those transacting in the market.
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The maximum brokerage that a NSE trading member/registered sub-broker can charge as per
SEBI Stipulations.
1. As stipulated by SEBI, the maximum brokerage that can be charged is 2.5% of the
trade value. This maximum brokerage is inclusive of the brokerage charged by the
sub-broker (sub-brokerage cannot exceed 1.5% of the trade value). However the
trading member can charge additionally2. Service Tax @ 5% of the brokerage.
3. Transaction Charge levied by NSE.
4. Penalties rising on behalf of client (investor).
5. The brokerage and service tax is indicated separately in the contract note.
Procedure for Buying & Selling
If a client desires to buy or sell shares & securities, he has to transact in the secondary
market i.e. through the stock exchange. He cannot do so directly, but has to deal through a
broker recognized by SEBI He has to enlist the service of a SEBI registered trading member
or SEBI registered sub-broker of a trading member of a registered Stock Exchange. Different
stock exchanges have different bylaws though they all exhibit common safeguards and
precautions. In our study we restrict to overview the system adopted in National Stock
Exchange (NSE) and The Stock Exchange Mumbai (BSE) the leading stock exchanges of
India, which together cover over 75% of the transactions.
After approaching the broker/sub-broker of NSC/BSE to ensure verification of bonafide
membership investor may ask the broker/sub-broker to furnish documents such as SEBI
registration certificate, Registration with NSE/BSE etc to verify the antecedents of the
person. He can also approach the exchange to counter check whether the person holds the
valid registration. When a client instructs his broker to enter into a transaction, he may ask
him to buy or sell at the best price and leave the matter to broker's judgment or he may
33
specify reasonable price limits. For instance, The client may specify " Buy at 110 max." In
such a case, The broker may not be able to execute the order even though the quotations of
the day would be "Rs110, 111,112,113" as jobber's spread of say Rs.2 would make the share
available for purchase at a price not lower than Rs. 112.
We have seen that a client deciding to operate through an exchange, has to avail the services
of a SEBI registered broker/sub-broker. He has to enter into a broker-client agreement
client, his broker is supposed to give him a contract note having details of the transaction as
directed by the client. Since the contract note is a legally enforceable document, the client
should insist on receiving it. The client has the obligation to deliver the shares in case of sale
or pay the money in case of purchase within the time prescribed. If he has opted for
transaction in physical mode, in case of bad delivery of securities by him, he has the
responsibility to rectify them or replace them with good ones.
For Securities in Physical Mode - How Does Transfer of Securities Take Place?
To effect a transfer in the physical mode the securities should be sent to the company along
with a valid, duly executed and stamped transfer deed duly signed by or on behalf of the
transferor (seller) and transferee (buyer). It would be a good idea to retain photocopies of the
securities and the transfer deed(s) when they are sent to the company for transfer. It is
essential that the client sends them by registered post with acknowledgement due and
watches out for the receipt of the acknowledgement card. If he does not receive the
confirmation of receipt within a reasonable period, he should immediately approach the
postal authorities for confirmation. Sometimes, for his own convenience, the client (while
buying securities) may choose not to transfer the securities immediately.
Procedure to be Followed for Transfer of Securities
34
On receipt of the client's request for transfer, the company proceeds to transfer the securities
as per provisions of the law. In case they cannot affect the transfer, the company returns back
the securities giving details of the grounds under which the transfer could not be effected.
This is known as Company Objection.
CHAPTER-3
INDUSTRY PROFILE
Capital market is the market for long term funds. Just as the money market is the market
for short-term funds. It refers to all the facilities and the institutional arrangements for
borrowing and lending term funds (medium-term and long term funds). It does not deal in
capital goods but is concerned for long-term money capital comes predominantly from
private sector manufacturing industries and agriculture sector and from the government for
the purpose of economic development.
CONSTITUENTS OF INDIAN CAPITAL MARKET
35
The Indian capital market is divided into gilt-edged market and the industrial securities
market. The gilt-edged market refers to the market for government and semi-government
securities, backed by RBI, The securities traded in this market are stable in value and are
much sought after by bank and other institutions. The industrial securities market refers to
the market of shares and debentures of old and new companies. The industrial market is
further dividend into the new issue market and the old capital market i.e., the Stock
Exchange.
The new issue market refers to rising of new capitals in the form of shares and debentures.
Where as stock exchanges deal with securities already issued by companies. Both markets
are equally important hut often the new issue market is much more important from point of
view of economic growth. However, the functioning of the new issue market will he
facilitated only when there are abundant facilities of transfer of existing securities. The
capital market is also classified into primary capital market and secondary Capital market.
The primary market refers to new issue market which relates to the issue of shares,
preferences share and debentures of non-government public limited companies, and also the
raising of fresh capital by government companies and the issue of public sector.
HISTORICAL BACKGROUND
The stock market provides a market place for the purchase and sale of securities evidencing
the ownership of business debt. Stock Exchanges are the most perfect type of market
securities whether of Government or Semi-Government bodies or other public bodies as also
for shares and debentures issued by the joint stock companies.
CAPITAL MARKET
Primary Market (New Issue Market):
36
This method includes the data collected from the personal discussions with the authorized
clerks and members of the Exchange. The primary market provide channel for sale of new
securities primary market provide opportunity to issue of securities .
Secondary Market:
The secondary collection method includes the lectures of the superintend of the Department
of Market Operations, EDP etc, and also the data collected from the News, Magazines of the
NSE, HSE and different books issue of this study.
REGULATION
same time they are under the supervision and control of government. On 26th January 1950
the constitution o9f India came into force and under item 4 or the union list, stock exchange
became exclusively a central subject. In the following year a draft bill for stock exchange
regulation was prepared and referred to an expert committee under the chairmanship of Sri
Goranwala. The stock exchanges are regulated by securities (contract) regulation act
1956.And securities contract rules 1957. The securities contracts (regulation) act 1956
37
permits only those stock exchanges which are recognized by the central government to
function in any notified area or state. The recognized stock exchange is thus placed in a
privileged position .
STOCK EXCHANGES
At present there are 27 stock exchanges recognized under the securities contracts
(Regulation) act 1956. They are located at Ahmedahad, Bangalore, Bhuhhneshwar, Mumbai,
Calcutta, Cochin, Coimbatore, Delhi, Guwahati, Hyderabad, Indore, Jaipur, Kunpur,
Ludhiana, Mangalore, Meerut, Patna and Rajkot in addition to the above stock exchanges,
screen based exchanges like National Stock Exchange Of India, OTCET are also set up. The
recognized stock exchanges mobilize and direct the flow of savings of general public into
productive channels of investment. The Hyderabad Stock Exchange (HSE) was the sixth
stock exchange recognized under the securities contract (Regulation)
STOCK EXCHANGES
CITY
Bombay
Calcutta
Madras
YEAR OF
TYPE OF
YEAR OF
ESTABLISHMENT ORGANIZATION RECOGNITION
Voluntary non
profit
1875
1957
making
Association
1908
Public limited
company
1980
1937
Company limited
by
guarantee
1982
38
Ahmedabad
1894
Voluntary non
profit
making
Association
Delhi
1947
Public limited
company
1982
1943
Company limited
by
guarantee
1983
Hyderabad
1982
SECONDARY MARKET
The segment of secondary market is a place where script are traded to provide liquidity to
scripts which were issued in the primary market. Thus the growth of the secondary market is
very much dependant upon the primary market. The more the number of companies enters
the primary market the greater is the volume trade at the secondary market. The trading
activities in the secondary market is done through the recognized stock exchange i.e. ICSE
(inter connected stock exchange of India) is yet to make its beginning shortly. Mainly the
secondary market operations involved in buying and selling of securities on the stock
exchange through its members the companies hitting the primary market are mandatory
including a regional stock exchange. The following intermediaries are involved in the
secondary market.
1. Members I broker of a stock exchange i.e., for buying and selling of scripts.
2. Portfolio Manager.
3. Investment Manager.
4. Transfer Agent.
SEBI has issued several guidelines and regulations on secondary market, conduct and
registration of brokers, portfolio managers. SEBI has taken several steps to control and
regulate the secondary market in India which includes expansion of stock
39
exchange centers and their integration, improvement in trading system and settlement
procedures. Registration of brokers, sub-brokers prohibition of insider trading, transparency
in trading activities, eligibility norms of membership, capital adequacy
norms, margins. Further mutual funds have also been brought under the purview of the SEBI
trading
in
particular
scrip
fluctuating
beyond
8%
in
some
40
12. Rolling settlement was introduced in some shares for the purpose of encouraging the
buying and selling shares only by the genuine buyers or investors and to avoid excess
speculation.
ROLE OF SEBI
Securities and exchange Board of India was set up in 1988 and became a statutory
organization from January 1992. it was given a statutory status for healthy regulation of
capital markets. Office of Capital Issues (OCI) was abolished and the companies
were to approach market directly subject to SEBI guidelines relating to disclosures and other
measures of investors protection. This led to removal of hurdles i.e., getting permission from
CCI, MRTP commissioner, Company Law Board, Ministry of Finance, Industrial, Registrar
of companies etc.
The Securities and Exchange Board of India Act (SEBI) empowers SEBI to:
1. Regulate the business of stock exchanges.
2. Register and regulate intermediaries associated with the securities market as
well as working of mutual funds.
3. Promote and regulate self Regulatory organizations.
4. Prohibit fraudulent and unfair trade practices relating to securities transactions.
SEBI directed that all Stock Exchanges should computerize their operations to have better
transparency and. efficient screen based trading system and also permitted most of the stock
exchanges
to
have
their
additional
trading
floors
at
different
places
through VSATS or WAN/LAN systems to suit their requirements. This has facilitated
members and investors to do their trading activities in a more and competitive way.
The system of insurance of brokers was made mandatory; the norms for bad deliveries were
standardized.
41
ONLINE TRADING
In India first fully automated stock exchange was formed in the year 1994 with fully
automated trading system called screen based trading or Online trading basing on computers
this system has brought revolutionary changes in the secondary markets in India. This system
is mainly helpful for the purpose of protecting the investors from the brokers in the price
rigging. The NSE has used the software called NEAT (National Exchange for Automated
Trading). After NSE starting the Online trading the Indias premier stock exchanges followed
the way of NSE and BSE.
Objectives of Online Trading:
Providing a Nation wide trading facility for all type of securities.
Ensuring equal access to investors to all over the country through communication
network.
Providing a fair, efficient and transparent securities market using an electronic trading
system.
Enabling the use of shorter settlement cycles and book entry settlement system.
OUTCRY SYSTEM
Trading on stock exchanges used to take place through open outcry without use of
technology for immediate matching or recording of trades. This was a time consuming and
inefficient system. The practice of physical trading imposed limits on trading volumes and
hence the slow speed with which new information was incorporated into price.
NSE is the first exchange in the world to use satellite communication technology for trading.
Its trading system, called National Exchange for Automated Trading (NEAT), is a state ofthe-art client server based application. At the server end all trading information is stored in
42
an in memory database to achieve minimum response time and maximum system availability
for users. It has uptime record of 99.7%. For all trades entered into NEAT system, there is
uniform response time of less than one second.
DEMATERALISATION
The decade of Lhe9Os witnessed a revolution in the clearing and settlements functions in he
Indian securities market. Promulgation of the Depositories Ordinance in 1995 and
establishment in this revolution which sought to eliminate the ills associated with paper base
securities system such as delay in transfer, bad delivery, theft, fake and forged shares, and
synchronize the settlement of trade transfer of securities irrespective of geographical
locations.
Although in the first phase, SEB1 has made Demat trading for selected scripts, efforts should
be made to bring in all major exchanges within a well defined time frame for acceptance of
Demat Trading. With SEBI allowing Demat delivery even in the fiscal segment more and
more retail investor are likely to get in to the system which ultimately encourage more
brokers also to become to become depository participants and educate the retail investor. The
advantage of script less trading and the need for such Demat trading compulsorily could also
be explored. Apart from this the banking network in the country could be used for this
purpose by providing tow way quotes to take up this work.
Stock exchange:
A stock exchange or bourse is a corporation or mutual organization which provides the
facilities for stock brokers to trade company stocks and other securities. Stock exchanges
instruments and capital events including the payment of income and dividends.
43
The securities traded on a stock exchange include shares issued by companies, unit trusts and
other pooled investment products as well as bonds. To be able to trade a security on a certain
stock exchange, it has to be listed there.
Usually there is a central location at lest for recordkeeping, but trade is less linked to such a
physical place, as modern markets are electronic networks, which gives the advantages of
speed and cost of transactions. Trade on an exchange is by members only; a stock broker is
said to have a seat on the exchange.
A stock exchange is often the most important component of a stock market. There is usually
no compulsion to issue stock via the stock exchange itself, nor must .
The initial offering of stocks and bonds to investors is by definition done in the primary
market
and
subsequent
trading
is
done
in
the
secondary
market.
Increasingly all stock exchanges are part of a global market for securities, supply and
demand in stock markets is driven by various factors which, as in all free markets, affect the
price of stocks (see stock valuation).
44
now informal meeting and became the Bruges Bourse. The idea spread quickly around
Flanders and neighboring counties and Bourse.
In the middle of the 13th century Venetian bankers began to trade in government securities.
In 1351 the Venetian Government outlawed spreading rumors intended Intended to lower the
price of government funds. There were people in Pisa. Verona, Genoa and Florence who also
began trading in government securities during the 14th century. This was only possible
because these were independent city states not ruled by a duke but a council of influential
citizens. The Dutch later started joint stock companies, which let shareholders invest in
business ventures and get a share of their profits or losses. In 1602, the Dutch East India
Company issued the first shares on the Amsterdam Stock Exchange. It was the first company
to issue stocks and bonds.
45
4. South America
5. Oceania
6. Africa
USA:
1. Archipelago Exchange, merged with NYSE
2. Arizona Stock Exchange, closed down
3. American Stock Exchange (AMEX)
4. Boston Stock Exchange
5. Chicago Stock Exchange
6. Hedge Steel
7. NASDAQ
8. National Stock Exchange
9. New York Stuck Exchange
10. Pacific Exchange (PCX)
11. Philadelphia Stock Exchange (PHLX)
INDIA:
1. Ahmedabad Stock Exchange
2. Bangalore Stock Exchange
3. Bhubaneswar Stock Exchange Association
4. Bombay Stock Exchange (B SE)
5. Calcutta Stock Exchange
6. Coimbatore Stock Exchange
7. Delhi Stock Exchange Association
8. Gauhati Stock Exchange
9. Hyderabad Stock Exchange
46
initiative
into
high
street
finance
more
than
century
ago.
As cheque red and exciting its more than a century of existence has been, equally swift and
smooth was the transformation of BSE into one of the most modern stock exchanges in the
Asian region. It has several firsts to its credit even in the intensely competitive environment.
BSE was first to introduce concepts such as free float indexing, obtain ISO certification for
surveillance, establish huge infrastructure to enhance knowledge .know-how, put in place a
trading platform that works on a sub second response time - and capacity of 4 million trades
a day, export of trading platform technology to other stock exchange in Middle east, report
highest delivery ratio among the major exchanges, lowest transaction costs, a record of
lowest defaults, offer highest compensation for investor in cases of valid and approved
claims. The origin of the Bombay (Mumbai) Stock Exchange dated back to 1875. it was
organized under the name of the Native Stock and Share Brokers Association as a
voluntary and non- profit making association. It as recognized on a permanent basis in 1957.
This premier stock exchange is the oldest stock exchange in Asia.
47
CHAPTER-4
COMPANY PROFILE
INTRODUCTION TO INDIABULLS
48
Indiabulls is Indias leading Financial and Real Estate Company with a wide
presence throughout India. They ensure convenience and reliability in all their products and
services. Indiabulls has over 640 branches all over India. The customers of Indiabulls are
more than 4,50,000 which covers from a wide range of financial services and products from
securities, derivatives trading, depositary services, research & advisory services, consumer
secured & unsecured credit, loan against shares and mortgage & housing finance. The
company employs around 4000 Relationship managers who help the clients to satisfy their
customized financial goals. Indiabulls entered the Real Estate business in the year 2005 with
its group of companies. Large scale projects worth several hundred million dollars are
evaluated by them.
Indiabulls Financial Services Ltd is listed on the National Stock Exchange (NSE),
Bombay Stock Exchange (BSE) and Luxembourg Stock Exchange. The market capitalization
of Indiabulls is around USD 2500 million (29thDecember, 2006). Consolidated net worth of
the group is around USD 700 million. 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, Goldman Sachs, Merrill Lynch, Morgan Stanley and Farallon
Capital.
GROWTH OF INDIABULLS
Year 2000-01:
One of Indias first trading platforms was set up by Indiabulls Financial Services Ltd. with
the development of an in-house team.
49
Year 2001-03:
The service offered by Indiabulls was increased to include Equity, Wholesale Debt, Mutual
fund, IPO Financing/Distribution and Equity Research.
Year 2003-04:
In this particular year Indiabulls ventured into Distribution and Commodities Trading
business.
Year 2004-05:
This was one of the most important years in the history of Indiabulls.
In this year:
Indiabulls came out with its initial public offer (IPO) in September 2004.
Indiabulls started its Consumer Finance business.
Indiabulls entered the Indian Real Estate market and became the first company to
bring FDI in Indian Real Estate.
Indiabulls won bids for landmark properties in Mumbai.
Year 2005-06:
In this year the company acquired over 115 acres of land in Sonepat for residential home site
development. The world renowned investment banks like Merrill Lynch and Goldman Sachs
increased their shareholding in Indiabulls. It also became a market leader in securities
brokerage industry, with around 31% share in Online Trading. The worlds largest hedge
50
fund, Farallon Capital and its affiliates committed Rs. 2000 million for Indiabulls
subsidiaries Viz. Indiabulls Credit Services Ltd. and Indiabulls Housing Finance Ltd. In the
same year, the Steel Tycoon Mr. L N Mittal promoted LNM India Internet venture Ltd.
acquired 8.2% stake in Indiabulls Credit Services Ltd.
Year 2006-07:
In this year, Indiabulls Financial Services Ltd. was included in the prestigious Morgan
Stanley Capital International Index (MSCI). Indiabulls Financial Services Ltd. was benefited
with the Farallon Capital agreeing to invest Rs. 6,440 million in it. The company also
received an in principle approval from Government of India for development of multi
product SEZ in the state of Maharashtra. Indiabulls Financial Services Ltd acquired 100% of
the equity share capital of Noble Realtors Pvt. Ltd. Noble Realtors is a Company engaged in
the business of construction and development of real estate projects. Indiabulls Real Estate
Business was demerged to become a separate entity called Indiabulls Real Estate Ltd. The
Board of Indiabulls Financial Services Ltd., Resolved to Amalgamate Indiabulls Credit
Services Ltd and demerge Indiabulls Securities Limited.
Year 2007-09:
Indiabulls Power Limited was established in 2007 to capitalize on emerging opportunities in
the Indian power sector. It develops and intends to operate and maintain power projects in
India. Indiabulls is currently developing Five Thermal Power Projects with an aggregate
capacity of approximately 6600 MW. These projects include, Amravati Phase-I (1320 MW),
Amravati Phase-II (1320 MW), Nasik (1335 MW) in Maharashtra, Bhaiyathan Thermal
Power Project (1320 MW) & Chhattisgarh Power Project (1320 MW) in the State of
Chhattisgarh. In addition to the above Indiabulls is also developing four medium size Hydro
Power Projects in Arunachal Pradesh aggregating to 167 MW. Indiabulls has also entered
into MoUs with the Govt. of Madhya Pradesh and Jharkhand for setting up of 2640 MW &
1320 MW Thermal Power Projects in each of these States respectively.
51
BOARD OF DIRECTORS
Sameer Gehlaut
Gagan Banga
Executive Director
Rajiv Rattan
CEO
Shamsher Singh
Director
Aishwarya Katoch
Director
Karan Singh
Director
Director
Saurabh K Mittal
Director
Amit Jain
Company Secretary
52
Regional Manager
Branch Manager
Senior Sales Manager
Support System
Back Office
Executive
Sales Function
RM/SRM
Local Compliance
Officer
ARM
Dealer
53
54
Indiabulls Securities
Trading Products
Cash Account
Intraday Account
Margin Trading
CASH Account: It provides the client to buy 4 times of cash balance in his trading account.
INTRADAY Account: It provides the client to buy 8 times of his cash balance in the trading
account.
MANTRA Account: Also called as margin trading, is a special account to buy on leverage
for a longer duration
55
56
57
CHAPTER-5
DATA ANALYSIS AND INTERPRETATION
No. of result
graduate
Graduate
Post
6
10
graduate
Professional
23
11
58
Interpretation:
Education
qualification
of
investors
who
investing
in
No. of Result
1
3,00,000
3,00,000-
5,00,000
above 5,00,000
14
26
59
Q. What kind of risk do you perceive while investing in the stock market?
No.of
Risk in stock market
Uncertainty of returns
Slump in stock market
Fear of windup of
result
company
Others
19
22
6
3
60
No.of
Reasons
Lack of knowledge &
result
understanding
Increase speculation
Risky & highly leveraged
Counter party risk
27
2
17
4
61
Result
27
9
More stable
Direct investment without buying &
holding assets
13
Result
23
2
8
17
62
Q. From where you prefer to take advice before investing in capital market?
No. of
Advice From
Brokerage houses
Research analyst
Websites
News Networks
Others
Result
15
7
2
23
3
63
Interpretation: Mostly from investing point of view, they take advise from
new networks i.e., 23% before investing in capital market.
64
No. of
investment
Great results
Moderate but
result
4
acceptable
Disappointed
24
22
65
CHAPTER-6
SUGGESTIONS
1. Before buying the share it is essential that investor must shack the position of liquidity (all
A group shares has high liquidity). The source of information about liquidity can get from
the brokers
2. Avoid buying shares of the company with an equity capital less than Rs.1 cr.
3. Avoid buying the share 9f the company with the number of share holders less than 5000.
4. Avoid buying shares of the company which are traded infrequently.
66
5. Avoid buying shares of the company which are not traded on your stock exchange.
6. Investor must show interest in steady and fast growth shares only.
7. Avoid buying Turn rounds (making loss continuously), Cyclical (cycles of good and bad
performance), Dog shares (very inactive or passive).
8. Avoid companies with low PIE ratio relative to the market as always.
9. If the investor is confident of EPS moving up and expects PIE to increase as well stick to
the shares and be patients.
10. Another side of the analysis is that investor must also know the factors.
Is the market in a good mood or not at that time?
How will the market feel about the share?
CHAPTER-7
CONCLUSION
Let me end by bringing in the beginning. It is globally recognized that the growth of the
economy depends to a large extent globally on the growth of the Securities Market as it
provides the vehicle for raising resources and managing risks. Today, the wheels of the
economy cannot move without the Securities Market. Indeed, it is a modern marvel for
accomplishing astonishing numbers in terms of economic growth.
Further, todays Securities Markets are absolutely different from what they were 10 years ago
or will be in the next 10 years. They would remain in transition. There would be ups and
downs. Many would succeed and many would vanish along the transformation journey. This
67
would always be the reconfirmation of the point that businesses are no more businesses; they
have become battles of competency.
To conclude, I would say that the Securities Market opportunity zone is contracting
somewhere and expanding somewhere. This may appear paradoxical. It must be understood
that leadership demands a brilliant focus on emerging opportunities, competence building,
strategies for the leadership position in the opportunity zones and principles-centered
business practices. Therefore, we need to create a culture, which embraces change and
moves ahead with an objective to lead. Let us compete for the future global opportunities.
CHAPTER-8
BIBLIOGRAPHY
BOOKS:
1. Khan.M.Y, 2006, Financial Services, 3rd Edition, Tata Mcgraw Hill, New delhi-8.
2. Rejda.G.E, 2002, Principles of Risk Management & Insurance, 7th Edition, Pearson
Education.
3. Gordon & Natarajan, 2006, Financial Market and Services, 3rd Edition, Himalaya
Publishing House, Mumbai.
4. Learning cycle in capital market in India By R.khannan.
WEBSITES:
www.nseindia.com.
68
www.bseindia.com.
www.capitalmarket in India.com.
www.wikipedia.org/wiki/capitalmarkets.
www.sebi.gov.in
www.rbi.org.in
69