Investors Preferences Towards Equity Indiabulls 2011

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INTRODUCTION

An investor is a party that makes an investment into one or more categories of

assets --- equity,debtsecurities , real estate,currency, commodity, derivatives such as

put and call options, etc. --- with the objective of making a profit.

An investor is a party that makes an investment into one or more categories of

assets --- equity,debtsecurities , real estate,currency, commodity, derivatives such as

put and call options, etc. --- with the objective of making a profit. The term investor

protection defines the entity of efforts and activities to observe safeguard and enforce

the rights and claims of a person in his role as an investor. This includes advice and

legal action. The assumption of a need of protection is based on the experience thatfinancial investors are usually structurally inferior to providers of financial services and

products due to lack of professional knowledge, information and/or experience.

A stock trader or a stock investor is an individual orfirm whobuys and sells

stocks in thefinancial markets. Many stock traders will tradebonds (and possibly other

financial assets) as well.Individuals or firms trading equity (stock) on the stock markets

as their principal capacity are called stock traders. Stock traders usually try to profit

from short-term price volatility with trades lasting anywhere from several seconds to

several weeks.

The stock trader is usually a professional. Persons can call themselves full or

part-time stock traders/investors while maintaining other professions. When a stock

trader/investor has clients, and acts as a money manager or adviser with the intention of

adding value to their clients finances, he is also called a financial advisoror manager.

In this case, the financial manager could be an independent professional or a large bank

corporation employee. This may include managers dealing with investment funds,

hedge funds, mutual funds, and pension funds, or other professionals in equity

investment, fund management, and wealth management. Several different types of

stock trading exist including day trading, trend following, market making, scalping

(trading), momentum trading,trading the news, and arbitrage.

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On the other hand, stock investors are firms or individuals who purchase stocks

with the intention of holding them for an extended period of time, usually several

months to years. They rely primarily on fundamental analysis for their investment

decisions and fully recognize stock shares as part-ownership in the company. Many

investors believe in thebuy and hold strategy, which as the name suggests, implies that

investors will buy stock ownership in a corporation and hold onto those stocks for the

very long term, generally measured in years. This strategy was made popular in the

equity bull market of the 1980s and 90s where buy-and-hold investors rode out short-

term market declines and continued to hold as the market returned to its previous highs

and beyond. However, during the 2001-2003 equity bear market, the buy-and-hold

strategy lost some followers as broader market indexes like the NASDAQ saw their

values decline by over 60%.

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NEED OF THE STUDY

The study is undertaken to understand Equity market and to find out the new

opportunities to attract the investors towards the Equities according to their risk

preferences. Before investing money in financial assets, investors should thoroughlyknow about the Economy, Industry, and Company. Along with measuring companys

financial performance investors should also need to analyze the stocks price

movements in secondary markets.

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OBJECTIVES OF THE STUDY

Investors demographics influence choice of investment in Indiabulls

Securities.

To study the impact of investors risk preferences in Indiabulls Securities.

To find out the reasons for investing in equities.

To examine the various investment options which are available in the market?

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SCOPE OF THE STUDY

The study is conducted to understand the functioning of Equities in India

Equity market.

The choice of location for the study is based on the responses given by the

investors of who are operating the stock market in twin cities.

This study will helpful in understanding the behavior and risk preferences of

investors.

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RESEARCH METHODOLOGY

Primary Data:

The study conducted by Indiabulls Securities .Official only subjective

evaluation of indication of indication of investors risk preferences among the variousinvestors. The ground for this study is Hyderabad.

Information about the demographics of investors and risk preferences of

investment among various investors collected through primary sources using a

questionnaire collects the investors responses and their investment behaviors.

Secondary Data:

Secondary Data takenby through Internet, Magazines Articles and Text Books.

Samplesize: 100 Investors ofIndiabulls Securities. Has been taken time period is

45 days. Pie charts, Bar charts have been used to show the investor preference.

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LIMITATIONS OF THE STUDY

Primary data that will be the sample size of a 100 investors only.

The time period is only for 45 days to do a project and the study will be done

based on the data available within the time period only.

The study is limited to twin cities investors only.

The study is limited to only one stock broking company so we cant predict

whole data for analysis.

This study was only done with the help of investors and other officials.

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REVIEW OF LITERATURE

Massimo Guidolin and Giovanna Nicodano in their research on small caps

in international equity portfolios: The effect of variance risk, they show that

predictable covariances between means and variances of stock returns may have a first

order effect on portfolio composition. In an international asset menu which includes

small capitalization equity indices, they find that a three-state, heteroskedastic regime

switching VAR model is required to provide a good fit to weekly return data and to

accurately predict the dynamics in the joint density of returns. As a result of the non-

linear dynamic features revealed by the data, small cap portfolios become riskier in

bear markets, i.e., display negative co-skew ness with other stock indices. Because of

this property, a power utility investor ought to hold a well-diversified portfolio, despitethe high risk premium and Sharpe ratios offered by small capitalization stocks. On the

contray, small caps command large optimal weights when the investor ignores variance

risk, by incorrectly assuming joint normality of retuns.

Jamil Baz, Eric Briys and Bart.Bronneenberg in their research on Risk

Perception in the short Run and Long Run they find that there is an ongoing

controversy in financial economics regarding the role of the time horizon in portfolio

selection. This problem is relevant in a broader context, whatever consumers or

managers make decisions that involve both time and risk. The purpose of this paper is

to review recent findings from the decision making literature so as to shed new light on

how the short run vs. long run contingency may determine risk taking perception.

Brue Niendorf 1 and Thomas Ottaway 2-June 2006 Individual risk

preferences .By enamining the wealth characteristics of agents of different risk

preferences, we study the financial incentive of investors to demonstrate different risk

preferences. To accomplish this, we model the stock market utilizing artificial adaptive

agents .If investors have incentive to very their risk preferences, or if investors of a

constant risk preferences vary the way they participate in the market conditions, this

could lead to time variation in market risk premiums .Use find that agents have

significant incentive to demonstrate different risk preferences under different market

conditions.

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INTRODUCTION OF CONCEPTS OF EQUITY

Equity:

A fund brought into a business by its shareholders is called equity. It is a

measure of a stake of a person or group of persons starting a business.

Investing in Equity Means:

When you buy a companys equity, you are in effect financing it, and being

compensated with a stake in the business. You become part-owner of the company,

entitled to dividends and other benefits that the company may announce, but without

any guarantee of a return on your investments

Fundamental Analysis:

The analysis of factual information like financial figures, balance sheet, and

other information publicly available is known as fundamental analysis. This

information is used to derive a fair price of the share of the company. The faithful

fundamentalists believe that the market incorporates all facts relating to the financial

performance of the company. But systematic analysis use tools such as ratio analyses

(P/E, MV/BV) and discounted cash flow analysis in order to arrive at the fair value of a

company and hence its share.

Basics of Equity Market - Stock Exchange:

A common platform where buyers and sellers come together to transact in

stocks and shares. It may be a physical entity where brokers trade on a physical trading

via open outcry system or a virtual environment.

Electronic Trading:

Electronic trading eliminates the need for physical trading floors. Brokers can

trade from their offices, using fully automated screen-based processes. Their

workstations are connected to a Stock exchanges central computer via satellite using

Very Small Aperture Terminus (VSATs). The orders placed by brokers reach the

Exchanges central computer and are matched electronically.

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Exchanges in India:

The Stock Exchange, Mumbai (BSE) and National stock Exchange (NSE) are

the countrys two leading Exchanges. There are 20 other regional Exchanges,

connected via the Inter-Connected stock Exchange (ICSE). The BSE and NSE allow

nationwide trading via VSAT systems.

Index:

An index is a comprehensive measure of market trends, intended for investors

who are concerned with general stock market price movements. An index comprises

stocks that have large liquidity and market capitalization. Each stock is given

weightage in index equivalent to its market capitalization. At the NSE, capitalization

of NIFTY (fifty stocks) is taken as a base capitalization, with the value set at 1000.

Similarly, BSE se3nsitive Index/Sensex comprises 30 selected stocks. The Index value

compares the days market capitalization vis--vis base capitalization & indicates how

prices in general have moved over period of time

Executing an Order:

Select broker of your choice and enter into broker-client agreement and fill in

the client registration form. Place your order with your broker preferably in writing.

Get a trade confirmation slip on the day the trade is executed and ask for the contract

note at the end of the trade date.

Need of 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 deal

only other through registered broker of a recognized Stock Exchange or thorough

SEBI-registered sub-broker.

Contract Note:

A contract note describes the rate, date, time at which the trade was transacted

and the brokerage rate. Contract note issued in the prescribed format establishes legally

enforceable relationship between the client and the member in respect of trades stated

in the contract note. Those are made in duplicate and the member and the client both

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keep copy each. Client should receive the contract note within 24 hours of the executed

trade. Corporate Benefits/Action

Book - Closure/Record Date:

Book closure and record date help a company determine exactly the

shareholders of a company as on a given date. Book closure refers to the closing of

register of the names or investors in the records of company. Companies announce

book closure dates from time to time. The benefits of dividends, bonus issues, rights

issue accruing to investors whose name appears on the companys records as on a given

date, is known as the record date. An investor might purchase a share-cum-dividend,

cum rights or cum bonus and may therefore expect to receive these benefits as the next

shareholder. In order to receive this, the share has to be transferred in the investors

name, or he would stand deprived of the benefits. The buyer of such a shares

purchased at cum benefits prices are transferred before book-closure. It must be

ensured that price paid for the shares is ex-benefit and cum benefit.

Difference between Book Closure and Record Date:

In case of a record date, the company does not close its register of security

holders. Record date is the cutoff date for determining the number of registered

members who are eligible for the corporate benefits. In case of book closure, shares

cannot be sold on an Exchange bearing a date on the transfer deed earlier than the book

closure. This does not hold good for the record date.

No-delivery Period:

Whenever a company announces a book closure or record date, The Exchange

sets up a no-delivery (ND) period for that security. During this period only trading is

permitted in the security. However, these trades are settled only after the no-delivery

period is over. This is done to ensure that investors entitlement for the corporate

benefits is clearly determined.

Ex-Dividend Date:

The date on or after which a security begins trading without the dividend (cash

or stock) included in the contract price.

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Ex-Date:

The first day of the no-delivery period is the ex-date. If there are any corporate

benefits such as rights, the buyer of the shares on or after the ex-date will not be

eligible for the benefits.

Bonus Issue:

While investing in shares motives is not only capital gains but also

proportionate share of surplus generated from the operations once all other stakeholders

have been paid. But the distribution of this surplus to shareholders seldom happens.

Instead, this is transferred to the reserves and surplus account. If the reserves and

surplus amount to the share capital account by mere book entry. This is done by

increasing number of shares outstanding and every shareholder is given bonus shares in

a ratio called the bonus ratio and such an issue is called bonus issue. If the bonus ratio

1:2, it means that for every two shares held, the shareholder is entitled to one extra

share. So if a shareholder holds two shares, post bonus he will hold three.

Split:

Split is book entry where in the face value of the share is altered to create

greater number of shares outstanding without calling for fresh capital/altering the share

capital account. For example, if a company announces a two-way split, it means that

share of the face value of Rs. 10 is split into two shares of face value of Rs. 5 each and

a person holding one share now holds two shares.

Buy Back:

As the name suggests, it is a process by which company can buy back its shares

from shareholders. Company may buy back shares in various ways: from existing

shareholders on a proportionate basis; through a tender offer from open market;

through book-building process; from the Stock Exchange; or from odd lot holders.

Company cannot buy back through negotiated deals on/off the Stock Exchange,

through spot transactions or through any private arrangement.

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Settlement Cycle:

The accounting period for the securities traded on the Exchange. On the NSE,

the cycle begins on Wednesday and ends on the Tuesday, and on the BSE the cycle

commences on Monday and ends on Friday. At the end of this period, the obligations

of each broker are calculated and the brokers settle their respective obligations as per

the rules, bye-laws and regulations of the clearing corporation. If transaction is entered

on the first day of the settlement, the same will be settled on the eighth working day

excluding the day of transaction. However, if the same is done on the last day

excluding the day of transaction. However, if the same is done on the last day of the

settlement, it will be settled on the fourth working day excluding the day of transact

Rolling Settlement:

The rolling settlements ensure that each days trade is settled by keeping a fixed

gap of a specified number of working days between a trade and its settlement. At

present, this gap is five working days after the trading day. The waiting period is

uniform for all trades. Deliver the same shares and payment to broker As a seller, in

order to ensure smooth settlement you should deliver those shares to your broker

immediately after getting the contract note for sale but in any case before the pay-in

day. Similarly, as a buyer, one should pay immediately on the receipt of the contract

note for purchase but in any case before the pay-in day.

Short Selling:

Short selling is a legitimate trading strategy. It is sale of a security that the

seller does not own, or any sale that is completed by the delivery of security borrowed

by the seller. Sellers take the risk that the price at which they sold short.

Auction:

An auction is conducted for those securities that members fail to deliver/short

deliver during pay-in. Three factors primarily give rise to an auction: short deliveries,

un-rectified bad deliveries, and un-rectified company objections.

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Market for Auctions:

The buy/sell auction for a market security is managed through the auction

market. As opposed to the normal market where trade matching is an on-going

process, trade matching process for auction starts after auction period is over.

If the Shares are not Bought in the Auction:

If the shares are not bought at the auction i.e. if the shares are not offered for

sale, sale Exchange squares up the transaction as per SEBI guidelines. The transaction

is squared up at the highest price from the relevant trading period till the auction day or

at 20% above the last available closing price whichever is higher. Pay-in and pay-out

of funds for auction square up is held along with the pay-out for the relevant auction.

Bad Delivery:

SEBI has formulated uniform guidelines for good and bad delivery of

documents. Bad delivery may pertain to transfer deed being torn, mutilated,

overwritten, defaced, or if there are spelling mistakes in the name of company on the

transfer. Bad delivery exists only when shares are transferred physically. In De mat

bad delivery does not exist.

Company Objections:

List document reasons by company for not transferring share in the name of

investors are called company objections. Rejection occurs due to a signature

difference, or fake shares, or forgery, or if there is a court injunction preventing the

transfer of the shares. The broker must immediately be notified. Company objection

cases should be reported within 12 months from the date the date of issue of the memo

for the original quantity of share under objection.

Replacement of Shares in Case of Company Objections:

The member who has sold the shares first on the Exchange is responsible for

replacing the shares within 21 days of the Exchange being informed. Company

objection cases that are not rectified or replaced are normally auctioned.

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Transfer of Physical Shares:

After a sale, the share certificate along with a proper transfer deed duly stamped

and complete in all respects is sent to the company for transfer in the name of the

buyer. Once the transfer is registered in the share transfer register maintained by the

company, the process of transfer is complete.

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INDUSTRIAL PROFILE

EVOLUTION

Indian Stock Markets are one of the oldest in Asia. Its history dates back to

nearly 200 years ago. The earliest records of security dealings in India are meager and

obscure. The East India Company was the dominant institution in those days and

business in its loan securities used to be transacted towards the close of the eighteenth

century.

By 1830's business on corporate stocks and shares in Bank and Cotton presses

took place in Bombay. Though the trading list was broader in 1839, there were only

half a dozen brokers recognized by banks and merchants during 1840 and 1850.

The 1850's witnessed a rapid development of commercial enterprise and

brokerage business attracted many men into the field and by 1860 the number of

brokers increased into 60.

In 1860-61 the American Civil War broke out and cotton supply from United

States of Europe was stopped; thus, the 'Share Mania' in India begun. The number of

brokers increased to about 200 to 250. However, at the end of the American Civil War,

in 1865, a disastrous slump began (for example, Bank of Bombay Share which had

touched Rs 2850 could only be sold at Rs. 87).

At the end of the American Civil War, the brokers who thrived out of Civil War

in 1874, found a place in a street (now appropriately called as Dalal Street) where they

would conveniently assemble and transact business. In 1887, they formally established

in Bombay, the "Native Share and Stock Brokers' Association" (which is alternatively

known as The Stock Exchange "). In 1895, the Stock Exchange acquired a premise in

the same street and it was inaugurated in 1899. Thus, the Stock Exchange at Bombay

was consolidated.

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Other Leading Cities in Stock Market Operations

Ahmadabad gained importance next to Bombay with respect to cotton textile

industry. After 1880, many mills originated from Ahmadabad and rapidly forged ahead.

As new mills were floated, the need for a Stock Exchange at Ahmadabad was realized

and in 1894 the brokers formed "The Ahmadabad Share and Stock Brokers'

Association".

What the cotton textile industry was to Bombay and Ahmadabad, the jute

industry was to Calcutta. Also tea and coal industries were the other major industrial

groups in Calcutta. After the Share Mania in 1861-65, in the 1870's there was a sharp

boom in jute shares, which was followed by a boom in tea shares in the 1880's and

1890's; and a coal boom between 1904 and 1908. On June 1908, some leading brokers

formed "The Calcutta Stock Exchange Association".

In the beginning of the twentieth century, the industrial revolution was on the

way in India with the Swadeshi Movement; and with the inauguration of the Tata Iron

and Steel Company Limited in 1907, an important stage in industrial advancement

under Indian enterprise was reached.

Indian cotton and jute textiles, steel, sugar, paper and flour mills and all

companies generally enjoyed phenomenal prosperity, due to the First World War.

In 1920, the then demure city of Madras had the maiden thrill of a stock

exchange functioning in its midst, under the name and style of "The Madras Stock

Exchange" with 100 members. However, when boom faded, the number of members

stood reduced from 100 to 3, by 1923, and so it went out of existence.

In 1935, the stock market activity improved, especially in South India where

there was a rapid increase in the number of textile mills and many plantation companies

were floated. In 1937, a stock exchange was once again organized in Madras - Madras

Stock Exchange Association (Pvt) Limited. (In 1957 the name was changed to Madras

Stock Exchange Limited).

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Lahore Stock Exchange was formed in 1934 and it had a brief life. It was

merged with the Punjab Stock Exchange Limited, which was incorporated in 1936.

Indian Stock Exchanges - An Umbrella Growth

The Second World War broke out in 1939. It gave a sharp boom which was

followed by a slump. But, in 1943, the situation changed radically, when India was

fully mobilized as a supply base.

On account of the restrictive controls on cotton, bullion, seeds and other

commodities, those dealing in them found in the stock market as the only outlet for

their activities. They were anxious to join the trade and their number was swelled by

numerous others. Many new associations were constituted for the purpose and Stock

Exchanges in all parts of the country were floated.

The Uttar Pradesh Stock Exchange Limited (1940), Nagpur Stock Exchange

Limited (1940) and Hyderabad Stock Exchange Limited (1944) were incorporated.

In Delhi two stock exchanges - Delhi Stock and Share Brokers' Association

Limited and the Delhi Stocks and Shares Exchange Limited - were floated and later in

June 1947, amalgamated into the Delhi Stock Exchnage Association Limited.

Post-independence Scenario

Most of the exchanges suffered almost a total eclipse during depression. Lahore

Exchange was closed during partition of the country and later migrated to Delhi and

merged with Delhi Stock Exchange.

Bangalore Stock Exchange Limited was registered in 1957 and recognized in

1963.

Most of the other exchanges languished till 1957 when they applied to the

Central Government for recognition under the Securities Contracts (Regulation) Act,

1956. Only Bombay, Calcutta, Madras, Ahmadabad, Delhi, Hyderabad and Indore, the

well established exchanges, were recognized under the Act. Some of the members of

the other Associations were required to be admitted by the recognized stock exchanges

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on a concessional basis, but acting on the principle of unitary control, all these pseudo

stock exchanges were refused recognition by the Government of India and they

thereupon ceased to function.

Thus, during early sixties there were eight recognized stock exchanges in India

(mentioned above). The number virtually remained unchanged, for nearly two decades.

During eighties, however, many stock exchanges were established: Cochin Stock

Exchange (1980), Uttar Pradesh Stock Exchange Association Limited (at Kanpur,

1982), and Pune Stock Exchange Limited (1982), Ludhiana Stock Exchange

Association Limited (1983), Gauhati Stock Exchange Limited (1984), Kanara Stock

Exchange Limited (at Mangalore, 1985), Magadh Stock Exchange Association (at

Patna, 1986), Jaipur Stock Exchange Limited (1989), Bhubaneswar Stock Exchange

Association Limited (1989), Saurashtra Kutch Stock Exchange Limited (at Rajkot,

1989), Vadodara Stock Exchange Limited (at Baroda, 1990) and recently established

exchanges - Coimbatore and Meerut. Thus, at present, there are totally twenty one

recognized stock exchanges in India excluding the Over the Counter Exchange of India

Limited (OTCEI) and the National Stock Exchange of India Limited (NSEIL).

The Table given below portrays the overall growth pattern of Indian stock

markets since independence. It is quite evident from the Table that Indian stock

markets have not only grown just in number of exchanges, but also in number of listed

companies and in capital of listed companies. The remarkable growth after 1985 can be

clearly seen from the Table, and this was due to the favouring government policies

towards security market industry.

Trading Pattern of the Indian Stock Market:

Trading in Indian stock exchanges are limited to listed securities of public

limited companies. They are broadly divided into two categories, namely, specified

securities (forward list) and non-specified securities (cash list). Equity shares of

dividend paying, growth-oriented companies with a paid-up capital of atleast Rs.50

million and a market capitalization of atleast Rs.100 million and having more than

20,000 shareholders are, normally, put in the specified group and the balance in non-

specified group.

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Two types of transactions can be carried out on the Indian stock exchanges: (a)

spot delivery transactions "for delivery and payment within the time or on the date

stipulated when entering into the contract which shall not be more than 14 days

following the date of the contract: and (b) forward transactions "delivery and payment

can be extended by further period of 14 days each so that the overall period does not

exceed 90 days from the date of the contract". The latter is permitted only in the case of

specified shares. The brokers who carry over the outstandings pay carry over charges

(cantango or backwardation) which are usually determined by the rates of interest

prevailing.

A member broker in an Indian stock exchange can act as an agent, buy and sell

securities for his clients on a commission basis and also can act as a trader or dealer as

a principal, buy and sell securities on his own account and risk, in contrast with the

practice prevailing on New York and London Stock Exchanges, where a member can

act as a jobber or a broker only.

The nature of trading on Indian Stock Exchanges are that of age old

conventional style of face-to-face trading with bids and offers being made by open

outcry. However, there is a great amount of effort to modernize the Indian stock

exchanges in the very recent times.

Over The Counter Exchange of India (OTCEI)

The traditional trading mechanism prevailed in the Indian stock markets gave

way to many functional inefficiencies, such as, absence of liquidity, lack of

transparency, unduly long settlement periods and benami transactions, which affected

the small investors to a great extent. To provide improved services to investors, the

country's first ringless, scripless, electronic stock exchange - OTCEI - was created in

1992 by country's premier financial institutions - Unit Trust of India, Industrial Credit

and Investment Corporation of India, Industrial Development Bank of India, SBI

Capital Markets, Industrial Finance Corporation of India, General Insurance

Corporation and its subsidiaries and CanBank Financial Services.

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Trading at OTCEI is done over the centres spread across the country. Securities

traded on the OTCEI are classified into:

Listed Securities - The shares and debentures of the companies listed on the

OTC can be bought or sold at any OTC counter all over the country and they

should not be listed anywhere else

Permitted Securities - Certain shares and debentures listed on other exchanges

and units of mutual funds are allowed to be traded

Initiated debentures - Any equity holding atleast one lakh debentures of

particular scrip can offer them for trading on the OTC.

OTC has a unique feature of trading compared to other traditional exchanges.

That is, certificates of listed securities and initiated debentures are not traded at OTC.

The original certificate will be safely with the custodian. But, a counter receipt is

generated out at the counter which substitutes the share certificate and is used for all

transactions.

In the case of permitted securities, the system is similar to a traditional stock

exchange. The difference is that the delivery and payment procedure will be completed

within 14 days.

Compared to the traditional Exchanges, OTC Exchange network has the

following advantages:

OTCEI has widely dispersed trading mechanism across the country which

provides greater liquidity and lesser risk of intermediary charges.

Greater transparency and accuracy of prices is obtained due to the screen-based

scripless trading.

Since the exact price of the transaction is shown on the computer screen, the

investor gets to know the exact price at which s/he is trading.

Faster settlement and transfer process compared to other exchanges.

In the case of an OTC issue (new issue), the allotment procedure is completed

in a month and trading commences after a month of the issue closure, whereas it

takes a longer period for the same with respect to other exchanges.

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Thus, with the superior trading mechanism coupled with information

transparency investors are gradually becoming aware of the manifold advantages of the

OTCEI.

National Stock Exchange (NSE):

With the liberalization of the Indian economy, it was found inevitable to lift the

Indian stock market trading system on par with the international standards. On the basis

of the recommendations of high powered Pherwani Committee, the National Stock

Exchange was incorporated in 1992 by Industrial Development Bank of India,

Industrial Credit and Investment Corporation of India, Industrial Finance Corporation

of India, all Insurance Corporations, selected commercial banks and others.

Trading at NSE can be classified under two broad categories:

(a) Wholesale Debt Market and

(b) Capital Market.

Wholesale debt market operations are similar to money market operations -

institutions and corporate bodies enter into high value transactions in financial

instruments such as government securities, treasury bills, public sector unit bonds,

commercial paper, certificate of deposit, etc.

There are two kinds of players in NSE:

(a) Trading members and

(b) Participants.

Recognized members of NSE are called trading members who trade on behalf

of themselves and their clients. Participants include trading members and large players

like banks who take direct settlement responsibility.

Trading at NSE takes place through a fully automated screen-based trading

mechanism which adopts the principle of an order-driven market. Trading members can

stay at their offices and execute the trading, since they are linked through a

communication network. The prices at which the buyer and seller are willing to transact

will appear on the screen. When the prices match the transaction will be completed and

a confirmation slip will be printed at the office of the trading member.

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NSE has several advantages over the traditional trading exchanges. They are as

follows:

NSE brings an integrated stock market trading network across the nation.

Investors can trade at the same price from anywhere in the country since inter-

market operations are streamlined coupled with the countrywide access to the

securities.

Delays in communication, late payments and the malpractices prevailing in the

traditional trading mechanism can be done away with greater operational

efficiency and informational transparency in the stock market operations, with

the support of total computerized network.

Unless stock markets provide professionalized service, small investors and

foreign investors will not be interested in capital market operations. And capital market

being one of the major source of long-term finance for industrial projects, India cannot

afford to damage the capital market path. In this regard NSE gains vital importance in

the Indian capital market system.

Preamble

Often, in the economic literature we find the terms development and growth

are used interchangeably. However, there is a difference. Economic growth refers to the

sustained increase in per capita or total income, while the term economic development

implies sustained structural change, including all the complex effects of economic

growth. In other words, growth is associated with free enterprise, where as

development requires some sort of control and regulation of the forces affecting

development. Thus, economic development is a process and growth is a phenomenon.

Economic planning is very critical for a nation, especially a developing country

like India to take the country in the path of economic development to attain economic

growth.

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Why Economic Planning for India?

One of the major objective of planning in India is to increase the rate of

economic development, implying that increasing the rate of capital formation by raising

the levels of income, saving and investment. However, increasing the rate of capital

formation in India is beset with a number of difficulties. People are poverty ridden.

Their capacity to save is extremely low due to low levels of income and high

propensity to consume. Therefor, the rate of investment is low which leads to capital

deficiency and low productivity. Low productivity means low income and the vicious

circle continues. Thus, to break this vicious economic circle, planning is inevitable for

India.

The market mechanism works imperfectly in developing nations due to the

ignorance and unfamiliarity with it. Therefore, to improve and strengthen market

mechanism planning is very vital. In India, a large portion of the economy is non-

monitised; the product, factors of production, money and capital markets is not

organized properly. Thus the prevailing price mechanism fails to bring about

adjustments between aggregate demand and supply of goods and services. Thus, to

improve the economy, market imperfections has to be removed; available resources has

to be mobilized and utilized efficiently; and structural rigidities has to be overcome.

These can be attained only through planning.

In India, capital is scarce; and unemployment and disguised unemployment is

prevalent. Thus, where capital was being scarce and labour being abundant, providing

useful employment opportunities to an increasing labour force is a difficult exercise.

Only a centralized planning model can solve this macro problem of India.

Further, in a country like India where agricultural dependence is very high, one

cannot ignore this segment in the process of economic development. Therefore, an

economic development model has to consider a balanced approach to link both

agriculture and industry and lead for a paralleled growth. Not to mention, both

agriculture and industry cannot develop without adequate infrastructural facilities

which only the state can provide and this is possible only through a well carved out

planning strategy. The governments role in providing infrastructure is unavoidable due

to the fact that the role of private sector in infrastructural development of India is very

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minimal since these infrastructure projects are considered as unprofitable by the private

sector.

Further, India is a clear case of income disparity. Thus, it is the duty of the state

to reduce the prevailing income inequalities. This is possible only through planning.

Planning History of India

The development of planning in India began prior to the first Five Year Plan of

independent India, long before independence even. The idea of central directions of

resources to overcome persistent poverty gradually, because one of the main policies

advocated by nationalists early in the century. The Congress Party worked out a

program for economic advancement during the 1920s, and 1930s and by the 1938

they formed a National Planning Committee under the chairmanship of future Prime

Minister Nehru. The Committee had little time to do anything but prepare programs

and reports before the Second World War which put an end to it. But it was already

more than an academic exercise remote from administration. Provisional government

had been elected in 1938, and the Congress Party leaders held positions of

responsibility. After the war, the Interim government of the pre-independence years

appointed an Advisory Planning Board. The Board produced a number of somewhat

disconnected Plans itself. But, more important in the long run, it recommended the

appointment of a Planning Commission.

The Planning Commission did not start work properly until 1950. During the

first three years of independent India, the state and economy scarcely had a stable

structure at all, while millions of refugees crossed the newly established borders of

India and Pakistan, and while ex-princely states (over 500 of them) were being merged

into India or Pakistan. The Planning Commission as it now exists was not set up until

the new India had adopted its Constitution in January 1950.

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Objectives of Indian Planning

The Planning Commission was set up the following Directive principles:

To make an assessment of the material, capital and human resources of the

country, including technical personnel, and investigate the possibilities of

augmenting such of these resources as are found to be deficient in relation to the

nations requirement.

To formulate a plan for the most effective and balanced use of the countrys

resources.

Having determined the priorities, to define the stages in which the plan should

be carried out, and propose the allocation of resources for the completion of

each stage.

To indicate the factors which are tending to retard economic development, and

determine the conditions which, in view of the current social and political

situation, should be established for the successful execution of the Plan.

To determine the nature of the machinery this will be necessary for securing the

successful implementation of each stage of Plan in all its aspects.

To appraise from time to time the progress achieved in the execution of each

stage of the Plan and recommend the adjustments of policy and measures that

such appraisals may show to be necessary.

To make such interim or auxiliary recommendations as appear to it to be

appropriate either for facilitating the discharge of the duties assigned to it or on

a consideration of the prevailing economic conditions, current policies,

measures and development programs; or on an examination of such specific

problems as may be referred to it for advice by Central or State Governments.

The long-term general objectives of Indian Planning are as follows:

Increasing National Income

Reducing inequalities in the distribution of income and wealth

Elimination of poverty

Providing additional employment; and

Alleviating bottlenecks in the areas of : agricultural production, manufacturing

capacity for producers goods and balance of payments.

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Economic growth, as the primary objective has remained in focus in all Five

Year Plans. Approximately, economic growth has been targeted at a rate of five per

cent per annum. High priority to economic growth in Indian Plans looks very much

justified in view of long period of stagnation during the British rule

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COMPANY PROFILE

Introduction to India bulls:

Indiabulls is Indias leading Financial and Real Estate Company with a wide

presence throughout India. They ensure convenience and reliability in all their products

and services. Indiabulls has over 640 branches all over India. The customers of

Indiabulls are more than 4,50,000 which covers from a wide range of financial services

and products from securities, derivatives trading, depositary services, research &

advisory services, consumer secured & unsecured credit, loan against shares and

mortgage & housing finance. The company employs around 4000 Relationship

managers who help the clients to satisfy their customized financial goals. Indiabullsentered the Real Estate business in the year 2005 with its group of companies. Large

scale projects worth several hundred million dollars are evaluated by them.

Indiabulls Financial Services Ltd is listed on the National Stock Exchange

(NSE), Bombay Stock Exchange (BSE) and Luxembourg Stock Exchange. The market

capitalization of Indiabulls is around USD 2500 million (29thDecember, 2006).

Consolidated net worth of the group is around USD 700 million. Indiabulls and its

group companies have attracted USD 500 million of equity capital in Foreign Direct

Investment (FDI) since March 2000. Some of the large shareholders of Indiabulls are

the largest financial institutions of the world such as Fidelity Funds, Goldman Sachs,

Merrill Lynch, Morgan Stanley and Farallon Capital.

In middle of 1999, when e-commerce was just about starting in India, Sameer

Gehlaut and his close IIT Delhi friend Rajiv Rattan got together and bought a defunct

securities company with a NSE membership and started offering brokerage services. A

Few months later, their friend Saurabh Mittal also joined them. By December 1999, the

company embarked on its journey to build one of the first online platforms in India for

offering internet brokerage services. In January 2000, the 3 founders incorporated

Indiabulls Financial Services and made it as the flagship company.

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In mid 2000, Indiabulls Financial Services received venture capital funding

from Mr. L.N. Mittal & Mr Harish Fabiani. In late 2000, Indiabulls Securities, a

subsidiary of Indiabulls Financial Services started offering online brokerage services

and simultaneously opened physical offices across India. By 2003, Indiabulls securities

had established a strong pan India presence and client base through its offices and on

the internet.

In September 2004, Indiabulls Financial Services went public with an IPO at Rs

19 a share. In late 2004, Indiabulls Financial Services started its financing business

with consumer loans. In March 2005, Indiabulls Properties Private Ltd, a subsidiary of

Indiabulls Financial Services, participated in government auction of Jupiter Mills, a

defunct 11 acre textile mill owned by NTC in Lower Parel, Mumbai. Indiabulls

Properties private Ltd won the mill in auction and that purchase started Indiabulls real

estate business. A few months later, Indiabulls Real Estate company pvt ltd bought

Elphinstone mill in Lower Parel, another textile mill auctioned by NTC.

With real estate business gaining size, Indiabulls Financial Services demerged

the real estate business under Indiabulls Real Estate and each shareholder of Indiabulls

Financial Services received additional share of Indiabulls Real Estate through the

demerger. Subsequently, Indiabulls Financial Services also demerged Indiabulls

Securities and each shareholder of Indiabulls Financial Services also received a share of

Indiabulls Securities.

In year 2007, Indiabulls Real Estate incorporated a 100% subsidiary, Indiabulls

Power, to build power plants and started work on building Nashik & Amrawati thermal

power plants. Indiabulls Power went public in September 2009.

Today, Indiabulls Group has a networth of Rs 16,796 Crore & has a strong

presence in important sectors like financial services, power & real estate through

independently listed companies and Indiabulls Group continues its journey of building

businesses with strong cash flows.

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MANAGEMENT TEAM

Indiabulls Group

Mr. Rajiv Rattan - Vice Chairman

Mr Saurabh Mittal - Vice Chairman

Mr Gagan Banga - Group Spokesperson

Mr Ashok Kacker - Group President

Mr Saket Bahuguna - Group CLO

Mr Ashok Sharma - Group CFO

Mr Ajit Mittal - Group Director

Mr Gurbans Singh - Group Director

Mr Tejinderpal Singh Miglani - Group CIO

Indiabulls Financial Services Limited

Mr. Gagan Banga - CEO

Mr. Ashwini Kumar Hooda - DMD

Indiabulls Real Estate Limited

Mr. Vipul Bansal - CEO

Mr. Narendra Gehlaut - Joint MD

Indiabulls Power Limited

Mr. Ranjit Gupta - CEO

Mr Murali Subramanian - COO

Indiabulls Securities Limited

Mr Divyesh Shah - CEO

Mr Vijay Babbar DMD

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Indiabulls supports Money life Foundation in Empowering Investors

Moneylife Foundation in collaboration with Indiabulls, recently organized an

Investor, Empower Yourself seminar, which was held at the lush Town & Country

Club at New Gurgaon, in the National Capital Region (NCR), on Saturday, 7th May

2011. This was the first occasion for Moneylife Foundation to venture into other

territories outside Maharashtra. Indiabulls played a major role in helping this event

happen successfully.

The event witnessed over 300 attendees not only from Gurgaon but also from

other parts of National Capital Region (NCR), Delhi, Allahabad, Ludhiana, Chandigarh

& other cities from northern region of India. The venue was fully packed with eager &

curious investors. Moneylife Foundation expressed its gratitude towards helpful team

of Indiabulls led by Mr. Gagan Banga, CEO - Indiabulls Financial Services Ltd, for

making this event such a huge success.

The event started with introductory remarks & guidance by Mr. Gagan Banga,

CEO - Indiabulls Financial Services Ltd. Mr. Veeresh Malik, Consulting Editor, Money

life, Delhi gave a brief introduction about Money life Foundation.Then audience was

guided by Sucheta Dalai, Trustee - Money life Foundation and Managing Editor-

Money life, on How to be Safe with your money & Debashis Basu, Trustee - Money

life Foundation and Editor- Money life about How to be smart with your investments.

Mr. Sachin Choudhary, Director & Business Head - Indiabulls Housing Finance Ltd,

talked about Do's and Donts of Housing Mortgages. Ms. Sucheta Dalal also explained

the importance & procedure of Wills & Nominations.

This event helped people in understanding how to become an aware and

empowered investor. The attendees included both finically literate & new investors.

They posted number of intelligent questions which were adequately answered by all the

speakers. Empowering todays investors by creating awareness and guiding them in

taking wise decisions when it comes to money or investments was the main objective

of Investor, Empower Yourself seminar. During the Panel Discussion with the panel

members Sucheta Dalal, Debashis Basu & Sachin Choudhary, quite a few interesting &

informative issues regarding Investments were discussed. Mr. Monu Ratra, National

Sales Manager - Indiabulls housing Finance Ltd gave Vote of Thanks.

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This event received many request and suggestions from audience about

continuing with such events all over India so that citizens of India will be more

empowered investors & ultimately nation will benefit from it. There were some

requests from audience to telecast further events live on television & internet so that

those who are unable to attend the event will also get the guidance. The knowledge

shared about the investments during the event was well appreciated by all.

Moneylife Foundation has been instrumental in promoting financial literacy &

pro-customer advocacy in India. Moneylife Foundation has been organizing such

events at the Moneylife Knowledge Centre in Mumbai, and also in various cities across

Maharashtra. The Foundation has completed 15 months of spreading financial literacy

& has hosted around 49 speakers and 61 events. Currently, more than 5,000 people are

members of the Foundation.

After the seminar, Indiabulls received feedbacks from some attendees

congratulating Indiabulls team about the success of seminar. Many of the attendees

mentioned that they are looking forward to such seminars in future.

Indiabulls has been participating in such Corporate Social Activities with many

other socially aware groups and trusts & Indiabulls is committed to continue in doing

so in future.

THE HUB

The Hub at One Indiabulls Centre at Lower Parel is an intelligently designed

business centre in Mumbai.

In the past few years serviced office industry has been maturing in India and

today is a mainstream occupancy option for businesses of all sizes. Whether a start-up,

SME or a multi-national, companies are now opting for viable alternative to leasing or

the outright purchase of commercial workspace.

Thus managed business centers have emerged as an innovative solution to these

workspace requirements. The Hub at One Indiabulls Centre at Lower Parel is one such

intelligently designed business centre in Mumbai that offers 25,000sqft of fully

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equipped, serviced workspace not only suitable for large corporations but also for small

businesses and lean team set ups due to the option of small customized spaces.

The real advantage of The Hub is not just that it is more cost effective but also it

offers best possible working environment by offering conveniences such as advanced

security, pantry and maintenance services including IT and utility bills for electricity,

water & HVAC.

Whats more, those moving into The Hub serviced offices enjoy the added

benefit of cutting edge IT and telecom infrastructure, reception and secretarial support,

hi-tech meeting rooms and video conferencing suites as well as business lounge, food

courts and state of the art fitness centre.

Not to forget among various factors that can affect a business and its success

and growth, is the address or the location of the office especially those of newly

established enterprises. The Hub within a world class contemporary business complex

located between Nariman Point and Bandra Kurla Complex and in close proximity to

Bandra Worli Sea Link is undeniably in the finest commercial location in Mumbais

upcoming central business district- Lower Parel.

Undeniably, The Hub is a new age business centre that provides a very

attractive proposition to businesses of all sizes to help their own business grow and

prosper.

Indiabulls CSR Initiative - Drug Access Program for cancer patients in

partnership with Novartis

As part of our deep commitment to social causes, Indiabulls has taken up this

noble project named Novartis Oncology Access in partnership with Novartis

(manufacturer of drugs) & Max foundation (NGO). We as the financial partner are

helping them assess actual income of patient & family & based on assessed income;

recommend the drugs donation slab as per approved guidelines & SOP.

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Novartis are the developers & makers of Glivec (Imatinib) - a medication for

the treatment of Ph+ chronic myeloid leukemia (CML) in chronic phase, accelerated

phase and blast crisis for both pediatric and adult patients. This drug is also indicated

for adult patients with adjuvant, unresectable and/or metastatic c-kit / cd-117

gastrointestinal stromal tumors (GIST). Tasigna (nicotinic) a drug recently launched by

Novartis is used as medication for the treatment of Ph+ chronic myeloid leukemia

(CML) in chronic phase, accelerated phase and blast crisis for only adult patients.

NOA program:

The NOA program is a drug access program for to help patients who have been

prescribed Glivec and Tasigna but cannot afford to pay for the entire treatment cost.

This program is run by Novartis along with its partner Physicians- enrolls patient

under this program after diagnosis, The MAX Foundation- independent NGO Assist

patient throughout the program in completing formalities & procurement of medicines,

Indiabulls Financial Services - independent body for financial evaluation of patient,

collection & safekeeping the submitted documents with confidentiality and C&F

outlets Independent pharmacist, dispenses drugs to patients & manage drug

inventory.

Indiabulls Financial Services: As a NOA partner we are performing task of the local

credit evaluation agency which works as an independent and unbiased body for the

financial analysis and assessment of the patient and family members earning capacity

to afford medical expenses on critical disease. The analysis bases on income levels

assessment by way of financial evaluation, field verification, living standard, personal

discussion with patient/ care taker & guidelines as per standard operating procedure

(SOP) which is prepared by Novartis based on the WHO guidelines for drug donation

programs using Business for Social Responsibilitys (BSR) cost of living index, a well-

established international guide often used as eligibility criteria for determining access

to drug assistance programs. Based on the family composite Income a suitable

donation decision is given.

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Contractibility

Indiabulls has designated a dedicated Help-Line Number: 022 30491720 that

will receive patient calls during office hours (9:00 a.m. to 6.00 p.m.) so it may handle

in-bound calls in response only to queries regarding the submission of requirements for

the NOA. For any medical or clinical queries, Indiabulls Financial Services refer

patients to their treating physician.

Businesses

Indiabulls Group is one of the country's leading business houses with business

interests in Power, Financial Services, Real Estate and Infrastructure. India bulls Group

companies are listed in Indian and overseas financial markets. The Net worth of the

Group is Rs 16,796 Crore and the total planned capital expenditure of the Group by

2013-14 is Rs 35,000 Crore.

Indiabulls Power is currently developing Thermal Power Projects with an

aggregate capacity of 5400 MW. The first unit is expected to go on stream in May

2012. The net worth of Indiabulls Power is Rs 3,917 Crore. The company has a total

capital expenditure of Rs 27,500 Crore. The company has been assigned 'BBB' rating.

Indiabulls Financial Services is one of Indias leading non-banking finance

companies providing Home Loans, Commercial Vehicle Loans and Secured SME

Loans. The company has a net worth of Rs 4,680 crore with an asset book of over Rs

18,500 Crore. The company has disbursed loans over Rs 45,000 Crore to over 3, 00,000

customers till date. Amongst its financial services and banking peers, Indiabulls

Financial Services ranks amongst the top few companies both in terms of net worth and

capital adequacy. Indiabulls Financial Services has been assigned AA+ rating and has

presence in over 90 cities and towns with a total branch network of 140 branches.

Indiabulls Real Estate is among India's top Real Estate companies with

development projects spread across residential complexes, integrated townships,

commercial office complexes, hotels, malls, Special Economic Zones (SEZs) and

infrastructure development. Indiabulls Real Estate partnered with Farallon Capital

Management LLC of USA to bring the first FDI into real estate in the country. The

company has a net worth of Rs 7,953 Crore and has purchased prime land, mostly in

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the metros and other Tier 1 cities worth Rs 4,000 Crore in government auctions alone.

Indiabulls Real Estate is currently developing 57 million sqft into premium quality,

high-end commercial, residential and retail spaces. The company has been assigned

'A+' rating.

Indiabulls Securities is one of India's leading capital markets companies

providing securities broking and advisory services. Indiabulls Securities also provides

depository services, equity research services and IPO distribution to its clients and

offers commodities trading through a separate company. These services are provided

both through on-line and off-line distribution channels. Indiabulls Securities is a

pioneer of on-line securities trading in India. Indiabulls Securities in-house trading

platform is one of the fastest and most efficient trading platforms in the country.

Indiabulls Securities has been assigned the highest rating BQ-1 by CRISIL.

Indiabulls foundation

India has witnessed an economic transformation over the past two decades,

translating into higher incomes, better educational opportunities, improved

infrastructure, a dynamic private sector, and leadership in the global community. We

have much to be proud of.

But we also recognize that we have a long way to go. Over 700 million people

live under $2 a day. Learning levels in schools remain abysmally low; most of our rural

populations do not have access to basic health care, regular electricity, clean water, and

sanitation. India has some of the worlds worst statistics on basic development

indicators such as malnutrition, infant mortality, and gender discrimination.

As a society, we are at the confluence of accelerated economic progress and extreme

deprivation, all in the same country, at the same time.

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As corporate citizens, we at Indiabulls are conscious of the opportunities and the

responsibility that this confluence presents.

Investments to increase income levels of our poorest people will expand

business opportunities manifold. Investments to improve education, health and skills

training will improve the efficiency of the economy. Protecting our environment will

actually lower our costs of doing business. Providing our youth with gainful

employment and a chance to improve their lives will ensure societal and political

stability- setting a strong foundation for economic sustainability. All of these

investments will help create an inclusive society, ensuring a sustainable return to our

shareholders.

The Indiabulls Group is keen to help in building an inclusive and prosperous

society and we are beginning our efforts in this direction through Indiabulls

Foundation.

One of the first initiatives of the Foundation is to support the development of

rural districts. Our aim is to support development across multiple domains in a district

based approach. Some of the areas where we want to help are in economic development

and skills training, access to drinking water, school education, public health, agriculture

and support to the local government.

Commercial Vehicle Loans

Indiabulls Commercial Vehicle Loans offers commercial auto loans to a variety

of business owners. We are a preferred financer with first time buyers as well as fleet

operators providing commercial vehicle loans with simple documentation and quick

results.

The Commercial Vehicle Finance provided by us helps the small and medium

operators to acquire vehicles with minimum hassle and documentation. We provide

customized financing options to suit your needs.

Our strength lies in the quick completion of transactions, long association with

transporters and the intimate knowledge of the market and its nuances.

Our finance schemes are easy to understand with no hidden costs.

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We assure you a quick, transparent and hassle-free deal.

1. Product Offering

Finance for new commercial vehicles Finance for used vehicles

Tractor Loans

2. Proposed Finance

Tyre Funding

Accidental Funding

Engine Funding

Take over loans

Top up loan on existing loan with us

3. Features of Loan Offering

Loan for up to 15 years old vehicles.

The best loan offering in the market up to 95% for used vehicles & 100% for

new commercial vehicle chassis

Max tenure of up to 48 months for used vehicles 60 months for new commercial

vehicle chassis

Max tenure of up to 48 months for used vehicles 60 months for new commercial

vehicle chassis

Customized loan to suit your needs

Door Step Services

Easy Documentation

Quick & Hassle free services

Attractive Rate of Interest

No intermediary or Direct Marketing Agent for loan processing

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Senior Vice President

Regional Manager

Branch Manager

Senior Sales Manager

Support System Sales Function

RM/SRM

ARM

Local ComplianceOfficerBack OfficeExecutive

Dealer

Organization Structure- Board of Directors:

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India bulls SecuritiesTrading Products

Cash Account Intraday Account Margin Trading

Trading Products of Indiabulls Securities

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India bulls Securities provide three products for trading. They are

Cash Account

Intraday Account

Margin Trading (Mantra)

Cash Account: It provides the client to buy 4 times of cash balance in his trading

account.

Intraday Product: It provides the client to buy 8 times of his cash balance in the

trading account.

Mantra Account: Also called as margin trading, is a special account to buy on

leverage for a longer duration

India bulls Financial Services Ltd

India bulls Financial Services Ltd. was incorporated in the year 2005.The

Auditors of Indiabulls Financial Services Ltd. are Deloitte, Haskins & Sells. The main

activity of this company is in relation to securities and stock brokerage. It was also

responsible for setting up one of Indias first trading platforms.

The subsidiaries of Indiabulls Financial Services Ltd. include:

Indiabulls Capital Services Ltd.

Indiabulls Commodities Pvt. Ltd.

Indiabulls Credit Services Ltd.

Indiabulls Finance Co. Pvt. Ltd

Indiabulls Housing Finance Ltd.

Indiabulls Insurance Advisors Pvt. Ltd.

Indiabulls Resources Ltd.

Indiabulls Securities Ltd.

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The Bankers of India bulls Financial Services Ltd. are as follows:

ABN-Amor Bank

Andhra Bank

Bank of Maharashtra

Bank of Rajasthan Ltd.

Canara Bank

Centurion Bank of Punjab Ltd.

Citibank

Corporation Bank

Dena Bank

HDFC Bank Ltd

HSBC Ltd.

ICICI Bank Ltd.

IDBI Ltd

Industrial Bank Ltd.

ING Vysya Bank Ltd

Karnataka Bank

Punjab National Bank

State Bank Of India

Syndicate Bank

Union Bank Of India

UTI Bank Ltd.

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DATA ANALYSIS AND INTERPRETATION

1. What is your Age?

DATA INTERPRETATION:

The chart shows that 54 % of respondents that means the maximum number of

investors ages are in between 25 to 35, 22% of investors ages in between 35 to 50,

14% of respondents age is below 25 and 10% of respondents age is in between 25-35.

Type of Respondents (in years) No. of Respondents Percentage (%)

Below 25 14 1425-35 54 54

35-50 22 22

50 and above 10 10

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Graph: 1

INTERPRETATION:

The above table shows that 27 respondents that means the maximum no. of

investors ages are in between 25 to 35 and 11 respondents of investors age is in

between 35 to 50, 7 respondents age is below 25 and 5 respondents age is 50 and

above. It shows the age categories of respondents and percentage of each category.

80

0

10

20

30

40

50

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Below 25 25-35 35-50 50 andabove

No. of respondents

Percentage (%)


46/81

2. What is your Occupation?

DATA INTERPRETATION: The above table shows that 27 respondents occupation

is salaried based employees and rest of them are doing business no one is there in

remaining two types of respondents.

This table shows the type of occupation of respondents and percentages of

different types of respondents.

Occupation of Respondents No. of Respondents Percentage (%)

Business 46 46

Salaried 54 54

Honorioum basis 0 0Others 0 0

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Graph: 2

INTERPRETATION: The chart that 54% of respondents occupation is salaried based

employees and rest of them are doing business no one is there in remaining two types

of respondents.

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20

30

40

50

60

No. of respondents

Percentage (%)


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3. What are your Educational Qualifications?

Type of Respondents No. of Respondents Percentage

Inter and below 4 4

Degree 32 32

P.G 64 64PhD 0 0

DATA INTERPRETAION: The above table shows that 32 investors are post

Graduates, 16 investors of them and 2 investors qualification is inter and below.

The table shows the types of educational qualifications of respondents and

percentages of different types of respondents.

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Graph: 3

INTERPRETATION: The Chart shows that 64% of investors are post graduates,

32% of them are graduates, 4% of them qualifications are inter and below.

80

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10

20

30

40

50

60

70

Inter and

below

Degree P.G PhD

No. of respondents

Percentage


50/81

4. What is your Monthly Income?

DATA INTERPRETATION: The above table shows that 20 of the respondents

monthly income are between 20,000 to 30,000, 14 of them income is between 30,000 to

40,000, 13 of investors monthly income is 20,000 and below and rest of them income is

4000.

Monthly Income No. of Respondents Percentage

20000 and below 26 26

20000 to 30000 40 4030000 - 40000 28 28

40000 and above 6 6

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Graph: 4

This chart shows monthly income of respondents and percentages of different

types of respondents.

INTERPRETATION: The above chart shows that 40% of the respondents monthly

income is between 20000 to 30000, 28% of them income is between 30000 to 40000,

26% of investors monthly income is 20000 and below and rest of them income is above

40000.

80

05

1015202530354045

20000and below20000 to 3000030000-4000040000and above

No. of respondents

Percentage


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5. Number of Dependents?

Type of Investment No. of Respondents Percentage

3 and below 22 22

4 24 24

5 and above 28 28No dependents 26 26

DATA INTERPRETATION:

The above table shows 14 of respondents having five and above dependents, 13

of them having no dependents, 12 of them having four dependents and rest of them

having three and below dependents. This chart shows no.of dependents of respondents

and percentages of different types of respondents.

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Graph: 5

INTERPRETATION: The above chart shows 28% of respondents having five and

above dependents, 26% of them having no dependendents, 24% of them having four

dependents and rest of them having three and below dependents.

80


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6. In which investment avenue have you invested?


Equity 44 44

Debt instruments 12 12

Insurances 24 24others 20 20

DATA INTERPRETATION: The above table shows denoting that investors are

giving priority to investment in equity funds 22 followed by insurance, 12 and debt

instruments them are preferring insurance.

This chart shows no. of dependents of respondents and percentages of different


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Graph: 6

DATA INTERPRETATION: The above chart denoting that investors giving most

preference to equity i.e. 44%, 12% of them debt instruments apart from these 24% of

them are preferring insurance, 78% of them prefer others.

80

05

1015202530354045

50

No. of respondents

Percentage


56/81

7. Which type of stock have you invested in?

Preferred Stock of Respondents No. of Respondents Percentage

Speculative Stocks 16 16

Blue chip Stocks 28 28

Growth Stocks 24 24Income Stocks 20 20

DATA INTERPRETATION: The above table shows that reveal that 08 respondents

re preferring speculative stocks, 14 of the investors preferring blue chip stocks, 12 of

them preferring growth stock and rest them preferring income stocks.

This chart shows preferred stock of respondents and percentages of different


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Graph: 7

INTERPRETATION: The above chart reveals that 16% of them preferring

speculative stocks,28% of the investors preferring blue chip stocks , 24% of them

preferring growth stocks and 20% of them preferring income stocks.

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5

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15

20

25

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No. of respondents

Percentage


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8. Which statement best describes you approach as an investor?

a) I am cautious about taking risks and I want to avoid losses.

b) I am somewhat caution about taking risks, and I can handle relatively small losses.

c) I can take some risk that is generally associated with greater account growth

potential but I wish to minimize short term losses in my account.

d) I am open to taking risk for growth potential. I am less concerned about short term

losses or gains; I am more invested in long term growth.

TABLE 8

This table shows preferred rate of risk of respondents and percentages of different types

of respondents.

DATA INTERPRETATION: The above table revealing that 16%of the investors are

taking moderate risk and they are also not ready to face short term losses and rest of

them are expecting either short term or long term returns.

This chart shows preferred rate of risk of respondents and percentages of


Type of Preferred Rate of Risk No. of Respondents Percentage

a 14 14

b 26 26

c 40 40

d 18 18

e 4 4

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Graph: 8

0

5

10

15

20

25

30

35

40

No .of respondents Percentage

a

b

c

d

e

INTERPRETATION: The above table revealing that 16% of the investors are taking

moderate risk and they are also not ready to face short term losses and rest of them are

expecting either short term or long term returns.

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9. When is your next big spending due/ expected?


Less than 1 year 46 46

1-3 years 32 32

3-5 years 10 10More than 5 years 12 12

DATA INTERPRETAION: The above table shows 23 of the respondents are

expecting their next big spending due/expected will be less than one year, 16 of them

expecting it will be between 1-3 years , 05 of them expecting between 2-3 years and 06

of them are expecting more than 5 years expenditure.

This charts shows next big spending due/ expected of respondents and

percentages of different types of respondents.

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Graph: 9

INTERPRETATION : The 46% of the respondents are expecting their next bigspending due/expected will be less than one year, 32% of them expecting it will be

between 1-3 years , 10% of them expecting between 3-5 years and 12% of them are

expecting more than 5 years expenditure.

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Less than 1year

1-3 years 3-5 years More than 5years

No. of respondents Percentage


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10. Do you have an emergency fund set aside to meet any unexpected

requirement?

Type of Respondents No. of Dependents Percentage

No 8 8

1 months Expenses 20 202-3 months Expenses 32 32

More than 6 Months 36 36

DATA INTERPRETATION: The above table shows that 18 of the respondents are

having emergency fund to meet above six months expenses, 16 of them having

emergency fund to meet 2-3 moths 10 expenses of them having one month expenses

and remaining of them are not having any emergency fund.

This chart shows an emergency fund set of respondents and percentages of


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Graph: 10

INTERPRETATION: The above chart showing that 36% of the respondents are

having emergency fund to meet above 6 months expenses, 32% of them having

emergency fund to meet 3-5 years, 20% of them having 1 months expenses and

remaining of them are not having any emergency fund.

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35

40

No. of

dependents

Percentage

No

1 months

expenses

2-3 months

expenses

More than 6

months


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11. If you receive an unexpected bonus equaling to 3 months salary, will

you______________?


Bank Deposit 40 40Instruments 22 22

Shares 20 20

Personal Use 18 18

DATAINTERPRETATION: The above table denoting that 20 of respondents prefer

a bank deposit at 5% of guaranteed returns, 11 of them are preferring instruments and

10 of them are interested to invest in shares.

This chart shows choice of investment of respondents and percentages of


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Graph: 11

INTERP

Investors Preferences Towards Equity Indiabulls 2011

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Transcript of Investors Preferences Towards Equity Indiabulls 2011