EXECUTIVE SUMMARY

Theoretical and practical knowledge are the two different but interrelated aspects, which makes the concept clear and vision bright and help in facing the actual situations. Although theory is the first and important step which acts as a base, but practical knowledge is that aspect which bridges the gap between imaginations and realities. Training and Research are the integral part of the work situations and are closely related to the career and promotion structures. So practical knowledge is very important for developments of thoughts and giving shape to them.

Frequent field training has been made a part of our training program. This type of practical field training is very helpful as: It installs feeling of belongingness. Feeling of acceptance. Development of better understanding of concepts. Knowledge of real life situations. Thus practical training could be taken as a beginning of a process of indoctrination into the ways of a business organization and it is the first positive step, which would be helpful in future, prospect. This project report has been divided into various chapters, which includes companys profile, products and services, dematerialization concept, analysis and suggestions. Although it is very difficult to reproduce everything learnt during the training, yet a comprehensive attempt has been made describe the details of the work that to has been performed during the training period.

1.1 CONCEPT OF STOCK EXCHANGE

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The stock exchanges are the important segment of its capital market. If the stock exchanges are well regulated and function smoothly, then it is an indicator of healthy capital market. If the state of the stock exchange is good, the overall capital market will grow and otherwise it can suffer a great set back which is not good for the country. The stock market and the capital market are controlled by the government at various stages. A capital market deals in financial assets, excluding coin and currency. The majority of financial assets are comprised by banking accounts, Pension and provident funds, insurance policies, shares and securities. Financial assets are claim of holders over issuer (business firms and governments). They enter low different segment of financial market. Those having short maturities that are non transferable like bank savings and current accounts set the identification of the monetary financial assets. This market is known as money market. Equity, Preferential shares and bonds and debentures issued by companies and securities issued by the government constitute the financial assets which are traded in the capital market. Both money market and capital market constitute the financial market. Capital market generally known as stock exchange. This is a institution around which every activity of national capital market revolves. Through the medium stock exchange the investor gets on impetus and motivations to invest in securities without which they would not be able to liquidate the securities. If there would have been no stock exchange many of the savers would have hold their saving either in cash i.e. idle or in bank with low interest rate or low returns. The stock exchange provides the opportunity to investors for the continuous trading in securities. It is continuously engaged in the capital mobilization process. Another consequence of non existence of stock exchange would have been low saving of the community, which means low investment and lower development of the country.

Full Form of Stock Exchange:

S T O C K Ex C H A N G E

Securities provide for investor. Tax benefits planning and exemption. Optimum return on investment. Cautious Approach. Knowledge of Market. Exchange of Securities Transacted. Cyclopedia of Listed Companies. High yield. Authentic Information New Entrepreneur encouraged. Guidance of Investor & Company. Equity

HISTORY AND ORIGIN OF STOCK EXCHANGE

The first stock exchange was established in London in the year 1773. Just after establishment of London stock exchange various countries like France, Germany and USA also established their own stock exchange markets. In India, the first exchange established in
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Bombay in the year 1875. Later, in year 1908, Calcutta stock exchange was established which was recognized in the company in 1923. The government of India has recognized 23 stock exchanges, which was located at major business centers in different parts of country.

Till the mid fifties the stock exchange was governed by their own bye laws and regulations with very little interface by the government. In the year 1925, the government of Bombay promulgated an act securities contracts and control act, 1925 for regulation of the stock exchange. During the Second World War trading outside the stock exchange flourished with adverse effect on investors confidence due to baseless issues and higher rate of liquidation of companies. In 1956, the center government passed contracts (regulation) act 1956, which came into force through out the country on 20th Feb. 1957.

Recently the government of India has enacted an act (SEBI Act 1952), which provides for the establishment of a board to protect the interest of investor in securities, The SEBI has emerged as a monitoring institution of the country for the development and regulation of stock market, SEBI has issued from time to time guidelines to insider trading, listing of securities, registration of intermediaries, mutual funds etc.

The securities and exchange board of India (SEBI) is considered ring a strategy to restructure stock exchange to make most of them sustaining. The SEBI is working on the experience of the United Kingdom, where 12 stock exchanges were merged to form the London stock exchange.

MANAGING OF STOCK EXCHANGE

Management of stock exchange is done by an elected body of members. These bodies are known by different names in different stock exchange. For example, the BOMBAY, INDORE and AHEMDABAD stock exchange are managed by a governing board.

Council of management governs the MADRAS stock exchange. A committee manages the CALCUTTA stock exchange. These governing bodies are powerful bodies enjoying extensive administrative power of management and control over their respective stock exchange. The day-to-day function of the stock exchanges are executed by the sub-committees like the defaulters committee listing committee, settlement committee etc.

BASICS OF STOCK MARKET

Every business has a lot of assets i.e, machinery, buildings, furniture, stock-in-trade, cash, etc. It will also have liabilities. This is what the company owes to other people. Bank loans, money owed to people from whom things have been bought on credit, are the examples of liabilities. Take away the liabilities from the total assests and you are left with the capital.

ASSETS LIABILITIES = CAPITAL

Capital is the amount that the owner has invested in the business. As the business grows and makes profits, it adds to its capital. This capital is subdivided into shares(or stocks).If a companys capital is Rs.10crore,that could be divided into 1 crore shares of Rs.10 each. Part of this capital, or some of the shares, is held by the people who had started the business (Promoters). Investors hold the other shares. These investors are people ,mutual funds and other institutional investors.

Participants in Stock Markets

The various participants of stock market are:

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1. Stock Exchange A place where shares are bought and sold. 2. Investors The various types of investors are: a) Retail Investors An investor who buys and sells securities for their own behalf not for an Organisation.Retail investors typically trade in much smaller than Institutional Investors. b) HNIs High-net-worth individuals (HNI) are a person with a high net worth. Typically These individuals are defined as having investable assets (financial assets not Including primary residence) in excess of US$ 1 million. c) FIIs Companies which are registered outside India but are investing in India are Known as FIIs.Institutional investors include hedge funds, insurance companies, pension funds and mutual funds.

d) Mutual Funds A fund that pools the money of its investors to buy a variety of securities. 3. Depository A bank or company which holds funds or securities deposited by others, and where
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Exchanges of these securities take place, for eg., NSDL.

NEED OF STOCK EXCHANGE

Providing regular market to the securities.

Encouraging investment habits in general public.

Providing Liquidity to the securities.

Providing a mechanism for continue our evolution.

Acting as an intermediary between buyers and sellers.

Providing stability in the prices of securities.

Publishing regularly stock price quotation.

Providing facility of a trading hall for the members to transact business.

CAPITAL MARKET
Capital market provides long term capital to the industrial sector for the expenditure on land, plant and machinery, building etc, which are permanent and used for production. The long term finance is met by the market.
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Capital Market Is Of Two Types 1. Primary capital market. 2. Secondary capital market.
In simple term Primary capital market is called the market of new issues and secondary capital market is called the market of exiting issues.

PRIMARY MARKET
Also termed as new market is concerned with primary issue of securities by enterprises for their establishment, expansion, modernization and reorganization etc. Primary market is related to the generation of capital through new issue of shares, debentures and bonds, where investors may directly apply for the allotment of securities. The operation of primary market includes: (1) New issue by existing or new company. (2) Right issue. (3) Issue of debentures and bonds. Primary market is considered to be the easiest way through which funds may be collected for corporate sector. The SEBI has issued certain procedural guideline for the simplification and standardization of liberation economic policy, the primary market has shown a tremendous growth in the last few years.

SECONDARY MARKET
It is that market where securities are regularly bought and sold. The primary market is related with the issues whereas the secondary market relates to the trading of such securities. The secondary market provides liquidity to the investors. Trading in secondary market is governed by the bye laws and regulations of the stock exchange concerned. After the securities are listed on a recognized market these can be freely transacted through its
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members. The trading operations are carried for a fixed number of hours in a trading hall called trading ring. The stock exchange provides necessary information to the investors. The SEBI has issued various guidelines to regulate and control the operations of secondary market . There are different types of secondary markets operating in the country.

1.

Recognized Stock Exchange

Recognized Stock Exchange means a stock exchange which for the time being has been recognized by the central government under Section(4) of the securities contracts (Regulation) Act 1956. According to SEBI directions all operations in securities must by transacted only through recognized stock exchange in the country.

2. Kerb Market
This is an unofficial market where the transactions are made after the normal trading hours recognized by the central Government under the securities contracts (Regulation) Act, 1956. Section of this act states that no person, except with the permission of the central government, shall organize or assist in organizing or be a member of the stock exchange (other than recognized stock exchange) for the purpose of assisting in, entering in to or performing any contract in securities. Under section 23 of the securities contracts (Regulation) Act, 1956 any person who violates the provisions of selection 19 shall be punishable with imprisonment for a term, which may extend to one year, or with fine or with both.

BASIC REQUIREMENT FOR STOCK BROKERS

Trading will be on existing stock exchanges through order routing system for execution of trades. Therefore, stockbrokers are to comply with the following before the start of trade on Internet.
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1. The broker must have a net worth of Rs.50 lakh if he wants to avail the facility of Internet for his own.
2. Provision for maintenance of adequate backup system.

3. The software system to be used by him should be secured and reliable. 4. To employ the qualified staff for this purpose. 5. To send order/trade confirmation to the client also through e-mail. 6. The contract notes must be issued to the clients as per existing regulation within 24 hours of the execution of trades. 7. The broker and his client should use authentication technologies.

The above are some of the important pre-requisites for the stockbroker should intend to take benefits of trading on Internet. However, detailed guidelines issued by the SEBI for the stock exchange.

KINDS OF STOCK BROKERS

There are different kinds of brokers. In other words we can say that the brokers function on the internet trading is of six types. When they work differently they are called by different names. We will discuss these one by one.

(1) Commission Broker

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All most all the brokers buy and sell securities for earning a commission. From investor point of view he is the most important person and is responsible to buy and sell stoke for his customer. It means that he acts as an agent for investor and earns commission for his services rendered. The broker is also an independent dealer in securities. He purchases and sells securities in his own name but he is not allowed to deal with non-member.

(2) Jobber
He is a professional speculator who works for profit called turn. He makes a continuous auction in the market in the stoke in which he is specialized. He trades in the market even for small difference in the prices and helps to maintain liquidity in the stoke exchange.

(3) Floor Broker

The floor broker buys and sells shares for the other broker on the floor of the exchange. He is an individual member owns his seat and receives his own commission on the orders he execute. He helps other brokers when they buy and as compensation receives a portion of the brokerage.

(4) Odd lot dealer

For trading in stock exchange there are certain number of shares fixed to be transacted in a lot, this is known as round lot which is usually a, 100 shares. Anything less than the round lot are odd lot. If a person is in possession of odd lot of shares i.e. 10, 20, 30, 40 etc. He will have to look for the odd lot dealer. The dealer gets his profit on the basis of the difference in the price at which he buys and sells the shares in odd lot gets the price less than the prices of the round lots.

(5) Badliwala
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He is the person who finance or provide credit facilities to the market. For this service he charges a fees called contango or backwardation charges. The badliwala gives a fully secured loan for period of 2 to 3 weeks.

(6) Arbitrageur
A person who is specialist in dealing with securities in different stock exchange centers at the same time, he makes a profit by the difference in the piece prevailing in different centers of the market activity. For example the rate of certain scrip is higher in some stock exchange than other one. In this case the broker will buy the scrip from the market at lower price and will sell the scrip in the market at higher price. The profit of the arbitrageur depends on the ability to get the prices from different centers before trading in other stoke exchanges. A sub-broker act as an agent of stock-broker. He is not a member of stock exchange. He assists in buying, selling or dealing in securities through in stockbroker. The broker and subbroker should enter into an agreement in which the obligations of both should be specified. Sub-brokers are intermediaries between the broker and he investor. Sub-brokers must be registered with the SEBI, for dealing in securities. For getting registered with SEBI, he must fulfill certain conditions and must follow code of conduct, rules and regulations made from time to time.

MARKET MAKERS
Market makers are a designated specialist in the specified securities. They make both bid and offer at the same time. Bid price means the quoted price at which they would pay to a prospective seller. Offer or asking price is the price which they would charge from a prospective buyer. The market makers quotes are binding on them up to a certain commitment. A market maker has to abide by rules and regulations of the concerned stock exchange. He is exempt from margin- requirement.
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As per the listing requirements. a company where its paid -up capital is Rs.3 Crore but not more than Rs. 5 Crore and having a commercial operation for less than 2 years should appoint a Market Maker at the time of issue of securities. The two-way quotes should be offered by the Market Maker for a specified stock for a minimum period of 18 months from the date of trading on the stock exchange.

JOBBERS
Jobber is also named as Taravaniwalla. He is a person who specializes in stocks at the same trading floor. There may be more than one jobber in case of actively traded scripts. Jobbers offer two-way quotes for the scrip with a small difference in price and thus they act as a Market Maker and provides liquidity to the market. The jobber or taravaniwalla generally specialize in those shares which are relatively less active and he receives orders from those other members who are away from the market. The order is executed by auction or negotiation.

PORTFOLIO CONSULTANT
A combination of securities such as socks, bonds and Money Market instruments is called as portfolio. Whereas the portfolio consultants are the persons or firms or companies who advise or direct or undertake the management or administration of securities or funds on behalf of their clients. The portfolio management can be discretionary or non-discretionary.

INSTITUTIONL INVESTORS
Institutional investors mean the different investment institutions which mobilize the savings of the people and invest them in different types of securities Like ICICI, IDBI, GIC, and LIC.

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Factors influencing investors sentiments, attitudes and expectations

There are various factors which cannot be enumerated but we can highlight few of them in three broad categories: a) Companys earning ability and its goodwill in market. b) Overall Macro-Economic Situation of the Country: Indicators like overall Economic Growth, Inflation level, Interest Rates and most importantly prospects For growth are considered by investors.
c) Political and Social stability of the country : factors like stability of

Government and prevalence of peace and harmony in various parts of the country.

d) Legal regulations imposed on investments : Legal regulations imposed by the

govt. Or its bodies on various categories of Investors also determine the sentiments of various groups of investors. e) Panic among investors regulates stock markets as they are based on Information which are baseless or part information can trigger sell-off in markets or rise in the market.

How to make money in stock market ?

There are two modes: a) Offline Trading Its simply means going to a broker house placing order on telephone by the customer by calling on a broker. But, at first one has to open a demat and trading account with a broker.
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b) Online Trading Internet has changed the way to do trading. The entries process is speedy with limited to zero paper work. The process of online trading has become seamless. All that is needed is a PC, a modem, subscription to an Internet Service Provider (ISP),a saving and a depository account and there is a wide choice of online trading brokers to choose from. Log on to the brokers site of choice to get live real time quotes, place a buy or sell order on the spot, and direct the site to debit the requisite amount. In just a few seconds, the confirmation, after the trade settlement and Depository accounts is reflected. The changes can be viewed anywhere anytime. It offers the best in technology and service bringing payment and settlements online just a few clicks away.
Documents required to opening of Demat account: Requirement for opening Demat a/c: All investors have to submit their proof of identity and proof of address along with the prescribed account opening form. Proof of Identity: You can submit a copy of Passport, Voters ID Card, Driving License or PAN Card with photograph. Proof of Address: You can submit a copy of Passport, Voters ID Card Driving License, and PAN Card with photograph, Ration Card or Bank passbook as of address. You must remember to take original documents to the DP for verification. Passport size photograph

The above are mandatory requirements as per Securities and Exchange Board of India.

It is a comprehensive, integrated share trading facility, which allows you to manage your share portfolio and place, buy and sell orders in markets. Online Trading is also integrated with National Bank Accounts, which means use of transactional accounts for share sales theres no need to set up a separate cash management account.
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In Online Trading, password and ID number are given that enables to log on to a special screen which shows all the stock prices and through which selling and buying of shares can be done, also it helps one to access their account and see their portfolio 24 hours a day,365 days of the year. Online Trading helps in knowing the prices at which the shares are picked, the time when shares are picked, the volume of shares picked and also the current rate of share. After the buying and selling order confirmation is emailed or the usual contract note is delivered. Contract notes are the documents that record every sale and purchase of stocks. It is absolutely essential that you collect a contract note for every transaction that you make. This is the proof of the transaction.

This can be explained through a diagram:

The Client places an order via the net by logging on to his brokers site.

The Broker accepts and executes the order, and places it with the exchange.

The broker accepts the order after checking the share limit for the day.

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The Broker makes the payment either directly via the clients bank account or pays through his own account and recovers it later from the client.

The exchange receives money and completes the settlement.

The client is intimated about the settlement either through the demat account or via e-mail.

Benefits of Online Trading

This mode of trading has shifted the trading power from stockbrokers to individual investors. The advantages are that it:

a) Ensures the best price for investors. This technique offers the best price for the buying and selling transactions of The investors, by ensuring proper matching of their orders within the with regard to display of information relating to the Specific stocks and Company
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profiles, the investors will be able to get the best quote for the shares. This lead to a reduction in the transaction cost for the investors.

b) Offers liquidity to the investors.

Online trading offers 24-hour trading facilities or trading for longer hours when compared to the traditional stock exchanges. This provides added liquidity to the investors. Online trading gives greater transparency to the investors by providing them an audit trail. This involves a complete integrated electronic chain starting from order placement, to clearing and settlement and finally ending with a credit to the depository account of the investor. All these stages are subject to inspection, thus bringing in transparency into the system.

c) Enables hassle free trading. Online trading integrates the bank, the brokerage firm and the demat accounts, which leads to easy and paperless trading for the client.

d) Allows quick trading. The investor will be able to execute the entire trading transaction ,right from logging on to the brokers site, to the execution and settlement of his bank account, in a very period of time.

e) Provides a level playing field. Trading on the net, gives even the smallest retail investor access to information that earlier was available only to the big traders. This provides a level playing field for all investors in the securities market.

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f) Reduces the settlement risk.

This method of training reduces the settlement risk for the investor, as in this case no short sale is possible, i.e, the seller will not be able to sell the securities unless he has their actual possession. In the case of a demat account (required for an online transaction),when a seller wants to sell the securities, his demat account is checked by the Depository Participant before executing the sale transaction. This reduces the settlement risk for the buyer ,who is assured of the delivery of the securities.

Indian Stock Market Overview

Indian stock market comprises of two exchanges 1. National Stock Exchange. 2. Bombay Stock Exchange.

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 Century East India Company was the dominant institution and by end of the century, business in its loan securities gained full momentum
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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 1850's

Recognition from banks and merchants to about half a dozen brokers Rapid development of commercial enterprise saw brokerage business attracting more people into the business

1860's 1860-61

The number of brokers increased to 60 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 1865

The number of brokers increased to about 200 to 250 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)

THERE ARE TWO MAIN STOCK EXCHANGE IN INDIA

NATIONAL STOCK EXCHANGE

BOMBAY STOCK EXCHANGE

NATIONAL STOCK EXCHANGE

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The National Stock Exchange (NSE) is India's leading stock exchange covering various cities and towns across the country. NSE was set up by leading institutions to provide a modern, fully automated screen-based trading system with national reach. The Exchange has brought about unparalleled transparency, speed & efficiency, safety and market integrity. It has set up facilities that serve as a model for the securities industry in terms of systems, practices and procedures. NSE has played a catalytic role in reforming the Indian securities market in terms of microstructure, market practices and trading volumes. The market today uses state-of-art information technology to provide an efficient and transparent trading, clearing and settlement mechanism, and has witnessed several innovations in products & services viz. demutualization of stock exchange governance, screen based trading, compression of settlement cycles, dematerialization and electronic transfer of securities, securities lending and borrowing, professionalization of trading members, fine-tuned risk management systems, emergence of clearing corporations to assume counterparty risks, market of debt and derivative instruments and intensive use of information technology. NSE provides exposure to investors in two types of markets, namely: Wholesale debt market 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.

BOMBAY STOCK EXCHANGE

The stock exchange Mumbai, popularly called Bombay Stock Exchange (BSE) is the leading Stock exchange of the country, which was established as far back in 1875. It is the oldest in Asia, even older than Tokyo stock exchange, which has established in 1878.
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It has a governing body consisting of elected directors (one-third retiring every year by rotational), two nominees from securities and exchange board of India (SEBI), seven public representatives and an executive director. I t is the apex body which determines the policies and regulates the sock exchange. During 2005-06, the mean daily turnover of BSE was about Rs. 10000 crore with daily trades about 15 lakh.

2.1 Profile of the Organisation

RELIGARE is a Latin word that translates as 'to bind together'. This name Religare was chosen to reflect the integrated nature of the financial services the company offers. The name is intended to unite and bring together the phenomenon of money and wealth to co-exist and serve the interest of individuals and institutions, alike. RELIGARE is a diversified financial services group with a pan-India presence and presence in multiple international locations, Religare Enterprises Limited ("REL") offers a comprehensive suite of customer-focused financial products and services targeted at retail investors, high net worth individuals and corporate and institutional clients.

VISION AND MISSION OF RELIGARE

Vision - To build Religare as a globally trusted brand in the financial services domain and present it as the Investment Gateway of India'. Mission - Providing complete financial care driven by the core values of diligence and transparency. Brand Essence - Core brand essence is Diligence and Religare is driven by ethical and dynamic processes for wealth creation. Accent Usage

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The diacritical tilde mark ( ) over the letter A in the Religare typeface indicates a palatal emphasis sound of the letter A.

Each leaf of the clover has a special meaning. It is a symbol of Hope. Trust. Care. Good Fortune. For the world, it is the symbol of Religare. The first leaf of the clover represents Hope. The aspirations to succeed. The dream of becoming. Of new possibilities. It is the beginning of every step and the foundation on which a person reaches for the stars. The second leaf of the clover represents Trust. The ability to place ones own faith in another. To have a relationship as partners in a team. To accomplish a given goal with the balance that brings satisfaction to all, not in the binding, but in the bond that is built. The third leaf of the clover represents Care. The secret ingredient that is the cement in every relationship. The truth of feeling that underlines sincerity and the triumph of diligence in every aspect. From it springs true warmth of service and the ability to adapt to evolving environments with consideration to all. The fourth and final leaf of the clover represents Good Fortune. Signifying that rare ability to meld opportunity and planning with circumstance to generate those often looked for remunerative moments of success. Hope. Trust. Care. Good Fortune .All elements perfectly combine to bind the values.

GROUP COMPANIES
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Religare Securities Limited

Equity Broking Online Investment Portal Portfolio Management Services Depository Services

Religare Commodities Limited

Commodity Broking

Religare Finvest Limited

Lending and Distribution business Proposed Custodial business

Religare Insurance Broking Limited

Life Insurance General Insurance Reinsurance

Religare Capital Markets Limited

Investment Banking SEBI Registered Merchant Banker Acquisition in UK through an international arm

Religare Arts Initiative Limited

Art Fund and other businesses of Art

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Gallery to be launched soon

Religare Realty Limited Real Estate Management Company

Religare Venture Capital Private Limited Private Equity and Investment Manager

Religare Macquarie Wealth Management Limited 50: 50 joint venture with Macquarie for wealth management business

Religare AEGON AMC 50:50 Joint Venture between REL and Aegon for Asset Management business in India

AEGON Religare Life Insurance

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Life Insurance Company, Joint Venture between REL, Aegon and BCCL for Life insurance business in India

Religare Enterprises Limited and Vistaar Entertainment Ventures Private Limited launched Indias first ever film fund - Vistaar Religare Film Fund (VRFF) for the Film/Media business

Religare Securities Limited (RSL)

A 100% subsidiary of Religare Enterprises Limited is a leading equity and securities firm in India. The company currently handles sizeable volumes traded on NSE and in the realm of online trading and investments; it currently holds a reasonable share of the market. The major activities and offerings of the company today are Equity Broking, Depository Participant Services, Portfolio Management Services, International Advisory Fund Management Services, Institutional Broking and Research Services. To broaden the gamut of services offered to its investors, the company offers an online investment portal armed with a host of revolutionary features.

RSL is a member of the National Stock Exchange of India, Bombay Stock

Exchange of India, Depository Participant with National Securities Depository Limited and Central Depository Services (I) Limited, and is a SEBI approved Portfolio Manager.

Religare has been constantly innovating in terms of product and services and

to offer such incisive services to specific user segments it has also started the NRI, FII, HNI and Corporate Servicing groups. These groups take all the portfolio investment decisions depending upon a clients risk / return parameter.

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Religare has a very credible Research and Analysis division, which not only

caters to the need of our Institutional clientele, but also gives their valuable inputs to investment dealers.

Religare Commodities Limited (RCL)

Religare is a member of NCDEX and MCX and provides platform for trading in commodities, which is an online facility also. RCL provides platform to both agro and non-agro commodity traders to derive the actual price of the commodity and also to trade and hedge actively in the growing commodity trading market in India. With this realization, Religare Commodities is coming up with its branches at mandi locations. It is a flagship effort from our team which would be helpful in facilitating trade and speculating price of commodities in future.

Religare Finvest Limited

Religare Finvest Limited (RFL), a Non Banking Finance Company (NBFC) is aggressively making a name in the financial services arena in India. In a fast paced, constantly changing dynamic business environment, RFL has delivered the most competitive products and services. RFL is primarily engaged in the business of providing finance against securities in the secondary market. It also provides finance for application in Initial Public Offers to non-retail clients in the primary market.

Religare Insurance

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Religare has been taking care of financial services for long but there was a missing link. Financial planning is incomplete without protective measure i.e. structured products to take care of event of things that may go wrong. Religare Insurance Broking Limited. As composite insurance broker, deals in both insurance and reinsurance, providing our clients risk transfer solutions on life and non-life sides.

PRODUCT AND SERVICES

2.2(i) Stock Broking
Stock Broking is related to the Secondary Market operations deal with the buying and selling of shares of companies on the Bombay & National Stock Exchanges for the clients at the best possible prices along with the recommendations from the input provided by the Equity Research Cell. Online Trading The Internet has played a decisive role in ushering a new era of Net based trading in the secondary markets. The NSE is in an advanced stage of development of Net Trading and will be launching this facility soon. The clients and sub brokers can then directly place the order for their Saudas on the Net routed through this web site and will be able to get online confirmation of their respective transactions in real time. Net Surfers can also access the latest price updates of shares on the BSE, NSE web site. Derivatives trading is an interesting new concept that will allow clients to indulge in speculation of stock prices for a future date. The Demat mode of holding and trading in shares has gained in popularity due to its various advantages, such as, no Bad Delivery of shares, negligible time taken for transfer of shares, no Stamp duty of buying of shares, increased liquidity etc.

2.2(ii) Depository Participant

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Similar to the brokers who trade on your behalf in and outside the stock exchange; a Depository Participant (DP) is your representative (agent) in the depository system providing the link between the Company and you through the Depository. Your Depository participant will maintain your securities account balances and intimate to you the status of your holding from time to time. According to SEBI guidelines, Financial Institutions like banks, custodians, stockbrokers etc. can become participants in the depository. A DP is one with whom you need to open an account to deal in electronic form. While the Depository can be compared to a Bank, DP is like a branch your bank with which you can have an account.

2.2(iii) Insurance
In this fast moving world, we want safety of our life and all other things, which are valuable to us. To protect our life and all such things, we generally go for insurance under which a fixed amount of premium is paid for an assured sum. RELIGARE also deal in insurance as a marketing agent. It has started its own insurance firm called AEGON RELIGARE. It also have tie with AVIVA.

2.2(iv) Mutual Fund

Mutual Fund investment is that investment under which the company whom operates mutual fund collects money from the general public and then invests that money in equity and debt market. Normally mutual fund investment is meant for all those investors that havent invested yet in any form of market and also prefer regular income with less risk. Mutual Funds basically are of two types i.e. Systematic Investment Plan and monthly Income Plan. Systematic Investment Plan is that type under which invest is done in the multiple of 500 and minimum invest is of Rs. 500. Under such investment plan post dated cheques are collected
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from the investor and then on the basis of the amount invested units are transferred to the investors account. The exposure of the investment under such fund is wide in the equity market.

Monthly Income Plan is that plan in which exposure of the investment is wide to the debt market . It is ideal for those who do not plan to spend time in monitoring the movement of their investments on a regular basis and are conservative in their investment style. MIPs provide additional returns in comparison to debt funds, owing to its limited equity exposure, and are exposed to lower risks in comparison to balanced funds, owing to greater debt exposure. RELIGARE deals in the mutual funds of its own company like Religare Business Leader Fund, etc as well as of other various companies like Franklin Templeton, Reliance Capital, Birla Plus, cholamandalam, etc.

2.4 S.W.O.T Analysis

Strengths
The `do-it-yourself' framework of online share trading offers retail investors the three benefits of transparency, access and efficiency. Paperwork diminishes significantly, and no more painful trips to your broker to check if everything's in order. Online trading has made it possible to universalize access to retail investors. This was earlier very difficult, as the cost of
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servicing often-outweighed transaction volumes. Online brokerage ranges between 0.05-0.20 per cent of the value of transactions for non-deliverybased trades, and between 0.25-0.95 per cent for delivery-based trades. Once major investments in online infrastructure are over and done with - and with the economies of scale coming into play - it is expected that brokerage rates would head further downwards. Access to online trading and latest financial happenings, apart from quotes and unbiased investment analyses, all consolidate into a value-added product mix in tandem with evolving markets that are freer and fairer. The Net result: An inquisitive, informed and demanding investor. Today's investor is more involved in managing his or her assets and analyzing a vast array of investment options. Technology and today's enabled investor have, in turn, driven competition, resulting in reduced costs of trading, transparency in dealings, and pricing info that is accurate and real-time. More and more investors now want to know how their trades are executed, and whether they have received the best possible price. Critical components of execution quality include the prices at which orders were executed as well as the speed of execution. The quality of execution, in turn, hinges on efficient order routing. We owe this to our investor fraternity.

Weaknesses
Every thing in the world has a flip side to it - Transaction velocity is crucial. And more often than not, connections are lousy. There's also a degree of investor scepticism about online payment and settlement mechanisms in spite of all the encryption and fire walling brought into play. Time and technology will soon assuage these concerns, which hark back to the `physical' days. The three main technology obstacles which have prevented Internet broking from taking off are:

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Lack of Internet penetration Bandwidth infrastructure Poor quality of ISP infrastructure.

Opportunities
You have some money to dabble with. Trading shares on BSE/NSE has always been your dream. When will you ever find the time? And besides, the hassle of finding a broker is not easy. This is your main opportunity. Realizing there is untapped market of investors who want to be able to execute their own trades when it suits them, brokers have taken their trading rooms to the Internet. Known as online brokers, they allow you to buy and sell shares via Internet. There are 2 types of online trading service: discount brokers and full service online broker. Discount online brokers allow you to trade via Internet at reduced rates. Some provide quality research, other dont. Full service online brokerage is linked to existing brokerages. These brokers allow their clients to place online orders with the option of talking/ chatting to brokers if advice is needed. Brokerage rates here are higher. 5Paisa.com, ICICIDirect.com, IndiaBulls.com, India. Religare.in, Geojit securities.com, HDFCsec.com, Tatatdw.com, Kotaksecurities.com are some of the online broking sites in

Threats

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On to some threat perception - Domestic funds, foreign institutional investors and operators comprise the three main market constituents. And all three include term investors as well as opportunists in their pecking order. Some, for instance, hitch their fate with what the FIIs are up to. All this spells spurting volumes. But nobody gives a damn about the resultant volatility. And some, not all, offer free investment advice over the Net to lure rookie investors with misleading information. Prices of scripts can also be influenced to the advantage of vested interests, courtesy the Net. Unlike in the US, stockbrokers out here willingly (or under the force of circumstance) assume the role of `advisors', sans the neutral, non-vested stance. So, how does all this impinge on the ordinary guy's ordinary dreams?

LITERATURE REVIEW
As the activities on a stock market tend to be specialized and not understood by common people, this chapter will give some basic definitions and review stock market history, participants, operations and importance, so as to serve as a basis for understanding how stock market can help promote investment and trade in a monetary zone. Besides, review of other studies will be done in this chapter to give various dimensions of stock market in an economy.

2.1 Definition

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Although common, the term stock market is somehow abstract for the mechanism that enables the trading of company stocks. It is also used to describe the totality of all stocks, especially within a country, for example in the phrase the stock market was up today, or in the term stock market bubble.

Stock market is different from a stock exchange, which is an entity (a corporation or mutual organization) in the business of bringing buyers and sellers of stock together. For example, the stock market in the United States includes the trading of stocks listed on the NYSE, NASDAQ and Amex and also on the OTCBB and pink sheets .

2.2 History
In 12th century France, the courratier de change was concerned with managing and regulating the debts of agricultural communities on behalf of the banks. Because these men also traded with debts, they could be called the first brokers.

In early 13th century Bruges commodity traders gathered inside the house of a man called Van der Beurse, and in 1309 they institutionalized this, Until then informal meeting and become the Brugse Beurse soon opened in Ghent and Amsterdam.

but

. The idea

quickly spread around Flanders and neighboring counties and Beurzen and

The Dutch later started joint stock companies, which let shareholders invest in business ventures and get a share of their profits or losses. In 1602, the Dutch East India Company issued the first shares on the Amsterdam stock exchange. It was the first company to issue stocks and bonds. The first stock
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exchange to trade continuously was the Amsterdam Beurs, in the early 17 th century. The Dutch pioneered short selling, option trades. Debt-equity swaps, merchant banking, unit trusts and other speculative we know them. instruments, much as

Now, there are stock markets in virtually every developed country and most developing countries, with the worlds biggest markets in the United States, UK,Germany,FranceandJapan.

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4.2 Objectives
To study the concept of Stock Exchange.

To study The Working of Stock Exchange.

Listing of Securities.

Trading on Stock Exchange.

About NSE and NIFTY.

About BSE and Sensex.

4.3 Research Methodology

Research is an art of scientific investigation. It refers to a search for knowledge.

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The Advance Learners Dictionary of Current English lays down the meaning of research as, A careful investigation or inquiry especially through search for new facts in any branch of knowledge. Research Methodology is a way to systematically solve the research problem. The research begins its formation when the problem or objective of the research is identified for which a research report is conduced. The main objective for which this report is carried out is to make an analytical study of Working of Sock Exchange. RESERCH DESIGN Research design means adopting that type technique of research which is most suited for the research and study of the problem.Forthestudy and their search of the problem proper material has to be selected and collected for the investigation. A research design is the arrangement of conditions for collection and analysis of data in a manner that aims to combine relevance to the research purpose with economy in procedure. There are various methods of research design like Exploratory Research Design, Descriptive Research Design, Diagnostic Research Design, Deign and Hypothesis Testing Research Design. In this report, Descriptive Research Design has been used.

Type of the questions:

The questions in the questionnaire asked to the visiting customers of Religare Securities Ltd, Regional office in Connaught Place, New Delhi are Straight Forward and Limited Probing.

SOURCES OF DATA : Basically two types of data are available to the researcher namely:
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1. Primary data 2. Secondary data In the present study, secondary as well as primary data has been used. I have collected Primary data from stockbrokers and clients with the help of questionnaire and Secondary data from the different books and magazines on stock exchange and websites of stock exchange.

Sample selection and size The sample size undertaken by me for this particular project report is 100 respondents.

The various methods of data collection are enumerated as follows: 1. Questionnaire method 2. Observation Method 3. Survey Method 4. Experimentation Method

e)Sample Duration The survey was undertaken from the 27stJune, 2011 to 05August, 2011 i.e. for two months.

Ques.1. Occupation of people Investing in stock market. Ans. a) Business _ b) Service _ c) Students _ d) Housewife _
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e) Retired _

f) Others _

Observation: We can observed from the above diagram that people working in service
sector and business sector have more investment in stock market as compared to students, retired and housewife.

Ques.2. Age of the people. Ans. a) Below 25 _ b) 25-35 _ c) 35-45 _ d) Above 45 _

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Observation: We can observed that people of middle age group i.e. 25-35 year like more to
invest there money in stock market in comparison to old age people and youngsters. Ques.3. Through which broker company do you invest your money? Ans. a) Religare _ e) SMC _ b) Unicon _ f) Others _ c) India Bulls _ d) Kotak _

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Observation: We can see that people prefer broker company like Religare,
most in comparison to others like Indian Bulls, Unicon, India Infoline etc.

Kotak, SMC

Ques.4. How did you came in contact with stock market? Ans. a) Friends _ b) Relatives _ c) Newspapers _ d) Through Company _

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Observation: We can observed that most of the people came in contact with stock market
through there friends and through the broker company itself.

Ques.5. How much is your invested money? Ans. 10L_ a) 5K-50K _ b) 50K-2L _ c) 2L-10L d) More than

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Observation: We can observed that investment done by most of the people in stock market
comes under the range of 5K-50K and 50K-2L. Ques.6. On which basis you trade? Ans. a) Cash: b) Future _ i) Intraday _ ii) Delivery _ iii) Both _

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Observation: It can be seen that most of the people like to trade on both intraday and
delivery basis but people prefer most is intraday than any other.

Ques.7. Which is the most favoured market investment from your point of view? (MUTUAL FUND) Ans. a) Equity _ b) Debt _ c) Money Mkt. _ d) Balanced _

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Observation: From the above diagram we can observe that the most favoured market for
investment of mutual fund is equity market in comparison to debt, money market and balanced. Ques.8. What is your level of awareness in regard to mutual funds? Ans. a) Aware _ b) Unaware _

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Ques.9. What is your trading preference? Ans. a) Online _ b) Offline _

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Observation: There is not much difference b/w online and offline but most people prefer
online

Ques.10. If you prefer online trading then the reason for it? Ans. a) Privacy _ b) Time saving _ c) Convenience _ d) All _

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Observation: From the above diagram we can observe that online trading gives all the
three benefits i.e privacy, time saving and convenience that is why they prefer online trading. Ques.11. On whom advice / tips you are trading? Ans. a) Broker _ e) Others _ b) Friends _ c) Relatives _ d) Analyist _

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Observation: We can se that people works on the advice of their broker and analyist.

FINDINGS
The stock exchange the important part of country capital market. It is the central place where industrial securities are bought and sold under codes of rule and regulation for consideration through member as broker. The recent implementation made by SEBI leads to great impact on the stock market.

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Customer Common Findings while contacting:

Generally people whom I have contacted they were from different domains like Business, students. Proprietors, High Net worth Income Group (HNIs) and

Their responses may not be proper because of their Busyness in Dealing Room.

This data is called Primary Data, which is considered very genuine but is this case it misrepresents the Reality and Credibility.

Some people, its felt that they gave fake response, with impression that this questionnaire is from Religare Securities internal.

Some people did not take it serious because this was not important to them as they are busy for trading at dealing Room.

Every data interpretation and statistics cannot be think worthy from their results because this study is for only two months altogether.

RECOMMENDATIONS & SUGGESTIONS The main recommendation from the study is as follow: The regional stock Exchange have been out of race because of the technological development of NSE and BSE, so the Government should initiate and they could be development for commodity exchange which has a bright future in India ahead.

There should be a complete online system, which enables the investor to participate in, and the public should be making aware of the system.
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 Prevent exploitation of investor by the market malpractices by introducing formal market making arrangement in best possible manner.

To attract more investor, the companies should introduce more service center and online share trading because investor are not satisfied till the they do not meet the dealing physically along with stock Broker/investor.

There should be flexibility on margin money so that people can trade more.

The online share trading companies also should provide more facilities like hypothecation and mortgage.

Introduce uniform settlement period in all the stock exchange and all share in order to certify the market on national level.

BIBLIOGRAPHY

WEBSITES:

www.religaresecurities.com www.religare.in http://business.mapsofindia.com/investment-industry/indian-derivatives-market.html http://religareonline.com www.religaresecurities.com http://deadpresident.blogspot.com www.nseindia.in

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www.bseindia.in www.religarecommodities.com http://www.religaresecurities.com en.wikipedia.org/wiki/capital market

MAGZINES: 4Ps Marketing and Research Forbes

BOOKS: Beri G.C,Third Edition,pg no.69-70,Tata Mcgraw Hill-2006 Gupta S.L ,pg no.54-55,fifth edition,2003 Malhotra Naresh forth Edition,pg no.34-35,pearson education-2007 Kotler Phillip,!2th Edition,pg no. 118-119, Prentice hall of India-2007

ANNEXURES
QUESTIONNAIRE

Name: Occupation: a)Business e) Retired Age : a) Below 25 Gender: a)Male b)Service f) Other b) 25-35 b)Female
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c)Students

d)Housewife

c) 35-45

d) Above 45

Ques.1. Occupation of people Investing in stock market. Ans. a) Business _ e) Retired _ Ques.2. Age of the people. Ans. a) Below 25 _ b) 25-35 _ c) 35-45 _ d) Above 45 _ b) Service _ f) Others _ c) Students _ d) Housewife _

Ques.3. Through which broker company do you invest your money? Ans. a) Religare _ e) SMC _ b) Unicon _ f) Others _ c) India Bulls _ d) Kotak _

Ques.4. How did you came in contact with stock market? Ans. a) Friends _ b) Relatives _ c) Newspapers _ d) Through Company _

Ques.5. How much is your invested money? Ans. 10L_ Ques.6. On which basis you trade? Ans. a) Cash: b) Future _ Ques.7. Which is the most favoured market investment from your point of view? (MUTUAL FUND) Ans. a) Equity _ b) Debt _ c) Money Mkt. _ d) Balanced _
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a) 5K-50K _

b) 50K-2L _

c) 2L-10L

d)

More

than

i) Intraday _

ii) Delivery _

iii) Both _

Ques.8. What is your level of awareness in regard to mutual funds? Ans. a) Aware _ b) Unaware _

Ques.9. What is your trading preference? Ans. a) Online _ b) Offline _

Ques.10. If you prefer online trading them the reason for it? Ans. a) Privacy _ b) Time saving _ c) Convenience _ d) All _

Ques.11. On whom advice / tips you are trading? Ans. a) Broker _ b) Friends _ c) Relatives _ d) Analyist _

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