INTRODUCTION

An investor is a party that makes an investment into one or more categories of assets --- equity, debt securities , real estate, currency, commodity, derivatives such as put and call options, etc. --- with the objective of making a profit. An investor is a party that makes an investment into one or more categories of assets --- equity, debt securities , real estate, currency, commodity, derivatives such as put and call options, etc. --- with the objective of making a profit. The term investor protection defines the entity of efforts and activities to observe safeguard and enforce the rights and claims of a person in his role as an investor. This includes advice and legal action. The assumption of a need of protection is based on the experience that financial investors are usually structurally inferior to providers of financial services and products due to lack of professional knowledge, information and/or experience. A stock trader or a stock investor is an individual or firm who buys and sells stocks in the financial markets. Many stock traders will trade bonds (and possibly other financial assets) as well.Individuals or firms trading equity (stock) on the stock markets as their principal capacity are called stock traders. Stock traders usually try to profit from short-term price volatility with trades lasting anywhere from several seconds to several weeks. The stock trader is usually a professional. Persons can call themselves full or part-time stock traders/investors while maintaining other professions. When a stock trader/investor has clients, and acts as a money manager or adviser with the intention of adding value to their clients finances, he is also called a financial advisor or manager. In this case, the financial manager could be an independent professional or a large bank corporation employee. This may include managers dealing with investment funds, hedge funds, mutual funds, and pension funds, or other professionals in equity investment, fund management, and wealth management. Several different types of stock trading exist including day trading, trend following, market making, scalping (trading), momentum trading, trading the news, and arbitrage.

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On the other hand, stock investors are firms or individuals who purchase stocks with the intention of holding them for an extended period of time, usually several months to years. They rely primarily on fundamental analysis for their investment decisions and fully recognize stock shares as part-ownership in the company. Many investors believe in the buy and hold strategy, which as the name suggests, implies that investors will buy stock ownership in a corporation and hold onto those stocks for the very long term, generally measured in years. This strategy was made popular in the equity bull market of the 1980s and 90s where buy-and-hold investors rode out shortterm market declines and continued to hold as the market returned to its previous highs and beyond. However, during the 2001-2003 equity bear market, the buy-and-hold strategy lost some followers as broader market indexes like the NASDAQ saw their values decline by over 60%.

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NEED OF THE STUDY

The study is undertaken to understand Equity market and to find out the new opportunities to attract the investors towards the Equities according to their risk preferences. Before investing money in financial assets, investors should thoroughly know about the Economy, Industry, and Company. Along with measuring companys financial performance investors should also need to analyze the stocks price movements in secondary markets.

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OBJECTIVES OF THE STUDY

Investors demographics influence choice of investment in Indiabulls Securities. To study the impact of investors risk preferences in Indiabulls Securities. To find out the reasons for investing in equities. To examine the various investment options which are available in the market?

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SCOPE OF THE STUDY

The study is conducted to understand the functioning of Equities in India Equity market. The choice of location for the study is based on the responses given by the investors of who are operating the stock market in twin cities. This study will helpful in understanding the behavior and risk preferences of investors.

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RESEARCH METHODOLOGY
Primary Data: The study conducted by Indiabulls Securities .Official only subjective evaluation of indication of indication of investors risk preferences among the various investors. The ground for this study is Hyderabad. Information about the demographics of investors and risk preferences of investment among various investors collected through primary sources using a questionnaire collects the investors responses and their investment behaviors. Secondary Data: Secondary Data taken by through Internet, Magazines Articles and Text Books. Sample size: 100 Investors of Indiabulls Securities. Has been taken time period is 45 days. Pie charts, Bar charts have been used to show the investor preference.

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LIMITATIONS OF THE STUDY

Primary data that will be the sample size of a 100 investors only. The time period is only for 45 days to do a project and the study will be done based on the data available within the time period only. The study is limited to twin cities investors only. The study is limited to only one stock broking company so we cant predict whole data for analysis. This study was only done with the help of investors and other officials.

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REVIEW OF LITERATURE
Massimo Guidolin and Giovanna Nicodano in their research on small caps in international equity portfolios: The effect of variance risk , they show that predictable covariances between means and variances of stock returns may have a first order effect on portfolio composition. In an international asset menu which includes small capitalization equity indices, they find that a three-state, heteroskedastic regime switching VAR model is required to provide a good fit to weekly return data and to accurately predict the dynamics in the joint density of returns. As a result of the nonlinear dynamic features revealed by the data, small cap portfolios become riskier in bear markets, i.e., display negative co-skew ness with other stock indices. Because of this property, a power utility investor ought to hold a well-diversified portfolio, despite the high risk premium and Sharpe ratios offered by small capitalization stocks. On the contray, small caps command large optimal weights when the investor ignores variance risk, by incorrectly assuming joint normality of retuns. Jamil Baz, Eric Briys and Bart.Bronneenberg in their research on Risk Perception in the short Run and Long Run they find that there is an ongoing controversy in financial economics regarding the role of the time horizon in portfolio selection. This problem is relevant in a broader context, whatever consumers or managers make decisions that involve both time and risk. The purpose of this paper is to review recent findings from the decision making literature so as to shed new light on how the short run vs. long run contingency may determine risk taking perception. Brue Niendorf 1 and Thomas Ottaway 2-June 2006 Individual risk preferences .By enamining the wealth characteristics of agents of different risk preferences, we study the financial incentive of investors to demonstrate different risk preferences. To accomplish this, we model the stock market utilizing artificial adaptive agents .If investors have incentive to very their risk preferences, or if investors of a constant risk preferences vary the way they participate in the market conditions, this could lead to time variation in market risk premiums .Use find that agents have significant incentive to demonstrate different risk preferences under different market conditions.

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INTRODUCTION OF CONCEPTS OF EQUITY Equity: A fund brought into a business by its shareholders is called equity. It is a measure of a stake of a person or group of persons starting a business. Investing in Equity Means: When you buy a companys equity, you are in effect financing it, and being compensated with a stake in the business. You become part-owner of the company, entitled to dividends and other benefits that the company may announce, but without any guarantee of a return on your investments Fundamental Analysis: The analysis of factual information like financial figures, balance sheet, and other information publicly available is known as fundamental analysis. This information is used to derive a fair price of the share of the company. The faithful fundamentalists believe that the market incorporates all facts relating to the financial performance of the company. But systematic analysis use tools such as ratio analyses (P/E, MV/BV) and discounted cash flow analysis in order to arrive at the fair value of a company and hence its share. Basics of Equity Market - Stock Exchange: A common platform where buyers and sellers come together to transact in stocks and shares. It may be a physical entity where brokers trade on a physical trading via open outcry system or a virtual environment. Electronic Trading: Electronic trading eliminates the need for physical trading floors. Brokers can trade from their offices, using fully automated screen-based processes. Their workstations are connected to a Stock exchanges central computer via satellite using Very Small Aperture Terminus (VSATs). The orders placed by brokers reach the Exchanges central computer and are matched electronically.

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Exchanges in India: The Stock Exchange, Mumbai (BSE) and National stock Exchange (NSE) are the countrys two leading Exchanges. nationwide trading via VSAT systems. Index: An index is a comprehensive measure of market trends, intended for investors who are concerned with general stock market price movements. An index comprises stocks that have large liquidity and market capitalization. Each stock is given weightage in index equivalent to its market capitalization. At the NSE, capitalization of NIFTY (fifty stocks) is taken as a base capitalization, with the value set at 1000. Similarly, BSE se3nsitive Index/Sensex comprises 30 selected stocks. The Index value compares the days market capitalization vis--vis base capitalization & indicates how prices in general have moved over period of time Executing an Order: Select broker of your choice and enter into broker-client agreement and fill in the client registration form. Place your order with your broker preferably in writing. Get a trade confirmation slip on the day the trade is executed and ask for the contract note at the end of the trade date. Need of a Broker: As per SEBI (Securities and Exchange Board of India) Regulations, only registered members can operate in the stock market. One can trade by executing deal only other through registered broker of a recognized Stock Exchange or thorough SEBI-registered sub-broker. Contract Note: A contract note describes the rate, date, time at which the trade was transacted and the brokerage rate. Contract note issued in the prescribed format establishes legally enforceable relationship between the client and the member in respect of trades stated in the contract note. Those are made in duplicate and the member and the client both There are 20 other regional Exchanges, connected via the Inter-Connected stock Exchange (ICSE). The BSE and NSE allow

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keep copy each. Client should receive the contract note within 24 hours of the executed trade. Corporate Benefits/Action Book - Closure/Record Date: Book closure and record date help a company determine exactly the shareholders of a company as on a given date. Book closure refers to the closing of register of the names or investors in the records of company. Companies announce book closure dates from time to time. The benefits of dividends, bonus issues, rights issue accruing to investors whose name appears on the companys records as on a given date, is known as the record date. An investor might purchase a share-cum-dividend, cum rights or cum bonus and may therefore expect to receive these benefits as the next shareholder. In order to receive this, the share has to be transferred in the investors name, or he would stand deprived of the benefits. The buyer of such a shares It must be purchased at cum benefits prices are transferred before book-closure. ensured that price paid for the shares is ex-benefit and cum benefit. Difference between Book Closure and Record Date: In case of a record date, the company does not close its register of security holders. Record date is the cutoff date for determining the number of registered members who are eligible for the corporate benefits. In case of book closure, shares cannot be sold on an Exchange bearing a date on the transfer deed earlier than the book closure. This does not hold good for the record date. No-delivery Period: Whenever a company announces a book closure or record date, The Exchange sets up a no-delivery (ND) period for that security. During this period only trading is permitted in the security. However, these trades are settled only after the no-delivery period is over. This is done to ensure that investors entitlement for the corporate benefits is clearly determined. Ex-Dividend Date: The date on or after which a security begins trading without the dividend (cash or stock) included in the contract price.

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Ex-Date: The first day of the no-delivery period is the ex-date. If there are any corporate benefits such as rights, the buyer of the shares on or after the ex-date will not be eligible for the benefits. Bonus Issue: While investing in shares motives is not only capital gains but also proportionate share of surplus generated from the operations once all other stakeholders have been paid. But the distribution of this surplus to shareholders seldom happens. Instead, this is transferred to the reserves and surplus account. If the reserves and surplus amount to the share capital account by mere book entry. This is done by increasing number of shares outstanding and every shareholder is given bonus shares in a ratio called the bonus ratio and such an issue is called bonus issue. If the bonus ratio 1:2, it means that for every two shares held, the shareholder is entitled to one extra share. So if a shareholder holds two shares, post bonus he will hold three. Split: Split is book entry where in the face value of the share is altered to create greater number of shares outstanding without calling for fresh capital/altering the share capital account. For example, if a company announces a two-way split, it means that share of the face value of Rs. 10 is split into two shares of face value of Rs. 5 each and a person holding one share now holds two shares. Buy Back: As the name suggests, it is a process by which company can buy back its shares from shareholders. Company may buy back shares in various ways: from existing shareholders on a proportionate basis; through a tender offer from open market; through book-building process; from the Stock Exchange; or from odd lot holders. Company cannot buy back through negotiated deals on/off the Stock Exchange, through spot transactions or through any private arrangement.

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Settlement Cycle: The accounting period for the securities traded on the Exchange. On the NSE, the cycle begins on Wednesday and ends on the Tuesday, and on the BSE the cycle commences on Monday and ends on Friday. At the end of this period, the obligations of each broker are calculated and the brokers settle their respective obligations as per the rules, bye-laws and regulations of the clearing corporation. If transaction is entered on the first day of the settlement, the same will be settled on the eighth working day excluding the day of transaction. However, if the same is done on the last day excluding the day of transaction. However, if the same is done on the last day of the settlement, it will be settled on the fourth working day excluding the day of transact Rolling Settlement: The rolling settlements ensure that each days trade is settled by keeping a fixed gap of a specified number of working days between a trade and its settlement. At present, this gap is five working days after the trading day. The waiting period is uniform for all trades. Deliver the same shares and payment to broker As a seller, in order to ensure smooth settlement you should deliver those shares to your broker immediately after getting the contract note for sale but in any case before the pay-in day. Similarly, as a buyer, one should pay immediately on the receipt of the contract note for purchase but in any case before the pay-in day. Short Selling: Short selling is a legitimate trading strategy. It is sale of a security that the seller does not own, or any sale that is completed by the delivery of security borrowed by the seller. Sellers take the risk that the price at which they sold short. Auction: An auction is conducted for those securities that members fail to deliver/short deliver during pay-in. Three factors primarily give rise to an auction: short deliveries, un-rectified bad deliveries, and un-rectified company objections.

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Market for Auctions: The buy/sell auction for a market security is managed through the auction market. As opposed to the normal market where trade matching is an on-going process, trade matching process for auction starts after auction period is over. If the Shares are not Bought in the Auction: If the shares are not bought at the auction i.e. if the shares are not offered for sale, sale Exchange squares up the transaction as per SEBI guidelines. The transaction is squared up at the highest price from the relevant trading period till the auction day or at 20% above the last available closing price whichever is higher. Pay-in and pay-out of funds for auction square up is held along with the pay-out for the relevant auction. Bad Delivery: SEBI has formulated uniform guidelines for good and bad delivery of documents. Bad delivery may pertain to transfer deed being torn, mutilated, overwritten, defaced, or if there are spelling mistakes in the name of company on the transfer. Bad delivery exists only when shares are transferred physically. In De mat bad delivery does not exist. Company Objections: List document reasons by company for not transferring share in the name of investors are called company objections. Rejection occurs due to a signature difference, or fake shares, or forgery, or if there is a court injunction preventing the transfer of the shares. The broker must immediately be notified. Company objection cases should be reported within 12 months from the date the date of issue of the memo for the original quantity of share under objection. Replacement of Shares in Case of Company Objections: The member who has sold the shares first on the Exchange is responsible for replacing the shares within 21 days of the Exchange being informed. objection cases that are not rectified or replaced are normally auctioned. Company

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Transfer of Physical Shares: After a sale, the share certificate along with a proper transfer deed duly stamped and complete in all respects is sent to the company for transfer in the name of the buyer. Once the transfer is registered in the share transfer register maintained by the company, the process of transfer is complete.

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INDUSTRIAL PROFILE
EVOLUTION Indian Stock Markets are one of the oldest in Asia. Its history dates back to nearly 200 years ago. The earliest records of security dealings in India are meager and obscure. The East India Company was the dominant institution in those days and business in its loan securities used to be transacted towards the close of the eighteenth century. By 1830's business on corporate stocks and shares in Bank and Cotton presses took place in Bombay. Though the trading list was broader in 1839, there were only half a dozen brokers recognized by banks and merchants during 1840 and 1850. The 1850's witnessed a rapid development of commercial enterprise and brokerage business attracted many men into the field and by 1860 the number of brokers increased into 60. In 1860-61 the American Civil War broke out and cotton supply from United States of Europe was stopped; thus, the 'Share Mania' in India begun. The number of brokers increased to about 200 to 250. However, at the end of the American Civil War, in 1865, a disastrous slump began (for example, Bank of Bombay Share which had touched Rs 2850 could only be sold at Rs. 87). At the end of the American Civil War, the brokers who thrived out of Civil War in 1874, found a place in a street (now appropriately called as Dalal Street) where they would conveniently assemble and transact business. In 1887, they formally established in Bombay, the "Native Share and Stock Brokers' Association" (which is alternatively known as The Stock Exchange "). In 1895, the Stock Exchange acquired a premise in the same street and it was inaugurated in 1899. Thus, the Stock Exchange at Bombay was consolidated.

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Other Leading Cities in Stock Market Operations Ahmadabad gained importance next to Bombay with respect to cotton textile industry. After 1880, many mills originated from Ahmadabad and rapidly forged ahead. As new mills were floated, the need for a Stock Exchange at Ahmadabad was realized and in 1894 the brokers formed "The Ahmadabad Share and Stock Brokers' Association". What the cotton textile industry was to Bombay and Ahmadabad, the jute industry was to Calcutta. Also tea and coal industries were the other major industrial groups in Calcutta. After the Share Mania in 1861-65, in the 1870's there was a sharp boom in jute shares, which was followed by a boom in tea shares in the 1880's and 1890's; and a coal boom between 1904 and 1908. On June 1908, some leading brokers formed "The Calcutta Stock Exchange Association". In the beginning of the twentieth century, the industrial revolution was on the way in India with the Swadeshi Movement; and with the inauguration of the Tata Iron and Steel Company Limited in 1907, an important stage in industrial advancement under Indian enterprise was reached. Indian cotton and jute textiles, steel, sugar, paper and flour mills and all companies generally enjoyed phenomenal prosperity, due to the First World War. In 1920, the then demure city of Madras had the maiden thrill of a stock exchange functioning in its midst, under the name and style of "The Madras Stock Exchange" with 100 members. However, when boom faded, the number of members stood reduced from 100 to 3, by 1923, and so it went out of existence. In 1935, the stock market activity improved, especially in South India where there was a rapid increase in the number of textile mills and many plantation companies were floated. In 1937, a stock exchange was once again organized in Madras - Madras Stock Exchange Association (Pvt) Limited. (In 1957 the name was changed to Madras Stock Exchange Limited).

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Lahore Stock Exchange was formed in 1934 and it had a brief life. It was merged with the Punjab Stock Exchange Limited, which was incorporated in 1936. Indian Stock Exchanges - An Umbrella Growth The Second World War broke out in 1939. It gave a sharp boom which was followed by a slump. But, in 1943, the situation changed radically, when India was fully mobilized as a supply base. On account of the restrictive controls on cotton, bullion, seeds and other commodities, those dealing in them found in the stock market as the only outlet for their activities. They were anxious to join the trade and their number was swelled by numerous others. Many new associations were constituted for the purpose and Stock Exchanges in all parts of the country were floated. The Uttar Pradesh Stock Exchange Limited (1940), Nagpur Stock Exchange Limited (1940) and Hyderabad Stock Exchange Limited (1944) were incorporated. In Delhi two stock exchanges - Delhi Stock and Share Brokers' Association Limited and the Delhi Stocks and Shares Exchange Limited - were floated and later in June 1947, amalgamated into the Delhi Stock Exchnage Association Limited. Post-independence Scenario Most of the exchanges suffered almost a total eclipse during depression. Lahore Exchange was closed during partition of the country and later migrated to Delhi and merged with Delhi Stock Exchange. Bangalore Stock Exchange Limited was registered in 1957 and recognized in 1963. Most of the other exchanges languished till 1957 when they applied to the Central Government for recognition under the Securities Contracts (Regulation) Act, 1956. Only Bombay, Calcutta, Madras, Ahmadabad, Delhi, Hyderabad and Indore, the well established exchanges, were recognized under the Act. Some of the members of the other Associations were required to be admitted by the recognized stock exchanges 80

on a concessional basis, but acting on the principle of unitary control, all these pseudo stock exchanges were refused recognition by the Government of India and they thereupon ceased to function. Thus, during early sixties there were eight recognized stock exchanges in India (mentioned above). The number virtually remained unchanged, for nearly two decades. During eighties, however, many stock exchanges were established: Cochin Stock Exchange (1980), Uttar Pradesh Stock Exchange Association Limited (at Kanpur, 1982), and Pune Stock Exchange Limited (1982), Ludhiana Stock Exchange Association Limited (1983), Gauhati Stock Exchange Limited (1984), Kanara Stock Exchange Limited (at Mangalore, 1985), Magadh Stock Exchange Association (at Patna, 1986), Jaipur Stock Exchange Limited (1989), Bhubaneswar Stock Exchange Association Limited (1989), Saurashtra Kutch Stock Exchange Limited (at Rajkot, 1989), Vadodara Stock Exchange Limited (at Baroda, 1990) and recently established exchanges - Coimbatore and Meerut. Thus, at present, there are totally twenty one recognized stock exchanges in India excluding the Over the Counter Exchange of India Limited (OTCEI) and the National Stock Exchange of India Limited (NSEIL). The Table given below portrays the overall growth pattern of Indian stock markets since independence. It is quite evident from the Table that Indian stock markets have not only grown just in number of exchanges, but also in number of listed companies and in capital of listed companies. The remarkable growth after 1985 can be clearly seen from the Table, and this was due to the favouring government policies towards security market industry. Trading Pattern of the Indian Stock Market: Trading in Indian stock exchanges are limited to listed securities of public limited companies. They are broadly divided into two categories, namely, specified securities (forward list) and non-specified securities (cash list). Equity shares of dividend paying, growth-oriented companies with a paid-up capital of atleast Rs.50 million and a market capitalization of atleast Rs.100 million and having more than 20,000 shareholders are, normally, put in the specified group and the balance in nonspecified group.

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Two types of transactions can be carried out on the Indian stock exchanges: (a) spot delivery transactions "for delivery and payment within the time or on the date stipulated when entering into the contract which shall not be more than 14 days following the date of the contract: and (b) forward transactions "delivery and payment can be extended by further period of 14 days each so that the overall period does not exceed 90 days from the date of the contract". The latter is permitted only in the case of specified shares. The brokers who carry over the outstandings pay carry over charges (cantango or backwardation) which are usually determined by the rates of interest prevailing. A member broker in an Indian stock exchange can act as an agent, buy and sell securities for his clients on a commission basis and also can act as a trader or dealer as a principal, buy and sell securities on his own account and risk, in contrast with the practice prevailing on New York and London Stock Exchanges, where a member can act as a jobber or a broker only. The nature of trading on Indian Stock Exchanges are that of age old conventional style of face-to-face trading with bids and offers being made by open outcry. However, there is a great amount of effort to modernize the Indian stock exchanges in the very recent times. Over The Counter Exchange of India (OTCEI) The traditional trading mechanism prevailed in the Indian stock markets gave way to many functional inefficiencies, such as, absence of liquidity, lack of transparency, unduly long settlement periods and benami transactions, which affected the small investors to a great extent. To provide improved services to investors, the country's first ringless, scripless, electronic stock exchange - OTCEI - was created in 1992 by country's premier financial institutions - Unit Trust of India, Industrial Credit and Investment Corporation of India, Industrial Development Bank of India, SBI Capital Markets, Industrial Finance Corporation of India, General Insurance Corporation and its subsidiaries and CanBank Financial Services.

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Trading at OTCEI is done over the centres spread across the country. Securities traded on the OTCEI are classified into:

Listed Securities - The shares and debentures of the companies listed on the OTC can be bought or sold at any OTC counter all over the country and they should not be listed anywhere else

Permitted Securities - Certain shares and debentures listed on other exchanges and units of mutual funds are allowed to be traded Initiated debentures - Any equity holding atleast one lakh debentures of particular scrip can offer them for trading on the OTC. OTC has a unique feature of trading compared to other traditional exchanges.

That is, certificates of listed securities and initiated debentures are not traded at OTC. The original certificate will be safely with the custodian. But, a counter receipt is generated out at the counter which substitutes the share certificate and is used for all transactions. In the case of permitted securities, the system is similar to a traditional stock exchange. The difference is that the delivery and payment procedure will be completed within 14 days. Compared to the traditional Exchanges, OTC Exchange network has the following advantages:

OTCEI has widely dispersed trading mechanism across the country which provides greater liquidity and lesser risk of intermediary charges. Greater transparency and accuracy of prices is obtained due to the screen-based scripless trading. Since the exact price of the transaction is shown on the computer screen, the investor gets to know the exact price at which s/he is trading. Faster settlement and transfer process compared to other exchanges. In the case of an OTC issue (new issue), the allotment procedure is completed in a month and trading commences after a month of the issue closure, whereas it takes a longer period for the same with respect to other exchanges.

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Thus, with the superior trading mechanism coupled with information transparency investors are gradually becoming aware of the manifold advantages of the OTCEI. National Stock Exchange (NSE): With the liberalization of the Indian economy, it was found inevitable to lift the Indian stock market trading system on par with the international standards. On the basis of the recommendations of high powered Pherwani Committee, the National Stock Exchange was incorporated in 1992 by Industrial Development Bank of India, Industrial Credit and Investment Corporation of India, Industrial Finance Corporation of India, all Insurance Corporations, selected commercial banks and others. Trading at NSE can be classified under two broad categories: (a) Wholesale Debt Market and (b) Capital Market. Wholesale debt market operations are similar to money market operations institutions and corporate bodies enter into high value transactions in financial instruments such as government securities, treasury bills, public sector unit bonds, commercial paper, certificate of deposit, etc. There are two kinds of players in NSE: (a) Trading members and (b) Participants. Recognized members of NSE are called trading members who trade on behalf of themselves and their clients. Participants include trading members and large players like banks who take direct settlement responsibility. Trading at NSE takes place through a fully automated screen-based trading mechanism which adopts the principle of an order-driven market. Trading members can stay at their offices and execute the trading, since they are linked through a communication network. The prices at which the buyer and seller are willing to transact will appear on the screen. When the prices match the transaction will be completed and a confirmation slip will be printed at the office of the trading member. 80

NSE has several advantages over the traditional trading exchanges. They are as follows:

NSE brings an integrated stock market trading network across the nation. Investors can trade at the same price from anywhere in the country since intermarket operations are streamlined coupled with the countrywide access to the securities.

Delays in communication, late payments and the malpractices prevailing in the traditional trading mechanism can be done away with greater operational efficiency and informational transparency in the stock market operations, with the support of total computerized network. Unless stock markets provide professionalized service, small investors and

foreign investors will not be interested in capital market operations. And capital market being one of the major source of long-term finance for industrial projects, India cannot afford to damage the capital market path. In this regard NSE gains vital importance in the Indian capital market system. Preamble Often, in the economic literature we find the terms development and growth are used interchangeably. However, there is a difference. Economic growth refers to the sustained increase in per capita or total income, while the term economic development implies sustained structural change, including all the complex effects of economic growth. In other words, growth is associated with free enterprise, where as development requires some sort of control and regulation of the forces affecting development. Thus, economic development is a process and growth is a phenomenon. Economic planning is very critical for a nation, especially a developing country like India to take the country in the path of economic development to attain economic growth.

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Why Economic Planning for India? One of the major objective of planning in India is to increase the rate of economic development, implying that increasing the rate of capital formation by raising the levels of income, saving and investment. However, increasing the rate of capital formation in India is beset with a number of difficulties. People are poverty ridden. Their capacity to save is extremely low due to low levels of income and high propensity to consume. Therefor, the rate of investment is low which leads to capital deficiency and low productivity. Low productivity means low income and the vicious circle continues. Thus, to break this vicious economic circle, planning is inevitable for India. The market mechanism works imperfectly in developing nations due to the ignorance and unfamiliarity with it. Therefore, to improve and strengthen market mechanism planning is very vital. In India, a large portion of the economy is nonmonitised; the product, factors of production, money and capital markets is not organized properly. Thus the prevailing price mechanism fails to bring about adjustments between aggregate demand and supply of goods and services. Thus, to improve the economy, market imperfections has to be removed; available resources has to be mobilized and utilized efficiently; and structural rigidities has to be overcome. These can be attained only through planning. In India, capital is scarce; and unemployment and disguised unemployment is prevalent. Thus, where capital was being scarce and labour being abundant, providing useful employment opportunities to an increasing labour force is a difficult exercise. Only a centralized planning model can solve this macro problem of India. Further, in a country like India where agricultural dependence is very high, one cannot ignore this segment in the process of economic development. Therefore, an economic development model has to consider a balanced approach to link both agriculture and industry and lead for a paralleled growth. Not to mention, both agriculture and industry cannot develop without adequate infrastructural facilities which only the state can provide and this is possible only through a well carved out planning strategy. The governments role in providing infrastructure is unavoidable due to the fact that the role of private sector in infrastructural development of India is very 80

minimal since these infrastructure projects are considered as unprofitable by the private sector. Further, India is a clear case of income disparity. Thus, it is the duty of the state to reduce the prevailing income inequalities. This is possible only through planning. Planning History of India The development of planning in India began prior to the first Five Year Plan of independent India, long before independence even. The idea of central directions of resources to overcome persistent poverty gradually, because one of the main policies advocated by nationalists early in the century. The Congress Party worked out a program for economic advancement during the 1920s, and 1930s and by the 1938 they formed a National Planning Committee under the chairmanship of future Prime Minister Nehru. The Committee had little time to do anything but prepare programs and reports before the Second World War which put an end to it. But it was already more than an academic exercise remote from administration. Provisional government had been elected in 1938, and the Congress Party leaders held positions of responsibility. After the war, the Interim government of the pre-independence years appointed an Advisory Planning Board. The Board produced a number of somewhat disconnected Plans itself. But, more important in the long run, it recommended the appointment of a Planning Commission. The Planning Commission did not start work properly until 1950. During the first three years of independent India, the state and economy scarcely had a stable structure at all, while millions of refugees crossed the newly established borders of India and Pakistan, and while ex-princely states (over 500 of them) were being merged into India or Pakistan. The Planning Commission as it now exists was not set up until the new India had adopted its Constitution in January 1950.

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Objectives of Indian Planning The Planning Commission was set up the following Directive principles:

To make an assessment of the material, capital and human resources of the country, including technical personnel, and investigate the possibilities of augmenting such of these resources as are found to be deficient in relation to the nations requirement.

To formulate a plan for the most effective and balanced use of the countrys resources. Having determined the priorities, to define the stages in which the plan should be carried out, and propose the allocation of resources for the completion of each stage.

To indicate the factors which are tending to retard economic development, and determine the conditions which, in view of the current social and political situation, should be established for the successful execution of the Plan.

To determine the nature of the machinery this will be necessary for securing the successful implementation of each stage of Plan in all its aspects. To appraise from time to time the progress achieved in the execution of each stage of the Plan and recommend the adjustments of policy and measures that such appraisals may show to be necessary.

To make such interim or auxiliary recommendations as appear to it to be appropriate either for facilitating the discharge of the duties assigned to it or on a consideration of the prevailing economic conditions, current policies, measures and development programs; or on an examination of such specific problems as may be referred to it for advice by Central or State Governments.

The long-term general objectives of Indian Planning are as follows:

Increasing National Income Reducing inequalities in the distribution of income and wealth Elimination of poverty Providing additional employment; and Alleviating bottlenecks in the areas of : agricultural production, manufacturing capacity for producers goods and balance of payments.

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Economic growth, as the primary objective has remained in focus in all Five Year Plans. Approximately, economic growth has been targeted at a rate of five per cent per annum. High priority to economic growth in Indian Plans looks very much justified in view of long period of stagnation during the British rule

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COMPANY PROFILE
Introduction to India bulls: Indiabulls is Indias leading Financial and Real Estate Company with a wide presence throughout India. They ensure convenience and reliability in all their products and services. Indiabulls has over 640 branches all over India. The customers of Indiabulls are more than 4,50,000 which covers from a wide range of financial services and products from securities, derivatives trading, depositary services, research & advisory services, consumer secured & unsecured credit, loan against shares and mortgage & housing finance. The company employs around 4000 Relationship managers who help the clients to satisfy their customized financial goals. Indiabulls entered the Real Estate business in the year 2005 with its group of companies. Large scale projects worth several hundred million dollars are evaluated by them. Indiabulls Financial Services Ltd is listed on the National Stock Exchange (NSE), Bombay Stock Exchange (BSE) and Luxembourg Stock Exchange. The market capitalization of Indiabulls is around USD 2500 million (29thDecember, 2006). Consolidated net worth of the group is around USD 700 million. Indiabulls and its group companies have attracted USD 500 million of equity capital in Foreign Direct Investment (FDI) since March 2000. Some of the large shareholders of Indiabulls are the largest financial institutions of the world such as Fidelity Funds, Goldman Sachs, Merrill Lynch, Morgan Stanley and Farallon Capital. In middle of 1999, when e-commerce was just about starting in India, Sameer Gehlaut and his close IIT Delhi friend Rajiv Rattan got together and bought a defunct securities company with a NSE membership and started offering brokerage services. A Few months later, their friend Saurabh Mittal also joined them. By December 1999, the company embarked on its journey to build one of the first online platforms in India for offering internet brokerage services. In January 2000, the 3 founders incorporated Indiabulls Financial Services and made it as the flagship company.

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In mid 2000, Indiabulls Financial Services received venture capital funding from Mr. L.N. Mittal & Mr Harish Fabiani. In late 2000, Indiabulls Securities, a subsidiary of Indiabulls Financial Services started offering online brokerage services and simultaneously opened physical offices across India. By 2003, Indiabulls securities had established a strong pan India presence and client base through its offices and on the internet. In September 2004, Indiabulls Financial Services went public with an IPO at Rs 19 a share. In late 2004, Indiabulls Financial Services started its financing business with consumer loans. In March 2005, Indiabulls Properties Private Ltd, a subsidiary of Indiabulls Financial Services, participated in government auction of Jupiter Mills, a defunct 11 acre textile mill owned by NTC in Lower Parel, Mumbai. Indiabulls Properties private Ltd won the mill in auction and that purchase started Indiabulls real estate business. A few months later, Indiabulls Real Estate company pvt ltd bought Elphinstone mill in Lower Parel, another textile mill auctioned by NTC. With real estate business gaining size, Indiabulls Financial Services demerged the real estate business under Indiabulls Real Estate and each shareholder of Indiabulls Financial Services received additional share of Indiabulls Real Estate through the demerger. Subsequently, Indiabulls Financial Services also demerged Indiabulls Securities and each shareholder of Indiabulls Financial Services also received a share of Indiabulls Securities. In year 2007, Indiabulls Real Estate incorporated a 100% subsidiary, Indiabulls Power, to build power plants and started work on building Nashik & Amrawati thermal power plants. Indiabulls Power went public in September 2009. Today, Indiabulls Group has a networth of Rs 16,796 Crore & has a strong presence in important sectors like financial services, power & real estate through independently listed companies and Indiabulls Group continues its journey of building businesses with strong cash flows.

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MANAGEMENT TEAM Indiabulls Group

Mr. Rajiv Rattan - Vice Chairman Mr Saurabh Mittal - Vice Chairman Mr Gagan Banga - Group Spokesperson Mr Ashok Kacker - Group President Mr Saket Bahuguna - Group CLO Mr Ashok Sharma - Group CFO Mr Ajit Mittal - Group Director Mr Gurbans Singh - Group Director Mr Tejinderpal Singh Miglani - Group CIO

Indiabulls Financial Services Limited

Mr. Gagan Banga - CEO Mr. Ashwini Kumar Hooda - DMD

Indiabulls Real Estate Limited

Mr. Vipul Bansal - CEO Mr. Narendra Gehlaut - Joint MD

Indiabulls Power Limited

Mr. Ranjit Gupta - CEO Mr Murali Subramanian - COO

Indiabulls Securities Limited

Mr Divyesh Shah - CEO Mr Vijay Babbar DMD

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Indiabulls supports Money life Foundation in Empowering Investors Moneylife Foundation in collaboration with Indiabulls, recently organized an Investor, Empower Yourself seminar, which was held at the lush Town & Country Club at New Gurgaon, in the National Capital Region (NCR), on Saturday, 7th May 2011. This was the first occasion for Moneylife Foundation to venture into other territories outside Maharashtra. Indiabulls played a major role in helping this event happen successfully. The event witnessed over 300 attendees not only from Gurgaon but also from other parts of National Capital Region (NCR), Delhi, Allahabad, Ludhiana, Chandigarh & other cities from northern region of India. The venue was fully packed with eager & curious investors. Moneylife Foundation expressed its gratitude towards helpful team of Indiabulls led by Mr. Gagan Banga, CEO - Indiabulls Financial Services Ltd, for making this event such a huge success. The event started with introductory remarks & guidance by Mr. Gagan Banga, CEO - Indiabulls Financial Services Ltd. Mr. Veeresh Malik, Consulting Editor, Money life, Delhi gave a brief introduction about Money life Foundation.Then audience was guided by Sucheta Dalai, Trustee - Money life Foundation and Managing EditorMoney life, on How to be Safe with your money & Debashis Basu, Trustee - Money life Foundation and Editor- Money life about How to be smart with your investments. Mr. Sachin Choudhary, Director & Business Head - Indiabulls Housing Finance Ltd, talked about Do's and Donts of Housing Mortgages. Ms. Sucheta Dalal also explained the importance & procedure of Wills & Nominations. This event helped people in understanding how to become an aware and empowered investor. The attendees included both finically literate & new investors. They posted number of intelligent questions which were adequately answered by all the speakers. Empowering todays investors by creating awareness and guiding them in taking wise decisions when it comes to money or investments was the main objective of Investor, Empower Yourself seminar. During the Panel Discussion with the panel members Sucheta Dalal, Debashis Basu & Sachin Choudhary, quite a few interesting & informative issues regarding Investments were discussed. Mr. Monu Ratra, National Sales Manager - Indiabulls housing Finance Ltd gave Vote of Thanks. 80

This event received many request and suggestions from audience about continuing with such events all over India so that citizens of India will be more empowered investors & ultimately nation will benefit from it. There were some requests from audience to telecast further events live on television & internet so that those who are unable to attend the event will also get the guidance. The knowledge shared about the investments during the event was well appreciated by all. Moneylife Foundation has been instrumental in promoting financial literacy & pro-customer advocacy in India. Moneylife Foundation has been organizing such events at the Moneylife Knowledge Centre in Mumbai, and also in various cities across Maharashtra. The Foundation has completed 15 months of spreading financial literacy & has hosted around 49 speakers and 61 events. Currently, more than 5,000 people are members of the Foundation. After the seminar, Indiabulls received feedbacks from some attendees congratulating Indiabulls team about the success of seminar. Many of the attendees mentioned that they are looking forward to such seminars in future. Indiabulls has been participating in such Corporate Social Activities with many other socially aware groups and trusts & Indiabulls is committed to continue in doing so in future. THE HUB The Hub at One Indiabulls Centre at Lower Parel is an intelligently designed business centre in Mumbai. In the past few years serviced office industry has been maturing in India and today is a mainstream occupancy option for businesses of all sizes. Whether a start-up, SME or a multi-national, companies are now opting for viable alternative to leasing or the outright purchase of commercial workspace. Thus managed business centers have emerged as an innovative solution to these workspace requirements. The Hub at One Indiabulls Centre at Lower Parel is one such intelligently designed business centre in Mumbai that offers 25,000sqft of fully 80

equipped, serviced workspace not only suitable for large corporations but also for small businesses and lean team set ups due to the option of small customized spaces. The real advantage of The Hub is not just that it is more cost effective but also it offers best possible working environment by offering conveniences such as advanced security, pantry and maintenance services including IT and utility bills for electricity, water & HVAC. Whats more, those moving into The Hub serviced offices enjoy the added benefit of cutting edge IT and telecom infrastructure, reception and secretarial support, hi-tech meeting rooms and video conferencing suites as well as business lounge, food courts and state of the art fitness centre. Not to forget among various factors that can affect a business and its success and growth, is the address or the location of the office especially those of newly established enterprises. The Hub within a world class contemporary business complex located between Nariman Point and Bandra Kurla Complex and in close proximity to Bandra Worli Sea Link is undeniably in the finest commercial location in Mumbais upcoming central business district- Lower Parel. Undeniably, The Hub is a new age business centre that provides a very attractive proposition to businesses of all sizes to help their own business grow and prosper. Indiabulls CSR Initiative - Drug Access Program for cancer patients in partnership with Novartis As part of our deep commitment to social causes, Indiabulls has taken up this noble project named Novartis Oncology Access in partnership with Novartis (manufacturer of drugs) & Max foundation (NGO). We as the financial partner are helping them assess actual income of patient & family & based on assessed income; recommend the drugs donation slab as per approved guidelines & SOP.

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Novartis are the developers & makers of Glivec (Imatinib) - a medication for the treatment of Ph+ chronic myeloid leukemia (CML) in chronic phase, accelerated phase and blast crisis for both pediatric and adult patients. This drug is also indicated for adult patients with adjuvant, unresectable and/or metastatic c-kit / cd-117 gastrointestinal stromal tumors (GIST). Tasigna (nicotinic) a drug recently launched by Novartis is used as medication for the treatment of Ph+ chronic myeloid leukemia (CML) in chronic phase, accelerated phase and blast crisis for only adult patients. NOA program: The NOA program is a drug access program for to help patients who have been prescribed Glivec and Tasigna but cannot afford to pay for the entire treatment cost. This program is run by Novartis along with its partner Physicians- enrolls patient under this program after diagnosis, The MAX Foundation- independent NGO Assist patient throughout the program in completing formalities & procurement of medicines, Indiabulls Financial Services - independent body for financial evaluation of patient, collection & safekeeping the submitted documents with confidentiality and C&F outlets Independent pharmacist, dispenses drugs to patients & manage drug inventory. Indiabulls Financial Services: As a NOA partner we are performing task of the local credit evaluation agency which works as an independent and unbiased body for the financial analysis and assessment of the patient and family members earning capacity to afford medical expenses on critical disease. The analysis bases on income levels assessment by way of financial evaluation, field verification, living standard, personal discussion with patient/ care taker & guidelines as per standard operating procedure (SOP) which is prepared by Novartis based on the WHO guidelines for drug donation programs using Business for Social Responsibilitys (BSR) cost of living index, a wellestablished international guide often used as eligibility criteria for determining access to drug assistance programs. Based on the family composite Income a suitable donation decision is given.

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Contractibility Indiabulls has designated a dedicated Help-Line Number: 022 30491720 that will receive patient calls during office hours (9:00 a.m. to 6.00 p.m.) so it may handle in-bound calls in response only to queries regarding the submission of requirements for the NOA. For any medical or clinical queries, Indiabulls Financial Services refer patients to their treating physician. Businesses Indiabulls Group is one of the country's leading business houses with business interests in Power, Financial Services, Real Estate and Infrastructure. India bulls Group companies are listed in Indian and overseas financial markets. The Net worth of the Group is Rs 16,796 Crore and the total planned capital expenditure of the Group by 2013-14 is Rs 35,000 Crore. Indiabulls Power is currently developing Thermal Power Projects with an aggregate capacity of 5400 MW. The first unit is expected to go on stream in May 2012. The net worth of Indiabulls Power is Rs 3,917 Crore. The company has a total capital expenditure of Rs 27,500 Crore. The company has been assigned 'BBB' rating. Indiabulls Financial Services is one of Indias leading non-banking finance companies providing Home Loans, Commercial Vehicle Loans and Secured SME Loans. The company has a net worth of Rs 4,680 crore with an asset book of over Rs 18,500 Crore. The company has disbursed loans over Rs 45,000 Crore to over 3, 00,000 customers till date. Amongst its financial services and banking peers, Indiabulls Financial Services ranks amongst the top few companies both in terms of net worth and capital adequacy. Indiabulls Financial Services has been assigned AA+ rating and has presence in over 90 cities and towns with a total branch network of 140 branches. Indiabulls Real Estate is among India's top Real Estate companies with development projects spread across residential complexes, integrated townships, commercial office complexes, hotels, malls, Special Economic Zones (SEZs) and infrastructure development. Indiabulls Real Estate partnered with Farallon Capital Management LLC of USA to bring the first FDI into real estate in the country. The company has a net worth of Rs 7,953 Crore and has purchased prime land, mostly in 80

the metros and other Tier 1 cities worth Rs 4,000 Crore in government auctions alone. Indiabulls Real Estate is currently developing 57 million sqft into premium quality, high-end commercial, residential and retail spaces. The company has been assigned 'A+' rating. Indiabulls Securities is one of India's leading capital markets companies providing securities broking and advisory services. Indiabulls Securities also provides depository services, equity research services and IPO distribution to its clients and offers commodities trading through a separate company. These services are provided both through on-line and off-line distribution channels. Indiabulls Securities is a pioneer of on-line securities trading in India. Indiabulls Securities in-house trading platform is one of the fastest and most efficient trading platforms in the country. Indiabulls Securities has been assigned the highest rating BQ-1 by CRISIL. Indiabulls foundation India has witnessed an economic transformation over the past two decades, translating into higher incomes, better educational opportunities, improved infrastructure, a dynamic private sector, and leadership in the global community. We have much to be proud of. But we also recognize that we have a long way to go. Over 700 million people live under $2 a day. Learning levels in schools remain abysmally low; most of our rural populations do not have access to basic health care, regular electricity, clean water, and sanitation. India has some of the worlds worst statistics on basic development indicators such as malnutrition, infant mortality, and gender discrimination. As a society, we are at the confluence of accelerated economic progress and extreme deprivation, all in the same country, at the same time.

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As corporate citizens, we at Indiabulls are conscious of the opportunities and the responsibility that this confluence presents. Investments to increase income levels of our poorest people will expand business opportunities manifold. Investments to improve education, health and skills training will improve the efficiency of the economy. Protecting our environment will actually lower our costs of doing business. Providing our youth with gainful employment and a chance to improve their lives will ensure societal and political stability- setting a strong foundation for economic sustainability. All of these investments will help create an inclusive society, ensuring a sustainable return to our shareholders. The Indiabulls Group is keen to help in building an inclusive and prosperous society and we are beginning our efforts in this direction through Indiabulls Foundation. One of the first initiatives of the Foundation is to support the development of rural districts. Our aim is to support development across multiple domains in a district based approach. Some of the areas where we want to help are in economic development and skills training, access to drinking water, school education, public health, agriculture and support to the local government. Commercial Vehicle Loans Indiabulls Commercial Vehicle Loans offers commercial auto loans to a variety of business owners. We are a preferred financer with first time buyers as well as fleet operators providing commercial vehicle loans with simple documentation and quick results. The Commercial Vehicle Finance provided by us helps the small and medium operators to acquire vehicles with minimum hassle and documentation. We provide customized financing options to suit your needs. Our strength lies in the quick completion of transactions, long association with transporters and the intimate knowledge of the market and its nuances. Our finance schemes are easy to understand with no hidden costs. 80

We assure you a quick, transparent and hassle-free deal. 1. Product Offering

Finance for new commercial vehicles Finance for used vehicles Tractor Loans

2. Proposed Finance

Tyre Funding Accidental Funding Engine Funding Take over loans Top up loan on existing loan with us

3. Features of Loan Offering

Loan for up to 15 years old vehicles. The best loan offering in the market up to 95% for used vehicles & 100% for new commercial vehicle chassis Max tenure of up to 48 months for used vehicles 60 months for new commercial vehicle chassis Max tenure of up to 48 months for used vehicles 60 months for new commercial vehicle chassis Customized loan to suit your needs Door Step Services Easy Documentation Quick & Hassle free services Attractive Rate of Interest No intermediary or Direct Marketing Agent for loan processing

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Senior Vice President

Regional Manager

Branch Manager Senior Sales Manager

Support System

Sales Function

Back Office Executive

Local Compliance Officer

RM/SRM

ARM

Dealer

Organization Structure- Board of Directors:

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Trading Products of Indiabulls Securities

India bulls Securities Trading Products

Cash Account

Intraday Account

Margin Trading

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India bulls Securities provide three products for trading. They are Cash Account Intraday Account Margin Trading (Mantra) Cash Account: It provides the client to buy 4 times of cash balance in his trading account. Intraday Product: It provides the client to buy 8 times of his cash balance in the trading account. Mantra Account: Also called as margin trading, is a special account to buy on leverage for a longer duration India bulls Financial Services Ltd India bulls Financial Services Ltd. was incorporated in the year 2005.The Auditors of Indiabulls Financial Services Ltd. are Deloitte, Haskins & Sells. The main activity of this company is in relation to securities and stock brokerage. It was also responsible for setting up one of Indias first trading platforms. The subsidiaries of Indiabulls Financial Services Ltd. include: Indiabulls Capital Services Ltd. Indiabulls Commodities Pvt. Ltd. Indiabulls Credit Services Ltd. Indiabulls Finance Co. Pvt. Ltd Indiabulls Housing Finance Ltd. Indiabulls Insurance Advisors Pvt. Ltd. Indiabulls Resources Ltd. Indiabulls Securities Ltd.

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The Bankers of India bulls Financial Services Ltd. are as follows: ABN-Amor Bank Andhra Bank Bank of Maharashtra Bank of Rajasthan Ltd. Canara Bank Centurion Bank of Punjab Ltd. Citibank Corporation Bank Dena Bank HDFC Bank Ltd HSBC Ltd. ICICI Bank Ltd. IDBI Ltd Industrial Bank Ltd. ING Vysya Bank Ltd Karnataka Bank Punjab National Bank State Bank Of India Syndicate Bank Union Bank Of India UTI Bank Ltd.

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DATA ANALYSIS AND INTERPRETATION

1. What is your Age? No. of Respondents 14 54 22 10 Percentage (%) 14 54 22 10 Type of Respondents (in years) Below 25 25-35 35-50 50 and above

DATA INTERPRETATION: The chart shows that 54 % of respondents that means the maximum number of investors ages are in between 25 to 35, 22% of investors ages in between 35 to 50, 14% of respondents age is below 25 and 10% of respondents age is in between 25-35.

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Graph: 1
60 50 40 30 20 10 0 Below 25 25-35 35-50 50 and above
No. of respondents Percentage (%)

INTERPRETATION: The above table shows that 27 respondents that means the maximum no. of investors ages are in between 25 to 35 and 11 respondents of investors age is in between 35 to 50, 7 respondents age is below 25 and 5 respondents age is 50 and above. It shows the age categories of respondents and percentage of each category.

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2.

What is your Occupation? No. of Respondents 46 54 0 0 Percentage (%) 46 54 0 0

Occupation of Respondents Business Salaried Honorioum basis Others

DATA INTERPRETATION: The above table shows that 27 respondents occupation is salaried based employees and rest of them are doing business no one is there in remaining two types of respondents. This table shows the type of occupation of respondents and percentages of different types of respondents.

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Graph: 2

60 50 40 30 20 10 0

No. of respondents Percentage (%)

INTERPRETATION: The chart that 54% of respondents occupation is salaried based employees and rest of them are doing business no one is there in remaining two types of respondents.

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3.

What are your Educational Qualifications? No. of Respondents 4 32 64 0 Percentage 4 32 64 0

Type of Respondents Inter and below Degree P.G PhD DATA INTERPRETAION:

The above table shows that 32 investors are post

Graduates, 16 investors of them and 2 investors qualification is inter and below. The table shows the types of educational qualifications of respondents and percentages of different types of respondents.

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Graph: 3
70 60 50 40 30 20 10 0 Inter and below Degree P.G PhD
No. of respondents Percentage

INTERPRETATION: The Chart shows that 64% of investors are post graduates, 32% of them are graduates, 4% of them qualifications are inter and below.

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4.

What is your Monthly Income? No. of Respondents 26 40 28 6 Percentage 26 40 28 6

Monthly Income 20000 and below 20000 to 30000 30000 - 40000 40000 and above

DATA INTERPRETATION: The above table shows that 20 of the respondents monthly income are between 20,000 to 30,000, 14 of them income is between 30,000 to 40,000, 13 of investors monthly income is 20,000 and below and rest of them income is 4000.

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Graph: 4

45 40 35 30 25 20 No. of respondents 15 10 Percentage 5 0 20000and20000 below to 30000 30000-40000 40000and above

This chart shows monthly income of respondents and percentages of different types of respondents. INTERPRETATION: The above chart shows that 40% of the respondents monthly income is between 20000 to 30000, 28% of them income is between 30000 to 40000, 26% of investors monthly income is 20000 and below and rest of them income is above 40000.

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5.

Number of Dependents? No. of Respondents 22 24 28 26 Percentage 22 24 28 26

Type of Investment 3 and below 4 5 and above No dependents DATA INTERPRETATION:

The above table shows 14 of respondents having five and above dependents, 13 of them having no dependents, 12 of them having four dependents and rest of them having three and below dependents. This chart shows no.of dependents of respondents and percentages of different types of respondents.

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Graph: 5

INTERPRETATION:

The above chart shows 28% of respondents having five and

above dependents, 26% of them having no dependendents, 24% of them having four dependents and rest of them having three and below dependents.

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6.

In which investment avenue have you invested? No. of Respondents 44 12 24 20 Percentage 44 12 24 20

Type of Respondents Equity Debt instruments Insurances others

DATA INTERPRETATION: The above table shows denoting that investors are giving priority to investment in equity funds 22 followed by insurance, 12 and debt instruments them are preferring insurance. This chart shows no. of dependents of respondents and percentages of different types of respondents.

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Graph: 6

50 45 40 35 30 25 20 15 10 5 0

No. of respondents Percentage

DATA INTERPRETATION:

The above chart denoting that investors giving most

preference to equity i.e. 44%, 12% of them debt instruments apart from these 24% of them are preferring insurance, 78% of them prefer others.

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7.

Which type of stock have you invested in? No. of Respondents 16 28 24 20 Percentage 16 28 24 20

Preferred Stock of Respondents Speculative Stocks Blue chip Stocks Growth Stocks Income Stocks

DATA INTERPRETATION: The above table shows that reveal that 08 respondents re preferring speculative stocks, 14 of the investors preferring blue chip stocks, 12 of them preferring growth stock and rest them preferring income stocks. This chart shows preferred stock of respondents and percentages of different types of respondents.

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Graph: 7
30 25 20 15 10 5 0
Percentage No. of respondents

INTERPRETATION: The above chart reveals that 16% of them preferring speculative stocks,28% of the investors preferring blue chip stocks , 24% of them preferring growth stocks and 20% of them preferring income stocks.

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8. Which statement best describes you approach as an investor? a) I am cautious about taking risks and I want to avoid losses. b) I am somewhat caution about taking risks, and I can handle relatively small losses. c) I can take some risk that is generally associated with greater account growth potential but I wish to minimize short term losses in my account. d) I am open to taking risk for growth potential. I am less concerned about short term losses or gains; I am more invested in long term growth. TABLE 8 This table shows preferred rate of risk of respondents and percentages of different types of respondents. Type of Preferred Rate of Risk a b c d e No. of Respondents 14 26 40 18 4 Percentage 14 26 40 18 4

DATA INTERPRETATION: The above table revealing that 16%of the investors are taking moderate risk and they are also not ready to face short term losses and rest of them are expecting either short term or long term returns. This chart shows preferred rate of risk of respondents and percentages of different types of respondents.

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Graph: 8
40 35 30 25 20 15 10 5 0 No .of respondents Percentage a b c d e

INTERPRETATION: The above table revealing that 16% of the investors are taking moderate risk and they are also not ready to face short term losses and rest of them are expecting either short term or long term returns.

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9.

When is your next big spending due/ expected? No. of Respondents 46 32 10 12 Percentage 46 32 10 12

Type of Respondents Less than 1 year 1-3 years 3-5 years More than 5 years DATA INTERPRETAION: The

above table shows 23 of the respondents are

expecting their next big spending due/expected will be less than one year, 16 of them expecting it will be between 1-3 years , 05 of them expecting between 2-3 years and 06 of them are expecting more than 5 years expenditure. This charts shows next big spending due/ expected of respondents and percentages of different types of respondents.

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Graph: 9
No. of respondents Percentage

50 40 30 20 10 0 Less than 1 year 1-3 years 3-5 years More than 5 years

INTERPRETATION : The 46% of the respondents are expecting their next big spending due/expected will be less than one year, 32% of them expecting it will be between 1-3 years , 10% of them expecting between 3-5 years and 12% of them are expecting more than 5 years expenditure.

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10.

Do you have an emergency fund set aside to meet any unexpected requirement? No. of Dependents 8 20 32 36 Percentage 8 20 32 36

Type of Respondents No 1 months Expenses 2-3 months Expenses More than 6 Months

DATA INTERPRETATION: The above table shows that 18 of the respondents are having emergency fund to meet above six months expenses, 16 of them having emergency fund to meet 2-3 moths 10 expenses of them having one month expenses and remaining of them are not having any emergency fund. This chart shows an emergency fund set of respondents and percentages of different types of respondents.

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Graph: 10
40 35 30 25 20 15 10 5 0 No. of dependents Percentage No 1 months expenses 2-3 months expenses More than 6 months

INTERPRETATION: The above chart showing that 36% of the respondents are having emergency fund to meet above 6 months expenses, 32% of them having emergency fund to meet 3-5 years, 20% of them having 1 months expenses and remaining of them are not having any emergency fund.

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11.

If you receive an unexpected bonus equaling to 3 months salary, will you______________? Type of Respondents No. of Respondents 40 22 20 18 Percentage 40 22 20 18

Bank Deposit Instruments Shares Personal Use

DATA INTERPRETATION: The above table denoting that 20 of respondents prefer a bank deposit at 5% of guaranteed returns, 11 of them are preferring instruments and 10 of them are interested to invest in shares. This chart shows choice of investment of respondents and percentages of different types of respondents.

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Graph: 11
45 40 35 30 25 20 15 10 5 0

No. of respondents Percentage

INTERPRETATION:

The chart denoting that 40% of respondents prefer a bank

deposit at 5% of guaranteed return, 22% of them are preferring instruments and 20% of them are interested to invest in shares.

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12.

How often do you monitor your investments? No. of Respondents 28 32 12 28 28 32 12 28 Percentage

Type of Respondents Daily or weekly Monthly Yearly Occasionally

DATA INTERPRETATION: The above table shows that 16 of them monitor their investment monthly, 14 of the respondents monitor their investments occasionally and 14 of them monitor daily or weekly and 6 of them monitor their investments yearly. This table shows how often respondents monitor their investments and their percentages.

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Graph: 12

35 30 25 20 15 10 5 0

No. of respondents Percentage

INTERPRETATION: The 32% of them monitor their investments monthly, 28% of the respondents monitor their investments occasionally and 28% of them monitor daily or weekly and 12% of them monitor their investments yearly.

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13.

When you made an investment decision, you____? No. of Respondents 8 18 58 16 Percentage 8 18 58 16

Type of Respondents Decide on gut feel Advice from well wishers Rely on investment advisor Analyzes all options thoroughly.

DATA INTERPRETATION : The above table shows that 08 of the respondents are taking decision by analyzing all the option thoroughly, 29 of them are taking the advises from the investment adviser, 9 of them taking advise from well wishers and 4 of them are taking decision on gut feel. This chart shows how the respondents made investment decision and percentages of different types of respondents.

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Graph: 13
70 60 50 40 30 20 10 0 Rely on investment advisor Advice from well wishers Analyzes all options thoroughly. Decide on gut feel

No. of respondents Percentage

INTERPRETATION: The above chart showing that 60% of the respondents are taking decision by analyzing all the options thoroughly, 58% of them are taking the advices from the investment advisor, 18% of them taking advice from well wishers and 8% of them are taking decision on gut feel.

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14.

Investments with higher short term volatility are more likely to have a greater chance are more likely to have a greater chance of meeting long term goals. Conversely, investments likely to provide stable returns and minimum short term losses are likely to meet long term investment goals with this mind, which of the following is most consistent with your investments attitude?

Type of Respondents Short term goals Both Long term goals No one DATA INTERPRETATION:

No. of Respondents 18 46 24 12

Percentage 18 46 24 12

The above table shows that 9 of respondent are

equally concerned about avoiding short term losses as well as meeting long term goals and rest of them are expecting long term profits by either avoiding short term losses or bearing losses. This chart shows type of goals of respondents and percentages of different types of respondents.

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Graph: 14
50 45 40 35 30 25 20 15 10 5 0 Short term goals Both Long term No one goals

No. of respondents Percentage

INTERPRETATION: The 18% of respondents are equally concerned about avoiding short term losses as well as meeting long term goals and rest of them are expecting long term profits by either avoiding short term losses or bearing losses.

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15.

The chart below shows possible growth of Rs 100 over a five year period for a series of different investment strategies which of the five scenarios are you most comfortable with as investor?

Type of Respondents 130 to 160 110 to 176 90 to 200 77 to 250

No. of Respondents 22 36 28 14

Percentage 22 36 28 14

DATA INTERPRETATION: The above table shows that 18 of the respondents are comfortable with 110 to 176, 14 of them are comfortable with 90 to 200, 11 of them are comfortable with 130 to 160 and rest of them comfortable with 77 to 250. This chart shows risk preferences of respondents and percentages of different types of respondents.

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Graph: 15
40 35 30 25 20 15 10 5 0 130 to 160 110 to 176 90 to 200 77 to 250

No. of respondents Percentage

DATA INTERPRETATION: The 36% of the respondents are comfortable with 110 to 176, 28% of them are comfortable with90 to 200, 22% of them are comfortable with 130 to 160 and rests of them are comfortable with 77 to 250

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16.

What percentage your portfolio is allocated to equity currently? No. of Respondents 4 40 36 20 Percentage 4 40 36 20

Type of Respondents No investment in equity Up to 10% Between 10-30% Between 30-60%

DATA INTERPRETATION: The above table denoting that 20 of the respondents allocated up to 18 of them are allocates This chart shows what percentage of respondents portfolio is allocated to equity and percentages of different types of respondents.

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Graph: 16
45 40 35 30 25 20 15 10 5 0 No investment in equity Between 10-30%

No. of respondents Percentage

DATA INTERPRETATION: The chart denoting that 40% of the respondents are allocated up to 10% of their portfolio to equity, 36% of them are allocated up to 10 to 30% of their portfolio , 20% of them are allocated to equity between 30 to 60% of their portfolio and rest of them not invested in equity.

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FINDINGS
The study shows that most of the investors lies in moderate risk preferred. The study shows that investors demographics lies in moderate category. The highest number of investors who operate stock market preferred to invest in Equities because of early profits. Investors utilizing the company brokers report & financial reports as their data source to invest in Equities. Investors are investing in booming sectors like I.T. Investors are investing in real-estate business also. The more number of investors who operate stock market preferred to invest in equity because of more risk and simultaneously returns also there.

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SUGGESTIONS
This is strongly recommended that the investor should have a proper guidance of well experienced Broker. The investor also should have the knowledge of analyzing financial position of company in which he wants to invest. The SEBI has to provide some tax benefits in order to attract investments in Equities. The investor also must be getting some knowledge for other sources.

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CONCLUSION
The study and analysis of the report deals with the different investment decisions made by different people. It explains about the investor preference towards Equities and their risk preferences. It explains the trading mode utilized by the people, preferable investment time, preferable data source and category of investment to invest in different market of the Equities.

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QUESTIONNAIRE NAME: _______________. 1. What is your age? a) Below 25 a) Business a) Inter and Below A) 20000 and Below a) 3 and Below a) Equity Shares b) 25 35 b) Salaried b) Degree b) 20000b-b30000 b) 4 c) 35 50 c) Honourium Basis c) P.G. c) 30000b-b40000 d) 50 and above [ ] d) Others [ ] d) PhD [ ] d) Above 40000 [ ] c) 5 and Above d) No Dependents. [ ] d) Others. [ ] d) Income Stocks [ ] 2. What is your occupation? 3. Educational qualifications? 4. Monthly income ____? 5. Number of dependents____? 6. In which investment avenue have you invested___? b) Debt Instruments c) Insurance 7. Which type of stock have you invested in? a) Speculative Stocks b) Blue Chip Stocks c) Growth Stocks 8. Which statement best describes you approach as an investor? a) I am cautious about taking risks and I want to avoid losses. b) I am somewhat caution about taking risks, and I can handle relatively can handle relatively small losses. c) I can take some risk that is generally associated with greater account growth potential but I wish to minimize short term losses in my account. d) I am open to taking risk for growth potential. I am less concerned about short term (less than one year) losses or gains; I am more invested in long term growth. 9. When is your next big spending due / expected? a) Less than 1 Year c) Between 3 - 5 Years b) Between 1 - 3 Years d) More than 5 Years. [ ] [ ]

10. Do you have an emergency fund set aside to meet any unexpected requirement? [ ] a) No, I dont have any money for emergencies b) I have enough to meet one months expenses. c) I have enough to meet 2-3 months expenses. d) I have enough to meet more than 6 months expenses.

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11. Your receive an unexpected bonus equaling to 3 months salary, will you__ a) Put it in a bank deposit at 5% guaranteed return? b) Invest in an instrument which gives a return is arrange of 4-7%. c) Of around 15% p.a with a downside three risk of 10%. d) Asset for personal use. 12. How often do you monitor your investments? a) Daily or Weekly a) Decide on gut feel. b) Seek advice from friends and well wishes. c) Rely on your investment advisor. d) Analyzes all options thoroughly. b) Monthly c) Yearly d) Occasionally 13. When you made an investment decision, you ______?

[ ]

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14. Investments with higher short-term volatility are more likely to have a greater chance are more likely to have a greater chance of meeting long term goals. Conversely, investments likely to provides stable returns and minimum short term losses are likely to meet long term investment goals with this is mind , which of the following is most consistent with your investments attitude. [ ] a) Avoiding short-term losses is more important to me than meeting long term goals. b) I am equally concerned about avoiding short term losses as well as meeting long term goals. c) I am willing to bear short term fluctuations to maximize the chance of meeting my long term goals. d) I am equally concerned about maximizing the short term profits and long term goals. 15. the chart below shows possible growth of Rs 100 over a five yea period for a series of different investment strategies which of the five scenarios are you most comfortable with as investor? a) 130 to 160. b) 110 to 176. c) 90 to 200. b) Up to10%. d) Between 30 to 60%. d) 77 to 250. [ ] 16. What percentage your portfolio is allocated to equity currently? a) No Investment in Equity. c) Between 10 to 30%. [ ]

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BIBLIOGRAPHY
Books Referred: Security Analysis and Portfolio Management _ Donald E. Fischar and Ronald J.Jordan. Capital Market Institutions & Instruments _Frank J. Franco M. Gliani Financial Services _ M.Y.KHAN Search Engines: www.google.com www.sagejournal.com Web Sites: www.indiabulls.com Www. Moneypore.com www.forex.com www.nsbl.com Newspapers Magazines

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