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A

SUMMER TRAINING REPORT

ON

360 Degree Analysis of Financial Marketas regard with

India info Line limited

Submitted to

PUNJAB TECHNICAL UNIVERSITY

In partial fulfillment of the degree of

MASTERS IN BUSINESS ADMINISTRATION (MBA)

BATCH (2011-2013)

Submitted To: Submitted By:

Mr.Roshan Kumar Sania Kamra

LECTURER M.B.A (3rdsem)

GNA-IMT PHAGWARA Univ. Roll No.1173881

Class No.11-146

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DECLERATION

I, hereby, declare that the MBA Project titled, 360 Degree Analysis of Financial Market plans

is original to the best of our knowledge and have not been published elsewhere. This is for the

purpose of partial fulfillment of the requirement for the degree of Masters of Business

Administration (MBA).

Place: - PHAGWARA SANIA KAMRA

Date: -.. Sign:-

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ACKNOWLEDGEMENT

Any purpose and its fulfillment require deep routed efforts for its completion. Many characters

play a vital role. This is more when a project undertaken is directly to a cause.

We would like to thank MR. Varun Sehgal, our Project guide, not only for giving us theopportunity to work on this project, but also for providing us with sound guidance and the

necessary facilities to carry out the project. He constantly insisted and helped us in learning new

things. 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

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CERTIFICATE

This is to certify that MS. SANIA KAMRA a student of GNA-IMT Phagwara has completed

project work on 360 Degree Analysis of FinancialMarket as regard with India info Line

limited under my guidance and supervision.

I certify that this is an original work and has not been copied from any source.

Signature of Guide

Name of Project Guide MR. VARUN SEHGAL

Date-

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EXECUTIVE SUMMARY

MBA 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 a

report on the research work conducted in that institute.

This report is thus prepared for the project work done at IndiaInfoline Jalandhar branch. The

topic of the project is, 360 Degree Analysis of Financial Market.

This project is based about the different terms of financial market and the investment strategies

of the people in different markets. In this project I covered markets like Capital market, Money

market, 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 to

meet one's 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 about

the 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. To

choose he needs to know current good options available and their relative risk exposures. These

help are given to a client in IndiaInfoline as to in which portfolio they can invest and what risks

are related to it. People invest in different companies which they trust the most. India Info line is

the leading company among different brokerage companies.

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TABLE OF CONTENTS

CHAPTERS PARTICULARS PAGE NO.

1 INTRODUCTION OF THE PROJECT1.1.Financial Market1.2.Types of Financial Market1.3.Indian Financial Market1.4Stock Exchanges in India

11-1010-1313-15

2. COMPANY PROFILE2.1. Introduction of the Industry2.2. Financial Markets2.3. Introduction of India Info line2.4.History of India Info line2.5. Products and Services of the Company2.6.Market Share of the Company2.7.Challenges Faced by the Company2.8.Performance Highlights in 2011-122.9.Highlights 2011-12 Industry Optimism

1617-181818-2324-272727-2828-2929-30

3. REVIEW OF LITERATURE 31-32

4. OBJECTIVE OF THE STUDY 33

5. RESEARCH METHODOLOGY5.1.Type of the Study

5.2.Sample Universe5.3.Sample Size5.4.Sources of Data5.5.Duration Period5.6 Limitations of the Study

34-35

6. DATA ANALYSIS AND INTERPRETATIONS 36-45

7. FINDINGS,SUGGESTIONS,AND CONCLUSION7.1. Findings7.2. suggestions

7.3. Conclusion

4647

8. BIBLIOGRAPHYAnnexure

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CHAPTER-1

INTRODUCTION

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INTRODUCTION

1.1. FINANCIAL MARKET

A 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 precious

metals or agricultural goods.

Financial markets facilitate:

The raising of capital

The transfer of risk

International trade

1.2. Types of Financial Market

Capital Market

Money Market

Commodity Market

Derivatives

Foreign Exchange

Insurance

These 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 different

segments namely primary and secondary market. The primary market deals with new or fresh

issue of securities and is, therefore, also known as new issue market; .whereas the secondary

market provides a place for purchase and sale of existing securities and is often termed as stock

.market or stock exchange.

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Types of capital market

Capital Market can also be classified into:

BOND MARKET:

The bond market (also known as the debt, credit, or fixed income market) is a financial market

where participants buy and sell debt securities, usually in the form of bonds. As of 2009, the size

of the worldwide bond market (total debt outstanding) is an estimated $82.2 trillion [1], of which

the size of the outstanding U.S. bond market debt was $31.2 trillion according to BIS (or

alternatively $34.3 trillion according to SIFMA).

However, a small number of bonds, primarily corporate, are listed on exchanges. References to

the "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 relationship

between bond valuation and interest rates, the bond market is often used to indicate changes in

interest rates or the shape of the yield curve.

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STOCK MARKET:

A stock market or equity market is a public entity (a loose network of economic transactions, not

a physical facility or discrete entity) for the trading of company stock (shares) and derivatives at

an agreed price; these are securities listed on a stock exchange as well as those only traded

privately.

The size of the world stock market was estimated at about $36.6 trillion at the beginning of

October 2008.[1] The total world derivatives market has been estimated at about $791 trillion

face or nominal value,[2] 11 times the size of the entire world economy.[3] The value of the

derivatives market, because it is stated in terms of notional values, cannot be directly comparedto

a stock or a fixed income security, which traditionally refers to an actual value. Moreover, the

vast majority of derivatives 'cancel' each other out (i.e., a derivative 'bet' on an event occurring is

offset by a comparable derivative 'bet' on the event not occurring). Many such relatively illiquid

securities 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 mutual

organization specialized in the business of bringing buyers and sellers of the organizations to a

listing of stocks and securities together. The largest stock market in the United States, by market

capitalization, is the New York Stock Exchange (NYSE). In Canada, the largest stock market is

the Toronto Stock Exchange. Major European examples of stock exchanges include the

Amsterdam Stock Exchange, London Stock Exchange, Paris Bourse, and the Deutsche Brse

(Frankfurt Stock Exchange). In Africa, examples include Nigerian Stock Exchange, JSE Limited,

etc. Asian examples include the Singapore Exchange, the Tokyo Stock Exchange, the Hong

Kong Stock Exchange, the Shanghai Stock Exchange, and the Bombay Stock Exchange. In Latin

America, there are such exchanges as the BM&F Bovespa and the BMV.

Trading

Participants in the stock market range from small individual stock investors to large hedge fund

traders, who can be based anywhere. Their orders usually end up with a professional at a stock

exchange, who executes the order of buying or selling.

Market participants

.Market participants include individual retail investors, institutional investors such as mutual

funds, banks, insurance companies and hedge funds, and also publicly traded corporationstrading in their own shares. Some studies have suggested that institutional investors and

corporations trading in their own shares generally receive higher risk-adjusted returns than retail

investors.

Mutual funds as a part of Capital Market

MUTUAL FUNDS

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Mutual fund is a trust that pools the savings of a number of investors who share a common

financial goal. This pool of money is invested in accordance with a stated objective. The joint

ownership of the fund is thus Mutual, i.e. the fund belongs to all investors. The money thus

collected is then invested in capital market instruments such as shares, debentures and other

securities. The income earned through these investments and the capital appreciations realized

are shared by its unit holders in proportion the number of units owned by them. Thus a Mutual

Fund is the most suitable investment for the common man as it offers an opportunity to invest in

a diversified, professionally managed basket of securities at a relatively low cost. A Mutual Fund

is 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 are

issued and can be redeemed as needed. The funds Net Asset value (NAV) is determined each

day. Investments in securities are spread across a wide cross-section of industries and sectors and

thus the risk is reduced. Diversification reduces the risk because all stocks may not move in the

same direction in the same proportion at the same time. Mutual fund issues units to the investors

in accordance with quantum of money invested by them. Investors of mutual funds are known asunit holders.

Advantages of mutual fund

Portfolio Diversification

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Professional management

Reduction / Diversification of Risk

Liquidity

Flexibility & Convenience

Reduction in Transaction cost

Safety of regulated environment

Choice of schemes

Transparency

Disadvantages 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 Scheme

1.2.2. 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 Treasury

bills, commercial paper, bankers' acceptances, deposits, certificates of deposit, bills of exchange,

repurchase agreements, federal funds, and short-lived mortgage- and asset-backed securities do

exist. 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 raw

commodities are traded on regulated commodities exchanges, in which they are bought and sold

in standardized contracts.

This article focuses on the history and current debates regarding global commodity markets. It

covers 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. Articles

on reinsurance markets, stock markets, bond markets and currency markets cover those concerns

separately and in more depth. One focus of this article is the relationship between simple

commodity money and the more complex instruments offered in the commodity markets.

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Commodities trading

Spot trading

Spot trading is any transaction where delivery either takes place immediately, or with a

minimum 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 in

markets such as wholesale markets. Commodity markets, on the other hand, require the existence

of agreed standards so that trades can be made without visual inspection.

Forward contracts

A forward contract is an agreement between two parties to exchange at some fixed future date a

given quantity of a commodity for a price defined today. The fixed price today is known as the

forward price. Early on these forward contracts were used as a way of getting products from

producer to the consumer. These typically were only for food and agricultural products.

Futures contracts

A futures contract has the same general features as a forward contract but is standardized and

transacted through a futures exchange. Although more complex today, early forward contracts

for example, were used for rice in seventeenth century Japan. Modern forward, or futures

agreements began in Chicago in the 1840s, with the appearance of the railroads. Chicago, being

centrally located, emerged as the hub between Midwestern farmers and producers and the east

coast consumer population centers.

In essence, a futures contract is a standardized forward contract in which the buyer and the seller

accept the terms in regards to product, grade, quantity and location and are only free to negotiate

the price.

Hedging

Hedging, a common practice of farming cooperatives insures against a poor harvest by

purchasing futures contracts in the same commodity. If the cooperative has significantly less of

its 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 guarantees

In 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 the

routing of the shipment can be finalized via ship or rail, and payment can be settled when the

contract arrives at any delivery point.

1.2.4. DERIVATIVE MARKET:

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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) under

which payments are to be made between the parties.

Derivatives can be used for speculation ("bets") or to hedge ("insurance"). For example, a

speculator 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 buy

currency forwards in order to limit losses due to fluctuations in the exchange rate of two

currencies

Types

Over-the-counter (OTC) derivatives are contracts that are traded (and privately negotiated)

directly between two parties, without going through an exchange or other intermediary. Products

such as swaps, forward rate agreements, exotic options - and other exotic derivatives - are almost

always traded

Exchange-traded derivative contracts (ETD) are those derivatives instruments that are traded via

specialized derivatives exchanges or other exchanges. A derivatives exchange is a market where

individuals Common derivative contract types

Some of the common variants of derivative contracts are as follows:

Forwards: A tailored contract between two parties, where payment takes place at a specific time

in the future at today's 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 standardized

contract written by a clearing house that operates an exchange where the contract can be bought

and 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 of

a call option) or sell (in the case of a put option) an asset. The price at which the sale takes place

is known as the strike price, and is specified at the time the parties enter into the option. The

option contract also specifies a maturity date. In the case of a European option, the owner has the

right to require the sale to take place on (but not before) the maturity date; in the case of an

American 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 out

the transaction. Options are of two types: call option and put option. The buyer of a Call option

has a right to buy a certain quantity of the underlying asset, at a specified price on or before a

given 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,

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at a specified price on or before a given date in the future, he however has no obligation

whatsoever 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 the

underlying 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 is

basically an option on the forward Swap. Similar to a Call and Put option, a Swaption is of two

kinds: a receiver Swaption and a payer Swaption. While on one hand, in case of a receiver

Swaption there is an option wherein you can receive fixed and pay floating, a payer swaption on

the 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 in

the same currency, between two parties.

Currency swap:In this kind of swapping, the cash flow between the two parties includes both

principal and interest. Also, the money which is being swapped is in different currency for both

parties. Trade standardized contracts that have been defined by the exchange.in this way.

1.2.5. CURRENCY MARKET

The foreign exchange market (forex, FX, or currency market) is a form of exchange for the

global decentralized trading of international currencies. Financial centers around the world

function as anchors of trading between a wide range of different types of buyers and sellers

around the clock, with the exception of weekends. The foreign exchange market determines the

relative values of different currencies.

The foreign exchange market assists international trade and investment by enabling currency

conversion. For example, it permits a business in the United States to import goods from the

European Union member states especially Eurozone members and pay Euros, even though its

income 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 include

large banks, central banks, institutional investors, currency speculators, corporations,

governments, other financial institutions, and retail investors. The average daily turnover in the

global foreign exchange and related markets is continuously growing. According to the 2010

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Triennial Central Bank Survey, coordinated by the Bank for International Settlements, average

daily turnover was US$3.98 trillion in April 2010 (vs. $1.7 trillion in 1998).[3] Of this $3.98

trillion, $1.5 trillion was spot transactions and $2.5 trillion was traded in outright forwards,

swaps and other derivative.

Most traded currencies by value

Currency distribution of global foreign exchange market turnover[3]

Rank CurrencyISO 4217code

(Symbol)

% daily share

(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%
http://en.wikipedia.org/wiki/Norwayhttp://en.wikipedia.org/wiki/Singaporehttp://en.wikipedia.org/wiki/South_Koreahttp://en.wikipedia.org/wiki/New_Zealandhttp://en.wikipedia.org/wiki/Swedenhttp://en.wikipedia.org/wiki/Hong_Konghttp://en.wikipedia.org/wiki/Canadahttp://en.wikipedia.org/wiki/Switzerlandhttp://en.wikipedia.org/wiki/Australiahttp://en.wikipedia.org/wiki/United_Kingdomhttp://en.wikipedia.org/wiki/Japanhttp://en.wikipedia.org/wiki/European_Unionhttp://en.wikipedia.org/wiki/United_Stateshttp://en.wikipedia.org/wiki/Norwayhttp://en.wikipedia.org/wiki/Singaporehttp://en.wikipedia.org/wiki/South_Koreahttp://en.wikipedia.org/wiki/New_Zealandhttp://en.wikipedia.org/wiki/Swedenhttp://en.wikipedia.org/wiki/Hong_Konghttp://en.wikipedia.org/wiki/Canadahttp://en.wikipedia.org/wiki/Switzerlandhttp://en.wikipedia.org/wiki/Australiahttp://en.wikipedia.org/wiki/United_Kingdomhttp://en.wikipedia.org/wiki/Japanhttp://en.wikipedia.org/wiki/European_Unionhttp://en.wikipedia.org/wiki/United_Stateshttp://en.wikipedia.org/wiki/Norwayhttp://en.wikipedia.org/wiki/Singaporehttp://en.wikipedia.org/wiki/South_Koreahttp://en.wikipedia.org/wiki/New_Zealandhttp://en.wikipedia.org/wiki/Swedenhttp://en.wikipedia.org/wiki/Hong_Konghttp://en.wikipedia.org/wiki/Canadahttp://en.wikipedia.org/wiki/Switzerlandhttp://en.wikipedia.org/wiki/Australiahttp://en.wikipedia.org/wiki/United_Kingdomhttp://en.wikipedia.org/wiki/Japanhttp://en.wikipedia.org/wiki/European_Unionhttp://en.wikipedia.org/wiki/United_Stateshttp://en.wikipedia.org/wiki/Norwayhttp://en.wikipedia.org/wiki/Singaporehttp://en.wikipedia.org/wiki/South_Koreahttp://en.wikipedia.org/wiki/New_Zealandhttp://en.wikipedia.org/wiki/Swedenhttp://en.wikipedia.org/wiki/Hong_Konghttp://en.wikipedia.org/wiki/Canadahttp://en.wikipedia.org/wiki/Switzerlandhttp://en.wikipedia.org/wiki/Australiahttp://en.wikipedia.org/wiki/United_Kingdomhttp://en.wikipedia.org/wiki/Japanhttp://en.wikipedia.org/wiki/European_Unionhttp://en.wikipedia.org/wiki/United_Stateshttp://en.wikipedia.org/wiki/Norwayhttp://en.wikipedia.org/wiki/Singaporehttp://en.wikipedia.org/wiki/South_Koreahttp://en.wikipedia.org/wiki/New_Zealandhttp://en.wikipedia.org/wiki/Swedenhttp://en.wikipedia.org/wiki/Hong_Konghttp://en.wikipedia.org/wiki/Canadahttp://en.wikipedia.org/wiki/Switzerlandhttp://en.wikipedia.org/wiki/Australiahttp://en.wikipedia.org/wiki/United_Kingdomhttp://en.wikipedia.org/wiki/Japanhttp://en.wikipedia.org/wiki/European_Unionhttp://en.wikipedia.org/wiki/United_Stateshttp://en.wikipedia.org/wiki/Norwayhttp://en.wikipedia.org/wiki/Singaporehttp://en.wikipedia.org/wiki/South_Koreahttp://en.wikipedia.org/wiki/New_Zealandhttp://en.wikipedia.org/wiki/Swedenhttp://en.wikipedia.org/wiki/Hong_Konghttp://en.wikipedia.org/wiki/Canadahttp://en.wikipedia.org/wiki/Switzerlandhttp://en.wikipedia.org/wiki/Australiahttp://en.wikipedia.org/wiki/United_Kingdomhttp://en.wikipedia.org/wiki/Japanhttp://en.wikipedia.org/wiki/European_Unionhttp://en.wikipedia.org/wiki/United_Stateshttp://en.wikipedia.org/wiki/Norwayhttp://en.wikipedia.org/wiki/Singaporehttp://en.wikipedia.org/wiki/South_Koreahttp://en.wikipedia.org/wiki/New_Zealandhttp://en.wikipedia.org/wiki/Swedenhttp://en.wikipedia.org/wiki/Hong_Konghttp://en.wikipedia.org/wiki/Canadahttp://en.wikipedia.org/wiki/Switzerlandhttp://en.wikipedia.org/wiki/Australiahttp://en.wikipedia.org/wiki/United_Kingdomhttp://en.wikipedia.org/wiki/Japanhttp://en.wikipedia.org/wiki/European_Unionhttp://en.wikipedia.org/wiki/United_Stateshttp://en.wikipedia.org/wiki/Norwayhttp://en.wikipedia.org/wiki/Singaporehttp://en.wikipedia.org/wiki/South_Koreahttp://en.wikipedia.org/wiki/New_Zealandhttp://en.wikipedia.org/wiki/Swedenhttp://en.wikipedia.org/wiki/Hong_Konghttp://en.wikipedia.org/wiki/Canadahttp://en.wikipedia.org/wiki/Switzerlandhttp://en.wikipedia.org/wiki/Australiahttp://en.wikipedia.org/wiki/United_Kingdomhttp://en.wikipedia.org/wiki/Japanhttp://en.wikipedia.org/wiki/European_Unionhttp://en.wikipedia.org/wiki/United_Stateshttp://en.wikipedia.org/wiki/Norwayhttp://en.wikipedia.org/wiki/Singaporehttp://en.wikipedia.org/wiki/South_Koreahttp://en.wikipedia.org/wiki/New_Zealandhttp://en.wikipedia.org/wiki/Swedenhttp://en.wikipedia.org/wiki/Hong_Konghttp://en.wikipedia.org/wiki/Canadahttp://en.wikipedia.org/wiki/Switzerlandhttp://en.wikipedia.org/wiki/Australiahttp://en.wikipedia.org/wiki/United_Kingdomhttp://en.wikipedia.org/wiki/Japanhttp://en.wikipedia.org/wiki/European_Unionhttp://en.wikipedia.org/wiki/United_Stateshttp://en.wikipedia.org/wiki/Norwayhttp://en.wikipedia.org/wiki/Singaporehttp://en.wikipedia.org/wiki/South_Koreahttp://en.wikipedia.org/wiki/New_Zealandhttp://en.wikipedia.org/wiki/Swedenhttp://en.wikipedia.org/wiki/Hong_Konghttp://en.wikipedia.org/wiki/Canadahttp://en.wikipedia.org/wiki/Switzerlandhttp://en.wikipedia.org/wiki/Australiahttp://en.wikipedia.org/wiki/United_Kingdomhttp://en.wikipedia.org/wiki/Japanhttp://en.wikipedia.org/wiki/European_Unionhttp://en.wikipedia.org/wiki/United_Stateshttp://en.wikipedia.org/wiki/Norwayhttp://en.wikipedia.org/wiki/Singaporehttp://en.wikipedia.org/wiki/South_Koreahttp://en.wikipedia.org/wiki/New_Zealandhttp://en.wikipedia.org/wiki/Swedenhttp://en.wikipedia.org/wiki/Hong_Konghttp://en.wikipedia.org/wiki/Canadahttp://en.wikipedia.org/wiki/Switzerlandhttp://en.wikipedia.org/wiki/Australiahttp://en.wikipedia.org/wiki/United_Kingdomhttp://en.wikipedia.org/wiki/Japanhttp://en.wikipedia.org/wiki/European_Unionhttp://en.wikipedia.org/wiki/United_Stateshttp://en.wikipedia.org/wiki/Norwayhttp://en.wikipedia.org/wiki/Singaporehttp://en.wikipedia.org/wiki/South_Koreahttp://en.wikipedia.org/wiki/New_Zealandhttp://en.wikipedia.org/wiki/Swedenhttp://en.wikipedia.org/wiki/Hong_Konghttp://en.wikipedia.org/wiki/Canadahttp://en.wikipedia.org/wiki/Switzerlandhttp://en.wikipedia.org/wiki/Australiahttp://en.wikipedia.org/wiki/United_Kingdomhttp://en.wikipedia.org/wiki/Japanhttp://en.wikipedia.org/wiki/European_Unionhttp://en.wikipedia.org/wiki/United_Stateshttp://en.wikipedia.org/wiki/Norwayhttp://en.wikipedia.org/wiki/Singaporehttp://en.wikipedia.org/wiki/South_Koreahttp://en.wikipedia.org/wiki/New_Zealandhttp://en.wikipedia.org/wiki/Swedenhttp://en.wikipedia.org/wiki/Hong_Konghttp://en.wikipedia.org/wiki/Canadahttp://en.wikipedia.org/wiki/Switzerlandhttp://en.wikipedia.org/wiki/Australiahttp://en.wikipedia.org/wiki/United_Kingdomhttp://en.wikipedia.org/wiki/Japanhttp://en.wikipedia.org/wiki/European_Unionhttp://en.wikipedia.org/wiki/United_States

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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 entity

to 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 for

a certain amount of insurance coverage is called the premium. Risk management, the practice of

appraising 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 in

the form of payment to the insurer in exchange for the insurer's promise to compensate

(indemnify) the insured in the case of a financial (personal) loss.

1.3. INDIAN FINANCIAL MARKETS

India Financial market is one of the oldest in the world and is considered to be the fastest

growing 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 century

when India was under the rule of the East India Company. The development of the capital

market in India concentrated around Mumbai where no less than 200 to 250 securities brokers

were active during the second half of the 19th century.

The financial market in India today is more developed than many other sectors because it was

organized long before with the securities exchanges of Mumbai, Ahmadabad and Kolkata were

established as early as the 19th century.

14 Mexican peso MXN ($) 1.3%

15 Indian rupee INR ( ) 0.9%

Other 12.2%

Total 200%
http://en.wikipedia.org/wiki/Indiahttp://en.wikipedia.org/wiki/Mexicohttp://en.wikipedia.org/wiki/Indiahttp://en.wikipedia.org/wiki/Mexicohttp://en.wikipedia.org/wiki/Indiahttp://en.wikipedia.org/wiki/Mexico

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By the early 1960s the total number of securities exchanges in India rose to eight, including

Mumbai, 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. The

corporate sector wasn't allowed into many industry segments, which were dominated by the state

controlled 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 dismantled

or eased out; the securities markets witnessed a flurry of IPOs that were launched. This resulted

in many new companies across different industry segments to come up with newer products and

services.

A remarkable feature of the growth of the Indian economy in recent years has been the role

played 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 growing

economies of East Asia that witnessed huge doses of FDI (Foreign Direct Investment) spurring

growth in their initial days of market decontrol. During this phase in India much of the organized

sector has been affected by high growth as the financial markets played an all-inclusive role in

sustaining financial resource mobilization. Many PSUs (Public Sector Undertakings) that

decided to offload part of their equity were also helped by the well-organized securities market

in India.

The launch of the NSE (National Stock Exchange) and the OTCEI (Over the Counter Exchange

of India) during the mid-1990s by the government of India was meant to usher in an easier and

more transparent form of trading in securities. The NSE was conceived as the market for trading

in the securities of companies from the large-scale sector and the OTCEI for those from the

small-scale sector. While the NSE has not just done well to grow and evolve into the virtual

backbone of capital markets in India the OTCEI struggled and is yet to show any sign of growth

and development. The integration of IT into the capital market infrastructure has been

particularly smooth in India due to the countrys world class IT industry. This has pushed up the

operational efficiency of the Indian stock market to global standards and as a result the country

has 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 of

India). SEBI came into prominence in the 1990s after the capital markets experienced some

turbulence. It had to take drastic measures to plug many loopholes that were exploited by certain

market forces to advance their vested interests. After this initial phase of struggle SEBI has

grown in strength as the regulator of Indias capital markets and as one of the countrys most

important institutions.

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1.3.2. FINANCIAL MARKET REGULATIONS

Regulations are an absolute necessity in the face of the growing importance of capital markets

throughout the world. The development of a market economy is dependent on the development

of 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, and

contribute in, furthering the development of the economy. The chief capital market regulatory

authority 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 and

regulate the stock market in India It was formed officially by the Government of India in 1992

with SEBI Act 1992 being passed by the Indian Parliament. Chaired by C.B Behave, SEBI is

headquartered in the popular business district of Bandra-Kurla complex in Mumbai, and has

Northern, Eastern, Southern and Western regional offices

in New Delhi, Kolkata, Chennai and Ahmedabad. In place of Government Control, a statutory

and 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 the

fulfillment of its objectives with commendable zeal and dexterity. The improvements in the

securities markets like capitalization requirements, margining, establishment of clearing

corporations etc. reduced the risk of credit and also reduced the market.

SEBI has introduced the comprehensive regulatory measures, prescribed registration norms, the

eligibility criteria, the code of obligations and the code of conduct for different intermediaries

like, 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 risk

management systems for Clearing houses of stock exchanges, surveillance system etc. which has

made dealing in securities both safe and transparent to the end investor.

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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 the

following 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 also

to diversify the trading products, so that there is an increase in number of traders including

banks, financial institutions, insurance companies, mutual funds, primary dealers etc. to transact

through the Exchanges. In this context the introduction of derivatives trading through Indian

Stock Exchanges permitted by SEBI in 2000 AD is a real landmark.

SEBI has enjoyed success as a regulator by pushing systemic reforms aggressively and

successively (e.g. the quick movement towards making the markets electronic and paperless

rolling settlement on T+2 bases). SEBI has been active in setting up the regulations as required

under law.

1.4. STOCK EXCHANGES IN INDIA

Stock Exchanges are an organized marketplace, either corporation or mutual organization, where

members of the organization gather to trade company stocks or other securities. The members

may 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 of

assisting, regulating and controlling business in buying, selling and dealing in securities.

Stock exchanges facilitate for the issue and redemption of securities and other financial

instruments including the payment of income and dividends. The record keeping is central but

trade is linked to such physical place because modern markets are computerized. The trade on an

exchange is only by members and stock broker do have a seat on the exchange.

List of Stock Exchanges in India

Bombay Stock Exchange

National Stock Exchange

OTC Exchange of India

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Regional Stock Exchanges

1. Ahmedabad

2. Bangalore

3. Bhubaneswar

4. Calcutta

5. Cochin

6. Coimbatore

7. Delhi

8. Guwahati

9. Hyderabad

10. Jaipur

11. Ludhiana

12. Madhya Pradesh

13. Madras

14. Magadh

15. Mangalore

16. Meerut

17. Pune

18. Saurashtra Kutch

19. Uttar Pradesh

20. Vadodara

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CHAPTER-2

INDUSTRYPROFILE

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INDUSTRY PROFILE

2.1. INTRODUCTION

The Indian broking industry is one of the oldest trading industries that have been around even

before 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 the

purpose of gaining a deeper understanding about the role of the Indian stock broking industry in

the countrys economy, we present in this section some of the industry insights gleaned from

analysis of data received through primary research.

For the broking industry, we started with an initial database of over 1,800 broking firms that

were contacted, from which 464 responses were received. The list was further short listed based

on the number of terminals and the top 210 were selected for profiling. 394 responses, that

provided more than 85% of the information sought have been included for this analysis presented

here 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% post

1995.

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% firms 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% firmstrade at NSE, 14% at BSE and 52% trade at both

exchanges. In the derivative segment, 48% trade at NSE, 7% at BSE and 45% at both, whereas in

the 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% are

located in South and 5% in East

In terms of sub-brokers, around 55% are located in the South, 29% in West, 11% in

North and 4% in East

Trading, IPOs and Mutual Funds are the top three products offered with 90% firms

offering trading, 67% IPOs and 53% firms offering mutual fund transactions

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INTRODUCTION OF INDIAINFOLINE

2.3. INTRODUCTION

IndiaInfoline founded in 1995 by Mr. Nirmal Jain (Chairman and Managing Director) as an

independent business research and information provider. We gradually evolved into a one-stop

financial services solutions provider. Our strong management team comprises competent and

dedicated professionals.

We are a pan-India financial services organization across 1,361 business locations and a presence

in 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 National

Stock Exchange (NSE).

We offer a wide range of services and products comprising broking (retail and institutional

equities and commodities), wealth management, credit and finance, insurance, asset management

and investment banking.

We are registered with the BSE and the NSE for securities trading, MCX, NCDEX and DGCX

for commodities trading, CDSL and NSDL as depository participants. We are registered as a

Category 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 of

Singapore to carry out corporate advisory and dealing in securities operations. Two subsidiaries

India Info line Investment Services and Money line Credit Limitedare registered with RBI as

non-deposit taking non-banking financial services companies. India info line Housing Finance

Ltd, the housing finance arm, is registered with the National Housing Bank.

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investment advice from an experienced team of research analysts, we also offer real time stock

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 Agri

Marketing Services Limited, from their owners in exchange for the issuance of 508,482 of our

equity shares. Agri was a direct selling agent of personal financial products including mutual

funds, 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 a

staff of, approximately 180 employees. After the acquisition, we changed the company name to

India Infoline.com Distribution Company Limited.

The India Infoline group, comprising the holding company, India Infoline Ltd (NSE:

INDIAINFO, BSE: 532636) and its subsidiaries, is one of the leading players in the Indian

financial services space. India Infoline offers the entire gamut of financial services covering

investment products ranging from Equities and derivatives, Commodities, Portfolio Management

Services, Mutual Funds, Life Insurance, Fixed deposits, Loans, Investment Banking, GOI bonds

and other small savings instruments. It owns and manages the website, www.indiinfoline.com,

which is one of Indias leading online destinations for personal finance, stock markets, economyand business. A forerunner in the field of equity research, IndiaInfolines research is

acknowledged by none other than Forbes as Best of the Web and a must read for investors

in Asia. IndiaInfolinesresearch is available not just over the internet but also on international

wire services like Bloomberg (Code: IILL), Thomson First Call and Internet Securities where it

is amongst the most read Indian brokers.A network of 753 business locations spread over 346

cities across India, facilitates the smooth acquisition and servicing of a large customer base. All

these offices are connected with the corporate office in Mumbai with cutting edge networking

technology. 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 broking

and investment banking services and has built a team of experienced research analysts, sales and

IndiaInforefers to IndiaInfoline Ltd and its subsidiaries. The consolidated figures will give a

more meaningful picture of the Company to the investors. Reference to the company or

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IndiaInfoline is to the business done by the company and its subsidiaries, unless otherwise

specified.

KEY EXECUTIVES

S.No Name Designation

1 Mr. Nirmal Jain Chairman and Managing director

2 Mr. A K Purwar Director

3 Mr. R Venkataraman Executive Director

4 Mr. NileshVikamsey Independent Director

5 Mr. KrantiSinha Independent Director

6 Mr. Sat Pal Khattar Non-Executive Director

VISION

Our 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 PHILISOPHY

The IndiaInfoline Group is committed to placing the Investor First, by continuously striving to

increase the efficiency of the operations as well as the systems and processes for use of corporate

resources in such a way so as to maximize the value to the stakeholders. The Group aims at

achieving not only the highest possible standards of legal and regulatory compliances, but also of

effective management.

COMPANY STURCTURE

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IndiaInfoline Limited is listed on both the leading stock exchanges in India, viz. the Stock

Exchange, Mumbai (BSE) and the National Stock Exchange (NSE) and is also a member of both

the exchanges. It is engaged in the businesses of Equities broking, Wealth Advisory Services and

Portfolio Management Services. It offers broking services in the Cash and Derivatives segments

of the NSE as well as the Cash segment of the BSE. It is registered with NSDL as well as CDSL

as a depository participant, providing a one-stop solution for clients trading in the equities

market.

A SEBI authorized Portfolio Manager; it offers Portfolio Management Services to clients. These

services are offered to clients as different schemes, which are based on differing investment

strategies 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 that

included leading FIIs, banks, consulting firms and corporates.

1996Restructured the business model to embrace the internet; launched

archives.indiainfoline.com mobilized capital from reputed private equity investors.

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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 consumer

finance business under the Money line brand.

2010Launched wealth management services under the IIFL Wealth brand; set up India

Info line Private Equity fund; received the Insurance broking license from IRDA; received the

venture capital license; received in principle approval to sponsor a mutual fund; received Best

broker- India award from Finance Asia; Most Improved Brokerage- India award from Asia

money.

2011 received registration for a housing finance company from the National Housing

Bank; received Fastest growing Equity Broking House - Large firms in India by Dun &

Bradstreet.

2.5PRODUCT & SERVICES

2.5.1. EQUITY:

Registered with the NSDL as well as CDSL as a depository participant, providing a one-stop

solution for clients trading in the equities market, Presence across 350 cities and towns with a

network 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

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2.5.2. COMMODITY:

The Company was among the first to offer the facility of commodities trading in Indiasyoung

commodities market (the MCX commenced operations only in 2003). Average monthly turnover

on 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 mustn't trust a man till you know his house. Everyone likes hearing people say

Wow, what a beautiful house you have! From cave dwelling, we have evolved and now a house

provides far more than just shelter...it also becomes a source of pride. A Housing Loan is used as

finance 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 Loans

2.5.4. INSURANCE

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An entry into this segment helped complete the client's product basket; concurrently, it graduated

the 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 ONLINE

India Info line has made investing in Mutual funds and primary market so effortless. All you

have to do is register with us and thats 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 effortlessly

2.5.6..INVEST IN MF

Indiainfoline offers you a host of mutual fund choices under one roof, backed by in-depth

research and advice from research house and tools configured as investor friendly. Investing in

Mutual Funds has never been easier

2.5.7. APPLY IN IPOs

You could also invest in Initial Public Offers (IPOs) online without going through the hassles of

filling ANY application form/ paperwork.

KNOW MORE ABOUT IPOs

Get in-depth analyses of new IPOs issues (Initial Public Offerings) which are about to hit the

market and analysis on these recent IPO listings, prospectus/offer documents, and IPO reports

are few of the features, which help you, keep on top of the IPO markets.

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2.5.8. PORTFOLIO MANAGEMENT

Our Portfolio Management Service is a product wherein an equity investment portfolio is created

to suit the investment objectives of a client. We at India Infoline invest your resources into

stocks from different sectors, depending on your risk-return profile. This service is particularly

advisable for investors who cannot afford to give time or don't have that expertise for day-to-day

management of their equity portfolio

It is all about your money, being managed by the experts, while you continue with your routine

life. Isn't it simple and totally hassle free.

2.5.9. ASSET MANAGEMENT

The 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 Singapore

to 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, CLSA's country head for India, AniruddhaDange, CLSA's head of

research in India, and VasudevJagannath, CLSA's 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

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Insurance

Receive Insurance Broking License. Forged alliances with major insurance

companies for the distribution of lifeand nonlife products.

Alter the product mix in favor of

traditional products like EndowmentProducts.

Credit and Finance

Proactively suspended personal loansand mortgages business fromSeptember 2011, while the personalloan business is still suspended, themortgages business has been Re-Started.

Revenue at Rs.2654.1 ml in 2011-12against Rs.1937.5 ml in 2010-11.

Registered the Housing FinanceSubsidiary with NHB.

Wealth and asset Management Introduce the family office platform.

Raised around Rs.1.8 bl in the largestsingle day debenture listing of its kind.

Received in principle approval forsitting up of Mutual Funds.

Establish the infrastructure and

knowledge capital for Office StoreAsset Management Services.

2.9. HIGHLIGHTS, 2011-12 INDUSTRY OPTISM

Wealth management

Mobilised Rs 1.8 bn in the largest single-day debenture listing of its kind

Built relationships with many reputed families across India and the globe

Asset management

Received the in-principle approval from SEBI to sponsor a Mutual fund

IIFL Securities PvtLtd received approval from the Monetary Authority of Singapore to carry

out corporate advisory and dealing in securities. The Singapore arm can now offer

Broking, asset management and investment banking services

IIFL Inc received an FII license, therebyfacilitating the investment of dedicated funds in India

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Setup a team of experienced professionals for the offshore asset management business

Key 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 company's 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.

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CHAPTER-3

REVIEW OF

LITERATURE

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Philippe Jhorion and Sarkis Joseph Khouryl6 (1996) reviewed international factors of risks

and their effect on financial markets. He opined that domestic investment is a subset of the

global asset allocation decision and that it is impossible to evaluate the risk of domestic

securities without reference to international factors. Investors must be aware of factors driving

stock 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 decade

due to the unpredictable speedy changes like oil price shocks, drive towards economic and

monetary unification in Europe, the wide scale conversion of communist countries to free

market policies etc. They emphasized the need for tightly controlled risk management measures

to guard against the unpredictable behavior of financial markets.

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CHAPTER-4

OBJECTIVE OF

THE STUDY

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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.

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CHAPTER-5

RESEARCH

METHODOLOGY

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Newspapers

Journals

Magazines

5.5. 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.

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CHAPTER-6

QUESTIONNAIRE

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6.1. No. of the people invest in stock market.

Response No. of respondents %age

Yes 50 100%

No 0 0

Interpretation

From this data we come to know that mostly people investing their money in stock market.

100%

0%

Percentage

Yes No

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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%

Interpretation

Mostly People have high knowledge about stock exchanges. But there many people who invested

but have very less knowledge about it.

20%

24%

30%

16%

10%

Percentage

Very High High Average Low Very Low

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6.3.. knowledge of the people about NSE and BSE.

Response No. of Respondent %age

Yes 42 84%

No 8 12%

Interpretation

This represents that 84% people are aware about the stock exchanges NSE and BSE.

84%

16%

Pecentage

Yes No

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6.4.To Know about the investment period for which mostly investor invest their money.


Short Period 30 60%

Long period 20 40%

Interpretation

This shows that people wants to invest money in those securities which have shorter

maturity period.

60%

40%

Percentage

Short Period Long Period

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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%

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.

28%

20%

12%

32%

8%

PercentageEquity Commodity Currency Mutual Funds Others

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6.6.This represents that what people want from their investment.


Liquidity 10 20%

Low Risk 18 36%

High Return 15 30%

Trust 7 14%

Interpretation

This data interprets that 20% people wants liquidity from their investment, 36% people invest

money in those market where they bear lower risk, 30% people wants high return from

investment and 14% people wants trust that they want to invest where their money is safe. Thus

we interpret that different people wants different things from their investment plan but people

wants to invest in those securities which have low risk.

20%

36%

30%

14%

Percentage

Liquidity Low Risk High Return Trust

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Mutual fund 12 30%

Others 2 5%

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.


Yes 28 70%

No 12 30%

30%

25%10%

30%

5%

Percentage

Equity Commodity Currency Mutual fund Others

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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.


Reliance 12 24%

Religare 10 20%

kotak 15 30%

Other 13 26%

70%

30%

Pecentage

Yes No

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Interpretation

This 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 other

companies. Mostly people would prefer to invest in Kotak Securities.

24%

20%

30%

26%

Percentage

Reliance Religare Kotak Secuirities Other

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CHAPTER-7

Findings

Suggestions

Conclusion

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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 Todaysworld 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 dont 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.

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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 position

7.3. Conclusion

As my project, mostly people invest in stock exchanges. People invest in different market like

equity, 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 got

a chance for knowing and analyzing the Financial market.. From the survey, I found that India

info line deals in currency market, equity market, commodity market, mutual funds, loans and

insurance. .India Info line provides very good services to its customers. From the survey, I found

that People invest in mutual funds more with India Info line. I found that India info line is in the

top three positions in the share market.

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CHAPTER-8

Bibliography

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Bibliography

www.indiainfoline.com

www.nse.com

www.5paisa.com

WWW.ONLINERESEARCHONLINE.COM

Books Source

Kothari,C.R(2011,Research Methodology,Kalyani

Web reference for Literature Review

Clark jack (1986) Francis, lnzlestrrrents - Analysis and Management, MC Grew Hill,

International Editions.

Scott Davids. And Edward William (1990), Ulzderstrrrldilzg and Managing lnz? estr~rerrtrlsk

and return, MC. Grew Hill Book Co. (U.K.) Ltd., London
http://www.indiainfoline.com/http://www.indiainfoline.com/http://www.nse.com/http://www.nse.com/http://www.5paisa.com/http://www.5paisa.com/http://www.onlineresearchonline.com/http://www.onlineresearchonline.com/http://www.onlineresearchonline.com/http://www.5paisa.com/http://www.nse.com/http://www.indiainfoline.com/

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Annexure

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QUESTIONNAIRE

Q1. 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?

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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 ( )

Documents

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