A world of intelligent investing

A world of intelligent investing

Ever since its inception in 1993, Networth Stock Broking Limited (NSBL) has sought to provide
premium

financial services and information, so that the power of investment is vested with the client. We
equip those who

invest with us to make intelligent investment decisions, providing them with the flexibility to
either tap into our

extensive knowledge and expertise, or make their own decisions. NSBL made its debut into the
financial world

by servicing Institutional clients, and proved its high scalability of operations by growing
exponentially over a

short period of time. Now, powered by a top-notch research team and a network of experts, we
provide an array

of retail broking services across the globe - spanning India, Middle East, Europe and America.
Currently, we are

a Depository participant at Central Depository Services India (CDSL) and aim to become one at
National

Securities Depository (NSDL) by the end of this quarter. Our strong support, technology-driven
operations and

business units of research, distribution and advisory coalesce to provide you with a one-stop
solution to cater to

all your broking and investment needs. Our customers have been participating in the booming
commodities

markets with our membership at the Multi Commodity Exchange of India (MCX) and National
Commodity &
Derivatives Exchange (NCDEX) through Networth Stock.Com Ltd.

NSBL is a member of the National Stock Exchange of India Ltd (NSE) and the Bombay Stock
Exchange Ltd

(BSE) on the Capital Market and Derivatives (Futures & Options) segment. It is also a listed
company at

the BSE.

Corporate overview:

Networth has been successfully providing premium financial services and information for more
than a decade. Our aim has consistently been to empower investors to take charge of their
financial future & help them grow their Networth.

Networth has always endeavored to make a difference in the financial services space. It
constantly focuses on scaling and upgrading the technology infrastructure so as to provide the
best services to the investors. We have a presence of over 300 centres across India.

We are..

 Managed by a talented team of around 1000+ professionals.

 Serving nearly 100,000 clients across the country.
 ISO 9001:2000 Certified Software Division.
 Winner of CNBC-TV18’s Financial Advisor Awards 2008 for Best Regional Level
Financial Advisor.
 Proclaimed amongst the most read research analyst (Team Networth) by Thomson
Reuters consistently over a period of time.
 A Charter member of Financial Planning Standards Board of India [FPSB].
 Alliance partners with PNB for online trading.
 Corporate Agents for MetLife India Insurance Co. Ltd.

Products and services portfolio:

• Retail and institutional broking

• Research for institutional and retail clients

• Distribution of financial products

 • Corporate finance

• Net trading

• Depository services

• Commodities Broking

Infrastructure

• A corporate office and 3 divisional offices in CBD of Mumbai which houses state-of-the-
art dealing

room, research wing & management and back offices.

• All of 300 branches and franchisees are fully wired and connected to hub at Corporate
office at Mumbai
.
Add on branches also will be wired and connected to central hub

• Web enabled connectivity and software in place for net trading.

• 60 operative ID’s for dealing room

• State of the Art accounting and billing system, on line risk management system in place
with 100%

redundancy back up.

• In house technology back up team to ensure un-interrupted connectivity.

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OUR GROUP COMPANIES

Networth Stock Broking Ltd. [NSBL]

NSBL is a member of the National Stock Exchange of India Ltd (NSE) and the Bombay Stock
Exchange Ltd (BSE) in the Capital Market and Derivatives (Futures & Options) segment. NSBL
has also acquired membership of the currency derivatives segment with NSE, BSE & MCX-
SX. It is Depository participants with Central Depository Services India (CDSL) and National
Securities Depository (India) Limited (NSDL). With a client base of over 1L loyal customers,
NSBL is spread across the country though its over 300 branches. NSBL is listed on the BSE
since 1994.
 
Networth Wealth Solutions Ltd. [NWSL] 
NWSL is into the business of delivery of Financial Planning & Advice. It’s vision is to ‘Advice
& Execute money related solutions to/for our customers in the most Convenient & Consolidated
manner, while making sure that their experience with us is always pleasant & memorable
resulting in positive advocacy’. The product & Services include Financial Planning, Life
Insurance, On-line Trading Account, Mutual Funds, Debentures/Bonds, General Insurance,
Loans and Depository Services.
 
Networth Commodities & Investments Limited [NCIL]
NCIL is the commodities arm of NSBL. It is a member at the Multi Commodity Exchange of
India (MCX), National Commodity & Derivatives Exchange (NCDEX) and ICEX & is backed
by solid research & analytics in Commodities.
 
Networth Soft Tech Ltd. [NSL]
NSL is an ISO 9001:2000 Certified Company. It is into Application Development &
maintenance. Building & Implementation of packaged software across various functions within
the Financial Services Industry is at its core. It also provides data center services which include
hosting of websites, applications & related services. It combines a unique delivery model infused
by a distinct culture of customer satisfaction.
 
Ravisha Financial Services Pvt. Ltd. [RFSL]
RFSL is a RBI registered NBFC engaged in financing, primarily it provides loan against
securities.

OBJECTIVES OF STUDY

1. To study various trends in derivative market.

2. Comparison of the profits/losses in cash market and derivative market.
3. To find out profit/losses position of the option writer and option holder.
4. To study in detail the role of the derivatives in Indian financial market.
5. To find out the how to minimize or hedge the risk by using strategies.
 SCOPE OF THE STUDY
The study is limited to “Derivatives with special references to futures and options in the
Indian context & the NIFTY ’50 has been taken as a representative sample for the study. The
study can’t be said as totally perfect. Any alteration may occur. The study has only made humble
attempt at evaluating derivatives only in India markets. The study is not based on the
international perspective of derivatives which exists in DOW JONES and NASDAQ.

RESEARCH METHODOLOGY

The following steps are involved in the study

Selection of scrip: Selection of scrip is done on a random basis and the scrip selected is NIFTY
’50. The lot is of 50 size, profitability position of futures, buyers and sellers & also the option
holders and option writers is studied.

Data Collection: The data of the NIFTY ’50 has been collected from the news paper & internet.
The data consist of six months contract & period of data collection is from MAY 2010 TO
OCTOBER 2010. Contracts. Sources of data www.nseindia.com

Analysis:
MARGINAL OF SAFETY HAS TO BE FINDING TO CALCULATE MINIMUM AND MAXIMUM
RISK ON EACH CONTRACT. And applying couple of strategies how to reduce risk. Here I m not
giving priority to technical analysis, because my study explains real time examples.
The analysis consist of the tabulation of the data assessing the profitability position of the fure
buyers & sellers and also the option holder & the option writer representing the data with graphs
and making interpretation using data. And apply some strategies how to minimize the risk with
live examples.