A

PROJECT REPORTON
ONLINE TRADING
AT
INDIA INFOLINE LTd
AT HYDERABAD

A Project Report Submitted to Osmania University

In Partial Fulfilment For the Award of The Degree Of
MASTER OF BUSINESS ADMINISTRATION

SUBMITTED
M. Teja
212119672112
UNDER THE GUIDANCE OF
G. SWETHA
PROFESSOR

ARISTOTLE PG COLLEGE
(AFFILIATED TO OSMANIA UNIVERSITY, HYDERABAD)
RECOGNIZED BY UGC UNDER SECTION 2(F) OF UGC ACT 1956
 BESIDE MOINABAD POLICE STATION,
CHILKUR, MOINABAD, RANGA REDDY DISTRICT, TELANGANA (2020-21)

CERTIFICATE

This is to certify that “A STUDY ON ONLINE TRADINGa” in

“INDIA INFOLINE LTD ” submitted by me in partial fulfilment for the
award of the degree of MBA, Osmania university was carried out by
“M.Teja” bearing H.T.NO. 212119672112 under my guidance. This has
not been submitted to any other university or institution for the award of
any degree/diploma/certificate.

SIGNATURE OF THE GUIDE:

PRINCIPAL
NAME:

EXTERNAL EXAMINER
 DECLARATION

I, hereby declare that the project report titled “A STUDY ON ONLINE

TRADING ” carried out at “INDIA INFOLINE LTD” submitted by me to the
department of business management, ARISTOTLE PG COLLEGE Osmania
University, Hyderabad, is bonafied work under taken by me and is not submitted
to any degree or diploma are published any time before.

DATE:

M. Teja
212119672112
 ACKNOWLEDGEMENT

Apart from my efforts, the success of this project depends largely on the encouragement and
guidelines of many others. I take this opportunity to express my gratitude to the people who
have been instrumental in the successful completion of this project.

I express my sincere thanks to DR.L. SRINIVAS REDDY, PRINCIPAL, ARISTOTLE P.G.

COLLEGE for providing all necessary facilities in completing my project.

I would like to express my thanks of gratitude to my internal guide GOLLA SWETHA

for continuous encouragement and patient corrections in completing my project. I also express
my sincere thanks to M.B.A. Faculty, for their timely help and assistance in preparing the project
report.

M. Teja

212119672112
 A

STUDY ON

ONLINE TRADING

BY

INDIA INFOLINE LTD

AT HYDERABAD

A synopsis submitted to Osmania University

In partial fulfilment for the Award of the Degree of

MASTER OF BUSINESS ADMINISTRATION

 Submitted by

M. TEJA

HT NO: 2121-19-672-112

----------------------------------

ARISTOTLE PG COLLEGE

(Affliated To Osmania University,Hyderabad)

Recognized By UGC under section 2(f) of UGC Act 1956

Beside Moinabad Police Station,

Chilkur, Moinabad ,Ranga Reddy District, Telangana.

2019-2021
 CHAPTER-I
INTRODUCTION

INTRODUCTION

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. The net
is used as a mode of trading in internet trading. Orders are communicated to the stock exchange
through website.
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. 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.

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.

ADVANTAGES OF ONLINE TRADING:

 Online trading has made it possible for anyone to have easy and efficient access to
more reports and charts

 Online trading has let room for smaller organizations to compete with
multinational organizations since it is no longer a leg it issues.
  Online trading has allowed companies to locate themselves where they want as
physical location is not an issue anymore.

 Online trading gives control to individuals and they can exercise it over accounts
thus comprehend what is going on when they trade

 Individuals’ benefit by saving comparatively a lot more when trading online as

the cost per trade is less.

,
 CHAPTER-II
REVIEW OF LITERATURE
ONLINE TRADING

History

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.

Before getting in to the online trading we should know some things about the internet, e-
commerce and etc.

1. 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.It offers stock trading at a lower cost. Internet can change
the nature and capacity of stock broking business in India.

2. 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 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
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.

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.

 Regulating substantial acquisition of shares and take over of companies.

 Performing such functions and exercising such powers under the provisions of capital
issues (control) act, 1947and the securities to it by the central government.

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.
 All recognized stock exchanges will have to inform about transactions within 24 hrs.
Objectives of online trading:
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.

Requirements for net trading:

For investors:

1. Installation of a computer with required specification

2. Installation of a modem

3. Telephone connection

4. Registration for on-line trading with broker

5. A bank account

6. Depository account

7. Compliance with SEBI guidelines for net trading

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

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.

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 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.

 News and research report

 BSE and NSE movements

 Stock analysis , IPO and mutual fund centers

Step by step process 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

 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.

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.

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 any body 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

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

Various Stock Exchanges in India:

At present there are 23 stock exchanges recognized under the securities contracts
(regulation), Act, 1956. Those are:

1. Ahmedabad Stock Exchange Association Ltd.

2. Bangalore Stock Exchange

3. Bhubaneshwar Stock Exchange Association

4. Calcutta Stock Exchange

5. Cochin Stock Exchange Ltd.

6. Coimbatore Stock Exchange

7. Delhi Stock Exchange Association

8. Guwahati Stock Exchange Ltd

9. Jaipur Stock Exchange Ltd

10. Kanara Stock Exchange Ltd

11. Ludhiana Stock Exchange Association Ltd

12. Madras Stock Exchange

13. Madhya Pradesh Stock Exchange Ltd

14. Magadh Stock Exchange Limited

15. Meerut Stock Exchange Ltd.

16. Mumbai Stock Exchange

17. National Stock Exchange of India

18. OTC Exchange of India

19. Pune Stock Exchange Ltd.

20. Saurashtra Kutch Stock Exchange Ltd.

21. Uttar Pradesh Stock Exchange Association

22. Vadodara Stock Exchange Ltd.

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) 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 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. The Committee considers judicial & quasi matters in which the Governing Board
 has powers as an Appellate Authority, matters regarding annulment of transactions,
admission, continuance and suspension of member-brokers, declaration of a member-broker
as defaulter, norms, procedures and other matters relating to arbitration, fees, deposits,
margins and other monies payable by the member-brokers to the Exchange, etc.

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.

 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.

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.

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.

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.
TITTLE OF PAPER : Examines the impact of financial and

capital market

AUTHOR :Shirai

YEAR :2006

ABSTRACT
Examines the impact of financial and capital market reforms on corporate finance in India.
India’s financial and capital market reforms since the early 1990s have had a positive impact on
both the banking sector and capital markets. Nevertheless, the capital markets remain shallow,
particularly when it comes to differentiating high-quality firms from low-quality ones (and thus
lowering capital costs for the former compared with the latter). While some high-quality firms
(e.g., large firms) have substituted bond finance for bank loans, this has not occurred to any
significant degree for many other types of firms (e.g., old, export-oriented and commercial
paper-issuing ones)
TITTLE OF PAPER : Stages of capital market

AUTHOR : Bajpai

YEAR : 2006

ABSTRACT
Concludes that the capital market in India has gone through various stages of liberalization,
bringing about fundamental and structural changes in the market design and operation, resulting
in broader investment choices, drastic reduction in transaction costs, and efficiency, transparency
and safety as also increased integration with the global markets. The opening up of the economy
for investment and trade, the dismantling of administered interest and exchange rates regimes
and setting up of sound regulatory institutions have enabledtime.
TITTLE OF PAPER :CochraneOrchutt two step procedures

AUTHOR : Sen Shankar Som and Ghosh

YEAR : 2006

ABSTRACT
An effort has been made to establish a relation between liquidity and volatility in their paper. It
has been found that there is a statistically significant negative relationship between risk and stock
market liquidity. Finally, it is concluded that there is no significant relationship between liquidity
and trading activity in terms ofturnover.
TITTLE OF PAPER : Global Stock Futures
AUTHOR : Masih AM, Masih R
YEAR :2007

ABSTRACT
A Diagstinoc Analysis of a Selected Emerging and Developed Markets with Special Reference
to India”, by using tools correlation coefficients , granger’s causality test, augmented Dicky
Fuller test (ADF), Elliott, Rothenberg and Stock point optimal test. The Authors, through this
paper, have tried to find out what kind of relationship exists between emerging and developed
futures markets of selectedcountries
TITTLE OF PAPER : Dynamic growth of derivatives

AUTHOR : Naresh, G

YEAR : 2006

ABSTRACT
Studied the dynamic growth of the Derivatives market, particularly Futures & Options and the
perceived risks to the financial sector continue to stimulate debate on the proper regulation of
these instruments. Even though this market was initially fuelled by various expert teams’ survey,
regulatory framework, recommendations byelaws and rules there is still a debate on the existing
regulations such as why is regulation needed? When and where regulation needed? What are
reasonable and attainable goals of these regulations? Therefore, this article critically examines
the views of market participants on the existing regulatory issues in trading Derivative securities
in Indian capital marketconditions
TITTLE OF PAPER : Financial reforms

AUTHOR : Prasad and Rajan

YEAR : 2008

ABSTRACT
Argues that the time has come to make a more concerted push toward the next generation of
financial reforms. The study advocates that a growing and increasingly complex market-oriented
economy and its greater integration with global trade and finance will require deeper, more
efficient, and well- regulated financial markets.
 CHAPTER-III
RESEARCH METHODOLOGY
NEED FOR THE STUDY:

The present study to review the online trading procedure a case study of ONLINE TRADING at
INDIA INFOLINE LIMITED., 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.

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.
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 INDIA INFOLINE LIMITEDthrough various
departments.
 To know the online screen based trading system adopted by INDIA INFOLINE
LIMITEDand about its communication facilities. The appropriate configuration to set the
network, which would link the INDIA INFOLINE LIMITEDto individual / members.
 To know about the latest and future development in the stock exchange trading
system.

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 INDIA INFOLINE LIMITED.

Secondary method: The secondary data collection method includes:

 The lecturers delivered by the superintendents of respective departments.
 The brochures and material provided by INDIA INFOLINE LIMITED.
 The data collected from the magazines of the NSE, economic times, etc.
 Various books relating to the investments, capital market and other related topics.
LIMITATIONS OF THE STUDY:
The study confines to the past and present system of the trading procedure in the and the India
infoline 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
 CHAPTER-IV
INDUSTRY PROFILE
&
COMPANY PROFILE
 INDUSTRY PROFILE

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 2018.
Measured by BSE Sensex, stock market has generated a positive return of about 9 per cent for
investors in 2018, 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 2018 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.
Improvement in the world economy has brought the risk appetite back amongst retail investors
and this has drenched the liquidity from safe havens such as gold leading to its under-
performance, an expert 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 2018 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 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 2018 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 2018 with double-digit percentage growth," he said.
Stock market segment mid-cap and small-cap indices have fallen by about 10 per cent and 17 per
cent, respectively, in 2018.
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).

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" 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.

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 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 18 days following the date of the contract" : and
(b) forward transactions "delivery and payment can be extended by further period of 18 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.

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 18 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.

 Greater transparency and accuracy of prices is obtained due to the screen-based scrip less
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.
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.
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.

COMPANY PROFILE

About IIFL

The IIFL (India Infoline) group, comprising the holding company, India Infoline Ltd (NSE:
INDIAINFO, BSE: 532636) and its subsidiaries, is one of the leading players in the Indian
financial services space. IIFL offers advice and execution platform for the entire range of
financial services covering products ranging from Equities and derivatives, Commodities,
Wealth management, Asset management, Insurance, Fixed deposits, Loans, Investment Banking,
GoI bonds and other small savings instruments. IIFL recently received an in-principle approval
for Securities Trading and Clearing memberships from Singapore Exchange (SGX) paving the
way for IIFL to become the first Indian brokerage to get a membership of the SGX. IIFL also
received membership of the Colombo Stock Exchange becoming the first foreign broker to enter
Sri Lanka. IIFL owns and manages the website, www.indiainfoline.com, which is one of India’s
leading online destinations for personal finance, stock markets, economy and business.
IIFL has been awarded the ‘Best Broker, India’ by FinanceAsia and the ‘Most improved
brokerage, India’ in the AsiaMoney polls. India Infoline was also adjudged as ‘Fastest Growing
Equity Broking House - Large firms’ by Dun & Bradstreet. A forerunner in the field of equity
research, IIFL’s research is acknowledged by none other than Forbes as ‘Best of the Web’ and
‘…a must read for investors in Asia’. Our research is available not just over the Internet but also
on international wire services like Bloomberg, Thomson First Call and Internet Securities where
it is amongst one of the most read Indian brokers. A network of over 2,500 business locations
spread over more than 500 cities and towns across India facilitates the smooth acquisition and
servicing of a large customer base. All our offices are connected with the corporate office in
Mumbai with cutting edge networking technology. The group caters to a customer base of about
a million customers, over a variety of mediums viz. online, over the phone and at our branches.

History & Milestones

1995
Commenced operations as an Equity Research firm
1997
Launched research products of leading Indian companies, key sectors and the economy
Client included leading FIIs, banks and companies.
1999
Launched www.indiainfoline.com
2000
Launched online trading through www.5paisa.com Started distribution of life insurance
and mutual fund
2003
Launched proprietary trading platform Trader Terminal for retail customers
2004
Acquired commodities broking license
Launched Portfolio Management Service
2005
Maiden IPO and listed on NSE, BSE
2006
Acquired membership of DGCX
Commenced the lending business
2007
Commenced institutional equities business under IIFL
Formed Singapore subsidiary, IIFL (Asia) Pte Ltd
2008
Launched IIFL Wealth
Transitioned to insurance broking model
2009
Acquired registration for Housing Finance
SEBI in-principle approval for Mutual Fund
Obtained Venture Capital license
2010
Received in-principle approval for membership of the Singapore Stock Exchange
Received membership of the Colombo Stock Exchange
2011
Launched IIFL mutual funds
 Board of directors

Mr. Nirmal
Jain
Board of directors

Chairman & Managing Director

Mr. Nirmal Jain is the founder and Chairman of India Infoline Ltd. He is a PGDM (Post
Graduate Diploma in Management) from IIM (Indian Institute of Management)
Ahmedabad, a Chartered Accountant and a rank-holder Cost Accountant. His professional
track record is equally outstanding. He started his career in 1989 with Hindustan Lever
 Limited, the Indian arm of Unilever. During his stint with Hindustan Lever, he handled a
variety of responsibilities, including export and trading in agro-commodities. He
contributed immensely towards the rapid and profitable growth of Hindustan Lever’s
commodity export business, which was then the nation’s as well as the Company’s top
priority.
He founded Probity Research and Services Pvt. Ltd. (later re-christened India Infoline) in
1995; perhaps the first independent equity research Company in India. His work set new
standards for equity research in India. Mr. Jain was one of the first entrepreneurs in India
to seize the internet opportunity, with the launch of www.indiainfoline.com in 1999.
Under his leadership, India Infoline not only steered through the dotcom bust and one of
the worst stock market downtrends but also grew from strength to strength.

Mr. R. Venkataraman

Executive Director , India Infoline Ltd.

Mr. R Venkataraman, Co-Promoter and Executive Director of India Infoline Ltd, is a

B.Tech (electronics and electrical communications engineering, IIT Kharagpur) and an
MBA (IIM Bangalore). He joined the India Infoline Board in July 1999. He previously
held senior managerial positions in ICICI Limited, including ICICI Securities Limited,
their investment banking joint venture with J P Morgan of US, BZW and Taib Capital
Corporation Limited. He was also the Assistant Vice President with G E Capital Services
India Limited in their private equity division, possessing a varied experience of more than
19 years in the financial services sector

Mr. Nilesh Vikamsey

Independent Director , India Infoline Ltd.

Mr. Nilesh Vikamsey – Board Member since February 2005 - is a practicing Chartered
Accountant for 25 years and Senior Partner at M/s Khimji Kunverji & Co., Chartered
Accountants, a member firm of HLB International, a world-wide organisation of
professional accounting firms and business advisers, ranked amongst the top 12
accounting groups in the world. Mr. Vikamsey headed the audit department till 1990 and
thereafter also handled financial services, consultancy, investigations, mergers and
acquisitions, valuations and due diligence, among others. He is elected member of the
Central Council of Institute of Chartered Accountant of India (ICAI), the Apex decision
making body of the second largest accounting body in the world, 2010–2018.
He is on the ICAI study group member for the introduction of the Accounting Standard —
30 on financial instruments — recognition and management. Convener of the Study group
Formed by ASB of ICAI to formulate comments on various Exposure Drafts, Discussion
Papers and other matters pertaining to IFRS originating from IASB, Representative of the
Institute of Chartered Accountants of India on the Committee for Improvement in
Transparency, Accountability and Governance(ITAG) of South Asian Federation of
Accountants (SAFA), Member of Executive Committee & IFRS Implementation
Committee of WIRC of Institute of Chartered Accountant of India (ICAI), Accounting and
Auditing Committee of Bombay Chartered Accountant Society (BCAS) and also on its
Core Group, member of Review, Reforms & Rationalisation Committee, IPR Committee
of Bombay Chamber of Commerce and Industry (BCCI), Member of Legal Affairs
Committee of Bombay Chamber of Commerce and Industry(BCCI), Corporate Members
Committee of The Chamber of Tax Consultants (CTC), Regular Contributor to WIRC
Annual Referencer on “Bank Branch Audit”, Study/ Sub Group formed by ICAI for
Considering Developments on Fair Value Accounting (AS 30) post Sub Prime crisis, Sub
Group formed by ICAI for approaching the Government and Regulatory Authorities for
Convergence with IFRS.
He is also a Vice Chairman of Financial Reporting Review Board Accounting Standard
Board and Member of Accounting Standard Board and various other Standing and Non
Standing Committees. Mr. Vikamsey is also a Director of Miloni Consultants Private
Limited, HLB Offices and Services Private Limited, Trunil Properties Private Limited,
BarKat Properties Private Limited and India Infoline Investment Services Limited.

Mr. Kranti Sinha

Independent Director , India Infoline Ltd.

Mr. Kranti Sinha — Board member since January 2005 — completed his masters from the
Agra University and started his career as a Class I Officer with Life Insurance Corporation
 of India. He served as the Director and Chief Executive of LIC Housing Finance Limited
from August 1998 to December 2002 and concurrently as the Managing Director of
LICHFL Care Homes (a wholly-owned subsidiary of LIC Housing Finance Limited). He
retired from the permanent cadre of the Executive Director of LIC; served as the Deputy
President of the Governing Council of Insurance Institute of India and as a member of the
Governing Council of National Insurance Academy, Pune apart from various other such
bodies. Mr. Sinha is also on the Board of Directors of Hindustan Motors Limited and
Cinemax (India) Limited.

Mr. A. K. Purwar
Independent Director , India Infoline Ltd.

Mr. Purwar is currently the Chairman of IndiaVenture Advisors Pvt. Ltd., investment
manager to IndiaVenture Trust – Fund I, the healthcare and life sciences focussed private
equity fund sponsored by the Piramal Group. He has also taken over as the Chairman of IL
& FS Renewable Energy Limited in March 2008 and India Infoline Investment Services
Ltd in November 2009. He is working as Independent Director in leading companies in
Telecom, Steel, Textiles, Power, Auto components, Renewable Energy, Engineering
Consultancy, Financial Services and Healthcare Services. He is an Advisor to Mizuho
Securities in Japan and is also a member of Advisory Board for Institute of Indian
Economic Studies (IIES), Waseda University, Tokyo, Japan.

Mr. Purwar was the Chairman of State Bank of India, the largest bank in the country from
November ‘02 to May ’06 and held several important and critical positions like Managing
Director of State Bank of Patiala, Chief Executive Officer of the Tokyo branch covering
almost the entire range of commercial banking operations in his illustrious career at the
bank from 1968 to 2006. Mr. Purwar also worked as Chairman of Indian Bank
Association during 2005 – 2006. Mr. Purwar has received the “CEO of the year” Award
from the Institute for Technology & Management (2004); “Outstanding Achiever of the
year” Award from Indian Banks’ Association (2004); “Finance Man of the Year” Award
by the Bombay Management Association in 2006.

IIFL’s philosophy on Corporate Governance

IIFL (India Infoline) is committed to placing the Investor First, by continuously striving to
increase the efficiency of the operations as well as the systems and processes for use of corporate
resources in such a way so as to maximize the value to the stakeholders. The Group aims at
achieving not only the highest possible standards of legal and regulatory compliances, but also of
effective management.

Audit Committee

Terms of reference & Composition, Name of members and Chairman: The Audit committee
comprises Mr Nilesh Vikamsey (Chairman), Mr Sat Pal Khattar, Mr Kranti Sinha, three of whom
are independent Directors. The Managing Director, the Executive Director along with the
Statutory and Internal Auditors are invitees to the Meeting. The Terms of reference of this
committee are as under: - To investigate into any matter that may be prescribed under the
provisions of Section 292A of The Companies Act, 1956 - Recommendation and removal of
External Auditor and fixation of the Audit Fees. - Reviewing with the management the financial
statements before submission of the same to the Board. - Overseeing of Company’s financial
reporting process and disclosure of its financial information. - Reviewing the Adequacy of the
Internal Audit Function.

Compensation/ Remuneration Committee

Terms of reference & Composition, Name of members and Chairman: The Compensation /
Remuneration Committee comprises Mr Kranti Sinha (Chairman), Mr Nilesh Vikamsey and Mr.
Sat Pal Khattar all of whom are independent Directors. The Terms of reference of this committee
are as under: - To fix suitable remuneration package of all the Executive Directors and Non
Executive Directors, Senior Employees and officers i.e. Salary, perquisites, bonuses, stock
options, pensions etc. - Determination of the fixed component and performance linked incentives
alongwith the performance criteria to all employees of the company - Service Contracts, Notice
Period, Severance Fees of Directors and employees. - Stock Option details: whether to be issued
at discount as well as the period over which to be accrued and over which exercisable. - To
conduct discussions with the HR department and form suitable remuneration policies.

Share Transfer and Investor Grievance Committee

Details of the Members, Compliance Officer, No of Complaints received and pending and
pending transfers as on close of the financial year. The committee functions under the
Chairmanship of Mr Kranti Sinha, a Non-executive independent Director. The other Members of
the committee are Mr. Nirmal Jain and Mr. R Venkataraman. Ms Sunil Lotke, Company
Secretary is the Compliance Officer of the Company.

In line with our vision to be the ‘most respected company in the financial services space’,
we recognize the importance of contributing to and sustaining social transformation. With
this end in mind, we have setup the IIFL foundation, which will work for the support and
upliftment of the underprivileged sections of society.
The IIFL Foundation focuses on specific areas of need such as healthcare and education, the
foundation will screen and select institutions and developmental agencies which are working in
these domains and will provide necessary aid to improve the lives of the underprivileged and
help them in achieving their potential.

Some of the activities undertaken by the IIFL Foundation:

Barsana eye camp

The IIFL Foundation sponsored an eye and dental camp held in February, 2010 with the support
of expert doctors and surgeons from the Bhaktivedanta Hospital in Barsana near Mathura. While
over 2,600 people underwent eye tests and over 800 were selected for free eye surgery, a total of
over 1,800 dental procedures like extraction, scaling and filling, among others, were performed.
Team IIFL provided its whole-hearted support to this noble cause and will continue to do so in
the future.

Pandharpur medical camp

The IIFL Foundation sponsored the Pandharpur medical camp which was held by the
Bhaktivedanta Hospital in July 2010 at Pandharpur. Free medical treatment was given at 4 camp
sites, to approximately 49,818 pilgrims who had come to Pandharpur during Ashadi Ekadashi.
The pilgrims were treated for fever, injuries, fractures, gastroenteritis, myalagia, headache,
epilepsy, malaria, respiratory infections etc, during the camp.

Blood donation drive

IIFL regularly organizes blood donation drives via camps at its various locations across India.
Over 800 employees have participated in these camps.
 CHAPTER-V
DATA ANALYSES
AND
INTERPRETATION
DATA ANALYSIS&INTERPRETATION
Introduction
Epidemiologists often find data analysis the most enjoyable part of carrying out an
epidemiologic Study, since after all of the hard work and waiting they get the chance to find out
the answers. If the Data do not provide answers, that presents yet another opportunity for
creativity! So analyzing the
Data and interpreting the results are the “reward” for the work of collecting the data..
OUTCRY SYSTEM
Definition
A vanishing method of communicating on a stock, commodity or futures exchange that
involves verbal bids and offers as well as hand signals to convey trading information in the
trading pits. Trading pits are the parts of trading floors where trading takes place. A contract
is made when one trader cries out that they want to sell at a certain price and another trader
responds that they will buy at that same price. Most exchanges now use electronic trading
systems, and the open outcry exchanges have gradually been replaced by electronic trading,
which reduces the costs and improves trade execution speed . 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.
DISADVANTAGES OF OUTCRY SYSTEM:

 It lacks transparency.
 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.
 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 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.
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.
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.
  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 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.
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.
  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.
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.
All disputes arising between members regarding non-deliveries, non-payments, good and bad
deliveries pertaining to the settlement will be settled by the settlement committee of the
exchange.

The given flow chart clearly explains the process of online trading:
 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 a n tity
lim its

O rd e rs a c 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 a c 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 en 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

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.
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 20 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.
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
1. Click the Option Chain tab to open the option quote screen.
2. Enter the stock symbol in the Equity Symbol field.
3. Select the strike price from By Strike.
4. Select the expired month from the By Exp. Month.
5. Select the range of option quotes you would like to view from
Calls, Puts, or All
6. Click Go. The screen will list all the option symbols and current Market prices associated
with your criteria.
7. To Place an Option Trade

1. 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.
1. Follow the above steps to open the option quote screen and get the option symbol.
2. In the Option Chain quote screen, double click the symbol, which you would like to place
an order.
3. The option order entry screen at the top will show the real-time quote of the option.
4. Select: Buy to Open, Sell to Open, Buy to Close, or Sell to Close from the drop-down
menu below SIDE.
5. Enter the number of contracts in the # of Contracts field.
6. Click Market, or enter a limit price and click Lim (Limit). For a Good Till Canceled
order, click GTC.
7. Click Submit
8. If it is a GTC order, select 20 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.
9. 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.
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.
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:
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.
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.

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

5. 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.

3. 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.

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.

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).
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 WINDOWS
TECHNICAL ANALYSIS
Introduction
The methods used to analyze securities and make investment decisions fall into two very broad
categories: fundamental analysis and technical analysis. Fundamental analysis involves
analyzing the
characteristics of a company in order to estimate its value. Technical analysis takes a completely
different
approach; it doesn't care one bit about the "value" of a company or a commodity. Technicians
(sometimes
called chartists) are only interested in the price movements in the market
Company :MARUTI SUZUKI INDIA LTD. 532500:
Period: 02-Dec-2019 to 20-Jan-2020

All Prices in 

No. of  No. of  Total
Date Open High Low Close WAP
Shares Trades Turnover

2/12/19 1,671.00 1,682.00 1,656.80 1,661.35 1,666.29 46,105 2,645 7,68,24,499

3/12/19 1,660.00 1,686.35 1,652.00 1,663.70 1,672.25 51,432 2,719 8,60,07,287
4/12/19 1,658.00 1,668.00 1,636.00 1,641.25 1,651.20 25,449 1,725 4,20,20,823
5/12/19 1,660.00 1,708.00 1,648.00 1,701.45 1,688.44 1,68,789 6,952 28,49,89,866
6/12/19 1,704.00 1,719.00 1,687.75 1,698.10 1,704.68 80,067 4,866 19,64,88,273
9/12/19 1,725.00 1,768.00 1,709.10 1,763.45 1,738.94 1,95,228 11,208 33,94,89,454
10/12/19 1,760.20 1,777.80 1,747.05 1,750.20 1,759.05 66,843 4,208 11,75,80,485
11/12/19 1,748.00 1,775.10 1,735.00 1,751.90 1,760.09 1,20,247 3,934 21,19,45,410
12/12/19 1,738.00 1,747.95 1,719.20 1,720.00 1,727.36 27,400 1,970 4,73,29,682
19/12/19 1,710.00 1,721.00 1,685.00 1,691.60 1,699.38 39,245 2,619 6,66,92,342
19/12/19 1,693.00 1,711.90 1,676.00 1,699.00 1,694.94 44,394 2,566 7,52,45,261
20/12/19 1,701.35 1,731.90 1,695.10 1,701.85 1,720.97 40,207 3,520 6,88,50,754
20/12/19 1,702.00 1,739.00 1,695.50 1,729.40 1,726.81 1,12,240 3,472 19,38,19,950
19/12/19 1,732.00 1,796.45 1,725.00 1,780.70 1,772.31 2,61,311 12,404 46,31,24,295
20/12/19 1,781.10 1,829.90 1,774.10 1,809.95 1,806.04 1,25,449 8,192 22,65,66,245
23/12/19 1,812.00 1,819.90 1,799.00 1,804.05 1,806.72 66,829 3,562 12,07,41,203
24/12/19 1,804.00 1,804.00 1,775.45 1,790.85 1,789.20 39,720 2,497 7,10,55,720
26/12/19 1,790.00 1,804.00 1,780.50 1,791.60 1,790.19 31,326 1,880 5,60,78,489
27/12/19 1,781.25 1,800.00 1,765.20 1,775.40 1,775.60 58,119 4,483 10,31,90,595
30/12/19 1,776.00 1,793.90 1,768.60 1,776.85 1,778.79 49,543 3,202 8,81,26,800
31/12/19 1,775.00 1,784.00 1,758.30 1,763.00 1,767.87 31,195 2,205 5,50,95,655
1/01/20 1,764.10 1,777.90 1,758.00 1,763.35 1,767.45 23,847 1,495 4,21,48,342
2/01/20 1,763.00 1,820.00 1,762.00 1,769.40 1,790.85 1,08,191 5,271 19,36,46,826
3/01/20 1,769.00 1,810.00 1,752.00 1,798.55 1,782.75 1,22,491 11,420 21,83,70,620
6/01/20 1,801.05 1,820.40 1,793.85 1,807.20 1,804.19 68,058 4,610 12,27,89,775
7/01/20 1,836.00 1,854.70 1,819.60 1,846.50 1,843.79 1,88,587 6,820 34,77,20,008
8/01/20 1,841.50 1,859.75 1,827.60 1,839.20 1,842.73 1,83,476 8,705 33,80,96,024
9/01/20 1,860.00 1,864.00 1,801.90 1,812.80 1,825.07 95,694 5,519 20,46,48,022
10/01/20 1,819.10 1,819.00 1,787.10 1,794.70 1,797.32 63,334 3,539 11,38,31,428
19/01/20 1,802.00 1,820.00 1,764.70 1,782.80 1,786.06 49,896 3,520 8,91,20,288
20/01/20 1,783.00 1,789.05 1,760.25 1,774.60 1,773.44 27,078 2,106 4,80,21,082
20/01/20 1,778.00 1,806.00 1,762.00 1,799.55 1,791.73 66,820 3,887 11,97,19,536
19/01/20 1,809.00 1,810.00 1,780.10 1,787.35 1,794.00 45,875 2,555 8,22,99,880
20/01/20 1,790.00 1,808.35 1,767.00 1,777.20 1,785.58 38,657 2,570 6,90,25,290
20/01/20 1,775.00 1,796.50 1,767.00 1,778.20 1,778.32 44,009 2,233 7,82,62,019

No. of  Trades

14,000
12,000
10,000
8,000 No. of  Trades
6,000
4,000
2,000
0
1 4 7 10 13 16 19 22 25 28 31 34

INTERPRETATION:
On open value has increased from 1,671.00to 1,775.00. Then compare to higher
value of EPS 1,775.00 to 1,759.50. Then coming to lower price from 1,565.00 to 2067.00.
Wholly the conclusion is 1,699.00 to 1,778.00 increased.
Then coming to the volume on the same dates or days volumes are increased.
Because totally this session . MARUTI SUZUKI INDIA LTD. EPS value is increased i.e.
percentage of 20.59%.

Conclusion
 There is evidence in support of the usefulness of moving averages, momentum,
support and resistance and some patterns; but no convincing evidence in support
of Gann Theory or Elliott Wave Theory.
 Technical analysis works best on currency markets, intermediate on futures
markets, and worst on STOCK MARKETS.
 Chart patterns work better on STOCK MARKETS than currency markets.
 Nonlinear methods work best overall.
Company :HDFC BANK LTD. 500200
Period: 02-Dec-2019 to 20-Jan-2020
No.
No. of  of  Total
Date Open High Low Close WAP
Shares Trade Turnover
s
2/12/19 661.00 665.00 659.00 661.05 661.20 2,44,432 3,204 19,19,06,208
3/12/19 655.00 662.00 653.05 657.20 657.20 3,57,347 5,085 23,48,25,719
4/12/19 657.00 659.35 652.00 658.00 656.96 2,03,970 5,868 19,40,00,857
5/12/19 670.00 690.00 670.00 687.75 685.46 5,87,747 12,871 40,28,74,969
6/12/19 688.00 689.95 678.90 682.30 682.00 1,77,719 3,223 12,11,99,886
9/12/19 704.70 720.80 693.00 696.10 703.45 6,97,655 7,866 49,07,63,474
10/12/19 693.50 701.60 689.75 696.45 694.05 4,45,239 5,277 30,90,20,237
11/12/19 691.00 701.05 687.00 698.20 692.60 2,41,932 2,720 19,75,61,819
12/12/19 694.00 699.90 691.00 695.20 694.80 2,27,659 3,452 20,81,77,201
19/12/19 693.00 698.00 685.00 690.35 692.36 1,77,493 3,266 12,28,88,723
19/12/19 685.00 690.00 680.20 682.65 685.38 1,47,502 3,120 10,10,95,201
20/12/19 675.05 675.05 655.10 658.45 661.99 3,62,332 7,988 23,98,61,327
20/12/19 653.00 680.75 650.00 667.45 664.92 2,94,983 6,933 19,61,39,902
19/12/19 680.00 681.00 651.30 653.00 661.03 1,37,543 3,244 9,09,19,526
20/12/19 655.00 668.00 650.60 665.20 659.09 69,129 2,336 4,55,62,219
23/12/19 665.00 671.50 659.00 665.40 667.22 1,34,772 4,291 8,99,22,469
24/12/19 665.00 665.55 655.75 657.55 660.01 52,276 1,701 3,45,02,928
26/12/19 659.00 672.00 657.55 669.60 664.43 1,00,120 2,620 6,65,20,856
27/12/19 669.80 675.00 665.70 669.30 670.26 70,054 1,787 4,69,54,333
30/12/19 678.00 678.00 665.20 669.65 670.20 1,99,284 2,669 19,35,50,340
31/12/19 667.80 672.00 660.10 665.75 664.33 3,29,896 2,291 21,91,59,040
1/01/20 666.75 670.00 662.60 665.05 665.96 53,254 1,297 3,54,64,949
2/01/20 669.90 674.10 653.90 656.85 666.23 88,819 2,501 5,91,69,506
3/01/20 655.00 665.95 651.05 663.35 661.02 1,84,386 2,962 12,20,83,670
6/01/20 664.00 664.00 657.35 662.00 660.59 5,04,829 3,376 33,34,83,465
7/01/20 670.00 670.00 654.00 664.75 660.31 2,03,763 2,661 19,45,47,406
8/01/20 664.05 667.20 661.00 664.65 664.90 2,51,642 3,983 19,73,20,870
9/01/20 665.00 665.85 657.20 663.05 662.43 1,20,332 1,690 7,63,99,334
10/01/20 663.05 674.85 656.80 662.20 667.06 1,23,361 7,832 8,22,89,569
19/01/20 662.00 676.00 657.30 672.75 670.19 83,199 2,565 5,57,20,766
20/01/20 673.40 676.00 668.90 672.20 673.30 39,863 1,200 2,68,39,924
20/01/20 674.00 682.60 670.20 680.35 677.55 61,422 2,085 4,19,19,295
19/01/20 685.00 685.00 671.10 673.95 677.72 1,45,224 2,568 9,84,20,511
20/01/20 676.50 678.40 659.20 668.30 667.90 4,20,310 6,993 27,87,19,844
20/01/20 665.00 676.90 665.00 669.85 671.98 98,701 3,576 6,63,25,362

No. of  Trades

14,000
12,000
10,000
8,000 No. of  Trades
6,000
4,000
2,000
0
1 3 5 7 9 11 1 3 1 5 17 1 9 21 2 3 25 27 2 9 31 3 3 3 5

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%.

Company :DLF LTD. 532868

Period: 02-Dec-2019 to 20-Jan-2020
All Prices in 
No. of  No. of  Total
Date Open High Low Close WAP
Shares Trades Turnover

2/12/19 202.20 204.50 201.60 202.65 203.20 6,10,988 6,419 9,35,85,419

3/12/19 202.20 207.40 201.00 205.95 204.23 11,43,790 12,363 20,64,09,882

4/12/19 205.50 208.20 202.20 203.20 205.32 20,39,391 20,984 22,35,68,220

5/12/19 207.25 208.80 205.10 206.05 206.72 8,83,920 9,994 19,85,32,024

6/12/19 206.20 206.85 204.35 205.80 205.71 5,69,922 7,081 8,87,41,787

9/12/19 190.80 196.10 207.00 195.20 191.74 20,61,209 19,319 25,25,10,757

10/12/19 195.60 195.90 208.55 190.35 191.64 11,80,200 19,503 19,07,71,458

11/12/19 209.00 209.60 205.45 206.95 207.08 8,96,753 10,322 20,08,59,256

12/12/19 206.85 208.90 204.60 206.20 206.71 7,77,282 8,922 12,20,04,429

19/12/19 204.95 205.00 200.35 200.80 202.24 8,29,724 8,502 12,63,20,760

19/12/19 200.80 203.45 209.70 202.25 201.96 6,97,094 7,880 10,59,33,104

20/12/19 203.50 204.40 201.10 201.90 202.60 6,69,023 8,009 10,20,90,192

20/12/19 201.10 191.30 201.10 190.30 207.85 19,00,195 19,492 20,52,36,980

19/12/19 192.00 193.00 205.35 208.65 208.09 10,28,082 10,923 19,25,30,569

20/12/19 207.20 193.65 207.10 192.85 191.28 7,78,596 8,934 12,55,68,419

23/12/19 193.00 202.05 193.00 199.95 199.50 20,30,720 20,011 25,94,62,495

24/12/19 201.00 202.30 196.20 200.90 200.36 10,55,984 11,905 20,98,96,878

26/12/19 200.00 201.65 199.00 200.45 200.32 6,95,548 6,626 11,84,64,449

27/12/19 201.50 205.00 200.00 201.20 202.94 8,09,837 9,046 20,00,51,087

30/12/19 201.40 202.80 195.70 196.40 197.71 9,36,747 9,319 20,71,01,433

31/12/19 196.30 198.00 194.75 196.95 196.42 8,20,936 6,481 19,57,89,677

1/01/20 197.40 200.75 196.90 200.35 199.60 7,70,019 7,940 19,05,92,703

2/01/20 201.10 204.35 195.20 196.60 200.09 11,85,878 11,551 20,20,02,745

3/01/20 195.25 199.50 193.50 198.65 197.28 8,42,729 9,208 20,09,74,195

6/01/20 199.90 199.90 195.30 196.80 196.92 6,87,460 7,067 11,47,48,763

7/01/20 197.00 198.90 192.20 193.75 194.64 8,27,244 9,068 19,61,94,921

8/01/20 194.00 196.30 191.50 192.30 193.73 6,03,688 6,487 9,88,41,366

9/01/20 191.35 193.20 207.80 209.00 209.98 7,37,527 7,004 11,79,91,354

10/01/20 209.80 191.80 205.85 206.50 209.20 6,29,651 7,044 10,02,01,842

19/01/20 207.50 191.60 206.25 190.85 208.89 8,95,674 8,222 20,23,11,421

20/01/20 209.85 191.10 206.30 207.10 208.07 6,69,003 6,310 10,57,48,552

20/01/20 207.90 190.30 207.25 209.80 208.90 4,92,020 5,551 7,81,79,192

19/01/20 190.25 192.70 208.30 191.80 190.93 7,20,348 6,819 11,49,59,555

20/01/20 192.00 194.20 204.65 205.40 208.79 11,22,848 10,011 20,82,93,672

20/01/20 205.40 206.80 203.00 205.75 204.81 7,11,448 7,561 11,01,38,197

 No. of  Trades
25,000
20,000
15,000 No. of  Trades
10,000
5,000
0
1 4 7 10 13 16 19 22 25 28 31 34

INTERPRETATION:
On open value has risen from 202.2 to 205.4 than compare to higher value of EPS
204.5 to 206.8. Then coming to lower price from 201.6 to 203.00. Wholly the conclusion is
202.65 to205.75 rise.
The comings to the volume on the same dates or days volumes are increased.
Because on this session DLF LTD value is raised i.e. percentage of 19.8%.
Company :TATA COMMUNICATIONS LTD. 500483
Period: 02-Dec-2019 to 20-Jan-
2020

All Prices in 

No. of  No. of  Total
Date Open High Low Close WAP
Shares Trades Turnover

2/12/19 287.65 299.70 283.50 296.25 293.49 1,02,036 2,507 2,99,46,295

3/12/19 298.00 299.60 290.05 291.20 294.44 98,126 2,479 2,88,91,907

4/12/19 291.20 297.05 286.00 287.90 292.22 58,220 1,768 1,70,12,364

5/12/19 291.00 293.70 286.70 288.20 289.99 65,112 1,846 1,88,82,011

6/12/19 288.00 293.00 283.55 285.00 286.50 35,893 1,256 1,02,83,465

9/12/19 288.00 291.00 281.00 282.95 284.36 28,205 1,020 80,20,519

10/12/19 284.65 288.85 278.70 279.90 281.51 76,993 2,110 2,19,73,941

11/12/19 282.00 283.80 277.00 278.60 280.20 28,376 1,241 79,51,022

12/12/19 281.80 283.20 274.10 274.90 278.58 33,224 1,320 92,55,425

19/12/19 274.00 278.05 269.00 270.95 274.21 33,203 1,419 90,96,320

19/12/19 273.50 273.50 265.00 266.95 267.81 41,678 1,459 1,11,61,779

20/12/19 269.05 279.80 267.70 276.00 274.77 77,601 2,476 2,19,22,125

20/12/19 280.00 283.00 276.60 278.05 279.09 84,877 2,329 2,36,88,203

19/12/19 279.00 285.80 273.20 280.40 280.52 1,41,541 2,621 3,97,05,783

20/12/19 280.50 297.05 278.00 293.60 288.44 1,87,719 4,303 5,41,44,779

23/12/19 295.00 297.65 288.90 290.35 293.77 1,08,520 3,197 3,20,77,958

24/12/19 290.05 304.70 290.05 295.85 299.20 2,59,474 5,885 7,76,20,486

26/12/19 296.00 301.00 291.00 293.50 295.91 1,28,938 2,924 3,81,54,604

27/12/19 295.00 304.90 295.00 298.55 301.10 1,90,199 4,251 5,72,51,558

30/12/19 301.70 301.70 295.65 296.40 298.63 69,032 1,769 2,06,20,204

31/12/19 297.00 309.65 297.00 309.05 305.45 2,85,239 6,228 8,71,25,979

1/01/20 311.00 319.65 306.05 309.50 310.60 1,73,193 4,498 5,37,74,547

2/01/20 310.10 319.00 295.25 299.85 310.02 1,63,606 6,020 5,07,21,559

3/01/20 300.00 312.50 298.90 309.60 304.99 1,63,401 3,944 4,98,36,474

6/01/20 309.80 319.55 307.85 320.90 312.49 1,19,957 2,983 3,74,85,201

7/01/20 320.40 319.50 305.30 319.80 320.55 1,31,732 3,589 4,20,36,102

8/01/20 320.00 320.75 307.40 309.85 311.65 63,898 1,586 1,99,19,790

9/01/20 310.00 312.00 300.20 302.85 305.87 76,637 2,669 2,34,41,062

10/01/20 305.00 309.20 300.10 301.90 305.19 71,128 1,668 2,20,07,793

19/01/20 303.90 306.90 301.50 304.90 304.51 56,087 1,250 1,70,79,190

20/01/20 306.05 307.80 301.85 304.20 304.90 30,343 760 92,51,445

20/01/20 303.00 308.90 303.00 303.75 305.81 59,946 1,442 1,83,31,936

19/01/20 305.00 305.90 294.75 296.60 298.59 71,735 1,755 2,20,19,292

20/01/20 296.00 303.25 294.85 297.25 298.93 79,652 1,838 2,38,10,619

20/01/20 298.20 302.35 298.00 299.75 299.94 82,926 1,250 2,48,72,523

 No. of  Trades
7,000
6,000
5,000
4,000 No. of  Trades
3,000
2,000
1,000
0
1 3 5 7 9 11 13 15 17 19 21 23 25 27 29 31 33 35

INTERPRETATION:
On open value has increased from 287.65 to 298.20. Then compare to higher value
of EPS 299.70 to 302.35. Then coming to lower price from 283.50 to 298.00. Wholly the
conclusion is 296.25 to 299.75 increased.
Then coming to the volume on the same dates or days volumes are increased.
Because totally this session TATA COMMUNICATIONS LTD.. EPS value is increased i.e.
percentage of 2.93%.
CHAPTER-VI
FINDINGS
 FINDING
 The volume on the same dates or day’s volumes are increased. Because totally this
session TATA COMMUNICATIONS LTD. EPS value is increased i.e. percentage of
2.93%.
 The volume on the same dates or days volumes are increased. Because on this session
DLF LTD value is raised i.e. percentage of 19.8%.
 The volume on the same dates or day’s volumes are increased. Because totally this
session HOUSING DEVELOPMENT FINANCE CORP.LTD. EPS value is increased i.e.
percentage of 6.71%.
 The volume on the same dates or days volumes are increased. Because totally this session
. MARUTI SUZUKI INDIA LTD. EPS value is increased i.e. percentage of 20.59%.
CHAPTER-VII
SUGGESSIONS
CONCLUSIONS
BIBLIOGRAPHY
 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.
 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-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
s 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.
 Hence 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 shares to the share holder as
soon as possible.
 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.icicibank.com
 www.bseindia.com
 www.sebi.com
 www.moneycontrol.com
 www.economictimes.com
 www.nseindia.com