ORIGIN OF SHARE MARKETS IN INDIA

The origin of stock market in India goes back to the end of the 18 th century when long term negotiable securities where first issued. However, for all practical purposes, the real beginning occurred in the middle of the 19 th century after the enactment of the companys act in 1850, which introduced the feature of limited liability and generated investor interest in corporate securities. An important early event in the development of the stock market in India was the formation of the Native Share and Stock Brokers association at Bombay in 1875, the precursor of the present day Bombay Stock Exchange. This was followed by the formation of associations/exchanges in Ahamedabad (1894), Calcutta (1908), and Madras (1937). In addition, a large number of ephemeral exchanges emerged mainly in buoyant periods to recede into oblivion during depressing times subsequently. Presently the recognized stock exchanges in India have one of the following organizational forms; Voluntary non- profit making association Public limited company and Company limited by guarantee A governing body consisting of elected and nominated members manages recognized stock exchanges. Stock exchanges are required to appoint an executive director with substantial powers to be the chief operating executive. Securities and Exchange Board of India (SEBI) Before the establishment of Securities and Exchange Board of India (SEBI) in 1989 by the administrative fiat of the ministry of finance, the principal legislations governing the securities markets in India were the capital issues control act, 1956(governing the primary markets) and the securities contract regulations act, 1956(governing the secondary markets). The regulatory powers were vested with controller of capital issues (for the primary market) and the stock exchange division (for the secondary market) in the ministry of Finance Government of India.

SEBIs principal tasks are to Regulate the business in stock exchanges and other securities market. Register and regulate the working of capital market intermediaries (brokers, merchant bankers, portfolio managers, and so on). Register and regulate the working of mutual funds. Promote and regulate self-regulatory organizations. Prohibit fraudulent and unfair trade practices in securities markets. Promote investors education and training of intermediaries of securities markets. Prohibit insider trading in securities. Regulate substantial acquisition of shares and takeovers of companies. NSE Inaugurated in 1994, the National Stock Exchange (a) establish a national-wide trading facility for equities, debt and hybrids (b) facilitate equal access to investors across the country(c) imparts fairness efficiency and transparency to securities (d) shorten settlement cycle and (e) meet international securities markets. The NSE has two segments: the capital market segment and the wholesale debt market segment. The capital market segment covers equities, convertible debentures, and retail trade in non-convertible debentures. The wholesale debt market segment is a market for high value transactions in G-sec, PSU Bonds, commercial papers and other debt instruments. BSE The Bombay Stock Exchange was established in 1875. It is one of the oldest organized exchanges in the world with a long, colorful, and checkered history. The BSE switched from the open outcry system to the screen based system in 1995. Jobbers play an important role in BSE. A jobber is a broker who trades in his own account and hence offers a two-way quote or a bid-ask quote. TRADING Each stock exchange has certain listed securities and permitted securities, which are traded on it. Members of the exchange are entitled to the trading privileges. Investors interested in buying and selling securities should place their orders with the members (also called brokers) of the exchange.

There are two ways of organizing the trading activity: the open outcry system and the screen based system. Open outcry System Screen Based System Open Outcry System Under this system, the traders shout and resort to signals on the trading floor of the exchange, which consists of several notional trading posts for different securities. A member wishing to buy or sell a certain security reaches the trading post when the security is traded. Buyers make their bids and sellers make their offers and bargains are closed at mutually agreed- upon prices. Screen Based System In the screen-based system, the computer screen replaces the trading ring and distant participants can trade with each other through the computer network. A large number of participants, geographically separated, can trade simultaneously at high speeds. The screen based trading system: Enhances the informational efficiency of the market as more participants trade at a faster speed Permits the market participants to get a full view of the market, which increases their confidence in the market and Establishes transparent audit trials. While computerized trading is more efficient, it decidedly lacks the vibrancy and vitality of the traditional floor trading. The kind of screen based trading system adopted in India is open electronic limit order book (ELOB) market system. The features of the system are Buyers and sellers place their orders on the computer. They can be limit orders (if price limits are mentioned) or best market price orders. The computer constantly tries to match mutually compatible orders on price and time priority. The limit order, i.e. the list of unmatched limit orders is displayed on the screen. Put differently, it is open for inspection to all traders.

SETTLEMENT Traditionally trades in India were settled by physical delivery. That is the securities had to physically move from the seller to the sellers broker, from the sellers broker to the buyers broker to the buyer. Further the buyer had to lodge the securities with the transfer agents of the company and the process of transfer took 1-3 months. This lead to high paper work cost and created bad paper risk. To mitigate this problem security transactions are settled through electronic delivery facilitated by depositories. A depository is an institution, which dematerializes physical certificates, and effects transfer of ownership by electronic book entries. To facilitate dematerialized trading in India the central government passed the Depositories Act, 1996. The National Securities Depository Limited (NSDL), Indias first depository, was set up in 1996 followed by the Central Securities Depositories Limited (CSDL). Securities and Exchange Board of India (SEBI) has made settlement of trades in dematerialized (DEMAT) form compulsory for all stock exchanges in the country. ROLLING SETTLEMENT Till recently share transactions I n India were settled on the basis of a weekly account period. This meant that purchases and sales during an account period could be squared up and at the end of the account period; transactions could be settled on a net basis. The weekly settlement system carried transactions from one account period to the next. So SEBI introduced the rolling system under which each day constitutes an account period and its trades are settled after T+2 days. INTERNET TRADING Now investors have the facility of opening an electronic trading account and buy and sell securities through the Internet.Karvy was the first company to launch online trading in 1999. The present major players in the industry are ICICIDirect.com, HDFCSEC.COM, and 5PAISE.COM, KOTAKSTREET.COM, INDIABULLS.COM. AngelTrade.com

Angel Broking Angel Broking's tryst with excellence in customer relations began in 1987. Today, Angel has emerged as one of the most respected Stock-Broking and Wealth Management Companies in India. With its unique retail-focused stock trading business model, Angel is committed to providing Real Value for Money to all its clients. The angel group is one of the largest & most prominent retail stock broking houses in india having trading facilities of Bombay & National stock exchange. The Angel group comprises of angel broking limited and Angel securities limited- Member of Bombay stock exchange and Angel Capital and debt market ltd-Member of National Stock Exchange. Angel is also registered as a depository participant with CDSL and also is registered with both the commodity exchanges, NCDEX & MCX. Understanding individual customer need with an urge to provide several investment products and tailor-made value added services to its clients,it focuses on the small and the midcap research which is considered a core activity and not merely a business accessory. The Angel group with its research strength acts as a catalyst in bringing ones errant portfolio on the right track by offering necessity advice The angel group guides and assists its clients in tackling all their queries and problems related to their investments.

Our Business
Equity Trading Commodities Portfolio Management Services Mutual Funds Life Insurance IPO Depository Services Investment Advisory

Angel Group

Angel Broking Ltd. Angel Commodities Broking Ltd. Angel Securities Ltd.

TRADING IN SHARES
Angelbroking.com offers us various options while trading in shares.

Cash Trading or Delivery based trading: - In cash or delivery based trading the investor gets a delivery of the shares or the money gets credited in to the SB account after T+2 days after the execution of the order.

Margin Trading: - The investor can do an intra settlement trading up to 3 to 4 times of the available funds, wherein they take long buy/short sell positions in stocks with the intention of squaring off the position within the same day settlement cycle. If the market is bearish, the investor also has the option to take delivery of the shares.

. BTST: - Buy Today Sell Tomorrow (BTST) is a facility that allows the investor to sell shares even on first and second day after the buy order date, without the investors having to wait for the receipt of shares into his Demat / SB account.

Call N Trade: - Call N Trade allows the investors to call on a local number in their own city and trade on the telephone through the companys customer service executives.

Trading on NSE/BSE: - Through angelbroking.com the investor can trade on NSE/BSE.

Market Order: - The investor could trade by placing market orders during market hours that allows the investor to trade at the best obtainable price in the market at the time of execution of the order.

Limit Order: - Allows the investor to place a buy/sell order at a price defined by the investor.

TRADE IN DERIVATIVES

FUTURES

Through angelbroking.com, the investor can now trade in index and stock futures on the NSE. In futures trading, the investor take buy/sell positions in index or stock contracts having a longer contract period of up to three months. Trading in FUTURES is simple. If, during the course of the contract life, the price moves in investors favour (i.e. rise in case the investor have a buy position or falls in case then investor have a sell position), the investor makes a profit.

OPTIONS

An option is a contract, which gives the buyer the right to buy or sell shares at a specific price on or before a specific date. For this the buyer has to pay the seller some money, which is called premium. There is no obligation on the buyer to complete the transaction if the price is not favorable to him.

To take the buy/sell position on index/stock option the investor has to place certain percentage of order value as margin. With option trading he can leverage on the trading limit by taking buy/sell positions much more than what he could have taken in cash segment.

The buyer of a call option has the right but not the obligation to purchase the underlying asset at the specified strike price by paying a premium whereas the seller of the call has the obligation of selling the asset at the specified strike price. The buyer of a put option has the right but not the obligation to purchase the underlying asset at the specified strike price by paying a premium whereas the seller of the call has the obligation of selling the asset at the specified strike price. By paying lesser amount of premium he can create positions under OPTIONS and take advantage of more trading opportunities.

Trading in Commodities
Commodities Derivative market has emerged as a new avenue for investors to create wealth. Today, Commodities have evolved as the next best option after stocks and bonds for diversifying the portfolio. Based on the fundamentals of demand and supply, Commodities form a separate asset class offering investors, arbitrageurs and speculators immense potential to earn returns.

Angel aims to harness the immense potential of the Commodities market by providing you a simple yet effective interface, research and knowledge.

The Angel Advantage

Angel provides user-friendly online platforms for commodity trading in the leading commodity exchanges.

Online Trading Three different online products tailored for traders & investors Single screen customized Market-Watch for MCX & NCDEX with BSE & NSE Streaming quotes

Top quality Research In house research on more than 25 commodities Highly skilled Analysts with professional industry experience Daily, Weekly and Monthly Research Reports

Pro-active Relationship Management Active advisory desk Efficient & nationwide network Seminars, workshops and investment camps for investors

Depository Services
Enjoy the dual benefits of trading and depository services under one roof and experience efficient, risk-free and prompt depository service. Angel is registered as a Depository Participant with CDSL. We are also a member of the Bombay Stock Exchange (BSE), National Stock Exchange (NSE) and the two leading Commodity Exchanges in the countryNCDEX & MCX.

Angel Advantage Automated pay-in facility Access information Anytime, Anywhere

 Quarterly demat statements with valuation Statements on demand View Demat A/C statement online Competitive transaction charges

Enjoy exclusive benefits by registering with us:

No risk of loss, wrong transfer, mutilation or theft of share certificates Hassle free automated pay-in of your sell obligation with no need for physical instruction Reduced paper work Speedy settlement process resulting in increased liquidity of your securities Instant disbursement of non-cash benefits like Bonus and Rights Efficient pledge mechanism Wide branch coverage Personalized services of trained Help desk No charges for extra Transaction statement and Holding statement

Combined PMS

monthly

'Bill-cum-Transaction-cum-Holding-cum-

Ledger' statement of your investments

Portfolio Management Service is a highly customized service offering a range of investment options best suited in the current market scenario. Angel offers professional Portfolio Management Service (PMS) to HNIs who seek customized solutions to realize their investment goals. Our Portfolio Managers are equipped to design an investment portfolio

across various investment avenues like Equities, Fixed Deposits, Bonds etc. in sync with your unique needs.

Approach to PMS Diversification of portfolio for containing non systematic risks in equity market. Active risk management Active review and rebalancing Expert management Best Retail Broking House and Broking House with the Largest Distribution Network award by DNB (2009) Strong risk management Experienced and strong fund management team Efficient and personalized client servicing No entry load on investment No lock in period for the investment. Flexibility to switch from one strategy to other(Charges applicable) Additional purchase facility Withdrawal facility for any amount above 500000/-.

Benefits at Angel Investment in companies that have a strong competitive advantage over their peers Well laid-out investment philosophy Pro-active management of funds Dedicated Relationship Manager Quarterly newsletter from fund management team

 Committed parentage Minimum Investment:Rs.5Lacs and Multiples of Rs 1 thereof Mode- Either Cheque payment or Stock Transfer or combination thereof.

Service Proposition Online-Access to Portfolio Login Id and Password Monthly fund performance and fund manager s views on e-mails Quarterly performance report statement in a new form CA certified Profit & Loss account and Balance Sheet of investments Dedicated fund coordinator for fund-related queries Centralized team of service coordinators for hassle-free servicing Event-based interaction with fund management team Servicing from large network of branches across India Currency Trading Overview The global increase in trade and foreign investments has led to interconnection of many national economies. This and the resulting fluctuations in exchange rates, has created a huge international market for Forex rendering investors another exciting avenue for trading. The Forex market offers unmatched potential for profitable trading in any market condition or any stage of the business cycle.

Indian Forex Market

In terms of daily turnover in 2010, India is the 16th largest market in the world. Indias market share in World FX Market increased from 0.1 % in 1998 to 0.9% in 2010. As per Latest RBI Data, Daily FX Indian Market volumes are $50 Billion in 2009. Indian Currency Futures Market Present Status

Currency Futures Trading was launched in India on 29th August, 2008 on NSE. NSE & MCXSX are the major 2 exchanges presently. United Stock Exchange of India is the upcoming exchange promoted by Bank of India, Federal Bank, MMTC & Jaypee Capital along with 9 other banks. The FX market in India is regulated by The Foreign Exchange Management Act, 1999 or FEMA, Presently Daily Turnover on both exchanges averages Rs. 35000 crores. Banks are active participants on the exchanges. NRIs & FIIs are not permitted to trade as of now. Currency markets offer investors a step into the world of Forex. The global increase in trade and foreign investments has led to interconnection of many national economies. This and the resulting fluctuations in exchange rates, has created a huge international market for Forex rendering investors another exciting avenue for trading. The Forex market offers unmatched potential for profitable trading in any market condition or any stage of the business cycle.

Benefits Low Commissions: Brokerage fees are very low as the market is highly competitive. No Middlemen : Futures/Options currency trading does away with the middleman and allows clients to interact directly on the exchange platform.

 Standardized Lot Size : In the futures markets, exchanges determine lot or contract sizes which are fixed in nature. This allows traders to trade in multiple lots. Low Transaction Cost : The retail transaction cost (the bid/ask spread) is typically less than 0.1% under normal market conditions. In large deals, the spread could be as low as 0.07%. High Liquidity : With an average trading volume of over $4 trillion per day, Forex market has high liquidity. It means that a trader can enter or exit the market at will in almost any market condition. Instant Transactions:This is a very advantageous by-product of high liquidity. Low Margin, High Leverage: These factors increase the potential for higher profits (and losses). Online Access: The big boom in Forex came with the advent of online trading platforms. Interbank Market: The backbone of the Forex market consists of a global network of dealers. They are mainly major commercial banks that communicate and trade with one another and with their clients through electronic networks and by telephone. There is no organized exchange to serve as a central location to facilitate transactions the way the New York Stock Exchange serves the equity markets. The Forex market operates in a manner similar to that of the NASDAQ market in the United States. Thus, it is also referred to as an over-the counter (OTC) market. Self-regulatory: The Forex market is so vast and has so many participants that no single entity, not even a Central Bank, can control the market price for an extended period. Even interventions by mighty Central Banks are becoming increasingly ineffectual and

short-lived. Thus, Central Banks are becoming less and less inclined to intervene and manipulate currency prices. No Insider Trading: Because of the Forex market's size and noncentralized nature, there is virtually no chance for ill effects caused by insider trading. Fraud possibilities, at least against the system as a whole, are significantly less than in any other financial instruments. Limited Regulation: There is limited governmental influence via regulation in the Forex markets, primarily because there is no centralized location or exchange.
INVESTING IN MUTUAL FUNDS

Investing in a Mutual fund is an excellent way of diversifying risk as well as portfolio. Angel presents its Mutual fund services that strive to meet all your mutual fund investment needs. We have a wide spectrum of investment schemes from all top mutual fund houses.

Angel also provides recommendations based on in-depth research, mutual fund performance and mutual fund ratings to help meet your investment goals.

The Angel Advantage Pan India presence Online and offline transaction facility Schemes from all major fund houses Latest MF News and Fund Manager views Latest New Fund Offers (NFO) Information and tools to help you select the right scheme Dedicated Customer Help desk 24x7 Web-enabled Client Back Office

Life Insurance
Ensure your familys well-being by securing their future with a life insurance policy. No financial planning is complete without life insurance. Angel offers an array of life insurance products like Term Plans, Endowment Plans, Money back Plans, Children Life Insurance Plans and ULIP Plans to meet your individual insurance requirements.

The Angel Advantage Low and affordable Premium with maximum life cover Assistance at your doorstep Tailor made plans to suit your financial needs Help desk for all your queries Hassle free and transparent dealings www.angelsecurelife.com

IPOS AND BONDS ONLINE The investor could also invest in Initial Public Offers (IPOs) and Bonds online without going through the hassles of filling ANY application form/ paperwork.

Online IPO provides clients the facility to conveniently apply for the various IPOs without any paper work. This electronic interface also allows online payment for IPO through 20 different banks. Get in-depth analysis of new IPOs issues (Initial Public Offerings), which are about to hit the market and analysis on these. IPO calendar, recent IPO listings, prospectus/offer documents, and IPO analysis are few of the features, which help you, keep on top of the IPO markets.

CONTENT FEATURES

There are a host of features on angelbroking.com that shall help to make informed investment decisions.

We provide us with the indices of major world markets nifty futures and ADR prices of Indian scrips. Get daily share prices of all scrips monthly and yearly high/lows etc through Market Watch.

Get breaking news from CNBC and Reuters. Catch a glimpse of News Headlines through the scrolling Direct News Headlines.

Get a snapshot of the latest developments in the markets through the day using Market Commentary.

Catch interviews reactions and comments from industry leaders with CEO call. Track the movement of leading scrip within a sector across 12 sectors using Market@desktop.

Direct Technical Charts offer interactive charting with advanced indicators. Get a birds eye view of over 5000 companies at a single click using Company Snapshot. Glance through analyst recommendations using Multex Global Estimates.