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Study of capital market

CERTIFICATE
I hereby certify that this project work entitled Study of capital markets submitted by Jagjot Singh to Mata Gujri College Fatehgarh Sahib Affiliated to Punjabi university Patiala, for the award of degree in Bachelor of Business Administration (BBA), is carried out under my guidance and supervision.

GUIDE Shivani Bector

Study of capital market

CERTIFICATE
I hereby certify that this project work entitled STUDY OF CAPITAL MARKET submitted by Jagjot Singh to Mata Gujri College Fatehgarh Sahib Affiliated to Punjabi university Patiala, for the award of degree in Bachelor of Business Administration (BBA), is carried out under my guidance and supervision.

GUIDE (Harsimran Singh)

Study of capital market

A PROJECT REPORT ON STUDY OF CAPITAL MARKET Submitted to Mata Gujri College Fatehgarh Sahib Affiliated to Punjabi university,Patiala. In partial fulfillment of degree of bachelor of business administration For the academic year 2008-2009 By: Jagjot Singh Univ. Roll. No. Under the guidance of Mrs. Shivani Bector.

Session (2008-2009)

Study of capital market

ACKNOWLEDGEMENT
Our personalities are based on the foundation of education imparted by our teachers who are next to god. I acknowledge our deepest sense of gratitude and sincere feeling of indebtedness to my major advisor, Mr. Harsimran Singh, under whose guidance I was able to complete my project. Without their immaculate and intellectual guidance, sustained efforts and encouraging attitude, it would have been difficult to achieve the results in such a short span of time. I am grateful to Mr. Naveen Bansal (Branch Manager) of Angel Broking, Chandigarh for permitting me to take the training at Angel Broking Ltd. I also want to express our sincere gratitude to all the staff members of Angel Broking for spending time and valuable information they have shared with me and helped me in my project to be a success. The acknowledgement would not be completed without expressing my thanks to the faculty of my college for showing me the right path and guided me to solve my problems. I extent my gratitude to our Director Mr. G.S Walia and all the related teachers. The help and cooperation they offered at each stage of my study is ineffable. Their valuable suggestions and constant encouragement made this study interesting and useful. I would also like to acknowledge the support I got from my parents and God. It was their blessing that kept me motivated throughout till the completion of the project.

Jagjot Singh

Study of capital market

STUDENT DECLARATION

I here by Declare that study of Study of Capita Market Has been exclusively done by us for the degree of BACHELOR OF BUSINESS ADMINISTRATION And not for any other degree, Diploma or fellowship. This is our own study done under the guidance of manager of the company. I hereby declare that the contents of this report are true and best to my knowledge.

Place: CHANDIGARH JAGJOT SINGH

Study of capital market

PREFACE
One should always work with an objective in its mind. To accomplish that objective efficient management of material, time and financial resources is very important. Above this coordination is must that determines the degree of success. Awareness at each level of life is necessary for a human being keeping all this is view in this report on Study of Capital Market. The rounded encouraging support by Mr. Harsimran Singh towards this report has created in me confidence regarding the approval of the subject matter. I feel that it was a great opportunity for me to spend time in Angel Broking and getting myself aware of the ups and downs of capital market. So would like to say that this report is a result of an assignment, to improve myself and gain confidence.

Study of capital market

CONTENTS
CHAPTER 1 INTRODUCTION TO ORGANISATION

Study of capital market

STOCK EXCHANGE
A STOCK EXCHANGE is a platform where buyers and sellers of securities issued by government, financial institutions, corporate houses, etc meet and

Study of capital market where the trading of these corporate securities takes place. This is a market of speculations. If the speculation of investor becomes wrong then the investor loses. Nobody knows what will happen even after a second. A stock exchange refers to that segment of the capital market where the securities issued by corporate entities are trade. It is an open auction market where buyers and sellers meet and evolve a competitive price for the securities. It reflects hopes, aspirations and fears of people regarding the performance of the economy. It provides necessary mobility to capital and directs the flow of capital into profitable and successful enterprises. Since buying and selling of different types of securities takes place in stock exchange. The prices of particular securities reflect their demand and supply. In fact, stock exchange is said to be a barometer of economic and financial health. The stock exchanges are the nerve center of capital market. The stock exchange discharges three essential functions in the process of capital formation not in raising resources for the corporate sector. It provides place for sale and purchase of securities i.e. shares, bonds etc. It provides linkages between the savings of household sector and investment in corporate sector or economy. It provides market quotation for share, debentures and bonds and serves as a role of barometer, not only of the state of health of individual companies, but also of the economy as a whole. Therefore, by providing market place quotations of the price of shares and bonds or sort of collective judgment. Simultaneously reached by many buyers and sellers in the market, the stock exchanges serve the role of barometer, not only of the state of health of individual companies but also of the nations economy as a whole.

Study of capital market

FEATURES OF STOCK EXCHANGE


It is the place where listed securities are bought and sold. It is an association of persons known as members. Trading in securities is allowed under rules and regulations of stock exchange. Membership is must for transacting business. Investors and speculators, who want to buy and sell securities, can do so through members of stock exchanges i.e. brokers.

FUNCTIONS OF STOCK EXCHANGE


The stock exchange provides appropriate conditions where purchase and sale of securities takes place at reasonable and fair prices. The bargained prices of buyers and sellers are recorded, on the basis of which each investor is able to

Study of capital market evaluate the securities held by him and thus knows the worth of his holdings at a particular time. The stock exchange provides a ready market for the conversion of existing securities into cash and vice versa. People having surplus funds invest in securities and these funds are securities and these funds are used for industrialized and economic development of the country that leads to capital formation. Stock exchange protects the investor of investors through strict enforcement of rules and regulations with respect of dealings. Punishment (including fine, suspension) may be there if brokers adopt any malpractice in dealing with investor like charging excessively high commission etc. The stock exchange acts as the center of providing business information relating to the enterprise whose securities are traded as the listed companies are to present their financial and other statements to it.

HISTORY OF STOCK EXCHANGE


The trading in securities in India was started in the early of 1973. The stock exchange operating in the 19th century was those of Bombay set up in 1875 and

Study of capital market Ahmedabad set up in 1894. These were organized as voluntary non-profit making associations of brokers to regulate and protect their interests. Before the control on securities trading becomes a control on securities trading became a central subject under the constitution in 1950. It was a state subject and the Bombay securities contact (control) act, 1925 used to regulate trading in securities. Under this act, Bombay stock exchange was securities in 1927 and Ahmadabad stock exchange in 1927 and Ahmadabad stock exchange in 1937. During the war boom, a number of stock exchanges were organized at Bombay, Ahmadabad and other centers but they were not recognized soon after it became a central subject, central legislation was proposed and a committee headed by sh. A.D. GORWALA went into bill for securities regulation. On the basis securities regulation. On the basis securities contracts (control) at became law in 1956. At present there are 23 recognized stock exchanges in India. Number of Investors is increasing day by day. The stock exchange is a double auction market. Quite distinct from the common market in which only one seller and many buyers in a stock exchange a number of potential buyers and potential sellers co-exist all competing both among themselves and with one another in making bids, counter-bids, offers and counter-offers.

WHO BENEFITS FROM STOCK EXCHANGE?


INVESTORS: It provides them liquidity, marketability, safety etc. of

Investment.

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COMPANIES: It provides them access to market funds, higher rating and

public interests.
BROKERS: They receive commission in lien of their services to investors. ECONOMY AND COUTRY: There is large of saving, better growth

moves industries, higher income.

LIST OF VARIOUS STOCK EXCHANGES IN INDIA


TABLE 1.1

Study of capital market S. No. 1 Name of stock exchange Bombay Stock exchange Years of Type of organization

establishment 1875 Voluntary organization Non-profit

Ahmadabad exchange

Stock 1897

Voluntary organization

Non-profit

3 4

Calcutta Stock exchange M.P. Indore Stock

1908

Public limited company Voluntary organization Non-profit

exchange, 1930

5 6

Madras Stock exchange Hyderabad exchange

1937

Co. limited by guarantee Co. limited by guarantee

Stock 1943

7 8

Delhi Stock exchange

1947

Public limited company Pvt. converted into

Bangalore Stock exchange 1957

public ltd. co. 9 10 Cochin stock exchange U.P. Kanpur 11 12 13 14 15 16 17 Pune Stock exchange Ludhiana Stock exchange Jaipur Stock exchange Guwahati Stock exchange Kannaar Stock exchange Magadha Stock exchange Bhuvneshwar 1982 1983 1983 1984 1985 1986 Co. limited by guarantee Public limited company Public limited company Public limited company Public limited company Co. limited by guarantee Co. limited by guarantee Stock 1978 Public limited company Public limited company

exchange, 1982

Stock 1989

Study of capital market exchange 18 Saurashtra exchange, Kutch. 19 20 21 Vadodra Stock exchange Meerut Stock exchange O.T.C.I. (Over exchange Mumbai 22 23 National Stock exchange Coimbatore exchange 24 Sikkim Stock exchange 1997 N.D. 1995 Pure demutualised N.D. the of counter India), 1990 1991 1993 N.D. N.D. Pure demutualised stock 1989 Co. limited by guarantee

tock 1996

Profile of NSE Introduction


The National Stock Exchange of India, or what popularly known as NSEI or NSE was set up in June 1994. It has shown impressive performance since its inception. The trading volume has been higher than BSE since November 1995. It has fully automated, electronic, screen-based trading system. It is sponsored by the IDBI and co-sponsored by other term-lending institutions, LIC, GIC, other insurance companies, commercial banks, and other financial institutions; viz., SBI Caps, SHCIL, and ILFs. Its objectives are: (a) To provide nation-wide equal access and fair, efficient, completely

Study of capital market transparent securities trading system to investors by using suitable communication network. (b)To provide shorter settlement cycles and book entry settlement system. (c) To bring the Indian stock market in line with international markets. (d)To promote the secondary market in debt instruments such as government and corporate bonds. It has two separate segments: (a) The Wholesale Debt Market Segment (WDMS), which caters to the bank, financial institutions, and other institutional participants, and which deals in PSU bonds, units, TBs, government securities, call money, CPs, CDs, etc. Everything is big in this segment; there are mega players, mega investors, and mega deals in it.

(b)The Capital Market Segment (CMS), which deals in equities, convertible debentures, etc. These include securities that are traded on other stock exchanges also. WDMS started functioning from 30th June 1994. Trading in CPs began on 16th August 1994. CMS began trading from 3rd November 1994. The NSEI introduced trading in repos with effect from 23rd June 1995. Recently the RBI has identified the NSEI as the only conduit for inter-bank security deals. The NSEI is an order driven and not a quote driven market, and it allows trading members to trade from their offices through a communication network. As said earlier, it has fully automated, screen-based ring less trading system. By the end of 1997, it has spread its business in 200 cities with more than 1,000 terminals. The firms whose shares are traded on it are traded on it are divided into two categories: Listed and Permitted.

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NSE Logo

The logo of the NSE symbolizes a single nationwide securities trading facility ensuring equal and fair access to investors trading members and issuers all over the country. The initials of the Exchange viz. N, S and E have been etched on the logo and are distinctly visible. The logo symbolizes use of state of the art information technology and satellite connectivity to bring about the change within the securities industry. The logo symbolizes vibrancy and unleashing of creative energy to constantly bring about change through innovation.

Indices In NSE
S&P CNX Nifty CNX Nifty Junior CNX IT Sector Index CNX Bank Index CNX 100 The most popular of above is S&P CNX Nifty. All these are explained in detail in the next section.

S&P CNX Nifty


S&P CNX Nifty is a well diversified 50 stock index accounting for 25 sectors of the economy. It is used for a variety of purposes such as benchmarking

Study of capital market fund portfolios, index based derivatives and index funds. S&P CNX Nifty is owned and managed by India Index Services and Products Ltd. (IISL), which is a joint venture between NSE and CRISIL. IISL is India's first specialized company focused upon the index as a core product. IISL have a consulting and licensing agreement with Standard & Poor's (S&P), who are world leaders in index services. The average total traded value for the last six months of all Nifty stocks is approximately 47% of the traded value of all stocks on the NSE Nifty stocks represent about 58% of the total market capitalization as on December 30, 2005.

Impact cost of the S&P CNX Nifty for a portfolio size of Rs.5 million is 0.07%.

S&P CNX Nifty is professionally maintained and is ideal for derivatives.

CNX Nifty Junior


The next rung of liquid securities after S&P CNX Nifty is the CNX Nifty Junior. It may be useful to think of the S&P CNX Nifty and the CNX Nifty Junior as making up the 100 most liquid stocks in India. As with the S&P CNX Nifty, stocks in the CNX Nifty Junior are filtered for liquidity, so they are the most liquid of the stocks excluded from the S&P CNX Nifty. The maintenance of the S&P CNX Nifty and the CNX Nifty Junior are synchronized so that the two indices will always be disjoint sets; i.e. a stock will never appear in both indices at the same time. Hence it is always meaningful to pool the S&P CNX Nifty and the CNX Nifty Junior into a composite 100 stock indexes or portfolio. CNX Nifty Junior represents about 9.50% of the total market capitalization as on December 30, 2005. The average traded value for the last six months of all Junior Nifty stocks is

Study of capital market approximately 8% of the traded value of all stocks on the NSE Impact cost for CNX Nifty Junior for a portfolio size of Rs.2.50 million is 0.15%

CNX IT Sector Index


Information Technology (IT) industry has played a major role in the Indian economy during the last few years. A number of large, profitable Indian companies today belong to the IT sector and a great deal of investment interest is now focused on the IT sector. In order to have a good benchmark of the Indian IT sector, IISL has developed the CNX IT sector index. CNX IT provides investors and market intermediaries with an appropriate benchmark that captures the performance of the IT segment of the market. Companies in this index are those that have more than 50% of their turnover from IT related activities like software development, hardware manufacture, vending, support and maintenance. The average total traded value for the last six months of CNX IT Index stocks is approximately 91% of the traded value of the IT sector. CNX IT Index stocks represent about 96% of the total market capitalization of the IT sector as on March 31, 2005. The average total traded value for the last six months of all CNX IT Index constituents is approximately 14% of the traded value of all stocks on the NSE. CNX IT Index constituents represent about 14% of the total market capitalization as on March 31, 2005.

Methodology
The index is a market capitalization weighted index with its base period

Study of capital market being December 1995 and the base date and base value being January 1, 1996 and 1,000 respectively. The Base Value of the index is being revised from 1000 to 100 w.e.f. 28 May 2004.

Selection Criteria
Selection of the index set is based on the following criteria: Company's market capitalization rank in the universe should be less than 500. Company's turnover rank in the universe should be less than 500. Company's trading frequency should be at least 90% in the last six months.

Company should have a positive net worth. A company which comes out with a IPO will be eligible for inclusion in the

index, if it fulfills the normal eligibility criteria for the index for a 3 month period instead of a 6 month period.

CNX Bank Index

Study of capital market The Indian banking Industry has been undergoing major changes, reflecting a number of underlying developments. Advancement in communication and information technology has facilitated growth in internetbanking, ATM Network, Electronic transfer of funds and quick dissemination of information. Structural reforms in the banking sector have improved the health of the banking sector. The reforms recently introduced include the enactment of the Securitization Act to step up loan recoveries, establishment of asset reconstruction companies, initiatives on improving recoveries from Nonperforming Assets (NPAs) and change in the basis of income recognition has raised transparency and efficiency in the banking system. Spurt in treasury income and improvement in loan recoveries has helped Indian Banks to record better profitability. In order to have a good benchmark of the Indian banking sector, India Index Service and Product Limited (IISL) has developed the CNX Bank Index. CNX Bank Index is an index comprised of the most liquid and large capitalized Indian Banking stocks. It provides investors and market intermediaries with a benchmark that captures the capital market performance of Indian Banks. The index will have 12 stocks from the banking sector, which trade on the National Stock Exchange. The average total traded value for the last six months of CNX Bank Index stocks is approximately 74% of the traded value of the banking sector. CNX Bank Index stocks represent about 79% of the total market capitalization of the banking sector as on March 31, 2005. The average total traded value for the last six months of all the CNX Bank Index constituents is approximately 10% of the traded value of all stocks on the NSE. CNX Bank Index constituents represent about 9% of the total market capitalization as on March 31, 2005.

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Selection Criteria
Selection of the index set is based on the following criteria: Company's market capitalization rank in the universe should be less than 500. Company's turnover rank in the universe should be less than 500. Company's trading frequency should be at least 90% in the last six months.

Company should have a positive net worth. A company which comes out with an IPO will be eligible for inclusion in

the index, if it fulfills the normal eligibility criteria for the index for a 3 month period instead of a 6 month period.

CNX 100

Method of Computation CNX 100 is computed using market capitalization weighted method, wherein the level of the index reflects the total market value of all the stocks in the index relative to a particular base period. The method also takes into account constituent changes in the index and importantly corporate actions such as stock splits, rights, etc without affecting the index value. Base Date and Value The CNX 100 Index has a base date of Jan 1, 2003 and a base value of 1000.

Study of capital market Criteria for Selection of Constituent Stocks CNX 100 index would comprise of the securities, which are constituents of S&P CNX Nifty, and CNX Nifty Junior. In other words this index is a combination of the S&P CNX Nifty and CNX Nifty Junior. Any changes i.e. inclusion and exclusion of securities in S&P CNX Nifty and CNX Nifty Junior would be automatically mirrored in this new index.

Listing of securities in NSE


NSE plays an important role in helping Indian companies access equity capital, by providing a liquid and well-regulated market. NSE has about 1016 companies listed representing the length, breadth and diversity of the Indian economy which includes from hi-tech to heavy industry, software, refinery, public sector units, infrastructure, and financial services. Listing on NSE raises a companys profile among investors in India and abroad. Trade data is distributed worldwide through various news-vending agencies. More importantly, each and every NSE listed company is required to satisfy stringent financial, public distribution and management requirements. High listing standards foster investor confidence and also bring credibility into the markets. NSE lists securities in its Capital Market (Equities) segment and its Wholesale Debt Market segment

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Securities Available for Trading


The Capital Market (Equities) segment of NSE facilitates trading in the following instruments: A Shares Equity Shares Preference Shares

B Debentures Partly Convertible Debentures Fully Convertible Debentures Non Convertible Debentures Warrants / Coupons / Secured Premium Notes/ other Hybrids Bonds
B Units of Mutual Funds.

Market Timings
Trading on the equities segment takes place on all days of the week (except Saturdays and Sundays and holidays declared by the Exchange in advance). The market timings of the equities segment are: Normal Market Open: 09:55 hours.

Study of capital market Normal Market Close: 15:30 hours. The Closing Session is held between 15.50 hours and 16.00 hours. Limited Physical Market Open: 09:55 hours. Limited Physical Market Close: 15:30 hours.

Trading System
NSE operates on the 'National Exchange for Automated Trading' (NEAT) system, a fully automated screen based trading system, which adopts the principle of an order driven market. NSE consciously opted in favor of an order driven system as opposed to a quote driven system. This has helped reduce jobbing spreads not only on NSE but in other exchanges as well, thus reducing transaction costs.

Trading System - Market Types


The NEAT system has four types of market. They are: 1. Normal Market All orders which are of regular lot size or multiples thereof are traded in the Normal Market. For shares that are traded in the compulsory dematerialized mode the market lot of these shares is one. Normal market consists of various book types wherein orders are segregated as Regular lot orders, Special Term orders, and Negotiated Trade Orders and Stop Loss orders depending on their order attributes. 2. Odd Lot Market All orders whose order size is less than the regular lot size are traded in the odd-lot market. An order is called an odd lot order if the order size is less than regular lot size. These orders do not have any special terms attributes attached to them. In an odd-lot market, both the price and quantity of both the orders (buy and sell) should exactly match for the trade to take place. Currently the odd lot

Study of capital market market facility is used for the Limited Physical Market as per the SEBI directives.

3. Auction Market In the Auction Market, auctions are initiated by the Exchange on behalf of trading members for settlement related reasons. There are 3 participants in this market.

Initiator - the party who initiates the auction process is called an initiator. Competitor - the party who enters orders on the same side as of the initiator. Solicitor - the party who enters orders on the opposite side as of the initiator.

1. Spot Market Spot orders are similar to the normal market orders except that spot orders have different settlement periods vis--vis normal market. These orders do not have any special terms attributes attached to them. Currently the Spot Market is not in use.

Trading System - Order Books The NSE trading system provides complete flexibility to members in the kinds of orders that can be placed by them. Orders are first numbered and timestamped on receipt and then immediately processed for potential match. Every order has a distinctive order number and a unique time stamp on it. If a match is not found, then the orders are stored in different 'books'. Orders are stored in price-time priority in various books in the following sequence: Best Price. Within Price, by time priority.

Study of capital market Price priority means that if two orders are entered into the system, the order having the best price gets the higher priority. Time priority means if two orders having the same price are entered, the order that is entered first gets the higher priority. The Equities segment has following types of books: 1. Regular Lot Book The Regular Lot Book contains all regular lot orders that have none of the following attributes attached to them. All or None (AON) Minimum Fill (MF) Stop Loss (SL) 1. Special Terms Book The Special Terms book contains all orders that have either of the following terms attached: All or None (AON) Minimum Fill (MF)

1. Negotiated Trade Book The Negotiated Trade book contains all negotiated order entries captured by the system before they have been matched against their counterparty trade entries. These entries are matched with identical counterparty entries only. It is to be noted that these entries contain a counterparty code in addition to other order details.

2. Stop-Loss Book

Study of capital market Stop Loss orders are stored in this book till the trigger price specified in the order is reached or surpassed. When the trigger price is reached or surpassed, the order is released in the Regular lot book. The stop loss condition is met under the following circumstances:

Sell order - A sell order in the Stop Loss book gets triggered when the last traded price in the normal market reaches or falls below the trigger price of the order.

Buy order - A buy order in the Stop Loss book gets triggered when the last traded price in the normal market reaches or exceeds the trigger price of the order.

1. Odd Lot Book The Odd lot book contains all odd lot orders (orders with quantity less than marketable lot) in the system. The system attempts to match an active odd lot order against passive orders in the book. Currently, pursuant to a SEBI directive, the Odd Lot Market is being used for orders that have quantity less than or equal to 500 viz. the Limited Physical Market.

2. Spot Book The Spot lot book contains all spot orders (orders having only the settlement period different) in the system. The system attempts to match an active spot lot order against the passive orders in the book. Currently the Spot Market book type is not in use.

3. Auction Book

Study of capital market This book contains orders that are entered for all auctions. The matching process for auction orders in this book is initiated only at the end of the solicitor period.

Trading System - Order Matching Rules The best buy order is matched with the best sell order. An order may match partially with another order resulting in multiple trades. For order matching, the best buy order is the one with the highest price and the best sell order is the one with the lowest price. This is because the system views all buy orders available from the point of view of a seller and all sell orders from the point of view of the buyers in the market. So, of all buy orders available in the market at any point of time, a seller would obviously like to sell at the highest possible buy price that is offered. Hence, the best buy order is the order with the highest price and the best sell order is the order with the lowest price. Members can proactively enter orders in the system, which will be displayed in the system till the full quantity is matched by one or more of counter-orders and result into trade(s) or is cancelled by the member. Alternatively, members may be reactive and put in orders that match with existing orders in the system. Orders lying unmatched in the system are 'passive' orders and orders that come in to match the existing orders are called 'active'

Study of capital market orders. Orders are always matched at the passive order price. This ensures that the earlier orders get priority over the orders that come in later.

Trading System - Order Conditions A Trading Member can enter various types of orders depending upon his/her requirements. These conditions are broadly classified into three categories: time related conditions, price-related conditions and quantity related conditions.

1. Time Conditions

DAY - A Day order, as the name suggests, is an order which is valid for the day on which it is entered. If the order is not matched during the day, the order gets cancelled automatically at the end of the trading day.

GTC - A Good Till Cancelled (GTC) order is an order that remains in the system until it is cancelled by the Trading Member. It will therefore be able to span trading days if it does not get matched. The maximum number of days a GTC order can remain in the system is notified by the Exchange from time to time.

GTD - A Good Till Days/Date (GTD) order allows the Trading Member to specify the days/date up to which the order should stay in the system. At the end of this period the order will get flushed from the system. Each day/date counted is a calendar day and inclusive of holidays. The days/date counted are inclusive of the day/date on which the order is placed. The maximum number of days a GTD order can remain in the system is notified by the Exchange from time to time.

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IOC - An Immediate or Cancel (IOC) order allows a Trading Member to buy or sell a security as soon as the order is released into the market, failing which the order will be removed from the market. Partial match is possible for the order, and the unmatched portion of the order is cancelled immediately.

1. Price Conditions

Limit Price/Order An order that allows the price to be specified while entering the order into the system.

Market Price/Order An order to buy or sell securities at the best price obtainable at the time of entering the order.

Stop Loss (SL) Price/Order The one that allows the Trading Member to place an order which gets activated only when the market price of the relevant security reaches or crosses a threshold price. Until then the order does not enter the market. A sell order in the Stop Loss book gets triggered when the last traded price in the normal market reaches or falls below the trigger price of the order. A buy order in the Stop Loss book gets triggered when the last traded price in the normal market reaches or exceeds the trigger price of the order. E.g. If for stop loss buy order, the trigger is 93.00, the limit price is 95.00 and the market (last traded) price is 90.00, then this order is released into the system

Study of capital market once the market price reaches or exceeds 93.00. This order is added to the regular lot book with time of triggering as the time stamp, as a limit order of 95.00

1. Quantity Conditions Disclosed Quantity (DQ)- An order with a DQ condition allows the Trading Member to disclose only a part of the order quantity to the market. For example, an order of 1000 with a disclosed quantity condition of 200 will mean that 200 is displayed to the market at a time. After this is traded, another 200 is automatically released and so on till the full order is executed. The Exchange may set a minimum disclosed quantity criteria from time to time.

MF - Minimum Fill (MF) orders allow the Trading Member to specify the minimum quantity by which an order should be filled. For example, an order of 1000 units with minimum fill 200 will require that each trade be for at least 200 units. In other words there will be a maximum of 5 trades of 200 each or a single trade of 1000. The Exchange may lay down norms of MF from time to time.

AON - All or None orders allow a Trading Member to impose the condition that only the full order should be matched against. This may be by way of

Study of capital market multiple trades. If the full order is not matched it will stay in the books till matched or cancelled.

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Establishment of NSE
The National Stock Exchange of India (NSE) is one of the most important and most advanced stock markets in India, and, in terms of transactions, it is the third largest stock exchange in the World. In 1994, the National Stock Exchange of India (NSE) functioned as a platform for securities exchange. The NSE India exchanges many different securities, such as equity, corporate debt, central and state government securities, commercial paper, and certificates of deposit. At present, 1000 members are enrolled on the NSE, and it is the owner of different financial and insurance institutions. NSE has played a important role for creating capital for the companies in India.

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BOARD OF DIRECTORS OF NSE


MR. GP Gupta DR. RH Patil MR. Ravi Narain Mr.Birendra Kumar Chairman and Managing Director, IDBI. Managing Director, NSE. Deputy Managing Director, NSE Managing Director & Chief Executive Officer Managing Director & Chief Executive Officer SBI Capital Markets Ltd. SBI Capital Markets Ltd. Executive Director (Investments) Life Insurance Corporation of India Chairman & Managing Director The Industrial Finance Corp. of India Ltd. Vice Chairman &Managing Director Infrastructure Leasing & Financial Services Ltd. Senior Executive Director Securities and Exchange Board of India Ex-Managing Director General Insurance Corporation of India Chairman Unit Trust of India Managing Director & Chief Operations Officer

Mr. P. A. Balasubramanian Mr.P.V.Narasimham

Mr. Ravi Parthasarathy

Mr. O. P. Gahrotra

Mr. P.M.Venkatasubramanian

Mr.P.S.Subramanyam .Mrs.LalitaD.Gupte

Study of capital market ICICI Limited Mr. Deepak Parekh Mr.S.P.Chhajed Mr. Justice M.L. Pendse Mr. A. P. Kurian Prof. (Dr.) K R S Murthy Mr. S. H. Khan Mr.S.Venkiteswaran Mr.Y.H.Malegam Chairman HDFC Partner, M/s Chhajed & Doshi ((Retd.) Former Chief Justice of Karnataka High Court Chairman, AMFI IIM, Bangalore Ex- Chairman & Managing Director, IDBI Sr. Advocate Senior Partner S.B. Billimoria & Co.,

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Developments on the Exchange


NSE and NSCCL went live with the inaugural session for Automatic Lending and Borrowing Mechanism (ALBM) for lending and borrowing of securities on February 10, 1999. This is the first time an Indian agency approved by SEBI will be conducting the securities lending & borrowing transactions based on international practices.

Membership
890 trading members on the Capital Market segment, of which around 86% account for corporates and the remaining are individuals and firms. Out of these 890 trading members, 89 trading members are also members of Wholesale Debt Market segment, all of which are corporate and there are 7 trading members exclusively on Wholesale Debt Market Segment.

Geographic Distribution
Over 6839 trading terminals given to the members as on November 25, 1999 Over 2342 VSAT's across the country with a 24 hour Network monitoring system in over 291 cities as of November 01, 1999.

Number of Companies
On the Capital Market segment, Equity Shares of 685 companies are listed and 572 companies are permitted to trade as of October 31, 1999.

Study of capital market On the Wholesale Debt Market segment, 797 securities are listed and 517 securities are permitted to trade as of October 31, 1999. Of the 797 securities listed, 369 are Government Securities/T-Bills and the balance account for other securities.

Capital Market Operations

NSE is working to increase the capacity of the trading system from the present 4, 00,000 trades per day to more than 10, 00, 000 trades per day.

The average daily numbers of trades have gone up from over 893 trades in November-94 to over 4,36,387 trades in October '99. On October 13,'99 the number of trades reached a record high of 5,64,653 which makes NSE one of the largest stock exchanges in the world Average daily traded value has increased from Rs.7 crores in November-94 to more than Rs. 3439 crores in October '99 with a high of Rs.4851 crores recorded on October 13, '99 Number of shares traded has increased from 76.10 lakhs in November-94 to 26,100.43 lakhs in October '99. Net traded value has increased from Rs.125 crores in November'94 to 72,216 crores in October '99.

The market capitalization of companies has increased from Rs. 2, 92,637 crores in November '94 to Rs. 6, 70,062 crores in October '99.

Delivered value (settlement wise) has increased from Rs.60 crores in November -94 to Rs.9, 333 crores in October '99.

Number of shares traded (depository segment) has increased from 200 shares in December-96 to 110.14 lakh shares in October '99.

Study of capital market Net traded value (depository segment) has increased from Rs.0.43 lakhs in December-96 to Rs.39,009.64 lakhs in October '99 The total turnover in the 3 Day market segment during October '99 was Rs. 1170.21 crores. Total turnover in the shares traded under compulsory demat shares during October '99 was Rs. 52,055 crores

Clearing & Settlement


Completed 262 settlements successfully without any delay or postponement as on December 02, 1999. Value of shares handled by the Clearing house per week has increased from Rs. 30 crores in November 1994 to over Rs.2432 crores per week in September 1999.
Inter-Region Clearing: NSCCL has Regional Clearing Centres at

Delhi, Calcutta, Chennai and a Central Clearing Centre at Mumbai. Members have the option of delivering/receiving the securities at a clearing centre chosen by them.

Wholesale Debt Market Operations


The WDM segment commenced operations on June 30, 1994 with

224 securities carrying an outstanding debt value of Rs. 1, 35,000

Study of capital market crores. This has now increased to 1306 securities with a market capitalization of Rs. 4, 58,541.35 crores as on September 30, 1999. The highest daily traded value of Rs. 2434.00 crores recorded on August 06, 1999. The net monthly traded value in the WDM segment increased from Rs. 1096.25 crores in July -94 to Rs. 26,957.09 crores in August' 99
Government securities along with Treasury bills together account for

over 85% of the total market activity.

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National Securities Clearing Corporation Ltd.


The National Securities Clearing Corporation Ltd. (NSCCL), a wholly owned subsidiary of NSE, was incorporated in August 1995. It was the first clearing corporation to be established in the country and also the first clearing corporation in the country to introduce settlement guarantee. It was set up with the following objectives: to bring and sustain confidence in clearing and settlement of securities;

Study of capital market to promote and maintain, short and consistent settlement cycles; to provide counter-party risk guarantee, and To operate a tight risk containment system. NSCCL commenced clearing operations in April 1996. It has since completed more than 2150 settlements (equities segment) without delays or disruptions. The National Securities Clearing Corporation Ltd. (NSCCL), a wholly owned subsidiary of NSE, was incorporated in August 1995. It was set up to bring and sustain confidence in clearing and settlement of securities; to promote and maintain, short and consistent settlement cycles; to provide counter-party risk guarantee, and to operate a tight risk containment system. NSCCL carries out the clearing and settlement of the trades executed in the Equities and Derivatives segments and operates Subsidiary General Ledger (SGL) for settlement of trades in government securities. It also undertakes settlement of transactions on other stock exchanges like, the Over the Counter Exchange of India.NSCCL has successfully brought about an up-gradation of the clearing and settlement procedures and has brought Indian financial markets in line with international markets.

National Commodity Clearing Limited


In order to harness its expertise in the area of Clearing and Settlement activities and in keeping pace with the growing commodity markets in India and to provide a special thrust and focus on the Clearing & Settlement needs of the commodity markets, a subsidiary company, namely, National Commodity Clearing Limited (NCCL) has been incorporated jointly between NSE and NCDEX. Presently, the Company provides IT and process support in respect of clearing & settlement needs of NCDEX.

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NSE InfoTech Services Limited


Information Technology has been the backbone of conceptualization, formation, running and the success of National Stock Exchange of India Limited (NSE). NSE has been at the forefront in spearheading technological changes in the securities market. It was important to give a special thrust and focus on Information Technology to retain the primacy in the market. Towards this, a wholly owned subsidiary, namely, NSE InfoTech Services Limited (NSETECH) has been incorporated to cater to the needs of NSE and all its group companies, exclusively.

India Index Services & Products Ltd.


India Index Services and Products Limited (IISL), a joint venture between NSE and CRISIL Ltd. (formerly the Credit Rating Information Services of India Limited), was set up in May 1998 to provide a variety of indices and index related services and products for the Indian capital markets. It has a consulting and licensing agreement with Standard and Poor's (S&P), the world's leading provider of investible equity indices, for co-branding equity indices. IISL provides a broad range of services, products and professional index services. It maintains over 80 equity indices comprising broad-based benchmark indices, sectoral indices and customized indices. Many investment and risk management products based on IISL indices have been developed in the recent past, within

Study of capital market India and abroad. These include index based derivatives traded on NSE and Singapore Exchange (SIMEX) and a number of index funds.

NSE.IT Ltd.
NSE.IT, a 100% subsidiary of National Stock Exchange of India Limited (NSE), is the information technology arm of the largest stock exchange of the country. A leading edge technology user, NSE houses state-ofthe-art infrastructure and skills. NSE.IT possesses the wealth of expertise acquired in the last six years by running the trading and clearing infrastructure of largest stock exchange of the country. NSE.IT is uniquely positioned to provide products, services and solutions for the securities industry. There has been a long felt need for top-of-the-line products, services and solutions in the area of trading, broker front-end and back-office, clearing and settlement, web-based trading, risk management, treasury management, asset liability management, banking, insurance etc. NSE.IT's expertise in these areas is the primary focus. The company also plans to provide consultancy and

Study of capital market implementation services in the areas of Data Warehousing, Business Continuity Plans, Stratus Mainframe Facility Management, Site Maintenance and Backups, Real Time Market Analysis & Financial News over NSE-Net, etc. NSE.IT is an Export Oriented Unit with STP and plans to go global for various IT services in due course. In the near future the company plans to release new products for Broker Back-office Operations and enhance NeatXS / Neat iXS to support Straight through Processing on the net.

DotEx International Limited


The data and info-vending products of NSE are provided through a separate company DotEx International Ltd., a 100% subsidiary of NSE, which is a professional setdedicated solely for this purpose. DotEx data products may be classified under the following broad categories:

up

On-line streaming data feed Intra-day Snapshot data feed

End of day data

National Securities Depository Ltd. (NSDL)


In order to solve the myriad problems associated with trading in physical securities, NSE joined hands with the Industrial Development Bank of India (IDBI) and the Unit

Study of capital market Trust of India (UTI) to promote dematerialization of securities. Together they set up National Securities Depository Limited (NSDL), the first depository in India. NSDL commenced operations in November 1996 and has since established a national infrastructure of international standard to handle trading and settlement in dematerialized form and thus completely eliminated the risks to investors associated with fake/bad/stolen paper

Milestones of national stock exchange


As of July 2007, the total market capitalization of NSE is 42,74,509 Crore INR that makes it the second largest stock market in South Asia in terms of the market capitalization. The major capital markets where the NSE is operational are - wholesale debt market, futures and options market, equity market and retail debt market. NSE has included some pioneering efforts to provide a modernized service to the financial and capital market of India. NSE is the first to launch the electronic limit order book (LOB) exchange in order to trade the securities in the country. Other markets in India are also now supporting the NSE model following its immense success. NSE is also first to co-promote the first depository in India National Securities Depository Limited. NSE pioneered by setting up the National Securities Clearing Corporation Ltd that is dedicated to provide replacement on all the spot equity market trades in the country. The commencement of Internet Trading in February 2000 is one of the milestones achieved by NSE. It is the first exchange in the country to propose for trading equity derivatives. Apart from the NSE index, the National Stock Exchange of India also provides some other indices like:

Study of capital market S&P CNX NIFTY CNX IT CNX NIFTY JUNIOR BANK NIFTY S&P CNX DEFTY CNX 100 NIFTY MIDCAP 50 CNX MIDCAP S&P CNX 500 There are a total of 1319 companies listed in NSE index. There are some financial and management requirements that the companies must satisfy in order get enlisted in the NSE index. The industry classification of the companies may be diverse and may include - heavy industry, hi-tech industry, refinery, software industry, public sector units, financial services and infrastructure industry. The NSE lists the company securities in its wholesale debt market segment or in the capital market (equities) segment.

List of various milestones:


November 1992 Incorporation April 1993 Recognition as a stock exchange May 1993 Formulation of business plan June 1994 Wholesale Debt Market segment goes live November 1994 Capital Market (Equities) segment goes live March 1995 Establishment of Investor Grievance Cell April 1995 Establishment of NSCCL, the first Clearing Corporation

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June 1995 Introduction of centralized insurance cover for all trading members

July 1995 Establishment of Investor Protection Fund October 1995 Became largest stock exchange in the country April 1996 Commencement of clearing and settlement by NSCCL April 1996 Launch of S&P CNX Nifty June 1996 Establishment of Settlement Guarantee Fund November 1996 Setting up of National Securities Depository Limited, first depository in India, co-promoted by NSE November 1996 Best IT Usage award by Computer Society of India

December 1996 Commencement of trading/settlement in dematerialized securities

December 1996 Dataquest award for Top IT User December 1996 Launch of CNX Nifty Junior February 1997 Regional clearing facility goes live November 1997 Best IT Usage award by Computer Society of India May 1998 Promotion of joint venture, India Index Services & Products Limited (IISL) May 1998 Launch of NSEs Web-site: www.nse.co.in July 1998 Launch of NSEs Certification Programme in Financial Market August 1998 CYBER CORPORATE OF THE YEAR 1998 award February 1999 Launch of Automated Lending and Borrowing Mechanism April 1999 CHIP Web Award by CHIP magazine October 1999 Setting up of NSE.IT January 2000 Launch of NSE Research Initiative

Study of capital market February 2000 Commencement of Internet Trading June 2000 Commencement of Derivatives Trading (Index Futures) September 2000 Launch of Zero Coupon Yield Curve November 2000 Launch of Broker Plaza by Dotex International, a joint venture between NSE.IT Ltd. and i-flex Solutions Ltd. December 2000 Commencement of WAP trading June 2001 Commencement of trading in Index Options July 2001 Commencement of trading in Options on Individual Securities November 2001 Commencement of trading in Futures on Individual Securities December 2001 Launch of NSE VaR for Government Securities January 2002 Launch of Exchange Traded Funds (ETFs) May 2002 NSE wins the Wharton-Infosys Business Transformation Award in the Organization-wide Transformation category October 2002 Launch of NSE Government Securities Index January 2003 Commencement of trading in Retail Debt Market June 2003 Launch of Interest Rate Futures August 2003 Launch of Futures & options in CNXIT Index June 2004 Launch of STP Interoperability August 2004 Launch of NSEs electronic interface for listed companies March 2005 India Innovation Award by EMPI Business School, New Delhi June 2005 Launch of Futures & options in BANK Nifty Index December 2006 Derivative Exchange of the Year, by Asia Risk magazine January 2007 Launch of NSE - CNBC TV 18 media centre

Study of capital market March 2007 NSE, CRISIL announce launch of IndiaBondWatch.com June 2007 NSE launches derivatives on Nifty Junior & CNX 100 October 2007 NSE launches derivatives on Nifty Midcap 50 January 2008 Introduction of Mini Nifty derivative contracts on 1st January 2008 March 2008 Introduction of long term option contracts on S&P CNX Nifty Index April 2008 Launch of India VIX April 2008 Launch of Securities Lending & Borrowing Scheme August 2008 Launch of Currency Derivatives

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About the Group


In a short span of 20 years since its inception, the angel group has emerged as one of the five top retail stock broking houses in India, having membership of BSE,NSE and two leading commodity exchanges in the country .i.e. NCDEX & MCX. Angel broking is also registered as a depository participant with CDSL. The group is promoted by Mr. Dinesh Thakkar, who started this business as a sub broker in 1987 with a team of 3. Today angel group is managed by a team of 2234+ direct employees and has a nation wide network comprising of 15 regional

Study of capital market hubs, 80 branches, 2 pcg offices, 5000+ sub brokers & business associates. The group currently services more than 3 lac+ retail clients.

Operations in Angel Broking


Angel Broking Limited is one of the leading and professionally managed stock broking firm involved in quality services and research. Angel Broking Limited is a corporate member of The Stock Exchange, Mumbai. The membership of the company with The Stock Exchange Mumbai was originally in the name of Mukesh R. Gandhi, which was eventually turned into a corporate membership in the name of Angel Broking Limited. Angel Broking Limited is managed by Mr. Dinesh Thakkar and he is well supported by Mr. Mukesh Gandhi, a fifteen years veteran in the market.

Study of capital market The group is well supported by a professional and qualified research team and efficient operations and back office team, which comprises of highly dedicated and qualified individuals. Angel has an in-house, state of art research department. Angel believes in reaching out to the customer at the farthest end rather than by reaching out to them. The company in its Endeavour to give its client the best has opened up several branches all over Mumbai, which are efficiently integrated with the Head Office. Angel Broking Limited is primarily into retail stock broking, with a customer base of retail investors, which has been increasing at a compounded growth rate of 100% every year. The company has huge network sub-brokers in Mumbai and other places outside Mumbai, registered with SEBI, who act as channel partners for the company. The company presently has total staff strength of around 150 employees who are spread accordingly across the head office and all the branches. Angel has empowered its physical presence throughout India through various strategies which it has been adopting efficiently and effectively over a period of time, like opening up of branches at various places, tie-ups with various agencies and sales agents, buy-outs of smaller regional outfits and appointment of subbrokers and franchisees. Moreover Angel has been tapping and including high net-worth and self-employed individuals it its vast array of clients.

Top quality research & advisory services


a) Market outlook at 9;15 am A crisp market report that arms our clients with sensitive information before the opening ball. Key corporate developments,

Study of capital market policy announcements, geo-political news and views are analyzed for their impact on the market. b) Technical analysis report at 6:00pm This is a daily report on markets which includes the view on the market for the next trading session as well as the short medium advice on specific sector/stocks. Further, two stock picks are given including pivot levels for NIFTY 50 stocks. c) Derivative Analysis Report at 9:15 am The report provides information on FII activity in the derivative segment, change in open interest put call ratio, cost of carry of stocks and index based sessions derivative products. Our derivative analysts use the above tools to project movements during the next trading sessions.

Management

Dinesh thaakar Chairman & Managing Director


The Angel Group of Companies was brought to life by Mr. Dinesh Thakkar. He ventured into stock trading with an intention to raise capital for his own independent enterprise. However, he recognized the

Study of capital market opportunity offered by the stock market to serve individual investors. Thus Indias first retail-focused stock-broking house was established in 1987. Under his leadership, Angel became the first broking house to embrace new technology for faster, more effective and affordable services to retail investors. Mr. Thakkar is valued for his understanding of the economy and the stockmarket. The print and electronic media often seek his views on the market trend as well as investment strategies.

Lalit thakkar Director, Research


Mr. Lalit Thakkar is the motivating force behind Angels highly acclaimed Research team. Hes been a part of the senior management team since the Angel Groups inception. His technical and fundamental outlook has provided impetus to Angels market research team. Research-based & personalized advisory services are Angels forte, and Mr. Lalit Thakkar has undoubtedly been the brain behind it. When it comes to analyzing the market, Mr. Lalit Thakkar is truly a genius. His hands-on experience and fundamental knowledge of the market can predict the market trend early. His views on the market trend are often quoted in the print and electronic media

Study of capital market

Amit majumdar Executive Director Operations& Alt Business


A chartered Accountant by qualification, Mr. Amit Majumdar is a key member of Angels strategic decision-making process. He has been with the group since August 2004. He has handled several functions of the group like finance and operations, to name of few. He has rich experience in finance, investment banking, treasury, consultancy and advisory services. Mr. Majumdar has led many successful initiatives for the group. Before joining the Angel Group, Mr. Majumdar has been associated with Rabo India Finance, Ambit Corporate Finance and Ernst & Young.

Rajiv phadke Executive Director HR & Corp. Communications


Mr. Rajiv Phadke has actively contributed to the Groups growth over the last four years. Holding a major in Finance, Mr. Rajiv Phadke is a strategic thinker with expertise in the field of corporate planning, international marketing, financial services, brand-building, HRD and quality management. With over 32 years of experience, Mr. Phadke has successfully led SBUs and financial companies from concept to commissioning. His career horizon spans Motilal Oswal Securities, Times Guaranty Financials, Nagarjuna Securities and Tata Exports Ltd. He is also a well-known speaker in the HR and business development circuit and his views are featured on various electronic media as well.

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Vinay aggarwal Executive Director, Equity Broking


Mr. Vinay Agrawal leads the Equity Broking business at Angel, which comprises Business Development, Operations, Product Development and E-broking initiative. He is actively involved in exploring new ways to adopt technology for business enhancement. A Chartered Accountant by qualification, Mr. Agrawal began his career with the Angel Group as Finance and Operations Consultant, and since then hes quickly climbed up the corporate.

Nikhil daxini Executive Director, Marketing& Sales


With an MBA in finance, Mr. Nikhil Daxini has been instrumental in introducing the concept of professional marketing of broking services at Angel. His area of focus is Business Development, Risk Management and Operations. Mr. Daxini has immense experience in the marketing of financial products and services. He has been associated with HDFC Bank Ltd. in the past.

Hitunshu debnathDirector,

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Distribution & Wealth Business


A marketing professional and a British Chevening scholar from the London School of Economics, Mr. Hitungshu Debnath leads the Distribution and Wealth Management business the Angel Group. It includes the distribution of Insurance, mutual funds, IPOs, personal loans and other wealth management products. at

Mr. Mudit Kulshreshtha Director, Business intelligence & Analytics He heads the advance analytics and strategic business intelligence division at Angel. With a Bachelors degree in Engineering and PhD in Economics, Mr. Mudit Kulshreshtha has more than 12 years experience in the field of strategy and business consulting. He has been associated with reputed consulting firms like Deloitte Consulting India, Ernst and Young, Arthur Andersen and WNS Global. He has advised several big clients in the U.S. and U.K. He is also a known speaker at public seminars and conferences organized by CII, NASSCOM, Indian School of Business and IIT.

Mr. Kasad Executive Director & CFO

Study of capital market He brings with him over 23 years of experience across Finance, Corporate Secretarial, Legal, Compliance and other general management functions from reputed organizations like A. F. Ferguson, Tata, Jindal British Steel, Countrywide Financial and Accenture. Prior to joining Angel, his was the Executive Vice President & CFO of DCB Bank.Mr. Kasad is also a member of the National CFO Guild of Senior Finance Professionals.

Mr. Syam Director, Operations. He brings with him over 18 years of experience in the field of Transaction Banking, Wholesale Banking, Treasury Banking, Consumer Banking and CBS. He started his career with ANZ Grindlays Bank and he was also associated with Standard Chartered Bank in India as Director Transactional Banking. Mr. Syam followed up his Engineering degree with an MBA. He has also attended Banking & Technology seminars organized by SCB Singapore, BSE India & Euro Finance.

Mr. Ketan shah Director, information technology. IT is a strategic function at Angel. And Mr. Ketan Shah is involved in the designing of Angels IT policies and Strategies. Mr. Shah leads all IT-

Study of capital market related activities from planning and budgeting to implementation and maintenance. Mr. Shah has over 18 years of industry experience. He has been involved in various aspects of Business Operations in his previous assignments.

Organizational Chart

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RESEARCH METHODOLOGY
Research is a procedure of logical and systematic application of the fundamentals of science to the general and overall questions of a study and scientific technique by which provide precise tools, specific procedures and technical, rather than philosophical means for getting and ordering the data prior to their logical analysis and manipulations. Different type of research design is available depending upon the nature of research project, availability of able manpower and circumstances. The study about ANALYSIS OF CAPITAL MARKET is exploratory as well as descriptive in nature .Discussion with experts, internet surfing, and journals were studied to explore more about the concerned objective and better understanding of the problem. After that questionnaire was prepared to meet the desired objective

Study of capital market

Research Design

Marketing research design is the specification of procedures for collecting and analyzing the data necessary to help identify or react to a problem or opportunity, such that the difference between the cost of obtaining various levels of accuracy and the expected value of the information associated with each level of accuracy is maximized. Several aspects of this definition deserve emphasis. First, research design requires the specification of procedures. These procedures involve decisions on what information to generate, the data collection method, the measurement approach, the object to be measured, and the way in which the data are to be analyzed. Second, the data are to be collected to help identify or react to a problem or opportunity. All data collected should eventually relate to decisions faced by management. Obviously, the efficient collection of data relevant to a decision requires a clear definition of the problem/opportunity. A third implication of the preceding definition is that information has value. Information acquires value as it helps improve decisions. The fourth major implication is that varying levels of accuracy of information can be generated in response to the same problem. Information accuracy is affected by the occurrence of a number of potential errors. Finally, the goal of applied research design is not to generate the most accurate information possible. Rather, the objective is to

Study of capital market generate the most valuable information in relation to the cost of generating the information.

Sources of Data:
The sources of data are of two types: a) Primary sources b) Secondary sources.

Primary Sources:
Primary data is data collected for first time especially for the purpose for which study is being conducted i.e. The problem under study.

Secondary Sources:
The secondary data is data, which is collected and compiled for the different purpose, which are used in research for this study. The secondary data include material collected from: Newspaper Magazine. Internet.

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Data Collection Instruments:


The various methods of data gathering involve the use of appropriate recording forms. These are called tools or instruments of data collection. Data was collected through structured questionnaire and small interviews administered by sitting with experts and discussing about the capital market.

Sampling Technique:
The small representative selected out of large population is selected at random is called sample. Well-selected sample may reflect fairly, accurately the characteristic of population. The chief aim of sampling is to make an inference about unknown parameters from a measurable sample statistics. Sampling technique used was Snowball sampling was used for the purpose of data collection as reference was taken form sample to reach other sample.

Sample Size:
Sample size refers to the number of items to be selected from the universe to constitute a sample. In the past four months I had the privilege of talking with many kinds of person including experts of Angel Brokings main branch and its sub brokers in different parts of Chandigarh.

Study of capital market Finally I constituted the research on 75 people including the experts and risk advisors and few investors of various branches and sub branches in Chandigarh.

Sampling Unit:
The sampling unit was the person who was asked about the stock market and about the affect of stock market on the financial condition of that individual.

LIMITATIONS OF THE STUDY


No study is complete in itself, however, good it may and every study has some limitations: Concerning less number of people is the main constraint of my study. Layman/common people were not included in the result, so their opinion towards the market is still unknown. Most of the experts expressed their opinions very briefly due to the constraint of time with them. The research was done with experts of only one broker (angel broking), so the view of other brokers towards the market is still unknown.

Study of capital market

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