1. Ntroduction To The Study: Executive Summary I Had The

1. NTRODUCTION TO THE STUDY: EXECUTIVE SUMMARY I had the opportunity to take summer project at IL&FS Investsmart Securities Ltd. Belgaum. The training was from 1st May to 12th July 2009. During the training I had the privilege of being guided by Mr. Badrish MN Branch Incharge and Mr. Kapil Nagaich Associate Sales Manager. The main objectives of this training are to study about the equity market, to understand the concept of equity shares, derivatives market, mutual fund, trading and investment of equity shares in the secondary market. The essential information of this project has been collected by both primary data and secondary sources of data. This project report includes the overview of the company profile, stock market, secondary market, equity trading, comparative analysis of the stock brokers, findings and suggestions. TITLE OF THE PROJECT “Perception of investors about equity trading” NEED FOR THE STUDY •

This study is important to understand Equity Trading in Secondary Market with respect to individual and individual in a group like age, education and social class.

SCOPE OF THE STUDY •

The study covers to understand the Equity Trading in Secondary Market in Belgaum (Karnataka, India).

1 MATS SCHOOL OF BUSINESS, BELGAUM

OBJECTIVES OF THE STUDY •

To study the equity share trading in secondary market.

•

To find whether investment in equities is better than other investment.

STATEMENT OF THE PROBLEM •

This project is mainly focused on “Equity Trading in Secondary Market”.

RESEARCH METHODOLOGY Research design The research design used for the study was exploratory in nature, so as to identify and explore the people perception level towards equity share trading in secondary market. Sampling Design Sample size: The sample size is selected 100 respondents. Research tool: questionnaire – closed ended questions.

2 MATS SCHOOL OF BUSINESS, BELGAUM

Sources of data Data collected for this project study is inclusive of both primary as well as secondary data. Primary data: The primary data for this study has been gathered with the help of a well structured questionnaire and also with the help of personal interview. Secondary data: Secondary data source was used for getting information that is books were used are. Research Methodology (C.R Kothari) Portfolio Analysis and Management (Prasanna Chandra) Dalal Street (magazine)

3 MATS SCHOOL OF BUSINESS, BELGAUM

2. INDUSTRY PROFILE Introduction Stock market is an organized is a set-up with a regulatory body and the members who trade in shares are registered with the stock market and regulatory body SEBI. It is a place where securities are bought and sold. It is exposed to a high volatility, price fluctuates within minutes and determined by the demand and supply of stocks at a given time. Stock brokers are the ones who buy and sell securities on behalf of individuals and institutions for some commission. The Securities Exchange Board of India (SEBI) is the authorized body which regulates the operations of stock exchange, banks and other financial institutions. The past performances in the capital markets especially the securities scam by Ketan Parekh and Harshal Mehta has led to tightening of the operations by SEBI. In addition the International Trading and investment exposure has made it imperative to better operational efficiency. History of Indian Stock Market The history of Indian Stock Market is about 200 years old. Prior to this the hundis and bills of exchange were in use, especially in the medieval period, which can be considered as a form of virtual stock trading but it was certainly not an organized stock trading. The recorded stock trading can be traced only after the arrival of East India Company. The first organized stock market that was governed by the rules and regulations came into the existence in the form of the Native share and Stock Broker’s Association in 1875. After gone through numerous changes this association is today better as Bombay Stock Exchange, which remains the premier stock exchange since its inception. During this period other exchanges were launched and some of which were closed also. Presently, there are 19 recognized stock exchanges out of which four are National level exchanges and the remaining are regional exchange. National Stock Exchange, established in 1992, was the last exchange. Although the regional level exchanges are in existence the volume of trading in these exchanges is negligible. National Stock Exchange and Bombay Stock Exchange are the leaders of Indian Securities Market in terms of listing, trading and volumes. The last 15 years of the Indian Securities Market can be consider as the most important part of the history where the market gone through the post liberalization era of Indian economy and witnessed the formation of Securities and Exchange Board of India (SEBI) which brought substantial transparency in share market practices and thus managed to bring in trust of not only domestic investors but also the International ones.

4 MATS SCHOOL OF BUSINESS, BELGAUM

What is a Stock Exchange? “Stock exchange means, anybody or individuals whether incorporated or not, constituted for the purpose of assisting, regulating or controlling the business of buying, selling or dealing in Securities”. It is an association of member brokers for the purpose of self regulation and protecting the interests of its members. It can operate only if the Government under securities contracts recognizes it regulation act, 1956. The recognition is granted under section of the act by the Central Government, ministry of finance. The traditional structure of the stock exchange in India? There are 22 recognized stock exchanges in India. Mangalore stock exchange was refused renewal of recognition vide SEBI order dated August 31, 2004. In terms of legal structure, the stock stock exchanges in India could be segregated into two broad groups- 19 stock exchanges which were set up as companies, either limited by guarantees or by shares, and the 3 stock exchanges which were association of persons (AOP) viz. BSE, ASE, and Madhya Pradesh Stock Exchange. The 19 stock exchanges which have been functioning as companies include, the stock exchanges of Bangalore, Bhubaneswar, Calcutta, Cochin, Coimbatore, Delhi, Gauhati, Hyderabad, Interconnected Se, Jaipur, Ludhiana, Madras, Magadha, NSE, Pune, OTCEI, Saurashtra-Kutch, Uttar Pradesh, and Vadodhara. Apart from NSE, all stock exchanges whether established as corporate bodies or Association of Persons (AOP), were non profit organizations. At present, there are 21 stock exchanges recognized under the securities contract regulation act, 1956. They are located at Bombay, Calcutta, Madras, BOMBAY STOCK EXCHANGE Of the 22 stock exchanges in the country, Bombay Stock Exchange (BSE) is the largest, with over 6000 stock listed. The BSE accounts for over two thirds of the total trading volume in the country. Established in the year 1875, the BSE exchange is also the oldest in Asia. Among the 22 Stock Exchanges recognized by the Government of India under the securities contracts (regulation) Act, 1956 it was the first one to be recognized and it is the only one that had the privileges of getting permanent recognition ab-intio. Approximately 70,000 deals are executed on a daily bases, giving it one of the highest per hour of trading in the World. There are around 3500 companies in the Country, which are listed and have a serious trading volume. The market capitalization of the BSE is Rs. 5 trillion. The Sensex is widely used market index for the BSE.

5 MATS SCHOOL OF BUSINESS, BELGAUM

The main aims and objective of the BSE are to provide a market place for the purchase and sale of security evidencing the ownership of business property or of a public or business debt. It aims to promote, develop and maintain a well regulated market for dealing in securities and to safeguard the interest of members and the investing public having dealings on the exchange. It helps industrial development of the Country through efficient resources mobilization. To establish and promote honorable and just practices in securities transaction. NATIONAL STOCK EXCHANGE The National Stock Exchange (NSE), located in Bombay, is India’s first debt market. It was set up in 1993 to encourage stock reform through system modernization and competition. It opened for trading in mid 1994. it was recently accorded recognition as a stock exchange by the Department of Company Affairs. The instruments traded are Treasury Bills, Government Securities and Bonds issued by public sector companies. The number of members trading on the exchange has been on steady increase, helping integrate the National Market and providing a modern system with a complete audit trail of all transactions. NSE started trading in the equity segment on Nov 3, 1994 and within a short span of 1 year became the largest exchange in Indian volumes transaction. Trading volumes in the equity segment have grown rapidly with average daily turnover increasing from Rs.17 crores during 1994-95 to Rs.14, 148 crores during FY 2007-08. During the year 2007-08, NSE reported a turnover of Rs.35, 51,038 crores in the equities segment.

6 MATS SCHOOL OF BUSINESS, BELGAUM

3 COMPANY PROFILE IL&FS Investsmart Limited (IIL) is one of India’s leading financial services organizations providing varied range of services for Corporate as well as Individual customers. IIL has a strong presence across wide rang of products and operates in the areas of Investment Management and Advisory services, Equity and Debt broking, Commodity broking, Distribution of financial products, Merchant banking, Securities financing and related activities, IPO, and Depository services. IIL provides various services through its wholly subsidiaries as below: 1. IL&FS Investsmart Securities Limited (IISL) 2. IL&FS Investsmart Commodities Limited (IICL) 3. IL&FS Investsmart Insurance and Risk Management Services Limited (IIIRMSL) 4. IL&FS Academy for Insurance & Finance Limited (IAIFL) 5. IL&FS Investsmrt Asia Pacific Private Limited (IIAPPL) Products Offerings of IL&FS Investsmart Group • • • • •

Retail Business Wholesale Business Institutional Equity Business Division Merchant Banking Division Debt Broking Division Promoters and Shareholders of IL&FS Investsmart Limited

Management The company is, currently managed by a Board Of Directors comprising 11 Directors. Mr. Ravi Partasarathy is currently the Chairman and Mr. Hemang Raja is the Managing Director and CEO of the Company. Mr. Ravi Partasarathy, Chairman has experience in infrastructure, banking and finance services sector for over three decades. Mr. Hemang Raja, Managing Director and CEO, has more than Twenty years of experience. His core competencies in financial services industry encompasses the functions of accounts, finance, project relted exposure, all Indi marketing and investment banking. Mr. R.C.Bava, Dy. Managing Director has more than 2 decades of experience in the Indian banking sector, with an intimate knowledge of the banking sector.

7 MATS SCHOOL OF BUSINESS, BELGAUM

Vision, Mission and corporate action Vision statement To become the preferred long term financial partner to a wide base of customers whilst optimizing stakeholders value !

Mission statement To establish a base of 1 million satisfied customers by 2010. We will create this by being a responsible and trustworthy partner !

Corporate action An Approach to Business that reflects Responsibility, Transparency and Ethical Behaviour. Respect for Employees, Clients & Stakeholder groups.

8 MATS SCHOOL OF BUSINESS, BELGAUM

HSBC ACQUIRES 93.86 PER CENT OF IL&FS INVESTSMART IN INDIA *** A controlling interest in one of India's leading retail brokerages * * *** Gains foothold in a market with 20 million retail investors **** HSBC has completed the acquisition of 93.86 per cent of IL&FS Investsmart Limited (Investsmart), a leading retail brokerage in India, for a total consideration of INR1, 311.0 crore (approximately US$296.4 million). Sandy Flockhart, Group Managing Director and Chief Executive Officer of HSBC AsiaPacific, said: "Investsmart gives HSBC access to the world's third-largest investor base, with over 20 million retail investors. In fact, the business already has 143,000 customers and operates in 128 cities. With Indian GDP expected to grow by 7.8 per cent in 2009, the Opportunity here is obvious and underlines why HSBC has a stated strategic aim of focusing on high-growth economies." Under the transaction agreement, HSBC acquired 43.85 per cent of Investsmart from E*TRADE Mauritius Limited, an indirectly wholly-owned subsidiary of E*TRADE Financial Corporation and 29.36 per cent from Infrastructure Leasing and Financial Services Limited (IL&FS). The decision to acquire a controlling stake in Investsmart triggered an Open offer to public shareholders, through which HSBC has accepted shares equivalent to 20.65 per cent of Investsmart's capital. E*TRADE Mauritius Limited, IL&FS and those that tendered shares through the open offer received INR200 per share for their Investsmart shares. In addition, IL&FS was paid, as part of a three-year non-compete agreement, INR82.0 crore (approximately US$17.9 million). In accordance with local regulations, HSBC paid interest of INR2.3 per share to the public shareholders who tendered their shares. This amounted to INR3.31 crore approximately US$0.72 million). Naina Lal Kidwai, Group General Manager and Chief Executive Officer, HSBC in India, added: "Investsmart is a great addition to our current operations, which already constitute the second largest foreign banking network in India. We look forward to working with Investsmart's management team and growing this business." HSBC was advised on the acquisition by the investment banking division of HSBC Global Banking and Markets.

9 MATS SCHOOL OF BUSINESS, BELGAUM

Notes to editors 1 HSBC in India The HSBC Group in India is represented by several entities including The Hongkong and Shanghai Banking Corporation Limited which offers a full range of banking and financial services to its over 2.8 million customers in India through its 47 branches and 170 ATMs across 26 cities. HSBC is one of India's leading financial services groups, with over 34,000 employees in its banking, investment banking and capital markets, asset management, insurance broking, two global IT development centres and six global resourcing operations in the country. The Bank is the founding and a principal member of the HSBC Group which, with over 9,500 offices in 85 countries and territories and assets of US$2,547 billion at 30 June 2008, is one of the world's largest banking and financial services organisations. 2. IL&FS Investsmart Limited (Investsmart) IL&FS Investsmart Group (IIL) is one of India's leading financial services organizations. IIL, through its subsidiaries in India and Singapore, provides a wide range of investment products to its retail and institutional clients including equity broking, investment banking, insurance broking and distribution, mutual funds distribution and related financing services. IIL's 2,000 employees provide a complete range of investment solutions to over 138,000 customers in India through its 88 branches and 190 franchisee outlets from 133 cities and has been recognized as "National Best Performing Financial Advisor - Retail" for two years in a row (06-07 and 07-08) by CNBC TV 18. With a market capitalisation of approximately US$260 million, Investsmart is listed on the National Stock Exchange and the Bombay Stock Exchange and its Global Depository Shares are listed on the Luxembourg Stock Exchange.

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Company Information Company History: Incorporation The Company was set up as Investsmart India Limited, a wholly owned subsidiary of Infrastructure Leasing & Financial Services Limited for carrying on capital market activities such as share and stock broking, underwriting, placement of securities etc. The Company was incorporated on September 01, 1997 and received the Certificate of Commencement of Business on October 07, 1997. Change In the Registered office of the Company IL&FS has set up a financial centre in Bandra Kurla Complex in Mumbai with a view to house all its subsidiaries, ventures etc. at the same place for administrative convenience and to pursue group synergy. Pursuant to this, on June 14, 2000 the registered office of the Company was changed from Mahindra Towers, 4th Floor, 'B1 Wing, Dr. G. M. Bhosale Marg, Worli, Mumbai 400 018 to The IL&FS Financial Centre, Plot C-22, G Block, Bandra-Kurla Complex, Bandra (E), Mumbai 400 051. Subscription by ORIX Corporation, Japan in 2000 ORIX subscribed to 80,00,000 equity shares in March 2000 representing 27.59% of the paid up capital at that point of time. ORIX is an integrated financial services group based in Tokyo, Japan, providing innovative value-added products and services to both corporate and retail customers. With operations in 24 countries worldwide, ORIX's activities include leasing, corporate finance, real estate-related finance and development, life insurance, and investment and retail banking. ORIX is made up of 202 consolidated subsidiaries and 74 affiliates. ORIX has 974 offices in Japan, with 234 locations throughout the United States, Asia, Oceania, Europe, the Middle East and Northern Africa. Amalgamation of IL&FS Merchant Banking Services Limited (IMBSL) and DebtonNet India Limited (OIL) with IL&FS In vests mart Ltd (erstwhile In vests mart India Limited) IL&FS, in addition to its core activity of infrastructure financing, was also registered with SEBI as a Category merchant banker since the inception of the SEBI (Merchant Banking Regulations) 1992. Consequent to changes in SEBI regulations on segregating merchant banking from fund based activities, IL&FS set up IL&FS Merchant Banking Services Limited (IMBSL) as a wholly owned subsidiary. IMBSL was set-up to provide full-fledged merchant banking services and was registered as a Category I merchant banker with SEBI. IL&FS also had a 50% stake in another company called DebtonNet India Limited (OIL), which was set up along with. National Stock Exchange of India Limited. DIL was set up to provide an automated and transparent platform, using the Internet, for 11 MATS SCHOOL OF BUSINESS, BELGAUM

book built debt issuances. Over a period of time DIL had enhanced the scope of the platform to provide a wide range of information, news and analytics relevant to the debt market. With a view to consolidate IL&FS's interests in the capital markets IMBSL and DIL were merged into the Investsmart India Limited. Prior to this, IL&FS had taken over the 50% stake of National Stock Exchange of India Limited in DIL. The scheme of amalgamation was approved by the High Court on August 01, 2002 and was effective from January 01, 2002. Benefits of the Merger The main benefits of the merger of IMBSL and DIL with IL&FS Investsmart Limited were as follows: 1. The merger resulted in making available to the parties the benefit of financial resources and the expertise of each other. 2. The activities undertaken by the three companies were supplementary and complementary to the activities of each other. It was felt that it would be advantageous to combine the activities of all the three companies in to a single company. The merger of IMBSL and DIL with IL&FS Investsmart Limited would provide synergy besides economies in costs by combining total business functions and the related activities and thus contribute to the profitability of the amalgamated company. 3. All the three companies had within themselves the wholesale and retail relationships and multiple resources capabilities that could be better leveraged under a common umbrella. 4. IL&FS Investsmart Limited was primarily focused on the retail segment through its broking and other distribution activities, IMBSL was focused on wholesale and institutional segments of the financial market and DIL was focused on the wholesale and institutional segments of the debt market. It was expected that the amalgamated company would have diversified income profile insulating itself from adverse market conditions and have better competitive positioning. 5. It was also expected that the amalgamated company would have the benefit of the combined resources, man-power and cash flows of all the three companies It was envisaged that with the enhanced capabilities and resources at its disposal, the amalgamated company would have greater flexibility to market and meet customer needs and compete more effectively, thus strengthening the position of the merged entity. Sale and Lease back of property from IL&FS The Company had purchased office premises for its registered office from IL&FS in September 2001 through two separate agreements for a total consideration of Rs 2382.66 lakhs. Out of these two agreements, one agreement covering an area of 7010 sq ft was entered into with IL&FS Merchant Banking Services Limited (which was subsequently merged with IL&FS Investsmart Limited) for a total consideration of Rs 12 MATS SCHOOL OF BUSINESS, BELGAUM

736.05 lakhs. The other agreement covering an area of 15682 sq ft was entered into with Investsmart India Limited for a total consideration of Rs 1646.61 lakhs. On January 30, 2004, the Company, through a Sale Deed sold the entire area aggregating 22692 sq ft for a total consideration of Rs 2541.50 lakhs to IL&FS. The Company has subsequently entered into business services agreements dated April 23, 2004 and December 31, 2004 with IL&FS pursuant to which it occupies the said premises. Change in name of the Company from Investsmart India Limited to IL&FS Investsmart Limited Pursuant to the merger of IMBSL and DIL with Investsmart India Limited, the stake of IL&FS increased from 53.33% to 60% and consequently IL&FS became a major shareholder of the Company. Further to reap the benefits of IL&FS brand and parentage, it was proposed to change the name from Investsmart India Ltd to IL&FS Investsmart Limited. A fresh certificate of incorporation was issued by the Registrar of Companies consequent to change of name on March 25, 2003. Induction of Strategic Investors SAIF Investment Company Limited, Mauritius SAIF has acquired 20% equity stake in 2004-05 in the Company. SAIF is a whollyowned subsidiary of Softbank Asia Infrastructure Fund (SBAIF). SBAIF is a leading Asian private equity firm headquartered in Hong Kong. SBAIF is a strategic joint venture between Softbank Corporation and Cisco Systems that was formed in early 2001 to make investments in information technology, media, and telecom related companies based (or with significant operations) in the Asia Pacific region. SBAIF focuses its efforts primarily on China, India and Korea. Cisco Systems, Inc. is the sole limited partner of the Fund and has committed $404 million in the first of a series of funds. Over the years, Softbank has made investments in E*TRADE FINANCIAL, Yahoo!, UTStarcom, Shanda, Sify Limited, & Intelligroup. E*TRADE Mauritius Limited (ETM) ETM acquired 13.94% equity stake in the Company. E*TRADE Mauritius Limited, is a wholly-owned Mauritius based subsidiary of Converging Arrows, Inc formed and existing under the laws of Nevada, which in turn is wholly-owned subsidiary of E*TRADE FINANCIAL Corporation. E*TRADE FINANCIAL provides financial services including brokerage, banking and tending for retail, corporate and institutional customers. With 2.7 million households and 3.5 million customer accounts worldwide, U.S.-based E*TRADE FINANCIAL Corporation operates branded web sites in 12 countries.

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Shareholding

Shareholding as on : Face Value

31/03/2009

10.00 No. Of Shares PROMOTER'S HOLDING Foreign Promoters 30625692 Indian Promoters 34922751 Sub Total 65548443 NON PROMOTER'S HOLDING Institutional Investors Mutual Funds and 36077 UTI Banks Fin. Inst. and 300 Insurance FII's 1485031 Sub Total 1521408 Other Investors Private Corporate 475476 Bodies NRI's/OCB's/Foreign 575764 Others Others 146601 Sub Total 1197841 General Public 1568581 GRAND TOTAL 69836273

31/12/2008

30/09/2008

10.00 10.00 % No. Of % No. Of % Holding Shares Holding Shares Holding 43.85 50.01 93.86

30625692 34922751 65548443

43.85 50.01 93.86

30625692 34930251 65555943

43.85 50.02 93.87

0.05

36077

0.05

36077

0.05

0.00

0

0.00

0

0.00

2.13 2.18

1485031 1521108

2.13 2.18

1385031 1421108

1.98 2.03

0.68

576450

0.83

594948

0.85

0.82

12347

0.02

13691

0.02

0.21 1.72 2.25 100.00

613712 0.88 1202509 1.72 1564213 2.24 69836273 100.00

714095 1.02 1322734 1.89 1536488 2.20 69836273 100.00

(Sources: www.moneycontrol.com)

14 MATS SCHOOL OF BUSINESS, BELGAUM

Financial Results a. Profit & Loss: The following is the Income statement for the last 5 years. (Rs in Cr.) Mar ' 09

Mar ' 08

Mar ' 07

Mar ' 06

Mar ' 05

Income : Operating Income

7.32

23.35

110.54

212.81

107.41

Expenses Material Consumed Manufacturing Expenses Personnel Expenses Selling Expenses Adminstrative Expenses Expenses Capitalised

0.00 0.00 10.64 0.38 3.53 0.00

0.00 0.00 5.84 0.61 5.64 0.00

0.00 0.00 26.07 8.83 22.59 0.00

0.00 0.00 42.91 28.60 37.96 0.00

0.00 0.00 23.14 1.24 28.13 0.00

Cost Of Sales

14.55

12.09

57.49

109.46

52.51

Operating Profit

-7.23

11.26

53.05

103.35

54.90

Other Recurring Income

17.92

17.62

12.89

4.16

0.93

Adjusted PBDIT

10.69

28.88

65.94

107.50

55.83

Financial Expenses Depreciation Other Write offs

0.00 0.83 0.00

3.38 0.09 0.00

3.63 2.12 0.00

1.92 4.64 0.22

3.49 3.40 0.12

Adjusted PBT

9.85

25.41

60.18

100.73

48.82

Tax Charges

4.21

9.82

19.85

31.28

15.59

Adjusted PAT Non Recurring Items Other Non Cash adjustments

5.64 -20.85 0.00

15.59 -0.01 0.00

40.33 -1.07 -0.80

69.45 -0.16 -0.17

33.23 -0.11 -0.07

Reported Net Profit

-15.21

15.58

38.46

69.12

33.06

Earnigs Before Appropriation

66.29

107.57

116.29

108.42

51.56

15 MATS SCHOOL OF BUSINESS, BELGAUM

Equity Dividend Preference Dividend Dividend Tax Retained Earnings

0.00 0.00 0.00 66.29

20.95 0.00 3.56 83.06

17.49 0.00 2.97 95.83

20.77 0.00 2.91 84.74

7.87 0.00 1.07 42.61

b. Balance Sheet: The following is the balance sheet for the last 5 years. (Rs in Cr) Mar ' 09

Mar ' 08

Mar ' 07

Mar ' 06

Mar ' 05

69.84 0.00 0.00 597.39

69.84 0.00 0.00 612.59

69.84 0.00 0.00 621.53

66.92 1.62 0.00 591.86

35.00 0.00 0.00 51.85

0.00 0.23

0.00 0.00

73.71 0.00

1.47 0.00

2.81 20.00

Total

667.46

682.43

765.08

661.87

109.66

USES OF FUNDS Fixed Assets Gross Block Less : Revaluation Reserve Less : Accumulated Depreciation Net Block Capital Work-in-progress

12.49 0.00 1.27 11.23 0.00

1.20 0.00 0.49 0.71 0.00

2.22 0.00 1.14 1.09 0.00

32.36 0.00 17.46 14.91 0.00

25.85 0.00 13.28 12.57 0.00

Investments

478.49

448.99

433.99

37.43

16.04

261.77

370.60

919.87

184.08

29.04

40.60

310.34

103.26

232.73

330.00

609.54

80.82

0.00

0.00

0.00

0.22

682.43

765.08

661.88

109.65

SOURCES OF FUNDS Owner's Fund Equity Share Capital Share Application Money Preference Share Capital Reserves & Surplus Loan Funds Secured Loans Unsecured Loans

Net Current Assets Current Assets, Loans & 180.18 Advances Less : Current Liabilities & 2.44 Provisions Total Net Current Assets 177.74 Miscellaneous expenses not 0.00 written Total

667.46

Note :

16 MATS SCHOOL OF BUSINESS, BELGAUM

Book Value of Unquoted Investments Market Value of Quoted Investments Contingent liabilities Number of Equity shares outstanding (in Lacs)

478.49

448.99

433.99

37.43

16.04

0.00

0.00

0.00

0.00

0.00

191.17

345.76

290.00

6.70

1.27

698.36

698.36

698.36

669.21

350.00

(Source: www.moneycontrol.com) c. Ratios Mar ' 09

Mar ' 08

Mar ' 07

Mar ' 06

Mar ' 05

0.80 0.92 -2.18 -2.06 0.00 -1.04

2.23 2.25 2.23 2.24 3.00 1.61

5.77 6.08 5.51 5.81 2.50 7.60

10.38 11.10 10.33 11.05 3.00 15.44

9.49 10.50 9.45 10.45 2.25 15.69

95.54

97.72

99.00

98.44

24.75

95.54

97.72

99.00

98.44

24.75

1.05 84.92

3.34 87.09

15.83 88.37

31.80 87.79

30.69 13.50

-98.80 -110.12 -60.26 25.62 0.84 -2.27 1.47

48.22 47.83 38.03 38.26 2.28 2.28 4.21

47.99 46.07 31.16 34.39 5.83 5.56 8.34

48.56 46.38 31.85 34.24 10.54 10.49 15.54

51.11 47.95 30.51 33.92 38.35 38.16 58.34

0.00 0.00 99.96 6.48

0.00 0.00 100.00 20.00

0.10 0.10 90.36 50.56

0.00 0.00 99.77 8.72

0.03 0.26 79.20 5.68

PER SHARE RATIOS Adjusted E P S (Rs.) Adjusted Cash EPS (Rs.) Reported EPS (Rs.) Reported Cash EPS (Rs.) Dividend Per Share Operating Profit Per Share (Rs.) Book Value (Excl Rev Res) Per Share (Rs.) Book Value (Incl Rev Res) Per Share (Rs.) Net Operating Income Per Share (Rs.) Free Reserves Per Share (Rs.) PROFITABILITY RATIOS Operating Margin (%) Gross Profit Margin (%) Net Profit Margin (%) Adjusted Cash Margin (%) Adjusted Return On Net Worth (%) Reported Return On Net Worth (%) Return On long Term Funds (%) LEVERAGE RATIOS Long Term Debt / Equity Total Debt/Equity Owners fund as % of total Source Fixed Assets Turnover Ratio LIQUIDITY RATIOS

17 MATS SCHOOL OF BUSINESS, BELGAUM

Current Ratio Current Ratio (Inc. ST Loans) Quick Ratio Inventory Turnover Ratio

73.96 67.48 73.69 0.00

9.01 9.01 6.32 0.29

9.13 9.13 7.96 0.00

2.96 2.96 2.95 0.00

1.78 1.49 1.56 0.00

(Source: www.moneycontrol.com)

d. Cash Flow Statement:

Profit Before Tax Net CashFlow-Operating Activity Net Cash Used In Investing Activity NetCash Used in Fin. Activity Net Inc/Dec In Cash And Equivlnt Cash And Equivalnt Begin of Year Cash And Equivalnt End Of Year

(Rs in Cr) Mar ' 09 Mar ' 08 Mar ' 07 Mar ' 06 Mar ' 05 -10.99 25.41 59.11 100.57 48.70 14.15

118.55

-89.91

-21.48

19.91

-74.49

-14.23

1.26

-468.76

5.81

-24.51

-20.87

59.32

501.79

-8.84

-84.85

83.45

-29.33

11.55

16.88

86.71

3.37

32.70

21.15

4.27

1.86

86.81

3.37

32.70

21.15

(Source:www.moneycontrol.com)

18 MATS SCHOOL OF BUSINESS, BELGAUM

e. Quarterly Results: Mar ' 09

Dec ' 08

Sep ' 08

Jun ' 08

Mar ' 08

Sales Other Income Stock Adjustment Raw Material Power And Fuel Employee Expenses Excise Admin And Selling Expenses Research And Devlopment Expenses Expenses Capitalised Other Expeses Provisions Made Operating Profit Interest Gross Profit Depreciation Taxation Net Profit / Loss Extra Ordinary Item Prior Year Adjustments

3.33 0.11 0.00 0.00 0.00 0.11 0.00 0.00

4.29 0.46 0.00 0.00 0.00 7.03 0.00 0.00

9.02 -0.08 0.00 0.00 0.00 1.96 0.00 0.00

3.05 5.06 0.00 0.00 0.00 1.55 0.00 0.00

1.69 4.83 0.00 0.00 0.00 0.95 0.00 0.00

0.00

0.00

0.00

0.00

0.00

0.00 0.51 0.00 2.72 0.00 2.82 0.32 1.64 -0.01 -0.87 0.00

0.00 0.87 0.00 -3.61 0.00 -3.15 0.33 -1.14 -14.55 -12.21 0.00

0.00 1.52 0.00 5.55 0.00 5.46 0.16 1.83 -4.17 -7.64 0.00

0.00 1.13 0.00 0.36 0.00 5.42 0.01 1.89 3.52 0.00 0.00

0.00 1.86 0.00 -1.12 0.10 3.62 0.02 2.18 1.42 0.00 0.00

Equity Capital Equity Dividend Rate Agg.Of Non-Prom. Shares (in lacs) Agg.Of Non PromotoHolding(%)

69.84 0.00 42.88 6.14

69.84 0.00 42.88 6.14

69.84 0.00 42.80 6.13

69.84 0.00 187.09 26.79

69.84 0.00 187.09 26.79 19

MATS SCHOOL OF BUSINESS, BELGAUM

OPM(%) GPM(%) NPM(%) EPS (in Rs.)

81.53 -84.15 61.47 11.87 82.07 -66.28 61.11 66.86 -0.29 -306.36 -46.65 43.44 0.00 -2.08 -0.60 0.50 (Source: www.moneycontrol.com)

-66.33 55.48 21.77 0.20

e. Half Yearly Results Mar ' 09

Sep ' 08

Mar ' 08

Sep ' 07

Mar ' 07

Sales Other Income Stock Adjustment Raw Material Power And Fuel Employee Expenses Excise Admin And Selling Expenses Research And Devlopment Expenses Expenses Capitalised Other Expeses Provisions Made Operating Profit Interest Gross Profit Depreciation Taxation Net Profit / Loss Extra Ordinary Item Prior Year Adjustments

12.24 -4.05 0.00 0.00 0.00 7.13 0.00

12.07 4.98 0.00 0.00 0.00 3.51 0.00

5.22 9.15 0.00 0.00 0.00 1.80 0.00

18.13 8.47 0.00 0.00 0.00 4.04 0.00

31.11 7.58 0.00 0.00 0.00 13.70 0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00 1.38 0.00 3.73 0.00 -0.33 0.65 0.50 -14.56 -13.08 0.00

0.00 2.65 0.00 5.91 0.00 10.89 0.18 3.72 -0.65 -7.64 0.00

0.00 3.28 0.00 0.14 1.56 7.73 0.04 3.74 3.96 0.00 0.00

0.00 2.98 0.00 11.11 1.82 17.77 0.05 6.09 11.62 0.00 0.00

0.00 6.89 0.00 10.52 2.90 15.20 0.11 6.67 8.42 0.00 0.00

Equity Capital Equity Dividend Rate

69.84 0.00

69.84 0.00

69.84 0.00

69.84 0.00

69.84 0.00 20

MATS SCHOOL OF BUSINESS, BELGAUM

Agg.Of Non-Prom. Shares 42.88 (in Lacs) Agg.Of Non 6.14 PromotoHolding(%) OPM(%) 30.44 GPM(%) -4.00 NPM(%) -177.88 EPS (in Rs.) -2.08

42.80

187.09

185.29

184.89

6.13

26.79

26.53

26.47

48.95 2.68 61.29 63.85 53.82 66.77 -3.80 27.54 43.69 -0.09 0.57 1.66 (Source: www.moneycontrol.com)

33.80 39.28 21.75 1.21

f. Annual Results: Mar ' 09

Mar ' 08

Mar ' 07

Mar ' 06

Mar ' 05

Sales Other Income Stock Adjustment Raw Material Power And Fuel Employee Expenses Excise Admin And Selling Expenses Research And Devlopment Expenses Expenses Capitalised Other Expeses Provisions Made Operating Profit Interest Gross Profit Depreciation Taxation Net Profit / Loss Extra Ordinary Item Prior Year Adjustments

24.31 0.93 0.00 0.00 0.00 10.64 0.00 0.00

23.35 17.62 0.00 0.00 0.00 5.84 0.00 0.00

110.54 12.89 0.00 0.00 0.00 26.07 0.00 0.00

212.81 4.16 0.00 0.00 0.00 42.70 0.00 0.00

106.94 0.93 0.00 0.00 0.00 23.08 0.00 0.00

0.00

0.00

0.00

0.00

0.00

0.00 4.03 0.00 9.63 0.00 10.56 0.83 4.21 -15.21 -20.72 0.00

0.00 6.26 0.00 11.25 3.38 25.50 0.09 9.83 15.58 0.00 0.00

0.00 32.49 0.00 51.98 3.63 61.23 2.12 20.65 38.46 0.00 0.00

0.00 67.14 0.00 102.97 1.92 105.21 4.64 31.28 69.29 0.00 -0.17

0.00 29.19 0.00 54.67 3.49 52.10 3.40 15.59 33.11 0.00 -0.05

Equity Capital

69.84

69.84

69.84

66.92

35.00 21

MATS SCHOOL OF BUSINESS, BELGAUM

Equity Dividend Rate Agg.Of Non-Prom. Shares (in Lacs) Agg.Of Non PromotoHolding(%) OPM(%) GPM(%) NPM(%) EPS (in Rs.)

0.00

30.00

0.00

30.00

0.00

42.88

187.09

184.89

464.19

170.33

6.14 26.79 26.47 69.36 39.63 48.20 47.02 48.38 41.84 62.23 49.61 48.48 -60.26 38.03 31.16 31.93 -2.18 2.23 5.51 10.35 (Source: www.moneycontrol.com)

48.67 51.12 48.30 30.70 9.46

g. Price Quotes Exchange Last Traded Price Last Traded Date Last Traded Time Change (Rs.) Change (%) Day's Open Previous Close Day's High Day's Low Bid Price Bid Quantity Offer Price Offer Quantity Total Traded Value (Rs. In Lakhs) Total Traded Quantity Number Of Trades

BSE 222.80 7/6/2009 3:54:00 PM 10.60 5.00% 222.80 212.20 222.80 221.75 222.80 1,679 0.00 0 19.47 8,737 96

NSE 223.20 7/6/2009 3:50:37 PM 10.65 5.01% 222.05 212.55 223.20 220.00 223.20 1,550 0.00 0 33.53 15,028 118

52 Week High / Low Exchange BSE

High 222.80

High Date 7/6/2009

Low 43.05

Low Date 3/13/2009 22

MATS SCHOOL OF BUSINESS, BELGAUM

NSE

223.20

7/6/2009

43.00

3/17/2009

Exchange Codes BSE : Sensex :

532653 NSE : INVSTSMARTEQ 14,043.40 [-5.83% ] Nifty : 4,165.70 [-5.84% ] (Sources of data: www.moneycontrol.com)

h. High/Low Weekly High Lows : NSE Week Ending High (Rs.) 03/07/2009 212.55 26/06/2009 198.95 19/06/2009 155.80 12/06/2009 143.05 05/06/2009 139.85 29/05/2009 137.50 22/05/2009 131.50 14/05/2009 103.00 08/05/2009 99.95 29/04/2009 97.00

Fifty Two Week High Low Exchange High (Rs.) Name NSE 223.20 BSE 222.80

High Date 03/07/2009 26/06/2009 19/06/2009 12/06/2009 01/06/2009 29/05/2009 21/05/2009 11/05/2009 08/05/2009 27/04/2009

Low (Rs.) 197.50 163.60 127.40 120.00 123.40 119.10 105.00 95.50 90.00 88.05

Low Date 01/07/2009 22/06/2009 16/06/2009 09/06/2009 02/06/2009 27/05/2009 19/05/2009 13/05/2009 05/05/2009 29/04/2009

High Date

Low (Rs.)

Low Date

06/07/2009 06/07/2009

43.00 43.05

17/03/2009 13/03/2009

23 MATS SCHOOL OF BUSINESS, BELGAUM

Yearly High Low : NSE Year Ending High (Rs.) 03/07/2009 212.55 31/12/2008 310.00 31/12/2007 300.00 29/12/2006 256.50 30/12/2005 257.40

High Date Low (Rs.) Low Date 03/07/2009 43.00 17/03/2009 08/01/2008 58.00 04/12/2008 04/12/2007 142.00 13/11/2007 04/04/2006 104.10 21/07/2006 22/09/2005 168.00 01/08/2005 (Source: www.moneycontrol.com)

HOW TO ACQUIRE EQUITY SHARES Acquiring equity shares There are two methods to issues made by corporate in the primary market. In the primary market, resources are mobilized by the corporate through fresh public issues (IPO’s) or through private placements. OR You may purchase shares from the secondary market. To buy and sell securities you should approach a SEBI registered member (broker) of a recognized stock exchange.

The documents required for opening a DMAT account and Trading account: • • • •

PAN card Address proof 2 photographs (identity size) 2 cheque (1 cancelled and 1 amount) 24 MATS SCHOOL OF BUSINESS, BELGAUM

Comparative analysis BASIS

No. branches

IL&FS INVESTSMART

of 300

Brokerage Intraday Brokerage Delivery Brokerage Futures DMAT A/C and Trading A/C AMC

INDIABULLS

KARVY STOCK BROKING

MOTILAL OSWAL SECURITIES

ANANDRATHI SECURITIES

640

200

1160

132

0.05

0.10

0.05

0.04

0.05

0.50

0.50

0.50

0.40

0.50

0.05

0.10

0.05

0.04

0.05

Rs.950

Rs.900

Rs.455

Rs.500

Rs.450

Rs.300

NIL

NIL

Rs.450

NIL

25 MATS SCHOOL OF BUSINESS, BELGAUM

Exposure Intraday

Depends

8 times

Depends

2 times

Depends

Delivery

Depends

4 times

Depends

Depends

Depends

Days limit

Depends

7 times

Depends

Depends

Depends

NUMBER OF BRANCHES: Number of branches 1400 1200 1000 800

Number of branches

600 400 200 0 IL&FS

KARVY

INDIABULLS

MOTILAL OSWAL

ANAND RATHI

Comparative Intraday Brokerage Charges:

26 MATS SCHOOL OF BUSINESS, BELGAUM

Intraday Brokerage 0.12 0.1 0.08 0.06

Intraday Brokerage

0.04 0.02 0 IL&FS

KARVY

INDIABULLS

MOTILAL OSWAL

ANAND RATHI

DMAT and Trading A/C charges: DMAT and Trading A/C charges 1000 900 800 700 600 500 400 300 200 100 0

O

I AT H R

AN AN D

SW AN

LL S O TI LA L M

IN DI A

BU

VY KA R

IL &F

S

DMAT and Trading A/C charges

27 MATS SCHOOL OF BUSINESS, BELGAUM

MARKET RETURN BSE 2009

Absolute returns as on 03-jul-

INDEX 1 wk

1mth

3 mth

6mth

1yr

2yr

3yr

5yr

1.1

0.2

45.8

47.1

14.9

1.3

44

202.1

1.1

0.1

47.5

47.9

14.6

-0.5

42.3

188

1

0.3

41.6

45.1

13.9

0.7

39.4

207.9

-1.3

2.3

32.4

31

-11.4

-29.9

4.7

113.3

3.8

-2.3

48.5

47.4

48.4

20.5

65.2

171.4

1.1

-0.4

48.2

47.7

12.3

-3.6

39.4

190.6

-0.7

7

84.3

73.7

30

3.8

84.4

543

0.3

1.9

15.1

14.7

19.4

23.9

15.6

174.6

0.5

3.9

27.7

22

-11

-5.2

16.7

69.2

BSE-100 BSE-200 SENSEX BSE TECK INDEX BSE PSU INDEX BSE-500 CAPITAL GOODS BSE FMCG INDEX BSE HEALTHCARE

28 MATS SCHOOL OF BUSINESS, BELGAUM

BSE CD INDEX 3.6

-1.3

64.3

47.2

-13.8

-29.9

8.3

227

-1.4

7.7

35.6

42.2

-17.6

-31.8

-12.5

78.4

1.7

5

71.7

44

49.8

3.9

94.1

255.5

-1.2

-3.7

40.6

80.6

36.6

-4

-2.5

-

3.4

-5.4

75.2

92.6

-6.7

6

32.5

-

2.2

-7.5

23.9

46.3

7.6

25.7

79.8

-

0.3

-2.6

61.9

50.3

0.5

-22

18

-

0.4

-8.8

64.2

48.7

-8.3

-25.8

8.6

-

2.1

-13.8

85.8

39.4

-20

-53.4

-

-

0.9

-0.2

49.6

50.9

34.8

-

-

-

1.9

-1.8

52.4

49.3

-

-

-

-

BSE IT INDEX BANKEX BSE AUTO BSE METAL BSE OIL & GAS BSE-MIDCAP BSE-SMALLCAP BSE REALTY BSE POWER INDEX DOLLEX 100

NSE 2009

Absolute returns as on 03-jul-

INDEX 1 wk

1mth

3mth

6mth

1yr

2yr

3yr

5yr

1.9

-1.8

52.4

49.3

0.3

3.1

69.3

62.2

33.6

-9.4

51.6

174.4

1.3

-2.4

44.3

46.6

15.1

-2.7

38.4

183

1.9

-4.3

42

43.7

1.6

-14.1

34.9

177.3

1.1

-2.3

35.9

41.7

12.7

1.5

40.4

189.8

CNX IT

-0.6

7.2

41.5

52.9

-11

-31.5

-11.5

65.9

BANK NIFTY

2.3

4.2

68.6

41.2

56

10.3

103.4

-

CNX MIDCAP

0.5

-0.9

54.4

43.3

10.3

-8.3

40.2

-

CNX 100

1

-1.5

40.2

44.6

15.5

-0.1

-

-

NIFTY MIDCAP 50

-0.1

-2

66.9

49.4

12.1

-

-

-

DOLLEX 100 CNX NIFTY JR S&P CNX 500 S&P CNX DEFTY S&P CNX NIFTY

29 MATS SCHOOL OF BUSINESS, BELGAUM

NSE RETURNS (last 5 years) 250 200

1 wk

150

1mth

100

3mth 6mth

50

1yr

0 50

10 0 X

3yr 5yr

NI FT Y

M

X CN

ID CA P

M

NI F K

BA N

CN

ID CA P

TY

IT X CN

TY NI F

TY

CN X

DE F

S& P

S& P

CN X

50 0

JR

CN X

TY

NI F X

CN

DO

S& P

10 0

2yr

LL EX

-50

DATA ANALYSIS Gender: - Table no. 1 Gender 100 90 80 70 60 50 40 30 20 10 0

Respondant %

Male

Female

30 MATS SCHOOL OF BUSINESS, BELGAUM

Gender Respondent

%

Male Female

93 07

93 07

Interpretation: I have asked the questionnaire 93% of the male investor and 7% of female investor.

•

Ages of respondents:

Table no. 2 Age of Respondent

40 35 30 25 20

Respondent

15 10 5 0 20 to 25

Years 20 to 25 26 to 30

26 to 30

31 to 35

36 to 40

40 & above

Respondent 04 13 31

MATS SCHOOL OF BUSINESS, BELGAUM

31 to 35 36 to 40 40 & above

25 37 21

Interpretation: I divided survey in different age segments that is from 20 to 40 and above.

1. What is your profession? Table no.3 Respondent

11% 29%

Doctor Businessmen

43%

13%

Professors Student Other

4%

Respondent % 32 MATS SCHOOL OF BUSINESS, BELGAUM

Doctor Businessmen Professors Student Other

11 43 4 13 29

11 43 4 13 29

Interpretation: I found that most of the investors are businessmen and 43% of the investors are businessmen have more interested in equity trading.

2. What is your annual income? Table no. 4

Respondant

10%

16% <100000

19%

100000 to 200000 23%

200000 to 300000 300000 to 400000 >500000

32%

33 MATS SCHOOL OF BUSINESS, BELGAUM

Respondent 16 23 32 19 10

<100000 100000 to 200000 200000 to 300000 300000 to 400000 >400000

% 16 23 32 19 10

Interpretation: most of the investors that is 55% of the investors have the annual income of Rs.100000 – 300000.

3. How much amount you have invested in equity trading? Table no. 5

Respondant

17%

23%

10000 – 25000 25000 – 50000 21% 19%

50000 – 75000 75000 – 100000 Above 100000

20%

34 MATS SCHOOL OF BUSINESS, BELGAUM

Respondent 17 21 20 19 23

10000 – 25000 25000 – 50000 50000 – 75000 75000 – 100000 Above 100000

% 17 21 20 19 23

Interpretation: most of the investors are businessmen and I found that they invested more than 100000 in equity trading.

4. How often do you trade in equity market? Table no. 6 Respondant

7%

21%

17%

Daily Weekly Monthly Quarterly

26%

29%

Half yearly

35 MATS SCHOOL OF BUSINESS, BELGAUM

Respondent 21 29 26 17 7

Daily Weekly Monthly Quarterly Half yearly

% 21 29 26 17 7

Interpretation: 29% of the investors like to trade weekly basis but daily investors is also more, that is 21%.

5. Which sector you want to invest your money? Table no. 7 Respondant

17% 34%

Software sector Real state 21%

Banking sector Infrastructure All of the above

17%

11%

Respondent % 36 MATS SCHOOL OF BUSINESS, BELGAUM

Software sector Real state Banking sector Infrastructure All of the above

17 21 11 17 34

17 21 11 17 34

Interpretation: There is no particular sector that is investors wants to invest there money in one sector. I found that more of the investors wants to invest there money in different sector but most of them invest there money in real estate and infrastructure sector.

6. Are you satisfied the company you have invested your money in equity market? Table no. 8 Respondant

20% Highly satisfied 41%

3%

Satisfied Dissatisfied

9%

Highly dissatisfied Neither satisfied nor dissatisfied 27%

37 MATS SCHOOL OF BUSINESS, BELGAUM

Respondent 41 27 nor 21

Highly satisfied Satisfied Neither satisfied dissatisfied Dissatisfied Highly dissatisfied

9 3

% 41 27 21 9 3

Interpretation: 68% of the investors are satisfied with they have invest there money in different sector.

7. What do you feel about services provided by IL&FS Investsmart Securities Ltd? Table no. 9

Respondent

17%

21% Very good Good

19%

Can’t say Bad 43%

Respondent

% 38

MATS SCHOOL OF BUSINESS, BELGAUM

Very good Good Can’t say Bad

21 43 19 17

21 43 19 17

Interpretation: 75% of the investors are satisfied with the services provided by IL&FS Investsmart Securities Ltd.

8. If it’s good, why do you think so? Table no. 10 Respondant

23%

29%

Delivery brokerage is low Options brokerage is low Intraday brokerage is low Low account op. charges 19%

13%

Services

16%

Delivery brokerage is low

Respondent % 23 23 39

MATS SCHOOL OF BUSINESS, BELGAUM

Options brokerage is low Intraday brokerage is low No account op. charges Services

19 16 13 29

19 16 13 29

Interpretation: They are satisfied because they think that the service and brokerage rate is low compared to other companies.

9. If it's bad, why do you think so? Table no. 12 Respondant

11% Delivery brokerage is high 47%

26%

Options brokerage is high Intraday brokerage is high High account op. charges Service is bad

0% 16%

Respondent

% 40

MATS SCHOOL OF BUSINESS, BELGAUM

Delivery brokerage is high Options brokerage is high Intraday brokerage is high Account op. charges is high Service is bad

9 3 0 5 2

47 16 0 26 11

Interpretation: 25% of respondents are not satisfied because they think that the brokerage cost is high and also the account opening charges is high.

CALCULATIONS 1. Hypothesis testing – satisfaction level of customers. As the scale used is ordinal, chi-square test – Goodness of fit is used. H0:.The investors are satisfied with service provided by IL&FS Investsmart Securities Ltd H1: The investors are not satisfied with service provided by IL&FS Investsmart Securities Ltd Let, Oi = Observed frequency Ei = Expected frequency Therefore, Ei = Total Value / Number of categories λ² = ∑ (Oi – Ei)2 Ei 41 MATS SCHOOL OF BUSINESS, BELGAUM

Table 7: Computation of Test Statistics - Television Oi 21 11 34 21 17

Ei 20 20 20 20 20

Oi-Ei 1 -9 -14 -1 -3

(Oi-Ei)² 1 81 196 1 9 Total

Λ² 0.05 4.05 9.8 0.05 0.45 14.4

Assumed, Level of Significance (α) = 5% Degree of freedom (v) = k – 1 Where k = number of categories Therefore, v = 5 – 1 = 4 Critical value = 9.488 As the calculated λ² = 14.4 is more than the critical value 9.488. Therefore H0 is accepted and H1 is rejected. Conclusion: The investors are satisfide with service provided by IL&FS Investsmart Securities Ltd.

2. Hypothesis testing – satisfaction level of customers. As the scale used is ordinal, chi-square test – Goodness of fit is used. H0: The investors are satisfied the company with they have invested their money in equity market H1: The investors are not satisfied the company with they have invested their money in equity market Let, Oi = Observed frequency 42 MATS SCHOOL OF BUSINESS, BELGAUM

Ei = Expected frequency Therefore, Ei = Total Value / Number of categories λ² = ∑ (Oi – Ei)2 Ei Table 18: Oi 40 27 21 9 3

Ei 20 20 20 20 20

Oi-Ei 20 7 1 -11 -17

(Oi-Ei)² 400 49 1 121 289 Total

Λ² 20 2.45 0.05 6.05 14.45 43

Assumed, Level of Signoficance (α) = 5% Degree of freedom (v) = k – 1 Where k = number of categories Therefore, v = 5 – 1 = 4 Critical value = 9.488 As the calculated λ² = 43 is more than the critical value 9.488. Therefore H0 is accepted and H1is rejected. Conclusion: The investors are satisfied the company with they have invested their money in equity market.

43 MATS SCHOOL OF BUSINESS, BELGAUM

Findings: 

Amongst the 100 respondent majorities of respondents come under income of Rs200000 to 300000 and least of respondent’s lies in the annual income of above Rs300000.



The small investors usually invest their money on monthly or quarterly basis.



All the investor would like to invest there money in different sector mostly in IT, Software, Real-estate, Infrastructure etc.



More than 60% of the investors are satisfied with they have invested there money in stock market.



Now a day every one should want enter in to contract of stock market. Because everyone wants to make profit in short period of time.



Mostly investors invest there money in NSE rather than BSE.

Suggestions: 44 MATS SCHOOL OF BUSINESS, BELGAUM



Investors should undertake an analysis before investing into the stock market, as most of the investors do not undertake any study before into a particular stock.



Before making an investment or trade on particular script the in-depth analysis of that script is very important to yield more on our investment and to minimize the amount of risk involved.



Company should create the awareness about investment in securities among the investors. They should visit the general public, businessmen, government offices and other work places and guide them about the stock market. This will help the company to large customer base.



Conduct seminars, workshops on capital markets, so that customers will come to know about the risk and return involved in investing equity market.



For attracting the new customers it should increase the number of sales executives.



The company has to provide proper training to new investors to avoid losses. New customer’s ma not be having the sufficient knowledge of the basic concept.

Conclusion: In IL&FS Investsmart Securities Ltd, I was able to learn the real practical World of the stock market. The market risk involved in share trading. The customer’s action when the market price fluctuates. Stock market or capital market provides the industry with a lot of capital needed by the industry, which leads to the growth of the industry and economy as a whole. Hence the stock market plays an important role in the development of the industry. As more and more people are attracted towards share market because of the returns they get, stock broking is growing day by day.

45 MATS SCHOOL OF BUSINESS, BELGAUM

Annexure:

Questioner: “Perception of investors about equity trading” Name: Address:Contact no ……............... 1. What is your profession? Doctor Businessman

Professor Student

Others, specify-------------------------

2. What is your annual income? 46 MATS SCHOOL OF BUSINESS, BELGAUM

<100000

100000-200000

200000-300000

300000-400000

>400000 3. How much amount you have invested in equity trading? 10000-25000 50000-75000

25000-50000 75000-100000

More than 100000 4. How often do you trade in equity market? Daily

Monthly

Weekly

Half yearly

Quarterly

5. Which sector you want to invest your money? Software sector Banking sector

Real estate Infrastructure

All of the above 6. Are you satisfied the company you have invested your money in equity market? Highly satisfied

Dissatisfied

Satisfied

Highly unsatisfied

Neither satisfied nor dissatisfied

7. What do you feel about services provided by IL&FS Investsmart Securities Ltd.? Very good Good

Can’t say Bad 47

MATS SCHOOL OF BUSINESS, BELGAUM

8. If it’s good, why do you think so? Delivery brokerage is low Options brokerage is low

Intraday brokerage is low Low account op.charges

Services 9. If it's bad, why do you think so? Delivery brokerage is high Options brokerage is high

Intraday brokerage is high Account op. charges is high

Service is bad Signature respondent Thank you……

Bibliography: Books; 

Research Methodology (C.R Kothari)



Portfolio Analysis and Management (Prasanna Chandra)



Dalal Street (magazine)

Websites; 

www.nseindia.com



www.bseindia.com



www.moneycontrol.com 48 MATS SCHOOL OF BUSINESS, BELGAUM



www.investsmart.com



www.buzzingstock.com

49 MATS SCHOOL OF BUSINESS, BELGAUM