Astudy On Violatility of Nifty Indicies

Introduction
Secondary market
Secondary market refers to a market where securities are traded after being initially offered to the
public in the primary market and/or listed on the Stock Exchange. Majority of the trading is done in the
secondary market. Secondary market comprises of equity markets and the debt markets.
Role of the Secondary Market
For the general investor, the secondary market provides an efficient platform for trading of his
securities. For the management of the company, Secondary equity markets serve as a monitoring and
control conduit—by facilitating value-enhancing control activities, enabling implementation of
incentive-based management contracts, and aggregating information (via price discovery) that guides
management decisions.
Difference between the Primary Market and the Secondary Market
In the primary market, securities are offered to public for subscription for the purpose of raising
capital or fund. Secondary market is an equity trading venue in which already existing/pre-issued
securities are traded among investors. Secondary market could be either auction or dealer market.
While stock exchange is the part of an auction market, Over-the-Counter (OTC) is a part of the dealer
market.
Screen Based Trading
The 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. This was time consuming and
inefficient. This imposed limits on trading volumes and efficiency. In order to provide efficiency,
liquidity and transparency, NSE introduced a nationwide, on-line, fully-automated screen based trading
system (SBTS) where a member can punch into the computer the quantities of a security and the price
at which he would like to transact, and the transaction is executed as soon as a matching sale or buy
order from a counter party is found.
NEAT
NSE is the first exchange in the world to use satellite communication technology for trading. Its trading
system, called National Exchange for Automated Trading (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. It has uptime record of
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99.7%. For all trades entered into NEAT system, there is uniform response time of less than one
second.
Place orders with the broker
You may go to the broker’s office or place an order on the phone/internet or as defined in the Model
Agreement, which every client needs to enter into with his or her broker.
An investor get access to internet based trading facility
There are many brokers of the NSE who provide internet based trading facility to their clients. Internet
based trading enables an investor to buy/sell securities through internet which can be accessed from a
computer at the investor’s residence or anywhere else where the client can access the internet.
Investors need to get in touch with an NSE broker providing this service to avail of internet based
trading facility.
Contract Note
Contract Note is a confirmation of trades done on a particular day on behalf of the client by a trading
member. It imposes a legally enforceable relationship between the client and the trading member with
respect to purchase/sale and settlement of trades. It also helps to settle disputes/claims between the
investor and the trading member. It is a prerequisite for filing a complaint or arbitration proceeding
against the trading member in case of a dispute. A valid contract note should be in the prescribed
form, contain the details of trades, stamped with requisite value and duly signed by the authorized
signatory. Contract notes are kept in duplicate, the trading member and the client should keep one
copy each. After verifying the details contained therein, the client keeps one copy and returns the
second copy to the trading member duly acknowledged by him.
Contract note issued by the stock broker
A broker has to issue a contract note to clients for all transactions in the form specified by the stock
exchange. The contract note inter-alia should have following:
Name, address and SEBI Registration number of the Member broker.

Name of partner/proprietor/Authorised Signatory.
Dealing Office Address/Tel. No./Fax no., Code number of the member by the Exchange.
Contract number, date of issue of contract note, settlement number and time period for
settlement.
Constituent (Client) name/Code Number.
Order number and order time corresponding to the trades.
Trade number and Trade time.
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Quantity and kind of Security bought/sold by the client.
Brokerage and Purchase/Sale rate.
Service tax rates, Securities Transaction Tax and any other charges levied by the broker.
Appropriate stamps have to be affixed on the contract note or it is mentioned that the
consolidated stamp duty is paid.
Signature of the Stock broker/Authorized Signatory.
maximum brokerage that a broker can charge
The maximum brokerage that can be charged by a broker from his clients as commission cannot be
more than 2.5% of the value mentioned in the respective purchase or sale note.
Trade on a recognized stock exchange only for buying/selling shares
An investor does not get any protection if he trades outside a stock exchange. Trading at the exchange
offers investors the best prices prevailing at the time in the market, lack of any counter-party risk
which is assumed by the clearing corporation, access to investor grievance and redressal mechanism of
stock exchanges, protection upto a prescribed limit, from the Investor Protection Fund etc.
Broker or sub broker is registered
One can confirm it by verifying the registration certificate issued by SEBI. A broker's registration
number begins with the letters ‘INB’ and that of a sub broker with the letters ‘INS’.
Precautions must one take before investing in the stock markets
Here are some useful pointers to bear in mind before you invest in the markets:
Make sure your broker is registered with SEBI and the exchanges and do not deal with unregistered
intermediaries.
Ensure that you receive contract notes for all your transactions from your broker within one
working day of execution of the trades.
All investments carry risk of some kind. Investors should always know the risk that they are taking
and invest in a manner that matches their risk tolerance.
Do not be misled by market rumours, luring advertisement or ‘hot tips’ of the day.
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Take informed decisions by studying the fundamentals of the company. Find out the business
the company is into, its future prospects, quality of management, past track record etc Sources of
knowing about a company are through annual reports, economic magazines, databases available
with vendors or your financial advisors.
If your financial advisor or broker advises you to invest in a company you have never heard of, be
cautious. Spend some time checking out about the company before investing.
Do not be attracted by announcements of fantastic results/news reports, about a company. Do

your own research before investing in any stock.
Do not be attracted to stocks based on what an internet website promotes, unless you have done
adequate study of the company.
Investing in very low priced stocks or what are known as penny stocks does not guarantee high
returns.
Be cautious about stocks which show a sudden spurt in price or trading activity.
Any advise or tip that claims that there are huge returns expected, especially for acting quickly,
may be risky and may to lead to losing some, most, or all of your money.
Do’s and Don’ts should an investor bear in mind when investing in the stock markets
 Ensure that the intermediary (broker/sub-broker) has a valid SEBI registration certificate.
 Enter into an agreement with your broker/sub-broker setting out terms and conditions clearly.
 Ensure that you give all your details in the ‘Know Your Client’ form.
 Ensure that you read carefully and understand the contents of the ‘Risk Disclosure Document’
and then acknowledge it.
 Insist on a contract note issued by your broker only, for trades done each day.
 Ensure that you receive the contract note from your broker within 24 hours of the transaction.
 Ensure that the contract note contains details such as the broker’s name, trade and number,
transaction price, brokerage, service tax, securities transaction tax etc. and is signed by the
Authorised Signatory of the broker.
 To cross check genuineness of the transactions, log in to the NSE website (www.nseindia.com)
and go to the ‘trade verification’ facility extended by NSE. Issue account payee
cheques/demand drafts in the name of your broker only, as it appears on the contract
note/SEBI registration certificate of the broker.
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 While delivering shares to your broker to meet your obligations, ensure that the delivery
instructions are made only to the designated account of your broker only.
 Insist on periodical statement of accounts of funds and securities from your broker. Cross
check and reconcile your accounts promptly and in case of any discrepancies bring it to the
attention of your broker immediately.
 Please ensure that you receive payments/deliveries from your broker for the transactions
entered by you, within one working day of the payout date.
 Ensure that you do not undertake deals on behalf of others or trade on your own name and
then issue cheques from a family members’/ friends’ bank accounts.
 Similarly, the Demat delivery instruction slip should be from your own Demat account, not
from any other family members’/friends’ accounts.
 Do not sign blank delivery instruction slip(s) while meeting security payin obligation.
 No intermediary in the market can accept deposit assuring fixed returns. Hence do not give
your money as deposit against assurances of returns.
 ‘Portfolio Management Services’ could be offered only by intermediaries having specific
approval of SEBI for PMS. Hence, do not part your funds to unauthorized persons for Portfolio
Management.
Products in the Secondary Markets
Following are the main financial products/instruments dealt in the Secondary market which may be
divided broadly into Shares and Bonds:
Shares:
 Equity Shares: An equity share, commonly referred to as ordinary share, represents the form
of fractional ownership in a business venture.
 Rights Issue/ Rights Shares: The issue of new securities to existing shareholders at a ratio to
those already held, at a price. For e.g. a 2:3 rights issue at Rs. 125, would entitle a shareholder
to receive 2 shares for every 3 shares held at a price of Rs. 125 per share.
 Bonus Shares: Shares issued by the companies to their shareholders free of cost based on the
number of shares the shareholder owns.
 Preference shares: Owners of these kind of shares are entitled to a fixed dividend or dividend
calculated at a fixed rate to be paid regularly before dividend can be paid in respect of equity
share. They also enjoy priority over the equity shareholders in payment of surplus. But in the
event of liquidation, their claims rank below the claims of the company’s creditors,
bondholders/debenture holders.
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 Cumulative Preference Shares: A type of preference shares on which dividend accumulates if
remained unpaid. All arrears of preference dividend have to be paid out before paying dividend
on equity shares.
 Cumulative Convertible Preference Shares: A type of preference shares where the dividend
payable on the same accumulates, if not paid. After a specified date, these shares will be
converted into equity capital of the company.
Bond: is a negotiable certificate evidencing indebtedness. It is normally unsecured. A debt security is

generally issued by a company, municipality or government agency. A bond investor lends money to
the issuer and in exchange, the issuer promises to repay the loan amount on a specified maturity date.
The issuer usually pays the bond holder periodic interest payments over the life of the loan. The
various types of Bonds are as follows:
 Zero Coupon Bond: Bond issued at a discount and repaid at a face value. No periodic interest is
paid. The difference between the issue price and redemption price represents the return to the
holder. The buyer of these bonds receives only one payment, at the maturity of the bond.
 Convertible Bond: A bond giving the investor the option to convert the bond into equity at a
fixed conversion price.
 Treasury Bills: Short-term (up to one year) bearer discount security issued by government as a
means of financing their cash requirements.
Equity Investment
Invest in equities in particular
When you buy a share of a company you become a shareholder in that company. Shares are also
known as Equities. Equities have the potential to increase in value over time. Research studies have
proved that the equity returns have outperformed the returns of most other forms of investments in
the long term. Investors buy equity shares or equity based mutual funds because :-
Equities are considered the most rewarding, when compared to other investment options if held over
a long duration.
Research studies have proved that investments in some shares with a longer tenure of investment
have yielded far superior returns than any other investment. The average annual retrun of the stock
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market over the period of last fifteen years, if one takes the Nifty index as the benchmark to compute
the returns, has been around 16%.
However, this does not mean all equity investments would guarantee similar high returns. Equities are
high risk investments. Though higher the risk, higher the potential returns, high risk also indicates that
the investor stands to lose some or all his investment amout if prices move unfavourably. One needs to
study equity markets and stocks in which investments are being made carefully, before investing.
Average return on Equities in India
If we take the Nifty index returns for the past fifteen years, Indian stock market has returned about
16% to investors on an average in terms of increase in share prices or capital appreciation annually.
Besides that on average stocks have paid 1.5% dividend annually. Dividend is a percentage of the face
value of a share that a company returns to its shareholders from its annual profits. Compared to most
other forms of investments, investing in equity shares offers the highest rate of return, if invested over
a longer duration.
Factors that influence the price of a stock
Broadly there are two factors: (1) stock specific and (2) market specific. The stock-specific factor is
related to people’s expectations about the company, its future earnings capacity, financial health and
management, level of technology and marketing skills.
The market specific factor is influenced by the investor’s sentiment towards the stock market as a
whole. This factor depends on the environment rather than the performance of any partic ular
company. Events favourable to an economy, political or regulatory environment like high economic
growth, friendly budget, stable government etc. can fuel euphoria in the investors, resulting in a boom
in the market. On the other hand, unfavourable events like war, economic crisis, communal riots,
minority government etc. depress the market irrespective of certain companies performing well.
However, the effect of market-specific factor is generally short-term. Despite ups and downs, price of a
stock in the long run gets stabilized based on the stock-specific factors. Therefore, a prudent advice to
all investors is to analyse and invest and not speculate in shares.
Acquiring equity shares
You may subscribe to issues made by corporates in the primary market. In the primary market,
resources are mobilized by the corporates through fresh public issues (IPOs) or through private
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placements. Alternately, you may purchase shares from the secondary market. To buy and sell
securities you should approach a SEBI registered trading member (broker) of a recognized stock
exchange.
Bid and Ask price
The ‘Bid’ is the buyer’s price. It is this price that you need to know when you have to sell a stock. Bid is
the rate/price at which there is a ready buyer for the stock, which you intend to sell.
The ‘Ask’ (or offer) is what you need to know when you're buying i.e. this is the
rate/ price at which there is seller ready to sell his stock. The seller will sell his stock if he gets the
quoted “Ask’ price.
If an investor looks at a computer screen for a quote on the stock of say XYZ Ltd, it might look
something like this:
PORTFOLIO
A Portfolio is a combination of different investment assets mixed and matched for the purpose of
achieving an investor's goal(s). Items that are considered a part of your portfolio can include any asset
you own-from shares, debentures, bonds, mutual fund units to items such as gold, art and even real
estate etc. However, for most investors a portfolio has come to signify an investment in financial
instruments like shares, debentures, fixed deposits, mutual fund units.
Diversification
It is a risk management technique that mixes a wide variety of investments within a portfolio. It is
designed to minimize the impact of any one security on overall portfolio performance. Diversification
is possibly the best way to reduce the risk in a portfolio.
Advantages of having a diversified portfolio
A good investment portfolio is a mix of a wide range of asset class. Different securities perform
differently at any point in time, so with a mix of asset types, your entire portfolio does not suffer the
impact of a decline of any one security. When your stocks go down, you may still have the stability of
the bonds in your portfolio. There have been all sorts of academic studies and formulas that
demonstrate why diversification is important, but it's really just the simple practice of "not putting all
your eggs in one basket." If you spread your investments across various types of assets and markets,
you'll reduce the risk of your entire portfolio getting affected by the adverse returns of any single asset
class.
Debt Investment
‘Debt Instrument’
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Debt instrument represents a contract whereby one party lends money to another on pre-determined
terms with regards to rate and periodicity of interest, repayment of principal amount by the borrower
to the lender.
In Indian securities markets, the term ‘bond’ is used for debt instruments issued by the Central and
State governments and public sector organizations and the term ‘debenture’ is used for instruments
issued by private corporate sector.
Features of debt instruments
Each debt instrument has three features: Maturity, coupon and principal.
Maturity: Maturity of a bond refers to the date, on which the bond matures, which is the date on
which the borrower has agreed to repay the principal. Term-to-Maturity refers to the number of years
remaining for the bond to mature. The Term-to-Maturity changes everyday, from date of issue of the
bond until its maturity. The term to maturity of a bond can be calculated on any date, as the distance
between such a date and the date of maturity. It is also called the term or the tenure of the bond.
Coupon: Coupon refers to the periodic interest payments that are made by the borrower (who is also
the issuer of the bond) to the lender (the subscriber of the bond). Coupon rate is the rate at which
interest is paid, and is usually represented as a percentage of the par value of a bond.
Principal: Principal is the amount that has been borrowed, and is also called the par value or face
value of the bond. The coupon is the product of the principal and the coupon rate.
The name of the bond itself conveys the key features of a bond. For example, a GS CG2008 11.40%
bond refers to a Central Government bond maturing in the year 2008 and paying a coupon of 11.40%.
Since Central Government bonds have a face value of Rs.100 and normally pay coupon semi-annually,
this bond will pay Rs. 5.70 as six- monthly coupon, until maturity.
‘Interest’ payable by a debenture or a bond
Interest is the amount paid by the borrower (the company) to the lender (the debenture-holder) for
borrowing the amount for a specific period of time. The interest may be paid annual, semi-annually,
quarterly or monthly and is paid usually on the face value (the value printed on the bond certificate) of
the bond.
Segments in the Debt Market in India
There are three main segments in the debt markets in India, viz., (1) Government Securities, (2) Public
Sector Units (PSU) bonds, and (3) Corporate securities.
The market for Government Securities comprises the Centre, State and State-sponsored securities. In
the recent past, local bodies such as municipalities have also begun to tap the debt markets for funds.
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Some of the PSU bonds are tax free, while most bonds including government securities are not tax-
free. Corporate bond markets comprise of commercial paper and bonds. These bonds typically are
structured to suit the requirements of investors and the issuing corporate, and include a variety of
tailor- made features with respect to interest payments and redemption.
Participants in the Debt Market
Given the large size of the trades, Debt market is predominantly a wholesale market, with dominant
institutional investor participation. The investors in the debt markets are mainly banks, financial
institutions, mutual funds, provident funds, insurance companies and corporates.
Bonds rated for their credit quality
Most Bond/Debenture issues are rated by specialised credit rating agencies. Credit rating agencies in
India are CRISIL, CARE, ICRA and Fitch. The yield on a bond varies inversely with its credit (safety)
rating. The safer the instrument, the lower is the rate of interest offered.
Acquiring securities in the debt market
You may subscribe to issues made by the government/corporates in the primary market. Alternatively,
you may purchase the same from the secondary market through the stock exchanges.
MARKET DESIGN
Stock Exchanges
The stock exchanges are the exclusive centres for trading of securities. Listing of companies on a Stock
Exchange is mandatory to provide an opportunity to investors to invest in the securities of local
companies. The trading volumes on exchanges have been witnessing phenomenal growth for last few
years. Since the advent of screen based trading system in 1994-95, it has been growing by leaps and
bounds and reported a total turnover of Rs.51,30,816 crore during 2007-08. The growth of turnover
has, however, not been uniform across exchanges as may be seen from Table 3.1. The increase in
turnover took place mostly at big exchanges(NSE and BSE) and it was partly at the cost of small
exchanges that failed to keep pace with the changes. The business moved away from small exchanges
to big exchanges, which adopted technologically superior trading and settlement systems. The huge
liquidity and order depth of big exchanges further diverted liquidity of other stock exchanges. The 19
small exchanges put together reported less than 0.02% of total turnover during 2007-08, while 2 big
exchanges accounted for over 99.98 % of turnover. For most of the exchanges, the raison d’être for
their existence, i.e. turnover, has disappeared. NSE and BSE are the major exchanges having
nationwide operations. NSE operated through 2,956 VSATs in 245 cities at the end of March 2008. .
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Turnover on NSE vs. Turnover on other Exchanges
Exchange 2006-07 2007-08 2008-09 2009-10

NSE 19,45,287 35,51,038 27,52,023 4138023
BSE 9,56,185 15,78,857 11,00,074 1378809
Uttar Pradesh 799 475 89 25
Ahmedabad 0 0 0 0
Calcutta 694 446 393 0
Membership in NSE
There are no entry/exit barriers to the membership of NSE. Anybody can become a member by
complying with the prescribed eligibility criteria and exit by surrendering membership without any
hidden cost.
The members are admitted to different segments of the Exchange subject to the provisions of the
Securities Contracts (Regulation) Act, 1956, the SEBI Act, 1992, the rules, circulars, notifications,
guidelines, etc. issued hereunder and the byelaws, rules and regulations of the Exchange. The trading
members of NSE have certain benefits, which includes:
Access to a nation - wide trading facility for equities, derivatives, debt and hybrid instruments /
products;
Ability to provide a fair, efficient and transparent securities market to the investors;
Use of state-of-the-art electronic trading systems and technology;
Dealing with an organisation which follows strict standards for trading & settlement at par with those
available at the top international bourses and constantly strives to move towards a
global marketplace in the securities industry.
New Membership
a. The persons eligible to become trading members of Exchange are:

b. Individuals;
c. Partnership firms registered under the Indian Partnership Act, 1932.
d. Institutions, including subsidiaries of banks engaged in financial services;
e. Banks for Currency Derivatives Segment;
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f. Body corporates including companies as defined in the Companies Act, 1956. A company is
eligible to be admitted as a member if:
.
Membership for Different Segments at NSE
Persons or Institutions desirous of securing admission as members (stock brokers) on the Exchange
may apply for membership on any one of the following segment groups:
1. Wholesale Debt Market (WDM) Segment

2. Capital Market (CM) segment
3. Capital Market (CM) and Wholesale Debt Market (WDM) segment
4. Capital Market (CM) and Futures & Options (F&O) segment
5. Capital Market (CM), Futures & Options (F&O) segment and Wholesale Debt Market (WDM)
segment
6. Currency Derivatives (CD) segment with or without the above mentioned segments. Clearing
Membership of National Securities Clearing Corporation Ltd. (NSCCL) as a Professional Clearing
Member (PCM). Professional Clearing Members do not trade but only clear and settle trades
executed by other trading members (TMs). Professional clearing membership is only applicable for
the F&O and CD segments.
7. In addition to the trading membership in the F&O segment, the trading member can also take two
types of clearing membership in the F&O Segment i.e. as a clearing member and self clearing
member. The self clearing members clear and settle the trades executed by them only, either on
their account or on account of their clients. Trading members cum clearing members can clear and
settle their own trades as well as trades of other trading members.
Eligibility Criteria for Membership:
An applicant for membership must possess the minimum stipulated networth. The networth for the
purpose should be calculated as stipulated by the Exchange/SEBI. In case the company is a member of
any other Stock Exchange(s), it should satisfy the combined minimum networth requirements of all
these Stock Exchanges including NSEIL. The minimum paid up capital of a corporate applicant for
trading membership should be Rs. 30 lakh.
Eligibility Criteria for Membership:
Applicants are required to submit application form, in the prescribed format along with other relevant
documents to the Exchange.
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The application for new membership is then forwarded to Membership Recommendation Committee.
The Membership Recommendation Committee (MRC) consists of seven persons from various
disciplines. The MRC conducts interviews of the applicants for trading membership. In case of
corporates, the dominant shareholder and designated directors; in case of individuals, the individual
himself and in case of partnership firms – two designated partners have to appear for the interview.
The purpose of the interview is to acquire information about their capability & commitment to carry
on stock broking activities, financial standing and integrity.
The MRC recommends the names for admission of trading members to the Membership Approval
Committee (Sub-committee of board of directors)/Board of directors of the Exchange.
The Board of Directors after taking into consideration the recommendations of the MRC either
approves or rejects the applications.
On getting approval from the Board, an admission on a provisional basis is provided to the applicant
subject to certain conditions like registration with SEBI, submission of relevant fees/deposits and
documents. The documents of the member are then forwarded to SEBI for registration.
After satisfying itself as to compliance with respect to all the prescribed norms, SEBI grants a
Registration Certificate in the name of the applicant.
The applicant then has to remit the prescribed membership deposits (as required by the demand
advice attached to the provisional offer letter) within the time frame prescribed in the demand advice
attached to the provisional offer letter.
After obtaining SEBI Registration, payment of fees/deposits and submission of relevant documents, the
trading member has to satisfy all the formalities and requirements of Exchange and NSCCL for
enablement. The dealers on CM segment are required to clear the Capital Market (Dealers) Module of
NCFM; dealers on Futures & Options Segment are required to clear the Derivatives Market (Dealers)
Module or equivalent examination of NCFM and dealers on Currency Derivatives segment are required
to clear National Institute of Securities Market (NISM) Series I- Currency Derivatives Certificate
Examination. This is a pre-requisite without which user-ids are not issued.
After ensuring that all the formalities and requirements with regard to the Exchange and NSCCL are
complied, the Trading Member is enabled to trade on the NEAT system.
Listing of securities
Listing means admission of securities of an issuer to trading privileges on a stock exchange through a
formal agreement. The prime objective of admission to dealings on the Exchange is to provide liquidity
and marketability to securities, as also to provide a mechanism for effective management of trading.
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Listing Criteria
As per SEBI directive, an unlisted company may make an initial public offering (IPO) of equity shares or
any other security which may be converted into or exchanged with equity shares at a later date, only if
it meets all the following conditions:
 The company should have net tangible assets of at least Rs. 3 crore in each of the 3 full years
(of 12 months each), of which not more than 50% is held in monetary assets;
 The company should have a track record of distributable profits in terms of section 205 of the
Companies Act, 1956, for at least three (3) out of immediately preceding five (5) years;
 The company should have a net worth of at least Rs. 1 crore in each of the preceding 3 full
years (of 12 months each);
 In case the company has changed its name within the last one year, atleast 50% of the revenue
for the preceding 1 full year is earned by the company from the activity suggested by the new
name; and
 The aggregate of the proposed issue and all previous issues made in the same financial year in
terms of size (i.e. offer through offer document + firm allotment + promoters’ contribution
through the offer document), does not exceed five (5) times its pre-issue networth as per the
audited balance sheet of the last financial year
Delisting of Securities
SEBI (Delisting of Securities) Guidelines 2003 are applicable to delisting of securities of companies and
specifically apply to:
1. Voluntary delisting being sought by the promoters of a company

2. Any acquisition of shares of the company (either by a promoter or by any other person) or
scheme or arrangement, by whatever name referred to, consequent to which the public
shareholding falls below the minimum limit specified in the listing conditions or listing
agreement that may result in delisting of securities
3. Promoters of the companies who voluntarily seek to de-list their securities from all or some of
the stock exchanges
4. Cases where a person in control of the management is seeking to consolidate his holdings in a
company, in a manner which would result in the public shareholding in the company falling
below the limit specified in the listing conditions or in the listing agreement that may have the
effect of company being de-listed
5. Companies which may be compulsorily de-listed by the stock exchanges: provided that
company shall not be permitted to use the buy-back provision to delist its securities
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Voluntary Delisting
 Any promoter or acquirer desirous of delisting securities of the company under the provisions
of these guidelines should obtain the prior approval of shareholders of the company by a
special resolution passed at its general meeting, make a public announcement in the manner
provided in these guidelines, make an application to the delisting exchange in the form
specified by the exchange, and comply with such other additional conditions as may be
specified by the concerned stock exchanges from where securities are to be de-listed.
 Any promoter of a company which desires to de-list from the stock exchange should determine
an exit price for delisting of securities in accordance with the book building process as stated in
the guidelines.
 The stock exchanges shall provide the infrastructure facility for display of the price at the
terminal of the trading members to enable the investors to access the price on the screen to
bring transparency to the delisting process. The stock exchange shall also monitor the
possibility of price manipulation and keep under special watch the securities for which
announcement for delisting has been made.
Compulsory De-listing of Companies
 The stock exchanges may de-list companies which have been suspended for a minimum
period of six months for non-compliance with the listing agreement.
 The stock exchanges have to give adequate and wide public notice through newspapers and
also give a show cause notice to a company. The exchange shall provide a time period of 15
days within which representation may be made to the exchange by any person who may be
aggrieved by the proposed delisting.
 Where the securities of the company are de-listed by an exchange, the promoter of the
company should be liable to compensate the security holders of the company by paying them
the fair value of the securities held by them and acquiring their securities, subject to their
option to remain security-holders with the company
Benefits of Listing on NSE
Listing on NSE provides qualifying companies with the broadest access to investors, the greatest
market depth and liquidity, cost-effective access to capital, the highest visibility, the fairest pricing, and
investor benefits.
1. A premier marketplace: The sheer volume of trading activity ensures that the cost is lower on
the Exchange which in turn reduces the cost of trading to the investor. NSE’s automated trading
system ensures consistency and transparency in the trade matching which enhances investors
confidence and visibility of our market.
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2. Visibility: The trading system provides unparallel level of trade and post-trade information.
The best 5 buy and sell orders are displayed on the trading system and the total number of
securities available for buying and selling is also displayed. This helps the investor to know the
depth of the market. Further, corporate announcements, results, corporate actions etc are also
available on the trading system.
3. Largest exchange: NSE is the largest exchange in the county in terms of trading volumes. NSE’s
reported turnover in the equities segment accounts for over 74 % of the total Indian securities
market.
4. Unprecedented reach: NSE provides a trading platform that extends across the length and
breadth of the country. The Exchange uses the latest communication technology to give instant
access to investors from many locations.
5. Modern infrastructure: NSE introduced for the first time in India, fully automated screen based
trading. The Exchange uses a sophisticated telecommunication network with trading terminals
connected through VSATs (Very Small Aperture Terminals) and leased lines.
6. Transaction speed: The speed at which the Exchange processes orders, results in liquidity and
best available prices. The Exchange’s trading system on an average processes large numbers of
orders per minute.
7. Short settlement cycles: The exchanges follows a T+2 settlement cycle which is of international
standards.
8. Broadcast facility for corporate announcements: The NSE network is used to disseminate
information and company announcements across the country. Important information regarding
the company is announced to the market through the Broadcast Mode on the NEAT system as
well as disseminated through the NSE’s website. Corporate developments such as financial
results, book closure, announcements of bonus, rights, takeover, mergers etc. are disseminated
across the country thus minimizing scope for price manipulation or misuse.
9. Trade statistics for listed companies: Listed companies are provided with monthly trade
statistics for all the securities of the company listed on the Exchange.
10. Investor service centers: Investor-service centers opened by NSE across theq country cater to
the needs of investors.
Dematerialisation
Traditionally, settlement system on Indian stock exchanges gave rise to settlement risk due to the time
that elapsed before trades were settled. Trades were settled by physical movement of certificates. This
had two aspects: First related to settlement of trade in stock exchanges by delivery of shares by the
seller and payment by the buyer. The stock exchange aggregated trades over a period of time and
carried out net settlement through the physical delivery of securities. The process of physically moving
the securities from the seller to his broker to Clearing Corporation to the buyer’s broker and finally to
16
the buyer took time with the risk of delay somewhere along the chain. The second aspect related to
transfer of shares in favour of the purchaser by the issuer. This system of transfer of ownership was
grossly inefficient as every transfer involved the physical movement of paper securities to the issuer
for registration, with the change of ownership being evidenced by an endorsement on the security
certificate. In many cases the process of transfer took much longer than the two months as stipulated
in the Companies Act, and a significant proportion of transactions ended up as bad delivery due to
faulty compliance of paper work. Theft, forgery, mutilation of certificates and other irregularities were
rampant, and in addition the issuer had the right to refuse the transfer of a security. Thus, the buyer
did not get good title of the securities after parting with good money. All this added to costs and delays
in settlement, restricted liquidity and made investor grievance redressal time-consuming and at times
intractable.
To obviate these problems, the Depositories Act, 1996 was passed to provide for the establishment of
depositories in securities with the objective of ensuring free transferability of securities with speed,
accuracy and security by
1. making securities of public limited companies freely transferable subject to certain exceptions;
2. dematerialising the securities in the depository mode; and
3. Providing for maintenance of ownership records in a book entry form.
In order to streamline both the stages of settlement process, the Depositories Act envisages transfer of
ownership of securities electronically by book entry without making the securities move from person
to person. The Act has made the securities of all public limited companies freely transferable by
restricting the company’s right to use discretion in effecting the transfer of securities, and dispensing
with the transfer deed and other procedural requirements under the Companies Act.
A depository holds securities in dematerialised form. It maintains ownership records of securities and
effects transfer of ownership through book entry. By fiction of law, it is the registered owner of the
securities held with it with the limited purpose of effecting transfer of ownership at the behest of the
owner. The name of the depository appears in the records of the issuer as registered owner of
securities. The name of actual owner appears in the records of the depository as beneficial owner. The
beneficial owner has all the rights and liabilities associated with the securities. The owner of securities
intending to avail of depository services opens an account with a depository through a depository
participant (DP). The securities are transferred from one account to another through book entry only
on the instructions of the beneficial owner.
In order to promote dematerialisation of securities, NSE joined hands with leading financial institutions
to establish the 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 menace of
fake/forged and stolen securities. This has ushered in an era of dematerialised trading and settlement.
SEBI has made dematerialised settlement mandatory in an ever-increasing number of securities in a
17
phased manner, thus bringing about an increase in the proportion of shares delivered in
dematerialised form. This was initially introduced for institutional investors and was later extended to
all investors. Starting with twelve scrips on January 15, 1998, all investors were required to
mandatorily trade in dematerialised form in respect of 2,335 securities as at end-June 2001. By
November 2001, 3811 companies were under demat mode and the rest of the companies were
brought under compulsory demat mode by January 02, 2002. At the end of September 2010 2008,
8,514 and 7,392 companies were connected to NSDL and CDSL respectively. The number of
dematerialised securities together at NSDL & CDSL increased from 39 billion at the end of March 2001
to 495 billion at the end of September 2010.
Pursuant to the SEBI directive on providing facility for small investors holding physical shares in the
securities mandated for compulsory demat, the Exchange has provided such facility for trading in
physical shares not exceeding 500 shares in the Limited Physical (LP) market segment.
Primarily all trades are now settled in dematerialized form. The share of demat delivery in total
delivery at NSE increased to almost 100% in value terms.
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TRADING
Trading Mechanism
The 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. This was time consuming and
inefficient. This imposed limits on trading volumes and efficiency. In order to provide efficiency,
liquidity and transparency, NSE introduced a nation-wide on-line fully automated screen based trading
system (SBTS) where a member can punch into the computer quantities of securities and the prices at
which he likes to transact and the transaction is executed as soon as it finds a matching sale or buy
order from a counter party.
NSE has main computer which is connected through Very Small Aperture Terminal (VSAT) installed at
its office. The main computer runs on a fault tolerant STRATUS mainframe computer at the Exchange.
Brokers have terminals (identified as the PCs in the Figure) installed at their premises which are
connected through VSATs/leased lines/modems. An investor informs a broker to place an order on his
behalf. The broker enters the order through his PC, which runs under Windows NT and sends signal to
the Satellite via VSAT/leased line/modem. The signal is directed to mainframe computer at NSE via
VSAT at NSE’s office. A message relating to the order activity is broadcast to the respective member.
The order confirmation message is immediately displayed on the PC of the broker. This order matches
with the existing passive order(s) otherwise it waits for the active orders to enter the system. On order
matching, a message is broadcast to the respective member.
The trading system operates on a strict price time priority. All orders received on the system are sorted
with the best priced order getting the first priority for matching i.e., the best buy orders match with
the best sell order. Similar priced orders are sorted on time priority basis, i.e. the one that came in
19
early gets priority over the later one. Orders are matched automatically by the computer keeping the
system transparent, objective and fair. Where an order does not find a match, it remains in the system
and is displayed to the whole market, till a fresh order comes in or the earlier order is cancelled or
modified. The trading system provides tremendous flexibility to the users in terms of kinds of orders
that can be placed on the system.
Basket Trading
The purpose of Basket Trading is to provide NEAT users with a facility to create offline order entry file
for a selected portfolio. On inputting the value, the orders are created for the selected portfolio of
securities according to the ratios of their market capitalisations. All the orders generated through the
offline order file are priced at the available market price.
Quantity of shares of a particular security in portfolio are calculated as under:
No. of Shares of a security in portfolio =

Where:
Current Portfolio Capitalisation = Summation [Last Traded Price (Previous close if not traded) * No. of
Issued shares]
In case at the time of generating the basket if any of the constituents are not traded, the weightage of
the security in the basket is determined using the previous close price. This price may become
irrelevant if there has been a corporate action in the security for the day and the same has not yet
been traded before generation of the file. Similarly, basket facility will not be available for a new listed
security till the time it is traded.
Reverse Basket on Traded Quantity
The Reverse Basket Trading provides the users with an offline file for reversing the trades that have
taken place for a basket order. This file will contain orders for different securities of the selected
basket file. The Orders are created according to the volume of trade that has taken place for that
basket. This helps to monitor the current status of the basket file as the latest status of the orders are
displayed in the list box. It is advisable to create each basket with a different name and clean up the
directories regularly and not tamper with the original basket file once it has been loaded as it may give
erroneous results.
Index Trading
The purpose of Index Trading is to provide users with a facility of buying and selling of Indexes, in
terms of securities that comprises the Index. The users have to specify the amount, and other inputs
20
that are sent to the host, and the host generates the orders. The Index Trading enables the users for
buying or selling an Index Basket. Putting orders in securities in proportion that comprises the chosen
index, simulates the buying and selling of Index basket.
ORDER MANAGEMENT
Order Management consists of entering orders, order modification, order cancellation and order
matching.
Entering Orders
The trading member can enter orders in the normal market and auction market. A user can place
orders in any of the above mentioned markets by invoking the respective order entry screens.
Active & Passive Orders: When any order enters the trading system, it is an active order. It tries to find
a match on the other side of the books. If it finds a match, a trade is generated. If it does not find a
match, the order becomes a passive order and goes and sits in the order book.
Order Books: As and when valid orders are entered or received by the trading system, they are first
numbered, time stamped and then scanned for a potential match. This means that each order has a
distinctive order number and a unique time stamp on it. If a match is not found, then the orders are
stored in the books as per the price/time priority. Price priority means that if two orders are entered
into the system, the order having the best price gets the higher priority. Time priority means if two
orders having the same price is entered, the order that is entered first gets the higher priority. Best
price for a sell order is the lowest price and for a buy order, it is the highest price.
The different order books in the NEAT system are as detailed below:
 Pre-open Book: - An order during Preopen session has to be a Preopen (PO) order. All the
Preopen orders are stacked in system till the Preopen phase. At the end of Preopen phase, the
matching of Preopen orders takes place at the Final Opening Price. By default, the Preopen (PO)
book appears in the order entry screen when the Normal Market is in Preopen and the security
is eligible for Preopen Session. Order entry in preopen book type is allowed only during market
status is in preopen.
 Regular Lot Book: An order that has no special condition associated with it is a Regular Lot
order. When a dealer places this order, the system looks for a corresponding Regular Lot order
existing in that market (Passive orders). If it does not find a match at the time it enters the
system, the order is stacked in the Regular Lot book as a passive order. By default, the Regular
Lot book appears in the order entry screen in the normal market. Buyback orders can be placed
through the Regular Lot (RL) book in the Normal Market. The member can place a buyback
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order by specifying ‘BUYBACKORD’ in the Client Account field in the order entry screen. Such
company buyback orders will be identified in MBP screen by an ‘*’ (asterisk) indicator against
such orders.
 Special Terms Book: Orders which have a special term attribute attached to it are known as
special terms orders. When a special term order enters the system, it scans the orders existing
in the Regular Lot book as well as Special Terms Book. Currently this facility is not available in
the trading system.
 Stop Loss Book: Stop Loss (SL) orders are released into the market when the last traded price
for that security in the normal market reaches or surpasses the trigger price. Before triggering,
the order does not participate in matching and the order cannot get traded. Untriggered stop
loss orders are stacked in the stop loss book. The stop loss orders can be either a market order
or a limit price order. For buy SL orders, the trigger price has to be less than or equal to the
limit price. Similarly, for sell SL orders, the trigger price has to be greater than or equal to the
limit price.
 Odd Lot Book: The Odd Lot book can be selected in the order entry screen in order to trade in
the Odd Lot market. Order matching in this market takes place between two orders on the
basis of quantity and price. To enter orders in the odd lot market, select the book type as OL.
 RETDEBT Order Book: RETDEBT market orders can be entered into the system by selecting the
RETDEBT Order book. These orders scan only the RETDEBT Order book for potential matches. If
no suitable match can be found, the order is stored in the book as a passive order. To enter
orders in the RETDEBT market, select the book type as ‘D’.
 Auction Order Book: Auction order book stores orders entered by the trading members to
participate in the Exchange initiated auctions. Auction orders can be initiator orders,
competitor orders and solicitor orders.
TRADING RULES
Insider Trading
Insider trading is prohibited and is considered an offence. The SEBI (Prohibition of Insider Trading)
Regulations, 1992 prohibit an insider from dealing (on his own behalf or on behalf of others) in listed
securities when in possession of ‘unpublished price sensitive information’ or communicate, counsel or
procure directly or indirectly any unpublished price sensitive information to any person who while in
possession of such unpublished price sensitive information should not deal in securities. Price sensitive
information is any information, which if published, is likely to materially affect the price of the
securities of a company. Such information may relate to the financial results of the company, intended
declaration of dividends, issue of securities or buy back of securities, amalgamation, mergers,
22
takeovers, any major policy changes, etc. In order to strengthen insider trading regulations, SEBI
mandated a code of conduct for listed companies, its employees, analysts, market intermediaries and
professional firms. The insider trading regulations were amended to include requirements for initial
and continual disclosure of shareholding by directors or officers, who are insiders, and substantial
shareholders (holding more than 5% shares/voting rights) of listed companies. The listed companies
are also mandated to adopt a code of disclosure with regard to price sensitive information, market
rumours, and reporting of shareholding/ownership, etc.
Unfair Trade Practices
The SEBI (Prohibition of Fraudulent and Unfair Trade Practices in relation to the Securities Market)
Regulations, 2003 enable SEBI to investigate into cases of market manipulation and fraudulent and
unfair trade practices. These regulations empower SEBI to investigate into violations committed by any
person, including an investor, issuer or an intermediary associated with the securities market. The
regulations define frauds as acts, expression, omission or concealment committed whether in a
deceitful manner or not by a person or by any other person or agent while dealing in securities in order
to induce another person with his connivance or his agent to deal in securities, whether or not there is
any wrongful gain or avoidance of any loss. The regulations specifically prohibit dealing in securities in
a fraudulent manner, market manipulation, misleading statements to induce sale or purchase of
securities, and unfair trade practices relating to securities. SEBI can conduct investigation, suo moto or
upon information received by it, through an investigation officer in respect of conduct and affairs of
any person buying/selling/dealing in securities. Based on the report of the investigating officer, SEBI
can initiate action for suspension or cancellation of registration of an intermediary.
Buy back
Buy back aims at improving liquidity in the shares of companies and helps corporates in enhancing the
shareholders’ wealth. Under the SEBI (Buy Back of Securities) Regulations, 1998, a company is
permitted to buy back its shares from:
1. the existing security holders on a on a proportionate basis through the tender offer,
2. the open market through stock exchanges, and book building process; and
3. shareholders holding odd lot shares.
4. The regulations provide for extensive disclosures in the explanatory statement to be annexed to
the notice for the general meeting and the letter of offer. The company has to disclose the pre and
post-buy back holdings of the promoters. With a view to ensure completion of the buy back
process speedily, the regulations provide for time bound steps in every mode.
For example, as per the offer procedure prescribed under Regulation 10 an offer for buy back shall not
remain open for more than 30 days and the verification of shares received in buy back has to be
completed within 15 days of the closure of the offer. The payments for accepted securities has to be
23
made within 7 days of the completion of verification and bought back shares have to be extinguished
and physically destroyed within 7 days of the date of the payment.
To ensure security for performance of its obligation, the company making an offer for buy back will
have to open an escrow account.
Price Bands
Stock market volatility is generally a cause of concern for both policy makers as well as investors. To
curb excessive volatility, SEBI has prescribed a system of price bands. The price bands or circuit
breakers bring about a coordinated trading halt in all equity and equity derivatives markets nation-
wide. An index-based market-wide circuit breaker system at three stages of the index movement
either way at 10%, 15% and 20% has been prescribed. The breakers are triggered by movement of
either S&P CNX Nifty or Sensex, whichever is breached earlier (please see chapter 5 for details). As an
additional measure of safety, individual scripwise price bands have been fixed as below:
1. Daily price bands of 2% (either way) on securities as specified by the Exchange.

4. No price bands are applicable on: scrips on which derivative products are available or scrips
included in indices on which derivative products are available. In order to prevent members from
entering orders at non-genuine prices in such securities, the Exchange has fixed operating range of
20% for such securities.
PRIMARY MARKET
‘Primary Market’
The primary market provides the channel for sale of new securities. Primary market provides
opportunity to issuers of securities; Government as well as corporates, to raise resources to meet their
requirements of investment and/or discharge some obligation.
They may issue the securities at face value, or at a discount/premium and these securities may take a
variety of forms such as equity, debt etc. They may issue the securities in domestic market and/or
international market.
Face Value of a share/debenture
The nominal or stated amount (in Rs.) assigned to a security by the issuer. For shares, it is the original
cost of the stock shown on the certificate; for bonds, it is the amount paid to the holder at maturity.
Also known as par value or simply par. For an equity share, the face value is usually a very small
amount (Rs. 5, Rs. 10) and does not have much bearing on the price of the share, which may quote
higher in the market, at Rs. 100 or Rs. 1000 or any other price. For a debt security, face value is the
24
amount repaid to the investor when the bond matures (usually, Government securities and corporate
bonds have a face value of Rs. 100). The price at which the security trades depends on the fluctuations
in the interest rates in the economy.
Different kinds of issues
Primarily, issues can be classified as a Public, Rights or Preferential issues (also known as private
placements). While public and rights issues involve a detailed procedure, private placements or
preferential issues are relatively simpler. The classification of issues is illustrated below:
Initial Public Offering (IPO) is when an unlisted company makes either a fresh issue of securities or an
offer for sale of its existing securities or both for the first time to the public. This paves way for listing
and trading of the issuer’s securities.
A follow on public offering (Further Issue) is when an already listed company makes either a fresh
issue of securities to the public or an offer for sale to the public, through an offer document.
Rights Issue is when a listed company which proposes to issue fresh securities to its existing
shareholders as on a record date. The rights are normally offered in a particular ratio to the number of
securities held prior to the issue. This route is best suited for companies who would like to raise capital
without diluting stake of its existing shareholders.
A Preferential issue is an issue of shares or of convertible securities by listed companies to a select

group of persons under Section 81 of the Companies Act, 1956 which is neither a rights issue nor a
public issue. This is a faster way for a company to raise equity capital. The issuer company has to
comply with the Companies Act and the requirements contained in
25
Research Methodology
The methodology involves in selecting three different NIFTY stock

indices[largecap50,midcap50,smallcap50]. The data collected for the project can basically done from
two sources but this project is completely dependent upon the secondary data.
Secondary sources: Collection of data from Internet and books
For this Project, we have used Secondary sources.
Objectives: -
 To understand the National Stock Exchange.

 To study the format and procedures of the secondary markets.
 To analyse the fluctuations of NIFTY Indices [Largecap50,Midcap,Smallcap50].
 To determine the risk involved in investing into largecap50, midcap50 and smallcap50.
 To know the impact of economic indicators [GDP & Inflation] on stock indices.
 To exhibit the best avenue for investor to invest depending on his perception.
Limitations: -
 The study is completely dependent upon secondary data.

 The data is collected only within the allotted time constrain.
 The study is concentrated only on three indices [largecap50,midcap50&smallcap50].
 The NIFTY indices of every month ending were only considered.
 The inflation and GDP are considered in an yearly basis.
 The project includes only the yearly CPI as inflation rate.
 The yearly nominal growth rate of GDP is considered.1
 Only six months data of 2017 is collected.
Scope: -
The extent of study of this project can explain about largecap50, midcap50, smallcap50 and their
comparative volatility, resistance and reactions to the fluctuations in economic conditions. In other
words, the scope of my project explains the fluctuations in nifty indices along with the changes in
internal and external factors
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Tools Used
Ratio, which is a ratio of returns generated by the fund over and above risk free rate of return and
the total risk associated with it. The following tools has been used in this project for finding or
measuring the risk and return of different equity mutual funds
 Standard deviation
Standard deviation is a measure of the dispersion of a set of data from its mean. It is calculated as the
square root of variance by determining the variation between each data point relative to the mean. If
the data points are further from the mean, there is higher deviation within the data set.
 Variance
Variance is a measurement of the spread between numbers in a data set. The variance measures how
far each number in the set is from the mean. Variance is calculated by taking the differences between
each number in the set and the mean, squaring the differences (to make them positive) and dividing
the sum of the squares by the number of values in the set.
 Sharpe Ratio
In this model, performance of a fund is evaluated on the basis of Sharpe

According to Sharpe, it is the total risk of the fund that the investors are concerned about. So, the
model evaluates funds on the basis of reward per unit of total risk. Symbolically, it can be written as
Sharpe Index = (Rm - Rf)/SD
Where: SD-represents standard deviation of the fund.
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INDUSTRIAL ANALYSIS
History of Indian Stock Market
Indian Stock Market is one of the oldest Stock Market in Asia. East India Company used to transact
Loan Securities by the end of 18th Century. In the 1830s, trading on corporate stocks and shares in Bank
and Cotton presses took place in Bombay.
Establishment of BSE (Bombay Stock Exchange)
Few informal groups of Stock Brokers organized themselves in 1875 and

were formally organized as Bombay Stock Exchange (BSE). In 1956, the
Government of India recognized the Bombay Stock Exchange as the first
Stock Exchange in the country under the Securities Contracts
(Regulation) Act.
But still there was no means to measure the overall performance of the
exchange. So, in 1986, Bombay Stock Exchange developed BSE Sensex (Sensex = Sensitive Index), an
index of top 30 companies, which gave a means to measure the overall performance of the Exchange.
Establishment of SEBI (Securities and Exchange Board of India)
Until late 1980s, BSE ran with low transparency and an unreliable
clearing and settlement systems. Towards the end of the 1980s, new
economic forces, the economic growth and currency crisis emphasized
the need for modernization of the financial system. Government created
the Securities and Exchange Board of India (SEBI) in 1988.
Establishment of NSE (National Stock Exchange)
In April 1992, Bombay Stock Exchange crashed due to Harshad Mehta

Scam. Finance minister Mr. Manmohan Singh urged the need of other
Stock Exchange in competition to BSE. He tapped the Industrial
Development Bank (IDB) to take the lead of the project of creating
competition for BSE.
28
In November 1992, NSE (National Stock Exchange) was established as the first electronically traded
Stock Exchange in India. After a few years of operations, the NSE has become the largest stock
exchange in India.
BSE also automated the systems in 1995 but it never caught up with NSE Spot Market turnover.
Three segments of the NSE trading platform were established one after another. The Wholesale Debt
Market (WDM) commenced operations in June 1994 and the Capital Market (CM) segment was
opened at the end of 1994. Finally, the Futures and Options segment began operating in 2000. Today
the NSE takes the 14th position in the top 40 futures exchanges in the world.
In 1996, the National Stock Exchange of India launched S&P CNX Nifty. CNX Nifty (Nifty = National
Fifty) is a diversified index of 50 stocks from 25 different economy sectors.
In 1998, the National Stock Exchange of India launched its web-site and was the first exchange in India
that started trading stock on the Internet in 2000. Today, NSE has roughly 66% of equity spot turnover
and roughly 100% of equity derivatives turnover.
List of Share Brokers in India
There are 100's of stocks broker in India member of BSE and NSE. Most of them offers retail broking.
Every year we do detail review analysis of Top Share Brokers in India. Some of the stock brokers we
reviewed are listed below. Click on the broker's name to get more detail about them.
Top Share Brokers in India
1. ProStocks 10. Religare
2. ICICI Securities Pvt Ltd. 11. Geojit BNP Paribas
3. Sharekhan 12. Networth Stock Broking Ltd
4. Indiabulls Ventures Limited 13. Kotak Securities Ltd
5. India Infoline Limited 14. Bonanza Portfolio Ltd
6. Motilal Oswal Securities Ltd 15. Angel Broking
7. HDFC Securities Ltd 16. HSBC Invest Direct Ltd
8. Reliance Securities Limited 17. Aditya Birla Money Ltd
9. IDBI Capital 18. Just Trade Securities Limited
29
19. Zerodha 44. Ajmera Associates Limited
20. SBICAP Securities Ltd 45. Alankit Assignments Limited
21. Ventura Securities Ltd 46. Allwin Securities Limited
22. R K Global Shares & Securities Ltd 47. Ambit Capital Private Limited
23. Composite Investments Pvt Ltd 48. Ambit Securities Broking Private Limited
24. RKSV Securities Ltd 49. Amrapali Capital & Finance Services Limited
25. Trade Smart Online 50. Anugrah Stock & Broking Private Limited
26. SAS Online 51. Arcadia Share & Stock Brokers Private
Limited
27. MyValueTrade
52. Arihant Capital Markets Limited
28. SMC Global Limited
53. Ase Capital Markets Limited
29. Tradejini Financial Services Pvt Ltd
54. Ashika Stock Broking Limited
30. Wisdom Capital
55. Ashlar Securities Private Limited
31. Achiievers Equities Ltd
56. Asit C.Mehta Investment Interrmediates
32. Anand Rathi
Limited
33. Upstox
57. Badjate Stocks
34. Edelweiss Broking Ltd
58. Bansal Finstock Private Limited
35. Axis Securities
59. BCB Brokerage Private Limited
36. Karvy Stock Broking Ltd
60. BgSE Financials Limited
37. Nirmal Bang Securities Pvt Ltd
61. Bhumika Consultancy Private Limited
38. 4A Securities Limited
62. BP Equities Private Limited
39. A. C. Choksi Share Brokers Private Limited
63. Choice Equity Broking Private Limited
40. A. N. Securities
64. CLSA India Private Limited
41. Across Broking Private Limited
65. CNB Finwiz Private Limited
42. Adroit Financial Services Private Limited
66. CPR Capital Services Limited
43. AFN Langrana Share & Stock Brokers Private
67. Crosseas Capital Services Private Limited
Limited
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68. Dalal & Broacha Stock Broking Private 85. Indira Securities Private Limited
Limited
86. Indus Portfolio Private Limited
69. Dani Shares & Stocks Private Limited
87. Integrated Master Securities Private Limited
70. DB (International) Stock Brokers Limited
88. Inventure Growth & Securities Limited
71. Destimoney Securities Private Limited
89. ISE Securities & Services Limited
72. Durga Prasad & Co
90. J. G. Shah Financial Consultants Private
73. Emkay Global Financial Services Limited Limited
74. Estee Advisors Private Limited 91. J. L. Shah Securities Private Limited
75. Eureka Stock & Share Broking Services 92. Jainam Share Consultants Private Limited
Limited
93. JM Financial Services Limited
76. Focus Shares & Securities Private Limited
94. Joindre Capital Services Limited
77. Gandhi Securities & Investment Private
95. K.M. Global Financial Services Pvt Ltd
Limited
96. Kamal Kumar Jalan Securities Private
78. Genuine Stock Brokers Private Limited
Limited
79. Globe Capital Market Limited
97. Kantilal Chhaganlal Securities Private
80. Gogia Capital Services Limited Limited
81. Goldmine Stocks Private Limited 98. Kaynet Capital Limited
82. Harjivandas Nemidas Securities Private 99. KIFS Securities Private Limited
Limited
100. Kisan Ratilal Choksey Shares & Securities
83. Hem Securities Limited PvtLtd
84. India Advantage Securities Private Limited
Top 10 stock brokerages in India
1.Sharekhan Limited
ShareKhan is an online trading company of SSKI group. It has presence in over 550 cities of the country
and India’s most trusted brokerage firms.
Head Office: Mumbai, India
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Number of Terminals: 2000 to 2500
Number of Sub Brokers: 200 to 300
Number of Branches: 510 offices
Number of Employees: 1000 to 2000
Account Opening Fee: Rs 750/- for Classic Account and Rs 1000/- for Trade Tiger
Website: www.sharekhan.com
Incorporated in February 2000, Sharekhan is India's 3rd largest stock broker. Sharekhan provides
brokerage services through its online trading website Sharekhan.com and 1800 offices which includes
branches & franchises in over 550 cities across India. Sharekhan has seen incredible growth over last
10+ years though it's very successful online trading platform and the chain of franchises located in
almost every part of India. Sharekhan also has international presence in the UAE and Oman.
Sharekhan offers its services to all kinds of customers including individual investors and traders,
corporate, institutional and NRI's. As of Dec 2014, Sharekhan has over 13 lakh customers. Sharekhan
offers trade execution facilities for equity cash and derivatives segments on BSE and NSE, commodities
trading facilities on MCX and NCDEX. Sharekhan also offer depository services (demat account) and
option to invest in mutual funds and IPOs.
Sharekhan.com is the finest investment portal for India stock market. The well designed website
provides wide range on investment options, share market news, research reports, stock quotes,
fundamental and statistical info across equity, mutual funds, IPOs and much more.
Sharekhan also offers 'Sharekhan TradeTiger', one of the most popular trading terminals, for retail
investors. The Trade Tiger is quite similar to Broker Terminal and allows frequent traders to place and
execute their orders at a high speed. It also provides live data and other tools on the same screen to
help the users with their trades.
Services offered by Sharekhan include trading in equity, F&O and Commodity and investment in IPO's,
Mutual Funds, Insurance, Bonds and NCD's. Company also provide Sharekhan Demat Account and
registered as a depository participant with NSD and CDS.
2. India Bulls
India bulls was founded by Sameer Gehlaut in the year 2000. India bull has a net worth of Rs 17,000
crore.
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Head Office: Gurgaon, Haryana
Number of Branches: 414 to 450
Account Opening Fee: Rs 1200/- (Rs 250/- for equity + Rs 200/- for Demat + Rs 750/- for software )
Website: www.indiabulls.com
In middle of 1999, when e-commerce was just about starting in India, Sameer Gehlaut bought a
defunct securities company with a NSE membership and started offering brokerage services.
By December 1999, the company embarked on its journey to build one of
the first online platforms in India for offering internet brokerage services. In January 2000, Indiabulls
Financial Services was incorporated as the flagship company.
In late 2000, Indiabulls Securities, a subsidiary of Indiabulls Financial

Services started offering online brokerage services and simultaneously opened physical offices across
India. By 2003, Indiabulls securities had established a strong pan India presence and client base
through its offices and on the internet.
In September 2004, Indiabulls Financial Services went public with an IPO at Rs.19 a share. In late 2004,
Indiabulls Financial Services started it's financing business with consumer loans. In March 2005,
Indiabulls Properties Private Ltd, a subsidiary of Indiabulls Financial Services, participated in
government auction of Jupiter Mills, a defunct 11 acre textile mill owned by NTC in Lower Parel,
Mumbai. Indiabulls Properties Private Ltd. won the mill in auction and that purchase started Indiabulls
Real Estate business. A few months later, Indiabulls Real Estate Company Pvt. Ltd. bought Elphinstone
Mill in Lower Parel, another textile mill auctioned by NTC.
Imagination
With real estate business gaining size, Indiabulls Financial Services demerged the real estate business
under
3. Angel Broking Limited
Angel is counted among top 3 broking firms in India. It was founded in the year 1987 and it offers
various services like ebroking, commodity trading and other wealth management services.
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Account Opening Fee: Stock Trading Account + Demat Account = Rs 500/-, Commodity Trading = Rs
625/-
Website: www.angelbroking.com
Angel Broking is an Indian Stock Broking firm established in 1987. The company is a member of the
Bombay Stock Exchange (BSE), National Stock Exchange (NSE), National Commodity & Derivatives
Exchange Limited (NCDEX) and Multi Commodity Exchange of India Limited (MCX). It is a depository
participant with Central Depository Services Limited (CDSL). The company has 8500+ sub-brokers and
franchisee outlets in more than 900 cities across India.
Angel Broking offers products such as Angel Eye, Angel SpeedPro, Angel Trade and Angel Swift for
online trading. Angel Eye is a browser trading application; SpeedPro is a trading platform application;
Angel Trade offers an online trading platform for share investors, while Swift consists of a trading app
for small devices.
History
Entrepreneur Dinesh Thakkar started his business in 1987 with a capital of Five Lakhs Indian Rupees
and lost half of the money within eight months. In 1989, he started off again as a sub-broker. Later,
Angel Broking was incorporated as a wealth management, retail and corporate broking firm in
December, 1997. In November 1998, Angel Capital and Debt Market Ltd. gained membership of
National Stock Exchange as a legal entity. The company opened its commodity broking Division in April,
2004. In November 2007, Birla Sun Life Insurance joined hands with Angel Broking for distribution of its
insurance products. Clarification needed In 2007 the World Bank arm International Finance
Corporation bought 18% stake in Angel Broking.
4. Reliance Money
Reliance money is India’s number one broking firm. It has over 3.5 million customers with more than
6000 outlets around the country.
Head Office: Lower Parel, Mumbai

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Account Opening Fee: Trading + Demat = Rs 750/- and for foreign nationals it is Rs 1000/-
Website: www.reliancemoney.com
Reliance Securities Stock Trading, Demat, Brokerage.
Reliance Securities, A Reliance Capital Limited Company, is the financial services division of Reliance
Anil Dhirubhai Ambani (ADA) Group. Reliance ADA group is among top 3 business houses in India with
wide range of presence across various sectors. Group's major interests ranges from communications
(Reliance Communications) and financial services (Reliance Capital Ltd), to generation, transmission
and distribution of power (Reliance Energy), infrastructure and entertainment.
Rsec.co.in is the web based investment portal (with Online Stock Trading) from Reliance Securities. This
website enables its customer to invest & manage most of the services provided by Reliance Securities
including Equity (Stock) Trading, Commodity Trading,
Derivatives, Mutual Fund Investment, IPO Investment, Life Insurances, General insurances, Money
Transfer, Currency Derivatives, Gold Coins and Credit Cards Services. Company recently entered in to
Wealth Management with tools like investment in equity-linked portfolio management services,
structured products, insurance and mutual funds.
Trade In: NSE, BSE & MCX-SX, MCX, NCDEX, NMCE
Reliance Securities Research Desk
e Securities Research Desk provides independent Equity Research to Retail Clients. It has a strong and
highly experienced team of Analysts enjoying a rich blend of youth and experience. In terms of sector
coverage we cover sectors like Automotive, Auto Components, Capital Goods, Engineering, Cement,
Infrastructure, Banking, Software, Pharma, Telecom, FMCG, Media and Oil. The Fundamental Research
is broadly idea based and gives a mix of large-cap and mid-cap ideas.
Reliance Securities, the broking arm of Reliance Capital, is one of the India’s leading retail broking
houses, providing customers with access to equities, derivatives, currency, IPOs, mutual funds, bonds,
and corporate FDs amongst others. The large array of financial offerings helps customers fulfilling their
investment objectives on one platform.
5. India Infoline Limited

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India Infoline was started in year 1996 and has over 2 million customers.
Head Office: Andheri, Mumbai
Account Opening Fee: Trading + Demat = Rs 750/-
Website: www.indiainfoline.com
Incorporated in 1995, India Infoline (IIFL) is the brokerage firm of India Infoline Group, a fastest
growing financial services solution provider in India. India Infoline is listed on BSE (532636) and NSE
(INDIAINFO) for securities trading.
IIFL offers trading platform and research-based advice for entire range of financial products including
Stocks, Derivatives, Commodities, Insurance, FD's, Loans, Bonds etc.
Equity / Commodity Broking and Research is the key offering of India Infoline. IIFL has a wide network
of 4000+ branches spread over 900+ cities across India (as of Dec 2012). IIFL is very popular among
retail investors and traders as their branches are spread all over India.
IIFL offers 2 different online trading terminals to its customers:
1. Investor Terminal (IT)

Investor Terminal is 5Paisa's equity trading terminal for low volume trader. This is web based terminal
and could access from anywhere. This product provides limited features in comparison of Trader
Terminal, which is another product provided by 5Paisa.
2. Trader Terminal (TT)
Trader Terminal is design for high volume equity traders or day traders. Trader Terminal provides high
volume trading with powerful interface and fast order execution. Few popular features of trader
terminal are:
 Fast trade execution with instant trade confirmation.

 Live streaming quotes and price watch on any number of stocks.
 Intra day charts, updated live, tick-by-tick.
 Live margin, position, marked to market profit & loss report.
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 Set any number of price alerts on any number of scrips.
 Flexibility to customize screen layout and setting.
 Facility to customize any number of portfolios & watch lists.
 Facility to cancel all pending orders at one click.
 Facility to square off all transactions at one click.
 Top Gainers, Top Losers, Most Active, updated live.
 Index information; index chart, index stock information live.
 Market depth, i.e. Best 5 bids and offers, updated live for all stocks.
 Online access to both accounts and DP to check live updated Order and Trade Book.
 Facility to place after market orders.
 Online fund transfer facility from leading Banks including ICICI, HDFC, CITI and UTI banks.
 Online intra-day technical calls.
 Historical charts and technical analysis tools.
6. Kotak Securities Limited
Kotak Securities was incorporated in 1994 and it is subsidiary of Kotak Mahindra.

Head Office: Nariman Point, Mumbai
Account Opening Fee: Derivative brokerage Rs 150 per contract and delivery brokerage is .45%
Website: www.kotaksecurities.com
Kotak Securities Ltd, a subsidiary of Kotak Mahindra Bank was founded in 1994. They offers stock
broking services and distributes financial products in India. They have 1209 branches, franchisees and
satellite offices offers services to 11.95 Lakh customers. They corporate members with the Bombay
Stock Exchange and the National Stock Exchange. They are also a depository participant with National
Securities Depository Limited (NSDL) and Central Depository Services Limited (CDSL).
Kotak securities offers three-in-one account which allows investor to open demat, trading as well as a
bank account together with Kotak Mahindra Bank Limited. One can open those account independently
or at the same time under one umbrella with a single application form. Using 3 in 1 account client
won’t have to manually transfer money to trading account from the bank f=.account. The required
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funds get credited automatically. So it's easy to manage. Once your;- account open you can trade in
Equity, IPO, Mutual Fund, ETF, Tax free bonds, Currency Derivatives, Gold ETF etc.
Kotak Securities Open Account

 Fill online Contact Us form on Kotak Securities web site. Enter your name, phone number, email
address, city and submit the form. Once the form submitted, one of Kotak securities
representative will contact you.
 Download the forms from their website, fill in the required details, and submit it to their
registered office.
 Kotak Securities Account Opening Form, Name Change Request Form, Kotak Securities Account
Closing Form etc. are available on their website. One can fill the form as per their requirement
and submit it to their registered office.
Kotak Securities Trading Platforms
Kotak Securities offers multiple trading platforms to suite investor's requirement. Following are the
trading platforms available by Kotak Sec:
Website Based Trading - A stock treading website which can be accessed though any popular Web
Browser. This is the most convenient and popular way to invest with Kotak Securities. Kotak also offers
a light weight trading website 'Xtralite', which can be used by investors with slow speed internet.
Trading Terminals (KEATProX and FASTLANE) - Kotak offers two different trading terminal based
application which are very popular among stock traders. KEATProX is an exe based installable desktop
application providing fastest trading experience. FASTLANE is a Java applet based application which
gives you a trading terminal kind of experience without any installation on your computer. FASTLANE
gives KEATProX like features and the benefits of website based trading as it can be access from
anywhere though web browser.
Mobile Stock Trading - Kotak offers high speed mobile based application to trade in Stock Market.
Through this mobile app, a customer can Execute Trades, Monitor Portfolio, View Streaming Quotes
and Intraday Charts.
Branch Advisory and Call & Trade - Kotak also offers trading facility though its 1400+ branches and
though call centers using call & trade facility.
PMS (Portfolio Management Service), an account for people who need an expert to help to manage
their investments. NRI Account, a online trading an investment account for NRI investors.
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Trinity Account [3-in-1 Account]:- Trinity Account is an integrated account that helps investors enjoy
the benefits of a Online Trading Account, Bank Account, Demat Account on a single platform for your
securities transaction. This account gives convenience of fund transfer and online trading.
Kotak Securities Advantages

 Kotak Securities website provides wide range of investment options. This includes investment in
equity, IPO's, Bonds, FD's, ETF's, Mutual Funds, Currency Derivatives etc.
 Along with the online trading facility, customer gets access to 1400+ branches for help on
investment and issue resolution.
 Kotak Securities provide daily SMS alerts, market pointers, periodical research reports, stock
recommendations etc. to help the customers.
 Online Chat facility is available to support customer.
 Kotak security offers easy integration of trading account with Citibank, HDFC Bank, UTI Bank
and Kotak Mahindra Bank.
Kotak Securities Disadvantages
 Kotak Securities is a Full Services Broker. The brokerage charged by them is higher than the
Discount Brokers.
7. ICICI Direct
ICICI Direct is a stock trading company of ICICI bank.
Head Office: Mumbai, Maharashtra
Account Opening Fee: Rs 750/- for share trading account, wise investment, active trader account
Website: www.ICICIdirect.com
ICICIdirect is a retail trading and investment service from ICICI Securities, the largest retail stock broker
firm in India offering a wide range of investment options to the retail and institutional customers. ICICI
Securities is part of ICICI Group, India's top financial service provider offering banking and other
financial services. ICICI Securities offers 'online trading and investment' services to over 20 lakhs
customers through ICICI Direct (ICICIDirect.com).
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ICICIDirect offers 2 trading platforms to its customers:
1. Share Trading Account (Website Based Trading)
Website based online Share Trading Account by ICICIDirect is primarily for buying and selling of stocks
at BSE and NSE.
The ICICIDirect website allows Cash Trading, Margin Trading, MarginPLUS Trading, Spot Trading, Buy
Today Sell Tomorrow, IPO Investment, Mutual Fund Investment etc.
ICICIDirect.com website is the primary Investment vehicle of ICICI Limited.
2. Trade Racer (Trading Terminal)
Trade Racer is a power packed Trading platform which provides an investor with Live streaming quotes
& Research Calls, integrated fund transfer system along with multiple watch list facility. Investor can
also do technical analysis with the help advance charting tools. Single Order entry page for Equities and
Derivatives, Technical Analysis, Integrated Fund Transfer System, Customized Interface, Intra-day and
EOD Charts and Shortcut keys for faster access to markets are some of the key features of Trade Racer
Terminal.
Trade Racer Subscription Fee (Cost of using ICICI Trading Terminal)
Trade Racer, the installable trading terminal from ICICI Direct is free for customers who give a
brokerage of more than Rs 750 in a month. For others (if the Trade Racer facility is activated by the
customer); ICICI charges Rs 75 per month towards subscription for Trade Racer.
ICICIDirect Advantages
 3-in-1 account integrates your banking, broking and demat accounts. All accounts are from ICICI
and very well integrated. This feature makes ICICI the most interesting player in online trading
facility. There is absolutely no manual interfere require. This is truly online trading
environment.
 Unlike most of the online trading companies in India which require transferring money to the
broker's pool or towards deposits, at ICICIDirect you can manage your own demat and bank
accounts through ICICIdirect.com. Money from selling stock is available in ICICI bank account as
soon as the ICICIDirect receive it.
 Investment online in IPOs, Mutual Funds, GOI Bonds, and Postal Savings Schemes all from one
website. General Insurance is also available from ICICI Lombard.
 Trading is available in both BSE and NSE.
 Low bandwidth website is available for slow internet connection or for trading from mobile
devices.
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 Through myGTC feature, you can place buy and sell limit orders in equity scripts of your choice;
specifying the period for which you want the order instruction to be valid.
ICICIDirect Disadvantages
 ICICIDirect brokerage is high and not negotiable.
 ICICIDirect doesn't offer commodity trading. With ICICI Trading account you cannot trade at
MCX or NCDEX.
 With ICICIdirect.com e-Invest account(3-IN-1 concept), the Demat Account has to be opened
with ICICI Bank Ltd as the Depository Participant (DP) and the Bank Account has to be opened
with ICICI Bank Ltd. as the Banker.
 ICICI minimum brokerage charge is Rs 35 per trade which is very high for traders who does
small trades.
 ICICI Charges Rs 75 per month fee for using Trading Terminal (Trade Racer) if customer pays
brokerage of less then Rs 750 per month.
 ICICI charges flat Rs 0.05 per share brokerage on stocks quoting upto Rs 10. This makes it very
difficult to trade in penny stocks.
 ICICI Direct charges Rs 25 per call for call & trade after first 20 free calls in a month
8. Motilal Oswal Securities

Motilal Oswal securities Ltd was founded in 1987 and considered to be best local brokerage firm.
Head Office: Mumbai, Maharashtra
Account Opening Fee: Rs 600/- with first year Amc and from next year only Rs 400/-
Website: www.motilaloswal.com
Incorporated in 1987, Motilal Oswal Securities Ltd. (MOSL) is a Mumbai, India based diversified
financial services firm offering a range of products and services such as Private Wealth Management,
Retail Broking and Distribution, Institutional Broking, Asset Management, Investment Banking, Private
Equity, Commodity Broking, Currency Broking and Home Finance.
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Motilal Oswal has diversified client base that includes retail customers (including High Net worth
Individuals), mutual funds, foreign institutional investors, financial institutions and corporate clients.
As of March 2015, Motilal Oswal had a network spread over 520 cities and towns comprising 1,743
Business Locations operated by the company and its Business Partners. Company had 740,000
registered customers and team of 2100 employees.
Solid research is considered as the foundation of Motilal Oswal Securities. Almost 10% of revenue is
invested on equity research. As of March 2015, company had 30 research analysts researching over
250 companies across 20 sectors. From a fundamental, technical and derivatives research perspective,
Motilal Oswal's research reports have received wide coverage in the media.
Motilal Oswal's Trading Platforms
1. Web Platform
Web Platform is suited for first time investors who want a clean and simple interface. Investor can
trade from any internet connected PC and place the order with instant confirmation.
2. Desktop Platform
Desktop Platform is suitable for those investors and traders who want live market watch and faster
execution.
3. Mobile Platform
Mobile platform works on most GPRS enabled mobile phones. Investor can directly buy/sell from
market watch. It also provides the facility to modify or cancel the pending orders.
4. Call N Trade
Call N Trade Platform is suitable when investor don't have online access to their trading site. All Motilal
Oswal customers enjoy Call N Trade services at no additional cost.
ACCOUNT TYPES:
1. Value Pac:
Value Pac is the upfront subscription scheme, which gives significant discounts in brokerage rates with
defined time period to use it. With the wide range of Value Pacs, based on the Volume of Trade and
the Validity period one can enjoy the benefits of placing trades at reduced charges.
Value Pac Schemes
 Delivery Based Trades: 0.25% to 0.18%
 Intra-day Trades: 0.03% to 0.015%
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 Futures Trades: 0.03% to 0.025%
 Options Trades: Rs 60 to Rs 50 per contract
2. Margin account:
Margin account is suitable for those who don't want to commit to a Value Pac (upfront subscription). In
Margin Account investor have to give defined upfront margin amount at the time of opening the
account.
Margin Schemes
 Delivery Based Trades: 0.30% to 0.25%
 Intra-day Trades: 0.03% to 0.025%
 Futures Trades: 0.03% to 0.025%
 Options Trades: Rs 100 to Rs 50 per contract
Motilal Oswal Advantages
 Wide Range of Investment Choices- Equity, Derivatives, IPOs Or Mutual Funds.

 Discounted Brokerage Schemes that offers true value for money.
 Complete Ease of Operation with more than 39 banks for Fund Transfer.
9. HDFC Securities
HDFC securities was established 10 years back. It has over a million customers.
Account Opening Fee: Minimum Brokerage per order Rs 25/- for resident and NRI. Subject to ceiling of
2.5% of total traded value
Website: www.hdfcsec.com
HDFC securities Limited is a financial services intermediary and a subsidiary of HDFC Bank, a private
sector bank in India . It is one of the leading stock broking companies in India and have completed 15
years in operation. HDFC securities was founded in the year 2000 and is headquartered in Mumbai
with branches across major cities and towns in India.
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HDFC Securities(HDFCsec) is Equity Trading Company of HDFC Bank. HDFC Securities provide both
online trading and trading on phone. The HDFC Securities trading account has a unique 3-in-1 feature
that integrates your HDFC Securities trading account with your existing HDFC bank savings account and
existing Demat account. Funds / shares are seamlessly moved from the linked Demat/Bank account to
execute the transactions.
HDFCsec provides Cash-n-Carry on both NSE and BSE, Day trading on both NSE and BSE, Trade on
Futures & Options on the NSE and Online IPO Investment.
Features on HDFC Securities Online trading

 Seamless Transactions - By integrating your accounts, we ensure minimal waste of time during
movement of your funds and shares.
 Speed - Orders are placed electronically, so proceeds are available instantly.
 No manipulation - To prevent any mismanagement, we will send you an email confirmation, the
minute your order is executed.
 Safety and Security - HDFC Securities offer the highest level of security such as 128-bit
encryption technology.
 Dedicated and Separate contact numbers - for trading over the phone as well as for customer
care.
Trade In: BSE and NSE
HDFC securities began operations in April 2000. In the beginning it was a joint venture between HDFC
Bank Limited, HDFC Limited and Indocean eSecurities Holdings Limited.
Along with offering stock broking services, HDFC securities is also a distributor of financial products. In
2006, HDFC Bank bought HDFC Ltd's stake and in 2008 acquired another 4% from Indocean eSecurities.
Currently HDFC securities is a subsidiary of HDFC Bank
HDFC Securities Advantages:
The 3-in-1 account, which includes HDFC Bank Account, HDFC Securities Trading Account and HDFC
Securities Demat Account, is the best offering for retail investors in India as it provides easiest way to
invest in stock market and other financial instruments.
10. Bajaj Capital

Bajaj Capital started its website justtrade.in in the year 2008.
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Account Opening Fee: Onetime payment of Rs 499/- and trading account with 1st year AMC and from
next year it is Rs 180/- and Rs 1499/- for DEMAT
Website: www.justtrade.in
Just Trade.in is the Online Investment & Stock Broking business from the house of Bajaj Capital - India's
leading Financial Planning and Investment Advisory Company from last 46 years.
The objective for Just Trade is to provide a seamless experience to the Indian investors who can now
invest online and in comfort of their privacy. www.justtrade.in intends to give clients a 'new age'
holistic service platform that will enable investments into a wide range of products like Equity, MF or
IPOs and services such as Advisory & Financial Planning through the online route with a single Log in id.
The aim is to engage and educate the investor and offer value added services with flexible pricing
packages that include variable brokerage and fixed fee based plans to give more value for money spent
by the Investor.
The Online Platform also offers Investors to access the Financial Planning Services online that enables
them to manage their finances in a way where every development in their financial life will be
documented and every course of action reviewed.
Some of the Key highlights of an investor's Just Trade A/c apart from providing a Transaction Platform
across Trading, Mutual Funds & IPOs include:-
Goal Based Planning
Online Financial Planning
Advisory Services
Account Types
Justtrade.in provides 4 different kind of Online Equity Trading platform to their investors. Just Trade
also provides free call & Trade facilities, Phone a Fund that gives direct access to Relationship Manager
and 'Just Trade Equity Advisory Team'.
1.Just Activ Basic Plus
Just Activ Basic Plus as the name sounds is for active investors who wants to buy and sell shares,
futures, options, mutual funds and applying for IPOs online with little paper work. Just Activ provides
two options for share trading. Either one can use the pull technology where by one can get select a
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stock at a time check the quotes and place the order or use the browser based streaming quotes
engine which will look like a dealer terminal.
2.Just Activ Gold
Just Activ Gold is an account which provides investment advice with zero transaction charges for a
nominal fee except the statutory fees and taxes payable to government authorities.
3.Just Activ Premier
Just Activ Premier is an account which provides online platform to execute trades with zero brokerage
charges for a nominal fee except the statutory fees and taxes payable to government authorities.
4.Just Lite
Just Lite as the name sounds is a light, simple online service which helps investors to buying and selling
shares, futures, options, mutual funds and applying for IPOs online with little paper work. Just Lite has
an easy to understand and simple user interface. The share trading engine works on push pull
technology where by investor can get select a stock at a time check the quotes and place the order.
The quotes would be refreshed every time when click the refresh button.
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MOTILAL OSWAL [Company Analysis]
Motilal Oswal Financial Services Ltd. (BSE, NIFTY, NASDAQ, Dow Jones, Hang Seng) is a diversified
financial services firm offering a range of financial products and services such as Wealth Management,
Retail Broking and Distribution, Institutional Broking, Asset Management, Private Equity, Investment
Banking, Commodity Broking and Home Finance.
The company was formed in 1987 by Motilal Oswal and Raamdeo Agrawal after they acquired
membership on The BSE. Motilal Oswal was elected director and joined the Governing Board of the
Bombay Stock Exchange in 1998.
Motilal Oswal Securities is a Depository Participant of NSDL and a Depository Participant of Central
Depository Services Limited (CDSIL) in 2000. The company started offering Derivatives products and
advisory services on both BSE as well as NSE in 2001
In 2006 the company entered Private Equity and Investment Banking business. In the same year,
Motilal Oswal group acquired South Indian brokerage firm – Peninsular Capital Markets. The company
tied up with State Bank of India and Punjab National Bank in 2006 and 2007 to offer online trading to
its customers. 2008 saw the company create one of India's largest Equity Dealing & Advisory rooms,
spread over 26,000 sq ft (2,400 m2) in Malad, Mumbai.
In January 2010, Motilal Oswal Financial Services (through its subsidiary Motilal Oswal Securities Ltd.)
received the final certificate of registration approval from Securities and Exchange Board of India (SEBI)
to set up a mutual fund business in the country.
In January 2010, Motilal Oswal Financial Services (through its subsidiary Motilal Oswal Securities Ltd.)
received the final certificate of registration approval from Securities and Exchange Board of India (SEBI)
to set up a mutual fund business in the country. Motilal Oswal Asset Management Company is
registered with SEBI as the Investment Manager for Motilal Oswal Mutual Fund. It was incorporated on
November 14, 2008.
MOAMC is a 100% subsidiary of Motilal Oswal Securities Limited. It provides Investment Management
and Advisory Services to investors based within and outside India and having Portfolio Management
Services business, ETFs and Mutual Funds. Motilal Oswal Asset Management Company Ltd., one of the
fastest growing Asset Management Companies in India and has recently crossed the $1 billion in equity
Assets Under Management (AUM) mark in June 2015 registering itself into an elite club.
AHFCL is a subsidiary of Motilal Oswal Securities Limited (MOSL) which is a part of Motilal Oswal
Financial Services Limited (MOFSL) Aspire Home Finance Corporation Limited (AHFCL) is a
professionally managed housing finance company with unique combination of financially sound and
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technically experienced promoters who are well known in their domain for professional ethics and
strong execution capabilities.
As on dated Total Login Number is 81,447 with Amount of Rs. 9050.68 Crore out of this total
Sanctioned Number 53,405 with Amount of Rs. 5472.38 Crores. Total Disbursement till date Rs.
4145.81 Crore.
AHFCL has been rated “CRISIL A+/Stable” by CRISIL and “[ICRA]AA-(Stable)” by ICRA for long term
borrowings and “ICRA A1+” by ICRA for short term borrowings
Awarded as “India’s most admired and valuable Housing Finance Company” at the India Leadership
Conclave 2015
Received “Financial Services Institution of the Year” award by ASSOCHAM India at ICT 4 Development
Awards 2015
Awarded "Agency Innovation of the Year (BFSI Sector)" at the Brand Excellence Awards 2015 presented
by ABP News
MALA has been awarded as “Finnoviti 2016” by Banking Frontiers & Deloite.
Our MD & CEO Mr. Anil Sachidanand received “Community Leadership Award” to at the 6th
International Conference & Game Changers Awards organized by the HR Club (2016)
Awarded “Fast 50 Brands 2016” by World Consulting Research Corporation (2016)
Awarded the “Most Admired Brand for Affordable Loans of the year” at the 2016 Leaders Awards
Received “The Innovative Marketing Practices Award” at 7th National Conference and Game Changers
Awards, 2017.
Received “The Innovative Product and Services Award” at 7th National Conference and Game Changers
Awards, 2017.
Financials
The high powered advisory committee of SEBI recommended the case for settlement on payment of
Rs. 5,00,000/- towards settlement charges. MOSL paid the above amount and accordingly SEBI has
disposed off the pending inquiring proceedings against MOSL.
Mumbai, Apr 27, 2017: Motilal Oswal Financial Services Ltd. announced its results for the quarter and
year ended Mar 31, 2017 post approval by the Board of Directors at a meeting held in Mumbai on Apr
27, 2017.
48
Rs Crore FY17 YoY Chg Q4FY17 YoY Chg
Revenues 1,818 66% 537 69%
PBT 515 117% 138 103%
PAT 360 113% 90 91%
EPS (FV 1) 25 6
Performance for the Year and Quarter ended Mar 31, 2017
Consolidated revenues were Rs 1818 crores in FY17, +66% YoY. It was Rs 537 crores in Q4FY17, +69%
YoY· Strong growth in FY17 across businesses. Housing finance was +160% YoY, asset management
business +68% YoY and capital market businesses +40% YoY. The revenue mix is seeing healthy
diversification, as 56% of the revenue came from linear sources like asset management and wealth
business and housing finance vs. 44% last year. While the share of Capital Markets reduced in the mix,
it continues to grow in absolute terms. Both asset management and housing finance saw rapid growth
in assets, and improved in profitability despite significant investments in areas like manpower, network
and marketing. Broking improved its high-yield cash market share, while its distribution piece clocked
solid growth in mobilization. Investment banking saw a record year, in terms of ECM transactions done
Consolidated PAT was Rs 360 crores in FY17, +113% YoY. It was Rs 90 crores in Q4FY17, +91% YoY
The contribution from the new businesses is becoming visible, with 57% of the profit coming from
asset & wealth management and housing finance in FY17 vs. 45% last year. Profits from all businesses
grew this year, with housing finance profit +103% YoY, asset & wealth management +237% YoY and
capital market businesses +178% YoY
Significant investments have been made into manpower in broking (+72% from Mar-15) and housing
finance (+115% YoY), advertising in asset management (+105% YoY) and housing finance branches
(+135% YoY). These upfronted investments will translate into operating leverage in the coming year.
Some of this was visible this year, with PAT Margin of 20% in FY17 vs. 15% in FY16. However, the full
effect of operating leverage is yet to unfold in our businesses
As of Mar 2017, net worth is Rs 1786 crores, gross borrowing is Rs 5067 crores and net borrowing is Rs
4606 crores (including Aspire). Excluding Aspire, gross and net borrowing were Rs 1269 crores and Rs
49
971 crores respectively In line with our strategy to deliver sustainable 20%+ ROE in the long term, ROE
for FY17 was 22% on reported PAT vs. 12% in FY16. However, this does not include unrealized gains on
investments in Motilal Oswal’s mutual fund products (Rs 334 crores, as of Mar 2017). Including this,
the ROE in FY17 would have been ~31%.
Balance sheet has strong liquidity, with ~Rs 976 crores as of Mar 2017 in near-liquid investments to
fund future investments
Declared final dividend of Rs 3 per share (total dividend at Rs 5.5 for FY17 vs. Rs 3.5 for FY16).
Performance of Business Segments for the Year and Quarter ended Mar 31, 2017
* Capital markets Businesses (broking & investment banking) saw good growth this year Broking &
related revenues in FY17 were Rs 662 crores, +30% YoY. It was Rs 178 crores in Q4FY17, +41% YoY.
Market ADTO grew 35% YoY in FY17, with F&O +36% YoY and cash +23% YoY. Q4FY17 saw
disproportionate high cash volumes in the market due to large-scale inter-promoter transfers. Overall
market share was 2.1% in FY17 vs. 2% in FY16, and cash market share improved YoY. Given the
continued shift in market volume to F&O, blended yield in FY17 was 3.1 bps in FY17 vs. 3.5 bps in FY16.
The QoQ decline in MOSL PAT is due to higher provisioning for year-end employee bonus on the back
of strong business performance in the year and lower treasury gains in Q4FY17. Some of the operating
leverage from the investments in manpower (+72% from Mar-15), brand & technology is visible, as
MOSL’s PAT margin improved to 15% in FY17 vs. 11% in FY16. However, the full benefit of operating
leverage is yet to unfold.
In retail broking & distribution, distribution business saw significant traction in FY17. Distribution net
sales were Rs 1594 crores, +133% YoY. AUM was Rs 4393 crores, +147% YoY. With only ~20% of the
network tapped, we expect meaningful increase in AUM and fee income as cross-selling increases.
Sales productivity improved, with 50%+ A/Cs opened via e-KYC & 60%+ leads generated from online
sources. Online business continued to grow. It was 45% of retail volumes in FY17 from 36% in FY16.
Mobile app formed an increasing share within this.
In institutional broking, blocks continued to gain solid traction within our volumes. Institutional clients
were 630, +6% YoY. We empanelled several FIIs this year
Investment banking fees were Rs 86 crores in FY17, +254% YoY. It was Rs 42 crores in Q4FY17, +444%
YoY. IB business saw a landmark year with all time high revenues since inception. It topped the FY17
India QIP league table ranking, and completed 10 ECM transactions in the year - its best ever
performance in terms of number of deals and value of transactions.
Capital markets businesses collectively contributed ~41% of revenues in FY17 vs. ~49% in FY16
* Asset and Wealth Management Businesses near critical mass

50
In asset management, Net Sales across MF, PMS & AIF were Rs 5720 crores in FY17, +10% YoY, with
quarterly net flow of Rs 1927 crores in Q4FY17, +134% YoY. AUM was Rs 20302 crores, +94% YoY. Net
Sales in the context of the closing AUM provides visibility of continued strong AUM growth. Net yield
was close to ~1% in FY17. Investment performance was robust this year. As of Mar 2017, ~14% of non-
mutual fund AUM was performance-fee linked. Our target is to increase this further. Our rank in Equity
AUM improved to 9 vs. 14 in FY15. All 3 mutual funds complete their 3-year performance track record,
which should enhance participation from distributors. Advertising/marketing spends were Rs 18.2
crores in FY17, +105% YoY, forming 13% of net revenue in FY17. This should boost brand-recall. Total
costs ex-distribution sharing were Rs 65 crores in FY17, +55% YoY. Significant investments in
manpower (+48% from Mar-15) and advertising/marketing have been upfronted, which should help
build operating leverage in future. With financial savings to total savings in India rising from 31% in
FY12 to 41% in FY16, the domestic market should continue to benefit from this shift towards financial
assets. In offshore, which is 2X of institutionally managed equity assets in India, we are seeing initial
interest in our offshore products
In private equity, we manage an AUM of Rs 3073 crores across 2 growth capital PE funds & 3 real
estate funds. The PE business has demonstrated robust profitability and the RE business has shown
significant scalability. The 1st growth fund has returned ~209% capital so far. It is estimated to deliver a
gross multiple of ~3.5X. This means over half of the estimated profits are yet to be booked. The 2nd
growth fund has committed 100%.
Asset Management fee (asset management & private equity) were Rs 375 crores in FY17, +68% YoY. It
was Rs 128 crores in Q4FY17, +94% YoY. This contributed ~21% of consolidated revenues in FY17 vs.
20% in FY16
In Wealth management, Net Sales was Rs 1776 crores in FY17, +21% YoY, with quarterly net flow at Rs
364 crores in Q4FY17, +2% YoY. AUM was Rs 10100 crores, +57% YoY. Net Sales in the context of
closing AUM provides visibility of continued strong AUM growth. We enjoy a yield of ~0.87%, due to
the higher share of equity & alternates in our AUM. A strong brand image helped attract quality RM
talent.
* Housing finance has shown traction in assets & liabilities, while maintaining risk & operational
parameters
Housing finance income was Rs 571 crores in FY17, +160% YoY. It was Rs 170 crores in Q4FY17, +87%
YoY.
Disbursements were Rs 2404 crores in FY17, +32% YoY, with quarterly disbursements at Rs 924 crores,
+26% YoY. Loan Book was Rs 4141 crores, +2X YoY. Disbursements in the context of the closing loan
51
book provide visibility of continued strong growth in assets. Average yield held firm at ~13.4% on a YoY
basis.
Expanded into 5 new states in Q4FY17 (Rajasthan, Karnataka, Andhra Pradesh, Tamil Nadu &
Chattisgarh). Disbursements of the HFC industry in these 5 states in FY15 were ~Rs 45000 crores, which
gives an indication of the addressable market. Branch network increased from 51 to 120 during this
year, with 32 in the new states
In liabilities, ~58% borrowings were from NCDs and ~42% from bank loans. As of Mar 2017, 32
Banks/NBFC had extended lines, apart from 22 institutions to whom NCDs were allotted. This was 29
and 14 respectively last year
Average cost of borrowing raised cumulatively has been ~9.4%, while it was ~9% on the borrowings
raised in FY17. Credit ratings are CRISIL A+ Stable and ICRA AA-. Gearing remains conservative, with
Debt/Equity ratio at 6X
ROA for FY17 was 2.6%, while ROE was 16.7%. Asset quality remains under control, with GNPL at 0.6%
as of Mar 2017. We maintained steady operating metrics. Average ticket-size came down from Rs 10
lakhs as of Mar 2016 to Rs 8.98 lakhs as of Mar 2017. LTV was ~60% as of Mar 2017 vs. ~64% last year.
FOIR was ~46% as of Mar 2017, same as last year
Cumulative capital infusion from sponsor is Rs 500 crores and net worth is Rs 633 crores, as of Mar
2017
Increase in state outreach (4 to 9 YoY), branches (51 to 120 YoY) and employees (489 to 1,051 YoY)
resulted in a high Cost-Income ratio of ~36% in FY17 vs. ~37% in FY16, despite doubling of the loan
book. This network expansion is expected to yield results in FY18
Invested significantly into Digitization to reduce opex and TAT, and improve customer convenience. We
expect majority of the transactions to be covered by our digital initiatives
PMAY CLSS is a demand-side boost to this sector, and bulk of our loans qualifies for this scheme. Tax-
relief for developers on unsold stocks for 1 year post project completion and reclassification of housing
unit size from 30-60 sq. m. built-up area to 30-60 sq.m. carpet area for subsidy qualification are supply-
side boosts to this sector
52
DATA ANALYSIS
AND
INTERPRETITION
53
COMPARITIVE ANALYSIS OF LARGECAP50, MIDCAP50 & SMALLCAP50
1.The following data representing the NIFTY LARGECAP50, MIDCAP50 & SMALLCAP50 indices
fluctuations of 2007
change in nifty largecap 50 change in nifty midcap 50 change in nifty smallcap

Date % % 50 %
January-07
February-07 -8.3 -11.7 -7.0
March-07 2.0 -1.9 -2.0
April-07 7.0 11.6 12.7
May-07 5.1 7.2 11.3
June-07 0.5 6.4 3.8
July-07 4.9 2.6 3.3
August-07 -1.4 -2.3 -0.9
September-07 32.2 15.3 15.4
October-07 -2.3 13.0 9.5
November-07 6.5 4.7 10.7
December-07 -16.3 17.6 17.5
Annual change 25.9 77.5 99.7
mean 2.2 6.5 8.3
standard
deviation 12.0 8.7 7.8
variance 144.1 76.1 61.3
sharp ratio 1.6 8.1 11.8
INTERPRETITION:
 The annual % change experienced a high growth in smallcap50 i.e. 99.7% and
largecap50 experienced a low growth of 25.9%
 The standard deviation of large is higher in largecap50 i.e. 12% and low in
lower in smallcap50 i.e. 7.8 and midcap50 is maintaining moderately
54
 The smallcap50 was able to stand with a higher sharp ratio of 11.8 and
followed by midcap50 of 8.1 and the sharp ratio of largecap50 was
comparatively low i.e. 1.6
 considering a period of twelve months of the year 2007 the smallcap50 had
shown a better performance in annual % change,standard deviation and sharp
rario then of the largecap50 and smallcap50
2007
40
30
20
10
0
Feb-07 Mar-07 Apr-07 May-07 Jun-07 Jul-07 Aug-07 Sep-07 Oct-07 Nov-07 Dec-07
-10
-20
change in nifty largecap 50 % change in nifty midcap 50 % change in nifty smallcap 50 %
WHERE,
Sharpe ratio = (Mean portfolio return − Risk-free rate)/Standard deviation of portfolio return
The formula for standard deviation uses three variables. The first variable is to be the value of each point
within the data set, traditionally listed as x, with a sub-number denoting each additional variable (x, x1, x2,
x3, etc.). The mean, or average, of the data points is applied to the value of the variable M, and the number
of data points involved is assigned to the variable n
55
change in nifty
change in nifty largecap50 change in nifty midcap50 smallcap
Date % % 50 %
December-07
January-08 1.7 0.8 -24.6
February-08 -9.4 -15.3 -1.4
March-08 9.1 15.6 -16.8
April-08 -5.7 -5.4 12.6
May-08 -17.0 -24.6 -6.9
June-08 7.2 8.5 -17.7
July-08 0.6 1.2 2.3
August-08 -10.1 -16.6 0.2
September-08 -26.4 -30.0 -19.6
October-08 -4.5 -7.0 -35.5
November-08 7.4 13.0 -9.4
December-08 -2.9 -11.1 6.8
Annual change -45.0 -58.1 -63.6
mean -3.7 -4.8 -5.3
standard
deviation 10.5 14.4 14.1
variance 111.3 207.4 198.7
sharp ratio -4.9 -4.5 -5.0
56
INTERPRETITION:
 The annual % change experienced a very low growth in smallcap50 i.e. -
63.6% and largecap50 experienced a higher growth of -45% and midcap50
stands at -58.1
 The standard deviation is higher in midcap50 i.e. 14.4% and lower in
largecap50 i.e. 10.7 and smallcap50 is maintaining moderately at 14.1
 The midcap50 was able to stand with a higher sharp ratio of -4.5 and followed
by largecap50 of -4.9 and the sharp ratio of smallcap50 was comparatively low
i.e. -5.0
 considering a period of twelve months of the year 2008 the largecap50 had
rario then of the midcapcap50 and smallcap50
2008
20
10
0
JAN FEB MAR APR MAY JUNE JULY AUG SEP OCT NOV DEC
-10
-20
-30
-40
WHERE,
57
58
change in nifty largecap 50 change in nifty midcap 50 change in nifty

Date % % smallcap 50 %
December-08
January-09 -3.9 -7.1 -8.0
February-09 9.3 7.0 -7.9
March-09 15.0 17.0 9.6
April-09 28.1 49.0 20.8
May-09 -3.5 1.4 51.6
June-09 8.0 8.3 -3.3
July-09 0.6 4.1 8.6
August-09 9.0 8.2 13.4
September-09 -7.3 -6.2 3.6
October-09 6.8 7.2 -8.5
November-09 3.3 4.5 6.2
December-09 -6.1 -3.9 6.5
mean 6.4 11.1 11.4
standard
deviation 10.1 14.8 16.6
variance 102.7 218.7 275.5
INTERPRETITION:
 The annual % change experienced a very higher growth in smallcap50 i.e.
136% and largecap50 experienced a lower growth of 76.7% and midcap50
stands at 133.2
 The standard deviation is higher in smallcap50 i.e. 16.6% and lower in
largecap50 i.e. 10.1 and midcap50 is maintaining moderately at 14.8
 The midcap50 was able to stand with a higher sharp ratio of 8.5 and followed
by smallcap50 of 7.8 and the sharp ratio of largecap50 was comparatively low
i.e. 6.9
59
 considering a period of twelve months of the year 2009 the midcap50 had
60
2009
60
50
40
30
20
10
0
-10
-20
WHERE,
61
change in nifty largecap50 change in nifty midcap50 change in nifty smallcap50

Date % % %
December-09
January-10 0.8 -0.9 -0.9
February-10 6.6 7.0 -2.7
March-10 0.6 5.4 5.4
April-10 -3.6 -6.5 4.4
May-10 4.4 4.2 -8.0
June-10 1.0 1.1 4.1
July-10 0.6 0.7 1.0
August-10 11.6 6.7 2.7
September-10 -0.2 2.7 6.0
October-10 -2.6 -5.3 1.6
November-10 4.6 -0.2 -8.5
December-10 -10.2 -12.5 3.9
mean 1.0 0.1 0.7
standard
variance 30.2 34.1 24.2
sharp ratio 0.9 -0.9 0.4
INTERPRETITION:
 The annual % change experienced a very high growth in largecap50 i.e.
11.9% and midcap50 experienced a lower growth of 1.5% and smallcap50
stands at 8.7
smallcap50 i.e. 4.9 and largecap50 is maintaining moderately at 5.5
 The largecap50 was able to stand with a higher sharp ratio of 0.9 and followed
by smallcap50 of 0.4 and the sharp ratio of midcap50 was comparatively low
i.e. -0.9
62
rario then of the midcap50 and smallcap50
63
2010
15
10
0
-5
-10
-15
WHERE,
64
change in nifty largecap 50 change in nifty midcap 50 change in nifty smallcap 50

Date % % %
December-10
January-11 -3.1 -9.5 -12.6
February-11 9.4 8.4 -7.0
March-11 -1.4 1.6 6.3
April-11 -4.8 -2.9 3.6
May-11 3.2 -2.1 -2.6
June-11 -2.9 -0.4 0.4
July-11 -8.8 -10.7 -1.9
August-11 -1.2 -2.3 -8.9
September-11 7.8 2.7 -1.6
October-11 -9.3 -11.3 5.0
November-11 -4.3 -8.5 -16.2
December-11 12.4 20.3 -11.7
Annual change -2.5 -8.7 -31.5
mean -0.2 -0.7 -2.6
standard
variance 49.0 81.6 53.7
sharp ratio -1.4 -1.7 -5.3
INTERPRETITION:
 The annual % change experienced a comparitive high growth in largecap50
i.e. -2.5% and smallcap50 experienced a lower growth of -31.5% and
midcap50 stands at -8.7
 The midcap50 was able to stand with a higher sharp ratio of -1.4 and followed
by midcap50 of -1.7 and the sharp ratio of smallcap50 was comparatively low
i.e. -5.3
65
rario then of the midcap50 and largecap50
66
2011
25
20
15
10
0
-5
-10
-15
-20
WHERE,
67

Date % % 50 %
December-11
January-12 3.6 11.3 17.5
February-12 -1.7 -2.0 8.8
March-12 -0.9 -4.1 -2.5
April-12 -6.2 -10.1 -0.9
May-12 7.2 7.7 -8.0
June-12 -0.9 -3.6 6.9
July-12 0.6 -3.1 -4.5
August-12 8.5 12.9 -1.9
September-12 -1.5 -3.5 12.3
October-12 4.6 5.2 -2.8
November-12 0.4 3.5 7.2
December-12 2.2 -1.9 0.8
Annual change 12.1 -1.0 14.3
mean 1.0 -0.1 1.2
standard
variance 17.0 49.2 59.1
sharp ratio 1.2 -1.1 0.9
INTERPRETITION:
 The annual % change experienced a comparitive high growth in smallcap50
i.e. 14.3% and midcap50 experienced a lower growth of -1.0% and largecap50
stands at 12.1
 The largecap50 was able to stand with a higher sharp ratio of 1.2 and followed
by smallcap50 of 0.9 and the sharp ratio of midcap50 was comparatively low
and turns negitive i.e. -1.1
68
rario then of the midcap50 and smallTGcap50
69
2012
20
15
10
0
-5
-10
-15
WHERE,
70

Date % % 50 %
December-12
January-13 -5.7 -13.5 -2.4
February-13 -0.2 -3.9 -12.7
March-13 4.4 8.1 -4.2
April-13 0.9 -3.1 5.0
May-13 -2.4 -6.5 -4.6
June-13 -1.7 -3.3 -10.8
July-13 -4.7 -3.3 -7.7
August-13 4.8 6.5 -2.8
September-13 9.8 10.6 4.9
October-13 -2.0 4.5 15.0
November-13 2.1 5.7 4.7
December-13 -3.4 -7.4 8.2
Annual change 7.0 5.9 -8.5
mean 0.6 0.5 -0.7
standard
variance 20.2 54.3 68.0
sharp ratio 0.0 -0.1 -1.9
INTERPRETITION:
 The annual % change experienced a comparitive high growth in largecap50
i.e. 7.0% and smallcap50 experienced a negitive growth of -8.5% and
midcap50 stands at 5.9%
 The largecap50 was able to stand with a nutreal sharp ratio of 0 and followed
by midcap50 of 0.1 and the sharp ratio of smallcap50 was comparatively low
and turns negitive i.e. -1.9
71
72
2013
20
15
10
0
-5
-10
-15
WHERE,
73

Date % % 50 %
December-13
January-14 3.1 1.8 -3.7
February-14 6.8 13.7 5.1
March-14 -0.1 2.4 8.9
April-14 8.0 20.7 3.8
May-14 5.3 10.9 20.3
June-14 1.4 -6.8 14.3
July-14 3.0 -0.6 -4.7
August-14 0.1 -0.1 0.3
September-14 4.5 5.3 1.5
October-14 3.2 3.8 3.8
November-14 -3.6 -1.6 2.1
December-14 6.4 3.7 0.8
mean 3.4 5.1 5.8
standard
variance 11.0 55.9 51.4
INTERPRETITION:
 The annual % change experienced a comparitive high growth in smallcap50
i.e. 69.2% and largecap50 experienced a low growth of 40.3% and midcap50
stands at 60.9%
 The largecap50 was able to stand with a higher sharp ratio of 10.1 and
followed by smallcap50 of 8.7 and the sharp ratio of midcap50 was
comparatively low and it is 7.2
74
75
2014
25
20
15
10
0
-5
-10
WHERE,
76

Date % % 50 %
December-14
January-15 0.4 -1.4 5.8
February-15 -4.0 -1.9 -0.9
March-15 -3.6 -3.5 -0.7
April-15 3.1 3.6 -2.4
May-15 -0.8 -4.7 1.5
June-15 2.0 6.4 -3.5
July-15 -6.8 -8.2 9.2
August-15 0.0 2.1 -10.9
September-15 1.5 3.3 0.9
October-15 -1.6 3.0 0.1
November-15 0.1 0.3 2.7
December-15 -6.4 -10.7 3.2
Annual change -15.9 -11.4 -1.9
mean -1.3 -0.9 -0.2
standard
variance 10.4 26.2 25.0
sharp ratio -7.1 -3.6 -1.8
INTERPRETITION:
 The annual % change experienced a negitive low growth in smallcap50 i.e. -
1.9% and largecap50 experienced a high negitive growth of -15.9% and
midcap50 stands at -11.4%
 The smallcap50 was able to stand with a negative low sharp ratio of -1.8 and
followed by midcap50 of -3.6 and the sharp ratio of largecap50 was
comparatively had a high negative growth of -7.1
77
rario then of the midcap50 and largecap50
78
2015
15
10
0
-5
-10
-15
WHERE,
79
10.The following data representing the NIFTY LARGECAP50, MIDCAP50 & SMALLCAP50
indices fluctuations of 2016

Date % % 50 %
December-15
January-16 -6.0 -10.8 -12.6
February-16 10.8 17.6 -14.3
March-16 1.4 3.7 14.7
April-16 4.0 1.8 6.2
May-16 1.6 3.5 1.9
June-16 4.2 5.4 7.8
July-16 1.7 5.6 4.7
August-16 -2.0 1.8 1.9
September-16 0.3 3.5 1.8
October-16 -4.8 -8.5 6.1
November-16 -0.5 -2.3 -11.3
December-16 4.6 5.6 -3.1
mean 1.9 3.5 1.1
standard
variance 20.2 52.8 80.3
INTERPRETITION:
 The annual % change experienced a comparitive high growth in midcap50 i.e.
42.1% and smallcap50 experienced a low growth of 13.5% and largecap50
stands at 22.5%
 The midcap50 was able to stand with a higher sharp ratio of 4,8 and followed
by largecap50 of 3.5 and the sharp ratio of smallcap50 was comparatively low
and it is 0.7
80
 considering a period of twelve months of the year 2016 the midcap50 had
81
2016
20
15
10
0
-5
-10
-15
-20
WHERE,
82
11.The following data representing the NIFTY LARGECAP50, MIDCAP50 & SMALLCAP50
indices fluctuations of 2017

Date % % 50 %
December-16
January-17 3.7 8.3 8.3
February-17 3.3 4.7 8.0
March-17 1.4 6.3 6.6
April-17 3.4 -3.7 8.5
May-17 -1.4 -0.3 -1.9
June-17 0.3 1.0 1.9
half-yearly
change 11.2 16.9 35.2
mean 1.9 2.8 5.9
standard
variance 4.2 20.1 18.4
INTERPRETITION:
 The half-yearly % change experienced a comparitive high growth in
smallcap50 i.e. 35.2% and largecap50 experienced a low growth of 11.2% and
midcap50 stands at 16.9%
 The smallcap50 was able to stand with a higher sharp ratio of 6.6 and followed
by midcap50 of 2.2 and the sharp ratio of largecap50 was comparatively low
and it is 2.1
 considering a period of six months of the year 2017 the smallcap50 had shown
a better performance in annual % change,standard deviation and sharp rario
then of the largecap50 and midcap50
83
2017
10.0
8.0
6.0
4.0
2.0
0.0
January/17 February/17 March/17 April/17 May/17 June/17
-2.0
-4.0
-6.0
WHERE,
84
LARGECAP50 CORELLATION WITH GDP AND INFLATION RATES
large cap50
Annual
year sharp ratio change in % inflation GDP
2007 1.6 25 5.14 9.32
2008 -4.9 -45 9.7 6.72
2009 6.9 76.7 14.97 8.59
2010 0.9 11.9 9.47 8.91
2011 -1.4 -2.5 6.49 6.69
2012 1.2 12.1 11.17 4.47
2013 0 7 9.13 4.74
2014 10.1 40.3 5.86 7.5
2015 -7.1 -15.9 5.88 8
2016 3.5 22.5 4.97 7.1
COORELATION inflation GDP

with annual change in % 0.315591 0.311625
with sharp ratio 0.151815 0.150946
INTERPRETITION:
The annual percentage change of largecap50 is positively correlated with
inflation[0.315] and GDP[0.312] with approximate changes
The sharp ratio of largecap50 is positively correlated with inflation[0.151]
and GDP[0.150] with approximate changes
The inflation rate has comparitively more positive correlation with annual
% change of then sharp ratio
The GDP has comparatively more positive correlation with annual %
change of then sharp ratio
85
LARGECAP50
100
80
60
40
20
0
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
-20
-40
-60
sharp ratio Annual change in % inflation GDP
86
MIDCAPCAP50 CORELLATION WITH GDP AND INFLATION RATES
Midcap50
Annual
year sharp ratio inflation GDP
change in %
2007 8.1 77.5 5.14 9.32
2008 -4.5 -58.1 9.7 6.72
2009 8.5 133.2 14.97 8.59
2010 -0.9 1.5 9.47 8.91
2011 -1.7 -8.7 6.49 6.69
2012 -1.1 -1 11.17 4.47
2013 -0.1 5.9 9.13 4.74
2014 7.2 60.9 5.86 7.5
2015 -3.6 -11.4 5.88 8
2016 4.8 42.1 4.97 7.1

with sharp ratio -0.00618 0.442894
INTERPRETITION:
The annual percentage change of midcap50 is positively correlated with
inflation[0.206] and GDP[0.467] , but GDP exposed a higher impact
The sharp ratio of midcap50 is negitively correlated with inflation[-0.006]
and psssitively correlated with GDP[0.442] with approximate changes
The inflation rate has comparitively more positive correlation with annual
% change of then sharp ratio
87
MIDCAP50
150
100
50
0
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
-50
-100
88
SMALLCAPCAP50 CORELLATION WITH GDP AND INFLATION RATES
smallcap50
Annual
year sharp ratio inflation GDP
change in %
2007 11.8 99.7 5.14 9.32

2008 -5 -63.6 9.7 6.72
2009 7.8 136.4 14.97 8.59
2010 0.4 8.7 9.47 8.91
2011 -5.3 -31.5 6.49 6.69
2012 0.9 14.3 11.17 4.47
2013 -1.9 -8.5 9.13 4.74
2014 8.7 69.2 5.86 7.5
2015 -1.8 -1.9 5.88 8
2016 0.7 13.5 4.97 7.1

with sharp ratio -0.00023 0.519083
INTERPRETITION:
The annual percentage change of smallcap50 is positively correlated with
inflation[0.229] and GDP[0.515] , but GDP exposed a higher impact
The sharp ratio of smallcap50 has no correlation with inflation[0.0] and
psssitively correlated with GDP[0.519] with approximate changes
89
The inflation rate has positive correlation with annual % change and no
correlation with sharp ratio
SMALLCAP50
150
100
50
0
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
-50
-100
90
FINDINGS AND SUGGESSIONS
Through the study of “VOLATILITY OF NIFTY INDICIES [Largecap50, Midcap50 & Smallcap50] & their
correlation with GDP & Inflation”. The data that is gathered from a different set of nifty indices and
preparing an internal comparative analysis in order to find the best avenues for an investor in
making an investment decision by using standard deviation, sharp ratio & correlation, I was
exposed to the following findings: -
2007
The year 2007 was a positive phase to the Indian economy in terms of GDP (9.2) and inflation
(5.14)
In the year 2007 the performance of largecap50, midcap50 and smallcap50 were better till the end
of the year. But December there is a sudden fall in the largecap50 due to the effect of global
recession raised by USA.
2008
Though many economies faced a huge impact due the recession but the impact of recession in
India was comparatively low with a inflation of 9.7 and GDP of 6.72
The year 2008 seems to be a night mare to many economies to all the economies and stock
markets where every index was prone to the impact of recession. The recession had shown a
huge impact on smallcap50 i.e. -63.6 and followed by largecap50 and midcap50
2009
All the economies were able to cope up after the effect of recession in year 2009 but India got
exposed to the highest inflation rate i.e. 14.97 and with a GDP i.e. 8.59
2009 brought a rise in Indian stock market from the effect of recession in 2008. So, 2009 showed
a huge rise in smallcap50 with a growth of annual % change i.e. 136.4% and this is thrice the profit
it experienced in previous years, followed by midcap50, largecap50 i.e. 133.2 & 76.7 respectively
2010
The economic position of India was moderately stable in terms of GDP and inflation with 8.91 &
9.47 respectively
Unlike in 2009 the indices performance is just moderate in 2010 where midcap50 performance is
just 1.5% but anyhow the largecap50 & smallcap50 survived with a sustainable rise in annual %
growth of 8. &11.9 respectively.
2011
In the year 2011 the GDP and inflation were approximately equal with 6.49 & 6.69 respectively.
91
As it is known that the smallcap50 exabits huge rise or a great fall, the same happened here in
2011 the smallcap50 indices is with a great fall of -31.5 as usual followed by midcap50 and
largecap50 i.e. -8.7&-2.5 respectively
2012
It was a huge hardship for India, where our inflation is twice of our GDP i.e. 11.17 & 4.47
respectively.
Smallcap50 and largecap50 were able to perform well in this year by maintaining their positions on
the positive side with 14.3 & 12.1 respectively, where midcap50 is with a minimum fall in annual
change of -1.0%
2013
The economic position of India in 2013 in terms of GDP and inflation is as similar as 2012, where
our inflation is twice of our GDP i.e. 9.13 & 4.74 respectively
The largecap50 was able to do better even when the economy is uneven coditions with an annual
% growth of 7.0 and followed by midcap50 with 5.9% growth, finally the smallcap50 growth was on
the negative side with -8.5%
2014
The GDP and inflation positions had recovered from the fall in the previous years, with GDP
growth rate standing above the inflation rates i.e. 7.5% & 5.86% respectively.
The effect of the economy is slightly being observed in all the three indices, where as usual the
smallcap50 is with a higher annual growth of 69.2% and further followed by midcap50 and
largecap50 i.e. 60.9 & 40.3 respectively.
2015
The economy is boosting in terms of GDP and at the same time by maintaining the inflation rate at
a particular level, the GDP & inflation stand at 8% & 5.88% respectively
The indices performance is quite opposite to the economy performance is due the external
reasons in 2015 such as rise in NPA’s & fall in crude oil price. Here largecap50 stands with the
major fall in growth % i.e. -15.9 and further followed by midcap50 and smallcap50 -11.4 & -1.9
respectively
2016
The inflation is further decreased and maintained below five percent i.e. 4.97 and the GDP growth
rate is at 7.1%. keeping the economy in a positive side
92
Due to the negative fall in previous year, this year showed a rise in the performance of indices,
where the midcap50 was with a growth of 42.1% and followed by largecap50 and smallcap50 i.e.
22.5 and 13.5.
93
Suggestions
This project is made in the perspective of an investor and for the enhancement of investor in
making better investment decisions.
But there will be no two investors with same perception where one desires to have a huge growth
in short span & prepared to take the risk and on the other side, one desires to have minimum profit
by safeguarding his capital. Therefore, the suggestions were made basing on the different indices
which were considered in the project.
On Nifty largecap50
 The largecap50 index stays stable even in uneven situations

 Though it might not show a sudden huge rise but it will safeguard the initial investments of
investor.
 The investor looking forward to make a long-term investment in will be the best avenue
because it has a huge growth potential in a long run.
 Largecap50 has comparatively less correlation with the economy [GDP & inflation], so the
impact will be comparatively less.
On Nifty midcap50
 The midcap50 is an investment platform with moderate rise and moderate fall.
 The investors who are expecting to see a rise in their investment at moderate intervals can
choose to invest in midcap50.
 The midcap50 is neither firmly stable nor highly fluctuating.
 As this is a moderate investment so it had a comparatively moderate correlation with the
GDP and Inflation. Therefore, it has a huge chance of fluctuating along with the economic
conditions.
On Nifty Smallcap50
 The smallcap50 is a continuous fluctuating index.

 This is for those investors who are expecting a huge rise and ready to digest a great fall
from the investment made by them.
 There are chances that the smallcap50 can show a comparatively higher return in a short
run. Therefore, it will be a best avenue for those investors interested in making short term
investments.
 The smallcap50 is highly correlated with [GDP & Inflation], So a sudden rise or fall in
economy will surely show an impact on smallcap50.
94
95

Astudy On Violatility of Nifty Indicies

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Introduction

Role of the Secondary Market

Difference between the Primary Market and the Secondary Market

Screen Based Trading

Place orders with the broker

An investor get access to internet based trading facility

Contract note issued by the stock broker

Name, address and SEBI Registration number of the Member broker.

maximum brokerage that a broker can charge

Trade on a recognized stock exchange only for buying/selling shares

Broker or sub broker is registered

Precautions must one take before investing in the stock markets

Do not be attracted by announcements of fantastic results/news reports, about a company. Do

Products in the Secondary Markets

Bond: is a negotiable certificate evidencing indebtedness. It is normally unsecured. A debt security is

Invest in equities in particular

Average return on Equities in India

Factors that influence the price of a stock

Acquiring equity shares

Bid and Ask price

Advantages of having a diversified portfolio

Features of debt instruments

‘Interest’ payable by a debenture or a bond

Segments in the Debt Market in India

Participants in the Debt Market

Bonds rated for their credit quality

Acquiring securities in the debt market

Exchange 2006-07 2007-08 2008-09 2009-10

Use of state-of-the-art electronic trading systems and technology;

a. The persons eligible to become trading members of Exchange are:

Membership for Different Segments at NSE

1. Wholesale Debt Market (WDM) Segment

Eligibility Criteria for Membership:

Eligibility Criteria for Membership:

1. Voluntary delisting being sought by the promoters of a company

Compulsory De-listing of Companies

Benefits of Listing on NSE

Quantity of shares of a particular security in portfolio are calculated as under:

No. of Shares of a security in portfolio =

Reverse Basket on Traded Quantity

Unfair Trade Practices

1. Daily price bands of 2% (either way) on securities as specified by the Exchange.

Face Value of a share/debenture

Different kinds of issues

A Preferential issue is an issue of shares or of convertible securities by listed companies to a select

The methodology involves in selecting three different NIFTY stock

Secondary sources: Collection of data from Internet and books

For this Project, we have used Secondary sources.

 To understand the National Stock Exchange.

 The study is completely dependent upon secondary data.

In this model, performance of a fund is evaluated on the basis of Sharpe

History of Indian Stock Market

Establishment of BSE (Bombay Stock Exchange)

Few informal groups of Stock Brokers organized themselves in 1875 and

Establishment of SEBI (Securities and Exchange Board of India)

Establishment of NSE (National Stock Exchange)

In April 1992, Bombay Stock Exchange crashed due to Harshad Mehta

List of Share Brokers in India

Top Share Brokers in India

1. ProStocks 10. Religare

2. ICICI Securities Pvt Ltd. 11. Geojit BNP Paribas

3. Sharekhan 12. Networth Stock Broking Ltd

4. Indiabulls Ventures Limited 13. Kotak Securities Ltd