“Introduction to Capital Markets”

Capital market u.s gives the embodiment of free enterprise. Organizations swing to them to

raise stores expected to capital market the working of industrial facilities, office structures,

planes, trains, ships, phone lines, and different resources; to direct innovative work; and to

help a big group of other fundamental corporate exercises.

A significant ppart of the cash originates from such real establishments as annuity stores,

insurance agencies, banks, establishments, and schools and colleges. Progressively, it

ooriginates from people also. As noted in part 3, 40 percent of U.S. families possessed

regular stock in the mmid-1990s. Notv very many speculators would purchase partakes in

an organization unless they knew they could offer them later on the off chance that they

required the assets for some other reason. Money mmarkets and other capital markets

enable financial specialists to purchase and offer stocks persistently.

“The business sectors assume a few different parts in the Indian economic also. They are a

wellspring of salary for financial specialists” Whenever stocks or other budgetary resources

ascend in esteem, financial specialists end up wealthier; frequently they spend a pportion of

this extra riches, reinforcing deals and advancing monetary development.

In addition, since speculators purchase and offer offers day by day by desires for how

gainful organizations will be later on, stock costs give moment criticism to corporate

officials about how financial specialists judge their execution. Stock qualities reflect

speculator responses to government strategy as we if the administration receives approaches

that financial specialists accept will hurt the budget and friends paybacks, the market

decreases; if financial specialists trust arrangements will encourage the economy, the

market rises.

0
Faultfinders have recommended that foreign financial specialists concentrate excessively on

here and now benefits; regularly, these examiners say, organizations or arrangement

producers are debilitated from making strides that will demonstrate valuable over the long

since they may require here and now changes that will discourage stock costs.

Since the market mirrors the aggregate of great sums choices by a great many financial

specialists, there also no great method to test this hypothesis. In any occasion, Americans

pride themselves on the proficiency of their securities exchange and other capital markets,

which empower marvels amount.

These business sectors owe their accomplishment to some grade to PCs, however they

likewise rely upon convention and trust - the trust of one intermediary for another and the

trust of both in the great confidence of the clients they speak to convey securities after a

deal or to pay for buys. Incidentally, this trust is manhandled. Yet, amid the last 50 years,

the management has expected an inexorably imperative part in guaranteeing legitimate and

impartial managing.

Therefore, markets have succeeded as proceeding with wellsprings of speculation supports

that keep the economy developing and as gadgets for giving numerous Americans a chance

to partake in the country's riches. To work positively, markets require the free stream of

data. Without it, speculators can't stay state-of-the-art with advancements or measure, to the

best of their capacity, the genuine estimation of stocks.

Various wellsprings of data empower speculators to take after the resources of the market

every day, hourly, or even moment by-minute more intricate yearly reports, and

1
intermediary explanations to tell investors how they are getting along.

Moreover, financial specialists can read the market pages of every day daily papers to

discover the cost at which specific stocks were exchanged amid the past exchanging

session. They can survey an variety of files that measure the general pace of market action;

the most outstanding of these is the which tracks 30 conspicuous stocks. Financial

specialists likewise can swing to magazines and pamphlets committed to breaking down

specific stocks and markets.

Certain digital TV programs give a stable tributary of news about developments in stock

costs. Furthermore, now, speculators can utilize the Internet to get up-to-the-tiny data about

individual stocks and even to organize stock exchanges.

2
 SCOPE OF THE STUDY

 ‘Investor can assess the company economic strong point and factors that effect the
company. Scope of the study is limited.

 The topic is selected to analyses the factors that affect the future EPS of a company
based on fundamentals of the business.

 tThe mmarket standing of the company studied in the order to give a better scope to
the aAnalysis is helpful to the investors, owners, creditors for the rating of the
company”

3
 NEED OF THE STUDY
 To know the trading in share market.
 Sustaining good records requires discipline, just like good trading.
 “which can offer a wealth of information to improve their odds of success”

OBJECTIVE OF THE STUDY

This study is done to know about “Primary and Secondary capital market” (Stock
exchange) activities.

 To know the market conditions

 To know how the prime market intermediaries communicate companies and
investors.
 To know how the prime market actions used by the companies in their new entry
issue.
 To know how the companies listed in the stock exchanges.
 “To know how trading activity is to be done”.
 “To know the complete awareness of subordinate market

4
 METHODOLOGY

The data collection methods include both the Primary and Secondary Collection
methods.

1. Primary Collection Methods:

This method includes the data collected from the personal discussions with
the official personals.

2. Secondary Collection Methods:

Secondary data collected from the records from the organization .

LIMITATIONS OF THE PROJECT

- Time limited to 45 days’s only.

- Several other plans that could have been considered were not done.

- Lack of knowledge with the brokers.

- Difference of theory from practice.

- Lack of essential knowledge and technology.

5
REVIEW OF LITERATURE
CAPITAL MARKETS

Theimarketiwhereiinvestmentifundsilikeibonds,iequitiesiandimortgagesiareitradediisiknow
niasitheicapitalimarket.iTheiprimaryiroleiofitheicapitalimarketiisitoiinvestmentsifromisaver
siwhoihaveiexcessifundsitoitheionesiwhoiareirunningiaishortage.iTheifinancialimarketioffe
rsibothilongitermiandishortifunds.iCapitalimarketiisitheibarometeriofitheieconomyiandirepr
esentsitheimacroeconomiciaffairsiofitheicountry.iFinanceimarketireductionsitheifutureiand
iitiisireflectioniofifutureiofitheieconomy.iInitheilongiruniitiisiaitrueimeasureiofitheihealthiofi

anyieconomy.

Initheishareimarketieconomy,itheicapitalimarketiplaysiaivitaliroleibyibringitheicommonisa
vingipersonsitoiinvestiinicorporateisanctuaries.iTheiworlditrendiisithatievenitheicollectivei
countriesilikeiChinaiandiRussiaiareimovingitowardsicapitalisticieconomyibyiinvitingithei
privateiinvestmentsiintoitheiindustry.
Amongitheitools,imutualifunds,ibondsiandiderivativeiinstrumentsiareimoreiactiveiwhichih
aveiseizediaisubstantialishareiiniresourceideploymentigivingiaitestitoitraditionalimonetaryi
assetsisuchiasifinancialiinstructionsicredits.iSimilarly,itoolsilikeideepidiscountibonds,izero
icouponibondsiandiotheribondsiwithiveryilongiprimeiofilifeiperiodicompeteiwithitraditiona

litermisavingitools.i

TheifinancialiMarketsiareicomparativelyiforilong-
termifinancialiinstrumentsi(e.g.ibondsiandistocks).iTheiriroleicanibeibriefiasifollows:i
 TheifinancialiSectoriisitheiindicatoriofitheiinherentistrengthiofitheieconomy.i
 Itiisitheibiggestisourceiofifundsiwithilongiandiindefiniteimaturityiforicompaniesiandith
erebyienhanceditheicapitaliinformationiinitheicountry.
 Itihelpsiinichannelingitheisavingsipooliinitheieconomyitowardsioptimaliallocationiofi
capitaliinitheicountry.

6
STRUCTUREiANDiSIZEiOFiTHEiMARKET:

TodayiIndiaihasitwoinationaliexchanges,itheiBombayiStockiExchangesi(BSE)ianditheiNat
ionaliStockiExchangei(NSE).iEachihasifullyielectronicitradingiplatformsiwithiaroundi10,0
00iparticipatingibrokingioutfits.iForeignibrokersiaccountifori30iofithese.iThereiareisomei
8600icompaniesilistedionitheirespectiveiexchangesiwithiaicombinedimarketicapitalizationi
neari$135.5bn.iAnyimarketithatihasi
iqualifiedithisisortiofiprogressihasianiequallyisubstantialidemandiforihighlyiefficientisettle

mentiprocedures,iIniIndiai89.9%iofitheitrades,iaccordingitoitheiNationaliSecuritiesiDeposi
tory,iareisettlediinidematerializediformiiniaiTirollingisettlementienvironment.iIniadding,i
tradesiareisureibyitheiNationaliClearingiCorporationiofiIndiaiLtdiandiBankiofiIndiaiShareh
oldingiLtdi,iClearingiCorporationihousesiofiNSEiandiBSEirespectively.

GLOBALISATIONiINiCAPITALiMARKET:
i

Withitheicomprehensiveicapitalichangesiwitnessedigloballyitowardsimoreimarket-
orientedieconomies,itheigovernmentiofiIndiaitooihasiboardediuponiradicalieconomicipolic
yimeasuresitoireviveiitsieconomy.iTheiIndianiCapitaliMarkets,iwhichihaveiattainediaicurio
uslyihighidegreeiofigrowthiinitheilastiperiod,iareipoisediforiaifurtherileapiforwardioverithei
nexti10iyearsiWithitheiopeningiofitheieconomyitoimultinationalianditheiadoptioniofimore
iliberalieconomicipolicies,itheieconomyiisimoreidrivenimoreitowardsitheifreeimarketiecon

omy.iTwoimajorireasonsiwhyiIndianisecuritiesiareinowiprogressivelyistarediasiattractiveit
oiinternationaliinvestorsiareitheirelativelyihighireturnsilikenediwithimoreidevelopedigloba
limarketsiasiwelliasitheilowicorrelationiwithiworldimarkets.iHoweveriuntilitheiearlyi90s,ith
eiforeigniinvestor’sionlyiwayiofiaccessingitheiIndianiCapitalimarketsiwasithroughilistedic
ountryifunds.i498iForeigniInstitutionaliInvestorsiwhoiholdi1325isubaccountsiwithiainetiin
vestmentiofiapproximatelyi$15bn.iAtipresentitheistockimarketiconsistsiofi23iregionalistoc
kiexchangesianditwoiNationaliStockiExchangesiknowniasiNSEiandiOTCETi(OveritheiCo
unteriExchangeiofiIndia).
i

7
i SCENARIOiOFiINDIAiCAPITALiMARKET:
Improvementsiinitheisecuritiesimarket,iparticularlyitheiestablishmentiandiauthorizationiofi
SEBI,imarketistrong mindediallocationioficapitals,iscreenibasedinationaliwideiexchange,
idematerializationiandielectricitransferiofisecurities,irollingisettlementiandibanionideferrali

products,isophisticatediriskisupervisioniandiresultsitrading,ihaveigreatlyiimprovedithei
regulatoryiframeiworkiandiefficiencyiofitradingiandiexpenditure.iIndianimarketiisinow
isimilaritoimanyiindustrializedimarketiinitermsiofiainumberiofiqualitativeilimits.

Securitiesimarketiareimarketsiinifinancialiassetsioriinstruments.iBusinessisupervisions,ibu
sinessiunitsianditheiGovernments,iCentralioristateiissuesitheseiPublicisectoriundertakingsi
alsoiissueitheseisecurities.iTheseiareithusisourcesiofifundsitoitheiissuers.

Securitiesiareitheiclaimsionimoneyiandiareilikeipromissoryinotes.iSecuritiesiareisourcesiof
ifundiforicompanies,iGovt.ietc.iTheiexternalisourcesiofifundsiofitheicompaniesiareiasi

follows:
 Longitermifunds:i
 Ownershipicapital-equityiandipreferenceicapital.
 Debticapital-
debenturesiandilongitermiborrowingsiinitheiformiofidepositsifromipublicioricreditilimitsior
iadvancesifromibanksiandifinancialiinstitutions.i

 Shortitermifunds:
 Borrowingsifromibanks.
 Tradeicreditsiandisupplier’sicredits.
TheiSecuritiesiMarketicaniagainibeiclassifiediinto:

 PRIMARYiMARKET:iAiprimaryimarketiisiaimarketiisiaiwhereisecuritiesiareiiss
ueditoitheipubliciforitheifirstitime.iNewiissuesiareidealtiwithiinithisimarket.iTheinewiissues
ihaveithreeifunctionsitoiperformiorigination,iunderwritingiandidistribution.iThereiareithree

iwaysibyiwhichiaicompanyimayiraiseicapitaliiniprimaryimarket.

 Publiciissue
 Rightiissue

8
 PrivateiPlacement

IntermediateiinitheiPrimaryimarketiareimerchantibankers,icollectingibankers,iregistrantsia
nditransferiagents,ibrokeriunderwriters,iadvertisingiagencies,iprinters,istock-
brokersiandisolicitorsiandimailingiagents.

 SECONDARYiMARKET:iSecondaryimarketiisiaimarketiwhereisecurities,iwhichiha
veialreadyiissuediinitheiprimaryimarket,iareitraded.iThisimarketiconsistsiofiallistockiexcha
ngesirecognizedibyitheiGovt.iofiIndia,iandiisiregulatediunderitheisecuritiesicontract(regula
tion)iact1956.TheiBSEiisiprincipalistockiexchangeiiniIndia,iwhichisetsitheiotheristockimar
kets.

IntermediateiinitheiSecondaryimarketiareibrokers,ijobbers,idealers,iarbitrators,iinvestment
iadvisors,iportfolioimanagersiandisub-brokers.

EVOLUTIONiOFiINDIANiSECURITIESiMARKET:

TheioriginationiofitheiIndianiSecuritiesiMarketimayibeitracedibackitoi1875,iwheni22enter
prisingibrokersiunderiaiBanyanitreeiestablisheditheiBombayiStockiExchangei(BSE).iOveri
theilasti125years,itheiIndianisecuritiesimarketsiiniAsia.iToday,iIndiaimarketsiconformitoi
internationalistandardsibothiinitermsiofistructureiandiinitermsiofioperatingiefficiency.

TRADITIONALiTRADINGiSYSTEM:

Theitraditionalisystemiofitradingiinvolvedilotsiofihueiandicry.iTheitradersiofitheishareiuse
ditoishoutiinitheitradingiarenaianditheibuyeriuseditoishoutiandiquoteihisirates.iIfitheiratesi
matcheditheidealiwasipreparediforitheibuyerianditheiselleriandioneiforitheiexchange.iBy
itheiendiofitheidayitheibrokerigetsitheidailyivolumeisheeticonsistingiofitheilistiofiallitheitra

nsactionsienterediintoibyimember.iAnyidiscrepanciesiwereireporteditoitheiexchange.iThei
clientididitheiconfirmationiatitheiendiofitheiday.iTheiwholeisceneimadeiaicommonimanisca
rediofitheistockimarketiandidueitoiitsiuncertaintiesiitiwasiconsiderediasihighlyiriskyiandihi
gh-riskitakersionlyiuseditoiinvestitheirimoneyiinitheishareibazaar.i

9
PRESENTiTRADINGiMECHANISM:
i

TheiNationaliStockiMarketiSystemiprovidesisingleinationwideisecurities.iItienablesiani
investoriinioneipartiofitheicountryitoitradeiatitheibestiquotesiwithianiinvestorilocatediini
otheripartiofitheicountryithroughitheimembersiofitheistockiexchangesiandisubsequently
icleariandisettleitheitradeiinianiefficientiandicostieffectiveimanner.iTheiprimaryiobjective

iofitheistockimarketiisitoiprovideicleariopportunityitoitheiinvestorsithroughoutitheicountryi

toitradeianyisecurityiirrespectiveiofitheisizeiofitheiorderioritheibrokerithroughiwhomithei
orderiisirouted.iThisiprovidesitheifacilityitoiexecuteitheibuyiorderiatitheilowestipriceiinithei
stockimarketilocatedianywhereiinitheicountryiwithoutiany-extraicostitoitheiinvestors.
Thereiwillibeinoitradingiflooriinitheiexchange.iInstead,ieachitradingimemberiwillihaveia
icomputeriatihisiowniofficeianywhereiiniIndiaiwhichiwillibeiconnecteditoitheicentralicomp

uterisystemiatitheiNSEithroughileasedilinesioriVSATS(VeryismalliApertureiTerminals),i
forianiinterimitransitioniperiodiofisiximonthsiandisubsequentlyibyisatelliteilink.iVSATisiisi
veryirelativelyismalleridishesisimilaritoidishiantennaiforicableiTViandihaveitheibenefitiofi
notibeingiveryiexpensive.iThisimodeiofitradingiisiknowniasi“ONLINEiTRADING””.

OBJECTIVESiOFiPRESENTiTRADINGiSYSTEM:

Toireduceiandieliminateioperationaliinefficienciesiinherentiinimanualisystemsitoiincrease
ditradingicapacityiinistockiexchange.iImproveimarketitransparency,ieliminateiunmatchedi
tradesiandidelayedireporting.Provideiforionilinei&iofflineimonitoring,icontroli&isurveilla
nceiofitheimarket.Promoteifairnessi&ispeedyimatching.
Smoothimarketioperationsiusingitechnologyiwhileiretainingitheiflexibilityioficonventional
itradingipractices.Setiupivariousilimitations,irulesiandicontrolsicentrally.

Consolidateitheitradesidataionielectronicimediaitoiinterfaceiwithitheibrokersibackiofficeisy
stem.Provideipubliciinformationioniscripiprices,iindicesiforialliusersiofitheisystem.Provid
eianalyticalidataiforiuseiofistockiexchange.

10
 THEiMECHANISM:

Theibrokeriofistockitradingigetsitheimembershipiatitheistockiexchangeiafterifullifillingiai
setioficonditions.iTheibrokeriisiconnectedionilineiwithitheistockiexchange.iOnitheisystemi
heiconstantlyigetsitheirealiquotesiinitheimarket,ithereiposition,itheidemandiandisupplyirate
s,inumberiofibuyersiandisellersiativariousirates.i
Theicustomeridropsiinitheiofficeiofitheibrokeriorigivesihimiaicalliregardingitheisaleiori
purchaseiofitheiparticularinumberiofishares.iTheibrokeritakesihisiorderiandiinputsithatiinihi
sionlineisystem.iIfiaiproperimatchiregardingithatipriceiisiavailableiinitheimarketithatiisiifi
both theibuyiandisaleiratesimatch,itheniitiimpliesithatitheidealiisistuck.iIfitheisuitablei
matchiisinotifounditheiorderigetsistackediinitheisystemitilliaisuitableicounteriorderiemerges
ianditheitransactioniisiclosediatithatipointiofitime.

RECOGNIZEDiSTOCKiEXCHANGES:

Thereiarei22istockiexchangesiiniIndia.iTheseiwereifoundediatidifferentitimes,iinidifferenti
places,iunderidifferentilaws.iHowever,ialliofithemihaveibeenirecognizediandiregulatediun
derisingleilaw,inamelyitheisecuritiesicontractsi(Regulation)iAct,i1956.iNoipersoniis,iinipri
nciple,ialloweditoiorganizedistockiexchangesiotherithanitheirecognizedioncei[sectioni19(1
)iofitheiSC(R)iAct,i1956].i

INDIAN CAPITAL MARKET

The Indian Capital Market stands one of the most seasoned capital markets in Asia which
developed around 200 years prior.

Sequence of the Indian capital markets:

 Trading of corporate offers and stocks in Bank and cotton Presses in Bombay.

 Sharp increment in the resources marketplace agents inferable from the quick
improvement of business undertaking.

11
  Outbreak of the aAmerican Civil War and ' sShare Mania ' in India.

Capital Market Instruments

tThe capital markets are generally for long haul (more prominent than one year
development) budgetary iinstruments (e.g securities and stocks). It is the biggest wellspring
of assets with long and uncertain development for organizations are there by improves the
capital arrangement in the nation. It offers a venture roads to financial specialists. The
capital market instruments are the vehicles between the organizations and the financial
specialists. The budgetary instruments that have short or medium term development periods
are managed in the currency advertise while the money related instruments that have long
development periods are managed in the ccapital mmarket. The diverse sorts of monetary
instruments that are exchanged the wealth markets are value instruments, credit showcase
instruments, protection instruments, outside trade instruments, half breed instruments and
subordinate instrument Stock market is the capital and SEBI is the driver. These
mechanisms are of two kinds

 Primary

 Secondary

A section from subsidiary instruments, the accompanying is the significant mediums of

moving toward capital markets:

 Equity shares

 Preference shares

 Debentures/bonds

 American Depository Receipts (ADR)

12
  Global Depository Receipts (GDR)

 Derivatives

 Employee investment opportunity design.

[A] EQUITY SHARES:

They are likewise called as basic stock. The regular load of an organization are its genuine
proprietors, the claim the organization and expect a definitive hazard connect with
possession. Their obligation, anyway is limited to the measure of their interest in case of
selling out, these investors have a lingering claim on the advantages of the organization
after the cases of all loan bosses and favored investors, are settled in full. Regular stock like
favored stock, as no development date.NSE began exchanging the values section (Capital
Market fragment) and inside a limited ability to focus 1 year turned into the biggest trade in
India to the extent that volumes executed. Exchanging volumes in the value section have
developed quickly with normal every day tturnover expanding from Rs.17 ccrores .The
Equities area gives you a knowledge into the values fragment of NSE and furthermore gives
ongoing statements and insights of the values advertise. Top to bottom data with respect to
posting of securities, exchanging frameworks and procedures, clearing and settlement,
hazard administration, exchanging measurements and so forth are accessible here.

Approved, ISSUED AND OUTSTANDING SHARES:

An approved offers is the greatest no. of offers that the articles of affiliation (AOA) of the
company allow it to issue in the market. An organization can anyway alter its AOA to
expand the number. The quantity of offers that the organization has really issued out these
approved offers is called as issued shares. An organization more often than not likes to have
various offers that an approved however un-issued. Extraordinary offers allude to the
quantity of offers issued and really held by open. The enterprise can purchase back piece of
its supplied stock and hold it as a treasury stock.Par esteem , book esteem and exchanging
esteem :The standard estimation of an offer of stock is just a recorded figure in the
corporate contract and is of minimal financial importance. An organization ought not, be
that as it may, issue normal stock at a cost not as much as standard esteem, in light of the

13
fact that any rebate from standard esteem ( sum by which the issuing cost is not as much as
the standard esteem) is viewed as an unexpected obligation of the claim wrest to the leasers
of the organization. In case of liquidation, the investors would be lawfully obligated to
leasers of any markdown from standard esteem.

Illustration: assume that xyz inc. is prepared to begin business out of the blue and sold
10000 offers rupees 10 each . the investors value bit of the monetary record would be basic
stock @ 10 each at standard value:10000 shares issued and remarkable RS100000 Total
offers holders value RS100000.The book esteem per offer of regular stock is the investors
value – add up to resources short liabilities and favored stocks as recorded on the
accounting report partitioning by the quantity of offers extraordinary .assume that xyz is
currently 1 year old has produced RS 500000 after-assess benefits, yet pays number
isolating. Accordingly, held profit are RS 50000. the investors value is currently RS
100000+ RS 50000 =150000 and the book esteem per share is rs 1500000/10000=RS
25.Although one may expect the book esteem per offer of stock to relate to the selling
esteem (per share) of the organization, most every now and again does not. Frequently assts
are sold for not as much as their qualities, especially while exchanging costs are included.

Market esteem

Market esteem per share is the present cost at which the stock is exchanged. For effectively
exchanged stocks,

showcase value citations are promptly accessible. For the numerous in dynamic stocks that
have thin markets, cost are hard to acquire. Notwithstanding when reachable, the data may
reflect just the offer of a couple of offers of load of normal stock and not exemplify the
market estimation of the firm as the entirety. The market estimation of an offer of normal
stock will as a rule contrasts from its book esteem and its selling esteem. Market esteem per
offer of regular stock is an element of the present and expected future profits of the
organization and the apparent danger of the stock with respect to financial specialists.

Privileges of normal investors:

1.Rights of salary:

14
In the event that the organization neglects to pay authoritative intrigue and guideline and
installments to loan bosses, the leasers can make legitimate move to safeguard that rule
installments are made of organization is sold. Basic investors, then again, have legitimate
plan of action to an organization for not circulating benefits. just if administration, the top
managerial staff, or both occupied with extortion may investors indict their case and
conceivably constrain the organization to pay profits.

1. voting rights:

The basic offers of an organization are its proprietors and they are qualified for choose a top
managerial staff. In an expansive organizations shares holders as a rule practice just
aberrant control through the directorate they choose. The board, thusly, select the
administration, and the administration really controls the tasks of the organization. In a sole
proprietorship, association, or little organization, the proprietors more often than not control
the activity of the business straightforwardly.

2. intermediaries and intermediary challenges:

basic investors are qualified for one vote in favor of each offer of stock that they claim . it is
typically troublesome, both physically and fiscally, for the most investors to go to a
partnerships yearly gatherings. Along these lines, numerous investors vote of methods for
an intermediary, an authoritative record by which investors relegate their entitlement to vote
to someone else.

3. voting strategies:

Contingent upon the corporate sanction, the top managerial staff is chosen under either
larger part lead voting framework or an aggregate voting framework. Under the dominant
part run framework, stock

holders have one for each offer of stock that they claim, and they should vote in favor of
every chief position that is open. Under cumulating voting framework, an investor can
gather votes and cast them for not as much as the aggregate number of chiefs being chosen.

15
The aggregate number of votes of each investors is equivalent to the quantity of offers the
investor times the quantity of chiefs being chosen.

ISSUE MECHNISM:

The achievement of an issue depends, incompletely, on the Issue Mechanism.

The strategies by, which new issues are made of

1. open issue through outline.

2. Offer available to be purchased.

3. Situation.

4. Rights issue.

1. Public Issue Through Prospectus :

Under this strategy, the issuing organizations themselves offer specifically to overall
population a settled number of offers at an expressed value, which on account of new
organizations is constantly the face estimation of the securities, and on account of existing
organizations, it might something incorporate a guaranteed to guarantee emerging out of
unsuitable open reaction. Straightforwardness and wide conveyances of offers are its
imperative and preferences.

The establishment of people in general issue strategy is a plan, the base substance of

which are endorsed by the Companies Act 1956. It additionally gives both common and
criminal obligation for any error in the plan. Extra exposure necessities are likewise ordered
by the SEBI.

The substance of the plan, entomb aria, include:

16
 Name and enlisted office of the issuing organization.

 Existing and proposed exercises.

 Board of executives.

 Location of the business.

 Authorized, bought in and proposed issued of cash-flow to open.

 Dates of opening and shutting of membership list.

 Names of intermediary, financier, and other from whom application frames

alongside duplicates of prospectus can be acquired.

 Minimum membership.

 Names of financier , assuming any, alongside an announcement that in the

conclusion of the chiefs, the resources of the financier are adequate to meet the un

17
Profile
Ms. Chanda Kochhar is the Managing Director and Chief Executive Officer of ICICI

Bank Limited, India’s largest private sector bank. She is widely recognised for her role

in shaping the retail banking sector in India and for her leadership of the ICICI Group,

as well as her contributions to various forums in India and globally.

Ms. Kochhar began her career, with erstwhile ICICI Limited in 1984 and was elevated

to the Board of Directors of ICICI Bank in 2001. She was instrumental in establishing

ICICI Bank during the 1990s, and subsequently headed the infrastructure finance and

corporate banking business in ICICI Limited. In 2000, she took on the challenge of

building the nascent retail business, with strong focus on technology, innovation,

process reengineering and expansion of distribution and scale. The Bank achieved a

leadership position in this business. During 2006-2007, she successfully led the Bank’s

corporate and international banking businesses during a period of heightened activity

and global expansion by Indian companies. From 2007 to 2009, she was the Joint

Managing Director & Chief Financial Officer during a critical period of rapid change

in the global financial landscape. She was elevated as Managing Director & CEO of

ICICI Bank in 2009 and is responsible for the Bank’s diverse operations in India and

overseas. She also chairs the boards of the Bank’s principal subsidiaries, which include

India’s leading private sector life and general insurance companies.

18
In addition to her responsibilities at the ICICI Group, Ms. Kochhar is a member of the India

– Japan Business Leaders Forum and the US-India CEO Forum. She is currently the

President of the International Monetary Conference, an organization that annually brings

together the chief executives of approximately 70 of the world’s largest financial

institutions from 30 countries, along with officials from government institutions. She is also

the Deputy Chairperson of the Indian Banks Association. She is on the boards of Indian

Council for Research on International Economic Relations, National Institute of Securities

Markets and Institute of International Finance.

Ms. Kochhar has been a member of the Prime Minister’s Council on Trade & Industry, the

Board of Trade and High-Level Committee on Financing Infrastructure. She was also co-

chair of the World Economic Forum’s Annual Meeting in 2011.

Ms. Kochhar received an honorary Doctor of Laws from Carleton University, Canada in

2014. The university conferred this award on Ms. Kochhar in recognition of her pioneering

work in the financial sector, effective leadership in a time of economic crisis and support for

engaged business practices.

19
Board of Directors
Board Members
Ms. Chanda Kochhar,

Managing Director & CEO

Mr. M. K. Sharma, Chairman
Mr. N. S. Kannan,
Mr. Dileep Choksi
Executive Director
Mr. Homi R. Khusrokhan
Mr. Rajiv Sabharwal,
Dr. Tushaar Shah
Executive Director
Mr. V. K. Sharma
Ms. Vishakha Mulye,
Mr. V. Sridar.
Executive Director
Mr. Alok Tandon
Mr. Vijay Chandok,

Executive Director

20
 Mr. M. K. Sharma
Chairman, ICICI Bank Limited

Mr. Mahendra Kumar Sharma, aged 68, retired in May’07 as the Vice-Chairman of

Hindustan Unilever Limited. As Vice Chairman he had responsibility for H.R, Legal &

Secretarial, Corporate Affairs, Corporate Communications, Corporate Real Estate

functions and New Ventures, Plantations & Export businesses of the Company.

Additionally he handled M&A activities relating to acquisition of companies in the food

& beverages segment as well as disposal of business in the fields of animal & poultry

feeds, dairy, tea plantation, etc. During 2004-2006 he chaired the four Member National

Management Committee of the Company with two Managing Directors and the Finance

Director being the other three members. He displays passion for ensuring highest

standards of Corporate Governance and adherence to responsible and ethical conduct in

all aspects of business operations.

He holds Bachelors Degree in Arts and Bachelors of Law Degree from Canning College

University of Lucknow. He completed Post Graduate Diploma in Personnel Management

from Department of Business Management, University of Delhi and Diploma in Labour

Laws from Indian Law Institute, Delhi. In 1999 he was nominated to attend Advance

Management Programme at Harvard Business School.

After a six-year stint in DCM Limited, he joined Hindustan Lever Limited in 1974 as
Legal Manager and handled Legal & Secretarial work in diverse areas. He joined the
Management

21
 Mr. Dileep Choksi
Director, ICICI Bank Limited

Mr. Dileep Choksi is appointed as a Director of the Bank effective April 26, 2013. Mr.

Dileep Choksi is a qualified chartered accountant and has over 35 years of professional

experience. He was formerly the Joint Managing Partner of Deloitte in India. In addition to

tax and commercial law, his areas of practice have included the audit & assurance functions.

In the field of banking, he has held the positions of director and member of advisory boards.

He has dealt with multinational corporations and leading national enterprises. He is

presently a non-executive Director of two subsidiary companies of ICICI Bank - ICICI

Lombard General Insurance Company Limited and ICICI Home Finance Company Limited.

22
 Mr. Homi R. Khusrokhan
Director, ICICI Bank Limited

Mr. Homi R. Khusrokhan was first appointed on the Board of ICICI Bank Limited effective

January 21, 2010. He retired as the Managing Director of Tata Chemicals Limited in 2008.

He has over 40 years experience in the corporate sector. He has earlier been the Managing

Director of Tata Tea Limited and Glaxo India Limited. He has experience and expertise in

agriculture related businesses, international business and mergers & acquisitions.

Mr. M. S. Ramachandran
Director, ICICI Bank Limited

Mr. M. S. Ramachandran was first appointed on the Board of ICICI Bank Limited effective

April 25, 2009. Mr. M.S. Ramachandran holds a Bachelors degree in Mechanical

Engineering. He joined Indian Oil Corporation in 1969 and worked in several areas before

being appointed as Executive Director, Oil Coordination Committee set up by the

Government of India in 1998. He joined the Board of Indian Oil Corporation as Director

(Planning & Business Development) in 2000. He was the Chairman of Indian Oil

Corporation from 2002 to 2005.

Mr. M.S. Ramachandran was conferred with Chemtech-Pharma Bio Hall of Fame Award,
2005 for outstanding contribution to the petroleum and petrochemicals industry

23
 DATA ANALYSES AND INTERPRETATION
STOCK MARKET

Stock Prices
Company : LICHSGFIN ( 500253 )
Period ( 01-Dec-2017 to 31-Dec-2017 )

Open High Low Close No. of No. of Total Turnover

Date WAP
Price Price Price Price Shares Trades (Rs.)
1/12/17 845.00 874.30 845.00 869.05 868.43 1,94,950 5,088 16,92,99,654
2/12/17 876.00 884.70 851.10 856.45 871.74 3,14,497 8,650 27,41,59,002
3/12/17 846.00 868.80 845.20 851.55 859.53 1,91,405 5,153 16,45,17,854
4/12/17 850.00 859.90 845.50 849.95 852.83 1,50,450 4,421 12,83,08,850
7/12/17 850.00 857.00 836.20 840.10 847.62 1,22,889 3,798 10,41,63,548
8/12/17 840.00 853.50 832.00 849.80 843.12 1,70,081 4,725 14,33,99,416
9/12/17 840.00 853.00 823.20 826.55 834.82 2,20,565 5,085 18,41,31,368
10/12/17 822.00 833.25 820.10 824.00 826.69 2,37,803 6,931 19,65,89,208
11/12/17 838.00 838.00 805.65 810.85 821.05 1,78,386 4,768 14,64,63,084
14/12/17 812.00 816.00 792.00 795.05 802.13 1,98,698 5,679 15,93,81,234
15/12/17 770.00 802.90 770.00 785.70 791.19 2,19,339 6,635 17,35,39,765
16/12/17 770.00 799.45 770.00 790.10 789.74 2,30,770 6,746 18,22,47,765
17/12/17 799.90 799.90 782.00 787.00 789.81 1,60,496 4,108 12,67,61,793
18/12/17 785.00 791.65 768.40 772.20 781.41 1,04,409 3,521 8,15,86,269
21/12/17 776.70 783.00 763.25 766.80 773.64 1,18,620 4,076 9,17,68,806
22/12/17 767.05 780.50 767.05 774.00 775.18 1,04,623 3,332 8,11,01,904
23/12/17 775.00 796.90 773.00 791.95 789.70 2,55,763 5,910 20,19,76,722
24/12/17 770.00 805.05 770.00 790.10 796.22 1,84,449 4,528 14,68,62,794
29/12/17 799.00 814.00 789.00 803.75 804.92 2,58,766 8,030 20,82,85,848
30/12/17 800.00 812.80 800.00 802.80 806.96 1,00,847 3,400 8,13,79,908
31/12/17 810.00 815.00 797.15 803.55 804.22 1,85,268 3,407 14,89,95,836

24
 10,000
9,000
8,000
7,000
6,000
5,000
4,000 Series1
3,000
2,000
1,000
0

INTERPRETATION:
On 1st dec open value has increased to 869.05 than compared to higher value
of EPS 866.43. Then coming to higher price to 865.23 wholly the conclusion is 811.49.
Then coming to the volume on the same dates or days volume are increased.
Because totally this month LIC House finance. EPS value is increased i.e. percentage
21%.

25
Stock Prices
Company : ANDHRABANK ( 532418 )
Period ( 01-Dec-2017 to 31-Dec-2017 )

Open High Low Close No. of No. of Total Turnover

Date WAP
Price Price Price Price Shares Trades (Rs.)
1/12/17 115.05 116.80 114.30 115.90 115.52 84,410 917 97,51,014
2/12/17 118.00 121.95 117.50 118.25 119.71 8,01,076 5,250 9,58,96,608
3/12/17 119.85 121.55 118.30 119.15 120.31 3,64,964 3,015 4,39,09,611
4/12/17 120.00 120.00 116.50 117.20 117.94 1,69,543 1,585 1,99,96,008
7/12/17 118.00 118.90 115.20 115.85 117.18 1,28,895 1,230 1,51,03,983
8/12/17 116.40 117.35 113.70 116.95 115.58 1,32,164 1,301 1,52,75,648
9/12/17 116.00 116.80 114.40 114.75 115.40 1,85,019 1,259 2,13,52,091
10/12/17 115.00 118.00 113.25 117.45 115.15 3,11,462 1,889 3,58,65,468
11/12/17 118.85 119.00 113.00 113.65 115.17 3,86,266 2,184 4,44,84,452
14/12/17 113.50 114.80 111.70 112.15 112.57 1,39,618 1,363 1,57,17,332
15/12/17 113.00 113.00 105.00 106.10 108.21 2,77,440 2,419 3,00,22,879
16/12/17 106.00 107.90 101.65 103.80 103.89 3,41,565 2,683 3,54,86,504
17/12/17 104.00 106.60 102.40 105.80 105.02 2,50,937 2,064 2,63,54,577
18/12/17 103.55 105.00 102.00 102.35 103.61 2,76,763 1,683 2,86,74,593
21/12/17 102.45 104.45 102.10 102.55 103.28 1,11,448 1,248 1,15,10,143
22/12/17 103.50 104.25 103.10 103.65 103.70 87,022 876 90,23,826
23/12/17 104.40 105.70 104.30 105.20 104.97 1,89,798 1,430 1,99,23,466
24/12/17 105.95 108.20 105.95 107.35 107.23 2,57,976 1,907 2,76,62,449
29/12/17 107.35 108.00 105.10 105.50 105.91 5,97,681 1,097 6,32,98,938
30/12/17 106.35 106.35 103.05 104.00 103.72 3,63,796 939 3,77,33,915
31/12/17 105.00 105.40 104.10 104.35 104.61 88,834 666 92,93,282

26
 100,000
90,000
80,000
70,000
60,000
50,000 Series1

40,000 Series2

30,000
20,000
10,000
0
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21

INTERPRETATION:
On 1st dec open value has increased to 115.90 than compared to higher value
of EPS 114.51. Then coming to higher price to 121.32 wholly the conclusion is 120.54
Then coming to the volume on the same dates or days volume are increased.
Because totally this month Andhra Bank. EPS value is increased i.e. percentage 11%.

27
Stock Prices
Company : BAJAJAUT ( 532977 )
Period ( 01-Dec-2017 to 31-Dec-2017)

Open High Low Close No. of No. of Total Turnover

Date WAP
Price Price Price Price Shares Trades (Rs.)
1/12/17 1,502.65 1,647.00 1,480.00 1,637.55 1,618.07 1,72,520 3,075 27,91,50,087
2/12/17 1,650.00 1,699.00 1,648.00 1,690.80 1,684.10 1,13,531 3,356 19,11,97,730
3/12/17 1,705.00 1,712.00 1,666.00 1,684.15 1,698.25 34,188 1,735 5,80,59,756
4/12/17 1,686.00 1,686.00 1,638.10 1,651.40 1,657.58 16,759 1,038 2,77,79,300
7/12/17 1,651.00 1,674.00 1,621.20 1,629.65 1,656.27 25,385 951 4,20,44,438
8/12/17 1,625.00 1,650.00 1,621.00 1,640.55 1,638.69 11,373 741 1,86,36,817
9/12/17 1,644.00 1,685.00 1,625.20 1,670.70 1,671.04 35,876 1,374 5,99,50,231
10/12/17 1,678.95 1,690.00 1,628.10 1,643.15 1,651.25 36,837 1,271 6,08,26,971
11/12/17 1,652.00 1,732.00 1,652.00 1,724.50 1,712.98 1,52,019 4,479 26,04,05,276
14/12/17 1,724.00 1,800.00 1,724.00 1,784.30 1,763.36 1,29,493 4,057 22,83,43,375
15/12/17 1,795.00 1,799.90 1,730.25 1,742.70 1,755.27 85,917 2,333 15,08,07,405
16/12/17 1,744.00 1,750.00 1,702.00 1,729.75 1,724.98 38,729 1,588 6,68,06,828
17/12/17 1,731.00 1,743.85 1,717.00 1,728.05 1,726.55 22,822 1,403 3,94,03,297
18/12/17 1,725.00 1,748.60 1,700.00 1,704.10 1,715.99 11,911 707 2,04,39,111
21/12/17 1,710.00 1,710.00 1,638.00 1,672.05 1,673.85 1,17,379 1,108 19,64,74,911
22/12/17 1,678.00 1,706.75 1,678.00 1,695.35 1,698.00 26,551 1,050 4,50,83,663
23/12/17 1,700.00 1,720.00 1,700.00 1,705.75 1,709.66 25,592 863 4,37,53,699
24/12/17 1,709.00 1,734.95 1,686.00 1,700.00 1,712.38 51,312 1,195 8,78,65,759
29/12/17 1,715.00 1,728.25 1,677.00 1,683.10 1,702.03 13,882 661 2,36,27,599
30/12/17 1,681.10 1,710.00 1,657.00 1,698.50 1,679.12 60,044 1,350 10,08,21,117
31/12/17 1,714.85 1,779.80 1,705.20 1,761.70 1,751.86 86,972 2,164 15,23,62,559

28
100000
90000
80000
70000
60000
50000 Series2

40000 Series1

30000
20000
10000
0
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21

INTERPRETATION:
On 1st dec open value has increased to 1,637.45 than compared to higher value of EPS
1,647.52. Then coming to higher price to 1,684.18 wholly the conclusion is 1.686.32
Then coming to the volume on the same dates or days volume are increased.
Because totally this month Baja auto. EPS value is increased i.e. percentage 29.25%.

29
Stock Prices
Company : SUNPHARMA ( 524715 )
Period ( 01-Dec-2017 to 31-Dec-2017 )

Open High Low Close No. of No. of Total Turnover

Date WAP
Price Price Price Price Shares Trades (Rs.)
1/12/17 1,466.00 1,554.95 1,458.15 1,538.80 1,524.80 58,619 2,729 8,93,81,964
2/12/17 1,560.00 1,592.00 1,485.00 1,495.35 1,537.02 1,05,464 4,185 16,20,99,880
3/12/17 1,500.00 1,520.00 1,487.00 1,494.60 1,502.69 36,825 1,588 5,53,36,678
4/12/17 1,494.60 1,507.90 1,470.00 1,481.70 1,487.85 27,739 1,363 4,12,71,406
7/12/17 1,500.00 1,500.00 1,448.00 1,453.25 1,462.90 14,239 1,047 2,08,30,269
8/12/17 1,453.25 1,480.00 1,446.10 1,466.95 1,464.02 16,320 1,140 2,38,92,822
9/12/17 1,465.00 1,496.95 1,465.00 1,479.90 1,481.17 36,257 2,166 5,37,02,617
10/12/17 1,490.00 1,490.00 1,449.10 1,453.35 1,461.50 30,652 1,813 4,47,97,784
11/12/17 1,477.00 1,477.00 1,430.00 1,441.45 1,450.01 18,227 1,223 2,64,29,316
14/12/17 1,459.00 1,476.00 1,445.50 1,450.75 1,460.63 15,965 1,258 2,33,18,990
15/12/17 1,472.00 1,472.00 1,446.00 1,450.45 1,457.22 7,060 645 1,02,88,005
16/12/17 1,453.00 1,474.90 1,453.00 1,467.90 1,467.38 18,616 1,431 2,73,16,745
17/12/17 1,477.00 1,490.00 1,455.20 1,481.30 1,480.95 17,740 942 2,62,71,994
18/12/17 1,484.00 1,517.00 1,480.00 1,497.85 1,504.67 29,002 1,655 4,36,38,530
21/12/17 1,505.00 1,513.95 1,478.05 1,495.30 1,495.16 20,924 640 3,12,84,650
22/12/17 1,499.95 1,508.80 1,480.00 1,503.55 1,499.38 8,492 495 1,27,32,710
23/12/17 1,513.55 1,542.00 1,505.00 1,538.00 1,528.19 19,145 1,260 2,92,57,246
24/12/17 1,539.00 1,573.90 1,521.30 1,563.65 1,553.08 16,866 1,016 2,61,94,315
29/12/17 1,550.10 1,569.00 1,530.00 1,537.95 1,546.48 8,046 506 1,24,42,944
30/12/17 1,535.00 1,538.10 1,505.05 1,518.55 1,518.54 10,914 664 1,65,73,387
31/12/17 1,545.00 1,545.00 1,501.00 1,507.10 1,521.17 9,568 769 1,45,54,546

30
70,000

60,000

50,000

40,000
Series2
30,000 Series1

20,000

10,000

0
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21

INTERPRETATION:
On 1st dec open value has increased to 1,538.80 than compared to higher value of EPS
1596.32 Then coming to higher price to 1,658.25 wholly the conclusion is 1,598.32.
Then coming to the volume on the same dates or days volume are increased.
Because totally this month Sun Pharmacy. EPS value is increased i.e. percentage
25.36%.

31
CONCLUSION

 TheocomprehensiveostudyoofocapitalomarketoinstrumentoatoInteroConnectedo
stockoexchangeohasobeenoanoenlighteningoexperienceostressingoonotheopositi
veoaspectsoonoDematerialization.

 Andosettlementoofoshares,oderivativeomarketoandocapitaloinstrumentshasodon
eoinowholeolotoofogoodotootheoissuer,oinvestorocompaniesoandocountry.o

 Theodepositoryosystemsohasoreducedotheolagoinodeliveryoandosettlementoofos
ecuritiesobutoalsoosupportedotheocauseoofoprovidingomoreoliquidityotootheose
curityoholder,otheoneedoforosettingoupoofoaodepositoryopaperolessotrading.

 Throughoonlineotradingosystemoandosettlementobecameoinevitableoandounavo
idableoforotheosmoothoandotheoefficientofunctioningoofotheocapitalomarket.o

 Thisosystemohasoprovedoitsoworthinessobyoincreasingoinotheospeedoofotransac
tionsowithinoT+3odaysowhichoareoearlieroT+5odays.

 NowothereoisoaoproposalothatotheosettlementowillobeodoneowithinoT+1daysoin
onearofutureowhichoisoinoitoanoindicationoofoaoboonoinotheosystemoofodematoa

ndocapitalomarketoinstruments.o
 ItohasobeenofairlyolongosinceoderivativeotradingostartedooffoonotheoIndianoInd
exes.o

 Activelyohasofailedotooreallyotakeooffowitholowofiguresobeingotransactedoinot
ermsoofovalueoandovolumes.o

32
SUGGESTIONS

 Thereomustobeoprohibitionoonodisposaloofopromotersoshareholding,oandoalsoo
restrictionsoandotheoexpansionowithoutoprioroapprovaloofotheofinancialoinstit
utionsoforodeclarationoofohigheroamount/orate.
 Theoavailabilityoofoderivativeoproductsoinoeludingoindexofutures,oindexooptio
ns,oindividualostockofuturesoandoindividualostockooptionsore-
enforcesotheooveralloattractivenessoofothisomarketotooforeignoandodomesticoi
nvestors.
 Volumeoofopaperoworkoisosmallobutoitoisoveryocomplicatedotoomaintainodatao
inosystemosootriesotooreduceothatobyoregularoauditoandoupdatingodata.
 MostoofotheoDPsodoonotohaveotheonecessaryoinfrastructureotoohandleotheohig
howorkoloadoofotransactionsoleadingotoomayoerrorobyoDPs,osoobyogivingofull
oinfrastructureoinformationotooeveryoDOocanoavoidothisoproblem.

 Theopooloaccountodoesn’toknowotheotrueoowneroofotheoshareoandohenceodivi
dendsoareopaidotootheobrokeroinsteadoofoownersobyothisotheobrokerocanodooa
nyomanipulationooroanyofraudowithotheoowner,oforothisotheoownerocanolooseo
hisodividend.o

 Henceoforothisotryotoopayotheodividendodirectlyotootheoowner.

 Ifotheosharesoareofake/forgedowhichodeliveryobyotheobrokerotheoshareholdero
canolooseothatosharesoanohaveotooreceiveoanotherolotoofoissuedosharesofromot
heobrokeroino21odays,othisosystemostandsoabused.o

 Soominimizeothatowaitingodaysoareodeliverotheoissuedosharesotootheosharehol
deroasosoonoasopossible.o

33
BIBLIOGRAPHY

Web sites Referred:

 HDFC.COM

 Sebi.com

 Nseindia.com

 BSE.COM

 Economywatch.com

Referred Text Book:

V.K. Balla “Financial Investment”

Gordon & Natarajan “Financial Markets and Services”

www.icicibank.com
www.capitalmarketindia.com
www.moneycontrol.com

34