Академический Документы
Профессиональный Документы
Культура Документы
ON
Submitted to
In the partial fulfillment
Of the award of the degree of
MBA (Master of Business Administration)
1
PREFACE
2
to last ten years. With the perception in mind that
initially, before ten years back investors were only from
big cities but now the scenario has been changed with
the retailing in this industry. Today small investors
concept is in trend that show now cities like, Bhopal,
where financial market is not enough smart but a good
number of customer’s and investors have started
investing this study is all about this changing scenario.
3
CONTENTS
Certificate____________________________________6
Declaration___________________________________7
Acknowledgement______________________________8
The Indian Capital Market_______________________9-31
• An Overview
• Other leading cities in stock market operation
• Growth of Indian Stock Exchanges
• Sensex and Nifty
• History
• Key Milestones
• Myths of Stock Market
• How Stock Market Works
Initial Public Offering__________________________32-35
• Introduction
• How to apply Public issue
• How to make Payment for IPOs
• Role of SEBI in process of IPO
DEMAT account______________________________36-38
• Introduction
• How to open Demat account
• Document required
SEBI (Securities and Exchange Board of India)_____39-45
• Introduction
• The Board Comprises
• Functions and Responsibilities
BSE (Bombay Stock Exchange) Introduction_______46-49
NSE (National Stock Exchange)_________________50-52
• Introduction
• NSE group
4
SENSEX____________________________________53-58
• Introduction
• SENSEX calculation Methodology
• Concept of Free Float
• Definition of Free Float
• Function and Purpose of Stock Market
Depository__________________________________59-64
• CDSL
• NSDL
• CSD
FII(Foreign Institutional Investor)________________65-72
• Introduction
• FII mean
• Regulations
Participatory Notes___________________________73-77
Scams of Share Market________________________78-94
• Harshad Mehta Scam
• Ketan Parekhs Scam
• Satyam Scam
• Karvy IPO scam
List of registered Share Brokers and Sub- Brokers__95-109
Research Methodology_______________________110-118
Result analysis &Interpretation________________119-126
Suggestions_______________________________127-128
Conclusion_________________________________129-132
Questions for interview_______________________133-134
Biblography________________________________135-136
5
CERTIFICATE
MANISH KHARE
PROJECT GUIDE
Signature:
6
Name : Mrs. SRISHTI SHARMA Signature
& seal of the
Learning center
STUDENT DECLARATION
TO
Place : Bhopal
Name: Manish khare
Date:
Reg. No. A8750139
7
ACKNOWLEDGEMENT
8
THE INDIAN CAPITAL MARKET
AN OVERVIEW
9
b) SCRA provides regulations for direct and indirect
control of stock exchanges with an aim to prevent
undesirable transactions in securities. It provides
regulatory jurisdiction to Central Government over stock
exchanges, contracts in securities and listing of securities
on stock exchanges.
10
forward market, where securities are traded for future
delivery and payment in the form of futures and options.
The futures and options can be on individual stocks or
basket of stocks like index. Two exchanges, namely
National Stock Exchange (NSE) and the Stock Exchange,
Mumbai (BSE) provide trading of derivatives in single
stock futures, index futures, single stock options and
index options. Derivatives trading commenced in India in
June 2000
11
June 1908, some leading brokers formed "The Calcutta
Stock Exchange Association".
12
Lahore Stock Exchange was formed in 1934 and it had a
brief life. It was merged with the Punjab Stock Exchange
Limited, which was incorporated in 1936.
13
There are two major indicators of Indian capital market-
SENSEX & NIFTY:
14
called the “BSE Mid-cap Index”. There are many other
types of index. Unless stock markets provide
professionalized service, small investors and foreign
investors will not be interested in capital market
operations. And capital market being one of the major
source of long-term finance for industrial projects, India
cannot afford to damage the capital market path. In this
regard NSE gains vital importance in the Indian capital
market but if we see the sensex & nifty graph there is a
great variation.
15
HISTORICAL PERSPECTIVE
16
through the post liberalization era of Indian economy and
witnessed the formation of Securities and Exchange Board
of India (SEBI) which brought substantial transparency in
share market practices and thus managed to bring in trust
of not only domestic investors but also the international
ones.
17
indicates a period of volatility or no real direction, and red
shows a period of a downward trend. Based on this, is it
any surprise that markets are becoming volatile and
possibly trending downward?
18
Keep Doing What You’re Doing
19
KEY MILESTONES
1900s
Since 1990
20
July 1991 Rupee devalued by 18-19 %
6151, Feb 14, 2000 Tops. Index declines until Sept 2001
and loses half the value. Coincides with dot-com bubble
burst.
21
2595, Sept 21, 2001 Bottoms.
7000, June 20, 2005 On June 20, 2005, the news of the
settlement between the Ambani brothers boosted investor
sentiments and the scrips of RIL, Reliance Energy,
Reliance Capital, and IPCL made huge gains. This helped
the Sensex crossed 7,000 points for the first time.
22
was on March 27, 2006 that the Sensex first closed at
over 11,000 points.
23
15,000. Nifty also touched a new high at 4659, up 113
points.
24
blue chip stocks in metal, capital goods and refinery
sectors. The index gained the last 1,000 points in just four
trading days. The index touched a fresh all-time intra-day
high of 19,096, and finally ended with a smart gain of 640
points at 19,059.The Nifty gained 242 points to close at
5,670.
25
15,200, June 13, 2008 The sensex closed below 15,200
mark, Indian market suffer with major downfall from
January 21,2008
26
14284.21, May 18, 2009 After the result of 15th indian
general election Sensex gained 2110.79 points form the
previous close of 12173.42 these creates a new histroy in
Indian Market. In the Opening Trade itself sensex gain
15% from the previous day close this leads to the
suspension of 2 hours trade. After 2 hours sensex again
surged this leads to the suspension of full day trading.
14200
27
Myths of stock market
28
3. Buy Stocks on the Way Down and Sell on the Way
Up.
False: The only thing true about this is that young people
have time on their side if they lose all their money. But
young people have little disposable income to risk losing.
If they follow the tips above, they can make money over
many years. Young people have the time to be patient.
29
How stock market works
30
They can do this in two ways: by issuing bonds, which are
basically a way of selling debt (or taking out a loan,
depending on your perspective), or by issuing stock, that
is, shares in the ownership of the company.
31
IPO – Initial Public Offering
32
How to apply to a public issue ?
33
3. Does the Company have any Technology tie-up ? if
yes , What is the reputation of the collaborators
34
issue large than Rs. 250 crore, the money is to be
collected as under:
35
DEMAT ACCOUNT
36
you don't have to possess any physical certificates
showing that you own these shares. They are all held
electronically in your account. As you buy and sell
the shares, they are adjusted in your account. Just like a
bank passbook or statement, the DP will provide you
with periodic statements of holdings and transactions.
Documents Required
37
must for opening a demat account. These are the
documents required to open a demat account
38
SEBI – Introduction
39
corporations etc. reduced the risk of credit and also
reduced the market.
40
Two broad approaches of SEBI is to integrate the
securities market at the national level, and also to
diversify the trading products, so that there is an increase
in number of traders including banks, financial
institutions,insurance companies, mutual funds, primary
dealers etc. to transact through the Exchanges. In this
context the introduction of derivatives trading through
Indian Stock Exchanges permitted by SEBI in 2000 AD is
a real landmark.
41
However the Securities Contracts (Regulation) Act, 1956
(SCRA) required amendment to include "derivatives" in
the definition of securities to enable SEBI to introduce
trading in derivatives. The necessary amendment was
then carried out by the Government in 1999. The
Securities Laws (Amendment) Bill, 1999 was introduced.
In December 1999 the new framework was approved.
Organisation Structure
42
Chairman SEBI, he had been the chairman of NSDL
(National Securities Depository Limited) ushering in
paperless securities. Prior to his stint at NSDL, he had
served SEBI as a Senior Executive Director. He is a
former Indian Administrative Service officer of the 1975
batch.
CHAIRMAN (S.4(1)
Mr CB Bhave Chairman SEBI (a) of the SEBI Act,
1992)
Member (S.4(1)(b)
Joint Secretary,
Mr KP Krishnan of the SEBI Act,
Ministry of Finance
1992)
Member (S.4(1)(d)
Whole Time
Mr MS Sahoo of the SEBI Act,
Member, SEBI
1992)
43
Member (S.4(1)(d)
Whole Time
Dr KM Abraham of the SEBI Act,
Member, SEBI
1992)
Member (S.4(1)(d)
Mr Mohandas Pai Director, Infosys of the SEBI Act,
1992)
44
SEBI has enjoyed success as a regulator by pushing
systemic reforms aggressively and successively (e.g. the
quick movement towards making the markets electronic
and paperless rolling settlement on T+2 basis). SEBI has
been active in setting up the regulations as required under
law. It is regulating body.
INTRODUCTION –BSE
45
Bombay Stock Exchange is the oldest stock exchange in
Asia with a rich heritage, now spanning three centuries in
its 133 years of existence. What is now popularly known
as BSE was established as "The Native Share & Stock
Brokers' Association" in 1875.
Over the past 133 years, BSE has facilitated the growth of
the Indian corporate sector by providing it with an
efficient access to resources. There is perhaps no major
corporate in India which has not sourced BSE's services in
raising resources from the capital market.
46
Today, BSE is the world's number 1 exchange in terms of
the number of listed companies and the world's 5th in
transaction numbers. The market capitalization as on
December 31, 2007 stood at USD 1.79 trillion . An
investor can choose from more than 4,700 listed
companies, which for easy reference, are classified into A,
B, S, T and Z groups.
47
small investors to take a long-term view of the market.
48
the Indian capital market. While the Directors Database
provides a single-point access to information on the
boards of directors of listed companies, the ICERS
facilitates the corporate in sharing with BSE their
corporate announcements.
49
The National Stock Exchange (NSE), located in Bombay,
is India's first debt market. It was set up in 1993 to
encouragestock exchange reform through system
modernization and competition. It opened for trading in
mid-1994. It was recently accorded recognition as a
stock exchange by the Department of Company Affairs.
The instruments traded are, treasury bills, government
security and bonds issued by public sector companies.
The Organisation
50
(WDM) segment in June 1994. The Capital Market
(Equities) segment commenced operations in November
1994 and operations in Derivatives segment commenced
in June 2000.
Our Group
DotExIntl. Ltd.
NSDL
Listing
51
NSE plays an important role in helping an Indian
companies access equity capital, by providing a liquid and
well-regulated market. NSE has about 1319 companies
listed representing the length, breadth and diversity of the
Indian economy which includes from hi-tech to heavy
industry, software, refinery, public sector units,
infrastructure, and financial services. Listing on NSE raises
a company’s profile among investors in India and abroad.
Trade data is distributed worldwide through various news-
vending agencies. More importantly, each and every NSE
listed company is required to satisfy stringent financial,
public distribution and management requirements. High
listing standards foster investor confidence and also bring
credibility into the markets.
Introduction of SENSEX
52
SENSEX, first compiled in 1986, was calculated on a
"Market Capitalization-Weighted" methodology of 30
component stocks representing large, well-established and
financially sound companies across key sectors. The base
year of SENSEX was taken as 1978-79. SENSEX today is
widely reported in both domestic and international
markets through print as well as electronic media. It is
scientifically designed and is based on globally accepted
construction and review methodology. Since September 1,
2003, SENSEX is being calculated on a free-float market
capitalization methodology. The "free-float market
capitalization-weighted" methodology is a widely followed
index construction methodology on which majority of
global equity indices are based; all major index providers
like MSCI, FTSE, STOXX, S&P and Dow Jones use the free-
float methodology.
53
onwards). Small wonder, the SENSEX has become one of
the most prominent brands in the country.
54
Concept of FREE FLOAT
Definition of Free-float
55
• Shares held by persons/ bodies with "Controlling
Interest"
• Shares held by Government as promoter/acquirer
• Holdings through the FDI Route
• Strategic stakes by private corporate bodies/
individuals
• Equity held by associate/group companies (cross-
holdings)
• Equity held by Employee Welfare Trusts
• Locked-in shares and shares which would not be sold
in the open market in normal course.
Maintenance of SENSEX
56
that SENSEX and all the other BSE indices maintain their
benchmark properties by striking a delicate balance
between frequent replacements in index and maintaining
its historical continuity. The BSE Index Committee
comprises of capital market expert, fund managers,
market participants and members of the BSE Governing
Board.
57
share prices, for instance, tend to be associated with
increased business investment and vice versa. Share
prices also affect the wealth of households and their
consumption. Therefore, central banks tend to keep an
eye on the control and behavior of the stock market and,
in general, on the smooth operation of financial system
functions. Financial stability is the raison d'être of central
banks.
Depository
58
What is a Depository?
A depository holds shares and other securities of investors
in electronic form. Through Depository Participants (DPs),
it also provides services related to transactions in
securities. Its structure and functioning are similar to the
Bank. Presently in India, there are two depository viz.
National Securities Depository Limited (NSDL) and Central
Depository Services (I) Limited (CDSL). Both of them are
registered with SEBI.
What is a DP?
DP is a member of a Depository who offers its services to
hold securities of Investors (Beneficial Owners) in
dematerialized form. DP is like a Bank branch. It is an
agent of the depository. DP works as an interface between
Depository and Investors. DPs are required to be
registered with SEBI. If an investor wants to avail the
services offered by Depository, he has to open a Demat
account with DP similar to opening of a bank account with
a branch of the bank.
59
CDSL was promoted by Bombay Stock Exchange Limited
(BSE) jointly with leading banks such as State Bank of
India, Bank of India, Bank of Baroda, HDFC Bank,
Standard Chartered Bank, Union Bank of India and
Centurion Bank.
60
About NSDL
61
bank accounts. Transfer of ownership of securities is done
through simple account transfers. This method does away
with all the risks and hassles normally associated with
paperwork. Consequently, the cost of transacting in a
depository environment is considerably lower as compared
to transacting in certificates Promoters / Shareholders
62
Central Securities Depository (CSD)
Functions
63
"global" certificates), or in physical form immobilized
within the CSD.
• Deposit and Withdrawal Supporting deposits and
withdrawals involves the relationship between the
transfer agent and/or issuers and the CSD. It also
covers the CSD's role within the underwriting process
or listing of new issues in a market.
• Dividend, interest, and principal processing, as
well as corporate actions including proxy voting
Paying and transfer agents, as well as issuers are
involved in these processes, depending on the level
of services provided by the CSD and its relationship
with these entities.
• Other services CSDs offer additional services aside
from those considered core services. These services
include Securities Lending and Borrowing, Matching,
and Repo Settlement
• Pledge - Central depositories provide pledging of
share and securities. Every country require to
provide legal framework to protect the interest of the
pledgor and pledgee.
64
FII (Foreign Institutional Investors) in
Indian Stock Market
65
augmentation of foreign exchange reserves and
globalisation of the Indian economy. Simultaneously, the
Government, for the first time, permitted portfolio
investments from abroad by foreign institutional investors
in the Indian capital market. The entry of FIIs seems to be
a follow up of the recommendation of the Narsimhan
Committee Report on Financial System. While
recommending their entry, the Committee, however did
not elaborate on the objectives of the suggested policy.
The committee only suggested that the capital market
should be gradually opened up to foreign portfolio
investments.
From September 14, 1992 with suitable restrictions,
FIIs were permitted to invest in all the securities traded
on the primary and secondary markets, including shares,
debentures and warrants issued by companies which were
listed or were to be listed on the Stock Exchanges in
India.
While presenting the Budget for 1992-93, the then
Finance Minister Dr. Manmohan Singh had announced a
proposal to allow reputed foreign investors, such as
Pension Funds etc., to invest in Indian capital market. To
operationalise this policy announcement, it had become
necessary to evolve guidelines for such investments by
Foreign Institutional Investors (FIIs). The policy
framework for permitting FII investment was provided
under the Government of India guidelines vide Press Note
66
date September 14, 1992. The guidelines formulated in
this regard were as follows:
1. Foreign Institutional Investors (FIIs) including
institutions such as Pension Funds, Mutual Funds,
Investment Trusts, Asset Management Companies,
Nominee Companies and Incorporated/Institutional
Portfolio Managers or their power of attorney
holders (providing discretionary and non-
discretionary portfolio management services) would
be welcome to make investments under these
guidelines.
67
by them in the Securities of companies listed on the
Stock Exchanges in India, in accordance with these
guidelines. Nominee companies, affiliates and
subsidiary companies of a FII would be treated as
separate FIIs for registration, and may seek
separate registration with SEBI.
68
stock market in the country of
domicile/incorporation of the FII.
69
capital inflows, sale proceeds of shares,
dividends and interests;
• Transfer sums from the foreign currency
accounts to the rupee account and vice versa, at
the market rate of exchange;
• Make investments in the securities in India out
of the balances in the rupee account;
• Transfer repatriable (after tax) proceeds from
the rupee account to the foreign currency
account(s);
• f. Repatriate the capital, capital gains, dividends,
incomes received by way of interest, etc. and
any compensation received towards
sale/renouncement of rights offerings of shares
subject to the designated branch of a bank/the
custodian being authorized to deduct with
holding tax on capital gains and arranging to pay
such tax and remitting the net proceeds at
market rates of exchange;
• Register FII's holdings without any further
clearance under FERA.
70
What Does Foreign Institutional Investor - FII
Mean?
An investor or investment fund that is from or registered
in a country outside of the one in which it is
currently investing. Institutional investors include hedge
funds, insurance companies, pension funds and mutual
funds.
71
(f) "Foreign Institutional Investor" means an institution
established or incorporated outside India which
proposes to make investment in India in securities;
72
Participatory notes (P- Notes)
73
India-based securities and then issue participatory notes
to foreign investors. Any dividends or capital gains
collected from the underlying securities go back to the
investors. According to an expert group constituted by the
finance ministry in India, in August 2004, participatory
notes constituted about 46 per cent of the cumulative net
investments in equities by FIIs.
74
How does it work? Investors who buy PNs deposit their
funds in US or European operations of Foreign
Institutional Investors (FII) operating in India . The FII
uses its proprietary account to buy stocks.
However the proposals of SEBI were not clear and this led
to a knee-jerk crash when the markets opened on the
following day (October 17, 2007). Within a minute of
opening trade, the Sensex crashed by 1744 points or
about 9% of its value - the biggest intra-day fall in Indian
stock-markets in absolute terms. This led to automatic
75
suspension of trade for 1 hour. Finance Minister
P.Chidambaram issued clarifications, in the meantime,
that the government was not against FIIs and was not
immediately banning PNs. After the markets opened at
10:55 am, they staged a remarkable comeback and ended
the day at 18715.82, down just 336.04 from Tuesday’s
close after tumbling to a day’s low of 17307.90.
This was, however not the end of the volatility. The next
day (October 18, 2007), the Sensex tumbled by 717.43
points — 3.83 per cent — to 17998.39, its second biggest
fall. The slide continued the next day when the Sensex fell
438.41 points to settle at 17559.98 at the end of the
week, after touching the lowest level of that week at
17226.18 during the day.
76
a 428 point surge. The coming Monday (October 29,
2007) history was created when the Sensex leaped 734.5
points to cross the hallowed 20,000 mark.
77
SCAMS OF SHARE MARKET
Early Life
78
Mehta gradually rose to become a stock broker on the
Bombay Stock Exchange and lived almost like a movie
star in a 15,000 square feet apartment, which had a
swimming pool as well as a golf patch. He also had a taste
for flashy cars, which ultimately led to his downfall. “The
year was 1990. Years had gone by and the driving
ambitions of a young man in the faceless crowd had been
realised. Harshad Mehta was making waves in the stock
market. He had been buying shares heavily since the
beginning of 1990. The shares which attracted attention
were those of Associated Cement Company (ACC),”. The
price of ACC was bid up to Rs 10,000. For those who
asked, Mehta had the replacement cost theory as an
explanation. The theory basically argues that old
companies should be valued on the basis of the amount of
money which would be required to create another such
company.
79
Metha. The broker was dipping illegally into the banking
system to finance his buying.
“In 1992, when I broke the story about the Rs 600 crore
that he had swiped from the State Bank of India, it was
his visits to the bank’s headquarters in a flashy Toyota
Lexus that was the tip-off. Those days, the Lexus had just
been launched in the international market and importing it
cost a neat package,” Dalal wrote in one of her columns
later.
It was this ready forward deal that Harshad Mehta and his
cronies used with great success to channel money from
the banking system.
80
“In this settlement process, deliveries of securities and
payments were made through the broker. That is, the
seller handed over the securities to the broker, who
passed them to the buyer, while the buyer gave the
cheque to the broker, who then made the payment to the
seller.
81
Having figured this out, Mehta needed banks, which could
issue fake BRs, or BRs not backed by any government
securities. “Two small and little known banks - the Bank of
Karad (BOK) and the Metorpolitan Co-operative Bank
(MCB) - came in handy for this purpose. These banks
were willing to issue BRs as and when required, for a fee,”
the authors point out.
82
Interestingly, by the time he died, Mehta had been
convicted in only one of the many cases filed against him.
Till now, it is still unknown what was the real story behind
the entire scam. The recent Hindi movie 'Gafla' showed
this scam in a different perspective. and is 45 years old.
Shares scam
83
Ketan had large borrowings from Global Trust Bank,
whose shares he was ramping up so that he could get a
good deal at the time of its merger with UTI Bank. He got
a Rs 250 crore loan from Global Trust Bank, although
Global Trust’s chairman Ramesh Gelli, who was later
asked to resign, repeatedly asserted that the amount was
less than Rs 100 crore, which was in keeping with the
Reserve Bank of India's normal amount. Ketan and his
associates obtained another Rs 1,000 crore from the
Madhavpura Mercantile Co-operative Bank despite the fact
that RBI regulations ruled that the maximum loan a
broker could obtain was Rs 15 crore. In addition, Mr
Mehta's was involved with Ketan's Business in 1996.
84
Discovery and arrest
85
Ketan Parekh was arrested on December 2, 2002 in
Kolkata.
SATYAM SCAMS
86
described how an initial cover-up for a poor quarterly
performance escalated: "It was like riding a tiger, not
knowing how to get off without being eaten." Raju and his
brother, B Rama Raju, were then arrested by Andhra
Pradesh police on charges of criminal breach of trust,
criminal conspiracy, cheating, falsification of records and
forgery. Raju may face lifetime imprisonment if convicted
of misleading investors. Raju had also opened multiple
benami (dummy) accounts through relatives and friends
and used them to trade in Satyam's shares, violating the
insider trading norm. It has now been alleged that these
accounts may have been the means of siphoning off the
missing funds.
87
Sebi order issued on the 27th of April is very harsh. We
wish to take this opportunity to state the following:
88
"Sebi order has once again come down heavily on Karvy-
DP on account of a few of its sub-brokers having been
involved in opening fictitious/benami accounts. In this
connection we wish to state as under:
89
received the benefit either by way of shares or funds by
way of profit realised on these shares.
90
"Karvy has over 500 branches and over 15,000 primary
market sub brokers. These accounts were opened by a
handful of sub-brokers in two branches at Ahmedabad and
Mumbai.
91
over 25,000 delivery instruction slips received from all
parts of the country.
92
against 15,000 primary market sub-brokers, who work
under the Karvy banner.
"We respect the Sebi order and we will certify the position
by filing our objections within the time stipulated from the
date of this order. We believe that the inspection of our
operations undertaken by the depositories or SEBI did not
reveal any serious violation, especially those with a
malafide intent.
93
"Karvy's management of the rectification of the
ONGC Issue allotment process in 2004 was appreciated
by the Government of India.
94
REGISTERED BROKERS AND SUB-BROKERS
IN BHOPAL
BRANCH OFFICE
95
ADDRESS C-25,INDRAPURI
BHOPAL – 462024
PHONES 0755-5261413, 0755-3880018
CORPORATE EMAIL
CONTACT PERSON
DIRECT PHONE
DYNAMIC EQUITIES PVT.LTD.
BRANCH OFFICE
ADDRESS G.M.TOWER,E-A/29
NEAR 10 NO.SHOP
ARERA COLONY
BHOPAL - 462016
PHONES
CORPORATE EMAIL
CONTACT PERSON
DIRECT PHONE
BRANCH OFFICE
96
DIRECT PHONE 0755-5233211
BRANCH OFFICE
BRANCH OFFICE
97
INDIRA SHARE & STOCK BROKERS PVT.LTD.
BRANCH OFFICE
BRANCH OFFICE
ADDRESS E-56,BDA
98
KOH-E-FIZA
BHOPAL – 462001
PHONES
CORPORATE EMAIL
CONTACT PERSON
DIRECT PHONE
REGISTERED OFFICE
CORRESPONDENCE OFFICE
99
FAX 0755-4276727
CORPORATE EMAIL kmlbhopal@eth.net
WEBSITE www.kalpatarumulti.com
BRANCH OFFICE
100
BHOPAL - 462020
PHONES
CORPORATE EMAIL d240072@iseindia.com
CONTACT PERSON
DIRECT PHONE
ADDRESS 13-B,INDRAPURI
NEAR SBI PLANT AREA BRANCH
BHEL
BHOPAL – 462021
PHONES 0755-4260437
CORPORATE EMAIL kmlbhopal@eth.net
CONTACT PERSON MRS.ABHA JAIN
BRANCH HEAD
kmlbhopal@eth.net
DIRECT PHONE 0755-4223552
BRANCH OFFICE
REGIONAL HEAD
101
vamseedsnr@karvy.com
DIRECT PHONE 0755-3010729
BRANCH OFFICE
BRANCH OFFICE
102
NIRMAL BANG SECURITIES PVT.LTD.
BRANCH OFFICE
ADDRESS SM-12A,MANSAROVAR
COMPLEX,2ND FLOOR
NEAR 7 NO.BUS STOP
BHOPAL – 462016
PHONES 0755-3299739
CORPORATE EMAIL
CONTACT PERSON
DIRECT PHONE
REGISTERED OFFICE
ADDRESS 235,ZONE-I,M.P.NAGAR
BHOPAL – 462011
PHONES 0755-4260000, 0755-4077777, 075
5-4233666
FAX 0755-4288800
103
CORRESPONDENCE OFFICE
ADDRESS 235,ZONE-I,M.P.NAGAR
BHOPAL – 462011
PHONES 0755-4260000, 0755-4077777, 075
5-4233666
FAX 0755-4288800
CORPORATE EMAIL nsbl@sify.com
WEBSITE www.nirmanbroking.com
BRANCH OFFICE
104
BRANCH MANAGER
nsbl@sify.com
DIRECT PHONE 0755-4222400
ADDRESS 232,ZONE-1
MAHARANA PRATAP NAGAR
BHOPAL – 462011
PHONES 0755-4233666, 0755-4233777
FAX 0755-4288800
CORPORATE EMAIL nsbl@sify.com
CONTACT PERSON MR.ABHISHEK JAIN
DIRECTOR
nsbl@sify.com
DIRECT PHONE 0755-4233666
ADDRESS LB-16,B-BLOCK
MANSAROVAR COMPLEX
HOSHANGABAD ROAD
BHOPAL – 462011
PHONES 0755-2551872
CORPORATE EMAIL nsbl@sify.com
CONTACT PERSON MR.VIPIN JAIN
BRANCH MANAGER
nsbl@sify.com
DIRECT PHONE 0755-2551872
105
CORPORATE EMAIL nirman02@airtelmail.in
CONTACT PERSON MR.ABHAS JAIN
DIRECTOR
abhas1972@yahoo.co.in
DIRECT PHONE 0755-4284444
106
CONTACT PERSON MR.YOGESH SAHU
BRANCH MANAGER
nsbl@sify.com
DIRECT PHONE 0755-4034088
BRANCH OFFICE
SHAREKHAN LTD.
107
BRANCH OFFICES
BRANCH OFFICE
108
SWASTIKA INVESTMART LTD.
BRANCH OFFICE
ADDRESS 22-ZONE-II
MAHARANA PRATAP NAGAR
BHOPAL – 462011
PHONES 0755-4299111
CORPORATE EMAIL swastikafin@hotmail.com
CONTACT PERSON MR.SAURABH NUWAL
BRANCH HEAD
sfl_saurabh@yahoo.co.in
DIRECT PHONE 0755-4299222
BRANCH OFFICE
109
RESEARCH
METHODOLOGY
RESEARCH METHODOLOGY
TITLE:
110
To analyse the changing trends of the share market, in
last ten years share market faces so many ups and down.
And also anlayse that how the investor invest their money
with what perception.
• TITLE JUSTIFICATION:
OBJECTIVE
Objective One
111
• To determine the use of Internet for valuable
information and decision-making process.
Objective Two
Objective Three
112
SIGNIFICANE FOR THE RESEARCHER :
RESEARCH DESIGN :
Source of Data.
Method of Data collection.
Types of research.
Sampling
Tools of analysis
Source of Data:
There are many sources which provide information
regarding the research. The data may be of two types
1) Primary Data.
2) Secondary Data
1) Primary Data:
113
Primary data is data which is not already available.
Primary data is found in its original form. Primary data are
those which are collected afresh and for the first time, and
thus happen to be original in character.
• Questionnaires
• Interviews
• Schedules etc.
2) Secondary Data:
114
The research is primarily descriptive as well as analytical
in nature. The sources of information are both primary &
secondary.
SAMPLING METHODOLOGY
Sampling Technique:
Random Sampling:-
115
It gives each element in the population an equal
probability of getting into the sample and all choice is
independent of one another number.
Sampling Unit:
116
Sample size:
Sampling Universe:
Tool of Analysis:
Qualitative.
i. Observation
ii. Case Study
Qualitative:
It is concerned with the qualitative phenomenon i.e.
phenomenon related to or involves quality. For instance,
when we are interested in investigating the reason for
human behavior i.e. why people think or do certain thing.
We quite often talk of “Motivation Research” an important
type of qualitative research. This type of research aims at
discovering the underlying motives and desires, using the
depth interview for the purpose.
Observation:-
117
Observation includes minute observation of activities take
place in the field of research. For observation in this study
secondary data has been used.
Case Study:
118
RESULT ANALYSIS &
INTERPRETATION
119
The trend in last ten years in share market has been
changed like the way selling and buying initially, bidding
form was there to sell or buy. Share price in that time
could change suddenly according to bidding. Investors had
more risk in investing because everything was hidden
even share price also was hidden. So that investors have
to do believe on brokers. The availability of brokers was
also less. Today everything we can watch on screen
investors can know their share price anytime and
investors can buy easily share online through internet by
which investors belief have been increased. SEBI playing
an important role in motivating the investors to invest in
share market. SEBI makes a regulation to protect the
interests of investors in securities, to promote the
development of Securities Market, to regulate the
securities market through which interest of investors is
increased .
120
investors because the investors bear huge losses in a that
single day. The day was black Monday.
Black Monday saw bloodbath on Dalal Street as the Indian
stock markets crashed by over 1430 points in afternoon
trade (the market has since then recovered somewhat),
reminding investors.
121
it. It is generally very difficult for new investors because
they are unable to decide or select a good share which will
profitable for them Many investor new to share trading
overcomplicate the whole process. Investors load their
charts with lots of fancy technical indicators and are
constantly testing out new systems in order to try and find
that holy grail trading system that’s going to make them
rich. However it should be pointed out that the most basic
systems are often the most profitable.
So you can see that this very simple trading strategy can
produce some excellent results and it’s a lot more
effective than most of the overcomplicated systems that a
lot of traders use. Successful share trading isn’t really that
difficult. You simply need to look for shares that are
trending either upwards or downwards and then find a
way of profiting from this trend.
122
To determine the reasons of increasing the number
of investors
The lowering of interest rates on all major saving schemes
is forcing small investors to look at the stock markets.
This has resulted in a sharp jump in liquidity in the
market. Investors are growing more enthusiastic about
shares every day highlighted by sharply higher fund
inflows in the market that propelled the benchmark
market index.
There are many factors that have boosted the sentiment
of not only domestic investors but also foreign institutional
investors who had lately adopted an indifferent approach
towards Indian market.
123
All the scams affect the share market every scams make
the drastic change in share market. In Harshad Mehta
scams share market raise 1000 points in just 16 days
When his scam was opened share market falls down
suddenly through which investor belief was broken. And
they were avoiding the investment in share market. When
the investors are interested to invest the next scam was
held Ketan Parekh scam. In this the share prices of Zee
telefilm raised from Rs.476 to Rs.1555 and it falls down to
Rs.121 in a year. And Satyam scam plays a major role in
the downfall of Indian market. It is because of only one
member our market has decreased a lot. Lot of
shareholders suffers because of him as the share price
comes down like a rocket. Will the market come up and
when it would happen will be a big question.
124
The sensex climbed at a rapid rate, touching record
heights in 2007 -2008. The average Indian investor who
traditionally has been a very conservative investor
became more confident and started investing heavily in
the stock market. The stock market grew in leaps and
bounds and its growth in the last five years itself has been
a phenomenal twenty five per cent. All the economists
and statisticians of the world started making predictions
about India becoming the next economic superpower of
Asia or perhaps the world. All this sounded very good to
be true and the whole country’s attitude seemed to be a
vibrant one. Against this backdrop the unthinkable
happened, the stock market Of the United states of
America or Wall street stock exchange crashed due to a
crisis in the housing finance sector of its leading banks,
caused due to delinquency and non-repayment of housing
loans. This resulted in a panic in the world market
including India. The sensex dropped more than nine
thousand points in the Bombay Stock Exchange. The
Foreign Investment also came down heavily due to a
liquidity crunch in the major companies. The banks
stopped lending to the bankers and in effect the market
came to a sudden stop. The Indian investor panicked
again and started selling like crazy. Major companies
started making announcements like job layoffs to
minimize their losses.
125
Large domestic market will keep fuelling growth of the
Indian economy, though at a lower pace, despite financial
crisis leaving the US and Europe reeling under recession,
experts have said.
126
SUGGESTIONS
127
2. SEBI should imply some mere regulations. So that
investors can feel more secure
3. Small investors cannot afford daily trading so script
128
CONCLUSION
CONCLUSION
129
After going through all the analysis regarding the stock
market in last ten years, we can say that stock market
faces so many ups and down during this time it comes
from its lowest point to its peak at 21000 but then
crashed badly. During its skimming point some scams
were held by which it forms its new peak falls down
suddenly and so badly by which investors are afraid to
invest in this market. Now it is revolving around a 14000-
15500 figure. Though the sensex is a barometer and after
seeing such fluctuations one could be afraid of investing.
Still we can say that people can play safe by investing the
blue-chips and undervalued shares.
During year 2006, if we keep aside that brief period of
loss that the market witnessed from may 10 2006 to June
14 2006, investors’ wealth seem to have grown double
fold with the Sensex touching the 10000, 11000, 12000,
13000 and 14000 levels in the same calendar year.
Investor wealth in terms of market capitalization has been
growing in the range of 6.84-12.41%
And talking about year 2007, we can summarize the
happenings of year 2007 as a year which redefined the
resistance levels at sensex. Strong economic data, heavy
inflow of funds from FIIs towards the close of previous
calendar year and decent to highly encouraging surge in
earnings of top notch companies all pointed to a rosy
2007. The rupee's rise against the US dollar the
130
regulator's decision to restrict investments made through
participatory notes, rising crude oil prices, the sub-prime
mortgage woes in US, concerns over a slowing down US
economy and The Left parties' opposition to the Indo-US
nuclear pact, did halt the market's progress at times. But
the inherent strength of the Indian economy, fairly
buoyant results quarter after quarter, the various chops
and subsidies announced by the government and
sustained efforts made by the market regulator to keep
investor confidence in the system alive kept the
momentum going.
Presently the hike and seek being played by crude prices,
inflation and RBI is affecting our market to a great extent.
And adding to the worries are global slowdown, political
instability, serial bomb blasts, negative public sentiments
etc. It is indeed surprising that though the epicenter of
the sub-prime crisis is the US, the tremors are being felt
in India. The loss of market cap in the US is only 14 per
cent vis-À-vis 38 per cent in India.
But even after analyzing the causes for downturn, we can
say that India story has not ended; else $200 billion with
institutional investors would have fled for safer waters.
Exports being 14 per cent of GDP, India is less vulnerable
to external shocks than many other Asian nations. Political
uncertainties too have narrowed down. Savings in India
have risen at a historic rate of 35 per cent on the growing
GDP base; 17 per cent of this is in gold, commodities and
131
real-estate while financial savings represent 18 per cent of
GDP. Even this is skewed towards deposits both banking
and non-banking, while the percentage of savings in
shares and debentures is a mere 6.3 per cent. If this
percentage goes to 25 per cent, it would amount to $40
billion of incremental money being diverted to capital
markets. So even after such downturns, we can be
hopeful for a positive market.
132
QUESTIONS FOR
INTERVIEW
133
For Investors:-
134
BIBLIOGRAPHY
135
BIBLIOGRAPHY
1. BOOKS/MAGAZINES REFFERED:
• DALAAL STREET
• INDIA TODAY
• BUSINESS TIMES
2. WEBSITES REFFERED:
• www.bseindia.com
• www.nseindia.com
• www.sebi.gov.in
• www.moneycontrol.com
3. SEARCH ENGINES:
• www.google.co.in
• www.wikipedia.org.in
136
THANK YOU
137
138