A Study of Derivatives Market in India

A STUDY OF DERIVATIVES MARKET IN INDIA

1. INTRODUCTION

1.1 EXECUTIVE SUMMARY

The Project at“Kadam Group”hasgivenan

exposureintotheinvestmentscenarioinIndia.Theprojectwhile workingat “Kadam
Group”includesadvisoryservicesi.e.educatingtheexistingand potentialinvestorsabout
stockmarket asanalternativesource toinvestment.Thisinvolves cateringtothequeriesof
theinvestorsabouttheconceptof stockmarket,thevariousoptions thatan investorcan
investhismoney into,fundsmanagementof investors.
Analyzingthe investors’behaviorincludesunderstandingtheconcernsa personhas
towardsStockMarket,hisstagesinlifeandwealthcycle,theeffectoftheinvestmentsmade by
thepeergroups,effectoftheprofessionhe/sheisin, educationqualification,importanceof
taxbenefits,themost preferredsavingtooletc.andthisallisanalyzedwiththehelpofa
scheduleprepared.

Understanding the significance of Derivatives market, types of instruments present in the

Indian Stock Market such as Futures, Options and Forwards. The various techniques used to
identify the trend of the market and analysing the scrip before investing.

Throughthesystematicinvestmentplaninvestaspecificamountforacontinuousperiod,
atregularintervals.Bydoingthis,theinvestorgettheadvantageofrupeecostaveraging
whichmeansthatbyinvestingthe sameamountat regularintervals,theaveragecost perunit
remainslower than theaveragemarketprice.

© MGM IOM/MBA STP-III SEM 2015 Page 1

 1.2 INTRODUCTION TO THE CONCEPT

Definition of Derivatives

One of the most significant events in the securities markets has been the development and
expansion of financial derivatives. The term “derivatives” is used to refer to financial
instruments which derive their value from some underlying assets.

The underlying assets could be equities (shares), debt (bonds, T-bills, and notes),
currencies, and even indices of these various assets, such as the Nifty 50 Index.

Derivatives derive their names from their respective underlying asset. Thus if a
derivative’s underlying asset is equity, it is called equity derivative and so on. Derivatives can be
traded either on a regulated exchange, such as the NSE or off the exchanges, i.e., directly
between the different parties, which is called “over-the-counter” (OTC) trading. (In India only
exchange traded equity derivatives are permitted under the law.)

The basic purpose of derivatives is to transfer the price risk (inherent in fluctuations of
the asset prices) from one party to another; they facilitate the allocation of risk to those who are
willing to take it. In so doing, derivatives help mitigate the risk arising from the future
uncertainty of prices.

For example, on November 1, 2009 a rice farmer may wish to sell his harvest at a future
date (say January 1, 2010) for a pre-determined fixed price to eliminate the risk of change in
prices by that date. Such a transaction is an example of a derivatives contract. The price of this
derivative is driven by the spot price of rice which is the "underlying".
 Origin of Derivatives

While trading in derivatives products has grown tremendously in recent times, the earliest
evidence of these types of instruments can be traced back to ancient Greece. Even though
derivatives have been in existence in some form or the other since ancient times, the advent of
modern day derivatives contracts is attributed to farmers’ need to protect themselves against a
decline in crop prices due to various economic and environmental factors.

Thus, derivatives contracts initially developed in commodities. The first “futures”

contracts can be traced to the Yodoya rice market in Osaka, Japan around 1650. The farmers
were afraid of rice prices falling in the future at the time of harvesting. To lock in a price (that is,
to sell the rice at a predetermined fixed price in the future), the farmers entered into contracts
with the buyers.

These were evidently standardized contracts, much like today’s futures contracts.
In 1848, the Chicago Board of Trade (CBOT) was established to facilitate trading of forward
contracts on various commodities. From then on, futures contracts on commodities have
remained more or less in the same form, as we know them today.

While the basics of derivatives are the same for all assets such as equities, bonds,
currencies, and commodities, we will focus on derivatives in the equity markets and all examples
that we discuss will use stocks and index (basket of stocks).
 Derivatives in India

In India, derivatives markets have been functioning since the nineteenth century, with
organized trading in cotton through the establishment of the Cotton Trade Association in
1875.Derivatives, as exchange traded financial instruments were introduced in India in June
2000.The National Stock Exchange (NSE) is the largest exchange in India in derivatives, trading
in various derivatives contracts. The first contract to be launched on NSE was the Nifty 50 index
futures contract. In a span of one and a half years after the introduction of index futures, index
options, stock options and stock futures were also introduced in the derivatives segment for
trading. NSE’s equity derivatives segment is called the Futures & Options Segment or F&O
Segment. NSE also trades in Currency and Interest Rate Futures contracts under a separate
segment.

A series of reforms in the financial markets paved way for the development of exchange-
traded equity derivatives markets in India. In 1993, the NSE was established as an electronic,
national exchange and it started operations in 1994. It improved the efficiency and transparency
of the stock markets by offering a fully automated screen-based trading system with real-time
price dissemination. A report on exchange traded derivatives, by the L.C. Gupta Committee, set
up by the Securities and Exchange Board of India (SEBI), recommended a phased introduction
of derivatives instruments with bi-level regulation (i.e., self-regulation by exchanges, with SEBI
providing the overall regulatory and supervisory role). Another report, by the J.R. Varma
Committee in 1998, worked out the various operational details such as margining and risk
management systems for these instruments. In 1999, the Securities Contracts (Regulation) Act of
1956, or SC(R)A, was amended so that derivatives could be declared as “securities”. This
allowed the regulatory framework for trading securities, to be extended to derivatives. The Act
considers derivatives on equities to be legal and valid, but only if they are traded on exchanges.
 Milestones in the development of Indian Derivative Market

November 18, 1996 L.C. Gupta Committee set up to draft a policy framework for
introducing derivatives

May 11, 1998 L.C. Gupta committee submits its report on the policy Framework

May 25, 2000 SEBI allows exchanges to trade in index futures

June 12, 2000 Trading on Nifty futures commences on the NSE

June 4, 2001 Trading for Nifty options commences on the NSE

July 2, 2001 Trading on Stock options commences on the NSE

November 9, 2001 Trading on Stock futures commences on the NSE

August 29, 2008 Currency derivatives trading commences on the NSE

August 31, 2009 Interest rate derivatives trading commences on the NSE

February 2010 Launch of Currency Futures on additional currency pairs

October 28, 2010 Introduction of European style Stock Options

October 29, 2010 Introduction of Currency Options

 Two important terms

Before discussing derivatives, it would be useful to be familiar with two terminologies

relating to the underlying markets. These are as follows:

Spot Market
In the context of securities, the spot market or cash market is a securities market in which
securities are sold for cash and delivered immediately. The delivery happens after the
settlement period. Let us describe this in the context of India. The NSE’s cash market segment is
known as the Capital Market (CM) Segment. In this market, shares of SBI, Reliance, Infosys,
ICICI Bank, and other public listed companies are traded.
The settlement period in this market is on a T+2 basis i.e., the buyer of the shares
receives the shares two working days after trade date and the seller of the shares receives the
money two working days after the trade date.

Index
Stock prices fluctuate continuously during any given period. Prices of some stocks might
move up while that of others may move down. In such a situation, what can we say about the
stock market as a whole? Has the market moved up or has it moved down during a given period?
Similarly, have stocks of a particular sector moved up or down?
To identify the general trend in the market (or any given sector of the market such as
banking), it is important to have a reference barometer which can be monitored. Market
participants use various indices for this purpose. An index is a basket of identified stocks, and its
value is computed by taking the weighted average of the prices of the constituent stocks of the
index.
A market index for example consists of a group of top stocks traded in the market and its
value changes as the prices of its constituent stocks change. In India, Nifty Index is the most
popular stock index and it is based on the top 50 stocks traded in the market. Just as derivatives
on stocks are called stock derivatives, derivatives on indices such as Nifty are called index
derivatives.
 Definitions of Basic Derivatives

There are various types of derivatives traded on exchanges across the world. They range
from the very simple to the most complex products. The following are the three basic forms of
derivatives, which are the building blocks for many complex derivatives instruments (the latter
are beyond the scope of this book):
 Forwards
 Futures
 Options

Knowledge of these instruments is necessary in order to understand the basics of

derivatives. We shall now discuss each of them in detail.

Forwards

A forward contract or simply aforward is a contract between two parties to buy or sell an
asset at a certain future date for a certain price that is pre-decided on the date of the contract. The
future date is referred to as expiry date and the pre-decided price is referred to as Forward Price.
It may be noted that Forwards are private contracts and their terms are determined by the parties
involved.

A forward is thus an agreement between two parties in which one party, the buyer, enters
into an agreement with the other party, the seller that he would buy from the seller an underlying
asset on the expiry date at the forward price. Therefore, it is a commitment by both the parties to
engage in a transaction at a later date with the price set in advance.

This is different from a spot market contract, which involves immediate payment and
immediate transfer of asset. The party that agrees to buy the asset on a future date is referred to
as a long investor and is said to have a long position.
 Similarly the party that agrees to sell the asset in a future date is referred to as a short
investor and is said to have a short position. The price agreed upon is called the delivery price or
the Forward Price.

Forward contracts are traded only in Over the Counter (OTC) market and not in stock
exchanges. OTC market is a private market where individuals/institutions can trade through
negotiations on a one to one basis.

Futures

Like a forward contract, a futures contract is an agreement between two parties in which
the buyer agrees to buy an underlying asset from the seller, at a future date at a price that is
agreed upon today.

However, unlike a forward contract, a futures contract is not a private transaction but gets
traded on a recognized stock exchange. In addition, a futures contract is standardized by the
exchange. All the terms, other than the price, are set by the stock exchange (rather than by
individual parties as in the case of a forward contract).

Also, both buyer and seller of the futures contracts are protected against the counter party
risk by an entity called the Clearing Corporation.

The Clearing Corporation provides this guarantee to ensure that the buyer or the seller of
a futures contract does not suffer as a result of the counter party defaulting on its obligation.

In case one of the parties defaults, the Clearing Corporation steps in to fulfill the
obligation of this party, so that the other party does not suffer due to non-fulfillment of the
contract.
 To be able to guarantee the fulfillment of the obligations under the contract, the Clearing
Corporation holds an amount as a security from both the parties. This amount is called the
Margin money and can be in the form of cash or other financial assets.

Also, since the futures contracts are traded on the stock exchanges, the parties have the
flexibility of closing out the contract prior to the maturity by squaring off the transactions in the
market.

The basic flow of a transaction between three parties, namely Buyer, Seller and Clearing
Corporation is depicted in the diagram below:
Options

Like forwards and futures, options are derivative instruments that provide the opportunity
to buy or sell an underlying asset on a future date.

An option is a derivative contract between a buyer and a seller, where one party (say First
Party) gives to the other (say Second Party) the right, but not the obligation, to buy from (or sell
to) the First Party the underlying asset on or before a specific day at an agreed-upon price. In
return for granting the option, the party granting the option collects a payment from the other
party. This payment collected is called the “premium” or price of the option.

The right to buy or sell is held by the “option buyer” (also called the option holder); the
party granting the right is the “option seller” or “option writer”. Unlike forwards and futures
contracts, options require a cash payment (called the premium) upfront from the option buyer to
the option seller. This payment is called option premium or option price. Options can be traded
either on the stock exchange or in over the counter (OTC) markets. Options traded on the
exchanges are backed by the Clearing Corporation thereby minimizing the risk arising due to
default by the counter parties involved. Options traded in the OTC market however are not
backed by the Clearing Corporation.

There are two types of options—call options and put options—which are explained
below.

Call option
A call option is an option granting the right to the buyer of the option to buy the
underlying asset on a specific day at an agreed upon price, but not the obligation to do so. It is
the seller who grants this right to the buyer of the option. It may be noted that the person who has
the right to buy the underlying asset is known as the “buyer of the call option”.
 The price at which the buyer has the right to buy the asset is agreed upon at the time of
entering the contract. This price is known as the strike price of the contract (call option strike
price in this case).

Since the buyer of the call option has the right (but no obligation) to buy the underlying
asset, he will exercise his right to buy the underlying asset if and only if the price of the
underlying asset in the market is more than the strike price on or before the expiry date of the
contract. The buyer of the call option does not have an obligation to buy if he does not want to.

Put option

A put option is a contract granting the right to the buyer of the option to sell the
underlying asset on or before a specific day at an agreed upon price, but not the obligation to do
so. It is the seller who grants this right to the buyer of the option.

The person who has the right to sell the underlying asset is known as the “buyer of the
put option”. The price at which the buyer has the right to sell the asset is agreed upon at the time
of entering the contract. This price is known as the strike price of the contract (put option strike
price in this case).

Since the buyer of the put option has the right (but not the obligation) to sell the
underlying asset, he will exercise his right to sell the underlying asset if and only if the price of
the underlying asset in the market is less than the strike price on or before the expiry date of the
contract. The buyer of the put option does not have the obligation to sell if he does not want to.
 Terminology of Derivatives
Spot price (ST)
Spot price of an underlying asset is the price that is quoted for immediate delivery of the
asset.
For example, at the NSE, the spot price of Reliance Ltd. at any given time is the price at
which Reliance Ltd. shares are being traded at that time in the Cash Market Segment of the NSE.
Spot price is also referred to as cash price sometimes.

Forward price or futures price (F)

Forward price or futures price is the price that is agreed upon at the date of the contract
for the delivery of an asset at a specific future date. These prices are dependent on the spot price,
the prevailing interest rate and the expiry date of the contract.

Strike price (K)

The price at which t he buyer of an option can buy the stock (in the case of a call option)
or sell the stock (in the case of a put option) on or before the expiry date of option contracts is
called strike price. It is the price at which the stock will be bought or sold when the option is
exercised. Strike price is used in the case of options only; it is not used for futures or forwards.

Expiration date (T)

In the case of Futures, Forwards, Index and Stock Options, Expiration Date is the date on
which settlement takes place. It is also called the final settlement date.

Types of Options
Options can be divided into two different categories depending upon the primary exercise
styles associated with options. These categories are:

European Options: European options are options that can be exercised only on the expiration
date.
American options: American options are options that can be exercised on any day on or before
the expiry date. They can be exercised by the buyer on any day on or before the final settlement
date or the expiry date.

Contract size
As futures and options are standardized contracts traded on an exchange, they have a
fixed contract size. One contract of a derivatives instrument represents a certain number of
shares of the underlying asset. For example, if one contract of BHEL consists of 300 shares of
BHEL, then if one buys one futures contract of BHEL, then for every Re 1 increase in BHEL’s
futures price, the buyer will make a profit of 300 X 1 = Rs 300 and for every Re 1 fall in BHEL’s
futures price, he will lose Rs 300.

Contract Value
Contract value is notional value of the transaction in case one contract is bought or sold.
It is the contract size multiplied but the price of the futures. Contract value is used to calculate
margins etc. for contracts. In the example above if BHEL futures are trading at Rs. 2000 the
contract value would be Rs. 2000 x 300 = Rs. 6 lacs.

Margins
In the spot market, the buyer of a stock has to pay the entire transaction amount (for
purchasing the stock) to the seller. For example, if Infosys is trading at Rs. 2000 a share and
an investor wants to buy 100 Infosys shares, then he has to pay Rs. 2000 X 100 = Rs.
2,00,000 to the seller. The settlement will take place on T+2 basis; that is, two days after the
transaction date. In a derivatives contract, a person enters into a trade today (buy or sell) but the
settlement happens on a future date. Because of this, there is a high possibility of default by any
of the parties.

Futures and option contracts are traded through exchanges and the counter party risk is
taken care of by the clearing corporation. In order to prevent any of the parties from defaulting
on his trade commitment, the clearing corporation levies a margin on the buyer as well as seller
of the futures and option contracts. This margin is a percentage (approximately 20%) of the total
contract value. Thus, for the aforementioned example, if a person wants to buy 100 Infosys
futures, then he will have to pay 20% of the contract value of Rs 2,00,000 = Rs 40,000 as a
margin to the clearing corporation. This margin is applicable to both, the buyer and the seller of a
futures contract.

Moneyness of an Option
“Moneyness” of an option indicates whether an option is worth exercising or not i.e. if
the option is exercised by the buyer of the option whether he will receive money or not.

“Moneyness” of an option at any given time depends on where the spot price of the
underlying is at that point of time relative to the strike price. The premium paid is not taken into
consideration while calculating moneyness of an Option, since the premium once paid is a sunk
cost and the profitability from exercising the option does not depend on the size of the
premium. Therefore, the decision (of the buyer of the option) whether to exercise the option or
not is not affected by the size of the premium. The following three terms are used to define the
moneyness of an option.

In-the-money option
An option is said to be in-the-money if on exercising the option, it would produce a cash
inflow for the buyer. Thus, Call Options are in-the-money when the value of spot price of the
underlying exceeds the strike price. On the other hand, Put Options are in-the- money when the
spot price of the underlying is lower than the strike price. Moneyness of an option should not be
confused with the profit and loss arising from holding an option contract. It should be noted that
while moneyness of an option does not depend on the premium paid, profit/loss do. Thus a
holder of an in-the-money option need not always make profit as the profitability also depends
on the premium paid.

Out-of-the-money option
An out-of-the-money option is an opposite of an in-the-money option. An option-holder
will not exercise the option when it is out-of-the-money. A Call option is out-of-the-money when
its strike price is greater than the spot price of the underlying and a Put option is out-of-the
money when the spot price of the underlying is greater than the option’s strike price.

At-the-money option
An at-the-money-option is one in which the spot price of the underlying is equal to the strike
price. It is at the stage where with any movement in the spot price of the underlying, the option
will either become in-the-money or out-of-the-money.

Participants in the Derivatives Market

As equity markets developed, different categories of investors started participating in the

market. In India, equity market participants currently include retail investors, corporate investors,
mutual funds, banks, foreign institutional investors etc. Each of these investor categories uses the
derivatives market to as a part of risk management, investment strategy or speculation. Based on
the applications that derivatives are put to, these investors can be broadly classified into three
groups:
· Hedgers
· Speculators, and
· Arbitrageurs

Hedgers
These investors have a position (i.e., have bought stocks) in the underlying market but are
worried about a potential loss arising out of a change in the asset price in the future. Hedgers
participate in the derivatives market to lock the prices at which they will be able to transact in the
future. Thus, they try to avoid price risk through holding a position in the derivatives market.
Different hedgers take different positions in the derivatives market based on their exposure in the
underlying market. A hedger normally takes an opposite position in the derivatives market to
what he has in the underlying market.
Speculators
A Speculator is one who bets on the derivatives market based on his views on the
potential movement of the underlying stock price. Speculators take large, calculated risks as they
trade based on anticipated future price movements. They hope to make quick, large gains; but
may not always be successful. They normally have shorter holding time for their positions as
compared to hedgers. If the price of the underlying moves as per their expectation they can make
large profits. However, if the price moves in the opposite direction of their assessment, the losses
can also be enormous.

Arbitrageurs
Arbitrageurs attempt to profit from pricing inefficiencies in the market by making
simultaneous trades that offset each other and capture a risk-free profit. An arbitrageur may also
seek to make profit in case there is price discrepancy between the stock price in the cash and the
derivatives markets.

Uses of Derivatives

Risk management
The most important purpose of the derivatives market is risk management. Risk
management for an investor comprises of the following three processes:
 Identifying the desired level of risk that the investor is willing to take on his investments;
 Identifying and measuring the actual level of risk that the investor is carrying; and
 Making arrangements which may include trading (buying/selling) of derivatives contracts
that allow him to match the actual and desired levels of risk.

Market efficiency
Efficient markets are fair and competitive and do not allow an investor to make risk free
profits. Derivatives assist in improving the efficiency of the markets, by providing a self-
correcting mechanism. Arbitrageurs are one section of market participants who trade whenever
there is an opportunity to make risk free profits till the opportunity ceases to exist. Risk free
profits are not easy to make in more efficient markets. When trading occurs, there is a possibility
that some amount of mispricing might occur in the markets. The arbitrageurs step in to take
advantage of this mispricing by buying from the cheaper market and selling in the higher market.
Their actions quickly narrow the prices and thereby reducing the inefficiencies.

Price discovery
One of the primary functions of derivatives markets is price discovery. They provide
valuable information about the prices and expected price fluctuations of the underlying assets in
two ways:

First, many of these assets are traded in markets in different geographical locations.
Because of this, assets may be traded at different prices in different markets. In derivatives
markets, the price of the contract often serves as a proxy for the price of the underlying asset. For
example, gold may trade at different prices in Mumbai and Delhi but a derivatives contract on
gold would have one value and so traders in Mumbai and Delhi can validate the prices of spot
markets in their respective location to see if it is cheap or expensive and trade accordingly.

Second, the prices of the futures contracts serve as prices that can be used to get a sense
of the market expectation of future prices. For example, say there is a company that produces
sugar and expects that the production of sugar will take two months from today. As sugar prices
fluctuate daily, the company does not know if after two months the price of sugar will be higher
or lower than it is today. How does it predict where the price of sugar will be in future? It can do
this by monitoring prices of derivatives contract on sugar (say a Sugar Forward contract). If the
forward price of sugar is trading higher than the spot price that means that the market is
expecting the sugar spot price to go up in future. If there were no derivatives price, it would have
to wait for two months before knowing the market price of sugar on that day. Based on
derivatives price the management of the sugar company can make strategic and tactical decisions
of how much sugar to produce and when.
 Settlement of Derivatives

Settlement refers to the process through which trades are cleared by the payment/receipt
of currency, securities or cash flows on periodic payment dates and on the date of the final
settlement. The settlement process is somewhat elaborate for derivatives instruments which are
exchange traded. (They have been very briefly outlined here. For a more detailed explanation,
please refer to NCFM Derivatives Markets (Dealers) Module). The settlement process for
exchange traded derivatives is standardized and a certain set of procedures exist which take care
of the counterparty risk posed by these instruments. At the NSE, the National Securities Clearing
Corporation Limited (NSCCL) undertakes the clearing and settlement of all trades executed on
the F&O segment of NSE. It also acts as a legal counterparty to all trades on the F&O segment
and guarantees their financial settlement. There are two clearing entities in the settlement
process: Clearing Members and Clearing Banks.

Clearing members

A Clearing member (CM) is the member of the clearing corporation i.e., NSCCL. These are the
members who have the authority to clear the trades executed in the F&O segment in the
exchange. There are three types of clearing members with different set of functions:
1) Self-clearing Members: Members who clear and settle trades executed by them only on their
own accounts or on account of their clients.
2) Trading cum Clearing Members: They clear and settle their own trades as well as trades of
other trading members (TM).
3) Professional Clearing Members (PCM): They only clear and settle trades of others but do
not trade themselves. PCMs are typically Financial Institutions or Banks who are admitted by the
Clearing Corporation as members.

Clearing banks
Some commercial banks have been designated by the NSCCL as Clearing Banks.
Financial settlement can take place only through Clearing Banks. All the clearing members are
required to open a separate bank account with an NSCCL designated clearing bank for the F&O
segment. The clearing members keep a margin amount in these bank accounts.

Settlement of Futures
When two parties trade a futures contract, both have to deposit margin money which is
called the initial margin. Futures contracts have two types of settlement: (i) the mark-to-market
(MTM) settlement which happens on a continuous basis at the end of each day, and (ii) the final
settlement which happens on the last trading day of the futures contract i.e., the last Thursday of
the expiry month.

Mark to market settlement

To cover for the risk of default by the counterparty for the clearing corporation, the
futures contracts are marked-to-market on a daily basis by the exchange. Mark to market
settlement is the process of adjusting the margin balance in a futures account each day for the
change in the value of the contract from the previous day, based on the daily settlement price of
the futures contracts (Please refer to the Tables given below.). This process helps the clearing
corporation in managing the counterparty risk of the future contracts by requiring the party
incurring a loss due to adverse price movements to part with the loss amount on a daily basis.
Simply put, the party in the loss position pays the clearing corporation the margin money to
cover for the shortfall in cash. In extraordinary times, the Exchange can require a mark to market
more frequently (than daily). To ensure a fair mark-to-market process, the clearing corporation
computes and declares the official price for determining daily gains and losses. This price is
called the “settlement price” and represents the closing price of the futures contract. The closing
price for any contract of any given day is the weighted average trading price of the contract in
the last half hour of trading.

Final settlement for futures

After the close of trading hours on the expiry day of the futures contracts, NSCCL marks
all positions of clearing members to the final settlement price and the resulting profit/loss is
settled in cash. Final settlement loss is debited and final settlement profit is credited to the
relevant clearing bank accounts on the day following the expiry date of the contract. Suppose the
above contract closes on day 6 (that is, it expires) at a price of Rs. 1040, then on the day of
expiry, Rs. 100 would be debited from the seller (short position holder) and would be transferred
to the buyer (long position holder).

Settlement of Options
In an options trade, the buyer of the option pays the option price or the option premium.
The options seller has to deposit an initial margin with the clearing member as he is exposed to
unlimited losses. There are basically two types of settlement in stock option contracts: daily
premium settlement and final exercise settlement. Options being European style, they cannot be
exercised before expiry.

Daily premium settlement

Buyer of an option is obligated to pay the premium towards the options purchased by
him. Similarly, the seller of an option is entitled to receive the premium for the options sold by
him. The same person may sell some contracts and buy some contracts as well. The premium
payable and the premium receivable are netted to compute the net premium payable or receivable
for each client for each options contract at the time of settlement.

Exercise settlement
Normally most option buyers and sellers close out their option positions by an offsetting
closing transaction but a better understanding of the exercise settlement process can help in
making better judgment in this regard. Stock and index options can be exercised only at the end
of the contract.

Final Exercise Settlement

On the day of expiry, all in the money options are exercised by default. An investor who
has a long position in an in-the-money option on the expiry date will receive the exercise
settlement value which is the difference between the settlement price and the strike price.
Similarly, an investor who has a short position in an in-the-money option will have to pay the
exercise settlement value.
 1.3 OBJECTIVES OF THE PROJECT STUDY

 To find out the kinds of risk perceive by investors while investing in Derivatives.

 To assess the investors purpose of investing in Derivatives Market.

 To Study the investors participation in different type of Derivative Instrument.

 To analyse the result of investment in Derivatives Market.

 2 PROFILE
2.1 INDUSTRY PROFILE

2.1.1 HISTORY OF STOCK BROKING IN INDIA

• During the 11th century-French began regulating and trading agricultural debts on behalf of the
banking community, creating the first brokerage system.

• In 1602-Dutch East India Company became the first publicly traded company.

• In 1801- London Stock Exchange .

The Indian Securities market has become one of the most dynamic and efficient securities market
in Asia today.

During the latter half of the 19th century shares of companies used to be traded in India
occasionally.

A small group of stock brokers in Bombay joined together in 1875 to form an association
called Native Share and StockbrokersAssociation. The association drew up codes of conduct
for brokerage business and mobilised private funds for investment in the corporate sector. It was
with this association which later become the Bombay Stock Exchange Which is oldest stock
exchange in Asia. this exchange is now known as the stock Exchange , Mumbai or BSE.

In 1894 the brokers of Ahmadabad formed Ahmadabad Share and stock brokers Association
which later become Ahmadabad Stock exchange. the Second stock Exchange of country.

During the 1900s kolkata become another major center of share trading on account of the starting
of several indigenous industrial enterprises. A result the third stock exchange of the country was
started by kolkata stock brokers at 1908.

Yet Another Stock Exchange was started in 1920 at Chennai. How ever , by 1923, it ceased to
exist . Later , in 1937 the Madras stock exchange was revived as many new cotton textile mills
and plantation companies were floated in South India.

Three more stock Exchange were established before independence

At Indore in Madhya Pradesh in 1930, at Hyderabad in 1943 and at Delhi in 1947 thus at the
time of independence Seven stock exchanges were functioning in the major cities of the country.
The number of stock exchange virtually remained unchanged for nearly three decades from 1947
to 1977, except for the establishment of the Bangalore Stock Exchange in 1957.
During the 1980s however many stock exchange were established. Some of them were:

1. Cochin Stock Exchange (1978)

2. Uttar Pradesh Stock Exchange (at Kanpur 1982)
3. Pune Stock Exchange (1982 )
4. Ludhiana Stock Exchange (1983)
5. Gauhati Stock Exchange (1984)
6. Kanara Stock Exchange (At Mangalore 1985)
7. Magadh Stock Exchange (At Patna 1986 )
8. Jaipur Stock Exchange ( 1989)
9. Bhubaneswar Stock Exchange (1989 )
10. Saurashtra Kutch Stock Exchange ( at Rajkot 1989 )
11. Vadodara Stock Exchange (at Baroda1990 )

Thus , from seven stock exchanges in 1947, the number of stock exchanges in the country
increased to Eighteen by 1990. Along with the increase in the number of stock exchanges, the
number of listed companies and the capital of the listed companies has also grown, especially
after 1985. Two more stock exchanges were set up at Coimbatore and Meerut during the 1990s
Taking the total to Twenty.

2.1.2 GROWTH OF STOCK BROKING IN INDIA

The stock market woke up from its long hibernation in 2014, with the Sensex rallying 30 percent
during the year. If not for the market correction in the last two months, Indian bourses would
have been the best performers in the world.
The recovery was solely due to the optimism generated by Prime Minister Narendra Modi, with
FII investment in Indian equity crossing $16 billion.
But Modi confronted opposition in the Rajya Sabha, where the BJP-led coalition is in minority.
Lack of support from opposition parties stopped bills from being passed. However, the
government introduced ordinances (decrees) in respect of coal and insurance – the first to get
industry going and the second to create an environment for reform and attract foreign
investment. The government also made amendments to the Land Acquisition Act through an
ordinance, which is yet to receive the president’s approval.
The market now believes that the prime minister means business. Finance Minister Arun Jaitley
has also indicated that the next budget to be presented in February will adopt a tax system which
is globally compatible, adds clarity to the tax liability and is in tune with internationally
comparable tax levels. The budget has raised expectations and will be an important trigger for
the market.
But there can be disruptions. The rate of interest, which is a prime consideration with the market,
is outside the ambit of the government. It is the exclusive domain of the RBI and, with inflation
targeting initiated by governor Raghuram Rajan, can take some time to be moderated.
There will also be external factors to contend with. First, world economic growth (except the
U.S.) is likely to drop, making exports a little difficult. Second, there is no certainty about the
international prices of crude oil. If prices rise again, energy importing countries like India will be
hit both in terms of inflation and current account deficit. Third, the U.S. Federal Reserve is
expected to increase interest rate which may reduce FII inflows into emerging market economies
and check rising equity prices. Fourth, there is always a possibility that monsoon will disappoint.
Even so, if the budget measures up to the indications given by the finance minister, it will be a
strong driver of the market. To sustain the bull market, the government will have to keep the
wheels of the reform process running, which is likely under Modi.
Most policy parameters appear to be very positive and corporate growth and profitability should
improve. With higher earnings per share and faster corporate growth, PEG (price/earnings to
growth ratio) will be lower, creating enough space for share prices to rise further. The Sensex
could possibly rise 20-25 percent in 2015.
The top 10 companies holding more than two thirds (66%) of the total terminals.

• Mumbai and Delhi account for the highest number of terminals with 26% and 15% share
respectively

• Around 11% of companies collectively have 19 subsidiaries in the overseas market.

• Around 74% agree about the need for a strong regulatory body for the broking industry.

• 24% of the companies have plans to raise capital over the next one year largely through private
placement and IPOs.

• Industry Gained momentum in terms of scope and scale.

• Competition in the broking space has intensified (increased very high) with entry of new firms

• Market experiencing rapid growth and financial integration gaining speed, the role of
intermediation will strengthen further

Western region has highest number of companies

• More than 50% companies, based in western India (Gujarat, Maharashtra and Dadra & Nagar
Haveli)

• City-wise, Mumbai leads the pack with 41% companies, followed by Delhi, Kolkata, Rajkot,
Bengaluru and Surat.
 2.1.3 NATIONAL AND INTERNATIONAL SCENARIO OF BROKING INDUSRY:

Introduction Capital market is the centre or arrangement that provides facilities for buying and
selling of long-term financial claims. It is the market where transactions are made in long term
securities such as stocks and bonds. The participants of this market includes various financial
institutions, mutual funds, agents, brokers, dealers and other borrowers and lenders of long term
debt and equity capital.

Capital market is not a compact unit but consists of two major parts:

Primary Market

Secondary market.

The primary market or otherwise called as new issue market is one in which long term capital is
raised by corporate directly from the public.

The secondary market or popularly called as the stock market refers to the market where these
long-term financial instruments which are already issued in the primary market are traded.

The initial emergence of stock markets in the world can be traced back over hundreds of years to
when industrialization and innovation took hold in Europe. The rapid economic growth in the
past one hundred years gave rise to the explosive development of stock markets.

At the same time the enhancement of stock markets has played an important role in promoting
the growth of the world 36 economy. The modern market economy depends to a greater extent
on a soundly operated stock market. Stock market provides liquidity to the financial instruments
which are issued in the primary market.

Players in the capital market are broadly divided in to three categories:

Companies issuing securities and includes new companies, existing

 unlisted companies and the existing listed companies. Intermediaries who assist in the
process of transferring savings into

 investment and they include merchant bankers, underwriters, registrars to issue and share
transfer agents, brokers, depositories, collecting agents, advertising agencies, agents, mutual
funds etc. Investors consisting of institutional investors and the general public.

Capital market consists of equity market as well as debt market.

 2.1.4 SOME PROMINENT COMPANIES IN THE INDUSTRY,THEIR
PERFORMANCE/CONTRIBUTION

These are the top brokerage companies in India:-

Indiabulls Securities

Indiabulls Securities is the leading brokerage firm in India, which started functioning in the year
2000. The company's businesses include real estates, home loans, power, securities and IT.
Indiabulls securities is headquartered in Gurgaon, Haryana and employes over 4,000 people.
Across the nation, Indiabulls securities operates through its 450 branches. The company provides
its services both through off-line and on-line channels. Indiabulls Securities boasts of running
one of the most efficient and fastest trading base in India. Rs. 1200 is the trade account opening
fees at Indiabulls Securities.

Sharekhan Limited

Sharekhan Limited was also established in 2000 and is one of the top brokerage firms in India
today. With its head office in Mumbai, Maharashtra, Sharekhan is present in around 450 cities in
India and it is serving over 9,50,000 customers through its 429 outlets across the country.
Sharekhan has two branches in Oman and UAE as well. The services provided by Sharekhan
Ltd. include equities trade execution, portfolio management, distribution of mutual funds and
commodities, structured products and insurance. One can open their trade account with
Sharekhan Ltd. with Rs. 750 (Classic account) and Rs. 1000 (Trade Tiger).
Angel Broking Limited

Angel Broking started its operations in 1987 and has its headquarters in Mumbai, the commercial
capital of India. Angel Broking is involved in the businesses such as equity trading, portfolio
management services, commodities, mutual funds, IPO, Life Insurance, Investment Advisory
and Depository Services. Angel Broking has more than 5,500 terminals in around 400 branches
across India.

Reliance Money

Reliance Money is retail brokerage company and a subsidiary of the prestigious Reliance
Industries. It was founded in 1987 and is based in Mumbai, Maharashtra. On a nationwide level,
Reliance Money runs its business through 150 brnaches and around 2,000 employees. Reliance
Money provides services related to mutual funds, fixed income, gold, portfolio management
services and structured products. Rs. 750 are charged by Reliance Money to open a Demat or a
trade account.

Kotak Securities Limited

With its headquarters in Mumbai, Kotak Securities Limited started its operations in 1994. It is
subsidiary of Kotak Mahindra Bank. Over 5.58 lakh customers have an account with Kotak
Securities. It has 450 branches in around 352 cities in India. The service base of Kotak Securities
consists of stock broking, portfolio management services and other customer oriented financial
services.
India Infoline Services

Like most of the other brokerage firms, India Infoline Services has its headquarters in Mumbai.
It was started in 1995 and serves more than 2 million customers. The company has around 650
locations in India and abroad. It is present in Sri Lanka, Mauritius, Singapore, Hong Kong,
Dubai, Switzerland, UK and USA. Rs. 750 is the amount required to open a demat account with
India Infoline Services.

HDFC Securities

HDFC Securities is based in Mumbai and over 1 million customers have an account with it. The
business services that HDFC Securities provides are mutual funds, equity, IPO, national pension
system, NRI offerings, insurance, fixed deposits, bonds and loans. HDFC Securities has over 100
branches in India and has got over 1,500 employees working for it.

ICICI Direct

ICICI Direct is a subsidiary of the leading private bank the ICICI Bank and is headquartered in
Mumbai, Maharashtra. It is involved in businesses such as equity, mutual funds, ETF, life
insurance, fixed deposit, bonds and loans. ICICI Direct has around 300 branches across the
country and over 2,000 employees. A trade account at the ICICI Direct can be opened with a fees
of Rs. 750.
Bajaj Capital

A relatively new player in the brokerage market, Bajaj Capital started in 2008 and is based in
Mumbai. It operated via 150 branches on pan India basis and a strong base of around 2,500
employees. It serves its customers through services related to mutual funds, fixed deposits,
bonds, insurance, real estate and stocks.

Aditya Birla Money

Aditya Birla Money is the brokerage arm of the Indian conglomerate the Aditya Birla Group. It
is headquartered in Mumbai, Maharashtra and has 150 branches across the nation. The business
solutions provided by Aditya Birla Money concern broking and distribution, wealth
management, corporate and treasury services, real estate advisory and online money
management. A total of 2,500 employees contribute to the operations of Aditya Birla Money.
 2.2 COMPANY PROFILE

CORPORATE OFFICE: Edelweiss House,Off. C.S.T. Road, Kalina, Mumbai, 400 098.
Tel:+91 22 2286 4400

COMPANY NAME: KADAM GROUP

ADDRESS: 10, first floor, Jyotirmay complex, near Atithi hotel,

Jalna Road, Aurangabad-431005.

CONTACT NO: 9764438888/7507014444.

EMAIL ID: [email protected]

WEBSITE: www.kadamgroups.co.in
2.2.1 Background of the company:

KADAM GROUP is formed by the MAHESH KADAM in 2005 at Aurangabad

(Maharashtra).Mahesh Kadam has completed M.com, MBA (finance), CFP, NCFM qualification

Capital market, derivatives market, commodity market, AMFI module, investment analysis and

NSDL- depository module. BCFM qualifications capital market and derivatives market and

IRDA.

KADAM GROUP is the collaboration of KADAM CAPITAL , Indian Institute of Financial

Planning and WealthGrow Investments

Kadam CAPITAL is the master franchise of SMC Global Securities Limited and Nirmal Bang
Secruties Private Limited

Kadam CAPITAL is also business partner of NJ’s Network.

Kadam capital provides training of all NCFM modules, NISM modules, stock market basic
course, commodity and derivative market, currency market and certified planner and recruitment
in financial sector like bank, mutual fund, insurance and broking firms.

Kadam financial services provides all types of loans like personal loan, home loan, car loan and
two wheeler loan.

2.2.2 Nature of the business carried:

KADAM GROUP is mainly a broking firm and partner of two well known trading firms. The
nature of business carried is serving its clients or investors by providing them the information of
current market situation and trading on behalf of the clients as per their request. Kadam group is
a service industry. The business carried is Finance & Investment, Broking, Commodities, Asset
Management.

2.2.3 Vision:

To be an innovative and renowned asset manager providing excellent investment solutions,

exemplary services and setting the highest ethical standards.
 Mission:

Our reputation and Image is more important than any financial reward. Reputation is hard to
build and even harder to rebuild. Reputation will be impacted by our ability to think for our
clients, maintain confidentiality and by our adherence to our value system.

2.2.4 Service profile:

The services offered by Kadam investments are:

 Demat A/c
 Equity market trading
 Currency market
 F&O market
 Bonds
 Commodity market
 Mutual funds
 Life insurance
 General insurance
 Portfolio management service
 Wealth management.

2.2.5 Area of operation: Regional (Aurangabad, Jalna, Ahmadnagar, Pune)

2.2.6 Organizational Structure:

Mr.Kadam is the head of the firm or owner of the firm there are some trainees working under
him and assistant of Mr.Kadam.
 Hierarchy of the company

Director (Retail)

(Aurangabad branch) (Indore Branch) (Kolhapur branch) (Nagpur Branch)

Branch manager Research Team

Dealer + marketing Relationship Manager Relationship Manager

Relationship Manager-2

Relationship Manager-3 Tele – caller -2

Dealer

Advisors

Tele – caller -2

Tele – caller-2

There are some other employees provided by the broking to the retail that is to the Kadam Group
those are as follows:

1. Research team
2. Back office
3. HR
4. Accountant

These are all in Mumbai and are in centralized team.

2.2.7 Ownership pattern: He is the sole and single proprietor of the firm.

2.2.8 Infrastructural Facility:

4 offices

PC’s

Furniture

Laptops

Scanners

Printers

2.2.9 Financial condition:

Year Net income(Rs)

2015-2015 27,67,560
2016-2017 38,90,980

2018-2019 34,92,450
2019-2020 51,30,230
2020-2021 98,97,960

Kadam Capital at Aurangabad

Brokerage ( Net Income) per month 6,50,000 -7,20,000

No. of Employees 21Employee on Salary Basis

& 4 Employees on Commission Basis
Franchisees 8
Major Clients 3284
Branches 5
Aurangabad,Kolhapur,Nagpur, Indore &
Ahmednagar
 2.2.10 Achievevement Awards:

• 2011- Best Mutual Fund Award (Reliance AMC)

• 2011- Best Retail Broker Award (Edelweiss)
• 2012- Best Broker Award in Options and Futures Segment (BMA Wealth creator ltd.)
• 2013- Best Mutual Fund Award (Birla)
• 2014- Best Currency Award (JK Security Pvt ltd.)
• 2016- Best Account Opening from SMC Global Limited
• 2019- Best Franchise Award from SMC Global Limited
• 2020- SIP Contest winner in Aurangabad Branch – 1st Position
 3. LITERATURE REVIEW

Dr Premalata (2003)examines the impact of introducing index futures and options

contracts on the volatility of the underlining stock index in India. The results suggest that futures
and options trading have not led to a change in the volatility of the underlying stock index.
Susan Thomas and Ajay Shah (2003)examine the characteristics, growth in liquidity and
turnover of Futures and Options.

Snehal Bandwadekar and Saurabh Ghosh (2003) identify that derivative products like
futures and options on Indian Stock Market have become important instruments of price
discovery, portfolio diversification and risk hedging in recent times. Ashutosh Vashishtha
(2010) examines that derivative turnover has grown from 2365 crores in 2000-01 to Rs
11010482 crores, within a short span of eight years derivative trading in India has surpassed cash
segment in terms of volume and turnovers.

O.P Gupta(2004) study suggest that the overall volatility of the stock market has
declined after the introduction of the index futures for both Nifty and Sensex indices, However
there is no conclusive evidence. Sandeep Srivastava (2005) uses the call and put option open
interest and volume based predictors as given by Bhuyan and Yan (2002). The results show that
these predictors have significant explanatory power with open interest being more significant as
compared to trading volume.

Golaka C Nath (2005) studies the behaviour of volatility in cash market after the
introduction of derivatives.Rajendra P. Chitale (2003) examines issues and impediments in the
use of different types of derivatives available for use by these institutional investors in India.
Sumon Bhaumik and Suchismita Bose (2007) examines the impact of expiration of
derivatives contracts on the underlying cash market on trading volumes, returns and volatility of
returns.

4. RESEARCH METHODOLOGY

Data Collection Method

 Primary Data
 Secondary Data

Primary Data
Primary data was collected through a structured questionnaire. The Questionnaire was
distributed through online platform by E-mail.
A questionnaire is used as a tool for the systematic collection of relevantinformation.

A well questionnaire consisting of simple questions has been prepared & directed to the
respondents.

The questionnaire prepared consists of closed-ended questions which used- Multiple choice

The first section of questionnaire is prepared mainly for collecting the personalinformation about
the respondents.

The second section contains multiple choice questions. It is prepared to collect the
information about customer perception.

The close- ended questions are very easy to answer from the questionnaireresponded by the
respondents.

(Questionnaire is attached at the end of the projects)

Secondary Data
 UnderSecondarysources,information was collectedfrominternal&externalsources. I
madeuseof Internetand miscellaneoussources(such asbrochures,pamphlets)under external
sources.
Secondary data is also collected from the different websites and Books.

Sampling Size: 100

5.ANALYSIS AND INTERPRETATION OF DATA

1. TO FIND OUT THE KINDS OF RISK PERCEIVE BY INVESTORS WHILE

INVESTING IN DERIVATIVES:-

KINDS OF RISK NO. OF RESPONDENTS PERCENTAGE

UNCERTAINTY OF 43 43.0
RETURNS
SLUM IN MARKET 34 34.0

FEAR OF COMPANY WIND 9 9.0

UP
OTHERS 14 14.0

TOTAL 100 100.0

Interpretation: 43% of the respondents feel that Uncertainty of Returns is the major risk
they perceive while investing in Derivative Market, were as 34% of the respondents feel
Slump in Market and 9% of the respondents feel that fear of company windup is the risk they
perceive while investing in Derivatives.

2. TO ASSESS THE INVESTORS PURPOSE OF INVESTING IN DERIVATIVES

MARKET:-

PURPOSE NO. OF RESPONDENTS PERCENTAGE

TO HEDGE FUNDS 33 33.0

RISK CONTROL 29 29.0

STABLE INCOME 21 21.0

DIRECT INVESTMENT 17 17.0

TOTAL 100 100.0

Interpretation: 33% of the respondents invest in Derivatives to hedge funds, 29% of them
invest for risk control, 21% of the respondents for stable income and 17% invest as a direct
investment.

3. TO STUDY THE INVESTORS PARTICIPATION IN DIFFERENT TYPE OF

DERIVATIVE INSTRUMENT:-

OPTIONS NO. OF RESPONDENTS PERCENTAGE

INDEX FUTURES 16 16.0

INDEX OPTIONS 29 29.0

STOCK FUTURES 19 19.0

STOCK OPTIONS 24 24.0

CURRENCY FUTURES/ 12 12.0

OPTIONS
 TOTAL 100 100.0

Interpretation: From the above chart we find that 29% of the respondent would like to
participate in Index Options were as 24% of the respondents’ would like to invest in Stock
Options, Stock Futures and Index Futures attract 19 and 16% respectively and respondents liking
to invest in Currency Futures and Options are 12%.

4. TO ANALYSE THE RESULT OF INVESTMENT IN DERIVATIVES

MARKET:-

OPTIONS NO. OF RESPONDENTS PERCENTAGE

GREAT RESULTS 17 17.0
MODERATE BUT 50 50.0
ACCEPTABLE
DISAPPOINTED 33 33.0
TOTAL 100 100.0
Interpretation: 50% of the respondents are moderate about their results in investing in
Derivatives market, 17% of the respondents have great results and 33% of the respondents are
disappointed with their investment in Derivatives Market.
 6.1 FINDINGS

 84% of the respondents are Male and 16% of them are Female.

 Most of the investors who invest in derivatives market are graduate.

 Majority of the investors who invest in derivative market have a income of above
1,50,001 – 3,00,00/-

 46% of the respondents fall under the age category of 35 – 44 years

 Investors generally perceive uncertainty of returns type of risk while investing in

derivative market.
 Most of investor’s purpose of investing in derivative market is to hedge their funds.

 Most of investors participate in Index Options.

 From this survey we come to know that most of investors make a contract of 1 month
maturity period.

 Investors invest 1 -10 times a year in Derivatives Market.

 The result of investment in derivative market is generally moderate but acceptable.

CONCLUSION

1. I found that the Uncertainty of Returns this kind of risk perceive by most of the
investors i.e. 43% while investing in Derivatives.

2. I assessed the most of the investors i.e. 33% purpose of investing in Derivatives
Market is to Hedge the Funds.

3. I Studied that the most of the investors i.e. 29% participation in Index Options
Derivative Instrument.

4. I analysed that, according to most of the investors the result of investment in

Derivatives Market is Moderate but Acceptable.
 6.2 SUGGESTIONS

 Knowledge needs to be spread concerning the risk and return of derivative market.

 Investors should have knowledge of technical analysis. Derivatives trading is for a short
period of time Investors should analyse their script before making their trades.

 Investors’ portfolio should only consist of 15 – 20% Derivatives contracts or scripts. As

derivatives trading is very risky investors should have only a small portion of their
portfolio consisting of derivatives.

 SEBI should conduct seminars regarding the use of derivatives to educate individual
investors.
 As FII play a prominent role in Derivatives trading, an individual investor should keep
himself updated with various economic trends, government policies, company and
industry announcements.

BIBLIOGRAPHY

 Dr. Premalata Shenbagaraman“Do Futures and Options trading increase stock market
volatility?”

 Golaka C Nath “Behaviour of Stock Market Volatility after Derivatives”

 O.P. Gupta “Effect Of Introduction Of Index Futures On Stock Market Volatility:The

Indian Evidence”

 Rajendra P. Chitale “Use of Derivatives by India’s Institutional Investors:Issues and

Impediments”

 Sandeep Srivastava“Informational Content Of Trading Volume And Open Interest – An

Empirical Study Of Stock Option Market In India”

 Ajay Shah and Susan Thomas “The evolution of the securities markets in India in the
1990s”
 Snehal Bandivadekar and Saurabh Ghosh “Derivatives and Volatility on Indian Stock
Markets”

 Sumon Bhaumik and Suchismita Bose “Impact of Derivatives Trading on Emerging

Capital Markets: A Note on Expiration Day Effects in India”

 Susan Thomas and Ajay Shah “Equity derivatives in India: The state of the art”

 http://www.nseindia.com

 http://www.bseindia.com

 http://www.sebi.gov.in

 http://www.moneycontrol.com

 http://www.kadamgroup.co.in