...DEMAT Dematerialisation is the process by which physical certificates of an investor are converted to an equivalent number of securities in electronic form. Rematerialization is the process of converting securities held in electronic form in a demat account back in physical certificate form. According to the Depositories Act, 1996, an investor has the option to hold securities either in physical or electronic form. Part of holding can be in physical form and part in demat form. However, SEBI has notified that settlement of market trades in listed securities should take place only in the demat mode. All types of equity/ debt instruments viz. equity shares, preference Shares, partly paid shares, bonds, debentures, commercial papers, certificates of deposit, government securities (G-EC) etc. irrespective of whether these instruments are listed / unlisted / privately placed can be dematerialized with depository, if they have been admitted with the depository. The depository system, which links the issuers, depository participants (DPs), Depositories and Clearing Corporation/ Clearing house of stock exchanges, facilitates holding of securities in dematerialised form and effects transfers by means of account transfers. This system which facilitates scripless trading offers various direct and indirect services to the market participants. A depository is an organisation which holds securities (like shares, debentures, bonds, government securities, mutual fund units...
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...of more efficient financial system. As a result of this NSDL and CDSL came into picture. It aims at ensuring the safety and soundness of Indian marketplaces by developing settlement solutions that increase efficiency, minimize risk and reduce costs. Our project on “Demat System in India” gave us a detailed picture of how securities are transferred electronically in the share market. In our project we had done a comparative study of the various Depository Participants in Ahmedabad on the basis of their services and charges. This study helped us in finding out what additional services other DPs provide and how the charges differ. Another aspect of our project was to get a feedback from the clients regarding the Demat services provided at Anagram Securities Ltd. By meeting the various clients we were able to find out the scope of improvement in the services provided at Anagram. It becomes increasingly important for students of management to understand the developments in the financial infrastructure that facilitates the whole financial system. We were fortunate enough to get an opportunity to do our summer training in such an area as it gave us a wide understanding of the entire demat system in our country....
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...Indian market overview: How stock market works? If you'd like to buy a share of stock in any publicly traded company you'll most likely need the services of a brokerage firm. Though it's possible to buy and sell shares of stock on your own, there are some practical and legal problems with this approach. The securities industry is highly regulated, so you can't just hang a shingle and start selling stocks to the general public, unless you're properly registered and licensed. A brokerage firm is a dealer of stocks and other securities that acts as your agent when you want to buy or sell stocks. Most trading of stocks happens on a stock exchange. These are special markets where buyers and sellers are brought together to buy and sell stocks. The best known stock exchanges are the Bombay Stock Exchange and the National Stock Exchange. The Bombay Stock Exchange is one of the largest stock exchanges in the world, listing over 4,500 companies. The BSE SENEX is the major stock index of the Bombay exchange, comparable to the DOW industrials in the US. The National Stock Exchange of India is also based in Mumbai (Mumbai used to be called Bombay) and regularly trades in volumes exceeding that of the Bombay Stock Exchange. The main stock index of the National Stock Exchange of India is the S&P CNX Nifty, or just Nifty for short. Apart from equities, the NSE also deals with trades of futures, debt and foreign currencies. When most people think of a stock exchange, they picture a scene of...
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...Chapter – I INTRODUCTION 1.Introduction of Project Work : Why Commodity Futures? ADVANTAGES OF FUTURES MARKET TO ITS VARIOUS PARTICIPANTS Stockiest / Jewelers / Farmers | | Traders, Jobbers & Arbitragers | * Can hedge their underlying * Get an extensive market * Can get loan against Warehouse Receipts | | Trading Opportunity | Investment Opportunity | Corporates | | Additional Advantage | * Can hedge by offsetting product exposure * Can hedge by parking only margin amount * Can buy goods without agents with Quality Assurance | | Spread Trading Opportunity | Arbitrage Opportunity | TABLE-1.1 Why Indian Commodity Exchange? India is essentially a commodity based economy constituting of Agriculture, Energy, Precious Metals and Base Metals. Couple of unique features / advantage seen in our exchanges, which is not seen elsewhere, are: 1. Timings: Our Trade timings are well matched with Global Market timings. 2. Number of commodities: Nowhere in the world more than 8 to 10 commodities are traded in a single exchange, but our exchanges are successfully managing over 40 commodities individually. Why Sharekhan? Superior & Consistant Research Performance of…. 1. Cutting Edge Analysis of Major Commodities 2. Relevent Analysis of Market News & Information 3. Sound Technical Analysis for Short Term Trends 4. Special Reports such as… * Hedge Solutions: To offset Product Exposure...
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...An index ETF is one where the underlying is an index, say Nifty. The APs deliver the shares comprising the Nifty, in the same proportion as they are in the Nifty, to the AMC and create ETF units in bulk (These are known as Creation Units). Once the APs get these units, they provide liquidity to these units by offering to buy and sell through the stock exchange. They give two way quotes, buy and sell quote for investors to buy and sell the ETFs. ETFs therefore have to be listed on stock exchanges. There are many ETFs presently listed on the NSE. 3.2 SALIENT FEATURES An Exchange Traded Fund (ETF) is essentially a scheme where the investor has to buy/ sell units from the market through a broker (just as he/ he would by a share). An investor must have a demat account for buying ETFs (For understanding what is demat please refer to NCFM module ‘Financial Markets : A Beginners’ Module). An important feature of ETFs is the huge reduction in costs. While a typical Index fund would have expenses in the range of 1.5% of Net Assets, an ETF might have expenses around 0.75%. In fact, in international markets these expenses are even lower. In India too this may be the trend once more Index Funds and ETFs come to the market and their popularity increases. Expenses, especially in the long term, determine to a large extent, how much money the investor makes. This is because lesser expenses mean more of the investor’s money is getting invested today and over a longer period...
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...INITIAL PUBLIC OFFER Initial Public Offering (IPO) is when an unlisted company makes either a fresh issue of securities or an offer for sale of its existing securities or both for the first time to the public. This paves way for listing and trading of the issuer’s securities. SPECAL 1.0 Book Building - About Book Building Book Building is basically a capital issuance process used in Initial Public Offer (IPO) which aids price and demand discovery. It is a process used for marketing a public offer of equity shares of a company. It is a mechanism where, during the period for which the book for the IPO is open, bids are collected from investors at various prices, which are above or equal to the floor price. The process aims at tapping both wholesale and retail investors. The offer/issue price is then determined after the bid closing date based on certain evaluation criteria. 1.1 The Process: • • • • • • • • The Issuer who is planning an IPO nominates a lead merchant banker as a 'book runner'. The Issuer specifies the number of securities to be issued and the price band for orders. The Issuer also appoints syndicate members with whom orders can be placed by the investors. Investors place their order with a syndicate member who inputs the orders into the 'electronic book'. This process is called 'bidding' and is similar to open auction. A Book should remain open for a minimum of 5 days. Bids cannot be entered less than the floor price. Bids can be revised by the bidder before...
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...INTRODUCTION Capital Market mainly refers to the Stock and Share market of the country. When banking system cannot totally meet up the need for funds to the market economy, capital market stands up to supplement it. Companies and the government can raise funds for long-term investments via the capital market. The capital market includes the stock market, the bond market, and the primary market. Securities trading on organized cap-ital markets are monitored by the government; new issues are approved by authorities of financial supervision and monitored by participating banks. Thus, organized capital markets are able to guarantee sound investment opportunities. This paper reveals the various aspects of the Capital Market in Bangladesh. OBJECTIVES Capital market, being an essential element of today’s economy, demands an intensive and special attention. The objective of this study is to look into every aspect of Bangladesh capital market and identify its various pros and cons along with some recommendations to overcome the existing problems. The specific objectives of this study are: ■ To give an overall idea about the capital market-its structures, functions, importance, etc. ■ To identify the current situations of our capital market of Bangladesh. ■ To provide a fully automated trading system with most modern amenities to ensure: quick, easy, accurate transactions and easily accessible to all. ■ To compare the relative conditions of Bangladesh capital market...
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...What are the different types of ratios you would use while analyzing the financial statements of a company? Give examples of each of these types. Answer 1: The different types of financial ratios used in the analyzing financial statements of a company are: 1. Liquidity Ratios 2. Leverage Ratios 3. Turnover Ratio 4. Profitability Ratio 5. Valuation Ratio Let us consider the Profit and Loss A/c and Balance Sheet of OM Enterprises Limited to illustrate the calculation of these ratios Profit and Loss Account of OM Enterprises Limited for the year ending on March 31, 2006 |PARTICULARS |AMOUNT (Millions) |AMOUNT (Millions) | |Net Sales | |350 | |Cost of goods sold | |245 | |i) Stock |175 | | |ii) Wages and salaries |30 | | |iii)Other manufacturing expenses |40 | | |Grofit profit | |105 | |Operating Expenses ...
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...Sub Section‐ I Issues by Indian Companies in India This sub‐section attempts to cover the basic concepts and questions related to issuance of securities by unlisted Indian companies1 offering the shares to public and by listed Indian companies2. For full particulars of laws governing primary markets, please refer to the Acts/Regulations/Guidelines appearing in the Legal Framework Section . FAQs are presented under following 12 broad headings. 1. Different kinds of issues 2. Types of offer documents 3. Issue requirements 4. Pricing of the issue 5. Understanding book building 6. Investment in Public/Rights issues 7. Categories of Investors 8. Intermediaries involved in the issue process 9. Guide to understand an offer document 10. SEBI’s role in an issue 11. New terms 12. Additional information 1 2 “Unlisted Company” means a company which is not a listed company. “Listed Company” means a company which has any of its securities offered through an offer document listed on a recognized stock exchange and also includes Public sector Undertakings whose securities are listed on a recognized stock exchange. 1 1. Different kinds of issues What are the different kinds of issues which can be made by an Indian company in India? Primarily, issues made by an Indian company can be classified as Public, Rights, Bonus and ...
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...SECURITIES What is meant by ‘Securities’? The definition of ‘Securities’ as per the Securities Contracts Regulation Act (SCRA), 1956, includes instruments such as shares, bonds, scrips, stocks or other marketable securities of similar nature in or of any incorporate company or body corporate, government securities, derivatives of securities, units of collective investment scheme, interest and rights in securities, security receipt or any other instruments so declared by the Central Government. What is the function of Securities Market? Securities Markets is a place where buyers and sellers of securities can enter into transactions to purchase and sell shares, bonds, debentures etc. Further, it performs an important role of enabling corporates, entrepreneurs to raise resources for their companies and business ventures through public issues. Transfer of resources from those having idle resources (investors) to others who have a need for them (corporates) is most efficiently achieved through the securities market. Stated formally, securities markets provide channels for reallocation of savings to investments and entrepreneurship. Savings are linked to investments by a variety of intermediaries, through a range of financial products, called ‘Securities’. Which are the securities one can invest in? Shares Government Securities Derivative products Units of Mutual Funds etc., are some of the securities investors in the securities market can invest in. Regulator ...
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...SUMMER TRAINING REPORT ON INVESTMENT STRATEGY OF INVESTOR IN STOCK MARKET AT Submitted in partial fulfillment of the requirements of Post Graduate Diploma in Business Management Under the guidance of Faculty guide Company guide Miss. Sudhi Sharma Mr. Prabhpreet Singh Submitted By: Priyanka Singh PGDM III SEM (2010-2012) Roll No. -1370 Dr. Gaur Hari Singhania Institute of Management Research Jaykaylon Colony, Kamla Nagar, Kanpur-208005 ACKNOWLEDGEMENT I would like to express my gratitude to all those who gave me the possibility to complete this project. I would like to thank my college authorities for providing me the opportunity to work with one of the most prestigious organization. I want to thank the Head of training department Prof. Sunil Gupta for giving me permission to commence this project in first instance, to do necessary research work. I would like to extend my thanks to Kotak Securities Ltd for granting me this project. My sincere thanks to Mr. Prabhpreet Singh, Branch Manager, Kotak Securities Ltd, Kanpur for his valuable suggestions and who has been a great source of inspiration for me to work hard with sincerity. I would also like to thank Miss. Saumya...
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...A PROJECT REPORT ON FINANCIAL SERVICES OF BANKS Submitted to University of Mumbai in Partial fulfillment Of the requirement of the Degree of B.Com ³BANKING & INSURANCE´ Under guidance of PROF. RUEEN PATEL VPM¶S K.G Joshi College of Arts N.G Bedekar College of Commerce Thane (E) Academic Year: 2010-11 BYJEMINI.J.PATIL ACKNOWLEDGEMENT In completing this project I am deeply conscious of my debt to all those, without whose warm support, enragement & guidance this project was not possible to complete. I am specially greatful to Prof Rueen Patel my guide to this project, She actually gave the life to this project and guidance of my parents & friends this project took shape. They also provided me much needed criticism & encouragement. Jemini Patil DECLARATION I am Jemini J. Patil studying in T.Y.Banking & Insurance hereby declare that I have done a project on ³Financial Services provided by Banks´. As required by the university rules, I state that the work presented in this thesis is original in nature and to the best my knowledge, has not been submitted so far to any other university. Whenever references have been made to the work of others, it is clearly indicated in the sources of information in references. Student (Jemini. J. Patil) Place: Thane Date: October, 2010 EXECUTIVE SUMMARY Banks are the Financial Institution which satisfies the individual & group goals with proper systems of rules, regulations, policies, services, procedures & strategies...
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...ISSN No-2230-7850 Vol.1,Issue.IX/Sept;11pp.1-4 Research Paper Technological Developments in Indian Banking Sector Dr. B.S. Sawant, Director, K.B.P. Institute of Management Studies and Research, Satara, Research Guide Abstract: Banking sector plays a significant role in development of Indian economy. So banks need to optionally leverage technology to increase penetration, improve their productivity and efficiency, deliver cost-effective products and services, provide faster, efficient and convenient customer service and thereby, contribute to the overall growth and development of the country. Technology enables increased penetration of the banking system, increases cost effectiveness and makes small value transactions viable. Besides making banking products and services affordable and accessible, its simultaneously ensures viability and profitability of providers. Technology allows transactions to take place faster and offers unparallel convenience through various delivery channels. Technology enhances choices, creates new markets, and improves productivity and efficiency. Effective use of technology has a multiplier effect on growth and development. In the area of payment systems, there have been significant advancements of technology on the customer transactions. India is one of the country that has effectively tackled huge volumes of paper instruments in cost effective manner. The Magnetic Ink Character Recognition (MICR) cheque clearing System, cheque transaction...
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...Internship Report On Effectiveness of DSE Monitoring System SUBMITTED TO: Md. Rafiqul Islam Professor Department of Business Administration Faculty of Business & Economics Daffodil International University SUBMITTED BY: Md. Nasir Uddin ID: 072-11-2038 BBA Department of Business Administration Faculty of Business & Economics Daffodil International University Daffodil International University September 10, 2011 Internship Report On Effectiveness of DSE Monitoring System Date of Submission: 10 September, 2011 4/2, Sobhanbagh, Prince Plaza, Mirpur Road Dhanmondi, Dhaka-1207, Bangladesh LETTER OF TRANSMITTAL August 10, 2011 Md. Rafiqul Islam Professor Internship Supervisor Department of business administration Daffodil International University Subject: Submission of internship report. Dear Sir, This is my pleasure to present my internship report entitled “Effectiveness of DSE Monitoring System” Which was prepared from my experience in Dhaka Stock Exchange. With your kind supervision I believe that the knowledge and experience gathered...
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