A PROJECT REPORT ON UNDERSTANDING AND LEARNING BUSINESS OF STOCK BROKING HOUSE AT ANGEL BROKING LIMITED PROJECT REPORT PRESENTED

TO MR. BHAVIN PANDYA, FACULTY MEMBER S.V.INSTITUTE OF MANAGEMENT STUDIES, NORTH GUJARAT UNIVERSITY (KADI). ON: DECEMBER 1 T H , !!". IN PARTIAL FULFILLMENT FOR THE A#ARD OF THE DEGREE OF MASTER OF BUSINESS ADMINISTRATION (M.B.A.) SUBMITTED BY BHAVIN. S. SHAH (ROLL NO $%)

ACKNO#LEDGEMENT
My indebtedness and gratitude to many individuals, who have helped me shape this project, cannot be adequately conveyed in a few sentences. I would like to thank Mr.Nikhil Da ani !"ranch Manager# for giving me an opportunity to do my project at $N%&' "()*IN% 'IMI+&D and helping me to understand the practical aspects of ,tock Markets "usiness. I am very grateful to M(,.$N*I+$ -$+&' . M(.-($*&,/ ,/$/ for helping me in learning (isk Management. MI,,. *)M$' *$N,$($, for helping me in understand Demat and "ack office operation M(./I($* ,/$/, M(.D$0&,/ "/$1,$(, ,N&/$' -2()/I+, M(./I(&N ,/$/ for making me understand the process of Dealing . 3ompliance. M(.($*&,/ %$44$( . M(.+$NM$5 "&'$NI for the 6inancial +ransaction M( ')M$,/ +/$**$( for Marketing. M(.M2*&,/ ,IN%/ for helping in understanding of +echnical $nalysis M(.*&D$( "/$++ for the Information +echnology without their hole hearted cooperation support and encouragement this project would have not been possible.

E&ECUTIVE SUMMERY
7/5 ,&3)ND$(5 &82I+5 ,+)3*M$(*&+ )N'5
$s it is one of the '()(*+,+) and -().*+,+) to the +/.0.*1 of the C.20,)1. Its one of the most /.*'3+4 506+7,*+0, (6+02+. .3urrently 7+)65/+ 7+/,.) is in boom like insurance sector, I+ sector, banking sector, "-) sector, telecom sector and stock market. )ne of the 8598+7, '(5: )+,2)07 is there in this market, which is 9 :; < annually from the last => years. In /.*'()+: to the safest bank deposit, which has came down ?@< from := < to round about A <. ,o there is huge potential in this market. In over all world use there B@ <C>@< of GDP in this market while in India there is just =< C B< usage so definitely there is huge potential in this market +ill know this market was been operated ,)(:5,5.0(331 but now as there is (;()+ 0+77 in the traders . investors this market need well <2(35=5+:, >0.;3+:9+(-3+ ').=+775.0(37. 3urrently and in near future there is 829+ 78.),(9+ .= ').=+775.0(37 who is (;()+ .= 3(;7, )23+7 (0: )+923(,5.0, 20:+)7,(0:509 .= +<25,1 *()>+, (0: -).>509 =5)*7. +o secure the ?.- (, *(0(9+*+0, /():+) as there is best opportunity in this field.

CONTENTS

: +I+'& -$%& = $3*N)'&D%&M&N+ B &0&32+I1& ,2MM&(5 > 3)N+&N+, ? IN+()D23+I)N +) M$(*&+ A DI66&(&N+ ,&%M&N+ )6 ,+)3* M$(*&+ D IN+()D23+I)N +) DI66+&N+ -$(+I3I-&N+ IN ,+)3* M$(*&+ ; IN+()D23+I)N +) DI66+&N+ ,+)3* &03/$N%&, E %($-/, )6 ,&N,&0 . NI6+5 :@ +&3/NI3$' $N$'5,I, )6 +/& %($-/, :: (&%2'$+)(5 ")$(D )6 M$(*&+ := 3)M-$NI&, -()6I'& $N%&' "()*IN% '+D :B 3)M-I+I+)(, -()6I'&, :B.: M)+I'$' ),7$' ,&32(I+I&, :B.= *I)+$* ,&32(I+I&, :B.B I3I3I DI(&3+ :> DI66&(&N+ D&-$(+M&N+ )6 ,+)3* "()*IN% /)2,& :>.: /2M$N (&,)2(,&, D&-$(+M&N+ :>.:. : (&3)MM&ND$+I)N :>.= 6IN$N3& D&-$(+M&N+ :>.=. : (&3)MM&ND$+I)N :>.B M$(*&+IN% D&(-$(+M&N+ :>.B. : M$(*&+IN% ,+(I+&(%I&, :>.B. = ,-&3I$' $,,INM&N+, :>.B. B (&3)MM&ND$+I)N :>.> (I,* M$N$%&M&N+ D&-$(+M&N+ :>.>. : (&3)MM&ND$+I)N :>.? "$3*)66I3& D&-$(+M&N+ :>.?. : (&3)MM&ND$+I)N :>.A D&-),I+)(5 -$(+I3I-$N+ .D&M$+ D&-$(+M&N+

OBJECTIVE OF THE PROJECT

TO UNDERSTAND THE BUSINESS OF STOCK BROKING AND TO MAKE SURE THAT AS A PROFFESSIONAL I SECURE A POSITION TO APPLY THE PROFFESSIONAL AND SCIENTIFIC KNOL#LEDGE I HAVE AC@UIRED THRU MBA DEGREE

INTRODUCTION TO MARKET
CAPITAL MARKETS 3apital Market provides the resources needed by medium and long scale industries for investment purpose while the money market provide the recourses for working capital needs.
3apital Market

-rimary Market

,econdary Market !,tock Market# 'isting +rading -ractices of ,ettlements . 3learing

-ublic (ight "onus -rivate Issue Issue Issue -lacement

-layers 3ompanies !issuers#

)perators Instruments

Intermediates !merchant banks ,6II, "rokers

Interest (ates

Investors !-ublic#

-rocedures

PRIMARY MARKET 3ompanies in order to meet the financial requirements of its projects raises capital through issue of securities !shares .debentures# in the primary market. SECONDARY MARKET +he secondary market is that segment of the capital market where the outstanding securities !securities already issued# are traded. 6rom the investors point of view the secondary market imparts liquidity to the long term securities held by them by providing an auction market for these security. +he secondary market operates through the medium of 7,./> +4/8(09+7, which regulates the trading activities in this market and ensures a measure of safety and fair dealing to the investors

DIFFERENT SEGMENT IN STOCK MARKET

,econdary Market

3ash Market

Derivatives Market

6uture "uyer (ight +o "uy !3$''#

)ptions ,eller )bligation +o "uy !-2+#

+o ,ell +o ,ell !-2+# !3$''#

FUTURE MARKET 6uture contracts are highly uniform and well specified commitments for carefully described stocks to be delivered at a certain time and in certain manner. it also specifies the quantity and quality of the stocks that can be delivered to fulfill the futures contract. +he quality specifications became less relevant in case of futures on interest rates or currencies. OPTION )ption is a contract that confers the right but not an obligations to the holder to buy !call option# or to sell!put option# an underlying asset !the asset may be a stock, currency, commodity, financial instrument or a futures contract#at a price agreed on specific date or by a specific e piry date. +he seller has the obligation to fulfill the contract if the buyer wishes to e ercise the option for which a premium is paid

INTRODUCTION TO STOCK E&CHANGES PARTICIPANTS

STOCK E&CHANGES

+he stock e changes is an auction market in shares and other securities and is mainly chastised by -233 and a -+(). $ BULL is the buyer in the market he always takes an optimistic view of the market $ BEAR on the other hand is the seller he is basically a pessimist and always considers that the things have reached its peak. /e believes in selling at the sight of minimum of profits he some times sells even without owning the shares. +his maneuver is reffede>d to as a S8.), S(3+. HEDGERS /edging is an act in which investors seeks to protect a position of anticipate position in the 7'., market by using an opposite position in :+)56(,56+7 the parties which perform hedging are known as hedgers. SPECULATORS ,peculators are basically traders who enter the in the market with a view of making profit from the subsequent price movements they do not have any risk to hedge, in fact they operate at a high level of risk in anticipation of profits. ARBITRAGEURS +he act of obtaining risk free profits by simultaneously buying and selling similar instruments in different markets is known as arbitrage the person who does this activity is referred to as arbitrageurs

INTRODUCTION TO DIFFRENT STOCK E&CHANGES

HISTORY OF BSE (BOMBAY STOCK E&CHANGE) +he ",& is the premier or ape stock e change in India .it is the biggest in siFe in terms of the amount of fresh capital raised, secondary market turnover and capitaliFation and the total listed companies and their paid up capital. +i is also the oldest market and has been recogniFed permanently, while the recognition for other e changes is renewed every ?years. Its business is no longer confined to Mumbai alone at the end of :EED it is spread all over India. +he trading in securities has been in vogue in India since :DEB. +he earliest dealings were in loan securities of the &ast India company .T8+ BSE #AS ESTRABLISHED IN 1A%B. +/& ",& member ship was :(s. in:;?D it increases to (s ? in :;DD (s :@@@ in :;EA to (s. B crore in :EE= was about = core in :EED. ",& has 357,+: *.)+ ,8+0 1!!!! /.*'(05+7 in it now all the transaction is online and computeriFed. HISTORY OF NSE (NATIONAL STOCK E&CHANGE) +he National ,tock & change is IndiaGs latest bourse. $fter the regional stock e changes. ItGs fully computeriFed but unlike it is not confined to scattered pockets and has a national reach through satellite linkage 'ike the ",& only members conduct transactions but professionals who do not have a stake in the system run it. +he idea of forming N,& was conceived by late Mr. M.4. -herwani who was then the chairman of National /ousing "ank. T8+ ,)(:509 .0 NSE /.**+0/+: ;5,8 :+-, 507,)2*+0,7 =.)* J20+ "!,1CC$. +he main objective of the N,& is to provide speedy transactions, fast settlement and to benefit the small investor who often fined it difficult to sell shares at ",&

TECHNICAL ANALYSIS OF NSE D BSE In the bottom are of =;=@ HB@@@ the valuation of the stocks were so cheap that some value based buying started emerging slowly . steadily the buying got reflected on the charts as one can see. +he ,ense .Nifty started forming higher tops . higher bottoms . we can observe a support trendline getting formed on the charts every time the prices dipped to the support trendline fresh buying emerged the uptrend lasted till the process were above this line once the prices broke below the line it signaled the culmination of the uptrend we can see how the prices since then have been getting knocked down .on :Dth May the bearishness reached the cresando as the market at one point of timewas down by ;@@ oddCpoints after :Dth things are trying to stabiliFe . ,533 ,8+ ,5*+ ;+ 8(6+ ,857 3.;+) ,.' 3.;+) -.,,.* =.)*(,5.0 /.0,502509 506+7,.)7 ()+ (:657+: ,. 7,(1 (;(1 =).* *()>+,

REGULATORY BOARDS RBI (THE RESERVE BANK OF INDIA) +he (eserve "ank of India is considered as nerve center in India monetary system. It was established on :st $pril :EB? under +he (eserve "ank of India $ct .it was a private shareholders institutions till:E>D. +he band was nationaliFed in :E>;2nde the ("I $ct :E>;, immediately after second world war the central bank all over the world were nationaliFed, secondly to control inflation that was prevailing since :EBE. $nd thirdly to embark upon a program of economic development and growth in the country. ,ince its inception, the ("I is guiding monitoring, regulating, promoting and controlling the Indian financial system .the ape bank was given powers to regulate the issuance of notes, act as banker to the %ov. money supply in the country it also has been allowed to carry out open market operations all the powers a were given to +he (eserve "ank of India, like any other central bank in the world to promote economic development.

SEBI (SECURITIES E&CHANGE BOARD OF INDIA)

+he 33I 3ontrols on Issue of 3apital by the companies have been substituted by the transparent and simplified by the securities & change "oard of India under the ,&"I $ct.:EE=. +he ever e panding investors population led to horde of malpractices on the part of companies, brokers, merchant bankers, investment consultants and various other agencies involved in new issues. +his led to an erosion of investorsG confidence and the stock e changes were helpless because the e isting legal framework was just not enough. (ealiFing this ,&"I was constituted by the government in $pril :E;; and given legal status in :EE= as a supervisor body to regulate and promote the securities market.

COMPANIES PROFILE
INTRODUCTION TO ANGEL BROKING LIMITED $ngel group is one of the highly reputed business groups in the field of stock broking. $ngel is among the first fiveCbroking company of India. +hey have two corporate memberships of the "ombay stock e change viF. angel broking limited and angel securities limited. $ngel is also having a national stock e change membership on the capital markets segment as well as the derivatives segment. (ecently angel has got license of commodity market . 3D,' license for Demat account $ngel group is one of the leading and professionally managed stick broking firms involved in quality services and research. $ngel group of companies comprises of corporate memberships on the "ombay stock e change and the national stock e change under both the cash and derivatives segment !clearing and trading members#. $ngel has :E branches spread all over the country and around :@@@@ investors. $ngel has B?@ ")'+ and N&$+ terminals spread all over the country. Moreover the company has :@@@ business associates spread all over the country. MANAGEMENT -rofessional and highly e perienced people headed by Mr Dinesh +hakkar manage the group. /e has :? years e perience in the field of stock broking. /e is well supported by Mr.Mukesh.(.%andhi, a :D years veteran in stock markets . Mr. 'alit.+hakkar with ; years e perience in the field of equities research. M(.1IN$5 $%($7$' at the post of 1ise -rasident. +he directors are well supported by a professional research team and dependable operations team. GROUP ACTIVITIES $ngel group has very well set research division managed by strong professional team. +hey provide fundamental as well as technical analysis to their clients. +hey have subscribed to various software packages including 3line =@@@, 3apita 3lips, +rends, D$(+, 1I+$', IN6$3 reports, 3MI& reports fundamental package form internet securities etc. angel group has :A? ")'+ terminals spread all over the country amongst its branches. +hey have branch offices at 6ort, 1ile -arle, Malad, "orivali, Mulund, +hane, ,antacruF , Dombivali, %oregaon, $ndheri, *albadevi, 3hembur and ,urut

!%ujarat# /yderabad , Indore. $ngel has e panded their might in to institutional broking segment also to provide the highest level of services to Indian financial institutions, banks, mutual funds and foreign institutional investors. TRADING AND RESEARCH ON INTERNET +rade on line privacy of your office or home to keep up with the furious pace of growth that we have set for ourselves, we are launching the concept of )N 'IN& +($DIN% in India. 7e are the first to give the )DIN which is approved software by N,& . ",& we believe that all investors should have direct access. +he software system allows investors to view prove quotes and other market related data and allows them to enter the trades and receive confirmations I)N'IN&G and access software is provide free of cost to our esteemed clients. &lse it is costing (s.:?@@ to company which company share with its client ?@ H?@ percentages. BROKERAGE Now broking house or broker is giving such a =3+45-3+ -).>+)(9+ 7,)2/,2)+. Its charges are 6+)1 0.*50(3 which 7,(),7 *(45*2* for retail client which are !.!%E .0 ,8+ -.,8 75:+ =.) ,8+ 7<2()+ .== ;853+ !.%E =.) :+356+)1 -(7+ +6+0 =.) :+)56(,56+ ,8+1 /8()9+ !.!%E .+his is the core strength company donGt charge any charges for the )+7+()/8 *(,+)5(3 and '.),=.35. (:657+ ,. ,8+5) /35+0,7. C.*'(01 956+7 +4'.72)+ B ,. 1! ,5*+7 .0 ,8+ =20:7 /35+0, 8(7 :+'.75,+:.

COMPETITORS PROFILE MOTILAL OS#AL SECURITIES LTD. Motilal )swal ,ecurities 'td !M),t# is one of the leading equity research and broking houses of India. It is known for its strong belief in 1alueCInvesting ideas, which forms the core of its investment philosophy. M),t provides endC toCend equity solutions to institutional and individual investors. M),t has a =@Cmember research team, which is engaged round the clock in analyFing the Indian economy and corporate sectors to identify equity investment ideas. More popularly known by its acronym JInquireJ, the research team staunchly practices valueCinvesting philosophy and advises investors to take a mature and longCterm view of equity investments. 3onsistent delivery of high quality advice on individual stocks, sector trends and investment strategy has established Inquire as a competent and reliable research unit amongst leading Indian as well as International investors. $sia Money "rokerKs -oll =@@= has rated M),t as one of the best Indian broking house, for research, for the second time since =@@@. +he M),t sales team, comprising top equity professionals, translates the research findings into actionable advise for you, based on your specific needs. ,ophisticated computeriFed tools are used to understand your investment profile and objectives, which ensures proactive and timely service. M),t has distinguished itself by its close relationship with some of the leading 6oreign and Domestic Institutional Investors like Morgan ,tanley, "attery March, &MI3, 2+I, 'I3, $lliance, I3I3I -rudential, /D63 M6, /,"3 M6, "irla M6 etc. I,7 *.)+ 50 ,. '.),=.35. *(0(9+*+0, (0: 5, 8(7 /35+0, ;85/8 ()+ *.)+ ,8+0 R7. %! 3(/>7 .= '.),=.35. ,8+1 /8()9+ "E .0 '.),=.35. *(0(9+*+0, (0: %E =.) FII.

KOTAK SECURITIES *otakstreet.com is the internet share trading arm of kotak securities ltd. It offers different and wide range of investments S8()+7 D+)56(,56+7 IPO M2,2(3 =20:7 ADDED ADVANTAGES T8+ "50 1 (//.20, Integrate your banking, broking and demate accounts with the Bin: account and trade in shares without the bother of tracking settlement cycles K.E.A.T *otakstreet eCtrading access terminal is an online trading system that allows you to view thick by tick live rates of your watch list of shares with *.&.$.+. you can view intra day and historical charts for a share set price alerts and derivative chains and many mare features. BNSTFG "uy now sell tomorrow with a guarantee lets you sell D?< of the specified shares you have purchased before you get delivery of them from the e change. 5ou neednGt worry about short allotment "N,+C% is available at no additions charge. C(33 (0: T)(:+ +here is facility of call to tall free number and trade offline A=,+) *()>+, .):+)7 -lace your orders with us after market hours these orders will get placed in the market on the ne t trading day.

B).>+)(9+ D .,8+) /8()9+7

C(78 *()>+, G7<2()509 2' 1olume per months "rokerage on both (s. side L ? crores @.@>< = crores C ? crores @.@?< =? lakhs C= crores @.@A< :@ lakhs C =? lakhs @.@;< 9:@ lakhs @.:@<

C(78 *()>+, G:+356+)1 -(7+ 1olume per months "rokerage on both (s. side L=corores @.=@< A@ lakhs C = crores @.=?< =@ lakhs CA@ lakhs @.B@< :@ lakhs C =@ lakhs @.>@< ? lakhs C :@ lakhs @.?@< : lakhs C ? lakhs @.A@< 9 : lakhs @.A?< D.- charges e tra Derivatives market 1olume per months "rokerage on both side "rokerage on both side (s. !settlement# !square up# L:@corores @.@?< @.@B< ?.? crores C :@ crores @.@?< @.@>< = crores C ?.? crores @.@;< @.@?< 9 = crores @.:@< @.@D<

THE ICICIDIRECT $ 2nique BCinC: account that gives youM C.06+05+0/+: +he BCinC: account integrates your banking, broking and demat accounts. +his enables you to trade in shares without going through the hassles of tracking settlement cycles, writing cheques and +ransfer Instructions, chasing your broker for cheques or +ransfer Instructions etc. S'++:: 5ou can now get the latest quotes of scripts on I3I3Idirect.com and place an order almost instantly. C.0,).3: 5ou can be assured that you have in fact placed an order at the price you always wanted to, but may not have been able to do so till now. +hereby giving you control over your own trades. I0:+'+0:+0/+: Instead of transferring monies to a brokerKs pool or towards deposits, you can manage your own demat and bank accounts when you trade through I3I3Idirect.com. T)27,: I3I3Idirect.com comes to you from I3I3I, the organiFation trusted by millions of Indians

P).:2/,7 (0: S+)65/+7 $ product for every needM I3I3Idirect.com is the most comprehensive website, which allows you to invest in S8()+7, M2,2(3 =20:7, D+)56(,56+7 (F2,2)+7 (0: O',5.07) (0: .,8+) =50(0/5(3 ').:2/,7. ,imply put we offer you a product for every investment need of yours. 1. T)(:509 50 78()+7: I3I3Idirect.com offers you various options while trading in shares. : +his is a delivery based trading system, which is generally done with the intention of taking delivery of shares or monies.
C(78 T)(:509

: 5ou can also do an intraCsettlement trading 2' ,. " ,. $ ,5*+7 your available funds, wherein you take long buyN short sell positions in stocks with the intention of squaring off the position within the same day settlement cycle.
M()950 T)(:509

: +hrough Margin-'2, you can do an intraCsettlement trading 2' ,. % ,5*+7 your available funds, wherein you take long buyN short sell positions in stocks with the intention of squaring off the position within the same day settlement cycle. Margin-'2, will give a much higher leverage in your account against your limits.
M()950PLUS T)(:509

: +his facility can be used only for selling your demat stocks which are already e isting in your demat account. 7hen you are looking at an immediate liquidity option, K3ash on ,potK may work the best for you, )n selling shares through Jcash on spotJ, money is credited to your bank aNc the same evening . not on the e change payout date. +his money can then be withdrawn from any of the I3I3I"ank $+Ms.
S'., T)(:509 BTST :

"uy +oday ,ell +omorrow !"+,+# is a facility that allows you to sell shares even on :st and =nd day after the buy order date, without you having to wait for the receipt of shares into your demat account. C(33NT)(:+H : 3allN+radeO allows you to call on a local number in your city . trade on the telephone through our 3ustomer ,ervice & ecutives. +his facility is currently available in over 11 *(?.) 7,(,+7 (/).77 I0:5(. T)(:509 .0 NSEIBSE : +hrough I3I3Idirect.com, you can trade on NSE as well as BSE. M()>+, O):+): 5ou could trade by placing market orders during market hours that allows you to trade at the best obtainable price in the market at the time of e ecution of the order. L5*5, O):+): $llows you to place a buyNsell order at a price defined by you. +he e ecution can happen at a price more favorable than the price, which is defined by you, limit orders can be placed by you during holidays . nonC market hours too. O,8+) (:6(0,(9+7 +rade in Derivatives Investing in Mutual fundsM I-)s and "onds )nlineM 3ontent 6eatures -ersonal 6inance

BROKERAGE O0 D+)56(,56+7 S+9*+0, B).>+)(9+ .0 ,)(:+7 :.0+ 50 S'., S+9*+0,: +ime for -ayCout : to D days ; to :> days :? H:; days :E days and more "rokerage :.=?< :.D?< =.@@< =.=?<

F2,2)+7 D O',5.07 S+9*+0, D M()950 S+9*+0,: +otal &ligible +urnover !1olume of +ransaction# per month L (s. >.@ crore L :.? crore and upto (s. >.@ crore L @.? crore and upto (s. :.? crore 2p to (s. @.? crore "rokerage

@.@?@< @.@D?< @.:@@< @.:?@<

ICICID5)+/,./.* A//.20, O'+0509 F++ : R7. B%!

DIFFERENT DEPARTMENT OF STOCK BROKING HOUSE

HRD (HUMAN RESOURCES DEPARTMENT) $s such company does not have any specific /( department, which closely take care about it, but all the topClevel management is looking after it. (ecently company has we have employed Mr. (ajiv -hadke as out hr consultantC whose basic function is to develop a performance appraisal system and to take care of training needs ot diff dept heads and senior people to start with. (ecently $ngel is in to 829+ +4'(075.0 process as they are in the process of forming of R+95.0(3 .==5/+ at the $hmedabad center for the %ujarat region. H2*(0 )+/.2)7+ '3(00509 is done as the company has done the J.A0(31757 the need of the employees they need for the )+95.0(3 .==5/+ in ')5+) J*.0,8 and they have given the advertisement in the allCleading newspaper of %ujarat. 3ompany has received more than ?@@ application through different ways like Internet, currier, physical etc. the /2, .== criteria was 7,)5/,31 -++0 =.33.;+:. )n which basses the candidates were been called for the =5)7, ).20: .= 50,+)65+;. +he 78.),F357,+: candidates where been called for =50(3 50,+)65+; which where been taken by the ,.'F3+6+3 *(0(9+*+0, D ,8+ +4'+), .= ,8+ /.0/+)0+: =5+3:. 6inally they where )+/)25,+: and 7+3+/,+: for the appropriate job and where been '3(/+: T)(50509 is been provide at $hmedabad branch it self but if requirement is there for +4,)( ,)(50509 then company send them to "ombay head office also. 3ompany is giving *.,56(,5.0 in all the terms as the employee wants may be in '.75,5.0 =.)* .) 50 *.05,.)1 ;(1.

+here is 0. 7,)2/,2)+: ;(1 .= /.**205/(,5.0 it is 6+)1 =3+45-3+ and for every decision '(),5/5'(,5.0 *(0(9+*+0, is used. +here is ,;.F;(1 /.**205/(,5.0 /8(00+3 in the organiFation with an .'+0 :..) 7,)(,+91. 3ompany is providing ').65:+0, =20: =(/535,1 to its every employee. $ll the employees are been taken on $ngelGs '(1).33 717,+* none of them are hired.

R+/.**+0:(,5.0 A7 /.*'(01 57 50 ,. 829+ +4'(075.0 ')./+77 (0: ,8+1 8(6+ )+/)25,+: *(01 0+; +*'3.1++ (, )+95.0(3 .==5/+ .= A8*+:(-(: 50 0+() =2,2)+ ,8+)+ ()+ /8(0/+7 ,. 50,+)0(3 :57'2,+ (7 *(01 .= ,8+* ()+ :5)+/,31 '.7,+: (, 7+05.) 3+6+3 7. ,8+)+ *(1 -+ '.775-535,1 .= +9. /3(78 (0: *(01 .,8+) ').-3+*7 7. +6+)1 ,5*+ ,. 9+, 5, 7.36+: -1 ,8+ ,.' 3+6+3 *(0(9+) ,8+1 /(0 )+/)25, ( HR '+)7.0 (, )+95.0(3 3+6+3 (37. 7. ,8(, ,.' 3+6+3 *(0(9+*+0, ,5*+ ;533 -+ 2,535K+: 50 *.)+ .0 (:*5057,)(,.) ,8+0 ,857 >50: ,. :57'2,+ 7.36509.

FINANCE DEPARTMENT $s company has ,5+ 2' with big banks like /D63 bank, who provide them facility like O.D., 7(*+ :(1 /3+()(0/+ =(/535,1 etc. recently according to ,&"IGs rule company has done ,5+ 2' =.) *()950 =20:509 also which will be starting in very short time span +here are two employees in finance department in this branch and they are responsibility is as under. o Maintaining records o Maintaining ledger of clients o 3ollection of bill o 3ollection of payment o -ending bill o ,alaries, currier electricity bills telephone bills, etc o (eminding clients for the payment. o -ayment to clients as and according to terms and conditions $s companyGs ')./+:2)+ is that all the payments are made by /8+<2+7 and they are issued and authoriFed by the M(0(9+*+0, (, ,8+ M2*-(5 8+(: .==5/+. ,o according this branch has to convey the details of cheques required to /.). which send the cheques by currier, which reaches at all branches before the ne t day noon and the cheque received will be entered in the /D63 bank at each branch which :+,(53 +0,)1 are been made in the online -(/> .==5/+ 3ompaniesG ;.)>509 /('5,(3 is coming from the -).>+)(9+ that they /8()9+ to their /35+0,7. +he brokerage they charge varies from customer to customer the ma imum brokerage they charge to their )+,(53 /27,.*+) .0 ,)(:509 57 !.!% E .0 .0+ 75:+ (0: !.%E .0 :+356+)1

+here is know =54+: 73(- 7,)2/,2)+ in the company ,8+ -)(0/8 *(0(9+) is the final authority for brokerage decision

CASH IN FLO#
"rokerage Margin collection -ay out from N,&, ",& -ay in from customer

OUTFLO#
"rokerage paid to N,&, ",& Margin paid to N,&, ",& -ay out customer -ay in to N,&, ",& ,alary &lectricity 3urrier & pansion +elephone ,eminaries, other stationary materials

MARKETING DEPARTMENT 3urrently branch has two sales officer, four dealers and one assistant manager Marketing department but they have employed one marketing manager, ten new sales officers and one relational manager for high net worth clients. Marketing department is divided in to parts like +raders (etailers ,ub brokers 6ranchisee 6or each and every department they are having 7'+/5(3 '+)7.0 +*'3.1+: 7ho takes care =).* *(>509 /35+0,7 =.) /.*'(01 ,. 7(,57=1 ,8+ /35+0, -1 7+)65/+. D5==+)+0, M()>+,509 S,)(,+95+7 L.; /.7, .= ,)(:+ Due to +/.0.*5+7 .= 7/(3+ $ngel "roking 3ompany offer o 3ompetitive brokerage rates o 6le ible deposit structures o $ttractive revenue sharing models F50(0/5(3 7,(-535,1 o o o ,ound track record since inception -rompt pay out of fundsNsecurities ,trong financial products like Margin +rading, ,pot 6acilities, etc.

 o o

T+/80.3.91 E:9+ ",& and N,& !cash and 6.)# through a single terminal )nline tick by tick charts, news flashed on the same terminal o +eam of well qualified engineers for technical support o ,tate of the art backup and disaster recovery system o Instant access for trading in remote areas through $ngels private 1C,$+ network @2(35,1 R+7+()/8 A/,565,5+7 o o o 6undamental research +echnical research Derivatives strategies R+7+()/8 T+(* Dedicated fundamental research team conducting trough analysis and study of a variety of factorsNfacts and latest developments in the industry NsectorNscrip o Involved in technical analysis since many years resulting in effective analysis and sound recommendations o 3lients can directly contact research team member and ask for the ne t move in terms of any confusions. o M()>+, .2,3..> (, C."! (* $ crisp preCmarket report that arms the clients with sensitive information before the opening bell key corporate developments, announcements geoCpolitical situations and strategic recommendations are encapsulated in the report.

 o o

T+/805/(3 R+'.),7 7eekly, daily, intra day calls -ost market review

$ngel provides the entry target, e it target and stop loss levels. $ngel distribute the calls trough flashes on terminals or its is on its website o o o o o o o P.7, *()>+, )+65+; -repared after the market close Describes the whole day activity )ur analysis on the same )ur e patiation about the ne t trading day D+)56(,56+ )+7+()/8 6or day traders and short tem tradeC intraday calls short term trading recommendations 6or portfolio holdersChedging and risk containment strategies 6or arbitrageurs and jobbersC advanced strategies based on changing market conditions purely for arbitrageurs and jobbers.

V(32+ (::+: 7+)65/+7 o o o o o -ortfolio guidance Marketing and promotional activities +raining and education )nline char facility with our research analysts Depository participant !D.-.# account of 3D,' is been provided.

$ngel continuously holds 7+*50()7, +:2/(,5.0(3 *++,5097 to keep the (77./5(,+7 (-)+(7, with the 3(,+7, :+6+3.'*+0, 50 ,8+ =5+3:7. $ngel imparts ,)(50509 .0 ,+/805/(3 (0(31757 (0: :+)56(,56+7 7,)(,+95+7. $ngel publishes ').*.,5.0(3 -)./82)+7I*()>+,509 *(,+)5(3 that +072)+7 8598+) 6.32*+7 =.) A09+3 (77./5(,+7.

SPECIAL ASSIGNMENT A7 /2))+0,31 A09+3 8(7 8.3:7 S+*50() =.) ,8+ /35+0,7 .0 ,8+ B2:9+, (0: 5,7 5*'(/, .0 ,8+ 1$ .= J231 *.)+ ,8+0 J!! 5065,+7 ()+ -++0 +4'+/,+: ,. (,,+0: ,857 7+*50(), ;85/8 ;533 -+ ;5,8 :500+) (77./5(,+: ;5,8 5,. D5==+)+0, *+:5( 35>+ T.V. /8(00+37, N+;7'('+)7 ;533 -+ /.6+)509 ,857 +6+0,.

T. ,()9+, :5==+)+0, 7+9*+0, .= /35+0,7 (09+3 8(7 ,(>+0 72//+77=23 '(), 50 ,8+ 11:(17 +6+0, L6(/(,5.0 !!$ L(, A8*+:(-(: ;85/8 ;(7 -++0 6575,+: -1 *.)+ ,8(0 J,%!,!!! 6575,.)7 =).* ;85/8 (09+3 8(7 9., 6+)1 9..: :(,( -(7+ =.) )+,(53 /35+0, (7 ;+33 (7 8598 6(32+: /35+0,7.

RECOMMANDATION A7 /.*'(01 /(0 ;5:+31 7')+(: 50 5,7 0+,;.)> .,8+) ,8+0 A8*+:(-(: /5,1 35>+ S8(2)(7,)( )+95.0. 0.),8 G2?()(, )+95.0, +(7,+)0 '(), .= G2?)(,, (7 ,8+)+ 57 6+)1 829+ '.,+0,5(3 .= +4'(075.0 50 ,857 )+95.0 ;85/8 ()+ 7,533 20,.2/8+: -1 ,8+ /.*'(01. C.*'(01 /(0 .'+0 5,7 .;0 -)(0/8 -2, ,8+ -+7, ;(1 .2, 57 ,. 956+ =)(0/857++ .= A09+3, ;85/8 ;533 7(6+ 3., .= +4'(07+ .= ,8+ /.*'(01. F.) ,()9+,509 HNI C.*'(01 /(0 9+, (//+77 ,. ,8+ :(,(-(7+ .= -59 /32- .) +6+0 /(0 *()>+, 5, ').:2/, (, ,857 '3(/+. E6+0 829+ :(,(-(7+ .= ,)(6+3 (9+0/1 .= ,8+ /35+0, ;8. 8(7 -++0 ,. =.)+590 ,)5', )+923() 6575,.) .= -59 8.,+37 /(0 -+ 27+.

RISK MANAGEMENT BY A BROKING HOUSE CLIENT SIDE (isk management ;.)> 7,(),7 as and when 727'+/, -+/.*+7 /35+0, of the company. $s company earn from the -).>+)(9+ so company has made *(0:(,.)1 to take :+'.75, from the clients on its basses company 956+ +4'.72)+ to trade in 3ash and 6.). +o keep company )57> =)++ /.*'(01 /.20, 8(5) /ut and give the +4'.72)+ Deposit 3ash !cheque# & posure P D to :@ times approved securities on A@< D to :@ times

3ompany always take care that they receive the slip of demated stock which are sold .It should be received late by 3(,+ -1 ,8+ 0+4, :(1 so that to save the stock to 9+, (2/,5.0 as there is term of + Q = !trading day Qtwo days#. 7here broker has to give all the sold stocks to the e changes it was sold. ,ame way company should receive the cheque!company deals trough cheque only# on the very ne t day so that they can pay that to e changes here also there is tearm of + Q= . here company can have problem as cheque of other banks may take ? to A days to clear then company cannot pay the amount on the ne t day to the e change. 3ompany has found the solution by having ,5+ 2' ;5,8 ,8+ HDFC -(0>, ;85/8 956+7 ,8+* /)+:5, .0 ,8+ 7(*+ :(1. $nd of ,8+ /8+<2+ -.20/+ -(/> -(0> :+-5, ,8(, *2/8 (*.20, =).* ,8+ (//.20, of the company. 3ompany )+7,)5/,7 (33 ,)(07(/,5.0 of the client who has 5,7 3+:9+) (//.20, :+-5,.

E&CHANGE SIDE $s e changes just 782, :.;0 ,8+ ,+)*50(3 .= ,8+ -).>+) (7 5,7 35*5, /).77 ,8+ +4'.72)+ 956+0 -1 ,8+ +4/8(09+7 so company has to be very care full regarding this as and when they feel that 35*5, 0++:+: ,. +4,+0: 5, 50/)+(7+ 5,7 :+'.75, 50 +4/8(09+ (0: 9+, *.)+ +4'.72)+ .0 5,. ,857 57 *(01 ,5*+ :.0+ :2)509 *()>+, 8.2)7. & change :.0M, ,)+(, 50,+)0+, -(7+: (0: ,)(:+)7 ,+)*50(3 :5==+)+0,31 so company have to be 6+)1 /()+=2331 sets the limit at different level different limits are been always set and it could be changed by only admins. /ierarchy is followed in this way
& change level admin at /.). Internet admin +erminal adimin at /.).

3lients

3lients

+erminal admin at branches

+erminal admin at branches

DealersG terminals

,ubbrokers terminals

DealersG terminals

,ubbrokers terminals

BACK OFFICE DEPARTMENT +here are two main process in back office '(150 (0: '(1.2, which is done in the company online through its own back office software. P(150 :the client delivery of shares to broker and same way broker delivery of share to e changes is known as payin. P(1.2,: is the e changes delivery of shares or cheque to broker and broker delivery of share or cheque to clients is known as payout T8+ ,+)*7 .= '(150 (0: '(1.2, 57 TN $ll kind of -533509 =.) /35+0,7 .) +6+0 =.) 72--).>+)s are done ,8).298 -(/>.==5/+. 7hich is /+0,)(331 *(0(9+: (0: A:*5057,)(,+: =).* 8+(: .==5/+. 3ompany has kept (33 ')+65.27 :(,( .0350+ so whenever needed or in ,5*+7 .= /.0=35/, it could be very +(7531 )+/.6+)+:. 3ompany provided this facility to its client to /8+/> ,8+5) /2))+0, 7,(,27 .0350+. $IB ( ;++>. +his software gives complete details clients vise that who have :+-5, ,8(, (37. 8.; *2/8 (0: ;85/8 /35+0, 8(6+ /)+:5, (0: 8.; *2/8 ;5,8 compared to its ,)(:+ 50 :5==+)+0, +4/8(09+ and client which 3(:9+) /)+:5, D:+-5, ()+ -++0 :5==+)+0,5(,+: It also give detail of whose '(1 50 (0: '(1 .2, 57 3+=, (0: ;8+0 ,. )+/.6+) (0: ;8+0 ,. :+356+). NO T85): '(),1 ,)(07(/,5.0 57 (33.;+: (//.):509 ,. SEBIMS 925:+350+7.

RECOMMENDATION A7 ,8+)+ 78.23: -+ 5**+:5(,+31 /8(09+7 *(:+ 50 ,8+ 7/)5', 0(*+ (7 0(*+ /8(09+7 50 :5==+)+0, +4/8(09+7.

DEPOSITORY PARTICIPANT D DEMAT (D.P.) D+'.75,.)1 '(),5/5'(0, $ Depository facilitates holding of securities in the electronic form and enables securities transactions to be processed by book entry by a Depository -articipant !D-#, who as an agent of the depository, offers depository services to investors. $ccording to ,&"I guidelines, financial institutions, banks, custodians, stockbrokers, etc. are eligible to act as D-s. +he investor who is known as beneficial owner !")# has to open a demat account through any Dfor dematerialisation of his holdings and transferring securities. +he balances in the investors account recorded and maintained can be obtained through the D-. +he D- is required to provide the investor, at regular intervals, a statement of account, which gives the details of the securities holdings and transactions. +he depository system has effectively eliminated paperCbased certificates, which were prone to be fake, forged, counterfeit resulting in bad deliveries. D.-. offers an efficient and instantaneous transfer of securities. +here are two different kind share depository. NSDL National Securities Depository Limited CDSL Central Depository Securities Limited $ngel has got the license of 3D,'. 3D,' was set up with the objective of providing convenient, dependable and secure depository services at affordable cost to all market participants.

INFORMATION TECHNOLOGY DEPARTMENT

CONNECTIVITY LAYOUT FOR ANGEL BROKING LTD., AHMEDABAD BRANCH S+)6+) C.00+/,5.0 ;5,8 +4/8(09+: 1,$+M 3onnecting to N,& and ",& with 1,$+ through &I3)N server, which works as protocol convertor that gives A> kbps connectivity. L+(7+ 350+M +hrough direct 'ease line to N,& office in $hmedabad and then onwards, fiber optic connectivity to N,&, 'ease line gives A> kbps connectivity with high speed modem at both ends. S+)6+) C.00+/,5.0 ;5,8 /35+0, T+)*50(37 (0: (:*50 ,+)*50(3: '$N connectivityM specially for the clients in the premises and the admins terminal, '$N connectivity with :@N:@@ M"-, speed gives highest speed performance to client terminals but within the same premises. 7$N connectivity o +elephone lineM 7ith (($, !(outing and (emote $cces ,erver# a client terminal can connect to the server with a simple telephone line and a modem with ?Akbps !ideally# connectivity. o I,DN lineM $s digital line the transfer of data is more secure and reliable in I,DN !Integrated service Digital Network# line than telephone line with one channel of :=; *"-, can accept =RA> kbps data. o 1-N !1irtual -rivate Network# 3onnectionM $ 1irtual -rivate Network provided by I8$($ broadband, each 1-N connection is provided with A> kbps bandwidth. o Internet connectivity !for )DIN DI&+ software only#M $ specially designed )DIN DI&+ 3lient that directly log on to server through any Internet connectivity.

+o facilitate client with more database, analysis software named FALCON" is also provided to the corporate clients that gives 9)('85/(3 (0(31757 of the rates.

$ddition to above server connectivity, the N,& and ",& e change provided software that connects to the e change directly without any converter software or hardware.

CONCLUSION
$s and according to IndianGs mentality they believe that stock market is the one of the most comple financial market to invest where there is very high change of loosing money. "ut in reality its not such as if one do a bit study of stock market and invest wisely then this is the market, which gives the best returns. ,econdly person should invest on the base of the fundamentals and technical analysis not by the advice or the humor in the market. $nd investor should love his stock but should not marry it. Means he should not be greedy or else he will loose every thing. +rader should not trade *.)+ ,8+0 857 /('(/5,1,. -()+ 3.77 .he should not trade without keeping 7,.'3.77.

COMPLIENCES $pplicants recommended for admission will be required to pay the following fee and deposits
!$ll figures in (s.lakhs#

,r. No.

-articulars

$dditional +otal for 3M and 3M and requirements for +rading . +rading 3learing 3learing Membership of Membership of Membership of 6.) ,egment N,33' !6.) 6.) ,egment ,egment# ::@ ::@

B >

Interest 6ree 3ash ,ecurity Deposit with N,&I' Interest 6ree 3ash ,ecurity Deposit with N,33' +otal Interest 6ree 3ash ,ecurity Deposit !:Q=# 3ollateral ,ecurity

:?

=?

>@

:=? =?

=? =?

:?@ ?@

Deposit with N,33' $nnual ? ,ubscription 3harges $dvance Minimum +ransaction A 3harges for 6utures . )ptions ,egment D Networth (equirement

B@@ B@@ !:@@ for selfC !:@@ for selfC :@@ clearing members clearing members in 6.)# in 6.)#

Deposit for setting up 1,$+ terminals and operating cost for the 1,$+ network will be levied separately as per the policy prevailing from time to time. It is pertinent to note that for the 6utures . )ptions ,egment, though the clearing members will not be required to bring in any additional interestCfree cash deposit or maintain collateral security with N,33' for clearing and settling their trades in the segmentS they are required to bring in additional security as specified below only in respect of other trading members whose trades they undertake to settle in the 6utures . )ptions ,egment. T Interest 6ree ,ecurity Deposit with N,33' !3ash#M (s.= lakhs per trading member. T 3ollateral ,ecurity Deposit with N,33' !"y way of cash or bank guarantees or fi ed deposits or select demat securities with appropriate hair cuts#M (s.; lakhs per trading member. $n applicant must be in a position to pay the membership and other fees, deposits etc, as applicable at the time of admission within three months of intimation to him of admission as a +rading Member or as per the time schedule specified by the & change. +he security deposit will be included in

determining the net worth of the +rading Member, however, the annual subscription fee N other periodical charges would be e cluded for this purpose.

COMPUTATION OF NET#ORTH OF TRADING MEMBERS $ll trading members of the & change are required to submit their networth statements on a half yearly basis as on B:st March and B@th ,eptember every year. +rading members have the fle ibility of calculating their networth as per any of the methods given belowM )nce a trading member chooses one of the below given methods, he will have to continue to compute his networth using the same method unless a change of method is specifically approved by the & change.

M+,8.: 1: $s per circular No. >> dated 4anuary ==, :EED, which prescribes the treatment of each and every component of the balance sheet as per the book value or the books of accounts of the trading member.

A00+42)+ I,+*7 F54+: A77+,7 : %oodwill Intangible assets 'and T)+(,*+0, =.) N+, #.),8 /.*'2,(,5.0

"uildings

'easehold

-lant and Machinery

6urniture and 6ittings

Development of -roperty

-atents, designs 1ehicles

+rademarks

and

3omputers etc.! /ardware and ,oftware # 1alue of other stock e change card I06+7,*+0,7 : Deposit with other stock exchange 1alue of other stock e change card %ovt. N +rust ,ecurities

Not to be considered for Net 7orth computation. Not to be considered for Net 7orth computation +o be considered at book value per statement of $ssets . 'iabilities N "alance ,heet +o be considered at book value per statement of $ssets . 'iabilities N "alance ,heet +o be considered at book value per statement of $ssets . 'iabilities N "alance ,heet +o be considered at book value per statement of $ssets . 'iabilities N "alance ,heet +o be considered at book value per statement of $ssets . 'iabilities N "alance ,heet +o be considered at book value per statement of $ssets . 'iabilities N "alance ,heet Not to be considered for Net 7orth computation +o be considered at book value per statement of $ssets . 'iabilities N "alance ,heet +o be considered at book value per statement of $ssets . 'iabilities N "alance ,heet Not to be considered for Net 7orth computation. V(32(,5.0 (7 '+) AS 1". Not to be considered for Net 7orth computation. Not to be considered for Net 7orth computation. +o be considered at book value per statement of $ssets . 'iabilities N "alance ,heet

Debentures or "onds

+o be considered at book value per statement of $ssets . 'iabilities N "alance ,heet ,hares !6ully paidCup and partly +o be considered at book value per paidCup# statement of $ssets . 'iabilities N "alance ,heet ,haresNDebentures and "onds +o be considered at book value per of ,ubsidiary companies statement of $ssets . 'iabilities N "alance ,heet Immovable properties +o be considered at book value per statement of $ssets . 'iabilities N "alance ,heet Investments in capital of +o be considered at book value per partnership firms statement of $ssets . 'iabilities N "alance ,heet Debit "alance in -.' $Nc Not to be considered for Net 7orth computation. C2))+0, A77+,7: N,& ,ecurity Deposit +o be considered at book value per statement of $ssets . 'iabilities N "alance ,heet N,& 1,$+ . 2-, Deposit +o be considered at book value per statement of $ssets . 'iabilities N "alance ,heet ,tock C in C trade +o be considered at book value per statement of $ssets . 'iabilities N "alance ,heet ,undry Debtors +o be considered at book value per Cmore than si months statement of $ssets . 'iabilities N "alance Cothers ,heet 'essM -rovision for bad debts +o be considered at book value per statement of $ssets . 'iabilities N "alance ,heet 3ash on hand +o be considered at book value per statement of $ssets . 'iabilities N "alance ,heet 6i ed deposit with bank +o be considered at book value per statement of $ssets . 'iabilities N "alance ,heet "ank balances +o be considered at book value per statement of $ssets . 'iabilities N "alance ,heet Deposit with M+N' +o be considered at book value per statement of $ssets . 'iabilities N "alance ,heet

O) M+,8.: : "y valuation of their assets on the following basisM $. 'isted !8uoted# investments in the name of the applicant !at market value# !Detailed list to be enclosed# ". Margin of B@< on market value of listed !quoted# Investments 3. Net value of listed Investments !$# H !"# D. Investments in unlisted !unquoted# companies !as per Note No. B# &. Margin of ?@< on !D# 6. Net value of unlisted Investments !D# H !&# %. )ther Investments !at cost# like --6, N,3 at current value, ,tatutory deposits with the & change, Deposits with registered N"63s, "ank 6Ds /. +otal Net Investments !3# Q !6# Q !%# I. Market 1alue of 'and . "uilding component of the 6i ed $ssets !6ull details of such assets like survey number, location, address, e tent of land . building to be furnished# 4. Margin on I at ?@< *. Net value of such fi ed assets !I H 4#. '. Debtors not e ceeding B months Q 3ash . "ank balance M. 3urrent 'iabilities N. 'ong term liabilities ). Networth !/ Q * Q '# H !M Q N# NotesM C :. 6or computation of loans and advances as a component of current assets, all advances N loans other than those arising out of securities dealing have to be e cluded. )nly such loans and advances arising due to the securities dealings are to be included as current assets for the purpose of networth computation. 1aluation of fi ed assets for the consideration of networth would have to be certified by government approved valuers and the value would hold good for B years unless a fresh valuation is submitted. )nly those items of land . building that are in the name of the trading member as well as in the possession of the trading member shall be included under the head !I# C 'and . "uilding component of the 6i ed $ssets. +hose properties that are leased out by the trading member or taken on lease shall not be included for computation of networth. 6i ed $ssets other than 'and .

=.

"uilding shall not be included for the purpose of computation of networth. B. 1aluation of unlisted investments would be at Ufair valueV of the said investment, i.e. the average of the Uearning valueV and the Ubreak up valueV. 6or this purposeM C

a# +he Ubreak up valueV means the equity capital and reserves as reduced by intangible assets and revaluation reserves, divided by the number of equity shares of the investee company. b# +he Uearning valueV means the value of an equity share computed by taking the average of profits after ta as reduced by the preference dividend and adjusted for e traCordinary and nonCrecurring items, for the immediately preceding three years and further divided by the number of equity shares of the investee company and capitalised at the following rateM C In case of predominantly manufacturing company, eight percentS In case of predominantly trading company, ten percentS and In case of any other company, including an N"63, twelve percentS If, an investee company is a loss making company, the earning value will be taken at Fero. !6or e.g. &1 for an N"63 with capitalisation rate of :=<, is earning per share multiplied by :@@N:=# Details of items comprising investments, current assets, current liabilities and long term liabilities should be given separately. 3urrent assets should e clude loans to related entities, bad and doubtful debts and debts outstanding for more than B months, advance against capital assets, pledged securities N assets, prepaid e penses, bad deliveries and also intangible assets. Debtors should be distinguished as debtors arising from securities operations and others. 1alue of membership card N Deposits with any other ,tock & change is to be e cluded for the purpose of computation of networth.

>. ?.

A. D.

;. $dvance N Investment with or debts due from persons notified under ,pecial 3ourt !+rial of )ffences (elating to +ransactions in securities# $ct, :EE= are to be e cluded for the purpose of computation of networth.

C.*'2,(,5.0 .= N+,;.),8 .= C3+()509 M+*-+)7 .= F2,2)+7 D O',5.07 S+9*+0, (7 '(), .= M+*-+)785' R+<25)+*+0,7 +he method of computation of Networth as prescribed by Dr. '.3. %upta 3ommittee on Derivatives for clearing members is as follows 3apital Q 6rees (eserves 'ess NonCallowable assets viF., !a# 6i ed $ssets !b# -ledged ,ecurities !c# MemberKs card !d# NonCallowable securities !unlisted securities#, !e# "ad deliveries !f# Doubtful Debts and $dvancesR !g# -repaid e penses, losses !h# Intangible $ssets !i# B@< of Marketable securities R& planationM Includes debtsNadvances overdue for more than three months or given