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.

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

What is reconciliation
Reconciliation is an accounting process that compares two sets of records to check that figures are
correct. reconciliation also confirms that accounts in the general ledger are consistent, accurate, and
complete.
- Account payable
When a company purchases goods and services from a supplier or creditor on credit that needs to be
paid back in a short period of time, the accounting entry is known as Accounts Payable
On a balance sheet, it appears under current liabilities. In a company, an AP department is responsible
for making payments owed by the company to suppliers and other creditors.

- Account receivable
The balance of money due to a business for goods or services provided or used but not yet paid for by
customers is known as Accounts Receivable.
These are goods and services delivered by a business on credit to their customer with an
understanding that payment will come at a later date.

-Investment banking
An investment banking is a special type of financial institution that aims to help companies access
capital markets to raise money and take care of other business needs.
Investment banking activities include underwriting new debt and equity securities for all types of
corporations, aiding in the sale of securities, and helping to facilitate mergers and acquisitions,
reorganizations, and broker trades for both institutions and private investors.
Investment bankers help corporations, governments, and other groups plan and manage financial
aspects of large projects.
-Trade settlement
Trade settlement is a two-way process which comes in the final stage of the transaction. Once the
buyer receives the securities and the seller gets the payment for the same, the trade is said to be
settled.
While the official deal happens on the transaction date, the settlement date is when the final
ownership is transferred. The transaction date never changes and is represented with the letter ‘T’.
The final settlement does not necessarily occur on the same day . The settlement day is generally
T+2.

Corporate action
Corporate actions are taken by the board of directors of a company. These are then approved by its
shareholders. These actions have a bearing on the assets of the company. Corporate actions include
changing the name or brand of a company, issuing dividends, spinoffs, mergers and acquisitions etc.
Types of corporate actions:
1.Mandatory corporate action :
These actions are initiated by the board of directors of a company. Though these actions have an
effect on the entire company, the shareholders have a little say in the decision making process, and
they generally have to accede to the decisions taken. Examples of mandatory corporate actions
include stock splits, mergers and acquisitions and issuing cash dividends.
2.Mandatory corporate actions with options: These are gain taken by the board of directors, and
provide various options to the shareholders. For instance, the company can decide to offer dividends
to its shareholders in the form of either cash dividends or share in its stocks. The shareholder can
choose either, and in the event of the shareholder failing to exercise any option, the company can
choose to enforce its default option.
3.Voluntary corporate action: These are actions where shareholders can participate. Any voluntary
corporate action requires active participation from its shareholders. For instance, in the case of tender
offers, the company requires response from shareholders regarding their willingness to participate in
the offer. Shareholders choosing to participate in the tender offer can receive a payout from the sale
of tendered shares.

What is IPO (Initial Public Offering)

IPO means Initial Public Offering. It is a process by which a privately held company becomes a publicly-
traded company by offering its shares to the public for the first time. A private company that has a
handful of shareholders shares the ownership by going public by trading its shares. Through the IPO,
the company gets its name listed on the stock exchange.

There are two types of IPO

Fixed Price Offering
Fixed price offering is pretty straightforward. The company announces the price of the initial public
offering in advance. So, when you partake in a fixed price initial public offering, you agree to pay in
full.
Book Building Offering
In book building offering, the stock price is offered in a 20 percent band, and interested investors place
their bid. The lower level of the price band is called the floor price, and the upper limit, cap price.
Investors bid for the number of shares and the price they want to pay. It allows the company to test
interest for the initial public offering among investors before the final price is declared.

What is capital market and its types

Capital market is a market which is used to long term capital, capital market are market for buying
and selling equity and debts instruments.
There are two types of capital market.
A) primary market-
when company issue his shares first time in the market that time used primary market,
government and public sector companies can obtain funds through the sale of a stock or bond issue
through the primary market.
B) Secondary market-
when existing company want to issue his shares for reused capital that time use secondary market.

-what is money market

The money market is a component of the economy which provides short-term funds. The money
market deals in short-term loans, generally for a period of a year or less.
Money market has become a component of the financial market for buying and selling of securities of
short-term maturities, of one year or less, such as treasury bills and commercial papers.
There are 5 types of money market
1.Treausry bills
2.Commercial Papers
3.Certificates of Deposits
4. Repurchase Agreements
5-Banker’s Acceptance

-what is derivative
Derivative is security which value depend from another asset, derivative is contract between two
parties which derives its value from an underlying asset like stock, bond.
There are 4 types of contract
A) future contract
Future contract is an agreement between two parties, buyer and seller to buy and sell something at a
future date.
B) forward contract
A forward contract is agreement between two parties , buyer and seller to buy or sell something at a
later date at price agreed upon today.
C) Option contract
There are two types of option contract.
1.Calls
2.put
D) swap contract
Swaps are private agreement between two parties to exchange cashflows in future according to a
prearranged formula.

- what is share and its types

The capital of a company is divided into shares, each share is a unit of ownership of a company, share
holder to an equal claim on the companies profit and loss.
There are two types of shares.
A) equity shares
equity shares give their holder the power to share the profit in the company as well as a vote right,
and equity share holders are actual owners of the company.
B) preference shares
Preference shares give their holders only dividends, which are fixed and giving no voting rights ,the
owners of the preference shares will be the first one to get their money back.

-What is Stock exchange

Where buyer and seller come together and exchange security against cash.
Stock exchanges allow companies to raise capital and investors to make informed decisions using real-
time price information. Exchanges can be a physical location or an electronic trading platform. people
are typically familiar with the image of the trading floor, many exchanges now use electronic trading.

- What is NSE ( National stock exchange)

NSE is a leading stock exchange of India, located in Mumbai, NSE was established in 1992 as the first
dematerialized electronic exchange in the country.
NSE was the first exchange in the country to provide a modern, fully automated screen-based
electronic trading system which offered easy trading facilities to investors spread across the length and
breadth of the country.
Vikram Limaye is Managing Director & Chief Executive Officer of NSE.

- What IS BSE (Bombay stock exchange)

BSE is an Indian stock exchange located in Mumbai, BSE was established in 1875,
BSE was India's first stock exchange.it is Asia's oldest stock exchange.
The BSE is the world's 10th largest stock exchange with an overall market capitalization of more than
US$2.2 trillion on as of April 2018.

- SEBI (Security Exchange board of India)

Who control the share market and protect the investor, SEBI is the regulator of Indian stock exchange
.established in 1988 and located in Mumbai.
Role of SEBI-
monitor the activities of the stock exchange.
safeguard the rights of the investors
define the code of conduct for the brokers, underwriters, and other intermediaries.
Power Of SEBI-
checks price manipulation
bans Insider trading·
Stop unfair and fraud trade practices
promotes a fair code of conduct in the security market
takes efforts to educate the investors regarding ways to evaluate the investment options better

- golden rules of accounting.

personal account- Debit the receiver credit the giver.
Real account- Debit what comes in credit what goes out.
Nominal account- Debit all expenses or loss and credit all gains or profit.

- What is NAV
NAV is a mutual fund price per share, the per share amount of the fund is calculated by dividing the
total value of all securities in its portfolio less any liabilities by the number of fund shares outstanding.
What is Nasdaq?
Nasdaq is a global electronic marketplace for buying and selling securities. Nasdaq was created by the
National Association of Securities Dealers (NASD) to enable investors to trade securities on a
computerized, speedy and transparent system, and commenced operations on February 8, 1971.
The term, “Nasdaq” is also used to refer to the Nasdaq Composite, an index of more than 3,000 Stocks
listed on the Nasdaq exchange that includes the world’s foremost technology and biotech giants such
as Apple, Google, Microsoft, Oracle, Amazon, and Intel.

-What is dividend
A dividend is a distribution of profit by a corporation to its share holder, it is usually a part of profit
that the compony shares with its share holder, dividend can be issued in various forms such as cash
payment, stock, any other form.
Record date - on which date shareholders name should be in companies record.
Ex date- before this date share holders should buy security before day of record day ex date will be
there.

-What is hedge funds

Hedge fund is an alternative investment that is designed to protect investment portfolios from market
uncertainty while generating positive return in both up and down market.
Hedge funds were originally structured to hold both long and short stocks. The positions were
therefore "hedged" to reduce risk, so the investors made money regardless of whether the market
increased or decreased. The name stuck and the term expanded to include all sorts of pooled capital
arrangements.
These funds are limited to wealthier investors because they come with higher fees paid to their
managers and they nonetheless involve more risk than other types of investments.

- what is mutual fund

Who pulls money from small investors and investing large scale industries is called as mutual fund.
Mutual fund is a kind of investment that uses money from many investors to invest in stock , bonds ,
and other types of investments.
Mutual funds are usually open ended means that new investors can join into the fund any time.
3 types of mutual fund
Open end funds
Closed end funds
Unit investment funds
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.
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
Debentures-
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 halfyearly.
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
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?
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.
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.
MOA
A Memorandum of Association (MoA) represents the charter of the company. It is a legal document
prepared during a company's formation and registration process. It defines the company's relationship
with shareholders and specifies the objectives for which the company has been formed. The company
can undertake only those activities mentioned in the Memorandum of Association.
AOA
Articles of association form a document that specifies the regulations for a company's operations and
defines the company's purpose. The document lays out how tasks are to be accomplished within the
organization, including the process for appointing directors and the handling of financial records.
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.