An instrument that signifies an ownership position (called equity) in a corporation, and

represents a claim on its proportional share in the corporation's assets and profits. Ownership in

the company is determined by the number of shares a person owns divided by the total number

of shares outstanding. For example, if a company has 1000 shares of stock outstanding and a

person owns 50 of them, then he/she owns 5% of the company. Most stock also provides voting

rights, which give shareholders a proportional vote in certain corporate decisions. Only a certain

type of company called a corporation has stock; other types of companies such as sole

proprietorships and limited partnerships do not issue stock. Also called equity or equity securities

or corporate stock.

A stock market is a public market for the trading of company stock and derivatives at an agreed

price; these are securities listed on a stock exchange as well as those only traded privately.

The size of the world stock market was estimated at about $36.6 trillion US at the beginning of

October 2008.

The total world derivatives market has been estimated at about $791 trillion face or nominal

value, 11 times the size of the entire world economy. The value of the derivatives market,

because it is stated in terms of notional values, cannot be directly compared to a stock or a fixed

income security, which traditionally refers to an actual value. Moreover, the vast majority of

derivatives 'cancel' each other out (i.e., a derivative 'bet' on an event occurring is offset by a

comparable derivative 'bet' on the event not occurring.).

Many such relatively illiquid securities are valued as marked to model, rather than an actual

market price.) The stocks are listed and traded on stock exchanges which are entities a

corporation or mutual organization specialized in the business of bringing buyers and sellers of

the organizations to a listing of stocks and securities. The stock market in the United States

includes the trading of all securities listed on the NYSE, the NASDAQ, the Amex, as well as on

the many regional exchanges, e.g. OTCBB and Pink Sheets. European examples of stock

exchanges include the London Stock Exchange, the Deutsche Borse and the Paris Bourse, now

part of Euronean countries.

1

Function and purpose

The stock market is one of the most important sources for companies to raise money. This allows

businesses to be publicly traded, or raise additional capital for expansion by selling shares of

ownership of the company in a public market. The liquidity that an exchange provides affords

investors the ability to quickly and easily sell securities. This is an attractive feature of investing

in stocks, compared to other less liquid investments such as real estate.

History has shown that the price of shares and other assets is an important part of the dynamics

of economic activity, and can influence or be an indicator of social mood. An economy where

the stock market is on the rise is considered to be an up and coming economy. In fact, the stock

market is often considered the primary indicator of a country's economic strength and

development. Rising share prices, for instance, tend to be associated with increased business

investment and vice versa. Share prices also affect the wealth of households and their

consumption. Therefore, central banks tend to keep an eye on the control and behavior of the

stock market and, in general, on the smooth operation of financial system functions. Financial

stability is the raison d'etre of central banks.

Exchanges also act as the clearinghouse for each transaction, meaning that they collect and

deliver the shares, and guarantee payment to the seller of a security. This eliminates the risk to an

individual buyer or seller that the counterparty could default on the transaction.

The smooth functioning of all these activities facilitates economic growth in that lower costs and

enterprise risks promote the production of goods and services as well as employment. In this way

the financial system contributes to increased prosperity.

Relation of the stock market to the modern financial system

The financial system in most western countries has undergone a remarkable transformation. One

feature of this development is disintermediation. A portion of the funds involved in saving and

financing flows directly to the financial markets instead of being routed via the traditional bank

lending and deposit operations. The general public's heightened interest in investing in the stock

market, either directly or through mutual funds, has been an important component of the process.

Statistics show that in recent decades shares have made up an increasingly large proportion of

2

households' financial assets in many countries. In the 1970s, in Sweden, deposit accounts and

other very liquid assets with little risk made up almost 60 percent of households financial wealth,

compared to less than 20 percent in the 2000s. The major part of this adjustment in financial

portfolios has gone directly to shares but a good deal now takes the form of various kinds of

institutional investment for groups of individuals, e.g., pension funds, mutual funds, hedge funds,

insurance investment of premiums, etc. The trend towards forms of saving with a higher risk has

been accentuated by new rules for most funds and insurance, permitting a higher proportion of

shares to bonds. Similar tendencies are to be found in other industrialized countries. In all

developed economic systems, such as the European Union, the United States Japan and other

developed nations, the trend has been the same: saving has moved away from traditional

(government insured) bank deposits to more risky securities of one sort or another.

The stock market, individual investors, and financial risk

Riskier long-term saving requires that an individual possess the ability to manage the associated

increased risks. Stock prices fluctuate widely, in marked contrast to the stability of (government

insured) bank deposits or bonds. This is something that could affect not only the individual

investor or household, but also the economy on a large scale. The following deals with some of

the risks of the financial sector in general and the stock market in particular. This is certainly

more important now that so many newcomers have entered the stock market, or have acquired

other 'risky' investments (such as 'investment' property, i.e., real estate and collectables).With

each passing year, the noise level in the stock market rises. Television commentators, financial

writers, analysts, and market strategists are all overtaking each other to get investors' attention.

At the same time,individual investors, immersed in chat rooms and message boards, are

exchanging questionable and often misleading tips. Yet, despite all this available information,

investors find it increasingly difficult to profit. Stock prices skyrocket with little reason, then

plummet just as quickly, and people who have turned to investing for their children's education

and their own retirement become frightened. Sometimes there appears to be no rhyme or reason

to the market, only folly.

This is a quote from the preface to a published biography about the long-term value-oriented

stock investor Warren Buffett. Buffett began his career with $100, and $105,000 from seven

limited partners consisting of Buffett's family and friends. Over the years he has built himself a

3

multi-billion-dollar fortune. The quote illustrates some of what has been happening in the stock

market during the end of the 20th century and the beginning of the 21st centuary.

4

name of the organization

Edelweiss Broking Limited

Contact details:

10185 - A, 3rd Floor,

ARYA Samaj Road,

Karol Bagh, New Delhi – 100005

Headquarter Address

Mumbai

Edelweiss House,

off C.S.T. Road, Kalina,

Mumbai – 400098

Lines of Business

Investment Banking

4th Floor, Edelweiss House,

off C.S.T. Road, Kalina,

Mumbai - 400098

Tel: +91 22 4086 3535

Institutional Equities

12th Floor, Edelweiss House,

off C.S.T. Road, Kalina,

Mumbai - 400098

Tel: +91 22 4009 4600

Wealth Advisory &

Investment Services (WAIS)

6th Floor, Edelweiss House,

Wholesale Financing

5th floor, One India bulls Centre,

Tower 1, 841

5

off C.S.T. Road, Kalina,

Mumbai - 400098

Tel: +91 22 4009 4600

Senapati Bapat Marg, Elphinstone Road,

Mumbai - 400013.

Tel: +91 22 4342 8000

Insurance Brokers

1st Floor, Mittal Chamber,

Nariman Point,

Mumbai - 400021

Tel: 022 66242600

Fax: 022 66242634

Asset Management

6th Floor, Edelweiss House,

off C.S.T. Road, Kalina,

Mumbai - 400098

Tel: +91 22 4009 4600

Client Advisory Services (CAS)

5th floor, One India bulls Centre,

Tower 1, 841,

Senapati Bapat Marg, Elphinstone Road,

Mumbai - 400013.

Tel: +91 22 4088 6100

Fax: 022 6624263

Edelweiss Offices

Ahmedabad

Bhopal

Bangalore

Chennai

Gujarat

Hubli

Hyderabad

Indore

Ludhiana

Mumbai

Nashik

Pune

6

Cochin

Delhi

Gurgaon

Jaipur

Jodhpur

Kolkata

Surat

Udaipur

Ahmedabad

“CJD Wing” Ground Floor,

Madhusudan House,

Opp. Navrangpura Tel.

Exchange,

Ellisbridge, Ahmedabad - 380 006.

Ahmedabad-(Bodakdev branch)

905,Akik Tower,

Nr. Parshwa Tower,

Sarkhej Gandhi Nagar Highway,

Bodakdev,

Ahmedabad - 380 054.

Ahmedabad-panchwati

402, 4th Floor,

3rd Eye One,

Panchwati,

CG Road,

opp. Havmore restaurant

Ahmedabad

Bhopal

FF-18 Alaknanda Complex,

Zone-I, M.P. Nagar,

Bhopal

Bangalore

1st floor, Plot # 4009,

100 feet Road,

HAL II Stage,

Chennai

3/2 College Lane,

(Near SBI Circle Office)

Nungambakkam

7

Bangalore - 560008. Chennai – 600 006.

Cochin

NO- 509, 5th Floor,

Govardhan business center,

Govardhan buildings,

Chittoor roadm,

Ernakulum,

Cochin- 682035

Cochin

Shop No.4, Corporation

Door No 39-3993 B3

Vantage Point, VRM Road,

Ravipuram, Cochin,

Kerala – 682016.

Delhi

603, Merchantile House,

15, K. G. Marg, CP,

New Delhi - 110001

Tel. No.: 011 - 43571111

Gurgaon

No.302 & 303,

3rd Floor,

JMD Regent Plaza Mehrauli

Gurgaon Road,

Gurgaon

(Haryana) - 122002.

8

Gujarat

Himatnagar

Near Ahmed Chamber,

Juna Bazar,

Himatnagar - 383001.

Hyderabad

2nd Floor

MB Towers,

Road No. 2

Banjara Hills

Hyderabad - 500034

Hubli

35/36, 3rd Floor,

Eureka Junction,

Travelers Bungalow Road,

Hubli – 29

Indore

312-313, Dm Tower,

21/1, Race Course Road,

Indore.

Jaipur

601 & 602,

6th Floor Green House,

Ashok Marg,

Jaipur – 320 001.

.

Jodhpur

315, 3rd Floor,

Mody Arcade,

Near Bombay Motor Circle,

Chopasni Road,

Jodhpur – 342001

Jodhpur

2nd Floor,

E – 131 Kalpatru Shopping Center,

Kolkata

“MANGALAM” block- A,

Premises No. 24,

Hemant Basu Sarani,

9

Kumar Mandeep Tower,

Jodhpur- 342001.

Kolkata-700 001

Kolkata-Savitri Towers

2nd Floor

Savitri Towers,

3A Upper Wood Street,

Kolkata 700017

Ludhiana

Shop No. 605,

6th Floor, SCO-18,

Feroze Gandhi Market,

Opp. Ludhiana Stock Exchange,

Ludhiana, Punjab

Mumbai – Sion

11th Floor, 1101A/1101B,

Godrej Coliseum,

Off Eastern Express Highway,

Mumbai- 400 022.

Mumbai-Malad

Ground Floor,

Gemstar Commercial Complex,

Ram Chandra Extension Lane,

Malad (W)

Mumbai-400064

Mumbai - Andheri Lokhandwala

Gr.Floor,

Norwood Building,

Shop No.4,

Swami Samarth Road,

Lokhandwala Complex,

Andheri, Mumbai - 400053.

Mumbai - Goregaon-Cornershop

Shop No 8,

Tulsi Deep C.H.S. Ltd.,

Kumud Nagar,

S.V. Road,

Gurgaon(W),

Mumbai - 400 062.

10

Mumbai - Vashi-Cornershop

Shop No.50,

Welfare Chamber CHS Ltd.,

plot No 73,

E wing sec 17,

Vashi,

Mumbai - 400705.

Mumbai - Thane-Corner shop

Shop No 7 & 8,

Block no 1,

Emerald Plaza,

Hiranandani Meadows,

off pokharan Road No 2,

Thane

Mumbai - 400 610.

Mumbai - Dadar

1st Floor,

Framroze Court,

Dadasaheb Phadkke marg,

Dadar(E),

Mumbai - 400014.

Mumbai - Sakinaka

Unit No. 305, 306, 307,

Sagar Tech Plaza B,

Andheri-Kurla Road,

Andheri(E),

Mumbai - 400 073.

Mumbai - Chandermukhi-Nariman

Point

8th floor,

Chandermukhi,

Nariman Point,

Mumbai - 400021.

Mumbai - Borivali-Retail

Syndication

Shop No. 10,

Ground Floor,

Sucheta Enclave,

Chandrawarkar lane,

Maharashtra Nagar,Borivali(W)

11

Mumbai - Andheri

B-205, 2nd Floor,

Kotia Nirman Society

Opp. Laxmi Industrial Estate,

Link Road, Andheri (W),

Mumbai - 400058.

Mumbai - Opera House

Mani Mahal,

101-A, First Floor

Matthew Road

Opera House,

Mumbai - 400 004.

Mumbai - Fort

104, PJ Towers,

Stock Exchange Building,

Fort,

Mumbai – 400 001

Mumbai - Gurgaon

"F-13, 1st Floor

Washington Plaza

Dispensary Road

Off. S. V. Road

Goregoan (West)

Mumbai 400062

12

Mumbai - Borivali

Unit no 104-105,1st Floor,

Dattani Trade Center Co-op

Premises Ltd.Chandaverkar Road,

Borivali (w),

Mumbai – 400 092.

Mumbai – Ghatkopar

Atlantic Commercial Complex

221,

2nd Floor,

Javajar Road,

Near Patel Chowk.

Ghatkopar East

Mumbai- 400 077.

Mumbai –Forjett Street

Ground Floor,

My Home Apartments,

Forjett Street Cross Lane,

Mumbai - 400036.

Mumbai - Santa Cruz

Bindu Shopping Centre,

Ground Floor,

Besant Street, Tilak Road,

Nr. Station,

Santa Cruz West,

Mumbai - 400 054

Mumbai – Vile Parle

No. 701/702, 7th Floor,

Kapadia Apartments,

S.V. Road, Vile Parle (W),

Mumbai – 400 056.

Mumbai – Masjid Bunder

32 Mehta Chambers ,

4th Floor, Kalyan Street ,

Masjid (E),

Mumbai - 400009

Tel: 022 32423554 / 022 23732258

13

/ 59

Nashik

Plot No. 56, 1st Floor,

Thate Wadi

College Road,

Nashik

Pune

Cabin No 46,

Shocd, Karnala Arcade,

4th Floor,

Above Pizzahut,

J M Road,

Pune - 411004

Pune

Premium Point, Office No 105,

1st Floor, J.M.Road,

Above Colour plus Showroom,

Shivaji Nagar,

Pune - 411 005.

Surat

Office No.6,

3rd Floor,

Urmi Apartment,

Opp.Sbi Athugar Street,

Nanpura

Surat – 395001

Official Website:

www.edelweiss.in

14

About Edelweiss

Edelweiss, a rare flower found in Switzerland.

You will discover in our identity: A graphic flower that represents ideas. Around it, the

protective arms of the letter ‘e’: We believe ideas create wealth, but values protect it.

It is the practice of this core thought that has led to Edelweiss becoming one of the leading

financial services company in India. Its current businesses include investment banking, securities

broking, and investment management. We provide a wide range of services to corporations,

institutional investors and high net-worth individuals.

The core inspiring thought of ‘ideas creating wealth and values protect it’ is translated into an

approach that is led by entrepreneurship and creativity and protected by intellectual rigor,

research and analysis. 

Approach

Client Focus

Edelweiss is driven by the emphasis we place on building long-term relationships with our

clients. We work closely with our clients to equip them with the ability to address large, fast-

growing market opportunities. Our emphasis on long-term relationships also means that we have

a significant ongoing involvement with almost all of the clients that we work with.

Execution Orientation

15

We focus obsessively on delivering high quality execution through our experienced team of

professionals. Each team is led by senior personnel and is highly research and ideas driven. We

place strong emphasis on confidentiality and integrity in a sensitive business environment.

Culture

Edelweiss fosters a culture that is entrepreneurial and results-driven and that emphasizes

teamwork and intellectual rigor. Our team is encouraged to display higher levels of initiative,

drive, and hunger for learning and taking on additional responsibility.

Professional Integrity

We place a strong emphasis on confidentiality, honesty and integrity in our business dealings.

We expect our people to maintain high ethical standards, both in their professional and personal

lives. We strive to be fair in all our dealings. We respect our competitors.

Research Driven

All our businesses are built on a research and analytics foundation. Our understanding of

underlying market trends and strong analytical expertise has resulted in a demonstrated ability to

identify emerging trends and themes early. We seek to provide the highest quality research and

investment opinions to our clients.

Business Principles

The Core belief of Edelweiss is ‘Ideas create, values protect’. The Company runs its business

along the following guiding principles:

We will be a Thinking Organization. We will constantly bring ‘thought’ to everything we

16

do. Our clients’ and our own success depends on our ability to use greater ideation and

more imagination in our approach.

We will be fair to our clients, our employees and all stake holders. We want our clients

and our employees to be ‘richer’ for their relationship with us.

We will take care of our People seriously. Our policies – in spirit and in letter – will

ensure transparency and equal opportunity for all. We will go beyond the normal goals of

attracting, recruiting, retaining and rewarding fine talent: We will ensure that every

individual in Edelweiss has an opportunity to achieve their fullest potential.

We will operate as a Partnership, internally and externally. Though individuals are very

often brilliant, we believe teamwork and collaboration will always ensure a better and

more balanced organization. We will also treat our clients as partners and show them the

same respect and consideration that we would toward our internal team members.

We will focus on the Long Term. Though the world will change a lot in the coming years

and our assumptions for the future may not hold up, we will reflect on the long-term

implications of our actions. Even when making short-term decisions we will be aware of

the long-term implications.

We will focus on Growth for our clients, employees and shareholders.

Our Reputation and image is more important than any financial reward. Reputation is

hard to build and even harder to rebuild. Reputation will be impacted by our ability to

think for our clients, maintain confidentiality and by our adherence to our value system.

We will Obey and Comply with the rules of the land. We will maintain the highest

standard of integrity and honesty. When we are unclear we will seek clarifications.

We will respect Risk. Our business is going to be a constant challenge of balancing risk

and reward. Our ability to constantly keep one eye on risk will guide us through this fine

balance.

Our Financial Capital is a critical resource for growth. We will endeavor to grow, protect,

and use our financial capital wisely.

17

Type of Business:

Investment Banking

Institutional Equities

Asset Management

Mutual Funds

Wealth Management

Private Client Brokerage

Financing

Client Advisory Services

18

Organization Structure

19

20

Board of Directors

Mr. Rashesh Shah

Rashesh Shah, Chairman of the Edelweiss Group has over 20 years of experience in public and

private markets in India. Mr. Shah’s focus on innovation and his passion for growth through

expansion into related/adjacent markets has been a key differentiator for Edelweiss. Mr. Shah’s

relentless focus is on organization building and human capital development. Under his

stewardship over a period of 15 years, Edelweiss has seamlessly grown into a fully diversified

financial services company. Mr. Shah serves on the Boards of various companies as well as on

the Executive Committee of the National Stock Exchange and is serving the third term as the

Chairman of the Capital Markets Committee of FICCI. He has recently been appointed as

Chairperson, ASSOCHAM National Council on Capital Markets. His academic qualifications

include an MBA from Indian Institute of Management, Ahmedabad, a Diploma in International

Trade from the Indian Institute of Foreign Trade, New Delhi and a Bachelor’s degree in Science

from the University of Mumbai.

Mr. Venkat Ramaswamy

Executive Director and Head of Investment Banking and Co-Founder of Edelweiss. Mr. Venkat

Ramaswamy has previously worked with the Spartek Emerging Opportunities Fund and ICICI,

where he worked on project-based lending to large corporates, analyzing and evaluating

investment decisions. He subsequently managed the Spartek Fund that focused on making equity

investments in small and emerging companies. He brings significant experience and expertise on

client relationships to Edelweiss. Mr. Ramaswamy holds an MBA from the University of

Pittsburgh and is an Electronics Engineer.

21

Mr. Narendra Jhaveri

Mr. Jhaveri, on his return from U.K., after a brief stint with NCAER as Senior Economist, joined

the Economics Dept. of the Reserve Bank of India in 1965. He shifted to ICICI in 1974 as Chief

Economist and then moved to project finance. Mr. Jhaveri has served as an Independent Director

on the Boards of several leading Indian companies besides acting as an advisor to several of

them on diverse matters related to business. He also serves as the Chairman of the IMC

Economic Research and Training Foundation. Over a span of his long professional career Mr.

Jhaveri, apart from giving frequent lectures on subjects related to Indian Financial System,

Capital Market, Economic Development and Corporate Governance, has contributed a large

number of articles in Indian Economic dailies and specialized journals. He holds a Master’s

Degree in Economics from Gujarat University. He has also obtained M.Sc. in Economics from

the London School of Economics, specializing in public finance and with 40 years of experience.

Mr. Kunna Chinniah

Mr. Kunna Chinniah is Executive Vice President with GIC Special Investments ("GIC SI"). GIC

SI is the private equity arm of the Government of Singapore Investment Corporation ("GIC").

Mr Chinniah oversees the Asian private equity business for GIC SI. Mr Chinniah began his

career in 1982 as a Senior Field Engineer with Schlumberger Wire line Services in the Middle

East. He joined GIC in 1989 and between 1989 and 1997; he held various positions with the

Special Investments Department of GIC in the North America and Europe Divisions including

the position of Regional Manager, on separate occasions, for Europe and North America,

overseeing private equity investments in both regions. He was also GIC's representative in

Frankfurt. He was based in Frankfurt from March 1992 to February 1995 and in San Francisco

from November 1989 to April 1991 and from March 1995 to November 1997. His last position

prior to his return to Singapore in November 1997 was Regional Manager, North America

22

Division of the Special Investments Department. Mr Chinniah is a Chartered Financial Analyst.

He obtained his Bachelor of Engineering (Electrical) degree from the National University of

Singapore in 1982 and completed a Master of Business Administration in 1989 from the

University of California (Berkeley). In 1997, he attended the World Bank Executive Programme

conducted by Harvard University.

Mr. P.N. Venkatachalam

Mr. P.N. Venkatachalam has over 40 years of experience in the banking sector in India and

abroad. Mr. Venkatachalam joined the State Bank of India as a probationary officer on April

1967 and retired on March 2004 as a managing director. He served briefly as member of the

Interim Pension Fund Regulatory Authority of India, New Delhi in 2004 and has served as a

director on the board of Small Industries Development Bank of India. Mr. Venkatachalam is

presently the Chairman of Laser Soft Info systems Limited and a director of Khazana Jewellery

Private Limited. He holds a Masters of Arts degree in Economics and is a Certified Associate

from the Indian Institute of Bankers.Mr. Venkatachalam joined our Board on August 9, 2007.

Mr. Berjis Desai

Mr. Berjis Desai is an Independent Director on the Board of Directors of the Company. Mr.

Desai is the Managing Partner, J. Sagar & Associates, one of India's leading law firms. He holds

a Masters in Law. He is an Advocate and a Solicitor. He has been in practice for 30 years and has

rich and varied experience in the legal field, with particular emphasis on corporate law and

legislation related to Merger & Acquisition, derivatives, securities & financial laws, international

business laws and international commercial arbitration. Mr. Desai is also on the Board of various

listed companies as an Independent Director.

Mr. Sanjiv Misra

Mr. Sanjiv Misra is finance professional with over 25 years of Asia Pacific and global experience

23

with organizations like Citigroup, Salomon Brothers and Goldman Sachs. Mr. Misra is currently

the President of Phoenix Advisers Pte Ltd, an advisory and principal investing firm. He is also a

member of the Board of Trustees of Singapore Management University (SMU), the SMU

Enterprise Board, the Board of Directors of the National University Health System (NUHS), and

the Investment and Audit Committee of the Ministry of Health Holdings (MOHH) of the

Government of Singapore. He is also a member of the Investment (IC) Committee of SMU and

Chairman of the Audit and Risk Committee of NUHS and a former member of the Board of

Directors of Global Investments Ltd.

Mr. Misra is a Senior Advisor with Apollo Management; he is also Chairman-Asia, and a

member of the Board of Directors of Unitus Capital, a financial advisory and investment firm

targeting social businesses and impact investing opportunities.

Prior to joining Phoenix Advisers, Mr. Misra spent eleven years at Citigroup where he headed

several key businesses. His last assignment was as the Head of the Asia Pacific Corporate Bank

where he managed a team of over 400 bankers in the Hong Kong hub and across 16 countries in

Asia Pacific.

He also headed the Asia Pacific Investment Banking at Citigroup/Salomon Smith Barney. Prior

to joining Salomon Brothers in 1997, Mr. Misra spent over 10 years in the Investment Banking

Division at Goldman Sachs & Co in New York, Hong Kong and Singapore. During this stint he

was responsible for establishing and heading the firm’s business presence in India, including the

establishment of Goldman Sachs' joint ventures in India. Mr. Misra holds a Bachelor of Arts.

degree in economics from St Stephen’s College, Delhi University, and a post-graduate diploma

in management from IIM, Ahmedabad and a Master of Management from the J L Kellogg

Graduate School of Management at Northwestern University.

24

Investment Banking

Overview

Our Investment Banking business is dedicated to providing corporations, entrepreneurs and

investors, the highest quality independent financial advice and transaction execution. Our

professionals offer a full range of services and transaction expertise, including private

placements of equity, capital raising services in public markets, mezzanine and convertible

debt, mergers and acquisition and restructuring advisory services. We have a track record

of successfully closing more than 100 transactions to date.

Our focused effort and research-driven approach enable our professionals to be among the

most knowledgeable and best in the business. Our business has been built on strong

relationships, innovation, and uncompromising ethical standards. We aim to create

significant value for entrepreneurs and mature companies by helping them execute the right

capitalization strategy.

25

Offerings

Private Equity Advisory

A pioneer in Private Equity advisory since its inception 11 years ago with an established

leadership position in today's context.

We have been a leading Private Equity advisor for over a decade and have developed a strong

expertise across industries which enable us to recognize emerging industry themes and position

transactions within the context. Our strength in Private Equity advisory stems from:

Long standing relationships with marquee PE funds - Access to key decision makers at PE funds

gives us an unparalleled edge in optimal structuring and efficient closure of transactions.

High quality execution - An experienced team of professionals ensures complete

confidentiality, strong focus on implementation and quick turnaround time.

Focus on long term relationships - In addition to handholding the client across the entire

transaction process, we provide continued support post-transaction and have the capability to

cater to investment banking needs of the client throughout his business lifecycle.

Having achieved a leadership position in the Private Equity advisory market, we believe that we

are ideally placed to advise promoters and companies on the key considerations in a PE fund

raising exercise.

Transactions

26

Private Equity Advisory

Transaction Closure: Capital Raise of INR 2,600 million for UFO Moviez India Limited

from Providence Equity Partners

Transaction Closure: Capital raising of INR 9,600 million for Coffee Day Resorts

Private Limited

Transaction Closure: Capital Raise of USD 75 million for SKS Microfinance

Transaction Closure: Capital raising of USD 6.25 million for Printo Document Services

Pvt. Ltd

Structured Finance Advisory

Transaction Closure: INR 1,200 million fund raiser for Coastal Projects Ltd

Transaction Closure: Syndicated Rupee Term Loan facility of INR 5,810 million for Jal

Power Corporation Limited

Transaction Closure: Syndicated term loan facility for Bhoruka Power Corporation

Limited

Mergers and Acquisitions Advisory

Transaction Closure: Acquisition of 36.03% stake in Sical Logistics Limited by Tanglin

Retail Reality Developments Private Limited

Transaction Closure: Sale of 38% stake in Spicejet to Kalanithi Maran and associates

Transaction Closure: Preferential Allotment of 20.8% stake in Maytas Infra to Saudi

Binladin Group

27

Transaction Closure: Sale of DBS Cholamandalam Asset Management Company

Transaction Closure : Sale of XCEL Telecom by Horse-Shoe Capital (an affiliate of Q

Investments) to American Tower Mauritius

Transaction Closure: Acquisition of People Support, Inc. by Aegis BPO Services

Limited for USD 250 mn

Transaction Closure: Acquisition of ebusinessware Inc. by Mascon Global Ltd.

Equity Capital Markets

Transaction Closure: Open Offer to the shareholders of IL&FS Engineering and

Construction Company Limited (formerly known as Maytas Infra Limited) (”Target

Company”)

Transaction Closure: Rights Issue by The Karnataka Bank Limited of INR 4,570.4

million

Transaction Closure: Initial Public Offering of INR 3,000 million by Claris Life

sciences Limited

Transaction Closure: Initial Public Offering of INR 12,375.14 million by MOIL

Limited

Transaction Closure: Open Offer for Everonn Education Limited

Transaction Closure: Qualified Institutions Placement for Usher Agro Limited

Transaction Closure: Initial Public Offering of INR 1,724 million by Commercial

Engineers & Body Builders Co Limited

Transaction Closure: Qualified Institutions Placement for Parsvnath Developers

Limited

Transaction Closure: Initial Public Offering of INR 2,852.77 million by Electro steel

28

Steels Limited

Transaction Closure: Qualified Institutions Placement for S. Kumars Nationwide

Limited

Transaction Closure: Rights Issue by Gulf Oil Corporation Limited of INR 793.2

million

Transaction Closure: Open Offer for AGC Networks Limited

Transaction Closure: Initial Public Offering of INR 2,699 million by Hindustan Media

Ventures Limited

Transaction Closure: Initial Public Offering of INR 1,079 million by Mandhana

Industries Limited

Transaction Closure: Qualified Institutions Placement for Marg Limited

Transaction Closure: Qualified Institutions Placement for Alok Industries Limited

Transaction Closure: Further Public Offer of INR 99,304 million through an Offer for

Sale by the Government of India in NMDC Ltd.

Transaction Closure: Initial Public Offering of INR 3,249.8 million by United Bank of

India

Transaction Closure: Initial Public Offering of INR 1,417.5 million by Man

Infraconstruction Limited

Transaction Closure: Qualified Institutions Placement of NCDs along with Warrants for

Electro steel Castings Limited

Transaction Closure: Qualified Institutions Placement for The Karnataka Bank Limited

Transaction Closure: Rights Issue by City Union Bank Limited of INR 480 million

Transaction Closure: Qualified Institutions Placement for Bajaj Electricals Limited

29

Transaction Closure: Qualified Institutions Placement for Adhunik Metaliks Limited

Transaction Closure: Buy-Back of Equity Shares by Alembic Limited

Transaction Closure: Qualified Institutions Placement for Development Credit Bank

Limited

Transaction Closure: Rights Issue by Wire and Wireless (India) Limited of INR 4,498.5

million

Transaction Closure: Qualified Institutions Placement for Allied Digital Services

Limited

Transaction Closure: Qualified Institutional Placement for Parsvnath Developers

Limited

Transaction Closure: Qualified Institutional Placement for PSL Limited

Transaction Closure: Qualified Institutional Placement for Orbit Corporation Limited

Transaction Closure: Rights Issue by Alok Industries Limited of INR 4,495.9 million

Infrastructure Advisory

Transaction Closure: Capital Raise of USD 40 million for NSL Renewable Power

Private Limited

Transaction Closure: Capital Raising of INR 5,800 million for MB Power (Madhya

Pradesh) Limited

Transaction Closure: Capital Raising of INR 13,500 million for Moser Baer Projects

Private Limited

Transaction Closure: Capital raising of INR 1,500 million for Karaikal Port Private

Limited

30

Debt Restructuring Advisory

Transaction Closure: Corporate Debt Restructuring Advisory for Wockhardt Limited

Institutional Equities

Overview

Edelweiss Securities Ltd., a subsidiary of Edelweiss Financial Services Ltd., is the equities arm

of the Edelweiss Group. The company is a corporate member of both The Bombay Stock

Exchange and The National Stock Exchange of India Limited, providing equity broking and

research services, as well as marketing of equity related products, including IPOs/FCCBs, to

domestic and foreign institutional investors.

Institutional Equities – Insightful Research. Winning Strategies

In our approach lies our difference. In a short span of six years, Edelweiss Financial Services’

Institutional Equities Business (IE) has become one of the top five domestic brokerage houses

and top three derivatives desks. We are the only brokerage on the Street with a quant desk that

provides a wide product range, servicing all investor categories. Our innovative mindset,

unparalleled research, agile sales teams, and intensive execution systems have enabled us to

relentlessly service our clients in newer and different ways.

We cater to a wide clientele comprising leading domestic and international institutional

investors, including Pension Funds, Hedge Funds, Mutual Funds, insurance companies, and

banks.

Experienced Sales Team

Sales Team – Our people are your people

Backed by significant collective experience, we have developed a strong ‘buy-side’ orientation

31

towards servicing our clients. Our employees work for our clients, servicing them across

spectrum. Our people are well-trained to understand our clients’ needs and provide them

innovative products in a customized manner. Moreover, at every level of service, there is senior

level engagement and interest, ensuring quality output.

Our already established regional teams in India, APAC, US, Europe emphasizes our focus on

those markets.

Multi Strategy Execution

Seamless Execution – every single time

With an aggressive and passionate sales trading team, we are able to seamlessly execute complex

trades, across the entire spectrum of trading strategies. With the depth of our client base and the

support of our industry networks, our sales trading team is able to provide liquidity, industry

leading insights and analytics and added value across the spectrum of equity markets. This has

enabled us to significantly increase our market share in the secondary market. With large teams

to handle peak loads and intensive execution, we make pennies count.

Cutting Edge Derivatives

ADD, our specialized alternative investments desk, offers differentiated research and execution

services on the various derivatives products listed on NSE. With the help of its specialized

quantitative research desk, ADD combines, capital markets intelligence, structured derivative

products and economic/corporate developments to create insightful data points creating

investment and arbitrage opportunities

Asset Management

Overview

Edelweiss Asset Management offers a range of investment products and advisory services across

the risk return spectrum to individual and institutional investors. Our close focus on client

requirements is our inspiration in designing products which offer the best opportunity for asset

32

growth with a constant focus on risk and preservation of capital.

Over the past 7 years we have significantly strengthened our equity product offerings to cover

the entire gamut of products. We have developed significant expertise in providing advisory

services in the alternative investments space through a deep knowledge of nontraditional asset

classes such.

Our products are designed to provide our clients with superior performance through market

cycles by virtue of our deep understanding of the equities markets and our analytical approach to

risks and return.

Offering

Portfolio Management

Edelweiss offers the discerning investor an opportunity to access its asset management expertise

through its portfolio management service (PMS). The basic objective of this product is to

provide unbiased investment management strategy based on rigorous fundamental analysis while

taking cognizance of market conditions and movements.

The PMS team in addition to its own research capability also has access to the Edelweiss

Research team covering a universe of about 50 key Large Cap and Mid Cap companies across

sectors like IT, Engineering, Auto, Oil & Gas, Banking, Pharmaceuticals. The structure of

portfolio management uses a combination of the top-down and the bottom-up approach to arrive

at a basket of investment worthy stocks. The team is committed to a strong discipline in booking

profits and on focusing on client servicing and wealth enhancement.

WhyPMS?

Bespoke Advice - Discretionary Portfolio Services give you the benefit of investment advice

designed to achieve your financial objectives.

Professional Management - The service provides professional management of equity

portfolios with the objective of delivering consistent long-term performance while controlling

33

risk.

Continuous Monitoring - We recognize that portfolios need to be constantly monitored and

periodic changes made to optimize the results.

Risk Control - Risk team is responsible for establishing our investment strategy and providing

us real time information to support our portfolio managers.

What differentiates the Edelweiss PMS from investments in Mutual Funds?

‘Personal’ Fund Manager – The client’s portfolio is professionally managed by a fund

manager who is easily accessible to the investor unlike in a Mutual Fund in addition to which we

provide a designated Relationship Manager for the client who can offer asset allocation advisory

on your entire portfolio

Superior Returns – Portfolio returns are protected in volatile markets through hedging in

derivatives and short-term capital gains can be set-off against business income for clients in a

PMS as compared to Mutual Fund

Mutual funds

Overview:

Edelweiss Asset Management Limited (EAML), a subsidiary of Edelweiss Financial

Services Limited is the Investment Manager to Edelweiss Mutual Fund (EMF).

Edelweiss Asset Management Limited follows a research based and process oriented investment

approach. Edelweiss Asset Management Limited is committed to observe the highest ethical

standards while deploying investors’ monies, servicing investors and dealing with business

partners.

34

Edelweiss Asset Management Limited constitutes a team of experienced professionals from the

financial services industry. The management team is highly qualified and carries a rich

experience of working in the mutual fund industry and finance related areas. EAML is

committed to “Power your Investment Quotient” by guiding investors with the right knowledge

to spot the best investment opportunity. EAML endeavors to offer investors a wide range of

solutions across asset classes while following a disciplined and process oriented investment

approach to help investors achieve their financial goals.

Vision Statement :

To be an innovative and universally renowned asset manager providing excellent

investment solutions, exemplary services and setting the highest ethical standards.

Mission Statement :

Provide high quality investment management services to a wide spectrum of investors

Assess investor’s acceptable risk parameters and endeavor to help achieve their financial

goals

Adhere to a disciplined investment process to steadily grow our investor’s assets

Committed to offer exemplary services to our customers and setting the highest standards

of ethics

We firmly believe that by placing the best interests of our customer first, we will also serve the

best interests of our employees, stakeholders and our community.

Guiding Principles:

Thinking and Transparent organization

Ethical in all our actions

Fair to our Investors, Partners and Employees

Focus on growth

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Creativity and Innovation in everything we do

Our assets are our Stakeholders, Reputation and Capital

Other Products

Edelweiss offers a range of structured products to the discerning investor. These synthetic

investment instruments are created to meet specific investor needs. Structured products are used

as an additional asset class with an allocation tool to direct investments in the markets. By their

very nature they reduce portfolio risks as well as capture market trends. These bespoke products

offer principal protection with enhanced returns along with a strong emphasis on risk

management and risk.Structured products are ideal for cautious investors who wish to participate

in the markets but would like to protect their capital. Structured Investments can be tailor-made

to meet a specific investor's requirements. Several investment strategies can be accomplished

using customized structured investments, including the following :

Protection: Many investors choose to protect a portfolio by hedging the risks of existing

investments.

Diversification: Structured notes can help diversify risk/reward profiles of the investor during

market cycles.

Market View: Structuring can offer the flexibility to capitalize on a specific market view with

limited risk.

Growth: A core feature of many structured investments is to gain a percentage of an asset's

upside while protecting the downside.

Income: Several structures offer the ability to achieve above-market returns through periodic

income payments, often in exchange for assuming principal risk.

36

Wealth Management

Overview

At Edelweiss, Wealth Management is a Practice

It is a specialized profession where our experts combine their efforts to meet the wealth planning,

investment, and financial management needs of individuals, families, family offices, or

corporates.

Edelweiss Wealth Management takes one step closer to you, by providing an "all-in-one

approach”.

Customized Financial Solutions

Advice on asset allocation and thereby creating customized financial solutions for HNWIs, NRIs,

Trusts and Corporates

Wide range of Innovative Advisory services

We offer advisory services on Structured Products, Portfolio Management, Mutual Funds,

Insurance, Derivative Strategies, Direct Equity, IPOs, Real Estate Funds and Art Funds.

Based on our holistic investment approach we advise you, using a mix of asset classes &

innovative products.

A Dedicated Edelweiss Wealth Manager (EWM) working for You

37

Advisory Services

Portfolio Management Services

Advise on Portfolio Management Services

Direct Equity

Providing in-house research based advice on select stocks

Structured Products

Products that offer our clients unique risk-reward equations that are customized to their

investment objectives

Mutual Funds

Research based recommendations on Top Picks in Mutual Funds

Insurance

Life & General Insurance Advisory

Real Estate Funds

Advise on Investment in Real Estate through Fund Structure

IPOs

38

Advising & facilitating financing on select IPOs based on our in-house research

Art Funds

Advise on Investment in Art through Fund Structure

Derivatives Strategies

Advise on Arbitrage Strategies offering superior risk-return characteristics

Advisory Process

Identify lifestyle Goals

- Identify and quantify lifestyle goals

- Detail current personal & financial situation

Assess Identify Key Issues

Evaluate current financial position

Review wealth creation, retirement estate planning

Review tax structures e.g. individual, family offices & private companies

Analysis & Planning

- Assess financial strategy options to meet goals gap analysis

- Identify most appropriate investments to match risk profile

Wealth Management Strategy

- Tailored financial strategies to achieve stated goals

- Detail recommended asset allocation & investments

- Wealth creation& estate planning advise to protect wealth

Strategy Presentation & Implementation

- Strategies & rationale discussed

- Wealth Manager facilitates the implementation of all recommendations

Review

- Review progress towards achieving lifestyle goals

- Review appropriateness of asset allocation & investments

- Review new goals

39

Private Client Brokerage

Overview

The Private Client Services Group at Edelweiss is focused on providing products, strategies and

services to High Net worth Individuals and Corporate Clients. We have geographic reach

through our Branches, Channel Partners & Investment Consultants in over 19 locations in India.

The PCG team has highly trained equity professionals, who act as your Equity Advisor. Our ESL

Equity Advisor proactively helps you take informed investment decisions and build a healthy

portfolio.

We draw on our strong presence and industry leadership to develop a portfolio of offerings

designed to serve the spectrum of financial needs.

Our main objective is to provide clients with all the tools and services they need to reduce the

administrative burdens of managing money and focus on what you do best - maximizing your

trading performance, building your business, and attracting new sources of capital.

Our investment philosophy is rooted in the following:

Capital preservation is key - Capital gains follow from a well-thought out investment

strategy.

Invest in stocks with a long term view.

Use a combination of top-down and bottom-up approach to arrive at a basket of

investment worthy stocks

Invest on the basis of fundamental analysis of companies taking into account market

sentiments.

Maintain discipline in booking profits and use index futures to manage short term

volatility.

Offerings

Our Private Client Group is customized to meet each High Net worth Individual’s needs and is

delivered through an Edelweiss Relationship Manager. He brings together a wide range of

financial solutions and tools, research capabilities and investment expertise, besides being a

40

single point contact for all products and services.

Service offering under PCG

Cash Equity Advisory

Derivative Strategies

Financing Products

Advisory services besides Equity would also include Arbitrage and Fixed Income products. Real

Estate investments, Art Investments, PMS and Client asset management & Depository Services

are other services that the group offers in conjunction with other groups at Edelweiss.

1. Cash Equity Advisory

Providing research based advice on select stocks from across sectors to meet client’s investment

requirement ranging from positional trading to long term investment goals. For our clients we

provide ongoing portfolio consultation with a dedicated relationship manager as one point

contact for all day-to-day execution of trades and other service requirements such as advisory on

investments. The Edelweiss Relationship Manager draws on substantial Edelweiss resources and

provides our clients with:

Ongoing portfolio consultation

Access to Edelweiss research and interaction with research analysts

Meetings with company management and plant visits

Participation in earnings conference calls of companies

2. Derivatives Strategies

Edelweiss being a pioneer in Quantitative & Alternative Research, we leverage this strength for

our derivatives strategies focused towards short-term / medium investments of clients in PCG.

Derivative Strategy group, through its dedicated research team provides seamless execution for

its clients with trading view. The stock ideas generated are enhanced by combination of technical

view and derivative strategy along with the statistical data. Based on the Quantitative Research

41

products such as Pair Trades & Alpha Trades are also initiated whenever we identify the

opportunity.

3. Financing products

Financing

Overview

Edelweiss Housing Finance Limited (EHFL) is a Housing Finance Company incorporated under

the aegis of the National Housing Bank (NHB). It is part of the Edelweiss Group of Companies.

EHFL has an array of loan solutions which can be tailored to your requirements. If you’re

looking for a Home Loan, do apply to EHFL for the highest loan amount in the shortest time.

Offering

Loan

- Home Loans

Variable Rate Home loans

Fixed Rate Home loans

Fixed Variable Combo loans

- 25 year loans

The Newly launched 25 year Home loans help you purchase a property

and repay in lower / easily manageable installments

- Loan Against Property

Variable Rate Home loans

Fixed Rate Home loans

Fixed- Variable Combo loans

Re-financing

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- If you have already purchased a property and used your own funds or borrowed

from friends or relatives for the same, we could re-finance the same

Balance Transfer & Top Up

- If you already have a Home loan or a Loan against Property running with any

Bank or other financier, you could move the same to EHFL a better rate of

interest and a longer tenor, giving you the advantage of a lower EMI.

- You can also avail of an additional ("Top-Up")loan against same property

Rate of Interest

Floating rate of Interest: Floating interest rates vary depending on market conditions.

Thus the interest rate on your loan will change at pre-determined, regular intervals

Fixed rate of Interest: For those who are averse to changing rates, we also offer fixed

rates, a fixed interest rate will not change in the life of the loan

Fixed-Variable Combos: This is for those who want the best of both the worlds. A fixed

variable Combo rate is fixed for the initial two years and is variable after that.

Fair Practices Code

ECL Finance Limited (the Company), in pursuance of the directions issued by Reserve Bank of

India for Non-Banking Financial Companies (NBFCs), has adopted the following code for fair

practices while dealing with customers. The Fair Practice Code (FPC) is intended to cover the

following areas:

Applications for loans and their processing

Loan appraisal and terms/conditions

Disbursement of loans, including changes in terms and conditions

General provisions and

Grievance redressed mechanism

43

1. Applications for loans and their processing

All relevant information pertaining to the loan will be made available in the relevant loan

application form(s) or through other modes (term sheet, etc.), including the necessary loan

information and documents required to be submitted together with the duly completed

application form.

Receipt of completed applications forms will be duly acknowledged. Applicants are required to

insist for an acknowledgement in this regard.

The acknowledgement would also indicate the approximate timeframe within which the

applicant should contact the company at its registered office to ascertain the status of the loan

application.

2. Loan appraisal and terms/conditions

Loan applications shall be assessed in accordance with the company's credit appraisal process

and policies.

Upon approval of the loan, an agreement/sanction letter indicating the amount of loan

sanctioned, annualized rate of interest applicable, including method of application thereof, along

with the terms and conditions, shall be conveyed to the applicant in writing. A written

acceptance of such terms and conditions shall be retained by the company.

3. Disbursement of loans, including changes in terms and conditions

Any changes to the terms and conditions, including disbursement schedule, interest rates, service

charges, prepayment charges, etc., shall be informed individually to the borrowers in case of

account specific changes, and in case of others, the same shall be available at the registered

office / corporate office of the Company or on website or be disseminated through print media if

the Company so decide.

Changes in the interest rates and charges shall be effected prospectively.

Decision to recall / accelerate payment or performance under the agreement shall be in

44

accordance with the terms and conditions duly acknowledged by the borrower.

All securities pertaining to the loan would be released on receipt of full and final payment of the

loans, subject to any legitimate right or lien, and set-off for any other claim that the company

may have against the borrowers. If such right of set-off is to be exercised, the borrower shall be

given notice about the same, with full particulars about the remaining claims and the conditions

under which the Company is entitled to retain the securities until the relevant claim is settled /

paid.

4. General provisions

The Company shall not discriminate in extending products and facilities including loan facilities

to the physically / visually challenged applicants on the grounds of disability. They shall be

treated at par with the other applicant and their application shall be dealt on merit as per the

credit process and policy of the Company. All possible assistance will be provided to the

applicant with the disability (is) for availing of the various financial product and business

facilities offered by the Company.

5. Disbursement of loans, including changes in terms and conditions

The Company shall refrain from interference in the affairs of the borrower, except for the

purposes provided in the terms and conditions of the loan sanction documents (unless new

information, not earlier disclosed by the borrower, has come to the notice of the Company).

In case of receipt of request from the borrower for transfer of borrowable account, the consent or

otherwise, i.e. objection of the Company, if any, shall be conveyed within 21 days from the date

of receipt In the matter of recovery of loans, the Company shall not resort to undue harassment

and would operate within the legal framework.

6.Grievance Redressal

In case of any complaint/grievance, the applicant/borrowers including the applicants with

45

disability(ies) may contact our Registered Office through any of the following three channels:

Telephone: 022 - 40094400

Fax: 022 - 42273838

Mail: ECL Finance Ltd, Edelweiss House, Off. C.S.T Road, Kalina, Mumbai - 400 098

E-mail to: Eclf.grievancecell@edelcap.com

After examining the matter, it will be our endeavor to provide the borrower / applicant with our

final or other response, within a period of two (2) weeks and within a maximum period of six (6)

weeks from receipt of such complaint/grievance.

This code shall be effective from October 14, 2006. The Company shall provide for periodical

review of the compliance of this Fair Practice Code and the functioning of the grievance

redressal mechanism at various levels of management.

Grievance Redressal Procedure

In case of any complaint/grievance, the customer may contact our Corporate Office through any

of the following four channels: telephone: 022 - 4342 8393

Fax: 022 - 4342 8500, to the attention of Mr. Nilesh KUMAR Jain

Email: home@edelcap.com

Mail: Edelweiss Housing Finance Ltd, One India Bulls Centre, 5th Floor, Jupiter Mill

46

Compound, 841, Senapati Bapat Marg, Elphinstone Road, Mumbai - 400 013.

After examining the matter, it will be our endeavor to provide the customer with our final or

other response, within a period of six (6) weeks from receipt of such complaint/grievance.

Interest Rates

Housing Loan: 10.5%*

Loan Against Property: 12%*

Client Advisory Services

Overview

At Edelweiss Client Advisory Services, our team is driven not just by the quality of our ideas,

but also professional ethics and integrity. We take pride in our philosophy of offering advice

which is in the best interest of our clients. Our emphasis on building long term relationship

ensures that we work closely with our clients empowering them to gain from market

opportunities through our online portal www.edelweiss.in

www.edelweiss.in is a product that offers a unique online investment experience that is intuitive,

information rich and a hassle-free way to trade online.

47

TYPE OF RESEARCH

Research

48

Research is defined as human activity based on intellectual application in the investigation of

matter. The primary purpose for applied research is discovering, interpreting, and the

development of methods and systems for the advancement of human knowledge on a wide

variety of scientific matters of our world and the universe. Research can use the scientific

method, but need not do so. Scientific research relies on the application of the scientific method,

a harnessing of curiosity. This research provides scientific information and theories for the

explanation of the nature and the properties of the world around us. It makes practical

applications possible. Scientific research is funded by public authorities, by charitable

organizations and by private groups, including many companies. Scientific research can be

subdivided into different classifications according to their academic and application disciplines.

In this project the research type used is descriptive because this research is the most commonly

used and the basic reason for carrying out descriptive research is to identify the cause of

something that is happening. For instance, this research could be used in order to find out what

age group is buying a particular brand of cola, whether a company’s market share differs

between geographical regions or to discover how many competitors a company has in their

marketplace. However, if the research is to return useful results, whoever is conducting their

search must comply with strict research requirements in order to obtain the most accurate

figures/results possible.

DESCRIPTIVE RESEARCH

Descriptive research is used to obtain information concerning the current status of the

phenomena to describe "what exists" with respect to variables or conditions in a situation. The

methods involved range from the survey which describes the status quo, the correlation study

which investigates the relationship between variables, to developmental studies which seek to

determine changes over time.

Descriptive research can be of two types:

Quantitative descriptive research emphasizes on what is, and makes use of quantitative methods

to describe, record, analyze and interpret the present conditions.

49

Qualitative descriptive research also emphasizes on what is, but makes use of non-quantitative

research methods in describing the conditions of the present.

OBJECTIVE OF STUDY

To know the basic terminology of stock market.

50

To make the investor aware about the factors this may affect their investment.

To get the knowledge of other markets such as commodity market and derivatives.

To know the ups and downs of stock market of last two years.

To forecast or predict the future trend of stock market which helps in investment.

To know the effect of these fluctuation on the Indian economy.

SCOPE OF STUDY

Derivatives

Sebi

Stock exchange

Commodity market

Stock market

Securities

Day trading

Factor affecting Indian stock market

Effect on Indian economy

 

LIMITATIONS

51

Limitations are the limiting lines that restrict the work in some way or other. In this research

study also there were some limiting factors; some of them are as under:

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 factors as only one month was 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. Reliability:

The data collected in research work was secondary data, so, this puts a question mark on the

reliability of this data, which a very important factor of this study as conclusion has been derived

from this secondary data only.

4. Accuracy:

The facts and findings of the data cannot be accepted as accurate to some extent as firstly,

secondary data was collected. Secondly, for doing descriptive research time needed to be more,

because in short period you cannot cover each point accurately.

What is SWOT ANALYSIS?

52

SWOT analysis is a strategic planning method used to evaluate the Strengths, Weaknesses,

Opportunities, and Threats involved in a project or in a business venture. It involves specifying

the objective of the business venture or project and identifying the internal and external factors

that are favorable and unfavorable to achieve that objective.

S- STRENGTHS

Strengths are the characteristics of the business or team that give it an advantage over others in

the industry.

W- WEAKNESSES

Weaknesses are characteristics that place the firm at a disadvantage relative to others.

O-OPPORTUNITIES

Opportunities are those external chances to make greater sales or profits in the environment.

T-THREATS

Threats are those external elements in the environment that could cause trouble for the business.

SWOT analysis is a method for analyzing a business, its resources, and its environment.

53

SWOT is commonly used as part of strategic planning and looks at:

• Internal strengths

• Internal weaknesses

• Opportunities in the external environment

• Threats in the external environment

SWOT can help management in a business discover:

• What the business does better than the competition

• What competitors do better than the business

• Whether the business is making the most of the opportunities available

• How a business should respond to changes in its external environmen

The result of the analysis is a matrix of positive and negative factors for

management to address:

Positive factors Negative factors

Internal factors Strengths Weaknesses

External factors Opportunities Threats

The key point to remember about SWOT is that:

Strengths and weaknesses

Are internal to the business

54

Relate to the present situation

Opportunities and threats

Are external to the business

Relate to changes in the environment which will impact the business

Using SWOT analysis

There is no point producing a SWOT analysis unless it is actioned! SWOT analysis should be

more than a list - it is an analytical technique to support strategic decisions

Strategy should be devised around strengths and opportunities

The key words are match and convert:

A key challenge for any business is to convert weaknesses into strengths.

SWOT Analysis:

(A) Strength:

55

• The Company is well experienced and engaged in manufacturing and exporting of

Socks.

• Already established marketing network.

(B) Weakness:

• Fall of sales value, competition from Far-east. Increase in basic expenses.

• Lack of export Orders.

(C) Opportunities:

• Continuous research and development are carried out for introduction of innovative

design, special yarns for latest products.

(D) Threats:

• The products may face competition from existing and new entrants in this filed.

• Any unfavorable change in Govt. policies may affect the profitability of the Company.

• The company has been declared as sick unit.

The reasons for stock prices going "up" and "down"

56

Stock prices change every day because of market forces. By this we mean that stock

prices change because of “supply and demand”. If more people want to buy a stock

(demand) than sell it (supply), then the price moves up!

Conversely, if more people wanted to sell a stock than buy it, there would be greater

supply than demand, and the price would fall. (Basics of economics!)

Understanding supply and demand is easy. What is difficult to understand is what makes

people like a particular stock and dislike another stock. If you understand this, you will

know what people are buying and what people are selling. If you know this you will

know what prices go up and what prices go down!

To figure out the likes and dislikes of people, you have to figure out what news is

positive for a company and what news is negative and how any news about a company

will be interpreted by the people.

The most important factor that affects the value of a company is its earnings. Earnings are

the profit a company makes, and in the long run no company can survive without them. It

makes sense when you think about it. If a company never makes money, it isn't going to

stay in business. Public companies are required to report their earnings four times a year

(once each quarter).

Dalal Street watches with great attention at these times, which are referred to as earnings

seasons. The reason behind this is that analysts base their future value of a company on

their earnings projection.

If a company's results are better than expected, the price jumps up. If a company's results

disappoint and are worse than expected, then the price will fall.

Of course, it's not just earnings that can change the feeling people have about a stock. It

would be a rather simple world if this were the case! During the “dotcom bubble”, for

example, the stock price of dozens of internet companies rose without ever making even

the smallest profit.

As we all know, these high stock prices did not hold, and most internet companies saw

their values shrink to a fraction of their highs. Still, this fact demonstrates that there are

factors other than current earnings that influence stocks.

So, what are "all the factors" that affect the stock’s price? The best answer is that nobody

really knows for sure. Some believe that it isn't possible to predict how stock prices will

57

change, while others think that by drawing charts and looking at past price movements,

you can determine when to buy and sell. The only thing we do know is that stocks are

volatile and can change in price very very rapidly.

The reasons for which companies issue stocks

Why would the founders share the profits with thousands of people when they could keep profits

to themselves?

The reason is that at some point every company needs to "raise money". To do this, companies

can either borrow it from somebody or raise it by selling part of the company, which is known as

issuing stock .A company can borrow by taking a loan from a bank or by issuing bonds. Both

methods come under "debt financing". On the other hand, issuing stock is called “equity

financing”.

Issuing stock is advantageous for the company because it does not require the company to pay

back the money or make interest payments along the way.

All that the shareholders get in return for their money is the hope that the shares will someday be

worth more than what they paid for them. The first sale of a stock, which is issued by the private

company itself, is called the Initial Public Offering (IPO).

It is important that you understand the distinction between a company financing through debt and

financing through equity. When you buy a debt investment such as a bond, you are guaranteed

the return of your money (the principal) along with promised interest payments.This isn't the

case with an equity investment. By becoming an owner, you assume the risk of the company not

being successful - just as a small business owner isn't guaranteed a return, neither is a

shareholder. Shareholders earn a lot if a company is successful, but they also stand to lose their

entire investment if the company isn't successful.

Stock Picking –Having understood all the basics of the stock market and the risk involved,

now we will go into stock picking and how to pick the right stock. Before picking the right stock

you need to do some analysis.

There are two major types of analysis:

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1. Fundamental Analysis

2. Technical Analysis

Fundamental analysis is the analysis of a stock on the basis of core financial and economic

analysis to predict the movement of stocks price.

On the other hand, Technical Analysis is the study of prices and volume, for forecasting of

future stock price or financial price movements.

Simply put, fundamental analysis looks at the actual company and tries to figure out what the

company price is going to be like in the future. On the other hand technical analysis look at the

stocks chart, peoples buying behavior etc. to try and figure out what the stock price is going to be

like in the future.

In this article we will go into the basics of “fundamental analysis”. Technical analysis is a little

more complicated. It is much more of an "art" than a science. It depends more on experience and

involves some statistics and mathematics, so explaining technical analysis is out of the scope of

this article.

Calculation of BSE SENSEX

This article explains how the value of the “BSE Sensex” or “sensitive index” is calculated. If you

are not sure what we mean by the Sensex or what the Sensex is all about, you can find this out by

reading our “How to make money in the stock market?” article.

The Sensex has a very important function. The Sensex is supposed to be an indicator of the

stocks in the BSE. It is supposed to show whether the stocks are generally going up, or generally

going down.

To show this accurately, the Sensex is calculated taking into consideration stock prices of

30different BSE listed companies. It is calculated using the “free-float market capitalization”

method. This is a worldwide accepted method as one of the best methods for calculating a stock

market index.

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Please note: The method used for calculating the Sensex and the 30 companies that are taken

into consideration are changed from time to time. This is done to make the Sensex an accurate

index and so that it represents the BSE stocks properly.

3 important things you must know and follow as a new investor!

You need to KNOW some “unforgettable basics” before you enter the world of investing in

stocks. The stock market is a field dominated by savvy investors who know the ins-and-outs of

the market. For people who are not “on the inside”, the stock market can be a VERY dangerous

place:

1) Don't even consider "tips" that tell you about "hot stocks". Consider the source: There are

many people in the market who put in all their time and effort in promoting certain

stocks. They do this because they have their money invested in those stocks. If they can

get enough people to buy the stock and they can get the stock price to rise, they will sell

the stock for a huge price the stock price will crash and they will walk off to promote

another stock.

2) Relying on the advice of others, no matter how well intentioned it may be, is almost

always a complete disaster. Make sure you dig in and really examine the "facts about the

companies" before you invest. Ignore press releases which have very little substance, and

rely on "hype" to tell the company's story.

And finally the most important tip!!!

3) Only invest money you can afford to lose!! Sure this is a basic point, but many people

miss it. You should only invest money that you can honestly afford to lose!! Everyone

enters into investments with the idea of earning big profits, but in many cases, this never

works. (Especially if you are new to investing in the stock market!)

Please understand that the above tips are tips for beginners. Once you really get into the stock

market you do not need to follow these rules anymore. But if you are a new investor, you MUST

follow these rules. They are for your own safety.

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But then again, nothing comes free. Everything has a price. You will have to lose some money

make some bad decisions and then only will you really understand the market. You cannot

understand the market by just looking at it from far. By following these rules, you will basically

not lose too much!

Derivatives

Commodities whose value is derived from the price of some underlying asset like securities,

commodities, bullion, currency, interest level, stock market index or anything else are known as

“Derivatives”.

In simpler form, derivatives are financial security such as an option or future whose value is

derived in part from the value and characteristics of another security, the underlying asset. It is a

generic term for a variety of financial instruments. Essentially, this means you buy a promise to

convey ownership of the asset, rather than the asset itself. The legal terms of a contract are much

more varied and flexible than the terms of property ownership. In fact, it’s this flexibility that

appeals to investors.

When a person invests in derivative, the underlying asset is usually a commodity, bond, stock, or

currency. He bet that the value derived from the underlying asset will increase or decrease by a

certain amount within a certain fixed period of time.

‘Futures’ and ‘options’ are two commodity traded types of derivatives. An ‘options’ contract

gives the owner the right to buy or sell an asset at a set price on or before a given date. On the

other hand, the owner of a ‘futures’ contract is obligated to buy or sell the asset.

The other examples of derivatives are warrants and convertible bonds (similar to shares in that

they are assets). But derivatives are usually contracts. Beyond this, the derivatives range is only

limited by the imagination of investment banks. It is likely that any person who has funds

invested an insurance policy or a pension fund that they are investing in, and exposed to,

derivatives – wittingly or unwittingly.

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Shares or bonds are financial assets where one can claim on another person or corporation; they

will be usually being fairly standardized and governed by the property of securities laws in an

appropriate country.

On the other hand, a contract is merely an agreement between two parties, where the contract

details may not be standardized. Derivatives securities or derivatives products are in real terms

contracts rather than solid as it fairly sounds.

India Commodity Market

The vast geographical extent of India and her huge population is aptly complemented by the size

of her market. The broadest classification of the Indian Market can be made in terms of the

commodity market and the bond market. Here, we shall deal with the former in a little detail.

The commodity market in India comprises of all palpable markets that we come across in our

daily lives. Such markets are social institutions that facilitate exchange of goods for money. The

cost of goods is estimated in terms of domestic currency. India Commodity Market can be

subdivided into the following two categories:

Wholesale Market

Retail Market

Let us now take a look at what the present scenario of each of the above markets is like .The

traditional wholesale market in India dealt with whole sellers who bought goods from the

farmers and manufacturers and then sold them to the retailers after making a profit in the

process. It was the retailers who finally sold the goods to the consumers. With the passage of

time the importance of whole sellers began to fade out for the following reasons:

- The whole sellers in most situations, acted as mere parasites that did not add any value to

the product but raised its price which was eventually faced by the consumers.

- The improvement in transport facilities made the retailers directly interact with the

producers and hence the need for whole sellers was not felt.

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In recent years, the extent of the retail market (both organized and unorganized) has evolved in

leaps and bounds. In fact, the success stories of the commodity market of India in recent years

has mainly centered on the growth generated by the Retail Sector. Almost every commodity

under the sun both agricultural and industrial is now being provided at well distributed retail

outlets throughout the country.

Moreover, the retail outlets belong to both the organized as well as the unorganized sector. The

unorganized retail outlets of the yesteryears consist of small shop owners who are price takers

where consumers face a highly competitive price structure. The organized sectors on the other

hand are owned by various business houses like Pantaloons, Reliance, Tata and others. Such

markets are usually selling a wide range of articles agricultural and manufactured, edible and

inedible, perishable and durable. Modern marketing strategies and other techniques of sales

promotion enable such markets to draw customers from every section of the society. However

the growth of such markets has still centered on the urban areas primarily due to infrastructural

limitations.

Considering the present growth rate, the total valuation of the Indian Retail Market is estimated

to cross Rs. 10,000 billion by the year 2010. Demand for commodities is likely to become four

times by 2010 than what it presently is.

Money Market

When the stock prices show a downward trend, then it becomes risky to keep savings

there .Although the stock market is associated with high risks and high returns , many are risk

averse and prefer to invest in the more secure money market .

The money market deals with very short term debt securities that mature in less than a year since

the money market is extremely safe, it yields very low returns unlike the bond market.

The money market securities that are issued by the government or financial institutions or large

corporations are very liquid. Since the money market securities trade at very high denominations,

it becomes very difficult for the individual investors to have access to it.

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The money market is a type of a dealer market where firms purchase securities in their own

account by assuming the risks themselves. Unlike the stock exchanges the money market

securities do not operate in exchanges or through brokers. Transactions take place over phone or

the electronic system.

One may browse through the following links to have more detailed information about money

market.

Money Market Definition

Money Market Definition is simply meant as the short-term debt market. Treasury Bills and

certificate of deposits are regarded as the instruments in the money market.

World Money Market

World Money Market has been providing origination, trading and the distribution of short-term

debt instruments across different regions over the world. Find detailed on the world money

market.

Money Market Index Money Market Index is a true indicator of the prevailing money market,

which renders a clear-cut idea on making investment.

make a good survey of the whole market. As you know that you cannot predict the stock market,

so in that case you need to know the functioning of the market. There are some major factors that

affect stock price. So let us discuss about the different factors affecting the stock price in this

article.

Demand and Supply

One of the major factors affecting stock price is demand and supply. The trend of the stock

market trading directly affects the price. When people are buying more stocks, then the price of

that particular stock increases. On the other hand if people are selling more stocks, then the price

of that stock falls. So, you should be very careful when you decide to invest in the Indian stock

market.

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Market Cap

Never try to guess the worth of a company simply by comparing the price of the stock. You

should always keep in mind that it is not the stock but the market capitalization of the company

that determines the worth of the company. So market cap is another factor that affects stock

price.

Market Capitalization

You probably think that you have never heard of the term “market capitalization” before. You

have! When you are talking about “mid-cap”, “small-cap” and “large-cap” stocks, you are

talking about market capitalization!

Market cap or market capitalization is simply the worth of a company in terms of its shares! To

put it in a simple way, if you were to buy all the shares of a particular company, what is the

amount you would have to pay? That amount is called the “market capitalization”!

To calculate the market cap of a particular company, simply multiply the “current share price” by

the “number of shares issued by the company”! Just to give you an idea, ONGC, has a market

cap of “Rs.170, 705.21 Cr” (when this article was written)

Depending on the value of the market cap, the company will either be a “mid-cap” or “large cap”

or “small-cap” company! Now the question is, how do YOU calculate the market cap of a

particular company? You don’t! Just go to a website like MoneyControl.com and look up the

company whose market cap you are interested in finding out! The figure in front of “Mkt. Cap”

will be the market cap value.

News

When you get positive news about a company then it can increase the buying interest in the

market. On the other hand, when there is a negative press release, it can ruin the prospect of a

stock. In this case you should remember that news should not matter much but the overall

performance of the company matters more. So, news is another factor affecting stock price.

Earning/Price Ratio

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Another important factor affecting stock price is the earning/price ratio. This gives you a fair

idea of a company’s share price when it is compared to its earnings. The stock becomes

undervalued if the price of the share is much lower than the earnings of a company. But if this is

the case, then it has the potential to rise in the near future. The stock becomes overvalued if the

price is much higher than the actual earning.

So, these are the major factors that affect stock price.

Day Trading

Day trading (and trading in general) is the buying and selling of various financial instruments,

such as futures, options, currencies, and stocks, with the goal of making a profit from the

difference between the buying price and the selling price. Day trading differs slightly from other

styles of trading in that positions are rarely (if ever) held overnight or when the market being

traded is closed.

Day trading was originally only available to financial companies (such as banks), because only

they had access to the exchanges and market data. But with recent technology such as the

Internet, individual traders now have direct access to the same exchanges and market data, and

can make the same trades at very low cost.

Trading Styles

There are several different styles of day trading, suited to different day trader personalities. The

styles range from short term trading such as scalping where positions are only held for a few

seconds or minutes, to longer term swing and position trading where a position may be held

throughout the trading day. Most day trading systems have a lot of flexibility, and can have open

positions for anywhere from a few minutes to a few hours, depending upon how the trade is

doing (whether it is in profit). Some day traders will trade multiple styles, but most traders will

choose a single style and only take that type of trade.

Day trading also has different types of trade, such as trend trades, counter-trend trades, and

ranging trades. Trend trades are trades in the direction of the current price movement (i.e. buying

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If the price is moving up), and counter-trend trades are trades against the direction of the current

price movement (i.e. selling if the price is moving up). Ranging trades are trades that go back

and forth between two prices, and are used when the market is moving sideways. Most day

traders will choose a single type of trade, but some traders will take different types, and choose

which one to trade depending upon the current condition of the market.

In addition to the style and type of day trading, there are other variances between day

trader’s .Some day traders like to make many trades throughout the trading day, while others

prefer to wait for what they consider the best conditions for their trade, and perhaps only make

one trade per day. However many trades are made, the trading process that is used, and the

desired goal of making a profit, are the same. FINDINGS & SUGGESTIONS

• Aggressive Promotions: Edelweiss Broking Limited compared to its competitors

concentrates less on advertising and promotions, especially through electronic media. Its

competitors like Sharekhan, ICICI and Kotak are advertising aggressively through media. Hence

Edelweiss should concentrate more on advertising through print and electronic media.

• Tapping Rural Market: The Indian rural investors markets are relatively untapped, with

only small and private firms meeting the current demand. Edelweiss can gain the “First Mover

Advantage” over its competitors, especially in areas were commercial crops are grown and the

standard of living is high. These people do not have much option to invest other than banks and

post offices.

• Reduce the initial account opening charges: The charge for opening a trading and demat

account in Edelweiss is high compared to its competitors. This influences the potential investors

to open their account with another company which provides the same at lower prices. Thus it

acts as a mental barrier for potential customers, who tend to overlook all other benefits offered

by Edelweiss. Hence Edelweiss should consider reducing their account opening charges.

• Bring in more product differentiation: Product differentiation here means that Edelweiss

should bring in more customized services and more value proposition for large investors. It can

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reduce the brokerage charges for large investors which will encourage them to invest more in the

company.

 

 

Stock exchange

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A stock exchange, (formerly a securities exchange) is a corporation or mutual organization

which provides "trading" facilities for stock brokers and traders, to trade stocks and other

securities. Stock exchanges also provide facilities for the issue and redemption of securities as

well as other financial instruments and capital events including the payment of income and

dividends. The securities traded on a stock exchange include: shares issued by companies, unit

trusts, derivatives, pooled investment products and bonds. To be able to trade a security on a

certain stock exchange, it has to be listed there. Usually there is a central location at least for

record keeping, but trade is less and less linked to such a physical place, as modern markets are

electronic networks, which gives those advantages of speed and cost of transactions. Trade on an

exchange is by members only. The initial offering of stocks and bonds to investors is by

definition done in the primary market and subsequent trading is done in the secondary market.

A stock exchange is often the most important component of a stock market. Supply and demand

in stock markets are driven by various factors which, as in all free markets, affect the price of

stocks (see stock valuation).

There is usually no compulsion to issue stock via the stock exchange itself, nor must stock be

subsequently traded on the exchange. Such trading is said to be off exchange or over-the-counter.

This is the usual way that derivatives and bonds are traded. Increasingly, stock exchanges are

part of a global market for securities.

The role of stock exchanges

Stock exchanges have multiple roles in the economy, this may include the following:

1. Raising capital for businesses

The Stock Exchange provides companies with the facility to raise capital for expansion through

selling shares to the investing public.

2. Mobilizing savings for investment

When people draw their savings and invest in shares, it leads to a more rational allocation of

resources because funds, which could have been consumed, or kept in idle deposits with banks,

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are mobilized and redirected to promote business activity with benefits for several economic

sectors such as agriculture, commerce and industry, resulting in stronger economic growth and

higher productivity levels and firms.

3. Facilitating company growth

Companies view acquisitions as an opportunity to expand product lines, increase distribution

channels, hedge against volatility, increase its market share, or acquire other necessary business

assets. A takeover bid or a merger agreement through the stock market is one of the simplest and

most common ways for a company to grow by acquisition or fusion.

4. Redistribution of wealth

Stock exchanges do not exist to redistribute wealth. However, both casual and professional stock

investors, through dividends and stock price increases that may result in capital gains, will share

in the wealth of profitable businesses.

5. Corporate governance

By having a wide and varied scope of owners, companies generally tend to improve on their

management standards and efficiency in order to satisfy the demands of these shareholders and

the more stringent rules for public corporations imposed by public stock exchanges and the

government. Consequently, it is alleged that public companies (companies that are owned by

shareholders who are members of the general public and trade shares on public exchanges) tend

to have better management records than privately-held companies (those companies where

shares are not publicly traded, often owned by the company founders and/or their families and

heirs, or otherwise by a small group of investors). However, some well-documented cases are

known where it is alleged that there has been considerable slippage in corporate governance on

the part of some public companies. The dot-com bubble in the early 2000s, and the subprime

mortgage crisis in 2007-08, is classical examples of corporate mismanagement. Company’s

likePets.com (2000), Enron Corporation (2001), One.Tel (2001), Sunbeam (2001), Webvan

(2001),

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Adelphia (2002), MCI WorldCom (2002), Parmalat (2003), American International Group

(2008), Lehman Brothers (2008), and Satyam Computer Services (2009) were among the most

widely scrutinized by the media.

6. Creating investment opportunities for small investors

As opposed to other businesses that require huge capital outlay, investing in shares is open to

both the large and small stock investors because a person buys the number of shares they can

afford. Therefore the Stock Exchange provides the opportunity for small investors to own shares

of the same companies as large investors.

7. Government capital-raising for development projects

Governments at various levels may decide to borrow money in order to finance infrastructure

projects such as sewage and water treatment works or housing estates by selling another category

of securities known as bonds. These bonds can be raised through the Stock Exchange whereby

members of the public buy them, thus loaning money to the government. The issuance of such

bonds can obviate the need to directly tax the citizens in order to finance development, although

by securing such bonds with the full faith and credit of the government instead of with collateral,

the result is that the government must tax the citizens or otherwise raise additional funds to make

any regular coupon payments and refund the principal when the bonds mature.

8. Barometer of the economy

At the stock exchange, share prices rise and fall depending, largely, on market forces. Share

prices tend to rise or remain stable when companies and the economy in general show signs of

stability and growth. An economic recession, depression, or financial crisis could eventually lead

to a stock market crash. Therefore the movement of share prices and in general of the stock

indexes can be an indicator of the general trend in the economy.

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Major Stock Exchanges : Year ended 31 December 2010

Rank Economy Stock Exchange Location

Market

Capitalization

(USD Billions)

Trade Value

(USD

Billions)

1 United States

EuropeNYSE Euronext New York City 15,970 19,813

2 United States

EuropeNASDAQ OMX New York City 4,931 13,439

3 Japan Tokyo Stock Exchange Tokyo 3,827 3,787

4 United

KingdomLondon Stock Exchange London 3,613 2,741

5 France Paris Stock Exchange Paris 2,900 102/day

6 China Shanghai Stock Exchange Shanghai 2,717 4,496

7 Hong Kong Hong Kong Stock Exchange Hong Kong 2,711 1,496

8 Canada Toronto Stock Exchange Toronto 2,170 1,368

9 India Bombay Stock Exchange Mumbai 1,631 258

10 IndiaNational Stock Exchange of

IndiaMumbai 1,596 801

11 Brazil BM&F Bovespa São Paulo 1,545868

12 Australia Australian Securities Sydney 1,454 1,242

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Rank Economy Stock Exchange Location

Market

Capitalization

(USD Billions)

Trade Value

(USD

Billions)

Exchange

13 Germany Deutsche Börse Frankfurt 1,4291,628

14 China Shenzhen Stock Exchange Shenzen 1,311 3,572

15 Switzerland SIX Swiss Exchange Zurich 1,229 788

16 Spain BME Spanish Exchanges Madrid 1,171 1,360

17 South Korea Korea Exchange Seoul 1,091 1,607

18 Russia MICEX Moscow 949 408

19 South Africa JSE Limited Johannesburg 925 340

Bombay Stock Exchange

Introduction

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Bombay Stock Exchange is the oldest stock exchange in Asia with a rich heritage, now spanning

three centuries in its 133 years of existence. What is now popularly known as BSE was

established as "The Native Share & Stock Brokers' Association" in 1875.

BSE is the first stock exchange in the country which obtained permanent recognition (in 1956)

from the Government of India under the Securities Contracts (Regulation) Act 1956. BSE's

pivotal and pre-eminent role in the development of the Indian capital market is widely

recognized. It migrated from the open outcry system to an online screen-based order driven

trading system in 1995. Earlier an Association of Persons (AOP), BSE is now a corporatized and

demutualized entity incorporated under the provisions of the Companies Act, 1956, pursuant to

the BSE (Corporatization and Demutualization) Scheme, 2005 notified by the Securities and

Exchange Board of India (SEBI). With demutualization, BSE has two of world's best exchanges,

Deutsche Borse and Singapore Exchange, as its strategic partners.

Over the past 133 years, BSE has facilitated the growth of the Indian corporate sector by

providing it with an efficient access to resources. There is perhaps no major corporate in India

which has not sourced BSE's services in raising resources from the capital market.

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. The market capitalization as on December 31, 2007 stood

at USD 1.79 trillion. An investor can choose from more than 4,700 listed companies, which for

easy reference, are classified into A, B, S, T and Z groups.

The BSE Index, SENSEX, is India's first stock market index that enjoys an iconic stature, and is

tracked worldwide. It is an index of 30 stocks representing 12 major sectors. The SENSEX is

constructed on a 'free-float' methodology, and is sensitive to market sentiments and market

realities. Apart from the SENSEX, BSE offers 21 indices, including 12 sectorial indices. BSE

has entered into an index cooperation agreement with Deutsche Borse. This agreement has made

SENSEX and other BSE indices available to investors in Europe and America. Moreover,

Barclays Global Investors (BGI), the global leader in ETFs through its shares AR brand, has

created the 'I Shares AR BSE SENSEX India Tracker' which tracks the SENSEX. The ETF

enables investors in Hong Kong to take an exposure to the Indian equity market.

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The first Exchange Traded Fund (ETF) on SENSEX, called "SPIcE" is listed on BSE. It brings to

the investors a trading tool that can be easily used for the purposes of investment, trading,

hedging and arbitrage. SPIcE allows small investors to take a long-term view of the market. BSE

provides an efficient and transparent market for trading in equity, debt instruments and

derivatives. It has a nation-wide reach with a presence in more than 359 cities and towns of

India. BSE has always been at par with the international standards. The systems and processes

are designed to safeguard market integrity and enhance transparency in operations. BSE is the

first exchange in India and the 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).

BSE continues to innovate. In recent times, it has become the first national level stock exchange

to launch its website in Gujarati and Hindi to reach out to a larger number of investors. It has

successfully launched a reporting platform for corporate bonds in India christened the ICDM or

Indian Corporate Debt Market and a unique ticker-cum-screen aptly named 'BSE Broadcast

'which enables information dissemination to the common man on the street.

In 2006, BSE launched the Directors Database and ICERS (Indian Corporate Electronic

Reporting System) to facilitate information flow and increase transparency in the Indian capital

market. While the Directors Database provides a single-point access to information on the boards

of directors of listed companies, the ICERS facilitates the corporates in sharing with BSE their

corporate announcement.

BSE also has a wide range of services to empower investors and facilitate smooth transactions:

Investor Services: The Department of Investor Services redresses grievances of investors.

BSEwas the first exchange in the country to provide an amount of Rs.1 million towards the

investor protection fund; it is an amount higher than that of any exchange in the country. BSE

launched a nationwide investor awareness programme- 'Safe Investing in the Stock Market'

under which264 programmes was held in more than 200 cities.

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The BSE On-line Trading (BOLT): BSE On-line Trading (BOLT) facilitates on-line screen

based trading in securities. BOLT is currently operating in 25,000 Trader Workstations located

across over 359 cities in India.

BSEWEBX.com: In February 2001, BSE introduced the worlds first centralized exchange based

Internet trading system, BSEWEBX.com. This initiative enables investors anywhere in the world

to trade on the BSE platform. Surveillance: BSE's On-Line Surveillance System (BOSS)

monitors on a real-time basis the price movements, volume positions and members' positions and

real-time measurement of default risk, market reconstruction and generation of cross market

alerts.

BSE Training Institute: BTI imparts capital market training and certification, in collaboration

with reputed management institutes and universities. It offers over 40 courses on various aspects

of the capital market and financial sector. More than 20,000 people have attended the BTI

programs.

Awards

The World Council of Corporate Governance has awarded the Golden Peacock Global CSR

Award for BSE's initiatives in Corporate Social Responsibility (CSR).

The Annual Reports and Accounts of BSE for the year ended March 31, 2006 and

March31 2007 have been awarded the ICAI awards for excellence in financial reporting.

The Human Resource Management at BSE has won the Asia - Pacific HRM awards for

its efforts in employer branding through talent management at work, health management

at work and excellence in HR through technology

Drawing from its rich past and its equally robust performance in the recent times, BSE

will continue to remain an icon in the Indian capital market.

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National Stock Exchange of India

National Stock Exchange Limited

Type: Stock Exchange

Location: Mumbai, India

Owner: National Stock Exchange of India Limited

Key people:Mr. Ravi Narain (Managing Director & CEO)

Currency: INR

No. of listings: 1587

Market Cap: US$ 1.46 trillion (2006)

Indexes

S&P CNX Nifty

CNX Nifty Junior

S&P CNX 500

Website http://www.nse-india.com/

NSE is mutually-owned by a set of leading financial institutions, banks, insurance companies

and The National Stock Exchange of India Limited (NSE), is a Mumbai-based stock exchange. It

is the largest stock exchange in India in terms of daily turnover and number of trades, for both

equities and derivative trading. Though a number of other exchanges exist, NSE and the Bombay

Stock Exchange are the two most significant stock exchanges in India and between them are

responsible for the vast majority of share transactions. The NSE's key index is the S&P CNX

Nifty, known as the Nifty, an index of fifty major stocks weighted by market capitalization.

Other financial intermediaries in India but its ownership and management operate as separate

entities. There are at least 2 foreign investors NYSE Euronext and Goldman Sachs who have

taken a stake in the NSE. As of 2006[update], the NSE VSAT terminals, 2799 in total, cover

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more than 1500 cities across India. In October 2007, the equity market capitalization of the

companies listed on the NSE was US$ 1.46 trillion, making it the second largest stock exchange

in South Asia. NSE is the third largest Stock Exchange in the world in terms of the number of

trades in equities. It is the second fastest growing stock exchange in the world with a recorded

growth of 16.6%.

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FINDINGS & SUGGESTIONS

Aggressive Promotions: Edelweiss Broking Limited compared to its competitors

concentrates less on advertising and promotions, especially through electronic media. Its

competitors like Sharekhan, ICICI and Kotak are advertising aggressively through media.

Hence Edelweiss should concentrate more on advertising through print and electronic

media.

Tapping Rural Market: The Indian rural investors markets are relatively untapped, with

only small and private firms meeting the current demand. Edelweiss can gain the “First

Mover Advantage” over its competitors, especially in areas were commercial crops are

grown and the standard of living is high. These people do not have much option to invest

other than banks and post offices.

Reduce the initial account opening charges: The charge for opening a trading and

demat account in Edelweiss is high compared to its competitors. This influences the

potential investors to open their account with another company which provides the same

at lower prices. Thus it acts as a mental barrier for potential customers, who tend to

overlook all other benefits offered by Edelweiss. Hence Edelweiss should consider

reducing their account opening charges.

Bring in more product differentiation: Product differentiation here means that

Edelweiss should bring in more customized services and more value proposition for large

investors. It can reduce the brokerage charges for large investors which will encourage

them to invest more in the company.

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Conclusion:

Through this research we can conclude that:

Stock market fluctuates by the external environment.

Stock market is all about future 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 good knowledge in stock market, may survive in the market and generates

profits or good return whether the market is down

Investors should not invest on the basis of rumors they must observe the market condition or

trends Indian economy and then invest if they want to generate good return.

Stock market fluctuates by the external environment.

Stock market is all about future 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 good knowledge in stock market, may survive in the market and generates

profits or good return whether the market is down

Investors should not invest on the basis of rumors they must observe the market condition

or trends Indian economy and then invest if they want to generate good return.

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