CHAPTER 1:

INTRODUCTION
The main function of the stock market is to enable trade in the shares of public companies,
which in turn reflect the performance of the companies whose shares are traded in the stock
market. Stock markets are also a vital part of an economy or the economic system of a
country. Today most economies around the world are judged by the performance of their
stocks. The stock markets serve a vital purpose in the growth and development of a company
that wants to expand. Such companies with expansion plans and new projects are in need of
funding and the stock market serves as the best platform from which a company can sell itself
to the discerning public on the basis of merit among other things. To trade in the stock market
a company has to be absolutely transparent about its vital fundamentals such as revenues,
income, assets, liabilities, infrastructure, etc. as this allows the investing public to make a fair
assessment of the said company’s market worth. With over 20 million shareholders, India has
the third largest investor base in the world after the USA and Japan. Over 9,000 companies
are listed on the stock exchanges, which are serviced by approximately 7,500 stockbrokers.
The Indian capital market is significant in terms of the degree of development, volume of
trading and its tremendous growth potential.

1.1: OBJECTIVE OF THE STUDY

 To understand the investors perception towards investment.
 Investor’s awareness in stock market and their philosophy.
 To study the major aspects of an investors perception.

1.2: REVIEW OF LITERATURE

S. KATHI Brown This survey of 20 to 50 year old investors was conducted in order to
examine perceptions of selected securities industry practices, the stock market, and financial
services professionals. The survey illustrates that most investors feel that the cost-related
issues of price per share and fees are more important in stock transactions than are other
issues such as speed of transaction. Findings also reveal widespread concerns among
investors related to dishonesty in the securities industry, lack of ethics, lack of accountability,
and lack of consumer protection, suggesting that much remains to be done to restore investor
confidence. Manoj Kumar Investment is the employment of funds on assets with the aim of
earning income or capital appreciation. In the past, investment avenues were limited to real
estates, schemes of the post office and banks. At present, a wide variety of investment
avenues are open to the investors to suit their needs and nature. The required level of return
and the risk tolerance level decide the choice of the investor. It is necessary to know that
investor prefer which particular investment instrument and why? The main purpose of this
research paper is to find Investors‟ perception for various investment alternatives particularly
shares and mutual funds. DR. K. RAVICHANDRAN In the current scenario, investing in
stock markets is a major challenge ever for professionals. Derivatives acts as a major tool for

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reducing the risk involved in investing in stock markets for getting the best results out of it.
The investors should be aware of the various hedging and speculation strategies, which can
be used for reducing their risk. Awareness about the various uses of derivatives can help
investors to reduce risk and increase profits. Though the stock market is subjected to high
risk, by using derivatives the loss can be minimized to an extent. Lilyana MIKOVA, Johan
OLOFSSION we believe our analysis shows that investors in segment one clearly prefer
simpler securities over more complex ones, all else equal, while investors in segment two
only take into consideration return. We believe this could be the basis for a more extensive
survey that sheds additional light on investor preferences and perceptions about complexity.
Furthermore, our paper demonstrates that the Discrete Choice Experiment methodology can
be successfully applied to a number of fields outside the realm of marketing. Nikola
TARASHEV, Kostas TSATSARONIS, DIMITRIOS KARAMPATO This special feature
compares data that can be extracted from option and cash markets in order to derive time
series of risk aversion indicators. An encouraging feature of the estimation results is that
these indicators co-move closely across market segments. Furthermore, we find evidence that
financial market dynamics tend to change systematically with the level of investors‟ effective
risk aversion. In particular, heightened risk aversion is associated with lower returns and
higher volatility, especially for equity markets, and weaker co-movement of asset classes.
Our findings thus have a bearing on the interpretation of signals sent by financial markets.
Incorporating changes in risk attitudes in such an interpretation adds information relevant for
understanding the functioning of financial markets.

1.3: LIMITATION OF THE STUDY

 Due to limited time frame, from the entire PATIA (BBSR) only 100 respondents were
considered for the survey.
 The period for the research was not enough to conduct the study in depth.

1.4: SCOPE OF THE STUDY

Investment portfolio management is essential to keep the investment fabric intact. The idea
portfolio management is regarded as the response of the financial markets to investor
consensus.

It relates to the promotion of better investment in the direction of positive contribution to

value creation.

 The present empirical study attempts to know the profile of investors and analyse the
characteristics of the investors.
 The study identifies investor awareness on investment products and the satisfaction of
various services rendered by the providers.
 The study tries to influence of demographic factors like gender, age, etc. on risk
tolerance level of the investors.
 The study is confined to select investment products.

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1.5: IMPORTANCE OF THE STUDY
In contrast to olden days when family businesses were dominating the economy, the
liberalization of economy has paved way for many businesses to enter the field of
competition. With the impact of globalization, companies are now into intense competition.
Diversification of business has become order of the day. Such expansion decisions have made
the companies to mobilize funds from the public. For this purpose, companies issue securities
in various forms like shares, debentures, bonds etc. General public has various avenues to
invest their funds and they choose an avenue which satisfies their needs by giving maximum
returns on investment, security of funds and social security. Investing is simple but nit easy.
Investors always want to make sure that the funds are invested and managed effectively as it
is their hard earned money. Investing in securities such as shares, debentures, and bonds is
profitable but involves a great deal of risk. In such investments both rationale and emotional
responses are involved. Investing in financial securities is considered as one is most risky as
well. Therefore creation of a portfolio helps to reduce risk, without sacrificing returns.
Portfolio management deals with the analysis of individual securities as well as with the
theory and practices of optimally combining securities into portfolios. An investor who
understands the fundamental principles and analytical aspects of portfolio management has a
better chance of success. An investor considering investment in securities is faced with the
problem of choosing form among a large number of securities and the manner in which is to
be allocated over this group of securities. people also faced with the problem of deciding
which securities to hold and how to invest in each. The investor tries to choose the optimal
portfolio taking into consideration the risk return characteristics of all possible portfolios.

But this investment decision of the investors does not remain rigid for a long period and
the composition of the portfolio keeps changing due to various reasons. The main reason for
changing the investment decision is fluctuation in prices of stock. This is mainly influenced
by goodwill of the company, the returns it gives to the investors etc. But in recent times
various scam and rift in family business have shaken the stock market and the crises is yet to
be overcome. Such incidents induce the investors to reconsider their investment decisions.

This study is an attempt to find out the factors that are considered to make investment
decision and the factors that cause the changes in the investment decision.

1.6: RESEARCH METHODOLOGY

A preliminary investigation was undertaken by surveying 100 investors through random
sampling method to identify the demographic profile of investors, their risk tolerance,
investor awareness and satisfaction. The purpose of the study was to test the validity of the
variables in the questionnaire and to confirm the feasibility of the study. Preliminary
investigation was conducted in areas of BBSR (CHANDRASEKHARPUR, PATIA). This
method is useful to measure the reliability and validity of the questionnaire through the
coefficient which depends upon the variance in the perception of investors. It was ascertained
that the items in lIKERT’s five point scale of the questionnaire are highly reliable and the

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samples satisfy the normal distribution rationally. Thus the research instrument proved valid
for further study.

The data was collected by means of a 2 section of questionnaire. The profile of the investors
was dealt in section1. Section 2 enumerates the overall investment portfolio followed by risk
tolerance awareness and satisfaction level of investors. The questionnaire with a covering
letter was personally administered to each and every respondent. The respondents were
requested to return the fielding questionnaire after 10days. The respondent took a time period
of 10 days to 2 months revert back the complete questionnaire.

The data collection started with segregating the region of study in PATIA (apartments).
CHANDRASEKHARPUR. BBSR. This was done to ensure better region coverage and to
receive quality data from sample with diverse characteristics. PATIA (apartments) and
CHANDRASEKHARPUR comprises of predominantly high number of potential investors,
owing to the development it has witnessed during the last decade. On the other hand some
area of Bhubaneswar has not grown comparatively and hence the proportion of potential
investors is relatively less. In addition, more number of banks are established in
Bhubaneswar, enhancing the availability of products to customers. As such, the data
collection segregated on the basis of region ensured that the random sample has quality
sample data to arrive at meaningful conclusion.

Sample size:
A sample size of 100 respondent was taken for the study on a random sampling basis. Among
100 respondent to whom it was administered only 85 respondents reverted back the filled in
questionnaire. Out of this only 75 to 80 of them were found to be suitable for analysis and
study. The study covers investors from selected parts of Bhubaneswar. Hence, the exact
sample of the study is 85.

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 CHAPTER 2

STOCK MARKET OPERATION:

A stock market is a market in which stocks are bought and sold. It is also called industrial
securities market, because it is the market for the trading of company stocks i.e. corporate
securities; both those securities listed on stock exchange as well as those only traded
privately. The term ‘Stock Market’ is often used as synonymous to ‘Stock Exchange’. But
there is a difference in the two terms. Stock exchange is a corporation in the business of
bringing buyers and sellers of stocks together. It is a major part of stock market, but not
whole of it. Because a stock market besides stock exchanges also includes the market for new
issue of securities. Thus the stock market can be divided into two constituents as follows: -

1. Primary Market or New Issue Market

2. Secondary Market or Stock Exchange

: PRIMARY MARKET
Primary stock markets are also called new issue markets. A primary market is the market in
which assets are sold for the first time. In other words, it is that market in which new shares,
debentures etc are bought and sold. The essential function of the primary market is to arrange
for the raising of new capital by corporate enterprises, whether new or old. The firms raising
funds may be new companies or old companies, planning expansion.
The issues of the new firms are called “initial issues” and those of old firms already existing
are called “further issues”. Initial capital is raised by issuing ordinary and
preference shares only, whereas further capital can be raised by selling all three types of
industrial securities. The new companies need not always be entirely new enterprises. They
may be private firms already in business, but going public to explain their capital base.
Going public means becoming public limited companies to be entitled to raise funds from
general public in the open market.

The volume of initial issues has mostly been smaller than that of further issues; it has mostly
accounted for 30 to 40 percent of the total issues till 1988-89, 10 to 28 percent during 1990-
97, and one percent to 48 percent after 1998. Thus, the rang of fluctuations in the share of
initial (and, there of further) issues in total issues has been, as in cases of other aspects of
stock market activity, very wide indeed; this share has varied between 10 to 63 percent during
1957-97. There has been an inverse relationship between the volume of initial and further
issues in most of the years.

Financial Instruments in New Issue: – A number of securities are issued by companies in

the new issue markets. They include:
 Equity shares: – Equity shares represent the ownership position in the company. The
holders of the equity shares are the owners of the company, and they provide
permanent capital.
They have voting rights and receive dividends at discretion of the Board of Directors.
Preference Shares: – the holders of the preference shares have a preference
over the equity in the event of the liquidation of the company. The preference dividend rate is

5
fixed and known. A Company may issue preference with a maturity period (called
redeemable preference shares). A preference share may also provide for the accumulation of
dividend. It is called cumulative preference share.
Debentures: – Debentures represent long-term loan given by the holders of debentures to
the company. The rate of interest is specified and interest charges are treated deductible
expenses in the hands of the company. Debentures may be issued without an interest rate.
They are called zero-interest debentures. Such debentures are issued at a price much lower
than their face value. Therefore, they are also called deep-discount
debentures/bonds.
Convertible Securities: – A debenture or a preference share may be issued with the feature
o of being convertible into equity shares after a specified period of time at a given price. Thus
a convertible debenture will have features of debenture as well as equity.
Warrants: – A company may issue equity shares or debentures attached with warrants.
Warrants entitle an investor to buy equity shares after a specified period at a given price.
Cumulative Convertible Preference Shares (CCPS): – CCPS is an instrument giving regular
returns at 10% during the gestation period from three years to five years and equity benefit
thereafter introduced by the Government in 1984 CCPS has, however, failed to catch the
investor’s interest mainly because the rate of return was considered to be too low in the initial
years and the provision for conversion into equity was also unattractive if the company failed
to perform well.
Zero Coupon Bonds and Convertible Warrants: – These are two new instruments that have
been floated by certain companies. Their overall impact and popularity will be known only in
the years ahead.

: SECONDARY STOCK MARKETS (STOCK EXCHANGES)

A stock exchange is an organized market for sale and purchase of listed existing shares and
other corporate securities. It is a platform for bringing together the buyers and sellers of
securities. The securities which may be bought and sold in stock exchange generally includes
shares and debentures of public companies. These may include Government securities and
bonds issued by municipalities, public corporations, utility undertakings etc. Securities held
by the investors are also traded on the stock exchange. Only listed securities are dealt in stock
exchanges. The listed securities are those securities that appear on the approved list of stock
exchange. The association or body of individuals generally organizes it. Hence it is defined as
an association or body of individuals established for the purpose of assisting and controlling
business buying, selling and dealing in securities.
The stock markets play an important role in the mobilization of financial resources for the
corporate sector. They provide an organized market for transactions in shares and
other securities.

Organization and Structure of Stock Exchanges in India: –

The number of stock exchanges in India has increased from nine in 1979-80 to 25 till now.
Presently, the stock market in India consists of twenty three regional stock exchanges and
two national exchanges, namely, the National Stock Exchange (NSE) and over the Counter
Exchange of India (OTC) The Bombay Stock Exchange (BSE) is the largest Stock Exchange,
in the country, where maximum transactions, in terms of money and shares take place. The
other major stock exchanges are Calcutta, Madras and Delhi Stock Exchanges. India has now
the largest number of organized and recognized stock exchanges in the world. All of them are

6
regulated by SEBI. They are organized either as voluntary, non-profit making associations
(viz., Mumbai, Ahamadabad , Indore), or public limited companies (viz., Calcutta, Delhi,
Banglore. .

In India mainly two stock exchanges:-

• BOMBAY STOCK EXCHANGE (BSE)

• NATIONAL STOCK EXCHANGE (NSE)

Bombay Stock Exchange Limited

India’s economy has been one of the talks of the business world. Starting with the
information technology and moving rapidly to outsourcing, this foreign market has truly
emerged in the past two years. With globalization on the rise and a strong demand for
information technology and outsourcing,
India will look attractive not only for investors but for businesses looking to go overseas.
This expansion will not only help India’s economy as money is invested into the
country, but companies will benefit due to lower operating costs and higher revenue. India
is benefiting from this shift of home front to the idea of outsourcing. With India
surging, so is the Bombay Sensex, as it reflected the state of the economy. The Bombay
Stock Exchange is known as the oldest exchange in Asia. It traces its history to the 1850s,
when 4 Gujarati and 1 Parsi stockbroker would gather under banyan trees in front of
Mumbai's Town Hall. The location of these meetings changed many times, as the number of
brokers constantly increased.
The group eventually moved to DALAL Street in 1874 and in 1875 became an official
organization known as 'The Native Share & Stock Brokers Association'. Later the
name changed to Bombay Stock Exchange or the BSE. In 1930, the BSE building was
established in today’s present downtown Mumbai. PREMCHAND ROYCHAND was
the leading stockbroker of that time, and he assisted in setting out traditions, conventions, and
procedures for the trading of stocks at Bombay Stock Exchange. . In 1956, the Government
of India recognized the Bombay Stock Exchange as the first stock exchange in the country
under the Securities Contracts Regulation Act. The Bombay Stock Exchange changed into
the E-trading system in 1995. The Bombay Stock Exchange Sensitive Index was initially
composed of 30 stocks in April 1979. These 30 stocks in various sectors are one-fifth the
market cap of the Sensex.
Currently, India has 10,000 listed companies on the Bombay Stock Exchange. This is the
largest amount of total companies in one exchange.
The technology that is operated in the BSE is getting advanced as stock information can be
accessed in 417 cities and towns in India” (BSE Sensex).The Sensex broke 2000 rupees on
January 15, 1992 because of a liberal economic policy proposed by the finance minister (BSE
Sensex). This mark seemed important because it allowed the economy to open up to new
ideas and trade with other countries. The import and export companies in India began trading
and gaining revenue. On December 30, 1999, the Sensex reached 5000 rupees because BJP
led the coalition that won majority in the nation’s election (BSE Sensex). This was big
movement because the BJP coalition was heavily focused on bringing the economy back to
its feet. India was beginning to grow and see a more promising future as the economy started
to shift to Information Technology. This field not only helped India grow and develop, but it
was in demand and many countries began to utilize its attributes. India was beginning to
boom and the sensex was on the rise. On January 2, 2004, the “InfoTech” boom took place

7
and India was the founder of this main sector. India was not only developing the inner
services in the county, but information technology began spreading widespread around the
world. Companies were beginning to come into India and establish a hub for business.
Billions of dollars were being invested not only into the country, but also into the stock
market. This strong movement made India’s economy look attractive to foreign investors.
The boom wasn’t only affecting the information technology sector, but telecom and energy
started coming around. Reliance did not only offer telecom, but energy started to develop.
The company was started by DHIRUBHAI AMBANI in the early 1980’s but didn’t start
expanding until 1999 (Reliance Industries Limited). Reliance was climbing high and hitting
new targets as the company was soaring in India and controlling the market share in energy
and telecom.
DHIRUBHAI AMBANI set out high standards and a strong vision for his company to
succeed, but he couldn’t see what the future of Reliance was going to be because he died on
July 6, 2002. The company was left in the hands of his sons: MUKESH and ANIL AMBANI,
who wanted to follow in the footsteps of their father and carry out his dreams. Unfortunately,
MUKESH and Anil saw different visions and parted ways. The company was split into the
three groups: Reliance, Reliance Industries Limited, and Reliance Energy on June 20 ,2005
(Reliance Industries Limited). Reliance consists of broadband and telecommunications in
India and other Asian countries. The telecom sector is an emerging market because of the
high growth in information technology and process development. With technology in demand
in India, Reliance is able to control the market share in cellular technology and service,
broadband, local phone service, and other communication services. MUKESH AMBANI
heads Reliance.
ANIL AMBANI decided go with the industrial division of the company, which includes
Reliance Industries Limited. Reliance Industries Limited is a private sector that in one of
India’s leaders in conglomerates. Other products offered by this company are petrochemicals
and garments (Reliance Energy). Anil is also the head of Reliance energy with provides
electricity to many areas in India. This is vast and growing field for the because of the major
control in providing electricity for India. News of the split between the two brothers hit
Mumbai and the Sensex exploded to 7000 rupees (BSE Sensex). Investors sought more areas
of interest in the Indian market and started buying up shares in various sectors. The split
proved very worthy because the India’s main market not only consisted of information
systems, but now it had a foot in energy and basic materials.
Reliance now had many fields to put its hands in the foreign market and grow, but the moves
it made had the Sensex rolling and an attractive play for long-term investment. With unstable
world oil prices and interest rate hikes going on, many investors decided that it was time to
start looking abroad. This was a movement that started a particular trend to start holding
more investments aboard than in one’s country. The precious metals index that includes:
gold, copper, silver, and platinum all started to move. India was one of the main consumers
and importers of these metals. The use of the metals and world demand affected the Sensex
as it climbed above 8000 rupees on September 8, 2005 (BSE Sensex). The foreign investors
saw India as a main target of investment because the market was relatively cheap compared
to the domestic market. The growth rate in India was also more than the domestic market.
Lastly, India had a steady GPD figure. Unlike China, India’s growth rate and steady market
rate made it a favorable target for investment.
The foreign investment trend continued from September to November 28, 2005, when the
Sensex surpassed the 9000-rupee mark (BSE Sensex). The sector that sparked this rally was
the banking and brokerage sector. The Sensex is continuing to grow despite interest worries
and the momentum is pushing stocks and commodities higher. On February 7, 2006, the

8
Sensex rallies to the 10,000-rupee mark (BSE Sensex). The momentum swing continues as it
heads for the budget meetings and the economic reports show no signs of slow growth in
India’s economy. The Sensex now shares its market capitalization with foreign and domestic
investors. This move not only affected the shares on the Sensex, but India American
Depository Receipts (ADR’s) were soaring on the NASDAQ. On March 27, 2006, the Sensex
rose above 11,000 rupees on Wipro’s and Infosys’s better than expected earnings report (BSE
Sensex). Profits doubled from the previous year and the companies were hitting new
milestones.

The demand for the It still continues in the world and the major contracts are given to the
best of breed in the sector. India’s rapid pace market didn’t stop from there. All sectors
traded on the Sensex started going up. Shortly after the 11,000 mark, a new breed of foreign
investors entered the Indian market. The bears of Asia started to upgrade the Sensex as an
outperform rating which to many people on Wall Street means buy. The movement hit
Mumbai and the Sensex crossed 12,000 rupees (BSE Sensex). January 8, 2008 is considered
a golden day in the history of the Indian stock markets as the Sensex touched a record
21,077.53 in intra-day trading.
It closed the day at 20,873. Analysts expected the Sensex to touch 25,000 by the end of
2008; some even saw it touching 27,000. But Agarwal had warned then
that "because of a sudden crisis of confidence, there would be a flight of foreign institutional
investor (FII) money out of the country". He pointed out that if $12 billion of FII money was
to leave within a quarter, the stock market would drop by approximately 30 per cent to the
level of 14,000. By July 8, 2008, Agarwal's predictions came true. And then the world
economy was sucked into the vortex of one of the worst recessions in recent times. On
October 24, the Sensex plunged by 1,070.63 points (10.96 per cent) to close at 8,701.07, and
sank further to a low of 8,160 on March 9, 2009. Since then it has climbed gradually to hover
very close to the 18,000-mark in April 2010.

National Stock Exchange

National Stock Exchange of India (NSE) is India's largest Stock Exchange & World's third
largest Stock Exchange in terms of transactions. Located in Mumbai, NSE was promoted by
leading Financial Institutions at the behest of the Government of India, and was incorporated
in November 1992 as a tax-paying company. In April 1993, NSE was recognized as a Stock
exchange under the Securities Contracts (Regulation) Act-1956. NSE commenced operations
in the Wholesale Debt Market (WDM) segment in June 1994. Capital Market (Equities)
segment of the NSE commenced operations in November 1994, while operations in the
Derivatives segment commenced in June 2000.
NSE has played a catalytic role in reforming Indian securities market in terms of
microstructure, market practices and trading volumes. NSE has set up its trading system as a
nation-wide, fully automated screen based trading system.
It has written for itself the mandate to create World-class Stock Exchange and use it as an
instrument of change for the industry as a whole through competitive pressure. NSE is set up
on a demutualised model wherein the ownership, management and trading rights are in the
hands of three different sets of people. This has completely eliminated any conflict of
interest.

9
The Organization:
The National Stock Exchange of India Limited has genesis in the report of the High Powered
Study Group on Establishment of New Stock Exchanges, which recommended promotion of
a National Stock Exchange by financial institutions (FIs) to provide access to investors from
all across the country on an equal footing. Based on the recommendations, NSE was
promoted by leading Financial Institutions at the behest of the Government of India and was
incorporated in November 1992 as a tax-paying company unlike other stock exchanges in the
country.

NSE Objectives:
 Establishing nationwide trading facility for all types of securities
 Ensuring equal access to investors all over the country through an appropriate
telecommunication network
 Providing fair, efficient & transparent securities market using electronic trading
system
 Enabling shorter settlement cycles and book entry settlements
 Meeting International benchmarks and standards
 Within a very short span of time, NSE has been able to achieve its objectives for
which it was set up. Indian Capital Markets are a far cry from what they were 12 years
back in terms of market practices, infrastructure, technology, risk management,
clearing and settlement and investor service. To ensure continuity of business, NSE
has built a Full Fledged BCP site operational for last 7 years.
NSE's Markets:
NSE provides a fully automated screen-based trading system with national reach in
the following major market segments:-

• Equity OR Capital Markets {NSE's market share is over 65%}

• Futures & Options OR Derivatives Market {NSE's market share over 99.5%}
• Wholesale Debt Market (WDM)
• Mutual Funds (MF)
• Initial Public Offers
• NSCCL

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 commenced clearing operations in April 1996.
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 assumes the counter-party risk of each member and
guarantees financial settlement. 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.

10
It was set up with the following objectives:

• 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 commenced clearing operations in April 1996. It has since completed more than
1800 settlements (equities segment) without delays or disruptions.

Clearing
Clearing is the process of determination of obligations, after which the obligations are
discharged by settlement.
NSCCL has two categories of clearing members: trading members and custodian. The
trading members can pass on its obligation to the custodians if the custodian confirms the
same to NSCCL.
All the trades whose obligation the trading member proposes to pass on to the custodian
are forwarded to the custodian by NSCCL for their confirmation. The custodian is required to
confirm the trade on T + 1days basis .once, the above activities are completed, NSCCL starts
its function of Clearing. It uses the concept of multi-lateral netting for determining the
obligations of counter parties. Accordingly, a clearing member would have either pay-in or
pay-out obligations for funds and securities separately. Thus, members pay-in and pay-out
obligations for funds and securities are determined latest by T + 1 day and are forwarded to
them so that they can settle their obligations on the settlement day (T+2).

•IISL (India Index Services & Products Ltd).

(IISL) is a joint venture between the National Stock Exchange of India Ltd. (NSE) and
CRISIL Ltd. (formerly the Credit Rating Information Services of India Limited). IISL has
been formed with the objective of providing a variety of indices and index related services
and products for the capital markets.

IISL 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 IISL's equity indices.

IISL - Products & Services

IISL offers a wide range of products and services which are key support tools for the equity
markets. We provide reliable, accurate and valuable data on indices and index related
services to cater to the needs of various segments of users. Our speciality is indices based on
Indian equity markets, which may be used for benchmarking, trading or research. Use of IISL
data or name or indices requires a license or subscription.

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•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 Trust of
India (UTI) to promote dematerialisation 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 and settlement in dematerialised form and thus
completely eliminated the risks to investors associated with fake/bad/stolen paper.

 Dot Ex International Limited

"The data and info-vending products of the National Stock Exchange are provided through a
separate company Dot Ex International Ltd., a 100% subsidiary of NSE, which is a
professional set-up dedicated solely for this purpose."

: DERIVATIVES

INTRODUCTION

BSE created history on June 9, 2000 by launching the first Exchange traded Index Derivative
Contract i.e. futures on the capital market benchmark index - the BSE Sensex. The
inauguration of trading was done by PROF. J.R. VERMA, member of SEBI and chairman of
the committee responsible for formulation of risk containment measures for the Derivatives
market. The first historical trade of 5 contracts of June series was done on June 9, 2000 at
9:55:03 a.m. between M/s KAJI & MAULIK Securities PVT. Ltd. and M/s Emceez Share &
Stock Brokers Ltd. at the rate of 4755.In the sequence of product innovation, the exchange
commenced trading in Index Options on Sensex on June 1, 2001.
Stock options were introduced on 31 stocks on July 9, 2001 and single stock futures were
launched on November 9, 2002. September 13, 2004 marked another milestone in the history
of Indian Capital Markets, the day on which the Bombay Stock Exchange launched Weekly
Options, a unique product unparalal in derivatives markets, both domestic and international.
BSE permitted trading in weekly contracts in options in the shares of four leading companies
namely Reliance, Satyam, State Bank of India, and Tisco in addition to the flagship index-
Sensex.

Types of Products:

Index Futures
A futures contract is a standardized contract to buy or sell a specific security at a future date
at an agreed price. An index future is, as the name suggests, a future on the index i.e. the
underlying is the index itself.
There is no underlying security or a stock, which is to be delivered to fulfill the obligations as
index futures are cash settled. As other derivatives, the contract derives its value from the
underlying index. The underlying indices in this case will be the various eligible indices and
as permitted by the Regulator from time to time.

12
Index Options
Options contract give its holder the right, but not the obligation, to buy or sell something on
or before a specified date at a stated price. Generally index options are European Style.
European Style options are those option contracts that can be exercised only on the expiration
date. The underlying indices for index options are the various eligible indices and as
permitted by the Regulator from time to time.

• Stock Futures
A stock futures contract is a standardized contract to buy or sell a specific stock at a future
date at an agreed price. A stock future is, as the name suggests, a future on a stock i.e. the
underlying is a stock. The contract derives its value from the underlying stock. Single stock
futures are cash settled.

• Stock Options
Options on Individual Stocks are options contracts where the underlying are individual
stocks. Based on eligibility criteria and subject to the approval from the regulator, stocks
are selected on which options are introduced. These contracts are cash settled and are
American style. American Style options are those option contracts that can be exercised on or
before the expiration day.

2.4: TRADING WITH STOCK MARKET

This section will introduce us about the process and instruments used to help a customer or a
client to trade with MOTILAL securities. This process is almost similar to any other trading
firm but there will be some difference in the cost of brokerage commission.

TRADING: It is a process by which a customer is given facility to buy and sell share this
buying and selling can only be done through some broker and this is where MOTILAL helps
its customer. A customer willing to trade with any brokerage house need to have a demand
account, trading account and saving account with a brokerage firm.

Techniques and instruments for Trading

The various techniques that are available in the hands of a client are:
1. Delivery
2. Intraday
3. Future
4. Forwards
5. Options
6. Swaps

Basic requirement for doing Trading

Trading requires opening a Demand account. Demand refers to a dematerialized account.
You need to open a Demand account if you want to buy or sell stocks. So it is just like a bank
account where actual money is replaced by shares. We need to approach the depository
participants, to open Demand account.

13
 A depository is a place where the stocks of investors are held in electronic
form. The depository has agents who are called depository participants. Think of it like a
Bank. The head office where all the technology rests and details of all accounts held is like
the depository. And the DPs are the branches that cater to individuals.

There are only two depositories in India:-

 The National securities ltd(NSDL)
 Central Depository services ltd(CDSL)

Capital market participants

 Banks
 Exchanges
 Clearing corporations
 Brokers
 Custodians
 Depositories
 Investors
 Merchant bankers

Types of Investors
 Institutional investors- (mutual funds/ FI/FIIS/Banks)
 Retail investors
 Day trader
 Hedgers

Combination of future & option

Hedging means, minimizing the risk / minimizing the losses .Under index futures and index
options investor can minimize his losses. Hedging does not remove losses but removes
unwanted exposure / unnecessary risks. One should not enter into a hedging strategy hoping
to take excess profits; all it can do is reduce the risk.

Parameter of Investors
The nature of investment differs from individual to individual is unique to each one because
it depends on various parameters like future financial goals, the present & the future income
model, capacity to bear the risk, the present requirements and lot more. As an investor
progresses on his/her life stage and as his/her financial goals change, so does the unique
investor profile. Economic development of a country depends upon its investment. The
emerging economic environment of competitive markets signifying customer’s sovereignty
has profound implications for their savings and investment. Investment means person’s
commitments towards his future.

INVESTMENT
The word “investment” can be defined in many ways according to different theories and
principles. It is a term that can be used in a number of contexts. However, the different
meanings of “investment” are more alike than dissimilar.
Generally, investment is the application of money for earning more money. Investment also
means savings or savings made through delayed consumption.
According to economics, investment is the utilization of resources in order to increase income
or production output in the future.
14
An amount deposited into a bank or machinery that is purchased in anticipation of earning
income in the long run are both examples of investments. Although there is a general broad
definition of the term investment, it carries slightly meanings to different industrial sectors.
According to economists, investment refers to any physical or tangible asset, for example, a
building or machinery and equipment.
On the other hand, finance professionals define an investment as money utilized for buying
financial assets, for example stocks, bonds, bullion, real properties, and precious items.
According to finance, the practice of investment refers to the buying of a financial product or
any valued item with an anticipation that positive returns will be received in the future. The
most important feature of financial investments is that they carry high market liquidity. The
method used for evaluating the value of a financial investment is known as valuation.
According to business theories, investment is that activity in which a manufacturer buys a
physical asset, example, stock of production equipment, in expectation that this will help the
business to prosper in the long run.

Characteristics of an investment decision:

1. It involves the commitment of funds available with you would be getting in the
future.
2. The investment leads to acquisition of a plot, house, or shares and debentures.
3. The physical or financial assets you have acquired are expected to give certain
benefits in the future periods. The benefits may be in the form of regular revenue
over a period of time like interest or dividend or sales or appreciation after some
point of time as normally happens in the case of investment in land or precious
metals.

Essentials of Investment
Essentials of investment refer to why investment, or the need for investment, is required. The
investment strategy is a plan, which is created to guide an investor to choose the most
appropriate investment portfolio that will help him achieve his financial goals within a
particular period of time. An investment strategy usually involves a set of methods, rules, and
regulations, and is designed according to the exchange or compromise of the investors risk
and returns. A number of investors like to increase their earnings through high risk
investments, whilst others prefer investing in assets with minimum risk involved. However,
the majority of investors choose an investment strategy that lies in the middle.

Investment strategies can be broadly categorized into the following types:

 Active strategies: one of the principle active strategies is market timing(an investor is
able to move into the market when it is on the low and sell the stocks when the market
is on the high), which is applied for maximizing yields.
 Passive strategies: frequently implemented for reducing transaction costs.

One of the most popular strategies is the buy and hold, which is basically a long term
investment plan. The idea behind this is that stock markets yield a commendable rate of
return is spite of stages of fluctuation or downfall. Indexing is a strictly passive variable of
the buy and hold strategy and, in this case, an investor purchase a limited number of every
share existing in the stock market index, for example the standard and poor 500 index, or
more probably in an index fund, which is a form of a mutual fund.

15
Additionally, as the market timing strategy is not applicable for small scale investors, it is
advisable to apply the buy and hold strategy. In case of real estate investment the retail and
small scale investors apply the buy and hold strategy, because the holding period is normally
equal to the total span of the mortgage loan.

PRINCIPLES OF INVESTMENT

Five basic principles serve as the foundation for the investment approach. They are as
follows:
 Focus on the long term
There is substantive empirical evidence to suggest that equities provide the maximum
risk adjusted returns over the long term. In an attempt to take full advantage of this
phenomenon, investments would be made with a long term perspective.

 Investment confer proportionate ownership

The approach to valuing a company is similar to making an investment in a business.
Therefore, there is a need to have a comprehensive understanding of how the business
operates.

 Maintain a margin of safety

The benchmark for determining relative attractiveness of stocks would be the intrinsic
value of the business. The investment manager would endeavour to purchase stocks
that represent a discount to this value, in an effort to preserve capital and generate
superior growth.

 Maintain a balanced outlook on the market

The investment portfolio would be regularly monitored to understand the impact of
changes in business and economic trend as well as investor sentiment. While short
term market volatility would affect valuations of the portfolio, this is not expected to
influence the decision to own fundamentally strong companies.

 Disciplined approach to selling

The decision to sell a holding would be based on either the anticipated price
appreciation being achieved or being no longer possible due to a change in
fundamental factors affecting the company or the market which it competes, or due to
the availability of an alternative that, in the view of the investment manager, offers
superior returns.

16
 INVESTMENT PROCESS

framing of
investment policy

investment
analysis

valuation

portfolio
construction

portfolio
evaluation

INVESTMENT TYPES
A particular investor normally determines the investment types, after having
formulated the investment decision, which is as capital budgeting in financial lexicon.
With the proliferation of financial markets there are more options for investing types:

According to the financial terminology investment means:

 A purchasing securities ion money or capital markets
 A buying monetary or paper financial assets in money or capital markets
 A investing in liquid assets like gold, real estate.

Investors assume that these forms of investment would furnish them with some revenue
by way of positive cash flow. These assets can also affect the particular investor positively or
negatively depending on the alterations in their values. Investments are often made through
the intermediaries who use money taken from individuals to invest. Consequently the
individuals are regarded as having claims on the particular intermediary. It is common
practice for the particular intermediaries to have separate legal procedures of their own.
These are the intermediaries:
 Banks
 Mutual funds
 Pension funds
 Insurance companies
 Collective investment scheme
 Investment clubs

Investment in the domain personal signifies funds employed in the purchasing of shares,
investing in collective investment plans or even purchasing an asset with an element of
capital risk. In the field of real estate, investments imply buying of property with the sole

17
purpose generating income. Investment in residential real estate could be made in the form of
buying housing property, while investments in commercial real estate is made by owing
commercial property for corporate purpose that are geared to generate some amount of
revenue.

INVESTMENT

The money you earn is partly spent and the rest saved for meeting future expenses. Instead of
keeping the savings idle you may like to use savings in order to get return on it in the future.
This is called investment.

Why should one invest?

One needs to invest:

 Earn return on your idle resources

 Generate a specified sum of money for a specific goal in life
 Make a provision for an uncertain future

OPTIONS AVAILABLE FOR INVESTMENT

One may invest in:-

 Physical assets like real estate, gold/jewellery, commodities etc.

 Financial assets such as fixed deposits with banks, small saving instruments with post
offices, insurance/provident/pension fund etc.
 Securities market related instruments like shares, bonds, debentures etc.

Various short term financial options available for investment:

Broadly speaking, savings bank account, money market/liquid funds are fixed deposits with
banks may be considered as short term financial investment options. Savings bank account is
often the first banking product use, which offers low interest (4-5% p.a.), making them only
marginally better than fixed deposits. Fixed deposits with
banks are also referred to as term deposits and minimum investment period for bank FDs is
30 days. Fixed deposits with banks are for investors with low risk appetite, and may be
considered for 6-12 months investment period as normally interest on less than 6 months
bank FDs is likely to be lower than money market fund returns.

Various long term financial options available for investment

Post office saving: post office monthly income scheme is a low risk saving instrument, which
can be availed through any post office. It provides an interest rate of 8% per annum, which is
paid monthly.

Public provident fund: A long term savings instrument with a maturity of 15 years and
interest payable at 8% per annum compounded annually. A PPF account can be opened

18
through a nationalized bank at anytime during the year and is open all through the year for
depositing money. Tax benefits can be availed for the amount invested and interest accrued is
tax free. A withdrawal is permissible every year from the seventh financial year of the date of
opening of the account and the amount of withdrawal will be limited to 50% of the balance at
credit at the end of the 4th year immediately preceding the year in which the amount is
withdrawn or at the end of the preceding year whichever is lower the amount of loan.

Company fixed deposits: These are short term (6 month) to medium term (3 to 5 years)
borrowings by companies at a fixed rate of interest which is payable monthly, quarterly, semi
- annually or annually. They can also be cumulative fixed deposits where the entire principal
along with the interest is paid at the end of the loan period. The rate of interest varies between
6-9% per annum for company FDs. The interest received is after deduction of taxes.

Bonds: It is a fixed income (debt) instrument issued for a period of more than one year with
the purpose of raising capital. The central or state government, corporations and similar
institutions sell bonds. A bond is generally a promise to repay the principal along with a fixed
rate of interest on a specified date, called the maturity date.

Mutual funds: These are funds operated by an investment company which raises money from
the public and invests in a group of assets (shares, debentures, etc.), in accordance with a
stated set of objectives. It is a substitute for those who are unable to invest directly in equities
or debt because of resource, time or knowledge constraints. Benefits include professional
money management, buying in small amounts and diversification. Mutual fund units are
issued and redeemed by the fund management company based on the fund’s net asset value
(NAV), which is determined at the end of each trading session. NAV is calculated as the
value of all the shares held by the fund, minus expenses, divided by the number of units
issued.

EQUITY INVESTMENT
Equity investment refers to the trading of stocks and bonds in the share market. It is also
referred to as acquisition of equity or ownership participation in the company. An equity
investment is typically an ownership investment, where the investor owns an asset of the
company. In this kind of investment there is always a risk of the investor not earning a
specific amount of money. Equity investment can also be termed as payment to a firm in
return for partial ownership of that firm. An equity investor, in some cases, may assume some
management control of the firm and also share in future profits.

DEBENTURES
In financial context, Debentures are debt instruments issued for a long term by governments
and big institutions for raising funds. The debenture has some resemblances to bonds but the
securitization terms and conditions are different for debentures compared to a bond. A
Debenture is commonly considered as insecure because there is no pledge or lien on
particular assets.

19
Types of debentures:-

 Convertible debenture
 Non-convertible debenture
 Participative debenture
 Non-participative debenture
 Redeemable debenture
 Irredeemable debenture

BOND MARKET

The bond market is a financial market that acts as a platform for the buying and selling of
debt securities. The bond market is a part of the capital market serving platform to collect
fund for the public sector companies, governments, and corporations. There are a number of
bonds indices that reflect the performance of a bond market. The bond market can also called
the debt market, credit market, or fixed income market. The size of the current international
bond market is estimated to be $45 trillion. The major bond market participants are:
governments, institutional investors, traders, and individual investors.

SHARE MARKET INVESTMENT

Shares are purchased and sold on the primary and secondary share markets. To invest in the
share market, investors acquire a call option, which is the right to buy a share, or a put option,
which is the right to sell share. In general, investors buy put option if they expect prices to
rise, and call option if they expect prices to fall. The value of a derivatives relevant to share
market investment are:

 Swap
 Futures contract
 Forward contract
 Option contract

Money market instruments include:

 Commercial papers
 Commercial bills
 Treasury bills
 Government securities having an unexpired maturity up to one year
 Call or notice money
 Certificate of deposits

The AMC retains the flexibility to invest across all the securities/instruments in debt and
money market.

Investment in debt securities will usually be in instruments which have been assessed as
“high investment grade” by at least one credit rating agency authorised to carry out such

20
activity under the applicable regulations. In case a debt instrument is not rated, prior approval
of the board of directors of Trustee and AMC will be obtained for such an investment.
Investment in debt instruments shall generally have a low risk profile and those in money
market instruments shall have an even lower risk profile. The maturity profile of debt
instruments will be selected in accordance with the AMC’s view regarding current market
conditions, interest rate outlook.

21
 CHAPTER 3

COMPANY PROFILE

3.1: BACKGROUND
The company was formed in 1987 by MOTILAL OSWAL and RAMDEO Agrawal after they
acquired membership on The BSE MOTILAL OSWAL was elected director and joined the
Governing Board of the Bombay Stock Exchange in 1998.

MOTILAL OSWAL Securities is a Depository Participant of NSDL and a Depository

Participant of Central Depository Service Limited (CDSIL) in 2000. The company started
offering Derivatives products and advisory services on both BSE as well as NSE in 2001.
In 2006 the company entered private equity and investment banking. In the same year,
MOTILAL OSWAL group acquired South Indian brokerage firm – Peninsular capital
markets. The company tied up with State Bank of India and Punjab National Bank in 2006
and 2007 to offer online trading to its customers. 2008 saw the company create one of India's
largest Equity. Dealing & Advisory rooms, spread over 26,000 SQ FT (2,400 m2) in
MALAD, Mumbai.
In January 2010, MOTILAL OSWAL Financial Services (through its subsidiary MOTILAL
OSWAL Securities Ltd.) received the final certificate of registration approval from Securities
& Exchange Board of India (SEBI) to set up a mutual fund business in the country.
MOAMC is a 100% subsidiary of MOTILAL OSWAL Securities Limited. It provides
Investment Management and Advisory Services to investors based within and outside India
and having Portfolio Management Services business, ETFs and Mutual Funds. MOTILAL
OSWAL Asset Management Company Ltd., one of the fastest growing Asset Management
Companies in India and has recently crossed the $1 billion in equity Assets Under
Management (AUM) mark in June 2015. Aspire Home Finance Corporation Limited
(AHFCL) is a professionally managed housing finance company. AHFCL is a subsidiary of
MOTILAL OSWAL Securities Limited (MOSL) which is a part of MOTILAL OSWAL
Financial Services Limited (MOFSL).

INTRODUCTION :

MOTILAL OSWAL Financial Services Ltd (MOFSL) is the holding company of MOTILAL
OSWAL Group – a Well diversified financial services group focused on wealth creation
through knowledge. The group was founded by MR. MOTILAL OSWAL and MR.
RAMDEO Agrawal over 30 years back (in 1987) as a small sub-broking unit and today we
are a multi-faceted financial services company with a presence in over 600 cities through
2200+ business locations ably managed by a team of more than 5000 employees.

Our network of business locations coupled with people across business units and a diverse
range of financial expertise; works synergistically to provide a whole host of products and
services across retail broking & financial products distribution, institutional broking, private
wealth management, investment banking, private equity (growth capital and real estate), asset
management and home finance. All these businesses are headquartered in a single location at
MOTILAL OSWAL Tower (Mumbai).

22
3.2: MOSL BUSINESS

RETAIL
BROKING
&
DISTRIBUTION
HOME INDUSTRIAL
FINANCE EQUITIES
MOTILAL
OSWAL
SECURITIES
ASSET PRIVATE
LIMITED
MANAGEMENT EQUITY

PRIVATE
INVESTMENT
WEALTH
BANKING
MANAGEMENT

MOSL BROKING & DISTRIBUTION

The Broking and Distribution business of MOTILAL OSWAL Securities Ltd (MOSL) helps
retail customers across the length and breadth of the country to take informed investment
decisions with a strong research based advisory service. Our services include products such
as Equities, Derivatives, Commodities, Depository Services, Portfolio Management Services
and distribution of Mutual Funds, Primary Equity Offerings and Insurance products.

With Solid Research, Solid Advice as our guiding philosophy, our clients are advised by the
centralized advisory and dealing desk based in Mumbai. Extensive use of technology and the
benefit of synergized operations under one roof have helped us deliver enhanced value to our
clients.

 We are able to provide these services to customers using a combination of 3

distribution models:-

Our unique Business Partner model provides a 'win-win-win' relationship for entrepreneurs,
customers and the company. Using a combination of centralized advisory, efficient execution
and strong back office processes, we are able to reach out to customers across the length and
breadth of the country.

23
We have a network of branches spread across major cities. They provide the company a local
footprint in important markets and also opportunities to cross-sell products and services. In
addition to our Pan-India presence, we have a strong online platform that can be accessed
through a Desktop application, on Web, or through the Mobile, enabling customers to trade
seamlessly and conveniently across various devices.

3.3: MOSL ASSET MANAGEMENT

At MOTILAL OSWAL Asset Management Company (MOAMC), our end over has been to
offer focused equity funds and PMS strategies based on our strength I.E Equity. We inherited
the equity expertise from our sponsor, MOTILAL OSWAL Securities Limited which has 30
years of experience in the same field. Our equity offerings have been riding on our
investment philosophy, Buy Right Sit Tight where Buy Right means buying quality
companies at a reasonable price and Sit Tight means staying invested in them for a longer
time to realize the full growth potential of the stocks. This philosophy has helped us become
company that has an Equity AUM of over RS. 33,200 Corers across Mutual Fund and
Portfolio Management Services as on March 2018.

Buy Right Stock Characteristics

 ‘Q ’quality denotes quality of the business and management.
 ‘G ’growth denotes growth in earnings and sustained ROE.
 ‘L’ length denotes longevity of the competitive advantage or economic moat of the
business.
 ‘P’ rice denotes our approach of buying a good business for a fair price rather than
buying a fair business for a good price.

Sit Tight Approach

 Buy and Hold: We are strictly buy and hold investors and believe that picking the
right business needs skill and holding onto these businesses to enable our investors to
benefit from the entire growth cycle, needs even more skill.
 Focus: Our portfolios are high conviction portfolios with 20 to 25 stocks being our
ideal number. We believe in adequate diversification but over-diversification results
in diluting returns for our investors and adding market risk.

BUSINESS HIGHLIGHTS
 Portfolio Management Services AUM over 15,000 Corer.
 Mutual Fund AUM over 18,200 Corer.
 We have created a first of its kind Value Investing Forum that gets India's foremost
Value Investing experts on one platform to provide insight and education on Value
Investing.
 MOTILAL OSWAL Value Index (MOVI) – An innovative vehicle to gauge equity
market based on the market valuations. This enables the investors to take advantage of
over/under valuation of market and accordingly expose their portfolios to equities.

24
  We are a true blue investment management house with focus on wholesale through
marquee distribution platforms and strong relationships, backed by consistent
performance.
 As part of recognition, it's been 3 years that we have been taking our business partner
to the AGM of Berkshire Hathaway to help them understand the nuances of value
investing.

3.4: MOSL PRODUCTS

Mutual Fund: Our open ended equity funds offer unique features such as No load on funds,
Low Churn and Focused Portfolio with maximum of 20-25 stocks

 MOTILAL OSWAL MOST Focused 25 Fund - Invests in enduring wealth creators.

 MOTILAL OSWAL MOST Focused Midcap 30 Fund - Invests in emerging wealth
creators.
 MOTILAL OSWAL MOST Focused Midcap 35 Fund - Invests in emerging and
enduring wealth creators.
 MOTILAL OSWAL MOST Focused Long Term Fund - Lock in fund that invests in
wealth creators plus Saves Tax.
 MOTILAL OSWAL MOST Focused Dynamic Fund – A fund that changes its actions
based on market conditions.

Portfolio Management Services (PMS):

 Value Strategy: Aims to deliver superior wealth creation by way of a long-term
compounding effect, with investments in good businesses run by great business
managers.
 Next Trillion Dollar Opportunity: Aims to deliver superior returns by investing in
focused themes which are part of the next trillion dollar GDP growth opportunity.
 India Opportunities Portfolio Strategy : Focused portfolio of high growth stocks
across market capitalization having the potential to grow more than the nominal GDP
for next 5-7 years and which are available at reasonable market prices

MOSL PRIVATE WEALTH CREATION

When it comes to managing wealth, options come in various shapes and sizes. Only
knowledge helps to identify the correct shape, your portfolio should take for it to grow. At
Motilal Oswal Private Wealth Management, we use knowledge to identify the right mix of
Fund Managers across asset classes to ensure that you have a winning portfolio.

The process of winning portfolios consists of 3 parts:

1. Our 20+ member strong product research and advisory team identifies simple and
well researched products keeping you at the centre of every recommendation

25
 2 .Our proprietary 4C Fund Manager process selects winning fund managers from
products identified
3 Regular knowledge interaction through Wealth Managers, empowered with the
science and art of investing. In addition to these interactions, you also experience new
insights and ideas on wealth creation through our exclusive knowledge events.

As of March 2018, we manage the wealth needs of over 2300 HNI families through a 140+
member team across 9 cities with assets under advisory of over RS. 14,700 Corer.

3.5; MOSL HOME FINANCE

Aspire Home Finance Corporation Limited (AHFCL) works on the business philosophy of
financial inclusion of LMI families by providing them an access to long term housing
finance. It operates in an income segment which is underserved by financial institutions.
AHFCL focuses exclusively on retail housing loans.

AHFCL Vision : To enable home ownership amongst lower and middle income Indian
families by providing hassle free housing loan assistance towards acquiring affordable
housing units thereby enhancing housing stock in India.

AHFCL is a subsidiary of MOTILAL OSWAL Securities Limited (MOSL) which is a part of

Motilal Oswal Financial Services Ltd (MOFSL) - a well-diversified financial services
company focused on wealth creation through knowledge.

MR. MOTILAL OSWAL is the Chairman of AHFCL Board. AHFCL is managed by a team
of professionals having strong experience in Indian housing finance market and headed by
MR. Anil Sachidanand, a veteran of over 25 years in Indian home finance industry.

At MOTILAL OSWAL Securities Ltd (MOSL), we offer Institutional Broking services in the
Cash and Derivatives segments. Our clients include the who’s who among Domestic
Institutional Investors (mutual funds, banks, financial institutions, insurance companies) and
Foreign Institutional Investors (FIIs). We also have a Corporate Broking desk that caters to
the specialized broking needs of ultra high net worth clients.

Highly-rated Research, strong Corporate Access, and efficient Sales & Trading support are
the cornerstones of our Institutional Broking services.

How we add value

‘Solid Research Solid Advice’ and ‘Knowledge First’ are not merely marketing slogans, but
business mantras that run in our organization’s DNA. Our research focus enables us to
differentiate ourselves from other financial services providers and add greater value to our
clients.

26
 RESEARCH:
 Our pioneering Research franchise includes strategists, economists, forensic
accountants and sector analysts. This enables us to provide insightful top-down macro
views on Indian equity markets and the eco-political environment as well as bottom-
up insights on companies, ground realities and accounting perspectives.
 Our Research coverage is market-leading in terms of breadth and depth. Our products
include Economic, Sector/Company and Thematic Research. We cover about 251
companies across 20 sectors, and 30 commodities.
 We offer one of the widest arrays of Research Products on Indian markets. In addition
to timely updates on companies and thematic insights on sectors, we have unique
offerings such as – Ground Reality, Eco Scope, inside, Travel, Wall of Worry, Ray of
Hope, Corner Office, Expert Speak, Policy Maker and Sector Periodicals.
 Our 35-member strong Research team consistently receives industry awards and
accolades.

SALES & TRADING

 Our Sales & Trading team, comprising top equity professionals, has a clear
understanding of our Research Products and translates our findings into actionable
advice for clients, based on their specific needs. Our clients include mutual funds,
pension funds, hedge funds, insurance companies and other financial institutions
around the world. As of March 2016, we have 572 institutions empanelled with us,
globally.
 Our specialized Trading desk for Cash Equities and Derivatives makes the market,
offers liquidity and aids price discovery. Our sophisticated systems include Direct
Market Access and Smart Order Routing, and we offer Support Services such as
Quantitative Analytical Support.

Highlights of our sales & trading team:

 Dedicated team for clients across geographies (North America, Europe, UK, Middle
East, Far East, India)
 Highly experienced sales professionals (passionate team that understands individual
client’s style and needs)
 Consistently rated among the best (Won best overall India salesperson ratings)
 Timely communication of actionable ideas (via Bloomberg, email, IM, phone)
 Rapid turnaround of all your queries and periodic data products (WIN – Week In
Nutshell, Weekly Valuation Guide, Monthly AMC holdings, Quarterly Flows,
Quarterly Shareholding Patterns)Multiple, secure global order routing platforms
(Bloomberg, Fidessa, Marco Polo, NY FIX, TNS)Zero counter-party risk.
 Broker not involved in order settlement process; handled by independent clearing
house & local custodian; internal compliance stress-tested for extreme volatility over
two decades.

27
MOSL PRIVATE EQUITY
MOTILAL OSWAL Private Equity (MOPE) is an asset management platform for
entrepreneurs by entrepreneurs. The company currently advises and manages funds for
investing in the Growth Capital and Real Estate space. MOPE was founded in 2006 to put the
investment philosophy and acumen of MOFSL into action. From the outset, MOPE’s focus
has been the mid-market segment, where there was an acute need of capital, and where the
MOFSL brand had significant leverage.

Core Principles
What we look for in companies before investing is only an extension of our own value
system. Therefore, what follows are the essential principles that guide our own organisation
and investment strategy.

Entrepreneurship
MOPE strives to partner with entrepreneurial talents across sectors. We look for highly
passionate, visionary, tenacious and committed entrepreneurs who have built excellent
businesses. We consider ourselves as a fund for entrepreneurs by entrepreneurs. Our
entrepreneurial approach is what differentiates us and an ability to work with Indian
sensibilities allows us to connect with business leaders and build deep, enduring relationships
with them. We seek to be a true valuable partner to the entrepreneurs we back.

Business Excellence
MOPE looks for businesses that have traits of excellence, have leadership potential, ability to
scale up and are of high quality. We believe that management foresight, tenacity and quality
of business operations, not intermittently but consistently form the foundations of business
excellence. We end over to partner with excellent management teams and work with them to
further enhance their companies.

Transparency and integrity

We continue to be guided by our core values of integrity and transparency in our investment
process. We also maintain these values in the investments we make. We look for businesses
and management teams with high level of transparency and integrity. These principles find
relevance and application.

3.6: MOSL BUSINESSES

Growth Capital
MOPE recognizes that successful investments are derived from a rigorous and efficient
investment process, pre and post deal. MOPE looks for businesses that have traits of
excellence, have leadership potential, ability to scale up and are of high quality. The team is
focused on identifying opportunities where multiple expansions can be achieved.
28
Real Estate
MOTILAL OSWAL Real Estate (MORE) partners with credible and reputed developers
across India's major cities, such as Mumbai, Delhi NCR, Bangalore, Pune, Hyderabad and
Chennai. MORE identifies investment opportunities with dominant players in each micro-
market with increased focus on mid-income housing. MORE has expertise across all
investment structures - equity, debt or mezzanine.

3.7: MOSL FUNDS

Growth Capital
 India Business Excellence Fund I (IBEF - I): 550 corers sector agnostic private equity
fund aimed at providing growth capital to mid-market enterprises in India.
 India Business Excellence Fund II (IBEF - II): 1,500 corers sector agnostic private
equity fund aimed at providing growth capital to Indian mid-market companies.
 India Business Excellence Fund III (IBEF - III): 2,000 corers sector agnostic private
equity fund aimed at providing growth capital to Indian mid-market companies.

Real Estate
 India Realty Excellence Fund (IREF): 200 corers domestic real estate fund focused on
investing in residential projects.
 India Realty Excellence Fund II (IREF - II): 500 corers domestic real estate fund
intends to capitalise on the existing counter-cyclical opportunities in real estate.
 India Realty Excellence Fund III (IREF - III): 1250 corers domestic real estate fund
focused on investing in tier 1 cities in India through structured transactions
accompanied with significant downside protection mechanisms.
 India Realty Excellence Fund IVI (IREF - IV): 1500 corers domestic real estate fund
primarily focused in top 6 cities in India through early stage mezzanine / structured
equity transactions.

We aim to deliver a focused transaction closure orientation which is facilitated by knowledge

across products and well entrenched relationships with the investor community, market
intermediaries and corporate sector.

We work in partnership with our clients and commit our resources end to end throughout the
transaction; ensuring timely execution with minimum disruption. Since inception in 2006, the
investment banking unit has executed milestone transactions relating to capital raising and
financial advisory, thereby establishing a solid track record in the investment banking space.

3.8: VISION
To be a globally respected wealth creator with an emphasis on customer care and a culture of
good corporate governance.

29
3.9: MISSION
To create and nurture a world class, high performance environment aimed at delighting our
customers.

3.10: OUR VALUES

Integrity
A company honouring commitment with highest ethical and business practices.

Teamwork
Attaining goals collectively and collaboratively.

Meritocracy
Performance gets differentiated, recognized and rewarded in an apolitical environment.

Passion & Attitude

High energy and self motivated with a “DO IT” attitude and entrepreneurial spirit.

Excellence in Execution
Time bound results within the framework of the company’s value system.

3.11: WHY INVEST IN MOTILAL

Industry Leader
 6-time winner of Best Performing Equity Broker (National) by UTI-CNBC TV18
Financial Advisor Awards.

 30 years of wealth creation driven by the philosophy of Solid Research, Solid Advice.

 10,00,000 customers with Rs. 69,561 Cr. plus depository assets.

 PAN India coverage across 2,200+ locations in over 500+ cities.

Solid Research
• India’s Best Market Analyst Award for IT & FMCG sector by Zee Business.

• 30,000+ research reports across 230+ companies and 21+ sectors.

• Dedicated large cap, mid cap & technical research teams.

• Daily, weekly, monthly, quarterly & yearly reports across asset class.

30
Solid Advice
• Advice across Equity, Derivatives, Commodity, Currency and Mutual Funds.

• Available across all devices - Mobile, Tablet, Desktop and Web.

• Customized actionable strategies to suit investment styles & risk profiles.

• Advanced tools & strategies for various time horizons ranging from hours, days, weeks
months and years.

Solid Technology
• Powerful, fast & secure technology across all platforms - Mobile, Tablet, Desktop and Web.

• Trade, Invest, Track, Review through a single login.

• Award winning Research & Solid Advice across all asset classes.

• LIVE streaming quotes and technical charts to help you make the right decision.

Products & Services

• One-stop financial superstore to get access to a range of products & services.

• Option to trade across exchanges - BSE, NSE, NCDEX, MCX .

• All products backed by our customized solid research & advice.

• Robust trading platforms, highly skilled dedicated advisors and Call & Trade desk.

Operational Efficiency
• India’s first broker to offer 15 min, 100 % paperless trading and demand account.

• Instant day account activation on receipt of application.

• Dedicated customer service team with a 6-hour query resolution TAT.

• Customer centric Risk Management System and real-time pay.

AWARDS
For his work and contribution to the capital markets, OSWAL has received several awards
including:

 MR. MOTILAL OSWAL, chairman & MD is awarded as outstanding institution

builder of the year in the AIMA managing India Awards.
 Special contribution award to India capital markets awarded by zee business.
 The hall of fame for excellence in franchising by franchising world magazine.
 Champion of ARTHSHASTRA by the rotary club.
31
ACHIVEMENT
OSWAL has received the RASHTRIYA SAMMAN PATRA awarded by the Government of
India for being amongst the highest income taxpayers in the country for a period of 5 years
from financial year 1995- 1999.

OSWAL is associated with various social organisations. He is the president of the jain
international trade organization (JITO) and a trustee of Agarwal-OSWAL chatravas of the
Rajasthan vidyarthi griha, among other.

32
 CHAPTER 4

DATA ANLYSIS & INTERPRETATION

DATA ANALYSIS
Primary data was collected through a formal questionnaire administered to the respondents to
identify the perception, involvement, and evaluation of the investment portfolios. The
secondary was collected references of books, reports, magazines, and also through various
websites. The data collected from both the sources were scrutinized, edited and tabulated.
The data is analysed using statistical tools that were t-test, one way analysis of variance.
Factors analysis, cluster analysis, multiple dicriminate analysis and chi-square analysis.

Q-1: AGE

NO. OF RESPONDENTS % OF RESPONDENTS

AGE
BELOW 20 0
20-30 41 48.23%
30-40 33 38.82%
ABOVE 40 11 13%
TOTAL 85 `100

AGE BELOW 20 20-30 30-40 ABOVE 40

ANALYSIS & INTERPRETATION: AS per the table I took 4 age group in between the age
group it was found that the age group of below 20 was no respondent, the major population of
investors was between 20-30 YRS i.e. 48%., the 30-40 YRS was 39% and above 40 YRS was
11%..

There is no awareness for investment in shares for the age group below 20 years. So the
organisation should take initiations to provide proper training programmes at different
schools and colleges to create awareness among the students.

33
Q-2: QUALIFICATION

SCHOOL 1 1%
GRADUATE 32 37.64%
POST GRADUATE 41 48.23%
OTHERS 11 12.94%
TOTAL 85 100%

SCHOOL GRADUATE POST GRADUATE OTHERS

ANALYSIS & INTERPRETATION: It was found that the qualification of investors was
48.23% post graduate, graduate was 37% and school and others was 12.94%.

34
Q-3: OCCUPATION

NO. OF RESPONDENTS % OF RESPONDENTS

STUDENTS 1 1%
SALARIED 43 50.58%
BUSINESS 28 32.94%
RETIRED 6 7.05%
HOUSEWIFE 7 8.23%
TOTAL 85 100

STUDENTS SALARIED BUSINESS RETIRED HOUSEWIFE

ANALYSIS & INTERPRETATION: As I found that the occupation of the investors was the
major was salaried which is 50.58%, also the students was investors which is 1%, and some
of them was business occupation which is 32.94%, and retired people was 7.05% and 8.23%
of housewife which is interested in investment.

35
Q-4: MONTHLY INCOME

<20000 12 14.11%
20000-40000 39 45.88%
40000-60000 20 23.52%
>60000 14 16.47%
TOTAL 85 100%

<20000 20000-40000 40000-60000 >60000

ANALYSIS & INTERPRETATION: This is monthly income of the investors which was
<20000 income is 14.11%, 20000-40000 income is also 45.88% and other investors whom
income was 40000-60000 which is 23.52%, >60000 is 16.47%.

36
Q-5: YEARLY SAVINGS

<50000 17 20%
50000-100000 55 64.70%
>100000 13 15.29%
TOTAL 85 100%

<50000 50000-100000 >100000

.

ANALYSIS & INTERPRETATION: This is the yearly savings of the respondents which was
20% of them was saving <50000, 64.70% was 50000-100000 savings, 15.29% of them whom
savings was >100000.

37
Q-6: DO HAVE A FORMAL BUDGET FOR FAMILY EXPENDITURE?

YES 40 47.05%
NO 45 53%
TOTAL 85 100%

YES NO

ANALYSIS & INTERPRETATION: It is for the family expenditure of investors which

47.05% have a formal budget for expenditure and 53% have not.

38
Q-7: WHAT IS YOUR MOTIVE BEHIND INVESTMENT?

BANK SAVING 15 17.64%

TAX SAVINGS 44 51.76%
FUTURE
20 23.52%
PERSPECTIVE
OTHERS 6 7.05%
TOTAL 85 100%

BANK SAVING TAX SAVINGS FUTURE PERSPECTIVE OTHERS

ANALYSIS & INTERPRETATION: This table is based on the motive of their investment as
I found that major respondents was for bank savings which is 17.64%, 23.52% of them was
for future perspectives and 7.05% of them savings for other purpose.

39
Q-8: WHAT IS YOUR INVESTMENT PATTERN?

SHORT TERMS 37 43.52%

LONG TERM 26 30.58%
BOTH 22 25.88%
TOTAL 85 100%

SHORT TERMS LONG TERM BOTH

ANALYSIS & INTERPRETATION: This is investment pattern of the respondents and I

found more no. Of respondents was investing for long term which is 30.58%, some
respondents investing for both short term & long term which is 25.88% and 43.58%
respondents investing for short term which is very less.

40
Q-9: WHAT ARE THE SAVING OBJECTIVES?

CHILDREN EDUCATION 21 25.70%

CHILDREN MARRIAGE 25 29.41%
HOME PURCHASE 15 17.64%
RETIREMENT 19 22.35%
OTHERS 5 5.88%
TOTAL 85 100%

CHILDREN EDUCATION CHILDREN MARRIAGE HOME PURCHASE RETIREMENT OTHERS

ANALYSIS & INTERPRETATION: This table and diagram is for saving objectives of the
respondents and as I found that more no. Of respondents was savings for purchasing home
which is 17.64%, tshen 26% of them was savings for their children marriage and 29.41% of
them for their retirement, and rest of the respondents was savings for their children education
and 25.70% of them for other purpose.

41
Q-10: DO YOU KNOW ABOUT THE EQUITY MARKET?

YES 75 88.23%
NO 10 11.94%
TOTAL 85 100%

YES NO

ANALYSIS & INTERPRETATION: This table is shows that the no. Of respondents who
know about equity market or not as I found that major respondents was know about the
equity market which is 88.23% and 11.94% of them was did not know about the equity
market.

42
Q-11: DO YOU HAVE DEMAT ACCOUNT?

YES 50 58.82%
NO 35 41.17%
TOTAL 85 100%

YES NO

ANALYSIS & INTERPRETATION: This diagram is shows that the no. Of respondents have
demand account or not so I found that major no. Of respondents have demand account which
was 58.52% and 41.17% of them have no demand account so they know about equity market
that easy to investing their money in market.

43
Q-12: ARE YOU INTERESTED IN INVESTING IN THE SHARE MARKET?

YES 71 83.52%

NO 14 16.47%

TOTAL 85 100%

YES NO

ANALYSIS & INTERPRETATION: This table shows that the respondents who were
interested to invest in share market as I found that 83.52% respondents was interested to
invest in share market and 16.47% are not interested.

44
Q-13: IF YES THEN WHICH COMPANY DO YOU HAVE DEMAT
ACCOUNT?

KOTAK SECURITIES 40 47.05%

MOTILA
35 41.17%
L OSWAL SECURITIES
OTHERS 12 14.11%
TOTAL 85% 100%s

KOTAK SECURITIES MOTILA L OSWAL SECURITIES OTHERS

ANALYSIS & INTERPRETATION: As per previous questions respondents the respondents

who says yes for the demand account so this the in which company they have demand
account so I found that 47.05% of respondents have account in KOTAK securities which
major and 41.17% of them have account in MOTILAL OSWAL securities and 14.11% of
them have account in other companies.

45
Q-S14: HOW MUCH MONEY DO YOU INVEST ANNUALLY IN EQUITY
MARKET?

<20000 25 29.41%
20000-40000 40 47.05%
40000-60000 15 17.64%
>60000 5 5.88%
TOTAL 85 100%

<20000 20000-40000 40000-60000 >60000

ANALYSIS & INTERPRETATION: It was found that the respondents how much they invest
in equity market so as per the diagram 20000-40000 investments was 47.05% which is major
out of 100% and 29.41% of them was investing <20000 and rest of the respondents were
investing 50000-150000 which is 18% and >150000 investing respondents was less which is
6%.

46
Q-15: what is the source do you use to make decision on investments in the
stock market?
PRESS 0 0%
T.V 3 3.52%
BROKER 25 29.41%
ADVICE FROM
50 58.82%
FRIENDS/FAMILY
OTHERS 7 8.23%
TOTAL 85 100%

PRESS T.V BROKER ADVICE FROM FRIENDS/FAMILY OTHERS

ANALYSIS & INTERPRETATION: As per the survey I found that the respondents was take
decision for investing in equity market more no. Of respondents was advice from friends/
family to invest in equity market which is 58.82%, 29.41% of them invest as per the broker
decision which is 30%, and others are follow press, t.v and other sources for investing in
equity market.

47
Q-16: what is the main reason you consider while investing in the stock market?

DIVIDEND LOW SHARE PRICE 2 2.35%

EXPECTATION OF SHARE PRICE INCREASE 13 `15.29%
EXPECTATION OF GOOD RETURN 70 82.35%
TOTAL 85 100%

DIVIDEND LOW SHARE PRICE EXPECTATION OF SHARE PRICE INCREASE

EXPECTATION OF GOOD RETURN

ANALYSIS & INTERPRETATION: This diagram is shows that major number of

respondents should investing for expectation of good return which is 82.35% and 15.29% of
them expect for share price increase and less number of respondents for dividend low share
price.

48
Q-17: what aspect of company do you think are taken into account while
purchasing share?

DIVIDEND POLICY 4 4.70%

COMPANY MARKET IMAGE 65 76.47%
CORPORATE GOVERNANCE
10 11.76%
STANDARD
LEVEL OF SHARE PRICE
6 7.05%
INCREASE
TOTAL 85 100%

DIVIDEND POLICY COMPANY MARKET IMAGE

CORPORATE GOVERNANCE STANDARD LEVEL OF SHARE PRICE INCREASE

ANALYSIS & INTERPRETATION: It shows that more number of people should purchase
their share as per the company market image which is 76.47% which is better for the
investors, 11.76% of them should follow the corporate governance standard and rest of the
respondents purchasing the share to follow the dividend policy which is 4.70% respondents
and 7.05% for the level of share price increase.

49
Q-18: what factor influencing you to sell your shares of a certain company?

LPW/NO DIVIDEND 13 15.29%

LOW SHARE PRICE 15 17.64%
EXPECTATION OF SHARE PRICE INCREASE 35 41.17%
BAD MARKET CONDITION 22 25.88%
TOTAL 85 100%

LPW/NO DIVIDEND LOW SHARE PRICE

EXPECTATION OF SHARE PRICE INCREASE BAD MARKET CONDITION

ANALYSIS & INTERPRETATION: It shows that the respondents want to sell their shares
as per expectation of share price decrease which is 71% and 17.64% of the respondents wants
to sell the low share price of the company, 25.88% of them want for bad market image and
15.29% for low/no dividend want to sell their shares.

50
Q-19: Do you participate in general shareholders meeting of the companies in
which you invest?

YES 75 88.23%
NO 5 5.88%
TOTAL 80 100%

YES NO

ANALYSIS & INTERPRETATION: As per question the respondents were very carefull
about their investment for that they should know about more about the company for that they
participate in general meeting in which they invest their money 88.23% of respondents
should response yes for participating and less of them should response no for not
participating the meetings.

51
Q-20: which pattern you follow while investing in the share market?

INTRADAY 50 58.82%
TRADING 10 11.76%
BOTH 25 29.41%
TOTAL 85 100%

INTRADAY TRADING BOTH

ANALYSIS & INTERPRETATION: As I asked in the respondents was major of them were
invest in intraday which is 58.82%, and 29.41% of them should invest in both (intraday &
trading) and less number of respondents was invest in trading which is 11.76%.

52
Q-21: Are you satisfied with the service of your existing trading company?

YES 15 17.64%
NO 65 76.47%
TOTAL 80 100%

YES NO

ANALYSIS & INTERPRETATION: As I found to get more investors for our company to
know about the satisfaction of respondents for the company which I found 76.47% of them
say no for their existing company and 17.64% of them was satisfied.

53
 CHAPTER 5

CONCLUSION:
Indian stock market is one of the oldest in Asia. Its history dates back to nearly 200 ago. The
earliest records of security dealings in India are major and obscure. The East India Company
was the dominant institution in those days and business in its loan securities used to be
transacted towards the close of the eighteenth century. The nature of investment differs from
individual to individual and is unique to each one because it depends on various parameters
like future financial goals, the present & the future income model, capacity to bear the risk,
the present requirements and lot more. As an investor progresses on his/her life stage and as
his/her financial goal change, so does the unique investor portfolio. Maximum investors are
aware of all the investment options. Investors do not invest in a single avenue. They prefer
different avenues and maximum investors prefer to invest in equities, mutual funds and
portfolio management services. The investment decision of investors is influenced by the
broker and through friends/family. Majority of investors invest 10-15% of their monthly
income. The most important factor is return which influenced the decision regarding
investment.

In today’s scenario when all are going to be online or in electronic form MOTILAL stock
broking securities creating awareness of online trading that client can trade from anywhere
from the world.

Risk management team of MOTILAL securities care of client portfolio and whenever the
value of his portfolio will go decrease by 30% client always informed by his relationship
manager.

In MOTILAL securities stock broking possibility of auction is very less because of large
client base, so he can sell share anytime.

54
 CHAPTER 6

ECOMMANDATION:
* The various investment tools which were mostly preferred by the investors were shares,
mutual funds etc. So there should be various other means to create awareness regarding the
potential of other instruments and the tools which can be beneficial to the investors.

* The investors consider various factors while making investment like risk, return, liquidity
etc. There should be rationale thinking so that the investors is able to know that at what point
of time they need capital appreciation instead of reducing the risk and when they need return
instead of liquidity.

*The satisfaction levels of various investors are different due to different investment
alternatives they option for. If they will be aware of each type of alternatives and the worth
of the alternatives then investing as per that there satisfaction level will also be high.

*investors should have the complete knowledge of stock market.

55
 BIBLOGRAPHY:

. WEBSITE:
www.google.co.in

Equity Market-INVESTOPIDIA

www.bseindia.com

www.moneycontrol.com

www.nism.ac.in

. MAGAZINES:

- Investors India
- NISM-Series-VIII: (Equity Derivatives)
- Business India

. BOOK REFFERED:

- KEVIN.S, Security Analysis and Portfolio management, Second

Edition
- HULL J.C, Pearson, Option, Futures and Other Derivatives

56