A

Training Project Report on

“Stock market mechanism and Services of Anandrathi
in capital market”

PREPARED BY
Pawan Kumar

A Report submitted in partial fulfillment of the

requirements of MBA
(2008 – 2010)
Dept. of Commerce & Management
University of Kota, Kota

Under Supervision of:

Anand Rathi Financial Services Ltd.
Jaipur

Date: 01/12/2009 Submitted to:

Dept of Commerce &
Mgmt University of
Kota,
Kota (Raj.)

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 DECLARATION

I hereby declare that this training

program entitled “Stock market
mechanism and Services of
Anandrathi
in capital market” is my work, carried out
under the guidance of my guide Mr.
Rajkumar Jain, Mr. Vinod Pandey &
other employees of company. This report
neither full nor in part has ever been
submitted for award of any other degree
of either this university or any other
university.

(Pawan Kumar)

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CERTIFICATE

Page | 3
 ACKNOWLEDGME
NT

I gratefully acknowledge the expert

support and guidance extended to me by
ANANDRATHI and the guidance of Mr.
Rajkumar Jain AND Mr. Vinod pandey and
other employees of company as regards this
project and the subsequent report. There
impartial and enlightened guidance and the
sophisticated communication and the
commodities knowledge has been on immense
help and has been paramount in this project
and report maintaining and further meeting the
requisite standards and the dead lines.

Page | 4
 (Pawan Kumar)

COMPANY PROFILE

ORGANIZATION HISTORY

• Company Profile
• Milestones
• AR Core Strengths
• Management Team

About AnandRathi

AnandRathi (AR) is a leading full service securities

firm providing the entire gamut of financial services.
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 The firm, founded in 1994 by Mr. AnandRathi,
today has a pan India presence as well as an
international presence through offices in Dubai and
Bangkok. AR provides a breadth of financial and
advisory services including wealth management,
investment banking, corporate advisory, brokerage &
distribution of equities, commodities, mutual funds
and insurance, structured products - all of which are
supported by powerful research teams.

The firm's philosophy is entirely client centric, with

a clear focus on providing long term value addition
to clients, while maintaining the highest standards of
excellence, ethics and professionalism. The entire
firm activities are divided across distinct client
groups: Individuals, Private Clients, Corporate and
Institutions and was recently ranked by Asia Money
2006 poll amongst South Asia's top 5 wealth
managers for the ultra-rich.

In year 2007 Citigroup Venture Capital International

joined the group as a financial partner.

Equity & Derivatives Brokerage

AnandRathi provides end-to-end equity solutions to institutional
and individual investors. Consistent delivery of high quality
advice on individual stocks, sector trends and investment strategy
has established us a competent and reliable research unit across
the country.

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Clients can trade through us online on BSE and NSE for both
equities and derivatives. They are supported by dedicated sales &
trading teams in our trading desks across the country. Research
and investment ideas can be accessed by clients either through
their designated dealers, email, web or SMS

Milestones

1994:

Started activities in consulting and Institutional equity sales with

staff of 15

1995:

Set up a research desk and empanelled with major institutional

investors

1997:

Introduced investment banking businesses

Retail brokerage services launched

1999:

Lead managed first IPO and executed first M & A deal

Page | 7
2001:

Initiated Wealth Management Services

2002:

Retail business expansion recommences with ownership model

2003:

Wealth Management assets cross Rs1500 crores

Insurance broking launched

Launch of Wealth Management services in Dubai

Retail Branch network exceeds 50

2004:

Commodities brokerage and real estate services introduced

Wealth Management assets cross Rs3000crores

Institutional equities business re-launched and senior research

team put in place

Retail Branch network expands across 100 locations within India

2005:

Real Estate Private Equity Fund Launched

Retail Branch network expands across 200 locations within India

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2006:

AR Middle East, WOS acquires membership of Dubai Gold &

Commodity Exchange (DGCX)

Ranked amongst South Asia's top 5 wealth managers for the

ultra-rich by Asia Money 2006 poll

Ranked 6th in FY2006 for All India Broker Performance in

equity distribution in the High Net worth Individuals (HNI)
Category

Ranked 9th in the Retail Category having more than 5% market

share

Completes its presence in all States across the country with

offices at 300+ locations within India

2007:

Citigroup Venture Capital International picks up 19.9%

equity stake

Retail customer base crosses 200 thousand

Establishes presence in over 450 locations

2009:
Started with Currency Derivatives which deals
only in USD & INR.

AR Core Strengths

Page | 9
 Breadth of Services

In line with its client-centric philosophy, the firm offers to its

clients the entire spectrum of financial services ranging from
brokerage services in equities and commodities, distribution of
mutual funds, IPO’s and insurance products, real estate,
investment banking, merger and acquisitions, corporate finance
and corporate advisory.

Clients deal with a relationship manager who leverages

and brings together the product specialists from across the
firm to create an optimum solution to the client

Management Team

AR brings together a highly professional core management

team that comprises of individuals with extensive business as
well as industry experience.

In-Depth Research

Our research expertise is at the core of the value

proposition that we offer to our clients. Research teams
across the firm continuously track various markets and
products. The aim is however common - to go far deeper

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than others, to deliver incisive insights and ideas and be
accountable for results.

Management Team
The senior Management comprises a diverse talent
pool that brings together rich experience from across
industry as well as financial services.

Mr. Anand Rathi - Group Chairman

Chartered Accountant
Past President, BSE
Held several Senior Management positions with one
of India's largest industrial groups

Mr. Pradeep Gupta - Vice Chairman

Plus 17 years of experience in Financial Services

Mr. Amit Rathi - Managing Director

Chartered Accountant & MBA
Plus 11 years of experience in Financial Services

Page | 11
Board of Directors | Key Business Heads

Anand Rathi | Founder & Chairman

Prior to establishing his own company, Mr. Rathi

headed Indian Rayon & Industries, as Senior
President. He has held a series of responsible
positions with the Birla group and was also
instrumental in setting up of Birla Global Finance. In
his 40 years of being in the corporate world, Mr.
Rathi has held several key positions on various
regulatory and professional boards, including,
President, Bombay Stock Exchange (BSE), and
Member, Central Council of Institute of Chartered
Accountants (ICAI). As President of BSE, Mr. Rathi
played a key role in the expansion plan of BOLT,
the online trading system of the Exchange and
setting up of the Trade Guarantee Fund. He was
the moving force behind setting up of the Central
Depository Services (India) Ltd.He is a gold
medalist Chartered Accountant.

Page | 12
Pradeep Gupta | Co-founder & Vice chairman

With over twenty years experience in the securities

market. Co–founder and key driver of the Retail and
Institutional Equities business of the group.

Amit Rathi | Managing Director

A rank holder Chartered Accountant and an MBA

from Leonard N. Stern School of Business, New
York University joined the group in 1998. He was
instrumental in establishing the group’s private
wealth management and investment banking
businesses. Calling him a ‘financial guru’, the Times
of India group, listed Amit in 2008 amongst the top
51 young Marwaris in India (under the age of 40).

P G Kakodkar | Director

Former Chairman of State Bank of India. Director in

Financial Technologies (India). Director in Sesa
Goa Ltd. Director in SBI Funds Management Pvt
Ltd & the Multi Commodity Exchange of India Ltd
and a M. A. in Economics.

Page | 13
Dr. S A Dave | Director

Former Chairman Securities & Exchange Board of

India (SEBI) and Deputy Director of the RBI.
Former Chairman Unit Trust of India (UTI). Member
of General Committees of Government of India &
Financial Reforms and Chairman CMIE 1998 till
date. And a M. A. (USA) with Ph D in Economics.

C D Arha | Director

Formerly Secretary in the Union Ministry of Mines.

Special Secretary & Additional Secretary in the
Ministry of Coal. Resident Chief Information
Commissioner – AP (Right to Information Act).
Commissioner Civil Supplies (AP). Chairman & MD,
APSEC. With a M .A. (History) and diploma
Management & Administration of Rural
Development.

Ajit Bhushan | Director

Managing Director Citi Venture Capital London

Over 17 years experience with Citi. Joined CVC
international in 2001. Worked on Strategy and
business development for Citibank in CEEMEA
region and managed Cash Management Business
for Citi in Poland and India. B Tech (IIT Delhi) and
an MBA (IIM Ahmedabad)

Page | 14
Ratnesh Kumar | Head – Institutional Equities

Previously MD & Equity Strategist & Head of India

Research with Citigroup (8 years) and CLSA (4
years). Has 15 years India research experience.
Led India research teams to #1 rankings in
Institutional Investor polls in 5 out of last 9 years.

Rakesh Rawal | National Head – Wealth

Management

Previously Vice President, Private Wealth

Management, Deutsche Bank. With over 9 years
career in Wealth Management, he has held key
leadership roles in illustrious organisations like
Hindustan Unilever and Ranbaxy Laboratories. A B
Tech (IIT – Kanpur) and MBA (Finance) from
JBIMS

Roy Rodrigues | Head – Investment Banking

Page | 15
Previously Head – Investment Banking for India at
Bear Stearns (New York).He also was Global Head
of IT Services and BPO investment banking
coverage. He has also spent four years with Arthur
Anderson in Bombay (India). An MBA (Finance and
International Business) from Stern School of
Business, New York University. He is also a
qualified Chartered Accountant and Cost
Accountant.

Amandeep S Chahal | Head – Retail

An MBA from Symbiosis, in his 14 years of work

experience Aman has worked with Standard
Chartered Bank National Sales Manager Capital
Markets Retail and Regional Head Priority Banking.
He has also worked with illustrious organizations as
Citibank and Yes Bank amongst others. Prior to
joining ARFSL in May 2006, he was the head of
Yes Bank’s retail operations in the North.

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Our research expertise is at the core of the value
proposition that we offer to our clients. Research
teams across the firm continuously track various
markets and products. The aim is however common
- to go far deeper than others, to deliver incisive
insights and ideas and be accountable for results.
AR research processes incorporate quantitative
areas well as qualitative analyses. This multi-
pronged approach helps us to provide superior risk-
adjusted returns for our clients.

AR analysts provide objective and decisive

research that is designed to enable clients to make
informed investment decisions.

The team covers entire spectrum of financial

markets from equities, fixed income, and
commodities to currencies. They also cover the
global markets, to give clients an unparalleled
macro-view of the investment opportunities across
the globe.

List Of DPs

28 ANAND RATHI SEAGULL HOUSE 1ST MR.DURGA 022- 022-

FINANCIA L FLOOR, CHAKALA MISHRA 56983770 56983738
SERVICES LTD ANDHERI EAST
- A NDHERI MUMBAI
MAHARASHTRA
INDIA 400099
29 ANAND RATHI SEAGULL HOUSE, MR.RAJENDRA 022- 022-
FINANCIA L PLOT NO.6 SHIVAJI MANUDHAN E 56983770 26983738
SERVICES LTD COLONY CHAKALA,
-C ANDHERI EAS T
OMMODITIES MUMBAI
MAHARASHTRA
INDIA 400099
30 ANAND RATHI SH.SUDHIR SINGH 1- MR. PUNEET 0135- 0135-
FINANCIA L NASH VILLA ROAD DHINGRA 3209603 2712370
SERVICES LTD OPP.KUMAR DEPT
- D EHRADUN STORE S

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 DEHRADOON
UTTARANCHAL
INDIA 248001
31 ANAND RATHI 101, APOLLO MR.NISHANT 0731 0731
FINANCIA L AVENUE 1ST FLOOR, NYATI 3015017 265837
SERVICES LTD 30-B, OLD PALASIA
- I NDORE INDORE MADHYA
PRADESH INDIA
452018
32 ANAND RATHI C-98 SANGHI MR.RAJ 0141- 0141-
FINANCIA L UPASANA TOWERS KUMAR JAIN 2370352 2365135
SERVICES LTD 1ST FLOOR,NEAR
- J AIPUR ASHIN SA CIRCLE
SUBHASH MARG, C
SCHE ME JAIPUR
RAJASTHAN INDIA
302001
33 ANAND RATHI B - 2, SHUBHAM MR.RAKESH 0522 0522
FINANCIA L CENTR E, 5TH KUMAR 4003168 3919653
SERVICES LTD FLOOR, C.G.ROAD,
- L UCKNOW CHAKALA ,
ANDHERI (E AST)
MUMBAI
MAHARASHTRA
INDIA 400099
34 ANAND RATHI SHUBHAM CENTRE, MR. ANAND 022- 022-
FINANCIA L B-2, 5TH FLOOR RATHI 40013871 46983770
SERVICES LTD. CARDINAL
GRACIOUS RO AD
CHAKALA, ANDHERI
(E) MUMBAI
MAHARASHTRA
INDIA 400099
35 ANAND RATHI S-1, SHRADHA MR. RAVINDRA 0712- 0712-
FINANCIA L HOUSE, 3RD FLOOR MALOO 2545625 5612700
SERVICES LTD. KINGS WAY,
- NAGPUR OPP.BANK OF INDIA
NAGPUR
MAHARASHTRA
INDIA 440018

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In India where ANANDRATHI is present in 21
STATES:

Andhra Pradesh
Assam
Bihar
Chhattisgarh
Delhi
Goa
Gujrat
Haryana

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Jammu & Kashmir
Jharkhand
Karnataka
Kerala
Madhya Pradesh
Maharashtra
Orissa
Punjab
Rajasthan
Tamil Nadu
Uttar Pradesh
Uttaranchal
West Bengal

LIST OF PRODUCTS :

 Demat Accounts

 Mutual Funds

 Derivatives
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  Commodities

 Bonds

 Trading Account

 Insurance

SHARE MARKET

Definition
In economics, typically, the term market means the
aggregate of possible buyers and sellers of a thing
and the transactions between them.

The term "market" is sometimes used for what are

more strictly exchanges, organizations that facilitate
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the trade in financial securities, e.g., a stock
exchange or commodity exchange. A stock market,
or (equity market), is a private or public market for
the trading of company stock and derivatives of
company stock at an agreed price; these are
securities listed on a stock exchange as well as those
only traded privately. The size of the world stock
market is estimated at about $51 trillion. The stocks
are listed and traded on stock exchanges which are
entities a corporation or mutual organization
specialized in the business of bringing buyers and
sellers of stocks and securities together.

The role of stock exchanges

Stock exchanges have multiple roles in the economy,

this may include the following:

• Raising capital for businesses: The Stock

Exchange provides companies with the facility
to raise capital for expansion through selling
shares to the investing public.

Mobilizing savings for investment: When people

draw their savings and invest in shares, it
leads to a more rational allocation of
resources because funds, which could have
been consumed, or kept in idle deposits with
banks, are mobilized and redirected to
promote business activity with benefits for
several economic sectors such as agriculture,
commerce and industry, resulting in a
stronger economic growth and higher
productivity levels and firms.

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Facilitating company growth: Companies view
acquisitions as an opportunity to expand
product lines, increase distribution channels,
hedge against volatility, increase its market
share, or acquire other necessary business
assets. A takeover bid or a merger agreement
through the stock market is one of the
simplest and most common ways for a
company to grow by acquisition or fusion.

Redistribution of wealth: Stocks exchanges do not

exist to redistribute wealth. However, both
casual and professional stock investors,
through dividends and stock price increases
that may result in capital gains, will share in
the wealth of profitable businesses.

Corporate governance: By having a wide and

varied scope of owners, companies generally
tend to improve on their management
standards and efficiency in order to satisfy the
demands of these shareholders and the more
stringent rules for public corporations imposed
by public stock exchanges and the
government. Consequently, it is alleged that
public companies (companies that are owned
by shareholders who are members of the
general public and trade shares on public
exchanges) tend to have better management
records than privately-held companies (those
companies where shares are not publicly
traded, often owned by the company founders
and/or their families and heirs, or otherwise by
a small group of investors). However, some
well-documented cases are known where it is
alleged that there has been considerable

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 slippage in corporate governance on the part
of some public companies. Example,
Pets.com (2000), Enron Corporation (2001),
One.Tel (2001), Sunbeam (2001), Webvan
(2001), Adelphia (2002), MCI WorldCom
(2002), or Parmalat (2003), are among the
most widely scrutinized by the media.

Creating investment opportunities for small

investors: As opposed to other businesses that
require huge capital outlay, investing in shares
is open to both the large and small stock
investors because a person buys the number
of shares they can afford. Therefore the Stock
Exchange provides the opportunity for small
investors to own shares of the same companies
as large investors.

Government capital-raising for development

projects: Governments at various levels may
decide to borrow money in order to finance
infrastructure projects such as sewage and
water treatment works or housing estates by
selling another category of securities known
as bonds. These bonds can be raised through
the Stock Exchange whereby members of the
public buy them, thus loaning money to the
government. The issuance of such bonds can
obviate the need to directly tax the citizens in
order to finance development, although by
securing such bonds with the full faith and
credit of the government instead of with
collateral, the result is that the government
must tax the citizens or otherwise raise
additional funds to make any regular coupon

Page | 24
 payments and refund the principal when the
bonds mature.

Barometer of the economy: At the stock exchange,

share prices rise and fall depending, largely,
on market forces. Share prices tend to rise or
remain stable when companies and the
economy in general show signs of stability
and growth. An economic recession,
depression, or financial crisis could
eventually lead to a stock market crash.
Therefore the movement of share prices and in
general of the stock indexes can be an
indicator of the general trend in the economy.

Role of stock exchanges

Investment opportunities
Raising capital

Corporate governance

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 Mobilizing resources
Barometer of economy
Company growth
Govt. project development
Redistribution of wealth

Bombay Stock Exchange

Limited (the Exchange) is the oldest stock

exchange in Asia with a rich heritage. Popularly

known as "BSE", it was established as "The Native

Share & Stock Brokers Association" in 1875. It is

Page | 26
 the first stock exchange in the country to obtain

permanent recognition in 1956 from the

Government of India under the Securities Contracts

(Regulation) Act, 1956.The Exchange's pivotal and

pre-eminent role in the development of the Indian

capital market is widely recognized and its index,

SENSEX, is tracked worldwide

• India's oldest and first stock exchange:

Mumbai (Bombay) Stock Exchange. Established

in 1875. More than 6,000 stocks listed.

• Total number of stock exchanges in India:

22

• They are in: Ahmedabad, Bangalore,

Calcutta, Chennai, Delhi etc.

• There is also a National Stock Exchange

(NSE) which is located in Mumbai.

• There is also an Over the Counter

Exchange of India (OTCEI) which allows listing of

small and medium sized companies.

• The regulatory agency which oversees the

functioning of stock markets is the Securities and

Page | 27
Exchange Board of India (SEBI), which is also

located in Bombay.

Today, BSE is the world's number 1

exchange in terms of the number of listed

companies and the world's 5th in transaction

numbers.

SERVICES

BSE also has a wide range of services to

empower investors and facilitate smooth

transactions:

Investor Services: The Department of Investor Services redresses

grievances of investors. BSE was the first exchange in the country to
provide an amount of Rs.1 million towards the investor protection fund;
it is an amount higher than that of any exchange in the country. BSE
launched a nationwide investor awareness programme - 'Safe
Investing in the Stock Market' under which 264 programmes were held
in more than 200 cities.

The BSE On-line Trading (BOLT): BSE On-line Trading

(BOLT) facilitates on-line screen based trading in securities. BOLT is
currently operating in 25,000 Trader Workstations located across
over 359 cities in India.

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 BSEWEBX.com: In February 2001, BSE introduced the world's
first centralized exchange-based Internet trading system,
BSEWEBX.com. This initiative enables investors anywhere in the
world to trade on the BSE platform.

Surveillance: BSE's On-Line Surveillance System (BOSS)

monitors on a real-time basis the price movements, volume positions
and members' positions and real-time measurement of default risk,
market reconstruction and generation of cross market alerts.

BSE Training Institute: BTI imparts capital market training

and certification, in collaboration with reputed management institutes
and universities. It offers over 40 courses on various aspects of the
capital market and financial sector. More than 20,000 people have
attended the BTI programmes.

Awards
• The World Council of Corporate Governance
has awarded the Golden Peacock Global
CSR Award for BSE's initiatives in Corporate
Social Responsibility (CSR).

• The Annual Reports and Accounts of BSE for

the year ended March 31, 2006 and March
31 2007 have been awarded the ICAI awards
for excellence in financial reporting.

• The Human Resource Management at BSE

has won the Asia - Pacific HRM awards for
its efforts in employer branding through talent
management at work, health management at
work and excellence in HR through
Page | 29
 technology Drawing from its rich past and its
equally robust performance in the recent
times, BSE will continue to remain an icon in
the Indian capital market

Vision

"Emerge as the premier Indian

stock exchange by establishing
global benchmarks"

The National Stock

Exchange (NSE) is India's leading stock exchange

covering various cities and towns across the

country. NSE was set up by leading institutions to

provide a modern, fully automated screen-based

trading system with national reach. The Exchange

has brought about unparalleled transparency,

speed & efficiency, safety and market integrity.

NSE has played a

catalytic role in reforming the Indian securities

market in terms of microstructure, market practices

and trading volumes. The market today uses state-

of-art information technology to provide an efficient

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 and transparent trading, clearing and settlement

mechanism, and has witnessed several innovations

in products & services viz. demutualisation of stock

exchange governance, screen based trading,

compression of settlement cycles, dematerialisation

and electronic transfer of securities, securities

lending and borrowing, professionalisation of

trading members, fine-tuned risk management

systems.

Securities and Exchange Board of India

(SEBI):

The Securities and

Exchange Board of India (SEBI) is an autonomous body
established by an act of parliament in 1992. SEBI is controlled
by a statutory board consisting of one chairman and six
members. SEBI’s main objective is to protect the interest of
investors, and to regulate all securities market particularly the
share market. SEBI is a market regulator whose major functions
include regulation, superintendence and control of all securities
Page | 31
markets in India, overseeing the functioning of stock exchanges,
framing rules for trading practices, attending to and removing
investor grievances, framing rules for and regulating public
issues, training and education of investors, and all matters
pertaining to market intermediaries.

DEMATERIALISED
ACCOUNT

In India, a demat account, the

abbreviation for dematerialised account, is
a type of banking account which
dematerializes paper-based physical
stock shares. The dematerialised account
is used to avoid holding physical shares:
the shares are bought and sold through a
stock broker.

This account is popular in India. The

Securities and Exchange Board of India
(SEBI) mandates a demat account for
share trading above 500 shares. As of
April 2006, it became mandatory that any
person holding a demat account should
posses a Permanent Account Number
(PAN), and the deadline for submission of
PAN details to the depository lapsed on
January 2007.

 Procedure:
1. Fill demats request form (DRF)
(obtained from a depository participant or
DP with whom your depository account is

Page | 32
 opened).
2. Deface the share certificate(s) you want
to dematerialise by writing across
Surrendered for dematerialisation.
3. Submit the DRF & share certificate(s) to
DP. DP would forward them to the issuer /
their R&T Agent.
4. After dematerialisation, your depository
account with your DP would be credited
with the dematerialised securities.

 Required Documents:
The extent of documentation required to
open a demat account may vary
according to your relationship with the
institution. If you plan to open a demat
account with a bank, a savings, current
and, or other account for which the holder
have been issued a check book, such
holder has an edge over the non-account
holder. In fact, banks usually offer
additional incentives to customers who
open a demat account with them. Along
with the application form, your
photographs (with co-applicants) and
proof of identity/residence/date of birth
have to be submitted. The DPs also ask
for a DP-client agreement to be executed
on non-judicial stamp paper. Here is a
broad list:

- A canceled check, preferably MICR

- Proof of Identification
- Proof of Address
- Proof of Pan Card (mandatory)
- Recent photographs,

Page | 33
 For proof of identification and, or address

self-attested facsimile copies of PAN card,

Voter’s ID, Passport, Ration card, Driver’s

license, Photo credit card, Employee ID card,

Bank attestation, latest IT returns and, or

latest Electricity/Landline phone bill are

sufficient. While they only ask for

photocopies of the documents, they will need

the originals for verification.

Dematerialization of shares:

Dematerialization as the name suggests,

is a term used for conversion of shares from

their physical form to electronic form. This

conversion is done by NSDL and CDSL. The

CDSL acts as a depository for BSE, whereas

the NSDL acts as a depository for NSE. After

dematerialization, shares cease to exist in

their physical form.

Merits of dematerialization:

Page | 34
  No risk of being fake or stolen shares.

 No stamp duty while transfer of shares.

 Free from tedious paperwork as it was in the

physical form.

 Stock exchanges have now discarded the

concept of marketable lots, small lots and

odd lots.

Rematerialization:

Rematerialization is the reverse of

dematerialization. It means to convert the

electronically held shares back into physical form.

You have the complete freedom of conversion from

electronic form to physical form whenever you want

to do so.

 The benefits:
- A safe and convenient way to hold
securities;
- Immediate transfer of securities;
- No stamp duty on transfer of securities;
- Elimination of risks associated with
physical certificates such as bad delivery
fake securities, delays, thefts etc.;

Page | 35
 - Reduction in paperwork involved in
transfer of securities;
- Reduction in transaction cost;
- No odd lot problem, even one share can
be sold;
- Nomination facility;
- Change in address recorded with DP
gets registered with all companies in
which investor holds securities
electronically eliminating the need to
correspond with each of them separately;
- Transmission of securities is done by DP
eliminating correspondence with
companies;
- Automatic credit into demat account of
shares, arising out of
bonus/split/consolidation/merger etc.
- Holding investments in equity and debt
instruments in a single account

THE BULL AND THE BEAR

 Bull market

Page | 36
The Charging Bull in Bowling Green, New York
is a symbol of the bull market. A bull market
tends to be associated with increasing investor
confidence, motivating investors to buy in
anticipation of further capital gains. The longest
and most famous bull market was in the 1990s
when the U.S. and many other global financial
markets grew at their fastest pace ever.

In describing financial market behavior, the

largest group of market participants is often
referred to, metaphorically, as a herd. This is
especially relevant to participants in bull
markets since bulls are herding animals. A bull
market is also described as a bull run.

Example, the United States has been described

as being in a long-term bull market since about
1983, with brief upsets including the Panic of
1987 and the NASDAQ Crash in 2000.

Bear market
A bear market is described as being
accompanied by widespread pessimism.
Investors anticipating further losses are
motivated to sell, with negative sentiment
feeding on itself in a vicious circle.

Example, The most famous bear market in

history was 1930 to 1932, marking the start of
the Great Depression. A milder, low-level long-
term bear market occurred from about 1967 to
1983, encompassing the stagflation economy,
energy crises in the 1970s, and high
unemployment in the early 1980s.

Prices fluctuate constantly on the open market;

a bear market is not a simple decline, but a
substantial drop in the prices of a range of

Page | 37
issues over a defined period of time. By one
common definition, a bear market is marked by
a price decline of 20% or more in a key stock
market index from a recent peak over a 12-
month period. However, no consensual
definition of a bear market exists to clearly
differentiate a primary market trend from a
secondary market trend.

Investors frequently confuse bear markets with

corrections. Corrections are much shorter lived,
whereas bear markets occur over a longer
period with typically a greater magnitude of loss
from top to bottom.

Page | 38
PRIVATE WEALTH MANAGMENT

Introduction

Affluent individuals need sophisticated

advice and strategic guidance to capitalize on
opportunities to preserve, grow and transfer
their wealth. In addition, a desire exists
within wealthy families to simplify the
management of multigenerational needs and
lessen the profound emotional impact of
wealth on family members. AR offers the
most extensive platform of customized
servicing, individual strategies and products
to help meet the requirements of the affluent
private investor. We provide comprehensive,
integrated investment strategies to address
your wealth management needs. Working
closely with specialists across firm PWM
offers an array of products & services, which
includes AR's highly-rated research.

Philosophy

Page | 39
We at AnandRathi try and understand your
financial needs; to offer you personal advice
and expert analysis that you need to make
your assets go the Xtra mile. Our ability to
think far ahead and formulate a long-term
strategy, coupled with long hours of practice
and research are the key drivers, which make
your wealth work harder for you.

We believe that the key to build wealth lies

in allocating assets across various markets,
financial instruments and industry sectors.
Keeping this in mind we leverage our
expertise in scientific asset allocation, to help
you maximize returns and minimize risks.

Process: We realize the need to simplify the

complexities of the investment strategies and
we achieve this by offering highly
customized wealth management product -
LaXmi TM (let your Assets go the Xtra Mile
TM). Our Personalized Relationship
Managers along with the expert team of
analysts and advisors will assist you in
analyzing all your investment needs and
advice you on specialized solutions created
exclusively for you. We have a dedicated
research team who constantly screens the

Page | 40
market for investment prospects. The team
provides support in fine-tuning the
investment strategy & suggests how to
capitalize on these opportunities.

Research: Our research expertise is at the

core of the value proposition that we offer to
our clients. Research teams across the firm
continuously track various markets and
products. The aim is however common - to
go far deeper than others, to deliver incisive
insights and ideas and be accountable for
results. AR research processes incorporate
quantitative areas well as qualitative
analyses. This multi-pronged approach helps
us to provide superior risk- adjusted returns
for our clients. AR analysts provide objective
and decisive research that is designed to
enable clients to make informed investment
decisions. The team covers entire spectrum
of financial markets from equities, fixed
income, and commodities to currencies. They
also cover the global markets, to give clients
an unparalleled macro-view of the
investment opportunities across the globe.

Page | 41
BROKERAGE & DISTRIBUTION SERVICES

1 Equity & Derivatives Brokerage:

AnandRathi provides end-to-end equity
solutions to institutional and individual
investors. Consistent delivery of high quality
advice on individual stocks, sector trends and
investment strategy has established us a
competent and reliable research unit across
the country. Clients can trade through us
online on BSE and NSE for both equities and
derivatives. They are supported by dedicated
sales & trading teams in our trading desks
across the country. Research and investment
ideas can be accessed by clients either
through their designated dealers, email, web
or SMS.

2. Mutual Funds: AR is one of India's top

mutual fund distribution houses. Our success
lies in our philosophy of providing
consistently superior, independent and
unbiased advice to our clients backed by in-
depth research. We firmly believe in the
importance of selecting appropriate asset
allocations based on the client's risk profile.
Page | 42
We have a dedicated mutual fund research
cell for mutual funds that consistently churns
out superior investment ideas, picking best
performing funds across asset classes and
providing insights into performances of
select funds.

3. Depository Services: AR Depository

Services provides you with a secure and
convenient way for holding your securities
on both CDSL and NSDL. Our depository
services include settlement, clearing and
custody of securities, registration of shares
and dematerialization. We offer you daily
updated internet access to your holding
statement and transaction summary.

4. Commodities: Commodities broking - a

whole new opportunity to hedge business
risk and an attractive investment opportunity
to deliver superior returns for investors. Our
commodities broking services include online
futures trading through NCDEX and MCX
and depository services through CDSL.
Commodities broking is supported by a
dedicated research cell that provides both
technical as well as fundamental research.
Our research covers a broad range of traded

Page | 43
commodities including precious and base
metals, Oils and Oilseeds, agri-commodities
such as wheat, chana, guar, guar gum and
spices such as sugar, jeera and cotton. In
addition to transaction execution, we provide
our clients customized advice on hedging
strategies, investment ideas and arbitrage
opportunities.

5. Insurance Broking: As an insurance

broker, we provide to our clients
comprehensive risk management techniques,
both within the business as well as on the
personal front. Risk management includes
identification, measurement and assessment
of the risk and handling of the risk, of which
insurance is an integral part. The firm deals
with both life insurance and general
insurance products across all insurance
companies. Our guiding philosophy is to
manage the clients' entire risk set by
providing the optimal level of cover at the
least possible cost. The entire sales process
and product selection is research oriented
and customized to the client's needs. We lay
strong emphasis on timely claim settlement
and post sales services.

Page | 44
INSTITUTIONAL SERVICES

Institutional Equities: The Institutional

sales and trading team provides cutting edge
market information and investment advice to
clients, coupled with excellent execution
capabilities. A highly experienced and
reputed team of equity analysts supports the
sales team. There is an extensive focus on
research on companies, sectors and macro-
economy. The institutional equity team
tracks nearly 250 large and mid-sized
companies to give clients an unparalleled
breadth of ideas. We also provide Investment
Advisory Services for institutional clients in
India and overseas for investment in the
Indian equity markets.

Research: Our research expertise is at the

core of the value proposition that we offer to
our clients. Research teams across the firm
continuously track various markets and
products. The aim is however common - to
go far deeper than others, to deliver incisive
insights and ideas and be accountable for
results. AR research processes incorporate
quantitative areas well as qualitative
analyses. This multi-pronged approach helps
Page | 45
us to provide superior risk- adjusted returns
for our clients. AR analysts provide objective
and decisive research that is designed to
enable clients to make informed investment
decisions. The team covers entire spectrum
of financial markets from equities, fixed
income, and commodities to currencies. They
also cover the global markets, to give clients
an unparalleled macro-view of the
investment opportunities across the globe.

Page | 46
MANAGED INVESTMENT SERVICES

1. Portfolio Management Services (PMS):

AR Portfolio Management Service is a
discretionary investment service created to
meet the demand for more targeted
investment styles and opportunities. It offers
a range of specialized investment strategies
designed to capture opportunities across the
market spectrum. The range of products
varies from the highly defensive, capital-
protected to the most aggressive strategies in
the equities and derivatives markets. Our
investment process ensures that your strategy
and portfolio are built on solid foundations.
Together you and your relationship manager
select the strategy in line with your
individual goals. AR investment specialists
then construct and manage your portfolio in
accordance with the chosen investment
strategy.
2. Real Estate Opportunities Fund: AR
Real Estate Opportunities Fund is a private
equity fund for high net-worth individuals,
corporates and institutions, to invest in
equity-linked instruments in the Indian real
estate and infrastructure sectors. As part of
the structural reforms to further boost India's
economic growth, the government has
recognized the need for institutional finance
in the real estate sector. In early 2005, the
government has relaxed the FDI guidelines
in real estate and also allowed the setting up
of real estate investment funds under SEBI
guidelines. These developments are expected
to provide much needed capital to provide
for the increasing demand for quality real
estate in major urban centers across the
country. To capture this opportunity, AR has
brought together a team of specialists and
advisors to guide the fund's investments who
bring together expertise in the areas of real
estate consulting, development, legal and
financial structuring.

INSTITUTIONAL WEALTH
MANAGEMNET

Introduction

Corporate and Institutional treasuries need

ever more sophisticated advice that is backed
by serious and credible research. AR IWM
provides its institutional clients integrated
wealth management solutions across global
markets, which are backed by proprietary
global economic & investment research.

We understand that your needs could range

from finding short-term surplus management
strategies to higher yielding and long term
investments. The IWM team brings together
the highly-rated AR research across fixed
income, currencies and equities markets to
provide investment solutions that meet your
complex needs - from simple money-market
mutual funds to complex arbitrage strategies
in the equities or commodities markets.

Products

Equity & Derivatives

Mutual Funds
Depository Services
Commodities
Insurance
IPOs
Client List
ACC Nerol India
Baye ac n
r Grasi Rayo
Cent m n
ury Gujar Jinda
Texti at l
les Amb Grou
Clari uja p
ant Cem Larse
CRIS ents n &
IL Gujar Toub
Crom at ro
pton Pipav Mast
Grea av ek
ves Port Mahi
Dabu Hein ndra
r z &
Data India Mahi
matic Hind ndra
s alco Ray
GE Hind mond
Ship ustan s
ping Leve Sterli
Godr r te
ej H&R Grou
Good Johns p
lass on Syng
IDFC enta
 Tata Trent Wart
Iron VSN sila
& L
Steel
Research: Our research expertise is at the core of
the value proposition that we offer to our clients.
Research teams across the firm continuously track
various markets and products. The aim is however
common - to go far deeper than others, to deliver
incisive insights and ideas and be accountable for
results. AR research processes incorporate
quantitative areas well as qualitative analyses. This
multi-pronged approach helps us to provide superior
risk- adjusted returns for our clients. AR analysts
provide objective and decisive research that is
designed to enable clients to make informed
investment decisions. The team covers entire
spectrum of financial markets from equities, fixed
income, and commodities to currencies. They also
cover the global markets, to give clients an
unparalleled macro-view of the investment
opportunities across the globe.

CORPORATE ADVISORY SERVICES:

Introduction: AnandRathi Advisors assists

companies in realizing tangible
improvements in various facets of their
businesses by providing a range of corporate
advisory services that includes the entire
 gamut from financial, organisational and
operational restructuring, to profit
improvement and business turnaround
strategies. Highly qualified and thoroughly
professional, our specialists, experts and
associates assist you in conceptualising
problems and devising effective solutions,
whatever be your need.

Successful assignments undertaken for

leading organisations in India as well as
overseas bear ample testimony to our wide-
ranging capabilities, utilising our
unparalleled business know-how to give you
the competitive edge. We have successfully
handled various assignments under industry
segments like refinery, cement, mining,
power, paper, metals, airlines and optic fibre.

Services

1. Performance Improvement and Cost

Reduction

2. Business Strategy and Re-engineering

3. Financial, Business & Organizational

restructuring

4. Business Turn-around Strategies

5. Management Systems: MIS, Review &
Control Mechanism
 Our services :

 Risk Management

 Due diligence and research on policies

available

 Recommendation on a comprehensive
insurance cover based on clients needs

 Maintain proper records of client

policies

 Assist client in paying premiums

 Continuous monitoring of client

account

 Assist client in claim negotiation and

settlement

6. IPO: We are a leading primary market

distributor across the country. Our strong
performance in IPOs has been a result of our
vast experience in the Primary Market, a
wide network of branches across India,
strong distribution capabilities and a
dedicated research team. We have been
consistently ranked among the top 10
distributors of IPOs on all major offerings.
Our IPO research team provides clients with

Page | 54
indepth overviews of forthcoming IPOs as
well as investment recommendations. Online
filling of forms is also available

Page | 55
 INVESTMENT BANKING AND
CORPORATE FINANCE

Investment Banking: AR Investment

Banking provides comprehensive services to
clients including raising money in the equity
capital markets to identifying strategic
alliances, mergers and acquisition
opportunities and debt financing &
restructuring advisory.

Corporate Finance: The AR Corporate

Finance team helps clients manage their
debt-financing needs by profiling business
and cash-flow risks, defining the alternative
sources of funding , building in multiple
variables such as currencies, fixed-floating,
tenure, collateral etc. in a comprehensive
manner and finally negotiating with the
prospective lenders / buyers. The team has
also built an impressive track-record in debt
restructuring based on its superior
understanding of business needs and
relationships with key lenders. The
Corporate Finance team has handled
assignments in businesses like paper,
hospitality, telecom, textiles and sugar.

Services
Page | 56
Investment Banking :

Merchant Banking

A highly experienced equity capital markets

team, a pan-India distribution presence and a
high level of quality and integrity in
executing client's transactions has enabled us
to provide tangible value to our clients'
businesses.

We bring quality independent advice and

excellent execution capabilities to create
landmark transactions for clients. Our track
record of successfully lead managed IPOs
includes Tips Industries, Emami, HCL
Infosystems and Provogue.

M&A, Private Equity

Our Mergers & Acquisition team works with

clients in creating lasting stakeholder value
through advice on mergers, acquisitions,
divestitures and private equity financing. The
team leverages on the firm's superior
understanding of businesses and tax and
regulatory environments as well as a deep
network of relationships across the
professional and corporate world. We have
worked extensively with clients in industries

Page | 57
 like cement, sugar, chemicals, power and
textiles for mergers and acquisition deals,
valuation and business restructuring.

Corporate Finance :

 Raising Cost-effective debt resources

in Rupee and Foreign Currency for Projects,
Working Capital and Specific needs.

 Financial Restructuring, CDR, OTS,

Interest Cost Reduction, Long-term Corporate
Loans for Working Capital Margins.

 Financial products and services in

hedging of interest and currency risks.

Page | 58
 Distribution Capabilities

1. Strong pan- India distribution network,

with presence at over 130 locations across India.

2. Leading distributor of equity related

products including IPOs & mutual fund

3. Have been consistently amongst the top 8

brokers, inspite of not being a lead manager.

4. 50000 plus captive Institutional clients

and HNIs

5. Strong after market support

Page | 59
 SWOT ANALYSIS

STRENGTHS

1. The Company has a good reputation with

the bulk of financial services under its arm to
offer to the customers at large.

2. The firm offers to its clients the entire

spectrum of financial services ranging from
brokerage services in equities and commodities,
distribution of mutual funds, IPOs and insurance
products, real estate, investment banking, merger
and acquisitions, corporate finance and corporate
advisory.

3. The management of the company is

consisting of highly trained and skilled
professionals

WEAKNESSES
1. Since the company is reaping the benefits
of its high level performance still due to the low
network there is a low customer base being
foreseen as compare to other competing
companies in Indian stock and security market.

Page | 60
OPPORTUNITIES

Immense opportunities in Indian Stock market

since very few investors have turned up as
compared to the past years.

Still few competitors fighting for the vast

securities market.

Increasing knowledge of DEMAT inspiring

hesitant investors to deal with Indian stock
market without any issue of being loss of their
money.

THREAT

1. Since there is a wide speculation involved in

securities and stock market, people prefer to
invest in mutual fund, insurance and in banks for
their safety of money.

2. Competitors are rising and making their

tremendously and many other FIIs and MNCs
are planning to come in to field of securities and

Page | 61
investment since rising finance sector is
attracting them a lot.

CONCLUSION

At the conclusion of the summer training project in

ANAND RATHI Securities Ltd., I would like to

conclude my opinion that there is a vast untapped

potential for a emerging and rising company like

ANAND RATHI to grow in business of securities

with other supporting financial services being

provided by the company.

Since a highly enriched corporate environment is

being provided in the company I gained a
tremendous knowledge and experience in respect to

Page | 62
learning the concept of Dematerlisation and its
significance to the shareholders and every new
prospects applying for the existing shares and/or any
new public offer (NPO) without any hesitation and
with all legal procedures so that the amount invested
could be remain secure and safe legally.

Thereby I came to realize the growth of the financial

sector as it is reaping success since the major rising
sector being notified as per my knowledge is finance
since company are establishing their business entities
in securities, mutual fund, insurance and many
others.

The experience of summer training was indeed a

worth in utilizing my professional approaches under
the prestigious like company ANAND RATHI
Securities Ltd.

RECOMMENDATIONS & SUGGESTION

1. This is recommended that there should

be an aggressive promotional measures need to
be adopted for capturing the market nation wide.

2. Further, it is suggested that knowledge

base campaign be organized near various

Page | 63
corporate offices so that young professionals
may be educated the benefit of investing via
ANAND RATHI Securities and the future
benefits which may be conducive for strengthen
their financial positions.

3. The Company should locate more

offices in the time to come so that the customers
living at different areas and not reachable to the
main areas would be able to access through sub
offices or centres.

4. Since investors are sometimes find

them selves in the position to Demat their
account, ANAND RATHI should pave measures
for such investors to ease them in dealing and
opening DEMAT account at their comfort
charging reasonable brokerage and commission.

BIBLIOGRAPHY

1. BOOKS & MAGZINES: -

Page | 64
 a) India Today
b) Business World

2. NEWSPAPER: -
a) The Times of India
b) The Hindu

WEBSITES: -
a) www.rathi.com

b) www.sebi.gov.in

c) www.thehindubusinessonline.com

d) www.capitalmarket.com

e) www.theeconomicstimes.com

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