Project report
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The document provides an overview of the Indian financial market and its components. It discusses the key segments that make up the Indian financial market including the capital market, money market, debt market, and the roles of regulatory bodies like SEBI. It also summarizes some popular short-term and long-term investment options available in India. Finally, it provides details about a specific financial services firm called Reliance Securities including its management team, products offered, and board of directors.
Project report
- 1. FUNDAMENTAL AND TECHNICAL ANALYSIS OF TOURISM & MEDIA 1 INDUSTRY PROFILE The Industry which is going to be covered under this project is Financial Industry. When talk about financial industry it cover many things. Financial market itself is very huge .Indian Financial market is mainly a bank based system. Investors generally prefer Bank to invest their surplus money. The capital market is at initial stages and developing at a faster speed. We will see in detail about the financial market what comes under this and how we can invest our money in this market. Financial Market Financial market facilitates a platform on which the providers of funds (investors/ lenders) can interact with the borrowers/users (business units) and transfer the funds to them as and when required. We know that, money always flows from surplus sector to deficit sector. That means persons having excess of money lend it to those who need money to fulfill their requirement. Similarly, in business sectors the surplus money flows from the investors or lenders to the businessmen for the purpose of production or sale of goods and services. So, we find two different groups, one who invest money or lend money and the others, who borrow or use the money. Now it’s a question that how these two groups meet and transact with each other. The financial markets act as a link between these two different groups. It facilitates this function by acting as an intermediary between the borrowers and lenders of money. Indian Financial Market The financial market in India at present is more advanced than many other sectors as it became organized as early as the 19th century with the securities exchanges in Mumbai, Ahmadabad and Kolkata. In the early 1960s, the number of securities exchanges in India became eight - including Mumbai, Ahmadabad and Kolkata. Apart from these three exchanges, there was the Madras, Kanpur, Delhi, Bangalore and Pune exchanges as well. Today there are 23 regional securities exchanges in India. The Indian stock markets till date have remained stagnant due to the rigid economic controls. It was only in 1991, after the liberalization process that the India securities market witnessed a flurry of IPOs serially. The market saw many new companies spanning across different industry segments and business began to flourish. The launch of the NSE (National Stock Exchange) and the in the mid 1990s helped in regulating a smooth and transparent form of securities trading. Indian Financial Market consists of the following markets: Capital market/Securities market o Primary Market o Secondary Market Money Market Debt Market Mayur Bhosale Sinhgad Institute of Business Management
- 2. FUNDAMENTAL AND TECHNICAL ANALYSIS OF TOURISM & MEDIA 2 Capital Market Capital market defined as market dealing in long-term funds. it constitutes all long-term borrowings from banks and financial institutions, borrowings from foreign markets and raising of capital by issue various securities such as shares debentures, bonds, etc. The market where securities are traded known as Securities market. It consists of two different segments namely primary and secondary market. The primary market deals with new or fresh issue of securities and is, therefore, also known as new issue market; whereas the secondary market provides a place for purchase and sale of existing securities and is often termed as stock market or stock exchange. Money Market It refers to the institutional arrangements facilitating borrowing and lending of short term funds. In money market funds can be borrowed for short period varying from a day, a weak, and a month or 3 to 6 month and against different types of instruments such Bill of Exchange, Banker acceptance, bonds etc .Players in money market are Government, Central bank, Commercial bank, Financial Institution and Corporate. Debt Market It facilitates borrowing and lending of long term funds by issuing bonds and debentures. In this market issuer agrees to pay interest and repay the borrowed amount after a specified period of time. Debt instruments may be of various kinds depending on the repayment: Bullet payment – instruments where the issuer agrees to repay the entire amount at the maturity date, i.e. lump sum payment is called bullet payment. Sinking fund payment – instruments where the issuer agrees to retire a specified portion of the debt each year is called sinking fund requirement. Amortization – instruments where there are scheduled principal repayments before maturity date are called amortizing instruments. Role of Regulatory Body As indicated earlier, the stock exchanges suffer from certain limitations and require strict Control over their activities in order to ensure safety in dealings. As part of economic reforms programme started in June 1991, the Government of India Initiated several capital market reforms, which included the abolition of the office of the Controller of Capital Issues (CCI) and granting statutory recognition to Securities Exchange Board of India (SEBI) in 1992 .Some of the Role of SEBI is as follows. (a) Protecting the interest of investors in securities (b) Promoting the development of securities market (c) Regulating the securities market (d) Registering and regulating the working of various intermediaries and mutual funds (e) Promoting investors education and training of intermediaries (f) Prohibiting insider trading and unfair trade practices (g) Regulating substantial acquisition of shares and takeover of companies Mayur Bhosale Sinhgad Institute of Business Management
- 3. FUNDAMENTAL AND TECHNICAL ANALYSIS OF TOURISM & MEDIA 3 (h) Calling for information, undertaking inspection, conducting inquiries and audit of stock Exchanges, and intermediaries and self regulation organizations in the stock market Investment Option Investment options are mainly divided in to two categories based on the time period Short-Term and Long –Term. Short-term investing 1. Savings bank account Use only for short-term (less than 30 days) surpluses 2. Money market funds Offer better returns than savings account without compromising liquidity 3. Bank fixed deposits For investors with low risk appetite, best for 6-12 months investment period Long-term investing 4. Post Office savings Low risk and no TDS 5. Public Provident Fund Best fixed-income investment for high tax payers 6. Company fixed deposits Option to maximize returns within a fixed-income portfolio 7. Bonds and debentures Option for large investments or to avail of some capital gains tax rebates 8. Mutual Funds Unless you rate high on our Investment IQ Test, use mutual funds as a vehicle to invest 9. Life Insurance Policies Life Insurance is part of investment but returns are less. 10. Equity shares Maximum returns over the long-term, invest funds you do not need for at least five years Source: http://www.moneycontrol.com/planning_desk/fininvoption.php Mayur Bhosale Sinhgad Institute of Business Management
- 4. FUNDAMENTAL AND TECHNICAL ANALYSIS OF TOURISM & MEDIA 4 In India there are number of firms which are offering financial and brokerage services. Big players such ICICI ,Reliance capital, kotak securities, Motilal Ostwal, Prabhudas liladhar, Karvy securities, Angel Broking and many more. The general products offered by these firms are as follows. 1) Online Trading 2) Derivative Trading 3) Commodities 4) Mutual Funds 5) IPO Distribution 6) Portfolio Management services 7) Margin funding (finance against shares & securities to meet fund requirements) 8) Currency Derivatives 9) Wealth Management Services Source:- http://www.plindia.com/equity-trading.aspx Mayur Bhosale Sinhgad Institute of Business Management
- 5. FUNDAMENTAL AND TECHNICAL ANALYSIS OF TOURISM & MEDIA 5 COMPANY PROFILE Reliance Securities Limited is a Reliance Capital company and part of the Reliance Group. Reliance Securities endeavors to change the way investors transact in equities markets and avail services. It provides customers with access to Equity, Derivatives, Portfolio Management Services Investment Banking, Mutual Funds and IPOs. It also offers secured online share trading platform an investment activities in a secure, cost effective and convenient manner. To enable wide participation, it also provides the convenience of trading offline through variety of means, including Call & Trade, Branch dealing Desk and its network of affiliates. Reliance Securities has a pan India presence at more than 1,700 locations. Reliance Capital is one of India's leading and fastest growing private sector financial service companies, and ranks among the top 3 private sector financial services and banking groups, in term of net worth. Management Team The following people are the pillars for reliance securities and it’s their effort that brought Reliance Securities to this level. It is their Innovative strategies that bring customer satisfaction level to high point. 1. Vikrant Gugnani - Executive director 2. Sanjay Wadhwa - Chief Financial Officer 3. Ganesh Pai - Head Compliance 4. Hitesh Agrawal - Head Research Promoters of the Company Reliance Securities is fully own by reliance capital. The promoters for reliance securities are same as that reliance capital .if we see the reliance capital share holding pattern 54.14 % are Indian Promoters. Institutions which include Mutual funds/UTI, FI/Bank/Insurance, Govt, FII holds 25.29 % and Non institution holds 20.37% share in the reliance Capital. Product offered by Reliance Securities 1. Equity 2. Derivatives 3. Portfolio Management Services 4. Investment Banking 5. Mutual Funds 6. IPOs 7. secured online share trading platform Source:- http://www.rsec.co.in/about-us Mayur Bhosale Sinhgad Institute of Business Management
- 6. FUNDAMENTAL AND TECHNICAL ANALYSIS OF TOURISM & MEDIA 6 Board of Directors Anil Dhirubhai Ambani - Chairman Shri Anil D. Ambani, regarded as one of the foremost corporate leaders of contemporary India, Shri Anil D. Ambani, is the Chairman of Reliance Capital Limited, Reliance Infrastructure Limited, Reliance Communications Limited and Reliance Power Limited. He is also on the Board of Reliance Infratel Limited and Reliance Anil Dhirubhai Ambani Group Limited. He is the President of the Dhirubhai Ambani Institute of Information and Communication Technology, Gandhinagar, Gujarat. An MBA from the Wharton School of the University of Pennsylvania, Shri Ambani is credited with pioneering several path-breaking financial innovations in the Indian capital markets. He spearheaded the country’s first forays into overseas capital markets with international public offerings of global depositary receipts, convertibles and bonds. Under his Chairmanship, the constituent companies of the Reliance Group have raised nearly US$ 7 billion from global financial markets in a period of less than 3 years. Shri Amitabh Jhunjhunwala, Vice-Chairman Shri Amitabh Jhunjhunwala, is a Fellow Chartered Accountant. He has had a wide exposure in developing, strategizing and overseeing businesses in financial services, power, telecommunication and entertainment sectors. Currently, he oversees and leads businesses in financial services and entertainment sectors of the Reliance group. He has experience in the areas of finance, commercial, banking, accounts and general management. Shri Jhunjhunwala is the Group Managing Director of Reliance Anil Dhirubhai Ambani Group. He is a Vice Chairman of Reliance Capital Ltd. Mayur Bhosale Sinhgad Institute of Business Management
- 7. FUNDAMENTAL AND TECHNICAL ANALYSIS OF TOURISM & MEDIA 7 Shri Rajendra Chitale Shri Rajendra P. Chitale, a law graduate and an eminent Chartered Accountant, is a Managing Partner of Chitale & Associates (India’s only boutique full service structuring and tax advisory firm) and M. P. Chitale & Co. (one of the India’s leading accounting and consulting firms). He is a member of the Insurance Advisory Committee of the Insurance and Regulatory Authority of India (IRDA), and has served as a member of the Company Law Advisory Committee, Government of India, the Takeover Panel of the Securities & Exchange Board of India, Investor Education & Protection Fund Committee, Government of India, the Advisory Committee on Regulations of the Competition Commission of India, and the Maharashtra Board for Restructuring of State Enterprises, Government of Maharashtra. He has served as a director on the boards of Life Insurance Corporation of India, Unit Trust of India, Small Industries Development Bank of India, National Stock Exchange of India Ltd., Asset Reconstruction Company (India) Ltd., SBI Capital Markets Ltd. Dr. Bidhubhusan Samal Dr. Bidhubhusan Samal, Master in Agriculture (Gold Medalist) and doctorate in Economics from Kalyani University, West Bengal. He is also a Post Graduate Diploma holder in Bank Management from the National Institute of Bank Management, Pune. He has more than 30 years of work experience in the field of Banking, Securities Markets and Industrial Finance. He has served as Chairman and Managing Director of Allahabad Bank, Chairman and Managing Director of Industrial Investment Bank of India and as Member of the Securities Appellate Tribunal. Presently, he is a member of the Task Force set up by the Ministry of Heavy Industries and Public Enterprises, Government of India and Employment Mission set up by the Government of Orissa. Shri V. N. Kaul Shri V. N. Kaul is a former Comptroller and Auditor General of India (2002 to 2008). He completed his Masters degree from the University of Delhi in 1964. He joined the Indian Administrative Service in 1965. After completion of his tenure as C&AG, he was elected by the UN General Assembly to the United Nations Independent Audit Advisory Committee in 2008 and served as Vice Chairman of the Committee up to January 2011. Prior to his appointment as C&AG Shri Kaul held senior positions in the Government and in the United Nations. Mayur Bhosale Sinhgad Institute of Business Management
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