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  • 1. PRESTIGE INSTITUTE OF MANAGEMENT AND RESEARCH, INDORE(M.P) SUMMER TRAINING REPORT ON ASHIKA STOCK BROKING Comparative Analysis Of Services Provided By Ashika Stock Broking ltd. And other Broking Houses In Indore, (with special reference to ashika stock broking ltd,indore)Submitted by Submitted toVinita chandravat Prof. Nidhi SharmaBBA 4th ―D‖
  • 2. ACKNOWLEDGEMENTIt gives me pleasure to present this project report, which is an outcome of the study―Comparative research analysis of the services provided by Ashika stock Broking Ltd. withother broking houses.‖.Completing a task is a never a one-man effort. It is often the result of valuablecontribution of a number of individuals in a direct or indirect manner that helps onshaping and achieving an objective.I wish to express my sincere gratitude to innumerable number of people who have beenassociated with me throughout this project. I feel blessed to have the opportunity ofexpressing my hearty gratitude to the following personalities, without the help of whom myproject could not have been hatched.Source of firstly I would like to acknowledge my sincere thanks to Mrs. Munmun Agrawal(Assit branch manager), who gave me an opportunity to carry out this project and had been aconstant inspiration.I am grateful to my faculty guide Prof. Nidhi Sharma (Prestige Institute Of Management AndResearch) for the Summer Internship Project, for their regular guidance without which myproject report would not have been completed.I am also thankful to the other staff member of Ashika Stock Broking ltd. for their continuousmotivation throughout this program, which really helped me in completing this project.I have no words to express my indebtedness for the ungrudging and unfailing co-operation ofmy parents. Finally I want to thank all the friends, colleagues for their constant co-operation,encouragement, help and support throughout the study without which this work would nothave been possible.
  • 3. Executive summary/prefaceThere is growing competition between brokerage firms in post reforms India. For investor itis always difficult to decide which brokerage firm to choose.Research was carried out to find which brokerage house people prefer and to figure out whatpeople prefer while invest in stock market.These researches suggest that people are reluctant while investing in stock and commoditymarket due to lack of knowledge.Main purpose of investment is return and liquidity, commodity market is less preferred byinvestor due to lack of awareness. The major findings of this study are that people areinterested to invest in stock market but they lack knowledge.Through these researches I came to know what are positive and strong points of ASHIKASTOCK BROKING ltd. On the basis of which swot analysis (strength, weakness,opportunities and threats) is done.
  • 4. TABLE OF CONTENTSCHAPTER 1- Introduction  Certificate of training  Acknowledgement  Executive summary/preface  Table of contentCHAPTER 2- COMPANY STUDY  Industry study  Organisation structure: company history, ownership pattern division, number of people, department workers etc.  Financial profile of company  Products & Services  Competitors  Any other relevant informationCHAPTER 3- PROJECT DETAILS  Introduction  Statement of problem  Objectives (problem definition, Research /Data collection)  Analysis, results & findings  Conclusion & Recommendations  Appendix & References
  • 5. 1) Industry studyHISTORY OF EQUITY MARKETMarket-oriented economic reforms in India began in 1991. with the removalof Administrative controls on bank credit and primary market for securities, thecapitalMarket came to occupy a larger role in shaping resource allocation in the country. This led toa heightened interest amongst policy makers in theinstitutional development of securitiesmarkets. The efforts towards empoweringthe securities markets regulator(SEBI) and the firstefforts towards attracting foreignportfolio investments began early in the reforms process.Almostimmediately after the reforms began, there was a prominent scandal on thefixedincome and equity markets, which was exposed in April 1992. This set thestage for anunusual policy intervention the establishment of a securitiesexchange, the National StockExchange (NSE), by the government.From 1996 onwards, debates about policy issues on the equity markets weredominated byquestions about the role for leveraged trading. There was a proposal to have a spot marketbased on ―rolling settlement‖ (where leverage islimited to intra-day positions only).In 2001, a major crisis broke on the equity market. It involved numerouselements: largeleveraged positions which went wrong, accusations of marketmanipulation, a payment crisisat the Calcutta exchange, fraud in the bankingsystem, ethics violations at the Bombay stockexchange.This crisis was valuable in breaking this five-year deadlock and moving on withreforms.inJune 2001,tradingin index options commenced &within a matter of weeks, liquidityimprovedsharply.Over the 1990s, the equity market became a nationwide platform with real-timecapability fortrading and settling stock transactions. However, comparableimprovements in theinfrastructure for of both exchange institutions and SEBI is highlylimited.STOCK MARKETThe term ‗the stock market‘ is a concept for the mechanism that enables thetrading ofcompany stocks, other securities, and derivatives.The stocks are listedand traded on stockexchanges which are entities (a corporation or mutualorganization) specialized in thebusiness of bringing buyers and sellers of stocksand securities together.BSE Sensex crashed from the level of 4256 to 3876 in between June and August 1997. Themajor and pronounced fall in the stock markets occurred during the period from November1997 to January 1998, with the BSESensex declining by 18 percent to reach the level of 3224 by the end of January 1998.What is meant by Interest?When we borrow money, we are expected to pay for using it – this is known asInterest.Interest is an amount charged to the borrower for the privilege of using thelender‘s money.Interest is usually calculated as a percentage of the principalbalance (the amount of moneyborrowed). The percentage rate may be fixed for thelife of the loan, or it may be variable,depending on the terms of the loan.What factors determine interest rates?When we talk of interest rates, there are different types of interest rates - rates that banksoffer to their depositors, rates that they lend to their borrowers, the rate atwhich theGovernment borrows in the Bond/Government Securities market, ratesoffered to investors in
  • 6. small savings schemes like NSC, PPF, rates at whichcompanies issue fixed deposits etc. Thefactors which govern these interest rates are mostly economy related and are commonlyreferred to as macroeconomicfactors. Some of these factors are: Demand for money Level of Government borrowings Supply of money Inflation rate The Reserve Bank of India and the Government policiesWhat are various options available for investment?One may invest in:-Physical assetsLike real estate, gold/jewellery, commodities etc.Financial assetsSuch as fixed deposits with banks, small saving instrumentswith post offices,insurance/provident/pension fund etc. or securities marketrelated instruments like shares,bonds, debentures etc.What are various Short-term financial options available for investment?Broadly speaking, savings bank account, money market/liquid funds and fixeddeposits withbanks may be considered as short-term financial investment options:Savings Bank AccountIt is often the first banking product people use, which offerslow interest (4%-5% p.a.),making them only marginally better than fixed deposits.Money Market or Liquid Fundsare a specialized form of mutual funds that invest inextremely short-term fixed incomeinstruments and thereby provide easy liquidity.Unlike most mutual funds, money market funds are primarily oriented towardsprotectingyour capital and then, aim to maximize returns.Fixed Deposits with BanksAre also referred to as term deposits and minimuminvestment period for bank FDs is 30 days.Fixed Deposits with banks are for investors with low risk appetite, and may be considered for6-12 months investmentperiod as normallyWhat are various Long-term financial options available for investment?Post Office Savings Schemes, Public Provident Fund, Company Fixed Deposits,Bonds andDebentures, Mutual Funds etc.Post Office Savings:Post Office Monthly Income Scheme is a low risk savinginstrument, which can be availedthrough any post office.Public Provident Fund:A long term savings instrument with a maturity of 15 yearsand interest payable at 8% perannum compounded annually. A PPF account can beopened through a nationalized bank atanytime during the year and is open allthrough the year for depositing money. Tax benefitscan be availed for the amountinvested and interest accrued is tax-free. A withdrawal ispermissible every year fromthe seventh financial year of the date of opening of the account
  • 7. and the amount of withdrawal will be limited to 50% of the balance at credit at the end of the 4th year immediately preceding the year in which the amount is withdrawn or at the end of thepreceding year whichever is lower the amount of loan if any. Company Fixed Deposits: These are short-term (six months) to medium-term(three to five years) borrowings by companies at a fixed rate of interest which ispayable monthly, quarterly, semi10 annually or annually. They can also becumulative fixed deposits where the entire principal along with the interest is paid atthe end of the loan period. Bonds: It is a fixed income (debt) instrument issued for a period of more than oneyear with the purpose of raising capital. The central or state government,corporations and similar institutions sell bonds. A bond is generally a promise torepay the principal along with a fixed rate of interest on a specified date, called theMaturity Date. Mutual Funds: These are funds operated by an investment company which raisesmoney from the public and invests in a group of assets (shares, debentures etc.), inaccordance with a stated set of objectives. It is a substitute for those who are unableto invest directly in equities or debt because of resource, time or knowledgeconstraints. 2) ORGANISATION STRUCTURE COMPANY HISTORY:The expedition began on the 18th of February,1994. The next year we acquired membership of OTCExchange of India as a dealer and as a merchant banker with the Securities and Exchange Board of India(SEBI). Thus began our adventures in the financial world.Within a decade, we acquired membership of the National Stock Exchange of India Limited (NSE) (2000)and got registered with the Central Depository Services (India) Limited (CDSL) (2004) as a depositoryparticipant (equity) to offer one-stop solutions to clients.Over the past seven years (2004-2010) we have introduced a plethora of services and have registered witha number of regulatory authorities to augment the facilities offered to customers.Despite a number of milestones we remain forever thirsty for success and strive endlessly towards it.Ashika groupAshika Group is a premier financial services provider, offering numerous packages and productsincluding securities trading, depository, distribution, corporate lending and investment banking under one
  • 8. roof through a dedicated & experienced team of professionals.We began operations in 1994, merely years after India became an open economy, and the story of ourgrowth has been parallel to that of the country. Over the years, we have served the specific needs of morethan 80,000 clients. Their satisfaction has been the founding stones of our success, their approval ourreward.We are known to our clients for uncompromising professionalism and impeccable business ethics. Webelieve in transparent business practises to make sure that you are always aware of the status of yourinvestments.DEPARTMENT/WORKERS-Ashika Group‘s team of 300 devoted professionals can address any of your requirements, anywhere.Equity trading, commodity trading, mutual fund distribution, IPO distribution, online trading, portfoliomanagement, merchant banking, investment advisory services, margin funding, — any financial productyou require can be provided instantly.Our pan-India network of more than 600 branches and Authorised Persons will ensure that our servicesand products reach your doorstep.We know how much you value your time. So, we use cutting-edge technology to guarantee that you don‘tlose a single moment. We also make sure that your needs, forever evolving with the growing market, isalways on our radar.With us, your growth can never be stagnant as we believe that the secret behind success is ―Growing andsharing with you‖.Our VisionTo be a globally recognized financial service provider, leveraging the best of technology, people and ideas.Our MissionTo reach our vision with integrity, honesty and fairness to all stakeholders viz. Clients, Employees,Business Associates, Regulatory Authorities and the Society.
  • 9. Our logo
  • 10. CORPORATE STRUCTURE –Founders-Pawan Jain, FCA- Chairman and Managing DirectorDaulat Jain, FCA- DirectorManagement team-B.L. bafna -Director, FinanceAmit Jain -Director, AccountsB.L. Banthia-CEO, Commodities BusinessRajendra Kanoongo -President, Merchant Banking DepartmentNiraj Sarawgi -Senior Vice President, Corporate AffairsManish jain -Vice President, Risk Management & Surveillance3)financial profile of the company-Balance sheet-Particulars Mar 2012 Mar 2011 Mar 2010 Mar 2009 Mar 2008SOURCES OF FUNDSShare Capital 80.07 80.07 80.07 80.07 77.07Share warrants & Outstandings 0.00 0.00 0.00 0.00 0.00Total Reserve 1051.99 786.52 608.27 564.03 416.40Shareholders Funds 1132.06 866.59 688.35 644.10 493.47Secured Loans 0 0 130.14 99.38 284.75Unsecured Loans 46.10 45.07 184.00 24.00 24.00Total Debts 46.10 45.07 314.14 123.39 308.75Total Liabilities 1178.16 911.66 1002.48 767.49 802.22
  • 11. APPLICATION OF FUNDS :Gross Block 1541.99 1352.82 1237.11 1197.07 939.22Less: Accumulated Depreciation 731.18 645.89 569.41 486.52 425.39Less: Impairment of Assets 34.90 0 0 0 0Net Block 775.92 706.93 667.70 710.55 513.84Lease Adjustment A/c 0 0 0 0 0Capital Work in Progress 7.22 3.41 9.85 11.80 24.17Pre-operative Expenses pending 0 0 0 0 0Assets in transit 0 0 0 0 0Investments 40.72 59.23 29.62 29.62 32.12Current Assets, Loans & AdvancesInventories 373.79 271.29 285.46 187.61 152.80Sundry Debtors 198.84 108.72 100.42 100.26 102.69Cash and Bank 134.94 80.27 145.98 22.25 191.58Other Current Assets 6.88 7.06 7.43 6.09 20.44Loans and Advances 422.03 332.29 315.20 215.17 62.58Total Current Assets 1136.48 799.63 854.49 531.37 530.09Less : Current Liabilities and ProvisionsCurrent Liabilities 396.65 386.47 366.00 314.80 218.74Provisions 319.53 187.80 100.92 111.96 3.34Total Current Liabilities 716.18 574.27 466.92 426.75 222.08Net Current Assets 420.30 225.36 387.58 104.62 308.02Miscellaneous Expenses not written off 0 0 0 0 0Deferred Tax Assets / Liabilities -66.00 -83.28 -92.26 -89.10 -75.92Total Assets 1178.16 911.66 1002.48 767.49 802.22Contingent Liabilities 370.24 217.33 174.08 165.93 89.47
  • 12. Financial ratio-Particulars Mar 2012 Mar 2011 Mar 2010 Mar 2009 Mar 2008Operational & Financial RatiosEarnings Per Share (Rs) 33.15 22.26 5.53 16.30 10.21CEPS(Rs 48.94 32.51 16.92 24.54 17.27DPS(Rs) 0.00 0.00 0.00 0.00 0.00Book NAV/Share(Rs) 141.38 108.23 85.97 80.44 64.03Tax Rate(%) 30.44 32.04 31.91 33.92 28.09Margin RatiosCore EBITDA Margin(%) 6.51 6.02 -1.77 5.34 4.12EBIT Margin(%) 5.11 4.81 2.09 5.83 3.86Pre Tax Margin(%) 5.06 4.49 1.64 5.27 3.40PAT Margin (%) 3.52 3.05 1.12 3.48 2.45Cash Profit Margin (%) 5.20 4.46 3.43 5.24 4.14Performance RatiosROA(%) 25.41 18.62 5.00 16.63 11.16ROE(%) 26.57 22.93 6.64 22.95 17.32ROCE(%) 36.87 29.33 9.34 27.87 17.61Asset Turnover(x) 7.22 6.10 4.47 4.78 4.56Sales/Fixed Asset(x) 5.21 4.51 3.25 3.51 3.99Working Capital/Sales(x) 17.94 25.89 10.20 35.86 10.44Efficiency Ratios
  • 13. Fixed Capital/Sales(x) 0.19 0.22 0.31 0.28 0.25Receivable days 7.44 6.54 9.27 9.87 12.10Inventory Days 15.61 17.41 21.85 16.56 19.72Payable days 11.24 14.83 26.68 25.38 33.50Valuation ParametersPER(x) 5.51 3.28 16.12 3.22 5.98PCE(x) 3.73 2.24 5.27 2.14 3.53Price/Book(x) 1.29 0.67 1.04 0.65 0.95Yield(%) 0.00 0.00 0.00 0.00 0.00EV/Net Sales(x) 0.24 0.12 0.33 0.19 0.30EV/Core EBITDA(x) 2.69 1.51 5.07 1.83 3.29EV/EBIT(x) 3.57 1.96 10.67 2.38 4.73EV/CE(x) 1.17 0.60 0.88 0.68 0.73M Cap / Sales 0.25 0.13 0.26 0.15 0.24Growth RatioNet Sales Growth(%) 29.92 66.06 -1.88 39.25 12.49Core EBITDA Growth(%) 41.05 108.64 -38.93 59.47 -11.51EBIT Growth(%) 37.25 239.65 -62.21 76.16 117.99PAT Growth(%) 48.94 302.85 -66.10 65.88 179.18EPS Growth(%) 48.94 302.85 -66.10 59.66 179.18Financial Stability RatiosTotal Debt/Equity(x) 0.04 0.05 0.46 0.19 0.63Current Ratio(x) 1.59 1.39 1.83 1.25 2.39Quick Ratio(x) 1.06 0.92 1.22 0.81 1.70Interest Cover(x) 106.66 15.25 4.68 10.33 8.43
  • 14. Total Debt/Mcap(x) 0.03 0.08 0.44 0.29 0.66 4)Products of Ashika stock Broking Online Trading Commodities DP Services PMS (Portfolio Management Services) Insurance IPO Advisory Mutual Fund Personal loans Quality Assurance E-Broking Ashika has different products and voila trading on BSC, NSC, F&O, MCX & NCDEX. It provides four software‘s to customers for online trading. Ashika Investor a) User-friendly browser for investors b) Easy online trading platform c) Works in proxy and firewall system set up d) Integrated back office: access account information- anytime, anywhere. e) Streaming quotes f) Refresh static rates when required g) Multiple exchanges on single screen h) Online fund transfer facility Ashika Trade Browser based for investor No installation required Advantage of mobility Trading as simple as internet surfing BSC, NSC, F&O, MCX & NCDEX
  • 15. Ashika Diet Application based ideal for traders. Multiple exchanges on single screen Online fund transfer facility User friendly & simple navigationBSC, NSC, F&O, MCX & NCDEXAshika Anywhere Application-based platform for day traders Intra-day/historical charts with various indicators Online fund transfer facility BSC, NSC, Cash & DerivativesServices-
  • 16. a) Equity Trading b) Commodity Trading c) Currency Trading d) Internet Trading e) Depository Services f) IPO Distribution g) Mutual Fund Distribution h) Bond Distribution i) Investment Banking j) Research and Advisory k) NSEL Fixed Contracts l) Portfolio Management m) Corporate LendingPolicy statement-Ashika Stock Broking Limited is fully committed to combat any effort of laundering moneyearned through drug trafficking, terrorism and any other means of organized and seriouscrimes by any individual or entity. Towards this Ashika Stock Broking Limited has put inplace all such processes and procedures of internal control aimed at preventing and impedingany attempt of money laundering and terrorist financing using the services offered by itsgroup companies. The policies and procedures to Combat Money Laundering cover:Communication of group policies relating to prevention of money launderingand terroristfinancing to all management and relevant staff that handles account information, securitiestransactions, money and customers record etc. whether in branches, departments orsubsidiaries. Customer acceptance policy and customer due diligence measures, including requirements for proper identification. Maintenance of records. Compliance with relevant statutory and regulatory requirements. Co-operation with the relevant law enforcement authorizes, including the timely disclosure of information.
  • 17. Role of internal audit or compliance function to ensure compliance with policies, proceduresand control including detecting suspected money laundering transactions, evaluating andchecking the adequacy of exception reports generated on larger or irregular transaction andlevel of awareness of front line staff of their responsibilities in this regards.(A) Prevention of Money Laundering1. Offense of money – laundering Whosever directly or indirectly attempts to indulge orknowingly assists or knowingly is a party or is actually involved in any process or activityconnected with the proceeds of crime and projecting it as untrained property shall be guilty ofoffence of money laundering.2. Punishment for money – laundering whose ever commits the offence of money launderingshall be punishable as defined under the act and guidelines.(B) Customer Due Diligence Obtaining sufficient information in order to identify persons who beneficially own orcontrol securities account. Whenever it is apparent that the securities acquired or maintainedthrough an account are beneficially owned by a party other than the clients, that party will beidentified using client identification and verification procedures. The beneficial owner is thenatural person or persons who ultimately own, control or influence a client and/or persons onwhose behalf a transaction is being conducted. It also incorporates those persons whoexercise ultimate effective control over a legal person or arrangement. Verify the customer‘s identify using reliable, independent source documents, data orinformation. Identify beneficial ownership and control. I.e. determine which individually (s)ultimatelyown(s) or control(s) the customer and/or the person on whose behalf a transaction is beingconducted. Verify the identity of the beneficial owner of the customer of the customer and / or theperson on whose behalf a transaction is being conducted, corroborating the informationprovided in relation to (c). Conduct on-going due diligence and scrutiny i.e. perform ongoing scrutiny of thetransactions and account throughout the course of the business relationship to ensure that thetransaction being conducted are consistent with the registered intermediary‘s knowledge ofthe customer, its business and risk profile, taking into account, whose necessary, thecustomer‘s source of funds.(C) Policy for acceptance of clients:As a measure of customer acceptance policies and procedures that aim to identify the types ofcustomers that are likely to pose a higher than the average risk of moneylaundering orterrorist financing following safeguards are to be followed while accepting the clients.As a measure of customer acceptance policies and procedures the following safeguards are tobe followed while accepting the clients: a. No account is opened in a fictitious b. Ensure that an account is not opened where the company is unable to apply b. Appropriate client due diligence measures / KYC policies. This may be applicable in Cases where it is not possible to ascertain the identity of the client, information provided to the company is suspected to be non-genuine, perceived non-cooperation of the client in providing full and complete information. The company will not continue to do business with such a person and file a suspicious activity reporter an anonymous basis.
  • 18. c. The client will be identified be the company be using reliable sources including documents / information. The intermediary will obtain adequate information to satisfactorily establish the identity of each new client and the purpose of the intended nature of the relationship. d. Necessary checks and balance to be put into place before opening an account so as to ensure that the identity of the client doesn‘t match with any person having known criminal background or is not banned in any other manner, whether in terms of criminal or civil proceedings by any enforcement agency worldwide. e. The person acting for/on behalf of the clients shall have an authority / consent letter. Adequate verification of a person‘s authority to act on behalf the client will also be carried out by the compliance department. f. Factors of risk perception (in terms of monitoring suspicious transactions) of the clients are clearly defined having regard to client‘s location (registered office address, correspondence addresses and other addresses if applicable), nature of business activity, turnover etc. and the manner of making payment for transaction undertaken. g. Documentation requirement and other information to be collected in respect of different classes of clients depending on perceived risk and having regard to the requirement to the prevention of money laundering act 2002, guidelines issued by SEBI from time to time. h. Wherever any employee of Ashika Stock Broking Limited dealing with the client or a prospective client has a reason to believe that the client will be categorizedas ―high risk‖ client and therefore needs a higher degree of due diligence, he shall bring the same to the notice of the principal officer. i. The ―Know your client‘s (KYC) policy will clearly spell out the client identification procedure to be carried out at different stages i.e. while establishing the company – client relationship, while carrying out transactions for the client or when the company has doubts regarding the veracity or the adequacy of previously obtained client identification data. j. In order to further strengthen the KYC norms and identify every participant in the securities market with their respective PAN there by ensuring sound audit trail of all the transactions, PAN has been made sole identification number for all participants transacting in the securities market, irrespective of the amount of transaction. k. Where the client is a politically exposed person (PEP), we shall take approval from the senior management before establishing any kind of business relationship with such person. Where such a client has been accepted and the client or beneficial owner is subsequently found to be or subsequently become PEP, the approval of the senior management would be obtained to continue the business relationship. Additionally reasonable measures to verify the source of funds of the client identified as PEP would be taken. l. Failure by prospective client to provide satisfactory evidence of identify will be noted and reported to the higher authority within the company. m. As a policy, Ashika Stock Broking Ltd. shall not accept cash from any clients. n. Each original document will be seen prior to acceptance of a copy.High Risk Clients:It is generally recognized that certain customers may be of a higher or lower risk categorydepending on circumstances such as the customers‘ background, type of business relationship
  • 19. or transaction etc. As such the company will apply each of the customers due diligencemeasures on a risk sensitive basis.Client of Special Category (CSC):Such client includes the following: a. Non-resident Clients b. High net worth Clients c. Trust, charities, NGOs and organization receiving donations d. Companies having close family shareholdings or beneficial ownership. e. Politically exposed persons PEP are individually who are or have been entrusted with prominent public junctions in a foreign country e.g. Heads of States or of Governments, Senior Politicians, Senior Government / Judicial / Military Officer, Senior Executives of State owned Corporation, important Politically Party Officials etc. including family members or close relatives of PEP. f. Companies offering foreign exchange offerings. g. Clients in high risk countries (where existence / effectiveness of money laundering controls is suspect or which do not or insufficiently apply FATF standards, where there is unusual banking secrecy, countries where corruption (as per Transparency International Corruption Perception Index) is highly prevalent, Countries against which government sanctions are applied, Countries reputed to be any of the following – Havens / sponsors of international terrorism, offshore financial centres, tax heavens, countries where fraud is highly prevalent. h. Non face to face clients. i. Clients with dubious reputation as per public information available etc.The above mentioned list is only illustrative and Company and Principal Officer will exerciseindependent judgment to ascertain.(D) Maintenance of Records:(a) We shall maintain a record of all transactions, as mentioned in point no (1), whether suchtransactions comprise of a single transaction or a series of transactions integrally connected toeach other, and where such series of transactions takes place within a month.(b) All cash transactions where forged or counterfeit currency notes or bank notes have beenused as genuine and where any forgery of a valuable security has taken place.(c) All suspicious transactions whether or not made in cash and by way of.CommoditiesA commodity is a basic good representing a monetary value. Commodities are mostoftenused as inputs in the production of other goods or services. With the advent of new onlineexchange, commodities can now be traded in futures markets. Whenthey are traded on anexchange,Commodities must also meet specified minimum standards known as basic grade.Advantages at ashika-1)Hedging StrategiesWe provide advice on hedging strategy for corporate clients and arbitrage. Whether you arenew comer or an experienced trader we provide you strategies that keep you one step ahead
  • 20. in the market.2)Gain from researchBefore investing in the commodities market, you need to do a thorough research of the prosand the cons associated. Why take the headache? Allow us to help you out. Our experiencedresearch team ensures you get accurate and timely advice so that you can take the correctdecision. You get: technical research support on commodities, advice on where and how totrade and hedging strategies.3)Customer serviceWe have a dedicated team of professionals to help you at every step in the commodities. Ourexecutives are chosen because of their acumen, expertise and knowledge. Whatever yourquery or requirement, you can expect knowledgeable, polite and timely service.4)ChoicesAshika is a member of both the leading commodities exchanges of India: MCX and NCDEXPlus, you get the option to trade in NMCE, NSEL, ICEX, ACEL& NSPOT.For the listed commodities please visit the home page of major exchanges‘website: MCX, NCDEX and NSEL .For more on our USPs and differentiating factors, please click on Why Ashika. The sectiontalks of the aspects that set us apart from other financial service providers.Depositary Participant ServicesAshika Broking Ltd. is a DP services provider though CDSL. We offer depositoryservices tocreate a seamless transaction platform to execute trades through Ashika group of companiesand settle these transactions through Ashika Depository services. a) Wide branch coverage b) Personalized/attentive services of trained a dedicated staff c) Centralized billing & accounting d) Acceptance & execution of instruction on fax e) Daily statement of transaction & holdings statement on e-mail f) No charges for extra transaction statement & holdings statement.
  • 21. Portfolio Management ServicesSuccessful investing in Capital Markets demands ever more time and expertise.InvestmentManagement is an art and a science in itself. Portfolio ManagementServices (PMS) isone such service that is fast gaining eminence as an investmentavenue of choice for High Networth Investors (HNI). PMS is a sophisticatedinvestment vehicle that offers a range ofspecialized investment strategies tocapitalize on opportunities in the market. The PortfolioManagement Servicecombined with competent fund management, dedicated researchand technology,ensures a rewarding experience for its clients. Ashika PMS brings with ityears of experience, expertise, research and the backing of Indias leading stock brokinghouse. At Ashika, experienced portfolio management isthe difference. It will advise you on asuitable product based on factors such as your investment horizon, return expectations andrisk tolerance.Mutual FundTo enable clients to diversify their investment in the right direction. Ashika Brokinghasadded another product in its range with mutual funds. Access to in-depth research & proper selection from diversified funds basedon your preferred criteria. Rating and rankings of all mutual funds from our in house expert analysts. News and alert for your Mutual fund Portfolio and performance tracking withwatch lists. Current and historical performance of different funds enabling comparisons.Benefits  No risk of loss, wrong transfer, mutilation or theft of share certificates.  Hassle free automated pay-in of your sell obligations by your clearingmembers.  Reduced paper work.  Speedier settlement process. Because of faster transfer and registration of securities in your account, increased liquidity of your securities.  Instant disbursement of non-cash benefits like bonus and rights into your account.  Efficient pledge mechanism.FUNDAMENTAL SERVICESThe Sunday Weekly ReportThis weekly report is ace of all the reports. It offers acomprehensivemarket overviewand likely trends in the week ahead. It also presents top picksbased on an in-depthanalysis of technical and fundamental factors. It gives short term andlong-termoutlook on these scripts, their price targets and advice trading strategies.Another unique feature of this report is that it provides an updated view of about 70prominentstocks on an on-going basis.Stock Analysis Ashika‘s stock research has performedvery well over the past few years and Ashika model portfolio has consistently outperformedthe benchmark indices. Thefundamentals of select scripts are thoroughly analysed andactionable advice isprovided along with investment rationale for each scripts.Flash NewsKeydevelopments and significant news announcement that are likely to have animpact on market/scripts are flashed live on trading terminals. Flash news keepsthe market men updated on anonline basis and helps them to reshuffle their holdings
  • 22. TECHNICAL SERVICESIntra-Day CallsFor day trader‘s Ashika provides intraday calls with entry, exit and stop loss levelsduring themarket hours and our calls are flashed on our terminals. Our analystscontinuously track thecalls and provide the recommendations according to themarket movements. Past performanceof these calls in terms of profit/loss is alsoavailable to our associates to enable them to judgethe success rate.Posting Trading Calls Ashika ―Position Trading Calls‖ are based on athrough analysis of the pricemovements in selected scripts and provides calls for takingpositions with a 10 - 15days time span with stop losses and targets. These calls are alsoflashed on our terminals during market hours.Derivative StrategiesOur analyst take a view onthe NIFTY and selected scripts based on derivatives andtechnical tools and devise suitable―Derivative Strategies‖ , which are flashed on our terminals and published in ourderivative reports.Future CallsA customised product for HNIs to help them tradewith leveraged positions whereinclients are advised on stocks with entry, exit and stop losslevels for short-termbenefits. Over and above this, financial status of the calls is mentioned atall times.Introduction of Stock MarketIn most industrialized countries, a substantial part of financial wealth is not manageddirectlyby savers, but through a financial intermediary, which implies the existenceof an agencycontract between the investor (the principal) and a broker or portfoliomanager (the agent).Therefore, delegated brokerage management is arguably oneof the most important agencyrelationships intervening in the economy, with apossible impact on financial market andeconomic developments at a macro level.As the per-capita-income of the city is on the higherside, so it is quite obvious thatthey want to invest their money in profitable ventures. On theother hand, a number of brokerage houses make sure the hassle free investment instocks. Assetmanagement firms allow investors to estimate both the expected risks andreturns, as measured statistically. There are mainly two types of Portfoliomanagementstrategies.  Passive Portfolio Strategy  Active Portfolio Strategy 1) Passive Portfolio Strategy:A strategy that involves minimal expectationinput, and instead relies on diversification tomatch the performance of somemarket index. A passive strategy assumes that themarketplace will reflect allavailable information in the price paid for securities.2) Active Portfolio Strategy:A strategy that uses available information andforecasting techniques to seek a betterperformance than a portfolio that issimply diversified broadly.Indian Stock MarketShare or stock:-Is a document issued by a company, which entitles its holder to beone of theowners of the company a share is issued by a company or can bepurchased from the stockmarket.
  • 23. Share market:-where dealing of securities is done is known as share market.There are twoways in which investors gets share from market-  Primary market: markets in which new securities are issued are known as primary market. This is part of the financial market where enterprises issue their new sharesand bonds. It is characterized by being the only moment when the enterprisereceived money in exchange for selling its financial assets.  Secondary Market: Market in which existing securities are dealt is known assecondary market. The market where securities are traded after, they are initiallyoffered in the primary market. Most trading is done in the secondary market.The Stock Market is an invisible market that trades in stocks of various companiesbelonging to both the public and private sectors. The Indian Stock Market is oftenreferred to as the Share Market since it deals primarily with shares of variouscompanies.A Stock Exchange is a place where the stocks are listed and traded. Suchexchanges may be a corporation or mutual organization which specializes in thebusiness of introducing the sellers with the buyers of stocks and securities.The Indian Stock Market in India comprises of two stock exchanges: o Bombay Stock Exchange (BSE) o National Stock Exchange (NSE)BSEThe Bombay Stock Exchange (BSE) was established in 1875.The BSE India StockExchangeserves as the most important for companies to raise money. The chief function of the StockMarket of India is to help raise money as capital for the growthand expansion of variousprivate and public sector enterprises. Besides, the StockMarket of India providesable assistance to the individual investors through dailyupdates on current position of thestocks of the respective companies that areenlisted in the Stock Index in which the movementof prices in a section of themarket are captured in price indices. The popular acronym forStock Index isSensitive index or Sensex. Moreover, the liquidity provided by the exchangeenablesthe investors to sell securities owned by them easily and quickly. Hence a person,whois subjected to sudden dearth of funds, can immediately sell his shares for cashin India StockMarket.The BSE Sensex, also known as ―BSE 30‖ is a widely used market index not onlyinIndia but across Asia. In terms of volume of transactions, it is ranked among the topfivestock exchanges in the world.NSEThe National Stock Exchange of India Ltd. (NSE), set up in the year 1993, is todaythe largeststock exchange in India and a preferred exchange for trading in equity,debt and derivativesinstruments by investors. NSE has set up a sophisticatedelectronic trading, clearing andsettlement platform and its infrastructure serves as arole model for the securities industry.The standards set by NSE in terms of marketpractices; products and technology have becomeindustry benchmarks and arebeing replicated by many other market participants.NSEprovides a screen-based automated trading system with a high degree of transparency andequal access to investors irrespective of geographical location.The high level of informationdissemination through the on-line system has helped inintegrating retail investors across thenation.The exchange has a network in more than 350 cities and its trading membersareconnected to the central servers of the exchange in Mumbai through a sophisticatedelectronic communication network comprising of over 2500 VSATs.NSE has around 850 trading members and provides trading in equity shares anddebtsecurities. Besides this, NSE provides trading in various derivative products such as
  • 24. indexfutures, index options, stock futures, stock options and interest rate futures.In additionto these organizations there are other organizations highlighting on the sharetrading in theIndian Stock Market are:Securities and Exchange Board of India (SEBI)NSDLCDSLThe Nifty and the Sensex are the indicators which are the parameters denoting theprices ofthe stocks of the major companies of the NSE and the BSE respectively.Stock Broking Sector in IndiaThe Indian broking industry is one of the oldest trading industries that has beenaround evenbefore the establishment of the BSE in 1875. Despite passing through anumber of changes inthe post liberalization period, the industry has found its waytowards sustainable growth. Inthis section our purpose will be of gaining a deeper understanding about the role of the Indianstock broking industry in the country‘s economy.What is meant by a Stock Exchange?The Securities Contract (Regulation) Act, 1956 [SCRA] defines ‗Stock Exchange‘ asanybodyof individuals, whether incorporated or not, constituted for the purpose of assisting,regulating or controlling the business of buying, selling or dealing insecurities. Stockexchange could be a regional stock exchange whose area of operation/jurisdiction is specifiedat the time of its recognition or national exchanges,which are permitted to have nationwidetrading since inception. NSE wasincorporated as a national stock exchange.What are an ‘Equity’/Share?Total equity capital of a company is divided into equal units of small denominations,eachcalled a share. The holders of such shares are members of the company andhave votingrights.What is a ‘Debt Instrument’?Debt instrument represents a contract whereby one party lends money to another onpre-determined terms with regards to rate and periodicity of interest, repayment of principalamount by the borrower to the lender. In the Indian securities markets, theterm ‗bond‘ is usedfor debt instruments issued by the Central and Stategovernments and public sectororganizations and the term ‗debenture‘ is used for instruments issued by private corporatesector.What is a Derivative?Derivative is a product whose value is derived from the value of one or more basicvariables,called underlying. The underlying asset can be equity, index, foreignexchange (forex),commodity or any other asset. Derivative products initiallyemerged as hedging devicesagainst fluctuations in commodity prices andcommodity-linked derivatives remained the soleform of such products for almostthree hundred years. The financial derivatives cameinto spotlight in post-1970period due to growing instability in the financial marketsWhat is a Mutual Fund?A Mutual Fund is a body corporate registered with SEBI (Securities Exchange Boardof India)that pools money from individuals/corporate investors and invests the samein a variety ofdifferent financial instruments or securities such as equity shares,Government securities,
  • 25. Bonds, debentures etc. Mutual funds can thus be consideredas financial intermediaries inthe investment business that collect funds from thepublic and invest on behalf of theinvestors. Mutual funds issue units to the investors.The appreciation of the portfolio orsecurities in which the mutual fund has investedthe money leads to an appreciation in thevalue of the units held by investors. Theinvestment objectives outlined by a Mutual Fundin its prospectus are binding on theMutual Fund scheme. The investment objectives specifythe class of securities aMutual Fund can invest in. Mutual Funds invest in various assetclasses like equity, bonds, debentures, commercial paper and government securities. Theschemesoffered by mutual funds vary from fund to fund. Some are pure equityschemes;others are a mix of equity and bonds. Investors are also given the option ofgettingdividends, which are declared periodically by the mutual fund, or to participate onlyinthe capital appreciation of the scheme.What is an Index?An Index shows how a specified portfolio of share prices is moving in order to giveanindication of market trends. It is a basket of securities and the average pricemovement of thebasket of securities indicates the index movement, whether upwards or downwards.What is a Depository?A depository is like a bank wherein the deposits are securities (viz. shares,debentures, bonds,government securities, units etc.) in electronic form.What is Dematerialization?Dematerialization is the process by which physical certificates of an investor areconverted toan equivalent number of securities in electronic form and credited to theinvestor‘s accountwith hisDepository Participant(DP).What is meant by ‘Securities’?The definition of ‗Securities‘ as per the Securities Contracts Regulation Act (SCRA),1956,includes instruments such as shares, bonds, scripts, stocks or other marketable securities ofsimilar nature in or of any incorporate company or bodycorporate, government securities,derivatives of securities, units of collectiveinvestment scheme, interest and rights insecurities, security receipt or any other instruments so declared by the Central Government.What is the function of Securities Market?Securities Markets is a place where buyers and sellers of securities can enter intotransactionsto purchase and sell shares, bonds, debentures etc. Further, it performsan important role ofenabling corporate, entrepreneurs to raise resources for their companies and business venturesthrough public issues. Transfer of resources fromthose having idle resources (investors) toothers who have a need for them(corporate) is most efficiently achieved through thesecurities market. Statedformally, securities markets provide channels for reallocationof savings toinvestments and entrepreneurship. Savings are linked to investments by avariety of intermediaries, through a range of financial products, called ‗Securities‘.Which are the securities one can invest in?  Shares  Government Securities  Derivative products  Units of Mutual Funds etc.
  • 26. Why does Securities Market need Regulators?The absence of conditions of perfect competition in the securities market makes therole ofthe Regulator extremely important. The regulator ensures that the marketparticipants behavein a desired manner so that securities market continues to be amajor source of financefor corporate and government and the interest of investorsare protected.Who regulates the Securities Market?The responsibility for regulating the securities market is shared by Department of EconomicAffairs (DEA), Department of Company Affairs (DCA), Reserve Bank of India (RBI) andSecurities and Exchange Board of India (SEBI).What is SEBI and what is its role?The Securities and Exchange Board of India (SEBI) is the regulatory authority inIndiaestablished under Section 3 of SEBI Act, 1992. SEBI Act, 1992 provides for establishment ofSecurities and Exchange Board of India (SEBI) with statutorypowers for(a) Protecting the interests of investors in securities.(b) Promoting thedevelopment of the securities market.(c) regulating the securities market. Itsregulatory jurisdiction extends over corporates in the issuance of capital and transferofsecurities, in addition to all intermediaries and persons associated with securitiesmarket.SEBI has been obligated to perform the aforesaid functions by suchmeasures as it thinks fit.In particular, it has powers for:  Regulating the business in stock exchanges and any other securities markets  Registering and regulating the working of stock brokers, sub–brokers etc.  Promoting and regulating self-regulatory organizations  Prohibiting fraudulent and unfair trade practice.Calling for information from, undertaking inspection, conducting inquiries andaudits of thestock exchanges, intermediaries, self- regulatory organizations,mutual funds and otherpersons associated with the securities market.Broking houses in IndiaIndia is a country having a big list of Broking Houses. The Equity Broking Industry inIndiahas several unique features like it is more than a century old, dynamic, forwardlooking, andgood service providers, well conversant, highly innovative and evenadaptable. Theregulations and reforms been laid down in the Equity Market hasresulted in rapid growth anddevelopment. Basically, the growth in the equity marketis largely due to the effectiveintermediaries.The Broking Houses not only act as an intermediate link for the Equity Marketbutalso for the Commodity Market, Foreign Currency Exchange Market, and many more.The Broking Houses has also made an impact on the Foreign Investors toinvest in India tocertain extent.In the last decade, the Indian brokerage industry has undergone adramatictransformation. From being made of close groups, the broking industry today isoneof the most transparent and compliance oriented businesses. Long settlement cyclesandlarge scale bad deliveries are a thing of the past with the advent of T+2settlement cycle anddematerialization. Large and fixed commissions have beenreplaced by wafer thin margins,with competition driving down the brokerage fee, insome cases, to a few basis points.Therehave also been major changes in the way business is conducted. Technologyhas emerged asthe key driver of business and investment advice has becomeresearch based. At the sametime, adherence to regulation and compliance hasvastly increased. The scope of services have
  • 27. enhanced from being equity productsto a wide range of financial services. Investor protectionhas assumed significance.Some basics of stock and capital marketInvestmentThe money you earn is partly spent and the rest saved for meeting future expenses.Instead ofkeeping the savings idle you may like to use savings in order to get returnon it in the future.This is called Investment.Why should one invest?  Earn return on your idle resources.  Generate a specified sum of money for a specific goal in life.  Make a provision for an uncertain futureOne of the important reasons why one needs to invest wisely is to meet the cost of inflation.Inflation is the rate at which the cost of living increases. The cost of living issimply what itcosts to buy the goods and services you need to live. Inflation causesmoney to lose valuebecause it will not buy the same amount of a good or a servicein the future as it does nowor did in the past.What care should one take while investing?  Obtain written documents explaining the investment.  Read and understand such documents.  Verify the legitimacy of the investment.  Find out the costs and benefits associated with the investment.  Assess the risk-return profile of the investment.  Know the liquidity and safety aspects of the investment.  Ascertain if it is appropriate for your specific goals.  Compare these details with other investment opportunities available.  Examine if it fits in with other investments you are considering.  Deal only through an authorised intermediary.  Seek all clarifications about the intermediary and the investment.  Explore the options available.5) Major Players in the Region/competitors- Religare Securities ICICI Direct India Infoline Security Pvt. Ltd. HDFC Securities India bulls Kotak Securities Reliance Money Share khan Securities Motilal Oswal Anand Rathi Securities Hem Securities
  • 28. RELIGARE SECURITIES LIMITEDReligare Enterprises Limited is Ranbaxy Laboratories Limited promoted financial productand service Provider Company. Religare provides its service in three different segmentsincluding Retail, Wealth management and the Institutional spectrum. It offers wide range ofservices including equities, commodities, insurance broking, wealth advisory, PMS, personalfinance services, Investment banking and institutional broking services. Religareretail network spreads across more than 900locations across more than 300 cities and townsin India.Religare Securities Limited:- is a subsidiary company of Religare Enterprises Ltd andinvolve in equity related services include online trading at BSE and NSE, Derivatives,commodities, IPO, Mutual fund, Investment banking and institutional broking services. RELoffers a multitude of investment options and a diverse bouquet of financial services and canboast of a reach that spreads across the length and breadth of the country with its presencein more than 1460 locations across more than 450 cities and towns.Services Equity & Derivatives Research and Advisory Depository Portfolio Management Services International Advisory Fund Management Services (AFMS) Investment BankingICICI DIRECTICICI Web Trade Limited (IWTL) maintains www.icicidirect.com (herein after referred to asthe "Website") whereas IWTL is an affiliate of ICICI Bank Limited and the Website isowned by ICICI Bank Limited. IWTL has launched and established an online trading serviceon the Website.Products and Services of ICICI DIRECT Investing in Mutual funds Personal Finance Customer Service Features IPO‘s Margin Trading Margin PLUS Trading Call Trade
  • 29. Trading on NSE/BSE Trade in derivativesIndia Infoline Security Private Ltd.India Infoline.com Securities Pvt. Ltd. is a wholly owned subsidiary of IndiaInfoline.com Ltdand is the stock broking arm of India Infoline.com. The subsidiary was formed to complywith regulatory guidelines.www.5paisa.comIs a focused website for online stock market trading. 5paisa.com is a trade name ownedby the India Infoline.com group. IILSPL has applied for trading membership of the BSEunder Securities and Exchange Board of India (Stock Brokers and Sub-Brokers) Rules 1992.Product offered by IILSPLStock market:-IILSPL deals in stock market by trading in equity and derivatives.Personal finance: -It Deals In Mutual Fund and Insurance.Online Trading: -It provides services in stock and commodity trading (through Internet).HDFC SECURITYHDFC securityIs the subsidiary of HDFC (Housing Development Financial Corporation).www.hdfcsec.comwould have an exclusive discretion to decide the customers who would be entitled to itsonline investing services. www.hdfcsec.comalso reserves the right to decide on the criteriabased on which customers would bechosen to participate in these services .The present website (www.hdfcsec.com)contains features of services that they offer/propose to offer in duecourse. Thelaunch of new services is subject to the clearance of the regulators.i.e.SEBI,NSE andBSE.Product offered by HDFC Security Online trading for Resident & Non Resident Indians. Cash-n-Carry on both NSE and BSE. Day trading on both NSE and BSE. Trade on Futures & Options on the NSE. Online IPOs. Telephone-based Broking (Equity & Derivatives).INDIABULLS SECURITIES LIMITEDIndia bulls Securities Limited was incorporated as GPF Securities Private Limited onJune 9,1995. The name of the company was changed toOrbisSecuritiesPrivatelim i t e d o n D e c e m b e r 1 5 , 1 9 9 5 t o c h a n g e t h e
  • 30. p r o f i l e o f t h e c o m p a n y a n d subsequently due to the conversion of thecompany into a public limited company;the name was further changed to OrbisSecurities Limited on January 5, 2004.Thena m e o f t h e c o m p a n y w a s a g a i n c h a n g e d t o I n d i ab u l l s S e c u r i t i e s L i m i t e d o n February 16, 2004 so as to capitalize on the brandimage of the term ―Indiabulls‖ int h e c o m p a n y n a m e . I S L i s a c o r p o r a t e m e m b e r o f c a p i t a l m a r k e t & d e r i v a t i v e segment of TheNational Stock Exchange of India Ltd.PRODUCT OFFERED BY INDIA BULLS Equity & Debt Stock Broking Insurance Commodity trading Depository Services Derivatives Broking Services Equity Research Services Mutual Fund Distribution IPO DistributionSHAREKHAN SECURITIESSharekhan Securities is one of the leading retail brokerage of Citi Venture which isrunningsuccessfully since 1922 in the country. Earlier it was the retail broking arm of the Mumbai-based SSKI Group, which has over eight decades of experience in thestock broking business.Sharekhan offers its customers a wide range of equityrelated services including tradeexecution on BSE, NSE, Derivatives, depositoryservices, online trading, investment adviceetc.SSKI group ventured into institutional broking and corporate finance 18 years ago.SSKIis one of the leading players in institutional broking and corporate financeactivities. SSKIholds a sizeable portion of the market in each of these segments.SSKI‘s institutional brokingarm accounts for 7% of the market for ForeignInstitutional portfolio investment and 5% of allDomestic Institutional portfolioinvestment in the country. It has 60 institutional clients spreadover India, Far East,UK and US. Foreign Institutional Investors generate about 65% of theorganization‘s revenue, with a daily turnover of over US$ 2 million. Equity Trading Platform (Online/Offline). Commodities Trading Platform (Online/Offline). Portfolio Management Service. Mutual Fund Advisory and Distribution.
  • 31. Insurance Distribution.6) Other information-Ashika Customer Care PolicyBackground:This policy has been made on the fundamental belief of the Ashika Group thatCustomer is the King. Forour organization to survive and grow, we need to cater to all theexpectations of the customer to thebest of our abilities.What is Customer Service?Customer service involves understanding the problem of the customer, lending him a helpinghand and answering to each and every query of the client.Understand the query of the customer patiently  Answer him/her in the most timely manner.  The information given needs to be 100% correct.  The information needs to be conveyed in the easiest language to the understanding of the customer.  Maintain the confidentiality of data by verifying the details of the customer.At Ashika, the definition of customer service has been taken to the next level, where weintend to go beyond the general parameters of Customer Satisfaction and end up Delightingthe Customer.How does Ashika go about servicing its customers?Two major customers of Ashika are its clients and its partners. We have developed specificprocesses to answer to each and every query of both the clients and the associates.For Clients:Toll-free Service: Ashika has a dedicated toll-free customer service number 1800-212-2525.This is anIVR service where the customer can talk directly to the relevant department andresolve the problem in the quickest possible time.Online Customer Service Portal: We believe that most of the general queries of the customercan be resolved instantaneously without any human interface. For this purpose, Ashika hasdeveloped an inhouse online application whereby the customer can resolve most of hisgeneral queries by going online to this portal. This requires the client to feed in his/her clientcode with PAN number and then a host of reports can be accessed on real-time basis. Thisportal can be accessed at: Online Customer Care.Client Communication: Sticking to our belief of providing proactive information in the mostlucid manner, Ashika Customer Communication team ensures that a whole host ofinformation reaches to the customer from time to time in the shortest and clearest possibleway.For Associates:Toll-free Service: Ashika‘s toll-free customer service number 1800-212-2525 can also beaccessed by its partners. This is an IVR service where the partner can talk directly to therelevant department andresolve the problem in the quickest possible time. There are certaindedicated menus only for theassociates which solve their specific queries.
  • 32. Sahayak: Sahayak is the associate‘s online window to the world of Ashika. This web-basedmodule developed in-house by Ashika allows the partner to register all his queries/problemsonline. These get routed to the relevant departments who in turn resolve them online. Theentire process gets tracked ona real-time basis to ensure fastest and best possible service inthe most convenient manner for thepartner. Sahayak also offers chatting facility whereby thepartner can talk to his Risk Manager for limitsand to the Research Analyst for stock tips inreal-time live market scenario. There are many othermodules in Sahayak which ensure thatproactive support to the partners is given.RM Facility: Each partner of Ashika has a dedicated Risk manager who looks after the tradepositions, limits and risk in each client of the franchisee. This person is constantly in touchwith the associate and informs him proactively of any untoward market movement and itsimpact on the client as well asensures that the franchisee does not fall in risk due to client‘sexposure.Important Details:Customer Service Toll-free number: 1800-212-2525Board line Number: 033-40102500Email address: customercare@ashikagroup.com, sahayak@ashikagroup.comWebsite address: www.ashikagroup.com
  • 33. Introduction:-Ashika stock Broking is one of the leading integrated financial services institutions of India.The company offers a large and diverse bouquet of services ranging from equitiescommodities, insurance broking to wealth advisory, portfoliomanagement services, personalfinance services Investment broking andinstitutional broking services. The services arebroadly clubbed across three key business verticals-retail, wealth management and theinstitutional spectrum. Ashika stock Broking limited is the holding company for allits business,structured and being operated through various subsidiaries. Ashika‘s retailnetwork spreads across the length and breadth of the country with itsPresence through morethan 1217 location across more than 400cities and towns. Havingspread itself fairy wellacross the country and with the promise of not resting on itslaurels it has also aggressivelystarted eyeing global geographies.Statement of problem-Why company is giving training?  To develop knowledge of candidate.  To improve skills of trainee.  To create best human resource in their company.  To enhance company image.  To reduce risk.  To increase safety.RESEARCH:We at Ashika stock Broking believe in providing independent research for client tomakeinvestment decisions, with strict emphasis on self-regulation avoiding possibleconflictof interest in objectively.Backed by a strong pool of highly skilled research analysis we offervariedresearch product and services.OUR RESEARCH PRODUCTS:Fundamental researchTechnical researchDaily reportsIntraday trading tech callsIntraday derivative callDirectional F & O callsStructured productsIndex ArbitrageArbitrage between Index (NIFTY) Futures and its constitutes (Underlying Stock Futures).Volatility Trading.Arbitrage between volatilities i.e. between implied volatility of option andforecastedvolatility of underlying stock futures.OBJECTIVE:  To study the various features of equity market.  To study the criterion of different companies for opening d-mat & trading accounts.
  • 34.  To study all kind of financial services provided by Ashika stock Broking to its client.Definition of Equity MarketThe market in which shares are issued and traded, either through exchanges or over-the-counter markets. Alsoknown as the stock market, it is one of the most vital areas of a market economy because it gives companiesaccess to capital and investors a slice of ownership in a company with the potential to realize gains based on itsfuture performance.The following are the main features of equityLimited liability: The liability of a shareholder is limited to the amount he invested in a company. In casethe company goes bankrupt his personal assets can‘t be claimed against the losses made by the company.Profit sharing: Investors enjoy unlimited participation in the earnings of the firm. Theoretically there isno limit to the returns, which an equity investor can get i.e. if the company earns multi fold profit andwants to distribute it as dividend. Of course certainly there is a risk of non-functioning/ less (or no)profitability of the company in which case the share price goes down and dividend may not be paid out.Highly liquid: Equity stocks are generally highly liquid instruments, which can be bought and sold easilyin the equity markets. Ownership stake in the company changes with every buy and sell. An investor canacquire ownership and sell off his ownership quite easily whenever he wishes to do so.Corporate control: Equity stocks come with certain rights including the voting rights to which theinvestors are entitled. Criterion of different companies for opening d-mat & trading accountsThe key criteria for selecting these accounts are:1. Your purpose/usage. In short, how frequently are you going to buy/sell and is it intraday ordelivery based. Choose the Broker whose charges are lowest according to your transactionstyle.2. Look at a complete solution and not just one individual product like a demat account. Afterall, the money in the savings account will be linked to your trading account for buying/sellingshares and the trading account will be linked to your demat account for storing the shares.Suppose you have a Savings account with Financial group 1, and the trading account withfinancial group 2 and group2 trading account does not have a partnering arrangement withgroup 1, you will be forced to open a new savings account with Group 2 itself. Similar withthe relationship between the trading account and the demat account. Usually, most non-bankbrokerages have tie-ups with the popular banks for savings bank accounts and demataccounts, but brokerages in a banking group company may have only the same bank as itspartners to be made on IPO listing when the price starts dropping after hitting a high).4. Think long term. In case you have got yourself a demat account and you have existingshares in it and you want to move to another demat account, transfer of shares is not cheap.One of the demat accounts I checked was charging Rs.50 per company scrip that is to betransferred. If I have 20 companies, it is going to cost me 50*20=Rs.1000. Others may charge
  • 35. differently, based on number of shares or amount worth or anything. Please find out what thisamount is, in case you are ever tired of useless service and you want to change the demataccount. These transfer rates are never mentioned anywhere. Buyers beware!5. Opening one of these: Bank account, Demat Account, trading account is not easy anymore.One needs address proof, identity proof, registered mobile number for instant authorisation,etc. Gone are the days when you can walk to a new city and get one of these as if you weregetting a cup of coffee in a shop. Think about the long term implications before closing anyof these.RESEARCH METHODOLOGY:The objective of the present study can be accomplished by conducting a systematic marketresearch. Market research is the systematic design,collection,analysis and reporting of dataand finding that are relevant to different marketing situations facing the company.The marketing research process that adopted in the present study consists of the followingstages.Defining the problem and research objectives-The research objectives states that what information is needed to solve the problem. Theobjective of the research is to drive the clients of the Ashika broking. And also to obtaininformation from other competitor companies regarding their client services.Developing the research plan-Once the problem is identified, the next step is to prepare a plan for getting the informationneeded for the research. The present study adopted the exploratory approach wherein therewas a need to gather large amount of information before making a conclusion.Collection and sources of data-Market research requires a two kind of data i.e., primary data and secondary data. Being afirm in the financial industry data gathering here involved usage of both primary andsecondary data though there was an extensive usage of primary data. Well-structuredquestionnaires were prepared for the clients. There were personal interview surveys forcollecting information regarding other competitor companies. The questionnaires containclose ended questions.Wherein the main objective was to get an insight into how people measure thethings.Secondary data was collected from various books and web sites. Analyse the collected information:This involves converting raw data into useful information. It involves tabulation of data,using statistical measures.Report research findings:This phase marks the culmination of the marketing research effort.The report with theresearch finding is a normal written document. The researchfinding is a formal written
  • 36. document. The research findings and personalexperience was used to proposerecommendations to develop the services of ASHIKA STOCK BROKING& develop a betterimage.LEARNING EXPERIENCE:To be a part of Ashika stock broking was the best opportunity for me to have: 1. A practical exposure of corporate world. 2. Independently handling of clients. 3. Came to know the practical problems of clients.CONCLUSIONS:In a nutshell, I have learned various practical aspects of trading in the stock market.Inhandled the queries of the new& existing clients of the company pertaining todifferent issueslike opening of accounts, trading procedures etc.In addition, I did personal meeting withclients in order to close the deals.I handled the queries of both the new & existing clients ofthe company pertaining todifferent issues like opening of accounts trading procedures etc.Ialso assisted in executing trades from the existing clients so as to get brokerage for thecompany.Thus it can be concluded thatAshika stock Broking has product diversity which is a veryimportant feature.Reference and appendix-Websites-  www.ashikagroup.com  www.indiasharehistory.com  www.bseindia.com
  • 37.  www.nseindia.com  www.mutualfunds.comNewspapers-  Times of India  Economic timesBooks-  Research Methodology (C. R. Kothari, 2ndRevised Edition)  Financial Management (I M Pandey)  Broachers and Pamphlets of Angel Broking Ltd