PROJECT REPORT

ON

GROWTH AND FUTURE PROSPECT OF

INDIABULLS IN COMMODITY MARKET

Submitted in Partial Fulfillment of the requirement of Bachelor of Business Administration (BBA)

Jamia Hamdard University, New Delhi

UNDER THE GUIDANCE OF: SUBMITTED BY: MR. RASHID FAROOQUI AAMIR KHAN

ENROLLMENT NO. ODL/08/403/3636

BBA 3RD YEAR

SESSION: 2008-2011

DIRECTORATE OF OPEN AND DISTANCE LEARNINGJAMIA HAMDARD UNIVERSITY, NEW DELHI

THROUGHCENTER CODE -1014

VAG INFOTECH

TO WHOM SO EVER IT MAY CONCERN

This is to certify that the project work title “GROWTH AND FUTURE PROSPECT

OF INDIABULLS IN COMMODITY MARKET” by AAMIR KHAN,

ODL/08/403/3636 is an authentic work carried out by his under my guidance and

supervision in the Bachelor of Business Administration From JAMIA HAMDARD

UNIVERSITY THROUGH VAG INFOTECH SOUTH EX-I. The report submitted has

been founded satisfactory for the partial fulfilment of the degree of B.B.A

-------------------------

Mr. Rashid Farooqui

(PROJECT SUPERVISOR)

1

STUDENT DECLARATION

I here by certify that the project report entitled on “GROWTH AND FUTURE

PROSPECT OF INDIABULLS IN COMMODITY MARKET” Submitted in partial

fulfilment of the requirement for the award degree of Bachelor in Business

Administration to Jamia Hamdard, (Deemed University) Delhi (India) is my original

work and not submitted or the award of any other degree, diploma, fellowship, or any

other similar title or prizes anywhere else.

AAMIR KHANEnrollment No.

ODL/08/403/3636

2

ACKNOWLEDGEMENT

I would like to take an opportunity to thank all the people who helped me in collecting

necessary information and making of the report. I am grateful to all of them for their

time, energy and wisdom.

Getting a project ready requires the work and effort of many people. I would like all

those who have contributed in completing this project. First of all, I would like to send

my sincere thanks to Mr. Rashid Farooqui for his helpful hand in the completion of my

project.

AAMIR KHANBBA (FINAL YEAR)

3

TABLE OF CONTENT

1. Executive Summary

2. Objective of the Study

3. Research Methodology

4. Main Report

5. Analysis

6. Findings

7. Recommendations

8. Conclusion

9. Limitations of the Study

10. Appendices

11. Bibliography/Reference

4

EXECUTIVE SUMMARY

Commodity Market has been functioning in India from a period of pre-independence only but it was not organized. So the benefits were not reaching to small traders and consumers. They were exploited by big traders.

So, in the year 2002-03 GOI felt the need of a well organized commodity market in India too on the lines of commodity exchanges world over i.e. New York, Chicago, Hong Kong etc.

Finally in December 2003 a well organized commodity market in India too was established. Today there are 21 regional and 3 national commodity exchanges which were established as price setter for various commodities.

After three years of their inception, 3 national multi-commodity exchanges account for 94 pc of total trade volume in India. India’s commodity futures markets witnessed a whopping 373 per cent increase in trade in value terms during the financial year 2005-06.

The total value of trade increased to Rs 21,34,000 crore, according to the Forward Markets Commission (FMC). In the previous fiscal, the value of trade stood at Rs 5,72,000 crore.

It is predicted that by the end of this year Indian Commodity Market will surpass Chicago Mercantile Exchange in trade volume.

Keeping the huge growth in the commodity market in this short span of time in mind we tried to study the growth and future prospect of indiabulls in the commodity market.

We covered the Delhi region only for our research study, in which we have tried to know the present condition of commodity trading in this area and what is the future prospect.

For the above purpose we went to 30 leading broking firms dealing in Commodity Market which helped us to understand the present condition of commodity trading not only in Delhi but in India too.

We also talked to 100 people from different fields to know the growth and future prospect of commodity trading in this region. This helped us to know about the perception of common people about the commodity market. Lack of knowledge about the market among the masses was the biggest hurdle.

In the first phase of our study we visited the broking firms to know about there structure and the facilities they provide to their customers.In the second and final phase we met the prospective clients who are either investing or can invest in the commodity market if they come to know about the prospects in this market.

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NAME

ACCOUNT OPENING CHARGES

ANNUL CHARGES BENEFITS MAJOR COMPETITORS

MASTER COMMODITIES 60/- NIL

PERSONAL CARE

SMC GLOBAL,MANSUKH,RELIGARE, INDIA INFOLINE

KOTAK COMMODITIES SERVICES LTD. NIL NIL

BRAND, MARKET LEADER, RESEARCH, RISK MANAGEMENT

REFCO-SIFY,RELIGARE, MOTILAL OSWAL

ANAND RATHI NIL NIL

PORTFOLIO MANAGEMENT, ALERT SERVICE -

MOTILAL OSWAL COMMODITIES BROKERS PVT. LTD NIL

odin(12000 p.a)

RESEARCH BASED TRADING, TRAINED DEALER KOTAK, KARVY, INDIABULLS

INDIA INFOLINE 500 NIL

BRAND NAME,LOW A/C OP.CHARGES,NO CHARGE FOR ONLINE TRADING INDIABULLS, RELIGARE

USEC COMMODITIES LTD. NIL NIL - -

RELIGARE NIL NIL

HONESTY , SOFTWARE PROVIDED HAND TO HAND, GOOD RELATION, MINIMUM BROKERAGE ANGEL BROKING, ABHIPRA

ESCORTS SECURITIES NIL NIL

ALL INDIA OFFICES, ALERTS, TRANSPARENCY KOTAK, BONANZA, RELIGARE

ANGEL BROKING LTD. 100 NIL NA NA

BRICS SECURITIES NIL NIL NA NA

6

THE FOLLOWING TABLE SHOWS AN OVERVIEW OF PRESENT MARKET CONDITION

7

BONAZA PORTFOLIO LTD. 100 NIL

GOOD RESEARCH, GOOD BACK OFFICE, PROVIDE NATIONAL/INTERNATIONAL TRADE NA

INDIA BULLS 500 NIL  

INDIAINFOLINE, RELIGARE, SHAREKHAN

DB(international) 50 NILGOOD PERSONAL RELATION, FAITH NICHE MARKET

SUN COMMODITY & DERIVATIVE PVT. LTD. NIL NIL

GOOD SERVICES, PERSONAL ADVICE TO CUSTOMERS IN DIFFERENT MARKET CONDITION NICHE MARKET

RR COMMODITY BROKER 100 NIL

BRAND IMAGE, GOOD MEDIA RELATION, RESEARCH TIPS ON NDTV, ISUUE MAGAZINES

RELIGARE, MOTILAL OSWAL, RLIANCE IN FRANCHISEE

ALTOS ADVISORY SERVICES LTD.

VARIOUS PLANS NIL MARKETING,PREDICTIONS INDIABULLS

ANGEL COMMODITIES

100 per exchange NIL

RESEARCH REPORTS, ALERTS, TRADING TRAINING TO CUSTOMERS

RELIGARE, ABHIPRA

INDIA INFOLINE COMMODITIES PVT. LTD. 500 NIL

FREE SOFTWARE, ROUND THE CLOCK SERVICE, TIPS AND ALERTS, DEDICATED RM

KOTAK, LOCAL BROKERS

MAHESWARI ENTERPRISES NIL NIL RESEARCH TEAM NA

ABHIPRA CAPITAL LTD. 50 NIL

LIBERAL IN MARGIN, PERSONAL CARE

SUB BROKER, REGIONAL BROKER

GEOJIT FINANCIAL LTD.

300(ONLINE)

TIPS & ALERTS, RESEARCH TEAM

COMMODITY CONTROL

ALANKIT IMAGINATIONS LTD. 50 NIL

TRANSPARENCY, IMMEDIATE PROFIT TRANSFER, LOW BROKERAGE

ABHIPRA, INDIABULLS

8

OBJECTIVE OF THE STUDY

In one years time commodity futures markets have average daily volumes of more than Rs.4, 000 crores at NCDEX and MCX each and have surpassed that of the Bombay Stock Exchange (BSE) which have a volume of Rs.2, 500 crores. The total volume of commodity futures trading in the country has reached Rs. 1, 90,000 crores ($44 billion) during the first quarter of the current fiscal, showing a significant growth of 800 percent as per the statistics by FMC.

So the objective of our study was to find out the Growth Prospect Of Indiabulls In Commodity Market. In our study we have tried to know the present condition of commodity market in Delhi region by gathering information from various brokerage firms and investors and non-investors

Our main objective of the study was to know the present scenario of commodity market and what is the future growth prospect of Indiabulls as a major market player in the same.

9

RESEARCH METHODOLOGY

In our study we conducted a market research to gather information regarding commodity market. We have relied upon both Primary and Secondary data for our study.

We gathered secondary data mainly from various website and for Primary data we have used questionnaire for gathering information.

We have prepared two different questionnaires i.e. Brokers and Customers. We have taken a sample of 30 major Brokerage firm situated in various parts of Delhi to study the present market condition, brokerage charges, various product and services offered by brokerage firm, there average daily turnover etc.

In case of customers we have taken a sample size of 100 people randomly from major commercial area of Delhi. The various places which we have visited includes Lawrence road, Kucha mahajani(chandni chowk) Janakpuri district centre, connaught place, Netaji subhash place, Central market Punjabi bagh, vasant kunj etc.

After the field work of getting the questionnaires filled, key entry was done in MS-EXCEL. The information gathered were classified in excel sheet and and frequency table is prepared for each question of our questionnaire.

These information/data is depicted in pie chart and doughnut, which is very easy to understand and depicts the clear picture of our findings..

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MAIN REPORT

INTRODUCTION

What Are Commodities?

Commodities are broadly defined as natural resources, chemicals and physical products you can touch, taste, smell, grow, mine, consume or deliver.

From their origins in the 1800s until the 1970s, futures markets and commodities markets were one in the same; financial futures are a modern-day invention. To confuse things slightly, today the term "commodity" is still often used as a broad industry term describing all futures contracts, including financials. For example, "commodity trading advisor" is used to define an individual or firm who operates a managed futures program, even though many of them trade exclusively in the financial futures markets such as interest rates or stock indexes.

Physical commodities are the roots of the futures industry and still play a valuable role in the global marketplace, even though the most highly-traded futures today are financial contracts such as U.S. Treasury notes, Eurodollars, and Standard & Poor's 500®.

The most popular physical commodities contracts can be broken down into several broad categories: metal, energy, grains, livestock, and food and fiber. These are not paper assets, and in general, are produced and consumed at a price based on the forces of supply and demand.

A commodity futures contract represents an agreement to buy or sell a specific type and grade of commodity for delivery at a specific time in the future at an agreed upon place at a market-determined price. In reality, commodity futures rarely lead to the delivery of an actual product, because the contract positions are typically closed out before the delivery date.

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HISTORY OF COMMODITIES EXCHANGES

The futures markets were developed initially to help agricultural producers and consumers manage the price risks they faced harvesting, marketing and processing food crops each year. The modern futures industry still serves those markets.

The world's oldest established futures exchange, the Chicago Board of Trade, was founded in 1848 by 82 Chicago merchants. The first of what were then called "to arrive" contracts were flour, timothy seed and hay, which came into use in 1849. "Forward" contracts on corn came into use in 1851 and gained popularity among merchants and food processors.

Meanwhile, what is now the nation's largest futures exchange, the Chicago Mercantile Exchange, was founded as the Chicago Butter and Egg Board in 1898. At that time, trading was offered in - you guessed it - butter and eggs.

Other prominent U.S. commodities exchanges were formed before or just after the turn of the century, and also had their roots in agriculture. At one time, you could trade on the National Metal Exchange, the Rubber Exchange of New York, the National Raw Silk Exchange, and the New York Hide Exchange. Small exchanges like these ultimately merged to become the exchanges we have today.

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FUTURES TRADING IN COMMODITY EXCHANGES AND FORWARD MARKETS COMMISSION .

1. Futures trading perform two important functions of price discovery and price risk management with reference to the given commodity. It is useful to all segments of the economy. It is useful to the producer because he can get an idea of the price likely to prevail at a future point of time and therefore can decide between various competing commodities, the best that suits him. It enables the consumer in that he gets an idea of the price at which the commodity would be available at a future point of time. He can do proper costing and also cover his purchases by making forward contracts. Futures trading is very useful to the exporters as it provides an advance indication of the price likely to prevail and thereby help the exporter in quoting a realistic price and thereby secure export contract in a competitive market. Having entered into an export contract, it enables him to hedge his risk by operating in futures market.

2. Forward/futures trading involves a passage of time between entering into a contract and its performance making thereby the contracts susceptible to risks, uncertainties, etc. Hence the need for the regulatory functions to be exercised by the Forward Markets Commission (FMC), which is the Regulator established under the provisions of Forward Contracts (Regulation) Act, 1952.

3. At present, futures trading is permitted in 103 commodities (Annexure-I). Apart from the three national level Exchanges, there are 21 other regional Exchanges recognised for commodity futures trading (Annexure-II). The trading volume and value in the past two years have increased manifold. During 2005-06, permission to trade in furnace oil, crude oil, mentha oil, PVC, polypropylene and natural gas was granted. Onion has also been notified for futures trading on 26.4.2006.

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4.. Overall growth

During 2005-06, the total value of commodity futures trade was Rs. 21.34 lakh crore as compared to Rs. 5.71 lakh crore during 2004-05 showing an increase of 274%. The volume of trade has also gone up to 6685 lakh tonnes during 2005-06 as compared to 1942 lakh tonnes during 2004-05. The trade volume has also gone up by 244% during 2005-2006.

5. The trading volume and value have increased manifold after the three national –level Exchanges were set up. Department of Consumer Affairs granted recognition to these Exchanges as indicated below:National Multi-Commodity Exchange of India, Ahmedabad (NMCE), started trading in November 2002 and the other two national Exchanges viz. Multi Commodity Exchange of India Ltd., Mumbai (MCX) and National Commodity and Derivatives Exchange Ltd., Mumbai (NCDEX) started trading in November 2003. The following table shows the increase in volume and value of trading in commodity futures since the setting up of these national Exchanges.

Commodity Futures Trading Value and Volume since 2001-02

  2002-03 2003-04 2004-05 2005-06

Volume of Trading (in lakh tonnes)

314.4(44.4)*

492.9(57.7)*

1,942.1(294)*

6,685.09(244)*

Value of trading (Rs. in crore)

66,530(92.8)*

1,29,363(94.4)*

5,71,759(341.9)*

21,34,471(274)*

*Figures in parenthesis are % change over previous year.

6. The commodity futures market is regulated under the provisions of the Forward Contracts (Regulation) Act, 1952. In order to include some new features that are in tune with the latest developments in the commodity futures market, this Department has proposed amendments in the Forward Contracts (Regulation) Act, 1952. Accordingly, Forward Contracts (Regulation) Amendment Bill, 2006 has been introduced in the Lok Sabha on 21.03.2006.

7.Future prospect

Future prospect of commodity derivative trading is upbeat. Futures market size (both commodities and securities) relative to Gross Domestic Product (GDP at current prices) in the US is about 90%, in China about 85%, and in Brazil about 200%. Commodities derivatives trade value relative to GDP (at current price) in India was 5.81 % in 2003-04,

14

20.14% in 2004-05 and it has gone up to 66 % during 2005-06. The commodity futures trade has taken a big leap in the past two years. Likely participation of Banks, Mutual Funds and Foreign Institutional Investors along with introduction of options trading after amendments to FCR Act, 1952, will boost the commodity futures trading further in the coming years.

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COMPARATIVE ANALYSIS OF COMMODITY AND EQUITY MARKET

Factors Commodity Markets Equity Markets

Percentage Returns

Gold gives 10-15 % returns on the conservative basis.

Returns in the range of 15-20 % on annual basis.

Initial MarginsLower in the range of 4-5-6% Higher in the range of 25-40%

Arbitrage Opportunities

Exists on 1-2 month contracts. There is a small difference in prices, but in case of commodities, which is in large tonnage it makes a huge difference. Significant Arbitrage Opportunities exists.

Price Movements

Price movements are purely based on the supply and demand.

Prices movements based on the expectation of future performance.

Price Changes

Price changes are due to policy changes, changes in tariff and duties.

Price changes can also be due to Corporate actions, Dividend announcements, Bonus shares / Stock splits

Future Predictability

Predictability of future prices is not in the control due to factors like Failure of Monsoon and Formation of El-ninos at Pacific.

Predictability of futures performance is reasonably high, which is supplemented by the History of management performance.

Volatility Lower Volatility Higher Volatility

Securities Transaction Act Application

Securities Transaction Act is not applicable to commodity futures trading.

Securities Transaction Act is applicable to equity markets trading.

** Nation-wide Multi Commodity Exchange

Annexure-I

16

LIST OF COMMODITIES NOTIFIED UNDER SECTION 15 OF THE F.C.(R.) ACT 1952.

Sl.No COMMODITY

Fibres and Manufactures

1 Art Silk Yarn

2 Cotton Cloth

3 Cotton pods

4 Cotton Yarn

5 Indian Cotton (Full pressed, half pressed or loose)

6Jute goods (Hessian and Sackings and cloth and /or bags, twines and/or yarns mfd by any of the mills and/or any

other manufacturers of whatever nature made from jute)

7 Kapas

8 Raw Jute (including Mesta)

9 Staple Fibre Yarn

FOODGRAINS AND PULSES

10 Arhar Chuni

11 Bajra

12 Barley

13 Gram

17

14 Gram Dal

15 Guar

16 Jowar

17 Kulthi

18 Lakh (Khesari)

19 Maize

20 Masur

21 Moth

22 Mung

23 Mung Chuni

24 Mung dal

25 Peas

26 Ragi

27 Rice or Paddy

28 Small Millets (Kodan Kulti, Kodra, Korra, Vargu, Sawan, Rala, Kakun, Samai, Vari & Banti)

29 Tur Dal (Arhar Dal)

30 Tur(Arhar)

31 Urad (Mash)

18

32 Urad dal

33 Wheat

Metals

34 Copper, Zinc, Lead or Tin

35 Gold

36 Silver

37 Silver Coins

Oilseeds and Oils

38 Celeryseed

39 Copra Oil/Coconut Oil

40 Copra Oilcake/Coconut Oilcake

41 Copra/Coconut

42 Cottonseed

43 Cottonseed Oil

44 Cottonseed Oilcake

45 CPO Refined

46 Crude Palm Oil

47 Crude Palm Olive

19

48 Groundnut

49 Groundnut Oil

50 Groundnut Oilcake

51 Linseed

52 Linseed oil

53 Linseed Oilcake

54 Rapeseed Oil/Mustard Oil

55 Rapeseed Oilcake/ Mustardseed Oilcake

56 Rapeseed/Mustardseed

57 RBD Palmolein

58 Rice Bran

59 Rice Bran Oil

60 Rice Bran Oilcake

61 Safflower

62 Safflower Oil

63 Safflower Oilcake

64 Sesamum (Til or Jiljilli)

65 Sesamum Oil

20

66 Sesamum Oilcake

67 Soy meal

68 Soy Oil

69 Soybean

70 Sunflower Oil

71 Sunflower Oilcake

72 Sunflower Seed

Spices

73 Aniseed

74 Betelnuts

75 Cardamom

76 Chillies

77 Cinnamon

78 Cloves

79 Coriander seed

80 Ginger

81 Methi

82 Nutmegs

21

83 Pepper

84 Turmeric

Others

85 Camphor

86 Castor seed

87 Chara or Berseem (including charaseed or berseemseed)

88 Crude Oil

89 Gram Husk (Gram Chilka)

90 Gur

91 Khandsari Sugar

92 Polymer

93 Potato

94 Rubber

95 Seedlac

96 Shellac

97 Sugar

98 Furnace Oil

99 Ethanol

22

100 Coking Coal

101 Electricity

102 Mentha oil

103 Natural Gas

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Annexure-II

Exchanges and Commodities in which futures contracts are traded.

   No. Exchange COMMODITY

1. India Pepper & Spice Trade Association, Kochi (IPSTA) Pepper (both domestic and international contracts)

2. Vijai Beopar Chambers Ltd.,

Muzaffarnagar Gur, Mustard seed

3. Rajdhani Oils & Oilseeds Exchange Ltd., Delhi Gur, Mustard seed its oil & oilcake

4. Bhatinda Om & Oil Exchange Ltd.,

Bhatinda Gur

5. The Chamber of Commerce, Hapur Gur , Potatoes and Mustard seed

6. The Meerut Agro Commodities Exchange Ltd., Meerut Gur

7. The Bombay Commodity Exchange Ltd., Mumbai Oilseed Complex

* Castor oil international contracts

8. Rajkot Seeds, Oil & Bullion Merchants Association, Rajkot Castor seed, Groundnut, its oil & cake, cottonseed, its

oil & cake, cotton (kapas) and RBD palmolein.

9. The Ahmedabad Commodity Exchange, Ahmedabad Castorseed, cottonseed, its oil and oilcake

10. The East India Jute & Hessian Exchange Ltd., Calcutta Hessian & Sacking

11. The East India Cotton Association Ltd., Mumbai Cotton

12. The Spices & Oilseeds Exchange Ltd., Sangli. Turmeric

13. National Board of Trade, Indore

Soya seed, Soyaoil and Soya meals.

Rapeseed/Mustardseed its oil and oilcake  and RBD

Palmolien

14. The First Commodities Exchange of India Ltd., Kochi  Copra/coconut, its oil & oilcake

15. Central India Commercial Exchange Ltd., Gwalior Gur and Mustard seed

16. E-sugar India Ltd., Mumbai Sugar

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17 ** National Multi-Commodity Exchange of India Ltd., Ahmedabad Several Commodities (Please see the site of the

Exchange at www.nmce.com)

18 Surendranagar Cotton Oil & Oilseeds , Surendranagar Cotton, Cottonseed, Kapas

19 E-Commodities Ltd., New Delhi Sugar (trading yet to commence)

20** National Commodity & Derivatives Exchange Ltd., Mumbai Several Commodities (Please see the site of the

Exchange at www.ncdex.com)

21** Multi Commodity Exchange  Ltd., Mumbai Several Commodities (Please see the site of the

Exchange at www.mcxindia.com)

22 Bikaner commodity Exchange Ltd., Bikaner Mustard seed its oil & oilcake, Gram. Guar seed. Guar

Gum

23 Haryana Commodities Ltd., Hissar Mustard seed complex

24 Bullion Association Ltd., Jaipur Mustard seed Complex

Who Participates in Commodities Markets?

There are two basic types of participants in the commodities markets - hedgers and speculators. The hedgers are those seeking to minimize and manage price risk, while speculators are those willing to take on risk in the hope of making a profit.

As an example of a hedger, you might be a large corn farmer wanting to sell your product at the highest possible price. However, unpredictable weather may create risk, as well as excess supply that could drive prices down. You could take a short position in corn futures, and if prices fall, you could then buy back the futures at a lower price than you previously had sold them. This would help you offset the loss from your cash crop and help minimize your risk. Of course, if prices rose, you'd lose money on the futures transaction, but the idea is to use futures as a hedge.

The speculator could take the opposite side of this futures transaction. That participant would bear the risk that prices are going to rise in hopes of generating a profit on the long futures position. Most likely, this type of speculator has no actual stake in the business, other than buying and selling in the futures market. A commercial food producer in need of the raw product (a breakfast cereal processor, for example) may also take the other

25

** National Commodity Exchange

side of the short hedger's trade to offset the risk of paying higher prices for the commodity. If the price of corn rises, the commercial food producer could still capture a profit from the futures position, even though he'd be paying more for the actual corn.

An individual trader who commits his or her own capital to act as speculator on a particular exchange is known as a local. Typically, these individuals provide market liquidity by constantly buying and selling throughout the trading session and are viewed as important participants in the market by shouldering risk. While the term local has been used to designate those trading in the open-outcry markets, this era of electronic trading is making the phrase a little obsolete. However, their function as liquidity providers is equally important in electronic markets. The Commodity Futures Trading Commission defines this new breed of electronic traders "E-locals," but they are often more simply known as independent traders.

How Are Commodities Traded?

In all futures markets, trading decisions are made in two ways - fundamental or technical, although many traders use a combination of both.

Fundamental analysis includes all factors that influence supply and demand. For the physical commodities markets, fundamental factors include weather and geopolitical events in producing countries - outside forces that influence price action. For the financial futures markets, factors such as Federal Reserve actions and economic reports are among fundamental forces affecting prices.

Technical analysis is based strictly on inside market forces. It involves tracking various price patterns that occurred in the markets in the past. Analysts focus on a variety of time frames, and trading decisions are based on past tendencies with the idea these price patterns tend to repeat themselves. Technical analysis involves a wide range of techniques, and a variety of market indicators are studied including volume, open interest, and momentum. Each individual analyst has his favorite approach - technical analysis is just as much art as it is science.

26

COMPANY PROFILE

Indiabulls Securities Ltd. was taken under reference to analyze the securities of various

sectors. It is a subsidiary of Indiabulls Financial Services Ltd., and is one of India’s

largest brokerage and distribution house. Over the years Indiabulls Securities has been

one of the leading investment service providers catering to the needs of various investor

categories both institutional and non-institutional.

The Private client group (PCG) of the Company provides value added investment

advisory services to high net worth individuals, NRI investors, trusts, corporate and

Banks. The investment product range offered by PCG covers equity investment and

equity trading, equity derivatives, portfolio management, IPOs and Mutual funds. The

Company has a full fledged research division involved in macro economic studies,

sectoral research and company specific equity research combined with a strong and well

networked sales force which helps deliver current and up to date market information and

news.

Indiabulls Securities Ltd., Depository Participant with National Securities Depository

Limited (NSDL) and Central Depository Services Ltd. (CDSL) provides dual benefit

services wherein the investors can use the brokerage services of the Company for

executing the transactions and the depository services for settling them.

27

Under the Portfolio Investment Scheme offered by the Company, a highly competent

team comprising of Equity Strategist, a Portfolio Manager and a team of equity, technical

and derivatives analysts manages the funds of the investors.

Indiabulls Equity Analysis - the retail arm of Indiabulls Securities Ltd., offers online

(through www.indiabulls.com) and offline services, its well-researched expertise and

financial products to the retail investors.

Indiabulls Securities Ltd., also an Approved Intermediary under the Securities Lending

Scheme, 1997, facilitates clients to borrow and lend securities.

Indiabulls Securities Ltd, one of India's largest brokerage and distribution house is a

100% subsidiary of Indiabulls Financial Services Ltd.

Indiabulls Financial Services Ltd. 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 82nd position in the list of most valuable companies in

India has a market capitalization of approx US $ 800 million. The consolidated net worth

of the company is approx US $ 400 million.

Three Engineers from IIT Delhi have promoted Indiabulls. The company strives for rapid

growth in profits, leadership in the retail marketplace and better returns to its

shareholders.

28

Indiabulls, along with its subsidiary companies, offer consumer loans, brokerage and

depository services, personal loans, home loans and other financial products and services

to the retail markets.

Indiabulls Resources Ltd, a 100 per cent subsidiary of Indiabulls Financial Services

Ltd., has been established with the objective of evolving as an independent oil company

over time. The immediate short-term goal is to partner with oil companies who are

willing to come to India and bid in the current NELP-6 round.

Through its group companies, Indiabulls is also engaged in real estate development. The

company is in the process of developing modern commercial complexes in the heart of

Mumbai.

Indiabulls Estates Pvt Ltd. the real estate arm of Indiabulls Financial Services, will set

up an integrated township spread across 100 acres in Sonepat, 15 km from Delhi.

29

PRODUCTS OFFERED

Indiabulls Securities offers all non-banking financial products.

Indiabulls Securities Ltd. has two arms namely Broking and Distribution. Under

distribution come equity trading, commodity trading and D\P services. Under distribution

come primary market applications, insurance, mutual funds and portfolio management

services.

30

Indiabulls Securities Ltd.

Broking Distribution

Equity Trading

Commodity Trading

D\P Services

Insurance

Mutual Fund

IPO

Portfolio Management Services

BUSINESS PROCESS AT INDIABULLS SECURITIES

31

Client Data

Research Data

Information System

ISL DealerInterface

Relationship Manager

Client

NSE /BSE

Indiabulls securities Ltd..

ANALYSIS:-

A COMPARATIVE ANALYSIS AMONG VARIOUS MARKET PLAYER

NAME

ACCOUNT OPENING CARGES

ANNUAL CHARGES BENEFITS MAJOR COMPETITORS

MASTER COMMODITIES 60/- NIL PERSONAL CARE

SMC GLOBAL,MANSUKH,RELIGARE, INDIA INFOLINE

KOTAK COMMODITIES SERVICES LTD. NIL NIL

BRAND, MARKET LEADER, RESEARCH, RISK MANAGEMENT

REFCO-SIFY,RELIGARE, MOTILAL OSWAL

ANAND RATHI NIL NILPORTFOLIO MANAGEMENT, ALERT SERVICE -

MOTILAL OSWAL COMMODITIES BROKERS PVT. LTD NIL

odin(12000 p.a)

RESEARCH BASED TRADING, TRAINED DEALER KOTAK, KARVY, INDIABULLS

INDIA INFOLINE 500 NIL

BRAND NAME,LOW A/C OP.CHARGES,NO CHARGE FOR ONLINE TRADING INDIABULLS, RELIGARE

USEC COMMODITIES LTD. NIL NIL - -

RELIGARE NIL NIL

HONESTY , SOFTWARE PROVIDED HAND TO HAND, GOOD RELATION, MINIMUM BROKERAGE ANGEL BROKING, ABHIPRA

ESCORTS SECURITIES NIL NIL

ALL INDIA OFFICES, ALERTS, TRANSPARENCY KOTAK, BONANZA, RELIGARE

ANGEL BROKING LTD. 100 NIL NA NA

BRICS SECURITIES NIL NIL NA NA

BONAZA PORTFOLIO LTD. 100 NIL

GOOD RESEARCH, GOOD BACK OFFICE, PROVIDE NATIONAL/INTERNATIONAL TRADE NA

32

INDIA BULLS 500 NIL

INDIAINFOLINE, RELIGARE, SHAREKHAN

DB(international) 50 NILGOOD PERSONAL RELATION, FAITH NICHE MARKET

SUN COMMODITY & DERIVATIVE PVT. LTD. NIL NIL

GOOD SERVICES, PERSONAL ADVICE TO CUSTOMERS IN DIFFERENT MARKET CONDITION NICHE MARKET

RR COMMODITY BROKER 100 NIL

BRAND IMAGE, GOOD MEDIA RELATION, RESEARCH TIPS ON NDTV, ISUUE MAGAZINES

RELIGARE, MOTILAL OSWAL, RLIANCE IN FRANCHISEE

ALTOS ADVISORY SERVICES LTD.

VARIOUS PLANS NIL MARKETING,PREDICTIONS INDIABULLS

ANGEL COMMODITIES

100 per exchange NIL

RESEARCH REPORTS, ALERTS, TRADING TRAINING TO CUSTOMERS RELIGARE, ABHIPRA

INDIA INFOLINE COMMODITIES PVT. LTD. 500 NIL

FREE SOFTWARE, ROUND THE CLOCK SERVICE, TIPS AND ALERTS, DEDICATED RM

KOTAK, LOCAL BROKERS

MAHESWARI ENTERPRISES NIL NIL RESEARCH TEAM NA

ABHIPRA CAPITAL LTD. 50 NIL

LIBERAL IN MARGIN, PERSONAL CARE

SUB BROKER, REGIONAL BROKER

GEOJIT FINANCIAL LTD.

300(ONLINE)

TIPS & ALERTS, RESEARCH TEAM

COMMODITY CONTROL

ALANKIT IMAGINATIONS LTD. 50 NIL

TRANSPARENCY, IMMEDIATE PROFIT TRANSFER, LOW BROKERAGE

ABHIPRA, INDIABULLS

33

Questionnaire for Brokers

Q1.HOW LONG HAVE YOU BEEN IN COMMODITY MARKET?

12%

27%

19%

42%a(0-1yr)

b(1-2 yrs)

c(2-3 yrs)

d(3-4 yrs)

It was found that around 42 per cent of the respondents are in the market from the starting itself. More than half (58 per cent) have either recently got the license or have recently started the trade. Big broking houses are among the new starters. Earlier it was dominated by many marginal players.

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Q2. WHICH EXCHANGE DO YOU PREFERABLY TRADE IN?

45%

47%

4%4%

a(MCX)

b(NCDEX)

c(NMCEX)

d(OTHERS)

It was found that 92 per cent of the trade takes place in two exchange i.e. MCX & NCDEX only. Other regional exchanges comprise only a minor part of the trade.

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Q3. WHAT IS THE DAILY VOLUME OF TRADE OF YOUR ORGANIZATION?

10%

10%

14%

19%

47%

a(<10Lac)

b(10-50 Lacs)

c(.5-1Cr)

d(1-10Cr)

e(>10 Cr)

Some astonishing facts came to our notice that even the small players have a daily trade volume of more than 10 crore rupees. It consist the 47 per cent of our respondents. Some broking firms considered big in the field of equity are having daily trade volume of less than 1 crore but it may be due to the fact that they have recently started dealing in commodities.

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Q4. MOSTLY YOUR CUSTOMERS ARE :-

27%

13%

13%11%

19%

17%

a(Businessman)

b(Professionals)

c(Serviceholders)

d(Jewelery)

e(Manditraders)

f(HNIs)

People dealing in commodities comes mostly from Business class, Mandi Traders and HNIs. It constitutes the total of 63 per cent of the people investing in commodities. Rest forms only 37 per cent of the investors.

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Q5. WHAT ARE THE AREAS IN WHICH YOUR CLIENTS FREQUENTLY TRADE?

41%

24%

35%

0% a(Preciousmetal)

b(Base metal)

c(Agro base)

d(others)

Most of the investors(41 per cent) like to trade in Precious metal i.e. Gold, Silver etc. Than comes the agro based commodities(35 per cent).

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Q8. WHAT IS YOUR TRADING PLATFORM ?

68%

32%

a(online)

b(offline)

68 per cent of the trade is done online and only 32 per cent of the clients go for offline trade. But almost every broker provides both the platforms for trade.

39

Questionnaire for customers

The customers were randomly selected and the responses we got from them are depicted in the form of pie-chart below.

Q1. DO YOU TRADE IN COMMODITIES?

18%

82%

a(Yes)

b(No)

Only 18 per cent of the respondents were investing in commodity market and almost all of them were investing in shares too. A major chunk were a non-investor in commodity market. So the prospect of growth is large.

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Q2. YOU ARE AVAILING THIS SERVICE WITH WHICH BROKING FIRM?

8%15%

0%

15%62%

a(share khan)

b(Indiabulls)

c(Karvy)

d(Religare)

e(others)

The major players of equity market do not has much share among the investors in commodity market. Most of them (62 per cent) trade with broking firms other than the big players in equity market.

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Q3.SINCE HOW LONG HAVE YOU BEEN INVESTING IN COMMODITY MARKET?

40%

20%

13%

27%a(0-6 mth)

b(6mth-1yr)

c(1-2 yrs.)

d(2-3yrs)

40 per cent of the respondents investing in commodity market are new to this market. They are in this market for last 6 months only. 73 per cent have been trading for last two years. Only 27 per cent have been in this market for more than two years.

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Q4. HOW FREQUENTLY DO YOU TRADE?

27%

0%

37%

36% a(Every day)

b(Every week)

cOnce a month)

d(Occassionally)

Only 27 per cent of the respondents invest in this market everyday. Rest invest either once a month or occassionly.

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Q5. WHAT IS YOUR PURPOSE OF TRADING?

14%

72%

14%

a(Hedging)

b(Speculation)

c(Arbitrage)

The major reason for trade in commodity market is speculation(72 per cent).Only 28 per cent of the respondents do the trade for the purpose of arbitrage and hedging.

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Q6. HOW MUCH DO YOU INVEST GENERALLY?

57%

0%14%

29%a(<3 Lac)

b(3-5Lac)

c(5-10 Lac)

d(>10Lac)

Most of the traders are small and invest less than 3 Lac in commodity market (57 per cent). 29 per cent of the investors are investing more than 10 Lac in this market.

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Q7. WHAT ARE YOUR OTHER MODES OF INVESTMENT?

26%

47%

11%

16%

a(MFs)

b(Shares)

c(Bonds)

d(Others)

Of the investors 89 per cent are also investing in shares, MFs and Bonds. Only 11 per cent of them are investing in other modes of investment.

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Q8. DO YOU TRADE FOR SPECULATION?

80%

20%

a(Yes)

b(No)

80 per cent of the respondents investing in commodity market are investing for speculation. Only 20 per cent are investing for the reason other than speculation.

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Q9. WHOM DO YOU PREFERABLY TRADE WITH?

42%

29%

29%

a(National broker)

b(Regional broker)

c(Both)

42 per cent of the respondents prefer to trade with national broker and only 29 per cent prefer to trade with regional brokers. Others trade with both of them.

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Q10. ARE YOU SATISFIED WITH THE SERVICES OF YOUR PRESENT BROKER?

36%

50%

7%0%

7% a(Highlysatisfied)

b(Satisfied)

c(Average)

d(Unsatisfied)

e(Highlyunsatisfied)

86 Per cent of the respondents are satisfied with their broker. So it can be said that brokers are providing good services to the clients.

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Q11. WHAT ARE THE PROBLEMS DO YOU FACE WHILE TRADING IN COMMODITIES?

10%

60%

20%

10%

a(Poor service)

b(Slow trading)

c(Withdrawal)

d(Others)

Slow trading process was the major problem faced by the investors.60 per cent of the respondents has marked it as a problem.

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Q12. HOW DO YOU ACCESS INFORMATION REGARDING COMMODITY MARKET?

15%

15%

37%

9%

18%6%

a(News Paper) b(Magazine) c(Internet)

d(Television) e(Broker) f(Friends)

Internet is the most preferred source of information on commodity market.37 per cent prefer it as the most reliable source. 18 per cent rely on their brokers and others rely on other sources of information i.e. newspaper, magazines TV and friends.

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Q13. WHERE DO YOU MAKE YOUR INVESTMENT?

22%

21%

7%

25%

4%

21%

a(share)

b(MFs)

c(Bonds)

d(F.D)

e(Jewelery)

f(others)

Among the respondents not investing in commodity market 47 per cent prefer either shares or FDs with banks as their best mode of investment. Some of the respondents even like to invest in jewelery. MFs and other modes of investment (i.e. Real Estate) has equal share (21 per cent)

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Q14. WHY DON’T YOU INVEST IN COMMODITY MARKET?

5%

60%5%4%

26% Less popularity

Lack of knowledge

Never been convinced

less volatility

others

The major reason for not investing in the commodity market was lack of knowledge (60 per cent). Those who have marked lack of knowledge as the reason has also said that they were willing to invest in commodity market if they are properly guided.

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Q15. WHAT DO YOU LOOK FOR IN YOUR INVESTMENT?

37%

44%

10%9%

a(High return)

b(Lesser risk)

(c)liquidity

(d) Other

44 per cent of the respondents prefer the mode of investment which has lesser risk and 37 per cent go for higher return and are willing to take risk for that.

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Q16. DO TRADE IN SHARES MARKET?

43%

57%

a(Yes)

b(No)

57 per cent of the respondents were already investing in the share market but were not investing in commodity market. Remaining were not investing even in shares due to its volatility.

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Q17. ARE YOU PLANNING TO INVEST IN COMMODITY MARKET?

55%

45%a(Yes)

b(No)

55 per cent of the respondents were of the view that they can invest in commodity market if they come to know about the growth prospects and are convinced to invest in commodity market.

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FINDINGS

1. It is found that 82% of our respondents were non-investor and only 18% were investing in Commodity market.

2. 62% of our respondents were working with various firms i.e. ICICI, Meril Lynch etc.than 15% were working with Indiabulls and Religare.8% were with Sharekhan.

3. Those respondents who were investing in commodity market were relatively new as the 40% of them were working for 0-6 months.27% were working for 6m-14yrs.20% were those who were working for 2-3yrs or more.

4. 37% of our respondents were trading once a month followed by occasional investor which were 36%.daily traders were 27% of our total respondents.

5. On asking the purpose of trade 72% of our respondents have said they trade for speculation and other remaining respondents said they trade for hedging and speculation(14% each)

6. 57% of our respondents were investing less than 3 lacs and 29% were those investing above 10 lacs.

7. Majority of our respondents have said that (47%) there other mode of investment includes shares thereafter followed by mutual Funds (26%)

8. To know the importance of speculation on Commodity trading specifically asked our respondents whether they trade for speculation or not.80% have said they are trade for speculation.

9. National broker was preferred over regional broker but 29% have said they do trade with both.

10. To check the satisfaction level of our respondents, we have asked them to choose option based on Likert scale 50% have said they are satisfied only 36% have said that they are highly satisfied.

11. In our study we have observed that major problem faced by customer was slow trading process. Other major problem faced by them were of cash withdrawal, poor service and others.

12. It was observed that 37% of our clients access information regarding commodity market through internet. Magazine, broker and newspaper were other source of information having 16% respondent each.

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13. We have asked non investors about their modes of investment and 25% have said that they opt for Fixed Deposit, shares were second major investment (22%). A good number of respondents have said MFs as a good investment (21%). In others section property and stock in trade was cited as a good option for investment

14. We put a question about reason for not investing in commodity market and we have found that lack of knowledge was a major hindrance in their investment. 15.We have asked our respondents about their expectation from their

Investment i.e what do they look for in their investment 44% have given Priority for lesser risk followed by 37% looking for high return.

16. In our question we have tried to know about non investors in commodity market , wether they trade in shares? In its response 43% have said that they trade in shares and 57% were non investors.

17. During our study we have tried to investigate whether they are planning to invest in commodity market 55% have said that they are willing to invest in commodity market which was a good sign and shows growth prospect in the same.

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RECOMMENDATION

In our research we come to know that in delhi region major players are trying to establish there shop in commodity trading. Motilal oswal has started its commodity trading for last 3-4 months; Religare is opening a new branch for commodity trading at Nehru place. UTI has also opened there office dedicated to commodity trading. Angel broking, Religare has opened their branch at Lawrence road which is hub of mandi traders.

So, indiabulls should also open there branches at these location to tap the mandi traders and mandi brokers.

During our visit to places like Lawrence road, chandni chowk many early commodity investors have said that MCX and NCDEX have became very speculative and people are incurring heavy losses. In kucha mahajani jewelers have lost roughly 2000 cr in commodity trading till date. They have blamed these exchanges for not giving delivery of gold if prices drop very low. So they are very particular about taking delivery of gold and silver.

Indiabulls should take care of this trading process and should make proper arrangement so that his client can also take delivery of commodities. Most of the broking firm have said that delivery of commodity forms very small part of total trading. But kotak commodities said that their clients take delivery quite often.

On an average the brokerage firms charge 0.05 for intraday and .5 for delivery as brokerage. But every one agreed that brokerage is negotiable and depends upon volume of trade.

Apart from big market players regional broking firms are also doing well. The best part with them is low set up cost, personal relationship and trust with there client and flexibility. They have there own niche market and on asking about competition from major market player they said their clients are high net worth individuals who work with them because of personal care and trust they have on them.

In our study a major reason for non investment in commodity market was lack of knowledge so indiabulls should conduct an awareness program so that new investors should come for commodity trading. A good percentage (55%) of our respondent have shown their willingness to invest in commodity market if proper information is provided to them.

A good research team is must to succeed in long run so it is recommended that indiabulls should create its own research team to analyze commodity market. In our research we came along many such brokerage firm who issues there own reports on commodity i.e. RR Capital, they issue a monthly magazine named “Investment monitor” which is a complete diet not only on commodity market but on MFs, Equity also. They have there own research team and analysts who provide valuable information to their clients time to time.

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Indiabulls can also start its own journal on commodity market as well as share market as this will be good for company in building trust among clients.

Many of our respondents(investors & non-investors) have said that apart from shares they also invest in MFs. Indiabulls can endeavor in the same as a good number of people are investing in MFs.

It also came to our knowledge that different investors have different risk taking capacity. Some respondent have preferred high return and some have played safe and preferred lesser risk. So the company must provide portfolio management service taking into care the risk taking capacity of the customer.

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CONCLUSION

Commodity market is the next big thing in Indian economy. India's commodity futures markets witnessed a whopping 373 per cent increase in trade in value terms during the financial year 2005-06. Within a short span of three years its value of trade has reached Rs 2134471 cr and three national commodity exchange account for 94% of total value traded.

India has a great opportunity to attain global standing in commodity trading.Indian genius in this area is globally recognized. The best and brightestDerivatives traders in New York, Chicago, London, Hong Kong and otherPlaces are typically Indians.

Oppurtunities:

MCX is uniquely placed to chase a 600 billion US dollar or a 30 lakh croreRupee market opportunity.

Just four commodity categories can make this happen.

• Agricultural commodities have the potential to trade ten times theunderlying physicals of 30 billion US dollars.

• Bullion has the potential to trade twenty times the underlying physicalsof 8 billion US dollars.

• Edible oils have the potential to trade ten times the underlying physicalsof 5.4 billion US dollars.

• And metals have the potential to trade ten times the underlying physicalsof 2 billion US dollars.

In this context we can say that the commodity trading in India will grow in many fold and so the need for good commodity brokers. So Indiabulls, as a leading broking house, has a good future in commodity trading too.

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LIMITATIONS OF THE STUDY

Our research work “FUTURE AND GROWTH PROSPECT OF INDIABULLS IN COMMODITY MARKET” has some limitations which should be kept in mind while relying on our findings.

The commodity market comprises of 21 regional and 3 national commodity exchanges.The commodity market works through some national and several regional broking firms spread all over India. It was not possible for us to cover the whole population* so we have covered only Delhi region for our research purpose. We have conducted our research in two phases, in first phase we have covered thirty brokerage firm and in second phase we have covered hundred customers only.Our study has limited implication as our resources were limited and it covers only Delhi region

* Population here means the whole of broking firms and those people who are either investing or have the capability to invest in Financial Market.

APPENDICES (SAMPLE QUESTIONNAIRE)

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QUESTIONNAIRE

Q.1 DO YOU INVEST IN COMMODITY ?(IF NO GO TO NO.12)

a) Yes b) No

FOR INVESTORS:-

Q.2 YOU ARE AVAILING THE FACILITY OF WHICH BROKERING FIRM?

a) Share khan b) India bullsc) Karvy d) Religaree) Others,please specify___________________

Q.3 SINCE HOW LONG HAVE YOU BEEN INVESTING IN IN COMODITIES?

a) 0-6 mths b) 6 mnths – 1yrc) 1-2 yrs. d) 2-3 yrs.

Q.4 HOW FREQUENTLY DO YOU INVEST/TRADE?

a) Every day b) Every weekc) Once a month d) occasionally

Q.5 WHAT IS YOUR PURPOSE OF TRADING?

a) Hedging b) Speculationc) Arbitrage

Q.6 HOW MUCH DO YOU INVEST NORMALLY?

a) < 3lakhs b) 3-5 lakhsc) 5- 10 lakhs d) > 10 lakhs

Q.7 WHAT ARE YOUR OTHER MODES OF INVESTMENT?

a) Mutual Funds b) Sharesc) Bonds d) others, please specify

Q.8 DO YOU TRADE FOR SPECULATION?

a) Yes b) No

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Q.9 WHOM DO YOU PREFER TO TRADE WITH?

a) National broker b) Regional brokerc) Both

Q.10 ARE YOU SATISFIED WITH THE SEVICES OF YOURPRESENT BROKER?

a) Highly satisfied b) Satisfiedc) Average d) Unsatisfiede) Highly unsatisfied

Q.11 WHAT ARE THE PROBLEMS DO YOU FACE WHILE TRADING IN COMMODITY?

a) Poor service b) Slow trading processc) Withdrawal problemd) others, please specify __________________________

__________________________________________

Q.12 HOW DO YOU ACCESS INFORMATION REGARDING COMMODITY MARKET?

a) Newspaper b) Magazinesc) Internet d) Televisione) Broker f) Friends/Relatives

NON INVESTORS

Q.13 HOW DO YOU MAKE YOUR INVESTMENTS?

a) Shares b) MFsc) Bonds d) Fixed depositee) Jewelry f) others __________

Q.14 WHY ARE YOU NOT INVESTING IN COMMODITYMARKET?

a) Less popularity of Commodity marketb) Lack of knowledge of commodity marketc) Never convinced by anyoned) Lesser volatility

Q.15 WHAT DO YOU LOOK FOR IN YOUR INVESTMENT?

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a) High return b) Lesser riskc) Liquidity d) Other ______________

Q.16 DO YOU TRADE IN SHARE MARKET? IF YES WHY NOT IN COMMODITY MARKET?a) Yes b) No

Q.17 ARE YOU PLANNING TO INVEST IN COMMODITY MARKET?a) Yes b) No

PERSONAL DETAILS

NAME ___________________________________________

AGE_____________________ SEX ___________________

ADDRESS________________________________________

PH ______________________________________________

E-MAIL ID _______________________________________

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QUESTIONNAIRE FOR BROKERS

1. HOW LONG HAVE YOU BEEN IN COMMODITY MARKET?

a) 0-1yrs b) 1-2 yrsc) 2-3 yrs d) 3 yrs and above

2. WHICH EXCHANGE DO YOU PREFERABLY TRADE IN?

a) MCX b) NCDEXc) NMCE d) OTHERS………………..

3. WHAT IS THE WEEKLY VOLUME OF TRADE OF YOURORGANIZATION?

a) <10 Lacs b) 10-50Lacsc) 50 lacs- 1 crore d) 1- 10 croree) > 10 crore

4. MOSTLY YOUR CUSTOMERS ARE :-

a) Businessman b) Professionalsc) Service holders d) Jewelerse) Mandi Traders f) HNIs

5. WHAT ARE THE AREAS IN WHICH YOUR CLIENTS FREQUENTLY TRADE?

a) Precious Metal b) Base metalc) Agro base d) Others

6. WHAT ARE YOUR ACCOUNT OPENING CHARGES ?

_______________________________________________________

7. WHAT ARE YOUR ANNUAL MAINTENANCE CHARGE?(if any)

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_______________________________________________________

8. WHAT IS YOUR TRADING PLATFORM ?

a) Online b) Offline

9. WHAT IS YOUR BROKERAGE CHARGES ON?

a) Cash _________________________________b) Delivery ______________________________

10. WHY A CUSTOMER SHOULD OPEN AN ACCOUNT WITH YOU ? ( Enumerate his benefits)

a) ___________________ b) ______________________c) ___________________ d) ______________________

11. PLEASE RANK THE MAIN COMPETITORS IN YOUR SECTOR?

a) ____________________ b) _________________________c) ____________________ d) _________________________

12. PRODUCT OR SERVICE WHICH IS MOST POPULAR AMONG YOUR CUSTOMER?

______________________________________________________NAME OF THE ORGANISATION………………………………………

CONCERNED PERSON…………………………………………………

DESIGNATION………………………. PH……………………………

ADDRESS………………………………………………………………. E-MAIL ID ………………………………………………………………

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BIBLIOGRAPHY/REFERENCE

1. www.google.com

2. http://fcamin.nic.in

3. www.fmc.gov.in

4. www.valuenotes.com

5. www.commoditycontrol.com

6. www.moneycontrol.com

7. www.indiacommodity.com

8. www.wikipedia.org

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