India Infoline

THE DOGMAS OF THE QUIET PAST ARE INADEQUATE TO THE STORMY PRESENT. AS OUR CASE IS NEW, SO WE MUST THINK ANEW AND ACT A NEW.

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India Infoline – An Introduction

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Product Offerings

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Competitors

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Our Other Businesses – Brief Overview

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India Infoline – An Introduction We were originally incorporated on October 18, 1995 as PROBITY RESEARCH AND SERVICES PVT LTD. at Mumbai under the Companies Act, 1956 with Registration No. 11 93797. We became a public limited company on April 28, 2000. The name of the Company was changed to India Infoline.com Limited on May 23, 2000 and later to India Infoline Limited on March 23, 2001. First Company in India to foray into the online distribution of Mutual Funds. We are a one-stop financial services shop, most respected for quality of its advice, personalized service and cutting-edge technology.

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The No.1Corporate agent for ICICI Prudential Life Insurance Company.

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Research acknowledged by Forbes as “Must Read for investor in South Asia”

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Listed on Bombay and National Stock Exchange with a net worth of INR 200 crore and a market cap of over INR 1970 crore.

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The company has a network of 976 business locations (branches and sub-brokers) spread across 365 cities and towns. It has more than 800,000 customers.

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It is registered with NSDL as well as CDSL as a depository participant, providing a one-stop solution for clients trading in the equities market.

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PILLARS OF THE ORGANIZATION.  Unlike others, India Infoline has the concept of an Investment Team  The brains behind all the investment strategies and decisions regarding Wealth Management Services are:

Mr Nirmal Jain MBA:IIM-A, Chartered & Cost Accountant

Mr R Venkataraman MBA:IIM-B, B.Tech:IIT Kharagpur

MBA:II

Mr Anand Tandon MBA:IIM-A, B.Tech: IIT Kanpur Mr Venkat Subramanian BSc,

B.sc chartered Accountant

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OUR MULTI LINE BUSINESS:-

INVESTMENT BANKING:6 Verticals for any kind of transactional requirement

INSTITUTIONAL EQUITIES:One of the largest equity desks. Leadership in derivatives

ASSET MANAGEMENT:Maximum risk adjusted returns

WHOLESALE FINANCING:Customized funding for Companies, Institutions and HNWIs

WEALTH MANAGEMENT:Life-cycle financial solutions Unparalleled range of advisory services

PRIVATE CLIENT BROKERAGE:Services across 976 Locations Largest range of products

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OUR UNIQUE APPROACH :-

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Pr PRODUCT OFFERINGS:Direct Equity and F & O Trading 

Providing in-house research based advice on selected stocks

Portfolio Management Services 

Advise on Portfolio management Services.

Structured Products 

Products that offer our clients unique risk-reward equations that are customised to their investment objectives

Mutual Funds Advisory 

Research based recommendations on Top Picks in Mutual Funds

Insurance Advisory 

Life & General Insurance Advisory

Real Estate Funds 

Advise on Investment in Real Estate through Fund structure

Art Funds 

Advise on Investment in Art through Fund structure

Bullion Trading 

Bullion buying and selling

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Product Offerings (Financing Products) IPO Funding 

Advising and facilitating financing on select IPOs based on our in-house research

Loan Against Securities (Margin Funding ) 

Provide Overdraft facility against collateral of Shares/ MF units

LAS Series (Term Loans) 

Provide Term Loan facility against collateral of Shares/ MF units

Promoter Funding 

Provide Term Loan facility against collateral of Shares

ESOP Funding 

Provide Term Loan/ Overdraft facility against collateral of Shares to be allotted to Employees

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MILESTONES KEY:Incorporated on 18 October 1995 as probity research and services. Launched internet portal wwwindiainfoline.com in may 1999. Commenced distribution of personal financial products like MF’s and RBI’s Bond in April 2000. Launched online trading in shares branded as www.5paisa.com in July 2000. 10

Started life-insurance agency business in Dec. 2000 as corporate agent. Became a depository participant of NSDL in September 2001. Launched stock messaging services in May 2003. Acquired commodities broking license in March 2004. 11

Launched portfolio management services in Aug. 2004. Listed on NSE and BSE on May 17th 2005.

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COMPETITORS:Sharekhan. Angel broking. Motilal Oswal. Karvy share broking. ICICI Direct.

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OVERVIEW OF STOCK MARKET:A stock market, or equity market, is a private or public market for the trading of company stock and derivatives at an agreed price; these are securities listed on a stock exchange as well as those only traded privately. The size of the world stock market is estimated at about $36.6 trillion US at the beginning of October 2008. The total world derivatives market has been estimated at about $791 trillion face or nominal value,11 times the size of the entire world economy.

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MAJOR STOCK MARKET WORLDWIDE:1. SENSEX(BSE)

7. HANG SENG

2. NIFTY (NSE)

8. SHANGAI

3. NASDAQ

9. STRAITS

4. NYSE

10. CAC

5. DOW JONES

11. DAX

6. FTSE

12. NIKKEI

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IMPACT OF GLOBAL TURMOIL ON MARKET. BENCHMARK

BEFORE RECESSION

NOW

SENSEX NIFTY DOW JONES NASDAQ NIKKEI FTSE SHANGHAI

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FOREX MARKET:The foreign exchange market (currency, forex, or FX) market is where currency trading takes place. It is where banks and other official institutions facilitate the buying and selling of foreign currencies. The FX market is one of the largest and most liquid financial markets in the world, and includes trading between large banks, central banks, currency speculators, corporations, governments, and other institutions.

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DERIVATIVE MARKET:Derivatives are financial contracts, or financial instruments, whose values are derived from the value of something else (known as the underlying). The underlying on which a derivative is based can be an asset (e.g., commodities, equities (stocks), residential mortgages, commercial real estate, loans, bonds), an index (e.g., interest rates, exchange rates, stock market indices, consumer price index (CPI) — see inflation derivatives), or other items (e.g., weather conditions, or other derivatives). Credit derivatives are based on loans, bonds or other forms of credit Derivative is a product whose value is derived from the value of one or more basic variables. Underlying Asset can be Equity, Forex, commodity or any other asset.

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TYPES OF DERIVATIVES:Forwards A forward contract is a customized contract between two entities, where settlement takes place on a specific date in the future at today’s pre-agreed price.

Futures – A future is contract to buy or sell an underlying asset at a specified future date, at a specified price. These contracts are traded and settled on exchanges. Future contracts can be on individual scrip's or indices.

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Options – Options are derivative instruments where one party has a right to buy/sell the underlying while the other party has an obligation to buy/sell . The person with the right is called the buyer of the option. The person with the obligation is called the writer of the option

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TERMINOLOGIES USED:BROKER : A marketing specialist allowed to sell products of a number of companies.

CONSUS ‘AD IDEM’ : meeting of the minds – having the same understanding.

HINDU UNDIVIDED FAMILY : Consists of all persons lineally descended from a common ancestor including their wives and unmarried children. A Hindu family is presumed to be undivided unless stated to the contrary.

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INFLATION : An increase in the price of products and services over time. The main measure of inflation is the Consumer Price Index.

KARTA : Senior most male member of a Hindu Undivided Family authorized to manage the business of the family for the benefit of all its members.

KIOSK : Light open structure for public telephone, sale of newspapers, food etc.

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LIQUIDITY : Reflects how quickly an asset can be converted to cash with little or no reduction in value.

NET ASSET VALUE : Market value of the assets of a mutual fund scheme minus its liabilities

NET WORTH : Total assets minus total liabilities of an individual.

OMBUDSMAN : Official appointed to investigate complaints against a public authority. 24

WEALTH TAX : Applicable under the Wealth Tax Act, 1957, to every individual, Hindu Undivided Family and companies having net wealth exceeding Rs.15 lacs on the date of valuation.

Spot Price. Futures Price. Expiry Date. Contract Cycle. -One month -Two month -Three month

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PARTICIPANT IN STOCK MARKET:Hedgers - Reduce risk Speculators - Bet on future movements – leverage Arbitrageurs - Take advantage of discrepancy in prices

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Making Fortunes from Commodities

History Organized commodities trading started in 1875 - Bombay Cotton Trade Association The government had banned futures trading in 1975, saying excessive speculation had driven prices up. It allowed trading to resume three years later but restricted it to a few commodities. Trading in some other commodities resumed only in 1997 In 2004, Government of India allowed the Multi Commodity Exchange and the National Commodity and Derivatives Exchange Ltd. to set up new bourses with a national reach and launch online trading in a range of commodities.

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Facts - India Agriculture - 26% of GDP Agro commodities thriving Huge domestic consumption market One of the World’s largest importer of gold, edible oils Third largest producer of cotton Leading coffee / tea / sugar producer

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List of Commodities Energy Products

Bullion Products

Metals

Agricultural Products

•Crude

•Gold

•Copper

•Silver

•Tin

Arabica & robusta Coffee, Wheat, Chana, Sugar, Rice, Guar Seed, Jute Sacking, Pepper, Castor Seed, Guar gum, Raw Jute, Urad, Yellow Peas, Turmeric, Soymeal crude palm oil, Cotton, Mustard seed, Mustard oil Soybean, refined soy oilGur, Maize, Raw silk, Cocoon, Jeera, Chilly, Cashew, Cottonseed oilcake, Sesame seed, Tur, metha oil, Kapas.

Oil •Furnace Oil

•Nickel •Steel

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Market Timings Bullion/ Metals Trading: 10.00am to 12.00pm Agro Commodities: 10.00am to 5.00pm

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Major commodity exchanges Exchange

Headquarters

Commodities

MCX NCDEX

Mumbai, INDIA Mumbai, INDIA

Multi Commodity exc hange

CBOT

Chic ago, USA

CME

Chic ago, USA

Corn, Soybean, Soy Oil, Soy Meal, Rise, Wheat, Gold, Silver Cattle, Milk, Butter, Lumber

NYBOT NYMEX

New York, USA New York, USA

LME

London, UK

LIFFE IPE TOCOM SICOM SFE

Multi Commodity exc hange

Cocoa, Cotton, Coffee, Sugar Crude Oil, Natural Gas, Elec tric ity, Coal, Gold, Silver, Copper, Aluminium

Aluminium, Copper, Lead, Nickel, Zinc, Tin, Plastic s London, UK Cocoa, Robusta Coffee, Sugar, Wheat London, UK Crude Oil, Gas Oil, Natural Gas Tokyo, JAPAN Gold, Silver, Aluminium, Platinum, Kerosene, Gasoline, Crude Oil, Rubber Singapore Rubber, Coffee Sydney, Australia Wool, Cattle, Electric ity

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MCX MCX an independent and de-mutulised multi commodity exchange inaugurated in the year November 2003,has permanent recognition from Government of India for facilitating online trading, clearing and settlement operations for commodity futures markets across the country. Key shareholders of MCX include Financial Technologies (I) Ltd., State Bank of India & associates, Fidelity International, National Stock Exchange of India Ltd., National Bank for Agriculture and Rural Development, HDFC Bank, SBI Life Insurance Co. Ltd., Union Bank of India, Canara Bank, Bank of India,Bank of Baroda and CorporationBank.

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NCDEX NCDEX is a public limited company incorporated on April 23, 2003 NCDEX is a nation-level, technology driven de-mutualized on-line commodity exchange with an independent Board of Directors and professionals not having any vested interest in commodity markets Key promoted of NCDEX include ICICI Bank Limited (ICICI Bank), Life Insurance Corporation of India (LIC), National Bank for Agriculture and Rural Development (NABARD) and National Stock Exchange of India Limited (NSE). Punjab National Bank (PNB), CRISIL Limited (formerly the Credit Rating Information Services of India Limited), Indian Farmers Fertiliser Cooperative Limited (IFFCO)  and  Canara Bank   

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Trading in Commodities How it really works ….

Futures A future is contract to buy or sell an underlying asset at a specified future date, at a specified price. These contracts are traded and settled on exchanges. Future contracts can be on individual scrips or indices.

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Futures Terminology Spot Price Futures Price Expiry Date Contract Cycle

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Products Offered Online Trading Diet Odin for Customers

Offline Trading Branch/Franchise/RM places order using Dealer Odin

Clients can trade on both on MCX and NCDEX

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Brokerage Structure ONLINE

OFFLINE

Rs.500

Rs.500

Rs.10000

Rs.10000

Trading Brokerage

0.05%

0.10%

Delivery Brokerage

0.25%

0.50%

Registration fees Minimum Initial Margin

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Why trade in commodities? Driven by demand and supply True reflector of economic activity Impervious to intangibles like management quality or sentiments Not impacted by “statements” Physical settlement Internationally driven market

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Comparison of India Asset Market

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Thank you

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