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PREFACE Today India is one of the countries in the world which is included in the developed country, and after

a few years it may be converted into developed country. Therefore being a management student, it is our responsibility to know where the economy goes. To know this, it requires a practical as well as theoretical knowledge of the current as well as past and future market knowledge.

Therefore as a partial fulfillment of my M.B.A. Programmed, I have made summer project on Organization study of India Infoline. During the summer project I had gain practical knowledge from the Research, selling and by doing some administrative work in India Infoline.

My main objective behind the summer project is to gain stock market knowledge as well as clear some financial concepts, which are used in day by day transactions.

ACKNOWLEDGEMENT I would like to express my deep sense of gratitude towards Mr. Kamlesh (Br. Manager and Company Guide), Mr. Chinmay Jani (Sr. Relationship Manager), Mr. Vivek Jarecha (Sales manager), Mr. Jigar Dave( Sr. Relationship Manager) and Mr. Vipul Ramanuj (Sr. Relationship Manager) for the precious guidance and support throughout the period of summer training.

I am indebted to all the respondents and all the staff members of India Infoline for not only giving me vital information but also for their enthusiasm and co-operation without which the study would never have been possible.

I am also thankful to my faculty guide Prof. Nitin Pillai for his valuable guidance and support.

Sr.NO 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17

Content Executive summary Industry Details Overview of NSDL Overview of CDSL Main Players in the Brokerage Industry Company Profile History And Background Products Services Milestones Competitors Details Objectives Research Methodology Competitive Analysis Findings Suggestions Bibliography

Page No 6 9 24 27 29 30 32 36 40 42 50 68 67 72

EXECUTIVE SUMMARY

In this competitive world each organization has to play different role to accomplishment of organizational goal. The goal is achieved by the effort of the different department of the organization. These departments are like Operation department, Finance department, Marketing department and Personal department.

The functions of the each department are required deep study to specify and understand the role of each function to coordinate each and every activity of the organization.

India Infoline group has around 560 branches and several sister concerns companies across all over India like India Infoline Securities Pvt. Ltd., India

Infoline Distribution co ltd., India Infoline Insurance Services ltd., India Infoline commodities Pvt. ltd., money tree consultancy services Pvt. ltd etc. During my summer project I have tried studied the all functions of the each department. In this project report I have discussed the all aspects related to the organization of India Infoline group in appropriate manner.

INDIAN BROKERAGE INDUSTRY

The Indian broking industry is one of the oldest trading industries that have been around even before the establishment of the BSE in 1875. Despite passing through a number of changes in the post liberalization period, the industry has found its way towards sustainable growth.

Share trading in India is undergoing a transition and consolidation phase witnessed never before. The competition is likely to become so severe after the entry of many players, retaining a customer is most di cult practice for any service provider.

Though India has a very big untapped market but the players will not ourish unless they change the way the customers are being served. Given the awareness level of today customers every player has to treat with care and make the customer feel that he is the king. Number of Online Share trader in India has crossed the line. More and more customers are coming under this umbrella and many of the

existing one are changing pavilion. So customer retention and satisfaction is now more important as it was never before. Players keep coming with new schemes in order to attract new customers and retain the existing one. This is being supplemented with increased advertising and brand building e orts. Success of any organization depends upon its being proactive. An often quoted marketing adage is to manage a business well is to manage its future and to manage its future is to manage information.

The securities market has essentially three categories of participants, viz., the issuer of securities, the investors in the securities and the intermediaries. The issuers are the borrowers or decit savers, who issue securities to raise funds. The investors, who are surplus savers, deploy their savings by subscribing to these securities. The intermediaries are the agents who match the needs of users and suppliers of funds for a commission. These intermediaries function to help both the issuers and investors to achieve their respective goals. There are large variety and number of intermediaries providing various services in the Indian securities market. Need for a broker

As per SEBI (Securities and Exchange Board of India.) regulations, only registered members can operate in the stock market. One can trade by executing a deal only through a registered broker of a recognised Stock Exchange or through a SEBIregistered sub-broker. The nancials and investment industry is a highly competitive in nature with almost well established rms diversifying and entering into this industry. As of today there are Over 2000 brokers, 10000 sub brokers and 1 crore investors. It is highly Competitive with entry of new aggressive players. Retail broking is highly fragmented industry with falling brokerages value added services and online trading, the new fad.

INDUSTRY DETAILS       Indian Capital Market Indian Financial System Capital Market Intermediaries Capital Market Process Overview of NSDL Overview of CDSL

Indian Capital Market The function of the financial market is to facilitate the transfer of funds from surplus sectors (lenders) to deficit sectors (borrowers). Normally, households have excess of funds or savings, which they lend to borrowers in the corporate and public sectors whose requirement of funds far exceeds their savings. A financial market consists of investors or buyers, sellers, dealers and does not refer to a physical location. It means that it is not requirement of existence of any physical place in the market. We can say any condition that it is market when any purchaser and seller come into existence.

And in case of capital market we can say any condition a market when there is an existence of investors and borrowers of the fund. Formal trading rules and communication networks for originating and trading financial securities link the participants in the market.

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INDIAN FINANCIAL SYSTEM:


FINANCIAL SYSTEM

CAPITAL MARKET

MONEY MARKET

TREASURY BILLS EQUITY MARKET DEBT MARKET CALL MONEY MARKET

COMMERCIAL BILLS PRIMARY MARKET SECONDARY MARKET DERIVATIVES MARKET CERTIFICATES OF DEPOSITS PUBLIC ISSUE NSE FUTURES &OPTIONS COMMERCIAL PAPERS

PRIVATE PLACEMENT

BSE INDEX TERM MONEY

DOMESTIC MARKET

OTCEI

PRIMARY SEGMENT ISE INTER. MARKET REGIONAL STOCK EXCHANGES SECONDARY SEGMENT STOCK

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Despite rapid expansion of the organized money market through a large network of banking institutions that have extended their reach even to the rural areas, there is still an active unorganized market. It consists of indigenous bankers and moneylenders. In the unorganized market, there is no clear demarcation between short-term and long-term finance and even between the purposes of finance. The unorganized sector continues to provide finance for trade as well as personal consumption. The inabilities of poor to meet them take recourse to the institutions that still remain outside the regulatory framework of banking. But this market is shrinking.

The capital market provides the framework in which savings and investment take place. On the one hand it enables companies to raise resources from the investors and on the other; it facilitates households to invest their savings in industrial or commercial activities. Those saving instrument that can be bought or sold freely are called securities. These include a range of products debt and equity that can be traded. The market where such trades place is called the securities market where such trades take place is called the securities market and comprises the various exchanges, intermediaries and its regulatory institutions.
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The capital market consists of primary and secondary segments. The primary market deals with the issue of new instruments by the corporate sector such as equity shares, preference shares and debentures. The public sector consisting of Central and State Government, various public sector industrial units, statutory and other authorities such as state electricity boards and port trusts also issue bonds. The primary market in which public issue of securities is made through a prospectus is a retail market and there is no physical location. Direct mailing, advertisements and brokers reach the investors. Screen based trading eliminates the need for the trading floor.

The secondary market or stock exchange where existing securities are traded is an auction arena. It may have a physical location like a stock, exchange or a trading floor. Since 1995 the trading in securities is screen based training eliminates need for a trading floor. And since the last year Internet-based trading has also made an appearance in India.

The secondary market consists of 23 stock exchanges including the National Stock Exchange and the over the counter Exchange of India and Inter Connected Stock
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Exchange of India Ltd. The secondary market provides a trading place for the securities already issued to be bought and sold. It all provides liquidity to the initial buyers in the primary market to re-offer the securities to any interested buyer at any price, if mutually accepted. An active secondary market and capital formation because investors in the primary market are assured of a continuous market and they can liquidate their investments in the stock exchange.

There are several major players in the primary market. These include the merchant bankers, mutual funds, and financial institutions, foreign institutional investors (FIIs) and individual investors. R & T (Registrar and Transfer) agents, custodians and Depositories are capital market intermediaries that provide important infrastructure services for both primary and secondary markets.

It is important to ensure a smooth working of this market, as it is the arena where the players in the economic growth of a country interact. Various laws have been passed from time to time to meet this objective. The financial market is India was highly segmented until the initiation of reforms in 1992-93 on account of a variety of regulations and administered prices including barriers to entry. The reform
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process was initiated with the establishment of Securities and Exchange Board of India (SEBI)

Capital Market Intermediaries

CAPITAL MARKET INTERMEDIARIES

MERCHANT BANKERS

R& T AGENT

STOCK BROKERS

CUSTODIANS

MUTUAL FUND

DEPOSITORIES

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Merchant Bankers means any person who is engaged in the business of issue management either by making arrangements regarding selling, buying or subscribing or acting as manager, consultant, adviser or rendering corporate advisory service in relation to such issue management.

R & T agent - Registrars to Issue

R & T agents are governed by SEBI. R & T agents are intermediaries who provide services to shareholders on behalf of issuers. Issuers may engage share transfer agents for maintaining Register of Member (ROM), managing corporate benefits like distribution of dividends, interest on debentures, bonus shares, right forms etc. R & T agents extend the depository connectivity services in the depository environment. Stock Brokers Stock Brokers are regulated by SEBI (stock brokers and sub brokers) Regulations 1992. The stockbroker is a member of the stock exchange. The stock brokers are the intermediaries who are allowed to trade in securities on the exchange of which
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they are member. They buy and sell on their own behalf as well as on behalf of their clients. Stockbrokers expand their business by engaging sub-broker. Sub-broker means any person not being a member of a stock exchange who acts on behalf of a stock broker as an agent or otherwise for assisting the investors in buying, selling or dealing in securities through such stock-brokers

Custodians

Custodians of securities mean any person who carries on or proposes to carry on the business of providing custodial services, Custodian service in relation to securities means safekeeping of securities of a client. SHCIL, Citibank N.A., Deutshe Bank, Standard Chartered Bank, HSBC Bank, IIT Corporate Services, HDFC Bank are among the few registered custodians in the country.

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Mutual Funds

Mutual Funds are financial intermediaries, which collect the savings of small investors and invest them in a diversified portfolio of securities to minimize risk and maximize returns for their participants. Mutual Funds have given a major filliped to the capital market both primary as well as secondary. The units of mutual funds, in turn are also tradable securities. Their price is determined by their net asset value that is declared periodically.

There are various types of mutual funds, depending on whether they are open ended or close ended and the end use of funds. An open-ended fund provides for easy liquidity and is a perennial fund. A closed ended fund has a stipulated maturity period, generally five years Depositories

The principal function of a depository is to Dematerialization securities and enables their transactions in book entry form.

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A depository established under the Depositories Act can provide any service connected with recording of allotment of securities in the record of a depository.

Depository Participants (DPs)

DPs are described as an agent of the depository. They are intermediaries between the depository and the investors. The relationship between the DPs and the depository is governed by an agreement made between the two under Depositories Act.

A DP can offer depository related services only after attaining a certificate of registration from SEBI.

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CAPITAL MARKET PROCESS

1)IPO

2)Private Placement

3)Right Issue

4)Stock Trading

5)Internet Broking

1) Initial Public Offering (IPO) market. This kind of tapping the savings for the first time is called IPO (Initial Public Offer) and raise the fund from the market for the second time by any existing company is known as FPO (Forward Public Offer) . SEBI guidelines regulate various procedures involved in making a public issue but price of shares,

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size of the issue, timing of the issue, listing of the issue is decided by the issuer. Issuers have to disclose all relevant facts and information in the prospectus. Prospectus also has to disclose risk factors and management perception about those risks. Large initial public offers are made through book building route. Under this route, market determines the price of issue by offering bids. Companies Act was

necessarily amended directing that all public issues above Rs. 10 crores have to be necessarily in Demat form. Investor can receive shares in a public issue by writing DP-Id and Client-Id in the share application form. 2) Private Placement Methods of raising funds directly from investors without issue of prospectus to the public are known as private placement. SEBI has prescribed the eligibility criteria for companies and instruments as well as procedures for private placement. Privately placed securities can also be listed if such placements fulfill all listing criteria

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3) Preferential Offer/Rights Issue Companies can expand their capital by offering the new shares to their existing shareholders. Such offers for sale can be made to the existing shareholders by giving them a preferential treatment in allocation or the offer can be on a rights basis i.e. the existing holders can get by way of their right, allotment of new shares in certain proportion to their earlier holding. If the shares are offered to a few of the existing shareholders instead to all shareholders or at a price different from the price at which they are issue to all, such issues are called preferential allotments. Preferential allotments require shareholders approval in the general body meeting. Further, all such offers have also to be in compliance with criteria laid down by SEBI. 4) Stock Trading An investor in securities needs assurance that they can convert their security holdings to cash to meet their cash requirements. The ability to convert value of securities into cash as and when anybody want is called liquidity. The liquidity is provided by the stock exchange. Stock exchange is a platform where buyers and sellers of securities will match their bids and offers for securities and exchange

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securities with cash. The offers and bids are routed through members of the stock exchange, popularly known as a broker. Stock exchange regulates the

transactions of the broker and ensures that the transactions are conducted fairly and transparently with justice to both buyers and sellers. 5) Internet broking With the Internet becoming ubiquitous, many institutions have set up securities trading agencies that provide online trading facilities to their clients from their homes. This has been possible since all the players in the securities market, viz. stockbrokers, stock exchanges, clearing corporations, depositories, DPs etc are linked electronically. Thus information flows amongst them on a real time basis.

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Overview of National Securities Depository Limited (NSDL)

In a span of about four years, investors have switched over to electronic (Demat) settlement and NSDL stands at the center of this change

NSDL is the first depository to be set up in India. It was incorporated on Dec. 12, 1995. IDBI the largest development bank in India, UTI the largest Indian mutual fund and the NSE the largest stock exchange of India sponsored the setting of NSDL and subscribed to the initial capital. NSDL commenced operations on Nov. 8, 1996.

The following organizations are the shareholders of NSDL  Industrial Development Bank of India  Unit Trust of India  National Stock Exchange  State Bank of India  Global Trust Bank Ltd.  Citibank
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 Standard Chartered Bank.  HDFC Bank Ltd.  The Hong Kong and Shanghai Banking Corporation Ltd.  Deutsche Bank.  Dena Bank  Canara Bank

Operations performed at a depository are as follows: Holds Securities in accounts  Transfer Securities between accounts  Transfers without handling physical securities.  Safekeeping of securities In the Depository: All joint holders to sign instructions.  No minimum balance required.  Interest can be earned only be participating in Stock Lending Scheme.  Does not move balances in account without account holders authorization.
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 Signature and photograph of nominees to be provided.  Providing the safety of shares of the share holders which are in their Demat account and in the Trading account.

SERVICE STANDARDS OF NSDL

A DP has to deal in business with the following characteristics: Sensitive and Demanding clients  Intense competition on the price front due to which the profit margins are under tremendous pressure  Thin profit margins require high volume of clients/transactions for operating the DP services profitably  High volume of business is error prone, unless supported by appropriate systems and quality of manpower.

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Overview about Central Depository Services (India) Limited (CDSL)

CDSL is the second depository set up by the Bombay Stock Exchange (BSE) in India. It commenced its operations on March 22, 1999. It was set up BSE and other co sponsored with the net worth of Rs. 104 crores. In it BSE has a 45 % stake while others have 55 % stake. In the same year it has Five Stock Exchanges established connectivity with it for offering trade in Demat securities and 765

companies signed up with it to get their securities admitted for dematerialization. It has 13 DPs in 91 cities across 168 locations covering 320 cities. Other co sponsored are as under.

 State Bank of India  Bank of India  Bank of Baroda  HDFC Bank CDSL has also attained membership of the Asia Pacific Central Securities Depository Group (ACG). ACG has 22 members including depositories from
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Japan, Jog Kong, Singapore, Malaysia, Australia, and New Zealand. Membership of the organization is expected to help CDSL enhancing its knowledge base and contributing to the development of other member organizations in the best international practices, settlement risk management, cross-border linkage and technological development. This, in turn, would help CDSL to secure foreign institutional investors business through their custodian.

OPERATION PERFORMED BY CDSL  Carrying out actually share transactions  To do PSU disinvestments  To provide Centralized system at one e-space  To secure Foreign Institutional Investors business  Dematerialization of the Securities  Pledge creation in against the securities  Dematerialization  Trading and settlement on day to day basis  Work as a custodian of its cli
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MAIN PLAYERS IN THE INDIAN BROKERAGE INDUSTRY y India Infoline y ICICI Direct y Angel Broking y Can Money y Geojit y HDFC Securities y Kotak Securities y Reliance Money y Religare y Share Khan y Way to Wealth y SBI Demat y Bridge Securities Limited y Mothilal Oswal y Citi Bank Demat y Frankfin y Karvy Securities
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COMPANY PROFILE

The IIFL (India Infoline) group, comprising the holding company, India Infoline Ltd (NSE: INDIAINFO, BSE: 532636) and its subsidiaries, is one of the leading players in the Indian financial services space. IIFL offers advice and execution platform for the entire range of financial services covering products ranging from Equities and derivatives, Commodities, Wealth management, Asset management, Insurance, Fixed deposits, Loans, Investment Banking, GoI bonds and other small savings instruments. IIFL recently received an in-principle approval for Securities Trading and Clearing memberships from Singapore Exchange (SGX) paving the way for IIFL to become the first Indian brokerage to get a membership of the SGX. IIFL also received membership of the Colombo Stock Exchange becoming the first foreign broker to enter Sri Lanka. IIFL owns and manages the website, www.indiainfoline.com, which is one of Indias leading online destinations for personal finance, stock markets, economy and business. IIFL has been awarded the Best Broker, India by FinanceAsia and the Most improved brokerage, India in the AsiaMoney polls. India Infoline was also

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adjudged as Fastest Growing Equity Broking House - Large firms by Dun & Bradstreet. A forerunner in the field of equity research, IIFLs research is acknowledged by none other than Forbes as Best of the Web and a must read for investors in Asia. IIFL research is available not just over the Internet but also on international wire services like Bloomberg, Thomson First Call and Internet Securities where it is amongst one of the most read Indian brokers. A network of over 2,500 business locations spread over more than 500 cities and towns across India facilitates the smooth acquisition and servicing of a large customer base. All IIFL offices are connected with the corporate office in Mumbai with cutting edge networking technology. The group caters to a customer base of about a million customers, over a variety of mediums viz. online, over the phone and at our branches.

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History & Background

India Infoline was originally incorporated on October 18, 1995 as Probity Research and Services Private Limited at Mumbai under the Companies Act, 1956 with Registration No. 11 93797. It commenced their operations as an independent provider of information, analysis and research covering Indian businesses, financial markets and economy, to institutional customers. It became a public limited company on April 28, 2000 and the name of the Company was changed to Probity Research and Services Limited. The name of the Company was changed to IndiaInfoline.com Limited on May 23, 2000 and later to India Infoline Limited on March 23, 2001.

In 1999, it identified the potential of the Internet to cater to a mass retail segment and transformed our business model from providing information services to institutional customers to retail customers. Hence it launched their Internet portal, www.indiainfoline.com in May 1999 and started providing news and market information, independent research, interviews with business leaders and other specialized features.
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In May 2000, the name of our Company was changed to India Infoline.com Limited to reflect the transformation of our business. Over a period of time, it has emerged as one of the leading business and financial information services provider in India. In the year 2000, they leveraged their position as a provider of financial information and analysis by diversifying into transactional services, primarily for online trading in shares and securities and online as well as offline distribution of personal financial products, like mutual funds and RBI Bonds. These activities were carried on by our wholly owned subsidiaries.

Their broking services was launched under the brand name of 5paisa.com through our subsidiary, India Infoline Securities Private Limited and www.5paisa.com, the e-broking portal, was launched for online trading in July 2000. It combined competitive brokerage rates and research, supported by Internet technology. Besides investment advice from an experienced team of research analysts, they also offered real time stock quotes, market news and price charts with multiple tools for technical analysis.

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Organization structure

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Corporate Structure India Infoline Ltd

India Infoline Investment Services Ltd

India Infoline Marketingt Services Ltd India Infoline Commodities Ltd India Infoline Asia Pte Ltd

India Infoline Wealth Management Ltd India Infoline Capital Ltd

IIFL Inc.US Investment IIFL securities Ceylon Ltd

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PRODUCTS

EQUITY India Infoline provided the prospect of researched investing to its clients, which was hitherto restricted only to the institutions. Research for the retail investor did not exist prior to India Infoline. India Infoline leveraged technology to bring the convenience of trading to the investors location of preference (residence or o ce) through computerized access. India Infoline made it possible for clients to view transaction costs and ledger updates in real time.

MUTUAL FUND A mutual fund is a body corporate registered with SEBI that pools money from the individuals/corporate investors and invests the same in a variety of different financial instruments or securities such as Equity Shares, Government Securities, Bonds, Debentures, etc. The income earned through these investments and the capital appreciations realized are shared by its unit holders in proportion to the number of units owned by them. Thus a Mutual Fund is the most suitable investment for the common man as it offers an opportunity to invest in a
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diversified, professionally managed basket of securities at a relatively low cost. Mutual fund units are issued and redeemed by the Asset Management Company (AMC) based on the funds net asset value (NAV), which is determined at the end of each trading session.

COMMODITIES India Infolines extension into commodities trading reconciles its strategic intent to emerge as a one stop solutions nancial intermediary. Its experience in secu- rities broking has empowered it with requisite skills and technologies. Increased o ering: The Companies commodities business provides a contra-cyclical alternative to equities broking. The Company was among the rst to o er the facility of commodities trading in Indias young commodities market (the MCX commenced operations only in 2003). Average monthly turnover on the commodity exchanges increased from Rs 0.34 bn to Rs 20.02 bn. The commodities market has several products with di erent and non-correlated cycles. On the whole, the business is fairly insulated against cyclical gyrations in the business.

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INSURANCE An entry into this segment helped complete the clients product basket; concurrently, it graduated the Company into a one stop retail nancial solutions provider. To ensure maximum reach to customers across India, we have employed a multi pronged approach and reach out to customers via our Network, Direct and A liate channels. Following the opening of the sector in 1999-2000, a number of private sector insurance service providers commenced operations aggressively and helped grow the market. PMS India Iinfolines Portfolio Management Service is a product wherein an equity investment portfolio is created to suit the investment objectives of a client. We at India Infoline invest your resources into stocks from di erent sectors, depending on your risk-return prole. This service is particularly advisable for investors who cannot a ord to give time or dont have that expertise for day-to-day management of their equity portfolio. It is all about your money, being managed by the experts, while you continue with your routine life. Isnt it simple and totally hassle free. Whats more, you can keep track of your dividends / bonus / rights issues with

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paperless tracking. So you always know how fast your investment is growing. It basically means assigning the right job to the right person.

DERIVATIVES The Derivatives Market is meant as the market where exchange of derivatives takes place. Derivatives are one type of securities whose price is derived from the underlying assets. And value of these derivatives is determined by the fluctuations in the underlying assets. These underlying assets are most commonly stocks, bonds, currencies, interest rates, commodities and market indices. As Derivatives are merely contracts between two or more parties, anything like weather data or amount of rain can be used as underlying assets.The Derivatives can be classified as Future Contracts, Forward Contracts, Options, Swaps and Credit Derivatives.

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y Services Provided by IIFL

1) E-Broking

y Multiple exchanges on single screen

y Intra-day calls

y Historical charts with technical tools

2) Research

o Daily services

o Technical services

o Fundamental service

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3) DAILY SERVICES

y Market Outlook At 9:30 P M y Technical Report At 6:00 P M y Deravative Analysis Report y Stock Analysis y Intra-Day Calls y Derivative Strategies y COMMODITIES SERVICES

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Milestones:

 

October 1995 Incorporated as Probity Research and Services Private Limited March 1996 Launched Probity 200, research reports on 200 leading listed Indian companies

 

June 1998 Launched Probity Sector reports May 1999 Launched our internet portal www.indiainfoline.com and changed our name to India Infoline Limited

April 2000 Forayed into distribution of mutual funds, fixed deposits, RBI bonds and other small savings products

July 2000 Launched www.5paisa.com, the e-broking portal and started online trading with membership of BSE & NSE

December 2000 Corporate agency for ICICI Prudential Life Insurance Company Limited

   

September 2001 IIFL became the Depositary Participant of NSDL March 2004 Launched commodities trading by taking membership of MCX April 2004 Received license from SEBI to offer Portfolio Management Service August 2004 launched Portfolio Management Services
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May 2005 listed on BSE & NSE May 2005 acquired NBFC license Oct 2005 acquired 75% stake in Money tree Consultancy Services, which is a distributor of mortgages & other loan products

Dec 2005 acquired 100% equity of Marchmont Capital Advisors Pvt. Ltd. which have ventured into merchant banking

Dec 2005 DSP Merrill Lynch Capital subscribed to convertible bonds aggregating Rs.80 crs.

        

2006 Acquired membership of DGCX Commenced the credit & finance March 2007 Their current stake in India Infoline is a little over 14%. 2007 Formed Singapore subsidiary, IIFL (Asia) Pte Ltd 2008 Launched IIFL Wealth 2009 Acquired to insurance for Housing Finance SEBI in-principle approval for Mutual Fund Obtained Venture Capital License 2010 Received in-principle approval for membership of the Singapore Stock Exchange .
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Received membership of the Colombo Stock Exchange. 2011 Received SEBI final approval for IIFL Mutual Fund.

Vision

Our vision is to be the most respected company in the financial services space.

Mission To become a full-fledged financial services company known for its quality of advice, personalized services and cutting edge technology

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IIFL CSR Initiatives

Barsana Eye Camp The IIFL Foundation sponsored an eye and dental camp held in February, 2010 with the support of expert doctors and surgeons from the Bhaktivedanta Hospital in Barsana near Mathura. While over 2,600 people underwent eye tests and over 800 were selected for free eye surgery, a total of over 1,800 dental procedures like extraction, scaling and filling, among others, were performed Pandharpur Medical Camp The IIFL Foundation sponsored the Pandharpur medical camp which was held by the Bhaktivedanta Hospital in July 2010 at Pandharpur. Free medical treatment was given at 4 camp sites, to approximately 49,815 pilgrims who had come to Pandharpur during Ashadi Ekadashi. The pilgrims were treated for

fever,injuries,fractures,gastroenteritis,myalagia,headache,epilepsy,malaria,respirat ory infections etc, during the camp. Blood Donaton Drive IIFL regularly organizes blood donation drives via camps at its various locations across India. Over 800 employees have participated in these camp
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Recent awards and accolades

1) Best Equity broker 2011 Best Equity Broker of the year at Bloomberg UTV Financial Leadership Awards 2011

2) Best Market Analyst 2009

Best Analyst Awards in the Oil & Gas and Commodities sectors at the Zee business for 2009

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3) Best Brokerage 2009

Amongst the top 3 for best Brokerage in India by Asia Money for 2009. 4) Indias Most Valuable CEOs 2009

Nirmal Jain ranked second in Indias most valuable CEOs by Business World for 2009. 5) Best Broker India 2008

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6) Most Improved Brokerage-India 2008

7) Fastest Growing Broking House

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Management Team

Chairman : Nirmal Jain

Managing Director :R .Venkitaraman

Institutional Equities Investment Banking Consumer Finance Retail Broking Wealth Management International Operations Offshore Asset Management Insurance Distribution

H.Nemkumar Ajit Menon,Donald D Souza Pratima Ram Nandip Vaidya Karan Bhaget Bharat Parajia Deepesh Pandey, Manish Srivastava Mukesh Kumar Singh

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Corporate Governance Independent Directors of Group Companies A.K.Purwar Nilesh Vikamsey Kranti Sinha M.N.Singh Independent Director Independent Director Independent Director Independent Director

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COMPETITORS DETAILS

 Angel Broking  Share Khan  Indian Bulls  Marwadi Group  Kotak Securities  Religare  ICICI  HDFC  Reliance Money

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Angel Broking Angel Group has emerged as one of the top 3 retail broking houses in India. Incorporated in 1987, it has memberships on BSE, NSE and the two leading commodity exchanges in India i.e. NCDEX & MCX. Angel is also registered as a depository participant with CDSL.

Rliance Money

Reliance Money is the subsidiary of Reliance Capital ltd. This is promoted by Anil dhirubhai ambani group (ADAG).Whose Chairman is Mr. Anil Dhirubhai Ambani. Reliance Money, through its affiliates/Partners, facilitates transaction in equities, Equity & commodity derivative, Offshore Investments, Mutual Funds, IPO, Life Insurance & General Insurance Products. The company is in the process of
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launching a comprehensive financial portal enabling to carry out on-line trading and investment activities in a secured, cost-effective and in convenient manner. It has presence in 95 cities across the country

SHAREKHAN Share khan is an equities focused organization tracing its lineage to SSKI, a veteran equities solutions company with over 8 decades of experience in the Indian stock markets. Share khan does not claim expertise in too many things. Sharekhan's expertise lies in stocks and that's what he talks about with authority. So when he says that investing in stocks should not be confused with trading in stocks or a portfoliobased strategy is better than betting on a single horse, it is something that is spoken with years of focused learning and experience in the stock markets. Share khan brings a user- friendly online trading facility, coupled with a wealth of content that will help investors stalk the right shares.

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INDIA BULLS India Bulls is Indias leading retail financial services company with over 300 locations in more than 110 cities. They have 4400 Client Relationship Managers are dedicated to serving customers unique needs. It is a public company and listed on the National Stock Exchange, Bombay Stock Exchange, Luxembourg Stock Exchange and London Stock Exchange. The company ranks at 82 positions in the list of most valuable companies in India. Net worth of it is $400 million. Product Offered by India Bulls are Stock Broking, Insurance Consultancy, Deliver and receive cheque and securities, Obtain market information MARWADI SHARES AND FINANCE PRIVATE LIMITED Marwadi Shares And Finance Pvt. Ltd. Was incorporated in 1992.Marwadi Group servicing more than 75000 clients, more than 554 pin codes. The company ranked among top 50 broking houses. It has 250 franchisee / sub-brokers and authorized persons network.

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KOTAK SECURITIES Kotak Securities, an affiliate of Kotak Mahindra Bank, is the stock-broking and distribution arm of the Kotak Mahindra Group. The institutional business division, which brings you AKSESS, primarily covers secondary market broking. It caters to the needs of foreign and Indian institutional investors in Indian equities (both local shares and GDRs, Global Depository Receipts). The division also has a comprehensive research cell with sartorial analysts covering all the major areas of the Indian economy. Kotak Mahindra is one of India's leading financial institutions, offering complete financial solutions that encompass every sphere of life. From commercial banking, to stock broking, to mutual funds, to life insurance, to investment banking, the group caters to the financial needs of individuals and corporate

The group a net worth of over Rs.1, 550 crores and employs over 3,000 employees in its various businesses. With a presence in 59 cities in India and offices in New York, London, Dubai and Mauritius, it services a customer base of over 5, 00,000

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Kotak Mahindra has partnerships with Goldman Sachs (one of the world's largest investment banks and brokerage firms), Ford Credit (one of the world's largest dedicated automobile financiers) and Old Mutual (a large insurance, banking and asset management conglomerate). ICICI WEB TRADE LTD. (ICICIdirect.com):

ICICIdirect.com was the first entrant into e-broking. ICICdirect.com provides the 3-in-1 to the users which ties in their saving bank account and their Demat account to their brokerage account electronically. This integration ensures that money is transferred to/from their bank account and the shares are transferred from/to their Demat account automatically without writing any cheques or transfer instructions while carrying out their trades in shares.

ICICIdirect.com has the option of trading in shares in cash, margin or spot segments. An investor can also invest in 14 Mutual Funds (Prudential ICICI MF, Franklin Templeton India MF, Alliance Capital MF, JM MF, Birla Sun Life MF, Sundaram MF, IL&FS MF, Principal MF, HDFC MF, Standard Chartered MF,

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Reliance Capital MF, Kotak Mahindra MF, TATA MF and DSP MERRILL LYNCH MF) through their trading account.

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Activation ,brokerage and other charges of different stock broking companies

CRITERIA

India Infoline Ltd.

Demat a/c opening charges Brokerage intra day, delivery AMC(Annual Maintenance Charges) Trading funding intra day, delivery Interest rate Debit period Mode of trading Margin money Software installation charges

555/-( lifetime) Classic Plan :- 5p,50p Freedom Plan:- 1p,10p Nil 10 times

T+ 4 days Both online and offline 10000 No extra charges

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CRITERIA Demat a/c opening charges Brokerage intra day, delivery

ANGEL STOCK BROKING 660 Classic plan: 3p ,20p Freedom plan; 1p,10p Rs.225 6times,4 times(minimum stock Rs 50000) 18 %pa T+2 DAYS Both online and offline 5000,5000,10000 No extra charges

AMC(Annual Maintenance Charges) Trading funding intra day, delivery

Interest rate Debit period Mode of trading Margin money Software installation charges

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CRITERIA

RELIGARE SECURITIES LTD

Demat a/c opening charges Brokerage intra day, delivery

500

25P&25P,3P&30P,2P&20P AMC(Annual Maintenance Charges) Trading funding intra day, delivery Interest rate Debit period Mode of trading Margin money Software installation charges Nil 6times,4 times 18 %pa T+2 DAYS Both online and offline 2500,5000 and10000 No extra charges

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CRITERIA Demat a/c opening charges Brokerage intra day, delivery AMC(Annual Maintenance Charges) Trading funding intra day, delivery Interest rate Debit period Mode of trading Margin money HDFC Ist Year Free. 3P,35P 3oo 5 Time Nil 6 Days Both Online and Offline Not required but bank account compulsory with minimum balance of 10000 Nil

Software installation charges

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CRITERIA Demat a/c opening charges Brokerage intra day, delivery AMC(Annual Maintenance Charges) Trading funding intra day, delivery Interest rate Debit period Mode of trading Margin money Software installation charges

ICICI DIRECT RS 750/50P,75P RS 500/3-4 times of the available funds. 18% p.a. T+2 DAYS Both Online & Offline

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CRITERIA Demat a/c opening charges Brokerage intra day, delivery AMC(Annual Maintenance Charges) Trading funding intra day, delivery Interest rate Debit period Mode of trading Margin money Software installation charges

Kotak securities 750 2.5P,0.25P RS 30pm 7times,4 times 21% T+2 Offline Rs5000/-

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CRITERIA Demat a/c opening charges Brokerage intra day, delivery AMC(Annual Maintenance Charges) Trading funding intra day, delivery Interest rate Debit period Mode of trading Margin money Software installation charges

Shrekhan Securities 750 5P,50 P 400 10 times 21% 5 days Online Rs5000/Nil

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CRITERIA Demat a/c opening charges Brokerage intra day, delivery AMC(Annual Maintenance Charges) Trading funding intra day, delivery Interest rate Debit period Mode of trading Margin money Software installation charges

Marwadi Securities 750 3P,30P 250 10 times Nil 5 days Online and Offline Rs5000/Nil

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CRITERIA Demat a/c opening charges Brokerage intra day, delivery AMC(Annual Maintenance Charges) Trading funding intra day, delivery Interest rate Debit period Mode of trading Margin money Software installation charges

Reliance Money 750 For One Year 2P,75P 50 10 times Nil 7Days Online and Offline Rs5000/Nil

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Objective 1) To study the criterion of different companies for opening demat account and trading account 2) To study the all kinds of financial services provided by IIFL to its client 3) To make a comparative analysis of the client services of different companies 4) To study the satisfaction level of existing client of IIFL 5) To analyze the policies of IIFL and its comparison with peers. 6) To know the functioning of a Stock Market

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Research Methodology

Research is scientific and systematic search for relevant information on specific topic and the topic is Comparative analysis of Brokerage firms with respect to IIFL

Research Objective:1 To study the various features of equity market 2) To study the criterion of different companies for opening demat account and trading account 3) To study the all kinds of financial services provided by IIFL to its client 4) To make a comparative analysis of the client services of different companies 5) To study the satisfaction level of existing client of IIFL 6) To analyze the policies of IIFL and its comparison with peers. 7) To know the functioning of a Stock Market Sampling design Types of sampling y Random Sampling
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Research Approach y Descriptive approach

Techniques to be used in research approach

y Survey and interview

Sampling Unit

y Questionnaire In this project Questionnaire is used as the research instrument. These questionnaires include Close Ended as well as Open Ended questions. The questionnaire is attached at the end of Annexure.

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Data collection

Primary Data Collection

y Structured questionnaire for the customer.

Secondary data collection y Journals y Web-sites y News papers

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COMPETITIVE ANALYSIS 1) Are you aware of the different Brokerage firms in Ahmedabad?

Yes No

Interpretation: 70% of the respondents are aware of the different brokerage firms in Ahmedabad and 30% are not aware. 2) Your annual Earnings

Less than 1 lac 1 lac to 2.5 lac 2.5 lac to 4 lac 4 lac to 7 lac More than 7 lac

Interpretation: Of the people who have invested in share market, 45% earn income over Rs. 7 lakhs.

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3) Have you invested in share market?

Yes No

Interpretation: Out of 100 respondents, 67%of the respondents have invested in share market and 23% of the respondents have not invested in share market. 4) In which of these Financial Instruments do you invest into?

Equity Mutual Fund Bonds Commodities Insurance Govt.Securities Bank F D Other

Interpretation: 30% of the respondents have invested in Bank FD and 30% of the respondents invested in share market also, 20% invested in insurance, 10% have invested in Mutual Fund and 10% have invested in Commodities.
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5) What term period do you choose for Investment?

Long term(5-10Yrs) Mid term(3-5Yrs) Short term(Below 3 Yrs) Tatkal(15 Days)

Interpretation: 45% of the respondents prefer long term investment (Below 3years), 20% of the respondents prefer long term investment (5-10Yrs), 30% of the respondents prefer mid-term investment (3-5Yrs) and 5% of the respondents prefer Tatkal model investment(15 days). 6) Do you have a De-mat a/c?

Yes No

Interpretation: 70% of the respondents have DEMAT account and 30% of the respondents dont not have DEMAT account.
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7) Which Broker do you prefer for Trading?

3 2.5 2 1.5 1 0.5 0 ICICI ShareKhan Indiabull Kotak Securities Angel Broking India Infoline Other

Interpretation: 28% of the respondent prefer ICICI, 25% of the respondents prefer India Infoline,15% prefer Kotak securities, 12% prefer Indiabulls, 10% prefer Share Khan and 10% prefer Angel broking. 8) Which type of trading you prefer?

Online Offline

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Interpretation: 55% of the respondents prefer offline trading and 45% of the respondents prefer online trading. 9) On Which Basis you trade?

Intraday Delivery Future&Option

Interpretation: 57% of the respondents prefer intraday trading, 32% of the respondent prefer delivery trading and 11% of the respondents prefer Future & Option. 10) Are You Satisfied with service of your Company?

Yes No

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Interpretation: 90% of the respondents are satisfied with their companys service only 10% are not satisfied. 11) How to differentiate your company from others?

Brokerage Research Report Software RM A/C Opening charge Products Others

Interpretation : 30% of the respondents prefer their company because of less brokerage,25% of the respondents prefer their company because of good research report,23% of the respondents prefer their company because of less De mat opening charge,12% respondent s prefer their company because of good RM and 10% of the respondents prefer their company because of good software.

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12)

How do you rate these trading companies? ( Rank 1 for highest and 5 for

lowest) 1. ___________ 2. ____________ 3. ___________ 4. _____________ 5. ____________ 6._____________ 7.______________ 8.______________


ICICI Direct ShareKhan Indiabulls Kotak Securities Religare Angel Broking India Infoline Others____________

3 2.5 2 1.5 1 0.5 0 ICICI ShareKhan India bull Kotak Securities Religare Angel Broking India Infoline

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Interpretation: 25 of the respondents given highest rank to ICICI, Second highest rank in India infoline, Third in Share Khan, and respondents given same rank for India bulls, Kotak securities, Religare and Angel broking.

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Questionnaire on

Competitive Analysis of Broking Industries


13) Are you aware of the different Brokerage firms in Ahmadabad? Yes No
14) Your annual Earnings

Less than 1 lac Rs. 1 lac to 2.5 lac Rs. 2.5 lac to 4 lac Rs 4 lac to 7 lac More than 7 lac
15) Have you invested some where else? Yes No

16) In which of these Financial Instruments do you invest into? Equity Mutual Funds Bonds Commodities Insurance Govt. Securities Bank F.D. Other______________________

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17) What term period do you choose for Invest? Long term (5 to 10 Yrs.) Midterm (3 to 5 Yrs.) Short term (below 3 Yrs.) Tatkal ( 15 Days) 18) Do you have a De-mat a/c? Yes No

19) Which Broker do you prefer for Trading?


ICICI Direct ShareKhan Indiabulls

Kotak Securities Religare Angel Broking


India Infoline Other________________________

20) Which type of trading you prefer?


Online Offline 21) On Which Basis you trade? Intraday Delivery Future Option

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22) Are You Satisfied with service of your Company? Yes No

23) How to differentiate your company from others?


Brokerage Research Report services Software Relationship Manager Account Opening Charges Products Others_______________________________

24) How do you rate these trading companies?( Rank 1 for highest and 5 for lowest) 1. ___________ ICICI Direct 2. .____________ ShareKhan Indiabulls 3. .___________ Kotak Securities 4. _____________ Religare 5. .____________ Angel Broking 6._____________ India Infoline 7.______________ Others____________ 8.______________

25) What additional features do you want to add in Broking firm? ________________________________________________________ _________________________________________________________ _________________________________________________________

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Personal Information
Name:_____________________ Age: _____________________ Sex: Male Female

Phone No: Occupation:

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Findings 1) According to this data 70% of the peoples know about the share market in Ahmedabad. 2) People like to invest their money in to bank fixed deposit rather than share market 3) According to this data the best preferred broking firm among the people of Ahmedabad is ICICI followed by India Infoline 4) 90% of the people are satisfied with their broking firm. 5) People like to invest their money in to long term basis.

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Suggestion 1) Brokerage should be reduce to the possible extent , so that new customers can be attracted 2) Margin amount should be reduced, so that new customers can be attracted 3) Advertisement should be given in news papers so that the persons who do not know online facility of share trading can be attracted. 4) Some discount/offer can be given to those who are opening account in groups. 5) People not that much aware about commodity marketing ,so company arrange seminar or special class for public. 6) The company should also organize seminars and similar activities to enhance the knowledge of prospective and existing customers, so that they feel more comfortable while investing in the stock market.

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Bibliography www.india infoline .com


www.nseindia .com www.bseindia .com www.moneycontroll.com

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