derivatives mba project

8/12/2019 derivatives mba project

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CHAPTER I

INTRODUCTION

Finance is the lifeblood of any business enterprise. No business activity can be

imagined, without sufficient finance or funds to meets its working capital and fixed

capital requirements.

Financial Management means planning, organizing, directing and controlling the

financial activities such as procurement and utilization of funds of the enterprise. It

means applying general management principles to financial resources of theenterprise.

Functions of Financial Management:

1. stimation of capital requirements

!. "hoice of sources of funds

#. Investment of funds$. %isposal of surplus

&. 'anagement of cash

(. )inancial controls

S a!es: * share is a single unit of ownership in a corporation , mutual fund , or anyother organization . * +oint stock company divides its capital into shares, which are

offered for sale to raise capital, termed as issuing shares. hus, a share is anindivisible unit of capital, expressing the proprietary relationship between the

company and the shareholder. he denominated value of a share is its face value- the

total capital of a company is divided into a number of shares.

he commencement of rading and %emat has transformed the capital

market in India. /ith the help of %emat and rading account, buying and selling of

shares has become a much faster and even process than trading with the assistance of

a physical broker. It provides for the assimilation of bank, broker, stock exchange and

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http://en.wikipedia.org/wiki/Corporationhttp://en.wikipedia.org/wiki/Mutual_fundhttp://en.wikipedia.org/wiki/Mutual_fundhttp://en.wikipedia.org/wiki/Mutual_fundhttp://en.wikipedia.org/wiki/Organizationhttp://en.wikipedia.org/wiki/Organizationhttp://en.wikipedia.org/wiki/Joint_stock_companyhttp://en.wikipedia.org/wiki/Joint_stock_companyhttp://en.wikipedia.org/wiki/Capital_(economics)http://en.wikipedia.org/wiki/Mutual_fundhttp://en.wikipedia.org/wiki/Organizationhttp://en.wikipedia.org/wiki/Joint_stock_companyhttp://en.wikipedia.org/wiki/Capital_(economics)http://en.wikipedia.org/wiki/Corporation


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depository participants. his helps to get rid of the painstaking procedure of investing

in stock exchange. oday, if one wants to invest in stock market, he has to contact a

broker on phone or meet him personally to place order. * broker generally gives such

importance and additional service only to high net worth customers. 0ut the

introduction of Internet trading, even a common or a small investor gets an

opportunity to avail the service at an affordable price which is much lesser than what

is charged by a physical broker over the phone. nline trading has given customer a

real time access to account information, stock quotes elaborated market research and

interactive trading. he prerequisites of Internet trading are a computer, a modem and

a telephone connection, registration with broker, a bank a2c and depository account.

he introduction of depository service is considered as the beginning of the trading of

3tocks 4 click. his means that you can arrange delivery of scrips sold anytime,

anywhere to anyone by click of a mouse. %ematerialization facilitates to keep the

securities in electronic form instead of paper form. It offers more advantageous than

the physical certificate form. %espite the advantages of %ematerialization, the

awareness levels among the investors relating to %emat account is not adequate

because of numerous reasons. he investors are not sufficiently responsive of the

concept of %emat account and the various financial institutions providing such

services.

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INDUSTRIA" O#ER#IE$

%asic Info!mation:&

he history of trading goes back to 156#, when a doctor in 'ichigan placed the first

nline trade using 7*% technology. /hat began with a single click over 1(

years ago has now taken the world by storm. he concept was visualized by one

0I88 9 7 7, a physicist and inventor who provide online quotes and trading

services to many :3 firms like fidelity, "harles 3chwab, and ;uick and 7eilly. his

led 0ill to wonder why, as an Individual investor, he had to pay a broker hundreds of

dollars for stock transaction.

/ith incredible foresight, he saw the solution at hand< someday everyone would owncomputers and invest through them with unprecedented efficiency and control. *nd

today his dream has become a reality.

/ith the global firms turning their eyes on IN%I* as a country with immense

potential for growth thanks to globalization and various economic reforms, the Indian

stock markets are places receiving a lot of attention. rading and investing in share is

gaining momentum and with the Internet facility virtually at every part of the country,

it has become a reality for even a smallest person wanting to invest his surplus money but did not know where to go until recently.

0esides familiarity with the stock market, the transaction process, and having an

account at s broker or sub broker, knowledge of basic investment information is also

important to making investment decisions.

E!a of Sc!i' less an( Pa'e!less t!a(ing:

o sort out the above mentioned problems and to restore the investors confidence in

the stock market the depository system was set up. It was against this background that

the =overnment of India enacted the %epositories *ct in 155(, which an era of scrip

less trading and settlement, efficient market infrastructure, investor protection,

reduced risks and transparency of transaction in the securities market.

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De'osito!) Act* +,,-:

he concept of %epository is known to the world since 15$5 when the first depository

was set up in =ermany. here were 11! depositories in operation by the year !>>1.

very depository operates under a country?s specific law and regulation in order toensure safety, liquidity, rights and liabilities to the security holders.

De'osito!):

* depository is an organization where the securities of an investor are held in

electronic form. * depository can be compared to a bank. o avail of the services of a

depository, an investor has to open an account with the depository through a

depository participant, +ust as he opens an account with the bank. @olding shares in

the account is a kin to holding money in the bank

*t present, India has only two depositories National 3ecurities %epository 8td.

AN3%8B and "entral %epository 3ervices 8td A"%38B.

N3%8 is the first depository in the county, which is promoted by three ma+or financial

institutions :nit rust of India, Industrial development 0ank of India and National

3tock xchange of India 8imited. he second depository of the country A"3%8B is set

up in 1555 by the 0ombay 3tock xchange and 0ank of India

@owever, most of the services offered by both these depositories are similar. oday

almost all the companies listed in dematerialized from with N3%8 are available with

"%38.

De'osito!) 'a!tici'ant:

* depository participant is an agent appointed by the depository and is authorized to

offer depository services to all investors. *n investor cannot directly open a %emat

account with the depository. *n investor has to open his account through a %9 only.

$

%AN. DEPOSITOR/@olds funds in accounts @olds securities in accountsransfers funds between accounts ransfers without handling securities3afekeeping of 'oney 3afekeeping of securities


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he %9 in turn opens the account with the depository. he %9 in turn takes up the

responsibility of maintaining the account and updating them as per the instructions

given by the investor from time to time. he %9 generates and provides the holdings

statement from time to time as required by the investor. hus, the %9 is basically the

interface between the investor and the depository.

he person who holds a %emat account is a beneficiary owner. In case of a +oint

account, the account holders will be beneficiary holders of that +oint account. he

%emat account number of the beneficiary holderAsB is known as the 0 Id. * %9 id is

the number of the depository participant allotted by the depository.

Functions of De'osito!) -

In the depository system, securities are held in depository accounts, which is more or

less similar to holding funds in bank account.

ransfer of ownership of securities is done through simple account transfers. his

method does away with all the risks and hassles normally associated with paperwork.

"onsequently, the cost of transacting in a depository environment is considerably

lower as compared to transacting in certificates. he depository system also allows

distribution of dividends through the 70I?s "3 system, whenever the participating

company has agreed to such services. ther entitlements such as bonuses, split ups

are also directly effected by the depository into the investor?s account. he following

can be held in the depository AelectronicB form-

3hares Alisted or unlistedB ,3tocks ,0onds ,%ebentures ,70I 7elief 0onds

,=overnment 3ecurities Athrough a primary %ealerB ,:nits of 'utual )unds

,"ommercial 9aper ,'oney 'arket Instruments etc.

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OPENIN0 A DEMATERIA"I1ATION ACCOUNT 2DEMAT A3C4

%emat refers to a dematerialized account. Cust as we have to open an account with a

bank if we want to save your money, make cheque payments etc, we need to open a

demat account if we want to buy or sell stocks. 3o it is +ust like a bank account where

actual money is replaced by shares. /e have to approach the %9s Aremember, they are

like bank branchesB, to open our demat account.

%emat account allows you to buy, sell and transact shares without the endless

paperwork and delays. It is also safe, secure and convenient.

8etDs say our portfolio has 1>> of 3atyam, &>of 3uzlon, !> of I"I"I 0*NE, &> of

ech 'ahindra and 1>> of "3 shares. *ll these will show in our demat account. 3o

we donDt have to possess any physical certificates showing that us own these shares.

hey are all held electronically in our account. *s we buy and sell the shares, they are

ad+usted in our account. Cust like a bank passbook or statement, the %9 will provide

you with periodic statements of holdings and transactions.

Individuals, companies, rusts, 9artnership firms, N7Is, @:), 0anks and Institutions

are allowed to open a depository account with any depository through a depository

participant. he investor would need to execute a standard form giving all his details, bank details, instruction details, nomination details and off course photograph and

signature. *long with this form, the investor would also have sign an agreement with

the depository participant which usually forms a standard part of the account opening

process. he details on the form have to be matched with a photocopy of the

investor?s passport, driving license etc. to certify the mentioned details. If the investor

is an N7I, then the client will have to provide overseas address, provide copy of 70I

*pproval, if any. he 70I *pproval is not mandatory for opening of a %9. *ccount but is required to receive shares into the account when purchased through the

secondary market.

A: P!oce(u!e fo! 'u!c asing (emate!iali5e( secu!ities

he procedure for purchasing dematerialized securities is also similar to the procedure

for

buying physical securities.

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%ENEFITS OF DEMATERIA"I1ATION ACCOUNT

P!ima!) 6enefits:

+&Safet) - If we are holding our shares, bonds etc in physical ApaperB form, thereare chances of its theft, mutilation, and loss. 'oreover, we are also exposed to

the risks of fake papers, bad delivery or delays at the time of transfer of

physical securities. @owever, in % '* accounts< we can preserve our long

term investments safely and securely.

7& Con8enience: /hen we want to sell our dematerialized shares or redeem ourdebentures in % '* account< there are no hassles of filling up transfer

forms, sending redemption requests or any other messy, costly and time

consuming paper work. /e can conveniently transfer our securities through

electronic transfers or +ust by signing one ?%elivery Instruction 3lipD, which is

nothing but our chequebook for % '* *ccounts.

Ot e! %enefits:

*part from the safety and convenience, there are lot more advantages of opening

% '* accounts. @ere are few of the most necessary reasons for having a % '*

account.

/e can park most of our investments including shares, bonds, debentures,

=old :nits, N3" and bonds in our % '* account. /e might not

immediately realize the benefits of having all the investments in % '*form. )or instance, if we change our residence, we +ust have to write to the %9

A%epository 9articipantB, which automatically gets our new address registered

with all the companies where we have invested our money.

/e do not have to remember the due dates of maturity of bonds, N3" and

debentures, as the redemption proceeds are automatically credited to our bank

account, which is linked with our % '* account.

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/e receive all the dividends and interests directly in our linked bank account.

In case of bonus, rights, split, merger or any other corporate actions,

everything takes place automatically. /e do not have to do anything except tofile the physical intimation letters sent by the 7egistrar and ransfer *gents.

Nowadays with the advent of online trading, we can perform online all the

activities associated with buy, sell and transfer of shares.

/ith a single nomination in your % '* account, we are nominating ourlegal heirs to all the investments held by us.

)or many public issues of bonds and debentures of reputed and trustworthy

companies, it is necessary to have a % '* *ccount, as the companies do

not allot securities in paper form.

3ince most of the process of buying and selling dematerialized securities is

electronic, there are no chances of signature mismatch.

limination of problems related to selling securities on behalf of a minor.

limination of problems related to change of address of investor, transmission

etc.

7eduction in handling of huge volumes of paper periodic status reports.

3o with %ematerialized 3ecurities, the entire process of transferring shares, bonds and

other financial assets has become smooth and swift. % '* *ccounts offer

numerous advantages and hence it makes sense for the retail investors to open

% '* *ccounts as early as possible.

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MECHANICS OF ON"INE TRADIN0

1>

"8I N 07 E 7 3 "E G"@*N=

9laces an orderthe net of the0rokerDswebsitethrough thedistinctive Idcode

*ccepts theorder, "hecksthe clientDsIdentity and9laces therder

*ccepts the order after checking thescrip limit of the

broker for the day

he settlement ofthe deal Abuy2sellorderB getsreflected in his%emat account.

9ays thexchangethrough hisowns accountand receives itfrom the clientaccount.

7eceives themoney andcompletes thesettlement

he client isintimated aboutthe execution ofthe deal by e mail.


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Featu!es Of Online T!a(ing

he nline rading is having many features which make it most suitable for theinvestors to go for. 3ome of these features are as follows-

F!ee(om of Info!mation:

he Internet can provide a new sense of control over your financial future. he

amount of investment information available online is truly astounding. ItHs one of the

best aspects of being a wired investor. )or the first time in history, any individual with

an Internet connection can-

Enow the price of any stock at any time7eview the price history of any stock in chart format

)ollow market events in depth

7eceive a wealth of free commentary and analysis about stock

markets and the global economy

"onduct extensive financial research on any company

Cont!ol ou! mone):

ne of the great appeals of using an online trading account is the fact that the account

belongs to you, and is under your direct control. /hen you want to buy or sell stock,

you no longer need to call your broker on the phone< hope that he is in the office to

place your order< possibly argue with the broker about the order< and hope that the

transaction is executed instantly.

Access to t e ma!9et:

*t the most basic level, an online trading account gives you more agility in buying

and selling stocks. his is through sophisticated information streams, dedicated

trading platforms and sophisticated tools for accessing the markets.

Offe!s g!eate! t!ans'a!enc):

nline trading offers you greater transparency by providing you with an audit trail.

his involves a complete integrated electronic chain starting from order placement, to

clearing and settlement and finally ending with a credit into your depository account.

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*ll these stages are sub+ect to inspection, thus bringing in transparency into the

system.

Re(uces t e settlement !is9:

his method of trading reduces the settlement risk for the investor, as in this case all

short sell orders are squared off at the specified cut off time and not allowed to be

carried forward .

Instant t!a(e o!(e! confi!mations:

very trade is confirmed immediately and you will receive an on screen confirmation

following every trade with full details for your records. his avoids costly errors that

would have been discovered when it is too late.

Integ!ate( Accounts:

ur 0ank, %epository and rading account are integrated for our convenience.

arious broking houses provide access to many of the popular banks .

%ENEFITS OF ON"INE TRADIN0:

+4 "ess Costl):

he most significant advantage of the nline broking is the cost reduction in the

brokerage. %ue to the power of the Internet one has the privilege of becoming the

clients of really large brokerages with the benefits of en+oying the low charges before

en+oyed only by the big players. *s the %9 account has got linked to the trading

account most players do not charge a minimum transaction cost thus truly allowing

one to buy a single share and achieve meaningful rupee price averaging whatever beyour buying power.

74 Peace of Min(:

ne can never have complete peace of mind but online investing does away with the

hassles of filling up instruction slips, visits to the broker for handing over these slips

and consequent costs.

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4 .ee'ing Reco!(s -

he site one trades on keeps a record of all transactions down to unexecuted orders

and cancelled orders thus keeping one abreast of all your transactions !$ hours a day.

No paperwork means more time at oneDs disposal for research and analysis.

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CHAPTER II

RESEARCH PRO%"EM

STATEMENT OF THE PRO%"EM

o understand about the company, its achievements and tasks, products and

services.

o collect information about thecompetitors, its products and services offered.

*fter understanding and collecting information about the organization and its

competitors, a trainee will be able to work well for the organization.

o 3tudy present online share trading.

Identify the areas where IN%I*0:883 3cores above its competitors and what

are its weak links.

Sco'e of t e Stu()

It provides a complete knowledge of various fundamental concepts of sharemarket and online trading.

It will help in analyzing the behavior of consumers and help in Enowing the

parameters of investment on which they would like to invest.

*lso through this pro+ect suggestions were recommended regarding the

behavioral pattern of investors towards different instruments.

)rom the study we will know about the companyDs strategy towards the

business.

O%=ECTI#ES OF THE STUD/:

o find out the point of view of Investors regarding the services provided by

%9.

o find the awareness of %emat account among employed investors.

o know the challenges faced in trading by traders in % 8@I city.

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o assess the perception of traders about Indialbulls securities private limited

in %elhi "ity.

o assess the satisfaction level of traders regarding services of Indiabulls

o know the market share of Indiabulls.o know the competitors of India0ulls in % 8@I city.

RESEARCH METHODO"O0/:

Resea!c Design:

7esearch %esign refers to Jframework or plan for a study that guides the

collection and analysis of dataJ. * typical research design of a company basicallytries to resolve the following issues-

aB %etermining %ata "ollection %esign

bB %etermining %ata 'ethods

cB %etermining %ata 3ources

dB %etermining 9rimary %ata "ollection 'ethods

eB %eveloping ;uestionnaires

fB %etermining 3ampling design

E>'lo!ati8e Resea!c Design:

xplorative studies are undertaken with a view to know more about the

problem. hese studies help in a proper definition of the problem, and development of

specific hypothesis is to be tested later by more conclusive research designs. Its basic

purpose is to identify factors underlying a problem and to determine which one of

them need to be further researched by using rigorous conclusive research designs.

Conclusi8e Resea!c Design:

"onclusive 7esearch 3tudies are more formal in nature and are conducted

with a view to eliciting more precise information for purpose of making marketing

decisions.

hese studies can be either-

aB %escriptive or

bB xperimental

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Data Collection:

Data Sources:

AiB 9rimary %ata

AiiB 3econdary %ata

P!ima!) Data - he required data was collected by way of distribution of

questionnaires to investors at random and by way of telephonic interviews and online

distribution of questionnaire.

ools2 echnique of data collection &

9ersonal Interview

"lose observation

3urvey conduction

Secon(a!) Data: *lready existing data is called secondary data. I collected them byfollowing method K

Internet0ooks

*rea selected for data collection %elhi

Data P!esentation an( Anal)sis:

1. 0ar graphs

!. 9ie %iagrams

#. "omparative analysis$. 3/ analysis

Sam'ling Plan:

%uration L wo A!B 'onths.

3ample size 1>>

3ampling used in data collection 7andom sampling

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"imitations of stu():

he respondents who have not given any information are not included in the

sample but do come under the population.

It was not possible to cover each and every client of each and every broking

house and hence a sample of 1>> people was taken.

he market share of all the online share trading products is only for the city

of %elhi. he market share of all the companies may differ in different cities.

It may also differ nationally.

%ue to the tough competition each M every broking firm is offering different

schemes like, free opening *2c or different advance brokerage schemes

where Indiabulls is lacking in this area.

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CHAPTER III

COMPAN/ PROFI"E

Indiabulls is IndiaDs leading )inancial 3ervices and 7eal state "ompany having over

($> branches across India. Indiabulls serves the financial needs of more than $,&>,>>>

customers with its wide range of financial services and products from securities,

derivatives trading, depositary services, research and advisory services, consumersecured and unsecured credit, loan against shares and mortgage M housing finance.

@aving around $>>> 7elationship 'anagers, Indiabulls helps its clients to satisfy their

customized financial goals. *n India bull through its group of companies has entered

into the Indian 7eal state business in !>>&. It is currently evaluating several large

scale pro+ects worth several hundred million dollars.

Indiabulls )inancial 3ervices 8td is a public company and listed on the National 3tock

xchange, 0ombay 3tock xchange, 8uxembourg 3tock xchange and 8ondon 3tock

xchange. he market capitalization of Indiabulls is approx :3 6>> million, and the

consolidated net worth of the company is approx :3 $>> million. Indiabulls and its

group companies have attracted :3 #>> million of equity capital in )oreign %irect

Investment A)%IB since 'arch !>>>.

Indiabulls ranks at 6!nd position in the list of most valuable companies in India.

Indiabulls is promoted by three engineers from the Indian Institute of echnology

AII B %elhi. )oreign Institutional Investors A)IIsB and foreign funds hold over (>

percent shareholding of Indiabulls. 3ome of the large shareholders of Indiabulls are

the largest financial institutions of the world such as )idelity )unds, "apital

International, =oldman 3achs, 'errill 8ynch, 8loyd =eorge and )arallon "apital.

here are approximately over $>,>>> shareholders of the company.

Indiabulls )inancial 3ervices is a retail financial services company providing a

diverse array of financial products and services, through its nationwide network of

over #>> Indiabulls offices, and services over !,&>,>>> clients spread across 11> cities

in India. Indiabulls, along with its subsidiary companies, offer consumer loans,

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brokerage and depository services, personal loans, home loans and other financial

products and services to the retail markets.

Indiabulls, which has a workforce of over 1>,>>> full time employees, reported :3

(> million in 9rofit before ax and :3 $& million in Net 9rofit for the first nine

months of the current financial year.

0usiness of the company has grown in leaps and bounds since its inception. Indiabulls

became the first company to bring )%I in Indian 7eal state through a C with

)arallon "apital 'anagement 88", a respected :3 based investment firm, Indiabulls

has demonstrated deep understanding and commitment to Indian 7eal state market

by winning competitive bids for landmark properties in 'umbai and %elhi.

Indiabulls =roup is one of the top business houses in the country with business

interests in 7eal state, Infrastructure, )inancial 3ervices, 7etail, 'ultiplex and

9ower sectors. Indiabulls =roup companies are listed in Indian and overseas financial

markets. he Net worth of the =roup exceeds :3% ! billion. Indiabulls has been

conferred the status of a O0usiness 3uper brandP by he 0rand "ouncil, 3uper brands

India.

Indiabulls )inancial 3ervices is an integrated financial services powerhouse providing

"onsumer )inance, @ousing )inance, "ommercial 8oans, 8ife Insurance, *sset

'anagement and *dvisory services. Indiabulls )inancial 3ervices 8td is amongst (6

companies constituting '3"I 'organ 3tanley India Index. Indiabulls )inancial is

also part of "83*Ds model portfolio of #> 0est "ompanies in *sia. Indiabulls

)inancial 3ervices signed a +oint venture agreement with 3ogecap, the insurance arm

of 3ocietQ =enerale A3oc=enB for its upcoming life insurance venture. Indiabulls

)inancial 3ervices in partnership with '' " 8imited, the largest commodity trading

company in India, is setting up IndiaDs $th 'ulti "ommodities xchange.

Indiabulls 7eal state 8imited is IndiaDs third largest property company with

development pro+ects spread across residential pro+ects, commercial offices, hotels,

malls, and 3pecial conomic Rones A3 RsB infrastructure development. Indiabulls

7eal state partnered with )arallon "apital 'anagement 88" of :3* to bring the

first )%I into real estate. Indiabulls 7eal state is transforming 1$ million sqft in 1(

cities into premium quality, high end commercial, residential and retail spaces.

Indiabulls 7eal state has diversified significantly in the following business verticals

within the real estate space- 7eal state %evelopment, 9ro+ect *dvisory M )acilities

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'anagement- 7esidential, "ommercial A ffice and 'allsB and 3 R %evelopment.

9ower- hermal and @ydro 9ower =eneration.

ype 9ublic company

raded as N3 - IN%I*0:883

03 - !&$$

Industry )inancial 3ervices , 7eal state, 9ower

)ounded 'ay, !>>>

@eadquarters =urgaon , India

Eey people 3ameer =ehlaut , "hairman M " , 7a+iv 7an+an, ice "hairman,

3aurabh 'ittal, ice "hairman

9roducts 3ecurities , "onsumer )inance ,'ortgages , 7eal state

mployees !>>>> A!>>FB

/ebsite www.Indiabulls.com

!>
http://en.wikipedia.org/wiki/Types_of_business_entityhttp://en.wikipedia.org/wiki/Ticker_symbolhttp://en.wikipedia.org/wiki/National_Stock_Exchange_of_Indiahttp://www.nseindia.com/marketinfo/companyinfo/companysearch.jsp?cons=INDIABULLS&section=7http://www.nseindia.com/marketinfo/companyinfo/companysearch.jsp?cons=INDIABULLS&section=7http://en.wikipedia.org/wiki/Bombay_Stock_Exchangehttp://www.bseindia.com/bseplus/StockReach/AdvanceStockReach.aspx?scripcode=532544http://en.wikipedia.org/wiki/Financial_Serviceshttp://en.wikipedia.org/wiki/Electrical_power_industryhttp://en.wikipedia.org/wiki/Gurgaonhttp://en.wikipedia.org/wiki/Sameer_Gehlauthttp://en.wikipedia.org/wiki/Security_(finance)http://en.wikipedia.org/wiki/Consumer_Financehttp://en.wikipedia.org/wiki/Consumer_Financehttp://en.wikipedia.org/wiki/Mortgageshttp://www.indiabulls.com/http://en.wikipedia.org/wiki/File:Flag_of_India.svghttp://en.wikipedia.org/wiki/File:Indiabulls_logo.svghttp://en.wikipedia.org/wiki/Types_of_business_entityhttp://en.wikipedia.org/wiki/Ticker_symbolhttp://en.wikipedia.org/wiki/National_Stock_Exchange_of_Indiahttp://www.nseindia.com/marketinfo/companyinfo/companysearch.jsp?cons=INDIABULLS&section=7http://en.wikipedia.org/wiki/Bombay_Stock_Exchangehttp://www.bseindia.com/bseplus/StockReach/AdvanceStockReach.aspx?scripcode=532544http://en.wikipedia.org/wiki/Financial_Serviceshttp://en.wikipedia.org/wiki/Electrical_power_industryhttp://en.wikipedia.org/wiki/Gurgaonhttp://en.wikipedia.org/wiki/Sameer_Gehlauthttp://en.wikipedia.org/wiki/Security_(finance)http://en.wikipedia.org/wiki/Consumer_Financehttp://en.wikipedia.org/wiki/Mortgageshttp://www.indiabulls.com/


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HISTOR/

Indiabulls )inancial 3ervices 8imited was incorporated on Canuary 1>, !>>> as '2srbis Info ech 9rivate 8imited at New %elhi under the "ompanies *ct, 15&( with

7egistration No. && 1>#16#. he name of "ompany was changed to. Indiabulls

)inancial 3ervices 9rivate 8imited on 'arch 1(, !>>1 due to change in the main

ob+ects of the "ompany from Info ech business to Investment M )inancial 3ervices

business. It became a 9ublic 8imited "ompany on )ebruary !F, !>>$ and the name of

"ompany was changed to '2s. Indiabulls )inancial 3ervices 8imited. *nd now this

company has achieved milestone by voted as he Soungest "ompany of the year in&>>.

he group started its business as a stock brokerage firm and pioneered online

brokerage business in India before diversifying into other financial services areas such

as consumer credit A!>>$B and mortgages A!>>&B. he group partnered with )arallon

"apital to purchase landmark 'umbai land assets and is currently building one of the

largest integrated commercial real estate pro+ects in India Avalued at more than !

billionB. he group recently entered the power generation business and aims to have

more than &>>> '/ of power generation under construction before the end of !>>6.

Indiabulls )inancial 3ervices 8td is a public company and listed on the National 3tock

xchange, 0ombay 3tock xchange, 8uxembourg 3tock xchange and 8ondon 3tock

xchange. he market capitalization of Indiabulls is approx :3 6>> million, and the

consolidated net worth of the company is approx :3 $>> million. Indiabulls and its

group companies have attracted :3 #>> million of equity capital in )oreign %irect

Investment A)%IB since 'arch !>>>.

Indiabulls ranks at 6!nd position in the list of most valuable companies in India.

Indiabulls is promoted by three engineers from the Indian Institute of echnology

AII B %elhi. )oreign Institutional Investors A)IIsB and foreign funds hold over (>

percent shareholding of Indiabulls. 3ome of the large shareholders of Indiabulls are

the largest financial institutions of the world such as )idelity )unds, "apital

International, =oldman 3achs, 'errill 8ynch, 8loyd =eorge and )arallon "apital.

here are approximately over $>,>>> shareholders.

!1


22/74

A%OUT FOUNDERS:

he fast paced growth, diversification and consolidation of the =roup has been

possible due to the vision and leadership of the co founders of Indiabulls.

Samee! 0e laut is the "hairman, " and /hole ime %irector of Indiabulls.

3ameer is an engineer from IIT* Del i 2+,,?4 and has worked internationally with

Halli6u!ton in its international services business in 155&. @e has utilized his

experience with the international best practices and professional work culture at

@alliburton to lead Indiabulls successfully.

Ra@i8 Rattan is the 9resident, ") and /hole ime %irector of Indiabulls. 7a+iv is

an engineer from IIT* Del i 2+,,;4 and has rich experience in the oil industry, having

worked extensively across the globe in highly responsible assignments with

Sc lum6e!ge! . 7a+iv has managed remote exploration pro+ects providing evaluation

services for different clients in India as well as abroad.

Sau!a6 Mittal is a %irector at Indiabulls. %eclared the best graduating student in

IIT* Del i in 2+,,?4 , 3aurabh was also one of the engineers selected by

Sc lum6e!ge! to work for its international services business in 155& and gainedexperience of working in various global locations. @e graduated as a 0aker 3cholar

with an '0* from the Ha!8a!( %usiness Sc ool . @e has also developed in depth

understanding of international financial markets.

%oa!( Of Di!ecto!s

N*' % 3I=N* I N'r.3ameer =ehlaut "hairman M /hole time %irector 'r.3hamsher 3ingh %irector 'r.*ishwarya Eatoch %irector 'r.Eartar 3ingh =ulia %irector 'r.=agan 0anga %irector 'r.3aurabh E 'ittal %irector 'r.Earan 3ingh %irector 'r.7a+iv 7attan /hole ime %irector

!!


23/74

INDIA%U""S SECURTIES "TD>> million for Indiabulls subsidiaries iz.

Indiabulls "redit 3ervices 8td. and Indiabulls @ousing )inance 8td.

3teel ycoon 'r. 8N 'ittal promoted 8N' India Internet venture 8td.

acquired 6.!T stake in Indiabulls "redit 3ervices 8td.

!6


29/74

!5

7 -&

Indiabulls entered in a &>2&> +oint venture with %8), Eenneth 0uilders M

%evelopers AE0%B. E0% has acquired #&.6 acres A1$&,>>> m!B of land from

%elhi %evelopment *uthority through a competitive bidding process for 7s $&>

crore to develop residential apartments.

Indiabulls )inancial 3ervices 8td. is included in the prestigious 'organ 3tanley

"apital International Index A'3"IB.

)arallon "apital has agreed to invest 7s. (,$$> million in Indiabulls )inancial

3ervices 8td. Indiabulls ventured into commodity brokerage business.

Indiabulls has received an Oin principle approvalP from =overnment of India for

development of multi product 3 R in the state of 'aharashtra.

%ev 9roperty %evelopment plc. has subscribed to new shares and has also

acquired a minority shareholding from the "ompany.

Indiabulls )inancial 3ervices 8td. 0oard resolves to *malgamate Indiabulls

"redit 3ervices 8imited and demerge Indiabulls 3ecurities 8imited.


30/74

Sales Tu!n o8e! an( P!ofit an( Ea!ning 'e! s a!e Of In(ia%ulls

'ar H>6 'arD>5 'arD1> 'ar H11 'ar H1!

Sales Tu!no8e! +- < ; -+ 1.>$ $5&.(5 $&6.#1 F56.#6

O'e!ating P!ofit + ;


31/74

Sales Tu!no8e! Ta6le

Sales Tu!no8e! C a!t

#1


32/74

O'e!ating P!ofit Ta6le

O'e!ating P!ofit Ta6le C a!t

#!


33/74

0!oss P!ofit Ta6le C a!t

0!oss P!ofit C a!t

##


34/74

Net P!ofit Ta6le

Net P!ofit C a!t

#$


35/74

Ea!nings Pe! S a!e Ta6le

Ea!nings Pe! S a!e C a!t

#&


36/74

S$OT ANA"/SIS

St!engt s

ery 3trong 0rand Image.

8ow "harges with respect of its 3ervices.

)ree annual maintenance of %emat account.

)acility to trade in office.ery =ood "ustomer "are :nit.

$ea9nesses

/eak *dvertisement 9olicies.

rading on 03 stocks is not available

"ommodity trading is not available in 0ranch

#(


37/74

O''o!tunities

8arge :ntapped 'arket.

pportunity to educate investors about their products M inspire them to invest

more M encourage others.

=ood pportunity to "ash its 0rand Image and 9eople rust.

T !eats

9resence of very strong competitors 8ike, Earvy, *ngel 0roking, 3hare khan,

7eligare etc.

*ggressive marketing by competitors.

8ow brokerage offerings by competitors .

#F


38/74

COMPARATI#E ANA"/SIS OF #ARIOUS STOC. %RO.IN0

COMPANIES IN DE"HI ON THE %ASIS OF ACTI#ATION

CHAR0ES* %RO.ERA0E* SER#ICES

Angel %!o9ing

#6

"riteria *ngel stock broking

%emat a2c opening charges F&>

0rokerage intra day, delivery & paise,&> paise

*'"A*nnual 'aintenance "hargesB 7s.#>>

rading funding intra day, delivery (times,$ timesAminimum stock 7s &>>>>B

%ebit period U! %ays

'ode of trading 0oth online and offline

'argin money &>>>

3oftware installation charges No extra charges


39/74

In(iaInfoline

#5

"riteria India infoline

%emat a2c opening charges &&>

0rokerage intra day, delivery & paise,&> paise

*'"A*nnual maintaince chargesB NI8

rading funding,intraday,%elivery 1> times, $times

%ebit period U!


'argin 'oney !>>>

3oftware Installation charges No extra charges


40/74

Religa!e Secu!ities

"riteria 7eligare 3ecurities

%emat a2c opening charges &&>

0rokerage intra day, delivery $ paise,$> paise

*'"A*nnual maintaince chargesB !&>

rading funding,intraday,%elivery(times,$ timesAminimum stock 7s&>,>>>B

%ebit period U!


'argin 'oney No limit

3oftware Installation charges No xtra charges

$>


41/74

ICICI Di!ect

"riteria ICICI Di!ect

%emat a2c opening charges 7s.5F&

0rokerage intra day, delivery &>9aise,F&9aise

*'"A*nnual maintaince chargesB 7s.&>>

rading funding,intraday,%elivery(times,$ timesAminimum stock 7s&>,>>>B

%ebit period U!


'argin 'oney No limit

3oftware Installation charges No xtra charges

$1


42/74

CHAPTER I#

DATA ANA"/SIS AND INTRPRETATION

I uestions !ega!(ing '!o6lems in t!a(ing:&

;.1B %o you invest in share marketV

aB Ses

bB No

Ta6le No< + S o ing Pu6licGs Inte!est to a!(s In8estment in

S a!e Ma!9et

Particulars Yes NONo. ofrespondents 35 65% ofrespondents 35.00 65.00

Anal)sis: *s per the table in %elhi city people invest in 3hare market is

moderate.

$!


43/74

C a!t No


44/74

;.!B 9lease tick the following-

a.B ype of trading you generally do intraday 2 delivery 2 both

Ta6le No< 7


45/74

C a!t No< 7


46/74

b.B ime period of investment less 1 month 2 1 ( months 2more than (

months.

Ta6le No< 7


47/74

C a!t No< 7


48/74

;.#B In your opinion what is biggest problem in trading-

a.B 8ack of knowledge or experience

b.B :nsatisfactory services of broking firms

c.B 'arket uncertainty

d.B "harges by broking firm

Ta6le No< S o ing P!o6lems in T!a(ing

Particulars a.( ac) of)no*led+eore,perience

-.(nsatisfactoryservices of-ro)in+ fir&s

c.('ar)etuncertainty

d.(/har+es -y-ro)in+fir&

No. ofrespondents 50 !" 10 1$% ofrespondents #$.1$ !$.36 ".#3 16.0#

Anal)sis: *s per the table the biggest problem is only lack of knowledge

or experience is maximum.

$6


49/74

C a!t No< S o ing P!o6lems in T!a(ing

0

10

20

30

40

50

a. "a & of &no'led!e or

e(perien e

). *nsatisfa toryse rvi es of

)ro&in! fir#s

. $ar&et+n ertainty

d. ,har!es )y)ro&in! fir#

No. of respondents % of respondents

Interpretation- 'ost of the people facing biggest problem in trading,

8ack of knowledge and believe that unsatisfactory services by their

broking firms create problem in trading while 1( T people considercharges of broking firm as a problem in trading.

$5


50/74

;.$B /hat is your opinion about the problem of market uncertainty in

tradingV

a.B ItHs a big challenge

b.B ItHs manageable

c.B ItHs an opportunity

Ta6le No< ; S o ing Ma!9et Unce!taint) in T!a(ing

Particularsa.(It s a -i+challen+e

-.(It s&ana+ea-le

c.(It s anopportunity

No. ofrespondents #0 1 13% ofrespondents 56.3# !5.35 1 .31

Anal)sis: *s per the table it clearly shows that the uncertainty in tradingis a big challenge.

&>


51/74

C a!t No< ; S o ing Ma!9et Unce!taint) in T!a(ing

0

10

20

30

40

50

60

a. It-s a )i!hallen!e

). It-s#ana!ea)le

. It-s anopport+nity


Interpretation- 'a+ority of people consider market uncertainty as a big

problem, around 16 T people consider it as an opportunity and rest says

it is manageable.

&1


52/74

;.&B %oes unsatisfactory services provided by the broking firm create

problem in tradingV

a.B Ses

b.B * little

c.B No

Ta6le No< ? S o ing Unsatisfacto!) Se!8ices '!o8i(e( 6) t e

6!o9ing fi!m

Particulars Yes little NoNo. ofrespondents 3$ 1# 1$% ofrespondents 5#.#1 !0.5" !5.00

Anal)sis: *s per the table it indicates that there is unsatisfactory services

is more by the broking firm.

&!


53/74

C a!t No< ? S o ing Unsatisfacto!) Se!8ices '!o8i(e( 6) t e

6!o9ing fi!m

0

10

20

30

40

5060

Yes little No


Interpretation - &$.$1T consider the :nsatisfactory services provided by

the broking firm create problem in trading, !>.&T people consider it a

little and !&T were not agree to that.


54/74

;.(B /hich charge do you consider charged by the broking firms is a

problem in tradingV

a.B 0roking charge

b.B :ndisclosed hidden charge

c.B *nnual maintenance charge

Ta6le No< - S o ing C a!ges of t e %!o9ing Fi!m

Particulars a.( 2ro)in+char+e

-.( ndisclosedhidden

char+ec.( nnual

&aintenance

char+eNo. ofrespondents 13 3 !$% ofrespondents 16.6$ # .$! 3#.6!

Anal)sis: *s per the table undisclosed hidden charges by the broking

firm is high,

&$


55/74

C a!t No< - S o ing C a!ges of t e %!o9ing Fi!m

0

10

20

30

40

50

a. /ro&in! har!e ). *ndislosed hiddenhar!e . nn+al#aintenan e har!e


Interpretation- 'ost people considered undisclosed hidden charges and

annual maintenance charge as their problem in trading.

&&


56/74

II UESTIONS RE0ARDIN0 PERCEPTION OF TRADERS

RE0ARDIN0 INDIA%U""S:&

;.1B Name of the broking firm with which you are making your

investmentV

a.B Indiabulls

bB 3hare khan

cB *ngel 0roking

dB 7eligare

eB EarvyfB thers

Ta6le No< + S o ing In8estment ma(e 6) 'u6lic in %!o9ing Fi!m

ParticularsIndia-ulls hare

)han

n+el2ro)in+

4eli+are arvy

Others

No. ofrespondents !" 11 6 !0 #0 30% of

respondents !1.3! .0" #.#1 1#.$1 !".#1 !!.06

Anal)sis: *s per the table the public response towards karvy is high.

&(


57/74

C a!t No< + S o ing In8estment ma(e 6) 'u6lic in %!o9ing Fi!m

05

101520253035

40

India )+lls hare&han

n!el/ro&in!

eli!are arvy others


Interpretation- 'arket share of IN%I*0:883 is around !1.#! T in

%elhi.

;.!B *re you satisfied in trading with your broking firmV

&F


58/74

a.B 3atisfied

b.B Neither satisfied nor dissatisfied

c.B %issatisfied

Ta6le No< 7 S o ing Satisfaction in T!a(ing it %!o9ing Fi!m

Particularsa.( atisfied

-.(Neithersatisfiednordissatisfied

c.(Dissatisfied

No. ofrespondents !5 !0 1#% ofrespondents #!.3$ 33."0 !3.$3

Anal)sis: *s per the table the public response towards broking firm

services is average.

&6


59/74

C a!t No< 7 S o ing Satisfaction in T!a(ing it %!o9ing Fi!m

05

10152025303540

45

a. atisfie d ). Ne ithe r satisfie dnor dissatisfied

. Dissatisfied


Interpretation- 'ost of the people are satisfied with their broking firm.

&5


60/74

;.#B *re you aware of products and services offered by IndiabullsV

a.B Ses

b.B No

Ta6le No< S o ing A a!eness of P!o(uct an( Se!8ices offe!e( 6)

In(ia6ulls

Particulars Yes NONo. ofrespondents 3! 36% of

respondents #$.06 5!."#

Anal)sis: *s per the table the awareness of product and services lesser

provided by Indiabulls.

(>


61/74

C a!t No< S o ing A a!eness of P!o(uct an( Se!8ices offe!e( 6)

In(ia6ulls

0

10

20

30

40

50

60

Yes NO


Interpretation- $F.>( T of people are aware of products and services

offered by Indiabulls.

(1


62/74

;.$B *re you satisfied with themV

a.B 3atisfied


c.B %issatisfied

Ta6le No< ; S o ing Satisfaction of Cutome!s it In(ia6ulls



c.(Dissatisfied

No. of

respondents 1" 5% ofrespondents 5".3 !5.00 15.63

Anal)sis: *s per the table it indicates that Indiabulls having good namein the market by &5.#6T.

(!


63/74

C a!t No< ; S o ing Satisfaction of Cutome!s it In(ia6ulls

0

10

20

30

40

50

60

a. atisfie d ). Ne ithe r satisfie d

nor dissatisfied

. Dissatisfied


Interpretation- 'a+ority of people are satisfied with them.

(#


64/74

;.&B *re you satisfied with the charges charged by Indiabulls for opening

% 'at accountV

a.B 3atisfied


c.B %issatisfied

Ta6le No< ? S o ing Satisfaction of O'ening D&mat A3c itIn(ia6ulls



c.(Dissatisfied

No. ofrespondents 1 " 5% of respondents 56.!5 ! .13 15.63

Anal)sis: *s per the table it clearly denotes that cutomers satisfaction

towards Indiabulls demat a2c is good and it is !6T more than unsatisfied

customers.

($


65/74

C a!t No< ? S o ing Satisfaction of O'ening D&mat A3c it

In(ia6ulls

0

10

20

30

40

5060

a. atisfied ). Neither satisfied nor dissatisfied

.Dissatisfied

No. of respondents % of respondents3 D ,ol+#n 5

Interpretation- 'ost of people are satisfied with the charges charged by

Indiabulls for opening %emat account.

(&


66/74

;.(B /hat is your perception regarding IndiabullsV

a.B =ood

b.B average

c.B 0ad

Ta6le No< - S o ing Pe!ce'tion !ega!(ing In(ia6ulls

Particulars ood v+. 2adNo. ofrespondents 3# !! 1!% of

respondents 50.00 3!.35 1$.65

Anal)sis: *s per the table it indicates that the perception towards

Indiabulls is good by &>T.

((


67/74

C a!t No< - S o ing Pe!ce'tion !ega!(ing In(ia6ulls

0

10

20

30

40

50

ood v!. /ad


Interpretation- xcept 1! people A1F.(& TB perceive positive perception

about IN%I*0:883.

(F


68/74

;.FB 9lease specify reasonsV

a.B 3ervices good 2average 2 bad

b.B 0rokerage good 2average 2 bad

c.B 7elationship managerHs support good 2average 2 bad

d.B ransparency good 2average 2 bad

Ta6le No< S o ing Custome! Su''o!t 6) In(ia6ulls

3ervices 0rokerage 7elationshipmanagerDs

support

ransparency

9articulars =ood *vg. 0ad =ood *vg. 0ad =ood *vg. 0ad =ood *vg. 0ad No. of

respondent

#! !1 1& 1$ #F 1F !# !F 16 #5 1$ 1>

T of

respondent

$F.>( #>.66 !!.>( !>.&5 &$.$1 !&.>> ##.6! #5.F1 !(.$F &F.#& !>.&5 1$.F1

Anal)sis: *s per the table it indicates that Indiabulls towards

transparency they are very successful in market by &F.#T.

C a!t No< S o ing Custome! Su''o!t 6) In(ia6ulls

(6


69/74

0

10

20

30

40

50

60

ood v!. /ad ood v!. /ad ood v!. /ad ood v!. /ad


Interpretation- In case of transparency and services Indiabulls is

considered good and average in case of brokerage and relationship

managerHs support.

(5

a.B3ervice b.B0rokerage c.B7elationship

managerHs support

ransparency


70/74

CONC"USION

'ost of the traders consider unsatisfactory services of broking firm as biggest

problem in trading.

'ost of traders perceive Indiabulls as a good broking firm.

In case of transparency and services Indiabulls is considered good and average

in case, of brokerage and relationship managerHs support.

9eople awareness about Indiabulls product are recognized by the cutomers

and they are satisfied regarding services offered by them

'arket share of Indiabulls in %elhi city is about #&T

F>


71/74

SU00ESTIONS

0roking charges should be revised to make them more competitive.

'ore relationship managers should be appointed to increase market share.

7elationship managerHs support to the clients should be improved.

)acility to trade on commodity and 03 should be added.

Indiabulls should conduct some kind of mock "lasses for new Investors who

even donDt know about share market.

India0ulls rganize training 9rogram for their existing clients once or twice in

a year.

F1


72/74

%I%"IO0RAPH/

www.Indiabulls.com

www.Investopedia.com

www.powerindiabulls.com

www.bseindia.com

www.nseindia.com

www.moneycontrol.com

www.equitymarket.com

www.demat.com

ANNE URE

F!


73/74

uestionnai!e:

;.1B %o you invest in share 'arketVaB Ses bB No

;.!B 9lease tick the following-

a.B ype of trading you generally do Intraday 2 %elivery 20oth

b.B*mount of investment 8ess than !> k 2 !>k l lacs 2more than 1 lacs

c.B ime period of investment 8ess than 1 month21 ( month 2more than (

month

;.#B In your opinion what is biggest problem in trading-

a.B 8ack of knowledge or experience b.B:nsatisfactory services of

broking firms

c.B'arket uncertainty d.B "harges by broking firm

;$B /hat is your opinion Habout the problem of market uncertainty in tradingV

a.B ItHs a big challenge b.B ItHs manageable c.B ItHs an opportunity

;.&B %oes unsatisfactory services provided by the braking firm create problem in

tradingV

a.B Ses b.B 9artially c.B No

;.(B /hich charge do you consider charged by the companies is a problem in

tradingV

a.B0roking charge b.B :ndisclosed hidden charge c.B*nnualmaintenance charge

;.FB Name of the company with which you are making your investmentV

F#


74/74

a.B Indiabulls b.B 7eliance money c.B 3hare khan d.B ther

;.6B *re you satisfied in trading with your broking firmVa.B 3atisfied b.BNeither satisfied nor dissatisfied cB %issatisfied

;.5B *re you aware of products and services offered by IndiabullsVa.B Ses b.B No

;.1>B *re you satisfied with the charges charged by Indiabulls for opening % 'at

account Awith annual maintenance chargeBVa.B 3atisfied b.B Neither satisfied nor dissatisfied c.B %issatisfied

;.11B /hat is Sour perception regarding IndiabullsVa.B =ood b.B *verage cB 0ad

;.1!B 9lease specify reasonsVa.B 3ervices good2average 2 bad

b.B 0rokerage good 2 average 2 bad

c.B 7elationship managerHs support good 2 average 2 bad

d.B ransparency good 2 average 2 bad

derivatives mba project

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