THE DOGMAS OF THE QUIET PAST ARE INADEQUATE TO THE STORMY PRESENT.

AS OUR CASE IS NEW, SO WE MUST THINK ANEW AND ACT A NEW.

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 India Infoline – An Introduction

 Product Offerings

 Competitors

 Our Other Businesses – Brief Overview

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India Infoline – An Introduction

We were originally incorporated on October 18, 1995 as PROBITY

RESEARCH AND SERVICES PVT LTD. at Mumbai under the Companies
Act, 1956 with Registration No. 11 93797.

We became a public limited company on April 28, 2000.

The name of the Company was changed to India Infoline.com Limited

on May 23, 2000 and later to India Infoline Limited on March 23, 2001.

First Company in India to foray into the online distribution of Mutual

Funds.

We are a one-stop financial services shop, most respected for quality

of its advice, personalized service and cutting-edge technology.

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 The No.1Corporate agent for ICICI Prudential Life Insurance Company.
 Research acknowledged by Forbes as “Must Read for investor in South
Asia”
 Listed on Bombay and National Stock Exchange with a net worth of
INR 200 crore and a market cap of over INR 1970 crore.
 The company has a network of 976 business locations (branches and
sub-brokers) spread across 365 cities and towns. It has more than
800,000 customers.
 It is registered with NSDL as well as CDSL as a depository participant,
providing a one-stop solution for clients trading in the equities market.

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PILLARS OF THE ORGANIZATION.
 Unlike others, India Infoline has the concept of an Investment Team
 The brains behind all the investment strategies and decisions regarding Wealth Management
Services are:
Mr Nirmal Jain Mr R Venkataraman
MBA:IIM-A, Chartered & Cost MBA:IIM-B, B.Tech:IIT Kharagpur
Accountant

MBA:II

Mr Anand Tandon
MBA:IIM-A, B.Tech: IIT Kanpur
Mr Venkat Subramanian
BSc, B.sc chartered Accountant

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OUR MULTI LINE BUSINESS:-

INVESTMENT BANKING:- INSTITUTIONAL EQUITIES:-

6 Verticals for any kind of transactional One of the largest equity desks. Leadership in
requirement derivatives

WHOLESALE FINANCING:-
ASSET MANAGEMENT:- Customized funding for Companies, Institutions
Maximum risk adjusted returns and HNWIs

WEALTH MANAGEMENT:- PRIVATE CLIENT BROKERAGE:-

Life-cycle financial solutions Services across 976 Locations
Unparalleled range of advisory services Largest range of products

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OUR UNIQUE APPROACH :-

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Pr PRODUCT OFFERINGS:-
Direct Equity and F & O Trading
 Providing in-house research based advice on selected stocks

Portfolio Management Services

 Advise on Portfolio management Services.

Structured Products
 Products that offer our clients unique risk-reward equations that are customised to their
investment objectives
Mutual Funds Advisory
 Research based recommendations on Top Picks in Mutual Funds

Insurance Advisory
 Life & General Insurance Advisory

Real Estate Funds

 Advise on Investment in Real Estate through Fund structure

Art Funds
 Advise on Investment in Art through Fund structure

Bullion Trading

 Bullion buying and selling

148
Product Offerings (Financing
Products)
IPO Funding
 Advising and facilitating financing on select IPOs based on our in-house research

Loan Against Securities (Margin Funding )

 Provide Overdraft facility against collateral of Shares/ MF units

LAS Series (Term Loans)

 Provide Term Loan facility against collateral of Shares/ MF units

Promoter Funding
 Provide Term Loan facility against collateral of Shares

ESOP Funding

 Provide Term Loan/ Overdraft facility against collateral of Shares to be allotted to

Employees

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MILESTONES KEY:-

Incorporated on 18 October 1995 as probity research

and services.

Launched internet portal wwwindiainfoline.com in

may 1999.

Commenced distribution of personal financial

products like MF’s and RBI’s Bond in April 2000.

Launched online trading in shares branded as

www.5paisa.com in July 2000.
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Started life-insurance agency business in Dec. 2000
as corporate agent.

Became a depository participant of NSDL in

September 2001.

Launched stock messaging services in May 2003.

Acquired commodities broking license in March

2004.

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Launched portfolio management services in Aug.
2004.

Listed on NSE and BSE on May 17th 2005.

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COMPETITORS:-

Sharekhan.

Angel broking.

Motilal Oswal.

Karvy share broking.

ICICI Direct.

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OVERVIEW OF STOCK MARKET:-

A stock market, or equity market, is a private or public

market for the trading of company stock and derivatives at an
agreed price; these are securities listed on a stock exchange
as well as those only traded privately.

The size of the world stock market is estimated at about $36.6

trillion US at the beginning of October 2008.

The total world derivatives market has been estimated at

about $791 trillion face or nominal value,11 times the size of
the entire world economy.

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MAJOR STOCK MARKET WORLDWIDE:-

1. SENSEX(BSE) 7. HANG SENG

2. NIFTY (NSE) 8. SHANGAI

3. NASDAQ 9. STRAITS

4. NYSE 10. CAC

5. DOW JONES 11. DAX

6. FTSE 12. NIKKEI

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16
IMPACT OF GLOBAL TURMOIL ON MARKET.

BENCHMARK BEFORE RECESSION NOW

SENSEX
NIFTY

DOW JONES
NASDAQ
NIKKEI
FTSE
SHANGHAI

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FOREX MARKET:-

The foreign exchange market (currency, forex, or FX) market is where

currency trading takes place.

It is where banks and other official institutions facilitate the buying

and selling of foreign currencies.

The FX market is one of the largest and most liquid financial markets
in the world, and includes trading between large banks, central
banks, currency speculators, corporations, governments, and other
institutions.

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DERIVATIVE MARKET:-
Derivatives are financial contracts, or financial instruments, whose
values are derived from the value of something else (known as the
underlying). The underlying on which a derivative is based can be an
asset (e.g., commodities, equities (stocks), residential mortgages,
commercial real estate, loans, bonds), an index (e.g., interest rates,
exchange rates, stock market indices, consumer price index (CPI) —
see inflation derivatives), or other items (e.g., weather conditions, or
other derivatives). Credit derivatives are based on loans, bonds or
other forms of credit

Derivative is a product whose value is derived from the value

of one or more basic variables.

Underlying Asset can be Equity, Forex, commodity or any

other asset.

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TYPES OF DERIVATIVES:-

Forwards -
A forward contract is a customized contract
between two entities, where settlement takes place on
a specific date in the future at today’s pre-agreed price.

Futures –
A future is contract to buy or sell an
underlying asset at a specified future date, at a
specified price. These contracts are traded and settled
on exchanges. Future contracts can be on individual
scrip's or indices.

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Options –
Options are derivative instruments where one
party has a right to buy/sell the underlying while the
other party has an obligation to buy/sell . The person
with the right is called the buyer of the option. The
person with the obligation is called the writer of the
option

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TERMINOLOGIES USED:-
BROKER : A marketing specialist allowed to sell products of
a number of companies.

CONSUS ‘AD IDEM’ : meeting of the minds – having the

same understanding.

HINDU UNDIVIDED FAMILY : Consists of all persons

lineally descended from a common ancestor including their
wives and unmarried children. A Hindu family is presumed to
be undivided unless stated to the contrary.

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INFLATION : An increase in the price of products and
services over time. The main measure of inflation is the
Consumer Price Index.

KARTA : Senior most male member of a Hindu Undivided

Family authorized to manage the business of the family for the
benefit of all its members.

KIOSK : Light open structure for public telephone, sale of

newspapers, food etc.

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LIQUIDITY : Reflects how quickly an asset can be converted
to cash with little or no reduction in value.

NET ASSET VALUE : Market value of the assets of a mutual

fund scheme minus its liabilities

NET WORTH : Total assets minus total liabilities of an

individual.

OMBUDSMAN : Official appointed to investigate complaints

against a public authority.

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WEALTH TAX : Applicable under the Wealth Tax Act, 1957,
to every individual, Hindu Undivided Family and companies
having net wealth exceeding Rs.15 lacs on the date of
valuation.

Spot Price.

Futures Price.

Expiry Date.

Contract Cycle. -One month

-Two month
-Three month 25
PARTICIPANT IN STOCK MARKET:-

Hedgers

- Reduce risk

Speculators

- Bet on future movements – leverage

Arbitrageurs

- Take advantage of discrepancy in prices

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Making Fortunes from
Commodities
History
Organized commodities trading started in 1875 - Bombay Cotton
Trade Association
The government had banned futures trading in 1975, saying
excessive speculation had driven prices up.
It allowed trading to resume three years later but restricted it

to a few commodities. Trading in some other commodities

resumed only in 1997
In 2004, Government of India allowed the Multi Commodity
Exchange and the National Commodity and Derivatives
Exchange Ltd. to set up new bourses with a national reach and
launch online trading in a range of commodities.

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Facts - India

Agriculture - 26% of GDP

Agro commodities thriving

Huge domestic consumption market

One of the World’s largest importer of gold, edible oils

Third largest producer of cotton

Leading coffee / tea / sugar producer

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 List of Commodities

Energy Bullion Metals Agricultural Products

Products Products
•Crude Oil •Gold •Copper Arabica & robusta Coffee, Wheat,
•Furnace Oil •Silver •Tin Chana, Sugar, Rice, Guar Seed, Jute
•Nickel Sacking, Pepper, Castor Seed, Guar
gum, Raw Jute, Urad, Yellow Peas,
•Steel
Turmeric, Soymeal crude palm oil,
Cotton, Mustard seed, Mustard oil
Soybean, refined soy oilGur, Maize,
Raw silk, Cocoon, Jeera, Chilly,
Cashew, Cottonseed oilcake,
Sesame seed, Tur, metha oil, Kapas.

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Market Timings
Bullion/ Metals Trading: 10.00am to 12.00pm

Agro Commodities: 10.00am to 5.00pm

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Major commodity exchanges

Exchange Headquarters Commodities

MCX Mumbai, INDIA Multi Commodity exc hange
NCDEX Mumbai, INDIA Multi Commodity exc hange
CBOT Chic ago, USA Corn, Soybean, Soy Oil, Soy Meal, Rise,
Wheat, Gold, Silver
CME Chic ago, USA Cattle, Milk, Butter, Lumber
NYBOT New York, USA Cocoa, Cotton, Coffee, Sugar
NYMEX New York, USA Crude Oil, Natural Gas, Elec tric ity, Coal,
Gold, Silver, Copper, Aluminium
LME London, UK Aluminium, Copper, Lead, Nickel, Zinc,
Tin, Plastic s
LIFFE London, UK Cocoa, Robusta Coffee, Sugar, Wheat
IPE London, UK Crude Oil, Gas Oil, Natural Gas
TOCOM Tokyo, JAPAN Gold, Silver, Aluminium, Platinum,
Kerosene, Gasoline, Crude Oil, Rubber
SICOM Singapore Rubber, Coffee
SFE Sydney, Australia Wool, Cattle, Electric ity

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MCX
MCX an independent and de-mutulised multi commodity
exchange inaugurated in the year November 2003,has
permanent recognition from Government of India for
facilitating online trading, clearing and settlement operations
for commodity futures markets across the country.

Key shareholders of MCX include Financial Technologies (I)

Ltd., State Bank of India & associates, Fidelity International,
National Stock Exchange of India Ltd., National Bank for
Agriculture and Rural Development, HDFC Bank, SBI Life
Insurance Co. Ltd., Union Bank of India, Canara Bank, Bank of
India,Bank of Baroda and CorporationBank.

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NCDEX
NCDEX is a public limited company incorporated on April 23,
2003 NCDEX is a nation-level, technology driven de-mutualized
on-line commodity exchange with an independent Board of
Directors and professionals not having any vested interest in
commodity markets

Key promoted of NCDEX include ICICI Bank Limited (ICICI

Bank), Life Insurance Corporation of India (LIC), National Bank
for Agriculture and Rural Development (NABARD) and National
Stock Exchange of India Limited (NSE). Punjab National Bank
(PNB), CRISIL Limited (formerly the Credit Rating Information
Services of India Limited), Indian Farmers Fertiliser
Cooperative Limited (IFFCO)  and  Canara Bank   

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Trading in Commodities
How it really works ….
Futures

A future is contract to buy or sell an underlying

asset at a specified future date, at a specified price.

These contracts are traded and settled on

exchanges.

Future contracts can be on individual scrips or

indices.

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Futures Terminology

Spot Price

Futures Price

Expiry Date

Contract Cycle

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Products Offered
Online Trading
Diet Odin for Customers

Offline Trading
Branch/Franchise/RM places order using Dealer Odin

Clients can trade on both on MCX and NCDEX

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Brokerage Structure

ONLINE OFFLINE

Registration fees Rs.500 Rs.500

Minimum Initial Margin Rs.10000 Rs.10000

Trading Brokerage 0.05% 0.10%

Delivery Brokerage 0.25% 0.50%

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Why trade in commodities?

Driven by demand and supply

True reflector of economic activity

Impervious to intangibles like management quality or

sentiments

Not impacted by “statements”

Physical settlement

Internationally driven market

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Comparison of India Asset
Market

41
Thank you

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