Pioneer Institute Of Management

Role of back office in a share broking firm

ON THE JOB TRAINING

AT
ANGEL BROKING LTD.
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ACKNOWLEDGEMENT
Intellectual alertness, creativity and innovation go side by side in
making of a Manager . In this context the role of successful execution of
the project work can not be denied .On this note , I feel inexpedient to
express my profound indebtness and sincere thanks to our venerable
Mr. G.B.Bisaria ,for indefatigable cooperation analytical guidance and
boundless endeavors which gave me great help and revitalization at
every step in completing my project.

My heart felt veneration is due to Mr. G.B.Bisaria (Director, Pioneer

Institute of Management) for his timely advice to improve upon
shortcomings and I am thankful to him for his approval to perform this
dissertation.I would also like to take this opportunity to convey my
respect and special gratitude towards Mr. Mahaveer chaudhary (branch
manager, Angel Broking ) who considered me worthy of doing project
in their esteem establishment and never failed to satisfy my over zeal
to obtain information.

No language is ever adequate to express my gratitude towards Ms.

Spriha jain(KYC & CRMS In charge, Angel Broking) and Mr. Ritwik
tripathi( Sales manager, Angel Broking) for their training . I would also
like to express my profound indebtness and sincere thanks to Mr. Binu
Mathew and Ms. Varsha Maheshvary ( Faculty guide ,Pioneer Institute
of management) for their guidance.Working on this project has been a
great experience . I am thankful to all concerned people who have
played active role in successful completion of this project.
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SR. NO. PARTICULARS PAGE NO.

1. Company profile 9
Vision and business philosophy 9
Company history
11
Growth prospectus
Company’s logo
Product and services
Fundamental research services
Technical research services
Investment advisory desk
Portfolio management services
Angel commodity advantages
Depository participant services
Competitors
SWOT analysis
Awards won by Angel broking
Angel broking’s organizational structure
Angel group companies
Regional offices

2. Industry overview
stock market
stock exchange
Different segments of stock exchange
Important terms to know about share market
KYC
back office
demat a/c
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Difference between depository and depository participant

CDSL and NSDL
Types of demat a/c
Account opening requirement
RTGS and NEFT
Client relationship management
Format of happiness survey

3.
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IT’S ALL ABOUT ANGEL

BROKING
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COMPANY’S PROFILE

NAME OF THE COMPANY: ANGEL STOCK BROKING LTD.

REGISTERED OFFICE: G-1, Akruti Trade Centre,

Road No. 7, MIDC Marol,

Andheri (E),

Mumbai – 400 093

BRANCH OFFICE: ANGEL STOCK BROKING LTD.

Mehta bhavan 2nd floor

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Shastri circle,Udaipur 313003

FORM OF ORGANISATION: Private Sector

PROMOTER: Mr. Dinesh Thakkar

VISION AND BUSINESS PHILOSOPHY

THE VISION
To provide the best value for money to investors through innovative
products, trading/investment strategies, state-of the art technology,
and personalized service.

BUSINESS PHILOSOPHY
 Ethical practices and transparency in all our dealing .

 Customer’s interest above our own.

 Always deliver what we promise .

 Effective cost management.

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COMPANY HISTORY

 Angel Broking in Customer relations began more than 20 years ago

.Today Angle Broking has emerged as a premium Indian stock broking
and wealth management house with an absolute focus on retail ,and a
commitment to provide ” real value for money” to all it’s clients .

 The Angel group is a member of the Bombay stock exchange (BSE)

,National stock exchange (NSE) and the two leading commodity
exchanges in the country that is NCDEX and MCX .Angel Broking is also
registered as a depository participant with CDSL .

 Angel is also into the distribution of third party product like life
insurance ,mutual funds of all AMC’s ,fixed deposits ,credit cards ,loan
products and IPO’s angel is also offering currency trading on currency
futures through MCX and NSC.

 Promoted by Dinesh Thakkar , Angel Broking started in 1987 as a sub-

broker business with a team size of three .today team Angel has over
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5000 +direct employees functioning through a nation wide network of

31 regional hubs ,145 Branches ,3 Private client group offices and
6700+sub-brokers and business associates .

GROWTH PROSPECTUS
 Angel envisages it’s current growth rate of 100 % to continue over the
next 2 years & has an aggressive retail expansion plan to reach smaller
cities & widen it’s client base .The company growth plans have also
gathered greater momentum with recent investment of Rs. 152crores
by the international finance corporation (IFC) ,in Angel global capital
Pvt. Ltd . the holding company of the Angel group .This is the first time
that IFC, the private investment arm of the world bank has invested in
the equity broking & wealth management space
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PRODUC
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TS AND SERVICES
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 FUNDAMENTAL RESEARCH SERVICES :

 The Sunday Weekly Report :
This weekly report is the ace of all reports. It offers a
comprehensive market overview and likely trends in the week
ahead. It also presents few top picks based on an in-depth
analysis of technical and fundamental factors. It gives short term
and long term outlook on these scrips, their price targets and
trading strategies. Another unique feature of this report is that it
provides an updated view of about 70 prominent stocks on an
ongoing basis.

 The Industry Watch :

This report provides an in-depth analysis of specific
industries which are likely to outperform others in the economy. It
analyzes their strengths and weaknesses and ascertains their
future outlook. The final view is arrived at after thorough
interaction with industry experts. Also comparative performances
of various companies in the sector are evaluated and top picks
are recommended.
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 Stock Analysis :
Angel’s stock research has performed very well over the
past few years and the Angel Model Portfolio has consistently
outperformed the benchmark indices. The fundamentals of select
scrips are thoroughly analyzed and an actionable advice is
provided along with investment rationale for each scrip.

 Flash News :
Key developments and significant news announcements that
are likely to have an impact on markets / scrips are flashed live on
trading terminals. Flash news keeps the market participants
updated on an online basis and helps them to reshuffle on their
holdings

 TECHNICAL RESEARCH SERVICE :

 Nifty Tracker :
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Nifty Futures is the most traded instrument with highest

volumes in F & O and excellent liquidity. The team tracks the
Nifty Future and generates calls based on unique trading system
which is a result of their focused research over the past few
years. The objective is to generate positive returns for traders
who are looking for a high risk / high reward product.

 Online Chart :
An online forum to help clients, specifically day traders in
judging the directions of the market and stocks which are in the
limelight.

 Intraday Calls :
For day traders, Angel provides intra-day calls with entry,
exit and stop loss levels during market hours. These calls are
flashed on their terminals. Their analysts continuously track the
calls and provide recommendations according to the market
movements.

 Position Calls :
Angel’s “Position Trading Calls” are based on thorough
analysis of the price movement in select scrips. These calls are
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for a 10-15 day time span with stop loss and target levels. These
calls are flashed on their terminals during market hours.

 Derivative Strategies :
Their analysts take view on the Nifty and select stocks based
on the derivatives data and technical tools. Suitable “Derivative
Strategies” are devised, which are flashed on their terminals and
published in their reports.

 Futures Calls :
A customized product for HNIs to help them trade with
leveraged position; wherein clients are advised on the stocks with
entry, exit and stop loss level for short term benefits. Over and
above this, financial status of the calls is monitored at all times.

 INVESTMENT ADVISORY DESK :

At Angel, they have a dedicated Investment Advisory Desk :

 To help manage client’s equity portfolio and create wealth

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 To help client understand their risk profile and define investment

goals realistically

 To minimize client’s risk and maximize their returns

 To help client decide what to buy / sell and when to buy / sell

 To help client’s understand macro-economic trends and sectoral /

company developments

 To help client restructure their portfolio based on sound research

 PORTFOLIO MANAGEMENT SERVICES :

Angel offers discretionary PMS to investors in order to assist

them in managing their funds amidst continuous changing market
dynamics and increasing complexities of investing. Investing in
equity market requires in-depth knowledge and thorough analysis
coupled with clear understanding of domestic and international
economies. Investors need the services of an expert to manage
their funds and deliver good returns in diverse market conditions.
Continuous wealth creation with and emphasis on capital
preservation is essential in today’s complex markets.
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In order to systematically diversify the holdings of clients across varied

sectors and with and intention to give them handsome returns, Angel
devised the concept of the Model Portfolio :

 Angel came out with its first Model Portfolio in August 2002

 Since then it has come out with Model Portfolios which have
consistently outperformed the Sensex YOY

 In fact the latest model portfolio by Angel has successfully

outperformed the Sensex by a whooping 80%

The Portfolio Management Process starts with understanding

each investor’s risk appetite and return expectations. The Portfolio
Management Team not only draws support from Angel’s in-house
research team for new investment ideas but also has its own stocks
picking by adopting bottom up research.

 Salient features of PMS schemes :

 100% discretionary scheme

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Benefits of Angel PMS :

 Understanding risk : At Angel, utmost emphasis is given to

understanding the risk profile of an investor.

 Periodic Evaluation : Periodic evaluation of the Model Portfolio is

carried out and market movements are cashed upon.

 Administrative Convenience : Angel focuses on providing hassle

free administrative / operational support and customized services.

 Transparency : Regular statements and updates as well as online

access to information required for investment.

 Regular Analysis and Monitoring : Investments undergo regular

monitoring and analysis to check any deviation from the
structured goal ensuring creation of wealth over a period of time.

 Professional Management : PMS is provided to professional

management by experts on equity with an aim to optimize returns.
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 ANGEL COMMODITY ADVANTAGES :

 Top Quality Research :
o Professionally qualified analysts with rich industry
experience
o Research on 25 agro commodities, precious metals, base
metals, energy products and polymers

 e-Broking :
o Single screen customized market watch for MCX / NCDEX
with BSE / NSE
o Streaming quotes and intra day calls

 DP Facilities in Commodities Trading on

CDSL
 24x7 Online Back-office
 Efficient Risk Management
 Competitive Brokerage Rates
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 IPO DISTRIBUTION AND

ADVISORY :

o Wide network of branches for better customer

reach.

o Dedicated Research Teams generating sector

related reports.

o Ease in investing with informed decision making.

o Advisory Help Desk for all IPO related queries.

ONLINE TRADING :
Specially designed for the net savvy traders and investors who
prefer operating from their home or office through the internet. The
investor can access state of the art Technology with three different
e-broking products and voila trading on BSE, NSE, F & O, MCX and
NCDEX.
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ONLINE PRODUCTS

 ANGEL DIET:
Application based product for Traders.

 ANGEL ANYWHERE:
Application based product for Traders with Charts.

 ANGELTRADE:
Browser based product for Active Investors.

 DEPOSITORY PARTICIPANT SERVICES :

Angel Broking Ltd. is a DP Service provider through CDSL.
They offer Depository Services to create a seamless transaction
platform to execute trades through Angel Group of Companies and
settle these transactions through Angel Depository Services.
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 Hassle free automated pay-in of client’s sell obligations by Angel

Broking Ltd. / Angel Capital & Debt Market Ltd.

 Instant disbursement of non-cash benefit like bonus and rights

 Wide Branch coverage

 Personalized / Attentive services of trained and dedicated staff

 Centralized billing and Accounting

 Acceptance and Execution of instructions on “fax”

 “Zero” upfront payment and lowest transaction charges

 Daily statement of transactions and holding statements on e-mail

 No charges for extra transaction statement and holding statement

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 All in one combined Monthly “Bill-cum-Transaction-cum-Holding-

cum-Ledger” statement

COMPETITORS
Indiabulls :-Gagan banga(C E O Indiabulls)

Indiabulls was incorporated in 2000, and became Indiabulls Financial

Services Limited as a Public Limited Company in 2004. Today it enjoys a
leading position in finance and real estate services in India. Presently its
expanse includes around 640 branches and over 4.5 Lacs customers.

Indiabulls Financial Services Ltd. has listings in National Stock Exchange

(NSE), Bombay Stock Exchange (BSE) and Luxembourg Stock Exchange.
The net worth of Indiabulls in the present financial year is 510 million
US Dollars. Some of the largest financial institutions like Fidelity Funds,
Goldman Sachs, Merrill Lynch, Morgan Stanley, and Farallon Capital are
the majority shareholders in Indiabulls.

 HSBC invest:-Manasije mishra(CEO &MD)

HSBC InvestDirect (India) Limited (HIDL) is listed on the Bombay

Stock Exchange Limited and National Stock Exchange Limited. HIDL
through its Subsidiaries offer a comprehensive range of value-added
products and services backed by a professional service orientation for
retail and corporate customers. The business activities undertaken by
HIDL through its subsidiaries include (i) Securities Broking; (ii)
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Investment Advisory; (iii) Distribution of financial products; and (iv)

Securities related financing (NBFC).

 India infoline

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

 Motilal oswal
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 The Issuer was incorporated under the Companies Act as "Motilal Oswal
Financial Services Limited" vide Certificate of Incorporation No. 11- 153397
dated May 18, 2005 issued by the ROC and received the certificate of
commencement of business on June 3, 2005.

The Issuer, along with its Subsidiaries, offers a diversified range of financial
products and services such as retail wealth management including
commodities broking, portfolio management services and institutional
broking, investment banking services, and venture capital management and
advisory.

Mr. Motilal Oswal and Mr. Raamdeo Agrawal initially conducted business as
sub-brokers. Around 1990 Mr. Motilal Oswal acquired membership of the
BSE. Subsequently, Vasant Holding Private Limited (VHPL), a group
company acquired the membership of the NSE in 1994. On July 5, 1994, Deo
Securities Private Limited was incorporated by Mr. Motilal Oswal and Mr.
Raamdeo Agrawal to carry on the business of stock broking and other
financial services.

 Future capital

Future Capital Holdings Ltd is engaged in Financial Services business.

Company is listed on both NSE and BSE. NSE symbol for Future Capital
Holdings Ltd is 'FCH' and BSE code for Future Capital Holdings Ltd is
'532938'.Future Capital Holdings Limited ("FCH") is the financial services
arm of the Future Group which is a business group focusing on consumption-
led businesses in India. FCH is promoted by Pantaloon Retail (India) Ltd
("PRIL"), the flagship company of the Future Group.
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They have three primary lines of business&; investment advisory services,

retail financial services and research.
Investment Advisory Services:
They provide Private Equity and Real Estate investment advisory services to
onshore and offshore clients. These investment advisory services include
investment analysis, research and recommendations.

 Rel. capital

Reliance Money is an endeavour to change the way India trades in

financial markets and avails of various financial services. Reliance
Money ensures maximum security with a unique security token to keep
your online account safe.

 Religare

Religare is a global financial services group with a presence across Asia,

Africa, Middle East, Europe and the Americas. In India, Religare’s largest
 P a g e | 27

market, the group offers a wide array of products and services ranging from
insurance, asset management, broking and lending solutions to investment
banking and wealth management. The group has also pioneered the concept of
investments in alternative asset classes such as arts and films. With over
10,000 employees across multiple geographies, Religare serves over a million
clients, including corporates and institutions, high net worth families and
individuals, and retail investors.

 Anand rathi

AnandRathi (AR) is a leading full service securities firm providing the

entire gamut of financial services. The firm, founded in 1994 by Mr.
AnandRathi, today has a pan India presence as well as an international
presence through offices in Dubai and Bangkok.

AR provides a breadth of financial and advisory services including

wealth management, investment banking, corporate advisory,
brokerage & distribution of equities, commodities, mutual funds and
insurance - all of which are supported by powerful research teams.

The firm's philosophy is entirely client centric, with a clear focus on

providing long term value addition to clients, while maintaining the
highest standards of excellence, ethics and professionalism. The entire
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firm activities are divided across distinct client groups: Individuals,

Private Clients, Corporates and Institutions.

 Sharekhan

Sharekhan is an equities focused organization tracing its lineage

to SSKI, a veteran equities solutions company with over 8 decades of
experience in the Indian stock markets.

In the stock markets. Sharekhan does not claim expertise in too

many things. Sharekhan's expertise lies in stocks and that's what he
talks about with authority. So when he says that investing in stocks
should not be confused with trading in stocks or a portfolio-based
strategy is better than betting on a single horse, it is something that is
spoken with years of focused learning and experience

Sharekhan brings a user- friendly online trading facility, coupled

with a wealth of content that will help investors stalk the right shares.
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SWOT ANALYSIS

SWOT analysis is a strategic planning method used to evaluate the

Strengths, Weaknesses, Opportunities, and Threats involved in a project or
in a business venture.

STRENGTH

 The people at Angel broking compete within themselves , setting up

their own personal challenges to exceed past performances.

 Angel has over 5000+direct employees functioning through a nation-

wide network of 31 regional hubs, 145 branches, 3 private client group
offices, and 6700 +sub brokers & business associates.

OPPORTUNITY
 clients through multiple channels –retail outlets ,phone trade and the
internet platform. Angel’s understanding about retail investors as well as
The retail business provides equity investment solutions to over 6 lakh
those of channel partners.

WEAKNESS
 High employee turnover.
 Competition from banks.
THREATS
 Increasing number of local players.
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 Past image of Stock market

AWARDS WON BY ANGEL

BROKING-
May 28, 2009: Angel Broking, one of India’s premium stock broking &
wealth management
houses bagged two prestigious awards
“Best Retail Broking House”
&
“Broking House with Largest Distribution
Network”
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Angel,s organizational structure

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ANGEL GROUP COMPANIES

  Member on the BSE Depository
  Angel Broking Ltd.
Participant with CDSL
  Angel Capital & Debt   Membership on the NSE Cash and
Market Ltd. Futures & Options Segment
  Angel Commodities
  Member on the NCDEX & MCX
Broking Ltd.
  Angel Securities Ltd.   Member on the BSE
  Angel Infin Pvt. Ltd.   NBFC registered with RBI
  Mimansa Systems Pvt.
  For Software Development
Ltd.
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REGIONAL OFFICES
 Ahmedabad

 Bangalore

 Chennai

 Hyderabad

 Indore

 Jaipur

 Kolkata

 Mumbai

 New Delhi

 Pune

 Rajkot
 Surat
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INDUSTRY OVERVIEW
WHAT IS STOCK MARKET?
A stock market or equity market is a public market (a loose network of
economic transactions, not a physical facility or discrete entity) for the
trading of company stock and derivatives at an agreed price; these are
securities listed on a stock exchange as well as those only traded
privately.

WHAT IS STOCK EXCHANGE?

 A stock exchange is an entity which provides "trading" facilities for stock
brokers and traders, to trade stocks and other securities. Stock
exchanges also provide facilities for the issue and redemption of
securities as well as other financial instruments and capital events
including the payment of income and dividends. The securities traded
on a stock exchange include shares issued by companies, unit trusts,
derivatives, pooled investment products and bonds.

 To be able to trade a security on a certain stock exchange, it has to be

listed there. Usually there is a central location at least for
recordkeeping, but trade is less and less linked to such a physical place,
as modern markets are electronic networks, which gives them
advantages of speed and cost of transactions. Trade on an exchange is
by members only.
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 The initial offering of stocks and bonds to investors is by definition done

in the primary market and subsequent trading is done in the secondary
market. A stock exchange is often the most important component of a
stock market. Supply and demand in stock markets is driven by various
factors which, as in all free markets, affect the price of stocks (see stock
valuation).
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DIFFERENT SEGMENTS OF STOCK MARKET

BSE & NSE
 NSE Stands for National Stock Exchange. It has more than 2000 stocks
from different sectors listed with it. It is fully automated electronic
order processing exchange. Nifty is major index of NSE and it comprise
of 50 scripts from different sectors. NIFTY - NATIONAL FIFTY is an
"index". What is an index? An index is basically an indicator. It gives you
a general idea about whether most of the stocks have gone up or most
of the stocks have gone down. The Nifty is an indicator of all the major
companies of the NSE.

 BSE Stand for Bombay Stock Exchange. It is India's Oldest Stock

Exchange with listing of over 4000 scripts with it. This not fully
automated yet but progress towards full automation is underway.
SENSEX is major index of BSE and it comprise of 30 scripts from
different sectors.SENSEX - SENSITIVITY INDEX :An abbreviation of the
Bombay Exchange Sensitive Index (Sensex) - the benchmark index of
the Bombay Stock Exchange (BSE).

MCX & NCDEX

 Multi Commodity Exchange (MCX): is an independent commodity
exchange based in India. It was established in 2003 and is based in
Mumbai. It has an average daily turnover of around US$1.55 billion.

 National Commodity & Derivatives Exchange Limited (NCDEX): is an online

commodity exchange based in India. It was incorporated as a private
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limited company incorporated on April 23, 2003 under the Companies Act,
1956.

MCX SX
 MCX Stock Exchange (MCX-SX) is an India-wide electronic platform for
trading in currency futures under the regulatory control of Securities and
Exchange Board of India (SEBI) and Reserve Bank of India (RBI). It is
jointly promoted by Financial technologies and MCX. It started
operations on the 6th of October 2008 .

FUTURES AND OPTIONS

FUTURES
Futures trading is different from investing in the stock market or bonds since
you don’t actually own anything. In futures trading, you are speculating on
the future direction of the price in the commodity you are trading. This is
different for beginners in futures trading; it is like a bet on the future price
direction. The terms "buy" and "sell" merely indicate the direction you
expect future prices will take. He or she must only deposit sufficient capital
with a brokerage firm to insure that he will be able to pay the losses if his
trades lose money.
 
Futures trading is a sort of insurance plan for those who are trading and
investing.A farmer may sell futures on his wheat crop if he thinks the price
will go down before the harvest; conversely, a bread manufacturer may buy
futures if they think the price of wheat is going to rise before the harvest.
Regardless of the price movement, both are guaranteed their price. The final
 P a g e | 38

component of the equation is the investor in futures trading who looks for
changes in the futures markets and seeks to gain advantages by buying or
selling at a profit.

OPTIONS
The power of options lies in their versatility. They enable you to adapt or
adjust your position according to any situation that arises. Options can be as
speculative or as conservative as you want. This means you can do
everything from protecting a position from a decline to outright betting on
the movement of a market or index.The two types of options are calls and
puts:
A call gives the holder the right to buy an asset at a certain price within a
specific period of time. Calls are similar to having a long position on a stock.
Buyers of calls hope that the stock will increase substantially before the
option expires.

A put gives the holder the right to sell an asset at a certain price within a
specific period of time. Puts are very similar to having a short position on a
stock. Buyers of puts hope that the price of the stock will fall before the
option expires.
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IMPORTANT TERMS TO KNOW IN SHARE MARKET

AND SHARE TRADING

Open- The first price at which the stock opens when market opens in
the morning.

 High- The stock price reached at the highest level in a day.

 Low- The stock price reached the lowest level in a day.

 Close- The stock price at which it remains after the end of market
timings or the final price if the stock when the market close for a day.

 Volume- Volume is nothing but quantity.

 Bid- The buying price is called as Bid price.

 Offer- The selling price is called offer price.

Bid quantity- The total number of shares available for

buying is called bid quantity.

 Offer quantity- The total no. shares available for selling is called offer
quantity.

 Buying and selling of shares- Buy is also called as demand or bid and
selling is also called as supply or offer . First selling and then buying (this
only happens in intraday) is called as shorting of shares or short sell.

 Share trading- Buying and selling of shares is called share trading.

 P a g e | 40

 Online share trading – Doing share trading with the help of computer
or, internet connection and with trading and demat a/c is called online
share trading.

 Offline share trading- Doing share trading with the help of broker or
through phone is called offline trading.

 Intra day trading- Buying and selling of shares on daily basis is called
Intraday trading.

 Delivery trading- You have to take the delivery of shares and after
getting these shares in your demat a/c you can sell them at any time.

 Stop loss- Stop loss is trigger price to reduse the losses .

 Transaction- One complete cycle of buying and selling of shares is

known as transection.

 Lot-An order with a volume

 DIS-Delivery instruction slip

 T+2-Whenever you buy or sell a stock, bond or mutual fund, there are
two important dates of which you should always be aware: the
transaction date and the settlement date. The abbreviations T+1, T+2
refer to the settlement date of security transactions and denote that
the settlement occurs on a transaction date plus one day, plus two
days, and plus three days.

WHAT IS KYC
 P a g e | 41

 Know your clients (KYC) is the due diligence and bank regulation that
financial institutions and other regulated companies must perform to
identify their clients and ascertain relevant information pertinent to
doing financial business with them. KYC is typically a policy
implemented to conform to a customer identification program
mandated under the Bank Secrecy Act . Know your customer policies
are becoming increasingly important globally to prevent identity theft
fraud, money laundering and terrorist financing. In a simple form these
rules may equate to answering twelve questions, but this is the tip of
the iceberg and regulators now expect much more.

 One aspect of KYC checking is to verify that the customer is not on any
list of known fraudsters, terrorists or money launderers.

 Beyond name matching, a key aspect of KYC controls is to monitor

transactions of a customer against their recorded profile, history on the
customers account(s) and with peers.

 Know Your Customer processes are also employed by regular

companies of all sizes, for the purpose of ensuring their proposed
agents', consultants' or distributors' anti-bribery compliance. Banks,
insurers and export credit agencies are increasingly demanding that
customers provide detailed anti-corruption due diligence information,
to verify their probity and integrity.

WHAT IS BACK OFFICE?

 Refers to systems that do not deal directly with the customer such as
inventory management and accounts payable. Administration and
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support personnel in a financial services company. They carry out

functions like settlements, clearances, record maintenance, regulatory
compliance, and accounting. When order processing is slow due to high
volume, it is commonly referred to as "back office crunch."

WHAT IS DEMAT A/C?

 Demat refers to a dematerialised account.

 Just as you have to open an account with a bank if you want to save your
money, make cheque payments etc, you need to open a demat account if
you want to buy or sell stocks.

 So it is just like a bank account where actual money is replaced by shares.

WHAT IS THE DIFFERENCE BETWEEN

DEPOSITORY AND DEPOSITORY
PARTICIPANT?
 A depository is a place where the stocks of investors are held in
electronic form.

 The depository has agents who are called depository participants (DPs).
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 Think of it like a bank. The head office where all the technology rests
and details of all accounts held is like the depository. And the DPs are
the branches that cater to individuals.

 There are only two depositories in India -- the National Securities

Depository Ltd (NSDL) and the Central Depository Services Ltd (CDSL)

WHAT IS CDSL & NSDL?

 NSDL, the first and largest depository in India, established in August 1996
and promoted by institutions of national stature responsible for economic
development of the country has since established a national
infrastructure of international standards that handles most of the
securities held and settled in dematerialized form in the Indian capital
market.

 CDSL commenced it’s operations during February 1999.CDSL was

promoted by Bank of Baroda, Bank of India, State Bank of India, HDFC
Bank in association with Stock Exchange Mumbai.
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IN DP ACCOUNT OPENING FORM :-

1. Minor details like name of the branch, name of the client &
address and other details of the client required to be
mentioned in the form and Agreement.
2. Signatures are required on all pages of the agreement.
3. All the details (Name & address of the client) must be filled.
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4. Name, Address & signature of the witness are compulsory.

(Please note that 1 witness is required to sign on behalf of the
client)
5. Please note that if the signature on the form & the proof
provided differs, the form will be liable for rejection. In such
cases the client has to get his signatures verified by the banker.
6. Nominee details must be supported by 2 witnesses (Name,
Address & signature).
7. Minor accounts, HUF accounts, Corporate accounts, and
Accounts having 3 holders cannot have nominees in a DP
account.
8. Please note that joint accounts cannot be opened in case Minor
accounts and HUF accounts.
9. In case of any corrections on the application form & agreement
holders have to counter sign at place of the correction.

TYPES OF DEMAT ACCOUNT

1. Individual 2. Proprietorship 3. HUF 4. Partnership firm 5. Trust 6. NRI
7. Corporate body
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ACCOUNT OPENING
REQUIREMENTS

(1)PAN CARD MANDOTRY

(2) PROOF OF IDENTITY

(3) PROOF OF ADDRESS (PROVIDED THE ENTIRE ADDRESS WRITTEN ON THE

FORM MATCHES WITH THE PROOF)

FOR INDIVIDUAL
2. Identity proof of the client(PAN card mandatory) valid
additional identity proofs are :(voter ID/Driving
license/Passport /Banker’s verification letter).
3. Address proof of the client (Voter ID /Driving
license/Passport/Ration Card/Sale-Purchase Agreement/Bank
Passbook/Latest Telephone bill/latest Electricity bill/latest Bank
statement/Banker’s varification letter/Insurance policy)
4. Bank proof with account no. ,Branch name and Client name
clearly mentioned on the proof submitted .Vallid Bank proofs
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are latest Transection Statement issued by the Bank or copy of

Bank passbook or Banker’s varification.
5. DP Proof(Valid DP proofs are Welcome Letter-Client Master
list /Latest DP statement)
6. Signed photograph of the Client is required.
7. Documentary evidence of finencial details provided in account
opening form(copy IT Returns,Networth certificat etc.)

FOR H.U.F ACCOUNT OPENING REQUIREMENTS :-

1. Signed Photograph of the Karta is required.
2. Proof of Identity of the Karta
3. Pan card of HUF
4. Proof of Address
5. Photocopy of cheque leaf of bank account number mentioned
on the form to verify the Bank MICR No.
6. HUF Stamp is required wherever the client signs on the
agreement.
7. Letter from the Karta operating the Demat account with the
two witnesses of coparceners.
8. No joint names & nominees allowed for HUF accounts.
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FOR MINOR ACCOUNT OPENING REQUIREMENTS :-

The account opened in the name of the minor cannot have

second and third holders. Further there can be no nominee for
minor account. The Guardian has to sign on behalf of the Minor.
1. Birth Certificate of the Minor.
2. Guardian’s Proof of Address.
3. Guardian’s Proof of Identity.
4. Photograph of the Minor & Guardian.
5. Photocopy of cheque leaf

FOR N.R.I. (NON RESIDENT INDIAN) CLIENT :-

1. Latest photograph signed by the client.

2. Photocopy of Valid Passport (Page containing the date of expiry
also to be attached)
3. Proof of Local Address
4. Proof of Foreign Address
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5. Photocopy of cheque leaf of bank account number (NRE or

NRO) mentioned on the form to verify the Bank MICR No.

FOR PARTNERSHIP FIRM :-

The account cannot be opened in the name of a partnership firm.

It has to be opened in the name of the partners, as an individual
account.
1. Certified true copy of partenership Deed.
2. Details of all Parteners (Includes address proof and identity
proof ). All supporting documents for parteners required as per
individual requirement.
3. PAN Proof of the partenership firm.
4. Bank proof with account no.,Branch name and partenership
firm name clearly mentioned on the proof submitted.Vallid
Bank proofs are latest transection statement issued by bank or
copy of bank passbook or Banker’s varification.
5. Partenership firm stamp is required to be affixed wherever the
partners signs on the agreement /KYC.
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6. Photocopy of cheque leaf of bank account no. mentioned on

the form to varify the Bank’s MICR no.
7. Documentary evidence of the finencial details provided in
account opening form.
FOR TRUST
1. Certified true copy of the Trust Deed.
2. Details of all trustees( including address proof and identity
proof).All supporting documents for Trustees are as per
individual requirement.
3. Pan number of the Trust.
4. DP Accountcan be opened in the name of the Trust if it is a
Registered Trust only.For unregistered trust account should be
open in the name of trustees only.
5. Photocopy of cheque leaf of bank account no. mentioned in the
form to varify the bank MICR no.
6. Documentary evidence of the finencial details provided in
account opening form.
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RTGS &NEFT
 Registration and activation of payout of funds through RTGS
/NEFT is subject to receipt of copy of cancelled cheque from
client.
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.1. What is RTGS System?

 Ans The acronym "RTGS" stands for Real Time Gross
Settlement. RTGS system is a funds transfer mechanism where
transfer of money takes place from one bank to another on a
"real time" and on "gross" basis. This is the fastest possible
money transfer system through the banking channel.
Settlement in "real time" means payment transaction is not
subjected to any waiting period. The transactions are settled as
soon as they are processed. "Gross settlement" means the
transaction is settled on one to one basis without bunching
with any other transaction. Considering that money transfer
takes place in the books of the Reserve Bank of India, the
payment is taken as final and irrevocable.

 Q.2. How RTGS is different from

National Electronics Funds Transfer
System (NEFT)?
Ans NEFT is also an electronic fund transfer system that operate on a
deferred net settlement (DNS) basis which settles transactions in
batches. In DNS, the settlement takes place at a particular point of
time. All transactions are held up till that time. For example, NEFT
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settlement takes place 6 times a day during the week days (9.30 am,
10.30 am, 12.00 noon. 1.00 pm, 3.00 pm and 4.00 pm) and 3 times
during Saturdays (9.30 am, 10.30 am and 12.00 noon). Any
transaction initiated after a designated settlement time would have
to wait till the next designated settlement time. Contrary to this, in
RTGS, transactions are processed continuously throughout the RTGS
business hours (9.00 am to 4.30 pm on week days and 9.00am to
12.00 noon on Saturday).

CLIENT RELATIONSHIP MANAGEMENT

SYSTEM
When client opens a Demat a/c at Angel broking and as soon as
the company provides client code to customer within 48 hours of
providing clients code there is a certain CRM process which is as
follows:-
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FORMAT OF HAPPINESS SERVEY IS AS FOLLOWS

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OBJECTIVES OF THE STUDY :-

The objective of my Project is to gain knowledge about how an
organization works and in particular setup of a stock broking house.

PRIMARY OBJECTIVES OF THE PROJECT ARE :-

1. To learn about company routine working

2. To learn the work of Back office and CRMS and it,s role in a
share broking firm.

SECONDARY OBJECTIVE :-

1. To study the working of “ANGEL BROKING” in present

competitive senerio.
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