• Introduction • Need for the Study • Objectives of the Study • Methodology • Limitations of the Study

 Introduction  Need for the study  Objectives of the Study  Methodology  Limitations of the Study

INTRODUCTION OF STOCK MARKET

Share market is the market where company's shares are traded. Through these markets registered company's share are traded. When companies want capital than they have then they go for the public issue.

The project is mainly to study the activities and prospects of stock markets. The past decade has been a golden age for stock exchange in India. It is poised to dominate the future of corporate finance in India, thanks to reforms in stock market. Earlier in the initial days of secondary market, trading on Stock Exchanges in India used to take place through open outcry without use of information technology for immediate matching or recording of trades. With the advent of technology, the trading, in securities is done on-line with the help of VS AT terminals. Since 1995, trading in securities is screen based (on-line) trading which eliminated the need for trading floor. Since 2000, .internet-based trading has also made an appearance in India.

The secondary market consists of 23 stock exchanges including the National Stock Exchange and the over-the-counter Exchange of India (OTCEI) and inters Connected Stock Exchange of India Ltd. The secondary market provides a trading place for the securities already issued to be bought and sold. It also provides liquidity to the initial buyers in the primary market to re-offer the securities to any interested buyer at any price, if mutually accepted. An active secondary market actually promotes the growth of the primary market and capital formation because investors in the primary market are assured of a continuous market and they can liquidate their investments in the stock exchange.

The secondary market consists of 23 stock exchanges including the National Stock Exchange and the over-the-counter Exchange of India (OTCEI) and inters Connected Stock Exchange of India Ltd. The secondary market provides a trading place for the securities already issued to be bought and so. It also provides liquidity to the initial buyers in the primary market to re-offer the securities to any interested buyer at any price, if mutually accepted. An active secondary market actually promotes the growth of the primary market and capital formation.

INTRODUCTION OF ONLINE TRADING

In the share market trading before advent of online trading ' trading used to be done with bonds (registration form of the share to buyer). On process trading was done through phones. After allocating of share to the people then registration forms used to sended to shareholders so it used to be done very slowly. It used to take very long time to trade the shares.

After adventing of online trading purchase and sale of shares had become very easy now it is being bone with in fraction of seconds. Actually trade to trade time is two days but now people doing trade without consideration of trade to trade time. Shares are being transferred with rapid fast but it takes two days time to be registered.

The number of online "do-it-yourself has grown at a remarkable rate since the first electronic brokerage opened with virtual doors in 1994. This brokerage have attracted over 6 million investors in less than five years, now accounting for over 33%of retail stock trades. While the numbering of online trading accounts represents just 12.5% of all accounts, that proportion is expected to increase to 33.2% by the end of 2005 as reported fortune magazine on (October 2005) the number of e-brokerage has also grown from 12 in 1994 to more than 200 in 2004. With increased competition, commission per trade has fallen dramatically, roping an average of 60, present in 2002 and levelling off 2004. These developments are commonly attributed to the efficiency of "friction-free" electronic market that lower transaction information processing cost by reducing human intermediation. But how efficient electronic market, really? Rating of e-brokerages typically evaluates ease of use quality of research, reliability, commission rates, customer service and reporting. These studies however, have given insufficient attention to some less obvious factors, including timeless of transaction execution and the ability of investors to obtain the "best prices". These factors heavily influence investors total transaction costs.

A closer analysis of the online trading process reveals that, in many cases the only thing that has changed as for as investment concerned is the interface, which now involves web-based interaction. Despite proposed change in the securities trading process and

3 introduction of electronic trading system as optima rk, other process determining market efficiency order flow, price discovery and order execution-remain virtually unchanged.

In order to evaluate the true costs of on-line transaction we must separate the efficiency, "Perceived" by investors from the real efficiency of the transaction and patterns of information flow beyond the interface itself. To- understanding the difference between perceived and real efficiency we have examined how the trade process structured (often invisible to the investor). Perceived efficiency determine largely by information provided by e-brokerage that customer can verify, such as commission rates, and research, and it tempered by investors attitude about risk and the degree to which they trust online brokerage. In contrast, real efficiency influenced by market structure and related transactional arrangement. For example, overall cost structure for the investors can differ depending upon how intermediaries coordinates among themselves.

Global scenario: Online trading has become very popular in the last couple of years because of the conveniences of ease and use. The numerous companies have gone existed for as long as we can remember and talk about it. We are referring to the trade in the financial dealings. In current context the trading is buying and selling of financial services including security through online trading has basically replaces a phone call with internet. Instead of interacting with the brokers over the phones the customer is clicking the mouse through online trading.

Online Trading in India: India ranks amongst the top 10 companies in terms of market capitalization of its stock market. India is gradually opening its stock market to foreign investors. A beginning was made on 27 T January,2000. When the chairman of securities and exchange board of india (SEBI) authorized stock exchange to provide internet based 'trading services to investors an also announced that foreign companies and individuals could now trade on indian aced against stocks to increase purchasing power.

NEED FOR THE STUDY

The need for the study is felt, as many people in India are unaware of trading process in stock market.

Difficulties like lack of easy access to the market, inadequacy of the market infrastructure, and problems in locating the right intermediaries, lack of guidance and advice inhibited the investors from investing in the stock market. At least to have the basic knowledge about the various functions of the stock exchanges is very important.

After liberalization in 1991, our stock markets experienced drastic changes due to the setting up of SEBI in 1992, integration of markets, new technology in trading, introduction of on-line trading, foreign participation etc. these led to the development of stock market.

The actual process of on-line trading through which immediate access on the market watch available to the client in placing orders for buying or selling of shares is to be known.

SCOPE OF THE STUDY

To study about the On-Line trading process conducted by NSE through the technology it is using.

OBJECTIVES

1. To understand the on-line trading process in Steel City Securities Limited, Visakhapatnam. 2. To understand the process involved like dematerialization. 3. To know the various scrip‟s that are traded regularly in the stock market. 4. To understand the technology process used in online trading. To understand the process of online trading, derivatives, commodities in market of NSE.

METHODOLOGY

The methodology implemented for the on-line trading process is logging on to the NEAT screen by filling the User ID, Trading Member ID, Password and New Password. After logging on the Title bar, Ticker Window, Tool Bar, Market Watch, Inquiry Window, Order/Trade Window and Message Window is displayed. Using these windows, the user can buy or sell the shares by placing the orders, quoting the price and the quantity of the shares. For example, Fig.1 represents NEAT Login Screen and the Fig.2 NEAT Market Watch Screen.

Primary Data:-

Primary data was for different scrip were taken from three different sectors and studied the factors that are affecting the scrip movement. The primary data was collected by watching the daily trade.

The information regarding the online trading is collected from

 Watching the on-line trading live.  Collecting information from the head of each department and from the staff working in those departments.  Participating in mock trading conducted by National Stock Exchange (NSE) of India Limited.

Secondary data:- Secondary data is already published data collected for some purposes other than the one confronting the researcher at a given point of time. The secondary data can be gathered from various sources like books, journals, research agencies etc.

For this project the secondary information is collected from the various sources like “Business Line” & “Economic Times” (news papers); and the NSE and BSE websites in the internet.

The information regarding the online trading is collected from

 Referring the Capital Market (dealer‟s) module workbook published by National Stock Exchange of India Limited.  Interacting with the operators at the computer terminals and the clients trading in Steel City Securities Limited.

LIMITATIONS

The online trading process is unaware by the public the intrinsic value of share cannot be found out..  The ease of online trading can give the investor a false sense of capital market.  The chat rooms may provide misleading information  The failure of these systems create problem in collecting Primary data.  As the investors are not completely unaware of the proceedings of procedure in online trading.  The process is complicated in nature of online trading.

 Industry profile

 Company profile

INDUSTRY PROFILE

STOCK EXCHANGES IN INDIA

At the end of the June 1989, there were 18 recognized stock exchanges in India. Among the 18 stock exchanges, the first organized stock exchange set up at Bombay in 1857 is distinguished not only by its size but also it has been recognized permanently, while the recognition for other markets is renewed every 5 years. Stock markets are organized either as voluntary, non-profit making associations (Bombay, Ahmedabad, Indore) or public limited companies (Calcutta, Delhi, Bangalore) or company limited by guarantee (Madras, Hyderabad).

In India, the growth of stock exchanges has been linked to the growth of corporate sector. Though a number of stock exchanges were set up before independence but, there was no All India legislation to regulate they‟re working. Every stock exchange followed its own methods of working. To rectify this situation, the SECURITY CONTRACTS (REGULATIONS) ACT was passed in 1956.

In 1965, 22 separate provincial stock exchanges were merged into 3 regional stock exchanges and in 1973 these, in turn, were combined to form the National Stock Exchange (NSE) under the title of the stock exchange that has trading floors in many former provincial center. At present, there are 26

Stock exchanges in our country. The over-the counter exchange of India began its operations in 1992. Since 1995, trading in securities is screen based (on-line).

BOMBAY STOCK EXCHANGE (BSE):

Bombay stock exchange is the first organized stock exchange set up at Bombay in 1857. It is the premier or apex stock exchange in India as it is distinguished by not only its size but also it has been recognized permanently while recognition of other stock exchanges is renewed every 5 years. It is the oldest stock market.

Earlier BSE was organized as voluntary non-profit making association of brokers to regulate and protect their interest. After the Security Contracts (Regulation) Act was passed in 1956, BSE was first recognized on a permanent basis in 1957. Its business is no longer confined to Mumbai alone; at the end of 1957, there were 100 other cities in which it had set up business.

Bombay Stock Exchange raised the threshold limit for listing to Rs.10 crores, moved on to weekly settlement and quicker actions for each settlement. Settlement is through the clearinghouse. 12 days carry forward is allowed on BSE. Index in BSE is „SENSEX‟. BSE membership fee in 1857 was just Rs 1 and now it in about Rs. 2 crores.

The number of companies quoted on the stock exchanges is more than 8,000 of which those listed in BSE are 5,000. The capital listed in Bombay stock exchange accounted for about 40% of the overall capital listed on all the stock exchanges whereas, its share of the market capitalization amounted to around 90%. In BSE the total number of companies listed and total number of stocks issued are higher than any other stock exchange.

BSE went over to electronic trading system in Jan 1995 called „Bombay Online Trading” (BOLT) system and this become fully operational in May 1995. The BSE has allowed expansion of online trading system to members of other stock exchanges and have terminals in other cities since August 1995, to counter the move of the country –wise network of terminals by National Stock Exchange. The daily turnover in BSE varies from Rs. 400-800 crores. Brokers trading in NSE follow BSE to know the market.

NATIONAL STOCK EXCHANGE (NSE):

12 fully automated screen based trading system with national research. The exchange had brought about unparalled transparency, speed and efficiency, safety and market integrity. It has setup facilities that serve as a model for the securities industry in terms of systems, practices and procedures. NSE has played a catalytic role in reforming the Indian securities market in terms of micro structure, market practices and trading volumes.

NSE is a complete capital market prime mover. Its wholly-owned subsidiaries, NSCCL provides clearing and settlement of securities, India Index Services and Products Limited (IISL) provides indices and index services with a consulting and licensing agreement with standard and poor‟s (S&P), and NSEIT LTD forms the technology strength that NSE works on.

NSE LOGO

The logo of the NSE symbolises a single nationwide securities trading facility ensuring equal and fair access to investors, trading members and issuers all over the country. The initials of the Exchange viz., N, S and E have been etched on the logo and are distinctly visible. The logosymbolises use of state of the art information technology and satellite connectivity to bring about the change within the securities industry. The logo symbolises vibrancy and unleashing of creative energy to constantly bring about change through innovation.

EQUITIES:

NSE started trading in the equities segment (Capital Market Segment) on 3rd November, 1994 and within a short span of one year became the largest exchange in India in terms of volumes transacted.

The equity section provides with an insight into the equity segment of NSE and also provides real time quotes and statistics of the equities market. In depth information regarding listing of securities, trading system and processes, clearing and settlement, risk management, trading statistics etc., are available here.

FUTURES AND OPTIONS:

NSE commenced trading in derivatives with the launch of index futures on 12th june 2000.The future contracts are based on the popular bench-mark S&P, CNX, NIFTY INDEX. The exchange introduced trading in index options (also based on NIFTY) on 4th June, 2001. NSE also became the first exchange to launch trading in options on individuals securities

14 from 2nd July, 2001. Futures on individual securities were introduced on 9th November, 2001. Futures and options on individual securities are available on 186 securities stipulated by SEBI.

National Securities Clearing Corporation Limited (NSCCL):

NSCCL is a wholly subsidiary of NSE. It was a setup to bring and sustain confidence in clearing and settlement of securities to promote and maintain, short and consistent settlement cycles, to provide counter-party risk guarantee and to operate a tight risk containment system. NSCCL carries out the clearing and settlement of the trades executed in equities and derivatives segments and operates Subsidiary General Ledger (SGL) for settlement of trades in Government securities.

Products and Services in NSCCL: -  Clearing and settlement  Guarantee  Risk Management  Direct Payout to investors  Constituent SGL account  Mutual Fund Service system

INITIAL PUBLIC OFFERINGS (IPO):

A corporate or company may raise capital in the primary market by way of an initial public offer, rights issue or private placement. An IPO is the selling of securities to the public in the primary market. It is the largest sources of funds with long or indefinite maturity for the company.

Subsidiaries of NSE: NSCCL, IISL, NSEIT, NSDL, Dot Ex Intl. Ltd (Dot Ex).

Partners of NSE:  Clearing Members  Clearing Banks  Professional Clearing Members  Depositories  Custodians

Clearing and settlement (Equities):

NSCCL carries out clearing and settlement functions as per the settlement cycles of different sub-segments in the equity segment.The clearing function of clearing corporation is designed to work out.

Clearing members:

Clearing members means a member of a corporation who clears and settles deals through the clearing corporation.

In the F&O segment, trading member need not necessarily clear their own deals but can select another clearing member or a professional clearing member to clear and settles their dues, in capital markets its not the same.

Clearing Banks:

NSCCL offers settlement of funds through 13 clearing banks namely Canara Bank, HDFC Bank, Indus Indian Bank, ICICI Bank, UTI Bank, Bank of India, IDBI Bank, and Hong Kong and shanghai Banking Corporation Limited, Kotak Mahindra Bank, Standard Charted Bank, Union Bank of India, SBI and Citi Bank.

Member may open their clearing accounts with any one bank for the purpose of settlement of exchange transactions.

Professional Clearing Members:

Professional Clearing Members (PCM) are clearing members who are not trading members. They are typically Banks, custodians etc., who clears and settled trades executed for their clients (individual, institutions etc,).

The functions and responsibilities of the PCM would be similar to custodian. PCM‟s may also under take clearing and settlement responsibility for trading members.

Depositaries:

In order to promote dematerialization of securities, NSE joined hand with leading financial institutions to establish National Securities Depository Ltd. (NSDL), the first depository in the country with the objective of enhancing the efficiency in settlement systems as also to reduce the manace of the fake/forged and stolen securities. The second depository in the country, CDSL, promoted by the BSE and few commercial banks, was graded certificate of commencement of business.

NSCCL has established connectivity with both the depositories for electronic settlement of securities.

Custodians: Custodians are clearing members but not trading members. They settle trades on behalf of their clients that are executed through other trading members. A trading member may assign a particular trade to a custodian for settlement.

The following Custodians are emparelled with NSCCL:  ABN Amro Bank N.V.  Citi Bank N.V.  Deutsche Bank A.G.  HDFC Bank  Hong Kong and Shanghai Banking Corporation Ltd  ICICI Ltd

 Indus Ind Bank  Infrastructure Leasing and Financial Services Ltd  Standard Charted Bank  State Bank of India  Stock Holding Corporation of India Ltd NSE‟s MISSION: NSE's mission is setting the agenda for change in the securities markets in India.

The NSE was set-up with the main objectives of:  Establishing a nation-wide trading facility for equities, debt instruments and hybrids,  Ensuring equal access to investors all over the country through an appropriate communication network,  Providing a fair, efficient and transparent securities market to investors using electronic trading systems,  Enabling shorter settlement cycles and book entry settlements systems, and meeting the current international standards of securities markets.

The standards set by NSE in terms of market practices and technology has Become industry benchmarks and are being emulated by other market Participants. NSE is more than a mere market facilitator. It's that force which is Guiding the industry towards new horizons and greater opportunities.

CORPORATE STRUCTURE OF NSE:

NSE is one of the first de-mutualised stock exchanges in the country, where the Ownership and management of the Exchange is completely divorced from the right to trade on it. Though the impetus for its establishment came from policy Makers in the country, it has been set up as a public limited company, owned by the leading institutional investors in the country.

NSE Technology

NSE believes that technology 1. Will save competitive edge 2. Ensure timeliness 3. Give satisfaction in customer service. 4. Change the shape of the securities industry 5. Provide innovation sustained investment in technology.

It uses participation from around 400 cities spread all over the country is possible because of satellite communication technology. Up gradation of trading hardware, NSE can handle up to 1 million trades per day. NSE has also put in place NIBIS (NSE's Internet Based Information System) for on-line real-time dissemination of trading information over the internet. In order to capitalise on in-house expertise in technology, NSE set up a separate company, NSE.IT, in October 1999.

This is expected to provide a platform for taking up new IT assignments both within and outside India and attaining global exposure. NEAT is a state-of-the-art client server based application. At the server end, all trading information is stored in an in-memory database to achieve minimum response time and maximum system availability for users. The trading server software runs on a fault tolerant STRATUS mainframe computer while the client software runs under Windows on PCs. The telecommunications network uses X.25 protocol and is the backbone of the automated trading system.

Each trading member trades on the NSE with other members through a PC located in the trading member's office, anywhere in India. The trading members on the Wholesale Debt Market segment are linked to the central computer at the NSE through dedicated 64Kbps leased lines and VSAT terminals. These leased lines are multiplexed using dedicated 2 Mbps, optical-fibre links. The WDM participants connect to the trading system through dial-up links. The Exchange uses powerful RISC -based UNIX servers, procured from Digital and HP for the back office processing. The latest software platforms like ORACLE 7 RDBMS, GUPTA - SQL/ORACLE FORMS 4.5 Front - Ends, etc. have been used for the Exchange applications.

The Exchange currently manages its data centre operations, system and database administration, design and development of in-house systems and design and implementation of Telecommunication solutions. NSE is one of the largest interactive VSAT based stock exchanges in the world. Today it supports more than 3000 VSATs and is expected to grow to more than 4000 VSATs in the next year.

NSE- network is the largest private wide area network in the country and the first extended C- Band VSAT network in the world. Currently more than 9000 users are trading on the real time-online NSE application. There are over 15 large computer systems, which include non-stop fault-tolerant computers and high-end UNIX servers, operational under one roof to support the NSE applications. This coupled with the nation wide VSAT network makes NSE the country's largest Information Technology user.

In an ongoing effort to improve NSE's infrastructure, a corporate network has been implemented, connecting all the offices at Mumbai, Delhi, Calcutta and Chennai. This corporate network enables speedy inter-office communications, data, and voice connectivity between offices. In keeping with the current trend, NSE has gone online on the Internet. Apart from having a 2mbps link to VSNL and our own domain for internal browsing and e- mail purposes, we have also set up our own Web site. Currently, NSE is displaying its live stock quotes on the web site (www.nseindia.com) which are updated online.

Circuit Breakers:

The Exchange has implemented index-based market-wide circuit breakers in compulsory rolling settlement with effect from July 02, 2001. In addition to the circuit breakers, price bands are also applicable on individual securities.

Index-based Market-wide Circuit Breakers:

Movement of either the BSE Sensex or the NSE S&P CNX Nifty, whichever is breached earlier, triggers the market-wide circuit breakers.

 In case of a 10% movement of either of these indices, there would be a one-hour market halt if the movement takes place before 1:00 p.m. In case the movement takes place at or after 1:00 p.m. but before 2:30 p.m. there would be trading halt for ½ hour. In case movement takes place at or after 2:30 p.m. there will be no trading halt at the 10% level and market shall continue trading.  In case of a 15% movement of either index, there shall be a two-hour halt if the movement takes place before 1 p.m. If the 15% trigger is reached on or after 1:00p.m. but before 2:00 p.m., there shall be a one-hour halt. If the 15% trigger is reached on or after 2:00 p.m., the trading shall halt for remainder of the day.  In case of a 20% movement of the index, trading shall be halted for the remainder of the day. These percentages are translated into absolute points of index variations on a quarterly basis. At the end of each quarter, these absolute points of index variations are revised for the applicability for the next quarter. The absolute points are calculated based on closing level of index on the last day of the trading in a quarter and rounded off to the nearest 10 points in case of S&P CNX Nifty.

Internet Trading at NSE

NSE became the first exchange to grant approval to its members for providing Internet based trading services. In line with SEBI directives, NSE has issued circulars detailing the requirements and procedures to be complied with by members desirous of providing Internet based trading and services.

The volume of daily trade in NSE is around Rs.5000 to Rs.8000 crores. The market capitalization of listed companies is Rs.2.52 lakh crores. There are more than 2000 permitted securities for trading but the daily turnover was done around 800 securities in NSE.

Operations of the National stock market system:  Trading operations

 Post trading operations  National clearing and settlement facilities

National stock exchange will operate two segments, debt market and equity market and operations in both are separately maintained. All medium and large sized companies with paid-up equity of Rs.10 crores and above eligible to be listed on regular stock exchanges can be listed on NSE. The index in NSE is „NIFTY‟.

NSE started Online Scripless Trading in India in the year 1994. Trading system used in NSE online trade in „National Exchange for Automated Trading‟ (NEAT) system. Trading network can be spread all over the country depending on the electronic link through the satellite. A rolling settlement system operates in NSE with settlement period of T+1. Funds and securities are exchanged by passing electronically proper debit and credit entries. Volume of NSE is more and access is faster in NSE. NSE is the market leader with over 40% of total turnover in 1999-2000.

NIFTY:

It stands for National Index 50, which gives the stock market trends of NSE by selecting top 50 companies based on capitalization.

Benefits of Stock Exchange: The benefits of stock Exchanges can be studied under the following headings:

1. Advantages to the companies:  Ready markets for securities  Increase in price.  Increase in goodwill.  Agent between companies and the investors.

2. Advantages to the investors:  Safety of investment  Best use of capital

 More collateral value.  Publication of price list of securities  Powerful hedge against inflation.

3. Advantages to the society:  Helpful in industrialization  Increase in rater of capital formation.  Savings are encouraged.  Incentive for efficiency. Government can raised funds for imports projects. Provides a mirror to reflect general econo

FINANCIAL MARKETS:

Finance is the integral part of modern business. Financial markets refer to the institutional arrangements for dealing in financial assets and credit instruments of different types, such as currency cheques, bank deposits bills, etc.

The main functions of the financial markets are: (i) To facilitate creation and allocation of credit and liquidity; (ii) To serve as intermediaries for mobilization of savings; (iii) To assist the process of balanced economic growth; (iv) To provide financial convenience; (v) To cater to the various credits needs of the business houses.

TYPES OF FINANCIAL MARKETS:

Based on credit requirement for short-term and long-term purposes, financial markets are divided into two categories:

1. Money Market 2. Capital Market

FINANCIAL MANAGEMENT

Financial Institutions Financial Markets Financial Instruments Financial Services

Money Market Capital Market

Organized Unorganized

Stock Market Term Lending Institutions

Gift edged Securities Industrial market securities market

Primary market Secondary market

Stock exchange

NSE BSE OTCEI OTHERS

Wholesale debt market Capital market segment segment

Cash Segment Derivative segment

Future Options Interest Rate

Stock Index Call Put

MEANING OF CAPITAL MARKET:

The term ‟capital market‟ refers to the institutional arrangements for facilitating the borrowing and the lending of long-term funds. It is concerned with those private savings, individuals as well as corporate, that are turned into investments through new capital issues and new public loans floated by government and semi-government bodies.

FUNCTION OF CAPITAL MARKET: The major functions performed by a capital market are: i. Mobilization of financial resources on a nation-wide scale. ii. Securing the foreign capital and know how to fill up the deficit in the required resources for economic growth at a faster rate. iii. Effective allocation of the mobilized financial resources, by directing the same to projects yielding highest yield or to the projects needed to promote balanced economic development.

STRUCTURE OF THE INDIAN CAPITAL MARKET:

The capital market in India may be classified into two categories, viz; organized and unorganized. In the organized sector of capital market demand for long-term capital comes from corpora enterprises, public sector enterprises, government and semi-government institutions. The sources of supply of funds comprise individual investor corporate and institutional investors, investment-intermediaries, financial institutions, commercial banks and government.

In India, even the organized sector of capital market was ill developed till recently because of the following reasons: i. Agriculture was the main occupation, which did not lend itself to the floatation of securities. ii. The foreign business houses hampered the growth of securities market

iii. Managing agency system also accounted for ill development of capital market as managing agents performed both activities of promotion and marketing of securities. iv. The investment habit of individuals. v. Restrictions imposed on the investment pattern of various financial institutions.

The unorganized sector of the capital market consists of indigenous banker; and private moneylenders. The main demand in the unorganized capital market comes from the agriculturists, private individuals for consumption rather than production and even small traders. The supply of money-capital comes, usually from own resources of moneylenders and falls short of the requirements made on them.

MARKETS FOR CORPORATE SECURITIES: The corporate securities, viz; bonds or debentures, preferred stock commonly called preference shares and common stock or equity shares, are traded in carefully regulated money markets. The markets for the three types of corporate securities include: 1. The Primary or New Issue Markets 2. The Secondary Markets 3. over-The Counter Markets 4. On-Line Scrip less Trading Market.

The primary or the new issue market deals with the offer and exchange of stocks or bonds that have never been previously issued. The securities that have been previously issued are traded in the secondary markets, which include the organized stock exchanges and over the counter market. The Over-the Counter Exchange of India (OTCEI) began its operations in the year 1992 as a second-tier bourse, which permits smaller companies to raise funds. In addition to the markets, the National Stock Exchange has also started on-line scrip less trading in India in the year 1994.

COMPONENTS OF CAPITAL MARKET:

Supply of Components of Capital

Money Capital Market

Individuals 1. New Issue Individuals Corporations Market Corporations Institutions 2. Stock Institutions

Banks Exchange Entrepreneurs Government 3. Financial Government Institutions Investors Lenders Clearing house for Long- Borrowers Sellers of term Capital Buyers of Money- Money Capital Capital Market Mechanism Capital

THE NEW ISSUE MARKET OR PRIMARY MARKET:

The new issue market represents the primary market where new securities, i.e.,

Shares or bonds that have, never been previously issued, are offered. Both the new companies and the existing ones can raise capital on the new issue market.

The two faces of this market, i.e. supply and demand, are represented by the issuing companies and the investors respectively. But then the organization of the new issue market is not complete without the specialized agencies, intermediaries and institutions, etc., which promote issues of new securities and help in selling, transferring, underwriting etc. These agencies include financial institutions, underwriters, brokers, merchant bankers, etc.

The sentiment in the stock market influences the activity in the new issue market. The stock market is more sensitive and reacts fast to the changes in the economic, political and business conditions of a country. Then this affects the new issue market also.

.STOCK MARKET OR SECONDARY MARKET:

Stock market represents the secondary market where existing securities (shares and debentures) are traded. Stock exchange provides an organized mechanism for purchase and sale of existing securities. By now, we have 23 stock exchanges in our country.

Stock exchanges are organized and regulated markets for various securities issued by corporate sector and other institutions. The stock exchanges enable free purchase and sale of securities as commodity exchange allow trading in commodities.

FUNCTIONS OF STOCK EXCHANGE:

The stock exchanges play an important role in the economic development of a country. The importance of stock exchange will be clear from the functions they perform and discussed as follows: 1. Ensure Liquidity of Capital 2. Continuous Market for Securities 3. Evaluation of Securities 4. Mobilizing Surplus Savings 5. Helpful in Raising New Capital 6. Safety in Dealings 7. Listing of Securities 8. Platform for Public Debt 9. Clearing House of Business Information

LISTING OF SECURITIES:

Listing of securities means permission to quote shares and debentures officially on the trading floor of the stock exchange. Not every security issued by companies can be traded at a stock exchange. The stock exchanges fix certain standards, which the company must fulfill before getting the securities listed.

Requirements for Listing:

Any company intending to get its securities listed at an exchange has to fulfill certain conditions. The following information‟s must be filed with exchange for getting a security listed: i. Memorandum and Articles of Association. ii. Copies of all prospectuses or statements in lieu of prospectuses. iii. Copies of Balance Sheets, audited accounts, agreements with promoters, underwriters, brokers, etc. iv. Letters of consent from Controller of Capital issues now replaced with SEBI. v. Details of share and debentures issued and shares forfeited vi. Details of issue of bonuses and dividends declared. vii. History of the company in brief. viii. Agreement with managing director, etc. ix. An undertaking regarding compliance with the provisions of the Companies Act, 1956 and Securities Contracts (Regulation) Act, 1956 as well as rules made therein. x. A list of the highest ten holders of each class or kind of securities of the company.

The stock exchanges are empowered to withdraw or suspend the admission granted for trading following any breach of conditions.

Advantages of Listing: Following are some of the advantages of listing securities: 1. Publicity of Securities 2. Protection of Investors‟ Interest 3. Ensures Liquidity 4. Better Goodwill

PROCEDURE FOR DEALING AT STOCK EXCHANGES:

The buying and selling at stock exchanges is not allowed to outsiders. They have to approach brokers who are members of the exchange and the dealings can only be through them. The following procedure is followed for dealings at exchanges.

1) Selection of a Broker: The intending investor or seller may approach his bank for this purchase. The banks have appointed their own brokers at exchanges and they contact for dealings on behalf of their customers. On a recommendation from there bank the client‟s account is opened by the broker. The bank assures the financial condition of the client.

2) Placing an Order: After selecting the broker the client places an order for purchase or sale of securities. The broker also guides the client about the type of securities to be purchased and the proper time for it.

3) Making the Contract: The trading floor of the stock exchange is divided into different parts known as trading posts. Different posts deal in different types of securities. The authorized clerk of the broker goes to the concerned post and expresses his intention to buy and sell the securities. A deal is struck when the other party also agrees. The bargain is struck by an outcry mentioning the price and number of securities contracted by both the clerks. The bargain is noted by both the parties in their notebooks. The slip giving brief details of the bargain is put in a box for making announcement in the official price list for publicity.

4) Contact Note: The buying and selling brokers prepare notes after their mutual consent next day. The seller is sent a selling note and the buyer is sent a buying note. The details of securities traded are given mentioning their number price, etc.

5) Settlement: The spot dealings are settled there in full. The selling broker hands over the transfer form and share certificates to the buying broker after receiving the price.

The settlement for ready delivery and forward contracts is done with a different procedure. a. Settlement of Ready Delivery Contracts. The settlement in different stock exchanges is done between 3 to 7 days of the transaction. If the settlement is done by giving actual delivery of securities on receiving the price, it is called liquidation in full. In another method the dealings are squared by adjusting price differences only.

b. Settlement of Forward Delivery Contracts. The forward delivery contracts are done for speculative purposes. Only the active and broad market securities are traded in forward contracts. The settlement of forward contracts can be done in any of the three ways: i. Liquidation in fall. ii. Liquidation by payment of differences iii. Carry over to the next settlement.

6) Rolling Settlement: Rolling settlement is an important measure to enhance the efficiency and integrity of the security market. The shift from the traditional account period settlement marks an important change in the market design and age old practices. In January, 1998, SEBI had introduced rolling settlement on a voluntary basis on the stock exchanges for securities, which were eligible for dematerialized trading. However, as there was hardly any response to the voluntary scheme, SEBI introduced compulsory rolling settlement initially for 10 scrips in January 2000 and then increased the number of scrip‟s in a phased manner to 163 by May 2000 and further to 414 scrip‟s from July 2,2001.

COMPANY PROFILE

Members of BSE / NSE CM /NSEF&O/CDSL

Well-respected stock broking house with strong position in Institutional Broking.

ACC is highly capitalized firm in terms of net worth to suit its institutional clients needs

Founded by Ashvin Choksi & Dipikachoksi in 1984

Mrs.DipikaChoksi was one amongst the first lady to head a Broking outfit as early as

1984 in a totally male dominant market space.

Started as a small broking unit catering to individual retail investors with just two people

running the show. Constant focus on Honesty, transparent business practices, and

research based investing, and state of the art technology have enabled us to be a well

respected broking outfit.

Institutional Business unit has relationships with all leading Financial Institutions and is

regarded as a house with a "Strong Market research capabilities"

Retail business unit provides investment solutions to thousands of investors through it

Network Partners & Branches. Through depository operations also we have thousands of

depositors who 'share bank' with us. ACC provides Advice Based Broking, Depository

Services, Equity Trading, Derivatives trading, and Mutual Fund Services.

We find our strength in team of talented and confident individuals from diversified

backgrounds. Qualified professionals under the able leadership of promoter cany out core

functions.

ACC believes in continuous training and adoption of best management practices.

ACC believes in being a respected financials services company, focusing on investment

advisory services, value added qualitative research and to become a partner of client in his

financial matters.

Some values & beliefs –

1.Client first (Client is the driving force behind everything we do)

2. Ethics, Honesty and transparent business practices

3. Respect for all - we respect the dignity of each individual, whether professional,

employee, associates, business partners, Clients or a member of the mass

4. Focus on qualitative research and give sound and filtered research ideas.

5. .Cutting Edge technology to aid processes and ensure excellent service.

6. Continuous Training to adapt to the ever-evolving best management practices.

Services offered:

Trust, Transparency and Technology are the policies we provide to our clients. Our motto is to serve best to the Client. We provide research reports to our clients on Daily basis, which is Fundamental and Technical. We give our clients a fruitful advice through SMS and Email. So our clients can gain more profit and maintain professional portfolio with us. We offer various products to our clients like Equity broking with both Exchanges, Derivatives, New issue, PMS, Mutual funds and Depositories. We Respect for professionals, associates and business partners also we understand the value of customers.

We provide our client's following services.  Equity Broking  Derivatives  Deposit  Mutual fund

Equity Broking: M/s A C Choksi Share Brokers Pvt Ltd. are member of Bombay Stock Exchange Ltd and National Stock Exchange. We provide to our client's research reports for technical and fundamental also SMS on daily basis so you can do Day trade or Delivery base trade as per your requirement. We provide you online trading system. We provide you client's friendly Brokerage.

Derivatives: M/s A C Choksi Share Brokers Pvt Ltd. are trading member of Bombay Stock Exchange Ltd and National Stock Exchange. We provide you online trading. Also we provide you client's friendly Brokerage.

Depository : M/s A C Choksi Share Brokers Pvt Ltd. Are member of CDSL. We are provide you risk free Depository system also we gave you various benefit for holding of your Demat Account with us.'

1. No Physical instructions are required for your sell obligation as we offer to all our client's the automated pay in facility for trades done through M/s A C Choksi Share Brokers Pvt Ltd. 2. Affordable transaction charges 3. You have an option of choosing the product offered BY CDSL.

EASI facility ' You can view, download and print updated holdings of your Demat Account with valuation of holding.

Easiest Facility ' You can submit your .own delivery instructions on the internet without the intervention of your DP. This is in addition to all the facilities provided under the 'EASE facility.

Daily services to customers : Morning News Technical Reports Fundamental Reports Recommendations.

Charges collect from the clients:

For derivatives - 0.03 paises per share

For equities - 0.05 paises per share

It began in 1983, founded by Mr.Ashvin Choksi and Mrs.Dipika Choksi in February 1984.ACC stated as small broking unit catering to individual retail investors. But with their vision and Constant focus on research based investing using stat -of-art technology. A.C.Choksi has grown into one of the county‟s most respected brokerage house. Today ACC provides investment solutions to over thousands of investors through its network partners and branches. We are also members of BSE, NSE CM, NSE F&O and CDSL.

DIRECTORS

 ASHVIN CHOKSI – MS (EE) Cleveland State University ,U.S.A. Chairman. Mr. Ashvin Choksi is promoter of acc. He started the business in 1984 along with co promoter Dipika choksi. Strategy, Systems, IT & Business administration are his forte. Honesty, transparency, integrity, client goodwill form the core of his business practice. His strong belief of service to the client is not only practiced by him but one can see his continuous efforts to inculcate similar values in employees of the organization.  DIPIKA CHOKSI – BA (economics) Bombay university, 2 yrs (child psychology) Miami U.S.A, Director Mrs. Choksi is the co promoter of ACC. Business administration, Institutional Sales, HR is her forte. Under her able guidance, ACC has achieved a strong Institutional Focus and footing. She is well respected for her

balanced judgments and valuable insights to management & HR issues. Her firm belief in PEOPLE is her philosophy.  BIMAL CHOKSI – director- B.Com. Bombay University, Global Capital Markets Diploma, New York U.S.A., FMB (S.P.Jain) Bombay. Bimal choksi grew up in an environment of Capital Markets around him. Marketing, Strategy & Public Relations are his forte working with extra ordinary untiring 3eal to give outstanding service at every process level to each and every client showing his true respect and value for his clients. His Dream is to have thousand plus points of presence by 2010 to aid vision of being a financial partner to every client.

Capital: The base capital is set up a trade center is 1 crore, ACC raised equity of Rs.105 lakhs during its incorporation. Earlier, ACC paid Rs.75 lakhs as base capital to NSE when it was set up. Every trade corporation has to maintain a reserve of some amount with NSE. At present, ACC has 7.5 crores as margin with NSE.

Working Staff: There is 80 to 100 staff employed in ACC. The staff draws a salary basing on the cadre they are employed. The salaries in ACC vary from Rs.2000 to Rs.20000 per month basing on the cadre of the employee.

Employee Recruitment: In ACC, the top managements select the candidate and the letter of appointment or rejection is sent to the Board of Directors. The Directors do the placement in ACC. The placement can either be in the Head Office or in any other branches of ACC.

Planning: It involves planning of Human Resource Department i.e. recruitment, selection, training etc. it also involves forecasting of personnel changing values, attitudes and behavior of employees.

Directing: In this company, the personnel manager co-ordinates various managers at different levels as the personnel functions are concerned. The wilting and effective co-operation of employees for the attainment of organization goals is possible through proper direction.

Controlling: In ACC, the top management does the controlling. In this aspect, they do auditing training programmes; directing moral surveys are some of the functions of the top management.

Recruitment: It is the process of searching for prospective employees and simulating them to apply for jobs in the organization. In ACC, if they want any person, they will give notification in newspaper in order to simulate eligible persons to apply for that job.

Employee Relation: The employee relations at all levels remains cordial. Training, Promotion and Transfers are done in ACC to motivate and increase the morale of the staff. All the employees in ACC from top to bottom perform their services with sincerity, hard work, dedication and with team spirit due to which ACC is considered as one of the best stock trading firm in India.

Selection, Placement and Training:

The top management shall do the selections. Placement is in the head office and in the branches of ACC, which are in different places. Selected candidates are placed in one of the branches of ACC and gives proper training.

Functions of the ACC: .  Advice Based investing  Depository services  Derivative Trading  Equity Trading  Internet Trading  Institutional Sales  Initial public Offerings  Mutual Fund Services  Nation Wide private Satellite Network  Top Quality Research  Trading strategies

SECURITIES TRADED IN ACC:

In ACC all the shares, scrips, stocks, bonds, debentures, derivatives, government securities, debt instruments etc. can be traded. But generally, trading is mostly done in scrips listed in NSE.

The government securities and the corporate securities can be traded through NEAT system in NSE. Only trading mechanism available in the debt market was the telephone market when NSE launched wholesale debt market (WDM) segment. This provides the only formal platform for trading of a wide range of debt securities. Though many trades in the gilt‟s takes place through telephone, a longer chunk of trades get rented through NSE brokers..

THE TRADING PROCESS:

A.C.CHOKSI SHARE BROKERS PRIVATE LIMITED provides stock trading services to its clients and members. It enables the clients to trade in NSE . Through the computer trading terminals in ACC, the client places an order to buy or sell the shares. After

38 the trade is confirmed, the client receives the settlement net positions. ACC collects the margin, brokerage, service tax & commission from the clients for the trades taking place in ACC.

ACC converts the physical shares into the electronic shares through D-MAT process. Clearing and settlement of trades, dematerialization of shares, providing market information to the clients are daily chores in ACC, apart form trading.

1. DOCUMENTATION:

The trading member or stockbroker shall enter into an agreement in the specified format provided by NSE with the client before accepting orders on latter‟s behalf. The said agreement shall be executed on non-judicial stamp paper of adequate value, duly signed by both the parties on all the pages. This agreement is known as „Member Constraint Agreement‟. Copy of this agreement is to be kept with the trading member permanently.

In addition to the agreement, the stock broker/trading member shall seek information from the client in the „Client Registration Application Form‟ obtaining information like investor risk profile, financial profile, social profile, investor identification details, family, income, PAN, employment, age, investments, other assets, financial liabilities etc. A stockbroker shall not deal knowingly, directly or indirectly, with a client who defaults to another stockbroker.

Similarly, the sub-broker shall enter into an agreement with the client before placing orders, with shall be executed on non-judicial stamp paper. The client should provide information to the sub-brokers in the „client registration application form‟.

STOCK EXCHANGES IN INDIA: Despite the fact that unorganized stock market existed in Calcutta since 1830, the first organized stock exchange was set up at Bombay in 1877 under the name of „Native Stock and Share Brokers Association‟. The next stock exchange which emerged in the country was „Ahmedabad Share and Stock Brokers Association‟ which was founded-in 1894. The third stock exchange was set up at Calcutta in the year 1908. Though some more stock exchanges were set up before independence but there was no All India Legislation to regulate their „working. Every stock exchange followed its own method of working. To rectify this situation and to regulate the working of stock exchanges in the country, the Securities Contract (Regulation) Act was passed in 1956. There were only nine recognized stock exchanges in the country up till1981-82.

RECOGNIZED STOCK EXCHANGES: There are 23 Stock exchanges in India. These were founded at different times, in different places, under different laws. However, all of them have now been recognized and regulating under a single law. Namely the Securities Contracts (Regulations) etc., 1956. No persons are, in principle, allowed to organize stock exchanges other than the recognized ones.

In December 1995, SEBI set up the Inter-Exchanges co-ordination Group, consisting of heads of all major stock exchanges and representations from regional stock exchanges, to help improve the compliance process among stock exchanges. There are stock exchanges in India. They are: Bombay Stock Exchange National Stock Exchange Ahmedabad Stock Exchange Bangalore Stock Exchange Bhubaneshwar Stock Exchange Calcutta Stock Exchange Cochin Stock Exchange Coimbatore Stock Exchange

Delhi Stock Exchange Guwahati Stock Exchange Hyderabad Stock Exchange Jaipur Stock Exchange Ludhiana Stock Exchange Madhya Pradesh Stock Exchange Madras Stock Exchange Magadh Stock Exchange Mangalore Stock Exchange Meerut Stock Exchange OTC Exchange Of India Pune Stock Exchange Saurashtra Kutch Stock Exchange Uttar Pradesh Stock Exchange Vadodara Stock Exchange

The most prominent among these are Bombay Stock Exchange and National Stock Exchange.

LEGAL FRAMEWORK:

In India, stock exchanges were almost self regulatory till 1988, supervised by Ministry of Finance under the Securities Contracts Regulation Act (SCRA). However, the stock exchanges were not discharging their self-regulatory role as well as a result of which malpractices crept into trading, adversely affecting investor‟s interests. SEBI has been setup to ensure that the stock exchanges discharge their self-regulatory role properly. Ever since SEBI began to monitor brokers, stock broking is emerging as a professional advisory service, in tune with the requirements of a mature, sophisticated, screen based, ring-less. Automated stock exchanges in the country in sharp contrast to traditional closed character as inherited family business. So we will discuss, the Indian Stock Broking system

42 here. The stock broking activity consists of various intermediaries. Let us discuss them one by one.

Stock Brokers: Stockbroker is a member of a recognized stock exchange who buys, sells or deals in securities. To work as a stockbroker registration with SEBI is mandatory. SEBI is empowered to impose conditions while granting the certificate of registration. Registration: A broker seeking registration with SEBI has to apply through the stock exchange of which he is member. For registering SEBI checks - eligibility of the applicant to become the member of stock exchange, has the necessary infrastructure to effectively discharge his duties, past experience etc. Every registered stockbroker is required to pay annual fee @ Rs. 5,000 for turn over up to Rs. 1 crore and 0.01% of turnover exceeding Rs. 1 crore. For calculating turnover underwriting and collection of deposits are not taken into account for the purpose of calculating the turnover. The authenticity of the annual turnover is to be certified by the stock exchange concerned.

Capital adequacy norms for brokers: An absolute minimum of Rs. 5 lakh as a deposit with the exchange is to be maintained by the members of the BSE & CSE and Rs. 3.5 lakh for DSE and ASE irrespective of volume of business. In case of other SE the minimum requirement is Rs. 2 lakhs. The security deposit kept by the members in the SE forms part of the base minimum capital; 25% of the base minimum capital is to be maintained in case with the exchange. Another 25% remains in the form of a long term fixed deposit with a bank on which the SE is given free lien. The remaining requirement is being maintained in the form of securities with a 30% margin. The securities should be in the name of the member and are pledged in favor of SE.

Additional capital related to Volume of Business: The additional or optional capital required from a member should, at any point of time, be such that together with the base minimum capital it is not less than 8% of the gross outstanding business in the exchange defined as the aggregate of up-to-date sales and purchases by a member broker in all the securities put together.

Duties of stock broker to the Investor: He should be faithful to the clients in his dealings with them and execute orders as per the instructions. I. He should issue to his clients a contract note without any delay for all transactions in the form specified by the SE. II. To avoid breach of trust, he should not disclose or discuss with any other person details of investment and transaction of clients. III. He should not mislead clients merely to generate business. IV. He should avoid dealing with a client who is a defaulter in his dealings with other brokers. V. When dealing with a client, he is required to disclose whether he is acting as a principal or as an agent. VI. He should not give investment advice to any client unless sought by him. VII. A stockbroker should have adequately trained staff and arrangements to render fair, prompt and competent services to his clients. VIII. He should extend full cooperation to other brokers in protecting the interest of his clients regarding their rights to dividends, bonus shares, rights issues and any other rights related to such securities.

It deals with legislative and regulatory provisions relevant from the viewpoint of a dealer. The legality of trading is through the various acts and regulators of stock exchange. Before 1992, the three principal acts governing the securities market were:

A. Acts related to stock trading are: a) The Capital Issues (control) Act, 1947, which restricted the issuers‟ access to the securities market and controlled the pricing of issues. b) The Companies Act, 1956, which sets out the code of conduct for the corporate, sector in relation to issue, allotment and transfer of securities, and disclosures to be made in public issues. c) The Securities Contract (Regulation) Act, 1956 that provides for regulation of transactions in securities through control over stock exchanges. d) d. SEBI Act, 1992: To ensure effective regulation of the market, SEBI Act, 1992 was enacted to empower SEBI with statutory powers for i. Protecting the interests of investors in securities; ii. Protecting the development of the securities market and iii. Regulating the securities market.

a. The Depositories Act, 1996 was passed to provide for the establishment of depositories in securities with the objective of ensuring free transferability of securities by dematerializing the securities. In addition, a number of acts like the Public Debt Act, 1942 the Income Tax Act, 1961 etc., have substantial bearing on the working of the securities market. B. Regulators: The responsibility for regulating the securities market is shared by Department of Economic Affairs (DEA), Department of Company Affairs (DCA), RBI; Securities Exchange Board of India (SEBI) and Securities Appellate Tribunal (SAT). 2.ON-LINE TRADING: NEAT System: The NEAT system supports an order driven market, wherein orders match on basis of time and price priority. All quantity fields are in units and prices are quoted in Indian Rupees. The regular lot size and tick size for various securities traded is notified by the exchange from time to time.

To bring in efficiency, transparency and depth in the market, NSE provides a fully automated screen based trading system known as NEAT. Its trading members use NEAT system for trading in the capital market segment in NSE. a. Logging on to the NEAT system:  User ID  Trading Member ID  Password  New Password This is a security system for customers accounts of shares. These password, user ID,

Trading ID, will be assign to every customer. No body can open the account without these security Identity numbers and proofs. This is just like a key to the account we need words to open the particular Demate account.

Filling of these blocks is innicial step to open the account of customer. After filling blocks with currect ID numbers then account will open then they can do the trading on that account. The page is shown below this is page appear on computer screen.

INVESTORS IDENTITY & SECURITY PAGE

TO OPEN THEIR DEMATE ACCOUNT

b. Market Phase: The system is normally made available for trading on all days except Saturdays, Sunday & other holidays. i. Pre-open phase: The pre-open period is relevant only in the normal market. Order matching takes place at the end of the session, based on which an opening price is computed & assigned to all trades of pre-open.

III. Opening: In this period, all orders that have been entered in the pre-open phase are matched. During this phase, the trading member cannot login to the system. If the member is already logged in the cannot perform trading activities till market is opened.

ii. Open Phase: The open period indicates the commencement of trading activity. To signify the start of a trading, a message is sent to all the trade workstation. Order entry is allowed when all the securities have been opened. During this phase, orders are matched on a continuous basis.

Trading in all the instruments is allowed unless they are specifically prohibited by the exchange. The activities that are allowed at this stage are:

 Inquiry: Inquiry about the market status, the shares and their prices.  Order entry: Placing an order to buy or sell the scrips by quoting the price and the quantity of the share.  Order modification: Modifying the order that has been already placed. The modification may be with respect to price or quantity.  Order cancellation: The order placed already can also be cancelled if the price or the quantity of scrip is not satisfactory. Order cancellation also includes quick order cancellation.

iii. Market close: Where the market closes, trading in all instruments for that market comes to an end. No further orders are accepted, but the user is permitted to perform activities like inquiries

Web page of the trading

ORIGIN OF STOCK EXCHANGES IN INDIA

Stock exchanges in our country. The over-the counter exchange of India began its operations in 1992. Since 1995, trading in securities is screen based (on-line).

BOMBAY STOCK EXCHANGE (BSE): Bombay stock exchange is the first organized stock exchange set up at Bombay in 1857. It is the premier or apex stock exchange in India as it is distinguished by not only its size but also it has been recognized permanently while recognition of other stock exchanges is renewed every 5 years. It is the oldest stock market.

50 confined to Mumbai alone; at the end of 1957, there were 100 other cities in which it had set up business.

NATIONAL STOCK EXCHANGE (NSE):

National Stock Exchange of India Ltd was started in 1992 with a paid-up equity of Rs.25 crores. The government recognized it in the same year and NSE started its operations in wholesale in Nov 1994. NSE is a India‟s leading stock exchange covering various cities and towns across the country. NSE was set up by leading institutions to provide a modern, fully automated screen based trading system with national research. The exchange had brought about unparalled transparency, speed and efficiency, safety and market integrity. It has setup facilities that serve as a model for the securities industry in terms of systems,

51 practices and procedures. NSE has played a catalytic role in reforming the Indian securities market in terms of micro structure, market practices and trading volumes.

NSE is a complete capital market prime mover. Its wholly-owned subsidiaries, NSCCL provides clearing and settlement of securities, India Index Services and Products Limited (IISL) provides indices and index services with a consulting and licensing agreement with standard and Poor‟s (S&P), and NSEIT LTD forms the technology strength that NSE works on.

NSE Logo

The logo of the NSE symbolizes a single nationwide securities trading facility ensuring equal and fair access to investors, trading members and issuers all over the country. The initials of the Exchange viz., N, S and E have been etched on the logo and are distinctly visible. The logosymbolises use of state of the art information technology and satellite connectivity to bring about the change within the securities industry. The logo symbolizes vibrancy and unleashing of creative energy to constantly bring about change through innovation.

EQUITIES:

NSE started trading in the equities segment (Capital Market Segment) on 3rd November, 1994 and within a short span of one year became the largest exchange in India in terms of volumes transacted.

FUTURES AND OPTIONS: NSE commenced trading in derivatives with the launch of index futures on 12th june 2000.The future contracts are based on the popular bench-mark S&P, CNX, NIFTY INDEX. The exchange introduced trading in index options (also based on NIFTY) on 4th June, 2001. NSE also became the first exchange to launch trading in options on individuals securities from 2nd July, 2001. Futures on individual securities were introduced on 9th November, 2001. Futures and options on individual securities are available on 186 securities stipulated by SEBI.

National Securities Clearing Corporation Limited (NSCCL):

Products and Services in NSCCL: -  Clearing and settlement  Guarantee  Risk Management  Direct Payout to investors  Constituent SGL account  Mutual Fund Service system

INITIAL PUBLIC OFFERINGS (IPO): A corporate or company may raise capital in the primary market by way of an initial public offer, rights issue or private placement. An IPO is the selling of securities to the public in the primary market. It is the largest sources of funds with long or indefinite maturity for the company.

Subsidiaries of NSE: NSCCL, IISL, NSEIT, NSDL, Dot Ex Intl. Ltd (Dot Ex). Partners of NSE:  Clearing Members  Clearing Banks  Professional Clearing Members  Depositories  Custodians

Clearing and settlement (Equities): NSCCL carries out clearing and settlement functions as per the settlement cycles of different sub-segments in the equity segment.The clearing function of clearing corporation is designed to work out.

Clearing members: Clearing members means a member of a corporation who clears and settles deals through the clearing corporation.

Clearing Banks:

NSCCL offers settlement of funds through 13 clearing banks namely Canara Bank, HDFC Bank, Indus Indian Bank, ICICI Bank, UTI Bank, Bank of India, IDBI Bank, and

Hong Kong and shanghai Banking Corporation Limited, Kotak Mahindra Bank, Standard Charted Bank, Union Bank of India, SBI and Citi Bank.

Member may open their clearing accounts with any one bank for the purpose of settlement of exchange transactions.

Professional Clearing Members:

The functions and responsibilities of the PCM would be similar to custodian. PCM‟s may also under take clearing and settlement responsibility for trading members.

Depositaries:

NSCCL has established connectivity with both the depositories for electronic settlement of securities.

Custodians:

Custodians are clearing members but not trading members. They settle trades on behalf of their clients that are executed through other trading members. A trading member may assign a particular trade to a custodian for settlement.

The following Custodians are emparelled with NSCCL:  ABN Amro Bank N.V.  Citi Bank N.V.  Deutsche Bank A.G.  HDFC Bank  Hong Kong and Shanghai Banking Corporation Ltd  ICICI Ltd  Indus Ind Bank  Infrastructure Leasing and Financial Services Ltd  Standard Charted Bank  State Bank of India  Stock Holding Corporation of India Ltd

NSE’s MISSION:

NSE's mission is setting the agenda for change in the securities markets in India.

The NSE was set-up with the main objectives of:  Establishing a nation-wide trading facility for equities, debt instruments and hybrids,  Ensuring equal access to investors all over the country through an appropriate communication network,  Providing a fair, efficient and transparent securities market to investors using electronic trading systems,  Enabling shorter settlement cycles and book entry settlements systems, and  Meeting the current international standards of securities markets.

CORPORATE STRUCTURE OF NSE: NSE is one of the first de-mutualised stock exchanges in the country, where the Ownership and management of the Exchange is completely divorced from the right to trade on it. Though the impetus for its establishment came from policy Makers in the country, it has been set up as a public limited company, owned by the leading institutional investors in the country.

Professionals, who do not directly or indirectly trade on the Exchange, manage NSE. This has eliminated any conflict of interest and helped NSE in aggressively pursuing policies and practices within a public interest framework. The NSE model accommodates involvement, support and contribution of trading members in a variety of ways.

The board comprises of senior executives from promoter institutions, eminent professionals in the fields of law, economics, accountancy, finance, taxation, etc, public representatives, nominees of SEBI and one full time executive of the exchange. The day-today management of the Exchange is delegated to the Managing Director who is supported by a team of professional staff.

NSE Technology

NSE believes that technology 1) Will save competitive edge 2) Ensure timeliness 3) Give satisfaction in customer service. 4) Change the shape of the securities industry 5) Provide innovation sustained investment in technology.

57 internet. In order to capitalize on in-house expertise in technology, NSE set up a separate company, NSE.IT, in October 1999.

Operational under one roof to support the NSE applications. This coupled with the nation wide VSAT network makes NSE the country's largest Information Technology user.

Circuit Breakers: The Exchange has implemented index-based market-wide circuit breakers in compulsory rolling settlement with effect from July 02, 2001. In addition to the circuit breakers, price bands are also applicable on individual securities.

Index-based Market-wide Circuit Breakers:

The index-based market-wide circuit breaker system applies at 3 stages of the index movement, either way viz. at 10%, 15% and 20%. These circuit breakers when triggered bring about a coordinated trading halt in all equity and equity derivative markets nationwide. Movement of either the BSE Sensex or the NSE S&P CNX Nifty, whichever is breached earlier, triggers the market-wide circuit breakers.

 In case of a 15% movement of either index, there shall be a two-hour halt if the movement takes place before 1 p.m. If the 15% trigger is reached on or after 1:00p.m.

but before 2:00 p.m., there shall be a one-hour halt. If the 15% trigger is reached on or after 2:00 p.m., the trading shall halt for remainder of the day.  In case of a 20% movement of the index, trading shall be halted for the remainder of the day. These percentages are translated into absolute points of index variations on a quarterly basis. At the end of each quarter, these absolute points of index variations are revised for the applicability for the next quarter. The absolute points are calculated based on closing level of index on the last day of the trading in a quarter and rounded off to the nearest 10 points in case of S&P CNX Nifty.

Internet Trading at NSE NSE became the first exchange to grant approval to its members for providing Internet based trading services. In line with SEBI directives, NSE has issued circulars detailing the requirements and procedures to be complied with by members desirous of providing Internet based trading and services.

Operations of the National stock market system:  Trading operations  Post trading operations  National clearing and settlement facilities

60 the satellite. A rolling settlement system operates in NSE with settlement period of T+1. Funds and securities are exchanged by passing electronically proper debit and credit entries. Volume of NSE is more and access is faster in NSE. NSE is the market leader with over 40% of total turnover in 1999-2000.

NIFTY:

It stands for National Index 50, which gives the stock market trends of NSE by selecting top 50 companies based on capitalization.

Benefits of Stock Exchange: The benefits of stock Exchanges can be studied under the following headings: 1. Advantages to the companies:  Ready markets for securities  Increase in price.  Increase in goodwill.  Agent between companies and the investors.

2. Advantages to the investors:  Safety of investment  Best use of capital  More collateral value.  Publication of price list of securities  Powerful hedge against inflation.

3. Advantages to the society:  Helpful in industrialization  Increase in rater of capital formation.  Savings are encouraged.  Incentive for efficiency.  Government can raised funds for imports projects. Provides a mirror to reflect general economic conditions.

NATIONAL STOCK EXCHANGE:

Organization:

The official name of National Stock Exchange (NSE) is The National Stock Exchange Of India Limited”, a public limited company incorporated under the companies act, 1956. It is located in Worli in the near of Mumbai.

The NSE was incorporated in November 1992 on the initiative of the Indian government. It promoters include the Industrial Development Bank of India, Life Insurance Corporation of India, General Insurance Corporation of India, Industrial Finance Corporation of India Ltd., the State Bank of India and several other highly reputed financial institutions in India. They represent major and important participants in the Indian fixed income and equity markets.

The NSE primarily operates two market segments. 1) The wholesale debt market segment 2) The capital market segment

The ownership and management of the NSE is completely separate from its members‟ right to trade on the exchange. It is owned by the promoters and other financial institutions and not by its trading members. Hence, the management has no trading interest. It managed by a board of directors which delegated decisions on market operations to the executive committee.

The board of directors of the exchange has 15 directors: no elected member brokers, no public representatives, and 3 nominee of the SEBI, no nominee of the RBI, 2 eminent persons, 2 directors from the NSE management, and 8 nominees of the shareholder institutions. It is worth nothing that the composition of the NSE‟s board is significantly different from that of the BSE‟s board. The majority of the NSE‟s board is represented by institutions affiliated to or under material influence of the central government, while that of the BSE board is comprised by non-governmental members.

SEBI`S ROLE IN A STOCK EXCHANGE: Securities and Exchange Board of India has been set up under the SEBI Act, 1992 to protect the interest of investors in securities and to promote the development of and regulate the securities market and for matters connected there with or incidental thereto.

SEBI`S Power in Relation to Stock Exchange: The SEBI ordinance has given it the following powers: (i) It may call periodical return from stock exchanges. (ii) It has the power to prescribe maintenance of certain documents by the stock exchange. (iii) SEBI may call upon the exchange or any member to furnish explanation or information relating to the affairs of the stock exchange or any members. (iv) It has power to approve bye-laws of the stock exchange for regulation and control of the contracts. (v) It can amend bye-laws of stock exchange. (vi) In certain areas it can license the dealers in securities. (vii) It can compel a public company to list its shares.

If Central Government is of the opinion that the governing body of any recognized stock exchange should be superceded then it may give a written notice specifying the reasons for such action. After giving opportunity to the governing body it may supercede it and appoint person or persons to exercise and perform all the powers and duties of governing body.

ORGANISATION AND GROWTH OF STOCK EXCHANGES: Stock Exchanges in India are organized in any of the following forms: a. Voluntary, non-profit making associations, e.g., Bombay. Ahmedabad and Indore; b. Public Limited Companies such as Calcutta, Delhi and Bangalore stock exchanges; and

c. Company Limited by guarantee, e.g.; Hyderabad and Madras stock exchanges.

WEAKNESS OF STOCK EXCHANGES:

The stock exchanges in India suffer from a number of weaknesses. Principal weaknesses are discussed as follows: 1. Lack of Professionalism 2. Domination of Financial Institutions 3. Poor Liquidity 4. Domination by Big Operators 5. Less Floating Stocks 6. Speculative Trading

 Analysis And Interpretation

ANALYSIS AND INTERPRETATION

Historical security – Wise Price volume Data

Data for Nifty from 10- May -2010 to 6- July - 2010

Date Open High Low Close Shares Turnover Traded (Rs. Cr) 10-May-10 5027 5203.3 5026.6 5193.6 191632764 7272.87 11-May-10 5190 5206.7 5126.5 5136.15 168751932 6431.69 12-May-10 5134 5172.85 5098.8 5156.65 187111358 6559.76 13-May-10 5158 5212.7 5147.95 5178.9 179378582 6054.24 14-May-10 5181 5192.75 5070.95 5093.5 144381001 6094.56 17-May-10 5094 5094.55 4966.25 5059.9 169306794 7203.31 18-May-10 5060 5105.2 5024.25 5066.2 137027239 6336.36 19-May-10 5065 5065.1 4908.15 4919.65 212950386 8688.71 20-May-10 4924 4980.25 4924.3 4947.6 197303335 7215.28 21-May-10 4947 4946.7 4842.3 4931.15 230483809 7363.95 24-May-10 4944 5029.55 4923.45 4943.95 184424844 6576.57 25-May-10 4945 4946.6 4786.45 4806.75 198187219 6759.02 26-May-10 4807 4925.45 4807.3 4917.4 221985114 7246.83 27-May-10 4915 5016.6 4897.6 5003.1 238270068 9374.65 28-May-10 5006 5077.25 5005.6 5066.55 187947940 6703.72 31-May-10 5076 5097.6 5038.55 5086.3 179398969 5600.69 1-Jun-10 5086 5086.95 4961.05 4970.2 183016039 6170.85 2-Jun-10 4971 5031.2 4967.05 5019.85 217930824 6768.12 3-Jun-10 5020 5125.7 5020.15 5110.5 174606394 5784.75 4-Jun-10 5113 5147.9 5091.6 5135.5 174561315 5755.15 7-Jun-10 5133 5132.95 5004.25 5034 175607171 5958.49

8-Jun-10 5037 5071.35 4967.3 4987.1 180656558 6149.81 9-Jun-10 4985 5050.6 4980.1 5000.3 199912934 6619.08 10-Jun-10 5000 5085.2 4997.6 5078.6 176853398 6038.85 11-Jun-10 5079 5139.05 5078.75 5119.35 198342050 7105.68 14-Jun-10 5120 5201.25 5120.15 5197.7 158831199 5616.24 15-Jun-10 5201 5231.45 5171.05 5222.35 218930465 6642.21 16-Jun-10 5225 5255.65 5214.9 5233.35 203727420 7283.62 17-Jun-10 5234 5285.55 5206.55 5274.85 189953720 7662.74 18-Jun-10 5275 5302.3 5245.5 5262.6 205198165 7934.71 21-Jun-10 5267 5366.75 5266.5 5353.3 186200103 6565.17 22-Jun-10 5354 5354.35 5311.05 5316.55 162043358 5453.37 23-Jun-10 5316 5333.3 5288.15 5323.15 150160458 5457.95 24-Jun-10 5323 5348.3 5284.55 5320.6 218787111 8902.73 25-Jun-10 5321 5320.5 5259.9 5269.05 164967805 6750.84 28-Jun-10 5271 5339.45 5270.75 5333.5 154140414 6284.06 29-Jun-10 5334 5334.15 5235.8 5256.15 158720263 5859.41 30-Jun-10 5254 5320.35 5210 5312.5 183722824 7083.92 1-Jul-10 5312 5312.55 5232.1 5251.4 141430947 5489.08 2-Jul-10 5251 5277.25 5225.6 5237.1 149979351 5158.26 5-Jul-10 5237 5252.75 5225.85 5235.9 100621413 3333.36 6-Jul-10 5236 5297.45 5231.5 5289.05 115506191 4290.4

Chart of closing price 5400 Close, 5289.05 5300

5200

5100

5000

4900

4800

4700

4600

4500

INTERPRETATION:

The graph shows the performance of NIFTY on 10th may. It has at 5193.6 Points, but it has different prices during month, slowly it faced lowest price their share value middle of the month. And later it is increasing points day by day during june.It is on 6th july at 5289.05points because Recession is reducing regularly as well as Growth is increasing And also Global Market conditions are good.

HISTORICAL SECURITY WISE PRICE VOLUME DATA

Data for GMR - INFRA from 10- May -10 to 6- July -2010

Total Symbol Series Date Prev Close Open Price Close Price Traded Turnover Quantity in Lacs GMRINFRA EQ 10 -May-10 61.8 63.75 62.55 4710803 2948.16 GMRINFRA EQ 11-May-10 62.55 62.5 60.4 3002034 1827.82 GMRINFRA EQ 12-May-10 60.4 59.5 59.95 5000604 2996.69 GMRINFRA EQ 13-May-10 59.95 60.85 59.65 3633511 2187.11 GMRINFRA EQ 14-May-10 59.65 59.65 58.15 3255233 1914.4 GMRINFRA EQ 17-May-10 58.15 58 59.2 2856554 1666.2 GMRINFRA EQ 18-May-10 59.2 59 59.1 2044916 1207.24 GMRINFRA EQ 19-May-10 59.1 58.8 57.55 2274488 1321.79 GMRINFRA EQ 20-May-10 57.55 57.1 57.8 1687562 979.5 GMRINFRA EQ 21-May-10 57.8 56 57.4 1582992 903.7 GMRINFRA EQ 24-May-10 57.4 59 56.9 3114499 1800.59 GMRINFRA EQ 25-May-10 56.9 56.25 54.35 3069351 1694.8 GMRINFRA EQ 26-May-10 54.35 55.4 58.15 4408409 2502.6 GMRINFRA EQ 27-May-10 58.15 58.05 57.3 2040722 1169.13 GMRINFRA EQ 28-May-10 57.3 58.6 58.7 2323906 1354.89 GMRINFRA EQ 31-May-10 58.7 59 59.75 2567471 1514.96 GMRINFRA EQ 1-Jun-10 59.75 60 57.3 1719467 999.57 GMRINFRA EQ 2-Jun-10 57.3 57.9 57.1 2274454 1301.75 GMRINFRA EQ 3-Jun-10 57.1 57.7 57.6 2950016 1703.59 GMRINFRA EQ 4-Jun-10 57.6 57.6 57.25 2266756 1301.52 GMRINFRA EQ 7-Jun-10 57.25 56 55.45 2062953 1142.17

GMRINFRA EQ 8-Jun-10 55.45 55.6 55.2 2332758 1299.49 GMRINFRA EQ 9-Jun-10 55.2 55.3 54.9 1559513 860.19 GMRINFRA EQ 10-Jun-10 54.9 55.9 55 2199900 1208.43 GMRINFRA EQ 11-Jun-10 55 55.5 55.05 2964389 1634.32 GMRINFRA EQ 14-Jun-10 55.05 55.1 55.45 3052499 1687.26 GMRINFRA EQ 15-Jun-10 55.45 55.9 56.15 4856925 2726.91 GMRINFRA EQ 16-Jun-10 56.15 56.5 56.05 4473480 2525.47 GMRINFRA EQ 17-Jun-10 56.05 56.45 56.8 2670562 1512.81 GMRINFRA EQ 18-Jun-10 56.8 56.35 56.4 3701022 2097.08 GMRINFRA EQ 21-Jun-10 56.4 57 57.05 3466759 1981.85 GMRINFRA EQ 22-Jun-10 57.05 57.15 56.45 5159936 2931.88 GMRINFRA EQ 23-Jun-10 56.45 56.4 56.65 4211643 2396.69 GMRINFRA EQ 24-Jun-10 56.65 56.7 56.85 7284216 4175.52 GMRINFRA EQ 25-Jun-10 56.85 57 57.15 6567064 3798.79 GMRINFRA EQ 28-Jun-10 57.15 58.25 58.15 4738432 2745.39 GMRINFRA EQ 29-Jun-10 58.15 58.2 58.8 5813239 3401.51 GMRINFRA EQ 30-Jun-10 58.8 58.25 59.5 4691862 2761.36 GMRINFRA EQ 1-Jul-10 59.5 59.9 59.8 4566533 2714.44 GMRINFRA EQ 2-Jul-10 59.8 60 60.15 4602851 2768.95 GMRINFRA EQ 5-Jul-10 60.15 60.25 59.65 2157590 1292.29 GMRINFRA EQ 6-Jul-10 59.65 59.65 59.7 2167652 1295.83

chart of clsoing price 64

INTERPRETATION:-

The graph shows the performance of GMRINFRA on 10th may. It has at 62.55 Rs. Points, but it has different prices during month,but slowly it started folling, suddenly it faced lowest price 54.35 on 25th May then gradually it raised day by bay . And on 6th july at 59.70 Rs only. because due to some difficult position of the company and it decreased in the performance of GMRINFRA.

HISTORICAL SECURITY WISE PRICE VOLUME DATA

Data for SBIN from 10- May-2010 to 6- July-2010

Symbol Series Date Prev Open Close Total Turnover Close Price Price Traded Quantity in Lacs SBIN EQ 10-May-10 2226.15 2250 2307.85 1479169 33813.48 SBIN EQ 11-May-10 2307.85 2314 2287.85 1837797 42409.43 SBIN EQ 12-May-10 2287.85 2290 2324.2 2020404 46707.62 SBIN EQ 13-May-10 2324.2 2332 2317.75 1776291 41455.75 SBIN EQ 14-May-10 2317.75 2315 2224.25 3300888 75086.26 SBIN EQ 17-May-10 2224.25 2210 2250.75 2570305 56437.01 SBIN EQ 18-May-10 2250.75 2247.9 2280 1890134 42949.96 SBIN EQ 19-May-10 2280 2260 2214.15 2041502 45641.25 SBIN EQ 20-May-10 2214.15 2222 2267.5 1703996 38404.76 SBIN EQ 21-May-10 2267.5 2222 2271.2 1570644 35359.47 SBIN EQ 24-May-10 2271.2 2282 2231.2 1519547 34488.13 SBIN EQ 25-May-10 2231.2 2220 2155.1 1735582 37803.02 SBIN EQ 26-May-10 2155.1 2171.8 2173.6 1650027 35809.78 SBIN EQ 27-May-10 2173.6 2170 2219.4 2178192 47801.64 SBIN EQ 28-May-10 2219.4 2244 2239.4 1356796 30286.14 SBIN EQ 31-May-10 2239.4 2230 2268.8 1198904 27057.94 SBIN EQ 1-Jun-10 2268.8 2251.1 2209.65 1442336 32334.51 SBIN EQ 2-Jun-10 2209.65 2212.2 2258.25 1234250 27609.28 SBIN EQ 3-Jun-10 2258.25 2265.05 2287.3 1258719 28854.25 SBIN EQ 4-Jun-10 2287.3 2290 2340.75 1947874 45245.11 SBIN EQ 7-Jun-10 2340.75 2251.2 2286.75 1492520 34125.96 SBIN EQ 8-Jun-10 2286.75 2288 2283.8 1401834 32340.14 SBIN EQ 9-Jun-10 2283.8 2285 2272.5 1814176 41449.07

SBIN EQ 10-Jun-10 2272.5 2266 2326.85 2449684 56730.28 SBIN EQ 11-Jun-10 2326.85 2630.1 2339.9 1506327 35287.56 SBIN EQ 14-Jun-10 2339.9 2345 2345 1018766 23883.13 SBIN EQ 15-Jun-10 2345 2349.9 2364.2 1530534 35880.23 SBIN EQ 16-Jun-10 2364.2 2417 2361.7 1414155 33416.15 SBIN EQ 17-Jun-10 2361.7 2359 2350.85 1033108 24205.11 SBIN EQ 18-Jun-10 2350.85 2349.85 2372.6 1559762 36844.01 SBIN EQ 21-Jun-10 2372.6 2375 2387.8 887925 21241.02 SBIN EQ 22-Jun-10 2387.8 2375 2354.55 851451 20138.02 SBIN EQ 23-Jun-10 2354.55 2350 2349.55 1084942 25385.69 SBIN EQ 24-Jun-10 2349.55 2350 2357.55 1212340 28548.56 SBIN EQ 25-Jun-10 2357.55 2350.15 2300.8 1302272 30181.97 SBIN EQ 28-Jun-10 2300.8 2288 2303.65 1071817 24641.4 SBIN EQ 29-Jun-10 2303.65 2305 2291.15 1420842 32676.87 SBIN EQ 30-Jun-10 2291.15 2279.8 2302 1061040 24404.81 SBIN EQ 1-Jul-10 2302 2291.1 2262.25 1421990 32225.56 SBIN EQ 2-Jul-10 2262.25 2265 2265.05 890734 20205.41 SBIN EQ 5-Jul-10 2265.05 2265.1 2272.5 619255 14108.24 SBIN EQ 6-Jul-10 2272.5 2273 2312.8 1014391 23322.17

Chart of Closing price 2450

2400

2350

2300

2250

2200 Close Price

2150

2100

2050

2000

Interpretation: -

The SBIN graph shows scrip movements in the month of May beginning of month it has a good price at 2307.85 Rs and slowly it decreased and we can see slight fluctuations in this graph. Later on it declines scrip price on 24th may, at 2231.5Rs only and scrip price on 6th july at 2312.8 Because of due to some external factors like growth of GDP and increasing rupee value etc.

HISTORICAL SECURITY WISE PRICE VOLUME DATA Data for MUDRA from 10- May -2010 to 6- July -2010 Symbol Series Date Prev Open Close Total Turnover Close Price Price Traded Quantity in Lacs MUDRA EQ 10-May-10 41.65 42.25 42.65 280873 119.92 MUDRA EQ 11-May-10 42.65 44.3 42.35 845039 369.86 MUDRA EQ 12-May-10 42.35 42.8 41.95 145569 61.83 MUDRA EQ 13-May-10 41.95 43.15 41.75 149921 63.61 MUDRA EQ 14-May-10 41.75 41.05 41.1 97351 40.19 MUDRA EQ 17-May-10 41.1 40.85 40.1 71450 28.62 MUDRA EQ 18-May-10 40.1 39.6 40.85 116878 48.14 MUDRA EQ 19-May-10 40.85 40 37.15 125780 48.66 MUDRA EQ 20-May-10 37.15 37.55 37.75 141807 53.44 MUDRA EQ 21-May-10 37.75 37.2 37.8 98007 36.27 MUDRA EQ 24-May-10 37.8 37.95 38.3 100590 39.36 MUDRA EQ 25-May-10 38.3 36.05 37.25 58830 22.08 MUDRA EQ 26-May-10 37.25 37.9 37.05 39608 14.69 MUDRA EQ 27-May-10 37.05 37.1 37.6 17695 6.64 MUDRA EQ 28-May-10 37.6 38 37.8 31908 12.11 MUDRA EQ 31-May-10 37.8 37 38.5 121110 47.5 MUDRA EQ 1-Jun-10 38.5 37.25 37.1 62044 23.45 MUDRA EQ 2-Jun-10 37.1 38.1 37.1 39252 14.65 MUDRA EQ 3-Jun-10 37.1 38 37.25 58916 22.28 MUDRA EQ 4-Jun-10 37.25 36.4 37.25 143458 53.69 MUDRA EQ 7-Jun-10 37.25 36.1 37.05 15415 5.69 MUDRA EQ 8-Jun-10 37.05 37.8 36.5 30754 11.37 MUDRA EQ 9-Jun-10 36.5 36.15 36.5 49847 18.38

MUDRA EQ 10-Jun-10 36.5 37 36.9 3961 1.46 MUDRA EQ 11-Jun-10 36.9 37.1 36.35 29959 11.04 MUDRA EQ 14-Jun-10 36.35 36.65 37.75 49812 18.68 MUDRA EQ 15-Jun-10 37.75 38 40.9 391930 156.85 MUDRA EQ 16-Jun-10 40.9 41.5 40.3 275617 114.04 MUDRA EQ 17-Jun-10 40.3 40.9 40.9 126315 50.64 MUDRA EQ 18-Jun-10 40.9 40.8 39.4 43626 17.43 MUDRA EQ 21-Jun-10 39.4 40.55 39.75 39147 15.61 MUDRA EQ 22-Jun-10 39.75 39.5 39.8 51241 20.45 MUDRA EQ 23-Jun-10 39.8 39.8 41.25 160400 65.66 MUDRA EQ 24-Jun-10 41.25 42 40.9 68089 27.99 MUDRA EQ 25-Jun-10 40.9 41.5 43.1 313946 133.26 MUDRA EQ 28-Jun-10 43.1 43.95 43.85 198948 87.62 MUDRA EQ 29-Jun-10 43.85 44 44.35 213416 95.44 MUDRA EQ 30-Jun-10 44.35 44 45.75 336330 152.09 MUDRA EQ 1-Jul-10 45.75 46 46.45 365129 168.78 MUDRA EQ 2-Jul-10 46.45 47 47.6 428482 203.05 MUDRA EQ 5-Jul-10 47.6 47.9 47.9 277088 133.44 MUDRA EQ 6-Jul-10 47.9 47.5 46.45 251708 117.12

Chart of closing price 60

Close Price 20

Interpretation: -

The MUDRA graph shows scrip movements in the month of May beginning of month it has a good price at 42.65 Rs and slowly it decreased and we can see slight fluctuations in this graph. Later on it grows scrip price on 6th july, at 46.45 Rs only. Because of some internal factors are good and investors like to invest in this scrip. The highest price of the share is 47.9 on July 5th.

HISTORICAL SECURITY WISE PRICE VOLUME DATA Data for NTPC from 10- May -2010 to 6- July -2010

Symbol Series Date Prev Open Close Total Turnover Close Price Price Traded Quantity in Lacs NTPC EQ 10-May-10 202.6 204 205.25 1780205 3648.61 NTPC EQ 11-May-10 205.25 206 204.9 2485430 5075.33 NTPC EQ 12-May-10 204.9 204.5 206.25 1968672 4046.47 NTPC EQ 13-May-10 206.25 205.5 207.75 3376878 7002.36 NTPC EQ 14-May-10 207.75 207.75 205.85 2555638 5290.64 NTPC EQ 17-May-10 205.85 204.05 204 1982160 4032.04 NTPC EQ 18-May-10 204 203 205.15 2349983 4798.89 NTPC EQ 19-May-10 205.15 208 201.8 1812559 3681.19 NTPC EQ 20-May-10 201.8 201.8 204.55 2739769 5575.74 NTPC EQ 21-May-10 204.55 203 196.2 5927267 11765.05 NTPC EQ 24-May-10 196.2 199 198.2 1676135 3321.44 NTPC EQ 25-May-10 198.2 198.2 192.7 3935707 7577.36 NTPC EQ 26-May-10 192.7 194 195.2 2908222 5635.85 NTPC EQ 27-May-10 195.2 196.45 197.35 4651607 9115.94 NTPC EQ 28-May-10 197.35 198.5 201.1 1966977 3923.6 NTPC EQ 31-May-10 201.1 201 202.3 2137240 4307.42 NTPC EQ 1-Jun-10 202.3 203 197.7 2183814 4366.58 NTPC EQ 2-Jun-10 197.7 198 197.5 2059942 4064.6 NTPC EQ 3-Jun-10 197.5 200 202.3 1990951 3997.94 NTPC EQ 4-Jun-10 202.3 202.1 202.2 1603701 3246.52 NTPC EQ 7-Jun-10 202.2 202 199.85 1107584 2205.32 NTPC EQ 8-Jun-10 199.85 200 200.15 1287759 2579.47 NTPC EQ 9-Jun-10 200.15 200.8 198.6 1764847 3521.14

NTPC EQ 10-Jun-10 198.6 199.1 200 1079382 2157.33 NTPC EQ 11-Jun-10 200 200 199.9 1330301 2663.35 NTPC EQ 14-Jun-10 199.9 201.85 199.95 1852548 3698.41 NTPC EQ 15-Jun-10 199.95 199.05 202.15 1849177 3716.55 NTPC EQ 16-Jun-10 202.15 201 200.45 1144043 2297.31 NTPC EQ 17-Jun-10 200.45 201 199.75 1491994 2972.04 NTPC EQ 18-Jun-10 199.75 201 200.8 2206824 4411.99 NTPC EQ 21-Jun-10 200.8 204.9 201.2 1815369 3664.32 NTPC EQ 22-Jun-10 201.2 200.5 199.65 1101786 2206 NTPC EQ 23-Jun-10 199.65 199.65 196.75 2952700 5819.8 NTPC EQ 24-Jun-10 196.75 197 194.6 3143407 6151.42 NTPC EQ 25-Jun-10 194.6 195.2 196 1515316 2974.46 NTPC EQ 28-Jun-10 196 195.5 198.95 2121561 4194.2 NTPC EQ 29-Jun-10 198.95 199 197.55 1496907 2963.41 NTPC EQ 30-Jun-10 197.55 195.1 199.6 2136703 4243.02 NTPC EQ 1-Jul-10 199.6 199 199.95 1840876 3674.74 NTPC EQ 2-Jul-10 199.95 200.5 202.45 2182027 4400.32 NTPC EQ 5-Jul-10 202.45 203 199.95 1689086 3374.03 NTPC EQ 6-Jul-10 199.95 200 200.7 1078917 2161.21

Chart of Closing price 210

205

200

195 Close Price

190

185

Interpretation: -

The graph shows the performance of NTPC on 10th may. It has at 205.25 Rs. Points, but it has different prices during month, slowly it faced lowest price their share value middle of the month 192.7 on25th May. And on 6th july at 200.7 Rs only because due to some difficult position of the company and it decreased in the performance of NTPC..

HISTORICAL SECURITY WISE PRICE VOLUME DATA Data for TATA STEEL from 10- May -2010 to 6- July -2010

Symbol Series Date Prev Open Close Total Turnover Close Price Price Traded Quantity in Lacs TATASTEEL EQ 10-May-10 558.35 598.9 601.45 7652080 45015.48 TATASTEEL EQ 11-May-10 601.45 605 582.05 9110721 53988.84 TATASTEEL EQ 12-May-10 582.05 582 584.45 6387978 37108.27 TATASTEEL EQ 13-May-10 584.45 585 575.1 5536496 32239.29 TATASTEEL EQ 14-May-10 575.1 574 547.95 8098780 45234.95 TATASTEEL EQ 17-May-10 547.95 532.55 536.35 10980267 58293.47 TATASTEEL EQ 18-May-10 536.35 538.8 530.3 9404348 50177.4 TATASTEEL EQ 19-May-10 530.3 525 512.5 10840352 56419.13 TATASTEEL EQ 20-May-10 512.5 515 508.15 8859344 45456.87 TATASTEEL EQ 21-May-10 508.15 497.5 509.25 12330468 61582.77 TATASTEEL EQ 24-May-10 509.25 516 501.05 6739616 34576.25 TATASTEEL EQ 25-May-10 501.05 495 476.65 10992461 53230.12 TATASTEEL EQ 26-May-10 476.65 478 484.45 12786725 61984.91 TATASTEEL EQ 27-May-10 484.45 483 492.35 18578867 90307.78 TATASTEEL EQ 28-May-10 492.35 500 496.85 14624253 73243.9 TATASTEEL EQ 31-May-10 496.85 496.85 500.7 9130421 45089.95 TATASTEEL EQ 1-Jun-10 500.7 500 480 11520743 56813.57 TATASTEEL EQ 2-Jun-10 480 485 484.3 9941561 47837 TATASTEEL EQ 3-Jun-10 484.3 490.1 485.8 9458420 46335.85 TATASTEEL EQ 4-Jun-10 485.8 484.5 485.25 8232769 39880.42 TATASTEEL EQ 7-Jun-10 485.25 471 462.15 8345442 38754.5 TATASTEEL EQ 8-Jun-10 462.15 464.25 451.4 9002301 41309.3 TATASTEEL EQ 9-Jun-10 451.4 453 463.05 11085765 50978.85

TATASTEEL EQ 10-Jun-10 463.05 468.8 471.45 7726186 35957.69 TATASTEEL EQ 11-Jun-10 471.45 475 473.6 6951140 32999.82 TATASTEEL EQ 14-Jun-10 473.6 476.1 484.2 5379899 25954.04 TATASTEEL EQ 15-Jun-10 484.2 484.2 491.9 6009094 29301.85 TATASTEEL EQ 16-Jun-10 491.9 495.1 485.55 6699682 32889.05 TATASTEEL EQ 17-Jun-10 485.55 486 480.95 7688313 37038.02 TATASTEEL EQ 18-Jun-10 480.95 482.6 473.75 6006502 28718.71 TATASTEEL EQ 21-Jun-10 473.75 480.1 504.8 10355747 51673.97 TATASTEEL EQ 22-Jun-10 504.8 508 494.05 7213946 35872.11 TATASTEEL EQ 23-Jun-10 494.05 491 497.6 8072678 39996.71 TATASTEEL EQ 24-Jun-10 497.6 498 498.4 8992919 45065.65 TATASTEEL EQ 25-Jun-10 498.4 498 490.05 5992416 29689.61 TATASTEEL EQ 28-Jun-10 490.05 490.3 500.1 4142000 20573.81 TATASTEEL EQ 29-Jun-10 500.1 499.8 481.6 6807542 33178.09 TATASTEEL EQ 30-Jun-10 481.6 470.1 485.65 5948659 28568.86 TATASTEEL EQ 1-Jul-10 485.65 483.7 475 4968836 23630.12 TATASTEEL EQ 2-Jul-10 475 475.1 474.95 5373611 25593.94 TATASTEEL EQ 5-Jul-10 474.95 476 471.75 2536063 12000.96 TATASTEEL EQ 6-Jul-10 471.75 473 480.4 5299286 25287.98

chart of closing price 700

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500

400

300 Close Price 200

100

Interpretation: - The TATASTEEL graph shows scrip movements in the month of May beginning of month it has a good price at 601.45 Rs and rapidly it is decresing. Later on it declines scrip price on 6th july, at 480.4 Rs only. Because of internal factors and market conditions are not good.

SUMMARY OF ANALYSIS

COMPANY NAME MAY 10TH JULY 6TH Increase Decrease OPENING CLOSING PRICE OF SHARE PRICE OF SHARE GMR INFRA 63.75 59.7 4.05 SBIN 2250 2312.8 62.8 MURDA 42.25 46.45 4.20 NTPC 204 200.7 3.3 TATA STEEL 598.9 480.4 118.5 NIFTY 5027 5289.05 256.05

Interpretation of analysis of market in the period of project:

On 10th may nifty opening is 5027 then onwards it gradually grown . by the 6th july nifty closing price is 5289.05 . it increased 256.05 points in that period. because of good performance of companies. remaining companies given above are the companies i have observed. some of them performed positively some of them performed negatively.

CAUSES OF FLUCTUATIONS

News of the day makes the mager roll in the market basing on news investors trade the shares. issues occurred in the in the business field effect the market. like

i. IPO ii. WINDING UP OF THE A COMPANY iii. LOUNCHING THE NEW COMPANY iv. GOVERNMENT DECITIONS v. NATURAL CALAMITIES vi. POLITICAL ISSUES

These are the causes effecting the share market.

 Findings  Suggestions  summary

FINDINGS

 A.C.CHOKSI Founded by Mr.Ashvin Choksi and Mrs.Dipika Choksi in February

1984. is a stock broking company operating in Madhya Pradesh, Andhra Pradesh,

Orissa, Karnataka and TamilNadu.

 In A.C.CHOKSI, trading in NSE, BSE, NCDEX and MCX is done on different

terminals.

 Trading in NSE is done through National Exchange for Automated Trading

(NEAT) system.

 As soon as the trade ends, the client settlement and reports of the trading are made

by the back office.

 Bills are prepared and the brokerage commission, service tax, stamp duty and

security transaction tax are charged to the clients in this process.

 In A.C.CHOKSI, rolling settlement is used to settle the accounts of the clients.

 Apart from online trading, de-mat of securities is done in the DP block of

A.C.CHOKSI.

 Daily market information is collected and updated to enable the investors to invest

in profitable shares.

 In this month market fall down up lightly, it rising and get, back to the positive

trends in the market.

SUMMARY

 The focus of the study was on Online Trading in A.C.Choksi share brokers private

Limited, Visakhapatnam with an objective to study and understand the real

process of stock trading.

 The on-line trading in NSE is done through National Exchange for Automated

Trading (NEAT) system. Trading is done in the 2 types of markets of the NEAT

system namely capital market and derivatives market.

 A.C.Choksi, which was set up in November 1995, is a stock broking company. It

is a trading member of NSE, BSE, MCX and NCDEX.

 Screen based trading system electronically matches the buyer and seller in an

order-driven system or finds the customer the best price available in quote driven

system.

 Today, in India almost 100% trading takes place through electronic order

matching.

 In online trading Back Office provide the clients with all the trading related

services in the post market session.

 Depository participant has attained significance after the implementation of de-

matting of shares. The DP will maintain the securities account balances and

transfer the shares electronically.

 Trading activities in stock market include delivery or payment, settlement

procedure, auctions and clearing procedure.

SUGGESTIONS

 Theoretical knowledge about the stocks and markets is essential for the staff in

trading section.

 Periodically they should review the brokerage charges.

 Well –experienced computer operators should operate to reduce errors in trading, as

a small error may tie-up the whole trading for the day.

 Provide training program‟s to the employees in order to get them adjusted to the

changes in the stock market.

 SCSL can expand its branches to cities having potential markets.

 Provide newsletters for investors and employees to know about the capital market

and commodities market.

 There is law that brokerage companies should not advertise their companies in the

media that should be revoked form the assigned laws to the share brokerage agencies

because due to this law agencies are not able to promote their companies to the

public that is way they are not able to expand their business.

 Jobbing should be allowed to people who do fair transactions.

 In this month market fall down up to 7thMay and from 8thMay, it rising and get, back

to the positive trends in the market. The reason for the Nifty down fall and rise after

9th May was due to the weak currency and the banking shares performed well.

BIBILOGRAPHY

SECURITY ANALYSIS AND PORTFOLIO MANAGEMENT - PUNITHAVATHY PANDIAN

FINANCIAL MANAGEMENT - KHAN & JAIN

FINANCIAL INSTITUTIONS AND MARKETS - L.M.BHOLE

INVESTMENT MANAGEMENT - V.K.BHALLA

JOURNALS: THE HINDU BUSINESS LINE ECONOMIC TIMES BUSINESS WORLD CAPITAL MARKET (DEALERS) WORKBOOK

WEBSITES: www.nseindia.com www.bseindia.com www.steelcitynettrade.com www.herohonda.com

ABRIVATIONS:

ALBM Automated Lending & Borrowing Mechanism BSE Bombay Stock Exchange CDSL Central Depositary Services Limited CM‟s Clearing Members CM-BP-ID Clearing Member Business Partner Identification Number DI Delivery Instructions Slip DP Depository Participant DRF Dematerialization Request Form FII‟s Foreign Institutional Investors ISIN International Securities Identification Number IPO Initial Public Offer LAN Local Area Network NBFC‟s Non - Banking Finance Companies NCFM National Certification in Financial Market NEAT National Exchange for Automated Trading NSCCL National Securities Clearing Corporation Limited NSDL National Securities Depository Limited NSE National Stock Exchange RAS Remote Access Service SCSL Steel City Securities Limited SCCSPL Steel City Capital Services Private Limited SCCPL Steel City Commodities Private Limited SEBI Securities and Exchange Board of India SEBI Act Securities and Exchange Board of India Act SHCIL Stock Holding Corporation of India Limited TWS Trading Work Station VSAT Very Small Aperture Terminal WAN Wide Area Network