4. To get the Demat account opened of potential customers in favor of nirmal Bang. Analysis of need and satisfaction of distribution of financial services.
5. To give a brief idea about the benefits available from Mutual Funds investment and idea of types of schemes available.
7. To study some of the mutual funds schemes and analyze them observe the funds management process of mutual funds.
8.
9. Brokerage problem: Some companies have very high brokerage chares which create differences of market share of different companies and also dissatisfaction among distributors.
35. Now with HDFC, ICICI direct, share khan, Shriram insight and other brokers,
36. Share trading in India has gone online. Starting at about 2 pct, online trading forms about pct in terms of volume (I think the figure is higher than 10 pct in the retail segment)
37. Some of these have gone on to become the biggest” brokers” in India. It has opened the market to a whole segment of people. Earlier, investing in share was done by a limited few most of who applied in an IPO and stuck with till they wanted money.
38. Now, not only online trading made life easier for these peoples, it has opened up investing and trading to segment that never before participated in it. By my rough estimates during my experiences in India tech trading in India.
41. The movement of the prices in a market or sections of a market are captured in price indices called stock market indices, of which there are many, e.g., S&P, the FTSE and the Euro next indices.
42. Such indices are usually market capitalization weighted, with the weight reflecting the contribution of the stock of the index are reviewed frequently to include/exclude stocks in order to reflects to reflects the changing business environment.
44. Stock that a traders does not actually own may be traded suing short selling; margin buying may be used to purchase stock with borrowed funds; or, derivatives may be used to control large blocks of stock for a much smaller of amount of money than would be required by outright purchases or sale.
46. In short selling, the traders borrow stock (usually from his brokerage which holds it’s client’s shares or its own share on account to lend to short sellers) then sells it on the market, hoping for the price to all.
47. The trader eventually buys back the stock, making money if the price fell in the meantime or losing money if it rose; exiting a short position by buying back the stock is called “covering a short position”.
48. This strategy may also be used by unscrupulous traders to artificially lower the price of a stock. Hence most markets either prevent short selling or place restriction on when and how a short sale can occur.
49.
50. In margin buying, trader borrows money (at interest)to buy a stock and hopes for it to rise. Most industrialized countries have regulation that requires that if the borrowing is based on collateral from other stock the trader owns outright, it can be a maximum of a certain percentage of those other stocks’ value.
51. In the United State, the margin requirements have been 50% for many years (that is, if you want to make a $100 investment, you need to put up$500, and there is often a maintenance margin below the $500).
52. A margin call is made if the total value of the investor’s account cannot support the loss of the trade.
53. (Upon a decline in the value of the margined securities additional funds may be requires to maintain the account’s equity, and with or wit out the margined securities or any others within the account may be sold by the brokers to protect its loan position. This investors is responsible for any shortfall following such forced sale).
54. Regulation of margin requirement (by the Federal Reserve) was implemented after the crash of 1929. Before that, speculators typically only needed to put up a little as 10% (or even less) of the total investment represented by the stocks purchased.
55. Other rules may include the prohibition of free-riding: putting in an order to buy stocks without paying initially (there is normally a three-day grace period for delivery of the stock.)
56. But then selling them (before the three-days are up) and using part of the proceeds to make the original payment (assuming that the value of the stocks has not declined in the interim).
58. Global issuance of equity and equity-related instrument totaled $505 billion in 2004, a 29.8% increase over the $389 billion raised in 2003. Initial public offer (IPOs) by US issuers increased 221% with 233offering that raised $45 billion, and IPOs in Europe, Middle East and Africa (EMEA) increased by 333% from $9 billion to $39 billion.
60. One of the many thing people always want to know about the stock market is, “How do I know money investing?” There are many different approaches; two basic methods are classified as either fundamental analysis or technical analysis.
61. Fundamental analysis refers to analyzing companies by their financial statements founds in SEC Filing, business trends, general economic conditions, etc.
62. Technical analysis studies prices action in market through the use of charts and quantitative techniques to attempt to forecast prices trends regardless of the company’s financial prospects.
63. One examples of a technical strategy is the Trend following method, used by John W Henry and risk control and diversification.
64. Additional, many choose to invent via the index method. One holds a weight or unweight portfolio consisting of the entire stock market or some segment of the stock market (such as the S&P 500 or Wilshire 5000).
65. The principle aim of this strategy is to maximize diversification, minimize taxes from too frequent trading and ride the general trend of the stock market (which, in the U.S, has averaged nearly 10% year, compounded annually, since World War II).
67. According to much national or state legislation, large arrays of fiscal obligation are taxed for capital gains. Taxes are charged by the state over the transactions, dividends and capital gains on the stock market, in particular in the stock market.
68. However, these fiscal obligations may vary from jurisdiction to jurisdiction because, among other reasons, it could be assumed that taxation is already incorporated into the stock prices through the different taxes companies pay to the state, or that tax free stock market operations are useful to boost economic growth.
70. Founded in 1986 by Sri Nirmal Bang Group is recognized as one of the largest retail broking houses in India, providing an array of financial products and services.
71. Our retail and institutional clients have access to product such as equities, derivatives, commodities, currency derivatives, mutual fund, IPOs, insurance, depository services and PMS.
72. Throughout our history, we have fostered one overriding purpose each client with personal services and quality work by adhering to the principal, we have grown to become a successful as well-respect firm of highly qualified professional.
73. The group is headed by Mr. Dilip Bang and Mr. Kishore Bang who bring forward industry expertise, insight and most important, create an environment of unmatched to client.
74. We are registered members of the Bombay Stock Exchanges limited (BSE), National Stock Exchanges of India limited (NSE), Multi Commodity Exchanges of India limited (MCX), national commodity & Derivatives Exchanges limited (NCDEX), National Multi Commodity Exchanges of India limited (NMCE) and MCX stock Exchange limited and also depository participants of NSDL and CDSL.
83. Client relationship from the core of our business. We value each client, no matter what size, as a long-term relationship. And we seek to provide unmatched services to each client and place him as a partner at the center of everything we do.
84. From the very beginning of the relationship, we work closely with every client to identify his financial goals and risk tolerance levels and leverage our strength of the product offering, research and financial strength to help achieve his goals. In the process, we become an professional partners, creating opportunity, adding value and transform vision into reality.
88. We have developed a strong and enduring team by recruiting from leading graduate and postgraduate universities and promoting from within. Our team work together to provide superior results to our client. At the same time, each of our clients is assigned a specific team member who ‘owner’ the relationship, providing continuity, responsiveness and a point of easy access to the firm.
90. We strive to maintain standards at all times and lay emphasis on honesty, integrity and confidentiality. We speak and act to ensure transparency at all levels and in everything we do.
92. The strength of our balance sheet is such that it gives greater confidence to all our retail and institutional clients in detail with us. The financial strength of the group helps in future building the network and infrastructure to cater to the larger market.
93.
94. We have trading terminal (both direct and indirect), online monitoring, control terminal (administration terminals) and back office support terminal (settlement terminal) across all location and centers.
95. We have India’s best single screen Multi Exchanges Trading Software platform. Our entire centers across the country are connected through our own network, leased ISDN lines and LAN network, MPLS and internet.
96.
97. For back office operations, we use the lidha Didha system of Apex Soft cell Pvt. Ltd. This is one of the top most back office software in the industry. It has the capacity to process over one lakh traders in a five minute frame.
101. Nirmal Bang is the most comprehensive website, which allows you to invest in shares, mutual funds, derivatives (Future and Option) and other financial products. Simply put, we offer you products for every investment need of yours.
107. You can also do an intra-settlement trading up to 3 to 4 times your available funds, where in you take long buy/short sell position in stocks with in the intention of squaring off the position within the same day settlement cycle.
108. In margin trading, you take buy/sell position in stocks(s) with the intention of acquiring off the position within the same settlement cycle. If, during the course of the settlement cycle, he price moves in your favor (rises in case you have a buy position or falls in case you have a sell position), you make profit. In case you have the option to take/give delivery of buy/sell position respectively if you have sufficient cash/securities to do so.
109. Normally to buy shares, you have to place (ensure availability of limit) 100% of the order value, while to sell shares, you need to have shares in your Demat account. However, margins are blocked only to safeguard any adverse price movement. At present, you have to place 33.33% of the order value as margin. With margin trading, you can leverage on your trading limit by taking buy/sell positions much more than what you could have taken in cash segment. However, the risk profile of your transaction goes up.
111. Through Margin PLUS you can do an intra-settlement trading up to 10 times your available funds, where in you take long buy/sell position in stock with the intention of squaring off the position within the same day’s settlement cycle. Margin PLUS will give a much higher leverage in your limits.
112. Margin PLUS is an order placement feature where you can take a position at market price and also place a cover order for the position specifying the SLTP and the limit price. This will minimize the loss cover at the time of taking the position itself. There by it gives a clear view of maximum downside involved in a particular position at a particular price, Nirmal Bang won’t levy a normal margin ranging from 21% to 50%. It would block he maximum loss which customer can suffer.
114. This facility can be used only for selling you is demat stocks which already exist in you’re demat account. When you are looking at an immediate liquidity option, ‘cash on spot’ may work the best for you, on selling shares through “cash on spot”, money is certified to your bank a/c the same evening & not on the exchange payout date.
116. Buy today sell tomorrow (BTST) is a facility that allows you sell shares even on 1st and 2nd day after the buying order date, without you having to Waite for the receipt of shares into your demat account.
128. Passport, Voter ID Card, Driving license, Bank Passbook, Rent Agreement, Ration Card, Current Telephone Bill, Current Electric Bill, Flat Maintenance Bill, and Certificate Issued by employer registered under MAPIN, Insurance Policy.
142. Copy of the balance sheet for the last 2 financial years (copies of annual balance sheet to be submitted every years)
143. Copy of latest share holding pattern including list of all those holding more than 5% in the share capital of the company, duly certified by the company secretary/ whole time Director/MD. (copy of updated shareholding patterns to be submitted every year)
144. Copies of the memorandum and articles of association in case of a company / body corporate or partnership deed in case of a partnership firm
145. Copy of the Resolution of Board of Directors’ approving participation in equity / derivatives/ debts trading and naming authorized persons for dealing in securities.
146. Photographs of partners/whole time directors, individual promoters holding 5% or more, either directly or indirectly, in the shareholding of the company and of persons authorized to deal in securities.
151. Volatility refers to the dynamic changes in price that securities undergo when trading activity continues on the Stock Exchanges. Generally, higher the volatility of a security/contract, greater is its price swings.
152. There may be normally greater volatility in thinly traded securities/contracts than in active securities/contracts. As a result
153. Of volatility, your order may only be partially executed or not executed at all.
154. Or the price at which your order got executed may be substantially different from the last traded price or changes substantially thereafter, resulting in notional or real losses.
157. Liquidity refers to the ability of market participants to buy and or sell securities/ contracts expeditiously at a competitive price and with minimal price difference.
158. Generally, it is assumed that more the number or order available in a market, greater is the liquidity.
159. Liquidity is important because with greater liquidity, it is easier for investors to buy and/or sell securities/ contracts swiftly and with minimal price difference, and as a result, investors are more likely to pay or receive a competitive price for securities/contracts purchased or sold.
160. There may be a risk of lower liquidity in some securities/contracts as compared to active securities/contracts. As a result, your order may only be partially executed, or may be executed with relatively greater price difference or may not be executed at all.
161. 1.2 Buying/Selling without intention of giving and or taking delivery of a securities, as part of a day trading strategy, may also result into losses, because in such a situation, stock may have to be sold/purchased at a low/high prices, compared to the executed price levels, so as not to have any obligation to delivery/receive a security.
163. Spread refers to the difference in best buy prices and the best sell prices. It represents the differential between the prices of buying a securities and immediately selling it or vice versa.
164. Lower liquidity and higher volatility may result in wider than normal spreads for loss liquid or illiquid securities/contracts. This is turn will hamper better price formation.
166. Most exchanges have a facility for investors to place “limit orders”, “stop loss orders” etc”. The placing of such orders (e.g., “stop loss” limit orders) which are intended to limit losses to certain amount may not be effective many a time because rapid movement in market conditions may make it impossible to execute such orders..
167. A “market” order will be executed promptly, subject to available of orders on opposite side, without regard to price and that, while the customer may receive a prompt of a “market” order, the execution may be at available prices of outstanding orders, which satisfy the order quantity, on price time priority. It may be understood that these prices may be significantly different from the last traded prices or the best prices in that security.
168. A “limit” order will be executed only at the time “limit” price specified for the order or a better price. However, while the customer receives prices protection, there is a possibility that the order may not be executed at all.
169. A stop loss order is generally placed “away” from the current price of a stock / contract, and such order gets activated if and when stock/contract reaches, or trades through, the stop price.
170. Sell stop order are entered ordinarily below the current price, and buy stop orders are entered ordinarily above the current price. When the stock reaches the pre-determined price, or trades through such price, the stop loss order convert to a market/limit order and is executed at the limit order.
171. There is no assurance therefore that the limit order will be executable since a stock/contract might penetrate the pre-determined price, in which case, the risk of such order not getting executed arises, just as with a regular limit order.
172.
173. Under certain market condition, it may be difficult or impossible to liquidate a position in the market at a reasonable price or at all, when there are no outstanding order either on the buy side or the sell side, or if trading is halted in a security due to any action on account of unusual trading activity or stock hitting circuit or for any other reason.
174.
175. This margin will have to be paid within a stipulated time frame, generally before commencement of trading next dat.
176. If you fail to deposit the additional margin by the deadline or if an outstanding debt occurs in your account, the broker/member may liquidate a part of or the whole position or substitute securities. In this case, you will be liable for any losses incurred due to such close-outs.
177. Under certain market condition, an investor may find it difficult or impossible to execute transactions. For example, this situation can occur due to factors such as illiquidity i.e. when there are insufficient bids or offers or suspension of trading due to price limit or circuit breakers etc.
178. In order to maintain market stability, the following steps may be adopted: changes in the margin rate increase in the cash margin rate or others. These new measures may also be applied to the existing open interests. In such conditions, you will be required to put up additional margins or reduce your options.
179.
180. An option holder who neither sells his option in the secondary market nor exercises it prior to its expiration will necessary lose his entire investment in the option. If the price of the underlying does not change in the anticipated direction before the option expires to an extent sufficient to cover the cost of the option, the investors may lose all or a significant part of his investment in the option.
181. The exchange may impose exercise restrictions and have absolute authority to restrict the exercise of option at certain times in specified circumstances.
182.
183. The terms ‘constituent’ shall mean and include a client, a customer or an investor, who deals with a members for the purpose of acquiring and/or selling of securities through the mechanism provided by NSE/BSE.
184.
185. The order placed by the clients over the phone or orally from the office would be entered into the trading system and after due surveillance would be transmitted to concerned Exchange instantaneously within a few seconds.
186. But some orders at the discretion of Shriram Insight Share Brokers Ltd. (SISBL) may be subject to manual review and clearances which may cause delay in processing the order or rejection of the order.
187. The client agrees that placing an order, including a market order does not guarantee execution of the order. It is understood by the client that with respect to market order, the order will be executed at a price which may be different from the price at which the securities is traded when their order was entered into system.
188. The client are required to take confirmation of their order immediately or at least once a day either in person or over telephone which would be deemed to have the same effect as given in person.
189. The order placed by the clients would be their own investment decisions and the clients will not hold SISBL or any of its employees or associates, liable for any losses incurred by them.
190. This extends to any decisions made by the client on the basis of any information that may be made available on the website of SISBL.
191. However SISBL shall not be liable for failure of the system or for any loss,
192. Damage or other costs arising in way out of:
193. Telecom network or system failures including failure of ancillary or associated system which forms or does not form or does not form part of trading workstation installation, or fluctuation of power, or other environmental conditions: or
194. Act of god, fir, flood, war, act of violence, or any other similar occurrence: or
195. Any incidental, special or consequential damages including without limitation of loss or profit.
197. The execution or order cancellation or modification is not guaranteed. Cancellation of orders is possible only if the original remains pending at the exchanges. Unless otherwise specified by SISBL, any order not executed at the end of the day shall stand cancelled.
202. Payment for purchase of securities has to be made by account payee cheque only from the declared bank a/c of the client only favoring ‘Shriram Insight Share Brokers Ltd’
203. By T+ 1st day but not later than the due date for playing of funds to the concerned exchanges and not to nay employee or purported representatives of SISBL. The client shall not make any payments of SISBL through any third party account or an account of any other client SISBL.
204. It is understood by the client that date on which clear funds are available in the bank account of SISBL would be treated as the date of having received the payment although a receipt may be issued at an earlier date for the cheque given by the client.
205. Therefore, the clients are required to give the cheque sufficiently in advance so that the amount is credited in SISBL account before the due date. SISBL would present the cheques in normal clearing and would not be responsible for any delay due to clearing in the banking system.
206. The client further undertakes that in case he fails to make payment of consideration to SISBL in respect of any one or more securities purchased by him before the pay in date notified by the exchange from time to time.
207. SISBL can sell the securities at any time on the exchanges not later than the fifth trading day reckoned from the date of pay-in.
208. Otherwise SISBL shall have the power to pledge the shares with scheduled Banks and/or non banking finance companies to realize the money and meet the Pay-in obligations to the concerned exchanges.
210. Securities purchased by the client will be delivered to the DP account of the client (as specified in the registration from the by the client) by SISBL only if all the money, on any account, due from the client till date of delivery is realized in full.
211. Part delivery of securities based on part payment will not be allowed. Any error in giving the details regarding default DP account will be clients’ responsibility and he will not hold SISBL responsible for any loss due to transfer of shares into the account as mentioned above.
212. The instruction for delivery to client account will be issued within time schedule specified by the concerned Exchanges, prevalent at the time. If the delivery could not be made on the due date, due to nonpayment of dues from the client then the delivery will be made within seven days of payment of the dues.
213. But, nonpayment for dues date may result in sale of such purchased securities at the cost and penalty of the client. In case the securities are unpaid on the pay-out date, same will be taken/transferred into the designated beneficiary account of SISBL to avoid SEBI pool penalty charges.