A

Summer Training Project Report

On
INVESTORS BEHAVIOUR ON STOCK MARKET AT RELIGARE SECURITIES LIMITED
Submitted in partial fulfillment for the award of MBA Degree

(Approved b AICTE! A""i#iated to Uttara$%and Tec%nica# Univer&it and '() Gar%*a# Univer&it + ACADEMIC SESSI,( (-../0-.1.+

Submitted to2 Mr&3 TWEENA PANDEY

Submitted b 2
NADEEM AHMAD

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To Whom It May Concern

"hi$ i$ to %ertif& that Mr3 (adeem a%med' of !ttran%hal In$titute of Management for the $e$$ion ())*+ (),)' ha$ %ompleted the pro-e%t report titled I(5EST,R6S )E'A5I,UR ,( ST,C7 MAR7ET AT RELIGARE SECURITIES LIMITED8 $ati$fa%tor& and not %opied from an&where to the be$t of m& 1nowledge/ Date2 under m& $uper.i$ion' a$ a part of partial fulfillment for the award of MBA Degree/ 0i$ report i$

Signature

Project Supervi&or M&3 T*eena Pande Lecturer Deptt20 Management UIM! De%radun

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AC7(,9LEDGEME(T

I would li1e to e3pre$$ m& ineptne$$ to M&3T*eena pande for her out$tanding %ontribution to m& pro-e%t/ She i$ the figure who ha$ alwa&$ $upported me and en%ouraged me to wor1 hard/ I don4t ha.e word$ to e3pre$$ m& gratitude for her guidan%e' but will alwa&$ follow her prin%iple$/ I am than1ful to Mr3 Ab%a Deo# 5 M&3 E&%a A%uja of Re#igare Securitie& Limited' for there guidan%e and pre%iou$ time at e.er& le.el of thi$ $tud&/ "he& ha$ been a $our%e of in$piration and a %au$e of %on.i%tion$ and %ompul$ion/ I al$o than1 m& friend$ for their moral $upport to a%%ompli$h the pro-e%t wor1/ I than1 the uttaran%hal In$titute of Management'dehradun for pro.iding the te%hni%al $upport/

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PRE;ACE

I ha.e a great plea$ure in pre$enting thi$ wor1 a$ a part of the "wo &ear$ full time MBA DEGREE PROGRAM3 Ob-e%ti.e of m& wor1 initiated when I %ame a%ro$$ .ariou$ di$%u$$ion$ in the finan%ial mar1et$/ Indian deri.ati.e$ mar1et i$ &et to rea%h it$ pea1 le.el/ "here i$ $till a la%1 of 1nowledge about deri.ati.e$' among$t the ma-orit& of mar1et pla&er$/ 0igh degree of .olatilit& in the re%ent time$ in the Indian mar1et ha$ led to de.elopment of more and more $ophi$ti%ated 0edging' Spe%ulation and Arbitrage te%hni6ue$ and $trategie$/ "he$e $trategie$ are e3ten$i.el& u$ed b& "rader$' Ri$1 Manager$' and Portfolio Manager$/

Ob-e%ti.e of thi$ pro-e%t i$ to pre$ent and anal&7e .ariou$ deri.ati.e $trategie$ in different mar1et $ituation$ for pla&er$ of different profile$/
"he $tud& would fa%ilitate the reader in ma1ing $ound in.e$tment de%i$ion$/ "hi$ would help him %hoo$e the right deri.ati.e$ $trateg& in different mar1et %ondition$/ "hi$ wor1 i$ intended to be u$eful for re$ear%her$' trader$' portfolio manager$' finan%ial in$titution$' mutual fund$' %orporate and $tudent finan%e/

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CONTENTS
S. No.
13 -3 :3 <3 >3 =3 43 /3 @3 1.3 113 1-3 1:3 1<3 1>3 1=3 143 1/3 1@3 -.3 -13 --3 -:3 Page > of 4/

TOPICS
Certi"icate Ac$no*#edgement Pre"ace Ab&tract E?ecutive Summar Introduction Compan Pro"i#e )rand Identit Re#igare ,""ering& Sc%eme& 'i&tor ," Stoc$ Mar$et In India Meaning A Importance o" Stoc$ E?c%ange ;unction& o" Stoc$ Mar$et Concept ," Stoc$ E?c%ange Current Situation ;actor& Securitie& Regu#ation Data Ana# &i& Conc#u&ion Inve&tor Protection Mea&ure& Sugge&tion& )ib#iograp% Bue&tionnaire

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A)STRACT

"hi$ $tud& gi.e$ &ou an o.er.iew of the .ariou$ apital Mar1et In$trument$8 with empha$i$ on the E6uit&' $pe%iall& Mid%ap$ and penn& $to%1$ who4$ P9E i$ le$$er/ "he $tud& throw$ $ome light on the o.er.iew of the Global Sto%1 Mar1et S%enario/ It gi.e$ &ou an Introdu%tion about the Sto%1 Mar1et Introdu%tion and Bro1erage firm role in $e%uritie$ Mar1et' .ariou$ term$ u$ed in it and the t&pe$ of Mar1et Parti%ipant' who u$e the$e In$trument$/ "he ba$i% purpo$e of thi$ pro-e%t i$ anal&7e In.e$tor:$ beha.ior on $to%1 mar1et' and al$o bu&ing and $elling pattern$ and time for that/ 0owe.er' ma-or .olume$ are related to Re$ear%h on $ome $to%1 $trateg& in e6uit& $elling whi%h i$ a ma-or part of E6uit& mar1et/ I ha.e dealt e.er& a$pe%t of mar1et from the beginning/ Ba$i% purpo$e of the pro-e%t i$ ma1e profit$ or minimi7e$ lo$$e$ on e6uit& trading/ apital Mar1et in India' a$ well a$ the

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ECECUI5E SUMMARD
apital i$ the ba%1 bone of the indu$trial de.elopment of a %ountr&/ In fa%t' %apital a%%umulation and e%onomi% growth ha.e a high degree of po$iti.e %orrelation and addition to the $to%1 of %apital %an pro.o1e and fa%ilitie$ fa$ter rate of growth e.en under the %ir%um$tan%e$ whi%h %an be de$%ribed a$ $hortage of %apital/ 0igh rate$ of %apital formation normall& re$ult in the rapid growth of output in%ome and emplo&ment/ apital a%%umulation depend$ e$$entiall& on the high rate of $a.ing/ But nearl& generation of more $a.ing in it$elf i$ not $uffi%ient for the fulfillment of the de$ire end of rapid indu$trial growth and re$ultant e%onomi% de.elopment/ A proper utili7ation of %ommunit& $a.ing i$ a pre%ondition/ "hi$ re6uire$ a well organi7ed %apital mar1et/ A well organi7ed and effe%ti.e effi%ient $to%1 mar1et i$ the mo$t important fa%tor for the e%onomi% de.elopment of the %ountr&/ "he $to%1 e3%hange pro.ide for the inter $tru%tural $upport $o .ital for the e%onomi% demo%ra%& along with a planned indu$trial de.elopment/ "he pre$ent pro-e%t report i$ an attempt to $tud& the de.elopment' rule$' law$' pri%e mo.ement and the problem of Indian $to%1 mar1et/ Attempt are made to e3amine and anal&7e the fa%tor$ and for%e$ whi%h influen%e and go.ern$ the $to%1 mar1et in general and to pro.ide appropriate $ugge$tion to eliminate problem/

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I(TR,DUCTI,(

;inan%e i$ the lifeblood of e.er& bu$ine$$/ Modern mone& e%onom& i$ totall& ba$ed on finan%e/ ;inan%e i$ needed for the produ%tion of good$ and $er.i%e$ a$ well a$ their di$tribution/ A bu$ine$$ need$ finan%e to %ommen%e it$ operation' to %ontinue operation$ and for their e3pan$ion and moderni7ation of bu$ine$$/ ;inan%e %ontrol$ the poli%ie$ ' a%ti.itie$ and the de%i$ion of e.er& bu$ine$$/ Sound finan%ial $&$tem i$ a$ important a$ mar1eting of good$/ ;inan%ing of bu$ine$$ i$ an important fun%tion of e.er& bu$ine$$ organi7ation'/ It in.ol.e$ all tho$e a%ti.itie$' whi%h are %on%erned with the pro%urement and utili7ation of fund/ It i$ the pro%e$$ of ,/ E$timating the finan%ial re6uirement of bu$ine$$ (/ Rai$ing ade6uate fund for profitabilit&' $ol.en%& and li6uidit& </ Mobili7ation of $a.ing$ =/ Admini$tration i/e/ optimum utili7ation of fund >/ anali7ation of $a.ing$ into in.e$tment/ "hu$' it deal$ with the arrangement of ade6uate amount of %apital to a%hie.e the ob-e%ti.e of enterpri$e/ "he bu$ine$$ %an not run effi%ientl& if it doe not ha.e ade6uate finan%e to meet hi$ re6uirement' depending upon bu$ine$$/ ;rom whate.er $our%e it ma& meet it$ re6uirement2 it would fall in either of two %ategorie$ .i7/ internal $our%e and e3ternal $our%e/ Internal $our%e are tho$e' whi%h are a.ailable to an enterpri$e internall& and whi%h are under the full %ontrol of the %ompan&/ "he& ma& in%lude $elf finan%ing' re$er.e' and retained earning/ E3ternal $our%e are tho$e $our%e$' whi%h are out$ide the %ontrol of the %ompan&/ "he& ma& %o.er %ommon $to%1' proffered $to%1' publi% depo$it$ and loan$/ "he fir$t re6uirement of e.er& organi7ation i$ to ha.e an in%rea$e in the .olume of real $a.ing$ for a%hie.ing a warranted rate of in.e$tment with %ontain inflation or with relati.e pri%e $tabilit&/ "he %ru%ial $tep of mobili7ation of $a.ing $hould not be identified with monetar& finan%ing of in.e$tment/ "he $u%%e$$ of the finan%ial in$titution$ lie$ in their ma1ing a.ailable the mean$ to utili7e the $a.ing$/ Although the e3i$ten%e of de.eloped mone& and %apital mar1et and finan%ial intermediarie$ wor1 a$ a $our%e for the %olle%tion and di$tribution of in.e$tible fund' but the& do not redu%e the need for real $a.ing /?ow almo$t in ea%h and e.er& %ountr& the in$titutional arrangement for $uppl& of finan%e ha.e been Page / of 4/ RELIGARE SE !RI"IES LIMI"ED#

introdu%ed and are a.ailable and a la%1 if finan%e i$ not a .er& $eriou$ hindran%e in wor1ing a$ all 1ind of lender$' borrower$' are being a.ailable to $ol.e the problem of finan%e/ It will generate the growth of finan%ial intermediarie$ and lending in$titution$/ ?ewl& firm$ ha.e to depend $olel& on the e3ternal $our%e a$ the internal $our%e are the re$ult of bu$ine$$ operation/ "he rai$ing of fund$ e3ternall& automati%all& in.ol.e$ the firm in the mone& in the %apital mar1et/ "he$e de%i$ion$ are affe%ted b& the %o$t and a.ailabilit& of alternati.e $our%e$/ "here are number of in$titution and interment$ a.ailable for rai$ing the fund$ e3ternall&/ one of the$e in$trument$ i$ the %ommon $to%1' whi%h probabl& i$ the mo$t popular and mo$t widel& u$ed toll for rai$ing fund$/ "he finan%ial $&$tem in an e%onom& pla&$ the %ru%ial role in allo%ating the inge$tible re$our%e$ to produ%ti.e u$e$ and thereb& a%%elerate$ the rate of e%onomi% de.elopment/ It %ompri$e$ of four prin%iple %on$tituent$ namel& the ;inan%ial Mar1et' ;inan%ial In$titution$' ;inan%ial In$trument$' ;inan%ial $er.i%e$/ ;inan%ial $&$tem refer$ to a $et of %omple3 an %lo$el& %onne%ted in$titution$' agent$' pra%ti%e$' mar1et$' tran$a%tion$ an %laim in e%onom&/ ;inan%ial in$titution$ are bu$ine$$ unit$' whi%h organi7e the mobili7ation of $a.ing$ and de.elopment of %redit/ "he$e finan%ial in$titution$ offer .ariou$ finan%ial $er.i%e$/ ;inan%ial mar1et on other hand i$ the %enter$ that pro.ide fa%ilitie$ for trading finan%ial %laim$ and $er.i%e$/ "he parti%ipant$ of the$e mar1et$ are finan%ial in$titution$' agent$' bro1er$' dealer$' lender$ and man& other$/ "he finan%ial mar1et$ $er.e the e%onom& b& %reating and tran$ferring the finan%ial a$$et$ $u%h a$ trea$ur& bill$' go.ernment an %orporate $e%uritie$ et%/ "he$e ;inan%ial mar1et$ are %la$$ified into2 Mone& mar1et$' %apital mar1et$' go.ernment $e%uritie$ mar1et' howe.er' all the$e mar1et$ %an be grouped under primar& a$ well a$ $e%ondar& mar1et/ "he primar& mar1et deal$ in new finan%ial $e%uritie$/ "herefore the$e all al$o referred to a$ new i$$ue mar1et/ "he $e%ondar& mar1et deal$ in trading the $e%uritie$ alread& e3i$ting/ "he mone& mar1et meet$ the wor1ing %apital need$ of a produ%ti.e unit with $hort term in.e$tment$ $u%h a$ bill$ of e3%hange' %ommer%ial paper$' et%/ Go.ernment $e%uritie$ mar1et meet$ the $hort term and medium term need$ of the go.ernment with it$ $e%uritie$ li1e trea$ur& bill$' bond$' et%/ "he %apital mar1et howe.er $e%ure the long term need$ of the %orporate enterpri$e$ b& fa%ilitating to ri$e the fund$ through $hare$ and debenture$ et%/ "herefore the %apital mar1et e$tabli$he$ the mat%hing %on%ept$ through mobili7ation of fund$ Page @ of 4/ RELIGARE SE !RI"IES LIMI"ED#

from $a.er$ who e3pe%t appropriate return of there in.e$tment' to ma1e u$e of them for finan%ing their pro-e%t$ and thi$ help$ in the pa%e of e%onomi% de.elopment/ "he $tru%ture and growth of Indian %apital %an be e3amined from the phenomenal growth in infra$tru%ture' .olume of %apital mobili7ed' mar1et %apitali7ation$ and number of inno.ati.e in$trument$ floated during the la$t four de%ade$/ ;urther' the a%ti.e role of the regulating bodie$ an the .ariet& of their guideline$ for effi%ient wor1ing of the Indian %apital mar1et re.eal$ the dire%tion of growth and it$ %omple3it& M& pro-e%t title i$ ROLE O; S"O @ EA 0A?GE I? E O?OMI DEBELOPME?"/ I did m& $ummer training in Religare $e%uritie$ limited/ "he ob-e%ti.e$ of %hoo$ing thi$ pro-e%t are2C ,/ under$tand the %on%ept of $to%1 e3%hange (/ fa%tor$ affe%ting the pri%e$ of $hare$ </ find out the problem$ of $to%1 e3%hange

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C,MPA(D PR,;ILE
RELIGARE Securitie& Ltd3 (RSL+ i$ a wholl& owned $ub$idiar& of RELIGARE ;inan%ial Ser.i%e$ Ltd/ D;RSLE' a ompan& promoted b& the late Dr/ Par.inder Singh' E3C MD of ompan& i$ a member of the ?ational Sto%1 Ranba3& Laboratorie$ Ltd/ "he primar& fo%u$ of RSL i$ to %ater to $er.i%e$ in apital Mar1et Operation$ to In$titutional In.e$tor$/ "he E3%hange D?SEE and O" EI/ "he growing li$t of finan%ial in$titution$ with whom RSL i$ empanelled' a$ appro.ed Bro1er i$ a refle%tion of the high le.el$ of $er.i%e$ maintained b& the ompan&/ A$ on date the ompan& i$ empanelled with !"I' IDBI' I; I' SBI' BOICM;' Pun-ab ?ational Ban1' P?BCM;' Oriental In$uran%e' GI ' !"ICOff$hore' I I I anban1 M;' Pun-ab 5 Sind Ban1' Pioneer I"I' S!? ;5 ' IDBI Prin%ipal' Prudential I I I' I?G Baring and F M Mutual ;und/ RELIGARE wa$ founded with the .i$ion of pro.iding integrated finan%ial %are dri.en b& the relation$hip of tru$t/ "he bou6uet of $er.i%e$ offered b& RELIGARE in%lude$ Bro1ing DSto%1$ and ommoditie$E' Depo$itor& Parti%ipant Ser.i%e' Ad.i$or& on Mutual ;und In.e$tment$ and Portfolio Management Ser.i%e$/ RELIGARE i$ a pioneer in the %on%ept of partner$hip to rea%h multiple lo%ation$ in order to effe%ti.el& $er.i%e it$ large ba$e of indi.idual %lient$/ Be$ide$ the rea%h of RELIGARE' the %lient$ of the %ompan& greatl& benefit b& it$ $trong re$ear%h %apabilit&' whi%h en%ompa$$e$ fundamental$ a$ well a$ te%hni%al/

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,UR )RA(D IDE(TITD

Re#igare 5ISI,(2
HEALTH thru Fort ! Hea"thcare L m te# & WEALTH thru Re" $are Sec%r t e! L m te#&

(ame
Religare i$ a Latin word that tran$late$ a$ Gto bind togetherG/ "hi$ name Religare wa$ %ho$en to refle%t the integrated nature of the finan%ial $er.i%e$ the %ompan& offer$/ "he name i$ intended to unite and bring together the phenomenon of mone& and wealth to %oCe3i$t and $er.e the intere$t of indi.idual$ and in$titution$' ali1e/

S mbo#
"he name i$ paired with the $&mbol of a fourCleaf %lo.er' a rare mutation of the %ommon threeCleaf %lo.er/ "raditionall&' it i$ %on$idered good fortune to find a four leaf %lo.er a$ "here i$ onl& one fourCleaf %lo.er for e.er& ,)'))) threeCleaf %lo.er$ found/ Ea%h leaf of the fourCleaf %lo.er ha$ a $pe%ial meaning in the $phere of Religare/ "he fir$t leaf of the %lo.er repre$ent$ 0ope/ "he a$piration$ to $u%%eed' "he dream of be%oming' Of new po$$ibilitie$/ It i$ the beginning of e.er& $tep and the foundation$ on whi%h a per$on rea%he$ for the $tar$/ "he $e%ond leaf of the %lo.er repre$ent$ "ru$t/ "he abilit& to pla%e one$ own faith in another' to ha.e a relation$hip a$ partner$ in a team/ "o a%%ompli$h a gi.en goal with the balan%e that bring$ $ati$fa%tion to all not in the binding but in the bond that i$ built/ "he third leaf of the %lo.er repre$ent$ are' "he $e%ret ingredient that i$ the %ement in e.er& relation$hip/ "he truth of feeling that underline$ $in%erit& and the triumph of diligen%e in e.er& a$pe%t/ ;rom it $pring$ true warmth of $er.i%e and the abilit& to adapt to e.ol.ing en.ironment$ with %on$ideration to all/

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"he fourth and final leaf of the %lo.er repre$ent$ Good ;ortune/ Signif&ing that rare abilit& to meld opportunit& and planning with %ir%um$tan%e to generate tho$e often loo1ed for remunerati.e moment$ of $u%%e$$/ 0ope' "ru$t' are' Good fortune/ All element$ perfe%tl& %ombine in the emblemati% and rare' fourCleaf %lo.er to .i$uall& $&mboli7e the .alue$ that bind together and form the %ore of the Religare .i$ion

GR,UP
RELIGARE in re%ent &ear$ ha$ e3panded it$ rea%h in finan%ial $er.i%e$ wherein it ha$ multiple finan%ial $er.i%e$ $u%h a$ $e%ondar& mar1et e6uit& $er.i%e$' portfolio management $er.i%e$' depo$itor& $er.i%e$ et%/ RELIGARE finan%ial $er.i%e$ group %ompri$e$ of ;orti$ Se%uritie$ Limited' RELIGARE omde3 Limited and RELIGARE ;ine.e$t Limited whi%h pro.ide $er.i%e$ in E6uit&' ommodit& and ;inan%ial Ser.i%e$ bu$ine$$/

RELIGARE SECURITIES LIMITED

,/ (/ </ Member of ?ational Sto%1 E3%hange of India and Bomba& Sto%1 E3%hange of India/ Depo$itor& Parti%ipant with ?ational Se%uritie$ Depo$itor& Limited D?SDLE and entral Depo$itor& Ser.i%e$ Limited( DSLE/ A SEBI appro.ed Portfolio Manager/ RSL pro.ide$ platform to all $egment$ of the in.e$tor to le.erage the immen$e opportunit& offered b& e6uit& in.e$ting in India either on their own or through managed fund$ in Portfolio Management/

RELIGARE Comde? Limited

Member of ?ational ommodit& Deri.ati.e E3%hange and Multi ommodit& E3%hange ; L pro.ide$ platform to both agro and non agro %ommodit& trader$ to deri.e the a%tual pri%e of the %ommodit& and al$o to trade and hedge a%ti.el& in the growing %ommodit& trading mar1et in India/

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RELIGARE inve&t Limited

A RBI appro.ed ?onCban1ing finan%e %ompan&/ R;L pro.ide$ fund ba$ed finan%ial $er.i%e$ $u%h a$ loan again$t $hare$' IPO finan%ing and other allied $er.i%e$/ RELIGARE i$ a trul& profe$$ional %orporate ba%1ed finan%ial $er.i%e pro.ider with .er& $ound finan%ial ba$e and ba%1ing/ RELIGARE i$ managed b& team of highl& $1illed profe$$ional who ha.e pro.en tra%1 re%ord in their re$pe%ti.e domain$/ RELIGARE ha$ the wide$t rea%h in India through it$ Regional' Honal and Bran%h Offi%e$ $pread a%ro$$ the %ountr&

Product A Service&
E6uit& "rading Deri.ati.e "rading ommodit& "rading Depo$itor& Ser.i%e$ Margin ;inan%ing ?RI + De$1 Management Pri.ate lient Management Re$ear%h 5 "e%hni%al Anal&$i$ Portfolio Management Ser.i%e$

)USI(ESS A ,PERATI,(S )USI(ESS

O.er a period of time RSL ha$ re%orded a health& growth rate both in bu$ine$$ .olume$ and profitabilit& a$ it i$ one of the ma-or pla&er$ in thi$ line of bu$ine$$/ "he bu$ine$$ thru$t ha$ been mainl& in the de.elopment of bu$ine$$ from ;inan%ial In$titution$' Mutual ;und$ and orporate/

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,PERATI,(S
"he operation$ of the %ompan& are broadl& organi7ed along the following fun%tion$/ Re&earc% A Ana# &i& "hi$ group i$ fo%u$ed on doing dail& $to%1 pi%1$ and periodi%al $%rip $egment $pe%ifi% re$ear%h/ "he& pro.ide the be$t of anal&$i$ in the indu$tr& and are .alued b& both our In$titutional and Retail %lientele/

Mar$eting
"hi$ group i$ fo%u$ed on tra%1ing potential bu$ine$$ opportunitie$ and %on.erting them into bu$ine$$ relation$hip$/ E.aluating the need$ of the %lient$ and tailoring produ%t$ to meet their $pe%ifi% re6uirement$ help$ the %ompan& to build la$ting relation$hip$/

Dea#ing
Enabling the %lient$ to pro%ure the be$t rate$ on their tran$a%tion$ i$ the %ore fun%tion of thi$ group/

)ac$ ,""ice
"hi$ group en$ure$ timel& deli.erie$ of $e%uritie$ traded' liai$on with $to%1 e3%hange authoritie$ on operational matter$' $tatutor& %omplian%e' handling ta$1$ li1e pa&Cin' pa&Cout' et%/ "hi$ $e%tion i$ full& automated to enable the $taff to fo%u$ on the te%hni%alitie$ of $e%uritie$ trading and i$ manned b& profe$$ional$ ha.ing long e3perien%e in the field/

Port"o#io Management Service&

"o a%hie.e the .i$ion of being a finan%ial %are partner + PMS di.i$ion i$ being %reated2 Dedi%ated attention 0igh Ser.i%e Standard$ Information Sharing E3%lu$i.el& fo%u$ed on Pri.ate lient$ hoi%e of Multiple Produ%t$

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7e ;eature&2
Profe$$ional Approa%h ontinuou$ portfolio monitoring Regular !pdate$ ?o ro$$ $ub$idi7ation of %o$t$ "ran$paren%& Performan%e lin1ed fee Lower E3pen$e$ Re%ent "a3 %hange$ + Ber& Attra%ti.e

I(;RASTRUCTURE ,""ice&
"he %ompan& ha$ offi%e$ lo%ated at prime lo%ation$ in Mumbai' ?ew Delhi' @ol1ata and hennai/ "he offi%e$ are %entrall& lo%ated to %ater to the re6uirement$ of in$titutional and %orporate %lient$ and retail$ %lient$' and for ea$e of operation$ due to pro3imit& to $to%1 e3%hange$ and ban1$/

Communication&
"he %ompanie$ ha$ it$ di$po$al an effi%ient networ1 of ad.an%e %ommuni%ation $&$tem and intend to in$tall RM fa%ilit&' be$ide$ thi$ it i$ implementing intera%ti.e %lient information di$$emination $&$tem whi%h enable$ %lient$ to .iew their late$t %lient information on web/ It ha$ an in$talled multiple IA? to inter%onne%t the bran%he$ to ommuni%ate on real time ba$i$/ "he %ompan& i$ e6uipped with mo$t ad.an%ed $&$tem$ to fa%ilitate $mooth fun%tioning of operation$/ It ha$ in$talled it$ ma-or appli%ation on IBM ma%hine$ and u$e$ late$t $tate of art finan%ial $oftware/

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MA(AGEME(T
Mr/ Sunil Godhwani i$ hief E3e%uti.e Offi%er and Managing Dire%tor of RELIGARE Se%uritie$ Limited/ 0e i$ al$o the EO 5 MD of the parent %ompan& RELIGARE ;inan%ial Ser.i%e$ Limited and i$ managing the entire operation$ of both the %ompanie$/ EO i$ $upported b& .ariou$ 0OD$ who are %reditable profe$$ional of their re$pe%ti.e field$ and the& are further wor1ing with team of profe$$ional$ %on$i$ting of hartered A%%ountant$' MBA$ with .aried e3perien%e in finan%ial $er.i%e$ and $to%1 bro1ing fun%tion$/

Corporate Structure
Our organi7ation i$ led b& indi.idual$ who are profe$$ional$ and leader$ in e.er& $en$e of the word/ E3pert$ in their re$pe%ti.e domain$' e$teem member$ of our Board of Dire%tor$ are2

Mr/ Mal.inder Mohan Singh C hairman D?on E3e%uti.eE Mr/ Sunil Godhwani C EO 5 Managing Dire%tor Mr/ Shi.inder Mohan Singh C ?on E3e%uti.e Dire%tor Mr/ 0arpal Singh C ?on E3e%uti.e Dire%tor Mr/Deepa1 Ram%hand Sabnani C Independent Dire%tor Mr/Padam Bahl C Independent Dire%tor Mr/F/I/ Balani C Independent Dire%tor Mr/ Balde. Singh Fohal C Independent Dire%tor Mr/ R/ @/ Shett& C Alternate to Mr/ F/ I/ Balani apt/G/P/S/Bhalla C Alternate to Mr/ Deepa1 Sabnani

DEP,SIT,RD PARTICIPA(T SER5ICES

RELIGARE Se%uritie$ Ltd/ ha$ al$o .entured into depo$itor& $er.i%e$ to %ater to it$ %lient$ and i$ among leading depo$itor& $er.i%e$ pro.ider$ ha.ing more than <))) $e%urit& under it$ %u$tod&/ Ih& $hould &ou %hoo$e RSL a$ &our finan%ial partnerJ A $ummar& of our %ompetiti.e ad.antage$K Page 14 of 4/ RELIGARE SE !RI"IES LIMI"ED# rore worth of

,/ Participant on t%e countr 6& premier e?c%ange 2 RELIGARE i$ a member of the %ountr&4$ premier $to%1 e3%hange + "he ?ational Sto%1 E3%hange of India D?SEE/ (/ C#earing member&%ip on Capita# A Derivative& &egment& 2 It ha$ %learing member$hip$ on both the apital Mar1et and Deri.ati.e$ $egment of the e3%hange/ Ie are al$o authori7ed to trade the retail debt mar1et/ </ Depo&itor Participant& *it% (SDL A CDSL 2 Ie are depo$itor& parti%ipant$ with the %ountr&4$ premier depo$itor& $er.i%e C ?ational Se%uritie$ Depo$itor& Limited D?SDLE' a$ well a$ with the onl& other depo$itor& with a %ountr&wide rea%h C Depo$itor& Ser.i%e$ Limited D DSLE/ =/ Leading private &ector ban$ a& partner2 Our ban1ing partner i$ 0D; Ban1 + "he foremo$t pri.ate $e%tor ban1 in the %ountr&' whi%h ha$ the mo$t te%hnologi%all& ad.an%ed infra$tru%ture in the %ountr&' with Internet ban1ing allowing a%%e$$ to information (= A L/ >/ )#oomberg In"ormation Service&2 "he world4$ two be$t information $er.i%e$ are Bloomberg LP and Reuters/ "he$e are prohibiti.el& e3pen$i.e for all but mutual fund$ and finan%ial in$titution$ to own terminal$ of' and $ub$%ribe to/ Ie howe.er ha.e two %onne%tion$ to the Bloomberg Information Ser.i%e' the premier $er.i%e' both in Delhi and Mumbai' and the$e pro.ide u$ information ahead of the general publi%' and at par with the finan%ial in$titution$/ A%%e$$ to brea1ing new$ from a%ro$$ the globe' and a%ro$$ a$$et %la$$e$' and $uperior re$ear%h and anal&$i$ %apabilitie$/ M/ Prime ,""ice Location&2 Ie ha.e prime offi%e lo%ation$ in the nation4$ politi%al %apital and the bu$ine$$ %apital + Delhi and Mumbai' in the heart of the %it&/ L/ Re&earc% Capabi#itie&2 Ie ha.e a dedi%ated team of anal&$t$ in our Bomba& offi%e + "he& pro.ide fundamental anal&$i$ of $to%1$ and mar1et$' whi%h are fundamentall& $trong' and pro.ide abo.e mar1et return$ to in.e$tor$' but o.er a $lightl& longer time frame + "&pi%all& M month$ and abo.e/ */ Tec%nica# Ana# &i&2 A dail& te%hni%al new$letter i$ publi$hed b& our inChou$e te%hni%al anal&$t' who i$ a re%ogni7ed leading pra%titioner of the $%ien%e/ 0e ha$ a entral

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$u%%e$$ rate of o.er L<N/ 0e tra%1$ the progre$$ of the %all$ on a realCtime ba$i$' and ad.i$e$ of an& %hange in the profit point$ or $top lo$$ le.el$/

O/ A## Service& under one roo"2 India ha$ mo.ed to a "P( $ettlement $&$tem' where all
trade$ and $ettled on a rolling ba$i$/ 0owe.er thi$ gi.e$ the %lient$ no time to arrange deli.erie$ to their bro1er' through a $eparate depo$itor& parti%ipant/ RELIGARE' being a tradingC%learing member' as well as a depo$itor& parti%ipant' allow$ $eamle$$ tran$fer of $e%uritie$ under the $ame roof' with minimum dela&' and %on$tant monitoring/

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,;;ERI(G ,; RELIGARE
Portfolio Management Ser.i%e$ International Ad.i$or& In$titutional Bro1ing Ser.i%e$ In.e$tment Ban1ing E6uit& 5 Deri.ati.e$ Depo$itor&

Depo&itor
RSL pro.ide$ depo$itor& $er.i%e$ to in.e$tor$ a$ a Depo$itor& Parti%ipant with ?SDL and DSL/ "he Depo$itor& $&$tem in India lin1$ i$$uer$' Depo$itor& Parti%ipant$' Depo$itorie$ ?ational Se%uritie$ Depo$itor& Limited D?SDLE and Limited D DSLE and %learing hou$e$ 9 %learing pro%e$$ed b& mean$ of a%%ount tran$fer/ entral Depo$itor& Ser.i%e$ DIndiaE orporation of Sto%1 E3%hange$/ "he$e

fa%ilitate holding of $e%uritie$ in demateriali7ed form and $e%uritie$ tran$a%tion$ are

EEuit A Derivative& R0ALLD

"rading in E6uitie$ with Religare trul& empower$ &ou for &our in.e$tment need$/ Ie en$ure &ou ha.e a $uperlati.e trading e3perien%e through C ,/ A highl& pro%e$$ dri.en' diligent approa%h (/ Powerful Re$ear%h 5 Anal&ti%$ and </ One of the be$t in %la$$# dealing room$ ;urther' Religare al$o ha$ one of the large$t retail networ1$' with it$ pre$en%e in more than ,<)) lo%ation$ a%ro$$ more than =)) town$ 5 %itie$/ "hi$ mean$' &ou %an wal1 into an& of Page -. of 4/ RELIGARE SE !RI"IES LIMI"ED#

the$e bran%he$ and %onne%t to our highl& $1illed and dedi%ated relation$hip manager$ to get the be$t $er.i%e$/

'o* *i## *e ma$e trading ea&ier and betterF Per$onal A$$i$tan%e Dedi%ated Relation$hip Manager$ Dedi%ated dealer$ who fa%ilitate trading and $er.e &our po$t trade need$

Re&earc% and Advi&or

Ie at Religare belie.e in pro.iding re$ear%h $er.i%e$ for %lient$ to fa%ilitate their in.e$tment de%i$ion$' with $tri%t empha$i$ on $elfCregulation' a.oiding po$$ible %onfli%t of intere$t in ob-e%ti.it&/ Dri.en b& ethi%al bu$ine$$ pra%ti%e$' we 1eep a haw14$ e&e on the mar1et with %on$i$tent tra%1ing of our re%ommendation$ to pro.ide our %lient$ $uitable 5 timel& in$ight$/ "he re$ear%h team at Religare ha$ %lo$e to ,)) man &ear$ of e3perien%e 5 %o.er$ a large ba$1et of %ompanie$ from different %ategorie$/ Baried Re$ear%h Produ%t$ C ;undamental re$ear%h "e%hni%al re$ear%h Dail& report$ IntraCda& trading te%h %all$ IntraCda& Deri.ati.e %all$ Dire%tional ;5O %all$ Stru%tured produ%t

5a#ue Add&
A%%e$$ &our ledger balan%e$ and a%%ount information o.er internet and at the bran%h 0elp Brow$er and appli%ation ba$ed platform$ %an al$o be made a.ailable for e6uit& trading A%%e$$ to all &our a%%ount$ through &our uni6ue u$tomer Relation$hip ?umber D R?E

T%e Re#igare Edge

Powerful re$ear%h and anal&ti%$ $upported b& a pool of highl& $1illed re$ear%h anal&$t$ Page -1 of 4/ RELIGARE SE !RI"IES LIMI"ED#

Ethi%al bu$ine$$ pra%ti%e$ Offline9Online deli.er& model$ Single window for all in.e$tment need$ through &our uni6ue R?

In&titutiona# )ro$ing Service&

"he mi$$ion of thi$ di.i$ion i$ to in$titutionali7e and implement a pro%e$$ dri.en approa%h to %ater to the need$ of leading %orporate hou$e$ and in$titution$/ "he di.i$ion would li1e to be $een a$ a one $top in.e$tment gatewa& and 1nowledge repo$itor& for it$ %lient$ $er.i%ing their uni6ue and $ophi$ti%ated need$/ "he di.i$ion i$ $tru%tured a$ a $eparate SB! and i$ hou$ed out of Mumbai' manned b& a $mall &et fleet footed and e3tremel& $1illed group of top not%h profe$$ional$ drawn from the be$t in the indu$tr&/ "he 1e& highlight$ of our $er.i%e platter are2

0ighl& $1illed' dedi%ated dealing' re$ear%h and $ale$ team$ Dealing %apabilitie$ on the ?SE' BSE and in the %a$h and deri.ati.e$ $egment InCdepth' detailed and in$ightful %o.erage of more than M) $to%1$ a%ro$$ di.er$e

Se%tor$/ "he $e%tor$ %o.ered are ;M G' 0otel$' Media' Pharma' and Auto' ement' Steel pipe$' Logi$ti%$' "ele%om' on$tru%tion and mu%h more/ Our urrent %lientele in%lude$ $ome ma-or dome$ti% Mutual ;und$' In$uran%e ompanie$'

Ban1$ and ;II4$

Internationa# Advi&or
International Ad.i$or& ;und Management Ser.i%e$ DA;MSE C A new hori7on for international in.e$tment$ we pro.ide our wealth %lient$ an opportunit& to in.e$t in international finan%ial in$trument$ D%urrentl& limited to the !SE/ E6uitie$' Mutual ;und$ and Debt$ are $ome of the 1e& in$trument$ a.ailable and the %lient$ ha.e the option to %hoo$e from .ariou$ a$$et allo%ation module$/ 9% Inve&t ,ver&ea&F A.enue$ for enhan%ing return$' minimi7ing ri$1 and portfolio di.er$ifi%ation RELIGARE SE !RI"IES LIMI"ED#

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Global outrea%h of opportunitie$ PreCappro.ed route for re$ident indi.idual$ to in.e$t D0ealth& Go.t/ Patronage and fa.orable regulator& de.elopment$

Inve&tment )an$ing
Ie pro.ide inno.ati.e' integrated and be$tCfit $olution$ to our %orporate %u$tomer$/ It i$ our %ontinuou$ endea.or to pro.ide .alue enhan%ement through di.er$e finan%ial $olution$ on an ongoing ba$i$' through offering$ li1e GDR9ADR et%/ In.e$tment Ban1ing with Religare offer$ the following $er.i%e$2 orporate Debt' Pri.ate E6uit&' IPO' E B' ; B'

Corporate ;inance
Ie fo%u$ on finding right and rele.ant partner$ for our %lient$' who not onl& help in adding .alue but al$o impro.e the future .aluation of the organi7ation/ Ie $pe%iali7e in $tru%tured finan%ing and pro.iding ad.i$or& $er.i%e$ related to finan%ial planning' modeling and ad.i$ing on finan%ial re6uirement$/ orporate finan%e produ%t$ offered b& u$2 Pla%ement of Debt S&ndi%ation of Dome$ti% Loan 9 ;oreign urren%& Loan Se%uriti7ation Debt Swap 5 Loan Re$tru%turing Short "erm orporate Debt Ior1ing apital D a$h redit 5 Short term LoanE apital Mar1et In$trument$ O.er$ea$ A%6ui$ition Pla%ement of E6uit& DPri.ate E6uit&E Both for li$ted and unli$ted %ompanie$

Merc%ant )an$ing
IPO9;PO9RIG0"S Page -: of 4/ RELIGARE SE !RI"IES LIMI"ED#

Merger$ 5 A%6ui$ition$ orporate Ad.i$or& Ser.i%e$ ADR9GDR9; B

B!Q BA @ O; S0ARES

Port"o#io Management Service& (PMSE

Religare offer$ PMS to addre$$ .ar&ing in.e$tment preferen%e$/ A$ a fo%u$ed $er.i%e' PMS pa&$ attention to detail$' and portfolio$ are %u$tomi7ed to $uit the uni6ue re6uirement$ of in.e$tor$/ Religare PMS %urrentl& e3tend$ fi.e portfolio management $%heme$' .i7 Panther' "ortoi$e' Elephant' aterpillar and Leo/ Ea%h $%heme i$ de$igned 1eeping in mind the .ar&ing ta$te$' ob-e%ti.e$ and ri$1 toleran%e of our in.e$tor$

Inve&tment P%i#o&op%
Ie belie.e that our in.e$tor$ are better $er.ed b& a di$%iplined in.e$tment approa%h' whi%h %ombine$ an under$tanding of the goal$ and ob-e%ti.e$ of the in.e$tor with a fine tuned $trateg& ba%1ed b& re$ear%h/ ,/ Sto%1 $pe%ifi% $ele%tion pro%edure ba$ed on fundamental re$ear%h for ma1ing $ound in.e$tment de%i$ion$/ (/ ;o%u$ on minimi7ing in.e$tment ri$1 b& following rigorou$ .aluation di$%ipline$/ </ apital pre$er.ation/ =/ Selling di$%ipline and u$e of Deri.ati.e$ to %ontrol .olatilit&/ >/ O.erall to enhan%e ab$olute return for in.e$tor$/

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Sc%eme& Pant%er
"he Panther portfolio aim$ to a%hie.e higher return$ b& ta1ing aggre$$i.e po$ition$ a%ro$$ $e%tor$ and mar1et %apitali7ation$/ It i$ $uitable for the 0igh Ri$1 0igh Return# in.e$tor with a $trateg& to in.e$t a%ro$$ $e%tor$ and ta1e ad.antage of .ariou$ mar1et %ondition$/

Tortoi&e
"he "ortoi$e portfolio aim$ to a%hie.e growth in the portfolio .alue o.er a period of time b& wa& of %areful and -udi%iou$ in.e$tment in fundamentall& $ound %ompanie$ ha.ing Good pro$pe%t$/ "he $%heme i$ $uitable for the Medium Ri$1 Medium Return# in.e$tor with a $trateg& to in.e$t in %ompanie$ whi%h ha.e %on$i$ten%& in earning$' growth and finan%ial performan%e/

E#ep%ant
"he Elephant portfolio aim$ to generate $tead& return$ o.er a longer period b& in.e$ting in Se%uritie$ $ele%ted onl& from BSE ,)) and ?SE ,)) inde3/ "hi$ plan i$ $uitable for the Low Ri$1 Low Return# in.e$tor with a $trateg& to in.e$t in blue %hip %ompanie$' a$ the$e %ompanie$ ha.e $tead& performan%e and redu%e li6uidit& ri$1 in the mar1et/

Caterpi##ar
"he aterpillar portfolio aim$ to a%hie.e %apital appre%iation o.er a long period of time b& in.e$ting in a di.er$ified portfolio/ "hi$ $%heme i$ $uitable for in.e$tor$ with a high ri$1 appetite/ "he in.e$tment $trateg& would be to in.e$t in $%rip$ whi%h are poi$ed to get a reC rating either be%au$e of %hange in bu$ine$$' potential fan%& for a parti%ular $e%tor in the Page -> of 4/ RELIGARE SE !RI"IES LIMI"ED#

%oming &ear$9month$' bu$ine$$ di.er$ifi%ation leading to a better operating performan%e' $to%1$ in their earl& $tage$ of an upturn or for tho$e whi%h are in $e%tor$ %urrentl& ignored b& the mar1et/

Leo
Leo i$ aimed at retail %u$tomer$ and $tru%tured to pro.ide medium to longCterm %apital appre%iation b& in.e$ting in $to%1$ a%ro$$ the mar1et %apitali7ation range/ "hi$ $%heme i$ a mi3 of moderate and aggre$$i.e in.e$tment $trategie$/ It$ aim i$ to ha.e a balan%ed portfolio %ompri$ing $ele%ted in.e$tment$ from both "ortoi$e and Panther/ E3po$ure to Deri.ati.e$ are ta1en within permi$$ible regulator& limit$/

T%e Re#igare Edge

Ie $er.e &ou with a diligent' tran$parent 5 pro%e$$ dri.en approa%h and en$ure that &our mone& get$ the %are it de$er.e$/ ?o e3pert$' onl& e3perti$e/ PMS brought to &ou b& Religare with it$ $olid reputation of an ethi%al and $%ientifi% approa%h to finan%ial management/ Ihile we offer &ou the $er.i%e$ of a Dedi%ated Relation$hip Manager who i$ at &our $er.i%e (=3L' we do not depend on indi.idual e3perti$e alone/ ;or &ou' thi$ mean$ lower ri$1' higher dependabilit& and unhindered %ontinuit&/ Moreo.er' &ou are not limited b& a parti%ular indi.idual4$ in.e$tment $t&le/ ?o hidden profit$/ Ie en$ure that a part of the bro1ing at Religare Portfolio Management Ser.i%e$ i$ through e3ternal bro1ing hou$e$/ "hi$ mean$ that &our portfolio i$ not %hurned needle$$l&/ !$ing more bro1ing firm$ gi.e$ u$ a%%e$$ to a larger number of report$ and anal&$i$' enabling u$ to ma1e better' more informed de%i$ion$/ ;urthermore' &our portfolio i$ %u$tomi7ed to $uit &our in.e$tment ob-e%ti.e$/ Dail& di$%lo$ure$' Religare Portfolio Management Ser.i%e$ gi.e &ou dail& update$ on &our in.e$tment/ Qou %an pinpoint where &our mone& i$ being in.e$ted' (=3L' in$tead of waiting till the end of the month to 1eep tra%1/ ?o %harge till &ou profit D;or Profit Sharing Management ;ee$ onl&ER /So $ure are we of our approa%h to Portfolio Management that we do not %harge &ou for our $er.i%e$' until &our in.e$tment$ $tart $howing profit/ Iith %u$tomi7ed in.e$tment option$ Religare Portfolio Management Ser.i%e$ in.ite$ &ou to in.e$t a%ro$$ fi.e broad portfolio$ to $uit &our in.e$tment need$

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Stock Market of India Introduction

Sto%1 mar1et$ refer to a mar1et pla%e where in.e$tor$ %an bu& and $ell $to%1$/ "he pri%e at whi%h ea%h bu&ing and $elling tran$a%tion ta1e$ i$ determined b& the mar1et for%e$ Di/e/ demand and $uppl& for a parti%ular $to%1E/ In earlier time$' bu&er$ and $eller$ u$ed to a$$emble at $to%1 e3%hange$ to ma1e a tran$a%tion but now with the dawn of I"' mo$t of the operation$ are done Ele%troni%all& and the $to%1 mar1et$ ha.e be%ome almo$t paperle$$/ ?ow in.e$tor$ don4t ha.e to gather at the E3%hange$' and %an trade freel& from their home or offi%e o.er the phone or through Internet/

'i&tor o" t%e Indian Stoc$ Mar$et T%e ,rigin

One of the olde$t $to%1 mar1et$ in A$ia' the Indian Sto%1 Mar1et$ ha.e a ()) &ear$ old hi$tor& 1/t% Centur 1/:.G& 1/<.G& 1/>.G& 1/=.G& 1/=.0=1 Page -4 of 4/ RELIGARE SE !RI"IES LIMI"ED# Ea$t India ompan& wa$ the dominant in$titution and b& end of the %entur&'

bu$ine$$ in it$ loan $e%uritie$ gained full momentum Bu$ine$$ on %orporate $to%1$ and $hare$ in Ban1 and otton pre$$e$ $tarted in Bomba&/ "rading li$t b& the end of ,*<O got broader Re%ognition from ban1$ and mer%hant$ to about half a do7en bro1er$ Rapid de.elopment of %ommer%ial enterpri$e $aw bro1erage bu$ine$$ attra%ting more people into the bu$ine$$ "he number of bro1er$ in%rea$ed to M) "he Ameri%an i.il Iar bro1e out whi%h %au$ed a $toppage of %otton $uppl&

from !nited State$ of Ameri%a8 mar1ing the beginning of the SShare ManiaS in India 1/=-0=: 1/=> "he number of bro1er$ in%rea$ed to about ()) to (>) A di$a$trou$ $lump began at the end of the Ameri%an $old at R$/ *LE i.il Iar Da$ an e3ample' Ban1 of Bomba& Share whi%h had tou%hed R$/ (*>) %ould onl& be

Pre0Independence Scenario 0 E&tab#i&%ment o" Di""erent Stoc$ E?c%ange&

1/4< Iith the rapidl& de.eloping $hare trading bu$ine$$' bro1er$ u$ed to gather at a $treet Dnow well 1nown a$ SDalal StreetSE for the purpo$e of tran$a%ting bu$ine$$/ S"he ?ati.e Share and Sto%1 Bro1er$G A$$o%iationS Dal$o 1nown a$ S"he Bomba& Sto%1 E3%hangeSE wa$ e$tabli$hed in Bomba& De.elopment of %otton mill$ indu$tr& and $et up of man& other$ E$tabli$hment of S"he Ahmedabad Share and Sto%1 Bro1er$G A$$o%iationS 0 Sharp in%rea$e in $hare pri%e$ of -ute indu$trie$ in ,*L)G$ wa$ followed b& a boom in tea $to%1$ and %oal S"he al%utta Sto%1 E3%hange A$$o%iationS wa$ formed Madra$ witne$$ed boom and bu$ine$$ at S"he Madra$ Sto%1 E3%hangeS wa$ tran$a%ted with ,)) bro1er$/ Ihen re%e$$ion followed' number of bro1er$ %ame down to < and the E3%hange wa$ %lo$ed down E$tabli$hment of the Lahore Sto%1 E3%hange Merger of the Lahoe Sto%1 E3%hange with the Pun-ab Sto%1 E3%hange ReCorgani7ation and $et up of the Madra$ Sto%1 E3%hange Limited DP.t/E Limited led b& impro.ement in $to%1 mar1et a%ti.itie$ in South India with e$tabli$hment of new te3tile mill$ and plantation %ompanie$ !ttar Prade$h Sto%1 E3%hange Limited and ?agpur Sto%1 E3%hange Limited wa$ e$tabli$hed E$tabli$hment of S"he 0&derabad Sto%1 E3%hange LimitedS SDelhi Sto%1 and Share Bro1er$G A$$o%iation LimitedS and S"he Delhi Sto%1$ and Share$ E3%hange LimitedS were e$tabli$hed and later on merged into S"he Delhi Sto%1 E3%hange A$$o%iation LimitedS

1/4> 1//.G& 1/@< 1//. @.G& 1@./ 1@-. 1@-: 1@:< 1@:= 1@:4

1@<. 1@<< 1@<4

Po&t Independence Scenario

"he depre$$ion witne$$ed after the Independen%e led to %lo$ure of a lot of e3%hange$ in the %ountr&/ Lahore Sto%1 E3%hange wa$ %lo$ed down after the partition of India' and later on merged with the Delhi Sto%1 E3%hange/ Bangalore Sto%1 E3%hange Limited wa$

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regi$tered in ,O>L and got re%ognition onl& b& ,OM</ Mo$t of the other E3%hange$ were in a mi$erable $tate till ,O>L when the& applied for re%ognition under Se%uritie$ DRegulation$E A%t' ,O>M/ "he E3%hange$ that were re%ogni7ed under the A%t were ,/ Bomba& (/ al%utta </ Madra$ =/ Ahmedabad >/ Delhi M/ 0&derabad L/ Bangalore */ Indore At pre$ent' there are twent& one re%ogni7ed $to%1 e3%hange$ in India whi%h doe$ not in%lude the O.er "he ounter E3%hange of India Limited DO" EIE and the ?ational Sto%1 E3%hange of India Limited D?SEILE/ Go.ernment poli%ie$ during ,O*)G$ al$o pla&ed a .ital role in the de.elopment of the Indian Sto%1 Mar1et$/ "here wa$ a $harp in%rea$e in number of E3%hange$' li$ted %ompanie$ a$ well a$ their %apital' whi%h i$ .i$ible from the following table 1 S3 (o3 A& on :1&t December @ < = , ?o/ of Sto%1 L , ( ?o/ of Li$ted o$/ , ( > , < ?o/ of Sto%1 I$$ue$ of Li$ted o$/ > ) M Page -@ of 4/ RELIGARE SE !RI"IES LIMI"ED# 1 @ = 1 L , ( ) < ( , , , 1 @ 4 1 * , > O O ( * < * 1 @ 4 > * , > > ( < ( < ) 1 @ / . O ( ( M > < M O L 1 @ / > , = = < = = M , L = *O ML ,, L* = M( (O *> O< () (( 1@ @1 1@ @> ontra%t$

E3%hange$

apital of Li$ted D r/ R$/E

o$/

( L )

L > < , ( O ( M < , ) L , L )

, * , ( ( M L > , , < , M L , = *

( M , = < ( L < , M * ( , , , ( M

< O L < M L > ) , L > ( O * , L )

O L ( < ( > < ) ( ( ( = > * ( ( M )

<( )= ,

>O >* <

>

Mar1et .alue of apital of Li$ted o$/ D r/ R$/E

O L ,

,, )( LO

=L *, (,

apital per Li$ted D=9(E DLa1h R$/E Mar1et Balue

o$/

( =

>, = ,L L) <= =

MO < >> M= *) <

of o$/

apital per Li$ted DLa1h R$/E D>9(E

* M < > *

Appre%iated .alue of * apital per Li$ted DLa1 R$/E o$/

ME(AI(G A(D IMP,RTA(CE ,; T'E ST,C7 ECC'A(GE

A%%ording to $e%tion (D-E of the $e%uritie$ %ontra%t regulation$ a%t' ,O>M $to%1 e3%hange mean$ a bod& of indi.idual$ whether in%orporated or not' %on$tituted for the purpo$e of a$$i$ting' regulating or %ontrolling the bu$ine$$ of bu&ing' $elling or dealing in $e%uritie$/ A $to%1 e3%hange i$ the %entral pla%e or mar1et where indu$trial $e%uritie$ are bought and $old under a %ode of rule$ and regulation$/ A $to%1 e3%hange i$ a pla%e where an&bod& who want$ to bu& parti%ular $e%uritie$ %an find an immediate $eller or an&bod& who want$ to $ell hi$ holding %an find a bu&er at rea$onable and fair pri%e/ Some e%onomi$t %on$ider$ them a$

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e%onomi% barometer/ Reall& the$e %an be defined in between two ideologie$/ It Bi$mar%1 and $old for either in.e$tment with the following feature$2C ,/ (/ </ =/ Organi ed market: A $to%1 e3%hange i$ the well e$tabli$hed and properl& organi7ed !ut"ori ed member# E.er& $to%1 e3%hange ha$ it$ authori7ed member$ who deal in Rules and Regulations# A $to%1 e3%hange i$ a mar1et where $e%uritie$ are bought and Sales and Purc"ase of securities# the $to%1 e3%hange i$ a mar1et for the pur%ha$e and A $to%1 e3%hange i$ an integral part of the %apital mar1et of an& %ountr&/ ?o doubt/ ?either an& indu$tr& %an not be $u%%e$$full& e$tabli$hed nor %an flouri$h without $uffi%ient %apital/ "he $to%1 e3%hange pla&$ a .er& .ital in pro.iding %apital re$our%e$ to the newl& e$tabli$hed indu$trial underta1ing whi%h i$ .er& e$$ential for the e%onomi% de.elopment of the %ountr&/ It i$ a publi% in$titution who$e fun%tioning i$ the ma-or %on%ern for man& $egment of national life/ It i$ e3pe%ted to a%%elerate the progre$$ of e%onomi% growth/ It a%t$ a$ the barometer for the general of the %ountr&/ Sto%1 E3%hange %reate$ the habit$ of $a.ing ' in.e$ting and ri$1 ta1ing among the member of the general publi%/ "hi$ habit$ lead$ to in.e$tment of fund$ in %orporate and go.ernment $e%uritie$/ "he fund pla%ed at the di$po$al of the %ompanie$ and go.ernment i$ utili7ed b& them for meeting their %apital re6uirement/ "hu$ in m& point of .iew ' the $to%1 e3%hange $er.e a$ a mirror whi%h refle%t the e%onomi% ' $o%ial and politi%al $ituation of the %ountr&/ All in.e$tor want %apital appre%iation %oupled with good return but with minimum ri$1/ Sto%1 E3%hange a$$i$t$ the in.e$ting %la$$ in thi$ important ta$1 of in.e$ting planning/ It not onl& pro.ide$ the wider and read& mar1et for the $e%uritie$ of the .ariou$ %ompanie$ in pri.ate $e%tor but al$o $er.e$ a$ the platform for publi%4$ debt$ and pro.iding finan%e to PSE and pro-e%t$ of national enterpri$e$/ Sto%1 E3%hange a%%elerated e%onomi% de.elopment' %apital formation' and e%onomi% growth/ "he& pro.ide %apital to indu$tr& and %ommer%e and go.ernment/ "he& pro.ide wider and read& mar1et for their $e%uritie$ and bargaining power in the e.ent of further e3pan$ion and merger/ mar1et/ $e%uritie$ on behalf of their %lient/ $old under a %ode of rule$ and regulation$/ $ell of indu$trial and finan%ial $e%uritie$/

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;U(CTI,(S ,; ST,C7 MAR7ET

"he Sto%1 E3%hange %reate$ the habit$ of $a.ing' in.e$ting and ri$1 ta1ing among the ma$$e$/ "hi$ habit$ lead$ to in.e$tment of fund$ in %orporate and go.ernment $e%uritie$/ "he$e fund$ are utili7ed b& them a$ per their re6uirement/ "hrough thi$ the& earn profit$ whi%h in%rea$e their publi%it&/ "hrough the publi%ation of information regarding the new i$$ue$ and alread& li$ted $e%uritie$' $o the Sto%1 E3%hange en%ourage$ the general publi% to in.e$t in tho$e %ompanie$/ A Sto%1 E3%hange i$ an organi7ed read& and %ontinuou$ mar1et to deal in $e%uritie$/ It i$ the a3le on whi%h whole finan%ial $tru%ture of %apitali$ti% $&$tem turn$/ It pro.ide$ in%rea$ed li6uidit& and better mar1etabilit& for $e%uritie$' and thu$ in%rea$e$ flow of %apital/ "he ea$& Page :- of 4/ RELIGARE SE !RI"IES LIMI"ED#

mar1etabilit& of $hare$ and other $e%uritie$ al$o in%rea$e$ the .alue of in.e$tment a$ $e%uritie$ of an& loan$ he ma& li1e to obtain/ "he %reditor$ 1now the real po$ition of hi$ $e%uritie$/ Sto%1 E3%hange pro.ide $afet& and e6uit& of dealing$ b& ma1ing -udi%iou$ $ele%tion$ of member$' $tri%t re6uirement of li$ting pri.ilege onl& for reputed %ompanie$ with growth pro$pe%t$' no unhealth& %ompetition' high $tandard of %ommer%ial honour and integrit&' $tri%t rule$ and regulation$ to a.oid the %han%e of e3%e$$i.e and unhealth& $pe%ulation/ "hu$ the in.e$tor feel$ 6uite $e%ure while dealing in re%ogni7ed Sto%1 E3%hange/ "he e3i$ting and running bu$ine$$ %on%ern$ ha.e to $e%ure fund$ for their de.elopment and e3pan$ion program$' hen%e the& ha.e to go to the %apital mar1et for further i$$ue of $hare and debenture$/ Sto%1 E3%hange guide the %orporate $e%tor regarding the proper timing$ of new i$$ue$ It wor1$ a$ a guiding for%e to the in.e$tor$/ Arri.al and maintain$ of fair pri%e$ re.ealing the real worth of $e%uritie$ due to limitle$$ and free %ompletion$ in open mar1et' ma3imum publi%it&' and %on$tant 6uotation through pre$$' radio' "B' enlightened and $%ientifi% trading and mar1et operation in full publi% .iew the timel& publi%ation of pri%e li$t and mar1et report guide and enlightened the in.e$ting %ommunit& for their betterment/ Ihen the $e%urit& of a %ompan& i$ being $old abo.e the fa%e .alue for a long time it indi%ate$ the good pro$pe%t$ for the %ompan&/ "he publi% will neutrall& be attra%ted toward$ $u%h a %ompan& and it %an ea$il& rai$e fund/ "he $e%uritie$ of le$$ pro$perou$ %on%ern$ ma& be $old b& the in.e$tor$ in fa.our of the more profitable %on%ern$/ "he Sto%1 E3%hange pro.ide$ opportunitie$ to $hrewd bu$ine$$men to $pe%ulate and reap profit from flu%tuation$ in $e%urit& pri%e$/ Due to $pe%ulation the $uppl& of $e%uritie$ at different pla%e$ ma& be e6uali7ed with demand/ Sto%1 E3%hange a%t a$ lin1 between the .ariou$ %apital rai$ing %on%ern$ and numerou$ in.e$tor$ $in%e the& attra%t and en%ourage both the partie$ and pro.ide$ the %entrali7ed mar1et for the $e%uritie$/ "he ma-or fun%tion$ of $to%1 e3%hange are a$ follow2C Mobili7ing %apital reation of li6uidit& and mar1etabilit& En$uring pri%e %ontinuit& Pro.iding faithful mar1et 6uotation RELIGARE SE !RI"IES LIMI"ED#

Page :: of 4/

;urni$hing $to%1 of inde3 Open mar1et apprai$al of $e%uritie$ Pro.iding health& $pe%ulation Maintaining profitabilit& E.aluation of %orporate $tandard$ Pro.iding a $ea$oning ground for new i$$ue ;a%ilitating di$tribution of new i$$ue

C,(CEPT ,; ST,C7 ECC'A(GE

Sto%1 e3%hange a$ an organi7ed $e%urit& mar1et pro.ide$ mar1etabilit& and pri%e %ontinuit& for $hare$ and help$ in a fair e.aluation of $e%uritie$ in term$ of their intrin$i% worth/ "hu$ it help$ orderl& flow and di$tribution of $a.ing$ between different t&pe$ of in.e$tment$/ "hi$ in$titution perform$ an important part in the e%onomi% life of a %ountr&' a%ting a$ a free mar1et for $e%uritie$ where pri%e$ are determined b& the for%e$ of $uppl& and demand/ Apart from the abo.e ba$i% fun%tion it al$o a$$i$t$ in mobili7ing fund$ for the Go.ernment and the Indu$tr& and to $uppl& a %hannel for the in.e$tment of $a.ing$ in the performan%e of it$ fun%tion$/ Page :< of 4/ RELIGARE SE !RI"IES LIMI"ED#

"he Sto%1 E3%hange$ in India a$ el$ewhere ha.e a .ital role to pla& in the de.elopment of the %ountr& in general and indu$trial growth of %ompanie$ in the pri.ate $e%tor in parti%ular and help$ the Go.ernment to rai$e internal re$our%e$ for the implementation of .ariou$ de.elopment programmer$ in the publi% $e%tor/ A$ a $egment of the %apital mar1et it perform$ an important fun%tion in mobili7ing and %hanneli$ing re$our%e$ whi%h remain otherwi$e $%attered/ "hu$ the Sto%1 E3%hange$ tap the new re$our%e$ and $timulate a broad ba$ed in.e$tment in the %apital $tru%ture of indu$trie$/ A well de.eloped and health& $to%1 e3%hange %an be and $hould be an important in$titution in building up a propert& ba$e along with a $o%iali$t in India with broader di$tribution of wealth and in%ome/ "hu$ Sto%1 E3%hange i$ a .ital organ in a modern $o%iet&/ Iithout a $to%1 e3%hange a modern demo%rati% e%onom& %annot e3i$t/ "he $&$tem of -oint $to%1 %ompanie$ finan%ed through the publi% in.e$tment a$ emerged ha$ put the .a$t mean$ of finan%e$ almo$t to entrepreneur$4 need$/ ;inan%e from e3ternal $our%e$ mainl& from the in.e$ting publi% %an be%ome po$$ible onl& when an in$titute li1e Sto%1 E3%hange pro.ide$ opportunitie$ for the %on.er$ion of $%attered $a.ing$ into profitable in.e$tment$ with the promi$e$ of a rea$onable &ield and minimum element of ri$1/ Su%h a me%hani$m a$ pro.ided b& Sto%1 E3%hange$ i$ not merel& a $our%e of %apital but al$o a %onduit whi%h %hanneli$e$ the $a.ing$ into in.e$tment along with a free mo.ement of %apital/ Iith the probable e3%eption of a totalitarian $tate no Go.ernment will be able to mobili7e re$our%e$ from the publi% if the mone& mar1et in the form of $to%1 e3%hange doe$ not e3i$t/ "he Sto%1 E3%hange benefit$ the entire %ommunit& in a .ariet& of wa&/ It enable$ the produ%er$ to rai$e %apital whi%h dire%tl& and indire%tl& gi.e$ gainful emplo&ment to million$ of people on the one hand and help$ %on$umer$ to get 8the .ariet& of good$ needed b& them on the other/ It pro.ide$ opportunitie$ to $a.er$ to $tore the .alue either a$ temporar& abode of pur%ha$ing power or a$ a permanent abode of pur%ha$ing power in the form of finan%ial a$$et$/ It al$o help$ the $egment$ of the $a.er$ who put their $a.ing$ in %ommer%ial firm$ and nonCban1ing finan%ial intermediarie$ be%au$e the$e in$titution$ a.ail them$el.e$ of the $er.i%e$ of Sto%1 E3%hange to in.e$t the mone& thu$ %olle%ted/ "he Sto%1 E3%hange %ome$ %lo$e enough to a perfe%tl& %ompetiti.e mar1et allowing the for%e$ of demand and $uppl& a rea$onable degree of freedom to operate a$ Page :> of 4/ RELIGARE SE !RI"IES LIMI"ED#

%ompared to other mar1et$ $pe%iall& the %ommodit& mar1et$/ "hi$ $egment of the fa%tor mar1et %an be %on$idered a$ a perfe%t or a nearl& perfe%t mar1et/ Apart from pro.iding a me%hani$m for tran$a%ting bu$ine$$ in $to%1 and $hare$ it generate$ genuine potential for a new entrepreneur to ta1e up initiati.e in the pri.ate $e%tor enterpri$e$ and allow$ the e3pan$ion of in.e$ting %ommunit& b& offering gainful de.elopment of their otherwi$e $luggi$h or $h& %apital/ "he Sto%1 E3%hange mu$t a$$ume the re$pon$ibilit& of prote%ting the right$ of in.e$tor$ $pe%iall& the $mall in.e$tor$ in the Foint Sto%1 ompanie$/

E5,LUTI,( ,; ST,C7 ECC'A(GES I( I(DIA

An& attempt at rai$ing the $tandard of li.ing of the ma$$e$ mu$t addre$$ it$elf to the ta$1 of produ%ing the right 6uantit& of the right t&pe$ of good$ and ha.e them a.ailable for %on$umption at the right time/ "hi$ re6uire$ largeC$%ale produ%tion through %oordination of a%ti.itie$ of hundred$ of people under the $ame roof e.en when the produ%t i$ the $imple$t to ma1e/ "hi$' howe.er' %all$ for rai$ing .a$t amount$ of finan%ial re$our%e$ for the purpo$e of a%6uiring land' building$ and e6uipment$' be$ide$ pur%ha$ing raw material$ and emplo&ing labour/ ?o one indi.idual or a $mall group of indi.idual$ i$ ri%h enough to pro.ide all the %apital re6uired b& modern bu$ine$$ enterpri$e and $a.ing$ of hundred$' if not thou$and$' of people mu$t be mobili7ed/ Page := of 4/ RELIGARE SE !RI"IES LIMI"ED#

"he %orporate form of organi7ation i$ well adapted to the ta$1 of rai$ing %apital from man& people/ "hi$ i$ done b& i$$uing or offering for $ale at %a$h' different t&pe$ of $e%uritie$' that i$' $hare$ and bond$' whi%h offer to indi.idual in.e$tor$ a mean$ of produ%ti.el& emplo&ing %apital9$a.ing$ $uited to hi$9her need$ and temperament/ "he need for offering for $ale different t&pe$ of $e%uritie$ i$ ob.iou$/ Some people ma& de$ire $afet& of the amount the& ha.e in.e$ted and a regular in%ome from their in.e$tment/ "o them the %orporation or %ompan& ma& offer debenture bond$C a %ertifi%ate i$$ued under the $eal of the %ompan& promi$ing a refund of the loan on a $pe%ified date and pa&ment of intere$t at pre$%ribed inter.al$/ Other in.e$tor$ ma& be willing to %ommit their $a.ing$ for an indefinite period of time and to a$$ume greater ri$1 while $till de$iring $afet& of %apital and $tabilit& of in%ome/ "o them the %orporation will $ell preferen%e $hare$/ Still other in.e$tor$ ma& be willing to $houlder the bu$ine$$ ri$1 that goe$ along with the owner$hip of the bu$ine$$ in the hope that the profit reali7ed would be large enough to %ompen$ate the greater ri$1 the& are a$$uming/ But no one will bu& the$e $e%uritie$ unle$$ there e3i$t$ an organi7ed mar1et where the holder$ %an di$po$e of them' $hould the need ari$e' and new in.e$tor$ %an pur%ha$e them/ O.er the &ear$' $u%h organi7ed mar1et$ ha.e %ome into e3i$ten%e in all demo%rati% and %apitali$ti% %ountrie$ in%luding India/ Su%h a mar1et i$ %alled $to%1 mar1et or a $to%1 e3%hange in Engli$h $pea1ing %ountrie$ and a Gbrou$eG in %ontinental Europe/ "here i$' ob.iou$l&' no need for $to%1 e3%hange in ommuni$t %ountrie$ $in%e in $u%h %ountrie$ all the produ%ti.e organi7ation$ are owned b& the go.ernment/ Organi7ed $to%1 e3%hange in India i$ of re%ent origin/ A$ late a$ ,O<< there were onl& three $to%1 e3%hange$ + one ea%h at A%medabad' )omba and Ca#cutta' but trading in $e%uritie$ wa$ in .ogue mu%h prior to that &ear/ Of %our$e' no one %an tell when the fir$t tran$a%tion too1 pla%e' howe.er' it i$ generall& agreed that bu$ine$$ in $e%uritie$ had begun a$ earl& a$ the %on%luding &ear$ of the ,* th %entur&' that i$' between the &ear$ ,LO) and ,*)) A/D/

E?i&ting &tructure o" t%e &toc$ e?c%ange& in India

"he A%t re%ogni7e$ $to%1 e3%hange$ with different legal $tru%ture/ Pre$entl& the $to%1 e3%hange$ whi%h are re%ogni7ed under the Se%uritie$ Page :4 of 4/ RELIGARE SE !RI"IES LIMI"ED# ontra%t$ DRegulationE A%t in India'

%ould be $egregated into two broad group$ + () $to%1 e3%hange$ whi%h were $et up a$ %ompanie$' either limited b& guarantee$ or b& $hare$' and the < $to%1 e3%hange$ whi%h are fun%tioning a$ a$$o%iation$ of per$on$ DAOPE .i7/ BSE' Ahmedabad Sto%1 E3%hange and Indore Sto%1 E3%hange/ "he () $to%1 e3%hange$ whi%h are %ompanie$ are2 the $to%1 e3%hange$ of Bangalore' Bhubane$war' al%utta' o%hin' oimbatore' Delhi' Gauhati' 0&derabad' Inter%onne%ted SE' Faipur' Ludhiana' Madra$' Magadh' Managalore' ?SE' Pune' O" EI' Saura$htraC@ut%h' !ttar Prade$h' and Badodara/ Of the$e' the $to%1 e3%hange$ of Ahmedabad' Bangalore' BSE' al%utta' Delhi' 0&derabad' Madh&a Prade$h' Madra$ and Gauhati were gi.en permanent re%ognition b& the entral Go.ernment at the time of $etting up of the$e $to%1 e3%hange$/ Apart from ?SE' all $to%1 e3%hange$ whether e$tabli$hed a$ %orporate bodie$ or A$$o%iation of Per$on$ DAOP$E' are nonCprofit ma1ing organi7ation$/

P,9ERS ,; ST,C7 ECC'A(GE

"he power$ of the $to%1 e3%hange are to be e3er%i$ed a$ per pro.i$ion$ in it$ b&eClaw/ A$ per S RA A%t an& re%ogni7ed $to%1 e3%hange ma&' $ub-e%t to the pre.iou$ appro.al of theTSe%uritie$ and E3%hange Board of India ma1e b&eClaw$ for the regulation and %ontrol of %ontra%t$/ "he b&eClaw$ %an pro.ide for the e3er%i$e of following power$ b& the $to%1 e3%hange ,/ "he opening and %lo$ing of mar1et$ and the regulation of the hour$ of trade8 (/ Set up a %learing hou$e for the periodi%al $ettlement of %ontra%t$ and differen%e$ hereunder' the deli.er& of and pa&ment for $e%uritie$' the pa$$ing on of deli.er& order$ and the regulation and maintenan%e of $u%h %learing hou$e8 </ "he regulation or prohibition of blan1 tran$fer$8 =/ "he regulation' or prohibition of bal$a or %arr&Co.er fa%ilitie$8 >/ "he fi3ing' altering or po$tponing of da&$ for $ettlement$8 M/ "he determination and de%laration of mar1et rate$' in%luding "he opening' %lo$ing' highe$t and lowe$t rate$ for $e%uritie$8 L/ "he term$' %ondition$ and in%ident$ of %ontra%t$' in%luding the pre$%ription of margin re6uirement$' if an&' and %ondition$ relating thereto' and the form$ of %ontra%t$ in writing8 */ "he regulation of the entering into' ma1ing' performan%e' re$%i$$ion and termination' of %ontra%t$' in%luding %ontra%t$ between member$ or between a member and hi$ %on$tituent or between a member and a per$on who i$ not a member' and the %on$e6uen%e$ of default or Page :/ of 4/ RELIGARE SE !RI"IES LIMI"ED#

in$ol.en%& on the part of a $eller or bu&er or intermediar&' the %on$e6uen%e$ of a brea%h or omi$$ion b& a $eller or bu&er' and the re$pon$ibilit& of member$ who are not partie$ to $u%h %ontra%t$8 O/ "he regulation of tara.ani bu$ine$$ in%luding the pla%ing of limitation$ thereon8 ,)/ "he li$ting of $e%uritie$ on the $to%1 e3%hange' the in%lu$ion of an& $e%urit& for the purpo$e of dealing$ and the $u$pen$ion or withdrawal of an& $u%h $e%uritie$' and the $u$pen$ion or prohibition of trading in an& $pe%ified $e%uritie$8 ,,/ "he method and pro%edure for the $ettlement of %laim$ or di$pute$' in%luding $ettlement b& arbitration8 ,(/ "he le.& and re%o.er& of fee$' fine$ and penaltie$ ,</ "he regulation of the %our$e of bu$ine$$ between partie$ to %ontra%t$ in an& %apa%it&8 ,=/ "he e3er%i$e of power$ in emergen%ie$ in trade Dwhi%h ma& ari$e' whether a$ a re$ult of pool or $&ndi%ated operation$ or %ornering or otherwi$eE in%luding the power to fi3 ma3imum and minimum pri%e$ for $e%uritie$8 ,>/ "he regulation of dealing$ b& member$ for their own a%%ount8 ,M/ "he $eparation of the fun%tion$ of -obber$ and bro1er$8 ,L/ "he limitation$ on the .olume of trade done b& an& indi.idual member in e3%eptional %ir%um$tan%e$8 ,*/ ;i3ing the obligation of member$ to $uppl& $u%h information or e3planation and to produ%e $u%h do%ument$ relating to the bu$ine$$ a$ the go.erning bod& ma& re6uired

Ro#e o" Stoc$ E?c%ange in t%e Deve#opment o" Indian Capita# Mar$et
apital o%%upie$ a po$ition $o dominant to the e%onomi% theor& of produ%tion and di$tribution that it i$ natural to a$$ume that it $hould o%%up& at lea$t an e6uall& important pla%e in the theor& and pra%ti%e of e%onomi% growth/ "he $ub-e%t whether approa%hed hi$tori%all& or anal&ti%all& or from the $tandpoint of poli%&' it i$ the pro%e$$ of %apital a%%umulation that o%%upie$ the front of the $tage/ It i$ u$uall& implied that e%onomi% growth and %apital a%%umulation with a high po$iti.e and $ignifi%ant %orrelation and addition$ to the $to%1 of %apital %an pro.o1e and fa%ilitate fa$ter rate of growth e.en under the %ir%um$tan%e$ whi%h %an be de$%ribed a$ $hortage of %apital/

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"he afore$aid %orrelation between the pro%e$$ of e%onomi% growth and %apital a%%umulation in$pired the earlier theori$t$ of e%onomi% de.elopment and e.en in the wor1$ of modern e%onomi$t$ output i$ $till a$$umed to be limited b& %apital whether there i$ abundant labour or not/ A high rate of %apital formation u$uall& re$ult$ in rapid growth in the produ%tion and in%ome' but more %apital formation b& it$elf will not bring a %orre$ponding a%%eleration in the growth of produ%tion/ It al$o depend$ to a large e3tent on the manner in whi%h the %apital i$ utili7ed/ apital mar1et mean$ the mar1et for all the finan%ial in$trument$' $hort term and long term a$ al$o %ommer%ial' indu$trial and go.ernment paper/ "he %apital mar1et deal$ with %apital/ "he %apital mar1et i$ a mar1et where borrowing and lending of long term fund$ ta1e$ pla%e/ apital mar1et$ deal in both debt and e6uit&/ "he go.ernment$ both %entral and $tate rai$e mone& in the %apital mar1et' through the i$$ue of go.ernment $e%uritie$/ apital mar1et$ refer to all the in$titute$ and me%hani$m$ of rai$ing medium and longCterm fund$' through .ariou$ in$trument$ a.ailable li1e $hare$' debenture$' bond$ et%/ orporate both in the pri.ate $e%tor a$ well a$ in the publi% $e%tor rai$e thou$and$ of %rore$ of rupee$ in the$e mar1et$/ "he go.ernment' through Re$er.e Ban1 of India' a$ well a$ finan%ial in$titution$ al$o rai$e$ a lot of mone& from the$e mar1et$/ E3ample of wellCde.eloped mar1et$ i$ + "he Global depo$itor& and Ameri%an depo$itor&/ "here are two important operation %arried on in the$e mar1et$2 ,/ "he rai$ing the new %apital (/ "rading in $e%uritie$ alread& i$$ued b& the %ompanie$/ "he important %on$tituent$ of the %apital mar1et are2 ,/ "he $to%1 e3%hange$ (/ Ban1$ </ "he in.e$tment tru$t$ and %ompanie$ =/ Spe%iali7ed finan%ial in$titution$ or de.elopment ban1$/ Page <. of 4/ RELIGARE SE !RI"IES LIMI"ED#

>/ Mutual fund$ M/ Po$t offi%e $a.ing ban1$ L/ ?on ban1ing finan%ial in$titution$ */ International finan%ial in.e$tor$ and in$titution$/ "he $uppl& in thi$ mar1et %ome$ from $a.ing from different $e%tor$ of the e%onom&/ "he$e %ome from the following $our%e$2 ,/ Indi.idual$ (/ orporate </ Go.ernment$ =/ ;oreign %ountrie$ >/ Ban1$ M/ Pro.ident fund$ L/ ;inan%ial in$titution$/ Moreo.er the e$tabli$hment of ?ational Sto%1 E3%hange and Bomba& Sto%1 E3%hange ha$ been turning point in the wor1ing of %apital mar1et$/ Re%entl& the RBI ha$ allowed parti%ipation of indi.idual$ in the go.ernment $e%uritie$ mar1et$/ "hi$ mo.e i$ li1el& to open new a.enue$ for in.e$tment to indi.idual$/ Moreo.er the ;inan%e Mini$tr& ha$ announ%ed the remo.al of in%ome ta3 on di.idend in the hand$ of the re%ei.er and no %apital gain$ ta3 on in.e$tment$ made in e6uit& after ,/</)< and held for one &ear "o %on%lude we %an $a& that India ha$ a long tradition of fun%tioning %apital mar1et$/ "he pro%e$$ of reform of %apital mar1et$ $tarted in ,OO( and aimed at remo.ing dire%t go.ernment %ontrol and repla%ing it b& a regulator& framewor1 ba$ed on tran$paren%& and di$%lo$ure/ "he fir$t $tep wa$ ta1en in ,OO( when SEBI wa$ ele.ated to a fullCfledged %apital mar1et regulator/ An important poli%& initiati.e in ,OO< wa$ the opening of %apital mar1et$ Page <1 of 4/ RELIGARE SE !RI"IES LIMI"ED#

for foreign in$titutional in.e$tor$ and allowing Indian %ompanie$ to rai$e %apital abroad/ ;II regi$tration$ in the %ountr& ha.e gone up $ignifi%antl& o.er the &ear$/ "he number of regi$tered ;II$ ha$ gone up from *(< in De%ember ())> to OL( in O%tober ())M/ ;II$ had made U,)/L billion worth of in.e$tment DR$ =L',*, %roreE in %alendar ())>/ "he ;II$ ha.e been rewarded well b& attra%ti.e .aluation$ and in%rea$ing return$/ "he depo$itor& and $hare demateriali7ation $&$tem$ ha.e been introdu%ed to enhan%e the effi%ien%& of the tran$a%tion %&%le/ A number of $ignifi%ant reform$ ha.e been implemented in the $pot e6uit& and related e3%hange traded deri.ati.e$ mar1et$ $in%e the earl& ,OO)$/ ;or in$tan%e' $pot pri%e$ are mo$tl& mar1etCdetermined' trading .olume$ in the deri.ati.e$ mar1et e3%eed tho$e in $pot mar1et$ and mar1et pra%ti%e$ $u%h a$ $peed of $ettlement and demateriali7ation are %lo$e to international be$t pra%ti%e$/ A$ we %an $ee that the $to%1 e3%hange i$ now $een in%rea$ingl& for what it reall& i$' namel& an e$$ential finan%ial infra$tru%ture for an& e%onom&/ It i$ thi$ .iew of the e3%hange a$ infra$tru%ture that moti.ated the Indian go.ernment to en%ourage the e$tabli$hment of the ?ational Sto%1 E3%hange of India at Mumbai' whi%h in a few $hort &ear$ %ompletel& re.olutioni7ed the Indian %apital mar1et/ "he tran$paren%& of the pri%e di$%o.er& pro%e$$ whi%h re$ult$' e$pe%iall& in te%hnolog& dri.en $to%1 e3%hange$ en%ourage$ parti%ipation in e%onomi% a%ti.it& and enhan%e$ the effi%ient utili7ation of re$our%e$/ In addition' the $to%1 mar1et i$ in%rea$ingl& per%ei.ed a$ an ele%troni% mar1etpla%e for bu&er$ and $eller$ of $e%uritie$ to tran$a%t their bu$ine$$' under the full .iew of ob$er.er$

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CURRE(T SITUATI,(
Man& more $to%1 e3%hange$ were e$tabli$hed
Bomba& Sto%1 E3%hange ?ational Sto%1 E3%hange Ahmedabad Sto%1 E3%hange Bangalore Sto%1 E3%hange Bhubane$hwar Sto%1 E3%hange al%utta Sto%1 E3%hange o%hin Sto%1 E3%hange oimbatore Sto%1 E3%hange Delhi Sto%1 E3%hange Guwahati Sto%1 E3%hange

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0&derabad Sto%1 E3%hange Faipur Sto%1 E3%hange Ludhiana Sto%1 E3%hange Madh&a Prade$h Sto%1 E3%hange Madra$ Sto%1 E3%hange Magadh Sto%1 E3%hange Mangalore Sto%1 E3%hange Meerut Sto%1 E3%hange O" E3%hange Of India Pune Sto%1 E3%hange Saura$htra @ut%h Sto%1 E3%hange !ttar Prade$h Sto%1 E3%hange Badodara Sto%1 E3%hange

;ACT,RS

EC,(,MIC A(D P,LITICAL ;ACT,RS

In an e%onom& li1e India' whi%h i$ %ommitted to demo%rati% $o%iali$m' planned de.elopment and $tate %ontrol through regulation' the $tate poli%& pla&$ a .ital role in$ to%1 mar1et/ State mea$ure$ a$ refle%ted in legi$lation' budget' indu$trial poli%&' and ta3ation propo$al' %u$tom dutie$' fi$%al poli%&' are .ital important for the $to%1 mar1et/

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"he liberal $%heme for attra%ting ?RI in.e$tment$ in India ha$ re$ulted in in.e$tment in almo$t all 1ind of indu$trie$/ Operator$ wat%h the pre$entation of %entral budget with great an3iet& to 1now and to $ee the affe%t of $ame on the $to%1 mar1et/ "he $to%1 mar1et i$ one of the mo$t politi%all& $en$iti.e mar1et$ and politi%al de.elopment and %hange in the politi%al $et up affe%t the $hare pri%e$/ E.en a %hange in the portfolio$ of the %abinet$ mini$ter$ bring out %hange in the $hare pri%e$/ Share mar1et i$ h&per$en$iti.e to $u%h %hange $o mu%h $o that e.en a $pee%h b& $tate$men at the parti%ular time %an affe%t the $hare pri%e$/ So ad.er$el& that within a few hour$ man& a number of per$on %on%ern with the mar1et ma1e$ with a huge profit$ or $uffer lo$$e$/

PSDC',L,GICAL ;ACT,RS
P$&%hologi%al fa%tor$ of in.e$tor$ pla& a .er& .ital role in determining the pri%e$ of the $e%uritie$ and flu%tuation in their pri%e$/ ;or e3ample 0indu operator regard$ Moorat da& a$ the mo$t au$pi%iou$ da& and an& bu$ine$$ tran$a%ted on that da& i$ regarded a$ a wor1 of $ome in.i$ible di.ine power/ "he re$ult of that da& trading ha$ a p$&%hologi%al effe%t o their trading in general and go.ern$ their operation$/ Ihile internal fa%tor at the mi%ro le.el ma& attempt to pinpoint fa%tor$ affe%ting the $to%1 mar1et I the true e%onomi% $en$e that would e3plain the pattern of the beha.ior of $hare pri%e$ in general and indi.idual $hare$ in parti%ular$/

MISCELLA(E,US ;ACT,RS
A/ DEMA(D A(D SUPPLD EBULI)IRIUM One of the main fa%tor$ that bring about $hort term o$%illation in the $hare pri%e$ i$ the %hange in the demand and $uppl& of a parti%ular $hare in the $to%1/ An in%rea$e in it$ demand or de%rea$e in $uppl& would alwa&$ tend to rai$e the pri%e and .i%e .er$a/ Page <> of 4/ RELIGARE SE !RI"IES LIMI"ED#

B/ TEC'I(CAL MAR7ET P,SITI,(

Share pri%e$ to a .er& great e3tent8 depend on the te%hni%al po$ition of the mar1et/ At a parti%ular moment' when $hare pri%e$ in general are $table' but the$e happen$ to be a $pe%ulati.e intere$t in a parti%ular $hare' it$ pri%e$ are li1el& to $tart rai$ing' unle$$ it i$ %ountera%ted b& $ome other powerful fa%tor' when the mar1et ha$ tenden%& to ri$e' a number of bull operator$ %ome forward and ma1e pur%ha$e$ in the hope of further ri$e in the pri%e$' e.en be&ond their %apa%it&' a $light de%line in the pri%e would for%e the$e operator$ to $ell their $hare in order limit their lo$$e$ to an amount/ "hen are able to bear/ Su%h $ale$ bring about a further depre$$ion in pri%e$ and when $u%h $ituation$ ari$e' the mar1et i$ $aid to be te%hni%all& wea1/ Ihene.er pri%e$ ha.e ri$en to their pea1 le.el and the mar1et i$ not .er& $trong' on $light unfa.orable de.elopment' the mar1et fall to it$ bottom/ Man& time$ it i$ e3pe%ted that a parti%ular happening would pu$h up the pri%e$ of a parti%ular $hare$' but $ome time when the e.ent a%tuall& happen$ the pri%e$ in$tead of rai$ing fall$/ In $to%1 mar1et it i$ a fa%t that operator are more intere$ted in the anti%ipation rather then in the real e.ent' it i$ the thrill of un%ertainl& that %au$e the wrangle$ between bear$ and bull$/

/ PU)LIC ,PI(I,(
Share pri%e mo.ement$ mainl& depend upon publi% opinion i/e/ what people thin1 about the pre$ent or future of a parti%ular %ompan&/ Publi% opinion i$ often %reated b& the pre$$ publi%it&/ At one time' one $%rip i$ fa.ored8 while at another point of time the other/ A$ re$ult of publi% opinion often there ari$e$ a $udden and in%rea$e demand for a $e%urit&' whi%h on a%%ount of pre.iou$ ill fa.or$ toughne$$ of the pri%e$ ha.e been negle%ted and thi$ would rai$e' it$ pri%e in portion to the new le.el of demand/ Sentiment$ ha.e an all pre.ailing influen%e on the $hare pri%e mo.ement$/

D/ 9ARS A(D CRISIS SITUATI,(

Iar i$ might& uphea.al that bring about the %hange$ in all $phere$ of bu$ine$$ a%ti.it& and $hare mar1et i$ not an e3%eption/ Share $how all round %hange to a .er& large e3tend/

E3 SPECULATI,(
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A$ in the $to%1 mar1et there are three main t&pe$ of operator$ whi%h operate$ the $to%1 mar1et are a$ bull' bear' and $tag/ "he$e three are the $pe%ulator$ and %ontrol the pri%e$ of the $e%uritie$ in the mar1et and di.e$t them a$ per their %hoi%e of and appli%abilit& of in%rea$e or de%rea$e/

;/ 9,R7I(G ,; ;,REIG( I(5EST,R

Sto%1 mar1et i$ not an inland mar1et' but wor1$ on the international ba$i$' due to whi%h' the $to%1 and $e%uritie$ traded in are $old and pur%ha$ed b& foreign in.e$tor/ If the $upport of foreign in.e$tor and in$titution i$ good' the pri%e will ri$e but if the& remain ina%ti.e and doe$ not ma1e$ appropriate pur%ha$e$' the pri%e$ will de%line in .i%e .er$a/

G/SUPP,RT I(STITUTI,(S

,;

5ARI,US

G,5ER(ME(T

;I(A(CIAL

Our $hare mar1et i$ one whi%h mo.e$ on the ba$i$ the wa& the go.ernment li1e$/ Go.ernment ha$ it$ own .ariou$ finan%ial in$titution$ bodie$ whi%h wor1$ on behalf of go.ernment and regulate the $hare pri%e$ of !"I' IDBI' I I I et%/ there main wor1 i$ to $a.e the normal in.e$tor from the lo$$e$ ari$e$ due to hea.& in%rea$e or de%rea$e in the pri%e$ of $e%uritie$/

SECURITIES CONTRACTS (REGULATION) ACT, 1956

"he Se%uritie$ ontra%t$ DRegulationE A%t' ,O>M TS DREAV pro.ide$ for dire%t and indire%t %ontrol of .irtuall& all a$pe%t$ of $e%uritie$ trading and the running of $to%1 e3%hange$ and aim$ to pre.ent unde$irable tran$a%tion$ in $e%uritie$/ It gi.e$ entral Go.ernment regulator& -uri$di%tion o.er DaE $to%1 e3%hange$ through a pro%e$$ of re%ognition and %ontinued $uper.i$ion' DbE %ontra%t$ in $e%uritie$' and D%E li$ting of $e%uritie$ on $to%1 e3%hange$/ All the three are di$%u$$ed $ub$e6uentl& in thi$ $e%tion/ "he S DREA' ,O>M wa$ ena%ted to pre.ent unde$irable tran$a%tion$ in $e%uritie$ b& regulating the bu$ine$$ of dealing therein and b& pro.iding for %ertain other matter$ Page <4 of 4/ RELIGARE SE !RI"IES LIMI"ED#

%onne%ted therewith/ "hi$ i$ the prin%ipal A%t' whi%h go.ern$ the trading of $e%uritie$ in India/ A$ a %ondition of re%ognition' a $to%1 e3%hange %omplie$ with %ondition$ pre$%ribed b& entral Go.ernment/ Organi$ed trading a%ti.it& in $e%uritie$ ta1e$ pla%e on a re%ogni$ed $to%1 e3%hange/

Recognition o" &toc$ e?c%ange&

B& .irtue of the pro.i$ion$ of the A%t' the bu$ine$$ of dealing in $e%uritie$ %annot be %arried out without a regi$tration from SEBI/ An& Sto%1 E3%hange whi%h i$ de$irou$ of being re%ogni$ed ha$ to ma1e an appli%ation under Se%tion < of the A%t to SEBI' whi%h i$ empowered to grant re%ognition and pre$%ribe %ondition$/ "hi$ re%ognition %an be withdrawn in the intere$t of the trade or publi%/ SEBI i$ authori$ed to %all for periodi%al return$ from the re%ogni$ed Sto%1 E3%hange$ and ma1e en6uirie$ in relation to their affair$/ E.er& Sto%1 E3%hange i$ obliged to furni$h annual report$ to SEBI/ Re%ogni$ed Sto%1 E3%hange$ are allowed to ma1e b&law$ for the regulation and %ontrol of %ontra%t$ but $ub-e%t to the pre.iou$ appro.al of SEBI and SEBI ha$ the power to amend the $aid b&law$/ "he entral Go.ernment and SEBI ha.e the power to $uper$ede the go.erning bod& of an& re%ogni$ed $to%1 e3%hange/

SECURITIES CONTRACTS (REGULATION) RULES, 1957

"he entral Go.ernment ha$ made Se%uritie$ ontra%t$ DRegulationE Rule$' ,O>L' a$ re6uired b& $ubC$e%tion D<E of the Se%tion <) of the Se%uritie$ %arr&ing out the purpo$e$ of that A%t/ Contracts bet$een members of recognised stock e%c"ange All %ontra%t$ between the member$ of a re%ogni$ed $to%1 e3%hange $hould be %onfirmed in writing and $hould be enfor%ed in a%%ordan%e with the rule$ and b&eClaw$ of the $to%1 e3%hange of whi%h the& are member$ DRule OE/ Page </ of 4/ RELIGARE SE !RI"IES LIMI"ED# ontra%t$ DRegulationEA%t' ,O>M for

Maintenance&Preser'ation of Books of account and ot"er documents ,/ E.er& member of a re%ogni$ed $to%1 e3%hange $hould maintain and pre$er.e the following boo1$ of a%%ount and do%ument$ for a period of "ive &ear$2 DaE Regi$ter of tran$a%tion$ DSauda boo1E/ DbE lient$G ledger/ D%E General ledger/ DdE Fournal$/ DeE a$h boo1/ DfE Ban1 pa$$Cboo1/ DgE Do%ument$ regi$ter $howing full parti%ular$ of $hare$ and $e%uritie$ re%ei.ed and deli.ered/ (/ E.er& member of a re%ogni$ed $to%1 e3%hange $hould maintain and pre$er.e the following do%ument$ for a period of t*o &ear$2 DaE Member$G %ontra%t boo1$ $howing detail$ of all %ontra%t$ entered into b& him with other member$ of the $ame e3%hange or %ounterCfoil$ or dupli%ate$ of memo$ of %onfirmation i$$ued to $u%h other member$/ DbE ounterCfoil$ or dupli%ate$ of %ontra%t note$ i$$ued to %lient$/ D%E Iritten %on$ent of %lient$ in re$pe%t of %ontra%t$ entered into a$ prin%ipal$/ DRule ,>E

SECURITIES AND EXCHANGE BOARD OF INDIA ACT, 1992

Capital Issues (Control) !ct* +,-. "he A%t had it$ origin during the war in ,O=< when the ob-e%ti.e wa$ to %hannel re$our%e$ to $upport the war effort/ It wa$ retained with $ome modifi%ation$ a$ a mean$ of %ontrolling the rai$ing of %apital b& %ompanie$ and to en$ure that national re$our%e$ were %hannelled into proper line$' i/e/' for de$irable purpo$e$ to $er.e goal$ and prioritie$ of the go.ernment' and to prote%t the intere$t$ of in.e$tor$/ !nder the A%t' an& firm wi$hing to i$$ue $e%uritie$ had to obtain appro.al from the entral Go.ernment' whi%h al$o Page <@ of 4/ RELIGARE SE !RI"IES LIMI"ED#

determined the amount' t&pe and pri%e of the i$$ue/ A$ a part of the liberali$ation pro%e$$' the A%t wa$ repealed in Ma& ,OO( pa.ing wa& for mar1et determined allo%ation of re$our%e$/ Iith thi$' Go.ernment4$ %ontrol o.er i$$ue$ of %apital' pri%ing of the i$$ue$' fi3ing of premia and rate$ of intere$t on debenture$ et%/ %ea$ed' and the offi%e whi%h admini$tered the A%t wa$ aboli$hed2 the mar1et wa$ allowed to allo%ate re$our%e$ to %ompeting u$e$/ 0owe.er' to en$ure effe%ti.e regulation of the mar1et' SEBI A%t' ,OO( wa$ ena%ted to e$tabli$h SEBI with $tatutor& power$ for DaE prote%ting the intere$t$ of in.e$tor$ in $e%uritie$' DbE promoting the de.elopment of the $e%uritie$ mar1et' and D%E regulating the $e%uritie$ mar1et/ It %an %ondu%t en6uirie$' audit$ and in$pe%tion of all %on%erned and ad-udi%ate offen%e$ under the A%t/ It ha$ power$ to regi$ter and regulate all mar1et intermediarie$ and al$o to penali$e them in %a$e of .iolation$ of the pro.i$ion$ of the A%t' Rule$ and Regulation$ made thereunder/ SEBI ha$ full autonom& and authorit& to regulate and de.elop an orderl& $e%uritie$ mar1et/ It$ regulator& -uri$di%tion e3tend$ o.er %ompanie$ li$ted on Sto%1 E3%hange$ and %ompanie$ intending to get their $e%uritie$ li$ted on an& re%ogni$ed $to%1 e3%hange in the i$$uan%e of $e%uritie$ and tran$fer of $e%uritie$' in addition to all intermediarie$ and per$on$ a$$o%iated with $e%uritie$ mar1et/ SEBI %an $pe%if& the matter$ to be di$%lo$ed and the $tandard$ of di$%lo$ure re6uired for the prote%tion of in.e$tor$ in re$pe%t of i$$ue$8 %an i$$ue dire%tion$ to all intermediarie$ and other per$on$ a$$o%iated with the $e%uritie$ mar1et in the intere$t of in.e$tor$ or of orderl& de.elopment of the $e%uritie$ mar1et8 and %an %ondu%t en6uirie$' audit$ and in$pe%tion of all %on%erned and ad-udi%ate offen%e$ under the A%t/ In $hort' it ha$ been gi.en ne%e$$ar& autonom& and authorit& to regulate and de.elop an orderl& $e%uritie$ mar1et/ All the intermediarie$ and per$on$ a$$o%iated with $e%uritie$ mar1et' .i7/' $to%1 bro1er$ and $ubCbro1er$' underwriter$' mer%hant ban1er$' ban1er$ to the i$$ue' $hare tran$fer agent$ and regi$trar$ to the i$$ue' depo$itorie$' depo$itor& parti%ipant$' portfolio manager$' debenture$ tru$tee$' foreign in$titutional in.e$tor$' %u$todian$' .enture %apital fund$' mutual fund$' %olle%ti.e in.e$tment$ $%heme$' %redit rating agen%ie$' et%/' $hall be regi$tered with SEBI and $hall be go.erned b& the SEBI Regulation$ pertaining to re$pe%ti.e mar1et intermediar&/ Constitution of S/BI

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"he

entral Go.ernment ha$ %on$tituted a Board b& the name of SEBI under Se%tion < of

SEBI A%t/ "he head offi%e of SEBI i$ in Mumbai/ SEBI ma& e$tabli$h offi%e$ at other pla%e$ in India/ SEBI %on$i$t$ of the following member$' namel&2 DaE A hairman DbE "wo member$ from among$t the offi%ial$ of the Mini$tr& of the dealing with ;inan%e and admini$tration of the ompanie$ A%t' ,O>M D%E One member from among$t the offi%ial$ of the Re$er.e Ban1 DdE ;i.e other member$ of whom at lea$t three $hould be the wholeCtime member$ "he general $uperintenden%e' dire%tion and management of the affair$ of SEBI .e$t$ in a Board of Member$' whi%h e3er%i$e$ all power$ and do all a%t$ and thing$ whi%h ma& be e3er%i$ed or done b& SEBI/ "he hairman and the other member$ are from among$t the per$on$ of abilit&' integrit& and $tanding who ha.e $hown %apa%it& in dealing with problem$ relating to $e%uritie$ mar1et or ha.e $pe%ial 1nowledge or e3perien%e of law' finan%e' e%onomi%$' a%%ountan%&' admini$tration or in an& other di$%ipline whi%h' in the opinion of the entral Go.ernment' $hall be u$eful to SEBI/ 0unctions of S/BI A%%ording to Se%tion ,, of SEBI A%t' ,OO(' SEBI ha$ been obligated to prote%t the intere$t$ of the in.e$tor$ in $e%uritie$ and to promote the de.elopment of and to regulate the $e%uritie$ mar1et b& $u%h mea$ure$ a$ it thin1$ fit/ "he mea$ure$ ma& pro.ide for2 DaE regulating the bu$ine$$ in $to%1 e3%hange$ and an& other $e%uritie$ mar1et$8 DbE regi$tering and regulating the wor1ing of $to%1 bro1er$' $ubCbro1er$' $hare tran$fer agent$' ban1er$ to an i$$ue' tru$tee$ of tru$t deed$' regi$trar$ to an i$$ue' mer%hant ban1er$' underwriter$' portfolio manager$' in.e$tment ad.i$er$ and $u%h other intermediarie$ who ma& be a$$o%iated with $e%uritie$ mar1et$ in an& manner8 D%E regi$tering and regulating the wor1ing of the depo$itorie$' parti%ipant$' %u$todian$ of $e%uritie$' foreign in$titutional in.e$tor$' %redit rating agen%ie$ and $u%h other intermediarie$ a$ SEBI ma&' b& notifi%ation' $pe%if& in thi$ behalf8 DdE Regi$tering and regulating the wor1ing of .enture %apital fund$ and %olle%ti.e in.e$tment $%heme$ in%luding mutual fund$8 DeE Promoting and regulating $elfCregulator& organi$ation$8 DfE Prohibiting fraudulent and unfair trade pra%ti%e$ relating to $e%uritie$ mar1et$8 DgE Promoting in.e$tor$G edu%ation and training of intermediarie$ of $e%uritie$ mar1et$8 Page >1 of 4/ RELIGARE SE !RI"IES LIMI"ED# entral Go.ernment

DhE Prohibiting in$ider trading in $e%uritie$8 DiE Regulating $ub$tantial a%6ui$ition of $hare$ and ta1eCo.er of %ompanie$8 D-E %alling for information from' underta1ing in$pe%tion' %ondu%ting in6uirie$ and audit$ of the $to%1 e3%hange$' mutual fund$' other per$on$ a$$o%iated with the $e%uritie$ mar1et ! intermediarie$ and $elf regulator& organi7ation$ in the $e%uritie$ mar1et8 D1E %alling for information and re%ord from an& ban1 or an& other authorit& or board or %orporation e$tabli$hed or %on$tituted b& or under an& entral' State or Pro.in%ial A%t in re$pe%t of an& tran$a%tion in $e%uritie$ whi%h i$ under in.e$tigation or in6uir& b& the Board8 DlE performing $u%h fun%tion$ and e3er%i$ing $u%h power$ under the pro.i$ion$ of Se%uritie$ ontra%t$ DRegulationE A%t' ,O>M' a$ ma& be delegated to it b& the entral Go.ernment8 DmE le.&ing fee$ or other %harge$ for %arr&ing out the purpo$e of thi$ $e%tion8 DnE %ondu%ting re$ear%h for the abo.e purpo$e$8 DoE %alling from or furni$hing to an& $u%h agen%ie$' a$ ma& be $pe%ified b& SEBI' $u%h information a$ ma& be %on$idered ne%e$$ar& b& it for the effi%ient di$%harge of it$ fun%tion$8 DpE performing $u%h other fun%tion$ a$ ma& be pre$%ribed/ A%%ording to Se%tion ,,A of SEBI A%t' ,OO(' SEBI ma&' for the prote%tion of in.e$tor$' DaE $pe%if&' b& regulation$' DiE the matter$ relating to i$$ue of %apital' tran$fer of $e%uritie$ and other matter$ in%idental thereto8 and DiiE the manner in whi%h $u%h matter$' $hall be di$%lo$ed b& the %ompanie$ DbE b& general or $pe%ial order$' DiE prohibit an& %ompan& from i$$uing of pro$pe%tu$' an& offer do%ument' or ad.erti$ement $oli%iting mone& from the publi% for the i$$ue of $e%uritie$' DiiE $pe%if& the %ondition$ $ub-e%t to whi%h the pro$pe%tu$' $u%h offer do%ument or ad.erti$ement' if not prohibited ma& be i$$ued/ DSe%tion ,,AE/ Registration of Intermediaries "he intermediarie$ a$$o%iated with $e%uritie$ mar1et $hould bu&' $ell or deal in $e%uritie$ after obtaining a %ertifi%ate of regi$tration from SEBI' a$ re6uired b& Se%tion ,(2 ,E Sto%1Cbro1er' (E SubCbro1er' Page >- of 4/ RELIGARE SE !RI"IES LIMI"ED#

<E Share tran$fer agent' =E Ban1er to an i$$ue' >E "ru$tee of tru$t deed' ME Regi$trar to an i$$ue' LE Mer%hant ban1er' *E !nderwriter' OE Portfolio manager' ,)E In.e$tment ad.i$er ,,E Depo$itor&'
12) Depository participant 13) Custodian of securities, 14) Foreign institutional investor, 15) Credit rating agency, 16) Collective investment schemes, 1 ) !enture capital funds, 1") #utual funds, and 1$) %ny other intermediary associated &ith the securities mar'et(

RESEARC' BUESTI,(S
,/ 0ow do male and female emplo&ee$4 per%eption$ differ about di.er$it& $tatu$J

(/ 0ow do male and female emplo&ee$ a%ro$$ %ategorie$ .iew emplo&er$4 effort$ to promote di.er$it&J

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</ 0ow do male and female emplo&ee$ a%ro$$ %ategorie$ differ on the i$$ue$ li1e a%%e$$ to de.elopment opportunitie$' .aluing di.er$it&' organi7ational $upport' and the %ompeten%e and produ%ti.it& of emplo&ee$J

RESEARC' MET',D,L,GD

,)HECTI5ES2
;ollowing re$ear%h 6ue$tion %ame to m& mind to an$wer the$e 6ue$tion$ following ob-e%ti.e and $ub ob-e%ti.e ha.e been $et/

,/ "o $tud& the impa%t of gender di.er$it& on inno.ation in organi7ational $etting$/

(/ "o $tudie$ the differen%e in per%eption in about di.er$it& $tatu$ between male and female emplo&ee$/

</ "o under$tand the differen%e between male and female emplo&ee$ on the ba$i$ of de.elopment opportunitie$ ' %ompeten%e and produ%ti.it&/

RESEARC' DESIG( ,/ Sele%ti.e t&pe of re$ear%h2 Parameter$ of $tud&2 Gender di.er$it& 5 inno.ation$ in organi7ational $etting$ i$ to be de$%ribed/ "herefore de$%ripti.e re$ear%h ha$ been $ele%ted/ (/ Sampling $i7e2 ?o of $ample ,)) out of total number of uni.er$e >))/ =/Sample te%hni6ue2 Proportionate $tratified te%hni6ue/ >/ Data re6uirement2 Re6uired information will be gathered in the form of primar& data/ Page >< of 4/ RELIGARE SE !RI"IES LIMI"ED#

M/ Data %olle%tion te%hni6ue2 Wue$tionnaire method will be u$e/ L/ Data %olle%tion in$trument2 Stru%tured 6ue$tionnaire will be de$igned */ Anal&$i$ of data2 Dedu%ti.e anal&$i$ will be done through $uitable $tati$ti%al te%hni6ue/ O/ Operational methodolog&2 Wue$tionnaire will be handed o.er to the re$ponded in a fa%e to fa%e intera%tion 5 re$pondent will re6ue$t to fill in the 6ue$tionnaire in pre$en%e of re$ear%her/

LIMITATI,(2

13 "he $ample $i7e wa$ ,))' whi%h pro.ed a limitation for me/

-3 I had a problem of time be%au$e the pro-e%t wa$ time bounded/

:3 "hi$ $tud& i$ ba$ed on primar& data/ So' the probabilit& of per$onal bia$ %annot be ruled out/

<3 Mo$t of the re$pondent$ were not .er& helpful and $in%e the& were not ha.ing management 6ualifi%ation/ I had to ma1e thing$ under$tand to them e.er& time/ >3 Some women re$pondent$ are intro.ert in nature/ So it ma1e$ diffi%ult to ta1e $uitable feedba%1 from them/

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DATA A(ALDSIS A(D I(TERPRETATI,(

;ollowing are the Wue$tionnaireC 13 Doe& organiIation be#ieve t%ere i& advantage in recruiting a gender diver&e &ta""F a3DES b3(,

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A#'anta$ e n recr%t n$$ en#er # 'er!e ! ta((

NO 30%

YES 70%

I(TERPRETATI,(2 <)N of population interpreted no 5 L)N of population interpreted that there are ad.antage in re%ruiting gender di.er$e $taff/

De& Ma#e <. 4. "ema#e :.

(o 1. -. :. >. >. 1..

(u## ' pot%e&i& ('o+2 organi7ation belie.e$ there i$ no ad.antage in re%ruiting a gender di.er$e $taff3 A#ternative ' pot%e&i& ('1+2 organi7ation belie.e$ there i$ an ad.antage in re%ruiting a gender di.er$e $taff Leve# o" &igni"icance J>K Tota# number o" re&pondent& J (<.L:.L1.L-.+J1.. E?pected "reEuenc J(Ei+J "otal number of re$pondent$9no of opinion$X,OO9(X>) 0I SW!ARE D3(E X Y TDOiCEiE (9 EiV Ihere Oi X Ob$er.ed fre6uen%& Ei X E3pe%ted fre6uen%& "ABLE %al%ulation of ( Opinion Male who $a& &e$ ;emale who $a& &e$ Page >4 of 4/ Ob$er.ed fre6uen%& DOiE E3pe%ted fre6uen%& DEiE =) <> ,) ,> DOiCEiE > C> DOiCEiE( (> (> DOiCEiE(9Ei )/L, ,/MM

RELIGARE SE !RI"IES LIMI"ED#

Male who $a& no ;emale who $a& no

<) <> () ,>

C> >

(> (>

)/L, ,/MM =/L=

Y TDOiCEiE(9EiVX =/L= Degree$ of freedomXDrC,ED%C,EXD(C,ED(C,EX, "he table .alue of ( for degree of freedom ,' at >N le.el of $ignifi%an%e i$ </*= ( %omputed .alue X =/L= Ie %an $ee that the %al%ulated .alue i$ greater than the table .alue $o the null h&pothe$i$ will be re-e%ted and the alternati.e h&pothe$i$ will be a%%epted/ -3 Doe& organiIation in&ure t%at bot% *omen and men are in intervie* pane#F a3DES b3(,

B oth )om en an# m en n nter' e) *ane"

NO 20%

YES 80%

I(TERPRETATI,(2 ()N of population interpreted no 5 *)N of population interpreted that both women and men $hould be in inter.iew panel/

De& Ma#e :> "ema#e <>

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/.

-.

1..

(u## ' pot%e&i& ('o+2 both men and women won4t be in the inter.iew panel A#ternative ' pot%e&i& ('1+2 both men and women will be in the inter.iew panel Leve# o" &igni"icance J>K Tota# number o" re&pondent& J (:>L1>L<>L>+J1.. E?pected "reEuenc J (Ei+J "otal number of re$pondent$9no of opinion$X,OO9(X>) 0I SW!ARE D3(E X Y TDOiCEiE (9 EiV Ihere Oi X Ob$er.ed fre6uen%& Ei X E3pe%ted fre6uen%& "ABLE %al%ulation of ( Opinion Male who $a& &e$ ;emale who $a& &e$ Male who $a& no ;emale who $a& no Ob$er.ed fre6uen%& DOiE <> => ,> > E3pe%ted fre6uen%& DEiE =) =) ,) ,) DOiCEiE C> > > C> DOiCEiE( (> (> (> (> DOiCEiE(9Ei )/M< )/M< ,/ML > L/O<

M N(,i0Ei+-OEiPJ 43@: Degree$ of freedomXDrC,ED%C,EXD(C,ED(C,EX, "he table .alue of ( for degree of freedom ,' at >N le.el of $ignifi%an%e i$ </*= ( %omputed .alue X L/O< So we %an $ee that the table .alue i$ le$$ than the %al%ulated .alue/ So the null h&pothe$i$ will be re-e%ted and the alternati.e h&pothe$i$ will be a%%epted/

:3 Doe& organiIation en&ure t%at app#ication& "rom "ema#e candidate& are active# mobi#iIedF a3 De& b3 (o c3 Sometime&

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A**" cat on(rom(em a"e can# #ate! are act 'e"y m o+" , e#
SOMETIMES 10% NO 30%

YES 60%

I(TERPRETATI,(2 <)N of population interpreted &e$ <)N $aid no 5 ,)Nof population interpreted that $ometime$ the organi7ation en$ure$ that appli%ation$ from female %andidate$ are a%ti.el& mobili7ed/

De& Ma#e :=. "ema#e -/

(o 1= 1< :.

Sometime& / 1. >. >. 1..

(u## ' pot%e&i& ('o+2 appli%ation$ from female %andidate$ are a%ti.el& mobili7ed/ A#ternative ' pot%e&i& ('1+2 appli%ation$ from female %andidate$ are not a%ti.el& mobili7ed/ Leve# o" &igni"icance J>K Tota# number o" re&pondent& J (:-L-/L1=L1<L-L/+J1.. E?pected "reEuenc J (Ei+J "otal number of re$pondent$9no of opinion$X,OO9<X<</<< 0I SW!ARE D3(E X Y TDOiCEiE (9 EiV Ihere Oi X Ob$er.ed fre6uen%& Ei X E3pe%ted fre6uen%& "ABLE %al%ulation of ( Opinion Male who $a& &e$ ;emale who $a& &e$ Page =. of 4/ RELIGARE SE !RI"IES LIMI"ED# Ob$er.ed fre6uen%& DOiE E3pe%ted DOiCEiE fre6uen%& DEiE ( <( <) (* <) C( DOiCEiE( = = DOiCEiE(9Ei )/,< )/,<

Male who $a& no ;emale who $a& no Male who $a& $ometime$ ;emale who $a& $ometime$

,M ,= ( *

,> ,> > >

, C, C< <

, , O O

)/)ML )/)ML ,/* ,/* </OO=

M N(,i0Ei+-OEiPJ :3@@< Degree$ of freedomXDrC,ED%C,EXD<C,ED(C,EX( "he table .alue of ( for degree of freedom (' at >N le.el of $ignifi%an%e i$ >/OO ( %omputed .alue X </OO= So we %an $ee that the table .alue i$ le$$ than the %al%ulated .alue/ So the null h&pothe$i$ will be re-e%ted and the alternati.e h&pothe$i$ will be a%%epted/ <3 I& organiIation %e#d accountab#e "or generating gender diver&e poo# o" %ig% Eua#it candidateF a3 De& b3 (o

Or$ an !at on re*on! +"e (or $ enerat n$$ en#er # 'er!e *oo"
NO 33% YES 67%

I(TERPRETATI,(2 <<N of population interpreted no 5 MLN of population interpreted that organi7ation i$ re$pon$ible for generating gender di.er$e pool/

De& Ma#e :> "ema#e :Page =1 of 4/

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=4

::

1..

(u## ' pot%e&i& ('o+2 organi7ation i$ re$pon$ible for generating gender di.er$e pool A#ternative ' pot%e&i& ('1+2 organi7ation i$ not re$pon$ible for generating gender di.er$e pool Leve# o" &igni"icance J>K Tota# number o" re&pondent& J (:>L1>L:-L1/+J1.. E?pected "reEuenc J (Ei+ J "otal number of re$pondent$9no of opinion$X,OO9(X>) 0I SW!ARE D3(E X Y TDOiCEiE (9 EiV Ihere Oi X Ob$er.ed fre6uen%& Ei X E3pe%ted fre6uen%& "ABLE %al%ulation of ( Opinion Male who $a& &e$ ;emale who $a& &e$ Male who $a& no ;emale who $a& no Ob$er.ed fre6uen%& DOiE <> <( ,> ,* E3pe%ted fre6uen%& DEiE <</> <</> ,M/> ,M/> DOiCEiE ,/> C,/> C,/> ,/> DOiCEiE( (/(> (/(> (/(> (/(> DOiCEiE(9Ei )/)L )/)L )/,= )/,= ,/,=

M N(,i0Ei+-OEiPJ 131< Degree$ of freedomXDrC,ED%C,EXD(C,ED(C,EX, "he table .alue of ( for degree of freedom ,' at >N le.el of $ignifi%an%e i$ </*= ( %omputed .alue X ,/,=

So we %an $ee that the table .alue i$ greater than the %al%ulated .alue/ So the null h&pothe$i$ will be a%%epted and the alternati.e h&pothe$i$ will be re-e%ted/ >3 Are *omen repre&ented in t%e %ead o" t%e departmentF a3 De& b3 (o

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W om en re*re!entat 'e (or H OYES 40% NO 60%

I(TERPRETATI,(2 M)N of population interpreted no 5 =)N of population interpreted that there $hould be women repre$ented in the head of the department/

De& Ma#e 1/ <. "ema#e --

(o :-/ =. >. >. 1..

(u## ' pot%e&i& ('o+2 no women repre$entati.e for 0OD A#ternative ' pot%e&i& ('1+2 women repre$entati.e for 0OD Leve# o" &igni"icance J>K Tota# number o" re&pondent& J (1/L:-L--L-/+ J1.. E?pected "reEuenc J (Ei+ J "otal number of re$pondent$9no of opinion$X,OO9(X>) 0I SW!ARE D3(E X Y TDOiCEiE (9 EiV Ihere Oi X Ob$er.ed fre6uen%& Ei X E3pe%ted fre6uen%& "ABLE %al%ulation of ( Opinion Male who $a& &e$ ;emale who $a& &e$ Page =: of 4/ RELIGARE SE !RI"IES LIMI"ED# Ob$er.ed fre6uen%& DOiE E3pe%ted fre6uen%& DEiE ,* () (( () DOiCEiE C( ( DOiCEiE( = = DOiCEiE(9Ei )/( )/(

Male who $a& no ;emale who $a& no

<( <) (* <)

( C(

= =

)/,< )/,< )/MM

M N(,i0Ei+-OEiPJ .3== Degree$ of freedomXDrC,ED%C,EXD(C,ED(C,EX, "he table .alue of ( for degree of freedom ,' at >N le.el of $ignifi%an%e i$ </*= ( %omputed .alue X )/MM

So we %an $ee that the table .alue i$ greater than the %al%ulated .alue/ So the null h&pothe$i$ will be a%%epted and the alternati.e h&pothe$i$ will be re-e%ted/ =3 Doe& t%e organiIation re*ard peop#e *%o ta$e initiative "or cu#tura# program in t%e organiIationF a3 De& b3 (o

R e)ar# (or n t at n$ n c%"t%ra" *ro$ ram

NO 35% YES 65%

I(TERPRETATI,(2 <>N of population interpreted no 5 M>N of population interpreted that organi7ation reward people who ta1e initiati.e for %ultural program/

De& Ma#e
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(o 14 >.
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::

"ema#e :=>

1/ :>

>. 1..

(u## ' pot%e&i& ('o+2 organi7ation $hould reward people who ta1e initiati.e for %ultural program A#ternative ' pot%e&i& ('1+2 organi7ation $hould not reward people who ta1e initiati.e for %ultural program Leve# o" &igni"icance J>K Tota# number o" re&pondent& J (::L:-L14L1/+ J1.. E?pected "reEuenc J (Ei+ J "otal number of re$pondent$9no of opinion$X,OO9(X>) 0I SW!ARE D3(E X Y TDOiCEiE (9 EiV Ihere Oi X Ob$er.ed fre6uen%& Ei X E3pe%ted fre6uen%& "ABLE %al%ulation of ( Opinion Male who $a& &e$ ;emale who $a& &e$ Male who $a& no ;emale who $a& no Ob$er.ed fre6uen%& DOiE << <( ,L ,* E3pe%ted fre6uen%& DEiE <(/> <(/> ,L/> ,L/> DOiCEiE )/> C)/> C)/> )/> DOiCEiE( )/(> )/(> )/(> )/(> DOiCEiE(9Ei )/))* )/))* )/),= )/),= )/)==

M N(,i0Ei+-OEiPJ .3.<< Degree$ of freedomXDrC,ED%C,EXD(C,ED(C,EX, "he table .alue of ( for degree of freedom ,' at >N le.el of $ignifi%an%e i$ </*= ( %omputed .alue X )/)== So we %an $ee that the table .alue i$ greater than the %al%ulated .alue/ So the null h&pothe$i$ will be a%%epted and the alternati.e h&pothe$i$ will be re-e%ted/ 43 Doe& t%e organiIation %ave an adeEuate maternit #eave "or birt% o" a c%i#dF a3 De& b3 (o

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A#e.%atem atern ty "ea'e

NO 10%

YES 90%

I(TERPRETATI,(2 ,)N of population interpreted no 5 O)N of population interpreted that the organi7ation$ ha.e an ade6uate maternit& lea.e for birth of a %hild/

De& Ma#e <: @. "ema#e <4

(o 4 : 1. >. >. 1..

(u## ' pot%e&i& ('o+2 organi7ation$ ha.e an ade6uate maternit& lea.e for birth of a %hild/ A#ternative ' pot%e&i& ('1+2 organi7ation$ $hould not ha.e an ade6uate maternit& lea.e for birth of a %hild/ Leve# o" &igni"icance J>K Tota# number o" re&pondent& J (<:L<4L4L:+ J1.. E?pected "reEuenc J (Ei+ J "otal number of re$pondent$9no of opinion$X,OO9(X>) 0I SW!ARE D3(E X Y TDOiCEiE (9 EiV Ihere Oi X Ob$er.ed fre6uen%& Ei X E3pe%ted fre6uen%& "ABLE %al%ulation of ( Opinion Male who $a& &e$ Page == of 4/ RELIGARE SE !RI"IES LIMI"ED# Ob$er.ed fre6uen%& DOiE E3pe%ted fre6uen%& DEiE =< => DOiCEiE C( DOiCEiE( = DOiCEiE(9Ei )/)O

;emale who $a& &e$ Male who $a& no ;emale who $a& no

=L => L > < >

( ( C(

= = =

)/)O )/* )/* ,/L*

M N(,i0Ei+-OEiPJ 134/ Degree$ of freedomXDrC,ED%C,EXD(C,ED(C,EX, "he table .alue of ( for degree of freedom ,' at >N le.el of $ignifi%an%e i$ </*= ( %omputed .alue X ,/L* So we %an $ee that the table .alue i$ greater than the %al%ulated .alue/ So the null h&pothe$i$ will be a%%epted and the alternati.e h&pothe$i$ will be re-e%ted/ /3 Doe& t%e organiIation & &tematica## monitor attrition rate& o" *omen and menF a3 De& b3 (o

A ttr t on rate o( m en an# )om en

YES 45% NO 55%

I(TERPRETATI,(2 >>N of population interpreted no 5 =>N of population interpreted that the organi7ation$ $&$temati%all& monitor attrition rate$ of women and men/

De& Ma#e -: "ema#e -Page =4 of 4/

(o -4 -/ >. >.

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<>

>>

1..

(u## ' pot%e&i& ('o+2 organi7ation$ $hould not $&$temati%all& monitor the attrition rate$ of women and men/ A#ternative ' pot%e&i& ('1+2 organi7ation$ $&$temati%all& monitor attrition rate$ of women and men/ Leve# o" &igni"icance J>K Tota# number o" re&pondent& J (-:L--L-4L-/+ J1.. E?pected "reEuenc J (Ei+ J "otal number of re$pondent$9no of opinion$X,OO9(X>) 0I SW!ARE D3(E X Y TDOiCEiE (9 EiV Ihere Oi X Ob$er.ed fre6uen%& Ei X E3pe%ted fre6uen%& "ABLE %al%ulation of ( Opinion Male who $a& &e$ ;emale who $a& &e$ Male who $a& no ;emale who $a& no Ob$er.ed fre6uen%& DOiE (< (( (L (* E3pe%ted fre6uen%& DEiE ((/> ((/> (L/> (L/> DOiCEiE )/> C)/> C)/> )/> DOiCEiE( )/(> )/(> )/(> )/(> DOiCEiE(9Ei )/), )/), )/))O )/))O )/)<*

M N(,i0Ei+-OEiPJ .3.:/ Degree$ of freedomXDrC,ED%C,EXD(C,ED(C,EX, "he table .alue of ( for degree of freedom ,' at >N le.el of $ignifi%an%e i$ </*= ( %omputed .alue X )/)<* So we %an $ee that the table .alue i$ greater than the %al%ulated .alue/ So the null h&pothe$i$ will be a%%epted and the alternati.e h&pothe$i$ will be re-e%ted/ @3 Doe& t%e organiIation give *omen eEuiva#ent re&pect! #egitimac and aut%orit a& t%e do "or ma#e &ta"" in comparab#e po&itionF a3 De& b3 (o

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A%thor ty /re!*ect to )om en

NO 10%

YES 90%

I(TERPRETATI,(2 ,)N of population interpreted no 5 O)N of population interpreted that the organi7ation$ gi.e women e6ui.alent re$pe%t' legitima%& and authorit& a$ the& do for male $taff in %omparable po$ition/

De& Ma#e << @. "ema#e <=

(o = < 1. >. >. 1..

(u## ' pot%e&i& ('o+2 organi7ation gi.e women e6ui.alent re$pe%t' legitima%& and authorit& a$ the& do for male $taff in %omparable po$ition/ A#ternative ' pot%e&i& ('1+2 organi7ation not gi.e$ women e6ui.alent re$pe%t' legitima%& and authorit& a$ the& do for male $taff in %omparable po$ition/ Leve# o" &igni"icance J>K Tota# number o" re&pondent& J (<<L<=L=L<+ J1.. E?pected "reEuenc J (Ei+ J "otal number of re$pondent$9no of opinion$X,OO9(X>) 0I SW!ARE D3(E X Y TDOiCEiE (9 EiV Ihere Oi X Ob$er.ed fre6uen%& Ei X E3pe%ted fre6uen%& "ABLE %al%ulation of ( Opinion Male who $a& &e$ Page =@ of 4/ Ob$er.ed fre6uen%& DOiE E3pe%ted fre6uen%& DEiE == => DOiCEiE C, DOiCEiE( , DOiCEiE(9Ei )/)(

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;emale who $a& &e$ Male who $a& no ;emale who $a& no

=M => M > = >

, C, ,

, , ,

)/)( )/( )/( )/==

M N(,i0Ei+-OEiPJ .3<< Degree$ of freedomXDrC,ED%C,EX D(C,ED(C,EX, "he table .alue of ( for degree of freedom ,' at >N le.el of $ignifi%an%e i$ </*= ( %omputed .alue X )/== So we %an $ee that the table .alue i$ greater than the %al%ulated .alue/ So the null h&pothe$i$ will be a%%epted and the alternati.e h&pothe$i$ will be re-e%ted/

1.3 Do t%e organiIation ta$e "eedbac$ "rom bot% *omen and men on t%e impact o" po#ic deci&ion and action&F a3 De& b3 (o

F ee#+ac0(romm en an# )om en

NO 15%

YES 85%

I(TERPRETATI,(2 ,>N of population interpreted no 5 *>N of population interpreted that the organi7ation$ ta1e feedba%1 from both women and men on the impa%t of poli%& de%i$ion and a%tion$/

De&
Page 4. of 4/

(o
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Ma#e

</>

/ 4 1>

>. >. 1..

"ema#e <:

(u## ' pot%e&i& ('o+2 Organi7ation$ ta1e feedba%1 from both women and men on the impa%t of poli%& de%i$ion and a%tion$/ A#ternative ' pot%e&i& ('1+2 Organi7ation$ not ta1e feedba%1 from both women and men on the impa%t of poli%& de%i$ion and a%tion$/ Leve# o" &igni"icance J>K Tota# number o" re&pondent& J (<-L<:L/L4+ J1.. E?pected "reEuenc J (Ei+ J "otal number of re$pondent$9no of opinion$X,OO9(X>) 0I SW!ARE D3(E X Y TDOiCEiE (9 EiV Ihere Oi X Ob$er.ed fre6uen%& Ei X E3pe%ted fre6uen%& "ABLE %al%ulation of ( Opinion Male who $a& &e$ ;emale who $a& &e$ Male who $a& no ;emale who $a& no Ob$er.ed fre6uen%& DOiE =( =< * L E3pe%ted fre6uen%& DEiE =(/> =(/> L/> L/> DOiCEiE C)/> )/> )/> C)/> DOiCEiE( )/(> )/(> )/(> )/(> DOiCEiE(9Ei )/))M )/))M )/)<< )/)<< )/)L*

M N(,i0Ei+-OEiPJ .3.4/ Degree$ of freedomXDrC,ED%C,EX D(C,ED(C,EX, "he table .alue of ( for degree of freedom ,' at >N le.el of $ignifi%an%e i$ </*= ( %omputed .alue X )/)L* So we %an $ee that the table .alue i$ greater than the %al%ulated .alue/ So the null h&pothe$i$ will be a%%epted and the alternati.e h&pothe$i$ will be re-e%ted/

RESEARC' 'DP,T'ESIS2
(u## ' pot%e&i& ('o+2 Ior1for%e di.er$it& doe$ not ha.e an& $ignifi%ant impa%t on inno.ation$ in term$ of organi7ation4$ $trateg& building/ Page 41 of 4/ RELIGARE SE !RI"IES LIMI"ED#

A#ternative ' pot%e&i& ('1+2 Ior1for%e di.er$it& do ha.e $ignifi%ant impa%t on inno.ation$ in term$ of organi7ation4$ $trateg& building/ Leve# o" &igni"icance J>K Tota# number o" re&pondent& J 1.. 0I SW!ARE D3(E X Y TDOiCEiE (9 EiV Ihere Oi X Ob$er.ed fre6uen%& Ei X E3pe%ted fre6uen%& "ABLE %al%ulation of ( M N(,i0Ei+-OEiPJ (<34<L43@:L:3@@L131<L.3==L.3.<L134/L.3.<L.3<<L.3./+ J-.3/< Degree$ of freedomX D,)C,E X O "he table .alue of ( for degree of freedom O' at >N le.el of $ignifi%an%e i$ ,M/O, ( %omputed .alue X ()/*= "hu$ we %an well -u$tif& that the table .alue i$ le$$ than the %al%ulated .alue/ So' the nu## % pot%e&i& *i## be rejected and t%e a#ternative % pot%e&i& *i## be accepted3 B& the help of finding$ 5 interpretation mentioned abo.e' the $tud& re$ult$ %an pro.e that the *or$"orce diver&it do %ave &igni"icant impact on innovation& in term& o" organiIation6& &trateg bui#ding3

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;I(DI(GS
,/ Men are more dominating than women in %la$$/ (/ Iomen tend to be in.ol.ed in their per$onal problem and thi$ i$ refle%ted in their beha.iour/ </ In mo$t of the 6ue$tion$ it i$ being ob$er.ed that null h&pothe$i$ i$ being a%%epted in %ommon' whi%h %an help to -u$tif& that wor1for%e di.er$it& help$ in inno.ation$ of organi7ational $etting/

REC,MME(DATI,(S

,/ Organi7ation $hould %ondu%t training program$ for male and female fa%ultie$ together $o the& %an able to get a friendl& wor1ing en.ironment/

(/ Iomen $hould $eparate their per$onal life from profe$$ional life/

</ Male $hould e3tend their helping hand$ toward$ women whi%h $hould en%ourage them for better -ob/

HUSTI;ICATI,( ;,R C',,SI(G T'IS PARTICULAR DISSERTATI,(

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?ow in pre$ent da&$ in an& organi7ation both male and female emplo&ee$ are wor1ing/ So b& he help of thi$ re$ear%h $tud& we %an ea$il& able to find that when an& inno.ation i$ done in an organi7ation then who %an ea$il& able to go through with thi$ inno.ation pro%e$$/ In man& in$tan%e$' poli%ie$ of e6ualit& and di.er$it& are not the leading prin%iple of the$e initiati.e$' but are gi.en e6ual attention along$ide poli%ie$ de$igned to manage the %reati.it& and inno.ation of emplo&ee$/ 0owe.er' thi$ i$ pre%i$el& the mean$ b& whi%h the main$treaming of e6ualit& and di.er$it& management %an and $hould be a%hie.ed2 b& relea$ing it from the 0R department$ where it wa$ fir$t re%ogni7ed and de.eloping di.er$it& $trategie$ within other department$/ In $o doing' the %hallenge$ of negati.e $tereot&ping' poor %ommuni%ation' and poor integration are o.er%ome through the de.elopment of $pe%ifi% organi7ational pro%e$$ aimed at pro.iding all emplo&ee$ a $pa%e within whi%h their idea$ %an be $hared/ En%ulturation + the $uppre$$ion of di.er$it& in order to %reate a homogenou$ %ompan& %ulture + $pe%ifi%all& ha$ no pla%e there/ Indeed' at both BAS; and "MB' inno.ation initiati.e$ a%ti.el& $ought to in%rea$e a heterogeneou$ %ompan& %ulture through en%ouraging their emplo&ee$ to ri$1 thin1ing differentl& and $pea1ing out

C,(CLUSI,(
"he $tud& %an be %on%luded b& $tating that the training and de.elopment $e$$ion$ $hould be gi.en due attention b& %ondu%t training program$ for male and female fa%ultie$ together $o that he$itation %an be remo.ed and the& %an wor1 in friendl& en.ironment/ And the gender ba$ed he$itation$ Dwhile wor1ing togetherE' among mo$t of the male and female fa%ultie$ %an be remo.ed/ ;urther $ome %on%lu$ion$ are women $hould 1eep their per$onal and profe$$ional life $eparate $o that both %an be balan%ed/ Male $hould e3tend their helping hand$ toward$ women $o that the& will feel moti.ated/ Sin%e the $tud& %annot be %on$trained within the limit of finding$' thu$ the out%ome$ of thi$ $tud& %an be e3tended ahead in the hand$ of future re$ear%her$ with the $ame intere$t $o that $ome more out%ome$ %an al$o be introdu%ed to di$%ourage the other di.er$e gender barrier$/

RE;ERE(CES2

A/ BOO@S2 Page 4< of 4/ RELIGARE SE !RI"IES LIMI"ED#

,/ Adler' ?/F/ D,OOLE' International Dimensions of Organizational Beha ior ' SouthCIe$tern ollege Publi$hing' in%innati' O0' (/ 0uman re$our%e management' B S P RAO' Se%ond Edition' Publi$herCEA EL BOO@S' ())* </ 0uman re$our%e management' L M PRASAD' Se%ond Edition' Publi$herCSultan hand 5 Son$' ())> =/ Per$onnel90uman re$our%e management' DABID A DE E?HO 5 S"I;E? P ROBBI?S' "hird Edition' Publi$herC A$o1e 1/ Gho$h' ())L M/ 0uman re$our%e de.elopment and management' A/M/ Shei1h' Publi$herC S/ hand 5 ompan& L"D L/ 0uman re$our%e de.elopment' " B Rao' Publi$herC SAGE Publi%ation$' ())M */ Per$onnel and 0uman re$our%e management' A/M/ Sharma' ;ifth Edition' Publi$herC 0imala&a Publi$hing 0ou$e' ())> O/ R/ M/ Ientling' ?/ PalmaCRi.a$ ,)/ B& Ientling' Ro$e Mar&8 PalmaCRi.a$' ?ilda

B/ RESEAR 0 AR"I LES2 1. De !"!"# the $ttr!%ute& '"( )r*+e&&e& th't E"h'"+e the E e+t!,e"e&& * -*r. *r+e D!,er&!t/ I"!t!'t!,e& !" 0"*12e(#e I"te"&!,e 3!r4& M*(u5e N. $.!"*2' D',!( $. Th*4'& 620087 (/ El&' R/ F/ 5 "homa$' D/ A/ ()),/ Gender di.er$it& at wor12 "he effe%t$ of di.er$it& per$pe%ti.e$ on wor1 group pro%e$$e$ and out%ome$/ Admini$trati.e S%ien%e Wuarterl&' =MD(E2 ((OC(L< </ Ibarra' 0/ ,OO</ Per$onal networ1$ of women and minoritie$ in management2 A %on%eptual framewor1/ A%adem& of Management Re.iew' ,*2 >MC*L/ =/ Bra$$' D/ F/ ,O*>/ MenG$ and womenG$ networ1$2 A $tud& of intera%tion pattern$ and influen%e in an organi7ation/ A%adem& of Management Fournal' (*2 >,*C><O / IEBSI"ES2 ,/ http299www/hb$/edu9re$ear%h9pdf9)LC),O/pdf (/ http299www/%hrmglobal/%om9arti%le$9,**9,9ManagingCDi.er$it&CinCOrgani7ationCCPartC II/html Page 4> of 4/ RELIGARE SE !RI"IES LIMI"ED#

</ http299www/ilr/%ornell/edu9librar&9re$ear%h9$ub-e%tGuide$9wor1pla%eDi.er$it&/html =/ http299www/nap/edu9openboo1/phpJre%ordZidX,,MLO5pageX,(( >/ http299www/te%hnolog&e.aluation/%om9$ear%h9for9managingCwor1for%eCdi.er$it&/html M/ http299www/the$u$tainablewor1for%e/org9inde3/php9re$ear%hCoutput$9arti%le$J$tartXM)

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A((ECURES

BUESTI,((AIRE2
(AME0 GE(DER0 13 Doe& t%e organiIation be#ieve t%ere are advantage& in recruiting a gender diver&e &ta""F a3DES Page 44 of 4/ RELIGARE SE !RI"IES LIMI"ED#

b3(, -3 Doe& organiIation in&ure t%at bot% *omen and men are in intervie* pane#F a3DES b3(, :3 Doe& organiIation en&ure t%at app#ication& "rom "ema#e candidate& are active# mobi#iIedF a3 De& b3 (o c3 Sometime& <3 I& organiIation %e#d accountab#e "or generating gender diver&e poo# o" %ig% Eua#it candidateF a3 De& b3 (o >3 Are *omen repre&ented in t%e %ead o" t%e departmentF a3 De& b3 (o =3 Doe& t%e organiIation re*ard peop#e *%o ta$e initiative "or cu#tura# program in t%e organiIationF a3 De& b3 (o 43 Doe& t%e organiIation %ave an adeEuate maternit #eave "or birt% o" a c%i#dF a3 De& b3 (o /3 Doe& t%e organiIation & &tematica## monitor attrition rate& o" *omen and menF a3 De& b3 (o @3 Doe& t%e organiIation give *omen eEuiva#ent re&pect! #egitimac and aut%orit a& t%e do "or ma#e &ta"" in comparab#e po&itionF a3 De& b3 (o 1.3 Doe& t%e organiIation ta$e "eedbac$ "rom bot% *omen and men on t%e impact o" po#ic deci&ion and action&F a3 De& b3 (o

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