SUBMITTED BY UNDER THE GUIDANCE OFSALEEM BAIG MRS. RIZWANA ATIQUEB.B.A 3rd year INTEGRAL UNIVERSITY

LUCKNOW

SUMMER TRAINING PROJECT

REPORT ON

(Observation & Learning Share Trading at(IIFL)

EXECUTIVE SUMMARY

Indian Capital Market has been linked to the International Financial Market and the Standard has been increased in terms of efficiency and transparency through Dematerialization of the Indian Capital Market in terms of handling and dealing in securities in paper mode , the main objective of this study is to analyze trends in growth of dematerialization process was not keeping pace with the Indian Capital Market due to un popularity of Demat, lack of information , and short direction after the inception of the scheme or the earliest time taken to evaluate its popularity. My project is base on study about dematerialization in the Indian Capital Market .The project covers issues related to depository and India info line as depository .Project start with objective , Methodology ,and limitation of project than it highlight company profile with product details, than it explains capital market and depository part of this capital market . This project cover trading in equity of capital market, settlement of trade in depository, comparative analysis of structure and services offers in the same industry , analysis of structure and services offers in the same industry, analysis of dematerialization , issues related to demat e.g. opening account , nomination dematerialization ,transmission ,freezing defreezing.

COMPANY PROFILE

IIFL is one of the leading brokerage firms in the country. It is the broking arm of the Mumbai-based IIFL Group, which has over eight decades of experience in the stock broking business. IIFLoffers its customers a wide range of equity related services including trade execution on BSE, NSE, Derivatives, depository services, online trading, investment advice etc.

On April 17, 2002 IIFL launched speed trade, a net-based executable application that emulated the broker terminals along with host of other information relevant to the day traders. This was for the first time that a net-based trading station of this caliber was offered to the traders. In the last six months

BRIEF HISTORY OF IIFL

IIFL (India Infoline Finance Ltd.) was founded in 1995 by Mr. Nirmal

Jain (Chairman and Managing Director) as an independent business research and

information provider. It gradually evolved into a financial services solution provider.

IIFL has a network of 3000 business locations spread over more than 500 cities and

towns across India.

Vision

To be recognized nationally and internationally as a specialized construction organization comparable with the best in the field covering the entire spectrum of construction activities and services in the infrastructure sector.

Mission

i) To effectively position the Company so as to meet the construction needs of infrastructure development of the changing economic scene in India and abroad.ii) To earn global recognition by providing high quality products and services in time and in conformity with the best engineering practices.

CORPORATE STRATEGY OF IIFL

The corporate strategy has been to let customers make informed

decisions and to simplify the process of investing in stocks. To know the

brokerage system of the share market. to know the various exchanges of

share markets all over the world. Provide best product and services to

the customer. To know the rules and regulation of SEBI.

BRIEF PROFILE OF THE ORGANISATION

Name of the organization- India Infoline

Address of Office - 3rd floor platinum mall, ghatkoper east , mumbai, india

Phone/Mobile – 09987635072

year of registration – 1995

Branch Manager – Mr. Rushdi Mukri

Relationship Manager – Mr. Aas Mohd Baig

Assistant Relationship Manager – Mrs. Anjali Tripathi

Branch co-ordinator – Prashant Patangrao

Reasons to choose IIFL

Experience - IIFL has more than eight decades of trust and credibility in the Indian stock market.

Technology- With our online trading account you can buy and sell shares in an instant from any PC with an Internet connection.

Accessibility- IIFL provides ADVICE, EDUCATION, TOOLS AND EXECUTION services for investors.

Knowledge - In a business where the right information at the right time can translate into direct profits, you get access to a wide range of information on our content-rich portal, sharekhan.com. You will also get a useful set of knowledge-based tools that will empower you to take informed decisions.

Convenience -You can call our Dial-N-Trade number to get investment advice and execute your transactions. We have a dedicated call-centre to provide this service via a toll free number from anywhere in India.

Customer Service - Our customer service team will assist you for any help that you need relating to transactions, billing, Demat and other queries. Our customer service can be contracted via a toll-free number, email or live chat on IIFL.com.

Investment Advice - IIFL has dedicated research teams for fundamental and technical research. Our analyst constantly track the pulse of the market and provide timely investment advice to you in the form of daily research emails, online chat, printed reports and SMS on your phone

BENEFITS

•Secure Order by Voice Tool Dial-n-Trade.

•Automated Portfolio to keep track of the value of your actual purchases.

•24x7 Voice Tool access to your trading account.

•Personalized Price and Account Alerts delivered instantly to your cell phone &email address.

•Special Personal Inbox for order and trade confirmations.

•On-line customer service via web chat.

•Anytime Ordering.

PRODUCTS OF IIFL

1- Equity Trading Platform (Online/Offline).

2- Commodities Trading Platform (Online/Offline).

3- Portfolio Management Service. 4- Mutual Fund Advisory and Distribution. 5- Insurance Distribution. 6- Depository Services. 7- Research Report.

MUTUAL FUND FLOW CHART

Company

Companies get themselves listed on popular stock exchanges like BSE and NSE.

Stock Exchange

Individual Investors

SECONDARY MARKET

Buyer BrokerStock Exchange Broker Seller

He pays the money to his broker

His broker pays it to the exchange

The exchange pays it to the seller’s broker

Seller’s broker finally pays the money to the seller

Similar process happens for the transfer of shares from the seller’s end.

Dynamics of the Share Market

Weekly Activities

Week 1

Overview of IIFLVisit to local area and observe the views regarding the IIFL.

Week 2& Week 3

Visit the office of IIFL and learn about the share trading of Company.

Week 4

Visit the office of IIFL and learn about the working of Company.Meet with Senior officers and know more about working of IIFL and get training Certificate after personal interview.

Data analysis & interpretation

OPTIONS NO OF RESPONDENTS

Equity 59

Mutual fund 25

Fixed deposits 9

insurance 7

INTERPRATATIONS:This pie chart shows that maximum saving by respondent in Equity with 59 persons and minimum by 7 in insurance.

Q1. Where do you invest your savings?

Q2. Your investment decisions are influenced byOptions No of respondents

Oneself 24

Broker 36

Eco policies 20

Market research 12

Friends/relatives 8

Any other

24

36

20

8

0

5

10

15

20

25

30

35

40

Pe

rce

nta

ge

Investment Decisions

Oneself

Brokers

Eco. Policies

Market Ramous

Friends/Relatives

INTERPRATATIONS:How do investors take their investment decisions is presented in this bar graph. In this graph it is evident that mostly investment decision are taken on the insistence of the brokers firms and companies and that percentage is 36%.

Q3. Are you satisfied with your current investment?OPTIONS NO OF RESPONENTS

YES 42

NO 58

INTERPRATATIONS:That chat is show the satisfaction level of current investment( in share) and long term investment(mutual fund) than here shows that the satisfaction level in current investment (shares) is 58% and satisfaction in long term investment (mutual fund) is 42%.

Q4. What are the factors which you considered before investing in particular company?

OPTIONS NO OF RESPONDENTS

Financial potions 24

Current market position 36

Goodwill 20

Future prospects 12

Any other

24

36

20

12

8

0

5

10

15

20

25

30

35

40

Pe

rce

nta

ge

factors

Financial Positions

Current market Positions

Goodwill

Future Prospects

Any other

Q5. Which sectors give more return?OPTIONS NO OF RESPONDENTS

Share market 77

Mutual fund 23

77%

23%

Sharemarket Mutual funds

INTERPRATATIONS:This pie chart shows that share market give return 77% as compared to mutual fund at 23% return. It signifies mostly more people go for share market as compared to mutual funds.

OBSERVATIONS & FINDINGS

•most people go for at 1st EQUITY investment then for MUTUAL FUND, FIXED DEPOSITS AND INSURANCE. Because equity gives good return in short time as well as long term as compared to mutual fund.•77% as compared to mutual fund at 23% return. It signifies mostly more people go for share market as compared to mutual funds. •mostly investment decision are taken on the insistence of the brokers firms and companies and that percentage is 36%. In this area Sharekhan has its own research report and that strike rate has 80%. This is an advantage to the customers of IIFL.

OBJECTIVES OF THE STUDY

•To know the work culture and methodology of the share market

•To know the rules and regulation of SEBI.

•To know the rules and regulation of AMC (Assets Management Company)

•To know the brokerage system of the share market

•To know the difference between share market and mutual funds.

•To know the various competitors in the mutual funds market.

•To know the various exchanges of share markets all over the world.

•To know the timing of the share market.

•To know how the value of shares and mutual funds is calculated.

•To know the various factors on which prices of shares and mutual funds

fluctuates.

•To know the benefits of investing in share market and mutual funds.

•To know about the services of the share market and mutual funds.

CONCLUSIONThe strategy adopted by me in completion of this project help me a lot

till now in making comparison between share market and mutual funds. From the analysis we can say that if there is more risk there is more return and we can say that share market is totally dependent on the risk taken by the investors in investing in shares. And in mutual funds there is less risk as the money of investors invested in different sectors so it can divide the risk in different portfolio adopted by mutual funds companies.

At last I can say that money invested in this rise and fall market it is better to invest in mutual funds for those investors who are risk adverse and for those who are risk taker it is better for them to invest in share market.

SUGGESTIONS

After interpretation and analysis, I am giving certain suggestions to the company which I hope may be helpful for the company.•The company should utilize its stock more efficiently.•The company should pay attention towards the proper and efficient utilization of working capital.•The company can reduce the time for purchase order. The buffer should be maintained incase of emergency. Insurance should be covered especially fire in case of transit journey also.