Professional Documents
Culture Documents
Mcncies 7 S Consortium-Securities-Ltd
Mcncies 7 S Consortium-Securities-Ltd
• Banking
• Insurance
• Securities brokerage
• Investment banking
• Securities trading
• Investment management or money management
• Securities analysis
• Financial planning
Investment industry in India:
To buy the shares investor has to open a trading and demat account. So
investor has to approach a broker/sub broker who has member ship in
Exchange(where the share is listed mainly NSE and BSE) and
depository(where share is kept in Demat form-Electronic form[mainly
CDSL and NSDL).
SENSEX and NIFTY are Index of BSE and NSE Blue chip share.
SENSEX consist of 30 share and NIFTY 50 share(of top most
companies) Index is the barometer of stock exchange forex in NSE there
are about 1350 listed companies listed and we cannot say in general form
market was up or down without fully looking all companies. INDEX
serve this purpose. INDEX is constructed by taking top companies
across different sector in different weightage and INDEX movement will
reflect the overall movement of market. So if NIFTY or SENSEX is up
we can generally assume market was up(does not mean all shares was up)
and vice versa. Now there are index in some sectors which can catch the
movement of that sector like CNXIT-IT sector, BANKNIFTY-Banking
sector etc. General purpose of Stock Market is for Investment but bulk of
activities done in market is day trading. Day trading means
BUYING/SELLING of shares and offsetting the position on same day.
Day traders serves the purpose of bringing the liquidity to market and
they help the market movement and more than 80% of the volume from
market is coming from day trading
Introduction of derivative market had made the day trading to grow more
and introduction of advanced day trading technique. The main tool for
Stock market investment/trading are Fundamental analysis -which studies
about the fundamental of companies and economy and Technical
Analysis-which studies the market by analyzing the past movement of
share and market.
Company profile
Consortium Securities Limited
Consortium is one of the leading broking houses in India that provides a
wide range of services nationwide to a substantial and diversified client
base that includes retail clients, high net worth individuals, corporate and
financial institutions. We are committed to our distinctive culture and
core values, which always place our client's interests first. Our values
emphasise integrity, transparency, commitment to excellence and
teamwork.
Promoters
Mr P.S. Kalra
The Chairman, Mr P. S. Kalra is one of the leading luminaries of the
stock broking arena of the northern region. A chartered accountant by
qualification, Mr Kalra has had extensive experience in taxation, finance
and company law before entering the stock broking field. He was the
Founder Director of Consortium Finance Ltd., a leading non-banking
finance company in North India. He is also a member of the institute of
internal auditors.
Mr Rohit Arora
Mr Rohit Arora is a chartered accountant with over 20 years of
experience in non – fund based financial services. He has advised fortune
1000 corporations on their India entry strategy including identifications,
negations and selection of joint venture partners.
Mr P Khurana
He is a chartered accountant (fellow member of the Institute of Chartered
Accountants of India and Institute of Chartered Accountants, England
and Wales) with over 28 years of experience. He was the Managing
director of Eternity Everest Ltd., Member of Belgian Eternity Group. Mr
Khurana was also the prinicipal with A.F. Ferguson & Company for eight
years.
live quotes,
charts,
research,
advice, and
online assistance
Facilities offered by us :
Live Online Back Office
Dematerialization Services
Inter and Intra depository transfer services
Electronic execution of DIS slips
Confirmation SMS’ from NSDL when stock moves in/out of your
Depository account.
Currency Derivatives
Currency trading was introduced in India in 2008 and is one of the fastest
growing segments. Consortium Securities Private Limited is a member of
both the currency exchanges - NSE Currency as well as MCX-SX
Currency.
Our Edge :
Pan India footprint
Trade Equities and Currencies in the same account and hedge your
foreign currency exposure
Online/Offline trading on ODIN as well as NOW (new NSEIT
platform)
Commodities:
As a member of MCX & NCDEX, we provide online/offline
commodities trading facilities for investors who are looking for the ease
and convenience and hassle free trading experience. Our state of the art
technology (fibre connections, VSAT network powered by Bharti, ODIN
trading engine, etc) ensure our clients the fastest and smoothest trade
execution.
Our Edge :
Pan India footprint
Ethical business practices
Single Trading Platform (ODIN powered by Financial
Technologies) for all your Commodities trading
Trade Anywhere & Anytime – Convenience of trading online from
home or calling/visiting a local office.
Powerful research and analytics – Intraday trading tips on Yahoo
Messenger & via SMS
Mutual Funds
Our Mutual Fund distribution division offers you the opportunity to
diversify your investment portfolio. Not only do we offer a choice of
investment schemes from all major mutual fund provides, we take this a
step further by helping investors chose the best mutual fund based on
their investment needs.
Our Edge :
Pan India Footprint (especially strong in North India)
Schemes of all major fund houses available
Access to latest news and Fund Manager view
Area of operation
Consortium securities provides a wide range activities nationwide to a
substantial and diversified client base that includes retail clients, high net
worth individuals, corporate and financial institutions. It has its presence
in more than 100 locations through its network of longstanding
franchisee’s and sub brokers.
Registered Office
36 Sant Nagar,
Near East of Kaliash,
New Delhi – 110065,
Ph: (011)-30845011/12, (011)-26422412/13
Fax: (011) 26224108.
Corporate Office
D-17 Sector-3,
Noida Dist.: Gautam Budh Nagar,
Uttar Pradesh - 201301,
Ph: (120) 3361500-09.
Other locations
Chandigrah
Delhi
Uttarnchal
West Bengal
Haryana
Himachal Pradesh
Karnataka
Rajasthan
Uttar Pradesh
Ownership pattern
Consortium securities is a private limited company dealing in the stock
broking . it was promoted by a group of professionals. The founder
members are
Mr P.S. Kalra
Mr Rohit Arora
Mr P Khurana
Late Mr Deepak Chowdhary
Competitors information
Religare Securities Ltd
Religare Securities Ltd. (RSL), a wholly owned subsidiary of Religare
Enterprises Limited (REL), a global financial services group is a market
leading securities firm in India.The company offers equity broking
services to more than half a million clients using both, offline and online
platforms and also offers depository participant services.RSL is a
member of the NSE, BSE, MCXSX, USE and a depository participant
with NSDL and CDSL. RSL employs more than 4800 employees and has
a wide distribution reach that spans across more than 1500 locations
India.
PCS Securities
PCS Securities, Inc. is a sales and brokerage firm that provides research
products to the institutional investment community. The company offers
research reports, data, and analysis focusing on global equity services,
short selling and special situations, arbitrage services, and behavioural
finance. Additionally, it offers sales and marketing services that include
assistance with marketing materials, strategic planning, and distribution
base expansion. The company was founded in 1989 and is based in
Edmonds, Washington. PCS Securities, Inc. operates as a wholly owned
subsidiary of Segment Research Systems, Inc., as of September 30, 2004.
Consortium securities has it head office at Uttar Pradesh and has its 15
branches spread over cities in India . the main server at the head office in
is connected by VSAT to NSE and BSE and all the branch offices are
connected by the branch network , VPN, VSAT and the INTERNET
The consortium have their branches all around India that branches have
the computers, telephones and a brad band internet services as their basic
necessity. They have a very comfortable space office to work with very
good infrastructure provided to both the front desk as well as the back
office executives .
Consortium securities use ODIN and NOW software technology and also
have their own separate accounting software for retrieving all the data
and information about their clients. While for portfolio management
service and mutual fund, there is different software .
The consortium securities over all provides the good and more
satisfactory infrastructure facility which keeps customer happy and also
employees and satisfactory all the time.
Work flow model :
The work flow model is used to describe the trading, clearing, and
settlement process of equities trading in the market. It is also known as
end to end model which is given below.
customer
buy sell
Transaction is settled
The above inception of the consortium securities limited has always been
growing and strengthening its products wit good services.
Structure:
Business needs to be organized in a specific form of shape that is
generally referred as organizational structure. Organization are structured
in a variety of ways, dependent on their objectives and culture. The
structure of the company often dictates the way it operates and performs.
Traditionally, the business have been structured in a hierarchical way
with several divisions and departments, each responsible for a specific
task such as human resources management, production or marketing .
many layers of management controlled the operations, with each
answerable to the upper layer of management.
CEO and MD
PRODUCT HEAD
REGIONAL HEAD
ZONAL HEAD
BRANCH MANAGER
Future and option
Depository and D-Mat
Currency trading
Mutual fund
Commodities trading
EXECUTIES
TRAINEES
Shared valves:
Shared valves are the core valves of the company that are evidenced in
the corporate culture and the general work ethics. The valves of
consortium are its core foundation for its excellence in its day to day
business operations which drives it towards the success. They are:
• Integrity
• Transparency
• Commitment to excellence
• Team work.
Style:
Style of leadership refers to the manner in which an individual uses his or
her talent, valves, knowledge, judgement, and attitudes to lead and relate
to others. Style express the person’s character. Style is the leadership
approaches of top management and the organization’s overall operating
approach; also the way in which the organizations employees present
themselves to the outside world, to suppliers and customers.
The company follows a top-down style of management where in the top
level managers would give instructions and the same is followed the
lower levels. However, at consortium they have a very pleasant and
cooperative culture where everyone’s ideas are respected and considered.
All are participative when it comes to working at the office so as to reach
the targets and meet the organizational goals jointly in the least possible
time.
Staff:
Organizations are made up of people and it’s the people who makes the
real differences to the success of the organization in the increasingly
knowledge based society. The importance of human resource as thus got
the central position in the strategy of the organization, away from the
traditional model of capital and land.
The people working in consortium securities have technical skills that are
required for the day to day operations in the company. There are nearly
150 workers working in consortium securities limited.
Skills:
Skills deals wit the strongest skills,, actual skills and competencies of the
employees working for the company and how they are monitored. A skill
is the ability, knowledge, undertaking, and judgement to accomplish a
task . skills may be defined as what the company does best; the
distinctive capabilities and competencies that reside in the organization.
Consortium securities have variety of skills in carrying out business. The
company has its distinctive competency in providing excellent investment
service and known for its strong and long standing relationship with
investors, other companies and its clients.
The company also has potential and proficient, technical and fundamental
analysis who help to analyse the market carefully and correctly before
any investment. The dealers at consortium securities are also well
qualified and fully trained. Thus, the skills which are the dominant
capabilities and core competencies possessed by the organization are very
much in parallel to organizational strategy, structure, systems, and the
culture.
SWOT ANALYSIS OF CONSORTIUM SECURITIES LIMITED
A SWOT analysis is a tool, used in management and strategy
formulation. It can help to identify the strengths, weakness, opportunities,
and threat’s of a particular company.
The swot analysis shown in figure
STRENGTHS :
• Consortium has a wide network of branches and franchisees spread
all over India to fulfil all investment needs of the customers.
• State of the art technology: technology is one of the biggest
strengths and the entire business process is driven by the latest
technology for easy, swift and secure transactions.
-Single Platform with shared limits for all your trading needs
-Trade Anywhere/Anytime – trade on the internet or call/visit a
local office.
-NEAT terminals in regional offices for faster execution of trades
-Private VSAT network powered by Bharti with Internet Backups
for worst case scenarios.
-CTCL network trading engine powered by Financial Technologies
(ODIN – market leader)
-Real-time access to back office and depository data.
- One of the first few adopter of new NSEIT platform (NOW)
OPPORTUNITIES:
• Scope for taking its business overseas and going global.
• Scope for increasing its branch network especially in the important
financial centres as well as extending its physical presence in other
parts of the country.
• Up gradation of the latest technology to give better and faster
services to its clients.
THREATS:
• The ever increasing and challenging neck-to-neck competition
specially with those established and existing reputed stock broking
companies.
• Uncertainty of the market and volatility and fluctuations in the
stock prices.
• Change in customer needs, preferences and taste.
• Threat from the new entrants into the field of stock broking.
Learning experience
With the help of the college requisition letter I approached many
companies and I got permission in consortium securities limited. This
opportunity makes me to learn from the company and peoples so the
peoples at consortium securities are very friendly and with the their help
and cooperation I could complete the project successfully . I understood
the stock market and how the orders are placing and how the trading is
done and how the brokers receives the order from the clients and execute
the order and how modify , how to cancel the order etc…
Consortium securities are a stock broking company I saw and learned
how the trading is done online using the various software’s , how the
records of the clients are maintained etc…
In the consortium securities daily the some customers coming and placing
the order and going back and they are discussing each together with
employees regarding stock market variations etc…
Part b
Statement of the problem :
Derivatives are have the product of futures in that the stock futures are
also the one of the various type. It indicate the future price and spot
price,
Does volatility in spot price increases with introduction of futures
trading in stock market.
Does the relationship between spot and futures stable?
Whether spot lead futures or futures lead spot.
So that’s the reason this project titled “ impact of futures trading on spot
price volatility – a case study on stock futures” has been taken up.
Scope of study:
Derivative products initially emerged, as hedging devices against
fluctuations in commodity process and commodity-linked derivatives
remained the sole form of such products almost three hundred years. The
financial derivatives came into spotlight in post – 1970 period due to
growing instability in the financial markets. However, since their
emergence these products have become very popular and by 1990’s they
accounted for about two-thirds of total transactions in derivative
products. In recent years , the derivatives market has grown tremendously
both in terms of variety of instruments available, their complexity and
also turnover. In the class of equity derivatives, futures and options on
stock indices have gained more popularity than on individual stocks,
especially among institutional investors who are major users of index-
linked even small investors find these useful due to high correlation of
the popular indices with various portfolios and ease of use.
The impact of futures on spot price volatility little consensus has
emerged. Further more hardly any study has been conducted so far to
examine the effect of futures trading on level of volatility with respect to
Indian market.
This study is done on the basis of assumed prices. This study pertains to
only future prices and spot prices. The future price and spot price are
taken for one or two years for purpose of calculation and the detailed
study is based on the secondary data available at national stock exchange.
Methodology:
Research design
This indicates plan of actions to be carried out in connection with the
proposed objective. It provides a guidance to enable to keep track of
action in order to achieve the goals. this is descriptive study in which an
attempt is made to evaluate the future trading of derivatives and their
impact on the spot price. It includes data collection and the job done as a
the study is conducted on the aspects like:
Detail study about stock futures.
Future trading on spot price volatility.
Sources of data:
The study was made through literature collected from the secondary data
which available through different media’s which are as follows.
Internet
News papers
Text books
Websites
NCFM books
Review of literature:
Study on derivatives
Derivatives is a contract underlying where value is derived from the valve
of the underlying asset can be index, securities, commodities, currency,
live stock etc… derivatives are contractual in nature. They give the
facility to buy or sell the underlying at a pre specified price and time.
Products in derivatives :
Derivatives have many products like forwards, futures, options, swaps,
swaptions, etc.
Contract value is the value of the contract and its calculated as-
Contract value = future price * lot size.
Minimum contract value:
Exchange has recommended that the minimum contract value of
derivative contracts traded in the Indian markets should fixed not below
Rs 2,00,000 .
Life of derivatives:
The life of derivatives is limi9ted and at any point of time there are three
contracts available for trading one month, two month, three month. The
life of the derivative instruments of a particular month expires on the last.
Thursday and if trading doesn’t take place on that day then it is settled on
the previous day.
Lot size:
Lot size refers to the number of underlying securities in one contract.
Additionally, for stock specific derivative contracts SEBI has specified
that the lot size of the underlying individual security should be in
multiples of 100 and fractions, if any, should be rounded off to the next
higher multiple of 100.
Ex: if shares of TATA ltd are quoted at Rs. 500 each the minimum
contract size is Rs. 2,00,000, then the lot size for the particular script
stands to be 200000/500=2000 shares i.e. one contract in TATA ltd
covers 2000 shares.
Introduction:
Over the last three decades, the de3rivatives market has seen a
phenomenal growth. A large variety of derivatives contracts have been
launched at exchanges across the world. Some of the factors driving the
growth of financial derivatives are:
1. increased volatility in asset prices in financial markets.
2. increased integration of national financial markets with the
international markets,
3. marked improvement in communication facilities and sharp decline
in their costs,
4. development of more sophisticated risk management tools,
providing economic agents a wider choice of risk management
strategies, and
5. innovations in the derivatives markets, which optimally combine
the risks and returns over a large number of financial assets leading
to higher returns, reduced risk as well as transaction costs as
compared to individual financial asset.
Derivative products:
Derivative contracts have several variants. The most common variants are
forwards, futures, options and swaps. We take a brief look at various
derivatives contracts that have come to be used.
Forwards:
a forward contact 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 forward contract is customized contract between two
entities, where settlement takes place on a specific date in the future at
today’s pre-agreed prices.
Options:
options are two types – calls and puts. Calls give the
buyer the right but not the obligation to buy a given quantity of the
underlying asset, at a given price on or before a given future date. Puts
give the buyer right, but not the obligation to sell a given quantity of
the underlying asset at a given price on or before a given date.
Warrants:
options generally have lives of up to one year, the
majority of options traded on options exchanges having a maximum
maturity of nine months. Longer-dated options are called warrants and
are generally traded over-the-counter.
LEAPS:
the acronym LEAPS means long – term equity
anticipation securities. These are options having a maturity of up to three
years.
Baskets:
Baskets options are options on portfolios of underlying
assets. The underlying asset is usually a moving average of a basket of
assets. Equity index options are a form of basket options.
Swaps:
Swaps are private agreements between two parties to
exchange cash flows in the future according to a prearranged formula.
They can be regarded as portfolios of forward contracts. The two
commonly used swaps are:
1.interest rate swaps: these entail swapping only
the interest related cash flows between the parties in the same currency.
2. currency swaps: these entail swapping both
principal and interest between the parties, with the cash flows in one
direction being in a different currency than those in the opposite
direction.
Swaptions:
swaptions are options to buy or sell a swap that will
become operative at the expiry of the options. Thus a swaptions is an
options on a forward swap. Rather than have calls and puts, the
swaptions market haw receiver swaptions and payer swaptions. A
receiver swaptions is an options to receive fixed and pay fbating. A
payer swaptions is an option to pay fixed and receive fbating.
Introduction To Futures:
future markets were designed to solve the problems that exist in forward
markets. a futures contract is an agreement between two parties to buy or
sell an asset at a certain time in the future at a certain price. but unlike
forward contracts, the futures contracts are standardized and exchange
traded. to facilitate liquidity in the futures contracts, the exchange
specifies certain standard features of the contract. it is standardized
contract with standard underlying instrument, a standard quantity and
quality of the underlying instrument that can be delivered,(or which can
be used for reference purposes in settlement) and a standard timing of
such settlement. a future contract may be offset prior to maturity by
entering into an equal and opposite transaction. more than 99% of futures
transaction are offset this way.
The standardized items in a futures contract are:
Quantity of the underlying
Quality of the underlying
The date and month of delivery
The units of price quotation and minimum price change
Location of settlement
Futures terminology:
Spot price : the price at which an asset trades in the spot market.
Futures price: the price at which at which the futures contract
trades in the futures market.
Contract cycle
Expiry date
Contract size
Basis
Cost of carry
Initial margin
Marking-to-market
Maintenance margin
Basis:
Basis is defined as the difference between spot and future price and there
will be difference basis for each delivery month. In a normal market,
basis will be positive. This indicates that futures price generally exceeds
spot rice.
Volatility:
Volatility is the rise or fall of a stock sharply in a set period. Volatility for
an option means the fluctuations in the price of the underlying from the
time the investor buys/sell an option and all till the expirations.
Volatility is typically calculated by using variance or annualized standard
deviation of the price or return. Highly volatile means that there are huge
swings in a very short period.