A Study On

“PERSPECTIVES OF ONLINE TRADING ON

COMMODITY MARKET WITH RESPECT TO GOLD”

with reference to GEOJIT BNP PARIBAS FINANCIAL SERVICE LTD.

This is Submitted towards partial fulfillment of requirement for the

Award of Degree of

MASTER OF BUSINESS ADMINISTRATION

SUBMITTED

BY

P.ANIL BABU(PIN No: 10T91E0002)

Under the Esteemed Guidance ofDr. P.S.R.MURTHY

Professor & Supervisor and Guide

Department of Business Administration

CHAITANYA INSTITUTE OF ENGINEERING & TECHNOLOGY(Affiliated to J.N.T .U, Kakinada)

RAJAHMUNDRY (A.P) 2010– 2012

1

CHAITANYA INSTITUTE OF ENGINEERING & TECHNOLOGY RAJAHMUNDRY

CERTIFICATE

This is to certify that the project report entitled “PERSPECTIVES

OF ONLINE TRADING ON COMMODITY MARKET WITH

RESPECT TO GOLD” with reference to GEOJIT BNP PARIBAS

FINANCIAL SERVICE LTD. has been prepared and submitted by

P.ANIL BABU (10T91E0002) to JNTU, Kakinada, in a partial

fulfillment of the requirement for the award of the degree of Master of

Business Administration, during the academic year 2010-2012, is a

bonafide work carried out by him under my guidance and supervision.

The result embodied in this report has not been submitted to any other

University or Institute for the aware of any degree or diploma.

Head of the Department Project Guide Dr.P.S.V.S.S.K.V. PRASAD Prof. P.S.R MURTHY

External Examiner

2

DECLARATION

I, P.ANIL BABU(10T91E0002) hereby declare that the project

entitled “PERSPECTIVES OF ONLINE TRADING ON

COMMODITY MARKET WITH RESPECT TO GOLD”” with

reference to GEOJIT BNP PARIBAS FINANCIAL SERVICE.LTD

Submitted by me for the award of the degree of Master of Business

Administration is my original work and has been carried out in the

Department of Management Studies, Chaitanya Institute of Engineering

And Technology, Rajahmundry affiliated to JNTU, Kakinada and has not

been submitted previously to any other university or institute for any

degree, diploma or similar title.

Station: P.ANILBABU

Date: (10T91E0002)

3

ACKNOWLEDGEMENT

I would like to express my deep sense of gratitude to our principal Dr.

V.V.S KRISHNA, for giving me an opportunity to undergo this project.

I am thankful to our Dean Dr.P.S.R. Murthy,M.Com,M.Phil,P.hd for

encouraging me in doing this project.

I am Deeply indebted to Dr.P.S.V.S.S.K.V.Prasad,MBA,M.Com,P.hd

Head of the Department of Business Administration, Chaitanya Institute

of Engineering & Technology College,Rajahmundry,whose motivation

made us overcome all the hardship during of the course of study.

I express my deep sense of gratitude; whole hearted thanks to my project

guide Dr. P.S.R.MURTHY , M.com, M.phil,Ph.D. Dean, MBA,

Chaitanya Institute of Engineering & Technology College, Rajahmundry.

I am thankful to the Bank manager Mr.B.venkata siva reddy and officials

of the organization, GEOJIT BNP PARIBAS FINANCIAL SERVICE

LTD, RAJAHMUNDRY for giving me an opportunity and facilities

accorded for carrying out this work.

Finally , I am very happy to extend my gratitude to my parents and friends for their help and support in proving the necessary information every time throughout my project work.

P.ANILBABU (10T91E0002)

4

CONTENTS

CHAPTER-I Page no

Introduction 2 Scope of the study 3 Need for the study 4 Objectives of the study 5 Methodology 6 Limitations of the study 7

CHAPTER-II

Industry profile 9

CHAPTER-III

Company profile 20

CHAPTER-IV

Theoretical framework and Data Analysis 32

CHAPTER-V

Findings 111 Conclusion 112 Suggestions 113

BIBLIOGRAPHY 115

5

Chapter-I

Introduction to the topic

Need for the study

Scope of the study

Objectives of the study

Methodology

Limitations of the study

INTRODUCTION

India, a commodity based economy where two-third of the one billion population

depends on agricultural commodities, surprisingly has an under developed commodity

market. Unlike the physical market, futures markets trades in commodity are largely used

6

as risk management (hedging) mechanism on either physical commodity itself or open

positions in commodity stock. For instance, a jeweler can hedge his inventory against

perceived short-term downturn in gold prices by going short in the future markets.

The article aims at know-how of the commodities market and how the commodities

traded on the exchange. The idea is to understand the importance of commodity

derivatives and learn about the market from Indian point of view. In fact it was one of the

most vibrant markets till early 70s. Its development and growth was shunted due to

numerous restrictions earlier. Now, with most of these restrictions being removed, there is

tremendous potential for growth of this market in the country.

Trading on derivatives first started to protect farmers from the risk of their values against

fluctuations in the price of their crop. From the time it was sown to the time it was ready

for harvest, farmers would face price uncertainty. This was developed to reduce the risk

of the farmers. Let’s take an example when a farmer who sowed his crop in June which

he would receive his harvest in September may face uncertainty in prices over the period

because of the oversupply they are selling at a very low cost.

Due to the high volatility in Financial Market with high risk & low rate of return had

made investors to choose alternate investments such as Bullion market in Commodity

market. In India gold has traditionally played a multi-faceted role. Apart from being used

for ornament purpose, it has also served as an asset of the last resort and a hedge against

inflation and currency depreciation. But most importantly, it has most often been treated

as an investment.

7

SCOPE OF THE STUDY

The study mainly focuses on Indian commodity market, its history and

latest developments in the country in Commodities market. It also keeps a bird’s

eye view on global commodity market and its development. It provides a view

on gold prices during the course of project and also provides regulatory

framework for commodities market in India. Helps to know the trading, clearing

and settlement mechanisms in a commodity market. It also provides information

regarding gold production, demand and consumption of gold in India and also

India in world gold industry and a list of commodity markets in India as well as

in the world.

Study aims at understanding the governance and regulatory frame work

for

commodity derivatives exchanges, traders, investors and other participants.

The scope of study shows the outer line or border of the research study. It

is limited to only one commodity, i.e. Gold and is based on two months

performance of Gold. This study relates to only Indian commodity market that

is MCX, NCDX

8

NEED FOR THE STUDY

Ever since the dawn of civilization commodities trading has become an

integral part in the lives of mankind. The very reason for this lies in the fact that

commodities represent the fundamental elements of utility for human begins. Over

the years commodities market have been experiencing tremendous progress, which

is evident from the fact that the trade in this segment is standing as the boon for the

global economy today.

Coming to Indian scenario, despite a long history of commodity markets,

commodity markets in India are still in their initial stages of development. The

reasons for this can be initial stages of development.

The present topic deals with the investment process of the investor. Now a day it

becomes an integral part of financial literature. It gives the emphasis on how

different factors like inflation affect the price of gold. The main idea behind this

research is to gain basic idea what strategies trading firms and brokers using to gain

maximum profit. It tells the investor when to buy and when to sell the good.

Investors are seeking commodity market as of the important investment avenues.

9

Objectives of the study

To understand the basics of commodity market and to discover the emerging

prospects in the Indian commodity market.

To identify the working procedure of the commodity trading practices in

India.

To know how exactly the commodities are traded through the trading desks

and what happens in the market.

To emphasis trading and settlement mechanism for commodities in Indian

stock exchanges.

To study various types of gold contracts those are available in commodity

market.

Study aims at understanding the governance and regulatory frame work for

commodity derivatives exchanges, traders, investors and other participants.

To analyze the future conditions and situations (buy, hold and sell) on gold

price movements.

10

METHODOLOGY

After the objective of the study has been clearly stated, the next step in

formal research project is to determine the source from which the data is required

to be collected. The data collection is an interesting aspect of the study. For the

purpose of achieving data effectively the information consist of two types of data.

Primary data

Secondary data

PRIMARY DATA

As for the study, primary data is gathered through:

A series of detailed discussions with managers

Executives of the company

Senior manager of finance and accounts

SECONDARY DATA

The secondary data was collected from

Company reports

Reference books

Websites

Administrative reports

Brochures

Documents provided by the organization.

11

LIMITATIONS

Trading gold can be very risky if an investor does not have

knowledge of the gold trading market.

Gold trading online allows investors to trade gold online without

an advisor, but not having a professional advice you can be risky.

Investors without any prior knowledge in trading gold could end up

buying or selling too much gold.

Investors must keep in mind that there will always be some risk in

these types of markets.

The technical analysis is done using daily gold prices.

The present study takes in to consideration of 2 months data of

gold prices only.

Data collection was strictly confined to secondary source, no

primary data is used.

The study is based on the study on fundamental and technical

analysis such as price movement, relationship of gold with other

factors, volume and open interest.

This analysis will be holding good for a limited time period

i.e. based on present scenario and study conducted, future movement of

price may or may not be similar.

12

Chapter-IIINDUSTRY PROFILE

13

INDUSTRIAL PROFILE CAPITAL MARKET

Capital market is a financial market, which provides and facilitates an

orderly exchange of long term needs.

The capital market in India is classified into

Primary market or new issuance market.

Secondary market

Fresh issues of shares and other securities are affected though the

Primary market. Investors can buy and sell securities in secondary market

from/to other investors. The securities are traded, cleared and settled

through intermediaries as per prescribed regulatory framework under the

supervision of the Exchanges and oversight of SEBI. The regulatory

framework has prohibited trading of securities outside the exchanges.

In India the main stock exchanges are National stock exchange and

Bombay stock exchange.

National Stock Exchange:

The National Stock Exchange (NSE) is

India’s leading stock exchange covering various cities and town across

the country. NSE was set up by leading institutions to provide a modern,

fully automated screen – based trading system with national reach. The

exchange has brought about unparalleled transparency, speed and

14

efficiency, safety and market integrity. It has set up facilities that serve as

a model for the securities industry in terms of systems, practices and

procedures.

NSE has played a catalytic role in reforming the

Indian securities market in terms of micro structure, market practices and

trading volumes. The market today uses slate – of – art information

technology to provide an efficient and transparent trading, clearing and

settlement mechanism, and has witnessed several innovations in products

and services viz., dematerialization of stock exchange governance, screen

based trading, compression of settlement cycles, dematerialization and

electronic transfer of securities, securities lending and borrowing,

professionalization of trading members, fine – turned risk management

systems, emergence of clearing corporations to assume counter party

risks, market of debt and derivative instruments and intensive use of

information technology.

The National Stock Exchange of India Limited

has genesis in the report of the High Powered Study Group of

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 exchanges in the country.

On its recognition as a stock exchange under

the Securities Contracts (Regulation) Act, 1956 in April 1993, NSE

15

commenced operations in the Wholesale Debit Market (WDM) segment

commenced operations in November 1994 operations in Derivatives

segment commenced in June 2000.

Our Mission:

NSE’s, mission is setting the agenda for change in

the securities markets in India. The NSE was set-up with the main

objectives of:

Establishing a nationwide trading facility for equities, debt

instruments and hybrids.

Ensuring equal access to investors all over the country through an

appropriate communication network.

Providing a fair, efficient and transparent securities market to

investors using electronic trading systems.

Enabling shorter settlement cycles and book entry settlements

systems

Meeting the current international standards of securities markets.

The standards set by NSE in terms of market practices and technologies

have become industry benchmarks and are being emulated by other

market participants. NSE is more than a mere market facilitator. It’s that

force which is guiding the industry towards new horizons and greater

opportunities.

16

Promoters:

NSE has been promoted by leading financial

institutions, banks, insurance companies and other financial

intermediaries:

Industrial Development Bank of India Limited.

Industrial Finance Corporation of India Limited.

Life Insurance Corporation of India

State Bank of India

ICICI Bank Limited

IL & FS Trust Company Limited

Stock Holding Corporation of India Limited

SBI Capital Markets Limited

The Administrator of the Specified Undertaking of

Unit Trust of India

Bank of Baroda

Canara Bank

General Insurance Corporation of India

National Insurance Company Limited

The New India Assurance Company Limited

The Oriental Insurance Company Limited

Punjab National Bank

Oriental Bank of Commerce

Corporation Bank

Indian Bank

17

Union Bank of India

NSE Logo:

The logo of the NSE symbolize a single nationwide

securities trading facility ensuring equal and fair access to investors,

trading members and issuers all over the country. The initials of the

Exchange viz., N, S and E have been etched on the logo and are distinctly

visible. The logo symbolizes use of state of the art information

technology and satellite connectivity to bring about the change within the

securities industry. The logo symbolizes vibrancy and unleashing of

creative energy to constantly bring about change through innovation.

Corporate Structure:

NSE is one of the first demutualised stock

exchanges in the country, where the ownership and management of the

Exchange is completely divorced from the right to trade on it. Though the

impetus for its establishment came from policy makers in the country, it

has been setup as a public limited company, owned by the leading

institutional investors in the country.

From day one, NSE has adopted the form of a demutualised exchange the

ownership, management and trading is in the hands of three different sets

of people. NSE is owned by a set of leading financial institutions, banks,

insurance companies and other financial intermediaries and is managed

by professional, who do not directly or indirectly trade on the Exchange.

This has completely eliminated any conflict of interest and helped NSE in

aggressively pursuing policies and practices within a public interest

framework.

18

The NSE model however, does not preclude, but in fact accommodates

involvement, support and contribution of trading members in a variety of

way. Its board comprises of senior executives from promoter institutions,

eminent professionals in the fields of law, economics, accountancy,

finance, taxation, etc. public representative, nominees of SEBI and one

full time executive of the Exchange.

While the Board deals with broad policy issues

decisions relating to market operations are delegated by the Board to

various committee constituted by it. Such committee includes

representatives from trading members, professionals, the public and the

management. The day-to-day management of the Exchange is delegated

to the Managing Director who is supported by a team of professional

staff.

Bombay Stock Exchange:

The Stock Exchange, Mumbai, which was established

in 1875 as “The Native Share and Stockbrokers Association” (a voluntary

non-profit making association), has evolved over the years into it present

status as the premier Stock Exchange in the country. It may be noted that

the Stock Exchange is the oldest one in Asia, even older than the Tokyo

Stock Exchange, which was founded in 1878.

The Exchange while providing an efficient market

also upholds the interests of the investors and ensures redressal 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.

19

A Governing Board comprising of 9 elected directors (one third of

them retire every year by rotation) and Executive Director, three

Government nominees, a Reserve Bank of India nominee and five public

representatives, is the apex which regulates the exchange and decides its

policies.

The Governing Board following the election of directors annually

elects a President, Vice President and an Honorary Treasurer from among

the elected directors. The Executive Director as the Chief Executive

Officer is responsible for the day-do-day administration of the Exchange.

The exchange has obtained permission from Securities and

Exchange Board of India (SEBI) for expansion of its BSE-on-Line

Trading (BOLT) network to locations outside Mumbai. In term of the

permission granted by SEBI, the members of the Exchange are free to

install their trading terminals to cities where there are no Stock Exchange.

However, at centers where the other exchanges are located, the Exchange

is required to sign a Memorandum of Understanding with these

Exchanges permitting it to install the BOLT terminals in their

jurisdictional areas.

The expression of BOLT network was inaugurated by the Finance

Minister, Government of India, Sri P. Chidambaram on August 30, 1997.

The Exchange has signed Memorandum of Understanding with eleven

Stock Exchanges, viz., Calcutta, Pune, Ahmadabad, Saurashtra, Kutch

(Rajkot), Madaypradesh, Vadodara, Bhubaneswar and Magadha (i.e.,

Patna)

Jaipur, Coimbatore and Chennai (Madras) to provide BOLT connections

to the members of these Exchanges after obtaining necessary clearance

20

from SEBI. The BOLT network has been expanded to centers outside

Mumbai and covers 232 centre’s having 726 VSATs (Very Small

Aperture Terminals) and 1020 TWSs (Trader Work Stations) as on

October 31, 1999. Of these, 648 VSATs and 872 TWSs respectively are

installed outside Mumbai. With the expansion of BOLT outside Mumbai.

The total average daily turnover at the Exchange has increased from

Rs.1064 crores in August 1997 to Rs. 1404 crores in April 1998 and

further to Rs.2885 crores in October 1999.

The average daily turnover at the Exchange has increased from Rs.

851 crores in 1997-98 to R.1284 crores in 1998-99 and further to Rs.2885

crores in 1999-2000 (April – October 1999). Some of the important

aspects of the working of the stock Exchange, Mumbai are discussed

below.

Trading:

The Exchange has switched over from the open outcry trading

system to a fully automated computerized mode of trading known as

BOLT (BSE On Line Trading) System.This system, which is both order

and quote driven was commissioned on March 14, 1995. It facilitates

more efficient processing, automatic order matching and faster execution

of trades.

Above all, the system is more transparent. The members now enter

orders / quotes on their Trader Work Stations (TWSs) in their offices

instead of assembling in the trading ring.

21

The strips traded on the Exchange have been classified into “A”,

“B1”, “B2”, “C”, “F” and “Z” group. The number of strips listed on the

Exchange under “A”, “B1” and “B2” groups which represent the equity

segments as on October 1999 was 152, 1109 and 4510 respectively. The

“F” group represents the debt market (fixed income securities) segment

wherein 670 securities were listed as at the end of October 1999. The

“Z” group was introduced in the month of July 1999 and covers the list of

companies that fail to comply with listing requirements and also fail to

resolve investor complaints. The “Z” group comprises of 539 scripts as

of October 1999. The “C” group covers the odd lot securities in “A”,

“B1” and “B2” groups and Rights renunciations.

The stock Exchange, Mumbai, is the only Stock Exchange in the

country to provide a facility of on-line trading in odd lot securities and

rights renunciations. This facility of trading in odd lots of securities and

Rights renunciations not only offers an exit route to investors to dispose

of their odd lot of securities but also provides them an opportunity to

consolidate their securities into market lots. Trading in this segment

covers all the scripts listed in the equity segment.

The trading cycle for all these groups of securities is weekly. The

trading cycle for “A, B1, B2”, “C” and “Z” group securities representing

the equity segment is from Monday to Friday and that for “F” group

securities representing the debt market is from Thursday to Wednesday.

The Transactions in “A” group scripts are allowed to be carried forward

from one settlement to another settlement subject to a maximum of 75

days from the date of outstanding positions in “A” group scripts. The

trading session for carry forward of transactions from one settlement to

22

another is conducted on Saturdays, i.e., at the end of every trading cycle

in the equity segment.

Trading on the BOLT system is conducted from Monday to Friday

between 10.00 a.m. and 3.30 p.m. while the carry – forward session for

“A” group securities is conducted on Saturdays between 10.00 a.m. and

12.30 p.m.

The Information Systems Department of the Exchange generates

the following statements that can be downloaded by the members in their

back offices on a daily basis :

Statements giving details of the daily transactions entered into by

the members.

Statements giving details of margins payable by the members in

respect of the trades executed by them.

The members are allowed to enter into transactions on

behalf of their Institutional clients, viz., Scheduled Commercial

Banks, Indian Financial Institutions (IFIs) and Foreign Institutional

Investors (FIIs) and Mutual Funds registered with SEBI. The

settlement of the trades (money and securities) done on behalf of

the Institutions may be either through the member himself or

through a SEBI registered Custodian appointed by an institution.

In case the delivery / payment is to be given or taken by a

Custodian on behalf of an Institution; the former has to confirm the

trade done by a member.

23

For this purpose, the Custodians have been admitted as

members of the Clearing House. In case the Custodian does not

confirm an institutional transaction, the liability for pay in funds or

securities devolves on the concerned member.

24

Chapter-IIICOMPANY PROFILE

COMPANY PROFILE GEOJIT BNP PARIBAS:

25

Origin:

Geojit bnp Paribas was started in the year 1987 when Mr. C.J.

George and Mr. Ranajit Kanjilal founded Geojit as a partnership firm. In

1993, Mr.Ranajit Kanjilal retired from the firm and Geojit became the

proprietary concern of Mr. C .J. George. In 1994, it became a Public

Limited Company named Geojit Securities Ltd. The Kerala State

Industrial Development Corporation Ltd. (KSIDC), in 1995, became a co-

promoter of Geojit by acquiring a 24 percent stake in the company, the

only instance in India of a government entity participating in the equity of

a stock broking company. The year 1995 also saw Geojit being listed on

the leading regional stock exchanges. Geojit listed at The Stock

Exchange, Mumbai (BSE) in the year 2000. Company’s wholly owned

subsidiary, Geojit Commodities Limited, launched Online Futures

Trading in agri-commodities, precious metals and energy futures on

multiple commodity exchanges in 2003. This was also the year when the

company was renamed as Geojit Financial Services Ltd. (GFSL). The

Board consists of professional directors; including a Kerala Government

nominee. With effect from July 2005, the company is also listed at The

National Stock Exchange (NSE). Company is a charter member of the

Financial Planning Standards Board of India and is one of the largest

Depository Participant(DP) brokers in the country.

Geojit BNP Paribas through its first mover advantage in different

26

areas has been the first to serve investors with its innovative offerings.

1st to launch internet trading in the year 2000

1st to launch integrated internet trading system for cash And derivative

segments in the year 2002.

1st Indian stock broking company to commence domestic Retail broking operations in any foreign country.

1st in the industry to have a global player offering its Name thereby creating Geojit BNP Paribas

1st to launch exclusive branches for women in 2005

On 31st December 2007, the company closed its

commodities business and surrendered its membership in the various

commodity exchanges held by Geojit Commodities Ltd. Global banking

major BNP Paribas took a stake in the year 2007 to become the single

largest shareholder. Consequently, Geojit BNP Paribas has been renamed

as Geojit BNP Paribas Financial Services Ltd.

Vision:

27

Our long term business growth strategy is focused on providing

Advice based investment services to customers wherein we

Visualise our dealers advising clients

It has many industry firsts to its credit including branch

banking,

The franchisee model, Internet-based trading and starting

domestic

Retail broking operations in a foreign country

Approach to Research

The Company follows a simple approach to research as follows

Data collection,

Analysis,

Communication,

Feedback.

All the analysts of the firm have significant experience, which they

share with each other. They believe that they have an innovative sources

of data, that helps to keep ahead to identify trends.

It would be unfair on our part not to mention the immense

contribution which our clients and readers feed back forms to the QC as

well as R&D for us. The feedback helps us in all stages- data collection

and communication, most importantly, in improving our methodology as

well.

Below mentioned are the other Directors on the Board:

28

The details of the directors of the Portfolio Manager are detailed below:

No. Name Qualification Experience :

1. Mr. Serge Forti CESB - 1982 and CPA - 1990,

Mr. Serge Forti has been appointed as Chairman Paris, France of The Board of Directors.

GEOJIT BNP Paribas Wealth Management Asia is headed by him as CEO Asia Pacific. A member of GEOJIT BNP Paribas Wealth Management Business Global Executive Committee,

Mr. Serge Forti has a long banking experience with the GEOJIT BNP Paribas Group.

He is particularly familiar with GEOJIT BNP Paribas Asia after spending nine years in Indonesia, Hong Kong, Taiwan and from ( 2000-2004) in Singapore as Head of Wealth Management for South East Asia.

Most recently, Mr. Serge Forti was Head of Private Banking Europe, Middle East and Americas.

2. Mr. Ricardo Sanchez-Moreno Masters degree in Economics Mr.Ricardo Sanchez-Moreno joined GEOJIT BNP Paribas and Business Administration in April 1993 as a Credit Analyst in the Universidad Autonoma de International Commodities Dept.

He later joined Madrid 1992, European School the group internal audit department where he of Management (ESCP-EAP) became the Head of Mission. He joined Private 1991. Banking in 2000 and has served as COO since in the US, Bahamas and now Singapore.

29

3. Mr. Sharad Sharma B.Com., CAIIB (II), M.F.M Mr. Sharad

Sharma is a professional banker and has hands on experience in the banking field.

Mr. Sharma is the head of GEOJIT BNP Paribas Wealth Management in India and has been instrumental in setting up of The investment advisory desk of GEOJIT BNP Paribas, India. He has developed and modeled the "open architecture system" of Wealth Management. Mr. Sharma is well known in the wealth Management Industry and has been with GEOJIT BNP Paribas, India for the last

22 years and has approximately 29 years of working experience.

4. Mr. R. Y. Chikhlikar B.A.

Mr. R. Y. Chikhlikar has been a professional banker for more than 30 years. He was head of "Fixed Income & Treasury" of GEOJIT BNP Paribas, India and is currently "Consultant - Financial Institutions Group", GEOJIT BNP Paribas, India. In his career,

he has served with the State Bank of India for about 20 years.

5. Mr. B. K. Ramabhadran B.Com., LL.B., M.F.M.

Mr. B. K. Ramabhadran is the Principal Officer of

(Principal Officer)GEOJIT BNP Paribas Investment Services India

Pvt. Ltd.

Mr. Ramabhadran has vast experience in capital market

30

operations. In his career he has worked with Tata Share Registry Ltd., ICICI Bank Ltd. and NCDEX

Features of the GEOJIT BNP PARIBAS company:

GEOJIT BNP PARIBAS has Succeeded In Giving The Stock Broking Service

online trading. GEOJIT BNP PARIBAS Is The First Stock Broking Organization In

India To Introduce Trading Facilities On Equity Segment Of NSE & BSE And

Derivatives Segment Through CTCL Solution On A Single Screen

Trade On NSE,BSE

Trade derivatives & portfolio

Integrated Margining System For Equity And Derivatives Segment.

Advantage Of Most Advanced Decision Support System.

Buy Today & Sell Tomorrow.

Buy Today & Pay Tomorrow.

On-Line Risk Management.

Integrated On-Line Trading & Depository.

Hedging Opportunity Between Equity & Derivatives Segments On Same

Screen.

Security Wise Real Time Graph Available.

Competitive Brokerage Structure.

Live Charts, Streaming Quotes And Technical Tools.

Comprehensive Research Data On Companies.

Instant Online Support.

31

Off Line Order Entry.

Transact Through Any 5 Online Banks.

Auto Transfer Of Shares For Pay-In & Exposure.

Online Blocking Of Stock For Margin & Exposure.

Maximum Exposure Against Cash & Shares.

Accepted Securities For Margins.

Option To Manage Trades at Branches.

Speed Trade Facility for Volume Clients.

Growth & Protection of Investment _Wealth Care.

Customer Support:

The company committed to provide for best services and shall be too glad to

render any assistance required by company. I have noticed the constant endeavor to

improve our standards of service and feedback shall be highly valued here. Its have

24X7 consumer center

Research:

The company having the research department it generates daily vary reports

and suggestion on various topics and segments of the capital markets like cash

markets, futures, option and also provides the various company’s information and

also the www.geojitbnpparibas.com maintains the large database about the various

information on each and every script of exchanges both BSE & NSE.

32

GEOJIT BNP PARIBAS Portfolio Management Services:

Portfolio Management Services is an investment in stocks, fixed income

products, debt products, structured products and other securities by a professional

fund manager for clients in line with their management for clients in line with their

investment objective. GEOJIT BNP PARIBAS provides discretionary PMS

(Portfolio Management Services) where in the investment decisions are regards the

choice of securities and the timing of investments is solely the fund manager’s

prerogative.

The Products:

GEOJIT has a bouquet of products expressly formulated keeping in view the

clients risk appetite, investments objective and size of investment, namely

1) ASCIL GEMS (Growing Equity Management Scheme)

This aim of this scheme is to give superior return by investing in

companies of varied market caps across diversified sectors, with a medium to long –

term investment horizon. The Mainstay is to focus on high growth oriented

companies at a nascent stage or matured businesses at attractive valuation ensuring a

balanced portfolio. Ideal for an investor with medium – risk appetite and long term

investment objective.

Minimum Investment: 5lakhs no lock in period. Exit with in first 6months attract

load of 2.58% of investment.

Reports:

Monthly Holding & transaction statements.

Annual auditor certified statement.

33

Product Approach

Investment management on pool Basis Exhaustive Fundamental Research

Prudent stock selection based on predetermined criteria,

Not exceeding 10% on small cap.

Not exceeding 25% in each sector.

Major focus – 90% on Large & Medium Cap.

2) ASCIL STARS (Structured arbitrage returns Scheme)

This scheme aims at generating profits by taking advantage of the arbitrage

opportunities between cash & derivatives markets. The mainstay of this scheme is so

safeguard capital through a simultaneous position entry strategy for an immediate

profit lock outcome. Ideal for an investor with low risk appetite and a penchant for

regular returns.

Minimum investment: Rs.10lakhs no lock in periods. Exit within first 6 months

attract load of 2.5% of investment.

Reports:

Monthly Holding & Transaction Statement,

Annual auditor certified statement

Product Approach:

Low risk strategy designed to deliver returns irrespective of market direction.

Buying cash and selling futures simultaneously because of price differential and

34

unwinding it by selling cash and buying futures at the end of the month to pocket the

spreads.

3) ASCIL COMETS (Current Opportunities’ Maxi miser Emerging Trends

Scheme)

The portfolio would aim to invest in emerging sector companies with

sustainable business models backed by strong management capabilities for short

period swift returns. This is ideally to take advantage of the opportunity presented by

such companies in a conductive market scenario. The mainstay of this scheme would

be “ Book profits – Cut losses” strategy. Ideal for an investor with hight – risk

appetitie with short term investment objective.

Minimum investment: Rs5 lakhs no lock in periods. Exit within first 6 months

attract load of 2.5% of investment.

Reports: Monthly Holding & Transaction Statement, Annual auditor certified

statement.

Product Approach:

Investment management on pool basic exhaustive fundamental Research

prudent stock selection based on predetermined criteria not exceeding 10% on small

cap. Major focus 90% on large & medium cap.

The Client:

35

Any individual/Institution looking to invest in structured products, Equity debt

products.

Any individual/Institution looking for specialized investment solutions.

Any Individual/Institution, who appreciate professional approach to fund

management.

Any Individual/Institution, who is taxed for time & prefer to have investments

managed In short YOU.

Strengths:

The following are the strengths that set the firm apart.

The firm has been in information services for the last seven years and has

assiduously built the necessary for the business.

We have leveraged our content to create the GEOJIT BNP PARIBAS brand,

which is synonymous with credible information on business and finance.

The firm’s top management team represents a skill set, which is mutually

exclusive but collectively exhaustive.

The strength of the organization has been to continuously innovate and

reinvent itself.

36

37

Chapter-IV THEORETICAL FRAME WORK DATA ANALYSIS

INTRODUCTION TO GOLD

38

States Gold is a chemical element with the symbol Au (Latin aurum,

“shining dawn”) and an atomic number of 79. It has been a highly sought

–after precious metal for coinage, jewelry, in rocks, in veins and in

alluvial deposits. Gold is dense, soft, shiny and the most malleable and

ductile pure metal known. Pure gold has a bright yellow color and luster

traditionally considered attractive, which it maintains without oxidizing

in air or water. Gold is one of the coinage metals and has served as a

symbol of wealth and a store of value throughout history. Gold standards

have provided a basis for monetary policies. It also has been linked to a

variety of symbolisms and ideologies. A total of 158,000 tones

(=8,333.33’ cubic meters) of gold have been mined in human history, as

of 2009. Modern industrial uses include dentistry and electronics, where

gold has traditionally found use because of its good resistance to

oxidative corrosion and excellent quality as conductor of electricity. For

thousands of years gold served individuals as the most common medium

of exchange. People began experimenting with convertible paper

currencies backed by gold in the 1700 and 1800s. The international

system of central bank managed gold-backed currencies that developed

was called the gold standard. The “shackles” placed on central banks by

the necessity of ensuring gold convertibility prevented them from issuing

excess paper money to pay for government expenses, thereby causing

inflation. The gold standard was dismantled and the shackles removed on

the eve of World War I when most central banks removed gold

convertibility, ostensibly to make it easier for them to finance

war spending. After this, the world would experience some of the greatest

inflations in history, including that Germany in the early 1920s the

hardships experienced in the Great Depression and World War II kept the

gold standard from being properly reconstructed. It was only after WWII

that the world’s nations attempted to reconnect the international monetary

39

system to gold. In the resulting Breton Woods system that developed, all

currencies were fixed in price to the United dollar, while the dollar itself

was convertible by the world’s central banks into 0.028 ounces of gold (1

ounce was worth $35). The dollar had moved to the centre of the world’s

monetary system, challenging gold.

This shows the gradual unraveling of both the Breton Woods system

and gold’s $35 fixed price, the end of dollar convertibility god, the

elimination of gold as a monetary asset, and the emergence of today’s

system of freely floating competing currencies. Even though the

dollar is no longer linked to gold, it has retained its position as the

world’s pre-eminent medium of exchange. Till today 10 times more

silver has been mined when compared to gold. On Ground

availability pf Gold is five times more than that of silver.

It is a precious metal that is very soft when pure (24 Kt.). Gold is the

most malleable (hammerable) and ductile (able to be made into wire)

metal. Gold is alloyed (mixed with other metals, usually silver and

copper) to make it less expensive and harder. The purity of gold jewellery

is measured in karats. Some countries hallmark gold with a three-digit

number that indicates the parts per thousand of gold. In this system, "750"

means 750/1000 gold (equal to 18K); "500" means 500/1000 gold (equal

to 12K). Alloyed gold comes in many colours.

History of Gold

40

A child finds a shiny rock in a creek, thousands of years

ago, and the human race is introduced to gold for the first time.

Gold was first discovered as shining, yellow nuggets.

"Gold is where you find it," so the saying goes, and gold

was first discovered in its natural state, in streams all over the

world. No doubt it was the first metal known to early hominids.

Gold became a part of every human culture. Its brilliance,

natural beauty, and luster, and its great malleability and resistance to

tarnish made it enjoyable to work and play with. Because gold is

dispersed widely throughout the geologic world, its discovery

occurred to many different groups in many different

locales. And nearly everyone who found i t was impressed

with i t , and so was the developing culture in which they lived

Gold was the first metal widely known to our species. When

thinking about the historical progress o f t e c h n o l o g y , w e

c o n s i d e r t h e d e v e l o p m e n t o f i r o n a n d c o p p e r - w o r k i n g

a s t h e g r e a t e s t contributions to our species' economic and cultural

progress - but gold came first. As far back as 3100 B.C., we have

evidence of a gold/silver value ratio in the code of Menes, the

founder of the first Egyptian dynasty. In this code it is stated that

"one part of gold is equal to two and one half parts of silver in

value." This is our earliest of a value relationship between gold

and silver.

41

In ancient Egypt, around the time of Seti I (1320 B.C.), we find the

creation of the first gold treasure map now known to us. Today, in the

Turin Museum is a papyrus and fragments known as the "Carte des mines

d 'or." It pictures gold mines, miners' quarters, road leading to the mines

and gold-bearing mountains, and so on.

A monetary standard made the world economy possible. The concept

of money, (i.e., gold and silver in standard weight and fineness coins)

allowed the World's economies to expand and prosper. During the Classic

period of Greek and Roman rule in the western world, gold and

silver both flowed to India for spices and to China for silk. At the height

of the Empire (A.D. 98-160), Roman gold and silver coins reigned from

Britain to North Africa and Egypt. Money had been invented. Its name

was gold.

In 2001, it was estimated that 2870 tons of gold were produced

worldwide. About 80 percent of that gold production was used to make

jewellery, the majority of which was sold in India, Europe and the United

States of America. Gold jewellery is universally popular, loved for its

lustrous yellow colour and untarnishing character. In many Asian

countries, such as India, Thailand, and China, gold is important to

religious ceremonies and social occasions, such as the Chinese New Year

and Hindu marriages in India.

Uses of Gold Investment

Gold is an investment

42

Since 2001, we have been in the early stage of a gold bull market. A

young bull market is the investment opportunity of a lifetime. This asset

class (precious metals) should vastly outperform. Traditional asset classes

like stocks, bonds, real estate - for the next 5-10 years. All signs point to a

continued upswing in gold prices. The reality is, gold responds well to

currency debasement and monetary uncertainty.

Gold's Usefulness as safe haven

The geo-political and world economic structure is currently undergoing

major change-some have even called the situation an "upheaval." This

means that the investment outlook, particularly for certain parts of the

world, is more unpredictable than usual. Under these circumstances, it is

logical to conclude that certain investment portfolios should include real

(non-paper) assets such as commodities for protection against a potential

decline in the paper markets.

Gold's Usefulness as an Asset Diversifier

Most portfolios are invested primarily in traditional financial assets such

as stocks, bonds and mutual funds. Adding gold to a portfolio introduces

an entirely different asset; a tangible or real asset, thus increasing the

portfolio's degree of diversification. The purpose of diversification is to

protect the total portfolio against fluctuations in the value of any one asset

or type of asset. Gold does exactly that the reason is basic

The economic forces which determine the price of gold are different

from, and in many cases opposed to, the forces which determine the

prices of most financial assets. The price of equity depends on the

earnings and growth potential of the company it represents. Likewise, the

price of a bond depends on its safety, its yield, and the yields of

competing fixed income investments.

43

Gold is money

Gold is still the most important money in the world. Gold has

been the ultimate store of value and currency for 4,000 years,

outlasting all paper currency and fiat money. Stocks and bonds

expire; governments come and go; but gold is forever. Gold

has intr insic value as a rare asset . Gold is precious. And

what keeps i t precious is that the total amount of gold in

the world is a small quantity.

Gold is insurance.

Gold has always acted as portfolio insurance - protecting you

against potential disaster of your financial assets. Gold is a hedge

because it is negatively correlated to traditional financial assets. In other

words, when paper assets go up - like, stocks and bonds — gold goes

down. And when paper assets go down, gold goes up. History has

shown that a gold-hedged portfolio during uncertain financial and

political times provides the ultimate insurance against potential economic

calamity.

DEMAND FOR GOLD

The Consumer demand for gold is more than 3400 tons per year

making it

Whopping $40 billion worth. More than 80% of the gold consumed is

in the form of jewellery, which is generally predominated by women.

The Indian demand to the tune of 800 tons per year is making it the

largest market for gold followed by USA, Middle East and China.

About 80% of the Physical gold is consumed in the form of jewellery

while bars and coins occupy not higher than 10% of the gold

consumed. If we include jewellery ownership, then India is the largest

44

repository of gold in terms of total gold within the national

boundaries.

Regarding pattern of demand, there are no authentic estimates, the

available evidence shows that about 80% is for jewellery fabrication

for domestic demand, and 15% is for investor demand (which is

relatively elastic to gold-prices, real estate prices, financial markets,

tax policies, etc.). Barely 5% is for industrial uses.

The demand for gold jewellery is rooted in societal preference for a

variety of

reasons. Religious, ritualistic, a preferred form of wealth for women,

and as a hedge against inflation. It will be difficult to prioritize them

but it may be reasonable to conclude that it is a combined effect, and

to treat any major part as exclusively a store of value or hedging

instrument would be unrealistic. It would not be realistic to assume

that it is only the affluent that creates demand for gold. There is reason

to believe that a part of investment demand for gold assets is out of

black money

Rural India continues to absorb more than 70% of the gold

consumed in India and it has its own role to fuel the barter economy of

the agriculture community. The yellow metal used to play an

important role in marriage and religious festivals in India. In the

Hindu, Jain and Sikh community, where women did not inherit landed

property whereas gold and silver jewellery was, and still is, a major

component of the gifts given to a woman at the time of marriage. The

changeover hands of gold at the time of marriage are from few grams

to kgs.The gold also occupies a significant position in the temple

system where gold is used to prepare idol and devotees offer gold in

the temple. These temples are run in trust and gold with the trust

rarely comes into re-circulation. The existing social and cultural

45

system continues to cause net gold buyer market and the government

policies have to take note of the root cause of gold demand, which lies

in the social and cultural system of India. The annual consumption of

gold, which was estimated at 65 tons in 1982, has increased to more

than 700 tons in late 90s. Although it is likely that, with prosperity and

enlightenment, there may be deceleration in demand, particularly

In urban areas, it would be made good by growing demand on account

of prosperity in rural areas. In the near future, therefore, the annual

demand will

continue to be over 600 tons per year.

SUPPLY OF GOLD

Indian gold holding, which are predominantly private, is estimated

to be in the range of 10000- 13000 tons. One fourth of world gold

production is consumed in India and more than 60% of Indian

consumption is met through imports. The domestic production of the

gold is very limited which is around 9 tons in 2002 resulting more

dependence on imported gold. The availability of recycled gold is

price sensitive and as such the dominance of the gold supply through

import is in existence. The fabricated old gold scraps is price elastic

and was estimated to be near 450 tons in 2002. It rose almost more

than 40% compared to the previous year because of rise in gold price

by more than 15%.

The demand- Supply for gold in India can be summed up thus:

46

Demand for gold has an autonomous character. Supply follows

demand.

Demand exhibits income elasticity, particularly in the rural and

semi-urban areas.

Price differential creates import demand, particularly illegal

import prior to the commencement of liberalization in 1990.

World Gold Markets

London as the great clearing house

New York as the home of futures trading

Zurich as a physical turntable

Istanbul, Dubai, Singapore and Hong Kong as doorways to

important consuming regions.

Tokyo where TOCOM sets the mood of Japan

Mumbai under India's liberalized gold regime

24 hours round the clock market

Hong Kong Gold Market

Zurich Gold Market

London Gold Market

New York Market

India in World Gold Industry

(Rounded Figures) India (In Tons) World (In Tons) % Share

47

Total Stocks 13000 145000 9

Central Bank holding 400 28000 1.4

Annual Production 2 2600 0.08

Annual Recycling 100-300 1100-1200 13

Annual Demand 800 3700 22

Annual Imports 600    

Annual Exports 60    

Indian Gold Market

Gold is valued in India as a savings and investment vehicle and is

the second preferred investment after bank deposits.

India is the world's largest consumer of gold in jewellery as

investment.

In July 1997 the RBI authorized the commercial banks to import

gold for sale or loan to jewellers and exporters. At present, 13

banks are active in the import of gold.

This reduced the disparity between international and domestic

prices of gold from 57 percent during 1986 to 1991 to 8.5 percent

in 2001.

The gold hoarding tendency is well ingrained in Indian society.

48

Domestic consumption is dictated by monsoon, harvest and

marriage season. Indian jewellery off take is sensitive to price

increases and even more so to volatility.

In the cities gold is facing competition from the stock market and a

wide range of consumer goods.

Facilities for refining, assaying, making them into standard bars in

India, as compared to the rest of the world, are insignificant, both

qualitatively and quantitatively.

Major gold producing countries

South Africa

United States

Australia

China

Canada

Russia

Indonesia

Peru

Uzbekistan

Papua New Guinea

Ghana

Brazil

Chile

Philippines

Mali

Mexico

Argentina

Kyrgyzstan

Zimbabwe

49

Colombia

Main features of Key Asian Gold Markets

Country Market status

  Loco London gold trading Import of gold bars

China Restricted Restricted

Hong Kong Free Free

India Restricted Restricted

Indonesia Free Free

Japan Free Free

Korea. North Restricted Restricted

Korea, South Restricted Free

Malaysia Free Free

Myanmar Restricted Free

Philippines Restricted Restricted

Singapore Free Free

Taiwan Restricted Free

Thailand Restricted Free

Vietnam Restricted Free

50

Gold conversion

To Convert

Weight Multiply by

Ounces troy to grammes 31.1035

Grammes to ounces troy 0.0321507

Ounces avoirdupois to grammes 28.3495

Grammes to ounces avoirdupois 0.035274

Ounces troy to grains 480

Grains to ounces troy 0.0020833

Ounces troy to ounces avoirdupois 1.09714

Ounces avoirdupois to ounces troy 0.911458

Kilograms to ounces avoirdupois 35.274

Kilograms to ounces troy 32.1507

Ounces troy to tolas 2.6667

Tolas to ounces troy 0.375

Kilograms to tolas 85.755

Ounces troy to taels 0.83

Taels to ounces troy 1.20337

Kilograms to taels 26.7172

For example: 10 ounces troy = 311.035 grammes

51

Market Moving Factors

Above ground supply from sales by central banks, reclaimed scrap

and official gold loans

Producer / miner hedging interest

World macro-economic factors - US Dollar, Interest rate

Comparative returns on stock markets

Domestic demand based on monsoon and agricultural output

The purity of gold articles is generally described in three

ways

Percent % (Parts of

gold per 100)

Fineness(Parts of gold

per 1000)

Karats(Parts of gold

per 24)

100% 999 Fine 24 Karats

91.70% 917 Fine 22 Karats

75.00% 750 Fine 18 Karats

58.50% 583 Fine 14 Karats

41.60% 416 Fine 10 Karats

Gold coated measures

Many gold-coated articles are also used as substitutes for solid karat

gold. The thickness of the coatings are often expressed in millionths of an

52

inch, or micro inches, and the table below provides a way to translate

between these and other measurement units:

1 millionth inch (micro inch) = 0.0254 micron

1 thousandth inch (mil) = 25.4 microns

1 millionth meter (micron) = 39.37 micro inches

1 millimeter = 39.37 mils

FINE GOLD CONTENT

The minimum fineness is 995 parts per 1000 fine gold and gold said to be

1000 fine is marked down to 999.9 fine. The following fine gold contents of other

bar weights are accepted by the London Bullion Market Association (LBMA). These

bars are available at the spot Loco-London price plus a premium which varies

dependent on prevailing market conditions in different locations.

Fine Gold Contents in Ounces Troy

Gross Weight Bars of 995.0 Bars of 999.0 Bars of 999.9

1 Kilo 31.99 32.119 32.148

1/2 Kilo 15.995 16.059 16.074

100 Grams 3.199 3.212 3.215

50 Grams 1.6 1.607 1.608

10 Grams 0.321 0.322 0.322

5 Grams 0.161 0.161 0.161

10 Tolas 3.731 3.746 3.75

5Taels 5.987 6.011 6.017

53

COMMODITY TRADING

COMMODITY MARKET TRADING MECHANISM

Every market transaction consists of three components i.e. trading,

clearing and settlement. A brief overview of how transactions happen on

the NCDEX’s market.

TRADING

The trading system on the NCDEX provides a fully automated

screen based trading for futures on commodities on a nationwide basis as

well as online monitoring and surveillance mechanism. It supports an

order driven market and provides complete transparency of trading

operations. Order matching is essential on the basis of commodity, its

price, time and quantity. All quantity fields are in units and price in

rupees. The exchange specifies the unit of trading and the delivery unit

for futures contracts on various commodities. The exchange notifies the

regular lot size and tick size for each of the contracts traded from time to

time. When any order enters the trading system, it is an active order. It

tries to finds a match on the other side of the book. If it finds a match, a

trade is generated. If it does not find a match, the order becomes passive

and gets queued in the respective outstanding order book in the system.

Time stamping is done for each trade and provides the possibility for a

complete audit trail if required. NCDEX trades commodity futures

contracts having one month, two month and three month expiry cycles.

All contracts expire on the 20th of the expiry month. Thus a January

expiration contract would expire on the 20th of January and a February

expiry contract would cease trading on the 20th of February. If the 20th

of the expiry month is a trading holiday, the contracts shall expire on the

54

previous trading day. New contracts will be introduced on the trading day

following the expiry of the near month contract.

CLEARING

National Securities Clearing Corporation Limited (NSCCL)

undertakes clearing of trades executed on the NCDEX. The settlement

guarantee fund is maintained and managed by NCDEX. Only clearing

members including professional clearing members (PCMs) only are

entitled to clear and settle contracts through the clearing house. At

NCDEX, after the trading hours on the expiry date, based on the available

information, the matching for deliveries takes place firstly, on the basis of

locations and then randomly, keeping in view the factors such as

available capacity of the vault/warehouse, commodities already deposited

and dematerialized and offered for delivery etc. Matching done by this

process is binding on the clearing members. After completion of the

matching process, clearing members are informed of the deliverable/

receivable positions and the unmatched positions. Unmatched positions

have to be settled in cash. The cash settlement is only for the incremental

gain/loss as determined on the basis of final settlement price.

SETTLEMENT

Futures contracts have two types of settlements, the MTM

settlement which happens on a continuous basis at the end of each day,

and the final settlement which happens on the last trading day of the

futures contract. On the NCDEX, daily MTM settlement and the final

MTM settlement in respect of admitted deals in futures contracts are cash

settled by debiting/crediting the clearing accounts of CMs with the

respective clearing bank.

55

All positions of a CM, brought forward, created during the day or closed

out during the day, are market to market at the daily settlement price or

the final settlement price at the close of trading hours on a day. On the

date of expiry, the final settlement price is the spot price on the expiry

day. The responsibility of settlement is on a trading cum clearing member

for all trades done on his own account and his client’s trades. A

professional clearing member is responsible for settling all the

participants’ trades, which he has confirmed to the exchange. On the

expiry date of a futures contract, members submit delivery information

through delivery request window on the trader workstations provided by

NCDEX for all open positions for a commodity for all constituents

individually. NCDEX on receipt of such information matches the

information and arrives at delivery position for a member for a

commodity. The seller intending to make delivery takes the commodities

to the designated warehouse. These commodities have to be assayed by

the exchange specified assayer. The commodities have to meet the

contract specifications with allowed variances. If the commodities meet

the specifications, the warehouse accepts them. Warehouse then ensures

that the receipts get updated in the depository system giving a credit in

the depositor’s electronic account. The seller the gives the invoice to his

clearing member, who would courier the same to the buyer’s clearing

member. On an appointed date, the buyer goes to the warehouse and takes

physical possession of the commodities.

56

Jewellery consumption

Top No. Countries 1998 1999 2000

1 India 622 617 600

2 United States 379 400 409

3 EU 414 395 374

4 China 228 204 184

5 Saudi Arabia 186 167 169

6 Egypt 135 138 128

7 Turkey 142 92 126

8 Italy 108 101 92

9 Indonesia 48 110 88

10 United Kingdom 65 68 74

11 Taiwan 66 66 60

12 Korea 35 52 56

13 Pakistan 53 60 54

14 France 56 56 54

15 Spain 61 53 51

16 Mexico 32 42 51

17 Thailand 21 42 51

57

18 Russia 44 40 47

19 Iran 42 41 45

20 Japan 45 43 43

Gold Terminology

For the purpose of this standard, the following definitions shall apply:

Assaying: The method of accurate determination of the gold

content of the sample expressed in parts per thousand (%).

Carat: One-twenty fourth part by mass of the metallic element

gold.

Fineness: The ratio between the mass of gold content and the total

mass expressed in parts per thousand (%).

Find Gold: It is gold having fineness 999 parts per thousand (5)

and above without any negative tolerance.

Gold: The metallic element gold, free from any other element.

Standard Gold: Gold having fineness 995 parts per thousand (%)

and above without any negative tolerance.

Grain: One of the earliest weight units used for measuring gold.

One grain is equivalent to 0.0648 grams.

Hallmark: Mark, or marks, which indicate the producer of a gold

bar and its number, fineness, etc.

Karat: Unit of fineness, scaled from one to 24. 24 karat gold (or

pure gold) has at least 999 parts pure gold per thousand; 18-karat

has 750, parts pure gold and 250 parts alloy, etc.

58

Kilo Bar: A bar weighing one kilogram – approximately 32.1507

troy ounces.

Legal Tender: The coin or currency which the national monetary

authority declares to be universally acceptable as a medium of

exchange; acceptable for instance in the discharge of debts.

Liquidity: The quality possessed by a financial instrument of

being readily convertible into cash without significant loss of

value.

Troy Ounce: A unit of weight, equal to about 1.1 avoirdupois

(ordinary) ounces. The word ounce when applied to gold refers to

a troy ounce. 1 troy ounce is equivalent to 31.1034768 grams.

Gold futures contract specification

59

Commodity Futures Trading Cycle

NCDEX trades commodity futures contracts having one-month, two-month,

three-month and more (not more than 12 months) expiry cycles. Most of the futures

contracts (mainly agro commodities contract) expire on the 20th of the expiry

month. Some contracts traded on the Exchange expire on the day other than 20th of

the month. New contracts for most of the commodities on NCDEX are introduced

on 10th of every month.

Order Types and Trading Parameters

An electronic trading system allows the trading members to enter orders

with various conditions attached to them as per their requirements. These conditions

are broadly divided into the following categories:

• Time conditions

• Price conditions

• Other conditions

Several combinations of the above are possible thereby providing enormous

flexibility to users. The order types and conditions are summarized below. Of these,

the order types available on the NCDEX system are regular market order, limit

order, stop loss order, immediate or cancel order, good till day order, good till cancelled

order, good till date order and spread order.

Time conditions

Good till day order:

A day order, as the name suggests is an order which is valid for the day on

which it is entered. If the order is not executed during the day, the system cancels

the order automatically at the end of the day. Example: A trader wants to go long on

February 1, 2010 in refined soy oil on the commodity exchange. A day order is

placed at Rs.660/ 10 kg. If the market does not reach this price the order does not

60

get filled even if the market touches Rs.661 and closes. In other words, day order is

for a specific price and if the order does not get filled that day, one has to place the

order again the next day.

Good till cancelled (GTC):

A GTC order remains in the system until the user cancels it. Consequently, it

spans trading days, if not traded on the day the order is entered. The maximum

number of days an order can remain in the system is notified by the Exchange from

time to time after which the order is automatically cancelled by the system. Each

day counted is a calendar day inclusive of holidays. The days counted are inclusive

of the day on which the order is placed and the order is cancelled from the system at

the end of the day of the expiry period. Example: A trader wants to go long on

refined soy oil when the market touches Rs.650/ 10kg. Theoretically, the order

exists until it is filled up, even if it takes months for it to happen. The GTC order on

the NCDEX is cancelled at the end of a period of seven calendar days from the date

of entering an order or when the contract expires, whichever is earlier.

Good till date (GTD):

A GTD order allows the user to specify the date till which the order should

remain in the system if not executed. The maximum days allowed by the system are

the same as in GTC order. At the end of this day/ date, the order is cancelled from

the system. Each day/ date counted are inclusive of the day/ date on which the order

is placed and the order is cancelled from the system at the end of the day/ date of the

expiry period.

Immediate or Cancel (IOC)/ Fill or kill order:

An IOC order allows the user to buy or sell a contract as soon as the order is

released into the system, failing which the order is cancelled from the system.

Partial match is possible for the order, and the unmatched portion of the order is

cancelled immediately.

All or none order:

61

All or none order (AON) is a limit order, which is to be executed in its

entirety, or not at all.

• Price condition

Limit order:

An order to buy or sell a stated amount of a commodity at a specified price,

or at a better price, if obtainable at the time of execution. The disadvantage is that

the order may not get filled at all if the price for that day does not reach the specified

price.

Stop-loss:

A stop-loss order is an order, placed with the broker, to buy or sell a

particular futures contract at the market price if and when the price reaches a

specified level. Futures traders often use stop orders in an effort to limit the amount

they might lose if the futures price moves against their position. Stop orders are not

executed until the price reaches the specified point. When the price reaches that

point the stop order becomes a market order. Most of the time, stop orders are used

to exit a trade. But stop orders can be executed for buying/ selling positions too. A

buy stop order is initiated when one wants to buy a contract or go long and a sell

stop order when one wants to sell or go short. The order gets filled at the suggested

stop order price or at a better price.

Other conditions

Market price:

Market orders are orders for which no price is specified at the time the

order is entered (i.e. price is market price). For such orders, the system determines

the price. Only the position to be taken long/ short is stated. When this kind of

62

order is placed, it gets executed irrespective of the current market price of that

particular commodity.

Trigger price:

Price at which an order gets triggered from the stop-loss book.

Spread order:

A simple spread order involves two positions, one long and one short.

They are taken in the same commodity with different months (calendar spread) or

in closely related commodities. Prices of the two futures contract therefore tend to

go up and down together, and gains on one side of the spread are offset by losses

on the other. The spreaders goal is to profit from a change in the difference

between the two futures prices. The trader is virtually unconcerned whether the

entire price structure moves up or down, just so long as the futures contract he

bought goes up more (or down less) than the futures contract he sold.

Margins for Trading In Futures

Margin is the deposit money that needs to be paid to buy or sell each contract.

The margin required for a futures contract is better described as performance bond or

good faith money. The margin levels are set by the exchanges based on volatility

(market conditions) and can be changed at any time. The margin requirements for

most futures contracts range from 5% to15% of the value of the contract, with a

minimum of 5%, except for Gold where the minimum margin is 4%.In the futures

market; there are different types of margins that a trader has to maintain. We will

discuss them in more details when we talk about risk management in the next chapter.

At this stage we look at the types of margins as they apply on most futures exchanges.

63

Initial margin:

The amount that must be deposited by a customer at the time of entering

into a contract is called initial margin. This margin is meant to cover the potential

loss in one day. The margin is a mandatory requirement for parties who are entering

into the contract. The exchange levies initial margin on derivatives contracts using

the concept of Value at Risk (VaR) or any other concept as the Exchange may

decide periodically. The margin is charged so as to cover one-day loss that can be

encountered on the position on 99.95% confidence-interval VaR methodology.

Exposure & Mark-to-Market Margin:

Exposure margin is charged taking into consideration the back testing results

of the VaR model. For all outstanding exposure in the market, the Exchange also

collects mark-to-market margin which are positions restated at the daily settlement

prices (DSP). At the end of each trading day, the margin account is adjusted to

reflect the trader's gain or loss. This is known as marking to market the account of

each trader. All futures contracts are settled daily reducing the credit exposure to one

day's movement. Based on the settlement price, the value of all positions is marked-

to-market each day after the official close I.e. the account sare either debited or

credited based on how well the positions fared in that day's trading session. If the

account falls below the required margin level the clearing member needs to

replenish the account by giving additional funds or closing positions either partially/

fully. On the other hand, if the position generates a gain, the funds can be withdrawn

(those funds above the required initial margin) or can be used to fund additional

trades.

64

Additional margin:

In case of sudden higher than expected volatility, the Exchange calls for an

additional margin, which is a preemptive move to prevent potential default. This is

imposed when the Exchange/ regulator has view that that the markets have become

too volatile and may result in some adverse situation to the integrity of the market/

Exchange.

Pre-expiry margin:

This margin is charged as additional margin for most commodities expiring during

the current/near month contract. It is charged on a cumulative basis from typically 3

to 5 days prior to the expiry date (including the expiry date). This is done to ensure

that only interested parties remain in the market and speculators rollover their

positions to subsequent months and ensure better convergence of the future sand

spot market prices.

Delivery Margin:

This margin is charged only in the case of positions materializing into delivery.

Members are informed about the delivery margin payable. Margins for delivery are

to be paid the day following expiry of contract.

Special Margin:

This margin is levied when there is more than 20% uni-directionalmovement in the

price from a pre-determined base and is typically related to the underlying spot

price. The base could be the closing price on the day of launch of the contract or the

90 days prior settlement price. This is mentioned in the respective contract

specification. Some contracts also have an as-deemed-fit clause for levying

of Special margins. It can also be levied by market regulator if market exhibits

65

excess volatility. If required by the regulator, it has to be settled by cash. This is

collected as extra margin over and above normal margin requirement.

Margin for Calendar Spread positions:

Calendar spread is defined as the purchase of one delivery month of a given futures

contract and simultaneous sale of another delivery month of the same commodity

by a client/ member. At NCDEX, for calendar spread positions, margins are

imposed as one half of the initial margin (inclusive of the exposure margin). Such

benefit will be given only of there is positive correlation in the prices of the months

under consideration and the far month contracts are sufficiently liquid. No benefit of

calendar spread is given in the case of additional and special margins. However, calendar

spread positions in the far month contract are considered as naked position three

days before expiry of near month contract. Gradual reduction of the spread position

is done at the rate of 33.3% per day from 3 days prior to expiry. Just as a trader is

required to maintain a margin account with a broker, a clearing house member is

required to maintain collaterals/deposits with the clearing house against which the

positions are allowed to be taken.

Charges

Members are liable to pay transaction charges for the trade done through the

Exchange during the previous month. The important provisions are listed below.

The billing for the all trades done during the previous month will be raised in the

succeeding month.

Transaction charges:

The transaction charges are payable at the rate of Rs. 4 perRs.100,000 worth of

trade done. This rate is charged for average daily turnover of Rs. 20 crores.

Reduced rate is charged for increase in daily turnover. This rate is subject to

change from time to time. The average daily turnover is calculated by

66

taking the total value traded by the member in a month and dividing it by number

of trading days in the month including Saturdays.

Due date:

The transaction charges are payable on the 10th day of every month in respect of the

trade done in the previous month.3.

Collection:

Members keep the Exchange Dues Account opened with the respective Clearing

Banks for meeting the commitment on account of transaction charges.

Adjustment against advances transaction charges:

In terms of the regulations, member sare required to remit Rs.50,000 as advance

transaction charges on registration. The transaction charges due first will be adjusted

against the advance transaction charges already paid as advance and members need

to pay transaction charges only after exhausting the balance lying in advance

transaction.

Penalty for delayed payments:

If the transaction charges are not paid on or before the due date, a penal interest is

levied as specified by the Exchange. Finally, the futures market is a zero sum game

i.e. the total number of long in any contract always equals the total number of short

in any contract. The total number of outstanding contracts (long/ short) at any point

in time is called the 'Open interest'. This Open interest figure is a good indicator of

the liquidity in every contract. Based on studies carried out in international

Exchanges, it is found that open interest is maximum in near month

expiry contracts.

67

GOLD CONTRACTS

In India we have 4 types of gold contracts available in mcx.

Gold- 1000 grams

Goldmini- 100 grams

Goldhni- 1000 grams

Goldguinea- 8 grams

Gold – 1000 grams:

It is a thousand grams lot available in mcx and big investor can invest

in this gold lots.

Goldmini – 100 grams:

The medium investor can invest in goldmine and the lot size is 100

grams.

Goldhni – 1000 grams:

It is a 1000 grams lot available in mcx so, here who has registered as a

HNI in mcx he will take the gold HNI contracts at a time, number of

contracts like it called as bulk deals.

Goldguinea – 8 grams:

It is especially for small investors the lot size is 8 grams.

68

TRADING OF GOLD-(1000grams) For the Month of May

Date Closing selling

Price (Rs)

6-May-11 22773

7-May-11 22872

9-May-11 23004

10-May-11 23160

11-May-11 22927

12-May-11 22943

13-May-11 22905

14-May-11 22956

16-May-11 22882

17-May-11 22694

18-May-11 22858

19-May-11 22766

20-May-11 22970

21-May-11 22959

69

23-May-11 23056

24-May-11 23144

25-May-11 23287

26-May-11 23207

27-May-11 23346

28-May-11 23370

30-May-11 23335

31-May-11 23290

TRADING OF GOLD-(1000grams) For the Month of June

Date Closing selling

Price (Rs)

1-Jun-11 23365

2-Jun-11 23082

3-Jun-11 23238

4-Jun-11 23242

6-Jun-11 23327

7-Jun-11 23197

70

8-Jun-11 23143

9-Jun-11 23225

10-Jun-11 23107

11-Jun-11 23120

13-Jun-11 22953

14-Jun-11 22932

15-Jun-11 23012

16-Jun-11 23068

17-Jun-11 23185

18-Jun-11 23208

20-Jun-11 23236

21-Jun-11 23247

22-Jun-11 23326

23-Jun-11 23002

24-Jun-11 22746

25-Jun-11 22806

71

27-Jun-11 22696

28-Jun-11 22729

29-Jun-11 22748

30-Jun-11 22510

TRADING OF GOLD-(1000grams) For The Month Of July

Date Closing selling

Price (Rs)

1-Jul-11 22234

2-Jul-11 22293

4-Jul-11 22343

5-Jul-11 22519

6-Jul-11 22810

72

GRAPH ON GOLD

The below graph shows daily closing prices of the gold

INTERPRETATION

From the above graph we can observe that the price of GOLD

1000grams is facing lot of fluctuations. Its price on 6th may was 22773

and 28th may it has reached highest price to 23370. Later it has decreased

to 22810. This is due to Indian gold prices are correlated with

international prices. However, the fluctuations in the INR-US Dollar

73

impact domestic gold prices and have to be closely followed. Supply –

demand is a major influencer, amid rising global investor demand

and almost stable supplies. Nearly Rs 500 was gone up in the

yellow m e t a l m a r k e t a n d a l s o b y s e e i n g c h a r t o f p r e s e n t

t r a d i n g c o n t r a c t w e c a n  predict the market was in bullish side

rather than bearish.

GOLD GUINEA 8GRAMS

Date Close(RS)

6-May-11 17702

7-May-11 17739

9-May-11 17862

10-May-11 17965

11-May-11 17779

12-May-11 17857

13-May-11 17781

14-May-11 17797

16-May-11 17804

17-May-11 17705

18-May-11 17717

19-May-11 17694

74

20-May-11 17732

21-May-11 17749

23-May-11 17974

24-May-11 18038

25-May-11 18140

26-May-11 18040

27-May-11 18111

28-May-11 18113

30-May-11 18107

31-May-11 18242

1-Jun-11 18103

2-Jun-11 18008

3-Jun-11 18043

4-Jun-11 18045

6-Jun-11 18066

7-Jun-11 18010

8-Jun-11 17955

9-Jun-11 17985

75

10-Jun-11 17945

11-Jun-11 17953

13-Jun-11 17874

14-Jun-11 17826

15-Jun-11 17877

16-Jun-11 17924

17-Jun-11 17974

18-Jun-11 17990

20-Jun-11 18009

21-Jun-11 18010

22-Jun-11 18046

23-Jun-11 17843

24-Jun-11 17660

25-Jun-11 17663

27-Jun-11 17536

28-Jun-11 17556

29-Jun-11 17759

30-Jun-11 17586

76

1-Jul-11 17363

2-Jul-11 17410

4-Jul-11 17444

5-Jul-11 17778

6-Jul-11 17750

GRAPH ON GOLD GUINEA

The below graph shows daily closing prices of the gold guinea

77

INTERPRETATION

As shown in the graph we can observe that the price of GOLD GUINEA

is facing lot of fluctuations. Its price on 6th may was 17702 and 31st may it

has reached highest price to18242. Later it has decreased to 17750. This

is due to the global prices are driven by a host of factors with macro-

economic factors like strength of the economy, rising importance of

emerging markets, currency movements, interest rates.

GOLD MINI-100 GRAMS

Date Closing selling

price(Rs)

6-May-11 21864

7-May-11 21889

9-May-11 22011

10-May-11 22156

11-May-11 21926

12-May-11 22063

13-May-11 21924

14-May-11 21967

16-May-11 21973

17-May-11 21831

18-May-11 21985

78

19-May-11 21893

20-May-11 22169

21-May-11 22172

23-May-11 22304

24-May-11 22386

25-May-11 22505

26-May-11 22384

27-May-11 22517

28-May-11 22521

30-May-11 22624

31-May-11 22562

1-Jun-11 22635

2-Jun-11 22461

3-Jun-11 22527

4-Jun-11 22523

6-Jun-11 22556

7-Jun-11 22494

79

8-Jun-11 22400

9-Jun-11 22457

10-Jun-11 22394

11-Jun-11 22419

13-Jun-11 22235

14-Jun-11 22215

15-Jun-11 22264

16-Jun-11 22346

17-Jun-11 22436

18-Jun-11 22465

20-Jun-11 22493

21-Jun-11 22502

22-Jun-11 22569

23-Jun-11 22259

24-Jun-11 22014

25-Jun-11 22051

27-Jun-11 21928

80

28-Jun-11 21945

29-Jun-11 22150

30-Jun-11 21914

1-Jul-11 21642

2-Jul-11 21709

4-Jul-11 21753

5-Jul-11 22201

6-Jul-11 22164

GRAPH ON GOLD MINI

The below graph shows daily closing prices of gold mini

81

INTERPRETATION

We can observe that the price of GOLD MINI is facing lot of fluctuations

as shown in the graph. Its price on 6th may was 21864 and 1st June it has

reached highest price to 22635. Later it has decreased to 22164. Due to

gold leads the economy, investment in gold is influenced by comparative

returns from other markets like the stock markets, real-estate other

commodities like crude oil.

82

GOLD HNI-1000 GRAMS

Date Close(Rs)

6-May-11 22340

7-May-11 22340

9-May-11 22340

10-May-11 22340

11-May-11 22340

12-May-11 22340

13-May-11 22340

14-May-11 22340

16-May-11 22369

17-May-11 22369

18-May-11 22646

19-May-11 22646

20-May-11 22646

21-May-11 22646

23-May-11 22646

24-May-11 22646

83

25-May-11 22646

26-May-11 22646

27-May-11 22646

28-May-11 22820

30-May-11 23171

31-May-11 23171

1-Jun-11 23171

2-Jun-11 23171

3-Jun-11 23171

4-Jun-11 23171

6-Jun-11 23171

7-Jun-11 23171

8-Jun-11 23171

9-Jun-11 23171

10-Jun-11 23171

11-Jun-11 22699

13-Jun-11 22699

14-Jun-11 22699

84

15-Jun-11 22742

16-Jun-11 22742

17-Jun-11 22991

18-Jun-11 23033

20-Jun-11 23062

21-Jun-11 23071

22-Jun-11 23175

23-Jun-11 22942

24-Jun-11 22942

25-Jun-11 22942

27-Jun-11 22477

28-Jun-11 22560

29-Jun-11 22503

30-Jun-11 22503

1-Jul-11 22503

2-Jul-11 22134

4-Jul-11 22134

5-Jul-11 22134

85

6-Jul-11 22616

GRAPH ON GOLD HNI

The below graph shows daily closing prices of the gold hni

86

INTERPRETATION

In the above graph we can observe that the price of GOLD HNI is facing

lot of fluctuations. Its price on 6th may was 22340 and 22nd June it has

reached highest price to 23175. Later it has decreased to 22616. Due to

supply-demand is a major influencer, amid rising global investor demand

and almost stable supplies. Shifts in official gold reserves, reports of

sales/purchases by central banks act as major price influencing factors,

whenever such reports surface .

Table Showing Gold Trading in NSE-2010

Date Quantity Value in

87

(1000grams) Rs31-Dec-10 2009900 1078840030-Dec-10 2018000 538820029-Dec-10 2013400 655810028-Dec-10 1999800 954500027-Dec-10 2003100 502540024-Dec-10 1994300 638000023-Dec-10 1986600 807700022-Dec-10 1995600 581260021-Dec-10 1997850 636480020-Dec-10 2000500 546280016-Dec-10 1999050 648990015-Dec-10 1997900 863800014-Dec-10 2011100 454070013-Dec-10 1999650 633940010-Dec-10 1997550 47196009-Dec-10 1996250 70618008-Dec-10 2004600 133511007-Dec-10 2027400 83662006-Dec-10 2023350 137774003-Dec-10 2001450 50180002-Dec-10 1998450 89046001-Dec-10 1997300 1994840030-Nov-10 1990250 1288460029-Nov-10 1992950 1289940026-Nov-10 1995450 681660025-Nov-10 1993850 816080024-Nov-10 1999950 798870023-Nov-10 1983400 853740022-Nov-10 1966550 862910019-Nov-10 1964850 940580018-Nov-10 1961300 500500016-Nov-10 1962750 623540015-Nov-10 1960950 1043320012-Nov-10 1969750 861090011-Nov-10 1988250 989460010-Nov-10 1985050 102222009-Nov-10 1982750 130643008-Nov-10 1958850 127727005-Nov-10 1948700 103082004-Nov-10 1930000 171688003-Nov-10 1927650 255252002-Nov-10 1928100 80260001-Nov-10 1936200 1777440029-Oct-10 1895050 1491280028-Oct-10 1886800 930860027-Oct-10 1894000 621310026-Oct-10 1895550 8066000

88

25-Oct-10 1909050 1275830022-Oct-10 1894100 1949990021-Oct-10 1917650 1827180020-Oct-10 1901150 2909680019-Oct-10 1938450 851100018-Oct-10 1920900 1930800015-Oct-10 1934350 2042510014-Oct-10 1947500 2716400013-Oct-10 1930250 1181770012-Oct-10 1918200 2281240011-Oct-10 1913200 128358008-Oct-10 1887050 191390007-Oct-10 1918600 178412006-Oct-10 1910050 139422005-Oct-10 1891700 163219004-Oct-10 1874450 76129001-Oct-10 1872950 935450030-Sep-10 1880650 885620029-Sep-10 1882350 988720028-Sep-10 1862150 1211750027-Sep-10 1871600 844520024-Sep-10 1876250 555100023-Sep-10 1877500 564540022-Sep-10 1871200 2317610021-Sep-10 1870450 714000020-Sep-10 1869300 1171330017-Sep-10 1877800 748460016-Sep-10 1877000 904020015-Sep-10 1884250 1129080014-Sep-10 1861400 909170013-Sep-10 1844000 179769009-Sep-10 1866300 72323008-Sep-10 1878700 73743007-Sep-10 1866750 59888006-Sep-10 1858700 92396003-Sep-10 1868900 90088002-Sep-10 1865800 130255001-Sep-10 1874350 1463180031-Aug-10 1857350 1017650030-Aug-10 1854450 1292560027-Aug-10 1854050 1884930026-Aug-10 1855150 742980025-Aug-10 1854950 1098450024-Aug-10 1830000 988150023-Aug-10 1832850 790760020-Aug-10 1835700 574140019-Aug-10 1829600 350000018-Aug-10 1825450 6978700

89

17-Aug-10 1830650 475280016-Aug-10 1831600 782050013-Aug-10 1817300 704600012-Aug-10 1800950 961960011-Aug-10 1788350 741470010-Aug-10 1778000 41221009-Aug-10 1783100 86054006-Aug-10 1766000 81960005-Aug-10 1771750 80987004-Aug-10 1770700 91148003-Aug-10 1754750 110581002-Aug-10 1751300 1504150030-Jul-10 1753000 1039520029-Jul-10 1748900 1181630028-Jul-10 1742650 2307050027-Jul-10 1774000 1235120026-Jul-10 1791750 1078770023-Jul-10 1804050 527310022-Jul-10 1794900 504680021-Jul-10 1802100 259280020-Jul-10 1789350 1164360019-Jul-10 1796700 872820016-Jul-10 1807550 660170015-Jul-10 1814700 587920014-Jul-10 1814050 692750013-Jul-10 1809650 1666540012-Jul-10 1807300 39142009-Jul-10 1794250 85168008-Jul-10 1809250 57104007-Jul-10 1797550 113881006-Jul-10 1818250 70602005-Jul-10 1816550 72453002-Jul-10 1810750 229606001-Jul-10 1855550 709700030-Jun-10 1853100 524380029-Jun-10 1844000 864240028-Jun-10 1854250 394510025-Jun-10 1850200 465030024-Jun-10 1832100 435490023-Jun-10 1842500 503800022-Jun-10 1827400 1537400021-Jun-10 1844450 3798520018-Jun-10 1841500 1715150017-Jun-10 1833600 442710016-Jun-10 1840200 1582960015-Jun-10 1826500 888350014-Jun-10 1835000 907520011-Jun-10 1832550 8136900

90

10-Jun-10 1838450 75877009-Jun-10 1859850 79925008-Jun-10 1878900 169168007-Jun-10 1836100 89911004-Jun-10 1799400 66951003-Jun-10 1814200 85206002-Jun-10 1830150 68220001-Jun-10 1834800 1446820031-May-10 1797300 803400028-May-10 1794850 1089850027-May-10 1810200 672810026-May-10 1823700 1361870025-May-10 1797600 1223190024-May-10 1771700 408100021-May-10 1768750 946160020-May-10 1768650 969250019-May-10 1785500 1261480018-May-10 1765050 640820017-May-10 1791150 1083150016-May-10 1800600 8739170014-May-10 1795700 1171250013-May-10 1777600 804220012-May-10 1786550 1764440011-May-10 1743350 875180010-May-10 1708200 119962007-May-10 1740850 201471006-May-10 1700150 76763005-May-10 1682900 43525004-May-10 1689100 42752003-May-10 1682800 425240030-Apr-10 1671200 202810029-Apr-10 1669400 416230028-Apr-10 1661400 602970027-Apr-10 1644910 380870026-Apr-10 1648250 338970023-Apr-10 1632320 240760022-Apr-10 1639730 247660021-Apr-10 1636820 257510020-Apr-10 1636030 340890019-Apr-10 1621240 963290016-Apr-10 1651940 319110015-Apr-10 1648920 284510013-Apr-10 1648910 501550012-Apr-10 1658240 51270009-Apr-10 1649450 35872008-Apr-10 1642990 72260007-Apr-10 1626270 48937006-Apr-10 1612970 4905200

91

5-Apr-10 1618430 47048001-Apr-10 1615340 247200031-Mar-10 1608230 366170030-Mar-10 1612220 353390029-Mar-10 1613670 439490026-Mar-10 1603720 574270025-Mar-10 1605860 950370023-Mar-10 1620280 310920022-Mar-10 1620270 909720019-Mar-10 1644090 799480018-Mar-10 1642930 223970017-Mar-10 1648400 338840016-Mar-10 1636090 593250015-Mar-10 1623400 516060012-Mar-10 1637410 496450011-Mar-10 1627970 594700010-Mar-10 1646040 45595009-Mar-10 1644080 33966008-Mar-10 1664420 42684005-Mar-10 1671420 33203004-Mar-10 1679460 51261003-Mar-10 1677660 60049002-Mar-10 1656400 311850026-Feb-10 1650640 451090025-Feb-10 1623010 373740024-Feb-10 1620480 472750023-Feb-10 1639370 189820022-Feb-10 1650600 412060019-Feb-10 1638620 343040018-Feb-10 1631780 383620017-Feb-10 1648160 347500016-Feb-10 1646050 377540015-Feb-10 1630800 396460011-Feb-10 1607340 1098830010-Feb-10 1606890 21962009-Feb-10 1599310 58707008-Feb-10 1607080 42897006-Feb-10 1605310 13765005-Feb-10 1577410 217266004-Feb-10 1634130 74547003-Feb-10 1652470 43525002-Feb-10 1642650 86502001-Feb-10 1609480 845760029-Jan-10 1607390 754010028-Jan-10 1617160 909050027-Jan-10 1625520 767580025-Jan-10 1630130 461310022-Jan-10 1623140 12154100

92

21-Jan-10 1635650 1126650020-Jan-10 1663100 515010019-Jan-10 1664900 481080018-Jan-10 1660280 508280015-Jan-10 1663050 394440014-Jan-10 1661510 374060013-Jan-10 1655650 683110012-Jan-10 1679980 505460011-Jan-10 1679820 67477008-Jan-10 1650620 71674007-Jan-10 1659070 63458006-Jan-10 1660410 86797005-Jan-10 1669320 89498004-Jan-10 1653880 6528700

Table Showing Gold Trading in NSE-2011

DateQuantity(1000 grams)

Value In Rs

1-Dec-11 2796650 3642720030-Nov-11 2766700 2241100029-Nov-11 2762250 1650520028-Nov-11 2763450 26861800

93

25-Nov-11 2726750 2784820024-Nov-11 2748850 2414290023-Nov-11 2739250 2893300022-Nov-11 2750900 3010830021-Nov-11 2749000 4121800018-Nov-11 2745500 2269680017-Nov-11 2783850 1911330016-Nov-11 2795100 4577250015-Nov-11 2767500 3179070014-Nov-11 2774350 4384790011-Nov-11 2742400 430703009-Nov-11 2758150 408802008-Nov-11 2746900 575051004-Nov-11 2685350 338632003-Nov-11 2664900 214958002-Nov-11 2654050 406803001-Nov-11 2616250 2942300031-Oct-11 2599450 3088960028-Oct-11 2627800 4956830026-Oct-11 2619150 5304540025-Oct-11 2577350 2520810024-Oct-11 2584800 3.66E+0821-Oct-11 2538000 2637600020-Oct-11 2529350 5665050019-Oct-11 2545650 2413620018-Oct-11 2556050 1828990017-Oct-11 2569050 2874330014-Oct-11 2566500 1314080013-Oct-11 2563750 1697430012-Oct-11 2575550 2154510011-Oct-11 2554800 2840020010-Oct-11 2543450 279328007-Oct-11 2535100 311832005-Oct-11 2487500 674118004-Oct-11 2575050 482612003-Oct-11 2563350 6019700030-Sep-11 2520600 3857100029-Sep-11 2490200 5747690028-Sep-11 2534300 5011750027-Sep-11 2570250 7687990026-Sep-11 2504000 2.01E+0823-Sep-11 2668650 6102060022-Sep-11 2704300 5852290021-Sep-11 2717500 3634160020-Sep-11 2695150 6236690019-Sep-11 2711600 5458030016-Sep-11 2639750 6417370015-Sep-11 2694850 24869200

94

14-Sep-11 2724900 4527400013-Sep-11 2690250 3115560012-Sep-11 2706500 475701009-Sep-11 2713450 518593008-Sep-11 2634550 470379007-Sep-11 2642550 903132006-Sep-11 2706950 932963005-Sep-11 2726750 727666002-Sep-11 2668150 5058270030-Aug-11 2591650 5249810029-Aug-11 2621150 5141770026-Aug-11 2586700 6716010025-Aug-11 2512850 1.39E+0824-Aug-11 2661200 7242430023-Aug-11 2698050 9443860022-Aug-11 2702000 1.1E+0819-Aug-11 2696650 9747200018-Aug-11 2586100 4677280017-Aug-11 2568300 4654710016-Aug-11 2534150 3800630012-Aug-11 2512050 5490440011-Aug-11 2553450 5028260010-Aug-11 2492900 393382009-Aug-11 2518100 946928008-Aug-11 2417650 770311005-Aug-11 2325200 626451004-Aug-11 2315200 251926003-Aug-11 2306700 461581002-Aug-11 2250600 205745001-Aug-11 2234750 1785440029-Jul-11 2231150 2389950028-Jul-11 2230750 2329080027-Jul-11 2234650 2316450026-Jul-11 2230000 2016240025-Jul-11 2248900 2585010022-Jul-11 2209300 2208240021-Jul-11 2228450 2189670020-Jul-11 2218100 2589760019-Jul-11 2245900 2376410018-Jul-11 2246250 2014550015-Jul-11 2210950 1219130014-Jul-11 2227650 1880110013-Jul-11 2201900 1823300012-Jul-11 2178900 1130460011-Jul-11 2167850 97595008-Jul-11 2140700 69019007-Jul-11 2146550 111753006-Jul-11 2130650 13871300

95

5-Jul-11 2105150 88809004-Jul-11 2100900 158075001-Jul-11 2105000 2379900030-Jun-11 2133750 1106550029-Jun-11 2142300 712030028-Jun-11 2138800 1150620027-Jun-11 2141450 2008810024-Jun-11 2163200 1523330023-Jun-11 2184700 696200022-Jun-11 2190150 795700021-Jun-11 2189300 701440020-Jun-11 2184950 1998300017-Jun-11 2160950 476630016-Jun-11 2159900 682350015-Jun-11 2143400 1265870014-Jun-11 2151250 771710013-Jun-11 2162850 1549500010-Jun-11 2182750 37723009-Jun-11 2174200 59127008-Jun-11 2171800 106123007-Jun-11 2189050 55663006-Jun-11 2185600 47773003-Jun-11 2175400 62671002-Jun-11 2191650 65107001-Jun-11 2173400 949220031-May-11 2190450 742900030-May-11 2181450 583540027-May-11 2178000 413010026-May-11 2173800 523720025-May-11 2183150 958590024-May-11 2170750 870340023-May-11 2160300 991730020-May-11 2136500 574270019-May-11 2125000 843010018-May-11 2130200 1025980017-May-11 2134850 448360016-May-11 2133950 980120013-May-11 2151600 1403500012-May-11 2121750 2017410011-May-11 2156800 1599750010-May-11 2148400 110500009-May-11 2137150 147556006-May-11 2156100 2.4E+085-May-11 2141200 794400004-May-11 2164200 209836003-May-11 2178800 185730002-May-11 2192700 3023470029-Apr-11 2156600 16163900

96

28-Apr-11 2157750 1495890027-Apr-11 2124200 999660026-Apr-11 2121700 2006400025-Apr-11 2142200 3081760021-Apr-11 2114400 1612870020-Apr-11 2113600 1299740019-Apr-11 2110350 1003220018-Apr-11 2088300 880710015-Apr-11 2077950 933760013-Apr-11 2059100 749200011-Apr-11 2067450 94213008-Apr-11 2057850 57400007-Apr-11 2042850 60728006-Apr-11 2045350 104168005-Apr-11 2022850 75885004-Apr-11 2023850 100225001-Apr-11 2029400 459860031-Mar-11 2024300 474780030-Mar-11 2015950 634640029-Mar-11 2009100 1107030028-Mar-11 2024200 1761150025-Mar-11 2033300 1033640024-Mar-11 2046700 776480023-Mar-11 2039500 543260022-Mar-11 2041700 659690021-Mar-11 2038450 497040018-Mar-11 2023850 739320017-Mar-11 1999150 923460016-Mar-11 2006950 1033610015-Mar-11 2023850 649730014-Mar-11 2034150 729950011-Mar-11 2030050 857450010-Mar-11 2043700 37912009-Mar-11 2041650 43381008-Mar-11 2043250 90985007-Mar-11 2054200 109191004-Mar-11 2027650 79354003-Mar-11 2041600 102921001-Mar-11 2024750 407500028-Feb-11 2019700 988880025-Feb-11 2019100 540520024-Feb-11 2032000 884810023-Feb-11 2005600 380200022-Feb-11 2003700 764510021-Feb-11 1999200 636120018-Feb-11 1995650 263310017-Feb-11 1989350 757880016-Feb-11 1984600 2240000

97

15-Feb-11 1977600 325290014-Feb-11 1965950 409810011-Feb-11 1965950 458030010-Feb-11 1970600 53546009-Feb-11 1964750 80230008-Feb-11 1958400 37519007-Feb-11 1953000 83389004-Feb-11 1958050 55013003-Feb-11 1930100 51729002-Feb-11 1942100 42002001-Feb-11 1947450 491620031-Jan-11 1956300 2657750028-Jan-11 1920150 1632370027-Jan-11 1947200 979060025-Jan-11 1930950 1216340024-Jan-11 1961400 1055390021-Jan-11 1956850 1244490020-Jan-11 1978900 382990019-Jan-11 1973150 319400018-Jan-11 1977850 426460017-Jan-11 1968250 650380014-Jan-11 1975650 571700013-Jan-11 1984650 427270012-Jan-11 1982600 424520011-Jan-11 1977150 819740010-Jan-11 1973900 86587007-Jan-11 1967200 89979006-Jan-11 1981400 106174005-Jan-11 1992350 132954004-Jan-11 2013400 71939003-Jan-11 2021150 7992400

Table Showing Gold Trading in BSE-2010

DateQuantity(1000grams)

Value in Rs.

4-Jan-10 1653860 169366815-Jan-10 1668200 188996826-Jan-10 1659350 148988797-Jan-10 1659200 146089548-Jan-10 1651020 861605911-Jan-10 1680000 764556812-Jan-10 1680120 484145513-Jan-10 1656090 1453899314-Jan-10 1661340 7319099

98

15-Jan-10 1662750 1206830818-Jan-10 1661020 545103319-Jan-10 1664600 351784720-Jan-10 1663410 423244621-Jan-10 1635430 1453202022-Jan-10 1623420 1324764725-Jan-10 1630080 509215327-Jan-10 1624250 823210228-Jan-10 1617190 1146274529-Jan-10 1607460 94181521-Feb-10 1609900 115947822-Feb-10 1642960 44497293-Feb-10 1652380 46627734-Feb-10 1634810 58709205-Feb-10 1576500 450037396-Feb-10 1604270 27904718-Feb-10 1606250 71422969-Feb-10 1599720 1070791910-Feb-10 1606090 539150111-Feb-10 1605930 618653815-Feb-10 1627880 899657116-Feb-10 1644980 524116017-Feb-10 1649070 374703218-Feb-10 1632680 606652319-Feb-10 1637990 730415722-Feb-10 1650010 570852023-Feb-10 1639650 180731724-Feb-10 1619910 592161225-Feb-10 1620880 388382426-Feb-10 1652210 41814482-Mar-10 1655150 33325773-Mar-10 1677060 83977874-Mar-10 1678620 42584605-Mar-10 1671480 79146168-Mar-10 1664260 65894709-Mar-10 1644010 782209210-Mar-10 1646530 544820711-Mar-10 1628820 977203312-Mar-10 1637290 478560615-Mar-10 1623960 1095997916-Mar-10 1635350 1029249717-Mar-10 1648240 269041918-Mar-10 1642980 247244219-Mar-10 1645140 319947222-Mar-10 1620450 1053624123-Mar-10 1619960 411872925-Mar-10 1605120 2164641726-Mar-10 1603640 14624920

99

29-Mar-10 1612790 471257130-Mar-10 1612890 390035831-Mar-10 1608020 106975841-Apr-10 1615390 39462845-Apr-10 1617140 38630716-Apr-10 1612560 81751177-Apr-10 1625930 34354648-Apr-10 1643740 66604099-Apr-10 1648840 464106112-Apr-10 1658230 561888413-Apr-10 1648180 303316515-Apr-10 1647950 380649616-Apr-10 1648690 304556119-Apr-10 1621020 930200420-Apr-10 1636310 329575421-Apr-10 1635370 220676822-Apr-10 1640400 527968123-Apr-10 1631680 285478126-Apr-10 1648530 321888227-Apr-10 1644760 291914728-Apr-10 1661650 1198936929-Apr-10 1668850 617996630-Apr-10 1671150 42110683-May-10 1682620 49693134-May-10 1687840 102533045-May-10 1681200 79988286-May-10 1699760 136687287-May-10 1740180 2597432410-May-10 1708300 1614766011-May-10 1745110 1444194612-May-10 1785380 1843864713-May-10 1777380 1306358814-May-10 1796220 2719437016-May-10 1801760 1.45E+0817-May-10 1791520 2387203218-May-10 1765900 938622619-May-10 1785870 1581717220-May-10 1767480 860880021-May-10 1769070 765533124-May-10 1771250 592752225-May-10 1797720 1696892626-May-10 1823440 2479769227-May-10 1809460 1176625528-May-10 1794350 1113909631-May-10 1797690 40233151-Jun-10 1832780 166085902-Jun-10 1828000 226385133-Jun-10 1813650 11592530

100

4-Jun-10 1799780 130049237-Jun-10 1834680 143200758-Jun-10 1878980 257942249-Jun-10 1860260 1960754910-Jun-10 1838860 1137328511-Jun-10 1831480 762083414-Jun-10 1834620 1816126515-Jun-10 1826860 1635893716-Jun-10 1838990 557313217-Jun-10 1833590 642205118-Jun-10 1839620 4268389521-Jun-10 1843220 1234429122-Jun-10 1827040 1070916423-Jun-10 1842060 600349524-Jun-10 1829550 872314025-Jun-10 1849900 519783728-Jun-10 1854170 659240129-Jun-10 1843950 700801830-Jun-10 1853150 58827701-Jul-10 1854090 110510472-Jul-10 1810930 437382475-Jul-10 1816730 128404386-Jul-10 1816840 90818537-Jul-10 1797270 197984678-Jul-10 1809780 65367039-Jul-10 1794430 1674289112-Jul-10 1808140 556891213-Jul-10 1810000 1117664714-Jul-10 1813530 530635915-Jul-10 1815300 850691516-Jul-10 1807320 1015811519-Jul-10 1797020 2107700120-Jul-10 1788750 1383524821-Jul-10 1801590 269541722-Jul-10 1794470 1111020523-Jul-10 1804210 1020822626-Jul-10 1791870 1518454127-Jul-10 1773960 2299269628-Jul-10 1743180 6360610329-Jul-10 1748250 3273887930-Jul-10 1751620 188364752-Aug-10 1751880 212215673-Aug-10 1754210 95274034-Aug-10 1770430 229878235-Aug-10 1771230 180811576-Aug-10 1765390 143771639-Aug-10 1783290 950212510-Aug-10 1777670 7756587

101

11-Aug-10 1787650 583103712-Aug-10 1799560 1101205113-Aug-10 1816510 964365116-Aug-10 1830700 1223736317-Aug-10 1830380 981056918-Aug-10 1824120 925932119-Aug-10 1830280 614867020-Aug-10 1835330 708540023-Aug-10 1832140 581028124-Aug-10 1829730 683879225-Aug-10 1854460 874369726-Aug-10 1855410 1479548627-Aug-10 1853860 1500447330-Aug-10 1854400 3299931231-Aug-10 1857330 154312311-Sep-10 1874420 404780082-Sep-10 1866040 462908933-Sep-10 1868940 160432626-Sep-10 1858650 291082427-Sep-10 1866340 109821918-Sep-10 1879670 123820599-Sep-10 1865570 2031919913-Sep-10 1843510 3801926114-Sep-10 1861600 1391566515-Sep-10 1884670 3236332216-Sep-10 1875760 1625761417-Sep-10 1878510 1339199620-Sep-10 1868820 2816105821-Sep-10 1868550 1994691722-Sep-10 1872460 2506300023-Sep-10 1877270 806842524-Sep-10 1875810 1258045327-Sep-10 1871300 2289313728-Sep-10 1861570 2460599529-Sep-10 1881970 1072327830-Sep-10 1880460 179089541-Oct-10 1873550 150620254-Oct-10 1875020 199245495-Oct-10 1892120 155351726-Oct-10 1910340 268234967-Oct-10 1918050 318493088-Oct-10 1885510 3802018311-Oct-10 1912580 2274660212-Oct-10 1918280 1997326613-Oct-10 1930240 1428881714-Oct-10 1948570 2295779215-Oct-10 1934920 2335680518-Oct-10 1921850 16002569

102

19-Oct-10 1937430 807280720-Oct-10 1901310 5284348921-Oct-10 1917590 1621011422-Oct-10 1894940 4450755225-Oct-10 1907580 2855011226-Oct-10 1895790 1806937627-Oct-10 1894230 1116222128-Oct-10 1886910 1366937029-Oct-10 1901150 161612561-Nov-10 1934880 82972832-Nov-10 1926490 114158893-Nov-10 1926940 841894434-Nov-10 1928900 238989055-Nov-10 1949820 361430848-Nov-10 1957910 315150089-Nov-10 1983830 2712670910-Nov-10 1985090 1680503511-Nov-10 1986940 1595044512-Nov-10 1969870 1421822215-Nov-10 1959930 3862014516-Nov-10 1962100 1069156318-Nov-10 1960350 1269598819-Nov-10 1964430 2382634822-Nov-10 1965380 1509185723-Nov-10 1982240 1041058324-Nov-10 1998680 1360582325-Nov-10 1991870 1030720326-Nov-10 1994590 957855829-Nov-10 1990690 1214062230-Nov-10 1991980 60684141-Dec-10 1997560 211925952-Dec-10 1998440 120255953-Dec-10 2001650 81461936-Dec-10 2023920 220586067-Dec-10 2027210 156816678-Dec-10 2003950 271584679-Dec-10 1995870 1927023210-Dec-10 1998570 1199450613-Dec-10 1999290 1270879614-Dec-10 2010580 804863715-Dec-10 1997920 1409182016-Dec-10 1998870 2458312020-Dec-10 2000190 1457814121-Dec-10 1997890 1361035622-Dec-10 1995400 1025064023-Dec-10 1985980 3072220624-Dec-10 1993390 494088627-Dec-10 2001290 4968333

103

28-Dec-10 1999840 563425929-Dec-10 2013390 1184296330-Dec-10 2018250 928207431-Dec-10 2009500 12873758

Table Showing Gold Trading in BSE-2011

DateQuantity (1000grams)

Value in Rs.

3-Jan-11 2020490 132912464-Jan-11 2013020 209851105-Jan-11 1992360 360221776-Jan-11 1981730 186180417-Jan-11 1967060 2237163710-Jan-11 1973580 2626649211-Jan-11 1976690 14382112

104

12-Jan-11 1983690 528871413-Jan-11 1984780 628052514-Jan-11 1976370 1108520817-Jan-11 1967990 1297689618-Jan-11 1977760 638077819-Jan-11 1974730 366870620-Jan-11 1979680 1223495421-Jan-11 1956180 2041674824-Jan-11 1960960 959286925-Jan-11 1930990 2615442627-Jan-11 1946580 865304328-Jan-11 1921070 8824117031-Jan-11 1955870 165016621-Feb-11 1947200 57458832-Feb-11 1942310 60486233-Feb-11 1929970 60046124-Feb-11 1958570 64150287-Feb-11 1953700 140383848-Feb-11 1957430 94984019-Feb-11 1962280 816311610-Feb-11 1970620 847566111-Feb-11 1965540 736923214-Feb-11 1965360 652624615-Feb-11 1978390 786409016-Feb-11 1983440 453799917-Feb-11 1989370 1146112518-Feb-11 1994920 513378721-Feb-11 1999450 1044882822-Feb-11 2003470 1290705823-Feb-11 2005610 738714524-Feb-11 2031850 2453028925-Feb-11 2018470 747050428-Feb-11 2019460 82083471-Mar-11 2024610 76648033-Mar-11 2040430 200599164-Mar-11 2026790 141262887-Mar-11 2053760 172463798-Mar-11 2044930 101099209-Mar-11 2040620 1459130210-Mar-11 2042930 691279011-Mar-11 2029340 2178648114-Mar-11 2034800 1140094115-Mar-11 2024360 1456583116-Mar-11 2006780 1360637417-Mar-11 1999600 1901613218-Mar-11 2022940 613273421-Mar-11 2037110 704167622-Mar-11 2039750 7159461

105

23-Mar-11 2038860 521823124-Mar-11 2045700 1115246825-Mar-11 2033850 1417465028-Mar-11 2023770 1581251529-Mar-11 2009080 1554785230-Mar-11 2015970 565449831-Mar-11 2022830 57658101-Apr-11 2029810 75876584-Apr-11 2023010 276026425-Apr-11 2023280 124791586-Apr-11 2045470 148907667-Apr-11 2042810 158148868-Apr-11 2056960 1091123711-Apr-11 2070340 2537608313-Apr-11 2058560 1391723915-Apr-11 2077180 2013881418-Apr-11 2088260 1786632319-Apr-11 2111130 2441451820-Apr-11 2113420 2793462721-Apr-11 2115960 2369926325-Apr-11 2141990 7383696926-Apr-11 2122130 3821915427-Apr-11 2124150 2057988028-Apr-11 2156460 2760999529-Apr-11 2155890 349872682-May-11 2193000 468919213-May-11 2179040 281691644-May-11 2165220 207473595-May-11 2140550 379330769-May-11 2135360 3308218810-May-11 2149160 2493242311-May-11 2155430 2752799412-May-11 2121520 3602333313-May-11 2150720 3087040016-May-11 2135190 2220262217-May-11 2135550 1097948818-May-11 2129530 1459708519-May-11 2125300 879543020-May-11 2135820 1048921223-May-11 2159140 1303269024-May-11 2170700 1201931925-May-11 2182850 1647300326-May-11 2173730 1244619527-May-11 2177990 979288830-May-11 2180440 1523584031-May-11 2190260 145225981-Jun-11 2173100 210436792-Jun-11 2190670 16794854

106

3-Jun-11 2175750 183205006-Jun-11 2185130 281463617-Jun-11 2189000 299924918-Jun-11 2172090 214746909-Jun-11 2175340 2606994410-Jun-11 2182640 1042987713-Jun-11 2163970 2339470114-Jun-11 2152700 1558504015-Jun-11 2145350 1187664116-Jun-11 2158920 1180504217-Jun-11 2160030 1312617620-Jun-11 2183690 1725855121-Jun-11 2188950 889940122-Jun-11 2189720 1262977023-Jun-11 2183830 1480106524-Jun-11 2163750 3225816527-Jun-11 2141660 2911919328-Jun-11 2138220 2094561129-Jun-11 2144380 1257797830-Jun-11 2134910 241424581-Jul-11 2104120 463682144-Jul-11 2101050 338853725-Jul-11 2104960 218102976-Jul-11 2130030 172477957-Jul-11 2146000 131849068-Jul-11 2140370 1379421611-Jul-11 2167510 1785142512-Jul-11 2177930 1510663413-Jul-11 2201200 2698471114-Jul-11 2226970 2308194815-Jul-11 2210850 2637302618-Jul-11 2246540 2764379719-Jul-11 2247720 3597646920-Jul-11 2220840 1594825421-Jul-11 2229970 2322519022-Jul-11 2210720 1264197425-Jul-11 2249380 2928315326-Jul-11 2230150 1730692327-Jul-11 2235150 897618728-Jul-11 2230920 771140929-Jul-11 2231720 177548721-Aug-11 2234800 197614072-Aug-11 2252240 244615263-Aug-11 2307550 569431974-Aug-11 2315990 266747435-Aug-11 2328320 413954378-Aug-11 2419760 1453272269-Aug-11 2520230 184450688

107

10-Aug-11 2496560 6805546511-Aug-11 2553660 9313469012-Aug-11 2514210 6179106116-Aug-11 2535330 5798667117-Aug-11 2567650 5843214318-Aug-11 2584760 7028364419-Aug-11 2698380 19237309222-Aug-11 2701870 20825098923-Aug-11 2697060 13263257524-Aug-11 2659340 9170455025-Aug-11 2512370 20962581026-Aug-11 2586140 11647853529-Aug-11 2620460 7492123230-Aug-11 2589160 756499332-Sep-11 2667130 1026632495-Sep-11 2728380 963542026-Sep-11 2707800 1519562147-Sep-11 2643560 1895725618-Sep-11 2634390 1058168359-Sep-11 2714610 9226008012-Sep-11 2706860 8733515613-Sep-11 2690330 4806829814-Sep-11 2723500 6300047415-Sep-11 2695670 3041065516-Sep-11 2640260 11122032419-Sep-11 2712440 7353323220-Sep-11 2694910 8030888421-Sep-11 2716730 4123931322-Sep-11 2704270 5778084123-Sep-11 2667360 11273555826-Sep-11 2507910 31473560927-Sep-11 2570050 9013660328-Sep-11 2534200 8260085029-Sep-11 2489960 9645179830-Sep-11 2518830 528905343-Oct-11 2562260 548929294-Oct-11 2573750 564621815-Oct-11 2487750 890532487-Oct-11 2535590 4078898310-Oct-11 2543090 3805652411-Oct-11 2554950 3592541512-Oct-11 2574800 2641383613-Oct-11 2564220 2454603914-Oct-11 2565990 1659008517-Oct-11 2569020 3899073418-Oct-11 2555720 3045345019-Oct-11 2545800 3411497220-Oct-11 2528340 103401363

108

21-Oct-11 2538360 2656304824-Oct-11 2583170 46166324825-Oct-11 2576220 2761342826-Oct-11 2618980 9081525828-Oct-11 2627300 5140779931-Oct-11 2600870 618575021-Nov-11 2615200 270544572-Nov-11 2653610 505181893-Nov-11 2664740 306558764-Nov-11 2684740 442456328-Nov-11 2746370 850436429-Nov-11 2757430 5243648811-Nov-11 2742950 4044636314-Nov-11 2773910 4069324115-Nov-11 2767640 3102106116-Nov-11 2792710 4910433017-Nov-11 2783960 3253860818-Nov-11 2746010 3442847221-Nov-11 2748600 1709765722-Nov-11 2749880 2286606023-Nov-11 2737960 4498697024-Nov-11 2746000 2873965625-Nov-11 2726130 2620261428-Nov-11 2763180 2920872429-Nov-11 2761030 1645512630-Nov-11 2766160 224927861-Dec-11 2794980 411323342-Dec-11 2795040 263647015-Dec-11 2790390 247339497-Dec-11 2775800 152641248-Dec-11 2798810 327347109-Dec-11 2782330 2472710612-Dec-11 2753540 2608499613-Dec-11 2754770 2161173214-Dec-11 2734370 2569825615-Dec-11 2638730 10210772116-Dec-11 2619370 8691228819-Dec-11 2631540 4145534720-Dec-11 2646760 2539630621-Dec-11 2680740 2091854122-Dec-11 2653620 1542277723-Dec-11 2650970 1799365726-Dec-11 2648930 1182624527-Dec-11 2637610 2069989628-Dec-11 2632530 1204764929-Dec-11 2586170 5592310930-Dec-11 2608910 37973986

109

Table Showing Gold Trading in NSE & BSE -2010

Date

BSE Quantity (1000grams)

NSE Quantity (1000 grams)

BSE Value in Rs

NSEValue in Rs

4-Jan-10 1653860 1653880 16936681 65287005-Jan-10 1668200 1669320 18899682 89498006-Jan-10 1659350 1660410 14898879 86797007-Jan-10 1659200 1659070 14608954 63458008-Jan-10 1651020 1650620 8616059 7167400

11-Jan-10 1680000 1679820 7645568 674770012-Jan-10 1680120 1679980 4841455 505460013-Jan-10 1656090 1655650 14538993 683110014-Jan-10 1661340 1661510 7319099 374060015-Jan-10 1662750 1663050 12068308 394440018-Jan-10 1661020 1660280 5451033 508280019-Jan-10 1664600 1664900 3517847 481080020-Jan-10 1663410 1663100 4232446 515010021-Jan-10 1635430 1635650 14532020 1126650022-Jan-10 1623420 1623140 13247647 1215410025-Jan-10 1630080 1630130 5092153 4613100

110

27-Jan-10 1624250 1625520 8232102 767580028-Jan-10 1617190 1617160 11462745 909050029-Jan-10 1607460 1607390 9418152 75401001-Feb-10 1609900 1609480 11594782 84576002-Feb-10 1642960 1642650 4449729 86502003-Feb-10 1652380 1652470 4662773 43525004-Feb-10 1634810 1634130 5870920 74547005-Feb-10 1576500 1577410 45003739 217266006-Feb-10 1604270 1605310 2790471 13765008-Feb-10 1606250 1607080 7142296 42897009-Feb-10 1599720 1599310 10707919 5870700

10-Feb-10 1606090 1606890 5391501 219620011-Feb-10 1605930 1607340 6186538 1098830015-Feb-10 1627880 1630800 8996571 396460016-Feb-10 1644980 1646050 5241160 377540017-Feb-10 1649070 1648160 3747032 347500018-Feb-10 1632680 1631780 6066523 383620019-Feb-10 1637990 1638620 7304157 343040022-Feb-10 1650010 1650600 5708520 412060023-Feb-10 1639650 1639370 1807317 189820024-Feb-10 1619910 1620480 5921612 472750025-Feb-10 1620880 1623010 3883824 373740026-Feb-10 1652210 1650640 4181448 4510900

2-Mar-10 1655150 1656400 3332577 31185003-Mar-10 1677060 1677660 8397787 60049004-Mar-10 1678620 1679460 4258460 51261005-Mar-10 1671480 1671420 7914616 33203008-Mar-10 1664260 1664420 6589470 42684009-Mar-10 1644010 1644080 7822092 3396600

10-Mar-10 1646530 1646040 5448207 455950011-Mar-10 1628820 1627970 9772033 594700012-Mar-10 1637290 1637410 4785606 496450015-Mar-10 1623960 1623400 10959979 516060016-Mar-10 1635350 1636090 10292497 593250017-Mar-10 1648240 1648400 2690419 338840018-Mar-10 1642980 1642930 2472442 223970019-Mar-10 1645140 1644090 3199472 799480022-Mar-10 1620450 1620270 10536241 909720023-Mar-10 1619960 1620280 4118729 310920025-Mar-10 1605120 1605860 21646417 950370026-Mar-10 1603640 1603720 14624920 574270029-Mar-10 1612790 1613670 4712571 439490030-Mar-10 1612890 1612220 3900358 353390031-Mar-10 1608020 1608230 10697584 3661700

1-Apr-10 1615390 1615340 3946284 24720005-Apr-10 1617140 1618430 3863071 47048006-Apr-10 1612560 1612970 8175117 49052007-Apr-10 1625930 1626270 3435464 4893700

111

8-Apr-10 1643740 1642990 6660409 72260009-Apr-10 1648840 1649450 4641061 3587200

12-Apr-10 1658230 1658240 5618884 512700013-Apr-10 1648180 1648910 3033165 501550015-Apr-10 1647950 1648920 3806496 284510016-Apr-10 1648690 1651940 3045561 319110019-Apr-10 1621020 1621240 9302004 963290020-Apr-10 1636310 1636030 3295754 340890021-Apr-10 1635370 1636820 2206768 257510022-Apr-10 1640400 1639730 5279681 247660023-Apr-10 1631680 1632320 2854781 240760026-Apr-10 1648530 1648250 3218882 338970027-Apr-10 1644760 1644910 2919147 380870028-Apr-10 1661650 1661400 11989369 602970029-Apr-10 1668850 1669400 6179966 416230030-Apr-10 1671150 1671200 4211068 20281003-May-10 1682620 1682800 4969313 42524004-May-10 1687840 1689100 10253304 42752005-May-10 1681200 1682900 7998828 43525006-May-10 1699760 1700150 13668728 76763007-May-10 1740180 1740850 25974324 20147100

10-May-10 1708300 1708200 16147660 1199620011-May-10 1745110 1743350 14441946 875180012-May-10 1785380 1786550 18438647 1764440013-May-10 1777380 1777600 13063588 804220014-May-10 1796220 1795700 27194370 1171250016-May-10 1801760 1800600 145431306 8739170017-May-10 1791520 1791150 23872032 1083150018-May-10 1765900 1765050 9386226 640820019-May-10 1785870 1785500 15817172 1261480020-May-10 1767480 1768650 8608800 969250021-May-10 1769070 1768750 7655331 946160024-May-10 1771250 1771700 5927522 408100025-May-10 1797720 1797600 16968926 1223190026-May-10 1823440 1823700 24797692 1361870027-May-10 1809460 1810200 11766255 672810028-May-10 1794350 1794850 11139096 1089850031-May-10 1797690 1797300 4023315 8034000

1-Jun-10 1832780 1834800 16608590 144682002-Jun-10 1828000 1830150 22638513 68220003-Jun-10 1813650 1814200 11592530 85206004-Jun-10 1799780 1799400 13004923 66951007-Jun-10 1834680 1836100 14320075 89911008-Jun-10 1878980 1878900 25794224 169168009-Jun-10 1860260 1859850 19607549 7992500

10-Jun-10 1838860 1838450 11373285 758770011-Jun-10 1831480 1832550 7620834 813690014-Jun-10 1834620 1835000 18161265 9075200

112

15-Jun-10 1826860 1826500 16358937 888350016-Jun-10 1838990 1840200 5573132 1582960017-Jun-10 1833590 1833600 6422051 442710018-Jun-10 1839620 1841500 42683895 1715150021-Jun-10 1843220 1844450 12344291 3798520022-Jun-10 1827040 1827400 10709164 1537400023-Jun-10 1842060 1842500 6003495 503800024-Jun-10 1829550 1832100 8723140 435490025-Jun-10 1849900 1850200 5197837 465030028-Jun-10 1854170 1854250 6592401 394510029-Jun-10 1843950 1844000 7008018 864240030-Jun-10 1853150 1853100 5882770 5243800

1-Jul-10 1854090 1855550 11051047 70970002-Jul-10 1810930 1810750 43738247 229606005-Jul-10 1816730 1816550 12840438 72453006-Jul-10 1816840 1818250 9081853 70602007-Jul-10 1797270 1797550 19798467 113881008-Jul-10 1809780 1809250 6536703 57104009-Jul-10 1794430 1794250 16742891 8516800

12-Jul-10 1808140 1807300 5568912 391420013-Jul-10 1810000 1809650 11176647 1666540014-Jul-10 1813530 1814050 5306359 692750015-Jul-10 1815300 1814700 8506915 587920016-Jul-10 1807320 1807550 10158115 660170019-Jul-10 1797020 1796700 21077001 872820020-Jul-10 1788750 1789350 13835248 1164360021-Jul-10 1801590 1802100 2695417 259280022-Jul-10 1794470 1794900 11110205 504680023-Jul-10 1804210 1804050 10208226 527310026-Jul-10 1791870 1791750 15184541 1078770027-Jul-10 1773960 1774000 22992696 1235120028-Jul-10 1743180 1742650 63606103 2307050029-Jul-10 1748250 1748900 32738879 1181630030-Jul-10 1751620 1753000 18836475 103952002-Aug-10 1751880 1751300 21221567 150415003-Aug-10 1754210 1754750 9527403 110581004-Aug-10 1770430 1770700 22987823 91148005-Aug-10 1771230 1771750 18081157 80987006-Aug-10 1765390 1766000 14377163 81960009-Aug-10 1783290 1783100 9502125 8605400

10-Aug-10 1777670 1778000 7756587 412210011-Aug-10 1787650 1788350 5831037 741470012-Aug-10 1799560 1800950 11012051 961960013-Aug-10 1816510 1817300 9643651 704600016-Aug-10 1830700 1831600 12237363 782050017-Aug-10 1830380 1830650 9810569 475280018-Aug-10 1824120 1825450 9259321 697870019-Aug-10 1830280 1829600 6148670 3500000

113

20-Aug-10 1835330 1835700 7085400 574140023-Aug-10 1832140 1832850 5810281 790760024-Aug-10 1829730 1830000 6838792 988150025-Aug-10 1854460 1854950 8743697 1098450026-Aug-10 1855410 1855150 14795486 742980027-Aug-10 1853860 1854050 15004473 1884930030-Aug-10 1854400 1854450 32999312 1292560031-Aug-10 1857330 1857350 15431231 10176500

1-Sep-10 1874420 1874350 40478008 146318002-Sep-10 1866040 1865800 46290893 130255003-Sep-10 1868940 1868900 16043262 90088006-Sep-10 1858650 1858700 29108242 92396007-Sep-10 1866340 1866750 10982191 59888008-Sep-10 1879670 1878700 12382059 73743009-Sep-10 1865570 1866300 20319199 7232300

13-Sep-10 1843510 1844000 38019261 1797690014-Sep-10 1861600 1861400 13915665 909170015-Sep-10 1884670 1884250 32363322 1129080016-Sep-10 1875760 1877000 16257614 904020017-Sep-10 1878510 1877800 13391996 748460020-Sep-10 1868820 1869300 28161058 1171330021-Sep-10 1868550 1870450 19946917 714000022-Sep-10 1872460 1871200 25063000 2317610023-Sep-10 1877270 1877500 8068425 564540024-Sep-10 1875810 1876250 12580453 555100027-Sep-10 1871300 1871600 22893137 844520028-Sep-10 1861570 1862150 24605995 1211750029-Sep-10 1881970 1882350 10723278 988720030-Sep-10 1880460 1880650 17908954 8856200

1-Oct-10 1873550 1872950 15062025 93545004-Oct-10 1875020 1874450 19924549 76129005-Oct-10 1892120 1891700 15535172 163219006-Oct-10 1910340 1910050 26823496 139422007-Oct-10 1918050 1918600 31849308 178412008-Oct-10 1885510 1887050 38020183 19139000

11-Oct-10 1912580 1913200 22746602 1283580012-Oct-10 1918280 1918200 19973266 2281240013-Oct-10 1930240 1930250 14288817 1181770014-Oct-10 1948570 1947500 22957792 2716400015-Oct-10 1934920 1934350 23356805 2042510018-Oct-10 1921850 1920900 16002569 1930800019-Oct-10 1937430 1938450 8072807 851100020-Oct-10 1901310 1901150 52843489 2909680021-Oct-10 1917590 1917650 16210114 1827180022-Oct-10 1894940 1894100 44507552 1949990025-Oct-10 1907580 1909050 28550112 1275830026-Oct-10 1895790 1895550 18069376 806600027-Oct-10 1894230 1894000 11162221 6213100

114

28-Oct-10 1886910 1886800 13669370 930860029-Oct-10 1901150 1895050 16161256 149128001-Nov-10 1934880 1936200 8297283 177744002-Nov-10 1926490 1928100 11415889 80260003-Nov-10 1926940 1927650 84189443 255252004-Nov-10 1928900 1930000 23898905 171688005-Nov-10 1949820 1948700 36143084 103082008-Nov-10 1957910 1958850 31515008 127727009-Nov-10 1983830 1982750 27126709 13064300

10-Nov-10 1985090 1985050 16805035 1022220011-Nov-10 1986940 1988250 15950445 989460012-Nov-10 1969870 1969750 14218222 861090015-Nov-10 1959930 1960950 38620145 1043320016-Nov-10 1962100 1962750 10691563 623540018-Nov-10 1960350 1961300 12695988 500500019-Nov-10 1964430 1964850 23826348 940580022-Nov-10 1965380 1966550 15091857 862910023-Nov-10 1982240 1983400 10410583 853740024-Nov-10 1998680 1999950 13605823 798870025-Nov-10 1991870 1993850 10307203 816080026-Nov-10 1994590 1995450 9578558 681660029-Nov-10 1990690 1992950 12140622 1289940030-Nov-10 1991980 1990250 6068414 12884600

1-Dec-10 1997560 1997300 21192595 199484002-Dec-10 1998440 1998450 12025595 89046003-Dec-10 2001650 2001450 8146193 50180006-Dec-10 2023920 2023350 22058606 137774007-Dec-10 2027210 2027400 15681667 83662008-Dec-10 2003950 2004600 27158467 133511009-Dec-10 1995870 1996250 19270232 7061800

10-Dec-10 1998570 1997550 11994506 471960013-Dec-10 1999290 1999650 12708796 633940014-Dec-10 2010580 2011100 8048637 454070015-Dec-10 1997920 1997900 14091820 863800016-Dec-10 1998870 1999050 24583120 648990020-Dec-10 2000190 2000500 14578141 546280021-Dec-10 1997890 1997850 13610356 636480022-Dec-10 1995400 1995600 10250640 581260023-Dec-10 1985980 1986600 30722206 807700024-Dec-10 1993390 1994300 4940886 638000027-Dec-10 2001290 2003100 4968333 502540028-Dec-10 1999840 1999800 5634259 954500029-Dec-10 2013390 2013400 11842963 655810030-Dec-10 2018250 2018000 9282074 538820031-Dec-10 2009500 2009900 12873758 10788400

115

Table Showing NSE Trading particulars

MonthOther commodity (silver) value in Rs

Gold quantity Gold value in Rs

10-Jan 10482991.43 1607.46 19555982310-Feb 11954575.34 1652.21 15665883210-Mar 10970500.76 1608.02 15817247710-Apr 9914325.4 1671.15 9768293210-May 12532951.8 1797.69 43754438110-Jun 13589497.77 1853.15 29422091910-Jul 12518705.45 1751.62 37279138510-Aug 13991490.84 1857.33 27410515910-Sep 14978165.88 1880.46 45950292910-Oct 23493683.39 1901.15 47578688110-Nov 32379716.95 1991.98 43259712710-Dec 27336634.52 2009.5 31566385011-Jan 30612159.87 1955.87 37941251411-Feb 33207045.39 2019.46 17823435811-Mar 45446645.72 2022.83 26474705211-Apr 65807898.9 2155.89 43786648011-May 55917849.48 2190.26 44676422811-Jun 41394289.1 2134.91 42069218811-Jul 56509719.04 2231.72 45215677211-Aug 64482246.87 2589.16 201033461411-Sep 54162007.37 2518.83 208107127011-Oct 38587011.47 2600.87 130961004211-Nov 43404119.7 2766.16 72623595211-Dec 37161913.9 2608.91 687029430

116

Chapter -V Findings Suggestions Conclusion

117

FINDINGS

GOLD 1000grams has started at a price of Rs22773 reached

highest rate of Rs23370 and latterly closed at 22810.

GOLD GUINEA has started at a price of Rs17702, reached to

Rs18242 and later it has decreased to Rs17750.

GOLD MINI 100grams starting price was Rs21864; on 1st June

it has reached to highest price of Rs22635 and closed at

Rs22164.

GOLD HNI 1000grams started at Rs22340, reached to Rs23175

and closed at Rs22616.

ISS has commenced operations in the NSE segment from May 3

2000 and the BSE segment from December 24, 2004.

Investment in gold is influenced by comparative returns from

other markets like stock markets, real estates and other

commodities like crude oil.

118

CONCLUSION

Though many investors were a bit hesitant about commodities

trading but still they were positive as commodities trading will be a

boom in a long run after about 5 to 10 years as it is still gaining its

popularity.

Many investors thought it’s a very deep study and if one can

understand then he can invest in commodities trading.

Many investors asked as to what derivatives has to do in

commodities trading.

Many of the investors had a good knowledge about MCX and

NCDEX and suggested that those having proper knowledge about these

two can invests in commodities trading without much of a doubt.

Many investors were of the opinion that a commodity trading is

full of speculation, which is to the utmost extent true.

A commodity trading is considered to give highest returns when

compared to other investment options.

119

A commodity trading is of high risk also when compared to other

investment options.

On the whole commodities’ trading is slowly but surely gaining

popularity among investors.

SUGGESTIONS

India has a deep ingrained knowledge in commodity trading (and

particularly forward trading in commodities), especially in the interior

heartland. For last 40 years or so, such forward (futures) trading was

banned in the country for a variety of reasons and it is being revived now.

The ban has meant that two generations have lost touch with the trading

skills and the related knowledge levels in the commodity space.

Fortunately much of the skill sets have migrated to stock exchanges.

We need our Exchange to reach to the producers, end-users, and even

the retail investors, at a grassroots level. Education and awareness has a

key role to play in achieving this vision.

Though commodity futures were introduced in 1998 in India, but still

the Indian commodity traders have not started their participation in full

enthusiasm. They are apprehensive about the unfamiliar instrument. Lack

of awareness and understanding of futures trading could be one of the

reasons for the failure of the commodity futures. So there is a need to

bridge this knowledge gap among the traders community.

There are about 26 commodity exchanges in India. But only a few of

them are active. About 24 of them do not have modern communication

120

facilities. This is a serious problem of concern, necessary steps is to taken

to bring out commodity exchanges with the required infrastructure,

employees and sophisticated technology.

Bibliography

121

BIBLIOGRAPHY

Journals &Articles

Jangaih Paladi and c.Anitha raman,commodity

market_ A relook ,in icfai reader

Websites

Market data is available from the URL

http://www.mcxindia.com/market/date wise

Gold prices are available from the URL

http://www.kitco.com/market/date wise

Company data available from the URL

http://www.geojit.com/webform/view page

www.google.com

122