A

Project Study Report

On
KAYNET CAPITAL

“DEALING IN CAPITAL MARKET”

Submitted in the partial fulfillment for the

Award of degree of
Master Of Business Administration

Submitted By:- Submitted To:-

Meena Kabra Mrs Mini Amit
(Finance )MBA part 2 (FacultyMBA Dept)

2009-2011

ARYA COLLEGE OF ENGG. & RESEARCH CENTRE , KUKAS,

JAIPUR
 Preface

As part of the course curriculum of the post graduate degree of Master in Business
Administration, the students have undergone practical training for 45 days.

The underlying object of the training is to provide the student with practical aspect of the
organizations working in an environment. Such type training helps the student to work
on real industrial environment and to gain practical knowledge and build confidence.

As the part of this curriculum, I took my training in Kaynet capital. The training covered
all the aspect of learning about unit link investment plan.

As we know that declining rate in traditional investments have created urge among the
people for new avenues of investments, unit link investment plan prove to be one such
investment which provide a combination of good return with all tax benefits that in turn
help people to get maximum returns and benefits on their savings. Unit link is the
combination of mutual funds

Practical training in any organization is must for every management student as it is

better of learning concepts and helps the student to instrument those concept in the real
corporate world.

Meena Kabra
Acknowledgement

I wish to express my sincere gratitude to all those persons who extended their help ,
guidance and suggestions without which it would not have been possible to complete
the project report.

I am deeply indebted to my guide Mr.Devendra Singh Malviya for his valuable and
enlightened guidance and who encouraged me in completion of my project.

I am really thankful to Mr.Navneet sir( regiona headl), who has been the chief facilitator
of this project and could enhance my knowledge in the field of capital market . I am
very much thankful to Mr.Avichal Gupta (Academics) for his guidance.

Meena Kabra
EXECUTIVE SUMMARY

This internship report consists of the overall experience of working as a part at KAY NET

CAPITAL LIMITED. This experience helped me understand the basic functioning of the

Broking House where I was inducted.

My Internship consisted of the On Job Training as A Marketing Executive. The best learning

experience was that I started from the very basics of getting to that position and not from the

position itself. This helped me get useful insight and understanding of various financial products,

the market details about them and the benefits provided by them to the customers. Emphasis was

given in analysis of the investor behavior of the clients. Another interesting fact was that all

these products were suggested to clients not just based on their market performance and returns,

but on the client’s financial condition as well as their risk taking capacity.

Training sessions were held to give me insights about the various products that KAY NET

CAPITAL LIMITED deals in like: Demat accounts and Insurance. Presentations on the same

after self study and analysis were a part of this internship session.

I provided advice and suggestions to the investors for online trading and which may prove

prudent to them.
 Contents

S.No.. Detail Page No..

1 Acknowledgement 3
2 Preface 4
3 Industry Profile 5
4 Company profile 8
4.1 About Investment 11
5 About Project 15
6 Mutual Funds 17
6.1 Insurance 23
6.2 Commodity 28
6.3 Indian stock market overview 48
6.4 Sensex and Nifty 54
6.5 Margin Trading 55
6.6 on-line Trading 58
6.7 Corporate offers 59
6.8 Competitive Analysis 60
7 Research Methodology 61
8 Market Analysis
9 Swot Analysis 66
10 Limitations 69
11 Conclusion 70
12 Suggestions 71
13 Questionnaires 72
14 Glossary 73
15 Bibliography 80
 Industy Profle
Industry profile means the industry in which we invested in our money it is the industry
of the Indian stock market is tremendous development and the new trends introduce in
this. There are the many industry in which we can invest our money and get the return.
and there is the many advantages and disadvantages of them that is the automobile
sector, real estate sector , insurance sector, textile sector , and the telecom sector so
we analysis the industry in which we can invested in our money so the share market is
evaluate the industry , the investors invested before the me analysis of the three
analysis.

 Economy Analysis: Economy analysis is the analysis of the basic rules and
regulation of the particular country and the lows which are announced by the
central reserve bank of particular country.

 Industry Analysis : The industry analysis consists of the particular feature o

industry there are the many industry are bank sector, automobile sectors,
insurance sectors, and the bank sectors So we evaluate the industry analysis of
the past sales , current growth and the market patters and price of share.

 Company Analysis: Company analysis is the last stage of the investment

process company analysis means the selection of th particular sectors and there
are the different sector and each sectors consists of the many company
Stock market an Introduction
 The origin of the stock market relates back to the year 1494, when the
Amsterdam Stock Exchange was set up.
 In India it dates back to the 18th century, an era when the East India Company
was a dominant Institution in India.
 The stock market of India set up in 1875 at that time there were 22 brokers who
met and established the Bombay stock exchange.
 "The Bombay Stock Exchange" (BSE) was founded in the year 1875.
 "The Ahmadabad Shares and Stock Association" was formed in the year 1894.
 The Calcutta Stock Exchange Association was formed by about 150 brokers on
15th June 1908.
 In the year 1920, one stock exchange was established in Northern India and one
in Madras called "The Madras Stock Exchange". "The Madras Stock Exchange
Association Pvt. Ltd." was established in the year 1941.
 On 29th April 1959, it was reorganized as a company limited by guarantee under
the name and style of "Madras Stock Exchange" (MSE).
 The Lahore Stock Exchange was formed in the year 1934. However in the year
1936 after the Punjab Stock Exchange Ltd. came into existence, the Lahore
Stock Exchange merged with it.
 The Hyderabad Stock Exchange Ltd. was incorporated in the year 1944.

 Two stock exchanges which came into being in Delhi by the name "The Delhi
Stock & Share Brokers Association Ltd." and "The Delhi Stocks & Shares
 Exchange Association Ltd." were amalgamated into "The Delhi Stock Exchange
Association Ltd." in the year 1947.
 Subsequently the Bangalore Stock Exchange was registered in the year 1957
and recognized in the year 1963. The third stock exchange in the state of Gujarat
the "Vadodara Stock Exchange Ltd." was incorporated in 1990.
 The Over the Counter Exchange of India (OTCEI) broadly based on the lines of
NASDAQ (National Association of Securities Dealers Automated Quotation) of
the USA was promoted and approved on August 1989. The National Stock
Exchange of India Ltd. was incorporated in November 1992.

STOCK EXCHANGE IN INDIA

There are 23 stock exchanges in India there are mainly two stock exchange Bombay
stock exchanges [BSE] and national stock exchange [NSE] I include all the stock
exchange situated in India.

• 1.Bombay stock exchange

• 2.National stock exchange(Mumbai)
• 3.Banglore stock exchange
• 4.Utter Pradesh stock exchange(Kanpur)
• 5.Magadh stock exchange(Patna)
• 6.Ahmedabad stock exchange
• 7.Vadodara stock exchange(Baroda)
 • 8.Bhubaneswar stock exchange
• 9.Calcutta stock exchange(Kolkata)
• 10.Madras stock exchange
• 11.Cochin stock exchange
• 12.coimbatore stock exchange
• 13.Gauhati stock exchange
• 14.Hydrabad stock exchange
• 15.Madhya Pradesh stock exchange(Indore)
• 16.Jaipur stock exchange
• 17.Ludhina stock exchange
• 18.Mangalore stock exchange
• 19.Pune stock exchange
20. Saurashtra Kutch stock exchange

STOCK MARKET MEANING

Stock exchange is that place where trading of shares is done in terms of sale and
purchase. A stock market or equity market is a public market (a loose network of
economic transactions not a physical facility or discrete entity) for the trading of
company stock and derivatives at an agreed price; these are securities listed on a stock
exchange as well as those only traded privately.

BENEFITS OF STOCK EXCHANGE

From the view of community

 It assists the economies development by providing a body of interested
investors.
 It uploads the position of superior enterprises and assist them in raising further
funds.
 It encourages capital formation
 Government can undertake projects of national importance and social value
raising funds through the sale of its securities on the stock exchange.
  It is the stock exchanges that central bank of a country can control credit by
undertaking open market operations (purchase and sale of securities)
FROM THE COMPANY POINT OF VIEW
 A company whose shares quoted on stock exchange they enjoy better reputation
and credit.
 The market for the shares of such a company is naturally widened.
 The market price of securities is likely to be higher in relation to its earnings,
dividends and property values. This raises the bargaining power of the company
in the event of a takeover, merger or amalgamation

 FROM THE INVESTORS POINT OF VIEW

 Liquidity of the investment is increased
 The securities dealt on a stock exchange are good collateral security for loans.
 The stock exchange safeguards interests of investors through strict enforcement
of rules and regulations.
 The present net worth of investments can be easily known by the daily
quotations.
 His risk is considerably less when he holds or purchases listed securities.

 ROLE PLAYER IN STOCK MARKET

 EXTERNAL

 SHAREHOLDER

 DEBENTURE HOLDER

 SHAREHOLDER

 Shareholders are divided into two parts

 1.Preference shareholder: Preference shareholder are those which have
preferential right to the payment of dividend during the life time of the company,
and a preferential right to the return of the capital when the company is wound
up.
 CHARACTERISTICS OF PREF.SHAREHOLDER

 The dividend on them is fixed by the articles of the company.

 They get their fixed rate of dividend before any dividend is distributed among the
other class of shareholders.
 At the time of winding up of the company, the preference shareholder must be
paid back their capital before anything is paid to the ordinary shareholders.

 KINDS OF PREF.SHAREHOLDER

 Cumulative shareholder: These shares are entitled to fixed dividends whether

there are profits or loss. If profits are not sufficient to pay in a particular year then
that will pay on next year.
 Non cumulative pref.share: These shares cannot claim arrears of dividends of
any year (if not paid due to insufficiency of profits) out of profits of subsequent
year.
 Participating pref. Shares: These shares receives a fixed rate of dividend in
priority to ordinary shares and further, the right to participate in balance of profits
in an agreed proportion together with ordinary shares.
 Redeemable pref.share: These are shares which can be purchased back by the
company. The company reserves its rights to call back or purchased these
shares at any time.

 EQUITY SHARES

 All shares which are not preference shares are equity shares. These shares do
not have a fixed rate of dividend, they are always irredeemable and their holders
have normal voting rights.
 They are also the owners of the company.
 They take dividend
INTERNAL PLAYERS

 Broker: He is a commission agent who transacts business in securities on behalf

of non-members. They may have number of sub-brokers to canvass and secure
business for them.
 Jobber: He is an independent dealer securities. He purchase and sells securities
in his own name. He is not allowed to deal with non-members directly. He works
for profit.
 Non-members: The following categories of non members are also permitted to
enter trading hall and transact business on the behalf of members.
 Authorized clerks: They are the assistant or agents. They buy or sell on the
behalf of employers. They cannot transact business on their own account.
 Remisers: They are the sub-brokers. He is also called the half commission men.
 Company Profile

KAYNET CAPITAL
COMPANY PROFILE
 Kaynet was established in 1994 with a view to provide diversified investment
solutions to our customers

 . With a blend of a dedicated team, accurate research results and high customer
focus, we are all set to expand.
To introduce innovative investment solutions based on the demands of our With
us you get a diverse range of investment options and we continuously strive
customers.

 Our current businesses include securities and commodity broking and

management.
We are members of National Stock Exchange (NSE), Bombay Stock Exchange
(BSE), Multi Commodity Exchange of India Limited (MCX), National Commodity
& Derivatives Exchange (NCDEX), Currency Exchange and Central Depository
Services
Our services cater to a wide range of clients like corporations, institutional
investors, retail clients and high net-worth individuals.

Mission

To be ahead of the market always.

Vision
To become a preferred and cordial partner for retail and institutional investors by
offering comprehensive and research-based financial solutions.

Core Values

 Trust comes before all transactions.

 Both protection and growth are of paramount importance.
 Knowledge will keep us as well as our clients ahead.
 Our management comprises a diverse talent pool that brings together rich
experience from across the industry.

 Why Kaynet?
 You need to have right expert for Investing in capital market. Kaynet provides
guidance in the exciting world of stock market with suitable trading solutions and
value-added tools and services to enhance your investment.
 Research Based approach
 Wide range of daily, weekly and special Research reports
 Expert Sector Analysts with professional industry experience
 Advisory
 Real-time market information with News updates
 Investment Advisory services
 Dedicated Relationship Managers
 Portfolio Management Services
 Support
 24x7 Web-enabled Back Office
 Centralized Help Desk
 Live Chat support system
  Future & Options segment has emerged as a popular medium for trading in
financial markets. Future contracts are available on Equities, Indices, Currency
and Commodities.

Kaynet with its membership as Trading Member of NSE F&O Segment and BSE
Derivatives Segment, provides you a gateway to the exciting world of derivative market.

Career
We view human resources at one of the most vital assets. It helps us create a reliable
and hard working team which helps us serve our Customers. In return, we provide our
employees with a healthy working environment which helps them grow with us.

Our employees are exposed to the best business practices. Together with healthy
competition, we also imbibe in our employees a sense of solid work and business
ethics.
Good performances are well-rewarded with incentives and promotions.

PRODUCT SPECIFICATIONS:
 We make available to you various investment options to meet your personal
investment and financial planning needs. With a Certified Investment Counselor
to assist you in making your decisions and the convenience of a One-Glance
Account Statement,

 it’s one way to assure that your money works the hardest for you. It’s a One-stop
shop for Direct Equity, Mutual Funds, Govt. of India Securities,

 Debentures and other fixed income investment options. A thorough due-diligence

process vets all investment options before being offered to our customers,
supported by comprehensive research
  & analysis and regular updates on performance and ongoing analysis of
investment options

KAYNET RELATIONSHIP MANAGER:

You are just a call away from your KAYNET Relationship Manager THE TRUSTED
ADVISOR for all your financial needs.
He will be responsible to maximize your returns and provide you with solutions that are
specially customized for you.
He will also advise you on how to make the most of KAYNET services, In short, help
you stretch your business dreams.
As you consolidate your relationship with us, we will present you with special
relationship pricing on the entire range of products, to give you more value for your
money. For any further information or clarifications please feel free to get in touch
with the undersigned.
1) Investment (Delivery)
2) 2) Trading (Speculation)

1) Delivery Margin: 3 times.

In this module, you can buy the shares for the Investment. Or for the Long time Position.
In this module one great facility is there if you will buy today you can sell that delivered
shares next day. But you have to Pay Delivery Brokerage= 0.5%(Per leg). But In- case
you clear your position same day then brokerage will be trading (0.10% Per Leg).

For Example: You deposited margin Rs. 10,000/- (cash) that you will get 20,000/-
investment (Means you can take position till 20, 000/-). And as you will sell those
shares your Margin will be free for the Next Position / Next Souda.
Trading (Intraday): 10 times

In this module you Can get limit for the six time of your deposited Margin fund For
e.g. In Trading you will Deposit Rs. 10,000 Your limit will get Increase 10 times
(10,000*10 = 1,00,000/-) But In trading we Square off the all position at 3:10pm
Whatever share price will be at that time.

ADDITIONAL FACILITIES

 You can transfer your fund from “Investment to Trading” Or “Trading to

Investment”.
 You can see your Contract Note and Bill Online at the End of Day (EOD).
 In Intra-day you can see your all position and you’re pending order also.
 You can see your all history from beginning till date as per Trade/Date/Symbol.
 Third thing you can see your overall DP position on trading engine.
 You can do short sale also over there in Trading A/c.

About Investment

Investment is wisely important part of financial securities one tries to money to

investment early as possible so that money will grow accordingly her life time Choosing
a wise investment often is very Crucial because a balance is require to be maintained
between risk and return involvement . For examples, many people invest in private firms
which very offer very high interests rate but they may vanish after some time loosing his
invested money .

Feature of Investment

 Safety of Principle :Safety of Principle is the of most important feature of the

investment that means we should trying to safe the our investment capital through
positive balance between the Risk and Investment
 Adequate Liquidity and Collateral Value : Adequate Liquidity means the
investment should be liquid form that means the current capital investment in the
liquid assets so that we easily arrange the cash as per our the cash requirement.
 Stability of Income: Stability in income means the stability of income as form of
the return invested in the investment assest By the investors . The income occur in
the regular basis and the time in which generate income is much be very long.
 Capital Growth: Capital Growth means the increase the principle amount of the
capital and the capital appreciate of the income and capital of the investment of the
capital.
 Tax benefit : Tax benefit means the amount invested in the tax benefit security
so that we can save the tax saving. There are several instrument available in the
market so that we can make the save of the tax.
 Purchasing Power Stability : Purchasing power stability means the analysis of
the purchase power of man and increase the purchase power of the infesters so that
the man can investment his capital and money and increase the living of standard.
 Increase the Standard of Living : Increase the Standard of Living means the
increase the purchase power of the investor and earn more return of his invested
amount of the capital which is invested by the investors and so that the purchase
power of the investors his increase and ultimate the increase of the standard of
living.
Risk Associated With Investment

 Business and Financial Risk : Business risk is the type of risk in Business risk
is that portion of the unsystematic risk caused by the operating environment of
the business. Business risk arise from the inability of a firm to maintain its
competitive edge and the growth or stability of t he earning. Variation that occurs
in the operating environment is reflected on the operating income and expected
dividends.
 The variation in the expressed operating income indicated the business risk.

 Interest Rate Risk : interest rate risk is the variation in the single period rates of
return caused by the fluctuations in the market interest interest rate .
o Most commonly interest rate risk affects the price of bonds, debentures
and stock. The fluctuations in the interest rates are caused by the
changed by the changes in the government monetary policy and the
changes that occur in the interest rates of treasury bills and the
governmenent bonds.

 Social and Regulatory Risk : Social and regulatory risk is the risk occur in the
changes of the changes in the social environment of the public environment as
well as the regulatory policy changes and the commitment in the regulatory policy
means the which policy by the Indian market regulate by the
 various policy and the plans which announced by the security and exchange
board of India and the government and the Reserve bank of India.
 Purchasing Power Risk. Variations in the returns are caused also by the loss
of purchasing power of currency. Inflation is the reason behind the loss of
purchasing power. The level of inflation proceeds faster than the increase in
capital value. Purchasing power risk is the probable loss in the purchasing power
of the returns to be received.

Topic Undertaken

About Project

KAYNET CAPITAL
KAYNET CAPITAL
Mutual
Equity Insurance
Commodity
funds

 Mutual funds growth and insurance growth depends on share market growth. If
sensex get good position in share market then u gets more profit in mutual funds
and insurance.
 Share market have two types of index:
o First one is Sensex
o Second one is Niffty

SENSEX AND NIFTY

 The Sensex is an "index". What is an index? An index is basically an
indicator. It gives you a general idea about whether most of the stocks have
gone up or most of the stocks have gone down
The Sensex is an indicator of all the major companies of the BSE.
 The Nifty is an indicator of all the major companies of the NSE.Nifty
includes top 50 company of N.S.E.
 The Sensex goes up; it means that the prices of the stocks of most of the
major companies on the BSE have gone up.
 If the Sensex goes down, this tells you that the stock price of most of the
major stocks on the BSE have gone down.
 Just like the Sensex represents the top stocks of the BSE, the Nifty
represents the top stocks of the NSE.

 Besides Sensex and the Nifty there are many other indexes. There is an
index that gives you an idea about whether the mid-cap stocks go up and down.
This is called the “BSE Mid-cap Index”.
 Whether the small-cap stocks go up and down this is called “BSE small-
cap index. And other indexes of BSE like BSE-100, BSE-200, BSE-500, and
BSE IPO are included.
There are many index included in NSE like S&P CNX Nifty,S&P CNX
DEFTY,S&P CNX-500,NIFTY MIDCAP-50,CNX NIFTY JUNIOR, CNX
MIDCAP,CNX IT,CNX 100,BANK NIFTY.
 To show this accurately, the Sensex is calculated taking into
consideration stock prices of 30 different BSE listed companies. It is calculated
using the “free-float market capitalization” method.
 This is a worldwide accepted method as one of the best methods for
calculating a stock market index.
BSE INDEX VALUE
Index Value:
17,349.07 Trade Time:
3:58PM IST
Change:
385.61 (2.17%)
Prev Close 17734.68
Open:
17,503.04
Day's Range: 17,309.47 - 17,526.80

CAUSES OF PRICE FLUCTUATION IN MARKET

 DAMAND AND SUPPLY
 BANK RATE
 SPECULATIVE PRESSURE
 ACTIONS OF UNDERWRITERS AND OTHER FINANCIAL INSTITUTIONS
 CHANGE IN COMPANY’S BOARD OF DIRECTORS
 FINANCIAL POSITION OF THE COMPANY
 TRADE CYCLE
 POLITICAL FACTORS
 SYMPATHETIC FLUCTUATIONS
 OTHER FACTORS:
 EXPECTED MONSOON
 PERSONAL HEALTH OF HEAD OF GOVERNMENT OR CHAIRMAN OF THE
COMPANY
 OIL PRICES IN THE INTERNATIONAL MARKET.
 CHANGES IN EXCHANGE RATE
 BORDER TENSION
 STOCK BROKERS SCAM LIKE HARSHAD MEHTA AND KETHAN PAREKH
  STRIKES AND LOCK-OUT OF THE COMPANY.
 NEW BUDGET PROPOSALS
 LIBERLIZATION AND PRIVATIZATION OF THE COMPANY.

SPECULATION

Definition: it involves the buying, holding, selling, short-term selling of stocks, bonds.
Commodities, currencies, collectibles or any valuable financial instrument to profit from
fluctuations in its price as opposed to buying it for use or for income via method like
dividends or interest.

Kinds of speculation
 Bull Market (Tejiwala): In case of that they purchase the shares at current
prices to sell at a higher price in the near future and make a profit if his
expectations come true. He is also called a long buyer.
 •

 Bear Market (Mandiwala): He sells security in the hope that he will be able to
buy them back at lesser price. It is also called “short selling”.

•
 Lame duck: When a bear has made contracts to sell securities, find it difficult to
meet his commitment due to non-availability of security, they always struggling...
 

 Stag: He is that type of speculator who applies for a large number of shares in a
new issue with the intention of selling them at a premium. He is bullish and very
cautious.

o
BOMBAY STOCK EXCHANGE

Introduction
The Bombay Stock Exchange (BSE) is located in Dalal Street, Mumbai. Established in
1875, BSE is the oldest stock exchange in Asia.
There are around 3,500 companies in the country which are listed and have a
significant trading volume.
As of July 2005, the market capitalization of the BSE is about Rs. 20 trillion (US $466
billion). The BSE `Sensex' is a widely used market index for the BSE. As of 2005, it is
among the 5 biggest stock exchanges in the world in terms of number of transactions
along with the NSE.

India's economic capital and the abode of the candy floss silver screen, the spark called
Mumbai attracts thousands of months towards itself round the year. Though it is the lure
of the Bollywood glamour and the promise of a livelihood that make people run to
Mumbai; the Arabian sea and the Western Ghats topped up with the lip smacking Paw
Bhaji and Vada Paw along with important historical monuments like Gateway of India,
Elephanta caves, Haji Ali mosque, along with the Bombay Stock Exchange, the water
parks and shopping malls, this truly cosmopolitan city offers a heady cocktail of history
and the contemporary. Mumbai is therefore a haven for business, movie and tour buffs
alike.

Location

The Mumbai Stock Exchange is housed in the towering Phiroze Jeejeebhoy Towers,
Dalal Street in downtown Mumbai. The Phiroze Jeejeebhoy towers are located at the
intersection of Bombay Samachar Marg and Hammam Street. The BSE conducts
business from Monday to Friday from 9:45 am to 3:30 pm and remains closed during
the weekend.

History

In the mid 1850s, a group of 22 stockbrokers started business under a banyan tree
opposite the Town Hall, each investing rupee 1. These stockbrokers called themselves
The Native Share and Stockbrokers Association which came to be recognized as the
Bombay Stock Exchange (BSE) in 1875. The BSE is thus the oldest stock exchange in
Asia.
In 1899 The BSE shifted with the inauguration of the Broker's Hall by James M
Maclean. After the First World War, the BSE again shifted- this time to an old building
near Town Hall. The plot where it now stands was acquired in 1928 on which a building
was constructed which became the permanent address of the Bombay Stock Exchange.

TOP 30 COMPANY LISTED COMPANY OF BSE

1. ACC
2. BAJAJ
3. AIRTEL
4. BHEL
5. CIPLA
6. DLF
7. GRASIM
8. GUJRAT AMBUJA
9. HDFC
10. HDFC BANK
11. HERO HONDA
12. HINDALCO
13. HUL
14. ICICI BANK
15. INFOCYS
16. ITC
17. L&T
18. MARUTI
19. NTPC
20. ONGC
21. RANBAXY
22. RELIANCE COMMUNICATION
23. RELIANCE ENERGY
24. RIL
25. SATYAM
26. SBI
27. TCS
28. TATA MOT0RS
29. TATA STEEL
30. WIPRO
 COMMODITY

In addition, investors can gain passive exposure to the commodity markets through a
commodity price index

1.1. INTRODUCTION

 A commodity is a good for which there is demand, but which is supplied without
qualitative differentiation across a market.
 Commodities are often substances that come out of the earth and maintain
roughly a universal price.[1]
 A commodity is fungible, that is, equivalent no matter who produces it. Examples
are petroleum, notebook paper, milk, and copper
 .[2] The price of copper is universal, and fluctuates daily based on global supply
and demand. Stereo systems, on the other hand, have many aspects of product
differentiation, such as the brand, the user interface, the perceived quality etc.
And, the more valuable a stereo is perceived to be, the more it will cost.
 In contrast, one of the characteristics of a commodity good is that its price is
determined as a function of its market as a whole. Well-established physical
commodities have actively traded spot and derivative markets.
 Generally, these are basic resources and agricultural products such as iron ore,
crude oil, coal, ethanol, salt, sugar, coffee beans, soybeans, aluminium, copper,
rice, wheat, gold, silver, palladium, and platinum. Soft commodities are goods
that are grown, while hard commodities are the ones that are extracted through
mining.
 There is another important class of energy commodities which includes
electricity, gas, coal and oil. Electricity has the particular characteristic that it is
 either impossible or uneconomical to store, hence, electricity must be consumed
as soon as it is produced.
 Commoditization occurs as a goods or services market loses differentiation
across its supply base, often by the diffusion of the intellectual capital necessary
to acquire or produce it efficiently. As such, goods that formerly carried premium
margins for market participants have become commodities, such as generic
pharmaceuticals and silicon chi

Commodity trade
 In the original and simplified sense, commodities were things of value, of
uniform quality, that were produced in large quantities by many different
producers; the items from each different producer were considered equivalent.
 On a commodity exchange, it is the underlying standard stated in the contract
that defines the commodity, not any quality inherent in a specific producer's
product.
 Commodities exchanges include:
 Chicago Board of Trade (CBOT)
 Chicago Mercantile Exchange (CME)
 Dalian Commodity Exchange (DCE)
 Euronext.liffe (LIFFE)
 Kansas City Board of Trade (KCBT)
 Kuala Lumpur Futures Exchange (KLSE)
 London Metal Exchange (LME)
 New York Mercantile Exchange (NYMEX)
 National Commodity Exchange Limited (NCEL)
 Multi Commodity Exchange (MCX)
 International Indonesian Forex Change Market (IIFCM)

Markets for trading commodities can be very efficient, particularly if the division into
pools matches demand segments.

These markets will quickly respond to changes in supply and demand to find an
equilibrium price and quantity.
Market capitalization

Market capitalization/capitalization (often market cap) is a measurement of size of a

business enterprise (corporation) equal to the share price times the number of shares
outstanding of a public company. As owning stock represents ownership of the
company, including all its equity, capitalization could represent the public opinion of a
company's net worth and is a determining factor in stock valuation. Likewise, the
capitalization of stock markets or economic regions may be compared to other
economic indicators. The total market capitalization of all publicly traded companies in
the world was US$51.2 trillion in January 2007and rose as high as US$57.5 trillion in
May 2008[2] before dropping below US$50 trillion in August 2008 and slightly above
US$40 trillion in September 2008.

 Categorization of companies by capitalization

 Traditionally, companies are divided into large-cap, mid-cap, and small-cap.
Recently people have added 'micro-cap' and 'nano-cap'. People have rules of
thumb to determine category from market capitalization. These need to be
adjusted over time due to inflation, population change, and overall market
valuation (for example, $1 billion was a large market cap in 1950 but it is not very
large now), and they may be different for different countries. A rule of thumb may
look like
 Mega-cap: Over $200 billion
 Large-cap: $10 billion–$200 billion
 Mid-cap: $2 billion–$10 billion
 Small-cap: $300 million–$2 billion
 Micro-cap: $50 million-$300 million
 Nano-cap: Below $50 million
 Different numbers are used by different indexes; there is no official definition of or
general agreement about the exact cutoffs. They also may be done by
percentiles rather than fixed cutoffs.

 Functions of the Stock Exchange Market

 Although the stock exchange market has multiple functions, its main activities are
two:
 To promote the savings and for them to be canalized towards of carrying through
investment projects that otherwise wouldn’t be possible you need that the
issuing institution of the securities to be admitted for quoting. The negotiations
will be done on the primary market.

 To provide liquidity to the investors. The investor can recuperate the money
invested when needed. For it, he has to go to the stock exchange market to sell
the securities previously acquired. This function of the stock market is done on
the secondary market.
 

NATIONAL STOCK EXCHANGE OF INDIA

In the fast growing Indian financial market, there are 23 stock exchanges trading
securities. The National Stock Exchange of India (NSE) situated in Mumbai - is the
largest and most advanced exchange with 1016 companies listed and 726 trading
members.

The NSE is owned by the group of leading financial institutions such as Indian Bank or
Life Insurance Corporation of India. However, in the totally de-mutualised Exchange, the
ownership as well as the management does not have a right to trade on the Exchange.
Only qualified traders can be involved in the securities. Trading companies pay variable
listing fees based on their corporate capital size.

The National Stock Exchange of India Ltd. provides its clients with a single, fully
electronic trading platform that is operated through a VSAT network. Unlike most world
exchanges, the NSE uses the satellite communication system that connects traders
from 345 Indian cities. The advanced technologies enable up to 6 million trades to be
operated daily on the NSE trading platform.

NSE MAJOR SAGEMENT IN CAPITAL MARKET

Currently, NSE has the following major segments of the capital market:

 Equity
 Futures and Options
  Retail Debt Market
 Wholesale Debt Market
 Currency futures

Derivative

Derivatives are financial contracts whose value/price is dependent on the behavior ofthe
price of one or more basic underlying asset (often simply known as underlying).These
contracts are legally binding agreements, made on trading screen of stock exchange, to
buy or sell an asset in future. The asset can be share, index, interest rate, bond ,ru
dollar exchange rate ,sugar , crude oil, soya been, coffee etc.

Everybody wants to know about them, everybody wants to talk about them. Derivatives
however remain a type of financial instrument that few of us understand and fewer still
fully appreciate, although many of us have invested indirectly in derivatives by
purchasing mutual funds or participating in a pension plan whose underlying assets
include derivative products

 A simple example of derivative is curd, which is derivative of milk. The price of

curd depends upon price of milk which in turn depends upon the demand and
supply of milk.
 Section 2(aa) of Securities Contract (Regulation) Act 1956 defines Derivative as:
 "Derivative" includes -
 “a security derived from a debt instrument, share, loan whether secured or
unsecured, risk instrument or contract for differences or any other form of
security;

 a contract which derives its value from the prices, or index or prices, of
underlying securities ”.

 A working definition of derivative which will help to lay foundation.

 “A derivative can be defined as a financial instrument whose value depends on
(or derives from) the values of other, more basic underlying variables.”
 ---John C. Hull

 Derivatives are compared to insurance. Just as you pay an insurance company a

premium in order to obtain some protection against a specific event, there are
derivative products that have a payoff contingent upon the occurrence of some
event for which you must pay a premium in advance.
 Example

 Suppose you have a home of Rs. 50, 00,000. You insure this house for premium
of Rs 15000 (It is a very risky house!) Now you think about policy (ignoring the
house) as an investment.
 Suppose the house is fine after 1 year. You have lost the premium of Rs 15000.

 Suppose your house is fully damaged and broken in one year . You receive Rs
50,00,0000 on just paying premium of Rs 15,000.If you have bought insurance of
any sort you have bought an option. Option is one type of a derivative.

 Difference in share and Derivative

 The difference is that while shares are assets, derivatives are usually contracts
(the major exception to this are warrants and convertible bonds, which are similar
to shares in that they are assets).
 We can define financial assets (e.g. shares, bonds) as: claims on another person
or corporation; they will usually be fairly standardised and governed by the
property or securities laws in an appropriate country.
 On the other hand, a contract is merely: an agreement between two parties,
where the contract details may not be standardised.
 Due to their great flexibility, many different types of investors use derivatives. A
good toolbox of derivatives allows the modern investor the full range of
investment strategy: speculation, hedging, arbitrage and all combinations thereof.
 There are two basic types of options-call and put.

 A call option gives an investor right to buy underlying item during specified period
of time at an agreed upon price while put option confers the right to sell it.

 Before going into Call and Put Options it is necessary to understand

 American options can be exercised at any time between the date of purchase
and the expiration date. Most exchange-traded options are of this type.

 European options are different from American options in that they can only be
exercised at the end of their lives.
 The options on the Nifty and Sensex are European style options--meaning that
the buyer of these options can exercise his options only on the expiry day.
 He cannot exercise them before the expiry of the contracts as in case with
options on stocks. As such the buyer of index options needs to square up his
positions to get out of the market.
 In India all stock options are American style options and index options are
European style options.
 The significant difference between a future and an option is that the option
provides the contracting parties only an option, not an obligation, to buy or sell a
financial instrument or security at a pre-fixed price, called the strike price.
Obviously, the option buyer will exercise the option only when he is in the
money, that is, he gains by exercising the option.
 He cannot exercise them before the expiry of the contracts as in case with
options on stocks. As such the buyer of index options needs to square up his
positions to get out of the market.
 In India all stock options are American style options and index options are
European style options.
 The significant difference between a future and an option is that the option
provides the contracting parties only an option, not an obligation, to buy or sell a
financial instrument or security at a pre-fixed price, called the strike price.
Obviously, the option buyer will exercise the option only when he is in the
money, that is, he gains by exercising the option.

 Call Option
 Put Option

 Call Option

 The option that gives the buyer the right to buy is called a call option.
 A call option grants the holders of the contract the right, but not the obligation, to
purchase a good from the writer of the option in consideration for the payment of
cash (the option premium).

 Example: Suppose you have bought a call option of 2,000 shares of Hindustan Lever

Ltd (HLL) at a strike price of Rs250 per share. This option gives you the right to buy

2,000 shares of HLL at Rs250 per share on or before March 28, 2006. The seller of this

call option who has given you the right to buy from him is under the obligation to sell
 2,000 shares of HLL at Rs250 per share on or before specified date say March 28, 2004

whenever asked.

 Put Option

 The option that gives the buyer the right to sell is called a put option.

 A put option grants the holder the right, but not the obligation, to sell the underlying good to

the option writer.

Suppose you bought a put option of 2,000 shares of HLL at a strike price of Rs250 per share.

This option gives its buyer the right to sell 2,000 shares of HLL at Rs250 per share on or before

specified date say March 28, 2006.

The seller of this put option who has given you the right to sell to him is under obligation to buy 2,000

shares of HLL at Rs250 per share on or before March 28, 2006 whenever asked.

• American options can be exercised at any time between the date of purchase and the

expiration date. Most exchange-traded options are of this type.

• European options are different from American options in that they can only be exercised at

the end of their lives.

The options on the Nifty and Sensex are European style options--meaning that the buyer of these

options can exercise his options only on the expiry day. He cannot exercise them before the expiry of

the contracts as in case with options on stocks. As such the buyer of index options needs to square

up his positions to get out of the market.

Conclusion

Indian derivatives market has been rapidly evolving in terms of variety and
sophistication of instruments, range of market participants as well as volume of
turnover.
Adequate measures are also being put in place to try and ensure that adverse effects
from excessive leverage in derivative market do not in any way rupture normal financial
market transactions.

Market participants generally view derivatives as useful products that have allowed
businesses to become more competitive, investors to achieve superior returns, and
governments to cut financing costs by managing financial risks in ways they previously
could not.

Thus to conclude
By far the most significant event in finance during the past decade has been the
extraordinary development and expansion of financial derivatives. These instruments
enhance the ability to differentiate risk and allocate it to those investors most able and
willing to take it - a process that has undoubtedly improved national productivity growth
and standards of living.'

Working of the stock Market

A person desirous of buying/selling shares in the market has to first place his order with
a broker. When the buy order of the shares is communicated to the broker he routes the
order through his system to the exchange. The order stays in the queue exchange’s
systems and gets executed when the order logs on to the system within buy limit that
has been specified. The shares purchased will be sent to the purchase by the broker
either in physical or demat format.

Rolling Settlement Cycle

In a rolling settlement, each trading day is considered as a trading period and trades
executed during the day are settled based on the net obligations for the day. At NSE
and BSE, trades in rolling settlement are settled on a T+2 basis i.e. on the 2nd working
day. Typically trades taking place on the Monday are settled on the Wednesday,
Tuesday’s trades settled on Thursday and so on.
Primary Markets

Securities available for the first time are offered through the primary securities markets.
The issuer may be a brand-new company or one that has been in business for many,
many years, like that of MARUTI. The securities offered may be a new type for the
issuer or additional amounts of a security used frequently in past. The key is that these
securities absorb new funds for the coffers of the issuer.
Secondary Markets

Once investors have purchased new issues, they change hands in the secondary
markets. There are actually two broad segments of the secondary markets the
organized exchanges and the over-the-customer (OTC) market. The primary middlemen
in the secondary market are brokers and dealers. Broker act as an agent while dealer
as a principal in a transaction.
Organized stages are physical market place where the agent of buyers and sellers
operate through the auction process.

Depository

The organization responsible to maintain investor’s securities in the electronic from is

called the depository. In other words, a depository can therefore be conceived of as a
“Bank” for securities. In India there are two such organizations viz. NSDL and
CDSL.The depository concept is similar to the banking system with the expectation that
bank handle funds whereas a depository handles securities of the investors. An investor
wishing to utilize the services offered by a depository has to open an account with the
depository through a depository participant. Depository participant: the market
intermediaries through whom the depository services can be availed by the investors
are called a Depository Participant (DP).

Indian online share trading

Realizing there is untapped market of investors who want to be able to execute their
own trades when it suits them, brokers have taken their trading rooms to the Internet
known as online brokers, they allow you to buy and sell shares via Internet. There are 2
types of online trading service:

iscount brokers

Discount online brokers allow you to trade via Internet at reduced rates. Some provide
quality research, other don’t.

Full service online

Full service online brokerage is linked to existing brokerages. These brokers allow their
clients to place online orders with the option of talking/ chatting to brokers if advice is
needed. Brokerage rates here are higher. 5Paisa.com, ICICIDirect.com, IndiaBulls.com,
Sharekhan.com, Geojit securities.com, HDFCsec.com, Tatatdw.com, Kotakstreet.com
are some of the online broking sites in India.

Factors investors keep in mind while selecting online brokers in India

Brokerage cost

It is important to weigh up the subscription and trading costs charged by an online

broker against benefits offered by the site. All online brokers display their charges on
their sites. Some make sure you find the charges easily, while with others you will have
to search a bit.
Security

Please make sure site has 128-bit encryption to ensure safety of transaction online. You
normally get a secured Login id and password. It is always advisable to frequently
change trading password. Ideally online trading site should be fully integrated. The
greater the backward integration, the better it is for the customer. Ideally broking
account, Demat account and bank account should be linked electronically.

Rate refresh

Rate refresh has to be real-time with no time lag. The speed and reliability comes with
huge investment in technology. It is always advisable to check rates of online broking
sites with BSE/ NSE terminal rates.

Speed of execution

System has to be fast and reliable that doe’s just one job- executes your trades. The
last thing you need is a site that is heavily congested with the users who are
downloading heavy jpeg graphs or pulling the latest story why market is moving. The
site should be one click wonder where squaring off all your positions or canceling all
your pending orders takes one click and a confirmation of action.

Trading Exposure

For trading, all sites provide 4 times buy and sell limit against margin money put in by
customer. For delivery of shares, buying limit is equal to margin money put in by
customer. Couple of sites also provides margin funding for buying of shares.

Free trial period

Site should allow users free trial period to familiarize yourself with system before you
decide to become trading member of the site.

Intraday chart/ historical chart

The site should provide intraday chart tick-by-tick time and price data / historical chart
for technical analysis by investors of particular scrip. Lot of people trade based on
charting packages.

Before you can trade, you need to open an account and register as a trader as with
online broking site. This involves filling up trading account form, Demat account form
and for faster transfer of money- Internet enabled bank account. Please read terms and
condition of each site before commencing to deal with them. As per SEBI rule, Photo id
proof and current address proof is a must for opening trading account.

Online share dealing on the Internet is now a way of life for thousands of investors. 80%
of South Korea and 30%-40% US trade are executed online. If you want to deal in
shares, thereto deal in shares, there is no easier way.

Sensex and Nifty

Sensex and Nifty are the two important indices that track the Indian equity market.
There are however many differences in their construction and behavior. Investors must
choose one between the two to benchmark their portfolios. It is sometimes seen that
these
An index is used to give information about the price movements of products in the
financial, Commodities or any other market. A stock index is created to provide
investors with information regarding the average share price in the stock market.
Generally the stock price of any company is vulnerable to three types of news:
 Company specific
 Industry specific
 Economy specific

Functions of an index:

The main objective is to give all market participants an indicator of the general
movement of the stock.
 The primary function of a stock index is to serve as a barometer of the equity
market. The ups and down in the index represents the movement of the equity
market.
o Investors can have a clear picture on equity market.
 Secondly, stock market indices are lead indicators of the performance of the
overall economy. Similarly, sectoral index serves as a lead indicator of the
performance of that particular sector.
o Perhaps, the most important use of an equity market index is as a
benchmark for a portfolio of stocks. The systematic risk of one’s portfolio
can also be measured by comparing it to the index.
 Finally, indices are useful in modern financial applications of derivatives. Indices
serve as the underlying for Future & Options products. In the Indian market, both
Sensex and Nifty are underlying for Futures and Options contracts.

 Margin Trading

 Margi
n Trading is nothing but borrowing money to invest in stocks, Here the investor
borrows money from his/her broker to invest in stocks through the same broker.
The “margin” here is the money actually borrowed from the broker. The margin
loan can be up to 50% of the total amount invested. This effectively means that
you can invest in shares worth Rs 100 by borrowing Rs 50 from your broker. This
is called buying shares on a 50% margin. If the value of the shares goes down,
the investor has to pay a “maintenance margin” to bring the margin up to 40% of
the market value of the shares. This margin is paid when the broker makes a
“margin call” to the investor, and investor has to pay the difference between

current margin and maintenance margin to take it . to 40%. If the margin falls
 below 30%, the broker has the discretion of liquidating the client’s holdings and
thus recovering the loan advanced.
 to 40%. If the margin falls below 30%, the broker has the discretion of liquidating
the client’s holdings and thus recovering the loan advanced.

 Risks in Margin Trading:

 You can lose more money that you have invested

 You may have to deposit additional cash or securities in your account on short
notice to cover market losses;

 You may be forced to sell some or all your securities when falling stock prices
reduce the value of your securities

 Your brokerage firm may sell some or all of your securities without consulting you
to pay off the loan it made to you.

 Benefits of Margin Trading:

o wants to buy more shares than the cash available.
o The main benefit of Margin Trading for the investors is that it serves as an
avenue for the investor who The investor leverages the transaction and
aim to make more money on the investment than the interest payable on
the margin loan.
o It can be very effective tool in the hands of the experienced and heavy
trades, who can invest up to double his investible sum in the hope to earn
high profits.
 o Trading on Margin improves liquidity in the market. With lesser amounts of
cash with investors, they can assume higher risk and can invest in higher
value of stocks.
o The Official and structured market for Margin Trading will most likely lead
to an expansion of day trading activity in the market.
 Day Trading provides the market needed liquidity to the equity
market.

Online Trading
Investors can have complete control of their stock investing actions, now that they have
the convenience of buying and selling shares on the NSE online and in real time.
Each individual has access to the latest information and tools to analyse any stock
investment decision. Plus the power to execute the sale or purchase right before them
on their personal computer screen.
Advantages of online trading:
 The convenience of desktop investment-trade from anywhere at any time.
 Not just online but real time-from placing an order to having it executed-in a few
seconds.
 Continuous feedback of all transactions orders and their status.
 three level security via Firewalls, data encryption using Secure Socket Layer
(SSI) technology, User IDs and Passwords i.e your personal information remains
for your eyes only.
 Online access to a wealth of live information that can facilitate better investment
decisions.
 Corporate Offer

Sno Parameters KAYNET

Competitors offer
1 Facilities Only offline or online Both
2 A/c Opening charges Rs 250+ or 750 Rs 600(lifetime)
3 Annual Maintenance Rs 250+ 250
charges
4 0.15% 0.10(negotiable)
Brokerage-Intraday
5 0.75% 0.30(negotiable)
Delivery
6 Min Charges Rs 10 to Rs 25 1 Paisa
7 Margin-Intraday Generally 6 to 10 times 10 times
8 Delivery No carry forward 3 times
9 Equity analysis Do not have Updated analysis of
200 companies.
10 Technical charts Do not provide Provided on trade
terminal
11 Transparency Not so transparency Everything
provided online

RESEARCH METHODOLOGY
 Objectives of the study:
  Object
ive of this study is to find out Kaynet Securities services for, Demat account,
Equity market, and Derivative market. Project is sub-divided into the following
objectives:
 To find the competition of equity market especially in NSE trading and bring out
the awareness level of the investors who are trading with National Stock
Exchange.
 To find the advantages of the Demat account and charges by various depository
participants.
 To study the trading procedure of Kaynet Securities and comparison of the
broking firms.
 To find the cost saving analysis on the brokerage charges by the Kaynet
Securities on the share and derivative trading with the other broking firms.

 Positioning of Kaynet in Jaipur.

 Universe
 ALL TYPE OF INVESTORS

Investor is a person who invests money to earn profit or interest on the investment, it
can in the form of deposits, lending in the form of loans or investing.

Population
 ALL INVESTORS DEALING IN SHARE MARKET (PRIMARY\SECONDARY) OR
DERIVATIVES
 Securities available for the first time are offered through the primary securities
markets.
 The issuer may be a brand-new company or one that has been in business for
long time, like that of maruti. The securities offered may be a new type for the
issuer or additional amounts of a security used frequently in past. The key is that
these securities absorb
 Information Source:
Investors from Various firms, Relationship managers, Internet, magazines, Brokers &
Sub-brokers in Jaipur, Telecalling references generated from respondents
interviewed.

 Sample size

BROKERS AND SUB BROKERS IN JAIPUR

Share brokers and sub-brokers (including on-line line & off-line brokers)
 On-line broking firms: Kotakstreet.com, 5Paisa.com, ICICI Direct.com, Share
khan.
 Off-line broking firms: Anand Rathi, H.C.Jain & Co., Hem Securities, Eureka
Securities, Alankit Assignments and others.

SHARE TRADERS

500 share investors dealing in either primary or secondary market.

Sampling

Simple random sampling technique used to get an unbiased overview.

Data Type Primary Data And Secondary Data

Data Collection Technique Personal Interview

Data Collection Tools Schedule, Journals, Kaynet group.com

Other books and websites

 Analysis of data:
 Data analysis is done with the help of bar charts; pie charts, tables and certain
mathematical tools are also applied to derive the results.
 Market Analysis
Q.1 Are you aware with the term Market and Securities?

Inference:-when enquired with the 60 respondents during the process of survey we

came to know that mostly 54 respondents were aware with the term market and
securities.
Whereas 6 out of them are not aware due to some of the leckness or not properly aware
with the fact of trading in securities.
It means that there’s a lot more to make educated the people at large about the hassle
free trading in the securities through Kaynet.

Q.2 If yes, Do you deal in the market.?

 Inference:- From the positive reply holders of 54 respondents, 48 agreed that they
prefer to deal in the securities market, shares and bonds.
Again 6 of them told us that they don’t trade in the market securities.
This led us to make them aware by defining simplest company norms and how they
can systematically deal through opening the Demat Account in and how Kaynet will
take care of their all the funds with ease and comfort.
There is a wide demand and interested investors who are keen to put their money into
risk free growing returns investments.
So that they may be able to secure their future financial wise and to beat the heat of
inflation.

Q.3 If yes, have you listen the name of KAYNET SECURITIES and traded with it?
Inference:- out of total 48, 44 individuals are very well aware with the trading and
dealing in the securities market with Indias and are keen to open D’mat accounts with
the company.
So the total respondents have said no because they are new in the town or they are not
interested in putting their money into share market and it’s related activities.
As far as the name of Kaynet is concerned, people are knowing the esteemed name
and are showing their interest in joining the same for their prospective return on their
investment.
Generally, people have faced a difficulty regarding who will handle their funds but
Indiabulls has come out to remove their difficulty and to ease their dealing in the
securities as the professional are regularly eyeing on the stock market and making their
single efforts to grow the investment return and can service their customers to the best.
But to trade with Kaynet capital securities is a great experience for them and the people
are now shifting to Kaynet securities for their potential investments gains.

Q.6 Are you aware with the term Dematerialization of accounts?

Inference:- From the known respondents of 48, it has been inferred that 34 of them are
known with the term Dematerialization of the accounts as it is very important in today’s
life for one to deal in the share market.
Rest 14 individuals are quite unaware or less aware and need to be guided them
properly so that they may be to deal systematically in their securities via KAYNET
CAPITAL.
Q.7 Have you opened your De-mat account while trading with securities?

Inference:- Out of the 34 respondents who are aware with the term of Dematerialization
of the accounts, 30 individuals have already or opened their accounts with us for their
safe, secure and return growing investment trading.
Still 4 of the individuals have not opened their accounts but they will open their accounts
in a month or so since they turn to us positively.
Now what is necessary is to open the D’Mat account if one investor want to trade safely
and with secure funds.
There are few formalities need to be accomplished so that after that a holder of account
can deal with the securities and the fund amount will be transferred to his/her account
when so ever there is a upward trend.
Q.8 Do you wish to open D’mat account with Indiabulls securities which takes
care of your all financial services to the maximum satisfaction of yours?
Inference:- When enquired with the 48 positive respondents that they wish to open the
D’mat accounts with KAYNET CAPITAL for themselves or for their near ones who is
interested in trading and dealing in securities, We receive 29 positive individuals who
want to open their accounts with us.
13 said later because they have already opened their accounts and wishes to continue
and need not required.
6 said No., because they have opened their accounts with one or other firms dealing
in securities.

Q 9. Where do you preferably invest your money besides securities?

Inference:- Besides securities entire 60 respondent’s preferences to invest in the

following one or more of the financial services.

In Mutual fund = 16
In Bank = 34
In Insurance = 20
In PPF/RDs = 18
Q.10 Do you agree that to beat inflation and present financial crisis and to sustain
in the Indian economy one has to invest his hardcore money in the high return
generating schemes or plan where he can avail many benefits in a cost of one?

Inference:- It has been a group positive reply regarding if to sustain in the world of
inflation and global financial crisis one has to make investment which gives high return
so that they can be able to meet their future requirements of their near ones with ease
and comfort.
People are now more inflation conscious and feeling that to beat the inflation one has to
secure his future funds and to get potentially higher returns to sustain wealthy.

Swot Analysis of The Indiabulls

 Swot Analysis Means the Analysis of the Particular Topic in the Four Following
Basis There Is the Swot Analysis Means The

o Strength
o Weakness
o Opportunities
o Threats

o Strength :
 Strength Means The Strength Of the Company That is the KAYNET CAPITAL
is the most famous and biggest company of the share broking company in
 India there is the lot of the branch and the online share company brooking in
the all those particular branch .
 In Indian share market is the fastest growth market of the world there is the 95
branch in the Indian share market.
o Trading via Branch network, telephones and internet. You can place
orders after market hours also.
o Buy today sell tomorrow facility that other company is not lproviding.
o Personal relationship with the client.
o Exposure of 10 Times on intraday trading and times delivery
o Insurance of customer through Birla insurance.

 Wea
kness:
 Weakness is the most week part of the company in the company so that is not
right by the company in the Indian share marke the very limitation and that is
the two of the weakness are controllable and uncontrollable. There are the
limitation and weaknesses of the KAYNETas follows.
o Finding can not be generalized all over India.
o The research undertaken is strictly with in the time frame of 15 may till 30
June 2006
o Several Branches are closed in India in last few months.
o Several suggestions could not be included in the report because more of
research works are required for them.
o The finding of the research are directly in accordance with above
mentioned time period and are directly proportional to market condition.
 o Opportunities :
 opportunities are the most findable part of the new market by the company the
opportunities of the sharmearkerts are the may are in the India and the world
wide so the opportunities of the Indian stock market in the India bulls are as
follows.
 Opportunities are lots of hare in the India of the share market are here because
the Indian stock markets tremendous growth in the last few years .
 share market is the most famous in the among the people because everyone of
the people wants to investment so that he get receive more return.
 in will introduce in the several medium and small city so that every one can
investment in these sharebroaking company.

 4
Threats

 Threats means the opportunists will lost by the company the recent few issues
in the Indian market is that it is highly crisis of the world wide economy because
in the last months the world economy is the highly facing the receas tion
 so that in presents the company was closed the many branch in through out
the country . and the banking operation are also included in this point .

 Limitations:

o Findings cannot be generalized all over India

• The research undertaken is strictly with
in the time frame of 15 May till 30 June
2004
 • Several suggestions could not be
included in the report because more of
research works are required for them.
• The findings of the research are directly
in accordance with above mentioned
time period and are directly proportional
to market conditions
• The result is just an instantaneous view
of the equity market scenario.
• Although every care has been taken to
make sure that the research is accurate
to the highest degree of significance but
still a slight possibility of errors cannot
be ruled out.

Conclusion
Over all Kaynet is providing better deal to investors in Jaipur city and the products of
Kaynet are updated, monthly wise for customer’s convenience. There are no
hidden costs charged from investors till today. The Turnover of the company is
high (40 crore) and acted as one of the largest retail financing company (33%
market share) and the company is providing convenience of buying and selling
shares on NSE online.

 Suggestions

o Interest rate on Funds Provided to investors on margin trading have to

be reduced
o From the survey conducted, I found that interest rate on funds provided to
investors is more than other competitive firms. so company should take
care of this issue and try to have solution on this aspect which I felt more
important.

 Brokerage rate on trading have to be reduced.

Even this one of the major factor that has to be
taken care of, because competitors are
providing lesser brokerage both Intraday and
Delivery trading which satisfies customer who
are investing and trading frequently.

 Tapping the high income groups

 o Company should focus on High-income groups and Level to be
maintained. They can better profit to the company and can increase the
turnover of the company.

 Question About Investment

 What is the Beta Factor?

 What is the Buy Back Share?
 What is The Security Pricing?

 What is the portfolio and how it is Management?

 What is the Demet?

 How can find that the security is risk?

 Why we open a Demit Account?

 What is the Portfolio?

 What is the India bulls Future?

 10.What is the Right Issue?

 What is the Short Selling?

 What is the spot Market?

 GLOSSARY\TERMINOLOGY

 Arbitrage- Profiting from differences in price of the same share traded on two
or more stock exchanges.
  Automated Screen Trading- Electronic trading in stocks through Visual
Display Units (VDU). The associated computer enters, matches, and executes
the deal. It makes possible a floorless exchange and brings transparency to
deals.

 Bears- Those who sell shares anticipating a fall in prices.

 Bear Hammering- Persistent selling pressure by bears, bringing the prices

down.

 Beta Shares-Listed, but infrequently traded, shares of companies with a

generally low equity capital.

 Blank Sales- Sale of securities by BEARS who do not possess the securities at
the moment of selling, but hope to buy them at a lower price when the market
has fallen.

 Book Closure-Before a company declares a dividend or issues bonus or rights

shares, it closes its register of members for a certain period, from one week to a
month, during which no transfer of shares is registered.

 Brokers- are intermediaries who compete for the right to help people buy or sell
something of value on his client’s behalf.

 Bulls-Those who buy shares in anticipation of increase in price.

 Call Option- Right to buy at fixed price.

 Capital Market-includes primary market, securities market term lending
institutions, banks, investors engaged in providing long-term capital (whether
equity capital or debt capital) to the Industrial Sector.
 Commodities Market-Market for trading bulk & basic goods like grain, edible
oils, rubber, cotton, metals, etc. Certain special items like tea & coffee are traded
in auctions with inspection facilities for the goods.

 Day Trading-Buying and selling the same share during a single day, hoping to
make a profit from price fluctuations.

 Derivatives- is a product whose value is derived from the value of underlying

asset, index etc. The underlying assets can be equity, forex commodity, or any
other asset.

 Government Securities- means a security created & issued by the Central

Government or State Government for the purpose of raising a public loan.

 Equity Market- Ownership of tangible assets are bought & sold in Equity Market.

 Floor Broker-A person who actually does the buying & selling of shares on
behalf of a member of the stock exchange for a small share of the commission
charged by a broker.

 Forward Dealing/Trading-Contracts to buy or sell specific quantities of goods,

currency, or freight at a stated price and a stated time in the future. Forward
contracts are bought & sold in the FUTURES MARKET.
 Futures-Shares or commodities bought or sold for delivery at a future date.
These can be sold at a profit before delivery if prices in the market have
changed.

 Hot Shares- 1. Shares in great demand. 2. Stolen shares.

 IPO- Initial Public Offering. New shares offered to public in the Primary Market.

 Jobbers- Broker’s broker. One who specializes in specific securities catering to

the needs of other brokers.
 Liquid Market- One where the size of an order creates minimal affects on the
transactions price.

 Lot-A fixed number in which shares are bought & sold.

 Low-The lowest price paid for a share in the last twelve months.

 Market Capitalization- The total market value, at the current stock exchange list
price, of the total number of equity shares issued by a company.
 Market Price- The last reported price of a share at which it was sold on the stock
exchange.

 Market Lot- Each Company specifies the minimum number of securities, which
makes an even or market lot.
 Maturity-Day on which option is exercised.

 Meltdown- The phenomenon of fast, uncontrolled fall in share prices.

 Member Code- A unique code given to each member of the stock exchange to
enable the clearing house to check his payment or delivery position.

 Naïve Buy-and-Hold Strategy- Selecting shares randomly, buying them, and

holding them regardless of any information available in the market.

 One Way Market- A market dominated by only buyers or sellers.

 Over the Counter Market or OTC Market- A market where shares which are not
listed on the stock exchange are traded.

 Panic Selling- A condition of the stock market in which not only inexperienced
investors, but also sturdy bulls, take fright and start selling.

 Portfolio- Combined holding of many kinds of financial securities- shares,

debentures, government bonds, Unit Trust certificates, and other financial assets.
Reducing risk by diversification and maximization of gains are the primary
objects.

 Portfolio Manager- A professional who manages other peoples’ or institution’s

investment portfolios with the objectives of profitability, growth and risk
minimization.

 Premium- 1. A price above the face value of a share or any other financial
security.
 Price paid for buying an Option.

 Put Option-Right to sell at fixed price.

 Quotation- Highest bid and lowest offers for a share.

 .

 Quoted Shares- The shares of a company which are officially registered on a

stock exchange, and whose prices are quoted on the Official List.

 Retail Investor- He is the individual buying shares for himself, as opposed to the
institutional investor who buys for others.

 Rigging- Manipulation of share prices so as to attract naïve investors to buy or

sell shares.
 Rights Issue- Issue of shares at par or at a premium by an existing company to
its shareholders in a certain proportion to their holdings, as a matter of their right
to receive preferential treatment.
 Bibliography

 www.nseindia.com
 www.sebi.gov.in
 www.indiabulls.com
 www.kotakstreet.com
 www.indiainfoline.com
 www.yahoofinancials.com
 www.hindubonline.net
 www.icicidirect.com