4

5
 CHAPTER-2

INTRODUCTION OF THE TOPIC

6
 2.1 INTRODUCTION

SHARE MARKET:-

Stock market or Share market is a place where people buy or sell shares, securities

and derivatives of public companies.

Stock market is one of the important sources for a company to raise money. This

allows a company to be a public company and helps in raise the capital for the

expansion of the company by issuing the shares. Company sells the shares of

ownership in the public market.

Stock exchanges give the facilities to stock brokers to trade company stocks and other

securities. A stock may be bought or sold only if it is listed on an exchange. It is

necessary that the company is going to trade; it should register in the exchanges.

Thus, it is the meeting place of the stock buyers and sellers. India's premier stock

exchanges are the Bombay Stock Exchange and the National Stock Exchange.

Markets are two types: - 1. Primary Market

2. Secondary Market

PRIMARY MARKET:-

This is where a company gets registered to issue a certain amount of shares and raise

money. This is called getting listed in a stock exchange.

The primary market is the first step for the company to enter in the capital market

.The new securities are offered to the public first time through the primary market. By

the primary market issued securities become public .The securities have the face

value. The price at which securities is offered is called to the public is called Offer

price.

7
SECONDARY MARKET:-

The secondary market is where securities are traded after the company has sold all the

stocks and bonds offered on the primary market. We can say this is the market where

securities are traded between the investors some investors sell the securities and

others buy the securities.

On the secondary market, investors have a better chance of buying or selling

securities. Anyone can purchase securities on the secondary market as long as they are

willing to pay the price for which the security is being traded.

For the trading in the secondary market, an investor requires a broker to purchase the

securities on his or her behalf .We can say that broker is the mediator for the trading

in the security market. We have to pay the commission to the broker for buy and sell

of the securities. The price of the security fluctuates with the market.

TRADING: -

Trade in stock markets means the transfer for money of a stock or security from a

seller to a buyer. This requires these two parties to agree on a price. Equities (stocks

or shares) confer an ownership interest in a particular company.

TYPE OF TRADING:-

 Over the Counter (OTC)

 Through stock exchange

8
OTC: -

Over-the-counter (OTC) or off-exchange trading is done directly between two

parties, without any supervision of an exchange. It is contrasted with exchange

trading, which occurs via exchanges. A stock exchange has the benefit of

facilitating liquidity, mitigates all credit risk concerning the default of one party in the

transaction, provides transparency, and maintains the current market price. In an OTC

trade, the price is not necessarily published for the public.

STOCK EXCHANGE:

Stock exchange is an organization which facilitates this process of buying and selling

existing securities by providing a medium for buyers and sellers to interact with each

other. As there could be a large number of buyers and sellers who want to trade in a

particular security, stock exchanges facilitates arriving at trading price based on

supply and demand by providing a medium. They help both buyers and sellers arrive

at a mutually satisfactory price.

TWO MAJOR EXCHANGE IN INDIA:-

 BSE (BOMBAY STOCK EXCHANGE)

 NSE(NATIONAL STOCK EXCHANGE)

9
BOMBAY STOCK EXCHANGE:-

The Bombay Stock Exchange is an Indian stock exchange located at Dalal Street,

Kala Ghoda, Mumbai, and Maharashtra, India. Established in 1875, the BSE is Asia’s

first stock exchange.

CEO : Ashish Chauhan (Nov 2, 2012–)

Founder : Premchand Roychand

Founded : July 9, 1875, Dalal Street, Mumbai

Headquarters : Mumbai

HISTORY

Established in 1875, BSE (formerly known as Bombay Stock Exchange Ltd.), is

Asia's first & the Fastest Stock Exchange in world with the speed of 6 micro seconds

and one of India's leading exchange groups. Over the past 140 years, BSE has

facilitated the growth of the Indian corporate sector by providing it an efficient

capital-raising platform. Popularly known as BSE, the bourse was established as "The

Native Share & Stock Brokers' Association" in 1875. BSE is a corporatized and

demutualised entity, with a broad shareholder-base which includes two leading global

exchanges, Deutsche Bourse and Singapore Exchange as strategic partners. BSE

provides an efficient and transparent market for trading in equity, debt instruments,

derivatives, mutual funds. It also has a platform for trading in equities of small-and-

medium enterprises (SME). More than 5500 companies are listed on BSE making it

world's No. 1 exchange in terms of listed members. The companies listed on BSE

command a total market capitalization of USD 1.64 Trillion as of Sep 2015. It is also

10
one of the world's leading exchanges (5th largest in September 2015) for Index

options trading (Source: World Federation of Exchanges).

BSE also provides a host of other services to capital market participants including risk

management, clearing, settlement, market data services and education. BSE is the first

exchange in India and second in the world to obtain an ISO 9001:2000 certifications.

It is also the first Exchange in the country and second in the world to receive

Information Security Management System Standard BS 7799-2-2002 certification for

its On-Line trading System (BOLT). It operates one of the most respected capital

market educational institutes in the country (the BSE Institute Ltd.). BSE also

provides depository services through its Central Depository Services Ltd. (CDSL)

arm. BSE's popular equity index - the S&P BSE SENSEX .

SENSEX

It is an index of the stocks in BSE (Bombay Stock Exchange). Sensex has a list of 30

stocks. It is the index of top 30 company registered in the BSE. The criteria for

picking a stock to be listed on Sensex are volume of the trade of that stock and total

volume of the stock in BSE. These 30 stocks which will be together called as

SENSEX. If the Sensex goes up, it means that the prices of the stocks of most of the

major companies on the BSE have gone up. If the Sensex goes down it means prices

have gone down.

11
NATIONAL STOCK EXCHANGE (NSE):-

The National Stock Exchange of India Limited is the leading stock exchange of

India, located in Mumbai. NSE was established in 1992 as the first demutualized

electronic exchange in the country.

CEO : Chitra Ramkrishna (Apr 1, 2013)

Headquarters : Mumbai

Customer service : 1800 22 0051

Founded : 1992, Mumbai

The National Stock Exchange is the India’s largest stock exchange covering

various cities and towns across the country. NSE was set up by leading institutions

to provide a modern, fully automated screen-based trading system with national

reach. The Exchange has brought about unparalleled transparency, speed &

efficiency, safety and market integrity. It has set up facilities that serve as a

model for the securities industry in terms of systems, practices and procedures.

The NSE India is situated in Mumbai, the financial capital of India..

In 1994, the National Stock Exchange of India (NSE) functioned as a platform for

securities exchange. The NSE India exchanges many different securities, such as

equity, corporate debt, central and state government securities, commercial paper, and

12
The National Stock Exchange of India (NSE) is one of the most important and

most advanced stock markets in India, and, in terms of transactions, it is the third

largest stock exchange in the World.

certificates of deposit. At present, 1000 members are enrolled on the NSE, and it is

the owner of different financial and insurance institutions. There are three market

segments to the NSE: wholesale debt, capital market (automatic screen-based dealing

system), and futures and options (derivatives). History and Origin of The National

Stock Exchange of India In November 1992, the NSE was integrated as a tax-paying

company and at the command of the Government of India, top financial institutions

were promoted it.

In April 1993, under the Securities Contracts (Regulation) Act, 1956, the NSE was

known as a stock exchange. In June 1994, the NSE started operations in the

Wholesale Debt Market (WDM) segment and in November 1994, the Capital Market

(Equities) segment of the NSE started operations.

In 1996, the NSE was the first exchange in India that planned to trade derivatives

specifically on an equity index. In February 2000, the NSE started an Internet trading

system.

NIFTY

It was coined for the two words ‘National’ and ‘FIFTY’. The word fifty is used

because; the index consists of 50 actively traded stocks from various sectors. NIFTY

is also known as CNX NIFTY or NIFTY 50. Nifty is owned and managed by India

Index Services and Products (IISL), which is a wholly owned subsidiary of the NSE

Strategic Investment Corporation Limited. NIFTY is made up of fifty companies from

24 different sectors. ”

13
 2.2 RELEVANCE OF THE STUDY

 With the ongoing revolution in the Indian Capital Market where new

Techniques and Developments are taking place at the blink of an eye, the

people are now concentrating on investment. Nowadays everyone wants to

invest his saving in such a way to get maximum return at minimum risk.

 Indian Security Market is on the boom and increasing day by day so peoples

are investing their money in the share market.

 Investors are using online trading facility for investing in the share market. So

for this purpose investors need Trading account. It is important to know about

the terminology of the Trading account.

14
 2.3 RELATED CONCEPTS

BUYING AND SELLING PROCEDURE:-

To sell buy and sell the securities on the stock exchange following steps take place:-
1. Placing an order. 6. Clearing function.

2. Execution of order. 7. Exchange between broker and

3. Reporting of the trade. client.

4. Confirmation.

5. Exchange between client and

broker.

BUYING AND SELLING STEPS OF SHARES

Step-1

Investors place an order with the broker as per his investment decision. In online

trading system client can see the shares rates of every company which is registered in

the stock exchange on the computer terminal of the broking firm or by the DMAT

account and then places the order.

Step-2

Investors can place the order by two type market order or limit order. In the limit

order investor specify a price at which order is to be execute by the broking firm in

the market on the other hand market order is the order client does not specify the

price. In this situation broker execute the order at the market price of the share.

15
Step-3

As order of the investor match with the order placed by some other investor the order

gets executed and become a trade.

Step-4

In the online trading system executed order, i.e. trade is communicated by the system

to the respective brokers and broker then confirms the trade to his clients.

Step-5 When the order executed with the convention of ‘T+2’(Trading and next two

days)then on the day of the trade buyer is required to pay the money to his broker

seller is required to deliver the cheque of his beneficiary a/c so as to execute the

settlement between the broker and its clients.

Step-6 After day of the trade is pay in day on this day buying broker has to pay

money of the trade and selling broker is to deliver the shares in his clearing depository

account. The same day is the pay-out -day accordingly buying broker receives shares

in his clearing depository a/c and selling broker receives money in his clearing bank

account.

16
Step-7 After the pay-out buying broker has the responsibility to deliver the shares in

the beneficiary account of buyer and selling broker has the responsibility to make the

payment to seller.

2.4 SOME OPERATIONAL DEFINATION

Depository: -

A depository is an organization which holds securities of investors in electronic form

at the request of the investors through a registered Depository Participant. It also

provides services related to transactions in securities.

Depository Participants: -

These are describing as the agent of the depository through which we can interface

with investors. They are the intermediaries between the depository and the investors.

A DP can offer depository services only after it gets proper registration from SEBI.

Banking services can be availed through a branch whereas depository services can be

availed through a DP.In India there are two depository participants:-

1. NSDL

2. CDSL

NSDL and CSDL: -

They hold the securities in the electronically form, securities like shares,

Debentures, bonds etc. When we buy the securities they are automatically credited

by the depository and if sell the securities then it is debited from the depository. If

17
any company needs to know about to send the dividends or any other notifications

can be done by two depositories.

NSDL is National Securities Depository Limited. It deals with National Stock

Exchange (NSE).

CDSL is Central Depository Services Limited. It deals with Bombay Stock

Exchange (BSE).

They are electronic depositories to hold all the securities electronically in de-

materialized format.

TRADING ACCOUNT AND DEMAT ACCOUNT:-

When a company become listed on the stock market and its shares become

available for trading on the stock exchange. Earlier, the exchange had an open-

outcry system. After the NSE exchange of the shares become electronically.

For the exchange of the share we need to open the trading account, without this we

cannot trade in stock market. We have to register for this with a stock broker. Each

account comes with a unique trading ID, which is used for conducting transactions.

A trading account is used to place buy or sell orders in the stock market. The demat

account is used as a bank where shares bought are deposited in, and where shares

sold are taken from.

INTIAL PUBLIC OFFERING:-

IPO represents that a company is going first time to sell its shares to public. It is

the process by which companies go from private to public and sell stock shares.

IPO’s issued by a smaller or younger companies seeking the capital to expand but

it can be done by a larger company if company want to be a public company. This

18
process is to raise funds and have more liquidity or cash on hand by selling shares

publicly. The money can be used in various ways, like reinvesting in the

company’s infrastructure.

FREE FLOAT:-

That’s the total number of shares available for the public to trade in the market. It

excludes shares held by promoters, governments or trusts, FDIs etc.

To find the free float market value, the total value of the company (total shares x

market price) is further multiplied by a free float market value factor, which is

nothing but the percentage of free float shares of a particular company. So

logically, the company which has more public holding will have the highest free

float factor in the Sensex. This equalizes everything.

Example- let’s assume that the market value of a company is Rs 100,000 Crore and

it has 100 Crore shares having a value of Rs 1,000 each but only 20% of it are

available to the public for trade. The free float factor would be 20/100 or 0.20 and

the free float market value would be .20 x 100,000 = 20,000 Crore.

SOME TERMINOLOGY RELATED TO TRADING:-

1 Market order:-

It is an order to buy or sell the securities at the price prevailing in the market. Buy

and sell of the securities at best available price.

2 Limit order: -

In this type of the order investor specify the price of the securities at which the

order to be executed by broker in the market. These price are the minimum

19
acceptable price in the case of the sales order and in the case of the purchase order,

it is the maximum acceptable price.

3 Net price:-

It is the price, which is obtained after making an adjustment of brokerage to the

market price. It is the final price to be paid or received by the client or investor.

4 Stop loss order:-

An order placed with a broker to sell a security when it reaches a certain price. It is

given by the client to eliminate a loss at the certain level. This type of order is

places when investor wants to minimize the risks at certain level, if the market at

the adverse movement.

5 Good till day order:-

It is the order, which is valid for execution only on the day of placing the order and

if it is not executed become cancelled automatically by the end of the day.

6 Good till date order (GTD):-

It is the order, which is valid for execution till the date mentioned in the order and

it gets cancelled after the mentioned date.

7 Good till cancelled order (GTC):-

It is the order which valid till the time it is cancelled by the client.

20
8 Immediate or cancel order (IOC):-

It is a conditional request made to the broker (or the system) to execute the

transactions immediately or to cancel it.

It may be market order then the transaction will be done immediately if the number

of the shares in demand is available. If the no. of the shares is not available then

orders become cancelled.

It may be a limit order then transaction will be done immediately if the required

number of the shares is available at the required price, if not then order become

cancels.

9 Fill or kill order:-

This is the request to the broker or the system to execute the transaction if the full

required quantities of the shares are available otherwise cancelled the order.

10 All or None order:-

It is the conditional request to the broker or the system to or sell the required

number of the shares at the particular price, the price which is given by the

investor ,only if full quantity of shares are available.

11 Short Sell: -

This is the type of selling in which sale of the security that is not owned by the

seller, or seller has borrowed the securities. In this investors sell the securities at

high price and have the believe that the price of the securities will be decline and

they buy these securities at low price and give it to back. .

21
 2.5 SAFE MODE IN STOCK MARKET

1 MUTUAL FUND

2 IPO

These are the two safe modes ,where the chance of risk is less then equity market,with

a high rate of return.

MUTUAL FUND-

DEFINITION-

Definition: A mutual fund is a professionally-managed investment scheme, usually

run by an asset management company that brings together a group of people and

invests their money in stocks, bonds and other securities.

DESCRIPTION- As an investor, you can buy mutual fund 'units', which basically

represent your share of holdings in a particular scheme. These units can be purchased

or redeemed as needed at the fund's current net asset value (NAV). These NAVs keep

fluctuating, according to the fund's holdings. So, each investor participates

proportionally in the gain or loss of the fund.

All the mutual funds are registered with SEBI. They function within the provisions of

strict regulation created to protect the interests of the investor.

The biggest advantage of investing through a mutual fund is that it gives small

investors access to professionally-managed, diversified portfolios of equities, bonds

and other securities, which would be quite difficult to create with a small amount of

capital.

22
 HISTORY OF MUTUAL FUND

The first modern investment funds (the precursor of today's mutual funds) were

established in the Dutch Republic. In response to the financial crisis of 1772–1773,

Amsterdam-based businessman Abraham (or Adriaan) van Ketwich formed a trust

named Eendragt Maakt Magt ("unity creates strength"). His aim was to provide small

investors with an opportunity to diversify.

Mutual funds were introduced to the United States in the 1890s. Early U.S. funds

were generally closed-end funds with a fixed number of shares that often traded at

prices above the portfolio net asset value. The first open-end mutual fund with

redeemable shares was established on March 21, 1924 as the Massachusetts Investors

Trust. (It is still in existence today and is now managed by MFS Investment

Management.)

In the United States, closed-end funds remained more popular than open-end funds

throughout the 1920s. In 1929, open-end funds accounted for only 5% of the

industry's $27 billion in total assets.

After the Wall Street Crash of 1929, the U.S. Congress passed a series of acts

regulating the securities markets in general and mutual funds in particular.

 The Securities Act of 1933 requires that all investments sold to the public,

including mutual funds, be registered with the SEC and that they provide

prospective investors with a prospectus that discloses essential facts about the

investment.

 The Securities and Exchange Act of 1934 requires that issuers of securities,

including mutual funds, report regularly to their investors; this act also created the

23
 Securities and Exchange Commission, which is the principal regulator of mutual

funds.

 The Revenue Act of 1936 established guidelines for the taxation of mutual funds.

 The Investment Company Act of 1940 governs the mutual funds.

These new regulations encouraged the development of open-end mutual funds (as

opposed to closed-end funds.)

Growth in the U.S. mutual fund industry remained limited until the 1950s, when

confidence in the stock market returned. By 1970, there were approximately 360

funds with $48 billion in assets.

 The introduction of money market funds in the high interest rate environment of

the late 1970s boosted industry growth dramatically. The first retail index fund,

First Index Investment Trust, was formed in 1976 by The Vanguard Group,

headed by John Bogle; it is now called the "Vanguard 500 Index Fund" and is one

of the world's largest mutual funds. Fund industry growth continued into the

1980s and 1990s.

 According to Pozen and Hamacher, growth was the result of three factors:

 A bull market for both stocks and bonds.

 New product introductions (including funds based on municipal bonds, various

industry sectors, international funds, and target date funds) and.

 Wider distribution of fund shares, including through employee-directed retirement

accounts such as 401(k) and other defined contribution plans and individual

retirement accounts (IRAs.) Among the new distribution channels were retirement

plans. Mutual funds are now the preferred investment option in certain types of

fast-growing retirement plans, specifically in 401(k) and other defined

24
 contribution plans and in individual retirement accounts (IRAs), all of which

surged inpopularity in the 1980s.

 In 2003, the mutual fund industry was involved in a scandal involving unequal

treatment of fund shareholders. Some fund management companies allowed

favoured investors to engage in late trading, which is illegal, or market timing,

which is a practice prohibited by fund policy. The scandal was initially discovered

by former New York Attorney General Eliot Spitzer and led to a significant

increase in regulation.

 Total mutual fund assets fell in 2008 as a result of the financial crisis of 2007–

2008.

 Mutual funds today

 At the end of 2016, mutual fund assets worldwide were $40.4 trillion, according

to the Investment Company Institute. The countries with the largest mutual fund

industries are:

 United States: $18.9 trillion

 Luxembourg: $3.9 trillion

 Ireland: $2.2 trillion

 Germany: $1.9 trillion

 France: $1.9 trillion

 Australia: $1.6 trillion

 United Kingdom: $1.5 trillion

 Japan: $1.5 trillion

 China: $1.3 trillion

 Brazil: $1.1 trillion

25
 In the United States, mutual funds play an important role in U.S. household

finances. At the end of 2016, 22% of household financial assets were held in

mutual funds. Their role in retirement savings was even more significant, since

mutual funds accounted for roughly half of the assets in individual retirement

accounts, 401(k)s and other similar retirement plans. In total, mutual funds are

large investors in stocks and bonds.

 Luxembourg and Ireland are the primary jurisdictions for the registration

of UCITS funds. These funds may be sold throughout the European Union and in

other countries that have adopted mutual recognition regimes.

 Advantages and disadvantages to investors

 Mutual funds have advantages and disadvantages compared to investing directly

in individual securities:

 Advantages

 Increased diversification: A fund diversifies holding many securities;

this diversification decreases risk.

 Daily liquidity: Shareholders of open-end funds and unit investment trusts may

sell their holdings back to the fund at regular intervals at a price equal to the net

asset value of the fund's holdings. Most funds allow investors to redeem in this

way at the close of every trading day.

 Professional investment management: Open-and closed-end funds hire portfolio

managers to supervise the fund's investments.

 Ability to participate in investments that may be available only to larger investors.

For example, individual investors often find it difficult to invest directly in

foreign markets.

 Service and convenience: Funds often provide services such as check writing.

26
 Government oversight: Mutual funds are regulated by a governmental body

 Transparency and ease of comparison: All mutual funds are required to report the

same information to investors, which makes them easier to compare

 Disadvantages

 Mutual funds have disadvantages as well, which include:

 Fees

 Less control over timing of recognition of gains

 Less predictable income

 No opportunity to customize

27
HOW TO APPLY MUTUAL FUND THROUGH SHAREKHAN LTD

GO TO HOME PAGE OF SHAREKHAN

MUTUAL FUND

ORDER PLACEMENT

SIP

SELECT THE MUTUAL FUND SCHEME

BUY

28
IPO ( INTIAL PUBLIC OFFERING)

Meaning

IPO refers to initial public offering which means company raise fund initially through

the public and give greater return as compared to others source of investment, but

some ipos are listed less then its offer price . These IPO is not alloted to everyone ,it

depends on the company's condition , may be the company follow the first comes first

gain process or its decided ratio or others condition

If someone apply the ipo and he get the ipo then he is a lucky one person because his

money going to be almost double ,most of the ipo listed at higher price from his share

price of allotment

An initial public offering (IPO) is the first time that the stock of a private company is

offered to the public. IPOs are often issued by smaller, younger companies seeking

capital to expand, but they can also be done by large privately owned companies

looking to become publicly traded. In an IPO, the issuer obtains the assistance of

an underwriting firm, which helps determine what type of security to issue, the

best offering price, the amount of shares to be issued and the time to bring it to

market.

EXAMPLE FOR IPO

If a company launch its ipo on and company decide a issue open time is 1st august to

3rd august , then the investors have to apply from 1st august to 3rd august and

company makes clear about its lot size , minimum order quantity and other

information related to ipo

29
LIKE-COCHIN SHIPYARD LTD

Company Financials:

Summary of financial Information (Consolidated)

Particulars For the year/period ended (in Rs. Million)

31-Mar-17 31-Mar-16 31-Mar-15

Total Assets 33,164.37 33,488.61 28,912.85

Total Revenue 22,085.01 20,968.81 16,604.52

Profit After Tax 3,121.82 2,917.52 692.82

Objects of the Issue:

Company proposes to utilize the Net Proceeds towards funding of the following

objects:

1. Setting up of a new dry dock within the existing premises of the Company (“Dry

Dock”).

2. Setting up of an international ship repair facility at Cochin Port Trust area

(“ISRF”).

3. General corporate purposes.

30
Issue Detail:

»» Issue Open: Aug 1, 2017 - Aug 3, 2017

»» Issue Type: Book Built Issue IPO

»» Issue Size: 33,984,000 Equity Shares of Rs 10 aggregating up to Rs 1,468.11

Cr

› Fresh Issue of 22,656,000 Equity Shares of Rs 10 aggregating up to Rs [.] Cr

› Offer for Sale of 11,328,000 Equity Shares of Rs 10 aggregating up to Rs [.]

Cr

»» Face Value: Rs 10 Per Equity Share

»» Issue Price: Rs 424 - Rs 432 Per Equity Share

»» Market Lot: 30 Shares

»» Minimum Order Quantity: 30 Shares

»» Listing At: BSE, NSE

31
 LIST OF IPOS

Table 1

Company Name Listing Offer Price Current Gain/Loss

Date (in ₹) Price %

(in ₹)

10-07-
AU Small Fin. Bank 358.00 558.80 56.09% 56.09%
2017

29-05-
PSP Projects 210.00 315.40 50.19% 50.19%
2017

Housing & Urban 19-05-

60.00 81.50 35.83% 35.83%
Dev. 2017

09-05-
S Chand And Co 670.00 487.30 -27.27% -27.27%
2017

05-04-
Shankara Bldg. Prod 460.00 1004.20 118.30% 118.30%
2017

31-03-
CL Educate 502.00 390.00 -22.31% -22.31%
2017

21-03-
Avenue Supermarts 299.00 897.90 200.30% 200.30%
2017

32
 17-03-
Music Broadcast 333.00 351.15 5.45% 5.45%
2017

19-12-
Laurus Labs 428.00 575.30 34.42% 34.42%
2016

09-12-
Sheela Foam 730.00 1268.25 73.73% 73.73%
2016

08-11-
Varun Beverages Ltd. 445.00 497.00 11.69% 11.69%
2016

07-11-
PNB Housing Finance 775.00 1440.25 85.84% 85.84%
2016

19-10-
Endurance Tech 472.00 916.25 94.12% 94.12%
2016

04-10-
BSLRIFS3RG 202.00 123.15 -39.03% -39.03%
2016

29-09-
ICICI Prudential 334.00 440.15 31.78% 31.78%
2016

26-09-
GNA Axles 207.00 260.95 26.06% 26.06%
2016

33
L&T Technology 23-09-
860.00 739.05 -14.06% -14.06%
Serv. 2016

31-08-
RBL Bank 225.00 517.20 129.87% 129.87%
2016

12-08-
SP Apparels 268.00 445.00 66.04% 66.04%
2016

TABLE -2

11-08-
Dilip Buildcon 219.00 527.90 141.05% 141.05%
2016

01-08-
Advanced Enzyme 896.00 314.55 -64.89% -64.89%
2016

21-07-
L&T Infotech 710.00 778.75 9.68% 9.68%
2016

12-07-
Quess Corp 317.00 892.60 181.58% 181.58%
2016

01-07-
Mahanagar Gas 421.00 1009.10 139.69% 139.69%
2016

34
 19-05-
Parag Milk Foods 215.00 252.70 17.53% 17.53%
2016

10-05-
Ujjivan Financial 210.00 308.95 47.12% 47.12%
2016

Thyrocare 09-05-
446.00 717.00 60.76% 60.76%
Technologies 2016

21-04-
Equitas Holdings 110.00 161.35 46.68% 46.68%
2016

04-04-
Infibeam Incorporpn. 432.00 1399.95 224.06% 224.06%
2016

01-04-
Bharat Wire Ropes 45.00 98.30 118.44% 118.44%
2016

30-03-
HealthcareGlobal 218.00 271.00 24.31% 24.31%
2016

18-02-
Quick Heal Tech 321.00 208.10 -35.17% -35.17%
2016

12-02-
TeamLease Services 850.00 1424.00 67.53% 67.53%
2016

35
 08-02-
Precision Camshafts 186.00 122.00 -34.41% -34.41%
2016

06-01-
Narayana Hrudayalay 250.00 298.00 19.20% 19.20%
2016

23-12-
Alkem Laboratories 1050.00 1790.00 70.48% 70.48%
2015

23-12-
Dr Lal Pathlabs 550.00 822.00 49.45% 49.45%
2015

16-11-
SH Kelkar & Co 180.00 267.25 48.47% 48.47%
2015

10-11-
Interglobe Aviation 765.00 1275.95 66.79% 66.79%
2015

36
 TABLE 3

Company Name Listing Offer Current Gain/Loss

Date Price Price %

(in ₹) (in ₹)

02-11-
Coffee Day Enter. 328.00 243.00 -25.91%
2015

21-09-
Prabhat Dairy 115.00 133.90 16.43%
2015

16-09-
Sadbhav Infra. Proj 103.00 102.95 -0.05%
2015

10-09-
Pennar Engineered 178.00 122.00 -31.46%
2015

10-09-
Shree Pushkar Chem 65.00 229.95 253.77%
2015

09-09-
Navkar Corporation 155.00 200.00 29.03%
2015

26-08-
Power Mech Projects 640.00 585.00 -8.59%
2015

37
Company Name Listing Offer Current Gain/Loss

Date Price Price %

(in ₹) (in ₹)

11-08-
Syngene International 250.00 473.85 89.54%
2015

09-07-
Manpasand Beverages 320.00 787.60 146.13%
2015

26-05-
PNC Infratech 378.00 140.45 -62.84%
2015

14-05-
UFO Moviez 625.00 365.15 -41.58%
2015

06-05-
MEP Infrastructure 63.00 111.00 76.19%
2015

30-04-
VRL Logistics 205.00 325.35 58.71%
2015

09-04-
Inox Wind 325.00 135.20 -58.40%
2015

38
Company Name Listing Offer Current Gain/Loss

Date Price Price %

(in ₹) (in ₹)

06-04-
Adlabs Entertainment 180.00 62.95 -65.03%
2015

19-03-
Ortel Communications 181.00 39.45 -78.20%
2015

19-12-
Monte Carlo Fashions 645.00 484.10 -24.95%
2014

Shemaroo 01-10-
170.00 360.75 112.21%
Entertainment 2014

23-09-
Sharda Cropchem 156.00 456.20 192.44%
2014

12-09-
Snowman Logistics 47.00 53.95 14.79%
2014

39
 TABLE 4

Company Name Listing Offer Current Gain/Loss

Date Price Price %

(in ₹) (in ₹)

09-05-
Wonderla Holidays 125.00 350.00 180.00%
2014

22-04-
R&B Denims 10.00 38.00 280.00%
2014

21-04-
Womens Next 65.00 53.90 -17.08%
2014

03-04-
Oceanaa Biotek 10.00 50.00 400.00%
2014

06-03-
Siddhi Vinayak Ship. 25.00 52.00 108.00%
2014

28-02-
Unishire Urban 10.00 5.78 -42.20%
2014

Polymac 26-02-
35.00 32.80 -6.29%
Thermoformer 2014

40
Company Name Listing Offer Current Gain/Loss

Date Price Price %

(in ₹) (in ₹)

Agrimony 18-02-
10.00 4.00 -60.00%
Commodities 2014

31-01-
Chemtech Industrial 15.00 18.00 20.00%
2014

22-01-
Suyog Telematics 25.00 395.00 1480.00%
2014

21-01-
RCI Industries&Tech 40.00 167.40 318.50%
2014

31-12-
Tentiwala Metal 13.00 6.00 -53.85%
2013

19-12-
Power Grid Corpn. 90.00 221.50 146.11%
2013

11-12-
Captain Polyplast 30.00 170.00 466.67%
2013

41
Company Name Listing Offer Current Gain/Loss

Date Price Price %

(in ₹) (in ₹)

01-11-
Stellar Capital 20.00 7.31 -63.45%
2013

31-10-
Amrapali Cap. & Fin 100.00 29.00 -71.00%
2013

29-10-
SRG Securities 20.00 21.15 5.75%
2013

23-10-
VCU 25.00 15.70 -37.20%
2013

22-10-
Subh Tex 10.00 15.70 57.00%
2013

17-10-
Newever Trade 10.00 2.16 -78.40%
2013

42
 TABLE 5

Company Name Listing Offer Current Gain/Loss

Date Price Price %

(in ₹) (in ₹)

18-07-
VKS Projects 55.00 0.04 -99.93%
2012

13-07-
Max Alert Systems 20.00 4.62 -76.90%
2012

Looks Health 30-05-

40.00 14.60 -63.50%
Service 2012

30-05-
Speciality Restauran 150.00 114.70 -23.53%
2012

Tribhovandas 09-05-
120.00 106.50 -11.25%
Bhimji 2012

12-04-
MT Educare 80.00 67.45 -15.69%
2012

12-04-
NBCC (India) 100.70 216.70 115.19%
2012

43
Company Name Listing Offer Current Gain/Loss

Date Price Price %

(in ₹) (in ₹)

28-03-
Olympic Cards 30.00 14.00 -53.33%
2012

13-03-
Pyxis Finvest 25.00 29.00 16.00%
2012

Multi Commodity 09-03-

1032.00 1105.00 7.07%
Exch 2012

02-11-
Indo Thai Securities 74.00 42.15 -43.04%
2011

24-10-
Vaswani Industries 49.00 14.25 -70.92%
2011

20-10-
Ujaas Energy 186.00 25.75 -86.16%
2011

19-10-
Flexituff Internatl. 155.00 87.00 -43.87%
2011

44
Company Name Listing Offer Current Gain/Loss

Date Price Price %

(in ₹) (in ₹)

17-10-
Onelife Capital 110.00 20.90 -81.00%
2011

14-10-
Tijaria Polypipe 60.00 8.19 -86.35%
2011

07-10-
RDB Rasayans 79.00 57.45 -27.28%
2011

04-10-
Prakash Constrowell 138.00 3.90 -97.17%
2011

26-09-
PG Electroplast 210.00 337.85 60.88%
2011

16-09-
SRS 58.00 3.01 -94.81%
2011

45
46
 HOW TO APPLY FOR IPO

Those investors who want to invest in IPO or to apply for IPO they must have a

internet banking.

Lets take a example of an SBI bank

A investors have to first login to sbi and then follow the steps for applying the

initial public offering

PROCESS OF IPO

HOME PAGE

E-SERVICES

DEMAT AND ASBA SERVICES

IPO EQUITY

APPLY IPO

47
 2.6 Understand the process of trading in share market.

Adroit’s account Login Page

Fig 2.6.1

Account holder has to fill the Login I’d, Membership password & Trading password

to open the account. Adroit provide the security to the account, investor has to change

the membership password after open the account and it keep on changing after

14 days.

48
49
Account’s Home Page

Fig
2.6.2

When investor login the account then he has to fulfill the details to verify and gmail

I’d and mobile number have to verify. When we open the account first time then

we receive the verification call from Adroit’s head office.

50
 2.6 Understand the process of trading in share market.

Adroit’s account Login Page

Fig 2.6.1

Account holder has to fill the Login I’d, Membership password & Trading password

to open the account. Adroit provide the security to the account, investor has to change

the membership password after open the account and it keep on changing after

51
14 days.

52
Account’s Home Page

Fig 2.6.2

When investor login the account then he has to fulfill the details to verify and gmail

I’d and mobile number have to verify. When we open the account first time then we

receive the verification call from Adroit’s head office.

53
54
CHAPTER 3
OBJECTIVES

55
 Objectives:-

 To gain the knowledge of share market & understand the trading process of

Adroit.

 To identify the customer satisfaction level with Adroit.

 To gain the knowledge of safe mode investment.

56
 CHAPTER4

RESEARCH METHODLOGY

57
 RESEARCH METHODLOGY

UNIVERSE:

Finite

4.1 Sample Design

4.2 Sample Size

4.3 Selection Sampling

4.4 Sample Unit: Employees of Adroit ltd.(Dehli)

Sample Design:-Descriptive sample design.

Descriptive Design, it is the valid method for the specific subject. This design

used in social sciences and business field. It is all about describing the people who

take part in the study. It may be quantitative or qualitative. It is usually based on

survey method (On the basis of questionnaire and interview).

Sample Size:-Sample size is 100.

Selection Sample:-Convenience sampling.

Convenience Sampling, It is the non probability sampling. This method relies on

the population who are conveniently available to the participant of the study. This

sampling is used to collect the primary data. This sampling is done on those people

who are easy to reach.

In this study questionnaire is used to collect the data. Questionnaire filled by the

people who came to the Sharekhan’s office for their work.

58
Data collection & Data sources: -

Two type of the Data collected primary data and secondary data.

Primary Data

Secondary Data

Primary Data: -

The primary data are those data which are collected first time and collected for the

project especially through Questionnaire, Survey, observations and interviews. A

Questionnaire consists of number of questions related to the research and that are

asked to the respondents. It is original data collected by the researcher personally.

Primary data sources include company salesman, consumers, buyers, competitors etc.

This data collected by researcher himself.

Secondary Data: -

The secondary data are those data which is collected by someone else and already

collected by other person. These are generally published sources, which have been

collected by other for some other purpose. Source can be internal company records,

government publication, publication reports, journal, business association publications

and reports. It is more useful because it is collected by the experts.

Tools used for data collection:-

Primary data is collected through the questionnaire, observation, personal

interaction.

Secondary data is collected through the websites, magazines, etc..

59
 CHAPTER 5

Data Analysis & Interpretation

60
Q1. Have you any Demat account?

20%

yes
no

80%

Fig 5.1

Interpretation:

From the above pie chart it is clear that , 80% people have the demat account and 20%people

have not the demat account, we can say that most of the people are aware about the Demat

account.

61
Q2. Have you invested in share market?

Yes No

10%

90%

Fig 5.2

Interpretation:

From the above pie chart, it is clear that 90% people have invested their money in

share market and only 10% peoples have not invested in share market. These people

may be invested their money in Mutual Funds, Commodity and Currency.

62
Q3. In which mode do you trade ?

Online Offline

2%

98%

Fig 5.3

Interpretation: From the above pie chart 98% investors do online trading and

only 2% investors do offline trading. So we can say that nowadays investors

prefer online trading.

63
Q4. How do you trade in share market?

Intraday Delivery

44%

56%

Fig 5.4

Interpretation:

From the pie chart 56% investor do intraday trading & 44% investor do delivery. So it

has been analysed that maximum no. Of investor do intraday trading.

64
Q5. if you have not invested your money in share market then why?

Not aware about the share market

Higher risk
Not specific reason

10%
20%

70%

Fig 5.5

Interpretation:

From the above Pie chart it is clear that 70% people have not invested their money

in share market due to the high risk, 20% have not invested because they are not

aware about the share market and 10% people has not any specific reason.

65
Q6. Do you aware about Mutual funds?

15%

Yes
No

85%

Fig 5.6

Interpretation:

From the above pie chart, it is clear that 85% people are aware about the mutual

fund and 15% people are not aware about the mutual fund, we can say that 85% of

people are aware and they want to invest in mutual fund.

66
Q7. Do you aware about IPO?

Yes
No

40%
60%

Fig 5.7

Interpretation:

From the above pie chart it is clear that 60% people are aware about the IPO and

40% people are not about the IPO, we can say that people are less aware about IPO.

67
 Q8. Where do you invest your money ?

20% 10%
40%

Bank FD
Mutual Fund
Equity
Insurance
10% Others

20%

Fig 5.8

Interpretation:

This above pie chart mention that 40% people wants to invest in Bank FD because

there is zero % risk, in mutual fund 20% people wants to invest ,and 10% in

equity,20% in insurance and 10% in other,like gold , property etc.

68
Q9. What percentage of your earning you invest?

5%-10% 10%-25% 25%-50% more then this

10% 2%

32% 56%

Fig 5.9

Interpretation:

From the above pie chart it is clear that 56% investor invest 5-10% of their income in

share market, 32% investor invest 10-25% of their earning, 10% investor invest 25-

50% of their earning & only 2% investor invest more than 50% of their earning. We

can say that people are interested in trading in equity market and they are investing

their money.

69
 10. How much you aware about online trading?

10%
40%

20%

Fully
Almost
Less
Neutral

30%

Fig 5.10

Interpretation:

Above pie chart say that 40% people are fully aware about online trading, and 30%

people are almost aware about online trading , but 10% people are less aware and

20% are neutral, we can say that people wants to no about the online trading.

70
Q11.Which factor motivate you most in share market?

Return Liquidity Safety

10%

36% 54%

Fig 5.11

Interpretation:

From the above pie chart it is clear that 54% investor invest their money in

share market due to the high return, 36% investor invest their money due to

the liquidity and 10% due to the safety of the money.

71
 Q12. Are you satisfied with your investment in share market ?

Fully satisfied satisfied less satisfied Not satisfied

10%

40%
20%

30%

Fig 5.12

Interpretation:

From the above pie chart 40% investors are fully satisfied from the investment in the

stock market, 30% investors are satisfied, 20% are less satisfied and 10% are not

satisfied with the investment in the equity market.

72
Q13.What is your satisfaction level with brokerage of sharekhan?

Highly Dissatisfied Dissatisfied Neutral

Satisfied Highly satisfied

2%

26%

44%

4%

24%

Fig 4.13

Interpretation:

From the above pie chart it is clear that 44% investors are highly satisfied, 26% are

dissatisfied, 24% are satisfied, 4% are neutral, only 2% are highly dissatisfied with the

brokerage of the firm. We can say that investors are satisfied with the brokerage of the

broking firm.

73
Q14. How much you satisfied with sharekhan services?

Highly Dissatisfied Dissatisfied Neutral

Satisfied Highly satisfied

2% 6%
8%

56%
28%

Fig 4.14
Interpretation:

From the above pie chart we can say that 56 % investors are highly satisfied with the

broking firm, 28% are satisfied, 8% are neutral, 6% are dissatisfied and only 2% are

highly dissatisfied with the broking firm. We can say that most of the investors are

satisfied with the broking firm.

74
CHAPTER-6

FINDINGS

75
 FINDINGS

 This study shows that most of the people have demat account.

 This study shows that 90% of the people of sample size have invest money in

share market.

 It shows that 98% of the respondents are doing online trading.

 Most of the respondents are more comfortable in intraday trading then the

delivery trading.

 Most of the respondents are not invested their money due to high risk.

 85% of the respondents are much aware about Mutual funds.

 This study shows that 60% or the people are aware and 40% of the people are

not aware about IPO.

 Most of the people are invest their money in bank , because of zero percent of

risk.

 This study shows that, most of the respondents invest 5% - 10%of earnings in

share market.

 This study shows that only 40% of sample size are fully aware about online

trading.

 Most of the respondents are attractive to share market due to high return.

 This study shows that only 40% are fully satisfied with share market.

 This study shows that 44% of the respondents are highly satisfied with

brokerage of Adroit.

 56% respondents are highly satisfied with the services of Adroit.

76
 CHAPTER 7

RECOMMENDATIONS

77
 RECOMMENDATIONS

1. Adroit should developed in the online services for the customers like

brokerages, application, research report, SMS facilities.

2. Adroit should increase the customer interest in mutual fund and other

options also so that they can invest in it.

3. Adroit should also provide lucrative offer to attract new customers from

competitor’s company.

4. Adroit should conduct the awareness campaigns like giving idea about

derivatives, dividend policies will create interest in online trading.

5. Adroit should conduct the seminars at corporate level so as to increase the

customer interest.

78
 CHAPTER 8

LIMITATIONS

79
 LIMITATIONS

1. It is difficult to complete the study well in 45 days.

2. Some of the respondent does not give proper answer of the questions.

3. It is difficult to describe about share market to un educated people.

80
 CHAPTER-9

CONCLUSIONS

81
 CONCLUSIONS

 After the analysis it is found that Adroit is provides the best advice. The

advice provide by its R&D department is best for the investors.

 Customers of the Adroit are satisfied with this. They provide the timely and

accurate research , Adroit also provide the facility of the Trade Tiger.

 This terminal is very beneficial for its customers to watch the market.

Although peoples have not so much awareness about the share market but

Adroit is conducting seminar, training etc for the people. Peoples are less

aware about the commodity market, Derivatives.

 They are providing the seminar to enhancing the potential to the existing

customers. Brokerage charges are high but they are overcome on this. Use of

the terminal is easy than the other firms.

82
 CHAPTER 10

BIBLIOGRAPHY

83
 BIBLIOGRAPHY

Websites:-

https://www.adroitfinancial.com/

https://www.adroitfinancial.com/back-office

https://www.adroitfinancial.com/about-us

https://www.adroitfinancial.com/contact-us

https://www.adroitfinancial.com/contact-us

https://www.adroitfinancial.com/rmspolicy

84
CHAPTER 11

ANNEXURE

85
 ANNEXURE

QUESTIONNAIRE

I P r i y a n k a G u p t a student of MBA, Aligarh College Of Engineering

And Technology, I am doing my summer internship from Adroit F i n a n c i a l Ltd.

It is related to my curriculum activity and thank you to giving your few minutes.

Additional Information:-

1. Name

2. Age

3. Occupation

1. Have you any Demat account?

i. Yes [ ]

ii. No [ ]

2. Have you any investment in share market?

i. Yes [ ]

ii. No [ ]

3. In which mode you trade ?

i. Online [ ]

ii. Offline [ ]

4. How do you trade in stock market?

i. Intraday [ ]

ii. Delivery [ ]

86
5. If you not invest your money in share market then why?

i. Not aware about share market [ ]

ii. High risk [ ]

iii. Not any specific reason [ ]

6. Do you aware about mutual fund?

i. Yes [ ]

ii. No [ ]

7. Do you aware about IPO?

i. Yes [ ]

ii. No [ ]

8. Where do you invest your money?

i. Bank FD [ ]

ii. Mutual fund [ ]

iii. Equity [ ]

iv. Insurance [ ]

v. Others [ ]

9. What percentage of your earning you invest?

i. 5% - 10% [ ]

ii. 10 %- 25% [ ]

iii. 25% -50% [ ]

iv. More than this [ ]

87
10. How much you aware about online trading?

i. Fully [ ]

ii. Almost [ ]

iii. Less [ ]

iv. Neutral [ ]

11. Which factor motivate you most to invest in share market?

i. Return [ ]

ii. Liquidity [ ]

iii. Safety [ ]

12. Are you satisfy with your investment in share market?

i. Fully satisfy [ ]

ii. Satisfy [ ]

iii. Less satisfy [ ]

iv. Not satisfy [ ]

13. How much you satisfy with brokerage of Adroit?

i. Highly dissatisfy [ ]

ii. Dissatisfy [ ]

iii. Neutral [ ]

iv. Satisfy [ ]

v. Highly satisfy [ ]

88
14. How much you satisfy with Adroit services?

i. Highly dissatisfy [ ]

ii. Dissatisfy [ ]

iii. Neutral [ ]

iv. Satisfy [ ]

v. Highly satisfy [ ]

89
THANK YOU

90