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INDUSTRY PROFILE

NATIONAL STOCK EXCHANGE

The National Stock Exchange (NSE) is Indias leading stock exchange covering various cities and town across the country. NSE was set up by leading institutions to provide a modern, fully automated screen based trading system with national reach. The exchange has brought about unparalleled transparency, speed and efficiency, safety and market integrity. It has set up 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. The market today uses slate of art information technology to provide an efficient and transparent trading, clearing and settlement mechanism, and has witnessed several innovations in products and services viz., dematerialization of stock exchange governance, screen based trading, compression of settlement cycles, dematerialization and electronic transfer of securities, securities lending and borrowing, professionalisation of trading members, fine turned risk management systems, emergence of clearing corporations to assume counter party risks, market of debt and derivative instruments and intensive use of information technology.

The National Stock Exchange of India Limited has genesis in the report of the High Powered Study Group of Establishment of New Stock Exchanges, which recommended promotion of a National Stock Exchange by financial institutions (FIS) to provide access to investors from all across the country on an equal footing. Based on the recommendations, NSE was promoted by leading Financial Institutions at the behest of the Government of India and was incorporated in November 1992 as a tax paying company unlike other stock exchanges in the country.

On its recognition as a stock exchange under the Securities Contracts (Regulation) Act, 1956 in April 1993, NSE commenced operations in the Wholesale Debit Market (WDM) segment commenced operations in November 1994 operations in Derivatives segment commenced in June 2000. OUR MISSION NSEs, 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 nationwide 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 have become industry benchmarks and are being emulated by other market participants. NSE is more than a mere market facilitator. Its that force which is guiding the industry towards new horizons and greater opportunities. PROMOTERS NSE has been promoted by leading financial institutions, banks, insurance companies and other financial intermediaries: Industrial Development Bank of India Limited. Industrial Finance Corporation of India Limited. Life Insurance Corporation of India State Bank of India ICICI Bank Limited IL & FS Trust Company Limited

Stock Holding Corporation of India Limited SBI Capital Markets Limited The Administrator of the Specified Undertaking of Unit Trust of India Bank of Baroda Canara Bank General Insurance Corporation of India National Insurance Company Limited The New India Assurance Company Limited The Oriental Insurance Company Limited Punjab National Bank Oriental Bank of Commerce Corporation Bank Indian Bank Union Bank of India

OUR LOGO The logo of the NSE symbolize 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 logo symbolizes 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. CORPORATE STRUCTURE NSE is one of the first demutualised 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 setup as a public limited company, owned by the leading institutional investors in the country. From day one, NSE has adopted the form of a demutualised exchange the ownership, management and trading is in the hands of three different sets of people. NSE is owned by a set

of leading financial institutions, banks, insurance companies and other financial intermediaries and is managed by professional, who do not directly or indirectly trade on the Exchange. This has completely eliminated any conflict of interest and helped NSE in aggressively pursuing policies and practices within a public interest framework. The NSE model however, does not preclude, but in fact accommodates involvement, support and contribution of trading members in a variety of way. Its board comprises of senior executives from promoter institutions, eminent professionals in the fields of law, economics, accountancy, finance, taxation, etc. public representative, nominees of SEBI and one full time executive of the Exchange. While the Board deals with broad policy issues decisions relating to market operations are delegated by the Board to various committee constituted by it. Such committee includes representatives from trading members, professionals, the public and the management. The dayto-day management of the Exchange is delegated to the Managing Director who is supported by a team of professional staff. BOMBAY STOCK EXCHANGE The Stock Exchange, Mumbai, which was established in 1875 as The Native Share and Stockbrokers Association (a voluntary non-profit making association), has evolved over the years into it present status as the premier Stock Exchange in the country. It may be noted that the Stock Exchange is the oldest one in Asia, even older than the Tokyo Stock Exchange, which was founded in 1878. The Exchange while providing an efficient market also upholds the interests of the investors and ensures redressal of their grievances, whether against the companies or its own member brokers. It also strives to educate and enlighten the investors by making available necessary informative inputs. A Governing Board comprising of 9 elected directors (one third of them retire every year by rotation) and Executive Director, three Government nominees, a Reserve Bank of India nominee and five public representatives, is the apex which regulates the exchange and decides its policies.

The Governing Board following the election of directors annually elects a President, Vide President and an Honorary Treasurer from among the elected directors.

The Executive Director as the Chief Executive Officer is responsible for the day-do-day administration of the Exchange. The exchange has obtained permission from Securities and Exchange Board of India (SEBI) for expansion of its BSE-on-Line Trading (BOLT) network to locations outside Mumbai. In term of the permission granted by SEBI, the members of the Exchange are free to install their trading terminals to cities where there are no Stock Exchange. However, at centers where the other exchanges are located, the Exchange is required to sign a Memorandum of Understanding with these Exchanges permitting it to install the BOLT terminals in their jurisdictional areas.

The expression of BOLT network was inaugurated by the Finance Minister, Government of India, Sri P. Chidambaram on August 30, 1997. The Exchange has signed Memorandum of Understanding with eleven Stock Exchanges, viz., Calcutta, Pune, Adhmedabad, Saurashtra, Kulch (Rajkot), Madaypradesh, Vadodara, Bhubaneshwar and Magadh (i.e., Patna) Jaipur, Coimbatore and Chennai (Madras) to provide BOLT connections to the members of these Exchanges after obtaining necessary clearance from SEBI. The BOLT network has been expanded to centers outside Mumbai and covers 232 centres having 726 VSATs (Very Small Aperture Terminals) and 1020 TWSs (Trader Work Stations) as on October 31, 1999. Of these, 648 VSATs and 872 TWSs respectively are installed outside Mumbai. With the expansion of BOLT outside Mumbai. The total average daily turnover at the Exchange has increased from Rs.1064 crores in August 1997 to Rs. 1404 crores in April 1998 and further to Rs.2885 crores in October 1999. The average daily turnover at the Exchange has increased from Rs. 851 crores in 1997-98 to R.1284 crores in 1998-99 and further to Rs.2885 crores in 1999-2000 (April October 1999). Some of the important aspects of the working of the stock Exchange, Mumbai are discussed below.

TRADING

The Exchange has switched over from the open outcry trading system to a fully automated computerized mode of trading known as BOLT (BSE On Line Trading) System. This system, which is both order and quote driven was commissioned on March 14, 1995. It facilitates more efficient processing, automatic order matching and faster execution of trades. Above all, the system is more transparent. The members now enter orders / quotes on their Trader Work Stations (TWSs) in their offices instead of assembling in the trading ring.

The strips traded on the Exchange have been classified into A, B1, B2, C, F and Z group. The number of strips listed on the Exchange under A, B1 and B2 groups which represent the equity segments as on October 1999 was 152, 1109 and 4510 respectively. The F group represents the debt market (fixed income securities) segment wherein 670 securities were listed as at the end of October 1999. The Z group was introduced in the month of July 1999 and covers the list of companies that fail to comply with listing requirements and also fail to resolve investor complaints. The Z group comprises of 539 scripts as of October 1999. The C group covers the odd lot securities in A, B1 and B2 groups and Rights renunciations.

The stock Exchange, Mumbai, is the only Stock Exchange in the country to provide a facility of on-line trading in odd lot securities and rights renunciations. This facility of trading in odd lots of securities and Rights renunciations not only offers an exit route to investors to dispose of their odd lot of securities but also provides them an opportunity to consolidate their securities into market lots. Trading in this segment covers all the scripts listed in the equity segment. The trading cycle for all these groups of securities is weekly. The trading cycle for A, B1, B2, C and Z group securities representing the equity segment is from Monday to Friday and that for F group securities representing the debt market is from Thursday to Wednesday.

The Transactions in A group scripts are allowed to be carried forward from one settlement to another settlement subject to a maximum of 75 days from the date of outstanding positions in A group scripts. The trading session for carry forward of transactions from one settlement to another is conducted on Saturdays, i.e., at the end of every trading cycle in the equity segment. Trading on the BOLT system is conducted from Monday to Friday between 10.00 a.m. and 3.30 p.m. while the carry forward session for A group securities is conducted on Saturdays between 10.00 a.m. and 12.30 p.m. The Information Systems Department of the Exchange generates the following statements that can be downloaded by the members in their back offices on a daily basis. a. Statements giving details of the daily transactions entered into by the members. b. Statements giving details of margins payable by the members in respect of the trades executed by them.

The members are allowed to enter into transactions on behalf of their Institutional clients, viz., Scheduled Commercial Banks, Indian Financial Institutions (IFIs) and Foreign Institutional Investors (FIIs) and Mutual Funds registered with SEBI. The settlement of the trades (money and securities) done on behalf of the Institutions may be either through the member himself or through a SEBI registered Custodian appointed by an institution. In case the delivery / payment is to be given or taken by a Custodian on behalf of an Institution; the former has to confirm the trade done by a member. For this purpose, the Custodians have been admitted as members of the Clearing House. In case the Custodian does not confirm an institutional transaction, the liability for pay in funds or securities devolves on the concerned member

COMPANY PROFILE

FOUNDERS PROFILE:

Few men in history have made as dramatic a contribution to their countrys economic fortunes .One among them is the founder of Reliance, Sh. Dhirubhai H Ambani. Fewer still have left behind a legacy that is more enduring and timeless. As with all great pioneers, there is more than one unique way of describing the true genius of Dhirubhai: The corporate visionary, the unmatched strategist, the proud patriot, the leader of men, the architect of Indias capital markets, and the champion of shareholder interest. . But the role Dhirubhai cherished most was perhaps that of Indias greatest wealth creator. In one lifetime, he built, starting from the proverbial scratch, Indias largest private sector enterprise. When Dhirubhai embarked on his first business venture, he had a seed capital of barely US$ 300 (around Rs 14,000). Over the next three and a half decades, he converted this fledgling enterprise into an Rs 60,000 crore colossus-an achievement which earned Reliance a place on the global Fortune 500 list, the first ever Indian private company to do so. Dhirubhai is widely regarded as the father of Indias capital markets. In 1977, when Reliance Textile Industries Limited first went public, the Indian stock market was a place patronized by a small club of elite investors which dabbled in a handful of stocks.

Undaunted, Dhirubhai managed to convince a large number of first-time retail investors to participate in the unfolding Reliance story and put their hard-earned money in the Reliance Textile IPO, promising them, in exchange for their trust, substantial return on their investments. It was to be the start of one of great stories of mutual respect and reciprocal gain in the Indian markets. Under Dhirubhais extraordinary vision and leadership, Reliance scripted one of the greatest growth stories in corporate history anywhere in the world, and went on to become Indias largest private sector enterprise.

CHAIRMANS PROFILE:

Regarded as one of the foremost corporate leaders of contemporary India, Anil Dhirubhai Ambani is the Chairman companies, of all listed Group Reliance

namely:

Communications, Reliance Capital, Reliance Energy and Reliance Natural Resources Limited.

He is also Chairman of the Board of Governors of Dhirubhai Ambani Institute of Information and Communication Technology, Gandhi Nagar, Gujarat.

Till recently, he also held the post of Vice Chairman and Managing Director in Reliance Industries Limited (RIL), Indias largest private sector enterprise. Anil D Ambani joined Reliance in 1983 as Co-Chief Executive Officer, and was centrally involved in every aspect of the companys management over the next 22 years. He is credited with having pioneered a number of path-breaking financial innovations in the Indian capital markets. He spearheaded the countrys first forays into the overseas capital markets with international public offerings of global depositary receipts, convertibles and bonds. Starting in 1991, he directed Reliance Industries in its efforts to rise over US$ 2 billion. He also steered the 100-year Yankee bond issue for the company in January 1997. He is a member of: Wharton Board of Overseers, the Wharton School, USA. Central Advisory Committee, Central Electricity Regulatory Commission. Board of Governors, Indian Institute of Management, Ahmadabad. Board of Governors Indian Institute of Technology, Kanpur. In June 2004, he was elected for a six-year term as an independent member of the Rajya Sabha, Upper House of Indias Parliament a position he chose to resign voluntarily on March 25, 2006. Awards and Achievements Conferred the CEO of the Year 2004 in the Plats Global Energy Awards. Rated as one of Indias Most Admired CEOs for the sixth consecutive year in the Business Barons TNS Mode opinion poll, 2004

Conferred The Entrepreneur of the Decade Award by the Bombay Management Association, October 2002. Awarded the First Wharton Indian Alumni Award by the Wharton India Economic Forum (WIEF) in recognition of his contribution to the establishment of Reliance as a global leader in many of its business areas, December 2001. Selected by Asia week magazine for its list of Leaders of the Millennium in Business and Finance and was introduced as the only new hero in Business and Finance from India, June 1999.

About Us
Reliance Securities Limited is a Reliance Capital company and part of the Reliance Anil Dhirubhai Ambani Group. Reliance Securities is a permitted user of the brand "Reliance Money" for promoting its various products and services. Reliance Securities endeavors to change the way investors transact in equities markets and avails services. It provides customers with access to Equity, Derivatives, Portfolio Management Services, Investment Banking, and Mutual Funds & IPOs. It also offers secured online share trading platform and investment activities in secure, cost effective and convenient manner. To enable wider participation, it also provides the convenience of trading offline through variety of means, including Call & Trade, Branch dealing Desk and its network of affiliates. Reliance Money through its pan India presence with 6,233 outlets, has more than 3.5 million customers. Reliance Capital is one of India's leading and fastest growing private sector financial services companies, and ranks among the top 3 private sector financial services and banking groups, in terms of net worth.

Awards and Achievements


India's largest e-broking house and Best Equity House 2009 - Awarded by Dun and Bradstreet 2009.Reliance Money has been rated no. 1 by Starcom Worldwide for online security and cost effectiveness in 2007. Reliance Money has been awarded Debutant Franchisor of the Year 2007 by Franchise India Holdings Ltd.

Reliance Securities

Reliance Securities, the broking arm of Reliance Capital is the one of the Indias leading retail broking houses in India, providing customers with access to equities, equity options and commodities futures, wealth management, wealth management services, mutual funds, IPOs and investment banking. Reliance Securities has over 7 lac retail broking accounts through its pan India presence with over 6,500 outlets. Reliance Money The third party distribution business of Reliance Capital, branded as Reliance Money is a comprehensive financial services and solutions provider, providing customers with access to life and general Insurance products, money transfer, currency exchange, loans and gold coins. OUR OFFERINGS Cash and carry (CNC): CNC Stands for Cash n Carry. Transaction done in CNC is delivery transactions. On buy transactions there will be 100% margin blocking for the trading day. Sell transaction will be allowed based on holdings available and sale proceeds would be released for the trading day. CNC is preferable for delivery transactions in cash market.

In case clients want, CNC position can be converted to other product (NRML / MIS) before the specified cut-off subject to availability of required margin.

Super Multiplier
To give a boost to client trading potential, Reliance Securities Ltd (RSL) has launched "Super Multiplier". This product is an extension to our existing MIS (Margin Intraday Square-off) product, wherein client gets exposure against margin on intraday trades & if client doesnt square-off or convert such positions by 3:20 PM, RSL will square-off such open position before market closes.

Super Multiplier is a product that offers approximately 10 times exposure in cash segment, 10 times in stock futures and 18 times in index futures.

Advantages of Super Multiplier

These products will allow client to take high exposure against margin. A feature to unleash client trading potential to take advantage of market opportunities. In case client is not able to close his open position, the position will be auto squared-off. Client doesnt need to be in front of the trading system throughout the market hours.

Client cannot take positions in options under Super Multiplier (MIS) product.

In case of any loss incurred by the client because of non squaring off or delay in auto square-off due to market conditions, Reliance Securities Ltd (RSL) cannot be held liable for such losses. Further Auto square-off orders will be placed at market order & hence will match with the best price at exchange.

Margin Intraday Square-off

To facilitate clients to take leverage in intraday position in cash & futures, Reliance securities Ltd (RSL) offer "MIS" (Margin Intraday Square-off) product for its clients. Unlike CNC instead of blocking 100% as margin, it only blocks a pre-specified percentage as margin.

Clients can buy and sell specific stocks during the day. Clients need to square off their positions before 3.20pm OR RSL will square-off such open position before market closes. MIS is preferably done for intraday square off positions in cash market.

Margin Intraday Square off is a product that offers approximately 5 times exposure in cash segment, 6.5 times in stock futures and 10 times in index futures.

By default every customer is assigned with MIS product for trading. In case clients want, MIS position can be converted to other product (NRML / CNC) before the specified cut-off subject to availability of required margin. Client cannot take positions in options under Margin Intraday Square-off (MIS) product. In case of any loss incurred by the client because of Non squaring off or delay in auto square-off due to market conditions, Reliance Securities cannot be held liable for such losses. Further Auto square-off orders will be placed at market order & hence will match with the best price at exchange. NRML Cash Reliance Securities Ltd. (RSL) offers its clients a facility to take a delivery position by paying the required margin in a stock as specified during the day and pay the balance not later than 5 days from the exchange payout day.

Example: If clients net ledger value is Rs. 20,000 (Cash + Collateral), he can take exposure upto Rs. 80,000 in delivery. Client has to pay the balance by the exchange payout day (T+2) failing which he has to make payment on or before 5 working days from the exchange payout day.

If the client has taken such position, he has to pay anytime between trade day to 5 working days from the exchange payout date. Meanwhile, the client can also sell such securities. In such a case any profit/loss arising out of such transaction, will be posted to client ledger.

In case the client does not pay by the exchange payout day (T+2), RSL will levy delayed payment charges from the exchange payout day (T+2 day) onwards.

However, clients have to necessarily maintain the minimum margin requirement. In case client fails to maintain the minimum margin or his margin requirement has been increased by the exchange for any reason RSL will be empowered to square-off such positions. Any loss arising due to such square-off shall be borne by the client.

Plus Multiplier
To give a boost to client trading potential, Reliance Securities Ltd (RSL) has launched "Plus Multiplier". This product is an extension to our existing MIS (Margin Intraday Square-off) product, wherein client gets exposure against margin on intraday trades & if client doesnt square-off or convert such positions by 3:20 PM, RSL will square-off such open position before market closes.

Plus Multiplier is a product that offers approximately 10 times exposure in cash segment, 8 times in stock futures and 15 times in index futures.

Advantages of plus Multiplier These products will allow client to take high exposure against margin. A feature to unleash client trading potential to take advantage of market opportunities. In case client is not able to close his open position, the position will be auto squared-off. Client doesnt need to be in front of the trading system throughout the market hours. Client cannot take positions in options under Plus Multiplier (MIS) product.

In case of any loss incurred by the client because of non squaring off or delay in auto square-off due to market conditions, Reliance Securities Ltd (RSL) cannot be held liable for such losses. Further Auto square-off orders will be placed at market order & hence will match with the best price at exchange. NRML Derivatives If client wants to take positions in futures & options, he has to select "NRML" as product type. In case client takes position is Futures & options, margin percentage as specified by exchange will be blocked. Derivatives positions are marked to market on daily basis. In case margin falls below the exchange margin requirement, client is required to bring in additional margin, failure to which may result in position square-off.

However client can also take position in futures only by selecting "MIS" product, but positions taken under "MIS" are squared-off by end of the day. We have launched Plus Multiplier & Super Multiplier an intraday square-off product wherein lower margin is blocked if client is taking position in stock & index futures. POLICIES:

Code of Conduct for Directors and Senior Management

The Board of Directors (the "Board") and the senior management of Reliance Capital Limited ("Reliance Capital") subscribe to the following Code of Conduct adopted by the Board. They would: 1. Use due care and diligence in performing their duties of office and in exercising their powers attached to that office 2. Act honestly and use their powers of office, in good faith and in the best interests of Reliance Capital as a whole 3. Not make improper use of information nor take improper advantage of their position as a Director 4. Not allow personal interests to conflict with the interests of Reliance Capital 5. Not engage in conduct likely to bring discredit upon Reliance Capital 6. Be independent in judgment and actions, and to take all reasonable steps to be satisfied as to the soundness of all decisions taken by the Board of Directors 7. Ensure the confidentiality of information they receive whilst being in office of Director and is only disclosed if authorized by the company, or the person from whom the information is provided, or as required by law Besides, the Code of Ethics, all Business Policies of Reliance Capital apply to Directors holding executive positions and executives in senior management.

Guidelines for NBFCs o o o

Guidelines on fair practice code Internal Principles and procedures in determining interest and other charges Policy Guidelines on KYC and AML measures including demat.