CAPITAL MARKETS WITH

ESSENCE IN EQUITY MARKETS

A PROJECT SUBMITTED IN PART COMPLETION OF

Post Graduate Diploma in Business Administration (PGDBA)

BY
MR. VIRAL SARVAIYA

UNDER THE GUIDANCE OF

PROF. RAVI KAMATH

THAKUR INSTITUTE OF MANAGEMENT

STUDIES & RESEARCH
KANDIVILI (E), MUMBAI

MARCH 2007
 Certificate

This is to certify that the study presented by MR. VIRAL SARVAIYA to

Thakur Institute of Management Studies & Research in part completion of Post

Graduate Diploma in Business Administration (PGDBA) course under the title

CAPITAL MARKETS WITH ESSENCE IN EQUITY MARKETS has been

done under my guidance.

The project is in the nature of original work that has not so far been submitted

for any course of this Institute or any other Institute. References of work and

relative sources of information have been given at the end of the project.

Signature of the Candidate

(MR. VIRAL SARVAIYA)

Forwarded through the Research Guide

Signature of the Guide

(PROF. RAVI KAMATH)

 ACKNOWLEDGEMENT

With a deep sense of pride, satisfaction and gratitude, I present my project report

on:

"CAPITAL MARKETS WITH ESSENCE IN EQUITY MARKETS" At

this juncture, I feel deeply obliged to the most respected, Dr Uday Lajmi Director

of our Institute who provided me the required Infrastructure & guidance.

This project could not have seen the light of the day without the inspiring of Prof

Ravi Kamath who guided me like a beacon in the dark. I would like to thank him

for giving me his valuable time, suggestions and practical views throughout my

project work, without which the completion of the project would have been a

difficult journey.

Finally, I would like to end this acknowledgement by emphasizing on something

that I have learned from my interaction with people throughout my project.

"No effort or Knowledge ever gained is wasted"

 EXECUTIVE SUMMARY

Corporates raises capital from the financial market which includes foreign exchange market and
securities market of India. Security market of India is also termed as an Indian financial market
which includes government securities, derivative market, money market and capital market.
Government securities have lowest risk in financial market therefore unadventurous investors
prefer these securities for the investment. Derivative products use for minimize the risk in
investments. Money market and capital market are biggest place for investors for investment
and for corporate to raise the fund. Money market is use for a short term borrowing and short
term investment while capital market is preferred for long term borrowing and long term
investment.

This project is spotlighting capital market including both primary and secondary market. Under
primary market our attention area is initial public offer (IPO) including benefits and procedures
of IPO. In secondary market hub is on products of secondary market, structure of secondary
market, legal frame work of secondary market.

Letter of the project is focusing on activities of Bombay stock exchange and pros and cons of
stock market in India. This project also endeavors to direct the investor of a stock market.
 INDEX

SR NO TOPICS PAGE NO

1 Introduction to Capital Market 1-3

2 Constituents of capital markets 4-6

3 Classification of Financial Markets 7

4 IPO (Initial Public Offer) 8-13

5 A Guide to Read the Stock Table 14

6 Various Products Traded In 16-18

The Secondary Market

7 Structure Of Secondary Market In India 19

8 Legal frame work in secondary market 20-25

9 The Stock Exchange, Mumbai: An Introduction 26-31

10 Sensex - The Barometer of Indian Capital Markets 32-36

11 Trading At the Bombay Stock Exchange 37-43

12 Clearing & Settlement at Bombay stock exchange 44-50

13 Surveillance At The Bombay Stock Exchange 51-55

14 Dark – Side of Stock Markets 56-59

15 Bse on the Learning Curve 60-61

16 Charm of Investing In Equity 62-66

17 Six Qualities for Investment Success 67

18 How to Decide Whether to Invest 68-76

In A Particular Stock or No?