PES UNIVERSITY

(Established under Karnataka Act No 16 of 2013) 100ft Ring Road,

Bengaluru-560 085, Karnataka, India

A Internship report on
‘NATIONAL INSISTUTE OF SECURITIES MARKETS –
INTRODUCTION TO SECURITY MARKETS’

Submitted by

S D KAVITHA JAIN (PES1201700876)

June – July 2019

Under the guidance of

External guide Internal Guide

Dr. Latha Chari Abhilash .R
Professor Assistant Professor
NISM Department of BBA
PES University
Bangalore 560085

FACULTY OF MANAGEMENT STUDIES

DEPARTMENT OF BBA
PROGRAM BBA
 DECLARATION

I,MS S D KAVITHA JAIN , hereby, declare that the dissertation entitled,

‘NISM(NATIONAL INSTITUTION OF SECURITIES MARKETS)– Organizational
Study', is an original work done under the guidance of Prof.Abhilash.R, Assistant Professor,
PES University Department of Management studies, BBA Department, and is being
submitted in partial fulfillment of the requirements for completion of Internship work in the
Program of Study BBA in PES University

PLACE: Bengaluru
DATE: NAME AND SIGNATURE OF THE CANDIDATE
 FACULTY OF MANAGEMENT STUDIES
DEPARTMENT OF BBA
PROGRAM BBA

CERTIFICATE

This is to certify that the Internship work

‘NATIONAL INSTITUTION OF SECURITIES MARKETS)’–

Organizational Study'

Is a bonafide work carried out by

Ms S D KAVITHA JAIN
SRN – PES1201700876

In partial fulfillment for the completion of Internship work in the Program of Study BBA
under rules and regulations of PES University, Bangalore during the period June 2019-
July 2019. It is certified that all corrections/suggestions indicated for internal assessment
have been incorporated in the report. The Internship report has been approved as it
satisfies the academic requirements in respect of Internship work.

Signature with date & Seal Signature with date & Seal Signature with date & seal
Internal Guide Chair person Dean of Faculty

Name of the student: S D KAVITHA JAIN

SRN: PES1201700876
 ACKNOWLEDGEMENT:

I am personally thankful to my university for giving me the opportunity to do my internship

at a place NISM(NATIONAL INSTITUTION OF SECURITIES MARKETS),MUMBAI. It
has given me exposure and great knowledge about various departments. It has truly given me
the first hand experience which helped me to grasp and relate to the theoretical knowledge
much better.

I would also like to thank my company guide Mr .JAINENDRA who helped me explore the
organization and gain knowledge to my satisfaction. I would like to thank the Vice
Chancellor Dr.KNB Murthy, Dean FOM Dr. Vijaykumar ,chairperson of BBA Department
Prof. Harish G. Also, I would like to thank my internal guide Prof.Abhilash for guiding me
and throwing light on the areas to focus on throughout my internship journey. Lastly, I would
like to thank my parents and friends for supporting and walking with me
Through my internship journey.
Table of content

Chapter Chapters Page no

List of table
LIST OF GRAPHS
CHAPTER 1
INTRODUCTION

1.1 INTRODUCTION TO STUDY

The wholesale money market involves the purchase and sale in large volumes
of short-term debt products.
An individual may invest in the money market by purchasing a money market
mutual fund, buying a Treasury bill, or opening a money market account at a
bank. Money market investments are characterized by safety and liquidity.
On the widest scale, the money market is one of the pillars of the global
financial system and involves overnight swaps of vast amounts of money between
banks and the U.S. government. In all cases, they are low-risk investments that
have maturities ranging from overnight to just under one year. That short life
makes them almost as liquid as cash. That is, the principal is safe and the money is
not inaccessible for long.
The stock market is made up of exchanges, like the New York Stock
Exchange and the Nasdaq. Stocks are listed on a specific exchange, which brings
buyers and sellers together and acts as a market for the shares of those stocks. The
exchange tracks the supply and demand and directly related , the price of each
stock. Individual traders are typically represented by brokers these days, that’s
often an online broker. You place your stock trades through the broker, which
then deals with the exchange on your behalf.
The study of stock market and money market was done in National
Institution of Securities Markets, Patalganga industrial area,Mophada,Khalapur
district Raigad,Maharashtra -410222. The duration of the study was 28 days.The
objective of the study is as follows:-
•To provide a good knowledge of securities markets domain, key concepts and
terminologies
•To provide a comprehensive coverage of product, process and functionality
related to securities markets.  
•To impart technical and managerial skills
•To provide legal formations of capital markets
•To train in a simulated Finance Lab with dynamic trading, strategies
Chapter 2
Indian Securities Market Overview

2.1 INTRODUCTION
The monetary instruments in money related systems are advancing
and they are the key players in the Indian capital markets. The Indian
organizations have truly improved a great deal and with the progression of time
they have recorded themselves abroad on Singapore trade, London Stock
Exchange, AIM. These instruments have truly helped Indian organizations to
secure the bigger worldwide profiles like Aditya Birla Group obtaining Novelis
Inc and the Columbian Chemicals Company.
In India the organizations are generally dependable on the non banking
subsidizing sources which incorporates capital markets, inside age of assets and
outside business borrowings. In the time of 2010 among Asian nations India rank
after Japan and China in the value share issuances. India positions second after
United States in the conditions of number of recorded organizations which has the
security market and this incorporates the volume of exchanges moreover.
The budgetary markets and organizations have experienced critical changes keeping
pace with the changing needs of market members. Close by the ascent of private account, the
money related markets are seeing an upgraded job of National Governments through
Sovereign Wealth Funds. Investment assets and mutual funds have added new measurement
to the market elements. India has not stayed immaculate by these improvements around the
world. With its developing and progressively complex market-arranged economy and
expanding reconciliation with worldwide exchange and money, India's monetary framework
has additionally enhanced.

2.2 EVOLUTION OF INDIAN SECURITIES MARKET

Though the historical records relating to securities market in India is meagre and obscure,
there is evidence to indicate that the loan securities of the East Indian Company used to be
traded towards close of the 18th century. By 1830’s, the trading in shares of banks started. The
trader by the name of broker emerged in 1830 when 6 persons called themselves as share
brokers. This number grew gradually. Till 1850, they traded in shares of banks and securities
of the East India Company in Mumbai under a sprawling Banyan Tree in front of the Town
Hall, which is now in the Horniman Circle Park. It is no surprise that the majestic Phiroze
Jeejeebhoy Towers is located at the Horniman Circle. In 1850, the Companies Act
introducing limited liability was enacted heralding the era of modern joint stock company
which propelled trading volumes.
The depression was so severe that it paved way for setting up of a formal market. The
number of brokers, which had increased during the civil war to about 250, declined. During
the civil war, they had become so influential and powerful that even the police had
only salams for them. But after the end of the civil war, they were driven from pillar to post
by the police. They moved from place to place till 1874 when they found a convenient place,
which is now appropriately called Dalal street after their name. They organized an informal
association on or about 9th July 1875 for protecting their interests. On 3rd December 1887,
they established a stock exchange called ‘Native Share and Stock Brokers Association’. This
laid the foundation of the oldest stock exchange in India. The word ‘native’ indicated that
only natives of India could be brokers of the Exchange.

2.3 TYPES OF MARKETS – PRIMARY AND SECONDARY MARKETS

Fig 1-types of market

Primary Market:-
In primary markets, securities are bought by way of public issues directly from the company.
The primary is a middlemen. New issue are available in the primary market .
New issues of common stocks ,bonds and preferred stock are sold by companies .

Secondary Market:-
In secondary market share are traded between two investors .The secondary market are
broker and dealer .Securities usually bought and sold through the secondary market. The
secondary market stock and bonds issues are sold to the public.
 BASIS FOR
PRIMARY MARKET SECONDARY MARKET
COMPARISON

Meaning The market place for new shares is The place where formerly
called primary market. issued securities are traded is
known as Secondary Market.

Another name New Issue Market (NIM) After Market

Type of Purchasing Direct Indirect

Financing It supplies funds to budding It does not provide funding to

enterprises and also to existing companies.
companies for expansion and
diversification.

How many times a Only once Multiple times

security can be sold?

Buying and Selling Company and Investors Investors

between

Who will gain the Company Investors

amount on the sale of
shares?

Intermediary Underwriters Brokers

Price Fixed price Fluctuates, depends on the

demand and supply force

Organizational Not rooted to any specific spot or It has physical existence.

difference geographical location.

Fig 2- comparison chart

2.4 FINANCIAL INTERMEDIARIES

Financial intermediaries work in the savings/investment cycle of an economy by serving as
conduits to finance between the borrowers and the lenders. 

Fig 3 – Investment cycle

Recent trends

Recent trends in the evolution of financial intermediaries, particularly in the developing

world have shown that these institutions have a pivotal role to play in the elimination of
poverty and other debt reduction programs. Some of the initiatives like micro-credit reaching
out to the masses have increased the economic well-being of hitherto neglected sector

Further, the financial intermediaries like banks are now evolving into umbrella institutions
that cater to the complete needs of investors and borrowers alike and are s of the population.
maturing into “financial hyper marts”.

Types of intermediaries
 Banks
 Mutual savings bank
 Credit unions
 Brokers
 Insurance companies
 Collective investment schemes
 Pension funds
 Cooperative societies
 Stock exchanges
Chapter 3

ORGANISATIONAL PROFILE- NISM AND SEBI

About NISM

When it started: Established in 2006

Who started it: SEBI
Where it was started: Patalganga industrial area, Mophada,
Khalapur distract Raigad,
Maharashtra
Branches
The Six Schools of Excellence:

1. School for Securities Education (SSE)

2. School for Certification of Intermediaries (SCI)

3. School for Regulatory Studies and Supervision (SRSS)

4. School for Investor Education and Financial Literacy (SIEFL)

5. School for Corporate Governance (SCG)

6. School for Securities Information and Research (SSIR)

FACULTY
Director
Dr. M. Thenmozhi
Registrar
Mr. G. P. Garg
Teaching faculty
Prof. Sunder Ram Korivi, Dean, SSE & SSIR
Dr. Latha Chari, Professor
Dr. Akhlaque Ahmad, Associate Professor
Mr. Jitendra Kumar, Faculty Member, SRSS
Mr. Vishal Shukla, Faculty Member, SRSS
Mr. M Krishnamoorthy, Member of Faculty, NISM
Mr.Jainendra Shandilya, Faculty Member, SRSS
 Mr. Ritesh Nandwani, Faculty Member, (SSE)
Mr. Sunku Venugopal, Faculty Member, (SS)
Dr. Abhay Nagale, Faculty Member
Dr. Narasimhulu Siddula, Faculty Member
Dr. Rajesh Kumar, Faculty Member
Mr. Suneel Sarswat, Faculty Member
Mr.Pradiptarathi Panda, Lecturer
Mr.Merajuddin Inamdar, Lecturer
Senior Management
\Mr. K Sukumaran, Dean, NISM 
Mr. Paritosh Sharma, Senior Advisor
Mr. Narayana Maddala, Senior Vice President, ICT
Dr. Nitin Tike, Senior Vice President - Certification, Test and CPE Administration &
E-Learning Department
Mr. Jitender Aggarwal, Senior Vice-President (Estates)
Mr. A.S. Ramayya, Vice President, Legal and Compliance, GSD
Mr. A V Sankar, Vice President ( HR, Finance & Accounts)

COURSES OFFERED

Two-year full-time programmes Post Graduate Programme in Securities Markets (PGPSM)

Post Graduate Diploma in Quantitative Finance (PGDQF) Part-time & executive programmes
Post Graduate Diploma in Financial Engineering and Risk Management (PGDFERM) Post
Graduate Diploma in Data Science (PGDDS) Certificate in Securities Law (CSL) Programme
Certificate in Treasury Management (CTM) Post Graduate Diploma in Management
(Securities Markets) PGDM(SM)
Certification Examinations SEBI mandated and aspirational examinations Continuing
Professional Education Programmes Training programmes for market participants Joint
Certification Programmes With educational institutions Corporate Solutions For Corporates
and Intermediaries
FACILITIES IN THE CAMPUS
Market regulator Sebi is setting up a plush campus on a 70-acre piece of land near Mumbai,
capable of housing over 5,000 people, to train students and financial intermediaries in market
mechanics, laws and rules. The campus, coming up at Patalganga in Raigad district, about
80km from Mumbai, is being developed by the National Institute for Securities Markets
(NISM), Sebi's academic and training arm.
This campus also provides-
Sports Facilities like,
Badminton, Table tennis and much more.
They also provide Full time access of Library.

SWOT ANALYISIS
Strength-
 In dept knowledge in capital marketing.
 The only institution to provide this course.
Weakness-
 Location
 Lack of publicity.

Opportunity-
 Acquiring the chance to become a knowledgeable trader.
 Have a wide set of opportunities to take up in capital marketing.
Threat-
 Technical setup/ lack of technical assistance.

ELIGIBILITY CRITERIA
A)   Eligibility Criteria for NISM Investment Advisor (Level 1) CPE

General category

Any person holding any of the following Certificates

(a)    NISM Series X-A: Investment Advisor (Level 1) Certification Examination

(b)   NISM Series X-A: Investment Advisor (Level 1) Continuing Professional Education

(c)    NISM Certified Personal Financial Advisor Examination

and where the validity of such Certificate has not expired may attend NISM Series X-A:
Investment Advisor (Level 1) CPE Program, on submission of the Required Documents (as
mentioned in (B)).

Note: Candidates can attend the CPE Program not before twelve months prior to expiry of the
said Certificate

Principal Category
Any person who is actively engaged in the management of a SEBI registered an investment
adviser and partners and representatives of investment advisers under SEBI (Investment
Advisers) Regulations, 2013 and offering investment advisory services, that is a Proprietor /
Sole Proprietor / Partner / Managing Partner / Chairman / Director / Executive Director /
Whole Time Director / Chief Executive Officer and performs the functions of an Investment
adviser, may attend NISM Series X-B: Investment Advisor (Level II) CPE Program under the
‘Principal’ Category, on submission of the Required Documents(as mentioned in (B)).

Note: A person holding any of the Certificates, mentioned earlier, belongs to the ‘General’
Category irrespective of his/her designation.

Grandfathered by Age Category

Any associated person, other than Principal, who has completed the age of 50 years as
on June 19, 2013, may attend NISM Series X-A: Investment Advisor (Level 1) CPE Program
under the ‘Grandfather by Age’ Category, on submission of the Required Document.

Note: A person holding any of the Certificates, mentioned earlier, belongs to the ‘General’
Category irrespective of his/her age

(B)   Required Documents for NISM Series X-A: Investment Advisor (Level 1) CPE

The following Documents need to be verified at the CPE venue for attending the Investment
Advisor (Level 1) CPE Program:

General Category

1. Copy of PAN Card

2. Copy of valid Certificate (any of the above mentioned)

Principal Category

1. Copy of PAN Card

2. Proof of Designation 

3. Copy of Certificate of Registration of the Intermediary

Grandfathered by Age Category

1. Copy of PAN Card

Please note that Candidates are required to carry in original the above-mentioned

Documents (under respective Categories) to the CPE venue for verification in order to obtain
admission to NISM Series X-A: Investment Advisor (Level 1) CPE Program.
ABOUT SEBI
The SEBI, that is, the Securities and the Exchange Board of India, is the national
administrative body for the protections showcase, set up under the protections and Exchange
Board of India Act, 1992, to ensure the enthusiasm of financial specialists in protections and
to advance the improvement of, and to direct the protections advertise and for issues
associated therewith and coincidental as well.

According to the SEBI demonstration, 1992, the power and elements of the Board
include the guideline of Stock Exchanges and different protections markets; enlistment and
guideline of the working stock representatives, sub-agents, brokers to an issue (an open idea
of capital), trustees of trust deeds, recorders to an issues, shipper financiers, under scholars,
portfolio supervisors, speculation consultants and such different go-betweens who might be
related with the financial exchange in any capacity; enrollment and guidelines of common
assets; advancement and guideline of self-administrative associations; precluding Fraudulent
and out of line exchange practices and insider exchanging protections markets; controlling
considerable procurement of offers and takeover of organizations; calling for data from,
undertaking assessment, leading request and reviews of stock trades, middle people and self-
administrative associations of the protections advertise; performing such capacities and
practicing such powers as contained in the arrangements of the Capital Issues(Control)
Act,1947 and the Securities Contracts (Regulation) Act, 1956, imposing different expenses
and different charges, directing vital research for above purposes and performing such
different capacities as might be recommends now and again.

SEBI as the guard dog of the business has a significant and vital job in the market in
guaranteeing that the market members play out their obligations as per the administrative
standards. The Stock Exchange as a dependable Self Regulatory Organization (SRO)
capacities to direct the market and its costs according to the pervasive guidelines. SEBI
assume complimentary jobs to upgrade the financial specialist security and the general nature
of the market

Objective of SEBI
• To regulate the securities market and ensure fair practices.

• To protect the interest of investors , so that there is a steady flow of savings into to the
capital market
Functions of SEBI
1. Regulatory function:-
• Regulation of stock exchanges and self regulatory organizations.

• Regulating substantial acquisition of shares and takeovers of the company.

2. Development functions:-
• Promoting investors education.

• Promoting of fair practices.

• Training of intermediaries.
Powers OF SEBI
• Powers to call periodical returns from recognized stock exchanges.

• Power to compel listing of securities by public companies.

• Power to control and regulate stock exchanges.

• Power to grant approval to by laws of recognized stock exchanges or their members.

• Power to call information or explanation from recognized stock exchange or their

members

Mission of SEBI
Securities & Exchange Board of India (SEBI) formed under the SEBI Act, 1992 with the
prime objective of :

• Protecting the interests of investors in securities,

• Promoting the development of, and
• Regulating, the securities market and for matters connected therewith or incidental
thereto. Focus being the greater investor protection, SEBI has become a vigilant
watchdog

Role of SEBI in the Capital Market

1.Power to make rules for controlling stock trades.
SEBI has capacity to make new guidelines for controlling stock trade in India

For instance ,SEBI fixed the season of exchanging 9AM and 5PM financial exchange.
2.To give permit to vendors and intermediaries.
SEBI has capacity to give permit to vendors and intermediaries of capital market.If SEBI sees
that any budgetary item is of capital nature,then SEBI can likewise control to that item and its
dealers.One of primary model is UPIL'S case SEBI said ,"It is much the same as shared
reserve and all banks and money related and insurance agencies who need issue it,must take
consent from SEBI."

3.To stop misrepresentation in capital market

SEBI has numerous forces for halting extortion in capital market,It can prohibition on the
exchanging of those dealers who are engaged with false and unreasonable exchange works on
identifying with financial exchange .It can force hee punishments on capital market middle
people on the off chance that they include in insider exchanging .

4.To control the merger,acquisition and takeover the organizations.

Numerous huge organizations in India need to make syndication in capital market.So, these
organizations purchase every single other organization or arrangement of merging.SEBI sees
whether this union or procurement is for improvement of business or to hurt capital market .

5.To review the presentation of financial exchange

SEBI utilizes his forces to review the presentation of various Indian stock trades for acquiring
straightforwardness the working of stock trades.

6.To make new guidelines on convey forward exchanges.

Offer exchanging exchanges convey forward can not surpass 25% of representatives absolute
exchanges. 90days point of confinement for convey forward.

7.To make association with ICAI.

ICAI is the expert for making new examiners of organizations .SEBI makes great association
with ICAI for acquiring more straightforwardness the reviewing work for organization
accounts in light of the fact that inspected fiscal summaries are mirror to see the genuine
essence of organization and after his speculators can choose to contribute or not to
contribute . In addition, speculators of India can without much of a stretch trust on evaluated
money related reports. After Satyam Scam , SEBI is contributing with ICAI ,regardless of
whether CAs are carrying out their responsibility by moral way or not.

8.Introduction of subordinates contracts on unpredictability record

For decreasing the danger of investors,SEBI has now been chosen to allow stock trades to
present subordinate contracts on instability index,subject to the condtion that :-

(a) The fundamental unpredictability file has the reputation of in any event one yea r. The
trade has set up the fitting danger the board structure for such subordinate contracts.

(b)Before presentation of such gets ,the stock trades will present the accompanying:-

• Contract Specifications

• Position and Exercise Limits

• Margins

• The financial reason it is proposed to serve

• Likely commitment to advertise improvement

• The shields and the hazard security system embraced by the trade to guarantee advertise
respectability ,assurance of financial specialists and smooth and precise exchanging.

• Details of settlements methodology and frameworks

• Details of back testing of the edge counts for a time of one year considering a call and a put
choice on the hidden with a delta of 0.25 and - 0.25 separately and real estimation of the basic
.

9 . To require report of portfolio the executives exercises.

SEBI has likewise capacity to require report of portfolio the board to check the capital market
execution . As of late , SEBI sent the letter to all Registered Portfolio Managers of India for
requesting report.

10.To teach the speculators

Time to time, SEBI orchestrates planned workshops to instruct the financial specialists. On
22 may 2010 SEBI forced workshop.
ABOUT BSE AND NSE

Fig 4 - BSE and NSE market watch

BSE
The Bombay stock trade is an Indian stock trade . It was built up in 1875, the BSE is Asia's
first stock trade.

VISION OF BSE
The vision of BSE is to be looked for in the wake of learning supplier on the planet in regions
of budgetary and authority learning, by spearheading the age and dispersal of information for
the improvement of aptitudes and capacities of experts and yearning experts.

MISSION OF BSE
As a focal point of learning ,our central goal is to advance an open learning condition that
unites individuals ,culture and thoughts from around the globe ,changing lives and changing
associations through inventive learning programs. Index of BSE are sensex .

NSE
The NSE is a main stock trade of India, situated in Mumbai.

The NSE was built up in 1992 as a first demutualized electronic trade in the nation. NSE was
the principal trade in the nation to give an advanced ,completely computerized screen-based
electronic exchanging framework which offered simple exchanging office to the financial
specialists spread over the length and expansiveness of the nation .

PURPOSE
 Setting up a national wide exchanging office for all sort of protections.
 Empowering shorter settlement cycles.
  Guaranteeing equivalent access to financial specialist everywhere
throughout the nation through a suitable correspondence organize .
 Accommodating a reasonable , productive and straightforward protections
market utilizing electronic exchanging framework
 Meeting up with universal benchmark and standard .

MARKETS
• Equity

• Mutual funds

• Retail debt market

• Wholesale debt market

TRADING MECHANISM
There is an open electronic book which helps in the trading of securities which is done by
trading computer. There are no market makers and this entire process is done by order-driven.
The buyers and sellers in trading mechanism remains anonymous and this leads to
transparency which is done by displaying all the buying and selling orders in the trading
system.

SETTLEMENT CYCLE AND MARKET INDEXES

There is T+2 rolling settlement which is followed by equity spot markets. It means that if any
trade is taking place on Monday it will get settled on Wednesday and Exchange takes place
between 9:55 am to 3:30 pm (IST), Monday to Friday. Sensex and Nifty are the two
prominent intern market indexes.

INTERNATIONAL OFFERINGS

The Indian companies are growing up buy getting the investments such as “such as
ADRs GDRs, FCCBs, and ECBs, Euro Issues, AIM [ listings, foreign currency exchangeable
bonds and other such new and hybrid instruments”. There are 13 companies which are
already listed on NYSE whereas there are 66 Indian focused companies which are on London
Stock Exchange.
RESERVE BANK OF INDIA

The RBI has given power for issuing of licences to the commercial bank to open branches
and this has been stated under Banking Regulation Act, 1949. RBI has the power to control
and manage every Bank. In the year 1994, a board for financial supervision was constituted
which was comprised of selected members of RBI board and included a variety of
professionals for exercising “undivided attention to supervision”.

Careers in capital markets

 Commercial Banking
o Credit Analysis
o Compliance
 Real Estate
o Portfolio Management
o Risk Management
 Insurance
o Actuary
o Underwriting
 Government Contracting
o Government Contract Analysis
o Government Acquisition

DERIVATIVES

A derivative is a contract between two parties which derives its value/price from an
underlying asset. Ex: commodities, currency, bonds, stocks, stocks indices, etc.
TYPES OF DERIVATIVES

The most common types of derivatives are:

Fig 5 - Types of Derivatives

1. FORWARD CONTRACT

A forward contract is a redone contract between two gatherings to purchase or sell an

advantage at a predetermined cost on a future date. A forward contract can be utilized for
supporting or theory, despite the fact that its non-institutionalized nature makes it especially
well-suited for supporting .

Fig 6- Forward Contract

2. OPTION CONTRACT

A option contract is an understanding between two gatherings to encourage a potential

exchange on the underlying security at a preset value, alluded to as the strike cost, before the
lapse date.

Fig 7 – Option Contract

There are two types of contracts in option contract .They are:-

a. call option

b.put option

a. Call Option

Call option are understandings that give the choice purchaser the right, however not the
commitment, to purchase a stock, bond, commodity or other instrument at a predefined cost
inside a particular timespan.

b. Put Option

A put option is a choice contract giving the proprietor the right, however not the
commitment, to sell a predefined measure of an underlying security at a predetermined cost
inside a predefined time frame.
3. FUTURE CONTRACT

A future contract is a legitimate consent to purchase or sell a specific item   or resource at a

foreordained cost at a predetermined time later on. Fates contracts are institutionalized for
quality and quantity to encourage exchanging on a  future trade .

Fig 8- Future Contract

4.SWAP CONTRACT

A swap is a derivative contract through which two parties exchange the money streams or

liabilities from two distinctive monetary instruments. Most swaps include money streams
dependent on a notional chief sum, for example, a credit or security, despite the fact that the
instrument can be nearly anything.

Fig 9 – Swap Contract

CHAPTER 4

COMPANY PROFILE