Stock Markets (1).docx

Introduction Stock Market: Stock market refers to a market where securities are traded after being initially offered to the public in the primary market and/or listed on the Stock Exchange. Majority of the trading is done in the secondary market. Secondary market comprises of equity markets and the debt markets. Role of Primary Market: The primary market provides the channel for sale of new securities. Primary market provides opportunity to issuers of securities; Government as well as corporates, to raise resources to meet their requirements of investment and/or discharge some obligation. They may issue the securities at face value, or at a discount/premium and these securities may take a variety of forms such as equity, debt etc. They may issue the securities in domestic market and/or international market. Role of Secondary Market: For the general investor, the secondary market provides an efficient platform for trading of his securities. For the management of the company, Secondary equity markets serve as a monitoring and control conduit—by facilitating value-enhancing control activities, enabling implementation of incentive-based management contracts, and aggregating information (via price discovery) that guides management decisions. Comparison between Primary Market And Secondary Market: In the primary market, securities are offered to public for subscription for the purpose of raising capital or fund. Secondary market is an equity trading venue in which already existing/pre-issued securities are traded among investors. Secondary market could be either auction or dealer market. While stock exchange is the part of an auction market, Over-theCounter (OTC) is a part of the dealer market

STOCK EXCHANGE: Role Of Stock Exchange In Buying And Selling Of Shares: The stock exchanges in India, under the overall supervision of the regulatory authority, the Securities and Exchange Board of India (SEBI), provide a trading platform, where buyers and sellers can meet to transact in securities. The trading platform provided by NSE is an electronic one and there is no need for buyers and sellers to meet at a physical location to trade. They can trade through the computerized trading screens available with the NSE trading members or the internet based trading facility provided by the trading members of NSE. Demutualization Of Stock Exchanges: Demutualization refers to the legal structure of an exchange whereby the ownership, the management and the trading rights at the exchange are segregated from one another. Difference between Demutualised Exchange And Mutual Exchange: In a mutual exchange, the three functions of ownership, management and trading are concentrated into a single Group. Here, the broker members of the exchange are both the owners and the traders on the exchange and they further manage the exchange as well. This at times can lead to conflicts of interest in decision making. A demutualised exchange, on the other hand, has all these three functions clearly segregated, i.e. the ownership, management and trading are in separate hands. STOCK TRADING: Screen Based Trading: The trading on stock exchanges in India used to take place through open outcry without use of information technology for immediate matching or recording of trades. This was time consuming and inefficient. This imposed limits on trading volumes and efficiency. In order to provide efficiency, liquidity and transparency, NSE introduced a nationwide, on-line, fully automated screen based trading system (SBTS) where a member can punch into the computer the

quantities of a security and the price at which he would like to transact, and the transaction is executed as soon as a matching sale or buy order from a counter party is found. Neat: NSE is the first exchange in the world to use satellite communication technology for trading. Its trading system, called National Exchange for Automated Trading (NEAT), is a state of-the-art client server based application. At the server end all trading information is stored in an in memory database to achieve minimum response time and maximum system availability for users. It has uptime record of 99.7%. For all trades entered into NEAT system, there is uniform response time of less than one second. Process To Place Orders With The Broker: You may go to the broker’s office or place an order on the phone/internet or as defined in the Model Agreement, which every client needs to enter into with his or her broker. Process To An Investor Get Access To Internet Based Trading Facility: There are many brokers of the NSE who provide internet based trading facility to their clients. Internet based trading enables an investor to buy/sell securities through internet which can be accessed from a computer at the investor’s residence or anywhere else where the client can access the internet. Investors need to get in touch with an NSE broker providing this service to avail of internet based trading facility. Contract Note: Contract Note is a confirmation of trades done on a particular day on behalf of the client by a trading member. It imposes a legally enforceable relationship between the client and the trading member with respect to purchase/sale and settlement of trades. It also helps to settle disputes/claims between the investor and the trading member. It is a prerequisite for filing a complaint or arbitration proceeding against the trading member in case of a dispute. A valid contract note should be in the prescribed form, contain the details of trades, stamped with requisite value and duly signed by the authorized signatory. Contract notes are kept in duplicate, the trading member and the client should keep one copy each. After verifying the details

contained therein, the client keeps one copy and returns the second copy to the trading member duly acknowledged by him. Details Are Required To Be Mentioned On The Contract Note Issued By The Stock Broker: A broker has to issue a contract note to clients for all transactions in the form specified by the stock exchange. The contract note inter-alia should have following: 1. Name, address and SEBI Registration number of the Member broker 2. Name of partner/proprietor/Authorised Signatory. 3. Dealing Office Address/Tel. No./Fax no., Code number of the member given by the Exchange. 4. Contract number, date of issue of contract note, settlement number and time period for settlement. 5. Constituent (Client) name/Code Number. 6. Order number and order time corresponding to the trades. 7. Trade number and Trade time. 8. Quantity and kind of Security bought/sold by the client 9. ß Brokerage and Purchase/Sale rate. 10. Service tax rates, Securities Transaction Tax and any other charges levied by the broker. 11. Appropriate stamps have to be affixed on the contract note or it is mentioned that the consolidated stamp duty is paid. 12. Signature of the Stock broker/Authorized Signatory. Maximum Brokerage That A Broker Can Charge: The maximum brokerage that can be charged by a broker from his clients as commission cannot be more than 2.5% of the value mentioned in the respective purchase or sale note.

The Reasons For Trade On A Stock Exchange: An investor does not get any protection if he trades outside a stock exchange. Trading at the exchange offers investors the best prices prevailing at the time in the market, lack of any counter-party risk which is assumed by the clearing corporation, access to investor grievance and redressal mechanism of stock exchanges, protection upto a prescribed limit, from the Investor Protection Fund etc. Points To Be Kept In Mind Before Investing In Stock Market: 1. Ensure that the intermediary (broker/sub-broker) has a valid SEBI registration certificate. 2. Enter into an agreement with your broker/sub-broker setting out terms and conditions clearly 3. Ensure that you give all your details in the ‘Know Your Client’ form 4. Ensure that you read carefully and understand the contents of the ‘Risk Disclosure Document’ and then acknowledge it. 5. Insist on a contract note issued by your broker only, for trades done each day 6. Ensure that you receive the contract note from your broker within 24 hours of the transaction. 7. Ensure that the contract note contains details such as the broker’s name, trade time and number, transaction price, brokerage, service tax, securities transaction tax etc. and is signed by the Authorised Signatory of the broke 8. To cross check genuineness of the transactions, log in to the NSE website (www.nseindia.com) and go to the ‘trade verification’ facility extended by NSE. Issue account payee cheques/demand drafts in the name of your broker only, as it appears on the contract note/SEBI registration certificate of the broker. 9. While delivering shares to your broker to meet your obligations, ensure that the delivery instructions are made only to the designated account of your broker only.

10. Insist on periodical statement of accounts of funds and securities from your broker. Cross check and reconcile your accounts promptly and in case of any discrepancies bring it to the attention of your broker immediately 11. Please ensure that you receive payments/deliveries from your broker, for the transactions entered by you, within one working day of the payout date. 12. Ensure that you do not undertake deals on behalf of others or trade on your own name and then issue cheques from a family members’/ friends’ bank accounts. 13. Similarly, the Demat delivery instruction slip should be from your own Demat account, not from any other family members’/friends’ accounts. 14. Do not sign blank delivery instruction slip(s) while meeting security payin obligation. 15. No intermediary in the market can accept deposit assuring fixed returns. Hence do not give your money as deposit against assurances of returns 16. ‘Portfolio Management Services’ could be offered only by intermediaries having specific approval of SEBI for PMS. Hence, do not part your funds to unauthorized persons for Portfolio Management 17. Delivery Instruction Slip is a very valuable document. Do not leave signed blank delivery instruction slip with anyone. While meeting pay in obligation make sure that correct ID of authorised intermediary is filled in the Delivery Instruction Form 18. Be cautious while taking funding form authorised intermediaries as these transactions are not covered under Settlement Guarantee mechanisms of the exchange 19. Insist on execution of all orders under unique client code allotted to you. Do not accept trades executed under some other client code to your account. 20. In the event of any discrepancies/disputes, please bring them to the notice of the broker immediately in writing (acknowledged by the broker) and ensure their prompt rectification 21. In case of sub-broker disputes, inform the main broker in writing about the dispute at the earliest. If your broker/sub-broker does not resolve your complaints within a reasonable period please bring it to the attention of the ‘Investor Services Cell’ of the NSE. 22. ß While lodging a complaint with the ‘Investor Grievances Cell’ of the NSE, it is very important that you submit copies of all relevant documents like contract notes, proof of

payments/delivery of shares etc. along with the complaint. Remember, in the absence of sufficient documents, resolution of complaints becomes difficult. 23. Familiarise yourself with the rules, regulations and circulars issued by stock exchanges/SEBI before carrying out any transaction

Precautions Must One Take Before Investing In Stock Market: Here are some useful pointers to bear in mind before you invest in the markets: 1. Make sure your broker is registered with SEBI and the exchanges and do not deal with unregistered intermediaries. 2. Ensure that you receive contract notes for all your transactions from your broker within one working day of execution of the trades. 3. All investments carry risk of some kind. Investors should always know the risk that they are taking and invest in a manner that matches their risk tolerance. 4. Do not be misled by market rumours, luring advertisement or ‘hot tips’ of the day. 5. Take informed decisions by studying the fundamentals of the company. Find out the business the company is into, its future prospects, quality of management, past track record etc Sources of knowing about a company are through annual reports, economic magazines, and databases available with vendors or your financial advisor. 6. If you’re financial advisor or broker advises you to invest in a company you have never heard of, be cautious. Spend some time checking out about the company before investing. 7. Do not be attracted by announcements of fantastic results/news reports, about a company. Do your own research before investing in any stock. 8. ß Do not be attracted to stocks based on what an internet website promotes, unless you have done adequate study of the company. 9. Investing in very low priced stocks or what are known as penny stocks does not guarantee high returns. 10. Be cautious about stocks which show a sudden spurt in price or trading activity. 11. Any advise or tip that claims that there are huge returns expected, especially for acting quickly, may be risky and may to lead to losing some, most, or all of your money

Stock markets refer to a market place where investors can buy and sell stocks. The price at which each buying and selling transaction takes is determined by the market forces (i.e. demand and supply for a particular stock).In other words, a stock market is a market where company stock is traded between people who want to buy the stock and people who want to sell stock. Stock is just a slice of a company/organization, if you own over 50% of the stock then you own a company Let us take an example for a better understanding of how market forces determine stock prices. ABC Co. Ltd. enjoys high investor confidence and there is an anticipation of an upward movement in its stock price. More and more people would want to buy this stock (i.e. high demand) and very few people will want to sell this stock at current market price (i.e. less supply). Therefore, buyers will have to bid a higher price for this stock to match the ask price from the seller which will increase the stock price of ABC Co. Ltd. On the contrary, if there are more sellers than buyers (i.e. high supply and low demand) for the stock of ABC Co. Ltd. in the market, its price will fall down In earlier times, buyers and sellers used to assemble at stock exchanges to make a transaction but now with the dawn of IT, most of the operations are done electronically and the stock markets have become almost paperless. Now investors don’t have to gather at the Exchanges, and can trade freely from their home or office over the phone or through Internet. A stock market is made up of several components Stock exchanges are key companies that allow the stock market to work as efficiently as it does. They list shares prices for thousands of companies, they list the bid/ask prices of shares and enable quick electronic transfers of shares between people. Some stock exchanges that might have heard of include NASDAQ, LSE (London stock exchange) and the NYSE (New York stock exchange). Companies are vital for a stock market to work! A company must be listed as a PLC (public listed company) for people to trade it's shares at a stock market. To be listed as a PLC a company must meet strict financial requirements. Brokers are the middle men between the stock exchange and the stock buyer (i.e. you). They fetch the buy and sell prices of stocks from the stock exchange and relay them to the purchasers. It is a legal requirement that you open a brokerage account to buy or sell stocks Without people who trade stock (buyers and sellers) a stock market would not work. Buyers can range individuals sitting at home on their PC to huge multi million dollar investment funds.

History of the Indian Stock Market - The Origin One of the oldest stock markets in Asia, the Indian Stock Markets have a 200 years old history. 18th

East India Company was the dominant institution and by end of the century, busuness in

Century

its loan securities gained full momentum

1830's

Business on corporate stocks and shares in Bank and Cotton presses started in Bombay. Trading list by the end of 1839 got broader

1840's

Recognition from banks and merchants to about half a dozen brokers

1850's

Rapid development of commercial enterprise saw brokerage business attracting more people into the business

1860's

The number of brokers increased to 60

1860-61

The American Civil War broke out which caused a stoppage of cotton supply from United States of America; marking the beginning of the "Share Mania" in India

1862-63

The number of brokers increased to about 200 to 250

1865

A disastrous slump began at the end of the American Civil War (as an example, Bank of Bombay Share which had touched Rs. 2850 could only be sold at Rs. 87)

The depression witnessed after the Independence led to closure of a lot of exchanges in the country. Lahore E stock Exchange was closed down after the partition of India, and later on merged with the Delhi Stock Exchange. Bangalore Stock Exchange Limited was registered in 1957 and got recognition only by 1963. Most of the other Exchanges were in a miserable state till 1957 when they applied for recognition under Securities Contracts (Regulations) Act, 1956. The Exchanges that were recognized under the Act were:

Many more stock exchanges were established during 1980's, namely: 1. Cochin Stock Exchange (1980) 2. Uttar Pradesh Stock Exchange Association Limited (at Kanpur, 1982) 3. Pune Stock Exchange Limited (1982) 4. Ludhiana Stock Exchange Association Limited (1983) 5. Gauhati Stock Exchange Limited (1984) 6. Kanara Stock Exchange Limited (at Mangalore, 1985) 7. Magadh Stock Exchange Association (at Patna, 1986) 8. Jaipur Stock Exchange Limited (1989) 9. Bhubaneswar Stock Exchange Association Limited (1989) 10. Saurashtra Kutch Stock Exchange Limited (at Rajkot, 1989) 11. Vadodara Stock Exchange Limited (at Baroda, 1990) 12. Coimbatore Stock Exchange 13. Meerut Stock Exchange At present, there are twenty one recognized stock exchanges in India which does not include the Over The Counter Exchange of India Limited (OTCEI) and the National Stock Exchange of India Limited (NSEIL). Indian stock exchange allows a member broker to perform following activities.Act as an agent,Buy and sell securities for his clients and charge commission for the same,Act as a trader or dealer as a principal,Buy and sell securities on his own account and risk Over The Counter Exchange of India (OTCEI) Traditionally, trading in Stock Exchanges in India followed a conventional style where people used to gather at the Exchange and bids and offers were made by open outcry.This age-old trading mechanism in the Indian stock markets used to create many functional inefficiencies. Lack of liquidity and transparency, long settlement periods and benami transactions are a few examples that adversely affected investors. In order to overcome these inefficiencies, OTCEI was incorporated in 1990 under the Companies Act 1956. OTCEI is the first screen based nationwide stock exchange in India created by Unit Trust of India, Industrial Credit and Investment Corporation of India, Industrial Development Bank of India, SBI Capital Markets, Industrial Finance Corporation of India, General Insurance Corporation and its subsidiaries and Can Bank Financial Services.

Advantages of OTCEI 1. Greater liquidity and lesser risk of intermediary charges due to widely spread trading mechanism across India 2. The screen-based scrip less trading ensures transparency and accuracy of prices 3. Faster settlement and transfer process as compared to other exchanges 4. Shorter allotment procedure (in case of a new issue) than other exchanges National Stock Exchange In order to lift the Indian stock market trading system on par with the international standards. On the basis of the recommendations of high powered Pherwani Committee, the National Stock Exchange was incorporated in 1992 by Industrial Development Bank of India, Industrial Credit and Investment Corporation of India, Industrial Finance Corporation of India, all Insurance Corporations, selected commercial banks and others.NSE provides exposure to investors in two types of markets, namely: 1. Wholesale debt market 2. Capital market Wholesale Debt Market - Similar to money market operations, debt market operations involve institutional investors and corporate bodies entering into transactions of high value in financial instruments like treasury bills, government securities, commercial papers etc. Capital market - provide for the buying and selling of long term debt or equity backed securities. When they work well, the capital markets channel the wealth of savers to those who can put it to long term productive use, such as companies or governments making long term investments. [1] Financial regulators, such as the UK's Financial Services Authority (FSA) or the U.S. Securities and Exchange Commission (SEC), oversee the capital

markets in their designated jurisdictions to ensure that investors are protected against fraud, among other duties.21st century capital markets are almost invariably hosted on computer based Electronic trading systems; most can be accessed only by entities within the financial sector or the treasury departments of governments and corporations, but some can be accessed directly by the public. There are many thousands of such systems, most only serving only small parts of the overall capital markets. Entities hosting the systems include stock exchanges, investment banks, and government departments. Physically the systems are hosted all over the world, though they tend to be concentrated in financial centers like London, New York, and Hong Kong. Capital markets are defined as markets in which money is provided for periods longer than a year. A key division within the capital markets is between the primary markets and secondary markets. In primary markets, new stock or bond issues are sold to investors, often via a mechanism known as underwriting. The main entities seeking to raise long term funds on the primary capital markets are governments (which may be municipal, local or national) and business enterprises (companies). Governments tend to issue only bonds, whereas companies often issue either equity or bonds. The main entities purchasing the bonds or stock include pension funds, hedge funds, sovereign wealth funds, and less commonly wealthy individuals and investment banks trading on their own behalf. In the secondary markets, existing securities are sold and bought among investors or traders, usually on a securities exchange, overthe-counter, or elsewhere. The existence of secondary markets increases the willingness of investors in primary markets, as they know they are likely to be able to swiftly cash out their investments if the need arises.A second important division falls between the stock markets (for equity securities, where investors acquire ownership of companies) and the bond markets (where investors become creditors). Trading at NSE 1. Fully automated screen-based trading mechanism 2. Strictly follows the principle of an order-driven market 3. Trading members are linked through a communication network 4. This network allows them to execute trade from their offices 5. The prices at which the buyer and seller are willing to transact will appear on the screen 6. When the prices match the transaction will be completed 7. A confirmation slip will be printed at the office of the trading member

Advantages of trading at NSE 1. Integrated network for trading in stock market of India 2. Fully automated screen based system that provides higher degree of transparency 3. Investors can transact from any part of the country at uniform prices 4. Greater functional efficiency supported by totally computerized network

Initial Public Offering An initial public offering (IPO) or stock market launch is the first sale of stock by a company to the public. It is a type of public offering. As the result of an initial public offering, a private company turns into a public company. The process is used by companies to raise expansion capital and become publicly traded enterprises. Many companies that undertake an IPO also request the assistance of an investment banking firm acting in the capacity of an underwriter to help them correctly assess the value of their shares, that is, the share price.In 1602, the Dutch East India Company was the first company in the world to issue stocks and bonds in an initial public offering. Reasons for listing When a company lists its securities on a public exchange, the money paid by investors for the newly issued shares goes directly to the company (in contrast to a later trade of shares on the exchange, where the money passes between investors). An IPO, therefore, allows a company to tap a wide pool of investors to provide itself with capital for future growth, repayment of debt or working capital. A company selling common shares is never required to repay the capital to investors.Once a company is listed, it is able to issue additional common shares via a secondary offering, thereby again providing itself with capital for expansion without incurring any debt. This ability to quickly raise large amounts of capital from the market is a key reason many companies seek to go public. There are several benefits to being a public company, namely:

1.

Bolstering and diversifying equity base

2.

Enabling cheaper access to capital

3.

Exposure, prestige and public image

4.

Attracting and retaining better management and employees through liquid equity participation

5.

Facilitating acquisitions

6.

Creating multiple financing opportunities: equity, convertible debt, cheaper bank loans, etc.

Procedure IPOs generally involve one or more investment banks known as "underwriters". The company offering its shares, called the "issuer", enters a contract with a lead underwriter to sell its shares to the public. The underwriter then approaches investors with offers to sell these shares.The sale (allocation and pricing) of shares in an IPO may take several forms. Common methods include: 1.

Best efforts contract

2.

Firm commitment contract

3.

All-or-none contract

4.

Bought deal A large IPO is usually underwritten by a "syndicate" of investment

banks led by one or more major investment banks (lead underwriter). Upon selling the shares, the underwriters keep a commission based on a percentage of the value of the shares sold (called the gross spread). Usually, the lead underwriters, i.e. the underwriters selling the largest proportions of the IPO, take the highest commissions—up to 8% in some cases.Multinational IPOs may have many syndicates to deal with differing legal requirements in both the issuer's domestic market and other regions. For example, an issuer based in the E.U. may be represented by the main selling syndicate in its domestic market, Europe, in addition to separate syndicates or selling groups for US/Canada and for Asia. Usually, the lead underwriter in the main selling group is also the lead bank in the other selling groups.Because of the wide array of legal requirements and because it is an expensive process, IPOs typically involve one or more law

firms with major practices in securities law, such as the Magic Circle firms of London and the white shoe firms of New York City.Public offerings are sold to both institutional investors and retail clients of underwriters. A licensed securities salesperson (Registered Representative in the USA and Canada ) selling shares of a public offering to his clients is paid a commission from their dealer rather than their client. In cases where the salesperson is the client's advisor it is notable that the financial incentives of the advisor and client are not aligned.In the US sales can only be made through a final prospectus cleared by the Securities and Exchange Commission.Investment dealers will often initiate research coverage on companies so their Corporate Finance departments and retail divisions can attract and market new issues.The issuer usually allows the underwriters an option to increase the size of the offering by up to 15% under certain circumstance known as the green shoe or overallotment option. Largest IPO’s 1. Agricultural Bank of China US$22.1 billion (2010) 2. Industrial and Commercial Bank of China US$21.9 billion (2006) 3. American International Assurance US$20.5 billion (2010) 4. Visa Inc. US$19.7 billion (2008) 5. General Motors US$18.15 billion (2010) 6. Face book, Inc. US$16 billion (2012) Value of IPO’s The US last topped the IPO league tables in 2008; then east overtook west with China (Shanghai, Shenzhen and Hong Kong) raising $73 billion (almost double the amount of money raised on the New York Stock Exchange and Nasdaq combined) up to the end of November 2011. The Hong Kong Stock Exchange raised 30.9 billion in 2011 as the top course for the third year in a row, while New York raised 30.7 billion.

Issue Price A company that is planning an IPO appoints lead managers to help it decide on an appropriate price at which the shares should be issued. There are two ways in

which the price of an IPO can be determined: either the company, with the help of its lead managers, fixes a price (fixed price method) or the price is arrived at through the process of book building.Not all IPOs are eligible for delivery settlement through the DTC system, which would then either require the physical delivery of the stock certificates to the clearing agent bank's custodian, or a delivery versus payment (DVP) arrangement with the selling group brokerage firm. 2.1 PROFILE OF STOCK MARKET Stock Broker A stock broker is a regulated professional broker who buys and sells shares and other securities through market makers or Agency Only Firms.Similar roles of a stock broker Roles similar to that of a stockbroker include investment advisor, and financial advisor. A stockbroker may or may not be also an investment advisor, and vice versa.Acting as a principalStockbrokers exclusively trade on their own behalf, as a principal, speculating that a share or other financial instrument will increase or decline in price. In such cases the term broker makes little sense and the individuals or firms trading in principal capacity sometimes call themselves dealers, stock traders or simply traders List of top stock brokers in India: 1.

India Infoline

2. Kotak Securities Ltd. 3. Share Khan 4.

Indiabulls

5. Motilal Oswal 6. Bajaj Capital 7. Angel Broking 8. Reliance Money

INDIA INFOLINE The IIFL (India Infoline) group, comprising the holding company, India Infoline Ltd (NSE: INDIAINFO, BSE: 532636) and its subsidiaries, is one of India’s premier providers of financial services.IIFL offers advice and execution platform for the entire range of financial services covering products ranging from Equities and derivatives, Commodities, Wealth management, Asset management, Insurance, Fixed deposits, Loans, Investment Banking, Gold bonds and other small savings instruments. Equities our core offering, gives us a leading market share in both retail and institutional segments. Over a million retail customers rely on our research, as do leading FIIs and MFs that invest billions.Private Wealth Management services cater to over 2500 families who have trusted us with close to Rs 25,000 crores ($ 5bn) of assets for advice. Investment Banking services are for corporate looking to raise capital. Our forte is Equity Capital Markets, where we have executed several marquee transactions. Credit & Finance focuses on secured mortgages and consumer loans. Our high quality loan book of over Rs. 6,200 crores ($ 1.2bn) is backed by strong capital adequacy of approximately 20%. IIFL Mutual Fund made an impressive beginning in FY12, with lowest charge Nifty ETF. Other products include Fixed Maturity Plans. Life Insurance, Pension and other Financial Products, on open architecture complete our product suite to help customers build a balanced portfolio. IIFL has received membership of the Colombo Stock Exchange becoming the first foreign broker to enter Sri Lanka. IIFL owns and manages the website,www.indiainfoline.com, which is one of India’s leading online destinations for personal finance, stock markets, economy and business. IIFL has been awarded the ‘Best Broker, India’ by Finance Asia and the ‘Most improved brokerage, India’ in the Asia Money polls. India Infoline was also adjudged as ‘Fastest Growing Equity Broking House - Large firms’ by Dun & Bradstreet.Our research is available not just over the Internet but also on international wire

services like Bloomberg, Thomson First Call and Internet Securities besides others where it is amongst one of the most read Indian brokers.IIFL is a listed company with a consolidated group networth of about Rs 1,800 crores. The income and net profit during FY2010-11 were Rs. 14.7 bn and Rs. 2.1 bn respectively. The Group has a consistent and uninterrupted track record of profits and dividends since its listing in 2005. CORE MANAGEMENT TEAM Chairman, India Infoline Ltd.

Nirmal Jain

Managing Director, India Infoline Ltd.

R. Venkataraman

Independent Director, India Infoline Ltd.

Nilesh Vikamsey

Independent Director, India Infoline Ltd.

Kranti Sinha

Independent Director, India Infoline Ltd.

A. K. Purwar

Independent Director, India Infoline Ltd.

Sunil Kaul

KOTAK SECURITIES

Originally established in 1994, Kotak Securities is a subsidiary of Kotak Mahindra Bank, which services more than 7.4 lakh customers. The firm has a wide network of more than 1400 branches, franchisees representative offices, and satellite offices across 448 cities in India and offices in New York, London, Dubai, Mauritius and Singapore. We process more than 400000 trades a day which is much higher than some of the renowned international brokers.The company is a corporate member of both The Bombay Stock Exchange (BSE) and The National Stock Exchange of India (NSE). Our operations include stock broking services for trading in stock markets through branches & internet and distribution of various financial products including investments in IPOs, Mutual Funds and Currency Derivatives. Currently, Kotak Securities is one of the largest broking houses in India with substantial geographical reach to Asia Pacific, Europe, Middle East and America. Kotak Securities Limited has Rs. 1,202 crore of Assets Under Management (AUM) as of 31st Dec, 011.

Research Expertise: We specialise in Fundamental and Technical analysis backed by a team of highly trained and qualified individuals.Our full-fledged research division is involved in Macro Economic studies, Sectorial research and Company Specific Equity Research which publishes in-depth stock market analysis. This is combined with a strong and well networked sales force which helps deliver current and up to date market information and news.We are also a depository participant with National Securities Depository Limited (NSDL) and Central Depository Services Limited (CDSL). By being a stock broker and depositary participant, we provide dual benefit in our services wherein the investors can avail our stock broking services for executing the transactions and the depository services for settling them. Our Portfolio Management Service comes as an answer to those who would like to grow exponentially on the crest of the stock market, with the backing of an expert.

INNOVATORS: 1. We have been the pioneers in providing many products and services which have now become industry standards for stock broking in India. Some of them include: 2. Mobile stock trading application to keep track of your investments even on the go 3. Facility of Margin Finance to the customers for online stock trading 4. Investing in IPOs and Mutual Funds on the phone 5. SMS alerts before execution of depository transactions 6. Auto Invest - A systematic investing plan in Equities and Mutual funds 7. Provision of margin against securities automatically against shares in your Demat account AWARDS 1. UTI MF - CNBC TV18 Financial Advisor Awards - Best Performing Equity Broker (National) for the year 2009 2. Best Brokerage Firm in India by Asia money in 2009, 2008, 2007 & 2006 3. Best Performing Equity Broker in India - CNBC Financial Advisor Awards 2008 4. Avaya Customer Responsiveness Awards (2007 & 2006) in Financial Services Sector 5. The Leading Equity House in India in Thomson Excel Surveys Awards for the year 2007 6. Euro money Award (2007 & 2006) - Best Provider of Portfolio Management: Equities 7. Euro money Award (2005)-Best Equities House In India 8. Finance Asia Award (2005)-Best Broker In India 9. Finance Asia Award (2004)- India's best Equity House SHAREKHAN

Share khan is India’s leading online retail broking house. Launched on February 8, 2000 as an online trading portal, Sharekhan has today a pan-India presence with over 1,529 outlets serving 950,000 customers across 450 cities. It also has international presence through its branches in the UAE and Oman. Sharekhan offers services like portfolio management, trade execution in equities, futures & options, commodities, and distribution of mutual funds, insurance and structured products. These services are backed by quality investment advice from an experienced research team which offers investment and trading ideas based on fundamental and technical research respectively, market related news, statistical information on equities, commodities, mutual funds, IPOs and much more. Sharekhan is a member of the Bombay Stock Exchange, the National Stock Exchange and the country’s two leading commodity exchanges, the NCDEX and MCX. Sharekhan is also registered as a depository participant with National Securities Depository and Central Depository Services. Sharekhan has set category leadership through pioneering initiatives like Trade Tiger, an Internet-based executable application that emulates a broker terminal besides providing information and tools relevant to day traders. Its second initiative, First Step, is targeted at empowering the first-time investors. Sharekhan has also set its global footprint through the “India First” initiative, a series of seminars conducted by Sharekhan to help the non-resident Indians participate and benefit from the huge investment opportunities in India. TOP MANAGEMENT OF SHAREKHAN LTD CEO

Tarun Shah

Director, Product Development

Jaideep Arora

Director, Operations, Finance and Legal

Shankar Vailaya

Functions

INDIABULLS In middle of 1999, when e-commerce was just about starting in India, Sameer Gehlaut and his close IIT Delhi friend Rajiv Rattan got together and bought a defunct securities company with a NSE membership and started offering brokerage services. A Few months later, their friend Saurabh Mittal also joined them. By December 1999,

the company embarked on its journey to build one of the first online platforms in India for offering internet brokerage services. In January 2000, the 3 founders incorporated Indiabulls Financial Services and made it as the flagship company.In mid 2000, Indiabulls Financial Services received venture capital funding from Mr L.N. Mittal & Mr Harish Fabiani. In late 2000, Indiabulls Securities, a subsidiary of Indiabulls Financial Services started offering online brokerage services and simultaneously opened physical offices across India. By 2003, Indiabulls securities had established a strong pan India presence and client base through its offices and on the internet.In September 2004, Indiabulls Financial Services went public with an IPO at Rs 19 a share. In late 2004, Indiabulls Financial Services started its financing business with consumer loans. In March 2005, Indiabulls Properties Private Ltd, a subsidiary of Indiabulls Financial Services, participated in government auction of Jupiter Mills, a defunct 11 acre textile mill owned by NTC in Lower Parel, Mumbai. Indiabulls Properties private Ltd won the mill in auction and that purchase started Indiabulls real estate business. A few months later, Indiabulls Real Estate company pvt ltd bought Elphinstone mill in Lower Parel, another textile mill auctioned by NTC. With real estate business gaining size, Indiabulls Financial Services demerged the real estate business under Indiabulls Real Estate and each shareholder of Indiabulls Financial Services received additional share of Indiabulls Real Estate through the demerger. Subsequently, India bulls Financial Services also demerged Indiabulls Securities and each shareholder of India bulls Financial Services also received a share of Indiabulls Securities.In year 2007, India bulls Real Estate incorporated a 100% subsidiary, Indiabulls Power, to build power plants and started work on building Nashik & Amrawati thermal power plants. Indiabulls Power went public in September 2009.Today, Indiabulls Group has a net worth of Rs 19,320 Crore & has a strong presence in important sectors like financial services, power & real estate through independently listed companies and Indiabulls Group continues its journey of building businesses with strong cash flows. INDIABULLS Group MANAGEMENT TEAM Vice Chairman

Mr Rajiv Rattan

Vice Chairman

Mr Saurabh Mittal

Group Spokesperson

Mr Gagan Banga

Group President

Mr Ashok Kacker

Group CLO

Mr Saket Bahuguna

Group CFO

Mr Ashok Sharma

Group Director

Mr Ajit Mittal

Group Director

Mr Gurbans Singh

Group CIO

Mr Tejinderpal Singh Miglani

MOTILAL OSWAL Motilal Oswal Securities Ltd. (MOSL) was founded in 1987 as a small sub-broking unit, with just two people running the show. Focus on customer-first attitude, ethical and transparent business

practices,

respect

for professionalism, research-based value investing and

implementation of cutting-edge technology have enabled us to blossom into an over 1500 member team.Today we are a well diversified financial services firm offering a range of financial products and services such as Wealth Management, Retail Broking and Distribution, Institutional Broking, Asset Management, Investment Banking, Private Equity, Commodity Broking and Principal Strategies. We have a diversified client base that includes retail customers (including High Net worth Individuals), mutual funds, foreign institutional investors, financial institutions and corporate clients. We are headquartered in Mumbai and as of March 31st, 2012, had a network spread over 552 cities and towns comprising 1,579 Business Locations operated by our Business Partners and us. As on March 31st, 2012, we had 738,156 registered customers.

Research is the solid foundation on which Motilal Oswal Securities’ advice is based. Almost 10% of revenue is invested on equity research and we hire and train the best resources to become our advisors. At present we have an expert team of Research Analysts researching 25+ sectors and commodities. From a fundamental, technical and derivatives research perspective, Motilal Oswal`s research reports have received wide coverage in the media ). Our consistent efforts towards quality equity research have reflected in an increase in the ratings and rankings across various categories in the Asia Money Brokers Poll over the years.Our unique Wealth Creation Study, authored by Mr. Raamdeo Agrawal, Joint Managing Director, is now in its 17th year. Investors keenly await this annual study for the wealth of information it has on the companies that created wealth during the preceding five years.

List of Board of Directors of Motilal Oswal Securities Ltd. (MOSL) Chairman & Managing Director

Motilal Oswal

Joint Managing Director

Raamdeo Agrawal

Managing Director- Institutional Equites &

Navin Agarwal

Investment Banking Associate Director

Sameer Kamath

Associate Director - Head Marketing

Ramnik Chhabra

Associate Director - Head HR & Admin

Sudhir Dhar

BAJAJ CAPITAL

In a world full of 'ready-to-give-free-of-cost-advice' people it is necessary that you choose the one that works in your interest. You need help from a professional investment advisor, who sees investments from your perspective. That's what we do.

WE CREATE WEALTH: 1.

45 years of experience as Investment Advisors and Financial Planners

2.

We give you impartial, research-based and need-based advice

3.

We offer a wide range of financial products and services

4.

Personalized wealth management advice: We offer investment guidance and portfolio planning.

5.

Prompt, courteous service, 24 x 7 online accessibility- www.bajajcapital.com

6.

Countrywide network of over 200 branches

7.

Strong team of qualified and experienced professionals including CAs, MBAs, MBEs, CFPs, CSs, Insurance Experts, Legal Experts and others

8.

SEBI-Approved Category I Merchant Bankers

9.

Group Co BCIBL is an IRDA-licensed Direct Insurance Broker

While choosing an advisor, consider the following factors: 1.

YOUR ADVISOR MUST BE AN ORGANISATION:

Your advisor needs to outlive the life of your investments. This is possible only if your advisor is a company or institution rather than an individual advisor. Also a company has better resources, research expertise, standardized processes and qualified staff to render quality advice and services. It is much safer to deal with a company that has a reputation for honesty, integrity, transparency and ethical dealings than with an individual. 2.

YOUR ADVISOR MUST BE EXPERINECED & REPUTED:

Find out the background and certifications of the firm you want to appoint as your investment advisor. The more the experience of your advisor, the better it is. Find out about the advisor's clientele. This will give you a better idea of what to expect as a client— and learning about their security guarantees will give you confidence that you're making the right choice.

3.

MUST HAVE AN ALL-INDIA PRESENCE:

In today's dynamic world, you never know which place or city you might be located at, in the future; an advisor with a national footprint will ensure that you do not miss his advice and service, irrespective of your location. 4.

KNOW THE PRODUCTS AND SERVICES:

Decide what you need. Then choose an invest advisory firm that caters to your needs and matches your expectations. Know the breadth and depth of the investment firm's products, the financial services it offers and the planning process it involves to make your wealth grow. 5.

MUST HAVE A RESEARCH DEPARTMENT:

This ensures that you get quality advice on time and are update about the market trends and changes so that accordingly you can review your portfolio. 6.

MUST HAVE AN ONLINE INVESTMENT PLATFORM:

Tech savvy investors will find this attribute very attractive as they will be able to keep track of and manage their investments at the click of a mouse from the comfort of their office or home, at any point of time. Their Vision: To be the most preferred financial planning and investment advisory company in India by providing consumers with informed choices of lasting value, create wealth for them to make their tomorrow better than today. Their Mission, aims and objectives: Mission Statement Bajaj Capital aims to be the most useful, reliable and efficient provider of Financial Services. It is our continuous endeavour to be a trustworthy advisor to our clients, helping them achieve their financial goals.

Aims 1.

To serve our clients with utmost dedication and integrity so that we exceed their expectations and build enduring relationships.

2.

To offer unparalleled quality of service through complete knowledge of products, constant innovation in services and use of the latest technology.

3.

To always give honest and unbiased financial advice and earn our cilent's everlasting trust.

4.

To serve the community by educating individuals on the merits of Financial Planning and in turn help shape a financially strong society.

5.

To create value for all stake holders by ensuring profitable growth.

6.

To build an amicable environment that accords respect to every individual and permits their personal growth.

7.

To utilize the power of teamwork to function as a family and build a seamless organization.

List of Board of Directors of Bajaj Capital Chairman

Mr. K.K. Bajaj

Vice Chairman & Managing Director

Mr. Rajiv Deep Bajaj

Managing Director

Mr. Sanjiv Bajaj

Group CEO & Director

Mr. Anil Chopra

ANGEL BROKING Angel Broking's tryst with excellence in customer relations began in 1987. Today, Angel has emerged as one of the most respected Stock-Broking and Wealth Management Companies in India. With its unique retail-focused stock trading business model, Angel is committed to providing ‘Real Value for Money’ to all its clients.The Angel Group is a

member of the Bombay Stock Exchange (BSE), National Stock Exchange (NSE) and the two leading Commodity Exchanges in the country: NCDEX & MCX. Angel is also registered as a Depository Participant with CDSL. Our Business 1.

Equity Trading

2.

Commodities

3.

Portfolio Management Services

4.

Mutual Funds

5.

Life Insurance

6.

IPO

7.

Depository Services

8.

Investment Advisory

Angel Group 1.

Angel Broking Ltd.

2.

Angel Commodities Broking Ltd.

3.

Angel Securities Ltd.

Vision: To provide best value for money to investors through innovative products, trading/investments strategies, state of the art technology and personalized service. Motto To have complete harmony between quality-in-process and continuous improvement to deliver exceptional service that will delight our Customers and Clients. CRM Policy : Customer is King “A Customer is the most Important Visitor on our premises. He is not dependent on us, but we are dependent on him. He is not an interruption in our work. He is the purpose of it. He is not an

outsider in our business. He is part of it. We are not doing him a favor by serving him. He is doing us a favor by giving us an opportunity to do so.”

- Mahatma Gandhi Business Philosophy 1.

Ethical practices & transparency in all our dealings

2.

Customers interest above our own

3.

Always deliver what we promise

4.

Effective cost management

Quality Assurance Policy We are committed to providing world-class products and services which exceed the

expectations

of

our

customers,

achieved

by

teamwork

and

a

continuous improvement. List of Board of Directors of Angel Group Founder, Chairman

Mr. Dinesh Thakkar

& Managing Director Managing Director -

Mr. Lalit Thakkar

Institutional broking Chief Strategy Officer

Mr. Amit Majumdar

Executive Director

Mr. Vinay Agrawal

Equity Broking Executive Director Sales and Marketing

Mr. Nikhil Daxini

process

of

Executive Director

Mr. Santanu Syam

– Operations Associate Director –

Mr. Ketan Shah

Information Technology and B2B Business Associate Director -

Mr. Naveen Mathur

Commodities & Currencies

RELIANCE MONEY Reliance Securities comes from the house of Reliance Capital, one of India’s leading & prominent financial houses.Founded in 1986, Reliance Capital has come a long way from being into steady annuity yielding businesses such as leasing, bill discounting, and inter-corporate deposits to diversifying its activities in the areas of asset management and mutual fund; life and general insurance; consumer finance and industrial finance; stock broking; depository services; private equity and proprietary investments; exchanges, asset reconstruction; distribution of financial products and other activities in financial services. Reliance Capital has a net worth of Rs. 7,887 crore (US$ 2 billion) and total assets of Rs. 32,419 crore (US$ 7 billion) as on June 30, 2011. Reliance Securities Reliance Securities Limited is a Reliance Capital company and part of the Reliance Group.Reliance Securities endeavors to change the way investors transact in equities markets and avails services. It provides customers with access to Equity, Derivatives, Portfolio Management Services*, Investment Banking*, Mutual Funds & IPOs. It also offers secured online share trading platform and investment activities in secure, cost effective and convenient manner. To enable wider participation, it also provides the convenience of trading offline through variety of means, including Call & Trade, Branch dealing Desk and its network of affiliates.Reliance Securities has a pan India presence at more than 1,700 locations.Reliance Capital is one of India's leading and fastest growing private sector financial services companies,

and ranks among the top 3 private sector financial services and banking groups, in terms of net worth. Awards & Achievements 1.

Reliance Securities has been rated no. 1 by Star com Worldwide for online security and cost effectiveness in 2007

2.

'Debutant Franchisor of the Year' at the 5th International Franchisee & Retail show 2007

3.

'Best in category Service Franchise' at the 6th International Franchise & Retail show 2008

4.

'Best E-Brokerage Houser 2008' (runner's up) by Outlook Money NDTV Profit Awards

5.

'Largest E-Broking House & Best Equity Broking House for the year 2009' by Dun & Bradstreet

6.

'Largest E-Broking House 2010' by Dun & Bradstreet

7.

'My FM Stars of the Industry 2011' for excellence in Online Demat

8.

Reliance Securities Limited is now ISO 9001:2008 certified for Online Trading Platform

9.

'Brand Leadership Legacy Award' at the Asian Leadership Awards - Dubai, 2011

10.

*Offered through group companies

MANAGEMENT TEAM Reliance Securities is lead by a team of distinguished individuals dedicated towards scaling the company to greater heights through innovative products and services that create value for our customers & stake holders. Executive director

Vikrant Gugnani

Chief Financial Officer

Sanjay Wadhwa

Head Compliance

Suresh T Vishwanathan

Head Research

Hitesh Agrawal