A PROJECT REPORT ON

BOMBAY STOCK EXCHANGE

SUBMITTED BY

STEPHANIE P. REBELLO
T.Y.B.M.S. [Semester V]

SUBMITTED TO

UNIVERSITY OF MUMBAI
ACADEMIC YEAR

2012-13
PROJECT GUIDE

MR. NAVEEN ROHATGI

ST. ANDREWS COLLEGE
BANDRA(W), MUMBAI - 400 050.

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CERTIFICATE
I, Mr. Naveen Rohatgi, hereby certify that Ms. Stephanie P. Rebello of St.
Andrews College of TYBMS [Semester V] has completed his project, titled
Bombay Stock Exchange in the academic year 2012-13. The information
submitted herein is true and original to the best of my knowledge.

___________
Signature of Project Guide

__________
Signature of Principal
Examiner

_____________
Signature of Coordinator

_____________
Signature of External

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DECLARATION
I, Ms. Stephanie P. Rebello , of St. Andrews College of TYBMS [Semester V]
hereby declare that I have completed my project, titled Bombay Stock Exchange
in the Academic Year 2012-13. The information submitted herein is true and
original to the best of my knowledge.

________________________
Signature of Student
[Stephanie P. Rebello]

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ACKNOWLEDGEMENT
Feeling gratitude and not expressing it is like wrapping a present and not giving it.
-William Arthur Ward
I have great pleasure in expressing my deep sense of gratitude to my guide Mr.Naveen Rohatgi
for his
Valuable and prompt guidance, without which this project would not have been a successful one.
I further thank him for lending a helping hand when it came to solving my problems related to
the project. This project would not have been possible without his valuable time and support.
I also thank The University of Mumbai for giving me an opportunity to undertake this project at
this final stage of my Bachelors in Management Studies, which has helped me a lot to gain more
knowledge about the current scenarios around me and boosted my morale and level of
confidence over making a successful 200 Mark project.
Last but not the least I extend my gratitude towards my parents, faculties and friends who
extended their whole hearted support towards the successful completion of this Project Work.
This project is an attempt to talk about the Bombay Stock Exchangeused as a part of the
Finance used by the Companies.

- Stephanie P. Rebello

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EXECUTIVE SUMMARY

India's oldest and first stock exchange: Mumbai (Bombay) Stock Exchange. Established
in 1875. More than 6,000 stocks listed.

Total number of stock exchanges in India: 22

They are in: Ahmedabad, Bangalore, Calcutta, Chennai, Delhi etc.

There is also a National Stock Exchange (NSE) which is located in Mumbai.

There is also an Over The Counter Exchange of India (OTCEI) which allows listing of
small and medium sized companies.

The regulatory agency which oversees the functioning of stock markets is the Securities
and Exchange Board of India (SEBI), which is also located in Bombay.

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INDEX
Serial
No.

Topics

Page No.

1
1.1
1.2
1.3

Introduction
Stock Market
Participants of Stock Market
Bombay Stock Exchange

8
8
10-11
12-15

Profile of BSE

16-17

Products and Services

18-25

Role of BSE

26-27

Functions of BSE

28-29

BSE-SENSEX

30

Objective of SENSEX

31

Calculation of SENSEX

32-33

SEBI

34-35

10

Compliance of BSE with SEBI

36-37

11
12
13
13.1

Primary Market
Secondary Market
SCAMS
THE HARSHAD MEHTA SCAM

13.2

38-39
40-43
44
44-47
48-49

THE KETAN PAREKH SCAM

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14

50
Dos and Don'ts in the market

15

Comparison between BSE and NSE

51-52

16

Awards and Recognition

53

17

Latest Article

54-55

18

Conclusion

56

19

BIBILIOGRAPHY

57

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INTRODUCTION TO STOCK MARKET

The Indian securities market is considered as one of the most promising emerging
markers. It is among the top eight markets in the world. The Stock Exchange, Mumbai, which
was established in 1875 as the Native Share and Stock Brokers Association, has evolved over
the years into its present status as the premier stock exchange of the country. At present 24

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exchanges operate all over India. These stock exchanges provide facilities for trading securities.
Securities market provides a common platform for transfer of funds to those who need them.
The Indian capital markets have witnessed tremendous change. There is hardly any
country that has witnessed such massive growth in its capital market. In the early 90s the
standard of our index when compared to others relating to market efficiency, safety and market
integrity was poor. It was considered the riskiest Index when compared to the others. The same
was the case in regard to its efficiency levels in trading and settlement systems. Even though the
capital market was in a poor state not many people appeared to be bothered about it. As India
was still developing and appeared to be in the bottom of various other development indicators,
no one seemed to bother.
However, the same cannot be said about the current state of the Indian capital markets.
There has been a colossal change in the use of technology and other trading and settlement
methods. These factors have helped increase efficiency and propel the Indian capital market way
ahead of many developed countries. The amazing thing here is that change in techniques hasnt
stopped right there. There is so much more that is yet to be come.
In several countries capital markets have improved in terms of quality and efficiency
continually over several decades before they could be bracketed with the top league of the best
capital markets of the world; however it took India just one decade.
There was a major disaster that struck the Indian financial system during 1991-92. During
this scam several banks-small and big, foreign and Indian, and public sector as well as private
sector-lost huge amount of money. The truth behind the scam was that the stockbrokers through
many deceitful ways took off money from the banking system. The equity prices were hugely
manipulated by several prominent brokers with the help of the money diverted form the banking
system. This was because the concerned stock exchanges did not bother to have regulatory
surveillance on these transactions.
It was because of this that it was felt to bring about necessary changes in the area of
capital markets so that such serious mishaps do not recur. The Government of India delegated
powers to SEBI under the Securities Contracts (Regulations) Act, 1956 and later to enact a
special legislation called SEBI Act.

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The government soon realized that empowering the SEBI wasnt enough as the
governance of the stock exchanges was very poor. The Government of India agreed to support
the lead taken by IDBI to set up a modern stock exchange that would help in introducing in India
best international practices, both in the areas of trading and settlement.
Thanks to this investors can trade from close to 400 cities and towns across the country
on a real time basis. Today, investors in distant parts of the country feel happy that they enjoy
equality with investors located in Mumbai as they also have the same type of access to the best
prices as are available to investors in Mumbai.

PARTICIPANTS OF STOCK MARKET

Understanding the psychology of the participants is the key to
knowing how they will behave when they are gripped by fear and greed. He who understands
this psychology is able to manipulate the markets by using the different participants at different
times. Now lets see what each one wants from the markets.

Government

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At this point when the world has become a global village and each country wants
to attract foreign capital, governments need booming markets. Stock markets are the barometer
of an economy. They send positive signals to foreign investors when they are in a bull phase.
Booming stock markets create confidence and spur the governments to go ahead with their
economic policies. No government likes depressed stock markets.

Regulator:
Appointed

by

the government, the regulator also like booming stock markets. A rising market is
evidence of good governance. It also results in additional revenue in the form of higher
transaction and service charges due to the increase in turnover.

Stock Exchanges :

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They facilitate stock transactions. During boom periods, incomes skyrocket by

way of transaction charges from brokers, listing fees, etc.

Banks
Their business increases with soaring stock markets as opportunities open up in

lending against stocks, margin trading, depository and custodial business, etc. The feel good
factor drives investors to banks for various financial services.

Companies
Rising markets lead to higher stock prices. The net worth of owners increase and
companies can mop up more capital for expansions. Financially healthy companies are able to
attract and retain good talent, and keep their shareholders happy

Stock Exchange being a very vast topic, we are focusing on-

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Introduction (All about BSE)

Bombay Stock Exchange is the oldest stock exchange in Asia What is now popularly known as
the BSE was established as "The Native Share & Stock Brokers Association" in 1875. Over the
past 135 years, BSE has facilitated the growth of the Indian corporate sector by providing it with
an efficient capital raising platform. Today, BSE is the world's number 1 exchange in the world
in terms of the number of listed companies (over 4900). It is the world's 5th most active in terms
of number of transactions handled through its electronic trading system. And it is in the top ten of
global exchanges in terms of the market capitalization of its listed companies (as of December
31, 2009). The companies listed on BSE command a total market capitalization of USD Trillion
1.28 as of February 2010.
BSE is the first exchange in India and the second in the world to obtain an ISO 9001:2000
certifications. The BSE Index, SENSEX, is India's first and most popular Stock Market
benchmark index. Exchange traded funds (ETF) on SENSEX, are listed on BSE and in Hong
Kong. Futures and options on the index are also traded at BSE.

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HISTORY OF BSE

The Bombay Stock Exchange was established in 1875 and was primarily called "The
Native Share & Stock Brokers Association". In 1956 It obtained recognition from the
Government of India under the Securities Contracts (Regulation) Act, 1956.It was the first stock
exchange in the country to obtain this recognition. The Exchange plays a vital role in the
development of the Indian capital market. Its index, the Sensex, is tracked worldwide. The
Bombay Stock Exchange was earlier set as an Association of Persons. Now the Exchange is demutualised and corporatised and it has been incorporated under the provisions of the Companies
Act, 1956, pursuant to the BSE (Corporatisation and Demutualisation) Scheme, 2005 notified by
the Securities and Exchange Board of India (SEBI).
The Board of Directors manages the Exchange. The Board comprises of eminent
professionals, representatives of Trading Members and the Managing Director of the Exchange.
The Board includes market intermediaries and is designed to benefit from the
participation of such intermediaries. The Board is responsible for formulating larger policy issues
and controls the whole stock exchange. The board forms committees and they are usually broadbased. The managing director and the management handle the day-to-day operations of the
Exchange.
The Exchange has a nation-wide reach with a presence in 417 cities and towns of India.
The systems and processes of the Exchange are designed to safeguard market integrity and
enhance transparency in operations. The Exchange provides an efficient and transparent market
for trading in equity, debt instruments and derivatives. The BSE's On Line Trading System
(BOLT) is a proprietary system of the Exchange and is BS 7799-2-2002 certified. The
surveillance and clearing & settlement functions of the Exchange are ISO 9001:2000 certified.

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While the BSE is now synonymous with Dalal Street, it wasnt always so. In the 1850s stock
broker meet under banyan trees - in front of the Town Hall, where Horniman Circle is now
situated. A decade later, the brokers moved their venue to the junction at Meadows Street and
Mahatma Gandhi Road. As the number of brokers increased, they had to shift from place to
place, and wherever they went, through sheer habit, they overflowed in to the streets. At last, in
1874, found a permanent place, and one that they could, quite literally, call their own. The new
place was, aptly, called Dalal Street.
BSE has played a pioneering role in the Indian Securities Market - one of the oldest in the
world. Much before actual legislations were enacted, BSE had formulated a set of Rules and
Regulations for the Indian Capital Markets. It also laid down best practices adopted by the Indian
Capital Markets after India gained its Independence.
The BSE SENSEX is the benchmark equity index that reflects the robustness of the
economy and finance.
The BSE has been

First in India to introduce Equity Derivatives

First in India to launch a Free Float Index

First in India to launch US dollar version of BSE Sensex

First in India to launch Exchange Enabled Internet Trading Platform

First in India to obtain ISO certification for Surveillance, Clearing & Settlement

BSE

On-Line

recognized

Trading
the

System

Information

(BOLT)
Security

has

been

awarded

Management

the

System

globally
standard

BS7799-2: 2002.

First to have an exclusive facility for financial training

Moved from Open Outcry to Electronic Trading

Another important accomplishment of BSE is the launch of a nationwide investor awareness

campaign Safe Investing in the Stock Market. It also promoted the securities market awareness
campaign of the Securities and Exchange Board of India.

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BSE with its long history of capital market development is fully geared to continue its
contributions to further the growth of the securities markets of the country, thus helping India
increase its sphere of influence in international financial markets.

PRFOILE OF BSE

Type

Stock Exchange

Location

Mumbai, India

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Owner

Bombay/Mumbai Stock Exchange Limited

Key people

MadhuKannan (M D & CEO)

Mr. JagdishKapoor ( NEC )

Currency

INR

No. of listings

6000

MarketCap

26,60,201 Cr (Dec 10, 2009)

Volume

2,252.02 Cr (2009)

Indexes

BSE Sensex

Website

www.bseindia.com

The Stock Exchange, Mumbai; popularly called The Bombay Stock Exchange, or BSE is
the oldest stock exchange in Asia. It is located at Dalal Street, Mumbai, India.

There are around 3,500 Indian companies listed with the stock exchange, and has a
significant trading volume. At October 2006, the market capitalization of the BSE was about
Rupees 33.4 trillion that is around 730 billion US dollars. The BSE SENSEX (SENSITIVE
INDEX), also called the "BSE 30", is a widely used market index in India and Asia. As of 2005,
it is among the five biggest stock exchanges in the world in terms of transactions volume.
Earlier an Association of Persons (AOP), the Exchange is now a demutualised and
corporatized entity incorporated under the provisions of the Companies Act, 1956.

In terms of organization structure, the Board formulates larger policy issues and exercises
over-all control. The committees constituted by the Board are broad-based. The Managing
Director and a management team of professionals manage the day-to-day operations of the
Exchange.

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PRODUCTS AND SERVICES

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Bombay
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EQUITY
The equity market is divided into:

A) Primary market
Fresh issue of shares and other securities are affected through the primary market. It
provides the issuers opportunity to issue securities, to raise resources to meet their requirements
of business. Equity issues can be effective at face value or at a premium or discount. Issues at
discount are rare and almost unheard of.

B) Secondary market
Investors can buy and sell securities in the secondary market. The securities are traded,
cleared and settled through intermediaries as per the prescribed regulatory framework under the
supervision of the SEBI.
The products available in these markets are:

i)

Stocks

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Stocks can be classified into many different categories. The two most fundamental categories of
stock are common stock and preferred stock.

ii)

Common Stock
Most shares of stock are called "common shares". If you own a share of common stock,

then you are a partial owner of the company. You are also entitled to certain voting rights
regarding company matters. Typically, common stock shareholders receive one vote per share to
elect the company's board of directors. The board of directors is the group of individuals that
represents the owners of the corporation and oversees major decisions for the company. Common
stock shareholders also receive voting rights regarding other company matters such as stock
splits and company objectives.

In addition to voting rights, common shareholders sometimes enjoy what are called
"preemptive rights." Preemptive rights allow common shareholders to maintain their
proportional ownership in the company in the event that the company issues another offering of
stock. This means that common shareholders with preemptive rights have the right but not the
obligation to purchase as many new shares of the stock as it would take to maintain their
proportional ownership in the company.
But although common stock entitles its holders to a number of different rights and
privileges, it does have one major drawback: common stock shareholders are the last in line to
receive the company's assets. This means that common stock shareholders receive dividend
payments only after all preferred shareholders have received their dividend payments. It also
means that if the company goes bankrupt, the common stock shareholders receive whatever
assets are left over only after all creditors, bondholders, and preferred shareholders have been
paid in full.
iii)

Preferred Stock

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The other fundamental category of stock is preferred stock. Like common stock,
preferred stock represents partial ownership in a company, although preferred stock shareholders
do not enjoy any of the voting rights of common stockholders. Also unlike common stock,
preferred stock pays a fixed dividend that does not fluctuate, although the company does not
have to pay this dividend if it lacks the financial ability to do so. The main benefit to owning
preferred stock is that you have a greater claim on the company's assets than common
stockholders.
Preferred shareholders always receive their dividends first and, in the event the company
goes bankrupt, preferred shareholders are paid off before common stockholders. In general, there
are four different types of preferred stock:

iv)

Cumulative:

These shares give their owners the right to "accumulate" dividend

payments that were skipped due to financial problems; if the company later resumes
paying dividends; cumulative shareholders receive their missed payments first.

v)

Non-Cumulative: These shares do not give their owners back payments for skipped
dividends.

vi)

Participating: These shares may receive higher than normal dividend payments if the
company turns a larger than expected profit.

vii)

Convertible:These shares may be converted into a specified number of shares of

common stock.
Since preferred shares carry fixed dividend payments, they tend to fluctuate in price far

less than common shares. This means that the opportunity for both large capital gains and large

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capital losses is limited. Because preferred stock, like bonds, has fixed payments and small price
fluctuations, it is sometimes referred to as a "hybrid security."

DERIVATIVES
In finance, a derivative is a financial instrument that is derived from an underlying asset's
value; rather than trade or exchange the asset itself. Market participants enter into an agreement
to exchange money, assets or some other value at some future date based on the underlying asset.
The exact terms of the derivative (the payments between the counterparties) depend on, but may
or may not exactly correspond to, the behaviour or performance of the underlying asset.
BSE on June 9, 2000 launched the first Exchange traded Index Derivative Contract that is
futures on the capital market benchmark index - the BSE Sensex.
In the sequence of product innovation, the exchange commenced trading in Index
Options on Sensex on June 1, 2001. Stock options were introduced on 31 stocks on July 9, 2001
and single stock futures were launched on November 9, 2002. September 13, 2004 marked
another milestone in the history of Indian Capital Markets, the day on which the Bombay Stock
Exchange launched Weekly Options, a unique product unparallel in derivatives markets, both
domestic and international. BSE permitted trading in weekly contracts in options in the shares of
four leading companies namely Reliance, Satyam, State Bank of India, and Tisco in addition to
the flagship index-Sensex.

Types of Derivative Products

A) Index Futures
A futures contract is a contract to buy or sell a specific security at a future date at an
agreed price. Index futures are usually cash settled and there is no underlying security or

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a stock, which is to be delivered to fulfill the obligations. As other derivatives, the

contract derives its value from the underlying index. The underlying indices will be the
various eligible indices and as permitted by the Regulator from time to time.

B) Index Options
Options contract give its holder the right, but not the obligation, to buy or sell something
on or before a specified date at a stated price.

C) Stock Futures
A stock futures contract is a standardized contract to buy or sell a specific stock at a
future date at an agreed price. Single stock futures are cash settled.

D) Stock Options
Options on Individual Stocks are options contracts where the underlying are individual
stocks. Based on eligibility criteria and subject to the approval from the regulator, stocks
are selected on which options are introduced. These contracts are cash settled and are
American style.

E) Weekly Options
Equity Futures & Options were introduced in India having a maximum life of 3 months.
These options expire on the last Thursday of the expiring month. There was a need felt in
the market for options of shorter maturity. To cater to this need of the market participants

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BSE launched weekly options on September 13, 2004 on 4 stocks and the BSE Sensex.
Weekly options have the same characteristics as that of the Monthly Stock Options
(Stocks and indices) except that these options settle on Friday of every week.

DEBENTURES
In finance, a debenture is a long-term debt instrument used by governments and large
companies to obtain funds. It is similar to a bond except the securitization conditions are
different.
A debenture is usually unsecured in the sense that there are no liens or pledges on specific
assets. It is however, secured by all properties not otherwise pledged. In the case of bankruptcy
debenture holders are considered general creditors.
The advantage of debentures to the issuer is they leave specific assets unencumbered, and
thereby leave them open for subsequent financing.Debentures are generally freely transferrable
by the debenture holder.

a) Debt Segment
Debt Markets are markets for the issuance, trading and settlement in fixed income
securities of various types and features. Fixed income securities can be issued by almost any
legal entity like Central and State Governments, Public Bodies, Statutory corporations, Banks
and Institutions and Corporate Bodies.

b) Fixed Income Instrument:

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Fixed Income securities are one of the most innovative and dynamic instruments evolved
in the financial system ever since the inception of money. Based as they are on the concept of
interest and time-value of money, Fixed Income securities personify the essence of innovation
and transformation, which have fueled the explosive growth of the financial markets over the
past few centuries.

Fixed Income securities offer one of the most attractive investment opportunities with
regard to safety of investments, adequate liquidity, and flexibility in structuring a portfolio, easier
monitoring, long-term reliability and decent returns. They are an essential component of any
portfolio of financial and real assets, whether in form of pure interest bearing bonds, innovative
and varied type of debt instruments or asset-backed mortgages and securitized instruments.

c) Bonds
In finance, a bond is a debt security, in which the issuer owes the holders a debt and is
obliged to repay the principal and interest (the coupon) at a later date, termed maturity. Other
stipulations may also be attached to the bond issue, such as the obligation for the issuer to
provide certain information to the bond holder, or limitations on the behavior of the issuer. Bonds
are generally issued for a fixed term (the maturity) longer than ten years. U.S Treasury securities
issued debt with life of ten years or more is a bond. New debt between one year and ten years is a
note, and new debt less than a year is a bill.

A bond is simply a loan, but in the form of a security, although terminology used is rather
different. The issuer is equivalent to the borrower, the bond holder to the lender, and the coupon
to the interest. Bonds enable the issuer to finance long-term investments with external funds.
Certificates of deposit (CDs) or commercial paper are considered money market instruments.

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Market participants normally use bonds for large issues offered to a wide public, and
notes for smaller issues originally sold to a limited number of investors. There are no clear
demarcations. There are also "bills" which usually denote fixed income securities with three
years or less, from the issue date, to maturity. Bonds have the highest risk, notes are the second
highest risk, and bills have the least risk. This is due to a statistical measure called duration,
where lower durations have less risk, and are associated with shorter-term obligations.

Bonds and stocks are both securities, but the difference is that stock holders own a part of
the issuing company (have an equity stake), whereas bond holders are in essence lenders to the
issuer. Also bonds usually have a defined term, or maturity, after which the bond is redeemed
whereas stocks may be outstanding indefinitely. An exception is a consol bond, which is
perpetuity (i.e. bond with no maturity).

ROLE OF BSE

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BSE is one of the factors Indian Economy depends upon. BSE has played a major role in
the development of the country. Through BSE, Foreign Investors have invested in India. Due to
inward flow of foreign currency the, the Indian economy have started showing the upward trend
towards the development of the country.

BSE provides employment for many people. Trading in BSE is also a business for a few,
their family income depends on it that is the reason why when scandals occur in the stock market
it not only affects the companies listed but also affects many families. In the few extreme cases,
it is observed that the bread winner of a family tends to suicide due to the losses occurred.

In most of major industrial cities all over the world, where the businesses were evolving
and required investment capital to grow and thrive, stock exchanges acted as the interface
between Suppliers and Consumers of capital. One of the key advantages of the stock exchanges
is that they are efficient medium for raising resources and channeling savings from the general
public by the way of issue of Equity / Debt Capital by joint stock companies which are listed on
stock exchanges.

Not to forget that the taxes and other statutory charges paid by BSE are substantial and
make a sizeable contribution to the Government exchequer (Financial resources; funds). For
example, transactions on the stock exchanges are subject to stamp duties, which is paid to the
State Government. The annual revenue from this source ranges from Rs 75 100 crores
With the opening up of the financial markets to Foreign Investors a number of foreign
institutional investors and brokers have established a sizeable presence in Mumbai.
With no doubt we can clearly state without BSE, the Indian Economy would have been a
complete different story. Various companies wouldnt have been a strong and successful as they
are today and the brokers and traders would have been elsewhere.

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BSE is an asset to our country and its existence plays a vital role in many peoples life
who depends on it. Indeed, BSE has made a major contribution to the industrial and economic
development of India.

FUNCTIONS OF BSE

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The Stock Market is a pivotal institution in the financial system. A well-ordered stock
market performs several economic functions:

It ensures the measure of safety and fair dealing

It performs an act of magic by translating short-term investments into

long-term funds for companies.

It directs the flow of capital in the most profitable channels.

It induces companies to raise their standard of performance.

It offers guidance to management about the cost of capital.

1) Measure of Safety and Fair Dealing:

The stock exchanges operate under a regulatory framework which seeks to protect
the interest of investors. The rules, regulations, and bye-laws of a stock exchange, which
are approved by the central government, are meant to ensure that a reasonable measure of
safety is provided to investors and transactions take place in competitive conditions which
are fair to all concerned.

2 )Act of Magic:
Most of the investors are interested in short-term investments. The requirements of
companies are, however, long-term in naturethey require equity capital on a more or less
permanent basis and debenture capital for 3 to 15 years. Thanks to the negotiability and
transferability of securities, through the stock market, it is possible for companies to obtain
their long-term requirements from investors with short-term horizons. While one investor is
substituted by another when a security is transacted, the company is assured of availability
of funds.
3) Flow of Capital in the Most Profitable Channels:

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Companies which have more profitable investment opportunities are normally able
to raise substantial funds through the stock market, whereas companies which do not have
such opportunities are normally not able to do so. As a result, the stock market facilitates
the direction of the flow of capital in the most profitable channels.

4) Inducement to Companies to Raise their Standard of Performance:

When the equity, capital of a company is listed on a stock exchange, the
performance of the company is reflected in the market price of the equity stock, which is
readily available for public consumption. Put differently, the companys performance is
more visible in the eyes of public. Such a public exposure normally induces companies to
raise their standard of performance.

5) Guidance of Cost of Capital:

The market value of the securities of company are required for computing its cost of
capital. Such values can be obtained from stock market quotations. Hence the stock market
offers guidance on cost of capital.

BSE SENSEX

The BSE SENSEX, short form of Sensitive Index, first compiled in 1986 is a market
Capitalization-Weighted index of 30 component stocks representing a sample of large, well-

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established and financially sound companies. The index is widely reported in both, the domestic
international, print electronic media and is widely used to measure the used to measure the
performance of the Indian stock markets.

The BSE SENSEX is the benchmark index of the Indian capital market and one, which
has the longest social memory. In fact the SENSEX is considered to be the pulse of the Indian
stock markets. It is the oldest index in India and has acquired a unique place in collective
consciousness of the investors. Further, as the oldest index of the Indian Stock Market, it
provides time series data over a fairly long period of time. Small wonder that the SENSEX has
over the years has become one of the most prominent brands of the Country.

OBJECTIVES OF SENSEX

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The SENSEX is the benchmark index of the Indian

Capital Markets with wide acceptance among individual
investors, institutional investors, foreign investors and
fund managers. The objectives of the index are:

1) To measure market movements

Given its long history and its wide acceptance, no other index matches the SENSEX in reflecting
market movements and sentiments. SENSEX is widely used to describe the mood in the Indian
Stock markets.
2) Benchmark for funds performance
The inclusion of blue chip companies and the wide and balanced industry representation in the
SENSEX makes it the ideal benchmark for fund managers to compare the performance of their
funds.

3) For index based derivative products

Institutional investors, money managers and small investors all refer to the SENSEX for their
specific purposes The SENSEX is in effect the proxy for the Indian stock markets. The country's
first derivative product i.e. Indexon SENSEX.

SENSEX Calculation

Futures was launched

33 | P a g e

SENSEX is calculated using a "Market Capitalization-Weighted" methodology. As per this

methodology, the level of index at any point of time reflects the total market value of 30
component stocks relative to a base period. (The market capitalization of a company is
determined by multiplying the price of its stock by the number of shares issued by the company).
An index of a set of a combined variables (such as price and number of shares) is commonly
referred as a 'Composite Index' by statisticians. A single indexed number is used to represent the
results of this calculation in order to make the value easier to work with and track over time. It is
much easier to graph a chart based on indexed values than one based on actual values.
The base period of SENSEX is 1978-79. The actual total market value of the stocks in
the Index during the base period has been set equal to an indexed value of 100. This is often
indicated by the notation 1978-79=100. The formula used to calculate the Index is fairly
straightforward. However, the calculation of the adjustments to the Index (commonly called
Index maintenance) is more complex.
The calculation of SENSEX involves dividing the total market capitalization of 30
companies in the Index by a number called the Index Divisor. The Divisor is the only link to the
original base period value of the SENSEX. It keeps the Index comparable over time and is the
adjustment point for all Index maintenance adjustments. During market hours, prices of the index
scrips, at which latest trades are executed, are used by the trading system to calculate SENSEX
every 15 seconds and disseminated in real time.

Calculation of closing Index

The closing SENSEX is computed taking the weighted average of all the trades on
SENSEX constituents in the last 15 minutes of trading session. If a SENSEX constituent has not
traded in the last 15 minutes, the last traded price is taken for computation of the Index closure.
If a SENSEX constituent has not traded at all in a day, then its last day's closing price is taken for

34 | P a g e

computation of Index closure. The use of Index Closure Algorithm prevents any intentional
manipulation of the closing index value.
The formula for adjusting the Base Market capitalization is as follows:
New
New

Market
Base

Market

capitalization

capitalization
=

Old

Base

Market

capitalization

--------------------------------------Old Market capitalization

To illustrate, suppose a company issues right shares which increases the market capitalization of
the shares of that company by say, Rs.100 crores. The existing Base Market capitalization (Old
Base Market capitalization), say, is Rs.2450 crores and the aggregate market capitalization of all
the shares included in the index before the right issue is made is, say Rs.4781 crore. The "New
Base Market capitalization " will then be:
2450 x (4781+100)
-------------------------- = Rs.2501.24 crores
4781
This figure of Rs. 2501.24 crore will be used as the Base Market capitalization for calculating
the index number from then onwards till the next base change becomes necessary.

SECURITIES AND EXCHANGE BOARD OF INDIA

The year 1991 witnessed a big push being given to liberalization and reforms in the
financial sector. For sometime thereafter, the volume of business in the primary and secondary
securities markets increased significantly. As a part of the same reform process, the globalisation
or internationalisation of the Indian financial system made it vulnerable to external shocks. The

35 | P a g e

multi-crore securities scam rocked the IFS in 1992. All these developments impressed on the
authorities the need to have in place a vigilant regulatory body or an effective and efficient
watchdog. It was felt that the then existing regulatory framework was fragmented, ill
coordinated, and inadequate and that there was a need for an autonomous, statutory, integrated
organization to ensure the smooth functioning of the IFS. The SEBI came into being as a
response to these requirements.
The SEBI was established on April 12, 1988 through an administrative order, but it
became a statutory and really powerful organization only since 1992. The CICA was repealed
and the office of the CCI was abolished in 1992, and the SEBI was set upon 21 February 1992
through an ordinance issued on 30 January 1992. The SEBI Act replaced the ordinance on 4
April 1992. Certain powers under certain sections of SCRA and CA have been delegated to the
SEBI. The regulatory powers of the SEBI were increased through the Securities Laws
(Amendment) Ordinance of January 1995, which was subsequently replaced by an Act of
Parliament. The SEBI is under the overall control of the Ministry of Finance, and has its head
office at Mumbai. It has now become a very important constituent of the financial regulatory
framework in India.

36 | P a g e

The

philosophy
underlying the creation of the SEBI is that multiple regulatory bodies for securities industry
mean that the regulatory system gets divided, causing confusion among market participants as to
who is really in command. In a multiple regulatory structure, there is also an overlap of functions
of different regulatory bodies. Through the SEBI, the regulation model which is sought to be put
in place in India is one in which every aspect of securities market regulation is entrusted to a
single highly visible and independent organization, which is backed by a statute, and which is
accountable to the Parliament and in which investors can have trust.

37 | P a g e

Compliance of BSE with SEBI

The Securities and Exchange Board of India (SEBI) Regulation Act 1992, has provided a
mechanism for inspection of member brokers. This has been done to find out whether they are
carrying on business in terms of the regulations provided and to determine whether the conduct
of the brokers are in the overall interest of the capital market. Stock Exchanges being selfregulatory organizations are responsible for ensuring that member brokers abide by the rules and
regulations.
According to the SEBI, every stock exchange has to inspect the books of accounts and
other documents of at least 20% of its member brokers and sub brokers every year.
For surveillance purpose a separate department called the Department for surveillance
and supervision (DOSS) has been set up by the stock exchange.

Need for Compliance

The Indian stock market has seen substantial growth since the early 90s. With this it has
also witnessed various scams. This shows various loopholes in the functioning of the capital
market. Therefore it is necessary that a regulatory system be placed to control the market. The
entire compliance strategy includes Risk Management, Client funding, Unique Client codes,
online supervision, Inspection etc.
Compliance not only provides a comfort zone for to the investors but it also provides
encouragement to the member brokers to trade effectively.

38 | P a g e

Usually it is at the member brokers level that many irregularities can be noticed. To
protect the investors, the SEBI (Stock Brokers and Sub brokers) Regulations, 1992 provides the
mechanism for inspection of the member broker. This is done to ascertain whether the registered
member brokers are carrying out the business in the overall interest of the capital market and
investors.
Member brokers have to comply with the procedures laid down by the exchange in order to safe
guard the interest of the investors. Strict compliances by the exchange provide a platform to
assure investors that their money is safe and well protected.
To understand why compliance is necessary we must first understand human psychology
and tendencies. Once a loophole is discovered in a system any person would try to manipulate it
to gain advantage and if it comes down to money the manipulation could lead to disastrous
effects. Therefore a certain set of rules and regulations are necessary to control the capital market
where a lot of money is involved.

Objectives of Inspection
1.

To bring about better level of compliance among stockbrokers and sub brokers.

2.

To check if proper books of records have been maintained by member brokers in

the

manner specified in Rule 15 of the Securities Contracts (Regulations) Rules, 1957 and
Regulations 17(1) of the Securities and Exchange Board of India, 1992.
3.

The member broker has complied by the byelaws and regulations set up by the exchange.

4.

The member brokers have compiled with all the circulars, notices, press releases, etc with
the Ministry of Finance, SEBI and Stock exchange.

5.

The conduct of the member broker is in the overall interest of the capital market.

39 | P a g e

PRIMARY MARKET

Public Limited Company.

Public Listed Company

Public Non-listed Company

Listed Company means a public ltd Co which is

--Listed on any one or more recognized stock exchanges in India.
--Securities (shares: debentures) of such company are traded on such stock exchanges.

Unlisted company therefore means a company whose securities are not listed on any of
recognized stock exchanges in India.

Why Companies get Listed with Stock Exchange?

Companies get listed with Stock Exchange for following reasons:

--Securities are freely transferable.

--Easy liquidity of securities.
--Easy availability of prices of securities.
--Reputation, Image, Goodwill.
--Public awareness.

40 | P a g e

--More transparency.
--Helps in obtaining loans from Banks/Institutions.
--Helps in marketing its Products.
In order to list securities of a company & get its shares traded on any recognized
stock exchanges, the Public Ltd Company may either come out wit ha public issue (i.e. to
offer further securities to public) or make an offer for sale of existing securities to public.
This can be done by issuing of Prospectus & Complying with all The Provinces of
Company Act 1956.

Each stock exchange has its own criteria for listing securities which should also be
met.
Eg: If company intends to get listed its securities in Bombay Stock Exchange, Mumbai post
issue capital (paid up capital after proposed public issue) of such companies should be Rs.
10 Croresatleast.

The Company enters into a listing agreement with concerned stock exchange & on
receipt of permission from concerned Stock Exchange, company is listed and securities are
thereafter traded on such stock exchange.

Corporates may raise capital in the primary market by way of an initial public offer,
rights issue or private placement. An Initial Public Offer (IPO) is the selling of securities to the
public in the primary market. This Initial Public Offering can be made through the fixed price
method, book building method or a combination of both.

41 | P a g e

SECONDARY MARKET

Demat Account is a compulsory Account for traders who want to trade in stock
market. This account is mainly used for buying and selling of shares.

Trading:
Each Stock Exchange has listed and permitted securities that are traded on it.
There are two ways of organizing the trading activity.

Open Outcry System

Under the open outcry system traders shout and resort to signals on the trading floor of the
exchange which consists of several notional trading posts for different securities. A
member (or his representative) wishing to buy or sell a certain security, reaches the trading
post where the security is traded. Here, he comes in contact with others interested in
transacting in that security. Buyers make their bid and sellers make their offers and bargains
are closed at mutually agreed-upon prices. In stock where jobbing is done, the jobber plays
an important role. He stands ready to buy or sell on his account. He quotes his bid (buying)
and ask (selling) prices. He provides some stability and continuity to the market.

42 | P a g e

Screen Based System

In the screen-based system the trading ring is replaced by the computer screen and distant
participants can trade with each other through the computer network. A large screen based
trading system (a) enhances the informational efficiency of the market as more participants
trade at a faster speed; (b) permits the market participants to get a full view of the market,
which increases their confidence in the market; and (c) establishes transparent audit trails.

43 | P a g e

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Settlement:
The

settlement

of

transactions

is

done

on

settlement period basis. Earlier,

the settlement period on the

Indian Stock Exchanges was 7

days, but now it is T+1

settlement. T+1 includes the day of trade and an additional day. During a settlement period,
buying and selling transactions in a particular security can be squared up. Square off is a
same day settlement cycle. At the end of settlement period, transactions are settled on net
basis. Since the settlement period used to be 7 days and the settlement is for the net
position, most of the transactions are squared within the settlement period. Clearly these
transactions are motivated by a desire to profit from price variations within the settlement
period.
Traditionally, trades have been settled by physical delivery. This means
that the securities have to physically move from the seller to the sellers broker, from the
sellers broker to the buyers broker (through the clearing house of the exchange or
directly), and from the buyers broker to the buyer. Further the buyer has to lodge the
securities with the transfer agents of the company and the process of the transfer may take
one to three months. This leads to high paperwork cost and creates bad paper risks.
To mitigate the cost and the risks associated with the physical delivery,
settlement in the developed securities market is mainly through electronic delivery
facilitated by depositories. A depository is an institution which immobilizes physical
certificates (of securities) and effect transfers of ownership by electronic book entry. A
beginning in the direction of electronic delivery has been made in India with the
establishment of the National Securities Depository Limited (NSDL), Indias first
depository, in 1996. As NSDL expands its operations and as new depositories come into
being, settlement will progressively be done more by electronic delivery and less by
physical delivery.

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SCAMS

THE HARSHAD MEHTA SCAM

HarshadShantilal Mehta was born in a Gujarati Jain family of modest means. His early
childhood was spent in Mumbai where his father was a small-time businessman. Later, the
family moved to Raipur in Madhya Pradesh after doctors advised his father to move to a
drier place on account of his indifferent health. But Raipur could not hold back Mehta for
long and he was back in the city after completing his schooling, much against his fathers
wishes.
Mehta first started working as a dispatch clerk in the New India Assurance
Company. Over the years, he got interested in the stock markets and along with brother
Ashwin, who by then had left his job with the Industrial Credit and Investment Corporation
of India, started investing heavily in the stock market.
As they learnt the ropes of the trade, they went from boom to bust a couple of times and
survived.
Mehta gradually rose to become a stock broker on the Bombay Stock Exchange,
who did very well for himself. At his peak, he lived almost like a movie star in a 15,000
square feet house, which had a swimming pool as well as a golf patch. He also had a taste
for flashy cars, which ultimately led to his downfall.
The year was 1990. Years had gone by and the driving ambitions of a young man
in the faceless crowd had been realised. Harshad Mehta was making waves in the stock
market. He had been buying shares heavily since the beginning of 1990.
The shares which attracted attention were those of Associated Cement Company
(ACC), write the authors. The price of ACC was bid up to Rs 10,000. For those who

46 | P a g e

asked, Mehta had the replacement cost theory as an explanation. The theory
basically argues that old companies should be valued on the basis of the amount
of money which would be required to create another such company.
Through the second half of 1991, Mehta was the darling of the business media and
earned the sobriquet of the Big Bull, who was said to have started the bull run. But, where
was Mehta getting his endless supply of money from? Nobody had a clue.
On April 23, 1992, journalist SuchetaDalal in a column in The Times of India,
exposed the dubious ways of HarshadMetha. The broker was dipping illegally into the
banking system to finance his buying.
In 1992, when I broke the story about the Rs 600 crore that he had swiped from the
State Bank of India, it was his visits to the banks headquarters in a flashy Toyota Lexus
that was the tip-off. Those days, the Lexus had just been launched in the international
market and importing it cost a neat package, Dalal wrote in one of her columns later.
The authors explain: The crucial mechanism through which the scam was effected
was the ready forward (RF) deal. The RF is in essence a secured short-term (typically 15day) loan from one bank to another. Crudely put, the bank lends against government
securities just as a pawnbroker lends against jewellery.The borrowing bank actually sells
the securities to the lending bank and buys them back at the end of the period of the loan,
typically at a slightly higher price.
It was this ready forward deal that Harshad Mehta and his cronies used with great
success to channel money from the banking system.
A typical ready forward deal involved two banks brought together by a broker in
lieu of a commission. The broker handles neither the cash nor the securities, though that
wasnt the case in the lead-up to the scam.

47 | P a g e

In this settlement process, deliveries of securities and payments were made

through the broker. That is, the seller handed over the securities to the broker, who passed
them to the buyer, while the buyer gave the cheque to the broker, who then made the
payment to the seller.
In this settlement process, the buyer and the seller might not even know whom they
had traded with, either being know only to the broker.
This the brokers could manage primarily because by now they had become market
makers and had started trading on their account. To keep up a semblance of legality, they
pretended to be undertaking the transactions on behalf of a bank.
Another instrument used in a big way was the bank receipt (BR). In a ready forward
deal, securities were not moved back and forth in actuality. Instead, the borrower, i.e. the
seller of securities, gave the buyer of the securities a BR.
As the authors write, a BR confirms the sale of securities. It acts as a receipt for the
money received by the selling bank. Hence the name - bank receipt. It promises to deliver
the securities to the buyer. It also states that in the mean time, the seller holds the securities
in trust of the buyer.
Having figured this out, Metha needed banks, which could issue fake BRs, or BRs
not backed by any government securities. Two small and little known banks - the Bank of
Karad (BOK) and the Metorpolitan Co-operative Bank (MCB) - came in handy for this
purpose. These banks were willing to issue BRs as and when required, for a fee, the
authors point out.
Once these fake BRs were issued, they were passed on to other banks and the banks
in turn gave money to Mehta, obviously assuming that they were lending against
government securities when this was not really the case. This money was used to drive up
the prices of stocks in the stock market. When time came to return the money, the shares
were sold for a profit and the BR was retired. The money due to the bank was returned.
The game went on as long as the stock prices kept going up, and no one had a clue
about Mehtas modus operandi. Once the scam was exposed, though, a lot of banks were

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left holding BRs which did not have any value - the banking system had been swindled of a
whopping Rs 4,000 crore.
Mehta made a brief comeback as a stock market guru, giving tips on his own
website as well as a weekly newspaper column. This time around, he was in cahoots with
owners of a few companies and recommended only those shares. This game, too, did not
last long.

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THE KETAN PAREKH SCAM

Ketan Parekh was a graduate from HR College and CA by profession. Ketan Parekhs
scam was often referred to as the one-man army or Pentafour Bull. The 176-pointSensexcrash on
March 1, 2001 came as a major shock for the Government of India, the stock markets and the
investors alike

This sudden crash in the stock markets prompted the Securities Exchange Board of India
(SEBI) to launch immediate investigations into the volatility of stock markets.
The scam shook the investor's confidence in the overall functioning of the stock markets. By the
end of March 2001, at least eight people were reported to have committed suicide and hundreds
of investors were driven to the brink of bankruptcy.

The first arrest in the scam was of the noted bull, Ketan Parekh (KP), on March 30, 2001,
by the Central Bureau of Investigation (CBI). Soon, reports abounded as to how KP had single
handedly caused one of the biggest scams in the history of Indian financial markets. He was
charged with defrauding Bank of India (BoI) of about $30 million among other charges.

KP's arrest was followed by yet another panic run on the bourses and the Sensex fell by
147 points. By this time, the scam had become the 'talk of the nation,' with intensive media
coverage and unprecedented public outcry.

50 | P a g e

Bank of India along with Punjab National Bank and SBI were at the receiving end.
Madhavapura Bank and Classic Cooperative Bank are the others affected. Ketan Parekh owes
around Rs1.3bn to the Bank of India

KPs scam was one of the major scam in India after Harshad Mehta which lost the confidence of
investors in investing in share market. KPs scam is also regarded as one mans army scam.

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Dos and Don'ts in the market

Dos

Always check all information when trading.

Have a proper investment plan.

Invest wisely and prudently.

Be aware of a stock's true value.

Take the time to understand stock market principles, practices, cycles, and its ups and
downs.

Know your strengths and weaknesses.

Protect your portfolio and share capital.

Minimise your risk, and maximize your returns.

Donts

Make the same mistakes.

Follow-the-crowd without doing sufficient research.

Invest following your emotions.

Be impatient.

Be greedy.

Invest in one place. Diversify your investments.

Over-borrow. Loan repayment is not an investment.

52 | P a g e

Listen to rumors.

Comparison
between
Bombay
Stock Exchange and National Stock
Exchange

Serial
1

Criteria
Capital
Required(Paid-Up)

BSE
Minimum
crores

Market
Capitalisation

MINIMUM
2
TIMES OF PAIDUPCAPITAL

MINIMUM
25CRORES

At-least last 3 year

s

N.A.

Profit
MakingRecord

Net
WorthRequired

Capital
Required(Paid-Up)
5
Market

10

The net worth of

thecompany
has
notbeen wiped out
bythe
accumulatedlosses
resulting
in
anegative net worth

Minimum 20 cr.

MINIMUM
3CRORES
MINIMUM

NSE
Minimum 10 crores

MINIMUM
10CRORES
2

MINIMUM

53 | P a g e

Capitalization

Profit
Record

Net
Required

10

Making

Worth

Dividend paying
track record

Listing Record

TIMES OF PAIDUP CAPITAL

At-least last
3
years
Minimum 20 cr.

25CRORES
At-least two out
of the last three
financial years
Minimum 50 cr.

Minimum 3 years

Minimum 2 out of
the
last
3
immediately
preceding financial
years

At-least
two
years listing record
with any Regional
Stock Exchange

At-least
three
years listing record
with any Regional
Stock Exchange.

54 | P a g e

Awards & Recognitions

As a pioneering financial institution in the Indian capital market, BSE has won several awards
and recognitions that acknowledge the work done and progress made.

The Golden Peacock Global CSR Award for its initiatives in Corporate Social
Responsibility

BSE has won NASSCOM - CNBC-TV18s IT User Awards, 2010 in Financial Services
category

BSE has won Skoch Virtual Corporation 2010 Award in the BSE StAR MF category

Responsibility Award (CSR), by the World Council of Corporate Governance

Annual Reports and Accounts of BSE have been awarded the ICAI awards for excellence
in financial reporting for four consecutive years from 2006 onwards

Human Resource Management at BSE has won the Asia - Pacific HRM awards for its
efforts in employer branding through talent management at work, health management at
work and excellence in HR through technology

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LATEST ARTICLE OF BOMBAY STOCK EXCHANGE

BSE plans IPO in H1 2013, shareholders question growth strategy

\

56 | P a g e

BSE plans IPO in H1 2013, shareholders question growth strategy

MUMBAI: India's oldest and premier stock exchange BSE is planning an initial public
offering ( IPO) in the first half of 2013, said BSE chairman at its annual general meeting
(AGM) held on Friday.
The bourse has formed a committee to finalise the public issue, but the final decision to
float the issue will be based on market conditions, said BSE non-executive chairman S
Ramadorai.
"The DRHP will be final in the next 7-9 months. A final decision will be taken based on
market sentiments," said Ramadorai in the AGM, which was a stormy affair as the
exchange's shareholders raised concerns over its falling market share and scepticism over
its strategy ahead of the entry of new stock exchange - MCX-SX.
Shareholders have also raised questions about the progress of BSE's ongoing marketmaking scheme to boost its derivatives segment.
The exchange's liquidity enhancement scheme, worth about Rs 60 crore till March 2012,
which was launched last year, has lifted activity in its futures and options segment, but it
has not been able to attract a wider base of investors.
"The exchange has spent around Rs 45 crore for acquiring Marketplace Technologies and
around Rs 60 crore on the liquidity enhancement scheme. However, the benefits are not
visible," said a shareholder. "It also acquired 15 per cent in United Stock Exchange (USE).
Kindly see the reserves are not frittered away," he added.
AshishkumarChauhan, BSE's interim CEO, told shareholders that a new CEO has been
appointed for USE.
Talking about the liquidity enhancement scheme, he said it has worked well and helped us
gain market share. "Incentive, as part of the turnover, has gone down to miniscule levels,"
Chauhan added.
Assuring shareholders that efforts are on to improve the exchange's turnover, Ramadorai
also said that a selection committee has been set up for the appointment of a CEO. The
Bombay Stock Exchange's hiefexeccutive officer's post has been vacant after
MadhuKannan quit the exchange to join Tata Group.
Responding to veteran broker KR Choksey's query on how the exchange is preparing to
compete with MCX-SX, Chauhan said, "When new exchanges come, they make a lot of
noise. But BSE will be at the forefront. We will work to get our fair share. The exchange is
trying to reduce the cost of trading."

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In response to a proposal from a shareholder to merge BSE with MCX, Chauhan said,
"This issue will be considered at a different time and forum."
The AGM also marked the exit of three trading member directors-Uttam Bagri, Deena
Mehta and Anil Shah- from the BSE board because new Sebi norms bar induction of
trading members on the stock exchange boards.

CONCLUSION
With the increasing Globalization, the Stock Exchanges have tremendously affected the
financial conditions of India.
The stock markets of the future will have a redefined pupose and reinvented architecture
due to the advent and widespread use of technology. Information and stock price
quotations are available almost instantaneously, and, more importantly, investors can act on
this data by executing a trade from anywhere at anytime. This new market will bring
benefits to investors, the listed companies, and the economies of the company. Trading will
become cheaper, faster and settlement will be simpler wit reduced risk. Raising capital for
companies will become easier, thereby contributing directly to the Economic Growth.
Already, BSE has shown its proactive response by increasingly using leading edge to
technologies to effectively compete in the global environment. In the not too distant future,
once full capital account convertibility is permitted in India, one could well witness an
expansion of trading volumes and its resultant economic benefits to the thriving and ever
young metropolis of Mumbai.
Inspite of all these positive predictions, the future of Stock Exchanges is likely to be
uncertain and even their survival is a major question mark.

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BIBILIOGRAPHY
Books
Dalal Street Journal Maximise your return on investment

Magazines and publications:

Business world articles and interview.

Business India articles.

Mint Newspaper all India investor survey.

2. Internet sites:

59 | P a g e

www.mutualfundsindia.com

www.mfmarketnews.com

www.indiainfoline.com

www.etstrategicmarketing.com

www.standardcharteredmf.com

www.marketresearch.com

http://www.iloveindia.com/finance/indian-mutual-funds/kotak-mahindra.html

http://www.iloveindia.com/finance/indian-mutual-funds/reliance.html

www.utimf.com/

www.bseindia.com
www.economictimes.com

www.wikipedia.com

www.epaper.timesofindia.com