SUMMER TRAINING REPORT ON

PROCEDURE FOR TRADING IN LISTED SECUTRITIES IN STOCK EXCHANGE AND

COMPETETIVE POSITION OF ALANKIT ASSIGNMENT LTD , DELHI .






















DECLARATION
I Saurav Sood , a student of University Business School , Panjab University
Chandigarh of hereby declare that the project work, presented in this report
is my own and has been carried out under supervision of
This work has not been previously submitted to any other
university For any examination .


Date :-

Place:-
Signature: Saurav Sood











ACKNOWLEDGEMENT

I hereby take this opportunity to thank M/s ALANKIT ASSIGNMENT LTD ,
for providing me a corporate exposure through the course of my summer
internship.
I would like to express my sincere gratitude towards my company guide
for providing me great insights about mechanism of stock exchange, procedure for
listing of securities in stock exchange and other ventures , for guiding me all
throughout and for being a great support.
I would like to extend my gratitude to UBS Chandigarh, for providing me such a
platform.
Last but not the least all my friends and family for their support and co-operation.



Thanking You,
Saurav Sood






EXECUTIVE SUMMARY
The market in which shares of publicly held companies are issued and traded
either through exchanges or over-the-counter markets. Also known as the equity
market, the stock market is one of the most vital components of a free-market
economy, as it provides companies with access to capital in exchange for giving
investors a slice of ownership in the company. The stock market makes it possible
to grow small initial sums of money into large ones, and to become wealthy
without taking the risk of starting a business or making the sacrifices that often a
company a high-paying career.
Thus this project is focused to study and analyze procedure for dealing in
securities in stock exchange . Researcher has also study some of the demand
drivers and supply factors that provide ALANKIT ASSIGNMENT LTD a
competitive edge over other players in the market.










SL
NO.
CONTENTS PAGE
NO.
01 Declaration
02 Acknowledgement
03 Certificate
04 Executive summary
05 Review of Literature
a Objective of project
06 Company Overview
a Mission, Vision & Corporate Philosophy
b Product and Services


c Group Companies
d Milestones
07 Comparative analysis of Broking Services of Alankit
Assignment Limited With other Broking Firms

08 SWOT analysis
09 Competitive Advantage OF Alankit Assignments
Limited Brokerage Services


10 PESTEL analysis of Firm
11 Procedure for Trading Listed Securities in stock
exchange

a Introduction and Requirements For Listing of
Securities

b Compliances Under Listing Agreement
c Procedure For Trading of Securities in BSE
d Procedure For Trading of Securities in NSE
12 Conclusions
13 Bibliography

Review Of Literature

Al Ries and Jack Trout, in his work said differentiate or die, too many less
differentiated products creates a kind of information overload, and in this clutter
of too much information, products which are not properly differentiated or
advertised just end up becoming a me too product. To avoid it every marketer
needs to position his/ her products in a way that makes a specific image in the
minds of consumers.

Jack Miller, in his work published on June 03, 2010, talked about how investors
make investment decisions. He broke the process of decision making in pulling
the buy or sell trigger. According to him investors made the investment decisions
in the ways like simple screening, then lateral recommendation, followed by piggy
bank investing.

According to U.S. Securities and Exchange Commissions, one of the articles:
investors first evaluate their current financial roadmap, and then they evaluate
their comfort zone in taking on risk. Consider an appropriate mix of investments,
create and maintain an emergency fund, consider dollar averaging, consider
rebalancing portfolio occasionally, and in the process also try to avoid the
circumstances that can lead to fraud.




Objectives of the study:

Study was conducted to find out the services provided by
ALANKIT ASSIGNMENT LTD In relation to :
1. Listing of securities of companies with designated Stock Exchanges in
India
2. Trading of securities in Stock exchange having nationwide
Terminals viz. National and Bombay Stock exchange on
Behalf of its clients
3. Competitive position of Alankit Assignments ltd In financial market













COMPANY PROFILE
Alankit Assignments Ltd., the flagship company was incorporated in 1991 by
a talented visionary entrepreneur, Mr Alok K Agarwal. Under his able guidance
and management, the company has made unhindered steady progress since then.
The Company has its headquarter in Delhi with 25 Regional Offices in Mumbai,
Kolkata, Chennai, Ahmadabad, Bangalore, Hyderabad, Jaipur, Lucknow,
Chandigarh, Indore, Bareilly, Kochi, Amritsar, Ludhiana, Patna, Bhubaneswar,
Guwahati, Pune, Ranchi, Visakhapatnam, Raipur, Mysore & Nagpur. Alankit
Assignments Ltd. has expanded its footprint in global arena with its overseas
offices in London, Singapore and Dubai. With a consistent expansion of Alankits
business, the Company has evolved from largely Financial & Share Broking
Company into a diversified Business House.
. Vision:
"To be a unique service provider in the sectors we serve
Mission:
To become a customer centric organization with focus on building trust by our
unmatched standards
CORE VALUES
Customer Centric
With our committed workforce we develop relationship that makes a positive
difference in our customers lives
Trustworthy
We uphold clients trust, commitment & privacy for all our actions
Quality

We work together, and provide unsurpassed services to deliver premium value to
our customers
Stewardship
Think future oriented; act & invest to build a stronger firm for tomorrow.
Alankit Assignments ltd further commits itself to focus on the following as a part
of corporate social responsibility initiatives:
.
Quality in all its activities Ethical and Moral conduct at
all times and in all its
relationships


Practicing socially and
environmentally responsible
behavior
Providing productive, healthy
and safe work place for all its
employees



Growth And Strategy
Covering India through Aadhar
Geographical expansion of business
Expand product portfolio
Strengthen research capabilities




Product and Services
Financial Services
Equities
Derivatives
Currency derivatives
Arbitrage
Registrar Transfer Agent (RTA)
New pension scheme
Initial public offer
Depositary participant
Mutual funds
Insurance
Institutional equities
Wealth Management
Portfolio Management
Research services
Financial planning






E-Governance
.Tin Facilitation Centre
-PAN
-TAN
-AIR
-E-TDS
-PAN Authorization
.E-Return
.CRA-Facilitation Centre
.Unique Identification Authority
.National insurance Policy Repository (NIR)

Health Care
. Third Party Administration
. Rx Pharmacy







Group Companies

Alankit Assignments Limited
Alankit Imaginations Limited
Alankit Health Care TPA Limited
Alankit Insurance Brokers Limited
Alankit Technologies Limited
Alankit Life Care Limited
Alankit Finsec Limited













Milestone
1995 to 2000
Registrar & Share Transfer Agent (RTA)
Trading & Clearing Member - NSE, OTCEI, NSE- F&O
Depository Participant- NSDL & CDSL
2002
Member commodity Exchange
Third Party Administrator (TPA)
2003
Insurance Broker
2004
e-Governance TIN
2005
Member of: Dubai Gold & Commodity Exchange (DGCX)
Bombay Stock Exchange (BSE)
2007
Member of Indian Energy Exchange (IEX)
2008
Member of Currency Exchange
e-Governance- CRA
2009
Member of: Indian Commodity Exchange (ICEX)
Delhi Stock Exchange (DSE)




2010
Appointed as POP-SP for New Pension System
Aggregator- NPS LITE
Enrollment Agency for UIDAI
2011
Launch of recordxpert.com
(Health record portal)
2012
Online issue of General Insurance
Policies of National Insurance Co. Ltd.
2013
AP of NIR






Comparative Analysis of Broking Services of Alankit Assignment
Limited With other Broking Firms:

1. IIFL
The IIFL group, comprising the holding company, IIFL and its wholly-
owned subsidiaries, straddle 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
and other small savings instruments to loan products and investment banking. IIFL
has a network of over 2100 business locations (branches and sub-brokers) spread
across more than 450 cities and towns. the group caters to approximately a million
customers. At present, IIFL is operating into USA, SINGAPORE and DUBAI.



Product & service:


o Equity trading


o Commodity trading


o Insurance solution


o Asset management


o Online investment portal


o Loans










A/c opening charge 550Rs.


Annual Maintenance charges 300Rs.


Minimum Margin Required 10,000Rs.


Client wise exposure
up to 4 times in delivery

up to 10 times in intraday


Upfront Subscription Plan Yes


Brokerage
4 paise in delivery

.04 paise in intraday


DP selling charges Nil


Advisory services
Free to clients

80 Rs. p.a. sub-broker


Software installation charges Free


Name of software Vconnect, Rapideal, Rapitrade

Table 2.1: Table showing Services and charges of IIFL

.
Kotak Securities Limited
Kotak Securities Limited, a subsidiary of Kotak Mahindra Bank, is the stock
broking and distribution arm of the Kotak Mahindra Group. One of the oldest
broking houses in India, its operations include stock broking and distribution of
various financial products. It is a corporate member of both the Bombay Stock
Exchange and the National Stock Exchange of India. Kotak Securities was founded
in 1994 and is headquartered in Mumbai, India.
Kotak Mahindra is one of India's leading banking and financial services
organizations, offering a wide range of financial services that encompass every
sphere of life. From commercial banking, to stock broking, to mutual funds, to life
insurance, to investment banking, the group caters to the diverse financial needs of
individuals and corporate sector.
Products & Services
o Equity
o Derivatives
o Currency Futures
o IPO
o Mutual Funds
o ETF
o Fixed Deposits
o Loans
o Tax Services,
o New Pension Systems and Insurance.

Table 2.2: Table showing Services and charges of Kotak Securities



A/c opening charge 550Rs.


Annual Maintenance charges 300Rs.


Minimum Margin Required 10,000Rs.


Client wise exposure
up to 4 times in delivery

up to 10 times in intraday



Prepaid scheme available Yes


Brokerage
4 paise in delivery

.04 paise in intraday



DP selling charges Nil


Advisory services
Free to clients

80 Rs. p.a. sub-broker



Software installation charges Free


Name of software Vconnect, Rapideal, Rapitrade



3. Share Khan
Incorporated in February 2000, Sharekhan is India's 2
nd
largest stock
broker providing brokerage services through its online trading website
Sharekhan.com and 1950 Share shops which includes branches & Franchises in
more than 575 cities across India. Sharekhan has seen incredible growth over last
10+ years though it's very successful online trading platform and the chain of
franchises located in almost every part of India. Sharekhan has over 10 lakh
retail and institutional customers.
Sharekhan.com is the finest investment portal for India stock market. The well
designed website provides wide range on investment options, latest stock market
updates and many tools for investors. Sharekhan also offers 'Sharekhan Trade
Tiger', one of the most popular trading terminals, for retail investors.
Product & service:
o Equity trading
o Commodity trading
o Insurance solution
o Asset management
o Online investment portal
o Loans
o Wealth management spectrum







Table 2.3: Table showing Services and charges of Sharekhan




A/c opening charge 550Rs.



Annual Maintenance charges 300Rs.



Minimum Margin Required 10,000Rs.



Client wise exposure
up to 4 times in delivery

up to 10 times in intraday



Prepaid scheme available Yes



Brokerage
4 paise in delivery

.04 paise in intraday



DP selling charges Nil



Advisory services
Free to clients

80 Rs. p.a. sub-broker



Software installation charges Free



Name of software Vconnect, Rapideal, Rapitrade




SWOT analysis of Alankit Assignment Limited
Strengths
Diversified Services

Experienced Management

PAN India Presence

18 Years of Services

24 Services

8 Group Companies

25 Regional Offices
Online trading platform.
Diverse branches and networks provide a great opportunity to cater tapped and
untapped market as well.
Provides competitive brokerage and DP charges.
Equity analysis reports to support its clients.
Both online and offline trading facility.
Weakness
Position to answer the questions of the clients in their fields.
It does not provide indices on major world markets, ADR prices of Indian scripts.

Lacks banking arm
Lack of awareness among customers because of non-aggressive promotional
strategies (Print media, newspapers etc.)
OPPORTUNITIES:
Can easily tap the retail investor s with small saving through promotional
channels like print media, electronic media, etc.
More & more small investors are entering into share market
Focuses more on HNIs than retail investors which results in meager market-
share as compared to close competitors.
ATM facility should be provided for easy withdrawals.
Tie-ups with third party companies for selling products.
High client base will help for cross sales of its products


Threats
Companies like Sharekhan, ICICI Direct, Kotak Securities, and private brokers are
major threats.
Banks with demat facilities are jockeying for position.
Local brokers capable of charging lower brokerage.
Changes in SEBI guidelines and other tax implications.
Government regulations

Competitive Advantage Of Alankit Assignments Limited Brokerage
Services
One of the lowest brokerage charge in the industry (currently).
Best software in the industry.
Listed company and aggressive in brand promotion.
Mobile trading tie ups with Blackberry and other phones, where one can trade with
ease.
Both online and offline facilities are provided.
Competitive commissions and service support at fair price (value for money).
Relationship manager facility to assist customers as and when they need assistance
and guidance.
Easy access to customers of the snap shots of their account statement
and portfolio statements and to digital contract notes.



PESTEL analysis of firm
Political and Legal
Heavy regulations and tough regulations by SEBI to avoid major scams like
Harshad Mehta and ketan Parekh.
Settlement period and Settlement Cycle
Know Your Customer Norms
Economic Environment
Limited FDI and Foreign Institutional Investor Inflows
Rigid RBI Guidelines and Foreign Exchange Management Provisions
Limited Trade and heavy regulations in currency trade
Social Environment
Apprehensiveness of investments in stocks and shares
Less Expertise and more dependence on speculation
Festivals

Technological and Environmental
Techonological Advances , The stock exchanges , improved trading, hardware
and software and software enabling nearly 15 Millions trades per day.
Satellite communication techonologies
Online and Mobile Trading facilities

Procedure for Trading Securities in stock exchange(National and Bombay stock
exchange)
As we know stock exchange provides a platform for sale and purchase of existing
securities of companies.
Only such securities can be traded on floor of stock exchange which are listed
with stock exchange. In order to ensure that securities of a public limited
company are listed in a stock exchange a company has to appoint a compliance
officer which will ensure that all clauses of listing agreement framed by stock
exchange are duly compiled.
Listing means permission from stock exchange for trading securities on trading
floor of stock exchange.
Following are main clauses of listing agreement and compliances
BOOK CLOSURE FOR DECLARATION OF DIVIDEND ETC.- Clause 16
Event
To close the transfer books for declaration of dividend at the time of the AGM.
Books will also be closed for issue of right/bonus shares or issue of shares for
conversion of debentures etc. in the same manner by giving notices.
The minimum time gap between the two closures and / or record dates would be
at least 30 days.
Time Limit
Advance Notice of at least 7 days. The exchange must be given the dates and
purpose of closing the transfer of books.
The company on whose stocks, derivatives are available or whose stocks form
part of an index on which derivatives are available, shall give a notice

period of 7 days to stock exchanges for corporate actions like merger, de-
mergers, splits and bonus shares.
Clause 19(a), (b) & (d)
Prior intimation to stock exchange for calling Board Meeting for some
specified Business
If the company is planning for
Proposal for buy back
Declaration of dividend
Right issue
Bonus Issue (in this case simultaneous notice to stock exchange has to be given on
the date when the proposal is communicated to Board of Directors as a part of
agenda papers.)
Issue of convertible debentures.
Passing over of dividend.
Then prior intimation to the Exchange is required before the Board considers the
same.
Time Limit
At least 2 working days in advance of the date of the Board Meeting
ISSUE OF SHARES OR SECURITIES Clause 24
The company making a new issue has to agree
To obtain in principal approval for listing of the new securities
To make true, fair and adequate disclosure in the offer documents

To get the offer documents vetted by SEBI
To submit to the exchange:
Copy of the acknowledgment card so vetted by SEBI and
Compliance certificate from merchant banker reporting positive compliance of
guidelines on disclosure and investor protection.
Company to submit any scheme/petition under sections 391, 394 and 101
proposed to be submitted to the court or tribunal at least one month in
advance for getting it approved from the stock exchange and shall also:
Submit an auditors certificate to the effect that the accounting treatment
contained in such scheme is in compliance with all the applicable Accounting
standards (requirement introduced w.e.f. 5
th
April, 2010.)
Assure to the stock exchange that the said scheme of
arrangement/amalgamation/merger etc does not in any way violate, override or
circumscribe the provisions of the securities laws or stock exchange
requirements.
Disclose the pre and post arrangement capital structure, shareholding pattern
and the fairness opinion obtained from independent merchant bankers on
valuation of assets / shares in the explanatory statement forwarded to the
shareholders u/s 393 or accompanying the resolution to be passed under section
100
Clause 23 (e).
Event
Time to be given to right issue shareholders to decide
Time Limit
Not less than 4 weeks, within which they will have to exercise their rights.

Clause 23 (e)
Event
Time limit to issue letters of allotment or letters of rights
Time Limit
Within 6 weeks of the Record date / reopening of transfer books /
submission of letters of renunciation / applicable of new securities.
FORWARDING OF ANNUAL ACCOUNTS TO THE EXCHANGE, FILING OF
SHAREHILDING PATTERN clause 31
The company will forward to the Exchange promptly and without application: -
6 copies of the Annual report / periodical report / special report as soon as they
are issued to the shareholders to all the recognized stock exchanges:
6 copies of all notices, resolutions and circulars relating to new issue of capital
prior to their dispatch to the shareholders:
3 Copies of all the notices, call letters or any other circulars including notices of
the meeting convened under section 391 or 394 at the same time as they are sent
to the shareholders or debenture holders or advertised in the Press:
Copy of the proceedings at all AGM / EGM of the company;
3 copies of all notices, circulars, etc, issued or advertised in the press regarding
any proposal to merge or amalgamate, re-construction, reduction of capital,
scheme or arrangement etc. and copies of the proceedings at all such meetings.
Time limit
Should be send when mailed to shareholders.
Should be send prior to dispatch to shareholders.
Should be send when sent to shareholders.

Should be send after the Chairman of the meetings has signed the minutes.
Promptly.
ANNUAL REPORT- clause 32
Company to supply a copy of the complete B/S, P/L Account and the Directors
Report to each Shareholder.
Company may supply a single copy to all the shareholders having same unless
requested. However the company will supply abridged Balance sheet to all the
shareholders in the same household.
Company has to give cash flow statement prepared as per AS-3 along with
Consolidated Financial Statement (CFS) duly audited by the Statutory Auditors.
Filling of such CFS is mandatory.
It shall also disclose:
Related party transactions
Fact of delisting, together with reasons thereof in its Directors Report
In case the securities are suspended from trading, the reasons thereof
The name and address of each stock exchange at which the issuers securities are
listed and also a confirmation that the Annual Listings Fees has been paid to each
of the exchange.
If company changes its name suggesting new line of business after 1
st
January,
1998 then company will have to disclose the turnover and income, etc. from such
new activities separately in the annual results for a period of 3 years from the
date of change in the name of the company.
SHARHOLDING PATTERN clause 35



Shareholding pattern to be filled on a quarterly basis in the form that has been
prescribed in the agreement itself.
The reporting format of shareholding pattern as provided in clause 35 of the
Listing Agreement shall be indicated in 3 categories, viz., shares held by
promoters and promoter group, shares held by public and shares held by
custodians and against which Depository Receipts have been issued. Additional
details with respect to no. of shareholders no. of shares held in demat form etc.
will be given for all the 3 categories. Disclosure of shareholding of persons holding
more than 1% of the total number of shares and Depository Receipts will also be
required to be furnished.
The format of disclosure of shareholding pattern also includes details of shares
pledged by promoters and promoter group. Such pattern shall be disclosed for
each class of security separately and an additional format for disclosure of voting
rights pattern in the company has been prescribed.
Time limit
Within 21 days of end of the quarter
Clause 40 A
The company agrees to comply with the requirements specified in Rule 19(2) and
Rule 19A of the Securities Contracts (Regulation) Rules, 1957.
Where the company is required to achieve the minimum level of public
shareholding specified in Rule 19(2)(b) and/or Rule 19A of the Securities
Contracts (Regulation) Rules, 1957, it shall adopt any of the following
methods to raise the public shareholding to the required level:-
(a) issuance of shares to public through prospectus; or
(b) offer for sale of shares held by promoters to public through prospectus; or
(c) sale of shares held by promoters through the secondary market.

Clause 41
Quarterly financial results approved by the Board/ or by a committee thereof,
other than the audit committee Along with Limited review report within 45 days
from end of the quarter (other than the last quarter).
In respect of the last quarter, the company has an option either to submit
unaudited financial results for the quarter within forty-five days of end of the
financial year or to submit audited financial results for the entire financial year
within sixty days of end of the financial year, subject to the provision.
Atleast 7 clear calendar days in advance of the Board meeting fixed for taking Un
audited / Audited results on record. (excluding date of intimation and date of
meeting)
Advertise atleast 7 days in advance in atleast one national newspaper in English
and in regional language, the day of Board meeting.
Fax the results to the stock exchange with in 15 minutes.
Recently amended to include the details of pledge shares of the Promoters and
Promoter group.
Clause 49
Clause 49 of listing agreement deals with corporate governance
The Board must have an optimum combination of executive director and non
executive director.
In case of executive chairman then board shall comprise of independent
directors which will be equal to 2/3 of total strength of board



Where in case board have a non executive chairman, then the board must
consist of 50% of independent directors.
Definition of independent director
independent director shall mean non-executive director of the company who
a. apart from receiving directors remuneration, does not have any material
pecuniary relationships or transactions with the company, its promoters, its
senior management or its holding company, its subsidiaries and associated
companies;
b. is not related to promoters or management at the board level or at one level
below the board;
c. has not been an executive of the company in the immediately preceding three
financial years;
d. is not a partner or an executive of the statutory audit firm or the internal
audit firm that is associated with the company, and has not been a partner or an
executive of any such firm for the last three years. This will also apply to legal
firm(s) and consulting firm(s) that have a material association with the entity.
e. is not a supplier, service provider or customer of the company. This should
include lessor-lessee type relationships also; and
f. is not a substantial shareholder of the company, i.e. owning two percent or
more of the block of voting shares.
Remuneration committee
All remuneration paid to non-executive directors, including independent
directors, shall be fixed by the Board of Directors and shall be agreed to by
shareholders in general meeting. Limits shall be set for the maximum number of
stock options that can be granted to non-executive directors, including
independent directors, in any financial year and in aggregate.

Meeting of Audit Committee
The audit committee should meet at least four times in a year and not more than
four months shall elapse between two meetings. The quorum shall be either two
members or one third of the members of the audit committee whichever is
greater, but there should be a minimum of two independent members present.
Role of the audit committee
The role of the audit committee shall include the following:
Oversight of the companys financial reporting process and the disclosure of its
financial information to ensure that the financial statement is correct, sufficient
and credible.
Recommending the appointment and removal of external auditor, fixation of
audit fee and also approval for payment for any other services.
Reviewing with management the annual financial statements before submission
to the board, focusing primarily on;
Any changes in accounting policies and practices.
Major accounting entries based on exercise of judgment by management.
Qualifications in draft audit report.
Significant adjustments arising out of audit.
The going concern assumption.
Compliance with stock exchange and legal requirements concerning financial
statements
Any related party transactions
Reviewing with the management, external and internal auditors, the adequacy of
internal control systems.

Reviewing the adequacy of internal audit function, including the structure of the
internal audit department, staffing and seniority of the official heading the
department, reporting structure coverage and frequency of internal audit.
Discussion with internal auditors any significant findings and follow up there on.
Reviewing the findings of any internal investigations by the internal auditors into
matters where there is suspected fraud or irregularity or a failure of internal
control systems of a material nature and reporting the matter to the board.
Discussion with external auditors before the audit commences about nature and
scope of audit as well as post-audit discussion to ascertain any area of concern.
Reviewing the companys financial and risk management policies.
To look into the reasons for substantial defaults in the payment to the
depositors, debenture holders, shareholders (in case of non payment of declared
dividends) and creditors.
Whistle Blower Policy
The intention of this clause is that management establishes a mechanism for
employees to report concerns about unethical behavior, actual or suspected fraud
or violation of the companys code of conduct or ethics policy. The exact details of
such a mechanism should be left to each company, through its Board of Directors,
to decide but the existence and implementation must be reviewed by the audit
committee. The mechanism must have adequate provisions to ensure there is no
victimization of employees who avail of this procedure..





TRADING MECHANISM IN BOMBAY STOCK EXCHANGE
Established in 1875, BSE Ltd , Earlier it was known as The Native Share and Stock
Brokers' Association").
BSE provides an efficient and transparent market for trading in equity, debt
instruments, derivatives, and mutual funds.
It also has a platform for trading in equities of small-and-medium enterprises
(SME).
Its main index Is SENSEX.
It is the one of the stock exchange who has firstly introduced Bombay Online
Trading System (BOLT) in india .
The scrips traded in Bse have been classified into various groups.
Bse has for guidance and benefit of the investor ,classified the scrips in the
equity segment into A , B , T , AND Z groups on Certain
qualitative and quantitative parameters .
The F group represents Fixed Income Securities.
The T represents Government Securities which are settled on trade to trade to
basis as a surveillance measure
Trading in government securities by the retail investor is done under the G
GROUP
The Z group was introduced by BSE in july 1991 and includes companies
which have failed to comply with listing agreement and failed to redress
investor grievances and /or have not made the required arrangements with
depository participants both CDSL and NSDL for dematerialization of shares.


BSE also provides a facility to the market participants for online trading of odd
lot securities in physical form in A ,B, T , AND Z groups and in rights
renunciations in all groups of scrips in equity segment
The, Mumbai Exchange has initiated a number of measures aimed at providing
quality products and services and expanding its network using cutting edge
information technology. The BSE made its transition from an 'outcry' system of
trading to a completely electronic trading system.BSE has introduced electronic
trading system known as BOLT ( Bombay Online Trading System)
Trading system displays on a continuous basis scrip and market-related
information required supporting traders. (Information includes best five bids and
offers, last traded quantity and price, total buy and sell depth (irrespective of
rates), open, high, low and close price, total number of trades, volume and value,
and index movement. Other company-related information is also displayed)2.
As soon as an order is matched, the confirmation of the trade is generated on-
line.
The order matching logic is based on best price and time priority.
The BSE On line Trading Platform has a capacity of conducting 2 million trades
per day
The latest state of the art technology infrastructure with Trader Work Stations
located in more than 400 cities all over the country.
Trading on the BOLT system is conducted from Monday to Friday between 9: 30
a.m. and 3:30p.m.
Trading can also be conducted through the BSE Internet Trading System -
www.bsewebx.comthe first Exchange enabled Internet Trading System.8.



BSE aims to provide trading any where and at anytime. With this endeavor in
mind, the exchange continuously upgrades the hardware, software and
networking systems so as to enable it to enhance the quality and standards of
service to its members and other market intermediaries

PRICE DISCOVERY MECHANISMS

During the pre-opening period (9.15a.m.-9.30a.m.), brokers input the bids and
offers they receive from investors into the system until they match.
The mechanism for which the price of equities is determined is as follows:
The best price (price priority): The transaction is executed for the best price.
Type of order: If an order is conditional, precedence of execution is given to
orders that are un-conditional. For example, if there are two orders with the same
price, the system will give precedence to the un-conditional order.3.
Source of order: The sources of order are given precedence of execution as
follows:
Priority 1 =>
clients order, foreign investors order, market controls order
Priority 2 =>
mutual funds order, the issuing companys order, specialists order
Priority 3 =>
insiders order
Time of order priority: In case the price and type are the same, precedence is
given to the orders entered into the system first.5.


Cross priority: Cross priority is implemented if the one with the priority is on
the active side .Trading in cross priority takes precedence over other house, then
against the same house order.
Random factor priority: In case two orders are received in the same time,
precedence is given to the random factor.
CLEARING AND SETTLEMENT
The settlement of transactions was earlier done in the weekly settlement
environment, where the exchange had a carry forward facility. The exchange
commenced exchange of trades on rolling basis where the trades are settled on
T+ 2 basis. Undelivered quantities of securities in settlement is promptly
auctioned or closed out as per the well-laid procedure. Two depositories, namely
the Central Depository Services (India) Ltd. and National Securities Depository of
India Ltd. operate in the Indian Market place. The Clearing House of the exchange
has well- structured linkages with both the depositories. Direct transfer of
securities to and from the Beneficial Owner Accounts is facilitated at the
Clearinghouse level only, making for the seamless movement of securities in the
settlement system .The settlement of transactions in the depositories mode is
based on the ISIN codes of the securities. The exchange Rules, Bylaws and
regulations have clearly laid down the default handling procedure.
National Stock Exchange
National Stock Exchange (NSE) was established in the mid 1990s as a
demutualised electronic exchange. NSE provides a modern, fully automated
screen-based trading system, with over two lakh trading terminals . across the
country.
The exchange was incorporated in 1992 as a tax-paying company and was
recognized as a stock exchange in 1993 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.
The Objectives of the NSE are:
To establish a nation wide trading facility for equities, debt instruments and
Hybrids .
To ensure equal access to investors all over the country through an appropriate
Communication network.
To provide a fair, efficient and transparent securities market to investors using
Electronic trading systems.
To enable shorter settlement cycles and book entry settlement system.
To meet the current international standards of securities markets.
The trading system of the NSE, known as NEAT (National Exchange for
Automated Trading), is a fully automated screen based trading system that
enables members across the Country to trade simultaneously with enormous
ease and efficiency. In one stroke it has done away with the need for people to
congregate on the floor of an exchange to trade and done away with the need for
people to congregate on the floor of an exchange to trade and has instead taken
the exchange floor to the investors doorstep.
The telecommunications network is the backbone of any automated trading
system and the same is true for NSE also . Each Trading Member trades on the
NSE with other members through a computer that may be located at the Trading
Members office or anywhere in India.
The Trading Members of the exchange trade through VSATs (Very Small Aperture
Terminals)..

The Exchange provides a facility for screen based trading with automated order
matching
The trading system operates on a price time priority. Orders are matched
automatically by the computers keeping the system transparent, objective and
fair. Where an order does not find a match, it remains in the system and is
displayed to the whole market till a fresh order comes in or the earlier order is
cancelled or modified
The trading system also provides complete on-line market information through
various inquiry facilities. The various screens on the Trading System provide
comprehensive information like the total order depth in a security, the best buys
and sells available in the market, the quantity traded in that security, the high
price, the low price and the last traded price etc
It is thus possible for investors to know the actual position of the market before
placing orders. Investors can also know the fate of the orders almost as soon as
they are placed by the Trading Members on the NEAT system.
EXCHANGE OPERATIONS
The Exchange currently operates three market segments, namely Capital Market
Segment, Futures and Options Segment and the Wholesale Debt Market
Segment.
The Exchange currently operates three market segments, namely Capital Market
Segment,
Futures and Options Segment and the Wholesale Debt Market Segment.
CAPITAL MARKET SEGMENT
The Capital Market segment provides trading facilities in equities, convertible
debentures etc. This segment commenced trading on November 3, 1994.

The clearing and settlement operations in CM segment of the Exchange are
managed by its wholly owned subsidiary, namely the National Securities
Clearing Corporation Limited (NSCCL)

The NSCCL operates a settlement fund with a corpus of over Rs.1,200 crores.
This settlement fund works like a self insurance mechanism
The members contribute to the settlement fund and in the unlikely event of
member default or their failure to meet settlement obligations , the fund is used
to complete the settlement. This virtually eliminates the counterparty default on
NSE.
To further reduce the systemic risk, NSE has arranged a comprehensive insurance
scheme covering the major Systemic risks of all Trading members in the Capital
Market Segment.
FUTURES & OPTIONS (F & O) SEGMENT
NSE has introduced firstly trading in derivatives in India.
This segment facilitates trades in derivative products such as stock index based
futures, stock index based options, stock options, stock futures, and interest rate
derivative products. Trading facilities in Futures & Options Segment of the
Exchange are available at all centers where Capital Market operations have
been extended. All clearing and Settlement functions for the F&O market
segment are handled by NSCCL.
Securities Available in WDM Segment:
All Government securities and Treasury bills are automatically deemed to be
listed as and when they are issued. Other securities, either publicly issued or
privately placed could be listed if eligible as per exchange rules.
Procedure and Conditions for listing of securities on WDM segment:

1. All Listing are subject to compliance with Byelaws, Rules and other
requirements framed by the Exchange from time to time in addition to the SEBI
and other statutory requirements.
2. The Issuer of security proposed for listing has to forward an application in the
format prescribed in Annexure I of this booklet

along with application, such supporting documents/information as specified in
Annexure I of this booklet and as prescribed by the Exchange from time to time.
4. On getting an in-principle approval t of the exchange the issuer has to enter
into a listing agreement in the prescribed format under its common seal.
5. Upon listing, the Issuer has to comply with all requirements of law, any
guidelines/directions of Central Government, other Statutory or local authority
6. The Issuer shall also comply with the post listing compliance as laid out in the
listing agreement and shall also comply with the rules, bye-laws, regulations
and any other guidelines of the Exchange as amended from time to time.

7. Listing on WDM segment does not imply a listing on CM segment also or vice
versa.
8. . If the equity shares of an issuer are listed on other stock exchanges but not
listed on Capital Market segment of the Exchange, though eligible, then the
debt securities of the said issuer will not be permitted to be listed on the
WDM segment.
Clearing and Settlement
Trades on the Wholesale Debt Market are settled gross on a trade for trade basis
i.e. each transaction is settled individually and cumulating or netting of
transactions is not allowed.
Each trade has a unique settlement date specified upfront at the time of order
entry and used as a matching parameter. It is mandatory for trades to be settled
on the predefined settlement date . The Exchange currently allows settlement
periods ranging from same day (T+0) settlement to a maximum of three (T+2)
days. Exchange also permits Repurchase (REPO) trades for a repo term upto 14
days for eligible securities and participants.
The Clearing Corporation of India Limited (CCIL), promoted by the banks and
financial institutions, was incorporated in April 2001 to support and facilitate
clearing and institutions, was incorporated in April 2001 to support and facilitate
clearing and settlement of trades in government securities (and also trades in
forex and money markets).
It facilitates settlement of transactions in government securities (both outright
and repo) on gross basis and settlement of funds on net basis simultaneousl
It acts as a central counterparty for clearing and settlement of government
securities transactions done on NDS.
It provides guaranteed settlement for transactions in government securities
including repos through improved risk management practices viz, daily mark to
market margin and Dealer/Mutual Fund or a Statutory Corporation or body
corporate which is a member of NDS and which has opened an SGL Account and
a Current Account with RBI can apply
NDS and which has opened an SGL Account and a Current Account with RBI can
apply for CCIL's membership for the Securities segment.In case of securities other
than government securities, there is a bilateral settlement between the parties
to the trade. Settlements of transactions are closely monitored by the Exchange
through obtaining settlement details by trading members and participants. In
case of deferment of settlement or cancellation of trade, trading members and
participants are required to seek prior or cancellation of trade, trading members
and participants are required to seek prior approval from the Exchange .


Conclusions And Findings
After working into a Alankit Assignment Ltd , Trainee has got a clear
understanding of procedure for trading of securities in stock exchange and major
compliance made by above said firm on behalf of its clients under Listing
agreement .
After analyzing the books of firm ,the trainee has find out the competitive
advantage available to firm against its competitors in the Market .
















Bibliography
WWW.Alankit.com
www.BSE.com
WWW.NSE.com
ISCI JOURNALS
ICSI Study Materials- Securities law and Compliances
WWW.kotak .com
WWW.Share khan.com
Alankit Assignment Ltd Prospectus