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Astha School of Management, BBSR Orissa: A Project Report On
Astha School of Management, BBSR Orissa: A Project Report On
On
AN OVERVIEW OF INDIAN STOCK MARKET
(Batch2008-2010)
ASTHA SCHOOL OF
MANAGEMENT,BBSR
ORISSA
1
CANDIDATE DECLARATION
2
Dated MR.SAROJ
KUMAR DAS
REG,0806998022
ACKNOWLEDGEMENT
3
SAROJ KUMAR DAS
Astha school of management
Reg. 0806998022
Executive Summary
Indian securities markets have undergone many changes during the last decade.
Exponential growth in trading volumes is pushing existing trading systems and
processes to capacity and increasing settlement risk. With Indian market moving
to a T+3 rolling settlement cycles in line with global markets, SEBI is continuing
its efforts to increase the efficiency and transparency in Indian markets. Indeed
it has been SEBI endeavor to make the Indian markets, one of the most
competitive and efficient markets of the world.
4
stock market. The objective of brokerage firms is to help the investor to minimize
the risk involved in investment and maximize the return. Some of the main
characteristics of the brokerage industry include growth in e-broking; growing
derivatives market, decline in brokerage fees etc. An endeavor was also made to
understand the role played by Indiabulls Securities compared to its competitors
in Indian retail brokerage market.
Table of Contents
Particulars
Chapter 6 Derivatives............................................................
Chapter 7 Competitors..........................................................
5
Chapter 10 Research Methodology
Questionnare
Conclusion
Bibliography..........................................................................
Appendix...............................................................................
Chapter 1
Indian Stock Markets is one of the oldest in Asia. Its history dates back to nearly
200 years ago. The earliest records of security dealings in India are meager and
obscure. The East India Company was the dominant institution in those days
and business in its loan securities used to be transacted towards the close of the
eighteenth century.
By 1830's business on corporate stocks and shares in Bank and Cotton presses
took place in Bombay. Though the trading list was broader in 1839, there were
only half a dozen brokers recognized by banks and merchants during 1840 and
1850. The 1850's witnessed a rapid development of commercial enterprise and
brokerage business attracted many men into the field and by 1860 the number
of brokers increased into 60. In 1860-61 the American Civil War broke out and
6
cotton supply from United States to Europe was stopped; thus, the 'Share
Mania' in India began. The number of brokers increased to about 200 to 250.
At the end of the American Civil War, the brokers who thrived out of Civil War in
1874, found a place in a street (now appropriately called as Dalal Street) where
they would conveniently assemble and transact business. In 1887, they formally
established in Bombay, the "Native Share and Stock Brokers' Association,
which is alternatively known as The Stock Exchange". In 1895, the Stock
Exchange acquired a premise in the same street and it was inaugurated in 1899.
Thus, the Stock Exchange at Bombay was consolidated.
The Indian stock market has been assigned an important place in financing the
Indian corporate sector. The principal functions of the stock markets are
enabling mobilizing resources for investment directly from the investors
providing liquidity for the investors and monitoring
Disciplining company management.
The two major stock exchanges in India are National Stock Exchange (NSE)
and Bombay Stock Exchange (BSE).
With the liberalization of the Indian economy, it was found inevitable to lift the
Indian stock market trading system on par with the international standards. On
the basis of the recommendations of high powered Pherwani Committee, the
National Stock Exchange was incorporated in 1992 by Industrial Development
Bank of India, Industrial Credit and Investment Corporation of India, Industrial
7
Finance Corporation of India, all Insurance Corporations, selected commercial
banks and others.
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, market of debt and
derivative instruments and intensive use of information technology.
8
There are two kinds of players in NSE:
Trading members
Participants
Recognized members of NSE are called trading members who trade on behalf of
themselves and their clients. Participants include trading members and large
players like banks who take direct settlement responsibility.
NSE has several advantages over the traditional trading exchanges. They are as
follows:
NSE brings an integrated stock market trading network across the nation.
Investors can trade at the same price from anywhere in the country since
inter-market operations are streamlined coupled with the countrywide
access to the securities.
NSE Nifty
9
S&P CNX Nifty is a well diversified 50 stock index accounting for 22 sectors
of the economy. It is used for a variety of purposes such as benchmarking fund
portfolios, index based derivatives and index funds.
NSE came to be owned and managed by India Index Services and Products Ltd.
(IISL), which is a joint venture between NSE and CRISIL. IISL is India's first
specialised company focused upon the index as a core product. IISL have a
consulting and licensing agreement with Standard & Poor's (S&P), who are world
leaders in index services. CNX stands for CRISIL NSE Indices. CNX ensures
common branding of indices, to reflect the identities of both the promoters, i.e.
NSE and CRISIL. Thus, 'C' stands for CRISIL, 'N' stands for NSE and X stands for
Exchange or Index. The S&P prefix belongs to the US-based Standard & Poor's
Financial Information Services.
The Bombay Stock Exchange is one of the oldest stock exchanges in Asia. It
was established as "The Native Share & Stock Brokers Association" in
1875. It is the first stock exchange in the country to obtain permanent
recognition in 1956 from the Government of India under the Securities Contracts
(Regulation) Act, 1956. The Exchange's pivotal and pre-eminent role in the
development of the Indian capital market is widely recognized and its index,
SENSEX, is tracked worldwide.
SENSEX
The Stock Exchange, Mumbai (BSE) in 1986 came out with a stock index that
subsequently became the barometer of the Indian stock market.
SENSEX is not only scientifically designed but also based on globally accepted
construction and review methodology. First compiled in 1986, SENSEX is a
basket of 30 constituent stocks representing a sample of large, liquid and
10
representative companies. The base year of SENSEX is 1978-79 and the base
value is 100. The index is widely reported in both domestic and international
markets through print as well as electronic media
The Index was initially calculated based on the "Full Market Capitalization"
methodology but was shifted to the free-float methodology with effect from
September 1, 2003. The "Free-float Market Capitalization" methodology of index
construction is regarded as an industry best practice globally. All major index
providers like MSCI, FTSE, STOXX, S&P and Dow Jones use the Free-float
methodology.
The SENSEX captured all these events in the most judicial manner. One can
identify the booms and busts of the Indian stock market through SENSEX.
In order to fulfill the need of the market participants for still broader, segment-
specific and sector-specific indices, the Exchange has continuously been
increasing the range of its indices. The launch of BSE-200 Index in 1994 was
followed by the launch of BSE-500 Index and 5 sectoral indices in 1999. In 2001,
BSE launched the BSE-PSU Index, DOLLEX-30 and the country's first free-float
11
based index - the BSE TECK Index. The Exchange shifted all its indices to a free-
float methodology (except BSE PSU index) in a phased manner.
The values of all BSE indices are updated every 15 seconds during the market
hours and displayed through the BOLT system, BSE website and news wire
agencies.
Chapter 2
OVERVIEW OF INDIABULLS
2.1 Introduction
Indiabulls is Indias leading Financial and Real Estate Company with a wide
presence throughout India. Indiabulls Financial Services Limited was established
in the year 2000 by three promoters all of whom are engineers from Indian
Institute of Technology, New Delhi, and has attracted over Rs 700 million of
investments from venture capital firms, private equity funds and institutional
investors.
History
12
Indiabulls Financial Services Limited was incorporated on January 10,
2000 as Orbis Infotech Private Limited at New Delhi.
The name of the Company was changed to Indiabulls Financial Services
Private Limited on March 16, 2001 due to change in the main objects of
our Company from Infotech business to Investment & Financial Services
business.
It became a Public Limited Company on February 27, 2004 and the name
of the Company was changed to Indiabulls Financial Services Limited.
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.
13
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.
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: 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 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
14
Tycoon Mr. LN 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). The company
also received an in principle approval from Government of India for
development of multi product SEZ in the state of Maharashtra.
Securities &
Secured
Derivatives
Financing
Broking
Consumer
Financing
15
2.3 IndiaBulls Subsidiaries
Administration
Operations & Service quality
16
Technology
Finance
Corporate affairs
Human resources
Marketing
Corporate communications
Legal
17
Director-Online Director-Offline
Regional Manager
Branch Manager
Relationship
Manager
18
Figure 2.2 Department based organizational Structure of
Indiabulls
19
Senior Vice President
Regional Manager
Branch Manager
Senior Sales Manager
RM/SRM
Back Office Local Compliance
Executive Officer
ARM
Dealer
20
Figure 2.3 Regional hierarchies of Indiabulls
Key Positions
Chairman
Chief Executive
Executive Director Executive Director
Officer
21
2.5 Products and Services of Indiabulls
Indiabulls offer the following products and services in the financial markets:
Stocks
Options and Futures
Depository Services
Commodities
Insurance Products
Mutual Funds
Bonds and Debt Products
Services
In April 2006 Indiabulls started Commercial Vehicle Finance under the flagship of
Indiabulls Credit Services Ltd. in order to provide refinance to its commercial
vehicle clients. Their fundamentals, competent management and expertise in
financing the transporters are pretty sound. The companys unique market
position enables it to excel in client contentment, quick service and growthled
profitability.
.Mortgage Loans:
22
Indiabulls Housing Finance Ltd. which is a flagship of Indiabulls has started
lending of Mortgage Loans to prospective customers. This company enables the
home-seekers to access finance to buy their homes. They provide different types
of loans like plot loans, Loan against Residential, Commercial and Rental
Property, thereby enabling the borrower to leverage the property owned to fund
any genuine needs be it Business Expansion, Child's Education, Child's Marriage
or for Holiday Abroad.
Consumer Finance:
Indiabulls is a retail focused organization that fulfills the credit needs of a large
percentage of population in India. The key aspect of Indiabulls business model is
to provide an extremely unique customer experience.
23
Chapter 3
3.1 Introduction
Indiabulls Securities Ltd is engaged in the business of Internet based trading and
is registered with SEBI as a stockbroker, trading and clearing member of NSE,
member of BSE and as a depositary participant with National Securities
Depository Limited (NSDL) and Central Depository Services (India) Limited
(CDSL). ISL is also a member of the National Securities Clearing Corporation
Limited.
History
Indiabulls Securities Limited (ISL) was incorporated as GPF Securities Private
Limited on June 9, 1995.
The name of the company was changed to Orbis Securities Private Limited on
December 15, 1995 to change the profile of the company and subsequently due
to the conversion of the company into a public limited company; the name was
further changed to Orbis Securities Limited on January 5, 2004.
The name of the company was again changed to Indiabulls Securities Limited on
February 16, 2004 so as to capitalize on the brand image of the term Indiabulls
in the company name. ISL is a corporate member of capital market & derivative
segment of The National Stock Exchange of India Ltd.
24
Trading With Indiabulls
This section will introduce us about the process and instruments used to help a
customer or a client to trade with Indiabulls securities. This process is almost similar to
any other trading firm but there will be some difference in the cost of brokerage
commission.
Trading: It is a process by which a customer is given facility to buy and sell share this
buying and selling can only be done through some broker and this is where Indiabulls
help its customer.
A customer willing to trade with any brokerage house need to have a demat account,
trading account and saving account with a brokerage firm. Any one having following
document can open all the above mentioned account and can start trading.
Document Required
3 photographs ( signed across)
Photo Identification Proof - any of the following - Voter ID/Driving
License/Passport.
Address Proof any of the following - Voter ID/Driving License/ Passport/ Bank
statement or pass book sealed and attestation by bank official/ BSNL landline
bill.
A crossed Cheque favoring India bulls Securities Ltd. of the required
amount. The amount for Demat as well as trading will be Rs. 900/-(free Demat
+900 Trading Account) the minimum amount being Rs. 900 a cheque can be
given for a larger amount.
Copy of PAN Card is mandatory.
Registration Kit
CDSL Demat Kit
Bank and address proof declaration. (Master undertaking)
25
PAN name discrepancy form
These documents may not be consumer friendly but it is to avoid illegal transaction
and to prevent black money this ensures that money invested is accounted.
Online business
Offline business
Other Sales
26
3.3 Basic Requirement for doing Trading
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. We need to
approach the Depository Participants (DP, they are like bank branches), to open
Demat account.
Think of it like a bank. The head office where all the technology rests and details
of all accounts held is like the depository. And the DPs are the branches that
cater to individuals.
27
3.4 Trading Products of Indiabulls Securities
Indiabulls Securities
Trading Products
Fig
28
Margin trading (Mantra)
Cash account provides the client to buy 4 times of cash balance in his trading
account.
Intraday product provides the client to buy 8 times of his cash balance in the
trading account.
Mantra account called as margin trading, is a special account to buy on leverage for a
longer duration
Chapter 4
4.1 Income: Indiabulls Securities Ltd income unit has the following components
Brokerage
Equities
F&O
29
Income from Offline Business: The offline business unit has one of the
widest branch networks in India with a pan India presence with large market
share. The revenues have grown from Rs. 96.02 million in FY 2002 to Rs. 447.25
million in FY 2004 and have changed from 72.52% of total business in FY 2001
to 64.34% of business in FY 2004. The rapid growth of the Offline business is
driven by growth in total clients, increased geographical presence.
Brokerage
Equities
F&O
Wholesale Debt Markets
Brokerage Income
Brokerage Income comprises revenues earned from Equities, F&O and Wholesale
debt markets on all stock exchanges.
30
Income from transaction and service charges and interest
income
Related income comprises revenues earned from market related activities such
as transaction charges, service charges and interest levied on customer
transactions. These charges are dependent on trading volume, number of
transactions completed and any ledger debit amount in the client account.
Other income comprises revenues earned from sale of third party products such
as Insurance, Mutual Funds and new services such as Research Services.
Revenues are a function of volume of mutual funds sold, the type of fund sold
(active managed equity, passive fixed income etc.) and the commissions paid on
the funds sold.
31
Bar Chart 4.1 Brokerage Income of Indiabulls Securities (in Crore)
32
Pie Chart 4.2 Segment wise Sales of IndiaBulls Securities for year 2005
33
4.2 Financial Ratio Analysis of Indiabulls Securities Ltd
34
Profitability ratios:
35
Indiabulls Securities Ltd. Mar 2004 Mar Mar 2006
2005
Per cent (Non-Annualized) 12 months 12 12 months
months
-
Margins ratios (%)
-
As % of operating income
PBDT 43.05 44.75 58.76
PBT 41.45 42.87 56.7
PAT 25.92 27.25 37.49
PBDT (NNRT) 43.01 44.52 58.72
PBT (NNRT) 41.41 42.63 56.66
PAT (NNRT) 25.88 27.02 37.45
-
Corporate tax as per cent of PBT 35.83 33.69 32.47
-
Returns ratios (%)
-
As % of total assets
PBDT 18.95 31.35
PBT 18.15 30.25
PAT 11.54 20
PAT (NNRT) 11.44 19.98
Operating cash flow 77.78 65.19
-
As % of net worth
PBDT 53.48 128.77
PBT 51.23 124.25
PAT 32.57 82.16
PAT (NNRT) 32.29 82.07
Operating cash flow 219.53 267.75
-
As % of capital employed
PBDT 47.39 58.11
PBT 45.39 56.06
PAT 28.86 37.07
PAT (NNRT) 28.61 37.03
Operating cash flow 194.53 120.82
-
Appropriation of profits (as % of
PAT)
36
Dividends 3.89 19.66 0.52
Equity dividends 0.44 2.27 0.07
Preference dividends 3.44 17.39 0.45
Retained profits 96.11 80.34 99.48
-
Dividends / net worth 6.4 0.43
Equity dividends / equity capital 3.98 0.45
Equity dividends / equity cap. & sh. 3.98 0.45
prem.
Liquidity ratios:
Indiabulls Securities Ltd. Mar 2004 Mar 2005 Mar 2006
Times (Non-Annualized) 12 months 12 months 12 months
-
Short term liquidity
-
Cash / current liabilities & provisions 0.67 0.86 1.7
Quick ratio 1.6 0.86 1.89
-
Medium to long term liquidity
-
Current ratio 1.776 1.141 2.137
Solvency ratio 1.567 1.561 1.269
Debt equity ratio 1.237 0.848 2.056
-
Interest incidence (%) 11.42 19.13 11.67
-
Interest cover
-
PBIT / interest 3.63 4.01 5.2
PBIT (NNRT) / interest 3.63 4 5.2
Operating cash flow / interest -2.99 11.97 8.91
-
(Rs. Crore)
Current assets 231.47 261.19 914.49
Current liabilities 130.34 228.86 427.87
Working capital 101.13 32.33 486.62
Net worth 83.34 108.43 181.77
37
Reserves & surplus 20.24 45.33 163.94
4.3 Interpretation:
38
Profitability Ratios: Profitability is the net result of a number of policies and
decisions. The ratios examined thus far provide useful clues to the effectiveness
of firms operations.
Liquidity Ratios: liquidity ratios deal with firms ability to pay off its debts. It
includes
Current Liabilities
Quick ratio (acid test ratio): The quick ratio is calculated by deducting
inventories from current assets and then dividing the remainder by current
liabilities. The quick ratio is a measure of the firms ability to pay-off the
short-term liabilities. A large part of the firms current assets are tied up in
slow paying debts. The industry average for Acid test ratio is 2.1, but for
Indiabulls securities quick ratio is 1.6, 0.86 & 1.89 for year 2004, 2005 &
2006 respectively, which is less than Industry average. The quick ratio
should be high which indicates the companys ability to pay-off short term
obligations.
39
Debt equity ratio is the related contribution of creditors and owners of the
business in its financing.
(1)
Increasing Market Share of Indiabulls on NSE Trading Volumes
35
%
30.7
30 %
%
25 22.3
% % 21.9
18.8 %
20 %
% 17.5
%
15
%
10
%
5.5
3.4
5 %
1.1 1.9 2.2 %
%
% % %
0
(1)
%
FY200 FY200 FY200 FY200 FY200
2 3 4 5 6
40
Graph 4.3 Market share of Indiabulls on NSE trading Volumes
(2)
Market Shares of Top Brokers on NSE
41
5.1 Project Framework
42
The Indian capital markets have witnessed a transformation over the last
decade. India now finds its place amongst some of the most sophisticated and
largest markets of the world. With over 20 million shareholders, India has the
third largest investor base in the world after the USA and Japan. The Indian
capital market is significant in terms of the degree of development, volume of
trading and its tremendous growth potential.
Over the past few years, the capital markets have also witnessed substantial
reforms in regulation and supervision. Reforms, particularly the establishment
and empowerment of SEBI, market-determined prices and allocation of
resources, screen-based nation-wide trading, dematerialization and electronic
transfer of securities, rolling settlement and derivatives trading have greatly
improved both the regulatory framework and efficiency of trading and
settlement.
43
Exchanges
Clearing Corporations
Brokers
Custodians
Depositories
Investors
Merchant Bankers
44
Delivery refers to buying stocks today with a plan of selling it in future.
In India there is a concept of T+2 settlements. Which means a stock
bought on trade day is credited to your Demat account (or delivered) into
your Demat account after 2 days.
Square off- making the position nil. Say selling off the stocks. (or buying
back in case of short selling)
Short selling- selling without having the possession of the stocks
(possible in intraday trade). Selling the stocks initially and buying them
back later. It is a concept used in the falling markets.
Demat Account- the account where in the shares are delivered. Every
Demat account is linked to a trading account and a savings bank account.
Demat account are provided by CDSL (central depository services limited)
and NSDL (national securities depository limited). Indiabulls is a
depository participant which links the depository to the beneficial owner of
the account (client).
45
Chapter 6
DERIVATIVES
By far the most significant event in finance during the past decade has been the
extraordinary development and expansion of financial derivatives. These
instruments enhance the ability to differentiate risk and allocate it to those
investors most able and willing to take it
6.1 Definition:
Derivatives are instruments whose value is derived, in whole or in part, from the
value of one or more underlying assets.
History of Derivatives
The history of derivatives is surprisingly longer than what most people think.
Some texts even find the existence of the characteristics of derivative contracts
in incidents of Mahabharata. Traces of derivative contracts can even be found in
incidents that date back to the ages before Jesus Christ. However, the advent of
modern day derivative contracts is attributed to the need for farmers to protect
46
themselves from any decline in the price of their crops due to delayed monsoon,
or overproduction.
The first 'futures' contracts can be traced to the Yodoya rice market in Osaka,
Japan around 1650. These were evidently standardized contracts, which made
them much like today's futures.
The Chicago Board of Trade (CBOT), the largest derivative exchange in the
world, was established in 1848 where forward contracts on various commodities
were standardized around 1865. From then on, futures contracts have remained
more or less in the same form, as we know them today.
Derivatives have had a long presence in India. The commodity derivative market
has been functioning in India since the nineteenth century with organized trading
in cotton through the establishment of Cotton Trade Association in 1875. Since
then contracts on various other commodities have been introduced as well.
The derivatives market in India has grown exponentially, especially at NSE. Stock
Futures are the most highly traded contracts on NSE accounting for around 55%
of the total turnover of derivatives at NSE, as on April 13, 2005.
47
6.2 Understanding Derivatives
The primary objectives of any investor are to maximize returns and minimize
risks. Derivatives are contracts that originated from the need to minimize risk.
The word 'derivative' originates from mathematics and refers to a variable, which
has been derived from another variable. Derivatives are so called because they
have no value of their own. They derive their value from the value of some other
asset, which is known as the underlying.
For example, a farmer fears that the price of soybean (underlying), when his
crop is ready for delivery will be lower than his cost of production.
Let's say the cost of production is Rs 8,000 per ton. In order to overcome this
uncertainty in the selling price of his crop, he enters into a contract (derivative)
with a merchant, who agrees to buy the crop at a certain price (exercise price),
when the crop is ready in three months time (expiry period).
In this case, say the merchant agrees to buy the crop at Rs 9,000 per ton. Now,
the value of this derivative contract will increase as the price of soybean
decreases and vice-a-versa.
If the selling price of soybean goes down to Rs 7,000 per ton, the derivative
contract will be more valuable for the farmer, and if the price of soybean goes
down to Rs 6,000, the contract becomes even more valuable.
48
This is because the farmer can sell the soybean he has produced at Rs 9000 per
ton even though the market price is much less. Thus, the value of the derivative
is dependent on the value of the underlying.
If the underlying is a financial asset like debt instruments, currency, share price
index, equity shares, etc, the derivative is known as a financial derivative.
49
The standard contract on soybean has a size of 100 quintals. So the farmer will
be left with 50 quintals of soybean uncovered for price fluctuations.
In India we have several derivatives, two of the most famous derivatives traded
on National stock exchange are
Futures
Option
Futures and options are traded on the NSE platform, with a normal IndiaBulls
trading account the client get the access to trade in the F&O contracts.
As the name suggests, futures are derivative contracts that give the holder the
opportunity to buy or sell the underlying at a pre-specified price some time in the
future.
They come in standardized form with fixed expiry time, contract size and price.
Forwards are similar contracts but customizable in terms of contract size, expiry
date and price, as per the needs of the user.
6.5 Options
50
Option contracts give the holder the option to buy or sell the underlying at a pre-
specified price some time in the future.
In the case of an option contract, the buyer of the contract is not obligated to
exercise the option contract. Options can be traded on the stock exchange or on
the OTC market.
Spot Price: the price at which an asset trades in the spot market.
Futures Price: the price at which the futures contract trades in the
futures market
Contract Cycle: The period over which the contract trades. The index
futures contracts on the NSE have a one-month, two-month and three-
month expiry cycles which expire on the last Thursday of the month.
On the Friday following the last Thursday, a new contract having a
three-month expiry is introduced for trading.
Contract Size: the amount of asset that has to be delivered less than
one contract. For instance, the contract size on NSE futures market is
100 Niftiest. It is prescribed by NSE for stocks. Each stock had a
different lot size.
51
Basis the futures price minus the spot price. There will be a
different basis for each delivery month for each contract. In a normal
market, basis will be positive. This reflects that futures prices normally
exceed spot prices.
Cost of Carry the storage cost plus the interest that is paid to
finance the asset less the income earned on the asset.
52
LONG => BUY
There are around 152 companies which are underlying for future and
options in NSE. There are
6.7 Option Contracts: The owner of an option has the OPTION to buy or sell
something at a predetermined price. Option provides the buyer of the contract
the right but not the obligation to exercise.
You buy a call option when you are bullish or have an upward target.
You buy a put option when you are bearish or have a downward target.
53
Stock options options on individual stocks. A contract gives the buyer
the right to buy or sell shares at the specified price
Buyer of an option the one who by paying price (premium) buys the
right but not the obligation to exercise his/her option on the seller/writer
Call Option gives the buyer the right but not the obligation to buy an
asset by a certain date for a certain price
Put Option gives the buyer the right but not the obligation to sell an
asset by a certain date for a certain price
Spot Price the price at which an asset trades in the spot market.
Contract Cycle the period over which the contract trades. There are
three month contracts just like the futures.
Expiry Date the date specified in the option contract. It is the last
Thursday of the month, just as in futures.
Contract Size the amount of asset that has to be delivered under one
contract.
A call option on the index is said to be ITM if the current index stands
higher than the strike price (Spot Price > Strike Price).
54
A put option is ITM if the index is below the Strike price (Spot Price <
Strike Price).
A call option on the index is said to be OTM if the current index stands at
a level which is less than the strike price (Spot Price < Strike Price).
Chapter 7
THE COMPETITORS
7.1 Major Competitors of Indiabulls Securities Ltd
55
Indiabulls Securities faces significant competition from companies seeking to
attract client financial assets, including traditional and online brokerage firms,
mutual fund companies and institutional players having wide presence and a
strong brand name. They are;
56
India Infoline Securities Pvt Ltd is a 100% subsidiary of India Infoline Ltd, which
is engaged in the businesses of Equities broking and Portfolio Management
Services. It offers broking services in the Cash and Derivatives segments of the
NSE as well as the Cash segment of the BSE.
Features of 5 paisa.com:
Paisa sense - They offer a good value for money proposition. Their brokerage
rates are very competitive, charging only 5 paise for Rs100 of trade done, which
is 0.05% brokerage. They offer the most reasonable rates, independent of your
net worth or volumes. In case of trades that result in delivery, they charge an
additional 0.20% for back office and securities handling.
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Pedigree - 5paisa.com is a brand renowned for quality of information and
services, they are professionally managed, with a skill set which is of high
standard. Their top management has years of experience in financial services
with leading banks and institutions.
Sharekhan was created when SSKI Investor Services Pvt. Ltd., a company in the
securities and equities segment decided to harness the power of the Internet
and offer services to its customers through an online stock trading portal.
Sharekhan brings and provides a user-friendly online trading facility. They also
have an extensive all-India ground network of franchisees across the country.
The company offers its services through a combination of online and offline
channels. The online model comprises a portal, chat facilities, and 'speed trade'
terminals. And the offline model uses a combination of an IVR infrastructure and
a team of customer agents to receive orders over the telephone.
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Motilal Oswal Securities Ltd. was founded in 1987 as a small sub-broking unit,
with just two people running the show. Motilal Oswal Securities Limited has
established itself as the Best Local Brokerage House in India (Asia Money
Brokers Poll 2005). Their Institutional Equities Division combines the efforts of
the Research and Sales & Trading departments to best serve clients' needs.
Consistent delivery of high quality advice on individual stocks, sector trends and
investment strategy has established them as a reliable research unit amongst
leading Indian as well as international investors.
Their sales & trading team, comprising top equity professionals, translates the
research findings into actionable advice for clients, based on their specific needs.
Sophisticated computerized tools are used to understand client investment profile
and objectives, which ensures proactive and timely service.
FEATURES
Integrity: A company honoring commitment with highest ethical and business
practices.
Team Work: Attaining goals collectively and collaboratively.
Meritocracy: Performance gets differentiated, recognized and rewarded in an
apolitical environment.
Passion & Attitude: High energy and self motivated with a Do It attitude.
Excellence in Execution: Time bound results within the framework of the
companys value system.
7.5 Karvy
59
The birth of Karvy was on a modest scale in the year 1982. It began with the
vision and enterprise of a small group of practicing Chartered Accountants based
in Hyderabad, who founded Karvy. They started with consulting and financial
accounting automation, and then carved inroads into the field of Registry and
Share Transfers. Karvy has built a reputation as an integrated financial services
provider, offering a wide spectrum of services for over 20 years.
Karvy made inroads into a host of capital-market services, - corporate and retail -
which proved to be a sound business synergy. In January 1998, Karvy became
the first Depository Participant in Andhra Pradesh.
60
Kotak Securities was set up in 1994. Kotak Securities is a corporate member of
both The Bombay Stock Exchange and the National Stock Exchange of India
Limited.
Its operations include stock broking and distribution of various financial products
- including private and secondary placement of debt and equity and mutual
funds. Currently, Kotak Securities is one of the largest broking houses in India
with wide geographical reach. The company has four main areas of business:
Institutional Equities,
Retail (equities and other financial products),
Depository Services.
Kotak Securities has 195 branches servicing more than 2, 20,000 customers and
coverage of 231 Cities. Kotaksecurities.com, the online division of Kotak
Securities Limited offers Internet Broking services and also online IPO and
Mutual Fund Investments.
61
sector reports, strategy reports and a bunch of other products including
the daily India Market Flash produced by Kotak Securities.
High Quality of software (KEAT): K.E.A.T is special software that
Koataksecurities.com provides its customers using which they can view
live market rates of scrips on both the NSE and BSE.
Intraday calls
Sectoral Reports
Stock Ideas
Derivative Reports
62
ICICI Securities, A subsidiary of ICICI Bank, was set up in February 1993 to
provide investment-banking services to investors in India. As on date ICICI Bank
holds 99.9% of the share capital of ICICI Securities.
ICICI Securities Limited is Indias leading full service investment bank with a
dominant position in all segments of its operations
Corporate Finance
Fixed Income and
Equities.
Internet Banking
Mobile Banking
ATM banking
Phone Banking
63
Chapter 8
Interdepende
nt
Segments
64
Primary Market Secondary Market
8.2 Major growth drivers for brokerage revenue and trading volume
are:
65
8.3 Parameter Assessment for Doing Competitive analysis
A differentiating aspect is a comparative assessment of the top retail brokerages
on various value indicators, comprising of
Product
Pricing
Service
Competitive analysis
66
8.4 Customers need to analyze the Brokerage Firms Based on these 5
Parameters.
Brokerage & Miscellaneous charges
Quote Software
Execution Platform
Demat Account, and finally
Back office Support.
Brokerage & Miscellaneous charges: This accounts for all the charges that
you incur for your trading/investing. A few examples would be: Demat Account
maintenance, Brokerage, Annual account Fee, Telephone based trading charges,
trading software usage charges, etc.
Quote Software: This is used mainly for technical study and for live quotes.
Many people dont evaluate quote software. Some Investors dont pay attention
to the quality of data (how accurate it is). Or how fast and often it refreshes.
Does it allow us to back test our strategy? Does it allow customizing technical
signals/parameters?? Does it allow us to see historic data? For, what period is
intra day data available? They might need all this information. They should be
clear on what they need and ensure quote software provides it all.
Execution Platform: Its nothing but a platform that allows us to execute our
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trade fast. It should automate trade management and execution, and should
automatically give protection against human errors.
Demat Account: Demat account should only be opened with a well known and
established brokerage firm in the market.
Back office Support: People while trading face lots of problem because of lack
of good back office support. Relationship Managers trading without their clients
knowledge, funds not being transferred, trades not being executed, slow
execution etc are a few examples.
68
Graph 8.2 Intraday Brokerage Charges
69
Graph 8.3 Delivery Brokerage Charges
8.6 Analyzing the Blogs from Web Site Traderji.com (online community
for Indian Investors & Traders)
70
We were interpreting the blogs written by customers, their experiences and their
review on brokerage firms.
In this web site they have conducted opinion poll on broker preferences of
customers & reasons for choosing the particular brokerage firm. In this poll
opinion, customers have shared their viewpoint about pros & cons of different
brokerage firms.
Experiences of Customers
Poll Options
71
Pie chart 8.4 showing Poll results
72
Well capitalized player, with strong banking relationships and credit
ratings
Ability to combine people and technology in unique ways
Strong market presence and increased market share leading to a virtuous
cycle of growth and Profitability.
73
De-Merits of Indiabulls Securities
You have to open a bank account with the banks mentioned in Indiabulls
site for Credit/ Debit Facility as they dont have their own bank. And In
ICICI direct , you have a direct debit/credit facility with the bank
Most customers feel that it is difficult to understand the ledger reports of
Indiabulls securities, so proper customer guidance should be given.
Lack of Banking arm
Rural market is yet to be tapped.
More importance should be given to promotions & advertisements.
74
8.8 Number of Branches of Competitors compared with Indiabulls
securities
75
8.9 Merits & De-merits of Competitors
76
maintain minimum of rs5000 in case if it is not a salaried account. (That
Rs5000 sleeps without earning any money)
Other banks account cannot be linked with the ICICI trading account.
They charge an annual maintenance charges are Rs540.
The equities research team tracks over 15 key sectors of the Indian
economy and publishes in-depth research reports every year.
ShareKhan
Merits of ShareKhan Securities
Low brokerage charges, intraday 0.1% and 0.5% for delivery.
Live streaming quotes
Customer support is good
No monthly charges
Can trade in both BSE and NSE
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De-Merits of ShareKhan Securities
No BTST (buy today sell tomorrow), in ShareKhan you cant sell a share today
which you bought yesterday.
You have to open a bank account with the banks mentioned in ShareKhan
site.
Streaming quotes requires JVM (Java Virtual Machine); this may be big
headache for customers.
Annual charges are Rs330.
Their trading terminals are certainly not for "investors", only for active
traders. That is because, you have to trade a certain volume every month,
otherwise you end up paying a fine
With the banks mentioned in ShareKhan linked with ICICI trading account
site
Can apply IPO online Can apply IPO online
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Need to maintain a minimum of
Rs 5000
Can trade in BSE & NSE Can Trade in BSE & NSE
India Infoline
Merits of India Infoline (5 Paisa.com) Securities
Low brokerage charges, intraday 0.10% and 0.50% for delivery and it is
negotiable.
Minimum brokerage per share will be 1 paisa for trading transactions and 5
paisa for delivery based transactions.
5 paisa provides 6 times margin for Intraday & 8 times margin for Delivery.
All customers will get Digital Contract Notes. Physical contract notes could
be provided on request which would entail a nominal charge.
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The information in their web based terminal is too much compressed in one
screen.
Trader terminal is good, but the interface is too complicated
Kotak Securities
Merits
They provide streaming quote software free.
Low Brokerage charges with 0.05% for Intra-day & 0.45% for delivery.
Kotak Securities will offer small-time retail investors with invest able
surpluses as low as Rs.5, 000 a chance to invest in capital markets.
Transactions are transparent with effective back office support.
They provide Simple Ledger reports, which customers feel easy to
understand than any other brokerage firms.
De-Merits
Unethical act: Geojit Securities Ltd has accused kotak securities stock
broking firm of hacking into its account to steal critical business
information and blocking information access. (Report: dated 2002, Ref:
www.domain-b.com).
Some investors have bad experience with accounts opening & they
complain that it takes a long time for opening accounts.
Some customers are not happy with customer care of Kotak securities.
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Value Proposition of Kotak Securities
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Chapter 9
9.1 STRENGTHS
Integrated technology platform: - Since the launch of their website,
www.indiabulls.com their online trading platform, they have invested in
building a technology platform. They have also developed software called
power Indiabulls. Their trader terminal is an application which allows
customers to trade on both the BSE and the NSE, has features like live
intra-day tick by tick charts, historical charts, price alerts and other
features. The features allow them to seamlessly integrate across delivery
channels, online or offline through branches or telephone.
Pan India distribution network: - They have 640 branches across
India. These branches help in customer acquisition as well as customer
service. Their distribution network is well spread to capture the target
audience and cater to the needs of their potential customers.
Relationship manager facility: - This is one of the unique services that
Indiabulls offers its customers. Every customer is provided with a
relationship manager, where in the customers can contact these
managers at anytime of the day to get information on the market or get
their queries clarified.
Growth rate: - The Company is growing at a very rapid rate, from 25
branches in the year 2003 it has grown to 650 branches in the beginning
of 2007. Not only has it seen a fast growth rate in the number of branches
but also it has grown in the number of clients and the employee strength.
They have a customer base of more than 450,000 and over 4500
relationship managers. Indiabulls has been rated as the Fastest Growing
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Large Cap Company in India in a report by Business Today magazine in
April, 2006.
Power Indiabulls has developed into brands: - Indiabulls.com and
power Indiabulls which is their software are well known brands amongst
retail investors across India. In all the cities that they have expanded into,
they have been able to leverage upon brand awareness and have
established a customer base.
Strong sales and marketing teams that deliver market leading
product innovation: - their relationship manager channel offers a single
point contact to all their retail customers. These managers offer
personalized services to their customers and help to build strong and
continuing relationships with them. The marketing associates help the
company in client acquisition at minimal cost and they also help the
company and its subsidiaries in increasing their penetration into smaller
towns and cities.
Strong banking relations and credit ratings: - Indiabulls has banking
relation with some of the major banking institutions in the country such as
HDFC Bank, ICICI Bank, Standard Chartered Bank, etc, for easy
mobilization of funds of the customers.
Strong market presence and increased market share: - Their
growing client base and market share have increased their market
presence and brand recognition has enhanced their profitability. Their
brand and profitability allows them to recruit good and efficient
employees, compensate them attractively and provides the flexibility for
them to invest in the business and technology systems these attributes in
turn has a positive effect on the growth of the company.
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9.2 WEAKNESSES
Lack of a banking arm: - Indiabulls does not have a banking arm of its
own which otherwise would have helped the company to a large extent.
Whereas a few of its competitors like HDFC securities, ICICI securities,
Kotak securities, etc have their own banking arms which make the
transactions easier and simpler.
Loss of relationship managers leads to loss of clients: - Their
business is dependent on the team of relationship managers who directly
manage client relationships. Any events that harm these relationships
including the loss of their relationship managers may lead to the loss of
client.
9.3 OPPORTUNITIES
84
virtuous cycle effect by improving the economic growth and per capita
income which would result in higher savings and investments.
85
providing all these services in a single platform. Thus Indiabulls is not
dependent on any single of its subsidiary for survival and failure of any
one subsidiary will not have an adverse effect on the company as a whole.
9.4 THREATS
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brokerage firms, mutual fund companies, etc, which are having a wide
presence and strong brand name. As the company enters new markets
their bound to face additional competition from those who have longer
operating history have grater retail and brand presence than Indiabulls. If
the company is unable to manage its business it might impede their
competitive position and their profitability.
Substitutes: - Various alternative forms of investment including fixed
deposits with banks and post offices etc act as substitutes to retail broking
products and services. The stock market is very unpredictable with
fluctuations; this may prompt many people to invest in fixed deposits,
posy office deposits, etc in order to avoid risk.
Low product differentiation: - The retail broking services provided by
the various companies are homogeneous with very low product
differentiation. This does not allow the company to freely fix their prices
due to the threat of competition, which in turn reduces their profit.
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CHAPTER 10
RESEARCH METHODOLOGY
An in depth study of the Organization's working was done. The motive was to
know the working of the Organization and why INDIA BULLS is considered as
88
number one. Current status of the competitors is considered as to analyse their
competitive situation.
3. CONDUCT SURVEY:
After finalizing the sample, who may be old or new, meetings were scheduled
and survey conducted. We contacted the Customers, fixed appointment with
them and collected data. Data obtained was then analyzed.
The collected data should be properly analysed ,so that some fruitful information
can be yield out of it. The data must then be interpreted in a manner that the
analysis may be easily presented before anyone and easy to understand.
89
TYPES OF RESEARCH:-
90
The type of research adopted to perform the project work is Descriptive
Research as the information is collected through survey by questionnaire, without
giving regards to any theory and concepts. The need of primary information
required for the project topic can be done through Descriptive Research. The
facts and information was surveyed and various fact finding enquiries of different
kinds. The description of current state of affairs in the current situation of the
stock market may be analysed.
The data colleted to conduct this type of research has been prepared from
Magazines , newspaper annual and weekly issues, books on stock exchanges.
91
Websites:-
92
METHOD AND PRINCIPLE USED:
PRIMARY INFORMATION:
To know why INDIA BULLS is standing at a reputative position among stock
exchanges and its competitive advantage. The competitor companies were also
analysed to find out their current status and how close competition exists.
SECONDARY INFORMATION:
To present the specialities of INDIA BULLS which are shown through secondary
data analysis.
The task of data collection begins after research problem has been
defined and research design /plan checked out. While deciding about the method
of data collection to be used for the study, the researcher should keep in mind
the two types of data viz. primary and secondary.
.
Primary Data
They are those which are collected a fresh and for the first time, and thus
happened to be in original in character. Data is collected by:-
-Survey
-Observation method
-Interview Methodpersonal interview, telephonic interview.
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Secondary Data
Are those which has already been collected by someone else and which have
already been past through the statisal process. Data is collected by:-
-Publications of central state and local govt.
-Publication of foreign.
-Journal
-Books, magazines and newspaper
-Reports and publication of business house
-Reports and publication of scholars and universities.
-Public records
PRIMARY
For collecting the data we used questionnaire method. The questionnaire was
design mainly of objective nature and partially of descriptive nature to get
suggestion regarding housing finance compares. We visited various government
department and business organization and also to individuals for required
information according to our Performance knowing the views of the people and
get their suggestions.
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Personal Interviews: Personal interview is the most versatile and flexible
kind of technique. Direct face-to-face conversation helps in getting
accurate data. Personal interview were done with the people in order to
get the required information.
SECONDARY
Websites.
Brochures
and Company Magazines.
CANOPY PROGRAM
The conducted a five days canopy program in which we were asked get
questionnaire filled by the individuals. The activity was conducted in groups.
Each group was allotted a definite area for its work .Every evening the response
of the day was given to the reporting officer in INDIA BULLS. The reporting officer
was Mr. Maya Sarin (Relationship Manager).
The data collected from it was of 50 persons (in round figures). The area allotted
to us was at Noida, Greater noida, and in delhi at Lakshmi nagar.The response
was good. This program enabled them as a feedback program which would help
them in further innovation and make nessary changes
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RESEARCH DESIGN
The formidable problem that follows the task of defining the research is
preparation of the design of the research project, popularly known as research
design. Decisions regarding what, where, when, how much by what means
considering an inquiry or research study constitute a research design .
Types:-
EXPLORATORY RESEARCH
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DESCRIPTIVE RESEARCH
Descriptive research studies are those studies which are concerned with
describing the characteristics if a particular individual ,or of a group.this type of
study is concerned with specific predicitions, with narration of facts and
characteristics considering individual and groups. The decision regarding what to
measure and find adequate method of measuring along with the clear cut
definition of population. As data collected, they should be examined for
completeness, comprehensibility, consistency and reliability.
This type of research design is adopted since it takes into account all the steps
involved in a survey concerning a phenomenon to be studied. This type of study
makes enough provision for protection against bias and must maximize reliability.
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SAMPLING PLAN
Research is basically depend up on the data and that data depend upon
the size of sample we want. So deciding of sample size is mainly based on the
nature of objective of the research. Sample size has to . confirm the objective on
each and every respect.Suppose we are going to decide any effective decision
on the base of this report or set up any new facts. On that position we have
require large size of sample on comparison to find out a trend.
Here our objective is simply go to "comparative analysis and make an overview
of Indian Stock Market "So we preferred to go with a sample size of only 250
data.
Systematic Sampling
In some instances , the most practical way of sampling is to select every
next item on the list. Sampling of this type is known as systematic sampling. An
element of randomness is introduced into this kind of sampling by using random
numbers to pick up the unit with which to start.
In the project the samples are drawn from different zone including 50
persons in each zone constituting 250 persons all together.
Stratified Sampling
If a population from which as ample is to be drawn does not constitute a
homogenous group stratified sampling technique is generally applied in order to
obtain a representative sampling. Under stratified sampling the poplation is
98
divided into several sub population that are individually more homogenous than
the total population (the different sub population are called STRATA and then we
select item from each stratum to constitute a sample.
In the project ,the population was selected randomly from each zone
having equal chances to be selected as a sample. The population in each zone is
called strata which includes 25 persons from each zone.
Sequential Sampling
This sampling design is somewhat complex sample design the number of sample
one more than two but it is neither certain nor decided in advance this type of
system is often referred to as sequential sampling. thus in brief we can say that
in sequential sampling one can go on taking samples one after another as long
as one desire to do so.
In the project, the samples are being surveyed in a sequential manner from
every zone.
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SAMPLE DESIGN
The selected respondents constitute what is technically called a sample and the
selection process is called sampling technique. the survey so conducted is
known as sample survey.
Researcher must prepare a sample design for his study i.e., he must plan
how a sample should be selected and of what size such a sample would be.
1. Types of universe: - The sample design is clearly define the set of objects,
technically called the universe. The total population of India is universe for INDIA
BULLS. The population of the whole country may be considered as the sampling
population.
4 Size of sample: - This refers to the number of items to be selected from the
universe to constitute a sample size. The sample size chosen by me is 125
persons, 25 persons in every zone.
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5. Sampling procedure:-It decides about the technique to be used in selecting
the items for the sample. The procedure of deciding the sample is done zone
wise.
101
Measurement and Scaling Techniques
The method used to represent the collected data is tables, graphs, charts,
pie charts, bar graphs, supported by written statement.
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Chapter 11
Tapping Rural Market: The Indian rural investors market are relatively
untapped, with only small and private firms meeting the current demand.
Indiabulls Securities can gain the First Mover Advantage over its competitors,
especially in areas were commercial crops are grown and the standard of living is
high. These people do not have much option to invest other than banks and post
offices.
Reduce the initial account opening charges: The charge for opening a
trading and demat account in Indiabulls securities is high compared to its
competitors. This influences the potential investors to open their account with
another company which provides the same at lower prices. Thus it acts as a
mental barrier for potential customers, who tend to overlook all other benefits
offered by Indiabulls. Hence Indiabulls should consider reducing their account
opening charges.
103
value proposition for large investors. It can reduce the brokerage charges for
large investors which will encourage them to invest more in the company.
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APPENDIX
Mar
Mar 2004 2005 Mar 2006
12
Rs. Crore (Non-Annualized) 12 months months 12 months
-
Income 69.48 114.59 317.97
Leasing & hire services 0 0 0
Security transactions 0.18 0 0
Dividend income 0 0.29 0
Interest income 15.36 1.93 21.16
Others 53.94 112.37 296.81
Other income 0 0 0
Non-recurring income 0.03 0.27 0.13
-
Expenditure
Loss on security
transactions 0 0.28 0.04
Other operating expenses 3.58 7.92 13.84
Personnel cost 10.72 20.88 50.24
Other expenses 11.33 13.71 21.24
Finance charges 13.97 21.48 46.7
Lease rent 2.19 3.89 3.08
Less: expenses
capitalized 0 0 0
Non-recurring expenses 0 0 0
-
Profits / losses
105
PBDT 29.91 51.28 186.85
Depreciation 1.11 2.16 6.57
PBT 28.8 49.12 180.28
Tax provision 10.79 17.89 61.06
PAT 18.01 31.23 119.22
-
Appropriation of profit
Dividends 0.7 6.14 0.62
Retained earnings 17.31 25.09 118.6
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QUESTIONNAIRE
Name of Person:
Contact Number:
E-mail Id
107
Signature
Stamp duty
Total
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CONCLUSION
Post economic liberalization in 1991 the Indian financial services industry has
experienced significant growth. Exposure to global practices has made the Indian
customer more demanding. As a result of falling interest rates, bank deposits,
other traditional investment opportunities are losing their attraction. Thus, Indian
investors are getting attracted towards alternate investments such as the Retail
Security Market and are looking for newer financial products.
As the Indian Retail Security Market is still in a nascent stage and as a lot of
potential for growth, its a very good opportunity for companies like Indiabulls to
increase their market presence. They will have to concentrate more on the
109
Research and Development and come up with strategies which are beneficial for
the company. Thus for the purpose of Applied Research Projects in the company,
they can do more research on the market and identify the major factors which
will drive the market in the future.
BIBLIOGRAPHY
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