srishti report 178

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LiveTips Market Research Pvt Ltd.

Alliance Business Academy 1

Overview of Indian Financial System

1.1 Introduction

The Finance is the science of money management. We can say that finance is something

related to management of money and other assets. Finance represents the resources by way

funds needed for a particular activity. Finance is also referred to as "Funds" or "Capital",

when referring to the financial needs of a corporate body. Now you can finance anything

that you want for example you can have home loans, business loans, education economic

development of a nation is reflected by the progress of the various economic units, broadlyclassified into corporate sector, government and household sector. While performing their

activities these units will be placed in a surplus/deficit/balanced budgetary situations.

There are areas or people with surplus funds and there are those with a deficit. A financial

system or financial sector functions as an intermediary and facilitates the flow of funds

from the areas of surplus to the areas of deficit. A Financial System is a composition of

various institutions, markets, regulations and laws, practices, money manager, analysts,

transactions and claims and liabilities.

The word "system", in the term "financial system", implies a set of complex and closely

connected or interlined institutions, agents, practices, markets, transactions, claims, and

liabilities in the economy. The financial system is concerned about money, credit and

finance-the three terms are intimately related yet are somewhat different from each other.

Indian financial system consists of financial market, financial instruments and financial

intermediation.

These are briefly discussed below;

1.2 Financial system overview

A Financial Market can be defined as the market in which financial assets are created or

transferred. As against a real transaction that involves exchange of money for real goods or

services, a financial transaction involves creation or transfer of a financial asset. Financial


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Assets or Financial Instruments represents a claim to the payment of a sum of money

sometime in the future and /or periodic payment in the form of interest or dividend.

Money Market- The money market ifs a wholesale debt market for low-risk, highly-liquid,

short-term instrument. Funds are available in this market for periods ranging from a single

day up to a year. This market is dominated mostly by government, banks and financial

institutions.

Capital Market- The capital market is designed to finance the long-term investments. The

transactions taking place in this market will be for periods over a year.

Forex Market - The Forex market deals with the multicurrency requirements, which are

met by the exchange of currencies. Depending on the exchange rate that is applicable, the

transfer of funds takes place in this market. This is one of the most developed and

integrated market across the globe.

Credit Market- Credit market is a place where banks, FIs and NBFCs purvey short,

medium and long-term loans to corporate and individuals.

Financial Intermediaries- Having designed the instrument, the issuer should then ensure

that these financial assets reach the ultimate investor in order to garner the requisite

amount. When the borrower of funds approaches the financial market to raise funds, mere

issue of securities will not suffice. Adequate information of the issue, issuer and the

security should be passed on to take place. There should be a proper channel within the

financial system to ensure such transfer. To serve this purpose, financial

intermediariescame into existence. Financial intermediation in the organized sector is

conducted by a wide range of institutions functioning under the overall surveillance of the

Reserve Bank of India. In the initial stages, the role of the intermediary was mostly related

to ensure transfer of funds from the lender to the borrower. This service was offered by

banks, FIs, brokers, and dealers. However, as the financial system widened along with the

developments taking place in the financial markets, the scope of its operations also

widened. Some of the important intermediaries operating in the financial markets include;


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investment bankers, underwriters, stock exchanges, registrars, depositories, custodians,

portfolio managers, mutual funds, financial advertisers financial consultants, primary

dealers, satellite dealers, self regulatory organizations, etc. Though the markets are

different, there may be a few intermediaries offering their services in more than one market

e.g. underwriter. However, the services offered by them vary from one market to another.

The Indian Capital Market

Indian Capital Market

Market Instruments Intermediaries

Prim ary Secondary

Equity DebtHybrid

Regulator

BrokersInvestment BankersStock ExchangesUnderwriters

SEBI

Players

Corporate IntermediariesCRA Banks/FI FDI /FIIIndividual

Figure.1

In the broad financial market, people have different instruments available to them in which

they can invest. Investment is referred to as the concept of deferred consumption, whichmight comprise of purchasing an asset, rendering a loan, keeping the saved funds in a bank

account such that it might generate lucrative returns in the future. The options of

investments are huge; all of them having different risk-reward trade off. This concludes

that the investment industry is really broad and that is why understanding the core concepts

of investments and accordingly analyzing them is essential. After thorough understanding


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of the investment industry, can an investor create and manage his own investment portfolio

such that the returns are maximized with the least risk exposure.

1.3 Types of investments:

Cash investments: Cash investments comprise of savings bank accounts, certificates of

deposit (CDs) and treasury bills (TBs). All these types of investments render a low interest

rate and prove to be quite risky during times of inflation.

Debt securities: This type of investment gives returns in the form of fixed periodic

payments and the fixed capital appreciate at maturity. This is safe bait for the investors in

the investment industry and has always proved to be the risk free investment tool. Though,

it is generally low in risks, the returns are also lower than the other peer securities.

Stocks: Investors can also buy stocks (equities) from the secondary markets and be a part

of any business corporates that are listed in the bourses. By this way, one can become the

part of the profits that the company generates. But one should remember that stocks are

generally more volatile and carries more risk than bonds.

Mutual funds: They are usually a collection of stocks and bonds that a fund manager

selects for an investor such that the returns are maximum. The investor does not have to

track the investment, be it a bond, stock- or index-based mutual funds.

Derivatives: Derivatives are financial contracts, whose value is derived from the value of

the underlying assets like equities, commodities and bonds. They can take the form of

futures, options and swaps. Investors choose derivatives as they are used to minimize the

risk of loss that result from variations in the underlying asset values.

Commodities: The items that are traded on the commodities market are agricultural and

industrial commodities and they need to be standardized. Commodities trading have always

been giving high returns and thus they are the riskiest of all investment options. One, who

trades in commodities, requires specialized knowledge and analytical capabilities.

Real estate: Investing in real estate has to be a long term affair. Funds get hooked into the

real estate sector for a considerable time period.


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1.4 The Securities Research within Financial Services Industry

Securities research is a discipline within the financial services industry. Securities researchprofessionals are known most generally as "analysts," "research analysts," or "securities

analysts;" all the foregoing terms are synonymous. Securities analysts are commonly

divided between the two basic kinds of securities: equity analysts (researching stocks and

their issuers) and fixed income analysts (researching bond issuers). However, there are

some analysts who cover all of the securities of a particular issuer, stocks and bonds alike.

Securities research falls into two broad categories: that provided by investment banks and

that provided by independent equity research boutiques. The former group offer research as

part of a broad set of financial services including broking and corporate finance.

Independent equity research has largely sprung into existence as a result of scandals such

as Enron, Lernout & Hauspie and WorldCom where investment banks wrote positive

research despite deteriorating fundamentals or fraudulent management.

Equity research companies have grown in the past years as several trends moved the

financial services sector away from using internal resources. One of the main drivers that

led to an outcrop of equity research providers was the separation of research and

investment banking after conflicts of interest was found. Another main driver is that

trading fees, which in many cases paid for equity research at brokerage firms, were

pressured downward due to the growth of electronic trading.

The security research firms are as old as the share market in India. It was provide its

service to give a high return to their clients. During the initial time the research companies

are only under the some of the brokerage firm or companies they only give a tips and

suggestion to their clients to buy or sell of the security. That period of time they mostly use

a fundamental analysis with some of the basic ratios which provide financial health of the

company. The need of the financial research continues increase with increase in investors

participates and the number of company listed in the exchange, which result to modern

financial research born.


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Today the security market spared so wide and number of companies listed on the various

stock exchanges in India is increased daily, which require so much research to select the

best company. The Technical analysis and Fundamental Analysis are used together to

analysis the companys stock.

The technical Analysis is mostly used to give instant tips for short term investment to the

investor and fundamental analysis are used for the long term investment. The analyst used

various charts and statistical methods and tools to analyze the stock of the various

companies. Many security research firms also comes which are professionally provide the

research on the various companies and the economy of the country. They provide various

financial services for investments.

1.5 The emergence of E-Broking in India

The Indian trader is being fancied by the democratized world of online trading or also

known as e-broking. The regular and attractive advertisements in the print media and

electronic media haveadded to this fancy world.

But as we compare to the Western countries, in India online trading has not still graspedthe market, but has done a very important amount of progress in the past years and the

future of online trading is bright. That is why many new companies are coming into this

form of business structure and the existing companies are changing to this new format

besides offline and other traditional forms of business. With only a mere share of 10%

online trading a combined gross turnover of around Rs. 9000-10,000 crores handled by the

BSE and NSE together there is a much greater scope for online trading.

Earlier the share market was not safe enough to invest but some of the changes in the past

ten years in the Indian share market have created the interest of trading in the shares by the

people. Broadly we can classify three important factors which have contributed to the

development of online trading in India-

Firstly the major step was taken by the National Stock Exchange (NSE) in the year 1994

which allowed the electronic trading and seeing to this various other stock exchanges in

India followed soon. This helped in making the fast .accurate and transparent transactions


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saving a lot of time then the traditional method of trading. The investors were also saved

by the clutches of the fraud brokers at the times when the clients were not aware of the true

prices of the shares.

Secondly, in the year 1996 the dematerialization of the shares came (also known as

DEMAT) which avoided the online presence of shares in an electronic form avoiding them

from theft, pilferage or from other losses like counterfeiting and frauds regarding share

transfer.

The third reason was the rapid growth of computer education and learning of internet by

the people. With the evolving of internet the online trading became a hit and the investors

became confident in investing just with a click of a mouse.

With the happening of such events the ratio of trading has improved a lot. As it takes less

time people praise this technology for trading purposes. Some people who traded rarely

now even trades 2-3 times every day as it provides edge of researching about companies on

the internet. The number of small investors is increasing on the daily basis that trades on

the internet.

If a person invests or trades in equities, derivatives, commodities etc through the use

Internet it is known as online trading enabling the investor to connect electronically to buy

or sell stocks, derivatives etc with the other investors. This can be done with the help of

online service providers like Sharekhan.com, ICICI Direct.com etc. A person can access a

stockbroker's website through a PC connected to Internet and can place his orders. The

benefits are:

1. A person can see the latest market movement through streaming quotes.2. Reduces time lag due to self-execution and instant confirmation.3. Empowers traders to have a complete control over their trading decisions.4. A person can access his accounts and related information on the Website.5. Provides greater convenience of trade as a person can trade from home or other

convenient location.

6. It is cheap in terms of cost associated and offers reduction in overheads


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7. A trader can view the historical charts on his computer.

The Internet revolution has changed the way to communicate and the way to do business intodays society bringing us closer and closer to vital sources of information. It provides us

with means to directly interact with service-oriented computer systems tailored to our

specific needs; therefore, we can serve ourselves better by making our own decisions.

This new access by the online trading customers to low-cost transactions and cutting-edge,

real-time market information that formerly belonged only to brokers has opened up

extraordinary new investment opportunities as well as a crucial need for state-of-the-art

information. Today the investors use the Internet Client-Server technology to buy and sell

the securities at an instant at any point of time. People investing online have reached the

proportions. Online trading allows an investor to buy and sell shares on the exchange

through Internet and helps in the direct control of his investments.

1.6 Brokerage Firms in India

Brokerage firms are the business entities that deal with stock trading. India, with an

increasing capital market and a growing number of investors, has a number of brokeragefirms. In Indian retail brokerage industry, the brokerage firms primarily work as agents for

buying and selling of securities like shares, stocks and other financial instruments and earn

commission for each of the transactions. There are plenty of brokerage firms in India. Let's

have a look at the top 10 brokerage firms in India.

Before talking anything about top brokerage firms in India, let's have a glance at the Indian

retail brokerage market, which is going through a wonderful phase with high growth rate.

The total trading volume of the Indian brokerage companies stood at US$ 1239.1 billion in

the year 2004, which increased to US$ 1492.1 billion in 2005. It is further expected to

reach US$ 6535.7 billion by the year 2015.

Major Players in the Industry:

1. Karvy2. Indiainfoline


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3. ICICI direct4. HDFC security5. Indiabulls6. HSBC Investmart7. ShareKhan8. Motilal Oswal9. Religare10.Geojit11.Kotak Securities12.Angel Trade13.Reliance Money14.IDBI Paisa BuilderDetails about the some of the top brokers in India:

1. Karvy

KARVY is a premier integrated financial services provider, and ranked among the top

five in the country in all its business segments, services over 16 million individual

investors in various capacities, and provides investor services to over 300 corporate,

comprising the who is who of Corporate India. Karvy has a professional management

team and ranks among the best in technology, operations and research of various

industrial segments.

History of Karvy :- The birth of Karvy was on a modest scale in 1981. It began with the

vision and enterprise of a small group of practicing Chartered Accountants who

founded the flagship company, Karvy Consultants Limited. They started with

consulting and financial accounting automation and carved inroads into the field of

registry and share accounting by 1985. Since then, karvy utilized its experience and

superlative expertise to go from strength to strength, to better their services, to


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innovate, diversify and in the process, evolved as one of Indias premier integrated

financial service enterprise.

PRODUCT AND SERVICES OF KARVY GROUP

i. Karvy comtrade.ii. Karvy consultant ltd.

iii. Karvy merchant banking.iv. Karvy global services ltd.

2. ICICI DIRECT

ICICI Web Trade Limited (IWTL) maintains www.icicidirect.com (herein after

referred to as the "Website") whereas IWTL is an affiliate of ICICI Bank Limited and

the Website is owned by ICICI Bank Limited. IWTL has launched and established an

online trading service on the Website.

Type of Account

ICICIDirect offers 3 different online trading platforms to its customers:

1. Share Trading AccountShare Trading Account by ICICIDirect is primarily for buying and selling of stocks in

BSE and NSE.

This account allows Cash Trading, Margin Trading, MarginPLUS Trading, Spot

Trading, Buy Today Sell Tomorrow and Call and Trade on phone. ICICIDirect.com

website is the primary trading platform for this trading account. They also provide

installable application terminal based application for high volume trader.

2. Wise Investment AccountAlong with stock trading and IPO investing in BSE and NSE, Wise Investment account

also provide options to invest in Mutual Funds and Bonds online.


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Online Mutual funds investment allows investor to invest on-line in around 19 Mutual

Fund companies. ICICI Direct offers various options while investing in Mutual Funds

like Purchase Mutual Fund, Redemption and switch between different schemes,

Systematic Investment plans, Systematic withdrawal plan and transferring existing

Mutual Funds in to electronic mode. This account also provides facility to invest in

Government of India Bonds and ICICI Bank Tax Saving Bonds.

ICICIDirect.com website is the primary tool to invest in Mutual Funds, IPOs, Bonds

and stock trading.

3. Active Trader AccountActive Trader account gives more personalized investment options to the investors. It

allows investor to use online and offline stock trading. It also provides with

independent market expertise and support through a dedicated Relationship Manager

from ICICI.

Active Trader also provides commodity trading.

PRODUCTS AND SERVICES OF ICICI DIRECT

i. Investing in Mutual fundsii. Personal Finance

iii. Customer Service Featuresiv. IPOsv. Margin Trading

vi. Margin PLUS Tradingvii. Call Trade

viii.

Trading on NSE/BSEix. Trade in derivatives

3. INDIAINFOLINE SECURITY PRIVATE LTD

India Infoline.com Securities Pvt. Ltd. is a wholly owned subsidiary of India

Infoline.com Ltd and is the stock broking arm of India Infoline.com. The subsidiary


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was formed to comply with regulatory guidelines. www.5paisa.com is a focused

website for online stock market trading. 5paisa.com is a trade name owned by the India

Infoline.com group. IILSPL has applied for trading membership of the BSE under

Securities and Exchange Board of India (Stock Brokers and Sub-Brokers) Rules 1992.

IILSPL is in the business of providing broking services online via the Internet ("E-

broking Services") and has been permitted by the NSE by way of registration

permission no: NSEIL/CMO/INET/1103/2000 dated 03/July/2000, and will be

applying for permission to the BSE, to provide E-broking Services to its clients.

IILSPL is a TRADING MEMBER of the National Stock Exchange of India.

PRODUCT OFFERED BY IILSPL

i. Stock market:-IILSPL deals in stock market by trading in equity andderivatives.

ii. Personal finance:- It Deals In Mutual Fund And Insurance.iii. Online Trading :- It provides services in stock and commodity trading (through

Internet).

4. HDFC SECURITY

HDFC Securities(HDFCsec) is Equity Trading Company of HDFC Bank. HDFC

Securities provide both online trading and trading on phone. The HDFC Securities

trading account has a unique 3-in-1 feature that integrates your HDFC Securities

trading account with your existing HDFC bank savings account and existing Demat

account. Funds / shares are seamlessly moved from the linked Demat/Bank account to

execute the transactions.

HDFCsec provides Cash-n-Carry on both NSE and BSE, Day trading on both NSE and

BSE, Trade on Futures & Options on the NSE and Online IPO Investment.


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Features on HDFC Securities Online trading

1. Seamless Transactions - By integrating your accounts, we ensure minimal waste oftime during movement of your funds and shares.

2. Speed - Orders are placed electronically, so proceeds are available instantly.3. No manipulation - To prevent any mismanagement, we will send you an email

confirmation, the minute your order is executed.

4. Safety and Security - HDFC Securities offer the highest level of security such as128-bit encryption technology.

5. Dedicated and Separate contact numbers - for trading over the phone as well as forcustomer care.

PRODUCT OFFERED BY HDFC SECURITY

i. Online trading for Resident & Non Resident Indians.ii. Cash-n-Carry on both NSE and BSE.

iii. Day trading on both NSE and BSE.iv. Trade on Futures & Options on the NSE.v. Online IPO's.

vi. Telephone-based Broking (Equity & Derivatives)5. INDIABULLS SECURITIES LIMITED

Indiabulls Securities Limited was incorporated as GPF Securities Private Limited on

June 9, 1995. The name of the company was changed to Orbis Securities Private

Limited on December 15, 1995 to change the profile of the company and subsequently

due to the conversion of the company into a public limited company; the name was

further changed to Orbis Securities Limited on January 5, 2004. The name of the

company was again changed to Indiabulls Securities Limited on February 16, 2004 so


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as to capitalize on the brand image of the term Indiabulls in the company name. ISL

is a corporate member of capital market & derivative segment of The National Stock

Exchange of India Ltd. At present, ISL accounts for approximately 3% of the total

daily turnover of the Exchange with 32,359 client relationships and 70 branches spread

across the country as of April 30, 2004.

INDIABULLS CREDIT SERVICES LIMITED:- Indiabulls Credit Services has been

valued at Rs. 263 crore with the Rs. 87.6-crore infusion. Indiabulls Credit Services Ltd,

the recently formed subsidiary of broking firm, Indiabulls Financial Services Ltd.

Faralon Capital, a San Francisco-based private equity fund, and its affiliates have

acquired 33.3 per cent stake for Rs 87.6 crore.

INDIABULLS REAL ESTATE:- Indiabulls through its group companies has entered

Indian Real Estate business in 2005. It is currently evaluating several large-scale

projects worth several hundred million dollars. Indiabulls became the first company to

bring FDI in Indian Real Estate through a JV with Farallon Capital Management, a

respected US based investment firm.

PRODUCT OFFERED BY INDIA BULLS

i. Equity & Debt Stock Brokingii. Insurance

iii. Commodity tradingiv. Depository Servicesv. Derivatives Broking Services

vi. Equity Research Servicesvii. Mutual Fund Distribution

viii.

IPO Distribution6. HSBC InvestDirect

HSBC InvestDirect (India) Limited (HIL) is one of the India's leading financial services

organizations providing varied range of services through its subsidiaries to Individual and

Corporate customers. HIL is listed on the Bombay Stock Exchange Limited (BSE) and

National Stock Exchange Limited (NSE).


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HSBC InvestDirect offers various services that include equity broking, wealth

management, IPO distribution and portfolio management services. HSBC InvestDirect has

around 240 offices in 80 cities around the country.

Trade In: BSE and NSE

Online Stock Trading Platforms:

HSBC InvestDirect offers 3 different online trading platforms to their customers:

1. SmartSTARTSmartStart is a powerful browser based Trading platform for beginners. SmartStart

trading platform allows their investor to flexibility of trading on both the NSE & BSE

via a single screen.

Features:

1. Trade on NSE & BSE2. Simple order entry for Equity & Derivatives3. Fully Customizable display4. User friendly Get Quote screen5. Seamless 3-in-1 proposition6. Live order status7. Track your orders real-time8. Dynamic buying power9. Works behind a Proxy10.Back office access

2. SmartINVESTSmartInvest is a browser-based trading platform for customers who transact

occasionally. It is ideal for investors who believe in the Buy and Hold approach

towards investment in equities. It gives the benefit of real-time streaming data with the

flexibility of trading on any Internet capable system.

Features:

1. Instant access to account with no wait time2. Works behind a Proxy


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3. Live Streaming quotes4. Multiple Watch lists5. NSE & BSE Access6. Single order form for Cash and FnO7. Point and Click order entry8. Hot Key Functions9. Back Office access

3. SmartTRADESmartTrade is an EXE based desktop software designed for active traders who transact

frequently to capture short-term price movements. This platform gives more

personalized investment options to the investors. Following are few popular features

of Smart Trade account.

Features:

1. Fully Customizable display2. Dynamic Charts with Indicators3. EOD Charts4. Real-Time market data5. Advanced Alert capabilities6. Live order status7. Track your orders real-time8. Real time position updates9. Dynamic buying power10.Message window docking

7.

ShareKhan:

Sharekhan is online stock trading company ofSSKI Group, provider of India-based

investment banking and corporate finance service. ShareKhan is one of the largest

stock broking houses in the country. S.S. Kantilal Ishwarlal Securities Limited (SSKI)

has been among Indias leading broking houses for more than a century.
http://www.sski.co.in/http://www.sski.co.in/


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Sharekhan's equity related services include trade execution on BSE, NSE, Derivatives,

commodities, depository services, online trading and investment advice. Trading is

available in BSE and NSE. Along with Sharekhan.com website, ShareKhan has around

510 offices (share shops) in 170 cities around the country.

Share khan has one of the best state of art web portal providing fundamental and

statistical information across equity, mutual funds and IPOs. You can surf across 5,500

companies for in-depth information, details about more than 1,500 mutual fund

schemes and IPO data. You can also access other market related details such as board

meetings, result announcements, FII transactions, buying/selling by mutual funds andmuch more

Type of Account

1. ShareKhan Classic accountAllow investor to buy and sell stocks online along with the following features like

multiple watch lists, Integrated Banking, demat and digital contracts, Real-time portfolio

tracking with price alerts and Instant credit & transfer.

a. Online trading account for investing in Equities and Derivativesb. Free trading through Phone (Dial-n-Trade)

I. Two dedicated numbers for placing your orders with your cellphone orlandline.

II. Automtic funds tranfer with phone banking (for Citibank and HDFCbank customers)

III. Simple and Secure Interactive Voice Response based system forauthentication

IV. get the trusted, professional advice of our telebrokersV. After hours order placement facility between 8.00 am and 9.30 am

c. Integration of: Online trading + Bank + Demat accountd. Instant cash transfer facility against purchase & sale of sharese. IPO investmentsf. Instant order and trade confirmations by e-mailg. Single screen interface for cash and derivatives


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2. ShareKhan SpeedTrade accountThis accounts for active traders who trade frequently during the day's trading session.

Following are few popular features of SpeedTrade account.

a. Single screen interface for cash and derivativesb. Real-time streaming quotes with Instant order Execution & Confirmationc. Hot keys similar to a traditional broker terminald. Alerts and reminderse. Back-up facility to place trades on Direct Phone lines

8. Motilal Oswal Securities

Incorporated in 1987, Motilal Oswal Securities Ltd is a well diversified financial services

firm offering a range of financial products and services such as Wealth Management,

Broking & Distribution, Commodity Broking, Portfolio Management Services,

Institutional Equities, Private Equity, Investment Banking Services and Principal

Strategies.

Company has a diversified client base that includes retail customers (including High Net

worth Individuals), mutual funds, foreign institutional investors, financial institutions and

corporate clients. They are headquartered in Mumbai and as of September 30th, 2009, had

a network spread over 576 cities and towns comprising 1,257 Business Locations operated

by them. As at September 30th, 2009, company had 5,80,667 registered customers.

Type of Account - Most E-Broking

Most E-Broking is complete online stock trading solution for Indian stock market.

Following are the features of Most E-Broking account:

1. Easy single screen trader with instant trade confirmation similar to exchange basedtrading terminals.

2. Access to various online reports like margin report, Demat A/c details, tradesexecuted, turnover report, net position report with mark to market profit/loss and

realized profit.

3. Online transfer funds through HDFC Bank.


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9. Religare:

Religare Enterprises Limited is Ranbaxy Laboratories Limited promoted financial product

and service provider company.

Religare provide its service in three different segments including Retail, Wealth

management and the Institutional spectrum. Company offers wide range of services

including equities, commodities, insurance broking, wealth advisory, portfolio

management services, personal finance services, Investment banking and institutional

broking services. Religare retail network has more than 900 locations in 300 cities and

towns in India.

Religare provides the online gateway to their investors so investor can trade online in

Equities, Commodities, apply for IPOs, invest in Mutual Funds, and buy Insurance.

Religare Securities Limited (RSL) is a subsidiary company of Religare Enterprises Ltd

and involve in equity related services include online trading at BSE and NSE, Derivatives,

commodities, IPO, Mutual fund, Investment banking and institutional broking services.

People who wonder where Religare word came from, it's a Latin word meaning 'to bind

together'.

Type of Account

Religare offers its wide range of financial services though a sophisticated and customized

trading platform - R-ACE (Religare Advanced Client Engine). Below are 3 flavors of R-

ACE accounts available to the investors.

1. R-ACE (Basic)R-ACE (Religare Advanced Client Engine) the basic online trading account provided by

Religare. Investor can trade and access their account information online and over the

phone as well. This account comes with a browser based online trading platform and no

additional software installation needed.

2. R-ACE Lite (Advanced)R-ACE Lite is the advanced trading platform for the investor of Religare. This trading


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account provides the entire feature of R-ACE (Basic) account. In addition it also provides

real-time streaming stock quotes and alerts. This trading platform is also browser based

and no software installation is needed.

3. R-ACE Pro (Professional)As the name indicates this account is for high volume traders. Along with the features

from above 2 accounts, this account also comes with Trading Terminal software which

needs to install on your computer. This terminal directly connects the investor to stock

market and having all industry standard Treading terminal features including technical

charting (intra-day and EOD), multiple watch list, advanced hot-key functions for faster

trading, derivative chains, futures & options calculator etc.

As in basic and advance account, trading is available online through internet and offline

though phone.

10.Geojit PNB Paribas

Incorporated in 1987, Geojit BNP Paribas (Geojit) is one of the major stock brokers based

in India. Geojit is based in Kochi, Kerala and has the strong presence in Gulf.

Geojit BNP Paribas is cash equity and derivatives broker with extensive experience in

Portfolio Management Services and the distribution of financial products: mutual funds

and life insurance.

Geojit provides stock trading at NSE and BSE stock exchanges through a strong network

of around 500 branches and its state of art online trading portal.Geojit BNP Paribas is a stock market listed company and its stock are traded at NSE

(GEOJIT) and BSE (532285).

Over the years the name of the company got changed from Geojit Securities Ltd. to Geojit

Financial Services Ltd. (GFSL) and finally to Geojit BNP Paribas Financial Services LTD

in April 2009.


Online Stock Trading Platforms:


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Geojit BNP Paribas offers an Advanced Online Investment Platform called FLIP

(Financial Investment Platform) that comes with multiple conveniences and flexibilities.

Geojit BNP Paribas offers 3 different online trading platforms to its customers. Investor

can select from any of the three trading platforms that Geojit BNP Paribas offers as per

investors requirement.

1. FLIP LiteFLIP Lite is a browser based version and will help to trade even if someone have a low

bandwidth connection. Its Light and easy to use. FLIP Lite is designed to work on mobile

devices.

2. FLIP Gold PlatformFLIP Gold Platform is a browser based version that can be accessed from around the

world. This Platform is offered absolutely FREE to all online customers. FLIP Gold

Platform is ideal for those who travel often and hence cannot access their own computer

for trading.

Key Features of Gold Platform:

1. Live streaming quotes2. Real-time configurable Market Watch with auto save functionality3. Live top gainers, top losers and most active script4. Tick by Tick Intraday Charting and advanced charting with 60 technical

studies

5. Live exchange-broadcasting messages6. Optimized to work on low bandwidth7. Works behind proxy & firewall8.

Real-time Research & Trade Execution notification via pop-up

9. Platinum user can login to Gold & Lite platforms with the same login id10.Instant trade confirmation & Online fund transfer facility11.After market hours, orders can also be placed in both the Exchanges12.Online investment of Mutual Funds and IPOs

3. FLIP Platinum platformPlatinum platform is a virtual dealer terminal. It is best suited for active traders, who take

advantage of minor movements in the price. This EXE program can be downloaded on the


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clients computer. This platform is FREE if brokerage criteria is met else clients can opt

for the refundable fee option.

Key Features of Platinum Platform:

1. All the features of Gold are available in Platinum2. Professional, Classic, Customized Market Watches3. Fast trade execution with instant trade confirmation through pop-up4. View Cash, F&O and Currency quote in a single market watch screen5. Real-time updation of Index & Tick by Tick updation of index chart6. Intraday & EOD7. Sophisticated studies such as Technical indicators can be performed by using

appropriate parameters

11.Kotak Securities

Incorporated in 1994, Kotak Securities Limited, the leading stock broking house of India

is 100% subsidiary of Kotak Mahindra Bank. Company offering includes stock broking

through the branch and Internet, Investments in IPO, Mutual funds and Portfolio

management service. It also offers portfolio management services to high net worth

individuals and corporate customers. Kotak securities also distributes a range of financial

products, including company fixed deposits, mutual funds, initial public offerings,

secondary debt, equity, and small savings schemes.

Most of the services provided by the company are available through its internet portal. In

early 2009 company launched Saxo's global trading platform in India. This platform

provide direct access to equities, ETF's and REITS spanning 24 stock exchanges across

the USA, Europe, Asia and Australia.

Kotak Securities is a corporate member of both Bombay Stock Exchange (BSE) and

National Stock Exchange (NSE). Currently, Kotak Securities is one of the largest broking

houses in India with wide geographical reach.


Account Types:


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Kotak offers different account types according to users requirement:

1. Super DerivativesSuper Derivatives account is specially made for those investors who are averse to taking

risks and trade high volumes in futures and options.

Risk would be reduced in this account as account is mainly focused on derivative

investments. Kotak has dedicated teams for technical and derivative analysis. Ko taks

analyzing team analyzes various parameters of derivative data, so investor need not to

waste their time on data analyzing. An investor gets access to both dealers and experts so

they can speak to them directly via phone/chat. This opportunity gives investor to know

the rationale behind a particular position or strategy at all times, identify opportunities and

know details on market movements etc. In Super Derivatives account an investor also will

be able to use advanced strategies. Kotaks experts suggest strategies to their investors

positions where the risk return ratio is much lower.

One can activate Kotak securities Super Derivatives account with minimum amount Rs.

25 lakh as margin, by way of cash or stock. For Derivative brokerage - Futures is .05%

both sides and for Derivative brokerage - Options is 0.05% or Rs 150 per contract

whichever is higher (both sides). Delivery Brokerage is 0.45%.

2. AutoInvestAutoInvest is a unique Online Trading Account which provide investment planning in

Gold ETFs (Exchange Traded Funds), Equities and Mutual Funds to their customers. Gold

ETFs are mutual fund schemes that will invest the money collected from their investors in

standard gold bullion.

Kotak's advisor gives the recommendation according to investor's risk capability and

investment plans. Minimum investment of Rs 5000 required for AutoInvest account.3. Kotak GatewayKotak Gateway account opens the gateway to a world of investing opportunities for

beginners. Kotak Gateway user can trade anywhere, anytime using internet. Kotak also

offers call and trade facility.

Kotak Securities provide SMS alert, research report, free news and market updates to the

account holders. Best feature of Kotak gateway is call and trade facility. Anybody can

activate Kotak Gateway account with any amount between Rs 20,000 to 5, 00,000. This


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can be in form of cash deposit or the value of the shares you buy. Brokerage will be

charged based on the account type. For intraday trading brokerage is .06% both sides for

less then 25 lakhs and .023% for more then 25 crores.

4. Kotak Privilege CircleKotak Privilege Circle is the premium investment account offed by Kotak Securities.

Along with Kotak Gateway account benefits Kotak provides independent market expertise

and support through a dedicated relationship manager and a dedicated customer service

desk which provides assistance in opening accounts, handling day-to-day problems, and

more. They provides KEAT premium which is an exclusive online tool that lets you

monitor what is happening in the market and view your gains and losses in real-time.

One can activate Kotak Privilege Circle account with any amount more than Rs. 10,00,000

as margin, by way of cash or stock. For intraday trading brokerage is .06% both sides for

less than 25 lakhs and .03% for more than 25 crores.

Other then above 4 accounts, Kotak Securities also provide following accounts:

1. Kotak Freedom for Mutual Fund Investments.2. Kotak Super Saver, a Flat Brokerage and a Low Margin account.3. PMS (Portfolio Management Service), an account for people who need an

expert to help to manage their investments.

4. NRI Account, a online trading an investment account for NRI investors.12.Angel Trade

Angel Group has emerged as one of the top 3 retail broking houses in India. Incorporated

in 1987, it has memberships on BSE, NSE and the two leading commodity exchanges in

India i.e. NCDEX & MCX. Angel is also registered as a depository participant with

CDSL.

Angel's retail stock broking house offering a gamut of retail centric services.

Ebroking Investment Advisory Portfolio Management Services


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Wealth Management Services Commodities TradingTrade In: BSE and NSE

Trading Platforms:

Angel Trade provides 4 trading platforms, 2 are browser based & 2 are application based.

1. Angel investorIt is a browser based trading platform. The rates are updated on clicking the refresh button.

This facility ensures it is not blocked by firewall. Thus it is useful for investor who needs

to access information from places where firewall blocks such data.

2. Angel TradeIt is a browser based trading platform. The rates are updated automatically. This platform

is useful for investors & traders to access market from different terminals.

3. Angel DietIt is an application based trading platform where rates are updated automatically. All

segments are available on a single screen. This is ideal platform for the daily traders.

4. Angel AnywhereIt is an application based trading platform where rates are updated automatically. This is

ideal for investors & traders who are inclined towards trading based on charts & technical

tools.

13.Reliance Money

Reliance Money, A Reliance Capital Limited Company, is the financial services divisionof Reliance Anil Dhirubhai Ambani (ADA) Group. Reliance ADA group is among top 3

business houses in India with wide range of presence across various sectors. Groups

major interests ranges from communications (Reliance Communications) and financial

services (Reliance Capital Ltd), to generation, transmission and distribution of power

(Reliance Energy), infrastructure and entertainment.

Reliance Money has over 22 lakhs customers and more than 10'000 branches in around


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5000 cities in India. Company is among the largest broking and distribution house of

financial products and having share of more than 3% of total stock market volume at BSE

& NSE.

RelianceMoney.com is the web based investment portal (with Online Stock Trading) from

Reliance Money. This website enables its customer to invest & manage most of the

services provided by Reliance Money including Equity (Stock) Trading, Commodity

Trading, Derivatives, Mutual Fund Investment, IPO Investment, Life Insurances, General

insurances, Money Transfer, Forex exchange, Gold Coins and Credit Cards Services.

Company recently entered in to Wealth Management with tools like investment in equity-

linked portfolio management services, structured products, insurance and mutual funds.

The Reliance Money stock trading websites uses special security features 'Security Token',

which makes your online trading experience more secure without complexity.

Stock Trading through RelianceMoney.com is available for BSE and NSE stock

exchanges. Offline trading is also available through Reliance Money partners in more than

5000 city across India and through phone by dialing 022-39886000.

Investment Options

The investment options available with Reliance Money online portal are as below:

1. Equity (Stock) Trading at BSE, NSE and NSE F&O2. IPO Investment3. Derivatives Trading4. Forex Trading5. Commodity Trading(Gold, Silver, Crude etc....) at MCX, NCDEX and NMCE6. Mutual Fund Investment7. Life & General Insurance8. 'Pure Swiss' Gold Coins (99.99% pure, 24 carat)

14.IDBI Paisa Bulider

Idbipaisabuilder.in is a multipurpose online stock trading website from IDBI Capital

Market Services Ltd., a leading provider of financial services in India and is a 100%

subsidiary ofIndustrial Development Bank of India (IDBI).


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Idbipaisabuilder.in allows investing in equity shares, derivatives (futures & options)

mutual funds & IPO's in India Stock Markets. You can buy or sell securities on NSE and

BSE Stock exchanges.

Type of Account

1. Paisa Power Classic AccountPaisa Power Classic Account is online stock trading account for beginners and low

volumn traders in India Stock Market. It allows investor to invest in Equity, Mutual Funds

and IPOs online. Following are few popular features of this account:

a. Online trading account for investing in Equities and Derivatives.b. Short learning curve helps you to start quickly.c. Easy to use features.d. Evaluate & buy mutual funds schemes online and check on fund rankings

through our performance map.

e. Apply for IPOs online. No paper work or check required for applying in IPOs.f. Integration of: Online trading + Bank + Demat accountg. Trading is available in both BSE and NSE.

2. Paisa Power Streaming AccountPaisa Power Streaming Account for online trading is for high volume and frequent equity

traders. As classic account this account also provides investment options in Stocks,

Mutual Funds and Initial public offers online. Following are few popular features of this

account:

a. Live refreshing equity prices, which enable you to keep track of every pricemovement as soon as it takes place.

b. Setting price alerts on the scripts in order to notify you as soon as your scripreaches a particular price point.

c. Multiple market watches, message window and trading window.d. Evaluate & buy mutual funds schemes online and check on fund rankings

through our performance map.

e. Apply for IPOs at the click of a button without any of the hassle of tediouspaperwork and processes involved in an offline IPO application.

f. Trading is available in both BSE and NSE.


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15.Standard CharteredSTCI Capital Markets Limited

Standard Chartered STCI Capital Markets Limited (formerly UTI Securities Ltd), is a

leading broking company in India, provides a wide range of financial services including

Investment Banking, Institutional Equity & Derivative Broking, Fixed Income, Research,

Retail Equity, Portfolio Management, Distribution of financial products and Depository

services.

On 11 January 2008, Standard Chartered Bank Ltd (SCBM) acquired 49% stake in UTI

Securities Limited from Securities Trading Corporation of India (STCI). Accordingly, the

name of the company was changed from UTI Securities Limited to Standard Chartered

STCI Capital Markets Limited.

Standard CharteredSTCI Capital Markets Limited is registered as a trading and clearing

member with Bombay Stock Exchange Limited (BSE), National Stock Exchange of India

Limited (NSE) and MCX Stock Exchange Limited. The Company is also registered as

Depository Participant with Central Depository Services (India) Limited (CDSL) as well

as National Securities Depository Limited (NSDL).


Type of Platforms:

STCI offers 3 different online trading platforms to its customers:

1. Easy Trade:Easy Trade is a powerful and user friendly browser based online trading website for

beginners. It provides unique integrated account which link banking, broking, and demat

accounts. Trader can get the latest stock quotes, unlimited access to trading history,

current order status, access to all back end reports and data.

2. Advanced Trade:Advance Trade is an Applet-based system, designed especially for active traders. Advance

Usec gives access to their traders to view live streaming quotes which enables them to

keep track of real-time price movement. Multiple market watch, message window and


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trading window, all in one screen help customers to track individual stocks and make

timely trades when investing online.

3. Super Trade:Super Trade is an advanced, customizable online trading platform built exclusively for

active traders. It offers professional and complimentary tools which enable their user to

view streaming, intraday, daily and weekly charts, personalized quick stock quote lists and

real-time update.

1.7 Financial Companies other than brokers:

1. Equity masterEquitymaster Agora Research Private Limited is an equal joint venture between Quantum

Information Services Pvt. Ltd. and Agora Inc.

2. Way2wealthWay2Wealth today has established itself as one of Indias Premier Investments

Consultancy Firms, known for making investing simpler, more understandable and

profitable for the investors. We offer a wide range of products & services viz: Equity,

Derivatives, Currency Futures, Commodities Trading, IPO's, Insurance (Life/Non-Life),

Mutual Funds, Portfolio Management Services & Depository Services all under one roof,

for the convenience and benefit of our customers. We service our customer relationships

through a team of over 1000 wealth managers spread across 100 easily accessible

'Investment Outlets' in almost all major towns and cities in India.

3. ValuenotesValueNotes is a leading provider of business intelligence and research, with expertise

across industries, particularly in financial services, media, engineering, healthcare, IT and

the outsourcing industry. Our strengths lie in our analytical ability, and the research and

data collection skills of our researchers and analysts. We have built strong capabilities in

the collection, interpretation and analysis of data - both qualitative and quantitative.

ValueNotes.com: The website provides for an independent and unbiased aggregation of

views, opinions, research, analysis and insights on the Indian financial markets. We seek

to understand,inform and educate the investor, and partner with banks, asset managers,


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stockbrokers, insurers, merchant bankers, distributors and independent financial analysts.

Custom Research: They provide a wide range of bespoke business and financial research

services about specific markets, industries, companies and competitive environments.

They serve leading global corporations, consulting firms, research and B2B publishers, PE

and VC firms, and money managers.

ValueNotes Sourcing Practice: They publish proprietary market intelligence on the

(services) outsourcing industry - in BFSI, e-learning, engineering, healthcare, legal and

publishing - with an emphasis on knowledge services or KPO. SourcingNotes.com is now

one of the largest information providers on the outsourcing industry. Our subscribers

include buyers of outsourcing services, providers, consultants and investors.

4. InvestmentzEstablished in the year 1986, Asit C. Mehta Investment Interrmediates Ltd. (ACMIIL) is

the most trusted and reputed brokerage house known for providing investment related

services in the capital market, money market and depository services in India. The

company has been jointly promoted by noted stock market professionals, Mr. Asit C.

Mehta and Mrs. Deena A. Mehta and is a part of Mumbai-based Nucleus Group of

Companies. The other group companies are engaged in commodity, derivatives, inter-bank

forex broking, development of databases, back-office applications for banks, corporate

document management solutions and Geographical Information Systems (GIS).

Corporate Purpose:

Envisioned to be the Trusted Financial Intermediary, the group has etched out a very

specific corporate purpose. To reach appropriate financial products, services and solutions

to every Indian entity.

Our Beliefs :

That every household can, should, and will need to participate in the financial markets

directly or indirectly to protect their financial interests.

That regulatory/legal compliance ensures economic sustainability.

That transparency and fairness are the cornerstones of all dealings.

That knowledge rather than capital is the key driver of this business.

That product, process, and technology led innovations are necessary preconditions for


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continuously adding value for all our constituents.

That given the environment every person will realize her/ his potential.

1.8 Competitors doing same business as LiveTips:

1. CRN Indiacrnindia.com was registered on the internet on 28th August 1998. and since then has been

giving technical analysis of Indian Stock Market. According to them, their biggest

strength today is that they are online since 10 years and have seen all the bullish and

bearish phases of the stock market, which has strengthened their understanding of the

market and given them the power to sustain through all the cycles. They believe, that the

10 years presence in the field of share market shows acceptability and the fact that all

major search engines rank them among their top searches in the key word Indian stock

market goes to show the credibility.

2. ShareTips InfoSharetipsinfo provides live Indian stock market recommendations on mobile phone and on

yahoo messenger.

Sharetipsinfo is one of the leading tips provider in India. They have a specialized team

ofstock market analyst who study market daily. They dont mind whether marke t is

bullish or bearish as they know how to deal with both of these in best way.

3. Indian-Share-TipsIndian Share Tip has been in the business of stock market for more than two decades and

has seen number of ups and downs in the market and knows Indian stocks as a back of its

palm. It is a worldwide site that provides accurate and profitable stock tips for Indian

stock market based on technical analysis for individual investors in India, U.S, UK and a

number of other countries. Indian Share Tips focuses on accurate opinion, analysis andtransparency to bring unbiased top stock tips of the country which will help the clients

make money daily from Indian Stock Market.

The site has established itself as one of the premier platforms for accurate tips backed with

technical analysis and is bringing perfect day trading tips to make money daily in India. It

is one of the few sites providing research and information on Indian capital markets

mainly based on Technical Analysis and enjoys a strong reputation amongst investors,

brokers and researchers.


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Company

LiveTips Market Research

2.1 Introduction

LiveTips Market Research is promoted by DreamINDIA group, which has an extensive

network in the financial services industry. The Company is headquartered at Bangalore

supported by well-equipped infrastructure and technology. The company has grown

exponentially by offering investment advisory services of global standards through various

centers in operation across the country. The products offered are well researched on

fundamental and technical aspects. It offers regular alerts through SMS and e-mail / Live

Chat through our website. The only aim is to help clients accomplish their financial targets

ranging from Short term to Long term, serving them to visualize a better tomorrow. By

means of companys experience, research, judgment, and skill Live Tips wish to improvise

the financial aspects of our clients life, Live Tips guides clients to invest and manage their

capital in a variety of sectors, reducing the risk by diversifying and increasing their long

term savings. The organization is driven with passion and has an earnest desire in advisingand seeking the clients financial goals, which has helped the organization in realizing its

dreams to build and accomplish every goal of our investors.

The company, LiveTips, believes in Quality rather than quantity and work towards the

achievement of the same. The growth is supported by the highly-efficient Research Team,

which works day in-and-out for maintaining the quality assurance. The Research team is

further divided into equity, commodities and forex. The research is well experienced and

posses a deep knowledge about the respective industries. They work in a well defined

structure shown below. To explain this in detail, the research team tries to find opportunity

to invest in the market based on the technical analysis for the short term, fundamental

analysis for the long term and then news based which could be quarterly earnings

announcements, monetary policy announcements etc.


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Research Process at LiveTips Market Research Pvt Ltd:

Figure.2

The Research team leaves no stone unturned to ensure that they give our clients what theysay. They believe, this strategy makes them different from other players of this industry.

Success of their services is the result of all the background work which consists of core

analyzing the market, before releasing any Tips.

After studying the industry Live Tips have concluded that before Investing into equity

market an investor is confronted with many questions like;

Is it the right time to Buy / sell.. ? Is it the right company to invest.. ? Is this the right price to Buy / sell.. ?

LiveTips provides one stop solution for all these queries. Tips make it easy for people to

invest into stocks without wasting their precious time.

2.2 Origin:

The company is promoted by DreamINDIA group, who has an extensive network in the

financial services industry. In 9 years of existence since establishment, The Company has

grown as powerhouse providing services in equity market. The company started as a small

venture with around 5 employees and with time and experience the company has grown to

a strength of 40 employees across research team, sales and marketing, finance and human

resources. The company is determined to mark its presence in the financial industry by

catering to both domestic as well as international clients.


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Vision, Mission and Values of LiveTips:

Figure.3

Certifications:

LiveTips is an QMS/ISO 9001-2008 certified organization.

The ISO 9001:2008 standard provides a quality management system model for determining

and meeting customer requirements and enhancing its satisfaction. The immediate benefit

that can be realized from the implementation of ISO 9001 is the collective alignment of the

activities of internal processes that are focused towards the enhancement of customer

satisfaction which will result in many other benefits, whether internal or external.

2.3 Growth and Development:

Since establishment the company has grown enormously with respect to:

Market coverage Quality of service Client satisfaction Infrastructure Techniques of analysis

Vision

To have a global

presence as a sought

after Indian research

brand

Mission

To help our customers

make informed and

profitable investment

decisions

Values

Quality

Client Satisfaction

Unbiased


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Market Coverage: LiveTips has more than 15,000 retail clients and more than 12

corporate tie-ups across the globe.

These figures seem to be increasing forever, helping the company to expand in business in

the world-class platform.

Quality of Service:The company belief in quality is so strong that they have never failedin any of their analysis so far, they ensure profit to the respective clients irrespective of the

market behavior.

Bulls and Bears hardly have any effect on the performance of the business, as they take

care of both the extremes.

Client Satisfaction:

Clients are never disheartened with respect to returns on their investment. Tips are 90% accurate which always ensures a minimum valuable return of 30-40

% on investments.

Company encourages clients for time to time feedbacks, so that it can improvisefurther.

Live Tips clients aspire to work with company for a long period of time afterexperiencing the service.

Infrastructure:

We have a well-built up infrastructure with sophisticated softwares to enable us to

maintain industry standards.

We always welcome new technologies in order to help us grow and to remain ahead of our

counterparts in the industry.

Technique of Analysis:Our analysis touches perfection by deploying various techniques.We have an expert research team who study market every moment and come out with the

best possible result.


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2.4 Services Offered

LiveTips has services packaged into three major categories:

1. Commodities2. Forex3. Equity

Commodity: The Commodity Trading packages include Buy/Sell indications and

recommendations emerging in technical charts of:

Bullions: Gold, Silver

Energy: Crude oil and Natural Gas

Base Metals: Copper, Zinc, Nickel, Lead and Aluminium

Combos: Bullions, Energy and Base Metals

Services provided:

Weekly and daily research reports on commodities are published on the companyswebsite to give an edge which is needed to succeed in the commodities market.

Customers are alerted through SMS regarding various trading strategies as and whenBuy/Sell patterns emerges in each commodity.

Forex: LiveTips unique trading solutions are designed to help traders of every level

pursue their goals regardless of their experience or trading strategy in forex market.

They provide tips to do spot transactions which is one of the main financial trading tools on

the international currency markets.

Provide services on cross currencies such as

EUR/USD GBP/USD USD/JPY AUD/USD


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Equity: This service includes Intraday, Delivery and F&O trading tips.

Super combo offer brings together a powerful mix of both trader and investor packswith timely expert advice, stock news and recommendations based on extensive

research, credible reports & unbiased analysis.

It is especially designed for traders looking to tap the profit opportunities in thevolatile markets.

Traders get trading calls before markets open from the stock market experts. It includes Mid-day trading calls, Breaking news, Analysis, Grapevine and much

more.

2.5 Present status:

The Company is headquartered at Bangalore with regional offices in state capitals

supported by well-equipped infrastructure and technology. The company has a well-built

up infrastructure with sophisticated softwares to enable Live Tips to maintain industry

standards. The company always welcomes new technologies in order to grow and toremain ahead of the counterparts in the industry. Company analysis touches perfection by

deploying various techniques. Live Tips has a knowledgeable research team who study

market every moment and come out with the best possible result. The company has well

structured teams as shown below to carry on the research efficiently without leaving any

stone unturned, be it a Technical or Fundamental Analysis.

Foray into International Market

LiveTips has ventures in Singapore & a global research unit in US, which acts as a

centralized Hub and will be functioned in many nations

In the international market, LiveTips provides investment advisory services of global

standards with extensive research in operation across the Global Village and supported by

well-equipped infrastructure and technology. They have an extensive network in the

financial services industry. By means of experience and skill they wish to improvise the


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financial aspects ofcustomers life, Live Tips guides the customers to invest and manage

their capital in a variety of sectors, reducing the risk by diversifying and increasing the

long term savings.

2.6 SWOT Analysis:

Strengths:

1. Strong Research Team: LiveTips has a team of research analysts who areexperienced and have a deep understanding of the commodities, forex and Indian

share market.2. Products: They provide investment recommendations on commodities, forex and

Indian share market.

3. Business model: They not only cater to the day traders but also to a long terminvestor by providing fundamental research analysis and by providing asset

management services.

4. Software Used: They use the best available software to conduct analysis.5. Management: The management team is very motivated and result oriented.

Weakness:

1. Not much of a face to face contact with the clients, so relationship building islimited.

Opportunities:

1. Since the commodities and forex market is global, the company has a greateropportunity to foray in the world markets. Infact, they are trying to enter the Gulf

market, other Asian countries such as China, Singapore, Malaysia and Hongkong

and the US market.

2. The company can become a full fledged investment service provider by adding newproducts to its range of products such as insurance, mutual fund etc.


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Threat:

1.

High competition, the major threat are the brokers. Since the industry is primarilydominated by the stock brokers.

Organization structure

Figure.4

CEO

Fundamental

analysis

Technical analysis

Market

Research

Sales and

marketing

Finance Human

Resources

Equity Commodities Currency


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3.1 Statement of problem

Creation of a good portfolio is a difficult task as far as investors are concerned. But if we

are able to create a good portfolio the return will be very high at the same time risk can be

reduced to a minimum. For this we have to select the right stocks in to our portfolio

depending upon our return expectations and risk carrying capabilities. Here is an attempt to

create an ideal portfolio with minimum risk and maximum returns.

3.2 Objective of study

The project attempts to create and evaluate an ideal portfolio. The main objectives are:

To study equity market basics and understand how to evaluate a company ondifferent parameters.

To apply different tools for company evaluation and stock selection. To analyze different companies and to calculate the risk and return associated with

them.

To pool the better performing companies to make a portfolio which is a welldiversified one with less risk and maximum return.

To apply portfolio models to make efficient portfolio.3.3 Scope of study

This project outlines how to evaluate different stocks and to pick them for creating an

efficient portfolio. The project covers the risk and return associated with individual stocks

and how to evaluate them. It covers the methods to diversify the portfolio and to reduce the

risk.

3.4 Operational Definitions

Introduction to the study: Investment involves making of a sacrifice in the present with the

hope of deriving future benefits. An organized view of the investment process involves

analyzing the basic nature of investment decisions and organizing the activities in the

decision process. Investment process is governed by t h e two important facts of


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investment they are risk and return. Therefore, we first consider these two basic parameters

that are of critical importance to all investors and the trade off that exists between expected

return and risk.

Given the foundation for making investment decisions the trade off between expected

return and risk- we next consider the decision process in investments as it is typically

practiced today. Although numerous separate decisions must be made, for organizational

purposes, this decision process has traditionally been divided into a two step process:

security analysis and portfolio management. Security analysis involves the valuation of

securities, whereas portfolio management involves the management of an investors

investment selections as a portfolio (package of assets), with its own unique characteristics.

Security Analysis

Traditional investment analysis, when applied to securities, emphasizes the projection of

prices and dividends. That is, the potential price of a firms common stock and the future

dividend stream are forecasted, and then discounted back to the present. This intrinsic value

is then compared with the securitys current market price. If the current market price is

below the intrinsic value, a purchase is recommended, and if vice versa is the case sale is

recommended.

Although modern security analysis is deeply rooted in the fundamental concepts just

outlined, the emphasis has shifted. The more modern approach to common stock analysis

emphasizes return and risk estimates rather than mere price and dividend estimates.

Portfolio Management

Portfolios are combinations of assets. Traditional por t fo l io pl anning em phas izes on

the character and the risk bearing capacity of the investor. For example, a young,

aggressive, single adult would be advised to buy stocks in newer, dynamic, rapidly

growing firms. A retired widow would be advised to purchase stocks and bonds in old-line,

established, stable firms, such as utilities. Modern portfolio theory suggests that the


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traditional approach to portfolio analysis, selection, and management may yield less than

optimum results. Hence a more scientific approach is needed, based on estimates of risk

and return of the portfolio and the attitudes of the investor toward a risk-return trade-off

stemming from the analysis of the individual securities.

3.5 Characteristics of Investment

The characteristics of investment can be understood in terms of as

- return,

- risk,

- safety,

- liquidity etc.

Return and RiskThe Basis of Investment Decisions:

Return: Stated in simplest terms, investors wish to earn a return on their money. Cash has

an opportunity cost: By holding cash, you forego the opportunity to earn a return on that

cash. Furthermore, in an inflationary environment, the purchasing power of cash diminishes,

with high rates of inflation bringing a relatively rapid decline in purchasing power. In

investments i t is cr i t ic al to di st in gui sh betw een an expe ct ed retu rn (the

anticipated return for some future period) and a realized return (the actual return over some

past period). Investors invest for the future for the returns they expect to earn but when the

investing period is over, they are left with their realized returns. What investors actually earn

from their holdings may turn out to be more or less than what they expected to earn when

they initiated the investment. This point is the essence of the investments process;

Investors must always consider the risk involved in investing.

Risk: Risk is explained theoretically as the fluctuation in returns from a security. A

security that yields consistent returns over a period of time is termed as risk less security

or risk free security. Risk is inherent in all walks of life. An investor cannot foresee the

future definitely; hence, risk will always exist for an investor. Risk is in fact the watchword

for all investors who enter capital markets. Investment risk can be an extraordinary stress

for many investors. When the secondary market does not respond to rational expectations, the

risk components of such markets are relatively high and most investors fail to recognize the


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real risk involved in the investment process. Risk aversion is the criteria commonly

associated wi th many small investors in the secondary market.

Factors influence risk: Traditionally, investors have talked about several factors causing

risk such as business failure, market fluctuations, change in the interest rate inflation in

the economy, fluctuations in exchange rates changes in the political situation etc. Based

o n the factors affecting the risk the risk can be understood in following manners-

Interest rate risk: The variability in a security return resulting from changes in the level of

interest rates is referred to as interest rate risk. Such changes generally affect securities

inversely, that is other things being equal, security price move inversely to interest rate.

Market risk: The variability in returns resulting from fluctuations in overall market that

the company is a part of stock market is referred to as market risk. Market risk includes a

wide range of factors exogenous to securities themselves, like recession, wars, structural

changes in the economy, and changes in consumer preference. The risk of going down with

the market movement is known as market risk.

Inflation risk: Inflation in the economy also influences the risk inherent in investment. It

may also result in the return from investment not matching the rate of increase in general

price level (inflation). The change in the inflation rate also changes the consumption pattern

and hence investment return carries an additional risk.

Business risk: The changes that take place in an industry and the environment causes riskfor the company in earning the operational revenue creates business risk.

Financial risk: The use of debt financing by the company to finance a larger proportion

of assets causes larger variability in returns to the investors in the faces of different business

situation.


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Liquidity risk: An investment that can be bought or sold quickly without significant

price concession is considered to be liquid. The more uncertainty about the time element

and the price concession the greater the liquidity risk. The liquidity risk is the risk associated

with the particular secondary market in which a security trades.

Exchange rate risk: The change in the exchange rate causes a change in the value of

foreign holdings, foreign trade, and the profitability of the firms, there by returns to the

investors. The exchange rate risk is applicable mainly to the companies who operate oversees.

TYPES OF RISK

Dividing total risk in to its two components, a general (market) component and a specific

(issue) component, we have systematic risk and unsystematic risk which are additive:

Total risk = general risk + specific risk

= market risk + issuer risk

= systematic risk + non systematic risk

Systematic risk: Variability in a securities total return that is directly associated with overall

moment in the general market or economy is called as systematic risk. This risk cannot be

avoided or eliminated by diversifying the investment. Normally diversification eliminates a

part of the total risk the left over after diversification is the non-diversifiable portion of the

total risk or market risk. Virtually all securities have some systematic risk because

systematic risk directly encompasses the interest rate, market and inflation risk. The

investor cannot escape this part of the risk, because no matter how well he or she

diversifies, the risk of the overall market cannot be avoided. If the stock market declines

sharply, most stock will be adversely affected, if it rises strongly, most stocks will appreciatein value. Clearly mark risk is critical to all investors.

Non-systematic risk: Variability in a security total return not related to overall market

variability is called unsystematic (non market) risk. This risk is unique to a particular

security and is associated with such factors as business, financial risk and as well as

liquidity risk. Although all securities tend to have some nonsystematic risk, it is generally

connected with common stocks.


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3.6 Methodology

Data sources

The data used for this project consist of primary as well as secondary data.

The primary data includes information taken from the equity analysts in LiveTips Market

Research, where I did my project. Secondary data includes data regarding stock

information, company balance sheet, P&L statement etc. the secondary data is gathered

from Sensex, company websites and various other websites , magazines etc. related to

equity market.

Interpretation

The data analysis is done with the perspective of achieving the objective of the study.

Detailed analysis of stocks is done from the first step of portfolio ie stock picking till

calculation of returns and risk associated with portfolio.

3.7 Limitations of the study

During analysis only most commonly used tools are utilized and there are many moremethods for evaluation. The tools used are based on certain assumptions and calculations

which may not be applicable in future. Also there is a chance of errors coming from

secondary data sources. Also the assumptions taken in analysis may contain errors.


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Analysis

4.1 Stock pickingthe most important task

One of the difficult tasks in portfolio management is stock picking. Because we need to go

through a large number of stocks to select those which are satisfying our criteria. The method I

followed here is a standard one which helps to pick the better stocks. The method is explained

below.

CAN SLIM

CAN SLIM is a philosophy of screening, purchasing and selling common stock. Developed by

William O'Neil, the co-founder of Investor's Business Daily, it is described in his highly

recommended book "How to Make Money in Stocks".

C = Current Earnings

Here emphasizes is given to choosing stocks whose earnings per share (EPS) in the mostrecent quarterhave grown on a yearly basis. The system strongly asserts that investors should

know how to recognize low-quality earnings figures - that is, figures that are not accurate

representations of company performance. Because companies may attempt to manipulate

earnings, the CAN SLIM system maintains that investors must dig deep and look past the

superficial numbers companies often put forth as earnings figures.

Once we confirm that a company's earnings are of fairly good quality, it's a good idea to check

others in the same industry. Solid earnings growth in the industry confirms the industry is

thriving and the company is ready to break out.

A = Annual Earnings

CAN SLIM also acknowledges the importance of annual earnings growth. The system

indicates that a company should have shown good annual growth (annual EPS) in each of the

last five years.
http://www.investopedia.com/terms/c/canslim.asphttp://www.investopedia.com/terms/c/commonstock.asphttp://www.investor

srishti report 178

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