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Stock Exchange Online Share Trading At Sharekhan

Prepared and presented to








Roll no: 70716659316



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A lot of effort has gone into this training report. My thanks are due to many people

with whom I have been closely associated.

I would like all those who have contributed in completing this project. First of all, I

would like to send my sincere thanks to Mr. YOGESH KUMAR for his helpful hand

in the completion of my project.

I would like to thank my entire beloved family & friends for providing me monetary

as well as non – monetary support, as and when required, without which this project

would not have completed on time. Their trust and patience is now coming out in

form of this thesis


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Description Page No.

Acknowledgement (i) (i)
Contents with page no. (ii)
List of tables (iii)
List of figures (iii)
Executive Summary 5
Certificate of completion 7
Introduction to topic 8
Objectives 16
Literature review 15
Sharkhan 32
Research Methodology 32
Analysis & Interpretation 58
Findings & Inferences 69
Limitations 71
Recommendations and Conclusion 72
Appendices 73
Bibliography 79

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After the securities are issued in the primary market, they are traded in the
secondary market by the investors. The stock exchanges along with a host of other
intermediaries provide the necessary platform for trading in secondary market and
also for clearing and settlement. The securities are traded, cleared and settled
within the regulatory framework prescribed by the Exchanges and the SEBI.

With the increased application of information technology, the trading platforms of

stock Exchanges are accessible from anywhere in the country through their trading
terminals. The trading platforms are also accessible through internet. In a
geographically widespread country like India, this has significantly expanded the
reach of the exchanges. The relation between the primary market and the secondary
market is inseparable and the latter provides the much-needed leverage to the former.
One of the ways in which the secondary market fulfils this task is by providing
liquidity to the securities issued by corporates. Liquidity is the ability to buy or sell an
asset readily, at low cost and without substantial impact on its price. Some prefer the
term marketability instead of liquidity. But, nonetheless, the point is that in the
absence of stock exchanges savers would simply hold on to their savings either as
cash or in the banks as they will not be able to liquidate their investments or adjust
their portfolios. Secondary markets also provide safety to the investing public and
therefore, are instrumental in spreading the equity cult and savings habits- it enables
the public to put their money in securities instead of investing in small firms whose
integrity and competence they would never judge themselves accurately. Secondary
markets also reduce the cost of capital for the firms raising capital since the investors
are willing to accept a lower return on more liquid investments.

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My next argument is based on the well-known precept that secondary markets are a
barometer of the economy. The hypothesis of the efficiency of stock markets is the
cornerstone of finance wherein security prices are supposed to reflect, quickly and
unbiasedly, the impact of the occurrence of any major economic event. A booming
and smoothly functioning stock market is indicative of a healthy primary market, in
the absence of which the capital raising activities of the industrial sector can suffer a
great setback. As such, the secondary markets are expected to reflect the investment
climate prevailing in the country at any point of time.
Price discovery is one of the central functions of secondary markets. By providing the
actual prices at which trading takes place, they furnish very close estimates of the
inherent current value of these securities. Further, derivatives’ trading provides
information concerning expected future prices of a myriad of commodities,
currencies, precious metals, interest rates etc.
Secondary markets also enable corporates to figure out how well their issues will be
received before they actually put them on the market. Remember Lord Keynes used
to talk about animal instinct- that is investor sentiment. Nothing can help corporates
better than stock markets in gauging if investors are in a mood to respond actively to
new issues or not- and this gives them the ability to plan their capital raising activities
more efficiently.
Now that we have established that a strong and vigorous secondary market is essential
for an active and profitable primary market, its time to begin an analysis of the current
state of our stock market.

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The investment decision

In many cases, for example R&D projects, a project may open (or close) paths of

action to the company, but this reality will not typically be captured in a strict NPV

approach. Management will therefore (sometimes) employ tools which place an

explicit value on these options. So, whereas in a DCF valuation the most likely or

average or scenario specific cash flows are discounted, here the “flexibile and staged

nature” of the investment is modelled, and hence "all" potential payoffs are

considered. The difference between the two valuations is the "value of flexibility"

inherent in the project.

The two most common tools are Decision Tree Analysis (DTA) and Real options

analysis (ROA):

DTA values flexibility by incorporating possible events (or states) and consequent

management decisions. In the decision tree, each management decision in response to

an "event" generates a "branch" or "path" which the company could follow; the

probabilities of each event are determined or specified by management. Once the tree

is constructed: (1) "all" possible events and their resultant paths are visible to

management; (2) given this “knowledge” of the events that could follow, management

chooses the actions corresponding to the highest value path probability weighted; (3)

(assuming rational decision making) this path is then taken as representative of project

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value. See Decision theory: Choice under uncertainty. (For example, a company

would build a factory given that demand for its product exceeded a certain level

during the pilot-phase, and outsource production otherwise. In turn, given further

demand, it would similarly expand the factory, and maintain it otherwise. In a DCF

model, by contrast, there is no "branching" - each scenario must be modelled


ROA is used when the value of a project is contingent on the value of some other

asset or underlying variable. Here, using financial option theory as a framework, the

decision to be taken is identified as corresponding to either a call option or a put

option - valuation is then via the Binomial model or, less often for this purpose, via

Black Scholes; see Contingent claim valuation. The "true" value of the project is then

the NPV of the "most likely" scenario plus the option value. (For example, the

viability of a mining project is contingent on the price of gold; if the price is too low,

management will abandon the mining rights, if sufficiently high, management will

develop the ore body. Again, a DCF valuation would capture only one of these


Quantifying uncertainty

Given the uncertainty inherent in project forecasting and valuation, analysts will wish

to assess the sensitivity of project NPV to the various inputs (i.e. assumptions) to the

DCF model. In a typical sensitivity analysis the analyst will vary one key factor while

holding all other inputs constant, ceteris paribus. The sensitivity of NPV to a change

in that factor is then observed (calculated as Δ NPV / Δ factor). For example, the

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analyst will set annual revenue growth rates at 5% for "Worst Case", 10% for "Likely

Case" and 25% for "Best Case" - and produce three corresponding NPVs.

Using a related technique, analysts may also run scenario based forecasts so as to

observe the value of the project under various outcomes. Under this technique, a

scenario comprises a particular outcome for economy-wide, "global" factors

(exchange rates, commodity prices, etc...) as well as for company-specific factors

(revenue growth rates, unit costs, etc...). Here, extending the example above, key

inputs in addition to growth are also adjusted, and NPV is calculated for the various

scenarios. Analysts then plot these results to produce a "value-surface" (or even a

"value-space"), where NPV is a function of several variables. Another application of

this methodology is to determine an "unbiased NPV", where management determines

a (subjective) probability for each scenario - the NPV for the project is then the

probability-weighted average of the various scenarios. Note that for scenario based

analysis, the various combinations of inputs must be internally consistent, whereas for

the sensitivity approach these need not be so.

A further advancement is to construct stochastic or probabilistic financial models - as

opposed to the traditional static and deterministic models as above. For this purpose,

the most common method is to use Monte Carlo simulation to analyze the project’s

NPV. This method was introduced to finance by David B. Hertz in 1964, although has

only recently become common; today analysts are even able to run simulations in

spreadsheet based DCF models, typically using an add-in, such as Crystal Ball.

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Using simulation, the cash flow components that are (heavily) impacted by

uncertainty are simulated, mathematically reflecting their "random characteristics".

The simulation produces several thousand trials (in contrast to the scenario approach

above) and outputs a histogram of project NPV. The average NPV of the potential

investment - as well as its volatility and other sensitivities - is then observed. This

histogram provides information not visible from the static DCF: for example, it allows

for an estimate of the probability that a project has a net present value greater than

zero (or any other value). See: Monte Carlo Simulation versus “What If” Scenarios.

Here, continuing the above example, instead of assigning three discrete values to

revenue growth, the analyst would assign an appropriate probability distribution

(commonly triangular or beta). This distribution - and that of the other sources of

uncertainty - would then be "sampled" repeatedly so as to generate the several

thousand realistic (but random) scenarios, and the output is a realistic, representative

set of valuations. The resultant statistics (average NPV and standard deviation of

NPV) will be a more accurate mirror of the project's "randomness" than the variance

observed under the traditional scenario based approach.

The financing decision

Achieving the goals of corporate finance requires that any corporate investment be

financed appropriately. As above, since both hurdle rate and cash flows (and hence

the riskiness of the firm) will be affected, the financing mix can impact the valuation.

Management must therefore identify the "optimal mix" of financing—the capital

structure that results in maximum value. (See Balance sheet, WACC, Fisher

separation theorem; but, see also the Modigliani-Miller theorem.)

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The sources of financing will, generically, comprise some combination of debt and

equity. Financing a project through debt results in a liability that must be serviced—

and hence there are cash flow implications regardless of the project's success. Equity

financing is less risky in the sense of cash flow commitments, but results in a dilution

of ownership and earnings. The cost of equity is also typically higher than the cost of

debt (see CAPM and WACC), and so equity financing may result in an increased

hurdle rate which may offset any reduction in cash flow risk.Management must also

attempt to match the financing mix to the asset being financed as closely as possible,

in terms of both timing and cash flows.One of the main theories of how firms make

their financing decisions is the Pecking Order Theory, which suggests that firms avoid

external financing while they have internal financing available and avoid new equity

financing while they can engage in new debt financing at reasonably low interest

rates. Another major theory is the Trade-Off Theory in which firms are assumed to

trade-off the tax benefits of debt with the bankruptcy costs of debt when making their

decisions. An emerging area in finance theory is right-financing whereby investment

banks and corporations can enhance investment return and company value over time

by determining the right investment objectives, policy framework, institutional

structure, source of financing (debt or equity) and expenditure framework within a

given economy and under given market conditions. One last theory about this

decision is the Market timing hypothesis which states that firms look for the cheaper

type of financing regardless of their current levels of internal resources, debt and


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The dividend decision

The dividend is calculated mainly on the basis of the company's unappropriated profit

and its business prospects for the coming year. If there are no NPV positive

opportunities, i.e. where returns exceed the hurdle rate, then management must return

excess cash to investors. These free cash flows comprise cash remaining after all

business expenses have been met.

This is the general case, however there are exceptions. For example, investors in a

"Growth stock", expect that the company will, almost by definition, retain earnings so

as to fund growth internally. In other cases, even though an opportunity is currently

NPV negative, management may consider “investment flexibility” / potential payoffs

and decide to retain cash flows; see above and Real options.

Management must also decide on the form of the distribution, generally as cash

dividends or via a share buyback. There are various considerations: where

shareholders pay tax on dividends, companies may elect to retain earnings, or to

perform a stock buyback, in both cases increasing the value of shares outstanding;

some companies will pay "dividends" from stock rather than in cash; see Corporate

action. Today, it is generally accepted that dividend policy is value neutral (see

Modigliani-Miller theorem).

Working capital management

Decisions relating to working capital and short term financing are referred to as

working capital management. These involve managing the relationship between a

firm's short-term assets and its short-term liabilities.

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As above, the goal of Corporate Finance is the maximization of firm value. In the

context of long term, capital investment decisions, firm value is enhanced through

appropriately selecting and funding NPV positive investments. These investments, in

turn, have implications in terms of cash flow and cost of capital.

The goal of Working capital management is therefore to ensure that the firm is able to

operate, and that it has sufficient cash flow to service long term debt, and to satisfy

both maturing short-term debt and upcoming operational expenses. In so doing, firm

value is enhanced when, and if, the return on capital exceeds the cost of capital; See

Economic value added (EVA).

Decision criteria

Working capital is the amount of capital which is readily available to an organization.

That is, working capital is the difference between resources in cash or readily

convertible into cash (Current Assets), and cash requirements (Current Liabilities). As

a result, the decisions relating to working capital are always current decisions, i.e.,

short term decisions.

In addition to time horizon, working capital decisions differ from capital investment

decisions in terms of discounting considerations and liquidity; they are also

"reversible" to some extent. (Considerations as to Risk appetite and return targets

remain identical). These decisions are therefore not taken on the same basis as long

term decisions, and different criteria are applied here: the main considerations are

cash flow and profitability; cashflow is probably the more important of the two.

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The most widely used measure of cash flow is the net operating cycle, or cash

conversion cycle. This represents the time difference between cash payment for raw

materials and cash collection for sales. The cash conversion cycle indicates the firm's

ability to convert its resources into cash. Because this number effectively corresponds

to the time that the firm's cash is tied up in operations and unavailable for other

activities, management generally aims at a low net count. (Another measure is gross

operating cycle which is the same as net operating cycle except that it does not take

into account the creditors deferral period.)

In this context, the most useful measure of profitability is Return on capital (ROC).

The result is shown as a percentage, determined by dividing relevant income for the

12 months by capital employed; Return on equity (ROE) shows this result for the

firm's shareholders. As above, firm value is enhanced when, and if, the return on

capital, exceeds the cost of capital. ROC measures are therefore useful as a

management tool, in that they link short-term policy with long-term decision making.

Management of working capital

Guided by the above criteria, management will use a combination of policies and

techniques for the management of working capital. These policies aim at managing

the current assets (generally cash and cash equivalents, inventories and debtors) and

the short term financing, such that cash flows and returns are acceptable.

Cash management. Identify the cash balance which allows for the business to meet

day to day expenses, but reduces cash holding costs.

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Inventory management. Identify the level of inventory which allows for uninterrupted

production but reduces the investment in raw materials - and minimizes reordering

costs - and hence increases cash flow; see Supply chain management; Just In Time

(JIT); Economic order quantity (EOQ); Economic production quantity (EPQ).

Debtors management. Identify the appropriate credit policy, i.e. credit terms which

will attract customers, such that any impact on cash flows and the cash conversion

cycle will be offset by increased revenue and hence Return on Capital (or vice versa);

see Discounts and allowances.

Short term financing. Identify the appropriate source of financing, given the cash

conversion cycle: the inventory is ideally financed by credit granted by the supplier;

however, it may be necessary to utilize a bank loan (or overdraft), or to "convert

debtors to cash" through "factoring".

Financial risk management

Risk management is the process of measuring risk and then developing and

implementing strategies to manage that risk. Financial risk management focuses on

risks that can be managed ("hedged") using traded financial instruments (typically

changes in commodity prices, interest rates, foreign exchange rates and stock prices).

Financial risk management will also play an important role in cash management.

This area is related to corporate finance in two ways. Firstly, firm exposure to

business risk is a direct result of previous Investment and Financing decisions.

Secondly, both disciplines share the goal of creating, or enhancing, firm value. All

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large corporations have risk management teams, and small firms practice informal, if

not formal, risk management.

Derivatives are the instruments most commonly used in Financial risk management.

Because unique derivative contracts tend to be costly to create and monitor, the most

cost-effective financial risk management methods usually involve derivatives that

trade on well-established financial markets. These standard derivative instruments

include options, futures contracts, forward contracts, and swaps.

Investment banking

Use of the term “corporate finance” varies considerably across the world. In the

United States it is used, as above, to describe activities, decisions and techniques that

deal with many aspects of a company’s finances and capital. In the United Kingdom

and Commonwealth countries, the terms “corporate finance” and “corporate

financier” tend to be associated with investment banking - i.e. with transactions in

which capital is raised for the corporation

Personal and public finance

Corporate finance utilizes tools from almost all areas of finance. Some of the tools

developed by and for corporations have broad application to entities other than

corporations, for example, to partnerships, sole proprietorships, not-for-profit

organizations, governments, mutual funds, and personal wealth management. But in

other cases their application is very limited outside of the corporate finance arena.

Because corporations deal in quantities of money much greater than individuals, the

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analysis has developed into a discipline of its own. It can be differentiated from

personal finance and public finance.


- To study the online trading and Demat account industry in India

- To evaluate the different method used by the trading company to promote its
- To analyzed the different perception that customer has from the investment
- To study the method used by the Sharekhan used to its customer for the
secondary market.

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“Investment” or “Investing”, like value is a word of many meanings. Evolution of

new investment concepts would result a dramatically change of the whole

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investment scene over next few years. Basically, there are three concepts of


1. Economic investment i.e. an economists’ definition of investment.

2. Investment in a more general or extended sense, which is used by “the man on

the street”

3. Financial investment, the sense in which we are going to be very much


1. Economic Investment includes net additions to the capital stock of society.

“Capital stock of society” means those goods, which are used in the

production of other goods. In society there are a number of goods (such as

building, machineries etc.), which are used to produce other goods. These

means of production are considered as the capital stock of society. Thus,

investment in the capital stock means an increase in buildings, machineries or

inventories over the amount of equivalent goods that existed, say, one year ago

at the same time.

2. The everyday usage of the term investment can mean a variety of things, but

to the common man on the street it usually refers to a money commitment of

some sort. For example, a common man as an investment will perceive buying

a new house or a new car. But these are in very general or extended sense of

word as neither there is any rate of return involved or any financial return or

capital growth is expected.

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3. Financial investment means an exchange of financial claims such as

securities, real estate mortgages etc. Investors to differentiate between the

pseudo-investment concept of the consumer and the real investment of the

businessman often use the term financial investments. For example, there is a

difference between an investment in a ticket on a horse and a construction of a

new plant or between pawning of a watch and planting of a field of corn. Here,

investment in a ticket on a horse or pawning of a watch is instances of pseudo-

investment whereas construction of a new plant or a field of corn is the cases

of real investments. Some investments are simply transactions among people

while others involve nature. The latter are “real” investments; the former are

“financial” investments.


Why is investment important or why do people invest? The simple answer to this

question is to ‘make money’. This can be explained by following story.

Donald and Mildred Other of New York lived quiet, unpretentious lives. Donald, who

died in 1995, was a professor of chemical engineering at Brooklyn Polytechnic

University. Mildred, a former teacher, died in 1998. When they died, they both were

in there nineties. What came, as a shock to friends was that the others left a combined

estate worth about $800 million, the bulk of which was left to a variety of non-profit

organizations. How did they accumulate such an impressive amount of wealth?

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Simply put, the Othmers, like many other Americans, got rich by investing their money

sensibly, leaving it invested for a long period, and living modestly. In the early 1960s,

the Othmers turned over their life savings, then fifty thousand dollars, to famed

investor Warren Buffeti, an old family friend. In the early 1970s, the Othmers

received shares of Buffets new company; Berksheie Hathaway invests in other

companies such as American Express, Coca-Cola and Gillette. When the Othmers

received their Berkshire shares, the price was $42 per share; at the time of Mildred’s

death the price has risen to $77,000 per share. Although, the Othmers were smart, or

perhaps just lucky to pick Buffet to manage their money, a similar investment, made at

the same time, in the overall stock market would have grown to more than $100

million by the middle of 1998.

To be more precise, people invest to improve their welfare or to increase their

monetary wealth, both current and future. By holding cash you forego the opportunity

to earn the rate on that cash. Investors are, usually, interested only in monetary

benefits to be obtained from investors. By foregoing consumption today and invest in

the savings, Investors expect to enhance their future consumption possibilities by

increasing their wealth. Investors also seek to manage their wealth effectively,

obtaining the most from it while protecting it from inflation, taxes and other factors.

To accomplish both the objectives, people invest. People also invest in order to meet

personal goals such as buying a home or providing better education to children.

As far as a firm is concerned, investment provides not only the most important

decision, which an investor (business proprietor) has to make, but also with one of the

toughest. The decision will affect the operating environment of the firm throughout

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the entire life of the investment. The quality of such decisions will largely determine

the future prosperity and health of the firm.

Investment generates by increasing capital per worker and is itself stimulated by

growth, as rapid growth produces buoyant expectations in a self- sustaining process.

However, it must be noted that investment alone, does not guarantee economic or

social growth. Profitable opportunities must be identified and exploited.

From the foregoing discussion, it can be concluded that investment is both important

and useful in the context of present day situations due to the following set of factors:

1. Longer Life Expectancy

Investment decisions are important today because people living longer. Life

expectancies are rising in most countries, both developed and developing. A 65 Yr.

old in sound health can be expected to live for at least another twenty years. The main

effect of longer life expectancies is an increase in the duration of a person’s average

retirement period. Thus, they will need more money when they retire accumulating

funds for retirement is one major reason why people invest. Further, the increasing

cost of health care will require setting aside greater reserves in order to maintain same

standard of living. Therefore, earnings from employment should be calculated in such

a manner that a portion should be put away as savings. Savings by themselves do not

increase do not increase wealth, but must be invested in such a way that the principal

and the return will be adequate enough for a longer retirement period. In other words,

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the investment decision made during one’s working life will be responsible for a

financially secured retirement.

2. Growth in Personal Income

Investment results in general increase in the employment opportunities, which gave,

rise to both male and female workforce. However, one should not merely rely on

increasing personal income to improve one’s future standard of living. The key to

improving a future standard of living is careful investment.

3. Changing Labor Market

Now a days, the old ideal of working in a company and being there until retirement is

an exception. Even IBM, which once had a reputation of virtually guaranteeing

lifetime employment, has reduced its workforce by more than 100,000 in the past few

years. People will have to rely more on their own resources and less on corporate

paternalism to meet their financial goals. Everyone should accumulate a larger

cushion of resources to survive an unexpected fall because you never know when

your employer is going to downsize your job out of existence.

4. Increasing Rates of Taxation

Increasing Rates of Taxation introduces an element of compulsion in a person’s

savings. These are various forms of saving outlets in the form of investments that help

in bringing down the tax-rates. For example, investments in UTI certificates, LIC,

NSC, Post –office Cumulative Deposit Schemes etc. Hence, besides safety of

principal and high rates of interest, an investor should always bear in mind the

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taxation angle. An investment should such that the interest earned is compensated by

an increase in tax rates.

5. Inflation

Inflation has become a continuous problem since the last two decades. High rates of

inflation bring a relatively rapid decline in purchasing power. Thus, in an inflationary

environment, the purchasing power of cash diminishes. This results in fall of standard

of living and many other problems. An investor should search an outlet, which gives

him a high rate of return in the form of interest to cover any decrease due to inflation.


Investment is the sacrifice of certain present value for uncertain future reward. All

investment choices are made at points of time in accordance with the personal

investment ends and in contemplation of an uncertain future. Since investments in

securities are revocable, investment ends are transient and the investment

environment is fluid. As one conceives of the distant future, the reliable bases for

reasoned expectations become more and more vague. Investors in securities should,

therefore, reappraise and re-evaluate their various investment commitments from time

to time, in the light of new information and changed expectations.

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Investment helps in arriving at numerous decisions that are not only continuous but

rational too. Investment decisions are found to be the outcome of three different but

related classes of factors:

1. Informational or Factual premises:

The investor is provided with many streams of data that are taken together and

represent the observable environment as well as the features of the securities

and firms in which he may invest.

2. Expectational Premises:

Various environmental and financial facts are made available to the investors

that spark a light of expectations relating to the outcomes of alternative

investments though they are subjective and hypothetical. This not only limits

the range of investments, which may be undertaken but also the expectations

of outcomes that may legitimately be entertained.

3. Valuational Premises:

These comprise the structure of subjective preferences for the size and

consistency of the income to be received and for the safety and negotiability of

various investments as these are appraised from time to time.


Investment may be regarded as utilization of the savings of a country for further

creation of wealth. Investment plays a central role in the process of economic

development. The level of saving largely effects investment. All the people in an

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economy do not save for production. Their savings have to be mobilized for

productive purposes. Then only it will lead to capital formation, which is the very

core of economic growth. Saving is the excess of income over consumption. Thus,

something out of current consumption is kept aside for the creation of capital or

wealth. Investment is the process of applying such saving to the creation of specific

forms of capital.


For example, if a person having a deposit of Rs. 1 crore in his bank account, devotes

himself to the construction of a power house, and thereafter sells the power so

generated, he has used his one crore rupees in the creation of capital, and that capital

yields services in the form of “power”, which can be sold and reconverted into

“money”. This process may be described as “investment”. In developing countries

like India where the process of economic development is quiet slow, it is very

necessary to step up the rate of investment so that the country accumulates a large

capital stock to accelerate production. As compared to other countries, the rate of

saving and investment in India are extremely low. Saving and investment are two

independent activities. With the increase in one, the other is also increased.

5. Portfolio construction and execution

After securities have been evaluated, the next step is construction and

execution of the portfolio. This is the phase that is concerned with the

implementation of portfolio strategy. This involves identification of the

specific assets in which the investor should invest and determination of the

proportions of investors wealth to be invested in each of the assets. An

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investor makes two types of decisions while constructing portfolios – the asset

allocation decision and the security selection decision. The asset allocation

decision is the choice among broad asset classes, while the security selection

decision is the choice of particular securities to be held within each asset

classes. Accordingly there are two approaches to portfolio construction – top

down and bottom up. Top down portfolio construction starts with asset

allocation and only after that, the investor decides on the particular securities

to be held. On the other hand, in the bottom up approach, the portfolio is

constructed from the securities that appear to be attractively priced without

concerning about asset allocation. Thus, the main features of portfolio

construction and execution are – determination of diversification level,

consideration of investment timing, selection of investment assets and

allocation of invest-able wealth to investment assets.

Example of Investment Portfolio

Cash 10

Income Stocks 20

Growth Stocks 38

Treasury Bills 17

Corporate Bonds 15

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Corporate 10%

Income Stocks
Treasury Bills 20%

Growth Stocks

6. Portfolio Revision

Having built a portfolio, an investor must consider when and how to

revise it. Portfolio revision involves the periodic repetition of the above steps.

The investment objectives of an investor may change over time and the current

portfolio may no longer be optimal for him. So the investor may form a new

portfolio by selling certain securities and purchasing others that are not held in

the current portfolio. Moreover, the value of a portfolio as well as its

composition (i.e. the relative proportions of stock and bond components) may

change over time as stocks and bonds tend to fluctuate. As a result, some

securities that were not attractive initially may become attractive and vice-

versa. In response to such changes, the investors may like to revise and

rebalance his existing portfolio.

7. Performance Evaluation

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The final step in the investment process is the performance evaluation

of the portfolio. Investments are always made under conditions of uncertainty

and it is necessary to evaluate periodically how the investment (portfolio)

performed so that, if necessary, the investor may consider switching over to

alternate proposals. The performance of evaluation of a portfolio is done in

terms of risk and return. The key issue is whether the portfolio return is

commensurate with its risk exposure. This may provide useful feedback to

improve the quality of the portfolio management process.


Sharekhan is one of the leading retail brokerage of SSKI Group which was running
successfully since 1922 in the country. The SSKI Group was founded by four brothers
named Srevatilal, Shantilal, Kantilal and Ishwarlal. It is the retail broking arm of the
Mumbai-based SSKI Group, which has over eight decades of experience in the stock
broking business. Sharekhan offers its customers a wide range of equity related services
including trade execution on BSE, NSE, Derivatives, depository services, online trading,
investment advice etc.
The firm’s online trading and investment site - www.sharekhan.com - was launched
on Feb 8, 2000. The number of trading members currently stands at over 8 Lacs.
Sharekhan alone accounts for 22 per cent of the volumes traded online.
The objective has been to let customers make informed decisions and to simplify
the process of investing in stocks. Sharekhan has 660 branches in 290 cities in India, The
Morakhiya family holds a majority stake in the company. HSBC, Intel & Carlyle are the
other investors. With a legacy of more than 80 years in the stock markets, the SSKI
group ventured into institutional broking.

Page 30
Sharekhan is driven by ethical and dynamic process for wealth creation. Based on this,
the company started its endeavour in the financial market.
Sharekhan is proud of being a truly professional financial service provider managed by a
highly skilled team, who have proven track record in their respective domains.
Sharekhan operations are managed by more than 1500 highly skilled professionals who
subscribe to Sharekhan philosophy and are spread across its country wide branches.
Today, we have a growing network of 150 branches and more than 300 business partners
spread across 180 cities in India and a fully operational international office at London.
However, our target is to have 350 branches and 1000 business partners in 300 cities of
India and more than 7 International offices by the end of 2007.


VaR is a technique used to estimate the probability of loss of value of an asset or group
of assets (for example a commodity or a portfolio of a few commodities), based on the
statistical analysis of historical price trends and volatilities. A VaR statistic has three
components: a time period, a confidence level and a loss amount (or loss percentage).
VaR Margin is at the heart of margining system for the cash market segment. VaR
margin is collected on upfront basis. In that respect, it is similar to the margin we have
seen in our example under question 1 while placing the order.
Let us try and understand briefly what we mean by ‘VaR’. The most popular and
traditional measure of uncertainty / risk is Volatility, which we have understood earlier.
While historical volatility tells us how the security price moved in the past, VaR answers
the question, “How much is it likely to move over next one day?" VaR is a technique
used to estimate the probability of loss of value of an asset or group of assets (for
example a share or a portfolio of a few shares), based on the statistical analysis of
historical price trends and volatilities. A VaR statistic has three components: a time
period, a confidence level and a loss amount (or loss percentage). Keep these three parts
in mind and identify them in the following example:

Page 31
With 99% confidence, what is the maximum value that an asset or portfolio may loose
over the next day?
You can see how the "VaR question" has three elements: a relatively high level of
confidence (99%), a time period (a day) and an estimate of loss (expressed either in
rupees or percentage terms). The actual calculation of VaR is beyond the scope of this
VaR is computed using exponentially weighted moving average (EWMA) methodology.
Based on statistical analysis, 94% weight is given to volatility on ‘T-1’ day and 6%
weight is given to ‘T’ day returns.
To compute volatility for January 1, 2008, first we need to compute day’s return for Jan
1, 2008 by using LN (close price on Jan 1, 2008 / close price on Dec 31, 2007).
Take volatility computed as on December 31, 2007.
Use the following formula to calculate volatility for January 1, 2008:
Square root of [0.94*(Dec 31, 2007 volatility)*(Dec 31, 2007 volatility) + 0.06*(January
1, 2008 LN return)*(January 1, 2008 LN return)]
Volatility on December 31, 2007 = 0.0314
Closing price on December 31, 2007 = Rs. 360
Closing price on January 1, 2008 = Rs. 330
January 1, 2008 volatility =
Square root of [(0.94*(0.0314)*(0.0314) + 0.06 (0.08701)* (0.08701)]
= 0.037 or 3.7%

The Extreme Loss Margin aims at covering the losses that could occur outside the
coverage of VaR margins. The Extreme loss margin for any commodity is higher of 1.5
times the standard deviation of daily LN returns of the commodity price in the last six
months or 5% of the value of the position. This margin rate is fixed at the beginning of
every month, by taking the price data on a rolling basis for the past six months.

The VaRmargin rate for shares was 13%. Suppose that standard deviation of daily LN
returns of the security is 3.1%. 1.5 times standard deviation would be 1.5 x 3.1 = 4.65.
Then 5% (which is higher than 4.65%) will be taken as the Extreme Loss margin rate.
Therefore, the total margin on the security would be 18% (13% VaR Margin + 5%
Extreme Loss Margin). As such, total margin payable (VaR margin + extreme loss
margin) on a trade of Rs.10 lakhs would be 1, 80,000/-

Page 32
MTM is calculated at the end of the day on all open positions by comparing transaction
price with the closing price of the share for the day.
MTM Profit/Loss = [(Total Buy Qty X Close price) – Total Buy Value] - [Total Sale
Value - (Total Sale Qty X Close price)]

Example: If an investor owns 100 shares of a stock purchased for $40 per share, and that
stock now trades at $60, the "mark-to-market" value of the shares is equal to (100 shares
× $60), or $6,000, whereas the Book value might (depending on the accounting
principles used) only equal $4,000. : - Similarly, if the stock falls to $30, the mark-to-
market value is $3,000 and the investor has lost $1,000 of the original investment. If the
stock was purchased on margin, this might trigger a margin call and the investor would
have to come up with an amount sufficient to meet the margin requirements for his
 The volatility of Nifty 50 & Sensex is increasing yearly
 The Volatility of Nifty 50 & Sensex is much more than that of Nasdaq
 Increasing Inflation and Crude Oil prices have negative impact on turnover.
 FII’s have a positive impact.
 India ranks 18th in terms of World Traded Value.
 In terms of dividend and P/E India ranks 5th
 India contributes 1.51% of World Market Capitalization


Services provided by the SHAREKHAN-

Page 33
1. Equities & Derivatives: --Comprehensive services for independent
investors, active traders & Non-Resident Indians.

2. Share khan equity analysis: --Premium research on 401+ companies updated


3. Depository Services: --Value added services for seamless delivery.

 Equities and Derivatives-

Our Retail Equity Business caters to the needs of individual Indian and Non-Resident
Indian (NRI) investors. Share khan offers broker assisted trade execution, automated
online investing and access to all IPO's.
Through various types of brokerage accounts, India bulls offers the purchase and sale of
securities which includes Equity, Derivatives and Commodities Instruments listed on
National Stock Exchange of India Ltd (NSEIL), The Stock Exchange, Mumbai (BSE)
and NCDEX.

Choose the service options that fit you best.

 Share khan Classic account - Comprehensive services including research

and investing guidance for independent investors.
 Share khan Fast trade - Share khan is dedicated to empower Active Traders
through personal service and advanced trading technology.

 Share khan Speed trade plus - With an extensive range of investment

products, you will discover an unwavering commitment to helping you invest
in India.

 Share khan equity analysis –

Page 34
Building and maintaining your ideal portfolio demands objective, dependable
information. Share khan Equity Analysis helps satisfy that need by rating stocks based
on carefully selected, fact-based measures. And because we're not focused on investment
banking, we don't have the same conflicts of interest as traditional brokerage firms. This
objectivity is only one important difference in our ratings.
 Type of categories-
Evergreen:- These stocks are steady compound, churning out steady growth rates year
on year. They are typically significant players in their markets, with sound strategies that
will help them achieve and sustain market dominance in the long run. They have strong
brands, management credentials and a consistent track record of achieving super normal
shareholder returns. We expect stocks in this category to compound at between 18-20%
per annum for the next five to ten years.
Apple Green:- These are stocks that have the potential to be steady compound and are
attempting to move upwards, to turn Evergreen. They rank a shade below the Evergreen
companies, only because their potential in the five to ten years' time is still not very
clear, although they might grow at rates faster than that of the Evergreen stocks in the
next year or two. They could grow at 25-30% per annum over the next two to three
Emerging Star:- These are typically young companies, often in niche businesses, that
have the potential to grow and dominant their niches. Even better, they might turn out to
be real giants, if their niches explode into full-blown markets in their own rights. These
stocks are potential ten-baggers but you need to be patient.
Ugly Duckling:- These are companies that are trading below their fair value or at values
which are at a significant discount to that of their peer group, due to a combination of
circumstances. But things are now starting to happen in these companies or in their
markets that are likely to cause a re-evaluation of their prospects. These stocks could
double in two to three years' time.
Vulture's Pick:-These are companies with valuable assets or brands that have been
trashed to ridiculously low prices. Buy a Vulture's Pick and wait for a predator who finds
its assets undervalued to come along. This could be a long wait but the returns could be
startlingly high.
Cannonball:- These are companies with valuable assets or brands that have been trashed
to ridiculously low prices. Buy a Vulture's Pick and wait for a predator who finds its

Page 35
assets undervalued to come along. This could be a long wait but the returns could be
startlingly high.
3-Depository Services –
Share khan is a depository participant with the National Securities Depository Limited
and Central Depository Services (India) Limited for trading and settlement of
dematerialized shares. Share khan performs clearing services for all securities
transactions through its accounts. We offer depository services to create a seamless
transaction platform – execute trades through Share khan Securities and settle these
transactions through the India bulls Depository Services. Share khan Depository Services
is part of our value added services for our clients that create multiple interfaces with the
client and provide for a solution that takes care of all your needs
Clients can access the customer service team through various media like toll-free
lines, emails and Internet- messenger chat for instant query resolution. The
Company’s customer service executives proactively contact customers to inform them
of key changes and initiatives taken by the Company. Business World rated the
Company’s customer service as ‘Best’ in their survey of online trading sites carried
out in December 2003.
Key features
o Membership on the Bombay Stock Exchange Limited and the National
Stock Exchange
o Registered with the NSDL as well as CDSL as a depository participant,
providing a one-stop solution for clients trading in the equities market
o Broking services in cash and derivative segments, online as well as
o Presence across 350 cities and towns with a network of over 850
business locations Equity client base of over 500,000 clients
o Provision of free and world-class research to all clients.


Page 36
Our Portfolio Management Service is a product wherein an equity investment
portfolio is created to suit the investment objectives of a client. We at Indiainfoline
invest your resources into stocks from different sectors, depending on your risk-return
profile. This service is particularly advisable for investors who cannot afford to give
time or don't have that expertise for day-to-day management of their equity portfolio.
You get recessions. You have stock market declines. If you don't understand that's
going to happen, then you're not ready; you won't do well in the markets. No need to
worry. We at India Infoline would take care of all issues related to managing your
hard earned money.
Our Portfolio Management Service is a product wherein an equity investment
portfolio is created to suit the investment objectives of a client. We at India Infoline
invest your resources into stocks from different sectors, depending on your risk-return
profile. This service is particularly advisable for investors who cannot afford to give
time or don't have that expertise for day-to-day management of their equity portfolio.
It is all about your money, being managed by the experts, while you continue with
your routine life. Isn't it simple and totally hassle free.
What's more, you can keep track of your dividends / bonus / rights issues with
paperless tracking. So you always know how fast your investment is growing. It
basically means assigning the right job to the right person.
Salient Features of India Infoline PMS:

* Expert team of Research Analysts

* Stock Picking done by the Investment Committee
* Dedicated Relationship Manager
* Technology and Service driven Back-Office

Sound investment decisions depend upon reliable fundamental data and stock
selection techniques. Indiainfoline Equity Research is proud of its reputation for, and
we want you to find the facts that you need. Equity investment professionals routinely
use our research and models as integral tools in their work.
They choose Ford Equity Research when they can clear your doubts.

Page 37
Indiainfoline’s extension into commodities trading reconciles its strategic intent to
emerge as a one-stop solutions financial intermediary. Its experience in securities
broking has empowered it with requisite skills and technologies. The Company’s
commodities business provides a contra-cyclical alternative to equities broking. The
Company was among the first to offer the facility of commodities trading in India’s
young commodities market (the MCX commenced operations only in 2003). Average
monthly turnover on the commodity exchanges increased from Rs 0.34 bn to Rs 20.02
bn. The commodities market has several products with different and non-correlated
cycles. On the whole, the business is fairly insulated against cyclical gyrations in the
Complete solution :
The Company provides a complete - advice to execution – solution facilitated by
information and advice on likely commodity trends in the Indian and international

Technology :
The Company has extended the trading terminal to the investor’s home/workplace
reinforced with real-time commodity information and ledger position.

Rates :
The Company harnessed technology to offer services at among the lowest rates in the
business.Membership: The Company widened client reach in trading on the domestic
and international exchanges.
Key Features
a. Enjoys memberships with the MCX and NCDEX, two leading Indian
commodities exchanges
b. Recently acquired membership of the DGCX
c. Multi-channel delivery model, making it among the select few to offer
online as well as offline trading facilities
d. Extended commodity trading to retail investors, among the few Indian
financial intermediaries to do so
e. Online business at 80% of revenues dominates commodities trading

Page 38
f. Provides regular commodity updates pertaining to the Indian and
international environment

During the year under review, Indiainfoline acquired a 75% stake in Moneytree
Consultancy Services to mark its foray into the business of mortgages and other loan
products distribution. The business is still in the investing phase and at the time of the
acquisition was present only in the cities of Mumbai and Pune. The Company brings
on board expertise in the loans business coupled with existing relationships across a
number of principals in the mortgage and personal loans businesses. Indiainfoline
now has plans to roll the business out across its pan-Indian network to provide it with
a truly national scale in operations.
 Home Loans
 Get expert advice that suits your needs
 Loan against residential and commercial property
 Expert recommendations
 Easy documentation
 Quick processing and disbursal
 No guarantor requirement
 click for more
o Personal Loans
 Freedom to choose from 4 flexible options to repay

 Expert recommendations
 Easy documentation
 Quick processing and disbursal
 No guarantor requirement
 click for more
 Invest Online
Indiainfoline has made investing in Mutual funds and primary market so effortless.
All you have to do is register with us and that’s all. No paperwork no queues and No
registration charges.

Page 39
Indiainfoline offers you a host of mutual fund choices under one roof, backed by in-
depth research and advice from research house and tools configured as investor
You could also invest in Initial Public Offers (IPO’s) online without going through
the hassles of filling ANY application form/ paperwork.
Stay connected to the market
The trader of today, you are constantly on the move. But how do you stay connected
to the market while on the move? Simple, subscribe to India Infoline's Stock
Messaging Service and get Market on your Mobile!
# There are three products under SMS Service: Market on the move.
# Best of the lot.
# VAS (Value Added Service )
An entry into this segment helped complete the client’s product basket; concurrently,
it graduated the Company into a one-stop retail financial solutions provider. To ensure
maximum reach to customers across India, we have employed a multi pronged
approach and reach out to customers via our Network, Direct and Affiliate channels.
Following the opening of the sector in 1999-2000, a number of private sector
insurance service providers commenced operations aggressively and helped grow the
market. The Company’s entry into the insurance sector derisked the Company from a
predominant dependence on broking and equity-linked revenues. The annuity based
income generated from insurance intermediation result in solid core revenues across
the tenure of the policy.
Wealth Mangement Service
Imagine a financial firm with the heart and soul of a two-person organization. A
world-leading wealth management company that sits down with you to understand
your needs and goals. We offer you a dedicated group for giving you the most
personal attention at every level.
The Daily Market Strategy is your morning dose on the health of the markets. Five
intra-day ideas, unless the markets are really choppy coupled with a brief on the
global markets and any other cues, which could impact the market. Ocassionally an
investment idea from the research team and a crisp round up of the previous day's top

Page 40
stories. That's not all. As a subscriber to the Daily Market Strategy, you even get
research reports of India Infoline research team on a priority basis.
They say you mustn't trust a man till you know his house. Everyone likes hearing
people say “Wow, what a beautiful house you have!” From cave dwelling, we have
evolved and now a house provides far more than just shelter...it also becomes a source
of pride. A Housing Loan is used as finance to help you buy or modify that perfect

The different Housing Loan products can be classified as:

 Home Loans & Home Extension Loans

 NRI Loans
 Land Loans
 Home Equity Loans
 What is a housing loan?
 Who can apply?
 General Terms and conditions of a Housing Loan product.
 Charges applicable to housing loan products.
 Repayment capacity
 Credit documentation
 Legal documentation
 Tax Benefits
 Property Insurance

What is a housing loan?

They say you mustn't trust a man till you know his house. Everyone likes hearing
people say "Wow, what a beautiful house you have!" From cave dwelling, we have
evolved and now a house provides far more than just shelter...it also becomes a source
of pride. A Housing Loan is used as finance to help you buy or modify that perfect
home. The different Housing Loan products can be classified as:

 Home Loan

Page 41
 Home Extension Loans
 Home Improvement Loans
 Land Loans
 NRI Loans
 Home Equity Loans
 Short term Bridging Loans
 Balance Transfer

As long as you want to buy a house in India, you can apply for a Home Loan. You
could be a Resident Indian or an NRI; you could want to buy a property now or in the
future, but you may still apply for a Home Loan. In case you go with the last option
and want to wait before you consider nests, all you have to be sure of is the amount
you are willing to spend on this property and the HfIs will let you know your
eligibility based on your income which will help you plan out your budget. To find
out your eligibility, please use our calculator.
General Terms and Conditions of a Housing Loan Product

You are allowed to visit zoos on the condition that you do not feed the animals. When
you're 18, you are allowed to go for that late night party on the condition that
someone drops you home before 12. Every step we take requires condition to be
fulfilled. Similarly, these are the general terms & conditions of a Home Loan. For
more details, please refer to the individual product.

 LTV Ratio will not exceed a particular percentage. This percentage differs
from HFI to HFI and the components of the value of property are covered in
Cost of Property
 Elastic can be stretched only to a certain extent. The loan tenure also will not
go beyond 20 years. However, HFIs do provide for different tenures with
different terms and conditions.
 Your EMI normally does not exceed 50% of your Gross Monthly income.
 The total monthly payment towards all the loans you have availed of,
including the present one, will normally not exceed 50% of your Gross
Monthly Income.

Page 42
 Your loan eligibility is calculated using LTV, IIR and FOIR norms and the
lowest from the three is chosen.
 Your profile is considered by the HFI before your repayment capacity is
 If the HFI insists on a personal guarantor, you need to provide one before the
disbursement of your loan.
 Your property should be both technically and legally clear before your loan
can get disbursed by the HFI.
 In case you have bought an under construction property, your loan will be
partly disbursed, as per the stages of construction and PEMI needs to be paid
on it.
 The disbursement, in most cases, will be in the name of the builder or the
seller or the society or the development authority unless you have made some
payment to them.
 Repayment of the loan is either via Deduction Against Salary, Post Dated
Cheques, standing instructions or by cash / DD.
 You can either choose to repay the loan using the Annual rests or Monthly



Page 43
Sharekhan is one of the top retail brokerage houses in India with a strong online
trading platform. The company provides equity based products (research, equities,
derivatives, depository, margin funding, etc.). It has one of the largest networks in the
country with 1200+ share shops in 400 cities and India’s premier online trading portal
www.sharekhan.com. With their research expertise, customer commitment and
superior technology, they provide investors with end-to-end solutions in investments.
They provide trade execution services through multiple channels - an Internet
platform, telephone and retail outlets.

Page 44
Sharekhan was established by Morakhia family in 1999-2000 and Morakhia family,
continues to remain the largest shareholder. It is the retail broking arm of the
LIMITED] Group. SSKI which is established in 1930 is the parent company of
Sharekhan ltd. With a legacy of more than 80 years in the stock markets, the SSKI
group ventured into institutional broking and corporate finance over a decade ago.
Presently SSKI is one of the leading players in institutional broking and corporate
finance activities. Sharekhan offers its customers a wide range of equity related
services including trade execution on BSE, NSE, and Derivatives. Depository
services, online trading, Investment advice, Commodities, etc. Sharekhan Ltd. is a
brokerage firm which is established on 8th February 2000 and now it is having all the
rights of SSKI. The company was awarded the 2005 Most Preferred Stock Broking
Brand by Awaaz Consumer Vote. It is first brokerage Company to go online. The
Company's online trading and investment site - www.Sharekhan.com - was also
launched on Feb 8, 2000. This 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 research, 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.

Sharekhan has one of the best states of art web portal providing fundamental and
statistical information across equity, mutual funds and IPOs. One can surf across
5,500 companies for in-depth information, details about more than 1,500 mutual fund
schemes and IPO data. One can also access other market related details such as board
meetings, result announcements, FII transactions, buying/selling by mutual funds and
much more. Sharekhan's management team is one of the strongest in the sector and
has positioned Sharekhan to take advantage of the growing consumer demand for
financial services products in India through investments in research, pan-Indian
branch network and an outstanding technology platform. Further, Sharekhan's lineage
and relationship with SSKI Group provide it a unique position to understand and
leverage the growth of the financial services sector. We look forward to providing
strategic counsel to Sharekhan's management as they continue their expansion for the
benefit of all shareholders.

Page 45
SSKI Corporate Finance Private Limited (SSKI) is a leading India-based investment
bank with strong research-driven focus. Their team members are widely respected for
their commitment to transactions and their specialized knowledge in their areas of
strength. The team has completed over US$5 billion worth of deals in the last 5 years
- making it among the most significant players raising equity in the Indian market.
SSKI, a veteran equities solutions company has over 8 decades of experience in the
Indian stock markets. If we experience their language, presentation style, content or
for that matter the online trading facility, we'll find a common thread; one that helps
us make informed decisions and simplifies investing in stocks. The common thread of
empowerment is what Sharekhan's all about. "Sharekhan has always believed in
collaborating with like-minded Corporate into forming strategic associations for
mutual benefit relationships" says Jaideep Arora, Director - Sharekhan Limited.

Sharekhan is also about focus. Sharekhan does not claim expertise in too many things.
Sharekhan's expertise lies in stocks and that's what he talks about with authority. So
when he says that investing in stocks should not be confused with trading in stocks or
a portfolio-based strategy is better than betting on a single horse, it is something that
is spoken with years of focused learning and experience in the’ stock markets. And
these beliefs are reflected in everything Sharekhan does for us! Sharekhan is a part of
the SSKI group, an Indian financial services power house, with strong presence in
Retail equities Institutional equities Investment banking. In Ahmedabad, It is having
the branch at Dynamic house, opp. Child care hospital, Navrangpura road and over 40
franchisees in Ahmedabad. We have been given the centre at Navrangpura road,


Page 46
Formal (organized) Informal (organized)
Financial system Financial system

Financial markets

Capital market Money market

Equity market

 Future
 Option
 Swap
Primary market Secondary  Forwards

 Public issue
 Rights issue  NSE
 Private  BSE
 Preferential
In Sharekhan, under demat account there are two types of terminals.

TYPE OF DEMAT DEPOSIT (Refundable) CHARGES (nonrefundable)


CLASSIC Rs.5000 Rs.750

Rs.10000 Nil

TRADETIGER Rs.5000 Rs.1000

Rs.10000/25000 Nil

Page 47
 Its core services are:
 Equities, and Derivatives trading on the National Stock Exchange of India Ltd.
(NSE), and Bombay Stock Exchange Ltd. (BSE),
 Commodities trading on National Commodity and Derivatives Exchange India
(NCDEX) and Multi Commodity Exchange of India Ltd. (MCX),
 Depository services,
 Online trading services,
 IPO Services,
 Dial-n-Trade
 Portfolio management services,
 Fundamental and Technical Research services,
 In addition to this they also provide advisory services and distributions for
mutual funds.
 Sharekhan ValueLine (a monthly publication with reviews of
recommendations, stocks to watch out for etc.)
 Daily research reports and market review (High Noon & Eagle Eye)
 Pre-market Report
 Daily trading calls based on Technical Analysis
 Cool trading products (Daring Derivatives and Market Strategy)
 Personalized Advice
 Live Market Information
 Sharekhan First Step

Sharekhan First Step

The Sharekhan FirstStep is a brand new program designed especially for those who
are new to investing in shares. All one have to do is open a Sharekhan FirstStep
account and they guide us through the investing process.

Market Share

Page 48
Sharekhan enjoyed about 20 per cent market share in Web business (Internet trading)
in stock markets. Three years ago, Web trading showed lot of promise but with the
market witnessing a downturn, there was not much interest among retail customers.
The share of Web trading constituted 22 per cent of the revenue. As Sharekhan's daily
trading volume was over Rs 200 crore, the share of Web trading at about Rs 40 crore
a day was substantial and a larger part of the volume was coming from day traders.

Features of Trading With Sharekhan:

1. Freedom from paperwork
2. Instant credit and money transfer
3. Trade from any net enabled PC
4. After hour orders
5. Online orders on the phone
6. Timely advice and-research reports
7. Real-time Portfolio tracking
8. Information and Price alerts.


Taking in to consideration all its assets and liabilities company is valued at around Rs.
750-850 crores.


 To educate and empower the individual investor to make better investment

decisions through quality advice and superior service.


 To be the best retail brokering Brand in the retail business of stock market.


A wired company along with Reliance, Hll, Infosys, etc by ‘Business Today’,
January 2004 edition.

Page 49
It was awarded ‘Top Domestic Brokerage House’ four times by Euro and Asia

It was Winner of “Best Financial Website” award.

 India’s most preferred brokers within 5 years. “CNBC Awaaz customers Award

The main strategies used in our training were as follow.


In data calling we were provided data of mobile numbers and our job was to
generate appointments. After that we were required to convert that
appointment into closure. Apart from given data we also brought latest
business directory. We called to different business people and tried to generate


Called calling means to go at different corporate houses and to meet different

People and to get their visiting card by it we get lead and our immediate task
Was to call them & to fix appointment.


Another important strategy was to use our reference means our family, friends,
relatives etc. In marketing or selling we can never neglect references & they
always play a major role.

Stall activity means to
make stall at public place. Then

Page 50
our job was to give them a
newspaper with brochures and
to take their name and contact
number. So it was another
process of generating lead.
After that our job was to follow
up and try for appointment and

Page 51

Sales Side Dealing Side

 Trainees  Junior Dealer

 Super Trainees  Dealer

 Sales Executives  Relationship manager

 Senior sales executives  Senior Relationship manager

 Business development  Equity advisor


 Assistant sales manager  Assistant Branch Manager

 Deputy manager  Branch Manager

 Territory manager  Cluster Head

 Area sales manager/ Cluster  Directors

 Regional sales manager  CEO

 Regional Head

 Vice president

 Directors


 Sharekhan provides 4 in 1 account.
1. De-mat a/c
2. Trading a/c [for cash calculation]
3. Bank a/c [for fund transfer]
4. Dial and Trade [for offline trading/for query relating trading]

[1] Dematerialization account:-

Dematerialization is the process of converting physical shares (share
certificates) into an electronic form. Shares once converted into dematerialized
form are held in a De-mat account Sharekhan is a depository participant. This
means that we can keep the shares in dematerialized form in Sharekhan. But
for this one has to purchases the Demat account in Sharekhan. .
 Sharekhan provides no opening charge.
 Sharekhan provide de-mat account free of charge for first year, Rs.400/
year from the next year (year continued from the day of opening).
 Auto pay-in & Auto pay-out of securities.

 Waver of pay-in and pay-out charges (Due to link De-mate account).


 2 passport size photograph

 Identity proof (PAN card is compulsory)

 Residence proof
 Cheque ( Min Rs.10,000 margin balance)
 Proofs of Identity:-

Customer can submit a photo copy of any one of the following

o Voter ID
o Passport
o PAN Card
o Driving License
o Photo I card issued by Employer registered under MAPIN
o Copy of Ration card

Address Proof
Customer can submit a photo copy of any one of the following

o Voter ID Card
o Driving License
o Passport
o Ration Card
o Telephone Bill
o Electricity Bill
o Leave-License
o Bank Passbook
o Latest Bank Statement
[2] Trading Account:
It is an electronic account which enables customers to trade in share through internet
without help to broker.
1) NSE/BSE/F&O/Commodity terminal live screen:-

Provides online fluctuations rate on computer screen

2) Online Daily Tips:-

 Sharekhan is providing tips through mails in 4 sessions

 Pre market
 Noon session
 Post market
 Late evening
 Sharekhan is provide tips through SMS (chargeable)
 Sharekhan is provide tips through Yahoo Messenger Online
3) IPO/MF Online :-
Sharekhan provide IPO and MF facility for the customer.
[3] Saving Account:
In Sharekhan, a customer can have a saving account for trading online with net banking
facility; Sharekhan have a tie ups with following Banks.

1. HDFC Bank
2. CITI Bank
3. OBC Bank
4. YES Bank
5. UTI Bank
6. IDBI Bank
7. ICICI Bank
8. Union Bank
9. Indusind Bank
10. Bank of India
11. Deutsche Bank
A customer can allocate and transfer fund from your respective bank account to your
Sharekhan account for trading and transfer back to link bank account when and where

[4] Dial-N-Trade:-

Sharekhan provide Dial-N-Trade facility to the customer.

AMC PLAN:- ( Annual Maintenance Cost Plan)

Different Plans for Purchasing of Demat Accounts for Equity:-

 Different Plans for Purchasing of Demat Accounts for Derivatives:-

Sharekhan ltd. Provide different Product as follows:-

 Share online & offline

 Derivatives

 Mutual fund online

 Commodities online

 IPO online

 Portfolio Management Services

 Insurance

 Fixed deposits

 Advisory products

 Currency trading

Sharekhan provide online facilities.


I. Freedom from paperwork:-Integrated trading, bank and de-mat account with

digital contracts removers all paperwork.
II. Instant credit and transfer:-instant transfer of funds from bank account of the
choice to Sharekhan trading account.
III. Trade anywhere:-enjoy the ease of trading from any part of the world in a
completely secure environment.
IV. Dial n Trade:-call toll free number (1-800-22-7050) to place orders through
V. Timey advice:-make informed decisions with expert advice, investment calls and
live market commentary.
VI. Real-time portfolio tracking:-benefit from real-time information for investment
and current portfolio value.
VII. After-hour orders:-place order after market hours, which get executed as soon as
the markets opens.

Sharekhan provide two different accounts:

1) Classic account
2) Trade Tiger


The Classic Account enables customers to trade online on the NSE and the BSE, invest in
IPO and Mutual Funds and access all the research and transaction reports through
Sharekhan’s website. This account is suitable for the retail investors.
In this account Shown the maximum script are 25 in the terminal and the technical chart
are not shown in this account.
The life time registration charge for this account is 750 rupees.


 Online trading account for investing in Equities and Derivatives

 Free trading through Phone (Dial-n-Trade)

o Two dedicated numbers for placing your orders with your cell phone or
o Automatic funds transfer with phone banking (for Citibank and HDFC
bank customers)
o Simple and Secure Interactive Voice Response based system for
o Get the trusted, professional advice of our telebrokers.
o After hours order placement facility between 8.00 am and 9.30 am

 Integration of: Online trading + Bank + Demat account

 Instant cash transfer facility against purchase & sale of shares
 IPO investments
 Instant order and trade confirmations by e-mail
 Single screen interface for cash and derivatives


1. Online trading is very user friendly and one doesn't need any software to

1. They provide good quality of services like daily SMS alerts, mail alerts, stock
recommendations etc.

Sharekhan has ability to transfer funds from most banks. Unlike ICICI Direct, HDFC
Sec, etc., so investor not really needs to open an account with a particular bank as it can
establish link with most modern banks.


There are 14 main hierarchical levels in Sharekhan:

1) Trainees
2) Super trainees
3) Sales executives
4) Assistant sales manager
5) Area sales manager
6) Assistant branch manager
7) Branch manager
8) Regional head
9) Directors
10) CEO



 Streaming quotes.
 Personalized market watch.
 Single screen interface for cash, derivatives and Commodities.
 New FastTrade is platform independent will support by all Operating System.
 New FastTrade will support all browsers in the market.
 New FastTrade is independent of existing website and can work even if
content website is down.

TRADE An Option By Which Bulk TIGER:

Trading Can Be Done.

Trade tiger is a next-generation online trading product that brings the power of broker’s
terminal to customer pc. It is session to capitalize on intra-day price movement. Trade
tiger is an internet –based application available on a CD, which provides everything a
trader needs on one screen.

Key Features:-

 A single platform for multiple exchange BSE & NSE (Cash & F&O), MCX,
NCDEX, Mutual Funds, IPOs

 Multiple Market Watch available on Single Screen

 Multiple Charts with Tick by Tick Intraday and End of Day Charting powered
with various Studies

 Graph Studies include Average, Band- Bollinger, Know Sure Thing, MACD,
RSI, etc

 Apply studies such as Vertical, Horizontal, Trend, Retracement & Free lines

 User can save his own defined screen as well as graph template, that is, saving
the layout for future use

 User-defined alert settings on an input Stock Price trigger

 Tools available to gauge market such as Tick Query, Ticker, Market

Summary, Action Watch, Option Premium Calculator, Span Calculator

 Shortcut key for FAST access to order placements & reports

 Online fund transfer activated with 11 Banks


 Live Streaming Quotes

 Access all Trading Calls

 Advanced Charting features

 Create your own technical rules for trading

 A Single Trading Screen for all segments


 The HNI product.

 Personalized portfolio tracking & restructuring advice.

 Monthly stock valuation statements, report profitability statement.

 Daily report on transaction sent in printed format as well as available online.

 Research-based investment advice tailored for different investment approaches

 Share offline:-

As the internet has taken over the physical trade, the same is the situation in trading in
shares. Even the internet has not spared trading in shares and still the conventional
system of offline trading continues in today’s world.

 Merits of offline trading

 Low brokerage
 Less margin
 Flexibility in credit period
 Customized advice

 Demerits of offline trading

 Problems in getting in touch with the broker

 Limited clientele
 Problem of attention from the broker due to load
 Reliance on the broker’s information
 Customer has to believe what the broker says
 Broker Might not give the best price
 Reconciliation of account and cash settlements
 Paperwork
 Geographical Restriction


Sharekhan provides complete trading facility like they are giving Toll free numbers the
phone trading facility as an alternative of net trading where a customer can call “n”
number of times.

Toll Free numbers: 1800-22-7500


Local number : 079-30307600 (chargeable)

Exposure: For Intraday = 10 times

For Delivery = 04 times
Sharekhan is also providing the Margin on DP balance.

 Indexes of Equity market online

 NSE:

The national stock exchange of the India was the promoted by leading financial
institutions at the behest of the government of India, and was incorporated in November
1992 as a tax paying company. In April 1993, it was recognized as a stock exchange
under the securities contracts( Regulation) Act, 1956. NSE commenced its operation in
the wholesale Debt Market (WDM) segment in June 1994. The capital market (Equities)
segment of the NSE commenced operation in November 1994.
 BSE:
The Bombay stock exchange is the oldest stock exchange in Asia. It is located at Dalal
Street, Mumbai, India.

The Bombay stock exchange was established in 1985. There are around 3500 Indian
companies listed with stock exchange, and has the significant stock volume. As of 29
may 2007, the market capitalization of the BSE is about Rs. 40.5 trillion. 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.

 Derivatives
Derivatives are financial contracts whose value/price is depends on the behavior
of price of one or more basic underling assets. These contracts are legally binding
agreement, made on the trading screen of stock exchange, buy or sell an asset in
future. The assets can be share, index, interest rate, bond, rupee- dollar exchange
rate, sugar, crude oil, soybean, cotton, coffee etc.


 Future:-

An agreement between two parties to buy or sell an asset at a certain time

in the Future at a certain price. Stock futures on certain specified securities and internet
rate futures are available for trading at NSE (NATIONAL STOCK EXCHANGE).All the
futures contracts are settled in cash.

 Options:-
An Options is a contract which gives the right, but not but or sell the underlying at a
stated price, which a buyer of an option pays the premium and Options are of two types
– calls and put.

give the buyer the right but not the obligation to buy a given quantity of the underlying
asset, at a given price on or before a given future date. Calls also known as bulls.

give the buyer the right, but not obligation to sell a given quantity of the underlying asset
at a given price on or before a given date. Puts also known as bears.

 Commodities online:-

Commodities are agreements to buy and sell virtually anything except, for some reason,
onions. The primary commodities that are traded are oil, gold and agricultural products.
Commodity derivatives comprise of raw materials and products that can be traded on
special commodity exchanges across the country. Commodities expands customer
investing horizon from investing in a metal company to trading in the metal itself.
Trading in commodity derivative provides unique market opportunities for a wider
section of participants like: investor, hedgers, arbitragers, traders, manufactures planters,
exporters and importers. While trading commodities through an exchange, there are no
transportation charges, no insurance costs, no storage charges and complete security
when customer trade though an exchange. Customer can trade in commodities at nominal
costs and carry the investment in paper from as customer want. The fundamentals for
commodities are quite simple: price is a function of demand and supply.

Sharekhan provides commodity facility. Sharekhan trades on two major commodity

exchanges in India.
1) MCX


 Indexes of commodities
 MCX:


electronic commodity futures exchange.MCX is an independent commodity exchange
based in India. It was established in 2003 and is based in Mumbai. The turnover of the
exchange for the period Apr-Dec 2008 was INR 32 Trillion.MCX offers futures trading
in Agricultural Commodities, Bullion, Ferrous & Non-ferrous metals, Pulses, Oils &
Oilseeds, Energy, Plantations, Spices and other soft commodities. MCX has also setup in
joint venture the National Spot Exchange a purely agricultural commodity exchange and
National Bulk Handling Corporation (NBHC) which provides bulk storage and handling
of agricultural products.


National Commodity & Derivatives Exchange Limited (NCDEX) is a professionally

managed online multi commodity exchange promoted by ICICI Bank Limited (ICICI
Bank), Life Insurance Corporation of India (LIC), National Bank for Agriculture and
Rural Development (NABARD) and National Stock Exchange of India Limited (NSE).
Punjab National Bank (PNB), CRISIL Limited (formerly the Credit Rating Information
Services of India Limited), Indian Farmers Fertiliser Cooperative Limited (IFFCO) and
Canara Bank by subscribing to the equity shares have joined the initial promoters as
shareholders of the Exchange.

NCDEX is the only commodity exchange in the country promoted by national level
institutions. This unique parentage enables it to offer a bouquet of benefits, which are
currently in short supply in the commodity markets. The institutional promoters of
NCDEX are prominent players in their respective fields and bring with them institutional
building experience, trust, nationwide reach, technology and risk management skills.
NCDEX is a public limited company incorporated on April 23, 2003 under the
Companies Act, 1956. It obtained its Certificate for Commencement of Business on May
9, 2003. It has commenced its operations on December 15, 2003. NCDEX is a nation-
level, technology driven de-mutualized on-line commodity exchange with an independent
Board of Directors and professionals not having any vested interest in commodity
markets. It is committed to provide a world-class commodity exchange platform for
market participants to trade in a wide spectrum of commodity derivatives driven by best
global practices, professionalism and transparency.

NCDEX is regulated by Forward Market Commission in respect of futures trading in

commodities. Besides, NCDEX is subjected to various laws of the land like the
Companies Act, Stamp Act, Contracts Act, Forward Commission (Regulation) Act and
various other legislations, which impinge on its working. NCDEX is located in Mumbai
and offers facilities to its members in more than 390 centers throughout India. The reach
will gradually be expanded to more centers.
NCDEX currently facilitates trading of thirty six commodities - Cashew, Castor Seed,
Chana, Chilli, Coffee, Cotton, Cotton Seed Oilcake, Crude Palm Oil, Expeller Mustard
Oil, Gold, Guar gum, Guar Seeds, Gur, Jeera, Jute sacking bags, Mild Steel Ingot,
Mulberry Green Cocoons, Pepper, Rapeseed - Mustard Seed ,Raw Jute, RBD Palmolein,
Refined Soy Oil, Rice, Rubber, Sesame Seeds, Silk, Silver, Soy Bean, Sugar, Tur,
Turmeric, Urad (Black Matpe), Wheat, Yellow Peas, Yellow Red Maize & Yellow
Soybean Meal. At subsequent phases trading in more commodities would be facilitated.



1. The preference of investors with respect to demat and physical shares is classified
under four age groups.


15 Physical

18-30 31-45 46-60 >60

Table -1 shows The highest preference of dematerialized shares is in the age group of 18-
30 and the highest preference for physical shares is in the age group of 46-60. Overall the
investors prefer dematerialized shares to physical shares.

2 Showing Occupation of the Respondents in investing share market





An analysis of chart 2 shows Businessman, Executives and Professionals make up

50% of the total respondents. They have experience and knowledge about the share
market. The number of students, which is around 18%, shows that young people want to
start investing in shares and gain knowledge. Housewives are also getting into shares as
their numbers have started to appear now.

3 showing opinion about the courtesy of the staff.

No. of respondents

9 3
46 friendly
42 Rude

As seen from chart 3, 46% of the investors said that courtesy of the staff pleasant, 42%
said friendly, 9 % unpleasant and 3% claim about rude.

4 and chart showing problem faced by respondents regarding parking space


no 32

yes 68

0 10 20 30 40 50 60 70

As seen from table 4, Out of 85 respondents , 68% told that he faced the problem while
parking while 32% person told no.

5 Showing Respondents opinion about the ambience of and comfort :

No. of Investors

17.64 Excellent
40 32.94
Not Satisfactory

An analysis of chart 4 shows that 15 investors (17.64%) expressed the opinion excellent
about the ambience and comfort at the Depository Participant office of Sharekhan. 28
Investors (32.94%) of the investor respondents feel the ambience and comfort of
Sharekhan is ‘good’ and 34 respondents (40%) say they are satisfied and the rest (9.42%)
are of the opinion ‘not satisfactory’.
6 showing opinion about the brokerage charges.

No. of respondents

16 Reasonable
No comments

As seen from chart 6 . out of the 85 respondent only 15% people told that brokerage
charge is reasonable and 65 % told it is expensive. 16% told it is normal Rest of them
didn’t give any comment
10 showing experience for opening demat account in sharekhan .

No. of respondents

11 18
9 Easy

As seen from chart 10, 62% told tedious documentation while only 18% told it is easy
11 and chart showing status of the facility provided

38 happy
not satisfied

As seen from table 11, 38% person told that they are happy with the facility And 53% are
satisfied and 9% not satisfied.
12 and chart showing Investment in different products of Sharekhan



As seen from table 12, many respondents invest in derivatives and equities compared to
commodities. Almost 38% of the business is from derivatives and 55% of the business in
equities and remaining 7% towards commodities.
13 showing opinion about overall rating about sharekhan .

No. of respondents

20 20
No comments

As seen from chart 13, 20% customer told Excellent , 39% told good And 18%

Aggressive Promotions: India Infoline Securities compared to its competitors

concentrates less on advertising and promotions, especially through electronic media. Its
competitors like Sharekhan, ICICI and Kotak are advertising aggressively through media.
Hence India Infoline should concentrate more on advertising through print and electronic

Tapping Rural Market: The Indian rural investors market are relatively untapped, with
only small and private firms meeting the current demand. India Infoline Securities can
gain the “First Mover Advantage” over its competitors, especially in areas were
commercial crops are grown and the standard of living is high. These people do not have
much option to invest other than banks and post offices.

Reduce the initial account opening charges: The charge for opening a trading and
demat account in India Infoline securities is high compared to its competitors. This
influences the potential investors to open their account with another company which
provides the same at lower prices. Thus it acts as a mental barrier for potential customers,
who tend to overlook all other benefits offered by India Infoline . Hence India Infoline
should consider reducing their account opening charges.

Bring in more product differentiation: Product differentiation here means that India
Infoline securities should bring in more customized services and more value proposition
for large investors. It can reduce the brokerage charges for large investors which will
encourage them to invest more in the company.

Invest more on R&D: India Infoline should concentrate on its research and
development since most of its competitors are investing on R&D. This will help the
company to read the market better and will also be in a better position to understand the
needs of the customers. This can be extremely beneficial for India Infoline in the long
Many constraints were involved in doing this study. Some of them are as follows.
 The most significant limitation has been the individuals involved in this study
were very busy and did not spare much time in discussion.
 The sample size selected for the survey was too small as compared to large
 The project was carried out only in the Delhi, so findings on data gathered can be
best true for Delhi only and not applicable to other parts of state and country.
Indian stock market is a market where sentiments play a major role in price; hence 100%
accurate predictions cannot be made about its future path

Trading shares online is becoming a very popular way of making money and this means
that there are many options as to how you can get started. The easiest way is to do so on
the Internet by using an online share trading account. It will only take a few minutes to
set up and you can get you started straight away! However, it pays to take the time to
research the best brokers available to ensure you are getting the best service. Firstly you
should check that the service you choose provides you with help, should you need it. Not
only does this include technical support, but many share accounts will give you access to
information about trading, the latest figures, historical reports and much more. Some of
the top online brokers even offer personal trading advice!
Many online accounts will also let you sign up for free for a demo account. Whilst the
trades you make are not real, this is a great practice at the same time as being a good way
of comparing different available accounts. Use this time to test out their support if
possible. You also want to make sure that all of the systems and software they have in
place makes sense to you and is easy to use. Nothing should get in the way of your
success! Take some time to compare a few different accounts to make sure you find one
that suits your needs.

The Internet really has seen many changes in trading of shares. This is why finding the
right online share trading account for you is so important for your share trading success.

 LTV Ratio will not exceed a particular percentage. This percentage differs from
HFI to HFI and the components of the value of property are covered in Cost of
 Elastic can be stretched only to a certain extent. The loan tenure also will not go
beyond 20 years. However, HFIs do provide for different tenures with different
terms and conditions.
 Your EMI normally does not exceed 50% of your Gross Monthly income.
 The total monthly payment towards all the loans you have availed of, including
the present one, will normally not exceed 50% of your Gross Monthly Income.
 Your loan eligibility is calculated using LTV, IIR and FOIR norms and the lowest
from the three is chosen.
 Your profile is considered by the HFI before your repayment capacity is judged.
 If the HFI insists on a personal guarantor, you need to provide one before the
disbursement of your loan.
 Your property should be both technically and legally clear before your loan can
get disbursed by the HFI.
 In case you have bought an under construction property, your loan will be partly
disbursed, as per the stages of construction and PEMI needs to be paid on it.
 The disbursement, in most cases, will be in the name of the builder or the seller or
the society or the development authority unless you have made some payment to
 Repayment of the loan is either via Deduction Against Salary, Post Dated
Cheques, standing instructions or by cash / DD.
 You can either choose to repay the loan using the Annual rests or Monthly rests.


AGE ______________________________ GENDER

Q.1 What is your education qualification?

 higher Secondary
 senior secondary
 Graduate
 Post Graduate
 professional degree holder

Q.2 What is your annual income?

 Below 100000
 1,00,000 – 2,00,000
 2,00,000 – 3,00,000
 3,00,000 – 4,00,000
 Above 4,00,000

Q.3 What percentage of your monthly household income could be available for
 Less than 5%
 5% to 10%
 10% to 15%
 15% to 20%
 More than 20%
Q.4 Where do you often invest your money?
 Equity
 Mutual fund
 Insurance
 Term deposits
 Others

Q.5 What is the primary objective of your investment?

 Capital appreciation
 Source of income
 Retirement planning
 Wealth preservation
 Education funding /others

Q.6 Do you owe a Computer?

 Yes
 No

Q.7 To operate a computer is easy for me

 Strongly agree
 Agree
 Can’t say
 Disagree
 Strongly disagree
Q.8 online trading is a secure way of trading
 Strongly agree
 Agree
 Can’t say
 Disagree
 Strongly disagree

Q.9 online trading is easy and fast way of trading?

 Strongly agree
 Agree
 Can’t say
 Disagree
 Strongly disagree

Q.10 At what time do you trade?

 Office Hours
 Non Office Hours
 Free Time


 Bombay Stock Exchange” Bseindia. 20 Mar. 2007 <http://www.bseindia.com>.

 "Indiabulls Securities” Indiabulls.Com. 15 Mar. 2007
 "National Stock Exchange” nseindia. 25 Mar. 2007 <http://www.nseindia.com>.
 "Share khan Securities” Sharekhan.Com. 25 Mar. 2007
 “India Infoline Securities” India-Infoline.Com. 26 Mar. 2007
 " India Infoline Securities” 5paisa.Com. 26 Mar. 2007 <http://www.5paisa.com>.
 " Kotak Securities” kotak securities.Com. 26 Mar. 2007
 "ICICI Securities” ICICI securities.Com..25 Mar. 2007
 "Karvy” Karvy.Com. 25 Mar. 2007 <http://www.karvy.com>.
 “Online Investors & Traders” 2 Apr. 2007 <http://www.traderji.com>.
 "Motilal Oswal Securities” 25 Mar. 2007 <http://www.motilaloswal.com>.