Summer training project report...........1234 saurabh

Page |1 PART-1 EXECUTIVE SUMMARY:The present repot is prepared for the partial of M.B.A and as a part of curriculum. The survey isan attempt to determine and ―INDIAN BROKING INDUSTRY ANALYSIS WITH RESPECTTO NIRMAL BANG SECURITIES.‖ To pursue research area are Lucknow was chosen wherethe survey conducted through personnel interview.The data collection is an analyzed and some practical tools were applied to get inferences fromthe survey. The results are printed in the graphs and diagrams.The research report has two sections in its first section company and industry profile is given,where as second Research Methodology is given which includes samples design, analysis onsample and presentation is in the form of diagram and charts.Finally some suggestions with respect to the survey for the future improvement is given toimprove the survey because their competitors have also taken up the surveys.At the end of the report limitations, SWOT analysis, conclusion of the research and Appendixwhich includes questionnaire and the list of the city where the Sriram insight share brokers Ltdare running. Last there is Bibliography, FAQ, and Glossary that has the technical terms of thereport.

Page |2 COMPANY PROFILE INTRODUCTION:Nirmal Bang Group is one of the largest retail broking houses in India, providing the investorsstate of art services in capital markets in the country. The Group has memberships of BombayExchange Limited, National Stock of India Limited, Multi Commodity Exchange of IndiaLimited, National Commodity and Derivatives Exchange Limited and is also a depositoryparticipant of NSDL and CDS (I) L, the depositories of the country.Nirmal Bang Securities Pvt Ltd. is the stock-Broking arm of the Rs. 7,500 crore (approx) NirmalBang. With over 450 branches, 8000 employees (approx), 28 lakh investors, Nirmal Bang, withevolved into a premier financial supermarket providing a host of services including stock-broking, distribution of investment products, properly, property development, industrialinvestment, risk management, insurance products and consumer finance.Founded in 1986 by Shri Nirmal Bang, the Nirmal Bang Group is recognized as one ofthe largest retail broking houses in India, providing an array of financial products andservices.Our retail and institutional clients have access to products such as equities, derivatives,commodities, currency derivatives, mutual funds, IPOs, insurance, depository services andPMS.Nirmal Bang Securities Private Limited, a retail broking house, provides an online share tradingplatform to customers to trade on equities, derivatives, commodities, currency derivatives,insurance, depository services, and subscription to initial public offerings and mutual funds inIndia. The company offers daily and company reports, stock ideas, and sector updates. It also

Page |3provides franchising opportunities to individual to use its infrastructure by being its channelpartnersNIRMAL BANG consultant:As the flagship company of the NIRMAL BANG Group, NIRMAL BANG Private Limited hasalways remained at the helm of organizational affairs, pioneering business policies, work ethicand channels of progress. NIRMAL BANG believes that they were best positioned to ventureinto that activity as a Depository Participant. They were one of the early entrants registered asDepository Participant with NSDL (National Securities Depository Limited), the first Depositoryin the country and then with CDSL (Central Depository Services Limited). Today, It service over1Lac customer accounts in this business spread across over 350 cities/towns in India and areranked amongst the largest Depository Participants in the country. With a growing secondarymarket presence. It has transferred this business to NIRMAL BANG SECURITIES PRIVATELIMITED (NBSPL), their associate and a member of NSE, BSE, and MCX & NCDEX.Throughout our history, we have fostered one overriding purpose — to provide each clientwith personal service and quality work. By adhering to this principle, we have grown tobecome a successful land well-respected of highly qualified professionals. The Group isheaded by Mr. Dilip Bang and Mr. Kishore Bang who bring forward industry expertise,insight and most importantly, create an environment of unmatched commitment to clients.We are registered members of the Bombay Stock Exchange Limited (BSE), NationalStock Exchange of India Limited (NSE), Multi Commodity Exchange of India Limited(MCX), National Commodity & Derivatives Exchange Limited (NCDEX), National MultiCommodity Exchange of India Limited (NMCE) and MCX Stock Exchange Limited and arealso depository participants of NSDL and CDSL.

Page |4Vision:―TO CREATE VALUABLE RELATIONSHIPS AND PROVIDE THE BEST FINANCIALSERVICES MOST PROFESSIONAL.‖Mission:―To work together with integrity and make customer feel valued.‖Core value:―RESPECT OUR COLLEAGAUES AND THE BUSINESS ITSELF.NIRMAL BANG --- Early Days:The birth of NIRMAL BANG was on a modest scale in 1986. It began with the vision andenterprise of a small group of practicing Chartered Accountants who founded the flagshipcompany. NIRMAL BANG Securities Private Limited. It started with consulting and financialaccounting automation, and carved inroads. Since then, They have utilized their experienceand superlative expertise to go from strength to strength…to better their services, to providenew ones, to innovate, diversify and in the process, evolved NIRMAL BANG as one ofIndia‘s premier integrated financial service enterprise.Thus over the last 20 years NIRMAL BANG has traveled the success route, towards building areputation as an integrated financial services provider, offering a wide spectrum of services. Andthey have made this journey by taking the route of quality service, path breaking innovations inservice, versatility in service and finally totality in service.Their highly qualified manpower, cutting-edge technology, comprehensive infrastructure andtotal customer-focus has secured for them the position of an emerging financial services giant

Page |5enjoying the confidence and support of an enviable clientele across diverse fields in the financialworld. Their values and vision of attaining total competence in their servicing has served as thebuilding block for creating a great financial enterprise, which stands solid on their fortresses offinancial strength - their various companies.With the experience of years of holistic financial servicing behind them and years of completeexpertise in the industry to look forward to, they have now emerged as a premier integratedfinancial services provider. And today, they can look with pride at the fruits of their mastery andexperience–comprehensive financial services that are competently segregated to service andmanage a diverse range of customer requirements.Business Focus:The focus of the businesses the Customer service, Customer education, Customer support,Customer relations and last but not the least Customer acquisition. Trade execution transparency,timely settlements, risk monitoring and superior service shall have topmost priority, in the bestinterests of all concerned. HISTORY:

Page |6Founded in 1986 by Shri Nirmal Bang, the Nirmal Bang Group is recognized as one ofthe largest retail broking houses in India, providing an array of financial products andservices.Our retail and institutional clients have access to products such as equities, derivatives,commodities, currency derivatives, mutual funds, IPOs, insurance, depository services andPMS.Throughout our history, we have fostered one overriding purpose — to provide each clientwith personal service and quality work. By adhering to this principle, we have grown tobecome a successful and well-respected of highly qualified professionals. The Group isheaded by Mr. Dilip Bang and Mr. Kishore Bang who bring forward industry expertise,insight and most importantly, create an environment of unmatched commitment to client.We are registered members of the Bombay Stock Exchange Limited (BSE), NationalStock Exchange of India Limited (NSE), Multi Commodity Exchange of India Limited(MCX), National Commodity & Derivatives Exchange Limited (NCDEX), National MultiCommodity Exchange of India Limited (NMCE) and MCX Stock Exchange Limited and arealso depository participants of NSDL and CDSL.Historian Fernando Braudel suggested that in Cairo in the 11th century, Muslim andJewish merchant and already set up every form of trade association and had knowledgeof many methods of financial dealings, disproving the belief that these were originallyinvented later by Italians.In 12th century France the courratiers de changes were concerned with managing andregulation the debts of agricultural communities and behalf of the bank. Because thesemen also trade with debts, they could be called the first brokers.

Page |7A common misbelieve is that in late 13th century Bruges commodity traders gatheredinside the house of a man called Van der Beurze, and in 1309 they became the ―BrugesBeurse‖ institutionalizing what had been.Until then, an informal meeting, but actually, the family Van der Beurze had a building inAntwerp where those gathering occurred; the Van der Beurze had Antwerp, as most of themerchants of that period.As their primary place for trading. The idea quickly spread around Flanders and neighboringcountries and ―Beurzen‖ soon opened in Ghent and Amsterdam.In the middle of the 13th century, Venetian market began to trade in government securities. In1351 the Venetian government outlawed spreading rumors intended to lower the price ofgovernment securities during the 14th century.This was only possible because these were independent city states not ruled by a duke but acouncil of influential citizens. The Dutch later started joint stock companies, which letshareholders invest in business venures and get a share of their profits or losses.In 1602, the Dutch East India Company issued the first share on the Amsterdam stock exchange.It was the first company to issue stock and bonds.The Amsterdam stock Exchange (Ro Amsterdam Beurs) is also said to have been the first stockexchange to introduction continuous trade in the early 17th century.The Dutch ―pioneered short selling, option trading, debt-equity swaps, and merchant banking.Units trust and other speculative instrument, much as we know them‖ (Murray Sayle,‖JapanGoes Dutch‖, London Review of books XXIII.7, April 5, 2001).There are now stock markets in virtually every developed and most developing economy, withthe world‘s biggest market being in the United stated, UK, Japan, China, Canada, Germany andFrance.

Page |8 BOARD OF DIRECTORS OF NIRMAL BANG:NAME POSITIONMr. Dilip M. Bang DirectorMr. Kishor M. Bang DirectorMr.Rakesh Bhandari Chartered Accountant

Page |9Mr. Deepak Agarval Chartered AccountantMr.Suvinay Sharma Chartered AccountantMr.Naresh Samdani Chartered AccountantMr. Deepak Patel Chartered AccountantMr. Sunil Jain Chartered AccountantMr.Anup Agarval Chartered AccountantMr.Brijmohan Bohra Chartered AccountantMiss. Monika Bafna Chartered AccountantMr.Brijmohan Bohra Company Secretaria PRODUCT AND SERVICES:PRODUCTS: Mutual fund schemes Portfolio Management System Shares – online and offline Bonds

P a g e | 10 Fixed Deposits Commodities CurrencySERVICES: Equities, and Derivatives trading on the National Stock Exchange of India Ltd. (NSE), and Bombay Stock Exchange Ltd. (BSE), Commodities trading on National Commodity and Derivatives Exchange India (NCDEX) and Multi Commodity Exchange of India Ltd. (MCX), Depository services, Online trading services, IPO Services, Dial-n-Trade Portfolio management services, Fundamental and Technical Research services, In addition to this they also provide advisory services and distributions for mutual funds. Daily research reports and market review (High Noon & Eagle Eye) Pre-market Report Daily trading calls based on Technical Analysis

P a g e | 11 Personalized Advice Live Market Information WIDE OPTION WHILE TRADING AT NIRMAL BANG:A product for every need:Nirmal Bang is the most comprehensive website, which allows you to invest in shares, mutualfunds, derivatives (Future and Option) and other financial products. Simply put, we offer youproducts for every investment need of yours.Trading in shares:Nirmal Bang offers you various options while trading in shares.Cash trading:This is a delivery based system, which is generally done with the information of taking deliveryof shares or monies.Margin Trading:You can also do an intra-settlement trading up to 3 to 4 times your available funds, where inyou take long buy/short sell position in stocks with in the intention of squaring off the positionwithin the same day settlement cycle.In margin trading, you take buy/sell position in stocks(s) with the intention of acquiring off theposition within the same settlement cycle. If, during the course of the settlement cycle, he pricemoves in your favor (rises in case you have a buy position or falls in case you have a sellposition), you make profit. In case you have the option to take/give delivery of buy/sell positionrespectively if you have sufficient cash/securities to do so.Normally to buy shares, you have to place (ensure availability of limit) 100% of the ordervalue, while to sell shares, you need to have shares in your Demat account. However, margins

P a g e | 12are blocked only to safeguard any adverse price movement. At present, you have to place33.33% of the order value as margin. With margin trading, you can leverage on your tradinglimit by taking buy/sell positions much more than what you could have taken in cash segment.However, the risk profile of your transaction goes up.Margin PLUS Trading:Through Margin PLUS you can do an intra-settlement trading up to 10 times your availablefunds, where in you take long buy/sell position in stock with the intention of squaring off theposition within the same day‘s settlement cycle. Margin PLUS will give a much higher leveragein your limits.Margin PLUS is an order placement feature where you can take a position at market price andalso place a cover order for the position specifying the SLTP and the limit price. This willminimize the loss cover at the time of taking the position itself. There by it gives a clear view ofmaximum downside involved in a particular position at a particular price, Nirmal Bang won‘tlevy a normal margin ranging from 21% to 50%. It would block he maximum loss whichcustomer can suffer.Spot Trading:This facility can be used only for selling you is demat stocks which already exist in you‘re demataccount. When you are looking at an immediate liquidity option, ‗cash on spot‘ may work thebest for you, on selling shares through ―cash on spot‖, money is certified to your bank a/c thesame evening & not on the exchange payout date.BTST:

P a g e | 13Buy today sell tomorrow (BTST) is a facility that allows you sell shares even on 1 st and 2nd dayafter the buying order date, without you having to Waite for the receipt of shares into your demataccount.Call N Trade:Call N Trade allow you call on a local number in your city & trade on the telephone through ourcustomer services Executive. Trading in NSE/BSE: through Nirmal Bang you can trade on NSEand BSE.Market order:This is an order to buy sell securities at the best price obtainable in the market at the time it ismatched by the exchange. Therefore, change of its getting executed are better. In case of marketorder for NSE, all market order placed which are not executive fully; it becomes a limit order forthe balance quantity at the last traded price.Market Order in BSE: Explanation:Market order can be placed only during market hours (i.e., when the Exchanges is open fortrading).You could trade by placing market orders during market hours that allows you to trade at the bestobtainable price in the market at the time of execution of the order.Limit Order:Limit Order is an order to buy or sell securities in which you specify the maximum price per unitin case of a buy order and the minimum price per unit in case of sell order. The actual transactioncan be at a price more favorable than the price specified.

P a g e | 14Allow you to place a buy/sell order at a price defined by you. The execution can happen at aprice more favorable than the price, which is defined by you, limit orders can be placed by youduring holidays & non market hours too.Online confirmation of Order and trade:You get online confirmation of orders and trades- the status of any order is updated on real-timebasis in the Order Book. As soon as you place your order they are validated by the system andsent to the exchange for execution. The entire process is fully automation and there are nomanual interventions.GTC, GTD and IOC Order:A Good Till cancelled (GTC) order remains in the system until the trading members cancels it.However, the system cancels this order if it is not trade within a number of days parameterizedby the Exchanges. A Good Till Days/Date (GTD) order allows the user to specify the number ofdays/date till which the order should stay in the system if not executed. The maximum number ofdays for which the GTC/GTD order can remain in the system is notified by the exchange fromtime to time after which the day/date on which the order is placed and inclusive of holidays. Animmediate or cancel (IOC) order allows the user to buy or sell a security as soon as the order isreleased into the system, falling which the order is cancelled from the system. Partial match ispossible for the order and the unmatched portion of the order is cancelled immediately.Disclose Quantity (DQ) Order:Normally, the order quantity is disclosed in full to the market. An order with a disclosed quantity(DQ) condition/attribute allows the trading members to disclose only a part of the order quantityto the market. For example, an order of 1000 with a disclosed quantity condition of 200 willmean that 200 is displaced to the market at a time. After this traded, another 200 is automatically

P a g e | 15released soon till the full order is executed. DQ (Disclosed Quantity) should not be less that 10%of the order quantity and at the same time should not be greater than or equal to the orderquantity.Stop Loss Order:A stop loss order allows the client to place an order which gets activated only when the marketprice of the relevant securities reached or crosses a threshold price specified by the investors inthe form of ‗stock loss trigger price‘. When a stop loss trigger price (SLTP) is specified in a limitorder, the order becomes one which is conditional on the market price of the stock crossing thespecified SLTP. The order remains passive (i.e. not eligible for execution) till the condition issatisfied. Once the last traded price of the stock reached or surpasses the SLTP, the orderbecomes activated (i.e. eligible for execution by being taken up in the matching process of theexchange) and then on behave like a normal limit order. It is used as a tool to limit the maximumloss on a position.Stop Loss by Order:‗A‘ short sell reliance shares at Rs. 325 in experience that the price will fall. However, in theevent the price rises above his buy price ‗A‘ would like to limit sell order specifying a stock losstrigger price Rs. 305 and a limit price of Rs. 300. The stop loss trigger prices price has to bebetween the limit prices an trade price at the time of placing the stop loss order. Once the lasttrade price touches or crosses Rs. 305, the orders get converted into a limit sell order at RS. 300.Trade in derivatives:Future market:

P a g e | 16Through Nirmal Bang you can now trade in index and stock futures on the NSE in future trading,you take buy/sell position in index or stock (S) contract having a longer contract period of upto 3month.Trading in FUTURE is simple if, during the course of the contract life, the price moves in favor(i.e. rises in case you have a by position or sell in case you have a sell position), you make aperfect. Presently only selected stock, which meet the certain liquidity and volume, have beenenabled for future trading.Calculate index and now your margin are tools to help you in calculating your marginrequirement and also the index & stock price movement.Option market:An option is a contract, which gives buyer the right to buy or sell shares at a specific prices, on abefore a specific date. For this, the buyer has to pay to the seller some money, which is calledpremium. There is now obligation on the buyer to complete the transaction if the price is notfavorable to him.To take the buy/sell position on index/stock option, you have to place certain % of order value asmargin. With option trading, you can leverage on your trading limit buy taken buy/sell positionmuch more that what you could have taken in cash segment.The buyer of a call option has the right but not the obligation to purchase the underlying asset atthe specified strike price buy paying a premium whereas the seller of the call has the obligationof selling the underlying asset at the specified strike price.The buyer of a put option as the right but not the obligation to sell the underlying asset at thespecified strike price paying a premium whereas the seller of the put has the obligation of buyingthe underlying the asset at the specified price. Buy paying lesser amount of premium, you cancreate position order option and take advantage of more trading opportunities.

P a g e | 17Systematic investment plans (SIP):SIP allows you to invest a certain some of money over a period of time periodically. Just fill ininvestment amount, the period of investment and the frequency of investing and submit. We willdo the rest for you automatically investing periodically for you.Systematic withdrawal plan:This allows you to withdraw or certain some money over up period of time periodically.Transfer-in: we can convert to existing mutual funds into electronic more through a transfer-inrequest.IPOS and BONDS Online:You can also invest in initial public offers (IPO‘s) and bonds online without going through thehassles of filling any application form/paperwork.Get –in-depth analysis for new IPO‘s issue (initial public offering) which are about to hit themarket and analysis on these. IPO calendar, recent IPO listing, prospectus/offer document, andIPO analysis are few of the features, which helps you keep, keep on talk of the IPO markets. DEMAT SERVICES OF NIRMAL BANG:Company offeringNirmal Bang is a registered member (Depository participant) of CDSL.In this system, physical security holding are converted into electronic (or in other words,dematerialized) holdings.Why NIRAML BANG Demat Account? Demat A/C free open. Demat access through internet and phone. Portfolio valuation on the account statements.

P a g e | 18 Online execution of transactions at branches. Special rates for stock market intermediaries and sub brokers. Transaction update from back-office four times a day.WHY PEP0PLE GOES TO NIRMAL BNAG FOR SHARE TRADING:Client Focus:Client relationship from the core of our business. We value each client, no matter what size, as along-term relationship. And we seek to provide unmatched services to each client and place himas a partner at the center of everything we do.From the very beginning of the relationship, we work closely with every client to identify hisfinancial goals and risk tolerance levels and leverage our strength of the product offering,research and financial strength to help achieve his goals. In the process, we become anprofessional partners, creating opportunity, adding value and transform vision into reality.Diverse services offering:In addition to traditional broking services, we are also equipped to handle commodity tradingfacility as well as currency derivatives and have access to a wide range of financial services likeIPOs, mutual funds and insurance.Timely services:In an increasingly competitive environment, clients today require personalized solution andgreater flexibility and responsiveness than ever before. Our professionals are always ‗on call‘.

P a g e | 19We provide them services throughout the year and not just at the end of the year. We believesuch service is essentials for delivering solution and constructive relationship.Able team:We have developed a strong and enduring team by recruiting from leading graduate andpostgraduate universities and promoting from within. Our team work together to providesuperior results to our client. At the same time, each of our clients is assigned a specific teammember who ‗owner‘ the relationship, providing continuity, responsiveness and a point of easyaccess to the firm.Culture:We strive to maintain standards at all times and lay emphasis on honesty, integrity andconfidentiality. We speak and act to ensure transparency at all levels and in everything we do.Financial strength:The strength of our balance sheet is such that it gives greater confidence to all our retail andinstitutional clients in detail with us. The financial strength of the group helps in future buildingthe network and infrastructure to cater to the larger market.Infrastructure:We believe or best infrastructure gives a significant advantage allowing us to provide efficient,transparent and qualitative services. Our technology supports everything from executive tradesand managing our investors of stocks to communicating up-to-the-second information to ourclients and monitoring for compliance.Client interface:

P a g e | 20We have trading terminal (both direct and indirect), online monitoring, control terminal(administration terminals) and back office support terminal (settlement terminal) across alllocation and centers.We have India‘s best single screen Multi Exchanges Trading Software platform. Our entirecenters across the country are connected through our own network, leased ISDN lines and LANnetwork, MPLS and internet. The high-end IBM serves with sophisticated security features that we use caters to tradingpoints across the country. This also gives u rte advantage of scalability in terms of location andsize of our planned operations. We provide telephonic and chat support for technical andfunctional issues of branches, franchises and all our clients. Our websites www.nirmalbang.comis comprehensive and provides online feeds, net trading and provides online feed, net tradingportfolio tracking tool. Investors also have access to a wide range of financial news, informationand various research reports facilitating quick decision-making. Our online trading portal at www.nirmalbang.com is equipped with facilities like all segmentbroadcasts, multi-features graphs, online payment gateways and automatic password mailerutility for better security. It user-friendly navigation allows easy viewing of trading accounts,depository accounts and research reports, which are linked to the trading platform. The website also has a provision for creating portfolios and monitoring them on a regular basis.Our ‗wealth trackers‘ module helps investors in getting ready updates n their investment so thatthey can know the changing trends of the markets and the impact of the same on their portfolio.Back office:For back office operations, we use the lidha Didha system of Apex Soft cell Pvt. Ltd. This is oneof the top most back office software in the industry. It has the capacity to process over one lakhtraders in a five minute frame.

P a g e | 21Our operation teams has an easy-to-navigate client login system, which is used to generateactivity reports, short-terms and long-term tax reports, holding and portfolio valuation reports aswell as trading to delivery activity reports.We also have the requisite infrastructure needed to handles STP, upload and download anddownload information to or from exchanges, bank and depositories, support units to ensuredelivery notes, bills and ledgers of trading accounts and cash management services for efficientand effective fund management within the group.Internal control:Compliance and internal control play a major role in determining business strategies as well asday-to-day operation of the group. A well-equipped risk management department ensures thatthe delinquency rates are minimal, while efficient risk management software provides onlineMTM margin data to branches and franchisees. Our efficient back-up system and software havebeen developed specially for branches and channel partners with a capacity to handle numeroustransactions. Our online position monitoring system ensures better risk management andsurveillance from our head office as well as branches and franchises. Our people from themcornerstone of the business and their expertise and motivation delivery of exceptional solutionand services to all our clients.Experienced professional:Our teams of professional consist of individual with significant experience in securities trading,market structure, trading technology and portfolio management. They have a strong experiencein trade execution and understanding of order flow dynamics. This combined with technicalanalysis of market momentum, help our clients to determine the price at which they buy and /orsell.

P a g e | 22We believe, we are the first choice for our clients because we among the very best at tradeexecutive solution and assets management services. At Nirmal bang, each and every professionalis focused on turning the initial trade or investment into a collaborative, person-to-personrelationship that keeps delivering true added value.Research Expertise:Our research team is headed by two senior research analysts who have more than 15 years ofexperience in this field.Our team of experienced fundamental research and technical analysts provide reports onindustries, sectors, companies and individual stocks. Our research reports are backed by in-depthresearch and analysis of emerging as well as current market trends. Besides, our researchanalysts also appear on leading business news channel where they share their insights on themarket.Nirmal Bang Group‘s business strives the largest number of common people. Consider these:Equity* /commodity/ currency*/mutual fund/IPO/PMS/insurance/DP products.Management philosophy:Nirmal Bang Group‘s business ventures are highly successful due to our Managementphilosophy. Features of this include total empowerment of its employee, decentralized decision-making process and freedom of action. Most of all, the Group views every employee as apotential partner in business. Group Companies has also been instrumental in creatinginnumerable indirect jobs in the communities they serve.Human Resources :Human resources are the key to any services sectors industry. We have a strong and vibrantworkforce in every field or our activity, be it research, system, accounts, marketing or

P a g e | 23networking. With the manpower strength of over 1100 employees, the Company is managed by ahighly motivated, qualified & talented team of professional qualified CA‘s, MBA,s, Engineers,etc with proven track records.Technology used in Nirmal Bang:Stock-broking being a process intensive activity, issues such as speed, accuracy, round-the-clocksystem availability and system securities are of paramount importance and technology forms thebackbones of the business.This is why Nirmal Bang is technology driven. We boast of state-of-the-art technology and an in-house team of highly competent software and networking engineers who constantly reviewsystem and procedures to ensure operational efficiency.All our branches are connected through Wide Area Network (WAN) and are served by acentralized back office processing system, which enables clients to obtain up to date informationonline at the click of a buttonCustomer Focus:Despite a rapidly expanding client base and a dizzying increase in transaction volumes, eachclient at Nirmal Bang is special. We specialize in building long term relationship with ourcustomers by providing them with the four things they desire most, viz., speed,, convenience,reliability and personalized services. Our continuous strive to provide best services to our clients,results in receipt of not a single Arbitration Award against the company since its inception.

P a g e | 24 ONLINE SHARE TRADING AT NIRMAL BANGOnline trading means trading/investing in equities, derivatives, commodities etc through theInternet. It enables the investor to electronically connect (through Internet) to buy or sell stocks,derivatives etc with the other investors. In online trading, one can access a stockbrokers websitethrough an Internet-enabled PC and can place orders.Online trading started in February 2000 when a couple of brokers started offering an onlinetrading platform for their customers.Highlights Streaming quotes Self-execution and instant confirmation Complete control over their trading decisions Can access accounts Online

P a g e | 25 Convenience of trade Wide access to historical charts and past data BENEFIT OF ONLINE TRADING I. Freedom from paperwork:-Integrated trading, bank and de-mat account with digital contracts removers all paperwork. II. Instant credit and transfer:-instant transfer of funds from bank account of the choice to Nirmal Bang trading account.III. Trade anywhere:-enjoy the ease of trading from any part of the world in a completely secure environment.IV. Dial n Trade:-call toll free number to place orders through telebrokers. V. Timey advice:-make informed decisions with expert advice, investment calls and live market commentary.

P a g e | 26 VI. Real-time portfolio tracking:-benefit from real-time information for investment and current portfolio value. VII. After-hour orders:-place order after market hours, which get executed as soon as the markets opens. Advantages:- Live Streaming Quotes Access all Trading Calls Advanced Charting features Create your own technical rules for trading A Single Trading Screen for all segments OFFLINE SHARE TRADING AT NIRMAL BANG In offline trading the investor places orders with the stockbroker either verbally (personally or telephonically) or in a written form (fax). This may be because he is not comfortable in accessing the Internet. Highlights: Trading over the phone No access to live market watch Absence of online Fund transfer

P a g e | 27Merits of offline trading Low brokerage Less margin Flexibility in credit period Customized adviceDemerits of offline trading Problems in getting in touch with the broker Limited clientele Problem of attention from the broker due to load Reliance on the broker‘s information Customer has to believe what the broker says Broker Might not give the best price Reconciliation of account and cash settlements

P a g e | 28  Paperwork  Geographical Restrictio SWOT ANALYSIS OF NIRMAL BANG:Strengths: Company having young management team which consist of very talented and knowledge. Professional from different fields Nirmal Bang is a well capitalized group with net worth of 3500 crores. Company is unaffected in this global recession which shows company‘s never say die. Spirits. It means company is armed with proper resources to fight any adverse situation. Company‘s research team provides tremendous research calls to their clients with high. Success records and generates level of satisfaction level of satisfied to client.Weakness: Investors are not completely aware of Nirmal Bang, so the brand value of the company not yet created. The market share of the company in commodity and equity market in terms of turnover is not significant.Opportunities: The growth of capital market is very high. Investors are now ready to invest their money in this market because the returns is much higher compare to other place for investment, so they are ready to bear factors associated with it. It means volume will increase year by year in this sector. As Nirmal Bang having its presence in 36 location of the country, so company has good opportunity to extend its branches all over the country. Company has not come yet with

P a g e | 29 its own IPO; this is a good chance for the company to be a public limited company which will help company to get money created brand awareness in this market.Threats: Company has a face a tough competition from major market leaders, so it will be a difficult task for Nirmal Bang to sustain itself in this cut throat competitions. Recently financial a huge loss, so investors now investing their money at much safer place instead of this market. STRATEGY: The main strategies used in training were as follow.DATA CALLINGIn data calling we were provided data of mobile numbers and our job was to generateappointments. After that we were required to convert that appointment into closure. Apart fromgiven data we also brought latest business directory. We called to different business people andtried to generate appointments.CALLED CALLINGCalled calling means to go at different corporate houses and to meet different People and to gettheir visiting card by it we get lead and our immediate task was to call them & to fixappointment.REFERENCE

P a g e | 30Another important strategy was to use our reference means our family, friends, relatives etc. Inmarketing or selling we can never neglect references & they always play a major role.STALL ACTIVITY Stall activity means to make stall at public place. Then our job was to give them a newspaperwith brochures and to take their name and contact number. So it was another process ofgenerating lead. After that our job was to follow STOCK MARKETA stock market is a public market for the trading of company stock and derivatives at an agreedprice these are securities listed on a stock as well as those only traded privately.The since of world stock market was estimated at about $36.6 trillions US at the beginning ofOctober 2008. The total world derivatives market has been estimated at about $791 trillionfaceoff nominal value.11 times the size of the entire world economy. The value of the derivatives market, because it isstated in terms of national values, cannot be directly compared to a stock or a fixed incomesecurity, which traditionally refers to an actual value.Moreover, the vast majority PF derivatives ‗cancels‘ each other out (i.e., a derivatives ‗bet‘ on anevent occurring is offset by a comparable derivatives ‗bet‘ on event not occurring)

P a g e | 31Many such relatively illiquid securities are valued as market to model, rather than an actualmarket price. The stock are listed and traded on stock exchanges which are entities of ancorporation of mutual organization specialized in the business of bringing buyers and sellers ofthe organization to a listing of stock and securities together.The stock market in the united states in the united states includes the trading of all securitieslisted on the NYSE Euro next, the NASDAQ, the Amex, as well as on the many regionalexchanges, e.g. OTCBB and Pink sheets. European examples of stock exchanges included theLondon Stock Exchange, the Deutsche Borse. TWO MAJOR STOCK MARKETS  BSE(BOMBAY STOCT EXCHANGE) ▪ NSE(NATIONAL STOCK EXCHANGE)

P a g e | 32 BOMBAY STOCK EXCHANGESThis stock exchanges, Mumbai, popularity known as ―BSE‖ was established in 1875 as ―Thenative share and stock brokers associations‖, as a voluntary non-profit making association.It hasan evolved over the years into its status as the premiere stock exchanges in the country. It may benoted that the stock exchanges the oldest one in Asia, even older than the Tokyo StockExchanges, which was founded in 1878.The exchanges, while providing an efficient and transparent market for trading in securities,upholds the interests of the investors and ensures redressed of their grievances, whether againstthe companies or its own members brokers.It also strives to educate and enlighten the investors by making available necessary informativeinputs and conducting investor‘s education programmers. A governing board comprises ofelected directors, 2SEBI nominees, 7 public representatives and an executive director is the apexbody, which decides the policies and regulates the affairs of the exchanges.The executive director as the chief executive officer is responsible for the day todayadministration of the exchanges. The average daily turnover of the exchange during the year2000-01 (April-March) was Rs 3984.19 crores and average numbers of daily trades 5.69 LakhsHowever the averages daily turnover of the exchanges during the year 2001-2002 has declined toRs. 1224.10 crores and number of average daily trades 5.69 Lakhs. The average daily turnover of

P a g e | 33the exchanges during the year 2001-2003 has declined and number of average daily trades duringthe period is also decreased.The Ban on all deferral products like BLESS AND ALBM in the Indian capital markets by SEBIwith effect from July 2, 2001, abolition of account period settlements, introduction ofcompulsory rolling settlements in all scripts trades on the exchanges. With effect from dec31,2001 etc. have adversely impacted the liquidity and consequently there is a considerable declinein the daily turnover at the exchanges. The average daily turnover of the exchanges presentscenario is 110363 (Laces) and number of average daily trades 1057(laces).The BSE switched from the open outcry system to the screen based system in 1995. Itaccelerated its computerization programme in response to the thereat from NSE.Jobbers play an important role on the BSE. A jobber is a broker who trades on his own accountand hence offers a two-way quote. The bid price reflects the price at which the jobber is willingto sell.Investors have to transact via a broker. The broker feeds his buy/sell quotes in his terminal,which is linked, to the main server at the BSE, because of this NSE has adopted a quote drivensystem and an order driven system.Shares listed on the BSE are classified into two groups, viz. Specified and cash, also referred toas A and B groups. The A group comprises equity shares of such companies, which have a largevolume of business in the secondary market. Presently, about 150 shares have been classified asA group shares the rest belong to B group. NATIONAL STOCK EXCHANGES:The NSE was incorporated is now 1992 with an equity capital of Rs 25 crores. The internationalsecurities consultancy (ISC) of Hong Kong has helped in setting up NSE.

P a g e | 34ISE has prepared the details business plans and installation of hardware and software system.The promotion for NSE were financial institutions, insurances companies, banks and SEBIcapital markets Ltd, infrastructure leasing and financial services Ltd and stock holdingcorporation Ltd.It has been set up to strengthen the move towards professionalization of the capital market aswell as provide nation wide securities trading facilities to investors. NSE is not an exchange inthe traditional sense where broker own and manage the exchanges.A two tier administrative set up involving a company board and a governing aboard of theexchanges is envisaged. NSE is a national market for shares PSU bonds, debentures andgovernment securities since infrastructure and trading facilities are provided.Inaugurated in 1994, the National Stock Exchange seeks for:-1. Establish a notion-wide trading facility for equities, debt, and hybrids.2. Facilitate equals access to investors across the country.3. Impact fairness, efficiency, and transparency to securities.4. Shorten settlement cycle.5. Meet international securities market standards.The NSE, besides operating the traditional market for equities, convertible debentures, non-convertible debentures etc., also operate a wholesale debt market, is a separate segment of theNSE as distinct from the capital market segment.The NSE has adopted fully automated screen based trading system, which allows tradingmembers to trade from their offices through a communication network. Besides there isflexibility with regards to price, time and volume conditions. Features of National Stock Exchange:- Nation-wide Access

P a g e | 35The NSE provides nation-wide trading facilities and equal access to investors all over thecountry. High quality services to members are maintained through efficient, transparent and fairtrading systems and procedures.Automation-Screen Based TradingThe NSE market is a fully automated screen based trading environment. There is no trading flooras is prevalent in the traditional stock exchanges, nor do the dealers use the telephone to arrangemoney market deals as was the practice. Rather the market will operate with all marketparticipants stationed at their offices and making use of computer terminals, to enter orders, toreceive the current market status, the traders executed and other market related information.Anonymity of the Trading Member s Identity The identity of the trading member placing theorder is not disclosed in the NSE computer trading system. By enabling the trading members andparticipants to hide their identity, it allows placing large orders into the system by the bigplayers, without fear of large orders influencing the price of the market.Complete Transparency The system provides complete transparency of trading operations.Investors can know whether their orders have been placed into the system, the rate at which theirdeal has taken place the counter party and the time at which the trade was executed. The tradingsystem also provides complete market information online through various inquiry facilities. Thesystem at any point of times gives the member complete information on the total order depth fora security, the best buys and sells available in the market the quantity traded in that security etc.All these information are updated online, enabling the member to make better decisions. All thekey information is updated on a real time basis.The response time is very quick. As a result it is possible for the investors to know the actualposition of the market before placing the orders. Investors can also know the fate of the ordersalmost as soon as they are placed with trading members.

P a g e | 36The trading system is top on the line and user friendly. Some of its new features include acorporate hierarchy which gives the trading members an opportunity to set up a network ofbranches and exercise control on their orders. Flexibility in trading. The trading system providesenormous flexibility to trading members. When entering an order, a trading member can placevarious conditions in terms of price, time or size. Benefits from NSE:- To InvestorsThe investor is assured of the best price in the market. Price and brokerage are separately shownon contract notes. Date and time of trade are indicated. The system will be better monitored andregulated ensuring a fair deal to investors. Safety of securities is enhanced in a depository andthere is no problem of bad delivery, loss, theft or forgery. To Trading Members They canprovide efficient service to their clients.Their back office load is reduced considerably as the system generates details of tradeundertaken. They can benefit from high growth in trading volumes which typically takes placewhen on automated trading system is introduced.They can trade from their respective offices and can make use of full back office support fortrading.There is no need to occupy office premises near a stock exchange unlike what was previouslyrequired this can lead to reduced establishment costs.They can install a computer network of their own to receive their own client orders, which theycan interface with the exchange, leading to a large increase in business.Large growth opportunities also emerge on the NSE, as Foreign Financial institutions prefer theautomated and regulated market.

P a g e | 37MEMBERS OF THE STOCK EXCHANGE:The securities contract regulation act 1956 has provided uniform regulation for the admission ofmembers in the stock exchanges. The qualifications for becoming a member of a recognized stockexchange are given below:  The minimum age prescribed for the members is 21 years.  He should be an Indian citizen.  He should be neither a bankrupt nor compound with the creditors.  He should not be convicted for fraud or dishonesty.  He should not be engaged in any other business connected with a company.  He should not be a defaulter of any other stock exchange.  The minimum required education is a pass in 12th standard examination. Taxation of Indian Resident:The below mentioned FAQs are restricted to tax implication of the resident investors only.Tax on transactions Of Buy and sell securities: Yes, you are liable to play tax on his transaction: on the difference between the price at whichyou sell and the price at which you acquired it. You can also claim deduction for expensesincurred these securities along with cost of buying these securities. Further if these securities areheld or along term before selling them, your cost of acquisition can be increased by theindexations, which reduce your capital gains, indexation benefits, is not available on debentureand bonds. In case these securities are held as stock-in-trade i.e. if you are in the business ofbuying and selling securities. The profit and loss from purchase and sell of securities will betaxed under the head ―profit of gains of business or profession‖.

P a g e | 38The nature of income under which transaction in securities will be taxed: Profit and loss from purchase and sales of securities will be taxed under the head of incomefrom ―capital gains‖, provided such securities are held as investment by you. In case thesesecurities a new held as stock-in-trade. If you are in the business of buying and selling securitiesunder the head ―profit or gains of business or profession‖.Capital gain/loss:Capital gain/loss means any profit or loss arising from transfer of a capital asset affected in theprevious year.Capital Assets:Capital asset means property of any kind held by an assesses, whether or not connected with hisbusiness or profession, but does not include 1:stock-in-trade, 2: personal effect such as jewelers,furniture, and motor car held for personal use. 3: 61/2% Gold Bonds. 1980. 4: 7% Gold Bonds.5: National Defiance Gold Bonds 1999. 6. Gold deposit Bond under the gold deposit scheme,1999 notified by the central government.Transfer of a capital asset:Transfer includes sale, exchanges or relinquishment of the asset of the extinguishment on anyright there in or compulsory acquisition thereof under any low. In a case where as asset isconverted by the owner or treated by him, is also treated as transfer. However, the followingspecific transaction are not regarded as transfer e.g. (a) any distribution of capital assets on totalor partial partition of an HUF (a) any transfer of a capital under a gift or will or an irrevocabletrust expect share, debenture or warrants allotted to employee under approved EFOP scheme,

P a g e | 39(b) Issue of share by resulting of amalgamated company in lieu of shares held in the demerged oramalgamating company (providing in case of amalgamation, Amalgamation Company in Indiancompany)(c) any transfer by way of conversion of bonds or debentures of a company into shares ordebentures of that company in case of (a) and (b) above, if the resulting owner sells the capitalasst subsequently, the cost of acquisition shall be deemed to be the cost at which the capital assetwas acquire by the previous owner. In case of demerger, it shall be the portion of the cost whichbears to the total cost the same proportion as the net-book value of the assets transferred in thedemerged bears to the net worth of the demerged company immediately before demerged. Thecost of acquisition of the original shares would stand reduced correspondingly.Short term Asset:Capital is divided as long term and short term with reference to the period of holding of the assetby you. The period of holding computed from the date acquisition to the date immediatelypreceding its sale. If the shares, unit os specific mutual fund u/s 10(23D) or any other listedsecurities are held by you for less than 12 months then such shares/ units or listed securitieswould be treated as short term assets. In all other cases, the asset is required to hold for 36 monthso as to quality for long term capital gain.Long Term Asset:If the shares, unit of specified mutual fund u/s 10(23D) or any other listed security are held byyou for more then 12 month then such share/units or listed security would be treated as long termasset.Example:You purchase 1000 shares of ACC on 10.6.2005 for Rs 1, 10,000/-

P a g e | 40You were allotted 1000 shares as bonus on 11.8.2005You sold these shares on 12.8.2006 for Rs 1, 30,000/-Calculation of long term capital gain would be as follows:Amount in RsSale consideration 1, 30,000Cost of 1000 shares purchased on 10.6.2000 110000*406/389 (indexation benefits) 1, 14,807Cost of one thousand bonus shares nilLong term capital 15, 193 MARKET PARTICIPANTS:A few decades ago, worldwide, buyers and sellers were individual‘s investors, such as wealthybusinessman, both long family histories (and emotional ties) to particular corporations.Overtime, market have become more ―institutionalized‖ buyers and sellers are larger institutions(e.g. Pension funds, insurance companies , mutual funds, index funds, exchange traded funds,hedge funds investors groups, banks and various other financial institutions).The rise of the institutional investors has brought with t some improvement in market operations.This, the government was responsible for ―fixed‖(and exorbitant) fees being markedly reduced

P a g e | 41for the ‗small‘ investors, but only after the large institutions had managed to break the brokers‘solid fronts on fees. (They then went to ‗negotiated‘ fees, but only for large institutions.However, corporate governance (at least in the west) has been very much adversely affected byrise of (largely ‗absentee‘) institutional ‗owners‘ NAME OF THE STOCK EXCHANGES IN INDIA:At present there are 23 stock exchanges recognized under the securities Contracts (regulation),Act, 1956. Those are:  Ahmadabad Stock Exchange Association Ltd.  Bangalore Stock Exchange  Bhubaneswar Stock Exchange Association  �Calcutta Stock Exchange  Cochin Stock Exchange Ltd.  Coimbatore Stock Exchange  Delhi Stock Exchange Association  Guwahati Stock Exchange Ltd  Hyderabad Stock Exchange Ltd.  Jaipur Stock Exchange Ltd  Kanara Stock Exchange Ltd  Ludhiana Stock Exchange Association Ltd  Madras Stock Exchange  Madhya Pradesh Stock Exchange Ltd.  Magadh Stock Exchange Limited  Meerut Stock Exchange Ltd.  Mumbai Stock Exchange

P a g e | 42  National Stock Exchange of India  OTC Exchange of India  Pune Stock Exchange Ltd.  Saurashtra Kutch Stock Exchange Ltd.  Uttar Pradesh Stock Exchange Association  Vadodara Stock Exchange Ltd. ROLE OF STOCK EXCHANGES IN THE MARKET/ORGANIZATION:-Stock exchanges have multiple roles in the economy, this may include the following:1. Raising capital for businessesThe Stock Exchange provide companies with the facility to raise capital for expansion throughSelling shares to the investing public.2. Mobilizing savings for investmentWhen people draw their savings and invest in shares, it leads to a more rational allocation ofResources because funds, which could have been consumed, or kept in idle deposits with banks,are mobilized and redirected to promote business activity with benefits for several economicsectors such as agriculture, commerce and industry, resulting in stronger economic growth andhigher productivity levels and firms.3. Facilitating company growthCompanies view acquisitions as an opportunity to expand product lines, increase distributionChannels, hedge against volatility, increase its market share, or acquire other necessary businessassets. A takeover bid or a merger agreement through the stock market is one of the simplest andmost common ways for a company to grow by acquisition or fusion.

P a g e | 434. Redistribution of wealthStock exchanges do not exist to redistribute wealth. However, both casual and professional stockinvestors, through dividends and stock price increases that may result in capital gains, will sharein the wealth of profitable businesses.5.Corporate governanceBy having a wide and varied scope of owners, companies generally tend to improve on theirmanagement standards and efficiency in order to satisfy the demands of these shareholders andthe more stringent rules for public corporations imposed by public stock exchanges and thegovernment. Consequently, it is alleged that public companies (companies that are owned byshareholders who are members of the general public and trade shares on public exchanges) tendto have better management records than privately-held companies (those companies whereshares are not publicly traded, often owned by the company founders and/or their families and18heirs, or otherwise by a small group of investors). However, some well-documented cases areknown where it is alleged that there has been considerable slippage in corporate governance onthe part of some public companies. The dot-com bubble in the early 2000s, and the subprimemortgage crisis in 2007-08, are classical examples of corporate mismanagement. Companies likePets.com (2000), Enron Corporation (2001), One.Tel (2001), Sunbeam (2001), Webvan (2001),Adelphia (2002), MCI WorldCom (2002), Parmalat (2003), American International Group(2008), Lehman Brothers (2008), and Satyam Computer Services (2009) were among the mostwidely scrutinized by the media.7. Creating investment opportunities for small investorsAs opposed to other businesses that require huge capital outlay, investing in shares is open to

P a g e | 44both the large and small stock investors because a person buys the number of shares they canafford. Therefore the Stock Exchange provides the opportunity for small investors to own sharesof the same companies as large investors.8. Government capital-raising for development projectsGovernments at various levels may decide to borrow money in order to finance infrastructureprojects such as sewage and water treatment works or housing estates by selling anothercategory of securities known as bonds. These bonds can be raised through the Stock Exchangewhereby members of the public buy them, thus loaning money to the government. The issuanceof such bonds can obviate the need to directly tax the citizens in order to finance development,although by securing such bonds with the full faith and credit of the government instead of withcollateral, the result is that the government must tax the citizens or otherwise raise additionalfunds to make any regular coupon payments and refund the principal when the bonds mature.9. Barometer of the economyAt the stock exchange, share prices rise and fall depending, largely, on market forces. Shareprices tend to rise or remain stable when companies and the economy in general show signs ofstability and growth. An economic recession, depression, or financial crisis could eventually leadto a stock market crash. Therefore the movement of share prices and in general of the stockindexes can be an indicator of the general trend in the economy. Credit rating and information Services of India Ltd. (CRISIL):-It is first credit rating agency in the country to evaluate debt obligations of the companies,depending on their ability to service these obligations and assigns rating to them expressed asnumeric and alphabetical symbols. The ratings convey the credit agency s opinion on the risk

P a g e | 45associated with a particular debt obligation. The credit rating is however not the recommendationof the credit rating agency to the investor to buy or sell the securities. INVESTMENT INFORMATION AND CREDIT RATING AGENCY OF INDIA LTD.(ICRA):-The ICRA has been set up with the primary objective of providing guidanceto the investors/ creditor in determining the credit risk associated with a debtInstrument/ credit obligation. Credit Analysis and Research LTD. (CARE):-Its main objective is of rating of all types of debt for the benefit to the investors. It is the thirdCredit Rated Agency in India. Stock Market:-The stock Market is broadly divided into two parts primary market and a secondary market. Newsecurities are issued in the primary market and outstanding securities are traded in the secondarymarket.The secondary market in India comprises about 23 stock exchanges recognized by thegovernment under Securities Contract Regulation Act.The principal exchanges are the National Stock Exchange and Bombay Stock Exchange,accounting for the bulk of the trading on the Indian Stock Exchange. Importance of Stock Market in India:The stock market is one of the most important sources for companies to raise money. Thisallows businesses to be publically traded or raised additionally capital for expansion by sellingshare of ownership of the company in a public market.

P a g e | 46The liquidity that an exchange provides affords investors the ability to quickly and easily sellsecurities. This is an attractive feature of investing in stocks, compared to other less liquidinvestment such as real estates.History has shown that the price of shares and other assets is an important part of the dynamic ofeconomies activity, and can influence or be an indicator of social mood.An economy where the stock market is on the rise is considered to be an up and comingeconomy.In fact, the stock market is often considered the primary indicators of a country‘s economicsstrength and development. Rising share prices, for instance, tend to be associated with increasedbusiness investment and vice versa.Share prices also affect the wealth of household and their consumption.Therefore, central banks tend to keep an eye on the control and behavior of the stock market and,in general, on the smooth operation of financial system functions. Financial stability is the raisond‘être of central banks.Exchanges also act as the clearinghouses for each transaction, meeting that they collect anddeliver the shares, and guarantee payment to the seller of a securities. This eliminates the risk toan individual buyers or seller that the counterparty could default on the transaction.The smooth functioning of all these activities facilities economies growth in that lower costsenterprise risks promote the production of goods and services as well as employment.In this way the financial system contribution to increased prosperity. An important aspect ofmodern markets, however, including the stock markets, is absolute discretion.For example, in the USA stock we see more unrestrained acceptance of any firm than in similarmarkets. Such as, Chinese firms with no significant value to American society to just name onesegment.

P a g e | 47This profit USA banker on Wall Street, as they reap large commissions from the placement, andthe Chinese company which yields funds to invest in china.Yet accrues no intrinsic value to the long-term stability of the American economy, rather justshort-term profits to American business man and the Chinese; although, when foreign companyhas a presence in the new market, there can be benefits to the market‘s citizensConversely, there are very few large foreign corporation listed on the Toronto Stock exchangeTSX, Canada‘s largest stock exchange. This discretion has insulated Canada to some degree toworldwide financial condition.In order for the stock markets to truly facilitate economy‘s growth via lower costs and betteremployment, great attention must be given to the foreign participants being allowed in. Relationof the stock market to the modern financial system.The financial system in most western countries has undergone a remarkable transformation. Onefeatures of this development is disintermediation. A portion of the funds involved in saving andfinancing bank lending and deposit operation.The general public‘s heightened interest in investing in the stock market, either directly orthrough mutual funds, has been an important component of this process. Statistics show that inrecent decades share have made up an increasingly large proportion of household‘s financialassets in many countries.In the 1970‘s, in Sweden, deposit account and other very liquid assets with little risk made upalmost 60 percent of households‘ financial wealth, compared to less than 20 percent in the 2000s.The major part of this adjustment in financial portfolio has directly to shares but a good deal nowtake the form of various kinds of institutional investment for groups of individuals, e.g., pensionfunds, mutual funds, hedge funds, insurance investment of premiums, etc.

P a g e | 48The trend towards form of saving with a higher risk has been accentuated by new rules for mostfunds and insurance, permitting a higher proportion of shares to bonds.Similar tendencies are to be found in other industrialized countries. In all developed economiessystem, such as the European Union, the United State, Japan and other developed nations, thetrend has been the same: saving has moved away from traditional (government insured) bankdeposits to more risky securities of one sort or another. The Stock Market, Individual Investors, and Financial Risk:Riskier long-term saving required that an individual possess the ability to manage the associatedincreased risks. Stock prices fluctuated widely, in marked contrast to the stability of (governmentinsured) bank deposits or bonds.This something that could affect not only the individual investors or households, but also theeconomy on a large scale. The following deals with some of the risks of the financial sectors ingeneral and the stock market in particular.This is certainly more important now that so many newcomers have entered the stock market, orhave acquired other ‗risky‘ investment (such as ‗investment‘ property, i.e., real estate andcollectables.)With each passing year, the noise level in the stock market rises. Television commentators,financial writers, analysis, and market strategies are all over taking each other to get investors‗attention‘.At the same time, individual investors, immersed in chat rooms and message boards, areexchanging questionable and often misleading tips.Yet, despite all this available information, investors find it increasingly difficult to profit. Stockprices skyrocket with little reasons, then plummet just as quickly.

P a g e | 49And people who have turned to investing for their children‘s education and their own retirementbecome frightened. Sometimes there appears to be no rhyme or reason to the market, only folly.This is a quote from the prefaces to a published biography about the long-terms value orientedstock investors warren Buffett. The behavior of the stock market in India:From experiences we know that investors may ‗temporarily‘ move financial prices away fromtheir long terms aggregate price ‗trend‘ (positive or up trends are referred to as bull markets:negative or down trends are referred to as bear markets.)Over-reaction may occur so that excessive optimism (euphoria) may drive prices unduly high orexcessive pessimism may drive unduly low. New theoretical an empirical arguments have sincebeen put forward against the notion that financial markets are ‗generally‘ efficient (i.e., in thesense that prices in the aggregate tends to follow a Gaussian distribution.)(But this largely theoretic academic viewpoint- knows as ‗hard‘ EMH- also predicts that little orno trading should take place, contrary to fact, since prices are already at or near equilibrium,having priced in all public knowledge.) The ‗hard‘ efficient-market hypothesis is sorely tested bysuch events as the stock market crash in 1987, when the Dow Jones index plummeted 22.6percent—the largest-ever one-day fall in the United States.This events demonstrated that share prices can fall dramatically even though, to this day, it isimpossible to fix a generally agreed upon definite cause: a thorough search failed to detect any‗reasonable‘ development that might have accounted for the crash. (But note that such events arepredicted to occur strictly by chance, although very rarely.)It seems also to be the case more generally that many price movements (beyond that which arepredicted to occur ‗randomly‘) are not occasioned by new information: a study of the fifty largest

P a g e | 50one-day share prices movements in the United States in the post-war period seems to confirmthis.However, a ‗soft‘ EMH has emerged which does not required that prices remain at or nearequilibrium, but only that market participants not be able to systematically profits from anymomentary market ‗inefficiencies‘.Various explanation for such large and apparently non-random prices movement have beenpromulgated. For instance, some research has shown that change in estimated risks, and the useof certain strategies, such as stop-loss limit and value at Risk limits, theoretically could causefinancial markets to overcorrect.But the best explanation seems to be that the distribution of stock market prices is non-Gaussian(in which case EMH, in any of its current forms, would not be strictly applicable.)Other research has shown that psychological factors may result in exaggerated (staticallyanomalous) stock prices movement (contrary to EMH which assumes such behaviors‘ cancelout‘).Psychological research has demonstrated that peoples are predisposed to ‗seeing‘ patterns, andoften will perceive a pattern in what is, in fact, just noise, (something like seeing familiar shapesin clouds or ink blots.)In the present context this means that a succession of good new items about a company may leadinvestors to overreact positively (unjustifiably driving the prices up). A period of good returnsalso boosts the investor‘s self-confidence, reducing his (psychological) risk threshold.Another phenomenon—also from psychology—that works against an objective assessment isgroup thinking. As social animal, it is now easy to stick to an opinion that differs markedly fromthat of a majority of the group.

P a g e | 51An example with which one may be familiar is the reluctance to enter a restaurant that is empty;people generally prefer to have their opinion validated by those of other in the group.In one paper the authors draw an analogy with gambling. In normal times the market behaveslike a game of roulette; the probabilities are known and largely independent of the investmentdecision of the different players.In times of market stress, however, the game becomes more like poker (herding behavior takesover). The players now must give heavy weight to the psychology of other investors and howthey are likely to react psychology.The stock market, as any other business, is quite unforgiving of amateurs. Inexperiencedinvestors rarely get the assistance and support they need.In the period running up to 1987 crash, less than 1 percent of the analysis recommendation hadbeen to sell (and even during the 2000-2002 bear market, the average did not above 5%)In the run up to 2000, the media amplified the general euphoria, with reports of rapidly risingshare prices and the notion that large sums of money could be quickly earned in the so called Inthe run up to 2000, the media amplified the general euphoria, with reports of rapidly rising shareprices and the notion that large sums of money could be quickly earned in the so called neweconomy stock market.(And later amplified the glom which descended during the 2000-2002 bear market, so that bysummer of 2002, prediction of a DOW average below 5000 were quite common).Irrational behavior:Sometimes the market seems to react irrationally to economic or financial news, even if thatnews is likely to have no real effect on the technical value of securities itself.But this may be more apparent than real, since often such has been anticipated, and a counterreaction may occurs if the news is better (or worse) than expected.

P a g e | 52Therefore, the stock market may be swayed in either by press releases, rumors euphoria andmass panic; but generally only briefly, as more experienced investors (especially the hedge fundsquickly rally to take advantage of even the slightest, momentary hysteria.Over the short-term, stock and other securities can be battered or buoyed by any number of fastmarket-changing events, making the stock market behavior difficult to predict. Emotion candrive prices up and down, people are generally not as rational as they think, and the reasons forbuying and selling are generally obscure.Behaviorists argue that investors often behave ‗irrationally‘ when making investment decisionthereby incorrectly pricing securities. This causes market inefficiencies, which, in turn, areopportunities, to make money.However, the whole notion of EMH is that these non-rational reactions to information cancel out,leaving the prices of stock determined. The Dow Jones industrial Average biggest gain in oneday was 936.42 points or 11 percent, this occurred on October 12, 2008.Leveraged strategiesStock that a traders does not actually own may be traded suing short selling; margin buying maybe used to purchase stock with borrowed funds; or, derivatives may be used to control largeblocks of stock for a much smaller of amount of money than would be required by outrightpurchases or sale.Short selling In short selling, the traders borrow stock (usually from his brokerage which holds it‘sclient‘s shares or its own share on account to lend to short sellers) then sells it on the market,hoping for the price to all.

P a g e | 53 The trader eventually buys back the stock, making money if the price fell in the meantimeor losing money if it rose; exiting a short position by buying back the stock is called ―covering ashort position‖. This strategy may also be used by unscrupulous traders to artificially lower the price of astock. Hence most markets either prevent short selling or place restriction on when and how ashort sale can occur. The practice of naked shorting is illegal in most (but not all) stock markets.Margin buying:In margin buying, trader borrows money (at interest)to buy a stock and hopes for it to rise. Mostindustrialized countries have regulation that requires that if the borrowing is based on collateralfrom other stock the trader owns outright, it can be a maximum of a certain percentage of thoseother stocks‘ value.In the United State, the margin requirements have been 50% for many years (that is, if you wantto make a $100 investment, you need to put up$500, and there is often a maintenance marginbelow the $500).A margin call is made if the total value of the investor‘s account cannot support the loss of thetrade.(Upon a decline in the value of the margined securities additional funds may be requires tomaintain the account‘s equity, and with or wit out the margined securities or any others withinthe account may be sold by the brokers to protect its loan position. This investors is responsiblefor any shortfall following such forced sale).Regulation of margin requirement (by the Federal Reserve) was implemented after the crash of1929. Before that, speculators typically only needed to put up a little as 10% (or even less) of

P a g e | 54the total investment represented by the stocks purchased. Other rules may include theprohibition of free-riding: putting in an order to buy stocks without paying initially (there isnormally a three-day grace period for delivery of the stock.)But then selling them (before the three-days are up) and using part of the proceeds to make theoriginal payment (assuming that the value of the stocks has not declined in the interim).Investment strategies:One of the many thing people always want to know about the stock market is, ―How do I knowmoney investing?‖ There are many different approaches; two basic methods are classified aseither fundamental analysis or technical analysis.Fundamental analysis refers to analyzing companies by their financial statements founds in SECFiling, business trends, general economic conditions, etc.Technical analysis studies prices action in market through the use of charts and quantitativetechniques to attempt to forecast prices trends regardless of the company‘s financial prospects.One examples of a technical strategy is the Trend following method, used by John W Henry andrisk control and diversification.Additional, many choose to invent via the index method. One holds a weight or unweightportfolio consisting of the entire stock market or some segment of the stock market (such as theS&P 500 or Wilshire 5000).The principle aim of this strategy is to maximize diversification,minimize taxes from too frequent trading and ride the general trend of the stock market (which,in the U.S, has averaged nearly 10% year, compounded annually, since World War II).Taxation:

P a g e | 55 According to much national or state legislation, large arrays of fiscal obligation are taxed for capital gains. Taxes are charged by the state over the transactions, dividends and capital gains on the stock market, in particular in the stock market. However, these fiscal obligations may vary from jurisdiction to jurisdiction because, among other reasons, it could be assumed that taxation is already incorporated into the stock prices through the different taxes companies pay to the state, or that tax free stock market operations are useful to boost economic growth. ACCOUNT OPENING KIT IN NIRMAL BANG PVT LTD: MANADATORY DOCUMENT:- PROOF FO IDENTITY (For individual /Karta / Sole proprietor / Authorized person (s) for Partnership, corporate and Trust) Photocopy of PAN card PROOF OF ADDRESS (For individual / Karta / Sole proprietor / Authorized person (s) for Partnerships, Corporate and Trust) Photocopy of any one of the following: Passport, Voter ID Card, Driving license, Bank Passbook, Rent Agreement, Ration Card, Current Telephone Bill, Current Electric Bill, Flat Maintenance Bill, and Certificate Issued by employer registered under MAPIN, Insurance Policy. BANK AND DP PROOF: Letter from client‘s banker certifying the account number and the period from which the accounts in operation as per prescribed format.

P a g e | 56 Copy of a pas book / bank statement containing name of the client Copy of current transaction statement / holding statement / certification by DP containing the name of DP and client. PROOF OF INCOME AND ASSETS: 1. Copy of the salary of the constituent for the last month 2. Income tax statement for the last 2 financial years 3. Assets liability statement 4. Copy of the values certificate in case of immovable property FOR MINORS: In additional to the abovementioned documents, the following documents would also be required for minors. I. Birth certificate of Minor. ADDITIONAL DOCUMENTS FOR NON-INDIVIUALS:1) Copy of the balance sheet for the last 2 financial years (copies of annual balance sheet to be submitted every years)2) Copy of latest share holding pattern including list of all those holding more than 5% in the share capital of the company, duly certified by the company secretary/ whole time Director/MD. (copy of updated shareholding patterns to be submitted every year)3) Copies of the memorandum and articles of association in case of a company / body corporate or partnership deed in case of a partnership firm

P a g e | 574) Copy of the Resolution of Board of Directors‘ approving participation in equity / derivatives/ debts trading and naming authorized persons for dealing in securities.5) Photographs of partners/whole time directors, individual promoters holding 5% or more, either directly or indirectly, in the shareholding of the company and of persons authorized to deal in securities.6) Net worth certified by Chartered accountant.7) Declaration on letterhead of firm as per prescribed format for sole proprietorship and partnership Firms. BASIC RISKS INVOLVED IN TRADING ON THE STOCK EXCHANGE (EQUITY AND OTHER INSTRUMENT) Of higher volatility: Volatility refers to the dynamic changes in price that securities undergo when trading activity continues on the Stock Exchanges. Generally, higher the volatility of a security/contract, greater is its price swings. There may be normally greater volatility in thinly traded securities/contracts than in active securities/contracts. As a result Of volatility, your order may only be partially executed or not executed at all. Or the price at which your order got executed may be substantially different from the last traded price or changes substantially thereafter, resulting in notional or real losses. Risk of lower liquidity: Liquidity refers to the ability of market participants to buy and or sell securities/ contracts expeditiously at a competitive price and with minimal price difference.

P a g e | 58 Generally, it is assumed that more the number or order available in a market, greater is the liquidity. Liquidity is important because with greater liquidity, it is easier for investors to buy and/or sell securities/ contracts swiftly and with minimal price difference, and as a result, investors are more likely to pay or receive a competitive price for securities/contracts purchased or sold. There may be a risk of lower liquidity in some securities/contracts as compared to active securities/contracts. As a result, your order may only be partially executed, or may be executed with relatively greater price difference or may not be executed at all. Buying/Selling without intention of giving and or taking delivery of a securities, as part of a day trading strategy, may also result into losses, because in such a situation, stock may have to be sold/purchased at a low/high prices, compared to the executed price levels, so as not to have any obligation to delivery/receive a security. Risks of wider spreads: Spread refers to the difference in best buy prices and the best sell prices. It represents the differential between the prices of buying a securities and immediately selling it or vice versa. Lower liquidity and higher volatility may result in wider than normal spreads for loss liquid or illiquid securities/contracts. This is turn will hamper better price formation. Risk-reducing orders: Most exchanges have a facility for investors to place ―limit orders‖, ―stop loss orders‖ etc‖. The placing of such orders (e.g., ―stop loss‖ limit orders) which are intended to limit losses to certain amount may not be effective many a time because rapid movement in market conditions may make it impossible to execute such orders..

P a g e | 59 A ―market‖ order will be executed promptly, subject to available of orders on opposite side, without regard to price and that, while the customer may receive a prompt of a ―market‖ order, the execution may be at available prices of outstanding orders, which satisfy the order quantity, on price time priority. It may be understood that these prices may be significantly different from the last traded prices or the best prices in that security. A ―limit‖ order will be executed only at the time ―limit‖ price specified for the order or a better price. However, while the customer receives prices protection, there is a possibility that the order may not be executed at all. A stop loss order is generally placed ―away‖ from the current price of a stock / contract, and such order gets activated if and when stock/contract reaches, or trades through, the stop price. Sell stop order are entered ordinarily below the current price, and buy stop orders are entered ordinarily above the current price. When the stock reaches the pre-determined price, or trades through such price, the stop loss order convert to a market/limit order and is executed at the limit order. There is no assurance therefore that the limit order will be executable since a stock/contract might penetrate the pre-determined price, in which case, the risk of such order not getting executed arises, just as with a regular limit order Risk of New Announcements: Issuers make news announcements that may impact the prices of the securities/contracts. These announcements may occur during trading, and when combined with lower liquidity and higher volatility, may suddenly cause an unexpected positive or negative movement in the price of the security/contracts. Risk of Rumors:

P a g e | 60 Rumors about companies at times float in the market through word of mouth, newspapers, websites or news agencies, etc. the investors should be wary of and should desist from acting on rumors. System Risk: High volume trading will frequently occur at the market opening and before market close. Such high volume may also occur at any point in the day. These may cause delays in order execution or confirmation. During periods of volatility, on account of market participants continuously modifying their order quantity or prices or placing fresh orders, there may be delays in order execution and its confirmation. Under certain market condition, it may be difficult or impossible to liquidate a position in the market at a reasonable price or at all, when there are no outstanding order either on the buy side or the sell side, or if trading is halted in a security due to any action on account of unusual trading activity or stock hitting circuit or for any other reason. Risk of Option Holders: An option holder run the risk of losing the entire amount paid for the option in a relatively short period of time. This risk reflects the nature of an option as a wasting asset which becomes worthless when it expires. An option holder who neither sells his option in the secondary market nor exercises it prior to its expiration will necessary lose his entire investment in the option. If the price of the underlying does not change in the anticipated direction before the option expires to an extent sufficient to cover the cost of the option, the investors may lose all or a significant part of his investment in the option.

P a g e | 61 The exchange may impose exercise restrictions and have absolute authority to restrict the exercise of option at certain times in specified circumstances. INVESTOR’S RIGHTS AND OBLIGATIONS: From the trade date upto five trading days. Where trade on the websites, do not tally with the detail mentioned in the contract note, immediately get in touch with the investors grievances cell of NSE/BSE. Ensure that payment/delivery of securities against is given to the concerned members within one working day prior to the date of pay-in-announced by NSE/BSE or it‘s clearing corporation/clearing House. Payments should be made only by account payee cheque in favors of the firm/company of the trading members and a receipt or acknowledgement towards what such payment is made be obtained from the member. Delivery of securities is made to the pool account of the members rather than to the beneficiary account of the members. In case pay-out of money and /or securities is not received on the next working day after date pay-out announced by NSE/BSE or its clearing corporation/clearing House.

P a g e | 62 Please follow-up with the concerned members for its release. In case pay-put is not released as above from the members within five working days, ensure that you lodge a complaint immediately with the investors‘ Grievance cell of NSE/BSE. Every member is required to send a complete ‗statement of Accounts‘, for both funds and securities settlement to each of its constituents, at such periodicity as may be prescribed by time to time. You should report errors, if any, in the statement immediately, but not later than 30 calendar days of receipt thereof, to the members. In case the error is not rectified or there is a dispute, ensure that you refer such matter to the investors Grievance cell of NSE/BSE, without delaying. In case of a complaint against a members/registered sub-broker, you should address the complaint to the office as may be specified by NSE/BSE from time to time. In case where a member surrenders his membership, NSE/BSE gives a public notice inviting claim, if any from investors. In case of a claim, relating to ―transaction executed on the trading system‖ of NSE/BSE, ensure that you lodge a claim with NSE/BSE/NSCCL clearing House within the stipulated people and with the supporting documents. In case where a member is expelled from trading membership or declared a defaulter, NSE/BSE gives a public notice inviting claims, if any, from investors. In case of claim, relating to ―transaction executed on the trading system‖ of NSE/BSE, ensure that you lodge a claim with NSE/BSE within the stipulated period and with the supporting documents. Claims against a defaulter/expelled member found to be valid as prescribed in the relevant Rules/Bye-laws and the scheme under the Investors‘ Protection Fund (IPF) may be payable first out of the amount vested in committee for settlement of claims against Defaulters, on pro-rata basis if the amount is inadequate.

P a g e | 63 The balance amount of claims, if any, to a maximum amount of Rs.10 lakh per investors claim, per defaulter/expelled members may be payable subject to such claims being found payable under the scheme of the IPF. GENERAL: Commission and Other Charges Before you begin to trade, you should obtain a clear explanation of all commission, fees and other charges for which you will be liable. These charges will affect your net profit (if any) or increase your loss. Deposited Cash and Property You should familiarize yourself with the protections accorded to the money or other property you deposit particularly in the event of a firm insolvency or bankruptcy. The extent to which you may recover your money or property may be governed by specific legislation or local rules. In some jurisdiction, property which has been specifically identifiable as your as your own will be pro-rated in the same manner as cash for purpose of distribution in the event of a shortfall. In case of nay dispute with the member, the same shall be subject to arbitration as per the byelaws/regulation of the exchange. For right and obligation of the clients, please refer to Annexure-1 enclosed with this document. The terms ‗constituent‘ shall mean and include a client, a customer or an investor, who deals with a members for the purpose of acquiring and/or selling of securities through the mechanism provided by NSE/BSE.

P a g e | 64 The terms ‗members‘ shall mean and include a trading members, a broken or a stock broker, who has been admitted as such by NSE/BSE and who holds a registration certificates as a stock broker from SEBI. Capital Market Segment: Order Entry & Execution: The order placed by the clients over the phone or orally from the office would be entered into the trading system and after due surveillance would be transmitted to concerned Exchange instantaneously within a few seconds. But some orders at the discretion of Shriram Insight Share Brokers Ltd. (SISBL) may be subject to manual review and clearances which may cause delay in processing the order or rejection of the order. The client agrees that placing an order, including a market order does not guarantee execution of the order. It is understood by the client that with respect to market order, the order will be executed at a price which may be different from the price at which the securities is traded when their order was entered into system. The client are required to take confirmation of their order immediately or at least once a day either in person or over telephone which would be deemed to have the same effect as given in person. The order placed by the clients would be their own investment decisions and the clients will not hold SISBL or any of its employees or associates, liable for any losses incurred by them. This extends to any decisions made by the client on the basis of any information that may be made available on the website of SISBL.

P a g e | 65However SISBL shall not be liable for failure of the system or for any loss, Damage or othercosts arising in way out of:a) Telecom network or system failures including failure of ancillary or associated system which forms or does not form or does not form part of trading workstation installation, or fluctuation of power, or other environmental conditions: orb) Act of god, fir, flood, war, act of violence, or any other similar occurrence: orc) Any incidental, special or consequential damages including without limitation of loss or profit.Cancellation or Modification of Orders:The execution or order cancellation or modification is not guaranteed. Cancellation of orders ispossible only if the original remains pending at the exchanges. Unless otherwise specified bySISBL, any order not executed at the end of the day shall stand cancelled.Sufficient Margin Maintenance for Placing Orders:The clients have to maintain sufficient margin before placing the order. The requirement ofmargin will be intimated by SISBL from time to time depending on the market condition, rulesframed by the concerned Exchanges or SEBI, and assessment of the client by SISBL.This information would be communicated to the client orally or over the phone or in writing anddecision of SISBL would be final in his regard. The margin would vary from 0% to 100% of theopen position of the client.Open position would mean all pending orders and transaction, both purchase and sale, of theclient which are either unpaid or undelivered, respectively.

P a g e | 66 However, the client would be responsible for all of their orders including any order which exceeds the limit available based on their available margin. The client should on a regular basis enquire about the margin requirement to ensure smooth transaction. SISBL may require the client to immediately deposit funds or collateral into their account prior to any applicable settlement date in order to assure due performance of their open contractual commitments. If the clients does not provide the additional collateral, the client hereby understands and knowledge that SISBL has the right to sell any or all the securities and other properties available with it and can cancel any or all open orders and/or closes any or all outstanding to raise the required margin. The client will be liable to bear any loss arising out of the same. Clients have to pay margin for the open position they may have at any point of time in the following manners:a. Margin in the form of money deposit (Cash Margin)b. Margin in the form of specified securities to be calculated at a specified percentage of value of the securities depending on the scrip as specified by SISBL from time to time. All deliveries against margin are to be made by transferring the share from the declared DP account of the client to the designated beneficiary account of SISBL: For NSE cash segment-1203840000009946 For NSE F&O segment-1203840000132265c. Margin in the form of FD (as specified by SISB) Payment from client against purchase of securities:

P a g e | 67Payment for purchase of securities has to be made by account payee cheque only from thedeclared bank a/c of the client only favoring ‗Shriram Insight Share Brokers Ltd‘By T+ 1st day but not later than the due date for playing of funds to the concerned exchanges andnot to nay employee or purported representatives of SISBL. The client shall not make anypayments of SISBL through any third party account or an account of any other client SISBL.It is understood by the client that date on which clear funds are available in the bank account ofSISBL would be treated as the date of having received the payment although a receipt may beissued at an earlier date for the cheque given by the client. Therefore, the clients are required togive the cheque sufficiently in advance so that the amount is credited in SISBL account beforethe due date. SISBL would present the cheques in normal clearing and would not be responsiblefor any delay due to clearing in the banking system.The client further undertakes that in case he fails to make payment of consideration to SISBL inrespect of any one or more securities purchased by him before the pay in date notified by theexchange from time to time.SISBL can sell the securities at any time on the exchanges not later than the fifth trading dayreckoned from the date of pay-in.Otherwise SISBL shall have the power to pledge the shares with scheduled Banks and/or nonbanking finance companies to realize the money and meet the Pay-in obligations to theconcerned exchanges. Redelivery from purchase of earlier settlement:If a client has purchased some securities in an settlement and has not taken delivery of thesame/the securities have remained undelivered to him/her and if he/she sells the same in the

P a g e | 68current settlement then the shares purchased in earlier settlements, the receipt of the same may beused to meet pay-in obligation for current settlement.The clients are cautioned that execution of a purchase order does not guarantee delivery of sharewhich may fail in case of short delivery from the concerned Exchanges or the selling party.In all such cases clients are required to take a clear confirmation from SISBL about the deliverystatus of earlier purchases before proceeding with the sale of securities. SISBL will not beresponsible for any losses if a short delivery takes places due to such short receipt in the earliersettlement. Auction of securities:  If the client fails to make delivery of deliverable shares as per the pay-in schedule of Exchanges then the securities will be auctioned as per the rules of the concerned exchanges or as per Inter Auction rules mentioned in point 8, wherever is applicable.  Consequently client will be responsible for any resulting losses and all associated costs including penalty as specified in point 10 a.

P a g e | 69 TERMS AND CONDITIONS: VOLUNTARY DOCUMENTS NO. 1a. In case the open position is either squared neither off nor converted to delivery by client within the stipulated time.b. In case the marks to market loss on the open position has reached the stipulated percentage of the margin or reduce the Mark to Market loss. In all other cases where the margin or securities placed by the client fails sort of the requirement or where the limit given to the client has been breached or the client has defaulted on his existing obligation. Client agrees that although the auto square off trigger point is predefined subsequent to which SISBL could exercise its discretion to carry out the square off within a reasonable period of time and the client agrees to bear the loss based on actual executed prices. Inter client auction:

P a g e | 70 In case, in any settlement, where both the purchase and sale position for any scrip are limited between two or more of our i.e. SISBL‗s clients only, such that the net position to the concerned Exchanges in that settlement and for that scrip is ―NIL‖. In such a situation if there is any short delivery then the resultant auction position will be inter client since both the legs i.e. the party delivery short and the corresponding purchaser are both SISBL‘s clients. For determining the auction price, in this situation, the highest of the following prices will be considered, the guiding principal being ―purchaser should not loose‖a) The concerned Exchanges Weighted Average price (WAP) for that particular scrip in that particular auction settlement, taken from the concerned Exchange Download.b) Highest purchase price plus 1.00% delivery brokerage, paid for by the purchaser(s) who have not been delivered the shares due to corresponding short delivery for that scrip in that particular settlement.c) In case WAP is not available, then auction day high prices and trading day high prices are compared with the highest purchaser price as mentioned in (b) above, and the highest is taken as auction price. It may be noted to the above auction price, a penalty @ 1.99% will be levied in pursuance to clause 10(a) of the terms and conditions. As started above, inter-client auction trades envisage debiting the client delivering short with the auction amount and crediting the corresponding purchaser with the equal amount, no brokerage being charged for a auction trades. Hence debit/credit notes are issued for inter-client auction trades.

P a g e | 71 Auction contracts notes will not be issued for inter-client auction trades because they are not trades in true sense of the term, but merely involves debiting and crediting the respective client accounts. Charges: BROKERAGE, COMMISSION AND FEES:1) The client agrees to pay the member brokerage, commission, fees, service tax and the other taxes and transaction expenses as they exist from time to time and as they apply to the Client‘s Account and transactions and to the services that the Members renders to the client. The client also agrees that he member may deduct and appropriate any of the aforesaid amounts from any amount payable by the members to the client.2) A schedule of the current brokerage, fees and commissions, applicable services and other taxes and other transaction expenses shall be provided by the Member on the Member‘s Web site, and the client agrees to keep himself updated in respect thereof. Derivatives Segment: Additional Terms & Conditions Governing Derivatives Segment In this segment, margin computations is done by the Exchanges through an online position monitoring and margining system called SPAN (Standard Portfolio Analysis Risk) Margin percentage may differ from stock to stock depending on the risk involved in the stock which depends upon liquidity and volatility of the respective stock besides the general market conditions. Margin percentage can be changed during the life of the contract depending on the volatility in the market. The client shall be required to pay an initial margin upfront on or before creating a position in any derivatives contract and further the client should provide additional margin money when

P a g e | 72called upon to do so as required in respect of position taken by him in this segment SISBL hasthe right to reject orders if the required margin has not been deposited.The client shall pay the daily mark to market loss for all my/our position in index and individualstock future contracts and pay the final settlement loss on expiry of the index and individualstock futures contracts/index contracts as the case may be as charged by NSCCL to SISBL by9.00a.m. Next day.The client shall pay the daily premium payable for all my/our open positions in index andindividual stock options contracts as charged by NSCCL to SISBL before execution of thecontracts.The client shall pay the interim as well as final exercise settlement value for all my/our shortposition on individual stock options contract which has been assigned against him, as chargedby NSCCL o SISBL by end of next day.SISBL is authorized to retain with them the MTM profit, daily premium receivable, interimexercise settlement value receivable on futures and options contracts and settle the same onmonthly basis or on demand by the client after deducting dues, if any.If the client have been are may become unable to meet, satisfy, discharge or fulfill anyobligation or liability or commitment or nay part thereof, then SISBL may at any time thereafterand without giving any notice to the client can buy, sell or close out any part or all of the futureand option contracts held in his account with SISBL.Any or all such incidental expenses incurred by SISBL in this regards will be reimbursed by theclient. If the clients after fulfilling his margin requirement fails to meet his/her uncrystallisedM2M loss either in part if full then the company will charge penalty at appropriate rate formeeting the uncrystallised M2M pay-in on behalf of the client to the exchange.

P a g e | 73 If the client takes position in any securities that has entered the prohibited range (for MWPL violation i.e. Market wise position limit violation) and a s a result of which any penalty is imposed on SISBL by the concerned exchange, then the same will be liable to be recovered from the client. Futures market: Futures‘ trading involves settlement of all positions. Every day the open positions are marked to market based on the closing level of the index and the individual stock price. If the index or the individual stock prices have moved against the client, he will be required to deposit the amount of loss (national) resulting from such movements within the stipulated time periods In the futures Market following settlement obligation are to be full filled. Brokerage- Any transaction entered into will attract brokerage which will be debited from the clients account at the end of the day. Profit & loss on squared off position. Profit & loss on end of day (EOD) MTM on open position Service tax on Brokerage, turnover Tax and securities Transaction Tax. All future obligations are settled by the exchange on T+1 basis Options market: The following settlement obligations are to be full filled in the options segment- Brokerage – Any transaction entered into will attract brokerage which will be debited from the clients account at the end of the day. Premium payable Or receivable

P a g e | 74 Profit on exercise Loss on assignment Service tax on Brokerage, turn over tax and securities Transaction Tax. For options contracts in case a client has a sell position, the contract may be assigned to him i.e. the underlying will have to be bought in case of PUT and sold in case of call. However since options are currently cash settled, the client would have to pay or receive the money. The assignment process in initiated and completely decided by the exchanges on a random basis. Hence it is not necessary that the assignment will take place even if the position is in- the money.Additional Conditions In Relation To Electronic Orders at Nirmal Banga) The client confirms that from time to time he would continue to read and understand the exchange provisions and the terms and conditions in relation to electronic orders to be placed through SSBL‘s Web Site.b) The client will be entitled to a User Name, password or other identification or security code (by whatever name called) which will enable him to enable him to access SISBL‘s system or services through SISBL‘s web site for availing of the services.c) The clients is aware that SISBL‘s system itself randomly generates the Initial password, encrypts and passes on the password to the client, and that SISBL is not aware of the same. The clients agree and understand to immediately change his initial password upon receipt thereof. The client is aware that subsequent passwords also are not know or available to SISBL.d) The client shall lo off from the Nirmal Bang.com services at any time the client is not accessing or using the Nirmal bang.com services and any liability incurred to the client as a consequence to the client not logging off the services shall be borne solely by the client.

P a g e | 75e) The client shall be responsible for keeping the username and password confidential and secure and shall be solely responsible for all orders entered and transactions done by any person whosoever through SISBL‘s system using the client‘s username, and passwords whether or not such persons was authorized to do so.f) If the client is unable to change his password by reasons of his having forgotten his passwords or his password or his password having been un authorized changed by some other persons or for any other reasons then the client shall immediately request SISBL in writing to discontinue his old password. SISBL‘s system shall generate a new password for the client which shall be communicated to the client.g) At no point in time shall SISBL be liable for any loss, whether national or actual, that may be suffered by the client on account of the misuse of the password and the client shall be liable and responsible for the same.h) SISBL shall not be deemed to have received an order unless and until it has actually received the order in the order-receiving module of SISBL‘s system. The client shall not be entitled to presume that any order transmitted by the client has been received by SISBL until SISBL ha confirmed receipt of such order. However, due to technical or other factors, an order which has been received by SISBL may not be immediately confirmed to the client. INTERNET TRADING AGREEMENT IN ADDITION TO THE STOCK BROKER AND CLIENT AGREEMENT, RISK DISCLOSUE DOCUMENT & TERMS AND CONDITIONS THE FURTHER CLAUSES FOR INERNET TRADING ARE AS FOLLOWS Important Keys Used for online trading at Nirmal Bang F1 - For placing order for buying the shares.

P a g e | 76 F2 For placing order for selling the shares. F3 Outstanding order. F4 Scrip update. F6 Market by 1st five buys. F7 Market by order (active log). F8 Previous trades. F9 Snap quotes. F10 Full message display. F11 Market inquiry. F12 Supplementary menu. Alt F6 Net position. Alt F7 Online Back-up. Ctrl F3 Index. THE PARTIES HERE TO AGREE AS UNDER: a) DEFINATION & INTERPRETATION OF NIRMAL BANG: In this agreement, unless repugnant to the context or meaning thereof, i. Words and expressions defined in Basic’s in our websites Nirmal Bang.com shall have the meaning assigned thereto in Basis’s andii. The principal of interpretation set out in Basic’s shall apply to his agreement. AGREEMENT TO PROVIDE AND AVAIL OF THE MEMBER’S SERVICES:

P a g e | 77 A. on and subject to the terms and conditions of this Agreement, the exchange provision, the terms of the Member‘s Web Sites and the terms of the contract/contract note to be issued by the Member‘s to the client: i. The members agrees to provide the Member‘s Services to the Client, andii. The client agrees to avail of the Member‘s Services. B. Based on the Account Application submitted by the client, the members may open a client account in the name of the client. This agreement shall become effective only upon the members opening such client Account. The client is aware and agrees that the mere execution and/or acceptance of his Agreement by the Members opening such client account. C. The client is aware of and agrees that in the course of transaction on the Exchanges the Member will be acting as an agent of the client, unless otherwise disclosed by the members to the client. D. The client hereby authorized the members to take all such steps on the client‘s behalf as may be required or advisable in the member‘s opinion for compliance with the exchanges provision or any other law or provisions. Or to complete or settle any transaction entered into through or with the members or executed by the members on behalf of the client. However, nothing herein shall oblige the members to take such steps. E. Now with standing anything stated elsewhere in this agreement, the members may at any time in its sole discretion, prohibit or restrict the client‘s access to the use of the member‘s Web Site or Services and the client‘s ability to trade, without any prior notice and without assigning any reasons what‘s ever. F. The members and the client shall be bounded by the provision of the exchange on which the concerned transaction is affected.

P a g e | 78USER NAME AND PASSWORD FOR NIRMAL BANG CLIENTS3.1 The client acknowledge that he is fully aware of and understands the risks associated withavailing of a services for routing over the internet or the telephone including the risk of misuseand unauthorized use of his username, password by a third party and the risk of a personhacking into the client‘s account on the Member‘s system and unauthorized routing orders onbehalf of the client through the system.3.2 The client accepts full responsibility for the monitoring and safeguarding of the client‘saccount and agrees that he shall be fully liable and responsible for any and all un authorized useand misuse of his password, username, and also for any and all acts done by any person throughthe member‘s system on the client‘s username in any manner whatsoever.3.3 The client is also aware that he has the option of not availing such facility/services. However,being fully aware of all risks, the client desires the convenience of such facility of transmittingorders and instructions over the internet and telephone and has therefore opted for such facilityof his own free choice and is willing and agreeable to bear all associated risks, responsible andliability.3.4 The client shall ensure that he is the only authorize user of the username, password. Themember shall be entitled to presume that any order or instructions entered or communicatedusing the client‘s username.Password is the client‘s own order or instruction that of the client‘s duly authorizedrepresentative. The client will be fully responsible and liable for, and will pay or reimburse tothe members as a consequences of access and /or use of the expenses incurred by the member‘ssystem or services by any third party using the client‘s account, member‘s system or services byany third party using the client‘s username, password.

P a g e | 79 3.5 Without prejudice to the provisions of the aforesaid clause, the client shall immediately notify the member in writing with full details if: a) He discovered or suspects unauthorized access through his username, password. b) He notices discrepancies that might be attributable to unauthorized access. c) He forgets his password. d) He discovers a security flaw in the member‘s system, or e) He does not, on the same day as the receipt or execution of an order by the member; receive a message from the members indicating that the order has been received or, executed; f) He does not receive a confirmation of an execution; or receives confirmation of an order and /or execution which he did not place; or receives inaccurate information in client‘s account balances, securities positions or transaction history. In any of the above events specified in clause. The client shall immediately change his password. However, if the client is unable to change his password by person of his having forgotten his password or his password having been unauthorized changed by some other person. Or for any other reason than the client shall immediately request the members in writing to discontinue his old password; and thereupon the members shall cause the member‘s system to discontinue the use of the client‘s old password and the member‘s system shall generate a new password for the client which shall be communicated to the client. At no profit in time shall the members be liable for any loss, whether notional or actual, that may be suffered by the client on account of the misuse of the password and the client shall be liable and responsible for the same.

P a g e | 80  The client agrees that orders, instruction and other communication given or made over the telephone may be recorded by the member. The client also agrees that such recording and the member‘s recorders of any orders, instruction and communications given or made by the client or the member by electronic mail, fax or other electronic means shall be admissible as evidence and shall be final and binding evidence of the same.  The client agrees to provide information relating to customers relating to customer user identification and such other information as may be required while placing orders on the telephone to determine the identity of the client. VOLUNATRY DOCUMENTS NO. 2 ORDERS ROUTING AN EXECUTION: The client shall transmit his order to the members only in the following manner: I.The manner (if any) as the members may permit (including through branches that the members may specify for this purpose) II. Through the internet over the member‘s website: III. Over telephone a) As a prediction for execution of a purchase order, the members may in its sole discretion: i. Required the client, at the time of order placement by the client, an available funds balance in the client‘s account with the member for the full value of the order plus any Brokerage, service tax, transaction charges, associated costs and such mark-up as the members any determine: and/orii. Require the amount of margin prescribed by the members to be available in the client‘s margin account if nay, with the members;

P a g e | 81b) As a prediction for execution of a sale order, the members may in its sole discretion:i. Require the client, at the time of order placement by the client to maintain an available stock balance in the member‘s own depository account, and also maintain funds required for margin, if any, determined by the members in the client‘s account with the members; and/or ii. Require the amount of cash margin prescribed by the members to be available in the client‘s margin account, if, any, with the members.c) The members shall be entitled to offset the purchase price of a purchase order/transaction against the proceeds of a sale transaction executed by the client through the member, and vice versa. d) Unless the members otherwise determines, all orders for purchase, sale or other dealings in securities and other instruction routed through the member‘s system via client‘s username shall be deemed to have been given by the client. e) The member shall not be deemed to have received an order unless and until it has actually received the order in the order receiving module of the member‘s system. The client shall not be entitled to presume that any order transmitted by the client has been received by the member until the member has confirmed receipt of such order. However, due to technical or other factors, an order which has been received by the members may not be immediately confirmed to the client. Such client in confirmation shall not entitle the client to presume that eh order has not been received by the members and the principle mentioned in the first sentence of this clause shall apply. f) The client shall be allowed to trade only during Trading hours. g) All order received by the member through the system may be executed in good faith and shall be valid until separately cancelled in accordance with the provisions of this agreement.

P a g e | 82a. The client agrees to ensure that all orders and instructions which the member receives from the client are absolutely clear and unambiguous; and the client agrees that if any instruction or orders or any details therefore are not absolutely clear and unambiguous, the member, its employee or authorized representative shall be entitled to interpret the same as per its/his understanding and such understanding and interpretation shall be treated as final.b. The members may from time to time in its discretion impose and vary limits on the order and trades which the client can be place and enter into through the member‘s system (including exposure limits, turnover limits, limits as to the number, value and/or kind of securities in respect of which orders can be placed, the companies in respect of whose securities orders can be placed, etc.). The members may choose not to intimate the client of the limits and any variation thereof. The client is aware and agrees that he members may need to urgently vary the limit or impose new limits or prohibit or restricts the client‘s ability to place orders or trade in securities through the members on the basis of the member‘s risk perception and other factors considered relevant by the members, and the members may not inform the client of the same. The client agrees that the members shall not be responsible of liable for the client‘s inability to place any order or enter into any transaction on account of nay such variation, imposition, restriction or prohibition.c. The members shall have the right to refuse to accept the whole or a part of any orders or instruction from the client and/or refuse to execute the whole or a part of any accepted orders or instruction without providing any reasons therefore. In particular, the members may refuse to accept or execute the whole or a part of any order or instruction:-

P a g e | 83 I. Based on the member‘s risk perception: or II. In respect of which the client requires regulatory approval, even if the Client has sought and obtained the required regulation approvals;d. The clients shall be responsible for obtained and complying with all applicable legal and regulation approval in respects of the client‘s order‘s, instructions and transactions at the default in research thereof.e. The members may in its discretion at any time allow or disallow margin trading by the client. CONFIRMATIONS: The client shall bring any errors or other discrepancy in any report, account, confirmation or contracts note of executed trades (including execution prices, scrip‘s or quantities) to the member‘s notice in writing, via electronic mail or fax. Within 24 hours from the time of receipt of the first notice. In all causes, the members shall have the right to accept or reject the client‘s objection. There may be a delay in the members receiving the reports of transaction status from the Exchanges. Accordingly, the members may forward to the client late reports in respect of such transaction that were previously unreported to him. Or were incorrectly reported to him as being expired, cancelled, or executed. The client shall not hold the members responsible for nay losses suffered by the clients on account of nay late reports/statements or nay errors in reports/statements computed by or received from the exchanges. REPRESENTED AND WARRANTIES OF THE CLIENT:

P a g e | 84All actions required to be taken to ensure compliance of all the transactions which the client mayenter into pursuant to his agreement with all applicable laws shall be completed by the clientprior to such transaction being entered into.The client shall abide by the exchange provisions and the terms of the member‘s Website inforce from time to time.Any instruction given by an authorized representative of the client to the members (or to themember‘s representative) shall be binding on the client.REPRESENTATIVE AND WARRANTIES OF THE MEMBERS:The member represents and warrants to the client that, whatever such approval is required, themember‘s system has been approved by the Exchanges.1. OTHER DATA: The client understand that the exchanges and any other suppliers of data asserts aproprietary interest in all of the market and other data it furnishes, directly, through themembers or otherwise.The client understands that the Exchanges, such suppliers and the members do not guarantee thetimeliness, sequence, accuracy or completeness of the data or nay other information, or anymessages disseminated by it.Neither the members nor the Exchanges nor such suppliers shall be liable in any way forincorrect, misleading, incomplete or out-dated data ro information and, if the client acts on thesame, he shall do so at his own risk and cost.

P a g e | 85  The client shall not furnish market information provided by the Exchange or the members to any other persons or entire for consideration or otherwise and in the event the client uses such information he shall do so at his own risk and cost.  The client is authorized to use, at the client‘s risk, materials which are made available by the member‘s services for the client‘s own need only, and the client is not authorized to resell or permit access to any such material or to make copies of any such materials for sale or supply to or use by others. The client will not delete copyright or other intellectual property rights notices from any such materials. REIMBURSEMENT: The member does not warrant that the service will be uninterrupted or error free. The member‘s service is provided without warranties of any kind, either express or implied, including, without limitation, those of uninterrupted availability, merchantability or fitness for a particular purpose. The client agrees that under no circumstances, including negligence, shall the member‘s services or system be liable for any direct, indirect, incidental, special Or consequential damages including, but not limited to lost profit, trading losses, loss of opportunity or damages that result from interruption, delay or loss of the use of the services or out of any breach of any warranty even if the members has been advised of the possibility of such damages. The client agrees to reimburse to the members any and all claims, liability, costs, and expenses (including but not limited to lawyer‘s fees and penalties or cost imposed by any Exchange0 and proceedings arising from or in relation to the clients breach of nay provision of this agreement or nay third party‘s right arising out of the services rendered by the members pursuant to this agreement or any other wrongful act on the part of the client.

P a g e | 86 Certain securities any grant the holder thereof valuable rights that may expire unless the holder takes action. The client shall be responsible for knowing the rights and terms of all securities in his accounts and the members shall not be obligations to notify the client of nay upcoming expirations or redemption dates. Or take any other action on the Client‘s behalf, except as required by law and applicable Exchanges provision. The client shall also be responsible for knowing about organizations related to securities, which the client holds including, but not limited to, stock splits. If, due to a reorganization or book keeping or data entry error, the client sells more securities than he actually owns or different securities from what he actually owns, then the members shall not be responsible for any losses the client may incur by reason thereof. The members shall not be liable for any error or delay in, or omission from, any data, information, or message on the members on the member‘s Websites; or (ii) Delayed, interrupted or improper transmission or delivery of nay data, information or message; or nay loss or damage arising from or occasioned by the above. NOTICES: Any notices or other communication to be given by any part to the other in connection with this agreement shall be in writing and shall be deemed duly served if delivered personally or sent by facsimile transmission or by prepaid registered post or by e-mail to the addressee at the address or (as the case may be), the e-mail or facsimile number (if any), of that party set opposite its name below. To the member at name of the person concerned: HEAD OFFICE:-

P a g e | 87 38-B/39, Khatau building, 2nd floor, Alkesh Dinesh Moby Marg fort, Mumbai. SMS ‗BANG‘ TO 54646 E-MAIL: free@nirmalbang.com Contact at: 022-30272323 www.nirmalbang.com To the client: (at the address, fax number or e-mail address stated in the schedule); or at such other address, facsimile number or email address as the party to be served may have notified the other in accordance with the provision of this clause. Notwithstanding anything stated above, communication relating to orders, margin, maintenance calls and other similar matters by the members to the client may be communicated orally. Do’s And Don’ts For Investors For Trading In Stock Market PLEASE Don’ts1) Don‘t deal with unregistered brokers/sub-brokers, intermediaries.2) Don‘t fall prey to promise of guaranteed returns.3) Don‘t get misled by companies showing approvals/registered from government agencies as the approval could be for certain other and not for the securities you are buying.4) Investors are advised not to indulge in any market manipulation of price of any scrip through their trading activity.5) Don‘t leave the custody of your delivery instruction slip (DIS) book in the hands of nay intermediary/broker.

P a g e | 886) Don‘t get carried away with onslaught of advertisement about the financial performance of companies in print and/or electronic media.7) Don‘t blindly follow media reports on corporate developments, as they could be misleading.8) Don‘t blindly imitate investment decisions of others who may have profited from their investment decisions.9) Don‘t share any sort of trading related password with anybody else.10) Don‘t overwrite, misspell any data or not to provide any wrong information when you fill-up your KYC.11) Don‘t meet your PAY-IN through CASH or don‘t issue any cheque in favors of any employee of Nirmal Bang security PVT Ltd. always issue cheque in favor of Nirmal Bang security PVT Ltd.12) Don‘t participate in any synchronization Trade.13) Don‘t hand over signed delivery instruction slip (DIS) or cheques or any other documents to any persons including staff of Nirmal Bang securities PVT ltd.14) Nirmal Bang securities PVT Ltd., will not held responsible for nay financial loss arising from violation of the said instruction.15) Avoid off-market transaction of securities especially to third party.16) POA is not compulsory for execution of PAY-IN.17) Don‘t forget to cheque or scrutinize your Transaction details and holding statements received by you on a regular interval. In case of any unauthorized transaction, inform your DP. PLEASE DO’S

P a g e | 891) Know your risk: it is critical to understand where you stand and where you want to be, what level and amount to investment are you comfortable with, regardless of what market experts tell you. Therefore, take some time to evaluate your risk-bearing capacity. This is a golden rule that should be applied at all times. 2) Always deal with the market intermediaries registered with the securities and Exchanges Board of India (SEBI)/stock exchanges. Know the rules regulation, byelaws and circulars issued by stock exchanges/SEBI before investing in this market. 3) Please carry out due diligence before registering as client with any intermediary. Further, investors and requested to carefully read and understand the contents stated in the risk Discloser document, Members-client agreement which from part of investors registration for dealing through brokers in the stock market. 4) Before signing please read and understand all the point of KYC‘S 5) Always update your correspondent address, bank account details. 6) Give clear and unambiguous instruction to your broker/agent/depository participants 7) You will be sole responsible for your internet password; hence do not share your login ID & password with anybody, since all the transaction will be deemed to be done by you only. 8) Always insist on duly signed contracts notes from your brokers. In case of doubt of the transactions, verify the genuineness of the same on the exchanges website: http://www.bseindia.com, http://www.nseindia.com 9) Check all the related information like trade details, electronic contract note, margin call, etc in your email ID as discloser by you in KYC.

P a g e | 9010) Always pay your margin call in Future & option segment and maintain required margin in cash segment. In case of any shortfall or inadequate margin in your account, Nirmal Bang security PVT Ltd, would have the discretion to square off the position of the client.11) Always collect money receipt from the broker after every payment.12) Always settle the through the normal banking channels with the market intermediaries.13) Settle your dues on any payment to the brokers would be from your declared bank account only.14) Investors should ensure delivery of due securities/payments of money to the broker immediately upon getting the contract note for sale/purchase and in any case, before the prescribed pay-in day.15) Be cautious about stocks,, which show a sudden spurt in price or trading activity, especially low price stocks.16) Please be informed that there are no guaranteed returns on investment in stock markets.17) You should read and understand the utility of power of attorney (POA) for meeting the pay-in before signing the same.18) Please note that DI slip is like a cheque book keeps it under safe custody.19) Any correction, overwriting, cancellation on the instruction slip made should be countered signed by you.20) Please be aware at the time of writing the ISIN, quantity, spelling of the scrip/scrip on delivery instruction slip (DIS) correctly.21) Joint holder of demat account should sign jointly on delivery instruction slip (DIS).22) Please strike out the unused blank places of multiple instructions on the delivery instruction slip (DIS) at the time of delivery DI slip to any personnel.23) Check the delivery instruction slip (DIS) numbers are pre-printed and your account number (BOID) is pre-stamped.

P a g e | 9124) To open and operate your demat account, copy of PAN card of all account holders is to be submitted to the DP along with original PAN card, for verification.25) The demat account has a nomination facility and it is advisable to appoint a nominee to facilitate you‘re your heirs in obtaining the securities in your demat account, on completion of the necessary procedures.26) In case of sale of shares, the delivery of shares has to be done prior to the pay in sate for the relevant settlement and issues DIS from your own DEMAT account.27) In order to receive all the credit coming to your demat account automatically, you can give one- time, standing instruction to your DP.28) Registered for CDSL‘S SMART (SMS Alerts related to Transactions) facility. If any unauthorized debit is noticed, the BOND should immediately in for CDSL and the Main DP in writing. An email may be sent CDSL at. complaints@cdslindia.com29) Registered for CDSL‘s internet based facility ―easl‖ to monitor your demat account yourself. Contacts your DP or visit CDSL‘s websites: www.cdslindia.com for details.30) If you have any quarries or have any confusion please contacts our helpdesk helpdesk@nrimalbang.com phone no. (0522-3060071-079) What a customer expect from the company:1. Wide range of services under one roof.2. 24 hours and ease to access.3. Personalized attention. What company offers to our customers?1. Extensive product range.2. Enhance customer through relationship managers.

P a g e | 923. Understand local market dynamic.4. Expanding geographical and online presence.5. Provide a wide array of services such as brokerage, depositary services, mutual fund and equity distribution, commodities trading and customer‘s loans.6. Offer innovation products such as power Nirmal Bang signature client account.7. Improve customer education through in-house equality research.8. Improve interface and customer experiences through research.9. Improve customer‘s interface and customer experience through technology.10. Continually invest and quality of systems.11. Improved speed and quality of services12. Enhance data mining to improve risk management processes.

P a g e | 93 COMPETITORS OF NIRMAL BANG 1. India Bulls 2. Motilal Oswal 3. Religare 4. Kotak Securities 5. ICICI Direct 6. Anand Rathi 7. India Infoline 8. Reliance Money 9. Angel Broking 10. 5 paisa.com OBJECTIVE OF THE PROJECTReports communicate information which has been compiled as a result of research andanalysis of data and of issues . Reports can cover a wide range of topics, but usuallyfocus on transmitting information with a clear purpose, to a specific audience. Goodreports are documents that are accurate, objective and complete. They should also be well-written, clearly structured and expressed in a way that holds the readers attention andmeets their expectations. The true value of the research may be assessed through a reportsince the written report may be the "only tangible product of hundreds of hours of work.

P a g e | 94 Rightly or wrongly, the quality and worth of that work are judged by the quality of the written report - its clarity, organization and content" (Blake & Bly, 1993: 119). Often reports are structured in a way that reflects the information finding process and the writing up of the findings: that is, summary of the contents, introduction or background, methods, results, discussion, conclusion and/or recommendations. The inclusion of recommendations is one reason why reports are a common form of writing in industry, as the informed recommendations are useful for decision making. To understand & analyze the marketing strategies and analyze online Trading of NIRMAL BANG. To improve the format of daily sales report (DSR) To get the Demat account opened of potential customers in favor of Nirmal Bang. Analysis of need and satisfaction of distribution of financial services. To give a brief idea about the benefits available from Mutual Funds investment and idea of types of schemes available. To discuss about the market trends of Mutual Funds investment. To study some of the mutual funds schemes and analyze them observe the funds management process of mutual funds. Explore the recent developments in the Mutual Funds in India. To give an idea about the regulations of Mutual Funds. To know the basic terminology of stock market. To forecast or predict the future trend of stock market which helps in investment. To get the knowledge of other markets such as commodity market and derivatives. To execute business for the company by selling demat accounts and mutual funds.

P a g e | 95 To study the various products of the company. To know how to open and close the calls. To learn the online terminal used for trading. To know the various policies of the company. To know how to handle various types of customers. To know various reasons for market fluctuations. To learn to manage time. To gain practical knowledge of the market. To have a practical experience of working in a reputed organization. SCOPE OF PROJECT When people talk about scope, they immediately think time and cost. Time and cost are outputs of scope. Determining scope is a different exercise. In the context of this white paper, when we talk about defining the scope, we are talking about developing a common understanding as to what is included in, or excluded from, a project. We are not talking about deciding how long it will take, or how much it will cost. That comes after the scope is defined. If we were looking for a car, we would first define the scope. For example we want a 4-cylinder front wheel drive with seating for 2 adults and 2 children, and less than 2 years old. Maybe you also want it to be a red convertible. Having defined the scope, you can calculate cost and time. How much you will have to spend and how long

P a g e | 96you will take to buy it. If you get the scope wrong, the time and cost will be wrong. Anyone who hasever done a project will have tales of how scope changes caused grief. Scope is bound to change, andthis is to be expected. As the detail becomes clearer, more complications creep in. These are notforeseeable at the start and hopefully we build in a contingency for what we cannot see. The scopechanges that usually cause problems are those where the perception of what was in and out of scopewas different between various parties. The Project Manager assumed there would only be four or fivereports, and the business assumed ten to twenty. Nobody felt it was worth talking about because theyassumed the other person thought the same way they did. Scope definitions often account for aparagraph or two in a Business Case or Project Charter. Often, they are qualitative and/or focus ongeneral statements. "We will improve service by providing an information system to respond tocustomer inquiries." Is it a real time system? Is it all screen-based? What reports can be produced?Where does the information come from? What manipulation is required for the data? Is all the datacompatible? Do you want to generate standard letters? How many letters? How customizable are theletters? Do you want to store the questions? Do you want to store the answers? Etc. etc. etc Derivatives Sebi Stock exchange Commodity market Stock market Securities Day trading Factor affecting Indian stock market Effect on Indian economy

P a g e | 97 PART-2 RESEARCH PROBLEMunclear goals and objectiveslack of alignment to project goals across stakeholdersnon-participative sponsors and stakeholders, or userspoor communication of objectives and targets across the teamunofficial scope creeppoor/ lack of measures or information on project performanceunclear responsibilities across the project (can be catastrophic on its own)lack of / poor quality planning / resource planning

P a g e | 98 poor supplier integration / management lack of commitment or team working lack of ownership (relates to many areas) RESEACRH METHODOLOGYThe research specifies the information required to address needed issues, designs the methods forcollecting information, manages and implements the data collection process analyzes andcommunicates the finding and their implications.The research methodology implemented in this research repot primarily consists of personalinterviews with those very investors in Lucknow city who invest through the stock marketcompanies in Lucknow cities.Research objectives:  To understand and analyze the market strategies of Nirmal Bang.  To understand and analyze online trading at Nirmal Bang.

P a g e | 99  To improve the format of DSR (Daily Sales Report).  To get the Demat account opened of potential customers in favor of Shriram insight. Analysis of need and specialization of distribution of financial services.  To give a brief idea about the benefits available from Mutual Funds investment.  To give an idea of the types of schemes available.  To discuss about the market trends of Mutual Funds investment.  To study some of the mutual fund schemes and analyze them observe the fund management process of mutual funds.  Explore the recent development in the mutual in India.  To give an idea about the regulation of Mutual Funds. Research Design: Descriptive Research Design. Data Collection: primary and secondary. Data Collection Instrument: questionnaire and personal interview. Sampling size: 100 Research Instrument: In this research we have used telephonic and face to face conversation for getting the result. Proposed Analysis Technique: graphs and chartsDESCRIPTIVE OF RESEARCH METHODOLOGYResearch Design: Descriptive Research Design.

P a g e | 100Descriptive research includes surveys and fact-finding enquires of different kinds. The majorpurpose of descriptive research is description of the state of affairs as it exists at present. I haveto move around the city and asked the people that whether they invests in the life insurancescompanies or not. If they invest then I asked them further questions related to my research workmention in the questionnaire.Data Collection: primary and SecondaryPrimary Data was collected with the help of interviews conducted to the general public, to thoseonly in Lucknow city who invest in stock market by the help of a share trading firm. I askedthem about their share trading firms and tried to know that whether they are satisfied with it ornot.Secondary Data was collected from the firm‘s database to know how many customers is there ina particular in life Insurance Company the Lucknow city. Since the name, addresses and contractnumber of the customers were not available in the internet, therefore an attempt was made toknow all these details from the Life Insurance itself.Data Collection Instrument: Questionnaire and personal interview.Questionnaire: questionnaire is formal set of questions prepared to collect the requiredinformation. This is one of the most effective and popular techniques used in surveys. Astructured questionnaire was constructed containing all perceptions about the different sharetraing Companies can be made quite easily. The questionnaire can also reveal that which sharetrading Companies in Lucknow city is more popular and which fir is not popular among theinvestors in the Lucknow city.

P a g e | 101 DATA INTERPRETATION AND ANALYSIS1. You are interested in share trading? Parameter Response Yes 60 No 40

P a g e | 102 70 60 50 40 yes 30 no 20 10 0 yes NoInterpretation:The data shows that most people interested in investment in share trading.2. Mode of trading would you prefer? Parameter Response Online 40 offline 60

P a g e | 103 70 60 50 40 online 30 offline 20 10 0 Online OfflineInterpretation:The data shows that mostly customers prefer offline trading.3. Type of product do you invest in? Parameter Response Commodity 30 Equity 40 Currency 20 Mutual fund 10

P a g e | 104 45 40 35 30 25 Commodity Equity 20 Currency Mutual Fund 15 10 5 0 currency Equity Commodity Mutual FundInterpretation:The data shows that mostly customers invested in equity.. 4. Which broking firm would you prefer? Parameter Response Share khan 40 Nirmal bang 30 Angel broking 15 Religare 15

P a g e | 105 45 40 35 30 25 Share Khan Nirmal Bang 20 Angel Broking 15 Religare 10 5 0 share Khan Nirmal Bnag Angel Broking ReligareInterpretation:The data shows that mostly customers prefer share khan broking firm for share trading.5. How did you come to know about the broking firm? Parameter Response News paper 10 Advertising 30 Friend 50 Internet 10

P a g e | 106 60 50 40 news paper 30 Advertising Friend Internet 20 10 0 News Paper Advertising Friend InternetInterpretation:The data shows that mostly customers know about broking firm through friends.6. Do you have a De-Mat A/C? Parameter Response Yes 60 No 40

P a g e | 107 70 60 50 40 yes 30 no 20 10 0 yes NoInterpretation:The data shows that mostly customers have an demat account.7. Have you or any of your family members ever invested in stock market? Parameter Response Yes 70 No 30

P a g e | 108 80 70 60 50 40 yes no 30 20 10 0 yes NoInterpretation:The data shows that mostly customers prefer offline trading.8. What is your age? Parameter Response 20 5 20-30 35 34-40 50 40 25

P a g e | 109 60 50 40 20 30 20-30 34-40 40 20 10 0 Age 20 Age 20-30 Age 30-40 Age 40Interpretation:The data shows that mostly customers are trade in the age between 34 to 40.9. Occupation Parameter Response Service Man 25 Business Man 65 House wife 5 Retired 10

P a g e | 110 70 60 50 40 Service man Business man House wife 30 retired 20 10 0 service man Business man House wife RetiredInterpretation:The data shows that mostly trade is done by businessman.10. Income Parameter Response 50,000- 15 1,00,000 1,00,000 - 35 5,00,000 Above- 5,00,000 50

P a g e | 111 60 50 40 50,000 to 1,00,000 30 1,00,000 to 5,00,000 Above 5,00,000 20 10 0 50,000 to 1,00,000 1,00,000 to 5,00,000 Above 5,00,000Interpretation:The data shows that mostly customers are trade whose income above 5, 00,000.11. Do you have risk management? Parameter Response Yes 70 No 30

P a g e | 112 80 70 60 50 40 yes no 30 20 10 0 yes NoInterpretation:The data shows that most brokers possess the risk management system.12. Number of client. Client base Parameter Response Delivery 60 Non-delivery 30 Commodity 10

P a g e | 113 70 60 50 40 Delivery 30 Non-delivery Commodity 20 10 0 Delivery Non-delivery commodityInterpretation:As the above data the most investors prefers to invest in delivery (same day transaction)13. Ratio between online and offline trading? Parameter Response Offline 80 Online 20

P a g e | 114 90 80 70 60 50 offline 40 online 30 20 10 0 offline onlineInterpretation:According to the above data approx 20% investors have knowledge about the online trading andthey invest through online.14. What are the daily volumes in delivery? Parameter Response Less 25% 15 40% 25 50% 35 More than 60% 10

P a g e | 115 40 35 30 25 less than 20% 20 approx 40% approx 50% 15 more than 60% 10 5 0 less than 20% approx 40% approx 50% more than 60%Interpretation:The above data shows that approx 50% investors prefers to invest in delivery15.What are the daily volumes in non-delivery? Parameter Response Less than 20% 40 Approx 40% 35 Approx 50% 25 More than 60% 30

P a g e | 116 45 40 35 30 25 less than 20% approx 40% 20 approx 50% more than 60% 15 10 5 0 less than 20% approx 40% approx 50% more than 60%Interpretation:The data shows that the more than 60% investors prefers to invest in the non delivery. Limitation of the study:The time constraint was one of the major problems.The study of limited to the different schemes available under the mutual funds selected.The study is limited to selected mutual fund schemes.The lack of information sources for the analysis part.

P a g e | 117I have gathered an information and data from secondary source like internet.Peoples do not have sufficient knowledge to distinguish between advantages and disadvantagesbetween companies own branches and franchisee.For nay primary data. I filled questioner from 30 people‘s to suggest proper expansion model forNirmal Bang in ester region. Now based on the opinion of such a sample size. It is very difficultto suggest anything for greater and diversified area.Some times peoples never read the questioner seriously; they just filled it quickly and run away,in such way it is almost impossible to get the real opinion of people. FINDING & RECOMMENDATIONDuring my project analysis I was very keen to find some keys areas which need to be taken careseriously in the future these are causing dissatisfaction among distributors.Most of distributors felt dissatisfaction with their brokers but some of the disappointing areasare-

P a g e | 118More exposure: Most of distributors want some more exposure for them clients from their sharebroking companies.Brokerage problem: Some companies have huge brokerage chares which create differences ofmarket share of different companies and also dissatisfaction among distributors.Recommendation for the concerned company: 1. Mass reach- The new and different offers should be communicated to the large value of potential inventors so that the offers can hit the target. 2. Full information- The companies should reveal all the information regarding any scheme so that investors can feel free to invest. 3. All risks should be communicated by distributors of financial services- It is very important for distributors to make the customers aware about all the risks involved and he could not blame for any loss to the company. 4. Misconceptions- There are many misconceptions in the mind of common people that Mutual funds, online share trading etc. are only for ‗big ones‘ & they can‘t enter in this field and if they will enter they will suffer losses so, by giving example of active investors various misconceptions should be removed. 5. Simple procedure-many potential investors are computer illiterate so they never try their hand free. 6. Target rural areas also- many potential investors are also trust in rural areas. They come to cities (like in Lucknow) for various works. There should some special offers to attract them in share trading.

P a g e | 1197. Employees should be trained- It is very necessary for the employees to give an effective demo to the client about the use of various services of share broking etc. Some offers for women should be introduced to get a new share of market.8. According to the data that have been collected all the people who were surveyed are aware of share market and trading.9. Survey shows that the nearly 79% people prefer the online trading rather than that of offline trading through broker.10. People like to invest more in equity rather than other investment sectors.11. The best preferred broking firm among the people is ICICI direct with 22% rather than other broking firms.12. Friends, News paper and Internet are the most preferred mode for awareness of the broking firms and share trading. LEARNING: Importance of information technology in the field of stock broking is immense. Stock broking companies run with the help of IT. The terminal through which the brokers buy and sell shares is a software that completely depends on the internet.

P a g e | 120 Buying and selling through internet is fast. As soon as the prices of the shares goes up or comes down then they can be sold or purchased instantly within seconds. Customer Relationship is very necessary for the company to retain the customers. In Nirmal bang I have learned how to maintain good relations with the customers by giving them the proper service and solving their queries regarding the share market. I have also learned how to maintain good relation with the employees and the co- trainees. In Nirmal Bang Ltd. I have learned a lot relating to the finance. Learned about various products of the Nirmal Bang Limited. Learned various aspects regarding Share Market. Learned about various products used in the share market especially Demat accounts. Learned how to use online trading terminal. Enhanced my communication and convincing skills. Learned how to take appointments. Learned how to approach the customers. Learned how to open and close the calls. Learned how to interact with people, how to convince them and guide them in trading. Learned the various policies of the company. Learned to manage time properly.

P a g e | 121  Learned the importance of the Excel sheet. I maintained all my daily records in the Excel sheet. ConclusionThrough this research we can conclude that:Importance of information technology in the field of stock broking is immense.Buying and selling of shares through the internet is so easy.

P a g e | 122As soon as prices of share s goes up and comes down then the customer can sell or purchase theshare instantly within seconds.Products and services of the Sharekhan are good from others. Especially the software ofSharekhan ―trade tiger‖ is unique from others.There are 57% people are doing trading in stock market.In it 59% people are doing trading in equity and others are in commodity, mutual fund.Mostly the people have opening the account from Sharekhan ltd and angel broking ltd.In Sharekhan the current scheme is that opening the de-mate account is free of charge and thereis no other charge on it for a year. Also the unique software of ―trade tiger‖ is allowed free ofcharge for life time.After listening the current scheme 47% people are ready to opening the account.Because of time limitation and also internet available problems, mostly people are doing off-line trading.But now in days numbers of customers are increasing for online trading.Stock market fluctuates by the external environment.Stock market is all about future prediction.Stock market is very sensitive market.It is based on ―high risk and high return.‖Comparatively stock market is less risky than the other market and generates more money for theeconomyOne who have good knowledge in stock market, may survive in the market and generatesProfits or good return whether the market is downInvestors should not invest on the basis of rumors they must observe the marketCondition or trends Indian economy and than invest If they wanna generate good return.

P a g e | 123 Bibliography:www.nirmalbang.comwww.capitalmarket.com.

P a g e | 124 www.wikipedia.org www.google.com www.yahoofinance.com www.moneycontrol.com www.yahoofinance.com www.galatime.com www.indiaseekingalpha.com www.sitebysite.com www.skicapital.net www.webindia.com www.yeahindia.com www.nseindia.com www.bseindia.com www.sebi.org www.icicidirect.com www.businessstandard.com ANNEXURE QUESTIONNAIRE:NAME: …………………………………………………………DESIGNATION: ………………………………………………

P a g e | 125AGE: ……………………………………………………………GENDER: ………….... MALE  FEMALE 1. Are you interested in share trading?a) Yes b) No 2. Which mode of trading would you prefer? a) Online b) Offline3. Which type of product do you invest in?a) Mutual fundb) Equityc) Commodityd) Currency4. If you trade in future, which broking firm would you prefer?a) Share khanb) Nirmal Bangc) Angel brokingd) Religare5. How did you come to know about the broking firm?a) Newspaperb) TV Advertisementc) Friendsd) Internet6. Do you have a De-Mat A/C?a) YES

P a g e | 126b) NO7. Have you or any of your family members ever invested in stock market?a) Yesb) No8. What is your age?a) Age less than 20b) Age between 20-30c) Age between 30-40d) Age more than 409. Occupationa) Serviceb) Businessc) Housewifed) Retired10. Incomea) 50,000 to 1,00,000b) 1,00,000 to 5,00,000c) More than 5,00,00011. Do you have risk management?a) Yesb) No12. Number of client. Client basea) Delivery

P a g e | 127b) b) non-deliveryc) c) commodity13. Ratio between online and offline trading? a) 80 b) 2014. What are the daily volumes in delivery? Less than 25% 40% 50% More than 60%15. What are the daily volumes in non-delivery? Less than 25% 40% 50% More than 60% THANKS FOR THE SUPPORT

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