INDIAN FINANCIAL SYSTEM
The Indian financial system can also be broadly classified into the formal
(organized) financial system and the informal (unorganized) financial
The formal financial system comes under the purview of:
• The ministry of finance (MOF),
• Reserve Bank of India (RBI),
• Securities and Exchange Board of India (SEBI), and
• Other regulatory bodies.
The informal system consists of:
• Individual money lenders such as neighbors, relatives, landlords,
traders, and so on.
• Groups of persons operating as “funds” or “associations.”
• Partnership firms consisting of local brokers, pawnbrokers, and
• Financial intermediaries such as finance, investment, and chit-fund
INDIAN FINANCIAL SYSTEM
Formal (organized) Informal (organized)
Financial system Financial system
Capital market Money market
Equity market Derivatives
Primary market Secondary Forwards
FINANACIAL INSTRUMENTS IN THE MARKET
The changes in the regulatory framework of the capital market &
fiscal policies have also resulted in newer kinds of financial instruments
being introduced in the market. These instruments are depended on
period, interest rate, trading etc.
It represents the Proportionate ownership of the
company. The equity share holders have last right in receiving profit.
Its holders get preference in receipt of profit.
Preference share holder enjoys a preferential right of repayment in cash
of winding up of a company.
Debentures are issued by companies &
regulated under the SEBI guidelines of June 11, 1992. The debenture
holders are governed by the companies act.
Basically Bonds are issue for debt capital for
predetermined period. It is one of the cheaper instruments. Generally DFI
like IDBI, ICICI and IFCI have been raising capital for their operations.
There are mainly two types of government
securities i.e. dated securities and treasury bills. There are mainly two
authorizes governing the Government Security viz. Central government
and state government. The public debt office of the RBI performs all
functions with regard to the issue management, settlement of trade,
distribution of interest and redemption.
BSE (THE STOCK EXCHANGE OF MUMBAI)
The Stock Exchange, Mumbai, popularly known as "BSE" was
established in 1875 as "The Native Share and Stock Brokers
Association". It is the oldest one in Asia, even older than the Tokyo
Stock Exchange, which was established in 1878. It is a voluntary non-
profit making Association of Persons (AOP) and is currently engaged in
the process of converting itself into dematerialization and corporate
entity. It has evolved over the years into its present status as the premier
Stock Exchange in the country. It is the first Stock Exchange in the
Country to have obtained permanent recognition in 1956 from the Govt.
of India under the Securities Contracts (Regulation) Act, 1956.
The Exchange, while providing an efficient and transparent market
for trading in securities, debt and derivatives upholds the interests of the
investors and ensures redressal of their grievances whether against the
companies or its own member-brokers. It also strives to educate and
enlighten the investors by conducting investor education program and
making available to them necessary informative inputs.
A Governing Board having 20 directors is the apex body, which
decides the policies and regulates the affairs of the Exchange. The
Governing Board consists of 9 elected directors, who are from the
broking community (one third of them retire ever year by rotation), three
SEBI nominees, six public representatives and an Executive Director &
Chief Executive Officer and a Chief Operating Officer.
NSE (NATIONAL STOCK EXCHANGE)
NSE was incorporated in 1992 and was given recognition as a
stock exchange in April 1993. It started operations in June 1994, with
trading on the Wholesale Debt Market Segment. Subsequently it
launched the Capital Market Segment in November 1994 as a trading
platform for equities and the Futures and Options Segment in June 2000
for various derivative instruments.
NSE has been able to take the stock market to the doorsteps of the
investors. The technology has been harnessed to deliver the services to
the investors across the country at the cheapest possible cost. It provides
a nation-wide, screen-based, automated trading system, with a high
degree of transparency and equal access to investors irrespective of
geographical location. The high level of information dissemination
through on-line system has helped in integrating retail investors on a
nation-wide basis. The standards set by the exchange in terms of market
practices, Products, technology and service standards have become
industry benchmarks and are being replicated by other market
participants. Within a very short span of time, NSE has been able to
achieve all the objectives for which it was set up. It has been playing a
leading role as a change agent in transforming the Indian Capital Markets
to its present form. The Indian Capital Markets are a far cry from what
they used to be a decade ago in terms of market practices, infrastructure,
technology, risk management, clearing and settlement and investor
DEVELOPMENT OF STOCK MARKET
The origin of the stock market in India dates back to the end of the
eighteenth century when long-term negotiable securities were first issued.
The real beginning, however, occurred in the middle of the nineteenth
century, after the enactment of the Companies Act in 1985 which
introduced the feature of limited liability, and generated investor interest
in corporate securities.
The Native Share and stock Brokers’ association now known as
Bombay Stock Exchange (BSE) was formed in Bombay (now Kolkata)
(1908), and Madras (Now Chennai) (1937). In order to promote the
orderly development of the stock market, the central government
introduced a comprehensive legislation called the Securities Contracts
The Calcutta stock exchange (CSE) was the largest stock exchange
in India till the 960s. In 1961, there were 1203 listed companies across
the various stock exchanges of the country. Of these, 576 were listed o
CSE and 297 on BSE However, during the later half of the 1960s, the
relative importance of CSE declined while that of BSE increased sharply.
Decision to Placing Order
Funds or Transaction Trade
trades Clearing of
A person holding assets (Securities/Funds), either to meet his
liquidity needs or to reshuffle his holdings in response to changes in his
perception about risk and return of the assets, decides to buy or sell the
securities. He selects a broker and instructs him to place buy/sell order
on an exchange.
The order is converted to a trade as soon as it finds a matching sell/
buy order. At the end of the trade cycle, the trades are netted to determine
the obligations of the trading member’s securities/funds as per settlement
cycle. Buyer/seller delivers funds/ securities and receives securities/funds
and acquires ownership of the securities.
1. ANGEL BROKING LIMITED
2. S S KANTILAL ISHWARLAL SECURITIES PVT LTD.
3. ICICI WEB TRADE LTD. (www.icicidirect.com)
4. 5 PAISA.COM (www.5paisa.com)
5. KOTAK SECURITIES LTD. (www.kotakstreet.com)
6. INDIABULLS (www.indiabulls.com)
7. MOTILAL OSWAL SECURITIES LTD.
8. HDFC SECURITIES LTD. (www.hdfcsec.com)
9. UTI SECURITIES LTD.
Square Banks Associated
ng A/ Demat Delivery
Angel Broking Ltd. 460 0.30 0.06 HDFC, ICICI
Sharekhan 750 NIL 0.50 0.10 OBC, IDBI &
ICICI Direct 750 NIL 0.75 0.18 ICICI Bank
Indiabulls 750 250 0.40 0.10 N.A.
5 paisa 800 NIL 0.20 0.05 OBC, UTI &
Kotak Bank &
Kotak Street 500 N.A. 0.59 0.06
HDFC & Other 4
HDFC Securities 700 NIL 0.50 0.15
INDUSTRY ANALYSIS USING PORTER’S 5 FORCES
UTI Securities Ltd.
Refco Group Ltd.
IDBI Capital Mkt. Services Ltd.
Web maintainers Small Investors
NSCL ICICI Web Trade Ltd Franchise/Business
CSDL 5paisa.com Partners
NSE Kotak Securities Ltd HNI’s
BSE India Bulls MF Companies
MCX Motilal Oswal Securities Ltd HUF
NCDEX HDFC Securities Ltd Institutional
Marwadi Finance Ltd Investors
Angel Broking Ltd.
The Angel Group has emerged as one of the top 5 retail stock
broking houses in india, having memberships on BSE, NSE and the two
leading commodity exchanges in the country i.e. NCDEX and MCX.
Angel Broking Ltd is also registered as a depository participant with
The group is promoted by Mr. Dinesh Thakkar, who started this
enterprise as a small sub-broker in 1987 with staff strength of 3
personnel. As on date, the group is managed by a team of 150
professionals & 700 support staff and a nation wide network
comprising 40 branches, over 2000+ sub brokers and business associates
and 6000 terminals which cater to the requirements of more than 1 lacs
S. S. KANTILAL ISHWARLAL SECURITIES
PVT. LTD. (SHAREKHAN. COM)
Sharekhan, India’s leading stock broker is the retail arm of SSKI,
and offers you depository services and trade execution facilities for
equities, derivatives and commodities backed with investment advice
tempered by decades of broking experience. A research and analysis team
is constantly working to track performance and trends. That’s why
Sharekhan has the trading products, which are having one of the highest
success rates in the industry. Sharekhan is having 240 share shops in 110
cities; the largest chain of retail share shops in India is of Sharekhan.
In future, Sharekhan is planning to enter in Mutual funds,
Insurance sector and banking sector to expand beyond the market
currently covered by it. And it has started MF (Mutual Funds) on priority
basis but wants to grow in it.
ICICI WEB TRADE LTD. (ICICIdirect.com)
ICICIdirect.com was the first entrant into e-broking.
ICICdirect.com provides the 3-in-1 to the users which ties in their saving
bank account and their Demat account to their brokerage account
electronically. This integration ensures that money is transferred to/from
their bank account and the shares are transferred from/to their Demat
account automatically without writing any cheques or transfer
instructions while carrying out their trades in shares.
ICICIdirect.com has the option of trading in shares in cash, margin
or spot segments. An investor can also invest in 14 Mutual Funds
(Prudential ICICI MF, Franklin Templeton India MF, Alliance Capital
MF, JM MF, Birla Sun Life MF, Sundaram MF, IL&FS MF, Principal
MF, HDFC MF, Standard Chartered MF, Reliance Capital MF, Kotak
Mahindra MF, TATA MF and DSP MERRILL LYNCH MF) through
their trading account.
ICICIdirect.com doesn’t provide the facility of trading in a traditional
5paisa is the trade name of India Infoline Securities Private
Limited (5paisa), member of National Stock Exchange and The Stock
Exchange, Mumbai. 5paisa is a wholly owned subsidiary of India Infoline
Ltd, India’s leading and most popular finance and investment portal.
5paisa has emerged as one of leading players in e-broking space in India.
The company’s brokerage is one of the lowest in the industry. It
also provides the research on commodities. Investors can benefit from its
analysis and advice available at the click of the mouse.
India Infoline was founded by a group of professionals in 1995. Its
institutional investors include Intel Capital, one of the leading technology
companies in the world promoted by the UK government, ICICI, TDA
and Reeshanar. The company offers a slew of products such as stock and
derivatives broking, commodities broking and mutual funds.
KOTAK SECURITIES LIMITED
Kotak Securities Ltd., a strategic joint venture between Kotak
Mahindra Bank and Goldman Sachs (holding 25% - one of the world’s
leading investment banks and brokerage firms) is India’s leading stock
broking house with a market share of 5 - 6 %. Kotak Securities Ltd. has
been the largest in IPO distribution - It was ranked number One in
2003-04 as Book Running Lead Managers in public equity offerings by
PRIME Database. It has also won the Best Equity House Award from
Finance Asia - April2004.
Kotak Securities Ltd is also a depository participant with National
Securities DepositoryLimited (NSDL) and Central Depository Services
Limited (CDSL) providing dual benefit services wherein the investors
can use the brokerage services of the company for executing the
transactions and the depository services for settling them. The company
has 42 branches servicing around 1, 00,000 customers. Kotakstreet.com
the online division of Kotak Securities Limited offers Internet Broking
services and also online IPO and Mutual Fund Investments.
Indiabulls is India's leading retail financial services company with
77 locations spread across 64 cities. Its size and strong balance sheet
allows providing varied products and services at very attractive prices,
our over 750 Client Relationship Managers are dedicated to serving your
unique needs. Indiabulls is lead by a highly regarded management team
that has invested crores of rupees into a world class Infrastructure that
provides real-time service & 24/7 access to all information and products.
The Indiabulls Professional Network offers real-time prices, detailed
data and news, intelligent analytics, and electronic trading capabilities,
right at your finger-tips. This powerful technology is complemented by
our knowledgeable and customer focused Relationship Managers.
Indiabulls offers a full range of financial services and products
ranging from Equities, Derivatives, Demat services and Insurance to
enhance wealth and to achieve the financial goals.
MOTILAL OSWAL SECURITIES LTD.
One of the top-3 stock-broking houses in India, with a dominant
position in both institutional and retail broking, MOSt is amongst the
best-capitalized firms in the broking industry in terms of net worth. MOSt
was founded in 1987 as a small sub-broking unit, with just two people
running the show. Focus on customer-first-attitude, ethical and
transparent business practices, respect for professionalism, research-
based value investing and implementation of cutting-edge technology
have enabled it to blossom into a thousand-member team.
The institutional business unit has relationships with several
leading foreign institutional investors (FIIs) in the US, UK, Hong Kong
and Singapore. In a recent media report MOSt was rated as one of the
top-10 brokers in terms of business transacted for FIIs.
HDFC SECURITIES LTD (HDFCsec)
HDFCsec is a brand brought to you by HDFC Securities Ltd,
which has been promoted by the HDFC Bank & HDFC with the objective
of providing the diverse customer base of the HDFC Group and other
investors a capability to transact in the Stock Exchanges & other financial
market transactions. The services comprise online buying and selling of
equity shares on the National Stock Exchange (NSE). Buying and selling
of select corporate debt and government securities on the NSE would be
introduced in a subsequent phase. In a few months, they will also start
offering the following online trading services on the BSE and NSE:
1. Buying and selling of shares on the BSE
2. Arbitrage between NSE & BSE
3. Trading in Derivatives on the NSE
4. Margin trading products.
UTI SECURITIES LTD.: (UTISEL)
UTI Securities Ltd was incorporated on June 24, 1994 by Unit
Trust of India as a 100% subsidiary and on the repealing of the UTI Act,
the capital is now held by the Administrator of the Specified Undertaking
of Unit Trust of India (ASUUTI). UTI Securities has been working as an
independent professional entity for providing financial intermediary and
advisory services to its corporate and retail clientele.
The Company has presence in major cities with 20 branches and 50
franchisees to service a wide range of clients. The company has also
invested in the joint-venture company with Standard Chartered UTI
Securities (P) Ltd. that is engaged in primary dealership and
Government securities. The company is very soon going to start
Commodity Trading through its subsidiary, USEc Commodities Ltd,
which provides facility of commodity trading on NCDEX and MCX.
IDBI Capital Market Services Ltd.
IDBI Capital is a leading Indian securities firm offering a complete
suite of products and services to individual, institutional and corporate
clients.IDBI Capital Market Services Ltd. (IDBI Capital), a wholly
owned subsidiary of Industrial Development Bank of India (IDBI), is a
leading Indian securities firm, offering a complete suite of products and
services to individual, institutional and corporate clients. The services
include fixed income trading, equities brokerage, debt and equity
derivatives, research, private placements, depository services, portfolio
March 1995 - Commenced Equity Broking on NSE CM segment
October 1996 - Commenced Debt Broking on NSE WDM segment
December 1996 - Started operations as a Depository Participant
1996 - Started to act as Arranger to Privately Placed Bond issues
April 1998 - Commenced operations as a Portfolio Manager
February 1999 - Acquired membership of BSE, Mumbai
November 1999 - Started operations as a Primary Dealer
June 2000 - Acquired Derivatives memberships of BSE and NSE
October 2002- Commenced trading in Interest Rate Swap
Stock exchanges to some extent play an important
role as indicators, reflecting the performance of the
country’s economic state of health. Stock market is a
place where securities are bought and sold. It is exposed
to a high degree of volatility; prices fluctuate within
m i n u t e s a n d a r e d e t e r m i n e d b y t h e d e m a n d a n d s u p p l y of
s t o c k s a t a g i v e n t i m e . S t o c k b r o k er s a r e t h e o n e s w h o b u y
and sell securities on behalf of i n d i vi d u a l s and
institutions for some commission.
The Securities and Exchange Board of India (SEBI)
is the authorized body, which regulates the operations of
stock exchanges, banks and other financial institutions.
The past performances in the capital markets especially
the securities scam by Harshad Mehta has led to
t i g h t e n i n g o f t h e o p e r a t i o n s b y S E BI . I n a d d i t i o n t h e
international trading and investment exposure has made it
imperative to better operational efficiency. With the view
to improve, discipline and bring greater transparency in
this sector, constant efforts are being made and to a
certain extent improvements have been made.
HISTORY OF THE BROKING
Indian Stock Markets are one of the oldest in Asia. Its history dates back
to nearly 200 years ago. The earliest records of security dealings in India
are meager and obscure.
By 1830's business on corporate stocks and shares in Bank and
Cotton presses took place in Bombay. Though the trading list was
broader in 1839, there were only half a dozen brokers recognized by
banks and merchants during 1840 and 1850. The 1850's witnessed a rapid
development of commercial enterprise and brokerage business attracted
many men into the field and by 1860 the number of brokers increased
1860-61 the American Civil War broke out and cotton supply
from United States of Europe was stopped; thus, the 'Share Mania' in
India begun. The number of brokers increased to about 200 to 250.
However, at the end of the American Civil War, in 1865, a disastrous
slump began (for example, Bank of Bombay Share which had touched Rs
2850 could only be sold at Rs. 87). At the end of the American Civil
War, the brokers who thrived out of Civil War in 1874, found a place in a
street (now appropriately called as Dalal Street) where they would
conveniently assemble and transact business.
In 1887, they formally established in Bombay, the
" N a t i v e S h a r e a n d S t o c k B r o k e r s ' A s s o c i a t i o n " ( w hi c h i s
alternatively known as "The Stock Exchange"). In 1895,
the Stock Exchange acquired a premise in the same street
and it was inaugurated in 1899. Thus, the Stock Exchange
at Bombay was consolidated.
T h u s i n t h e s a m e w a y , g r a d u a l l y w i t h t h e p a s s a g e of
time number of exchanges were increased and at currently
it reached to the figure of 24 stock exchanges.
In a short span of 18 years since inception, The
A n g e l G r o u p h a s e m e r g e d a o n e of t h e t o p 5 r e t a i l s t o c k
broking houses in India, having memberships on BSE,
NSE and the two leading commodity exchanges in the
country i.e. NCDEX and MCX. Angel Broking Ltd is also
r e g i s t e r e d a s a d e p o s i t o r y p ar t i c i p a n t w i t h C D S L . I t i s t h e
o n l y 1 0 0 % r e t a i l s t o c k b r o k i n g h o u s e o f f e r i n g a g a m u t of
retail centric services like Research, Investment Advisory,
and Wealth Management Services-Broking & Commodities
to individual investor.
The group is promoted by Mr. Dinesh Thakkar who
s t a r t e d t h i s b u s i n e s s a s a s u b - b r o k e r i n 1 9 8 7 w i t h a t e a m of
3.and today professionally managed by a team of 1871+
d i r e c t e m p l o y e e s . I t h a s a n a t i o n w i d e n e t w o r k c o m pr i s i n g
12 Regional Centers, 60 branches, 2408+ registered sub
brokers and business associates and 6227+ active trading
t e r m i n a l s w h i c h c a t e r t o t h e r e q u i r e m e n t s o f 2 0 5 6 1 0+ r e t a i l
At Angel, It habitually generate value added features
without the cost burden being passed onto the clients as we
strongly believe that better understanding of client’s needs
a n d w a n t s i s o u r t o p p r i or i t y . O u r e- b r o k i n g f a c i l i t y i s o n e
s u c h e f f o r t , w h i c h g i v e s y o u a p l a t f or m t o a c c e s s s t a t e of t h e
art trading facility at the click of a button.
Best Value For Money
To Investors Through
Trading / Investments Strategies,
OUR BUSINESS PHILOSOPHY
E t h i c a l P r a c t i c e s & T r a n s p a r e n c y I n A l l O ur D e a l i n g
Customer Interest Above Our Own
A l w a y s D e l i v er W h a t W e P r o m i s e
Effective Cost Management
OUR QUALITY ASSURANCE POLICY
We Are Committed To Being The Leader
I n P r o v i d i n g W o r l d C l a s s P r o d u ct & S e r v i c e s
W h i c h E x c e e d T h e E x p e c t at i o n O f O u r C u s t om e r s
Achieved By Team Work And
A Process Of Continuous Improvement
Andheri (west) Bandra(west)
Malad(west, east) Mulund(west)
Santacruz(west) Vilen parle(west)
GOALS & OBJECTIVES
–State specific measurable objectives
–State market share objectives
–State revenue/profitability objectives
High-level financial plan that defines financial model, pricing
assumptions, and reviews yearly expected sales and profits for the
next three years.
Use several slides to cover this material appropriately
–Financial, distribution, promotion, etc
–Products/services/technology required to be purchased outside
The main mission statement of angel broking ltd is to be on top in and
around Rajkot and Saurashtra peninsula with the help of retail, bulk and
past business within three years.
For FY 06-07 focus will be on Bulk business from existing sub-brokers
of competitors by giving those competitive pricing, better connectivity
and Post trading Back-up software in post centralized and direct billing
To provide best value for money to investors through innovative products
trading investments strategies state of the art technology and personalized
This firm is working with philosophy that ethical values and transparency
should be followed and customers interest should be given preference and
deliver it what angel had promise to provide with effective cost
Top quality research & portfolio advisory services for equities
Retail focused research products
Robust internet trading facility
Commodities research & broking services
Depository services through CDSL
Web based 24 x 7 back office software
Good understanding of the sub-broker and retail customer needs
Professional work culture with a personal touch
Streaming quotes & real time charts for bse /nse [cash /
Single connectivity and speedy execution of trades.
Private v-sat network for remote areas.
Online technical support & help desk.
UNIQUENESS OF ANGEL
100% retail focus
BSE / NSE cash, F&O & commodities on a single screen
flexible margins/ exposure limits
Personalized services through centralized help desk and 25
cost effective technology
Major players are Angel, SSKI, MOST, Karvi, Anagram, India Bull,
Kotak in retail segment.
Marwadi and Ajay Natwarlal in sub-broker networking segment.
Market: Retail _SSKI and MOST are considered successful among
rest mainly because of good research, aggressive pricing, Margin
Funding and spacious and well ambient office.
VIEW OF DIFFERENT DEPARTMENTS
TRADING DEPARTMENT 29
ACCOUNT OPENING FORM 30
POST –TRADING 33
PAYIN AND PAYOUT PROCESS 35
DP DEPARTMENT 36
DEPOSITORY-AN ORGANISATION 36
BRIEF HISTORY OF DEPOSITORY 38
PARTICIPANT IN INDIA
ROLE OF DP 40
ACCOUNT OPENING 42
DEMATERIALIZATION SECURITY 45
PLEDGE /HYPOTHECATION 46
VIEW OF DIFFERENT DEPARTMENTS
Same as all the firms’ angel broking ltd has different department. It
had mainly three departments which are as follows:
Back office department
(a) TRADING DEPARTMENT
Angel is one of the broker who is acting as wholesalers and as a broker it
is the duty of it to provide service of collecting funds and securities from
the investors and send it to clearing house respectively for this an account
is to be opened ie trading account. According to SEBI investor has to
open trading account, he can open an account in any depository but
investor should not be partnership firm or proprietorship firm.
Trading department is again divided into three parts
(1) PRE-TRADING :-
Any person who wants to open an trading accounts first of all pre-trading
activity is done which include:
Account opening Form
Account opening procedure
I. First client will ask for opening trading account
II. The Angel will give proof details and client will have to fill up
form and submit to Angel with documents required
III. Collection of form from the client
IV. Checking of the form
V. Scanning of the form
VI. Then this form will be dispatch to H.O
VII. Angel branch will have Collection of code by email or manually
VIII. Now inform client or sub broker through phone or email about
IX. Now client will be able to trade
I. First client will give written request for closing an account
II. Then this request is forwarded to H.O
III. At last H.O will inform branch that account has been closed whole
procedure about closing will be done at H.O
IV. Angel will inform client about closing of account
Cash market Minimum Rs 5000
Intra-day Rs 10000
Delivery Rs 5000 (rare case)
For one segment 50,000 cash or share and for
commodity 1,00,000 and for all
For all five segments 2,00,000 if client wants Vast
which include installation
,transportation charges etc
Part-A Demat-(photo proof)
Part-B (Residence proof)
Trading Account proof
Following are the proof required for opening trading account.
Client master copy (DP proof)
Pan card for photo proof/form-60
Any one from Part-A
Any one from Part-B
(2) TRADING :-
After pre-trading next comes trading which include:
Dealing room is the rooms where dealing of different securities are done
(3) POST TRADING :-
pay in and pay out process
After completion of trading the further process is done through this
department. Mainly it handles two processes which are known as pay in
and pay out process. Further description is given below.
When transaction is done between the two members of same DP then it is
called internal payout process, but it can be known only after 4 o’clock
when trading gets over. It can be known that whether the transaction is
done internally or not. Otherwise all the transactions are done thorough
exchange only. Now if the situation arises in which one of the member of
DP has sold a definite quantity of shares, but against which no one has
purchased the same amount of quantity of shares belonging to same
company then the whole lot will go to the exchange. On the other hand if
one of the parties has bought comparatively less quantity than sold by
another party then it is called shortfall of shares.
Now let us understand the above concept with the help of a practical
example. Suppose, one of the members of Angel in RAJKOT has sold
800 shares of Reliance LTD., but against which member of Angel at
Mumbai branch has purchased only 300 shares of the same company then
it is called SHORTFALL. Now, after the closing of trading activity (i.e.
after 4 o’clock).
Exchange will prepare a shortfall report & this will be directly sent to
H.O. Now, department will prepare a summary from the report. After that
if DP has access then dealing will be done internally otherwise auction
will be done by exchange in which exchange will purchase or sell
shortfall of shares from the market. Payout process mainly indicates
access amount to be paid by DP i.e. when purchase of share is
comparatively higher then selling.
In the same way Angel H.O will prepare bill of clients name and this will
be sended to respective branches to different places and now branches
would be dispatching to their respective clients.
Pay In Process
Now if we look from the other side the same concept, then it is called
PAY IN PROCESS. In this process if selling is done comparatively
higher then purchase, then DP will earn i.e. DP will get relatively more
amount against which it has to pay less amount. In both the transaction
i.e. in paying & payout the payment will be done thorough checks only.
Contract note is a confirmation of trades done on a particular day for and
on behalf of a client. Angel shall issue a contract note to his client for
trades (purchase/sale of securities) executed with all relevant details as
required therein to be filled in (refer to SEBI circular no. SMD/SED/CIR/
23321 dated June 8, 2005). A contract note shall be issued to a client
within 24 hours of the execution of the contract duly signed by the TM or
his authorized signatory or client attorney.
Depository- An Organization
A depository is an organization where the securities of investors
are held in electronic form. Investors open an account in the depository
system through a Depository Participant (DEPOSITORY
PARTICIPANTS) and hold securities in that account. There are two
depositories in India which are National Securities Depository Ltd
(NSDL) and Central Depository Service Ltd (CDSL).
Depository system is quite similar to a banking system. If an investor
wants to utilize the service offered by a depository, he/she has to open an
account with the depository through a DEPOSITORY PARTICIPANTS.
This can be compare to the opening of an account with any of the
branches of a bank in order to utilize the services of the bank. Holding
securities in Depository is now a normal practice across the world. All
depositories operate under country’s specific rules and regulations to
assure safety, liquidity and right/ liability.
A depository may be defined as facilities of holding securities in
electronic form that means without holding any certificates in physical
form and which subsequently enable securities transaction to be process
by electronic book entry system, without movement of papers.
A Depository facilitates holding of securities in the electronic form and
enables securities transactions to be processed by book entry by a
Depository Participant (DP), who as an agent of the depository, offers
depository services to investors. According to SEBI guidelines, financial
institutions, banks, custodians, stockbrokers, etc. are eligible to act as
The investor who is known as Beneficial owner (BO) has to open a
Demat account through any DP for dematerialization of his holdings and
transferring securities. Angel is having DP of CDSL where the balances
in the investors account recorded and maintained with CDSL can be
obtained through the DP. The DP is required to provide the investor, at
regular intervals, a statement of account which gives the details of the
securities holdings and transactions.
The depository system has effectively eliminated paper-based certificates
which were prone to be fake, forged, counterfeit resulting in bad
deliveries. CDSL offers an efficient and instantaneous transfer of
BRIEF HISTORY OF DEPOSITORY PARTICIPANT
Although India had a vibrant capital market which is more than a
century old. The paper based settlement or trades caused substantial
problems like bad delivery and delayed transfer of title till recently. The
enactment of depositories act in august 1996 paved the way for
establishment of NATIONAL SECURITIES DEPOSITORY LIMITED,
The first depository in India. This depository promoted by institution of
national stature responsible for economic development of the country has
since established a national infrastructure of international standards that
handle most of the trading and settlement in dematerialized form in India
NATIONAL SECURITIES DEPOSITORY LIMITED was
promoted by UTI, IDBI and NSE. It started providing depository services
in November 1996. Afterwards, CENTRAL DEPOSITORY SERVICE
LIMITED flagged of its operation in July 1999. The CENTRAL
DEPOSITORY SERVICE LIMITED was promoted by BSE jointly with
leading banks such as SBI, BOI, BOB, HDFC, Standard Chartered,
Union Bank of India & Centurion Bank.
Trading in dematerialization share commenced on NSE in
December 1996 on BSE in December 1997. In January 1998 compulsory
Demat trading for retail investor started for selected scrips. Thus scrips in
compulsory demat trading included the once with highest market
capitaliasation and most traded scrips. This step led to phenomenon
growth of the depository environment in Indian capital market.
Until CENTRAL DEPOSITORY SERVICE LIMITED
commenced its operations it was a one man show handled by
DEPOSITORY PARTICIPANTS of NATIONAL SECURITIES
NATIONAL SECURITIES DEPOSITORY LIMITED had there
fore cover a large chunk of market before CENTRAL DEPOSITORY
SERVICE LIMITED came into picture and it has remained the largest
depository till date.
Investors were opening the account in NATIONAL SECURITIES
DEPOSITORY LIMITED and dematerializing there shares in the first
phase. That was a booming period for the depository industry. Thus, in
the initial years of the industry there was only one depository and the
competition was between DEPOSITORY PARTICIPANTS only. The
service was newly launch and SEBI was increasing the scope and
compulsion by way of introducing more and more scrip in the least of
compulsory demats trading.
A Depository is an organization firm to provide electronic
depository facilities for securities traded. Securities are then held in
the electronic form through the medium of DP. The NSDL is the
first depository in India. The functions of NSDL are regulated by
the Securities and Exchange Board of India (SEBI).
The Depository is not just another custodian. The Depository can
legally transfer beneficial ownership, which a custodian can not.
The chief objective of a depository is to reduce settlement risk by
minimizing the paperwork involved in trading, settling and
To utilize the services offered by a depository, you must open an
account with the depository through a DP. The DPs are the link
between the shareholders and the company and NSDL.
Depending on the DP, there may or may not be an opening account
fee. The DPs levy fees towards transaction and custody.
Banks, financial institutions, custodians and stock brokers can
become DPs subject to their meeting certain requirements
prescribe by NSDL and SEBI. NSDL publishes the list of DPs
registered with them from time to time.
The DP will provide you with a passbook or statement of account
periodically to inform you on your holdings.
You can even have a zero balance in your account.
BENEFITS OF OPENING AN ACCOUNT WITH CDSL
The unique centralized database of CDSL enables DPs in
Debit/Credit securities instantaneously to the Beneficial Owner’s
account, thereby avoiding any transit position.
CDSL’s unique client ID number ensures debit/credit of securities
only to the intended account as the system does not accept a
transaction, where account number is keyed in incorrectly.
CDSL offers facilities to the Clearing House. Clearing Corporation
under which securities sold/purchased by any BO on BSF can be
directly delivered from/ received in the BO account, without
routing them through the broker’s pool account.
CDSL does not collect any custody fees from DPs, thus, BOs can
expect a lower charge in respect of securities held in CDSL
accounts. The transaction cost for settlement of securities through
CDSL as lower in most cases.
To avail the various services offered by CDSL an investor or a
broker or an approved intermediary has to open a CDSL depository
account. Depository accounts are of three types:
• BENEFICIARY ACCOUNT:
An investor or a broker who wants to hold shares
on dematerialized form and undertake scrips less trading must have
depository account called Beneficiary Owner account (BO) with a DP
of his choice.
• CLEARING MEMBER ACCOUNT:
Member brokers of the stock exchange which have
established electronic connectivity with CDSL need to open a clearing
member account with a DP of his choice to clear and settle trades in
the demat form. This account is meant only to transfer shares and
receives shares for the clearing corporation/house and hence, the
member broker does not have any ownership rights over the shares
running held in such an account.
• INTERMIDEARY ACCOUNT:
Any person desiring to act as an approved
intermediary account with any DP office choice. An intermediary
account may be open with the DP only after the intermediary has
obtained registration from the securities and Exchange board of India.
And with the prior approval of the CDSL. This account is meant only
to deposit the securities receive from the lender and lend them to the
borrower under stock landing and borrowing scheme. The
intermediary does not have any ownership rights over the shares held
in such account.
PROCEDURE FOR OPENING AN ACCOUNT :-
An investor who wants to hold securities in the electronic form in a
depository system should open an account with a participant with
The participant will make available the relevant account opening
form (depending on whether the client is a retailer investor or
corporate client or clearing member) and specify the relevant list of
documents regarding references that should be submitted along
with the form. It will also give a copy of the relevant agreement, to
be entered with the client, in duplicate.
The client will submit the duly filled in account opening form. It
should also furnish such documents regarding references, as
specified electronic form in by the participant, along with the
account opening form.
The Angel will verify that the account opening form is duly filled
in. it will also verify the enclosed documents, if any. Incomplete
forms will be forwarded to the client for rectification.
The authorized signatories are enclosed.
In case the documents are not proper, the form will rejected and
intimate the client of the same, stating the reasons for doing so.
The copy of the agreement submitted by the client is destroyed.
If the form is in order, the Angel will accept the same and give an
acknowledgment slip duly signed and stamped, to the client. The
Angel will execute the agreement and give a copy of it to the
After completion of all documentation, the Angel will send to H.O
then enter the client details as mentioned in the account opening
form in the DPM screen provided for the purpose. After entering
client details in the system, a client account number will be
generated by the DPM. H.O will send to Angel
The Angel will give a copy of the report listing the client details
captured in the DPM database to the client. The report will be
generated by the DPM.
Finally Angel dispatch, Demat account kit to the client by courier.
DEMET REQUISITION FORM (DRF)
Now we know that all the transaction are done through electronic
form for this investors has to convert all the physical certificates into
electronic form for this process is to be made for dematerialization of the
DEMATERIALIZATION OF SECURITY
According to the Depositories Act 1996, an investor has the option
to hold shares either in physical or electronic form. Now ever, SEBI has
notified that settlement of trade in almost all listed securities should take
the Demat mode. Although, trades up to 500 shares can settled in
physical form, physical settlement is virtually not taking place for
apprehension of bad delivery on account of mismatch of signatures,
forgery of signature, fake certificate, etc.
Before you start trading of your security using Demat account you
dematerialize the certificate. Dematerialize means converting security in
electronic form from physical form.
Only those security can be Dematerialized whose owner company
has registered itself for CDSL service. Shareholder can request its owner
company to register itself with CDSL if it is not registered only after that
security can be dematerialized
Procedure for dematerialization
If client is having physical certificate and wants to convert then
request is to give to angel for dematerialization
Then this request is send to H.O
H.O will stamp this request and send this request to related R&T
R&T Agent will on receiving the physical documents and the
electronic request verifies and checks them
The DP issues a statement of transaction to the client
Then angel will inform to client
Major benefit of the Demat account and holding security in Demat
form is that you can put this certificate on pledge and you will get loan on
it. If you have a demat account with RNSB bank then you will get loan
either form this bank or you will get it form some other institutes. The
person who applied for the loan is called ledger and one need to have
Demat account with CDSL. Pledge puts once security under the pledge it
can not use for other purpose. This security pledged are moved from
‘Free Balance’ to ‘Pledged Balance’ account.
PRODUCTS OF THE ANGEL
Trading in securities / commodities using the internet platform is a
convenient option. We provide you an opportunity to trade on BSE / NSE
( Cash and F & O ), NCDEX and MCX from the comfort of your home
Our internet trading platform gives you state-of-the-art trading facility,
order and trade confirmation, e- contracts and 24 X 7 on-line web
enabled back-office system at the click of a button.
ANGEL ANGEL TRADE ANGEL
DIET tTRADE Offline ANYWHER
ANGEL DIET :-
o Application based ideal for traders
o User friendly & sample navigation
o Robust & speedier execution of trade
o BSE,NSE, F & O, MCX & NCDEX
ANGEL TRADE :-
o Browser based for investors
o No installation required
o Advantages of mobility
o BSE, NSE, F & O, MCX & NCDEX
ANGEL ANYWHERE :-
o Application based ideal for traders using technical
o Intra-day / Historical charts with various indicators
o BSE, NSE-Cash & Derivatives
Angel E-Broking Products
Angel Trade Angel Diet
Browser based for Application based
ideal for traders
Investors No ideal for traders
User friendly &
installation required using technical tools
Advantage of mobility intra-day / historical
Robust & speedier
Trading as simple as charts with various
execution of trade
internet surfing indicators BSE,
BSE,NSE, derivatives NSE- Cash &
& commodities. Derivatives.
In a volatile market it is very difficult for an investor to pick up
value stocks which will give decent returns in the long run.
We at ANGEL GOLD realize your need for a professional
financial advisor and hence are here to assist you in making wise and
Features of Angel Gold :
A premium service for clients who need professional guidance on
long term investments.
Minimum fund / portfolio of Rs. 1 lac and maximum of Rs. 4 lac
eligible for Angel Gold.
Director- Research, Mr.Lalit Thakkar along with 12 analysts to
design and monitor portfolios.
Appropriate risk profiling before taking investments decisions.
Periodic group meeting and seminars in branches.
Monthly Newsletter from the desk of “Angel Gold”.
Browser based back-office software.
TRADING IN NSE, BSE AND DERIVATIVES
ABOUT THE DERRIVATIVES :-
Keeping in view the experience of even strong and developed
economies the world over, it is no denying the fact that financial market
is extremely volatile by nature. Indian financial market is not an
exception to this phenomenon. The attendant risk arising out of the
volatility and complexity of the financial market is an important concern
for financial analysts. As a result, the logical need is for those financial
instruments which allow fund managers to better manage or reduce these
Out of various risks, Credit Risk and Interest Rate risk are the two
core risks, which are commonly acknowledged by various categories of
Financial Institutions particularly banks. Effective management of these
core risks is a critical factor in comprehensive risk management and is
essential for the long-term financial health of business organizations,
With gradual liberalization of Indian financial system and the
growing integration among markets, the risks associated with operations
of banks and All India Financial Institutions have become increasingly
complex, requiring strategic management. In keeping with spirit of the
guidelines on Asset-Liability Management (ALM) systems and on
integrated risk management systems, it is very much required to design
risk management architecture, taking into consideration the size,
complexity of business, risk philosophy, market perception and the level
of capital. In addition, fine-tuning the risk management system to deal
with credit and market risk is also the need of the hour.
For enabling the banks and the financial institutions, among others,
to manage their risk effectively, the concept of derivatives comes into
The emergence of the market for derivative products, most notably
forwards, futures and options, can be traced back to the willingness of
risk-averse economic agents to guard themselves against uncertainties
arising out of fluctuations in asset prices. By their very nature, the
financial markets are marked by a very high degree of volatility.
Through the use of derivative products, it is possible to partially or fully
transfer price risks by locking–in asset prices. As instruments of risk
management, these generally do not influence the fluctuations in the
underlying asset prices. However, by locking-in asset prices, derivative
products minimize the impact of fluctuations in asset prices on the
profitability and cash flow situation of risk-averse investors.
MEANING OF DERIVATIVES:-
A derivative is a financial instrument, which derives its value from
some other financial price. This “other financial price” is called the
underlying. The underlying asset can be equity, FOREX, commodity or
any other asset.
A wheat farmer may wish to contract to sell his harvest at a future
date to eliminate the risk of a change in prices by that date. The price for
such a contract would obviously depend upon the current spot price of
wheat. Such a transaction could take place on a wheat forward market.
Here, the wheat forward is the “derivative” and wheat on the spot market
is “the underlying”. The terms “derivative contract”, “derivative
product”, or “derivative” are used interchangeably. The most important
derivatives are futures and options.
A very simple example of derivatives is curd, which is derivative
of milk. The price of curd depends upon the price of milk, which in turn
depends upon the demand, and supply of milk.
See it this way. American depository receipts/ global depository
receipts of ICICI, Satyam and Infosys traded on stock exchanges in the
USA and England have their own values? No. They draw their price from
the underlying shares traded in India.
Consider how the value of mutual fund units changes on a day-to-
day basis. Don’t mutual fund units draw their value from the value of the
portfolio of securities under the schemes? Aren’t these examples of
derivatives? Yes, these are. And you know what; these examples prove
that derivatives are not so new to us. Nifty options and futures, Reliance
futures and options, Satyam futures and options etc are all examples of
derivatives. Futures and options are the most common and popular
form of derivatives.
HISTORY OF DERIVATIVES:-
The derivatives markets has existed for centuries as a result of the
need for both users and producers of natural resources to hedge against
price fluctuations in the underlying commodities. India has been trading
derivatives contracts in silver, gold, spices, coffee, cotton and oil etc for
decades in the gray market. Trading derivatives contracts in organized
market was legal before Morarji Desai’s government banned forward
contracts. Derivatives on stocks were traded in the form of “Teji” and
“Mandi” in unorganized markets. Recently futures contract in various
commodities was allowed to trade on exchanges. In June 2000, NSE and
BSE started trading in futures on Sensex and Nifty.
Options trading on Sensex and Nifty commenced in June 2001. Very
soon thereafter trading began on options and futures in 31
prominent stocks in the month of July and November respectively. The
market lots keeps on changing from time to time. The minimum quantity
you can trade in is one market lot.
DERIVATIVES: AN INDIAN CONTEXT:-
In Indian context, the intensity of derivatives usage by institutional
investors (viz. Banks, Financial Institution; Mutual Funds, Foreign
Institutional Investors, Life and General Insurers) depend on their ability
and willingness to use derivatives for one or more of the following
Risk containment: using derivatives for hedging and risk
Risk Trading/Market Making: Running derivatives trading book
for profits and arbitrage; and/or
Covered Intermediation: On-balance-sheet derivatives
intermediation for client transaction, without retaining any net-risk
on the balance sheet (except credit risks).
TYPES OF DERIVATIVES
Derivative as a term conjures up visions of complex numeric
calculations, speculative dealings and comes across as an instrument
which is the prerogative of a few ‘smart finance professionals’. In reality
it is not so. In fact, a derivative transaction helps cover risk, which would
arise on the trading of securities on which the derivative is based and a
small investor can benefit immensely.
“A derivative security can be defined as a security whose value
depends on the values of other underlying variables.” Very often, the
variables underlying the derivative securities are the prices of traded
Derivatives and futures are basically of 3 types:
Forwards and Futures
Options Futures Swaps Forwards
Put Call Interest Rate Currency
VALUE ADDED SERVICES
Angel provides various services which increases the value of the
firm and provides customer satisfaction through these services. These
services helps customer in trading and makes the task easy, in this firm
will be providing services for this special person are appointed for
specific purpose who would be providing that services only .Thus
personalized concentration is given to all the clients.
Following are the services offered by Angel
RESEARCH REPORTS &
Daily / weekly reports
Company provide daily and weekly report to the clients so that clients on
the basis of this report can so for the market watch of the different
Company/ sector reports
Here in the above screen sector report is shown. Angel provide
company reports in which detail history of the company is given.
Along with this it also provide facility of sector reports like banking
report, pharma sector, agriculture sector, it sector etc so hose who
want to invest in particular sector can refer this sector reports.
Special reports – event based
Special event based report are also one of the value added service of the
Angel group. Investors can get detailed information about the event
happened and which help in future for trading.
It is very useful to those who are engaged in intra-day transaction. Angel
group is providing intra-day tips and intra-day call and it is glad that most
of the intra-day tips are proved to be successful.
THE BACK OFFICE
Internet based back office: 24 hours, 365 days, integrated online
back office through user id and password.
Current and historical data: data, both present and historical.
customized reports : digital contracts, bills, positions, ledger,
accounts segment wise- exchange wise
Queries: client queries and the feedback for the same
Online help desk facility: a complete helpdesk to assist you
PORTFOLIO ADVISORY SERVICE:-
Angel offers discretionary PMS to investors I order to assist them
in manging their funds amidst continuous changing market dynamics and
increasing complexities of investing. Investing in equity markets requires
in-depth knowledge and through analysis coupled with clear
understanding of domestic and international economies. Investors need
the services of an expert to manage their funds and deliver good returns
in diverse market conditions. Continuous wealth creation with an
emphasis on capital preservation is essential I today’s complex markets.
In order to systematically diversify the holdings of clients across
varied sectors and with an intention to give them handsome returns,
Angel devised the concept of the Model Portfolio:
Angel cam out with it’s first Model Portfolio in August 2002
Since then it has come out with Model Portfolios which have
consistently outperformed the Sensex YOY
In fact the latest Model Portfolio by Angel has successfully
outperformed the Sensex by a whopping 80 %.
Portfolio comprises only of fundamentally strong scrips
Regular update on holdings.
Online expert advice
No fees charged for this service
1) FUNDAMENTAL RESEARCH SERVICES :-
The Sunday Weekly Report :-
This weekly report is the ace of all reports. It offers a
comprehensive market over view and likely trends I the week ahead. It
also presents few top picks based on an in-dept analysis of technical and
fundamental factors. It gives short term and long term outlook on these
scrips. Their price targets and trading strategies. Another unique feature
of this report is that it provides an updated view of about 70 prominent
stocks on an ongoing basis.
The Industry Watch :-
This report provides an in-depth analysis of specific industries
which are likely to outperform others in the economy. It analyzes their
strengths and weaknesses and ascertains their future outlook. The final
view is arrived at after through interaction with industry experts. Also
comparative performances of various companies in the sector are
evaluated and to picks are recommended.
Stock Analysis :-
Angel’s stock research has performed very well over the past few
years and the Angel Model Portfolio has consistently outperformed the
benchmark indices. The fundamentals of select script are thoroughly
analyzed and an actionable advice is provided along with investment
rationale for each scrip.
Flash News :-
Key developments and significant news announcements that are
likely to have an impact on markets / scrips are flashed live o trading
terminals. Flash News keeps the market participants updated on an online
basis and helps them to reshuffle their holdings.
2) TECHNICAL RESEARCH SERVICES :-
Nifty Tracker :-
A nifty future is the most traded instrument with highest volumes
in F & O and excellent liquidity. Our team tracks the Nifty future and
generates calls based on our unique trading system which is a result of
our focused research over the past few years The objective is to generate
positive returns for traders who are looking for a high risk high reward
Online Chat :-
An online forum to help clients, specifically day traders in judging
the direction of the market and stocks which are I the limelight.
Intra Day Calls :-
For day traders, Angel provides intra-day calls with entry, exit and
stop loss levels during market hours. These calls are flashed on our
terminals. Our analysts continuously track the calls and provide
recommendations according to the market movements.
Position Calls :-
Angel’s “Position Trading Calls” are based on through analysis of
the price movement in select scrips. These calls are for a 10-15 day time
span with stop loss and target levels. These calls are flashed on our
terminals during market hours.
Derivative Strategies :-
Our analysts take view on the Nifty and select stocks based on the
derivatives data and technical tools. Suitable “Derivative Strategies” are
devised. Which are flashed on our terminals and published in our reports.
Futures Calls :-
A customized product for HNIs to help them trade with leveraged
position; wherein clients are advised to the stocks with entry, exit and
stop loss levels for short term benefits. Over and above this, financial
status of the calls is monitored at all times.
The main objective of the study is to analyse the awareness of
Equity and derivatives segment, their potential market and investment
patent of people in Rajkot City.
Why This Research Study Is Conducted?
In the Rajkot City, Most of the investors trade in equity while
Derivatives & Commodities segment remain inaccessible.
There are very few people in Rajkot who are trading in Derivatives
while there are immense opportunities for the development of these
Angel Broking Ltd is in the Equity, Derivatives & Commodities
segment company needs to focus on increasing the awareness about
Derivatives. Because, if trading on these instruments will increase, Angel
Broking Ltd will also be benefited by earning revenue in term of
Brokerage. This was the main reason behind conducting this study.
Secondary objectives are:
To know the investment habit and purpose of investing, of the
people of Rajkot City.
To know the awareness of Equity and Derivatives in the people
of Rajkot city.
To know the scope for the Equity and Derivatives market in
To know the influencing force behind the decision making
while trading in Equity and Derivatives.
To find out the best medium to educate the masses about Equity
H0: There is no significant difference in level of awareness of
Equity and Derivatives in the people of Rajkot city.
H1: There is significant difference in level of awareness of
Equity and Derivatives in the people of Rajkot city.
SOURCES OF DATA :-
There are mainly two sources of collection of data.
The data, which is collected directly from the respondents to the base of
knowledge and belief of the research, are called primary data.
The normal procedure is to interview some people individually to get a
sense of how people feel about the Equity and derivatives segment.
So far as my research is concerned, primary data is the main source of
information. I have collected data through Questionnaire and information
When data are collected and compelled from the published nature or any
other’s primary data is called secondary data.
So far as my research is concerned, I have not collected any information
from any sources. So, I have not used secondary data for my research.
SAMPLING PROCESS :-
It is very true that it’s very difficult to do the research with the
whole universe. As we know that it is not feasible to go for population
survey because of the numerous customers and their scattered location.
So for this purpose sample size has to be determined well in advance and
selection of sample also must be scientific so that it represents the whole
So far as my research is concerned, I have taken sample size of 100
respondents. I have selected many peoples who invested their savings in
to different investment tools.
All the respondents are stratified on the basis of their profession. I have
selected the samples as per my convenience.
Sample universe Rajkot city
Sampling Technique Stratified and Random
Sample size 100 respondents
Sampling Unit: Professional = Random
Business Man = Random
Government Employ = Random
Private Employees = Random
SCOPE OF STUDY
The research that is being conducted by me will be useful in the
This will helpful to know the investment patent of people.
This will helpful to know the mindset of peoples towards the Equity
This will help to the company, how to make people aware about
Equity and derivatives by imparting best education.
This will help the company to frame effective Marketing Strategy.
This will also help to select the right media for advertising to create
brand awareness as well as to give knowledge of the products.
This will also help to select right medium for trading in Equity and
This will help the company to reduce the obstacles which come in
the way for the development of Equity and derivatives segment.
LIMITATIONS OF THE STUDY :-
People may have personal bias towards particular investment option so
they may not give correct information and due to which conclusion may
The time duration of the research is short that’s why the information is
not covered fully.
The area was limited to Rajkot city only, so we can not know the degree
of the literacy outside the city.
The last limitation is Sample size, taken by us is of 100 only; due to
which we may not get the proper results.
Some of the person fills the wrong information about them because of
the some legal limitations.
Q.1 Gender :
21-35 2 36-50 5 Above 50 2
Post Graduate 27
0 10 20 30 40 50
Q.4 OCCUPATION :-
Professional 1 Businessman 1
Govt. Employee 4 Private Employee 2
Q.5 Of these investment options, with which are you familiar and
already invest in?
Bank FD 2 Postal Scheme 1
Mutual Funds Insurance Derivatives
1 2 0
0 5 10 15 20 25
Q.6 Are You invested in Equity or Commodity market?
Q.7 If Yes, than in which you are invested from below?
Equity 1 Derivatives (F&O) 1 Commodity 7
Equity F&O Commodity
Q. 8 If you are trading in derivatives & commodities or you
want to be in, which factors will you give importance ?
Risk Reduction Leverage benefit
Rate of Return
Risk Reduction Leverage benefit Rate of Return
Q.9 Do you consider investment in derivatives &
Commodity are safer then other investment avenues?
Q.10 If No, than What are constraints that are holding you
Risk 3 Uncertainty 1
Lack Information regarding market 1
Q.11 How do you take decisions if you want to trade in
Derivatives & Commodities ?
2 1 3
Independently Advice of Friends Broker
News Channels 0
Q.12 How much time will you be able to devote for learning
Equity OR Commodity ?
1 3 83
½ Hour 1 Hour
1/2 Hour 1 Hour Not Fixed
Q.13 According to you, Which medium is the most Reliable
for trading in Equity & Derivative ?
Stock Broking Company
Franchises/Sub Broker 2
Franchises/ Stock Broking
Sub Broker, 29 Co., 57
Chi - Square Test
H0: There is no significant difference in level of awareness of
Equity and Derivatives in the people of Rajkot city.
H1: There is significant difference in level of awareness of Equity and
Derivatives in the people of Rajkot city.
OBSERVED FREQUENCY TABLE
Occupation Investment in Investment Total
Equity or i n O t h er s
Professional 6 8 14
Govt. Employee 20 28 48
Businessman 5 12 17
Private 7 14 21
Total 38 62 100
E X P E C T E D F R E Q U E N C Y TA B L E
Occupation Investment in Investment Total
Equity or i n O t h er s
28 29.76 -1.76 3.10 0.104
5 6.46 -1.46 2.13 0.330
12 10.54 1.46 2.13 0.202
7 7.98 -0.98 0.96 0.120
14 13.02 0.98 0.96 0.074
100 100 1.139
.˙. Degree of freedom in this case
= (r - 1) (c - 1)
= (4-1) (2-1)
. ˙ . Chi square test value at 5% level of significance
Here, the table value at 5% level of significance with the
degree of freedom ( r-1) (c-1) = 3 is 7.815.
Here, calculate value is 1.139
So, Xcal. < X tab.
So, the Null Hypothesis is Accepted.
We can say that, there is no significant difference in level of
awareness of Equity and Derivatives in the people of Rajkot city.
1. Gender : Male Female
2.Age :- 21-35 36-50 Above 50
3. Education : ___________________________
4. Occupation: Professional Businessmen
Govt. Employee Private Employee
5. Where do you invest your saving?
Bank FD Postal Scheme
Mutual Funds Insurance Derivatives
6. Are You invested in Equity or Commodity market?
7. If Yes, than in which you are invested from below?
Equity Derivatives (F&O) Commodity
8. If you are trading in derivatives & commodities or you want to be
in, which factors will you give importance ?
Risk Reduction Leverage Benefit
Rate of Return
9. Do you consider investment in Equity & Derivative are safer then
other investment avenues ?
10. If NO, than what are consider that are holding you back ?
Lack Information regarding market
11. How do you take decision If you want to trade in Equity &
News Channels News Papers
12. How much time will you able to devoted for learning Equity &
OR Derivative ?
½ Hour 1 Hour
13. According to you, Which medium is the most Reliable for trading
in Equity & Derivative ?
Stock Broking Company
• Kothari C.R., Research Methodology, New Delhi, Vikas
Publishing House pvt. Ltd. 1978
• Pathak Bharti v., Indian Financial System, Delhi, Person
Education(Singapore) pvt. Ltd.
• ECONOMIC TIMES
• TIMES OF INDIA
• FINANCIAL EXPRESS
• SHAREKHAN’S VALUE LINE MAGAZINE