Vipan Project

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PROJECT REPORT

CAPITAL MARKET

Submitted to: HCL infosystem Ltd.Mohali Chandigarh

In the partial fulfillment of the requirement for the degree

Of

Master of Business Administration

(2011-12)

Under the guidance of:- Submitted by:-

Mr. BHARAT CHABRA VIPAN KUMAR

MBA 3th.SEMESTER

ROLL.NO. 611012028


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DECLERATION

I am Vipan kumar student of M.B.A Third semester (university roll

no.611012028) at herebydeclare that I have completed my research report on the topic titled

capital market in HCL as a compulsory part of my course curriculum.

The information provided in the report is original and has not been

copied from anywhere.

This report is not submitted to any other university/institute for theaward of any other degree/diploma.

VIPAN KUMAR


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PREFACE

It is my pleasure to be indebted to various people, who directly or indirectly

contributed in the development of this work and who influenced my thinking,

behavior, and acts during the course of study. I express my sincere gratitude to Mr.

Rakesh Asstt. Prof. Management Sri Sai University, Palampur for his support,

cooperation, and motivation provided to me during the study for constant inspiration,

presence and blessings. I also extend my sincere appreciation to Mr. bharat chhabra

Asstt. finance Manager in HCL. Who provided his valuable suggestions and precious

time in accomplishing my project report. Lastly, I would like to thank the almighty

and my parents for their moral support and my friends with whom I shared my day-

to-day experience and received lots of suggestions that improved my quality of work.

VIPAN KUMAR


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Acknowledgement

Modern organizations are highly complex ad dynamics systems. They operate under veryturbulent social economic and political environment. They are required to reconcile

several incompatible goals. Conflicting roles and divergent interest they are also

fraught with the use risk and uncertainties, hence tactful management of such

organization to plan to execute guide, coordination and control the performance of

people to achieve predetermined goals. Management has to keep the organization

vibrant moving and in equilibrium. It has to achieve goal which themselves are

changing it is therefore a problem highly complex and ticklish.

This information will be asset to the manager in making effective decision.

This research is used to acquire to analyze information and to make suggestion to

management as to how marketing problems should be solved.

The marketing research is the process which links to individuals through

information in important part of the curriculum of MBA programme is project taken by

the students to institute under which he or she is studying, after completion of the second

semester of the programme.

The objective of this project is to enable the students to understand the application of the

academics in the real life. I am fully confident that this project report will be extremely

useful to the management .

We would also like to thank the faculty members and the staff members of HCL Info

systems Ltd. for their kind support and help during the project.

VIPAN KUMAR


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Index

Serial No. Particulars Page No.

1. Research methodology

2. Hindustan computer limited

3. Indian Capital market

4. Types of capital market

5. Intermediaries of capital market

6. Investors in Capital market

7. Growth of Capital market in India

8. Scenario of Indian capital market

9. Factor affecting capital market

10. What are the Sensex & the Nifty?

11. Classification of Indian Capital Market

12. Investment Strategies

13. Reforms in the Capital Market

14. SEBI- The Regulator

15. Dos and Do nots

16. Summary of findings,Hypothesis Conclution and Suggestions


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EXECUTIVE SUMMARY

An exploratory research has been done to figure out the effectiveness and role of capital

market. The data collected was analyzed quantitatively to help me study about the role,

functions and reforms of capital market. It made me aware about the working of

secondary market.

The reports also contains information about the regulatory framework of the capital

market. The study helped me to understand about the IPOs,the trading pattern in themarket and various terms which otherwise were not known to me.


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OBJECTIVE OF THE STUDY

The main objective of the report is to undertake a comprehensive study of the capital

market. The project contains secondary data to evaluate the capital market.

Assessment of Performance of Indian Securities Market

Evaluating Book building process in india

Resource Mobilisation by Government and Corporate Sector


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RESEARCH METHODOLOGY

This project requires a detailed understanding of the concept Capital Market.Therefore, firstly we need to have a clear idea of what is capital market, how it is

managed in HCL , what are the different ways in which the financing of capital

market is done in the company.

The management of capital market involves managing inventories, accountsreceivable and payable and cash. Therefore one also needs to have a sound

knowledge about cash management, inventory management and receivables

management.

Then comes the financing of capital market, i.e. how the market capital isfinanced, what are the various sources through which it is done.

And, in the end, suggestions and recommendations on ways for bettermanagement and control of capital market are provided.


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SCOPE OF THE STUDY

This project is vital to us in a significant way. It does have some

importance for the company too. These are as follows

This project will be a learning device for the finance student. Through this project we would study the various methods of the capital market. The project will be a learning of planning and financing capital market. The project would also be an effective tool for credit policies of the companies. This will show different methods of holding inventory and dealing with cash and

receivables.

This will show the liquidity position of the company and also how do they maintaina particular liquidity position.


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LIMITATIONS OF THE STUDY

We cannot do comparisons with other companies unless and until we havethe data of other companies on the same subject.

Only the printed data about the company will be available and not thebackend details.

Future plans of the company will not be disclosed to us.

Lastly, due to shortage of time it is not possible to cover all the factors anddetails regarding the subject of study.

The latest financial data could not be reported as the companys websiteshave not been updated.


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HINDUSTAN COMPUTERS LIMITED:

Type Public

(BSE: 500179,BSE: 532281)

Founded 11th August 1976

Headquarters Noida, India

(Delhi metropolitan area), India

Key People Shiv Nadar, Founder, Chairman & CEOSanjay Kumar Choudhary , Vineet Nayar

Industry Information Technology Services

Revenue 4.7 billion USD

Employees ~53,000 (as on 31st Dec 2007)

Website www.hcl.in

Hindustan Computers Limited, also known as HCL Enterprise, is one ofIndia's

largest electronics, computing and information technology company. Based in Noida,

nearDelhi, the company comprises two publicly listed Indian companies, HCL

Technologies and HCL Infosystems.

HCL was founded in 1976 by Shiv Nadar, Ajay Choudhary and four of their colleagues.

HCL was focused on addressing the IT hardware market in India for the first two decades

of its existence with some sporadic activity in the global market. In 1981, HCL seeded a

company focused on addressing the computer training industry, NIIT, though it has

currently divested its stake in the company. In 1991, HP took minority stake in the
http://en.wikipedia.org/wiki/Bombay_Stock_Exchangehttp://www.bseindia.com/price_finder/stockreach.asp?scripcd=500179http://en.wikipedia.org/wiki/Bombay_Stock_Exchangehttp://www.bseindia.com/price_finder/stockreach.asp?scripcd=532281http://en.wikipedia.org/wiki/New_Okhla_Industrial_Development_Authorityhttp://en.wikipedia.org/wiki/New_Okhla_Industrial_Development_Authorityhttp://en.wikipedia.org/wiki/Delhi_metropolitan_areahttp://en.wikipedia.org/wiki/Indiahttp://en.wikipedia.org/wiki/Indiahttp://en.wikipedia.org/wiki/Shiv_Nadarhttp://en.wikipedia.org/wiki/USDhttp://en.wikipedia.org/wiki/USDhttp://www.hcl.in/http://en.wikipedia.org/wiki/Indiahttp://en.wikipedia.org/wiki/Electronicshttp://en.wikipedia.org/wiki/Computinghttp://en.wikipedia.org/wiki/Information_technologyhttp://en.wikipedia.org/wiki/Noidahttp://en.wikipedia.org/wiki/Delhihttp://en.wikipedia.org/wiki/HCL_Technologieshttp://en.wikipedia.org/wiki/HCL_Technologieshttp://en.wikipedia.org/wiki/Shiv_Nadarhttp://en.wikipedia.org/w/index.php?title=Ajai_Chowdhry&action=edit&redlink=1http://en.wikipedia.org/wiki/1981http://en.wikipedia.org/wiki/NIIThttp://en.wikipedia.org/wiki/1991http://en.wikipedia.org/wiki/1991http://en.wikipedia.org/wiki/NIIThttp://en.wikipedia.org/wiki/1981http://en.wikipedia.org/w/index.php?title=Ajai_Chowdhry&action=edit&redlink=1http://en.wikipedia.org/wiki/Shiv_Nadarhttp://en.wikipedia.org/wiki/HCL_Technologieshttp://en.wikipedia.org/wiki/HCL_Technologieshttp://en.wikipedia.org/wiki/Delhihttp://en.wikipedia.org/wiki/Noidahttp://en.wikipedia.org/wiki/Information_technologyhttp://en.wikipedia.org/wiki/Computinghttp://en.wikipedia.org/wiki/Electronicshttp://en.wikipedia.org/wiki/Indiahttp://www.hcl.in/http://en.wikipedia.org/wiki/USDhttp://en.wikipedia.org/wiki/Shiv_Nadarhttp://en.wikipedia.org/wiki/Indiahttp://en.wikipedia.org/wiki/Delhi_metropolitan_areahttp://en.wikipedia.org/wiki/New_Okhla_Industrial_Development_Authorityhttp://www.bseindia.com/price_finder/stockreach.asp?scripcd=532281http://en.wikipedia.org/wiki/Bombay_Stock_Exchangehttp://www.bseindia.com/price_finder/stockreach.asp?scripcd=500179http://en.wikipedia.org/wiki/Bombay_Stock_Exchange


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company (26%) and the company was known as HCL HP for the five years of the joint

venture. On termination of the joint venture in 1996, HCL became an enterprise which

comprises HCL Technologies (to address the global IT services market) and HCL

Infosystems (to address the Indian and APAC IT hardware market). HCL has since then

operated as a holding company.

AN OVERVIEW ABOUT THE COMPANY

HCL Infosystems is no flash in the Information Technology pan. Founded in 1976, the

firm has climbed into pantheon of India's corporate giants on the strength of its IT

products and services. HCL Infosystems specializes in IT hardware (PC's and servers, as

well as networking, imaging and communications products), and system integration

services serving the domestic Indian market. In addition to its consumer products, the

company provides commercial IT products, facilities management, network services, and

IT security services for clients in such industries as government, financial services, and

education. HCL Corporation owns significant stakes in HCL Infosystems (about 44%)

and sister company HCL Technologies.

HCL Infosystems Ltd, a listed subsidiary of HCL, is an India-based hardware and

systems integrator. It claims a presence in 170 locations and 300 service centre. Its

manufacturing facilities are based in Chennai, Pondicherry and Uttarakhand .Its

headquarters is in Noida.

HCL Peripherals (A Unit of HCL Infosystems Limited) Founded in the year 1983, has

established itself as a leading manufacturer of computer peripherals in India,

encompassing Display Products, Thin Client solutions, Information and InteractiveKiosks. HCL Peripherals has two Manufacturing facilities, one in Pondicherry

(Electronics) and the other in Chennai (Mechanical) .The Company has been accredited

with ISO 9001:2000, ISO 14001, TS 16949 and ISO 13485.
http://en.wikipedia.org/wiki/1996http://en.wikipedia.org/wiki/Chennaihttp://en.wikipedia.org/wiki/Pondicherryhttp://en.wikipedia.org/wiki/Uttarakhandhttp://en.wikipedia.org/wiki/Noidahttp://en.wikipedia.org/wiki/Noidahttp://en.wikipedia.org/wiki/Uttarakhandhttp://en.wikipedia.org/wiki/Pondicherryhttp://en.wikipedia.org/wiki/Chennaihttp://en.wikipedia.org/wiki/1996


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HISTORY

HCL Infosystems Ltd is one of the pioneers in the Indian IT market,with its origins in 1976. For over quarter of a century, we havedeveloped and implemented solutions for multiple market segments,across a range of technologies in India. We have been in the forefrontin introducing new technologies and solutions. The highlights of theHCL saga are summarized below:

Y E

ARH I G H L I G H T S

1976

- Foundation of the Company laid- Introduces microcomputer-based programmable calculators with wideacceptance in the scientific / education community

1977

- Launch of the first microcomputer-based commercial computer with a ROM-based Basic interpreter- Unavailability of programming skills with customers results in HCLdeveloping bespoke applications for their customers

1980- Formation of Far East Computers Ltd., a pioneer in the Singapore ITmarket, for SI (System Integration) solutions

1983

- HCL launches an aggressive advertisement campaign with the theme ' evena typist can operate' to make the usage of computers popular in the SME(Small & Medium Enterprises) segment. This proposition involved menu-based applications for the first time, to increase ease of operations. Theresponse to the advertisement was phenomenal.-HCL develops special program generators to speed up the development ofapplications

1986

- Zonal offices of banks and general insurance companies adoptcomputerization- Purchase specifications demand the availability of RDBMS products on thesupplied solution (Unify, Oracle). HCL arranges for such products to beported to its platform.- HCL assists customers to migrate from flat-file based systems to RDBMS

1991 - HCL enters into a joint venture with Hewlett Packard


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- HP assists HCL to introduce new services: Systems Integration, ITconsulting, packaged support services ( basic line, team line )

1994- HCL acquires and executes the first offshore project from IBM Thailand- HCL sets up core group to define software development methodologies

1995

- Starts execution of Information System Planning projects- Execution projects for Germany and Australia- Begins Help desk services

1996

- Sets up the STP ( Software Technology Park ) at Chennai to execute

software projects for international customers- Becomes national integration partner for SAP

1997- Kolkata and Noida STPs set up- HCL buys back HP stake in HCL Hewlett Packard

1998 - Chennai and Coimbatore development facilities get ISO 9001 certification

1999

- Acquires and sets up fully owned subsidiaries in USA and UK- Sets up fully owned subsidiary in Australia- HCL ties up with Broadvision as an integration partner

2000

- Sets up fully owned subsidiary in Australia- Chennai and Coimbatore development facilities get SEI Level 4 certification- Bags Award for Top PC Vendor In India- Becomes the 1st IT Company to be recommended for latest version of ISO9001 : 2000- Bags MAIT's Award for Business Excellence- Rated as No. 1 IT Group in India

2001-Launched Pentium IV PCs at below Rs 40,000-IDC rated HCL Infosystems as No. 1 Desktop PC Company of 2001

2002

-Declared as Top PC Vendor by Dataquest-HCL Infosystems & Sun Microsystems enters into a Enterprise DistributionAgreement- Realigns businesses, increasing focus on domestic IT, Communications &Imaging products, solutions & related services

2003- Became the first vendor to register sales of 50,000 PCs in a quarter- First Indian company to be numero uno in the commercial PC market


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- Enters into partnership with AMD- Launched Home PC for Rs 19,999

2004

- 1st to announce PC price cut in India, post duty reduction, offers Ezeebee atRs. 17990- Maintains No.1 position in the Desktop PC segment for year 2003- Becomes the 1st company to cross 1 lac unit milestone in the IndianDesktop PC market- Partners with Union Bank to make PCs more affordable, introduces lowestever EMI for PC in India- Registers a market share of 13.7% to become No.1 Desktop PC company foryear 2004- Crosses the landmark of $ 1 billion in revenue in just nine months

2005

- Launch of HCL PC for India, a fully functional PC priced at Rs.9,990/-

- Rated as the No.1 Desktop PC company by IDC India -Dataquest

- 'Best Employer 2005' with five star ratings by IDC India -Dataquest.

- 'The Most Customer Responsive Company 2005'

-IT Hardware Category by The Economic Times -Avaya Global Connect.

-Top 50 fastest growing Technology Companies in India' & 'Top 500 fastest

Growing Technology Companies in Asia Pacific' by 'Deloitte & Touche'. by

'Deloitte & Touche'

-'7th IETE -Corporate Award 2005' for performance excellence in the field of

Computers & Telecommunication Systems by IETE.

-India 's 'No.1 vendor' for sales of A3 size Toshiba Multi Functional Devices

for the year '04 -'05 by IDC.-Toshiba 'Super Award 2005 towards business excellence in distribution of

Toshiba Multifunctional products,

-Strategic Partners in Excellence' Award by In focus Corporation for

projectors.

-'Most valued Business Partner' Award for projectors by In focus Corporation

in 2005

2006

(till

June)

- 75, 000+ machines produced in a single month- HCL Infosystems in partnership with Toshiba expands its retail presence inIndia by unveiling 'shop Toshiba'

- HCL Infosystems & Nokia announce a long term distribution strategy- HCL the leader in Desktops PCs unveils India's first segment specific rangeof notebooks brand - 'HCL Laptops'- IDBI selects HCL as SI partner for 100 branches ICT infrastructure rollout- HCL Infosystems showcases Computer Solutions for the Rural Markets inIndia- HCL Support wins the DQ Channels-2006 GOLD Award for Best After


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Sales Service on a nationwide customer satisfaction survey conducted by IDC- HCL Infosystems First in India to Launch the New Generation of HighPerformance Server Platforms Powered by Intel Dual - Core Xeon 5000Processor- HCL Forms a Strategic Partnership with APPLE to provide Sales & Service

Support for iPods in India

INDIA CAPITAL MARKET


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Introduction-Capital Market is a broad term which includes Primary Market, Secondary

Market, Term leading Institutions, Banks and anybody which is engaged in providing

long term Capital. It is a market in which money is lent for periods longer than a year.In

other words, capital market is a mechanism through which debtors receive long-term

funds and creditors invest their funds in long-term securities.

The capital market includes the stock market and the bond market. Financial

regulators, such as the Securities and Exchange Board of India. The capital markets in

their designated countries to ensure that investors are protected against fraud. The capital

markets consist of the primary market and the secondary market. The primary markets

are where new stock and bonds issues are sold (underwriting) to investors. The secondary

markets are where existing securities are sold and bought from one investor or speculator

to another, usually on an exchange.

Money Market however includes all agencies providing short term (working capital) to

the industry.

Investors in the capital market

1. Individuals.

2. Corporate.

3. Governments.

4. Foreign countries.

5. Banks.

6. Provident Funds.

7. Financial Institutions.

Rights and responsibilities of investors

Investor Rights

The right to get:


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The best price Proof of price/brokerage charged Your money/ shares on time Shares through auction where delivery is not receivedamount Square up amount where delivery not received in auction Statement of accounts from trading member The right for redressal against Fraudulent price Unfair brokerage Delay in receipt of money or shares Investor unfriendly companies

Investor Obligations

The obligation to:

Sign a proper member constituent agreement Possess a valid contract or purchase/sale note Deliver securities with valid documents and proper signatures The obligations to ensure To make payment on time To deliver shares on time To send securities for transfer to the company on time Forwarding all the papers received from the company under objections to the

broker on time


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Indian capital market since independence

Before independence, the capital market was not properly developed. As very

few companies engaged in the trading in the stock market thus the growth of

industrial securities market was very much limited. Most of British Companies in

India had then base in London capital market, instead of Indian capital market.

After independence, the Indian Capital market started to enlarge its

activity with increase in the volume of savings and investment in the economy

particularly since 1951. One of the important indi cators of the growth of Indian

capital market is the expansion and growth of corporate enterprises. In India total

number of public limited and pvt. limited companies has increased from 28500 in

1951 to 50000 in 1990 and their total paid up capital has also increased from Rs

775 crore in 195,1 to Rs. 20000 crore in 1990, another pointes the volume of

investment has also grown in years.

Assessment of Performance of Indian Securities Market during 2000-2010

Parameters Compound annual growth

Rate(2000-2010)

Resource Mobilisation in Primary Markets 17.15%

Resource mobilization through Euro Issues 43.89%

All-India Market Capitalisation 23.15%

All-India Equity Market Turnover 19.94%

All-India Equity derivatives turnover 132.19%

Assets under Management of Mutual Funds 18.99%

Net Investments by Foreign Institutional 30.53%


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Investors

Net Investments by Mutual Funds 54.07%

Returns on Nifty 13.13%

SEGMENTS OF STOCK MARKET

PRIMARY MARKET SEGMENT

SECONDARY MARKET SEGMENT


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PRIMARY MARKET

Provides channel for sale of new securities. Issue the securities at face value or at a

discount/ premium. Issuance is done either through public/ private placement

Features of primary markets are:

This is the market for new long term capital. The primary market is the market

where the securities are sold for the first time. Therefore it is also called the new issue

market (NIM).

In a primary issue, the securities are issued by the company directly to investors.

The company receives the money and issues new security certificates to the

investors.

Primary issues are used by companies for the purpose of setting up new business

or for expanding or modernizing the existing business.

The primary market performs the crucial function of facilitating capital formation

in the economy. The new issue market does not include certain other sources of new long term

external finance, such as loans from financial institutions. Borrowers in the new issue

market may be raising capital for converting private capital into public capital; this is

known as "going public."

The financial assets sold can only be redeemed by the original holder


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Methods of issuing securities in the primary market are:

KINDS OF ISSUE

PublicIssue

Initial PublicOffering (for listed

companies)

Further publicoffering (for

unlistedcompanies)

RightsIssue

PrivatePlacement

Private Placement(for unlistedcompanies)

Preferentialissue(for listed

companies)

QuallifiedInstitutional

Placement (forlisted comapniies)


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BOOK BUILDING IN INDIA

Parties associated are the issuer company, the Book Runner Lead Manager (BRLM) and

the syndicate members


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INVESTMENTS IN IPOS IN THE INDIAN CAPITAL MARKET

The existence of the phenomenon of underpricing is a well-established fact for the

common stock initial public offerings (IPOs). Research concerning the primary capital

market is found to be unequivocal in its conclusion that initial public offerings are offered

at a discount. It has been found that an average firm goes public with an offer price that is

lower than the price that prevails in the immediate aftermarket. As a result, IPOs register

significant excess returns on the first day of trading. Under pricing is a phenomenon that

is largely restricted to the opening transaction. And hence, the under pricing is almost

entirely corrected by the market at the opening transaction. A worldwide survey of

literature on the phenomenon of Under pricing of IPOs exhibit three fundamental

characteristics:


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(a) The initial price reaction phenomenon or in other words under pricing: the

immediate after market price, on average is significantly higher than price at which the

initial offer was made;

(b) The Hot Issue Phenomenon: there are distinct cycles outlined, both in the number of

issues that come to the market and the level of initial price reactions;

(c) The long-run Underperformance phenomenon: initial offers are said to perform

dismally in the long-run compared to the industry counterparts for the same period.

Studies on the Indian capital market also confirm the phenomenon of under pricing of

IPOs. Most of the Studies on the Indian primary market concerning the phenomenon of

under pricing are found to be in the post-liberalisation period i.e. after the abolition of

the CCI. The initial excess return on IPOs in the Indian primary capital market are very

high as compared to the experience of the capital markets of countries abroad.

Significant Developments in IPO Markets

The world financial markets (USA & UK) have come a long way. In the US markets, the

IPO market has grown manifold in number and volume. The NYSE and the AMEX did

not allow for transactions in equity securities of small companies. Smaller companies,

that naturally imply smaller trading volumes, led to the development of a separate market

to foster dealing of securities of these companies. The NASD, therefore, established the

market for securities in the year 1971. There was demand for capital from the high

growth-high risk medium sized companies. The expansion of the market for IPOsindicates that this expectation has, by and large, been fulfilled.

In the UK capital market, the Big Bang (1985) constituted a fundamental revolution for

the LSE. Post Big Bang, the daily turnover in equities almost doubled in value and in

volume of transactions; the average rates of commission came down for almost all


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clients, particularly for institutional investors; though, for small deals, the small investor

lost out.

The Big Bang brought about fundamental changes on the securities market, changing

every aspect of the market: the participants, the transactions, the competition factor and

of course, the gains. The initiation of the process of reform in India also would not have

been possible without changes in the regulatory framework. The New Economic policy

(1991) led to a major change in the regulatory framework of the capital market in India.

The Capital Issues (Control) Act 1947 was repealed and the Office of the Controller of

Capital Issues (CCI)

was abolished. The Securities and Exchange Board of India (SEBI), established in 1988

and armed with statutory powers in 1992, came to be established as the regulatory body

with the necessary authority and powers to regulate and reform the capital market. The

Controller of Capital Issues (CCI) has been the regulatory body for the Indian capital

market for over fifty years. The CCI has had a strong control over the Indian capital

market as a regulatory authority. Guidelines for issue of capital and pricing of securities

has been rigid. SEBI came to be recognized as a regulatory body for the capital market

after the abolition of the CCI. The control on pricing of capital issue has been abolished

and easy access is provided to the capital market. The objectives of the SEBI are: (i) To

protect the interest of the investors

(ii) To promote and develop the capital market and

(iii) To regulate the securities market. SEBI is set up on the lines of the SEC in the US

and the SIB in the UK. The SEBI has taken over all the functions of the Office of the

Controller of Capital Issues.

This paper aims

(1) To look at the behaviour of IPOs in the primary capital market in the pre and post

Liberalization Era:

(a) Extent of under pricing during the CCI & SEBI times and

(b) The influence on returns considering various factors such as Issue Size, Age,

Foreign Equity, Issue Rating, and Issued Capital.


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(2) To assess the long-run performance of IPOs for a period of five years after listing &

Performance of IPO vis--vis Stock Index & Industry Index

Behaviour of IPOs

Issue Price:

A negative relationship exists between return on listing and the issue price

i.e. lower the issue price higher is the return accrued. The relationship is found to be

statistically significant (0.01level). R2 is found to be low. Issue price is one of the factors

to influence return, but it is not the only factor.

Issue Size:

There is a negative relation that exists between return on listing and the issue

size. However, the relationship is found to be statistically significant at 10% level.

Return is found to be higher in case of small-size issues in comparison to large-size

issues. There is a gradual fall in the initial return on listing across issue-size. Initial

return on listing is as high as 226.1% for issue-size of less than 1 crore and as low as

36.4% for issue-size more than 50 crores.

Age of the Company:

There is a negative relation that exists between return on listing and the age of the

company at the time of issue. The relationship is found to be statistically significant (0.01

level). In both the cases: return on listing and daily return, a chi-square test indicates of a

strong influence of age on the initial returns. The results are found to be significant (0.01

level).

Foreign Equity:

A positive relation is established between return on listing and the foreign equity holding

present in the total equity of the company. The relationship is found to be statistically

significant (0.03 level). Return are found to be higher for the companies with foreign


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equity holding of 26% & above; and very low in case of the companies with foreign

equity holding of below 26%.

Issue Rating:

There is a positive relation that exists between return on listing and the issue rating for

the said initial public offer made by the company. The relationship is found to be

statistically significant (0.01 level). The issue rating assigned to the IPO is found to

significantly influence the initial return on the IPO. A high rating assigned to the initial

public offer is found to be significantly influence the return on listing.

Issued Capital:

There is a negative relation that exists between return on listing and the issued capital of

the company at the time of issue. The relationship is found to be statistically insignificant.

List Delay:

The average time taken for listing is 125 days; almost 68% of the IPOs got listed within

this time frame. The minimum time taken for listing is 11 days while the maximum is

888 days. Listing delay and the return on listing exhibit a negative relation; i.e. less the

amount of time taken to list at the stock exchange, higher is the initial return. The

relationship is found to be statistically significant (0.01 level).


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Resource Mobilisation by Government and Corporate Sector

Issues (Rs) ($)

2010-11 2011-12 2010-11 2011-12

Corporate Securities 2222040 3838912 43612 85045

Domestic Issues 2174160 3679242 42672 81507

-Public Issues 146710 254790 2879 5644

-Private Issues 2027450 3424452 39793 75863

Euro Issues 47880 159670 940 3537

Government Securities 4366880 623190 85709 138152

-Central Government 3185500 4924970 62522 109104

-State Government 1181380 1311220 23187 29048

TOTAL 6588920 10075102 129321 223197


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SECONDARY MARKET

The secondary market, also known as the aftermarket, is the financial market

where previously issued securities and financial instruments such as stock, bonds,

options, and futures are bought and sold.

With primary issuances of securities or financial instruments, or the primary market,

investors purchase these securities directly from issuers such as corporations issuing

shares in an IPO or private placement, or directly from the federal government in the case

of treasuries. After the initial issuance, investors can purchase from other investors in the

secondary market. The secondary market for a variety of assets can vary from fragmented

to centralized, and from illiquid to very liquid. The major stock exchanges are the mostvisible example of liquid secondary markets - in this case, for stocks of publicly traded

companies.

Functions of secondary market

Secondary marketing is vital to an efficient and modern capital market. In the

secondary market, securities are sold by and transferred from one investor or speculator

to another. It is therefore important that the secondary market be highly liquid.

Constituents of capital market

1. Stock Exchanges.2. Merchant Banks.3. Underwriters.4. Stock Brokers and Sub Brokers.5. Custodians.6. Depositories and Depository Participants.7. Financial Institutions.8. Investors etc.


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Market participants

Issuer of securities. Investors of securities Intermediaries. Stock market products.

Role of capital market

The primary role of the capital market is to raise long-term funds for governments,

banks, and corporations while providing a platform for the trading of securities.

This fundraising is regulated by the performance of the stock and bond markets within

the capital market. The member organizations of the capital market may issue stocks and

bonds in order to raise funds. Investors can then invest in the capital market by

purchasing those stocks and bonds.

The capital market, however, is not without risk. It is important for investors to

understand market trends before fully investing in the capital market. To that end, there

are various market indices available to investors that reflect the present performance of

the market.

Raising funds

The primary role of the capital market is to raise long-term funds for governments, banks,

and corporations while providing a platform for the trading of securities. This fundraising

is regulated by the performance of the stock and bond markets within the capital market.

The member organizations of the capital market may issue stocks and bonds in order to

raise funds. Investors can then invest in the capital market by purchasing those stocks and

bonds.

Economic growth and Development of capital market


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Economic growth

An efficient capital market is an essential perquisite of economic

development. The capital market fosters the economic growth to the extent that

it:-

1. Increases the quantities of real savings and capital formation from any

given level of national income.

2. Increases the net capital inflow from abroad.

3. Raises the productivity of investment by improving allocation investible

funds.

Economic development

Capital markets play an important role in the economic development of emerging capital

markets. Well functioning markets insure that both corporations and investors get or

receive fair prices for their securities. This ensures that valuable projects will be financed

and negative value projects will be rejected. Most importantly, we argue that integration

into world capital markets will accelerate the growth process. A country that erects to

international participation will face a higher cost of capital. This discourages domestic

investment and diminishes foreign direct investment.

Act as backbone to investment

Capital market acts as a backbone to an investment banking system where the presences

of developed primary and secondary markets are the vehicle for raising the required

financing. Therefore, an investment bank with the assistance of a developed capital

market offers low-cost financing solutions for companies, enabling clients to access the

capital markets, with minimum market disruption.

Mobilizing domestic resources


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Capital market plays a crucial role in mobilizing domestic resources and in channeling

these efficiently to the most productive investments. The level of capital market

development is thus an important determinant of a countrys level of savings, efficiency

of investment and ultimately of its rate of economic growth. An efficient capital market

can also provide a range of attractive opportunities to both domestic and foreign

individual and institutional investors.

Offers an entity to many choices

A fully developed capital market offers an entity many choices for fund raising. Products

like commercial paper, convertible bonds, and quasi debt and equity offerings cannot be

launched unless we have an enabling environment under an efficient capital market. Thus

the development of Investment Banking System is directly dependent on the existence of

a developed capital market.

Act as a catalyst

It is an important and efficient conduit to channel and mobilize funds to enterprises, and

provide an effective source of investment in the economy. It plays a critical role in

mobilizing savings for investment in productive assets, with a view to enhancing a

countrys long-term growth prospects, and thus acts as a major catalyst in transforming

the economy into a more efficient, innovative and competitive marketplace within the

global arena.

Provides medium for risk management

In addition to resource allocation, capital markets also provide a medium for risk

management by allowing the diversification of risk in the economy. A wellfunctioning

capital market tends to improve information quality as plays a major role in encouraging

the adoption of stronger corporate governance principles, thus supporting a trading

environment, which is founded on integrity.

Industrial revolution

Capital market has played a crucial role in supporting periods of technological progress

and economic development throughout history. Among other things, liquid markets make


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it possible to obtain financing for capital-intensive projects with long gestation periods.

This certainly held true during the industrial revolution in the 18th century and continues

to apply even as we move towards the so-called New Economy.

The existence of deep and broad capital market is absolutely crucial and critical in

spurring the growth our country. An essential imperative for India has been to develop its

capital market to provide alternative sources of funding for companies and in doing so,

achieve more effective mobilization of investors savings. Capital market also provides a

valuable source of external finance.

For a long time, the Indian market was considered too small to warrant much

attention. However, this view has changed rapidly as vast amounts of international

investment have poured into our market over the last decade. The India market is no

longer viewed as a static universe but as a constantly evolving market providing

attractive opportunities to the global investing community.

Now during the present financial crisis, we saw how capital market stood still as the

symbol of better risk management practices adopted by the Indians. Though we observed

a huge fall in the sensex and other stock market indicators but that was all due to low

confidence among the investors. Because balance sheet of most of the INDIAN

companies listed in the sensex were reflecting profit even then people kept on

withdrawing money.

Nature of Indian capital market

The capital market in India can be classified into two categories namely:-

1) Organized sector

2) Unorganized Sector


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In the Organized sector, the demand for capital comes mostly from corporate

enterprises and government and semi government institution and the supply

comes from household savings, institutional investors like banks, investment

trusts, insurance companies, Finance corporations, Government etc.

The unorganized sectorconsists of indigenous bankers and moneylenders on the

supply side and demand for funds is mostly for consumption purposes. In this

market the rate of interest charged by lenders is exorbitant.

Indian Capital Market System and Capital Market Structure of India

Indian Capital Market System is the key structure to all Economic and Financial

transaction in India. This entry provides some simple and important organizational

structure details of Capital Market organization structure of India.

Capital Market System and Structure in India

Structure Institution

Government

Securities

Government securities market. Reserve Bank of India (RBI) controls

all transactions of government securities,
http://www.marketriser.com/2011/05/indian-capital-market-system-and.htmlhttp://www.rbi.org.in/http://www.rbi.org.in/http://www.marketriser.com/2011/05/indian-capital-market-system-and.html


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Industrial

Securities

Industrial securities divided into Primary market (New issues like

IPO) and Secondary market (Market for trading the Equity shares

through stock exchange). Popular national level stock exchanges in

India, National Stock Exchange (NSE) and Bombay Stock Exchange

(BSE).

Development

Financial

Institutions (DFI)

Financial institutions provide financial aid to develop special sectors.

Financial institutions like IFCI ( Industrial Finance Corporation of

India ), ICICI ( Industrial Credit and Investment Corporation of

India), SFC ( State Finance Corporations ), IDBI ( Industrial

development Bank of India ), UTI ( Unit Trust of India ), etc.

Financial

Intermediaries

All other state controlled finance intermediaries like, Merchant

banking, Mutual funds, Leasing finance companies, Venture capital

funds, etc.

Indian capital market institutions

1 Commercial banks in India.2 Insurance companies like LIC and GIC have also attained

growing importance in Indian capital market and are mostly

investing in government securities.

3 Various special institutions like IDBI, IFCI, ICICI, UTI etcgiving long form capital to the private sector of the country.

Investment choices in securities market

Securities is defined in the Securities Contracts (Regulation) Act, 1956

It includes

Shares, scrips, stocks, bonds, debentures, debenture stocks or othermarketable securities
http://www.nseindia.com/http://www.bseindia.com/http://www.bseindia.com/http://www.ifciltd.com/http://www.ifciltd.com/http://www.utimf.com/http://www.utimf.com/http://www.ifciltd.com/http://www.ifciltd.com/http://www.bseindia.com/http://www.bseindia.com/http://www.nseindia.com/


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Derivative Government Securities Mutual Funds etc.

Shares

Equity Shares- ownership interest in a company of holders

Holders of shares are members of company and have voting rights

Various kinds of equity shares

Right shares, bonus shares, preferred shares etc.

Mutual funds

Pooling of resources by issuing units to the investors

Profit and loss shared by investors in proportion to the investment

Set up in the form of a trust and has a sponsor, trustees, asset management

company and custodian.

DerivativesDerivative means a forward future, option or any other hybrid contract of pre

determined fixed duration

Included in the definition of securities with Securities Laws (Second

Amendment) Act, 1999

Factors affecting capital market in India

The capital market is affected by a range of factors. Some of the factors which

influence capital.

Market are as follows:-


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A) Performance of domestic companies:-

The performance of the companys or rather corporate earnings is one of the factors

Which has direct impact or effect on capital market in a country. Weak corporate

earnings indicate that the demand for goods and services in the economy is less due to

slow growth in per capita income of people. Because of slow growth in demand there is

slow growth in employment which means slow growth in demand in the near future.

Thus weak corporate earnings indicate average or not so good prospects for the economy

as a whole in the near term. In such a scenario the investors (both domestic as well as

foreign ) would be wary to invest in the capital market and thus there is bear market like

situation. The opposite case of it would be robust corporate earnings and its positive

impact on the capital market.

The corporate earnings for the AprilJune quarter for the current fiscal has been good.

The companies like TCS, Infosys,Maruti Suzuki, Bharti Airtel, ACC, ITC,

Wipro,HDFC,Binani cement, IDEA, Marico Canara Bank, Piramal Health, India cements

, Ultra Tech, L&T, Coca-Cola, Yes Bank, Dr. Reddys Laboratories, Oriental Bank of

Commerce, Ranbaxy, Fortis, Shree Cement ,etc have registered growth in net profit

compared to the corresponding quarter a year ago. Thus we see companies from

Infrastructure sector, Financial Services, Pharmaceutical sector, IT Sector, Automobile

sector, etc. doing well . This across the sector growth indicates that the Indian economy is

on the path of recovery which has been positively reflected in the stock market ( rise in

sensex & nifty) in the last two weeks. (July 13-July 24).

B) Environmental Factors:-

Environmental Factor in Indias context primarily means- Monsoon. In India around

60 % of agricultural production is dependent on monsoon. Thus there is heavy

dependence on monsoon. The major chunk of agricultural production comes from the

states of Punjab, Haryana & Uttar Pradesh. Thus deficient or delayed monsoon in this


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part of the country would directly affect the agricultural output in the country. Apart from

monsoon other natural calamities like Floods, tsunami, drought, earthquake, etc. also

have an impact on the capital market of a country.

The Indian Met Department (IMD) on 24th June stated that India would receive only 93

% rainfall of Long Period Average (LPA). This piece of news directly had an impact on

Indian capital market with BSE Sensex falling by 0.5 % on the 25th June . The major

losers were automakers and consumer goods firms since the below normal monsoon

forecast triggered concerns that demand in the crucial rural heartland would take a hit.

This is because a deficient monsoon could seriously squeeze rural incomes, reduce the

demand for everything from motorbikes to soaps and worsen a slowing economy.

C) Macro Economic Numbers:-

The macroeconomic numbers also influence the capital market. It includes Index of

Industrial Production (IIP) which is released every month, annual Inflation number

indicated by Wholesale Price Index (WPI) which is released every week, Export Import

numbers which are declared

every month, Core Industries growth rate ( It includes Six Core infrastructure industries

Coal, Crude oil, refining, power, cement and finished steel) which comes out every

month, etc. This macro economic indicators indicate the state of the economy and the

direction in which the economy is headed and therefore impacts the capital market in

India.

A case in the point was declaration of core industries growth figure. The six Core

Infrastructure Industries Coal, Crude oil, refining, finished steel, power & cement

grew 6.5% in June, the figure came on the 23 rd of July and had a positive impact on the

capital market with the Sensex and nifty rising by 388 points & 125 points respectively.


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D) Global Cues:-

In this world of globalization various economies are interdependent and

interconnected. An event in one part of the world is bound to affect other parts of the

world; however the magnitude and intensity of impact would vary.

Thus capital market in India is also affected by developments in other parts of the world

i.e. U.S. , Europe, Japan , etc. Global cues includes corporate earnings of MNCs,

consumer confidence index in developed countries, jobless claims in developed countries,

global growth outlook given by various

Agencies like IMF, economic growth of major economies, price of crude oil, credit

rating of various economies given by Moodys, S & P, etc.

An obvious example at this point in time would be that of subprime crisis & recession.

Recession started in U.S. and some parts of the Europe in early 2008 .Since then it has

impacted all the countries of the world- developed, developing, less- developed and even

emerging economies.

E) Political stability and government policies:-

For any economy to achieve and sustain growth it has to have political stability and

pro- growth government policies. This is because when there is political stability there is

stability and consistency in governments attitude which is communicated through

various government policies. The vice- versa is the case when there is no political

stability .So capital market also reacts to the nature of government, attitude of

government, and various policies of the government.

The above statement can be substantiated by the fact the when the mandate came in UPA

governments favor ( Without the baggage of left party) on May 16 2009, the stock

markets on Monday , 18th May had a bullish rally with Sensex closing 800 point higher


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over the previous days close. The reason was political stability. Also without the

baggage of left party government can go ahead with reforms.

F) Growth prospectus of an economy:-

When the national income of the country increases and per capita income of people

increases it is said that the economy is growing. Higher income also means higher

expenditure and higher savings. This augurs well for the economy as higher expenditure

means higher demand and higher savings means higher investment. Thus when an

economy is growing at a good pace capital market of the country attracts more money

from investors, both from within and outside the country and vice -versa. So we can say

that growth prospects of an economy do have an impact on capital markets.

G) Investor Sentiment and risk appetite:-

Another factor which influences capital market is investor sentiment and their risk

appetite .Even if the investors have the money to invest but if they are not confident

about the returns from their investment, they may stay away from investment for some

time. At the same time if the investors have low risk appetite , which they were having in

global and Indian capital market some four to five months back due to global financial

meltdown and recessionary situation in U.S. & some parts of Europe , they may stay

away from investment and wait for the right time to come .

H) Liquidity

Liquidity is one of the factors, which leads to growth of capital market.

Liquid equity markets make investments less risky and more attractive because

they allow serves to acquire an asset-equity easily and sell it cheaply and


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quickly. Also companies can enjoy permanent access to capital raised through

equity issues. In brief, liquid markets encourage investments because "Investors

will come if they can leave".

J) Increasing awareness of investment opportunities

The improvement in education and communication has created

more public awareness about the investment in the business sector.

Capital marketefficiency

An efficient capital market is a market where the share prices reflect new information

accurately and in real time.

Capital market efficiency is judged by its success in incorporating and inducting

information, generally about the basic value of securities, into the price of securities. This

basic or fundamental value of securities is the present value of the cash flows expected in

the future by the person owning the securities.

The fluctuation in the value of stocks encourage traders to trade in a competitive

manner with the objective of maximum profit. This results in price movements towards

the current value of the cash flows in the future. The information is very easily available

at cheap rates because of the presence of organized markets and various technological

innovations. An efficient capital market incorporates information quickly and accurately

into the prices of securities.

In the weak-form efficient capital market, information about the history of previous

returns and prices are reflected fully in the security prices; the returns from stocks in this

type of market are unpredictable.

In the semi strong-form efficient market, the public information is completely reflected in

security prices; in this market, those traders who have non-public information access can

earn excess profits.

In the strong-form efficient market, under no circumstances can investors earn excess

profits because all of the information is incorporated into the security prices.


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The funds that are flowing in capital markets, from savers to the firms with the aim of

financing projects, must flow into the best and top valued projects and, therefore,

informational efficiency is of supreme importance. Stocks must be efficiently priced,

because if the securities are priced accurately, then those investors who do not have time

for market analysis would feel confident

about making investments in the capital market.

Eugene Fama was one of the earliest to theorize capital market efficiency, but

empirical tests of capital market efficiency had begun even before that.

Investment strategies

1. Systematic Investment Plan: under this a fixed sum is invested each month on

a fixed date of a month. Payment is made through post dated cheques or direct

debit facilities. The investor gets fewer units when the NAV is high and more

units when the NAV is low. This is called as the benefit of Rupee Cost Averaging

(RCA)

2. Systematic Transfer Plan: under this an investor invest in debt oriented fund

and give instructions to transfer a fixed sum, at a fixed interval, to an equity

Scheme of the same mutual fund.

3. Systematic Withdrawal Plan: if someone wishes to withdraw from a mutual

fund then he can withdraw a fixed amount each month.


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Reforms of capital market

Open Outcry System:

Open outcry involves shouting and the use of hand signals to transfer information

primarily about buy and sell orders.

The part of the trading floor where this takes place is called a pit.

Screen Based Trading

NSE introduced a nation-wide on-line fully-automated screen based trading system

(SBTS)- Replaced open outcry system

On-Line & Real time trading is fully automated.

Broken the barriers of distance.

Persons sitting far away can access to same system as sitting in S.E

It allows large number of participants to trade with one another simultaneously

Improves liquidity in the market

Checks unfair trade practices

Dematerialization

Investors can get physical certificates converted into electronic form maintained in an

account with the Depository Participant.

It eliminates the risk of bad deliveries


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Stock exchange board of India (SEBI )- the regulator

It regulates the business in stock exchanges and any other securities marketSEBI promotes investors education and training of intermediaries of securities

market.

It prohibits fraudulent and unfair trade practices relating to securities markets, and

insider trading in securities

Capital market division

Amendment to the "Issue of Foreign Currency Convertible Bonds and Ordinary Shares

(Through Depositary Receipt Mechanism) Scheme, 1993" Foreign Currency Convertible

Bonds and Ordinary Shares (Through Depositary Receipt Mechanism) (Second

Amendment) Scheme, 2005

Functions of the capital market division

The principal subjects dealt with in the Capital Market Division are the following:

Policy matters relating to the securities markets;

Policy matters relating to the regulation and development of the securities markets and

investor protection, including Debt Market

Organizational and operational matters relating to SEBI.

The Acts/Rules being administered by Capital markets Division are: -

Securities and Exchange Board of India Act, 1992 and rules made there under;

Securities Contracts (Regulation) Act, 1956 and rules made there under;


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Depositories Act, 1996 and Rules made there under;

The Capital markets division has been entrusted primarily with the responsibility of

assisting the Government in framing suitable policies for the development of the stock

market in consultation, inter-alia, with SEBI, RBI and other agencies. It acts as the

Secretariat for the High Level Coordination Committee on Financial and Capital. The

Stock Exchange Section is also represented on the Secondary Market Advisory

Committees of SEBI. Inputs regarding policy issues related to the capital market are

provided through these channels.

High Level Coordination Committee on Financial and Capital Markets (HLCCFCM)

HLCCFCM is the forum to deal with inter-regulatory issues arising in the financial and

capital markets as India follows a multi-regulatory regime for financial sector. The

Capital Market Division functions as the Secretariat of this Committee. Joint Secretary

(CM, ECB & PR) is also the convener of the HLCCFM to examine capital market policy

issues as required, put together the agenda for HLCCFM meetings and follow up on its

decisions.

Challenges

Education of Investors:

As new instruments likes derivates are being introduced in the market, the emphasis on

investor education should also be enhanced.

2) Accounting and financial reporting norms: Financial

disclosure requirements in India are not at par with international accounting practices in

spite of attempts made by the institute of chartered accountants of India.

3) Corporate Governance:

With sophistication in the market place, demand for improved corporate governance by

public companies will also increase. Ensuring high confidence of the investors in the

business so as to improve investment levels through good governance is must.


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4) Technology:

Regulators most keep up with the sophistication in market technology and new market

structure. As market manipulation and cyber crimes are increasing. A system ensuring

close observation against cyber crime should be updated from time to time.

Integration with other financial markets:

The adoption of international best practices, sharing information with the regulatory

bodies globally and co-operation with international bodies is important. Global bench-

marks should be adopted to remove weaknesses in market difficulties in surveillance and

increase investor risk aversion.

Indian brokerages must be strengthen as despite the growth of market, there hasn't

been enough consolidation within the stock broking community to create large and

effective broking houses which can fight in market place. The three fourth of NSEs total

turnover comes from just three centers, brokers have no idea how to widen their reach to

touch

FINDINGS

The share of resource mobilization has tremendously increased from the year2000 to 2010

The compound annual growth of All India Market Capitalization has increased Net investments from foreign institutional investors has show an increments It has been found that mainly all the companies are using this book building

process which has been evaluated

Corporate Securities resource mobilization has shown a positive growth withrespect to International market

In Domestic Issues mainly Private issues has taken over the Public issues


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In case of Government securities, Central Government has show better results ascompared to the state Government resource mobi

FORMULATE HYPOTHESIS

Types of Hypothesis

1. Null Hypothesis2. Alternative Hypothesis3. Working Hypothesis

Null Hypothesis

There is no difference between M one and M two. In which

hypothesis tested for possible rejection is known as null hypothesis.

Alternative Hypothesis

It is denoted by Ha. It is desirable to formulate several

hypothesis in beginning and then to select one that explain the phenomena.

Working Hypothesis

It is hypothesis which is provisionally adopted to explain

certain facts and to guide a researcher in the investigation of other.

I used null hypothesis for preparing my research report capital markit of HCL .


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CONCLUSON

To sum up , It can be conclude that in last 10 year the Indian Capital Market has shown a

tremendous growth in all the major sectors. On the other hand the Foreign Institutional

Investors and foreign direct investment has very much increased. As the number of

foreign institutional investors registered with the SEBI rose from none in 1992-93 to 528

in 2000-01, to about 1000 in 2010-11 and now it is more increased by numbers.

Earlier Government was not one the major player but now the scenario has been changed

and Government has taken up the capital market into consideration.

The last decade (2011-12) was probably one of the best for the Indian capital markets,

even a shade betterthan the 90s decade which actually established the base for the 00s

decade through economic liberalization.

The performance of the Indian capital market has been impressive with high returns and a

high level of investment from both domestic and foreign investors. On the other hand,

Indias debt market, particularly the corporate bond market is still underdeveloped. Of

late, efforts have been made to bring regulatory changes to develop the corporate bond

market. However, sustained effort and long-term commitment are needed to realize thetrue potential of this segment. The growth of Indias derivatives market has been

significant but needs to develop further in terms of products and investor base

Running a successful Mutual Fund requires complete understanding of the

peculiarities of the Indian Stock Market and also the psyche of the small investors. This

study has made an attempt to understand the financial behavior of Mutual Fund investors

in connection with the preferences of Brand (AMC), Products, Channels etc. I observed

that many of people have fear of Mutual Fund. They think their money will not be secure

in Mutual Fund. They need the knowledge of Mutual Fund and its related terms. Many of

people do not have invested in mutual fund due to lack of awareness although they have

money to invest. As the awareness and income is growing the number of mutual fund

investors are also growing.


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BIBLIOGRAPHYGoogle

Websites

www.hcl.co.in

www.nseindia.com

www.bseindia.com

www.sebi.gov.in

www.sbimf.com

www.moneycontrol.com
http://www.sbimf.com/http://www.moneycontrol.com/http://www.moneycontrol.com/http://www.sbimf.com/

Documents

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