A Project Report on

DIVIDEND DECISION ANALYSIS

In partial fulfillment of the requirements for the award of the degree in

MASTER OF BUSINESS ADMINISTRATION

Submitted By
…………………………..

Hall Ticket No: ……………………….

Under the Guidance of

Mr. ………………………

ASSOCIATE PROFESSOR

…………………………………………….
(Affiliated to Osmania University)

………………………….,

……………………………..

…………

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 ABSTRACT
DIVIDEND POLICY has been an issue of interest in financial literature since joint stock
companies into existence. Dividends are commonly defined as the distribution of earnings
in real assets among the shareholders of the firm in proportion to their ownership. Dividend
policy connotes to the

payout policy ,which managers pursue in deciding the size and pattern of cash distribution
to shareholders overtime. Managements primary goal is shareholders wealth maximization,
which translates into maximizing the value of the company as measures by the price of the
company’s common stock .This goal can be achieved by giving the shareholders a “fair”
payment on their investments. However, the impact of firms Dividend policy on
shareholders wealth is still debatable issue.

Dividend policy is one of the most complex aspects in finance .Three decades ago , Black
(1976) in his study on Dividend wrote , “The Harder We Look at The Dividend picture the
more it seems like a puzzle , with pieces that just don’t fit together “. Why shareholders like
Dividends and Why the reward managers who regular increasing Dividends is still
unanswered.

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 INDEX

CHAPTER PAGE
NUMBERS. NAME OF THE CONTENTS NUMBERS.

1 INTRODUCTION 5

  Need and scope of the study 6

  Objectives 7

  Research Methodology 9

Limitations 10

2 REVIEW OF LITERATURE `11-29

INDUSTRY PROFILE &
3 COMPANY PROFILE 31-60

4 DATA ANALYSIS AND INTERPRETATION 61-93

5 FINDINGS 94-95

6 SUGGESTIONS& CONCLUSION 96-100

BIBLIOGRAPHY 101

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 CHAPTER 1

INTRODUCTION

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DIVIDEND DECISION ANALYSIS

1.1 INTRODUCTION:

Commercial management is troubled with the floating of funds diminishing the cost of
capital and allotting the funds in long term investment which involve Capital budgeting
decision. The next important decision is deciding how much profit to retain and how much
to distribute as dividend i.e. dividend decision. The dividend is planned and declared by the
Board of Directors. Dividend policy refers to the proportion of earning distributed as
dividend and the rest kept for further investment i.e. retained earnings. Dividend policy is a
strategy used by a company to determine the amount and timing of dividend payments. The
dividend policy framed by an organization is one of the crucial issues in corporate finance
since it may have an impact on the firm’s value and shareholder wealth. From the lookout
of financial management, the important objective is to determine the dividend policy that
will maximize the market price of the shares of the firm. Dividend policy remains one of
the most dubious problems in corporate finance. Financial economists have promised in
designing and investigate corporate dividend policy. Dividend policy is of two types one is
managed second residual. In residual dividend policy, dividend is paid cash left after the
firm makes attractive investments using net present value basis. The manager must apply
managed dividend policy if investors are satisfied and it reflects in share price. The best
dividend policy is the one which guide to maximize of shareholder wealth and increase the
company’s stock price.

A dividend is the smallest return to the investors in order to compensate for the money
invested and the risk taken by investing in the organization. An association pays dividend to
reward existing investors and to encourage potential investors to buy new issues of shares
at higher prices. A dividend policy of a corporation may range from a decision regarding
dividend action in a complex formal statement approved by the board of directors and
reviewed on a regular basis

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1.2 NEEEDS FOR THE STUDY:

Dividend policy is the set of guidelines a company uses to decide how much of its earnings
it will pay out to shareholders. This study sets out to find out the relationship of dividends
policy and the market value which is very significant and useful for financial managers and
investors in decisions making.

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1.3 OBJECTIVES OF THE STUDY:

The major objective of this study is:

i. To analyze the impact of dividend policy on the market value of Networth Stock
Broking Limited (NSBL)
ii. To find the relation between the shares market price and the dividend policy.
iii. To analyze the factors affecting the market value.

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1.4 SCOPE OF THE STUDY:

The present study enables us to identify the impacts of dividend policy on the market value
of Net worth Stock Broking Limited and to find the comparative between the shares market
price and the dividend policy and to explore the factors affecting the market value. The
scope of this study is confined to 5 years (2016-2020) period.

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1.5RESEACH METHODOLOGY :

Data collection:

In the present project work the data has been collected from readily available sources that is
secondary data like websites, newspaper. The web sites visited NSE India .com ,

BSE India .com, Value research .com

Data analysis:

The present project work has been analysis using time series analysis with graphical
presentation.

The formula applied in the collection as follows: Correlation coefficient.

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1.6 LIMITATIONS OF THE STUDY :

i. This study requires lot of calculations to derive any interpretation regarding

selection of security for investment. But according to the data insufficiency and
inaccuracy it is not possible to analysis all the securities.

Finally we cannot predict the fluctuations because there are so many factors influence the
price movements at the same time

1.7 DEFINATION OF TERMS :

Dividend is a distribution of a portion of a company's earnings, decided by the board of

directors, to a class of its shareholders. Dividends can be issued as cash payments, as shares
of stock, or other property.

Stock- A type of security that signifies ownership in a corporation and represents a claim
on part of the corporation's assets and earnings.

Shareholders- An individual, group, or organization that owns one or more shares in a

company, and in whose name the share certificate is issued.

Stock market- The market in which shares of publicly held companies are issued and
traded either through exchanges or over-the-counter markets.

Market value-(1)the price at which a security is trading and could presumably be

purchased or sold.(2)What investors believe a firm is worth ;calculated by multiplying the
number of shares outstanding by the current market price of a firm's shares.

Share- A unit of ownership interest in a corporation or financial asset.

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 CHAPTER 2

REVIEW OF LITERATURE

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2.1 REVIEW OF LITERATURE:

The essence of the residual theory of dividend policy is that the firm will only pay
dividends from residual earnings, that is, from earnings left over after all suitable (positive
NPV) investment opportunities have been financed. Retained earnings are the most
important source for financing for most companies. A residual approach to the dividend
policy, as the first claim on retained earnings will be the financing of the investment
projects. With the residual dividend policy, the primary focus of the firm's management is
indeed on investment, not dividends. Dividend policy becomes irrelevant, it is treated as a
passive rather than an active, decision variables. The view of management in this case is
that the value of firm and the wealth of its shareholders will be maximized by investing the
earnings in the appropriate investment projects, rather than paying them out as dividends to
shareholders. Thus managers will actively seek out, and invest the firm's earnings in, all
acceptable (in terms of risk and return) investment projects, which are expected to increase
the value of the firm. Dividends will only be paid when retained earnings exceed the funds
required to finance the suitable investment projects. Conversely when the total investment
funds required exceed retained earnings, no dividend will be paid.

 Motive for a residual policy :

The motives for a residual policy, or high retentions, dividend policy commonly include
:When the effective rate of tax on dividend income is higher than the tax on capital gains,
some shareholders, because of their personal tax positions, may prefer a high retention/low
payout policy.

Growth Opportunities
According to the perfect capital market theory by Miller and Modigliani (1961), dividend
policy and investment decisions are independent of each other. However, with the
existence of market imperfections, such as taxes and agency costs, the linkage between
dividend and corporate investment is possible.

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The relationship between investment and dividend policies can be seen from two different
angles. First, a cheap source of financing (retain earnings comparing to debt and new equity
issues) is forgone when a company pays dividends. The second point of view is by paying
dividends, available funds for investment would be reduced. In other words, dividends and
investments are competing to get the low cost internal funds (Elston, 1996).

The investment size is a function of the company’s growth opportunities because the firm
has to rely on external funds. By increasing the amount of available slacks, the
underinvestment problem, which is probably rising with the growth opportunities, can be
controlled. Thus, a firm which is expecting a growth should reduce its dividend payment in
order to gain more financial slacks. Consequently, the probability of underinvestment
would be reduced (Deshmukh, 2005).

As espoused by Milgrom and Robert (1992, p 507) in slow growth industries dividend
payments are higher. On the other hand, those firms with profitable growth opportunities
have limited free cash flows and pay lower dividend in order to decrease their dependence
on external financing.

In other words, high growth firms need funds to finance in investment opportunities. As a
result, they tend to pay no or low dividends. In contrast, firms with low investment
opportunities would probably pay more dividends. This reasoning is consistent with the
free cash flow hypothesis (Gul, 1999). Free cash flow hypothesis, the low growth firms
want to limit their manager’s activity by paying dividends (Jensen, 1986; Lang &
Litzenberger, 1989)

The negative relationship between investment opportunities and dividend payments

supports the pecking order theory of Myers and Majluf (1984).

As proposed by Myers and Majluf, firms with high growth opportunities have t pay
low dividend payouts.

The residual theory implies that dividends should be paid after all investment opportunities
have been financed. Based on the residual theory, a negative relationship between
dividends and external financing would be expected (Alli, et al., 1993). According to
Barclay (1995), investment opportunity is a significant factor of corporate dividend

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decisions. In addition, Fama and French (2002) also asserted that dividend payments in a
firm are influenced by firm’s growth opportunities.

Moreover, based on the maturity hypothesis, when a firm becomes more mature, its growth
and investment opportunity would shrink. In other words, when a company is faced with a
decline in growth opportunities, it then starts to increase its dividends. Declining growth
opportunities will create more available cash flow; consequently, dividends will increase.
The most important result for a mature company is its systematic risk is lower.
Furthermore, because of a decline in investment opportunities and a decrease in risk, the
capital expenditure would also be reduced. They concluded that dividend increases are a
sign of the company’s maturity (Grullon, Michaely, & Swaminathan, 2002).

The increase in dividends conveys two types of information. A decrease in dividends

conveys good news while the bad news is that there is a decline in profitability.

Relevance and Irrelevance Theories of Dividend :

Dividend is that portion of net profits which is distributed among the shareholders. The
dividend decision of the firm is of crucial importance for the finance manager since it
determines the amount to be distributed among shareholders and the amount of profit to be
retained in the business.

Retained earnings are very important for the growth of the firm. Shareholders may also
expect the company to pay more dividends. So both the growth of company and higher
dividend distribution are in conflict.

So the dividend decision has to be taken in the light of wealth maximization objective. This
requires a very good balance between dividends and retention of earnings.

A financial manager may treat the dividend decision in the following two ways:

i. As a long term financing decision: When dividend is treated as a source of

finance, the firm will pay dividend only when it does not have profitable
investment opportunities. But the firm can also pay dividends and raise an equal
amount by the issue of shares. But this does not make any sense.

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 ii. As a wealth maximization decision: Payment of current dividend has a positive
impact on the share price. So to maximize the price per share, the firm must pay
more and more dividends.

Dividend and Valuation:

There are conflicting opinions as far as the impact of dividend decision on the value of the
firm. According to one school of thought, dividends are relevant to the valuation of the
firm. Others opine that dividends does not affect the value of the firm and market price per
share of the company.

Relevant Theory

If the choice of the dividend policy affects the value of a firm, it is considered as relevant.
In that case a change in the dividend payout ratio will be followed by a change in the
market value of the firm. If the dividend is relevant, there must be an optimum payout ratio.
Optimum payout ratio is that ratio which gives highest market value per share.

1. Walter’s Model (Relevant Theory)

Prof. James E Walter argues that the choice of dividend payout ratio almost always affects
the value of the firm. Prof. J. E. Walter has very scholarly studied the significance of the
relationship between internal rate of return (R) and cost of capital (K) in determining
optimum dividend policy which maximizes the wealth of shareholders.

Walter’s model is based on the following assumptions:

i. The firm finances its entire investments by means of retained earnings only.
ii. Internal rate of return (R) and cost of capital (K) of the firm remains constant.
iii. The firms’ earnings are either distributed as dividends or reinvested internally.
iv. The earnings and dividends of the firm will never change.
v. The firm has a very long or infinite life.

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Walter’s formula to determine the price per share is as follows:
P = market price per share.

D = dividend per share.

E = earnings per share.

R = internal rate of return.

K = cost of capital.

According to the theory, the optimum dividend policy depends on the relationship between
the firm’s internal rate of return and cost of capital. If R>K, the firm should retain the entire
earnings, whereas it should distribute the earnings to the shareholders in case the R<K. The
rationale of R>K is that the firm is able to produce more return than the shareholders from
the retained earnings. Walter’s view on optimum dividend payout ratio can be summarized
as below:

i. Growth Firms (R>K):- The firms have R>K may be referred to as growth firms.
The growth firms are assumed to have ample profitable investment opportunities.
These firms naturally can earn a return which is more than what shareholders
could earn on their own. So optimum payout ratio for growth firm is 0%
ii. Normal Firms (R=K):- If R is equal to K, the firm is known as normal firm.
These firms earn a rate of return which is equal to that of shareholders. In this
case dividend policy will not have any influence on the price per share.So there is
nothing like optimum payout ratio for a normal firm. All the payout ratios are
optimum.

iii. Declining Firm (R<K):- If the company earns a return which is less than

what shareholders can earn on their investments, it is known as declining firm.
Here it will not make any sense to retain the earnings. So entire earnings should
be distributed to the shareholders to maximize price per share. Optimum payout
ratio for a declining firm is 100%. So according to Walter, the optimum payout
ratio is either 0% (when R>K) or 100% (when R<K).

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 2. Gordon’s Model :

Another theory, which contends that dividends are relevant, is the Gordon’s model.

This model which opines that dividend policy of a firm affects its value is based on
the following assumptions:

i. The firm is an all equity firm (no debt).

ii. There is no outside financing and all investments are financed exclusively by
retained earnings.
iii. Internal rate of return (R) of the firm remains constant.
iv. Cost of capital (K) of the firm also remains same regardless of the change in the
risk complexion of the firm.
v. The firm derives its earnings in perpetuity.
vi. The retention ratio (b) once decided upon is constant. Thus the growth rate (g) is
also constant (g=br)
vii. K>g.
viii. A corporate tax does not exist.

Gordon used the following formula to find out price per share

P = price per share

K = cost of capital

E1 = earnings per share

b = retention ratio

(1-b) = payout ratio

g = br growth rate (r = internal rate of return)

According to Gordon, when R>K the price per share increases as the dividend payout ratio
decreases. When R<K the price per share increases as the dividend payout ratio increases.

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When R=K the price per share remains unchanged in response to the change in the payout
ratio. Thus Gordon’s view on the optimum dividend payout ratio can be summarized
as below:

i. The optimum payout ratio for a growth firm (R>K) is zero.

ii. There no optimum ratio for a normal firm (R=K)
iii. Optimum payout ratio for a declining firm R<K is 100%.
iv. Thus the Gordon’s Model’s is conclusions about dividend policy are similar to
that of Walter. This similarity is due to the similarities of assumptions of both the
models.

Bird in Hand Argument

(Dividends and Uncertainty)

Gordon revised this basic model later to consider risk and uncertainty. Gordon’s model, like
Walter’s model, contends that dividend policy is relevant. According to Walter, dividend
policy will not affect the price of the share when R = K. But Gordon goes one step ahead
and argues that dividend policy affects the value of shares even when R=K.

The crux of Gordon’s argument is based on the following two assumptions.

i. Investors are risk averse

ii. They put a premium on a certain return and discount (penalize) uncertain
return

The investors are rational. Accordingly they want to avoid risk. The term risk refers to the
possibility of not getting the return on investment. The payment of dividends now
completely removes any chance of risk. But if the firm retains the earnings the investors
can expect to get a dividend in the future. But the future dividend is uncertain both with
respect to the amount as well as the timing. The rational investors therefore prefer current
dividend to future dividend. Retained earnings are considered as risky by the investors.

In case earnings are retained, therefore the price per share would be adversely affected.
This behavior of investor is described as “Bird in Hand Argument”.

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A bird in hand is worth two in bush. What is available today is more important than what
may be available in the future. So the rational investors are willing to pay a higher price for
shares on which more current dividends are paid. Therefore the discount rate (K) increases
with retention rate.

3. Modigliani-Miller Model(Irrelevance theory)

According to MM, the dividend policy of a firm is irrelevant, as it does not affect the
wealth of shareholders. The model which is based on certain assumptions sidelined the
importance of the dividend policy and its effect thereof on the share price of the firm.
According to the theory the value of a firm depends solely on its earnings power resulting
from the investment policy and not influenced by the manner in which its earnings are split
between dividends and retained earnings.

Modigliani-Miller Model(Irrelevance theory)is based on the assumption

i. Capital markets are perfect: Investors are rational information is freely

available, transaction cost are nil, securities are divisible and no investor can
influence the market price of the share.
ii. There are no taxes: No difference between tax rates on dividends and capital
gains.
iii. The firm has a fixed investment policy which will not change. So if the
retained earnings are reinvested, there will not be any change in the risk of
the firm. So K remains same.
iv. Floatation cost does not exist.
v.

The substance of MM arguments may be stated as below:

If the company retains the earnings instead of giving it out as dividends, the shareholders
enjoy capital appreciation, which is equal to the earnings, retained. If the company
distributes the earnings by the way of dividends instead of retention, the shareholders enjoy
the dividend, which is equal to the amount by which his capital would have been

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appreciated had the company chosen to retain the earnings. Hence, the division of earning
between dividends and retained earnings is irrelevant from the point of view of
shareholders.

Dividend Policy Theories

This section analyzes theories about dividend policy including dividend irrelevance
hypothesis and relevancy theories such as bird in hand, signaling, tax preference and
agency costs.

Researchers identified three contradictory theories about dividend decisions in firms. Some
state that raising the dividend payouts influence and increase the firm’s value (this is called
the bird in hand theory). On the other hand, some others argue that high dividend payments
have a reverse effect on the value of the firm (tax preference theory). The third approach is
known as dividend irrelevance theory. All these theories will be discussed in the following
sections.

Dividend Irrelevance Theory

In the 1960’s, with a new wave of finance, Miller and Modigliani explain the dividend
payment is irrelevant to the value of the company based on certain conditions of perfect
capital market and rational behavior (Miller & Modigliani, 1961). Based on the M&M’s
model, in a perfect market the share price of a firm and shareholder’s wealth is not affected
by the dividend policy since they believe the value of the firm is determined by its
investment decisions. In other words, the value of firms is independent of how they set
their dividend policy.

Assumptions of a perfect capital market that Miller and Modigliani based their theory on
can be summarized as follows:

1. No tax differences between dividends and capital gains.

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 2. No transaction costs.

3. Information is equally available to everyone at no cost. (symmetrical information)

4. Conflict between managers and shareholders do not exist. (No agency cost)

5. All investors are price takers and do not have power to control the security price.

Miller and Modigliani’s (M&M) model (1961) assumed the investment of a firm is fixed
because all positive net present value projects are financed irrespective of the firm’s
dividend strategy, accordingly dividends are firm’s residual free cash flow. Conventional
wisdom recommends that dividend payments are critical to the firm’s value and an
appropriate dividend policy is important to shareholders because it will affect their wealth
as well as the share price. Usually i n v e s t o r faced with inaccurate information regarding
a firm’s performance consequently they use dividend payments as a signal (Frankfurter &
Wood, 1997).

To summarize, in the perfect capital market, the only determinant of firm’s value is the
future cash flow from investment decisions.

Market imperfections such as asymmetric information, agency costs, transaction costs and
taxes should be considered in dividend relevancy (Lease, et al., 2000).

Over years of researches, four main theories of dividends relevancy have been offered: The
bird-in-hand theory, signaling theory, tax preference theory and agency cost theory.

Bird in Hand Theory

The bird in hand theory was developed by Myron Goldon (1959) and John Lintner (1962)
and argues that there is a relationship between dividend payments and a firm’s value. Since
investors value dividends less risky compared to capital gains, firms have to set a higher
dividend payout ratio to maximize the share price. In other words, high dividends increase
the stock price (Robinson, 2006).

In view of the fact that the risk of a firm is determined by the risk of its cash flows,
which is not changed by dividend policy; therefore, the bird in hand explanation may not

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hold true. In other words, the risk of a firm cannot be reduced by an increase in the
dividend payments (Bhattacharya, 1979). Generally, the bird in hand explanation for
dividend relevance is rejected by most of the financial economics literatures.

Signaling Hypothesis

The second explanation is the signaling model which argues the existence of asymmetric
information between managers and shareholders. M&M’s model assumed that in a firm,
information is available for insiders and outsiders equally; but managers may have
information relevant to the value of the firm which outside investors does not have
(Robinson, 2006). This information gap explains the way managers use dividends
announcements as a signal which conveys valuable information about future performance
of the firm to investors.

Based on the signaling hypothesis, shareholders may interpret an increase in dividend

payment as a signal of future profitability; hence in a positive reaction, the share price will
rise. In the same way, a decrease in dividend payouts may be considered as a bad news
about future earnings; therefore, the share price may react unfavorably (Al-Malkawi, 2008).

Signaling perspective of dividend policy is supported and cited by many researchers such
as Bhattacharya (1979) and Miller and Rock (1985).

Tax-Effect Hypothesis

The M&M’s model assumes that there is no tax difference between dividends and capital
gains. However, in the real word of finance, taxes may have influence on dividend
payments and more importantly, on the value of a firm. The tax preference explanation
suggests a low level of dividend payouts is preferable in order to maximize value for
shareholders. This argument is based on that dividends are taxed immediately and also at
a higher rate compared to capital gains, which are postponed until the stock is sold.

The advantages of tax for capital gains motivate investors to prefer firms that retain
earnings rather than pay dividends. As a result, a low level of dividends will raise the stock
price.

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In most of the countries like US, UK and Jordan, dividends and capital gains are taxed
differently; usually dividends are taxed at a higher rate. Hence, investors in these countries
prefer higher pre- tax return to keep stocks with higher dividend yields (Al-Malkawi,
2008).

Agency Costs and Free Cash Flow Hypothesis

Based on the M&M’s theory, there is no conflict between managers and shareholders.
However, in practice this assumption may not hold true since managers’ interest is not
exactly the same as investors’. Therefore, the shareholders may incur agency cost, resulting
from the potential conflict between manager and shareholder.

The agency costs theory suggests that increasing dividends is one way of reducing the
agency costs. By paying higher dividends the level of internal cash will reduce and firms
have to search for more external financing. The agency explanation for dividends has been
supported by previous empirical studies (for example (Rozeff, 1982)). In addition,
Easterbrook (1984) stated that dividends can be used to reduce free cash flow available
for managers; and by paying dividends, managers may need to raise funds from external
sources. In this way shareholders can monitor managers at a lower cost and prevent
managers from acting in self interest.

Factors Influencing Dividend Decisions

This part discusses about different factors that may influence dividend payments as well as
the relevant proxies for each variable. These factors were found in previous studies, as
mentioned earlier in this chapter.

Agency Costs

As discussed in the previous section, one of the basic assumptions of M&M’s perfect
capital market is that there is no disagreement between managers and shareholders;
however, in the real world, as managers are the shareholders’ agents, they may have
interests inconsistent to those of the shareholders. Analyzing such conflicts became an
important part of financial literature.

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By paying cash to shareholders as dividends, these resources under the managers’ control
would be reduced accordingly; hence, managers may lose their power (Easterbrook, 1984;
Rozeff, 1982). In addition, by distributing cash to shareholders, the internal fund available
to the managers is reduced; as a result, the managers may be forced to seek external
financing.

As Easterbrook (1984) argued, there are two forms of agency costs. The first one is the cost
of monitoring managers, which is borne by shareholders. The second form of agency cost is
the risk aversion on the part of the managers.

A risk adverse manager does not like to take risks and prefers to choose projects that have
lower expected returns than riskier ventures. On the other hand, the shareholders have a
reverse preference and would want managers act as a risk preference and take high risk
ventures since shareholders believe a riskier venture would enrich them (Easterbrook,
1984).

According to Jensen and Meckling (1976), another problem which might be affected by
dividend payments is the conflict between shareholders and bondholders. The shareholders
are agents of the bondholders, therefore a high level of dividend payments to the
shareholders may be considered as confiscating the bondholders’ wealth; as a result, the
bondholders may prefer to limit dividend payments.

Managers are required to go to the capital market in order to raise the funds while they pay
dividends. In this way, the financial analysts and the other investment professionals are also
able to check the managers’ behavior. Hence, the cost of monitoring managers would be
lower for shareholders. It is argued that paying dividends enhance scrutiny of managers by
insiders. On the other hand, it might oblige managers to make undesirable decisions such as
increasing leverage which is a risky action (Easterbrook, 1984). A rational shareholder
however, would prefer dividends in order to minimize the agency costs of external equity
(Rozeff, 1982).

When a firm has growth opportunities, the agency problem become more serious since
there is free cash flow available to the managers, but the high level of dividends
would reduce available funds. Consequently, the shareholder-manager conflict would be

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minimized. Thus, it is important to motivate the managers to return free cash rather than
using it inefficiently (Jensen, 1986).

According to Jensen (1986), there is another aspect of paying dividends based on agency
problems. When a company has free cash flow, which is excess of funds needed for
positive net present value projects, then the managers would have the power and
opportunity to use these funds to benefit not only shareholders but also themselves. He
contended that when a firm has surplus cash, the managers may accept projects with
negative NPV. Thus, by increasing dividend payments, free cash flow under manager’s
control will be alleviate and prevent them from investing in less profitable projects. Having
a lower level of free cash flow will result in lower agency costs.

Higher dividend payouts help to decrease the funds available for managers, and then they
have to find more financial resources. In addition, the shareholders have to bear the risk of
having a highly leveraged firm. In other words, the shareholders should have the incentive
to trade off between the advantages and the disadvantages of paying more dividends.

There are different measures which have been used in prior studies to proxy agency cost
between managers and stockholders. The larger the number of shareholders, the more
dispersed the ownership; hence, monitoring the managers becomes more costly, as argued
by Rozeff (1982).

A dispersion of ownership would cause an increase in the agency costs. In firms whose
owners are more dispersed, a higher level of dividend payments is required to control
agency problems, because when ownership of a firm is widely dispersed, the level of
shareholder control would also diminish.

In this way, they can mitigate the agency problem and reduce the available cash to the
managers in order to protect themselves from being seized (Alli, Khan, & Ramirez, 1993).

The percentage of shares held by the insiders is widely used as a second proxy to measure
agency cost in literatures such as (Al-Malkawi, 2008; Alli, et al., 1993; Deshmukh, 2005;
Holder, Langrehr, & Hexter, 1998; Jensen, Solberg, & Zorn, 1992). It is argued that when
insiders increase their ownership in a firm, the agency problem is reduced because the

25
interest of managers and shareholders can be aligned in this way (Jensen & Meckling,
1976).

Hence the higher the insider ownership, the lower the agency costs. Therefore, other things
being equal, the dividend payout should be inversely related to fraction of equity owned by
insiders (managers, directors) (Deshmukh, 2005).

Another proxy to measure agency cost is the amount of free cash flow of a firm- a greater
retention of free cash flow in a firm predicts a potential agency problem (Henry, 2006).

It is expected that in emerging markets like Malaysia, the agency problem is a more serious
topic for firms due to the nature of their ownership structure and legal issues regarding the
investors in these markets. Lack of evidence to support or reject this declares in emerging
markets especially in Malaysia is one of the motivations to do this research.

Size

Another factor may influence a firm’s decisions on whether to pay dividends or not, is the
size of the firm. Studies showed that about 87% of large companies paid dividends
compared to 49% of small firms (Mozes & Rapaccioli, 1995).

A research done by Lloyd, Jahera and Page (1985), showed that the size of firms played an
important role in their dividend policy. In other words, the larger the firm, the easier it can
gain access to the capital market because the large firms are more mature compared to the
small companies. Therefore, the dependency to internal funds would reduce and firms can
make higher dividend payouts (Lloyd, Jahera, & Page, 1985).

Studies indicate that large firms can easily increase funds at a lower cost compared to the
small companies. In this way, the dependency to internal funding would be reduced and
they would manage to pay a higher dividend to shareholders.

Lots of studies have recognized size of firms as an important determinant of dividend

payments. Based on these researches, it is expected that the relationship between dividend
payout and size of a company is positive (Barclay, Smith, & Watts, 1995; Holder, et al.,
1998; Lloyd, et al., 1985; Redding, 1997).

In contrast, Mahadwartha (2002) concluded that in Indonesia, the dividend payout is

inversely related to firm size. In other words, the larger the firms in Indonesia, the less they

26
pay dividend to their shareholders. Mahadwartha reasoned that in large firms, management
may take advantage of the free cash flow for their interest while shareholders have less
power to monitor the managers.

As Gugler (1997) contended, in the United States most of the large companies pay
dividends to control managers from self interest investments.

Since Small firms have to reinvest to grow; consequently, funds available for dividend
payouts would be reduced (Ingram & Lee, 1997).

Based on literatures, there are different measures for a company’s size, such as sales, assets,
employment and capitalization. Here in this study, market capitalization is used as a proxy
for the firm’s size. This proxy has been used in other researches see for example
(Deshmukh, 2005; Isa, 2000; Mozes & Rapaccioli, 1995).

Profitability

Bearing in mind that a company pays dividends from its annual profits, therefore only firms
with a profit have the ability to pay dividends and those experiencing losses are unlikely to
pay dividends. Thus considering the level of profitability as one factor in determining
dividend payments is logical.

Myers and Majluf (1984) asserted that profitable firms increased their demand for debt
since firms use internal funds to invest. They explained this idea through the pecking order
hypothesis. According to the pecking order theory, firms prefer to use their internal
resources to invest and whenever external financing is needed; they prefer to issue debt
rather than equity to reduce the information asymmetry and transactions costs (Myers,
1984; Myers & Majluf, 1984).

This theory can also provide explanation for a firm’s dividend payments. The discussions
of the pecking order theory focused on how dividend payouts vary with profitability.

While managers issue risky securities by private information, the existence of the
asymmetric information helps the investors to discount new issued and existing securities.
Managers usually prefer to use retain earnings to finance a project because no asymmetric

27
information is involved. Since discount prices are expected, managers are hesitant to issue
risky debt and equity.

Firms try to finance investment first with retain earnings, then with safe debt, and finally
with equity, to minimize the asymmetric information and other financing costs (Fama &
French, 2002).

Since outside funds are costly to gain, for companies with less profitable assets dividends
are less attractive. As a result, more profitable firms pay more dividends to control
investment opportunities.

As concluded by Lintner (1956), a firm’s profit is one of the most critical factors that affect
dividend payouts. Moreover, the relation between profitability and dividend payout
expected to be positive as concluded by other studies.(Fama & French, 2002; Han, Lee, &
Suk, 1999; Jensen, et al., 1992). Additionally, some researches about dividend policy in
emerging markets support that earning is the key determinant of dividend distribution. For
example, Adaoglu (2000) noted that in Turkey because of regulation, companies had to
distribute half of their profits as cash dividends to investors until 1994. (Also see Pandey,
2001)

Based on these discussions, profitability is chosen in this study as a determinant of dividend

payments and to measure profitability, after tax earnings per share is used. It is expected
that dividend and profitability are positively related.

Financial Leverage

In order to have a comprehensive examination of the determinants of dividend policy

among Malaysian public listed companies, the relationship between dividend payments and
capital structure of the companies also have to take into consideration. Debt (liabilities) and
equity make up the financial structure of a firm and the level that a firm relies on debt is
referred “financial leverage”. The use of debt can lever up shareholders return on equity.
Leverage involves risk. Once a company acquires debt, it is contractually obligated to pay
the interest payment and the principal amount. The commitment of paying these fixed fees
consist risk. In other words, if a company cannot meet its obligations, this may cause its
liquidation (Al-Malkawi, 2008).

28
As Rozeff (1982) pointed out, leverage creates fixed charges and dividends are proxy for
these charges. His research showed that companies with a higher level of debt are likely to
pay low dividend payments in order to reduce transaction costs (Rozeff, 1982). In addition,
a study done by DeAngelo and Masulis (1980) showed that in tax and non-equilibrium
condition, dividend payments and leverage are relevant.

Agrawal and Jayaraman (1994) examined that all equity firms pay higher dividends than
leveraged firms since they want to reduce the agency problems of free cash flows. Their
findings showed the inverse relationship between dividend payouts and financial leverage.

By contrast, Mahadwartha and Jogiyanto (2002) found that leverage affects dividend
positively and significantly. They argued that a higher level of debt results in a higher level
of risk (bankruptcy cost). Consequently, the shareholders would demand for a higher level
of dividend distribution in order to compensate the high level of risk. Another research
done by Koch and Shenoy (1996) emphasized the simultaneous interdependence between
leverage and dividend payout had affected future cash leverage considerably.

In addition, results of a study done in Japan showed that the debt ratio of high dividend
payers was significantly lower than the low dividend payers (Kato, Loewenstein, & Tsay,
2002). According to all the discussions above, financial leverage has been known as one of
the key factors that influence the dividend payments and according to prior researches, the
relationship between dividend policy and firm’s leverage is expected to be negative.

29
 CHAPTER 3

INDUSTRY PROFILE AND COMPANY PROFILE

30
 3.1 INDUSTRY PROFILE :

Ever since we were founded nearly 160 years ago we have working in the service of
enterprise. We are committed to deliver customer value, building on our strong
heritage of entrepreneurship, international outlook and long-term perspective. SEB
has for long played an active part in the development of societies in which are
operating.

2010-Today - The relationship bank SEB continued focusing on areas of strength

where the bank could take a leading position. As a consequence, SEB decided to sell
its German and Ukraine retail banking businesses. The aim now is to be the leading
Nordic bank for corporations and institutions, and the top universal bank in Sweden
and the Baltic countries.
2006-2009 – Supporting throughout new crisis
As the first decade of the 21st century came to a close, the world faced a financial
crisis. SEB carried out a 15.1 billion kronor rights issue to strengthen its capital base
and support customers throughout the acute crisis, with increased lending.
2000 – International expansion
In 2000 SEB completed the acquisition of BFG Bank in Germany and bought
remaining stakes in its three Baltic banks to own 100 per cent of them at year-end.
More than half the banks employees were now outside of Sweden.

1990-1999 – Crisis, internet and SEB

The Swedish economy became overheated in the 1980s, causing a severe economic
crisis at the beginning of the 1990s. S-E-Banken faced huge losses but survived
without state support. In 1996 S-E-Banken was one of the first banks in the world to
launch a complete internet bank for private clients. The bank changed its trading
name to SEB in 1998.

31
1972 –The merger
Stock holms Enskilda Bank and Skandinaviska Banken merge to become
Skandinaviska Enskilda Banken (S-E-Banken). A key reason for the move is to
better face growing competition from major international banks. Together the two
banks are stronger and more competitive.

1930-1940 – Skandinaviska Banken

Skandinaviska Kreditaktiebolaget incurred heavy losses as a result of the

international recession and the Kreuger crash. The state provided 215 million kronor
in loans to the bank and it took four years to pay the money back. In 1939 the bank
changed its name to Skandinaviska Banken.

1910-1920 – New head office

There is great demand for capital and Skandinaviska Kreditaktiebolaget acquires
several banks to become the largest commercial bank in Sweden. In 1915
Stockholms Enskilda Banken moves its head office to Kungsträdgårdsgatan in
Stockholm.

1864 – Skandinaviska Kreditaktiebolaget founded Danish financier Carl Fredrik

Tietgen, in cooperation with André Oscar Wallenberg, founded Skandinaviska
Kreditaktiebolaget in 1864. The new bank was a competitor to Stockholms Enskilda
Bank.
1856 – Stockholms Enskilda Bank founded André Oscar Wallenberg founded
Stockholms Enskilda Bank in 1856 as Stockholm's first private bank and one of the
first commercial banks in Sweden.
Our heritage - A heritage of entrepreneurship – in the service of enterprise.
Our purpose :
We believe that entrepreneurial minds and innovative companies are key in creating
a better world. We are here to enable them to achieve their aspirations and succeed
through good times and bad.

Our vision : To deliver world-class service to our customers.

32
Our core valuesCustomers first
We put our customers’ needs first, always seeking to understand how to deliver real
value.

Commitment : We are personally dedicated to the success of our customers and are
accountable for our actions.

Simplicity : We strive to simplify what’s complex. We value our customer’s time,

striving to be accessible, straightforward and transparent.

Collaboration : We achieve more because we work together. We share, challenge

and learn from our experiences as a team.

Our role in society :

Banks play an important role in society. By assisting customers with financing,
investments, secure payments and asset management, we support economic
development and international trade and contribute to financial security. By sharing
expert knowledge, we help households, entrepreneurs and companies make well-
grounded decisions so that they can achieve their plans and ambitions. This creates
value for customers encourages customer loyalty, and by extension, long-term
shareholder value.

We support future generations - the core of our community investments

We support future generations. That is what permeates throughout our sponsoring
activities. We enter collaborations that highlight SEB´s role as corporate citizen in
the countries where we are active – and in areas where we have a heritage of strong
commitment.

33
Organization

Our stakeholders

34
We work with our stakeholders in the community to ensure a responsible and
sustainable business, and to increase our positive contributions. We aim for
transparency and intend to engage all stakeholders in close dialogues. Stakeholder
opinions play an important role when we develop our approach to corporate
sustainability. By listening to them we can better understand emerging trends and
material issues, and how to prioritise among them.

Customers

Relationships and trust are the foundation of everything we do. Our customers
entrust not only their money but also their aspirations and their plans for the future.
We want to be their partner in good as well as bad times and have a long-term
perspective ineverything we do. It is our job to listen, to use our knowledge in a
simple way, giving clear advice to our customers on how to realize the dreams and
secure the future.

Employees

An engaging, inclusive and stimulating work environment encourages high quality

performance as well as high employee satisfaction and loyalty. This is in the interest
of both customers and shareholders. To retain our position as the relationship bankin
our part of the world SEB must attract, develop and retain the best people so that we
can provide the best service and experience to our customers. Having the most
committed employees is an explicit goal in SEB's business plan.

Suppliers and partners

SEB purchases goods and services from a variety of local companies and
international groups. We require our suppliers to live up to good social and
environmental standards. We also know that our suppliers expect us to conduct a
sustainable business, and that our long-term perspective is a essential. We work
together across the value chain in order to minimize risks, future opportunities and to
ensure sustainable economic growth.

Investors and shareholders

SEB's overall goal is to create sustainable shareholder value while fulfilling the
expectations of other stakeholders. The key to achieving this goal is a strong focus

35
on financial performance, risk management and internal control. We also focus on
securing future competence, long-term development in customer relations, brand
reputation and long-term credit quality.

Local communities
As a bank, we are an integrated part of society, and we know thatwhat we do has an
impact. Therefore, we want to contribute tobuilding a society we all want to, and
can, be part of. In addition to the role that our business plays, we support local
communities. We share both time and money and work with carefully chosen
partners and people.

Our customers
Rewarding relationships are the cornerstones of our business. Ever since A O
Wallenberg founded SEB in 1856, we have provided financial services to assist our
customers in reaching their financial objectives.

3,000 large corporations and institutions

Our corporate customers in the Nordic region are among the largest in their
respective industries. In Germany they range from large mid-corporates to large
multinationals. Our institutional clients operate both in the Nordic countries and
internationally.

400,000 SME customers

In all, we serve approximately 400,000 small and medium-sized companies in
Sweden and the Baltic countries. Of these some 246,000 are home bank customers.

4,000,000 private customers

We have approximately 4 million private individual customers in Sweden and the
Baltic countries. Of these some 1.3 million are home bank customers. In addition,
SEB has around 27,000 private banking customers in and outside Sweden.

3.1.2 THE NATIONAL STOCK EXCHANGE (NSE)

36
The National Stock Exchange (NSE) is India's leading stock exchange covering
various cities and towns across the country. NSE was set up by leading institutions to
provide a modern, fully automated screen-based trading system with national reach.
The Exchange has brought about unparalleled transparency, speed & efficiency,
safety and market integrity. It has set up facilities that serve as a model for the
securities industry in terms of systems, practices and procedures.NSE has played a
catalytic role in reforming the Indian securities market in terms of microstructure,
market practices and trading volumes. The market today uses state-of-art information
technology to provide an efficient and transparent trading, clearing and settlement
mechanism, and has witnessed several innovations in products & services viz.
demutualisation of stock exchange governance, screen based trading, compression of
settlement cycles, dematerialisation and electronic transfer of securities, securities
lending and borrowing, professionalisation of trading members, fine-tuned risk
management systems, emergence of clearing corporations to assume counterparty
risks, market of debt and derivative instruments and intensive use of information
technology.

History & Milestones

NSE was promoted by leading Financial Institutions at the behest of the Government
of India and was incorporated in November 1992 as a tax-paying company unlike
other stock exchanges in the country.

 2011-2020
 2001-2010

 1991-2000

Mar-2014 Commencement of trading of Nifty Futures on OSE

Feb-2014 NSE Launches NVIX Futures – Futures on India VIX index

Jan-2014 NSE Launches ‘NSE Bond Futures II’

May-2013 NSE launches the first dedicated Debt Platform on the Exchange

Jan-2013 Agreement on Launch of NIFTY Futures in Japan

37
Jan-2013 NSCCL Rated CCR AAA for fifth consecutive year

Sep-2012 NSE launches SME operations

NSE launches financial literacy initiative ' Jagruti' in Mohali, in

Jun-2012
partnership with India Post

May-2012 Futures and Options contracts on FTSE 100

NSE and India Post start Unique Financial Inclusion Initiative

Mar-2012
"Jagruti"

Mar-2012 NSE launches “EMERGE” - SME Platform

NSCCL Rated “CCR AAA” for fourth consecutive year - 28th Dec
Dec-2011
2011

Sep-2011 Launch of derivatives on Nifty PSE and Nifty Infrastructure Indices

Aug-2011 Launch of derivatives on Global Indices

Jul-2011 Commencement of trading in 91 Day GOI Treasury Bill - Futures

Jan-2011 NSE receives "Financial Inclusion" Award

Purpose :Committed to improve the financial well-being of people

Vision :To continue to be a leader, establish global presence, facilitate the financial
wellbeingof people.

Values :

NSE is committed to the following core values:

i. Integrity
ii. Customer focused culture
iii. Trust, respect and care for the individual
iv. Passion for excellence
v. Teamwork

Our Logo:

38
The logo of the NSE symbolizes a single nationwide securities trading facility
ensuring equal and fair access to investors, trading members and issuers all over the
country. The initials of the Exchange viz., N, S and E have been etched on the logo
and are distinctly visible. The logo symbolizes use of state of the art information
technology and satellite connectivity to bring about the change within the securities
industry. The logo symbolizes vibrancy and unleashing of creative energy to
constantly bring about change through innovation.

Products :

i. Verifying your trades

ii. Registering a complaint
iii. Getting NSE Certification

NSE group companies :

i. NSCCL
ii. NSETECH
iii. IISL
iv. DOTEX
v. NSE.IT
vi. NSICL

Our products

Equities :

i. Equities
ii. Indices
iii. Mutual Funds
iv. Exchange Traded Funds

39
 v. Initial Public Offerings
vi. Security Lending and Borrowing Scheme

Derivatives :

i. Equity Derivatives
ii. Currency Derivatives
iii. Interest Rate Futures

Debt :

i. Debt Market
ii. Corporate Bonds

Business Growth :

i. CM
ii. F&O
iii. WDM
iv. RDM

The Organisation :

The National Stock Exchange of India Limited has genesis in the report of the High
Powered Study Group on Establishment of New Stock Exchanges. It recommended
promotion of a National Stock Exchange by financial institutions (FIs) to provide
access to investors from all across the country on an equal footing. Based on the
recommendations, NSE was promoted by leading Financial Institutions at the behest
of the Government of India and was incorporated in November 1992 as a tax-paying
company unlike other stock exchanges in the country

The National Stock Exchange (NSE) operates a nation-wide, electronic market,

offering trading in Capital Market, Derivatives Market and Currency Derivatives
segments including equities, equities based derivatives, Currency futures and
40
options, equity based ETFs, Gold ETF and Retail Government Securities. Today
NSE network stretches to more than 1,500 locations in the country and supports
more than 2, 30,000 terminals.

With more than 10 asset classes in offering, NSE has taken many initiatives to
strengthen the securities industry and provides several new products like Mini Nifty,
Long Dated Options and Mutual Fund Service System. Responding to market needs,
NSE has introduced services like DMA, FIX capabilities, co-location facility and
mobile trading to cater to the evolving need of the market and various categories of
market participants.

NSE has made its global presence felt with cross-listing arrangements, including
license agreements covering benchmark indexes for U.S. and Indian equities with
CME Group and has also signed a Memorandum of Understanding (MOU) with
Singapore Exchange (SGX) to cooperate in the development of a market for India-
linked products and services to be listed on SGX. The two exchanges also will look
into a bilateral securities trading link to enable investors in one country to seamlessly
trade on the other country's exchange.

NSE is committed to operate a market ecosystem which is transparent and at the

same time offers high levels of safety, integrity and corporate governance, providing
ever growing trading & investment opportunities for investors.

Corporate Structure :

NSE is one of the first de-mutualized stock exchanges in the country, where the
ownership and management of the Exchange is completely divorced from the right to
trade on it. Though the impetus for its establishment came from policy makers in the
country, it has been set up as a public limited company, owned by the leading
institutional investors in the country.

From day one, NSE has adopted the form of a demutualized exchange - the
ownership, management and trading is in the hands of three different sets of people.
NSE is owned by a set of leading financial institutions, banks, insurance companies
and other financial intermediaries and is managed by professionals, who do not

41
directly or indirectly trade on the Exchange. This has completely eliminated any
conflict of interest and helped NSE in aggressively pursuing policies and practices
within a public interest framework.

The NSE model however, does not preclude, but in fact accommodates involvement,
support and contribution of trading members in a variety of ways. Its Board
comprises of senior executives from promoter institutions, eminent professionals in
the fields of law, economics, accountancy, finance, taxation, etc, public
representatives, nominees of SEBI and one full time executive of the Exchange.

While the Board deals with broad policy issues, decisions relating to market
operations are delegated by the Board to various committees constituted by it. Such
committees includes representatives from trading members, professionals, the public
and the management.The day-to-day management of the Exchange is delegated to
the Managing Director who is supported by a team of professional staff.

More about Corporate Structure

i. Board of Directors
ii. Mandatory Committees
iii. NSE Advisory Committee

NSE Trading Technology :

National Stock Exchange of India is one of the leading exchanges in the world on
several key parameters. Number of contracts traded relate directly to the
technology and liquidity of the exchange. NSE ranks* in top 3 globally for Stock
Futures and Index Futures and Options. Technology at the exchange remains
backstage to fulfill the demand for capacity, reliability and performance ensuring
the competitive edge of NSE as India’s number one exchange platform.

Core trading system :

42
NSE’s trading system, called National Exchange for Automated Trading (NEAT),
is a state of-the-art client server based application. It has uptime record of over
99% with latency is in single digit millisecond level for all orders entered into the
NEAT system. NSE has been continuously undertaking capacity enhancement
measures so as to effectively meet the requirements of increased users and
associated trading loads. The core trading applications of NSE run on fault
tolerant servers sourced from Stratus Technologies. Earlier generation of trading
system was highly dependent on the growth of microprocessor industry for
improved scalability. This was creating speed breakers in the growth demanded
by Indian market participants. Some time back NSE re-architected the trading
system to achieve unlimited scalability.

The system now has a multi-layer architecture is designed for unlimited

scalability at every layer. Each layer of trading system can be scaled up by adding
more hardware to the layer. The re-architecting of the system has eased out
meeting the ever growing capacity needs of Trading. This application extensively
uses in-memory database technology to provide for performance needs expected
from a Matching system. The matching engine response time can be measured in
single digit millisecond for the thousands of transactions processed by the system
every second.

To complement the matching engine speed, Market Data is generated and

distributed at a very high refresh frequency. Using the Multicasting the market
data access is accessible to all trading members almost simultaneously.

NSE provides its customers a feature packed Trader Work Station (TWS) two
Front-ends, NEAT & NEAT PLUS for all the market segments. NEATPLUS
TWS is a unified frontend for multiple market segments. Apart from distributing
its own front end NSE also publishes the protocol that can be used by
Independent Software Vendors as well as Sell Side firms to develop their own in-
house systems.

DMA, Algorithmic trading and Co-location facility :

43
Direct Market Access and Algorithmic trading was allowed in India in April
2008. DMA opened up faster access to Indian markets for financial institutions
across the world. Now a significant movement is going on all across the world, to
consume the liquidity in a better way, and increase capacities everywhere in the
markets. Better algorithms with mathematically proven strategies that consume
liquidity, and faster systems with very low latency are the need of the day. Since
laws of physics have to be obeyed, member’s systems have to come closer to the
exchange trading systems to meet the requirements of lower latencies and faster
execution. Co-location at exchange premises is the mechanism used by exchanges
to achieve these objectives.

NSE is also the exchange which has been in forefront of implementing Co-
location services and Tick-by-Tick market data product among several other
firsts. High frequency and automated trading had taken off in India with launch of
NSE’s Co-location services in Jan of 2010. The service allows renting rack space
with low latency connectivity to the exchange with the mandatory power supply,
cooling and security requirements of the industry. The facility features include
dual UPS power source and 100% DG capacity, multiple precision air
conditioning units with N+1 redundancy, standard 42 U rack with 6KVA power
and a 1Gbps network port which will provide order and market data connectivity.

Basic IT services namely Help Desk (24X7), Hardware Checks, Incident

Management (Level 1), On-site coordination, Daily reports, Named resource
(SPOC) for the account and Power ON/OFF / Boot on request are also
provided.A significant order flow of the exchange is now passing through the Co-
location facility especially for Algorithmic Trading and Direct Market
Access(DMA). To complement the High Frequency Trading, Tick By Tick
Market Data feed generating broadcast for every transaction is provided by the
exchange. More recently Thomson Reuters’s Elektron data solution was enabled
at the co-location center to deliver high-speed connectivity for the NSE's data.

Compatible with Financial Information Exchange (FIX Protocol), the Industry-

Standard Messaging Protocol, for Equity, Derivatives and Currency market is

44
achieved through NSE’s own connectivity software called as TAP (Trading
Access Point)

Now application service provisioning :

NSE on Web (NOW) - A New Initiative for Members was taken up for providing
a low cost and low time to market deployment option for our members. NOW is a
near zero cost cloud paradigm based trading option. NOW cloud provides
connectivity to NSE’s Equity, Derivatives, Currency Derivatives and Mutual
funds segments and also with other trading venues. The major benefits of using
NOW are almost zero Time to Market, Infrastructure Cost, Maintenance Cost,
and System Audit, Connectivity requirement, Upgrades and versioning
overheads. The entire member community be it the newest member or a veteran
have been using NOW successfully for various needs from basic trading to
business continuity trading.

Risk management :

Risk containment measures at NSE include capital adequacy requirements of

members, monitoring of member performance and track record, stringent margin
requirements, position limits based on capital, online monitoring of member
positions and automatic disablement from trading when limits are breached. The
margins for the member is calculated first for his clients and then grossed across
clients to arrive at the member's margin. The methodology applied is based on the
Value-at-Risk (VaR) Methodology.

The equity segment uses this for the its risk management whereas for derivative
products Standard Portfolio Analysis of Risk (SPAN) ® is used. SPAN is a
highly sophisticated, value-at-risk methodology that calculates performance
bond/margin requirements by analyzing the "what-if" of virtually any market
scenario.

45
The risk management system computes positions and margins on a real time
basis. The risk computation process consists of various stages starting with the
initialization process in terms of receiving masters information, deposits of
members and receiving on-line data loads from the trading system, computing the
open positions and monitoring the violations on a real time basis. The risk
parameters are computed 5 times a day based on the intra-day volatility. Final
Margins are calculated using the end of day risk parameters calculated on end of
day volatility.

NSE introduced Cross Margining in 2008 to enhance liquidity. Cross margining

is available across Cash and F&O segment. The positions of clients in both the
Cash and F&O segments to the extent they offset each other. The cross margin
benefit is calculated in real time taking to account the clients positions across both
segment. The benefit is then grossed across all clients and passed on to the
member.

3.1.3 BOMBAY STOCK EXCHANGE(BSE) :

Established in 1875, BSE (formerly known as Bombay Stock Exchange Ltd.), is

Asia's first & the Fastest Stock Exchange in world with the speed of 6 micro
seconds and one of India's leading exchange groups. Over the past 140 years,
BSE has facilitated the growth of the Indian corporate sector by providing it an
efficient capital-raising platform. Popularly known as BSE, the bourse was
established as "The Native Share & Stock Brokers' Association" in 1875. BSE is
a corporatized and demutualized entity, with a broad shareholder-base which
includes two leading global exchanges, Deutsche Bourse and Singapore
Exchange as strategic partners. BSE provides an efficient and transparent market
for trading in equity, debt instruments, derivatives, mutual funds. It also has a
platform for trading in equities of small-and-medium enterprises. More than 5500
companies are listed on BSE making it world's No. 1 exchange in terms of listed
members.

46
The companies listed on BSE command a total market capitalization of USD 1.64
Trillion as of Sep 2015. It is also one of the world's leading exchanges (5th largest
in September 2015) for Index options trading (Source: World Federation of
Exchanges).

BSE also provides a host of other services to capital market participants including
risk management, clearing, settlement, market data services and education. It has
a global reach with customers around the world and a nation-wide presence. BSE
systems and processes are designed to safeguard market integrity, drive the
growth of the Indian capital market and stimulate innovation and competition
across all market segments. BSE is the first exchange in India and second in the
world to obtain an ISO 9001:2000 certification. It is also the first Exchange in the
country and second in the world to receive Information Security Management
System Standard BS 7799-2-2002 certification for its On-Line trading System
(BOLT). It operates one of the most respected capital market educational
institutes in the country (the BSE Institute Ltd.). BSE also provides depository
services through its Central Depository Services Ltd. (CDSL) arm. BSE's popular
equity index - the S&P BSE SENSEX - is India's most widely tracked stock
market benchmark index.

It is traded internationally on the EUREX as well as leading exchanges of the

BRCS nations (Brazil, Russia, China and South Africa). BSE has won several
awards and recognitions that acknowledge the work done and progress made like
India Innovation Award for the Big Data implementation , ICICI Lombard & ET
Now Risk Management BFSI Company 2013, SKOCH Order of Merit Certificate
was awarded to BSE for E -Boss for qualifying amongst India's Best 2013, The
Golden Peacock Global CSR Award for its initiatives in Corporate Social
Responsibility, NASSCOM - CNBC-TV18's IT User Awards, 2010 in Financial
Services category, Skoch Virtual Corporation 2010 Award in the BSE StAR MF
category and Responsibility Award (CSR) by the World Council of Corporate
Governance. Its recent milestones include the launching of BRICSMART indices
derivatives, BSE-SME Exchange platform, S&P BSE GREENEX to promote
investments in Green India

47
Vision :

"Emerge as the premier Indian stock exchange with best-in-class global practice in
technology, products innovation and customer service."

Heritage :

BSE Ltd, the first ever stock exchange in Asia established in 1875 and the first in the
country to be granted permanent recognition under the Securities Contract
Regulation Act, 1956, has had an interesting rise to prominence over the past 140
years. While BSE Ltd is now synonymous with Dalal Street, it was not always so.
The first venue of the earliest stock broker meetings in the 1850s was in rather
natural environs - under banyan trees - in front of the Town Hall, where Horniman
Circle is now situated. A decade later, the brokers moved their venue to another set
of foliage, this time under banyan trees at the junction of Meadows Street and what
is now called Mahatma Gandhi Road. As the number of brokers increased, they had
to shift from place to place, but they always overflowed to the streets. At last, in
1874, the brokers found a permanent place, and one that they could, quite literally,
call their own. The new place was, aptly, called Dalal Street (Brokers' Street). The
journey of BSE Ltd. is as eventful and interesting as the history of India's securities
market.

In fact, as India's biggest bourse in terms of listed companies and market

capitalization, almost every leading corporate in India has sourced BSE Ltd. services
in raising capital and is listed with BSE Ltd. Even in terms of an orderly growth,
much before the actual legislations were enacted, BSE Ltd. had formulated a
comprehensive set of Rules and Regulations for the securities market. It had also laid
down best practices which were adopted subsequently by 23 stock exchanges which
were set up after India gained its independence.
BSE Ltd., as a institutional brand, has been and is synonymous with the capital
market in India. Its S&P BSE SENSEX is the benchmark equity index that reflects
the health of the Indian economy.

Brand Identity :

48
Bombay Stock Exchange has now adopted only its initials as the new name (BSE),
positioning itself better position as a national multi-asset financial infrastructure
institution. BSE’s strategic shift in approach, attitude and business focus is reflected
in its new tag line - Experience the New.
With renewed zeal and focus on new business opportunities, product and service
innovation, upgrades in technology, increased investor and member focus, BSE is
always pushing the envelope on all fronts. The ambition is to continually improve
and adopt new and better ways of conducting our business. As the first stock
exchange in Asia and the pioneer of securities transaction business, BSE prides itself
on being at the forefront of bringing innovations to the Indian capital markets while
creating diverse investment opportunities for the investor community in India
throughout its long history.

Achievements :

At par with international standards, BSE Ltd. has been a pioneer in several areas
over the decades and has many firsts and key achievements to its credit. BSE is the
first exchange in India to

i. Launch a special platform for trading in SME securities

ii. Introduce Equity Derivatives
iii. Launch a Free Float Index - S&P BSE SENSEX
iv. Launch Exchange Enabled Internet Trading Platform
v. Obtain ISO certification for a stock exchange
vi. Exclusive facility for financial training – BSE Institute Ltd.
vii. Launch its website in Hindi and regional languages
viii. Host the popular opening-bell ceremony in Indian capital markets
ix. Launch mobile-based trading in India in Sept 2010
x. Become securities market infrastructure member of SWIFT in India and
provide corporate actions to custodians in ISO 15022 format

49
 xi. Launched S&P BSE SENSEX Realized S&P BSE Volatility (REALVOL)
Index in Nov 2010
xii. Besides the above, BSE has taken large strides in product and service
innovation for the benefit of its members and investors, notable ones being
i. Launch of a reporting platform for corporate bonds
ii. Launch of the S&P BSE IPO index and S&P BSE PSU website
iii. Revamp of its website with wide range of new investor-friendly features
iv. Launch of trading in S&P BSE SENSEX futures on EUREX and leading
exchanges of the BRICS nation bloc
v. Launched Smart Order Routing for members and investors
vi. Introduced SACT (SMS alert & Complaint Tracking system)
vii. Launched co-location facility at BSE premises in November 2010
viii. Reduction in membership fees to Rs. 10 lakh for new memberships to promote
financial access and inclusion
ix. Launch of web-based mutual fund trading platform for investors

Awards & Recognitions :

As a pioneering financial institution in the Indian capital market, BSE has won
several awards and recognitions that acknowledge the work done and progress made.

i. CIO Power List 2015

ii. SKOCH Renaissance Award 2014 for Contribution to Economy
iii. SKOCH Renaissance Award 2014 for Corporate Social Responsibility
iv. Net magic Innovative Champion Award – IT Consolidation growth &
Scalability 2014
v. India Innovative Awards- Big Data Innovation 2014
vi. ET Now – CISCO Technology Awards 2014
vii. Unicom –India Top 50 companies with best software 2014
viii. HR was awarded with Asia's Best Employer Brand Awards at Singapore in
two categories in August 2014
ix. Lokmat HR Leadership Award at Mumbai in June-2014
x. 50 most talented global HR leaders in Asia at the World HRD congress at
Mumbai in February-2014

50
 xi. FIICI-Frames Best Animation Film-International Category for the Investor
Education television commercial
xii. India Innovation Award for Big Data Implementation
xiii. ICICI Lombard & ET Now Risk Manager Award in BFSI Category
xiv. SKOCH Order of Merit for E-Boss for qualifying among India’s Best 2013
xv. Indian Merchant Chamber Award in the Large Enterprise Category for use of
Information Technology
xvi. Best Managed Financial Derivatives Exchange in the Asia Pacific by the
Asian Banker
xvii. The Golden Peacock Global CSR Award for its initiatives in Corporate Social
Responsibility
xviii. BSE has won NASSCOM - CNBC-TV18’s IT User Awards, 2010 in
Financial Services category
xix. BSE has won Skoch Virtual Corporation 2010 Award in the BSE StAR MF
category
xx. Responsibility Award (CSR), by the World Council of Corporate Governance
xxi. Annual Reports and Accounts of BSE have been awarded the ICAI awards for
excellence in financial reporting for four consecutive years from 2006
onwards
xxii. Human Resource Management at BSE has won the Asia - Pacific HRM
awards for its efforts in employer branding through talent management at
work, health management at work and excellence in HR through technology

CSR (Corporate Social Responsibility) :

Corporate Social Responsibility (CSR) in BSE is aligned with its tradition of

creating wealth in the community with a three pronged focus on Education, Health
and the Environment. Besides funding charitable causes for the elderly and the
physically challenged, BSE has been supporting the rehabilitation and restoration
efforts in earthquake-hit communities of Gujarat. BSE has been awarded the Golden
Peacock Global - CSR Award for its initiatives in Corporate Social Responsibility
(CSR) by the World Council of Corporate Governance.

51
 COMPANY PROFILE
ZEN MONEY:

Zen Money is one of the leading financial services company -providing Financial
and Investment related Services and Products. The Company commenced as a
proprietary concern of M/s K. Ravindra Babu in 1986 was converted to a Limited
company in February 1995 as Zen Money. Zen has the distinction of being the First
Corporate Member from Hyderabad and also the first A.P. based broking firm to
start trading on the National Stock Exchange (NSE). ZEN is a registered Member on
the Capital Market Segment and Futures & Options segment of both NSE and BSE.
ZEN is also a Depository Participant (DP) with National Securities Depository Ltd.
(NSDL) and also with Central Depositories Services Ltd. (CDSL). ZEN is also a
SEBI Registered Portfolio Manager offering Portfolio Management Services to
clients. Zen Com trade Pvt. Limited a 100% subsidiary of ZSL and is a member of
National Commodities & Derivatives Exchange Limited (NCDEX) and Multi
Commodity Exchange (MCX). ZEN operates from Hyderabad as it head office and
52
has branches and associates in Andhra Pradesh, Tamil Nadu, Maharashtra,
Karnataka, West Bengal and Orissa. The Company operates from over 140 locations
with over 500 trading terminals.

Services Offered by Zen Securities Limited:

• Investment advisory services

• Trading in cash market of NSE and BSE

• Trading in Futures and Options on NSE and BSE

• Internet Trading in Stocks, futures and Options both NSE and BSE

• Mutual Funds advisory service

• Depository Services in Both NSDL and CDSL

• Trading in Commodities on MCX and NCDEX

• Portfolio Management Services

• NRI Investor Services

• PAN Application Service

• Mutual Fund KYC Registration Service

• New Pension System(NPS)

• Fixed Income Securities / Fixed Deposits / RBI Bonds / Tax Saving Bonds

Our Founder:

Shri Ravindra Babu Kantheti founded Zen Securities Ltd as a stock broking
company and led its evolution into a highly respectable financial services company
known for its ethics and values. He passionately believed that one can be successful
in business without compromising on ethics. Thru Zen he demonstrated this
philosophy and inspired every one of us by setting an example. His ethical,
transparent and trustworthy approach to business has inspired all of us to build a very
vibrant, successful and strong organization. We at Zen totally rededicate ourselves to
continue to build the organization on sound foundations of trust, values and
relationship with clients, servicing their investment needs as set out by our founder
Sri K.RavindraBabu.

53
Board of Directors:

Directors of Zen Securities Ltd. have considerable experience and expertise ranging
over many industries such as financial services, pharmaceuticals, manufacturing,
banking and Information Technology among others. They are some of the most
highly respected people in their professional circles.

 Mr. Pratap Kantheti, Managing Director

 Mr. Satish Kantheti, Jt. Managing Director
 . Mr. K. Gandhi, Director
 Mr. Satyanarayana Ch. Ravi (RS), Whole Time Director
 Mr. Sambasiva Rao Patibandla, Executive Director
 Mr. Narayanan Narayanan, Director
 Mr .K. Venkat Reddy, Director
 Mr.Namashivaya Renukuntla, Director and Head of Compliance

SERVICES:

Stock Broking

Zen Securities Limited provides the following equity related trading services to the
investors:

• Capital Market Segment of NSE and BSE

• Futures & Options segment of NSE and BSE

ZEN operates from Hyderabad as it head office and has branches and associates in
Andhra Pradesh, Tamil Nadu, Maharashtra, Karnataka, West Bengal and Orissa. The
Company operates from over 140 locations with over 500 trading terminals Internet
Trading Internet trading is easy, convenient and reliable with Zen Trade

Advantages of Zen Trade - Internet Trading Platform

 Flexible and advanced trading platform

 Simple, reliable and easy to use
 Futures & Options segment of NSE and BSE

54
  Integrated payment gateways – facilitates online transfer of funds from your
banks (ICICI /Axis/Corp / Yes bank etc.) for instant limits (on funds
transferred)
 Integrated with Zen DP account – seamless settlement
 Take full control of trading and trade with privacy from any place of your
choice.
 Choice of Trading from Internet or Branch
 Choice of Browser based or EXE based trading

Market watch

• Streaming market quotes

• Multiple market watch

• Integrated market watch for viewing NSE / BSE / NSE FAO on one screen

• Access to trade in NSE / BSE and NSE FAO Segments

INTRADAY AND DELIVERY DIFFERENTIATION:

• Different limits for INTRADAY and DELIVERY

• Auto square off of all INTRADAY orders 15 minutes before close of trading

• Convert INTRADAY trades to DELIVERY trades on availability of

credit/margin source

Access to statements

 Stock Statements - View Stocks in your DP account and also Zen Benf
account.

 Statements – View Cash available in your Zen Broking account.

 Mutual Funds – View Transaction/Holding statements with Latest NAV’s

 Zen Statement - Zen statement of assets with Zen, (Stocks+Cash+Mutual

funds)

CORE VALUES
55
 We are committed to honesty, integrity and ethics in all that we do.
 We create significant value by bringing together innovation, knowledge and
experience to help our customers achieve their goals.
 We treat customers the way we would want to be treated.
 We deliver happiness to customers, employees and other stakeholders.
 We work with passion, commitment and enthusiasm to deliver excellence.
 We are a socially responsible and environment-friendly corporate citizen.

Market Review

Markets traded in a narrow range for the month of November after witnessing a
strong rally in October. Although markets touched new highs, index broadly
consolidated with continued valuation concerns, rising global crude prices and profit
booking at higher levels capping the gains, while stock specific moves tracking
corporate updates directed the markets.
 September quarter earnings remained better than expected, infact, the reported
quarter was the best quarter in the recent times aided by restocking of
inventories after the rollout of the Goods and Services Tax (GST) on July 1st
and festive demand. Companies in consumer focused sectors including
Automobiles, Consumer Durables, FMCG, Hospitality and Retail posted
strong revenue growth.
 Macro economic data remained weak during the month with subdued IIP
growth, Participatory Notes (P-notes) plunging to an eight-year low, widening
of trade deficit, rising inflation to a seven month high and possible escalation
in coming months, negating the prospects of future interest rate cuts by RBI.
 Government slashed GST rates on 210 items of which 180 were in the top 28
percent bracket which boosted sentiment and resulted in sector specific
movement.
 International rating agency Moody’s upgraded India's soverign debt rating to
Baa2 from Baa3 and changed the outlook to stable from positive endorsing
structural reforms undertaken by the Govt., while Standard & Poor’s (S&P)
kept India's rating unchanged at the lowest investment grade of BBB–, with a
stable outlook, citing a sizeable fiscal deficit, high general Govt. debt and low
per capita income.

56
  Global markets remained mixed largely directed by corporate news flows,
while concerns over Germany’s political crisis, weakness in Chinese bourses,
Brexit negotiations, U.S Fed’s and ECB’s meeting minutes and escalating
Middle East tensions weighed on market movement. However, U.S. markets
extended the rally in anticipation of tax reforms.
 Rupee remained flat during the month with marginal appreciation, while
strong buying was witnessed from both DIIs and FIIs.

New Pension System

Zen Securities Limited is registered as POP (Point Of Presence) for NPS-PFRDA. It

takes care of functions relating to registration of subscribers, undertaking Know
Your Customer (KYC) verification, receiving contributions and instructions from
subscribers and transmission of the same to designated NPS intermediaries. It has 25
branches that are acting as Point of Presence Service Providers (POP-SP) which
provides services like subscriber registration, receiving regular contributions,
modifications in address, nominations, bank details, grievance handling and MIS
uploading etc.
And it is already providing services like Online Trading in Equity, Future & Option
Seg, Commodities, Currency Derivatives, Interest Rate Futures, Mutual Funds
Distribution, Portfolio Management Service, Depository Participant, Point of Service
for PAN, Point of Collection for MF-KYC to its customers.

NRI Services

ZEN Securities offers a total solution to its NRI clients. We offer services under the
RBI's Portfolio Investment Scheme (PIS) to buy and sell shares through the Indian
stock exchanges.
We coordinate with the RBI approved Bank to open an NRI account. We will also
open the Brokerage account and the Demat Account for the NRI. These three
accounts will be opened simultaneously in the NRI's name.

We will coordinate the transfer of shares to/from NRI's demat account and money
to/from NRI's bank account as per the settlement.

57
We have setup a separate NRI Services team to guide the NRI through the
application process and the day to day investment process.

Flexible and advanced trading platform

Simple, reliable and easy to use
Futures & Options segment of NSE and BSE
Integrated payment gateways – facilitates online transfer of funds from your
banks (ICICI /Axis/Corp / Yes bank etc.) for instant limits (on funds transferred)
Integrated with Zen DP account – seamless settlement
Take full control of trading and trade with privacy from any place of your
choice.
Choice of Trading from Internet or Branch
Choice of Browser based or EXE based trading

Market watch
Streaming market quotes
Multiple market watch
Integrated market watch for viewing NSE / BSE / NSE FAO on one screen
Access to trade in NSE / BSE and NSE FAO Segments

INTRADAY and DELIVERY differentiation

Different limits for INTRADAY and DELIVERY
Auto square off of all INTRADAY orders 15 minutes before close of trading
Convert INTRADAY trades to DELIVERY trades on availability of credit/margin
source

Access to statements
Stock Statements - View Stocks in your DP account and also Zen Benf account
Statements – View Cash available in your Zen Broking account
Mutual Funds – View Transaction/Holding statements with Latest NAV’s
Networth Statement - Networth statement of assets with Zen, (Stocks+Cash+Mutual
funds)
ZenTr@de is an integrated CTCL and internet trading platform offering the choice to
58
trade in a branch or in internet or both as per client’s convenience and choice.

The platform offers all the conveniences and advantages mentioned above.

Stock Broking

Zen Securities Limited provides the following equity related trading services to the
investors:
Capital Market Segment of NSE and BSE
Futures & Options segment of NSE and BSE
ZEN operates from Hyderabad as it head office and has branches and associates in
Andhra Pradesh, Tamil Nadu, Maharashtra, Karnataka, West Bengal and Orissa. The
Company operates from over 140 locations with over 500 trading terminals.

CHAPTER-4

DATA ANALYSIS AND INTERPRETATION

59
  DATA COLLECTION AND ANALYSIS

STATEMENT SHOWING CALCULATION OF CORRELATION CO-EFFICIENT

AMBUJACEM

MP MP
Before After
Dividend Dividend
Date (x) Date (y) X2 Y2 X*Y

18-Jan-17 198.7 8-Feb-17 189.55 39481.69 35929.2 37663.59

21-Jan-17 199.5 11-Feb-17 188.4 39800.25 35494.56 37585.8

22-Jan-17 198.3 12-Feb-17 188.9 39322.89 35683.21 37458.87
23-Jan-17 197.05 13-Feb-17 189.9 38828.7 36062.01 37419.8

24-Jan-17 197.25 14-Feb-17 190.8 38907.56 36404.64 37635.3

25-Jan-17 199.15 15-Feb-17 192.15 39660.72 36921.62 38266.67

28-Jan-17 197.05 18-Feb-17 190.9 38828.7 36442.81 37616.85

60
29-Jan-17 197.05 19-Feb-17 193.5 38828.7 37442.25 38129.18

30-Jan-17 200.25 20-Feb-17 199.8 40100.06 39920.04 40009.95

31-Jan-17 203.9 21-Feb-17 197.2 41575.21 38887.84 40209.08

1-Feb-17 198.8 22-Feb-17 198.5 39521.44 39402.25 39461.8

4-Feb-17 197 25-Feb-17 200.35 38809 40140.12 39468.95

5-Feb-17 202.05 26-Feb-17 197.3 40824.2 38927.29 39864.47

6-Feb-17 206.3 27-Feb-17 197.55 42559.69 39026 40754.57

7-Feb-17 199.95 28-Feb-17 191.55 39980 36691.4 38300.42

 TOTAL 2992.3   2906.35 597028.8 563375.3 579845.3

r= ∑dxdy - (∑dx) (∑dy)

√∑dx2-(∑dx) 2 * √∑dy2 – (∑dy) 2

n n

579845.3-(2992.3) (2906.35)

15

√597028.8- (2992.3)2 * √ 563375.3 (2906.35)2

15 15

579845.3- 579778.073

√597028.8- 596923.95* √ 563375.3- 563124.68

67.22

61
 10.23*15.83

67.22

161.94

r= 0.415

Interpretation:-

Above table shows calculation of correlation coefficient of between before

dividend and after dividend declared market prices. The market price fluctuations are
significant. The highest price before dividend is 206.3 and highest price after
dividend is 200.35.

GRAPH

62
Automotive Axles

MARKET CAP (Rs Cr)

500.21

*P/E

15.94

*BOOK VALUE (Rs)

179.54

DIV (%)

100.00%

Market Lot

INDUSTRY P/E

8.83

63
*EPS (TTM)

20.76

*P/C

8.51

*PRICE/BOOK

1.84

DIV YIELD.(%)

3.02%

FACE VALUE (Rs)

10.00

DELIVERABLES (%)

85.89

PE*EPS=15.94*20.76=330.91

MARKET VALUE =336.50

Over VALUE

64
STATEMENT SHOWING CALCULATION OF CORRELATION CO-EFFICIENT
AUTOAXLES

MP BEFORE MP AFTER
Date DIVIDEND(X) Date DIVIDEND(Y) x2 y2 x*y

9-Nov-12 371.05 30-Nov-12 361.95 137678.1 131007.8 134301.5

12-Nov-12 370.3 3-Dec-12 357.7 137122.1 127949.3 132456.3

13-Nov-12 373.45 4-Dec-12 371.75 139464.9 138198.1 138830

15-Nov-12 367.95 5-Dec-12 362.65 135387.2 131515 133437.1

16-Nov-12 362.65 6-Dec-12 366.6 131515 134395.6 132947.5

19-Nov-12 353.6 7-Dec-12 359.75 125033 129420.1 127207.6

20-Nov-12 358.7 10-Dec-12 358.3 128665.7 128378.9 128522.2

21-Nov-12 365.05 11-Dec-12 358.95 133261.5 128845.1 131034.7

22-Nov-12 367.7 12-Dec-12 361.1 135203.3 130393.2 132776.5

23-Nov-12 364 13-Dec-12 362.6 132496 131478.8 131986.4

26-Nov-12 368 14-Dec-12 361.9 135424 130971.6 133179.2

27-Nov-12 367.85 17-Dec-12 363.9 135313.6 132423.2 133860.6

29-Nov-12 355.3 18-Dec-12 361.2 126238.1 130465.4 128334.4

 TOTAL 4745.6   4708.35 1732802 1705442 1718874

r= ∑dxdy - (∑dx) (∑dy)

n
65
 √∑dx2-(∑dx) 2 * √∑dy2 – (∑dy) 2

n n

1718874-(4745.6) (4708.35)

13

√1732802- (4745.6)2 * √ 1705442- (4708.35)2

13 13

1718874 - 1718765

√1732802 - 1732363 * √ 1705442 - 1705273

109

21*13

109

273

r= 0.399

Interpretation:-

The above table shows calculation of correlation coefficient of between before

dividend and after dividend declared market prices. The market price fluctuations are
significant. The highest price before dividend is 373.45 and highest price after
dividend is 371.75.

66
GRAPH

67
Walchandnagar Industries

MARKET CAP (Rs Cr)

243.08

*P/E

187.79

*BOOK VALUE (Rs)

105.76

DIV (%)

50.00%

Market Lot

INDUSTRY P/E

8.24

*EPS (TTM)

0.34

*P/C

12.62

*PRICE/BOOK

0.60

DIV YIELD.(%)

1.57%

FACE VALUE (Rs)

2.00
68
DELIVERABLES (%)

40.20

PE*EPS=187.79*0.34=63.84

MARKET VALUE=63.85

FAIRLY VALUED

STATEMENT SHOWING CALCULATION OF CORRELATION CO-EFFICIENT

WALCHANNAG

MP
BEFORE MP After
DIVIDEN DIVIDEN
Date D (X) Date D (y) x2 y2 x*y
7-Nov- 27-Nov-
12 75.6 12 82.4 5715.36 6789.76 6229.44
8-Nov- 29-Nov- 6456.12 6114.63
12 76.1 12 80.35 5791.21 3 5
9-Nov- 30-Nov-
12 74.8 12 81.6 5595.04 6658.56 6103.68
12-Nov- 5513.06 6748.62 6099.63
12 74.25 3-Dec-12 82.15 3 3 8
13-Nov- 6947.22 6209.57
12 74.5 4-Dec-12 83.35 5550.25 3 5
15-Nov- 6980.60 6358.15
12 76.1 5-Dec-12 83.55 5791.21 3 5
16-Nov- 5707.80 7064.40 6349.97
12 75.55 6-Dec-12 84.05 3 3 8
19-Nov-
12 79.8 7-Dec-12 85.1 6368.04 7242.01 6790.98
20-Nov- 10-Dec- 5753.22 6470.00
12 75.85 12 85.3 3 7276.09 5
21-Nov- 75.6 11-Dec- 84.1 5715.36 7072.81 6357.96

69
 12 12
22-Nov- 12-Dec- 7595.12
12 74.8 12 87.15 5595.04 3 6518.82
23-Nov- 13-Dec- 8996.52 7142.20
12 75.3 12 94.85 5670.09 3 5
26-Nov- 14-Dec- 6107.42 8308.32 7123.37
12 78.15 12 91.15 3 3 3
74873.1 94136.1 83868.4
 TOTAL 986.4   1105.1 1 7 4

r= ∑dxdy - (∑dx) (∑dy)

√∑dx2-(∑dx) 2 * √∑dy2 – (∑dy) 2

n n

83868.44-(986.4) (1105.1)

13

√74873.11- (986.4)2 * √ 94136.17- (1105.1)2

13 13

83868.44- 83851.58

√74873.11- 74844.99 * √94136.17 – 93942.00

16.86

5.3*13.93

16.86

73.8

70
 r = 0.23

Interpretation:- The above table shows calculation of correlation coefficient of

between before dividend and after dividend declared market prices. The market price
fluctuations are significant. The highest price before dividend is 79.8 and highest
price after dividend is 94.85.

GRAPH

71
Siemens

MARKET CAP (Rs Cr)

18,613.75

*P/E

52.04

*BOOK VALUE (Rs)

112.56

DIV (%)

300.00%

Market Lot

INDUSTRY P/E

50.28

*EPS (TTM)

10.16

*P/C

33.32

*PRICE/BOOK

4.70

DIV YIELD.(%)

1.13%

FACE VALUE (Rs)

2.00

DELIVERABLES (%)
72
PE*EPS=52.04*10.16=528.73

MARKET VALUE = 527.60

UNDER VALUED

STATEMENT SHOWING CALCULATION OF CORRELATION CO-EFFICIEN

SIEMENS

MP
BEFORE MP AFTER
DIVIDEND DIVIDEND
Date (x) DATE (y) x2 y2 x*y
6-Nov-12 711.1 26-Nov-12 665.85 505663.2 443356.2 473485.9
7-Nov-12 706.2 27-Nov-12 674.1 498718.4 454410.8 476049.4
8-Nov-12 699.25 29-Nov-12 669.55 488950.6 448297.2 468182.8
9-Nov-12 686.65 30-Nov-12 670.6 471488.2 449704.4 460467.5
12-Nov-12 674.75 3-Dec-12 676 455287.6 456976 456131
13-Nov-12 679.35 4-Dec-12 680.75 461516.4 463420.6 462467.5
15-Nov-12 672.95 5-Dec-12 683.45 452861.7 467103.9 459927.7
16-Nov-12 669.95 6-Dec-12 681.9 448833 464987.6 456838.9
19-Nov-12 669.5 7-Dec-12 682.3 448230.3 465533.3 456799.9
20-Nov-12 668.9 10-Dec-12 676.9 447427.2 458193.6 452778.4
21-Nov-12 667.15 11-Dec-12 677.45 445089.1 458938.5 451960.8
22-Nov-12 658.75 12-Dec-12 683.95 433951.6 467787.6 450552.1
23-Nov-12 659.1 13-Dec-12 687.5 434412.8 472656.3 453131.3
TOTAL  8823.6   8810.3 5992430 5971366 5978773

r= ∑dxdy - (∑dx) (∑dy)

√∑dx2-(∑dx) 2 * √∑dy2 – (∑dy) 2

n n

73
 5978773-(8823.6) (8810.3)

13

√5992430- (8823.6)2 * √ 5971366 -(8810.3)2

13 13

5978773- 5979889

√5992430 - 5988917* √5971366 - 5970876

-1116

59.2*22.1

-1116

1308.32

Interpretation:-

The above table shows calculation of correlation coefficient of between before

dividend and after dividend declared market prices. The market price fluctuations are
significant. The highest price before dividend is 711.1 and highest price after
dividend is 687.5.

74
GRAPH

M phasis

MARKET CAP (Rs Cr)

7,879.49

*P/E

12.89

*BOOK VALUE (Rs)

172.84

DIV (%)

170.00%

Market Lot

INDUSTRY P/E

21.00
75
*EPS (TTM)

29.08

*P/C

10.86

*PRICE/BOOK

2.17

DIV YIELD.(%)

4.53%

FACE VALUE (Rs)

10.00

DELIVERABLES (%)

77.85

PE*EPS=12.89*29.08=374.84

MARKET VALUE= 377.10

OVER VALUED

76
 STATEMENT SHOWING CALCULATION OF CORRELATION CO-EFFICIENT
MPHASIS

MP MP
BEFORE AFTER
DIVIDEN DIVIDEN
Date D (X) Date D (Y) X2 Y2 X*Y
16-Nov- 157569. 158164.
12 396.95 6-Dec-12 398.45 3 158762.4 7
19-Nov- 158961. 156031.
12 398.7 7-Dec-12 391.35 7 153154.8 2
20-Nov- 10-Dec-
12 400 12 383 160000 146689 153200
21-Nov- 11-Dec- 157172. 151523.
12 396.45 12 382.2 6 146076.8 2
22-Nov- 12-Dec- 151738.
12 395.1 12 384.05 156104 147494.4 2
23-Nov- 13-Dec- 151322.
12 395.2 12 382.9 156183 146612.4 1
26-Nov- 14-Dec- 160520. 152307.
12 400.65 12 380.15 4 144514 1
27-Nov- 17-Dec-
12 400 12 375.9 160000 141300.8 150360
29-Nov- 18-Dec- 147994. 146378.
12 384.7 12 380.5 1 144780.3 4
30-Nov- 19-Dec- 150660.
12 388.15 12 382.7 4 14645.3 148545
3-Dec- 20-Dec- 162046. 153995.
12 402.55 12 382.55 5 146344.5 5
4-Dec- 21-Dec- 151282. 149026.
12 388.95 12 383.15 1 146803.9 2
5-Dec- 388.4 24-Dec- 377.55 150854. 142544 146640.
77
 12 12 6 4
202934
TOTAL  5135.8   4984.45 9 1911537 1969232

r= ∑dxdy - (∑dx) (∑dy)

√∑dx2-(∑dx) 2 * √∑dy2 – (∑dy) 2

n n

1969232-(5135.8) (4984.45)

13

√2029349- (5135.8)2 * √ 1911537-(4984.45)2

13 13

1969232 - 1969164

√2029349 - 2028957 * √ 1911537 -1911134

68

20*20.07

68

401.4

r=0.16

Interpretation:-

The above table shows calculation of correlation coefficient of between before

dividend and after dividend declared market prices. The market price fluctuations are

78
significant. The highest price before dividend is 402.55 and highest price after
dividend is 398.45.

GRAPH

Hexaware Tech

MARKET CAP (Rs Cr)

2,526.56

*P/E

8.85

*BOOK VALUE (Rs)

38.60

DIV (%)

200.00%

79
Market Lot

INDUSTRY P/E

21.00

*EPS (TTM)

9.63

*P/C

8.08

*PRICE/BOOK

2.21

DIV YIELD.(%)

4.69%

FACE VALUE (Rs)

2.00

DELIVERABLES (%)

32.47

P/E*EPS = 8.85*9.63 = 85.22

Market value = 85.20

Over Valued

80
STATEMENT SHOWING CALCULATION OF CORRELATION CO-EFFICIENT
HEXAWARE

MP AFTER
MP BEFORE DIVIDEND
Date DIVIDEND(X) Date (Y) X2 Y2 X*Y
12-
23-Jan- Feb-
17 85.9 17 83.85 7378.81 7030.823 7202.715
13-
24-Jan- Feb-
17 77.25 17 83.85 5967.563 7030.823 6477.413
14-
25-Jan- Feb-
17 81.1 17 80.75 6577.21 6520.563 6548.825
15-
28-Jan- Feb-
17 82.35 17 82.25 6781.523 6765.063 6773.288
18-
29-Jan- Feb-
17 80.7 17 85.45 6512.49 7301.703 6895.815
19-
30-Jan- Feb-
17 79.75 17 85.35 6360.063 7284.623 6806.663
20-
31-Jan- Feb-
17 78.9 17 87.5 6225.21 7656.25 6903.75
21-
1-Feb- Feb-
17 76.8 17 88.4 5898.24 7814.56 6789.12
22-
4-Feb- Feb-
17 76.2 17 86.65 5806.44 7508.223 6602.73
81
 25-
5-Feb- Feb-
17 75.4 17 86.75 5685.16 7525.563 6540.95
26-
6-Feb- Feb-
17 77.65 17 85.2 6029.523 7259.04 6615.78
27-
7-Feb- Feb-
17 80.6 17 86.1 6496.36 7413.21 6939.66
28-
8-Feb- Feb-
17 81.3 17 86.35 6609.69 7456.323 7020.255
1-
11-Feb- Mar-
17 84 17 87.9 7056 7726.41 7383.6
 TOTAL 1117.9   1196.35 89384.28 102293.2 95500.56

r= ∑dxdy - (∑dx) (∑dy)

√∑dx2-(∑dx) 2 * √∑dy2 – (∑dy) 2

n n

95500.56-(1117.9) (1196.35)
82
 14

√89384.28 - (1117.9)2 * √102293.2 -(1196.35)2

14 14

95500.56-95528.54

√89384.28 – 89264.315* √ 102293.2 – 102232.38

-27.98

10.95*7.79

-27.98

85.30

r= -0.33

Interpretation:-

The above table shows calculation of correlation coefficient of between before

dividend and after dividend declared market prices. The market price fluctuations are
significant. The highest price before dividend is 85.9 and highest price after
dividend is 88.4.

83
GRAPH

ACC

MARKET CAP (Rs Cr)

24,346.10

*P/E

22.94

84
*BOOK VALUE (Rs)

382.67

DIV (%)

280.00%

Market Lot

INDUSTRY P/E

20.03

*EPS (TTM)

56.46

*P/C

15.03

*PRICE/BOOK

3.39

DIV YIELD.(%)

2.16%

FACE VALUE (Rs)

10.00

DELIVERABLES (%)

55.44

P/E*EPS = 22.94*56.46 = 1295.19

Market value=1298.35

Over Valued

STATEMENT SHOWING CALCULATION OF CORRELATION CO-EFFICIENT

ACC

85
 MP
BEFORE MP AFTER
DIVIDEND DIVIDEND
Date (X) Date (Y) X2 Y2 X*Y
21-Jan- 8-Feb-
17 1335.5 17 1303.75 1783560 1699764 1741158
22-Jan- 11-Feb-
17 1358.9 17 1258.1 1846609 1582816 1709632
23-Jan- 12-Feb-
17 1355.1 17 1239.2 1836296 1535617 1679240
24-Jan- 13-Feb-
17 1345.9 17 1249.3 1811447 1560750 1681433
25-Jan- 14-Feb-
17 1326.75 17 1246.05 1760266 1552641 1653197
28-Jan- 15-Feb-
17 1328.85 17 1258.85 1765842 1584703 1672823
29-Jan- 18-Feb-
17 1304.9 17 1262.2 1702764 1593149 1647045
30-Jan- 19-Feb-
17 1324.75 17 1299.8 1754963 1689480 1721910
31-Jan- 20-Feb-
17 1323.1 17 1311.15 1750594 1719114 1734783
1-Feb- 21-Feb-
17 1318.75 17 1301 1739102 1692601 1715694
4-Feb- 22-Feb-
17 1300.55 17 1300.95 1691430 1692471 1691951
5-Feb- 25-Feb-
17 1323.7 17 1305.6 1752182 1704591 1728223
6-Feb- 26-Feb-
17 1333.1 17 1298.35 1777156 1685713 1730830
7-Feb- 27-Feb-
17 1344.3 17 1302.3 1807142 1695985 1750682
TOTAL  18624.15   17936.6 24779352 22989395 23858599

86
 r= ∑dxdy - (∑dx) (∑dy)

√∑dx2-(∑dx) 2 * √∑dy2 – (∑dy) 2

n n

23858599-(18624.15) (17936.6)

14

√24779352- (18624.15)2 * √ 22989395- (17936.6)2

14 14

23858599 - 23860995

√24779352- 24775640 * √22989395 - 22980116

-2396

61*96

-2396

5856

r= -0.4

Interpretation:-

The above table shows calculation of correlation coefficient of between before

dividend and after dividend declared market prices. The market price fluctuations are
significant. The highest price before dividend is 1358.9 and highest price after
dividend is 1311.15.

87
GRAPH

Foseco India

MARKET CAP (Rs Cr)

301.54

*P/E

13.82

*BOOK VALUE (Rs)

156.43

DIV (%)

180.00%
88
Market Lot

INDUSTRY P/E

10.91

*EPS (TTM)

34.16

*P/C

11.39

*PRICE/BOOK

3.02

DIV YIELD.(%)

3.81%

FACE VALUE (Rs)

10.00

DELIVERABLES (%)

66.76

P/E*EPS = 13.82*34.16 =472.09

Market Value = 469.20

Under Valued

STATEMENT SHOWING CALCULATION OF CORRELATION CO-EFFICIENT

FOSECOIND

MP MP
BEFORE AFTER
DICIDEN DIVIDEN
Date D (X) Date D (Y) X2 Y2 X*Y
89
 1-Jan- 22- 312816. 305311. 309041.
17 559.3 Jan-17 552.55 5 5 2
2-Jan- 23- 303711. 292027.
17 551.1 Jan-17 529.9 2 280794 9
3-Jan- 24- 314328. 268479. 290500.
17 560.65 Jan-17 518.15 4 4 8
4-Jan- 25- 272275. 295860.
17 567 Jan-17 521.8 321489 2 6
7-Jan- 28- 272014. 300934.
17 577 Jan-17 521.55 332929 4 4
8-Jan- 29- 337328. 251151. 291067.
17 580.8 Jan-17 501.15 6 3 9
9-Jan- 30- 339306. 285308.
17 582.5 Jan-17 489.8 3 239904 5
10-Jan- 31- 222265. 269386.
17 571.4 Jan-17 471.45 326498 1 5
11-Jan- 1-Feb- 321545. 224533. 268696.
17 567.05 17 473.85 7 8 6
14-Jan- 4-Feb- 317419. 248402. 280798.
17 563.4 17 498.4 6 6 6
15-Jan- 5-Feb- 328443. 250350. 286750.
17 573.1 17 500.35 6 1 6
16-Jan- 6-Feb- 313264. 249350. 279486.
17 559.7 17 499.35 1 4 2
17-Jan- 7-Feb- 308469. 248801. 277033.
17 555.4 17 498.8 2 4 5
18-Jan- 8-Feb- 314384.
17 560.7 17 488.6 5 238730 273958
21-Jan- 11- 320865.
17 566.45 Feb-17 481.4 6 231746 272689
 TOTA
L 8495.55   7547.1 4812799 3804109 4273540

90
 r= ∑dxdy - (∑dx) (∑dy)

√∑dx2-(∑dx) 2 * √∑dy2 – (∑dy) 2

n n

4273540-(8495.55) (7547.1)

15

√4812799- (8495.55)2 * √ 3804109 -(7547.1)2

15 15

4273540- 4274451

√4812799 - 4811625* √ 3804109 - 3797248

-911

38.3*83

-911

3179

r = -0.3

Interpretation:-

The above table shows calculation of correlation coefficient of between before

dividend and after dividend declared market prices. The market price fluctuations are
significant. The highest price before dividend is 582.5 and highest price after
dividend is 552.55.

91
GRAPH

92
 CHAPTER-5

FININDINGS

FINDINGS

The present project work has been undertaken to study “The impact of income of
equity investment on market price of equities in stock market. During the study the
following facts have been identified.

 Ambuja Cements : The company has issued a dividend of 160% on face value
of Rs. 2.00.The dividend yield is 1.62%. The correlation coefficient between
before dividend declared and after dividend declared is 0.415. This shows the
price fluctuation before and after dividend are positively correlated.

 Automotive Axles : The company has issued a dividend of 100% on face

value of Rs. 10.00.The dividend yield is 3.02%. The correlation coefficient
between before dividend declared and after dividend declared is 0.399. This
shows the price fluctuation before and after dividend are positively correlated.

 MRF : The company has issued a dividend of 250% on face value of Rs.
10.00.The dividend yield is 0.21%. The correlation coefficient between before
93
 dividend declared and after dividend declared is -0.08. This shows the price
fluctuation before and after dividend are negatively correlated.

 Walchandanagar Industries : The company has issued a dividend of 50% on

face value of Rs. 2.00.The dividend yield is 1.57%. The correlation coefficient
between before dividend declared and after dividend declared is 0.23. This
shows the price fluctuation before and after dividend are positively correlated.

 Siemens : The company has issued a dividend of 300% on face value of Rs.
2.00.The dividend yield is 1.13%. The correlation coefficient between before
dividend declared and after dividend declared is -0.85. This shows the price
fluctuation before and after dividend are negatively correlated.

 Mphasis: The company has issued a dividend of 170% on face value of Rs.
10.00.The dividend yield is 4.53%. The correlation coefficient between before
dividend declared and after dividend declared is 0.16. This shows the price
fluctuation before and after dividend are positively correlated.

 Hexaware Tech : The company has issued a dividend of 200% on face value
of Rs.2.00.The dividend yield is 4.69%. The correlation coefficient between
before dividend declared and after dividend declared is -0.33. This shows the
price fluctuation before and after dividend are negatively correlated.

 FAG Bearings : The company has issued a dividend of 100% on face value of
Rs.10.00.The dividend yield is 0.70%. The correlation coefficient between
before dividend declared and after dividend declared is -0.8. This shows the
price fluctuation before and after dividend are negatively correlated.

 ACC : The company has issued a dividend of 280% on face value of

Rs.10.00.The dividend yield is 2.16%. The correlation coefficient between
before dividend declared and after dividend declared is -0.4. This shows the
price fluctuation before and after dividend are negatively correlated.

94
 Foseco India : The company has issued a dividend of 180% on face value of
Rs.10.00.The dividend yield is 3.81%. The correlation coefficient between
before dividend declared and after dividend declared is -0.3. This shows the
price fluctuation before and after dividend are negatively correlated.

95
 CHAPTER-6

SUGGESTIONS & CONCLUSION

96
SUGGESTIONS

 Investors who are trying to decide how to allocate between stocks and bonds
need to look at their broader investment objective.

 If safety is the primary goal, the best course of action is to invest in more
conservative instruments, such as government bonds or mutual funds that
invest in bonds with shorter maturities.
 If income is the foremost consideration and an investor can afford to take on
some risk, high yield bonds and emerging market bonds will usually be the
best sectors in which to find the highest possible yields.

 If capital appreciation is a priority and income is secondary – but still a

consideration – dividend-paying stocks can play an important role.

 Naturally, there’s no need to invest in just one asset class. Very often, a
combination of these and other investments is necessary to generate the
optimal combination of risk, total return potential, and yield.

 Investors can assemble a high-dividend portfolio in three ways.

 buy individual stocks (an updated list of the highest-yielding companies is

available 
Invest in dividend-focused mutual funds, or utilize the wide range
of dividend ETFs that have been created in recent years.

 There are also numerous ETFs that invest in the highest-dividend stocks in
particular market segments, such as small-cap stocks or the emerging markets.

 You can purchase stocks or ETFs through a broker, and mutual funds are
typically available either from a broker or from the company via a direct
investment.

97
  Be sure to contact a financial advisor or use all the vast online resources
available to conduct comprehensive research before investing.

CONCLUSION

Over the last generation, dividends have been relatively less important to total
returns of equity holdings than they have been historically. In the 1980s, falling
discount rates from a disinflationary environment favored price gains over dividend

98
yields. In the 1990s, outsized gains in growth and technology stocks driven by a
record economic expansion and the ushering in of the Internet Age, saw price returns
outdistance the dividend yield component of equity returns by a record amount. Low
absolute returns in the 2000s perhaps shielded from view the fact that, without the
dividend component, total equity returns would have been decidedly negative.
Investors who have went through this three decade period where dividends were
relatively less important to total equity performance have potentially underestimated
the import of dividend payers prospectively.The objective of this study is to
determine the impact of dividend policy on stock price risk in Indian stock market. A
sample of 10 listed companies in National Stock Exchange is examined for a period.
The empirical estimation is based on a cross-sectional Correlation analysis of the
relationship between stock price volatility and dividend policy after controlling for
firm size, earning volatility, leverage and asset growth. Both the dividend policy
measures (dividend yield and payout ratio) have significant impact on the share price
volatility. The relationship is not reduced much even after controlling for the above
mentioned factors. This suggests that dividend policy affects stock price volatility
and it provides evidence supporting the arbitrage realization effect, duration effect
and information effect in India. Responsiveness of the dividend yield to stock price
volatility increased during reform period bsfore dividend to the after dividend. In
overall period the size and leverage have positive and significant impact on stock
price volatility.

The size effect is negative during pre reform period but positive during reform
period. The earning volatility impact is negative and significant only during reform
period. Although the results are not robust enough as in the case of developed
markets but are consistent with the behavior of emerging markets. The overall study
shows the result satisfactory.

Bibliography
Text books:

Investment Management - V.K.BHALLA.

Investment Management - PRASANNA CHANDRA.

99
Security Analysis and Portfolio Management - PUNITHAVATHY
PANDIYAN.

Financial Markets - JORDAN . NATRAJAN.

Web Sites :

www. Money Control.Com

www. Nse India.Com

www. Bse India.Com

www. Smc Global.Com

Magazines:

Business World

Journals:

Finance India.

100