jagrati - final report submitted to h.o

8/3/2019 Jagrati - Final Report Submitted to H.O

1/70

j

1

A

Summer Training Report

On

POTENTIAL OF EQUITY

MARKET AND AWAIRNESS OF UNICON

AMONG INVESTORS

Submitted in partial fulfillment of the

requirement of BBA programme of

M.D.S. University, Ajmer

Company Guide

LALIT GAUR

Branch Head, Ajmer

SUBMITTED TO: SUBMITTED BY:

JAGRATI GURNANI

BBA (IIIrd Year)

MANAGEMENT & COMMERCE INSTITUTE OF GLOBALSYNERGY, AJMER


2/70

j

2

ACKNOWLEDGEMENT

At the very beginning, I wish to render my deep sense of gratitude with

special thanks and due regard to Mr. LALIT GAUR (Branch Manager,

Unicon Investment Solution-AJMER) whom I required the privilege

of working. His invaluable guidance and thoughtful consideration had

been the key motivating factor throughout my project, which enabled

me to complete my project so

efficiently and effectively. I also thankful to Ms. SUNAYANA BANSAL

(Branch Executive, Unicon Investment Solutions Ajmer) for her

valuable support thought my Training at UNICON.

I wish to express my respectable thanks and gratitude to MAM

RANVIKA AND VARSHA MATHUR (Faculty of B.B.A.) theoretical

knowledge about the subject.

I feel immense pleasure to offer my thanks to faculty members, who co-

operated in analysis of data and helped me to understand some

behavioral aspects of consumers. I am very thankful to my friends who

directly and indirectly helped me in collection of data and material related

to the topic.

JAGRATI GURNANI


3/70

j

3

PREFACE

In BACHELOR OF BUSINESS ADMINISTRATION, Internship program

is an important part to give students an opportunity to have an experience

of practical field. Unless and until the student experience of the novelty of

practical work, their knowledge of what they study in theoretical courses

remains incomplete. The most important point in an Internship program is

that the students should spend their time in a true manner and with the

spirit to learn practical orientation of theoretical study framework.

This Internship is on my eight weeks practical training at UNICON

INVESTMENT SOLUTIONAJMER. I did training in Finance Field

which deals with potentiality of equity market.

In this Internship report I have tried to give details about the

POTENTIAL OF EQUITY MARKET AND AWARENESS OF

UNICON AMONG INVESTORS


4/70

j

4

DECLARATION

I hereby declare that the work incorporated in the present project entitled

POTENTIAL OF EQUITY MARKET AND AWARENESS OF

UNICON AMONG INVESTORS at UNICON INVESTMENT

SOLUTION- AJMER is my own work and is original.

This work in part or in full has not been submitted to any University for

the award of a degree or diploma

PLACE: AJMER

DATE :

JAGRATI GURNANI


5/70

j

5

CONTENTS

COMPANY PROFILE

1. ORGANIZATION & MANAGEMENT

2. PRODUCT & SERVICE

3. ACCOUNT OPENING

4. DEMAT PROCESS

5. DEMAT ACCOUNT

6. DIFFERENCE BETWEEN BANK ACCOUNT & DEMATACCOUNT

AN OVERVIEW ABOUT STOCK MARKET

1 What are Markets?

2 What are shares?

3 What is a stock exchange?

4 Who is a broker?

5 What is a Demat A/c?

6 Buying and selling of dematerialized securities

7 How to receive income from shares?

8 How to make investment decisions?

9How to track your investments? (Portfolio tracker)

OPPORTUNITIES AVAILABLE FOR FOREIGN

INVESTORS

RESEARCH & METHADOLOGY

SOURCES OF DATA COLLECTION


6/70

j

6

QUESTIONNAIRES

FINDINGS

CONCLUSION

SUGGESTION

BIBLIOGRAPHY


7/70

j

7

OBJECTIVESTo know the basics of stock market and its potentials.

To know the procedures and policies of Unicon and products

offered by the company.

To know the awareness of investors about Unicon and their

investment avenues.

To know the preference of customers in concern of various

investment products available in the market.


8/70

j

8

COMPANY PROFILE

Unicon has been founded with the aim of providing world class investing

experience to hitherto underserved investor community. The technology

today has made it possible to reach out to the last person in the financial

market and give him the same level of service which was available to only

the selected few.

We give personalized premium service with reasonable

commissions on the NSE, BSE & Derivative market through our Equity

broking arm Unicon Securities Pvt Ltd. and Commodities on NCDEX

and MCX through our Commodity broking arm Unicon Commodities

Pvt. Ltd. With our sophisticated technology you can trade through your

computer and if you want human touch you can also deal through our

Relationship Managers out of our 97 branch network spread across the

nation.

We also give personalized services on Insurance (Life &

General) & Investments (Mutual Funds & IPO's) needs, through our

Insurance & Investment distribution arm Unicon Insurance Advisors Pvt.

Ltd.Our tailor-made customized solutions are perfect match to different

financial objectives. Our distribution network is backed by in-house back

office support to serve our customer promptly.

The company, created to provide premium service with reasonable

commissions, currently maintains more than 40000 individual accounts.


9/70

j

9

Unicon distributes Insurance (Life & General) and Mutual Funds

through its subsidiary Unicon Insurance Advisors Pvt. Ltd. We

alsodistributes IPO's through the same entity. The objective here is to

offer our customers all the investments related products under same roof.

Unicon is staffed by financial and technology experts, unicon

provides a certified, skilled environment for individuals to receive

trading information and execute trades, both online and offline. The

company consists of over 2000 employees nationwide, including over

400 at the headquarters. Unicon employees work together as a team to

continue the tradition of excellent customer service and support.


10/70

j

10

ORGANISATION AND MANAGEMENT

Unicon is a professionally managed organization with a board

of directors consisting of eminent persons who represent various

fields. The board primarily focuses on strategy formulation, policy

and control, designed to deliver increasing value to shareholders

Mr. Gajendra Nagpal, Founder & CEO: Mr. Nagpal is

responsible for day to day running of the company. Amanagement graduate by qualification, Mr. Nagpal brings with

him over 14 years of experience in the stock market. Before

joining Unicon he has served at senior positions for 5 years with

Kotak securities at a regional level and Indiabulls securities for 4

years at national level assignments. Mr. Nagpal brings with him

the rich experience of building a retail broking network.

Mr. Ram M Gupta, Co-Founder & President: Mr. Gupta through

his aggression and dynamism brings energy to the team. He has

8 years of stock market experience behind him and is

responsible for driving the sales team. Mr. Gupta has held

senior level positions in Karvy stock broking and Indiabulls

Securities. Mr. Gupta is supported by a team of over 850

relationship mangers spread over 94 locations across the


11/70

j

11

country.

Mr. Sandeep Arora, Chief Operating Officer: Mr. Arora bringswith him over 11 years of experience of managing operations of

stock broking company. Mr. Arora before taking over as head of

operations at Unicon was responsible for managing the

operations of Indiabulls Securities Ltd. Mr. Arora is supported

by his team of over 400 people helping him to give world class

service to the clients.

Mr. Vikas Mallan, Chief Financial Officer: Mr. Mallan A

Chartered Accountant, Company Secretary and Cost

Accountant by profession. Mr. Mallan has over 14 years of

experience in the area of finance. Before joining Unicon he has

served at senior level positions with Rediff.com, Reliance

Telecom and Koshika Telecom. His experience includes a

Nasdaq listing of an Indian internet company and Head of

Finance of a leading Law firm. Mr. Mallan is headingDistribution / Mutual Fund initiative and is supported by 850

employees nationwide

Ms. Anjali MukhijaCCO: heads compliance. She brings with her12 years of experience in the stock markets. Her current job

profile includes broking operations, client relations & grievance

redressal, coupled with Public dealings. Prior to joining Unicon, she

was with the National Stock Exchange, Delhi Regional Office for 10

years and had held senior position for a brief period in a reputed

broking house.


12/70

j

12

Mr.Trinadh Kiran National Head(E-Broking):

is an MBA marketing professional from Aligarh Muslim University

and has

done 10 months research in Capital Markets from IIM-Ahmedabad.

He brings with him a total work experience of 7 years and has

worked with almost all big giants of capital market like India

Infoline, India Bulls and Net worth Stock Broking. He is associated

with Unicon since June 2005. He has extensive knowledge of Retail

Broking and expertise in E-Broking.

Mr.Vijay ChopraNational Head (Business Alliances): Mr. Vijay

Chopra is a management graduate from Indian Institute of Foreign

Trade, New Delhi. He has a illustrious professional track record of

spanning over 11 years wherein he has handled various assignments

at a senior levels with some of the best names in the Consulting,

FMCG & healthcare space. His forte has been supply chain

management, New Product Launches, Sales, Marketing, Product

management & Training. Mr. Chopra along with his team

handles over 300 business partner network which is spread over

the entire geographical spread of the country.

Mr.Ashish KukrejaHead-PCG: Has the responsibility of handling

PCG business with Unicon. He brings with him a wide industry

exposure and joined Unicon in July 2006 after rendering his services

to Kotak Securities, where he was taking care of franchisee business

and later started handling HNI desk. He is an MBA (finance) from

ICFAI Business School.


13/70

j

13

Ms. Divya Verma Kaur Head HR: is Country Head - HR and

Training. Ms. Divya brings with her 17.5 years of experience in

Human Resource and Training and her core expertise are designing

and implementing innovative HR strategies for employees

retention, establishing & stabilizing processes and handling effective

appraisal process linked with rewards & recognitions. Ms. Divya is

an effective communicator with strong leadership acumen. Her skill

set includes manpower budgeting, talent hirings, succession

planning, competency mapping, training/development planning,

formulating employee welfare programs and compensation

benchmarking.


14/70

j

14

PRODUCT AND SERVICES

Unicon customers have the advantage of trading in all the

market segments together in the same window, as we understand the

need of transactions to be executed with high speed and reduced

time.At the same time, they have the advantage of having all kind of

Insurance & Investment Advisory Services for Life Insurance,

General Insurance, Mutal Funds and IPOs also.

Unicon is a customer focused financial services organization

providing a range of investment solutions to our customers. We

work with clients to meet their overall investment objectives and

achievetheir financial goals. Our clients have the opportunity to

get personalized services depending on their investment profiles.

Our personalized approach enables clients to achieve their Total

Investment Objectives. Our key product offerings are as follows:


15/70

j

15

1. Equity Trading

2. Commodity Trading

3. PCG

4. NRI Services

5. Mutual Fund

6. Life Insurance

7. General Insurance

8. Depository Services

9. Portfolio Tracker

10. Backoffice

1) Equity Trading

Uniconoffers a unique feature where our customers get to trade

on NSE, BSE and Derivatives all on one screen. Unicon also

provides the facility to put orders over the phone through

Relationship Managers. You can always have access to our 97

branch offices located in the prime locations of the city, should

you wish to trade "walk in". Products offerings for Trading

2) Trade in CommodityAs the stock market takes a beating, commodity prices are soaring.

In times of high inflation, commodity futures can offer you the edge

that you were looking for. With a Unicon Trading Account, you can

trade in Commodity Futures from both MCX and NCDEX using a

single screen.


16/70

j

16

3) Unicon Depository Services offers dematerialization services as

a participant in Central Depository Services Limited (CDSL),

through its Depository operations. The company believes in

efficient and cost-effective and integrated service support to its

brokerage business. Unicon Securities Private Limited, as a

depository participant, will offer depository accounts for

individual investors as well as corporates which will enable them

to transact in the dematerialized segment, without any hassles.

4) Properties

At Unicon Investment Solutions, we assist our prestigious customers

in investing in the best properties in India, by offering them the most

lucrative real estate deals. We provide full fledged investment

solutions for residential as well as commercial properties in India,

which include services related to the purchase of properties,

documentation, renting and leasing, investment advisory services,

property valuation and assisting clients with home loans.

5) Unicon Offers The Power of Currency DerivativesCurrency derivative is a contract between the seller and buyer,

whose value is to be derived from the underlying asset, the currency

amount. A derivative based on currency exchange rates is a future

contract which stipulates the rate at which a given currency can be

exchanged for another currency as at a future date.


17/70

j

17

6) Back Office

Unicon through its online back-office aims to increase the

transparency and provides you the link to view the details of your

account onlinae anytime and anywhere.

7) Portfolio Management

The Portfolio Management Schemes of the Company offer

Discretionary Schemes (Unicon Optimizer & Unicon Growth) for

Individuals, Corporate Bodies, Partnership firms, Proprietors, Non

Resident Indians etc. The Company is registered with SEBI enabling

it to undertake Portfolio Management activities under a specific

license.

And so on..


18/70

j

18

Trade in with the Power of Unicon


19/70

j

19

ACCOUNT OPENING

The investor can open an account with any depository participant of

CDSL. An investor may open an account with several DPs or he may

open several accounts with a single DP. There are several DPs

offering various depository-related services. Each DP is free to fix its

own fee structure.

Investors have the freedom to choose a DP based on criteria like

convenience, comfort, service levels, safety, reputation and

charges. After exercising this choice, the investor has to enter into an

agreement with the DP. The form and contents of this agreement are

specified by the business rules of CDSL.

1. TYPE OF ACCOUNT

Type of depository account depends on the operations to be

performed. There are three types of Demat accounts, which can be

opened with a depository participant viz.


20/70

j

20

(a)Beneficiary Account

(b)Clearing Member Account and

(c)Intermediary Account.

2. DOCUMENT FOR VERIFICATION

For the purpose of verification, all investors have to submit the

following documents along with the prescribed account opening

form.

2.1 PROOF OF IDENTITY

A beneficiary account must be opened only after obtaining a proof of

identity of the applicant. The applicant's signature and photograph

must be authenticated by an existing account holder or by the

applicant's bank or after due verification made with the original of

the applicant's

Valid passport,

Voter ID, driving license


21/70

j

21

PAN card with photograph;

And further,

2.2 PROOF OF ADDRESS

The account opening form should be supported with proof of

address such as :

Verified copies of ration card

Passport

Voter ID

PAN card

Driving license

Bank passbook.

An authorized official of the Participant, under his signature, shall

verify the original documents. In case any account holder fails to

produce the original documents for verification within the aforesaid

period of 30 days, it must be immediately brought to the notice of

CDSL.


22/70

j

22

Failure to produce the original documents within

the prescribed time would invite appropriate action against such

account holders, which could even include freezing of their accounts.

STEPS FOLLOWED TO OPEN AN ACCOUNT


23/70


24/70

j

24

Demat Account

Definition

Demat account is a safe and convenient means of holding

securities just like a bank account is for funds. Today,

practically 99.9% settlement (of shares) takes place on demat

mode only. Thus, it is advisable to have a Beneficiary Owner

(BO) account to trade at the exchanges.

Bank Account Vs Demat Account

S.

No.

Basis Of

DifferentiationBank Account Demat Account

1.Form of

Holdings/DepositsFunds Securities

2. Used forSafekeeping of

money

Safekeeping of

shares

3. Facilitates

Transfer of money

(without actually

handling money)

Transfer of shares

(without actually

handling shares)

4. Where to open A bank of choiceA DP of choice

(can be a bank)

5.Requirement of

PAN NumberNot Mandatory

Mandatory

(effective from

April 01, 2006)

6.Interest accrual

on holdings

Interest income is

subject to the

No interest

accruals on


25/70

j

25

applicable rate of

interest

securities held in

demat account

7.Minimum balance

requirement

AQB* maintenance

is specified for

certain bank

accounts

No such

requirement

8.Either or Survivor

facilityAvailable Not available

*AQB - Average Quarterly Balance

S.

No.

BASIS OF

SIMILARITYPARTICULARS

1.Security and

Convenience

Both are very safe and convenient

means of holding deposits/securities

2. Number of accounts

No legal barrier on the number of

bank or demat accounts that can be

opened

3.Transfer of deposits

(funds or securities)

Funds/securities are transferred

only at the instruction of the account

holder

4.Physical transfer of

money/securities

Physical transfer of

money/securities is not involved

5. Nomination Facility Available


26/70

j

26

Stock Marcket

Equity MutualFunds Commodities


27/70

j

27

An Overview about Stock Market

9 What are Markets?

10What are shares?

11What is a stock exchange?

12Who is a broker?

13What is a Demat A/c?

14Buying and selling of dematerializedsecurities

15How to receive income from shares?

16How to make investment decisions?

17How to track your investments? (Portfolio tracker)


28/70

j

28

1. What are Markets?

A stock market is a market for the trading of company stock/

shares, and derivatives. This includes securities listed on a

stock exchange as well as those only traded privately. Market

is a place where buyers and sellers of securities can enter into

transactions to purchase and sell shares, bonds, debentures

etc.

Primary markets:

The primary market is that part of the capital markets that

deals with the issuance of new securities.

Secondary markets:

Thesecondary marketis the financial market for trading of

securities that have already been issued in an initial private or

public offering. In the secondary market, securities are sold

by and transferred from one investor or speculator to another.
http://www.moneycontrol.com/pehlakadam/secondarymarkets.phphttp://www.moneycontrol.com/pehlakadam/secondarymarkets.phphttp://www.moneycontrol.com/pehlakadam/secondarymarkets.phphttp://www.moneycontrol.com/pehlakadam/secondarymarkets.php


29/70

j

29

2. What are shares? A share is one of a finite number of equal portions in the

capital of a company, entitling the owner to a proportion of

distributed, non-reinvested profits known as dividends and to

a portion of the value of the company in case of liquidation.

Equity is a share in the ownership of a company. It represents

a claim on the companys assets and earnings. As you acquire

more stock, your ownership stake in the company increases.

The terms share, equity and stock mean the same thing and

can be used interchangeably.

3. What is a stock exchange?

A stock exchange, share market or bourse is a corporation or

mutual organization which provides facilities for stockbrokers and traders, to trade company stocks and other

securities.

The Bombay Stock Exchange Limited, or BSE has a nation-wide reach

with a presence in 417 cities and towns of India. Its index, or market

indicator is known as the Sensex.


30/70

j

30

The S&P CNX Nifty, or simply Nifty, is the leading index for large

companies on the National Stock Exchange of India. It consists of 50

companies representing 24 sectors of the economy, and representing

approximately 47% of the traded value of all stocks on the National Stock

Exchange of India.


31/70

j

31

INTRODUCTION: STOCK MARKET

One of the major factors causing todays volatility is the unanimity

in investors inclination towards new economy stocks and their shunning

of old economy stocks. This has led to a huge polarization in the

markets. Todays markets are characterized by large investment flows

into companies with emerging businesses -- which typically have low

floating stock -- leading to wild price swings.

Volatility has gone up as actively managed funds churn their

portfolios more often. Momentum investing by day traders and

fund managers exacerbates this. Soon, stocks are not bought on the

basis of their fundamental value but on the greater fool theory.

Unrealistic investor expectations driven by the recent history of the

boom in IT stocks is a cause for concern: now, the quality of the stock

and fundamentals are ignored in a market characterized by daily

assessment of profits and losses. Recent price history clouds the

investors minds so much that they start treating that price as the real

value of the stock and dont take a longer perspective of the company.


32/70

j

32

The new economy stocks are a different breed. There is

a lot of theme or concept investing taking place in these stocks now.

It is difficult to quantify the future of the businesses and put a value to

those.

To discount all the future cash flows and put a value to the company is

passe and PEG ratios based on the next couple of years earnings is in the

near term high growth rate in these businesses is overshadowing the

pricing of risk and technological obsolescence for a particular company.

Market volatility is a sign that investors are unsure of how to value these

stocks. In the minds of investors, there is a battle going on between this

great new paradigm and the valuations of the stocks. In such a scenario,

mood swings between hope and fear cause volatility.

The volatility in new economy stocks reflects systemic changes taking

place in the underlying businesses. In the boardrooms of companies,

long gone are the months of planning and debate on capital allocation,

mergers/acquisitions and joint ventures.

In the Internetage ,a three-month delay can be the difference between

success and failure. Also, we are now in an age when companies can

think of becoming multinationals in a short span (e.g. Yahoo, Amazon),

when established age old companies see their fortunes dip very fast (e.g.

Britannica) and when companies can go boom and then come tumbling

down in a couple of years (e.g. Netscape). When businesses are


33/70

j

33

witnessing such rapid stratospheric booms and busts, it is natural to

expect their stocks to be volatile.

In times of extreme volatility, investments in diversified equity funds

offer a hedge against stock specific risk. The regulator shouldleave

the pricing of the stocks to markets and its play on fear and greed, but

should come down heavily on rigging induced volatility. It should clamp

down on insider trading and selective information leaks. Information

dissemination when done timely and uniformly to all investors would

bring in transparency and should help arrest volatility to some extent.

The margin requirement in the new economy stocks should be fixed at a

high level, as investors will have to learn to live with high volatility in

these stocks.


34/70

j

34

ABOUT BOMBAY STOCK EXCHANGE

(BSE)

INTRODUCTION

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 its 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 Stock Exchange, Mumbai (BSE) is generally referred to as theGateway to the capital market in India. It is a lynchpin of the Indian

Capital market. Its governing board and administration are keenly aware

of the future needs of the exchange to maintain its lead role. As Indian

economy is opening up, the Exchange has brought its operations at par

with international standards. It is poised to take advantage of changes in

Indian economic deregulation to expand the market and make the

security market, in India, more transparent and more liquid.

However, the objectives and the role of the Stock Exchange, Mumbai

has remained the same as enunciated by our founding fathers and given

to us as a mandate in 1887 through the charter.


35/70

j

35

1. To safeguard the interest of investing public having dealings on the

Exchange and the members.

2. To establish and promote honorable and just practices in securities

transactions.

3. To promote, develop and maintain a well-regulated market for

dealing in securities.

4. To promote industrial developments in the country through

efficient resource mobilization by way of investment in corporate

securities.

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.

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

retire every year by rotation), an Executive Director, three Government

nominees, a Reserve Bank of India nominee and five publicrepresentatives, is the apex body, 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.


36/70

j

36

The Executive Director as the Chief Executive Officer is

responsible for the day-to-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 terms 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

Exchanges. However, at centres 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.

In terms of organization structure, the Board formulates larger

policy issues and exercises over-all control. The committees constituted

by the Board are broad-based. The Managing Director and a

management team of professionals manage the day-to-day operations of

the Exchange.

The Exchange has a nation-wide reach with a presence in 417

cities and towns of India. The systems and processes of the Exchangeare designed to safeguard market integrity and enhance transparency in

operations. During the year 2005-2006, the trading volumes on the

Exchange showed robust growth.

The Exchange provides an efficient and transparent market for

trading in equity, debt instruments and derivatives. The BSE's On Line


37/70

j

37

Trading System (BOLT) is a proprietary system of the Exchange and is

BS 7799-2-2002 certified. The surveillance and clearing & settlement

functions of the Exchange are ISO 9001:2000 certified.


38/70

j

38

ABOUT NATIONAL STOCK EXCHANGE (NSE)

THE ORGANISATION

The National Stock Exchange of India Limited has genesis in the report

of the High Powered Study Group on Establishment of New Stock

Exchanges, which recommended promotion of a National Stock

Exchange by financial institutions (FIs) to provide access to investors

from all across the country on an equal footing. Based on the

recommendations, NSE was promoted by leading Financial Institutions

at the behest of the Government of India and was incorporated in

November 1992 as a tax-paying company unlike other stock exchanges

in the country.

On its recognition as a stock exchange under the Securities Contracts

(Regulation) Act, 1956 in April 1993, NSE commenced operations in

the Wholesale Debt Market (WDM) segment in June 1994. The Capital

Market (Equities) segment commenced operations in November 1994

and operations in Derivatives segment commenced in June 2000.


39/70

j

39

Introduction of the Demat Segment

The Exchange has commenced trading in the

Dematerialized (Demat) segment with effect from December 29, 1997

where there is no physical delivery of securities as in the physical

segment. Trading in the Demat segment is on a Rolling Settlement basis

(T+5) where T stands for Trade Day. The pay-in and payout for the

transactions in this segment are both conducted on a single day. The

Pay-in & Pay-out for transactions executed on Monday is conducted

on the following Monday, i.e., corresponding day in the following week.

Auction session for shortages in demat segment is conducted on BOLT on

the day after pay-in/pay-out. The pay-in / pay-out (money part) takes

place through computerized posting of debits and credits in the

members bank accounts as in the case of physical segment.

With effect from April 6, 1998, deliveries in the demat mode are

permitted in the physical segment. This is so because sellers are allowed

to give delivery in demat or electronic form. As of today, this is

applicable to 278 scrips. As such, a break-up session is scheduled every

Monday where members may mark the mode of delivery, i.e., physical

or demat. They, however, have an option to change the mode of delivery

till the pay-in day, i.e., Thursday.


40/70

j

40

4. Who is a broker?

A stockbroker is person who is licensed to trade in shares. Brokers

also have direct access to the sharemarket and can act as your agent

in share transactions. For this service they charge a fee. They can

also offer additional services like advice on shares, debentures,

government bonds and listed property trusts and non-listed

investment options (cash management trusts, property and equity

trusts. (more...)
http://www.moneycontrol.com/pehlakadam/gettingstarted.phphttp://www.moneycontrol.com/pehlakadam/gettingstarted.phphttp://www.moneycontrol.com/pehlakadam/gettingstarted.phphttp://www.moneycontrol.com/pehlakadam/gettingstarted.php


41/70

j

41

5. What is a Demat A/c?

Investors who wish to trade in the market need to have a

dematerialized, or demat, account. In India, the government has

mandated two entities National Securities Depository, or NSDL,

and Central Depository Services (India), or CDSL to be thecustodian of dematerialized securities. (more...)


42/70

j

42

6.Buying and selling of Dematerialised securities

What is the procedure for selling dematerialized

securities?

The procedure for selling dematerialized securities is very

simple. After you have sold the securities, you would instruct

your DP to debit your account with the number of securities

sold by you and credit your broker's clearing account. This

delivery instruction has to be given to your DP using the

delivery instruction slips given to you by your DP at the time

of opening the account. (more...)

How can I purchase dematerialized securities?

For receiving demat securities you may give a one-time

standing instruction to your DP. This standing instruction can

be given at the time of account opening or later. Alternatively,

you may choose to give separate receipt instruction every

time some securities are to be received. (more...)
http://www.moneycontrol.com/pehlakadam/gettingstarted.phphttp://www.moneycontrol.com/pehlakadam/gettingstarted.phphttp://www.moneycontrol.com/pehlakadam/gettingstarted.phphttp://www.moneycontrol.com/pehlakadam/gettingstarted.phphttp://www.moneycontrol.com/pehlakadam/gettingstarted.phphttp://www.moneycontrol.com/pehlakadam/gettingstarted.php


43/70

j

43

7. How to receive income from shares?

We invest in shares to make money either through a shares

capital growth, i.e. the amount by which the share price increases in

value over time, or through the dividends it pays to its shareholders.

Dividends are payments made by companies to shareholders from

their profits. (more...)


44/70

j

44

8.How to make investment decisions?

The stock market has, perhaps, the most exciting investment

opportunities for the investor community. At the same time, it could

be unnerving and scary. In fact, equity investment has always

remained a big challenge, not only for retail but institutional

investors, too.

In short, investing in equities can be a difficult proposition for retail

investors. However, equity must form a part of every investors

portfolio. The proportion could vary, depending on the investors

age, monetary requirements, risk appetite, etc.

To cope with volatility, it is important to have a disciplined and

systematic approach to equity investment. Set your own rules and

more importantly, follow them religiously. Indeed, the mantra for

successful equity investment is a well thought-out, disciplined

investment strategy.

A long-term monetary commitment, adherence to discipline in

investment and decisions based on company fundamentals are

essential ingredients for successful equity investment.(more...)


45/70

j

45

9. How to track your investments? (Portfolio tracker)

The Portfolio Manager tracks and monitors all your investments,

cash flow and assets, through live price updates. Investments like

equity, mutual funds, assets, cash flows, borrowing and more can all

be tracked. Displayed in real time, it is the most up-to-date and

precise indicator of your net worth! With the Portfolio Manager,

you can not only view your investments at each stage, but can use

this record of your holdings to base any future investments

decisions.

The Portfolio Manager comes along with some useful tools to gain

useful insight of volatile markets. These tools help you to track thetrends of your current investments as well as somestocksthat have

caught your eye.
http://www.moneycontrol.com/india/bestportfoliomanager/stocks/mutualfunds/loginportfoliohttp://www.moneycontrol.com/india/bestportfoliomanager/stocks/mutualfunds/loginportfoliohttp://www.moneycontrol.com/india/bestportfoliomanager/stocks/mutualfunds/loginportfoliohttp://www.moneycontrol.com/india/bestportfoliomanager/stocks/mutualfunds/loginportfoliohttp://www.moneycontrol.com/india/bestportfoliomanager/stocks/mutualfunds/loginportfoliohttp://www.moneycontrol.com/india/bestportfoliomanager/stocks/mutualfunds/loginportfoliohttp://www.moneycontrol.com/india/bestportfoliomanager/stocks/mutualfunds/loginportfolio


46/70

j

46

The Portfolio Tracker

Track these things.

Transaction History

Watch list

News

Messages

Asset Spread

Asset Risk

Industry Classification

Quarterly Data

Best Worst Investments

Financial Data

Consolidated Stocks

Consolidated MF's


47/70

j

47

OPPORTUNITIES AVAILABLE FOR

FOREIGN INVESTORS

DIRECT INVESTMENT

Foreign companies are now permitted to have a majority stake in

their Indian affiliates except in a few restricted industries. Incertain specific industries, foreigners can even have holding upto

100 percent.

INVESTMENT THROUGH STOCK EXCHANGES

Foreign Institutional Investors (FII) upon registration with

the Securities and Exchange Board of India (SEBI) and the

Reserve Bank of India (RBI) are allowed to operate in Indian

stock exchanges subject to the guidelines issued for the purpose

by SEBI.

Important requirements under the guidelines are as under:

1 Portfolio investment in primary or secondary markets will

be subject to a ceiling of 30 percent of issued share capital for

the total holding of all registered FII's. In any one company

an FIIholding is subject to a ceiling of 10 percent of the


48/70

j

48

total issued capital. However, in applying

the ceiling of 30 percent the following are excluded:

Foreign investment under a financial collaboration, which is,

permitted upto 51 percent in all priority areas.

Investment by FII's through offshore single/regional funds,

GDR's and euro convertibles.

2 Disinvestment is allowed through a broker of a Stock Exchange.

3 A registered FII is required to buy or sell only for delivery. It is not

allowed to offset a deal. It is also not allowed to sell short.


49/70

j

49

RESEARCH METHODOLOGY

The study will be carried on in a proper planned and systematic

manner.

This methodology includes

(i) Familiarization with the Stock Exchanges

(ii) Observation and collection of data.

(iii) Analysis of data.

(iv) Conclusion and suggestion based on analysis.

SOURCES OF DATA COLLECTION:The primary as well as the secondary sources will be used for collection

of data. In primary source of data collection the interview schedule

opinion survey will be used and in secondary source of data collection

relevant records, books, diary and magazines were used.


50/70

j

50

QUESTIONNAIRE

NAME : ________________________ Telephone No. _______________

OCCUPATION: ____________________________

INCOME LEVEL: Below 1 Lac 1-2 Lac 2-5 Lac

More than 5 Lac

Q1. Which type of investment you prefer ? (GIVE RANKS)

a. Equity-commodity ..

b. Fixed deposit(FD) ..

c. Insurance ..

d. Property ..

e. Mutual Fund ..

Q2 Do you have DEMAT ACCOUNT ?

YES NO

Q3. Have you ever heard about UNICON INVESTMENT SOLUTION ?

YES NO


51/70

j

51

Q4. How often you trade ?

Daily Weekly Monthly Yearly

Q5. Which mode do you use for investment ?

Online Offline Both

Q6. Are you aware of various product and services provided by UNICON

? (Give answer in YES or NO).

Equity

Commodity

Insurance

Mutual fund

Property Broking

PMS

Fixed Income

Wealth Management .

Q7 For how long you can invest in EQUITY ?

Less than 1 Year

1-3 Years

More Than 3 Years


52/70

j

52

Q8. Why do you like to invest in EQUITY market ?

Saving Knowledge High Returns Liquidity

Q9. Source of investment in EQUITY ?

Agent Self Friends / Family members Media

Q10. What product or service influences your choice of broking house?

Brokerage Staff Efficiency Office Environment

Timely Response Office Location Brand Name

AND GIVE RANKS TO UNICON .

Brokerage

Staff Efficiency

Office Environment

Timely Response

Office Location

Brand Name

Q11 Satisfaction Level of UNICON ?

Satisfy Highly Satisfy Unsatisfied .

Q12. Is UNICON The Best Company ?

Yes No Cant Say


53/70

j

53

0%

47%

43%

10%

INCOME LEVEL

BELOW 1 LAC 1-2 LAC 2-5 LAC MORE THAN 5 LAC


54/70

j

54

Finding :

The above table reveals that higher income levels are giving more

preference to invest in equity where as lower income levels given more

preference to invest in bank deposits and Equity is also having its

preference among people investment choices

93%

7%

Q1. DO YOU HAVE DEMAT ACCOUNT?

YES NO


55/70

j

55

Finding :

It implies that demat account is very popular and a significantmember of client interviewed, have their own demat account.

0

2

4

6

8

10

EQUITY -

COMMODITY

FIXED DEPOSIT INSURANCE PROPERTY MUTUAL FUND

Q2. WHICH TYPE OF INVESTMENT YOU

PREFER?


56/70

j

56

90%

10%

Q3. HAVE YOU EVER HEARD ABOUT UNICON

INVESTMENT SOLUTION?

YES NO


57/70

j

57

Finding :

1.44 percent of investors are preferredaffects portfolio of theinvestor ,invest in long-term avenues where as 34 per cent of

investorsare preferred to 36 per cent of the investors-invest in both

both long term and short term avenues , are preferred to invest in

monthly and 26 % of investors preferred to invest in 52 per cent of

the investors are investing on the basis of-quarterly basis.

25%

44%

22%

9%

Q4. HOW OFTEN YOU TRADE?

DAILY WEEKLY MONTHLY YEARLY


58/70

j

58

Finding :

As the study show, internet trading is not very popular among

people. So, a huge member of people use the OFFLINE mode of

trading.

0 5 10 15 20 25

ONLINE

OFFLINE

BOTH

Q5. WHICH MODE DO YOU USE FOR

INVESTMENT ?

Series1


59/70

j

59

Q6. Are you aware of various product and services

provided by UNICON ? (Give answer in YES or NO).

Equity

Commodity

Insurance

Mutual fund

Property Broking

PMS

Fixed Income

Wealth Management .

Finding :

From the sample data, we find that only equity, commodity and

insurance are popular and investors are not aware of any other

product of company.


60/70

j

60

Finding :

From the study, we found both long Term and short Term equity

investment.

108

12

LESS THAN 1 YR 1-3 YRS MORE THAN 3 YRS

Q7. FOR HOW LONG YOU CAN INVEST IN

EQUITY MARKET ?


61/70

j

61

Finding :

The objective of investment in equity market is high return and

liquidity and these two factors are attracting most people for

investing in equity market. A very less number of people invest to get

knowledge and purpose of saving.

3% 3%

57%

37%

WHY DO YOU LIKE TO INVEST IN

EQUITY?

SAVING KNOWLEDGE

HIGH RETURNS LIQUIDITY


62/70

j

62

Finding :A major source of investment in equity in Media and people

prefer to take advice of any agent rather than family and self investment.

0

2

4

6

8

10

12

14

AGENT SELF FRIENDS/ FAMILY MEDIA

Q9. SOURCE OF INVESTMENT IN EQUITY?


63/70

j

63

Q10. What product or service influences

your choice of broking house?

Brokerage Staff Efficiency Office

Environment

Timely Response Office Location Brand

Name

AND GIVE RANKS TO UNICON .

Brokerage

Staff Efficiency

Office Environment

Timely Response

Office Location

Brand Name

Finding :

The sample data implies that brokerage , office location, timely

response mainly influence the choice of broking house for investors

and Unicon gets the top ranks in office location, office environment,

timely response, brokerage and staff efficiency.


64/70

j

64

Finding :

People are normally less satisfied with Unicon

SATISFY

33%

HIGHLY SATISFY

7%

UNSATISFIED

60%

Q11. SATISFACTION LEVEL OF UNICON?


65/70

j

65

Finding :

We could not get the proper result of this question as Cant Say

was the answer selected by most of people

3%

10%

87%

Q12. IS UNICON THE BEST COMPANY?

YES NO CANT SAY


66/70

j

66

CONCLUSIONS

The study takes a random sample 30 (thirty) prospective clients, that

denotes the whole population of investing community which is limited to

the extent of accurate results.

The study also drawn an important conclusion that the equity market is a

popular source of investment and people invest for their higher returns,

keeping in mind both long term and short term investment. Investors are

aware about Unicon but not all products of Unicon .Equity and

Commodity are popular.

Investors prefer equity more than commodity. Internet- based trading i.e.

online trading is getting its place but due to shortage of time and service

class investors they all prefer offline trading or telephonic order placement

through their agents or broker.

Unicon is having advantage of its location but requires competitive rates

of brokerage and infrastructure.


67/70

j

67

SUGGESTIONS

Unicon should work on its marketing activities and client awareness

programmes should be conducted from time to time about various

products and their potentiality for investors.

Regular SMS for investment opportunities and for updates to the investorsregarding their investments.


68/70

j

68

BIBLIOGRAPHY

Macroeconomics Theory and Policy: Gardner Ackley, MacMillan

Publishing Co., Inc. New York, International Edition, 1978.

The Rise and the fall of the big bull, Business World, April 16,

2004, pp. 18-26.

Indias Stock Markets, Business Today

Will BSE Survive, CFA, August 2004, pp. 24-28.

Dalal Street, Outlook

Valueline, May 2007 July 2007 issues

Business Standard, July 2007


69/70

j

69

WEBSITES:

www.nseindia.com

www.bseindia.com

WWW.indiabulls.com

www.indiaweekly.com

www.indiainfoline.com

www.CDSL.com

www. investopedia.com

www. Uniconindia.com

Valueline, May 2007 July 2007 issuesBusiness Standard, July 2007

Research Reports

Unicon research report

Book

Fundamental Statistics, by Goon, Gupta & Dasgupta, Vol. 2

Marketing Research, by Kotler


70/70

j

jagrati - final report submitted to h.o

Documents