INTRODUCTION

Change is the law of nature”. There were times when man was a wanderer or a
normal. He himself had to go place to place in search of food, water and now
everything is available at your doorstep just at the click of the mouse. The growth of
information technology has affected almost all sectors of life. Internet has enabled us
to get every information at our doorstep. When Internet has affected all sectors he
could “stock markets” the most important player of the economy, has remained far
behind like all other sectors Internet has set its feet in the stock markets also.

Online trading definition is a basic understanding of online trading processes. Since

the invention of Internet people have been able to do practically everything virtually.
Due to the Internet online trading has become one of the most popular ways to trade
as far as stock trading turned out to be as available to independent investors as
possible. Online trading gives both beginners who've just had a single day trading
course and advanced traders an opportunity to trade stocks, options, forex and futures
all over the world without physical presence of a broker and with much lower
commissions ,because everything is done online.

Internet trading commissions are clearly posted on the websites of the various
services, and are typically a fixed rate charge, depending upon the type of security
being traded and the size of trade. In theory, therefore, an Interest investor always
knows what commission he is being charged on each trade. Internet investors can take
as much time as they would like to take prior to placing a trade order. Similarly the
online investor likely does not have to worry that his broker is making unauthorized
trades. Since there is no individual broker making a commission, the only person who
is authorized to trace in the account is the actual investor. Furthermore, the internet
investor can never become a victim of excessive trading

(Where for the broker) since the investor maintains total control over the number of
transactions which take place in the account.

All of these positive features of internet trading may lead the unwary investor to
believe that Internet trading is a way to take control of their finances and save more

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money in the process. Unfortunately, this is not always the case. The advantages of
Internet stock trading have also its weaknesses and these weaknesses present
significant drawbacks for the average investor.

First and foremost, the average investor is not an expert in the financial markets.
There is a danger for allowing the autonomy of online trading to hull you into the
belief that you are an expert investor. An online investor sitting at home at a personal
computer also foregoes proper investment advice and financial planning, perhaps
among the most valuable services provided by traditional brokers.

There are ofcourse additional risks relative to performing transactions over the
Internet especially on a shared computer. Those people whom investors have provided
their account number and password can freely trade that account while the investor
will have little, if any,

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NEED FOR THE STUDY:
 The present study to review the online trading procedure a case study of
ONLINE TRADING at Indiabulls Ltd., as the exchange has changed it’s
trading from it and there is need to assess the performance of the capital
market.
 Maintaining good records requires discipline, just like good trading.
Unfortunately, many commodity traders don’t take the time to track their
trading history, which can offer a wealth of information to improve their odds
of success.
 Most professional traders, and those who consistently make money from
trading commodities, keep diligent records of their trading activity.
 The same cannot be said for the masses that consistently lose at trading
commodities.

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SCOPE OF THE STUDY:
 Investor can assess the company financial strength and factors that effect the
company. Scope of the study is limited. We can say that 70% of the analysis is
proved good for the investor, but the 30% depends upon market sentiment.
 The topic is selected to analyses the factors that affect the future EPS of a
company based on fundamentals of the company.
 The market standing of the company studied in the order to give a better scope
to the Analysis is helpful to the investors, share holders, creditors for the
rating of the company.
 Online Trading is a business investment based on the Internet that eliminates
the association of a broker.
 Whoever has a computer, enough money to open an account and history has
reasonable financial ability to invest in the market.
 Today, there are many companies trading online work as portals for homes as
the leading stock National Stock Exchange and Bombay Stock Exchange. 

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OBJECTIVES OF THE STUDY:

 It is to analyze the changes in trading after the exchange shifted from outcry to
online trading system.
 It is to study the functions of Indiabulls Ltd through various departments.
 To know the online screen based trading system adopted by Indiabulls Ltd
and about its communication facilities. The appropriate configuration to set
the network, which would link the Indiabulls Ltd to individual / members.
 To know about the latest and future development in the stock exchange trading
system.
  Creating an attractive and safe environment for investment.
  Developing processes and methods of trading securities in the stock market.
  Meeting the latest international standards

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METHODOLOGY OF THE STUDY:

The data collection methods include both primary and secondary

Collection methods.
Primary method: This method includes the data collected from the personal
interaction with authorized members of Indiabulls Ltd.
Secondary method: The secondary data collection method includes:
 The lecturers delivered by the superintendents of respective departments.
 The brochures and material provided by Indiabulls Ltd.
 The data collected from the magazines of the NSE, economic times, etc.

Sample size
For analyzing of that project, only few car models with their Models. This project
sample size is limited.

Source of data
The sources of the data are through the price reports given by Indiabulls. Through
conducting the interview to the various employees in Indiabulls Office.

Sampling Technique
Using the convenient sampling method collected the data necessary conduction the
analyses. In this method the sample were selected purposively to suit the convenience
in the matter of location and the topic for the study.

Sample instrument technique

The primary data needed for the analysis was collected Through interview schedules.
The instruments used for the analysis Purposes of the data was tables and the excel
sheets.

Research Type

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It is an analytical research, already available facts and Information is used to analysis
problem in other words, the main data used in the secondary.
LIMITATIONS OF THE STUDY:

The study confines to the past and present system of the trading procedure in Indibulls
Ltd. study is confined to the coverage of all the related issues in brief. The data is
collected from the primary and secondary sources and thus is subject to slight variation
than what the study includes in reality.

 The study is confined to online trading procedure only. Problems of listing are
not covered due to limited time and to keep the study in manageable limits.
 Time constraint was a major limiting factor. Forty five days were insufficient
to even grasp the theoretical concepts.

 Several other strategies that could have been studied were not done.

 Lack of knowledge with the brokers.

 Difference of theory from practice.

 Absence of required knowledge and technology.

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8
 REVIEW OF LITERATURE
ONLINE TRADING

Before getting in to the online trading we should know some things about the internet,
e-commerce and etc.
Internet
Internet is a worldwide, self-governed network connecting several other smaller
networks and millions of computers and persons, to mega sources of information.
This technology shrinks vast distances, accelerating the pace of business reforms and
revolutionizing the way companies are managed. It allows direct, ubiquitous links to
anyone anywhere and anytime to build up interactive relationships.

A combination of time and space, called the Internet promises to bring unprecedented
changes in our lives and business. Internet or net is an inter-connection of computer
communication networks spanning the entire globe, crossing all geographical
boundaries. It has re-defined the methods of communication, work study, education,
business, leisure, health, trade, banking, commerce and what not it is virtually
changing every thing and we are living in dot.com age. Net being an interactive two
way medium, through various websites, enables participation by individuals in
business to business and business to consumer commerce, visit to shopping arcades,
games, etc. in cyber space even the information can be copied, downloaded and
retransmitted.

The use of Internet has grown 2000 percent in last decade and is currently growing at
10 percent per month. In India, growth of Internet is of recent times. It is expected to
bring changes in every functional area of business activity including management and
financial services. It offers stock trading at a lower cost. Internet can change the
nature and capacity of stock broking business in India.

E-commerce
Electronic commerce is associated with buying and selling over computer
communication networks. It helps conduct traditional commerce through new way of
transferring and processing of information. Information is electronically transferred

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from computer to computer in an automated way. E-commerce refers to the paperless
exchange of business information using electronic data inter change, electronic
technologies. It not only reduces manual processes and paper transactions but also
helps organization move to a fully electronic environment and change the way they
operated.

PC’s and networking attempts to introduce banks of the tools and technologies
required for electronic commerce. The computers are either workstations of individual
office works or serves where large databases and information reside. Network
connects both categories of computers; the various operating systems are the most
basis program within a computer. It manages the resources of the computer system in
a fair and efficient manner.

Now we can enter in to the concept known as online trading.

In the past, investors had no option but to contact their broker to get real time access
to market data. The net brings data to the investor on-line and net broking enables him
to trade on a click of mouse. Now information has become easily accessible to both
retail as well as big investor.

EVOLUTION OF BROKING IN INDIA:

The evolution of a broking in India can be categorized in three phases -
 Stockbrokers will offer on their sites features such as live portfolio
manager, live quotes, market research and news, etc. to attract more
investors.
 Brokers will offer online broking and relationship management by
providing and offering analysis and information to investors during
broking and non-broking hours based on their profile and needs, i.e.
customized services.
 Brokers (now e-brokers) will offer value management or services like
initial public offering online, on-line asset allocation, portfolio
management, financial planning, tax planning, insurance services, etc. and
enables the investors to take better and well considered decisions.

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  The actual definition of “Online Trading” is as explained below:
 Online trading is a service offered on the internet for purchase and sale of
shares. In the real world you place orders on your stockbroker either verbally
(personally or telephonically) or in a written form (fax).” In online trading,
you will access a stockbroker’s website through your internet enabled PC and
place orders through the broker’s internet based trading engine. These orders
are routed to the stock exchange without manual intervention and executed
thereon in a matter of a few seconds .The net is used as a mode of trading in
internet trading. Orders are communicated to the stock exchange through
website.

IN INDIA:
Internet trading started in India on 1st April 2000 with 79 members seeking permission
for online trading. The SEBI committees on internet based securities trading services
has allowed the net to be used as an Order Routing System (ORS) through registered
stock brokers on behalf of their clients for execution of transaction. Under the ORS
the client enters his requirements (security, quantity, price buy/sell) on broker’s site.

OBJECTIVES:
Internet trading is expected to
 Increase transparency in the markets,
 Enhance market quality through improved liquidity, by increasing quote
continuity and market depth,
 Reduce settlement risks due to open trades, by elimination of mismatches,

 Provide management information system,

 Introduce flexibility in system, so as to handle growing volumes easily and
to support nationwide expansion of market activity.

Besides, through internet trading three fundamental objectives of securities

regulation can be easily achieved, these are:
 Investor protection

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  Creation of a fair and efficient market, and
 Reduction of the systematic risks.
Some of the brokers offering net trading include ICICI direct, kotakstreet, etc.

REQUIREMENTS FOR NET TRADING:

FOR INVESTORS
 Installation of a computer with required specification
 Installation of a modem
 Telephone connection
 Registration for on-line trading with broker
 A bank account
 Depository account
 Compliance with SEBI guidelines for net trading

THE FOLLOWING SHOULD BE PRODUCED TO GET A DEMAT

ACCOUNT AND ONLINE TRADING ACCOUNT:
As identity proof & address proof any one of the following:
 Voter ID card
 Driving license
 PAN card( in case of to trade more than 50000)
 Ration card
 Bank pass book
 Telephone bill
OTHER REQUIREMENTS, WHICH ARE NECESSARY
 First page of the bank pass book and last 6 months statement.
 Bank manager’s signature along with bank’s seal, manager registration code
on photograph.
FOR STOCK BROKERS
1. Permission from stock exchange for net trading
2. Net worth of Rs. 50 lac
3. Adequate back-up system
4. Secured and reliable software system
5. Adequate, experienced and trained staff

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 6. Communication of order (trade confirmation to investor by e-mail)
7. Use of authentication technologies
8. Issue of contract notes within 24 hours of the trade execution
9. Setting up a website.

The net is used as a medium of trading in internet trading. Orders are communicated
to the stock exchange through website. Internet trading started in India on 1st April
2000 with 79 members seeking permission for online trading. The SEBI committees
on internet based securities trading services has allowed the net to be used as an Order
Routing System (ORS) through registered stock brokers on behalf of their clients for
execution of transaction.

Under the Order Routing System the client enters his requirements (security, quantity,
price, and buy/sell) in broker's site. They are checked electronically against the clients
account and routed electronically to the appropriate exchange for execution by the
broker. The client receives a confirmation on execution of the order. The customer's
portfolio and ledger accounts get updated to reflect the transaction. The user should
have the user id and password to enter into the electronic ring. He should also have
demat account and bank account. The system permits only a registered client to log in
using user id and password. Order can be placed using place order window of the
website.

Procedure for net trading

Step 1: Those investors, who are interested in doing the trading over internet system
i.e. NEAT-IXS, should approach the brokers and get them self registered with the
Stock Broker.
Step 2: After registration, the broker will provide to them a Login name, Password
and personal identification number (PIN).
Step 3: Actual placement of an order. An order can then be placed by using the place
order window as under:
(a) First by entering the symbol and series of stock and other parameters like
quantity and price of the scrip on the place order window.
(b) Second, fill in the symbol, series and the default quantity.
Step 4: It is the process of review. Thus, the investor has to review the order placed
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by clicking the review option. He may also re-set to clear the values.
Step 5: After the review has been satisfactory, the order has to be sent by clicking on
the send option.
Step 6: The investor will receive an "Order Confirmation" message along with the
order number and the value of the order.
Step 7: In case the order is rejected by the Broker or the Stock Exchange for certain
reasons such as invalid price limit, an appropriate message will appear at the bottom
of the screen. At present, a time lag of about 10 seconds is there in executing the
trade.
Step 8: It is regarding charging payment, for which there are different mode. Some
brokers will take some advance payment from the investor and will fix their trading
limits. When the trade is executed, the broker will ask the investor for transfer of
funds to his account.

Internet trading provides total transparency between a broker and an investor in the
secondary market. In the open outcry system, only the broker knew the actually
transacted price. Screen based trading provides more transparency. With online
trading investors can see themselves the price at which the deal takes place.

The time gap has narrowed in every stage of operation. Confirmation and execution of
trade reaches the investor within the least possible time, mostly within 30 seconds.
Instant feedback is available about the execution. Some of the websites also offer;
 News and research report
 BSE and NSE movements
 Stock analysis
 IPO and mutual fund centers

STEP BY STEP PROCEDURE IN ONLINE TRADING:

Following steps explain the step by step approach to on-line trading:
Log on to the stock broker's website
Register as client/investor
 Fill the application form and client broker agreement form on the requisite
value stamp paper
 Obtain user ID and pass word

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  Log on to the broker's site using secure user ID and password
 Market watch page will show real time on-line market data
 Trade shares directly by entering the symbol or number of the security
 Brokers server will check your limit in the on-line account and demat account
for the number of shares and execute the trade
 Order is executed instantly (10-30 seconds) and confirmation can be obtained.
 Confirmation is e-mailed to investor by broker
 Contract note is printed and mailed in 24 hours
 Settlement will take place automatically on the settlement day
 Demat account and the bank account will get debited and credited by
electronic means.

ONLINE TRADING HAS LED TO ADDITIONAL FEATURES

SUCH AS:
 Limit / stop orders: orders that can be go unfilled, but there is an extra Charge
for this leeway facility since one need to hold a price.
 Market orders: orders can be filled at unexpected prices, but this type is much
more risky, since you have to buy stock at the given price.
 Cash account: where funds have to be available prior to placing the order.
 Margin account: where orders can be placed against stocks, to increase
Purchasing power.

ADVANTAGES OF ONLINE TRADING:

 Online trading has made it possible for anyone to have easy and efficient
access to more reports and charts than it was previously possible if one went to
any brokers' office. Thus we have access to a lot more information online.
 Online trading has let room for smaller organizations to compete with
multinational organizations since it is no longer a leg it issue. Being online
does not identify the size of any particular organization, therefore, this
additional power to the underdogs.
 Online trading has allowed companies to locate themselves where they want
as physical location is not an issue anymore. Companies can establish

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 themselves according to their gains and losses, for instance where tax (sales
and value added taxes) is best suited to them.
 Online trading gives control to individuals and they can exercise it over
accounts thus comprehend what is going on when they trade. It is like going
back to school and re-educating oneself on how to trade online.
 Individuals’ benefit by saving comparatively a lot more when trading online as
the cost per trade is less.
 Individuals can invest in a variety of products, unlike earlier when people
bought bonds, mutual funds, and stock for long-term basis and sat on them.
Now they can invest in stocks, stock and index options mutual funds,
government, and even insurance.

INVESTORS REASONS TO TRADE ONLINE:

 They have control over their accounts, can make their own decisions and don’t
have to give reasons for their actions. They are independent.
 They have a reason to participate in the market and learn about it.
 It is interesting, cheap, easy, fast, and convenient.
 A lot of information is online so they can keep up-to-date with what is
happening in the trading world.
 It will give investors a greater choice and better realization.
 The immediate impact will be competition and benefits will accrue to the
investors.
 It will lead to brokerage commissions going down and brokers striving to
increase business afloat.
 Investors will now go to place, which have better trading conditions and also
members to offer them better facilities.
 They have access to numerous tools to invest, and can create their own
portfolio.

HERE ARE THE POSSIBLE DISADVANTAGES:

 When network crashes, there will be problems and delays due to a large influx
of rapid online trading criteria.

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  Individuals are restricted to first-hand financial guidance. This simply means
that the individual is himself / herself alone to.
 A tax (sales tax and value added tax) evaluation becomes an issue, especially
when you are trading internationally.
 One has no idea with whom he is dealing with on the other end.
 According to a study conducted by Mary Rowland, careful investor: is online
trading bad for your portfolio, the more one trades the less returns one gets,
meaning that an addicted trader gets, carried away online and begins to trade
for too much which causes losses for him / her.
 Individuals think that they are trading with the market directly and know what
they are doing, but the truth is that even though technology has taken over, the
basic rules of trading are the same. It seems that the middleman has been
removed, but that is not so. When the individuals click on the mouse, his trade
goes through a broker. The commissions online pertain to the intermediary.
 There is a need for more effective communication links over the Internet and
the ability of the server to deal with a large volume of visitors.

STOCK EXCHANGES IN INDIA:

Stock exchanges are the perfect type of market for securities whether of government
and semi-govt bodies or other public bodies as also for shares and debentures issued
by the joint-stock companies. In the stock market, purchases and sales of shares are
affected in conditions of free competition. Government securities are traded outside
the trading ring in the form of over the counter sales or purchase. The bargains that
are struck in the trading ring by the members of the stock exchanges are at the fairest
prices determined by the basic laws of supply and demand.

DEFINITION OF A STOCK EXCHANGE:

“Stock exchange means anybody or individuals whether incorporated or not,
constituted for the purpose of assisting, regulating or controlling the business of
buying, selling or dealing in securities.” The securities include:

 Shares of public company.

 Government securities.
 Bonds

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HISTORY OF STOCK EXCHANGES:
The only stock exchanges operating in the 19th century were those of Mumbai setup in
1875 and Ahmedabad set up in 1894. These were organized as voluntary non-profit-
marking associations of brokers to regulate and protect their interests. Before the
control on securities under the constitution in 1950, it was a state subject and the
Bombay securities contracts (control) act of 1925 used to regulate trading in
securities. Under this act, the Mumbai stock exchange was recognized in 1927 and
Ahmedabad in 1937. During the war boom, a number of stock exchanges were
organized. Soon after it became a central subject, central legislation was proposed and
a committee headed by A.D.Gorwala went into the bill for securities regulation. On
the basis of the committee’s recommendations and public discussion, the securities
contract (regulation) act became law in 1956.

FUNCTIONS OF STOCK EXCHANGES:

Stock exchanges provide liquidity to the listed companies. By giving quotations to the
listed companies, they help trading and raise funds from the market. Over the hundred
and twenty years during which the stock exchanges have existed in this country and
through their medium, the central and state government have raised crores of rupees
by floating public loans. Municipal corporations, trust and local bodies have obtained
from the public their financial requirements, and industry, trade and commerce- the
backbone of the country’s economy-have secured capital of crores or rupees through
the issue of stocks, shares and debentures for financing their day-to-day activities,
organizing new ventures and completing projects of expansion, diversification and
modernization. By obtaining the listing and trading facilities, public investment is
increased and companies were able to raise more funds. The quoted companies with
wide public interest have enjoyed some benefits and assets valuation has become
easier for tax and other purposes.

OUT OF THESE MAJOR STOCK EXCHANGES WERE:

NSE
The National Stock Exchange of India Limited has genesis in the report of the High
Powered Study Group on Establishment of New Stock Exchanges, which
recommended promotion of a National Stock Exchange by financial institutions (FI’s)

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to provide access to investors from all across the country on an equal footing. Based
on the recommendations, NSE was promoted by leading Financial Institutions at the
behest of the Government of India and was incorporated in November 1992 as a tax-
paying company unlike other stock exchanges in the country. On its recognition as a
stock exchange under the Securities Contracts (Regulation) Act, 1956 in April 1993,
NSE commenced operations in the Wholesale Debt Market (WDM) segment in June
1994. The Capital Market (Equities) segment commenced operations in November
1994 and operations in Derivatives segment commenced in June 2000

NSE's mission is setting the agenda for change in the securities markets in India. The
NSE was set-up with the main objectives of:
 Establishing a nation-wide trading facility for equities and debt instruments.
 Ensuring equal access to investors all over the country through an appropriate
communication network.
 Providing a fair, efficient and transparent securities market to investors using
electronic trading systems.
 Enabling shorter settlement cycles and book entry settlements systems, and
 Meeting the current international standards of securities markets.

The standards set by NSE in terms of market practices and technology, have become
industry benchmarks and are being emulated by other market participants. NSE is
more than a mere market facilitator. It's that force which is guiding the industry
towards new horizons and greater opportunities

BSE:
The Stock Exchange, Mumbai, popularly known as "BSE" was established in 1875 as
"The Native Share and Stock Brokers Association". It is the oldest one in Asia, even
older than the Tokyo Stock Exchange, which was established in 1878. It is a voluntary
non-profit making Association of Persons (AOP) and is currently engaged in the
process of converting itself into demutualised and corporate entity. It has evolved
over the years into its present status as the premier Stock Exchange in the country. It
is the first Stock Exchange in the Country to have obtained permanent recognition in
1956 from the Govt. of India under the Securities Contracts (Regulation) Act

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1956.The Exchange, while providing an efficient and transparent market for trading in
securities, debt and derivatives upholds the interests of the investors and ensures
redresses of their grievances whether against the companies or its own member-
brokers. It also strives to educate and enlighten the investors by conducting investor
education programmers and making available to them necessary informative inputs.

A Governing Board having 20 directors is the apex body, which decides the policies
and regulates the affairs of the Exchange. The Governing Board consists of 9 elected
directors, who are from the broking community (one third of them retire ever year by
rotation), three SEBI nominees, six public representatives and an Executive Director
& Chief Executive Officer and a Chief Operating Officer.

The Executive Director as the Chief Executive Officer is responsible for the day-to-
day administration of the Exchange and the Chief Operating Officer and other Heads
of Department assist him. The Exchange has inserted new Rule No.126 A in its Rules,
Byelaws pertaining to constitution of the Executive Committee of the Exchange.
Accordingly, an Executive Committee, consisting of three elected directors, three
SEBI nominees or public representatives, Executive Director & CEO and Chief
Operating Officer has been constituted.

REGULATORY FRAME WORK OF STOCK EXCHANGE:

A comprehensive legal framework was provided by the “Securities Contract
Regulation Act, 1956” and “Securities Exchange Board of India 1952”. Three tier
regulatory structure comprising
 Ministry of finance
 The Securities And Exchange Board of India
 Governing body

MEMBERS OF THE STOCK EXCHANGE:

The securities contract regulation act 1956 has provided uniform regulation for the
admission of members in the stock exchanges. The qualifications for becoming a
member of a recognized stock exchange are given below:
 The minimum age prescribed for the members is 21 years.

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  He should be an Indian citizen.
 He should be neither a bankrupt nor compound with the creditors.
 He should not be convicted for fraud or dishonesty.
 He should not be engaged in any other business connected with a
company.
 He should not be a defaulter of any other stock exchange.
 The minimum required education is a pass in 12th standard examination.

SECURITIES AND EXCHANGE BOARD OF INDIA (SEBI):

The securities and exchange board of India was constituted in 1988 under a resolution
of government of India. It was later made statutory body by the SEBI act
1992.according to this act, the SEBI shall constitute of a chairman and four other
members appointed by the central government.
With the coming into effect of the securities and exchange board of India act, 1992
some of the powers and functions exercised by the central government, in respect of
the regulation of stock exchange were transferred to the SEBI.

OBJECTIVES AND FUNCTIONS OF SEBI:

 To protect the interest of investors in securities.
 Regulating the business in stock exchanges and any other securities market.
 Registering and regulating the working of intermediaries associated with
securities market as well as working of mutual funds.
 Promoting and regulating self-regulatory organizations.
 Prohibiting insider trading in securities.

SEBI GUIDELINES TO SECONDARY MARKETS: (STOCK

EXCHANGES):

 Board of Directors of Stock Exchange has to be reconstituted so as to include

non-members, public representatives and government representatives to the
extent of 50% of total number of members.
 Capital adequacy norms have been laid down for the members of various stock
exchanges depending upon their turnover of trade and other factors.
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  All recognized stock exchanges will have to inform about transactions within
24 hrs.

TYPES OF ORDERS:
Buy and sell orders placed with members of the stock exchange by the investors. The
orders are of different types.
Limit orders: Orders are limited by a fixed price. E.g. ‘buy Reliance Petroleum at
Rs.50.’Here, the order has clearly indicated the price at which it has to be bought and
the investor is not willing to give more than Rs.50.

Best rate order: Here, the buyer or seller gives the freedom to the broker to execute
the order at the best possible rate quoted on the particular date for buying. It may be
lowest rate for buying and highest rate for selling.

Discretionary order: The investor gives the range of price for purchase and sale. The
broker can use his discretion to buy within the specified limit. Generally the
approximation price is fixed. The order stands as this “buy BRC 100 shares around
Rs.40”.

Stop loss order: The orders are given to limit the loss due to unfavorable price
movement in the market. A particular limit is given for waiting. If the price falls
below the limit, the broker is authorized to sell the shares to prevent further loss. E.g.
Sell BRC limited at Rs.24, stop loss at Rs.22.

Buying and selling shares: To buy and sell the shares the investor has to locate
register broker or sub broker who render prompt and efficient service to him. The
order to buy or sell specifying the number of shares of the company of investors’
choice is placed with the broker. The order may be of any type. After receiving the
order the broker tries to execute the order in his computer terminal. Once matching
order is found, the order is executed. The broker then delivers the contract note to the
investor. It gives the details regarding the name of the company, number of shares
bought, price, brokerage, and the date of delivery of share. In this physical trading
form, once the broker gets the share certificate through the clearing houses he delivers

22
the share certificate along with transfer deed to the investor. The investor has to fill
the transfer deed and stamp it.

The stamp duty is one of the percentage considerations, the investor should lodge the
share certificate and transfer deed to the register or transfer agent of the company. If it
is bought in the DEMAT form, the broker has to give a matching instruction to his
depository participant to transfer shares bought to the investors account. The investor
should be account holder in any of the depository participant. In the case of sale of
shares on receiving payment from the purchasing broker, the broker effects the
payment to the investor.

Share groups: The scrips traded on the BSE have been classified into
‘A’,’B1’,’B2’,’C’,’F’ and ‘Z’ groups. The ‘A’ group represents those, which are in
the carry forward system. The ‘F’ group represents the debt market segment (fixed
income securities). The Z group scrips are of the blacklisted companies. The ‘C’
group covers the odd lot securities in ‘A’, ‘B1’&’B2’ groups.

ROLLING SETTLEMENT SYSTEM:

Under rolling settlement system, the settlement takes place n days (usually 1, 2, 3 or
5days) after the trading day. The shares bought and sold are paid in for n days after
the trading day of the particular transaction. Share settlement is likely to be completed
much sooner after the transaction than under the fixed settlement system.

The rolling settlement system is noted by T+N i.e. the settlement period is n days after
the trading day. A rolling period which offers a large number of days negates the
advantages of the system. Generally longer settlement periods are shortened
gradually.

SEBI made RS compulsory for trading in 10 securities selected on the basis of the
criteria that they were in compulsory demat list and had daily turnover of about Rs.1
crore or more. Then it was extended to “A” stocks in Modified Carry Forward
Scheme, Automated Lending and Borrowing Mechanism (ALBM) and Borrowing
and lending Securities Scheme (BELSS) with effect from Dec 31, 2001.

23
SEBI has introduced T+5 rolling settlement in equity market from July 2001 and
subsequently shortened the cycle to T+3 from April 2002. After the T+3 rolling
settlement experience it was further reduced to T+2 to reduce the risk in the market
and to protect the interest of the investors from 1st April 2003.

Activities on T+1: conformation of the institutional trades by the custodian is sent to

the stock exchange by 11.00 am. A provision of an exception window would be
available for late confirmation. The time limit and the additional changes for the
exception window are dedicated by the exchange.

The exchanges/clearing house/ clearing corporation would process and download the
obligation files to the broker’s terminals late by 1.30 p.m on T+1. Depository
participants accept the instructions for pay in securities by investors in physical form
upto 4 p.m and in electronic form upto 6 p.m. the depositories accept from other DPs
till 8p.m for same day processing.

Activities on T+2: The depository permits the download of the paying in files of
securities and funds till 10.30 a.m on T+2 from the brokers’ pool accounts. The
depository processes the pay in requests and transfers the consolidated pay in files to
clearing House/clearing Corporation by 11.00am/on T+2. The exchange/clearing
house/clearing corporation executes the pay-out of securities and funds latest by 1.30
p.m on T+2 to the depositories and clearing banks. In the demat mode net basis
settlement is allowed. The buy and sale positions in the same scrip can be settled and
net quantity has to be settled.

24
 INDUSTRY PROFILE
As part of our deep commitment to social causes, For the Indian investors, the year
belonged to stock markets, which have been shining bright when it comes to
generating wealth, while the glitter of gold and silver faded for the second straight
year in 2013.

Measured by BSE Sensex, stock market has generated a positive return of about 9 per
cent for investors in 2013, while gold prices fell by about three per cent and its poorer
cousin silver plummeted close to 24 per cent.
After outperforming stock market for more than a decade, gold has been on back foot
for two consecutive years now vis-a-vis equities, shows an analysis of their price
movements.

"Gold's under-performance was mainly due to prices falling in dollar terms amid
anticipated tapering over last several months combined with FII investment in Indian
stocks.

"This movement has been equally true for global markets as 2013 saw gold losing its
shine and markets coming back with a bang," said Jayant Manglik, President Retail
Distribution, Religare Securities.

"As always, gold and stock prices follow opposite trends and this year was no
different except that both changed direction," he said.

In 2012, the Sensex had gained over 25 per cent, which was nearly double the gain of
about 12.95 per cent in gold. The appreciation in silver was at about 12.84 per last
year.
According to Hiren Dhakan, Associate Fund Manager, Bonanza Portfolio, "Markets
have particularly shown great strength post July-August 2013 when RBI took some
strong measures to control the steeply depreciating rupee."
"When the US Fed gave indications that it might taper its stimulus programme given
the economy shows improvement, a knee-jerk correction was seen in most risky
assets, including stocks in Indian markets. However, assurance by the Fed about

25
planned and staggered tapering in stimulus once again proved to be a catalyst for the
markets."

"External factors affecting Indian stocks seem to be negative for the first half of 2014
due to continued strength of the US dollar and benign in the second half. By that time,
elections too would have taken place. A combination of domestic and international
factors point to a bumper closing of Indian markets in 2014 with double-digit
percentage growth," he said. Stock market segment mid-cap and small-cap indices
have fallen by about 10 per cent and 16 per cent, respectively, in 2013. Foreign
Institutional Investors have bought shares worth over Rs 1.1 lakh crore (nearly USD
20 billion) till December 19. In 2012, they had pumped in Rs 1.28 lakh crore (USD
24.37 billion).

Evolution:
Indian Stock Markets are 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 cotton supply from United States of
Europe was stopped; thus, the 'Share Mania' in India begun. The number of brokers
increased to about 200 to 250. However, at the end of the American Civil War, in
1865, a disastrous slump began (for example, Bank of Bombay Share which had
touched Rs 2850 could only be sold at Rs. 87).

26
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.

OTHER LEADING CITIES IN STOCK MARKET OPERATIONS:

Ahmadabad gained importance next to Bombay with respect to cotton textile industry.
After 1880, many mills originated from Ahmadabad and rapidly forged ahead. As
new mills were floated, the need for a Stock Exchange at Ahmadabad was realized
and in 1894 the brokers formed "The Ahmadabad Share and Stock Brokers'
Association".

What the cotton textile industry was to Bombay and Ahmadabad, the jute industry
was to Calcutta. Also tea and coal industries were the other major industrial groups in
Calcutta. After the Share Mania in 1861-65, in the 1870's there was a sharp boom in
jute shares, which was followed by a boom in tea shares in the 1880's and 1890's; and
a coal boom between 1904 and 1908. On June 1908, some leading brokers formed
"The Calcutta Stock Exchange Association".

In the beginning of the twentieth century, the industrial revolution was on the way in
India with the Swadeshi Movement; and with the inauguration of the Tata Iron and
Steel Company Limited in 1907, an important stage in industrial advancement under
Indian enterprise was reached.

Indian cotton and jute textiles, steel, sugar, paper and flour mills and all companies
generally enjoyed phenomenal prosperity, due to the First World War

In 1920, the then demure city of Madras had the maiden thrill of a stock exchange
functioning in its midst, under the name and style of "The Madras Stock Exchange"

27
with 100 members. However, when boom faded, the number of members stood
reduced from 100 to 3, by 1923, and so it went out of existence.

In 1935, the stock market activity improved, especially in South India where there
was a rapid increase in the number of textile mills and many plantation companies
were floated. In 1937, a stock exchange was once again organized in Madras - Madras
Stock Exchange Association (Pvt) Limited. (In 1957 the name was changed to Madras
Stock Exchange Limited).

Lahore Stock Exchange was formed in 1934 and it had a brief life. It was merged with
the Punjab Stock Exchange Limited, which was incorporated in 1936.

INDIAN STOCK EXCHANGES - AN UMBRELLA GROWTH:

The Second World War broke out in 1939. It gave a sharp boom which was followed
by a slump. But, in 1943, the situation changed radically, when India was fully
mobilized as a supply base.

On account of the restrictive controls on cotton, bullion, seeds and other commodities,
those dealing in them found in the stock market as the only outlet for their activities.
They were anxious to join the trade and their number was swelled by numerous
others. Many new associations were constituted for the purpose and Stock Exchanges
in all parts of the country were floated.

The Uttar Pradesh Stock Exchange Limited (1940), Nagpur Stock Exchange Limited
(1940) and Hyderabad Stock Exchange Limited (1944) were incorporated.

In Delhi two stock exchanges - Delhi Stock and Share Brokers' Association Limited
and the Delhi Stocks and Shares Exchange Limited - were floated and later in June
1947, amalgamated into the Delhi Stock Exchnage Association Limited.

28
POST-INDEPENDENCE SCENARIO:
Most of the exchanges suffered almost a total eclipse during depression. Lahore
Exchange was closed during partition of the country and later migrated to Delhi and
merged with Delhi Stock Exchange.

Bangalore Stock Exchange Limited was registered in 1957 and recognized in 1963.
Most of the other exchanges languished till 1957 when they applied to the Central
Government for recognition under the Securities Contracts (Regulation) Act, 1956.
Only Bombay, Calcutta, Madras, Ahmadabad, Delhi, Hyderabad and Indore, the well
established exchanges, were recognized under the Act. Some of the members of the
other Associations were required to be admitted by the recognized stock exchanges on
a concessional basis, but acting on the principle of unitary control, all these pseudo
stock exchanges were refused recognition by the Government of India and they
thereupon ceased to function.

Thus, during early sixties there were eight recognized stock exchanges in India
(mentioned above). The number virtually remained unchanged, for nearly two
decades. During eighties, however, many stock exchanges were established: Cochin
Stock Exchange (1980), Uttar Pradesh Stock Exchange Association Limited (at
Kanpur, 1982), and Pune Stock Exchange Limited (1982), Ludhiana Stock Exchange
Association Limited (1983), Gauhati Stock Exchange Limited (1984), Kanara Stock
Exchange Limited (at Mangalore, 1985), Magadh Stock Exchange Association (at
Patna, 1986), Jaipur Stock Exchange Limited (1989), Bhubaneswar Stock Exchange
Association Limited (1989), Saurashtra Kutch Stock Exchange Limited (at Rajkot,
1989), Vadodara Stock Exchange Limited (at Baroda, 1990) and recently established
exchanges - Coimbatore and Meerut. Thus, at present, there are totally twenty one
recognized stock exchanges in India excluding the Over The Counter Exchange of
India Limited (OTCEI) and the National Stock Exchange of India Limited (NSEIL).

The Table given below portrays the overall growth pattern of Indian stock markets
since independence. It is quite evident from the Table that Indian stock markets have
not only grown just in number of exchanges, but also in number of listed companies
and in capital of listed companies. The remarkable growth after 1985 can be clearly

29
seen from the Table, and this was due to the favouring government policies towards
security market industry.

TRADING PATTERN OF THE INDIAN STOCK MARKET:

Trading in Indian stock exchanges are limited to listed securities of public limited
companies. They are broadly divided into two categories, namely, specified securities
(forward list) and non-specified securities (cash list). Equity shares of dividend
paying, growth-oriented companies with a paid-up capital of atleast Rs.50 million and
a market capitalization of atleast Rs.100 million and having more than 20,000
shareholders are, normally, put in the specified group and the balance in non-specified
group.

Two types of transactions can be carried out on the Indian stock exchanges: (a) spot
delivery transactions "for delivery and payment within the time or on the date
stipulated when entering into the contract which shall not be more than 14 days
following the date of the contract" : and (b) forward transactions "delivery and
payment can be extended by further period of 14 days each so that the overall period
does not exceed 90 days from the date of the contract". The latter is permitted only in
the case of specified shares. The brokers who carry over the outstandings pay carry
over charges (cantango or backwardation) which are usually determined by the rates
of interest prevailing.

A member broker in an Indian stock exchange can act as an agent, buy and sell
securities for his clients on a commission basis and also can act as a trader or dealer as
a principal, buy and sell securities on his own account and risk, in contrast with the
practice prevailing on New York and London Stock Exchanges, where a member can
act as a jobber or a broker only.

The nature of trading on Indian Stock Exchanges are that of age old conventional
style of face-to-face trading with bids and offers being made by open outcry.
However, there is a great amount of effort to modernize the Indian stock exchanges in
the very recent times.

30
OVER THE COUNTER EXCHANGE OF INDIA (OTCEI)
The traditional trading mechanism prevailed in the Indian stock markets gave way to
many functional inefficiencies, such as, absence of liquidity, lack of transparency,
unduly long settlement periods and benami transactions, which affected the small
investors to a great extent. To provide improved services to investors, the country's
first ringless, scripless, electronic stock exchange - OTCEI - was created in 1992 by
country's premier financial institutions - Unit Trust of India, Industrial Credit and
Investment Corporation of India, Industrial Development Bank of India, SBI Capital
Markets, Industrial Finance Corporation of India, General Insurance Corporation and
its subsidiaries and CanBank Financial Services.
Trading at OTCEI is done over the centres spread across the country. Securities traded
on the OTCEI are classified into:
 Listed Securities - The shares and debentures of the companies listed on the
OTC can be bought or sold at any OTC counter all over the country and they
should not be listed anywhere else
 Permitted Securities - Certain shares and debentures listed on other exchanges
and units of mutual funds are allowed to be traded
 Initiated debentures - Any equity holding atleast one lakh debentures of a
particular scrip can offer them for trading on the OTC.

OTC has a unique feature of trading compared to other traditional exchanges. That is,
certificates of listed securities and initiated debentures are not traded at OTC. The
original certificate will be safely with the custodian. But, a counter receipt is
generated out at the counter which substitutes the share certificate and is used for all
transactions.

In the case of permitted securities, the system is similar to a traditional stock

exchange. The difference is that the delivery and payment procedure will be
completed within 14 days.
Compared to the traditional Exchanges, OTC Exchange network has the following
advantages:
 OTCEI has widely dispersed trading mechanism across the country which
provides greater liquidity and lesser risk of intermediary charges.

31
  Greater transparency and accuracy of prices is obtained due to the screen-
based scripless trading.
 Since the exact price of the transaction is shown on the computer screen, the
investor gets to know the exact price at which s/he is trading.
 Faster settlement and transfer process compared to other exchanges.
 In the case of an OTC issue (new issue), the allotment procedure is completed
in a month and trading commences after a month of the issue closure, whereas
it takes a longer period for the same with respect to other exchanges.

Thus, with the superior trading mechanism coupled with information transparency
investors are gradually becoming aware of the manifold advantages of the OTCEI.

NATIONAL STOCK EXCHANGE (NSE) :

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 Finance Corporation
of India, all Insurance Corporations, selected commercial banks and others.
Trading at NSE can be classified under two broad categories:
(a) Wholesale debt market and
(b) Capital market.
Wholesale debt market operations are similar to money market operations -
institutions and corporate bodies enter into high value transactions in financial
instruments such as government securities, treasury bills, public sector unit bonds,
commercial paper, certificate of deposit, etc.
There are two kinds of players in NSE:
(a) trading members and
(b) 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.

32
Trading at NSE takes place through a fully automated screen-based trading
mechanism which adopts the principle of an order-driven market. Trading members
can stay at their offices and execute the trading, since they are linked through a
communication network. The prices at which the buyer and seller are willing to
transact will appear on the screen. When the prices match the transaction will be
completed and a confirmation slip will be printed at the office of the trading member.

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.
 Delays in communication, late payments and the malpractice’s prevailing in
the traditional trading mechanism can be done away with greater operational
efficiency and informational transparency in the stock market operations, with
the support of total computerized network.
Unless stock markets provide professionalized service, small investors and foreign
investors will not be interested in capital market operations. And capital market being
one of the major source of long-term finance for industrial projects, India cannot
afford to damage the capital market path. In this regard NSE gains vital importance in
the Indian capital market system

PREAMBLE:
Often, in the economic literature we find the terms ‘development’ and ‘growth’ are
used interchangeably. However, there is a difference. Economic growth refers to the
sustained increase in per capita or total income, while the term economic development
implies sustained structural change, including all the complex effects of economic
growth. In other words, growth is associated with free enterprise, where as
development requires some sort of control and regulation of the forces affecting
development. Thus, economic development is a process and growth is a phenomenon.

33
Economic planning is very critical for a nation, especially a developing country like
India to take the country in the path of economic development to attain economic
growth.

WHY ECONOMIC PLANNING FOR INDIA?:

One of the major objective of planning in India is to increase the rate of economic
development, implying that increasing the rate of capital formation by raising the
levels of income, saving and investment. However, increasing the rate of capital
formation in India is beset with a number of difficulties. People are poverty ridden.
Their capacity to save is extremely low due to low levels of income and high
propensity to consume. Therefor, the rate of investment is low which leads to capital
deficiency and low productivity. Low productivity means low income and the vicious
circle continues. Thus, to break this vicious economic circle, planning is inevitable for
India.

The market mechanism works imperfectly in developing nations due to the ignorance
and unfamiliarity with it. Therefore, to improve and strengthen market mechanism
planning is very vital. In India, a large portion of the economy is non-monitised; the
product, factors of production, money and capital markets is not organized properly.
Thus the prevailing price mechanism fails to bring about adjustments between
aggregate demand and supply of goods and services. Thus, to improve the economy,
market imperfections has to be removed; available resources has to be mobilized and
utilized efficiently; and structural rigidities has to be overcome. These can be attained
only through planning.

In India, capital is scarce; and unemployment and disguised unemployment is

prevalent. Thus, where capital was being scarce and labour being abundant, providing
useful employment opportunities to an increasing labour force is a difficult exercise.
Only a centralized planning model can solve this macro problem of India.

Further, in a country like India where agricultural dependence is very high, one
cannot ignore this segment in the process of economic development. Therefore, an
economic development model has to consider a balanced approach to link both

34
agriculture and industry and lead for a paralleled growth. Not to mention, both
agriculture and industry cannot develop without adequate infrastructural facilities
which only the state can provide and this is possible only through a well carved out
planning strategy. The government’s role in providing infrastructure is unavoidable
due to the fact that the role of private sector in infrastructural development of India is
very minimal since these infrastructure projects are considered as unprofitable by the
private sector.

Further, India is a clear case of income disparity. Thus, it is the duty of the state to
reduce the prevailing income inequalities. This is possible only through planning.

PLANNING HISTORY OF INDIA:

The development of planning in India began prior to the first Five Year Plan of
independent India, long before independence even. The idea of central directions of
resources to overcome persistent poverty gradually, because one of the main policies
advocated by nationalists early in the century. The Congress Party worked out a
program for economic advancement during the 1920’s, and 1930’s and by the 1938
they formed a National Planning Committee under the chairmanship of future Prime
Minister Nehru. The Committee had little time to do anything but prepare programs
and reports before the Second World War which put an end to it. But it was already
more than an academic exercise remote from administration. Provisional government
had been elected in 1938, and the Congress Party leaders held positions of
responsibility. After the war, the Interim government of the pre-independence years
appointed an Advisory Planning Board. The Board produced a number of somewhat
disconnected Plans itself. But, more important in the long run, it recommended the
appointment of a Planning Commission.

The Planning Commission did not start work properly until 1950. During the first
three years of independent India, the state and economy scarcely had a stable structure
at all, while millions of refugees crossed the newly established borders of India and
Pakistan, and while ex-princely states (over 500 of them) were being merged into
India or Pakistan. The Planning Commission as it now exists, was not set up until the
new India had adopted its Constitution in January 1950.

35
OBJECTIVES OF INDIAN PLANNING:
The Planning Commission was set up the following Directive principles :
 To make an assessment of the material, capital and human resources of the
country, including technical personnel, and investigate the possibilities of
augmenting such of these resources as are found to be deficient in relation to
the nation’s requirement.
 To formulate a plan for the most effective and balanced use of the country’s
resources.
 Having determined the priorities, to define the stages in which the plan should
be carried out, and propose the allocation of resources for the completion of
each stage.
 To indicate the factors which are tending to retard economic development, and
determine the conditions which, in view of the current social and political
situation, should be established for the successful execution of the Plan.
 To determine the nature of the machinery this will be necessary for securing
the successful implementation of each stage of Plan in all its aspects.
 To appraise from time to time the progress achieved in the execution of each
stage of the Plan and recommend the adjustments of policy and measures that
such appraisals may show to be necessary.
 To make such interim or auxiliary recommendations as appear to it to be
appropriate either for facilitating the discharge of the duties assigned to it or
on a consideration of the prevailing economic conditions, current policies,
measures and development programs; or on an examination of such specific
problems as may be referred to it for advice by Central or State Governments.

The long-term general objectives of Indian Planning are as follows:

 Increasing National Income
 Reducing inequalities in the distribution of income and wealth
 Elimination of poverty
 Providing additional employment; and
 Alleviating bottlenecks in the areas of : agricultural production, manufacturing
capacity for producer’s goods and balance of payments.

36
Economic growth, as the primary objective has remained in focus in all Five Year
Plans. Approximately, economic growth has been targeted at a rate of five per cent
per annum. High priority to economic growth in Indian Plans looks very much
justified in view of long period of stagnation during the British rule.

INTRODUCTION TO INDIABULLS:
Indiabulls is India’s leading Financial and Real Estate Company with a wide presence
throughout India. They ensure convenience and reliability in all their products and
services. Indiabulls has over 640 branches all over India. The customers of Indiabulls
are more than 4,50,000 which covers from a wide range of financial services and
products from securities, derivatives trading, depositary services, research & advisory
services, consumer secured & unsecured credit, loan against shares and mortgage &
housing finance. The company employs around 4000 Relationship managers who help
the clients to satisfy their customized financial goals. Indiabulls entered the Real
Estate business in the year 2005 with its group of companies. Large scale projects
worth several hundred million dollars are evaluated by them.

Indiabulls Financial Services Ltd is listed on the National Stock Exchange (NSE),
Bombay Stock Exchange (BSE) and Luxembourg Stock Exchange. The market
capitalization of Indiabulls is around USD 2500 million (29thDecember, 2006).
Consolidated net worth of the group is around USD 700 million. Indiabulls and its
group companies have attracted USD 500 million of equity capital in Foreign Direct
Investment (FDI) since March 2000. Some of the large shareholders of Indiabulls are
the largest financial institutions of the world such as Fidelity Funds, Goldman Sachs,
Merrill Lynch, Morgan Stanley and Farallon Capital.

In middle of 1999, when e-commerce was just about starting in India, Sameer Gehlaut
and his close IIT Delhi friend Rajiv Rattan got together and bought a defunct
securities company with a NSE membership and started offering brokerage services .
A Few months later, their friend Saurabh Mittal also joined them. By December 1999,
the company embarked on its journey to build one of the first online platforms in
India for offering internet brokerage services. In January 2000, the 3 founders
incorporated Indiabulls Financial Services and made it as the flagship company.

37
In mid 2000, Indiabulls Financial Services received venture capital funding from Mr
L.N. Mittal & Mr Harish Fabiani. In late 2000, Indiabulls Securities, a subsidiary of
Indiabulls Financial Services started offering online brokerage services and
simultaneously opened physical offices across India. By 2003, Indiabulls securities
had established a strong pan India presence and client base through its offices and on
the internet.

In September 2004, Indiabulls Financial Services went public with an IPO at Rs 19 a

share. In late 2004, Indiabulls Financial Services started its financing business with
consumer loans. In March 2005, Indiabulls Properties Private Ltd, a subsidiary of
Indiabulls Financial Services, participated in government auction of Jupiter Mills, a
defunct 11 acre textile mill owned by NTC in Lower Parel, Mumbai. Indiabulls
Properties private Ltd won the mill in auction and that purchase started Indiabulls real
estate business. A few months later, Indiabulls Real Estate company pvt ltd bought
Elphinstone mill in Lower Parel, another textile mill auctioned by NTC.

With real estate business gaining size, Indiabulls Financial Services demerged the real
estate business under Indiabulls Real Estate and each shareholder of Indiabulls
Financial Services received additional share of Indiabulls Real Estate through the
demerger. Subsequently, Indiabulls Financial Services also demerged Indiabulls
Securities and each shareholder of Indiabulls Financial Services also received a share
of Indiabulls Securities.

In year 2007, Indiabulls Real Estate incorporated a 100% subsidiary, Indiabulls

Power, to build power plants and started work on building Nashik & Amrawati
thermal power plants. Indiabulls Power went public in September 2009.

Today, Indiabulls Group has a networth of Rs 16,796 Crore & has a strong presence
in important sectors like financial services, power & real estate through independently
listed companies and Indiabulls Group continues its journey of building businesses
with strong cash flows.

38
MANAGEMENT TEAM
Indiabulls Group
 Mr Rajiv Rattan - Vice Chairman
 Mr Saurabh Mittal - Vice Chairman
 Mr Gagan Banga - Group Spokesperson
 Mr Ashok Kacker - Group President
 Mr Saket Bahuguna - Group CLO
 Mr Ashok Sharma - Group CFO
 Mr Ajit Mittal - Group Director
 Mr Gurbans Singh - Group Director
 Mr Tejinderpal Singh Miglani - Group CIO

Indiabulls Financial Services Limited

 Mr Gagan Banga - CEO
 Mr Ashwini Kumar Hooda - DMD
Indiabulls Real Estate Limited
 Mr Vipul Bansal - CEO
 Mr Narendra Gehlaut - Joint MD
Indiabulls Power Limited
 Mr Ranjit Gupta - CEO
 Mr Murali Subramanian - COO
Indiabulls Securities Limited
 Mr Divyesh Shah - CEO
 Mr Vijay Babbar – DMD

Indiabulls supports Money life Foundation in Empowering Investors:

“Moneylife Foundation”  in collaboration with Indiabulls, recently organized an
‘Investor, Empower Yourself’ seminar, which was held at the lush Town & Country
Club at New Gurgaon, in the National Capital Region (NCR), on Saturday, 7th May
2011. This was the first occasion for Moneylife Foundation to venture into other
territories outside Maharashtra. Indiabulls played a major role in helping this event
happen successfully.

39
The event witnessed over 300 attendees not only from Gurgaon but also from other
parts of National Capital Region (NCR), Delhi, Allahabad, Ludhiana, Chandigarh &
other cities from northern region of India. The venue was fully packed with eager &
curious investors. “Moneylife Foundation” expressed its gratitude towards helpful
team of Indiabulls led by Mr. Gagan Banga, CEO - Indiabulls Financial Services Ltd,
for making this event such a huge success.

The event started with introductory remarks & guidance by Mr. Gagan Banga, CEO -
Indiabulls Financial Services Ltd. Mr. Veeresh Malik, Consulting Editor, Moneylife,
Delhi gave a brief introduction about Moneylife Foundation.Then audience was
guided by Sucheta Dalal, Trustee - Moneylife Foundation and Managing Editor-
Moneylife, on How to be Safe with your money & Debashis Basu, Trustee -
Moneylife Foundation and Editor- Moneylife about How to be smart with your
investments. Mr. Sachin Choudhary, Director & Business Head - Indiabulls Housing
Finance Ltd, talked about Do's and Don’ts of Housing Mortgages. Ms. Sucheta Dalal
also explained the importance & procedure of Wills & Nominations.

This event helped people in understanding how to become an aware and empowered
investor. The attendees included both finically literate & new investors. They posted
number of intelligent questions which were adequately answered by all the speakers.
Empowering today’s investors by creating awareness and guiding them in taking wise
decisions when it comes to money or investments was the main objective of ‘Investor,
Empower Yourself’ seminar. During the Panel Discussion with the panel members
Sucheta Dalal, Debashis Basu & Sachin Choudhary, quite a few interesting &
informative issues regarding Investments were discussed. Mr. Monu Ratra, National
Sales Manager - Indiabulls housing Finance Ltd gave Vote of Thanks.

This event received many request and suggestions from audience about continuing
with such events all over India so that citizens of India will be more empowered
investors & ultimately nation will benefit from it. There were some requests from
audience to telecast further events live on television & internet so that those who are
unable to attend the event will also get the guidance. The knowledge shared about the
investments during the event was well appreciated by all.  

40
Moneylife Foundation has been instrumental in promoting financial literacy & pro-
customer advocacy in India.  Moneylife Foundation has been organizing such events
at the Moneylife Knowledge Centre in Mumbai, and also in various cities across
Maharashtra. The Foundation has completed 15 months of spreading financial literacy
& has hosted around 49 speakers and 61 events. Currently, more than 5,000 people
are members of the Foundation.

After the seminar, Indiabulls received feedbacks from some attendees congratulating
Indiabulls’ team about the success of seminar. Many of the attendees mentioned that
they are looking forward to such seminars in future.

Indiabulls has been participating in such Corporate Social Activities with many other
socially aware groups and trusts & Indiabulls is committed to continue in doing so in
future.

THE HUB:
The Hub at One Indiabulls Centre at Lower Parel is an intelligently designed business
centre in Mumbai In the past few years serviced office industry has been maturing in
India and today is a mainstream occupancy option for businesses of all sizes. Whether
a start-up, SME or a multi-national, companies are now opting for viable alternative
to leasing or the outright purchase of commercial workspace.

Thus managed business centers have emerged as an innovative solution to these

workspace requirements. The Hub at One Indiabulls Centre at Lower Parel is one
such intelligently designed business centre in Mumbai  that offers 25,000sqft of fully
equipped, serviced workspace not only suitable for large corporations but also for
small businesses and lean team set ups due to the option of small customized spaces.
The real advantage of The Hub is not just that it is more cost effective but also it
offers best possible working environment by offering conveniences such as advanced
security, pantry and maintenance services including IT and utility bills for electricity,
water & HVAC.

41
What’s more, those moving into The Hub serviced offices enjoy the added benefit of
cutting edge IT and telecom infrastructure, reception and secretarial support, hi-tech
meeting rooms and video conferencing suites as well as business lounge, food courts
and state of the art fitness centre.

Not to forget among various factors that can affect a business and its success and
growth, is the address or the location of the office especially those of newly
established enterprises. The Hub within a world class contemporary business complex
located between Nariman Point and Bandra Kurla Complex and in close proximity to
Bandra Worli Sea Link is undeniably in the finest commercial location in Mumbai’s
upcoming central business district- Lower Parel.Undeniably

, The Hub is a new age business centre that provides a very attractive proposition to
businesses of all sizes to help their own business grow and prosper.

INDIABULLS CSR INITIATIVE - DRUG ACCESS PROGRAM

FOR CANCER PATIENTS IN PARTNERSHIP WITH NOVARTIS
Indiabulls has taken up this noble project named “Novartis Oncology Access” in
partnership with Novartis (manufacturer of drugs) & Max foundation (NGO). We as
the financial partner are helping them assess actual income of patient & family &
based on assessed income; recommend the drugs donation slab as per approved
guidelines & SOP.

Novartis are the developers & makers of Glivec (Imatinib) - a medication for the
treatment of Ph+ chronic myeloid leukemia (CML) in chronic phase, accelerated
phase and blast crisis for both pediatric and adult patients.  This drug is also indicated
for adult patients with adjuvant, unresectable and/or metastatic c-kit / cd-117
gastrointestinal stromal tumors (GIST). Tasigna (nilotinib) a drug recently launched
by Novartis is used as medication for the treatment of Ph+ chronic myeloid leukemia
(CML) in chronic phase, accelerated phase and blast crisis for only adult patients.

42
NOA PROGRAM:
The NOA program is a drug access program for to help patients who have been
prescribed Glivec and Tasigna but cannot afford to pay for the entire treatment cost.
This program is run by Novartis along with its partner Physicians- enrolls patient
under this program after diagnosis, The MAX Foundation- independent NGO –
Assist patient  throughout the program in completing formalities & procurement of
medicines, Indiabulls Financial Services - independent body for financial evaluation
of patient, collection & safekeeping the submitted documents with confidentiality and
C&F outlets – Independent pharmacist, dispenses drugs to patients & manage drug
inventory.

INDIABULLS FINANCIAL SERVICES:

As a NOA partner we are performing task of the local credit evaluation agency which
works as an independent and unbiased body for the financial analysis and assessment
of the patient and family members’ earning capacity to afford medical expenses on
critical disease. The analysis bases on income levels assessment by way of financial
evaluation ,field verification, living standard, personal discussion with patient/ care
taker & guidelines as per standard operating procedure (SOP) which is prepared by
Novartis based on the WHO guidelines for drug donation programs using Business for
Social Responsibility’s (BSR) cost of living index, a well-established international
guide often used as eligibility criteria for determining access to drug assistance
programs.  Based on the family composite Income a suitable donation decision is
given.

CONTRACTIBILITY:
Indiabulls has designated a dedicated Help-Line Number: 022 30491720 that will
receive patient calls during office hours (9:00 a.m. to 6.00 p.m.) so it may handle in-
bound calls in response only to queries regarding the submission of requirements for
the NOA. For any medical or clinical queries, Indiabulls Financial Services refer
patients to their treating physician.

43
BUSINESSES:
Indiabulls Group is one of the country's leading business houses with business
interests in Power, Financial Services, Real Estate and Infrastructure . Indiabulls
Group companies are listed in Indian and overseas financial markets. The Net worth
of the Group is Rs 16,796 Crore and the total planned capital expenditure of the
Group by 2013-14 is Rs 35,000 Crore.

Indiabulls Power is currently developing Thermal Power Projects with an aggregate

capacity of 5400 MW. The first unit is expected to go on stream in May 2012. The net
worth of Indiabulls Power is Rs 3,917 Crore. The company has a total capital
expenditure of Rs 27,500 Crore. The company has been assigned 'BBB' rating.
Indiabulls Financial Services is one of India’s leading non-banking finance
companies providing Home Loans, Commercial Vehicle Loans and Secured SME
Loans. The company has a net worth of Rs 4,680 crore with an asset book of over Rs
18,500 Crore. The company has disbursed loans over Rs 45,000 Crore to over
3,00,000 customers till date. Amongst its financial services and banking peers,
Indiabulls Financial Services ranks amongst the top few companies both in terms of
net worth and capital adequacy. Indiabulls Financial Services has been assigned
‘AA+’ rating and has presence in over 90 cities and towns with a total branch network
of 140 branches.

Indiabulls Real Estate is among India's top Real Estate companies with development
projects spread across residential complexes, integrated townships, commercial office
complexes, hotels, malls, Special Economic Zones (SEZs) and infrastructure
development. Indiabulls Real Estate partnered with Farallon Capital Management
LLC of USA to bring the first FDI into real estate in the country. The company has a
networth of Rs 7,953 Crore and has purchased prime land, mostly in the metros and
other Tier 1 cities worth Rs 4,000 Crore in government auctions alone. Indiabulls
Real Estate is currently developing 57 million sqft into premium quality, high-end
commercial, residential and retail spaces. The company has been assigned 'A+' rating.

Indiabulls Securities is one of India's leading capital markets companies providing

securities broking and advisory services. Indiabulls Securities also provides

44
depository services, equity research services and IPO distribution to its clients and
offers commodities trading through a separate company. These services are provided
both through on-line and off-line distribution channels. Indiabulls Securities is a
pioneer of on-line securities trading in India. Indiabulls Securities’ in-house trading
platform is one of the fastest and most efficient trading platforms in the country.
Indiabulls Securities has been assigned the highest rating BQ-1 by CRISIL.

INDIABULLS FOUNDATION:
India has witnessed an economic transformation over the past two decades, translating
into higher incomes, better educational opportunities, improved infrastructure, a
dynamic private sector, and leadership in the global community. We have much to be
proud of.
But we also recognize that we have a long way to go. Over 700 million people live
under $2 a day. Learning levels in schools remain abysmally low,  most of our rural
population do not have access to basic health care, regular electricity, clean water, and
sanitation. India has some of the world’s worst statistics on basic development
indicators such as malnutrition, infant mortality, and gender discrimination.
As a society, we are at the confluence of accelerated economic progress and extreme
deprivation, all in the same country, at the same time.

As corporate citizens, we at Indiabulls are conscious of the opportunities and the

responsibility that this confluence presents. Investments to increase income levels of
our poorest people will expand business opportunities manifold. Investments to
improve education, health and skills training will improve the efficiency of the
economy. Protecting our environment will actually lower our costs of doing business.
Providing our youth with gainful employment and a chance to improve their lives will
ensure societal and political stability- setting a strong foundation for economic
sustainability. All of these investments will help create an inclusive society, ensuring
a sustainable return to our shareholders. The Indiabulls Group is keen to help in
building an inclusive and prosperous society and we are beginning our efforts in this
direction through Indiabulls Foundation.

45
One of the first initiatives of the Foundation is to support the development of rural
districts. Our aim is to support development across multiple domains in a district
based approach. Some of the areas where we want to help are in economic
development and skills training, access to drinking water, school education, public
health, agriculture and support to the local government.

Commercial Vehicle Loans

Indiabulls Commercial Vehicle Loans offers commercial auto loans to a variety of
business owners. We are a preferred financer with first time buyers as well as fleet
operators providing commercial vehicle loans with simple documentation and quick
results.
The Commercial Vehicle Finance provided by us helps the small and medium
operators to acquire vehicles with minimum hassle and documentation. We provide
customized financing options to suit your needs.

Our strength lies in the quick completion of transactions, long association with
transporters and the intimate knowledge of the market and its nuances.
Our finance schemes are easy to understand with no hidden costs.

46
 ORGANIZATION STRUCTURE- BOARD OF DIRECTORS

Indiabulls Securities
Trading Products

Cash Account Intraday Account Margin Trading

Trading Products of Indiabulls Securities

Indiabulls Securities provide three products for trading. They are

 Cash Account
 Intraday Account
 Margin Trading (Mantra)

Cash Account: It provides the client to buy 4 times of cash balance in his trading
account.
Intraday Product: It provides the client to buy 8 times of his cash balance in the
trading account.
Mantra Account: Also called as margin trading, is a special account to buy on
leverage for a longer duration

Indiabulls Financial Services Ltd

Indiabulls Financial Services Ltd. was incorporated in the year 2005.The Auditors of
Indiabulls Financial Services Ltd. are Deloitte, Haskins & Sells. The main activity of
this company is in relation to securities and stock brokerage. It was also responsible
for setting up one of India’s first trading platforms.

47
The subsidiaries of Indiabulls Financial Services Ltd. include:
 Indiabulls Capital Services Ltd.
 Indiabulls Commodities Pvt. Ltd.
 Indiabulls Credit Services Ltd.
 Indiabulls Finance Co. Pvt. Ltd
 Indiabulls Housing Finance Ltd.
 Indiabulls Insurance Advisors Pvt. Ltd.
 Indiabulls Resources Ltd.
 Indiabulls Securities Ltd.

The Bankers of Indiabulls Financial Services Ltd. are as follows:

 ABN-Amro Bank
 Andhra Bank
 Bank of Maharashtra
 Bank of Rajasthan Ltd.
 Canara Bank
 Citibank
 Corporation Bank
 Dena Bank
 HDFC Bank Ltd
 HSBC Ltd.
 ICICI Bank Ltd.
 IDBI Ltd
 Industrial Bank Ltd.
 ING Vysya Bank Ltd
 Karnataka Bank
 Punjab National Bank
 State Bank Of India
 Syndicate Bank
 Union Bank Of India
 Axis Bank Ltd.
 Yes Bank Ltd.

48
 DATA ANALYSIS & INTERPRETATION
OUTCRY SYSTEM
The broker has to buy or sell securities for which he has received the orders. For this,
the broker or his authorized representatives goes to the stock exchange. This method
is called the open outcry system. Basically the brokers shout while buying or selling
the securities. The floor of the stock exchange is divided into a number of markets
also known as ‘post pit’ or wing based on particular securities dealt there.

In the post pit or wing, the broker using ‘open outcry’ method makes an offer or bid
price. For making the necessary bargain, he quotes his purchase or sale price, also
known as offer or bid price. The dealer, to whom the price is quoted, quotes his own
price when the quotation of the dealer suits the broker, he may loose the bargain. If he
is not satisfied with the quote price, he may turn to some other dealer. On the close of
the bargain, the dealer as well as the broker makes a brief note of the particulars of the
deal. Such notes are made on some pad and on it the number of shares, the price
agreed upon, the name of the party, what membership number etc., are noted.

DISADVANTAGES OF OUTCRY SYSTEM:

The scope of manipulation, speculation and mal practice is more.
Signal were more important in the outcry system any member who could not interpret
the buy/sell signal correctly often landed himself in disaster situation. In audibility
was another disadvantage of the outcry system.
Due to the above disadvantages of the outcry system the Networth Stock Broking
Ltd has shifted from outcry system to online trading from February 29th 1997.

MANUAL TRADING
Trading procedure before introduction of online trading
Trading on stock exchanges is officially done in the trading ring. In the trading ring
the space is provided for specified and non-specified sections, the members and their
authorized assistants have to wear a badge or carry with them an identity card given
by the exchange to enter the trading ring. They carry a sauda book or confirmation
memos, duly authorized by the exchange and carry a pen with them. The stock
exchanges operations are floor level are technical in nature .Non-members are not
49
permitted to enter in to stock market. Hence various stages have to be completed in
executing a transaction at a stock exchange .The steps involved in this method of
trading have given below:

CHOICE OF BROKER:
The prospective investor who wants to buy shares or the investors, who wants to sell
shares and transact business, have to act through member brokers only. They can also
appoint their bankers for this purpose as per the present regulations.

PLACEMENT OF ORDER:
The next step is the placing order for the purchase or sale of securities with a broker.
The order is usually placed by telegram, telephone, letter, fax etc or in person. To
avoid delay, it is placed generally over the phone. The orders may take any one of the
forms such as At Best Orders, Limit Order, Immediate or Cancel Order, Limited
Discretionary Order, and Open Order, Stop Loss Order.

EXECUTION OF ORDER OR CONTRACT:

Orders are executed in the trading ring of the BSE. This works from 11:30 to 2.30
P.M on all working days Monday to Friday, and a special one-hour session on
Saturday. The members or the authorized assistants have to wear a badge given by the
exchange to enter into the trading ring. They carry a sauda Block Book or
conformation memos, which are duly authorized by the exchange when the deal is
struck; both broker and jobber make a note in their sauda block books. From the sauda
book, the contract notes are drawn up and posted to the client. A contract note is
written agreement between the broker and his clients for the transaction executed.

DRAWING UP AND BILLS:

Both sale and purchase bills are prepared along with the contract note and it is posted
on the same day or the next day. This in a purchase transaction, once the shares are
delivered to the client effects payment for the purchases and pays the stamp fees for
transfer, a bill is made out giving the total cost of purchase, including other expenses
incurred by the broker in the price itself. With this, the process ends.

50
DEMATERLIZATION:
Dematerialization is the process by which physical certificates of an investor are
converted to an equipment number of securities in electronic from and credited in the
investor account with his DP. In order to dematerialize the certificates, an investor has
to first open an account with a DP and then request for the Dematerialization Request
Form, which is DP and submit the same along with the share certificates. The investor
has to ensure that he marks “Submitted for Dematerialization” on the certificates
before the shares are handed over to the DP for demat. Dematerialization can only be
done to those certificates, which are already registered in your name and belong to the
list of securities admitted for Dematerialization at NSDL.
Most of the active scrip’s in the market including all the scrip’s of S&P CNX NIFTY
and BSE SENSEX have already joined NSDL. This list is steadily increasing.
Briefly, the process is as follows: after completion of transfer, the investor gets the
option to dematerialize such shares. Investor’s willing to exercise this option sends a
Demat request along with the option letter sent by the company to his DP. The
company or its R&T agent would confirm the Demat request on its receipt from the
DP to reduce risk of loss in transit.
Dematerialized shares do not have any distinctive or certificate numbers. These shares
are fungible-which means that 100 shares of a security are the same as any other 100
shares of the security. Odd lot shares certificates can also be dematerialized.
Dematerialization normally takes about fifteen to thirty days. To get back
dematerialized securities in the physical form, request DP for Rematerialization of the
same is made.

Rematerialization is the process of converting electronic shares in to physical

shares.

BENEFITS OF DEMAT:
 It reduces the risk of bad deliveries, in turn saving the cost and wastage of
time associated with follow up for rectification. This has lead to reduction
in brokerage to the extent of 0.5% by quite a few brokerage firms.
 In case of transfer of electronic shares, you save 0.5% in stamp duty. You
avoid the cost of courier / notarization.

51
  You can receive your bonuses and rights issues into your DA as a direct
credit, this eliminating risk of loss in transit.
 You can also expect a lower interest charge for loans taken against Demat
shares as compared to loans against physical shares.
 There is no lost in transit, thus the overheads of getting a duplicate copy in
such circumstances is reduced.
 RBI has also reduced the minimum margin to 25% for loans against
dematerialized securities as against 50% for loans against physical
securities.

TRADING AND SETTLEMENT AT INDIA BULLS

The NSE first introduced online trading in India. The Online trading system imparted
a greater level of transparency and investors preferred exchanges that offered Online
trading because of the following factors:

 The ease of operation from the view of the both members and the investors.
 Increase in the confidence of the investors because of higher level of
transparency.
 Facilities better monitoring of the market by the exchange.
 The best price achieved in buying and selling.

All these resulted in ever-increasing volumes on the exchanges offering the online
trading.

TRADING PROCEDURE AT INDIABULLS STOCK BROCKING:

India Bulls deals in buying and selling equity shares and debentures on the National
Stock Exchange (NSE), the Bombay Stock Exchange (BSE) and the Over-The-
Counter Exchange of India (OTCEI).

India Bulls is provided with a computer and required software from their registered
stock exchanges. These centers are called “Broker Work Stations”. These computers
are connected to the server at the stock exchanges through cable.
The member or broker sitting in his office can send the quotations, orders,
negotiations, deals, in-house deals, auction orders etc., through the computer. The

52
Central trading system (CTS) will accept these orders and send it for match. If there is
any mistake in the order, CTS will reject the orders and send respective error message
to the member concern. All these operations are in built. The main objective of CTS is
to monitor the Stock Exchanges operations.
Order placed by the broker will be sent for a match and if the match is found suitable,
the transaction will be executed. Otherwise, the order will be deleted automatically
after completion of trading time. The carry forward transactions (Good Till
cancellation) are forwarded to the next day. Even if the match is not found with in the
prescribed period, the order will not cancel.

TRADING SESSION
Trading timings are from 9:55 A.M. to 3:30 P.M. on all 5 days of the trading period.
Monday to Friday is the trading period in all the stock exchanges. SEBI has stipulated
that all the stock exchanges in India must have same trading period.

BROKER WORK STATION:

At the broker workstation the BBO’s, the last traded price, the day‘s opening price,
previous day’s closing price, highest and lowest prices, the weighted average price
and total trade value will be available continuously, as the BBO for each scrip.
Other information will be available on query from the BWS. These include top
gainers /losers of the day. Trader-wise, scrip wise net position, client wise net
position, top scrip by the volume/value, market summary etc.
Brokers are also provided with information relating to the companies in the matter of
Book closure, Dividend declarations, resolutions in board meeting, information about
liquidated companies, company report etc.

ORDERS:
 Orders can be done one at a time or in a batch mode.
 The submitted order will be accepted at the CTS, after validation if it finds any
invalid reason the order is return back to the BWS, with the appropriate error
message.
 If Accepted at the CTS it will be added to the local pending order book.

53
  The order will then be taken up for matching, if it is a buy order the system
tries to find a sell order, which fits the requirement of the buy order, when
such match is found a trade gets executed. Each trade involves two brokers
and respective traders who sent the order. Both these traders are informed of
the trade being executed at their respective BWS.
 At the BWS the trade is added to the local trade book.

Orders sent by the brokers are two types:

 Good for the day (GFD)
 Good till cancellation(GTC)

GOOD FOR THE DAY:

This is also called as “market order”. For an order if the member selects the deal as
good for the day, the order is treated as market order. If a “best bid” founds match
with “best order” then the transaction gets executed. If the match is not found then
after trade time the order gets cancelled that day. Next day he has to place a new
order.

For example if a member wants to purchase 1000 shares of Wipro info @ 400 each
through Good for Day order. If the correct match is not found, order gets cancelled
automatically and new quotation has to be placed the next day.

GOOD TILL CANCELLATION:

This order is forwarded to the last trading day of that settlement period. This is also
called as carry forward order like GFD; broker has to select the option of GTC for the
order. If the order finds match with in the trading settlement period, the order is
executed. If no match is found, the order is cancelled on the last day of settlement
period. This order is not carried forward to the next settlement period.

For example, if a member a place purchase order of 500 shares of SBI @ 690 per
share and selects the order as GTC and place an order. If the match is not found on
that day it will be forwarded to the next day until trading settlement period day

54
SETTLEMENT OF TRANSACTIONS:
Clearing of transaction in the form of shares and cash is called settlement. Buyers will take
the delivery of shares through the depository participants like Networth Stock Broking Ltd
and others.
Finally, the settlement is made by means of delivering the share certificates along with the
transfer deeds. The transferor (or the seller) duly signed transfer deed. It bears a stamp of the
selling broker. The buyer then fills up the certificates fills up the particulars in the transfer
deed. Settlement can be done in the following way.

Spot settlement: under this method, the delivery of securities and payment for them
are affected on the day of the contract itself.

Rolling settlement: Under this rolling settlement the trading is on “T+2”,basis i.e. if
Monday is trading day then Wednesday is the paying day . In case on non-delivery,
the securities will go for auction.

DETAILS OF PROCEDURES:
Delivery in : The members who are in pay-out position delivers share certificates in
to clearing house within the settlement period along with the delivery Chelan filled in
with the details of share certificates which has folio numbers or distinctive numbers
etc.

Delivery out: The buyer of shares who made pay in position will take delivery of
shares from the clearing house.

Pay-in: The member who is in paying position shall pay for value of shares with in
the trading settlement period (T+2).

Payout: The cheques paid in the clearinghouse will be paid to members who are in
paying position.

55
 L o g in

B u y t r a n s c a t io n S e ll t r a n s c a t io n
T h e s y s te m w ill c h e c k y o u r
T h e s y s te m w ill c h e c k b u y in g d p ac c o u n t q u an tity
lim its

O rd e rs ac c e p te d R e je c t e d o r d e r s w o u ld b e o rd e rs ac c e p te d
c o m m u n ic a t e d a lo n g w it h r e a s o n s

y o u r o r d e r is t r a n s m it t e d t o e x c h a n g e f o r e x e c u t io n

p e n d in g b u y o r d e r s o n e x e c u t io n p e n d in g s e ll o r d e r s
w o u ld b e d is p la y e d o f y o u r o rd e rs w o u ld b e d is p la y e d
o n y o u r s c re e n o n y o u r s c re e n

y o u m a y e d it y o u r y o u m a y d e le t e y o u m a y e d it y o u r y o u m a y d e le t e y o u r
p e n d in g o r d e r y o u r p e n d in g o r d e r p e n d in g o r d e r p e n d in g o r d e r

f la s h e d o n y o u r c o n f o r m a t io n c o u l c o n t r a c t n o t e w o u ld
s c r e e n im m e d ia t e ly d b e s e n d to y o u r b e s e n t t o b y m a il
o n e x e c u t io n e - m a il a n d m o b ile o r h a n d d e liv e r y

The given flow chart clearly explains the process of online trading

STOCK TRADES:
The stock order entry screen, located at the top of the platform, allows you to buy,
sell, and sell short. The Save to Basket button can save any order that you may want to
place later.

56
 To Place An Order:
1. Click the Equities tab at the top of the page. The screen will show
"EQUITIES" at the top right-hand corner to let you know that you are in
stock-trading mode.
1. Select Buy, Sell, or Short from the drop-down menu below SIDE.
3. Enter the number of shares in Qty box.
4. Enter the symbol m Symbol box.
5. For a market order, click Market. For a limit order, enter the limit price
and click the Limit button. For a Good Till Canceled order, click GTC.
5. Click Submit to send the order,
6. If it is a GTC order, select 15 Days or 30 Days for the GTC order. Click
OK to send the order. If you do not want to send the order or if you want
to make changes, click Cancel.

8. A window will appear (as the picture) asking you to confirm the order. If all
details are correct, click OK to send the order. If you do not want to send the
order, or if you want to make changes, click Cancel.

57
TO SAVE AN ORDER INTO THE BASKET :
You can enter an order and click the shopping cart icon to save it. Click Basket tab
to see the trades you have saved. Orders saved to the Basket are not sent to the
market until you decide to do so. This is not the same as placing Good Till Canceled
or other open orders.

TO PLACE AN ORDER FROM THE WATCH LIST:

You can also place an order from your Watch List

OPTION QUOTES AND OPTION TRADES

TO GET OPTION QUOTES:
 Click the Option Chain tab to open the option quote screen.
 Enter the stock symbol in the Equity Symbol field.
 Select the strike price from By Strike.
 Select the expired month from the By Exp. Month.
 Select the range of option quotes you would like to view from
Calls, Puts, or All
 Click Go. The screen will list all the option symbols and current Market prices
associated with your criteria.

To Place an Option Trade:

 Click the Option button at the top left hand corner to open the option
order entry screen. OPTION will appear at the upper right-hand corner to
let you know that you are in Option mode.

58
  Follow the above steps to open the option quote screen and get the option
symbol.
 In the Option Chain quote screen, double click the symbol, which you
would like to place an order.
 The option order entry screen at the top will show the real-time quote of the
option.
 Select: Buy to Open, Sell to Open, Buy to Close, or Sell to Close from the
drop-down menu below SIDE.
 Enter the number of contracts in the # of Contracts field.
 Click Market, or enter a limit price and click Lim (Limit). For a Good Till
Canceled order, click GTC.
 Click Submit
 If it is a GTC order, select 15 Days or 30 Days for the GTC order. Click
OK to send the order. If you do not want to send the order or if you want to
make changes, click Cancel.

 A window will appear (as the picture) asking you to confirm your order. If the
information is correct, click OK to send the order. If you click Cancel, the
order will not be sent to market.

LEVEL I QUOTE
The Level I real-time streaming quote updates automatically every five seconds
and continually throughout market hours.
To Get Quotes
1. Enter a symbol in the field located on the left-hand side. You can also click
the small arrow at the right to select a symbol you previously entered in the
same day.

59
 2. Press the Enter key on your keyboard or select Get Quotes (under the
Select Action drop-down menu) to display real-time streaming quotes.
a) Detailed Quotes:
Detailed quote, intra-day charts, and the latest news.
b)News:
Recent News.
c) Charts:
Six different chart types - intra-day, one month, three months, six months, one year
and Interactive.
d) SEC Filings:
The company's reports to the SEC.
e) Profile
A description of the company and fundamental information about its stock.
f) Historical:
The open, high, low and closing prices, change and volume of any given stock in the
past six years.
Bid:
Highest price at which someone currently offers to buy the stock.
Bid Size:
Number of shares, in hundreds, of the offer at the current Bid.
Change:
The difference between the price of the Last trade and the stock's previous Close
price.
% Change:
The percent difference between the price of the Last trade and the stock's previous
Close price.
Close:
The last trade price on the previous trading day.
High:
Highest trade price of the stock during the current trade date.
Last:
Most recent trade price of the stock during the current trade day.
Low:
Lowest trade price of the stock during the current trade day.
60
Open:
The opening price for the stock on the current trade date.
Tick:
Located to the right of the symbol. Indicates whether the current Bid is higher or
lower than the previous Bid.
Current Bid is higher:
Tick will show an arrow pointing up.

Current Bid is lower:

Tick will show an arrow pointing down.
Current Bid is same:
Tick will show "UC" (unchanged).
Volume:
Total number of shares of the stock traded during the current trade date
Close:
The last trade price on the previous trading day.
High:
Highest trade price of the stock during the current trade date.
Last:
Most recent trade price of the stock during the current trade day.
Low:
Lowest trade price of the stock during the current trade day.
Open:
The opening price for the stock on the current trade date.
Tick:
Located to the right of the symbol. Indicates whether the current Bid is higher or
lower than the previous Bid.
Current Bid is higher:
Tick will show an arrow pointing up.
Current Bid is lower:
Tick will show an arrow pointing down.
Current Bid is same:
Tick will show "UC" (unchanged).
Volume:
61
Total number of shares of the stock traded during the current trade date

ACCOUNT SCREEN
To View Account Information
1. Click the Accounts tab to see your account information.
To Switch to another Account
2. Click the Accounts tab to open the Account screen.
3. Click Change Account button.
4. Select the new account number.

ORDER SCREEN
To View an Order You Placed
1. Click the Orders tab. The system will show all intra-day (same day)
1. Trades and their current status, which including pending, canceled,
filled.

62
To View Detailed Log for a Specific Order
1. Open the Order screen by following the above steps.
2. Click order sequence number in the UOI field.
3. Click TRANSACTIONS button.

1. A detailed order log will be displayed in a pop-out window.

2. Click OK to close the window.

To Cancel an Open Order

1.Open the Order screen by following the above steps.
2.To cancel one open order, select it and click Cancel.

To cancel all open orders, click Cancel All.

To Export Order Records to an Excel File

1. In the Order screen, click Import to Excel at the bottom.
2. Choose the location on your computer where you want to save the file and
click Save.

BASKET TRADING
You can fill your basket with orders in advance, and place them later with just one
click.
To Set Up Your Basket
1. Click the Basket tab to open the Basket window.
2. Select a basket from the drop-down menu at left.

63
 3. To re-name the basket, click Rename Cart, type a new name into the
pop-up window, and click OK.

To Enter Orders Directly into the Basket

1. Click the Basket tab to open the Basket window.
2. Select a basket from the drop-down menu at left.
3. Click New Row at left to add stocks to the basket. OK.
4. Double click the empty field under Action and select your action:
Buy, Sell or Short.
5. Double click on the empty field below Qty until it changes to written
mode. Enter the number of shares you would like to trade.
6. Double click on the empty field under Symbol until it changes to written
mode. Enter the stock symbol.
7. Double click on the empty field under Price. Enter a price for a limit
order, or select Mkt for a market order.
8. Double click on the empty field under Account. Choose the account
number
from the drop-down menu.
To Save an Order to a Basket from the Order Entry Screen
You can save an order to a basket from the order entry screen and send the order to
market later.
1. In the Order screen, enter all the required information about the order.
2. Click the shopping cart icon.
3. From the drop-down menu, select the basket in which you want to save the
order. Click OK to save, or Cancel to not save the order into the basket.

64
Remove an Order from the Basket
1. Click the Basket tab to see the Basket screen, and select one of
the baskets from the drop-down menu.
2. Select the order you want to remove.
3. Click Remove at right.
To Get Quotes for Stocks in the Basket
1. Click the Basket tab to see the Basket screen, and select one of
the baskets from the drop-down menu.
2. Select the order for which you would like to see a quote.
To Execute an Order in the Basket
1. Click the Basket tab to see the Basket screen, and select one of
the baskets from the drop-down menu.
2. To execute all orders listed in the basket, click Execute AH.
3. To execute only one order, select the order and then click Execute.
When you Execute trade(s) in the Basket, the Basket Order(s) will still display in the
basket until you remove the order(s).

65
KEYS USED FOR TRADING

 Fl - BUY F2 - SELL
 F3 - PENDING ORDERS (BUYING & SELLING)
 F6 - MARKET DEBTS (COMPANY ENQUIRY)
 F7 - ARBITRAGE ORDERS
 F8 - HOW MANY TRADING HAS BEEN DONE
 SHIFT+F8 - NET POSITION OF THE COMPANY'S SHARES
 CTRL+F8 - SETTLEMENT OF NET POSITION FOR EXPOSURE
 SHIFT+F9 - NEWS
 F ll - ADDING A NEW COMPANY IN TO THE N/W
 F12 - TEMPORARY LOCKING OF WINDOW

66
Company :ITC LTD. 500875
Period: 02-Dec-2016 to 20-Jan-2017

No. of No. of Total

Date Open High Low Close WAP
Shares Trades Turnover
323.6
2/12/16 320.00 318.75 321.35 321.48 2,16,773 4,396 696,881,84
0
321.0
3/12/16 321.05 318.00 319.20 319.13 5,63,232 2,815 17,97,44,228
5
319.6
4/12/16 319.00 312.15 313.25 315.31 2,23,688 4,202 70,53,10,63
5
318.0
5/12/16 317.00 307.80 308.90 311.67 5,03,233 11,544 15,68,42,629
5
312.9
6/12/16 310.00 308.90 311.65 311.31 9,25,947 9,839 28,82,56,560
5
317.5
9/12/16 317.50 310.95 313.00 313.07 2,83,442 4,991 88,737,186
0
10/12/1 318.2
314.70 313.15 317.75 316.53 4,49,104 9,363 14,21,54,889
6 0
11/12/1 321.7
317.85 317.55 320.90 320.34 3,54,906 6,342 11,36,90,588
6 0
12/12/1 322.0
320.80 315.75 316.75 319.06 2,68,599 5,446 8,56,99,721
6 0
13/12/1 317.5
317.50 312.70 315.05 315.20 2,95,394 4,137 9,31,09,501
6 0
16/12/1 315.4
315.40 310.75 313.00 312.33 20,19,231 6,285 63,06,75,551
6 0
17/12/1 315.8
314.00 312.40 315.45 314.40 2,57,684 3,056 8,10,14,785
6 5
18/12/1 317.1
316.00 313.00 315.75 315.17 2,76,928 4,444 8,72,80,081
6 0
19/12/1 316.9
316.25 311.10 313.80 313.33 9,16,435 5,759 28,71,46,010
6 5
20/12/1 317.0
317.00 310.45 315.20 313.20 4,73,400 6,314 14,82,67,328
6 0
23/12/1 319.5
315.95 315.00 319.20 318.05 3,31,764 3,809 10,55,17,658
6 5
24/12/1 320.0
319.40 317.70 318.90 319.02 1,63,835 4,128 5,22,66,022
6 0

67
26/12/1 321.1
320.00 318.00 319.95 319.01 6,83,147 3,773 21,79,27,346
6 0
27/12/1 323.6
321.00 320.00 322.10 321.99 3,31,237 3,883 10,66,54,393
6 5
30/12/1 324.0
322.80 320.30 322.40 322.32 2,10,356 4,130 6,78,02,437
6 0
31/12/1 324.0
322.50 320.50 321.60 322.35 1,55,619 3,071 5,01,63,904
6 0
323.5
1/01/17 323.30 321.35 322.10 322.55 1,19,908 3,462 3,86,76,807
0
325.0
2/01/17 323.70 314.95 315.40 319.90 2,40,700 3,351 7,70,00,565
0
315.6
3/01/17 315.00 311.00 314.85 313.77 14,42,833 15,272 45,27,20,629
5
317.0
6/01/17 316.80 313.90 316.00 315.69 6,22,390 6,245 19,64,81,498
0
317.5
7/01/17 316.10 313.00 316.75 315.98 4,79,668 7,658 15,15,63,808
0
317.8
8/01/17 317.80 313.90 316.80 316.61 4,04,603 4,471 12,80,99,698
0
316.8
9/01/17 316.80 313.00 315.45 314.99 3,36,416 4,466 10,59,66,584
0
10/01/1 324.4
317.00 314.10 322.45 320.96 4,45,077 9,612 14,28,49,745
7 5
13/01/1 326.1
324.00 322.60 325.50 324.89 3,78,260 6,050 12,28,94,122
7 0
14/01/1 329.9
325.95 323.55 324.15 326.69 2,68,173 5,296 8,76,10,742
7 5
15/01/1 329.0
325.00 321.55 328.35 325.83 3,03,227 5,376 9,87,99,546
7 0
16/01/1 330.5
328.00 323.60 325.70 326.28 2,34,755 3,952 7,65,95,729
7 0
17/01/1 328.2
326.15 322.50 324.85 325.05 6,48,111 9,374 21,06,66,914
7 0
20/01/1 330.5
328.00 320.00 330.20 328.78 4,77,269 8,433 15,69,14,137
7 0

68
 INTERPRETATION:
On open value has risen from 320.00 to 328.00 than compare to higher value of EPS
323.6 to 330.5. Then coming to lower price from 318.75 to 320. Wholly the
conclusion is 321.35 to 330.2 rise.
The comings to the volume on the same dates or days volumes are increased. Because
on this session ITC LTD value is raised i.e. percentage of 3.18%.

Company :INFOSYS LTD. 500209

Period: 02-Dec-2016 to 20-Jan-2017

No. of No. of 

Date Open High Low Close WAP Total Turnover
Shares Trades
2/12/16 3,354.00 3,373.90 3,328.40 3,338.45 3,350.21 54,607 2,954 18,29,44,890
3/12/16 3,324.00 3,359.40 3,324.00 3,348.45 3,347.59 86,452 2,211 28,94,05,971
4/12/16 3,349.00 3,386.30 3,338.80 3,365.00 3,371.83 66,417 4,347 22,39,47,098
5/12/16 3,375.30 3,396.65 3,344.75 3,351.15 3,359.91 45,934 3,102 15,43,33,937
6/12/16 3,350.00 3,350.00 3,320.00 3,326.60 3,330.07 1,43,569 3,812 47,80,94,448
9/12/16 3,350.00 3,384.00 3,322.50 3,337.45 3,342.05 29,156 2,374 9,74,40,941
10/12/16 3,310.00 3,389.65 3,310.00 3,370.30 3,366.98 78,495 4,140 26,42,91,114
11/12/16 3,361.00 3,379.00 3,342.00 3,371.40 3,367.88 85,492 3,603 28,79,26,832
12/12/16 3,370.00 3,385.15 3,350.00 3,363.40 3,366.70 29,737 2,952 10,01,15,566
13/12/16 3,352.00 3,380.00 3,345.00 3,373.85 3,363.70 59,908 3,409 20,15,12,815
16/12/16 3,370.00 3,460.00 3,354.60 3,449.85 3,443.33 1,27,249 9,034 43,81,59,758

69
17/12/16 3,444.35 3,483.20 3,444.35 3,456.45 3,462.94 1,06,076 4,454 36,73,34,328
18/12/16 3,450.50 3,470.00 3,448.00 3,457.80 3,456.98 70,981 1,887 24,53,80,051
19/12/16 3,459.00 3,540.00 3,455.80 3,514.45 3,508.44 83,431 6,345 29,27,12,823
20/12/16 3,509.00 3,569.90 3,509.00 3,552.30 3,541.54 67,026 6,187 23,73,75,454
23/12/16 3,502.00 3,538.20 3,463.00 3,468.65 3,486.53 75,324 7,045 26,26,19,144
24/12/16 3,484.00 3,502.00 3,465.40 3,486.35 3,484.89 70,363 4,389 24,52,07,179
26/12/16 3,485.00 3,530.00 3,482.10 3,515.55 3,505.45 54,678 3,814 19,16,71,108
27/12/16 3,531.00 3,570.00 3,525.35 3,562.25 3,559.05 85,505 4,825 30,43,16,609
30/12/16 3,556.00 3,575.00 3,477.20 3,501.65 3,504.95 76,547 5,787 26,82,93,262
31/12/16 3,505.00 3,519.80 3,480.00 3,485.50 3,490.19 42,972 2,461 14,99,80,622
1/01/17 3,491.00 3,497.00 3,461.40 3,466.40 3,471.60 23,588 2,034 8,18,88,167
2/01/17 3,466.40 3,507.40 3,464.95 3,474.75 3,483.70 36,669 2,891 12,77,43,887
3/01/17 3,471.00 3,572.05 3,456.00 3,565.45 3,536.58 79,789 7,999 28,21,79,816
6/01/17 3,580.00 3,581.00 3,470.00 3,514.20 3,527.10 73,512 6,577 25,92,84,029
7/01/17 3,510.00 3,522.25 3,447.00 3,457.40 3,477.99 40,126 3,776 13,95,57,954
8/01/17 3,466.00 3,474.00 3,420.85 3,428.50 3,437.02 41,931 3,802 14,41,17,775
9/01/17 3,435.60 3,481.95 3,417.30 3,451.05 3,453.11 91,099 12,049 31,45,74,759
10/01/17 3,494.00 3,575.20 3,449.00 3,548.90 3,536.97 4,94,995 36,950 1,75,07,83,352
13/01/17 3,572.00 3,674.40 3,572.00 3,665.70 3,660.30 2,00,784 14,872 73,49,30,341
14/01/17 3,636.00 3,697.30 3,636.00 3,688.85 3,671.85 58,999 6,366 21,66,35,324
15/01/17 3,685.10 3,723.10 3,678.00 3,710.55 3,704.74 1,37,443 8,415 50,91,90,154
16/01/17 3,704.00 3,737.00 3,695.00 3,724.70 3,718.42 1,62,039 5,773 60,25,28,864
17/01/17 3,725.00 3,759.90 3,723.10 3,728.05 3,739.84 1,38,160 11,792 51,66,96,133
20/01/17 3,712.00 3,760.00 3,704.00 3,749.90 3,729.71 1,83,787 9,524 68,54,72,685

INTERPRETATION:
On open value risen from 3354.00 to 3712.00 than compare to higher value of EPS
3373.90 to 3760.00. Then coming to lower price from 3328.40 to 3704.00. Wholly
the conclusion is 3338.45 to 3749.90 raised.

70
 The comings to the volume on the same dates or days volumes are increased. Because
on this session INFOSIS LTD value is raised i.e. percentage of 34.90%.

Company :ICICI BANK LTD. 532174

Period: 02-Dec-2016 to 20-Jan-2017

No. of No. of 

`Date Open High Low Close WAP Total Turnover
Shares Trades
2/12/16 1,068.20 1,101.00 1,068.20 1,088.90 1,092.65 2,88,994 11,360 31,57,69,399
3/12/16 1,086.00 1,098.80 1,078.45 1,086.10 1,089.58 3,38,889 10,050 36,92,46,932
4/12/16 1,076.65 1,078.00 1,058.20 1,065.15 1,066.09 4,44,739 11,391 47,41,32,679
5/12/16 1,100.55 1,139.90 1,100.55 1,136.10 1,130.27 7,94,905 31,193 89,84,56,640
6/12/16 1,132.40 1,145.20 1,122.80 1,142.75 1,137.96 5,01,749 12,484 57,09,68,704
9/12/16 1,197.50 1,206.20 1,191.50 1,201.75 1,200.02 7,65,091 26,451 91,81,23,805
10/12/16 1,200.00 1,203.00 1,154.05 1,159.75 1,166.97 5,32,179 22,682 62,10,34,460
11/12/16 1,151.00 1,172.70 1,141.35 1,159.45 1,150.20 3,36,634 9,617 38,71,95,373
12/12/16 1,158.20 1,158.20 1,128.00 1,132.05 1,141.68 2,43,919 8,419 27,84,76,951
13/12/16 1,116.00 1,119.90 1,080.20 1,085.45 1,093.23 5,03,307 24,750 55,02,28,240
16/12/16 1,087.00 1,104.00 1,086.00 1,097.40 1,097.21 1,85,879 7,885 20,39,48,887
17/12/16 1,111.00 1,121.85 1,090.00 1,098.25 1,109.16 2,50,670 8,467 27,80,33,365
18/12/16 1,087.35 1,134.00 1,082.30 1,096.80 1,106.10 5,94,340 15,615 65,73,99,652
19/12/16 1,106.00 1,112.00 1,058.30 1,063.70 1,069.15 4,80,961 19,633 51,42,20,990
20/12/16 1,065.50 1,089.90 1,065.50 1,087.25 1,080.45 2,90,626 9,970 31,40,06,067
23/12/16 1,085.05 1,107.00 1,085.05 1,096.65 1,099.86 2,41,144 7,108 26,52,25,769
24/12/16 1,102.00 1,105.75 1,088.50 1,098.30 1,098.68 2,18,137 6,458 23,96,62,407
26/12/16 1,098.00 1,103.60 1,092.20 1,098.25 1,097.49 1,75,497 5,401 19,26,05,422
27/12/16 1,107.00 1,114.00 1,000.00 1,107.90 1,108.23 1,68,404 5,871 18,66,30,431
30/12/16 1,109.00 1,123.40 1,092.55 1,095.40 1,101.27 1,28,563 5,037 14,15,82,005
31/12/16 1,100.00 1,108.00 1,094.95 1,098.45 1,098.96 1,29,522 4,449 14,23,39,208
1/01/17 1,102.00 1,105.90 1,092.35 1,097.40 1,097.49 83,230 2,909 9,13,43,985
2/01/17 1,097.00 1,118.00 1,070.00 1,075.10 1,099.05 3,27,317 11,597 35,97,36,398
3/01/17 1,063.00 1,074.80 1,046.00 1,067.00 1,060.09 3,62,808 12,961 38,46,08,569
6/01/17 1,066.00 1,066.40 1,035.00 1,040.70 1,044.12 3,50,403 9,950 36,58,64,025
7/01/17 1,044.90 1,059.10 1,025.10 1,049.95 1,041.98 3,73,958 12,229 38,96,58,467
8/01/17 1,059.00 1,063.00 1,042.60 1,054.05 1,054.64 2,12,358 7,582 22,39,62,248

2/12/17 1,060.00 1,065.25 1,042.80 1,051.50 1,057.18 3,69,874 5,994 39,10,25,168

71
3/12/17 1,050.7 1,055.00 1,015.00 1,024.55 1,034.77 2,73,730 9,928 28,32,46,728
4/12/17 1,028.85 1,062.45 1,027.00 1,056.20 1,048.19 2,18,157 7,677 22,86,69,908
5/12/17 1,054.90 1,060.40 1,027.00 1,037.55 1,045.17 1,79,313 6,164 18,74,12,218

INTERPRETATION:
On open value has increased from 1068.20to 1035.00. Then compare to higher value
of EPS 1101.00 to 1047.50. Then coming to lower price from 1068.20 to 1028.00.
Wholly the conclusion is 1088.90 to 1044.10 increased.
Then coming to the volume on the same dates or days volumes are increased. Because
totally this session ICICI LIMITED. EPS value is increased i.e. percentage of
10.87%.

Company :HDFC BANK LTD. 500180

Period: 02-Dec-2016 to 20-Jan-2017

Date Open High Low Close WAP No. of No. of Total

72
 Shares Trades Turnover
2/12/16 661.00 665.00 659.00 661.05 661.15 2,44,432 3,174 16,16,06,158
3/12/16 655.00 662.00 653.05 657.15 657.14 3,57,347 5,085 23,48,25,716
4/12/16 657.00 659.35 652.00 658.00 656.96 2,03,970 5,868 13,40,00,857
5/12/16 670.00 690.00 670.00 687.75 685.46 5,87,747 12,871 40,28,74,969
6/12/16 688.00 689.95 678.90 682.30 682.00 1,77,713 3,223 12,11,99,886
9/12/16 704.70 714.80 693.00 696.10 703.45 6,97,655 7,866 49,07,63,474
10/12/16 693.50 701.60 689.75 696.45 694.05 4,45,239 5,277 30,90,17,237
11/12/16 691.00 701.05 687.00 698.20 692.60 2,41,932 2,715 16,75,61,819
12/12/16 694.00 699.90 691.00 695.20 694.80 2,27,659 3,452 15,81,77,181
13/12/16 693.00 698.00 685.00 690.35 692.36 1,77,493 3,266 12,28,88,723
16/12/16 685.00 690.00 680.20 682.65 685.38 1,47,502 3,115 10,10,95,181
17/12/16 675.05 675.05 655.10 658.45 661.99 3,62,332 7,988 23,98,61,327
18/12/16 653.00 680.75 650.00 667.45 664.92 2,94,983 6,933 19,61,39,902
19/12/16 680.00 681.00 651.30 653.00 661.03 1,37,543 3,244 9,09,19,526
20/12/16 655.00 668.00 650.60 665.15 659.09 69,129 2,336 4,55,62,219
23/12/16 665.00 671.50 659.00 665.40 667.22 1,34,772 4,291 8,99,22,469
24/12/16 665.00 665.55 655.75 657.55 660.01 52,276 1,701 3,45,02,928
26/12/16 659.00 672.00 657.55 669.60 664.43 1,00,114 2,618 6,65,18,856
27/12/16 669.80 675.00 665.70 669.30 670.26 70,054 1,787 4,69,54,333
30/12/16 678.00 678.00 665.15 669.65 670.15 1,99,284 2,669 13,35,50,340
31/12/16 667.80 672.00 660.10 665.75 664.33 3,29,896 2,291 21,91,59,040
1/01/17 666.75 670.00 662.60 665.05 665.96 53,254 1,297 3,54,64,949
2/01/17 669.90 674.10 653.90 656.85 666.23 88,813 2,501 5,91,69,506
3/01/17 655.00 665.95 651.05 663.35 661.02 1,84,386 2,962 12,18,83,670
6/01/17 664.00 664.00 657.35 662.00 660.59 5,04,829 3,376 33,34,83,465
2/12/17 670.00 670.00 654.00 664.75 660.31 2,03,763 2,661 13,45,47,406
3/12/17 664.05 667.20 661.00 664.65 664.90 2,51,642 3,983 16,73,17,870
4/12/17 665.00 665.85 657.15 663.05 662.43 1,15,332 1,690 7,63,99,334
5/12/17 663.05 674.85 656.80 662.15 667.06 1,23,361 7,832 8,22,89,569
6/12/17 662.00 676.00 657.30 672.75 670.19 83,139 2,565 5,57,18,766
9/12/17 673.40 676.00 668.90 672.15 673.30 39,863 1,170 2,68,39,924
10/12/17 674.00 682.60 670.15 680.35 677.55 61,422 2,085 4,16,16,295
11/12/17 685.00 685.00 671.10 673.95 677.72 1,45,224 2,568 9,84,20,511
12/12/17 676.50 678.40 659.20 668.30 667.90 4,17,310 6,993 27,87,19,844
13/12/17 665.00 676.90 665.00 669.85 671.98 98,701 3,576 6,63,25,362

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INTERPRETATION:
On open value has risen from 661.00 to 665.00. Then compare to higher value of EPS
665.00 to 676.90. Then coming to lower price from 659.00 to 665.00. Wholly the
conclusion is 661.05 to 669.85 raised.
Then coming to the volume on the same dates or days volumes are
increased. Because totally this session HOUSING DEVELOPMENT
FINANCE CORP.LTD. EPS value is increased i.e. percentage of 6.71%.

FINDINGS

 On open value has risen from 320.00 to 328.00 than compare to higher value
of EPS 323.6 to 330.5. Then coming to lower price from 318.75 to 320.
Wholly the conclusion is 321.35 to 330.2 rise.
 On open value risen from 3354.00 to 3712.00 than compare to higher value of
EPS 3373.90 to 3760.00. Then coming to lower price from 3328.40 to
3704.00. Wholly the conclusion is 3338.45 to 3749.90 raised
 On open value has increased from 1068.20to 1035.00. Then compare to higher
value of EPS 1101.00 to 1047.50. Then coming to lower price from 1068.20 to
1028.00. Wholly the conclusion is 1088.90 to 1044.10 increased.

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 On open value has risen from 661.00 to 665.00. Then compare to higher value
of EPS 665.00 to 676.90. Then coming to lower price from 659.00 to 665.00.
Wholly the conclusion is 661.05 to 669.85 raised.

SUGGESTIONS

 There must be prohibition on disposal of promoters share holding,

and also restrictions and the expansion without prior approval of
the financial institutions for declaration of higher amount/ rate .The
availability of derivative products in eluding index futures, index
options, individual stock futures and individual stock options re-

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 enforces the overall attractiveness of this market to foreign and
domestic investors.
 Volume of paper work is small but it is very complicated to
maintain data in system so tries to reduce that by regular audit and
updating data.
 Most of the DPs do not have the necessary infrastructure to handle
the high work load of transactions leading to may error by DPs, so
by giving full infrastructure information to every DO can avoid
this problem.
 The pool account doesn’t know the true owner of the share and
hence dividends are paid to the broker instead of owners by this the
broker can do any manipulation or any fraud with the owner, for
this the owner can loose his dividend .once for this try to pay the
dividend directly to the owner .If the shares are fake/forged which
delivery by the broker the share holder can loose that shares an
have to receive another lot of issued shares from the broker in 21
days, this system stands abused. So minimize that waiting days are
deliver the issued share to the share holder as soon as possible.

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 CONCLUSION

 The comprehensive study of capital market instrument at Inter Connected

stock exchange has been an enlightening experience stressing on the
 positive aspects on Dematerialization.
 And settlement of shares, derivative market and capital instruments has done
in whole lot of good to the issuer, investor companies and country.
 The depository systems has reduced the lag in delivery and settlement of
securities but also supported the cause of providing more liquidity to the
security holder, the need for setting up of a depository paper less trading.
 Through online trading system and settlement became inevitable and
unavoidable for the smooth and the efficient functioning of the capital market.
 This system has proved its worthiness by increasing in the speed of
transactions within T+3 days which are earlier T+5 days.
 Now there is a proposal that the settlement will be done within T+1days in
near future which is in it an indication of a boon in the system of demat and
capital market instruments.
 It has been fairly long since derivative trading started off on the Indian
Indexes.
 Actively has failed to really take off with low figures being transacted in terms
of value and volumes.

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 BIBLIOGRAPHY

BOOKS:

 Investment management
-V.K.Bhalla
 Investment management
-Preethi Singh
 Security Analysis And Portfolio Management
-V.A.Avadhani
 Marketing of Financial Services
-V.A.Avadhani
 Indian Financial System
-M.Y.Khan

WEBSITES:

 www.indiabulls.com
 www.bseindia.com
 www.sebi.com
 www.moneycontrol.com
 www.economictimes.com
 www.nseindia.com

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