A

Project Report
On
“A study on capital market with the comparative

Analysis of 5 listed companies”

Submitted By
Mr. Khawale Abhishek Shivaji
[PGDM] Semester IV

In Partial Fulfilment for the Degree of

POST GRADUATE DIPLOMA IN MANAGEMENT STUDIES

Batch: 2020 – 22
Under the Guidance
Ms.Varsha Joshi
(Program Manager)

Plot No 12, Sector-22, Opp. Nerul Railway Station

Phase 2, Nerul West, Navi Mumbai, 400706

2022
 DECLARATION

This is to declare that I Khawale Abhishek Shivaji, student of Terna Global

Business School (TGBS), Nerul, PGDM (Sustainability Finance) batch 2020–
2022, has given original data and information to the best of my knowledge in the
project report titled “A study on capital market with the comparative

Analysis of 5 listed companies” is record of independent work carried out by

me under the guidance and supervision of the Ms. Varsha Joshi
towards the partial fulfillment of requirement for the PGDM degree course
under AICTE.

I also agree in principal not to share the vital information with any other
person outside the organization and that I have not submitted it for any award or
any other title, degree of diploma.

Date: 8th July 2022 Name: Khawale Abhishek Shivaji

Roll No.: 17
Specialization: Sustainability Mgt. Finance
Place: Navi Mumbai
 CERTIFICATE

This is to certify that the project entitled “A study on capital market with the comparative
Analysis of 5 listed companies”, submitted to Terna Global Business School, Navi Mumbai in
the partial fulfillment of the requirements for the award of the degree of POST GRADUATE
DIPLOMA IN MANAGEMENT STUDIES embodies the results of bonafide project wok
carried Ms. Varsha Joshi under my out by guidance and supervision.

To the best of my knowledge the results embodied in this project have not been submitted to any
other university of institute for the award of Degree or Diploma. The assistance and help
received during the course of this investigation has been duly acknowledged.

Project Guide: Ms. Varsha Joshi Director

Date: 8/7/2022
Place: Navi Mumbai
 TABLE OF CONTENTS

Sr.No. Topic Page No.

1. EXECUTIVE SUMMARY 5
2. INTRODUCTION TO THE TOPIC 7
3. PROJECT DETAILS 10
4. ROLE OF CAPITAL MARKET 28
5. FACTORS AFFECTING CAPITAL MARKETIN INDIA 30

6. CAPITAL MARKET EFFICIENCY 33

7. COMPARATIVE ANALYSIS OF 5 LISTED 35
BANKING COMPANIES
8. DATA ANALYSIS AND INTERPRETATION 47
9. FINDING 55
10. CONCLUSION 57
11. BIBLIOGRAPHY 59
12. ANNEXURE 61

4
 CHAPTER 1:
EXECUTIVE SUMMARY

5
 1. EXECUTIVE SUMMARY

From the early 1980s onwards, there has been a shift in India’s economic policy regime,
from government control over the allocation of resources, towards a greater role for the markets.
One major aspect of these reforms has been the development of financial markets for determining
the allocation of capital in the economy. Several reforms have been announced to promote the capital
market and protect investor interests. Reforms in the secondary market have focused on three main
areas- Structure and functioning of stock exchanges, automation of trading and post trade systems,
and the introduction of surveillance and monitoring systems.
In this view, this thesis aims to explore the extent of the development in Indian Capital Markets, the
extent of efficiency achieved in allocating the resources and the future course of action to fill in the
gaps whenever necessary. Capital market consists of corporate equity and long-term debt securities
(those maturing in more than one year).
A strong and smoothly functioning capital market ensures the smooth functioning of the flow
of funds mechanism from the savers to the investors, and the maximization of growth of the
economy. The Indian capital market faces many challenges in promoting efficient allocation and
mobilization of capital in the economy. Market infrastructure has to be improved as it hinders the
efficient flow of information and effective corporate governance. Market information is a crucial
public good that needs to be disclosed or made available to all participants to achieve market
efficiency.
There is a need to implement these reform measures as soon as possible. Indian economy is
going through a healthy phase of “feel good factor”, with growth in the foreign exchange reserves
at a comfortable level. The growth in the real sector is complementary with the growth in the
financial sector and it is essential to ensure that financial markets of the economy are functioning in
the best possible manner. The time has come for the Indian economy to embark upon a major
program for financial sector development, which will boost the growth in the real sector and help in
achieving the targets such as poverty alleviation, employment creation and high standards of living.
This will be achieved by making the most efficient use of finance through a well-developed financial
system.
A good capital market is an essential pre-requisite for industrial and commercial
development of a country. Credit is generally, required and supplied on short-term and long term
basis. The long term capital needs are met by the capital market. Capital market is a central
coordinating and directing mechanism for free and balanced flow of financial resource into the
economic system operating in a country. The development of a good capital market in a country is
dependent upon the availability of savings, proper organisation of its constituent units and the
entrepreneurship qualities of its people.

6
 CHAPTER 2:
INTRODUCTION TO THE TOPIC

7
 2. INTRODUCTION TO THE TOPIC

What is capital market?

Capital market is a place where buyers and sellers indulge in trade (buying/selling) of
financial securities like bonds, stocks, etc. The trading is undertaken by participants such as
individuals and institutions.
Capital market trades mostly in long-term securities. The magnitude of a nation’s capital markets is
directly interconnected to the size of its economy which means that ripples in one corner can cause
major waves somewhere else.

A capital market is a market for medium and long term funds. It includes all organisations,
institutions and instruments that provide long term and medium term funds. It does not include the
instruments or institutions which provides finance for short period (upto one year). The common
instrument used in capital market are shares, debentures, bonds, funds, public deposits etc.

Definition:

According to V.K. Bhalla “Capital market can be defined as the mechanism which
channelizes savings into investment or productive use. Capital market allocate the resources
amongst alternative uses. It intermediates flow of savings of those who save a part of their income
from those who wants to invest it in productive assets”.
Objectives:
• Ensures best possible coordination and balance between the flow of savings on the one hand and
the flow of investment leading to capital formation on the other;
• Direct the flow of saving into most profitable channels and thereby ensure optimum 5 obilizatio
of financial resources.
• The 5 obilization or concentration of national savings for economic development.
• The 5 obilization and import of foreign capital and investment to augment the deficit in the required
financial resources so as maintain the expected rate of economic growth.

8
Nature of Capital Market
• Link between Savers and Investment Opportunities.
• Deals in long term investment.
• Utilizes intermediaries.
• Determinant of capital formation.
• Government rules and regulations.

Types of Capital Market

Capital market consists of two types i.e. Primary and Secondary.

Primary Market:

Primary market is the market for new shares or securities. A primary market is one in which
a company issues new securities in exchange for cash from an investor (buyer). It deals with trade
of new issues of stocks and other securities sold to the investors.

Secondary Market:

Secondary market deals with the exchange of prevailing or previously-issued securities

among investors. Once new securities have been sold in the primary market, an efficient manner
must exist for their resale. Secondary markets give investors the means to resell/ trade existing
securities. Another important division in the capital market is made on the basis of the nature of
security sold or bought, i.e. stock market and bond market.

9
 CHAPTER 3:
PROJECT DETAILS

10
 3. PROJECT DETAILS

Capital Market:
A capital market is a financial market in which long-term debt (over a year) or equity-
backed securities are bought and sold, in contrast to a money market.

Capital
Market

1. Primary 2. Secondary
Market Market
Where short-term debt is bought and sold. Capital markets channel the wealth of savers to
those who can put it to long- term productive use, such as companies or governments making long-
term investments. Financial regulators like Securities and Exchange Board of India (SEBI), Bank
of England (BoE) and the U.S. Securities and Exchange Commission (SEC) oversee capital markets
to protect investors against fraud, among other duties.

Types of Capital Market

Capital market consists of two types i.e. Primary and Secondary.

Primary Market:

Primary market is also known as new issue market. As in this market securities are sold for
the first time i.e. new securities are issued from the company. Primary market companies goes
directly to investor and utilises these funds for investment in building, plants and machinery etc.

The primary market does not includes finance in the form of loan from financial institution
because when loan is issued from financial institutions it implies converting private capital into
public capital and this process is called as going public.
The common securities issued in primary market are equity shares, debentures, bonds,
11
preference shares and other innovative securities.

Methods of floatation of securities in primary market

• Public issue through prospectus: Under this method company issue a prospectus to inform and
attract general public
• Offer for sale: Under this method new securities are offered to general public but not directly by
the company but by an intermediary who buys whole lot of securities from the company.
• Private placement: Under this method the securities are sold by the company to an intermediary
at fixed price and in second step intermediaries sell these securities not to general public but selected
clients at higher price.
• Right issue (for existing companies): This is the issue of new shares to existing shareholders. It
is called right issue because it is the pre-emptive right of shareholder that company must offer them
the new issue before subscribing to outsiders.
• e- IPO (electronic initial public offer): it is the new method of issuing securities through on line
system of stock exchange. in this company has to appoint registered brokers for the purpose of
accepting application and placing orders.

Secondary Market:

The secondary market is the market for the sale and purchase of previously issued or second
hand securities. In secondary market securities are not directly issued by the company to investors.
The securities are sold by existing investors to other investors.
In secondary market companies get on additional capital as securities are bought and sold
between investors only so directly there is no capital formation but secondary market indirectly
contributes in capital formation by providing liquidity to securities of the company.

STOCK EXCHANGE:

12
 The Securities Contract and Regulation Act defines a stock exchange as “An organisation or
body of individuals, whether incorporated or established for the purpose of assisting, regulating and
controlling of business in buying, selling and dealing in securities.”

Every stock exchange has a specific location. In India there is no doubt that these two are
primarily the two major stock exchanges in India, overall at present there are a total of seven
recognized stock exchanges in India, as per SEBI.

A stock exchange, securities exchange, or bourse, is an exchange where stockbrokers and

traders can buy and sell securities, such as shares of stock, bonds, and other financial instruments.
Stock exchanges may also provide facilities for the issue and redemption of such securities and
instruments and capital events including the payment of income and dividends. [citation needed]
Securities traded on a stock exchange include stock issued by listed companies, unit trusts,
derivatives, pooled investment products and bonds. Stock exchanges often function as "continuous
auction" markets with buyers and sellers consummating transactions via open outcry at a central
location such as the floor of the exchange or by using an electronic trading platform.

To be able to trade a security on a certain stock exchange, the security must be listed there.
Usually, there is a central location at least for record keeping, but trade is increasingly less linked to
a physical place, as modern markets use electronic communication networks, which give them
advantages of increased speed and reduced cost of transactions. Trade on an exchange is restricted
to brokers who are members of the exchange. In recent years, various other trading venues, such as
electronic communication networks, alternative trading systems and "dark pools" have taken much
of the trading activity away from traditional stock exchanges.

Initial public offerings of stocks and bonds to investors is done in the primary market and
subsequent trading is done in the secondary market. A stock exchange is often the most important
component of a stock market. Supply and demand in stock markets are driven by various factors
that, as in all free markets, affect the price of stocks (see stock valuation).
There is usually no obligation for stock to be issued through the stock exchange itself, nor
must stock be subsequently traded on an exchange. Such trading may be off exchange or over-the-
counter. This is the usual way that derivatives and bonds are traded. Increasingly, stock exchanges
are part of a global securities market. Stock exchanges also serve an economic function in providing
liquidity to shareholders in providing an efficient means of disposing of shares.

TYPE OF OPERATION IN STOCK EXCHANGE

• Brokers: A broker is a member of stock exchange. He buys and sells securities on behalf of
outsiders who are not the members. He charges brokerage or commission for his services.
• Jobbers: A jobber is a member of stock exchange. He buys and sells secur ties on his own behalf.
He is specialised in one type of security and he makes profits by selling the securities at a higher
price.
• Bulls: A bull is a speculator who expect rise in price. He buys securities with a view to selling
them in future at a higher price and making profit out of it.
• Bears: A bear is a speculator who expects fall in price. He sells securities which he does not
possess.
• Stag: A stag is also a speculator who applies for new securities in expectation that price will rise
by the time of allotment and he can sell them at premium.

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Bombay Stock Exchange [BSE]

Bombay Stock Exchange founded by Premchand Roychand. He was one of the most
influential businessmen in 19th-century Bombay. A man who made a fortune in the stockbroking
business and came to be known as the Cotton King, the Bullion King or just the Big Bull. He was
also the founder of the Native Share and Stock Brokers Association, an institution that is now known
as the BSE.

The Bombay Stock Exchange is the oldest exchange in Asia. Its history dates back to 1855,
when 22 stock brokers would gather under banyan trees in front of Mumbai's Town Hall. The
location of these meetings changed many times to accommodate an increasing number of brokers.
The group eventually moved to Dalal Street in 1874 and became an official organization known as
"The Native Share & Stock Brokers Association" in 1875.

On August 31, 1957, the BSE became the first stock exchange to be recognized by the Indian
Government under the Securities Contracts Regulation Act. In 1980, the exchange moved to the
Phiroze Jeejeebhoy Towers at Dalal Street, Fort area. In 1986, it 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.

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. The BSE has also introduced a centralized
exchange-based internet trading system, BSEWEBx.co.in to enable investors anywhere in the world
to trade on the BSE platform. Now BSE has raised capital by issuing shares and as on 3rd may 2017
the BSE share which is traded in NSE only closed with Rs.999. The BSE is also a Partner Exchange
of the United Nations Sustainable Stock Exchange initiative, joining in September 2012.

14
National Stock Exchange of India Ltd. [NSE]

The National Stock Exchange of India Limited (NSE) is the leading stock exchange of India,
located in Mumbai. The NSE was established in 1992 as the first demutualized electronic exchange
in the country. NSE was the first exchange in the country to provide a modern, fully automated
screen-based electronic trading system which offered easy trading facility to the investors spread
across the length and breadth of the country. Mr. Vikram Limaye is Managing Director & Chief
Executive Officer (MD & CEO) of NSE.

National Stock Exchange has a total market capitalization of more than US$1.41 trillion,
making it the world’s 12th-largest stock exchange as of March 2016. NSE's flagship index, the
NIFTY 50, the 51 stock index (50 companies with 51 securities inclusive of DVR), is used
extensively by investors in India and around the world as a barometer of the Indian capital markets.
However, only about 4% of the Indian economy / GDP is actually derived from the stock exchanges
in India.

NSE offers trading, clearing and settlement services in equity, equity derivatives, debt and
currency derivatives segments. It is the first exchange in India to introduce electronic trading facility
thus connecting together the investor base of the entire country. NSE has 2500 VSATs and 3000
leased lines spread over more than 2000 cities across India.

The exchange was incorporated in 1992 as a tax-paying company and was recognized as a
stock exchange in 1993 under the Securities Contracts (Regulation) Act, 1956, when P.
V.Narasimha Rao was the Prime Minister of India and Manmohan Singh was the Finance Minister.
NSE commenced operations in the Wholesale Debt Market (WDM) segment in June 1994. The
capital market (equities) segment of the NSE commenced operations in November 1994, while
operations in the derivatives segment commenced in June 2000.

Unlike countries like the United States where nearly 70% of the GDP is derived from larger
companies and the corporate sector, the corporate sector in India accounts for only 12- 14% of the
national GDP (as of October 2016). Of these only 7,800 companies are listed of which only 4000
trade on the stock exchanges at BSE and NSE. Hence the stocks trading at the BSE and NSE account
for only around 4% of the Indian economy, which derives most of its income related activity from
the so-called unorganized sector and households
15
Functions of Stock Exchange / Secondary Market

1. Economic Barometer: It is a reliable barometer to measure the economic condition of the

country. The rise or fall in the share prices indicates the boom or recession cycle of the economy
2. Pricing of Securities: The stock market helps to value the securities on the basis of demand and
supply factors.
3. Safety of Transactions: In stock market only the listed securities are traded and stock exchange
authorities include the companies names in the trade list only after verifying the soundness of
company.
4. Contributes to Economic Growth: In stock exchange securities of various companies are bought
and sold. This process of disinvestment and reinvestment helps to invest in most productive
investment proposal and this leads to capital
5. Spreading of Equity Cult: Stock exchange encourages people to invest in ownership securities
by regulating new issues, better trading practices and educating public about investment.

Regulatory Body:
SEBI (Securities and Exchange Board of India)

Securities and Exchange Board of India (SEBI) is a statutory regulatory body entrusted with
the responsibility to manage the New Delhi markets. It monitors and regulates the stock Exchange
and protects the interests of the investors by enforcing certain rules and Regulations. SEBI was
founded on April 12, 1992, under the SEBI Act; 1992.The objective of SEBI is to Make sure that
the New Delhi market works during a systematic manner and provide Investors with a transparent
environment for his or her investment. To put it simply, the first Reason for fixing SEBI was to stop
malpractices within the capital market of India and promote the event

of the capital markets.

Functions of SEBI: -
• The various functions of SEBI are :
• To protect the interests of investors in securities market
• To promote the development of securities market
• To regulate the business available exchanges and the other securities markets
• To register and regulate the working of stock broker , sub-brokers, share transfer agents, bankers
to an issue, trustees of trust deeds, registrars to an issue, merchant bankers, underwriters, portfolio
managers, investment advisers and such other intermediaries who may be associated with securities
markets in any manner
• To register and regulate the working of the depositories, participants, custodian of securities,
foreign institutional investors, credit rating agencies

16
What is shares

A Share is a single unit of Ownership in a company or financial asset. It is essentially an

exchangeable piece of value of a company which can fluctuate up or down, depending on several
different market factors. A share entitles the shareholder to an equal claim on profit and losses of
the company. Companies divide capital into shares as a means of raising capital shares are also
known as Shares.
The value of a share that a company issues depends on its face value. The capital of a
company divided by the total number of shares. A firm`s authorised capital refers to the maximum
amount in shares it is allowed to sell. When you buy a share of a Company, you became part – owner
of that firm.
People who own shares in a Company are called Shareholders or Stockholders. Shareholders
receive income from the shares they own on a routine basis they are called Dividend Payments.
Shares are exchanged through a Stockbroker who acts as the middle man or woman.

Types of shares
Equity shares :

An equity share, normally known as ordinary share is a part ownership where each member is a
fractional owner and initiates the maximum entrepreneurial liability related to a trading concern.
These types of shareholders in any organization possess the right to vote.

Features of Equity Shares Capital

• Equity share capital remains with the company. It is given back only when the company is closed
• Equity Shareholders possess voting rights and select the company’s management
• The dividend rate on the equity capital relies upon the obtainability of the surfeit capital. However,
there is no fixed rate of dividend on the equity capital.
Advantages of Equity Shares Capital
•Equity Shares does not create a sense of obligation and accountability to pay a rate of dividend that
17
is fixed.
• Equity Shares can be circulated even without establishing any extra charges over the assets of an
enterprise.
• It is a perpetual source of funding and the enterprise has to pay back; exceptional case
– under liquidation.
• Equity shareholders are the authentic owners of the enterprise who possess the voting rights.

Disadvantages of Equity Shares Capital

• The enterprise cannot take either the credit or an advantage if trading on equity when only equity
shares are issued.
• There is a risk or a liability over capitalization as equity capital cannot be reclaimed.
• The management can face hindrances by the equity shareholders by guidance and
.systematizing themselves.
• When the firm earns more profits, then, higher dividends have to be paid which leads to raising in
the value of the shares in the marketplace.

Preference shares :

Preference shares, more commonly referred to as preferred stock, are shares of a company's stock
with dividends that are paid out to shareholders before common stock dividends are issued. If the
company enters bankruptcy, preferred stockholders are entitled to be paid from company assets
before common stockholders.

18
Preference shares are a long-term source of finance for a company. They are neither completely
similar to equity nor equivalent to debt. The law treats them as shares but they have elements of
both equity shares and debt. For this reason, they are also called ‘hybrid financing instruments’.
These are also known as preferred stock, preferred shares, or only preferred in a different part of the
world. There are various types of preference shares used as a source of finance.

Advantages:
• Appeal to Cautious Investors: Preference shares can be easily sold to investors who prefer
reasonable safety of their capital and want a regular and fixed return on it.

• No Obligation for Dividends: A company is not bound to pay dividend on preference shares if its
profits in a particular year are insufficient. It can postpone the dividend in case of cumulative
preference shares also. No fixed burden is created on its finances.

• No Interference: Generally, preference shares do not carry voting rights. Therefore, a company
can raise capital without dilution of control. Equity shareholders retain exclusive control over the
company.

• Trading on Equity: The rate of dividend on preference shares is fixed. Therefore, with the rise in
its earnings, the company can provide the benefits of trading on equity to the equity shareholders.

• No Charge on Assets: Preference shares do not create any mortgage or charge on the assets of the
company. The company can keep its fixed assets free for raising loans in future.

• Flexibility: A company can issue redeemable preference shares for a fixed period. The capital can
be repaid when it is no longer required in business. There is no danger of over capitalization and the
19
capital structure remains elastic.

• Variety: Different types of preference shares can be issued depending on the needs of investors.
Participating preference shares or convertible preference shares may be issued to attract bold and
enterprising investors.

Disadvantages:
• Fixed Obligation: Dividend on preference shares has to be paid at a fixed rate and before any
dividend is paid on equity shares. The burden is greater in case of cumulative preference shares on
which accumulated arrears of dividend have to be paid.

• Limited Appeal: Bold investors do not like preference shares. Cautious and conservative investors
prefer debentures and government securities. In order to attract sufficient investors, a company may
have to offer a higher rate of dividend on preference shares.

• Low Return: When the earnings of the company are high, fixed dividend on preference shares
becomes unattractive. Preference shareholders generally do not have the right to participate in the
prosperity of the company.

• No Voting Rights: Preference shares generally do not carry voting rights. As a result, preference
shareholders are helpless and have no say in the management and control of the company.

• Fear of Redemption: The holders of redeemable preference shares might have contributed finance
when the company was badly in need of funds. But the company may refund their money whenever
the money market is favorable. Despite the fact that they stood by the company in its hour of need,
they are shown the door unceremoniously.

What is mutual funds?

A mutual fund is a company that brings together money from many people and invests it in
stocks, bonds or other assets. The combined holdings of stocks, bonds or other assets the fund owns
are known as its portfolio. Each investor in the fund owns shares, which represent a part of these
20
holdings.
A mutual fund is a type of financial vehicle made up of a pool of money collected from many
investors to invest in securities like stocks, bonds, money market instruments, and other assets.
Mutual funds are operated by professional money managers, who allocate the fund's assets and
attempt to produce capital gains or income for the fund's investors. A mutual fund's portfolio is
structured and maintained to match the investment objectives stated in its prospectus.
Mutual funds give small or individual investors access to professionally managed portfolios
of equities, bonds, and other securities. Each shareholder, therefore, participates proportionally in
the gains or losses of the fund. Mutual funds invest in a vast number of securities, and performance
is usually tracked as the change in the total market cap of the fund derived by the aggregating
performance of the underlying investments.
A mutual fund is a type of financial vehicle made up of a pool of money collected from many
investors to invest in securities like stocks, bonds, money market instruments, and other assets.

Types Of Mutual Funds

 Open ended :

Open-end fund is a collective investment scheme that can issue and redeem shares at any time. An
investor will generally purchase shares in the fund directly from the fund itself, rather than from the
existing shareholders.
An open-end fund is a diversified portfolio of pooled investor money that can issue an unlimited
number of shares. The fund sponsor sells shares directly to investors and redeems them as well.
These shares are priced daily based on their current Net Asset Value (NAV). Some mutual funds,
hedge funds, and exchange-traded funds (ETFs) are types of open-end funds.
 Equity linked: An Equity Linked Saving Scheme (ELSS) is an open-ended equity mutual
fund that invests primarily in equities and equity-related products. They are a special
category among mutual funds that qualify for tax deductions under Section 80C of the
Income Tax Act, 1961.

 Balanced: Balanced funds or Balanced Hybrid Funds are a type of hybrid fund. They are
open-ended balanced schemes investing in both equity and debt instruments. As per SEBI
regulations, these funds have to invest 40%-60% of assets in equity and 40-60% of the assets
in debt securities.

 Debt funds: Debt funds are mutual fund schemes which invest in fixed income generating
securities such as Commercial Papers (CP), Certificate of Deposit (CD), Corporate Bonds,
T-Bills, government securities and other money market instruments.

 Money market: A money market fund is an open-ended mutual fund that invests in short-
21
 term debt securities such as US Treasury bills and commercial paper. Money market funds
are managed with the goal of maintaining a highly stable asset value through liquid
investments, while paying income to investors in the form of dividends.

 Close ended :

A closed ended mutual fund scheme is where your investment is locked in for a specified period
of time. You can subscribe to close ended schemes only during the new fund offer period (NFO)
and redeem the units only after the lock in period or the tenure of the scheme is over.
A closed ended fund is an equity or debt fund in which the fund house issues a fixed number of units
at launch. Once the NFO (New Fund Offer) period ends, investors cannot purchase or redeem units
of a closed ended fund. These funds are launched via an NFO and subsequently traded in the market
like stock and have a fixed maturity period.
While the Net Asset Value of the fund determines its actual price, the traded price can be
above or below this value depending on the demand and supply of the units. In simple words, a
closed ended fund 'closes' after the launch period until maturity. This allows the fund manager a
greater degree of freedom to pursue the investment objectives of the fund.

 Capital protection: A mutual fund, categorized under closed-hybrid funds, oriented towards
protecting your capital from any market risk with balanced exposure to both equities and
debt is known as Capital Protection Fund. Their portfolio is largely inclined towards debt
securities.

 Fixed maturity: Fixed Maturity Plan (FMP) is a fixed tenure mutual fund scheme that invests
its corpus in debt instruments maturing in line with the tenure of the scheme. The tenure of
an FMP can vary between a few months to a few years.

22
  Interval funds:

The interval mutual funds which can be purchased or sold only during a predefined time
period. For example, every fifteen days or any other time period as specified by the fund house.
Although Interval Funds can invest in debt and equities, it usually invests in debt securities.
The fund house declarers these intervals where in the investors can buy/sell units. They are
similar to close ended funds where you cannot purchase/redeem units frequently.

Mutual Funds
Investment
Structure Others
Objective

Growth Funds
Open Ended Dividend Funds Tax Saving Funds
Close Ended Balanced Funds Special Funds
Interval Funds Hybrid Funds ETFs
Debt Funds Fund or Funds
Index Funds Thematic Funds
Gilt Fund Value
Funds

6 STEPS TO INVESTING IN MUTUAL FUNDS

23
A step-by-step guide
1: Decide between active and passive funds.
2: Determine expense ratios and other costs.
3: Consider the difference between stock- and bond-based mutual funds.
4: Find out minimum investment requirements.
5: Open a brokerage account.
6: Keep an eye on your mutual fund's performance after you buy it.

What is bond?

A bond is a fixed-income instrument that represents a loan made by an investor to a borrower

(typically corporate or governmental). A bond could be thought of as an I.O.U. between the lender
and borrower that includes the details of the loan and its payments. Bonds are used by companies,
municipalities, states, and sovereign governments to finance projects and operations. Owners of
bonds are debtholders, or creditors, of the issuer.
Bond details include the end date when the principal of the loan is due to be paid to the bond owner
and usually include the terms for variable or fixed interest payments made by the borrower.
A bond fund or debt fund is a fund that invests in bonds, or other debt securities. Bond funds
can be contrasted with stock funds and money funds. Bond funds typically pay periodic dividends
that include interest payments on the fund's underlying securities plus periodic realized capital
appreciation.

KEY TAKEAWAYS
 Bonds are units of corporate debt issued by companies and securitized as tradeable assets.
 A bond is referred to as a fixed-income instrument since bonds traditionally paid a fixed
interest rate (coupon) to debtholders. Variable or floating interest rates are also now quite
common.
 Bond prices are inversely correlated with interest rates: when rates go up, bond prices fall
and vice-versa.
 Bonds have maturity dates at which point the principal amount must be paid back in full or
risk default.

What is debentures?

24
 Debenture is used to issue the loan by government and companies. The loan is issued at the
fixed interest depending upon the reputation of the companies. When companies need to borrow
some money to expand themselves they take the help of debentures.
In corporate finance, a debenture is a medium- to long-term debt instrument used by large
companies to borrow money, at a fixed rate of interest. The legal term "debenture" originally referred
to a document that either creates a debt or acknowledge it, but in some countries the term is now
used interchangeably with bond, loan stock or note. A debenture is thus like a certificate of loan or
a loan bond evidencing the company's liability to pay a specified amount with interest. Although the
money raised by the debentures becomes a part of the company's capital structure, it does not
become share capital.[1] Senior debentures get paid before subordinate debentures, and there are
varying rates of risk and payoff for these categories.

Important features of Debentures

 Debentures are instruments of debt, which means that debenture holders become creditors
of the company

 They are a certificate of debt, with the date of redemption and amount of repayment
mentioned on it. This certificate is issued under the company seal and is known as a
Debenture Deed

 Debentures have a fixed rate of interest, and such interest amount is payable yearly or half-
yearly

 Debenture holders do not get any voting rights. This is because they are not instruments of
equity, so debenture holders are not owners of the company, only creditors

 The interest payable to these debenture holders is a charge against the profits of the company.
So these payments have to be made even in case of a loss.

Advantages of Debentures
 One of the biggest advantages of debentures is that the company can get its required funds
without diluting equity. Since debentures are a form of debt, the equity of the company
remains unchanged.
 Interest to be paid on debentures is a charge against profit for the company. But this also
means it is a tax-deductible expense and is useful while tax planning
 Debentures encourage long-term planning and funding. And compared to other forms of
25
 lending debentures tend to be cheaper.
 Debenture holders bear very little risk since the loan is secured and the interest is payable
even in the case of a loss to the company
 At times of inflation, debentures are the preferred instrument to raise funds since they have
a fixed rate of interest

Disadvantages of Debentures
 The interest payable to debenture holders is a financial burden for the company. It is payable
even in the event of a loss
 While issuing debentures help a company trade on equity, it also makes it to dependent on
debt. A skewed Debt-Equity Ratio is not good for the financial health of a company
 Redemption of debentures is a significant cash outflow for the company which can
imbalance its liquidity
 During a depression, when profits are declining, debentures can prove to be very expensive
due to their fixed interest rate

Types of Debentures
There are various types of debentures that a company can issue.
 Secured Debentures: These are debentures that are secured against an asset/assets of the
company. This means a charge is created on such an asset in case of default in repayment of
such debentures. So in case, the company does not have enough funds to repay such
debentures, the said asset will be sold to pay such a loan. The charge may be fixed, i.e.
against a specific assets/assets or floating, i.e. against all assets of the firm.

 Unsecured Debentures: These are not secured by any charge against the assets of the
company, neither fixed nor floating. Normally such kinds of debentures are not issued by
companies in India.

 Redeemable Debentures: These debentures are payable at the expiry of their term. Which
means at the end of a specified period they are payable, either in the lump sum or in
installments over a time period. Such debentures can be redeemable at par, premium or at a
discount.

 Irredeemable Debentures: Such debentures are perpetual in nature. There is no fixed date at
which they become payable. They are redeemable when the company goes into the
liquidation process. Or they can be redeemable after an unspecified long time interval.

 Fully Convertible Debentures: These shares can be converted to equity shares at the option
of the debenture holder. So if he wishes then after a specified time interval all his shares will
be converted to equity shares and he will become a shareholder.

 Partly Convertible Debentures: Here the holders of such debentures are given the option to
partially convert their debentures to shares. If he opts for the conversion, he will be both a
creditor and a shareholder of the company.
 Non-Convertible Debentures: As the name suggests such debentures do not have an option
to be converted to shares or any kind of equity. These debentures will remain so till their
maturity, no conversion will take place. These are the most common type of debentures.

26
27
 CHAPTER 4:
ROLE OF CAPITAL
MARKET

28
 4. ROLE OF CAPITAL MARKET

Capital market plays an extremely important role in promoting and sustaining the growth of an
economy. It is an important and efficient conduit to channel and mobilize funds to enterprises, and
provide an effective source of investment in the economy. It plays a critical role in mobilizing
savings for investment in productive assets, with a view to enhancing a country’s long-term growth
prospects. It thus acts as a major catalyst in transforming the economy into a more efficient,
innovative and competitive marketplace within the global arena.
In addition to resource allocation, capital markets also provide a medium for risk management by
allowing diversification of risk in the economy. A well-functioning capital market also tends to
improve information quality as it plays a major role in encouraging the adoption of stronger
corporate governance principles, thus supporting a trading environment, which is founded on
integrity.
Capital market has played a crucial role in supporting periods of technological progress and
economic development throughout history. Among other things, liquid markets make it possible to
obtain financing for capital-intensive projects with long gestation periods. This certainly held true
during the industrial revolution in the 18th century and continues to apply even as we have moved
towards the so-called “New Economy”.
The existence of deep and broad capital market is absolutely crucial and critical in spurring the
growth of our country. An essential imperative for India has been to develop its capital market to
provide alternative sources of funding for companies and in doing so, achieve more effective
mobilization of investors’ savings. Capital market also provides a valuable source of external
finance.
For a long time, the Indian market was considered too small to warrant much attention. However,
this view has changed rapidly as vast amounts of international investment have poured into our
markets over the last decade. The Indian market is no longer viewed as a static

universe but as a constantly evolving market providing attractive opportunities to the global
investing community.

Role and Function of Capital Market

• Capital Formation
• Avenue Provision of Investment
• Speed up Economic Growth and Development
• Mobilization of Savings
• Proper Regulation of Funds
• Service Provision
• Continuous Availability of Funds
29
 CHAPTER 5:
FACTORS AFFECTING CAPITAL MARKET
IN INDIA

30
 5. FACTORS AFFECTING CAPITAL MARKET IN INDIA

Supply and demand:

There are so many factors that affect the market. But if you strip all that is on the outside and look
at the most basic factor, it is simple: supply and demand. Like all commodities, an imbalance
between supply and demand will raise and lower the price of stock. If there is a sudden scarcity of
potatoes, and more and more people are lining up to buy them, the price of potatoes will immediately
skyrocket.
Similarly, if a company is doing well and everyone wants to buy shares of the same company, there
will be a shortage of shares, leading to the shooting up of the stock price of the company. And the
opposite happens if there are too many shares available, but no one wants to buy them. The stock
price will plummet in that case.

Company related factors:

It is obvious that if a company has public shares, then anything that is happening within the company
will directly affect the share price. So, if the company is on the rise, with successful product
launches, increased revenue, reduced debt, and more influx of investor capital, then the stock price
of the company is bound to increase, because everyone would want to buy shares of such a company
that is going from strength to strength.
However, if the company is incurring losses, having product failures, amassing debt, then a majority
of the shareholders would want to dump the shares of such a company, reducing the stock price.
Other factors that can make stock prices go up and down include changes in the management of the
company, and mergers and acquisitions.
Investor sentiment
The sentiments of the investors themselves can also influence stock market prices. How the stock
market performs has something to do with the way investors are putting in money. If investors are
taking greater risks and investing aggressively, then stock prices will go up. On the other hand, if
investors are more subdued, choosing safety over risk, then the stock prices will come down. There
are two factors in this aspect:

Bullish market:
A bullish market is one where the investor is much more confident while taking risks and invests in
a much more aggressive manner. When more people are investing confidently, the demand goes up,
leading to increased stock prices.

Bearish market:
A bearish market is one where the investor is more worried about risks and losing his or her
investment and therefore, invests with lesser confidence with safety in mind. This causes the
stagnation of the market and the stock price eventually comes down.
Interest rates
The goings on at the Reserve Bank of India directly affect stock prices. The RBI decides the interest
rates in India and they keep changing it at regular intervals to stabilise the Indian economy.
Naturally, a higher interest rate will mean that companies will have to pay more for loans, resulting
in lesser profits.
This will reduce stock prices. Inversely, lower interest rates mean that the company can now borrow
money from banks for much lesser costs, thus saving their money and making a higher profit. In this
case, the price of stock will go up.
31
Politics:
One of the most important factors affecting stock market in India is the political climate of the
country. If the political climate is dire, with the government appearing weak, risk of war, or if the
public sentiment regarding the current government is not good, the price of stock will go down.
Similarly, if the government appears strong, with good public support, the stock price will be
healthier. Also, if the government has good developmental policies, it will cause investors to invest
with better enthusiasm, while government with a weak developmental agenda could lead to a
decrease in stock prices.

Current events:
News and other current events also affect the stock market. Current events that affect the stock
market include any political turmoil, civil war or riots, or terrorist attacks. All these events are bound
to make stock prices go down drastically and affect the market volatility.

Natural calamities:
Calamities like earthquakes and floods drastically reduce the stock market price. This happens due
to many reasons, like destruction of property and other assets. This causes companies to incur heavy
losses which leads to falling of stock prices. Company sales are affected due to a breakdown of
manufacturing and transport of goods. Therefore, when natural disasters occur, stock prices are
bound to fall.

Exchange rates:
How the Indian rupee stands in relation to the dollar or other foreign currency is also one of the
factors affecting share prices in India. A strong rupee means that our economy is growing and this
will lead to higher stock prices. However, there are different repercussions for different people in
situations where the performance of our currency is concerned.
When the value of the rupee increases, prices of Indian commodities abroad go up, leading to lesser
demand, and exporters suffer, making their stock prices go down. At the same time, importers can
buy goods at lesser prices and their stock goes up. When the rupee weakens, exactly the opposite
happens, that is the stock prices of exporters go up, while those of importers go down.
Thus, investing in the stock market is something that can give the most returns compared to other
forms of investment. But it also carries with it significant risks. But, nobody can deny that if these
risks are calculated, then the yield will definitely match up to the risks. The above factors are some
that directly affect the stock market, and a keen eye in these factors will help you decide when to
buy shares or sell them. Timing is key when it comes to stock market investment.

32
 CHAPTER 6:
CAPITAL MARKET EFFICIENCY

33
 6. CAPITAL MARKET EFFICIENCY

An efficient capital market is a market where the share prices reflect new information accurately
and in real time.
Capital market efficiency is judged by its success in incorporating and inducting information,
generally about the basic value of securities, into the price of securities. This basic or fundamental
value of securities is the present value of the cash flows expected in the future by the person owning
the securities.
The fluctuation in the value of stocks encourage traders to trade in a competitive manner with the
objective of maximum profit. This results in price movements towards the current value of the cash
flows in the future. The information is very easily available at cheap rates because of the presence
of organized markets and various technological innovations. An efficient capital market
incorporates information quickly and accurately into the prices of securities.
In the weak-form efficient capital market, information about the history of previous returns and
prices are reflected fully in the security prices; the returns from stocks in this type of market are
unpredictable.
In the semi strong-form efficient market, the public information is completely reflected in security
prices; in this market, those traders who have non-public information access can earn excess profits.
In the strong-form efficient market, under no circumstances can investors earn excess profits
because all of the information is incorporated into the security prices.
The funds that are flowing in capital markets, from savers to the firms with the aim of financing
projects, must flow into the best and top valued projects and, therefore, informational efficiency is
of supreme importance. Stocks must be efficiently priced, because if the securities are priced
accurately, then those investors who do not have time for market analysis would feel confident about
making investments in the capital market.
Eugene Fama was one of the earliest to theorize capital market efficiency, but empirical tests of
capital market efficiency had begun even before that.

34
 CHAPTER 7:
COMPARATIVE ANALYSIS OF 5 LISTED
BANKING COMPANIES

35
 7. COMPARATIVE ANALYSIS OF 5 LISTED BANKING COMPANIES

1. STATE BANK OF INDIA [SBI]

State Bank of India is a Fortune 500 company. It is an Indian Multinational, Public Sector banking
and financial services statutory body headquartered in Mumbai. It is the largest and oldest bank in
India with over 200 years of history.

The equity shares of SBI are listed on the Bombay Stock Exchange, where it is a constituent of the
BSE SENSEX index, and the National Stock Exchange of India, where it is a constituent of the
CNX Nifty. Its Global Depository Receipts (GDRs) are listed on the London Stock Exchange.

Market cap : ₹4,42,928.47 Cr Current Price : 467 52W High / Low : 549/401

Stock P/E : 11.8 Book Value : 342 Dividend Yield : 1.52%

ROCE : 4.44% ROE : 12.2% Face Value : 1

Capital Adequacy Ratio – 13.74%

Net Interest Margin – 3.34%
Gross NPA – 4.77%
36
Net NPA – 1.5
CASA Ratio – 45.40%

Compounded sales growth

10 Years 7%
5 Years 5%
3 Years 5%
TTM 4%

Compounded Profit Growth

10 Years 9%
5 Years 160%
3 Years 154%
TTM 58%

Stock Price CAGR

10 Years 8%
5 Years 14%
3 Years 23%
1 Year 35%

37
2. HDFC Bank Ltd

HDFC Bank Limited is an Indian Development finance institution headquartered in Mumbai,

Maharashtra. HDFC Bank is India’s largest private sector bank by assets. It is the largest bank in
India by market capitalisation as of March 2020.The equity shares of HDFC Bank are listed on the
Bombay Stock Exchange and the National Stock Exchange of India. Its American depositary
receipts are listed on the NYSE and its global depository receipts (GDRs) are listed on the
Luxembourg Stock Exchange where two GDRs represent one Equity share in HDFC Bank.

38
Market cap : ₹ 7,67,712.57 Cr.. Current Price : 1354 52W High / Low : 1725/1272

Stock P/E : 19.8 Book Value : 445 Dividend Yield : 1.14%

ROCE : 5.83% ROE : 16.6% Face Value : 1

Capital Adequacy Ratio – 18.8%

Net Interest Margin – 4.2%
Gross NPA – 1.34%
Net NPA – 0.40%
CASA Ratio – 46.1%

Compounded sales growth

10 Years 22%
5 Years 15%
3 Years 15%
TTM 4%

Compounded Profit Growth

10 Years 23%
5 Years 20%
3 Years 20%
TTM 17%

Stock Price CAGR

10 Years 19%
5 Years 18%
3 Years 12%
1 Year -5%

39
3. ICICI BANK Ltd

ICICI Bank is a large private sector bank in India offering a diversified portfolio of financial
products and services to retail, SME and corporate customers. The Bank has an extensive network
of branches, ATMs and other touch-points.

Market cap: ₹ 5,16,588.73 Cr.. Current Price: 704 52W High / Low: 867/631

Stock P/E : 22.13 Book Value : 240.36 Dividend Yield : 0.67%

ROCE : 10.44% ROE : 12.56% Face Value : 2

Capital Adequacy Ratio – 19.51%

Net Interest Margin – 3.67%
40
Gross NPA – 4.38%
Net NPA – 0.63%
CASA Ratio – 41.8%

Compounded sales growth

10 Years 11%
5 Years 9%
3 Years 13%
TTM 5%

Compounded Profit Growth

10 Years 12%
5 Years 13%
3 Years 34%
TTM 51%

Stock Price CAGR

10 Years 17%
5 Years 25%
3 Years 31%
1 Year 31%

41
4. BANK OF BARODA

Bank of Baroda (BOB) is an Indian government owned banking and financial services company. It
is the third largest government owned bank in India, with 132 million customers, a total business of
US$218 billion, and a global presence of 100 overseas offices. Based on 2019 data, it is ranked 1145
on Forbes Global 2000 list.

Market cap : ₹ 58,384.68 Cr. Current Price : 112.90 52W High / Low : 112.70/64.35

Stock P/E : 13.13 Book Value : 150.04 Dividend Yield : 0%

ROCE : 6.27% ROE : 1.20% Face Value : 2

42
Capital Adequacy Ratio – 12.93%
Net Interest Margin – 2.87%
Gross NPA – 8.48%
Net NPA – 2.39%
CASA Ratio – 37.93%

Compounded sales growth

10 Years 13%
5 Years 10%
3 Years 17%
TTM -6%

Compounded Profit Growth

10 Years -12%
5 Years 18%
3 Years 39%
TTM 85%

Stock Price CAGR

10 Years -4%
5 Years -11%
3 Years -1%
1 Year 29%

43
5. KOTAK MAHINDRA BANK Ltd

Kotak Mahindra Bank Limited is an Indian private sector bank headquartered in Mumbai,
Maharashtra, India. It offers banking products and financial services for corporate and retail
customers in the areas of personal finance, investment banking, life insurance, and wealth
management. As of February 2021, it is the third largest Indian private sector bank by market
capitalization, with 1600 branches & 2519 ATMs.

Market cap : ₹ 3,55,403.18 Cr. Current Price : 1790.75 52W High / Low : 2253 / 1626

Stock P/E : 47.47 Book Value : 347.71 Dividend Yield : 0.05%

ROCE : 12.26% ROE : 12.47% Face Value : 5

Capital Adequacy Ratio – 23.4%

Net Interest Margin – 4.45%
Gross NPA – 3.25%
Net NPA – 1.21%
CASA Ratio – 60.4%

44
 Compounded sales growth
10 Years 19%
5 Years 10%
3 Years 9%
TTM -1%

Compounded Profit Growth

10 Years 20%
5 Years 24%
3 Years 17%
TTM 1%

Stock Price CAGR

10 Years 21%
5 Years 20%
3 Years 14%
1 Year -5%

PEER COMPARISON:
Sector: Banks [public and private]

Sr. Name CMP P/E Mar Cap ROCE ROE CASA

No.
1. State Bank 496.30 13.85 4,42,928.47 Cr. 6.49% 9.31% 45.5%
Of India
2. HDFC Bank 1384.60 21.88 7,67,712.57 Cr. 14.51% 16.61% 46.1%

3. ICICI Bank 743.3 22.13 5,16,588.73 Cr. 10.44% 12.56% 41.8%

4. Bank Of 112.9 13.13 58,384.68 Cr. 6.27% 1.20% 37.93%

Baroda
5. Kotak 1790.75 47.47 3,55,403.18 Cr. 12.26% 12.47% 60.4%
Mahindra
Bank

PE Ratio :- The price-to-earnings ratio (P/E ratio) is the ratio for valuing a company that
measures its current share price relative to its earnings per share.

ROCE :- Return on capital employed is a good baseline measure of a company's performance.

ROCE is a financial ratio that shows if a company is doing a good job of generating profits
from its capital.

45
 A high ROCE value indicates that a larger chunk of profits can be invested back into
the company for the benefit of shareholders. A high ROCE is a sign of a successful growth
company.

ROE :- Return on equity is a measure of financial performance calculated by dividing net

income by shareholders' equity. Because shareholders' equity is equal to a company's assets
minus its debt, ROE is considered the return on net assets.
The higher ROE percentage indicates a company is more effective at generating profit
from its existing assets.

CASA Ratio :- The CASA ratio indicates how much of a bank's total deposits are in both
current and savings accounts. The ratio can be calculated using the following formula: CASA
Ratio = CASA Deposits ÷ Total Deposits.
A higher CASA ratio means that the bank has a higher share of deposits in current and
savings accounts. A higher CASA ratio also indicates a better operating efficiency of the bank.

46
 CHAPTER 8:
DATA ANALYSIS AND
INTERPRETATION

47
 8. DATA ANALYSIS AND INTERPRETATION

Age

Gender

Occupation

48
Income

Do you know what capital market is?

Do you invest in capital market?

49
From whom you know about capital market?

Which product of capital market you know?

Following in which do you invested your money?

50
How much of your income do you invest in capital market?

Why do you invest money in capital market?

Which factor do you consider while investing?

51
In which duration you invest money in market?

While investing what you consider for investment?

If you are planning to invest in Share market so which do you prefer for investment?

52
If you are planning for investing in Mutual funds so which do you prefer for investment?

While planning to invest in Mutual fund then which one you will prefer?

Do you know what is Bond?

53
Which Type of Bond do you know?

54
 CHAPTER 9:
FINDING

55
 9. FINDING

Collected Data by questionaries using google form In that collected 60 responses. In that 60
respondents maximum no of respondents 35 are male and 25 are Female. The age group of
maximum respondent is 18 – 25 years because maximum respondents are students and some are
employed and remaining from 26 to 35 above age group.

Maximum respondents are students and the reason to know about capital market is education. And
76% of respondents are invest in capital market. In capital market maximum respondents know
about share market and mutual funds and some of them know about bonds in bonds the most known
bonds are government bond and corporate bond.

In that 60 respondents many of them invest in share market, mutual fund and FD because now a
days mutual funds and share market gives maximum returns than other traditional investments. In
share market investors get average 18 to 20 % returns and in mutual funds investors get average 12
to 15 % returns and those who don’t want to take risk they invest in FD and earn interest maximum
6%.

And as per respondents Data lot of investors invest money for better returns and to beat inflation but
some people invest money for tax saving benefits for long term and medium term and in mutual
funds and share market how long you hold your position then chances of earning maximum returns
are more.

The Maximum investors in share market and mutual fund invest in growth stocks / fund and some
go with dividend paying stocks. In mutual fund now a days maximum retail investors invest in SIP
(systematic investment plan) as we know we can invest in mutual fund through SIP with the
minimum amount of Rs.500/- and generate maximum return in longer period.

In Peer Comparison HDFC Bank is better in Market cap is huge RS.7,67,712.57 Cr., CMP is better
of Kotak Mahindra Bank of Rs1790.75, ROCE and ROC is better of HDFC Bank ROCE is 14.51%
and ROC is 16.61% and in terms of CASA is better of Kotak Mahindra Bank with the percentage
of 60.4% but in terms of PE Ratio SBI AND Bank of Baroda is better.

56
CHAPTER 10:
CONCLUSION

57
 10. CONCLUSION

Capital market is a market where buyers and sellers engage in trade of financial securities like bonds,
stocks, etc. The buying/selling is undertaken by participants such as individuals and institutions.

Capital market consists of primary markets and secondary markets. Primary markets deal with trade
of new issues of stocks and other securities, whereas secondary market deals with the exchange of
existing or previously-issued securities. Another important division in the capital market is made on
the basis of the nature of security traded, i.e. stock market and bond market.

There are two types of capital market one is Primary market in that market in which shares,
debentures and other securities are sold for the first time for collecting long-term capital. and second
is Secondary market is that market in which the buying and selling of the previously issued securities
is done. The transactions of the secondary market are generally done through the medium of stock
exchange.

The Securities and Exchange Board of India (SEBI) was established in 1988. It got a legal status in
1992. SEBI was primarily set up to regulate the activities of to control the operations of mutual
funds, to work as a promoter of the stock exchange activities and to act as a regulatory authority of
new issue activities of companies. The SEBI was set up with the fundamental objective to protect
the interest of investors in securities market and for matters connected therewith or incidental
thereto.

In the project for awareness I took data by using google form asked Questions to respondents and
from that maximum respondents are aware about capital market and invest in capital market and
having a good knowledge about capital market

58
CHAPTER 11: BIBLIOGRAPHY

59
 11. BIBLIOGRAPHY

https://www.investopedia.com/terms/b/bond.asp
https://www.investopedia.com/terms/c/capitalmarkets.asp
https://en.wikipedia.org/wiki/Capital_market
https://en.wikipedia.org/wiki/Stock_exchange
https://efinancemanagement.com/sources-of-finance/types-of-preference-shares
https://www.investopedia.com/terms/o/open-endfund.asp
https://groww.in/p/closed-ended-funds
https://en.wikipedia.org/wiki/Debenture
https://www.adityabirlacapital.com/abc-of-money/factors-affecting-stock- market

60
CHAPTER 12: ANNEXURE

61
 12. ANNEXURE

1) Name

2) Gender
Male Female

3) Age
18 - 25
26 - 35
35 above

4) Occupation
Student Service
Self employed
Businessman

5) Income
Below 1,00,000
1,00,000 - 3,00,000
3,00,000 - 5,00,000
More than 5,00,000

6) Do you know what is capital market?

Yes
No

7) Do you invest in capital market?

Yes
No

8) Which product of capital market you know?

Share Market
Mutual Funds
Bonds Debentures

62
9) From whom you know about capital market?
Friend/family
Newspaper
Advertisement
Social media

10) Following In which do you invested your money?

Share Market
Mutual Funds
Bonds
Debentures FD
Real-estate

11) How much of your income do you invest in capital market?

1-10% of yearly income
11-20% of yearly income
21-30% of yearly income
More than 30% of yearly income

12) Why do you invest money in capital market?

Tax saving benefits
Better returns
Beat inflationOther

13) Which factor do you consider while investing?

High return
Risk
Liquidity
Company / Fund reputation

14) In which duration you invest money in market?

Short Term
Medium Term
Long Term

15) While investing what you consider for investment?

Future Goals
Fundamentals
Other

63
16) If you are planning to invest in Share market so which do you prefer for
investment?
Dividend paying stocksGrowth
stocks

17) If you are planning for investing in Mutual funds so which do you preferfor
investment?
Equity FundsDebt
Funds Hybrid
Funds

18) While planning to invest in Mutual fund then which one you will prefer?
SIP
Lump sum

19) Do you know what is Bond?

Yes
No

20) Which Type of Bond do you know?

Corporate Bonds
Municipal Bonds
Government Bonds
Foreign Bond

64