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Forex Market





In terms of a commodity, foreign exchange, or Forex, broadly refers to the currencies issued by

the countries of the world. The relative value of a given currency against that of another forms

the basis for the exchange of one currency for another. The price at which this exchange occurs

is called an exchange rate. This exchange occurs via currency broker-dealers in the global

foreign exchange market.


As opposed to a single trading location, the foreign exchange market is virtually accessible

through the World Wide Web or physically accessible at banks and money change kiosks in

airports and urban settings. However accessible, the assisting currency broker-dealers offer to

buy and sell a range of commonly-traded currencies (e.g., U.S. dollars, U.K. pounds, euros,

Japanese yen) at exchange rates which conform to a world-wide average.

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Forex Market


The foreign exchange market (forex, FX, or currency market) is a global, worldwide

decentralized financial market for trading currencies. Financial centers around the world function

as anchors of trading between a wide range of different types of buyers and sellers around the

clock, with the exception of weekends. The foreign exchange market determines the relative

values of different currencies.

The primary purpose of the foreign exchange is to assist international trade and investment, by

allowing businesses to convert one currency to another currency.

In a typical foreign exchange transaction, a party purchases a quantity of one currency by paying

a quantity of another currency. The modern foreign exchange market began forming during the

1970s after three decades of government restrictions on foreign exchange transactions (the

Bretton Woods system of monetary management established the rules for commercial and

financial relations among the world's major industrial states after World War II), when countries

gradually switched to floating exchange rates from the previous exchange rate regime, which

remained fixed as per the Bretton Woods system.

Liberalization has radically changed Indias foreign exchange sector. Indeed the liberalization

process itself was sparked by a severe Balance of Payments and foreign exchange crisis.

Since 1991, the rigid, four-decade old, fixed exchange rate system replete with severe import and

foreign exchange controls and a thriving black market is being replaced with a less regulated,

market driven arrangement. While the rupee is still far from being fully floating (many

studies indicate that the effective pegging is no less marked after the reforms than before), the

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Forex Market

nature of intervention and range of independence tolerated have both undergone significant

changes. With an overabundance of foreign exchange reserves, imports are no longer viewed

with fear and skepticism.

The Reserve Bank of India and its allies now intervene occasionally in the foreign exchange

markets not always to support the rupee but often to avoid an appreciation in its value. Full

convertibility of the rupee is clearly visible in the horizon. The effects of these development s are

palpable in the explosive growth in the foreign exchange market in India.


Its huge trading volume representing the largest asset class in the world leading to high


Its geographical dispersion;

Its continuous operation: 24 hours a day except weekends, i.e. trading from 20:15 GMT

on Sunday until 22:00 GMT Friday;

The variety of factors that affect exchange rates;

The low margins of relative profit compared with other markets of fixed income; and

The use of leverage to enhance profit and loss margins and with respect to account size.

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Forex Market


Early Stages: 1947-1977:

The evolution of Indias foreign exchange market may be viewed in line with the shifts in Indias

exchange rate policies over the last few decades from a par value system to a basket-peg and

further to a managed float exchange rate system. During the period from 1947 to 1971, India

followed the par value system of exchange rate. Initially the rupees external par value was fixed

at 4.15 grains of fine gold. The Reserve Bank maintained the par value of the rupee within the

permitted margin of 1 per cent using

pound sterling as the intervention currency. Since the sterling-dollar exchange rate was kept

stable by the US monetary authority, the exchange rates of rupee in terms of gold as well as the

dollar and other currencies were indirectly kept stable. The devaluation of rupee in September

1949 and June 1966 in terms of gold resulted in the reduction of the par value of rupee in terms

of gold to 2.88 and 1.83 grains of fine gold, respectively. The exchange rate of the rupee

remained unchanged between 1966 and 1971.

Formative Period: 1978-19926:

The impetus to trading in the foreign exchange market in India came in 1978 when banks in

India were allowed by the Reserve Bank to undertake intra-day trading in foreign exchange and

were required to comply with the stipulation of maintaining square or near square position

only at the close of business hours each day. The extent of position which could be left

uncovered overnight (the open position) as well as the limits up to which dealers could trade

during the day were to be decided by the management of banks. The exchange rate of the rupee

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Forex Market

during this period was officially determined by the Reserve Bank in terms of a weighted basket

of currencies of Indias major trading partners and the exchange rate regime was characterised by

daily announcement by the Reserve Bank of its buying and selling rates to the Authorised

Dealers (ADs) for undertaking merchant transactions. The spread between the buying and the

selling rates was 0.5 per cent and the market began to trade actively within this range. ADs were

also permitted to trade in cross currencies (one convertible foreign currency versus another).

However, no position in this regard could originate in overseas markets.

As opportunities to make profits began to emerge, major banks in India started quoting two way

prices against the rupee as well as in cross currencies and, gradually, trading volumes began to

increase. The foreign exchange market in India till the early 1990s, however, remained highly

regulated with restrictions on external transactions, barriers to entry, low liquidity and high

transaction costs. The exchange rate during this period was managed mainly for facilitating

Indias imports. The strict control on foreign exchange transactions through the Foreign

Exchange Regulations Act (FERA) had resulted in one of the largest and most efficient parallel

markets for foreign exchange in the world, i.e., the hawala (unofficial) market.

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Forex Market



Institutional Framework:

The Foreign Exchange Regulation Act (FERA), 1973 was replaced by the market friendly

Foreign Exchange Management Act (FEMA), 1999.

Liberalisation Measures:

o Authorised dealers were permitted to initiate trading positions, borrow and invest in

overseas market.

o Participants in the foreign exchange market, including exporters, Indians investing

abroad, and FIIs were permitted to avail forward cover and enter into swap

transactions without any limit, subject to genuine underlying exposure.

o FIIs and NRIs were permitted to trade in exchange traded derivative contracts, subject

to certain conditions.

o Foreign exchange earners were permitted to maintain foreign currency accounts.

Disclosure and Transparency Initiatives:

The Reserve Bank has been taking initiatives in putting in public domain all data relating to

foreign exchange market transactions and operations.

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Forex Market


The Bretton Woods system of monetary management established the rules for commercial and

financial relations among the world's major industrial states in the mid 20th century.

Preparing to rebuild the international economic system as World War II was still raging, 730

delegates from all 44 Allied nations gathered at the Mount Washington Hotel in Bretton Woods,

New Hampshire, United States, for the United Nations Monetary and Financial Conference. The

delegates deliberated upon and signed the Bretton Woods Agreements during the first three

weeks of July 1944.

Setting up a system of rules, institutions, and procedures to regulate the international monetary

system, the planners at Bretton Woods established the International Monetary Fund (IMF) and

the International Bank for Reconstruction and Development (IBRD), which today is part of the

World Bank Group. .


Imbalances in international trade were theoretically rectified automatically by the gold standard.

A country with a deficit would have depleted gold reserves and would thus have to reduce its

money supply. The resulting fall in demand would reduce imports and the lowering of prices

would boost exports; thus the deficit would be rectified.

The only currency strong enough to meet the rising demands for international currency

transactions was the U.S. dollar. The strength of the U.S. economy, the fixed relationship of the

dollar to gold ($35 an ounce), and the commitment of the U.S. government to convert dollars

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Forex Market

into gold at that price made the dollar as good as gold. In fact, the dollar was even better than

gold: it earned interest and it was more flexible than gold.

which is a whole number of weeks or months after the spot value date (for example, one month).

The specific date is then fixed according to one of two conventions.


1. Exchange Rates:

The Forex market lists exchange rates between currencies. Forex is a global, decentralized

market with many different participants and high liquidity. Exchange rates constantly shift as

market participants buy and sell currency in the Forex market.

2. Interbank Market:

The interbank market is a group of large banking institutions that constantly trade currencies

with each other. These banks are the major players in Forex. The trading conducted in the

interbank market sets the exchange rates that get passed on to the other Forex participants.

3. Retail Brokers:

Retail brokers derive rates based on the interbank exchange rates. Forex brokers are a much

smaller segment of Forex than the interbank market and, therefore, retail brokers simply pass on

rates to customers. This process is similar to the way in which any other retail institution buys a

product or service in the wholesale market and then passes it on to customers in the retail market.

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Forex Market

4. The Spread:

Retail brokers profit from the spread, which is the difference between the rate at which someone

may buy or sell a currency pair. There are two primary methods retail brokers use to implement

the spread. When offering a fixed spread, the broker widens the spread they receive from the

interbank market and profits from the difference. Alternatively, a broker may offer a variable

spread that contracts or expands based on market volatility.


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Forex Market




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Forex Market



The Indian foreign exchange market has witnessed far reaching changes since the early 1990s

following the phased transition from a pegged exchange rate regime to a market determined

exchange rate regime in 1993 and the subsequent adoption of current account convertibility in

1994 and substantial liberalisation of capital account transactions. Market participants have also

been provided with greater flexibility to undertake foreign exchange operations and manage their

risks. This has been facilitated through simplification of procedures and availability of several

new instruments.

Various organised research studies have been conducted in the field. Many of these studies focus

upon either Foreign Exchange Reserves or Relationship of Forex Market with Stock Market.

Some of them are as follows:

Literature on Relationship Between FOREX Market and Stock Market

The happenings in a countrys foreign exchange market have an impact on its trade and

investment. A stable exchange rate, for instance, would have positive effects on household

incomes and consumption; firms investment, import and employment decisions; governments

fiscal, debt and monetary policies; and trade balance (Adjasi, Harvey & Agyapong ,2008;

Dornbusch & Fischer, 1980 and Gavin, 1989).

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Forex Market

In the bid to manage the foreign exchange rate, policymakers and successive governments have

undertaken several policy interventions before and after the economic recovery programme.

Ghana operated a fixed exchange rate system prior to economic reforms in 1983. But this led to a

highly overvalued official exchange rate system, and brought about shortage of foreign currency,

raw material inputs which had a negative effect in the area of productivity by industries (Obeng

et al, 2006) and invariably this affected firm value and stock market activities.

As a strategy to curb the problem encountered in the fixed exchange rate regime, the country

devalued the currency under a floating exchange rate in the framework of an auction market, and

finally adopted flexible exchange rate system. According to Obeng et al (2006), the devaluation

led to an increase in international trade, improved balance of payment considerably as imports

became expensive and exports cheaper. This had implications for the level of productivity of

companies producing for domestic consumption and or for exports.

The understanding of the behaviour and the association of these two markets is of great

importance to the work of financial markets and analysts. Dimintrova (2005) points out that the

knowledge about these markets has both fiscal and monetary policy implications. A booming

stock market has a positive effect on aggregate demand. If this is large enough, expansionary

monetary or contractionary fiscal policies that target the interest rate and the real exchange rate

will be neutralized (Gavin, 1989). Sometimes policy-makers advocate less expensive currency in

order to boost the export sector. But in doing this, there is the need to consider if such a policy

might depress the stock market. Second, the link between the two markets may be used to predict

the path of the exchange rate. This will benefit multinational corporations in managing their

exposure to foreign contracts and exchange rate risk, and hence, their ability in stabilizing their

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Forex Market

earnings. Third, currency is more often being included as an asset in investment funds

portfolios. Knowledge about the link between currency rates and other assets in a portfolio is

vital for the performance of the fund. Finally, it helps foresee a crisis. The link between the stock

and currency markets helped propagate the Asian Financial Crisis in 1997 (Khalid & Kawai,

2003; Ito & Yuko, 2004).

Theoretical relationship between the stock market and the foreign exchange markets stem from

two perspectives. The first is analysed from the Flow-Oriented model (Dornbusch & Fischer,

1980 and Gavin, 1989) in which exchange rate movement affects output levels of firms and

also the trade balance of an economy. Share price movements on the stock market also affect

aggregate demand through wealth, liquidity effects and indirectly the

exchange rate. Specifically a reduction in stock prices reduces wealth of local investors and

further reduces liquidity in the economy. The reduction in liquidity also reduces interest rates

which in turn induce capital outflows and in turn causes currency depreciation. The second

perspective is the Stock-Oriented model (Branson, 1983 and Frankel, 1983). In the case of the

Stock-Oriented model the stock market exchange rate link is explained through a countrys

capital accounts. In this model the exchange rate equates demand and supply for assets (bonds

and stocks). Therefore expectations of relative currency movements have a significant impact on

price movements of financially held assets. Thus stock price movements may influence or be

influenced by exchange rate movements. Hence, the portfolio balance approach to exchange rate

determination (Frenkel, 1993) asserts that a rising share market would attract capital inflows

leading to increases in the demand for and appreciation of the home currency. In effect, the

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Forex Market

portfolio balance approach posits that the direction of causality runs from share prices to

exchange rates. For instance, if the Ghana cedi depreciates against one of its major trading

foreign currency (the British pound), exports from Ghana will look cheaper on the British

markets, and companies exporting to this market are likely to increase returns on exports (Adjasi

et al, 2008). On one hand, this has the tendency of improving corporate performance and

eventually stock market performance. On the other hand, such situation would make the pound

an option in terms of currency commodity trade. Such events will motivate investors to move

funds from domestic assets (stocks) towards pound assets, depressing stock prices. Thus a

depreciating currency has a negative impact on stock market returns (Adjasi & Biekpe, 2005).

Tabak (2006) showed that stock prices lead exchange rates with a negative relationship.

Kutty (2010) cites yet another theoretical argument in the relationship between stock prices and

exchange rates is the portfolio adjustment approach. According to this theory, portfolio

adjustments [movements in the foreign capital- inflows and outflows of foreign capital] occur

whenever there is a change in the stock prices. If stock prices are on the increase, they will attract

more foreign capital. However, a decline in the stock prices will result in diminished corporate

wealth leading to the reduction in the countrys wealth. This may lead to a fall in the demand for

money and monetary authorities reduce the interest rates to alleviate this situation. When interest

rates are lower (relatively speaking), capital may flow out of the country to take advantage of

higher interest rates in other part of the world resulting in currency depreciation. Therefore,

according to this theory, lower stock prices may lead to currency depreciation.

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Forex Market

There is yet another model of stock market and the foreign exchange markets relationship, the

monetary models (Gavin, 1989). This model concludes that there is no linkage between

exchange rates and stock prices except that both variables are influenced by some common

factors. Therefore the theoretical foundation of the relationship between the two markets is

inconclusive. This then leave a room for empirical investigation and consensus.

In economic analysis it is suggested that firm value is related to exchange rate movements.

Shapiro (1975) predicted an increase in the value of home countrys firm with a depreciation of

home countrys currency. Adler and Dumas (1984) stated that even firms, which operate in

domestic markets, might be affected by exchange rate movements.

Additionally, recent happening in the financial assets market have led to the development of an

asset market model. The asset market approach views currencies as asset prices traded in an

efficient financial market. Consequently, currencies are increasingly demonstrating a strong

correlation with other markets, particularly equities. Like the stock exchange, money can be

made or lost on the foreign exchange market by investors and speculators buying and selling at

the right times. Currencies can be traded at spot and foreign exchange options markets. The spot

market represents current exchange rates, whereas options are derivatives of exchange rates

( rate). Internationalisation and its attendant cross border

listing, cross border investment in foreign equities have created a link between stock and foreign

exchange markets. Another core issue considered in the theory about the relationship between

exchange rate and return is risk and crises - the basics of financial crisis (Solnik, 2000). It has

been observed that periodically, financial crises rock the exchange rate, interest rate, and stock

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Forex Market

prices of many emerging markets. Even though such crashes are also observed in developed

markets, they are less frequent and of smaller magnitude, and the recovery is faster than in

emerging markets (Patel & Sankar, 1998). In emerging markets, the crash is usually triggered by

a currency crisis. As emerging countries are economically less diversified than developed

countries, they rely on a few activities to generate exports, and are strongly dependent on

imports. The exchange rate is a crucial variable.

Review on Foreign Exchange Reserves:

Over the years, the foreign exchange market has emerged as the largest market in the world and

the breakdown of the Bretton Woods system in 1971 marked the beginning of floating exchange

rate regimes in several countries. The decade of the 1990s witnessed a perceptible policy shift in

many emerging markets towards reorientation of their financial markets and these changing

contours were mirrored in a rapid expansion of foreign exchange market in terms of participants,

transaction volumes, decline in transaction costs and more efficient mechanisms of risk transfer.

In India the foreign exchange market has originated in 1978 begeining with the banks to ndertake

intra-day trade in foreign exchange. Before the reform process the Indian foreign exchange

system was in a critical juncture and in the 1990s the Indian foreign exchange market witnessed

far reaching changes along with the shifts in the currency regime. Following the

recommendations of Rangarajan Committee on Balance of Payments, the exchange rate of the

rupee pegged earlier was floated partially in March 1992 and fully in March 1993. Thus, the

unification of the exchange rate was instrumental in developing a market-determined exchange

rate of the rupee and an effort towards current account convertibility.

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Forex Market

Further, following the recommendations O.P.Sodhani Expert Committee, since 1996, wide-

ranging reforms have been undertaken for deepening and widening of the Indian foreign

exchange market. An Internal Technical Group on the Foreign Exchange Market was constituted

in 2005 to undertake a comprehensive review of the measures initiated by the Reserve Bank and

identify areas for further liberalisation or relaxation of restrictions in a medium-term framework.

These efforts have resulted in the momentous developments in the enhanced risk-bearing

capacity of banks along with rising foreign exchange trading volumes and finer margins.

Thus, the foreign exchange market in India has acquired depth (Reddy, 2005) and the conditions

have also generally remained orderly (Reddy, 2006c). Although it is not possible for any country

to remain completely unaffected by developments in international markets, India was able to

keep the spillover effect of the Asian crisis to a minimum through constant monitoring and

timely action, including recourse to strong monetary measures, when necessary, to prevent

emergence of self fulfilling speculative activities (Mohan, 2006a).

Analysis of the Literature:

1. Foreign Exchange is an age old concept studies continuously by the researchers across

the globe.

2. Most of the studies have been conducted in order to find out the use of Foreign Exchange

Reserves maintained by the nations and their usage.

3. Hardly, there are some studies that focus on Foreign Exchange Market as an investment

avenue by the simple investors.

Thus the need for study is felt.

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Forex Market

Area of study:


ULHASNAGAR a small town somewhere in thane district. A PLACE which is nowhere left

behind. A PLACE full of crowd with mostly SINDHI COMMUNITY and other communities

too. A PLACE where doing business is in the BLOOD of people living here. ULHASNAGAR

being called as BUSINESS HUB, divided in five camps , nearby ambernath and kalyan.

Ulhasnagar, which is once a military camp area for Sindhi refugees migrated from Pakistan,

is now heavily populated with this community people. The city is also known as Sindhunagar

and it is very famous from economic aspect. Ulhasnagar is a very good business centre not only

in Thane district, but also in Maharashtra State. It is a city located on the coast of West India,

which is nearly 60 kilometers northeast of the city of Mumbai. Birla temple, furniture market,

gajanand market, jeans market, Century rayon factory, shiv mandir etc are the important places

in Ulhasnagar.

Brief description:

Ulhasnagar-1 (W): It is also known as Ulhasnagar camp-1 and it is located on the west side of

railway stations. The main center here is a market with famous landmarks like Goal maindan

where many people visit from nearby areas like kalyan, ambernath, badalpur, dombivili, thane,

titvala etc for shopping.

Ulhasnagar-2 (W): The other name of this place is Ulhasnagar Camp-2. It is a market with

popular landmarks like Gajanand market and it is famous for clothing, electrical and electronics

etc. Nehru Chowk is the main centre here.

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Forex Market

Ulhasnagar-3 (W): it has another name as Ulhasnagar Camp-3. It is mainly a market and it is

located on the west side of railway stations. The famous landmarks here are furniture bazaar,

RKT College, Sapna theatre, Ashok-Anil Multiplex etc. it is mainly a furniture and electronics


Ulhasnagar 5 (E): This locality, which is also known as Ulhasnagar Camp-5, is located on the

eastern side of railway stations and it is mainly a residential area. You can see several jean

making small scale industries here. Jhulelal Mandir, Swami Sarvanand School, Swami

Shantiprakash Chowk, Nethaji Garden, etc are the famous landmarks here. This locality is

heavily populated with Sindhi community people.

Originally, known as Kalyan Military transit camp (or Kalyan Camp), Ulhasnagar was set up

especially to accommodate 6,000 soldiers and 30,000 others during World War II. Sindhis, in

particular, began life anew in the new land. The area was converted into a township in 1949,

and named Ulhasnagar by the then Governor-general of India, C. Rajagopalachari (literally 'city

of joy'; ulhas = joy; nagar = city). On August 8, 1949 the first and last Governor-General of

India, C. Rajagopalachari, laid the foundation stone.

As said earlier, ULHANAGAR is a place which is nowhere left behind because each and

everything is available here, as it is good in providing services like EDUCATION,



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Forex Market


The city has colleges and an industrial-training institute like institute of technology, Holy family

Convent High School, New English (at camp no.5), SST College of Arts and Commerce

etc. Smt. Chandibai Himatmal Mansukhani college and R. K. Talreja are two major colleges.


Ulhasnagar, one of the busiest business centers in Maharashtra, has several jewellery

showrooms. Some of the popular jewellery showrooms in the city are listed here.

We can watch the gradual development of Ulhasnagar to a shopping hub and business centre

from a military camp area in the pre-independence era only with wonder. Sindhis, who migrated

to this land from Pakistan, has significant role in the growth of Ulhasnagar in the business field.

Even though they came to the city with minimal resources, now most of the small and big shops

in Ulhasnagar are under owned by them. It is nothing else but their hard work and talent that

made them able to develop this city to a mini-Japan during the last five decades.


Ulhasnagar, which is the most popular industrial and commercial township of Thane district, is

famous for shops of wedding costumes, jeans and other readymade garments. Sindhi people, who

live other parts of India such as Gujarat, Goa and Madhya Pradesh, visit Ulhasnagar to do their

wedding purchase. There are many shops, which are exclusively aimed for wedding costumes

The city is also famous for jeans manufacturing. Jeans and ready made garments manufactures at

Ulhasnagar 5 are sold in all markets of the country. Many popular jeans brand have factories in


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Forex Market

The most busy commercial and shopping center here are Ulhasnagar 2 & 3.

Tourist Attractions in Ulhasnagar:

There are several tourist attractions in Ulhasnagar including beautiful locations, religious places

and historical monuments etc. Some of the famous temples in Ulhasnagar including Chaliho

Sahib, Birla Mandir, haji Malang, Jhulelal Temple, Saint Satram Dham and Swami Shanti

Prakash Temple etc


Kalyan is a part of the Mumbai Metropolitan Region in the Thane District of Maharashtra.

Kalyan is known for providing the significant work force for the economy of Mumbai. It is also

known for being the Mumbai region's exit station to North and South India.[South]

Kalyan is within the Administrative division (Tehsil) of the Thane District. Kalyan and its

neighbouring township of Dombivli jointly form the Kalyan-Dombivli Municipal Corporation,

abbreviated as KDMC. It is considered a part of the Greater Mumbai built-up area, along with

Bhiwandi, Thane, Ulhasnagar and the municipal councils of Ambernath and Badlapur


During the British Era, the administration spelled Kalyan as Kallian, Callian and sometimes

as callianee. Kalyan is known for being a city being constantly sieged by foreign armies like

the Mughals, the Portuguese and the British. The city regards the Marathas with special

significance for being the only line of defence against invading armies. Decaying structures and

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Forex Market

traces of maratha fortification still exist in the city like the Durgadi fort. Extensive ruins in

Kalyan indicate the city's former magnificence


With more than 15 lakhs population. Kalyan is a part of Kalyan-Dombivli Municipal

Corporation established in 1983 with municipalities of Kalyan, Dombivli, Ambarnath and 81

villages. It was then one of the largest urban local body in Mumbai Metropolitan Region (MMR)

and in the state with the area around 209 sqkm. Government of Maharashtra has taken decision

to delete major area of the corporation limits on different occasion. Presently the total area of the

corporation has remained to the tune of 67 sqkm.

Prime Residential areas in Kalyan (1)Ammu nagar in Kalyan west is centrally located prime

residential area because of its Proximity to important places . 5 minutes drive from Kalyan

Railway Station, 7 minutes drive from Shahad Railway Station, 10 minutes from Vithalwadi

Railway Station. 5 minutes drive from Khadakpada,Godrej Hills, Walkable distance from all

major banks, all major coaching classes, Birla College, Birla School, Lourdes School, Holy

Cross Convent School, Municipal Commissioners Bungalow, DCP Bungalow, Sub-Registrar

Office I & II, Income-Tax Office, Central Excise office, Dy.RTO etc. Near proposed KDMT

bus depot. (2)Khadakpada, (3)Godrej Hills

1. Electric supply: The township receives its electric supply from the Maharashtra State

Electricity Board (MSEB).

2. Roads: The inner arterial roads and the main routes through the city have been developed

by the MSRDC.

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3. Water supply:The city has good water sources in and around it, which includes the

Ulhas river in its vicinity, lakes in the central areas, and high storage tanks. the city

boasts of an eco friendly waste water treatment plant and a water cleaning plant near

Gandhare village.

4. Public parks & playgrounds: There are three large parks in Kalyan area i.e. Rani

Laxmibai Park (Near Commissioner Bungalow), Nana- Nani Park at Near Gurudev Hotel

& Park Near Lord Shivas Paradise in Chikanghar. Other small parks have been developed

near big localities to cater the demands of citizens for a more environment friendly

sustenance. There are 3 major play grounds i.e. Yashwant Rao Chavan sports

complex(Maxi ground), Subhash Maidan & Birla College Ground.

5. Medical facilities: Recently (Apr 2014) advanced Laproscopic, Cancer surgery and

pediatric hospital was inaugurated in Kalyan - Metro Criticare Hospital (Dr Nitin Zabak),

Syndicate, Kalyan. Apart from this there is Fortis Hospital,Godbole Hospital, Shree Devi

hospital,Sampada Hospital- on Ammu Nagar Birla College highway link rd,Phadke

Hospital, Meera Hospital, Shree Hospital, Apex Hospital in Kalyan.


KDMC is a municipal corporation in Thane district of Maharashtra state, India. A municipal

corporation formed in 1983 to administer the twin townships of Kalyan and Dombivali. The

municipal corporation has a population 1,193,266 (2001 census). Due to its highly educated

population it is often called the second cultural capital of Maharashtra after Pune. Kalyan was

famous as a port since ancient times. Records of its existence as a premier port in the region have

been found in ancient Greek manuscripts. Dombivli station is about 48 km from CST station

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along the central railway and is connected to all parts of Maharashtra by rail as well as road.

Kalyan is one of the most important junctions in India with most of the outstation trains stopping

at it. Nearest airport is Mumbai airport which is 40 km away. The corporation is governed by

Bombay Provincial Municipal Corporation Act 1949. Following authorities are given charge to

carry out the provisions of the act, namely - 1. A Corporation. 2. A Standing Committee. 3. Ward

Committees 4. Municipal Commissioner Both the cities are divided into 107 wards. Municipal

Corporation consists of Councilors Elected directly at Ward Elections. The number and

boundaries of the Wards into which the City is divided is specified by the State Election

Commissioner. There are five Councilors nominated by the Corporation. As per the provisions of

the Act, the total number of Councilors is 112. The Corporation elects one of its members as the

Mayor and another to be the Deputy Mayor.


Mumbai University Affiliated Colleges and School-cum-Colleges [

Birla College of Arts, Science & Commerce

G.E.I Jr.Collage


Ganesh Vidya Mandir, Kalyan (East)Best School in Kalyan

Holy Cross Convenant High School

Model English High School

G.E.I High School (Subhedar Wada)

NRC School

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Sri Vani Vidyashala High School

St Thomas School, Kalyan

Captain Ravindra Madhav Oak High school

Sai English High School

Guru Nanak English High School

K.C Gandhi English High School

Old Lourdes English High School

Birla School

Don Bosco High School

Recent development projects in Kalyan:

Skywalks: To ease traffic around the station area, MMRDA has constructed a 1.4 km

long Skywalk, at the cost of a whopping Rs.84 Cr, under the Station Area Traffic

Improvement Scheme (SATIS). Given the earlier traffic and geographical system, it has

been the most challenging skywalk project so far, and is the most expensive skywalk in

Mumbai. Another skywalk linking the East-West parts of Kalyan is now under



Various banks in the city are ICICI, SBI, HDFC,AXIS, Indian Overseas bank

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Metro Junction:

The 5,50,000 sq ft. mall, called Metro Junction composes of an Amusement Park, Game Zone,

Retail Space, Food Court and Multiplex. Kalyans first five screen multiplex including one

exclusive Gold Class screen of 46 seats which is accompanied with an exclusive Gold Class

Lounge. The multiplex has an overall capacity of 1320 seats. Kalyans first Amusement Park,

and dedicated retail space, such as Big Bazaar - the largest outlet on a single level anywhere in

India, The Loot the largest store in India, Fashion Yatra, the gaming zone and McDonald's

listed as their major retailers. Kalyans first mall offering a truly international retail,

entertainment and leisure experience for the entire family. It provides ample opportunities for

pleasure shopping as well as a host of entertainment options through a Multiplex, Amusement

Park, Kids Area, Game Zone and a Food court. It is huge now consisting of Mc donalds, KFC

and many more multi national brand company. The Metro Junction mega structure is planned

over 5,50,000 square feet of covered area as an integrated commercial development.


SM5 at Sarvoday Mall

Cinemax at Spring Time Khadakpada

Chokhi Dhani:

Chokhi Dhani Village has been the mirror of Rajasthani culture since 14 January 2009. Started as

part of ambiance for a restaurant, as a franchise in surat, over the year it has evolved as a tasteful

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and authentic symbol of ethnic village life of this most colorful state in the country .is situated in

Bhiwandi. If you are wondering what else will get you by once the charm of living in a village

wears off, Chokhi Dhani has plenty to offer by way of entertainment. To begin with, theres the

adventure of trying out the traditional cuisine that will be radically different from what youve

been used to all your life. Approach it with an open mind and you just might end up enjoying it,

even asking for second helpings. In addition, you can go for camel or elephant rides, enjoy

traditional puppet show, dress up in colorful Rajasthani costumes and have pictures taken, watch

the performance by folk singers and dancers, or smoke away like a powerful nobleman at the

Indian pipe, also known as the "hookah."

Ganesh Ghat:

Ganesh ghat, recently created by the Corporation as a creekside chowpatty for Kalyan residents

is currently the most popular place in town. Apart from the mandatory 'bhel-puri' 'paani-puri'

stalls and portable merry-go-rounds it also seems to have a katta for people to hang out.

Kala Talao:

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Children's Playground in Kala Talao

Walking or jogging path in Kala Talao

Kala Talao is a historic lake. The lake which is located about one kilometer to the north of the

Kalyan railway station, covers about 24 acres (1.212*885) and varies in depth from 6 to 14 feet

and has its sides lined throughout with broken basalt masonry. The lake is known as the Kala

talao as the black mosque or the Kali Masjid is located on its bank. This is one of the place of

interest in Kalyan as people come here for relaxing, jogging and also for paddle boating. It also

have a small children park.

Birla Mandir:

Birla Mandir is a Hindu temple for Vithoba located in the vicinity of the Century Factory in

Shahad on the National Highway to titvala. It has also served as a shooting location for

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Bollywood films like Tere Naam. This temple is located at a very comfortable location, easily

accessible by Auto rickshaw from Kalyan railway Station. A well maintained garden, the temple

is very beautiful at night, Garden is suitable for all ages and good for a day picnic.

Proposed Developments:

MMRDA has drawn up plans for a monorail link between Thane-Kalyan-New Mumbai

over a three year duration at the cost of Rs. 3000 Crores. The project is in the planning


Developments on revamping Kalyan Junction as another Railway Terminus are planned to

ease rail transport in Mumbai.

MMRDA has plans for a multi-modal bus rapid transport system (BRTS) and mass rapid

transport system (MRTS) which will cover Kalyan as well.

A four-lane expressway will enable people to travel between Virar-Vasai-Diva-Bhiwandi-

Kalyan-Panvel to Alibag in a matter of few hours. The four-lane expressway will have

wide footpaths, subways, foot-over bridges and service roads linking the major towns on

the route.

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Facts and findings:






Out of 100 sample size 80% respondents were males were as 20 %respondents were female who

invest in forex market.

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20% 20%



Out of 100 Respondents people who invest in forex market. 60% of respondents belongs

to business class while remaining 40% are Service class people and Professionals.

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Out of 100, 50 % people invest in forex market on monthly bases. 10% on quarterly .

While remaining 30% and 10% people on Yearly and Half yearly bases respectively.

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60 %people out of 100 deal with dealers for their investements in forex market while

remaining 40 %deal with Banks for their investments.

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0 5 10 15 20 25 30

Out of 100 sample size, 20 %people deal in Candian dollar and Japanese yen. 30 %

in Australian dollars and currency of Great Britian. 50% people deal in US dollars

and EURO

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70% People out of 100 belief that their is risk involved while investing in for Market.

Remaining 30% people belief that their is no risk in it.

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75 Respondents out of 100 have a perception that investing in different

Currencies helps to minimize the risk.While 25 people think it doesnt


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Out of Sample size of 100, 60 %People use hedging for currency risk while

Remaining 40 %dont use.

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90% of respondents are aware of the brokerage charged by their dealers.While

10% are still unaware about it.

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Out of 100, 70% respondents are satisfied with brokerage their dealers charge.

While remaining 30% respondents are unsatisfied.

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0 10 20 30 40

30 %Respondents invest in forex market from investment point of view out of

100.35% people say they invest for risk diversification. 35 %people say they invest in

foreign currency for Future unseen events and remaining 5% people invest for returns


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0 5 10 15 20 25 30 35

60% Respondents think that US dollars and Australian dollars are beneficial

Currencies to invest in forex market.While 20% people think thatGreat Britian

Pound is good.While remaining 20% go for Australian dollor, EURO and

for Japanese Yen.

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80% people out of sample size of 100 belief that Investments in forex market should

be for longer time span so as to get maximum returns. While 20 %people think that

Investments in forex market should be for shorter period of time.

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90% of respondents belief that returns from investment in forex market are

Beneficial.While remaining 10% think that they are not beneficial.

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a) The total number of respondents surveyed for the purpose of study was 100.

b) Out of these 100 respondents 80 were Male and 20 were female.

These respondents were selected on the basis of RANDOM SAMPLING


d) Out of 100 respodents 60 were self employed and 40 were service class

as well as professionals.


Out of 100 investors,50 prefer to invest in forex market on monthly bases.This may be

due to higher returns.While 30 of them invest on yearly bases.The reason behind this

could be that they want to play with lesser risk while investing in these markets.While

20 of them invest on half yearly and quarterly bases.


60 respondents prefer to deal with dealer while making an investment.This could be due

to the brokerage or the choices they give them in different currencies.While 40

of them prefer to go with banks.This may be due to restrictive covenants they have.


Out of 100 respodents,50 go for US dollars and EURO this may be due to they give

Higher returns in compare to other currencies.While 30 of them prefer Australian

Dollars and Great Britian Pound.While 10 choose japans yen.The currency choices may

be in the one in which respondents could get fairly good returns at lesser risk and

remaining 20 respondents find Candian dollar profitable because of their returns.

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70 Investors think that investing in forex market involves no risk. This may be due to

They incurred no loss during their investments. While 30 respondents think that their

is risk involved.As every coin has two sides.So while they see the profit side they will see

the negative side in form of loss.


As they say variety is the spice of life.In same way 75 respondents think that investing

in different currencies would be more beneficial as this could diversify their profit

margin as well as risk.While 25 are of the opinion that only one currency could give them

good returns.


60 respondents think that hedging could defence them from storms of forex market.

This could be because hedging minimize the chances of loss.While 40 think that hedging

doesnt help them. May be hedging doesnt help them to diversify their



90% of respondents are aware of the brokerage their dealer charge them this could

be because brokerage is the one which could affect your profit margin.While 30 are still

unaware because they must have belief in their dealer and give them the brokerage they

ask them.

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70 people out of 100 are satisfied with their brokerage charges may be this helps to

increase their profit margin.While 30 are still unsatisfied may be they think that this

could reduce their profit margin.


35% of investors believe that risk diversification is their reason for investments in forex

market because this helps them to diversify their risk.While 60% think that they invest

due to investment purpose as well as for future foreseen incidents. They think this way

may be because it could protect them from uncertainity of future incidents.

While 5% think returns and rewards are their reason for investments in forex market.


60 respondents think that Amercian and Australian dollars are the currencies which

give them maximum profit may be the returns they get from these currencies are

more good. While 20 choose Great Britian Pound may be they find this currency

more trustworthy compare to other currencies.While 20 choose Candian

dollar,EURO and Japans yen over any other currency due to their profit ratio over

other currencies.


80 People think that long term investments are good for them.May be they find the more

you hold currencies the much more they could earn from them..While 20 people believe

that investments in forex market are meant to be for shorter time span because the more

the time span the more it increases your risk.

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90% respondents think that returns on investment in forex market is good because they

could have earned more profit out of it.While 10% respondents dont think this way.May

be they have incurred loss.

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Currency markets present a good investment opportunity. However, investors should participate

only after a thorough understanding of how they work. One has to be clued in to global

developments, trends in world trade as well as economic indicators of different countries. These

include GDP growth, fiscal and monetary policies, inflows and outflows of the currency, local

stock market performance and interest rates.

However, the Indian currency markets are well-regulated and there is almost no counter-party

risk. Investors should start small and gradually invest more.

Liberalization has transformed Indias external sector and a direct beneficiary of this has been

the foreign exchange market in India. From a foreign exchange-starved, control-ridden economy,

India has moved on to a position of $150 billion plus in international reserves with a confident

rupee and drastically reduced foreign exchange control. As foreign trade and cross-border capital

flows continue to grow, and the country moves towards capital account convertibility, the

foreign exchange market is poised to play an even greater role in the economy, but is unlikely to

be completely free of RBI interventions any time soon.

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1. A Paper Entitled Effect of Exchange Rate Volatility on the Ghana Stock Exchange

by Adjasi Harvey, Simon K. Harvey , Daniel Akwesi Agyapong dated December 28,


2. Asian Journal of Business and Management Sciences ISSN: 2047-2528 Vol. 2 No. 1



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