SUMMER TRAINING REPORT On Functioning of stock market in India India Infoline limited

Submitted in partial fulfillment of the requirements of Post Graduate Programme by Abhay Narayan Singh Batch:2011-13

FT(FS)11-303
IILM Graduate School of Management Greater Noida

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DECLARATION FORM

I hereby declare that the Project work entitled FUNCTIONING OF STOCK MARKET IN INDIA submitted by me for the Summer Internship during the Post Graduate Program to IILM Graduate School of Management, Greater Noida is my original work and has not been submitted earlier either to IILM or to any other Institution for the fulfillment of the requirements for any other course of study. I also declare that no chapter of this manuscript, either in whole or in part, is copied from any other document.

Signature of Student: Name of Student:

Signature of Company Mentor: Name of Company Mentor: Designation:

Date: Place:

Date: Place:

TABLE OF CONTENT

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Introduction Objectives of the project Methodology Sample selection, data collection, descriptive summary Analysis Findings and interpretation Summary and conclusions Learning from the SIP Annexure(In hard copy)

List of tables and figures

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Table no. 1 1.1 1.2 1.3 1.4 1.5 1.6 1.7 1.8 1.9 2.0 2.1 2.2 2.3 2.4

Page no. 7 13 14 14 15 15 17 18 19 19 20 21 22 24 24

Figure no. 1 1.1 1.2 1.3 1.4 1.5 1.6 1.7

Page no. 16 17 18 19 20 21 22 23

EXECUTUVE SUMMARY
Stock exchanges to some extent play an important role as indicators, reflecting theperformance of the countrys economic state of health. Stock market is a place wheresecurities are bought and sold. It is exposed to a high degree of volatility; pricesfluctuate within minutes and are 4|Page Functioning of stock market in India

determined by the demand and supply of stocks at agiven time. Stock brokers are the ones who buy and sell securities on behalf ofindividuals and institutions for some commission. A typical trading day starts at 9.00 am ending at 3.30 pm. Monday to Friday in equity market for commodities its from 10 a.m. to 11:30 p.m. and for currency its from 9.15 a.m. to 5.00 p.m.. has 30 stocks which make up the Sensex .NSE has 50 stocks in its index called Nifty. FII s Banks, financial institutions mutual funds are biggest players in the market. Then there are the retail investors and speculators. The last ones are the ones who follow the market morning to evening; Market can be very addictive like blogging though stakes are higher in the former. India Infoline Ltd is listed on both the leading stock exchanges in India, viz. the Stock Exchange, Mumbai (BSE) and the National Stock Exchange (NSE). The India Infoline group, comprising the holding company, India Infoline Ltd and its subsidiaries, straddles the entire financial services space with offerings ranging from Equity research, Equities and derivatives trading, Commodities trading, Portfolio Management Services, Mutual Funds, Life Insurance, Fixed deposits, GoI bonds and other small savings instruments to loan products and Investment banking. India Infoline also owns and manages the websites, www.indiainfoline.com and www.5paisa.com The subsidiaries of India Infoline Ltd are: India Infoline Securities Pvt. Ltd India Infoline Commodities Pvt Ltd India Infoline Distribution Co Ltd (IILD) India Infoline Insurance Services Ltd India Infoline Investment Services Ltd India Infoline Insurance Brokers Ltd

INTRODUCTIONThe market in which shares are issued and traded either through exchanges or over-thecounter markets. Also known as the equity market, it is one of the most vital areas of a market economy as it provides companies with access to capital and investors with a slice of ownership in the company and the potential of gains based on the company's future performance. Basically, this stock market can be split in two categories1. Primary market 2. Secondary market

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But as a layman I can say the primary market is where new issues are first offered, with any subsequent trading facilitated in the secondary market. 1. Primary market- The primary market plays an important role in the securities market by forming a link between the savings and investments. The primary market comprises the public issues and the private placement market.

2. Secondary market- Secondary market refers to a market where securities are traded after being initially offered to the public in the primary market and/or listed on the Stock Exchange. Secondary market comprises of equity markets and the debt markets. In the primary market, securities are offered to public for subscription for the purpose of raising capital or fund. Secondary market is an equity trading platform in which already existing/pre-issued securities are traded among investors. Secondary market could be either auction or dealer market. While stock exchange is the part of an auction market, Over-the-Counter (OTC) is a part of the dealer market. The securities market has essentially three categories of participants (i) the investors, (ii) the issuers, (iii) the Intermediaries. These participants are regulated by the Securities and Exchange Board of India (SEBI), Reserve Bank of India (RBI), Ministry of Corporate Affairs (MCA) and the Department of Economic Affairs (DEA) of the Ministry of Finance.

National stock exchange and Bombay stock exchange are primarily two stock exchanges in India where most of the companies are listed. There are other 21 regional stock exchanges too but the volumes traded and securities listed are very negligible. There are two commodity exchanges in India Multi Commodity exchange (MCX) and National commodities and derivatives exchange(NCDEX) where commodities futures are traded.

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National stock exchange (NSE) and Multi commodity exchange (MCX) have also developed a platform in last 3 years for currency derivatives. Table- 1.1

OBJECTIVES OF THE PROJECTObjective of this project can be explained by following points UNDERSTANDING OF STOCK MARKET- As I have studied little bit of stock market in newspapers and my book IFTM I was very curious to know about stock market and what are the various influential factors and participants of it. How the futures are traded and how their transactions get settled. .

SCOPE OF IMPROVEMENT AND FURTHER REFORMS REQUIRED IN INDIAN FINANCIAL MAKET- Indian
commodity derivatives have great growth potential but government policies have resulted in the underlying spot/physical market being fragmented (due to lack of free movement of commodities and differential taxation within India).The other reforms and improvement required in exchange traded derivatives where Exchange-traded derivatives based on interest rates and currencies are virtually absent.

MethodologyBasically I did 2 main activities in IIFL1. Selling and marketing activity 2. Investment advisor For the purpose of investment advisory first of all I needed to do the work of lead creation or lead generation. The lead creation activity means gathering contact details of different

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target customers. For full filling of this purpose now the selling and marketing activities comes into play. 1. Selling and marketing activityIn order to get leads I need to do few jobs those are explained as follows Cold calling- It refers to the process where a person needs to go door to door for selling their product.Its not a cakewalk. I went to Lajpat nagar, Vikaspuri Lal market, and nearby areas. I went to shops, waited for the people outside the ATMs and went to approach the customers by pushing their door bells. Every time when a person come out or I interact with any person I tried to explain him about our product (Demat a/c) if they seemed to be interested in investment then took their details on a form (details like Name, email add., mobile no.,address). It is useful because i want to create a database where i can reach to people by calling.

Placing Canopies - The first step to place a canopy is that to talk the concern
member of that company for this purpose. When I got the permission from Renu pandey and Rati bist from HP centre in business global park, Gurgaon I took 2 people along with me and we left for that place. We placed our canopy over there and waited for the people to come. Whenever somebody turned up I tried to explain that person about our offerings and gave them a form where they needed to fill their contact details. Second time I placed canopy with my AVP Mr. Harsh Monga in Rewari.It was a BPO. Here we had the permission to approach the people in lunch time so I did my best to interact with maximum number of people. My mentor and AVP motivated me every time and gave me useful suggestions in time.

FLAME Presentations I and my team members also organized

FLAME(Financial Literacy Agenda for Mass Empowerment) presentations. On the first place we went to Paramount cables Vivadi Rajasthan where we gave our presentations. The main motive of these presentation was to spread the flame of financial literacy to every part of the country.After the presentation we tried to solve the queries of the people and from there we got many leads too.

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 When the lead creation process was completed then I started calling them and fixed the appointment with them. 2. Investment advisory - The function of investment advisory starts from here I go to meet the clients after fixing the appointment, then there are 3 things which is needed to be understand for investment advisory

Investment objective Risk profile Time horizon of investment

First of all when we meet any lead then we try to figure out what is the investment objective of the client. Investment objective can be two types Regular Income Wealth creation

For conducting any research we need to identify the research problem first-

STATEMENT OF PROBLEM
To select a corporate broker that is rated highest on customer satisfaction level. The next step is to determine the objective of the research-

Objectives
To conduct a study on awareness level of people about stock brokers in New Delhi. What factors should India Infoline Ltd. consider to become a market leader in all

segments? To find out the problems faced by clients while trading with India Infoline Ltd. To identify the drawbacks in the current system of trading and suggesting

improvements in the same.

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Sample selection, data collection, descriptive summary

Sample Design:

A sample design is a definite plan for obtaining a sample for a given population. It refers to the technique or the procedure and the researcher would adopt in selecting items of sample. Sample design may as well lay down the number of items to be included in the sample i.e. the size of the sample. Sample design is determined before data is collected. Sampling Area New Delhi 50 clients of India Infoline Ltd. and 20 clients of other corporate

Sampling Size brokers.

Data Collection:
Data collection is most important part of research because the research is based on it. There are several ways of collecting data which differs considerably in terms of cost, time and other resources at the disposal of the researchers. The data collection method for this research work is from primary source as well as secondary. The survey is carried out through a non-probability convenience sampling in New Delhi through a structured questionnaire.

Type of Data:
There are two types of Data: 1) 2) Primary Secondary

Primary Source:Source from where first-hand information gathered directly are called
primary source and thus information collected is called Primary data. In case of above study the primary source was consumer. Primary Data: - The techniques available for collecting primary data are: Observation method Questionnaire method Interview method

Secondary Source: - The source of information already gathered for some other purpose is
available is called secondary data, with regard to my study secondary sources of my study where records of the company, magazines and papers. The Secondary data was collected on the basis of requirement, conveniences and reliability of the data. 10 | P a g e Functioning of stock market in India

Out of these I have chosen questionnaire method to collect the data because of low cost, free from the bias of other interviewer and respondent.

Collection of data through Questionnaire:

This method of data collection isquite popular particularly in case of big enquires, private individuals, research workers, private and public organizations and even is adopting it by governments. In this method I went to the clients personally and also on calling asked them to fill the questionnaire. For the clients who were on call I sent them the questionnaire by mail. For the purpose of research project I had applied the following process:

1- Preparation of questionnaire 2-Data Collection 3-Tabulation of questionnaire 4-Preparation of different charts 5-Analysis and interpretation

AnalysisCOMPARISON OF CORPORATE STOCKBROKERS

Criteria Types of Account A/C Opening Fees(Trading + Demat) Brokerage Intraday Delivery AMC Lead Time

Offer Provided 2 555/- +300/0.05% 0.5% 300/1 Week

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Margin

Intraday Delivery

3 times 12 times 18% T+5 ODIN

Interest Rate Sauda Expiry Software

Table- 1.2

Criteria Types of Account A/C Opening Fees(Trading + Demat) Brokerage Intraday Delivery AMC Lead Time Margin Intraday Delivery Interest Rate Sauda Expiry Software

Offer Provided 2 500/- + 40/0.01% 0.10% 300/4-5 days 4 times 10 times 18% Never ODIN

Table- 1.3

Criteria Types of Account A/C Opening Fees(Trading + Demat)

Offer Provided 2 2520/-

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Brokerage

Intraday Delivery

0.03% 0.30% 2000/7-8 days

AMC Lead Time Margin Intraday Delivery Interest Rate Sauda Expiry Software Table- 1.4

5 times 10 times 18% T+3 GOTX

Criteria Types of Account A/C Opening Fees(Trading + Demat) Brokerage Intraday Delivery AMC Lead Time Margin Intraday Delivery Interest Rate Sauda Expiry Software Table- 1.5

Offer Provided 2 200/- + 651/0.03% 0.30% 350/1 week 7 times 10 times 18% T+5 ODIN

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Criteria Types of Account A/C Opening Fees(Trading + Demat) Brokerage Intraday Delivery AMC Lead Time Margin Intraday Delivery Interest Rate Sauda Expiry Software Table- 1.6

Offer Provided 2 900/0.03% - 0.10% 0.25% - 0.50% None 1 Week 3 times 12 times None T+5 Power Indiabulls(750/-)

Brokerage chargedAmount in percentage Name of companies Figure no. 1.0

Interpretation:
On an average India Infoline is rated highest on brokerage while on the other hand Angel Stock Broking Limited is the company that charges the least brokerage on both intraday and delivery transactions. Also India Infoline Ltd. Is flexible in its brokerage charged the brokerage in the data is just standardized.

Analysis of questionnaire(Clients of India Infoline Ltd.)

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Q1: Who are you? No. of Respondents (a) Trader (b) Investor Table- 1.7 Figure no. 1.1 15 5 Percentage 75% 25%

Interpretation:
After survey, it is found that 75% of the respondents are traders and the rest 25% are investors. Q2: What is the basic purpose of your investment? No. of Respondents (a) Returns (b) Capital Appreciation (c) Tax Benefits (d) Others (specify). Table- 1.8 14 3 1 2 Percentage 70% 15% 5% 10%

Figure no. 1.2

Interpretation:
After survey, it is found that the purpose of 70% of the respondents are returns & of 15% of the respondents are capital appreciation & of 5% of the respondents are tax benefits & the rest are others. Table- 1.9

Q3: What is the time horizon of your investment?

No. of Respondents (a) 1-30 days 3 Percentage 15%

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(b) 1-6 months (c) More than 6 months (d) Depend upon profits

1 1 15

5% 5% 75%

Figure no. 1.3

Interpretation:
After survey, it is found that the time horizon of 15% of the respondents are 1-30 days & of 5% of the respondents are 1-6 months & of 5% of the respondents are more than 6 months & for the rest 75% are depend upon profits. Table- 2

Q4: How would you rate the following elements of India Infoline Ltd.?
Excellent Very good 35% Good 40% Poor 10%

(a)Knowledge of
employees you deal with (b) Ability to resolve problems (c) Quality of advice

15%

20% 20%

40% 30%

35% 45%

5% 5%

Figure no. 1.4

Interpretation:
After survey, it is found that 40% of the respondents feel that knowledge of employees of IIFL are good and 40% of the respondents feel that ability to resolve problems of IIFL are very good and 45% of the respondents feel that quality of advice of IIFL are good.

Analysis of questionnaire(Non-Clients of India Infoline Ltd.)

Table- 2.1 Q1: In which company you have d-mat and trading account? No. of Respondents Percentage

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(a)Karvy Securities
(b) India Infoline Security Pvt. Ltd. (c) Indiabulls Securities Ltd. (d) Others

6 18

12% 36%

14 12

28% 24%

Figure no. 1.5

Interpretation:
After survey, it is found that 12% of the respondents have d-mat & trading account in Karvy Securities whereas 36% of the respondents are in India Infoline & 28% of the respondents are in Indiabulls. Table 2.2 Q2: Are you satisfied with you present broking firm? No. of Respondents (a) Yes (b) No 36 14

Figure no. 1.6

Interpretation:
After the survey, it is found that India Infoline is the company whose clients are most satisfied with the services of the company and other column signifies that some other company(s) is rated as the least preferred companies of the respective clients Table- 2.3

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Q3: State the reason for your satisfaction? No. of Respondents Percentage 30% 40% 18% 12%

(a)Services
(b) Brokerage (c) Operating Expenses (d) Others

15 20 9 6

Figure no. 1.7

Interpretation:
After the survey, it is found that brokerage is the most convenient factor on which the respondents are satisfied. The brokerage chart (mentioned above) also displays that Angel Stock Broking has the least brokerage charged from its clients.

DIFFERENCE BETWEEN BSE AND NSE

Basis
Market capitalization listedcompanies

BSE
of Rs. 4,670,227 crore

NSE
Rs. 3,367,350 crore.

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Number of members Number of listed companies Geographical spread Website Main Index Owner

951 (Oct 2007) 5,140 (June 2012) Presence in 417 cities www.bseindia.com BSE Sensex Bombay Stock Exchange

1,009 as on March 2007 2,144 (June 2012) Presence in 1,486 cities www.nse-india.com S & P CNX Nifty National Stock Exchange ofIndia Limited

Key people Claim to fame

Madhu Kannan(CEO,MD)

Mr. Ravi Narain ( MD)

Oldest stock exchange in Asia. Third largest stock exchange in the world in terms of volumes.

Established in Name Location Index value No. of trader workstations Table- 2.4

1875 Bombay Stock Exchange Mumbai 17,326.01 ( 2009) 15,151(Oct 2007)

1993 National Stock Exchange Mumbai 6,097 (2007)

ABOUT NSE AND BSE

Formation:
The National Stock Exchange of India 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. In April 1993, it was recognized as a stock exchange under the Securities Contracts (Regulation) Act, 1956. NSE commenced operations in the Wholesale Debt Market (WDM) segment in June 1994. The Capital Market (Equities) segment of the NSE commenced operations in November 1994, while operations in the Derivatives segment commenced in June 2000. 19 | P a g e Functioning of stock market in India

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 was 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. Earlier an Association of Persons (AOP), the Exchange is now a demutualised and corporatized entity incorporated under the provisions of the Companies Act, 1956, pursuant to the BSE (Corporatization and Demutualization) Scheme, 2005 notified by the Securities and Exchange Board of India (SEBI).Bombay Stock Exchange Limited received its Certificate of Incorporation on 8th August, 2005 and Certificate of Commencement of Business on 12 th August, 2005. The Exchange has succeeded the business and operations of BSE ongoing concern basis and its recognition as an Exchange has been continued by SEBI.

Members:
While the BSE has over 874 members-brokers across the country, NSE has more than 1000 members. In NSE, a prospective trading member is admitted to any of the following combinations of market segments: Wholesale Debt Market segment, Capital Market (CM) and the Futures and Options segments, CM Segment and the WDM segment, or CM Segment, the WDM and the F and O segment. There is no such thing at BSE and members join as any of the following: Trading Members, Trading cum Clearing Members, Professional clearing member, Limited trading member and Self Clearing member.

For NSE: In order to be admitted as a trading member, the individual trading member/at least
two partners of the applicant firm/at least two directors of the applicant corporate must be graduates and must possess at least two years' experience in securities markets. The applicant for trading membership/any of its partners/shareholders/directors must not have been declared defaulters on any stock exchange, must not be debarred by SEBI for being associated with capital market as intermediaries and must not be engaged in any fund-based activity. The trades executed on the Exchange may be cleared and settled by a clearing member. The initial joining fee for a member at BSE is Rs. 90 Lakhs while that for an NSE member is between 100 to 300 Lakh depending on the kind of membership one chooses. In addition to annual fees, NSE members are required to pay transaction charges on trades undertaken by them. They pay transaction charge at the rate of Rs. 3.5 for every Rs. 1 lakh of 20 | P a g e Functioning of stock market in India

turnover in the CM segment. The transaction charges payable to the exchange by the trading member for the trades executed by him on the F&O segment are fixed at the rate of Rs. 2 per lakh of turnover (0.002%) subject to a minimum of Rs. 1, 00,000 per year. At BSE, these fees differ according to the various types of members.

For BSE:The requirements to becoming a member are:

1. Authorized By NSC as A Brokerage House 2. Authorization of BSE 3. Negotiation from NSC 4. Trained Staff at BSE (Brokers, Traders, Accountants) 5. Data on Member Registration 6. Company By-Laws 7. Membership Fee 8. Financial Statements 9. Company Mission Statements 10. Handbook on Internal Operations & Control 11. Personal Information File for Management and Specialized Staff 12. Contribution to the Guarantee Fund 13. Payment for the Licensed Access to Use the Operating System

Listing:
Listing means formal admission of a security to the trading platform of the Exchange. In BSE, the securities may be of any public limited company, Central or State Government, quasigovernmental and other financial institutions/corporations, municipalities, etc. The objectives of listing are mainly to provide liquidity to securities; mobilize savings for economic development; protect interest of investors by ensuring full disclosures. The Exchange has a separate Listing Department to grant approval for listing of securities of companies in accordance with the provisions of the Securities Contracts (Regulation) Act, 1956, Securities Contracts (Regulation) Rules, 1957, Companies Act, 1956, Guidelines issued by SEBI and Rules, Bye-laws and Regulations of the Exchange. A company intending to have its securities listed on the Exchange has to comply with the listing requirements prescribed by the Exchange. At NSE, the following criterias are to be fulfilled when one applies to be listed:

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 Approval of Memorandum and Articles of Association Approval of draft prospectus Submission of Application Listing conditions and requirements Once a company fulfils these criterias then they have to submit the following to the board: 1. A brief note on the promoters and management. 2. Company profile. 3. Copies of the Annual Report for last 3 years. 4. Copies of the Draft Offer Document. 5. Memorandum & Articles of Association. The listing fees depend on the companies paid up capital at both NSE and BSE. While the initial listing fee at NSE is Rs.7500, it is Rs.20, 000 at BSE. The annual listing fees for a company with a paid up capital up to Rs. 5 Crores is Rs. 10,000 at BSE while it is Rs. 8,400 at NSE. For a company with paid up capital between 5 to 10 crores, BSE charges Rs. 15,000 while NSE charges Rs. 10,000.

Indices:
The main Index of BSE is SENSEX while that of NSE is CNX Nifty. The other indices at BSE are: BSE 500, BSE 100, BSE 200, BSE PSU, BSE MIDCAP, BSE SMLCAP, BSE BANKEX, BSE Tech, BSE Auto, BSE Pharma, BSE Fast Moving Consumer Goods (FMCG), BSE Consumer Durables (SYMBOL: Cons Dura), BSE Metal. NSE also set up as index services firm known as India Index Services & Products Limited (IISL) and has launched several stock indices, including: S&P CNX Nifty, CNX Nifty Junior, CNX 100 (= S&P CNX Nifty + CNX Nifty Junior), S&P CNX 500 (= CNX 100 + 400 major players across 72 industries), CNX Midcap (introduced on 18 July 2005 replacing CNX Midcap 200).

Findings and Interpretation

During my summer internship I came across several observations about Indian stock market. They can be described as follows22 | P a g e Functioning of stock market in India

Behaviour of the investor- Markets have not been doing great in past 5 years or so
either we can say that it is not doing great after 2008 economic crisis. Generally people who invest in the market behave with greed and fear. Greed comes when market is doing great and they start injecting their money in the stocks and they continue to do so and in process of they overleverage and buy at expensive levels of the marketand end up burning their hands. On the other hand when market is not doing well stocks are falling nifty and sensex both are going down then due to the fear of losing money people do not want to invest.In fact most retail investors end up selling at lower levels due to the fear of losing more money. These are the times to get into the market as the valuations are cheap. I tried to categories the behaviour of the investor in two subheadings1. Herd mentalityrefers to the psychological process of the general investors. Actually what I am basically trying to explain they move with the mob. If a person wants to make profit and wants to minimize his loss then that person needs go contrary to market sentiments. Market sentiment is the general prevailing attitude of investors as to anticipated price development in a market. 2. Impact of news flow Often we see that market reacts very strangely to various news. News drives the market. Good news lifts the market. Bad news dampens growth. The effect, however, is not symmetric: good news does not lift the market as much as bad news depresses it. in a bear market, the market is waiting for bad news and bad news shakes market confidence more than if it has been a bull market.If we take a current example of RBI no reduction in interest rate it effected the market. Market sentiments were negative after this news because everyone is expecting a reduction of 25 basis point . Last time RBI surprised everyone after a reduction of 50 basis points in the interest rate. Although RBIsdecision of no rate cut did not hampered the market in great extent but still it had affected the market negatively.

Dynamics of the industry- When the market goes down retail segment always
suffers because people run away from the market. They tend to loose their confidence in the market where as wealth managers and super HNIs makes profit out of this situation because the amount of money they are managing is huge and they put their mind and brain into it. When everyone trying to get the money out of the market and run away they invest their money at that time because it is the right time to invest. If we take a live example see in the year 2008 nifty almost touched 3000 mark that time everyone whoever invested their money in the market took out their money because they already burned their hands

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into that. So it was the right opportunity for the investment rather than running away because the value of the stocks were too low as on now it is above 5000.

Other findings
India Infoline is among the best broking firms, preferred by the customer.

Customer of India Infoline is satisfied with its service.

Most of the companies provide similar brokerage slab to the customer.

People trade only in equity; most of the people do not trade in derivatives & commodity.

People prefer the firm which offers low brokerage . People are not aware of the benefits of trading in derivatives so lots need to be done in this direction.

People generally prefers safe & risk less investment avenue. Some people have fear of stock market in their mind.

People wants to invest in stock market but they have not adequate knowledge of stock market so firms should educate people & help them to invest in stock market.

Summary and conclusion

Its been a very exciting and memorable journey while working with IIFL. On the first placeit was very hard to understand the working of brokers through terminals. It took almost a week to understand all the working then I started my field work like meeting with clients, opening Demat a/cs , calling to inactive clients and pitching about our new product offerings . In the field there were many occasions where people did not want to talk to me or to our team about our product because of slowness and bearish nature of the stock market but I did not give up. While calling to different inactive clients I realized how hard to convince people when they are not in front of you or not interested in you. I got a 24 | P a g e Functioning of stock market in India

bucket of help from my company mentor. He always stayed beside me always backing me up, guiding me and asking me questions, never got angry even though I asked weird question because of my inquisitive nature . One thing I came to know about the people who want to invest in the stocks that they start with a vision of investment but after a while they start trading and they tend to lose their patience and burn their hands. If I talk about my experience on the field I will say I learned a lot from it actually they groomed my personality in a great manner and I felt like great. My mentor taught me one thing very quickly on the first day of my field that dont be ashamed of approaching to any unknown person because who knows that person turns up into a positive prospect. Every day came with a new experience for me sometimes it was very good but sometime it was worst that you dont want to feel it again. On the third week it was my experience of setting up a canopy and promoting our product. I went to meet to the clients who wanted to open a Demat a/c with us my duty was there to listen and reply to their queries and guide them how to fill the form. Everyone has the same question like about the brokerage and about the service facility. In recent there were a news about some broking firms about the fraud that they made so people are now suspicious about all the broking firms. All in all now I feel like I can also work in the field thanks to IIFL. Sometimes we need to try things besides running away from them.

Learnings from the SIPIt wasvery learning experiences in India Infoline Ltd. Things that I learnt in India Infoline Ltd are as follows Market Basics- Terms that we should know if we want to invest in the market these terms are called market basics. Ex. Electronic trading, Exchanges in India, Index, Execution of an order, contract note, split, buy back, settlement cycle, short selling , auction , bad delivery etc. Normally a lot of us do not know these terms. Interpersonal skills- I did studied interpersonal skill but how to implement that in the field thats what I learnt during my sip. Meeting different clients for different purposes and convincing them. Every day came with new surprises because if you meet different people you will have different experience with 25 | P a g e Functioning of stock market in India

everyone. Dealing with the clients who are angry with the services was quite learning for me. Mechanism of trading in the stock market- Every stock broking firm has their own terminals. Terminals are basically the softwares which provide you the electronic screen for trading. I learnt how to operate them. How trading takes place in derivatives. Difference between futures and options. As we all studied a bit about the futures and options but in practical its quite different from the theory. Presentation skills- During my SIP I went to few places with my AVP for FLAME presentation. These presentations are basically help people in light of financial literacy. I presented the ppts over there . Resolving the queries of the people during my presentation. All these activities helped me to improve my presentation skill. I learnt the most important thing that my company mentor told me that if you argue in the right direction then nobody can say that you are wrong.

Reference
http://www.indiainfoline.com/ http://www.investopedia.com/#axzz1zRipq43I http://www.yourmoneysite.com/ http://www.bbfs.co.in/ http://www.wikipedia.org/ www.nseindia.com/ http://www.slideshare.net/ http://flame.org.in/FAQs.aspx

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