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Stock Exchange Online Share Trading At Nirmal Bang
FACULTY NAME:
BY
SAURABH KUMAR
Roll no: 1071470022
ACKNOWLEDGEMENT:
I am neither a research expert nor a trend spotter; I am a management student with foundation of
management principles and theories, who is curious about various sectors and its latest
happenings.
Definitely, I cant ignore the technology, with internet as the backbone and those search engines
which helped me in building up this research project.
To being with, I am obliged to Mr. KISHORE BANG and Mr. DILIP BANG (Managing
Directors Nirmal Bang Securities (PVT) Ltd).who allotted me this interesting topic and with out
whose guidance and constructive criticism this repot might have not been completed .I would
like to thank Broker, Agents franchise owners and individuals. I appreciate for their cooperation
and contributions for helping me in making project factual and information.
I would like to express my heart full gratitude to Mr. GUNJAN SONKER (Relationship
Manager), NIRMAL BANG SECURITIES (PVT) LTD. Who helped me in sharpening my
thinking by cheerfully providing challenging comments and questions. Without the individuals
have provided, this project would have lost much of its refreshing realism. Im also thankful to
the management & all employees of NIRMAL BANG SECURITIES LTD.
I also express my gratitude to Mr. (Director), Mr.(H.O.D) and ALL FACULTY MEMBERS OF
MBA DEPARTMENT OF KANPUR INSTITUTE OF MANAGEMENT STUDIES,
UNNAO who have been instrumental in making this report useful one.
Lastly, I would like to thanks to the ALMIGHTY and my parents for their moral and financial
support and my colleagues with whom I shared my dad-to-day experiences and received lots off
suggestions that improved my work quality.
SAURABH KUMAR
MBA
PREFACES:
In the economy for tightening Business nuts and bolt of any company industries or enterprises it
is necessary to measure it market position in a certain time interval with ever changing theories
and the concept of market.
For this assessment we need the robust methodology of survey. Although surveys does not
reveal the absolute solution of any objectives, but it provides the inclination towards a good
output.
Nirmal Bang a good share trading company in Indian market. In this project we compare the
future of this company. Find the awareness level, market potential of this company etc.
The preparation of this report provides you great pleasure in releasing our work and market
experiences in few pages which shows overall and experienced knowledge and the practical
approach about the style of a professional and thing which we found various affecting to our
marketing and product image.
The project termed as stock Exchange & Online share Trading at Nirmal Bang has made
an effort to find out the issues concerning with the NIRMAL BANG SECURITIES PVT LTD.
TABLE OF CONTENT:
Title page
1-1
Acknowledgement
2-2
Prefaces
3-3
Executive summary
Topic
6-6
Brief introduction
7-8
Research methodology
9-9
10-10
11-13
14-15
16-18
Stock market
19-20
Market participants
21-21
History
22-23
24-36
Company profile
37-43
44-51
52-54
Demat services
55-58
59-65
66-71
72-83
84-98
99-101
Research methodology
102-105
Analysis
106-111
112-111
Limitation
115-115
Bibliography
116-116
EXECUTIVE SUMMARY:
The data collection is an analyzed and some practical tools were applied to get inferences from
the survey. The results are printed in the graphs and diagrams.
The conclusion is that Nirmal Bang securities Pvt Ltd. In India in good condition.
The research report has two sections in its first section company and industry profile is given,
where as second Research Methodology is given which includes samples design, analysis on
sample and presentation is in the form of diagram and charts.
Finally some suggestions with respect to the survey for the future improvement is given to
improve the survey because their competitors have also taken up the surveys.
At the end of the report limitations, SWOT analysis, conclusion of the research and Appendix
which includes questionnaire and the list of the city where the Sriram insight share brokers Ltd
are running. Last there is Bibliography, FAQ, and Glossary that has the technical terms of the
report.
Objectives of study:
To give a brief idea about the benefits available from Mutual Funds investment and idea
of types of schemes available.
To study some of the mutual funds schemes and analyze them observe the funds
management process of mutual funds.
Explore the recent developments in the Mutual Funds in India. To give an idea about the
regulations of Mutual Funds.
RESEARCH METHODOLOGY:
To achieve the objectives of studying the stock market data has been collected Research Methodology
carried fir this study can be two types.
RESEARCH DESIGNE: This research is description of the state of affairs, as it exists at present. So
in this research I used the description research.
DATA SOURCES: In this research, I used primary data from the different brokers, agents,
retailers and investors, and secondary data from Shriram insight Share Brokers Ltd.
RESEARCH APPROACH: Depth study oft he investors perception with respects to equity
investments.
During my project analysis I was very keen to find some key areas which need to be taken care
seriously in the future because these are causing dissatisfaction among distributors.
Most of distribution felt dissatisfaction with there brokers but some of te disappointing areas are-
1. More exposure: Most of distributors want some more exposure for them clients from
their share broking companies. Nirmal Bang is now providing super exposure p to 15 of
the margin (cash segment) the step like this really creates satisfaction for the distributors.
2. Brokerage problem: Some companies have very high brokerage chares which create
differences of market share of different companies and also dissatisfaction among
distributors.
3. Fewer offers: Most of companies lag behind in giving time to time offers in order to
attract new customers.
This stock exchanges, Mumbai, popularity known as BSE was established in 1875 as The
native share and stock brokers associations, as a voluntary non-profit making association.
It has an evolved over the years into its status as the premiere stock exchanges in the country. It
may be noted that the stock exchanges the oldest one in Asia, even older than the Tokyo Stock
Exchanges, which was founded in 1878.
The exchanges, while providing an efficient and transparent market for trading in securities,
upholds the interests of the investors and ensures redressed of their grievances, whether against
the companies or its own members brokers.
It also strives to educate and enlighten the investors by making available necessary informative
inputs and conducting investors education programmers.
A governing board comprises of elected directors, 2SEBI nominees, 7 public representatives and
an executive director is the apex body, which decides the policies and regulates the affairs of the
exchanges.
The executive director as the chief executive officer is responsible for the day today
administration of the exchanges. The average daily turnover of the exchange during the year
2000-01 (April-March) was Rs 3984.19 crores and average numbers of daily trades 5.69 Lakhs
However the averages daily turnover of the exchanges during the year 2001-2002 has declined to
Rs. 1224.10 crores and number of average daily trades 5.69 Lakhs.
The average daily turnover of the exchanges during the year 2001-2003 has declined and number
of average daily trades during the period is also decreased.
The Ban on all deferral products like BLESS AND ALBM in the Indian capital markets by SEBI
with effect from July 2, 2001, abolition of account period settlements, introduction of
compulsory rolling settlements in all scripts trades on the exchanges.
With effect from dec31, 2001 etc. have adversely impacted the liquidity and consequently there
is a considerable decline in the daily turnover at the exchanges. The average daily turnover of the
exchanges present scenario is 110363 (Laces) and number of average daily trades 1057(laces).
The NSE was incorporated is now 1992 with an equity capital of Rs 25 crores. The international
securities consultancy (ISC) of Hong Kong has helped in setting up NSE.
ISE has prepared the details business plans and installation of hardware and software system.
The promotion for NSE were financial institutions, insurances companies, banks and SEBI
capital markets Ltd, infrastructure leasing and financial services Ltd and stock holding
corporation Ltd.
It has been set up to strengthen the move towards professionalization of the capital market as
well as provide nation wide securities trading facilities to investors. NSE is not an exchange in
the traditional sense where broker own and manage the exchanges.
A two tier administrative set up involving a company board and a governing aboard of the
exchanges is envisaged. NSE is a national market for shares PSU bonds, debentures and
government securities since infrastructure and trading facilities are provided.
Some of these have gone on to become the biggest brokers in India. It has opened the market
to a whole segment of people. Earlier, investing in share was done by a limited few most of
who applied in an IPO and stuck with till they wanted money.
Now, not only online trading made life easier for these peoples, it has opened up investing and
trading to segment that never before participated in it. By my rough estimates during my
experiences in India tech trading in India.
Until the arrival brokerage in about 2000 or so, was like driving on Indian road. It was a
familiar story of might is right, big truck (brokers) ruled the market & there were potholes and
pitfalls in the shape of bad deliveries, dishonored contacts, fakes & what not.
Unlike the highways which have remained out of the reach of the Aam admi, the share market
has changed. Somewhere in the nineties there was a whole move to make share electronics &
fungible (like money notes, a share is a share. And move them to the dematerialized (demat)
form.
Slowly, from the physical world shares move to digital world at the NSDL. Then trading
became electronic. First it was a few of the blue chips, then it was most of the blue chips and
slowly it has taken over most of the market.
New issues are today, exclusively electronics. If digitization took care of the back end, it has
also made life at the easy at the front end. In the physical delivery work, one had to talk to a
broker who told you the quotes.
There was no way of knowing if the quote was right. There was no way of knowing if your
trade was made, especially if you made a good call (Bad call, almost inevitably got made). The
broker could say that this was the best price I got and nobody would be wiser.
You would not know if the share came from his account or form the market. You would not
know if the shares were true for the small investors. Odd lots (which we inevitably awarded
during splits, mergers were as good as stock which would never got sold or the broker would
purchase them at a price way below the market price.
Industry about 70% of employees are have online active accounts, many of which were opened
in the ESOP era seems like a long while back), more than 80% of these investors are actives
traders, the number of day traders are less.
But a small chuck of these also dabbles in the future and options market. Besides this obvious
segment which is connected to the online would all days long from the cubicles, there are other
segments which have shown interest in trading due to its case.
Housewives retired professional and even small businessman. What was hitherto a male
dominate sphere also has quite a fem women into trading. The regional stock exchange which
were the way to route trades in the olden days, are now almost defunct with BSE and NSE (NSE
more than BSE) holdings way.
Earlier investors were mostly from the bigger cities. With online trading, it has opened avenues
for investors from the parts of the country with an internet connection.
A few months ago, Business world (Registration/subscription regd.) India reported that: 46 pct of
the trades were done by the top 100 brokers in 1996-97. Todays it is about 66 pct. Going online
via these professional driven by technology is a great way to cut the uncertainties caused by the
middleman out of the business of share trading and make lives easier for the investors.
There will be more competition in this space as brokers try to take over accounts of other
brokers. More specialized and personalized services will be in the offing as the market expands
and as smaller brokers try to survive and evolve into niche players.
A stock market is a public market for the trading of company stock and derivatives at an agreed
price these are securities listed on a stock as well as those only traded privately.
The since of world stock market was estimated at about $36.6 trillions US at the beginning of
October 2008. The total world derivatives market has been estimated at about $791 trillion
faceoff nominal value.
11 times the size of the entire world economy. The value of the derivatives market, because it is
stated in terms of national values, cannot be directly compared to a stock or a fixed income
security, which traditionally refers to an actual value.
Moreover, the vast majority PF derivatives cancels each other out (i.e., a derivatives bet on an
event occurring is offset by a comparable derivatives bet on event not occurring).
Many such relatively illiquid securities are valued as market to model, rather than an actual
market price. The stock are listed and traded on stock exchanges which are entities of an
corporation of mutual organization specialized in the business of bringing buyers and sellers of
the organization to a listing of stock and securities together.
The stock market in the united states in the united states includes the trading of all securities
listed on the NYSE Euro next, the NASDAQ, the Amex, as well as on the many regional
exchanges, e.g. OTCBB and Pink sheets. European examples of stock exchanges included the
London Stock Exchange, the Deutsche Borse.
MARKET PARTICIPANTS:
A few decades ago, worldwide, buyers and sellers were individuals investors, such as wealthy
businessman, both long family histories (and emotional ties) to particular corporations.
Overtime, market have become more institutionalized buyers and sellers are larger institutions
(e.g. Pension funds, insurance companies , mutual funds, index funds, exchange traded funds,
hedge funds investors groups, banks and various other financial institutions).
The rise of the institutional investors has brought with t some improvement in market operations.
This, the government was responsible for fixed(and exorbitant) fees being markedly reduced
for the small investors, but only after the large institutions had managed to break the brokers
solid fronts on fees. (They then went to negotiated fees, but only for large institutions.
However, corporate governance (at least in the west) has been very much adversely affected by
rise of (largely absentee) institutional owners
HISTORY:
Historian Fernando Braudel suggested that in Cairo in the 11th century, Muslim and Jewish
merchant and already set up every form of trade association and had knowledge of many
methods of financial dealings, disproving the belief that these were originally invented later by
Italians.
In 12th century France the courratiers de changes were concerned with managing and regulation
the debts of agricultural communities and behalf of the bank. Because these men also trade with
debts, they could be called the first brokers.
A common misbelieve is that in late 13th century Bruges commodity traders gathered inside the
house of a man called Van der Beurze, and in 1309 they became the Bruges Beurse
institutionalizing what had been.
Until then, an informal meeting, but actually, the family Van der Beurze had a building in
Antwerp where those gathering occurred; the Van der Beurze had Antwerp, as most of the
merchants of that period.
As their primary place for trading. The idea quickly spread around Flanders and neighboring
countries and Beurzen soon opened in Ghent and Amsterdam.
In the middle of the 13th century, Venetian market began to trade in government securities. In
1351 the Venetian government outlawed spreading rumors intended to lower the price of
government securities during the 14th century.
This was only possible because these were independent city states not ruled by a duke but a
council of influential citizens. The Dutch later started joint stock companies, which let
shareholders invest in business venures and get a share of their profits or losses.
In 1602, the Dutch East India Company issued the first share on the Amsterdam stock exchange.
It was the first company to issue stock and bonds.
The Amsterdam stock Exchange (ro Amsterdam Beurs) is also said to have been the first stock
exchange to introduction continuous trade in the early 17th century.
The Dutch pioneered short selling, option trading, debt-equity swaps, and merchant banking.
Units trust and other speculative instrument, much as we know them (Murray Sayle,Japan
Goes Dutch, London Review of books XXIII.7, April 5, 2001).
There are now stock markets in virtually every developed and most developing economy, with
the worlds biggest market being in the United stated, UK, Japan, China, Canada, Germany and
France.
The stock market is one of the most important sources for companies to raise money. This
allows businesses to be publically traded or raised additionally capital for expansion by selling
share of ownership of the company in a public market.
The liquidity that an exchange provides affords investors the ability to quickly and easily sell
securities. This is an attractive feature of investing in stocks, compared to other less liquid
investment such as real estates.
History has shown that the price of shares and other assets is an important part of the dynamic of
economies activity, and can influence or be an indicator of social mood.
An economy where the stock market is on the rise is considered to be an up and coming
economy.
In fact, the stock market is often considered the primary indicators of a countrys economics
strength and development. Rising share prices, for instance, tend to be associated with increased
business investment and vice versa.
Share prices also affect the wealth of household and their consumption.
Therefore, central banks tend to keep an eye on the control and behavior of the stock market and,
in general, on the smooth operation of financial system functions. Financial stability is the raison
dtre of central banks.
Exchanges also act as the clearinghouses for each transaction, meeting that they collect and
deliver the shares, and guarantee payment to the seller of a securities. This eliminates the risk to
an individual buyers or seller that the counterparty could default on the transaction.
The smooth functioning of all these activities facilities economies growth in that lower costs
enterprise risks promote the production of goods and services as well as employment.
In this way the financial system contribution to increased prosperity. An important aspect of
modern markets, however, including the stock markets, is absolute discretion.
For example, in the USA stock we see more unrestrained acceptance of any firm than in similar
markets. Such as, Chinese firms with no significant value to American society to just name one
segment.
This profit USA banker on Wall Street, as they reap large commissions from the placement, and
the Chinese company which yields funds to invest in china.
Yet accrues no intrinsic value to the long-term stability of the American economy, rather just
short-term profits to American business man and the Chinese; although, when foreign company
has a presence in the new market, there can be benefits to the markets citizens.
Conversely, there are very few large foreign corporation listed on the Toronto Stock exchange
TSX, Canadas largest stock exchange. This discretion has insulated Canada to some degree to
worldwide financial condition.
In order for the stock markets to truly facilitate economys growth via lower costs and better
employment, great attention must be given to the foreign participants being allowed in. Relation
of the stock market to the modern financial system.
The financial system in most western countries has undergone a remarkable transformation. One
features of this development is disintermediation. A portion of the funds involved in saving and
financing bank lending and deposit operation.
The general publics heightened interest in investing in the stock market, either directly or
through mutual funds, has been an important component of this process. Statistics show that in
recent decades share have made up an increasingly large proportion of households financial
assets in many countries.
In the 1970s, in Sweden, deposit account and other very liquid assets with little risk made up
almost 60 percent of households financial wealth, compared to less than 20 percent in the 2000s.
The major part of this adjustment in financial portfolio has directly to shares but a good deal now
take the form of various kinds of institutional investment for groups of individuals, e.g., pension
funds, mutual funds, hedge funds, insurance investment of premiums, etc.
The trend towards form of saving with a higher risk has been accentuated by new rules for most
funds and insurance, permitting a higher proportion of shares to bonds.
Similar tendencies are to be found in other industrialized countries. In all developed economies
system, such as the European Union, the United State, Japan and other developed nations, the
trend has been the same: saving has moved away from traditional (government insured) bank
deposits to more risky securities of one sort or another.
Riskier long-term saving required that an individual possess the ability to manage the associated
increased risks. Stock prices fluctuated widely, in marked contrast to the stability of (government
insured) bank deposits or bonds.
This something that could affect not only the individual investors or households, but also the
economy on a large scale. The following deals with some of the risks of the financial sectors in
general and the stock market in particular.
This is certainly more important now that so many newcomers have entered the stock market, or
have acquired other risky investment (such as investment property, i.e., real estate and
collectables.)
With each passing year, the noise level in the stock market rises. Television commentators,
financial writers, analysis, and market strategies are all over taking each other to get investors
attention.
At the same time, individual investors, immersed in chat rooms and message boards, are
exchanging questionable and often misleading tips.
Yet, despite all this available information, investors find it increasingly difficult to profit. Stock
prices skyrocket with little reasons, then plummet just as quickly.
And people who have turned to investing for their childrens education and their own retirement
become frightened. Sometimes there appears to be no rhyme or reason to the market, only folly.
This is a quote from the prefaces to a published biography about the long-terms value oriented
stock investors warren Buffett.
From experiences we know that investors may temporarily move financial prices away from
their long terms aggregate price trend (positive or up trends are referred to as bull markets:
negative or down trends are referred to as bear markets.)
Over-reaction may occur so that excessive optimism (euphoria) may drive prices unduly high or
excessive pessimism may drive unduly low. New theoretical an empirical arguments have since
been put forward against the notion that financial markets are generally efficient (i.e., in the
sense that prices in the aggregate tends to follow a Gaussian distribution.)
(But this largely theoretic academic viewpoint- knows as hard EMH- also predicts that little or
no trading should take place, contrary to fact, since prices are already at or near equilibrium,
having priced in all public knowledge.) The hard efficient-market hypothesis is sorely tested by
such events as the stock market crash in 1987, when the Dow Jones index plummeted 22.6
percentthe largest-ever one-day fall in the United States.
This events demonstrated that share prices can fall dramatically even though, to this day, it is
impossible to fix a generally agreed upon definite cause: a thorough search failed to detect any
reasonable development that might have accounted for the crash. (But note that such events are
predicted to occur strictly by chance, although very rarely.)
It seems also to be the case more generally that many price movements (beyond that which are
predicted to occur randomly) are not occasioned by new information: a study of the fifty largest
one-day share prices movements in the United States in the post-war period seems to confirm
this.
However, a soft EMH has emerged which does not required that prices remain at or near
equilibrium, but only that market participants not be able to systematically profits from any
momentary market inefficiencies.
Various explanation for such large and apparently non-random prices movement have been
promulgated. For instance, some research has shown that change in estimated risks, and the use
of certain strategies, such as stop-loss limit and value at Risk limits, theoretically could cause
financial markets to overcorrect.
But the best explanation seems to be that the distribution of stock market prices is non-Gaussian
(in which case EMH, in any of its current forms, would not be strictly applicable.)
Other research has shown that psychological factors may result in exaggerated (statically
anomalous) stock prices movement (contrary to EMH which assumes such behaviors cancel
out).
Psychological research has demonstrated that peoples are predisposed to seeing patterns, and
often will perceive a pattern in what is, in fact, just noise, (something like seeing familiar shapes
in clouds or ink blots.)
In the present context this means that a succession of good new items about a company may lead
investors to overreact positively (unjustifiably driving the prices up). A period of good returns
also boosts the investors self-confidence, reducing his (psychological) risk threshold.
An example with which one may be familiar is the reluctance to enter a restaurant that is empty;
people generally prefer to have their opinion validated by those of other in the group.
In one paper the authors draw an analogy with gambling. In normal times the market behaves
like a game of roulette; the probabilities are known and largely independent of the investment
decision of the different players.
In times of market stress, however, the game becomes more like poker (herding behavior takes
over). The players now must give heavy weight to the psychology of other investors and how
they are likely to react psychology.
The stock market, as any other business, is quite unforgiving of amateurs. Inexperienced
investors rarely get the assistance and support they need.
In the period running up to 1987 crash, less than 1 percent of the analysis recommendation had
been to sell (and even during the 2000-2002 bear market, the average did not above 5%).
In the run up to 2000, the media amplified the general euphoria, with reports of rapidly rising
share prices and the notion that large sums of money could be quickly earned in the so called In
the run up to 2000, the media amplified the general euphoria, with reports of rapidly rising share
prices and the notion that large sums of money could be quickly earned in the so called new
economy stock market.
(And later amplified the glom which descended during the 2000-2002 bear market, so that by
summer of 2002, prediction of a DOW average below 5000 were quite common).
Irrational behavior:
Sometimes the market seems to react irrationally to economic or financial news, even if that
news is likely to have no real effect on the technical value of securities itself.
But this may be more apparent than real, since often such has been anticipated, and a counter
reaction may occurs if the news is better (or worse) than expected.
Therefore, the stock market may be swayed in either by press releases, rumors euphoria and
mass panic; but generally only briefly, as more experienced investors (especially the hedge funds
quickly rally to take advantage of even the slightest, momentary hysteria.
Over the short-term, stock and other securities can be battered or buoyed by any number of fast
market-changing events, making the stock market behavior difficult to predict . Emotion can
drive prices up and down, people are generally not as rational as they think, and the reasons for
buying and selling are generally obscure.
Behaviorists argue that investors often behave irrationally when making investment decision
thereby incorrectly pricing securities. This causes market inefficiencies, which, in turn, are
opportunities, to make money.
However, the whole notion of EMH is that these non-rational reactions to information cancel out,
leaving the prices of stock determined. The Dow Jones industrial Average biggest gain in one
day was 936.42 points or 11 percent, this occurred on October 12, 2008.
Crashes:
Robert shillers plot of the S&P composite Real prices, Earning, Dividends, and interest Rates,
from irrational exuberance, 2nd. In the prefaces to this edition, Shiller warns, The stock market
has not come down to historical levels: the prices-earnings ratio as I defined it in his book is still,
at this writing [2005], in this mid-20s, far higher than the historical average..people still place
too much confidence in the market and have too strong a belief that paying attention to the
gyration in their investment will someday make them rich, and so they do not make conservative
preparation for possible bad outcomes.
Price-Earnings ratios as predictors of twenty-year returns based upto the plot by Robert shiller.
The horizontal axis shows the real price-earnings ratio of the S&P composite stock price index as
computed in Irrational Exuberance (inflation adjusted price divided by the prior ten-year mean of
inflation-adjusted earning).
The vertical axis shows the geometric average real annual return on investing in the S&P
composite stock prices index, reinvesting dividends, and selling twenty years-did do well when
prices were low relative to earnings at the beginning of the ten years.
Long-term investors would be well advised, individually, to lower their exposer to the stock
market when it is high, as it has been recently, and get into the market when it is low.
This event raised question about many important assumptions of modern economics, namely, the
theory of rational human conduct, the theory of market equilibrium and the hypothesis of market
efficiency.
For some time after the crash, trading in stock exchanges worldwide was halted, since the
exchanges computers did not perform well owing to enormous quantity of trades being received
at one time.
This halt in trading allowed the Federal Reserve System and central banks of other countries to
take measures to control the spreading of worldwide financial crisis.
In the United State the SEC introduction several new measures of control into the stock market
in an attempt to prevent a re-occurrence of the events of Black Monday.
Computer systems were upgrades in the stock exchanges to handle larger trading volumes in a
more accurate and controlled manner. The SEC modified the margin requirement in an attempt to
lower the volatility of common stocks, stock option and the futures markets.
The New York Stock Exchanges and the Chicago Mercantile Exchange introduction the concept
of a circuit breaker. The circuit breaker halts trading if the Dow declines a prescribed number of
points for a prescribed amount of time.
The movement of the prices in a market or sections of a market are captured in price
indices called stock market indices, of which there are many, e.g., S&P, the FTSE and the
Euro next indices.
Such indices are usually market capitalization weighted, with the weight reflecting the
contribution of the stock of the index are reviewed frequently to include/exclude stocks in
order to reflects to reflects the changing business environment.
Leveraged strategies
Stock that a traders does not actually own may be traded suing short selling; margin
buying may be used to purchase stock with borrowed funds; or, derivatives may be used
to control large blocks of stock for a much smaller of amount of money than would be
required by outright purchases or sale.
Short selling
In short selling, the traders borrow stock (usually from his brokerage which holds its
clients shares or its own share on account to lend to short sellers) then sells it on the
market, hoping for the price to all.
The trader eventually buys back the stock, making money if the price fell in the meantime
or losing money if it rose; exiting a short position by buying back the stock is called
covering a short position.
This strategy may also be used by unscrupulous traders to artificially lower the price of a
stock. Hence most markets either prevent short selling or place restriction on when and
how a short sale can occur.
The practice of naked shorting is illegal in most (but not all) stock markets.\
Margin buying:
In margin buying, trader borrows money (at interest)to buy a stock and hopes for it to
rise. Most industrialized countries have regulation that requires that if the borrowing is
based on collateral from other stock the trader owns outright, it can be a maximum of a
certain percentage of those other stocks value.
In the United State, the margin requirements have been 50% for many years (that is, if
you want to make a $100 investment, you need to put up$500, and there is often a
maintenance margin below the $500).
A margin call is made if the total value of the investors account cannot support the loss
of the trade.
(Upon a decline in the value of the margined securities additional funds may be requires
to maintain the accounts equity, and with or wit out the margined securities or any others
within the account may be sold by the brokers to protect its loan position. This investors
is responsible for any shortfall following such forced sale).
Regulation of margin requirement (by the Federal Reserve) was implemented after the
crash of 1929. Before that, speculators typically only needed to put up a little as 10% (or
even less) of the total investment represented by the stocks purchased.
Other rules may include the prohibition of free-riding: putting in an order to buy stocks
without paying initially (there is normally a three-day grace period for delivery of the
stock.)
But then selling them (before the three-days are up) and using part of the proceeds to
make the original payment (assuming that the value of the stocks has not declined in the
interim).
New issuance:
Global issuance of equity and equity-related instrument totaled $505 billion in 2004, a
29.8% increase over the $389 billion raised in 2003. Initial public offer (IPOs) by US
issuers increased 221% with 233offering that raised $45 billion, and IPOs in Europe,
Middle East and Africa (EMEA) increased by 333% from $9 billion to $39 billion.
Investment strategies:
One of the many thing people always want to know about the stock market is, How do I
know money investing? There are many different approaches; two basic methods are
classified as either fundamental analysis or technical analysis.
Technical analysis studies prices action in market through the use of charts and
quantitative techniques to attempt to forecast prices trends regardless of the companys
financial prospects.
One examples of a technical strategy is the Trend following method, used by John W
Henry and risk control and diversification.
Additional, many choose to invent via the index method. One holds a weight or unweight
portfolio consisting of the entire stock market or some segment of the stock market (such
as the S&P 500 or Wilshire 5000).
The principle aim of this strategy is to maximize diversification, minimize taxes from too
frequent trading and ride the general trend of the stock market (which, in the U.S, has
averaged nearly 10% year, compounded annually, since World War II).
Taxation:
According to much national or state legislation, large arrays of fiscal obligation are taxed
for capital gains. Taxes are charged by the state over the transactions, dividends and
capital gains on the stock market, in particular in the stock market.
However, these fiscal obligations may vary from jurisdiction to jurisdiction because,
among other reasons, it could be assumed that taxation is already incorporated into the
stock prices through the different taxes companies pay to the state, or that tax free stock
market operations are useful to boost economic growth.
Founded in 1986 by Sri Nirmal Bang Group is recognized as one of the largest retail
broking houses in India, providing an array of financial products and services.
Our retail and institutional clients have access to product such as equities, derivatives,
commodities, currency derivatives, mutual fund, IPOs, insurance, depository services and
PMS.
Throughout our history, we have fostered one overriding purpose each client with
personal services and quality work by adhering to the principal, we have grown to
become a successful as well-respect firm of highly qualified professional.
The group is headed by Mr. Dilip Bang and Mr. Kishore Bang who bring forward
industry expertise, insight and most important, create an environment of unmatched to
client.
We are registered members of the Bombay Stock Exchanges limited (BSE), National
Stock Exchanges of India limited (NSE), Multi Commodity Exchanges of India limited
(MCX), national commodity & Derivatives Exchanges limited (NCDEX), National Multi
Commodity Exchanges of India limited (NMCE) and MCX stock Exchange limited and
also depository participants of NSDL and CDSL.
MISSION:
To work together with integrity and make customer feel valued.
Vision:
Core value:
RESPECT OUR COLLEAGAUES AND THE BUSINESS ITSELF.
Client relationship from the core of our business. We value each client, no matter what
size, as a long-term relationship. And we seek to provide unmatched services to each
client and place him as a partner at the center of everything we do.
From the very beginning of the relationship, we work closely with every client to identify
his financial goals and risk tolerance levels and leverage our strength of the product
offering, research and financial strength to help achieve his goals. In the process, we
become an professional partners, creating opportunity, adding value and transform vision
into reality.
Timely services
Able team
We have developed a strong and enduring team by recruiting from leading graduate and
postgraduate universities and promoting from within. Our team work together to provide
superior results to our client. At the same time, each of our clients is assigned a specific
team member who owner the relationship, providing continuity, responsiveness and a
point of easy access to the firm.
Culture
We strive to maintain standards at all times and lay emphasis on honesty,
integrity and confidentiality. We speak and act to ensure transparency at all
levels and in everything we do.
Financial strength
The strength of our balance sheet is such that it gives greater confidence to
all our retail and institutional clients in detail with us. The financial strength
of the group helps in future building the network and infrastructure to cater
to the larger market.
INFRASTURUCTURE:
We believe or best infrastructure gives a significant advantage allowing us to provide efficient,
transparent and qualitative services. Our technology supports everything from executive trades
and managing our investors of stocks to communicating up-to-the-second information to our
clients and monitoring for compliance.
Client interface:
We have trading terminal (both direct and indirect), online monitoring, control terminal
(administration terminals) and back office support terminal (settlement terminal) across all
location and centers.
We have Indias best single screen Multi Exchanges Trading Software platform. Our entire centers
across the country are connected through our own network, leased ISDN lines and LAN network,
MPLS and internet.
The high-end IBM serves with sophisticated security features that we use caters to trading points
across the country. This also gives u rte advantage of scalability in terms of location and size of
our planned operations. We provide telephonic and chat support for technical and functional
issues of branches, franchises and all our clients.
Our websites www.nirmalbang.com is comprehensive and provides online feeds, net trading and
provides online feed, net trading portfolio tracking tool. Investors also have access to a wide
range of financial news, information and various research reports facilitating quick decisionmaking.
Our online trading portal at www.nirmalbang.com is equipped with facilities like all segment
broadcasts, multi-features graphs, online payment gateways and automatic password mailer
utility for better security. It user-friendly navigation allows easy viewing of trading accounts,
depository accounts and research reports, which are linked to the trading platform.
The website also has a provision for creating portfolios and monitoring them on a regular basis.
Our wealth trackers module helps investors in getting ready updates n their investment so that
they can know the changing trends of the markets and the impact of the same on their portfolio.
Back office:
For back office operations, we use the lidha Didha system of Apex Soft cell Pvt. Ltd. This is one
of the top most back office software in the industry. It has the capacity to process over one lakh
traders in a five minute frame.
Our operation teams has an easy-to-navigate client login system, which is used to generate
activity reports, short-terms and long-term tax reports, holding and portfolio valuation reports as
well as trading to delivery activity reports.
We also have the requisite infrastructure needed to handles STP, upload and download and
download information to or from exchanges, bank and depositories, support units to ensure
delivery notes, bills and ledgers of trading accounts and cash management services for efficient
and effective fund management within the group.
Internal control:
Compliance and internal control play a major role in determining business strategies as well as
day-to-day operation of the group. A well-equipped risk management department ensures that the
delinquency rates are minimal, while efficient risk management software provides online MTM
margin data to branches and franchisees. Our efficient back-up system and software have been
developed specially for branches and channel partners with a capacity to handle numerous
transactions. Our online position monitoring system ensures better risk management and
surveillance from our head office as well as branches and franchises. Our people from them
cornerstone of the business and their expertise and motivation delivery of exceptional solution
and services to all our clients.
Experienced professional:
Our teams of professional consist of individual with significant experience in securities trading,
market structure, trading technology and portfolio management. They have a strong experience
in trade execution and understanding of order flow dynamics. This combined with technical
analysis of market momentum, help our clients to determine the price at which they buy and /or
sell.
We believe, we are the first choice for our clients because we among the very best at trade
executive solution and assets management services. At Nirmal bang, each and every professional
is focused on turning the initial trade or investment into a collaborative, person-to-person
relationship that keeps delivering true added value.
Research Expertise:
Our research team is headed by two senior research analysts who have more than 15 years of
experience in this field.
Our team of experienced fundamental research and technical analysts provide reports on
industries, sectors, companies and individual stocks. Our research reports are backed by in-depth
research and analysis of emerging as well as current market trends. Besides, our research
analysts also appear on leading business news channel where they share their insights on the
market.
Nirmal Bang Groups business strives the largest number of common people. Consider these:
Equity* /commodity/ currency*/mutual fund/IPO/PMS/insurance/DP products.
Management philosophy:
Nirmal Bang Groups business ventures are highly successful due to our Management
philosophy. Features of this include total empowerment of its employee, decentralized decisionmaking process and freedom of action. Most of all, the Group views every employee as a
potential partner in business. Group Companies has also been instrumental in creating
innumerable indirect jobs in the communities they serve.
Nirmal Bang Securities Pvt Ltd. is the stock-Broking arm of the Rs. 7,500 crore (approx) Nirmal
Bang. With over 450 branches, 8000 employees (approx), 28 lakh investors, Nirmal Bang, with
evolved into a premier financial supermarket providing a host of services including stockbroking, distribution of investment products, properly, property development, industrial
investment, risk management, insurance products and consumer finance.
Human Resources:
Human resources is the key to any services sectors industry. We have a strong and vibrant
workforce in every field or our activity, be it research, system, accounts, marketing or
networking.
With the manpower strength of over 1100 employees, the Company is managed by a highly
motivated, qualified & talented team of professional qualified CAs, MBA,s, Engineers, etc with
proven track records.
Technology:
Stock-broking being a process intensive activity, issues such as speed, accuracy, round-the-clock
system availability and system securities are of paramount importance and technology forms the
backbones of the business.
This is why Nirmal Bang is technology driven. We boast of state-of-the-art technology and an inhouse team of highly competent software and networking engineers who constantly review
system and procedures to ensure operational efficiency.
All our branches are connected through Wide Area Network (WAN) and are served by a
centralized back office processing system, which enables clients to obtain up to date information
online at the click of a button.
Customer Focus:
Despite a rapidly expanding client base and a dizzying increase in transaction volumes, each
client at Nirmal Bang is special. We specialize in building long term relationship with our
customers by providing them with the four things they desire most, viz., speed,, convenience,
reliability and personalized services.
Our continuous strive to provide best services to our clients, results in receipt of not a single
Arbitration Award against the company since its inception.
A.
Nirmal Bang is the most comprehensive website, which allows you to invest in shares,
mutual funds, derivatives (Future and Option) and other financial products. Simply put,
we offer you products for every investment need of yours.
Trading in shares:
Cash trading:
This is a delivery based system, which is generally done with the information of taking
delivery of shares or monies.
Margin Trading:
You can also do an intra-settlement trading up to 3 to 4 times your available funds, where
in you take long buy/short sell position in stocks with in the intention of squaring off the
position within the same day settlement cycle.
In margin trading, you take buy/sell position in stocks(s) with the intention of acquiring
off the position within the same settlement cycle. If, during the course of the settlement
cycle, he price moves in your favor (rises in case you have a buy position or falls in case
you have a sell position), you make profit. In case you have the option to take/give
delivery of buy/sell position respectively if you have sufficient cash/securities to do so.
Normally to buy shares, you have to place (ensure availability of limit) 100% of the
order value, while to sell shares, you need to have shares in your Demat account.
However, margins are blocked only to safeguard any adverse price movement. At present,
you have to place 33.33% of the order value as margin. With margin trading, you can
leverage on your trading limit by taking buy/sell positions much more than what you
could have taken in cash segment. However, the risk profile of your transaction goes up.
Spot Trading:
This facility can be used only for selling you is demat stocks which already exist in
youre demat account. When you are looking at an immediate liquidity option, cash on
spot may work the best for you, on selling shares through cash on spot, money is
certified to your bank a/c the same evening & not on the exchange payout date.
BTST:
Buy today sell tomorrow (BTST) is a facility that allows you sell shares even on 1 st and
2nd day after the buying order date, without you having to Waite for the receipt of shares
into your demat account.
Call N Trade:
Call N Trade allow you call on a local number in your city & trade on the telephone
through our customer services Executive.
Trading in NSE/BSE: through Nirmal Bang you can trade on NSE and BSE.
Market order:
This is an order to buy sell securities at the best price obtainable in the market at the time
it is matched by the exchange. Therefore, change of its getting executed are better. In case
of market order for NSE, all market order placed which are not executive fully; it
becomes a limit order for the balance quantity at the last traded price.
Limit Order:
Limit Order is an order to buy or sell securities in which you specify the maximum price per unit
in case of a buy order and the minimum price per unit in case of sell order. The actual transaction
can be at a price more favorable than the price specified.
Allow you to place a buy/sell order at a price defined by you. The execution can happen at a
price more favorable than the price, which is defined by you, limit orders can be placed by you
during holidays & non market hours too.
2: Trade in derivatives:
Future:
Through Nirmal Bang you can now trade in index and stock futures on the NSE in future trading,
you take buy/sell position in index or stock (S) contract having a longer contract period of upto 3
month.
Trading in FUTURE is simple if, during the course of the contract life, the price moves in favor
(i.e. rises in case you have a by position or sell in case you have a sell position), you make a
perfect. Presently only selected stock, which meet the certain liquidity and volume, have been
enabled for future trading.
Calculate index and now your margin are tools to help you in calculating your margin
requirement and also the index & stock price movement.
Option:
An option is a contract, which gives buyer the right to buy or sell shares at a specific prices, on a
before a specific date. For this, the buyer has to pay to the seller some money, which is called
premium. There is now obligation on the buyer to complete the transaction if the price is not
favorable to him.
To take the buy/sell position on index/stock option, you have to place certain % of order value as
margin. With option trading, you can leverage on your trading limit buy taken buy/sell position
much more that what you could have taken in cash segment.
The buyer of a call option has the right but not the obligation to purchase the underlying asset at
the specified strike price buy paying a premium whereas the seller of the call has the obligation
of selling the underlying asset at the specified strike price.
The buyer of a put option as the right but not the obligation to sell the underlying asset at the
specified strike price paying a premium whereas the seller of the put has the obligation of buying
the underlying the asset at the specified price. Buy paying lesser amount of premium, you can
create position order option and take advantage of more trading opportunities.
Switch:
To suit your changing needs you may wish to shift monies between different schemes. You can
switch your monies online form one schemes to another in the some fund family without any
hassles.
3:
You can also invest in initial public offers (IPOs) and bonds online without going through the
hassles of filling any application form/paperwork.
Get in-depth analysis for new IPOs issue (initial public offering) which are about to hit the
market and analysis on these. IPO calendar, recent IPO listing, prospectus/offer document, and
IPO analysis are few of the features, which helps you keep, keep on talk of the IPO markets.
indexations, which reduce your capital gains, indexation benefits, is not available on debenture
and bonds. In case these securities are held as stock-in-trade i.e. if you are in the business of
buying and selling securities. The profit and loss from purchase and sell of securities will be
taxed under the head profit of gains of business or profession.
Q: what is the nature of income under which transaction in securities will be taxed?
Profit and loss from purchase and sales of securities will be taxed under the head of income
from capital gains, provided such securities are held as investment by you. In case these
securities a new held as stock-in-trade.i.e. If you are in the business of buying and selling
securities under the head profit or gains of business or profession.
Capital gain/loss:
Capital gain/loss means any profit or loss arising from transfer of a capital asset affected in the
previous year.
Capital Assets:
Capital asset means property of any kind held by an assesses, whether or not connected with his
business or profession, but does not include 1:stock-in-trade, 2: personal effect such as jewelers,
furniture, motor car held for personal use. 3: 61/2% Gold Bonds. 1980. 4: 7% Gold Bonds. 5:
National Defiance Gold Bonds 1999. 6. Gold deposit Bond under the gold deposit scheme,
1999 notified by the central government.
Transfer includes sale, exchanges or relinquishment of the asset of the extinguishment on any
right there in or compulsory acquisition thereof under any low. In a case where as asset is
converted by the owner or treated by him, is also treated as transfer. However, the following
specific transaction are not regarded as transfer e.g. (a) any distribution of capital assets on total
or partial partition of an HUF (a) any transfer of a capital under a gift or will or an irrevocable
trust expect share, debenture or warrants allotted to employee under approved EFOP scheme,
(b) Issue of share by resulting of amalgamated company in lieu of shares held in the demerged or
amalgamating company (providing in case of amalgamation, amalgamation company in Indian
company)
(c) any transfer by way of conversion of bonds or debentures of a company into shares or
debentures of that company in case of (a) and (b) above, if the resulting owner sells the capital
asst subsequently, the cost of acquisition shall be deemed to be the cost at which the capital asset
was acquire by the previous owner. In case of demerger, it shall be the portion of the cost which
bears to the total cost the same proportion as the net-book value of the assets transferred in the
demerged bears to the net worth of the demerged company immediately before demerged. The
cost of acquisition of the original shares would stand reduced correspondingly.
DEMAT SERVICES
Company offering
Dematerialization of shares
At you request we arrange to convert your physical holding into electronic from. To do this
would require to open an account with CDSL through us called Beneficiary Account in the
name and style in which the shares are held and lodge the share certificates with us accompanied
by a dematerialized request from, separate for each scrip.
You are required to only make sure that CDSL has admitted that scrip for dematerialization. An
upto date list will be provided to you which will be constantly updated.
Rematerialization
You have the option to convert your electronic shares back to physical shares.
Pledge-Hypothecation
You can also avail against your electronic shares. This process is also much faster than in the
case of physical shares.
HEAD OFFICE:-
38-b/39, Khatau building, 2 floor, Alkesh dinesh moby marg fort, Mumbai.
SMS BANG TO 54646
E-MAIL:free@nirmailbang.com
Contact at: 022-30272323
www.nirmalbang.com
MANADATORY DOCUMENT:-
1. PROOF FO IDENTITY (For individual /Karta / Sole proprietor / Authorized person (s) for
Partnership, corporate and Trust)
1. PROOF OF ADDRESS (For individual / Karta / Sole proprietor / Authorized person (s)
for Partnerships, Corporate and Trust)
Photocopy of any one of the following:
Passport, Voter ID Card, Driving license, Bank Passbook, Rent Agreement, Ration Card,
Current Telephone Bill, Current Electric Bill, Flat Maintenance Bill, and Certificate Issued
by employer registered under MAPIN, Insurance Policy.
Letter from clients banker certifying the account number and the period from which the
accounts in operation as per prescribed format.
Copy of a pas book / bank statement containing name of the client
Copy of current transaction statement / holding statement / certification by DP containing the
name of DP and client
4. FOR MINORS:
In additional to the abovementioned documents, the following documents would also be
required for minors.
I. Birth certificate of Minor.
I.
II.
III.
IV.
V.
VI.
VII.
Copy of the balance sheet for the last 2 financial years (copies of annual balance sheet to
be submitted every years)
Copy of latest share holding pattern including list of all those holding more than 5% in the
share capital of the company, duly certified by the company secretary/ whole time
Director/MD. (copy of updated shareholding patterns to be submitted every year)
Copies of the memorandum and articles of association in case of a company / body
corporate or partnership deed in case of a partnership firm
Copy of the Resolution of Board of Directors approving participation in equity /
derivatives/ debts trading and naming authorized persons for dealing in securities.
Photographs of partners/whole time directors, individual promoters holding 5% or more,
either directly or indirectly, in the shareholding of the company and of persons authorized
to deal in securities.
Net worth certified by Chartered accountant.
Declaration on letterhead of firm as per prescribed format for sole proprietorship and
partnership Firms.
1.
1.1
Of higher volatility:
Volatility refers to the dynamic changes in price that securities undergo when trading
activity continues on the Stock Exchanges. Generally, higher the volatility of a
security/contract, greater is its price swings.
There may be normally greater volatility in thinly traded securities/contracts than in active
securities/contracts. As a result
Of volatility, your order may only be partially executed or not executed at all.
Or the price at which your order got executed may be substantially different from the last
traded price or changes substantially thereafter, resulting in notional or real losses.
1.2
1.2 Buying/Selling without intention of giving and or taking delivery of a securities, as part of a
day trading strategy, may also result into losses, because in such a situation, stock may
have to be sold/purchased at a low/high prices, compared to the executed price levels, so
as not to have any obligation to delivery/receive a security.
1.3
1.4
Risk-reducing orders:
Most exchanges have a facility for investors to place limit orders, stop loss orders
etc. The placing of such orders (e.g., stop loss limit orders) which are intended to limit
losses to certain amount may not be effective many a time because rapid movement in
market conditions may make it impossible to execute such orders..
1.4.1
1.4.2
A limit order will be executed only at the time limit price specified for the order or a
better price. However, while the customer receives prices protection, there is a possibility
that the order may not be executed at all.
1.4.3
A stop loss order is generally placed away from the current price of a stock / contract,
and such order gets activated if and when stock/contract reaches, or trades through, the
stop price.
Sell stop order are entered ordinarily below the current price, and buy stop orders are
entered ordinarily above the current price. When the stock reaches the pre-determined
price, or trades through such price, the stop loss order convert to a market/limit order and
is executed at the limit order.
There is no assurance therefore that the limit order will be executable since a
stock/contract might penetrate the pre-determined price, in which case, the risk of such
order not getting executed arises, just as with a regular limit order.
a.7.2
a.8
system/network congestion:
Which may be beyond the control of and may result in delay in processing or not processing buy
or sell orders either in part or in full?
You are cautioned to note that although these problems may be temporary in nature, but when
you have outstanding open position or unexecuted orders, these represent a risk because of your
obligations to settle all executed transactions.
As far as Future and option segment is concerned, please note and get yourself acquainted with
the following additional features:-
a.9
The amount of margin is small relative to the value of the derivatives contracts so the
transactions are leveraged or geared. Derivatives trading, which is conducted with a relatively
small amount of margin, provides the possibility of great profit or loss in comparison with the
principal investment amount.
But transactions in derivatives carry a high degree of risk. You should therefore completely
understand the following segments before actually trading in derivatives trading and also trade
with caution while taking into account ones circumstances, financial resources, etc.
If the price moves against you, you may lose a part of our whole margin equivalent to the
principal investment amount in a relatively short period of time. Moreover, the loss may exceed
the original margin amount.
A. Future trading involves daily settlement of all positions. Every day the open positions are
marked to market based on closing level of the index has moved against you, you will be
required to deposit the amount of loss (national) resulting from such movement.
B. This margin will have to be paid within a stipulated time frame, generally before
commencement of trading next dat.
C. If you fail to deposit the additional margin by the deadline or if an outstanding debt
occurs in your account, the broker/member may liquidate a part of or the whole position
or substitute securities. In this case, you will be liable for any losses incurred due to such
close-outs.
D. Under certain market condition, an investor may find it difficult or impossible to execute
transactions. For example, this situation can occur due to factors such as illiquidity i.e.
when there are insufficient bids or offers or suspension of trading due to price limit or
circuit breakers etc.
E. In order to maintain market stability, the following steps may be adopted: changes in the
margin rate increase in the cash margin rate or others. These new measures may also be
applied to the existing open interests. In such conditions, you will be required to put up
additional margins or reduce your options.
F. You must ask your broker to provide the full details of the derivatives contracts you plan
to trade i.e. the contracts specifications and the associated obligations.
3. The exchange may impose exercise restrictions and have absolute authority to restrict the
exercise of option at certain times in specified circumstances.
From the trade date upto five trading days. Where trade on the websites, do not tally with the
detail mentioned in the contract note, immediately get in touch with the investors grievances cell
of NSE/BSE.
2.1.1 Ensure that payment/delivery of securities against is given to the concerned members
within one working day prior to the date of pay-in-announced by NSE/BSE or its clearing
corporation/clearing House.
Payments should be made only by account payee cheque in favors of the firm/company of the
trading members and a receipt or acknowledgement towards what such payment is made be
obtained from the member.
Delivery of securities is made to the pool account of the members rather than to the beneficiary
account of the members.
2.1.2 In case pay-out of money and /or securities is not received on the next working day after
date pay-out announced by NSE/BSE or its clearing corporation/clearing House.
Please follow-up with the concerned members for its release. In case pay-put is not released as
above from the members within five working days, ensure that you lodge a complaint
immediately with the investors Grievance cell of NSE/BSE.
2.1.3 Every member is required to send a complete statement of Accounts, for both funds and
securities settlement to each of its constituents, at such periodicity as may be prescribed by time
to time.
You should report errors, if any, in the statement immediately, but not later than 30 calendar days
of receipt thereof, to the members. In case the error is not rectified or there is a dispute, ensure
that you refer such matter to the investors Grievance cell of NSE/BSE, without delaying.
2.1.4 In case of a complaint against a members/registered sub-broker, you should address the
complaint to the office as may be specified by NSE/BSE from time to time.
2.1.5 In case where a member surrenders his membership, NSE/BSE gives a public notice
inviting claim, if any from investors. In case of a claim, relating to transaction executed on the
trading system of NSE/BSE, ensure that you lodge a claim with NSE/BSE/NSCCL clearing
House within the stipulated people and with the supporting documents.
2.1.6 In case where a member is expelled from trading membership or declared a defaulter,
NSE/BSE gives a public notice inviting claims, if any, from investors. In case of claim, relating
to transaction executed on the trading system of NSE/BSE, ensure that you lodge a claim with
NSE/BSE within the stipulated period and with the supporting documents.
2.1.7 Claims against a defaulter/expelled member found to be valid as prescribed in the relevant
Rules/Bye-laws and the scheme under the Investors Protection Fund (IPF) may be payable first
out of the amount vested in committee for settlement of claims against Defaulters, on pro-rata
basis if the amount is inadequate.
The balance amount of claims, if any, to a maximum amount of Rs.10 lakh per investors claim,
per defaulter/expelled members may be payable subject to such claims being found payable
under the scheme of the IPF.
3. GENERAL:
3.1 Commission and Other Charges
Before you begin to trade, you should obtain a clear explanation of all commission, fees and
other charges for which you will be liable. These charges will affect your net profit (if any) or
increase your loss.
3.2
You should familiarize yourself with the protections accorded to the money or other property
you deposit particularly in the event of a firm insolvency or bankruptcy.
The extent to which you may recover your money or property may be governed by specific
legislation or local rules. In some jurisdiction, property which has been specifically identifiable
as your as your own will be pro-rated in the same manner as cash for purpose of distribution in
the event of a shortfall.
In case of nay dispute with the member, the same shall be subject to arbitration as per the
byelaws/regulation of the exchange.
3.3
For right and obligation of the clients, please refer to Annexure-1 enclosed with this
document.
3.4
The terms constituent shall mean and include a client, a customer or an investor, who
deals with a members for the purpose of acquiring and/or selling of securities through the
mechanism provided by NSE/BSE.
3.5
The terms members shall mean and include a trading members, a broken or a stock
broker, who has been admitted as such by NSE/BSE and who holds a registration
certificates as a stock broker from SEBI.
b) Act of god, fir, flood, war, act of violence, or any other similar occurrence: or
c) Any incidental, special or consequential damages including without limitation of loss or
profit.
Part delivery of securities based on part payment will not be allowed. Any error in giving
the details regarding default DP account will be clients responsibility and he will not hold
SISBL responsible for any loss due to transfer of shares into the account as mentioned
above.
The instruction for delivery to client account will be issued within time schedule specified
by the concerned Exchanges, prevalent at the time. If the delivery could not be made on the
due date, due to nonpayment of dues from the client then the delivery will be made within
seven days of payment of the dues.
But, nonpayment for dues date may result in sale of such purchased securities at the cost and
penalty of the client. In case the securities are unpaid on the pay-out date, same will be
taken/transferred into the designated beneficiary account of SISBL to avoid SEBI pool
penalty charges.
current settlement then the shares purchased in earlier settlements, the receipt of the same may be
used to meet pay-in obligation for current settlement.
The clients are cautioned that execution of a purchase order does not guarantee delivery of share
which may fail in case of short delivery from the concerned Exchanges or the selling party.
In all such cases clients are required to take a clear confirmation from SISBL about the delivery
status of earlier purchases before proceeding with the sale of securities. SISBL will not be
responsible for any losses if a short delivery takes places due to such short receipt in the earlier
settlement.
C. Auction of securities:
If the client fails to make delivery of deliverable shares as per the pay-in schedule of
Exchanges then the securities will be auctioned as per the rules of the concerned exchanges or
as per Inter Auction rules mentioned in point 8, wherever is applicable.
Consequently client will be responsible for any resulting losses and all associated costs
including penalty as specified in point 10 a.
c) In case WAP is not available, then auction day high prices and trading day high prices
are compared with the highest purchaser price as mentioned in (b) above, and the
highest is taken as auction price.
It may be noted to the above auction price, a penalty @ 1.99% will be levied in pursuance to
clause 10(a) of the terms and conditions.
As started above, inter-client auction trades envisage debiting the client delivering short with the
auction amount and crediting the corresponding purchaser with the equal amount, no brokerage
being charged for a auction trades.
Hence debit/credit notes are issued for inter-client auction trades.
Auction contracts notes will not be issued for inter-client auction trades because they are not
trades in true sense of the term, but merely involves debiting and crediting the respective client
accounts.
10. Charges:
10. a. BROKERAGE, COMMISSION AND FEES:
i) The client agrees to pay the member brokerage, commission, fees, service tax and the other
taxes and transaction expenses as they exist from time to time and as they apply to the Clients
Account and transactions and to the services that the Members renders to the client.
The client also agrees that he member may deduct and appropriate any of the aforesaid amounts
from any amount payable by the members to the client.
ii) A schedule of the current brokerage, fees and commissions, applicable services and other
taxes and other transaction expenses shall be provided by the Member on the Members Web
site, and the client agrees to keep himself updated in respect thereof.
The client is aware that as per the RBI guidelines Non Resident Indians (NRIs) and persons of
Indian Origin (PIOs) are allowed to invest in the secondary capital markets in India through the
portfolio investment scheme (PIS).
These investments are governed and monitored on daily basis by the Reserve Bank of India. On
reaching the aggregate ceiling limit as fixed by RBI from time to time, the RBI advices all
designated bank branches to stop purchases on behalf of their NRIs/PIOs clients.
The clients hereby agrees to keep abreast of the ceiling limits on investments as published by
RBI and authorizes SISBL to reserve the transaction immediately on his behalf if such
transaction breaches the ceiling limit.
13. Severability:
In the event of nay provisions of this agreement being held to be or becoming invalid,
unenforceable or illegal for any reason, such invalidity, non-enforceability or illegality shall
attach only to such provision or condition and his agreement shall remain otherwise in full apart
from the said provision.
Which will be deemed deleted? The validity of the remaining provisions and conditions shall not
be affected thereby and this agreement shall be carried out as if any such invalid or
unenforceable provision or condition was not contained herein.
Without prejudice to the generality of the aforesaid, may suspend or terminated the
services without prior notice to the client if the client has breached any terms or
conditions.
Or if SISBL learns of the death, disability, bankruptcy or lack of legal capacity of the client, or where in
the perception of SISBL, the continuation of the services could increase the risk of SISBL.
6. Payment to client against sale of securities: (i.e. payout of funds) proceeds of the sale cannot be
paid to client until securities have been delivered to the concerned Exchanges Clearing House
and payout of fund is received from the concerned Exchanges.
This precautionary measure is taken by SISBL to avoid inconvenience sometimes caused due to
short delivery of shares. It is agreed by the client that he/she is aware of the different pay out
dates of different types of settlement cycles followed by the concerned Exchanges time
scheduled,, prevalent at the time.
The client agrees and authorized SISBL to act at its discretion of merging balances kept under
various account of different segments such as margin and settlement account of one
exchange/segment to nullify the debit in any other account of the client of another
exchange/segment held with SISBL without taking any further instruction from the client.
SISBL shall only make payment to client after adjusting the credit standing in his account in one
stock exchange with, if any, debit standing in his account under another exchanges.
7. Confirmations, statements, notices and other communications: the client are required to collect
the contract note within 24 hours from the office of SISBL and if it is not collected within 24
hours then it will be deemed as received and confirmed by the client.
Further SISBL reserves the right to send the uncollected contracts notes to the clients declared
address through U.C.P/ courier/any other means of post and the resultant postal charges will be
debited to the clients settlement account.
The client understand that it is their responsibility to review upon first receipt all confirmation,
settlement, notices and other communication contained therein and shall be binding upon the
client unless client do not object in writing within 24 hours of receiving such document(s).
7A. Issue of Digital Signed Contract Notes in Electronic Mode:
The client understand that contract note will be deemed to have been delivered and
acknowledged by the client when it is sent to e-mail id as specified by the client in the contract
details window of the KYC.
For this purpose record available in the electronic mode in back up of the approved software of
the trading members will be deemed to be conclusive evidence of the dispatch and confirmation
and no further proof will be required.
Further, the contract notes in electronic mode would be made available in the members website
in a secured way, which can be viewed by client by entering their respective password.
The client understands that all information contained therein shall be binding upon the client, if
the client does not objects in writing within 24 hours of the sending of the contract note in the
electronic mode by the broker.
Further, the client understands that such contracts being sent electronically will have Digital
Signature the term having the meaning as given in (i) www.sebi.gov.in, (ii) www.nseindia.com,
(iii) www.bseindia.com.
7B. wherever the ECNS have not been delivered to client or has been rejected (bouncing of
mails) by the e-mail ID if the client, SISBL shall send a physical contract note to the client
within the stipulated time under the extant regulations of SEBI/stock Exchanges and maintain
the proof of delivery of such physical contract note at the cost client.
Derivatives Segment:
15. Additional Terms & Conditions Governing Derivatives Segment
i.
ii.
Margin percentage may differ from stock to stock depending on the risk involved in the
stock which depends upon liquidity and volatility of the respective stock besides the
general market conditions. Margin percentage can be changed during the life of the
contract depending on the volatility in the market.
iii.
The client shall be required to pay an initial margin upfront on or before creating a
position in any derivatives contract and further the client should provide additional
margin money when called upon to do so as required in respect of position taken by him
in this segment SISBL has the right to reject orders if the required margin has not been
deposited.
iv.
The client shall pay the daily mark to market loss for all my/our position in index and
individual stock future contracts and pay the final settlement loss on expiry of the index
and individual stock futures contracts/index contracts as the case may be as charged by
NSCCL to SISBL by 9.00a.m. Next day.
v.
The client shall pay the daily premium payable for all my/our open positions in index
and individual stock options contracts as charged by NSCCL to SISBL before execution
of the contracts.
vi.
The client shall pay the interim as well as final exercise settlement value for all my/our
short position on individual stock options contract which has been assigned against him,
as charged by NSCCL o SISBL by end of next day.
vii.
SISBL is authorized to retain with them the MTM profit, daily premium receivable,
interim exercise settlement value receivable on futures and options contracts and settle
the same on monthly basis or on demand by the client after deducting dues, if any.
viii.
If the client have been are may become unable to meet, satisfy, discharge or fulfill any
obligation or liability or commitment or nay part thereof, then SISBL may at any time
thereafter and without giving any notice to the client can buy, sell or close out any part
or all of the future and option contracts held in his account with SISBL.
Any or all such incidental expenses incurred by SISBL in this regards will be reimbursed by the
client. If the clients after fulfilling his margin requirement fails to meet his/her uncrystallised
M2M loss either in part if full then the company will charge penalty at appropriate rate for
meeting the uncrystallised M2M pay-in on behalf of the client to the exchange.
ix.
If the client takes position in any securities that has entered the prohibited range (for
MWPL violation i.e. Market wise position limit violation) and a s a result of which any
penalty is imposed on SISBL by the concerned exchange, then the same will be liable to
be recovered from the client.
15a. Futures
i.)
Futures trading involves settlement of all positions. Every day the open positions are
marked to market based on the closing level of the index and the individual stock price. If
the index or the individual stock prices have moved against the client, he will be required
to deposit the amount of loss (national) resulting from such movements within the
stipulated time periods.
ii.)
iii.)
Brokerage- Any transaction entered into will attract brokerage which will be debited from
the clients account at the end of the day.
Profit & loss on squared off position.
Profit & loss on end of day (EOD) MTM on open position
Service tax on Brokerage, turnover Tax and securities Transaction Tax.
All future obligations are settled by the exchange on T+1 basis
15B. Options:
i.)
The following settlement obligations are to be full filled in the options segment Brokerage Any transaction entered into will attract brokerage which will be debited
from the clients account at the end of the day.
Premium payable
Or receivable
Profit on exercise
Loss on assignment
Service tax on Brokerage, turn over tax and securities Transaction Tax.
ii.) For options contracts in case a client has a sell position, the contract may be assigned to him i.e.
the underlying will have to be bought in case of PUT and sold in case of call. However
since options are currently cash settled, the client would have to pay or receive the money.
iii.) The assignment process in initiated and completely decided by the exchanges on a random basis.
Hence it is not necessary that the assignment will take place even if the position is in- the
money.
a) The client confirms that from time to time he would continue to read and understand the
exchange provisions and the terms and conditions in relation to electronic orders to be
placed through SSBLs Web Site.
b) The client will be entitled to a User Name, password or other identification or security code
(by whatever name called) which will enable him to enable him to access SISBLs system or
services through SISBLs web site for availing of the services.
c) The clients is aware that SISBLs system itself randomly generates the Initial password,
encrypts and passes on the password to the client, and that SISBL is not aware of the same.
The clients agree and understand to immediately change his initial password upon receipt
thereof. The client is aware that subsequent passwords also are not know or available to
SISBL.
d) The client shall lo off from the Nirmal Bang.com services at any time the client is not
accessing or using the Nirmal bang.com services and any liability incurred to the client as a
consequence to the client not logging off the services shall be borne solely by the client.
e)
f) The client shall be responsible for keeping the username and password confidential and
secure and shall be solely responsible for all orders entered and transactions done by any
person whosoever through SISBLs system using the clients username, and passwords
whether or not such persons was authorized to do so.
g) If the client is unable to change his password by reasons of his having forgotten his
passwords or his password or his password having been un authorized changed by some
other persons or for any other reasons then the client shall immediately request SISBL in
writing to discontinue his old password. SISBLs system shall generate a new password for
the client which shall be communicated to the client.
h) At no point in time shall SISBL be liable for any loss, whether national or actual, that may
be suffered by the client on account of the misuse of the password and the client shall be
liable and responsible for the same.
i) SISBL shall not be deemed to have received an order unless and until it has actually
received the order in the order-receiving module of SISBLs system. The client shall not be
entitled to presume that any order transmitted by the client has been received by SISBL until
SISBL ha confirmed receipt of such order. However, due to technical or other factors, an
order which has been received by SISBL may not be immediately confirmed to the client.
SISBL should not be held responsible for any incorrect information supplied by the client
during the time of registration. The client is thus requested to take adequate care in
providing correct details under all heads viz. bank account details, e-mail address etc.
In the registration form. Any subsequently change in the information provided by the client
should be intimated to SISBL by the client through written submission only. SISBL does not
operate through any sub broker or authorized person or franchise anywhere in India.
:-
on and subject to the terms and conditions of this Agreement, the exchange provision,
the terms of the Members Web Sites and the terms of the contract/contract note to be
issued by the Members to the client:
(i)
The members agrees to provide the Members Services to the Client, and
(ii)
2.3 The client is aware of and agrees that in the course of transaction on the Exchanges the
Member will be acting as an agent of the client, unless otherwise disclosed by the members
to the client.
2.4 The client hereby authorized the members to take all such steps on the clients behalf as
may be required or advisable in the members opinion for compliance with the exchanges
provision or any other law or provisions.
Or to complete or settle any transaction entered into through or with the members or
executed by the members on behalf of the client. However, nothing herein shall oblige the
members to take such steps.
2.5 Now with standing anything stated elsewhere in this agreement, the members may at any
time in its sole discretion, prohibit or restrict the clients access to the use of the members
Web Site or Services and the clients ability to trade, without any prior notice and without
assigning any reasons whats ever.
2.6 The members and the client shall be bounded by the provision of the exchange on which
the concerned transaction is affected.
3.7
The client shall immediately change his password. However, if the client is unable to
change his password by person of his having forgotten his password or his password
having been unauthorized changed by some other person. Or for any other reason than the
client shall immediately request the members in writing to discontinue his old password;
and thereupon the members shall cause the members system to discontinue the use of the
clients old password and the members system shall generate a new password for the client
which shall be communicated to the client. At no profit in time shall the members be liable
for any loss, whether notional or actual, that may be suffered by the client on account of the
misuse of the password and the client shall be liable and responsible for the same.
3.8
The client agrees that orders, instruction and other communication given or made over the
telephone may be recorded by the member. The client also agrees that such recording and
the members recorders of any orders, instruction and communications given or made by
the client or the member by electronic mail, fax or other electronic means shall be
admissible as evidence and shall be final and binding evidence of the same.
3.9
The client agrees to provide information relating to customers relating to customer user
identification and such other information as may be required while placing orders on the
telephone to determine the identity of the client.
II.
The client shall transmit his order to the members only in the following
manner:
The manner (if any) as the members may permit (including through branches that the
members may specify for this purpose)
Through the internet over the members website:
III.
Over telephone
IV.2
As a prediction for execution of a purchase order, the members may in its sole discretion:
i.
Required the client, at the time of order placement by the client, an available funds
balance in the clients account with the member for the full value of the order plus any
Brokerage, service tax, transaction charges, associated costs and such mark-up as the
members any determine: and/or
ii.
Require the amount of margin prescribed by the members to be available in the clients
margin account if nay, with the members;
IV.3
As a prediction for execution of a sale order, the members may in its sole discretion:
i.
Require the client, at the time of order placement by the client to maintain an available
stock balance in the members own depository account, and also maintain funds required
for margin, if any, determined by the members in the clients account with the members;
and/or
ii.
Require the amount of cash margin prescribed by the members to be available in the
clients margin account, if, any, with the members.
IV.4
The members shall be entitled to offset the purchase price of a purchase order/transaction
against the proceeds of a sale transaction executed by the client through the member, and
vice versa.
Unless the members otherwise determines, all orders for purchase, sale or other dealings
in securities and other instruction routed through the members system via clients
username shall be deemed to have been given by the client.
IV.5
IV.6
The member shall not be deemed to have received an order unless and until it has actually
received the order in the order receiving module of the members system.
The client shall not be entitled to presume that any order transmitted by the client has been
received by the member until the member has confirmed receipt of such order.
However, due to technical or other factors, an order which has been received by the
members may not be immediately confirmed to the client. Such client in confirmation
shall not entitle the client to presume that eh order has not been received by the members
and the principle mentioned in the first sentence of this clause shall apply.
IV.7
IV.8
All order received by the member through the system may be executed in good faith and
shall be valid until separately cancelled in accordance with the provisions of this
agreement.
IV.9
The client agrees to ensure that all orders and instructions which the member receives
from the client are absolutely clear and unambiguous; and the client agrees that if any
instruction or orders or any details therefore are not absolutely clear and unambiguous,
the member, its employee or authorized representative shall be entitled to interpret the
same as per its/his understanding and such understanding and interpretation shall be
treated as final.
IV.10 The members may from time to time in its discretion impose and vary limits on the
order and trades which the client can be place and enter into through the members
system (including exposure limits, turnover limits, limits as to the number, value and/or
kind of securities in respect of which orders can be placed, the companies in respect of
whose securities orders can be placed, etc.).
The members may choose not to intimate the client of the limits and any variation
thereof. The client is aware and agrees that he members may need to urgently vary the
limit or impose new limits or prohibit or restricts the clients ability to place orders or
trade in securities through the members on the basis of the members risk perception
and other factors considered relevant by the members, and the members may not inform
the client of the same.
The client agrees that the members shall not be responsible of liable for the clients
inability to place any order or enter into any transaction on account of nay such
variation, imposition, restriction or prohibition.
IV.11 The members shall have the right to refuse to accept the whole or a part of any orders or
instruction from the client and/or refuse to execute the whole or a part of any accepted
orders or instruction without providing any reasons therefore.
In particular, the members may refuse to accept or execute the whole or a part of any order or
instruction:I.
II.
5. CONFIRMATIONS:
5.1 The client shall bring any errors or other discrepancy in any report, account, confirmation or
contracts note of executed trades (including execution prices, scrips or quantities) to the
members notice in writing, via electronic mail or fax.
Within 24 hours from the time of receipt of the first notice. In all causes, the members shall have
the right to accept or reject the clients objection.
5.2 There may be a delay in the members receiving the reports of transaction status from the
Exchanges. Accordingly, the members may forward to the client late reports in respect of such
transaction that were previously unreported to him.
Or were incorrectly reported to him as being expired, cancelled, or executed. The client shall not
hold the members responsible for nay losses suffered by the clients on account of nay late
reports/statements or nay errors in reports/statements computed by or received from the
exchanges.
6.2 The client shall abide by the exchange provisions and the terms of the members Website in
force from time to time.
6.3 Any instruction given by an authorized representative of the client to the members (or to the
members representative) shall be binding on the client.
8. OTHER DATA:
8.1
The client understand that the exchanges and any other suppliers of data asserts a
proprietary interest in all of the market and other data it furnishes, directly, through the
members or otherwise.
The client understands that the Exchanges, such suppliers and the members do not
guarantee the timeliness, sequence, accuracy or completeness of the data or nay other
information, or any messages disseminated by it.
Neither the members nor the Exchanges nor such suppliers shall be liable in any way for
incorrect, misleading, incomplete or out-dated data ro information and, if the client acts on
the same, he shall do so at his own risk and cost.
8.2
The client shall not furnish market information provided by the Exchange or the
members to any other persons or entire for consideration or otherwise and in the event
the client uses such information he shall do so at his own risk and cost.
8.3
The client is authorized to use, at the clients risk, materials which are made available
by the members services for the clients own need only, and the client is not
authorized to resell or permit access to any such material or to make copies of any
such materials for sale or supply to or use by others. The client will not delete
copyright or other intellectual property rights notices from any such materials.
9. REEMBURSEMENT:
9.1 The members does not warrant that the service will be uninterrupted or error free. The
members service is provided without warranties of any kind, either express or implied,
including, without limitation, those of uninterrupted availability, merchantability or fitness for a
particular purpose.
9.2 The client agrees that under no circumstances, including negligence, shall the members
services or system be liable for any direct, indirect, incidental, special
Or consequential damages including, but not limited to lost profit, trading losses, loss of
opportunity or damages that result from interruption, delay or loss of the use of the services or
out of any breach of any warranty even if the members has been advised of the possibility of
such damages.
9.3 The client agrees to reimburse to the members any and all claims, liability, costs, and
expenses (including but not limited to lawyers fees and penalties or cost imposed by any
Exchange0 and proceedings arising from or in relation to the clients breach of nay provision of
this agreement or nay third partys right arising out of the services rendered by the members
pursuant to this agreement or any other wrongful act on the part of the client.
9.4 Certain securities any grant the holder thereof valuable rights that may expire unless the
holder takes action. The client shall be responsible for knowing the rights and terms of all
securities in his accounts and the members shall not be obligations to notify the client of nay
upcoming expirations or redemption dates.
Or take any other action on the Clients behalf, except as required by law and applicable
Exchanges provision. The client shall also be responsible for knowing about organizations
related to securities, which the client holds including, but not limited to, stock splits.
If, due to a reorganization or book keeping or data entry error, the client sells more securities
than he actually owns or different securities from what he actually owns, then the members shall
not be responsible for any losses the client may incur by reason thereof.
9.5 The members shall not be liable for any error or delay in, or omission from, any data,
information, or message on the members on the members Websites; or
(ii) Delayed, interrupted or improper transmission or delivery of nay data, information or
message; or nay loss or damage arising from or occasioned by the above.
10 NOTICES:
10.1 Any notices or other communication to be given by any part to the other in connection with
this agreement shall be in writing and shall be deemed duly served if delivered personally or
sent by facsimile transmission or by prepaid registered post or by e-mail to the addressee at the
address or (as the case may be), the e-mail or facsimile number (if any), of that party set
opposite its name below.
HEAD OFFICE:38-B/39, khatau building, 2nd floor, Alkesh dinesh moby marg fort,
Mumbai.
SMS BANG TO 54646
E-MAIL: free@nirmalbang.com
Contact at: 022-30272323
www.nirmalbang.com
To the client: (at the address, fax number or e-mail address stated in the schedule); or at such
other address, facsimile number or email address as the party to be served may have notified the
other in accordance with the provision of this clause.
10.2
11. ASSIGNMENT:
The client shall not assign any right and obligation here under without obtaining
the members prior written consent.
12. WAIVER:
12.1 No forbearance, relaxation or inaction by any party at any time to require the performance
of any provision of this agreement shall in any way affect \, diminish, or prejudice the right of
such party to require the performance of that .
Or any other provision of this agreement or be considered to be a waiver of any right, unless
specially agreed in writing.
Except as specially permitted in his agreement, no provision of this agreement can be, nor be
deemed to be, waived, altered, modified or amended unless agreed to in writing and signed by an
unauthorized officer of the member.
No waiver of any single breach or default under this agreement shall be deemed a waiver of any
other breach or default.
8) Dont blindly imitate investment decisions of others who may have profited from their
investment decisions.
9) Dont share any sort of trading related password with anybody else.
10) Dont overwrite, misspell any data or not to provide any wrong information when you fillup your KYC.
11) Dont meet your PAY-IN through CASH or dont issue any cheque in favors of any
employee of Nirmal Bang security PVT Ltd. always issue cheque in favor of Nirmal Bang
security PVT Ltd.
12) Dont participate in any synchronization Trade.
13) Dont hand over signed delivery instruction slip (DIS) or cheques or any other documents to
any persons including staff of Nirmal Bang securities PVT ltd.
14) Nirmal Bang securities PVT Ltd., will not held responsible for nay financial loss arising
from violation of the said instruction.
15) Avoid off-market transaction of securities especially to third party.
16) POA is not compulsory for execution of PAY-IN.
17) Dont forget to cheque or scrutinize your Transaction details and holding statements
received by you on a regular interval. In case of any unauthorized transaction, inform your
DP.
PLEASE
DOS
1) Know your risk: it is critical to understand where you stand and where you want to be,
what level and amount to investment are you comfortable with, regardless of what market
experts tell you.
Therefore, take some time to evaluate your risk-bearing capacity. This is a golden rule that
should be applied at all times.
2) Always deal with the market intermediaries registered with the securities and Exchanges
Board of India (SEBI)/stock exchanges. Know the rules regulation, byelaws and circulars
issued by stock exchanges/SEBI before investing in this market.
3) Please carry out due diligence before registering as client with any intermediary. Further,
investors and requested to carefully read and understand the contents stated in the risk
Discloser document, Members-client agreement which from part of investors registration
for dealing through brokers in the stock market.
4) Before signing please read and understand all the point of KYCS
5) Always update your correspondent address, bank account details.
6) Give clear and unambiguous instruction to your broker/agent/depository participants
7) You will be sole responsible for your internet password; hence do not share your login ID
& password with anybody, since all the transaction will be deemed to be done by you only.
8) Always insist on duly signed contracts notes from your brokers. In case of doubt of the
transactions, verify the genuineness of the same on the exchanges website:
http://www.bseindia.com, http://www.nseindia.com
9) Check all the related information like trade details, electronic contract note, margin call, etc
in your email ID as discloser by you in KYC.
10) Always pay your margin call in Future & option segment and maintain required margin in
cash segment. In case of any shortfall or inadequate margin in your account, Nirmal Bang
security PVT Ltd, would have the discretion to square off the position of the client.
11) Always collect money receipt from the broker after every payment.
12) Always settle the through the normal banking channels with the market intermediaries.
13) Settle your dues on any payment to the brokers would be from your declared bank account
only.
14) Investors should ensure delivery of due securities/payments of money to the broker
immediately upon getting the contract note for sale/purchase and in any case, before the
prescribed pay-in day.
15) Be cautious about stocks,, which show a sudden spurt in price or trading activity, especially
low price stocks.
16) Please be informed that there are no guaranteed returns on investment in stock markets.
17) You should read and understand the utility of power of attorney (POA) for meeting the payin before signing the same.
18) Please note that DI slip is like a cheque book keeps it under safe custody.
19) Any correction, overwriting, cancellation on the instruction slip made should be countered
signed by you.
20) Please be aware at the time of writing the ISIN, quantity, spelling of the scrip/scrip on
delivery instruction slip (DIS) correctly.
21) Joint holder of demat account should sign jointly on delivery instruction slip (DIS).
22) Please strike out the unused blank places of multiple instructions on the delivery instruction
slip (DIS) at the time of delivery DI slip to any personnel.
23) Check the delivery instruction slip (DIS) numbers are pre-printed and your account number
(BOID) is pre-stamped.
24) To open and operate your demat account, copy of PAN card of all account holders is to be
submitted to the DP along with original PAN card, for verification.
25) The demat account has a nomination facility and it is advisable to appoint a nominee to
facilitate youre your heirs in obtaining the securities in your demat account, on completion
of the necessary procedures.
26) In case of sale of shares, the delivery of shares has to be done prior to the pay in sate for the
relevant settlement and issues DIS from your own DEMAT account.
27) In order to receive all the credit coming to your demat account automatically, you can give
one-time, standing instruction to your DP.
28) Registered for CDSLS SMART (SMS Alerts related to Transactions) facility. If any
unauthorized debit is noticed, the BOND should immediately in for CDSL and the Main
DP in writing. An email may be sent CDSL at. complaints@cdslindia.com
29) Registered for CDSLs internet based facility easl to monitor your demat account
yourself. Contacts your DP or visit CDSLs websites: www.cdslindia.com for details.
30) If you have any quarries or have any confusion please contacts our helpdesk
helpdesk@nrimalbang.com phone no. (0522-3060071-079)
Disclaimer:
The above information has been assembled and after compilation presented with a general idea
of the subject for the investor. This is not containing or interprets any Acts, circulars, rules,
regulation and guidelines.
All these points are neither part of advertisement of solicitation nor a legal advice from Nirmal
Bang securities PVT Ltd. the investors should invest in this segment after proper knowledge or
guidance from a qualified professional.
This is not a message for improvement of broker client relationship. Any action you choose to
take in the market is totally your own responsibility. The broker will not be liable for any, direct,
consequential or incidental damages or loss arising out of the use of this information.
This information is neither an offer to sell on solicitation to buy of the securities from the market.
I hereby confirm having read and understood the above mentioned matters.
Undersigned.
RESEACRH METHODOLOGY
The research specifies the information required to address needed issues, designs the methods for
collecting information, manages and implements the data collection process analyzes and
communicates the finding and their implications.
The research methodology implemented in this research repot primarily consists of personal
interviews with those very investors in Lucknow city who invest through the life insurance
companies in Lucknow cities.
Research objectives:
To understand and analyze the market strategies of Nirmal Bang.
To understand and analyze online trading at Nirmal Bang.
To improve the format of DSR (Daily Sales Report).
To get the Demat account opened of potential customers in favor of Shriram insight.
Analysis of need and specialization of distribution of financial services.
To give a brief idea about the benefits available from Mutual Funds investment.
To give an idea of the types of schemes available.
To discuss about the market trends of Mutual Funds investment.
To study some of the mutual fund schemes and analyze them observe the fund
management process of mutual funds.
Explore the recent development in the mutual in India.
To give an idea about the regulation of Mutual Funds.
Primary Data was collected with the help of interviews conducted to the general public, to those
only in Lucknow city who invest in Life insurance by the help of a Life Insurance firm. I asked
them about their Life insurance firms and tried to know that whether they are satisfied with it or
not.
Secondary Data was collected from the firms database to know how many customers is there in
a particular in life Insurance Company the Lucknow city. Since the name, addresses and contract
number of the customers were not available in the internet, therefore an attempt was made to
know all these details from the Life Insurance itself.
Personal Interviews:
Personal interviews were taken only from those people in the Lucky now city who invests in
securities through Life Insurance Companies they were asked questions related to this research
work and that mentions in questionnaire.
During my project analysis I was very keen to find some keys areas which need to be taken care
seriously in the future these are causing dissatisfaction among distributors.
Most of distributors felt dissatisfaction with their brokers but some of the disappointing areas
are-
1. More exposure: Most of distributors want some more exposure for them clients from
their share broking companies. Nirmal Bang is now providing super exposure p to 15 of
the margin (cash segment) the step like this really creates satisfaction for the distributors.
2. Brokerage problem: Some companies have very high brokerage chares which create
differences of market share of different companies and also dissatisfaction among
distributors.
3. Fewer offers: Most of companies lag behind in giving time to time offers in order to
attract new customers.
All risks should be communicated by distributors of financial servicesIt is very important for distributors to make the customers aware about all the risks
involved and he could not blame for any loss to the company.
4. Misconceptions- There are many misconceptions in the mind of common people that
Mutual funds, online share trading etc. are only for big ones & they cant enter in this
field and if they will enter they will suffer losses so, by giving example of active
investors various misconceptions should be removed.
5. Simple procedure-many potential investors are computer illiterate so they never try
their hand free.
6. Target rural areas also- many potential investors are also trust in rural areas. They
come to cities (like in Lucknow) for various works. There should some special offers to
attract them in share trading.
7. Employees should be trained- It is very necessary for the employees to give an
effective demo to the client about the use of various services of share broking etc. many
times they fail to make the offer understandable to the client, this is the drawback to be
overcome.
8. Some offers for women should be introduced to get a new share of market.
LIMITATIONS:
The study of limited to the different schemes available under the mutual funds selected.
BIBLIOGRAPHY:
www.nirmalbang.com
www.hseindia.com
www.sharekhan.com
www.google.com
From Wikipedia, the free encyclopedia