Module 1

Indian Financial
system

Organized Indian Financial

System
Financial
Institutio
ns

Financial
Service

Forex
Market

Financial
Markets

Capital
Market

Financial
Instruments

Money
Market

Primary Market
Secondary Market

Money Market
Instrument

Capital Market
Instrument

Indian Financial System An Overview

With the liberalization / deregulation in the Indian
economy , financial system has undergone
massive changes in its structure.
Three Stages:
1. Before independence pre independence
2. After Independence till 1990
3. After 1990

Indian Financial System An Overview

Orderly mechanism & structure in economy.

Mobilizes the monetary resources/capital from
surplus sectors.
Distributes resources to needy sectors.
Transformation of savings into investment &
consumption.
Financial Markets Places where the
above activities take place

Stage 1 Before independence:

Control of Money Lenders

No Laws / Total Private Sector
No Regulatory Bodies
Hardly any industrialization
Banks Traditional lenders for Trade and
that too short term
Main
concentration
on
Traditional
Agriculture
Absence of intermediary institutions in
long-term financing of industry
Industry had limited access to outside
saving/resources.

Stage 2: After Independence 19481990

Post Independence period stressed on
Planned economic development
Directive principles of state policy a
scheme of planned economic development
was evolved in 1951
As a result 5 year plans were introduced.
Planning distributing the resources by
the financial system priorities of 5yr
plans.
Main Objective:
To retain Government control over

Transfer of Ownership from Private to

public sector
During the second phase main thrust was to
transfer the ownership from private sector to the
public sector.
Nationalisation Of RBI
1948 - The entire share capital was acquired by
central government
Setting up of State bank of India:
Five year plans aimed at the development of
rural areas.
All India rural Credit Survey Committee
1951- criticized the working of the Imperial

Nationalisation of life insurance

Business:
One of the important milestone in the economic
development of the nation was the
nationalisation of 245 life insurance companies in
1956

Nationalisation of Commercial banks:

Public control of financial institutions in July
1969 14 commercial banks were
nationalized
6 more private banks were nationalized in
1980

Setting up of Financial Institutions- medium

term and long term industrial finance
Development of Finance Institutions:
Development banks- engaged in the promotion
and development of industry, agriculture
and other key sectors national level and
regional level.
1948 first development bank Industrial
finance corporation of India (IFCI)
Purpose: to provide medium and long term
credit to industrial concern
Regional development banks cater to the
needs of the small and medium enterprises
1951- Parliament passed State financial

 IFCI and State Financial Corporation served

only a limited purpose
1954- National Industrial Development
Corporation (NIDC)
Purpose: promoting industries but soon turned
out to be a financing agency restricting itself to
modernisation and rehabilitation of cotton
and jute textile industries
1955- The Industrial Credit and Investment
Corporation of India Ltd (ICICI) supported by
Govt Of India , WB, Common wealth financial
institution
Purpose: It provides term loan and take active
part in the underwriting of and direct

1958- Refinance corporation of industry ltd

(RCI)
Purpose: to provide refinance to commercial
banks and SFCs against the term loan granted
by them to industrial concerns
In 1964: Industrial bank of India (IDBI) was
set up as an apex institution in the area of
industrial finance
RCI merged with ICICI
State Industrial Development Corporations
(SIDCs) were established in 60s
Purpose To promote medium scale industrial
units

Investing Institutions:
Other institutions also participated in industrial
financing by mobilising public savings through
introduction of insurance scheme, mutual funds
etc.
In 1964: Unit trust of India (UTI)
1956 Life insurance Corporation of India
1973: General Insurance corporation
Other Institutions:
To provide help in specific areas such as
rehabilitation of sick units , export finance,
agriculture and rural development
1971 - Industrial Reconstruction corporation
of India ltd
Purpose: rehabilitation of sick units

In 1982 Export Import Bank of India (EXIM

bank)
Purpose: to provide financial assistance to
exporters and importers
In 1982- National bank for agriculture and
rural development (NABARD)
Purpose: provide short term and medium term
loans to agriculture and allied activities
Film Finance corporation
Tea plantation finance scheme
Shipping Development scheme
Newspaper finance corporation
Handloom finance corporation
Housing Development finance corporation

Changing role of Commercial banks:

Diverted the bank credit to industrial sector in
1951
Underwriting of issues of capital
Refinance corporation of industry refinancing
the term loans
Entry of major banks in new issue
management
Corporate counseling
Capital restructuring and
Portfolio management

Stage 3: After 1990S

It is well known that from 1951 to 1991, Indian
policy-makers stuck to a path of centralized
economic planning accompanied by extensive
regulatory controls over the economy.
The main objective of new economic policy is
to promote competition and efficiency
Outcome of the New Economic Policy
Liberalization/ privatization
Globalization
Deregulation
Closed economy to Open Economy

Major changes:
Entry of Private Sectors:
DFI have been converted into companies
Private sector banking and insurance sector
Changing Role of Development Finance
Institution(DFI)
Remarkable shifts in the activities if DFIs:
Engaged in Non-fund based activities such
as merchant banking, project counseling,
portfolio management, new issue management
etc
Asset based activities: Leasing, Hire
purchase, Bills discounting, housing finance,
insurance etc.
Raise funds through issue of bonds carrying

As a result following institutions were promoted:

Credit rating agencies
Credit rating Information Services of India ltd
(CRISIL)
Credit analysis and research ltd (CARE)
NSE
OTCEI
Emergence of Non banking Financial
Companies (NBFCs)
Provide Fee Based and partly fund based/
Asset based activities
Activities include:
Equipment leasing, Bills discounting, housing
finance, venture capital etc
Growth of Mutual Fund Industry:

Securities and Exchange Board of India

(SEBI)
Established in the year 1992
Purpose:
To promote the interest of the investors
To promote the development of the securities
market
Developments in Secondary Market/ Stock
market:
More transparency in trading and settlement
practices
Introduction of derivative market
Setting up of NSE and OTCEI
Setting up of National Securities Depository Ltd

IMPORTANT DEVELOPMENTS
Development Financial Institutions : (DFIs)
Set up CREDIT RATING AGENCIES
Privatization of DFI
Reduction in Govt. holding & Public
Participation e.g. IFCI Ltd., IDBI Ltd., ICICI Ltd.
Issuance of Bond by DFIs without
Guarantees to mobilize resources.

Govt.s

Reduction in holding of Govt. in Banks, i.e. Public

Participation / Listing

INDUSTRIES
Reliance & Dependence on technology.
E-mail
&
mobile
made
sea-change
in
communication, data collection etc.
Computerization a catch phrase and inevitable
need of an hour.
Dependent on Capital Market rather than only
Debts dependency.
Professional Management.
NBFC
NBFC under RBI governance to finance
Very large NBFCs are emerging (Shri Ram
Transport Finance, Birla, Tata Finance, Sundaram
Finance, Reliance Finance, DLF, etc.

Money Market

According to the RBI, "The money market is

the centre for dealing mainly of short character,
in monetary assets;
it meets the short term requirements of borrowers
and provides liquidity or cash to the lenders.
It is a place where short term surplus investible
funds at the disposal of financial and other
institutions and individuals are bid by borrowers,
again comprising institutions and individuals and
also by the government.

Structure of Money Market

Compone
nts

Institutions
or players

Financial
Instruments

Money Market (Components)

Call
Money
Market

Collateral
loan market

Acceptance Market Bill Market

Bill of exchange

TBs

Major institutions:
Commercial Bank
Central bank
Acceptance houses
Non banking financial Intermediaries
Bill brokers
Players in the Indian Money market:
Reserve Bank of India
Financial institutions: IFCI, IDBI, ICICI, LIC,UTI
etc
Commercial banks
Discount and finance houses of India
Brokers
Provident fund
Public sector undertaking
Corporate units etc

Characteristics or Functions of Money

market:
Economic Development:
Helps in economic development by providing
financial help to trade, commerce and industryby discounting bills
Profitable investment:
Borrowings by the government:
Borrowing short term funds at low interest rate
on the basis of treasury bills.
Mobilization of funds

Self sufficiency of commercial banks

In case of developed money market CB need
not borrow from the central bank
Savings and investments:
Maintain equilibrium - keep a balance between
the demand for and supply of money for short
term monetary transactions.

Money market Instruments:

Commercial bills / Bill of exchange:
The bill is signed by the drawer , directing a
certain person to pay a certain sum of money
only to, or order of certain person or to the
bearer of the instrument at a fixed time in
future or on demand.
Treasury bills:
A short-term debt obligation issued by the
government to finance government activities.
These are commonly referred to as T-Bills. They
are usually issued in maturities of one, three,
or six months.

T-bills are zero-coupon bonds, which mean that

 3- and 6-month treasury bills are auctioned

every Monday
One year treasury bills are auctioned every
four weeks
Types of Treasury Bills
Ordinary/ Regular :
Issued to the public and the RBI by the process of
auction or bidding
Usually 14 days, 182 days, 91 days and 364
days treasury bill
Adhoc- TBs:
Issued in favor of RBI with a view to replenish
Govt cash balances

Call and short Notice money:

Money given for a very short period
Call money - It may be taken for a day or
overnight but not exceeding 7 days
Banks borrow call funds for a short period to
meet CRR requirement
Rate of interest is very low
If the loan is given for one day , it is called
:Money at call and if the loan cannot be called
back on demand and will require at least notice
of three days , for calling back it is called
money at short notice

Certificate of deposits:
A certificate of deposit is a promissory note
issued by a bank. It is a time deposit that restricts
holders from withdrawing funds on demand.
Although it is stillpossible to withdraw the
money, this action will often incur a penalty.
Minimum size of the issue of a single depositor is
rs.10 lakhs, additional amount can be issued in
multiples of rs. 5 lakh

Commercial Papers:
Short term promissory notes issued by reputed
companies with good credit ratings and
having sufficient tangible assets
They are un secured and are negotiable by
endorsement
CP s are normally issued in a bearer form on
discount to face value basis
Repurchase agreement:
Repo is a transaction in which two parties agree
to sell and repurchase the same security. Under
such an agreement the seller sells specified
securities with an agreement to repurchase the
same at a mutually decided future date and a

Types of Repurchase Agreements

Overnight repurchase agreements, which
mature the next day
Open repurchase agreements, which have
undefined maturities. The rates are variable or
set daily; they roll or terminate at the request of
eitherparty
Term repurchase agreements have a defined
maturity date, a fixed rate, and are liquid

Uses of Repo
Helps banks to invest surplus cash
Helps investors achieve money market returns
with sovereign risks.
Raising funds by borrowers
Adjusting SLR/CRR positions simultaneously.
For liquidity adjustment in the system

Capital market
Definition: A capital market may be defined as
an organized mechanism for effective and
efficient transfer of money capital or
financial resources from the investing
parties i.e.
individuals or institutional savers to the
entrepreneurs (individual s or institutions)
engaged in industry or commerce in the
business either be in the private or public
sector of an economy

Functions of Capital market:

Mobilization of Savings - Link between Savers
and Investors:
Capital Formation
Encouragement to Investment
Promotes Economic Growth
Ready & Continuous Markets

Components of Capital market

New issue Market or Primary market
Both New companies and existing ones can
raise the capital on the new issue market.
Financial institutions, underwriters, brokers,
merchant bankers etc.
Stock market or Secondary market
Financial institutions

Capital market Instruments

1. Ownership Securities or Capital stock
2. Creditorship Securities or Debt Capital

Classification of Corporate Securities

Ownership
securities

Creditor ship
securities

Debentures

Ordinary or
Equity
shares

Preference
shares

Deferred
shares

Capital market Instruments

1. Ownership Securities or Capital stock
Every company, has a statutory right to issue
shares.
a) Equity Shares:
Are also known as ordinary shares or common
shares- owners capital
Equity shareholders are paid dividend after
paying it to the preference shareholders.

Characteristics of Equity Shares:

Maturity: Equity shareholder cannot be
redeemed during the lifetime of the company.
Claims/Right to Income Residual claim
Rate of dividend is not fixed variable income
security
Claim on asset residual claim on ownership of
company's assets
Right to control over voting rights
Board of directors are elected by E.S Annual
general meeting
1 equity share one vote i.e Each share carries one
vote and a shareholder has equal votes to the

Pre emptive rights

To safeguard the interest of equity shareholders
sec 81 of the companies act when ever a Public
limited company proposes to increase its
subscribed capital by allotment of further shares ,
After the expiry of 2 years of formation of the
company
Or
Expiry of one year from the first allotment
Which ever is earlier such shares must be offered
to existing equity shares Right shares
Limited Liability- liability is limited to the value
of shares they have purchased.

B) Preference shares:
These shares are given 2 preferences:
Payment of dividend fixed rate of dividend is
paid
Repayment of capital
Types:
Cumulative Preference shares:
These shares have a right to claim dividend for
those years also for which there are no profits
Non - Cumulative Preference shares:
They cannot claim arrears of dividend.

Redeemable preference shares

The company has the right to return redeemable
preference shares capital after a certain period
should be fully paid up.
Redeeem out of profits or fresh issue of capital
Irredeemable preference shares
Cannot be redeemed unless the company is
liquidated.
Prohibited as per Companies Act.
Maximum tenure of preference share is 10 years.

Participating Preference shares

Holders of these shares participate in the surplus
profits of the company
Non - Participating Preference shares
These shares do not carry additional right of
sharing profits of the company.
Convertible preference shares
Right to convert their holdings into equity shares
after a specific period
Non - Convertible preference shares- Cannot
be converted into E.S

Features of Preference shares:

Maturity: Not required to repay during the life
time
Exception: redeemable preference share
Claims of Income:
Fixed rate of dividend is paid
Exception: Participating Preference shares
Claims of Asset:
Exception: Participating Preference shares
Control: No voting rights
Exception: right to vote- during any kind of
resolution if dividend is due

C) Deffered shares:
Deferred shares are a form of stock that is
sometimes issued to key people within the
issuing company
Usually, executives or directors of the company
are eligible to receive these shares of stock.
Locked from active trading by the
recipients, they tend to provide larger dividend
pay outs than either common stock or
preferred stock.
It is not possible to participate in a deferred
stock program once employment is terminated
for any reason.
When the employee is no longer with the
company, the shares are converted to

II) Creditorship Securities:

Debentures:
Types:
Secured debentures : debentures with a charge on the assets of a
company.
Unsecured Debentures : Not protected by any charge on the
assets of the company. Also known as naked debentures

Registered debentures : The name and address of the holder and

date of registration are entered in the books of the company.
Bearer debentures : Bearer debenture interest are payable to
bearer and are transferable by mere delivery.
Redeemable debentures : When debentures are redeemable ,the
company has the right to call them before maturity.
Irredeemable debentures : They are not redeemed during the life
of the company
Convertible debentures : When an option is given to convert
debentures into equity shares after a period of time, it is a

Functions of New issue market:

1.Initial public offering Firms go to the public
for the first time
2. Seasoned Equity Offering raise additional
capital
Main functions of a new issue market:
1. Origination
2. Underwriting
3. Distribution:

1.Origination:
Function of origination is done by merchant
bankers who may be commercial banks,
financial institutions etc
-- A careful study about the project technical,
economical, viability to ensure soundness of
the project preliminary investigation
Type of issue
Time of floating an issue
Pricing of an issue- at par or premium
Type of securities

2.Underwriting:
Standing behind the issue
Outright purchase
Consortium method
3.Distribution
Sale of securities to ultimate investors
Service is performed by brokers, agents etc

Methods of Floating New issue:

1. Public issue
Directly offer to the general public fixed number
of shares- stated price through a document
called prospectus
Name of the company
Address of the registered office of the
company
Existing and proposed activities
Location of the industry
Name of the directors
Authorized and proposed issue capital of the
public
Dates of openings and closing the subscription
list

2. Placement
Shares are distributed through outright sale to a
limited number of sophisticated investors such as
financial institutions, mutual funds, venture
capital funds, banks, and so on.
Here the brokers act as almost wholesalers
selling them in retail to the public. The brokers
would make profit in the process of reselling to
the public.
The issue houses or brokers maintain their own
list of
clients and through customer contact sell the
securities. There is no need for a formal
prospectus as well as underwriting agreement.

3. Right Issue:

same as pre emptive right

4. Bonus share
5. ESOP

Stock exchange: Secondary market

The Securities Contracts (Regulation) Act, 1956
has defined stock exchange as an association,
organization or body of individuals, whether
incorporated or not, established for the purpose
of assisting, regulating and controlling
business of buying, selling and dealing in
Securities.

Stock exchange: Features

1. Market for securities :where securities of
corporate bodies, government and semigovernment bodies are bought and sold.
2. Deals in second hand securities :
3. Regulates trade in securities It merely
provides the necessary infrastructure and
facilities for trade in securities to its members
and brokers who trade in securities.
4. Allows dealings only in listed securities

Stock exchange: Features

5. Transactions effected only through
members:
All the transactions in securities at the stock
exchange are effected only through its
authorised brokers and members.
Outsiders or direct investors are not allowed to
enter in the trading circles of the stock
exchange.
Investors have to buy or sell the securities at
the stock exchange through the authorised
brokers only.
6. Liquidity
7. Motivation for improved performance
8. Marketing of new issues

Stock exchange: Features

5. Transactions effected only through
members:
All the transactions in securities at the stock
exchange are effected only through its
authorised brokers and members.
Outsiders or direct investors are not allowed to
enter in the trading circles of the stock
exchange.
Investors have to buy or sell the securities at
the stock exchange through the authorised
brokers only.
6. Liquidity
7. Motivation for improved performance
8. Marketing of new issues

Listing Procedure:
Certified copies of Memorandum and Articles of
association , Prospectus, underwriters
agreements with vendors and promoters etc.
Specimen copies of shares and debenture
certificates, letter of call , allotment,
acceptance and renunciation
Copy of balance sheet and audit accounts for
the last 5 years
Copies of offers for sale and circulars or
advertisements offering any securities for
subscriptions or sale in the last 5 years.

 Particulars of dividends and bonuses paid in

the last 10 years.
A statement showing dividends or interest in
arrears if any .
A brief history of the company since its
incorporation, giving details of its activity.
Particulars regarding the capital structure.
Particulars of share and debentures for which
permission to deal is applied for and their
issue.

 Certified copies of agreements if any with the

industrial finance corporation, ICICI etc
Listing agreements with the necessary initial
and annual listing fee

Criteria for listing:

At least 60%of each class of securities issued
must be offered to public and minimum issued
capital should be rs.3 crore
Advertisement must be made at least 2 days
before opening of issue
All companies other than investment
companies must have at least 10 public
shareholders for every one lakh rupees share
of fresh issue of capital
Companies having more than rs.5cr paid up
capital must list its securities in more than one
stock exchange

 If refund of excess application money is done

beyond 10 weeks from date of closure of
subscription list the interest has to be paid by
company between 4% and 15%
A certificate that promoters quota will not be
transferred or sold for a period of 3 yrs must be
submitted

Listing Obligation:
Company has to compulsorily notify the stock
exchange the following:
1)Date of board meeting when
Declaration and dividend
Right issue
Bonus issue will take place
2)Any exchange in the companys director or top
managerial personnel by death , resignation,
removal or otherwise
3) Any change in Companys capital structure
4)Any material change in the general character or
nature of companys business

5)Any re issue of forfeited shares

6) Any action aimed at redemption or
cancellation of any securities listed on the stock
exchange
7) Copies of notices/circulars sent to shareholders
8) Copies of statutory and annual reports
9)Certified copies of all resolution passed by the
company
The Stock exchange has the power to call for any
such other information as may be necessary in
the interest of the investors

Methods of trading in a stock exchange:

Step 1:Choice of a broker:
Purchase and sale of securities can take place
only through a broker .Therefore the first step
is to appoint a broker
Investors can also appoint their bankers .
Brokers demand letter of introduction or a
reference from a respectable party like
notary Public/Bank.
Client has to furnish documents like ID proof,
Address proof, PAN No etc.
After accepting the application ,the broker will

Step 2: Placement of order:

The order is usually placed by telegram ,
telephone, letter, fax etc
Abbreviation: Buy 100 SBI @ rs 156
At Best Order
Does not specify any specific price- executed
immediately at the best possible price but fix
the time frame
E g :Buy 100 SIB shares at BEST
Limit order: It is an order for the purchase or
sale of securities at a
Fixed price specified by the client
E g: Sell 100 DCM @ rs 76.

Immediate or cancel order : Purchase or sale

of securities immediately at the quoted price
If the order could not be executed it should be
treated as cancelled
E g: Buy 100 DCM @76 immediate
Discretionary order: In this type of order the
client gives complete discretion to the broker to
do business on his behalf. It means that he has
full faith in the broker.

Step 3:Execution of order:

When a matching bid is identified the clients order

gets executed automatically.
If no match is found, the order will be kept in the
system on a price cum time priority basis.
Price priority means that if two orders are entered in
to the
system at the same time ,order having best price will
get the priority.
Time priority means that if two orders are entered in
to the
system having same price ,order entered first will
get priority.
Once the transaction is finalized the details are
recorded in Chaupri or rough notebook
Sauda Block books or confirmation memos are
provided by the stock exchange- details are recorded.

Step 4: Preparation of contract notes:

Contract note is a confirmation of trade done
on a particular day on behalf of a particular
client.
Contract note should contain details like name
of the company,date of purchase, brokerage
etc.
A duplicate copy of this will be kept by the
broker.

Step 5:Settlement of transactions:

Settlement means delivery of shares or
debentures(ie the process by which sellers
account gets debited and buyers account gets
credited

Clearing Settlement:
Transactions are cleared and settled through the
clearing house
Special delivery settlement:
Delivery of securities and payments may take
place at any time exceeding 14 days following
the date of the contract as specified in the
contract

Step 6:Lodging for transfer and return of

certificates:
The share certificate along with the duly filled
transfer deed must be sent to the company
After verifying the company has to transfer the
shares in the name of the buyer and send them
back within 2 months
Finally the shares have to be registered in the
name of the buyers

Concept of Depository system

The traditional system of dealing in shares
involves dealing in Share Certificates with
enormous paper work,
getting the certificate duly endorsed in the
buyer's name which is complex,
Time consuming and also involves various
problems not only of bad deliveries of shares
but also loss of share certificates in transit.
In the Depository System, the securities of a
Shareholder are held in the electronic form
by conversion of physical securities to
electronic form through a process called
Dematerialisation' (demat) of share
certificates and facilitates transactions

Constituents of Depository system:

Depository
Depository Participants (DPs)
Share Registrar/Issuers
Investor

Depository is an organization where the securities

of the shareholders are held in electronic form at
the request of the shareholder through the
medium of a Depository Participant.
Two Depositories are regulated in India:
1. National Securities Depository limited
(NSDL)
It is a joint venture of IDBI ,NSE (National Stock
Exchange); and UTI (Unit Trust of India).
NSDL is the first depository to be set up in
India. It was registered by SEBI on June 7,1996.
2.The Central Depository Services (India)
Limited (CDSL)
promoted by Bombay Stock Exchange and Bank

 Depository participants (DP)

DP serves as a link between the investor and
the Company through NSDL / CDSL for
dematerialization of shares and other electronic
transactions.
DP provides various services with regard to your
holdings such as
Maintaining the securities account balances
Enabling surrender (dematerialisation) and
withdrawal (rematerialisation) of your
securities to and from the depository.
Delivering and receiving shares in your account
on your instructions.
Hence, shares bought by you on a stock
exchange can be received directly in your
account and similarly those sold by you can be

Earlier- Account period in NSE was from

Wednesday to the following Tuesday.
Now - One of the greatest achievements of the
current system is settlement of trades within
three working days, i.e. T+2 rolling settlement
which has replaced account period settlement.
Settlement Agencies
The NSCCL, along with other agencies like
clearing members, custodians, clearing
banks and depositories settles trades
executed on the exchange.

National Securities Clearing Corporation

Limited (NSCCL)
The NSCCL, a wholly owned subsidiary of NSE,
was incorporated in August 1995.
NSCCL commenced clearing operations in April
1996.
purposes:
To bring and sustain confidence in clearing and
settlement of securities;
To promote and maintain, short and consistent
settlement cycles;
To provide counter-party risk guarantee, and
To operate a tight risk containment system.
NSCCL carries out the clearing and settlement of
the trades executed in the Equities and

 Clearing Members
Clearing members are responsible for
settling the trades done on all the counters.
Settling the trades involves taking the
responsibility of making available the resources
required on time, i.e. making available the
funds and securities on the settlement day
Custodians
keeping the securities in a safe
manner/custody.
They hold the documentary proof of securities,
keeping the
title of securities intact in the name of the holder.
Clearing Banks
Clearing banks act as a link between the clearing
members and the NSCCL for the settlement of

Sr.N
Particulars
o.
1

Initial Listing Fees

Annual Listing Fees

Norms
Rs. 20,000/-

(i) Upto Rs. 5 Crs.

Rs. 15,000/-

(ii) Rs.5 Crs. To Rs.10 Crs.

Rs. 25,000/-

(iii) Rs.10 Crs. To Rs.20 Crs.

Rs. 40,000/-

(iv) Rs.20 Crs. To Rs.30 Crs.

Rs. 60,000/-

(v) Rs.30 Crs. To Rs.100 Crs.

Rs. 70,000/- plus Rs. 2,500/- for every increase of Rs. 5 crs

(vi) Rs.100 Crs. to Rs.500 Crs.

Rs. 125,000/- plus Rs. 2,500/- for every increase of Rs. 5

crs

(vii) Rs.500 Crs. to Rs.1000 Crs.

Rs. 375,000/- plus Rs. 2,500/- for every increase of Rs. 5

crs

(vi) Above Rs. 1000 Crs.

Rs. 625,000/- plus Rs. 2,750/- for every increase of Rs. 5

crs

Note: In case of debenture capital (not convertible into equity shares), the fees will be 75%
of the above fees.