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INTRODUCTION
1.1 COMPANY PROFILE

1.2 BRIEF STUDY OF EQUITY PRODUCTS

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COMPANY PROFILE

Background

Fullerton Securities and Wealth Advisors Limited were incorporated in February 2008 under
Indian Company Law. It is a subsidiary of Fullerton Financial Holdings, an Asian financial
institution with investments in banks and finance companies in emerging markets. Fullerton
Financial Holdings primarily focuses on both business banking and consumer banking. In
business banking, Fullerton Financial Holdings focuses on the commercial, small and medium
enterprises and self-employed mass market segments. It focuses on the mass affluent and
mass salaried segments in consumer banking. Fullerton Financial Holdings is a wholly owned
subsidiary of Temasek Holdings, headquartered in Singapore. Fullerton Financial Holdings
also has presence in India through Fullerton India Credit Company Limited.
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Type Financial Services

Industry Equity Broking and Wealth Management

Founded Gurgaon, India , 2008

Headquarters Orchid Center, 2nd Floor, Golf Course Road, Sector 54, Gurgaon

Key people Pallav Sinha : MD & CEO

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Products Financial Planning

Equity Broking
Demat account
Mutual Funds
Systematic Investment Plan
Bonds
Structured Products
Life and General Insurance

Services Wealth Management

Financial Planning
Equity Broking and Distribution
Portfolio Management Services
Private Equity

Employees 350

Parent Fullerton Financial Holdings

Temasek Holdings
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Website http://www.fullertonsecurities.co.in

Vision 2010
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Vivid Description of Vision By 2010, we would have

To be a distinctive financial services entity, providing the widest range of unbiased financial
solutions to customers

 Achieved through proprietary distribution network and business partners

 Top class equity research

 High quality & well-trained employees

 Consistent Service

 Cutting Edge Technology

 To provide superior financial planning and Wealth Advisory

MISSION
Create and maximize long-term shareholder value as an active investor and
shareholder of successful enterprises.
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 To work with vigor, dedication and innovation to achieve excellence in service, quality,
reliability, safety and customer care as the ultimate goal.
 To earn the trust and confidence of all stakeholders, exceeding their expectations and
make the Company a respected household name.
 To consistently achieve high growth with the highest levels of productivity.
 To be a technology driven, efficient and financially sound organization.
 To contribute towards community development and nation building.
 To be a responsible corporate citizen nurturing human values and concern for society,
the environment and above all, the people.
 To promote a work culture that fosters individual growth, team spirit and creativity to
overcome challenges and attain goals.
 To encourage ideas, talent and value systems.
 To uphold the guiding principles of trust, integrity and transparency in all aspects of
interactions and dealings

Core Values of company

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Values

We strive to achieve excellence and deliver results in a professional and responsible way
Through MERIT. These corporate values are the foundation of our culture and
Guide our day-to-day interaction with each other.

Excellence 
We are passionately committed to learning, improving and delivering outstanding results

Respect
We treat others as we would like others to treat us

Integrity 
We are honest to ourselves, our profession, our institution and our stakeholders

Teamwork &
We value each other and work together to benefit from our complementary strengths.

Trust
We foster a culture of mutual support & confidence.
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We are fair and objective in recognizing contributions and performance

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About Fullerton

Temasek holding is an Asia investment house, managing a portfolio of over U$120billion

focused on Asia, Singapore and emerging economics. Guided by an independent board,
they operate autonomously on commercial principles to maximize long term shareholder
returns.
 Rated AAA/Aaa by standard & poor’s and moody’s respectively.

 Diversified portfolio in a wide range of industries

 Telecommunication & media - sing Tel, Bharti Airtel, and Global

Crossing.
 Financial services- DBS, Standard chartered Bank, Merrill Lynch, and
Barclays.
 Real Estate - capital Land, maple tree.
 Transportation & Logistics - Singapore Airlines, Neptune Orient lines,
PSA.
 Energy & Resources - Singapore Power, Senoko Power, Powerseraya.
 Infrastructure, Industrial & Engineering - Keppel Corporation,
SembCorp Technology, Chartered Semiconductor, Status ChipPAC.

 Respectable return to shareholder over last 34 year.

 Total shareholder return of more than 16% per annum since its in
caption 35year ago.

 100% owned by ministry of finance of Singapore.

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PRODUCT SPECIFICATIONS:

We make available to you various investment options to meet your personal investment and
financial planning needs. With a Certified Investment Counselor to assist you in making your
decisions and the convenience of a One-Glance Account Statement, it’s one way to assure
that your money works the hardest for you.

It’s a One-stop shop for Direct Equity, Mutual Funds, Govt. of India Securities, Debentures and
other fixed income investment options. A thorough due-diligence process vets all investment
options before being offered to our customers, supported by comprehensive research &
analysis and regular updates on performance and ongoing analysis of investment options.
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Products and services

The products and services offered by Fullerton Securities and Wealth Advisors Limited include
equity broking, equity trading, trading products financial planning, insurance, investment
products and equity research.

Fullerton Securities and Wealth Advisors have partnered with several asset management
international and Indian mutual funds companies Following is its partner profile.

 Benchmark Mutual Fund

 Birla Sun Life Mutual Fund
 DSP Blackrock Mutual Fund
 Franklin Templeton
 HDFC Mutual Fund
 ICICI Prudential Mutual Fund
 J.P. Morgan Mutual Fund
 UTI Mutual Fund
 HSBC Mutual Fund
 SBI Mutual Fund
 Religare Mutual Fund
 Reliance Mutual Fund
 Fidelity Mutual Fund
 IDFC Mutual Fund
 Sundaram BNP Paribas Mutual Fund
 Kotak Mutual Fund
 Tata Mutual Fund
 ING Mutual Fund

Fullerton Securities and Wealth Advisors has partnered with ICICI Lombard General
Insurance [] to provide non-life insurance for home, vehicle, travel and health.
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Company Operations
The company currently has offices in North India and plans to expand its operations further.  It
has started its operations in Punjab, India. The company also plans to focus on catering to the
needs of middle income group in Punjab.

Demat account
Demat account, short term for dematerialized account is a type of banking account which
dematerialize the paper-based physical shares.

The idea of dematerialized account is to avoid the need to hold physical shares--the shares
are virtually being bought and sold through the banking account.

This account is popular in India and also the SEBI mandates Demat account for share trading
above 500 shares.

All shares, debentures, bonds are traded in DEMAT format only and one has to have a
account with a Depositary participant who deals with this paperless shares.

Fullerton Advantage

Fullerton Advantage Account fits you the best!

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At Fullerton, we believe in actively listening to you and offering you a no obligation Financial
Plan to help you meet all your financial goals. Our unique Fullerton Advantage Account saves
you time, through a one-time documentation process, so you are ready for any financial
opportunity that arises. What's more, your relationship with us starts on a highly rewarding
note.

For the first time ever, you get complimentary insurance coverage up to Rs. 5 lacks,
automatically with the Fullerton Advantage Account. This account also brings you great
savings across your favorite brands in apparel, electronics, health and entertainment! So that
while you plan for the future, you’re current desires are not ignored.

What's more, you also get ready-to-use investment, insurance & broking accounts with great
savings on account opening fees (savings of up to Rs. 1100 per year!). Take a look at the 4
variants of the Fullerton Advantage Account and simply choose the one that matches your
needs best.

Financial & lifestyle benefits worth over Rs. 69,000!s

For a relationship opening fee
of Rs. 3,999 only

Financial & lifestyle benefits worth over Rs. 33,000!

For a relationship opening fee
of Rs. 2,799 only!
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Financial & lifestyle benefits worth over Rs. 17,000!

For a relationship opening fee
of Rs. 999 only.

1) Investment (Delivery) 2) Trading (Speculation)

1) Delivery Margin: 4 times.

In this module, you can buy the shares for the Investment. Or for the Long time Position.
In this module one great facility is there if you will buy today you can sell that delivered
shares next day. But you have to Pay Delivery Brokerage= 0.5 %( Per leg). But in- case
you clear your position same day then brokerage will be trading (0.10% Per Leg).

For Example: You deposited margin Rs. 10,000/- (cash) that you will get 20,000/-
investment (Means you can take position till 20, 000/-). And as you will sell those shares
your Margin will be free for the Next Position / Next Souda.
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2) Trading (Intraday): 12 times

In this module you Can get limit for the six time of your deposited Margin fund For e.g.
In Trading you will Deposit Rs. 10,000 Your limit will get Increase 12 times (10,000*12 =
1,20,000/-) But In trading we Square off the all position at 3:10pm Whatever share price
will be at that time.

ADDITIONAL FACILITIES

1) You can transfer your fund from “Investment to Trading” Or “Trading to Investment”.

2) You can see your Contract Note and Bill Online at the End of Day (EOD).

3) In Intra-day you can see your all position and you’re pending order also.

4) You can see your all history from beginning till date as per Trade/Date/Symbol.

5) Third thing you can see your overall DP position on trading engine.

6) You can do short sale also over there in Trading A/c.

About Investment (Company):

Investment is wisely important part of financial securities one tries to money to investment
early as possible so that money will grow accordingly her life time Choosing a wise investment
often is very Crucial because a balance is require to be maintained between risk and return
involvement . For examples, many people invest in private firms which very offer very high
interests rate but they may vanish after some time loosing his invested money

Feature of Investment
1. Safety of Principle: Safety of Principle is the one of most important feature of the
investment that means we should trying to safe our investment capital through positive
balance between the Risk and Investment.
2. Adequate Liquidity and Collateral Value : Adequate Liquidity means the
investment should be liquid form that means the current capital investment in the liquid
assets so that we easily arrange the cash as per our cash requirement.
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3. Stability of Income: Stability in income means the stability of income as form of the
return invested in the investment asset by the investors. The income occur in the
regular basis and the time in which generate income is much be very long.
4. Capital Growth: Capital Growth means the increase the principle amount of the
capital and the capital appreciate of the income and capital of the investment of the
capital.
5. Tax benefit: Tax benefit means the amount invested in the tax benefit security so that
we can save the tax saving. There are several instrument available in the market so that
we can make the save of the tax.
6. Purchasing Power Stability: Purchasing power stability means the analysis of the
purchase power of man and increase the purchase power of the infesters so that the
man can investment his capital and money and increase the living of standard.
7. Increase the Standard of Living : Increase the Standard of Living means the
increase the purchase power of the investor and earn more return of his invested
amount of the capital which is invested by the investors and so that the purchase power
of the investors his increase and ultimate the increase of the standard of living.
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Risk Associated With Investment

1. Business and Financial Risk: Business risk is the type of risk in Business risk is
that portion of the unsystematic risk caused by the operating environment of the
business. Business risk arise from the inability of a firm to maintain its competitive edge
and the growth or stability of t he earning. Variation that occurs in the operating
environment is reflected on the operating income and expected dividends. The variation
in the expressed operating income indicated the business risk.

2. Interest Rate Risk: interest rate risk is the variation in the single period rates of
return caused by the fluctuations in the market interest rate . Most commonly interest
rate risk affects the price of bonds, debentures and stock. The fluctuations in the
interest rates are caused by the changed by the changes in the government monetary
policy and the changes that occur in the interest rates of treasury bills and the
government bonds.

3. Social and Regulatory Risk: Social and regulatory risk is the risk occur in the
changes of the changes in the social environment of the public environment as well as
the regulatory policy changes and the commitment in the regulatory policy means the
which policy by the Indian market regulate by the various policy and the plans which
announced by the security and exchange board of India and the government and the
Reserve bank of India.

4. Purchasing Power Risk. Variations in the returns are caused also by the loss of
purchasing power of currency. Inflation is the reason behind the loss of purchasing
power. The level of inflation proceeds faster than the increase in capital value.
Purchasing power risk is the probable loss in the purchasing power of the returns to be
received.
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INTRODUCTION OF PROJECT

Share market
(Share trading & D
mat account)

Mutual funds Insurance

1. Mutual funds growth and insurance growth depends on share market growth. If sensex
get good position in share market then u get more profit in mutual funds and insurance.

2. Share market have two types of index:

 First one is Sensex

 Second one is Nifty
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Mutual Funds
A mutual fund is simply a financial intermediary that allows a group of investors to pool their
money together with a predetermined investment objective. The mutual fund will have a fund
manager who is responsible for investing the pooled money into specific securities (usually
stocks or bonds). When we invest in a mutual fund, we are buying shares (or portions) of the
mutual fund and become a shareholder of the fund.
Mutual funds are one of the best investments ever created because they are very cost efficient
and very easy to invest in (we don't have to figure out which stocks or bonds to buy).Pooling
money together in a mutual fund, investors can purchase stocks or bonds with much lower
trading costs than if they tried to do it on their own. But the biggest advantage to mutual funds
is diversification.

KEY FEATURES (Importance) OF MUTUAL FUNDS:

 Professionally managed as it is managed by experts who decide on behalf of

shareholders on investment strategy. They had an extensive knowledge of the market
conditions and financial performance of individual companies and specific securities.

 Diversification is possible since a diversified portfolio helps reduce risk by offsetting

losses from some securities with gains in others.

 Variety of funds having different investment objectives, from conservative to aggressive,

and investing in a wide range of securities.
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THE STRUCTURE OF A MUTUAL FUND:

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Diversification is the idea of spreading out the money across many different types of
investments. When one investment is down another might be up. Choosing to diversify the
investment holdings reduces the risk tremendously.
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The most basic level of diversification is to buy multiple stocks rather than just one stock.
Mutual funds are set up to buy many stocks (even hundreds or thousands). Beyond that, we
can diversify even more by purchasing different kinds of stocks, then adding bonds, then
international, and so on.

t could take weeks to buy all these investments, but if we purchase few mutual funds we could
do it in a few hours because mutual funds automatically diversify in a predetermined category
of investments (i.e. - growth companies, low-grade corporate bonds, international small
companies).The three major types of mutual funds are as under
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1. Money Market Funds

These funds are a great place to park our money. Whether we're storing money for
emergencies, saving for the short-term, or looking for a place to store cash from the sale of an
investment, money market funds are a safe place to invest.

These funds invest in short-term debt instruments and typically produce interest rates that
double what a bank can offer in a checking account or savings account and rival the returns of
a CD (Certificate of Deposit).

2. Bond Funds

Bond funds carry more risk than money market funds are often used to produce income (useful
in retirement) or to help stabilize a portfolio (diversification). The primary types of bond funds
are:

 Municipal Bond Funds -uses tax-exempt bonds issued by state and local governments
(these funds are non-taxable).

 Corporate Bond Funds -uses the debt obligations of corporations.

 Mortgage-Backed Securities Funds - uses securities representing residential mortgages.

Another way bond funds are often classified is by maturity, or the date the borrower (whether it
be the bank, the government, a corporation or an individual) must pay back the money
borrowed. Using this classification bonds are often called short-term bonds, intermediate-term
bonds, or long-term bonds.
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3. Stock Funds

Stocks funds are considered riskier than bond funds (although certain bond funds can be very
risky) and are used for growing your money.

Money market funds and bond funds typically provide returns just a percentage or two above
inflation, but stock funds should do much better over long periods of time.
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ADVANTAGES OF MUTUAL FUNDS

It seems strange to compare mutual funds to stocks since mutual funds are primarily
composed of stocks, but it is important to distinguish the two because there are some notable
advantages to using mutual funds.
1. Get Focused
I will admit that investing in individual stocks can be fun because each company has a unique
story. However, it is important for people to focus on making money. Investing isn't a game.
Your financial future depends on where you put you hard earned dollars and it shouldn't be
taken lightly.

2. Diversification
There is no greater advantage to using mutual funds than diversification. Do you honestly
believe wealthy investors purchase just a couple of stocks? Of course not! If they are not using
mutual funds (many do), than they are purchasing a large number of stocks. Smart investors
diversify because it greatly reduces risk without sacrificing returns.

3. Professional Management
By purchasing mutual funds, you are essentially hiring a professional manager at an especially
inexpensive price. It would be a bit cocky to think that you know more than mutual fund
manager.
These managers have been around the industry for a long time and have the academic
credentials to back it up. Saying you could outperform a mutual fund manager is similar to a
football fan sitting on their couch saying "I could have made that catch" -possible, but not likely.
Even if some of us are better at picking stocks than a professional and their support staff, most
of us would not want to spend the amount of time it takes to watch, research and trade the
market on a daily basis.
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4. Efficiency
By pooling investors' monies together, mutual fund companies can take advantage of
economies of scale. With large sums of money to invest, they often trade commission-free and
have personal contacts at the brokerage firms.

5. Easy of Use
Can you imagine keeping track of a portfolio consisting of hundreds of stocks? The
bookkeeping duties involved with stocks are much more complicated than owning a mutual
fund. If you are doing your own taxes, or are short on time, this can be a big deal.

6. Liquidity
If you find yourself in need of money in a short amount of time, mutual funds are highly liquid.
Simply put in your order during the day and when the market closes a check will be sent to you
or you can have it wired to a bank account.
Stocks can be much more difficult depending on what kinds of stocks you are invested in. CD's
offer no liquidity (not without a hefty fee) and bonds can be difficult, too. Some mutual funds
also carry check writing privileges, which means you can actually write checks from the
account, similar to your checking account at the bank.

7. Cost
Mutual funds are excellent for the new investors because you can invest small amounts of
money and you can invest at regular intervals with no trading costs. Stock investing, however,
carries high transaction fees making it difficult for the small investor to make money. If an
investor wanted to put in $100 a month into stocks and the broker charged $15 per transaction,
their investment is automatically down 15 percent every time they invest. That is not a good
way to start off!

Wealthy stock investors get special treatment from brokers and wealthy bank account holders
get special treatment from the banks, but mutual funds are non-discriminatory. It doesn't matter
whether you have $50 or $500,000; you are getting the exact same manager, the same
account access and the same investment.
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8. Risk
In general, mutual funds carry much lower risk than stocks. This is primarily due to
diversification (as mentioned above). Certain mutual funds can be riskier than individual
stocks, but you have to go out of your way to find them.
With stocks, one worry is that the company you are investing in goes bankrupt. With mutual
funds, that chance is next to nil.

Life Insurance

Along with your savings and investment strategy, life insurance should be part of your long-
term financial planning.
You may not like to think about it, but your death can be costly to your loved ones. At the very
least, there will be funeral and burial costs. There may also be estate taxes and outstanding
debts to pay, such as medical expenses not covered by health insurance.
If you have dependents, they will have to cope with these costs while no longer having your
income to rely on.
The proceeds from a life insurance policy can be of tremendous value at this time. It will
provide economic assistance to your family so they can pay off the mortgage, college tuition
and other ongoing expenses and maintain their current lifestyle.
There are many choices when it comes to life insurance and over 1,500 insurance companies
to choose from, so it is important to work with a knowledgeable insurance agent or company
representative.
Many financial experts consider life insurance to be the cornerstone of sound financial
planning. It is generally a cost-effective way to provide for your loved ones after you are gone.
It can be an important tool in the following ways:
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1. Income replacement

The key economic asset for most people is their ability to earn a living. If you have
dependents, then you need to consider what would happen to them if they no longer
have your income to rely on. Proceeds from a life insurance policy can help supplement
retirement income.
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This can be especially useful if the benefits of your surviving spouse or domestic partner
will be reduced after your death.

2. Pay outstanding debts and long-term obligations

Consider life insurance so that your loved ones have the money to offset burial costs,
credit card debts and medical expenses not covered by health insurance. In addition,
life insurance can be used to pay off the mortgage, supplement retirement savings and
help pay college tuition.
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3. Estate planning

4. the proceeds of a life insurance policy can be structured to pay estate taxes so that your
heirs will not have to liquidate other assets.

5. Charitable contributions

If you have a favorite charity, you can designate some of the proceeds from your life
insurance to go to this organization.

Term

Term Insurance is the simplest form of life insurance. It provides financial protection for
a specific time, usually from one to 30 years. These policies are relatively inexpensive
and are well suited for goals, such as insurance protection during the child-raising years
or while paying off a mortgage. They provide a death benefit, but do not offer cash
savings.
Purchasing term insurance is like renting a home. It is a short-term solution. Monthly
costs are usually lower, but you will not be building equity. Just as many people rent
(while saving to buy a home),
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individuals who need insurance protection now, but have limited resources, may
purchase term coverage and then switch to permanent protection..

2. Permanent

Permanent insurance (such as universal life, variable universal life and whole life) provides
long-term financial protection. These policies include both a death benefit and, in some cases,
cash savings. Because of the savings element, premiums tend to be higher
This type of insurance is good for long-range financial goals.
Purchasing permanent insurance is like buying a home instead of renting. You are taking care
of long-term housing needs with a long-term solution.
Your monthly costs may be higher than if you rent, but your payments will build equity over
time. If you purchase permanent insurance, your premiums will pay a death benefit and may
also build cash value that can be accessed in the future.

When to consider term insurance?

If you need life insurance for a specific period of time, term insurance should be considered. It
provides insurance protection from one to 30 years and is generally the least expensive form
of life insurance. If you die during the term of the policy, your beneficiary will be paid the
amount of money specified in the policy.

If you are still alive at the end of the term, coverage stops unless the policy is renewed. Unlike
permanent insurance, you will not build equity in the form of cash savings.

Term insurance can be a useful financial tool for:

 Those who need a large amount of life insurance, but have a limited budget, such as a
young couple, with children.

 Covering debts that will disappear in time, such as a mortgage or car loan.

 Business owners who want to cover the life of a key employee for a specific number of
years.
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Keep in mind that premiums are lowest when you are young and increase upon renewal as
you age. Some term insurance policies can be renewed when the policy ends, but the
premium will generally increase. Many policies require a medical examination at renewal to
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qualify for the lowest rates. Before deciding on a policy from a specific company, find out what
their requirements are. Also, see if you would be able to convert the term policy to a
permanent policy later

What are the different types of term insurance policies?

1. Renewable Term Insurance

This policy allows you to renew coverage at the end of the term without having to submit
medical information.

The company renews your policy even if your health has deteriorated. However, the premium
rate will usually rise with each renewal.
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2. Convertible Term Insurance

You can convert your term coverage into a permanent policy without providing evidence of
insurability (usually a medical exam). Premiums for convertible policies are usually higher than
for nonconvertible policies. Once converted, the premiums for the permanent coverage will be
higher than those you are currently paying for the term policy for the same death benefit.
However, the premiums for the permanent policy will now remain the same while the term
premiums will continue to rise on renewal.

1. Level Term Insurance

These policies provide a fixed premium for a certain number of years, usually 10 or 20
years, while the death benefit remains unchanged.

Indian Stock Market Overview

The Bombay Stock Exchange (BSE) and the National Stock Exchange of India Ltd (NSE) are
the two primary exchanges in India. In India, in addition, there are 22 Regional Stock
Exchange. However, the BSE and NSE have established themselves as the two leading
exchanges and account for about 80 percent of the equity volume traded in India.
The average daily turnover at the exchanges has increased from Rs 851 crore in 1997-98 to
Rs 1,284 crore in 1998-99 and further to Rs 2,273 crore in 1999-2000 (April-August 1999).
NSE has around 1500 shares listed with a total market capitalization of around Rs9, 21,500
crore (Rs 9215-bln).
The BSE has over 6000 stocks listed and has a market capitalization of around Rs 9,68,000
crore (Rs 9680-bln). Both exchanges have a different settlement cycle, which allows investors
to shift their positions on the bourses.
The primary index of BSE is BSE Sensex comprising 30 stocks. NSE has the S&P NSE50
Index (Nifty), which consist of fifty stocks. Both the exchanges have switched over from the
open outcry trading system to a fully automated computerized mode of trading known as BOLT
(BSE on Line Trading) and NEAT (National Exchange Automated Trading) System.
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It facilitates more efficient processing, automatic order matching, faster execution of trades
and transparency. The scrips traded on the BSE have been classified into ‘A’, ‘B1’, ‘B2’, ‘C’,
‘F’, and ‘Z’ groups.
The ‘A’ group shares represent those, which are in the carry forward system (Badla). The ‘F’
group represents the debt market(fixed income securities) segments. The ‘Z’ group scrips are
the blacklisted companies. The ‘C’ group covers the odd lot securities in ‘A’, ‘B1’ & ‘B2’ groups
and right renunciations.
The key regulator governing Stock Exchanges, Brokers, Depositories, Depository participants,
Mutual Funds, FII and other participants in Indian secondary and primary market is the
Securities and Exchange Board of India (SEBI) Ltd.
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Working of the stock Market

A person desirous of buying/selling shares in the market has to first place his order with a
broker. When the buy order of the shares is communicated to the broker he routes the order
through his system to the exchange.
The order stays in the queue exchange’s systems and gets executed when the order logs on
to the system within buy limit that has been specified. The shares purchased will be sent to the
purchase by the broker either in physical or demat format.

Rolling Settlement Cycle

In a rolling settlement, each trading day is considered as a trading period and trades executed
during the day are settled based on the net obligations for the day. At NSE and BSE, trades in
rolling settlement are settled on a T+2 basis i.e. on the 2 nd working day. Typically trades taking
place on the Monday are settled on the Wednesday, Tuesday’s trades settled on Thursday
and so on.
Primary Markets
Securities available for the first time are offered through the primary securities markets. The
issuer may be a brand-new company or one that has been in business for many, many years,
like that of MARUTI. The securities offered may be a new type for the issuer or additional
amounts of a security used frequently in past. The key is that these securities absorb new
funds for the coffers of the issuer.

Secondary Markets
Once investors have purchased new issues, they change hands in the secondary markets.
There are actually two broad segments of the secondary markets the organized exchanges
and the over-the-customer (OTC) market. The primary middlemen in the secondary market are
brokers and dealers. Broker act as an agent while dealer as a principal in a transaction.
Organized stages are physical market place where the agent of buyers and sellers operate
through the auction process.
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Depository
The organization responsible to maintain investor’s securities in the electronic from is called
the depository. In other words, a depository can therefore be conceived of as a “Bank” for
securities. In India there are two such organizations viz. NSDL and CDSL.The depository
concept is similar to the banking system with the expectation that bank handle funds whereas
a depository handles securities of the investors.
An investor wishing to utilize the services offered by a depository has to open an account with
the depository through a depository participant. Depository participant: the market
intermediaries through whom the depository services can be availed by the investors are
called a Depository Participant (DP).
 35

Indian online share trading

Realizing there is untapped market of investors who want to be able to execute their own
trades when it suits them, brokers have taken their trading rooms to the Internet known as
online brokers, they allow you to buy and sell shares via Internet. There are 2 types of online
trading service:

1. Discount brokers

Discount online brokers allow you to trade via Internet at reduced rates. Some provide quality
research, other don’t.

2. Full service online

Full service online brokerage is linked to existing brokerages. These brokers allow their clients
to place online orders with the option of talking/ chatting to brokers if advice is needed.
Brokerage rates here are higher. 5Paisa.com, ICICIDirect.com, IFullerton.com,
Sharekhan.com, Geojit securities.com, HDFCsec.com, Tatatdw.com, Kotakstreet.com are
some of the online broking sites in India.
 36

Factors investors keep in mind while selecting online brokers in India

1. Brokerage cost

It is important to weigh up the subscription and trading costs charged by an online broker
against benefits offered by the site. All online brokers display their charges on their sites.
Some make sure you find the charges easily, while with others you will have to search a bit.

2. Security

Please make sure site has 128-bit encryption to ensure safety of transaction online. You
normally get a secured Login id and password. It is always advisable to frequently change
trading password. Ideally online trading site should be fully integrated. The greater the
backward integration, the better it is for the customer. Ideally broking account, Demat account
and bank account should be linked electronically.

3. Rate refresh

Rate refresh has to be real-time with no time lag. The speed and reliability comes with huge
investment in technology. It is always advisable to check rates of online broking sites with
BSE/ NSE terminal rates.

4. Speed of execution

System has to be fast and reliable that doe’s just one job- executes your trades. The last thing
you need is a site that is heavily congested with the users who are downloading heavy jpeg
graphs or pulling the latest story why market is moving.

5. Trading Exposure

For trading, all sites provide 4 times buy and sell limit against margin money put in by
customer. For delivery of shares, buying limit is equal to margin money put in by customer.
Couple of sites also provides margin funding for buying of shares.
 s
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ft
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x
6. Free trial period

Site should allow users free trial period to familiarize yourself with system before you decide to
become trading member of the site.

7. Intraday chart/ historical chart

The site should provide intraday chart tick-by-tick time and price data / historical chart for
technical analysis by investors of particular scrip. Lot of people trade based on charting
packages.Before you can trade, you need to open an account and register as a trader as with
online broking site. This involves filling up trading account form, Demat account form and for
faster transfer of money- Internet enabled bank account. Please read terms and condition of
each site before commencing to deal with them. As per SEBI rule, Photo id proof and current
address proof is a must for opening trading account. .Online share dealing on the Internet is
now a way of life for thousands of investors. 80% of South Korea and 30%-40% US trade are
executed online. If you want to deal in shares, thereto deal in shares, there is no easier way.

Sensex and Nifty

Re: What is Sensex? What is Nifty? Difference between these two

Answer SENSEX IS THE INDEX OF BSE.
# 2 AND NIFTY IS THE INDEX OF NSE.
BOTH WILL SHOW DAILY TRADING MARKS
37
 38

BSE means Bombay Stock Exchange and NSE means National Stock Exchange Sensex is

index of BSE and Nifty is index of NSE Sensex comprise 30 top listed ...
BSE=BOMBAY STOCK EXCHANGE
NSE=NATIONAL STOCK 
NIFTY=The Standard & Poor's CRISIL NSE Index 50 or S&P CNX Nifty nicknamed Nifty 50
or simply Nifty, is the leading index for large companies on the National Stock Exchange of
India. The Nifty is a well diversified 50 stock index accounting for 21 sectors of the economy.
It is used for a variety of purposes such as benchmarking fund portfolios, index based
derivatives and index funds.
SEBI is securities and exchange board of India the regulatory authority for stock
exchanges. It regulates the stock exchanges operation just like RBI regulates banks.
Sensex is the Bombay stock exchange index comprising of 30 top shares from various
industries and movement of the same shows the trend of the stock market whether up or
down. The counterpart of Sensex in national stock exchange is nifty which comprises of 50
stocks. The composition of the sensex and nifty changes from time to time.
Sensex and Nifty are the two important indices that track the Indian equity market. There are
however many differences in their construction and behavior. Investors must choose one
between the two to benchmark their portfolios. It is sometimes seen that these indices move
with a low correlation to each other, that is to say that they are not moving together.

An index is used to give information about the price movements of products in the financial,
Commodities or any other market. A stock index is created to provide investors with
information regarding the average share price in the stock market.

Generally the stock price of any company is vulnerable to three types of news:
 

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C
.
t
s
u
d
n
o
ifi
c
e
p
S
1
y
I
E
a
k
Functions of an index:
The main objective is to give all market participants an indicator of the general movement of
the stock.
The primary function of a stock index is to serve as a barometer of the equity market.
The ups and down in the index represents the movement of the equity market.
Investors can have a clear picture on equity market.
Secondly, stock market indices are lead indicators of the performance of the overall
economy. Similarly, sectoral index serves as a lead indicator of the performance of that
particular sector.
Perhaps, the most important use of an equity market index is as a benchmark for a
portfolio of stocks. The systematic risk of one’s portfolio can also be measured by
comparing it to the index.
39

Finally, indices are useful in modern financial applications of derivatives. Indices serve
as the underlying for Future & Options products. In the Indian market, both Sensex and
Nifty are underlying for Futures and Options contracts.

Trading are two types:-

 40

1. Margin Trading

Margin Trading is nothing but borrowing money to invest in stocks, Here the investor borrows
money from his/her broker to invest in stocks through the same broker. The “margin” here is
the money actually borrowed from the broker.

The margin loan can be up to 50% of the total amount invested. This effectively means that
you can invest in shares worth Rs 100 by borrowing Rs 50 from your broker. This is called
buying shares on a 50% margin. If the value of the shares goes down,

The investor has to pay a “maintenance margin” to bring the margin up to 40% of the market
value of the shares. This margin is paid when the broker makes a “margin call” to the investor,
and investor has to pay the difference between current margin and maintenance margin to
take it to 40%. If the margin falls below 30%, the broker has the discretion of liquidating the
client’s holdings and thus recovering the loan advanced.

Risks
in Margin Trading:
 41

 You can lose more money that you have invested

 You may have to deposit additional cash or securities in your account on short notice to
cover market losses;

You may be forced to sell some or all your securities when falling stock prices reduce the
value of your securities

 Your brokerage firm may sell some or all of your securities without consulting you to pay
off the loan it made to you.
Benefits of Margin Trading:
I. The main benefit of Margin Trading for the investors is that it serves as an avenue
for the investor who wants to buy more shares than the cash available
II. .The investor leverages the transaction and aim to make more money on the
investment than the interest payable on the margin loan.
III. it can be very effective tool in the hands of the experienced and heavy trades, who
can invest up to double his investible sum in the hope to earn high profits.
IV. Trading on Margin improves liquidity in the market. With lesser amounts of cash
with investors, they can assume higher risk and can invest in higher value of
stocks

V. The Official and structured market for Margin Trading will most likely lead to an
expansion of day trading activity in the market..

2. Online Trading
Investors can have complete control of their stock investing actions, now that they have the
convenience of buying and selling shares on the NSE online and in real time. Each individual
has access to the latest information and tools to analyses any stock investment decision. Plus
the power to execute the sale or purchase right before them on their personal computer
screen.

Advantages of online trading:

 42

 The convenience of desktop investment-trade from anywhere at any time.

 Not just online but real time-from placing an order to having it executed-in a few seconds.
 Continuous feedback of all transactions orders and their status.
 three level security via Firewalls, data encryption using Secure Socket Layer (SSI)
technology, User IDs and Passwords i.e your personal information remains for your eyes
only.
 Online access to a wealth of live information that can facilitate better investment decisions.

Corporate Offer

Sno Parameters Competitors offer Fullerton Offer

1 Facilities Only offline or online Both
2 A/c Opening charges Rs 250+ or 750 Rs 999/-
3 Annual Maintenance Rs 250+ Rs 30/-
charges
4 Brokerage-Intraday 0.15% 0.05s(negotiable)
5 Delivery 0.75% 0.50(negotiable)
6 Min Charges Rs 10 to Rs 25 1 Paisa
7 Margin-Intraday Generally 6 to 10 times 8 times
8 Delivery No carry forward 4 times
9 Equity analysis Do not have Updated analysis
of 200 companies.
10 Technical charts Do not provide Provided on trade
terminal
11 Transparency Not so transparency Everything
provided online

Competitive Analysis:

Parameters Icicidirec Investsmar 5paisa Omkotak Share

t t khan
 43

Opening fee
Trade Rs 750 Rs 670 Rs Rs 500 Rs 500

Demat Nil 270 425 Nil Nil

Nil
Brokerage (%)
Delivery 0.75 0.75 0.25 0.25 0.25
Square Off 0.15 0.25 0.05 0.10 0.10
Interface
Banking Icici Hdfc Citibank* Hdfc**
Demat Icici Hdfc IIT Kotak SSkI

IL&FS corp securities

 44

OBJECTIVES
OF

THE STUDY

Objective of this study is to find out Fullerton Securities services for, Demat account, Equity
market, and Derivative market. Project is sub-divided into the following objectives:
 45

 To find the competition of equity market especially in NSE trading and bring out the
awareness level of the investors who are trading with National Stock Exchange.

 To find the advantages of the Demat account and charges by various depository
participants.

 To study the trading procedure of Fullerton Securities and comparison of the broking
firms.

 To find the cost saving analysis on the brokerage charges by the Fullerton Securities on
the share and derivative trading with the other broking firms.

 Positioning of Fullerton in Jaipur.

 Suggestions and perceptions about Fullerton.

 46

RESEARCH
METHODOLOGY
 47

RESEARCH METHODOLOGY

Methodology in the applied sense refers to various methods used by the researcher right
from data collection and various techniques used for the same for interpretation and
inference. Methods and techniques are often used synonymously in research literature.

Research methodology is what must be done, how it will be done, what data will be needed,
what data gathering will be employed, how sources of data will be selected and how the data
will be analyzed and conclusions reached.

When we talk of research methodology we not only talk of the research methods but also
consider the logic behind the methods we use in the context of our research study and
explain why we are using a particular method or technique and why we are not using others
so that research results are capable of being evaluated either by the researcher himself or by
others.
 48

IMPORTANCE OF THE RESEARCH

Significance of research and research leads to invention. Following facts highlight the
importance of the research.

(1) Research facilitates logical or scientific thinking process which leads towards
flow less strategy formulation.

(2) It facilitates identification of ‘trends’ which ultimately responsible in marketing

opportunities.

(3) Decision making becomes easier for well researched phenomenon.

(4) Research is important in solving various operational and planning problems of

business and industry.

(5) It helps understanding perception of the employees about the training and
accordingly designs the training process.
 49

Major Data Collection methods

I. Secondary Research
a) Internal secondary data
b) External secondary data
Data from the company itself which the
company already has.
Data from the magazines and news
papers,

II. Survey Research

a)Telephone interviews Collection of information from
respondents via telephone
b) Mail interviews Collection of information from
respondents via mail or similar techniques
c) Personal interviews Collection of information in a face-to-face
situation.
 Home interviews Personal interviews in the respondent’s
 Intercept interviews home or office
Personal interviews in a central location,
generally a shopping mall
III. Field experiments Manipulation of the independent
variable(s) in a natural situation.

Universe
 50

 ALL TYPE OF INVESTORS

Investor is a person who invests money to earn profit or interest on the investment, it can in the
form of deposits, lending in the form of loans or investing.

Population

 ALL INVESTORS DEALING IN SHARE MARKET (PRIMARY\SECONDARY) OR

DERIVATIVES

Securities available for the first time are offered through the primary securities markets.

The issuer may be a brand-new company or one that has been in business for long time, like
that of maruti. The securities offered may be a new type for the issuer or additional amounts of
a security used frequently in past. The key is that these securities absorb

Information Source:
Investors from Various firms, Relationship managers, Internet, magazines, Brokers & Sub-
brokers in Jaipur, Telecalling references generated from respondents interviewed.

Sample size
 51

BROKERS AND SUB BROKERS IN JAIPUR

Share brokers and sub-brokers (including on-line line & off-line brokers)
On-line broking firms: Kotakstreet.com, 5Paisa.com, ICICI Direct.com, Sharekhan.
Off-line broking firms: Anand Rathi, H.C.Jain & Co., Hem Securities, Eureka Securities, Alankit
Assignments and others.

SHARE TRADERS
500 share investors dealing in either primary or secondary market.

Sampling

Simple random sampling technique used to get an unbiased overview.

Data Type Primary Data And Secondary Data

Data Collection Technique Personal Interview
Data Collection Tools Schedule, Journals, IFullerton.com
Other books and websites

Analysis of data:
Data analysis is done with the help of bar charts; pie charts, tables and certain mathematical
tools are also applied to derive the results.

TYPES OF RESEARCH
 52

There are many types of the research like descriptive, analytical, basic, applied, qualitative,
quantitative, and conceptual. I have chosen the field of Anchor Mall, Fullerton Securities.

Descriptive Research:
In this type of research I have collected data by observation, by mailing to the companies or
to the key decision maker, by going to the company with the appointment with the key
decision maker and ask employees about training produres in the Fullerton Securities.

Analytical Research:
I also have collected data from already available information. I got the information from the
newspapers with the help of that information (phone no.) I used to take appointment with the
concerned person and. In this research correlation technique is used to analyze the data.

Basic or Pure Research:

Visiting to the company to company I have got many people who are not satisfied with the
services of .This enhance my ability of dealing with the people and make them satisfied.

Applied Research:
The research which has immediate commercial potential is called applied research. Applied
research can further be classified as problem oriented and problem solving research.

Problem Oriented Research –

During the research I have met with many people who are having many problems regarding
the connections, poor network, poor services and many other problems. Most of the
customers are saying about the document procedure they have big problem with the
collection of the formalities so that makes the satisfaction level of the customers down.

Problem solving Research –

 53

Fullerton Securities is facing the main problem about the charge of broking
because there is no collection centre near by the area which I have visited that is why the
company is not getting good business from the particular area.

Quantitative Research:
I have visited about 350 companies and I have got different result from them 80% of the
people listened to me, 20% of the people did not listen me, the sales results were very low.
 54

ANALYSIS AND
DATA
INTERPRETATION
 55

PREFERENCE OF AN INDIVIDUAL FOR INVESTMENT:

Objective: To know where the individual would like to invest his money.

Investment preference

24%
22%

18%
16%

12%

8%

0%
Fixed Nsc Shares Mutual Properties Insurance Others
Deposit fund

CONCLUSION:
 56

Through the above data, we come to know that the maximum respondent opted for Fix

Deposits (FD’S) in banks for safe and guaranteed return. Secondly, they choose insurance

for securing life. Mutual Funds get 5th preference facing more competition with shares and

properties.

PRIORITY OF INVESTMENT:

Objective: To know the basic USP of the product

Investment priority
70%

60% 64%

50%

40%

30%

20%

10% 14% 12%

0% 2%
tax benefit good return liquidity cost

CONCLUSION:
 57

According to the above data:

Maximum no of individuals prefer good returns.

Tax benefit is the second priority of investment.

Liquidity of investment is ranked the last.

CONCERN FOR INVESTMENT:

Objective: To know through which source the individual manages its portfolio.

Investment concern

34%
32%
26%

8%

0%
Self Agent Friend Broking Others
company

CONCLUSION:

From the above data, it can be derived that:

Most of individual take help of an agent/distributor/broker for their financial investment.

Second best response goes for self decision making in this regard.

Friend’s recommendation is the third choice to make investment.

 58

AWARENESS LEVEL OF MUTUAL FUND COMPANIES:

Objective: To know the awareness level of individuals about the Mutual Fund companies.

Awareness of Mutual Fund Companies

22% 22%
16%
12%
10% 10%
8%

d d d d d d ly
Fun Fun Fun Fun Fun Fun tive
l l l l l l lec
ua ua ua ua ua ua ol
ut ut ut ut ut ut C
M M M M M M s
ce rla ata SBI FC ICI her
n i C t
lia B T HD I O
Re

CONCLUSION:

It can be concluded that:

Majority of people are aware of the Reliance Mutual Fund i.e., 22%.
The same no of individuals are aware of other international players such as DSP Merrill Lynch,
Franklin Templeton, Fidelity, etc.

SOURCE OF INFORMATION:
Objective: To know which source of information inspires the investor, the most.
 59

Source of information

48%

24%
21%

7%

friend agent advertisement others

CONCLUSION:

From the above data, it can be judged that:

Advertising played a very important role in getting information. Hence, maximum credit to
media for spreading awareness.
Agents and friends play a secondary, but an important role.

PREFERRED INVESTMENT MODE:

Objective: To determine the most preferred mode of investment.

 60

Preferred mode of invesment

60% Monthly ; 56%

50%

40%

30%

20% Half-yearly; 18%

Onetime; 14%
10% Quarterly; 8%
Yearly; 4%
0%
Monthly Quarterly Half-yearly Yearly Onetime

CONCLUSION:

According to above information, it can be analyzed that:

Most of the individuals prefer monthly investment.

Their second preference is for the quarterly mode.

A considerable portion of the respondents prefer one time investment.

REASONS FOR NOT INVESTING IN MUTUAL FUNDS:

Objective: To judge the basic retarding factor of public investment in mutual funds.
 61

Reasons for not investing in mutual funds

80%
70%
60%
50%
40%
30%
20%
10%
0%
risk lack of low return lack of trust others
uncertainity knowledge

CONCLUSION:
According to above information, it can be analyzed that:
Most of the individuals are not investing in mutual funds, the major reason being lack of

appropriate knowledge.

Fear of uncertainty, Low return and Lack of trust are also considerable factors.
 62

CONCLUSIONS
AND
SUGGESTIONS
 63

Conclusions

Over all Fullerton is providing better deal to investors in Jaipur city and the products of
Fullerton are updated, monthly wise for customer’s convenience. There are no hidden costs
charged from investors till today.

The Turnover of the company is high (40 crore) and acted as one of the largest retail financing
company (33% market share) and the company is providing convenience of buying and selling
shares on NSE online.

This report that follows, analyzes all the sides of the issue and takes a more objective
approach to one of the most important decisions many people make during their life time –
how to invest their money appropriately, and build up the funds they will depend on it when
they retire and those funds are also used to build wealth across time.

On the basis of the analysis of data collected, it has been found that investor preferred to
invest in mutual funds mainly because of good return, high liquidity, tax benefit and
maintaining a growth in their wealth.
 64

Suggestion:

The Project was an interesting one and was a grand success as the objective of the study was
rightly achieved.
Complete work was done under proper guidance and instructions.
It is suggested that more in-depth study can be done if the guide suggest, it can hence help
the Company as well as the Trainees.

 Interest rate on Funds Provided to investors on margin trading have to be reduced

From the survey conducted, I found that interest rate on funds provided to investors is
more than other competitive firms. so company should take care of this issue and try
to have solution on this aspect which I felt more important.

 Brokerage rate on trading have to be reduced. Even this one of the major factor that
has to be taken care of, because competitors are providing lesser brokerage both
Intraday and Delivery trading which satisfies customer who are investing and trading
frequently.

 Tapping the high income groups Company should focus on High-income groups and
Level to be maintained. They can better profit to the company and can increase the
turnover of the company.
 65

ANNEXURE
 66

QUESTIONNAIRE

Name:
Designation:
Company:
Date:

1. Do you have D-MAT account?

(a) Yes (b) No
2. If not, are you interested in TRADING?
(a) Yes (b) No
3. Are you aware of the Fullerton Securities?
(a) Yes ( b) No

If yes, then in which scheme of Fullerton Securities have you invested?

(a)…………… (b)……………. (c)……..….

4. Are you satisfied with the services being offered by the company?
(a) Yes (b) No
5. Any suggestions would you like to give for improvement ?
(a)…………….
(b)…………….
 67

BIBLIOGRAPHY

BOOKS PREFERRED:

M. Y. KHAN , P.K..JAIN,FIFTH EDITION,TATA Mc Graw-Hill,2008

M. R. AGARWAL, GARIMA PUBLICATIONS, 2009

NEWS PAPERS:

THE ECONOMIC TIMES

THE TIMES OF INDIA

WEBSITES:

www.google.com

www.altavista.comhttp://www.fullertonsecurities.co.in