Stock market

SPA The Financial Advisors Stock Market
1
Training Report
On
“Stock Market”
Commenced at SPA The Financial Advisors Chandigarh
Submitted to Punjab Technical University, jalandhar
In fulfillment of the requirement for the degree of
MASTER OF BUSINESS ADMINISTRATION
(2014- 2016)
Under The Supervision of Submitted By:-
Mr. Pankaj Garg Labh Singh
Roll No 1404737
BHAI GURDAS INSTITUTe of engineering &technology (SANGRUR)

2
Acknowledgement
It gives me tremendous pleasure in acknowledging the valuable assistance
extended to me by various personalities in the successful completion of this
report.
“First of all I am thankful to God who gave me the opportunity of doing M.B.A”
I would like to express my heartiest gratitude towards Mr. Pankaj Garg. Words are
insufficient to express appreciation for the really acknowledging suggestions,
invaluable and continue motivation provided by Mr. Pankaj Garg. I am grateful
thankful to the staff members in SPA The Financial Advisors from whom, I learn a
lot in the process of my training. My respect and heartiest thanks goes to my
parents for their co- operation, tremendous support and selfless sacrifices. Their
sacrifices and suffering were the inspiring force in my path for study. Finally
thanks to everybody else who in one way or the other was involved in the making
of this report possible.
Project Guide Labh Singh
Roll no.1404737
Mr. Pankaj Garg

3
Declaration
In the Bhai Gurdas Institute of Engg &Technology, Sangrur every student is
supposed to undergo training in pursuance of completion of the degee of M.B.A.
in industrial or commercial organization. The present report is the result of my
training in SPA The Financial Advisors, Chandigarh
My report is based on insurance. The study was made at the work place of SPA
The Financial Advisors, Chandigarh and this report is may original and not
submitted for any other degree diploma fellowship or other similar title.
Signature of Student
This is to certify that the above statement made by the candidate is correct to the
best of my /our knowledge.
Signatureof Guide/Supervisor

4
Preface
We cannot achieve anything worthwhile in any field of knowledge from the book
alone, in order to achieve practical, positive and concrete result, the class room
needs to be effectively applied to the to the realities of the situation existing
outside the class room. Theatrical knowledge is useless without practical
knowledge.
For management careers, it is very important to develope managerial skills. In
order to achieve positive and concrete results, along with theoretical concepts,
the exposure of real life situation existing in a corporate world is very much
needed. To fulfill this need, this type of practical training is required.
I underwent the M.B.A. training in SPA THE Financial Advisors, Chandigarh. I got
great opportunity to view the overall working of the organization.

5
Table of contents
Sr.
no
Title Name Page no.
1 Introduction to Topic 6-10
2 Introduction to Company 11-17
3 Role of Depository in Stock Exchange 18-20
4 SEBI 21-27
5 NSE 27-31
6 BSE 32-36
7 SENSEX 36-37
8 Nifty 37-38
9 Demat Account and broker and jobber 38-40
10 Research Methodology 44-46
11 Limitations 46-47
12 Data Analysis and Interpretation 47-55
13 Conclusion 56
14 Bibliography 57
15 Annexure 58-59

6
INTRODUCTION OF STOCK MARKET
Stock market is one important constituent of capital market. Stock market is an
organized market for the purchase and sell of industrial and financial securities. It
is convenient place where trading in securities is conducted in systematic manner
that is as per certain rules and regulations. This market is also known as stock
exchange or secondary market. The term "secondary market" is also used to refer
to the market for any used goods or assets, or an alternative use for an existing
product or asset where the customer base is the second market (for example, corn
has been traditionally used primarily for food production and feedstock, but a
"second" or "third" market has developed for use in ethanol production).
INTRODUCTION OF STOCK MARKET

7
Definition of Stock market
Stock exchange is the market places where securities that have been listed
thereon may be bought and sold for either investment or speculation. Stock
exchanges allow trading in securities both to the genuine investor and speculator.
Stock Exchanges are privately organized markets which are use to facilitate
trading in securities. As per this definition, the stock exchanges are the organized
place where securities are purchase and sold.

8
HISTORY OF STOCK MARKET
Established in 1875, the Bombay Stock Exchange is Asia's first stock exchange .In
12th century France the courtesies were concerned with managing and regulating
the debts of agricultural communities on behalf of the banks. Because these men
also traded with debts, they could be called the first brokers. A common
misbelieve is that in late 13th century Bruges commodity traders gathered inside
the house of a man called Van der Beurze, and in 1409 they became the "Brugse
Beurse", institutionalizing what had been, until then, an informal meeting, but
actually, the family Van der Beurze had a building in Antwerp where those
gatherings occurred; the Van der Beurze had Antwerp, as most of the merchants
of that period, as their primary place for trading. The idea quickly spread around
Flanders and neighboring counties and "bruges” soon opened in Ghent and
Rotterdam.
In the middle of the 13th century, Venetian bankers began to trade in government
securities. In 1351 the Venetian government outlawed spreading rumors intended
to lower the price of government funds. Bankers in Pisa, Verona, Genoa and
Florence also began trading in government securities during the 14th century. This
was only possible because these were independent city states not ruled by a duke
but a council of influential citizens. Italian companies were also the first to issue
shares. Companies in England and the Low Countries followed in the 16th century.
The Dutch East India Company (founded in 1602) was the first joint-stock
company to get a fixed capital stock and as a result, continuous trade in company
stock occurred on the Amsterdam Exchange. Soon there after a lively trade in

9
various derivatives, among which options and repose, emerged on the Amsterdam
market
FEATURES OF STOCK EXCHANGE
Characteristics or features of stock exchange are:-
Market for securities:Stock exchangeis a market, wheresecurities of corporate
bodies, governmentand semi-governmentbodies arebought and sold.
Deals insecondhand securities: Itdeals with shares, debentures bonds and such
securities already issued by the companies. In shortit deals with existing or
second hand securities and hence it is called secondary market.
Regulates trade insecurities: Stock exchangedoes not buy or sell any securities
on its own account. Itmerely provides the necessary infrastructureand facilities
for trade in securities to its members and brokers who tradein securities. It
regulates the trade activities so as to ensurefree and fair trade
Allows dealings only inlistedsecurities: In fact, stock exchanges maintain an
official list of securities that could be purchased and sold on its floor. Securities
which do not figure in the official list of stock exchange are called unlisted
securities. Such unlisted securities cannot be traded in the stock exchange.
Transactions effectedonly throughmembers: Allthe transactions in securities at
the stock exchange are affected only through its authorized brokers and
members. Outsiders or direct investors arenot allowed to enter in the trading

10
circles of the stock exchange. Investors haveto buy or sell the securities at the
stock exchange through the authorized brokers only.
Associationof persons: A stock exchange is an association of persons or body of
individuals which may be registered or unregistered.
RecognitionfromCentral Government: Stock exchangeis an organized market. It
requires recognition fromthe Central Government.
Working as per rules: Buying and selling transactions in securities at the stock
exchange are governed by the rules and regulations of stock exchange as well as
SEBI Guidelines. No deviation fromthe rules and guidelines is allowed in any case.
Specific location: Stock exchange is a particular market place where authorized
brokers cometogether daily (i.e. on working days) on the floor of marketcalled
trading circles and conduct trading activities. The prices of different securities
traded are shown on electronic boards. After the working hours market is closed.
All the working of stock exchanges is conducted and controlled through
computers and electronic system.
Financial Barometers: Stock exchanges arethe financial barometers and
development indicators of national economy of the country. Industrial growth
and stability is reflected in the index of stock exchange.

11
SPA
The Financial Advisors
Company Profile

12
SPA Group was promoted by a team of finance professionals in
1995 with an objective to provide value added financial services.
Initially, the Group focused as a niche financial solutions provider
in corporate finance and wealth management to Indian companies
and high net worth individuals. In January 2000, the Group
expanded its operations and the range of services. Today, SPA
provides services for securities broking, merchant banking, wealth
management, financial advisory, corporate finance, risk
management and insurance broking.
SPA is being managed by its promoters along with a young and
dynamic team of over 500+ professionals with rich experience, in
their respective fields. The Group has established itself as one of
India’s leading financial advisory house, offering various financial
solutions to its Institutional, corporate and individual clients.
Customer centric approach of SPA’s dedicated professional team
has helped carve a niche for itself in financial services arena and
won confidence of its clients. Clients of SPA are from a wide
spectrum and comprise of Banks and other financial institutions,
Mutual funds, Insurance companies, foreign institutional investors,
public sector undertakings and government departments, private
corporate, trusts and individuals.

13
Vision
SPA believes in attaining customer satisfaction, on continuing
basis, by providing highest standard of financial services in India.
The philosophy at SPA is to provide services to clients after
assessment of their profile, needs and risk-appetite. The basic work
theme at SPA is:
- Dedicated, competent and honest team of professionals
- Customer centric work environment
- Insight of customers’ perspectives
- Strong research base
- Clear understanding of applicable laws
- Consistency and passion to excel
- Technology savvy
PROMOTERS
Mr. Kamal Somani, FCA, is a senior finance professional with over
30 years of experience in investment banking, securities broking
and corporate finance. His vast experience and vision has enabled
the Group to establish itself as a respected financial services
provider in the country. He looks after the overall grou p strategies
and leads securities broking, investment advisory and investment
banking activities of the Group.
Mr. Sandeep Parwal, B.Com (Hons), FCA, has over 24 years of
experience in various aspects of financial services. He handles
investment advisory, insurance broking and merchant banking
activities of the Group. His expertise in providing customized
innovative solutions with unmatched speed provides a distinctive
edge to the Group's capability.

14
Services
Merchant banking
SPA Capital Advisors Limited is engaged in private placement
of debt instruments, structuring of the various financial products
as per the requirements of the borrowers along with various other
pre-issue and post issue services.
The Company has made notable and considerable progress in a
short span in the debt-oriented merchant banking activities by
successful placement of various debt primary issues. This is also
reflected through the ranking by Prime Database, which has
ranked the Group amongst the top 10 service providers in this
segment. The Company was able to achieve above ranks on the
basis of its performance in just two financial years since it
commenced investment & merchant banking activities.
Since the commencement of merchant banking services, the
Company has syndicated funds for various Public Sector
Undertakings (PSUs), Designated Financial Institutions(DFIs),
Banks and several State Level Undertakings (SLUs).
The Company for its Merchant & Investment Banking activities has
found patronage as an Arranger with various central public sector
undertakings like HUDCO, NTC, ITI, MECON, IISCO SAIL, REC,
KRCL, public sector banks and financial institutions. Also the
Company has had privilege to provide its services to various state
level undertakings of Andhra Pradesh, Karnataka, Kerala, Tamil
Nadu, West Bengal, Punjab, Haryana, Himachal Pradesh, Jammu &
Kashmir, Maharashtra, Gujarat and Rajasthan. In the private
sector, the Company has provided its services to various domestic
and MNC corporate.
The achievements corroborate our untiring and sincere efforts
towards building and preserving mutually rewarding and
sustainable relationships with our clients and giving them our
value added services with meaningful performance.

15
Now, the Company has started providing Equity Oriented Merchant
banking services to its customers on strength of its research based
structuring capabilities and strong distribution network. Presently,
the Company is providing services for private placement of
equities, public issues and right issues.
Mutual Funds
The SPA Group, on strength of its research based customer
centric approach and impeccable servicing, is recognized as one
of the leading financial advisory service providers in the country.
SPA Capital Services Ltd., the flagship company of the group
provides investment advisory services. The company is engaged
in advisory and distribution services of mutual funds and is
ranked amongst top 10 intermediaries in the country. The
Company provides customized solutions to the requirements of
High Net worth Individuals and Corporate clients. Our strength
lies in our ability to advice on investment strategies and
structures develop innovative products and distribute amongst a
wide network of investors across the country. We have constantly
endeavored to develop new instruments, tailor made to the
requirements of our clients, enabling them to earn efficient post
tax returns in accordance with their specific risk, return and
maturity profiles. The company also has a distribution network of
200 sub-brokers across India being serviced by its eight
branches.
The company is currently having Asset under Management of over
Rs. 22,000crore with above 1lac satisfied customers.

16
Additionally, the company provides advisory services for alternate
investment options like portfolio management services in equity,
debt and commodities besides investment in venture capital
funds.
Insurance
SPA Insurance Broking Services Ltd is the insurance broking
company of the group providing life and general insurance
advisory services.
 Life insurance
 General insurance
Securities Broking
SPA Securities Ltd. is registered member of NSE-WDM segment,
Capital Market segment and Futures and Options segment. The
company is also a member of The Stock Exchange, Mumbai. SPA
Comtrade Pvt. Ltd. is the commodities broking company of the
group and is a member of NCDEX and MCX. The Company has
dedicated teams operating from a state of the art dealing room in
Mumbai for equity, debt and derivatives broking supported by a
strong in-house research team.
Clients

17

18
ROLE OF DEPOSITORY IN STOCK EXCHANGE
The Depository performs its functions through a network of Depository
Participants (DPs) who interact with the Clearing Members and Investor. The
Depository carries out following functions through its participants:-
 Enabling the surrender and withdrawal of securities through the process of
demat and remat to and from the depository system,
 Maintaining investors' holdings in the electronic form through computers,
 Effecting settlement of securities traded on the stock exchanges.
 Carrying out settlement of "off market trades" (i.e. trades not done on the
stock exchanges)
 Advising periodically to the Share Registrar / Issuer about the beneficial
owners of the securities.
NATIONAL SECURITIES DEPOSITORY LIMITED (NSDL)
National Securities Depository Limited (NSDL) is an Indian central securities
depository based in Mumbai. Itwas established on 8 November 1996 as the first
electronic securities depository in India with national coveragebased on a
suggestion by a national institution responsiblefor the economic development of
India .
Although India had a vibrant capital market which is more than a century old, the
paper-based settlement of trades caused substantialproblems like bad delivery
and delayed transfer of title till recently. The enactment of Depositories Act in
August1996 paved the way for establishment of NSDL, the first depository in

19
India. This depository promoted by institutions of national statureresponsiblefor
economic development of the country
Using innovative and flexible technology systems, NSDL worksto supportthe
investors and brokers in the capital marketof the country. NSDL aims at ensuring
the safety and soundness of Indian marketplaces by developing settlement
solutions that increase efficiency, minimise risk and reduce costs. At NSDL, we
play a quiet but central role in developing products and services that will continue
to nurture the growing needs of the financial services industry.
NSDL is committed to provide best service to investors and recognises that
quantitative progress is ineffective
Towards this objective, NSDL has launched Certification Programme on
depository. This programme helps the candidate to understand and assimilate the
procedures to be followed in conducting various transactions in the NSDL
depository system. NSDL has made it mandatory for all branches of Depository
Participants (DPs) to have atleast one person qualified in the Certification
Programme. For the benefit of the staff of the DPs, NSDL conducts training
programmes which cover all aspects of depository services.
NSDL is using the National Stock Exchange of India Limited's (NSEIL) Certification
in Financial Markets (NCFM) infrastructure for conducting the "NSDL-Depository
Operations Module". NSE's Certification in Financial Markets (NCFM) is an on-line
testing system. The entire process of testing, assessing and scores reporting in the
NCFM is fully automated. The test is conducted on weekdays at all six NSE offices.
(At Mumbai, tests are conducted on Saturdays also). In addition, the tests are

20
conducted on any day at any location in India through Internet if there is
adequate demand for the same.
CENTRAL DEPOSITORY SERVICES LIMITED (CDSL)
A Depository facilitates holding of securities in the electronic form and enables
securities transactions to be processed by book entry. The Depository Participant
(DP), who as an agent of the depository, offers depository services to investors.
According to SEBI guidelines, financial institutions, banks, custodians,
stockbrokers, etc. are eligible to act as DPs. The investor who is known as
beneficial owner (BO) has to open a demat account through any DP for
dematerialisation of his holdings and transferring securities.
The balances in the investors account recorded and maintained with CDSL can be
obtained through the DP. The DP is required to provide the investor, at regular
intervals, a statement of account which gives the details of the securities holdings
and transactions. The depository system has effectively eliminated paper-based
certificates which were prone to be fake, forged, counterfeit resulting in bad
deliveries. CDSL offers an efficient and instantaneous transfer of securities.
CDSL was promoted by BSE Ltd. jointly with leading banks such as State Bank of
India, Bank of India, Bank of Baroda, HDFC Bank, Standard Chartered Bank and
Union Bank of India.
CDSL was set up with the objective of providing convenient, dependable and
secure depository services at affordable cost to all market participants. Some of
the important milestones of CDSL system are:

21
CDSL received the certificate of commencement of business from SEBI in
February, 1999
Honorableunion finance minister, ShriYashwant Sinha flagged off the operations
of CDSL on July 15, 1996
Settlement of trades in the demat mode through BOI shareholding limited, the
clearing house BSE, started in July 1996.
SEBI’s ROLE IN STOCK EXCHANGE
Securities Exchange Board of India (SEBI) was set up in 1988 to regulate the
functions of securities market. SEBI promotes orderly and healthy development in
the stock market but initially SEBI was not able to exercise complete control over
the stock market transaction.

22
REASONS OF ESTABLISHMENT OF SEBI:
With the growth in the dealings of stock markets, lot of malpractice also started in
stock markets such as price rigging, ‘unofficial premium on new issue, and delay
in delivery of shares, violation of rules and regulations of stock exchange and
listing requirements. Due to these malpractices the customers started losing
confidence and faith in the stock exchange. So government of India decided to set
up an agency or regulatory body known as Securities Exchange Board of India
(SEBI).
PURPOSE OF SEBI
SEBI was set up with the main purpose of keeping a check on malpractices and
protect the interest of investors. It was set up to meet the needs of three groups.
1. Issuers:
For issuers it provides a market place in which they can raise finance fairly and
easily.
2. Investors:
For investors it provides protection and supply of accurate and correct information.
3. Intermediaries:
For intermediaries it provides a competitive professional market.
OBJECTIVES OF SEBI

23
The overall objectives of SEBI are to protect the interest of investors and to
promote the development of stock exchange and to regulate the activities of stock
market. The objectives of SEBI are:
1. To regulate the activities of stock exchange.
2. To protect the rights of investors and ensuring safety to their investment.
3. To prevent fraudulent and malpractices by having balance between self
regulation of business and its statutory regulations.
4. To regulate and develop a code of conduct for intermediaries such as brokers,
underwriters, etc.
FUNCTIOS OF SEBI
The SEBI performs functions to meet its objectives. To meet three objectives SEBI
has three important functions. These are:
i. Protective functions
ii. Developmental functions
iii. Regulatory functions.
1. Protective Functions:
These functions are performed by SEBI to protect the interest of investor and
provide safety of investment.
As protective functions SEBI performs following functions:

24
(i) It Checks Price Rigging:
Price rigging refers to manipulating the prices of securities with the main objective
of inflating or depressing the market price of securities. SEBI prohibits such
practice because this can defraud and cheat the investors.
(ii) It Prohibits Insider trading:
Insider is any person connected with the company suchas directors, promoters etc.
These insiders have sensitive information which affects the prices of the securities.
This information is not available to people at large but the insiders get this
privileged information by working inside the company and if they use this
information to make profit, then it is known as insider trading, e.g., the directors of
a company may know that company will issue Bonus shares to its shareholders at
the end of year and they purchase shares from market to make profit with bonus
issue. This is known as insider trading. SEBI keeps a strict check when insiders are
buying securities of the company and takes strict action on insider trading.
(iii) SEBI prohibits fraudulent and Unfair Trade Practices:
SEBI does not allow the companies to make misleading statements which are
likely to induce the sale or purchase of securities by any other person.
(iv) SEBI undertakes steps to educate investors so that they are able to evaluate the
securities of various companies and select the most profitable securities.
(v) SEBI promotes fair practices and code of conduct in security market by taking
following steps:

25
(a) SEBI has issued guidelines to protect the interest of debenture-holders wherein
companies cannot change terms in midterm.
(b) SEBI is empowered to investigate cases of insider trading and has provisions
for stiff fine and imprisonment.
(c) SEBI has stopped the practice of making preferential allotment of shares
unrelated to market prices.
2. Developmental Functions:
These functions are performed by the SEBI to promote and develop activities in
stock exchange and increase the business in stock exchange. Under developmental
categories following functions are performed by SEBI:
(i) SEBI promotes training of intermediaries of the securities market.
(ii) SEBI tries to promote activities of stock exchange by adopting flexible and
adoptable approach in following way:
(a) SEBI has permitted internet trading through registered stock brokers.
(b) SEBI has made underwriting optional to reduce the cost of issue.
(c) Even initial public offer of primary market is permitted through stock
exchange.
3. Regulatory Functions:
These functions are performed by SEBI to regulate the business in stock exchange.
To regulate the activities of stock exchange following functions are performed:

26
(i) SEBI has framed rules and regulations and a code of conduct to regulate the
intermediaries such as merchant bankers, brokers, underwriters, etc.
(ii) These intermediaries have been brought under the regulatory purview and
private placement has been made more restrictive.
(iii) SEBI registers and regulates the working of stock brokers, sub-brokers, share
transfer agents, trustees, merchant bankers and all those who are associated with
stock exchange in any manner.
(iv) SEBI registers and regulates the working of mutual funds etc.
(v) SEBI regulates takeover of the companies.
(vi) SEBI conducts inquiries and audit of stock exchanges.
SEBI Guidelines for Mutual Funds
1). Mutual fund shall be established in the form of trusts under the Indian Trust Act
and managed by separately formed asset management company.
2). Money market mutual fund would be regulated by the RBI and other mutual
funds would be regulated by SEBI.
3). Fifty per cent members of the board of AMC must be independent directors.
4). The directors should have at least 10 years experience in the field of portfolio
management, financial administration, etc.
5). The AMC should have a minimum net worth of rs 10 crore.

27
6) An AMC can’t act as the AMC for another mutual fund.
7). The minimum amount to be raised with each closed-end scheme should be rs 20
crore and for the open-ended scheme rs 50 crore.
8). Each scheme of the mutual fund is registered with SEBI before it is floated in
the market.
9). For each scheme, there should be a separate and responsible fund manager.
10). AMC’s are also allowed to do other fund based business such as providing
investment management services, other mutual funds, venture capital funds, and
insurance companies.
11). Closed-end schemes should not be kept open for subscription for more than
45days.
12). If the minimum amount or 60% of the target amount is not raised, the entire
subscription has to be returned to the investors.
National Stock Exchange

28
CEO: Chitra Ramkrishna
Founded: 1992,Mumbai
Headquarters: Mumbai
The National Stock Exchange of India Limited (NSE) is the leading stock
exchange of India, located in Mumbai. NSE was established in 1992 as the first
demutualized 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 facility to the investors spread across the length
and breadth of the country.

29
Origins
The National Stock Exchange of India was set up by promoted by leading financial
institutions at the behest of the Governmentof India, it was incorporated in
November 1992 as a tax-paying company. In April 1993, itwas recognized as a
stock exchange under the Securities Contracts (Regulation) Act, 1956. NSE
commenced operations in the Wholesale Debt Market (WDM) segmentin June
1994. TheCapital market (Equities) segment of the NSE commenced operations in
November 1994, whileoperations in the Derivatives segment commenced in June
2000.
OBJECTIVES
1. Establishing nationwide trading facilities for all types of securities.
2. Ensuring equal access to investors all-over the country through an
appropriate communication network.
3. Meeting international benchmarks and standards.
4. Enabling shorter settlement cycles and book entry settlements.
MARKETS
Currently, NSE has the following major segments of the capital market:
 Equities
 Indices
 Mutual Funds

30
 Exchange Traded Funds
 Initial Public Offerings
 Security Lending and Borrowing Scheme
 Derivatives
 Equity Derivatives
 Currency Derivatives
 Interest Rate Futures
 Debt
 Retail Debt Market
 Wholesale Debt Market
 Corporate Bonds
Indices
A stock market index is created by selecting a group of stocks that are
representative of the whole market or a specified sector or segment of the
market. An Index is calculated with reference to a base period and a base index
value. An Index is used to give information about the price movements of
products in the financial, commodities or any other markets. Financial indexes are
constructed to measure price movements of stocks, bonds, T-bills and other
forms of investments. Stock market indexes are meant to capture the overall
behavior of equity markets.

31
Trading schedule
Trading takes place on all days of the week except Saturdays & Sundays. The
market timings are as follows:
(1) Pre-open session (Regular)
Order entry & modification Open: 09:00 hrs
Order entry & modification Close: 09:08 hrs
With random closure in last one minute. Pre-open order matching starts
immediately after close of pre-open order entry.
(2) Pre-open Session for IPO and Relist Securities
Order entry & modification Open: 09:00 hrs
Order entry & modification Close: 09:45 hrs
Close of pre-open order entry.
(3) Regular trading session
Normal Market Open: 09:15 hrs
Normal Market Close: 15:30 hrs
Block deal session is held between 09:15 hrs and 09:50 hrs.
(4) The Closing Session is held between 15.40 hrs and 16.00 hrs.
The Exchange may also extend, advance or reduce trading hours when its deems
fit and necessary.

32
BOMBAY STOCK EXCHANGE
Bombay Stock Exchange (BSE), (Bombay Share bazaar) is a stock exchange
located on Dalal Street, Mumbai, Maharashtra, India. It is the 11th largest stock
exchange in the world by market capitalization as on 31 December 2012.
Established in 1875, BSE Ltd. (formerly known as Bombay Stock Exchange Ltd.),
is the India's oldest Stock Exchange, one of Asia's oldest stock exchange and one
of India’s leading exchange groups. Over the past 137 years, BSE has facilitated
the growth of the Indian corporate sector by providing it an efficient capital-raising
platform. Popularly known as BSE, the bourse was established as "The Native
Share & Stock Brokers' Association" in 1875.
BSE is a corporatized and demutualised entity, with a broad shareholder-base
which includes two leading global exchanges, Deutsche Bourse, Fuse and
Singapore Exchange as strategic partners. BSE provides an efficient and
transparent market for trading in equity, debt instruments, derivatives, mutual
funds. It also has a platform for trading in equities of small-and-medium
enterprises (SME). More than 5000 companies are listed on BSE making it world's
No. 1 exchange in terms of listed members. The companies listed on BSE Ltd
command a total market capitalization of USD Trillion 1.32 as of January 2013.
BSE Ltd is world's fifth most active exchange in terms of number of transactions
handled through its electronic trading system. It is also one of the world’s leading
exchanges (3rd largest in December 2012) for Index options trading (Source:
World Federation of Exchanges).
BSE also provides a host of other services to capital market participants including
risk management, clearing, settlement, market data services and education. It has a
global reach with customers around the world and a nation-wide presence. BSE

33
systems and processes are designed to safeguard market integrity, drive the growth
of the Indian capital market and stimulate innovation and competition across all
market segments. BSE is the first exchange in India and second in the world to
obtain an ISO 9001:2000 certifications. It is also the first Exchange in the country
and second in the world to receive Information Security Management System
Standard BS 7799-2-2002 certification for its BSE On-Line trading System
(BOLT).
It operates one of the most respected capital market educational institutes in the
country (the BSE Institute Ltd.). BSE also provides depository services through its
Central Depository Services Limited (CDSL) arm.
BSE’s popular equity index - the S&P BSE SENSEX [Formerly SENSEX] - is
India's most widely tracked stock market benchmark index. It is traded
internationally on the EUREX as well as leading exchanges of the BRCS nations
(Brazil, Russia, China and South Africa). On Tuesday, 19 February 2013 BSE has
entered into Strategic Partnership with S&P DOW JONES INDICES and the
SENSEX has been renamed as "S&P BSE SENSEX".
HISTORY

34
The Phiroze Jeejeebhoy Towers house the Bombay Stock Exchange since 1980.
The Bombay Stock Exchange is the oldest exchange in Asia. It traces its history to
1855, when four Gujarati and one Parsi stockbroker would gather under banyan
trees in front of Mumbai's Town Hall. The location of these meetings changed
many times, as the number of brokers constantly increased. The group eventually
moved to Dalal Street in 1874 and in 1875 became an official organization known
as 'The Native Share & Stock Brokers Association'.
On 31 August 1957, the BSE became the first stock exchange to be recognized by
the Indian Government under the Securities Contracts Regulation Act. In 1980 the
exchange moved to the Phiroze Jeejeebhoy Towers at Dalal Street, Fort area. In
1986, it developed the BSE SENSEX index, giving the BSE a means to measure
overall performance of the exchange. In 2000 the BSE used this index to open its
derivatives market, trading SENSEX futures contracts. The development of
SENSEX options along with equity derivatives followed in 2001 and 2002,
expanding the BSE's trading platform.
Historically an open outcry floor trading exchange, the Bombay Stock Exchange
switched to an electronic trading system in 1995. It took the exchange only fifty
days to make this transition. This automated, screen-based trading platform called
BSE On-line trading (BOLT) had a capacity of 8 million orders per day. The BSE
has also introduced the world's first centralized exchange-based internet trading
system, BSEWEBx.co.in to enable investors anywhere in the world to trade on the
BSE platform

35
VISION AND SECURITY OF BSE
The vision of the Bombay Stock Exchange is "Emerge as the premier Indian stock
exchange by establishing global benchmarks." This means the exchange is
thinking big in terms of customer service and trading activity. The market has not
only experienced explosive growth in terms of trading volume, but also in terms of
overall return to investors.
The BSE has averaged a 27.2% annual return when measured by Sensex, the most
popular stock index in India, over the last 15 years. Other important indices
originating from the Bombay exchange include the BSE 100, BSE 500, BSEPSU,
BSEMIDCAP, BSESMLCAP, and BSEBANKEX.
Protecting the interests of investors dealing in securities is one of the primary
objectives of the exchange, which provides this additional security by ensuring
remedy of grievances, whether this is against member companies or member /
brokers. Overall
Guidelines for the marketplace are established by the Securities and Exchange
Board of India (SEBI).
Trading Time in BSE
BSE’s normal trading session are from 9:00 am to 3:30 pm on all days of the week
expect Saturdays, Sundays and holidays declared by the Exchange in advance
Features of BSE
 It is the oldest and the largest stock exchange in Asia.

36
 It is the fifth largest stock exchange in the world.
 It is first stock exchange that introduced Equity derivatives in India.
 It is the earliest to have the special facility for financial training.
 BSE Online Trading System (BOLT) used by BSE is one of the few stock
trading systems in world that manages hybrid/mixed mode of treading.
Objective of BSE
 To protect interest of the investors by giving full disclosures.
 To provide liquidity to securities.
 To mobilize the savings in order to make economic development.
SENSEX
Sensex 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 prices of major companies of the BSE
(Bombay stock exchange)
HISTORY OF BSE SENSEX
SENSEX, first compiled in 1986, was calculated on a ‘Market Capitalization-
Weighted’ methodology of 30 component stocks representing large, well-
established and financially sound companies across key sectors. The base year of
SENSEX was taken as 1978-79. SENSEX today is widely reported in both
domestic and international markets through print as well as electronic media. It is

37
scientifically designed and is based on globally accepted construction and review
methodology. Since September 1, 2003, SENSEX is being calculated on a free-
float market capitalization methodology. The ‘free-float market capitalization-
weighted’ methodology is a widely followed index construction methodology on
which majority of global equity indices are based; all major index providers like
MSCI, FTSE, STOXX, S&P and Dow Jones use the free-float methodology.
The growth of the equity market in India has been phenomenal in the present
decade. Right from early nineties, the stock market witnessed heightened activity
in terms of various bull and bear runs. In the late nineties, the Indian market
witnessed a huge frenzy in the ‘TMT’ sectors. More recently, real estate caught the
fancy of the investors. SENSEX has captured all these happenings in the most
judicious manner. One can identify the booms and busts of the Indian equity
market through SENSEX. As the oldest index in the country, it provides the time
series data over a fairly long period of time (from 1979 onwards). Small wonder,
the SENSEX has become one of the most prominent brands in the country.
HISTORY OF NIFTY
S&P CNX Nifty is a well diversified 50 stock index accounting for 21 sectors of
the economy. It is used for a variety of purposes such as benchmarking fund
portfolios, index based derivatives and index funds.
S&P CNX Nifty is owned and managed by India Index Services and Products Ltd.
(IISL), which is a joint venture between NSE and CRISIL. IISL is India’s first
specialized company focused upon the index as a core product. IISL has a

38
Marketing and Licensing Agreement with Standard & Poor’s (S&P), who are
world leaders in index services.
1. Traded value for the last six months of all Nifty stocks is approximately
44.89% of the traded value of all stocks on the NSE
2. Nifty stocks representabout 58.64% of the total market capitalization as on
March 31, 2008.
3. Impact cost of the S&P CNX Nifty for a portfolio size of Rs.2crore is 0.15%
4. S&P CNX Nifty is professionally maintained and is ideal for derivatives
trading
DEMAT ACCOUNT
Demat Account, a short form of saying Dematerialized Account is a type of
banking account which dematerializes the paper based physical shares. It can be
considered as another form of a personal account where people keep shares
instead of money and cheque. A savings account holds your money electronically
and a demat account holds your stocks electronically. A demat account can be
opened with no balance of shares.
As per Securities and Exchange Board of India rules, one can purchase shares up
to 500 in physical form. But it mandates demat account for share trading above
500. Demat account allows you to buy or sell and transact shares in safe, secure
and convenient way without making any delay and paperwork.
HOW TO OPEN A DEMAT ACCOUNT?

39
Opening a Demat account is as simple as a bank account opening. You can open a
Demat account with any registered depository participant (DP). The first step of
opening an account is to fill up an account opening form. Standard Agreements
are to be signed by the Client and the DP, which details the rights and obligations
of both parties. The charges for account opening, annual account maintenance
fees and transaction charges vary between DPs. The client will be provided with
an account number called BO ID (Beneficiary Owner Identification Number).
WHO CAN OPEN A DEMAT ACCOUNT?
Any individual or corporatecan open a demat account. It is possible to open more
than one demats account in identical names. A demat account can be opened in
more than one names but can be operated only for dematerialization of shares
held in the same combination. No shares can be credited by purchase or
transferred from any other account. Once a demat account has been started, it is
not possible to change the account name. In such case a new demat account
needs to be opened in the changed name, securities are to be transferred from
the old account to the new account and the old account needs to be closed. Even
though a power of Attorney holder cannot open a demat account, it is permissible
to be operated by both the client and the POA holder.

40
The different categories of accounts that can be opened under an individual
demat account are Ordinary Resident, Hindu United Family (HUF), Non Resident
Indian - Reparable, Non Resident Indian- Non Reparable, Margin, Promoter,
Others. The different categories of accounts that can be opened under a
corporate demat account are Body Corporate, Bank, Financial Institution, Foreign
Institutional Investor, Overseas Corporate Body & Others.
The documents required for opening a demat account is PAN Card, Voter's ID
Card, Applicant's Passport, Ration Card, Driver's License, Photo Credit Card,
Employees ID Card, Bank Attestation, IT Returns, Electricity/ Landline Phone Bills,
a signed passport size photograph etc. All the documents listed above are not
mandatory. PAN card is a must for opening a demat account
BENEFITS:
 Demat account holders need not pay stamp duty posted in case of physical
shares.
 It enables quick ownership of securities resulting in increased liquidity and
makes the processes like pledging and hypothecation of shares much
easier.
 Demat account holds portfolio of shares in electronic form and obviate the
need to hold shares in physical form.
 This account is very safe, secure and convenient for trading and
investments.
 This makes speed-e transactions in stock trading.

41
 Demat account eliminates the risk of loss, forged transfer, bad delivery and
fake certificates in the share transaction.
 Nomination facility is available.
BROKER AND JOBBER
 BROKER: He is one act as an intermediary on behalf of others. A broker in a
stock exchange is a commission agent who transacts business in securities
on behalf of non members.
 JOBBER: He is not allowed to deal with the public directly .He deals with
brokers who are engaged with the investors. Thus, the securities are
bought by the jobber from members and sells to members who are
operating on the stock exchange as broker.
SPECULATION AND SPECULATOR
 SPECULATION: It is the transaction of members to buy or sell securities on
stock exchange with a view to make profits to anticipated raise or fall in
price of securities.
 SPECULATOR: The dealer in stock exchange who indulge in speculation are
called speculator. They do not take delivery of securities purchased or sold
by them, but only pay or rescue the difference between the purchase price
and sale price. The different types of speculators are

42
 BULL
 BEAR
BULL MARKET {TEJIWALA}
He is speculator who expects the future raise in price of securities he buys the
securities to sell them at future date at the higher price.
He is called as bull because his activities resembles as a bull, as the bull tends to
throw its victims up in the air through its horns. In simple the bull speculator tries
to raise the price of securities by placing a big purchase orders.
BEAR MARKET {MANDIWALA}

43
He is speculator who expects futurefall in prices; he does an agreement to sell
securities at futuredate at the present marketrate.
He is called as bear because his altitude resembles with bear, as the bear tends to
stamp its victims down to earth through its paws. In simplethe bear speculator
forces of prices of securities to fall through his activities.
Largest stock exchanges IN WORLD
1. LONDONSTOCK EXCHANGE
2. NEW YORK STOCK EXCHANGE
3. SHANHAI STOCK EXCHANGE

44
4. AUSTRALIA STOCK EXCHANGE
5. TOKYO STOCK EXCHANGE
6. HONG KONG STOCK EXCHANGE
7. TORONTO STOCK EXCHANGE
8. DEUTSCHEBORSE
9. BM&F BOVESPA
10.NASDAQ OMX STOCK EXCHANGE
IN INDIA
1. NATIONAL STOCK EXCHANGE
2. BOMBAY STOCK EXCHANGE
3. CALCUTTA STOCK EXCHANGE
4. COCHINSTOCK EXCHANGE
5. MULTI COMMODITYEXCHANGE
6. DERIVATIVES EXCHANGE
7. OTC EXCHANGE
8. PUNE STOCK EXCHANGE
9. INTERCONNECTS EXCHANGE
Research Methodology

45
Title of The Study:
"Study of stock market"
Durationof The Project:45Days
Objective Study:
To know the basic terminology of stock market
To makethe investor awere about the factors which may affect their
investment
To get the knowledgeof other markets such as a commodity marketand
derivatives
To know the ups and downs of stock market of last two years
To forecastor predict the futuretrend of stock market with helps in
investment
To know the effect of these fluctuation on the Indian economy
SOURCEOF THE DATA:-
The researcher had collected both primary & secondary data for the research.
Primary
For collecting the primary data, the questionnairemethod was employed. Each
respondentwas given a questionnaireand they answered it.

46
Secondary
For secondary data the researcher depends on various company records, websites
and journals etc.
Limitations:-
Limitations are the limiting lines that restrictthe work in someway. in this
research study also their weresome limiting factors, someof them are under
data collection
1. data collection
the most important constraint in this study was data collection as secondary data
was selected for study. secondary data means data that are already available i.e
they refer to the data which have already been collected and analyzed by
someone else
2. Time period
Time period was one of the main factor as only 1 months as allotted and the topic
covered in research has a wide scope so it was not possible to cover it in a short
span of time
3. Raliablity
the data collected in research work was secondary data so this puts a question
mark on the reliability of this data which is very important factor of the study as
conclusion has been derived from this can read data only

47
4. Accuracy
The factor and finding of the data cannot be accepted as accurate to someone
extent as firstly, secondly data was collected. Secondly, for doing descriptive
research time needed to be more because in short period you cannot cover each
point accurately.
Data Analysis and Interpretation
Data Interpretation- A questionnaire was prepared for the purpose at getting
feedback from participators Trader of Stock or Derivative Instruments regarding
"Stock Market".50( trader of stock and derivative instrument) are selected from
different area and were distributing the questionnaire from the purpose of study.
The percentage is of the people opinion analyzed and expressed in d form of
chart and have been placed in the next few pages
Analyzed and interpreted the data
Q1. tell us something about your overall stock market research experience
Chosen in best
I have been trading for two decades and the markets are a lot more
Complex now than they were just even 3 years ago. I would not advise trading if
you don't have full time and attention, the right Technology, understand the basic
of fundamental and technical analysis, a basic education in market history,
market psychology, a ton of experience with depth of understanding on how
much it's really work at the capital to play this big game

48
Q2.Do you think stock market research is essential for investing your money to
earn high returns ?
S. No Opinion No. of Respondent Percentage
1 Yes 75% 75
2 No 75% 25
75% people said that stock market research is essential for investing your money
to earn high returns and 25% people said in against
75%
25%
Sales
Yes No

49
Q3. how long haveyou been indulged into the stock market research and discuss
this business?
S.NO Opinion No. of Respondent Percentage
1 More than a year 60 60%
2 More than three year 20 20%
3 More than five Years 10 10%
4 More than seven Years 05 05%
5 More than this 05 05%
60% age people in and Indulged into the stock market research and this business
more than a year
more than a year
more than a year
more than a year
more than a year
60%
20%
10%
5%
5%
Indulged in Stock Market
More than a Year
More than three Year
More than five Years
More than seven Years
More than this

50
Q4. Which of the following mentioned factors play an important role while you
finalize a stock company ?
1 Overall reputation 45 45%
2 Offered stock market $ conditions 25 25%
3 Capability of affecting investments 20 20%
4 Current stock quotes 05 05%
5 Other factors 05 05%
45%
25%
20%
5%
5%
Factors play an important role
Overall reputation Offered stock market $ conditions
Capability of affecting investments Current stock quotes
Other factors

51
Q5. you purchasethe shares to:
1 Invest your money wisely 20 20%
2 For long term money investment 23 23%
3 For high end returns 44 44%
4 To invest money regularly 13 13%
20% people said purchasethe shares for Investyour money wisely
23% people said purchasethe shares for long term money investment
44% people said purchasethe shares for high return
13% people said purchasethe shares to Investyour money regularly
20%
23%
44%
13%
Column1
Invest your money wisely For long term money investment
For high end returns To invest money regularly

52
Q6. Which of the following risk factors disturb the stock continuously?
1 Corporate drawn 25 25%
2 Market value fluctuations 40 40%
3 Economic breakdown 35 35%
25% people said Corporatedrawn factors disturb the stock marketcontinuously
40% people said Marketvalue fluctuation factors disturb the stock market
continuously
35% people said Economic breakdown factors disturb the stock market
continuously
25%
40%
35%
Factors disturb the stock market continously
Corporate drawn Market value fluctuations Economic breakdown

53
Q7. Which of the method do you use to conduct a stock market research before
investing money into shares?
1 Internet 30 30%
2 Friend's advise 35 35%
3 News paper 15 15%
4 Television 15 15%
5 Other 10 15%
30% people use the Internetto conducta stock marketresearch before investing
money into shares, 35% peopleuse a friend is advise to conduct a stock market
research beforeinvesting money into shares, 15% people use the Newspaper to
conduct a stock marketresearch before investing money into shares, 15% people
use Television to conduct a stock market research beforeinvesting money into
shares, 10% peopleuse other elements to conducta stock market research
investing money into shares
30%
35%
15%
15%
10%
Sales
Internet Friend's advise News paper Television Other

54
Q8. Do you deal in Derivativeinstruments?
1 Yes 80 80%
2 No 20 20%
80% people deal in Derivatives instruments
20% people not deal in Derivatives instruments
80%
20%
Column1
Yes No

55
Q9. would you like to give a nice to Jackson regarding improvementof trading in
stock market
Suggestion Chosen in best
 Do not overtrade.
 Do not trade on rumors.
 Do not trade in all stocks of one sector.
 It is better to buy the wrong stocks at the right time than to buy the
right stockat the wrong time.
 Trade with the Trends rather than trying to pick tops and bottoms.
 As long as a market is acting right, don't rush to make profits.
 Don't buy something because it is a low priced.

56
CONCLUSION
Working at SPA The Financial Advisors gave me an opportunity to apply my skills
and knowledge, which I had gained previously.
Through this research we can conclude that:
 Stock market fluctuates by external environment.
 Stock market is all about the future of prediction.
 Stock market is very sensitive market.
 It is based on "high risk and high return".
 Comparatively stock market is less risky than the other market and
generates more money for the economy.
 One who have a good knowledge in stock market, may survive in the
market and generate profits or good returns whether the market is
down.
 Investors should not invest on the basis of rumors they must observe
the market conditions or Trends Indian economy and than invest if
they want generate good return.

57
Bibliography
TextBook
Satish Vohra, Monika Bansal, Financial Instruments Services, Thakur Publishers,
Ambala
Web sites
www.spacapital.com
https://en.wikipedia.org/wiki/Stock_market
http://www.slideshare.net/Neerajniaj/stock-market-niaj
http://www.slideshare.net/avinashvarun2/stock-exchange-simple-ppt
https://simple.wikipedia.org/wiki/Stock_market
https://www.schoology.com/.../Understanding20the20Stock20Market1_5...
http://www.moneycontrol.com/
http://www.nseindia.com/
http://www.bseindia.com/
https://en.wikipedia.org/wiki/Bombay_Stock_Exchange

58
Annexure
Questionnaire
Sample Stock Market Research Questionnaire:
Name of participant ...........................
Age ................................
Gender ..............................
Occupation ....................................
Contact number ...................................
Date ...............................
Survey on the Study of Stock Market
Dear Respondent
We are conducting a survey on the Stock Market. you are free and
frank opinion would we very valuable in the conducting the survey.
Please answer the following question with a sign of right appropriate
boxes
Q1.Tell us something about your overall stock market research experience?
..........................
Q2.Do you think stock market research essentials for investing your money to earn high returns?
 Yes ( )
 No ( )

59
Q3. How long have you been and indulged into the stock market research and this business?
 More than a year ( )
 More than three year ( )
 More than five years ( )
 More than seven year ( )
 more than this ( )
Q4. Which of the following the mentioned factors play an important role while you finalize a stock company?
 Overall reputations ( )
 Offered stock market terms and conditions ( )
 Capability of affecting investments ( )
 Current stock quotes ( )
 Other, please write..........................
Q5. You purchasethe shares to
 Investment your money wisely ( )
 For long term money investment ( )
 For high end returns ( )
 To invest money regulatory ( )
Q6.Which of the following risk factors disturb the stock market continuously
 Corporate drawn
 Market value fluctuations
 Economic breakdown
Q7. Which of the method do you use to conduct a stock market research before investing money into shares ?
 Internet
 Friend is advise
 Newspaper
 Televisions
 Other, please mention...........................
Q8.Do you deal in Derivative instruments?
Yes- ( ) No- ( )
Q9.Would you like to give any suggestion regarding improvement of trading in Stock Market ?

Stock market

Recommended

Recommended

More Related Content

What's hot

What's hot (20)

Viewers also liked

Viewers also liked (20)

Similar to Stock market

Similar to Stock market (20)

Recently uploaded

Recently uploaded (20)

Stock market