Full File Jagjot Singh

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Study of capital market

CERTIFICATE

I hereby certify that this project work entitled Study of capital

markets submitted by Jagjot Singh to Mata Gujri College Fatehgarh

Sahib Affiliated to Punjabi university Patiala, for the award of degree in

Bachelor of Business Administration (BBA), is carried out under my

guidance and supervision.

GUIDE

Shivani Bector


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CERTIFICATE

I hereby certify that this project work entitled STUDY OF CAPITAL

MARKET submitted by Jagjot Singh to Mata Gujri College Fatehgarh

Sahib Affiliated to Punjabi university Patiala, for the award of degree in

Bachelor of Business Administration (BBA), is carried out under my

guidance and supervision.

GUIDE

(Harsimran Singh)


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A PROJECT REPORT ON

STUDY OF CAPITAL MARKET

Submitted to

Mata Gujri College

Fatehgarh Sahib

Affiliated to

Punjabi university,Patiala.

In partial fulfillment of degree of bachelor of business

administration

For the academic year 2008-2009

By: Jagjot Singh

Univ. Roll. No.

Under the guidance of

Mrs. Shivani Bector.

Session (2008-2009)


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ACKNOWLEDGEMENT

Our personalities are based on the foundation of education imparted by our

teachers who are next to god.

I acknowledge our deepest sense of gratitude and sincere feeling of indebtedness

to my major advisor, Mr. Harsimran Singh, under whose guidance I was able

to complete my project.

Without their immaculate and intellectual guidance, sustained efforts and

encouraging attitude, it would have been difficult to achieve the results in such a

short span of time.

I am grateful to Mr. Naveen Bansal (Branch Manager) of Angel Broking,

Chandigarh for permitting me to take the training at Angel Broking Ltd. I also

want to express our sincere gratitude to all the staff members of Angel Broking

for spending time and valuable information they have shared with me and helped

me in my project to be a success. The acknowledgement would not be completed

without expressing my thanks to the faculty of my college for showing me the

right path and guided me to solve my problems.

I extent my gratitude to our Director Mr. G.S Walia and all the related

teachers. The help and cooperation they offered at each stage of my study is

ineffable. Their valuable suggestions and constant encouragement made this

study interesting and useful. I would also like to acknowledge the support I got

from my parents and God. It was their blessing that kept me motivated

throughout till the completion of the project.

Jagjot Singh


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STUDENT DECLARATION

I here by Declare that study ofStudy of Capita Market Has been exclusively

done by us for the degree of BACHELOR OF BUSINESS

ADMINISTRATIONAnd not for any other degree, Diploma or fellowship. This

is our own study done under the guidance of manager of the company.

I hereby declare that the contents of this report are true and best to my

knowledge.

Place: CHANDIGARH

JAGJOT SINGH


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PREFACE

One should always work with an objective in its mind. To accomplish that

objective efficient management of material, time and financial resources is very

important. Above this coordination is must that determines the degree of success.

Awareness at each level of life is necessary for a human being keeping all this is

view in this report on Study of Capital Market. The rounded encouraging

support by Mr. Harsimran Singh towards this report has created in me

confidence regarding the approval of the subject matter.

I feel that it was a great opportunity for me to spend time in Angel Broking and

getting myself aware of the ups and downs of capital market.

So would like to say that this report is a result of an assignment, to improve

myself and gain confidence.


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CONTENTS

CHAPTER 1 INTRODUCTION TO ORGANISATION


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STOCK EXCHANGE

A STOCK EXCHANGE is a platform where buyers and sellers of securities

issued by government, financial institutions, corporate houses, etc meet and


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where the trading of these corporate securities takes place. This is a market of

speculations. If the speculation of investor becomes wrong then the investor

loses. Nobody knows what will happen even after a second.

A stock exchange refers to that segment of the capital market where the securities

issued by corporate entities are trade. It is an open auction market where buyers

and sellers meet and evolve a competitive price for the securities. It reflects

hopes, aspirations and fears of people regarding the performance of the economy.

It provides necessary mobility to capital and directs the flow of capital into

profitable and successful enterprises.

Since buying and selling of different types of securities takes place in stock

exchange. The prices of particular securities reflect their demand and supply. In

fact, stock exchange is said to be a barometer of economic and financial health.

The stock exchanges are the nerve center of capital market. The stock exchange

discharges three essential functions in the process of capital formation not in

raising resources for the corporate sector.

It provides place for sale and purchase of securities i.e. shares, bonds etc.

It provides linkages between the savings of household sector and investment in

corporate sector or economy.

It provides market quotation for share, debentures and bonds and serves as a role

of barometer, not only of the state of health of individual companies, but also of

the economy as a whole.

Therefore, by providing market place quotations of the price of shares and bonds

or sort of collective judgment. Simultaneously reached by many buyers andsellers in the market, the stock exchanges serve the role of barometer, not only of

the state of health of individual companies but also of the nations economy as a

whole.


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FEATURES OF STOCK EXCHANGE

It is the place where listed securities are bought and sold.

It is an association of persons known as members.

Trading in securities is allowed under rules and regulations of stock

exchange.

Membership is must for transacting business.

Investors and speculators, who want to buy and sell securities, can do so

through members of stock exchanges i.e. brokers.

FUNCTIONS OF STOCK EXCHANGE

The stock exchange provides appropriate conditions where purchase and sale of

securities takes place at reasonable and fair prices. The bargained prices of

buyers and sellers are recorded, on the basis of which each investor is able to


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evaluate the securities held by him and thus knows the worth of his holdings at a

particular time. The stock exchange provides a ready market for the conversion of

existing securities into cash and vice versa.

People having surplus funds invest in securities and these funds are securities

and these funds are used for industrialized and economic development of the

country that leads to capital formation.

Stock exchange protects the investor of investors through strict enforcement of

rules and regulations with respect of dealings. Punishment (including fine,

suspension) may be there if brokers adopt any malpractice in dealing with

investor like charging excessively high commission etc.

The stock exchange acts as the center of providing business information relating

to the enterprise whose securities are traded as the listed companies are to

present their financial and other statements to it.

HISTORY OF STOCK EXCHANGE

The trading in securities in India was started in the early of 1973. The stock

exchange operating in the 19th century was those of Bombay set up in 1875 and


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Ahmedabad set up in 1894. These were organized as voluntary non-profit making

associations of brokers to regulate and protect their interests. Before the control

on securities trading becomes a control on securities trading became a central

subject under the constitution in 1950. It was a state subject and the Bombaysecurities contact (control) act, 1925 used to regulate trading in securities. Under

this act, Bombay stock exchange was securities in 1927 and Ahmadabad stock

exchange in 1927 and Ahmadabad stock exchange in 1937. During the war boom,

a number of stock exchanges were organized at Bombay, Ahmadabad and other

centers but they were not recognized soon after it became a central subject,

central legislation was proposed and a committee headed by sh. A.D. GORWALA

went into bill for securities regulation. On the basis securities regulation. On thebasis securities contracts (control) at became law in 1956. At present there are 23

recognized stock exchanges in India. Number of Investors is increasing day by

day.

The stock exchange is a double auction market. Quite distinct from the common

market in which only one seller and many buyers in a stock exchange a number of

potential buyers and potential sellers co-exist all competing both among

themselves and with one another in making bids, counter-bids, offers and

counter-offers.

WHO BENEFITS FROM STOCK EXCHANGE?

INVESTORS: It provides them liquidity, marketability, safety etc. of

Investment.


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COMPANIES: It provides them access to market funds, higher rating and

public interests.

BROKERS: They receive commission in lien of their services to investors.

ECONOMY AND COUTRY: There is large of saving, better growth

moves industries, higher income.

LIST OF VARIOUS STOCK EXCHANGES IN INDIA

TABLE 1.1


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S.

No.Name of stockexchange

Years of

establishment

Type of organization

1 Bombay Stock exchange 1875 Voluntary Non-profit

organization

2 Ahmadabad Stock

exchange

1897 Voluntary Non-profit

organization

3 Calcutta Stock exchange 1908 Public limited company

4 M.P. Stock exchange,

Indore

1930 Voluntary Non-profit

organization

5 Madras Stock exchange 1937 Co. limited by guarantee

6 Hyderabad Stock

exchange

1943 Co. limited by guarantee

7 Delhi Stock exchange 1947 Public limited company

8 Bangalore Stock exchange 1957 Pvt. converted into

public ltd. co.

9 Cochin stock exchange 1978 Public limited company

10 U.P. Stock exchange,

Kanpur

1982 Public limited company

11 Pune Stock exchange 1982 Co. limited by guarantee

12 Ludhiana Stock exchange 1983 Public limited company

13 Jaipur Stock exchange 1983 Public limited company

14 Guwahati Stock exchange 1984 Public limited company

15 Kannaar Stock exchange 1985 Public limited company

16 Magadha Stock exchange 1986 Co. limited by guarantee

17 Bhuvneshwar Stock 1989 Co. limited by guarantee


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exchange

18 Saurashtra stock

exchange, Kutch.

1989 Co. limited by guarantee

19 Vadodra Stock exchange 1990 N.D.

20 Meerut Stock exchange 1991 N.D.

21 O.T.C.I.

(Over the counter

exchange of India),

Mumbai

1993 Pure demutualised

22 National Stock exchange 1995 Pure demutualised

23 Coimbatore tock

exchange

1996 N.D.

24 Sikkim Stock exchange 1997 N.D.

Profile of NSE

Introduction

The National Stock Exchange of India, or what popularly known as NSEI or

NSE was set up in June 1994. It has shown impressive performance since its

inception. The trading volume has been higher than BSE since November 1995. It

has fully automated, electronic, screen-based trading system. It is sponsored bythe IDBI and co-sponsored by other term-lending institutions, LIC, GIC, other

insurance companies, commercial banks, and other financial institutions; viz.,

SBI Caps, SHCIL, and ILFs. Its objectives are:

(a) To provide nation-wide equal access and fair, efficient, completely


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transparent securities trading system to investors by using suitable

communication network.

(b)To provide shorter settlement cycles and book entry settlement system.

(c) To bring the Indian stock market in line with international markets.

(d)To promote the secondary market in debt instruments such as government

and corporate bonds.

It has two separate segments:

(a)The Wholesale Debt Market Segment (WDMS), which caters to the bank,

financial institutions, and other institutional participants, and which deals

in PSU bonds, units, TBs, government securities, call money, CPs, CDs, etc.

Everything is big in this segment; there are mega players, mega investors,

and mega deals in it.

(b)The Capital Market Segment (CMS), which deals in equities, convertible

debentures, etc. These include securities that are traded on other stockexchanges also.

WDMS started functioning from 30th June 1994. Trading in CPs began on

16th August 1994. CMS began trading from 3rd November 1994. The NSEI

introduced trading in repos with effect from 23rd June 1995. Recently the RBI has

identified the NSEI as the only conduit for inter-bank security deals.

The NSEI is an order driven and not a quote driven market, and it allows

trading members to trade from their offices through a communication network.

As said earlier, it has fully automated, screen-based ring less trading system. By

the end of 1997, it has spread its business in 200 cities with more than 1,000

terminals. The firms whose shares are traded on it are traded on it are divided

into two categories: Listed and Permitted.


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NSE Logo

The logo of the NSE symbolizes a single nationwide securities trading facility

ensuring equal and fair access to investors trading members and issuers all over the

country. The initials of the Exchange viz. N, S and E have been etched on the logo

and are distinctly visible. The logo symbolizes use of state of the art information

technology and satellite connectivity to bring about the change within the securities

industry. The logo symbolizes vibrancy and unleashing of creative energy to

constantly bring about change through innovation.

Indices In NSE S&P CNX Nifty

CNX Nifty Junior

CNX IT Sector Index

CNX Bank Index

CNX 100

The most popular of above is S&P CNX Nifty. All these are explained in

detail in the next section.

S&P CNX NiftyS&P CNX Nifty is a well diversified 50 stock index accounting for 25

sectors of the economy. It is used for a variety of purposes such as benchmarking


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fund portfolios, index based derivatives and index funds.

S&P CNX Nifty is owned and managed by India Index Services and

Products Ltd. (IISL), which is a joint venture between NSE and CRISIL. IISL is

India's first specialized company focused upon the index as a core product. IISLhave a consulting and licensing agreement with Standard & Poor's (S&P), who

are world leaders in index services.

The average total traded value for the last six months of all Nifty stocks is

approximately 47% of the traded value of all stocks on the NSE

Nifty stocks represent about 58% of the total market capitalization as on

December 30, 2005.

Impact cost of the S&P CNX Nifty for a portfolio size of Rs.5 million is

0.07%.

S&P CNX Nifty is professionally maintained and is ideal for derivatives.

CNX Nifty JuniorThe next rung of liquid securities after S&P CNX Nifty is the CNX Nifty

Junior. It may be useful to think of the S&P CNX Nifty and the CNX Nifty Junioras making up the 100 most liquid stocks in India.

As with the S&P CNX Nifty, stocks in the CNX Nifty Junior are filtered for

liquidity, so they are the most liquid of the stocks excluded from the S&P CNX

Nifty. The maintenance of the S&P CNX Nifty and the CNX Nifty Junior are

synchronized so that the two indices will always be disjoint sets; i.e. a stock will

never appear in both indices at the same time. Hence it is always meaningful to

pool the S&P CNX Nifty and the CNX Nifty Junior into a composite 100 stock

indexes or portfolio.

CNX Nifty Junior represents about 9.50% of the total market capitalization

as on December 30, 2005.

The average traded value for the last six months of all Junior Nifty stocks is


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approximately 8% of the traded value of all stocks on the NSE

Impact cost for CNX Nifty Junior for a portfolio size of Rs.2.50 million is

0.15%

CNX IT Sector IndexInformation Technology (IT) industry has played a major role in the Indian

economy during the last few years. A number of large, profitable Indian

companies today belong to the IT sector and a great deal of investment interest is

now focused on the IT sector. In order to have a good benchmark of the Indian IT

sector, IISL has developed the CNX IT sector index. CNX IT provides investorsand market intermediaries with an appropriate benchmark that captures the

performance of the IT segment of the market.

Companies in this index are those that have more than 50% of their

turnover from IT related activities like software development, hardware

manufacture, vending, support and maintenance.

The average total traded value for the last six months of CNX IT Index

stocks is approximately 91% of the traded value of the IT sector. CNX IT Index

stocks represent about 96% of the total market capitalization of the IT sector as

on March 31, 2005.

The average total traded value for the last six months of all CNX IT Index

constituents is approximately 14% of the traded value of all stocks on the NSE.

CNX IT Index constituents represent about 14% of the total market capitalization

as on March 31, 2005.

Methodology

The index is a market capitalization weighted index with its base period


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being December 1995 and the base date and base value being January 1, 1996 and

1,000 respectively.

The Base Value of the index is being revised from 1000 to 100 w.e.f. 28

May 2004.

Selection Criteria

Selection of the index set is based on the following criteria:

Company's market capitalization rank in the universe should be less than500.

Company's turnover rank in the universe should be less than 500.

Company's trading frequency should be at least 90% in the last six months.

Company should have a positive net worth.

A company which comes out with a IPO will be eligible for inclusion in the

index, if it fulfills the normal eligibility criteria for the index for a 3 month periodinstead of a 6 month period.

CNX Bank Index


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The Indian banking Industry has been undergoing major changes,

reflecting a number of underlying developments. Advancement in

communication and information technology has facilitated growth in internet-

banking, ATM Network, Electronic transfer of funds and quick dissemination ofinformation. Structural reforms in the banking sector have improved the health

of the banking sector. The reforms recently introduced include the enactment of

the Securitization Act to step up loan recoveries, establishment of asset

reconstruction companies, initiatives on improving recoveries from Non-

performing Assets (NPAs) and change in the basis of income recognition has

raised transparency and efficiency in the banking system. Spurt in treasury

income and improvement in loan recoveries has helped Indian Banks to recordbetter profitability. In order to have a good benchmark of the Indian banking

sector, India Index Service and Product Limited (IISL) has developed the CNX

Bank Index.

CNX Bank Index is an index comprised of the most liquid and large

capitalized Indian Banking stocks. It provides investors and market

intermediaries with a benchmark that captures the capital market performance of

Indian Banks. The index will have 12 stocks from the banking sector, which trade

on the National Stock Exchange.

The average total traded value for the last six months of CNX Bank Index

stocks is approximately 74% of the traded value of the banking sector. CNX Bank

Index stocks represent about 79% of the total market capitalization of the

banking sector as on March 31, 2005.

The average total traded value for the last six months of all the CNX BankIndex constituents is approximately 10% of the traded value of all stocks on the

NSE. CNX Bank Index constituents represent about 9% of the total market

capitalization as on March 31, 2005.


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SelectionCriteria

Selection of the index set is based on the following criteria:

Company's market capitalization rank in the universe should be less

than 500.

Company's turnover rank in the universe should be less than 500.

Company's trading frequency should be at least 90% in the last six

months.

Company should have a positive net worth.

A company which comes out with an IPO will be eligible for inclusion in

the index, if it fulfills the normal eligibility criteria for the index for a 3 month

period instead of a 6 month period.

CNX 100

Method of Computation

CNX 100 is computed using market capitalization weighted method,

wherein the level of the index reflects the total market value of all the stocks in

the index relative to a particular base period. The method also takes into account

constituent changes in the index and importantly corporate actions such as stock

splits, rights, etc without affecting the index value.

Base Date and Value

The CNX 100 Index has a base date of Jan 1, 2003 and a base value of

1000.


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Criteria for Selection of Constituent Stocks

CNX 100 index would comprise of the securities, which are constituents of

S&P CNX Nifty, and CNX Nifty Junior. In other words this index is a

combination of the S&P CNX Nifty and CNX Nifty Junior. Any changes i.e.inclusion and exclusion of securities in S&P CNX Nifty and CNX Nifty Junior

would be automatically mirrored in this new index.

Listing of securities in NSENSE plays an important role in helping Indian companies access equity

capital, by providing a liquid and well-regulated market. NSE has about 1016

companies listed representing the length, breadth and diversity of the Indian

economy which includes from hi-tech to heavy industry, software, refinery, public

sector units, infrastructure, and financial services. Listing on NSE raises a

companys profile among investors in India and abroad. Trade data is distributed

worldwide through various news-vending agencies. More importantly, each and

every NSE listed company is required to satisfy stringent financial, public

distribution and management requirements. High listing standards foster

investor confidence and also bring credibility into the markets.

NSE lists securities in its Capital Market (Equities) segment and its

Wholesale Debt Market segment


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Securities Available for Trading

The Capital Market (Equities) segment of NSE facilitates trading in the following

instruments:

A Shares

Equity Shares

Preference Shares

B Debentures

Partly Convertible Debentures

Fully Convertible Debentures

Non Convertible Debentures

Warrants / Coupons / Secured Premium Notes/ other Hybrids

Bonds

B Units of Mutual Funds.

Market TimingsTrading on the equities segment takes place on all days of the week (except

Saturdays and Sundays and holidays declared by the Exchange in advance). The

market timings of the equities segment are:

Normal Market Open: 09:55 hours.


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Normal Market Close: 15:30 hours.

The Closing Session is held between 15.50 hours and 16.00 hours.

Limited Physical Market Open: 09:55 hours.

Limited Physical Market Close: 15:30 hours.

Trading SystemNSE operates on the 'National Exchange for Automated Trading' (NEAT) system,

a fully automated screen based trading system, which adopts the principle of an

order driven market. NSE consciously opted in favor of an order driven system as

opposed to a quote driven system. This has helped reduce jobbing spreads not

only on NSE but in other exchanges as well, thus reducing transaction costs.

Trading System - Market TypesThe NEAT system has four types of market. They are:

1. Normal Market

All orders which are of regular lot size or multiples thereof are traded in the

Normal Market. For shares that are traded in the compulsory dematerialized

mode the market lot of these shares is one. Normal market consists of various

book types wherein orders are segregated as Regular lot orders, Special Term

orders, and Negotiated Trade Orders and Stop Loss orders depending on their

order attributes.

2. Odd Lot Market

All orders whose order size is less than the regular lot size are traded in the

odd-lot market. An order is called an odd lot order if the order size is less than

regular lot size. These orders do not have any special terms attributes attached to

them. In an odd-lot market, both the price and quantity of both the orders (buy

and sell) should exactly match for the trade to take place. Currently the odd lot


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market facility is used for the Limited Physical Market as per the SEBI directives.

3. Auction Market

In the Auction Market, auctions are initiated by the Exchange on behalf of

trading members for settlement related reasons. There are 3 participants in this

market.

Initiator - the party who initiates the auction process is called an initiator.

Competitor - the party who enters orders on the same side as of the initiator.

Solicitor - the party who enters orders on the opposite side as of the initiator.

1. Spot Market

Spot orders are similar to the normal market orders except that spot orders

have different settlement periods vis--vis normal market. These orders do not

have any special terms attributes attached to them. Currently the Spot Market is

not in use.

Trading System - Order BooksThe NSE trading system provides complete flexibility to members in the

kinds of orders that can be placed by them. Orders are first numbered and time-

stamped on receipt and then immediately processed for potential match. Every

order has a distinctive order number and a unique time stamp on it. If a match is

not found, then the orders are stored in different 'books'. Orders are stored in

price-time priority in various books in the following sequence:

Best Price.

Within Price, by time priority.


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Price priority means that if two orders are entered into the system, the order

having the best price gets the higher priority. Time priority means if two orders

having the same price are entered, the order that is entered first gets the higher

priority.The Equities segment has following types of books:

1. Regular Lot Book

The Regular Lot Book contains all regular lot orders that have none of the

following attributes attached to them.

All or None (AON)

Minimum Fill (MF)

Stop Loss (SL)

1. Special Terms Book

The Special Terms book contains all orders that have either of the following

terms attached:

All or None (AON)

Minimum Fill (MF)

1. Negotiated Trade Book

The Negotiated Trade book contains all negotiated order entries captured

by the system before they have been matched against their counterparty trade

entries. These entries are matched with identical counterparty entries only. It is

to be noted that these entries contain a counterparty code in addition to other

order details.

2. Stop-Loss Book


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Stop Loss orders are stored in this book till the trigger price specified in the

order is reached or surpassed. When the trigger price is reached or surpassed, the

order is released in the Regular lot book.

The stop loss condition is met under the following circumstances: Sell order - A sell order in the Stop Loss book gets triggered when the last

traded price in the normal market reaches or falls below the trigger price of

the order.

Buy order - A buy order in the Stop Loss book gets triggered when the last

traded price in the normal market reaches or exceeds the trigger price of the

order.

1. Odd Lot Book

The Odd lot book contains all odd lot orders (orders with quantity less than

marketable lot) in the system. The system attempts to match an active odd lot

order against passive orders in the book. Currently, pursuant to a SEBI directive,

the Odd Lot Market is being used for orders that have quantity less than or equal

to 500 viz. the Limited Physical Market.

2. Spot Book

The Spot lot book contains all spot orders (orders having only the

settlement period different) in the system. The system attempts to match an

active spot lot order against the passive orders in the book. Currently the Spot

Market book type is not in use.

3. Auction Book


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This book contains orders that are entered for all auctions. The matching

process for auction orders in this book is initiated only at the end of the solicitor

period.

Trading System - Order Matching RulesThe best buy order is matched with the best sell order. An order may match

partially with another order resulting in multiple trades. For order matching, the

best buy order is the one with the highest price and the best sell order is the one

with the lowest price. This is because the system views all buy orders available

from the point of view of a seller and all sell orders from the point of view of the

buyers in the market. So, of all buy orders available in the market at any point of

time, a seller would obviously like to sell at the highest possible buy price that is

offered. Hence, the best buy order is the order with the highest price and the best

sell order is the order with the lowest price.

Members can proactively enter orders in the system, which will be

displayed in the system till the full quantity is matched by one or more of

counter-orders and result into trade(s) or is cancelled by the member.

Alternatively, members may be reactive and put in orders that match with

existing orders in the system. Orders lying unmatched in the system are 'passive'

orders and orders that come in to match the existing orders are called 'active'


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orders. Orders are always matched at the passive order price. This ensures that

the earlier orders get priority over the orders that come in later.

Trading System - Order Conditions

A Trading Member can enter various types of orders depending upon

his/her requirements. These conditions are broadly classified into three

categories: time related conditions, price-related conditions and quantity related

conditions.

1. Time Conditions

DAY- A Day order, as the name suggests, is an order which is valid for the

day on which it is entered. If the order is not matched during the day, the

order gets cancelled automatically at the end of the trading day.

GTC - A Good Till Cancelled (GTC) order is an order that remains in thesystem until it is cancelled by the Trading Member. It will therefore be able to

span trading days if it does not get matched. The maximum number of days a

GTC order can remain in the system is notified by the Exchange from time to

time.

GTD - A Good Till Days/Date (GTD) order allows the Trading Member to

specify the days/date up to which the order should stay in the system. At the

end of this period the order will get flushed from the system. Each day/date

counted is a calendar day and inclusive of holidays. The days/date counted are

inclusive of the day/date on which the order is placed. The maximum number

of days a GTD order can remain in the system is notified by the Exchange

from time to time.


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IOC - An Immediate or Cancel (IOC) order allows a Trading Member to buy

or sell a security as soon as the order is released into the market, failing which

the order will be removed from the market. Partial match is possible for the

order, and the unmatched portion of the order is cancelled immediately.

1. Price Conditions

Limit Price/Order An order that allows the price to be specified while

entering the order into the system.

Market Price/Order An order to buy or sell securities at the best price

obtainable at the time of entering the order.

Stop Loss (SL) Price/Order The one that allows the Trading Member to

place an order which gets activated only when the market price of the relevant

security reaches or crosses a threshold price. Until then the order does not

enter the market.

A sell order in the Stop Loss book gets triggered when the last traded

price in the normal market reaches or falls below the trigger price of the order.A buy order in the Stop Loss book gets triggered when the last traded price in

the normal market reaches or exceeds the trigger price of the order. E.g. If for

stop loss buy order, the trigger is 93.00, the limit price is 95.00 and the

market (last traded) price is 90.00, then this order is released into the system


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once the market price reaches or exceeds 93.00. This order is added to the

regular lot book with time of triggering as the time stamp, as a limit order of

95.00

1. Quantity Conditions

Disclosed Quantity (DQ)- An order with a DQ condition allows the Trading

Member to disclose only a part of the order quantity to the market. For example,

an order of 1000 with a disclosed quantity condition of 200 will mean that 200 is

displayed to the market at a time. After this is traded, another 200 is

automatically released and so on till the full order is executed. The Exchange mayset a minimum disclosed quantity criteria from time to time.

MF - Minimum Fill (MF) orders allow the Trading Member to specify the

minimum quantity by which an order should be filled. For example, an order

of 1000 units with minimum fill 200 will require that each trade be for at least

200 units. In other words there will be a maximum of 5 trades of 200 each or

a single trade of 1000. The Exchange may lay down norms of MF from time to

time.

AON - All or None orders allow a Trading Member to impose the condition

that only the full order should be matched against. This may be by way of


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multiple trades. If the full order is not matched it will stay in the books till

matched or cancelled.


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Establishment of NSE

The National Stock Exchange of India (NSE) is one of the most important and

most advanced stock markets in India, and, in terms of transactions, it is the

third largest stock exchange in the World. In 1994, the National Stock Exchange

of India (NSE) functioned as a platform for securities exchange. The NSE India

exchanges many different securities, such as equity, corporate debt, central and

state government securities, commercial paper, and certificates of deposit. Atpresent, 1000 members are enrolled on the NSE, and it is the owner of different

financial and insurance institutions. NSE has played a important role for creating

capital for the companies in India.


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BOARD OF DIRECTORS OF NSE

MR. GP Gupta Chairman and Managing Director,IDBI.

DR. RH Patil Managing Director, NSE.

MR. Ravi Narain Deputy Managing Director, NSE

Mr.Birendra Kumar Managing Director & Chief ExecutiveOfficer Managing Director & ChiefExecutive OfficerSBI Capital Markets Ltd.SBI Capital Markets Ltd.

Mr. P. A. Balasubramanian Executive Director (Investments)Life Insurance Corporation of India

Mr.P.V.Narasimham Chairman & Managing DirectorThe Industrial Finance Corp. of India

Ltd.Mr. RaviParthasarathy

Vice Chairman &Managing DirectorInfrastructure Leasing & FinancialServices Ltd.

Mr. O. P. Gahrotra Senior Executive DirectorSecurities and Exchange Board ofIndia

Mr. P.M.Venkatasubramanian Ex-Managing Director

General Insurance Corporation ofIndia

Mr.P.S.Subramanyam ChairmanUnit Trust of India

.Mrs.LalitaD.Gupte Managing Director & Chief Operations Officer


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ICICI Limited

Mr. Deepak Parekh ChairmanHDFC

Mr.S.P.Chhajed Partner,

M/s Chhajed & Doshi

Mr. Justice M.L. Pendse ((Retd.) Former Chief Justice ofKarnataka High Court

Mr. A. P. Kurian Chairman, AMFI

Prof. (Dr.) K R S Murthy IIM, Bangalore

Mr. S. H. Khan Ex- Chairman & Managing Director,

IDBIMr.S.Venkiteswaran Sr. Advocate

Mr.Y.H.Malegam Senior PartnerS.B. Billimoria & Co.,


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On the Wholesale Debt Market segment, 797 securities are listed and 517

securities are permitted to trade as of October 31, 1999. Of the 797

securities listed, 369 are Government Securities/T-Bills and the balance

account for other securities.

Capital Market Operations

NSE is working to increase the capacity of the trading system from the

present 4, 00,000 trades per day to more than 10, 00, 000 trades per day.

The average daily numbers of trades have gone up from over 893 trades in

November-94 to over 4,36,387 trades in October '99. On October 13,'99 thenumber of trades reached a record high of 5,64,653 which makes NSE one

of the largest stock exchanges in the world

Average daily traded value has increased from Rs.7 crores in November-94

to more than Rs. 3439 crores in October '99 with a high of Rs.4851 crores

recorded on October 13, '99

Number of shares traded has increased from 76.10 lakhs in November-94

to 26,100.43 lakhs in October '99.

Net traded value has increased from Rs.125 crores in November'94 to

72,216 crores in October '99.

The market capitalization of companies has increased from Rs. 2, 92,637

crores in November '94 to Rs. 6, 70,062 crores in October '99.

Delivered value (settlement wise) has increased from Rs.60 crores in

November -94 to Rs.9, 333 crores in October '99.

Number of shares traded (depository segment) has increased from 200

shares in December-96 to 110.14 lakh shares in October '99.


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Net traded value (depository segment) has increased from Rs.0.43

lakhs in December-96 to Rs.39,009.64 lakhs in October '99

The total turnover in the 3 Day market segment during October '99

was Rs. 1170.21 crores.

Total turnover in the shares traded under compulsory demat shares

during October '99 was Rs. 52,055 crores

Clearing & Settlement

Completed 262 settlements successfully without any delay or

postponement as on December 02, 1999.

Value of shares handled by the Clearing house per week has

increased from Rs. 30 crores in November 1994 to over Rs.2432

crores per week in September 1999.

Inter-Region Clearing: NSCCL has Regional Clearing Centres at

Delhi, Calcutta, Chennai and a Central Clearing Centre at Mumbai.

Members have the option of delivering/receiving the securities at a

clearing centre chosen by them.

Wholesale Debt Market Operations

The WDM segment commenced operations on June 30, 1994 with

224 securities carrying an outstanding debt value of Rs. 1, 35,000


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crores. This has now increased to 1306 securities with a market

capitalization of Rs. 4, 58,541.35 crores as on September 30, 1999.

The highest daily traded value of Rs. 2434.00 crores recorded on

August 06, 1999.

The net monthly traded value in the WDM segment increased from

Rs. 1096.25 crores in July -94 to Rs. 26,957.09 crores in August' 99

Government securities along with Treasury bills together account for

over 85% of the total market activity.


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National Securities Clearing Corporation Ltd.

The National Securities Clearing Corporation Ltd. (NSCCL), a wholly owned

subsidiary of NSE, was incorporated in August 1995. It was

the first clearing corporation to be established in the

country and also the first clearing corporation in the

country to introduce settlement guarantee.

It was set up with the following objectives:

to bring and sustain confidence in clearing and settlement of securities;


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to promote and maintain, short and consistent settlement cycles;

to provide counter-party risk guarantee, and

To operate a tight risk containment system.

NSCCL commenced clearing operations in April 1996. It has since completed

more than 2150 settlements (equities segment) without delays or disruptions.

The National Securities Clearing Corporation Ltd. (NSCCL), a wholly owned

subsidiary of NSE, was incorporated in August 1995. It was set up to bring and

sustain confidence in clearing and settlement of securities; to promote and

maintain, short and consistent settlement cycles; to provide counter-party risk

guarantee, and to operate a tight risk containment system.

NSCCL carries out the clearing and settlement of the trades executed in the

Equities and Derivatives segments and operates Subsidiary General Ledger (SGL)

for settlement of trades in government securities. It also undertakes settlement of

transactions on other stock exchanges like, the Over the Counter Exchange of

India.NSCCL has successfully brought about an up-gradation of the clearing and

settlement procedures and has brought Indian financial markets in line with

international markets.

National Commodity Clearing Limited

In order to harness its expertise in the area of Clearing and Settlement

activities and in keeping pace with the growing

commodity markets in India and to provide a special

thrust and focus on the Clearing & Settlement needs of

the commodity markets, a subsidiary company, namely,

National Commodity Clearing Limited (NCCL) has been incorporated

jointly between NSE and NCDEX. Presently, the Company provides IT

and process support in respect of clearing & settlement needs of NCDEX.


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NSE InfoTech Services Limited

Information Technology has been the backbone of conceptualization,formation, running and the success of National Stock

Exchange of India Limited (NSE). NSE has been at

the forefront in spearheading technological changes in

the securities market. It was important to give a special thrust and focus

on Information Technology to retain the primacy in the market. Towards

this, a wholly owned subsidiary, namely, NSE InfoTech Services Limited

(NSETECH) has been incorporated to cater to the needs of NSE and all itsgroup companies, exclusively.

India Index Services & Products Ltd.

India Index Services and Products Limited (IISL), a joint

venture between NSE and CRISIL Ltd. (formerly the Credit

Rating Information Services of India Limited), was set up in

May 1998 to provide a variety of indices and index related

services and products for the Indian capital markets. It has a

consulting and licensing agreement with Standard and Poor's (S&P), the world's

leading provider of investible equity indices, for co-branding equity indices.

IISL provides a broad range of services, products and professional index services.

It maintains over 80 equity indices comprising broad-based benchmark indices,

sectoral indices and customized indices. Many investment and risk management

products based on IISL indices have been developed in the recent past, within
http://www.crisil.com/http://www.crisil.com/


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India and abroad. These include index based derivatives traded on NSE and

Singapore Exchange (SIMEX) and a number of index funds.

NSE.IT Ltd.

NSE.IT, a 100% subsidiary of National Stock Exchange of India Limited (NSE), is

the information technology arm of the largest stock exchange of the country. Aleading edge technology user, NSE houses state-of-

the-art infrastructure and skills. NSE.IT possesses

the wealth of expertise acquired in the last six years

by running the trading and clearing infrastructure

of largest stock exchange of the country. NSE.IT is

uniquely positioned to provide products, services and solutions for the securities

industry. There has been a long felt need for top-of-the-line products, servicesand solutions in the area of trading, broker front-end and back-office, clearing

and settlement, web-based trading, risk management, treasury management,

asset liability management, banking, insurance etc. NSE.IT's expertise in these

areas is the primary focus. The company also plans to provide consultancy and


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implementation services in the areas of Data Warehousing, Business Continuity

Plans, Stratus Mainframe Facility Management, Site Maintenance and Backups,

Real Time Market Analysis & Financial News over NSE-Net, etc.

NSE.IT is an Export Oriented Unit with STP and plans to go global for various ITservices in due course. In the near future the company plans to release new

products for Broker Back-office Operations and enhance NeatXS / Neat iXS to

support Straight through Processing on the net.

DotEx International Limited

The data and info-vending products of NSE are provided through a separate

company DotEx International Ltd., a 100%

subsidiary of NSE, which is a professional set- up

dedicated solely for this purpose.

DotEx data products may be classified under the following broad categories:

On-line streaming data feed

Intra-day Snapshot data feed

End of day data

National Securities Depository Ltd. (NSDL)

In order to solve the myriad problems associated with trading in physical

securities, NSE joined hands with the Industrial

Development Bank of India (IDBI) and the Unit


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Trust of India (UTI) to promote dematerialization of securities. Together they set

up National Securities Depository Limited (NSDL), the first depository in India.

NSDL commenced operations in November 1996 and has since established a

national infrastructure of international standard to handle trading andsettlement in dematerialized form and thus completely eliminated the risks to

investors associated with fake/bad/stolen paper

Milestones of national stock exchange

As of July 2007, the total market capitalization of NSE is 42,74,509 Crore INR

that makes it the second largest stock market in South Asia in terms of themarket capitalization. The major capital markets where the NSE is operational

are - wholesale debt market, futures and options market, equity market and retail

debt market.

NSE has included some pioneering efforts to provide a modernized service to the

financial and capital market of India. NSE is the first to launch the electronic

limit order book (LOB) exchange in order to trade the securities in the country.Other markets in India are also now supporting the NSE model following its

immense success. NSE is also first to co-promote the first depository in India -

National Securities Depository Limited. NSE pioneered by setting up the

National Securities Clearing Corporation Ltd that is dedicated to provide

replacement on all the spot equity market trades in the country. The

commencement of Internet Trading in February 2000 is one of the milestones

achieved by NSE. It is the first exchange in the country to propose for trading

equity derivatives.

Apart from the NSE index, the National Stock Exchange of India also provides

some other indices like:


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S&P CNX NIFTY

CNX IT

CNX NIFTY JUNIOR

BANK NIFTY

S&P CNX DEFTY

CNX 100

NIFTY MIDCAP 50

CNX MIDCAP

S&P CNX 500

There are a total of 1319 companies listed in NSE index. There are some financial

and management requirements that the companies must satisfy in order get

enlisted in the NSE index. The industry classification of the companies may be

diverse and may include - heavy industry, hi-tech industry, refinery, software

industry, public sector units, financial services and infrastructure industry. The

NSE lists the company securities in its wholesale debt market segment or in the

capital market (equities) segment.

List of various milestones:

November 1992 Incorporation

April 1993 Recognition as a stock exchange

May 1993 Formulation of business plan

June 1994 Wholesale Debt Market segment goes live

November 1994 Capital Market (Equities) segment goes live

March 1995 Establishment of Investor Grievance Cell

April 1995 Establishment of NSCCL, the first Clearing Corporation


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June 1995 Introduction of centralized insurance cover for all trading

members

July 1995 Establishment of Investor Protection Fund

October 1995 Became largest stock exchange in the country

April 1996 Commencement of clearing and settlement by NSCCL

April 1996 Launch of S&P CNX Nifty

June 1996 Establishment of Settlement Guarantee Fund

November 1996 Setting up of National Securities Depository Limited, first

depository in India, co-promoted by NSE

November 1996 Best IT Usage award by Computer Society of India

December 1996 Commencement of trading/settlement in dematerialized

securities

December 1996 Dataquest award for Top IT User

December 1996 Launch of CNX Nifty Junior

February 1997 Regional clearing facility goes live

November 1997 Best IT Usage award by Computer Society of India

May 1998 Promotion of joint venture, India Index Services & Products

Limited (IISL)

May 1998 Launch of NSEs Web-site: www.nse.co.in

July 1998 Launch of NSEs Certification Programme in Financial Market

August 1998 CYBER CORPORATE OF THE YEAR 1998 award

February 1999 Launch of Automated Lending and Borrowing Mechanism

April 1999 CHIP Web Award by CHIP magazine

October 1999 Setting up of NSE.IT

January 2000 Launch of NSE Research Initiative


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February 2000 Commencement of Internet Trading

June 2000 Commencement of Derivatives Trading (Index Futures)

September 2000 Launch of Zero Coupon Yield Curve

November 2000 Launch of Broker Plaza by Dotex International, a joint

venture between NSE.IT Ltd. and i-flex Solutions Ltd.

December 2000 Commencement of WAP trading

June 2001 Commencement of trading in Index Options

July 2001 Commencement of trading in Options on Individual Securities

November 2001 Commencement of trading in Futures on Individual

Securities

December 2001 Launch of NSE VaR for Government Securities

January 2002 Launch of Exchange Traded Funds (ETFs)

May 2002 NSE wins the Wharton-Infosys Business Transformation Award

in the Organization-wide Transformation category

October 2002 Launch of NSE Government Securities Index

January 2003 Commencement of trading in Retail Debt Market

June 2003 Launch of Interest Rate Futures

August 2003 Launch of Futures & options in CNXIT Index

June 2004 Launch of STP Interoperability

August 2004 Launch of NSEs electronic interface for listed companies

March 2005 India Innovation Award by EMPI Business School, NewDelhi

June 2005 Launch of Futures & options in BANK Nifty Index

December 2006 Derivative Exchange of the Year, by Asia Risk magazine

January 2007 Launch of NSE - CNBC TV 18 media centre


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March 2007 NSE, CRISIL announce launch of IndiaBondWatch.com

June 2007 NSE launches derivatives on Nifty Junior & CNX 100

October 2007 NSE launches derivatives on Nifty Midcap 50

January 2008 Introduction of Mini Nifty derivative contracts on 1st

January 2008

March 2008 Introduction of long term option contracts on S&P CNX Nifty

Index

April 2008 Launch of India VIX

April 2008 Launch of Securities Lending & Borrowing Scheme

August 2008 Launch of Currency Derivatives


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About the Group

In a short span of 20 years since its inception, the angel group has emerged as

one of the five top retail stock broking houses in India, having membership of

BSE,NSE and two leading commodity exchanges in the country .i.e. NCDEX &

MCX. Angel broking is also registered as a depository participant with CDSL.

The group is promoted by Mr. Dinesh Thakkar, who started this business as a sub

broker in 1987 with a team of 3. Today angel group is managed by a team of

2234+ direct employees and has a nation wide network comprising of 15 regional


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hubs, 80 branches, 2 pcg offices, 5000+ sub brokers & business associates. The

group currently services more than 3 lac+ retail clients.

Operations in Angel Broking

Angel Broking Limited is one of the leading and professionally managed stock

broking firm involved in quality services and research. Angel Broking Limited is a

corporate member of The Stock Exchange, Mumbai.

The membership of the company with The Stock Exchange Mumbai was

originally in the name of Mukesh R. Gandhi, which was eventually turned into a

corporate membership in the name of Angel Broking Limited.

Angel Broking Limited is managed by Mr. Dinesh Thakkar and he is well

supported by Mr. Mukesh Gandhi, a fifteen years veteran in the market.


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The group is well supported by a professional and qualified research team and

efficient operations and back office team, which comprises of highly dedicated

and qualified individuals. Angel has an in-house, state of art research

department.Angel believes in reaching out to the customer at the farthest end rather than by

reaching out to them. The company in its Endeavour to give its client the best has

opened up several branches all over Mumbai, which are efficiently integrated

with the Head Office.

Angel Broking Limited is primarily into retail stock broking, with a customer base

of retail investors, which has been increasing at a compounded growth rate of

100% every year. The company has huge network sub-brokers in Mumbai and

other places outside Mumbai, registered with SEBI, who act as channel partners

for the company. The company presently has total staff strength of around 150

employees who are spread accordingly across the head office and all the

branches.

Angel has empowered its physical presence throughout India through various

strategies which it has been adopting efficiently and effectively over a period of

time, like opening up of branches at various places, tie-ups with various agencies

and sales agents, buy-outs of smaller regional outfits and appointment of sub-

brokers and franchisees. Moreover Angel has been tapping and including high

net-worth and self-employed individuals it its vast array of clients.

Top quality research & advisory services

a) Market outlook at 9;15 am

A crisp market report that arms our clients with

sensitive information before the opening ball. Key corporate developments,


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policy announcements, geo-political news and views are analyzed for their

impact on the market.

b) Technical analysis report at 6:00pmThis is a daily report on markets which includes

the view on the market for the next trading session as well as the short

medium advice on specific sector/stocks. Further, two stock picks are given

including pivot levels for NIFTY 50 stocks.

c) Derivative Analysis Report at 9:15 am

The report provides information on FIIactivity in the derivative segment, change in open interest put call ratio,

cost of carry of stocks and index based sessions derivative products. Our

derivative analysts use the above tools to project movements during the

next trading sessions.

Management

Dinesh thaakar

Chairman & Managing Director

The Angel Group of Companies was brought to life by

Mr. Dinesh Thakkar. He ventured into stock trading

with an intention to raise capital for his own

independent enterprise. However, he recognized the


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opportunity offered by the stock market to serve individual investors. Thus

Indias first retail-focused stock-broking house was established in 1987. Under

his leadership, Angel became the first broking house to embrace new technology

for faster, more effective and affordable services to retail investors.Mr. Thakkar is valued for his understanding of the economy and the stock-

market. The print and electronic media often seek his views on the market trend

as well as investment strategies.

Lalit thakkar

Director, Research

Mr. Lalit Thakkar is the motivating force behind

Angels highly acclaimed Research team. Hes been a

part of the senior management team since the Angel

Groups inception. His technical and fundamental

outlook has provided impetus to Angels market

research team. Research-based & personalized

advisory services are Angels forte, and Mr. Lalit

Thakkar has undoubtedly been the brain behind it.

When it comes to analyzing the market, Mr. Lalit Thakkar is truly a genius. Hishands-on experience and fundamental knowledge of the market can predict the

market trend early. His views on the market trend are often quoted in the print

and electronic media


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Amit majumdar

Executive Director Operations& Alt Business

A chartered Accountant by qualification, Mr. Amit Majumdar is a key member of

Angels strategic decision-making process. He has been

with the group since August 2004. He has handled

several functions of the group like finance and

operations, to name of few. He has rich experience in

finance, investment banking, treasury, consultancy and

advisory services.

Mr. Majumdar has led many successful initiatives for

the group. Before joining the Angel Group, Mr. Majumdar has been associated

with Rabo India Finance, Ambit Corporate Finance and Ernst & Young.

Rajiv phadke

Executive Director HR & Corp. Communications

Mr. Rajiv Phadke has actively contributed to the

Groups growth over the last four years. Holding amajor in Finance, Mr. Rajiv Phadke is a strategic

thinker with expertise in the field of corporate

planning, international marketing, financial

services, brand-building, HRD and quality

management.

With over 32 years of experience, Mr. Phadke has

successfully led SBUs and financial companies from concept to commissioning.

His career horizon spans Motilal Oswal Securities, Times Guaranty Financials,

Nagarjuna Securities and Tata Exports Ltd. He is also a well-known speaker in

the HR and business development circuit and his views are featured on various

electronic media as well.


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Vinay aggarwal

Executive Director, Equity Broking

Mr. Vinay Agrawal leads the Equity Broking

business at Angel, which comprises Business

Development, Operations, Product Development

and E-broking initiative. He is actively involved in

exploring new ways to adopt technology for

business enhancement.

A Chartered Accountant by qualification, Mr.

Agrawal began his career with the Angel Group as

Finance and Operations Consultant, and since then hes quickly climbed up the

corporate.

Nikhil daxini

Executive Director, Marketing& Sales

With an MBA in finance, Mr. Nikhil Daxini hasbeen instrumental in introducing the concept of

professional marketing of broking services at Angel.

His area of focus is Business Development, Risk

Management and Operations.

Mr. Daxini has immense experience in the

marketing of financial products and services. He

has been associated with HDFC Bank Ltd. in thepast.

Hitunshu debnathDirector,


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Distribution & Wealth Business

A marketing professional and a British

Chevening scholar from the London School of

Economics, Mr. Hitungshu Debnath leads the

Distribution and Wealth Management business at

the Angel Group. It includes the distribution of

Insurance, mutual funds, IPOs, personal loans

and other wealth management products.

Mr. Mudit Kulshreshtha

Director, Business intelligence & Analytics

He heads the advance analytics and strategic

business intelligence division at Angel. With a

Bachelors degree in Engineering and PhD in

Economics, Mr. Mudit Kulshreshtha has more

than 12 years experience in the field of strategyand business consulting.

He has been associated with reputed consulting

firms like Deloitte Consulting India, Ernst and

Young, Arthur Andersen and WNS Global. He has advised several big clients in

the U.S. and U.K. He is also a known speaker at public seminars and conferences

organized by CII, NASSCOM, Indian School of Business and IIT.

Mr. Kasad

Executive Director & CFO


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He brings with him over 23 years of experience

across Finance, Corporate Secretarial, Legal,

Compliance and other general management

functions from reputed organizations like A. F.Ferguson, Tata, Jindal British Steel, Countrywide

Financial and Accenture. Prior to joining Angel,

his was the Executive Vice President & CFO of

DCB Bank.Mr. Kasad is also a member of the National CFO Guild of Senior

Finance Professionals.

Mr. Syam

Director, Operations.

He brings with him over 18 years of experience in

the field of Transaction Banking, Wholesale

Banking, Treasury Banking, Consumer Banking

and CBS. He started his career with ANZ Grindlays

Bank and he was also associated with StandardChartered Bank in India as Director Transactional

Banking.

Mr. Syam followed up his Engineering degree with

an MBA. He has also attended Banking & Technology seminars organized by SCB

Singapore, BSE India & Euro Finance.

Mr. Ketan shah

Director, information technology.

IT is a strategic function at Angel. And Mr. Ketan

Shah is involved in the designing of Angels IT

policies and Strategies. Mr. Shah leads all IT-


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related activities from planning and budgeting to implementation and

maintenance.

Mr. Shah has over 18 years of industry experience. He has been involved in

various aspects of Business Operations in his previous assignments.

Organizational Chart


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RESEARCH METHODOLOGY

Research is a procedure of logical and systematic application of the

fundamentals of science to the general and overall questions of a study and

scientific technique by which provide precise tools, specific procedures and

technical, rather than philosophical means for getting and ordering the data prior

to their logical analysis and manipulations.

Different type of research design is available depending upon the

nature of research project, availability of able manpower and circumstances.

The study about ANALYSIS OF CAPITAL MARKET is

exploratory as well as descriptive in nature .Discussion with experts, internet

surfing, and journals were studied to explore more about the concerned objective

and better understanding of the problem. After that questionnaire was prepared

to meet the desired objective


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Research Design

Marketing research design is the specification of procedures for collecting and

analyzing the data necessary to help identify or react to a problem or opportunity,such that the difference between the cost of obtaining various levels of accuracy

and the expected value of the information associated with each level of accuracy

is maximized.

Several aspects of this definition deserve emphasis. First, research design

requires the specification of procedures. These procedures involve decisions on

what information to generate, the data collection method, the measurement

approach, the object to be measured, and the way in which the data are to be

analyzed.

Second, the data are to be collected to help identify or react to a problem or

opportunity. All data collected should eventually relate to decisions faced by

management. Obviously, the efficient collection of data relevant to a decision

requires a clear definition of the problem/opportunity.

A third implication of the preceding definition is that information has value.

Information acquires value as it helps improve decisions. The fourth major

implication is that varying levels of accuracy of information can be generated in

response to the same problem. Information accuracy is affected by the occurrence

of a number of potential errors. Finally, the goal of applied research design is not

to generate the most accurate information possible. Rather, the objective is to


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generate the most valuable information in relation to the cost of generating the

information.

Sources of Data:

The sources of data are of two types:

a) Primary sources

b) Secondary sources.

Primary Sources:

Primary data is data collected for first time especially for the purpose

for which study is being conducted i.e. The problem under study.

Secondary Sources:

The secondary data is data, which is collected and compiled for the

different purpose, which are used in research for this study. The secondary data

include material collected from:

Newspaper

Magazine.

Internet.


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Data Collection Instruments:

The various methods of data gathering involve the use of appropriate

recording forms. These are called tools or instruments of data collection. Data was collected through structured questionnaire and small interviews

administered by sitting with experts and discussing about the capital market.

Sampling Technique:

The small representative selected out of large population is selected

at random is called sample. Well-selected sample may reflect fairly, accurately

the characteristic of population. The chief aim of sampling is to make an

inference about unknown parameters from a measurable sample statistics.

Sampling technique used was Snowball sampling was used for the purpose of

data collection as reference was taken form sample to reach other sample.

Sample Size:

Sample size refers to the number of items to be selected from the

universe to constitute a sample. In the past four months I had the privilege of

talking with many kinds of person including experts ofAngel Brokings main

branch and its sub brokers in different parts of Chandigarh.


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Finally I constituted the research on 75 people including the experts and risk

advisors and few investors of various branches and sub branches in Chandigarh.

Sampling Unit:

The sampling unit was the person who was asked about the stock

market and about the affect of stock market on the financial condition of that

individual.

LIMITATIONS OF THE STUDY

No study is complete in itself, however, good it may and every study hassome limitations:

Concerning less number of people is the main constraint of my study.

Layman/common people were not included in the result, so their opinion

towards the market is still unknown. Most of the experts expressed their opinions very briefly due to the

constraint of time with them.

The research was done with experts of only one broker (angel broking), so

the view of other brokers towards the market is still unknown.


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