Introduction

Stock Market:

Stock market refers to a market where securities are traded after being initially
offered to the public in the primary market and/or listed on the Stock Exchange. Majority
of the trading is done in the secondary market. Secondary market comprises of equity
markets and the debt markets.

Role of Primary Market:

The primary market provides the channel for sale of new securities. Primary
market provides opportunity to issuers of securities; Government as well as corporates, to raise
resources to meet their requirements of investment and/or discharge some obligation. They may
issue the securities at face value, or at a discount/premium and these securities may take a variety
of forms such as equity, debt etc. They may issue the securities in domestic market and/or
international market.

Role of Secondary Market:

For the general investor, the secondary market provides an efficient platform for
trading of his securities. For the management of the company, Secondary equity markets serve as
a monitoring and control conduit—by facilitating value-enhancing control activities, enabling
implementation of incentive-based management contracts, and aggregating information (via
price discovery) that guides management decisions.

Comparison between Primary Market And Secondary Market:

In the primary market, securities are offered to public for subscription for the purpose
of raising capital or fund. Secondary market is an equity trading venue in which already
existing/pre-issued securities are traded among investors. Secondary market could be either
auction or dealer market. While stock exchange is the part of an auction market, Over-the-
Counter (OTC) is a part of the dealer market
STOCK EXCHANGE:

Role Of Stock Exchange In Buying And Selling Of Shares:

The stock exchanges in India, under the overall supervision of the regulatory authority,
the Securities and Exchange Board of India (SEBI), provide a trading platform, where buyers
and sellers can meet to transact in securities. The trading platform provided by NSE is an
electronic one and there is no need for buyers and sellers to meet at a physical location to trade.
They can trade through the computerized trading screens available with the NSE trading
members or the internet based trading facility provided by the trading members of NSE.

Demutualization Of Stock Exchanges:

Demutualization refers to the legal structure of an exchange whereby the ownership, the
management and the trading rights at the exchange are segregated from one another.

Difference between Demutualised Exchange And Mutual Exchange:

In a mutual exchange, the three functions of ownership, management and trading are
concentrated into a single Group. Here, the broker members of the exchange are both the owners
and the traders on the exchange and they further manage the exchange as well. This at times can
lead to conflicts of interest in decision making. A demutualised exchange, on the other hand, has
all these three functions clearly segregated, i.e. the ownership, management and trading are in
separate hands.

STOCK TRADING:

Screen Based Trading:

The trading on stock exchanges in India used to take place through open outcry without
use of information technology for immediate matching or recording of trades. This was time
consuming and inefficient. This imposed limits on trading volumes and efficiency. In order to
provide efficiency, liquidity and transparency, NSE introduced a nationwide, on-line, fully
automated screen based trading system (SBTS) where a member can punch into the computer the
quantities of a security and the price at which he would like to transact, and the transaction is
executed as soon as a matching sale or buy order from a counter party is found.

Neat:

NSE is the first exchange in the world to use satellite communication technology for
trading. Its trading system, called National Exchange for Automated Trading (NEAT), is a state
of-the-art client server based application. At the server end all trading information is stored in an
in memory database to achieve minimum response time and maximum system availability for
users. It has uptime record of 99.7%. For all trades entered into NEAT system, there is uniform
response time of less than one second.

Process To Place Orders With The Broker:

You may go to the broker’s office or place an order on the phone/internet or as defined in
the Model Agreement, which every client needs to enter into with his or her broker.

Process To An Investor Get Access To Internet Based Trading Facility:

There are many brokers of the NSE who provide internet based trading facility to their
clients. Internet based trading enables an investor to buy/sell securities through internet which
can be accessed from a computer at the investor’s residence or anywhere else where the client
can access the internet. Investors need to get in touch with an NSE broker providing this service
to avail of internet based trading facility.

Contract Note:

Contract Note is a confirmation of trades done on a particular day on behalf of the client
by a trading member. It imposes a legally enforceable relationship between the client and the
trading member with respect to purchase/sale and settlement of trades. It also helps to settle
disputes/claims between the investor and the trading member. It is a prerequisite for filing a
complaint or arbitration proceeding against the trading member in case of a dispute. A valid
contract note should be in the prescribed form, contain the details of trades, stamped with
requisite value and duly signed by the authorized signatory. Contract notes are kept in duplicate,
the trading member and the client should keep one copy each. After verifying the details
contained therein, the client keeps one copy and returns the second copy to the trading member
duly acknowledged by him.

Details Are Required To Be Mentioned On The Contract Note Issued By The Stock
Broker:

A broker has to issue a contract note to clients for all transactions in the form specified by
the stock exchange. The contract note inter-alia should have following:

1. Name, address and SEBI Registration number of the Member broker

2. Name of partner/proprietor/Authorised Signatory.
3. Dealing Office Address/Tel. No./Fax no., Code number of the member given by
the Exchange.
4. Contract number, date of issue of contract note, settlement number and time
period for settlement.
5. Constituent (Client) name/Code Number.
6. Order number and order time corresponding to the trades.
7. Trade number and Trade time.
8. Quantity and kind of Security bought/sold by the client
9. ß Brokerage and Purchase/Sale rate.
10. Service tax rates, Securities Transaction Tax and any other charges levied by the
broker.
11. Appropriate stamps have to be affixed on the contract note or it is mentioned that
the consolidated stamp duty is paid.
12. Signature of the Stock broker/Authorized Signatory.

Maximum Brokerage That A Broker Can Charge:

The maximum brokerage that can be charged by a broker from his clients as commission
cannot be more than 2.5% of the value mentioned in the respective purchase or sale note.
The Reasons For Trade On A Stock Exchange:

An investor does not get any protection if he trades outside a stock exchange. Trading at
the exchange offers investors the best prices prevailing at the time in the market, lack of any
counter-party risk which is assumed by the clearing corporation, access to investor grievance and
redressal mechanism of stock exchanges, protection upto a prescribed limit, from the Investor
Protection Fund etc.

Points To Be Kept In Mind Before Investing In Stock Market:

1. Ensure that the intermediary (broker/sub-broker) has a valid SEBI registration certificate.
2. Enter into an agreement with your broker/sub-broker setting out terms and conditions
clearly
3. Ensure that you give all your details in the ‘Know Your Client’ form
4. Ensure that you read carefully and understand the contents of the ‘Risk Disclosure
Document’ and then acknowledge it.
5. Insist on a contract note issued by your broker only, for trades done each day
6. Ensure that you receive the contract note from your broker within 24 hours of the
transaction.
7. Ensure that the contract note contains details such as the broker’s name, trade time and
number, transaction price, brokerage, service tax, securities transaction tax etc. and is
signed by the Authorised Signatory of the broke
8. To cross check genuineness of the transactions, log in to the NSE website
(www.nseindia.com) and go to the ‘trade verification’ facility extended by NSE. Issue
account payee cheques/demand drafts in the name of your broker only, as it appears on
the contract note/SEBI registration certificate of the broker.
9. While delivering shares to your broker to meet your obligations, ensure that the delivery
instructions are made only to the designated account of your broker only.
10. Insist on periodical statement of accounts of funds and securities from your broker. Cross
check and reconcile your accounts promptly and in case of any discrepancies bring it to
the attention of your broker immediately
11. Please ensure that you receive payments/deliveries from your broker, for the transactions
entered by you, within one working day of the payout date.
12. Ensure that you do not undertake deals on behalf of others or trade on your own name
and then issue cheques from a family members’/ friends’ bank accounts.
13. Similarly, the Demat delivery instruction slip should be from your own Demat account,
not from any other family members’/friends’ accounts.
14. Do not sign blank delivery instruction slip(s) while meeting security payin obligation.
15. No intermediary in the market can accept deposit assuring fixed returns. Hence do not
give your money as deposit against assurances of returns
16. ‘Portfolio Management Services’ could be offered only by intermediaries having specific
approval of SEBI for PMS. Hence, do not part your funds to unauthorized persons for
Portfolio Management
17. Delivery Instruction Slip is a very valuable document. Do not leave signed blank delivery
instruction slip with anyone. While meeting pay in obligation make sure that correct ID
of authorised intermediary is filled in the Delivery Instruction Form
18. Be cautious while taking funding form authorised intermediaries as these transactions are
not covered under Settlement Guarantee mechanisms of the exchange
19. Insist on execution of all orders under unique client code allotted to you. Do not accept
trades executed under some other client code to your account.
20. In the event of any discrepancies/disputes, please bring them to the notice of the broker
immediately in writing (acknowledged by the broker) and ensure their prompt
rectification
21. In case of sub-broker disputes, inform the main broker in writing about the dispute at the
earliest. If your broker/sub-broker does not resolve your complaints within a reasonable
period please bring it to the attention of the ‘Investor Services Cell’ of the NSE.
22. ß While lodging a complaint with the ‘Investor Grievances Cell’ of the NSE, it is very
important that you submit copies of all relevant documents like contract notes, proof of
 payments/delivery of shares etc. along with the complaint. Remember, in the absence of
sufficient documents, resolution of complaints becomes difficult.
23. Familiarise yourself with the rules, regulations and circulars issued by stock
exchanges/SEBI before carrying out any transaction

Precautions Must One Take Before Investing In Stock Market:

Here are some useful pointers to bear in mind before you invest in the markets:

1. Make sure your broker is registered with SEBI and the exchanges and do not deal with
unregistered intermediaries.
2. Ensure that you receive contract notes for all your transactions from your broker within
one working day of execution of the trades.
3. All investments carry risk of some kind. Investors should always know the risk that they
are taking and invest in a manner that matches their risk tolerance.
4. Do not be misled by market rumours, luring advertisement or ‘hot tips’ of the day.
5. Take informed decisions by studying the fundamentals of the company. Find out the
business the company is into, its future prospects, quality of management, past track
record etc Sources of knowing about a company are through annual reports, economic
magazines, and databases available with vendors or your financial advisor.
6. If you’re financial advisor or broker advises you to invest in a company you have never
heard of, be cautious. Spend some time checking out about the company before investing.
7. Do not be attracted by announcements of fantastic results/news reports, about a company.
Do your own research before investing in any stock.
8. ß Do not be attracted to stocks based on what an internet website promotes, unless you
have done adequate study of the company.
9. Investing in very low priced stocks or what are known as penny stocks does not
guarantee high returns.
10. Be cautious about stocks which show a sudden spurt in price or trading activity.
11. Any advise or tip that claims that there are huge returns expected, especially for acting
quickly, may be risky and may to lead to losing some, most, or all of your money
Stock markets refer to a market place where investors can buy and sell stocks. The price at
which each buying and selling transaction takes is determined by the market forces (i.e. demand
and supply for a particular stock).In other words, a stock market is a market where
company stock is traded between people who want to buy the stock and people who want to sell
stock. Stock is just a slice of a company/organization, if you own over 50% of the stock then you
own a company Let us take an example for a better understanding of how market forces
determine stock prices. ABC Co. Ltd. enjoys high investor confidence and there is an
anticipation of an upward movement in its stock price. More and more people would want to buy
this stock (i.e. high demand) and very few people will want to sell this stock at current market
price (i.e. less supply). Therefore, buyers will have to bid a higher price for this stock to match
the ask price from the seller which will increase the stock price of ABC Co. Ltd. On the contrary,
if there are more sellers than buyers (i.e. high supply and low demand) for the stock of ABC Co.
Ltd. in the market, its price will fall down In earlier times, buyers and sellers used to assemble at
stock exchanges to make a transaction but now with the dawn of IT, most of the operations are
done electronically and the stock markets have become almost paperless.
Now investors don’t have to gather at the Exchanges, and can
trade freely from their home or office over the phone or through Internet. A stock market is made
up of several components Stock exchanges are key companies that allow the stock market to
work as efficiently as it does. They list shares prices for thousands of companies, they list
the bid/ask prices of shares and enable quick electronic transfers of shares between people. Some
stock exchanges that might have heard of include NASDAQ, LSE (London stock exchange) and
the NYSE (New York stock exchange). Companies are vital for a stock market to work! A
company must be listed as a PLC (public listed company) for people to trade it's shares at a stock
market. To be listed as a PLC a company must meet strict financial requirements. Brokers are the
middle men between the stock exchange and the stock buyer (i.e. you). They fetch the buy and
sell prices of stocks from the stock exchange and relay them to the purchasers. It is a legal
requirement that you open a brokerage account to buy or sell stocks Without people who trade
stock (buyers and sellers) a stock market would not work. Buyers can range individuals sitting at
home on their PC to huge multi million dollar investment funds.
History of the Indian Stock Market - The Origin
One of the oldest stock markets in Asia, the Indian Stock Markets have a 200 years old history.
18th East India Company was the dominant institution and by end of the century, busuness in
Century its loan securities gained full momentum

1830's Business on corporate stocks and shares in Bank and Cotton presses started in Bombay.
Trading list by the end of 1839 got broader

1840's Recognition from banks and merchants to about half a dozen brokers

1850's Rapid development of commercial enterprise saw brokerage business attracting more
people into the business

1860's The number of brokers increased to 60

1860-61 The American Civil War broke out which caused a stoppage of cotton supply from United
States of America; marking the beginning of the "Share Mania" in India

1862-63 The number of brokers increased to about 200 to 250

1865 A disastrous slump began at the end of the American Civil War (as an example, Bank of
Bombay Share which had touched Rs. 2850 could only be sold at Rs. 87)

The depression witnessed after the Independence led to closure of a lot

of exchanges in the country. Lahore E stock Exchange was closed down after the partition of
India, and later on merged with the Delhi Stock Exchange. Bangalore Stock Exchange Limited
was registered in 1957 and got recognition only by 1963. Most of the other Exchanges were in a
miserable state till 1957 when they applied for recognition under Securities Contracts
(Regulations) Act, 1956. The Exchanges that were recognized under the Act were:
Many more stock exchanges were established during 1980's, namely:
1. Cochin Stock Exchange (1980)
2. Uttar Pradesh Stock Exchange Association Limited (at Kanpur, 1982)
3. Pune Stock Exchange Limited (1982)
4. Ludhiana Stock Exchange Association Limited (1983)
5. Gauhati Stock Exchange Limited (1984)
6. Kanara Stock Exchange Limited (at Mangalore, 1985)
7. Magadh Stock Exchange Association (at Patna, 1986)
8. Jaipur Stock Exchange Limited (1989)
9. Bhubaneswar Stock Exchange Association Limited (1989)
10. Saurashtra Kutch Stock Exchange Limited (at Rajkot, 1989)
11. Vadodara Stock Exchange Limited (at Baroda, 1990)
12. Coimbatore Stock Exchange
13. Meerut Stock Exchange
At present, there are twenty one recognized stock exchanges in India
which does not include the Over The Counter Exchange of India Limited (OTCEI) and the
National Stock Exchange of India Limited (NSEIL). Indian stock exchange allows a member
broker to perform following activities.Act as an agent,Buy and sell securities for his clients and
charge commission for the same,Act as a trader or dealer as a principal,Buy and sell securities on
his own account and risk

Over The Counter Exchange of India (OTCEI)

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

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

2. The screen-based scrip less trading ensures transparency and accuracy of prices

3. Faster settlement and transfer process as compared to other exchanges

4. Shorter allotment procedure (in case of a new issue) than other exchanges

National Stock Exchange

In order to lift the Indian stock market trading system on par with the international standards. On
the basis of the recommendations of high powered Pherwani Committee, the National Stock
Exchange was incorporated in 1992 by Industrial Development Bank of India, Industrial Credit
and Investment Corporation of India, Industrial Finance Corporation of India, all Insurance
Corporations, selected commercial banks and others.NSE provides exposure to investors in two
types of markets, namely:
1. Wholesale debt market
2. Capital market
Wholesale Debt Market - Similar to money market operations, debt market operations involve
institutional investors and corporate bodies entering into transactions of high value in financial
instruments like treasury bills, government securities, commercial papers etc.

Capital market - provide for the buying and selling of long term debt or equity
backed securities. When they work well, the capital markets channel the wealth of savers to
those who can put it to long term productive use, such as companies or governments making
long term investments. [1] Financial regulators, such as the UK's Financial Services
Authority (FSA) or the U.S. Securities and Exchange Commission (SEC), oversee the capital
markets in their designated jurisdictions to ensure that investors are protected against fraud,
among other duties.21st century capital markets are almost invariably hosted on computer based
Electronic trading systems; most can be accessed only by entities within the financial sector or
the treasury departments of governments and corporations, but some can be accessed directly by
the public. There are many thousands of such systems, most only serving only small parts of the
overall capital markets. Entities hosting the systems include stock exchanges, investment banks,
and government departments. Physically the systems are hosted all over the world, though they
tend to be concentrated in financial centers like London, New York, and Hong Kong. Capital
markets are defined as markets in which money is provided for periods longer than a year.

A key division within the capital markets is between the primary

markets and secondary markets. In primary markets, new stock or bond issues are sold to
investors, often via a mechanism known as underwriting. The main entities seeking to raise long
term funds on the primary capital markets are governments (which may be municipal, local or
national) and business enterprises (companies). Governments tend to issue only bonds, whereas
companies often issue either equity or bonds. The main entities purchasing the bonds or stock
include pension funds, hedge funds, sovereign wealth funds, and less commonly wealthy
individuals and investment banks trading on their own behalf. In the secondary markets, existing
securities are sold and bought among investors or traders, usually on a securities exchange, over-
the-counter, or elsewhere. The existence of secondary markets increases the willingness of
investors in primary markets, as they know they are likely to be able to swiftly cash out their
investments if the need arises.A second important division falls between the stock markets (for
equity securities, where investors acquire ownership of companies) and the bond markets (where
investors become creditors).

Trading at NSE
1. Fully automated screen-based trading mechanism
2. Strictly follows the principle of an order-driven market
3. Trading members are linked through a communication network
4. This network allows them to execute trade from their offices
5. The prices at which the buyer and seller are willing to transact will appear on the screen
6. When the prices match the transaction will be completed
7. A confirmation slip will be printed at the office of the trading member
Advantages of trading at NSE
1. Integrated network for trading in stock market of India
2. Fully automated screen based system that provides higher degree of transparency
3. Investors can transact from any part of the country at uniform prices
4. Greater functional efficiency supported by totally computerized network

Initial Public Offering

An initial public offering (IPO) or stock market launch is the first

sale of stock by a company to the public. It is a type of public offering. As the result of an initial
public offering, a private company turns into a public company. The process is used by
companies to raise expansion capital and become publicly traded enterprises. Many companies
that undertake an IPO also request the assistance of an investment banking firm acting in the
capacity of an underwriter to help them correctly assess the value of their shares, that is, the
share price.In 1602, the Dutch East India Company was the first company in the world to issue
stocks and bonds in an initial public offering.

Reasons for listing

When a company lists its securities on a public exchange, the money

paid by investors for the newly issued shares goes directly to the company (in contrast to a later
trade of shares on the exchange, where the money passes between investors). An IPO, therefore,
allows a company to tap a wide pool of investors to provide itself with capital for future growth,
repayment of debt or working capital. A company selling common shares is never required to
repay the capital to investors.Once a company is listed, it is able to issue additional common
shares via a secondary offering, thereby again providing itself with capital for expansion without
incurring any debt. This ability to quickly raise large amounts of capital from the market is a key
reason many companies seek to go public.

There are several benefits to being a public company, namely:

 1. Bolstering and diversifying equity base
2. Enabling cheaper access to capital
3. Exposure, prestige and public image
4. Attracting and retaining better management and employees through liquid equity
participation
5. Facilitating acquisitions
6. Creating multiple financing opportunities: equity, convertible debt, cheaper bank loans,
etc.
Procedure

IPOs generally involve one or more investment banks known as

"underwriters". The company offering its shares, called the "issuer", enters a contract with a lead
underwriter to sell its shares to the public. The underwriter then approaches investors with offers
to sell these shares.The sale (allocation and pricing) of shares in an IPO may take several forms.
Common methods include:

1. Best efforts contract

2. Firm commitment contract
3. All-or-none contract
4. Bought deal

A large IPO is usually underwritten by a "syndicate" of investment

banks led by one or more major investment banks (lead underwriter). Upon selling the shares,
the underwriters keep a commission based on a percentage of the value of the shares sold (called
the gross spread). Usually, the lead underwriters, i.e. the underwriters selling the largest
proportions of the IPO, take the highest commissions—up to 8% in some cases.Multinational
IPOs may have many syndicates to deal with differing legal requirements in both the issuer's
domestic market and other regions. For example, an issuer based in the E.U. may be represented
by the main selling syndicate in its domestic market, Europe, in addition to separate syndicates
or selling groups for US/Canada and for Asia. Usually, the lead underwriter in the main selling
group is also the lead bank in the other selling groups.Because of the wide array of legal
requirements and because it is an expensive process, IPOs typically involve one or more law
firms with major practices in securities law, such as the Magic Circle firms of London and
the white shoe firms of New York City.Public offerings are sold to both institutional investors
and retail clients of underwriters. A licensed securities salesperson (Registered Representative in
the USA and Canada ) selling shares of a public offering to his clients is paid a commission from
their dealer rather than their client. In cases where the salesperson is the client's advisor it is
notable that the financial incentives of the advisor and client are not aligned.In the US sales can
only be made through a final prospectus cleared by the Securities and Exchange
Commission.Investment dealers will often initiate research coverage on companies so
their Corporate Finance departments and retail divisions can attract and market new issues.The
issuer usually allows the underwriters an option to increase the size of the offering by up to 15%
under certain circumstance known as the green shoe or overallotment option.

Largest IPO’s

1. Agricultural Bank of China US$22.1 billion (2010)

2. Industrial and Commercial Bank of China US$21.9 billion (2006)
3. American International Assurance US$20.5 billion (2010)
4. Visa Inc. US$19.7 billion (2008)
5. General Motors US$18.15 billion (2010)
6. Face book, Inc. US$16 billion (2012)
Value of IPO’s

The US last topped the IPO league tables in 2008; then east overtook
west with China (Shanghai, Shenzhen and Hong Kong) raising $73 billion (almost double the
amount of money raised on the New York Stock Exchange and Nasdaq combined) up to the end
of November 2011. The Hong Kong Stock Exchange raised 30.9 billion in 2011 as the top course
for the third year in a row, while New York raised 30.7 billion.

Issue Price

A company that is planning an IPO appoints lead managers to help

it decide on an appropriate price at which the shares should be issued. There are two ways in
which the price of an IPO can be determined: either the company, with the help of its lead
managers, fixes a price (fixed price method) or the price is arrived at through the process of book
building.Not all IPOs are eligible for delivery settlement through the DTC system, which would
then either require the physical delivery of the stock certificates to the clearing agent bank's
custodian, or a delivery versus payment (DVP) arrangement with the selling group brokerage
firm.

2.1 PROFILE OF STOCK MARKET

Stock Broker

A stock broker is a regulated professional broker who buys and

sells shares and other securities through market makers or Agency Only Firms.Similar roles of a
stock broker Roles similar to that of a stockbroker include investment advisor, and financial
advisor. A stockbroker may or may not be also an investment advisor, and vice versa.Acting as a
principalStockbrokers exclusively trade on their own behalf, as a principal, speculating that
a share or other financial instrument will increase or decline in price. In such cases the term
broker makes little sense and the individuals or firms trading in principal capacity sometimes call
themselves dealers, stock traders or simply traders

List of top stock brokers in India:

1. India Infoline

2. Kotak Securities Ltd.

3. Share Khan

4. Indiabulls

5. Motilal Oswal

6. Bajaj Capital

7. Angel Broking

8. Reliance Money
INDIA INFOLINE

The IIFL (India Infoline) group, comprising the holding company, India Infoline Ltd (NSE:
INDIAINFO, BSE: 532636) and its subsidiaries, is one of India’s premier providers of financial
services.IIFL offers advice and execution platform for the entire range of financial services
covering products ranging from Equities and derivatives, Commodities, Wealth management,
Asset management, Insurance, Fixed deposits, Loans, Investment Banking, Gold bonds and other
small savings instruments.

Equities our core offering, gives us a leading market share

in both retail and institutional segments. Over a million retail customers rely on our research, as
do leading FIIs and MFs that invest billions.Private Wealth Management services cater to over
2500 families who have trusted us with close to Rs 25,000 crores ($ 5bn) of assets for advice.
Investment Banking services are for corporate looking to raise capital. Our forte is Equity
Capital Markets, where we have executed several marquee transactions. Credit &
Finance focuses on secured mortgages and consumer loans. Our high quality loan book of over
Rs. 6,200 crores ($ 1.2bn) is backed by strong capital adequacy of approximately 20%. IIFL
Mutual Fund made an impressive beginning in FY12, with lowest charge Nifty ETF. Other
products include Fixed Maturity Plans. Life Insurance, Pension and other Financial Products, on
open architecture complete our product suite to help customers build a balanced portfolio.

IIFL has received membership of the Colombo Stock

Exchange becoming the first foreign broker to enter Sri Lanka. IIFL owns and manages the
website,www.indiainfoline.com, which is one of India’s leading online destinations for personal
finance, stock markets, economy and business. IIFL has been awarded the ‘Best Broker,
India’ by Finance Asia and the ‘Most improved brokerage, India’ in the Asia Money polls. India
Infoline was also adjudged as ‘Fastest Growing Equity Broking House - Large firms’ by Dun &
Bradstreet.Our research is available not just over the Internet but also on international wire
services like Bloomberg, Thomson First Call and Internet Securities besides others where it is
amongst one of the most read Indian brokers.IIFL is a listed company with a consolidated group
networth of about Rs 1,800 crores. The income and net profit during FY2010-11 were Rs. 14.7
bn and Rs. 2.1 bn respectively. The Group has a consistent and uninterrupted track record of
profits and dividends since its listing in 2005.

CORE MANAGEMENT TEAM

Chairman, India Infoline Ltd. Nirmal Jain

Managing Director, India Infoline Ltd. R. Venkataraman

Independent Director, India Infoline Ltd. Nilesh Vikamsey

Independent Director, India Infoline Ltd. Kranti Sinha

Independent Director, India Infoline Ltd. A. K. Purwar

Independent Director, India Infoline Ltd. Sunil Kaul

KOTAK SECURITIES
 Originally established in 1994, Kotak Securities is a subsidiary of
Kotak Mahindra Bank, which services more than 7.4 lakh customers. The firm has a wide network
of more than 1400 branches, franchisees representative offices, and satellite offices across 448
cities in India and offices in New York, London, Dubai, Mauritius and Singapore. We process
more than 400000 trades a day which is much higher than some of the renowned international
brokers.The company is a corporate member of both The Bombay Stock Exchange (BSE) and The
National Stock Exchange of India (NSE). Our operations include stock broking services for
trading in stock markets through branches & internet and distribution of various financial products
including investments in IPOs, Mutual Funds and Currency Derivatives. Currently, Kotak
Securities is one of the largest broking houses in India with substantial geographical reach to Asia
Pacific, Europe, Middle East and America. Kotak Securities Limited has Rs. 1,202 crore of Assets
Under Management (AUM) as of 31st Dec, 011.

Research Expertise:
We specialise in Fundamental and Technical analysis backed by a team of highly trained and
qualified individuals.Our full-fledged research division is involved in Macro Economic studies,
Sectorial research and Company Specific Equity Research which publishes in-depth stock market
analysis. This is combined with a strong and well networked sales force which helps deliver
current and up to date market information and news.We are also a depository participant with
National Securities Depository Limited (NSDL) and Central Depository Services Limited (CDSL).
By being a stock broker and depositary participant, we provide dual benefit in our services
wherein the investors can avail our stock broking services for executing the transactions and the
depository services for settling them. Our Portfolio Management Service comes as an answer to
those who would like to grow exponentially on the crest of the stock market, with the backing of
an expert.
INNOVATORS:

1. We have been the pioneers in providing many products and services which have now
become industry standards for stock broking in India. Some of them include:
2. Mobile stock trading application to keep track of your investments even on the go
3. Facility of Margin Finance to the customers for online stock trading
4. Investing in IPOs and Mutual Funds on the phone
5. SMS alerts before execution of depository transactions
6. Auto Invest - A systematic investing plan in Equities and Mutual funds
7. Provision of margin against securities automatically against shares in your Demat
account

AWARDS
1. UTI MF - CNBC TV18 Financial Advisor Awards - Best Performing Equity Broker
(National) for the year 2009

2. Best Brokerage Firm in India by Asia money in 2009, 2008, 2007 & 2006

3. Best Performing Equity Broker in India - CNBC Financial Advisor Awards 2008

4. Avaya Customer Responsiveness Awards (2007 & 2006) in Financial Services Sector

5. The Leading Equity House in India in Thomson Excel Surveys Awards for the year 2007

6. Euro money Award (2007 & 2006) - Best Provider of Portfolio Management: Equities

7. Euro money Award (2005)-Best Equities House In India

8. Finance Asia Award (2005)-Best Broker In India

9. Finance Asia Award (2004)- India's best Equity House

SHAREKHAN
 Share khan is India’s leading online retail broking house. Launched
on February 8, 2000 as an online trading portal, Sharekhan has today a pan-India presence with
over 1,529 outlets serving 950,000 customers across 450 cities. It also has international presence
through its branches in the UAE and Oman. Sharekhan offers services like portfolio
management, trade execution in equities, futures & options, commodities, and distribution of
mutual funds, insurance and structured products. These services are backed by quality
investment advice from an experienced research team which offers investment and trading ideas
based on fundamental and technical research respectively, market related news, statistical
information on equities, commodities, mutual funds, IPOs and much more. Sharekhan is a
member of the Bombay Stock Exchange, the National Stock Exchange and the country’s two
leading commodity exchanges, the NCDEX and MCX. Sharekhan is also registered as a
depository participant with National Securities Depository and Central Depository Services.
Sharekhan has set category leadership through pioneering initiatives like Trade Tiger, an
Internet-based executable application that emulates a broker terminal besides providing
information and tools relevant to day traders. Its second initiative, First Step, is targeted at
empowering the first-time investors. Sharekhan has also set its global footprint through the
“India First” initiative, a series of seminars conducted by Sharekhan to help the non-resident
Indians participate and benefit from the huge investment opportunities in India.
TOP MANAGEMENT OF SHAREKHAN LTD
CEO Tarun Shah

Director, Product Development Jaideep Arora

Director, Operations, Finance and Legal Shankar Vailaya

Functions

INDIABULLS

In middle of 1999, when e-commerce was just about

starting in India, Sameer Gehlaut and his close IIT Delhi friend Rajiv Rattan got together and
bought a defunct securities company with a NSE membership and started offering brokerage
services. A Few months later, their friend Saurabh Mittal also joined them. By December 1999,
the company embarked on its journey to build one of the first online platforms in India for
offering internet brokerage services. In January 2000, the 3 founders incorporated Indiabulls
Financial Services and made it as the flagship company.In mid 2000, Indiabulls Financial
Services received venture capital funding from Mr L.N. Mittal & Mr Harish Fabiani. In late
2000, Indiabulls Securities, a subsidiary of Indiabulls Financial Services started offering online
brokerage services and simultaneously opened physical offices across India. By 2003, Indiabulls
securities had established a strong pan India presence and client base through its offices and on
the internet.In September 2004, Indiabulls Financial Services went public with an IPO at Rs 19 a
share. In late 2004, Indiabulls Financial Services started its financing business with consumer
loans. In March 2005, Indiabulls Properties Private Ltd, a subsidiary of Indiabulls Financial
Services, participated in government auction of Jupiter Mills, a defunct 11 acre textile mill
owned by NTC in Lower Parel, Mumbai. Indiabulls Properties private Ltd won the mill in
auction and that purchase started Indiabulls real estate business. A few months later, Indiabulls
Real Estate company pvt ltd bought Elphinstone mill in Lower Parel, another textile mill
auctioned by NTC.
With real estate business gaining size, Indiabulls Financial
Services demerged the real estate business under Indiabulls Real Estate and each shareholder of
Indiabulls Financial Services received additional share of Indiabulls Real Estate through the
demerger. Subsequently, India bulls Financial Services also demerged Indiabulls Securities and
each shareholder of India bulls Financial Services also received a share of Indiabulls
Securities.In year 2007, India bulls Real Estate incorporated a 100% subsidiary, Indiabulls
Power, to build power plants and started work on building Nashik & Amrawati thermal power
plants. Indiabulls Power went public in September 2009.Today, Indiabulls Group has a net worth
of Rs 19,320 Crore & has a strong presence in important sectors like financial services, power &
real estate through independently listed companies and Indiabulls Group continues its journey of
building businesses with strong cash flows.
INDIABULLS Group
MANAGEMENT TEAM
Vice Chairman Mr Rajiv Rattan

Vice Chairman Mr Saurabh Mittal

Group Spokesperson Mr Gagan Banga

Group President Mr Ashok Kacker

Group CLO Mr Saket Bahuguna

Group CFO Mr Ashok Sharma

Group Director Mr Ajit Mittal

Group Director Mr Gurbans Singh

Group CIO Mr Tejinderpal Singh Miglani

MOTILAL OSWAL

Motilal Oswal Securities Ltd. (MOSL) was founded in 1987 as a small sub-broking unit, with
just two people running the show. Focus on customer-first attitude, ethical and transparent
business practices, respect for professionalism, research-based value investing and
implementation of cutting-edge technology have enabled us to blossom into an over 1500
member team.Today we are a well diversified financial services firm offering a range of
financial products and services such as Wealth Management, Retail Broking and Distribution,
Institutional Broking, Asset Management, Investment Banking, Private Equity, Commodity
Broking and Principal Strategies.

We have a diversified client base that includes retail customers (including High Net worth
Individuals), mutual funds, foreign institutional investors, financial institutions and corporate
clients. We are headquartered in Mumbai and as of March 31st, 2012, had a network spread
over 552 cities and towns comprising 1,579 Business Locations operated by our Business
Partners and us. As on March 31st, 2012, we had 738,156 registered customers.
Research is the solid foundation on which Motilal Oswal Securities’ advice is based. Almost
10% of revenue is invested on equity research and we hire and train the best resources to become
our advisors. At present we have an expert team of Research Analysts researching 25+ sectors
and commodities. From a fundamental, technical and derivatives research perspective, Motilal
Oswal`s research reports have received wide coverage in the media ). Our consistent efforts
towards quality equity research have reflected in an increase in the ratings and rankings across
various categories in the Asia Money Brokers Poll over the years.Our unique Wealth Creation
Study, authored by Mr. Raamdeo Agrawal, Joint Managing Director, is now in its 17th year.
Investors keenly await this annual study for the wealth of information it has on the companies
that created wealth during the preceding five years.

List of Board of Directors of Motilal Oswal Securities Ltd. (MOSL)

Chairman & Managing Director Motilal Oswal

Joint Managing Director Raamdeo Agrawal

Managing Director- Institutional Equites & Navin Agarwal

Investment Banking

Associate Director Sameer Kamath

Associate Director - Head Marketing Ramnik Chhabra

Associate Director - Head HR & Admin Sudhir Dhar

BAJAJ CAPITAL
In a world full of 'ready-to-give-free-of-cost-advice' people it is necessary that you choose the
one that works in your interest. You need help from a professional investment advisor, who sees
investments from your perspective. That's what we do.

WE CREATE WEALTH:
1. 45 years of experience as Investment Advisors and Financial Planners
2. We give you impartial, research-based and need-based advice
3. We offer a wide range of financial products and services
4. Personalized wealth management advice: We offer investment guidance and portfolio
planning.
5. Prompt, courteous service, 24 x 7 online accessibility- www.bajajcapital.com
6. Countrywide network of over 200 branches
7. Strong team of qualified and experienced professionals including CAs, MBAs, MBEs,
CFPs, CSs, Insurance Experts, Legal Experts and others
8. SEBI-Approved Category I Merchant Bankers
9. Group Co BCIBL is an IRDA-licensed Direct Insurance Broker
While choosing an advisor, consider the following factors:
1. YOUR ADVISOR MUST BE AN ORGANISATION:

Your advisor needs to outlive the life of your investments. This is possible only if your
advisor is a company or institution rather than an individual advisor. Also a company has
better resources, research expertise, standardized processes and qualified staff to render
quality advice and services. It is much safer to deal with a company that has a reputation
for honesty, integrity, transparency and ethical dealings than with an individual.
2. YOUR ADVISOR MUST BE EXPERINECED & REPUTED:

Find out the background and certifications of the firm you want to appoint as your
investment advisor. The more the experience of your advisor, the better it is. Find out
about the advisor's clientele. This will give you a better idea of what to expect as a
client— and learning about their security guarantees will give you confidence that you're
making the right choice.
 3. MUST HAVE AN ALL-INDIA PRESENCE:

In today's dynamic world, you never know which place or city you might be located at, in
the future; an advisor with a national footprint will ensure that you do not miss his advice
and service, irrespective of your location.
4. KNOW THE PRODUCTS AND SERVICES:

Decide what you need. Then choose an invest advisory firm that caters to your needs and
matches your expectations. Know the breadth and depth of the investment firm's
products, the financial services it offers and the planning process it involves to make your
wealth grow.
5. MUST HAVE A RESEARCH DEPARTMENT:

This ensures that you get quality advice on time and are update about the market trends
and changes so that accordingly you can review your portfolio.
6. MUST HAVE AN ONLINE INVESTMENT PLATFORM:

Tech savvy investors will find this attribute very attractive as they will be able to keep
track of and manage their investments at the click of a mouse from the comfort of their
office or home, at any point of time.
Their Vision:

To be the most preferred financial planning and investment advisory company in India by
providing consumers with informed choices of lasting value, create wealth for them to make
their tomorrow better than today.

Their Mission, aims and objectives:

Mission Statement
Bajaj Capital aims to be the most useful, reliable and efficient provider of Financial Services. It
is our continuous endeavour to be a trustworthy advisor to our clients, helping them achieve their
financial goals.
Aims
1. To serve our clients with utmost dedication and integrity so that we exceed their
expectations and build enduring relationships.
2. To offer unparalleled quality of service through complete knowledge of products,
constant innovation in services and use of the latest technology.
3. To always give honest and unbiased financial advice and earn our cilent's everlasting
trust.
4. To serve the community by educating individuals on the merits of Financial Planning and
in turn help shape a financially strong society.
5. To create value for all stake holders by ensuring profitable growth.
6. To build an amicable environment that accords respect to every individual and permits
their personal growth.
7. To utilize the power of teamwork to function as a family and build a seamless
organization.

List of Board of Directors of Bajaj Capital

Chairman Mr. K.K. Bajaj

Vice Chairman & Managing Director Mr. Rajiv Deep Bajaj

Managing Director Mr. Sanjiv Bajaj

Group CEO & Director Mr. Anil Chopra

ANGEL BROKING

Angel Broking's tryst with excellence in customer relations began

in 1987. Today, Angel has emerged as one of the most respected Stock-Broking and Wealth
Management Companies in India. With its unique retail-focused stock trading business model,
Angel is committed to providing ‘Real Value for Money’ to all its clients.The Angel Group is a
member of the Bombay Stock Exchange (BSE), National Stock Exchange (NSE) and the two
leading Commodity Exchanges in the country: NCDEX & MCX. Angel is also registered as a
Depository Participant with CDSL.

Our Business

1. Equity Trading
2. Commodities
3. Portfolio Management Services
4. Mutual Funds
5. Life Insurance
6. IPO
7. Depository Services
8. Investment Advisory

Angel Group

1. Angel Broking Ltd.

2. Angel Commodities Broking Ltd.
3. Angel Securities Ltd.

Vision:

To provide best value for money to investors through innovative products, trading/investments
strategies, state of the art technology and personalized service.

Motto

To have complete harmony between quality-in-process and continuous improvement to deliver

exceptional service that will delight our Customers and Clients.

CRM Policy : Customer is King

“A Customer is the most Important Visitor on our premises. He is not dependent on us, but we
are dependent on him. He is not an interruption in our work. He is the purpose of it. He is not an
outsider in our business. He is part of it. We are not doing him a favor by serving him. He is
doing us a favor by giving us an opportunity to do so.”

- Mahatma Gandhi

Business Philosophy

1. Ethical practices & transparency in all our dealings

2. Customers interest above our own
3. Always deliver what we promise
4. Effective cost management

Quality Assurance Policy

We are committed to providing world-class products and services which exceed

the expectations of our customers, achieved by teamwork and a process of
continuous improvement.

List of Board of Directors of Angel Group

Founder, Chairman Mr. Dinesh Thakkar

&
Managing Director
Managing Director - Mr. Lalit Thakkar
Institutional broking

Chief Strategy Officer Mr. Amit Majumdar

Executive Director Mr. Vinay Agrawal

Equity Broking
Executive Director - Mr. Nikhil Daxini
Sales and Marketing
 Executive Director Mr. Santanu Syam
– Operations

Associate Director – Mr. Ketan Shah

Information Technology
and B2B Business
Associate Director - Mr. Naveen Mathur
Commodities & Currencies

RELIANCE MONEY

Reliance Securities comes from the house of Reliance Capital,

one of India’s leading & prominent financial houses.Founded in 1986, Reliance Capital has
come a long way from being into steady annuity yielding businesses such as leasing, bill
discounting, and inter-corporate deposits to diversifying its activities in the areas of asset
management and mutual fund; life and general insurance; consumer finance and industrial
finance; stock broking; depository services; private equity and proprietary investments;
exchanges, asset reconstruction; distribution of financial products and other activities in financial
services. Reliance Capital has a net worth of Rs. 7,887 crore (US$ 2 billion) and total assets of
Rs. 32,419 crore (US$ 7 billion) as on June 30, 2011.

Reliance Securities

Reliance Securities Limited is a Reliance Capital company and part

of the Reliance Group.Reliance Securities endeavors to change the way investors transact in
equities markets and avails services. It provides customers with access to Equity, Derivatives,
Portfolio Management Services*, Investment Banking*, Mutual Funds & IPOs. It also offers
secured online share trading platform and investment activities in secure, cost effective and
convenient manner. To enable wider participation, it also provides the convenience of trading
offline through variety of means, including Call & Trade, Branch dealing Desk and its network
of affiliates.Reliance Securities has a pan India presence at more than 1,700 locations.Reliance
Capital is one of India's leading and fastest growing private sector financial services companies,
and ranks among the top 3 private sector financial services and banking groups, in terms of net
worth.

Awards & Achievements

1. Reliance Securities has been rated no. 1 by Star com Worldwide for online security and
cost effectiveness in 2007
2. 'Debutant Franchisor of the Year' at the 5th International Franchisee & Retail show 2007
3. 'Best in category Service Franchise' at the 6th International Franchise & Retail show 2008
4. 'Best E-Brokerage Houser 2008' (runner's up) by Outlook Money NDTV Profit Awards
5. 'Largest E-Broking House & Best Equity Broking House for the year 2009' by Dun &
Bradstreet
6. 'Largest E-Broking House 2010' by Dun & Bradstreet
7. 'My FM Stars of the Industry 2011' for excellence in Online Demat
8. Reliance Securities Limited is now ISO 9001:2008 certified for Online Trading Platform
9. 'Brand Leadership Legacy Award' at the Asian Leadership Awards - Dubai, 2011
10. *Offered through group companies

MANAGEMENT TEAM

Reliance Securities is lead by a team of distinguished individuals dedicated towards scaling the
company to greater heights through innovative products and services that create value for our
customers & stake holders.

Executive director Vikrant Gugnani

Chief Financial Officer Sanjay Wadhwa

Head Compliance Suresh T Vishwanathan

Head Research Hitesh Agrawal