Final Geojeet

BLDEAs Associations A.S.
Patil College of Commerce, MBA Programme, Bijapur

(Affiliated to Rani Chennamma University, Belgavi & Recognized by AICTE, New Delhi)
AUTONOMOUS
A PROJECT REPORT ON
Awareness Level of Commodity Market

GEOJIT BNP Paribas Financial Services
BIJAPUR
Submitted To:
RANI CHENNAMMA UNIVERSITY, BELGAVI FOR PARTIAL FULFILLMENT OF MASTER OF BUSINESS ADMINISTRATION
By RAVIKANT. JATAKAR MBA10013 UNDER THE GUIDANCE OF
INSTITUE GUIDE
ORGANISATION GUIDE
Prof. P. K. Gupta
Mr. Prasanna Ajarekar
B.L.D.E.AS A.S.PATIL COLLEGE OF COMMERCE BIJPAUR
BLDEAs Associations A. S. Patil College of Commerce, MBA Programme, Bijapur

(Affiliated to Rani Chennamma University, Belgavi & Recognized by AICTE, New Delhi)
CERTIFICATE
This is to certify that Mr. Ravikant. Jatakar has satisfactorily completed his summer in plant project on Awareness Level of Commodity Market at Geojit BNP Paribas Financial Services, BIJAPUR, in the fulfillment of the Requirement of Masters of Business Administration, during the academic year 2010-2011.
GUIDE Prof. P. K. Gupta
DIRECTOR Dr. Uttam Kinangi
Acknowledgement
I am very much pleased to place before you the Project Report based on my study in Geojit BNP Paribas Financial Services Ltd. BIJAPUR, the topic COMMODITY FUTURES AND AWARENESS LEVEL OF COMMODITY MARKET
Indeed I consider it as a pleasant duty, though equally difficult to acknowledge the motivating efforts of several people who have helped me in bringing this Project Report to find its delight. First of all I am expressing my deep sense of obligation to A. S. Patil College of Commerce, MBA Programme, Bijapur and also Dr. Uttam Kinangi, Director, for providing me opportunity to undertake this project and extend my sincere gratitude to my internal guide Prof. P. K. Gupta for his encouragement, that has helped me in prompt improvement and completion of project. My deep sense of thanks to external guide Mr. Prasanna Ajerekar, Branch Head For Geojit BNP Paribas Financial Services Ltd. Bijapurfor his valuable guidance and consent help during the project.
Thank You.
RAVIKANT JATAKAR
DECLARATION
I hereby declare that the project report entitled COMMODITY FUTURES AND AWARENESS LEVEL OF COMMODITY MARKET, submitted in partial fulfillment of the requirements for the partial fulfillment of II Semester of Master of Business Administration from A. S. Patil College of Commerce, MBA Programme, Bijapur, is my original work and not submitted for the award of any other Degree / Diploma of the Institute or any other University.
Place: Bijapur Date: (RAVIKANT. JATAKAR )
Table of Contents
Topics
Part I: Introduction
Executive Summary Research Methodology
Page No
Part II: Company Profile

Overview Milestones Management & BOD Vision, Values & Beliefs Products & Services
Part III: Theoretical Framework

Overview of Capital Market Derivatives Commodity Futures Indian Commodity Futures Hedging
Part IV: Analysis and Interpretation Part V: Findings & Suggestions

Findings Suggestions Conclusion
Part VI: Annexure

Questionnaire Data Code Sheet Bibiliography
Executive Summary
The function of the Financial Market is to facilitate the transfer of funds from surplus sectors to deficit sector. A derivative is a financial instrument that derives its value from an underlying asset. This underlying asset can be stocks, bonds, currency, commodities, metals etc., there are different types of derivatives like:Futures Forwards Options and Swaps A futures contract is an agreement between two parties to buy or sell the underlying asset at a future date at today's future price Options are deferred delivery contracts that give the buyers the right, but not the obligation, to buy or sell a specified underlying at a set price on or before a specified date. A forward contract is an agreement between two entities to buy or sell the underlying asset at a future date, at today's pre-agreed price. Swaps are private agreements between two parties to exchange cash flows in the future according to a prearranged formula. I have taken the commodity futures, to study and analyze as it is the emerging trend in the market, at Geojit Commodity Ltd. Geojit Commodity Ltd is the Subsidiary of the Geojit BNP Paribas Financial Service Ltd., it is serving in all the areas of financial market like Share trading, Security analysis and portfolio management and commodity trading. I conducted the survey in BIJAPUR City to know about the awareness of the Commodity Market.
Commodity as an asset class possess low correlation with equity and debt markets which makes it attractive as a portfolio diversifer.Also, long term volatility witnessed in commodity markets is lower than that witnessed in equity markets. When I conducted surveys with customers and, according to their view they prefer to invest mostly in commodities like Gold, Silver, Crude oil, etc. Because percentage of return is more of these commodities also risk is attached to it. As well as they prefer the Capital market because of its growth and they are having fare knowledge about that market. Most of the customers are not aware of the commodity market .So fare knowledge about the commodity market and its operation to the public.
INTRODUCTION
PROJECT AT GLANCE
Company Name: Geojit BNP Paribas Financial Services Ltd. Bijapur
Title
Awareness level of Commodity Market
Objective of the project are:

To understand the commodity market, its working and mechanism and types of commodities traded in India. To study the future contracts on commodities... To find the awareness level of commodity market in BIJAPUR city. To find the potential customers for commodity market. To know which commodity they prefer to invest in.
Research Methodology
B.L.D.E.AS A.S.PATIL COLLEGE OF COMMERCE BIJPAUR 8
Title:
Awareness level of commodity Market
Scope of the Study: The study is limited to only commodity market and it is only at Geojit BNP Paribas Financial Services Ltd. BIJAPUR. My study and analysis mainly based on the deciding on the future price for the products. I did this by selecting the three commodities Gold, Silver and Wheat as example. and study is limited to the BIJAPUR city only. Sources of Data: The data is collected through both the sources, they are: Primary data: The primary data has been collected from the employees of the Geojit Financial Services Ltd...by applying Random Sampling Method Secondary data: The secondary data has been collected from magazines, newspaper, books & Internet etc.
Selection of Sample:
Population: People of BIJAPUR City. Sampling Frame: People those who are trading regular basis. Sampling Size: 100Units. Sampling Method: Random Sampling.
Limitations of the Study:. The study is related to only the Commodity Futures Market. There is less investor in Commodity Market, so it is not possible to know the investors perception regarding the Commodity Market. The study is limited to BIJAPUR City.
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COMPANY PROFILE
Company Profile
OVERVIEW
Mr. C.J. George and Mr. Ranajit Kanjilal founded Geojit as a partnership firm in the year 1987. In 1993, Mr. Ranajit Kanjilal retired from the firm and Geojit became a proprietary concern of Mr. C .J. George. In 1994, it became a Public Limited Company by the name Geojit Securities Ltd. The Kerala State Industrial Development Corporation Ltd. (KSIDC), in 1995, became a co-promoter of Geojit by acquiring 24% stake in the company, the only instance in India of a government entity participating in the equity of a stock broking company. Geojit listed at The Stock Exchange, Mumbai (BSE) in the year 2000. In 2003, the Company was renamed as Geojit Financial Services Ltd. (GFSL). The board of the company consists of professional directors; including a Kerala government nominee with 2/3rd of the board members being Independent Directors. With effect from July 2005, the company is also listed at The National Stock Exchange (NSE). Geojit is a charter member of the Financial Planning Standards Board of India and is one of the largest DP brokers in the country. Company aims to be a niche player in the capital market through partnership philosophy by carefully selecting business associates and other intermediaries in other fields. The capital market scene is facing increasing challenges with the inflow from FII and increased competition from national as well as international players. Introduction of new products like margin funding is threatening to alter the competitive positioning of existing players. In order to effectively compete and continue its growth, Company has promoted a NBFC named Geojit Credits Private Limited and the future business plans of this Company are being worked out.
As a result of the robust and proactive strategies adopted by the management, Company achieved a good performance and the management is confident that the positive trend would continue in the coming years.
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Delisting Pursuant to the special resolution passed by the members at the 9th Annual General Meeting held on 27th September 2003 the Company has delisted its equity shares from Delhi Stock Exchange during December 2004 in accordance with SEBI (Delisting of Securities) Guidelines 2003.
Listing The Equity shares of the company are listed with the Stock Exchange, Mumbai. The Company has made an application to the National Stock Exchange of India for listing and Shares would be listed shortly.
Overseas Joint Ventures

Barjeel Geojit Securities, LLC, Dubai, is a joint venture of Geojit with Al Saud Group belonging to Sultan bin Saud Al Qassemi having diversified interests in the area of equity markets, real estates and trading. Barjeel Geojit is a financial intermediary and the first licensed brokerage company in UAE. It has facilities for off-line and on-line trading in Indian capital market and also in US, European and Far-Eastern capital markets. Doha Bank-Geojit in Qatar: Geojit has a tie up with Doha Bank in Qatar, which offers capital market services from the India Desk.
Milestones
The company crossed the following milestones to reach its present position as a leading retail broking house in India.
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1986 Geojit becomes a member of the Cochin Stock Exchange.
1994 The Kerala State Industrial Development Corporation (KSIDC), an arm of the Government of Kerala, becomes a co-promoter of the company by acquiring 24% equity stake in Geojit Financial Services Ltd., based on the evaluation report of Ernst & Young. This is the only venture in India where a state owned development institution is participating in the equity of a stock broking company. Geojit becomes a corporate broking house.
1995 Geojit comes out with a small Initial Public Offer (IPO) of Rs.9.5 million, which was oversubscribed by 15 times. Geojit's issued and subsribed equity capital increased to Rs.30 million and KSIDC's equity stake comes down to 17%. Geojit becomes a member of the National Stock Exchange (NSE) and installs its first trading terminal in Cochin, Kerala.
1996 The company launches Portfolio Management Services after obtaining required registration (Portfolio Management) from Securities Exchange Board of India (SEBI).
1997 Geojit becomes a Depository Participant under National Securities Depository Limited (NSDL) and begins providing Depository Services through its branches.
1999
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Geojit becomes a member of The Stock Exchange, Mumbai (BSE) and activates Bombay Online Terminals (BOLT) in different branches. The customer base of Geojit crosses the 50,000 mark.
2000 Geojit becomes the first broking firm in the country to offer online trading facility. The then SEBI Chairman, Mr. D.R.Mehta inaugurates the facility on 1st February 2000. Commences Derivative Trading after obtaining registration as a Clearing and Trading Member in NSE. Establishes the first Bank Gateway in the country for Internet Trading.
2001 Geojit's customer base crosses 100,000. Becomes India's first DP to launch depository transactions through Internet. Establishes Joint Ventures in the UAE for serving NRI clients. The company issues bonus shares in the ratio of 1:1.
2002 Geojit ties up with MetLife for the marketing and distribution of insurance products across the country. The company becomes the first online brokerage house to launch integrated internet trading system for both cash and derivatives segments. Sheikh Sultan Bin Saud Al Oassemi, a member of the ruling family of Sharjah, UAE, joins the Board of Directors of Geojit.
2003 Geojit Commodities Limited, a wholly owned subsidiary of Geojit, becomes member of National Multi-Commodity Exchange of India Ltd., National Commodity & Derivatives Exchange Ltd., Multi Commodity Exchange and launches Commodity Futures Trading in rubber, pepper, gold, wheat and rice
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Geojit Commodities Limited launches Online Futures Trading in multiple commodities namely, agri-commodities, precious metals like gold and silver, with furnace oil. Geojit raises more than Rs.100 million through issue of preferential shares.
2005 Barjeel Geojit Securities LLC becomes a member of Dubai Gold Commodity Exchange. Customer base of Geojit crosses 250,000. Geojit's reach spreads through a network of more than 300 branches. The company issues bonus shares in the ratio of 1:1. Geojit Credits, a subsidiary of Geojit Financial Services Ltd. registers with Reserve Bank of India as a Non-Banking Financial Company (NBFC). The company gets listed on National Stock Exchange of India Limited. The company implements Employees Stock Option Scheme. The company opens a first of its kind - all women's branch in Cochin.
2006 Geojit re launches Internet trading on Reuters TIB Mercury Platform.
2007 BNP Paribas takes a stake in the company equity, making it the single largest sharelholder.
Establishes joint venture in Saudi Arabia to serve the Saudi national and the NRI
2008 BNP Paribas Securities India (P) Ltd. a Joint Venture with BNP Paribas S.A. for Institutional Brokerage 1st brokerage to offer full direct market access execution in India for institutional clients.
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2009 Launch of property services division Launch of online trading in currency derivatives Consequent to BNP Paribas becoming the largest stakeholder in Geojit Financial Services, company is renamed as Geojit BNP Paribas Financial Services Ltd
The McKinsey 7S Framework

Ensuring that all parts of your organization work in harmony
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How do you go about analyzing how well your organization is positioned to achieve its intended objective? This is a question that has been asked for many years, and there are many different answers. Some approaches look at internal factors, others look at external ones, some combine these perspective, and others look for congruence between various aspects of the organization being studied. Ultimately, these issue comes down to which factors to study. The 7S model can be used in a wide variety of situations where an alignment perspective is useful, for example to help you: Improve the performance of a company. Examine the likely effects of future changes within a company Align departments and processes during a merger or acquisition Determine how best to implement a proposed strategy.
Management
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Mr. C. J. George Mr. Punnose George Mr. Satish Menon Mr. Binoy .V.Samuel Mr. A. Balakrishnan
Managing Director Director Chief Operating Officer Chief Financial Officer Chief Technology Officer
Mrs. Jaya Jacob Alexander Mr. K. Venkitesh Ms. Farzana Khan
Chief, Human Resources Head - Channel Sales and Distribution Head-Online Products, Services and Operations
Board of Directors
Mr. A. P. Kurian Mr. C. J. George Mr. Jiji Thomson Sheikh Sultan Bin Saud Al Qassemi Mr. P. C. Cyriac Mr. Mahesh Vyas Mr. Rakesh Jhunjhunwala Mr. Ramanathan Bupathy Mr. Punnoose George Non - Executive & Independent Chairman Managing Director & Chief Promoter Non - Executive & Independent Director Non - Executive & Independent Director Non - Executive & Independent Director Non - Executive & Independent Director Non - Executive Director Non - Executive & Independent Director Non - Executive Director
ORGANIZATION CHART
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Regional Head
Regional officer
System Engineer
Branch Manager
Branch back Officer
Dealer
Commodity Dealer
Casual Employee
Vision
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We will continually strive to raise our products and service standards by intelligent application of technology and processes.
Values and Beliefs
We understand and respect customer needs to consistently deliver total quality solutions through constant skills up gradation. We believe that our company culture helps to attract and retain best talent. We uphold uncompromising ethical standards and strive to maintain a distinctive identity in public mind shore through innovation and quality We are committed to achieve profitable progress consistently. We freely share our investment experience across all ages and strata of society to encourage wise investment for a better future.
PRODUCTS AND SERVICES
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1. Equity
2. Depository
3. Portfolio management services
4. Distribution
5. Futures and Options
6. Commodity
7. Services and distribution
8. Research
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THEORETICAL FRAME WORK
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An Overview of the Capital Market
INTRODUCTION
The deregulation and liberalization of the industry in India has been accompanied by change in financial sector. It is widely acknowledged that economic development of a country is directly related to the level of its industrial growth. The process of industrial growth essentially requires the development of capital market, which provides long-term finance to entrepreneurs. The capital market aims at mobilization & efficient allocation of resources to the desired investment outlets & thus, plays a vital role in the development of the national economy. The Indian capital market has been experiencing a process of structural transformation since the early eighties signifying the widening & deepening of the market by showing notable increases both in the number of participants as well as instruments.
DEFINITION & MEANING OF CAPITAL MARKET The dictionary of commerce defines capital market as a market for medium and long-term finance. Capital market is one of the sources for raising long-term finance by the corporate. Capital market is the medium through which the companies and investors interact. The companies will enter the capital market with shares and/or debenture issues, which are subscribed by the investors. The investors will evaluate the companys offerings and based on the credentials of the offer take decisions regarding investment. The primary purpose of capital market is to direct the flow of savings into long term investments.
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TYPES OF CAPITAL MARKET
On the basis of the status of the market, the capital markets in India is classified as a) Organized capital market and
b) Unorganized capital market
ORGANIZED CAPITAL MARKET
The constituents of the organized capital market are the Reserve Bank of India financial institutions like IFCI, LIC, IDBI, UTI commercial banks, stock markets etc.
In the organized capital market the demand for capital comes from corporate enterprises and government and semi-government institutions and supply comes from household savings, institutions investors like banks investments trusts, insurance companies, finance corporations, governments and international financing agencies.
UNORGANIZED CAPITAL MARKET
Unorganized capital market consists of indigenous bankers, money lenders, chit funds, traders etc.
A large part of the demand for funds in the unorganized capital market is for consumption purposes. In fact many purposes, for which funds are very difficult to get from the organized market, are financed by the unorganized sector. Unorganized capital market in India is characterized by the existence of multiplicity of interest rates, exorbitant rates of interest and lack of uniformity in their business dealings.
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On the basis of stage of development, capital market is classified into two types, viz., i) ii) Primary capital market Secondary capital market
PRIMARY CAPITAL MARKET OR NEW ISSUE MARKET
Primary capital market is market for new issues, where long term funds are raised by industrial, commercial enterprises, state government & central government from investors through the issue of shares, debentures & bonds.
SECONDARY CAPITAL MARKET OR STOCK EXCHANGE MARKET
Secondary market is markets for secondary sale of securities which have already passed through the new issue market are traded in this market. An active secondary market actually promotes the growth of the primary market & capital formation because investors in the primary market are assured of a continuous market & they can liquidate their investments.
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Derivatives
Derivatives defined A derivative is a product whose value is derived from the value of one or more underlying variables or assets in a contractual manner. The underlying asset can be equity, forex, commodity or any other asset.
Products, participants and functions

Derivative contracts are of different types. The most common ones are forwards, futures, options and swaps. Participants who trade in the derivatives market can be classified under the following three broad categories hedgers, speculators, and arbitragers.
1. Hedgers:
Hedgers face risk associated with the price of an asset. They use the
futures or options markets to reduce or eliminate this risk.
2. Speculators: Speculators are participants who wish to bet on future movements in the price of an asset. Futures and options contracts can give them leverage; that is, by putting in small amounts of money upfront, they can take large positions on the market. As a result of this leveraged speculative position, they increase the potential for large gains as well as large losses.
3. Arbitragers: Arbitragers work at making profits by taking advantage of discrepancy between prices of the same product across different markets. If, for example, they see the futures price of an asset getting out of line with the cash price, they would take offsetting positions in the two markets to lock in the profit.
Some commonly used derivatives

Some of the more popularly used derivative contracts.
Forwards: A forward contract is an agreement between two entities to buy or sell the underlying asset at a future date, at today's pre-agreed price.
Futures: A futures contract is an agreement between two parties to buy or sell the underlying asset at a future date at today's future price. Futures contracts differ from forward contracts in the sense that they are standardized and exchange traded.
Options: There are two types of options - calls and puts. Calls 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. Puts give the buyer the right, but not the obligation to sell a given quantity of the underlying asset at a given price on or before a given date.
Warrants: Options generally have lives of up to one year, the majority of options traded on options exchanges having a maximum maturity of nine months. Longer dated options are called warrants and are generally traded over-the-counter.
Baskets:
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Basket options are options on portfolios of underlying assets. The underlying asset is usually a weighted average of a basket of assets. Equity index options are a form of basket options.
Swaps: Swaps are private agreements between two parties to exchange cash flows in the future according to a prearranged formula. They can be regarded as portfolios of forward contracts. The two commonly used swaps are: o
Interest rate swaps: These entail swapping only the interest related cash flows between the parties in the same currency.
o Currency swaps: These entail swapping both principal and interest between the parties, with the cash flows in one direction being in a different currency than those in the opposite direction.
Swaptions: Swaptions are options to buy or sell a swap that will become operative at the expiry of the options. Thus a swaption is an option on a forward swap.
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Futures vs. Forwards

A futures contract is very similar to a forward contract, which is also a contract to trade on a future date. The main differences are, that:
futures are always traded on an exchange, whereas forwards always trade overthe-counter
futures are highly standardized, whereas each forward is unique the price at which the contract is finally settled is different:
o
futures are settled at the settlement price fixed on the last trading date of the contract (i.e. at the end)
forwards are settled at the forward price agreed on the trade date (i.e. at the start)
the credit risk of futures is much lower than that of forwards:

o
The profit or loss on a futures position is exchanged in cash every day. After this the credit exposure is again zero.
the profit or loss on a forward contract is only realized at the time of settlement, so the credit exposure can keep increasing
In case of physical delivery, the forward contract specifies whom to make the delivery to. The counter party on a futures contract is chosen randomly by the exchange.
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Evolution of the commodity market in India

Bombay Cotton Trade Association Ltd., set up in 1875, was the first organised futures market. Bombay Cotton Exchange Ltd. was established in 1893 following the widespread discontent amongst leading cotton mill owners and merchants over functioning of Bombay Cotton Trade Association. The Futures trading in oilseeds started in 1900 with the establishment of the Gujarati Vyapari Mandali, which carried on futures trading in groundnut, castor seed and cotton. Futures trading in wheat were existent at several places in Punjab and Uttar Pradesh. But the most notable futures exchange for wheat was Chamber Of Commerce at Hapur set up in 1913. Futures trading in bullion began in Mumbai in 1920. Calcutta Hessian Exchange Ltd. was established in 1919 for futures trading in rawjute and jute goods. But organised futures trading in raw jute began only in 1927 with the establishment of East Indian Jute Association Ltd. These two associations amalgamated in 1945 to form the East India Jute & Hessian Ltd. to conduct organised trading in both Raw Jute and Jute goods. Forward Contracts (Regulation) Act was enacted in 1952 and the Forwards Markets Commission (FMC) was established in 1953 under the Ministry of Consumer Affairs and Public Distribution. In due course, several other exchanges were created in the country to trade in diverse commodities.
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Commodities Traded In India

Commodities Bullion Gold, Gold HNI, Gold M, I-Gold, Silver, Silver HNI, Silver M Castor Oil, Castor Seeds,
Cottonseed, Crude Palm Oil, Groundnut Oil, Kapasia Khalli Oil and Oil Seeds (Cottonseed Oilcake), Mustard /Rapeseed Oil,
Mustard Seed (Sirsa), RBD Palmolein, Refined Soy Oil, Sesame Seed, Soymeal, Soy Seeds Spices Cardamom, Jeera, Pepper, Red Chilli Aluminium, Metals Copper, Nickel, Sponge Iron, Steel Flat, Steel Long (Bhavnagar), Steel Long (Gobindgarh), Tin, Zinc
Fibre
Cotton Long Staple ,Cotton Medium Staple,Cotton Short Staple, Kapas Chana, Masur, Tur, Urad, Yellow Peas, Basmati Rice, Maize, Rice, Sarbati Rice, Brent Crude Oil, Crude Oil,Furnace Oil Cashew Kernel, Rubber High Density Polyethylene (HDPE), Polypropylene (PP), PVC Guar Seed, Guargum, Gurchaku, Mentha Oil, Potato, Sugar M-30, Sugar S-30, Wheat
Pulses Cereal Energy Plantation Petro-Chemical Others
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COMMODITY FUTURES
Commodity futures are the part of the derivatives. India has a long history of commodity futures trading, extending over 125 years. As the country embarked on economic liberalization policies and signed the GATT agreement in the early nineties, the government realized the need for futures trading to strengthen the competitiveness of Indian agriculture and the commodity trade and industry.
Statutory framework for regulating commodity futures exists in India Commodity futures contracts and the commodity exchanges organizing trading in such contracts are regulated by the Government of India under the Forward Contracts (Regulation) Act, 1952 (FCRA or the Act), and the Rules framed there under. The nodal agency for such regulation is the Forward Markets Commission (FMC), situated at Mumbai, which functions under the aegis of the Ministry of Consumer Affairs, Food & Public Distribution of the Central Government.
"Commodity" Commodity includes all kinds of goods. FCRA defines "goods" as "every kind of movable property other than actionable claims, money and securities". Futures' trading is organized in such goods or commodities as are permitted by the Central Government. At present, all goods and products of agricultural (including plantation), mineral and fossil origin are allowed for futures trading under the auspices of the commodity exchanges recognized under the FCRA. The national commodity exchanges have been recognized by the Central Government for organizing trading in all permissible commodities which include precious (gold & silver) and nonferrous metals; cereals and pulses; ginned and unginned cotton; oilseeds, oils and oilcakes; raw jute and jute goods; sugar and gur; potatoes and onions; coffee and tea; rubber and spices, etc.
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"Commodity Exchange" A commodity exchange is an association, or a company or any other body corporate organizing futures trading in commodities.
Meaning of "Futures Contract"
A futures contract is an agreement between two parties to buy or sell a specified quantity and quality of asset at a certain time in future at a certain price agreed at the time of entering into the contract on the futures exchange.
A futures contract is a type of "forward contract". FCRA defines forward contract as "a contract for the delivery of goods and which not a ready delivery contract is". Under the Act, a ready delivery contract is one, which provides for the delivery of goods and the payment of price there for, either immediately or within such period not exceeding 11 days after the date of the contract, subject to such conditions as may be prescribed by the Central Government. A ready delivery contract is required by law to be fulfilled by giving and taking the physical delivery of goods. In market parlance, the ready delivery contracts are commonly known as "spot" or "cash" contracts.
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Objectives of commodity futures are as follows.

Hedging - price risk management by risk mitigation
Speculation - take advantage of favorable price movements
Leverage - pay low margin to enjoy large exposure
Liquidity - ease of entry and exit of market
Price discovery - for making farming and business decisions
Price stabilization along with balancing demand and supply position
Facilitates integrated price structure
Flexibility, certainty and transparency in purchasing commodities facilitate bank Financing.
Facilitates 'informed' lending to the banks.
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Benefits of Commodity Future Market

It benefits to
Farmers
Efficient Price Discovery/Forecast made by the exchange will enable farmers decide cropping pattern and investment on inputs.
Price Stability resulting from equilibrium in supply and demand for a commodity would be possible through exchanges.
Get an extensive market opened for them. Get opportunity to trade, knowing the national and international trends and standards.
Can sell the commodity to the customer without any agents. Can decide the market even before harvest. Farmers can trade by asking the help of the experts in trading organizations even if they are computer illiterate.
Traders

Can trade by spending only the margin amount. Can sell the commodities that he buys from the ready market and can rescue himself from the loss happening from price fall..
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Consumer, Industrialist & Exporters

Can be sure that the commodity is available when they require it. Can calculate the price since it is predetermined and can arrange everything according to that.
Can buy goods without agents. Can buy them even while sitting in their office. Can be assured the quality of the good.
Commodity futures trading cycle
NCDEX trades commodity futures contracts having one-month, two-month and three-month expiry cycles. All contracts expire on the 20th of the expiry month. Thus a January expiration contract would expire on the 20th of January and a February expiry contract would cease trading on the 20th of February. If the 20th of the expiry month is a trading holiday, the contracts shall expire on the previous trading day. New contracts will be introduced on the trading day following the expiry of the near month contract. Figure shows the contract cycle for futures contracts on NCDEX.
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Benefits of trading in commodity futures

Futures trading in commodities results in transparent and fair price discovery on account of large-scale participation and reflects views and expectations of wider section of people related to those commodities. Producers, traders and processors, exporters/importers get an online platform through different exchanges for price risk management. It provides a platform for producers to hedge their positions according to their view of the prices. The brokerage is expected to be 0.25% of the transaction value.
Indian Commodity Futures Market
Introduction:
Global commodity market volumes far exceed that of markets. In India too, this market is expected to generate volumes exceeding todays equity and derivative volumes. It is being estimated that international trading in commodity futures market is expected to be around five to ten times of physical commodity markets in the next few years. In India, one can expect commodity futures market to be at least five times (at around Rs. 55.000 billion) that of the physical commodity markets (at around Rs 11,000 billion), at least over the next five years. Retail, corporate or institutional investors can now manage their commodity price-risk through participation in this market.
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Regulatory Frame work
Commodity Futures Trading functions under three tier regulatory framework.
1. Commodity Exchanges: 2. Forward Markets Commission (FMC) 3. Department of Consumer Affairs, Government of India
Commodity Exchanges: The commodity Exchange is responsible for the orderly conducting of trade as per the rules and bylaws of FMC.
Forward Markets Commission (FMC): The market regulator is responsible for recommending approvals of exchanges, approves bylaws of exchanges and engages in surveillance for orderly conduction of Future Trading.
Department of Consumer Affairs, Government of India: The Ministry of Consumer Affairs, Food and Public Distribution approves the Exchanges, approves a Commodity for Futures Trading and formulates policies and rules.
The National level multi-commodity exchanges are:

1. National Multi Commodity Exchange of India Ltd, Ahmedabad (NMCE) The First De-Merged Electronic multi commodity exchange of India Granted the National status on a permanent basis by the government of India and operational since 26th November 2002.This is presently working on-line and trading in many active commodities like castor seed/oil, rapeseed and mustard seed/oil, aluminum, soybean/oil, pepper, gold, silver etc. www.nmce.com. B.L.D.E.AS A.S.PATIL COLLEGE OF COMMERCE BIJPAUR 39
2. National Board of Trade, Indore (N-BOT)--www.nbotind.org. This is also presently working but not completely on-line, screen-based. In this exchange maximum trades are carried out in soy oil. It is incorporated on July 30, 1999 to offer integrated, state-of-the-art commodity futures exchange
3. National Commodity and Derivative Exchange, Mumbai (NCDEX)-- The exchange is being promoted by ICICI Bank, National Stock Exchange (NSE), Life Insurance Corporation and NABARD. It is more or less on the lines of the NSE of the capital market. 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. www.ncdex.com
4. Multi Commodity Exchange of India Ltd, Mumbai(MCX) www.mcxindia.com The exchange is promoted mainly by professionals and supported by Financial Technology (FT). The exchange has started operations from November 10 2003 and has offered gold, silver and castor seed in the first phase of trading facility. The key share holders are State Bank of India (Indias largest commercial bank) & associates, Fidelity International, National Stock Exchange of India Ltd. (NSE), National Bank for Agriculture and Rural Development (NABARD), HDFC Bank, SBI Life Insurance Co. Ltd., Union Bank of India, Canara Bank, Bank of India, Bank of Baroda and Corporation Bank.
40
The general risks associated with commodity futures

The different types of risks associated with commodity futures are as follows:
1. Credit risks These are the usual risks associated with counter party default and which must be assessed as part of any financial transaction. 2. Market risks These are associated with all market variables that may affect the value of the contract, for e.g., a change in the price of the underlying instrument 3. Operational risks These are the risks associated with the general course of business operations and include: a. Settlements risks, b. Legal risks, and c. Deficiencies in information, monitoring and control systems, which result in fraud, human error, system failures, management failures etc. Settlement risk arises as a result of the timing differences between when an institution either pays
out funds or deliverable assets before receiving a assets or payments from a counter party. Legal risk arises when a contract is not legally enforceable, reason being Inadequate documentation The counter party lacks the required authority to enter into the transaction The underlying transaction is not permissible Bankruptcy or insolvency of the counter party changes the contract conditions
41
4. Strategic risks These risks arise from activities such as: 1. Entrepreneurial behavior of traders in financial institutions 2. Misreading client requests 3. Costs getting out of control 4. Trading with inappropriate counter parties.
5. Environmental Risk This risk mainly on the agricultural commodities, which are dependent on the climatic conditions, Unfavorable climatic conditions like flood etc., leads to loss of the production.
6. Political Risk: Due to the combination of government actions, ineffective legal systems, war and revolution affect the prices of the commodities.
42
Pricing commodity futures

Commodity futures began trading on the NCDEX from the 14th December 2003. The market is still in its nascent phase; however the volumes and open interest on the various contracts trading in this market have been steadily growing.
The process of arriving at a figure at which a person buys and another person sells a futures contract for a specific expiration date is called price discovery. In an active futures market, the process of price discovery continues from the market's opening until its close. The prices are freely and competitively derived. Future prices are therefore considered to be superior to the administered prices or the prices that are determined privately. Further, the low transaction costs and frequent trading encourages wide participation in futures markets lessening the opportunity for control by a few buyers and sellers.
In an active futures markets the free flow of information is vital. Futures exchanges act as a focal point for the collection and dissemination of statistics on supplies, transportation, storage, purchases, exports, imports, currency values, interest rates and other pertinent information. Any significant change in this data is immediately reflected in the trading pits as traders digest the new information and adjust their bids and offers accordingly. As a result of this free flow of information, the market determines the best estimate of today and tomorrow's prices and it is considered to be the accurate reflection of the supply and demand for the underlying commodity. Price discovery facilitates this free flow of information, which is vital to the effective functioning of futures market. In this chapter we try to understand the pricing of commodity futures contracts and look at how the futures price is related to the spot price of the underlying asset. We study the cost-of-carry model to understand the dynamics of pricing that constitute the estimation of fair value of futures.
43
HEDGING:
Hedging is a mechanism to reduce price risk inherent in open positions. Derivatives are widely used hedging. A hedge can help lock in existing profits. Its purpose is to reduce the volatility of a portfolio, by reducing the risk.
Hedging does not mean maximization of return. It only means reduction in variation of return. It is quite possible that the return is higher in the absence of the hedge, but so also is the possibility of much lower return.
Basic principle of hedging:

When an individual or a company decides to use the futures markets to hedge a risk, the objective is to take a position that neutralizes the risk as much as possible.
Kinds of Hedging
There are basically two kinds of hedges that can be taken.
Short Hedge
Long Hedge
Short Hedge
A short hedge is a hedge that requires a short position in futures contracts. A short hedge is appropriate when the hedger already owns the asset, or is likely to own the asset and expects to sell it at some time in the future.
For example:
A short hedge could be used by a cotton farmer who expects the cotton crop to be ready for sale in the next two months.
Long Hedge
44
Hedges that involve taking a long position in a futures contract are known as long hedges. A long hedge is appropriate when a company knows it will have to purchase a certain asset in the future and wants to lock in a price now.
For Example:
Suppose that it is now January 15. A firm involved in industrial fabrication knows that it will require 300 kgs of silver on April 15 to meet a certain contract. The spot price of silver is Rs.1680.
Advantages of hedging
Besides the basic advantage of risk management, hedging also has other advantages:
Hedging stretches the marketing period. For example, a livestock feeder does not have to wait until his cattle are ready to market before he can sell them. The futures market permits him to sell futures contracts to establish the approximate sale price at any time between the time he buys his calves for feeding and the time the fed cattle are ready to market, some four to six months later. He can take advantage of good prices even though the cattle are not ready for market. Hedging protects inventory values. For example, a merchandiser with a large, unsold inventory can sell futures contracts that will protect the value of the inventory, even if the price of the commodity drops
Limitations of Hedging
45
The asset whose price is to be hedged may not be exactly the same as the asset underlying the futures contract.
The hedger may be uncertain as to the exact date when the asset will be bought or sold. Often the hedge may require the futures contract to be closed out well before its expiration date. This could result in an imperfect hedge.
SWOT Analysis
SWOT Analysis identifies factors that may affect desired outcomes of the organization. The SWOT model is based on identifying the organizational internal strengths and
46
weakness and external threats and opportunities and consequently identifying the companys distinctive competence and success factors. STRENGTH Geojit takes pride in its employees and their exceptional qualities which form the core strength of the company It is well established financial firm which has its branches all over India and overseas. It is the first one to start the online trading fund transfer. Global banking major BNP Paribas joined the companys other major shareholders Mr. C. J. George, KSIDC (Kerala State Industrial Development Corporation). Pioneer in market in following field which are the strengths. 1st to launch integrated internet trading system for cash and derivative segments in the year 2002. 1st Indian stock broking company to commence domestic retail broking operations in any foregn country. 1st in the industry to have a global player offeringits name thereby creating Geojit BNP Paribas. 1st to launch exclusive branches for women in 2005.
WEAKNESS There are not much promotions programs done for the awareness of the general public of the Geojit firm. Maintenance standards are not to the level of the world-class organization and latest systems of automation. Old mind-set of managerial practices based on rigidities of rule. OPPORTUNITIES The market covered only 16% so there is lot of opportunities for the growth and the company can get more and more clients. The percentage of retail savings that is channeled into equities and equity related products in the country are still much lower than in developed countries. Fast economic growth generating higher savings and better corporate performance is likely to provide growth opportunites for the business of the company. The close association with the large and globally reputed partner like BNP Paribas would assist in exploring avenues for growth.
THREATS
47
Capital market activities in which most of activities depend on is also influenced by global events and hence there is an amount of uncertainty in the near term outlook of the market. The economic crisis in some countries in the Europe has added some volatility globally and Indian Stock market has not yet decoupled from such global trends. The recent increase in inflation rate in india is a cause of concern as it can affect corporate profitablitiy.
ANALYSIS
AND INTERPRETATION
I have taken 3 products to study and to analyze. 1. Gold 2. Silver 3. Wheat
GRAPHICAL REPRESENTATION
49
Q.NO 1 : Which among these investment criteria you usually prefer? Bank Deposit 22 Real Estate 8 25 Stocks Life Insurance 10 18 Gold Mutual Funds 6 2 Bonds Derivates Others Market 4 5
25
Bank Deposit
20 15 10 5 0 No.of Responses
Real Estat Stocks Life incurance Gold Mutual Funds Bonds Derivates Market Others
Interpretation:
According to the survey we came to know that 22 respondents are invested in Bank deposits,8 are in Real eastae,25 in stocks,10 in life insurance,18 in Gold,6 in Mutual funds,2 in Bonds,4 in Derivatives Market,and5 others. so most of the respondents are invested in Bank deposits ,Stok and Gold.
50
Q.No.2 : Are you aware of commodity Market?
Yes 37%
No 63%
Awarness of Commodity Market
80 60 No of Responden 40 ts 20 0 Opinoins
Interpretation :
The awareness level of respondents towards commodity market is 37% and 63 % of the respondents are not aware of the commodity market. So majority of he respondents are not aware of this commodity market. So Awareness has to be made.
Yes No
51
Q.No3 : Are you invested in Commodity market?
yes 35%
No 65%
Investment in commodity market
80 60 NO of responses 40 20 0 opnions
Yes NO
Interpretation:
By conducting this survey we found that 35% of respondents are invested in commodity market. And 65 % of the respondents are not invested in commodities. So here the majority is lies with the respondents who are not invested in commodities.
52
Q.No4 : If yes, since how long are you trading with commodities?
<1 year
1-3 years 20%
>3 years 5%
35%
1.2 1 0.8 0.6 0.4 0.2 0 Series1 Series2 Series3
Interpretation:
From this we can know that 35% of the respondents are invested less then one year., and 20% of respondents are invested in 1to 3 years and 5% of respondents invested in more then three years. so here majority lies with the respondents who have invested in less then one year.
53
Q .No 5 : If no, would you like to have knowledge of commodities market? Yes 60% No 40%
Knowledge of Commodity Market
51
No of responses
50
Yes
49 48
opnions
No
Interpretation:
From this we find that 60% of the respondents they would like to have the knowledge of commodity market and 40% respondents are not interested to know about this commodity market. Hence we should give them the knowledge of commodity market in best manner.
54
Q.No6: Which among these commodities are you interested to trade with? How do you rate them?
Gold Yes 73% No 27%
Gold
1.5 No of 1 responses
Series1
0.5
0 opinoins
Interpretation:
Among the different commodities 73% of the respondents are interested to trade in Gold, and 27% of the respondents are not interested to trade in gold. Here the majority of the respondents are interested to trade in gold .
Silver
55
Yes 42%
No 58%
Silver
1.5
1 No of responses 0.5
0 opinions
Series1 Series2
Interpretation:
Here 42% of the respondents are interested to trade in Silver, and 58% of respondents are not interested to trade in this silver. Hence most of the respondents does not interested to trade in silver.
Crude Oil
56
Yes 75%
No 25%
Crude oil
1.5 No of Response s 1 0.5 0 opinions

Series1 Series2
Interpretation
From this we came to know that 75% of the respondents are interested to trade in Crude oil ,and 25%of the respondents are not interested to trade in this commodity. Hence majority lies with the respondents who are interested to invest in this crude oil.
Sugar
57
Yes 69%
No 31%
Sugar
1.5 1 No of Response 0.5 s 0 Opinion

Series1 Series2 Series3 Series4
Interpretation:
Here 69% of the respondents are interested to invest in sugar ,and 31% of respondents are not interested to invest in this crude oil. So majority of the respondents are interested to invest in this crude oil.
Wheat
58
Yes 39%
No 61%
Wheat
1.5 1 No of responses 0.5 0 Opinions

Series1 Series2 Series3 Series4
Interpretation:
Here39% of the respondents are interested to trade in this wheat but 61% of respondents are not interested to trade in this commodity .so majority here is that most of the respondents are not interested to trade in wheat.
Gold (Ratings)
59
Items Ratings
Gold 31%
Silver 32%
Crude oil 14%
Sugar 11%
Wheat 12%
Gold
1.5 1 Opinions 0.5 0 Series1 Ratings 1 2 3 4 5
Interpretation:
From this survey we can know that 31% of respondents have given 1 preference to gold .32% are given 2 preference ,14%respondents have given3rd preference,11%are given 4Th preference 12% have given 5ht preference. so majority here is 32% of respondents have given 2nd preference.
Silver(Ratings)
60
Items Ratings
Gold 28%
Silver 32%
Crude oil 14%
Sugar 14%
Wheat 12%
Silver
1.5 1 No of Response s 0.5 0 Series1 Ratings
Interpretation:
From this survey we can know that 28% of respondents have given 1 preference to Silver .32% are given 2 preference ,14%respondents have given3rd preference,14%are given 4Th preference 12% have given 5ht preference. So majority here is 32% of respondents have given 2nd preference.
Crude oil (Ratings)
61
Items Ratings
Gold 20%
Silver 14%
Crude oil 35%
Sugar 17%
Wheat 14%
Crude oli
1.2 1 0.8 No of Response 0.6 s 0.4 0.2 0 Series1 Ratings 1 2 3 4 5
Interpretation:
From this survey we can know that 20% of respondents have given 1 preference to Crude oil .14% are given 2 preference, 35%respondents have given3rd reference,17%are given 4Th preference 14% have given 5ht preference. so majority here is 35% of respondents have given 3rd preference to the crude oil. .
Sugar(Ratings)
62
Items Ratings
Gold 27%
Silver 14%
Crude oil 15%
Sugar 34%
Wheat 10%
Sugar
1.5 1 No of Response 0.5 s 0 Series1 Ratings 1 2 3 4 5
Interpretation:
From this survey we can know that 27% of respondents have given 1 preference to Sugar.14% are given 2 preference ,15%respondents have given3rd preference,34%are given 4Th preference 10% have given 5ht preference. so majority here is 34% of respondents have given 4th preference to the sugar .
Wheat(Ratings)
63
Items Ratings
Gold 13%
Silver 14%
Crude oil 24%
Sugar 13%
Wheat 35%
Wheat
1.2 1 No of 0.8 Response 0.6 s 0.4 0.2 0 Series1 Ratings 1 2 3 4 5
Interpretation:
From this survey we can know that 13% of respondents have given 1 preference to Wheat.15% are given 2 preference ,24%respondents have given3rd preference,13%are given 4Th preference 35% have given 5ht preference. so majority here is 34% of respondents have given 5th preference to the wheat..
Q.No7: Which Factors do you normally see while trading in commodity market?
64
Price 30%
Season 5%
Market Rate 7%
Risk 20%
Returns 27%
Liquidity 5%
Safety 6%
Factors for Trading in commodity market

1.2 No of Responses 1
Series1 Series2 Series3 Series4 Series5
0.8
0.6 0.4 0.2 0 Factors
Interpretation:
From this survey we found that while trading in commodity market 30%of the respondents will see this price factor while investing in this. And 5% will see season ,7&% will see market rate and 20% will see risk ,27%will see the returns 5% will see liquidity and remaining 6% will see safety while investing in this commodity market.
Q.No8: Which facilities do you expect from service provider of a commodity trading? Up-To Date Information
65
1 18%
2 36%
3 18%
4 17%
5 11%
Up-To Date Information
1.2 1 0.8 No of Response 0.6 s 0.4 0.2 0 Series1 Ratings 1 2 3 4 5
Interpretation:
Here 18% of the respondents expect up-to date information from the service provider, and 36% of respondents will expect market knowledge ,18% will expect less brokerege ,17% will see the comforts, 11% will expect Good service.so majority of the respondents will expect Market knowledge from the service provider of the commodity.
Market Knowledge
66
1 46%
2 16%
3 13%
4 15%
5 10%
Market knowledge
Interpretation:
Here 46% of the respondents expect up-to date information from the service provider, and 16% of respondents will expect market knowledge ,13% will expect less brokerage ,15% will see the comforts, 10% will expect Good service. so majority of the respondents will expect up-to date information from the service provider of the commodity.
Less Brokerage
67
1 70%
2 3%
3 6%
LessBrokerage
4 14%
5 7%
Interpretation:
Here 70% of the respondents expect up-to date information from the service provider, and 3% of respondents will expect market knowledge ,6% will expect less brokerage ,14% will see the comforts, 7% will expect Good service.so majority of the respondents will expect Up-to date information from the service provider of the commodity.
Comforts
68
15%
11%
19%
24%
31%
Comforts
1.5 No of 1 Response s 0.5 0 Series1 Ratings
Interpretation:
Here 15% of the respondents expect up-to date information from the service provider, and11% of respondents will expect market knowledge ,19% will expect less brokerage ,24% will see the comforts, 31% will expect Good service.so majority of the respondents will expect Good Service.from the service provider of the commodity.
Good Service
69
16%
26%
13%
16%
19%
Good Service
1.5 No of 1 Responses 0.5 0 Series1 Ratings 1 2 3 4 5
Interpretation:
Here 16% of the respondents expect up-to date information from the service provider, and 26% of respondents will expect market knowledge, 13% will expect less brokerage, 16% will see the comforts, 29% will expect Good service. So majority of the respondents will expect Good Service from the service provider of the commodity.
70
FINDING & SUGGESTIONS
Findings
Commodity Futures have a bright future in coming days.
71
Price of a commodity is dependent on its demand and supply of that commodity in the market.
As the commodity future market is new and emerging, many investors and farmers are not fully aware of this market. As this market, helps them to trade transparently without middlemen or agents to earn the good profits.
Consumption products are perishable in nature, so investing in these commodities are risky, as compared to investment commodities. And also there is a normal loss may arise which should be bared by the trader in case he wants delivery.
Here 63% of the respondents are not aware of the commodity market. There is no growth in commodity market, and it is in the initial stage. 65% of the respondents are not invested in commodity market. 60% of respondents are interested to invest in the commodity market. 73% of the respondents are interested to invest in the gold,42%in silver,75%in crude oil,69%in sugar,39%in wheat.
Most important factor the respondents will see while investing is Price 30% and 27% Returns.
The investor has to invest only 5% of margin and he can hold the commodity. The commodity market prices depend upon the demand & supply as well as on global market.
The investor should know the market idea, within a range he has to play. In spot market for commodity, the investors have to understand the price movement, and in future market it is difficult to play without knowing the spot market.
Suggestions:
Creating the awareness among the people and farmers about commodity market through:
72
Making presentations in the villages to the farmers by video and explaining them the uses and benefits of the commodity market
Educate them on how to trade the commodity futures, i.e. getting in to the contract before harvesting only, to get the minimum guarantees.
The Company should inform the benefits of Commodity trading to the present investors who are investing in cash market. Agents should be given information regarding changes in the price margins of different commodities, because they are not aware of the market. Company should approach people who are already into the business of gold, silver , sugar ,crude oil etc.
Through personal contact we can create awareness.
Conclusion:
73
The commodity futures market is new and emerging market. The awareness of the market is very less among the farmers who can use this trade to sell their products without the middlemen or agents it also helps the actual buyers too. The study of price volatility helps the traders to trade effectively even it have some draw-backs they can be avoided with careful study and observation of current happenings in market, political issues, change in demand and supply, production and consumption pattern etc,. Here trader also can transfer his risk to some other who can handle it or can appetite the risk through hedging technique. The cash market also influences the commodity future market.
ANNEXURE
BIBLIOGRAPHY
Geodata Magazines, and News paper Reports Brouchers
Web Sites: www.nseindia.com www.geojit.com www.google.com www.commodityindia.com
Questionnaire
75
Dear Sir /Madam I am a student of MBA from A. S. Patil College of Commerce, MBA Programme,
Bijapur. I am doing survey on Awareness level of Commodity Market in BIJAPUR City. So please spare few minutes of your time to fill up this form. This information is used only for academic purpose. Name:__________________________________________________ Address:________________________________________________ Contact No:(Mobile/LL) __________________________________ E-Mail:_________________________________________________ Age Occupation: ____________________________________________ 1) Which among these investment criteria you usually prefer? Bank Deposits Real Estate Stocks Life Insurance Gold Mutual Funds Bonds Derivatives market
Others if Specify ________________
76
2) Are you aware of Commodity Market? Yes No
3) Are you invested in Commodity market? Yes No
4) If yes, since how long are you trade with Commodities? <1 year 1-3 years > 3 years
5) If no, would you like to have knowledge of Commodities market? Yes No
6) Which among these Commodities are you interested to trade with? How do you rate Items Yes/No Ratings them? [Rate 1 for most preferred & 5 for least preferred]. Gold Silver Crude Oil Sugar Wheat
7) Which factor do you normally see while trading in commodity market? Season Price Market Rate Risk Returns Liquidity Safety
77
8) Which facilities do you expect from service provider of a commodity trading? (Give the ratings,1-5,1for high,5for low).
Up-To Date Information Market Knowledge Less Brokerage Comforts Good service
9) Your valuable suggestions are welcomed. ________________________________________________
________________________________________________
Thank you
78

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BLDEAs Associations A.S.

Patil College of Commerce, MBA Programme, Bijapur

Awareness Level of Commodity Market

By RAVIKANT. JATAKAR MBA10013 UNDER THE GUIDANCE OF

Mr. Prasanna Ajarekar

B.L.D.E.AS A.S.PATIL COLLEGE OF COMMERCE BIJPAUR

BLDEAs Associations A. S. Patil College of Commerce, MBA Programme, Bijapur

GUIDE Prof. P. K. Gupta

DIRECTOR Dr. Uttam Kinangi

B.L.D.E.AS A.S.PATIL COLLEGE OF COMMERCE BIJPAUR

B.L.D.E.AS A.S.PATIL COLLEGE OF COMMERCE BIJPAUR

Place: Bijapur Date: (RAVIKANT. JATAKAR )

B.L.D.E.AS A.S.PATIL COLLEGE OF COMMERCE BIJPAUR

Part II: Company Profile

Part III: Theoretical Framework

Part IV: Analysis and Interpretation Part V: Findings & Suggestions

Part VI: Annexure

B.L.D.E.AS A.S.PATIL COLLEGE OF COMMERCE BIJPAUR

B.L.D.E.AS A.S.PATIL COLLEGE OF COMMERCE BIJPAUR

B.L.D.E.AS A.S.PATIL COLLEGE OF COMMERCE BIJPAUR

Awareness level of Commodity Market

Objective of the project are:

Awareness level of commodity Market

B.L.D.E.AS A.S.PATIL COLLEGE OF COMMERCE BIJPAUR

B.L.D.E.AS A.S.PATIL COLLEGE OF COMMERCE BIJPAUR

B.L.D.E.AS A.S.PATIL COLLEGE OF COMMERCE BIJPAUR

Overseas Joint Ventures

B.L.D.E.AS A.S.PATIL COLLEGE OF COMMERCE BIJPAUR

1986 Geojit becomes a member of the Cochin Stock Exchange.

B.L.D.E.AS A.S.PATIL COLLEGE OF COMMERCE BIJPAUR

B.L.D.E.AS A.S.PATIL COLLEGE OF COMMERCE BIJPAUR

2006 Geojit re launches Internet trading on Reuters TIB Mercury Platform.

B.L.D.E.AS A.S.PATIL COLLEGE OF COMMERCE BIJPAUR

The McKinsey 7S Framework

B.L.D.E.AS A.S.PATIL COLLEGE OF COMMERCE BIJPAUR

B.L.D.E.AS A.S.PATIL COLLEGE OF COMMERCE BIJPAUR

Mrs. Jaya Jacob Alexander Mr. K. Venkitesh Ms. Farzana Khan

B.L.D.E.AS A.S.PATIL COLLEGE OF COMMERCE BIJPAUR

Branch back Officer

B.L.D.E.AS A.S.PATIL COLLEGE OF COMMERCE BIJPAUR

Values and Beliefs

PRODUCTS AND SERVICES

B.L.D.E.AS A.S.PATIL COLLEGE OF COMMERCE BIJPAUR

3. Portfolio management services

5. Futures and Options

7. Services and distribution

B.L.D.E.AS A.S.PATIL COLLEGE OF COMMERCE BIJPAUR

THEORETICAL FRAME WORK

B.L.D.E.AS A.S.PATIL COLLEGE OF COMMERCE BIJPAUR

An Overview of the Capital Market

B.L.D.E.AS A.S.PATIL COLLEGE OF COMMERCE BIJPAUR

TYPES OF CAPITAL MARKET

b) Unorganized capital market

ORGANIZED CAPITAL MARKET

UNORGANIZED CAPITAL MARKET

B.L.D.E.AS A.S.PATIL COLLEGE OF COMMERCE BIJPAUR

PRIMARY CAPITAL MARKET OR NEW ISSUE MARKET

SECONDARY CAPITAL MARKET OR STOCK EXCHANGE MARKET

B.L.D.E.AS A.S.PATIL COLLEGE OF COMMERCE BIJPAUR

Products, participants and functions

futures or options markets to reduce or eliminate this risk.

Some commonly used derivatives

Some of the more popularly used derivative contracts.