-share market & financial system-jntu format
TRANSCRIPT
-
8/6/2019 -Share Market & Financial System-jntu Format
1/73
Index
CONTENTS PAGE NO.
CHAPTER 1 INTRODUCTION
CHAPTER 2 RESEARCH METHODOLOGY
CHAPTER 3 INDUSTRY PROFILE
CHAPTER 4 COMPANY PROFILE
CHAPTER 5 THEORETICAL FRAME WORK
CHAPTER 6 DATA ANALYSIS & INTERPRETATION
CHAPTER 7 FINDINGS & SUGGESTIONS
CHAPTER 8 CONCLUSION & BIBLIOGRAPHY
ANNEXURE QUESTIONNAIRE
-
8/6/2019 -Share Market & Financial System-jntu Format
2/73
CHAPTER -1
INTRODUCTION
-
8/6/2019 -Share Market & Financial System-jntu Format
3/73
The Bombay Stock Exchange in India
Type Stock Exchange
Location Mumbai, India
Owner Bombay Stock Exchange Limited
Key people Rajnikant Patel (CEO)
Currency INR
No. of listings ~6,000
MarketCap US$ 1.61 trillion (2006)
Volume US$ 980 billion (2006)
Indexes BSE Sensex
Website http://www.bseindia.com/
STOCK MARKET
A s t o c k m a r k e t , o r ( e q u i t y m a r k e t ) , i s a p r i v a t e o r p u b l i c m a r k e t f o rt h e t r a d i n g o f c o m p a n y s t o c k a n d d e r i v a t i v e s o f c o m p a n y s t o c k a t a na g r e e d p r i c e ; t h e s e a r e s e c u r i t i e s l i s t e d o n a s t o c k e x c h a n g e a s w e l la s t h o s e o n l y t r a d e d p r i v a t e l y .
T h e s i z e o f t h e w o r l d s t o c k m a r k e t i s e s t i m a t e d a t a b o u t $ 5 1 t r i l l i on .T he w o r ld d e r iv a t iv e s m ar ke t h as b ee n e s t im a t ed a t a b o u t $ 4 8 0t r i l l io n f a c e o r n o m i n a l v a l u e , 1 2 t i me s t h e s i z e o f t h e e n t i r e w o r l de c o n om y . I t m u s t b e n o t e d t h o u g h t h a t t h e v a l u e o f t h e d e r i v a t i v e s
m a r ke t , b e c a u s e i t i s s t a t e d i n t e r ms o f n o t i o n a l v a l u e s , a n d c a n n o tb e d i r ec t l y c o m p a re d t o a s t o ck o r a f i x ed i n c o me s e c ur i t y , w h i c ht r a d i t i o n a l ly r e f e r s t o a n a c t u a l
v a l u e . M a n y s u c h r e l a t i v e l y i l l i q u i d s e c u r i t i e s a r e v a l u e d a s m a r k e dt o m o d e l , r a t h e r t h a n a n a c t u a l m a r k e t p r i c e .
http://en.wikipedia.org/wiki/Bombay_Stock_Exchangehttp://en.wikipedia.org/wiki/Indiahttp://en.wikipedia.org/wiki/Stock_Exchangehttp://en.wikipedia.org/wiki/Mumbaihttp://en.wikipedia.org/wiki/Indiahttp://en.wikipedia.org/wiki/Chief_Executive_Officerhttp://en.wikipedia.org/wiki/INRhttp://en.wikipedia.org/wiki/Market_capitalizationhttp://en.wikipedia.org/wiki/US$http://en.wikipedia.org/wiki/BSE_Sensexhttp://en.wikipedia.org/wiki/Websitehttp://en.wikipedia.org/wiki/Market_systemhttp://en.wikipedia.org/wiki/Tradehttp://en.wikipedia.org/wiki/Corporationhttp://en.wikipedia.org/wiki/Stockhttp://en.wikipedia.org/wiki/Derivative_(finance)http://en.wikipedia.org/wiki/Security_(finance)http://en.wikipedia.org/wiki/Stock_exchangehttp://en.wikipedia.org/wiki/Notional_amounthttp://en.wikipedia.org/wiki/Actual_cash_valuehttp://en.wikipedia.org/wiki/Actual_cash_valuehttp://en.wikipedia.org/wiki/Mark_to_modelhttp://en.wikipedia.org/wiki/Mark_to_modelhttp://en.wikipedia.org/wiki/Bombay_Stock_Exchangehttp://en.wikipedia.org/wiki/Indiahttp://en.wikipedia.org/wiki/Stock_Exchangehttp://en.wikipedia.org/wiki/Mumbaihttp://en.wikipedia.org/wiki/Indiahttp://en.wikipedia.org/wiki/Chief_Executive_Officerhttp://en.wikipedia.org/wiki/INRhttp://en.wikipedia.org/wiki/Market_capitalizationhttp://en.wikipedia.org/wiki/US$http://en.wikipedia.org/wiki/BSE_Sensexhttp://en.wikipedia.org/wiki/Websitehttp://en.wikipedia.org/wiki/Market_systemhttp://en.wikipedia.org/wiki/Tradehttp://en.wikipedia.org/wiki/Corporationhttp://en.wikipedia.org/wiki/Stockhttp://en.wikipedia.org/wiki/Derivative_(finance)http://en.wikipedia.org/wiki/Security_(finance)http://en.wikipedia.org/wiki/Stock_exchangehttp://en.wikipedia.org/wiki/Notional_amounthttp://en.wikipedia.org/wiki/Actual_cash_valuehttp://en.wikipedia.org/wiki/Actual_cash_valuehttp://en.wikipedia.org/wiki/Mark_to_modelhttp://en.wikipedia.org/wiki/Mark_to_model -
8/6/2019 -Share Market & Financial System-jntu Format
4/73
The stocks are listed and traded on stock exchanges which are entities a corporation or mutual
organization specialized in the business of bringing buyers and sellers of stocks and securities
together. The stock market in the United States includes the trading of all securities listed on the
NYSE, theNASDAQ, the Amex, as well as on the many regional exchanges, e.g. OTCBB and
Pink Sheets. European examples of stock exchanges include the London Stock Exchange, the
Deutsche Borse and the Paris Bourse.
R E S E A R C H O B J E C T I V E
S T A T E M E N T O F P R O B L E M
Are people really getting benefits from the various predictions being made by the analysis?
Objective of the research project
To understand the importance of economic analysis of firm as a producing unit
To learn the role of money, and banking system.
To understand the function of financial system.
To understand the financial, money and capital market.
To explain stock exchange. To explain analysis of equity data.
To review the concept and technique of price and trend analysis
To asses the advantage and disadvantage of stock prediction
If possible to design how stock prediction technique.
To make the people move aware about market
http://en.wikipedia.org/wiki/New_York_Stock_Exchangehttp://en.wikipedia.org/wiki/NASDAQhttp://en.wikipedia.org/wiki/American_Stock_Exchangehttp://en.wikipedia.org/wiki/OTC_Bulletin_Boardhttp://en.wikipedia.org/wiki/London_Stock_Exchangehttp://en.wikipedia.org/wiki/Deutsche_Borsehttp://en.wikipedia.org/wiki/Paris_Boursehttp://en.wikipedia.org/wiki/New_York_Stock_Exchangehttp://en.wikipedia.org/wiki/NASDAQhttp://en.wikipedia.org/wiki/American_Stock_Exchangehttp://en.wikipedia.org/wiki/OTC_Bulletin_Boardhttp://en.wikipedia.org/wiki/London_Stock_Exchangehttp://en.wikipedia.org/wiki/Deutsche_Borsehttp://en.wikipedia.org/wiki/Paris_Bourse -
8/6/2019 -Share Market & Financial System-jntu Format
5/73
L I M I T A T I O N O F S T U D Y
1 . l o t o f e f f o r t s h a v e b e e n u n d e rg o n e t o i m p r ov e t h e p r e d i ca t i on
t e ch n iq u es . l ik e e a r l i e r t h er e w a s o n ly f u nd a me n ta l a n al y s i s
b e i n g u s e d b u t n o w t e c h n i c a l a n a l y s i s h a s c o m e i n t o e x i s t e n c e2 . O nc e t he p eo p l e w ho a re i nv o l ve d i n i t . T he y p la y i t l ik e
g a m b l i n g a n d t h e y t h i nk t h a t i t s s a m e i t i s d i f f i cu l t t o c h a n ge
t h e i r m i n d s e t .
3 . I t s d i f f i c u l t to m a k e p e o p le a w a r e a b o u t t h e ma r k e t k n o w l e d g e
i t i s v e r y v a s t .
4 . L a s t o f t e c h ni c a l t h i ng a r e i n v o l v e d i n i t d i f f i c u l t f o r e v e ry o n e
t o g o t h r o u g h i t .
-
8/6/2019 -Share Market & Financial System-jntu Format
6/73
CHAPTER- 2
RESEARCH METHODOLOGY
-
8/6/2019 -Share Market & Financial System-jntu Format
7/73
RESEARCH METHODOLOGY AND LIMITATION
RESEARCH DESIGN
Problem is complex and real in nature, lot of efforts have undergone for the research by meeting
various people and asking them about their experience .various people have undergone huge
losses in the stock market lot of material has been collected from the internet.
The research methodology consisted following steps:
1. DEFINING THE OBJECTIVES:
The aim of this project as has already been mentioned was to sales and analysis of mutual
funds. For this our research contains two parts-
a. To sale the products we have to first generate database on the basis of marketing
research.
b. Analysis of different schemes of share market.
2. DEVELOPING THE RESEARCH PLAN:
This step called for decision on the data sources, sampling plan and contact methods.
DATA SOURCES
Data was collected from primary and secondary data. The various sources are:
i. PRIMARY DATA
This type of data does not exist; it is originated by primary sources like personal interaction or
field back forms, questionnaires that act as tools for collecting data.
ii. SECONDARY DATA
-
8/6/2019 -Share Market & Financial System-jntu Format
8/73
This type of data already exists, and used to generate information as required. We collect the
secondary data through Internet, books, journals and magazines of the company, various
company broachers, talking with people.
RESEARCH APPROACH
The research approach adopted here was the survey method. But other approaches also used such
as observation research.
3. COLLECTING THE INFORMATION
With respect to primary and secondary data, the information is collected. Primary data tells us
present scenario of financial market. Secondary data means that to get the data from the internet,
company magazines, talking with people and convince.
DATA COLLECTION:
Base on the above questionnaire data are collected by survey methods.
1. SAMPLING METHOD:
The sampling method, which is adopted, is Random Sampling.
2. DATA ANALYSIS:
3. The Analysis of survey has been done on % basis.
DATA COLLECTION
PRIMARY DATA
-
8/6/2019 -Share Market & Financial System-jntu Format
9/73
The primary data to be selected was based upon the response of the respondents to the
questionnaire designed. The questionnaire designed was given to us from our immediate boss...
The questionnaire consists of closed ended questions.
A part of Questionnaire was targeted to know the personal details of the respondents. Another
part comprised of the self-designed questionnaire and will consist of closed ended questions with
every question having its own importance and meaning.
SECONDARY DATA
The secondary data was collected by referring through web sites, and the final data was analyzed
systematically to achieve the desired result.
DATA ANALYSIS
For analyzing the data obtained after conducting the survey, percentage method was used. All the
views and data obtained were also interpreted as clearly as possible.
STUDY
The present investigation is a descriptive and marketing type of study undertaken to estimate the
comparative study of share market analysis. The present study identifies views of customers &
analysis of share market along with the self-analysis.
SAMPLE SIZE
For the purpose of analysis a sample size of respondents was selected. The target group of the
respondent was job holders and an earning person whatever his/her age may be. The sample size
taken was 60.
SAMPLING METHOD
-
8/6/2019 -Share Market & Financial System-jntu Format
10/73
The sampling method chosen for the project was Random Sampling. This type of sampling is
also known as chance sampling or probability sampling where each and every item in the
population has an equal chance of inclusion in the sample and each one of the possible samples.
This procedure gives each item an equal probability of being selected.
-
8/6/2019 -Share Market & Financial System-jntu Format
11/73
CHAPTER 3
INDUSTRY PROFILE
-
8/6/2019 -Share Market & Financial System-jntu Format
12/73
3.1 HISTORY OF STOCK EXCHANGE
The only stock exchanges operating in the 19 th century were those of Bombay set up in
1876 and Ahmedabad set up in 1894. These were organized as voluntary non profit-making
association of brokers to regulate and protect their interests. Before the control on securities
trading became central subject under the constitution in 1960, it was a state subject and the
Bombay securities contracts (control) Act of 1926 used to regulate trading in securities. Under
this act, the Bombay stock exchange was recognized in 1927 and Ahmedbad in 1937.
During the war boom, a number of stock exchanges were organized in Bombay,
Ahmedbad and other centers, but they were not recognized. Soon after it became a central
subject, central legislation was proposed and a committee headed by A.D. Gorwala went into the
bill for securities regulation. On the basis of the committees recommendations and public
discussion, the securities contracts (regulation) Act became law in 1966.
DEFINITION OF STOCK EXCHANGE
Stock exchange means any body or individuals whether incorporated or not, constituted
for the purpose of assisting, regulating or controlling the business of buying, selling or dealing in
securities.
It is an association of member brokers for the purpose of self-regulation and protecting
the interests of its members.
It can operate only if it is recognized by the Government under the securities contracts
(regulation) Act, 1966. The recognition is granted under section 3 of the Act by the central
government, Ministry of Finance.
BYLAWS
-
8/6/2019 -Share Market & Financial System-jntu Format
13/73
Besides the above act, the securities contracts (regulation) rules were also made in 1976
to regulative certain matters of trading on the stock exchanges. There are also bylaws of the
exchanges, which are concerned with the following subjects.
Opening / closing of the stock exchanges, timing of trading, regulation of blank transfers,
regulation of Badla or carryover business, control of the settlement and other activities of the
stock exchange, fixating of margin, fixation of market prices or making up prices, regulation of
taravani business (jobbing), etc., regulation of brokers trading, brokerage chargers, trading rules
on the exchange, arbitrage and settlement of disputes, settlement and clearing of the trading etc.
3.2 REGULATION OF STOCK EXCHANGES
The securities contracts (regulation) act is the basis for operations of the stock exchanges
in India. No exchange can operate legally without the government permission or recognition.
Stock exchanges are given monopoly in certain areas under section 19 of the above Act to ensure
that the control and regulation are facilitated. Recognition can be granted to a stock exchange
provided certain conditions are satisfied and the necessary information is supplied to the
government. Recognition can also be withdrawn, if necessary. Where there are no stock
exchanges, the government licenses some of the brokers to perform the functions of a stock
exchange in its absence.
3.3 SECURITIES AND EXCHANGE BOARD OF INDIA (SEBI).
SEBI was set up as an autonomous regulatory authority by the government of India in 1988 to
protect the interests of investors in securities and to promote the development of, and to regulate
the securities market and for matter connected therewith or incidental thereto. It is empowered
by two acts namely the SEBI Act, 1992 and the securities contract (regulation) Act, 1966 to
perform the function of protecting investors rights and regulating the capital markets.
3.4BOMBAY STOCK EXCHANGE
-
8/6/2019 -Share Market & Financial System-jntu Format
14/73
This stock exchange, Mumbai, popularly known as BSE was established in 1876
as The Native share and stock brokers association, as a voluntary non-profit making
association. It has an evolved over the years into its present status as the premiere stock
exchange in the country. It may be noted that the stock exchanges the oldest one in Asia, even
older than the Tokyo stock exchange, which was founded in 1878.
The exchange, while providing an efficient and transparent market for trading in
securities, upholds the interests of the investors and ensures redressed of their grievances,
whether against the companies or its own member brokers. It also strives to educate and
enlighten the investors by making available necessary informative inputs and conducting
investor education programs.
A governing board comprising of 9 elected directors, 2 SEBI nominees, 7 public
representatives and an executive director is the apex body, which decides is the apex body,
which decides the policies and regulates the affairs of the exchange.
The Exchange director as the chief executive offices is responsible for the daily today
administration of the exchange.
BSE INDICES :
In order to enable the market participants, analysts etc., to track the various ups and
downs in the Indian stock market, the Exchange has introduced in 1986 an equity stock index
called BSE-SENSEX that subsequently became the barometer of the moments of the share prices
in the Indian stock market. It is a Market capitalization weighted index of 30 component stocks
representing a sample of large, well-established and leading companies. The base year of sensex
1978-79. The Sensex is widely reported in both domestic and international markets through print
as well as electronic media.
Sensex is calculated using a market capitalization weighted method. As per this
methodology the level of the index reflects the total market value of all 30-component stocks
from different industries related to particular base period. The total market value of a company is
-
8/6/2019 -Share Market & Financial System-jntu Format
15/73
determined by multiplying the price of its stock by the nu7mber of shared outstanding.
Statisticians call index of a set of combined variables (such as price and number of shares) a
composite Index. An indexed number is used to represent the results of this calcution in order to
make the value easier to go work with and track over a time. It is much easier to graph a chart
based on Indexed values than on based on actual valued world over majority of the well-known
Indices are constructed using Market capitalization weighted method.
In practice, the daily calculation of SENSEX is done by dividing the aggregate market
value of the 30 companies in the index by a number called the Index Divisor. The divisor is the
only link to the original base period value of the SENSEX. The Devisor keeps the Index
comparable over a period value of time and if the references point for the entire Index
maintenance adjustments. SENSEX is widely used to describe the mood in the Indian stock
markets. Base year average is changed as per the formula new base year average = old base year
average*(new market value / old market value).
3.5 NATIONAL STOCK EXCHANGE
The NSE was incorporated in Nov, 1992 with an equity capital of Rs.26 crs. Theinternational securities consultancy (ISC) of Hong Kong has helped in setting up NSE. ISC hasprepared the detailed business plans and initialization of hardware and software systems. Thepromotions for NSE were financial institutions, insurances, companies, banks and SEBI capitalmarket ltd, Infrastructure leasing and financial services ltd and stock holding corporations ltd.
It has been set up to strengthen the move towards professionalisation of the capital
market as well as provide nation wide securities trading facilities to investors.
NSE is not an exchange in the traditional sense where brokers own and manage the
exchange. A two tier administrative set up involving a company board and a governing aboard of
the exchange is envisaged.
NSE is a national market for shares PSU bonds, debentures and government securities
since infrastructure and trading facilities are provided.
-
8/6/2019 -Share Market & Financial System-jntu Format
16/73
NSE-NIFTY:
The NSE on Apr22, 1996 launched a new equity Index. The NSE-60. The new Index
which replaces the existing NSE-100 Index is expected to serve as an appropriate Index for the
new segment of future and option.
NIFTY mean National Index for fifty stocks. The NSE-60 comprises fifty companies that
represent 20 board industry groups with an aggregate market capitalization of around Rs 1,
70,000 crs. All companies included in the Index have a market capitalization in excess of Rs. 600
crs each and should have trade for 86% of trading days at an impact cost of less than 1.6%.
The base period for the index is the close of price on Nov 3 1996, which makes one year
of completion of operation of NSEs capital market segment. The base value of the index has
been set at 1000.
-
8/6/2019 -Share Market & Financial System-jntu Format
17/73
NSE-MIDCAP INDEX
The NSE madcap index or the junior nifty comprises 60 stocks that represent 21st boardindustry groups and will provide proper representation of the midcap segment of the Indian
capital market. All stocks in the Index should have market capitalization of grate than Rs.200 crsand should have traded 86% of the trading days at an impact cost of less than 2.6%.
The base period for the index is Nov 4 1996, which signifies 2 years for completion ofoperations of the capital market segment of the operations. The base value of the Index has beenset at 1000.
Average daily turn over of the present scenario 268212 (Laces) and number of averagedaily trades 2160(Laces).
At present there are 24 stock exchanges recognized under the securities contract
(regulation Act, 1966. They are
Ahmedbad Stock ExchangeBangalore Stock ExchangeBhubaneswar Stock ExchangeCalcutta Stock ExchangeCochin Stock ExchangeCoimbatore Stock ExchangeDelhi Stock ExchangeGuwahati Stock ExchangeHyderabad Stock ExchangeIndore Stock ExchangeJaipur Stock ExchangeKanpur Stock ExchangeLudhiana Sock ExchangeMadras Stock ExchangeMagadh Stock ExchangeMangalore Stock ExchangePune Stock ExchangeUttar Pradesh Exchange Assoc ltdSaurashtra Sock ExchangeVadodhara Stock ExchangeNSEOTCEIInter connected Stock Exchange
PROFILE OF BROKING HOUSE IN THE STOCK MARKET
-
8/6/2019 -Share Market & Financial System-jntu Format
18/73
K O T A K S E C U R I T I E S :
Kotak securities ltd is India leading stock broking house with a market share of close to 9% as on 31
march 2007. kotak securities ltd has been the largest in IPO distribution.
The company has a full fledged research division involved in macro economic studies sect oral research
and company specific equity research combined with a strong and well networked sales force which helps
deliver current and up to date market information and news
Kotak securities ltd is also a depository participant with national securities depository limited and central
depository service limited .providing dual benefits services where in the investor can use the brokerage
services of the company for executing the transactions and the depository service for settling them.
Kotak securities have 813 outlets servicing more than 315000 customers and a coverage of 277 cities.
Kotak securities com the online division of kotak securities limited offers internet broking services and
also online IPO and mutual fund investment
A Kotak security limited manages assets around 2300 crores of assets under management. The portfolio
management service provides top class service catering to the high end of the market. Portfolio
management from kotak securities comes as an answer to those who would like to grow from
exponentially on the crest of the stock market, with the backing of an expert.
-
8/6/2019 -Share Market & Financial System-jntu Format
19/73
Sharekhan, the retail broking arm of SSKI group and one of the largest stock broking house in the country
has won the prestigious awaaz consumer vote awards 2005 for the most preferred stock broking brand in
India, in the investment advisors category
Share khan equity related services include trade execution on BSE,NSE derivatives commodities
depository services online trading and investment advice ,.sharekhan online trading and investment site
www.sharekhan.com was launched in 2000 . Sharekhan Bag round network includes over 250 centres
across 123 cities in India and having around 120000 customers and equal number of demat customers.
Sharekhan won the award by vote of customer around the country, as part of India largest consumer studycover 7000 respondents 21 product and service across 21 major cities. the study initiated by awaaz India
first dedicated consumer channel and member of the world wide CNBC network and ac Nielsen org marg
was aimed at understanding the brand preference of the consumer and to decipher what are the most
important loyalty criteria for the consumer in each vertical
http://www.sharekhan.com/http://www.sharekhan.com/ -
8/6/2019 -Share Market & Financial System-jntu Format
20/73
In order to select the award recipient spontaneous responses rather than prompted responses were
garnered with an intention to glean unbiased preferences.
The reason behind the preferences for brands were unveiled by examines the following:
Tangible features of product /service
Softer, intangible features like imagery, equity driving preference
Tactical measures such as promotional /pricing schemes
ABOUT THE COMPANY
S h a r e K h a n L i m i t e d , a f l a g s h i p b r o k i n g f i r m i n t h e s h a r e m a r k e t ,i s s t r u c t u r e d i n t o s t r a t e g i c b u s i n e s s e s E q u i t i e s , S h a r e ,C o m mo d i t i e s a n d M u t u al f u n d s a r e i n t h i s f i r m . T h e h e a d o f f i c e o f
S h a r e K h a n i s i n t h e M u m b a i , t h i s i s o n e o f t h e b r a n c h e s i n t h e P u n e .T h i s i s o n l y S h a r e a n d E q u i t y b r o k i n g f i r m i n I n d i a . T h i s i s n o t o n l yS h a r e b u t b u l k o f t h e c o m m o d i t i e s , M u t u a l f u n d s . S h a r e k h a n g i v e t om o re i n fo r ma t io n h o w t o i n ve s t i n t h e s h ar e m a rk e t , w h ic h t y p e sm o r e e a r n m o n e y i n t h e t h r o u g h t h e s h a r e m a r k e t .
E s t ab l i sh ed i n 1 95 8 , S ha re K ha n c om mi ss io ne d i t s s ha re s a nd
-
8/6/2019 -Share Market & Financial System-jntu Format
21/73
e q u i t i e s a t S a t a r a R o a d , P u n e i n 1 9 6 2 a n d h a s t o d a y g r o w n t o b e c o m et h e c o u n tr y s l a r g e s t i n t eg r a te d s h a re t r a ns f e r a n d r a n k s a m o n g t h et o p q u ar t i l e o f l o w b r o k in g i n t r a d a y a n d d e l i v er y c h a r g es i n t h ew o r l d .
W i th a s t r at e g ic i n t en t t o a c h i e v e v e r t i c a l i n t e g ra t i on i n t h e s h a r e b u s i n e s s , S h a r e K h a n a c q u i r e d t w o c a p t i v e m a r k e t s i n N i f t y , B S E a n dNSE.
MEANS OF FINANCING
Financing a company through the sale of stock in a company is known as equity financing.
Alternatively, debt financing (for example issuing bonds) can be done to avoid giving up shares of
ownership of the company. Unofficial financing known as trade financing usually provides the major part
of a company's working capital (day-to-day operational needs). Trade financing is provided by vendors
and suppliers who sell their products to the company at short-term, unsecured credit terms, usually 30
days. Equity and debt financing are usually used for longer-term investment projects such as investments
in a new factory or a new foreign market. Customer provided financing exists when a customer pays for
services before they are delivered, e.g. subscriptions and insurance
MARKET SHARE ANALYSIS
http://wiki/Ownership_equityhttp://wiki/Debthttp://wiki/Bond_(finance)http://w/index.php?title=Trade_financing&action=edit&redlink=1http://wiki/Working_capitalhttp://wiki/Ownership_equityhttp://wiki/Debthttp://wiki/Bond_(finance)http://w/index.php?title=Trade_financing&action=edit&redlink=1http://wiki/Working_capital -
8/6/2019 -Share Market & Financial System-jntu Format
22/73
OTHER BENEFITS OF INVESTING IN SHARES?
Because they can make big money on it. Compared to your investments in fixed deposits in banks it
makes more profits, but the bad news is that you are also expected to bear the losses, if any.
1 ) P o s s i b i l i t y o f h i g h r e t u r n s
2 ) E a s y l i q u i d i t y 3 ) U n b e a t a b l e t a x b e n e f i t s
4 ) I n c o m e f r o m d i v i d e n d s
SO HOW DOES ONE BUY SHARES?
. T h e r e a r e b a s i c a l l y t w o w a y s i n w h i c h y o u c a n i n v e s t i n s h a r e s :
Purchase shares fromThe primary market
(I.e. IPO's)
-
8/6/2019 -Share Market & Financial System-jntu Format
23/73
Trade in theSecondary
Market, i.e.
Stock exchanges
T h e y a r e s e l e c t e d b y t h e I n d e x c o m m i t t e e .
S o m e o f t h e c r i t e r i a t h e y f o l l o w i n c l u d e :
1 ) M a r k e t c a p i t a l i z a t i o n .
2 ) L i q u i d i t y .
3 ) C o n t i n u i t y .
4 ) I n d u s t r y r e p r e s e n t a t io n .
5) Listed history
-
8/6/2019 -Share Market & Financial System-jntu Format
24/73
COMPUTATION OF STOCK INDEX:
A stock market may either be a price index or a wealth index. In India most of the indices are
using wealth index for computation of stock market.
Company No. of
shares
Market Price on
09/02/06
Market cap
(Rs.)
Market Price on
18/02/06
Market cap
(Rs.)
TATA 10 20/- 200/- 30/- 300/-
INFOSYS 20 30/- 600/- 40/- 800/-
IBM 20 100/- 2000/- 150/- 3000/-
-
8/6/2019 -Share Market & Financial System-jntu Format
25/73
TOTAL
MARKET
CAP
2800/- 4100/-
Face value=Rs.10/-
Base value=100/-
Index present value=
(100*4100)/2800= 146.428
T h e I n di a I n fo l in e g r ou p , c o mp r is i ng t h e h o ld i ng c o mp a ny , I n di aI n fo l in e L i m i te d a n d i t s w h o l l y - ow n ed s u bs i d i a r i e s , s t r a dd l e t h ee n t i r e f i n an c i a l s e r v ic e s s p a c e w i t h o f f er i n gs r a n g in g f r o m E q u i t yr e se a rc h , E q ui t i e s a n d d e r i v a t i v e s t r a d in g , C o mm o di t i e s t r a d in g ,P o r t f o l i o M a n a g e m e n t S e r v i c e s , M u t u a l F u n d s , L i f e I n s u r a n c e , F i x e dd e po s i t s , G o I b o nd s a n d o t he r s m al l s a vi n gs i n s t r um e nt s t o l o an p r o d u c t s a n d I nv e s t m en t b a n k i ng . I n d i a I n f o l in e a l s o o w n s a n d
m a n a g e s t h e w e b s i t e s h t t p : / / w w w . i n d i a i n f o l i n e . c o m /a n dh t t p : / / w w w . 5 p a i s a . c o m /
T h e c o m p a n y h a s a n e t w o r k o f 7 5 8 b u s i n e s s l o c a t i o n s ( b ra n c h e s a n ds u b- b ro k er s ) s p r e ad a c ro s s 3 4 6 c i t i e s a n d t o wn s . I t h a s m o re t h an8 0 0 , 0 0 0 c u s t o m e r s
I n d i a I n f o l i n e L i m i t e d i s l i s t e d o n b o t h t h e l e a d i n g s t o c k e x c h a n g e si n I n d i a , v i z . t h e S t o c k E x c h a n g e , M u m b a i ( B S E ) a n d t h e N a t i o n alS t o c k E x c h a ng e ( N S E ) a n d i s a l s o a m e m b er o f b o t h t h e e x c h a n g e s .I t i s e n g a g e d i n t h e b u s i n e s s e s o f E q u i t i e s b r o k i n g , W e a l t h A d v i s o r y
S e r v i ce s a n d P o r t f o l io M a n ag e m en t S e r v i ce s . I t o f f e r s b r o k i ngs e r v i c e s i n t h e C a s h a n d D e r i v a t i v e s s e g m e n t s o f t h e N S E a s w e l l a st h e C a s h s e g m e n t o f t h e B S E . I t i s r e g i s t e re d w i t h N S D L a s w e l l a sC D S L a s a d e p o s i t o r y p a r t i c i p a n t , p r o v i d i n g a o n e - s t o p s o l u t i o n f o r c l i en t s t r a d i n g i n t h e e q u i t i es m a r ke t . I t h a s r e c e n t ly l a u n ch e d i t sI n v e s t m e n t b a n k i n g a n d I n s t i t u t i o n a l B r o k i n g b u s i n e s s .
http://www.indiainfoline.com/http://www.5paisa.com/http://www.indiainfoline.com/http://www.5paisa.com/ -
8/6/2019 -Share Market & Financial System-jntu Format
26/73
B o na n za i s a l ea d in g F i na n ci a l S e rv i ce s & B r ok e ra g e H o us e w i tha c k n o w l e d g e d i n d u s t r y L e a d e r s h i p i n e x e c u t i o n a n d c l e a r i n g s e r v i c e so n E x c h a n g e T r a d e d D e r i v a t i v e s a n d c a s h m a r k e t p r o d u c t s .
K e y e l em e nt s t h at p l ac e B o na n za a m on g s t t h e l e ad i ng B r ok e ra g eH o u s es a n d m a k e i t t h e p r e fe r r ed s e r v ic e p r o v i d e r f o r v a l u e b a s e df i n a n c i a l s e r v i c e s a r e :
A Client-driven foundation and strategy committed to client-specific investment needs
and objectives. Integrated and innovative use of Technology enabling clients to trade offline,online and
Strategic tie-ups with latest technology partners to facilitate trading access and directprocessing across more than 900 Branches spread over 310 cities .
Client-focused philosophy backed by memberships of all principal Indian Stock andCommodity Exchanges makes Bonanza a preferred service provider in the Industry forvalue based services.
-
8/6/2019 -Share Market & Financial System-jntu Format
27/73
B o n a n z a c o n f i d e n t l y s t e e r s y o u t h r o u g h a c h a l l e n g i n g F i n a n c i a l a n dT r a d e M a r k e t e v e r y m o m e n t , w h e t h e r y o u a r e p r e s e n t o r n o t !
EQUITY
B e in g a m e mb e r o f t h e N a t i o na l S t oc k E x ch a ng e ( N SE ) , B o mb a yS t o c k E x c h a n g e ( B S E ) a n d d e a l e r w i t h O v e r t h e C o u n t e r E x c h a n g e o f I n d i a ( O T C E I ) w e h a n d l e y o u r t r a d i n g n e e d s , t h r o u g h a n e t w o r k o f e x p e r i e n c e d d e a l e r s a c r o s s t h e c o u n t r y , a n d t h r o u g h o u r c o m p r e h e n s i v e w e b s i t e .
US The Karvy group was formed in 1983 at Hyderabad, India. Karvy ranks among the top player in
almost all the fields it operates. Karvy Computershare Limited is Indias largest Registrar and Transfer
Agent with a client base of nearly 500 blue chip corporates, managing over 2 crore accounts. Karvy Stock
Brokers Limited, member of National Stock Exchange of India and the Bombay Stock Exchange, ranks
among the top 5 stock brokers in India. With over 6,00,000 active accounts, it ranks among the top 5
Depositary Participant in India, registered with NSDL and CDSL. Karvy Comtrade, Member of NCDEXand MCX ranks among the top 3 commodity brokers in the country. Karvy Insurance Brokers is
registered as a Broker with IRDA and ranks among the top 5 insurance agent in the country. Registered
with AMFI as a corporate Agent, Karvy is also among the top Mutual Fund mobilizer with over Rs. 5,000
crores under management. Karvy Realty Services, which started in 2006, has quickly established itself as
a broker who adds value, in the realty sector. Karvy Global offers niche off shoring services to clients in
the US.
Karvy has 575 offices over 375 locations across India and overseas at Dubai and New York. Over 9,000
highly qualified people staff Karvy.
-
8/6/2019 -Share Market & Financial System-jntu Format
28/73
-
8/6/2019 -Share Market & Financial System-jntu Format
29/73
OUR VALUES
T o b e f a i r , e m p a t h e t i c a n d r e s p o n s i v e i n s e r v i n g o u r c u s t o m e r s
T o r e sp e c t a n d r e in f or c e o u r f e l l ow e m pl o ye e s a n d t h e p o w e r o f t e a m w o r k
T o s t r i v e r e l e n t l e s s ly t o i m p r o v e w h a t w e d o a n d h o w w e d o i t .
T o a l w a y s e a r n a n d b e w o r t h y o f o u r c u s t o m e r ' s t r u s t
THE JOURNEY
Emkays institutional clientele includes some of the largest players in the Fund Management business. A
partial list is provided below.
1. Birla Sun life Mutual Fund2. Deutsche Asset Mgt (India) Pvt. Ltd3. Franklin Templeton Mutual Fund4. HDFC Standard Life Mutual Fund5. Prudential ICICI Mutual Fund6. TATA Mutual Fund
Emkay has considerable strength and Domain Knowledge in the booming Derivatives market
1. The first Sensex Futures Contract was executed by Emkay on June 09, 2000.2. Mr... Prakash Kacholia, Director of Emkay was a member of the first Governing council on
derivatives segment of BSE.3. He has been the moving spirit behind Indias first EXCHANGE TRADED FUND named SPICE
based on the BSE SENSEX launched by Prudential ICICI MF
-
8/6/2019 -Share Market & Financial System-jntu Format
30/73
COMMODITY FUTURES TRADING THROUGH:
C O M M O D I T Y M A R K E T
I n di a h a s a d e ep i n gr a in e d k n ow l ed g e i n c o mm o di t yt r a d i n g ( a n d p a r t i c u l a r l y f o r w a r d t r a d i n g i nc o m m o d i t i e s ) , e s p e c i a l l y i n t h e i n t e r i o r h e a r t l a n d . F o r l a s t 4 0 y e a r s o r s o , s u c h f o r w a r d ( f u t u r e s ) t r a d i n g w a sb a n n e d i n t h e c o u n t r y f o r a v a r i e t y o f r e a s o n s a n d i t i s b ei ng r e vi v ed n ow . T he b an h as m ea nt t h a t t w og e n e r a t i o n s h a v e l o s t t o u c h w i t h t h e t r a d i n g s k i l l s a n dt h e r e l a t e d k n o w l e d g e l e v e l s i n t h e c o m mo d i ty s p a c e.F o r t u na t e l y m u ch o f t h e s k i l l s e ts h a ve m i g r a t e d t o
s t o c k e x c h a n g e s .
I n t h es e i n te r ve n in g y e ar s , s o me r e gi o na l e x ch a ng e ss p e c ia l i z i n g i n s p e ci f i c c o m m od i t i e s , w h e re t h e b a n sw er e l i f te d , h av e c ar r i ed o n t he b a t on . A ls o l a r gei n f o r m a l t r a d i n g , p r i m a r i l y b y t h e s p e c u l a t i v e s e g m e n to f t h e u n iv e r s e o f m a rk e t p a r t i c i pa n t s h a s r e ma i ne d .T h i s h a s l ed t o a m i n d s e t i n t h e c om mo n m an i n t h ec o u n t r y t h a t c o m m o d i t y e x c h a n g e s a r e p u r e l ys p e c u l a t i v e i n n a t u r e . T h e h e d g i n g a n d p r i c e d i s c o v e r yf u n c t i o n s t h a t t h e y p e r f o r m a r e l a r ge l y i g n o re d t o d ay
b y t h e c r o s s s e c t i o n o f t h e p o p u l a t i o n .
O u r e n d e a v o r i s t o r e a c h t o t h e p r o d u c e rs , e n d - u s e r s ,a n d e v en t h e r e ta i l i n ve s to r s , a t a g r as s r o o t s l e ve l .E du ca t i on a nd a wa re ne ss h as a k ey r o l e t o p la y i na c h i e v i n g t h i s v i s i o n
W H Y C O M M O D I T Y M A R K E T ?
C o mm o di t y d e r i v a t i v e s r e co r ds h i gh v o lu m es i n t h em a r k e t s t h e w o r l d o v e r c o m p a r e d t o e q u i t y d e r i v a t i v e s .
I n a n e r a w h e r e r i s k s t o i n v e s t m e n t s a r e o n t h e r i s e a n dI n d ia b e i n g p r e d o m i na n t ly a n a g r a r i a n e c o n o my , n e e d st o s w i t c h t o c o mm o di t y d e r i v a t i v es t o t o p t h e l i s t o f d e v e l o p e d n a t i o n s .
-
8/6/2019 -Share Market & Financial System-jntu Format
31/73
U N D E R S T A N D I N G T H E C O M M O D I T I E S M A R K E T S
I n di a n m a rk e t s h a ve r e ce n t l y t h ro w n o p en a n e w a v e n u e f o r r e ta i li n ve s to r s a n d t r a d e r s t o p a r t i ci p a t e : c o mm o di t y d e r i v a t i v e s . F o r t h o se w h o w a n t t o d i v e rs i f y t h e i r p o r t f o l i o s b e y o n d s h a re s , b o n d sa n d r e a l e s t a t e , c o m m o d i t i e s i s o n e o f t h e b e s t o p t i o n s .C o m m o d i t i e s a c t u a l l y o f f e r i m m e n s e p o t e n t i a l t o b e c o m e a s e p a r a t ea s s e t c l a s s f o r m a r k e t - s a v v y i n v e s t o r s , a r b i t r a g e u rs a n d s p e c u l a t o r s .C o m m o d i t i e s a r e e a s y t o u n d e r s t a n d a n d a r e b a s e d o n t h ef un da me nt a l s o f d em an d a nd s up p l y . R e t a i l i nv es to r s s ho u l du n d e r s t an d t he r i s ks a nd a dv a n t a g e s o f t r a d i ng i n c o m mo d i t i e s
f u tu r es b e fo r e t ak i ng a l e ap . H i s t or i c a l l y , p r ic e s i n c o mm o di t ie sf u t u r e s h a v e b e e n l e s s v o l a t i l e c o m p a r e d w i t h e q u i t y a n d b o n d s , t h u s p r o v i d i n g a n e f f i c i e n t p o r t f o l i o d i v e r s i f i c a t i o n o p t i o n .
Like any other market, the one for commodity futures plays a valuable role in information pooling and
risk sharing. The market mediates between buyers and sellers of commodities thus making the underlying
market more liquid
Motilal Oswal Securities Ltd. was founded in 1987 as a small sub-broking unit, with just two people
running the show. Focus on customer-first-attitude, ethical and transparent business practices, respect for
professionalism, research-based value investing and implementation of cutting-edge technology has
enabled us to blossom into an almost 2000 member team.
Today we are a well diversified financial services firm offering a range of financial products and services
such as
Wealth Management
Broking & Distribution Commodity Broking
Portfolio Management Services Institutional Equities
Private Equity
Investment Banking Services and Principal Strategies
-
8/6/2019 -Share Market & Financial System-jntu Format
32/73
We have a diversified client base that includes retail customers (including High Net worth Individuals),
mutual funds, foreign institutional investors, financial institutions and corporate clients. We are
headquartered in Mumbai and as of June 30, 2008, had a network spread over 450 cities and towns
comprising 1,496 Business Locations operated by our Business Partners and us. As at June 30, 2008, we
had 486,648 registered customers.
In 2006, the Company placed 9.48% of its equity with two leading private equity investors based out of
the US New Vernon Private Equity Limited and Bessemer Venture Partners.
The company got listed on BSE and NSE on September 9, 2007. The issue which was priced at Rs.825
per share (face value Rs.5 per share) got a overwhelming response and was subscribed 27.18 times in
turbulent market conditions. The issue gave a return of 21% on the date of listing.
As of end of financial year 2008, the group networth was Rs.7 bn and market capitalization as of March
31, 2008 was Rs.19 bn.
For year ended March 2008, the company showed a strong top line growth of 91% to Rs.7 bn as
compared to Rs.3.68 bn, last year. New businesses like investment banking, asset management and fund
based activities have contributed to this growth.
Rs. Crores FY 2007- 08 Growth (YoY)
Total Revenues 701 91%
EBIDTA 270 97%
PAT 156 100%
Credit rating agency Crisil has assigned the highest rating of P1+ to the Companys short-term debt
program.
Shareholding Pattern at on June 30, 2008
As of 30th June, 2008; the total shareholding of the Promoter and Promoter Group stood at 70.37%. Theshareholding of institutions stood at 9.78% and non-institutions at 12.26%.
OUR BUSINESS STREAMS
http://openpopupwindow%28%27/india_map.html','NewWin',0,0,'yes','yes',592,700)http://www.newvernonassociates.com/http://www.newvernonassociates.com/http://www.bvp.com/http://www.bvp.com/http://openpopupwindow%28%27/india_map.html','NewWin',0,0,'yes','yes',592,700)http://www.newvernonassociates.com/http://www.bvp.com/ -
8/6/2019 -Share Market & Financial System-jntu Format
33/73
Our businesses and primary products and services are:
WEALTH MANAGEMENT
Financial planning for individual, family and business wealth creation and management needs. These are
provided to customers through our Wealth Management service called Purple
BROKING & DISTRIBUTION SERVICES
Equity (cash and derivatives)
Commodity broking Portfolio Management Services Distribution of financial products
Financing Depository Services
IPO distribution
We offer these services through our branches, Business Partner locations, the internet and mobile
channels. We also have strategic tie-ups with State Bank of India and IDBI Bank to offer our online
trading platform to its customers.
COMMODITY BROKING
Through Motilal Oswal Commodities Broker (P) Ltd our fully owned subsidiary; we provide commodity
trading facilities and related products and services on MCX and NCDEX. Besides access to the best of
research in the form of Daily Fundamentals & Technical Reports on highly traded commodities, our
clients also get access to our exclusive Customized Trading Advice on both the trading platforms. Weoffer these services through our branches, Business Partner locations, the internet and mobile channels
PORTFOLIO MANAGEMENT SERVICES
http://www.motilaloswal.com/Retail/RetailContents.aspx?ReportID=4C85DF26-14A8-4DCF-AF90-D9368AAE1F74http://www.motilaloswal.com/Retail/RetailContents.aspx?ReportID=4C85DF26-14A8-4DCF-AF90-D9368AAE1F74 -
8/6/2019 -Share Market & Financial System-jntu Format
34/73
Motilal Oswal Portfolio Management Services offer a range of investments solutions through
discretionary services. We at Motilal Oswal have helped create wealth for our customers through our
Portfolio Management Services. Our knowledge of the markets together with our understanding of our
customers and their risk profiles has helped us design a range of portfolio offerings for our clients. These
include theValue PMS,Bulls Eye PMS, Trillion Dollar Opportunityand Focused Portfolio Series I. As ofJune 30th, 2008, the assets under management of our various portfolio schemes stood at Rs.6.92 bn.
Motilal Oswal group has applied to the regulatory bodies for a license to operate as a Domestic Asset
Management Company (Mutual Fund) and we expect to begin operations soon.
INSTITUTIONAL EQUITIES
We offer equity broking services in the cash and derivative segments to institutional clients in India and
overseas. These clients include companies, mutual funds, banks, financial institutions, insurance
companies, and FIIs. As at March 31, 2008, we were empanelled with over 300 institutional clients
including 191 FIIs. We service these clients through dedicated sales teams across different time zones.
I N V E S T M E N T B A N K I N G
We offer financial advisory services relating to mergers and acquisitions (domestic and cross-border),
divestitures, restructurings and spin-offs through Motilal Oswal Investment Advisors Private Ltd.
(MOIAPL)
We also offer capital raising and other investment banking services such as the management of public
offerings, private placements (including qualified institutional placements), rights issues, share buybacks,
open offers/delistings and syndication of debt and equity.
MOIAPL has closed 23 transactions in 2007-08 worth US$ 1.8 billion and had 18 mandates in hand as at
March 31, 2008.
PRIVATE EQUITY
In 2006, our private equity subsidiary, Motilal Oswal Venture Capital Advisors Private Ltd (MOVCAPL)
was appointed as the investment manager and advisor to a private equity fund, India Business Excellence
Fund, which was launched with a target of raising US$100 mn. The fund is aimed at providing growth
http://www.motilaloswal.com/Retail/RetailContents.aspx?ArticleID=e424c05f-9d2a-494e-ba04-27c8a2cf6c7dhttp://www.motilaloswal.com/Retail/RetailContents.aspx?ArticleID=e424c05f-9d2a-494e-ba04-27c8a2cf6c7dhttp://www.motilaloswal.com/Retail/RetailContents.aspx?ArticleID=e424c05f-9d2a-494e-ba04-27c8a2cf6c7dhttp://www.motilaloswal.com/Retail/RetailContents.aspx?ArticleID=1507a912-dded-4ca7-b987-db9295ae213bhttp://www.motilaloswal.com/Retail/RetailContents.aspx?ArticleID=0115fbb7-ead7-4679-8e44-56d281869781http://www.motilaloswal.com/Retail/RetailContents.aspx?ArticleID=0115fbb7-ead7-4679-8e44-56d281869781http://www.motilaloswal.com/Retail/RetailContents.aspx?ArticleID=2295fcb5-3697-4f03-920e-d189fa4bcf47http://www.motilaloswal.com/Retail/RetailContents.aspx?ArticleID=2295fcb5-3697-4f03-920e-d189fa4bcf47http://www.motilaloswal.com/Content.aspx?ReportID=0C2B2131-A6CA-444E-A7A3-C641AFEFB554http://www.motilaloswal.com/Content.aspx?ReportID=96D62435-6C0B-4B34-B665-48051C02C359http://www.motilaloswal.com/Content.aspx?ReportID=56AB8714-FEAC-44D7-93AF-DEA458925D0Ehttp://www.motilaloswal.com/Retail/RetailContents.aspx?ArticleID=e424c05f-9d2a-494e-ba04-27c8a2cf6c7dhttp://www.motilaloswal.com/Retail/RetailContents.aspx?ArticleID=1507a912-dded-4ca7-b987-db9295ae213bhttp://www.motilaloswal.com/Retail/RetailContents.aspx?ArticleID=0115fbb7-ead7-4679-8e44-56d281869781http://www.motilaloswal.com/Retail/RetailContents.aspx?ArticleID=2295fcb5-3697-4f03-920e-d189fa4bcf47http://www.motilaloswal.com/Content.aspx?ReportID=0C2B2131-A6CA-444E-A7A3-C641AFEFB554http://www.motilaloswal.com/Content.aspx?ReportID=96D62435-6C0B-4B34-B665-48051C02C359http://www.motilaloswal.com/Content.aspx?ReportID=56AB8714-FEAC-44D7-93AF-DEA458925D0E -
8/6/2019 -Share Market & Financial System-jntu Format
35/73
capital to small and medium enterprises in India, with investments typically in the range of US$3 mn to
US$7 mn.
MOVCAPL will manage and advise the fund and other private equity funds, which may be raised in the
future. In its final closing, in December 2007, the fund obtained commitments of US$125 mn (Rs.4,875
mn) from investors in India and overseas. The Fund has deployed/ committed $ 58 mn across 8 deals.
MOVCAPL has recently launched an INR 750 crores domestic Real Estate Private Equity Fund called
India Realty Excellence Fund sponsored by Motilal Oswal Financial Services Ltd.
PRINCIPAL STRATEGIES GROUP
For effective management of treasury operations and to capitalize on market opportunities, the Group has
set up a 30 member team which would be responsible for effective deployment of funds into differenttrading and arbitrage strategies.
FOCUS ON RESEARCH
Research is the solid foundation on which Motilal Oswal Securities advice is based. Almost 10% of
revenue is invested on equity research and we hire and train the best resources to become advisors. At
present we have 28 equity analysts researching over 27 sectors. From a fundamental, technical andderivatives research perspective; Motilal Oswal's research reports have received wide coverage in the
media (over a 1000 mentions last year). Our consistent efforts towards quality equity research has
reflected in an increase in the ratings and rankings across various categories in the AsiaMoney Brokers
Poll over the years
Our unique Wealth Creation Study, authored by Mr. Raamdeo Agrawal, Managing Director, is now in its
13th year. Investors keenly await this annual study for the wealth of information it has on the companies
that created wealth during the preceding five years.
S T R O N G M A N A G E M E N T T E A M
T h e o r g a n i z a t i o n f i n d s i t s s t r e n g t h i n i t s t e a m o f y o u n g , t a l e n t e d a n dc o n f id e n t i n d iv i d u a ls . Q u a l i f i e d p r o f es s io n a l s c a r ry o u t d i f fe r e n tf u nc t io n s u n de r t h e a b le l e ad e r s h ip o f i t s p r om o te r s , M r . M o t i l alO sw al a nd M r . R aa md eo A gr aw al . O ur t a l en te d p oo l o f p e o p l e
http://www.motilaloswal.com/Retail/RetailContents.aspx?ReportID=DE09E872-F1C9-44A5-A990-0E11F61CBE6Bhttp://www.motilaloswal.com/Content.aspx?ReportID=00000000-0000-0000-0000-000000003333http://www.motilaloswal.com/Retail/RetailContents.aspx?ReportID=DE09E872-F1C9-44A5-A990-0E11F61CBE6Bhttp://www.motilaloswal.com/Content.aspx?ReportID=00000000-0000-0000-0000-000000003333 -
8/6/2019 -Share Market & Financial System-jntu Format
36/73
c om p ri s es q ua l i f i ed a nd e xp er i e nc ed p ro fe ss io na l s w i th a ne s t a bl i s h ed t r a ck r ec or d . W e b el i e v e t h a t o ur m a na g em e nt ' se n t r e p r e n e u r i a l s p i r i t , s t r o n g t e c h n i c a l e x p e r t i s e , l e a d e r s h i p s k i l l s ,i n s ig h t i n t o m a r k e t / c u s to m e r n e e d s p r o v id e u s w i t h a c o m p et i t iv es t r e n g t h w h i c h w i l l h e l p u s i m p l e m e n t o u r b u s i n e s s
Religare Enterprises Limited (REL), is one of the leading integrated financial services groups of India.
RELs businesses are broadly clubbed across three key verticals, the Retail, Institutional and Wealth
spectrums, catering to a diverse and wide base of clients.
REL offers a multitude of investment options and a diverse bouquet of financial services and has a pan
India reach in more than 1550 locations across more than 460 cities and towns.
As part of its recent initiatives, the group has also started expanding globally and has acquired Londonsoldest brokerage & investment firm, Hichens, Harrison & Co. plc. Following this acquisition Religare
now proposes to operate out of 10 countries. With a view to expand, diversify and introduce offerings
benchmarked against global best practices, Religare has entered into joint ventures with the global major-
Aegon for its Asset Management and Life Insurance businesses in India.
Religares wealth management subsidiary is now rechristened as Religare Macquarie Wealth
Management Limited, following a joint venture with the Australia based financial services major,
Macquarie Bank. Religare has also partnered with Vistaar Entertainment to launch Indias first Film
Fund.
The vision is to build Religare as a globally trusted brand in the financial services domain and present it
as the Investment Gateway of India. All employees of the group guided by an experienced andprofessional management team are committed to providing financial care, backed by the core values of
diligence and transparency.
OUR GROUP STRUCTURE
-
8/6/2019 -Share Market & Financial System-jntu Format
37/73
Religare Enterprises Limited
R e l i g a r e S e c u r i t i e s L i m i t e d -
Equity Broking Portfolio Management Services
Depository
Online Investment Portal Institutional Equity Broking
R e l i g a r e F i n e v e s t L i m i t e d -
L e n d i n g a n d D i s t r i b u t i o n b u s i n e s s
R e l i g a r e C o m m o d i t i e s L i m i t e d
C o m m o d i t y B u s i n e s s
R e l i g a r e I n s u r a n c e B r o k i n g L i m i t e d -
Life and Non Life Insurance
Reinsurance
R e l i g a r e C a p i t a l M a r k e t s L i m i t e d
I n v e s t m e n t B a n k i n g
S E B I R e g i s t e r e d M e r c h a n t B a n k e r
A c q u i s i t i o n i n U K t h r o u g h a n i n t e r n a t i o n a l a r m
R e l i g a r e A r t s I n i t i a t i v e L i m i t e d
A r t F u n d a n d o t h e r b u s i n e s s e s o f A r t
G a l l e r y t o b e l a u n c h e d s o o n
R e l i g a r e R e a l t y L i m i t e d
-
8/6/2019 -Share Market & Financial System-jntu Format
38/73
R e a l E s t a t e M a n a g e m e n t C o m p a n y
R e l i g a r e V e n t u r e C a p i t a l P r i v a t e L i m i t e d
P r i v a t e E q u i t y a n d I n v e s t m e n t M a n a g e r
Religare Macquarie Wealth Management Limited
50: 50 joint ventures with Macquarie for wealth management business
R e l i g a r e A E G O N A M C -
50:50 Joint Venture between REL and Aegon for Asset Management business in India
A E G O N R e l i g a r e L i f e I n s u r a n c e -
Life Insurance Company, Joint Venture between REL, Aegon and BCCL for Life insurance
business in India
E Q U I T Y & D E R I V A T I V E S
T r a d i ng i n E q u i t i e s w i t h R e l ig a r e t ru l y e mp o w e r s y ou f o r y ou r i n ve s t m e nt n ee ds . W e e ns u re y o u h av e a s u pe r l at i v e t r a di n ge x p e r i e n c e t h r o u g h -
http://www.religaresecurities.com/equity_derivatives.asphttp://www.religaresecurities.com/equity_derivatives.asp -
8/6/2019 -Share Market & Financial System-jntu Format
39/73
A highly process driven, diligent approach Powerful Research & Analytics and
One of the best in class dealing rooms
F u r t h e r , R e l i g a r e a l s o h a s o n e o f t h e l a r g e s t r e t a i l n e t w o r k s , w i t h i t s p r e s e n c e i n m o r e t h a n 1 3 0 0 l o c a t i o n s a c r o s s m o r e t h a n 4 0 0 t o w n s &c i t i e s . T h i s m e an s , y o u c a n w a l k i n to a n y o f t h es e b r an c he s a n dc o n n e c t t o o u r h i g h l y s k i l l e d a n d d e d i c a t e d r e l a t i o n s h i p m a n a g e r s t og e t t h e b e s t s e r v i c e s .
H o w w i l l w e m a k e t r a d i n g e a s i e r a n d b e t t e r ?P e r s o n a l A s s i s t a n ce
Dedicated Relationship Managers
Dedicated dealers who facilitate trading and serve your post trade needs
I N V E S T M E N T P H I L O S O P H Y
W e b e l i e ve t h a t o u r i n ve s to r s a r e b e t t e r s e rv e d b y a d i sc i p l i n e di n v e s t m e nt a p p r oa c h , w h i ch c o m b in e s a n u n d e rs t a nd i n g o f t h e g o a l sa n d o b j e c t iv e s o f t h e i n v e s to r w i t h a f i n e t u n e d s t r a te g y b a c k e d b yr e s e a r c h .
S to ck s pe ci f i c s e l ec t i on p ro ce du re b as ed o n f un da me nt a lr e s e a r c h f o r m a k i n g s o u n d i n v e s t m e n t d e c i s i o n s .
F o cu s o n m i n i mi z in g i n ve s tm e nt r i sk b y f o l l o wi n g r i g o ro u s
v a l u a t i o n d i s c i p l i n e s . C a p i t a l p r e s e r v a t i o n .
S e l l i n g d i s c i p l i n e a n d u s e o f D e r i v a t i v e s t o c o n t r o l v o l a t i l i t y .
O v e r a l l t o e n h a n c e a b s o l u t e r e t u r n f o r i n v e s t o r s .
O U R S C H E M E S
P A N T H E R
T he P a n t h e r p o r t f o l io a im s t o a c h i e ve h i g h e r r e t u r ns b y t ak i n ga g g r e s s i v e p o s i t i o n s a c r o s s s e c t o r s a n d m a r k e t c a p i t a l i z a t i o n s . I t i ss u i t a b l e f o r t h e H i g h R i s k H i g h R e t u r n i n v e s t o r w i t h a s t r a t e g y t oi n ve s t a c ro ss s e c t o rs a nd t a k e a dv an ta ge o f v ar i o us m ar ke tc o n d i t i o n s .
T O R T O I S E
-
8/6/2019 -Share Market & Financial System-jntu Format
40/73
T h e T o r t o i s e p o r t f o l i o a i m s t o a c h i e v e g r o w t h i n t h e p o r t f o l i o v a l u eo v e r a p e r i o d o f t i m e b y w a y o f c a r e f u l a n d j u d i c i o u s i n v e s t m e n t i nf u n d am e n ta l l y s o u n d c o m p an i e s h a v i n g g o o d p r o sp e c t s . T h e s c h e mei s s u i t a b l e f o r t h e Me d iu m R i s k M e di u m R e t u rn i n ve s to r w i th as t r a t e g y t o i n v e s t i n c o m p a n i e s w h i c h h a v e c o n s i s t e n c y i n e a r n i n g s ,
g r o w t h a n d f i n a n c i a l p e r f o r m a n c e .
E L E P H A N T
T h e E l e p h a n t p o r t f o l i o a i m s t o g e n e r a t e s t e a d y r e t u r n s o v e r a l o n g e r p e r io d b y i n v e s t i n g i n S e c u r i t i e s s e l ec t e d o n l y f r o m B S E 1 0 0 a n dN S E 1 0 0 i n d e x . T h i s p l a n i s s u i t a b l e f o r t h e L o w R i s k L o w R e t u r n i n v e s t o r w i t h a s t r a t e g y t o i n v e s t i n b l u e c h i p c o m p a n i e s , a s t h e s ec o m p an i e s h a v e s t e ad y p e r f o r m an c e a n d r e d u c e l i q u id i t y r i s k i n t h em a r k e t .
C A T E R P I L L A R
T h e C a t e r p i l l a r p o r t f o l i o a i m s t o a c h i e v e c a p i t a l a p p r e c i a t i o n o v e r al o ng p e r i o d o f t i m e b y i n ve s t i n g i n a d i ve r s i f ie d p o r t f o l i o . T h i ss ch e m e i s s u i t a b l e f o r i nv es t o r s w i t h a h i g h r i s k a pp e t i t e . T h ei n v e s t m e n t s t r a t e g y w o u l d b e t o i n v e s t i n s c r i p s w h i c h a r e p o i s e d t og e t a r e - r a t i n g e i t h e r b e c a u s e o f c h a n g e i n b u s i n e s s , p o t e n t i a l f a n c yf or a p a r t i cu la r s ec to r i n t he c om in g y ea r s /m on th s , b us in es sd i v e rs i f ic a t io n l e a di n g t o a b e t t e r o p e r a t i n g p e r f o r m an c e , s t o ck s i nt h e i r e a r l y s t a g es o f a n u p tu r n o r f o r t h o s e w h ic h a r e i n s e c t o rsc u r r e n t l y i g n o r e d b y t h e m a r k e t .
L E O
L e o i s a i m e d a t r e t a i l c u s t o m e r s a n d s t r u c t u r e d t o p r o v i d e m e d i u m t o
l o ng - te r m c a pi t al a p pr e c i a t i on b y i n ve s t i n g i n s t oc k s a c ro s s t h em a r ke t c a p i t a l iz a t i on r a n g e. T h i s s c h e me i s a m i x o f m o d e ra t e a n da g g r e s s iv e i nv e s tm en t s t r a t eg i e s . I t s a i m i s t o h a v e a b a l an c e d p o r t f o l io c o m p ri s in g s e l ec t e d i n v e s t m e nt s f r o m b o t h T o r to i s e a n dP an th e r . E xp os ur e t o D er iv a t iv es i s t ak en w i t h i n p e r mi ss ib ler e g u l a t o r y l i m i t s .
I N V E S T M E N T B A N K I N G
-
8/6/2019 -Share Market & Financial System-jntu Format
41/73
W e p r o v i de i nn o v a t i v e , i n t eg r a t e d a n d b e s t - f i t s o l u t io n s t o o u r c o r p o r a t e c u s t o m e r s . I t i s o u r c o n t i n u o u s e n d e a v o r t o p r o v i d e v a l u ee n h an c e me n t t h r ou g h d i v e r se f i n a n c i a l s o l u t io n s o n a n o n g o i ng b a s i s , t h r o u g h o f f e r i n g s l i k e C o r p o r a t e D e b t , P r i v a t e E q u i t y , I P O ,E C B , F C C B , G D R / A D R e t c .
I n v e s t m e n t B a n k i n g w i t h R e l i g a r e o f f e r s t h e f o l l o w i n g s e r v i c e s :
C O R P O R A T E F I N A N C E
W e f o c u s o n f i n d i n g r i g h t a n d r e l e v a n t p a r t n e r s f o r o u r c l i e n t s , w h on o t o n l y h e l p i n a d d i n g v a l u e b u t a l s o i m p r ov e t h e f u t ur e v a l u a t io no f t he o r g a n i z a t io n . W e s pe c i a l i z e i n s t r u c t u r e d f i n a n c i ng a n d p r o v i d i n g a d v i s o r y s e r v i c e s r e l a t e d t o f i n a n c i a l p l a n n i n g , m o d e l i n ga n d a d v i s i n g o n f i n a n c i a l r e q u i r e m e n t s .
M E R C H A N T B A N K I N G
I P O / F P O / R I G H T S
M e r g e r s & A c q u i s i t i o n s
C o r p o r a t e A d v i s o r y S e r v i c e s
A D R / G D R / F C C B
BUY BACK OF SHARE
A B O U T I N D I A B U L L S
Indiabulls is Indias leading Financial Services and Real Estate company having over 640 branches all
over India. Indiabulls serves the financial needs of more than 4,50,000 customers with its wide range of
financial services and products from securities, derivatives trading, depositary services, research &
advisory services, consumer secured & unsecured credit, loan against shares and mortgage & housing
finance. With around 4000 Relationship Managers, Indiabulls helps its clients to satisfy their customized
financial goals. Indiabulls through its group companies has entered Indian Real Estate business in 2005. It
is currently evaluating several large-scale projects worth several hundred million dollars.
-
8/6/2019 -Share Market & Financial System-jntu Format
42/73
I n d ia b u l l s F i n a nc i a l S e r v i c es L t d i s l i s t e d o n t h e N a t io n a l S t o c k E x c h a n g e , B o m b a y S t o c k E x c h a n g e a n d L u x e m b o u r g S t o c k E x c h a n g e .T h e m a r k e t c a p i t a l i z a t i o n o f I n d i a b u l l s i s a r o u n d U S D 6 , 3 0 0 m i l l i o n( 31 s t D ec e m be r , 2 0 0 7 ) . C on s o l i da t e d n e t w o r th o f t he g r o u p i sa r o u nd U S D 9 0 5 m i l l i o n ( 3 1 s t D e c e m b e r , 2 0 0 7 ) . I n d i ab u l l s a n d i t s
g r o u p c o m p a n i e s h a v e a t t r a c t e d m o r e t h a n U S D 8 0 0 m i l l i o n o f e q u i t yc a p i t a l i n F o r e i g n D i r e c t I n v e s t me n t ( F D I) s i n c e M a r c h 2 0 0 0 . S o m eo f t h e l a r g e s ha r eh o ld e r s o f I n di a bu l ls a r e t h e l a rg e s t f i n a nc i ali n s t i t u t i o ns o f t h e w o r l d s u ch a s F i de l i t y F u nd s , G o ld m an S a ch s ,M e r r i l l L y n c h , M o r g a n S t a n l e y a n d F a r a l l o n C a p i t a l .
Business of the company has grown in leaps and bounds since its inception. Revenue of the company
grew at a CAGR of 159% from FY03 to FY07. During the same period, profits of the company grew at a
CAGR of 184%.
Indiabulls became the first company to bring FDI in Indian Real Estate through a JV with Farallon
Capital Management LLC, a respected US based investment firm. Indiabulls has demonstrated deepunderstanding and commitment to Indian Real Estate market by winning competitive bids for landmark
properties in Mumbai and Delhi.
Indiabulls Financial Services Ltd
Last traded 250.00 Change 18.55 (8.01%)
Time 29 Aug, 16:01 Volume 3300365
Prev Close 231.45 Day 's H/L (Rs) 255.50 - 238.00
Mkt Cap (Rs Cr) 6337.50 52wk H/L (Rs) 1028.00 - 213.00
H O W H O T I S T H I S S T O C K ?
* Computed on last 15 days' trading figures.
Price*
Volume*
MF holdings
Sales
Net profit margin
http://money.rediff.com/money/jsp/company.jsp?companyCode=14010473#mf5%23mf5http://money.rediff.com/money/jsp/company.jsp?companyCode=14010473#mf5%23mf5 -
8/6/2019 -Share Market & Financial System-jntu Format
43/73
I N D I A B U L L S F I N A N C I A L S E R V I C E S L T D . V S . . .
Action Company Close (Rs)
Compare+
HDFC (Sensex)2,293.05
Compare+
Bajaj Finserv Ltd. (A)520.90
Compare+
Edelweiss Capital Lt (A)543.85
Compare+
IDFC (A)92.45
Compare+
IFCI Ltd. (A)44.30
Compare
+
India Infoline (A) 128.75
Compare+
Indiabulls Securitie (A)68.10
Compare+
LIC Housing Fi (A)326.65
Compare+
Power Finance Co (A)
130.65
Compare+
Reliance Capital (A)1,278.25
M U T U A L F U N D
http://money.rediff.com/money/jsp/compare_chart.jsp?codes=14010473a14080001http://money.rediff.com/money/jsp/company.jsp?companyCode=14080001http://money.rediff.com/money/jsp/compare_chart.jsp?codes=14010473a14010665http://money.rediff.com/money/jsp/company.jsp?companyCode=14010665http://money.rediff.com/money/jsp/compare_chart.jsp?codes=14010473a14010601http://money.rediff.com/money/jsp/company.jsp?companyCode=14010601http://money.rediff.com/money/jsp/compare_chart.jsp?codes=14010473a14040034http://money.rediff.com/money/jsp/company.jsp?companyCode=14040034http://money.rediff.com/money/jsp/compare_chart.jsp?codes=14010473a14040003http://money.rediff.com/money/jsp/company.jsp?companyCode=14040003http://money.rediff.com/money/jsp/compare_chart.jsp?codes=14010473a14010485http://money.rediff.com/money/jsp/company.jsp?companyCode=14010485http://money.rediff.com/money/jsp/compare_chart.jsp?codes=14010473a14010497http://money.rediff.com/money/jsp/company.jsp?companyCode=14010497http://money.rediff.com/money/jsp/compare_chart.jsp?codes=14010473a14080009http://money.rediff.com/money/jsp/company.jsp?companyCode=14080009http://money.rediff.com/money/jsp/compare_chart.jsp?codes=14010473a14040029http://money.rediff.com/money/jsp/company.jsp?companyCode=14040029http://money.rediff.com/money/jsp/compare_chart.jsp?codes=14010473a14060009http://money.rediff.com/money/jsp/company.jsp?companyCode=14060009http://money.rediff.com/money/jsp/compare_chart.jsp?codes=14010473a14080001http://money.rediff.com/money/jsp/company.jsp?companyCode=14080001http://money.rediff.com/money/jsp/compare_chart.jsp?codes=14010473a14010665http://money.rediff.com/money/jsp/company.jsp?companyCode=14010665http://money.rediff.com/money/jsp/compare_chart.jsp?codes=14010473a14010601http://money.rediff.com/money/jsp/company.jsp?companyCode=14010601http://money.rediff.com/money/jsp/compare_chart.jsp?codes=14010473a14040034http://money.rediff.com/money/jsp/company.jsp?companyCode=14040034http://money.rediff.com/money/jsp/compare_chart.jsp?codes=14010473a14040003http://money.rediff.com/money/jsp/company.jsp?companyCode=14040003http://money.rediff.com/money/jsp/compare_chart.jsp?codes=14010473a14010485http://money.rediff.com/money/jsp/company.jsp?companyCode=14010485http://money.rediff.com/money/jsp/compare_chart.jsp?codes=14010473a14010497http://money.rediff.com/money/jsp/company.jsp?companyCode=14010497http://money.rediff.com/money/jsp/compare_chart.jsp?codes=14010473a14080009http://money.rediff.com/money/jsp/company.jsp?companyCode=14080009http://money.rediff.com/money/jsp/compare_chart.jsp?codes=14010473a14040029http://money.rediff.com/money/jsp/company.jsp?companyCode=14040029http://money.rediff.com/money/jsp/compare_chart.jsp?codes=14010473a14060009http://money.rediff.com/money/jsp/company.jsp?companyCode=14060009 -
8/6/2019 -Share Market & Financial System-jntu Format
44/73
Assets Under management as on 31st July 2008
Assets Under management as on 31st July 2008
The Indian mutual fund industry saw an increase in growth with assets under management (AUM) rising
to Rs.18,724 crore. As per the numbers released by the Association of Mutual Funds in India, the industry
asset base for July 2008 stood at Rs. 5,40,623 crore, an increase of 3.59% over Rs. 5,21,899 crore in June
2008. On a year-on-year basis, the industrys growth in assets has been 11%, up from Rs. 4, 86,513.71
crore as of July 2007. In the month of July 2008, the top three funds witnessed a rise in the AUM
including ABN Canara Robeco Mutual Fund (16.36%), JP Morgan Mutual Fund (15.02%) and ABN
AMRO Mutual Fund (14.9%).Net inflow in Mutual Fund is Rs. 9,699 crore.
-
8/6/2019 -Share Market & Financial System-jntu Format
45/73
A B O U T U S
AnandRathi is a leading full service securities firm providing the entire gamut of financial services. The
firm, founded in 1994 by Mr. AnandRathi, today has a pan India presence as well as an international
presence through offices in Dubai and Bangkok. AR provides a breadth of financial and advisory services
including wealth management, investment banking, corporate advisory, brokerage & distribution of
equities, commodities, mutual funds and insurance, structured products - all of which are supported by
powerful research teams.
The firm's philosophy is entirely client centric, with a clear focus on providing long term value addition to
clients, while maintaining the highest standards of excellence, ethics and professionalism. The entire firm
activities are divided across distinct client groups: Individuals, Private Clients, Corporates and Institutions
and was recently ranked by Asia Money 2006 poll amongst South Asia's top 5 wealth managers for the
ultra-rich.
In year 2007 Citigroup Venture Capital International joined the group as a financial partner
B R O K E R A G E & D I S T R I B U T I O N
Equity & Derivatives Brokerage
AnandRathi provides end-to-end equity solutions to institutional and individual investors. Consistent
delivery of high quality advice on individual stocks, sector trends and investment strategy has establishedus a competent and reliable research unit across the country.
Clients can trade through us online on BSE and NSE for both equities and derivatives. They are supported
by dedicated sales & trading teams in our trading desks across the country. Research and investment ideas
can be accessed by clients either through their designated dealers, email, web or SMS.
-
8/6/2019 -Share Market & Financial System-jntu Format
46/73
M U T U A L F U N D S
AR is one of India's top mutual fund distribution houses. Our success lies in our philosophy of providing
consistently superior, independent and unbiased advice to our clients backed by in-depth research. We
firmly believe in the importance of selecting appropriate asset allocations based on the client's risk
profile.
We have a dedicated mutual fund research cell for mutual funds that consistently churns out superior
investment ideas, picking best performing funds across asset classes and providing insights into
performances of select funds.
D E P O S I T O R Y S E R V I C E S
AR Depository Services provides you with a secure and convenient way for holding your securities on
both CDSL and NSD
Our depository services include settlement, clearing and custody of securities, registration of shares and
dematerialization. We offer you daily updated internet access to your holding statement and transaction
summary.
CDSL Depository
NSDL Depository
C O M M O D I T I E S
Commodities broking- A whole new opportunity to hedge business risk and an attractive investment
opportunity to deliver superior returns for investors .
Our commodities broking services include online futures trading through NCDEX and MCX and
depository services through CDSL. Commodities broking is supported by a dedicated research cell that
provides both technical as well as fundamental research. Our research covers a broad range of traded
commodities including precious and base metals, Oils and Oilseeds, agri-commodities such as wheat,
chana, guar, guar gum and spices such as sugar, jeera and cotton.
In addition to transaction execution, we provide our clients customized advice on hedging strategies,
investment ideas and arbitrage opportunities.
http://www.rathi.com/individuals/brokerage_distribution/crossLogin1.asphttp://www.rathi.com/individuals/brokerage_distribution/estroLogin1.asphttp://www.rathi.com/individuals/brokerage_distribution/crossLogin1.asphttp://www.rathi.com/individuals/brokerage_distribution/estroLogin1.asp -
8/6/2019 -Share Market & Financial System-jntu Format
47/73
I N S U R A N C E B R O K I N G
As an insurance broker, we provide to our clients comprehensive risk management techniques, both
within the business as well as on the personal front. Risk management includes identification,
measurement and assessment of the risk and handling of the risk, of which insurance is an integral part.
The firm deals with both life insurance and general insurance products across all insurance companies.
Our guiding philosophy is to manage the clients' entire risk set by providing the optimal level of cover at
the least possible cost. The entire sales process and product selection is research oriented and customized
to the client's needs. We lay strong emphasis on timely claim settlement and post sales services.
Our services
Risk Management Due diligence and research on policies available
Recommendation on a comprehensive insurance cover based on clients needs
Maintain proper records of client policies Assist client in paying premiums
Continuous monitoring of client account
Assist client in claim negotiation and settlement
I P O s
We are a leading primary market distributor across the country. Our strong performance in IPOs has been
a result of our vast experience in the Primary Market, a wide network of branches across India, strong
distribution capabilities and a dedicated research team
We have been consistently ranked among the top 10 distributors of IPOs on all major offerings. Our IPO
research team provides clients with indepth overviews of forthcoming IPOs as well as investment
recommendations. Online filling of forms is also available.
I N V E S T M E N T B A N K I N G
-
8/6/2019 -Share Market & Financial System-jntu Format
48/73
AR Investment Banking provides comprehensive services to clients including raising money in the equity
capital markets to identifying strategic alliances, mergers and acquisition opportunities and debt financing
& restructuring advisory.
Corporate Finance
The AR Corporate Finance team helps clients manage their debt-financing needs by profiling business
and cash-flow risks, defining the alternative sources of funding , building in multiple variables such as
currencies, fixed-floating, tenure, collateral etc. in a comprehensive manner and finally negotiating with
the prospective lenders / buyers.
The team has also built an impressive track-record in debt restructuring based on its superior
understanding of business needs and relationships with key lenders.
The Corporate Finance team has handled assignments in businesses like paper, hospitality, telecom,
textiles and sugar.
-
8/6/2019 -Share Market & Financial System-jntu Format
49/73
CHAPTER 4
COMPANY PROFILE
-
8/6/2019 -Share Market & Financial System-jntu Format
50/73
Stock Broking business of the group was started in 1995, promoted by professional entrepreneurs
and incubated by the Shriram Group through its entity, Shriram Insight Share Brokers Ltd.
Stock Broking business commenced operations with a corporate membership in NSE in the cash
segment in 1996. Membership in the derivatives segment in the NSE was acquired in 2003.
The Business has expanded into the commodities market with a trading-cum-clearing
membership in the Multi Commodity Exchange (MCX) and the National Commodities and
Derivatives Exchange (NCDEX) through a 100% subsidiary.Stock Broking business is firmly
focused in the rapidly growing High Networth Individual (HNI) and Retail space. Member:
National Stock NSE SEBI Reg. No. : NSE-CM [INB 230947033] | BSE-CM [INB 010947035] ||
NSE-F&O [INF 230947033] ,DP [IN-DP-CDSL-293-2005] ,MCX [Membership No: 10115] |
The business has an active client base of over 1,50,000.The business operates through 1000
branches with equal no. of trading terminals. The business model of Stock Broking largely
focused on owned branches in the initial years and has now graduated into the franchisee mode
of expansion that will cater to PAN India target market. Rapid expansion has been made possible
in this two-pronged strategy of owned and franchised outlets and is expected to have an end-statedistribution, networking over 3000 branches. As the business starts targeting the next level of
mass affluent customers, expanding into wealth management and advisory space, same would
also become a key thrust area that can potentially enhance profitability and shareholder value in
the medium term.
Shiram Insight Logo:
Shiram Insight slogan
About Shiram Insight
The Group has also made investments in Manufacturing, Value Added Services, Project
Development, Engineering Services, Pharmaceuticals, Machined & Auto Components, Press
Dies & Sheet Metal Stamping, Packaging, Information Technology, Property Development etc.
Genesis of the Shriram phenomenon
The 30,000 Cr Shriram Group had its humble beginnings in the Chit Fund business over threedecadesago. R Thyagarajan, AVS Raja and T Jayaraman were the three musketeers whoventured into these businesses. Not many in the financial services industry thought at that time,
-
8/6/2019 -Share Market & Financial System-jntu Format
51/73
this small Chit Funds business in Chennai would indeed be the foundation for the financialconglomerate that Shriram is today.
The Shriram Way!
Shriram Groups businesses strive to serve the largest number of common people. Considerthese: Commercial Vehicle Financing, Consumer & Enterprise Finance, Retail Stock Broking,
Life Insurance, Chit Funds and Distribution of Investment & Insurance Products. Our foray into
Non-Life (General) Insurance is again a strong expression of this commitment.
About Founder
M r . R T h y a g a r a j a n , F o u n d e r
Chairman of the Shriram Group of Companies - Promoted the Shriram Group Companies in
1974. Today the group has over 15, 000 employees and operating through 700 locations and
manage funds of over 15,000 Crores in the business of financial services including life insuranceand general insurance.
Masters in Mathematics
Masters in Mathematical Statistics from Indian Statistical Institute
Associate of Chartered Insurance Institute (A.C.I.1), London
Visiting faculty of Asian Institute of Insurance, Philippines on Consequential Loss Insurance.
By inculcating the philosophy of putting people first, he has transformed the Shriram Group
into Indias Premier Networked Financial Services Supermarket Chain. The Network Shriram
comprises over 650 Branches and Service Centers, served by more than 6000 employees and60,000 agents committed to ensuring world-class customer service. The Groups aggregate
turnover exceeds Rs. 5000 crores.
-
8/6/2019 -Share Market & Financial System-jntu Format
52/73
Shiram Insight Milestones
Year Milestone
1974 Commencement of Business - Shriram Chits
1979 Commencement of Business - Shriram Transport Finance Co (STFC)
1982 Commencement of Business - Shriram Investments Ltd
1984 IPO of STFC
1986 Commencement of Business - Shriram City Union Finance Co (SCUF)
1988 IPO of SCUF
1989 Commencement of Business - Shriram Overseas Finance Ltd
1995 Commencement of Business- Shriram Properties Pvt Ltd
1999 Commencement of Business - Shriram Insight Share Brokers Ltd
1999 Citicorp CV financing tie up with STFC
2000 Commencement of Business - Shriram EPC Ltd
2000 Commencement of Business - TAKE Solutions Ltd
2004 Commencement of Business - Shriram Capital Ltd
2005 Entry of Chryscapital as Partner with STFC & EPC
2005 Entry of Sanlam as Life Insurance business partner and commencement of business-
Shriram Life Insurance Co
2006 Merger of Shriram Investments Ltd & Shriram Overseas Finance Ltd with STFC
2006 Commencement of Business - Shriram Fortune Solutions Ltd
2006 Commencement of Business - Shriram Value Services
2006 Entry of TPG as STFC's partner
2007 Shriram EPC's JV with Leitner Technologies for Manufacture of wind turbines
-
8/6/2019 -Share Market & Financial System-jntu Format
53/73
2007 EPC's foray into Air Pollution Control with Hamon through JV
2007 Orient Green Power was founded by Shriram EPC
2007 IPO of TAKE Solutions Ltd
2008 Commencement of Business - Shriram General Insurance Ltd
2008 IPO of Shriram EPC Ltd
2009 NCD Placement of Rs 10 Bn by STFC
2010 IPO of Orient Green power
Industrial Investments
The Group has also made investments in Manufacturing, Value Added Services, Project
Development, Engineering Services, Pharmaceuticals, Machined & Auto Components, PressDies & Sheet Metal Stamping, Packaging, Information Technology, Property Development etc.
Non-Finanical service:-
Shriram Group has always encouraged entrepreneurship by demonstrating continuous apetite for
investing in start-up manufacturing business.
Our InvestmentThe Group has also made investments in Manufacturing, Value Added Services, Project
Development, Engineering Services, Pharmaceuticals, Machined & Auto Components, Press
Dies & Sheet Metal Stamping, Packaging, Information Technology, Property Development etc.
Shiram group Services
-
8/6/2019 -Share Market & Financial System-jntu Format
54/73
Financial Services :-
Helping Create Wealth. Empowering people through prosperity. Resulting in inclusive growth.
The relentless pursuit of this mission, since our inception in 1974 has given the Shriram Group
our raison d'tre and our distinct identity. The Groups reputation for effectiveness, transparency
and integrity has helped it to become one of Indias largest Financial Services Network.The
Groups Financial Services Businesses manage assets exceeding Rs.40,000 crores, has 6.5
million clients, served by 1,00,000 Agents and 36,000 employees, through 2700 Branches acrossIndia.Our core financial services businesses are housed under the holding company Shriram
Capital Ltd:
Commercial Vehicle Finance
Life Insurance
General Insurance
Consumer & Enterprise Finance
Financial Product Distribution
Retail Stock Broking
Chit Funds
-
8/6/2019 -Share Market & Financ