A Project on

“Study of BSE and NASDAQ – A Comparision of Two Stock

Exchanges”

Submitted to RTM Nagpur University in partial fulfilment for the Award of

Bachelor of Business Administration in Financial Management for the
academic year 2021-22

Submitted by
Kshitij Gopalsingh Thakur
Guided by
Prof. Poorvi Tiwari
Professor, Dept of Management

Department of Management (BBA)

DADA RAMCHAND BAKHRU SINDHU MAHAVIDYALAYA

PANCHPAOLI, NAGPUR.
(SESSION 2021-2022)
 CERTIFICATE

This is to certify that Gaurav Udepurkar has submitted the project report titled
“A Comparative study between SBI & TATA Equity Mutual Funds” - Nagpur
Towards partial fulfillment of Bachelor of Business Administration degree examination.
This has not been submitted for any other examination and does not part of any other course
undergone by the candidate.
It is further certified that he has ingeniously completed his project as prescribed by
Rashtrasant Tukadoji Maharaj Nagpur University. Nagpur.

Ms. Poorvi Tiwari Prof. pranay Wankhede Dr. s.v. Kasbekar

(Project Guide) (HOD) (Principle)

Place:- NAGPUR
Date:-

Dada Ramchand Bakhru Sindhu Mahavidyalaya, Nagpur

Academic Year 2021-22

 INDEX

SR. NO. PARTICULARS PAGE NO.

1 Introduction
2 Company Profile
3 Research Study
• Problem Definition
• Objectives
• Hypothesis
• Theoretical Perspectives
4 Research Methodology
5 Data Analysis & Interpretation
6 Conclusions & Limitations
7 Recommendation & Suggestion
8 Bibliography
9 Appendices
 Chapter 1

Introduction to Financial Management

 INTRODUCTION

Financial management is such a managerial process which is concerned with the planning
and control of financial resources. Financial management was started as a separate subject of
study in the 20th century.
Till now it was used as a part of economics. As an educational subject, its scope has
undergone some basic changes from time to time.
In the initial years of its development, financial management was concerned only with
collection of funds for business. But according to the modern viewpoint, not only collection
of funds but also their proper utilisation are the basic functions of financial management. In
present times, financial management analyses all financial problems of a business.
Financial management refers to the functions involved in the management of financial
resources. These functions are fund procurement, working capital management, capital
budgeting, and capital structure designing of an organization.
It includes controlling and maintaining the financial assets of an organization. In addition, it
determines the future strategies related to expansion, diversification, joint venture, and
mergers and acquisitions.
Financial management may be defined as planning, organising, directing and controlling the
financial activities of an organisation. According to Guthman and Dougal, financial
management means, “The activity concerned with the planning, raising, controlling and
administering of funds used in the business.” It is concerned with the procurement and
utilisation of funds in the proper manner.

DEFINITION OF FINANCIAL MANAGEMENT

Financial management is an integral part of overall management. It is concerned with the
duties of the financial managers in the business firm. The term financial management has
been defined by
 o Howard & Upton―Financial management as an application of general managerial
principles to the area of financial decision-making.

o Weston and Brigham―Financial management is an area of financial decision-

making, harmonizing individual motives and enterprise goals.
o J. L. Massie―Financial management is the operational activity of a business that is
responsible for obtaining and effectively utilizing the funds necessary for efficient
operation

o  Solomon―Financial management is concerned with the efficient use of an

important economic resource, namely, capital funds.
Financial management is the operational activity of a business that is responsible for
obtaining and effectively utilizing the funds necessary for efficient operations. Thus,
Financial Management is mainly concerned with the effective funds management in the
business. In simple words, Financial Management as practiced by business firms can be
called as Corporation Finance or Business Finance

Fundamental analysis is an analytical method investors use to value companies based on a

study of corporate profitability and financial measures. One way to do this is to look at the
general, qualitative factors of a company – for example what industry or sector the company
is in, who are their competitors, and if they have a recognizable brand name. Another
approach to fundamental analysis considers tangible and measurable quantitative factors.
This means, for instance, crunching the numbers and closely analyzing financial statements
such as the balance sheet and income statement. When used in conjunction with other
methods, quantitative analysis can produce excellent results and give patient investors an
edge over time.
Ratio analysis is one way to make sense of these corporate data. Looking at ratios is more
involved than simply comparing different figures from the balance sheet, income statement
and cash flow statement. It requires relating these calculated ratios against previous years,
other companies, the industry the company is in, and even the economy at large. Ratios can
give you a glimpse into the relationships among and between individual values that relate to a
company’s operations and link them to how a company has performed in the past, and how it
might perform in the future. The result is a potentially robust method of valuing the shares of
a company. For example, a piece of data such as current assets, which appears on the balance
sheet, cannot by itself tell us a whole lot – but when we divide current assets by current
liabilities we get important information about a company – namely, whether it has enough
money to cover short-term debts. Then, compare one company’s assets-to-debts with another
in the same industry to determine if one is on more stable financial footing than the other. We
can also compare that figure against the industry average to see if a stock may outperform its
peers.
 Introduction to Stock Market

A stock market, equity market, or share market is the aggregation of buyers and sellers of
stocks (also called shares), which represent ownership claims on businesses; these may
include securities listed on a public stock exchange, as well as stock that is only traded
privately, such as shares of private companies which are sold to investors through equity
crowdfunding platforms. Investment is usually made with an investment in mind.

Stocks can be categorized by the country where the company is domiciled. For example,
Nestlé and Novartis are domiciled in Switzerland and traded on the SIX Swiss Exchange, so
they may be considered as part of the Swiss stock market, although the stocks may also be
traded on exchanges in other countries, for example, as American depositary receipts (ADRs)
on U.S. stock markets.
BACKGROUND
In 12th-century France, the courtiers de change were concerned with managing and
regulating the debts of agricultural communities on behalf of the banks. Because these men
also traded with debts, they could be called the first brokers. The Italian historian Lodovico
Guicciardini described how, in late 13th-century Bruges, commodity traders gathered
outdoors at a market square containing an inn owned by a family called Van der Beurze,
and in 1409 they became the "Brugse Beurse", institutionalizing what had been, until then,
an informal meeting. The idea quickly spread around Flanders and neighboring countries
and "Beurzen" soon opened in Ghent and Rotterdam. International traders, and specially the
Italian bankers, present in Bruges since the early 13th-century, took back the word in their
countries to define the place for stock market exchange: first the Italians , but soon also the
French (Bourse), the Germans , Russians , Czechs , Swedes , Danes and Norwegians . In
most languages the word coincides with that for money bag, dating back to the Latin bursa,
from which obviously also derives the name of the Van der Beurse family. In the middle of
the 13th century, Venetian bankers began to trade in government securities. In 1351 the
Venetian government outlawed spreading rumors intended to lower the price of government
funds. Bankers in Pisa, Verona, Genoa and Florence also began trading in government
securities during the 14th century. This was only possible because these were independent
city-states not ruled by a duke but a council of influential citizens. Italian companies were
also the first to issue shares. Companies in England and the Low Countries followed in the
16th century. Around this time, a joint stock company—one whose stock is owned jointly
by the shareholders—emerged and became important for colonization of what Europeans
called the "New World"
The Dutch East India Company (founded in 1602) was the first joint-stock company to get a
fixed capital stock and as a result, continuous trade in company stock occurred on the
Amsterdam Exchange. Soon thereafter, a lively trade in various derivatives, among which
options and repos, emerged on the Amsterdam market. Dutch traders also pioneered short
selling – a practice which was banned by the Dutch authorities as early as 1610.

Crowd gathering on Wall Street (New York City) after the 1929 crash, one of the worst
stock market crashes in history.
There are now stock markets in virtually every developed and most developing economies,
with the world's largest markets being in the United States, United Kingdom, Japan, India,
China, Canada, Germany (Frankfurt Stock Exchange), France, South Korea and the
Netherlands

CHAPTER 2
Company Profile
 COMPANY PROFILE

Established in 1875, BSE Ltd. (formerly known

as Bombay Stock Exchange Ltd.), is Asia’s
first Stock Exchange and one of India’s leading exchange groups and has played a
prominent role in developing the Indian capital market. BSE is a corporatized and
demutualised entity, with a broad shareholder-base which includes two leading global
exchanges, Deutsche Bourse and Singapore Exchange as strategic partners. BSE
provides an efficient and transparent market for trading in equity, debt instruments,
derivatives, mutual funds. It also has a platform for trading in equities of small-and-
medium enterprises (SME). BSE also provides a host of other services to capital market
participants including risk management, clearing, settlement, market data services and
education. It has a global reach with customers around the world and a nation-wide
presence. BSE systems and processes are designed to safeguard market integrity, drive
the growth of the Indian capital market and stimulate innovation and competition across
all market segments. It operates one of the most respected capital market educational
institutes in the country (the BSE Institute Ltd.). BSE also provides depository services
through its Central Depository Services Ltd. (CDSL) arm
BACKGROUND
Bombay Stock Exchange was started by Premchand Roychand in 1875. While BSE Limited
is now synonymous with Dalal Street, it was not always so. In the 1850s, five stock brokers
gathered together under a Banyan tree in front of Mumbai Town Hall, where Horniman
Circle is now situated.[9] A decade later, the brokers moved their location to another leafy
setting, this time under banyan trees at the junction of Meadows Street and what was then
called Esplanade Road, now Mahatma Gandhi Road. With a rapid increase in the number of
brokers, they had to shift places repeatedly. At last, in 1874, the brokers found a permanent
location, the one that they could call their own. The brokers group became an official
organization known as "The Native Share & Stock Brokers Association" in 1875.
The Bombay Stock Exchange continued to operate out of a building near the Town Hall
until 1928. The present site near Horniman Circle was acquired by the exchange in 1928,
and a building was constructed and occupied in 1930. The street on which the site is located
came to be called Dalal Street in Hindi (meaning "Broker Street") due to the location of the
exchange.
On 31 August 1957, the BSE became the first stock exchange to be recognized by the
Indian Government under the Securities Contracts Regulation Act. Construction of the
present building, the Phiroze Jeejeebhoy Towers at Dalal Street, Fort area, began in the late
1970s and was completed and occupied by the BSE in 1980. Initially named the BSE
Towers, the name of the building was changed soon after occupation, in memory of Sir
Phiroze Jamshedji Jeejeebhoy, chairman of the BSE since 1966, following his death.
In 1986, the BSE developed the S&P BSE SENSEX index, giving the BSE a means to
measure the overall performance of the exchange. In 2000, the BSE used this index to open
its derivatives market, trading S&P BSE SENSEX futures contracts. The development of
S&P BSE SENSEX options along with equity derivatives followed in 2001 and 2002,
expanding the BSE's trading platform.
On 12 March 1993, a car bomb exploded in the basement of the building during the 1993
Bombay bombings.
Historically an open outcry floor trading exchange, the Bombay Stock Exchange switched
to an electronic trading system developed by Cmc ltd. in 1995. It took the exchange only 50
days to make this transition. This automated, screen-based trading platform called BSE On-
Line Trading (BOLT) had a capacity of 8 million orders per day. Now BSE has raised
capital by issuing shares and as on 3 May 2017 the BSE share which is traded in NSE only
closed with ₹999.
The BSE is also a Partner Exchange of the United Nations Sustainable Stock Exchange
initiative, joining in September 2012.
BSE established India INX on 30 December 2016. India INX is the first international
exchange of India.
BSE launches commodity derivatives contract in gold and silver.