CHAPTER-2 REVIEW OF LITERATURE

REVIEW OF LITERATURE

Equity Analysis
Decisions like whether you should buy or sell when trading in the share market is a difficult task to do. It requires split-hair analysis of the market. To do so one also needs to have excellent understanding of the market. Equity analysis forms an integral part of the share trading experience. Equity analysis decides the stance one would take in the share trading industry. Finding out the highs and lows in the market and analyzing the equity is of utmost importance before making any sort of investment. Technical analysis, fundamental analysis and other form a part of the equity analysis. www.bestindiansites.com has found you five best sites for your equity analysis. Various Websites to analyse the stock markets: www.sensex.in www.indiabulls.com www.equitymaster.com www.nseindia.com www.chartalert.net Capital Market Instruments The capital markets are relatively for long term (greater than one year maturity) financial instruments e.g bonds and stocks). It is the largest source of funds with long and indefinite maturity for companies are there by enhances the capital formation in the country. It offers investment avenues to investors. The capital market instruments are the vehicles between the companies and the investors. The financial instruments that have short or medium term maturity periods are dealt in the money market whereas the financial instruments that have long maturity periods are dealt in the capital market. The different types of financial instruments that are traded in the capital markets are equity instruments, credit market instruments, insurance instruments, foreign exchange

instruments, hybrid instruments and derivative instrument Stock market is the capital and SEBI is the driver. These instruments are of two types Primary market Secondary market

A part from derivative instruments, the following is the major mediums of approaching capital markets: Equity shares Preference shares Debentures/ bonds American Depository Receipts (ADR) Global Depository Receipts (GDR) Derivatives Employee stock option plan.

DEMATERIALISATION

Indian capital market has been witnessing rapid growth in the recent past, which has been indicated by the key factor on the capital markets. However, this growth has not matched with supporting infrastructure to handle the growing volume of paper that has flooded the market. So there emerged the need for a better system to ensure that the supporting infrastructure available is on par with such market growth. And also the foreign investors seeking to invest in India also were apprehensive about the reliability of the post trade settlement mechanism used in India. The biggest deterrent or bottleneck in Indian capital market is largely manual and paper based settlement system which is obsolete for a rapidly growing market

since 1992, decade old trading system in India stock exchanges have been under constant review.

The main deficiencies have been identified in two broad areas: 1. The clearing and settlement system in stock exchange where by delivery of shares by seller and payment by the purchaser is made. 2. Procedure for transfer of shares in the name of the purchaser current procedure result in excessive paper work, in clearing and settlement, work duplication, bad delivery, non-transparency in costs and rices at which customers orders are executed have prompted setting up of depositories. CONCEPT OF DEMATERILISATION: Dematerialization is a process by which physical shares of investors are converted to an equivalent number of securities in electronic form and are credited in the investors account with his depository participated. Dematerialization trading is now compulsory for all investor. Beginning of first week of January 1999, investor can trade in specific scripts in the dematerializations form.They can provide and receive delivery only in a dematerializations form and share certificates will not be changed for these scripts. A depository is an organization where securities of shareholder through depository participants (DPs). The system is comparable to that in a bank. If an investor wants services offered by a depository, he would have to open an account with it through a DP-similar to opening an account with any other branches of the bank in order to avail of its services. Dematerialization is a process by which physical certificates of an investor are taken back by the company/ registrar and actually destroyed and an equivalent number of securities are credited in the depository account of that investor. A depository participant is investors agent in this system. He maintains investors securities account and intimated the status of holdings from time to the investor.

PROCESS OF DEMATERIALIZATION: In order to dematerialize his certificates an investor will have to first open an account with a depository participant (DP)and then dematerialization of his certificates by filling up DEMATERIALIZATION REQUEST FORM (DRF) which will be available with any DP. The ISIN name and number should be mentioned. This is to ensure that the security mentioned in the demat request form is same as the one the client intended to dematerialize.

STEPS: An investor has to submit the request from long with the share certificate, which are to be dematerialized to depository participant, the depository participant gives the demat order to NSDL through the system. The depository participant submit the share certificates, DRF, DRN, the issuer/RTA. NSDL sends the demat request to the issuer/RTA.

The issuer/RTA sends confirmation / rejection statement after checking the validity. NSDL in turn sends the status intimation to the DP. The issuer /RTA send the objection memo to DP. DP gives the statement of holding to the client.

This takes about 15 days from the date of request. Electronic holdings can be converted back in to certificates, if so desired, in a similar fashion as that for dematerializations.

TRADING, CLEARING AND SETTLEMENT OF DEMATERILISED SECURITIES. 1. TRADING: Trading of dematerialized securities is currently available at national stock exchange (NSE), the Mumbai stock exchange (BSE) and Calcutta stock exchange (CSE). At NSE, dematerialization securities are traded two separate segments called AE segment and: BE segment which are in addition to the segment for trading in securities in the physical form called EQ segment.In case of AE segment, dematerialized securities are traded only in the market lot, where as in BE segment these can be traded in multiples of one share. At BSE and CSE, dematerialized are traded in a separate segment called Demat segment and physical securities are traded in unified segment.For trading in physical securities, the sub-brokers collect the orders from their client and place these order with the main brokers for execution in the market. The main broker enters the details of each trade against each sub-broker in a separate kept for each sub-broker. After execution of the trade, the main broker issues the contract note in the name of sub-broker who in turn issues separate purchases /sale note to his clients. There are only few cases in which the main broker issues the contract note in the name of the clients directly.Even in the case of dematerialized securities the same system can be followed. However in this case since the fear of bad delivery is less, the brokers directly issue the contract note in the name of clients, who is in edition t, facilitate the cost effective settlement with a clean audit trail.Trading in dematerialized securities is very similar to trading in physical securities except that physical segment follows account period settlements and demat segment follow rolling settlement. In rolling settlement, all trades executed on a particular day will be settled on the following 3rd working day. This means trades executed on Monday will be settled on thursaday.

2. TRADES: All the traders executed at the exchanges are settled by the clearing members (CM), as in the case of securities in the physical form. To settle traders in demat segment each CM should open one clearing a/c with any of the DP. The procedures for opening clearing accounts are: Approach a DP. Fill up an account opening form. Sign on an agreement with the DP. Application is forwarded NSDL by DP.

NSDL allots a number identified as CM BP ID.

DP opens account and an account number is provided along with CM BP ID to the clearing member.

The clearing account consists of three parts: Pool account Delivery account Receipt account

Clearing account (CC/HH):

Delivery Account

Pool account

Receipt

Selling Client

Buying Client

Pool Account: It has two roles to play in clearing of securities. Before pay in the selling client of the CM transfers ecurities from his client account to the CM pool Account. The CM transfers the securities from his pool Account to the account of the buying client. Delivery Account: The CM transfers the securities in, from the pool Account to the delivery Account before pay in at the time of pay-in NSDL flushes out the securities in the delivery Account and transfers the same to the CC/HH. Receipt Account: On pay- out day, the CC/HH transfers securities to the pool account through the receipt account. CM has to ensure that before book closure or record date of any company the securities are moved from CM pool Account to a beneficiary account as holding in pool Account for longer period is not allowed.

3. SETTLEMENT:

CM

Client

client

client

client

DP1

NSDL

DP2

Pool A/C

Client A A/C

Client B A/C

Client C A/C

Client D A/C

In the depository system, any trade that is cleared and settled through the clearing corporation (CC/HH) is called market trade.

Procedures for pay-in of securities: Give receipt instruction to the DP for transfer of securities from client account to the pool account or give a standing instruction for the same. Delivery to CC/HH instruction for the transfer of securities from pool account to delivery account for pay-in.

Clearing

Delivery Account

Pool Account

Both pay-in and pay-out happens to be on 5th working day after the trading and the instructions to transfer the securities from the pool account to delivery account must be given before pay-in such that this transfer is effected before pay-in. the transfer

instruction is taken as an authority to transfer the security irrespective of when the client gives the delivery instruction, the securities will be parked in the delivery account till final pay-in and the facility of multiple instructions from the pool account to the delivery account is also provided to the investors.In case of excess transfer of shares to the delivery account or excess delivery to CC/HH. The instruction slip can be cancelled and issued new one or the CC/HH will return the securities at the time of payout respectively. Procedure for payout of securities: Transfer of securities from CC/HH to pool account through receipt in account

Clearing

Receipt

Pool

Delivery instruction to transfer from pool account to client account on pay-out Client

CM

Client

Client

Client

Client

DP1

NSDL

DP2

Pool A/C

Client AA/C

Client BA/C

on the delivery of the instruction form the clients name, clients Dp ID and DP name of the client must be mentioned and ensure that receipt instruction given by client to receive the securities bears the same execution date as given in the delivery instruction. However, the broker can hold the securities in the pool account until the client meets

Client CA/C A/C

Client DA/C AA/C

his obligation but before the closure of books, the balances must be transferred as the balances in the pool account which are not entitled for any corporate benefits.

INTER DEPOSITORY TRANSFERS: Transfer of securities from an account in one depository to an account in another depository is termed as an inter depository transfer. This facility is quite similar to the account transfer with in NSDL.It can be done only for securities that are available for dematerialization on both the depositories.The account in NSDL of can be either a clearing account or a beneficiary account.For debiting the clearing account or the beneficial account with NSDL, the form for Inter depository delivery instructions is required to be submitted by the clearing member/beneficial owner to its DP.For crediting the clearing account or the beneficial account, the standing instruction given for automatically crediting the account is applicable. In case the standing instruction are not given, then the form for Inter Depository Receipt Instruction is required to be submitted by the clearing member/ beneficial owner to its DP.As both the depositories are connected to each another, the batches to effect inter depository transfers are presently exchanged twice on each working day.The issuer/registrar and transfers agent is informed about the transfer by both the depositories and it amends its accordingly. Government securities cannot be transferred from one depository to another using this facility.

REMATERIALIZATION OF SHARES: Rematerialization is the term used for converting electronic holdings back into physical certificates.It is the process of converting electronic shares in to physical shares. The DP will forward the investors request NSDL after verifying that the investors have the handle certificates. Necessary balances NSDL in turn will intimate the registrar who will print the certificates and dispatch the sale to investors. In this process NSDL doesnt directly. MATERIALIZATION OF SHARES: Materialization is the term used for converting electronic holdings back into physical certificates.The DP will forward the investors request to NSDL after verifying that the investors have the necessary balance NSDL in turn will intimate the registrar who will print the certificates and dispatch the same to investors in this process NSDL doesnt directly handle certificates. Steps involved in materialization:

Clients send RRF (Remat request form) to DP 1. 2. 3. DP sends the remat order to NSDL through system. DP sends the RRF and RRN to the issuer/RTA. NSDL then sends the remat request to issuer/ RTA.

4. 5. 6.

The issuer/ RTA intimate the confirmation /rejection status to NSDL. The NSDL in turn intimates this to DP. The issuer/ RTA send the printed certificates to the client.

NATIONAL SECURITIES DEPOSITORY LIMITED[NSDL]: NSDL was inaugurated in November 1996, as the first depository in the country to avoid the myriad problems in settlement.In depository system, securities are held in securities accounts. Which is more or less similar to holding funds in bank accounts? Transfer of ownership is done through simple account transfer. This method does away with all the risks and hassles normally associated with paper work. Consequently, the cost of transaction in depository environment lower as compared to transaction in physical certificates.Trading in dematerialized securities is quite similar to trading in physical securities. The major difference is that at the time of settlement, instead of delivery/receipt of securities in the physical form, the same is affected through account transfer. Currently dematerialized trading is available at NSE, BSE, CSE.Exclusive demat segment follow rolling settlement (T+3) cycle and the unified segment follows account period settlement cycle. All investors, other than the institutional investors, can deliver securities either in the physical or dematerialized form in the market. From January 4, 1999, all categories of investors ran deliver only in dematerialized form with respect to a select list of securities. However, initially this was applicable only at those exchanges, which have joined the depository, but SEBI has also specified that this list is to be expanded in a phased manner.The settlement of trades in the stock exchanges is undertaken by the clearing corporation (CC)/ clearinghouse (CH) of the corresponding stock exchanges. While settlement of dematerialized securities is effected through NSDL, the funds settlement is effected through the clearing banks. The physical securities are settled by the clearing members directly with the CC/CH.

OUTCRY SYSTEM

The broker has to buy or sell securities for which he has received the orders. For this, the broker or his authorized representatives goes to the stock exchange. This method is called the open outcry system. Basically the brokers shout while buying or selling the securities. The floor of the stock exchange is divided into a number of markets also known as post pit or wing based on particular securities dealt there. In the post pit or wing, the broker using open outcry method makes an offer or bid price. For making the necessary bargain, he quotes his purchase or sale price, also known as offer or bid price. The dealer, to whom the price is quoted, quotes his own price when the quotation of the dealer suits the broker, he may loose the bargain. If he is not satisfied with the quote price, he may turn to some other dealer. On the close of the bargain, the dealer as well as the broker makes a brief note of the particulars of the deal. Such notes are made on some pad and on it the number of shares, the price agreed upon, the name of the party, what membership number etc., are noted.

MANUAL TRADING

Trading procedure before introduction of online trading

Trading on stock exchanges is officially done in the trading ring. In the trading ring the space is provided for specified and non-specified sections, the members and their authorized assistants have to wear a badge or carry with them an identity card given by the exchange to enter the trading ring. They carry a sauda book or confirmation memos, duly authorized by the exchange and carry a pen with them. The stock exchanges operations are floor level are technical in nature .Non-

members are not permitted to enter in to stock market. Hence various stages have to be completed in executing a transaction at a stock exchange .The steps involved in this method of trading have given below:

Choice of broker:

The prospective investor who wants to buy shares or the investors, who wants to sell shares and transact business, have to act through member brokers only. They can also appoint their bankers for this purpose as per the present regulations.

Placement of order:

The next step is the placing order for the purchase or sale of securities with a broker. The order is usually placed by telegram, telephone, letter, fax etc or in person. To avoid delay, it is placed generally over the phone. The orders may take any one of the forms such as At Best Orders, Limit Order, Immediate or Cancel Order, Limited Discretionary Order, and Open Order, Stop Loss Order.

Execution of order or contract: Orders are executed in the trading ring of the BSE. This works from 11:30 to 2.30 P.M on all working days Monday to Friday, and a special one-hour session on Saturday. The members or the authorized assistants have to wear a badge given by the exchange to enter into the trading ring. They carry a sauda Block Book or conformation memos, which are duly authorized by the exchange when the deal is struck; both broker and jobber make a note in their sauda block books. From the sauda book, the contract notes are drawn up and posted to the client. A contract note is written agreement between the broker and his clients for the transaction executed.

Drawing Up and Bills:

Both sale and purchase bills are prepared along with the contract note and it is posted on the same day or the next day. This in a purchase transaction, once the shares are delivered to the client effects payment for the purchases and pays the stamp fees for transfer, a bill is made out giving the total cost of purchase, including other expenses incurred by the broker in the price itself. With this, the process ends. DETAILS OF PROCEDURES:

Delivery in : The members who are in pay-out position delivers share certificates in to clearing house within the settlement period along with the delivery Chelan filled in with the details of share certificates which has folio numbers or distinctive numbers etc. Delivery out: The buyer of shares who made pay in position will take delivery of shares from the clearing house. Pay-in: The member who is in paying position shall pay for value of shares with in the trading settlement period (T+2). Pay-out: The cheques paid in the clearinghouse will be paid to members who are in paying position.

The given flow chart clearly explains the process of online trading:

Login

Buy transcation
The system will check buying limits

Sell transcation
The system will check your dp account quantity

Orders accepted

Rejected orders would be communicated along with reasons

orders accepted

your order is transmitted to exchange for execution

pending buy orders would be displayed on your screen

on execution of your orders

pending sell orders would be displayed on your screen

you may edit your pending order

you may delete your pending order

you may edit your pending order

you may delete your pending order

flashed on your screen immediately on execution

conformationcoul d be send to your e-mail and mobile

contract note would be sent to by mail or hand delivery

CHAPTER III - INDUSTRY PROFILE

FINANCIAL MARKETS
Finance is the pre-requisite for modern business and financial institutions play a vital role in the economic system. It is through financial markets and institutions that the financial system of an economy works. Financial markets refer to the institutional arrangements for dealing in financial assets and credit instruments of different types such as currency, cheques, bank deposits, bills, bonds, equities, etc. Financial market is a broad term describing any marketplace where buyers and sellers participate in the trade of assets such as equities, bonds, currencies and derivatives. They are typically defined by having transparent pricing, basic regulations on trading, costs and fees and market forces determining the prices of securities that trade. Generally, there is no specific place or location to indicate a financial market. Wherever a financial transaction takes place, it is deemed to have taken place in the financial market. Hence financial markets are pervasive in nature since financial transactions are themselves very pervasive throughout the economic system. For instance, issue of equity shares, granting of loan by term lending institutions, deposit of money into a bank, purchase of debentures, sale of shares and so on. In a nutshell, financial markets are the credit markets catering to the various needs of the individuals, firms and institutions by facilitating buying and selling of financial assets, claims and services.

CLASSIFICATION OF FINANCIAL MARKETS

Financial markets

Organized markets

Unorganized markets Money Lenders, Indigenuos Bankers

Capital Markets

Money Markets

Industrial Securities Market

Call Money Market

Primary Market

Commercial Bill Market

Secondary market Government Securities Market Long-term loan market

Treasury Bill Market

Capital Market The capital market is a market for financial assets which have a long or indefinite maturity. Generally, it deals with long term securities which have a period of above one year. In the widest sense, it consists of a series of channels through which the savings of the community are made available for industrial and commercial enterprises and public authorities. As a whole, capital market facilitates raising of capital.

The major functions performed by a capital market are: 1. Mobilization of financial resources on a nation-wide scale. 2. Securing the foreign capital and know-how to fill up deficit in the required resources for economic growth at a faster rate. 3. Effective allocation of the mobilized financial resources, by directing the same to projects yielding highest yield or to the projects needed to promote balanced economic development.

Capital market consists of primary market and secondary market. Primary market: Primary market is a market for new issues or new financial claims. Hence it is also called as New Issue Market. It basically deals with those securities which are issued to the public for the first time. The market, therefore, makes available a new block of securities for public subscription. In other words, it deals with raising of fresh capital by companies either for cash or for consideration other than cash. The best example could be Initial Public Offering (IPO) where a firm offers shares to the public for the first time.

Secondary market: Secondary market is a market where existing securities are traded. In other words, securities which have already passed through new issue market are traded in this market. Generally, such securities are quoted in the stock exchange and it provides a continuous and regular market for buying and selling of securities. This market consists of all stock exchanges recognized by the government of India.

Money Market Money markets are the markets for short-term, highly liquid debt securities. Money market securities are generally very safe investments which return relatively low interest rate that is most appropriate for temporary cash storage or short term time needs. It consists of a number of sub-markets which collectively constitute the money market namely call money market, commercial bills market, acceptance market, and Treasury bill market. Derivatives Market The derivatives market is the financial market for derivatives, financial instruments like futures contracts or options, which are derived from other forms of assets. A derivative is a security whose price is dependent upon or derived from one or more underlying assets. The derivative itself is merely a contract between two or more parties. Its value is determined by fluctuations in the underlying asset. The most common underlying assets include stocks, bonds, commodities, currencies, interest rates and market indexes. The important financial derivatives are the following:

Forwards: Forwards are the oldest of all the derivatives. A forward contract refers to an agreement between two parties to exchange an agreed quantity of an asset for cash at a certain date in future at a predetermined price specified in that agreement. The promised asset may be currency, commodity, instrument etc.

Futures: Future contract is very similar to a forward contract in all respects excepting the fact that it is completely a standardized one. It is nothing but a standardized forward contract which is legally enforceable and always traded on an organized exchange.

Options: A financial derivative that represents a contract sold by one party (option writer) to another party (option holder). The contract offers the buyer the right, but not the obligation, to buy (call) or sell (put) a security or other financial asset at an agreed-upon price (the strike price) during a certain period of time or on a specific date (exercise date). Call options give the option to buy at certain price, so the buyer would want the stock to go up. Put options give the option to sell at a certain price, so the buyer would want the stock to go down.

Swaps: It is yet another exciting trading instrument. Infact, it is the combination of forwards by two counterparties. It is arranged to reap the benefits arising from the fluctuations in the market either currency market or interest rate market or any other market for that matter.

It is a market in which participants are able to buy, sell, exchange and speculate on currencies. Foreign exchange markets are made up of banks, commercial companies, central banks, investment management firms, hedge funds, and retail forex brokers and investors. The forex market is considered to be the largest financial market in the world. It is a worldwide decentralized over-the-counter financial market for the trading of currencies. Because the currency markets are large and liquid, they are believed to be the most efficient financial markets. It is important to realize that the foreign exchange market is not a single exchange, but is constructed of a global network of computers that connects participants from all parts of the world.

Commodities Market

It is a physical or virtual marketplace for buying, selling and trading raw or primary products. For investors' purposes there are currently about 50 major commodity markets worldwide that facilitate investment trade in nearly 110 primary commodities. Commodities are split into two types: hard and soft commodities. Hard commodities are typically natural resources that must be mined or extracted (gold, rubber, oil, etc.), whereas soft commodities are agricultural products or livestock (corn, wheat, coffee, sugar, soybeans, pork, etc.)

INDIAN FINANCIAL MARKETS

India Financial market is one of the oldest in the world and is considered to be the fastest growing and best among all the markets of the emerging economies.

The history of Indian capital markets dates back 200 years toward the end of the 18th century when India was under the rule of the East India Company. The development of the capital market in India concentrated around Mumbai where no less than 200 to 250 securities brokers were active during the second half of the 19th century. The financial market in India today is more developed than many other sectors because it was organized long before with the securities exchanges of Mumbai, Ahmadabad and Kolkata were established as early as the 19th century. By the early 1960s the total number of securities exchanges in India rose to eight, including Mumbai, Ahmadabad and Kolkata apart from Madras, Kanpur, Delhi, Bangalore and Pune. Today there are 21 regional securities exchanges in India in addition to the centralized NSE (National Stock Exchange) and OTCEI (Over the Counter Exchange of India).

However the stock markets in India remained stagnant due to stringent controls on the market economy that allowed only a handful of monopolies to dominate their respective sectors. The corporate sector wasn't allowed into many industry segments, which were dominated by the state controlled public sector resulting in stagnation of the economy right up to the early 1990s. Thereafter when the Indian economy began liberalizing and the controls began to be dismantled or eased out; the securities markets

witnessed a flurry of IPOs that were launched. This resulted in many new companies across different industry segments to come up with newer products and services.

A remarkable feature of the growth of the Indian economy in recent years has been the role played by its securities markets in assisting and fuelling that growth with money rose within the economy. This was in marked contrast to the initial phase of growth in many of the fast growing economies of East Asia that witnessed huge doses of FDI (Foreign Direct Investment) spurring growth in their initial days of market decontrol. During this phase in India much of the organized sector has been affected by high growth as the financial markets played an all-inclusive role in sustaining financial resource mobilization. Many PSUs (Public Sector Undertakings) that decided to offload part of their equity were also helped by the well-organized securities market in India.

The launch of the NSE (National Stock Exchange) and the OTCEI (Over the Counter Exchange of India) during the mid 1990s by the government of India was meant to usher in an easier and more transparent form of trading in securities. The NSE was conceived as the market for trading in the securities of companies from the large-scale sector and the OTCEI for those from the small-scale sector. While the NSE has not just done well to grow and evolve into the virtual backbone of capital markets in India the OTCEI struggled and is yet to show any sign of growth and development. The integration of IT into the capital market infrastructure has been particularly smooth in India due to the countrys world class IT industry. This has pushed up the operational efficiency of the Indian stock market to global standards and as a result the country has

been able to capitalize on its high growth and attract foreign capital like never before. The regulating authority for capital markets in India is the SEBI (Securities and Exchange Board of India). SEBI came into prominence in the 1990s after the capital markets experienced some turbulence. It had to take drastic measures to plug many loopholes that were exploited by certain market forces to advance their vested interests. After this initial phase of struggle SEBI has grown in strength as the regulator of Indias capital markets and as one of the countrys most important institutions.

FINANCIAL MARKET REGULATIONS

Regulations are an absolute necessity in the face of the growing importance of capital markets throughout the world. The development of a market economy is dependent on the development of the capital market. The regulation of a capital market involves the regulation of securities; these rules enable the capital market to function more efficiently and impartially.

A well regulated market has the potential to encourage additional investors to partake, and contribute in, furthering the development of the economy. The chief capital market regulatory authority is Securities and Exchange Board of India (SEBI).

SEBI is the regulator for the securities market in India. It is the apex body to develop and regulate the stock market in India It was formed officially by the Government of India in 1992 with SEBI Act 1992 being passed by the Indian Parliament. Chaired by C B Bhave, SEBI is headquartered in the popular business district of Bandra-Kurla complex in Mumbai, and has Northern, Eastern, Southern and Western regional offices in New Delhi, Kolkata, Chennai and Ahmedabad. In place of Government Control, a statutory and autonomous regulatory board with defined responsibilities, to cover both development & regulation of the market, and independent powers has been set up.

The basic objectives of the Board were identified as:

to protect the interests of investors in securities; to promote the development of Securities Market; to regulate the securities market and For matters connected therewith or incidental thereto.

Since its inception SEBI has been working targeting the securities and is attending to the fulfillment of its objectives with commendable zeal and dexterity. The improvements in the securities markets like capitalization requirements, margining, establishment of clearing corporations etc. reduced the risk of credit and also reduced the market.

SEBI has introduced the comprehensive regulatory measures, prescribed registration norms, the eligibility criteria, the code of obligations and the code of conduct for different intermediaries like, bankers to issue, merchant bankers, brokers and subbrokers, registrars, portfolio managers, credit rating agencies, underwriters and others. It has framed bye-laws, risk identification and risk management systems for Clearing houses of stock exchanges, surveillance system etc. which has made dealing in securities both safe and transparent to the end investor.

Another significant event is the approval of trading in stock indices (like S&P CNX Nifty & Sensex) in 2000. A market Index is a convenient and effective product because of the following reasons:

It acts as a barometer for market behavior; It is used to benchmark portfolio performance; It is used in derivative instruments like index futures and index options; It can be used for passive fund management as in case of Index Funds.

Two broad approaches of SEBI is to integrate the securities market at the national level, and also to diversify the trading products, so that there is an increase in number of traders including banks, financial institutions, insurance companies, mutual funds, primary dealers etc. to transact through the Exchanges. In this context the introduction of derivatives trading through Indian Stock Exchanges permitted by SEBI in 2000 AD is a real landmark.

SEBI has enjoyed success as a regulator by pushing systemic reforms aggressively and successively (e.g. the quick movement towards making the markets electronic and paperless rolling settlement on T+2 bases). SEBI has been active in setting up the regulations as required under law.

STOCK EXCHANGES IN INDIA

Stock Exchanges are an organized marketplace, either corporation or mutual organization, where members of the organization gather to trade company stocks or other securities. The members may act either as agents for their customers, or as principals for their own accounts.

As per the Securities Contracts Regulation Act, 1956 a stock exchange is an association, organization or body of individuals whether incorporated or not, established for the purpose of assisting, regulating and controlling business in buying, selling and dealing in securities.

Stock exchanges facilitate for the issue and redemption of securities and other financial instruments including the payment of income and dividends. The record keeping is central but trade is linked to such physical place because modern markets are computerized. The trade on an exchange is only by members and stock broker do have a seat on the exchange.

List of Stock Exchanges in India Bombay Stock Exchange National Stock Exchange OTC Exchange of India Regional Stock Exchanges 1. Ahmedabad 2. Bangalore 3. Bhubaneswar 4. Calcutta 5. Cochin 6. Coimbatore 7. Delhi 8. Guwahati 9. Hyderabad 11. Jaipur 12. Ludhiana 12. Madhya Pradesh 13. Madras 14. Magadh 15. Mangalore 16. Meerut 17. Pune 18. Saurashtra Kutch 19. Uttar Pradesh 20. Vadodara

BOMBAY STOCK EXCHANGE

A very common name for all traders in the stock market, BSE, stands for Bombay Stock Exchange. It is the oldest market not only in the country, but also in Asia. In the early days, BSE was known as "The Native Share & Stock Brokers Association." It was established in the year 1875 and became the first stock exchange in the country to be recognized by the government. In 1956, BSE obtained a permanent recognition from the Government of India under the Securities Contracts (Regulation) Act, 1956.

In the past and even now, it plays a pivotal role in the development of the country's capital market. This is recognized worldwide and its index, SENSEX, is also tracked worldwide. Earlier it was an Association of Persons (AOP), but now it is a demutualised and corporatised entity incorporated under the provisions of the Companies Act, 1956, pursuant to the BSE (Corporatisation and Demutualization) Scheme, 2005 notified by the Securities and Exchange Board of India (SEBI).

BSE Vision The vision of the Bombay Stock Exchange is to "Emerge as the premier Indian stock exchange by establishing global benchmarks."

POST INDEPENDANCE SCENARIO: The depression witnessed after the Independence led to closure of a lot of exchanges in the country. Lahore Estock Exchange was closed down after the partition of India, and later on merged with the Delhi Stock Exchange. Bangalore Stock Exchange Limited was registered in 1957 and got recognition only by 1963. Most of the other Exchanges were in a miserable state till 1957 when they applied for recognition under Securities Contracts (Regulations) Act, 1956. The Exchanges that were recognized under the Act were: 1. Bombay 2. Calcutta 3. Madras 4. Ahmedabad 5. Delhi 6. Hyderabad 7. Bangalore 8. Indore Many more stock exchanges were established during 1980's, namely:

Cochin Stock Exchange (1980) Uttar Pradesh Stock Exchange Association Limited (at Kanpur, 1982) Pune Stock Exchange Limited (1982) Ludhiana Stock Exchange Association Limited (1983) Gauhati Stock Exchange Limited (1984) Kanara Stock Exchange Limited (at Mangalore, 1985) Magadh Stock Exchange Association (at Patna, 1986) Jaipur Stock Exchange Limited (1989) Bhubaneswar Stock Exchange Association Limited (1989) Saurashtra Kutch Stock Exchange Limited (at Rajkot, 1989) Vadodara Stock Exchange Limited (at Baroda, 1990) Coimbatore Stock Exchange Meerut Stock Exchange

At present, there are twenty one recognized stock exchanges in India which does not include the Over The Counter Exchange of India Limited (OTCEI) and the National Stock Exchange of India Limited (NSEIL). Government policies during 1980's also played a vital role in the development of the Indian Stock Markets. There was a sharp increase in number of Exchanges, listed companies as well as their capital, which is visible from the following table:

S. No. 1 2 3 4 5

As on 31st December No. of Stock Exchanges No. of Listed Cos. No. of Stock Issues of Listed Cos. Capital of Listed Cos. (Cr. Rs.) Market value of Capital of Listed Cos. (Cr. Rs.) Capital per Listed Cos. (4/2) (Lakh Rs.) Market Value of Capital per Listed Cos. (Lakh Rs.) (5/2) Appreciated value of Capital per Listed Cos. (Lak Rs.)

1946 1961 1971 1975 1980 1985 7 7 8 8 9 14 4344 6174 9723

1991 20 6229 8967 32041

1995 22 8593 12784 59583

1225 1203 1599 1552 2265 1506 2121 2838 3230 3697 270 753 1812 2614 3973

971 1292 2675 3273 6750 25302 120279 478121

24

63

123

168

175

224

514

693

86

117

167

212

298

582

1770

5564

358

170

148

126

170

260

344

803

Trading Pattern of the Indian Stock Market Indian Stock Exchanges allow trading of securities of only those public limited companies that are listed on the Exchange(s). They are divided into two categories:

Types of Transactions: The flowchart below describes the types of transactions that can be carried out on the Indian stock exchanges:

Indian stock exchange allows a member broker to perform following activities:

Act as an agent,

Buy and sell securities for his clients and charge commission for the same, Act as a trader or dealer as a principal, Buy and sell securities on his own account and risk.

Over The Counter Exchange of India (OTCEI) Traditionally, trading in Stock Exchanges in India followed a conventional style where people used to gather at the Exchange and bids and offers were made by open outcry.

This age-old trading mechanism in the Indian stock markets used to create many functional inefficiencies. Lack of liquidity and transparency, long settlement periods and benami transactions are a few examples that adversely affected investors. In order to overcome these inefficiencies, OTCEI was incorporated in 1990 under the Companies Act 1956. OTCEI is the first screen based nationwide stock exchange in India created by Unit Trust of India, Industrial Credit and Investment Corporation of India, Industrial Development Bank of India, SBI Capital Markets, Industrial Finance Corporation of India, General Insurance Corporation and its subsidiaries and Can Bank Financial Services.

Advantages of OTCEI:

Greater liquidity and lesser risk of intermediary charges due to widely spread trading mechanism across India

The screen-based scrip less trading ensures transparency and accuracy of prices Faster settlement and transfer process as compared to other exchanges Shorter allotment procedure (in case of a new issue) than other exchanges

EQUITY MARKET: The Indian Equity Market is also the other name for Indian share market or Indian stock market. The equity brokerage industry in India is one of the oldest in the Asia region. India had an active stock market for about 150 years that played a significant role in developing risk markets as also promoting enterprise and supporting the growth of industry. India has been one of the best performers in the world economy in recent years, but rapidly rising inflation and the complexities of running the worlds biggest democracy are proving challenging.

STRUCTURE OF EQUITY MARKET: The Indian market of equities is transacted on the basis of two major stock indices, National Stock Exchange of India Ltd. (NSE) and The Bombay Stock Exchange (BSE). In terms of market capitalization, there are over 2500 companies in the BSE chart list with the Reliance Industries Limited at the top. The SENSEX today has rose from 1100 levels to 8000 levels providing a profitable business to all those who had been investing in the Indian Equity Market. There are about 22 stock exchanges in India which regulates the market trends of different stocks. Generally the bigger companies are listed with the NSE and the BSE, but there is the OTCEI or the Over the Counter Exchange of India, which lists the medium and small sized companies. There is the SEBI or the Securities and Exchange Board of India which supervises the functioning of the stock markets in India. Stock markets became intensely technology and process driven, giving little scope for manual intervention that has been the source of market abuse in the past. Electronic trading, digital certification, straight through processing, electronic contract notes, online broking have emerged as major trends in technology. Risk management became robust reducing the recurrence of payment defaults. Product expansion took place in a speedy manner. Stock exchange reforms brought in professional management separating conflicts of interest between brokers as owners of the exchanges and traders/dealers.

Every asset has a value; we just dont know what it is, states Professor Damodaran. Thus valuation is the first step toward intelligent investing. Valuation of a firm or an equity as a going concern is the basis for any investment exercise. Knowing what an asset is worth and what determines that value is a pre-requisite for intelligent decision making -- in choosing investments for a portfolio, in deciding on the appropriate price to pay or receive in a takeover and in making investment, financing and dividend choices when running a business. Without original value, one is set floating in a sea of random short-term price movements and gut feelings. It is important for the Finance Manager in particular and other manager in general to understand the process and method of valuing equity or a firm. The valuation of equity is dependent on the basic financial concepts of Time Value of Money, Risk and Return and Future Cash Flow.

VALUATION : The term valuation implies the task of estimating the worth/value of an asset, a security, or a business. The price an investor or a firm (buyer) is willing to pay to purchase a specific asset/security would be related to this value. Therefore equity valuation is;

EQUITY VALUATION: Determining the total value of a company involves more than reviewing assets and revenue figures. An equity valuation takes several financial indicators into account; these include both tangible and intangible assets, and provide prospective investors, creditors or shareholders with an accurate perspective of the true value of a company at any given time. Equity valuations are conducted to measure the value of a company given its current assets and position in the market. These data points are valuable for shareholders and prospective investors who want to find out if the company is performing well, and what to expect with their stocks or investments in the near future. Valuation methods based on the equity of a company typically

include a thorough analysis of cash accounts, as well as a forecast or projection of future dividends, future earnings (revenue) and the distribution of dividends. FEATURES OF EQUITY VALUATION: Following are the features of Equity Valuation; Equity Valuation is a highly specialized process. Like other assets in finance, the value of a stock is the Present Value of its Cash Flows. The total equity of a company is the sum of both tangible assets and intangible qualities. Tangible assets include working capital, cash, and inventory and shareholder equity. Intangible qualities, or intangible "assets," may include brand potential, trademarks and stock valuations. The valuation may also take the firm's enterprise value (EV) into account; this is calculated by combining the net debt per share with the price per share. Performance indicators include the price/earnings ratio, dividend yield, and the Earnings Before Interest, Depreciation and Amortization (EBIDA). Any company under consideration for sale needs proficient, objective valuation, whether its stock is privately owned by one individual or publicly traded on one or more of the major exchanges or in the over the counter market. Stocks are typically valued as perpetual securities as corporations potentially have an infinite life, and thus can pay dividends forever.

Today many organizations are frequently employing some form of competency mapping to understand how to most effectively employ the competencies of strengths of workers. They are also using competency mapping to analyze the combination of strengths in different workers to produce the most effective teams and the highest quality work. The value of competency mapping and identifying emotional strengths is that many employers now purposefully screen employees to hire people with specific competencies. They may need to hire someone who can be an effective time leader or who has demonstrated great active listening skills. Alternately, they may need someone who enjoys taking initiative or someone who is very good at taking direction. When individuals must seek new jobs, knowing ones competencies can give one a competitive edge in the job market.

Usually, a person will find themselves with strengths in about five to six areas. Sometimes an area where strengths are not present is worth developing. In other cases, competency mapping can indicate finding work that is suited to ones strengths, or finding a department at ones current work where one's strengths or needs as a worker can be exercised. A problem with competency mapping, especially when conducted by an organization is that there may be no room for an individual to work in a field that would best make use of his or her competencies. If the company does not respond to competency mapping by reorganizing its employees, then it can be of little short-term benefit and may actually result in greater unhappiness on the part of individual employees. A person identified as needing to learn new things in order to remain happy might find himself or herself in a position where no new training is ever required. If the employer cannot provide a position for an employee that fits him or her better, competency mapping may be of little use.

BSE Management Bombay Stock Exchange is managed professionally by Board of Directors. It comprises of eminent professionals, representatives of Trading Members and the Managing Director. The Board is an inclusive one and is shaped to benefit from the market intermediaries participation.

The Board exercises complete control and formulates larger policy issues. The day-to-day operations of BSE are managed by the Managing Director and its school of professional as a management team. BSE Network The Exchange reaches physically to 417 cities and towns in the country. The framework of it has been designed to safeguard market integrity and to operate with transparency. It provides an efficient market for the trading in equity, debt instruments and derivatives. Its online trading system, popularly known as BOLT, is a proprietary system and it is BS 7799-2-2002 certified. The BOLT network was expanded, nationwide, in 1997. The surveillance and clearing & settlement functions of the Exchange are ISO 9001:2000 certified.

BSE Facts

BSE as a brand is synonymous with capital markets in India. The BSE SENSEX is the benchmark equity index that reflects the robustness of the economy and finance. It was the

First in India to introduce Equity Derivatives First in India to launch a Free Float Index First in India to launch US$ version of BSE Sensex First in India to launch Exchange Enabled Internet Trading Platform

First in India to obtain ISO certification for Surveillance, Clearing & Settlement 'BSE On-Line Trading System (BOLT) Security has been awarded the globally standard

recognized

the

Information

Management

System

BS7799-2:2002. First to have an exclusive facility for financial training Moved from Open Outcry to Electronic Trading within just 50 days

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

NATIONAL

STOCK

EXCHANGE

OF

INDIA

LIMITED

The National Stock Exchange of India Limited has genesis in the report of the High Powered Study Group on Establishment of New Stock Exchanges, which recommended promotion of a National Stock Exchange by financial institutions (FIs) to provide access to investors from all across the country on an equal footing. Based on the recommendations, NSE was promoted by leading Financial Institutions at the behest of the Government of India and was incorporated in November 1992 as a tax-paying company unlike other stock Exchange in the country. On its recognition as a stock exchange under the Securities Contracts (Regulation) Act, 1956 in April 1993, NSE commenced operations in the Wholesale Debt Market (WDM) segment in June 1994. The Capital Market (Equities) segment commenced operations in November 1994 and operations in Derivatives segment commenced in June 2000.

NSE GROUP National Securities Clearing Corporation Ltd. (NSCCL) It is a wholly owned subsidiary, which was incorporated in August 1995 and commenced clearing operations in April 1996. It was formed to build confidence in clearing and settlement of securities, to promote and maintain the short and consistent settlement cycles, to provide a counter-party risk guarantee and to operate a tight risk containment system. NSE.IT Ltd. It is also a wholly owned subsidiary of NSE and is its IT arm. This arm of the NSE is uniquely positioned to provide products, services and solutions for the securities industry. NSE.IT primarily focuses on in the area of trading, broker front-end and back-office, clearing and settlement, web-based, insurance, etc. Along with this, it also provides consultancy and implementation services in Data Warehousing, Business Continuity Plans, Site Maintenance and

Backups, Stratus Mainframe Facility Management, Real Time Market Analysis & Financial News. India Index Services & Products Ltd. (IISL) It is a joint venture between NSE and CRISIL Ltd. to provide a variety of indices and index related services and products for the Indian Capital markets. It was set up in May 1998. IISL has a consulting and licensing agreement with the Standard and Poor's (S&P), world's leading provider of investible equity indices, for co-branding equity indices.

National Securities Depository Ltd. (NSDL) NSE joined hands with IDBI and UTI to promote dematerialization of securities. This step was taken to solve problems related to trading in physical securities. It commenced operations in November 1996.

NSE Facts

It uses satellite communication technology to energize participation from around 400 cities in India.

NSE can handle up to 1 million trades per day. It is one of the largest interactive VSAT based stock exchanges in the world. The NSE- network is the largest private wide area network in India and the first extended C- Band VSAT network in the world.

Presently more than 9000 users are trading on the real time-online NSE application.

Today, NSE is one of the largest exchanges in the world and still forging ahead. At NSE, we are constantly working towards creating a more transparent, vibrant and innovative capital market.

OVER THE COUNTER EXCHANGE OF INDIA

OTCEI was incorporated in 1990 as a section 25 company under the companies Act 1956 and is recognized as a stock exchange under section 4 of the securities Contracts Regulation Act, 1956. The exchange was set up to aid enterprising promotes in raising finance for new projects in a cost effective manner and to provide investors with a transparent and efficient mode of trading Modeled along the lines of the NASDAQ market of USA, OTCEI introduced many novel concepts to the Indian capital markets such as screen-based nationwide trading, sponsorship of companies, market making and scrip less trading. As a measure of success of these efforts, the Exchange today has 125 listings and has assisted in providing capital for enterprises that have gone on to build successful brands for themselves like VIP Advanta, Sonora Tiles & Brilliant mineral water, etc.

Need for OTCEI: Studies by NASSCOM, software technology parks of India, the venture capitals funds and the governments IT tasks Force, as well as rising interest in IT, Pharmaceutical, Biotechnology and Media shares have repeatedly emphasized the need for a national stock market for innovation and high growth companies.

Innovative companies are critical to developing economics like India, which is undergoing a major technological revolution. With their abilities to generate employment opportunities and contribute to the economy, it is essential that these companies not only expand existing operations but also set up new units. The key issue for these companies is raising timely, cost effective and long term capital to sustain their operations and enhance growth. Such companies, particularly those that have been in operation for a short time, are unable to raise funds through the traditional financing methods, because they have not yet been evaluated by the financial world.

ABOUT SHAREKHAN LIMITED

Sharekhan Limited is one of the fastest growing financial services providers with a focus on equities, derivatives and commodities brokerage execution on the National Stock Exchange of India Ltd. (NSE), Bombay Stock Exchange Ltd. (BSE), National Commodity and Derivatives Exchange India (NCDEX) and Multi Commodity Exchange of India Ltd. (MCX). Sharekhan provides trade execution services through multiple channels - an Internet platform, telephone and retail outlets and is present in 280 cities through a network of 704 locations. The company was awarded the 2005 Most Preferred Stock Broking Brand by Awwaz Consumer Vote.

ORIGIN
Sharekhan traces its lineage to SSKI, an organization with more than decades of trust and credibility in the stock market. Pioneers of online trading in India- Sharekhan.com was launched in 2000 and is now the second most visited broking site in India. Has one of the largest networks of Share shops in the country.

SHAREHOLDING PATTERN
SHAREHOLDERS CITI Venture Capital and other Private Equity Firm IDFC Employees HOLDINGS 81% 9% 10%

MANAGEMENT TEAM CONSISTS OFNAME Tarun Shah Mr. Pathik Gandotra Mr. Rishi Kohli Jaideep Arora Shankar Vailaya POST Chief Executive Officer Head Of Research Vice President Of Equity Derivative Director- Products And Technology Director- Operation

Sharekhan Limited offers blend of tradition and technology like Share shops, dial-n-trade and online trading- where there is choice of three trading interfaces which are speed trade exe for active trader, web based classic interface for

investor, web based applet- fast trade for investor. Sharekhan Limited was formerly known as SSKI Investor Services Private Limited. The company is based in Mumbai, India and its address is- A-206 Phoenix House, 2nd Floor Senapati Bapat Marg, Lower Parel Mumbai, 400 013. India Phone: 91 22 24982000 Fax: 91 22 24982626

www.sharekhan.com Advanced Technology Used By Sharekhan Sharekhan selected Aspect EnsemblePro from the Aspect Software Unified IP Contact Center product line, a unified contact centre solution delivering advanced multichannel contact capabilities, because it provided the best total value over other solutions evaluated. It enabled Sharekhan to meet customer service needs for inbound call handling, voice self service, predictive outbound dialing, call blending, call monitoring and recording, and creating outbound marketing campaigns, among other capabilities. This helps them to Increased agent efficiency and productivity. Enabled company to execute proactive customer service calls and expand services offered to customers. Enhanced call monitoring for improved service quality

Financial services are a highly competitive and volume-driven industry which demands high standards of customer service, effective consultation and quick deliverables. This is something Sharekhan Limited, a financial services provider based in India, understands. The company offers several user-friendly services for customers to manage their stock portfolios, including online capabilities linked to an information database to help customers confidently invest, and inbound customer services using voice self-service technology and customer service agents handling telephone orders from clients. With a customer base of more than 500000, and a employee of 3100 Sharekhan continues to grow at a fast pace. Customer satisfaction is a top priority in Sharekhans agenda.

Its primary objective Is to help and support its customers in managing their portfolio in the best possible manner through quality advice, innovative product and superior service. Scheme which are provided by Sharekhan cover almost every segment of the customer-

SCHEME First Step Classic Speed Trade Platinum Circle

INVESTOR New Comer Trade Occasionally Day Trader High Net Worth Individuals

SHAREKHAN Company is India's second-largest company with total assets of about Rs. 2,513.89 bn (US$ 56.3 bn) at March 31, 2006 and profit after tax of Rs. 25.40 bn (US$ 569 mn) for the year ended March 31, 2006 (Rs. 20.05 bn (US$ 449 mn) for the year ended March 31, 2005). SHAREKHAN Company has a network of about 614 branches and extension counters and over 2,200 ATMs. SHAREKHAN Company offers a wide range of companying products and financial services to corporate and retail customers through a variety of delivery channels and through its specialized subsidiaries and affiliates in the areas of investment companying, life and non-life insurance, venture capital and asset management. SHAREKHAN Company set up its international companying group in fiscal 2002 to cater to the cross border needs of clients and leverage on its domestic companying strengths to offer products internationally. SHAREKHAN Company currently has subsidiaries in the United Kingdom, Russia and Canada, branches in Singapore, Bahrain, Hong Kong, Sri Lanka and Dubai International Finance Centre and representative offices in the United States, United Arab Emirates, China, South Africa and Bangladesh. Our UK subsidiary has established a branch in Belgium. SHAREKHAN Company is the most valuable company in India in terms of market capitalization.

Board of Directors
Mr. K. V. Kamath Mr. Barry Stowe Mr. Ajay Srinivasan Ms. Kalpana Morporia Mr. K. S. Mehta Mr. Dadi Engineer Mr. B. R. Gupta Dr. Swati A. Piramal Ms. Shikha Sharma Mr. Vikram B. Trivedi Mr. Vijay Thacker Mr. Pankaj Razdan Mr. Eruch B. Desai Mr. Keki Bomi Dadiseth Mr. D. J. Balaji Rao Mr. M. S. Parthasarathy Ms. Vishakha Mulye

Finance Department
Procurement of finance is mainly done through investment in Mutual Fund.

Role of Financial Department Diagram 1

SHARE KHAN, a professionally managed Investment advisory services company, developed in Investors Profit/Loss from the year 1985 by three young entrepreneurs with an intension to Minimization of Risk and Portfolio of Investment Maximization of Return in the field of Indian Capital markets by extensive research work. Invest / Pool Their Money Mutual Fund Co. As a sub member of NSE, BSE, MCX, NCDEX, NSDL and CDSL, which are pioneers in the ( Pool of Money ) respective operations, SHARE KHAN is having more than 500 branches in all over India. Profit/Loss from Share khan, Indias leading stock broker is the retailIndividual arm of SSKI, an organization with over Investment Invest In Number eighty years of experience in the stock market with more than 280 share shops in 120 cities and of Stocks / Bonds big towns, and premier online trading destination www.sharekhan.com. Share khan offers the Fluctuates trade execution facilities for cash Market as well as derivatives, on BSE and NSE, depository services, commodities trading on the MCX(Multi Commodity Exchange of India Ltd) and NCDEX (National Commodity and Derivative Exchange) and most importantly, investment advice tempered by eighty years of broking experience. Share khan provides the facility to trade in commodities through Share khan Commodities Pvt.Ltd-a wholly owned subsidiary of its parent SSKI. Share khan is the member of two major commodity exchanges MCX and NCDEX.

SSKI
Apart from Share khan, the SSKI group also comprises of institutional broking and corporate finance. The institutional broking division caters to domestic and foreign institutional investors,

while the corporate finance division focuses on niche areas such as infrastructure, telecom and media. SSKI owns 56% in Share khan and the balance ownership is HSBC, First Caryl and Intel Pacific. SSKI has been voted as the top domestic brokerage house in the research category, twice by Euro money survey and four times by Asia money survey.

SHARE KHAN is on-par with the investor expectations in providing professional services, namely Online Trading in Equity, Commodities and F&O Framing of Derivative strategies Depository Services (D-MAT) Initial Public Offers (IPO) and Book Buildings Distribution of Mutual Funds Portfolio Management Service (PMS) etc., through its member Corporate training for executives on NCFM (National Stock Exchange Certificate inn Financial Markets)

SHARE KHAN IS IN MARKET BECAUSE OF: Investor care is of paramount importance at SHARE KHAN. SHARE KHAN offers large avenues of investment solutions for all classes of investors under one roof. SHARE KHAN experience is one of prized possession. SHARE KHAN has an experience of more than 20 years wherein grown phenomenally. One of the most competitive brokerage structure. Hassle free trading experience.

 Timely advice along with research support to the clients through SMS and E-MAILS on EQUITIES, DERIVATIVES, COMMODITIES, IPOs and Mutual Funds.

VALUE FOR INVESTOR'S TRUST

INTEGRITY AND HONESTY

SHARE KHAN APPROACH:

UN BIASED INVESTMENT ADVISORY PERSONALIZED ATTENTION RESEARCH BASED ADVISORY SERVICES

Share khan won the award by the vote of consumers around the country, as part of Indias largest consumer study cover 7000 respondents 21 products and services across 21 major cities. The study, initiated by Awaaz Indias first dedicated Consumer Channel and member of the worldwide CNBC Network, and AC Nielsen ORG Marg, was aimed at understanding the brand preferences of the consumers and to decipher what are the most important loyalty criteria for the consume in each vertical.

In order to select the award recipient, spontaneous responses, rather than prompted responses were garnered, with an intention to glean unbiased preferences. Opinions were garnered from owners of each of the categories, to get experiential responses, which are likely to be more realistic and grounded in nature. Further, preference also indicates future intentions of repeat

purchases.

The reasons behind the preferences for brands were unveiled by examining the following: Tangible features of product / service Softer, intangible features like imagery, equity driving preference Tactical measures such as promotional / pricing schemes Share khan is honored to be voted as the Most Preferred Stock Broking Brand in India. Our focus has always been to demystify the stock market and empower the investors to take informed decisions, said Jaideep Arora, Director, Share khan. The Award increases Share khans responsibility to persistently delight our customers with user-friendly trading experience and we shall continue our focus to evolve business strategies that keep us aligned with our customers needs.

VISION:
To Become Successful Investment Advisors by developing the strategies which are implement able and leads to provide better returns than Bench mark portfolios.