PRESENTATION ON INVESTMENT ADVISORY SERVICES

By

ULTIMATE INVESTMENTS

Nurturing Wealth

SHANTHA KUMAR T.S

INVESTMENT AVENUE

FINANCIAL ASSETS

DEBT (Bank Deposits,Postoffice

Schemes, Debentures, Bonds, Debt MF’s)

EQUITY Shares, Equity MF’s)

NON-FINANCIAL ASSETS

Real Estate

Gold

MARKET

DEBT EQUITY

Difference between Debt & Equity,Contd..

Capital growth is possible.No capital growth possible.

Governing body is SEBI.Governing body is RBI.

Ownership is available.No ownership on the company.

It is applicable (short & long).No capital gain tax is applicable.

Dividend is completely free from tax.Return is subject to tax.

EQUITYDEBT

Difference between Debt & Equity

EQUITYDEBT

The return in equity is called Dividend.

Nomenclature for the return is called Interest.

Not applicable.Frequency of return is possible.

Not applicable.Coupon rate & YTM are always variables.

Not applicable.Quantum of returns is always fixed.

Not applicable.Tenure of investment is always fixed.

Equity Investments

Stock market Mutual Fund

STOCK MARKET

TOTAL 23 STOCKS EXCHANGES IN INDIA

North Zone East Zone West Zone South Zone

Kanpur Bhubaneswar Ahmedabad Bangalore

Ludhiana Calcutta Baroda Chennai

New Delhi Gauhati Indore Cochin

Jaipur Patna Mumbai Coimbatore

Pune  Hyderabad

Rajkot Mangalore

OTC Exchange of India

National Stock Exch

Interconnected

Bombay Stock Exchange History

1830's Business on corporate stocks and shares In Bank and Cotton presses started in Bombay.1860-1865 Cotton price bubble as a result of the

American Civil War1870 - 90's Sharp increase in share prices of juteindustries followed by a boom in tea stocks and coal 1900s

1978-79 Base year of Sensex, defined to be 100.1986 Sensex first compiled using a market

Capitalization -Weighted methodology for 30 component stocks representing well-established companies across key sectors.

The voting machine & the weighing scales(short term volatility & long term returns)

N O . Y E A R E N D S E N S E X R O L L I N G 1 Y R G R O W T H

R O L L I N G 5 Y R G R O W T H

R O L L I N G 1 0 Y R G R O W T H

R O L L I N G 1 5 Y R G R O W T H

0 M a r - 7 9 1 0 01 M a r - 8 0 1 2 9 2 92 M a r - 8 1 1 7 3 3 53 M a r - 8 2 2 1 8 2 64 M a r - 8 3 2 1 2 - 35 M a r - 8 4 2 4 5 1 6 2 06 M a r - 8 5 3 5 4 4 4 2 27 M a r - 8 6 5 7 4 6 2 2 78 M a r - 8 7 5 1 0 - 1 1 1 99 M a r - 8 8 3 9 8 - 2 2 1 3

1 0 M a r - 8 9 7 1 4 7 9 2 4 2 21 1 M a r - 9 0 7 8 1 9 1 7 2 01 2 M a r - 9 1 1 1 6 8 5 0 1 5 2 11 3 M a r - 9 2 4 2 8 5 2 6 7 5 3 3 51 4 M a r - 9 3 2 2 8 1 - 4 7 4 2 2 71 5 M a r - 9 4 3 7 7 9 6 6 4 0 3 1 2 71 6 M a r - 9 5 3 2 6 1 - 1 4 3 3 2 5 2 41 7 M a r - 9 6 3 3 6 7 3 2 4 1 9 2 21 8 M a r - 9 7 3 3 6 1 0 - 5 2 1 2 01 9 M a r - 9 8 3 8 9 3 1 6 1 1 2 6 2 12 0 M a r - 9 9 3 7 4 0 - 4 0 1 8 2 02 1 M a r - 0 0 5 0 0 1 3 4 9 2 0 1 92 2 M a r - 0 1 3 6 0 4 - 2 8 1 1 2 1 32 3 M a r - 0 2 3 4 6 9 - 4 1 - 2 1 42 4 M a r - 0 3 3 0 4 9 - 1 2 - 5 3 1 52 5 M a r - 0 4 5 5 9 1 8 3 8 4 1 5

1 0 / 2 5 3 / 2 1 1 / 1 6 0 / 1 1P r o b a b i l i t y o f L o s s

STOCK MARKET

Primary Market (IPO's)

Secondary Market

PRIMARY MARKETINITIAL PUBLIC OFFERING (IPO's)

Company'sLead managerSyndicate memberBrokerRegistrar

Lead Manager The commercial or investment bank which

has primary responsibility for organizing a given credit or bond issuance. This bank will find other lending organizations or underwriters to create the syndicate, negotiate terms with the issuer, and assess market conditions. also called syndicate manager, managing underwriter or lead underwriter.

Syndicate Member

An investment bank, brokerage, or bank which participates in a syndicate.

BROKER An individual or firm

which acts as an intermediary between a buyer and seller, usually charging a commission. For securities and most other products, a license is required.

Registrar The organization, usually a

bank or a trust company, that maintains a registry of the share owners and number of shares held for a Mutual fund, bond or stock, and makes sure that more shares are not issued than are authorized.

What are the eligibility for on unlisted company for making a public issue?

An unlisted company has to satisfy the following criteria to be eligible to make a public issue. Networth of the co. should not be less than Rs.1 crore in last 3 out of last 5 years with minimum networth to be met during immediately preceding 2 years and track record of distributable profits for at least 3 Year out of immediately preceding 5 years and the issue size (i.e. offer through offer document + firm allotment + promoters’ contribution through the offer document) shall not exceed five (5) times its pre-issue networth. In case an unlisted company does not satisfy any of the above criterion, it can come out with a public issue only through the Book-Building process. In the Book Building process the company has to compulsorily allot at least sixty percent (60%) of the issue size to the Qualified Institutional Buyers (QIBs), failing which the full subscription monies shall be refunded.

Within how many days an investor should receive the refund order/allotment advise?

Dispatch of refund orders / allotment advice is to be within 2 working days of finalization of the basis of allotment. Companies are required to finalize the basis of allotment within 30 days from the closure of the issue in case of a fixed price issue and within 15 days from the closure of the issue in case of a book building issue or else they are liable to pay interest @ 15% p.a.

What is a Green-shoe Option?

Green Shoe option means an option of allocating shares in excess of the shares included in the public issue and operating a post-listing price stabilizing mechanism for a period not exceeding 30 days in accordance with the provisions of Chapter VIIIA of DIP Guidelines, which is granted to a company to be exercised through a Stabilizing Agent. This is an arrangement wherein the issue would be over allotted to the extent of a maximum of 15% of the issue size. From an investor's perspective, an issue with green shoe option provides more probability of getting shares and also that post listing price may show relatively more stability as compared to market.

What is a Rights Issue?

Rights Issue (RI) is when a listed company which proposes to issue fresh securities to its existing shareholders as on a record date. The rights are normally offered in a particular ratio to the number of securities held prior to the issue. This route is best suited for companies who would like to raise capital without diluting stake of its existing shareholders unless they do not intend to subscribe to their entitlements

MUTUAL FUND

What is a Mutual Fund?

Mutual Fund is a mechanism of pooling resources (Money) from investors & invest in securities (stocks & bonds) which will be managed by professional people called the Fund Managers also known as portfolio managers. The investment proceeds (loss or profits) are then passed on to the respective individual.

MUTUAL FUND BIRTH PLACE

UNITED KINGDOM

First mutual fund in India

Unit Trust of India

Year 1963

First Schemes US 64

First Private mutual fund in India

Kothari Pioneer

Year 1994

SPONSOR

APPOINTS Trustees Asset management company Custodians Registrars Banks Distributors

How is a mutual fund set up?

Mutual fund is set up in the form of a trust, Which has sponsor, trustees, asset management company

(AMC) and custodian. The trust is established by a sponsor or more than one

sponsor who is like promoter of a company. The trustees of the mutual fund hold its property for the

benefit of the unit holders. Asset Management Company (AMC) approved by SEBI

manages the funds by making investments in various types of securities.

Custodian, who is registered with SEBI, holds the securities of various schemes of the fund in its custody.

The trustees are vested with the general power of superintendence and direction over AMC. They monitor the performance and compliance of SEBI Regulations by the mutual fund.

Mutual Fund Operation Flow Chart

Organization of a Mutual Fund

Advantages of Mutual Funds Professional Management Diversification Return Potential Liquidity Transparency Flexibility Choice of schemes Tax benefits Well regulated

Disadvantages of Mutual Funds

Choice of Stocks Tailor made Portfolio Management Fees No Guaranteed Returns Management risk Discretion of fund manager Tax on profit made

Investment Parameters

Existing portfolio

Tax bracket

Future capital aspirationReturn

Future capital expenditureTax implication

Present expensesFlexibility

Present incomeLiquidity (tenure)

AgeSafety

PROFILE OF INVESTORPARAMETERS OF INVESTMENT

MUTUAL FUND

OPEN ENDED FUND

CLOSE ENDED FUND

MUTUAL FUND.

Switchover AllowedSwitchover Allowed

listed at stock ex.As Repurchased so not listed Stock ex.

Repurchase fixed time.Repurchased all the time

Duration 3,5and 7 yearsNo Duration

Open for Fixed PeriodOpen for all the time

CLOSE ENDEDOPEN ENDED

Types of Schemes By Structure

Open Ended Schemes Close Ended Schemes Interval Schemes

By Investment Objectives Growth Schemes Income Schemes Balance Schemes Money Market Schemes

Other Schemes Tax Saving Schemes

Special Schemes Index Schemes Sector Specific Schemes

Frequently Used TermsNet Asset Value (NAV)

Net Asset Value is the market value of the assets of the scheme minus its liabilities. The per unit NAV is the net asset value of the scheme divided by the number of units outstanding on the Valuation Date.

  Sale Price

Is the price you pay when you invest in a scheme. Also called Offer Price. It may include a sales load.

Repurchase PriceIs the price at which a close-ended scheme repurchases its units and it may include a back-end load. This is also called Bid Price.

Risk & Safety of a Mutual Fund

Sectoral Funds

Equity FundBalanced Fund

Index Fund

Income FundGilt Fund

Floating Fund Short-Term Fund

Liquid Fund

Risk

Medium Risk

Low Risk

What is Sector fund ? They are the riskiest among equity funds, as they invest only in

specific sectors or industries. The performance of sector funds is married to the fortunes of the specific sector or industry. This can work both ways for sector funds. One way to maximize your returns from sector funds is to get into the sector when it is expected to zoom and get out before it falls. However, it is easier said than done. Since you have managed a nodding acquaintance with various equity funds, how do you choose the right one for you? First, identify the category of equity funds you want to invest in. Next, evaluate the performance record of the fund. Find out how it has performed over the years compared to its competitors. Also, check out the reputation, transparency in operations, etc.Make sure your fund has a diversified portfolio. Avoid funds that have exposure to a few sectors or stocks, as the performance of the fund will be tied to the performance of only these stocks and not to the entire market performance. Also make sure that the fund has a diversified investor base. A fund with a few large investors will be forced to take orders from them, which may not be in your interest.

What is Equity Scheme ?

Equity schemes are those that invest predominantly in equity shares of companies. Although an equity scheme seeks to provide returns by way of capital appreciation, these schemes are exposed to higher risks and hence the returns may fluctuate. They invest only in stocks, and hence, are the riskiest among mutual fund schemes. However, these funds offer the possibility of superior returns since equities have historically outperformed all other asset classes. At present, there are four types of equity funds available in the market.

What is Balanced Schemes ?

Balanced schemes invest both in equity shares and in income-bearing instruments in such a proportion that the portfolio is balanced. They aim to reduce the risks of investing in stocks by having a stake in the debt markets. Thus debt and balanced schemes offer a reasonable return with a moderate risk exposure.

What is index fund ? These funds track a key stock market index,

like the Bombay Stock Exchange Sensex or the National Stock Exchange S & P CNX Nifty. They invest only in stocks that form the market index, as per the individual stock weight ages. The idea is to replicate the performance of the benchmarked index to near accuracy. Index funds are considered a passive investment vehicle, as the performance of the fund will be almost the same as the index concerned, except for few minor points.

What is Gilt fund ? Funds that invest only in government securities

and treasury bills. Such funds generally provide marginally higher returns than a money market fund, and are a good option for investors who seek protection of principal. Gilt funds can also be volatile due to increase or decrease in interest rates. Gilt schemes invest in government bonds, money market securities or some combination of these. They have medium to long-term maturities, typically of over one year and have moderate returns. Since the issuer is the central or state Governments, these funds have reduced risk of default and hence offer better protection of principal.

What is MIPs ? MONTHLY INCOME PLANS are basically

debt schemes, which make marginal investments in the range of 10-25 percent in equity to boost the scheme's returns. MIP schemes are ideal for investors who seek a slightly higher return than pure long-term debt scheme at a marginally higher risk. Declining returns from income funds and improved equity market performance are two main reasons, which have given an opportunity to launch these funds.

What is Debt Scheme ? Debt schemes invest mainly in income-bearing

instruments like bonds, debentures, government securities, commercial paper, etc. These instruments are much less volatile than equity schemes. Their volatility depends essentially on the health of the economy e.g., rupee depreciation, fiscal deficit, and inflationary pressure. Performance of such schemes also depends on bond ratings. These schemes provide returns generally between 7 to 12% per annum. These funds invest in fixed-income securities like bonds, Government of India securities, debentures, commercial paper, call money, etc. There are three types of debt funds.

What is Money Market Fund Money Market Mutual Funds (MMMFs) : Such

funds have an objective of taking advantage of the volatility in interest rates in the money market instruments. The funds are invested in certificate of deposits (CDs), interbank call money market, commercial papers, T-bills and short-term securities with a maturity horizon of less than one year. Investors can participate indirectly in the money market through MMMFs. E.g. Money Market Fund. Its objective is to preserve principal while yielding a moderate return. MMMF's are favoured by investors seeking low-risk investment avenues that offer instant liquidity.

WHAT IS ELSS EQUITY LINKED SAVINGS SAVINGS SCHEME

where investor is eligible to get tax benefits U/s 80 C of Income Tax Act, 1961 up to Rs. 1 Lakh in a financial year. It has a lock in period of 3 years from the date of investment which is minimum among any tax saving instrument available in India & with the highest returns on investments. The fund manager selects value stocks to invest in ELSS which gives good returns in 3 years

OPTIONS UNDER SECTION 80C Investment

Non-investment oriented The Investment options would comprise of the following Employee Provident Fund (EPF) and General Provident Fund(GPF) Public Provident Fund (PPF) National saving certificates (NSC) Bank deposits Life insurance premiums Equity linked saving schemes (ELSS) Pension policy premiums Pension schemes of mutual funds Senior citizens’ savings schemes (SCSS) The non-investment options would include: Home loan principal payout Children’s school and college fees

SYSTAMATIC INVESTMENT PLAN

1. FIXED DATE2. FIXED AMOUNT3. FIXED TENOUR

WHAT IS SIP

Date Amount NAV Units

10-Jan 10000 20 500.00

10-Feb 10000 18 555.56

10-Mar 10000 14 714.29

10-Apr 10000 19 526.32

10-May 10000 22 454.55

10-Jun 10000 20 500.00

Total 60000.00   3250.70Present NAV 20.00

Value of investment 65014.05

Gain 5014.05

FINANCIAL PLANNING

“If you burn your money today you will have a burning problem tomorrow”

A PRESENTATION ON SAVING, INVESTING AND INVESTMENT OPTIONS

PROCESS OF FINANCIAL PLANNING

Set a goal Prepare an investment plan Implement the financial plan Evaluate on a regular basis

Early start & regular Investments

350,000

10,133,456

330,000

7,643,653

300,000

4,999,569

Saves from 25 to 60 Saves from 27 to 60 Saves from 30 to 60

Savings

Returns

Assume an annual savings of Rs. 10,000 in an instrument providing return of 15 % p.a.

Cost of Living

Items 1987

( Rs )

1997

( Rs. )

( 100 gm tube )

8.05 18.90( 8.91 % )

Hamam Soap 3.05 7.85( 9.92 % )

Masala Dosa 3.50 14.00( 14.87 % )

Petrol( per

7.99 25.48( 12.30 % )

L P G Cylinder 56.15 137.85( 9.40 % )

225.00 510.00( 8.53 % )

Colgate toothpaste

Zodiac men’s shirt

Cost of Living

( 8.53 % )

Items 1997

( Rs )

2017

( Rs.)Colgate toothpaste

( 100 gm tube )

18.90 104.00

Hamam Soap 7.85 52.00

Masala Dosa 14.00 224.00

Petrol( per liter )

25.48 259.12

L P G Cylinder 137.85 830.85

Zodiac men’s shirt 510.00 2620.27

Assuming inflation to grow at the same rate during 1987-97

Escalating costs of Higher Education*

(*in Rs.)

YEAR 1990

0.5 lacs1.0 lacs0.3 lacs

YEAR2000

3.2 lacs

5.0 lacs

2.4 lacs

MBAMBBSEngineer

MBAMBBSEngineer

Escalating costs of Higher Education*

(*in Rs.)

YEAR 2000

YEAR2010

YEAR2020

MBAMBBSEngineer

MBAMBBSEngineer

MBAMBBSEngineer

3.2 lacs5.0 lacs2.4 lacs

8.3 lacs12.9 lacs6.2 lacs

21.5 lacs 33.6 lacs16.2 lacs

.

Estimate of marriage expenses

Rs. 1.34 croresRs. 51.9 lacsRs. 20.0 lacs

Rs. 67.3 lacsRs. 25.9 lacsRs. 10.0 lacs

Rs. 33.6 lacsRs. 13.0 lacsRs. 5.0 lacs

Rs. 13.5 lacsRs. 5.2 lacsRs. 2.0 lacs

Year 2020Year 2010Year 2000

* At an average annual inflation of 10% p.a.

INFLATION ROBS YOUR PURCHASING POWER(Assuming inflation @10% p.a.)

12,90033,500

87,000

226,000

10 years 20 years 30 years 40 years

Rs. 5,000 today

Equities are the best long term betCumulative annualized returns (1980 -98)

9.2%7.62%

9.74%

14.47%

20.16%

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

Inflation Gold Bank FD Co. FD Equities

Inflation Gold Bank FD Co. FD Equities

Source: RBI report on Currency & Finance (1997-98); BSE Sensitive index of Equity prices - BSE

Equities are the best long term betpercentage of studied period in which

`

56%

63%86%

37%

14%

44%

1 year 3 year 5 year

Stocks outperformed

KEY FOR SUCCESS IN FINANCIAL PLANNING

1. Risk Cover through Life Insurance General Insurance for insuring assets)

2. Invest only after ensuring adequate liquidity - have a minimum of 3-6 months of monthly expenses in liquid debt products

3. Classify the needs -Short term, Medium Term & Long Term4. Diversify your investments using the principles of Asset

Allocation5. While investing in equities, average out - timing is difficult6. Be realistic in expectations of return (sustaining high

returns is difficult - probably impossible!)7. Invest for the long term 8. Patience is the key

TERM PLAN Short Term

( 1 to 3 years)

Medium Term (3 to 5 years)

Long Term (>5 years)

Banks / Liquid Funds

Debt or Debt Related FundsMix of Debt/Equity or funds With

an appropriate mix (Balance)

Equity or Equity Related Funds

No Investment Product is Superior ! A Mix is Essential

Portfolio Growth (Equity)

Income (Bonds)

Liquidity(Banks)

Aggressive 75% 15% 10%

Balanced 50% 30% 20%

Moderate 35% 45% 20%

Conservative 20% 40% 40%

This is what Asset Allocation is all about!You need to choose a mix that suits your needs and risk

taking capacity

Tips To Smart Investing

.

Asset Allocation

Start Early

Stay Invested

Watch Out For Inflation & Taxes

Time Reduces Risk

Diversify

Don’t Time The Market

RISK FACTORS

All investments in Mutual Funds securities are subject to market risks and the NAV of the schemes may go up and down depending on the factors and forces affecting the securities market. There can be no assurance that the scheme’s investment objectives will be achieved. The past performance of the Mutual Funds is not necessarily indicative of the future performance of the scheme. The sponsor is not responsible or liable for any loss resulting from the operation of the scheme beyond the initial contribution of an amount of Rs. 1 lac made by it towards setting up of the Mutual are only the names of the schemes and do not in any manner indicate the quality of the schemes, its future prospects or returns. Please go through the offer document of the respective Funds before investing. Investors in the Schema's) are not being offered any guaranteed/assured returns.

SCAM IN INDIA

Ramalinga Raju

Harshad Mehta

Ketan Parekh

C R Bhansali

Cobbler scam

Sanjay Agarwal

Dinesh Dalmia

Abdul Karim Telgi

Virendra Rastogi

The UTI Scam

Uday Goyal

Ramalinga Raju - Rs 8,000 crore The biggest corporate scam in India has come from one of the most

respected businessmen. Satyam founder Byrraju Ramalinga Raju resigned as its chairman after admitting to cooking up the account books. His efforts to fill the "fictitious assets with real ones" through Maytas acquisition failed, after which he decided to confess the crime. With a fraud involving about Rs 8,000 crore (Rs 80 billion), Satyam is heading for more trouble in the days ahead. On Wednesday, India's fourth largest IT company lost a staggering Rs10,000 crore (Rs 100 billion) in market capitalisation as investors reacted sharply and dumped shares, pushing down the scrip by 78 per cent to Rs 39.95 on the Bombay Stock Exchange. The NYSE-listed firm could also face regulator action in the US. "I am now prepared to subject myself to the laws of the land and face consequences there of," Raju said in a letter to SEBI and the Board of Directors, while giving details of how the profits were inflated over the years and his failed attempts to "fill the fictitious assets with real ones." Raju said the company's balance sheet as of September 30 carries "inflated (non-existent) cash and bank balances of Rs 5,040 crore (Rs 50.40 billion) as against Rs 5,361 crore (Rs 53.61 billion) reflected in the books."

Harshad Mehta - Rs 4,000 crore He was known as the 'Big Bull'. However, his bull run did not last too

long. He triggered a rise in the Bombay Stock Exchange in the year 1992 by trading in shares at a premium across many segments. Taking advantages of the loopholes in the banking system, Harshad and his associates triggered a securities scam diverting funds to the tune of Rs 4000 crore (Rs 40 billion) from the banks to stockbrokers between April 1991 to May 1992. Harshad Mehta worked with the New India Assurance Company before he moved ahead to try his luck in the stock markets. Mehta soon mastered the tricks of the trade and set out on dangerous game plan. Mehta has siphoned off huge sums of money from several banks and millions of investors were conned in the process. His scam was exposed, the markets crashed and he was arrested and banned for life from trading in the stock markets. He was later charged with 72 criminal offences. A Special Court also sentenced Sudhir Mehta, Harshad Mehta's brother, and six others, including four bank officials, to rigorous imprisonment (RI) ranging from 1year to 10 years on the charge of duping State Bank of India to the tune of Rs 600 crore (Rs 6 billion) in connection with the securities scam that rocked the financial markets in 1992. He died in 2002 with many litigations still pending against him.

Ketan Parekh - Agrregate Borrowings Rs1,500 Cr

Ketan Parekh followed Harshad Mehta's footsteps to swindle crores of rupees from banks. A chartered accountant he used to run a family business, NH Securities. Ketan however had bigger plans in mind. He targeted smaller exchanges like the Allahabad Stock Exchange and the Calcutta Stock Exchange, and bought shares in fictitious names. His dealings revolved around shares of ten companies like Himachal Futuristic, Global Tele-Systems, SSI Ltd, DSQ Software, Zee Telefilms, Silver line, pent media Graphics and Satyam Computer (K-10 scripts). Ketan borrowed Rs 250 crore from Global Trust Bank to fuel his ambitions. Ketan along with his associates also managed to get Rs 1,000 crore from the Madhavpura ercantile Co-operative Bank. According to RBI regulations, a broker is allowed a loan of only Rs 15 crore (Rs 150 million). There was evidence of price rigging in the scripts of Global Trust Bank, Zee Telefilms, HFCL, Lupin Laboratories, Aftek Infosys and Padmini Polymer.

C R Bhansali - Rs 1,200 crore The Bhansali scam resulted in a loss of over Rs 1,200 crore (Rs

12 billion). He first launched the finance company CRB Capital Markets, followed by CRB Mutual Fund and CRB Share Custodial Services. He ruled like financial wizard 1992 to 1996 collecting money from the public through fixed deposits, bonds and debentures. The money was transferred to companies that never existed. CRB Capital Markets raised a whopping Rs 176 crore in three years. In 1994 CRB Mutual Funds raised Rs 230 crore and Rs 180 crore came via fixed deposits. Bhansali also succeeded to rise about Rs 900 crore from the markets. However, his good days did not last long, after 1995 he received several jolts. Bhansali tried borrowing more money from the market. This led to a financial crisis. It became difficult for Bhansali to sustain himself. The Reserve Bank of India (RBI) refused banking status to CRB and he was in the dock. SBI was one of the banks to be hit by his huge defaults.

Cobbler scam $600 million Sohin Daya, son of a former Sheriff of Mumbai, was

the main accused in the multi -crore shoes scam. Daya of Dawood Shoes, Rafique Tejani of Metro Shoes, and Kishore Signapurkar of Milano Shoes were arrested for creating several leather co-operative societies which did not exist. They availed loans of crores of rupees on behalf of these fictitious societies. The scam was exposed in 1995. The accused created a fictitious cooperative society of cobblers to take advantage of government loans through various schemes.Officials of the Maharashtra State Finance Corporation, Citibank, Bank of Oman, Dena Bank, evelopment Credit Bank, Saraswati Co-operative Bank, and Bank of Bahrain and Kuwait were also charge sheeted.

Dinesh Dalmia - Rs 595 crore

Dinesh Dalmia was the managing director of DSQ Software Limited when the Central Bureau of Investigation arrested him for his involvement in a stocks scam of Rs 595 crore (Rs 5.95 billion). Dalmia's group included DSQ Holdings Ltd, Hulda Properties and Trades Ltd, and Power flow Holding and Trading Pvt Ltd. Dalmia resorted to illegal ways to make money through the partly paid shares of DSQ Software Ltd, in the name of New Vision Investment Ltd, UK, and unallotted shares in the name of Dinesh Dalmia Technology Trust. Investigation showed that 1.30 crore (13 million) shares of DSQ Software Ltd had not been listed on any stock exchange.

Abdul Karim Telgi - Rs 171.33 crore He paid for his own education at Sarvodaya Vidyalaya by

selling fruits and vegetables on trains. He is today famous (or infamous) for being he man behind one of The Telgi case is another big scam that rocked India. The fake stamp racket involving Abdul Karim Telgi was exposed in 2000. The loss is estimated to be Rs 171.33 crore (Rs 1.71 billion), it was initially pegged to be Rs 30,000 crore (Rs 300 billion), which was later clarified by the CBI as an exaggerated figure. In 1994, Abdul Karim Telgi acquired a stamp paper license from the Indian government and began printing fake stamp papers. Telgi bribed to get into the government security press in Nasik and bought special machines to print fake stamp papers.Telgi's networked spread across 13 states involving 176 offices, 1,000 employees and 123 bank accounts in 18 cities.

Virendra Rastogi Rs 43 crore

Virendra Rastogi chief executive of RBG Resources was charged with for deceiving banks worldwide of an estimated $1 billion. He was also involved in the duty-drawback scam to the tune of Rs 43 crore (Rs 430 million) in India. The CBI said that five companies, whose directors were the four Rastogi brothers -- Subhash, Virendra, Ravinde and Narinder -- exported bicycle parts during 1995-96 to Russia and Hong Kong by heavily over invoicing the value of goods for claiming excess duty draw back from customs

The UTI Scam - Rs 32 crore Former UTI chairman P S Subramanyam and two executive

directors -- M Kapur and S K Basu -- and a stockbroker Rakesh G Mehta, were arrested in connection with the 'UTI scam'. UTI had purchased 40,000 shares of Cyberspace between September 25, 2000, for about Rs 3.33 crore (Rs 33.3 million) from Rakesh Mehta when there were no buyers for the scrip. The market price was around Rs 830. The CBI said it was the conspiracy of these four people which resulted in the loss of Rs 32 crore (Rs 320 million). Subramanyam, Kapur and Basu had changed their stance on an investment advice of the equities research cell of UTI. The promoter of Cyberspace Infosys, Arvind Johari was arrested in connection with the case. The officials were paid Rs 50 lakh (Rs 5 million) by Cyberspace to promote its shares. He also received Rs 1.18 crore (Rs 11.8 million) from the company through a circuitous route for possible rigging the Cyberspace counter.

Uday Goyal - Rs 210 crore Uday Goyal, managing director of Arrow Global

Agritech Ltd, was yet another fraudster who cheated investors promising high returns through plantations. Goyal conned investors to the tune of over Rs 210 crore (Rs 2.10 billion). He was finally arrested. The plantation scam was exposed when two investors filed a complaint when they failed to get the promised returns. Over 43,300 persons had fallen into Goyal's trap. Several criminal complaints were filed with the Economic Offences Wing. The company's directors and their relatives had misused the investors' money to buy properties. The High Court asked the company to sell its properties and repay its investors.

Sanjay Agarwal - Rs 92 crore Home Trade had created waves with celebrity endorsements.

But Sanjay Agarwal's finance portal was just a veil to cover up his shady deals. He swindled a whopping Rs 600 crore (Rs 6 billion) from more than 25 cooperative banks. The government securities (gilt) scam of 2001 was exposed when the Reserve Bank of India checked the accounts of some cooperative banks following unusual activities in the gilt market. Co-operative banks and brokers acted in collusion in a bid to make easy money at the cost of the hard earned savings of millions of Indians. In this case, even the Public Provident Fund (PPF) was affected. A sum of about Rs 92 crore (Rs 920 million) was missing from the Seamen's Provident Fund. Sanjay Agarwal, Ketan Sheth (a broker), Nandkishore Trivedi and Baluchan Rai (a Hong Kong-based Non-Resident Indian) were behind the Home Trade scam.

STOCK MARKET CRASH 1929 The 1920's were a time of unbelievable

prosperity. The stock market was going through the roof and the United States seemed to have the formula for limitless prosperity. However, the same formula that generated all of that profit would also be the cause of Black Tuesday. Investment during the 1920's was based on the unstable however, adding to the crash of '29 was the slowing economy. The desire for consumer durables (expensive items refrigerators, radios, and automobiles) went down as Americans became satisfied with what they had. This in turn affected the companies and workers that produced these items. A downward spiral was set in motion. The crash of 1929 ended the seemingly infinite prosperity of the 1920s. Millionaires had become paupers overnight. Those who believe in the strength of the economic bubble and invested everything they had lost everything they had. Of course, the economy weakened and the unemployment skyrocketed. The Great Depression had begun.

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