8/6/2019 Viny Final Project
http://slidepdf.com/reader/full/viny-final-project 2/54
PCS SECURITIES LTD
What exactly is the finance and investment industry? It is a fairly broad ranging group
of institutions that provide various financial services. Examples of such institutions include
commercial banks, merchant (or investment) banks, insurance companies, brokerage firms,
asset managers, and an assortment of other institutions. Services provided range from money
management for private individuals to debt and equity underwriting for corporations to
insurance of insurance of policies, and many other services. In today’s global markets, this
industry is the engine of the global economy, enabling corporations and governments to grow
and expand.
The financial services industry includes firms that are engaged in activities such as investing,
lending, insurance, securities trading and securities insurance. This is not an exhaustive list,
but these companies can be characterized as being in one or more of the following lines of
business.
• Banking
• Insurance
• Securities brokerage
• Investment banking
• Securities trading
• Investment management or money management
• Securities analysis
• Financial planning
Investment industry in India:
Emerging strong even during the scariest phase of global financial meltdown, India has
become one of the favourite investment destinations for the foreign investors across the
globe. The investment scenario in India is getting better and better with each passing day dueto high confidence level of the investors. Today, India is considered the 4th biggest economy
in the world. Its impressive GDP rate, especially in the field of purchasing power, has
catapulted it to second position among all the developing nations. According to forecasts,
Indian economy will grow to become 70% in size of the economy of US... it will also witness
macro-level stability in economic conditions. Behind all this, investment can be said to be the
key player.
Warren buffet has always mentioned that investment in India should always be a long termstory – as the industry has been growing from an emerging market to a developed one. The
BIET-MBA PROGRAMME, Davangere. Page 2
8/6/2019 Viny Final Project
http://slidepdf.com/reader/full/viny-final-project 3/54
PCS SECURITIES LTD
next 10 years in India will surely give good returns. India’s GDP would be around 7% to 9%
in 2011. The sustainable growth rate of India would however over around 9% .before
becoming the mature economy, India has another 15 to 30 year spare.
Current investment scenario in India:Globalization and foreign direct investment from an integral part of all the developed as well
as developing economies. In fact, the growth of the underdeveloped economies is also
dependent on these key factors. These components equip any nations with new skills, new
items and provide smooth access to market and technology. Today, every nation across the
globe is looking for foreign and overseas investors. Whether it is India or china. Everyone
wants foreign investments.
According to recent trends, India is only second to china in the league of favourite investment
destinations.
In the report issued by department of industrial policy and promotion, the fund inflow to
India reached US$ 27.3 billion in the period 08-09, considered from the month of April 08 to
the month of March 09. Last quarter of 08-09 alone witnessed an inflow of approx. US$ 6.2
billion in the reports issued by RBI for outward investment from India; a growth of 29.6% to
US$ 17.4 billion has been seen in the period 07-08. The figures do not include individuals
and banks. India is considered the 2nd highest foreign employer in the United Kingdom after
the United States.
Global investment scenario:
Along with India, the others who are participating in the race of investment among the
developing economies are china, Singapore, Malaysia, Russia, and Brazil... Most of them are
vying for contacts from USA and Europe.
Indian Stock market:
A stock market or equity market is a public entity for the trading of company stock (shares)
and derivatives at an agreed price; these are securities listed on a stock exchange as well as
those only traded privately. Stock markets refer to a market place where investors can buy
and sell stocks. The price at which each buying and selling transaction takes is determined by
the market forces (i.e. demand and supply for a particular stock).
BIET-MBA PROGRAMME, Davangere. Page 3
8/6/2019 Viny Final Project
http://slidepdf.com/reader/full/viny-final-project 4/54
PCS SECURITIES LTD
The Indian Equity market is divided in to two parts Primary market - where the share is first
issued in the form of IPO (Initial Public Offering) and after issuing the share it is listed on
exchange and share is traded on exchange where shares can be bought and sold this is
secondary market. In India mainly there are two exchanges -NSE (National Stock Exchange)
BSE-Bombay Stock Exchange. The BSE is the oldest exchange in India(started in 1875).NSE
started operation on 1994.Before 2000 shares was held in Physical form But the main
difficulty with Physical shares is method of transaction which is open outcry system and
process is not transparent to investor also Physical shares were prone to duplication and
fraud. So in 2000 NSE introduced the electronic screen based trading system further the
introduction of Dematerializations (Conversion of physical share in to electronic form) and
depository(where the electronic form of share is kept) revolutionized the Indian Stock
market. Currently there are mainly two Depository (DP) -NSDL and CDSL and these DP are
like bank of share. Individual/Firm can deal through Broker (who is registered and having
membership in Exchanges and Depository) for buying and selling securities. Today NSE
outpaced BSE in volume of trade. Then what is the purpose of stock market? Stock market
serves the company by providing company the finance for long term needs and for investor
an opportunity to park their savings in corporate world and in turn give their hand in Nation's
development so stock exchange have a very vital role in country's economic development.
To buy the shares investor has to open a trading and demat account. So investor has toapproach a broker/sub broker who has member ship in Exchange (where the share is listed
mainly NSE and BSE) and depository (where share is kept in Demat form-Electronic form
[mainly CDSL and NSDL).
SENSEX and NIFTY are Index of BSE and NSE Blue chip share. SENSEX consist of 30
share and NIFTY 50 share(of top most companies) Index is the barometer of stock exchange
forex in NSE there are about 1350 listed companies listed and we cannot say in general form
market was up or down without fully looking all companies. INDEX serves this purpose.
INDEX is constructed by taking top companies across different sector in different weightage
and INDEX movement will reflect the overall movement of market. So if NIFTY or
SENSEX is up we can generally assume market was up (does not mean all shares was up)
and vice versa. Now there are index in some sectors which can catch the movement of that
sector like CNXIT-IT sector, BANKNIFTY-Banking sector etc. General purpose of Stock
Market is for Investment but bulk of activities done in market is day trading. Day trading
means BUYING/SELLING of shares and offsetting the position on same day. Day traders
BIET-MBA PROGRAMME, Davangere. Page 4
8/6/2019 Viny Final Project
http://slidepdf.com/reader/full/viny-final-project 5/54
PCS SECURITIES LTD
serves the purpose of bringing the liquidity to market and they help the market movement and
more than 80% of the volume from market is coming from day trading
Introduction of derivative market had made the day trading to grow more and introduction of
advanced day trading technique. The main tool for Stock market investment/trading are
Fundamental analysis -which studies about the fundamental of companies and economy and
Technical Analysis-which studies the market by analyzing the past movement of share and
market.
2. COMPANY PROFILE
PCS Securities Ltd. adds the dynamic growth factor to the savings and investments by
guiding through the land of opportunities and maximizing the returns. PCS is a fourth
generation stock broking powerhouse - one among the top 100 national brokerage firms in
India
and has served thousands of investors over the past six decades. PCS is now present at over
340 locations across the Nation and one of the top CDSL Participants in South India.
PCS Securities Ltd. adds the dynamic growth factor to your savings and investments by
guiding you through the land of opportunities and maximizing your returns. PCS is a fourth
generation stock broking powerhouse - one among the top 100 national brokerage firms in
India and has served thousands of investors over the past six decades. PCS is now present at
over 340 locations across the Nation and one of the top CDSL Participants in South India.
PCS has always been a pioneer in adopting newer technologies to increase efficiencies in providing state-of-the-art software to customers like SMS Alerts to customers notifying
BIET-MBA PROGRAMME, Davangere. Page 5
8/6/2019 Viny Final Project
http://slidepdf.com/reader/full/viny-final-project 6/54
PCS SECURITIES LTD
balances, “Market In Your Pocket” - Live quotes and charts delivered directly to your mobile
phone, a robust Intranet based software for PCS dealers to enable instant communication and
accurate information…Life only gets easier with PCS on your side.
2.1 BACKGROUND AND INCEPTION OF THE COMPANY
Today's world of advanced technology and blink-of-an-eye communication has opened a
magic box full of opportunities and wealth fulfilment formulae. PCS is here to offer you
some such opportunities which help you stretch your investment horizon and unleash
the true potential of your wealth.
PCS Securities Ltd. adds the dynamic growth factor to your savings and investments by
guiding you through the land of opportunities and maximizing your returns. PCS is a
fourth generation stock broking powerhouse - one among the top 100 national
brokerage firms in India and has served thousands of investors over the past six decades.
PCS is now present at over 340 locations across the Nation and one of the top CDSL
Participants in South India.
PCS was born out of the aspirations of Late Mr. K. C. Shrimal - founder member of
Hyderabad Stock Exchange - and nurtured through generations by Late Mr. S. C.
Shrimal and his son Mr. P. C. Shrimal, Promoter and Chairman of PCS Securities
Ltd., twice President of HSE, who has also served as the Chairman of the FISE -
Federation of Indian Stock Exchanges. He is currently assisted by his son, Mr. Prashant
Shrimal. The Board consists not only of the highly experienced generational hierarchy,
but also industry stalwarts with a wealth of expertise including Whole-time Director
Mr. Paresh Shah and Director Mr. Jagdish Ahuja (Ex-President, Bangalore Stock
Exchange).
PCS achieved yet another landmark and received industry recognition when it was
awarded “The Fastest Growing Equity Broking House (Mid-Size Firms) ’09 Award
presented by Dun & Bradstreet.
PCS has always been a pioneer in adopting newer technologies to increase efficiencies
in providing state-of-the-art software to customers like SMS Alerts to customers
notifying balances, “Market In Your Pocket” - Live quotes and charts delivered directly
to your mobile phone, a robust Intranet based software for PCS dealers to enable instant
communication and accurate information…Life only gets easier with PCS on your side.
BIET-MBA PROGRAMME, Davangere. Page 6
8/6/2019 Viny Final Project
http://slidepdf.com/reader/full/viny-final-project 7/54
PCS SECURITIES LTD
2.2 Nature of the business carried
PCS securities Ltd is one of the leading broking houses in India that provides a wide range of
services nationwide to a substantial and diversified client base that includes retail clients,
high net worth individuals, corporate and financial institutions. Founded in 1989 with just
DSE trading membership, we have come a long way since and are now members of all major
exchanges in India namely NSE, BSE, MCX, NCDEX, and NSE Currency & MCX-SX. In
addition to this, we are also a depository participant with NSDL.
We are committed to our distinctive culture and core values, which always place our client's
interests first. Our values emphasize integrity, transparency, commitment to excellence and
teamwork. We have more than 60,000 clients and a presence in more than 340 locations
through our network of longstanding franchisees and sub brokers. All our offices are
managed by qualified professionals and equipped with state of the art infrastructure (VSAT
connectivity, leased lines, internet connectivity, telephones, voice loggers, etc) to serve our
clients in the best possible manner.
2.3 VISSION, MISSION AND QUALITY POLICY
Vision:-
To be the most respected and investor-friendly financial powerhouses serving investor
through various markets across the nation”
Mission:-
To power your investment through superior information, technology and services, in order
to help maximize your wealth generation.
Quality policy:-
➢ They are committed to distinctive culture and core values, which always place
client’s interest first.
➢ Our values emphasize integrity, transparency, commitment to excellence and team
work.
2.4 Products / services profile
➢ Equity & Derivatives
BIET-MBA PROGRAMME, Davangere. Page 7
8/6/2019 Viny Final Project
http://slidepdf.com/reader/full/viny-final-project 8/54
PCS SECURITIES LTD
➢ Depository
➢ Currency Derivatives
➢ Commodities
➢ Mutual Funds
Equity & Derivatives
PCS Securities provides online/offline equity & derivative trading facilities for investors who
are looking for the ease and convenience and hassle free trading experience. Our state of the
art technology (fibre connections, VSAT network powered by Bharti, ODIN trading engine,
etc) ensure our clients the fastest and smoothest trade execution.
In addition to our research reports, you can access a multitude of resources like
➢ live quotes,
➢ charts,
➢ research,
➢ advice, and
➢ online assistance
Derivative products are structured in manner so as to curtail the risk exposure of an investor.
Index futures and stock options are instruments that enable you to hedge your portfolio or
open positions in the market. Option contracts allow you to ride your profits while at the
same time limit the downside risk.
Our Edge: Pan India Footprint (especially strong in North India)
News flow & distribution – We have our ears to the ground and make sure that we pass this
on to our local branches, associates and clients.
Integrity & Ethical Business Practices
Flexibility to trade anywhere/anytime (online/offline)
Depository:
PCS Securities Private Limited offers you depository accounts and dematerialization services
as a depository participant in NSDL. NSDL provides you a quick, secure and hassle free
alternative to holding the securities in physical form.
Facilities offered by us:
BIET-MBA PROGRAMME, Davangere. Page 8
8/6/2019 Viny Final Project
http://slidepdf.com/reader/full/viny-final-project 9/54
PCS SECURITIES LTD
➢ Live Online Back Office
➢ Dematerialization Services
➢ Inter and Intra depository transfer services
➢ Electronic execution of DIS slips
➢ Confirmation SMS’ from NSDL when stock moves in/out of your Depository
account.
Currency Derivatives
Currency trading was introduced in India in 2008 and is one of the fastest growing segments.
PCS Securities Private Limited is a member of both the currency exchanges - NSE Currency
as well as MCX-SX Currency. Our Edge:
➢ Pan India footprint
➢ Trade Equities and Currencies in the same account and hedge your foreign currency
exposure
➢ Online/Offline trading on ODIN as well as NOW (new NSEIT platform)
Commodities:
As a member of MCX & NCDEX, we provide online/offline commodities trading facilities
for investors who are looking for the ease and convenience and hassle free trading
experience. Our state of the art technology (fibre connections, VSAT network powered by
Bharti, ODIN trading engine, etc) ensure our clients the fastest and smoothest trade
execution.
Our Edge:
➢ Pan India footprint
➢ Ethical business practices
➢ Single Trading Platform (ODIN powered by Financial Technologies) for all your
Commodities trading
➢ Trade Anywhere & Anytime – Convenience of trading online from home or
calling/visiting a local office.
➢ Powerful research and analytics – Intraday trading tips on Yahoo Messenger & via
SMS
Mutual Funds
BIET-MBA PROGRAMME, Davangere. Page 9
8/6/2019 Viny Final Project
http://slidepdf.com/reader/full/viny-final-project 10/54
PCS SECURITIES LTD
Our Mutual Fund distribution division offers you the opportunity to diversify your investment
portfolio. Not only do we offer a choice of investment schemes from all major mutual fund
provides, we take this a step further by helping investors chose the best mutual fund based on
their investment needs.
Our Edge:
➢ Pan India Footprint (especially strong in North India)
➢ Schemes of all major fund houses available
➢ Access to latest news and Fund Manager view
2.5 Area of operation
PCS securities provide wide range activities nationwide to a substantial and diversified client
base that includes retail clients, high net worth individuals, corporate and financial
institutions. It has its presence in more than 340 locations through its network of longstanding
franchisee’s and sub brokers.
HEAD OFFICE:-
Pcs house, #3-1-336,Esamia Bazar,
Hyderabad – 500027
Tel:- +91 40 24656587, 30687711
Fax:-+91 40 24651079
Email:- pcssecurities.co.in
CORPORATE OFFICE
Kimtee square, road #12,
Banjara hills,
Hyderabad- 500034
Tel:- +91 40 66102247-52
Fax:- +91 40 23323895
Other locations
➢ Hyderabad
➢ Delhi
➢ Uttaranchal
BIET-MBA PROGRAMME, Davangere. Page 10
8/6/2019 Viny Final Project
http://slidepdf.com/reader/full/viny-final-project 11/54
PCS SECURITIES LTD
➢ West Bengal
➢ Haryana
➢ Himachal Pradesh
➢ Karnataka
2.6 OWNERSHIP PATTERN:-
PCS SECURITIES is a private limited company dealing in the stock broking. It was
promoted by a group of professionals. The founder members are
Name Designation
Prakash chandrashrimal
Chairman
Paresh shah Managing Director
Prashanth shrimal Vice chairman
Jagdish ahuja Independent Director
2.7 COMPETITORS INFORMATION:-
Religare Securities Ltd
Religare Securities Ltd. (RSL), a wholly owned subsidiary of Religare Enterprises Limited
(REL), a global financial services group is a market leading securities firm in India. The
company offers equity broking services to more than half a million clients using both, offline
and online platforms and also offers depository participant services.RSL is a member of the NSE, BSE, MCXSX, USE and a depository participant with NSDL and CDSL. RSL employs
more than 4800 employees and has a wide distribution reach that spans across more than
1500 location in India.
Motilal Oswal Securities Ltd
Motilal Oswal Securities Ltd. (MOSL) was founded in 1987 as a small sub-broking unit, with
just two people running the show. Focus on customer-first-attitude, ethical and transparent
business practices, respect for professionalism, research-based value investing and
BIET-MBA PROGRAMME, Davangere. Page 11
8/6/2019 Viny Final Project
http://slidepdf.com/reader/full/viny-final-project 13/54
PCS SECURITIES LTD
the branch and Internet, Investments in IPO, Mutual funds and Portfolio management service.
Kotak Securities has a full-fledged research division involved in Macro Economic studies,
Sectoral research and Company Specific Equity Research combined with a strong and well
networked sales force which helps deliver current and up to date market information and
news. Kotak `Securities’ network spans over 321 cities with 877 outlets, with an employee
workforce beyond 5100.
2.8 INFRASTRUCTURAL FACILITIES:-
• Vehicle parking facility for client and employee
•Free statement of account through mail
• Facility of separate computer is being given each staff
• Printer and phone facility to all branches
• All branches are computerize
2.9 Work flow model:
The work flow model is used to describe the trading, clearing, and settlement process of
equities trading in the market. It is also known as end to end model which is given below.
BIET-MBA PROGRAMME, Davangere. Page 13
8/6/2019 Viny Final Project
http://slidepdf.com/reader/full/viny-final-project 14/54
PCS SECURITIES LTD
3. THE MCKINSEY’S 7-S FRAME WORK IS SHOWN IN FIGURE:
BIET-MBA PROGRAMME, Davangere. Page 14
Custome
r
Opening of trading and D-mat
A/c
Delivery of trading kitDemonstration to the
customer
Receiving of order formPlacing the order in the
market
The client The dealerSellBuyPayment by
client
Transfer the amt to
seller’s broker
Dealer receives the delivery in
the name of the client from
the seller’s broker.
Sale of delivery shares from
the client by dealer
Receive amt of shares from
buyer broker
Deposit the
amt in the
seller’s d-mat
a/c
Delivery of
shares to the
buyer’s
broker
Transaction is settled
8/6/2019 Viny Final Project
http://slidepdf.com/reader/full/viny-final-project 15/54
PCS SECURITIES LTD
Strategy: the plan devised to maintain and build competitive advantage over the competition.
Structure: the way the organization is structured and who reports to whom.
Systems: the daily activities and procedures that staff members engaged in to the get the job
done.
Shared valves: called “super ordinate goals” when the model was first developed, these are
the core valves of the company that are evidenced in the corporate culture and the general
work ethic.
Style: the style of leadership adopted.
Staff: the employees and their general capabilities.
Skills: the actual skills and competencies of the employees working for the company.
Placing the shared valves in the middle of the model emphasizes that these valves are central
to the development of all the other critical elements. The company’s strategy, structure,
system, style, staff, and skill all stem from why the organization was originally created, and
what it stands for. The original vision of the company was formed from the valves of the
creator. As the valves change, so do all the other elements.
Strategy
A strategy is a plan of action designed to achieve a particular goal. Strategy refers to the
systematic action and allocation of resources to achieve the companies aim the integrated
vision and direction of the company as well as the manner, which it drives, articulate,communicates and implements that vision and direction. It can also be defined as the choice
BIET-MBA PROGRAMME, Davangere. Page 15
8/6/2019 Viny Final Project
http://slidepdf.com/reader/full/viny-final-project 16/54
PCS SECURITIES LTD
of direction and action that the company adopts to achieve its objectives in a competitive
situation.
As per the vision and mission statement of the company, the main strategy of PCS
SECURITIES is to gain competitive advantage over the rivals not by letting the others down
but by taking its own standards to a higher level through better services and customer
satisfaction. Their strategic goal is to excel in its service with integrity, diligence and
transparency in satisfying the customer’s investment needs and to build itself as the trusted
and a world class financial service provider.
System:
The daily activities and procedures that staff member’s e engage in to get job done. System
comprises of the main system that run the organization like the finance or the human resource
systems.
At PCS SECURITIES they use a computerised information system (CIS) from where all the
important data are being collected and then processed further as per various needs. And the
decision making system too is dependent on the CIS which is usually in the hands of the top
management. The management control system at PCS SECURITIES is all bound by the
company’s vision and mission statement as well as their immediate goals and targets. This is
taken care of by the responsibility centre at the head office. While the appraisal and the
reward systems are on a merit rating cum experience basis so that they can encourage and
retain the existing employees as well as attract the most potential employees while recruiting.
So, this as a whole helps PCS SECURITIES to bind the different constituents of the
organization and positions in fact to facilitate the performance of the entire organization in a
coordinated, cohesive and fruitful manner.
Structure:
Business needs to be organized in a specific form of shape that is generally referred as
organizational structure. Organization is structured in a variety of ways, dependent on their
objectives and culture. The structure of the company often dictates the way it operates and
performs. Traditionally, the business have been structured in a hierarchical way with several
BIET-MBA PROGRAMME, Davangere. Page 16
BOARD MEMBERS AND CHAIRMAN
8/6/2019 Viny Final Project
http://slidepdf.com/reader/full/viny-final-project 17/54
PCS SECURITIES LTD
divisions and departments, each responsible for a specific task such as human resources
management, production or marketing. Many layers of management controlled the
operations, with each answerable to the upper layer of management.
Shared valves:
Shared valves are the core valves of the company that are evidenced in the corporate culture
and the general work ethics. The valves of PCS SECURITIES are its core foundation for its
excellence in its day to day business operations which drives it towards the success. They are:
• Integrity
BIET-MBA PROGRAMME, Davangere. Page 17
EXECUTIES
BRANCH MANAGER
• Future and option
• Depository and D-Mat
•Currency trading
• Mutual fund
PRODUCT HEAD
ZONAL HEAD
REGIONAL HEAD
CEO and MD
TRAINEES
8/6/2019 Viny Final Project
http://slidepdf.com/reader/full/viny-final-project 18/54
PCS SECURITIES LTD
• Transparency
• Commitment to excellence
• Team work.
Style:
Style of leadership refers to the manner in which an individual uses his or her talent, valves,
knowledge, judgement, and attitudes to lead and relate to others. Style expresses the person’s
character. Style is the leadership approaches of top management and the organization’s
overall operating approach; also the way in which the organizations employees present
themselves to the outside world, to suppliers and customers.
The company follows a top-down style of management where in the top level managers
would give instructions and the same is followed the lower levels. However, at PCS
SECURITIES they have a very pleasant and cooperative culture where everyone’s ideas are
respected and considered. All are participative when it comes to working at the office so as to
reach the targets and meet the organizational goals jointly in the least possible time.
Staff:
Organizations are made up of people and it’s the people who makes the real differences to the
success of the organization in the increasingly knowledge based society. The importance of
human resource as thus got the central position in the strategy of the organization, away from
the traditional model of capital and land.
The people working in PCS SECURITIES have technical skills that are required for the day
to day operations in the company. There are nearly 150 workers working in PCS
SECURITIES limited.
Skills:
Skills deal with the strongest skills, actual skills and competencies of the employees working
for the company and how they are monitored. A skill is the ability, knowledge, undertaking,
and judgement to accomplish a task. Skills may be defined as what the company does best;
the distinctive capabilities and competencies that reside in the organization.
BIET-MBA PROGRAMME, Davangere. Page 18
8/6/2019 Viny Final Project
http://slidepdf.com/reader/full/viny-final-project 19/54
PCS SECURITIES LTD
PCS SECURITIES have variety of skills in carrying out business. The company has its
distinctive competency in providing excellent investment service and known for its strong
and long standing relationship with investors, other companies and its clients.
The company also has potential and proficient, technical and fundamental analysis that helps
to analyse the market carefully and correctly before any investment. The dealers at PCS
SECURITIES are also well qualified and fully trained. Thus, the skills which are the
dominant capabilities and core competencies possessed by the organization are very much in
parallel to organizational strategy, structure, systems, and the culture.
4. SWOT ANALYSIS OF PCS SECURITIES LIMITED
A SWOT analysis is a tool, used in management and strategy formulation. It can help to
identify the strengths, weakness, opportunities, and threats of a particular company.
The swot analysis shown in figure
BIET-MBA PROGRAMME, Davangere. Page 19
8/6/2019 Viny Final Project
http://slidepdf.com/reader/full/viny-final-project 20/54
PCS SECURITIES LTD
STRENGTHS:
• PCS SECURITIES has a wide network of branches and franchisees spread all over
India to fulfil all investment needs of the customers.
• State of the art technology: technology is one of the biggest strengths and the entire
business process is driven by the latest technology for easy, swift and secure
transactions.
-Single Platform with shared limits for all your trading needs
-Trade Anywhere/Anytime – trade on the internet or call/visit a local
office.
-NEAT terminals in regional offices for faster execution of trades
-Private VSAT network powered by Bharti with Internet Backups for worst case
scenarios.
-CTCL network trading engine powered by Financial Technologies (ODIN – market
leader)
-Real-time access to back office and depository data.
BIET-MBA PROGRAMME, Davangere. Page 20
8/6/2019 Viny Final Project
http://slidepdf.com/reader/full/viny-final-project 21/54
PCS SECURITIES LTD
- One of the first few adopter of new NSEIT platform (NOW)
• Highly trained work force.
• Competitive cost.
• Large base of skill talent.
• Fully fledged financial services group offering equity broking, commodities broking,
IPO distribution, mutual fund distribution, internet trading, and investment etc…
• The offices at various locations are integrated with private VSAT network and
internet connectivity, which enables access to its back office and depository data on
real time basis. The clients can also access their back office and depository reports
from the website.
• People: besides the core promoters, the group is having its full fledged teams headed
by young and dynamic professionals like chartered accountants, company secretaries,
MBA’s, IT professionals etc… to handle the various divisions of the company.
WEAKNESS
• Few branch networks and less physical presence (which is currently predominant only
in the northern part of India).
• Poor advertisement activities.
• No global reach.
• Weak brand name.
OPPORTUNITIES:
• Scope for taking its business overseas and going global.
• Scope for increasing its branch network especially in the important financial centres
as well as extending its physical presence in other parts of the country.
• Up gradation of the latest technology to give better and faster services to its clients.
THREATS:
• The ever increasing and challenging neck-to-neck competition especially with those
established and existing reputed stock broking companies.
• Uncertainty of the market and volatility and fluctuations in the stock prices.
• Change in customer needs, preferences and taste.
• Threat from the new entrants into the field of stock broking.
BIET-MBA PROGRAMME, Davangere. Page 21
8/6/2019 Viny Final Project
http://slidepdf.com/reader/full/viny-final-project 22/54
PCS SECURITIES LTD
5. FINANCIAL STATEMENT
BALANCE SHEET
(RS IN CR)
Year Mar 10 Mar 09
SOURCES OF FUNDS :
Share Capital 45.99 55.28
Reserves Total 173.94 236.02
BIET-MBA PROGRAMME, Davangere. Page 22
8/6/2019 Viny Final Project
http://slidepdf.com/reader/full/viny-final-project 23/54
PCS SECURITIES LTD
Equity Share Warrants 0 0
Equity Application Money 0 0
Total Shareholders’ Funds 219.93 291.3
Secured Loans 165.51 49.72
Unsecured Loans 152.68 66.75
Total Loan Funds 318.19 116.47
Total Liabilities 538.12 407.77
APPLICATION OF FUNDS :
Loan / Non-Current Assets 0 0
Fixed Assets
Gross Block 162.25 161.32
Less: Accumulated Depreciation 91.4 71.23
Less: Impairment of Assets 0 0
Net Block 70.85 90.09
Lease Adjustment 0 0
Capital Work in Progress 1.44 0.18Investments 51.82 51.77
Current Assets, Loans & Advances
Inventories 0 0
Sundry Debtors 101.35 26.24
Cash and Bank Balance 570.69 462.19
Loans and Advances 179.98 123.79
Total Current Assets 852.02 612.22
Less: Current Liab. & Provisions
Current Liabilities 370.39 280.04
Provisions 64.8 65.35
Total Current Liabilites & Provisions 435.19 345.39
Net Current Assets 416.83 266.83
Miscellaneous Expenses not written off 0 0
BIET-MBA PROGRAMME, Davangere. Page 23
8/6/2019 Viny Final Project
http://slidepdf.com/reader/full/viny-final-project 24/54
PCS SECURITIES LTD
Deferred Tax Assets 6.58 11.6
Deferred Tax Liability 9.4 12.7
Net Deferred Tax -2.82 -1.1
Total Assets 538.12 407.77
Contingent Liability 500.95 405.15
RATIOS
MAR 10 MAR 09
CURRENT RATIO 1.04 1.20
DEPT EQUITY RATIO 0.85 0.76
LONG TERM DEPT
EQUITYRATIO
-0.38 -0.06
INTEREST COVER
RATIO
5.92 0.14
6. Learning experience
BIET-MBA PROGRAMME, Davangere. Page 24
8/6/2019 Viny Final Project
http://slidepdf.com/reader/full/viny-final-project 25/54
PCS SECURITIES LTD
With the help of the college requisition letter I approached many companies and I got
permission in PCS securities limited. This opportunity makes me to learn from the company
and peoples so the peoples at PCS securities are very friendly and with the help and
cooperation I could complete the project successfully. I understood the stock market and how
the orders are placing and how the trading is done and how the brokers receives the order
from the clients and execute the order and how modify , how to cancel the order etc…
PCS securities are a stock broking company I saw and learned how the trading is done online
using the various software’s, how the records of the clients are maintained etc…
In the PCS securities daily the some customers coming and placing the order and going back
and they are discussing each together with employees regarding stock market variations etc…
PART-B
INTRODCUTION
BIET-MBA PROGRAMME, Davangere. Page 25
8/6/2019 Viny Final Project
http://slidepdf.com/reader/full/viny-final-project 26/54
PCS SECURITIES LTD
COMMODITIES MARKET
A commodity trading is a professional service-oriented set-up, is a recent phenomenon
in India but is growing at a tremendous pace, emerging as the largest and most exciting
service sectors of this decade.
In order to match up with this phenomenal growth and pace, there is always going to
be a need of trained commodities professionals. In addition, the fast changing commodities
sector demands that professionals learn new skills, improve their efficiency, learn to compete
and think out of the box. All this requires an education that is intensive, comprehensive and
closely linked to the commodities derivatives market, through experiment learning.
Over the last couple of years, MCX has been recognized as an exchange, which adds
immense intellectual, cultural and professional energy to the industry on a continuous basis.
It believes in innovation - innovation both in theory and practice to meet the needs of the
industry not only today but into the future.
The training department of MCX has been in the vanguard of knowledge dissemination
across a wide spectrum of participants in the commodity industry, more than 3,000
individuals have directly benefited from the various training programs conducted by the
exchange during the year 2005-06, in line with the pace of growth of the commodity marketin India.
Commodities market essentially represents another kind of organized market just like
the stock market and the debt market. However, commodities market, because of its unique
nature lends to the benefits of a wide spectrum of people like investors, importers, exporters,
producers, corporate, etc.,
What can commodities market offer?
Advantages to an investor, commodities futures represent a good form of investment
because of the following reasons.
• High Leverage – The margins in the commodity futures market are less than the
F&O section of the equity market.
• Less Manipulations - Commodities markets, as they are governed by
international price movements are less prone to rigging or price manipulations.
BIET-MBA PROGRAMME, Davangere. Page 26
8/6/2019 Viny Final Project
http://slidepdf.com/reader/full/viny-final-project 27/54
PCS SECURITIES LTD
• Diversification – The returns from commodities market are free from the direct
influence of the equity and debt market, which means that they are capable of
being used as effective hedging instruments providing better diversification.
Advantages to Importer or an exporter,
Hedge against price fluctuations – Wide fluctuations in the prices of import or export
products can directly affect to Importer or an exporter bottom-line as the price at which you
import/export is fixed before-hand. Commodity futures help Importer or an exporter to
procure or sell the commodities at a price decided months before the actual transaction,
thereby ironing out any change in prices that happen subsequently.
Advantages to Producer of a commodity, futures can help as follows:
• Lock-in the price for your produce – If you are a farmer, there is every chance
that the price of your produce may come down drastically at the time of harvest.
By taking positions in commodity futures you can effectively lock-in the price at
which Producer wish to sell your produce.
• Assured demand – Any glut in the market can make Producer wait unendingly
for a buyer. Selling commodity futures contract can give Producer assured
demand at the time of harvest.
• Control your cost – If Producer is an industrialist, the raw material cost dictates
the final price of Producer output. Any sudden rise in the price of raw materials
can compel Producer to pass on the hike to Producer customers and make your
products unattractive in the market. By buying commodity futures, Producer can
fix the price of their raw material.
• Ensure continuous supply – Any shortfall in the supply of raw materials can stall
Producer production and make Producer default on Producer sale obligations.
Producer can avoid this risk by buying a commodity futures contract by which
Producer are assured of supply of a fixed quantity of materials at a pre-decided price
at the appointed time.
Trade from anywhere in India
PCS, with its network of branches across the length and breadth of the country, is always
within customer’s reach, no matter where Producer is. This gives the facility to trade from
anywhere in India.
BIET-MBA PROGRAMME, Davangere. Page 27
8/6/2019 Viny Final Project
http://slidepdf.com/reader/full/viny-final-project 28/54
PCS SECURITIES LTD
Personalized Services PCS, with its wide array of personalized services from registry to
stock broking takes the pleasure of adding one more service, commodities broking with the
same personal touch.
State of Infrastructure
The strong IT backbone of PCS helps us to provide customized direct services
through our back office system, nation-wide connectivity and website.
Round the clock operations in commodities trading
Indian commodities market, unlike stock market keeps awake till 11.30 in the night
and PCS is all poised to offer round the clock services through its dedicated team of
professionals.
To open the commodities trading account.
The account opening forms are available at at branch offices and with PCS business
associates. People are requested to kindly contact a branch nearby area and complete the
account opening formalities for commodities trading branches.
Also people can take a print out and fill out a simple account opening form from our website
and complete the necessary documentation as per the checklist enclosed in the form. The
form after duly filled up may be deposited at the nearest PCS Branch or Associate along with
a cheque/DD favoring “PCS Comtrade Limited” payable at Hyderabad towards initial
margin.
Please remember the Member-Client agreement has to be executed on a non-judicial
stamp paper, as per the applicable by the ‘Stamp Duty Act’ of the relevant state.
1. Deposit Initial Margin:
a. You need to deposit an initial upfront margin as specified by the exchange
(usually between 5-10% of the contract value). The cheque/DD should be in
favour of “PCS Comtrade Limited”
2. Mark to Market Margin:
a. In addition to initial margin, you also need to keep a mark to market margin
for taking care of the adverse price movements, if any.
3. Duly filled up Client Registration form may be sent to the address below or to
any nearby PCS branch:
PCS Comtrade Limited
46, Avenue 4, Street No. 1, Banjara Hills, Hyderabad – 500 034.Andhra Pradesh.
BIET-MBA PROGRAMME, Davangere. Page 28
8/6/2019 Viny Final Project
http://slidepdf.com/reader/full/viny-final-project 29/54
PCS SECURITIES LTD
Following are the commodities traded in MCX.
Gold, Gold M, Gold HNI, Silver, Silver M, Silver HNI
Castor Seeds, Soy Seeds, Castor Oil, Refined Soy Oil, Soy meal,
RBD Palmolein, Crude Palm Oil, Groundnut Oil, Mustard Seed,
Mustard Seed Oil, Cottonseed Oilcake, Cottonseed
Pepper, Red Chilli, Jeera , Turmeric
Steel Long, Steel Flat, Copper, Nickel, Tin
Kapas, Long Staple Cotton, Medium Staple Cotton
Chana, Urad, Yellow Peas, Tur
Rice, Basmati Rice, Wheat, Maize, Sarbati Rice
Crude Oil
Following are the commodities traded in NCDEX
BIET-MBA PROGRAMME, Davangere. Page 29
8/6/2019 Viny Final Project
http://slidepdf.com/reader/full/viny-final-project 30/54
PCS SECURITIES LTD
National Commodities and Derivatives Exchange, NCDEX
COMMODITY
UNIT OF
PRICE
QUOTATION
UNIT OF
TRADIN
G
YIELD/Re.
MOVEMENT
TIC
SIZE
or
TIC
YIELD/TIC
or TIC
VALUE
PRECIOUS METALS
GOLD 10gm 100gm 10.00 1.00 10.00
BIET-MBA PROGRAMME, Davangere. Page 30
AgroProducts
8/6/2019 Viny Final Project
http://slidepdf.com/reader/full/viny-final-project 31/54
PCS SECURITIES LTD
KILO GOLD 10gm 1000gm 100.00 1.00 100.00
SILVER 1KG 5KG 5.00 1.00 5.00
MEGA
SILVER 1KG 30KG 30.00 1.00 30.00
SOYA 1QT 10MT 100.00 0.05 5.00
SOYA OIL 10KG 10MT 1000.00 0.05 50.00
CHANA 1QT 10MT 100.00 1.00 100.00
GAUR SEEDS 1QT 10MT 100.00 1.00 100.00
TUR 1QT 10MT 100.00 1.00 100
URD 1QT 10MT 100 1.00 100
CHILLI 1QT 5MT 50 1.00 50
TURMERIC 1QT 10MT 10 1.00 10
PEPPER 1QT 1MT 10.00 1.00 10.00
WHEAT 1QT 10MT 100 0.20 20
CASTOR 20KG 10MT 500 0.10 50
Multi-Commodity Exchange, MCX
COMMODITY
UNIT OF
PRICE
QUOTATION
UNIT OF
TRADIN
G
YIELD/Re.
MOVEMENT
TIC
SIZE
or
TIC
YIELD/TIC
or TIC
VALUE
PRECIOUS METALS
GOLD-M 10gm 100gm 10.00 1.00 10.00
GOLD 10gm 1KG 100.00 1.00 100.00
SILVER-M 1KG 5KG 5.00 1.00 5.00
SILVER 1KG 30KG 30.00 1.00 30.00
CRUDE 1BBL 100BBL 100 1.00 100
AGRICULTURAL PRODUCTS
BIET-MBA PROGRAMME, Davangere. Page 31
8/6/2019 Viny Final Project
http://slidepdf.com/reader/full/viny-final-project 32/54
PCS SECURITIES LTD
SOYA 1QT 10MT 100.00 0.05 5.00
SOYA 1QT 10MT 100.00 0.05 5.00
MENTHA OIL 1KG 360KG 360 0.10 36.00
POTATO 1QT 30MT 300 0.10 30.00
KAPAS
KHALI50KG 5MT 100 0.10 10.00
CARDAMOM 1KG 500KG 500 0.50 250
INDUSTRIAL METALS
STEEL LONG 1MT 10MT 10.00 1.00 10
Eg::take a gold for trading if there is a movement of 1 rupee in the tick size there will be
yield of 5 rupees for every 10 gm and the lot size is 100 gm i:minimum purchase of precious
metal gold is 100 gm .
Note: NCDEX introduced trading on Saturdays in all eligible contracts with effect from May
15, 2004
A commodity derivative derives its value from an underlying asset, which is necessarily
a commodity. To understand the commodity derivatives markets it’s necessary to clear about’
commodities’. Commodities, in simple words are any goods that are common and unbranded.
Gold, silver, rubber, pepper, jute, wheat, sugar, cotton etc., are some of the common
commodities. For e.g. apple juice can be a commodity whereas the ‘Real’ apple juice cannot
be called a commodity. Customers may be surprised to know that in the US commodities
markets there are futures available even on cattle. Another feature of commodities is that they
are commonly available. Commodity markets represent the formal system for the interplay of
demand for and supply of commodities. These markets can be broadly classified into spot
market and futures market. Commodities for immediate delivery are traded through the spot
market. The players in the spot market are the actual producers and the consumers of the
commodities.
The other type of market called the ‘Futures market’ is for facilitating contracts for future
delivery. (Please go through the material on ‘Futures and Options’ to understand about
futures) These markets make available for trading, the various derivatives based on
commodities. Usually traded ones are the futures and options. However in India options on
commodities are not available and are expected to be introduced soon. The players in the
futures markets are Hedgers, Arbitragers and investors. Hedgers are those who holdsimultaneous positions in the spot market also. These are generally the actual consumers or
BIET-MBA PROGRAMME, Davangere. Page 32
8/6/2019 Viny Final Project
http://slidepdf.com/reader/full/viny-final-project 34/54
PCS SECURITIES LTD
Commodity and hedge fund managers
Consulting firms
Regulatory authorities
Research organisation
Corporate houses
What are the major commodity Exchanges?
The Government of India permitted establishment of National-level Multi-Commodity
exchanges in the year 2002 and accordingly three exchanges have come into picture. They
are:
Multi-Commodity Exchange of India Ltd, Mumbai (MCX).
National Commodity and Derivatives Exchange of India, Mumbai (NCDEX).
National Multi Commodity Exchange, Ahmadabad (NMCE).
What are the working hours for the commodity exchanges?
Commodity Exchanges (MCX and NCDEX) function from 10.00 Am to 11.30 PM with
a break of 30 minutes between 5.00 PM and 5.30 PM. However some specific commodities
with strong international price linkages (such as Gold, Silver, Soy oil, Crude Oil etc) are
allowed to be traded after 8.00 PM.
Who regulates the commodity exchanges?
Just as SEBI regulates the stock exchanges, commodity exchanges are regulated by
Forwards Market Commission (FMC); Forwards Market Commission is under the purview of
the Ministry of Food, Agriculture and Public Distribution.
How risky are these markets compared to stock & bond markets?
Commodity prices are generally less volatile than the stocks and this has beenstatistically proven. Therefore it's relatively safer to trade in commodities.
BIET-MBA PROGRAMME, Davangere. Page 34
8/6/2019 Viny Final Project
http://slidepdf.com/reader/full/viny-final-project 35/54
PCS SECURITIES LTD
Also the regulatory authorities ensure through continuous vigil that the commodity prices are
market-driven and free from manipulations.
However all investments are subject to market risk and depends on the individual decision.
There is risk of loss while trading in commodity futures like any other financial instruments.
How the deliveries are made possible?
The exchange has enlisted certain cities for specific commodities as the delivery
centers. The seller of commodity futures, upon expiry of the contract may choose to deliver
physical stock instead of settling the positions by cash, in which case he would be required to
deliver the stocks to the specified warehouses. The buyer of the commodity futures, if he is
interested in physical delivery would be matched with a seller and would be required to take
delivery of the specified quantity of stock from the designated warehouse. Worldwide
commodity futures are generally used for hedging and speculation and hence physical
deliveries are negligible. However the possibility of physical delivery has made these markets
more attractive in India. Both NCDEX and MCX have successfully completed physical
delivery in bullions and various agro-commodities.
In case of NCDEX it is mandatory to open a Demat account with an approved DP by the
buyer and seller if they wish to take/ give delivery of goods.
What is the date of expiry?
At NCDEX the contracts expire on 20 Th day of each month. If 20 Th happens to be a
holiday the expiry day will be the previous working day.
At MCX the expiry day is 15 Th of every month. If 15 Th happens to be a holiday the expiry
day will be the previous working day. The expiry day also differs for different commodities
in both the exchanges.
How much are the margins on these Commodity futures?
Generally commodity futures require an initial margin between 5-10% of the contract
value. The exchanges levy higher additional margin in case of excess volatility. The margin
amount varies between exchanges and commodities. Therefore they provide great benefits of
leverage in comparison to the stock and index futures trade on the stock exchanges. The
exchange also requires the daily profits and losses to be paid in/out on open positions (Mark
to Market or MTM) so that the buyers and sellers do not carry a risk of not more than one
day.
BIET-MBA PROGRAMME, Davangere. Page 35
8/6/2019 Viny Final Project
http://slidepdf.com/reader/full/viny-final-project 36/54
PCS SECURITIES LTD
Following is a table showing the details # regarding major commodities traded on MCX
& NCDEX
MCX
Commodity Initial Margin Quotation Lot Size Delivery Center
Gold 3.5% 10 Gm 1 Kg Mumbai, Ahmadabad
Silver 5% 1 KG 30 KG Ahmadabad
Crude Oil 5% 1 bl 100 bls Mumbai
Soy Oil 3% 10 KG 10 MT Indore
Pepper 8% 10 KG 100 KG Kochi
Soy Seed 4% 1 MT 10 MT Indore
CAPITAL MARKETS
Introduction to Capital Markets
Transfer of resources from those with idle resources to others who have a productive
need for them is perhaps most efficiently achieved through the securities markets. Stated
formally, securities markets provide channels for allocation of savings to investments and
thereby decouple these two activities. As a result, the savers and investors are not constrained
by their individual abilities, but by the economy’s abilities to invest and save respectively,
which inevitably enhances savings and investment in the economy.
Market Segments
The securities market has two interdependent and inseparable segments, the new issues
(primary market) and the stock (secondary) market. The primary market provides the channel
for sale of new securities while the secondary market deals in securities previously issued.
The price signals, which subsume all information about the issuer and his business including
associated risk, generated in the secondary market, help the primary market in allocation of
BIET-MBA PROGRAMME, Davangere. Page 36
8/6/2019 Viny Final Project
http://slidepdf.com/reader/full/viny-final-project 37/54
PCS SECURITIES LTD
funds. The issuers of securities issue (create and sell) new securities in the primary market to
raise funds for investment and/or to discharge some obligation. They do so either through
public issues or private placement. There are two major types of issuers who issue securities.
The corporate entities issue mainly debt and equity instruments (shares, debentures, etc.),
while the governments (central and state governments) issue debt securities (dated securities,
treasury bills).
The secondary market enables participants who hold securities to adjust their holdings in
response to changes in their assessment of risk and return. They also sell securities for cash to
meet their liquidity needs. A variant of secondary market is the forward market, where
securities are traded for future delivery and payment. Pure forward is outside the formal
market. The versions of forward in formal market are futures and options. In futures market,
standardized securities are traded for future delivery and settlement. These futures can be on
a basket of securities like an index or an individual security.
cases of options, securities are traded for conditional future delivery. There are two types of
options – a put option permits the owner to sell a security to the writer of options at a
predetermined price while a call option permits the owner to purchase a security from the
writer of the option at a predetermined price. These options can also be on individual stocks
or basket of stocks like index. Two exchanges, namely NSE and BSE provide trading of
derivatives of securities.
Products and Participants
Savings are linked to investments by a variety of intermediaries through a range of
complex financial products called “securities” which is defined in the Securities Contracts
(Regulation) Act, 1956. Which includes shares, scrip’s, stocks, bonds, debentures, debenture
stock, or other marketable securities of like nature in or of any incorporate company or body
corporate, government securities, derivatives of securities, units of collective investment
scheme, security receipts, interest and rights in securities,
Stock Basics: What Causes Prices to Change?
Stock prices change every day by market forces. By this we mean that share 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.
Understanding supply and demand is easy. What is difficult to comprehend is what makes
BIET-MBA PROGRAMME, Davangere. Page 37
8/6/2019 Viny Final Project
http://slidepdf.com/reader/full/viny-final-project 38/54
PCS SECURITIES LTD
people like a particular stock and dislike another stock. This comes down to figuring out what
news is positive for a company and what news is negative.
The price movement of a stock indicates what investors feel a company is worth. The
value of a company is its market capitalization, which is the stock price multiplied by thenumber of shares outstanding.
For example, a company that trades at Rs.100 per share and has 1,000,000 shares
outstanding has a lesser value than a company that trades at Rs.50 but has 5,000,000 shares
outstanding (Rs.100 x 1,000,000 = Rs.100,000,000 while Rs.50 x 5,000,000 =
Rs.250,000,000). The price of a stock doesn't only reflect a company's current value; it also
reflects the growth that investors expect in the future.
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. Public
companies are required to report their earnings four times a year (once each quarter).
National Stock Exchange watches with rabid 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 surprise (are better than expected), the
price jumps up. If a company's results disappoint (are worse than expected), then the price
will fall.
Some believe that it isn't possible to predict how stocks will change in price 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, as a certainty is that stocks are volatile and can
change in price extremely rapidly.
The important things to consider about stocks are the following:
At the most fundamental level, supply and demand in the market determine stock price.
Price times the number of shares outstanding (market capitalization) is the value of a
company.
BIET-MBA PROGRAMME, Davangere. Page 38
8/6/2019 Viny Final Project
http://slidepdf.com/reader/full/viny-final-project 39/54
PCS SECURITIES LTD
How to Read a Stock Table/Quote
Columns 1 & 2: 52-Week Hi and Low - These are the highest and lowest prices at which a
stock has traded over the previous 52 weeks (one year). This typically does not include the
previous day's trading.
Column 3: Company Name & Type of Stock - This column lists the name of the company.
If there are no special symbols or letters following the name, it is common stock. Different
symbols imply different classes of shares. For example, "pf" means the shares are
Preferred stock.
Column 4: Ticker Symbol - This is the unique alphabetic name which identifies the stock.
Column 5: Dividend per Share - This indicates the annual dividend payment per share. If
this space is blank, the company does not currently pay out dividends.
Column 6: Dividend Yield - This states the percentage return on the dividend, calculated as
annual dividends per share divided by price per share.
Column 7: Price/Earnings Ratio - This is calculated by dividing the current stock price by
earnings per share from the last four quarters.
Column 8: Trading Volume - This figure shows the total number of shares traded for the
day, listed in hundreds. To get the actual number traded, add "00" to the end of the number
listed.
BIET-MBA PROGRAMME, Davangere. Page 39
8/6/2019 Viny Final Project
http://slidepdf.com/reader/full/viny-final-project 40/54
PCS SECURITIES LTD
Column 9 & 10: Day High & Low - This indicates the price range at which the stock has
traded at throughout the day. In other words, these are the maximum and the minimum prices
that people have paid for the stock.
Column 11: Close - The close is the last trading price recorded when the market closed onthe day.
Column 12: Net Change - This is the Rupee value change in the stock price from the
previous day's closing price. When you hear about a stock being "up for the day," it means
the net change was positive.
or any other instruments so declared by the central government These demand for and supply
of securities and funds determine, under competitive market conditions in goods and
securities market, the prices of securities.
Securities Market and Economic Growth
A well functioning securities market is conducive to sustained economic growth. There
have been a number of studies, starting from World Bank and IMF to various scholars, which
have established robust relationship not only one way, but also the both ways, between the
development in the securities market and the economic growth.
The securities market fosters economic growth to the extent that it-
• Augments the quantities of real savings and capital formation from any given level of
national income,
• Increases net capital inflow from abroad,
• Raises the productivity of investment by improving allocation of investible funds, and
(d) Reduces the cost of capital.
A Profile of Indian Securities Market
The past decade in many ways has been remarkable for securities market in India. It
has grown exponentially as measured in terms of amount raised from the market, number of
stock exchanges and other intermediaries, the number of listed stocks, market capitalization,
trading volumes and turnover on stock exchanges, and investor population. The market has
witnessed fundamental institutional changes resulting in drastic reduction in transaction costs
and significant improvements in efficiency, transparency and safety.
BIET-MBA PROGRAMME, Davangere. Page 40
8/6/2019 Viny Final Project
http://slidepdf.com/reader/full/viny-final-project 41/54
PCS SECURITIES LTD
Securities and Exchange Board of India (SEBI)
With the objectives of improving market efficiency, enhancing transparency,
checking unfair trade practices and bringing the Indian market up to international standards, a
package of reforms consisting of measures to liberalize, regulate and develop the securities
market was introduced during the 1990s. This has changed corporate securities market
beyond recognition in this decade. The practice of allocation of resources among different
competing entities as well as its terms by a central authority was discontinued. The secondary
market overcame the geographical barriers by moving to screen-based trading. Trades enjoy
counterparty guarantee.
Exchanges of capital market
Bombay Stock Exchange (BSE)
Bombay Stock Exchange Limited is the oldest stock exchange in Asia with a rich
heritage. Popularly known as "BSE", it was established as "The Native Share & Stock
Brokers Association" in 1875. It is the first stock exchange in the country to obtain
permanent recognition in 1956 from the Government of India under the Securities Contracts
(Regulation) Act, 1956.The Exchange's pivotal and pre-eminent role in the development of
the Indian capital market is widely recognized and its index, SENSEX, is tracked worldwide.
With Demutualisation, the trading rights and ownership rights have been de-linked
effectively addressing concerns regarding perceived and real conflicts of interest. The
Exchange is professionally managed under the overall direction of the Board of Directors.
The Board comprises eminent professionals, representatives of Trading Members and the
Managing Director of the Exchange.
National Stock Exchange (NSE)
The National Stock Exchange of India Limited has genesis in the report of the High
Powered Study Group on Establishment of New Stock Exchanges, which recommended
promotion of a National Stock Exchange by financial institutions (FII’s) to provide access to
investors from all across the country on an equal footing. Based on the recommendations,
NSE was promoted by leading Financial Institutions at the behest of the Government of India
and was incorporated in November 1992 as a tax-paying company unlike other stock
exchanges in the country
BIET-MBA PROGRAMME, Davangere. Page 41
8/6/2019 Viny Final Project
http://slidepdf.com/reader/full/viny-final-project 43/54
PCS SECURITIES LTD
BHEL
Bharti Airtel Ltd
DLF Ltd
Grasim Industries Ltd
Hdfc Bank Ltd
Hindalco Industries Ltd
Housing Development Financial Corporation Ltd
Icici Bank Ltd
Infosys Technologies Ltd
ITC Ltd
Jaiprakash Associates Ltd
Larsen and Toubro Ltd
Mahindra and Mahindra Ltd
Maruti Suzuki Ltd
NTPC Ltd
Oil and Natural Gas Corporation Ltd
Ranbaxy Laboratories Ltd
Reliance Communication Ltd
Reliance Industries Ltd
Relaince Infracture Ltd
SBI
Sun Pharmaceuticals Ltd
Sterlite Industries India Ltd
TCS Ltd
Capital Market Intermediaries
BIET-MBA PROGRAMME, Davangere. Page 43
8/6/2019 Viny Final Project
http://slidepdf.com/reader/full/viny-final-project 44/54
PCS SECURITIES LTD
There are several institutions, which facilitate the smooth functioning of the securities
market. They enable the issuers of securities to interact with the investors in the primary as
well as the secondary arena.
•
Merchant Bankers
• Credit Rating Agencies
• R& T Agents - Registrars to Issue
• Stock Brokers
• Custodians
• Mutual Funds
• Depositories
• Depository Participants
Players (investors) in securities market
• Individual investors
• Institutional investors
• FII’s
• Mutual fund investor
Capital Market Instruments
The changes in the regulatory framework of the capital market and fiscal policies have
also resulted in newer kinds of financial instruments (securities) being introduced in the
market. Also, a lot of financial innovation by companies who are now permitted to undertake
treasury operations, has resulted in newer kinds of instruments - all of which can be traded –
being introduced. The variations in all these instruments depend on the
Tenure, the nature of security, the interest rate, and the collateral security offered and the
trading features, etc.
• Debentures
•
Bonds
• Preference Shares
BIET-MBA PROGRAMME, Davangere. Page 44
8/6/2019 Viny Final Project
http://slidepdf.com/reader/full/viny-final-project 45/54
PCS SECURITIES LTD
• Equity Shares
• Government securities
Working hours for stock market
Generally trading in securities market commences from 9am and market closes on 3.30pm.
Capital Market Processes
There are various processes that Issuers of securities follow or utilize in order to tap the
savers for raising resources. Some of the commonly used processes and methods are
described below.
Initial Public Offering (IPO)
Private Placement
Preferential Offer/Rights Issue
Internet Broking
1. STATEMENT OF THE PROBLEM
To know the comparisons between commodity and capital market at the trading point of view. and also to analyse which is the best investment alternative.
In the past few years of the commodity and security market in India, little has been
done to educate and familiarize people with these products by the concerned institutions.
With the increase in liquidity in this market, the benefits of hedging risk using commodity
and security could be fully enjoyed by the investors, fund managers etc., resulting in a safe
and secure market place. A major need for accomplishing this at this juncture is to increase
investors’ awareness and education. The potential loss that could arise due to the volatility of
securities market also needs to be explained to those who use commodities for appreciation of
the benefits of the market.
2. OBJECTIVE OF THE STUDY:
Objective
Comparison of commodity market with secondary market
Sub objective
BIET-MBA PROGRAMME, Davangere. Page 45
8/6/2019 Viny Final Project
http://slidepdf.com/reader/full/viny-final-project 46/54
PCS SECURITIES LTD
To know the risk involved in secondary and commodity market.
To know the investment patterns of the investors in commodity and secondary market.
To know the awareness of customers towards commodity and secondary market
3. SCOPE OF THE STUDY:
The problem stated by PCS is to make comparison between commodity and secondary
market and investment patterns of the High Net-worth Individual investors (HNIs) in
Bangalore.
The study undertaken is the analysis of secondary market with commodity market and
investment pattern of Individuals where various independence variables are studied so as toknow which variable or variables can go a long way in explaining the investment preferences
of the targeted respondents of this high potential market. It also to know the current market
trend and competitors performance vis-à-vis PCS share market.
RESEARCH DESIGN
METHODOLOGY OF DATA COLLECTION
Primary data was collected from 100 respondents using a schedule of questions
Secondary data was collected mainly from the Internet, printed journals on the capital
markets of India and commodity market, newspaper articles and books written on the Indian
stock markets
LIMITATIONS
While completing this study, there were some constraints. They were:
Sample size: Due to constraints on time, the sample size had to be limited at 100.
This, by and large, may not represent the entire community of the Indian investor.
BIET-MBA PROGRAMME, Davangere. Page 46
8/6/2019 Viny Final Project
http://slidepdf.com/reader/full/viny-final-project 47/54
PCS SECURITIES LTD
This data gives a view of investors at PCS only. The investors at other brokerage
houses have not been taken into consideration. It is assumed however that the views of online
investors would not differ much.Tele – calling: Most of the data collection was done by tale
calling, which caused hindrance in time and also in obtaining precise and correct information.
Tele-calling caused problems like clients questioning the authority of the caller and providing
inaccurate information.
ANALYSIS AND INTREPRETATION
A). Sample size selected: 100
Total Number of customer available for survey: 100
BIET-MBA PROGRAMME, Davangere. Page 47
8/6/2019 Viny Final Project
http://slidepdf.com/reader/full/viny-final-project 48/54
PCS SECURITIES LTD
Interpretation
The above table shows that total 100 respondents are taken in to consideration for survey
and opinion of each respondent is collected of the services provided by PCS SECURITIES
LTD
b). Customer came to know about “PCS securities ltd “
Total no. Of sample taken: 100
1 2 3 4 5
Friends
News Papers/
Business Magazines Online Agent/Financial Others
47 18 10 14 11
Analysis
The above table shows the respondents know PCS FINANCIAL CONSULTANT is from
the friends is more. Nearly 47.00% of respondent will know. 18% of Customer through
News paper ,10% of Customer through online ,14% of Customer through Agent and
financial consultant and 11% of Customer know through. Other
Graph showing customer awareness about PCS SECURITIES LTD
Interpretation
BIET-MBA PROGRAMME, Davangere. Page 48
8/6/2019 Viny Final Project
http://slidepdf.com/reader/full/viny-final-project 49/54
PCS SECURITIES LTD
From the above chart it is clear that highest percentage of customers came to know
about PCS LTD is through their friends.
c). Settlement (Selling/ Buying in commodities as well as securities)
Total no. Of sample taken: 100
Extremely
Satisfied Satisfied
Neither satisfied/nor
Unsatisfied Unsatisfied
Extremely
unsatisfied
25 49 26 0 0
Analysis
The above table shows that service offered is Extremely Satisfied for25% of the
respondents; 49% of respondent are satisfied and 26% of respondent are having neutral
opinion of the settlement service.
Graph showing settlement of shares
Interpretation
From the above it is clear that none of the respondent is unsatisfied with the
settlement system of PCS securities LTD.
d) Demat
Total no. Of sample taken: 100
Extremely satisfied Satisfied
Neither satisfied/nor
Unsatisfied Unsatisfied
Extremely
unsatisfied38 46 16 0 0
BIET-MBA PROGRAMME, Davangere. Page 49
8/6/2019 Viny Final Project
http://slidepdf.com/reader/full/viny-final-project 50/54
PCS SECURITIES LTD
Analysis
The above table shows Demat services offered is satisfied.38% of the customers are
extremely satisfied, 46% Satisfied, 16%of of customer neither satisfied/nor.
Graph showing Demat services
Interpretation
There is no any customer who is not satisfied but everyone reaches the services of Demat
facility provided by PCS
e).Awareness level: Awareness of commodity market and capital market provided by
PCS.
Mode of
investment
respondents percentage
Securities 100 68
Commodities 100 32
Analysis
The above table is indicating that about 68%of the customers are aware about
securities trading and 32%of clients are aware of commodity trading so this
shows more number of people making their investment in securities rather thancommodities.
Graph showing awareness of the clients of different market
BIET-MBA PROGRAMME, Davangere. Page 50
8/6/2019 Viny Final Project
http://slidepdf.com/reader/full/viny-final-project 51/54
PCS SECURITIES LTD
Interpretation
From the above chart we can conclude that limited client’s opened the PCS comtrade
account and so limited people are aware of that.
f).Risk involved in trading of commodity and security market
Mode of
investment
percentage
Commodity 55%
security 45%
Analysis
Risk involves in both commodity and security but 45%of risk is in as we can buy and hold
for a long period of time on delivery basis.as55% of risk is there commodity as because
commodities are purchased on the basis of minimum lot size and on contract basis.
Graph showing risks in investment
Interpretation
The above graph shows that the clients have to bear more risk while making investment in
commodity market rather than security market.
g).Investment pattern of individuals in commodity and security market
Mode of
investment
percentage
Commodity 30%
BIET-MBA PROGRAMME, Davangere. Page 51
8/6/2019 Viny Final Project
http://slidepdf.com/reader/full/viny-final-project 52/54
PCS SECURITIES LTD
security 70%
Analysis
The above table shows that any individual who prefer to invest more in security is 70%
rather than commodity which is only 30%
Graph showing investment pattern of individuals in commodity and capital market
INTREPRETATION
From the above chart we can conclude that more individual prefer to invest in security
because as customer can purchase any amount of shares as compared that in commodity an
individual have to purchase the commodity on lot wise which incurs huge amount.
h). Table showing Time period of trading of commodity and securities
Mode of
investment
Time schedule(in
hours)
Commodity
(10am to night
11.30pm)
13
Security(9am to
3.30 pm)
6.5
Analysis
The above table shows that for 13 hours commodity was traded but security is traded only 6
hours
Chart showing time schedule for commodity and security trading
BIET-MBA PROGRAMME, Davangere. Page 52
8/6/2019 Viny Final Project
http://slidepdf.com/reader/full/viny-final-project 53/54
PCS SECURITIES LTD
Interpretation
The above chart shows that for more hours trading on commodity facilitates the exchange
rather than security.
FINDINGS, AND SUGGESTION
Findings
After analyzing the data, the following points were highlighted
Almost 32% of the clients trading commodity
Approximately 68% of the clients trading in capital market.
On the whole, employees and businessmen have totally agreed that the services offered
by PCS Comtrade. Ltd is hassle free.
The study shows that more than 50% of the clients came to know about PCS through
friends and rest is from online, newspapers and others agents.
It is found that maximum number of client is satisfied with settlement service and d-mat
services provided by PCS.
And also it is found that maximum risk is involved in commodity trading.
Suggestions
To create the awareness of commodity market because it is observed that the
commodity market are upcoming market to watch for investment.
Although investing in commodity market is risky but a systematic and close study of
the market before investing is more profitable.
The Managers should maintain the good relationship between clients and to keep in
touch with the clients at a regular basis
BIET-MBA PROGRAMME, Davangere. Page 53
8/6/2019 Viny Final Project
http://slidepdf.com/reader/full/viny-final-project 54/54
PCS SECURITIES LTD
Conclusion
To sum it all the result shows that the customers are much more aware of securities market
compare to commodity market, this shows that the commodity market has ample amount of
opportunities in upcoming days if the company creates the awareness about commodity
market.
We know that commodity market is more risky one compare to security market but a
systematic and close study of the commodity market before investing is more profitable.
For diversification of portfolio beyond shares, fixed deposits and mutual funds, commodity
trading offers a good option for long-term investors and arbitrageurs.
Considering the huge volatility witnessed in the equity markets recently the commodities
could add the required zing to investors' portfolio
Recommended