HR ROUND:-

#Do you know anything about Eclerx:-

eClerx Services Limited is engaged in providing Knowledge Process Outsourcing (KPO) services to global
companies. The company provides data management analytics solutions and process outsourcing
services to a host of global clients through a network of multiple locations in India and abroad. eClerx
Research and Development Centre is located in Mumbai India. The Centre is comprised of a state of the
art working lab and includes innovative technologies that help accelerate the design and development
of our numerous cutting-edge solutions. The Company was originally incorporated on March 24 2000 as
eClerx Services Private Limited.

#Are you ok with 1 year bond:-

Yes I am ok with the bond.

#Why do you want to work with Eclerx:-

I am interested in finance & eClerx is a platform where I can get many opportunities to showcase my
financial knowledge.

#Are you ok with Night shifts:-

Yes I am very much comfortable with all shift timings.

OPERATIONS ROUND:-
What is 'Investment Banking'?
Definition: Investment banking is a special segment of banking operation that helps individuals or
organizations raise capital and provide financial consultancy services to them.

They act as intermediaries between security issuers and investors and help new firms to go public. They
either buy all the available shares at a price estimated by their experts and resell them to public or sell
shares on behalf of the issuer and take commission on each share.

Description: Investment banking is among the most complex financial mechanisms in the world. They
serve many different purposes and business entities. They provide various types of financial services,
such as proprietary trading or trading securities for their own accounts, mergers and acquisitions
advisory which involves helping organizations in Mergers &Acquisitions,; leveraged finance that involves
lending money to firms to purchase assets and settle acquisitions, restructuring that involves improving
structures of companies to make a business more efficient and help it make maximum profit, and new
issues or IPOs, where these banks help new firms go public.

What is an Over-The-Counter Market?

An over-the-counter (OTC) market is a decentralized market in which market participants trade stocks,
commodities, currencies or other instruments directly between two parties and without a central
exchange or broker. Over-the-counter markets do not have physical locations; instead, trading is
conducted electronically. This is very different from an auction market system. In an OTC market, dealers
act as market-makers by quoting prices at which they will buy and sell a security, currency, or other
financial products. A trade can be executed between two participants in an OTC market without others
being aware of the price at which the transaction was completed. In general, OTC markets are
typically less transparent than exchanges and are also subject to fewer regulations. Because of this
liquidity in the OTC market may come at a premium.

#Define Derivatives:-

A derivative is a contract between two parties which derives its value/price from an underlying asset.
The most common types of derivatives are futures, options, forwards and swaps. It is a financial
instrument which derives its value/price from the underlying assets. Originally, underlying corpus is first
created which can consist of one security or a combination of different securities. The value of the
underlying asset is bound to change as the value of the underlying assets keep changing continuously.
*The 4 Basic Types of Derivatives:

Type 1: Forward Contracts

Forward contracts are the simplest form of derivatives that are available today. Also, they are the oldest
form of derivatives. A forward contract is nothing but an agreement to sell something at a future date.
The price at which this transaction will take place is decided in the present.

Type 2: Futures Contracts

A futures contract is very similar to a forwards contract. The similarity lies in the fact that futures
contracts also mandate the sale of commodity at a future data but at a price which is decided in the
present.

Type 3: Option Contracts

The third type of derivative i.e. option is markedly different from the first two types. In the first two
types both the parties were bound by the contract to discharge a certain duty (buy or sell) at a certain
date. The options contract, on the other hand is asymmetrical. An options contract, binds one party
whereas it lets the other party decide at a later date i.e. at the expiration of the option.

Type 4: Swaps

Swaps are probably the most complicated derivatives in the market. Swaps enable the participants to
exchange their streams of cash flows. For instance, at a later date, one party may switch an uncertain
cash flow for a certain one. The most common example is swapping a fixed interest rate for a floating
one. Participants may decide to swap the interest rates or the underlying currency as well.

#What is Finance?

Finance is defined as the management of money and includes activities like investing, borrowing,
lending, budgeting, saving, and forecasting. There are three main types of finance: (1) personal,
(2) corporate, and (3) public/government.

*Finance Examples
The easiest way to define finance is by providing examples of the activities it includes. There are many
different career paths and jobs that perform a wide range of finance activities. Below is a list of the most
common examples:

• Investing personal money in stocks, bonds, or guaranteed investment certificates (GICs)

• Borrowing money from institutional investors by issuing bonds on behalf of a public company
• Lending money to people by providing them a mortgage to buy a house with
• Using Excel spreadsheets to build a budget and financial model for a corporation
• Saving personal money in a high-interest savings account
• Developing a forecast for government spending and revenue collection
Top 10 Difference between Money Market and Capital Market

Basis Money Market Capital Market

Meaning A random course of financial institutions,
bill brokers, money dealers, banks, etc.,
wherein dealing on short-term financial
tools are being settled is referred to as
Money Market.
A kind of financial market where the company or
government securities are generated and
patronized for the intention of establishing long-
term finance to coincide the capital necessary is
called as Capital Market.

Nature of Informal Formal

Market

Financial Tools Commercial Papers, Treasury Certificate Bonds, Debentures, Shares, Asset Securitization,
of Deposit, Bills, Trade Credit, etc., Retained Earnings, Euro Issues, etc.,

Organizations Commercial bank, bill brokers, non- The stock exchange, Commercial banks, non-
financial institutions, the central bank, banking organizations like insurance companies
acceptance houses, and so on. etc.,

Risk Factor Low High

Liquidity High Low

Purpose To achieve short term credit To achieve long term credit requirements of the
requirements of the trade. trade.

Time Horizon Within a year More than a year

Merit Rises liquidity of capitals in the market. Mobilization of Economies in the market.

Return on Less High

Investment
 #Define Capital market:-

Capital market is referred to as a place where saving and investments are done between capital
suppliers and those who are in need of capital. It is, therefore, a place where various entities trade
different financial instruments.
There are two types of capital market:
• Primary Market
• Secondary Market

Comparison Chart
BASIS FOR
PRIMARY MARKET SECONDARY MARKET
COMPARISON

Meaning The market place for new shares is called The place where formerly issued
primary market. securities are traded is known as
Secondary Market.

Another name New Issue Market (NIM) After Market

Type of Purchasing Direct Indirect

Financing It supplies funds to budding enterprises It does not provide funding to

and also to existing companies for companies.
expansion and diversification.

How many times a Only once Multiple times

security can be sold?

Buying and Selling Company and Investors Investors

between

Who will gain the Company Investors

amount on the sale of
shares?

Intermediary Underwriters Brokers

BASIS FOR
PRIMARY MARKET SECONDARY MARKET
COMPARISON

Price Fixed price Fluctuates, depends on the

demand and supply force

Organizational Not rooted to any specific spot or It has physical existence.

difference
geographical location.

What Is the Bombay Stock Exchange (BSE)?

The Bombay Stock Exchange (BSE) is the first and largest securities market in India and was established
in 1875 as the Native Share and Stock Brokers' Association. Based in Mumbai, India, the BSE lists close to
6,000 companies and is one of the largest exchanges in the world, along with the New York Stock
Exchange (NYSE), NASDAQ, London Stock Exchange Group, Japan Exchange Group, and Shanghai Stock
Exchange.

What Is the National Stock Exchange of India Limited (NSE)

The National Stock Exchange of India Limited (NSE) is India's largest financial market. Incorporated in
1992, the NSE has developed into a sophisticated, electronic market, which ranked fourth in the world
by equity trading volume in 2015. Trading commenced in 1994 with the launch of the wholesale debt
market and a cash market segment shortly thereafter. It is a nationwide screen-based trading network
using computers, satellite link and electronic media that facilitate transactions in securities by investors
across India. The idea of this model exchange (traced to the Pherwani Committee recommendations)
was an answer to the deficiencies of the older stock exchanges as reflected in settlement delays, price
rigging and a lack of transparency.

NASDAQ

An acronym for National Association of Security Dealers Automated Quotations System, which is a
nationwide network of computers and other electronic equipment that connects dealers in the over-the-
counter market across the U.S. The system provides the latest BID and ASKING PRICES quoted for any
security by different dealers. This enables an investor to have his or her transaction done at the best price.
Due to NASDAQ, the over-the-counter market in the U.S. is like a vast but convenient trading floor on
which several thousand stocks are traded.
SEBI:- The SEBI is the regulatory authority in India established under Section 3 of SEBI Act to protect the
interests of the investors in securities and to promote the development of, and to regulate, the securities
market and for matters connected therewith and incidental thereto.

• Protecting the interests of investors in securities and promoting and regulating the development
of the securities market
• Regulating the business in stock exchanges
• Registering and regulating the working of stock brokers, sub–brokers, share transfer agent etc.
• Registering and regulating the working of venture capital funds, collective investment schemes
(like mutual funds) etc
• Promoting investor’s education and training intermediaries
• Promoting and regulating self-regulatory organizations
• Prohibiting fraudulent and unfair trade practices
• Calling for information from, undertaking inspection, conducting inquiries and audits of the
stock exchanges, intermediaries, self – regulatory organizations, mutual funds and other
persons associated with the securities market.

BASIS FOR
BULL MARKET BEAR MARKET
COMPARISON

Definition Bull market refers to the one, which Bear market is the situation when there is a
grows aggressively over a period of considerable fall in the market, month on
time. month.

Outlook Optimistic Pessimistic

Position Takes long position Takes short position

Investor response Positive Negative

Prices of stock High Low

Stock Trading More Less

Economy Grows Declines

Market indicators Strong Weak

What Is Simple Interest?

Simple interest is a quick and easy method of calculating the interest charge on a loan. Simple interest is
determined by multiplying the daily interest rate by the principal by the number of days that elapse
between payments.

Simple Interest=P×I×N
where: P=principle; I=daily interest rate; N=number of days between payments

#Debenture:-

The word ‘debenture’ itself is a derivation of the Latin word ‘debere’ which means to borrow or loan.
Debentures are written instruments of debt that companies issue under their common seal. They are
similar to a loan certificate.

Debentures are issued to the public as a contract of repayment of money borrowed from them. These
debentures are for a fixed period and a fixed interest rate that can be payable yearly or half-
yearly. Debentures are also offered to the public at large, like equity shares. Debentures are actually the
most common way for large companies to borrow money.

#What Is Equity?

Equity is typically referred to as shareholder equity (also known as shareholders' equity) which
represents the amount of money that would be returned to a company’s shareholders if all of the assets
were liquidated and all of the company's debt was paid off.

Equity is found on a company's balance sheet and is one of the most common financial metrics
employed by analysts to assess the financial health of a company. Shareholder equity can also represent
the book value of a company. Equity can sometimes be offered as payment-in-kind.

#What Is Working Capital?

Working Capital is basically an indicator of the short-term financial position of an organization and is also
a measure of its overall efficiency. Working Capital is obtained by subtracting the current liabilities from
the current assets. This ratio indicates whether the company possesses sufficient assets to cover its
short-term debt.

*Types of Working Capital

There are several types of working capital based on the balance sheet or operating cycle view. The
balance sheet view classifies working capital into net (current liabilities subtracted from current assets
featuring in the company’s balance sheet) and gross working capital (current assets in the balance
sheet).

On the other hand, operating cycle view classifies working capital into temporary (difference between
net working capital & permanent working capital) and permanent (fixed assets) working capital.
Temporary working capital can be further broken down into reserve and regular working capital as well.
These are the types of working capital depending on the view that is chosen.
*Working Capital Cycle

The Working Capital Cycle or WCC means the time period that is taken to convert net current liabilities
and assets into cash by any organization. This is an indicator of the organizational efficiency in terms of
effectively managing liquidity position in the short-term and the cycle, which is calculated in days, is
basically the time period between the generation of revenue through cash by selling products and the
buying of materials for producing these products.
The shorter this working capital cycle, the swifter will the company be able to free up its cash, which is
blocked. In case the cycle is long, the capital usually gets stuck without earning returns in the
operational cycle. Businesses always strive to lower this working capital cycle with a view towards
enhancing liquidity in the short-term.
*Working Capital Formula

The formula for working capital is the following:

Working Capital = Current Assets - Current Liabilities

#Share :-
In financial markets, a share is a unit used as mutual funds, limited partnerships, and real estate
investment trusts.[1] The owner of shares in the company is a shareholder (or stockholder) of the
corporation.[2] A share is an indivisible unit of capital, expressing the ownership relationship between
the company and the shareholder. The denominated value of a share is its face value, and the total of
the face value of issued shares represent the capital of a company,[3] which may not reflect the market
value of those shares.
The income received from the ownership of shares is a dividend. The process of purchasing and selling
shares often involves going through a stockbroker as a middle man.[4] There are different types of shares
such as equity shares, preference shares, bonus shares, right shares, and employees stock option plan
shares.

*Types Of Shares

Equity Shares: Also known as the ordinary shares, equity shares are the most common type of share.
Equity shares are equal in value and also impart voting and other rights, dividend and other such rights
to the shareholders. Equity shares are traded on the stock exchange are issued are different face values.

Preference Shares: As the name suggests, preference shares are preferential in nature. In the events of
liquidation of the company, the preferential shareholders are paid out first after settling the debts of the
creditors of the company. However, preference shareholders do not get a voting right. There are
different types of preference shares including:
 • Cumulative Preference Shares: A cumulative preference shareholder has a right to claim fixed
dividend of the current year out of the future profits. The dividend accumulates unless it is
paid to the shareholder. The accumulated arrears of dividend are to be paid before anything
is paid out of the profits to the holders of any other class of shares.
• Non-cumulative Preference Shares: Non-cumulative preference shares are those shares
wherein the dividend is paid only out of the profits earned by the company in the financial
year and cannot accumulate to be paid out of profits in future. The shareholder cannot claim
any dividend if the company has not earned any profits in that financial year.
• Participating Preference Shares: In case of participating shares, the shareholders can claim a
fixed rate of dividend as well as participate with the equity shareholders in surplus profits
remaining after the dividend is paid to equity shareholders.
• Non-participating Preference Shares: The shareholder can only claim a fixed rate of dividend
and cannot participate in the surplus profits of the company.
• Convertible Preference Shares: The shareholders get a right to convert their preference
shares into equity shares within a certain period of time.
• Non-convertible Preference Shares: These preference shares cannot be converted into equity
shares at a later stage.
• Redeemable Preference Shares: Redeemable preference shares can be redeemed after a
certain period or after giving a certain notice at any time at the will of the company out of the
profits of the company or sale proceeds of the new shares.
• Irredeemable Preference Shares: Irredeemable preference shares are permanent in nature
and cannot be redeemed during the lifetime of the company.

Stocks : A type of security that signifies ownership in a corporation and represents a claim on part
of the corporation's assets and earnings.

• What is the difference between stocks and shares?

Ans: “Stock” is a general term used to describe the shares of any company and "shares" refers to a
specific stock of a particular company. So, if investors say they own stocks, they are generally referring
to their overall ownership in one or more companies. If investors say they own shares - the question then
becomes - shares in what company?

#What Is Reconciliation?
Reconciliation is an accounting process that compares two sets of records to check that figures are
correct and in agreement. Account reconciliation also confirms that accounts in the general ledger are
consistent, accurate, and complete.

Account reconciliation is particularly useful for explaining the difference between two financial records
or account balances. Some differences may be acceptable because of the timing of payments and
deposits. Unexplained or mysterious discrepancies, however, may warn of fraud or cooking the books.
Businesses and individuals may reconcile their records daily, monthly, or annually.
#What is Trade life cycle?

In the financial market, “trade” means to buy and/or sell securities/financial products. To explain it
further, a trade is the conversion of an order placed on the exchange which results in pay-in and pay-out
of funds and securities. The trade ends with the settlement of the order placed. All the steps involved in a
trade, from the point of order receipt (where relevant) and trade execution through to settlement of the
trade, are commonly referred to as the ‘trade lifecycle’.

The Trade Life Cycle mainly divided into two parts:

1. Trading Activity
2. Operational Activity

Trading Activity: Under this activity, it covers all process and procedure to capture trade from the client
via front office and enrich that trade so it will able to send it for operational activity. This activity has two
parts.

• Trade Execution
• Trade Capture (Front office)

Trade Execution: In this logical step we determine the trading business channel where sellers and buyers
execute trades. On the basis of business channel trading markets classified into two categories.

1. Quote-driven Markets: In markets where market makers publicise (quote) prices at which they are
prepared to buy and sell with the intention of attracting a counterparty, the market is said to be
‘quote-driven’. Examples of quote-driven markets where quoted prices are displayed on computer
screens are Nasdaq (US), SEAQ (UK) and the Eurobond market trade execution typically occurs by
telephone or electronically.
2. Order-driven Markets: In markets in which orders from sellers are compared and matched with
buyers’ orders electronically, the market is said to be ‘order-driven’.
Examples of order-driven markets are SEATS (Australia), Xetra (Germany), SETS (UK).

Trade Capture (Front office): The successful capture of a trade within a trading system should result in
the trade details being sent to the back office immediately, via an interface, for operational processing.
Where an STO (Securities Trading Organisation) has no trading system (nowadays a rare circumstance),
the trade detail is usually recorded manually, by the trader or market maker, onto a ‘dealing slip’ this will
require collection by, or delivery to, the middle office or settlement department for operational
processing. Under these circumstances, the trader or market maker will need to maintain their trading
position manually, keeping it updated with any new trades.

#What Is Arbitrage?

Arbitrage is the purchase and sale of an asset in order to profit from a difference in the asset's price
between markets. It is a trade that profits by exploiting the price differences of identical or similar
financial instruments in different markets or in different forms. Arbitrage exists as a result of market
inefficiencies and would therefore not exist if all markets were perfectly efficient.
 #Hedge Funding:-

A risk management strategy used in limiting or offsetting probability of loss from fluctuations in the
prices of commodities, currencies, or securities. In effect, hedging is a transfer of risk without buying
insurance policies.

Hedging employs various techniques but, basically, involves taking equal and opposite positions in two
different markets (such as cash and futures markets). Hedging is used also in protecting one's capital
against effects of inflation through investing in high-yield financial instruments (bonds, notes, shares),
real estate, or precious metals.

#Compound Interest:-

Compound interest, or 'interest on interest', is calculated with the compound interest formula. Multiply
the principal amount by one plus the annual interest rate to the power of the number of compound
periods to get a combined figure for principal and compound interest. Subtract the principal if you want
just the compound interest.

AML – Anti Money Laundering

Anti-money laundering refers to a set of laws, regulations, and procedures intended to prevent criminals
from disguising illegally obtained funds as legitimate income. Though anti-money-laundering (AML) laws
cover a relatively limited range of transactions and criminal behaviors, their implications are far-reaching.
For example, AML regulations require that banks and other financial institutions that issue credit or allow
customers to open deposit accounts follow rules to ensure they are not aiding in money-laundering.

Types of AML

• Placement
• Layering
• Integration

Retained Earnings

Net profits kept to accumulate in a business after dividends are paid.

Custodian

A financial institution that has the legal responsibility for a customer's securities. This implies management
as well as safekeeping.