Submitted in partial fulfilment of the requirements of the two year Post Graduate Programme (PGP).


INDIABULLS SECURITIES LTD. is a brokerage house which deals in purchase and sales of Financial securities on behalf of there clients. This project elaborates on “Analysis of investors avenues in commodity market”. The company was promoted by three engineers named “SAMEER GEHLAUT, RAJIV RATTAN, SAURABH MITTAL”, from IIT Delhi. The project was undertaken through regular visits to the branch. Communicating with

clients, solving their quarries, executing their transaction etc. were some of the main feature of the project. Basically the project revolves around to analyses that how to invest in the commodities so that a customer could get the sufficient return on his investment. Also this project reveals the norms and conditions of the broking house so that a client could easily trade in the market. The project depicts the various settlements and obligations while trading such as fund settlement, margin money, shortage of funds, payment modes, and delivery of goods and also in this project lot size if different commodities are listed. Apart from it all the walking clients were deeply observed while they came into the branch and assisted me in learning there work profile.




Bombay Stock Exchange and Luxembourg Stock Exchange. Indiabulls helps its clients to satisfy their customized financial goals. “Indiabulls Financial Services Ltd is listed on the National Stock Exchange. consumer secured & unsecured credit. research & advisory services. depositary services. Indiabulls through its group companies has entered Indian Real Estate business in 2005.000 customers with its wide range of financial services and products from securities. TRADING SYSTEM 20. 2009). With around 4000 Relationship Managers. REFERENCES COMPANY PROFILE Indiabulls is India’s leading Financial Services and Real Estate company having over 640 branches all over India. Indiabulls serves the financial needs of more than 4. SETTLEMENT 21. CONCLUSION 22. Indiabulls and its group companies have attracted more than USD 800 million of equity capital in Foreign Direct Investment (FDI) since March 2000.50. 2009).19. Some of the large shareholders of Indiabulls are the 4 . loan against shares and mortgage & housing finance. It is currently evaluating several large-scale projects worth several hundred million dollars. The market capitalization of Indiabulls is around USD 8.300 million (31st December. Consolidated net worth of the group is around USD 1005 million (31st December. derivatives trading.

Business of the company has grown in leaps and bounds since its inception. Indiabulls has demonstrated deep understanding and commitment to Indian Real Estate market by winning competitive bids for landmark properties in Mumbai and Delhi.” 5 . profits of the company grew at a CAGR of 184%. Morgan Stanley and Farallon Capital. Indiabulls became the first company to bring FDI in Indian Real Estate through a JV with Farallon Capital Management LLC. Merrill Lynch. a respected US based investment firm.largest financial institutions of the world such as Fidelity Funds. Revenue of the company grew at a CAGR of 159% from FY03 to FY07. Goldman Sachs. During the same period.

So. But. Investing isn't gambling or speculation. To start with.INVESTMENT PLANNING Investment planning is an alien concept for the Indian populace. or rentals) and appreciation over the long term. one should take investment decisions with as many facts as he can assimilate. Most of us spend more than half of our lives working and saving because money is important. interest. life could have been so much easier. the truth is that if only they would have been introduced to the Art of Managing Money. However. Zero on your monthly and annual expenses Knowledge is power. Is son’s education or daughters' marriage worrying? The key is to figure out goals. understand that no one can ever know everything. Learning to live with the anxiety of the unknown is part of investing. most of us spend almost no time planning to make that hard-earned money work more effectively for us. Why should one invest? Simply put. The rate of return on investments should be greater than the rate of inflation. But. Where is your money going? The most important thing is that one should where your money is going. For a country which till now was worried about making ends meet this emerging trend is definitely a new experience. it's about taking reasonable risks to reap steady rewards. leaving him with a nice surplus over a period of time. It is common knowledge that money has to be invested wisely. in fact crucial. Is he willing to retire with a sound lump sum amount or does one want a steady monthly income. one should invest so that his money grows and shields him against rising inflation. Investing is a method of purchasing assets in order to gain profit in the form of reasonably predictable income (dividends. It takes years to understand the art of investing. 6 . how do one plan for his financial life? Financial planning is nothing but an assessment of one’s goals and the steps one must take to help make them a reality.

the faster the money will grow. the end result is to create wealth for retirement. Also. Trust in the power of compounding is growth via reinvestment of returns earned on savings. 7 . Invest early 2. it's exciting to review investment returns and to see how they are accumulating at a faster rate than salary or any other source of regular income. The earlier one starts investing and continues to do so consistently the more money will be made. 1. then he is not ready for investing. Considering the unpredictability of the markets. bonds. To invest. The longer the money remains invested and the higher the interest rates. When to Invest? The sooner the better. better standard of living or to just pass on the money to the next generation. whereby the concept of compounding interest swells income by accumulating earnings and dividends. The power of compounding is one of the most compelling reasons for investing as soon as possible. marriage. vacations. college fees. By investing into the market right away allows investments more time to grow. one needs capital free of any obligation. mutual funds or certificates of deposit (CD) or any other assets. There is always a first time for everything so also for investing. If he is not in the habit of saving sufficient amount every month. Invest for long term and not short term.Whether money is invested in stocks. Invest regularly 3. research and history indicates these three golden rules for all investors. Compounding has a snowballing effect because one earns income not only on the original investment but also on the reinvestment of returns accumulated over the years.

Fixed Income Instruments 8 . The amount that should be invest will eventually depend on factors such as: • • • Investor’s risk profile Time horizon of investment Savings made The investing options are many.How much money is needed to invest? There is no statutory amount that an investor needs to invest in order to generate adequate returns from his savings. to name a few : • • • • • • Bonds Mutual funds Fixed deposits Stocks Metals Others Where Can I Invest? The possible avenues for investment can be divided into following categories: 1.

Bonds. inflation. investors particularly in developing countries will prefer to keep their assets in foreign currency. Apart for it requires far more in-depth knowledge about world market. This was evident when all major South East Asian currencies collapsed last year. Options available are secondary market (buying and selling shares in the stock exchanges) or the primary market (IPOs). Equities However these investments do not for part of my study but because of its close relation with stock market I have got fair enough insight in to these instrument as well. interest rates to make investment in these instruments. Hard currencies like the US dollar or Pound or Euro are relatively stable. 3. During the project I have learned that it is better for retail or individual investor to remain away from investing in these instruments. 2. It has been observed that such instrument generate a return in range of 4% .9% and given the current level of inflation of about 11. But I personally do not consider them high risk investment yes one need to be knowledgeable enough to make money through this investment 9 . Foreign Currency Investments Wherever allowed by government regulations. People at individual level or so called retail level do not make investment in these instruments as the threshold limit itself is very high for investing in these instruments. In analysis of project I found that generally investment trends have started moving against these investments because of returns they generate. Preference shares etc. These investments are relatively safer but limited upside on returns. The risk of currency depreciation in case of economic / political turmoil is high.This product class includes options such as Fixed Deposits. Debentures.91% Actually people end up having a negative return on their investment. Generally classified as a high risk high return asset.

Equity funds invest in shares while debt funds invest in debentures. and other debt instruments. entails high risk but with high rewards too. who generally are skilled. Commodities Investing in commodities on a large scale is done typically by a trader or speculators. 6. Other collector items can be stamps. One has to carefully select a mutual fund based on their track record and also the right kind of scheme for the investors risk profile and other objectives. In general. etc. I have kept them out of my study. Investment in paintings is illiquid and has a long gestation period. Etc Art has proved to be an important investment avenue.4. However. such as stocking sugar or wheat requirement for the full year. In effect. Wrong decisions might just leave a piece of paper hanging on your wall (not to mention the hole in your pocket). particularly for the rich and wealthy. it is difficult for the common man to explore investment opportunities in this segment. one has to be an expert in evaluating the value of art. 10 . A proxy for this is the way retail households stock up commodities in anticipation of price increase. Mutual Funds Mutual funds are surrogate direct investment in debt or equity. Art/ Antiques. A balanced fund tries to maintain an optimum balance of debt and equity. My project revolves around investment in commodities and how profit is earned through investment in it. Mutual funds can be classified on the basis of their investment strategy and avenues. antiques. 5. ie. any mutual fund is an effective retail (can be institutional also) fund accumulator. signatures. letters. have under performed the market averages. cards. While the mutual fund manger is supposed to have higher expertise in managing portfolios and should therefore yield higher return but in practice most mutual funds have under performed the indices. Normally in commodities high risk investors would invest for high returns in a short period.

Real estate is very illiquid investment option. Real Estate This offers a limited option to investors as in India most people buy a house to live in. Only the very rich buy property as an investment. creating a fancy for real estate. property prices rose sharply. • To analyze the various pros and cons in the capital market. • To get an insight to the working / operations of an online brokerage firm • To understand the online stock operations. OBJECTIVE The objectives of the study as regards the final project are as follows: • To know the attitude & preference of the general investors in the Indian capital market. which coincided with the economic slowdown.7. • Last but not the least to take the overall view of Indian capital market. • How far Indian capital market stands in the world financial system. In the last 3 years. In the early 90s. 11 . the real estate market has taken a real beating.

that one has to take into consideration. I must say that being an MBA student. It says that if one tries to control everything. aspiring to take specialization in the field of Marketing. There is no doubt about the fact that theoretical knowledge acquired by a student during the pursuance of his/ her MBA lays down a foundation with the help of which the student. one should not take it for granted that the so-called theoretical concepts can be applied to the business environment in totality. There’s a popular management theory. The other part of the story is that if one has applied a theoretical concept. in consideration. actually. It has been a purely practical exposure to the corporate sector. may spell a disaster for the organization as a whole. is a difference between the theoretical and practical environment of the corporate world. I was quite familiar with the business environment theory after completing 1 year of my studies. That is to say that there. Part A of the story is.LITERATURE REVIEW The work is a pure applied part of my 2 months curriculum. the same can prove to be very fruitful for the organization. the feasibility of a specific theoretical concept before one is to apply the same in the typical or complex business situation. It is the theory of “Management by exception”. But. which is very much prominent in the corporate world in the context of the prevailing competitive business environment. can expect to have the widest exposure of the reality show of the corporate sector. Decisions taken out of thin air. in an ad-hoc manner. one may 12 . in the light of its feasibility and after effective consideration of the Cost and Benefit Analysis.

I would say that there is a slight difference between theoretical and practical realities. modern finance managers do not. one must understand that. in order to rule the corporate world it is worthwhile to have the theoretical knowledge because. Thus.end up controlling nothing ne of the important role of a modern finance manager is. to conclude. nor you would be in a position to reduce the cost. But. try to control each and every cost unit. neither you would not be able to control the same. Thus. That is. They follow the principle of “Management by exceptions” whereby they try to control and reduce the cost of only those cost units where massive amount is spent. it is the theoretical knowledge that lays down the foundation for the success of a modern business manager. as a matter of fact. to control and thereby reduce the cost incurred by an organization. This is due to the fact that they are having a common belief and perception. 13 . if you try to reduce the cost associated to each and every cost unit.

RESEARCH AND METHODOLOGY INVESTMENT AVENUES IN THE COMMODITY MARKETAND THEIR PRODUCTS ANALYSIS RESEARCH METHODOLOGY: Market surveys have been conducted to know the scenario of market regarding measures to increase retail investor’s confidence in Indian commodity market. which are as follows: - COLLECTION OF BACKGROUND INFORMATION OBJECTIVES DEVELOPING AND VALIDATING RESEARCH COLLECTING THE INFORMATION ANALYSING THE INFORMATION PRESENTING THE FINDINGS 14 . Project study is done with a systematic approach. So while doing a research I have followed certain steps.

by sharing there knowledge and learning. etc. Various decisions were taken related to  Data sources  Research approaches  Research instruments • DATA SOURCES: There are two types of sources for the collection of data  Primary data  Secondary data Primary data Primary data have been collected through employees of CP Branch of INDIABULLS SECURITIES LTD. • RESEARCH APPROACHES 15 . journals and newspapers. Secondary data Secondary data has been collected through Internet.(where my training has been conducted). books.DESIGNING A RESEARCH PLAN For the purpose of getting proper information and then further analysis the research plan was efficiently and effectively designed.

VISION 16 . • RESEARCH INSTRUMENTS Verbal Interaction Practically looking at there work RESULTS AND ANALYSIS COMPANY PROFILE VISION AND MISSION OF INDIABULLS.Conducting a research a variety of approaches are used :- Observation This involves watching how people react to commodity market’s fluctuation and how satisfied are they with the returns on the various investments they have made.

P. 17 . Transatlantic Corporation Ltd.P.• To be the largest financial services organization in Indian retail market and become a one stop shop for all non-banking financial products and services for the retail customer. private equity and institutional investors such as LNM India Internet Ventures Ltd. and Infinity Technology Trustee Pvt. The Company was promoted by three engineers from IIT Delhi. Farallon Capital Partners. HDFC Bank. R R Capital Partners L. Ltd. Union Bank. ABN Ambro Bank. Standard Chartered Bank. and has developed significant relationships with large commercial banks such as Citibank. and has attracted more than Rs..700 million as investments from venture capital. ICICI Bank. L.. MISSION • leader • Provide our clients with a very broad array of product offering Rapidly increase the number of our client relationships to clear market INDIABULLS INTRODUCTION It took Uday Kotak 25 years to do what Indiabulls has achieved in 4 years…here’s the business history of an empire business built from scratch and moving on to become a force to reckon with. Lord Krishna Bank and IL&FS.

Stock Trading. The company headquarters are colocated in Mumbai and Delhi. the company has become the distributor of various financial products and operates from 82 offices in 55 cities to serve a client base of around 1. allowing the Company to scale these processes efficiently for the nationwide network. rest of Maharashtra and Gujarat. The Marketing and Sales efforts are headquartered out of Mumbai. Uttar Pradesh and Punjab. and access the highly skilled and educated workforce in these cities.80. and the Northern region. IFSL also sees vast potential in the distribution of consumer durable and home loans. The base of online clients has expanded from just 21680 in March 2004 to 100000 clients as of March 2005. the Western region including Mumbai. 18 . COMPANY BACKGROUND Indiabulls Financial Services Limited was established in the year 2000. are headquartered out of Delhi. Today. including the National Capital Territory of Delhi. which it has introduced recently. Margin Trading facilities backed by real time risk management systems and fast trade execution. Depositary & Insurance services. This provides an excellent base for cross-selling third party products like mutual funds and insurance. and its back office. The company started its operation with a team of 15 in a single office.000. parts of Haryana. nearby cities.The Company and its subsidiaries have facilities from the above-mentioned banks and financial institutions aggregating to Rs. risk management. internal finances etc. allowing it to access the two most important regions for Indian financial markets. 1765 million. WHY INDIABULLS? MAKING YOUR INVESTMENT EASY! Indiabulls to you as a Technology Oriented Financial Services Company offering Integrated Equity analysis. with a regional headquarter in Delhi.

Indiabulls also provides its clients with valuable real-time information. SOME OF THE UNIQUE FEATURES ARE: • Trading via branch network. SUBSIDIARIES 1. data and analysis via Indiabulls. Ltd. Indiabulls Equities Pvt. telephones and Internet account. Indiabulls Insurance Advisors Pvt. • • • Up-to-date news. 4. • • • • • Customized products for lending against shares Automated Extended Margin Trading Facility Integrated Trading and Depositary Account Technology transforming desktop into ODIN like terminal for Internet trading Commodity Research Department. That is Both online and offline (by telephone).com Contract notes on daily bases through post Customized Insurance services. Ltd. 2. 150 crores of assets in its own depository services. Indiabulls commodities Pvt. Indiabulls Securities Ltd. access to breaking news and market happenings. Ltd 3. Ranked amongst the top 5 retail brokers in the country with average daily trading volumes of over Rs. The organization has an established presence in 62 cities through its 70 branch offices and has a base of over 35000 clients. along with in-depth and insightful analysis. which studies the market and provides information.(my project topic) 19 . 600 crores in the current markets and holds over Rs.

Ltd. on February 9. INDIABULLS COMMODITIES PVT. 20 . Indiabulls Insurance Advisors Pvt. is a corporate agent for life insurance with Birla Sunlife Insurance Company Ltd. 2004 so as to capitalize on the brand image of the term “Indiabulls” in the company name. Indiabulls Securities limited was incorporated as GPF Securities Private Limited on June 9. Ltd. The NSE for derivatives trading on commodities in India has promoted NCDEX. Indiabulls Commodities Pvt. 2003 and is a member of National Commodities Derivatives Exchange (NCDEX). 2004. The Company commenced its activities from March 30. The name of the company was changed to Orbis Securities Private Limited on December 15. Ltd. 1995. Being a member of NCDEX. Ltd. 2004. 2002 and the name of the company was changed to Indiabulls Insurance Advisors Pvt. ISL is a corporate member of capital market &derivative segment of The National Stock Exchange of India Ltd.359-client relationship and 70 branches spread across the country as of April 30. 1995 to change the profile of the company and subsequently due to the conversion of the company into a public limited company. the name was further changed to Orbis Securities Limited on January 5’ 2004. LTD. was incorporated on October 30. ICPL will function as an intermediary for commodity’s derivatives.INDIABULLS SECURITIES LTD. At present. was incorporated as Orbis Technologies Private Limited on February 18. LTD Indiabulls Insurance Advisors Pvt. The name of the company was again changed to Indiabulls Securities Limited on February 16. 2004 due to change in the main objects of the company. ISL accounts for approximately 3% of the total daily turnover of the Exchange with 32. INDIABULLS INSURANCE ADVISORS PVT.

(in equities) Online trading 21 . Equities & Derivatives Indiabulls Equity Analysis 3. Indiabulls Equity Analysis provides the user with a basic company background that includes: • • • • Services and products offered Client profile Core competency Achievements and its relative position (market share) in the industry. Personal Loans INDIABULLS OFFERS • • • • Broker assisted trade execution. LTD. Indiabulls commodities Analysis 4. 2.INDIABULLS EQUITIES PVT. Depository Services 5. Insurance 6. SOME IMPORTANT PRODUCTS AND SERVICES OFFERED BY INDIABULLS ARE 1. Automated online investing Access to all IPO's.

which includes Equity. spread over more than 250 Indiabulls 22 . Mumbai (BSE) and NCDEX. offers commodity brokerage services to its customers. These two Commodity Exchanges have shown a phenomenal growth in trading volumes. (MCX) and National Commodity and Derivatives Exchange Ltd (NCDEX). Our retail branch network is one of the largest retail branch networks in the private financial services sector and provides our customers with an unmatched distribution and service capability. a 100% subsidiary of Indiabulls Securities Limited. which helps the investor in building and maintaining the ideal portfolio. Our commodities research team has a rich research experience in the commodities markets. Our flagship Indiabulls network. Indiabulls Commodities Private Limited (ICPL). Derivatives and Commodities Instruments listed on National Stock Exchange of India Ltd (NSEIL). ICPL is a registered Trading-cum-Clearing member of Multi Commodity Exchange of India Ltd. weekly & medium term market outlook and arbitrage strategies.Indiabulls offers the purchase and sale of securities. The Stock Exchange. ICPL is the right partner for you if you are keen on tapping opportunities being presented by this nascent commodities futures market. Significant Trading and Arbitrage opportunities exist for informed players in the futures market. reports on Agri-commodities & Metals. INDIABULLS COMMODITIES ANALYSIS Indiabulls Commodities Analysis. The specialized services provided by our research team include daily intraday reports. We offer a clearly differentiated product to our clients with a strong focus on research.

"We will bring down our stake in the exchange as per the FMC guidelines. Recently. NCDEX and NMCE. Indiabulls-MMTC combine is the latest to join the arena which already has 22 exchanges including three online national exchanges--MCX. the government gave formal approval to the Indiabulls-MMTC commodity exchange. India's largest trading enterprise. intelligent analytics and electronic trading capabilities. detailed data and news.offices in 80 cities. We are talking to various players on this. Currently Indiabulls has 74 percent equity stake in the new exchange venture whereas MMTC holds the remaining 26 percent. right at you fingertips. the fourth national commodity bourse. the Bombay Stock Exchange had taken a 26 percent sttek in the Ahmedabad-based NMCE WHAT IS INDIABULLS COMMODITY ANALYSIS? • An Commodity Rating approach is objective and not so difficult to understand 23 . offers real-time prices. Commodity Online NEW DELHI: Leading financial services company Indiabulls Financial Services will bring down its equity stake in the new commodity exchange that the company is launching in collaboration with public sector MMTC. ICPL offers dedicated Relationship Manager to cater to all your trading related requirements. To provide the highest possible quality of service." a senior Indiabulls official said. But rules from the apex commodities trading regulator Forward Markets Commission stipulate that a single entity can not hold more than 40 percent equity stake in a commodity exchange. we provide full access to all our products and services through multiple channels. Indiabulls is said to be talking to a number of Indian and foreign financial groups in an attempt to divest its 34 percent stake in the exchange venture. Early this week.

volume trade. 2. OVERVIEW: Contains precise information about the commodities. Contact details 1. current price. lowest trade price. etc. Highest trade price. COMPANY BACKGROUND /DETAILS: Indiabulls commodity Analysis provides the user with a basic company background that includes: • • • • Services and products offered Client profile Core competency Achievements and its relative position (market share) in the industry.• Indiabulls Commodity Analysis provides clients with an objective rating system for number of commodities. Following are the parameters: 1. commodity price. Snapshot This feature of Commodities Analysis provides its clients in short and precise the company’s background. • An unbiased approach to help in deciding which commodity to buy and/or sell. contract details. 24 . Overview 2. Company background 3. Commodities report 4.

excise. Depreciation. 1 yr estimated financials with the % changes are formulated. QUARTERLY INCOME SHEET Historical data for the past 4 quarters such as recurring income. Adjusted PBDIT. Financial express. net depreciation. Gross profit. Fundamentals • • • • Annual income sheet Quarterly income sheet 4 years balance sheet Charts ANNUAL INCOME SHEET Historical data which includes parameters like operating expenses. 4 YEARS BALANCE SHEET: Fund flow statements covering the past 4 years. 4. total interest. total taxation. Charts: 25 . Also. raw material consumed. COMMODITIES REPORT Contain online reports for customers. CONTRACT DETAILS Gives contracts details to traders through “Contract note”. Adjusted PAT.3. tax charges. net profit and loss for the past 2 yrs and their percentage change.

Stock performance data compared with the index. laws. DETAILED ANALYSIS • • • Key highlights Industry scenario Operational performance KEY HIGHLIGHTS: This showcases the company’s performance dealing with: Recent announcements in the industry Achievements of the company Mergers & acquisitions Venture agreements     INDUSTRY SCENARIO This deals with the current industry scenario and the company’s relative position. economic reforms and provisions undertaken and growth rate. outlook. COMPANY SPECIFIC INFORMATION 26 . current performance and future targets. market share.

Personal Loans Offers the shortest route to a loan with minimum paperwork and procedures.000. Features of Easy money are • • • • • Flexible loan tenor of up to 4 years (i. 00. 4. REGISTRATION PROCESS 1. Relationship Managers are told of the lead. Password reaches the client by courier.Covers operational and financial performance. you can avail of easy loans for a minimum of Rs. Explanation of the product by the Relationship Managers and Collection of Cheques and Undertakings.10. 1 month to 48 months). 3.10. 5. while taking care of business. The Clock starts 7 days after the Password is dispatched to the client. Med claim Insurance bundled with every loan you avail.e. All the Cheques and Undertakings are sent to Delhi. 6. Easy monthly repayment through equated monthly installments (EMI). future plans and cautions.100. Easy documentation and quick disbursal. 000 to a maximum amount of Rs.000 up to a maximum of Rs. Call Help Desk/Relationship Managers/Register Online. Loans available from a minimum of Rs.000. Which means you can take care of life. With Easymoney. expansions. INSURANCE Indiabulls gives you the opportunity to avail Birla Sunlife Life Insurance and TATA AIG Life Insurance through the Indiabulls network of 750 Relationship Managers over 135 locations nationwide. You take today and you can pay it tomorrow with no penalties 27 .1. 2.

POST REGISTRATION SERVICES: • • • • Deliver and receive cheques and securities Obtain market information Place orders Delivery of goods Features • Indiabulls is India's leading retail financial services company with 41 locations spread across 37 cities.DOCUMENTS REQUIRED FOR TRADING ACCOUNT • • 2-passport size photograph.If you do not have a PAN. Photocopy of Income Tax Permanent Account Number (PAN) Card .PHOTOCOPY OF ANY OF THE FOLLOWING: • • • • • • Passport PAN Card Voter ID Driving License Ration Card Address Proof . • Photograph IDENTITY PROOF . then you would be required to give a declaration to that effect and fill form 60. 28 .Photocopy of any one of Driving License / Passport/Ration Card/Voter Card/ Bank Statement.

Margin trading of 2 times the approved category based shares deposited for deliverybased trade. Margin trading of 4 times the approved category based shares deposited for deliverybased trade. Features of Power Indiabulls (It is a unique offering by the company which helps an investor to trade online). Provides our clients with real-time service & 24/7 accesses to all information and products.24/7. Only one time account opening charges and no annual maintenance charges. Indiabulls offers a full range of financial services and products ranging from Equities to Insurance to enhance your wealth and hence. Is complemented by our knowledgeable and customer focused Relationship Managers. achieve your financial goals. 29 . Margin trading of 8 times the cash deposited for intra-day based trade. Most competitive brokerage and DP charges. Margin trading of 4 times the cash deposited for delivery based trade.• • • • Over 450 Client Relationship Managers are dedicated to serving your unique needs. The features include: • • • • • • Live Streaming Quotes Fast Order Entry Tic by Tic Live Charts Technical Analysis Live News and Alerts Extensive Reports for Real-time Accounting BENEFITS OF TRADING WITH INDIABULLS • • • • • • • Personal relationship Manager .

providing fast and consistent client service. reducing processing costs. which drives the organization. The highlights of the company’s technology include: • • In-house technology team consisting largely of engineering graduates with detailed understanding of the trading and internal systems Low response time and high flexibility to introduce new features/ products at minimal costs 30 . enhancing their delivery systems. TECHNOLOGY IFSL’s ongoing investment in technology is a key element in expanding their product and service offerings. is its profitability-oriented culture. and facilitating their ability to handle significant increases in client activity without a corresponding rise in risk and staffing levels. The major core philosophy of the company has been to provide the best service to the customer. CORE VALUES – WHAT DRIVES THE ORGANIZATION Indiabulls has a performance driven culture where the core value.• Buy today Sell tomorrow for all securities facility. Every employee is an entrepreneur and is motivated in his own right. trying to make profits for himself. Deployment of cutting edge technology and innovation in product development has had a key role to play in the success of the organization.

This application has following features: • • • • • • • • • • Supports for future (commodity) Market Common Integrated Risk Management for market segments A feature rich browser based terminal Desktop based installable terminal for the highly active trader Electronic Payment Interface to participating Retail Bank India bulls Equity Research & Analysis Support for Non-Resident Indian Customers Multiple Tick-by-Tick Charts and Technical Analysis Streaming Quotes Multiple and fully customizable market watches and multiple order books. IFSL has computer network connecting all of the offices and centralized service center to support its multi-channel delivery systems. This includes logging of all critical files intra day.871 clients spread all across the country. It also includes the maintenance and periodic testing of a disaster recovery plan.• • Risk Management System is built around real time technology requiring minimal human intervention National Stock Exchange approved CTCL product developed by their technology team enabling them to provide the product to large user base. IFSL maintain backup and recovery functions to enhance the reliability of the system and Integrity of data. INTERNET BASED COMMODITY TRADING SYSTEM ISL’s Internet Based Commodity trading system handles over 22. At the core of the Internet based share trading system is an in-house developed application that interfaces with the MCX and NCDEX and allows users to carry out commodity transactions online. as well as other applications such as risk management. 31 . duplication and storage of all critical data every twenty-four hours and maintenance of facilities for backup and communications.

This multi-threaded component is responsible for all communication with the Power Indiabulls Group terminals given out to active trading clients.The application is an N-tier application with robust design and architecture made for scalability. which validates all orders placed by customers against the limits available to them as per our risk management logic. 4. This component has the following advanced features: 32 . Internet Trading Front-end . Power India bulls Group Server – This is a server side component of the Power Indiabulls Group Dealer Terminals. CTCL Interface – The CTCL interface is the component interface to the Power Indiabulls Group Server.The Internet Trading front end has been developed on the Java platform with the presentation layer in Java Server Pages and the logic residing in Java classes. 6. Currently it is being run on the Iplanet Web Server from Netscape. The Internet trading front end uses a proprietary methodology of database connection pooling to achieve better performance. This module accepts and forwards to the exchange all orders that pass the risk management criteria while rejecting any that do not meet them. The main components of the Internet Based Trading application are explained below: 1. 2. 5. reliability and high performance. It is completely written in JAVA and is portable to any Java supporting operating system. Internet Interface – The Internet interface is an interface to web server using advanced Inter Process Communication using DBMS Pipes and Message Queues. 3. which is also their CTCL software (approved by NSE). Exchange Connector – The Exchange connector is a software component that interfaces with the exchange for the purpose of sending Order requests and receiving back order and trade confirmations. Risk Management Module – The core of the application is the application server and risk management module. This interface is also runs on Tru-64 Unix.

COMPETITIVE STRENGTHS TO BE THE MARKET LEADER What keeps Indiabulls ahead of the competition is the competitive edge that it has over other players in the market. Diverse Branch Network 33  . This software gets installed on the client machine and is similar to a Dealer Terminal over the Internet. The terminal has a lot of features that makes it extremely usable from the point of view of a trader who is active in the market. Power Indiabulls Terminal – The Power Indiabulls Terminal is a terminal ideally suited for the active trader. Some of the product features are • • • • • • Integrated market watches for commodities Multiple tick by tick charting Advanced Technical Analysis Single key stroke order entry Easy to use risk management reports Secured Socket Layer connectivity with server • Two second order confirmation turnaround time even during peak hours.• • • • • • Connection management with reconnects functionality Compression of market data for optimized bandwidth utilization Streaming of data to the terminals Advanced Database Connection Pooling through proprietary logic for performance In built security features against D-Dos attacks Bandwidth throttling for better performance on slow Internet connections at client end. 7.

is its profitability-oriented culture. The aggressive profit sharing model (with the employees) that it pursues is another major high of the core competency. ETHICAL VALUES Indiabulls has a performance driven culture where the core value.  Bouquet of financial products and services Advanced technology team that delivers market leading product Strong sales and marketing teams with continuous reinvestment and Strong cross selling opportunities Strong and experienced promoters Leading product innovation and marketing strategies Well capitalized player. Every employee is an entrepreneur in his own right. 34 . which drives the organization. with strong banking relationships and credit Ability to combine people and technology in unique ways Strong market presence and increased market share leading to a virtuous innovation  training     ratings   cycle of growth and profitability. trying to make profits for himself as well as the Company CORE COMPETENCY The company’s core competency is its unique business model – the model of relationship managers by which those who trade through the internet also gets the human touch.

tools for investing their assets.] KEY BUSINESS STRATEGIES Their focus on the client has allowed the company to offer a range of services that have changed the investing landscape and created a new model of financial services that melds people and technology to provide an integrated human assisted technology interface service for investors who range from self-directed full-time active investor to those who prefer to deal with through a marketing associate in smaller towns and cities. their willingness to pay for additional services and the level of business they can do with us  Provide clients with tools. THEIR KEY STRATEGIES INCLUDE:  Defend and maintain our differentiation as the firm that delivers ethical and useful services  Build and expand our “investing insight” through our product offerings such as commodity analysis  Give clients new levels of choice tailored to their desire for help. relationship managers and choices that support their desired investment outcomes 35 .

They have developed a client specific approach as a core element of their business strategy and are constantly focusing on acquiring new clients and expanding their customer base. increasing liquidity and market capitalization of Indian markets. and the increasing affluence of Indian households and savers provides an impetus to our growth perspective. SOCIAL INITIATIVES Does the business house think of the society and the nation or are they basically concerned about profit generation only. they believe that they could contribute to the society by doing what they are best at – making profits for the stakeholders and also employing more people. led by the listing of many public sector entities.they did contribute to the Tsunami Relief Fund (2 days salary of every employee). The company as such has not undertaken any major social initiative . due to increased household penetration of financial assets. They believe that the strong secular growth of the Indian financial markets. 36 . The company as such does not believe in doing something different from their business.

pulses In other words. Commodities are agreements to buy and sell virtually anything except. 37 . crude oil . They include natural resources. as shown in diagram. chemicals and physical products one can touch. smell. commodities are more specifically known as physical assets. grow. what is actually traded are commodities futures contracts or options. for some reason. gold and agricultural products.INVESTORS AVENUES IN COMMODITY MARKET What are “commodities”? A commodity is anything for which there is demand. consume or deliver. There are different type of commodities available for trading in commodities market. gold. "Commodity trading" is often used to describe all types of futures markets. Which were as follow. but which is supplied without qualitative differentiation across a given market. taste. Since no one really wants to transport all those heavy materials. we can say. onions. mine. These are agreements to buy or sell at an agreed upon price on a specific date. The primary commodities that are traded are oil.

It is an exchange where various commodities and derivatives products are traded. sugar. cocoa. Most commodity markets across the world trade in agricultural products and other raw materials (like wheat. Energies 4. It is a “Future Market” where trading is done on ‘contract’ basis. Buyer can buy in any contract for trading or for future delivery 38 . pork bellies. Base Metals 3. Every commodity has different contract with different contract duration. barley. pulses.Commodities can be divided in four parts. cotton. as: 1. milk products. oil. Agri Products What is commodity market? Commodity market is an exchange for buying and selling commodities for future delivery. spices). for a same commodity.Each contract may have different price one contract to another. coffee. maize. metals. Precious Metals 2.

What is future market? Commodity market is a future market where trading is done on future dated contracts(i. a grain farmer might sell a futures contract to guarantee that he receives a certain price for his grain.e.There are five basic division in which all commodities can be classified. rather than to ever actually own the underlying commodity. day traders need to know when the current futures contract will expire. For example. which specify that the underlying index. speculators are those willing to take on risk in the hope of making a profit. or commodity will be bought or sold for a specific price on a specific date in the future (known as the expiration date). with an expiry date)Futures markets trade futures contracts. so that they can make sure that they do not have any open positions at that time. currency. or a livestock farmer might by a futures contract to guarantee that he can buy his winter feed supply at a certain price. Even so. Futures contracts are traded by both day traders and longer term traders. Precious metals. Silver 39 .Gold. What Commodities Can I Trade? You'll find a list of commodity futures contracts available to trade. both the buyer and the seller of a futures contract are obligated to fulfill the contract requirements at the end of the contract term. 1. Day traders are not so concerned about these obligations because they do not keep the futures contract until it expires Participants in Commodities Markets? Participants in commodities markets fall under two main categories — hedgers and speculators. Either way. While hedgers seek to minimize and manage price risk. Day traders trade futures contracts to make a profit on the difference between the buying price and the selling price. but also by non traders with an interest in the underlying commodity.

If the equity in your account has declined in value to the "maintenance margin level" (approximately 75% of the amount required to enter into the trades originally). Margin is the small portion of total money that is needed for trading. zinc. You can.Spices (Black Pepper. This is called a "margin call. aluminum. etc. “Initial Margin” is that amount which must b deposited in the margin account at the time of future contract is first entered into. Agri Products. 3. etc. It is the certain % of total value of money. you would continue to be liable for that loss. you are required to provide more margin money to restore the initial margin level. If your position is liquidated at a loss. Turmeric. Energies-Natural Gas. How is ‘margin’ determined? Each day. What if one is unable to pay a ‘margin call’? If you fail to meet a margin call within a reasonable period of time. Red chilli. Pulses (Chana. What is “MARGIN”? It is required to deposit “INITIALL MARGIN” for trading in commodity market.2. Crude Oil 4." This eliminates the needs to make repeated margin calls when daily price changes are relatively small. your brokerage firm may close out your positions to reduce your margin deficiency.Masur. Base Metals-Copper.Yellow Peas). therefore. your broker will calculate the current value of futures and option contracts held in your account. lose substantially more than your original margin deposit! 40 . Oil.). which could be as little as one hour. jeera.

NCDEX – National Commodity & Derivative Exchange Margin is decided by both exchanges (NCDEX and MCX) and the same report is sent to broker houses through internet and the same margin money is to maintained by trader in his trading account 41 . MCX –Multi Commodity Exchange 2.Commodity Market – FUTURE market. based on future contracts. 1. It is run by following two exchanges.

2 Price Quotation RS.757 8.800 251. 4 124.334 26. Both exchanges set there margin file on bases of marin% of money is to maintained.720 Approx Margin (Rs) 26.6 132 3 137 3 134 7. RS/QUINT AL RS/QUINT AL RS/QUINT AL RS/QUINT AL Lot Size 2000 2000 2000 10 10 10 10 Margi n% 11% 11% 11% 7% 7% 6% 7% Varia nt 2000 2000 2000 100 100 100 100 Lot Value(R s) 246.MARGIN REPORT This report contain daily margin amount payable by the members(traders).300 137.732 8.577 8.000 129. RS. 4 125.760 132. RS.300 134. NCDEX 28-Jul-08 Commodity ALUMINIUM ALUMINIUM ALUMINIUM BARLEYJPR BARLEYJPR BARLEYJPR BARLEYJPR Expiry 31-Jul08 29-Aug08 30-Sep08 20-Aug08 19-Sep08 20-Oct08 20-Nov08 LTP 123. 5 129 7./KG. This is the daily report which is downloaded at the beginning of the trading day before opening of the market./KG.800 248./KG.522 26.865 42 .911 8.

000 358.114 11.000 356.750 337.797 30. 4 102.280 10.2 528 4 532 6 537 1.700 293.500 272.924 15. 75 334.175 28. 1 471.800 216.620 116.100 219.031 51. 4 631.540 10.380 113. 1 582.214 9.521 28. 9 111.400 357.040 92.600 537.912 10. 8 105.720 528.600 210.683 17.837 17.480 205.BARLEYJPR BRENTCRU DE BRENTCRU DE BRENTCRU DE CASTORDS A CASTORDS A CASTORDS A CASTORDS A CHLL334GT R CHLL334GT R CHLL334GT R COCUDCAK L COCUDCAK L COCUDCAK L COCUDCKDI COCUDCKDI COFFEERC COFFEERC COFFEERC COFFEERC COFFEERC COPELCMU M1 COPELCMU M1 COPELCMU M1 COPELCMU M1 COPELCMU M1 COPELCMU M1 19-Dec08 14-Aug08 15-Sep08 16-Oct08 20-Aug08 19-Sep08 20-Oct08 20-Nov08 20-Aug08 20-Oct08 19-Dec08 19-Sep08 19-Dec08 20-Jan09 19-Sep08 19-Dec08 19-Sep08 19-Dec08 20-Mar09 20-May09 20-Jul09 31-Jul08 29-Aug08 30-Sep08 31-Oct08 28-Nov08 31-Dec08 138 7. 9 568.299 43 .700 109.541 14.200 298.027 30.020 94.662 52.750 362. 75 362 RS/QUINT AL Rs/Barrel Rs/Barrel Rs/Barrel RS/20 KG RS/20 KG RS/20 KG RS/20 KG RS/QUINT AL RS/QUINT AL RS/QUINT AL Rs/50 KGS Rs/50 KGS Rs/50 KGS Rs/50 Kg Rs/50 Kg RS\KG RS/KG RS/KG RS.961 18. 75 337. 4 357 356 358.990 11. 8 615 545 4 586 4 597 4 545./KG RS\KG RS/KG RS/KG RS/KG RS/KG RS/KG RS/KG 10 100 100 100 10 10 10 10 5 5 5 10 10 10 10 10 2000 2000 2000 2000 2000 1000 1000 1000 1000 1000 1000 7% 10% 10% 10% 6% 6% 6% 6% 5% 5% 5% 10% 11% 7% 13% 9% 5% 5% 5% 5% 5% 9% 9% 8% 8% 8% 8% 100 100 100 100 500 500 500 500 50 50 50 200 200 200 200 200 2000 2000 2000 2000 2000 1000 1000 1000 1000 1000 1000 138.500 334.173 14.177 10.700 317.000 9. 4 635.200 315.667 29. 4 108.900 307.400 532.5 630.113 6.800 223.150 315.805 10. 05 109.255 51.535 14. 2 460.814 29.104 17.

462 42.418 15.135 19.150 715.776 41. 85 460.000 375. 25 572.329 65.278.860 330. 7 456.40 0 1.805 41. 75 521 6 534 8 595 0 751 9 764 7 327 86 330 93 333 66 479 8 493 8 511 0 198 3 205 6 212 9 127 17 127 74 127 85 709.930 333.817 14.300 283.50 0 709./Barrel Rs. 15 715 721.277.181 14.606 15.000 721.909 18.463 41.610 40.800 595.350 327.784 19.300 205.CRDPOLKD L CRDPOLKD L CRDPOLKD L CRUDEOIL CRUDEOIL CRUDEOIL CSHW320KL M CSHW320KL M FURNACEOI L FURNACEOI L FURNACEOI L GARGUMJD R GARGUMJD R GARGUMJD R GARSEDJD R GARSEDJD R GARSEDJD R GLDPURMU MK GLDPURMU MK GLDPURMU MK GNOEXPRK T GNOEXPRK T GNOEXPRK T GNOEXPRK T GNSHELJNG GNSHELJNG GNSHELJNG 20-Aug08 19-Sep08 20-Oct08 14-Aug08 15-Sep08 15-Oct08 19-Sep08 20-Nov08 14-Aug08 17-Sep08 17-Oct08 19-Sep08 20-Nov08 20-Jan09 19-Sep08 20-Nov08 20-Jan09 20-Aug08 19-Sep08 20-Oct08 20-Aug08 19-Sep08 20-Oct08 20-Nov08 20-Aug08 19-Sep08 20-Oct08 459.710 19.600 212.600 534.271. 1 727.100 727.065 14./Barrel Rs/Carton Rs/Carton RS/MT RS/MT RS/MT RS/QUINT AL RS/QUINT AL RS/QUINT AL RS/QUINT AL RS/QUINT AL RS/QUINT AL RS/10 GMS RS/10 GMS RS/10 GMS RS/10 KG RS/10 KG RS/10 KG RS/10 KG RS/20 KG RS/20 KG RS/20 KG 1 1 1 100 100 100 50 50 10 10 10 5 5 5 10 10 10 10 10 10 10 10 10 10 10 10 10 6% 6% 6% 8% 8% 7% 5% 5% 13% 16% 13% 8% 8% 8% 8% 8% 8% 5% 5% 5% 6% 6% 6% 6% 5% 5% 5% 100 100 100 100 100 100 50 50 10 10 10 50 50 50 100 100 100 100 100 100 1000 1000 1000 1000 500 500 500 45.975 16.303 44 .163 52. 25 562.050 2.900 1.611 2.950 382.136 19.685 46.660 239.618 2.625 286.900 246.113 41./Barrel Rs.250 281.970 45.900 255.70 0 1.640 40. 6 567.372 40.075 521. 1 RS/10 KGS RS/10 KGS RS/10 KGS Rs.493 66.169 66.485 42.500 198.

513 11.424 6.960 236.475 127. 2 582. 2 133 44 136 37 138 46 145 0 152 8 154 1 585 604 591.880 232.679 8.846 15.880 400.687 8.819 15.555 118.55 418 5 422 0 425 6 RS/20 KG RS\10GMS RS\10GMS RS\10GMS RS/40 KGS RS/40 KGS RS/40 KGS RS/QUINT AL RS/QUINT AL RS/QUINT AL RS/QUINT AL RS/QUINT AL RS/QUINT AL Rs/20 KG Rs/20 KG Rs/20 KG RS/QUINT AL RS/QUINT AL RS/QUINT AL RS/QUINT AL RS/QUINT AL RS/QUINT AL RS/QUINT AL RS/QUINT AL Rs/Quintal Rs/Quintal Rs/Quintal 10 100 100 100 40 40 40 3 3 3 10 10 10 1 1 1 10 10 10 10 10 10 10 10 10 10 10 5% 5% 5% 5% 5% 6% 5% 8% 8% 8% 6% 6% 6% 8% 8% 8% 15% 15% 11% 12% 7% 7% 7% 7% 10% 6% 6% 500 10 10 10 400 400 400 30 30 30 100 100 100 200 200 200 100 100 100 100 100 100 100 100 100 100 100 288.110 415.800 154.320 409.535 120.488 8.869 11.100 117.005 32.000 152.300 100.944 12.340 105.35 120 5.55 118 5.759 8.954 9.5 967 117 5.555 418.595 24.460 128.GNSHELJNG GOLD100MU M GOLD100MU M GOLD100MU M GURCHMUZ R GURCHMUZ R GURCHMUZ R JEERAUNJH A JEERAUNJH A JEERAUNJH A JUTRAWKO L JUTRAWKO L JUTRAWKO L KAPASSRN R KAPASSRN R KAPASSRN R MAIZYRNZM MAIZYRNZM MAIZYRNZM MAIZYRNZM MSOILCGNR MSOILCGNR MSOILCGNR MSOILCGNR MSRBLDIDR MSRBLDIDR MSRBLDIDR 20-Nov08 20-Aug08 19-Sep08 20-Oct08 19-Sep08 20-Nov08 19-Dec08 19-Sep08 20-Oct08 20-Nov08 20-Aug08 19-Sep08 20-Oct08 27-Feb09 31-Mar09 30-Apr09 20-Aug08 19-Sep08 20-Oct08 20-Nov08 20-Aug08 19-Sep08 20-Oct08 20-Nov08 20-Aug08 19-Sep08 20-Oct08 576.834 8. 4 592.100 128.380 145.550 96.000 120.600 105.412 13.25 119 5.688 9.525 119.054 24. 7 105 6 105 3 100 5.852 33.490 272.189 8.800 118. 95 127 46 128 10 128 49 682.909 40.309 6.367 8.836 13.000 425.600 14.259 45 .354 6.500 422.386 32.700 117.753 9.

500 88.088 292.997 123.179 46.035 26. RS.55 125. 75 794.375 196.000 531.750 626.251 37.800 Approx Margin (Rs) 37.938 198.400 290.137 46. 5 787.750 26./KG.590 46 . 8 812. 7 781.500 659.750 88.425 4.500 531.123 46.718 MCX 28Jul-08 Commod ity ALUMINI UM ALUMINI UM ALUMINI UM ARECAJ HAJI ARECAJ HAJI ARECAJ HAJI ATF ATF ATF ATF ATF BRCRUD EOIL BRCRUD EOIL BRCRUD Expiry 31-Jul08 29-Aug08 30-Sep08 14-Aug08 15-Sep08 15-Oct08 25-Aug08 25-Sep08 24-Oct08 25-Nov08 24-Dec08 8-Aug08 10-Sep08 10-OctLTP 123.045 25.278 122.900 535.35 8850 8827 8850 6595 6591 6589 6597 6589 5350 5315 5318 Price Quotati on 1KGS 1KGS 1KGS 100KGS 100KGS 100KGS 1BBL 1BBL 1BBL 1BBL 1BBL 1BBL 1BBL 1BBL Lot Size (Qty) 5000 5000 5000 10 10 10 100 100 100 100 100 100 100 100 Margin % 6% 6% 6% 5% 5% 5% 7% 7% 7% 7% 7% 5% 5% 5% Lot Value(Rs) 618. RS.605 4.263 10.080 34.920 122.100 658.575 26.400 266.425 46.829 26.414 4./KG. RS/QUINT AL 360 360 360 360 250 250 250 1 46% 46% 43% 43% 13% 13% 13% 8% 360 360 360 360 250 250 250 10 266.984 125.500 659./KG. 65 139 92 Rs/KG Rs/KG Rs/KG Rs/KG RS.000 622.270 88.900 659.572 195.6 124.663 139.165 46.MTHOILCHD MTHOILCHD MTHOILCHD MTHOILCHD NICKEL NICKEL NICKEL PPRMLGKO C 20-Aug08 19-Sep08 20-Oct08 20-Nov08 31-Jul08 29-Aug08 30-Sep08 20-Aug08 740 740 805.700 658.123 26.

490 22.100 521.4 450.870 16.5 607.1 5214 5237 5349 1KGS 1KGS 1KGS 1KGS 1KGS 1MT 1MT 1MT 1MT 1MT 1MT 1MT 1KGS 1KGS 1KGS 1KGS 1KGS 1Candy 100KGS 100KGS 10KGS 10KGS 10KGS 10KGS 1BBL 1BBL 1BBL 500 500 500 1130 1130 250 250 200 200 200 200 200 1000 1000 1000 1000 1000 25 100 100 1000 1000 1000 1000 100 100 100 6% 6% 6% 5% 5% 6% 6% 6% 6% 6% 6% 6% 5% 5% 5% 5% 5% 5% 5% 5% 5% 5% 5% 5% 7% 7% 7% 319.400 337.5 1444.1 98.443 47 .218 16.535 22.040 22.5 1957.750 303.5 1878 100.2 337.005 4.100 98.500 164.620 22.873 35.210 22.4 337.586 18.420 384.450 701.500 18.400 450.250 163.871 19.400 523.100 375.700 97.5 452.358 21.505 36.500 375.063 8.200 450.7 97.200 372.498 36.900 17.000 377.7 450.536 5.45 28050 1635 1642 450.146 22.200 337.659 37.668 23.700 450.860 16.25 600 334 340 1490.5 1878.600 100.625 361.EOIL CARDAM OM CARDAM OM CARDAM OM CASHEW KERN CASHEW KERN CER CER CFI CFI CFI CFI CFI COFROB COFROB COFROB COPPER COPPER COTTON LONG COTTON SEED COTTON SEED CPO CPO CPO CPO CRUDEO IL CRUDEO IL CRUDEO IL 08 14-Aug08 15-Sep08 15-Oct08 14-Aug08 15-Sep08 25-Nov08 25-Feb09 15-Dec08 15-Dec09 15-Dec10 15-Dec11 14-Dec12 29-Aug08 31-Oct08 31-Dec08 29-Aug08 26-Nov08 15-Oct08 31-Jul08 30-Aug08 31-Jul08 30-Aug08 30-Sep08 31-Oct08 14-Aug08 15-Sep08 15-Oct08 639.210 22.500 452.125 391.175 8.525 22.542 23.625 300.700 384.935 4.700 534.000 369.5 1920 1845.

279.750 330.828 12.279.350 239.890 127.279.100 10.260 1.168 50.220 25.195 9.700 1.600 1.CRUDEO IL DRB DRB DRB FURNAC EOIL FURNAC EOIL GOLD GOLD GOLD GOLD GOLD GOLDGU INEA GOLDGU INEA GOLDM GOLDM GOLDM GUARGU M GUARGU M GUARGU M GUARSE ED GUARSE ED GUARSE ED GUARSE ED IGOLDA HM IGOLDA HM IGOLDD EL IGOLDD EL IGOLDK 14-Nov08 14-Aug08 15-Sep08 15-Oct08 31-Jul08 29-Aug08 5-Aug08 4-Oct08 5-Dec08 5-Feb09 4-Apr09 31-Jul08 30-Aug08 5-Aug08 5-Sep08 4-Oct08 20-Aug08 19-Sep08 20-Oct08 20-Aug08 19-Sep08 20-Oct08 20-Nov08 29-Jul08 5-Aug08 29-Jul08 5-Aug08 29-Jul- 5404 4834 4807 4781 32675 33026 12687 12790 12854 12845 13001 10165 10250 12689 12777 12810 4957 5044 5039 1986 1980.244 48 .160 51.600 198.200 1.513 50.076 5.281.085 12.045 51.930 9.500 200.400 241.285.124 24.803 58.748 51.5 1995 2009 12792 12616 12792 12625 12811 1BBL 1MT 1MT 1MT 1MT 1MT 10GRM S 10GRM S 10GRM S 10GRM S 10GRM S 8GRMS 8GRMS 10GRM S 10GRM S 10GRM S 100KGS 100KGS 100KGS 100KGS 100KGS 100KGS 100KGS 10GRM S 10GRM S 10GRM S 10GRM S 10GRM 100 50 50 50 10 10 100 100 100 100 100 1 1 10 10 10 100 100 100 100 100 100 100 100 100 100 100 100 7% 5% 5% 5% 5% 5% 4% 4% 4% 5% 5% 4% 4% 4% 4% 4% 5% 5% 5% 5% 5% 5% 5% 4% 4% 4% 4% 4% 540.505 407 410 5.165 10.700 240.500 51.100 37.900 198.261.975 10.770 128.268.050 199.953 16.284.416 57.700 504.111 5.000 1.900 1.400 1.338 16.050 326.200 1.903 9.100 495.785 25.018 11.250 126.168 50.500 1.262.300.500 1.464 51.400 503.

8 506.250 455.110 126.067 51.612 42.124 5.449 2.464 270.564 23.345 22.5 1680 489.25 91.049 5.700 376.670 1.5 1585.668 18.472 50.218 8.533 2.928 8.147 5.920 126.008 49 .160 127.5 1643.800 1.350 168.550 164.046 5.900 265.000 48.286.850 158.250 128.230 451.9 S 10GRM S 10GRM S 10GRM S 10GRM S 10GRM S 10GRM S 10GRM S 10GRM S 10GRM S 10GRM S 10GRM S 100KGS 100KGS 100KGS 100KGS 100KGS 100KGS 50KGS 50KGS 50KGS 1KGS 1KGS 1KGS 100KGS 100KGS 1KGS 1KGS 100 10 10 10 10 10 10 10 10 100 100 30 30 100 100 100 100 100 100 100 5000 5000 5000 100 100 360 360 4% 4% 4% 4% 4% 4% 4% 4% 4% 4% 4% 5% 5% 5% 5% 5% 5% 5% 5% 5% 10% 10% 9% 5% 5% 9% 9% 1.7 1056 1069 737.243 7.050 5.200 127.400 2.869 43.265 5.3 90.650 52.684 50.500 105.813 7.220 128.804 18.262.249 41.266.980 50.680 126.488 5.117 5.250 458.280 5.4 751.05 91.600 106.5 522.117 5.OL IGOLDK OL IGOLDM AHM IGOLDM AHM IGOLDM DEL IGOLDM DEL IGOLDM KOL IGOLDM KOL IGOLDM MUM IGOLDM MUM IGOLDM UM IGOLDM UM JEERA JEERA JUTE JUTE JUTE JUTE KAPASK HALI KAPASK HALI KAPASK HALI LEAD LEAD LEAD MAIZE MAIZE MENTHA OIL MENTHA OIL 08 5-Aug08 29-Jul08 5-Aug08 29-Jul08 5-Aug08 29-Jul08 5-Aug08 29-Jul08 5-Aug08 29-Jul08 5-Aug08 14-Aug08 15-Sep08 31-Jul08 30-Aug08 30-Sep08 31-Oct08 31-Jul08 30-Aug08 30-Sep08 31-Jul08 29-Aug08 30-Sep08 14-Aug08 15-Sep08 31-Jul08 30-Aug08 12622 12792 12616 12792 12625 12811 12622 12868 12667 12868 12667 12536 12542 1448.260 144.080 376.920 126.


30-Sep08 31-Oct08 31-Jul08 29-Aug08 30-Sep08 20-Aug08 19-Sep08 20-Aug08 20-Aug08 19-Sep08 20-Oct08 31-Jul08 29-Aug08 30-Sep08 14-Aug08 15-Sep08 15-Oct08 15-Nov08 26-Sep08 29-Dec08 14-Aug08 15-Sep08 30-Sep08 14-Aug08 15-Sep08 5-Sep08 5-Dec08 5-Mar-

762.7 773.5 5607.5 5523.5 5541.5 592.7 601.2 646.8 385 398.6 410.9 775.9 794.5 806.8 14668 14710 14492 14600 23655 26547 6353 6377 3215.5 7284 7310 24392 24698 24935

1KGS 1KGS 1BBL 1BBL 1BBL 40KGS 40KGS 20KGS 1mmBtu 1mmBtu 1mmBtu 1KGS 1KGS 1KGS 100KGS 100KGS 100KGS 100KGS 10GRM S 10GRM S 100KGS 100KGS 100KGS 100KGS 100KGS 1KGS 1KGS 1KGS

360 360 100 100 100 250 250 500 1250 1250 1250 250 250 250 10 10 10 10 50 50 25 25 50 50 50 30 30 30

9% 8% 5% 5% 5% 5% 5% 5% 13% 13% 7% 7% 7% 10% 5% 5% 5% 5% 7% 6% 5% 5% 5% 5% 5% 5% 5% 5%

274,572 278,460 560,750 552,350 554,150 148,175 150,300 323,400 481,250 498,250 513,625 193,975 198,625 201,700 146,680 147,100 144,920 146,000 1,182,750 1,327,350 158,825 159,425 160,775 364,200 365,500 731,760 740,940 748,050

23,339 22,277 28,038 27,618 27,708 7,409 7,515 16,170 62,563 64,773 35,954 13,578 13,904 20,170 7,334 7,355 7,246 7,300 76,879 73,004 7,941 7,971 8,039 18,210 18,275 36,588 37,047 37,403



09 5-May09 30-Aug08 29-Nov08 28-Feb09 30-Apr09 20-Aug08 19-Sep08 14-Aug08 15-Sep08 14-Aug08 9-Aug08 10-Sep08 10-Oct08 20-Aug08 19-Sep08 20-Oct08 20-Nov08 20-Aug08 19-Sep08 20-Oct08 20-Nov08 19-Dec08 31-Jul08 29-Aug08 30-Sep08 20-Aug08 19-Sep08

25010 24398 24681 24853 25463 2685 2648 29290 29155 47250 36355 35725 34960 1728 1707 1716 1740 1620 1554 1575 1549 1540 968.25 948.5 993.5 4907 4903

1KGS 1KGS 1KGS 1KGS 1KGS 100KGS 100KGS 1MT 1MT 1MT 1MT 1MT 1MT 100KGS 100KGS 100KGS 100KGS 100KGS 100KGS 100KGS 100KGS 100KGS 1KGS 1KGS 1KGS 100KGS 100KGS

30 5 5 5 5 100 100 15 15 25 10 10 10 100 100 100 100 100 100 100 100 100 500 500 500 100 100

5% 5% 5% 5% 5% 5% 5% 5% 5% 5% 6% 5% 5% 5% 5% 5% 5% 5% 5% 5% 5% 5% 5% 6% 5% 5% 6%

750,300 121,990 123,405 124,265 127,315 268,500 264,800 439,350 437,325 1,181,250 363,550 357,250 349,600 172,800 170,700 171,600 174,000 162,000 155,400 157,500 154,900 154,000 484,125 474,250 496,750 490,700 490,300

37,515 6,100 6,170 6,213 6,366 13,425 13,240 21,968 21,866 59,063 21,813 17,863 17,480 8,640 8,535 8,580 8,700 8,100 7,770 7,875 7,745 7,700 24,206 26,084 24,838 24,535 26,967



20-Oct08 20-Nov08 31-Jul08 29-Aug08 30-Sep08

4950 5200 77.6 79.05 80.2


100 100 5000 5000 5000

6% 7% 8% 8% 8%

495,000 520,000 388,000 395,250 401,000

29,700 36,400 31,040 31,620 32,080

Trader trades in LOTS of commodity
One has to buy minimum of one lot. Suppose there is a trader who wants to buy gold. He has to buy minimum of 1kg of gold, as the lot size of Gold is 1kg, and multiple of that, i.e.1kg, 2kg, 3kg, so on.

Lot size of some of commodities are listed as follows:
Gold Gold Mini Gold Gini Silver Silver Mini Copper Zinc Aluminum Lead Crude oil Natural Gas Jeera Cardamon Black Perrer Red chilli Turmeric 5tons 5tons 5tons 100barrels 1250 mm Btu 3MT 5quintals (500kg) 1MT 2.5MT 10MT 52 1 kg 100gm 8gm 30kg 5kg 1MT

take delivery of any commodity.Once the account is opened then trader can trade . how to minimize risk. market chart. Procedure to start trading in commodity market To start trading in commodity market.Chana Masur Yellow Peas Jeera Cardamon Black Perrer Red chilli Turmeric Chana Masur Yellow Peas 10MT 10MT 10MT 1250 mm Btu 3MT 5quintals (500kg) 1MT 2. etc.hold. Now we discuss trading system. 53 . M2M(mark to market) file. One need to open its account in exchange through any brokerage house (like Indiabulls). Now further we discuss how trading is done in commodity market What are the basic requirements to start trading in commodity market. and profit calculation with example.5MT 10MT 10MT 10MT 10MT Now we are aware of basic terms of trading in commodities. commodity.

because it is the purchase (buy) price of commodity.e. They are: Buy is the lowest of a particular commodity for a particular day. if one want to sell commodity. ODIN Screen The ODIN system display following types of Information. i.TRADING SYSTEM MCX(multi commodity exchange) and NCDEX(national commodity and derivative exchange) operates on the ODIEN system. a fully automated screen based trading system. Sell Price-it’s the current market price at which seller can sell the commodity.e. Lowest Price. LTP(Last trade price): it’s the price at which last trade is done Highest Price: it is highest price of a particular commodity for a particular day. it will be purchased at PURCHASE PRICE. which adopts the principle of an order driven market. 54 . because it is the selling (sell) price of commodity. it will be sold at BUY’s the current market price at which buyers can buy the commodity. i. if one want to buy a commodity.

It might be the circumstance that after once reaching price at Rs. of amount more than Rs.12687 – Rs. whenever bid price matches market price. Now when ever market price of GOLD reaches Rs. Trading System . how much market of a commodity is high or low means we are agree to bear loss up to Rs. comparison between opening price and current market price: it is the %change in price at which market is opened and the current piece of a particular commodity for a particular day.7 /10 gm loss as price may fall more also.12687 and we put stop loss at 12680.Order Books The commodity trading system provides complete flexibility to members in the kinds of orders that can be placed by them. %change in price. but not more than that. level to which he is agree to bear loss on a particular commodity.e. Example: we purchase 2 lot of Gold M @ Rs.12680 it will again start increasing but we are not ready to take risk any more (i. %change in price as compare to closing price: it is the %change in yesterday’s closing price and today’s opening price. The stop loss condition is met under the following circumstances : 55 . Stop-Loss: it is the level that is decided by the trader.12680 then our 2lot Gold M will automatically get sold.Volume: it is the volume that has been traded of a particular commodity for a particular day. Orders are booked at a particular price as per trader’s choice and the same is sold or bought. This % indicate.12680) per 10 gm.7(rs.

then trader to earn profit can first sell certain quantity of a commodity and when price fall more then purchase that agreeg quantity that has been sold.A sell order in the Stop Loss book gets triggered when the last traded price in the normal market reaches or falls below the trigger price of the order. Buy order . 56 . Freeze/circuit Lower freez/circuit or seller freeze It is a market situation when there are lots of sellers and no buyer. i. Then the price falls. Short selling It is one of the basic feature of equity and commodity market. market get freezed and get LOWER CIRCUIT. Due to this high fall in price with absence of buyers.Sell order . i. if we have something kept purchased in out trading account then the same is to be sold up and vise-versa. difference between selling and purchase price. Square-up In commodities either we have to take delivery of good(commodity) before completion of a contract duration or to square up our position. SQUARE UP mean to balance our account. Like this he can make the profit of amount.e. as due to close competition between sellers. This is done when price of a commodity is falling. sellers get ready to sell their good at lower price. It means one can sell what he don’t have.e.A buy order in the Stop Loss book gets triggered when the last traded price in the normal market reaches or exceeds the trigger price of the order. and then later can square-up his account buy purchasing the sold quantity.

not allow the order that have come under quantity freeze for execution for any reason whatsoever including non-availability of exposure limits. the exchange may.) 1/10gm 1/10gm 1/kg Base Value 10gm 10gm 1kg Max. the exchange can approve such order. Order Size 10gm 10gm 600kg Delivery Unit 1 kg 100 gm 30 kg 57 .300 bales 3. Column1 Asset Symbol GLDPURMUM SLVPURDEL SYBEANIDR SYOREFINDR RMSEEDJPR RMOEXPJPR RBDPLNKAK CRDPOLKDL COTJ34BTD COTSI6ABD Column2 Quantity Freeze Unit 30. QUANTITY FREEZE All orders placed by members have to be within the quantity specified by the exchange in this regard.500 kg 300 MT (metric tonnes) 300 MT (metric tonnes) 300 MT (metric tonnes) 300 MT (metric tonnes) 300 MT (metric tonnes) 300 MT (metric tonnes) 3. at its discreation. In respect of order which have come under quantity freeze. However. in exceptional cases. as in this situation.300 bales Commodity future contract specification Commodities gold gold m silver Lot Size/Trading Units 1 kg 100gm 30kg Tic Size(Rs. the member is required to conform to the exchange that there is no inadvertent error in the order entry and the order is genuine. Table below gives the quantity freeze for each commodity contract. of buyers.000 gm 1. On such confirmation. Any order exceeding this specified quantity will not be executed but will lie pending with the exchange as a quantity freeze.Upper freeze/circuit or buyer freeze It is the situation when market go too high with absence of seller and presence of large no. buyer is ready to buy even at higher price but still there is no seller to sell that good.

1/barrels 0. but these three are the basic factors that one must consider before going for deciding the commodity he want to trade in. IN WHICH COMMODITY HE SHOULD INVEST • • • Margin Money Market movement Profit as per lot size There are many more factors which effect the investment decision.5MT 10MT 3MT 500kg (5quintals) 10MT 10MT 10MT 1/kg 1/10gm 0.1/ 1/kg 1/kg 1/kg 1/kg 0.05/kg 0.silver m Platinum copper zinc nicle aluminium lead cruid oil natural gas black pepper red chilli turmeric jeera cardamon chana masur yellow peas 5kg 500 gm 1MT 5tons 250kg 5tons 5tons 100barrels 1250mm Btu 1MT 2.05/kg 150/MT 0. Now we will discuss these three in brief: 58 . FACTORS THAT HELP INVESTER IN DECIDING.05/kg 0.05/kg 0. The tick size in respect of all futures contracts admitted to dealings on the NCDEX is 5paisa.5MT* 10 MT 3MT 500 kg 10 MT 10 MT 10 MT Tick size for contracts Tick size is the smallest price change that can occur for the trades on the exchange.25/kg 1/kg 1/kg 1/kg 1kg 10gm 1kg kg 1kg 1kg kg 10gm 100kg 100kg quintal 100kg 100kg 100kg 600kg 5kg 20000MT 100 tons 24 Mt 150 MT 100 tons 10000 barrels 20000 MM Btu 50 MT 100 MT 101 MT 60MT … 100 MT 4000 MT 100 MT 30 kg 500 gm 9 MT 10 Tonns 3 MT 10MT 10 Tons 50000 barrels 10000 barrels 1MT 2.

He has to look for some other metal • MARKET MOVEMENY: it is the movement one commodity shows.50.e.50748 (i. Let say for example one is ready to invest Rs.4%.1268700%.Rs.50000 he cant trade in gold.12687 (for 10 gm). lot value . SOME OF OTHER FACTORS THAT EFFECT INVESTMENT DECISION ARE:  Market trend  US Based Data  Unemployment data  Inflation/deflation  Housing loans  Stock (stock of different commodities come in different week days.4% of Rs.1268700). and as per lot size one calculate the margin money needed to invest and match that with his plan of initial initial money and want to trade in precious metals. that to effect price of good and investment decision of investor)  Technical charts  Fundamental news  Weather condition (mainly for investment in agri products)  GDP. than it will be not be possible to earn profit frequently. margin money is Rs. 59 . With Rs. Margin. etc. If one invest in commodity which shows less or no moment.000/. lot size 1kg. Market rate of GOLD is Rs. • LOT SIZE : one should consider the lot size of the commodity. So he should go for some other commodity.• MARGIN MONEY: How much money one is ready to invest as initial margin and how much money is needed as margin in different commodities.

commodities already deposited and dematerialized and offered for delivery etc. Physical settlement (by delivery) or financial settlement (by price difference) of contracts. 5.CLEARING AND SETTLEMENT Most future contracts do not lead to the actual physical delivery of the underlying asset. Control of the evolution of open interest. All these settlement functions are taken care of by an entity called clearing house or clearing corporation. A clearing house is a system by which exchange guarantee the faithful compliance of all trade commitments undertaken on the trading floor or economically over the electronic trading system. Trade registration and follow up 3. the matching for deliveries takes place firstly. 2. keeping in view the factors such as available capacity of the vault/warehouse. on the basis of locations and then randomly. Typically it is responsible for the following: 1. 6. Clearing mechanism Only clearing member including professional clearing members (PCMs) are entitled to clear and settle contracts through the clearing house. matching 60 . Financial clearing of payment flow. CLEARING Clearing of trade takes that takes place on an exchange happens through the exchange clearing house. after the trading hours on the expiry date. physical delivery or cash settlement. based on the available information. The settlement is done by closing out open positions. National Securities Clearing Corporation Limited (NSCCL) undertakes clearing of trades executed on the NCDX. 4. Effecting timely settlement. Administration of financial guarantees demanded by the participants. It guarantees the performance of the parties to each transaction. Settlement guarantee fund is maintained and managed by NCDEX. The main task of clearing house is to keep track of all the transactions that take place during a day or so that the net position of each of its member can be calculated. At NCEX.

61 .e. Every clearing member is required to maintain and operate a clearing account with any of these banks. Unmatched positions have to be settled in cash. for settling funds and other obligations to NCDEX including payment of margin and penal charges. Canara Bank. AXIS Bank Limited and HDFC Bank Limited” as clearing banks through whom funds to be paid and/ or to be received must be settled.e. for settlement and receiving deliveries from NCDEX.  Depositary participants Every clearing member is required to maintain and operate a CM pool account with any of the empanelled depository participant. The CM pool account is to be used exclusively for clearing operations i. clearing members are informed of the deliverable/receivable position and the unmatched positions. these clearing accounts are used exclusively for clearing operations i. The cash settlement is only for the incremental gain/loss as determined on the basis of final settlement price.. After completion of the matching process.  Clearing banks NCDEX has distinguished “ICICI Bank Limited.done by this process is binding on the clearing members.

when the members holds an position.closing price as arrived after closing session of the relevant future contract for the trading day. it is the difference between the daily settlement price for that day and the previous day’s settlement price. it is the difference between the expiry value and daily settlement price of that day. The spot prices are collected from members across the country through polling. Final settlement price. SETTLEMENT MECHANISM Daily mark to market settlement Daily mark to market settlement is done till the date of contract expiry.closing price is the underlying commodity on the last trading day of the future contract. FINAL SETTLEMENT On the date of expiry. This is done to take care of daily price fluctuations for all traders. daily MTM settlement and final MTM settlement in respect of admitted deals in future contracts are cash settled by debiting/ crediting the clearing accounts of CMs with the respective clearing bank. • • Daily settlement price. The pooling 62 . On the NCDEX. On any intervening days.SETTLEMENT Future contracts have of two types of settlements. the MTM settlement which happens on a continuous basis at the end of each day. the final settlement price is the spot price on the expiry date. and the final settlement which happens on the last trading day of the future contract. All the open positions of the members are marked to market at the end of the day and the Profit/loss is determined as below: • • On the day of entering into the contract.

Service tax as applicable. Cash prices are bootstrapped and the mid of the two bootstrapped prices is taken as the final settlement price. Closing out by offsetting positions 3. Additional Charges Other Than Brokerage Levied On the Investor? The trading member can charge: 1. Stamp duty and other charges directly attributable to the 63 . SETTLEMENT METHODS Settlement of future contracts on the NCDEX can be done in the three ways – 1. The brokerage and service tax is indicated separately in the contract note. Transaction charges levied by MCX and NCDEX. Physical delivery of the underlying asset 2. 2.Indiabulls. 3. Securities Transaction Tax. Rights of Investors The investor has right to get – • • • Proof of price/brokerage charged Money/Commodity on time Statement of Accounts and Contract Note from trading member Obligations of Investor The obligations to investor are – • • • • Sign a proper Member-Constituent Agreement Possess a valid contract or purchase/sale note Deliver commodity & make payment on time Provide Margin before trade Various kinds of accounts that are needed to trade via Internet with Broker This facility is provided by Indiabulls through its online trading website www.

But slowly and steadily the commodity investment in India is and will continue to increase its share in the market and gain acceptability with the consumers. For India the journey has begun and will take considerable time before the organized commodity market can come in the same proximity as that of other investment options. It is easily convertible and have a more personal form of customer relationship management than other sectors which are not as personal due to its wide client base. As per business saying “HIGHER THE RISK. Best side of commodity market is that it is providing option of PHYSICAL DELIVERY of commodity. customers trust the mutual funds which provide them with vast number of investment options and equity holding to give them a better deal than the organized.CONCLUSION It has been found and demonstrated in this study that organized commodity market in India is on a fast paced road to success. This has been considered that today investors are more risk prone and they prefer to analyze market before looking for the investment options. it applies over here this investment market. Though it is comparatively more risky to put forth one’s savings in commodity but gives higher returns and it is more liquid than that of other forms of investment. Especially for the maximum returns. HIGHER THE PROFIT”. 64 . Now it has become a benchmark for those who are ready to invest a large amount of that part of income which is left after due consumption. And it provide higher profit margin but on same side risk is also higher.

com www.REFERENCES: Websites • • • • • Newspapers • NCFM commodity market module work book • NCFM capital market dealer module work book 65 www.kitco.Google.

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