PROJECT REPORT On

ANALYSIS OF CONSUMER BEHAVIOR TOWARDS SHARE TRADING AND SALES PROMOTION OF INDIABULLS SECURITIES LTD

In the pa t!a" #$"#!""%ent &# the t'& (ea #$"" t!%e PGDBM )E*$!+a"ent t& MBA,

P &-e.t G$!/e Fa.$"t( G$!/e M 0 V!-a( Ba11a Ra2h%! S$n/ (a" D!+!2!&na" Sa"e2 Hea/ NDIM In/!an1$""2 Se.$ !t!e2 Lt/0 Ne' De"h! M!22

Ne' De"h!

Submitted by:

Utta% Seth
R&"" N&3 45 PGDBM )6778974,

Ne' De"h! In2t!t$te &# Mana:e%ent

60-61 Tughlakabad Institutional Area \ New Delhi-110062

ACKNOWLEDGEMENTS
I would like to express my sincere thanks to Indiabulls Securities Ltd., Delhi for giving me the opportunity to carry out the Summer Internship Program in their organi ation. !he whole period spent with the organi ation has been of immense learning

experience about the Indian Stock "arket. Preparing a pro#ect of such a kind is not an easy task in itself and I am sincerely thankful to all those people who help me lot, in preparing and completing this pro#ect. I am grateful to Indiabulls Securities Ltd. who has given me this opportunity to carry out the pro#ect Analysis of Consumer Behavior Towar s Share Tra in! an Sales "romo#ion of

$n ia%ulls Se&uri#ies L# '( $ study on investor%s perception their behavior about e&uities. I sincerely thank to "r. 'i#ay (abbar )Divisional Sales *ead, Indiabulls Securities Ltd., Delhi+ for providing me this valuable learning opportunity. I would also like to thank "s. ,ashmi Sundryal - .aculty /uide, 0DI"1 Delhi for her valuable guidance and insight amidst her busy schedule. .inally I would like to thank "r. 'ineet 2handani ),elationship "anager+ my pro#ect supervisor without his help and guidance the completion of this pro#ect would have become difficult task.

$NDE)
3(452!I'5 *IS!3,6 3. S!327 582*$0/5 23"P$06 P,3.IL5 a+ Introduction b+ Philosophy c+ *istory and other corporate matters overview S*$,5 !,$DI0/ 3,/$0I9$!I30 2*$,! P,3D:2!S $0D S5,'I25S I0DI$(:LLS - I0 05;S <==> ,5S5$,2* "5!*3D3L3/6 .I0DI0/S $0D $0$L6SIS ,523""50D$!I30S (I3(LI3/,$P*6

E)EC*T$+E S*MMA,Investing in e&uities in a market like India is speculative and involves risk that may be greater than other types of investment strategies. (efore investing an Investor should be careful enough about him investment decision to avoid erosion of wealth. $s seen in the recent times the volatility of market is more detrimental to the retail investors as it seems to be lucrative for speculative gains of short duration of time. *ence an investor has to evaluate his

options carefully for a prudent investment, keeping long1term hori on in mind. !he report has tried to bring out the parameters those are of paramount importance to general public dealing in an e&uity trading on day1to day and delivery base trading. !he working methodology has been discussed i.e. the data collection methods, sampling methods and the survey &uestionnaire methods. !hee

&uestionnaire prepared is designed so as to cover a wide range of customer ?touch points@ !he report given a view about the investors perception that what thy think while making investments in shares. $ sample of A== people was selected randomly and survey was done as per the parameters of the &uestionnaire. !he results of

every parameter have been included in this report and shown

graphically )Pie 2harts, bar graphs etc.+ $ complete structure of the research design has been included. $part from above discussed points the brief history of Indiabulls Securities Ltd, its business diversification and a brief introduction about the concept of share trading.

OB.ECT$+E

!o study investor%s behavior towards different attributes such as risk, return, li&uidity etc. of investment in 5&uities. !o study the issues and challenges that investor%s face while making investment in share market. !o study the preferences and perceptions of investors regarding various financial products from the stable of Indiabulls Securities Ltd. so that the firm can benefit from the findings of the report in launching any new investment product in future. !o study the consumers perception in respect of investment in shares !rading. !o study about ,isk "anagement with the help of e&uities.

/$STO,- O0 STOCK E)C/ANGE

!he only stock exchanges operating in the ABth century were those of (ombay set up in ACD> and $hemadabad set up in ACBE. !hese were organi ed as voluntary non1profit making organi ation of brokers to regulate and protect their interests. (efore the control on securities trading became a central sub#ect under the constitution in AB>=, it was a state sub#ect and the (ombay securities contract )230!,3L+ $ct of AB>< used to regulate trading in securities. :nder this $ct, the (ombay stock exchanges in AB<D and $hemadabad in ABFD. During the war boom, a number of stock exchanges were organi ed in (ombay, $hemadabad and other centers, but they were not recogni ed. Soon after it became a central sub#ect, central legislation was proposed and a committee headed by $.D. /orwala went into the bill for securities regulation. 3n the basis of committee%s recommendations and public discussions the securities contracts )regulations+ $ct became law in AB>G.

Defini#ion of S#o&1 E2&han!e

?Stock exchange means anybody or individuals whether

incorporated or not, constituted for the purpose of assisting, regulation or controlling the business of buying, selling or dealing in securities.@ It is an association of member brokers for the purpose of self

regulation and protecting the internets of its members. It can operate only if it is recogni ed by the /ovt. under the securities contract )regulation+ $ct, AB>G the recognition is granted under section F of $ct by the 2entral /ovt. ministry of finance.

Byelaws
(eside the above act, the securities contract )regulation+ rules were also made in ABD> to regulate certain matter of trading on Stock 5xchange. !hese are also byelaws of the exchanges, which are concerned with following sub#ects. 3peningH2losing of the Stock 5xchange, timing of trading,

regulation of blank transfer, regulation of (adla or carryover business, control of statement, and other activities of stock exchange, fixation of margins, fixation market price or making price, regulation of intraday )#obbing+, regulation of broker trading, brokerage charges, trading rules on exchanges, attribution and settlement of disputes, settlement and clearing of the trading etc.

,e!ula#ion of s#o&1 e2&han!e

!he securities contract )regulation+ is the basis of the stock exchange in India. 0o exchange can operate legally without the /ovt. permission or recognition. Stock exchanges are given

monopoly in certain areas under section AB of the above $ct to ensure that the control and regulation are facilitated. ,ecognition can be granted to a stock exchange provided certain condition are satisfied and the necessary information is supplied to the

government. ,ecognition can also be withdrawn, if necessary. ;here there are no stock exchanges, the government can license some of the brokers to perform the function of stock exchange in its absence.

SEC*,$T$ES AND E)C/ANGE BOA,D O0 $ND$A 3SEB$4

S5(I was setup as an autonomous regulatory authority by the /overnment of India in ABCC ?to perform the interest of investors in the securities and to promote the development of, and to regulate the securities market and for matters connected therewith or incidental thereto.@ It is empowered by two $cts namely the S5(I act, ABB< and the securities contract )regulation+ $ct AB>G to perform the function of protecting investor%s right and regulating the capital market.

Bom%ay S#o&1 E2&han!e

!he stock exchange, "umbai, popularly known as ?(S5@ was established in ACD> as ?!he 0ative share and stock broker association@, as a voluntary non1profit making association. It has an evolved over the year into its present status as the premiere stock exchange in the country. It may be noted that the stock exchanges the oldest one in the $sia, even older than the !okyo Stock 5xchange, which was founded in ACDC. !he 5xchange, while providing an effective and transparent market for trading in securities, uphold the interest of the investors and ensure redressed of their grievances, whether against the

companies or its own member brokers. It also strives to educate and enlighten the investors by making available necessary

informative inputs and conducting investor education programmes. $ governing board comprising of B elected directors, < S5(I nominees, D public representatives and an executive director is the apex body, which decides the policies and regulates the affairs of the exchanges. !he executive director as the chief executive officer is responsible for the day today administration of the exchange. !he average

daily turnover of the exchange during the year <===1=A )$pril1 "arch+ was ,s. FBCE.AB crores and average number of daily trades >.GB lakhs. *owever the average daily turn over of the exchange during the year <==A1=< has declined to ,s. A<EE.A= crores and number of average daily trades during the period to >.AD lakhs. !he average daily turn over of the exchange during the year <==<1 =F had declined and number of average daily trades during the period is also decreased. !he (an on all deferral products like (L5SS $0D $L(" in the Indian capital markets by S5(I with effects from 4uly <, <==A, abolition of account period settlements, in all scripts traded on the exchanges with effect from Dec FA, <==A, etc., have adversely impacted the li&uidity and conse&uently there is a considerable decline in the daily turn over at the exchange. !he average daily turn over of the exchange present scenario is AA=FGF )laces+ and number of average daily trades A=>D )laces+.

BSE $n i&es
In order to enable the market participants analysis etc., to track the various ups and downs in the Indian stock market, the 5xchange has introduced in ABCG an e&uity stock index called (S51S50S58 that subse&uently became the barometer of the moments of the share prices in the Indian Stock market. capitali ation weighted@ index of F= It is a ?"arket components stocks

representing a sample of large, well1established and leading companies. !he base year of Sensex is ABDC1DB. !he Sensex is

widely reported in both domestic and international markets through print as well as electronic media. Sensex is calculated using a market capitali ation weighted method. $s per this methodology, the level of the index reflects the total market value of all F=1component stocks form different industries related to particular base period. !he total market value of a

company is determined by multiplying the price of its stock by the number of shares outstanding. Statisticians call an index of a set of combined variables )such as price and number of shares+ a composite Index. $n Indexed number is used to represent the

results of this calculation is order to make the value easier to work with the track over a time. It is much easier to graph a chart based on Indexed values than one based on actual values world over ma#ority of the well1known Indices are constructed using ?"arket capitali ation weighted method@. In practice, the daily calculation of S50S58 is done dividing the

aggregate market value of the F= companies in the Index Divisor. !he keeps the Index comparable over a period or time and if the reference point for the entire Index maintenance ad#ustments. S50S58 is widely used to describe the mood in the Indian Stock "arkets. (ase year average is changed as per the formula new

base year average I old base year averageJ )new market valueHold market value+.

Na#ional S#o&1 E2&han!e

!he 0S5 was incorporated in 0ow ABB< with an e&uity capital of ,s. <> crores. !he international securities consultancy )IS5+ of IS5 has prepared the

*ong 7ong has helped in setting up 0S5.

detailed business plans and installation of hardware and software systems. insurance !he promotions for 0S5 were financial institutions, companies, banks an S5(I capital market ltd.,

Infrastructure leasing and financial services ltd. and stock holding corporation ltd. It has been set up to strengthen the move towards

professionalisation of the capital market as well as provide nation wide securities trading facilities to investors.

0S5 is not an exchange in the traditional sense where brokers own and mange the exchange. $ two tier administrative set up involving a company board and a governing abroad of the exchange is envisaged.

0S5 is a national market for share PS: bonds, debentures and government securities since infrastructure and trading facilities are provided.

NSE5N$0T!he 0S5 on $pril <<, ABBG launched a new e&uity Index. !he 0S51 >=. !he new index, which replaces the existing 0S51A== index, is expected to serve as an appropriate Index for the new segment of futures and options.?0ifty@ means 0ational Index for .ifty

Stocks.!he 0S51>= comprises >= companies that represent <= board Industry groups with an aggregate market capitali ation of around ,s. A,D=,=== crores. $ll companies included in the Index

have a market capitali ation in excess of ,s. >== crores each and should have traded for C>K of trading days at an impact cost of less than A.>K. !he base period for the close of prices on 0ov F, ABB>, which makes one year of completion of operation of 0S5%s capital market segment. !he base value of the Index has been set at A===.

NSE5M$DCA" $NDE)
!he 0S5 madcap Index or the 4unior 0ifty comprises >= stocks that represents <A abroad Industry groups and will provide proper representation of the madcap segment of the Indian capital "arket. $ll stocks in the index should have market capitali ation of greater than ,s. <== crores and should have traded C>K of the trading days at an impact cost of less <.> K. !he base period for the index is 0ov E, ABBG, which signifies two years for completion of operations of the capital market segment of the operations. !he base value of the Index has been set at A===. $verage daily turn over of the present scenario <>C<A< )Laces+ and number of averages daily trades <AG= )Laces+. A# 6resen#7 #here are 89 s#o&1 e2&han!es re&o!ni:e #he se&uri#ies &on#a&# 3re!ula#ion4 A&#7 ;<=>' un er

$NT,OD*CT$ON

Indiabulls is IndiaLs leading retail financial services company with AF> locations spread across B> cities. ;hile its si e and strong balance sheet allow them to provide you with varied products and services at very attractive prices, over D>= 2lient ,elationship "anagers are dedicated to serving your uni&ue needs. Indiabulls is lead by a highly regarded management team that has invested cores of rupees into a world class Infrastructure that provides there clients with real1time service M <EHD access to all information and products. !heir flagship $n ia%ulls "rofessional Ne#wor1
TM

offers real1time prices, detailed data and news,

intelligent analytics, and electronic trading capabilities, right at your finger1tips. !his powerful technology is complemented by there knowledgeable and customer focused ,elationship "anagers. We are Crea#in! a Worl of Smar# $nves#or

Indiabulls offers a full range of financial services and products ranging from 5&uities to Insurance to enhance your wealth and hence, achieve your financial goals. IndiabullsL 2lient ,elationship "anagers are available to you to help with your financial planning and investment needs. !o provide the highest possible &uality of service, Indiabulls provides full access to all our products and services through multi1channels

T/E $ND$AB*LLS "/$LOSO"/- ? -O* COME 0$,ST

;e have created a uni&ue organi ation that is designed for you the Smart Investor . ;e passionately believe in the Smart Investor who wants to make his own educated investment choices and demands world class access to a full range of services and products ranging from 5&uities to Insurance, combined with the highest level of integrity, service and professionalism. Indiabulls is a full service investment firm offering clients access to a tremendous range of financial services from AF> locations across B> cities. ;e have a strong team of over D>= 2lient ,elationship "anagers focussed on serving your uni&ue needs. 3ur world class infrastructure, built with tens of crores of investment, provides our clients with real1time service, multi1channel M <EHD access to all information and products. $s weLve expanded and developed to serve the needs of all kinds of investors, weLve been guided by one underlying philosophyN You come first. ;e are proud to introduce to you $n ia%ulls "rofessional Ne#wor1TM that offers real1time prices, e&uity analysis, detailed data and news, intelligent analytics, and electronic trading

capabilities, right at your finger1tips. !his powerful technology is complemented by our knowledgeable and customer focussed

,elationship "anagers who are available to help with your financial planning and investment needs.

;e invite you to learn more about Indiabulls by calling A G== AA AAF= )toll free+ or visit our AF> Indiabulls 3ffices 0ationwide or explore the services we offer through the Indiabulls "arket !rader.!"

/$STO,- AND OT/E, CO,"O,ATE MATTE,S O+E,+$EW

$n ia%ulls .inancial Services Limited was incorporated on 4anuary A=, <=== as "Hs 3rbits Info!ech Private Limited at 0ew Delhi under the 2ompanies $ct, AB>G with ,egistration 0o. >> - A=FACF. !he name of the 2ompany was changed to "Hs. $n ia%ulls .inancial Services Private Limited on "arch AG, <==A due to change in the main ob#ects of the 2ompany from Infotech business to Investment M .inancial Services business. It became a Public Limited 2ompany on .ebruary <D, <==E and the name of 2ompany was changed to "Hs. $n ia%ulls .inancial Services Limited. 2ompany was promoted by three engineers from II! Delhi, and has attracted more than ,s.D== million as investments from venture capital, private e&uity and institutional investors such as L0" India Internet 'entures L# ., !ransatlantic 2orporation L# ., .arallon 2apital Partners, L.P., , , 2apital Partners L.P., and Infinity !echnology !rustee Pvt. L# . and has developed significant relationships with large commercial banks such as 2itibank, *D.2 (ank, :nion (ank, I2I2I (ank, $(0 $mbro (ank, Standard 2hartered (ank, Lord 7rishna (ank and ILM.S. 2ompany and there subsidiaries have facilities from the above mentioned banks and financial institutions aggregating to ,s. ADG= million' 2ompanies head&uarters are co1located in "umbai and Delhi, allowing it to access the two most important regions for Indian financial markets, the ;estern region including "umbai, rest of "aharashtra and /u#aratO and the 0orthern region, including the

0ational 2apital !erritory of Delhi, nearby cities, parts of *aryana, :ttar Pradesh and Pun#abO and access the highly skilled and educated workforce in these cities. !he "arketing and Sales efforts are head&uartered out of "umbaiO with a regional head&uarter in DelhiO and its back office, risk management, internal finances etc. are head&uartered out of Delhi, allowing our 2ompany to scale these processes efficiently for the nationwide network.

Main O%@e&#s Of The Com6any

The main o%@e&#s #o %e 6ursue in&or6ora#ion areA 1. !o hold investments in various step1down subsidiaries for investing, ac&uiring, holding, purchasing or procuring e&uity shares, debentures, bonds, mortgages, obligations, se&uri#ies of any kind issued or guaranteed by our 2ompany. 8' !o provide financial consultancy servicesO to provide investment advisory services on the internet or otherwiseO provide financial consultancy in the area of personal and corporate financeO publish books and 2D ,3"s and any other information related to the above. B' !o conduct the business of sale, purchases, distribution and transfer of shares, debts, instruments and hybrid financial instruments and to perform all related, incidental, ancillary and allied services. 9' !o conduct depository participant servicesO to conduct de1 %y #he Com6any on i#s

materiali ation

and

re1materiali ation

of

sharesO

set

up

depository participant centers at various regions in India and to perform all related, incidental, ancillary and allied services. =' !o receive funds, deposits and investments from the public, /overnment agencies, financial institutions and 2orporate

bodiesO grant advances and loansO conduct advisory services related to banking activities, pro#ect financing, funding of mergers and ac&uisition activitiesO fund management and activities related to money market operations. >' !o carry on the business of portfolio management services, investment advisory servicesO custodial servicesO asset

management servicesO leasing and hire purchaseO mutual fund services and to act as brokers of real estate and financial instruments. C' !o carry on the business of financingO provide lease and hire purchase servicesO to provide consultancy in the area of lease and hire purchase financing. D' !o operate mutual fundsO receive funds from investorsO e&uity or debt instrument research activity instrument in debt andHor e&uity instruments.

Cre i# ,a#in!
$n ia%ulls Se&uri#ies Limited has been granted PP,AQ% rating for its unsecured short term borrowing program of ,s. <== million. 'ide letter dated "ay >, <==E the rating agency has increased the

unsecured short term borrowing limit to ,s. F<= million maintaining the PP,AQ% rating. ISL also en#oys P$Q% rating for medium to long term unsecured borrowing program of ,s. <== million. !he ,ating to the company has been assigned by 2redit $nalysis ,esearch Limited. $s for the present issue of e&uity shares of our 2ompany, credit rating is not re&uired.

Sharehol ers A!reemen#

Shareholders $greement was entered into by and among our 2ompany )formerly 3rbis Infotech Private Limited+, Infinity

!echnology !rustee Private Limited as the trustee of Infinity 'enture India .und, L0" India Internet 'entures Limited,

!ransatlantic 2orporation Limited )together the ?'2 Investors@+ and the Promoters dated 0ovember <, <===. !he '2 Investors invested an aggregate amount of ,s. <=G,===,=== in our 2ompany for which they were issued >>,E<> e&uity shares at an average price of ,s. F,DAG.DF per e&uity share. Pursuant to a letter agreement )the ?Letter $greement@+ dated "ay <D, <==E between the parties to the Shareholders $greement, each of the '2 Investors have agreed not to enforce rights that have accrued to them before the said Letter $greements and have agreed that the Shareholders $greement, together with all the rights and obligation on the parties will stand terminated immediately upon the listing of the shares of our 2ompany and conse&uent to the listing, the rights of the

Shareholders $greement, including the rights that have arisen prior to such termination shall be terminated. $ copy of the Shareholders

$greement, and a copy of the Letter $greement terminating the Shareholders $greement are available for inspection as material documents at the corporate offices of our 2ompany.

Key Com6e#i#ive S#ren!#hs

Diverse Bran&h Ne#wor1 Since 2ompany inception in .6 <=== 2ompany and its subsidiaries have grown from a single location to a nationwide network spread over AF> offices in B> cities. !hey have a pan India distribution networks for the purpose of distribution of financial products and services. Such a diverse and integrated network provides a centrali ed platform to there clients. BouEue# of finan&ial 6ro u&#s an servi&es

2ompany and its subsidiaries offer various financial services and products ranging from e&uity, . M 3 and wholesale debt, mutual fund, insurance and IP3 distribution, e&uity research analysis, depository services to cater to the specific needs of the retail and institutional investors thus providing all these services in a single platform. A van&e Te&hnolo!y #eam #ha# elivers mar1e# lea in!

6ro u&# innova#ion !here ongoing investment in technology is a key element in expanding there product and service offerings, enhancing there delivery systems, providing fast and consistent client service,

reducing processing costs, and facilitating there ability to handle significant increases in client activity without a corresponding rise in risk and staff. 2ompany and its subsidiaries have an in1house technology team of <D people comprising of several engineers. !he in1house technology team has been responsible for developing the technology products for operating at a large scale with efficient back office systems. !he application of technology allows 2ompany and its subsidiaries to build scaleable product and service offerings. !he in1house technology team developed one of the first Internet trading platforms in India, one of the first in1house real1time 2!2L link with 0S5. 2ompany and its subsidiaries introduced integrated accounts with automated gateways with client bank accounts so that they can transfer funds to and from their bank account to their brokerage account with the 2ompany. !his has enhanced customer ability to access their funds for market related activities. !he in1 house technology team has good expertise to create mission critical applications and in the maintenance and upkeep of high transaction processing of there web1site. S#ron! Sales an Mar1e#in! Teams wi#h &on#inuous

reinves#men# an

#rainin!

2ompany%s relationship manager channel )through a team of A=>= ,elationship "anagers as on $pril F=, <==E+ offers a single point contact to retail customers whereby their high net worth clients have separate relationship managers catering to them. !hese managers offer personali ed services to the customers helping build strong and continuing relationships with them. $lso, our marketing

associate channel helps 2ompany and its subsidiaries in client ac&uisitions at minimal costs with client loyalty. !he marketing associate%s channel also helps 2ompany and its subsidiaries in increasing their penetration in smaller town and cities. S#ron! &ross Sellin! O66or#uni#ies ;ith AF> branches spread over B> cities all over India and variety of financial products and offerings coupled with online, relationship manager M marketing associate channels, 2ompany and its

subsidiaries have strong cross product selling opportunities thus providing a multi1channel delivery systems to there diverse client base of DA,=== clients as on 4uly A=, <==>. S#ron! Team of E26erien&e "romo#ers

Indiabulls has a strong team of promoters who are engineers from Indian Institute of !echnology and have several years% experience in financial services industry. !hey believe that their strong technical experience will help them in achieving our key business strategies. Lea in! "ro u&# innova#ion an "anagement is innovative and mar1e#in! s#ra#e!ies nimble and has historically

introduced many new and innovative products to the market place that have played a significant role in their growth. 2ompany%s relationship manager model has introduced private banking

experience to the clients. !he relationship managers are trained and incentives to work with their client base and enhance ability to cross sell and leverage the large client base. Indiabulls have launched

marketing associate model, which replaces the traditional sub1 broker model with an authori ed person that client can appoint independently and provide them with the benefit of their trading, clearing and servicing strengths. Its e&uity analysis product provides clients with unbiased research. 2ompany plans to

continuously innovate and introduce market leading products and services to add to its competitive advantage. Well &a6i#ali:e an 6layer7 wi#h s#ron! %an1in! rela#ionshi6s

&re i# ra#in!s

Indiabulls consolidated net worth is ,s. A=<F.AB million making us a well capitali ed companies. !he 2ompany and ISL have received sanctioned facilities of ,s. ADG= million from B leading commercial banks and financial institutions. !he details of the banking

relationships as of 4uly <E, <==E are as followsN A%ili#y #o &om%ine "eo6le F Te&hnolo!y in uniEue ways !hey provide multiple distribution channels by combining people and technology. 2lients can visit one of the D= offices in >> cities or access via telephone, call centre or online channel. ;eb enabled tools such as technical analysis, information, news, interactive web based programs and tools and back office solutions for clients and marketing associatesO Power $n ia%ulls an order entry, routing and management technology through technology platform, for actively1 trading investors. S#ron! mar1e# 6resen&e an in&rease mar1e# share lea s #o

vir#uous &y&le of !row#h an

6rofi#a%ili#y

!hey%re growing client base and market share have increased their market presence, brand recognition enhanced their profitability and increased the available credit facilities from the banks further strengthening its strong balance sheet. 2ompany%s brand and profitability allows them to recruit good and efficient employees, compensate them attractively and provides the flexibility toes for investments in the business and technology systems. !hese attributes in turn have a positive effect on the growth of its client base thereby increasing its market share, leading to higher profits and credit facilities and thus forming a virtuous circle.

Key Business S#ra#e!ies

!heir focus on the client has allowed 2ompany and its subsidiaries to offer a range of services that have changed the investing landscape and created a new model of financial services that melds people and technology to provide an integrated human assisted technology interface service for investors who range from self1 directed full1time active investor to those who prefer to deal with through a marketing associate in smaller towns and cities. !heir key strategies includeN Defend and maintain their differentiation as the firm that delivers ethical and useful services (uild and expand ?investing insight@ through product offerings

such as 5&uity $nalysis which is ob#ective,

 :ncomplicated and not driven by commission /ive clients new levels of choice tailored to their desire for help, tools for investing their assets, their willingness to pay for additional services and the level of business they can do with the company. Provide clients with tools, relationship managers and choices that support their desired investment outcomes. Indiabulls has developed a client specific approach as a core element of its business strategy and are constantly focusing on ac&uiring new clients and expanding their customer base. !hey believe that the strong secular growth of the Indian financial "arkets, due to increased household penetration of financial assetsO increasing li&uidity and market capitali ation of Indian "arkets, led by the listing of many public sector entitiesO and the increasing affluence of Indian households and savers provides an impetus to the growth perspective. !hey believe that this diversification and growth strategy will continue to produce results and allow 2ompany and its subsidiaries to grow business at a rapid pace irrespective of market conditions. In addition, management believes that the growth of the Indian financial markets, due to increased household penetration of financial assetsO increasing li&uidity and market capitali ation of Indian markets, led by the listing of many public sector entitiesO and the increasing affluence of Indian households and savers, favors our long term growth outlook.

!he table below encapsulates the financial metrics on an annual basis, and compares that with the "arket trading volume. )0S5 6early !rading 'olume is taken as representative of "arket activity+. The &ore 6illars of our %usiness s#ra#e!y are %elowA $n&rease #he num%er of Clien# ,ela#ionshi6s !hey are focused on increasing the number of client relationships through a wide network of offices throughout India and having more number of relationship managers to service these relationships. !hey plan to grow their business by growing the number of client relationships. During a downturn of the markets they believe that increased number of client relationships will add stability to their earnings. Offer Diversifie 0inan&ial "ro u&#s F Servi&es ? Ca6#ure is&usse

Grea#er Share of Walle# 2ompany and its subsidiaries offer to their clients a wide range of financial services and products allowing the clients to leverage their relationship with Indiabulls and get products suiting their varied needs. !his strategy allows them to gain ?share of wallet@ of the clients% consumption of financial services. !hey offer to the client a comprehensive product offering and are able to increase their revenues per client by selling different products to the same client. Indiabulls offer e&uity, debt M derivatives brokerage, IP3

distribution, mutual funds and insurance products. !heir strategy is to increase the number of client relationships and then leverage those client relationships into offering in a whole suite of financial products. Mul#i6le Channels ? Enhan&e Cus#omer E26erien&e an O66or#uni#ies #o in#era&# wi#h us 2ompany%s clients can access their products and services through AF> offices spread across B> citiesO through operator assisted call 2entersO or through their website www.in ia%ulls.comO or through their respective relationship managers or through marketing

$ssociates. !hese multiple channels provide flexibility to the clients and allow them to utili e their existing business ,elationship with them through any channel from any part of India. 2ompany%s strategy is to provide the most convenient, efficient and value added channel to the client at the lowest possible cost, and allow the clients with choice and varied access points. Indiabulls believe that their multiple channel strategy has been particularly effective in the affluent segment where many sophisticated clients like to have a close1by office they can access and yet have the flexibility of Internet account management, transactions and electronic funds transfer and settlement. ,ela#ionshi6 Mana!er Euali#y servi&e an riven sales mo el7 6rovi e hi!h

e26loi# &ross5sell o66or#uni#ies

2ompany%s clients benefit from the personal attention and advice of the trained and motivated relationship managers. $ll its relationship

managers are &ualified and educated professionals, who have been extensively trained in1house to provide the products and services to the clients. !hese relationship managers are encouraged to develop long1term relationships with the clients and can access a variety of resources within the 2ompany, such as insurance specialists, research services and others to add value to their clients. "ost of the clients have dedicated relationship managers irrespective of the channel they use. Low &os# an Indiabulls hi!hly s&ala%le %usiness utili ed the technologies available and have

has

constantly invested in products and innovations to provide an enhanced experience to its customers. !he benefits of such infrastructure include integrated customer trading account with depositary servicesO electronic gateway for instant funds transfer to and from the bank to the brokerage accountO and comprehensive client systems that track all activity in various segments. !hey believe that technology and systems are one of the key competitive edges in terms of lowering their operating costsO managing the businessO reducing risk and providing an enhanced experience to the clients with superior service standards.

Bro1era!e Offerin! 2ompany%s retail e&uity business primarily covers secondary market e&uity broking. It caters to the needs of individual Indian and 0on1 resident Indian )0,I+ investors. !hey offer broker assisted trade execution and automated online investing and trading facilities to their customers. $utomated online investing and trading includes automated order placement and execution of market and limit e&uity ordersO and advanced trading platforms for active traders. $ll investors have full access to real 1 time &uotes, personali ed portfolio tracking, charting and &uote applications, real1time market commentary, real1time &uotes and news. Online Au#oma#e Channel

$utomated 3nline (usiness contributes more than FE.GK of its overall revenues. !hey control more than <=K market share in the online business. 2lients are able to obtain financial information and execute trades on an automated basis through their online channel using product offerings like Power $n ia%ulls and $n ia%ulls "arket !rader. !his channel is designed to provide added

convenience for clients and minimi e its costs of responding to and processing routine client transactions. 3nline channels include the $n ia%ulls /roup Professional 0etwork that provides access via their web1site www.in ia%ulls.com to information and trading service on the Internet. $dditionally, Power $n ia%ulls online trading system is designed for the high volume trader and provides enhanced trade information and order execution integrated

software1based trading platforms. ;hile most client transactions are completed through the online channel, they continue to stress the importance of blending the power of the Internet with personal service to create a full1service client interface. !hey offer an online portal where the clients can execute se&uri#ies purchase and sales transactions through the Internet. !his covers the 5&uity, Debt M Derivatives segment in the Indian se&uri#ies market. ;ith an ob#ective of assisting our customers in taking investment decisions, the portal also provides financial information on various companies listed. .or executing a transaction clients can directly log on to our website without re&uiring any assistance from offline intermediaries Thir "ar#y 0inan&ial "ro u&#s Offerin!

!hey distribute third party products and services through our comprehensive retail distribution network. !he products offered include third party insurance, mutual funds and initial and

secondary public offerings. !hey have a pan India retail distribution network, comprising A=>= relationship managers and AF> branches spread over B> cities.

$NT,OD*CT$ON AND CONCE"T O0 S/A,E T,AD$NG

!rading in shares is old phenomena its regulation had been started when securities contract act had been formed in AB>G. !ransfer of resources from those with idle resources to others who have a productive need for them is most efficiently achieved through the securities market. It provides a channel for reallocation of savings to investments. SEC*,$T$ES AND E)C/ANGE BOA,D O0 $ND$A 3SEB$4 is a regulatory governing body of security market. !he S5(I $ct ABB< was enacted to empower S5(I with statutory powers forN )a+ )b+ )c+ Protecting the interests of investors in securities. Promoting the development of the securities market ,egulating the securities market

Its regulatory #urisdiction extends over corporate in the issuance of capital and transfer of securities. It has powers to register and regulate all the market all market intermediaries and also to penali e them in case of violations of the provisions of the $2!, rules and regulations made there under. S5(I has a full autonomy and authority to regulate and develop an orderly securities market. !he share market can be segmented in two parts one is Primary "arket another is Secondary "arket.

"rimary Mar1e#
It provides opportunity to issuers of securities government as well as corporate to raise resources to meet their re&uirements of investments. In this market companies issue fresh security sin exchange of funds through public issues or private placements. !he market design for primary market is provided in the provision of 2ompanies $ct, AB>G which deals with issues, listing and allotment of securities. !he investors have to apply the shares by filling the application form issue by the company along with the application money. $ccording to Disclosure and Investor Protection guidelines of S5(I, ABB< company has to disclose all the necessary information regarding pricing of issues, listing re&uirements, disclosure norms lock1in1period for promoters contribution, contents of offer

documents pre and post issue obligations etc. 2ompany can issue shares at face value, at premium or at discount. $nother method of pricing which is now days common is issuing the securities through online system of the stock exchange has to comply with the section >> to GCa of the companies $ct, AB>G and S5(I guidelines <===. !he company is re&uired to enter in to an agreement with the stock exchanges which have the re&uisite system for online offer of securities. !he advantages for this new system areN1 )a+ )b+ !he investors part with money only after allotment. It eliminates refunds except in case of direct

applications. )c+ It reduces the time taken for issue process

Se&on ary Mar1e#

Secondary market is the place for sale and purchase of existing securities. It enables an investor to ad#ust his holdings of securities in response to changes in his assessment about risk and return. It enables him to sell securities for cash to meet his li&uidity needs. It essentially comprises of the stock exchanges which provide platform for trading of securities and a host of intermediaries who assist in trading of securities and clearing and settlement of trades. !he securities are traded, cleared and settled as per prescribed regulatory framework under the supervision of the exchanges and oversight of S5(I.

Tra in! Me&hanism

5arlier trading on stock exchanges in India used to take place through open outcry without use of information technology for immediate matching or recording of trades. !his was time

consuming and inefficient. !his imposed limits on trading volumes and efficiency. In order to provide efficiency, li&uidity and

transparency 0ational Stock 5xchange introduced a nation wide on line fully automated screen based trading system where a member can punch in to the computer &uantities of securities and the prices at which he likes to transact and the transaction is executed as soon as it finds a matching sale or buy order from a counter party.

Screen based trading electronically matches orders on a priceHtime priority and hence cuts down on time, cost and risk of error, as well as on fraud resulting in improved operational efficiency. It enables market participants, irrespective of their geographical locations to trade with one another and it provides e&ual access to everybody. 0S5 has main computer which is connected through 'ery Small $perture !erminal )'S$!+ installed at its office. !he main computer runs on a default tolerant S!,$!:S mainframe computer at the exchange. (rokers have terminals installed at their premises which are connected through 'S$!s. $n investor informs a broker to place an order on his behalf.

O,GAN$SAT$ONL C/A,T

C/A$,MAN F CEO

Sameer /ehlant 253

,a#eev ,attan President M 253

Surabh "ital 253

/agan (anga *ead online sales

3ivyesh Shah *ead online sales

!.S. "uglani 2hief !ech officer

Pheeta 0agpal *ead1 *,

$shok Sharma .inance 2ontroller

Suresh 4ain '.P

ACCO*NTS AND 0EAT*,ES !hrough various types of brokerage accounts, they offer purchase and sale of se&uri#ies, which includes 5&uity, Derivatives and 2ommodities listed on 0S5, (S5 and 02D58. $dditionally, they provide their clients access to a variety of insurance products like life, term and annuity products through third1party insurance companies like (irla Sunlife Insurance 2ompany. $n ia%ulls /roup Signature 2lient is designed to serve self1directed individual investors who want to manage their own portfolios. .or these clients, they offer this account, which is a stock trading account that allows clients to combine investments and cash in one1account and trade se&uri#ies. 2lients are also eligible to subscribe to $n ia%ulls 5&uity $nalysis, a fee based research offering. 3ther features of $n ia%ulls /roup Signature $ccount include priority handling of their service calls at the 2entrali ed 2ustomer Service 2entre and through dedicated relationship managers. $n ia%ulls /roup

Signature account features include online integrated net transfers via integrated payment gateways with banks such as *D.2 (ank. Power $n ia%ulls 1 .or active traders, !hey offer Power $n ia%ulls accounts that include access to special features and services such as advanced trading tool dedicated team of relationship managers. Indiabulls offers a full range of financial services and products ranging from 5&uities to Insurance to enhance your wealth and hence achieve your financial goals. $n ia%ulls "rofessional Ne#wor1TM offers real1time prices,

detailed data and news, intelligent analytics, and electronic trading capabilities, right at your finger1tips. !his powerful technology is complemented by our knowledgeable and customer focused

,elationship "anagers. IndiabullsL ,elationship "anagers are available to you to help with your financial planning and investment needs. !o provide the highest possible &uality of service, Indiabulls provides full access to all products and services through multi1channels.

EEui#ies an

Deriva#ives

3ur ,etail 5&uity (usiness caters to the needs of individual Indian and 0on1,esident Indian )0,I+ investors. Indiabulls offers broker assisted trade execution, automated online investing and access to all IP3Ls. !hrough various types of brokerage accounts, Indiabulls offers the purchase and sale of securities which includes 5&uity, Derivatives and 2ommodities Instruments listed on 0ational Stock 5xchange of India Ltd )0S5IL+, !he Stock 5xchange, "umbai )(S5+ and 02D58.

T/E 0AC$L$T$ES ",O+$DED B- $ND$AB*LLS

$n ia%ulls Si!na#ure A&&oun#

$ multitude of ways to access your account either through priority access to ,elationship "anager over phone or online access to your $ccount M ,esearch !ools. $n ia%ulls Si!na#ure A&&oun# 0ea#ures Priority Service G 5n#oy priority telephone access that gives you direct access to your ,elationship "anager' Premium ,esearch G (enefit from full access to Indiabulls 5&uity $nalysis!", our ob#ective, fact1based approach to rating stocks. 3nline $ccounting G Stay on the top of your investments with a snapshot of your $ccount Statements. /et access to Portfolio statement and access to digital contract notes. Benefi#s 2ontrol R Stay on top of your investments with convenient access to your account online or by phone. 2onfidence R Support your investing decisions with premium in1 depth research 1 Indiabulls 5&uity $nalysis.!" 'alue R 5n#oy competitive commissions and get the service and support you need at a fair price.

"ower $n ia%ulls
Indiabulls is dedicated to empower $ctive !raders through personal service and advanced trading technology. A&#ive Tra er 5 Ge# More A# $n ia%ulls ,egardless of how the market is performing or which way the economic winds are blowing, you, as a trader, are researching, charting, crafting a strategy, buying and selling. 6ou are getting in, getting out and moving on to the next trade. 2hoose from a comprehensive offering of accounts, platforms and products. 2ustomi e our technology and services to support the way you work. 0ea#ures of "ower $n ia%ullsTM Live Streaming Suotes .ast 3rder 5ntry !ic by !ic Live 2harts !echnical $nalysis Live 0ews and $lerts 5xtensive ,eports for ,eal1time $ccounting Benefi#s Com6rehensive 0inan&ial Servi&es R $s an $ctive trader, youLll

have the tools, resources and support you need to execute your trading strategy, plus your choice of a wide range of investment products and services. De i&a#e Su66or# an Servi&es R 5n#oy priority access to

,elationship "anagers who are dedicated to supporting your trading and investing needs. Non5,esi en# $n ian 3N,$4 $nves#or Servi&es ;ith an extensive range of investment products, you will discover an unwavering commitment to helping you invest in India. 0a&ili#ies $n ia%ulls N,$ Tra in! A&&oun# 5 Provides access to

comprehensive trading tools for independent 0,I investors $n ia%ulls De6osi#ory Servi&es 5 Integrated services for

seamless delivery /D0C Ban1 A&&oun# 5 0,5H0,3 $ccounts with built in tax management approvals. $n ia%ulls EEui#y AnalysisTM 5 Premium ,esearch on <== solutions and facility to source all regulatory

companies updated daily.

Benefi#s $n ian $nves#men#s Brin!s -ou More Choi&es Investing in India, one of the worldLs fastest emerging financial markets, means a wider choice of investment opportunities and industries. $t Indiabulls, you can take full advantage of the emerging Indian market. See wha# in ia%ulls offer Indiabulls provide you with a Seamlessly integrated trading, depository and bank account enabling you to trade from anywhere in the world. Investing in India, one of the worldLs fastest emerging financial markets, means a wider choice of investment opportunities and industries. $t Indiabulls, you can take full advantage of the emerging Indian market. Indiabulls provide you with a Seamlessly integrated trading, depository and bank account enabling you to trade from anywhere in the world.

De6osi#ory Servi&es
Indiabulls is a depository participant with the 0ational Securities Depository Limited and 2entral Depository Services )India+ Limited for trading and settlement of demateriali ed shares. Indiabulls performs clearing services for all securities transactions through its accounts. !hey offer depository services to create a seamless

transaction platform -execute trades through Indiabulls Securities and settle these transactions through the Indiabulls Depository Services. Indiabulls Depository Services is part of value added services for their clients that create multiple interfaces with the client and provide for a solution that takes care of all your needs. ISL is a depository participant with the 0SDL and 2DSL for trading and settlement of demateriali ed shares. It performs clearing services for all se&uri#ies transactions through its accounts. 2lients of the brokerage business are able to use the depositary services to execute their trade through ISL and settle these transactions through our depositary services. Indiabulls depositary service is part of the value1added offerings to create multiple interfaces with the client.

$NS*,ANCE O+E,+$EW

;hen you hear the word Insurance, the words boring and mundane probably enter your mind. $nsuran&e "ro u&#s II$PL is a 2orporate $gent of (irla Sunlife Insurance 2o., which is India%s second largest private insurance company. It offers life insurance and annuity products. !he insurance experts assist relationship managers in evaluating the near term and long term financial needs of clients and design programs that they believe would best suit their needs and help them manage their risks. Insurance experts also co1ordinate with underwriting partners to complete the insurance transaction. II$PL has a network of DD insurance experts spread across its branch network. II$PL has been awarded the ?.lying Start@ award by (irla Sunlife Insurance 2o. for outstanding contribution towards growth and success of the partnership. ;hen it comes to business, you are right up there. !aking all those split second decisions, avoiding pitfalls and making sure your

money works hard for you. (ut donLt you think the business of life re&uires #ust as much attention and probably even more. !hatLs we are proud to bring to you an offer exclusively for you. $s a part of our endeavor to provide you with world1class products and services, Indiabulls gives you the opportunity to avail of the whole range of (irla Sunlife Insurance Products through the Indiabulls network of A=>= ,elationship "anagers over AF> locations nationwide. ;hich means you can take care of life, while taking care of business. $s always, we put your needs first. "ro u&#sA $n ivi ual Life Live Long ,etirement Plan .lexi Save Plus 5ndowment Plan .lexi 2ash .low "oney (ack Plan .lexi Life Line Plan .lexi Secure Life ,etirement Plan Premium (ack !erm plan "y 2hild ,iders (irla Sun Life !erm Plan Single Premium (ond 2lassic Life

2ritical Illness Plus ,ider 2ritical Illness1;omen ,ider "ro u&#s A Grou6 Life /roup !erm Insurance /roup Superannuation Plan /roup /ratuity Plan .orms .$S N /roup Protection Solution Plan .$S N /roup Superannuation Plan .$S N /roup /ratuity Plan (ima 7avach 6o#ana

$n ia%ulls EEui#y Analysis

!hey seek to provide their clients with customi ed research reports called $n ia%ulls 5&uity $nalysis. It provides clients with an ob#ective stock rating system on more than <== stocks, assigning each e&uity a single gradeN $, (, 2, D, or 5. 3n average, $1rated stocks are expected to strongly outperform the overall market over the next A< months, while 51rated stocks are expected to strongly underperforms the market. $n ia%ulls 5&uity $nalysis leverages their strong technology strengths to a systematic ratings

methodology.

O%@e&#ive !ui an&e #o hel6 you %uy or sell (uilding and maintaining your ideal portfolio demands ob#ective, dependable information. Indiabulls 5&uity $nalysis!" helps satisfy that need by rating stocks based on carefully selected, fact1based measures. $nd because weLre not focused on investment banking, we donLt have the same conflicts of interest as traditional brokerage firms. !his ob#ectivity is only one important difference in our ratings. A s&ale of A7 B7 C7 D an E

$ to 5 ratings are applied to over 9H; Indian head&uartered stocks using a wide variety of investment criteria from four broad categories. ,a#in! is *n ers#an a%le an A&#iona%le

3ver the next A< months, $1rated stocks have a return outlook of strongly outperforming the market while 51rated stocks have a return outlook of strongly underperforming the market. .ind out more about using Indiabulls 5&uity $nalysis!" !he Indiabulls 5&uity $nalysis!" model attempts to gauge investor expectations, since stock prices tend to move in the same direction as changes in investor expectations.

Stocks

with

low

and

potentially

improving

investor

expectations tend to receive $ or ( ratings.

Stocks with high and potentially falling investor expectations

tend to receive D or 5 ratings. S6e&ial Consi era#ions Indiabulls 5&uity $nalysis!" also do not reflect the possible impact of late1breaking news since the ratings are updated daily. !hus, it is important to conduct additional research prior to making a trading decision IndiabullsL systematic approach is dependent on the accuracy of financial data provided by third parties. Indiabulls 5&uity $nalysis!" may not capture more sub#ective, &ualitative influences on return and risk, such as management changes and pending lawsuits. "arame#ers use %y $n ia%ulls #o !ive !ra es #o #he

in ivi ual s#o&1 Indiabulls 5&uity $nalysisTML four underlying components

).undamentals, 'aluation, "omentum and ,isk+ are provided to give you further insight into why a stock has a particular Indiabulls 5&uity ,ating. !he component grades should not be used alone in making investment decisions. $lways consider your investment goals, portfolio diversification and tax situation and check recent news before making an investment decision on an individual stock. 0un amen#als !he .undamentals is based grade upon underlying several the Indiabulls 5&uity

$nalysis!"

earnings1&uality

measures

derived from recent financial statement data. Stocks with strong fundamental attributes such as a track record of high net profit

margin and return on e&uity tend to have better .undamentals grades. +alua#ion !he 'aluation grade underlying the Indiabulls 5&uity $nalysis!" is based upon several value1oriented investment criteria. 2ompanies that are commanding a higher valuation in the market currently as compared to others having similar earnings and other parameters shall get a lower rating than others. !he aim of this component is to #udge the attractiveness of a particular stock. !ypically stocks with lower P5 ratio and other valuation related parameters would get higher valuation grades. Momen#um !he "omentum grade underlying the Indiabulls 5&uity $nalysis!" measures the potential of the stock to keep performing at a stronger than market level in the near future. India(ulls uses the opinions collected from a panel of analysts to get to a momentum rating for a company. ,is1 !he ,isk grade underlying the Indiabulls 5&uity $nalysis!" is based upon several diverse measures of investment risk. Larger stocks with good risk related attributes )such as low stock price volatility, low debt1e&uity ratio, high stock li&uidity etc.+ tend to have better risk grades.

Mu#ual 0un s
!hey provide various mutual funds )e&uity, debt and balanced mutual funds+ through our retail distribution network. !hey offer clients a wide variety of mutual funds from $sset "anagement 2ompanies like Prudential I2I2I "utual .und, *D.2 "utual .und etc.

$n ia%ulls Easy Money

No Eues#ions' Only Loans' 0o matter where you work, or how much you earn, we offer you the shortest route to a loan with minimum paperwork and procedures. ;ith EasymoneyTM, you can avail of easy loans for a minimum of ,s.A=, === to a maximum amount of ,s.A, ==,===. ;ith absolutely 0o Prepayment Penalty. Easymoney Team fea#ures .lexible loan tenor of up to E years )i.e. A month to EC months+. Loans available from a minimum of ,s.A=,=== up to a maximum of ,s.A==,===. 5asy monthly repayment through e&uated monthly installments )5"I+. "ediclaim Insurance bundled with every loan you avail. 5asy documentation and &uick disbursal.

6ou take today and you can pay it tomorrow with no penalties

$ND$AB*LLS5$N NEWS 8HH=

0arallon 6ays ,s DD&r for BBI s#a1e in $n ia%ulls arm T!he !imes 3f India ) 4an F, <==> + Merrill Lyn&h a&Euires 8I in $n ia%ulls India ) 4une <B, <==> + U Amaran#h #o 6i&1 u6 98'=I s#a1e in $n ia%ulls T5conomic !imes 1 India ) 4une =C, <==> + U *S 0un Amaran#h LLC A&Euires 98'= "er&en# S#a1e $n T(usiness ;ire 1San .rancisco, 2$, :S$ ) 4une T5conomic !imes 1

$n ia%ulls $"O ''' =D, <==> + U To

ler #a1es !ian# s#e6s T(usiness India ) .eb <C1"ar AF,

<==> + U $n ia%ulls raises J>Hm via GD, issue $n ia%ulls GD, 6ri&e ).eb <>, <==>+U $n ia%ulls 6ri&es J9=mn GD, issue <>, <==> + U $n ia%ulls raises J>H mln via GD, issue 5 BSE T,euters India ).eb <>, <==>+U $n ia%ulls 0inan&ial 6ri&es GD, issue a# *S J9= million T(usiness Standard ).eb T Sify ) .eb <>, <==> + U T"oneycontrol.com

a# ,s ;HC 6er share

T"yiris.com ).eb <>, <==>+U $n ia%ulls GD, 6ri&e <>, <==>+U $n ia%ullsL ne# !rows ;CBI in MB <==>+U $n ia%ulls for 0$$ s#a1e in Cre i# Servi&es )4an AF, <==>+U $n ia%ulls #hir 5Euar#er ne# @um6s7 in&ome rises #oo T"oneycontrol.com T5conomic !imes )4an AF, a# ,s ;HCKshare T5conomic !imes ).eb

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,ESEA,C/ MET/ODOLOG-

!he methodology section is the blue print for researcher activity and specifies bow the investigator intents to study the people or describe social settings. In other words the methodology section make explicit the study desire and constitutes the ?how to do it@ phase. !he pro#ect study has been conducted by collecting primary data only using structured &uestionnaire. 0o secondary data is used. I have put my best possible effort to do this research and collect the necessary information to learn about this topic thoroughly.

OB.ECT$+ES O0 T/E ,ESEA,C/

!o study investor%s behavior towards different attributes such as risk, return li&uidity etc. of investment in 5&uities. !o study the issues and challenges that investors face while making investment in share market. !o study the preferences and perceptions of investors regarding various financial products from the stable of Indiabulls Securities Ltd. so that the firm can benefit from the findings of the report in launching any new investment product in future.

DATA COLLECT$ON

!he data collected was a primary in nature no secondary data was used. Primary data was collected using structured &uestionnaire. !he &uestionnaire has been designed for the target group to get the best amount of data possible keeping in view the importance and authenticity of the information and convenience of the respondent. !he selection of investor was predetermined in nature Personal contacts were established to conduct a face1to1face interview. Interview was conducted under strict supervision to maintain the standards of the data collected.

,esear&h Desi!n
,esear&h $ ea ,esear&h Mues#ion ,esear&h S#a#emen# ,esear&h Me#ho olo!y Da#a Colle&#ion an Da#a Analysis 0in in!s an ,e&ommen a#ions Surveyin!

,esear&h

esi!n

,esearch design is a specification of methods and procedures for ac&uiring the information we need to solve the problems. ,esearch design was adopted for the purpose of collection and analysis of data in a manner aimed at getting relevant information. It was conceptual structure within which research was conducted,

collected, measured and analy ed.

,esear&h $ ea
!o know the market scene of trading and Investment in e&uities through Indiabulls securities Ltd.

,esear&h Mues#ion
;hat is the market trend regarding investmentV ;hat difficulties and challenges investors are facing while making investmentsV

,esear&h S#a#emen#
?!o get an insight into the mind of investors regarding trading and investment in 5&uities@ ?!o get an insight into the mindset of investors regarding the importance assigned to different attributes such as risk, return, li&uidity etc. of various investment channels such as e&uities. In the report this tries to understand the investor%s behavior while trading.@

?!o study the preferences and perceptions of investors regarding various financial products from the stable of Indiabulls Securities Ltd. so that the firm can benefit from the findings of the report in launching any new investment product in future.@

,ESEA,C/ MET/ODOLOGDefining the populationsN !he population taken for the research consists of investors of only Delhi region )both retail and

institutional+ Defining the SampleN $ random sample has been taken for the purpose of extensive market survey. $ structured &uestionnaire has been prepared and the results are analy ed for precise findings. Si e M !ype of SampleN $ random sample of si e A== is taken for surveying. "ethod to be usedN $ fre&uency count has been done for different parametersH &uestion and the most important factors have

suggested to the company for betterment of sales operations.

L$M$TAT$ONS O0 T/E ST*D-

!o study share market is a very vast topic and the search is #ust limited to a small portion. Due to the reluctant nature of the respondents it was not an easy task to collect relevant information from them. Sometime it was difficult to make the respondents understand the purpose of the survey. (usy schedule of the respondents was also a ma#or hindrance to establish a contact with them. It may be possible the information provided by them is not true.

S*,+E- M*EST$ONNA$,E

0ame $ddress Phone no

N N N

A. ;here do you prefer to invest your moneyV a+ (ank Deposits b+ Shares c+ "utual .unds estate e+ Insurance Plans <. ;hat are the factors, which attracts you for the investmentV a) High Return c+ Low ,isk F. Do you prefer to invest in sharesV a+ 6es b+ 0o E. If yes, out of following, which intermediating company would you go .orV b) Moderate Return d+ "oderate ,isk d+ ,eal

a+ 7otak Securities Securities c+ I2I2I .ortis Securities d+ 3thers, please specify

b+ Indiabulls

d+

>. If Indiabulls, ;hat are the factors, which attract you to deal with IndiabullsV

G. If 3thers, ;hat are the factors, which attract you, please specifyV

D. ;hat attracts you to invest in SharesV a+ (rokerage 5xpertise 7nowledge c+ 5xposuresHloan C. 3n what basis do you prefer to trade in sharesV a+ Daily c+ 6early specify B. Does the companies profile matter for the investment decisionsV b+ "onthly d+ other, please d+ (rand b+

a+ 6es 0o A=. Do you re&uire the opinion of portfolio managers to manage your investmentV a+ 6es 0o

b+

b+

AA. ;hat is the most important service parameter that you look for while trading. a+ Information c+ Suality b+ Speed d+ 3ther

A<. $ny recommendation H Suggestion

ANAL-S$S O0 T/E ",E0E,,ED $N+ESTMENT A,EA

!he investment was broadly divided into five areas, mainly1(ank deposits. Shares, "utual .und ,,eal 5state and insurance plans.

8; 87 =; =7 6; 67 <; <7 ; 7 Ban> Dep&2!t2 Sha e2 M$t$a" F$n/2 Rea" E2tate2 In2$ an.e p"an N&0 &# Re2p&n/ent2

.ollowing observations can be made on the basis of above analysisN (ank Deposits being the most preferred area, EFK respondents out of hundred invested in bank deposits. !he second preferred area was Shares as <DK respondents were investing in the share market. !hen preferred area was the "utual .unds with AFK of respondents ,eal estates were the least preferred area i.e. only DK

ANAL-S$S O0 T/E 0ACTO,S A00ECT$NG T/E $N+ESTMENT

!he factors are categori ed in to four parameters to know the purpose of investment made by the investor.

<; 8

;6 6?

H!:h et$ n2 M&/e ate Ret$ n L&' R!2> M&/e ate R!2>

><K respondents go invests for higher returns. <BK respondents prefer "oderate ,eturn for their

investments. A>K prefer moderate risk. 3nly EK for Low risk.

ANAL-S$S 0O, $NTE,MED$AT$NG COM"AN-

!hese factors are categori ed into brokerage, Information provided by them the exposure limit or loan facility provided by them and their (rand 0ame.

87 =; =7 6; 67 N&0 &# Re2p&n/ent2 <; <7 ; 7 @&ta> Se.0 In/!a1$""2 ICICI /! e.t F& t!2 2e. &the 2

<AK respondents choose 7otak Securities Ltd. FCK respondents choose Indiabulls Securities Ltd. for

trading. DK respondents choose I2I2I direct. EK respondents choose .ortis. F=K go for others.

ANAL-S$S O0 T/E 0ACTO,S 0O, B,OK$NG /O*SE

!hese factors are categori ed into brokerage, Information provided by them the exposure limit or loan facility provided by them and their (rand 0ame.

<4

<6 B &>e a:e EApe t!2e @n&' "e/:e EAp&2$ eBL&an

65

88

B an/ na% e

EEK respondents choose their broking house on basis of information provided by them. <CK prefer by the exposure limit and the loan facility provided to them. A<K by the brokerage charge by the broking house. AGK by (rand 0ame.

ANAL-S$S O0 T/E $N0L*ENCE O0 T/E "AST ",O0$LE O0 A COM"AN-

NO 86C

Ye2 ;5C

>CK respondents say yes they study profile of the company before making investment. E<K respondents say no.

ANAL-S$S O0 T/E ,EM*$,EMENT O0 E)"E,T$SE

NO DC

Ye2 ?=C

BFK respondents say yes, they re&uired expertise knowledge. DK respondents say no.

MOST $M"O,TANT SE,+$CE "A,AMETE,

Se +!.e Pa a%ete 2

=C 86C

67C Spee/ E$a"!t( In#& %at!&n Othe 2 =;C

!he most important service parameter that came up as a result of survey is Information i.e. the investors feel that the information contained in the service package is the key to more profits. Second ma#or parameter is Suality of service. <=K investors feel that the &uickness of service is above par than any other aspect.

,ECOMMENDAT$ONS

I0D:2!I30 P,3/,$"S must be held for the sales teams before letting them go into the field. In these induction classes the experienced sales staff employees should share their valuable live experiences and knowledge, which they have experienced while in field. ;eekly maga ines must be published and distributed to the investors that can help them for making better investments. Sales team must be fully e&uipped with latest technology such as using Laptop that can be used for making presentation to the customers especially to the corporate clients about their product and services provided by them. "ake your site user friendly so that more and more people know about trading and do the same also. $dvertisement through 2anopy, help to generate leads. 2ompany should advertise with a concern that has a brand name in the market.

B$BL$OG,A"/-

www.indiabulls.com www.nseindia.com www.bseindia.com www.moneycontrole.com 5conomics !imes 2.,. 7othari, "arketing ,esearch 02."

Date: 1st July 2006

TO WHOM IT MAY CONCERN

This is to !erti"y that #r$ M&ha%%a/ @a2h!# A#ta1F student o" #aster o" %usiness Ad&inistration Institute o" #anage&ent in 'tudies (ha)iabad has su!!ess"ully !o&*leted his training "ro& 1st #ay 2006 + 20th June 2006 with us and the *ro,e!t re*ort on STUDY OF OEM G REPLACEMENT TYRE SEGMENT FOR MARUTI SWIFT is a original study done by hi&
under our guidan!e$

JOSEPH ALEH
-#arketing #anager.