CHAPTER – 1

ABOUT THE INDUSTRY

In India the growth of financial sector at present is nearly 8.5% per year. The increment in the
growth rate indicates the growth of the economy. The financial sector is a section of the
economy made up of businesses and institutions that provide financial services to commercial
and retail customers. Financial sector plays a very important role in our economy. It consists of
businesses , corporations, banks, and financial institutions who provide financial services and
keeps an economy going. When there is a financial crisis or recession, the government provides
the industry with quick assistance.The two main pillars of the sector are banking and insurance,
which provide loans, mortgages, and insurances polices.

A country's total welfare is enhanced by its citizens being able to thrive, better manage their
needs, increase opportunities, and raise their living standards contributes to the overall benefit of
a nation. India’s banking system has completely transformed. Currently new features like
Internet banking and core banking have improved the usability and simplicity of financial
operation. The Government of India has introduced several reforms to liberalize, regulate and
enhance this industry. The Government has taken various support measures to ease the access
to finance their businesses. These measures include launching deposit insurance schemes,
guarantees for bank bonds, capital injection schemes.

The financial sector generates a good portion of its revenue from loans and mortgages.In a
situation where interest rates are falling, these increase in value. When interest rates are low, the
economy creates more opportunities for investment and capital projects. The financial industry
gains from this, which results in higher economic growth. National Stock Exchange (NSE) is a
India’s largest financial market and Nifty is a popular stock market index that has been
introduced by the National Stock Exchange (NSE). According to the Fact sheet of Nifty 50 29
July 2022 Financial Services is the top sector , Weight of Financial sector is 36.55%. Capital
market are becoming increasingly important for financing infrastructure, such as buildings,
roads, and power plants, as well as for managing unpredictable risk. In order to help the globe
achieve these worldwide goals, private sector funding and investment must be involved.

The financial sector includes a wide variety of sectors, including banks, investment houses,
insurance firms, real estate brokers, consumer finance firms, mortgage lenders, and real estate
investment trusts (REITs). Financial institutions, banks, and non-banking financial institutions
are the main components of the financial industry. This institute provides financial services to
their clients and members. It is also called financial intermediaries. Banking play very important
role in financial sector, who collect deposits, generate revenue for lenders, and give capital.

Many people connect Wall Street and the exchanges there with the financial industry. The
financial sector is one of the most important parts of many developed economies. It consists of
brokers, financial institutions, and money market ,which all offer the services required to keep
Main Street operating every day.

Numerous depository banks, companies that offer investment products, insurance providers, and
other organisations that provide credit and financing are all part of the financial services sector.
Financial services sector allow these product to customers, first deposit funds and make
payments to other parties, second provide credit and liquidity to customers, third invest fund for
both long and short periods, last transfer financial risk between customers.

Significance of Financial Sector

As we discuss above that how financial sector play very important role in economy. There are
many ways in which the financial sector benefits an economy and its stakeholders such as

 It uses the funds accumulated by the individuals and businesses for the people and
businesses and eventually contributes to a healthy economy. The financial sector thrives
on loans, interests, mortgages, debt finance, insurance premiums and credit lines
necessary for businesses, houses, education, healthcare, etc.
 The sector produces money that helps the economy and businesses run smoothly. The
Government always supports the sector by implementing new laws and reforms. It also
provide the free flow of capital and liquidity in the marketplace.
 When the sector and economy is strong, consumers normally earn more. So if
consumers earns more this boosts their confidence and purchasing power. They turn to
the financial services sector for borrowing when they require access to credit for
important purchases.
 As we know financial services sector boost the economy of the nation, but if the sector
fails, however, it can drag a nation’s economy. This can lead to a recession. To avoid this
phase economists and business experts link the sector to a countries economy.
 When people invest in mutual funds or buy shares of a company, they support a
company. As the company expands, the investor makes money and the sector also
expands. Financial sector businesses, such as private or public banks, insurance
companies, and real estate enterprises, could be severely impacted by a crisis.
 CHAPTER – 2

ABOUT THE ORGANIZATION

Arihant Capital Markets Limited is an India-based financial services company. The

Company, along with its subsidiaries, provides equity, commodity and currency broking
services, merchant banking services, distribution of financial products, financial planning,
and depository services by means of its investment facilities. Its products and services
include equities and derivatives broking; commodities and currency broking; priority client
group; mutual funds and initial public offering (IPO); bonds and non-convertible debentures
(NCDs); national pension scheme (NPS); affordable housing; insurance broker; merchant
banking, and loan against shares. Its subsidiaries include Arihant Futures and Commodities
Limited, Arihant Financial Services Limited, Arihant Lifespace Infra Developers Limited,
Arihant Insurance Broking Services Limited, Arihant Financial Planners and Advisors Pvt.
Ltd., Ahinsa Lifespace Infraheight Limited, Electrum Portfolio Managers Limited and
Arihant Capital (IFSC) Limited.

2.1 HISTORY OF THE ORGANIZATION

The Company was officially registered with M.P., the Registrar of Companies. 29 years ago,
they made a commitment to generate wealth for individual investor. They provide a range of
products and services including equities, commodities, currency, financial planning, depository
services, priority client group services (PCG), merchant banking and investment banking
services to a substantial and diversified clientele that includes individuals, corporations and
financial institutions. Arihant Capital provides investing and trading services to over 1.45lakh
customers through its 800 plus investment centers that are spread over 185 plus cities in India.

(1992-95)Incorporated, Gwalior on June 25, 1992 as a Public Limited Company and obtained
theCertificate of Commencement of Business on October 30, 1992. The main objective is the
company was promoted with Merchant Banking, trading in share, underwriting, Portfolio
management, investment, broking, security, trading, financial services and investment services.

(2000-04)In 2000-2002 Arihant took NSE membership Established Corporate Office and
Institutional Desk in Mumbai, In 2002 took membership of BSE, and in 2003 arihant capital also
took the membership of NCDEX & MCX in 2004.

(2005-06) Arihant Capital Markets Ltd has informed that Mr Ashish Maheshwari & Mr Rakesh
Jain, who have given their consent to act as directors of the company, have been appointed as
Additional Directors of the Company on December 01, 2006 at duly held meeting of Board of
Directors of the Company. Arihant capital acquired commodities broking license, launched
online trading portal and PMS services.

(2007-08) In 2007 Arihant started online IPO services and in 2008 launch of currency derivatives
& Interest rate. And also Commenced Distribution of Personal finance Product Insurance &
Bonds.

(2009-11) In 2009 they arrange of NHAI and REC bonds and in 2011 company has splits its
Face value of Shares from Rs 10 to Rs 5 and it have given the Bonus of 3:5. ‘Best Emerging
Broker of India’ at the Financial Leadership Awards, Forbes Asia ‘200 Best under a $ Billion’
List .

(2012-15) Arihant Capital Markets Ltd has acquired 51% shares of Arihant Financial Planners
and Advisors Private Limited. In 2013 they launched mobile trading and mobile back office and
also NSDL STAR Performer Award ‘ Top performer in New Accounts Opened’. The company
has advised dividend @15% i.e. Rs. 0.75 per equity shares on equity share capital of the
Company.

(2016-17) Established IBU (IFSC) NSDL STAR Performer Award 'Top performer in New
Accounts Opened', Krishi Pragati Award NCDEX NSDL STAR Performer Award 'Top
performer in New Accounts Opened'.

(2019) Received ISO 9001:2015 Certification