stock market mechanism and services of hi
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ATraining Project Report on
Stock market mechanism and Services of Anandrathi
in capital market
PREPARED BY
Pawan Kumar
A Report submitted in partial fulfillment of therequirements of MBA
(2008 2010)
Dept. of Commerce & Management
University of Kota, Kota
Under Supervision of:Anand Rathi Financial Services Ltd.Jaipur
Date: 01/12/2009 Submitted to:Dept of Commerce &Mgmt University of Kota,
Kota (Raj.)
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DECLARATION
I hereby declare that this training program entitled Stock marketmechanism and Services of
Anandrathi
in capital market is my work, carried outunder the guidance of my guide Mr.Rajkumar Jain, Mr. Vinod Pandey &other employees of company. This reportneither full nor in part has ever beensubmitted for award of any other degreeof either this university or any otheruniversity.
(Pawan Kumar)
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CERTIFICATE
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ACKNOWLEDGME
NT
I gratefully acknowledge the expert
support and guidance extended to me by
ANANDRATHI and the guidance of Mr.
Rajkumar Jain AND Mr. Vinod pandey and
other employees of company as regards this
project and the subsequent report. There
impartial and enlightened guidance and the
sophisticated communication and the
commodities knowledge has been on immense
help and has been paramount in this project
and report maintaining and further meeting the
requisite standards and the dead lines.
.
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(Pawan Kumar)
COMPANY PROFILE
ORGANIZATION HISTORY
Company Profile
Milestones
AR Core Strengths
Management Team
About AnandRathi
AnandRathi (AR) is a leading full service securitiesfirm providing the entire gamut of financial services.
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The firm, founded in 1994 by Mr. AnandRathi,today has a pan India presence as well as aninternational presence through offices in Dubai andBangkok. AR provides a breadth of financial andadvisory services including wealth management,investment banking, corporate advisory, brokerage &distribution of equities, commodities, mutual fundsand insurance, structured products - all of which aresupported by powerful research teams.
The firm's philosophy is entirely client centric, witha clear focus on providing long term value additionto clients, while maintaining the highest standards ofexcellence, ethics and professionalism. The entire
firm activities are divided across distinct clientgroups: Individuals, Private Clients, Corporate andInstitutions and was recently ranked by Asia Money2006 poll amongst South Asia's top 5 wealthmanagers for the ultra-rich.
In year 2007 Citigroup Venture Capital Internationaljoined the group as a financial partner.
Equity & Derivatives Brokerage
AnandRathi provides end-to-end equity solutions to institutionaland individual investors. Consistent delivery of high quality
advice on individual stocks, sector trends and investment strategyhas established us a competent and reliable research unit acrossthe country.
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Clients can trade through us online on BSE and NSE for bothequities and derivatives. They are supported by dedicated sales &trading teams in our trading desks across the country. Researchand investment ideas can be accessed by clients either throughtheir designated dealers, email, web or SMS
Milestones
1994:
Started activities in consulting and Institutional equity sales withstaff of 15
1995:
Set up a research desk and empanelled with major institutionalinvestors
1997:
Introduced investment banking businesses
Retail brokerage services launched
1999:
Lead managed first IPO and executed first M & A deal
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2001:
Initiated Wealth Management Services
2002:
Retail business expansion recommences with ownership model
2003:
Wealth Management assets cross Rs1500 crores
Insurance broking launched
Launch of Wealth Management services in Dubai
Retail Branch network exceeds 50
2004:
Commodities brokerage and real estate services introduced
Wealth Management assets cross Rs3000crores
Institutional equities business re-launched and senior researchteam put in place
Retail Branch network expands across 100 locations within India
2005:
Real Estate Private Equity Fund Launched
Retail Branch network expands across 200 locations within India
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2006:
AR Middle East, WOS acquires membership of Dubai Gold &
Commodity Exchange (DGCX)
Ranked amongst South Asia's top 5 wealth managers for theultra-rich by Asia Money 2006 poll
Ranked 6th in FY2006 for All India Broker Performance inequity distribution in the High Net worth Individuals (HNI)Category
Ranked 9th in the Retail Category having more than 5% marketshare
Completes its presence in all States across the country withoffices at 300+ locations within India
2007:
Citigroup Venture Capital International picks up 19.9%equity stake
Retail customer base crosses 200 thousand
Establishes presence in over 450 locations
2009:
Started with Currency Derivativeswhich deals
only in USD & INR.
AR Core Strengths
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Breadth of Services
In line with its client-centric philosophy, the firm offers to itsclients the entire spectrum of financial services ranging from
brokerage services in equities and commodities, distribution ofmutual funds, IPOs and insurance products, real estate,investment banking, merger and acquisitions, corporate financeand corporate advisory.
Clients deal with a relationship manager who leveragesand brings together the product specialists from across thefirm to create an optimum solution to the client
Management Team
AR brings together a highly professional core managementteam that comprises of individuals with extensive business aswell as industry experience.
In-Depth Research
Our research expertise is at the core of the value proposition that we offer to our clients. Research teamsacross the firm continuously track various markets and
products. The aim is however common - to go far deeper
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than others, to deliver incisive insights and ideas and beaccountable for results.
Management Team
The senior Management comprises a diverse talentpool that brings together rich experience from acrossindustry as well as financial services.
Mr. Anand Rathi - Group ChairmanChartered AccountantPast President, BSEHeld several Senior Management positions with oneof India's largest industrial groups
Mr. Pradeep Gupta - Vice ChairmanPlus 17 years of experience in Financial Services
Mr. Amit Rathi - Managing DirectorChartered Accountant & MBAPlus 11 years of experience in Financial Services
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Board of Directors| Key Business Heads
Anand Rathi | Founder & Chairman
Prior to establishing his own company, Mr. Rathiheaded Indian Rayon & Industries, as SeniorPresident. He has held a series of responsiblepositions with the Birla group and was alsoinstrumental in setting up of Birla Global Finance. Inhis 40 years of being in the corporate world, Mr.Rathi has held several key positions on variousregulatory and professional boards, including,
President, Bombay Stock Exchange (BSE), andMember, Central Council of Institute of CharteredAccountants (ICAI). As President of BSE, Mr. Rathiplayed a key role in the expansion plan of BOLT,the online trading system of the Exchange andsetting up of the Trade Guarantee Fund. He wasthe moving force behind setting up of the CentralDepository Services (India) Ltd.He is a goldmedalist Chartered Accountant.
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http://www.rathi.com/team.html#bod%23bodhttp://www.rathi.com/team.html#bod%23bodhttp://www.rathi.com/team.html#kbh%23kbhhttp://www.rathi.com/team.html#kbh%23kbhhttp://www.rathi.com/team.html#bod%23bod -
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Pradeep Gupta | Co-founder & Vice chairman
With over twenty years experience in the securitiesmarket. Cofounder and key driver of the Retail andInstitutional Equities business of the group.
Amit Rathi | Managing Director
A rank holder Chartered Accountant and an MBA
from Leonard N. Stern School of Business, NewYork University joined the group in 1998. He wasinstrumental in establishing the groups privatewealth management and investment bankingbusinesses. Calling him a financial guru, the Timesof India group, listed Amit in 2008 amongst the top51 young Marwaris in India (under the age of 40).
P G Kakodkar| Director
Former Chairman of State Bank of India. Director inFinancial Technologies (India). Director in SesaGoa Ltd. Director in SBI Funds Management PvtLtd & the Multi Commodity Exchange of India Ltdand a M. A. in Economics.
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Dr. S A Dave | Director
Former Chairman Securities & Exchange Board ofIndia (SEBI) and Deputy Director of the RBI.Former Chairman Unit Trust of India (UTI). Member
of General Committees of Government of India &Financial Reforms and Chairman CMIE 1998 tilldate. And a M. A. (USA) with Ph D in Economics.
C D Arha | Director
Formerly Secretary in the Union Ministry of Mines.Special Secretary & Additional Secretary in theMinistry of Coal. Resident Chief InformationCommissioner AP (Right to Information Act).Commissioner Civil Supplies (AP). Chairman & MD,APSEC. With a M .A. (History) and diplomaManagement & Administration of RuralDevelopment.
Ajit Bhushan | Director
Managing Director Citi Venture Capital London
Over 17 years experience with Citi. Joined CVCinternational in 2001. Worked on Strategy andbusiness development for Citibank in CEEMEAregion and managed Cash Management Businessfor Citi in Poland and India. B Tech (IIT Delhi) andan MBA (IIM Ahmedabad)
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Previously Head Investment Banking for India atBear Stearns (New York).He also was Global Headof IT Services and BPO investment bankingcoverage. He has also spent four years with ArthurAnderson in Bombay (India). An MBA (Finance and
International Business) from Stern School ofBusiness, New York University. He is also aqualified Chartered Accountant and CostAccountant.
Amandeep S Chahal | Head Retail
An MBA from Symbiosis, in his 14 years of workexperience Aman has worked with StandardChartered Bank National Sales Manager CapitalMarkets Retail and Regional Head Priority Banking.
He has also worked with illustrious organizations asCitibank and Yes Bank amongst others. Prior to
joining ARFSL in May 2006, he was the head ofYes Banks retail operations in the North.
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Our research expertise is at the core of the valueproposition that we offer to our clients. Researchteams across the firm continuously track variousmarkets and products. The aim is however common- to go far deeper than others, to deliver incisive
insights and ideas and be accountable for results.AR research processes incorporate quantitativeareas well as qualitative analyses. This multi-pronged approach helps us to provide superior risk-adjusted returns for our clients.
AR analysts provide objective and decisiveresearch that is designed to enable clients to makeinformed investment decisions.
The team covers entire spectrum of financialmarkets from equities, fixed income, andcommodities to currencies. They also cover theglobal markets, to give clients an unparalleledmacro-view of the investment opportunities acrossthe globe.
List Of DPs
28 ANAND RATHIFINANCIA LSERVICES LTD- A NDHERI
SEAGULL HOUSE 1STFLOOR, CHAKALAANDHERI EASTMUMBAIMAHARASHTRAINDIA 400099
MR.DURGAMISHRA
022-56983770
022-569837
29 ANAND RATHIFINANCIA LSERVICES LTD- C
OMMODITIES
SEAGULL HOUSE,PLOT NO.6 SHIVAJICOLONY CHAKALA,ANDHERI EAS T
MUMBAIMAHARASHTRAINDIA 400099
MR.RAJENDRAMANUDHAN E
022-56983770
022-269837
30 ANAND RATHIFINANCIA LSERVICES LTD- D EHRADUN
SH.SUDHIR SINGH 1-NASH VILLA ROADOPP.KUMAR DEPTSTORE S
MR. PUNEETDHINGRA
0135-3209603
0135-271237
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DEHRADOONUTTARANCHALINDIA 248001
31 ANAND RATHIFINANCIA L
SERVICES LTD- I NDORE
101, APOLLOAVENUE 1ST FLOOR,
30-B, OLD PALASIAINDORE MADHYAPRADESH INDIA452018
MR.NISHANTNYATI
07313015017
0731265837
32 ANAND RATHIFINANCIA LSERVICES LTD- J AIPUR
C-98 SANGHIUPASANA TOWERS1ST FLOOR,NEARASHIN SA CIRCLESUBHASH MARG, CSCHE ME JAIPURRAJASTHAN INDIA302001
MR.RAJKUMAR JAIN
0141-2370352
0141-236513
33 ANAND RATHIFINANCIA LSERVICES LTD- L UCKNOW
B - 2, SHUBHAMCENTR E, 5THFLOOR, C.G.ROAD,CHAKALA ,ANDHERI (E AST)MUMBAIMAHARASHTRAINDIA 400099
MR.RAKESHKUMAR
05224003168
0522391965
34 ANAND RATHI
FINANCIA LSERVICES LTD.
SHUBHAM CENTRE,
B-2, 5TH FLOORCARDINALGRACIOUS RO ADCHAKALA, ANDHERI(E) MUMBAIMAHARASHTRAINDIA 400099
MR. ANAND
RATHI
022-
40013871
022-
469837
35 ANAND RATHIFINANCIA LSERVICES LTD.- NAGPUR
S-1, SHRADHAHOUSE, 3RD FLOORKINGS WAY,OPP.BANK OF INDIA
NAGPURMAHARASHTRAINDIA 440018
MR. RAVINDRAMALOO
0712-2545625
0712-561270
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In India where ANANDRATHI is present in 21STATES:
Andhra Pradesh
AssamBiharChhattisgarhDelhiGoaGujratHaryana
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Jammu & KashmirJharkhandKarnatakaKeralaMadhya PradeshMaharashtraOrissaPunjabRajasthanTamil NaduUttar PradeshUttaranchalWest Bengal
LIST OF PRODUCTS :
Demat Accounts
Mutual Funds
Derivatives
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Commodities
Bonds
Trading Account
Insurance
SHARE MARKET
Definition
In economics, typically, the term market means theaggregate of possible buyers and sellers of a thingand the transactions between them.
The term "market" is sometimes used for what aremore strictly exchanges, organizations that facilitate
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the trade in financial securities, e.g., a stockexchange or commodity exchange. A stock market,or (equity market), is a private or public market forthe trading of company stock and derivatives ofcompany stock at an agreed price; these aresecurities listed on a stock exchange as well as thoseonly traded privately. The size of the world stockmarket is estimated at about $51 trillion. The stocksare listed and traded on stock exchanges which areentities a corporation or mutual organizationspecialized in the business of bringing buyers andsellers of stocks and securities together.
The role of stock exchanges
Stock exchanges have multiple roles in the economy,this may include the following:
Raising capital for businesses : The StockExchange provides companies with the facilityto raise capital for expansion through sellingshares to the investing public.
Mobilizing savings for investment: When peopledraw their savings and invest in shares, itleads to a more rational allocation ofresources because funds, which could have
been consumed, or kept in idle deposits withbanks, are mobilized and redirected to
promote business activity with benefits for
several economic sectors such as agriculture,commerce and industry, resulting in astronger economic growth and higherproductivity levels and firms.
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http://en.wikipedia.org/wiki/Stock_exchangehttp://en.wikipedia.org/wiki/Stock_exchangehttp://en.wikipedia.org/wiki/Commodity_exchangehttp://en.wikipedia.org/wiki/Market_systemhttp://en.wikipedia.org/wiki/Tradehttp://en.wikipedia.org/wiki/Corporationhttp://en.wikipedia.org/wiki/Stockhttp://en.wikipedia.org/wiki/Derivative_(finance)http://en.wikipedia.org/wiki/Security_(finance)http://en.wikipedia.org/wiki/Stock_exchangehttp://en.wikipedia.org/wiki/Economyhttp://en.wikipedia.org/wiki/Company_(law)http://en.wikipedia.org/wiki/Capital_(economics)http://en.wikipedia.org/wiki/Shareshttp://en.wikipedia.org/wiki/Investinghttp://en.wikipedia.org/wiki/Rationalityhttp://en.wikipedia.org/wiki/Deposit_accounthttp://en.wikipedia.org/wiki/Bankhttp://en.wikipedia.org/wiki/Businesshttp://en.wikipedia.org/wiki/Agriculturehttp://en.wikipedia.org/wiki/Commercehttp://en.wikipedia.org/wiki/Industryhttp://en.wikipedia.org/wiki/Economic_growthhttp://en.wikipedia.org/wiki/Productivity_(economics)http://en.wikipedia.org/wiki/Stock_exchangehttp://en.wikipedia.org/wiki/Stock_exchangehttp://en.wikipedia.org/wiki/Commodity_exchangehttp://en.wikipedia.org/wiki/Market_systemhttp://en.wikipedia.org/wiki/Tradehttp://en.wikipedia.org/wiki/Corporationhttp://en.wikipedia.org/wiki/Stockhttp://en.wikipedia.org/wiki/Derivative_(finance)http://en.wikipedia.org/wiki/Security_(finance)http://en.wikipedia.org/wiki/Stock_exchangehttp://en.wikipedia.org/wiki/Economyhttp://en.wikipedia.org/wiki/Company_(law)http://en.wikipedia.org/wiki/Capital_(economics)http://en.wikipedia.org/wiki/Shareshttp://en.wikipedia.org/wiki/Investinghttp://en.wikipedia.org/wiki/Rationalityhttp://en.wikipedia.org/wiki/Deposit_accounthttp://en.wikipedia.org/wiki/Bankhttp://en.wikipedia.org/wiki/Businesshttp://en.wikipedia.org/wiki/Agriculturehttp://en.wikipedia.org/wiki/Commercehttp://en.wikipedia.org/wiki/Industryhttp://en.wikipedia.org/wiki/Economic_growthhttp://en.wikipedia.org/wiki/Productivity_(economics) -
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Facilitating company growth: Companies viewacquisitions as an opportunity to expandproduct lines, increase distribution channels,hedge against volatility, increase its marketshare, or acquire other necessary businessassets. A takeover bid or a merger agreementthrough the stock market is one of thesimplest and most common ways for acompany to grow by acquisition or fusion.
Redistribution of wealth: Stocks exchanges do notexist to redistribute wealth. However, both
casual and professional stock investors,through dividends and stock price increasesthat may result in capital gains, will share inthe wealth of profitable businesses.
Corporate governance: By having a wide andvaried scope of owners, companies generallytend to improve on their management
standards and efficiency in order to satisfy thedemands of these shareholders and the morestringent rules for public corporations imposed
by public stock exchanges and thegovernment. Consequently, it is alleged thatpublic companies (companies that are owned
by shareholders who are members of thegeneral public and trade shares on publicexchanges) tend to have better managementrecords than privately-held companies (thosecompanies where shares are not publiclytraded, often owned by the company foundersand/or their families and heirs, or otherwise bya small group of investors). However, somewell-documented cases are known where it isalleged that there has been considerable
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slippage in corporate governance on the partof some public companies. Example,Pets.com (2000), Enron Corporation (2001),One.Tel (2001), Sunbeam (2001), Webvan(2001), Adelphia (2002), MCI WorldCom(2002), or Parmalat (2003), are among themost widely scrutinized by the media.
Creating investment opportunities for small
investors: As opposed to other businesses thatrequire huge capital outlay, investing in sharesis open to both the large and small stock
investors because a person buys the numberof shares they can afford. Therefore the StockExchange provides the opportunity for smallinvestors to own shares of the same companiesas large investors.
Government capital-raising for development
projects: Governments at various levels may
decide to borrow money in order to financeinfrastructure projects such as sewage andwater treatment works or housing estates byselling another category of securities knownas bonds. These bonds can be raised throughthe Stock Exchange whereby members of the
public buy them, thus loaning money to thegovernment. The issuance of such bonds canobviate the need to directly tax the citizens inorder to finance development, although bysecuring such bonds with the full faith andcredit of the government instead of withcollateral, the result is that the governmentmust tax the citizens or otherwise raiseadditional funds to make any regular coupon
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payments and refund the principal when thebonds mature.
Barometer of the economy: At the stock exchange,share prices rise and fall depending, largely,on market forces. Share prices tend to rise orremain stable when companies and theeconomy in general show signs of stabilityand growth. An economic recession,depression, or financial crisis couldeventually lead to a stock market crash.Therefore the movement of share prices and in
general of the stock indexes can be anindicator of the general trend in the economy.
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Role of stock exchanges
Raising capital
Investment opportunit
Corporate governance
http://en.wikipedia.org/wiki/Market_(economics)http://en.wikipedia.org/wiki/Economyhttp://en.wikipedia.org/wiki/Economic_recessionhttp://en.wikipedia.org/wiki/Financial_crisishttp://en.wikipedia.org/wiki/Stock_market_crashhttp://en.wikipedia.org/wiki/Stock_indexhttp://en.wikipedia.org/wiki/Market_(economics)http://en.wikipedia.org/wiki/Economyhttp://en.wikipedia.org/wiki/Economic_recessionhttp://en.wikipedia.org/wiki/Financial_crisishttp://en.wikipedia.org/wiki/Stock_market_crashhttp://en.wikipedia.org/wiki/Stock_index -
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Bombay Stock Exchange
Limited (the Exchange) is the oldest stock
exchange in Asia with a rich heritage. Popularly
known as "BSE", it was established as "The Native
Share & Stock Brokers Association" in 1875. It is
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Mobilizing resources
Company growth
Redistribution of wealth
Barometer of economy
Govt. project developm
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the first stock exchange in the country to obtain
permanent recognition in 1956 from the
Government of India under the Securities Contracts
(Regulation) Act, 1956.The Exchange's pivotal and
pre-eminent role in the development of the Indian
capital market is widely recognized and its index,
SENSEX, is tracked worldwide
India's oldest and first stock exchange:
Mumbai (Bombay) Stock Exchange. Established
in 1875. More than 6,000 stocks listed.
Total number of stock exchanges in India:
22
They are in: Ahmedabad, Bangalore,
Calcutta, Chennai, Delhi etc.
There is also a National Stock Exchange
(NSE) which is located in Mumbai.
There is also an Over the Counter
Exchange of India (OTCEI) which allows listing of
small and medium sized companies.
The regulatory agency which oversees the
functioning of stock markets is the Securities and
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Exchange Board of India (SEBI), which is also
located in Bombay.
Today, BSE is the world's number 1
exchange in terms of the number of listed
companies and the world's 5th in transaction
numbers.
SERVICES
BSE also has a wide range of services to
empower investors and facilitate smooth
transactions:
Investor Services: The Department of Investor Services redressgrievances of investors. BSE was the first exchange in the country provide an amount of Rs.1 million towards the investor protection funit is an amount higher than that of any exchange in the country. BSlaunched a nationwide investor awareness programme - 'SaInvesting in the Stock Market' under which 264 programmes were hein more than 200 cities.
The BSE On-line Trading (BOLT):BSE On-line Tradin(BOLT) facilitates on-line screen based trading in securities. BOLT currently operating in 25,000 Trader Workstations located acroover 359 cities in India.
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BSEWEBX.com: In February 2001, BSE introduced the worldfirst centralized exchange-based Internet trading systeBSEWEBX.com. This initiative enables investors anywhere in tworld to trade on the BSE platform.
Surveillance: BSE's On-Line Surveillance System (BOSmonitors on a real-time basis the price movements, volume positionand members' positions and real-time measurement of default rismarket reconstruction and generation of cross market alerts.
BSE Training Institute:BTI imparts capital market traininand certification, in collaboration with reputed management instituteand universities. It offers over 40 courses on various aspects of thcapital market and financial sector. More than 20,000 people havattended the BTI programmes.
Awards
The World Council of Corporate Governance
has awarded the Golden Peacock GlobalCSR Award for BSE's initiatives in CorporateSocial Responsibility (CSR).
The Annual Reports and Accounts of BSE forthe year ended March 31, 2006 and March31 2007 have been awarded the ICAI awardsfor excellence in financial reporting.
The Human Resource Management at BSEhas won the Asia - Pacific HRM awards forits efforts in employer branding through talentmanagement at work, health management atwork and excellence in HR through
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technology Drawing from its rich past and itsequally robust performance in the recenttimes, BSE will continue to remain an icon inthe Indian capital market
Vision
"Emerge as the premier Indianstock exchange by establishing
global benchmarks"
The National Stock
Exchange (NSE) is India's leading stock exchange
covering various cities and towns across the
country. NSE was set up by leading institutions to
provide a modern, fully automated screen-based
trading system with national reach. The Exchange
has brought about unparalleled transparency,
speed & efficiency, safety and market integrity.
NSE has played a
catalytic role in reforming the Indian securities
market in terms of microstructure, market practices
and trading volumes. The market today uses state-
of-art information technology to provide an efficient
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and transparent trading, clearing and settlement
mechanism, and has witnessed several innovations
in products & services viz. demutualisation of stock
exchange governance, screen based trading,
compression of settlement cycles, dematerialisation
and electronic transfer of securities, securities
lending and borrowing, professionalisation of
trading members, fine-tuned risk management
systems.
Securities and Exchange Board of India
(SEBI):
The Securities andExchange Board of India (SEBI) is an autonomous bodyestablished by an act of parliament in 1992. SEBI is controlledby a statutory board consisting of one chairman and sixmembers. SEBIs main objective is to protect the interest ofinvestors, and to regulate all securities market particularly theshare market. SEBI is a market regulator whose major functionsinclude regulation, superintendence and control of all securities
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markets in India, overseeing the functioning of stock exchanges,framing rules for trading practices, attending to and removinginvestor grievances, framing rules for and regulating publicissues, training and education of investors, and all matterspertaining to market intermediaries.
DEMATERIALISEDACCOUNT
In India, a demat account, the
abbreviation for dematerialised account, isa type of banking account whichdematerializes paper-based physicalstock shares. The dematerialised accountis used to avoid holding physical shares:the shares are bought and sold through astock broker.
This account is popular in India. TheSecurities and Exchange Board of India
(SEBI) mandates a demat account forshare trading above 500 shares. As ofApril 2006, it became mandatory that anyperson holding a demat account shouldposses a Permanent Account Number(PAN), and the deadline for submission ofPAN details to the depository lapsed onJanuary 2007.
Procedure:
1. Fill demats request form (DRF)(obtained from a depository participant orDP with whom your depository account is
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opened).2. Deface the share certificate(s) you wantto dematerialise by writing acrossSurrendered for dematerialisation.3. Submit the DRF & share certificate(s) toDP. DP would forward them to the issuer /their R&T Agent.4. After dematerialisation, your depositoryaccount with your DP would be creditedwith the dematerialised securities.
Required Documents:
The extent of documentation required to
open a demat account may varyaccording to your relationship with theinstitution. If you plan to open a demataccount with a bank, a savings, currentand, or other account for which the holderhave been issued a check book, suchholder has an edge over the non-accountholder. In fact, banks usually offeradditional incentives to customers who
open a demat account with them. Alongwith the application form, yourphotographs (with co-applicants) andproof of identity/residence/date of birthhave to be submitted. The DPs also askfor a DP-client agreement to be executedon non-judicial stamp paper. Here is abroad list:
- A canceled check, preferably MICR
- Proof of Identification- Proof of Address- Proof of Pan Card (mandatory)- Recent photographs,
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For proof of identification and, or address
self-attested facsimile copies of PAN card,
Voters ID, Passport, Ration card, Drivers
license, Photo credit card, Employee ID card,
Bank attestation, latest IT returns and, or
latest Electricity/Landline phone bill are
sufficient. While they only ask for
photocopies of the documents, they will need
the originals for verification.
Dematerialization of shares:
Dematerialization as the name suggests,
is a term used for conversion of shares from
their physical form to electronic form. This
conversion is done by NSDL and CDSL. The
CDSL acts as a depository for BSE, whereas
the NSDL acts as a depository for NSE. After
dematerialization, shares cease to exist in
their physical form.
Merits of dematerialization:
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No risk of being fake or stolen shares.
No stamp duty while transfer of shares.
Free from tedious paperwork as it was in the
physical form.
Stock exchanges have now discarded the
concept of marketable lots, small lots and
odd lots.
Rematerialization:
Rematerialization is the reverse of
dematerialization. It means to convert the
electronically held shares back into physical form.
You have the complete freedom of conversion from
electronic form to physical form whenever you want
to do so.
The benefits:
- A safe and convenient way to holdsecurities;- Immediate transfer of securities;- No stamp duty on transfer of securities;- Elimination of risks associated withphysical certificates such as bad deliveryfake securities, delays, thefts etc.;
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- Reduction in paperwork involved intransfer of securities;- Reduction in transaction cost;- No odd lot problem, even one share canbe sold;- Nomination facility;- Change in address recorded with DPgets registered with all companies inwhich investor holds securitieselectronically eliminating the need tocorrespond with each of them separately;- Transmission of securities is done by DPeliminating correspondence withcompanies;
- Automatic credit into demat account ofshares, arising out of bonus/split/consolidation/merger etc.- Holding investments in equity and debtinstruments in a single account
THE BULL AND THE BEAR
Bull market
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The Charging Bull in Bowling Green, New Yorkis a symbol of the bull market. A bull markettends to be associated with increasing investorconfidence, motivating investors to buy inanticipation of furthercapital gains. The longestand most famous bull market was in the 1990swhen the U.S. and many other global financialmarkets grew at their fastest pace ever.
In describing financial market behavior, thelargest group of market participants is oftenreferred to, metaphorically, as a herd. This isespecially relevant to participants in bullmarkets since bulls are herding animals. A bull
market is also described as a bull run.
Example, the United States has been describedas being in a long-term bull market since about1983, with brief upsets including the Panic of1987 and the NASDAQ Crash in 2000.
Bear market
A bear market is described as being
accompanied by widespread pessimism.Investors anticipating further losses aremotivated to sell, with negative sentimentfeeding on itself in a vicious circle.
Example, The most famous bear market inhistory was 1930 to 1932, marking the start ofthe Great Depression. A milder, low-level long-term bear market occurred from about 1967 to
1983, encompassing the stagflation economy,energy crises in the 1970s, and highunemployment in the early 1980s.
Prices fluctuate constantly on the open market;a bear market is not a simple decline, but asubstantial drop in the prices of a range of
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issues over a defined period of time. By onecommon definition, a bear market is marked bya price decline of 20% or more in a key stockmarket index from a recent peak over a 12-month period. However, no consensualdefinition of a bear market exists to clearlydifferentiate a primary market trend from asecondary market trend.
Investors frequently confuse bear markets withcorrections. Corrections are much shorter lived,whereas bear markets occur over a longerperiod with typically a greater magnitude of lossfrom top to bottom.
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PRIVATE WEALTH MANAGMENT
Introduction
Affluent individuals need sophisticated
advice and strategic guidance to capitalize on
opportunities to preserve, grow and transfertheir wealth. In addition, a desire exists
within wealthy families to simplify the
management of multigenerational needs and
lessen the profound emotional impact of
wealth on family members. AR offers the
most extensive platform of customized
servicing, individual strategies and products
to help meet the requirements of the affluent
private investor. We provide comprehensive,
integrated investment strategies to address
your wealth management needs. Working
closely with specialists across firm PWM
offers an array of products & services, which
includes AR's highly-rated research.
Philosophy
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We at AnandRathi try and understand your
financial needs; to offer you personal advice
and expert analysis that you need to make
your assets go the Xtra mile. Our ability to
think far ahead and formulate a long-term
strategy, coupled with long hours of practice
and research are the key drivers, which make
your wealth work harder for you.
We believe that the key to build wealth lies
in allocating assets across various markets,
financial instruments and industry sectors.
Keeping this in mind we leverage our
expertise in scientific asset allocation, to help
you maximize returns and minimize risks.
Process: We realize the need to simplify the
complexities of the investment strategies andwe achieve this by offering highly
customized wealth management product -
LaXmi TM (let your Assets go the Xtra Mile
TM). Our Personalized Relationship
Managers along with the expert team of
analysts and advisors will assist you in
analyzing all your investment needs and
advice you on specialized solutions created
exclusively for you. We have a dedicated
research team who constantly screens the
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market for investment prospects. The team
provides support in fine-tuning the
investment strategy & suggests how to
capitalize on these opportunities.
Research: Our research expertise is at the
core of the value proposition that we offer to
our clients. Research teams across the firm
continuously track various markets and
products. The aim is however common - to
go far deeper than others, to deliver incisive
insights and ideas and be accountable for
results. AR research processes incorporate
quantitative areas well as qualitative
analyses. This multi-pronged approach helps
us to provide superior risk- adjusted returns
for our clients. AR analysts provide objective
and decisive research that is designed to
enable clients to make informed investment
decisions. The team covers entire spectrum
of financial markets from equities, fixed
income, and commodities to currencies. They
also cover the global markets, to give clients
an unparalleled macro-view of the
investment opportunities across the globe.
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BROKERAGE & DISTRIBUTION SERVICES
1 Equity & Derivatives Brokerage:
AnandRathi provides end-to-end equity
solutions to institutional and individual
investors. Consistent delivery of high quality
advice on individual stocks, sector trends and
investment strategy has established us a
competent and reliable research unit across
the country. Clients can trade through us
online on BSE and NSE for both equities and
derivatives. They are supported by dedicated
sales & trading teams in our trading desks
across the country. Research and investment
ideas can be accessed by clients either
through their designated dealers, email, web
or SMS.
2. Mutual Funds: AR is one of India's top
mutual fund distribution houses. Our success
lies in our philosophy of providing
consistently superior, independent and
unbiased advice to our clients backed by in-
depth research. We firmly believe in the
importance of selecting appropriate asset
allocations based on the client's risk profile.
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We have a dedicated mutual fund research
cell for mutual funds that consistently churns
out superior investment ideas, picking best
performing funds across asset classes and
providing insights into performances of
select funds.
3. Depository Services: AR Depository
Services provides you with a secure and
convenient way for holding your securities
on both CDSL and NSDL. Our depository
services include settlement, clearing and
custody of securities, registration of shares
and dematerialization. We offer you daily
updated internet access to your holding
statement and transaction summary.
4. Commodities: Commodities broking - awhole new opportunity to hedge business
risk and an attractive investment opportunity
to deliver superior returns for investors. Our
commodities broking services include online
futures trading through NCDEX and MCX
and depository services through CDSL.
Commodities broking is supported by a
dedicated research cell that provides both
technical as well as fundamental research.
Our research covers a broad range of traded
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commodities including precious and base
metals, Oils and Oilseeds, agri-commodities
such as wheat, chana, guar, guar gum and
spices such as sugar, jeera and cotton. In
addition to transaction execution, we provide
our clients customized advice on hedging
strategies, investment ideas and arbitrage
opportunities.
5. Insurance Broking: As an insurance
broker, we provide to our clients
comprehensive risk management techniques,
both within the business as well as on the
personal front. Risk management includes
identification, measurement and assessment
of the risk and handling of the risk, of which
insurance is an integral part. The firm deals
with both life insurance and general
insurance products across all insurance
companies. Our guiding philosophy is to
manage the clients' entire risk set by
providing the optimal level of cover at the
least possible cost. The entire sales process
and product selection is research oriented
and customized to the client's needs. We lay
strong emphasis on timely claim settlement
and post sales services.
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INSTITUTIONAL SERVICES
Institutional Equities: The Institutional
sales and trading team provides cutting edgemarket information and investment advice to
clients, coupled with excellent execution
capabilities. A highly experienced and
reputed team of equity analysts supports the
sales team. There is an extensive focus on
research on companies, sectors and macro-
economy. The institutional equity team
tracks nearly 250 large and mid-sized
companies to give clients an unparalleled
breadth of ideas. We also provide Investment
Advisory Services for institutional clients in
India and overseas for investment in the
Indian equity markets.
Research: Our research expertise is at the
core of the value proposition that we offer to
our clients. Research teams across the firm
continuously track various markets and
products. The aim is however common - to
go far deeper than others, to deliver incisive
insights and ideas and be accountable for
results. AR research processes incorporate
quantitative areas well as qualitative
analyses. This multi-pronged approach helps
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us to provide superior risk- adjusted returns
for our clients. AR analysts provide objective
and decisive research that is designed to
enable clients to make informed investment
decisions. The team covers entire spectrum
of financial markets from equities, fixed
income, and commodities to currencies. They
also cover the global markets, to give clients
an unparalleled macro-view of the
investment opportunities across the globe.
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MANAGED INVESTMENT SERVICES
1. Portfolio Management Services (PMS):
AR Portfolio Management Service is a
discretionary investment service created to
meet the demand for more targeted
investment styles and opportunities. It offers
a range of specialized investment strategies
designed to capture opportunities across the
market spectrum. The range of products
varies from the highly defensive, capital-
protected to the most aggressive strategies in
the equities and derivatives markets. Our
investment process ensures that your strategy
and portfolio are built on solid foundations.
Together you and your relationship manager
select the strategy in line with your
individual goals. AR investment specialiststhen construct and manage your portfolio in
accordance with the chosen investment
strategy.
2. Real Estate Opportunities Fund: AR
Real Estate Opportunities Fund is a private
equity fund for high net-worth individuals,
corporates and institutions, to invest in
equity-linked instruments in the Indian real
estate and infrastructure sectors. As part of
the structural reforms to further boost India's
economic growth, the government has
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recognized the need for institutional finance
in the real estate sector. In early 2005, the
government has relaxed the FDI guidelines
in real estate and also allowed the setting upof real estate investment funds under SEBI
guidelines. These developments are expected
to provide much needed capital to provide
for the increasing demand for quality real
estate in major urban centers across the
country. To capture this opportunity, AR has
brought together a team of specialists and
advisors to guide the fund's investments who
bring together expertise in the areas of real
estate consulting, development, legal and
financial structuring.
INSTITUTIONAL WEALTH
MANAGEMNET
Introduction
Corporate and Institutional treasuries need
ever more sophisticated advice that is backed
by serious and credible research. AR IWM
provides its institutional clients integrated
wealth management solutions across globalmarkets, which are backed by proprietary
global economic & investment research.
We understand that your needs could range
from finding short-term surplus management
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strategies to higher yielding and long term
investments. The IWM team brings together
the highly-rated AR research across fixed
income, currencies and equities markets to
provide investment solutions that meet your
complex needs - from simple money-market
mutual funds to complex arbitrage strategies
in the equities or commodities markets.
Products
Equity & Derivatives
Mutual Funds
Depository Services
Commodities
Insurance
IPOs
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Client List
ACC
Baye
rCent
ury
Texti
les
Clari
ant
CRIS
IL
Crom
pton
Grea
ves
Dabu
r
Data
matic
s
GE
Ship
ping
Godr
ej
Good
lass
Nerol
ac
Grasim
Gujar
at
Amb
uja
Cem
ents
Gujar
at
Pipav
av
Port
Hein
z
India
Hind
alco
Hind
ustan
Leve
r
H&R
Johns
on
IDFC
India
n
Rayon
Jinda
l
Grou
p
Larse
n &
Toub
ro
Mast
ek
Mahi
ndra
&
Mahi
ndra
Ray
mond
s
Sterli
te
Grou
p
Syng
enta
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Tata
Iron
&
Steel
Trent
VSN
L
Wart
sila
Research: Our research expertise is at the core of
the value proposition that we offer to our clients.
Research teams across the firm continuously track
various markets and products. The aim is however
common - to go far deeper than others, to deliver
incisive insights and ideas and be accountable for
results. AR research processes incorporate
quantitative areas well as qualitative analyses. This
multi-pronged approach helps us to provide superior
risk- adjusted returns for our clients. AR analysts
provide objective and decisive research that is
designed to enable clients to make informed
investment decisions. The team covers entire
spectrum of financial markets from equities, fixed
income, and commodities to currencies. They also
cover the global markets, to give clients an
unparalleled macro-view of the investment
opportunities across the globe.
CORPORATE ADVISORY SERVICES:
Introduction: AnandRathi Advisors assists
companies in realizing tangible
improvements in various facets of their
businesses by providing a range of corporate
advisory services that includes the entire
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gamut from financial, organisational and
operational restructuring, to profit
improvement and business turnaround
strategies. Highly qualified and thoroughly
professional, our specialists, experts and
associates assist you in conceptualising
problems and devising effective solutions,
whatever be your need.
Successful assignments undertaken for
leading organisations in India as well as
overseas bear ample testimony to our wide-
ranging capabilities, utilising our
unparalleled business know-how to give you
the competitive edge. We have successfully
handled various assignments under industry
segments like refinery, cement, mining,
power, paper, metals, airlines and optic fibre.
Services
1. Performance Improvement and Cost
Reduction
2. Business Strategy and Re-engineering
3. Financial, Business & Organizational
restructuring
4. Business Turn-around Strategies
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5. Management Systems: MIS, Review &
Control Mechanism
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Our services :
Risk Management
Due diligence and research on policiesavailable
Recommendation on a comprehensive
insurance cover based on clients needs
Maintain proper records of client
policies
Assist client in paying premiums
Continuous monitoring of client
account
Assist client in claim negotiation and
settlement
6. IPO: We are a leading primary market
distributor across the country. Our strong
performance in IPOs has been a result of our
vast experience in the Primary Market, a
wide network of branches across India,
strong distribution capabilities and a
dedicated research team. We have been
consistently ranked among the top 10
distributors of IPOs on all major offerings.
Our IPO research team provides clients with
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indepth overviews of forthcoming IPOs as
well as investment recommendations. Online
filling of forms is also available
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INVESTMENT BANKING AND
CORPORATE FINANCE
Investment Banking: AR Investment
Banking provides comprehensive services to
clients including raising money in the equity
capital markets to identifying strategic
alliances, mergers and acquisition
opportunities and debt financing &
restructuring advisory.
Corporate Finance: The AR Corporate
Finance team helps clients manage their
debt-financing needs by profiling business
and cash-flow risks, defining the alternative
sources of funding , building in multiple
variables such as currencies, fixed-floating,
tenure, collateral etc. in a comprehensive
manner and finally negotiating with the
prospective lenders / buyers. The team has
also built an impressive track-record in debt
restructuring based on its superior
understanding of business needs and
relationships with key lenders. TheCorporate Finance team has handled
assignments in businesses like paper,
hospitality, telecom, textiles and sugar.
Services
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Investment Banking :
Merchant Banking
A highly experienced equity capital markets
team, a pan-India distribution presence and a
high level of quality and integrity in
executing client's transactions has enabled us
to provide tangible value to our clients'
businesses.
We bring quality independent advice and
excellent execution capabilities to create
landmark transactions for clients. Our track
record of successfully lead managed IPOs
includes Tips Industries, Emami, HCL
Infosystems and Provogue.
M&A, Private Equity
Our Mergers & Acquisition team works with
clients in creating lasting stakeholder value
through advice on mergers, acquisitions,
divestitures and private equity financing. The
team leverages on the firm's superior
understanding of businesses and tax and
regulatory environments as well as a deep
network of relationships across the
professional and corporate world. We have
worked extensively with clients in industries
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like cement, sugar, chemicals, power and
textiles for mergers and acquisition deals,
valuation and business restructuring.
Corporate Finance :
Raising Cost-effective debt resources
in Rupee and Foreign Currency for Projects,
Working Capital and Specific needs.
Financial Restructuring, CDR, OTS,
Interest Cost Reduction, Long-term Corporate
Loans for Working Capital Margins.
Financial products and services in
hedging of interest and currency risks.
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Distribution Capabilities
1. Strong pan- India distribution network,
with presence at over 130 locations across India.
2. Leading distributor of equity related
products including IPOs & mutual fund
3. Have been consistently amongst the top 8
brokers, inspite of not being a lead manager.
4. 50000 plus captive Institutional clients
and HNIs
5. Strong after market support
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SWOT ANALYSIS
STRENGTHS
1. The Company has a good reputation with
the bulk of financial services under its arm to
offer to the customers at large.
2. The firm offers to its clients the entire
spectrum of financial services ranging from
brokerage services in equities and commodities,
distribution of mutual funds, IPOs and insurance
products, real estate, investment banking, merger
and acquisitions, corporate finance and corporate
advisory.
3. The management of the company is
consisting of highly trained and skilled
professionals
WEAKNESSES
1. Since the company is reaping the benefits
of its high level performance still due to the low
network there is a low customer base being
foreseen as compare to other competing
companies in Indian stock and security market.
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investment since rising finance sector is
attracting them a lot.
CONCLUSION
At the conclusion of the summer training project in
ANAND RATHI Securities Ltd., I would like to
conclude my opinion that there is a vast untapped
potential for a emerging and rising company like
ANAND RATHI to grow in business of securities
with other supporting financial services being
provided by the company.
Since a highly enriched corporate environment is
being provided in the company I gained a
tremendous knowledge and experience in respect to
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learning the concept of Dematerlisation and its
significance to the shareholders and every new
prospects applying for the existing shares and/or any
new public offer (NPO) without any hesitation and
with all legal procedures so that the amount invested
could be remain secure and safe legally.
Thereby I came to realize the growth of the financial
sector as it is reaping success since the major rising
sector being notified as per my knowledge is finance
since company are establishing their business entities
in securities, mutual fund, insurance and many
others.
The experience of summer training was indeed a
worth in utilizing my professional approaches under
the prestigious like company ANAND RATHI
Securities Ltd.
RECOMMENDATIONS & SUGGESTION
1. This is recommended that there shouldbe an aggressive promotional measures need to
be adopted for capturing the market nation wide.
2. Further, it is suggested that knowledge
base campaign be organized near various
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corporate offices so that young professionals
may be educated the benefit of investing via
ANAND RATHI Securities and the future
benefits which may be conducive for strengthen
their financial positions.
3. The Company should locate more
offices in the time to come so that the customers
living at different areas and not reachable to the
main areas would be able to access through sub
offices or centres.
4. Since investors are sometimes find
them selves in the position to Demat their
account, ANAND RATHI should pave measures
for such investors to ease them in dealing and
opening DEMAT account at their comfort
charging reasonable brokerage and commission.
BIBLIOGRAPHY
1. BOOKS & MAGZINES: -
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a) India Today
b) Business World
2. NEWSPAPER: -
a) The Times of India
b) The Hindu
WEBSITES: -
a) www.rathi.com
b) www.sebi.gov.in
c) www.thehindubusinessonline.com
d) www.capitalmarket.com
e) www.theeconomicstimes.com
http://www.rathi.com/http://www.sebi.gov.in/http://www.thehindubusinessonline.com/http://www.capitalmarket.com/http://www.theeconomicstimes.com/http://www.rathi.com/http://www.sebi.gov.in/http://www.thehindubusinessonline.com/http://www.capitalmarket.com/http://www.theeconomicstimes.com/