1.

1 INTRODUCTION

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

(BSE) introduced financial derivatives in the year 2000. Derivatives allow
managing risks more effectively by reducing the burden of risk and allowing
either hedging or taking only one risk at a time. It is indeed rewarding but
involves a great deal of risk. Investing in financial securities is considered to be
one of the best avenues for investing one’s savings while it is acknowledged to
be one of the most risky for investment. Investment is the employment of funds
with the aim of earning additional income or capital appreciation. It has two
attributes i.e., time and risk. The sacrifice that has to be made by the investor is
certain but return in the future is uncertain. Every investor is exposed to risk of
market price of fluctuations. Derivatives were evolved to curtail the risk of market
price fluctuations in the commodity market. Derivatives have been in use way
back in 13th century onwards and later it was developed for the securities market.

Risk is a characteristic future of all commodity and capital market. Prices

of all commodities like wheat, cotton, rice, coffee, tea, silver, gold etc are subject
to fluctuations in demand and supply over time. Producers of commodities
cannot be sure of the price that they produce may fetch when they are ready for
sale. Similarly prices of shares and debentures or bond etc are subject to
fluctuations. In the same way the foreign exchange are also subject to
fluctuations. In the current economic scenario, investments in financial markets
have become more complicated. Investing in securities such as shares,
debentures, bond etc are profitable as well as interesting and attracts people
from all walks of life irrespective of their occupation, economic status, education
or family background. Risk reduction is one of the main issues for an investor as
it is directly related to the return on the investments. Some of the risk
management techniques used in the capital market now a day is:
 • Risk avoidance
• Combination
• Diversification
• Risk transfer
• Portfolio investment
• Hedging

The project entries “A STUDY ON HEDGING EFFECTIVENESS IN

INDEX FUTURE” deals with the construction of a profitable portfolio on the basis
of risk-return evaluation and loss minimization using hedging. The companies
are selected on the basis of their industrial performance. Investing in individual
securities involves lot of risks. It is better to invest in-group of securities to reduce
risk. Selecting the group of securities is an important task. Investors are
interested in maximizing the return with minimum risk, here ten securities have
been selected for constructing the portfolio these securities are representatives
of different sector. The securities selected are SBI BANK, HDFC BANK, WIPRO,
INFOSYS, MAHINDRA, MARUTI SUZUKI, HUL, ITC, CIPLA and RANBAXY.
There exist a considerable degree of different in return and risk of various
portfolios.

PORTFOLIO MANAGEMENT
Investing in securities such as shares, debentures and bonds is profitable
as well as existing. It is indeed rewarding, but involves a great deal of risk and
calls for scientific as well as artistic skill. In such investment both rational as well
as emotional responses are involved. Investing in financial securities is now
considered to be one of the most risky avenues of investments.
It is rare to investors investing their savings in a single security. Instead
they tend to invest in a group of securities. Such as group of securities is called
as Portfolio. Creation of a portfolio helps to reduce risk without sacrificing
returns.
 Portfolio management deals with the analysis of individual securities as
well as with the theory and practice of optimally combining securities into
portfolios. An investor who understands the fundamental principles and analytical
aspects of portfolio management has a better chance of success.
An investor considering investments in securities is faced with the
problem of choosing from among a large number of securities. His choice
depends upon the risk returns characteristics of individual securities. He would
attempt to choose the most desirable securities and like to allocate his funds
over this group of securities. Again he is faced with the problem of deciding
which securities to hold and how much to invest in each. The investor faces an
infinite number of possible portfolios differ from those of individual securities
combining to form a portfolio. The investor tries to choose the optimal portfolio
taking into consideration the risk return characteristics of all possible portfolios.

TECHNICAL ANALYSIS
Technical analysis is a method of evaluating securities by analyzing the
statistics generated by market activity, such as past prices and volume.
Technical analysis do not attempt to measure a security’s intrinsic value, but
instead use charts and other tools to identify patterns that can suggest future
activity.
Just as there are many investment styles on the fundamental side, there
are also many different types of technical traders. Some rely on chart patterns,
others use technical indicators and oscillators and most use some combination
of the two. In any case, technical analyst’s exclusive use of historical price and
volume data is what separates them from their fundamental counterparts. Unlike
fundamental analysts, Technical analysts don’t care whether a stock is
undervalued- the only thing that matters is a security’s past trading data and
what information this data can provide about where the security might move in
the future.

1. The market discounts everything.

 2. Price moves in trends.
3. History trends to repeat itself.
INVESTMENT ANALYSIS
Investment is the employment of funds on assets with the aim of earning
income or capital appreciation. Investment has two attributes namely time and
risk. Present consumption is sacrificed to get a return in the future. The sacrifice
that has to be borne is certain, but the return in the future may be uncertain. This
attribute of investment indicates the risk factor. The risk is undertaken with a view
to reap some return from the investment. Investment means some monetary
commitment.

RISK
Every investment is characterized by return and risk. Risk can be defined
in terms of variability I returns. “Risk is the potential for variability in returns”. An
investment whose returns are fairly stable is considered to be low risk
investment, where as an investment whose returns fluctuate significantly is
considered to be a high-risk investment. Equity shares whose returns fluctuate
significantly are considered to be a high-risk investment and those are
considered as risky investment.

ELEMENTS OF RISK
The total variability in return of a security represents the total risk of that
security. Systematic risk and unsystematic risk are the two components of total
risk. Thus

Systematic risk /
Total risk
Unsystematic risk

SYSTEMATIC RISK
The impact of economic, political and social changes is system wide and
that portion of total variability in security returns caused by such system wide
factors is referred to as systematic risk. Systematic risk is further sub divided into
interest rate risk, market risk and purchasing power risk.
UNSYSTEMATIC RISK
The risk of price changes due to the unique circumstances of a specific
security, as opposed to the overall market. The risk can be virtually eliminated
from a portfolio through diversification. This risk is unique of peculiar to a
company or industry and affects it in addition to the systematic risk affecting all
securities. The unsystematic or unique risk affecting specific securities arises
from two sources:
(1). The operating environment of the company, and
(2). The financing pattern adopted by the company. These two types of
unsystematic are referred to as business risk and financial risk respectively.
 1.2 INDUSTRY PROFILE

The capital market is the market for securities, where companies and
government can raise long term funds. The capital market includes the stock
market and the bond market. The capital market is basically divided into:

Primary market
• Secondary market

The primary market is the part of capital market that deals with the issuing of new
securities.

The secondary market is the financial market for trading of securities that have
already been issued in an initial private or public offering.

EVOLUTION
Indian Stock Markets are one of the oldest in Asia. Its history dates back to
nearly 200 years ago. The earliest of security dealing in India are meager and
obscure. The East India Company was the dominant institution. In those days
the business in its loan securities used to be transacted towards the close of
the Eighteenth century.

By 1830’s business on corporate stocks and shares in bank and cotton

presses took place in Mumbai. Through the trading list was broader in 1839,
there was only half a dozen brokers recognized by banks and merchants during
1840 and 1850.
The 1850’s witnessed a rapid development of commercial enterprise and
brokerage business attracted many men into the field and by 1860 the number of
brokers increased into 60.
 In 1860-61 the American Civil War broke out the cotton supply from United
States to Europe was stopped. Thus the ‘Share Mania’ in India began. The
number of brokers increased to about 200 to 250. However at the end of the
American Civil War in the 1965, a disastrous slump began (for example, Bank of
Bombay share that had touched Rs. 2,850 could only be sold at Rs. 87).
At the end of the American Civil War, the brokers who thrive out of Civil
War in 1874 found a place in a street (now appropriately called as Dalal street)
where they would conveniently assemble and transact business. In 1887, they
formally established in Mumbai, the “Native Share and Stock Broker’s
Association” (which is alternatively known as “The Stock Exchange”). In 1895,
the Stock Exchange acquired a premise in the same street and it was
inaugurated in 1899. Thus the Stock Exchange at Mumbai was consolidated.

INDIAN STOCK EXCHANGES – AN UMBRELLA GROWTH

“Stock Exchange means any body of individual whether incorporated or not,
consolidated for the purpose of assisting, regulating and controlling the business of
buying, selling and dealing in securities”
It is market where stocks, shares and other securities are bought and sold.
It is to provide avenue for disposal of securities when the owners feel like. It is an
essential component of the economy and indispensable for the proper
functioning of corporate enterprise.
The business is done using a screen based trading technologies through
dually authorized members of the exchange. The stock exchange is opened to
anyone big or small with money to invest or securities to sell. In modern
capitalized economy almost all commodities even in small are produced on a
large scale and large-scale production implies large amount of capital. The joint
stock company or corporate form of organization is ideally suited to large amount
of capital from all those who have surplus fund. When a joint company issues
stocks and bonds, surplus fund employed profitably in either of them according to
convince and temperament. The stock exchanges enable the investors to shift
from one business to another without any difficulty. An investor who puts his
savings in a company by buying its securities cannot get the amount back from
the company directly. The only way the capital invested in stocks and shares of a
joint stock company may be realized by its owner is through the sale of those
stock and shares to others.

OTC EXCHANGE OF INDIA (OTCEI)

The OTC Exchange of India (OTCEI) has been setup to provide cost
effective and convenient platforms for raising finance from the capital market.
OTCEI was promoted by a consortium of financial institutions sated its operations
in 1992. It is a ring less, electronic, nation wider stock exchange committed to
providing entrepreneurs with a smooth economical vehicle for going public and
investors with a fair, sable and efficient market. Thus the OTCEI brings investors
and promoters closer together.

TRADING PATTERNS OF THE INDIAN STOCK MARKET

Trading in Indian Stock Exchanges is limited to listed securities of public
limited companies. They are probably developed into two categories namely,
specified securities (forward list) and non-specified securities (cash list). Equity
shares of divided paying, growth oriented companies with a paid up capital of at
least Rs. 50 million and market capitalization of at least Rs. 100 million and
having more than 20000 shares are normally put in the specified group and
balance in non-specified group.
Two types of transaction can be carried out on the Indian Stock Exchange:
• SPOT DELIVERY TRANSACTION
• FORWARD TRANSACTION

NATIONAL STOCK EXCHANGE (NSE)

National Stock Exchange (NSE) of India commenced its operations in the
capital market on 3rd November 1994 in Mumbai. The recommendations of
Pherwani committee led to the beginning of NSE.
 The main objective of NSE is to establish a nation wide trading facility for
equities, debt and hybrids:
 To ensure equal access to investors all over the country through
appropriate communication network.
 To provide a fair, efficient and transparent security market to investors by
using an electronic communication network.
 To enable shorter settlement cycle and book entry system.
 To meet current international standards of securities market.

NSE 50-INDEX
The NSE 50 Index, commonly known as Nifty. It is a market capitalization
weighted index. It was introduced in April 1996, replacing the earlier NSE-100.
The objective of the NSE 50- Index is
• To reflect the market movement more accurate.
• To provide fund manager with a bench mark for measuring portfolio
performance.
• To establish a basis for introducing index based derivative product.

BOMBAY STOCK EXCHANGE (BSE)

The stock exchange, Mumbai, popularly known as “BSE” was established
in 1875 as “the native share and stock brokers association. It is the oldest one in
Asia, even older than the Tokyo Stock Exchange, which was established in 1878.
It is a voluntary non-profit making association of persons (AOP) and is currently
engaged in the process of converting itself into demutualised and corporate
entity. It has evolved over the years into its present status as the premier stock
exchange in the country. It is the first stock exchange in the country to have
obtained permanent recognition in 1956 from the government of India under the
Securities Contract (Regulation) Act, 1956.
The exchange, while providing an efficient and transparent market for
trading in securities, debt and derivatives upholds the interests of the investors
and ensures redressed of their grievances whether against the companies or its
own member-brokers. It also strives to educate enlighten the investors by
conducting investor education programs and making available to them necessary
informative inputs.
A governing board having 20 directors is the APEX body, which decides
the policies and regulates the affairs of the exchange. The governing board
consists of 9 elected directors, who are from the broking community (one third of
them retire every year by rotation), three SEBI nominees, six public
representatives and an executive director and chief operating officer.
The executive director as the chief executive officer is responsible for the
day-to-day administration of the exchange and the chief operating officer and
other heads of departments assist him.
The exchange has inserted new rule No. 126 A in its Rules, byelaws and
Regulations pertaining to constitution of the executive committee of the
exchange. Accordingly, an executive committee, consisting of 3 elected directors,
3 SEBI nominees or public representatives, executive director, CEO and Chief
Operating Officer has been constituted. The committee considers judicial and
quasi matters, in which the governing board has powers as an Appellate
Authority, matters regarding annulment of transactions,
Admission, continuance and suspension of member brokers, declaration of a
member broker as defaulter, norms, procedures and other matters relating to
arbitration, fees, deposits, margins and other moneys payable by the member
brokers to the exchange etc.

SEBI’s ROLE IN STOCK EXCHANGE

Every Stock Exchange needs recognition from central Government. Any
Stock Exchange, which is desirous of being recognized, may make an
application to Central Government. The application should be accomplished by a
company of byelaws of the stock exchange for the regulation and control of
contracts and a copy of the rules regarding in general to the constitution of the
stock exchange ensure fair dealing and protect investors, stock exchange is
willing to comply by other conditions, which Central Government may impose and
it is in the interest of trade and of the public to grant recognitions, it may
recognize the stock exchange.

SEBI’s POWER IN RELATION TO STOCK EXCHANGE

The SEBI ordinance has given it the following powers:-
1. It may call periodical returns from Stock Exchange.
2. It has the power to prescribe maintenance of certain documents by the
stock exchanges.
3. SEBI may call upon the exchange or any mate to furnish explanation or
information relating to the affairs of the stock exchange or any member.
4. It has the power to approve byelaws of the stock exchange for regulation
and control of contracts.
5. It can amend byelaws of stock exchange.
6. In certain areas it can license the dealers in securities.
 1.3 COMPANY PROFILE

UNICON SECURITIES PRIVATE LIMITED

UNICON is a financial services company which has emerged as a one-
stop investment solutions provider. It was founded in 2004 by two visionary and
flamboyant entrepreneurs, Mr. Gajendra Nagpal and Mr. Ram M. Gupta, who
possess expertise in the field of Finance. The company is headquartered in New
Delhi, and has its corporate office in Mumbai with regional offices in Kolkata,
Chennai, Hyderabad and Noida.
UNICON is a professionally managed company led by a team with
outstanding managerial acumen and cumulative experience of more than 400
man years in the financial markets The Company is supported by more than
4500 Uniconians and has a team of over 900 business offices in 235 cities
across India.
With a customer base of over 200,000 the Unicon Group has an eye for
the intricate financial needs of its clients and caters to both their short – term and
long – term financial needs through a comprehensive bouquet of investment
services. It has been founded with the aim of providing world class investing
experience to the investing community. These services range from offline &
online trading in equity, commodities and currency derivatives to debt markets to
corporate finance and portfolio management services. The company has a
sizable presence in the distribution of 3rd party financial products like mutual
funds, insurance products and property broking. It also provides expert Advisory
on Life Insurance, General Insurance, Mutual Funds and IPO’s. The distribution
network is backed by in-house back office support to provide prompt and efficient
customer service
The Equity broking arm – UNICON Securities Pvt. Ltd offers personalized
premium services on the NSE, BSE & Derivatives market. The Commodity
broking arm Unicon Commodities Pvt. Ltd offers services in Commodity trading
on NCDEX and MCX. The UNICON group also has a PCG division providing
investments solutions for High Net Worth Individuals. The Corporate Advisory
Services arm – Unicon Capital Services (P) Ltd offers entire gamut of Investment
Banking services to corporates.
UNICON can boast of some of the most respected names in the private
equity space like Sequoia Capitals, Nexus India Capital and Subhkam Ventures
as its shareholders.

MISSION :

“To create long term value by empowering individual investors through superior
financial services supported by culture based on highest level of teamwork,
efficiency and integrity”.

VISION :

“To provide the most useful and ethical Investment Solutions - guided by values
driven approach to growth, client service and employee development”.
GROUP COMPANIES

FIXED INCOME &

INVESTMENT
BANKING
UNICON
CAPTIAL
SERVICES Pvt.
Ltd.
DISTRIBUTION
FINANCE (SHARES UNICON
& IPO)
INSURANCE
UNICON ADVISORS Pvt.
FINCAP Pvt. Ltd.
Ltd.
UNICON
FINANCIAL
INTERMEDIARIE
S Pvt. Ltd.

COMMODITIES
TRADING IN TRADING
EQUITIES &
DERIVATIVES
UNICON
UNICON COMMODITIE
SECURITIES S Pvt. Ltd.
Pvt. Ltd. REAL ESTATES
UNICON
REAL
ESTATES Pvt.
Ltd.

MANAGEMENT TEAM
 Mr. GAJENDRA NAGPAL – Founder & CEO

 Mr. RAM M GUPTA – Co-Founder & President

 Mr. Y.P. NARANG – Head-Fixed Income Group

 Mr. SANDEEP ARORA – Chief Operating Officer

 Mr. VIKAS MALLAN – Chief Financial Officer

 Mr. SUBHASH NAGPAL – Director-Strategic Planning & Implementation

 Mr. RAJEV B SHARMA – Country Head-Wealth Management

 Mr. VIJAY CHOPRA – National Head-Business Alliances

 Mr. MANMOHAN TIWARI – Country Head-Equity Sales

 Mr. ANURAG NAYAR – Chief Technology Officer

 Ms. ANJALI MUKHIJA – Chief Compliance Officer

PRODUCT AND SERVICES
Unicon customers have the advantage of trading in all the market
segments together in the same window, as we understand the need of
transactions to be executed with high speed and reduced time. At the same time,
they have the advantage of having all Advisory Services for Life Insurance,
General Insurance, Mutual Funds and IPO’s also.
Unicon is a customer focused financial services organization providing a
range of investment solutions to our customers. We work with clients to meet
their overall investment objectives and achieve their financial goals. Our clients
have the opportunity to get personalized services depending on their investment
profiles. Our personalized approach enables clients to achieve their Total
Investment Objectives.
Our key product offerings are as follows:

Equity
Commodity
Depository
Distribution
NRI Services
Back Office
Fixed Income
Investment Banking
Currency Derivatives
Portfolio Management

1. EQUITY:

UniconEasy
Browser based trading terminal that can be accessed by a unique ID and
password. This facility is available to all our online customers the moment they
get registered with us
UniconSwift
Application based terminal for active traders. It provides better speed, greater
analytical features & priority access to Relationship Managers. Greater exposure
for trading on the margin available.

2. COMMODITY:

Unicon offers a unique feature of a single screen trading platform in MCX and
NCDEX.Unicon offers both Offline & Online trading platforms.
Live Market Watch for commodity market (NCDEX, MCX) in one screen.
Add any number of scrips in the Market Watch.
Tick by tick live updation of Intraday chart.
Greater exposure for trading on the margin available
Common window for market watch and order execution.
Key board driven short cuts for punching orders quickly.
Real time updation of exposure and portfolio.
Facility to customize any number of portfolios & watchlists.
Market depth, i.e. Best 5 bids and offers, updated live for all scripts.
Facility to cancel all pending orders with a single click.
Instant trade confirmations.
Stop-loss feature.

3. DEPOSITORY:

Unicon Depository Services offers dematerialization services as a participant in

Central Depository Services Limited (CDSL), through its Depository operations.
The company believes in efficient and cost-effective and integrated service
support to its brokerage business. Unicon Securities Private Limited, as a
depository participant, will offer depository accounts for individual investors as
well as corporates which will enable them to transact in the dematerialized
segment, without any hassles.

Depository offer a safe, convenient way to hold securities as compared to holding

securities in paper form. Our service provides an integrated single platform for all
our clients ensuring a risk free, efficient and prompt depository process.

4. DISTRIBUTION:

Unicon is fast emerging as a leader in the Insurance and Mutual Funds

distribution space. Unicon has over 100 branches and a huge number of
“Business Development Executives” who help to source and service the
customers throughout the country. Unicon is fast becoming the preferred “Vendor
Independent” distribution houses because of providing efficient service like free
pick-up of collection of cheques/DD’s, Keeping track of the premiums etc to its
customers.

Unicon offers the following distribution products:-

 IPO's
 Mutual Funds
 Insurance
 Properties

5. NRI SERVICES:

With India becoming the epicentre of growth the Global Indian feels the need
to be connected to the domestic growth story.
Unicon now offers a convenient and hassle-free way of Investing in the Indian
Securities Market to the people who are living outside India and wish to
participate in the Indian Growth story.
Procedure for NRI operations in Indian Capital Markets:-
The NRI can deal with only one bank at any point of time.
He is allowed to invest only 5% of the paid up capital of a company. The
aggregate paid up value of equity of any company purchased by all NRI's and
OCBs cannot exceed 10 percent of the paid up capital of the company and in
the case of convertible debentures, the aggregate paid up value of each series
of debentures purchased by all NRI's and OCBs cannot exceed 10 % of the
paid up value of each series of convertible debentures.
He can enter only into delivery based trades, all deliveries must only be
routed through beneficiary accounts and not directly through the broker.
Shares bought by him cannot be sold unless the payout of the same is
received from exchange.
All purchase and sale transactions have to be reported to the RBI by the
designated bank.
Original brokers contract notes have to be submitted to the designated Bank
branch, within 24 hours of the transaction.
He will be required to make bill to bill payments/ settlements. No
adjustments of purchase against sale consideration should be done.
Shares cannot be bought against the shares sold in the same settlement.
All Purchase and Sales will be dealt separately for payments / receipts.
Sale proceeds of any transaction not reported/approved by the RBI is
allowed to be credited to the NRE/NRO savings/demat account. The
transaction will have to be reversed in the account and losses if any will be
borne by the client.
All tax liabilities arising out of buying and selling of securities will be handled
by the designated bank.

6. BACK OFFICE:

Unicon through its online back-office aims to increase the transparency and
provides you the link to view the details of your account online anytime and
anywhere.
Here you have the advantage of viewing the following reports online:
Sauda Details
Financial Ledger
Net position for the day
Net position Detail (for the complete financial year)
E-Contract Note
 7. FIXED INCOME:

• The Fixed income vertical of UNICON Group deals in Sovereign Paper

and Money Market/Fixed Income Instruments Broadly, it undertakes
following:

• Dealing in all types of money market instruments viz. Commercial paper

(Origination & Placement), Certificate of Deposit and Treasury Bills both
in Primary and Secondary market.
• Dealing in Government securities (including securities of Oil, Fertilizer &
Food Bonds) and other PSU/ Corporate bonds with counterparties like
Banks, Primary Dealers, Mutual Funds, Insurance Companies,
Regional Rural Banks, Cooperative Banks, Central & State PSUs,
Housing Finance Companies, NBFCs & Corporates.
• Retailing of Central, State Government Securities and Bonds to PF
Trusts, Universities
• Advisory Services to PF Trusts.
• Arrangers for Private placement of Bonds & placing it with Banks,
Mutual funds, Insurance Companies & Corporates.

• Securitization of receivable portfolio of Housing Finance Companies,

Banks & NBFCs by way of Pass through certificates.

8. INVESTMENT BANKING:

The Investment Banking arm of Unicon Capital Services (P) Ltd. caters to the
funding requirements of corporates. Our wide experience and market knowledge
as a leading securities firm ensures that clients’ requirements are met at
optimum cost. By constantly improving our knowledge capital and remaining
focused on client needs, we aim to create significant value for our clients by
helping them execute the right capitalization strategy. We also intend to initiate
merchant banking services (Capital Markets Fundraising) in the short term
(Merchant Banking License pending)

Offerings
Private Equity (PE) Syndication
We specialize in the syndication of the private equity for the Indian companies in
high-growth markets on their capitalization/re-capitalization strategies, which
helps them to achieve their growth targets. Our team of professionals ensures
complete confidentiality, strong focus on implementation and quick turnaround
time. Access to key decision makers at PE funds gives us an edge in optimal
structuring and efficient closure of transactions. We service our clients through
various stages of the PE deal namely collateral preparation, investor shortlisting,
commercial term sheet, due diligence and final closure.
Mergers & Acquisitions(M&A) Advisory
We provide both buy-side and sell-side advisory services as part of our M&A
advisory offering. We advise clients during the entire transaction process right
from target identification to deal closure. We have an experienced and highly
qualified team with more than 40+ man-years of experience which specializes in
identification and short listing of potential targets, strategic planning of an
acquisition and arranging capital for the transaction, if needed.
Debt Syndication
Our offerings include:
• Project Finance / Term Loans for Expansion - Arranging Long-term loans

for setting up new projects from Financial Institutions and Banks

• External Commercial Borrowings (ECBs) - Arranging LIBOR-linked loans
• Foreign Currency Convertible Bonds (FCCB)-Arranging FCCB Loans
• Working Capital Facilities - Arranging fund-based and non-fund based
limits for clients from Banks at competitive rates
• Trade Finance - Arrangement of trade finance (Buyer's / Supplier’s
Credit)
 • Inter-Corporate Deposits – Borrowing and Placement

9. CURRENCY DERIVATIVES:

Currency Futures
Currently in India, US Dollar Indian Rupee (USD INR) currency futures are
traded on the NSE and MCX. Since its introduction in Aug 2008, USD INR
futures have seen a 1500% burst in volume growth. Unicon offers clients the
opportunity to trade this product, either in online or offline mode as per their
needs. The product provides ample liquidity to function both as a speculative
tool and as a hedging instrument for exporters and importers. The attractive
features of the product are as follows
Unlike currency forwards offered by banks, currency futures trading does
not have to be backed by an underlying merchant transaction exposure
Tight bid ask spreads; usually 0.25 paisa wide
Margin requirements less than 5% to take exposure on a lot size of
$1000
New asset class for diversification for all resident individuals
Commodity traders can hedge against unfavourable movements since
gold, crude etc. are quoted in dollars
For exporters and importers, no credit line required from their Banker as
is the case with forwards
Ideal tool for those with smaller exposures, as in the case of travel needs,
educational payments etc.

Unicon Advantage
Online & Offline trading facility on all the bourses
Exclusive daily commentary and research reports by our Currency
analyst team
Regular updates on Dollar INR movement with calls to buy and sell
Special consultancy to Exporters, Importers & Corporate for their Forex
transactions
Receive education on the product through seminars/con-calls organized
 by Unicon
Your Cash Margin with Unicon Securities can be used for either segment
– Equity, Commodity or Currency.

Other awaited products

Euro INR is expected to be introduced anytime now
SEBI has also recommended introduction of Pound Sterling (GBP) and
Japanese Yen (JPY) futures in the near future
Currency options are also expected to be added to the basket of products
soon.

10. PORTFOLIO MANAGEMENT:

Portfolio Management Services

Gone are the days when an investor could directly participate in the capital
markets, for they have not only become far more complex in terms of
compliances, methodologies, effects and analysis but also need a constant
tracking mechanism. As is the case globally, the Indian investor has also
realized the advantages of seeking professional advice in order to not only
manage but also augment his portfolio.

We at Unicon in our constant endeavor to bring to our esteemed clients global

methodology have developed a proprietary model that has enabled us to
outperform all major indices with a fair degree of consistency, over the longer
term. We continue to be positive of both our approach and the Indian capital
markets in general and especially so after UPA’s landslide mandate to guide
the country over the next 5 years. However, we believe that the out-
performance is more stock-specific and the major indices only provide a
barometer for evaluation. This view is expected to only be enhanced going
forward, with larger players entering the markets with globally fine-tuned
analytical tools.

The Portfolio Management Schemes of the Company offer Discretionary

Schemes (Unicon Optimizer & Unicon Growth) for Individuals, Corporate
Bodies, Partnership firms, Proprietors, Non Resident Indians etc. The
Company is registered with SEBI enabling it to undertake Portfolio
Management activities under a specific license.

The Schemes, duly approved by SEBI, are managed by a highly competent

team comprising of portfolio managers and equity strategists, backed by a
team of fundamental, technical and derivatives analysts. The principle
objectives are to identify investment opportunities through globally recognized
analytical methodologies, given pre-defined risk parameters construct
portfolios to incorporate client objectives periodically review of portfolios in
order to consistently deliver returns surpassing the benchmarked index and
tailor-make portfolios to incorporate a judicious mix of equity, quazi-equity,
money market instruments and derivate products.
PMS is a very personalized service wherein each portfolio has to be
specifically constructed in order to reflect the objective and risk appetite of a
particular client. Our qualified managers are constantly evolving methodologies
and financial models that provide them with a composite mix of:
1. Medium term comprising of value investing and other fundament tools
2. Short term comprising primarily of technical analysis and tools.
3. Hedging strategies comprising of derivative products.
Along with this water tight investment evaluation strategy we have up in place
an equally foolproof client servicing and feedback methodology. All Investment
advisors are hand picked and trained on a gamut of Wealth product, this
ensures that he is in a very good position to deliver a wholesome wealth
experience to the client.
UNICON PMS provides following benefits:
Strong Research Team
Profile based investment solution
Professional Fund Management
Strict Risk Management
Timely performance reporting
Periodic reviews & rebalancing
Dedicated relationship manager