INTRODUCTION

Indiabulls started in 1999 as an online broking firm. It soon ventured into offline broking, then credit services, real estate, and lately into insurance (in JV with SocieteGenerale), a multicommodity exchange (in JV with MMTC) and so on. Now the group, co-founded by threeIITians, Sameer Gehlaut, Rajeev Rattan and Saurabh Mittal, is looking at venturing into private equity business.

Indiabulls Financial Services is the holding company of three other firms: Indiabulls Securities, the broking and investment activities Indiabulls Insurance Advisors, a distributor of insurance products Indiabulls Commodities, a commodities trading broker

Indiabulls has emerged as one of the leading and fastest growing financial company in less than two year, since its initial public offering in September 2004. It has a market capitalization of around 6,300 million (31st December, 2007) and consolidated net worth of the group is around USD 905 million.

Indiabulls is India's leading Financial Services and Real Estate Company having over 640 branches all over India. Indiabulls serves the financial needs of more than 4,50,000customers with its wide range of financial services and products from securities,derivatives trading, depositary services, research & advisory services, consumer secured &unsecured credit, loan against shares and mortgage & housing finance. With around 4000 Relationship Managers, Indiabulls helps its
1

clients to satisfy their customized financial goals. Indiabulls through its group companies has entered Indian Real Estate business in 2005. It is currently evaluating several large-scale projects worth several hundred million dollars.

Business of the company has grown in leaps and bounds since its inception. Revenue of the company grew at a CAGR of 159% from FY03 to FY07. During the same period, profits of the company grew at a CAGR of 184%.

"Indiabulls Financial Services Ltd" is listed on the National Stock Exchange, Bombay Stock Exchange and Luxembourg Stock Exchange. Indiabulls and its group companies have attracted more than USD 800 million of equity capital in Foreign Direct Investment (FDI) since March 2000. Some of the large shareholders of Indiabulls are the largest financial institutions of the world such as Fidelity Funds, Goldman Sachs, Merrill Lynch, Morgan Stanley and Farallon Capital.

Learning from organization

Being a part of treasury department of Indiabulls, I have learnt so many practical things about managing a part of finance in a company. My leanings are as follows:

Managing excess cash flow-How does a company manage excess cash and how does it meet shortage of funds.

Analysis of daily cash report, it is a main document for daily investment for Indiabulls.

I got in hand experience of bank guarantees, RTGS (Real time gross settlement) and how they help in doing safe investment.

Managing the wealth of finance group- like how much to invest in mutual fundsand in which mutual funds? How much to put in Fixed deposit, etc.

I got to know certain general but important things like how to work in time constraints. Like in Indiabulls we have time limit for doing certain part of total process after that it has no value and it could cause loss to the company.

Apart from departmental work, I experienced to work in a competitive organization which has added value to my experience.

Contribution to organization

My project includes study of various investment opportunities available to investors in India. It includes detail explanation of each asset class and their comparison on risk and return parameter.

In Treasury department of Indiabulls one of the prime activities was to manage cash on day to day basis. The excess cash we used to invest on daily basis in mutual funds. Now, there are several schemes and types of mutual funds, what I have analyzed during my period that they invest in liquid funds and that could be liquid or liquid plus or some cash scheme. To explore more options for investment I have shown what return we can expect from other asset classes and have compared other schemes of mutual funds to broaden the investment base. In the report I have shown that liquid funds give return of 7-8% in 3yrs. Other funds such as balanced and equity fund provides higher return of 24% and 39% respectively. Return is high in these funds but their major disadvantage over liquid fund is lack of liquidity. Where liquid fund can be redeemed next day, these funds can't be redeemed so early.

But if we want to do investment for long time period then we can opt for these funds. For a short span of time Govt. securities are other good option because this provides more or less same return from 6 to7% as liquid funds and are highly liquid asset class. Over the mutual funds they are less risky because mutual funds performance depends upon market performance and govt. securities
promise certain fixed return The firms online trading and investment site-www.raligare.com-was

launched on Feb 8, 2000. The site gives access to superior content and transaction facility to retail customers across the country. Known for its jargon-free, investor friendly language and high quality 4

research, the site has a registered base of over one lakh customers. The number of trading members currently stands at over 5000. While online trading currently accounts for just over 1 per cent of the daily trading in stocks in India, Indiabulls alone accounts for 22 per cent of the volumes traded online.

The content-rich and research oriented portal has stood out among its contemporaries because of its steadfast dedication to offering customers best-of-breed technology and superior market information. The objective has been to let customers makeinformed decisions and to simplify the process of investing in stocks.

On April 17, 2002 Indiabulls launched SpeedTrade, a net-based executable application that emulates the broker terminals along with host of other information relevant to the Day Traders. This was for the first time that a net-based trading station of this caliber was offered to the traders. In the last six months SpeedTrade has become a de facto standard for the Day Trading community over the net.

Indiabulls has always believed in investing in technology to build its business. The company has used some of the best-known names in the IT industry, like Sun Microsystems, Oracle, Microsoft, Cambridge Technologies, Vignette, VeriSign Financial Technologies India LTD, Spider Software Pvt. Ltd. to build its trading engine and content.

OBJECTIVE PRIMARY OBJECTIVE

Study of competitive market and to acquire new customer on the basis of need gap analysis.

SECONDARY OBJECTIVE

To analyze, interpret and study the competitiveness of various brokerage houses.

To know the attitude & preference of the general investors in the Indian capital market.

To analyze the various pros and cons in the capital market.

Making aware them to providing the good service by Indiabulls.

LITERATURE REVIEW
In few years Share Market has emerged as a tool for ensuring ones financial well being.As information and awareness is rising more and more people are enjoying the benefits of investing in share market. The main reason the number of retail share market investors remains small is that nine in ten people with incomes in India do not know that share market exist. But once people are aware of Share market investment opportunities, the number who decide to invest in share market increases .The analysis and advice presented in this Project Report is based on market research on the saving and investment practices of the investors and preferences of the investors for investment in Share market. This Report will help to know about the investors Preferences in Share market means Are they prefer any particular Asset Management Company (AMC), which type of Product they prefer, which Option (Growth or Dividend) they prefer or Which Investment Strategy they follow.

This Project as a whole can be divided into two parts.

The first part gives an insight about Share market and its various aspects, the Company Profile, Objectives of the study, Research Methodology. One can have a brief knowledge about Share market and its basics through the Project.

The second part of the Project consists of data and its analysis collected through survey done on 50 people. For the collection of Primary data I made a questionnaire and surveyed of 50 people. I also taken interview of many People those who were coming at the Indiabulls securities where I done my Project. I visited other AMCs in Gurgaon to getsome

knowledge related to my topic.This Project covers the topic INVESTMENT IN CAPITAL MARKET.

WHAT ARE STOCKS

WHAT ARE STOCKS 1.1 The Definition of a Stock:

Plain and simple, stock is a share in the ownership of a company. Stock represents a claim on the company's assets and earnings. As you acquire more stock, your ownership stake in the company becomes greater. Whether you say shares, equity, or stock, it all means the same thing.

1.2 Being an Owner:

Holding a company's stock means that you are one of the many owners (shareholders) of a company, and, as such, you have a claim (usually very small) to everything the company owns. Yes, this means that technically you own every piece of furniture, every trademark, and every contract of the company. As an owner, you are entitled to your share of the company's earnings as well as any voting rights attached to the stock.

A stock is represented by a stock certificate. This is a fancy piece of paper that is proof of your ownership. In today's computer age, you won't actually get to see this document because your brokerage keeps these records electronically, which is also known as holding shares in Demit form. This is done to make the shares easier to trade. In the past when a person wanted to sell his or her shares, that person physically took the certificates down to the brokerage. Now, trading with a click of the mouse or a phone call makes life easier for everybody.

Being a shareholder of a public company does not mean you have a say in the day-to-day running of the business. Instead, one vote per share to elect the board of directors at annual
10

meetings is the extent to which you have a say in the company. For instance, being a Microsoft shareholder doesn't mean you can call up Bill Gates and tell him how you think the company should be run.

The management of the company is supposed to increase the value of the firm for shareholders. If this doesn't happen, the shareholders can vote to have the management removed--well, this is the theory anyway. In reality, individual investors don't own enough shares to have a material influence on the company. It's really the big boys like large institutional investors and billionaire entrepreneurs who make the decisions.

It isnt too big a deal that the shareholders are not the ones managing the company. After all, the idea is that you don't want to have to work to make money, right? The importance of being a shareholder is that you are entitled to a portion of the companys profits and have a claim on assets. Profits are sometimes paid out in the form of dividends.

The more shares you own, the larger the portion of the profits you get. Your claim on assets is only relevant if a company goes bankrupt. In case of liquidation, you'll receive what's left after all the creditors have been paid. This last point is worth repeating: the importance of stock ownership is your claim on assets and earnings.

Another extremely important feature of stock is its limited liability, which means that, as an owner of a stock, you are not personally liable if the company is not able to pay its debts. Other companies such as partnerships are set up so that if the partnership goes bankrupt the creditors

11

can come after the partners (shareholders) personally and sell off their house, car, furniture, etc. Owning stock means that, no matter what, the maximum value you can lose is the value of your investment. Even if a company of which you are a shareholder goes bankrupt, you can never lose your personal assets.

1.3 Debt vs. Equity:

Why does a company issue stock? Why would the founders share the profits with thousands of people when they could keep profits to themselves? The reason is that at some point every company needs to raise money. To do this, companies can either borrow it from somebody or raise it by selling part of the company, which is known as issuing stock.

A company can borrow by taking a loan from a bank or by issuing bonds. Both methods fit under "debt financing." On the other hand, issuing stock is called "equity financing." Issuing stock is advantageous for the company because it does not require the company to pay back the money or make interest payments along the way. All that the shareholders get in return for their money is the hope that the shares will some daybed worth more. The first sale of a stock, which is issued by the private company itself, is called the initial public offering (IPO).

Shareholders earn a lot if a company is successful, but they also stand to lose their It is important that you understand the distinction between a company financing through debt and financing through equity. When you buy a debt investment such as a bond, you are guaranteed the return of your money (the principal) along with promised interest payments.

12

This isn't the case with an equity investment. By becoming an owner, you assume the risk of the company not being successful. Just as a small business owner isn't guaranteed a return, neither is a shareholder. As an owner your claim on assets is lesser than that of creditors. This means that if a company goes bankrupt and liquidates, you, as a shareholder, don't get any money until the banks and bondholders have been paid out.Shareholders earn a lot if a company is successful, but they also stand to lose their entire investment if the company isn't successful.

1.4 Risk:
Itmust be emphasized that there are no guarantees when it comes to individual stocks. Some companies pay out dividends, but many others do not and there is no obligation to pay out dividends even for those firms that have traditionally given them. Without dividends an can make money on a stock only through its appreciation in the open market. On the downside, any stock may go bankrupt, in which case your investment is worth nothing. Although risk might sound all negative, there is also a bright side. Taking-on greater risk demands a greater return on your investment. This is the reason why stocks have historically outperformed other investments such as bonds or savings accounts.

13

INVESTING IN SHARES
While investing is relatively painless, its rewards are plentiful. To understand why you need to invest, you need to realize that you lose when you just save and do not invest. That is because the value of the rupee decreases every year due to inflation. For example, if you ran a household within a budget of Rs100,000 in 2010, to run the same household today (assuming the same set of expenses) you would probably need Rs125,000--that's Rs25,000 added to your budget because of inflation! Thus you need to generate an additional Rs25,000 and that can be possible only by INVESTING your hard-earned money.

2.1 VARIOUS INVESTMENT OPTIONS:

One can invest in various financial instruments like equities (popularly referred to as shares), bank fixed deposits, National Savings Certificates etc as well as in gold, real estate etc. Out of these shares give best return on investment.

KEY BENEFITS OF INVESTING IN SHARES

Shares or equities are one of the best investment option for individual investors due to the following benefits:

Possibilities of higher return:

Shares have outperformed all the other investment instruments and given the maximum returns in the long run while the other instruments have barely managed to generate returns at a rate higher than the inflation rate (6.10%) on an average shares have given returns of about 17% in a year.

14

 Dividend income:
Investments in shares are attractive as much for their appreciation in the share prices as for the dividends their companies pay out.

Tax advantages:
Shares appear as the best investment option if you also consider the unbeatable tab benefits that they offer. First, the dividend income is tax-free in the hands of investors. Second, you are required to pay only a 10% short term capital gains tax on the profits made from investments in shares, if you book your profits within a year of making the purchase. Third, you don't need to pay any long-term capital gains tax on the profits if you sell the shares after holding them for a period of one year. The capital gains tax rate is much higher for other investment instruments: a 30% short-term capital gains tax (assuming that you fall in the 30% tax bracket) and a 10% longterm capital gains tax.

Easy liquidity:
Shares can also be made liquid anytime from anywhere (on sharekhan.com you can sell a share at the click of a mouse from anywhere in the world) and the investments can be realized in just two working days. Considering the high returns, the tax advantages and the highly liquid nature, shares are the best investment option to create wealth.

15

WHAT CAUSES PRICES TO CHANGE?

Stock prices change every day by market forces. By this we mean that share prices change because of supply and demand. If more people want to buy a stock (demand) than sell it (supply), then the price moves up. Conversely, if more people wanted to sell a stock than buy it, there would be greater supply than demand, and the price would fall. Understanding supply and demand is easy. What is difficult to comprehend is what makes people like a particular stock and dislike another stock. This comes down to figuring out what news is positive for a company and what news is negative. There are many answers to this problem and just about any investor you ask has their own ideas and strategies. That being said, the principal theory is that the price movement of a stock indicates what investors feel a company is worth. Don't equate a company's value with the stock price. The value of a company is its market capitalization, which is the stock price multiplied by the number of shares outstanding. For example, a company that trades at Rs.100 per share and has 1,000,000 shares outstanding has a lesser value than a company that trades at Rs.50 but has 5,000,000 shares outstanding (Rs.100 x 1,000,000 = Rs.100,000,000 while Rs.50 x 5,000,000 = Rs.250,000,000). To further complicate things, the price of a stock doesn't only reflect a company's current value--it also reflects the growth that investors expect in the future. The most important factor that affects the value of a company is its earnings. Earnings are the profit a company makes, and in the long run no company can survive without them. It makes sense when you think about it. If a company never makes money, they aren't going to stay in business. Public companies are required to report their earnings four times a year (once each quarter). The reason behind this is that analysts base their future value of a company on their
16

earnings projection. If a company's results surprise (are better than expected), the price jumps up. If a company's results disappoint (are worse than expected), then the price will fall. So, why do stock prices change? The best answer is that nobody really knows for sure. Some believe that it isn't possible to predict how stocks will change in price while others think that by drawing charts and looking at past price movements, you can determine when to buy and sell. The only thing we do know as a certainty is that stocks are volatile and can change in price extremely rapidly.

HERE ARE THE IMPORTANT THINGS TO GRASP ABOUT THIS SUBJECT:

1. At the most fundamental level, supply and demand in the market determine stock price. 2. Price times the number of shares outstanding (market capitalization) is the value of a company. Comparing just the share price of two companies is meaningless. 3. Theoretically earnings are what affect investors' valuation of a company, but there are other indicators that investors use to predict stock price. Remember, it is investors' sentiments, attitudes, and expectations that ultimately affect stock prices. 4. There are many theories that try to explain the way stock prices move the way they do. Unfortunately, there is no one theory that can explain everything.

17

THE BULLS, THE BEARS, AND THE FARM :

On a stock market, the bulls and bears are in a constant struggle. If you haven't heard of these terms already, you undoubtedly will as you begin to invest.

THE BULLS:
A bull market is when everything in the economy is great, people are finding jobs, GDP is growing, and stocks are rising. Things are just plain rosy! Picking stocks during a bull market is easier because everything is going up. Bull markets cannot last forever though, and sometimes they can lead to dangerous situations if stocks become overvalued. If a person is optimistic, believing that stocks will go up, he or she is called a "bull" and said to have a "bullish outlook."

THE BEARS:
A bear market is when the economy is bad, recession is looming, and stock prices are falling. Bear markets make it tough for investors to pick profitable stocks. One solution to this is to make money when stocks are falling using a technique called short selling. Another strategy is to wait on the sidelines until you feel that the bear market is nearing its end, only starting to buy in anticipation of a bull market. If a person is pessimistic, believing that stocks are going to drop, he or she is called a "bear" and said to have a "bearish outlook."

18

THE OTHER ANIMALS ON THE FARM :

Chickens and Pigs Chickens are afraid to lose anything. Their fear overrides their need to make profits and so they turn only to money-market securities or get out of the markets all together. While it's true that you should never invest into something over which you lose sleep, you are also guaranteed never to see any return if you avoid the market completely and never take any risk. Pigs are high-risk investors looking for the one big score in a short period of time. Pigs buy on hot tips and invest in companies without doing their due diligence. They get impatient, greedy, and emotional about their investments, and they are drawn to high-risk securities without putting in the proper time or money to learn about these investment vehicles. Professional traders love the pigs, as it's often from their losses that the bulls and bears reap their profits.

WHAT TYPE OF INVESTOR WILL YOU BE?

There are plenty of different investment styles and strategies out there. Even though the bulls and bears are constantly at odds, they both can make money with the changing cycles in the market. Even the chickens see some returns, though not a lot. The one loser in this picture is the pig. Make sure you don't get into the market before you are ready. Be conservative and never invest in anything you do not understand. Before you jump in without the right knowledge, think about this old stock market saying: Bulls make money, bears make money, but pigs just get slaughtered!

19

BUYING AND SELLING OF SHARES

20

BUYING AND SELLING OF SHARES

4.1 DIFFERENT WAYS OF INVESTING IN SHARES:

There are basically two ways of investing in shares: a) Purchase shares from the primary market (i.e. IPOs):
The first time that a companys shares are issued to the public, it is By a process called the initial public offering (IPO). In an IPO the company offloads a certain percentage of its total shares to the public at a certain price. Most IPOs these days do not have a fixed offer price. Instead they follow a method called the book buildingprocess, where the offerprice is placed in a band or a rangewith the highest and the lowestvalue. The public can bid for theshares at any price in theband specified. Once the bidscome in, the company evaluates all the bids and decides on an offer price in that range. After the offer price is fixed, the company eitherallots its shares to the people who had applied for its shares or returns them their money.

b) Trade in the secondary market, i.e. stock exchanges:

Once the offer price is fixed and the shares are issued to the people, stock exchanges facilitate the trading of shares for the general public. Once a stock is listed on an exchange, people can start trading in its shares. In a stock exchange the existing shareholders sell their shares to anyone who is willing to buy them at a price agreeable to both parties. Individuals cannot buy or sell shares in a stock exchange directly; they have to execute their transactions through authorized members of the stock exchange who are also called stock brokers.

21

FUNCTIONS OF STOCK MARKET

In order to understand how the stock market operates, you should have knowledge about the role of following institutions / organist ions: a) Stock exchanges, b) Brokers, c) Registrars, d) Depositories and their participants, and e) Securities and Exchange Board of India (Sebi)

a) Stock exchanges: A stock exchange is the marketplace where companies are listed and where the trading happens. There are different stock exchanges in the country, the pre-dominant being the National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE). b) Brokers: A stock exchange functions through its members called brokers. If you want to buy or sell a share, you contact a broker. Each stock exchange has a limited set of brokers and these brokers contact each other using trading terminals to find out who is interested in the share you want to buy or sell. Brokers have terminals linked to the BSE or the NSE and they directly purchase or sell shares using these terminals. The entire transaction happens electronically or through websites like www.indiabullssecurities.com. Brokers may also authorize a sub-broker to conduct the transactions on behalf of them. Since brokers are providing a service they charge you for the same. Normally this payment is not a flat rate, but a commission of the transaction value. Brokerages normally range from 0.5% to 1% for delivery-based transactions and 0.05% for intra-day transactions.

22

c) Registrars: The registrar for each company maintains records of all the shareowners of the company and the number of shares that they own. Whenever an ownership changes takes place, the registrar updates the shareholders database.

d) Depositories and their participants:

Depositories are organizations that hold shares of investors, on request, in electronic form through a registered Depository Participant. It can be compared with a bank as it holds securities in an account, transfers securities between accounts on the instruction of the account holder, facilitates the transfer of ownership without the account holder needing to handle securities and makes the safekeeping of shares easy. The agent through which a depositories interfaces with the investor is known as a depository participant. You can create a demat account with a DP, who will keep an account of all the shares you own. This is much like the banking system, where you just create an account and have a passbook which updates you on the money you own and the transactions you have made. In your demat account you own shares in an electronic format and your account gets updated as you buy and sell shares.

e) SEBI:
The regulatory body that governs all stock market transactions is the Securities and Exchange Board of India. SEBI forms rule and regulations that govern transactions in securities market and that the stock exchanges and other intermediaries follow all such rules and regulations set by it and/or the government. SEBI also looks into investor complaints against companies. It is quasi-judicial and can try cases and pass judgments against any market participants. It also looks into mergers and acquisitions of companies.
23

4.3 BEFORE INVESTING:

To start investing in shares you need to open a stock-broking accountwith a registered broker and a demat account with a Depository Participant. When you open a demat account, First Step account, you get everything you need to start investing in shares. Indiabullsoffers trade execution on both the BSE and the NSE, and being a DP it also provides you a free (conditions apply) demit account along with your trading account.

4.4 Placing an Order:

To facilitate the buying and selling of shares, Indiabulls offers multiple trading channels. You can, for example, walk into any of our 250 share shops across 120 cities in India and get your orders executed.You can, on the other hand, even trade online through our site Indiabullssecurities.com. For advanced traders we also have special online trading software called SpeedTrade. You can also call on our Dial-n-Trade number, which is serviced by a dedicated call centre, and place an order with a Dial-n-Trade executive. When you buy a share, you specify the company whose shares you want to buy, the quantity of shares you want to buy and the price at which you want to buy them. If you don't specify the price, the shares will be bought at the market rate prevalent at that time. The process of selling a share is similar tothe process of buying a share. Again here you have to specify the company, the number of shares to sell and the price at which you want to sell them. If you don't specify the price, the shares will be sold at the prevailing market price.

24

4.5 DO I KNOW WITH WHOM I AM TRANSACTING WITH?

When you transact in a share, you are basically placing an order through your broker. Transactions happen through exchange systems through anonymous order matching mechanism. Therefore the details of counter party to your transactions are not known to you. You get unique transaction numbers as allotted by the Exchange from your broker. Transactions are settled on a daily rolling settlement basis. All the transactions carried through the day are summarized by the Exchange at the end of the day. You have to settle your transactions with your Broker and the Broker in turn settles transactions with the stock exchange. This process of settlement is called a settlement cycle and the time taken for this is currently T+2 days. i.e., the settlement will occur two working days after you make the trade. You need to pay for the purchases/losses before the settlement deadline and you will receive securities after the settlement deadline. Similarly you need to deliver securities sold before the deadline and you receive payment for sale/profit after the settlement deadline. If you have an online trading account and a demat account with Indiabulls then settlement process for securities happens as a paperlesstransaction.

25

HOW CAN ONE KNOW CURRENT PRICE OF ANY OTHER STOCK ?

Whenever you are buying or selling a share, you will encounter certain terms related to share prices. These terms deal with the individual price movements of a single share as well as the price movements of all the shares. For every share, typically there are four price parameters. a) Open: This is the price at which the share opened on a particular day, that is the price at which the first purchase of the share was made during that day. b) High: This is the highest price that a share went up to on a given day, or the highest price the investors paid for that share. c) Low: This refers to the lowest price that a share fell to during a day, or the lowest price an investor paid for that share. d) Close: This is the price at which the share closed on that day or the price for the last trade of that day. At any given point of time, the share price will fluctuate between the highs and the lows, sometimes reaching new highs, sometimes falling to new lows. When trading in shares, you need to mention the price point at which you want to buy or sell. To specify the price point, it helps if you know the statistics or the trends of your stock, and the stock's opening and closing prices of the previous days.

26

You can also trade in shares without specifying the pricethis is known as a market order. In this case the trade happens at the market price at that point of time.

4.3

TRACKING THE STOCK MARKET

The BSE Sensex (Bombay Stock Exchange Sensitive Index) measures the movement of 30 most actively traded shares on the BSE. These 30 companies represent a cross-section of sectors of the economy. Similar to the BSE Sensex is the Nifty or the S&P CNX Nifty, which measures the movement of the NSE. This index tracks 50 stocks, which represent about 60% of the market capitalization of the NSE. The upward or downward movement of the Sensex or Nifty is a typical indication of whether the share prices are going up or down in general. If the Sensex goes up on a particular day, it doesn't mean that the share prices of all companies would have gone up on that day. Tracking the movement of stock indices over a longer period is an important part of intelligent investing.

27

4.4

EARNING FROM INVESTMENTS

Shares can give you returns in two forms: a) Appreciation in share prices You buy shares with the belief that their price will increase and that when this happens you will be able to sell off your shares and earn profit. For example, if you bought a share for Rs100 three years ago and it is Rs500 today, then you have earned Rs400 in three years.

B)Dividend
When a company makes profits, it can choose to share part of its profits with its shareholders by paying out dividend. This dividend is paid as a percentage of the face value of the share. For example, a company may declare a dividend of 25%. Then if the face value of its share is Rs10 you will get Rs2.50 for every share you own of that company, irrespective of the market price. In itself this might not be much, but over a longer period of time or if you have a lot of shares, you could earn quite a bit from the dividend itself. The best thing about dividends is that they are tax free in the hands of investors. Dividend yield stocks are known to give returns higher than fixed deposits. [Dividend yield = (dividend per share / market price of the share) x 100]. Indiabulls informs its customers of good dividend yield stocks from time to time.

28

4.5

EXPENSES DURING A TRANSACTION

Every share transaction attracts some tax or the other. Some of the main expenses are as

follows: a)

Capital gains tax:

If you purchase a share and sell it at a price higher than the purchase price and if this sale

is within a year of the purchase, then approximately 10% capital gains tax is levied on the profit that you make. For example, if you bought a share for Rs100 on January 1, 2013 and sold it for Rs150 on July 1, 2013, then you have to pay a tax of 10% on the Rs50 profit that you make. If you sell after a year of purchase, there is no tax on the long-term gains. b) Securities transaction tax Securities transaction tax (STT) is levied by the government on every transaction you do on a stock exchange. You don't have to pay this separately; it's collected by your broker. As per the Union Budget 2013 the STT for cash segment transactions will be 0.10% (sell as well as buy) on delivery-based transactions and 0.025% on intra-day sells transactions.

c) Brokerage
Brokers get a commission on every trade that they do for you. This commission varies from broker to broker; at sharekhan.com the brokerage is 0.5% for delivery-based transactions and 0.05% for intraday transactions. On the brokerage amount you are required to pay a service tax to the government (to be collected by the broker). There could also be separate transaction

29

charges in the nature of Exchange turnover based charges, stamp duty on transactions etc. The brokerage varies depending on the service that the broker provides you. Some brokers, such as Sharekhan, offer its clients regular updates on companies, multiple means to transact and customer service support. d) Depository fees Since most of the shares exist in a dematerialized form, every time you buy or sell shares the transactions are being noted by your DP. The DPs normally levy a charge which is an annual charge and also .a charge on each transaction.

30

Selecting the Right shares?

31

SELECTING THE RIGHT SHARES 5.1 INVESTMENT DECISIONS:

Your investment decisions should not be based on rumours, gut feel or emotions; but should be taken after a careful study of facts. Most investors who have made their money in the stock market are those who have been patient, have backed their investments with logic and have never lost sight of common sense. Typically there are two ways of selecting the right stock: a) Fundamental research b) Technical analysis.

a)

Fundamental research:
This requires you to rate a stock based on its historical performance and growth parameters.

This type of research involves a careful scrutiny of the financials of a company.

b)

Technical analysis:
This requires you to predict the trend in the market or the price of a company based on

historical price movements, using certain statistical parameters. Sharekhan offers a selection of stocks based on both fundamental and technical research techniques with different time frames for both types of calls.

32

5.2 COMPONENTS OF FUNDAMENTAL RESEARCH:

A fundamental researcher looks at the performance of a company over a period of time as well as its future growth prospects. He might compare this data with that of the other companies in the same sector and measure the same against a stock market index. Most of the data necessary for doing fundamental research comes from the quarterly and annual reports of companies as well as from the analysis of their stock prices. A fundamental researcher tidies the following: (1) annual reports and (2) ratios like EPS, PER etc.

5.3 ANNUAL REPORT:

The annual report of a company provides a wealth of information about the company. In an annual report investors must look for the Profit & Loss (P&L) statement and the Balance Sheet.

The P&L statement:

The P&L statement gives you the figures relating to the company's income, expenditure, earnings before interest, depreciation, tax and amortization (EBIDTA), and net profit. Income, Expenditure and Net profit are the main heads of the P&L statement. A)

Income:
The total earnings of the company from varied sources. This can include sales, income

from dividends, interest received, profit from asset sales, stock variation (which refers to the closing stock in inventory) and so on. However attention should be paid to the Sales figure, which pertains to the core business of the company.

33

B)

Expenditure:
The actual money spent on operational expenses (like raw material consumed, labour costs

etc). The Other expenses are interest on servicing a debt, depreciation etc. C)

Operating profit(popularly referred to as EBIDTA):

Deducting Operational expenses from Sales gives you the Operating profit.

D)

Net profit:
After deducting interest cost, depreciation cost and taxes from Operating profit you get

the profit after tax or the Net profit. Sometimes one-off or non-recurring items such as the sale of land or investments may boost a companys net profit. Investors need to assess whether the profit is driven by core operation and is sustainable.

The Balance Sheet

The Balance Sheet gives you an insight into the assets of the company, its existing liabilities and how its funds are utilized. It can also contain the details of the sources of the funds (equity capital, reserves, debt etc).

RATIOS
Ratios are helpful in fundamental Analysis. Using the data from the annual report and ratios like EPS and PER, it is possible for you to judge the financial health of a company.

i)

EPS:
Earnings per share- this ratio reflects how much the company is earning per share. The

EPS is calculated as net profit divided by the total number of shares that have been issued. For

34

example, if a company has profits of Rs100 million and has issued 10 million shares, its EPS is 10. The EPS is used to gauge a company's profitability per unit of shareholder ownership. You can use the ratio to compare two companies in the same sector. For example, companies A and B both earn Rs100, but company A has ten shares outstanding, while company B has 50 shares outstanding. It means that company A has an EPS of 10 and company B has an EPS of 2. As a general rule, a higher EPS drives up the stock price of a company. However the EPS should not be viewed in isolation and should also be analyzed along with the industry average as well as the EPS of the other companies in the same sector.

ii)

PER:
While the EPS looks at the profitability of a company, the PER (i.e the price/earnings

ratio) is the market price equivalent. The PER refers to the market price divided by the EPS. Thus in the above example if the EPS is 10 and the market price is 50, then the PER is 50/10 = 5. Meaning, the share of the company is trading at a multiple of 5. This ratio is typically compared with that of the other companies in the same sector and you get to know whether the company is on the fast track or is a slow runner. While comparing the PERs it is better to stick to the companies in a particular industry and not compare across industries.

35

MINIMISE RISKS AND MAXIMIZE RETURNS

36

HOW TO MINIMISE RISKS AND MAXIMIZE RETURNS 6.1 DONT ATTEMPT TIMING THE MARKET:
Buy when stocks are falling, sell when these are rising. This works well when you are a long-term investor and there is an extended bear or bull run. Don't try to second guess or predict that the market will fall today and rise tomorrow. Even seasoned investors cannot do that!

6.2 DON'T TRY TO GUESS THE MARKET'S FAVOURITES:

Your instincts might tell you that pharm or technology stocks are hot due to certain policies or events, but remember millions of investors have already guessed that and bought these stocks. The prices of these stocks would therefore be at a higher level when you buy them. Instead focus on the long term and don't get swayed by short-term events.

6.3 AIMS FOR THE LONG HAUL:

Short-term investing is prone to higher risks. When investing in stocks, aim to get good returns after a period of three to five years at the minimum. Also churn your portfolio periodically and based on the progress that a company makes in a quarter or in six months, decide whether to hold the stock or get out of it.

6.4 AVOID HOT TIPS:

You may have overheard some news about a stock or your friend may advise that a particular stock is all geared to move up. Avoid such tips like the plague and your investments will remain safe.

37

6.5 BLUE-CHIPS ARE SAFE BETS:

Blue-chip companies are there because they have done well in the past and have a high market capitalization. It is a likely guess that they will maintain their track record and give you higher returns even in future. Therefore invest in companies that have a good track record.

6.6 SLOW AND STEADY STREAM OF INVESTMENTS:

Set aside a certain portion of your earnings every month and invest that sum in shares irrespective of the market conditions. This way, over a period of time you can amass a substantial number of shares of the stocks in your portfolio.

6.7 THINK PORTFOLIO:

Don't put all your earnings in a single stock. Try to have a diverse portfolio of stocks. This way even if one stock doesn't do well, you are still well protected. Also invest across sectors, since any problem in one sector would affect all stocks in the sector. As a thumb rule, if you have investments of up to Rs50,000 invest in two to three stocks. For about Rs150,000 invest in three to five stocks, for around Rs500,000 have five to seven stocks, and around ten stocks for higher amounts.

6.8 DONT INVEST ALL YOUR SAVINGS:

Always maintain a core set of reserves. You should never touch these reserves for investing, so that even in the worst case you still have some money. Typically these reserves should be your salary of about six months.

38

6.9 BE REALISTIC:
Analyze the reason why you are investing in shares, i.e. why you require the money. For a better life style? For your child's future education? For retirement planning? Once you have answered that, ask yourself how much appreciation do you need to get that amount? Work towards this amount and you won't be disappointed.

6.10 BE LEVEL-HEADED:
Invest wisely, don't get swayed by rumours and allow Indiabulls to be your guide at all times. Investment success won't happen overnight, so avoid overreacting to short term market swings.

39

ONLINE TRADING

40

ONLINE TRADING

7.1 PROCEDURE:
Just like offline trading, online trading also involves three main intermediaries and one ancillary institution. A broker, An exchange, Your bankers, and Your depository participant. In this form of trading, your broker provides you an Internet broking account which allows you to buy and sell shares at your convenience. To put it simply, the broker is providing an interface on the computer that acts like a broker. So you no longer have to call your broker to place a trade. Just go online to your account, select the shares you want to buy or sell and execute the trade! It's as simple as that. During this trade, your bankers provide the feature of transferring money from or to your bank account. The brokers then collect this trade information in real time using software at their end and forward it to the exchange. The exchange executes the trade and informs the broker. The broker in turn informs you and also ensures that your depository account gets updated; and in case of selling shares it places the
41

value of shares you sold in your account. You can transfer this amount back to your bank or use it for buying shares.

7.2 STEPS FOR TRADING ONLINE: There are three basic steps in trading online:
STEP I: Go to your broker and open an online account. During this stage you also need to take a depository account. STEP II: Ensure that you have a bank account with a bank that facilitates online transactions (i.e. allows for net banking). Most leading banks such as HDFC Bank and Citibank allow this. STEP III: Once you open an account, you get a username and password for checking your account details as well as another password for carrying out your actual transactions. This ensures a double layer of security. Using these details you go to your broker's website, log on to your account and start trading.

7.3 BENEFITS OF TRADING ONLINE?

Online trading is quite convenient for the following reasons:

Freedom from paperwork

Your online trading account is integrated with your bank, your depository and digital contracts. It thus eliminates all paperwork.

42

 Instant credit and transfer

Online trading gives you instant credit money transfer to and from your bank account, enabling you to trade surplus credit without delay.

Trade from anywhere

A major benefit of online trading is the facility of trading from anywhere. Even when you are in a new place, just connect to the Internet, log on to your account on indiabullssecurities.com and start trading.

Real-time portfolio tracking

Online trading provides auto update of trades executed by you and gives you real-time information on your investments and the current value of your portfolio. Indiabulls provides portfolio tracking service to its clients absolutely free of cost.

After-hour orders
You can place orders even when the market is closed. The order gets queued up and gets executed the next time the markets open.

Get live quotes

Online trading provides you live, minute-by-minute streaming quotes and using the software you can create appropriate filters to watch the movement of the stocks that you are interested in.

43

 Host of features a click away

Place limit orders, check your portfolio and calculate your earnings, check your depository account, transfer money from your bank to the broking account and vice versa, at just a click of your mouse.

44

Five Golden Rules For Investing In Share

45

FIVE GOLDEN RULES FORINVESTING IN SHARES

RULE 1: THINK PORTFOLIO:

While investing in shares one should not just invest in just one single stock. Always look at buying more than one company and build a portfolio.

RULE 2: DIVERSIFY YOUR PORTFOLIO:

All stocks in your portfolio should not belong to just one or two sectors. The portfolio approach calls for diversification amongst business like software, pharm, steel, cement, etc. Why is this important? Lets assume that you have 10 stocks in your portfolio and all of them belong to the steel industry. It is not a balanced portfolio because: The factors that affect the steel industry will take their toll on each of steel companies. Hence the portfolio is as risky as one with just one steel company. It may fail to give balanced returns because there is no diversification across various businesses.

46

RULE 3: DONT SPREAD YOUR NET TOO WIDE:

Ideally a portfolio should not have more than 15 or 20 stocks. As the number of stock keeps increasing, the portfolio becomes unmanageable. Your total returns may start reducing.

RULE 4: UNDERSTAND YOUR RISK PROFILE:

Portfolio creation is all about maximizing returns, given a risk profile and a time horizon. Your risk profile is a function of: Your age Ability to withstand losses Investment horizon (Time) Existing cash flows (income - expense) Experience and expectations from the market

RULE 5: SELECT STOCKS TO SUIT YOUR RISK - REWARD EXPECTATIONS:

Invest in stocks based on your risk profile Never get into a herd mentality

47

SERVICES

48

SERVICES

9.1 PORTFOLIO MANAGEMENT SYSTEM:

Can you analyze the prices of 1,500 shares every morning? Can you afford to gamble only on the recommendations from your friends and the information overload from magazines and financial dailies? And, of course, more importantly, if you happen to be a High Net worth Individual, do you have the time to judge which advice is reliable, authentic and has the least chance of failure? With the Indiabulls Team Managing Your Portfolio, you can be assured that your investments are in safe hands! We follow a multi-disciplined approach incorporating quantitative analysis, fundamental analysis and technical analysis. This multi-pronged approach enables us to provide risk-controlled returns for you. Right from choosing the combination of stocks most suitable for you based on your risk appetite to monitoring their movements and discussing them with you at special events.

9.2 COMMODITIES TRADING:

The process of economic liberalization in India began in 1991. As part of this process,

several capital market reforms were carried out by the capital market regulator Securities and Exchange Board of India. One such measure was to allow trading in equities-based derivatives on stock exchanges in 2000. This step proved to be a shot in the arm of the capital market and volumes soared within three years. The success of the capital market reforms motivated the

49

government and the Forward Market Commission (the commodities market regulator) to kick off similar reforms in the commodities market. Thus almost all the commodities were allowed to be traded in the futures market from April 2003. To make trading in commodity futures more transparent and successful, multi-commodity exchanges at national level were also conceived and these next generation exchanges were allowed to start futures trading in commodities online. Commodities exchanges have seen a surge in commodity futures volumes in the last few months. This rise in volumes has been led by bullion (gold and silver) trading. Today a whole lot of commodities are available for trading in futures and the list is getting bigger by the day. No wonder then that the commodity futures market is being viewed as a significant business segment by many businessmen, investors, institutions, brokers, banks. Of course there are still millions of Indians who are not aware that commodities other than gold and silver can also be traded in on commodity exchanges. Fewer still know that be traded online. Hence to educate Indian investors in the benefits of trading in commodities Indiabulls has decided to bring out a compilation of questions on the subject along with their answers. Demystifying Commodities seeks to cover every aspect of commodity trading and has been written in a language that is simple and lucid, a characteristic of Indiabulls. I am certain that Demystifying Commodities will go a long way in generating awareness about commodity trading among Indian investors. The various money-making trading strategies for the commodities market discussed in Demystifying Commodities will also be of immense help to those billion investors who are already trading in commodities.

50

How to Open an Commodity Account?

Need Rs 500 cheque in the name of "Indiabulls Commodity Ltd"

to open an account Latest bank act statement Xerox Identity proof Residential proof Trading in commodity exchange require 5-10 percentage margin money.

How do I trade in commodities?

You can place your orders through our dealers across all our branch/franchisee Toll free number 39708090 during the market hours between 10 am to 11.30 pm in summer & 10 am to 11.55 pm in winter. If you require terminal for mcx/ncdex or both need Rs. 1 lac as margin money, there is terminal fees asking by exchange i.e. Rs. 1000 each exchange/month.

9.3 SHARE SHOPS:

Get everything you need at aIndiabulls outlet all you have to do is walk into any of our 588 share shops across 213 cities in India to get a host of trading related services - our friendly customer service account related queries you may have.

51

AIndiabulls outlet offers the following services:

Online BSE and NSE executions (through BOLT and NEAT terminals) Free access to investment advice from Indiabulls research team Indiabulls Value Line (a fortnightly publication with reviews of recommendations, stocks to watch out for etc Daily research reports and market review (High Noon, Eagle Eye) Pre-market Report (Morning Cuppa) Daily trading calls based on technical analysis Cool trading products (Daring Derivatives, Trading Ring and Market Strategy) Personalized advice Live market information Depository services: Demit and Remit transactions Derivatives trading (Futures and Options) Internet-based online trading: Speed Trade, SpeedTradePlus

52

INDIABULLSOnline TradingInterfaces

53

INDIABULLS ONLINE TRADING INTERFACES

The customer can choose the online trading interface that meets his requirement based on his trading habits and preferences.

10.1 CLASSIC account:

Investing Online is so much easier! This account enables you to buy and sell shares through our website.

FEATURES OF CLASSIC ACCOUNT:

Facility to integrate choice of 7 Banks / DP / Trading Account Instant credit for shares sold from DP Automatic pick-up of shares from linked DP for Pay-in Automatic deposit of shares into linked DP after pay-out Times leverage on Margin Trades Margin Trading available for entire market session Slab wise brokerage structure for delivery and margin trades, shortly Free Calls for order placement on Toll-Free Trusted, professional advice of Tele-brokers Facility to enter After Market orders online & via phone Daily Research newsletter (Investor Eye) via e-mail Access to new IPO without any paperwork Advanced portfolio monitoring Tools

54

Integrated DP account with trading account Choice of linking 4 banks to trading a/c for online payments Cash and Derivatives trading in a single account E-mail confirmations for all transactions Choice of electronic / physical contracts

SYSTEM REQUIREMENTS:
You will need access to a computer which has at least the following configuration: Pentium 3 PC Minimum 128 MB RAM Windows 2000/XP Internet connection Internet Explorer 6.0

10.2 SPEEDTRADE:
The speedtrade is meant for customers who trade in Equities. The ideal tool for active traders and jobbers who transact frequently during the day's trading session, Speedtrade enables you to capitalize on intra-day price movements. Speedtrade is an Internet-based executable application that provides everything a trader needs on ONE screen.

55

FEATURES OF SPEED TRADE:

It contains all the features of classic account. In addition to all those features it contains the following features: Real-time streaming quotes using 2 Market Watches Trade Execution in 2-3 seconds Instant order / trade confirmations in the same window Hot keys similar to a Brokers Terminal Multiple Tic-by-Tic Intra-day charts with multiple indicators Availability of 2 ISP & 6 Servers ensuring maximum uptime Customized alerts based on Multiple Parameters Cancel All / Square Off All Facility Window for Top Gainers, Top Losers, most active updated Live.

SYSTEM REQUIREMENTS:
Pentium 3 PC Minimum 128 MB RAM Windows 2000/XP Internet connection Dial-up Modem/ Cable Modem JAVA enabled in IE Internet Explorer 6.0
56

10.3 DIAL-N-TRADE Toll Free:

Trade in Equity by using your phone! Free with your IndiabullsClassic Account, the Dialn-Trade service enables you to place orders for buying and selling shares through your telephone. All you have to do is dial any one of our two dedicated numbers (1-800-11-44-88), enter your TPIN number (which is provided at the time of opening your account) and on authentication you'll be directed to a telebroker who will buy and sell shares for you. The DNT is a value added services meant for all customers who want to transact but are not online

FEATURES OF DIAL-N-TRADE:
Dedicated Toll-Free number for Order placements Automatic fund transfer with phone banking* Simple and secure IVR based system for authentication No wait time. On entry of Phone Id & TPIN, the call is transferred Trusted, professional advice of Tel-brokers who offer undiluted Indiabulls Research Inputs After-hours order placement facility ** Transfer of money using phone banking is available with bank Between 9 a.m to 9:55 a.m and 3:30 p.m to 6 p.m

57

10.4 DOCUMENTS REQUIRED:

3 Passport size Photographs 1 Cheque of Rs.750 in Favour of Indiabulls commodities limited

Photo ID Proof

Residence Proof

Passport Pan Card Driving Licence Voter's ID MAPIN UIN Card

Passport (valid) Voter's ID Driving License (valid) Bank Statement Telephone Bill Electricity Bill Ration Card Flat Maintenance Bill Insurance Policy Leave-License/Purchase Agreement

58

RESEARCH METHODOLOGY
RESEARCH DESIGN

A research design is the specification of methods and procedures for acquiring the needed data to solve the problem.

TYPES OF RESEARCH DESIGN

The arrangement of conditions suitable for collection and analysis of data varies depending upon the type of research study.

1. Exploratory research design.

2. Descriptive research design.

3. Conclusive research design.

59

DESCRIPTIVE RESEARCH:
Descriptive study is a fact- finding investigation with adequate interpretation. It is the simplest type of research. It is more specific than an explanatory study, as it has focus on particular aspect of the problem studied. It is designed to get her descriptive information and provide information for formulating more sophisticated studies. Data are collected by using one or more appropriate method, observation, interviewing and mail questionnaire.

TYPE OF DATA USED:There are basically two types of Data Primary Data Secondary Data

PRIMARY DATA
Primary Data is first hand information that the researcher collects. It helps in collecting useful and most accurate information that is needed for the researcher to do his research.

SOURCES OF PRIMARY DATA: Questionnaire Interview Schedule

SECONDARY DATA
Secondary data is what the researcher collects from different sources. It also help researcher to get elaborate information to do his research.

60

SOURCES OF SECONDARY DATA: Internet Journals

TARGET GROUP/ POPULATION

As this research is based on Relationship Marketing my Target group is my Clients who are using the Services of Indiabulls Securities in Dealing with Capital Market.

Area of Study:- GURGOAN

61

DATA INTERPRETATION &ANALYSIS

62

In which professions are you engaged in? RESPONDENTS

Business Service Professional Entrepreneur TOTAL 25 10 10 5 50

PERCENTAGE
50% 20% 20% 10%

30 25 20 15 10 5 0 Business Service Professional Enterprenure

63

Interpretation:
50% of the respondents are Business Man 20% of the respondents are Service Man 20% of the respondents are Professionals 10% of the respondents are Entrepreneur

Inferences:
From the above survey most of the respondents are found to be business man by profession.

64

 Do you trade in Stock Market? RESPONDENTS

YES 39

PERCENTAGE
78%

NO

10%

EARLEAR, BUT NOW 6 STOPPED Total 50

12%

100%

40 35 30 25 20 15 10 5 0 Yes

39

No

Earlier But Now Stopped

Interpretations:
78% of the respondents trade in stock 10% of the respondents do not trade in stock

12% of the respondents trade earlier Inferences:

65

From the above survey most of the respondents trade in stock market.

How much is your income or your Credibility?

RESPONDENTS Between 1- 2 lac Between 2-3 lac Between 3-4 lac Above 4 lac TOTAL 10 20 15 5 50 PERCENTAGE 20 % 40 % 30 % 10 %

10%

20% 1 - 2 lac 2- 3 lac 3 - 4 lac Above 4 lac 40%

30%

66

Interpretation: 40% of the respondents are between 2- 3 lac 30% of the respondents are between 3-4 lacs 20% of the respondents are between 1-2 lacs 10% of the respondents are between above 4 lac Inferences: From the above survey most of the respondents falls under 2- 3 lac bracket.

67

 How much you trade in stock Market

RESPONDENTS 10,000 - 50,000 23 PERCENTAGE 46%

50,000 - 1,00,000

15

30%

1,00,000 - 1,50,000

Above 1,50,000

8%

16%

50

25 20

23

15 15 10 5 0 10,000 - 50,000 50,000 - 1,00,000 1,00,000 - 1,50,000 Above 1,50,000 8 4

68

Interpretation: 46% respondents invest 10,000-50,000 30% respondents invest 50,000- 1, 00,000 16% respondents invest 1, 00,000- 1, 50,000 8% respondents invest above 1, 50,000 Inferences: From the above survey most of the respondents invest 10,000- 50,000 in stock market.

69

 How much Return you Get after Investing?

RESPONDENTS Below 5% 5- 10 % 10- 15 % 15- 20 % TOTAL 10 27 9 4 50

PERCENTSGE 20% 54% 18% 8% 100%

30 25 20 15 10 5 0 >5% 5 - 10 % 10 - 15 % 15 - 20 %

70

Interpretation: 20% of the respondents get below 5% 54% of the respondents get 5- 10 % 18% of the respondents get 10 - 15 % 8% of the respondents get 15-20 % Inferences: From the above survey most of the respondents get 5- 10 % returns on their investments.

71

 What according to you is your risk level?

RESPONDENTS Highly Risky Average Moderate Risk free TOTAL 5 27 9 9 50

PRECENTSGES 10% 54% 18% 18%

5 Highly Risky Average Moderate Risk free 27

72

Interpretation: 10% of the respondents are highly risky 54% of the respondents are average 18% of the respondents are Moderate 18% of the respondents are risk free Inferences: From the above survey most of the respondents are average risk takers.

73

 Which mode of trading do you prefer?

RESPONDENTS PERCENTAGE

Online

19

38%

Offline

31

62%

TOTAL

50

100%

35 30 25 20 15 10 5 0 Online Offline

74

Interpretation: 38% of the respondents prefer online 62% of the respondents prefer offline Inferences: From the above survey most of the respondents prefer offline trading as they are new to stock market.

75

 What has been your investment experience in stocks?

RESPONDENTS PERCENTAGES

Excellent

10%

Good Average

12 20

24% 40%

Bad

13

26%

TOTAL

50

100%

20 18 16 14 12 10 8 6 4 2 0 Excelent Good Average Bad

76

Interpretation: 10% of the respondents feel excellent 24% of the respondents feel good 40% of the respondents feel average 26% of the respondents feel bad Inferences: From the above survey 40% of the respondents have an average investment experience in stock market.

77

 What extra services do you expect from your broker? RESPONDENTS Depository Marginal Financing P.M.S Trading Research All the above TOTAL 7 9 9 19 50 14% 18% 18% 38% 100% 2 4 PERCENTAGES 4% 8%

All the Above Research Trading P.M.F Marginal Financing Depository 0 2 5 10 15 4 7 9 9

19

20

78

Interpretation: 4% respondents prefer Depository service 8% respondents prefer Marginal Financing 14% respondents prefer P.M.S 18% respondents prefer Trading 18% respondents prefer research 38% respondents prefer all the above services Inferences: From the above survey most of the respondents prefer all services that any broker must provide to its clients.

79

 Are you satisfied with the service of your Broker House?

RESPONDENTS Yes No Cant Say TOTAL 27 5 18 50 PERCENTAGES 54% 10% 36% 100%

30 25 20 15 10 5 0 Yes

27

18

No

Can't Say

80

Interpretation: 54% of the respondents say yes 10% of the respondents say no 36% of the respondents say cant say Inferences: From the above survey 54% of the respondents are satisfied the services of their broker house.

81

 Rate the service according to your Criteria?

RESPONDENTS PERCENTAGES

Excellent

10%

Very good

15

30%

Good

21

42%

Poor

18%

TOTAL

50

100%

25 20 15 10 5 0 Excillent Very Good Good Poor

82

Interpretation: 10% of the respondents say excellent 30% of the respondents say very Good 42% of the respondents say Good 18% of the respondents say Poor Inferences: From the above survey most of the respondents rate good to the services provide by their broker house.

83

 Have you heard of Indiabulls Securities?

RESPONDENTS PERCENTAGES

Yes

44

88%

No

12%

TOTAL

50

100%

No, 6

Yes No

Yes, 44

84

Interpretation: 88% of the respondents know IndiabullsSecurities 12% of the respondents dont know about Indiabulls Securities Inferences: From the above survey most of the respondents know Indiabulls securities

85

FINDINGS
In this survey most of the questionnaires are filled from brokerage houses where clients sit on the terminal & trade in the stocks. As the data collected shows that people who mostly invest in the market are businessmen & service class person who dont have enough time to keep continuous watch on the market fluctuation so they need regular assistance from their relationship manager who is assigned to them so every company is suggested to enforce their relationship managers to stay in contact with their clients. There are some No answer in this survey because many time clients may be with his friend who dont trade in the market & that friend might be interested or not do the relationship manager in that brokerage firm must take some extra care for them. Here difference is because of the presence of the friend of client in the brokerage house who doesnt want to trade in the stock market because he might be afraid of losses or due to lack of resources. But if that friend has lack of time than the relationship manager has to give a proper assistance & dedication to that person so that friend can make himself to trade in the stocks. As technology increases most of the people have less time to spend on the other activities than their core business so most of the clients prefer online trading so they can put their bids whenever they want as 24*7. In the case of online trading clients are not need to be provided any kind of assistance from their relationship manager but if the dedicated relationship manager provide them a good assistance can put that relationship manager & that organization apart from their competitors. But even after the presence of internet some people like to trade through offline mode reasons might be lack of knowledge or cost sensitive as offline product is used to being at lower cost so here in offline that dedicated relationship manager has to be in contact with his client. Most of the people look for moderate return because of presence of risk well as the age

86

group changes the risk-taking factor as age increase people started investing in bonds where a fixed return is possible. As the data shows most of the people were satisfied with their brokers because they are giving them profits on their investment & they were ready to pay more to their brokers if they get some extra services.

87

RECOMMENDATION
The Recommendation which is to be suggested is as follow: Indiabulls securities should enhance the customer care department where queries can be timely solved. Indiabulls securities should provide more security to the existing and prospective clients Indiabullssecurities should build its BRAND Image more strong by increasing visibility There should be more banners posters pamphlets distribution in the market to increase the awareness level among the people It should provide regular and update market information Special attention need to be given to the delivery of monthly & fortnightly report to the clients Timely release of Brokerage & Fast redressed of clients grievance is a major plus if Indiabulls is looking to develop long term relationship with its clients Services should be more efficiently delivered to the prospective clients in order to develop a long term relationship with the clients.

88

CONCLUSION
In spite of the bleak and grim outlook the future of capital market it is growing at a very high pace. Taking this things into consideration there are lots of opportunity for the Broker House which already exist and which are due to enter in the Indian market. These are little awareness about Equity and Mutual funds in India people have accepted it as one of the major investment avenue. As people have entered in this particular investment avenue they have lost there money because of movement in the market which is below the par value and this has shaken the faith of investor in this particular avenue. Another reason for low investment in this sector is due to country most of the companies not performing well and also due to the scams that are taking place frequently Once people know about the benefit offered by it, Capital market will become one the sought after investment avenue. As far as other product marketed by Indiabulls is concerned they have a ready market. The only thing which is needed to focus on is that they should have a strong marketing strategy so that prompt service and availability of forms is made available to the investors at a short notice and if it keeps the traditional base for marketing in India which is a price sensitive. We can say that Indiabulls has a great future ahead. Indiabullshas emerged a very strong player in the field of distribution of financial product within a short period of one year in Northern India and is giving stiff competition to the entire player in the Jaipur & other parts. If the progress of Indiabulls goes in the same way then I can say that Indiabulls will going to emerge as a major player in the Capital market. They have much more potential to expand there business and market in India.

89

ANNEXURE

90

QUESTIONNARE
1. In which professions arssse you engaged in? Business Professional Service Entrepreneur

2. Do you trade in stock market? Yes No Earlier, But now Stopped

3. How much is your income or your Credibility? Between 1 lac to 2 Lac Between 3 lac to 4lac 4. How much you trade in stock Market? 10,000 50,000 1,00,000 1, 50,000 5. How much Return you Get after Investing? >5% 10-15% 5 10 % 15 20 % 50,000 1, 00,000 Above 1, 50,000 Between 2 Lac to 3 Lac Above 4 lac

6.

What according to you is your risk level? Average

Highly Risky

91

Moderate

Risk free

7. Which mode of trading do you prefer? Online trading Offline trading

8. What has been your investment experience in stocks? Excellent Average Good Bad

9. What extra services do you expect from your broker? a. Depository services b. Margin financing c. Portfolio management services d. Trading e. Research and Technical services f. All of the above

10. Are you satisfied with the service of your Broker House? Yes No Cant Say

92

11. Rate the service according to your Criteria? Excellent Good Very Good Poor

12. Have you heard of Indiabulls Securities? Yes No

93

BIBLIOGRAPHY
1. Varsha Kulkarni1 and NiveditaDeo Volatility of an Indian stock market: A Random matrix approach 2. Catriona Purfield, Hiroko Oura, Charles Kramer and Andreas Jobst Asian Equity Markets: Growth, Opportunities and Challenges 3 Forrest Capie, Terence C Mills , Geoffrey Wood Gold as hedge against Dollar 4. N. J. Yasaswy How gold stacks up as investment option 5. G. Vasudha Asst. Professor TKR Institute of Management & Science, Hyderabad Gold as an investment option 6. Financials text: Business line, Economic times

94