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Sania

  1. 1. A SUMMER TRAINING REPORT ON “360 Degree Analysis of Financial Market” as regard with India info Line limited Submitted to PUNJAB TECHNICAL UNIVERSITY In partial fulfillment of the degree of MASTER’S IN BUSINESS ADMINISTRATION (MBA) BATCH (2011-2013)Submitted To: Submitted By:Mr.Roshan Kumar SaniaKamra rdLECTURERM.B.A (3 sem)GNA-IMT PHAGWARAUniv. Roll No.1173881Class No.11-146 1 -
  2. 2. DECLERATIONI, hereby, declare that the MBA Project titled, “360 DegreeAnalysis of Financial Market” plansis original to the best of our knowledge and have not been published elsewhere. This is for thepurpose of partial fulfillment of the requirement for the degree of Masters of BusinessAdministration (MBA).Place: - PHAGWARA SANIA KAMRADate: -………………………….. Sign:-…………………………… 2 -
  3. 3. ACKNOWLEDGEMENTAny purpose and its fulfillment require deep routed efforts for its completion. Many charactersplay a vital role. This is more when a project undertaken is directly to a cause.We would like to thank MR. VarunSehgal, our Project guide, not only for giving us theopportunity to work on this project, but also for providing us with sound guidance and thenecessary facilities to carry out the project. He constantly insisted and helped us in learning newthings. He provided us a lot of learning opportunities.Finally I would like to thank all those who were directly and indirectly concerned in making my project successful. To put it in a nutshell a difficult and arduous journey was made simple and quiet enjoyable due to their support. SANIA KAMRA 3 -
  4. 4. CERTIFICATEThis is to certify that MS. SANIA KAMRA a student of GNA-IMT Phagwara has completedproject work on “360 Degree Analysis of Financial Market” as regard with India info Linelimited” under my guidance and supervision. I certify that this is an original work and has not been copied from any source.Signature of GuideName of Project Guide MR. VARUN SEHGALDate- 4 -
  5. 5. EXECUTIVE SUMMARYMBA program is one of the most reputed professional courses in the field of Management.Training is an integral part of MBA. As a complementary to that every trainee has to submit areport on the research work conducted in that institute.This report is thus prepared for the project work done at IndiaInfoline Jalandhar branch. Thetopic of the project is, “360 Degree Analysis of Financial Market”.This project is based about the different terms of financial market and the investment strategiesof the people in different markets. In this project I covered markets like Capital market, Moneymarket, Derivatives, Equity market, Commodity market, Currency market, Mutual funds,Insurance.Investment means putting your money to work to earn more money. If done wisely it can help tomeet ones financial goals like buying a new house, paying for a college education, education,enjoying a comfortable retirement or whatever is important to an individual. After studying aboutthe different markets people can invest their money in most profitable ways.One needs to make decisions about how much he/she wants to invest and where to invest. Tochoose he needs to know current good options available and their relative risk exposures. Thesehelp are given to a client in IndiaInfoline as to in which portfolio they can invest and what risksare related to it. People invest in different companies which they trust the most. India Info line isthe leading company among different brokerage companies. 5 -
  6. 6. TABLE OF CONTENTSCHAPTERS PARTICULARS PAGE NO. 1 INTRODUCTION OF THE PROJECT 1.1.Financial Market 1 1.2.Types of Financial Market 1-10 1.3.Indian Financial Market 10-13 1.4Stock Exchanges in India 13-15 2. COMPANY PROFILE 2.1. Introduction of the Industry 16 2.2. Financial Markets 17-18 2.3. Introduction of India Info line 18 2.4.History of India Info line 18-23 2.5. Products and Services of the Company 24-27 2.6.Market Share of the Company 27 2.7.Challenges Faced by the Company 27-28 2.8.Performance Highlights in 2011-12 28-29 2.9.Highlights 2011-12 Industry Optimism 29-30 3. REVIEW OF LITERATURE 31-32 4. OBJECTIVE OF THE STUDY 33 5. RESEARCH METHODOLOGY 5.1.Type of the Study 34-35 5.2.Sample Universe 5.3.Sample Size 5.4.Sources of Data 5.5.Duration Period 5.6 Limitations of the Study 6. DATA ANALYSIS AND INTERPRETATIONS 36-45 7. FINDINGS,SUGGESTIONS,AND CONCLUSION 7.1. Findings 46 7.2. suggestions 47 7.3. Conclusion 8. BIBLIOGRAPHY Annexure 6 -
  7. 7. CHAPTER-1INTRODUCTION 7 -
  8. 8. INTRODUCTION1.1. FINANCIAL MARKETA financial market is a market in which people and entities can trade financial securities,commodities, and other fungible items of value at low transaction costs and at prices that reflectsupply and demand. Securities include stocks and bonds, and commodities include preciousmetals or agricultural goods.Financial markets facilitate: The raising of capital The transfer of risk International trade1.2. Types of Financial Market Capital Market Money Market Commodity Market Derivatives Foreign Exchange InsuranceThese markets can further be classified into:1.2.1. CAPITAL MARKET:The market where securities are traded known as Securities market. It consists of two differentsegments namely primary and secondary market. The primary market deals with new or freshissue of securities and is, therefore, also known as new issue market; .whereas the secondarymarket provides a place for purchase and sale of existing securities and is often termed as stock.market or stock exchange. 8 -
  9. 9. Types of capital marketCapital Market can also be classified into:BOND MARKET:The bond market (also known as the debt, credit, or fixed income market) is a financial marketwhere participants buy and sell debt securities, usually in the form of bonds. As of 2009, the sizeof the worldwide bond market (total debt outstanding) is an estimated $82.2 trillion [1], of whichthe size of the outstanding U.S. bond market debt was $31.2 trillion according to BIS (oralternatively $34.3 trillion according to SIFMA).However, a small number of bonds, primarily corporate, are listed on exchanges. References tothe "bond market" usually refer to the government bond market, because of its size, liquidity,lack of credit risk and, therefore, sensitivity to interest rates. Because of the inverse relationshipbetween bond valuation and interest rates, the bond market is often used to indicate changes ininterest rates or the shape of the yield curve. 9 -
  10. 10. STOCK MARKET:A stock market or equity market is a public entity (a loose network of economic transactions, nota physical facility or discrete entity) for the trading of company stock (shares) and derivatives atan agreed price; these are securities listed on a stock exchange as well as those only tradedprivately.The size of the world stock market was estimated at about $36.6 trillion at the beginning ofOctober 2008.[1] The total world derivatives market has been estimated at about $791 trillionface or nominal value,[2] 11 times the size of the entire world economy.[3] The value of thederivatives market, because it is stated in terms of notional values, cannot be directly comparedtoa stock or a fixed income security, which traditionally refers to an actual value. Moreover, thevast majority of derivatives cancel each other out (i.e., a derivative bet on an event occurring isoffset by a comparable derivative bet on the event not occurring). Many such relatively illiquidsecurities are valued as marked to model, rather than an actual market price.The stocks are listed and traded on stock exchanges which are entities of a corporation or mutualorganization specialized in the business of bringing buyers and sellers of the organizations to alisting of stocks and securities together. The largest stock market in the United States, by marketcapitalization, is the New York Stock Exchange (NYSE). In Canada, the largest stock market isthe Toronto Stock Exchange. Major European examples of stock exchanges include theAmsterdam Stock Exchange, London Stock Exchange, Paris Bourse, and the Deutsche Börse(Frankfurt Stock Exchange). In Africa, examples include Nigerian Stock Exchange, JSE Limited,etc. Asian examples include the Singapore Exchange, the Tokyo Stock Exchange, the HongKong Stock Exchange, the Shanghai Stock Exchange, and the Bombay Stock Exchange. In LatinAmerica, there are such exchanges as the BM&F Bovespa and the BMV.TradingParticipants in the stock market range from small individual stock investors to large hedge fundtraders, who can be based anywhere. Their orders usually end up with a professional at a stockexchange, who executes the order of buying or selling.Market participants.Market participants include individual retail investors, institutional investors such as mutualfunds, banks, insurance companies and hedge funds, and also publicly traded corporationstrading in their own shares. Some studies have suggested that institutional investors andcorporations trading in their own shares generally receive higher risk-adjusted returns than retailinvestors.Mutual funds as a part of Capital MarketMUTUAL FUNDS 10 -
  11. 11. Mutual fund is a trust that pools the savings of a number of investors who share a commonfinancial goal. This pool of money is invested in accordance with a stated objective. The jointownership of the fund is thus “Mutual”, i.e. the fund belongs to all investors. The money thuscollected is then invested in capital market instruments such as shares, debentures and othersecurities. The income earned through these investments and the capital appreciations realizedare shared by its unit holders in proportion the number of units owned by them. Thus a MutualFund is the most suitable investment for the common man as it offers an opportunity to invest ina diversified, professionally managed basket of securities at a relatively low cost. A Mutual Fundis an investment tool that allows small investors access to a well-diversified portfolio of equities,bonds and other securities. Each shareholder participates in the gain or loss of the fund. Units areissued and can be redeemed as needed. The fund‟s Net Asset value (NAV) is determined eachday. Investments in securities are spread across a wide cross-section of industries and sectors andthus the risk is reduced. Diversification reduces the risk because all stocks may not move in thesame direction in the same proportion at the same time. Mutual fund issues units to the investorsin accordance with quantum of money invested by them. Investors of mutual funds are known asunit holders.Advantages of mutual fund•Portfolio Diversification 11 -
  12. 12. •Professional management•Reduction / Diversification of Risk•Liquidity•Flexibility & Convenience•Reduction in Transaction cost•Safety of regulated environment•Choice of schemes•TransparencyDisadvantages of mutual fund•No control over Cost in the Hands of an Investor•No tailor-made Portfolios•Managing a Portfolio Funds•Difficulty in selecting a Suitable Fund Scheme1.2.2. MONEY MARKET:The money market became a component of the financial markets for assets involved in short-term borrowing, lending, buying and selling with original maturities of one year or less. Tradingin the money markets is done over the counter, is wholesale. Various instruments like Treasurybills, commercial paper, bankers acceptances, deposits, certificates of deposit, bills of exchange,repurchase agreements, federal funds, and short-lived mortgage- and asset-backed securities doexist. It provides liquidity funding for the global financial system.1.2.3. COMMODITY MARKET:Commodity markets are markets where raw or primary products are exchanged. These rawcommodities are traded on regulated commodities exchanges, in which they are bought and soldin standardized contracts.This article focuses on the history and current debates regarding global commodity markets. Itcovers physical product (food, metals, and electricity) markets but not the ways that services,including those of governments, nor investment, nor debt, can be seen as a commodity. Articleson reinsurance markets, stock markets, bond markets and currency markets cover those concernsseparately and in more depth. One focus of this article is the relationship between simplecommodity money and the more complex instruments offered in the commodity markets. 12 -
  13. 13. Commodities tradingSpot tradingSpot trading is any transaction where delivery either takes place immediately, or with aminimum lag between the trade and delivery due to technical constraints. Spot trading normallyinvolves visual inspection of the commodity or a sample of the commodity, and is carried out inmarkets such as wholesale markets. Commodity markets, on the other hand, require the existenceof agreed standards so that trades can be made without visual inspection.Forward contractsA forward contract is an agreement between two parties to exchange at some fixed future date agiven quantity of a commodity for a price defined today. The fixed price today is known as theforward price. Early on these forward contracts were used as a way of getting products fromproducer to the consumer. These typically were only for food and agricultural products.Futures contractsA futures contract has the same general features as a forward contract but is standardized andtransacted through a futures exchange. Although more complex today, early forward contractsfor example, were used for rice in seventeenth century Japan. Modern forward, or futuresagreements began in Chicago in the 1840s, with the appearance of the railroads. Chicago, beingcentrally located, emerged as the hub between Midwestern farmers and producers and the eastcoast consumer population centers.In essence, a futures contract is a standardized forward contract in which the buyer and the selleraccept the terms in regards to product, grade, quantity and location and are only free to negotiatethe price.HedgingHedging, a common practice of farming cooperatives insures against a poor harvest bypurchasing futures contracts in the same commodity. If the cooperative has significantly less ofits product to sell due to weather or insects, it makes up for that loss with a profit on the markets,since the overall supply of the crop is short everywhere that suffered the same conditions.Delivery and condition guaranteesIn addition, delivery day, method of settlement and delivery point must all be specified.Typically, trading must end two (or more) business days prior to the delivery day, so that therouting of the shipment can be finalized via ship or rail, and payment can be settled when thecontract arrives at any delivery point.1.2.4. DERIVATIVE MARKET: 13 -
  14. 14. A derivative instrument is a contract between two or three parties that specifies conditions(especially the dates, resulting values of the underlying variables, and notional amounts) underwhich payments are to be made between the parties.Derivatives can be used for speculation ("bets") or to hedge ("insurance"). For example, aspeculator may sell deep in-the-money naked calls on a stock, expecting the stock price toplummet, but exposing himself to potentially unlimited losses. Very commonly, companies buycurrency forwards in order to limit losses due to fluctuations in the exchange rate of twocurrenciesTypesOver-the-counter (OTC) derivatives are contracts that are traded (and privately negotiated)directly between two parties, without going through an exchange or other intermediary. Productssuch as swaps, forward rate agreements, exotic options - and other exotic derivatives - are almostalways tradedExchange-traded derivative contracts (ETD) are those derivatives instruments that are traded viaspecialized derivatives exchanges or other exchanges. A derivatives exchange is a market whereindividuals Common derivative contract typesSome of the common variants of derivative contracts are as follows:Forwards: A tailored contract between two parties, where payment takes place at a specific timein the future at todays pre-determined price.Futures: are contracts to buy or sell an asset on or before a future date at a price specified today.A futures contract differs from a forward contract in that the futures contract is a standardizedcontract written by a clearing house that operates an exchange where the contract can be boughtand sold; the forward contract is a non-standardized contract written by the parties themselves.Options: are contracts that give the owner the right, but not the obligation, to buy (in the case ofa call option) or sell (in the case of a put option) an asset. The price at which the sale takes placeis known as the strike price, and is specified at the time the parties enter into the option. Theoption contract also specifies a maturity date. In the case of a European option, the owner has theright to require the sale to take place on (but not before) the maturity date; in the case of anAmerican option, the owner can require the sale to take place at any time up to the maturity date.If the owner of the contract exercises this right, the counter-party has the obligation to carry outthe transaction. Options are of two types: call option and put option. The buyer of a Call optionhas a right to buy a certain quantity of the underlying asset, at a specified price on or before agiven date in the future, he however has no obligation whatsoever to carry out this right.Similarly, the buyer of a Put option has the right to sell a certain quantity of an underlying asset, 14 -
  15. 15. at a specified price on or before a given date in the future, he however has no obligationwhatsoever to carry out this right.Binary options are contracts that provide the owner with an all-or-nothing profit profile.Warrants: Apart from the commonly used short-dated options which have a maximum maturityperiod of 1 year, there exists certain long-dated options as well, known as Warrant (finance).These are generally traded over-the-counter.Swaps: are contracts to exchange cash (flows) on or before a specified future date based on theunderlying value of currencies exchange rates, bonds/interest rates, commodities exchange,stocks or other assets. Another term which is commonly associated to Swap is Swaption which isbasically an option on the forward Swap. Similar to a Call and Put option, a Swaption is of twokinds: a receiver Swaption and a payer Swaption. While on one hand, in case of a receiverSwaption there is an option wherein you can receive fixed and pay floating, a payer swaption onthe other hand is an option to pay fixed and receive floating.Swapscan basically be categorized into two types:Interest Rate Swap: These basically necessitate swapping only interest associated cash flows inthe same currency, between two parties.Currency swap: In this kind of swapping, the cash flow between the two parties includes bothprincipal and interest. Also, the money which is being swapped is in different currency for bothparties. Trade standardized contracts that have been defined by the exchange.in this way.1.2.5. CURRENCY MARKETThe foreign exchange market (forex, FX, or currency market) is a form of exchange for theglobal decentralized trading of international currencies. Financial centers around the worldfunction as anchors of trading between a wide range of different types of buyers and sellersaround the clock, with the exception of weekends. The foreign exchange market determines therelative values of different currencies.The foreign exchange market assists international trade and investment by enabling currencyconversion. For example, it permits a business in the United States to import goods from theEuropean Union member states especially Eurozone members and pay Euros, even though itsincome is in United States dollars. It also supports direct speculation in the value of currencies,and the carry trade, speculation based on the interest rate differential between two currencies.The foreign exchange market is the most liquid financial market in the world. Traders includelarge banks, central banks, institutional investors, currency speculators, corporations,governments, other financial institutions, and retail investors. The average daily turnover in theglobal foreign exchange and related markets is continuously growing. According to the 2010 15 -
  16. 16. Triennial Central Bank Survey, coordinated by the Bank for International Settlements, averagedaily turnover was US$3.98 trillion in April 2010 (vs. $1.7 trillion in 1998).[3] Of this $3.98trillion, $1.5 trillion was spot transactions and $2.5 trillion was traded in outright forwards,swaps and other derivative.Most traded currencies by valueCurrency distribution of global foreign exchange market turnover[3] ISO 4217code % daily shareRank Currency (Symbol) (April 2010)1   United State Dollar USD ($) 84.9%2   Euro EUR (€) 39.1%3   Japanese Yen JPY (¥) 19.0%4   Pound Stirling GBP (£) 12.9%5   Australian dollar AUD ($) 7.6%6   Swiss franc CHF (Fr) 6.4%7   Canadian dollar CAD ($) 5.3%8   Hong Kong dollar HKD ($) 2.4%9   Swedish krona SEK (kr) 2.2%10   New Zealand dollar NZD ($) 1.6%11   South Korean won KRW (₩) 1.5%12   Singapore dollar SGD ($) 1.4%13   Norwegian krone NOK (kr) 1.3% 16 -
  17. 17. 14   Mexican peso MXN ($) 1.3%15   Indian rupee INR ( ) 0.9%Other 12.2%Total[65] 200%1.2.6. INSURANCE:Insurance is a form of risk management primarily used to hedge against the risk of a contingent,uncertain loss. Insurance is defined as the equitable transfer of the risk of a loss, from one entityto another, in exchange for payment. An insurer is a company selling the insurance; the insured,or policyholder, is the person or entity buying the insurance policy. The amount to be charged fora certain amount of insurance coverage is called the premium. Risk management, the practice ofappraising and controlling risk, has evolved as a discrete field of study and practice.The transaction involves the insured assuming a guaranteed and known relatively small loss inthe form of payment to the insurer in exchange for the insurers promise to compensate(indemnify) the insured in the case of a financial (personal) loss.1.3. INDIAN FINANCIAL MARKETSIndia Financial market is one of the oldest in the world and is considered to be the fastestgrowing and best among all the markets of the emerging economies.The history of Indian capital markets dates back 200 years toward the end of the 18th centurywhen India was under the rule of the East India Company. The development of the capitalmarket in India concentrated around Mumbai where no less than 200 to 250 securities brokerswere active during the second half of the 19th century.The financial market in India today is more developed than many other sectors because it wasorganized long before with the securities exchanges of Mumbai, Ahmadabad and Kolkata wereestablished as early as the 19th century. 17 -
  18. 18. By the early 1960s the total number of securities exchanges in India rose to eight, includingMumbai, Ahmadabad and Kolkata apart from Madras, Kanpur, Delhi, Bangalore and Pune.Today there are 21 regional securities exchanges in India in addition to the centralized NSE(National Stock Exchange) and OTCEI (Over the Counter Exchange of India).However the stock markets in India remained stagnant due to stringent controls on the marketeconomy that allowed only a handful of monopolies to dominate their respective sectors. Thecorporate sector wasnt allowed into many industry segments, which were dominated by the statecontrolled public sector resulting in stagnation of the economy right up to the early 1990s.Thereafter when the Indian economy began liberalizing and the controls began to be dismantledor eased out; the securities markets witnessed a flurry of IPO‟s that were launched. This resultedin many new companies across different industry segments to come up with newer products andservices.A remarkable feature of the growth of the Indian economy in recent years has been the roleplayed by its securities markets in assisting and fuelling that growth with money rose within theeconomy. This was in marked contrast to the initial phase of growth in many of the fast growingeconomies of East Asia that witnessed huge doses of FDI (Foreign Direct Investment) spurringgrowth in their initial days of market decontrol. During this phase in India much of the organizedsector has been affected by high growth as the financial markets played an all-inclusive role insustaining financial resource mobilization. Many PSUs (Public Sector Undertakings) thatdecided to offload part of their equity were also helped by the well-organized securities marketin India.The launch of the NSE (National Stock Exchange) and the OTCEI (Over the Counter Exchangeof India) during the mid-1990s by the government of India was meant to usher in an easier andmore transparent form of trading in securities. The NSE was conceived as the market for tradingin the securities of companies from the large-scale sector and the OTCEI for those from thesmall-scale sector. While the NSE has not just done well to grow and evolve into the virtualbackbone of capital markets in India the OTCEI struggled and is yet to show any sign of growthand development. The integration of IT into the capital market infrastructure has beenparticularly smooth in India due to the country‟s world class IT industry. This has pushed up theoperational efficiency of the Indian stock market to global standards and as a result the countryhas been able to capitalize on its high growth and attract foreign capital like never before. Theregulating authority for capital markets in India is the SEBI (Securities and Exchange Board ofIndia). SEBI came into prominence in the 1990s after the capital markets experienced someturbulence. It had to take drastic measures to plug many loopholes that were exploited by certainmarket forces to advance their vested interests. After this initial phase of struggle SEBI hasgrown in strength as the regulator of India‟s capital markets and as one of the country‟s mostimportant institutions. 18 -
  19. 19. 1.3.2. FINANCIAL MARKET REGULATIONSRegulations are an absolute necessity in the face of the growing importance of capital marketsthroughout the world. The development of a market economy is dependent on the developmentof the capital market. The regulation of a capital market involves the regulation of securities;these rules enable the capital market to function more efficiently and impartially.A well regulated market has the potential to encourage additional investors to partake, andcontribute in, furthering the development of the economy. The chief capital market regulatoryauthority is Securities and Exchange Board of India (SEBI).SEBI is the regulator for the securities market in India. It is the apex body to develop andregulate the stock market in India It was formed officially by the Government of India in 1992with SEBI Act 1992 being passed by the Indian Parliament. Chaired by C.B Behave, SEBI isheadquartered in the popular business district of Bandra-Kurla complex in Mumbai, and hasNorthern, Eastern, Southern and Western regional officesin New Delhi, Kolkata, Chennai and Ahmedabad. In place of Government Control, a statutoryand autonomous regulatory board with defined responsibilities, to cover both development &regulation of the market, and independent powers has been set up.The basic objectives of the Board were identified as:• To protect the interests of investors in securities;• To promote the development of Securities Market;•To regulate the securities market and• For matters connected therewith or incidental thereto.Since its inception SEBI has been working targeting the securities and is attending to thefulfillment of its objectives with commendable zeal and dexterity. The improvements in thesecurities markets like capitalization requirements, margining, establishment of clearingcorporations etc. reduced the risk of credit and also reduced the market.SEBI has introduced the comprehensive regulatory measures, prescribed registration norms, theeligibility criteria, the code of obligations and the code of conduct for different intermediarieslike, bankers to issue, merchant bankers, brokers and sub brokers, registrars, portfolio managers,credit rating agencies, underwriters and others. It has framed by-laws, risk identification and riskmanagement systems for Clearing houses of stock exchanges, surveillance system etc. which hasmade dealing in securities both safe and transparent to the end investor. 19 -
  20. 20. Another significant event is the approval of trading in stock indices (like S&P CNX Nifty&Sensex) in 2000. A market index is a convenient and effective product because of thefollowing reasons:• It acts as a barometer for market behavior;• It is used to benchmark portfolio performance;• It is used in derivative instruments like index futures and index options;•It can be used for passive fund management as in case of Index Funds.Two broad approaches of SEBI is to integrate the securities market at the national level, and alsoto diversify the trading products, so that there is an increase in number of traders includingbanks, financial institutions, insurance companies, mutual funds, primary dealers etc. to transactthrough the Exchanges. In this context the introduction of derivatives trading through IndianStock Exchanges permitted by SEBI in 2000 AD is a real landmark.SEBI has enjoyed success as a regulator by pushing systemic reforms aggressively andsuccessively (e.g. the quick movement towards making the markets electronic and paperlessrolling settlement on T+2 bases). SEBI has been active in setting up the regulations as requiredunder law.1.4. STOCK EXCHANGES IN INDIAStock Exchanges are an organized marketplace, either corporation or mutual organization, wheremembers of the organization gather to trade company stocks or other securities. The membersmay act either as agents for their customers, or as principals for their own accounts.As per the Securities Contracts Regulation Act, 1956 a stock exchange is an association,organization or body of individuals whether incorporated or not, established for the purpose ofassisting, regulating and controlling business in buying, selling and dealing in securities.Stock exchanges facilitate for the issue and redemption of securities and other financialinstruments including the payment of income and dividends. The record keeping is central buttrade is linked to such physical place because modern markets are computerized. The trade on anexchange is only by members and stock broker do have a seat on the exchange.List of Stock Exchanges in IndiaBombay Stock ExchangeNational Stock ExchangeOTC Exchange of India 20 -
  21. 21. Regional Stock Exchanges1. Ahmedabad2. Bangalore3. Bhubaneswar4. Calcutta5. Cochin6. Coimbatore7. Delhi8. Guwahati9. Hyderabad10. Jaipur11. Ludhiana12. Madhya Pradesh13. Madras14. Magadh15. Mangalore16. Meerut17. Pune18. Saurashtra Kutch19. Uttar Pradesh20. Vadodara 21 -
  22. 22. CHAPTER-2INDUSTRYPROFILE 22 -
  23. 23. INDUSTRY PROFILE2.1. INTRODUCTIONThe Indian broking industry is one of the oldest trading industries that have been around evenbefore the establishment of the BSE in 1875. Despite passing through number of changes in thepost liberalization period, the industry has found its way onwards sustainable growth. With thepurpose of gaining a deeper understanding about the role of the Indian stock broking industry inthe country‟s economy, we present in this section some of the industry insights gleaned fromanalysis of data received through primary research.For the broking industry, we started with an initial database of over 1,800 broking firms thatwere contacted, from which 464 responses were received. The list was further short listed basedon the number of terminals and the top 210 were selected for profiling. 394 responses, thatprovided more than 85% of the information sought have been included for this analysis presentedhere as insights. All the data for the study was collected through responses received directly fromthe broking firms. The insights have been arrived at through an analysis on various parameters,pertinent to the equity broking industry, such as region, terminal, market, branches, sub brokers,products and growth areas.Some key characteristics of the sample 394 firms are:• 3% firms started broking operations before 1950, 65% between 1950-1995 and 32% post1995.• On the basis of terminals, 40% are located at Mumbai, 12% in Delhi, 8% in Ahmedabad,7% in Kolkata, 4% in Chennai and 29% are from other cities• From this study, we find that almost 36% firm‟s trade in cash and derivatives and 27%are into cash markets alone. Around 20% trade in cash, derivatives and commodities• In the cash market, around 34% firm‟s trade at NSE, 14% at BSE and 52% trade at bothexchanges. In the derivative segment, 48% trade at NSE, 7% at BSE and 45% at both, whereas inthe debt market, 31% trade at NSE, 26% at BSE and 43% at both exchanges• Majority of branches are located in the North, i.e. around 40%. West has 31%, 24% arelocated in South and 5% in East• In terms of sub-brokers, around 55% are located in the South, 29% in West, 11% inNorth and 4% in East• Trading, IPOs and Mutual Funds are the top three products offered with 90% firmsoffering trading, 67% IPOs and 53% firms offering mutual fund transactions 23 -
  24. 24. • In terms of various areas of growth, 84% firms have expressed interest in expanding theirinstitutional clients, 66% firms intend to increase FII clients and 43% are interested in setting upJV in India and abroad• In terms of IT penetration, 62% firms have provided their website and around 94% firmshave email facility2.2. FINANCIAL MARKETThe financial markets have been classified as cash market, derivatives market, debt market andcommodities market. Cash market, also known asspot market, is the most sought after amongstinvestors. Majority of the sample broking firms are dealing in the cash market, followed byderivative and commodities. 27% firms are dealing only in the cash market, whereas 35% areinto cash and derivatives. Almost 20% firms trade in cash, derivatives and commodities market.Firms that are into cash, derivatives and debt are 7%. On the other hand, firms into cash andcommodities are 3%, cash & debt market and commodities alone are 2%. 4% firms trade in allthe markets.In the cash market, around 34% firm‟s trade at NSE, 14% at BSE and 52% trade at bothexchanges. In the equity derivative market, 48% of the sampled broking houses are members ofNSE and 7% trade at BSE, while 45% of the sample operates in both stock exchanges. Around43% of the broking houses operating in the debt market, trade at both exchanges with 31% and26% firms uniquely at NSE and BSE respectively. 24 -
  25. 25. INTRODUCTION OF INDIAINFOLINE2.3. INTRODUCTIONIndiaInfoline founded in 1995 by Mr. Nirmal Jain (Chairman and Managing Director) as anindependent business research and information provider. We gradually evolved into a one-stopfinancial services solutions provider. Our strong management team comprises competent anddedicated professionals.We are a pan-India financial services organization across 1,361 business locations and a presencein 428 cities. Our global footprint extends across geographies with offices in New York,Singapore and Dubai. We are listed on the Bombay Stock Exchange (BSE) and the NationalStock Exchange (NSE).We offer a wide range of services and products comprising broking (retail and institutionalequities and commodities), wealth management, credit and finance, insurance, asset managementand investment banking.We are registered with the BSE and the NSE for securities trading, MCX, NCDEX and DGCXfor commodities trading, CDSL and NSDL as depository participants. We are registered as aCategory I merchant banker and are a SEBI registered portfolio manager. We also received theFII license in IIFL Inc. IIFL Securities Pt. Ltd received approval from the Monetary Authority ofSingapore to carry out corporate advisory and dealing in securities operations. Two subsidiaries– India Info line Investment Services and Money line Credit Limited – are registered with RBI asnon-deposit taking non-banking financial services companies. India info line Housing FinanceLtd, the housing finance arm, is registered with the National Housing Bank. 25 -
  26. 26. 2.4. HISTROY OF INDIAINFOLINE The IndiaInfoline Group was originally incorporated on October 18, 1995 as ProbityResearch and Services Private Limited at Mumbai under the Companies Act, 1956 withRegistration No. 11 93797. The IndiaInfoline Group commenced its operations as anindependent provider of information, analysis and research covering Indian businesses, financialmarkets and economy, to institutional customers. We became a public limited company on April28, 2000 and the name of the Company was changed to Probity Research and Services Limited.The name of the Company was changed to India Infoline.com Limited on May 23, 2000 and laterto India Info line Limited on March 23, 2001. In 1999, The IndiaInfoline Group identified the potential of the Internet to cater to a massretail segment and transformed our business model from providing information services toinstitutional customers to retail customers. Hence we launched our Internet portal,www.indiainfoline.com in May 1999 and started providing news and market information,independent research, interviews with business leaders and other specialized features. In May 2000, the name of our Company was changed to India Infoline.com Limited toreflect the transformation of our business. Over a period of time, we have emerged as one of theleading business and financial information services provider in India. In the year 2000, The India Info line Group leveraged its position as a provider offinancial information and analysis by diversifying into transactional services, primarily for onlinetrading in shares and securities and online as well as offline distribution of personal financialproducts, like mutual funds and RBI Bonds. These activities were carried on by our whollyowned subsidiaries. The India Info line Group‟s broking services was launched under the brand name of5paisa.com through our subsidiary, India Info line Securities Private Limited andwww.5paisa.com, the e-broking portal, was launched for online trading in July 2000. Itcombined competitive brokerage rates and research, supported by Internet technology 26 -
  27. 27. Besidesinvestment advice from an experienced team of research analysts, we also offer real timestock quotes, market news and price charts with multiple tools for technical analysis.Acquisition of Agri Marketing Services Limited ("Agri") In March 2000, The IndiaInfoline Group acquired 100% of the equity shares of AgriMarketing Services Limited, from their owners in exchange for the issuance of 508,482 of ourequity shares. Agri was a direct selling agent of personal financial products including mutualfunds, fixed deposits, corporate bonds and post-office instruments. At the time of our acquisition,Agri operated 32 branches in South and West India serving more than 30,000 customers with astaff of, approximately 180 employees. After the acquisition, we changed the company name toIndia Infoline.com Distribution Company Limited. The India Infoline group, comprising the holding company, India Infoline Ltd (NSE:INDIAINFO, BSE: 532636) and it‟s subsidiaries, is one of the leading players in the Indianfinancial services space. India Infoline offers the entire gamut of financial services coveringinvestment products ranging from Equities and derivatives, Commodities, Portfolio ManagementServices, Mutual Funds, Life Insurance, Fixed deposits, Loans, Investment Banking, GOI bondsand other small savings instruments. It owns and manages the website, www.indiinfoline.com,which is one of India‟s leading online destinations for personal finance, stock markets, economyand business. A forerunner in the field of equity research, IndiaInfoline‟s research isacknowledged by none other than Forbes as „Best of the Web‟ and „…a must read for investorsin Asia‟. IndiaInfoline‟sresearch is available not just over the internet but also on internationalwire services like Bloomberg (Code: IILL), Thomson First Call and Internet Securities where itis amongst the most read Indian brokers.A network of 753 business locations spread over 346cities across India, facilitates the smooth acquisition and servicing of a large customer base. Allthese offices are connected with the corporate office in Mumbai with cutting edge networkingtechnology. The group caters to a customer base of over 500,000 over a variety of mediums viz.online, over the phone and at our branches. The Group is strengthening its institutional brokingand investment banking services and has built a team of experienced research analysts, sales andIndiaInforefers to IndiaInfoline Ltd and its subsidiaries. The consolidated figures will give amore meaningful picture of the Company to the investors. Reference to the company or 27 -
  28. 28. IndiaInfoline is to the business done by the company and its subsidiaries, unless otherwisespecified.KEY EXECUTIVESS.No Name Designation1 Mr. Nirmal Jain Chairman and Managing director2 Mr. A K Purwar Director3 Mr. R Venkataraman Executive Director4 Mr. NileshVikamsey Independent Director5 Mr. KrantiSinha Independent Director6 Mr. Sat Pal Khattar Non-Executive DirectorVISIONOur vision is to be the most respected company in the financial services space..MISSION“To become a full-fledged financial services company known for its quality of advice,personalized services and cutting edge technology”COMPANY PHILISOPHYThe IndiaInfoline Group is committed to placing the Investor First, by continuously striving toincrease the efficiency of the operations as well as the systems and processes for use of corporateresources in such a way so as to maximize the value to the stakeholders. The Group aims atachieving not only the highest possible standards of legal and regulatory compliances, but also ofeffective management.COMPANY STURCTURE 28 -
  29. 29. IndiaInfoline Limited is listed on both the leading stock exchanges in India, viz. the StockExchange, Mumbai (BSE) and the National Stock Exchange (NSE) and is also a member of boththe exchanges. It is engaged in the businesses of Equities broking, Wealth Advisory Services andPortfolio Management Services. It offers broking services in the Cash and Derivatives segmentsof the NSE as well as the Cash segment of the BSE. It is registered with NSDL as well as CDSLas a depository participant, providing a one-stop solution for clients trading in the equitiesmarket.A SEBI authorized Portfolio Manager; it offers Portfolio Management Services to clients. Theseservices are offered to clients as different schemes, which are based on differing investmentstrategies made to reflect the varied risk-return preferences of clients.MILESTONES ACHIEVED• 1995 Incorporated as an equity research and consulting firm with a client base thatincluded leading FIIs, banks, consulting firms and corporates.• 1996Restructured the business model to embrace the internet; launchedarchives.indiainfoline.com mobilized capital from reputed private equity investors. 29 -
  30. 30. • 1998Acquired commodities broking license; launched Portfolio Management Service.• 1999 Listed on the Indian stock markets.• 2009Launched a proprietary trading platform; inducted an institutional equities team;formed a Singapore subsidiary; raised over USD 300 MN in the group; launched consumerfinance business under the „Money line‟ brand.• 2010Launched wealth management services under the „IIFL Wealth‟ brand; set up IndiaInfo line Private Equity fund; received the Insurance broking license from IRDA; received theventure capital license; received in principle approval to sponsor a mutual fund; received „Bestbroker- India‟ award from Finance Asia; „Most Improved Brokerage- India‟ award from Asiamoney.• 2011 received registration for a housing finance company from the National HousingBank; received „Fastest growing Equity Broking House - Large firms‟ in India by Dun &Bradstreet.2.5PRODUCT & SERVICES2.5.1. EQUITY:Registered with the NSDL as well as CDSL as a depository participant, providing a one-stopsolution for clients trading in the equities market, Presence across 350 cities and towns with anetwork of over 850 business locations Equity client base of over 500,000 clients.Key Feature Membership on the Bombay Stock Exchange Limited and the National Stock Exchange Registered with the NSDL as well as CDSL as a depository participant, providing a one-stop solution for clients trading in the equities market Broking services in cash and derivative segments, online as well as offline. Presence across 350 cities and towns with a network of over 850 business locations Equity client base of over 500,000 clients Provision of free and world-class research to all clients 30 -
  31. 31. 2.5.2. COMMODITY:The Company was among the first to offer the facility of commodities trading in India‟s youngcommodities market (the MCX commenced operations only in 2003). Average monthly turnoveron the commodity exchanges increased from Rs 0.34 bn to Rs 20.02 bn.Key Features: Enjoys memberships with the MCX and NCDEX, two leading Indian commodities exchanges Recently acquired membership of the DGCX Multi-channel delivery model, making it among the select few to offer online as well as offline trading facilities Extended commodity trading to retail investors, among the few Indian financial intermediaries to do so Online business at 80% of revenues dominates commodities trading revenues Provides regular commodity updates pertaining to the Indian and international environment.2.5.3. LOANS:They say you mustnt trust a man till you know his house. Everyone likes hearing people sayWow, what a beautiful house you have! From cave dwelling, we have evolved and now a houseprovides far more than just shelter...it also becomes a source of pride. A Housing Loan is used asfinance to help you buy or modify that perfect home. The different Housing Loan products can be classified as: Home Loans & Home Extension Loans NRI Loans Land Loans Home Equity Loans2.5.4. INSURANCE 31 -
  32. 32. An entry into this segment helped complete the clients product basket; concurrently, it graduatedthe Company into a one stop retail financial solutions provider.Key features: India Info line was the first corporate in India to get the agency license in early 2001 The Company is the biggest corporate agency in India for life insurance products The Company operates multiple channels, namely branch network, preferred client group, direct marketing, corporate tax advisory, walk-ins and seminars, to reach out to customers.2.5.5. INVEST ONLINEIndia Info line has made investing in Mutual funds and primary market so effortless. All youhave to do is register with us and that‟s all. No paperwork no queues and No registration charges.If you are 5p customer use your existing login ID and Ledger (fund transfer) password.Indiainfoline offers you a host of mutual fund and IPO choices under one roof; backed by in-depth information and research to help you invest effortlessly2.5.6..INVEST IN MFIndiainfoline offers you a host of mutual fund choices under one roof, backed by in-depthresearch and advice from research house and tools configured as investor friendly. Investing inMutual Funds has never been easier2.5.7. APPLY IN IPOsYou could also invest in Initial Public Offers (IPOs) online without going through the hassles offilling ANY application form/ paperwork.KNOW MORE ABOUT IPO’sGet in-depth analyses of new IPOs issues (Initial Public Offerings) which are about to hit themarket and analysis on these recent IPO listings, prospectus/offer documents, and IPO reportsare few of the features, which help you, keep on top of the IPO markets. 32 -
  33. 33. 2.5.8. PORTFOLIO MANAGEMENTOur Portfolio Management Service is a product wherein an equity investment portfolio is createdto suit the investment objectives of a client. We at India Infoline invest your resources intostocks from different sectors, depending on your risk-return profile. This service is particularlyadvisable for investors who cannot afford to give time or dont have that expertise for day-to-daymanagement of their equity portfolioIt is all about your money, being managed by the experts, while you continue with your routinelife. Isnt it simple and totally hassle free.2.5.9. ASSET MANAGEMENTThe group recently commenced its offshore asset management business under the „IIFL Capital‟brand. Also, IIFL Securities Pt. Ltd received approval from the Monetary Authority of Singaporeto carry out global asset management operations. The Singapore arm can now offer broking,asset management and investment banking services.2.6. MARKET SHARES OF COMPANY Retail broking: IndiaInfoline has around 3.5 lakh customers. It has a tie-up with Bank of Baroda for e-broking. Institutional broking: IndiaInfoline has roped in Bharat Parajia, director of sales at CLSA in Singapore, H Nemkumar, CLSAs country head for India, AniruddhaDange, CLSAs head of research in India, and VasudevJagannath, CLSAs head of sales in India. While Parajiwill join as head of institutional sales at India Infoline, Dange will be head of research and Nemkumar head of investment banking. Each one of them is bringing in more than 10 years of experience with a top institutional brokerage in Asia. The CLSA foursome will also pick up stakes in India 33 -
  34. 34. Infoline through the preferential allotment route. Their collective stake would add up to around 15%. Parajia already holds a 2.88% stake in India Info line. He will subscribe to 25 lakh equity warrants at Rs. 440 each.Nemkumar will pick up another 25 lakh, while Jagannath and AniruddhaDange will subscribe to 20 lakh warrants each. The preferential allotment includes the four men buying 90 lakh equity warrants at a price of Rs. 440 each, of which 10% will be paid up front as their sign-on bonus. The remaining will be payable at the end of eighteen months when the warrants will be convertible into shares. That is, all these guys will have to cough up about Rs.360 crore to convert their warrants into shares. Currently, the companys institutional equities team has 35 people, including research analysts and dealers.2.7. CHALLENGES FACED BY INDIAINFOLINECategory related - the market is skewed primarily to the metros with Mumbai, Ahmedabad, andNew Delhi accounting for major bulk of the trading.Competition related - due to high brand proliferation, the market from a consumer standpoint hasbecome “commoditized” given product parity in terms of offerings.Brand related - challenge being to maintain high decibel and impactful communication on asustained basis.2.8. PERFORMANCE HIGHLIGHT IN 2011-12 Business Division Business Highlights Market share of equities increase from 3.4% in 2010-11 to 3.76% in 2011-12. Broking Customer base for retail equities increased 35.8% from .44 ml in 2010- 11 to .06 ml in 2011-12. Published in-depth and thematic reports on INCH, politics, rural India, infrastructure, self commodities, utilities and India worming. 34 -
  35. 35. Receive Insurance Broking License. Forged alliances with major insurance Insurance companies for the distribution of life and nonlife products. Alter the product mix in favor of traditional products like Endowment Products. Proactively suspended personal loans and mortgages business from Credit and Finance September 2011, while the personal loan business is still suspended, the mortgages business has been Re- Started. Revenue at Rs.2654.1 ml in 2011-12 against Rs.1937.5 ml in 2010-11. Registered the Housing Finance Subsidiary with NHB.Wealth and asset Management Introduce the family office platform. Raised around Rs.1.8 bl in the largest single day debenture listing of its kind. Received in principle approval for sitting up of Mutual Funds. Establish the infrastructure and knowledge capital for Office Store Asset Management Services.2.9. HIGHLIGHTS, 2011-12 INDUSTRY OPTISMWealth management•MobilisedRs 1.8 bn in the largest single-day debenture listing of its kind• Built relationships with many reputed families across India and the globeAsset management• Received the in-principle approval from SEBI to sponsor a Mutual fund• IIFL Securities Pvt Ltd received approval from the Monetary Authority of Singapore to carryout corporate advisory and dealing in securities. The Singapore arm can now offerBroking, asset management and investment banking services• IIFL Inc received an FII license, thereby facilitating the investment of dedicated funds in India 35 -
  36. 36. • Setup a team of experienced professionals for the offshore asset management businessKey Takeaways from India Infolineconcall: India Info line was the Global coordinator and BRLM for the QIP of Emami Limited and the Co-BRLM to the QIP of Cipla Ltd. Also, they were the Syndica members to Power IPO in July 2009. The first premium mobilization from insurance broking business stood at Rs 410 million. The net NPA on the books continue to remain less than 1%. Its core business improved significantly. Its market share remains same at 3.6%. Average daily equities volumes stood at Rs 33.36 billion as compared to Rs 32.25 billion in the previous quarter. The companys customer base improved to 33%. Its financial income grew by 48.7%. Its employee cost was of Rs 7.36 million. Administrator cost grew by 28% at Rs 507 million, QoQ. Depreciation coat stood at Rs 131.5 million. Interest coat was of Rs 155 million. Its advertisement cost was of Rs. 24 million. 36 -
  37. 37. CHAPTER-3 REVIEWOFLITERATURE 37 -
  38. 38. REVIEW OF LITERATUREGrewal S.S and NavjotGrewall (1984)revealed some basic investment rules and rules forselling shares. They warned the investors not to buy unlisted shares, as Stock Exchanges do notpermit trading in unlisted shares. Another rule that they specify is not to buy inactive shares, ie,shares in which transactions take place rarely. The main reason why shares are inactive isbecause there are no buyers for them. They are mostly shares of companies, which are not doingwell.Jack Clark Francis2 (1986) revealed the importance of the rate of return in investments andreviewed the possibility of default and bankruptcy risk. He opined that in an uncertain world,investors cannot predict exactly what rate of return an investment will yield. However hesuggested that the investors can formulate a probability distribution of the possible rates ofreturn. He also opined that an investor who purchases corporate.Similarly Chen et al. (1986) applied an APT model to test the significance of various factors inexplaining security returns. They used the monthly data for the period 1953-1983; the resultsspecified that the factors like spread between long and short interest rates, expected andunexpected inflation, industrial production, and the spread between returns on high- and low-grade bonds were significant in explaining the variability of a security returnDavid.L.Scott and WilliamEdward4 (1990) reviewed the important risks of owning commonstocks and theways to minimize these risks. They commented that the severity of financial riskdepends on how heavily a business relies on debt. Financial risk is relatively easy to minimizeif an investor sticks to the common stocks of companies that employ small amounts of debt.They suggested that a relativelyeasy way to ensure some degree of liquidity is to restrictinvestment in stocks having a history of adequate trading volume. Investors concerned aboutbusiness risk can reduce it by selecting common stocks of firms that are diversified in severalunrelated industries. 38 -
  39. 39. Philippe Jhorion and Sarkis Joseph Khouryl6 (1996) reviewed international factors of risksand their effect on financial markets. He opined that domestic investment is a subset of theglobal asset allocation decision and that it is impossible to evaluate the risk of domesticsecurities without reference to international factors. Investors must be aware of factors drivingstock prices and the interaction between movements in stock prices and exchange rates.According to them the financial markets have become very much volatile over the last decadedue to the unpredictable speedy changes like oil price shocks, drive towards economic andmonetary unification in Europe, the wide scale conversion of communist countries to freemarket policies etc. They emphasized the need for tightly controlled risk management measuresto guard against the unpredictable behavior of financial markets. 39 -
  40. 40. CHAPTER-4OBJECTIVE OF THE STUDY 40 -
  41. 41. OBJECTIVE OF THE STUDY• To know about the Knowledge of the people regarding financial market.• To study the preference of the people among different markets.• To analyse the factors which people want from their investment.• Satisfaction of the people toward India Infoline. 41 -
  42. 42. CHAPTER-5 RESEARCHMETHODOLOGY 42 -
  43. 43. RESEARCH METHODOLOGY5.1. Type of the studyThe type of my study is descriptive, analytical and exploratory in nature.5.2. Sample UniverseSample has been collected from the Jalandhar region.5.3. Sample size and TechniqueSample size is 50 and sample technique is judgmental.5.4. Sources of dataResearch is totally based on primary data. Secondary data can be used only for the reference.Research has been done by primary data collection, and primary data has been collected byinteracting with various people. The secondary data has been collected through various journalsand websites.5.4.1. Primary dataThe various sources of primary data for my project are as follows. Local residents Small retailers Customer of IIFL.5.4.2. Secondary dataThe secondary data was the most important source for my project because it gave us informationabout company profile, competitors, market scenario, market share, etc. It also give usinformation of the financial industry, its emergence,& its importance in country progress. Weused secondary data for following sources:• Internet• Indiainfoline brochure 43 -
  44. 44. Newspapers Journals Magazines5.5. Duration of Study:The study was carried out for a period of 45 days, from 21 may to 30 June 2012.5.6. Limitation of the study Due to money and time constraint I take lesser no. of samples for my study, a Study is restricted to Jalandhar region only. Possibility of error in data collection because many of investors may have not given actual answers of my questionnaire. 44 -
  45. 45. CHAPTER-6QUESTIONNAIRE 45 -
  46. 46. 6.1. No. of the people invest in stock market. Response No. of respondents %age Yes 50 100% No 0 0 Percentage Yes No 0% 100%InterpretationFrom this data we come to know that mostly people investing their money in stock market. 46 -
  47. 47. 6.2.This data interprets that how much knowledge people have about the stock market. Response No. of persons % age Very High 10 20% High 12 24% Average 15 30% Low 8 16% Very Low 5 10% Percentage Very High High Average Low Very Low 10% 20% 16% 24% 30%InterpretationMostly People have high knowledge about stock exchanges. But there many people who investedbut have very less knowledge about it. 47 -
  48. 48. 6.3.. knowledge of the people about NSE and BSE. Response No. of Respondent %age Yes 42 84% No 8 12% Pecentage Yes No 16% 84%InterpretationThis represents that 84% people are aware about the stock exchanges NSE and BSE. 48 -
  49. 49. 6.4.To Know about the investment period for which mostly investor invest their money. Response No. of Respondent %age Short Period 30 60% Long period 20 40% Percentage Short Period Long Period 40% 60% Interpretation This shows that people wants to invest money in those securities which have shorter maturity period. 49 -
  50. 50. 6.5. Preference of the people among different markets. Response No. of Respondents %age Equity 14 28% Commodity 10 20% Currency 6 12% Mutual funds 16 32% Others 4 8% Percentage Equity Commodity Currency Mutual Funds Others 8% 28% 32% 20% 12% Interpretations This shows people invest in their money in different markets.People of the Jalandhar region would prefer to invest in mutual funds more than other markets. 50 -
  51. 51. 6.6.This represents that what people want from their investment. Response No. of Respondent %age Liquidity 10 20% Low Risk 18 36% High Return 15 30% Trust 7 14% Percentage Liquidity Low Risk High Return Trust 14% 20% 30% 36%InterpretationThis data interprets that 20% people wants liquidity from their investment, 36% people investmoney in those market where they bear lower risk, 30% people wants high return frominvestment and 14% people wants trust that they want to invest where their money is safe. Thuswe interpret that different people wants different things from their investment plan but peoplewants to invest in those securities which have low risk. 51 -
  52. 52. 6.7. No. of the persons invested in India Infoline.Response No. of Respondent %ageYes 40 80%No 10 20% Percentage Yes No 20% 80%InterpretationPeople investing in the products of the India Info line. There is the less no. of the peoples whoare not investing in the India info line.6.8. Investment by the people in different products of India Info line. Response No. of Respondent %age Equity 12 30% Commodity 10 25% Currency 4 10% 52 -
  53. 53. Mutual fund 12 30% Others 2 5% Percentage Equity Commodity Currency Mutual fund Others 5% 30% 30% 10% 25% Interpretation People invested in India Info line Products. Mostly people investing in mutual funds and Equity of the company. Currency Market of the IIFL is very less popular.6.9. To know about the satisfaction level of the people among India Infoline. Response No. of Respondent %age Yes 28 70% No 12 30% 53 -
  54. 54. Pecentage Yes No 30% 70%Interpretation This interprets that 70% people are satisfied with the Products and services that provided by IIFL.6.10.This represent the investment of people in other companies also. Response No. of Respondent %age Reliance 12 24% Religare 10 20% kotak 15 30% Other 13 26% 54 -
  55. 55. Percentage Reliance Religare Kotak Secuirities Other 26% 24% 20% 30%InterpretationThis data interpret that apart from IIFL in which companies people invest their money.24% people invest in Reliance, 20% in Religare, 30% in Kotak securities 26% in othercompanies. Mostly people would prefer to invest in Kotak Securities. 55 -
  56. 56. CHAPTER-7 Findings Suggestions Conclusion 56 -
  57. 57. 7.1. Findings People are so much aware about the financial market and their terms. They invest their money after having full knowledge of the market. Mostly people invest their money for short period instead of long period because they want quick return from the investment. In Today‟s world there are lot of the speculation in the market in spite this almost every person invest in stock exchange according to my survey. People invest their money in both money market and capital market. People invest money in different markets like equity, commodity, mutual funds but mostly people would prefer to invest in mutual funds and equities. Different people want different things from their investment. People want low risk in their investment so that their money will be safe. Many people invest in the company IIFL. And mostly invest in Mutual funds. Most of the people are satisfied with the product and services of the company. People also invest in others companies. They invest in different markets of the company like commodity, equity, currency, mutual funds, loans, insurance etc. “Brand” plays important role for the investment. People invest in those Companies where they have faith or they are well known with them.7.2. Suggestions The companies should provide more advertisements about their product so that people invest more and they come to know about their investments plans and procedures. Financial market is so wide so people don‟t know where to invest and how these investment plans is profitable to them so procedure should be easy and guidance should be given to them. As per findings we know that the people invest less in currency and commodity market so directors of the regional stock exchanges and FMC should find some ways in order to make educated the investor about the market. 57 -
  58. 58. IIFL should market its products more so that people are awared about the products of the company. Company should provide better services to its customers. To increase awareness about Share Market and the name India Infoline itself, the company should organize campaign. The campaign can be weekly, monthly, yearly, it will give a good result to the company to capture market in the competitive position7.3. ConclusionAs my project, mostly people invest in stock exchanges. People invest in different market likeequity, commodity, currency, mutual funds etc. People invest for both short and long Period.While doing this project I was able to know about reputed broking firm India info line. I had gota chance for knowing and analyzing the Financial market.. From the survey, I found that Indiainfo line deals in currency market, equity market, commodity market, mutual funds, loans andinsurance. .India Info line provides very good services to its customers. From the survey, I foundthat People invest in mutual funds more with India Info line. I found that India info line is in thetop three positions in the share market. 58 -
  59. 59. CHAPTER-8Bibliography 59 -
  60. 60. Bibliography www.indiainfoline.com www.nse.com www.5paisa.com WWW.ONLINERESEARCHONLINE.COMBooks Source Kothari,C.R(2011,Research Methodology,KalyaniWeb reference for Literature Review Clark jack (1986) Francis, lnzlestrrrents - Analysis and Management, MC Grew Hill, International Editions. Scott David‟s. And EdwardWilliam (1990), Ulzderstrrrldilzg and Managing lnz? estr~rerrtrlsk and return, MC. Grew HillBook Co. (U.K.) Ltd., London 60 -
  61. 61. Annexure 61 -
  62. 62. QUESTIONNAIREQ1. Do you have knowledge about stock exchange?Very High () High ()Average () Low ()Very Low ()Q2. Do you ever invest money in share market?Yes ( ) No ( )Q3.Do you know about NSE and BSE? Yes ( ) No ( )Q4. Are you a long term investor or short term investor?Long term ( ) Short term ( )Q5. In which segment do you deal?Equity ( ) Commodity ( )Mutual funds ( ) Currency ( )Others ( )Q6. While investing your money which factor will you prefer?Liquidity ( ) Low risk ( )Higher return ( ) Trust ( )Q7.Have you ever invest in Indiainfoline?Yes ( ) No ( )Q8. IN which market you r dealing with Indiainfoline? 62 -
  63. 63. Equity ( ) Commodity ( )Currency ( ) Others ( )Q9. Are you satisfied with product and services provided by the company?Yes ( ) NO ( )Q10.What is the other companies in which you are investing?Reliance ( ) Religare ( )KotakSecuirities ( ) Others ( ) 63 -

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