INTRODUCTION OF CURRENCY DERIVATIVES

Each country has its own currency through which both national andinternationaltransactions are
performed.All the international business transactions involve an exchange of one currency for
another. For example, If any Indian firm borrows funds from international financial market in
US dollars for short or long term then at maturity the same would be refunded in particular
agreed currency along with accrued interest on borrowed money. It means that the borrowed
foreign currency brought in the country will be converted into Indian currency, and when
borrowed fund are paid to the lender then the home currency will be converted into foreign
lender’s currency.Thus, the currency units of a country involve an exchange of one currency
for another. The price of one currency in terms of other currency is known as exchange rate.

The foreign exchange markets of a country provide the mechanism of exchanging different
currencies with one and another, and thus, facilitating transfer of purchasing power from one
country to another. With the multiple growths of international trade and finance all over the
world, trading in foreign currencies has grown tremendously over the past several decades.
Since the exchange rates are continuously changing, so the firms are exposed to the risk of
exchange rate movements. As a result the assets or liability or cash flows of a firm which are
denominated in foreign currencies undergo a change in value over a period of time due to
variation in exchange rates.

This variability in the value of assets or liabilities or cash flows is referred to exchange rate
risk. Since the fixed exchange rate system has been fallen in the early 1970s, specifically in
developed countries, the currency risk has become substantial for many business firms. As a
result, these firms are increasingly turning to various risk hedging products like foreign
currency futures, foreign currency forwards, foreign currency options, and foreign currency
swaps.

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NEED FOR THE STUDY

 The present study to review the online trading procedure a case study of ONLINE
TRADING at ANGEL BROKING LTD., as the exchange has changed it’s trading
from it and there is need to assess the performance of the capital market.

 Maintaining good records requires discipline, just like good trading. Unfortunately,
many commodity traders don’t take the time to track their trading history, which can
offer a wealth of information to improve their odds of success Most professional
traders, and those who consistently make money from trading commodities, keep
diligent records of their trading activity. The same cannot be said for the masses that
consistently lose at trading commodities.

2
SCOPE OF THE STUDY

 ‘Investor can assess the company financial strength and factors that effect the
company. Scope of the study is limited. We can say that 70% of the analysis is proved
good for the investor, but the 30% depends upon market sentiment.

 The topic is selected to analyses the factors that affect the future EPS of a company
based on fundamentals of the company.

 The market standing of the company studied in the order to give a better scope to the
Analysis is helpful to the investors, shareholders, creditors for the rating of the
company.

3
OBJECTIVES OF THE STUDY

The basic idea behind undertaking Currency Derivatives project to gain knowledge about
currency future market.

 To study the basic concept of Currency future

 To study the exchange traded currency future

 To understand the practical considerations and ways of considering currency future

price.
 To analyze different currency derivatives products.

4
RESEARCH METHODOLOGY

 TYPE OF RESEARCH
In this project Descriptive research methodologieswereuse.The research methodology
adopted for carrying out the study was at the first stage theoretical study is attempted and at
the second stage observed online trading on NSE/BSE.

 SOURCE OF DATA COLLECTION

Secondary data were used such as various books, report submitted by RBI/SEBI committee
and NCFM/BCFM modules.

LIMITATION OF THE STUDY

 THELIMITATIONSOF THE STUDY WERE

The analysis was purely based on the secondary data. So, any error in the secondary data
might also affect the study undertaken.The currency future is new concept and topic related
book was not available in library and market.

5
TITLE:THE FUTURE OF STOCK MARKET
AUTHOR:LAVEENA
JOURNAL: ONLINE TRADING
VOLUME:
YEAR:2015

ABSTRACT:
The avenue of the internet is a convenient method for the public to carry out financial
transactions online and even faster than ever. Online trading over the stock market for the
consumer indulges all the platforms of banking, commerce, money and resultantly discovers
a ease to them. Online trading comes under the percept of E-commerce which has become a
greater tool of ease in the universe at this jiffy. In India, there are few companies to offer such
trading business. In fact, stock market business has expanded to such an extent which has
never happened before. This has become an imperative to the success to all the organizations
of online trading business worldwide. This research paper will concentrate on the future of
stock exchange through online trading and their Security rate of trading online

6
TITLE:PROSPECT THEORY FOR ONLINE FINANCIAL TRADING
AUTHOR:YANG-YU LIU
JOURNAL: ONLINE TRADING
VOLUME:
YEAR:2011

ABSTARCT:
Prospect theory is widely viewed as the best available descriptive model of how people
evaluate risk in experimental settings. According to prospect theory, people are typically risk-
averse with respect to gains and risk-seeking with respect to losses, known as the “reflection
effect”. People are much more sensitive to losses than to gains of the same magnitude, a
phenomenon called “loss aversion”. Despite of the fact that prospect theory has been well
developed in behavioral economics at the theoretical level, there exist very few large-scale
empirical studies and most of the previous studies have been undertaken with micro-panel
data. Here we analyze over 28.5 million trades made by 81.3 thousand traders of an online
financial trading community over 28 months, aiming to explore the large-scale empirical
aspect of prospect theory. By analyzing and comparing the behavior of winning and losing
trades and traders, we find clear evidence of the reflection effect and the loss aversion
phenomenon, which are essential in prospect theory. This work hence demonstrates an
unprecedented large-scale empirical evidence of prospect theory, which has immediate
implication in financial trading, e.g., developing new trading strategies by minimizing the
impact of the reflection effect and the loss aversion phenomenon. Moreover, we introduce
three novel behavioral metrics to differentiate winning and losing traders based on their
historical trading behavior. This offers us potential opportunities to augment online social
trading where traders are allowed to watch and follow the trading activities of others, by
predicting potential winners based on their historical trading behavior.

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TITLE:INSIDER TRADING
AUTHOR:GILBERT GEIS
JOURNAL: ONLINE TRADING
VOLUME:
YEAR:2011

ABSTRACT:
Utilitarianism is a general term for any view that holds that actions and policies should be
evaluated on the basis of the benefits and costs they will impose on society but in the respect
of Kant’s categorical imperative approach, intention is more important than result while we
behave in an action. The purpose of the study is to investigate the insider trading which is
about buying or selling of securities on the basis of material, non public information, with
these two theories as utilitarian principles and Kant’s approach from the perspectives of
Business Administration Students. The data was collected by different scenarios which reflect
the insider trading in the stock market. The results show that insider trading should be
analyzing according to the condition of this perspectives in order to find out that is ethical or
unethical.

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TITLE:PROBLEMS AND CHALLENGES
AUTHOR:SANJAY S
JOURNAL:ONLINE TRADING
VOLUME:
YEAR:2000

ABSTRACT:
Online trading is a practice that has exploded in growth and popularity. Currently, there are
approximately 150 brokerage firms offering online trading (Future Banker, 2000). Society’s
use of the Internet has changed the entire concept of securities trading. In fact, Minkoff
(2000) termed society=s use of online trading as "mainstream". In further support of this
notion, he went on to add that by the year 2005, it is predicted that 81 percent of the
households that own stocks will have an online account. Currently, 25 percent of the
households that own stocks have an online account. Another study estimated that by the year
2003 approximately 9.7 million American households will manage more than $3 trillion in
assets spread among some 20.4 million online accounts (Drummer, 1999). These are mind-
boggling statistics compared to just three years ago when electronic trading was regarded a
fad (Carroll, Lux, and Schack, 2000). Presently, in the U.S. one out of every six stock trades
occurs over the Internet (Kassenaar, 1999). In 1999 online brokerage firms raised $1.76
billion in capital markets due to approximately five million online investors (Economist,
1999, and Registered Representative, 1999). Despite all of its growth and popularity, online
investing possesses a host of problems and challenges for everyone involved. "You can make
money fast and lose it faster," concluded Drummer's (1999).

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TITLE:THE FUTURE OF STOCK MARKET
AUTHOR:SHIVALI JINDAL
JOURNAL:ONLINE TRADING
VOLUME:
YEAR:2007

ABSTRACT:
The avenue of the internetis a convenient method for the public to carry out financial
transactions online and even faster than ever. Online trading over the stock market for the
consumer indulges all the platforms of banking, commerce, money and resultantly discovers
a ease to them .Online trading comes under the percept of E-commerce which has become a
greater tool of ease in the universe at this jiffy . In India there are few companies to offer such
trading business. In fact, stock market business has expanded to such an extent which has
never happened before. This has become an imperative to the success to all the organizations
of online trading business worldwide. This research paper will concentrate on the future of
stock exchange through online trading and their Security rate of trading online.

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TITLE:JOURNAL OF GLOBAL TRADING
AUTHOR:H KENT BAKER
JOURNAL:ONLINE TRADING
VOLUME:
YEAR:2002

ABSTRACT:
We review the field of behavioural finance as it relates to investors. Specifically, we examine
common investment mistakes caused by an investor's cognitive and emotional weaknesses
and group these mistakes into two categories: how investors think and how investors feel.
Although most recent research deals with these psychological influences in investor decision-
making, we also discuss social factors that affect financial decisions. We suggest five steps
that investors can take to help overcome common investor mistakes. Finally, we present some
thoughts on further behavioural research involving investors.

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 COMPANY PROFILE
ANGEL BROKING LTD

Angel Booking’s tryst with excellence in customer relations began more than 20 years ago.
Angel Group has emerged as one of the top 10 retail broking houses in India and incorporated
in 1987. Today, Angel has emerged as a premium Indian stock-broking and wealth
management house, with an absolute focus on retail business and a commitment to provide
"Real Value for Money" to all its clients.

It has memberships on BSE, NSE and the leading commodity exchanges in India NCDEX &
MCX. Angel is also registered as a depository participant with CDSL.

Angel Group Companies

Member on the BSE and Depository Participant with

Angel Broking Ltd.
CDSL

Angel Capital & Debt Market Membership on the NSE Cash and Futures &
Ltd. Options Segment

Angel Commodities Broking Ltd. Member on the NCDEX & MCX

Angel Securities Ltd. Member on the BSE

 Incorporated :1987

 BSE Membership :1997

 NSE membership :1998

 Member of NCDEX and MCX

 Depository Participants with CDSL

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Angel’s presence
 Nation- wide network of 21 regional hubs

 Presence 124 cities

 6800 + sub brokers & business associates

 5.9 lakh +clients

Management

S.No Name Designation & Department

1. Mr. Dinesh Thakkar Founder Chairman & Managing Director
2. Mr. Lalit Thakkar Managing Director - Institutional broking
3. Mr. Amit Majumdar Chief Strategy Officer
4. Mr. Sachinn Joshi Executive Director & CFO
5. Mr. Vinay Agrawal Executive Director – Equity Broking
6. Mr. Nikhil Daxini Executive Director - Sales and Marketing
7. Mr. Santanu Syam Executive Director – Operations
Associate Director– Information Technology
8. Mr. Ketan Shah
and B2B Business
9. Mr. Naveen Mathur Associate Director – Commodities & Currencies

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Milestones

 October, 2013 Angel Broking bagged the Dun & Bradstreet Equity Broking Awards
2013 for'Best Retail Broking House' and 'Fastest Growing Equity Broking House'
(Large Firms) at Dun & Bradstreet Equity Broking Awards 2013.

 March, 2013Angel Broking was awarded with 'Best in Contribution Investor

Education & Category Enhancement of the year' and 'Best Commodity Research of
the year'.

 November, 2012Angel Broking bags the coveted ‘Major Volume Driver’ Award by
BSE for 2011-10

 October, 2011 Angel Broking bags the coveted ‘Major Volume Driver’ Award by
BSE for 2010-09

 May, 2011Angel Broking wins two prestigious awards for 'Broking House with
Largest Distribution Network' and 'Best Retail Broking House' at Dun & Bradstreet
Equity Broking Awards

 August, 2010 Crossed 500000 trading accounts

 November, 2009 ‘Major Volume Driver’ for 2009

 December, 2008 Created 2500 business associates

 October, 2008 ‘Major Volume Driver’ award for 2008

 September, 2008 Launched Mutual Fund and IPO business

 July, 2008 Launched the PMS function

 October, 2007 ‘Major Volume Driver’ award for 2007

 September, 2006 Launched Online Trading Platform

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  April, 2006 Initiated Commodities Broking division

 April, 2005 First published research report

 November, 2004 Angel’s first investor seminar

 March, 2004 Developed web-enabled back office software

 November, 1998 Angel Capital and Debt Market Ltd. Incorporated

 December, 1997 Angel Broking Ltd. Incorporated

Vision of the Company

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

Philosophy of the Company

Ethical practices & transparency in all our dealings customer interest above our own always
deliver what we promise effective cost management.

Quality Assurance Policy

We are committed to being the leader in providing World Class Product & Services which
exceed the expectations of our customers Achieved by teamwork and a process of continuous
improvement

CRM Policy
A Customer is the most important visitor on our premises. He is not dependent on us but we
are dependent on him. He is not interruption in our work, but is the Purpose of it. We are not
doing him a favour by serving. He is doing us a favour by giving us an opportunity to do so

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OUR ORGANIZATIONAL STRUCTURE

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LOGO OF THE COMPANY

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Products of Angel Broking
● Online Trading

● Commodities

● DP Services

● PMS (Portfolio Management Services)

● Insurance

● IPO Advisory

● Mutual Fund

● Personal loans

● Quality Assurance

E-Broking
Angle has different products and voila trading on BSC, NSC, F&O, MCX & NCDEX. It
provides four software to customers for online trading.

17
Angel Investor
 User-friendly browser for investors

 Easy online trading platform

 Works in proxy and firewall system set up

 Integrated Back office: Access account information – anytime, anywhere

 Streaming quotes

 Refresh static rates when required

 Multiple exchanges on single screen

 Online fund transfer facility

Angel Trade
 Browser based for investor
 No installation required
 Advantage of mobility
 Trading as simple as internet surfing
 BSC, NSC, F&O, MCX & NCDEX

Angel Diet
 Application based ideal for traders.
 Multiple exchanges on single screen
 Online fund transfer facility
 User friendly & simple navigation
 BSC, NSC, F&O, MCX & NCDEX

Angel Anywhere
 Application-based platform for day traders

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  Intra-day/historical charts with various indicators
 Online fund transfer facility
 BSC, NSC, Cash & Derivatives

Investment Advisory Services

To derive optimum returns from equity as an asset class requires professional guidance and
advice. Professional assistance will always be beneficial in wealth creation. Investment
decisions without expert advice would be like treating ailment without the help of a doctor.

Expert Advice: Their expert investment advisors are based at various branches across India
to provide assistance in designing and monitoring portfolios.

Timely Entry & Exit:Their advisors will regularly monitor customers’ investments and guide
customers to book timely profits. They will also guide them in adopting switching techniques from
one stock to another during various market conditions.

De-Risking Portfolio:Adiversified portfolio of stocks is always better than concentration in a

single stock.Based on their research, they diversify the portfolio in growth-oriented sectors and
stocks to minimize the risk and optimize the returns.

Commodities

19
commodity is a basic good representing a monetary value. Commodities are most often used
as inputs in the production of other goods or services. With the advent of new online
exchange, commodities can now be traded in futures markets. When they are traded on an
exchange, Commodities must also meet specified minimum standards known as basic grade.

Types of Commodities
● Precious Metals : Gold and Silver
● Base Metals : Copper, Zinc, Steel and Aluminum
● Energy : Crude Oil, Brent Crude and Natural Gas
● Pulses : Chana, Urad and Tur
● Spices : Black Pepper, Jeera, Turmeric , Red Chili
● Others : Guar Complex, Soy Complex, Wheat and Sugar

Benefits at Angel
● Three different online products tailored for traders & investors.
● Single Screen customized market-watch for MCX / NCDEX with BSE / NSE.
● Streaming Quotes and real time Rates. Intra-day trading calls.
● Research on 25 Agro Commodities, Precious and Base Metals, Energy products and
Polymers.
● An array of daily, weekly and special research reports.
● Active relationship management desk.
● Seminars, workshops and investment camps for investors

Depositary Participant Services

Angel Broking Ltd. is a DP services provider though CDSL. We offer depository services to
create a seamless transaction platform to execute trades through Angel group of companies
and settle these transactions through Angel Depository services.
● Wide branch coverage

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 ● Personalized/attentive services of trained a dedicated staff
● Centralized billing & accounting
● Acceptance & execution of instruction on fax
● Daily statement of transaction & holdings statement on e-mail
● No charges for extra transaction statement & holdings statement

Portfolio Management Services

Successful investing in Capital Markets demands ever more time and expertise. Investment
Management is an art and a science in itself. Portfolio Management Services (PMS) is one
such service that is fast gaining eminence as an investment avenue of choice for High Net
worth Investors (HNI). PMS is a sophisticated investment vehicle that offers a range of
specialized investment strategies to capitalize on opportunities in the market. The Portfolio
Management Service combined with competent fund management, dedicated research and
technology, ensures a rewarding experience for its clients.

Mutual Fund
To enable clients to diversify their investment in the right direction. Angel Broking has added
another product in its range with mutual funds.
● Access to in-depth research & proper selection from diversified funds based on your
preferred criteria
● Rating and rankings of all mutual funds from our in house expert analysts
● News and alert for your Mutual fund Portfolio and performance tracking with watch
lists
● Current and historical performance of different funds enabling comparisons

Benefits
● No risk of loss, wrong transfer, mutilation or theft of share certificates.
● Hassle free automated pay-in of your sell obligations by your clearing members
● Reduced paper work.

21
 ● Speedier settlement process. Because of faster transfer and registration of securities in
your account, increased liquidity of your securities.
● Instant disbursement of non-cash benefits like bonus and rights into your account.
● Efficient pledge mechanism.

FUNDAMENTAL SERVICES

The Sunday Weekly Report

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

Stock Analysis
Angel’s stock research has performed very well over the past few years and angel model
portfolio has consistently outperformed the benchmark indices. The fundamentals of select
scripts are thoroughly analyzed and actionable advice is provided along with investment
rationale for each scrip.

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Flash News
Key developments and significant news announcement that are likely to have an impact on
market / scripts are flashed live on trading terminals. Flash news keeps the market men
updated on an online basis and helps them to reshuffle their holdings

TECHNICAL SERVICES
For day trader’s angel provides intraday calls with entry, exit and stop loss levels during the
market hours and our calls are flashed on our terminals. Our analysts continuously track the
calls and provide the recommendations according to the market movements.

Posting Trading Calls

Angels “Position Trading Calls” are based on a through analysis of the price movements in
selected scripts and provides calls for taking positions with a 10 - 15 days time span with stop
losses and targets. These calls are also flashed on our terminals during market hours.

Derivative Strategies
Our analyst take a view on the NIFTY and selected scripts based on derivatives and technical
tools and devise suitable “Derivative Strategies” , which are flashed on our terminals and
published in our derivative reports.

23
Future Calls
A customised product for HNIs to help them trade with leveraged positions wherein clients
are advised on stocks with entry, exit and stop loss levels for short-term benefits. Over and
above this, financial status of the calls is mentioned at all times.

INDUSTRY PROFILE
HISTORY OF EQUITY MARKET

Market-oriented economic reforms in India began in 1991. with the removal of

Administrative controls on bank credit and primary market for securities, the capital
Market came to occupy a larger role in shaping resource allocation in the country. This
led to a heightened interest amongst policy makers in the institutional development of
securities markets. The efforts towards empowering the securities markets
regulator(SEBI) and the first efforts toward attracting foreign portfolio investments
began early in the reforms process. Almost immediately after the reforms began, there
was a prominent scandal on the fixed income and equity markets, which was exposed
in April 1992. This set the stage for an unusual policy intervention, the establishment
of a securities exchange, the National Stock Exchange (NSE), by the government.

24
From 1996 onwards, debates about policy issues on the equity markets were dominated
by questions about the role for leveraged trading. There was a proposal to have a spot
market based on “rolling settlement” (where leverage is limited to intra-day positions
only).
In 2001, a major crisis broke on the equity market. It involved numerous elements
large leveraged positions which went wrong, accusations of market manipulation, a
payment crisis at the Calcutta exchange, fraud in the banking system, ethics violations
at the Bombay stock exchange.
This crisis was valuable in breaking this five-year deadlock and moving on with
reforms.in June 2001, trading in index options commenced &within a matter of
weeks, liquidity improved sharply.
Over the 1990s, the equity market became a nationwide platform with real-time
capability for trading and settling stock transactions. However, comparable
improvements in the infrastructure for of both exchange institutions and SEBI is highly
limited.
STOCK MARKET

The term ‘the stock market’ is a concept for the mechanism that enables the trading of
company stocks, other securities, and derivatives.The stocks are listed and traded on
stock exchanges which are entities (a corporation or mutual organization) specialized
in the business of bringing buyers and sellers of stocks and securities together.

Equity/Share:Total equity capital of a company is divided into equal units of small

denominations, each called a share. For example, in a company the total equity capital
of Rs. 2,00,00,000 is divided into 20,00,000 units of Rs 10 each. Each such unit of Rs.
10 is called a share. Thus, the company then is said to have 20,00,000 equity share of
Rs 10 each. The holders of such shares are members of the company and have voting
rights. There are now stock markets in virtually every developed and most developing
economies, with the world’s biggest being in the United States, UK, Germany, France,
India and Japan.

Function and purpose: The financial system performs three main tasks: first it
handles transfer of payments: and third, it spreads and reduces (local enterprise)
economic risks in relation to the players targeted returns. The smooth functioning of
all these activities facilitates economic growth in that lower costs and enterprise risks

25
promote the productions of goods and services as well as employment. In this way
the financial system contributes to increased business investments and vice versa.
Share prices also affect the wealth of households and their consumption. Therefore,
central banks tend to keep an eye on the control and behavior of the stock market and,
in general, on the smooth operations of financial system functions.

Trading:Participants in the stock market range from small individual stock investors
to large hedge fund traders, who can be based anywhere.

Listing:Listing means admission of securities of an issuer to trading privileges on a

stock exchange through a formal agreement. The prime objective of admission to
dealing on the Exchange is to provide liquidity and marketability to securities.

Securities: A Security gives the holder an ownership interest in the assets of a

company. For example, when a company issues security in the form of stock, they give
the purchaser an interest in the company’s assets in exchange for money. There are a
number of reasons why a company issues securities, meeting a short – term cash
crunch or obtaining money for an expansion are just two.

Trading in India:NSE introduced for the first time in India, fully automated
screen based trading. It used a modern, fully computerized trading system designed to
often investors across the length and breadth of the country a safe and easy way to
invest. The NSE trading system called National Exchange for Automated Trading
(NEAT) is a fully automated screen based trading system, which adopt the principle of
an order to driven market.
Regulator:The responsibility for regulating the securities market is shared by
department of economic affairs (DEA), department of company affairs (DCA),
Reserve Bank of India (RBI) and securities and exchange board of India (SEBI).
WHAT IS SEBI AND WHAT IS ITS ROLE. The securities and exchange board of
India (SEBI) is the regulatory authority in India established under section 3 of SEBI
act 1992. SEBI act, 1992 provides for establishment of Securities and Exchange Board
of India (SEBI) with statutory powers for a protecting the interests of investors in

26
securities (B) promoting the developing of securities market and (c) regulating the
securities market. Its regulatory jurisdiction extends over corporate in the issuance of
capital and transfer of securities, in addition to all intermediaries and person associated
with securities market. SEBI has been obligated to perform the aforesaid function by
such major is its thinks fit. In particular, it has power for. Regulating the business in
stock exchanges and any other securities market. Registering and regulating the
working of stock brokers, sub-brokers etc.Promoting and regulating self – regulatory
organizations.Prohibiting fraudulent and unfair trade practices.Calling for information
from, undertaking inspection, conducting inquiries and audits of stock exchanges,
intermediaries,self-regulatory organizations, mutual funds and other persons associated
with the securities market.

STOCK EXCHANGE:

Role of a Stock Exchange in buying and selling shares:The stock exchange in India under
the supervision of the regulatory authority, the securities and exchange board of India (SEBI),
provide a trading platform buyers and sellers can meet to transact in securities. The trading
platform provided by NSE is an electronic one and there is no need for buyers and sellers to
meet at of physicallocation to trade. They through the computerized trading screens available
with the NSE trading members or the internet based trading facility provided by the trading
members of NSE.

NSE:The National Stock Exchange (NSE) located in Bombay, in Indias first debt
market. It was set up in 1993 to encourage stock exchange uniform through system
modernization and competition it opened for trading in mid1994. It was recently
accorded recognition as a stock exchange by the department of company affairs. The

27
instrument traded are treasury bills, government securities and bonds issued by public
sector companies.

BSE:Bombay stock exchange Limited is the oldest stock exchange in Asia with a rich
heritage.Popularly known as BSE. It was established as “The Native Share & Stock
Brokers Association” in 1875. It is the first stock exchange in the country to obtain
permanent recognition in1956. From the govt. of India under the securities contracts
(regulation) act 1956. The exchanges pivotal and pre-eminent role in the development
of the capital market is widely recognized and its index, Sensex is tracked worldwide.
The Exchange has a nation-wide reach with reach with a presence in 417 cities and
towns of India. The systems and processes of the Exchange are designed to safeguard
market integrity and enhance transparency in operations. During the year 2004-05 the
trading volumes on the exchange showed robust growth.

OUTCRY SYSTEM

The broker has to buy or sell securities for which he has received the orders. For this, the
broker or his authorized representatives goes to the stock exchange. This method is called
the open outcry system. Basically the brokers shout while buying or selling the securities.
The floor of the stock exchange is divided into a number of markets also known as ‘post
pit’ or wing based on particular securities dealt there.
In the post pit or wing, the broker using ‘open outcry’ method makes an offer or bid
price. For making the necessary bargain, he quotes his purchase or sale price, also known
as offer or bid price. The dealer, to whom the price is quoted, quotes his own price when
the quotation of the dealer suits the broker, he may loose the bargain. If he is not satisfied
with the quote price, he may turn to some other dealer. On the close of the bargain, the
dealer as well as the broker makes a brief note of the particulars of the deal. Such notes

28
are made on some pad and on it the number of shares, the price agreed upon, the name of
the party, what membership number etc., are noted.

DISADVANTAGES OF OUTCRY SYSTEM:

 It lacks transparency.
 The scope of manipulation, speculation and mal practice is more.
 Signal were more important in the outcry system any member who could not interpret
the buy/sell signal correctly often landed himself in disaster situation.
 In audibility was another disadvantage of the outcry system.
 Due to the above disadvantages of the outcry system the ANGEL BROKING
LIMITEDLtd has shifted from outcry system to online trading from February 29 th
1997.

MANUAL TRADING

Trading procedure before introduction of online trading

Trading on stock exchanges is officially done in the trading ring. In the trading ring the
space is provided for specified and non-specified sections, the members and their
authorized assistants have to wear a badge or carry with them an identity card given by
the exchange to enter the trading ring. They carry a sauda book or confirmation memos,
duly authorized by the exchange and carry a pen with them. The stock exchanges
operations are floor level are technical in nature .Non-members are not permitted to enter
in to stock market. Hence various stages have to be completed in executing a transaction
at a stock exchange .The steps involved in this method of trading have given below:

29
Choice of broker:
The prospective investor who wants to buy shares or the investors, who wants to sell
shares and transact business, have to act through member brokers only. They can also appoint
their bankers for this purpose as per the present regulations.

Placement of order:
The next step is the placing order for the purchase or sale of securities with a broker. The
order is usually placed by telegram, telephone, letter, fax etc or in person. To avoid delay, it
is placed generally over the phone. The orders may take any one of the forms such as At Best
Orders, Limit Order, Immediate or Cancel Order, Limited Discretionary Order, and Open
Order, Stop Loss Order.

Execution of order or contract:

Orders are executed in the trading ring of the BSE. This works from 11:30 to 2.30 P.M on
all working days Monday to Friday, and a special one-hour session on Saturday. The
members or the authorized assistants have to wear a badge given by the exchange to enter
into the trading ring. They carry a sauda Block Book or conformation memos, which are duly
authorized by the exchange when the deal is struck; both broker and jobber make a note in
their sauda block books. From the sauda book, the contract notes are drawn up and posted to
the client. A contract note is written agreement between the broker and his clients for the
transaction executed.
Drawing Up and Bills:

Both sale and purchase bills are prepared along with the contract note and it is posted on
the same day or the next day. This in a purchase transaction, once the shares are delivered
to the client effects payment for the purchases and pays the stamp fees for transfer, a bill
is made out giving the total cost of purchase, including other expenses incurred by the
broker in the price itself. With this, the process ends.

DEMATERLIZATION:

Dematerialization is the process by which physical certificates of an investor are

converted to an equipment number of securities in electronic from and credited in the
investor account with his DP. In order to dematerialize the certificates, an investor has to
30
first open an account with a DP and then request for the Dematerialization Request Form,
which is DP and submit the same along with the share certificates. The investor has to
ensure that he marks “Submitted for Dematerialization” on the certificates before the
shares are handed over to the DP for demat. Dematerialization can only be done to those
certificates, which are already registered in your name and belong to the list of securities
admitted for Dematerialization at NSDL.
Most of the active scrip’s in the market including all the scrip’s of S&P CNX NIFTY and
BSE SENSEX have already joined NSDL. This list is steadily increasing.
Briefly, the process is as follows: after completion of transfer, the investor gets the option
to dematerialize such shares. Investor’s willing to exercise this option sends a Demat
request along with the option letter sent by the company to his DP. The company or its
R&T agent would confirm the Demat request on its receipt from the DP to reduce risk of
loss in transit.
Dematerialized shares do not have any distinctive or certificate numbers. These shares are
fungible-which means that 100 shares of a security are the same as any other 100 shares
of the security. Odd lot shares certificates can also be dematerialized.
Dematerialization normally takes about fifteen to thirty days. To get back dematerialized
securities in the physical form, request DP for Rematerialization of the same is made.
Rematerialization is the process of converting electronic shares in to physical shares.

Benefits of Demat:
 It reduces the risk of bad deliveries, in turn saving the cost and wastage of time
associated with follow up for rectification. This has lead to reduction in brokerage
to the extent of 0.5% by quite a few brokerage firms.
 In case of transfer of electronic shares, you save 0.5% in stamp duty. You avoid
the cost of courier / notarization.
 You can receive your bonuses and rights issues into your DA as a direct credit,
this eliminating risk of loss in transit.
 You can also expect a lower interest charge for loans taken against Demat shares
as compared to loans against physical shares.
 There is no lost in transit, thus the overheads of getting a duplicate copy in such
circumstances is reduced.

31
  RBI has also reduced the minimum margin to 25% for loans against
dematerialized securities as against 50% for loans against physical securities.

TRADING AND SETTLEMENT AT SHARE KHAN

The NSE first introduced online trading in India. The Online trading system imparted a
greater level of transparency and investors preferred exchanges that offered Online
trading because of the following factors:

 The ease of operation from the view of the both members and the investors.
 Increase in the confidence of the investors because of higher level of transparency.
 Facilities better monitoring of the market by the exchange.
 The best price achieved in buying and selling.

All these resulted in ever-increasing volumes on the exchanges offering the online
trading.

TRADING PROCEDURE AT SHARE KHAN STOCK BROCKING

Share Khan deals in buying and selling equity shares and debentures on the National
Stock Exchange (NSE), the Bombay Stock Exchange (BSE) and the Over-The-Counter
Exchange of India (OTCEI).

Share Khan is provided with a computer and required software from their registered
stock exchanges. These centers are called “Broker Work Stations”. These computers are
connected to the server at the stock exchanges through cable.
The member or broker sitting in his office can send the quotations, orders, negotiations,
deals, in-house deals, auction orders etc., through the computer. The Central trading
system (CTS) will accept these orders and send it for match. If there is any mistake in the
32
 order, CTS will reject the orders and send respective error message to the member
concern. All these operations are in built. The main objective of CTS is to monitor the
Stock Exchanges operations.
Order placed by the broker will be sent for a match and if the match is found suitable, the
transaction will be executed. Otherwise, the order will be deleted automatically after
completion of trading time. The carry forward transactions (Good Till cancellation) are
forwarded to the next day. Even if the match is not found with in the prescribed period,
the order will not cancel.

TRADING SESSION
Trading timings are from 9:55 A.M. to 3:30 P.M. on all 5 days of the trading period.
Monday to Friday is the trading period in all the stock exchanges. SEBI has stipulated that all
the stock exchanges in India must have same trading period.

BROKER WORK STATION:

At the broker workstation the BBO’s, the last traded price, the day‘s opening price,
previous day’s closing price, highest and lowest prices, the weighted average price and
total trade value will be available continuously, as the BBO for each scrip.
Other information will be available on query from the BWS. These include top gainers
/losers of the day. Trader-wise, scrip wise net position, client wise net position, top scrip
by the volume/value, market summary etc.
Brokers are also provided with information relating to the companies in the matter of
Book closure, Dividend declarations, resolutions in board meeting, information about
liquidated companies, company report etc.

ORDERS:
 Orders can be done one at a time or in a batch mode.
 The submitted order will be accepted at the CTS, after validation if it finds any
invalid reason the order is return back to the BWS, with the appropriate error
message.
 If Accepted at the CTS it will be added to the local pending order book.

33
  The order will then be taken up for matching, if it is a buy order the system tries
to find a sell order, which fits the requirement of the buy order, when such match
is found a trade gets executed. Each trade involves two brokers and
respective traders who sent the order. Both these traders are informed of the trade
being executed at their respective BWS.
 At the BWS the trade is added to the local trade book.

Orders sent by the brokers are two types:

 Good for the day (GFD)
 Good till cancellation(GTC)

Good for the day:
This is also called as “market order”. For an order if the member selects the deal as
good for the day, the order is treated as market order. If a “best bid” founds match with
“best order” then the transaction gets executed. If the match is not found then after trade
time the order gets cancelled that day. Next day he has to place a new order.
For example if a member wants to purchase 1000 shares of Wipro info @ 400 each
through Good for Day order. If the correct match is not found, order gets cancelled
automatically and new quotation has to be placed the next day.

Good till cancellation:

This order is forwarded to the last trading day of that settlement period. This is also
called as carry forward order like GFD; broker has to select the option of GTC for the
order. If the order finds match with in the trading settlement period, the order is executed.
If no match is found, the order is cancelled on the last day of settlement period. This order
is not carried forward to the next settlement period.
For example, if a member a place purchase order of 500 shares of SBI @ 690 per share
and selects the order as GTC and place an order. If the match is not found on that day it
will be forwarded to the next day until trading settlement period day.

34
 SETTLEMENT OF TRANSACTIONS:

Clearing of transaction in the form of shares and cash is called settlement. Buyers will
take the delivery of shares through the depository participants like ANGEL BROKING
LIMITED and others.
Finally, the settlement is made by means of delivering the share certificates along with
the transfer deeds. The transferor (or the seller) duly signed transfer deed. It bears a stamp
of the selling broker. The buyer then fills up the certificates fills up the particulars in the
transfer deed. Settlement can be done in the following way.

Spot settlement: under this method, the delivery of securities and payment for them are
affected on the day of the contract itself.

Rolling settlement: Under this rolling settlement the trading is on “T+2”,basis i.e. if
Monday is trading day then Wednesday is the paying day . In case on non-delivery, the
securities will go for auction.

DETAILS OF PROCEDURES:

Delivery in : The members who are in pay-out position delivers share certificates in to
clearing house within the settlement period along with the delivery Chelan filled in with
the details of share certificates which has folio numbers or distinctive numbers etc.
Delivery out: The buyer of shares who made pay in position will take delivery of shares
from the clearing house.

Pay-in: The member who is in paying position shall pay for value of shares with in the
trading settlement period (T+2).
35
 Payout: The cheques paid in the clearinghouse will be paid to members who are in
paying position.

All disputes arising between members regarding non-deliveries, non-payments, good and
bad deliveries pertaining to the settlement will be settled by the settlement committee of
the exchange.

The given flow chart clearly explains the process of online trading:

36
 L o g in

B u y t r a n s c a t io n S e ll t r a n s c a t io n
T h e s y s te m w ill c h e c k y o u r
T h e s y s te m w ill c h e c k b u y in g d p ac c o u n t q u a n tity
lim its

O rd e rs a c c e p te d R e je c t e d o r d e r s w o u ld b e o rd e rs ac c e p te d
c o m m u n ic a t e d a lo n g w it h r e a s o n s

y o u r o r d e r is t r a n s m it t e d t o e x c h a n g e f o r e x e c u t io n

p e n d in g b u y o r d e r s o n e x e c u t io n p e n d in g s e ll o r d e r s
w o u ld b e d is p la y e d o f y o u r o rd e rs w o u ld b e d is p la y e d
o n y o u r s c re en o n y o u r s c re en

y o u m a y e d it y o u r y o u m a y d e le t e y o u m a y e d it y o u r y o u m a y d e le t e y o u r
p e n d in g o r d e r y o u r p e n d in g o r d e r p e n d in g o r d e r p e n d in g o r d e r

f la s h e d o n y o u r c o n f o r m a t io n c o u l c o n t r a c t n o t e w o u ld
s c r e e n im m e d ia t e ly d b e s e n d to y o u r b e s e n t t o b y m a il
o n e x e c u t io n e - m a il a n d m o b ile o r h a n d d e liv e r y

STOCK TRADES

The stock order entry screen, located at the top of the platform, allows you to buy, sell, and
sell short. The Save to Basket button can save any order that you may want to place later.

37
 To Place An Order

1. Click the Equities tab at the top of the page. The screen will show
"EQUITIES" at the top right-hand corner to let you know that you are in
stock-trading mode.
1. Select Buy, Sell, or Short from the drop-down menu below SIDE.
3. Enter the number of shares in Qty box.
4 Enter the symbol m Symbol box.
5. For a market order, click Market. For a limit order, enter the limit price
and click the Limit button. For a Good Till Canceled order, click GTC.
5. Click Submit to send the order,
6. If it is a GTC order, select 17 Days or 30 Days for the GTC order. Click
OK to send the order. If you do not want to send the order or if you want
to make changes, click Cancel.

8. A window will appear (as the picture) asking you to confirm the order. If all details are
correct, click OK to send the order. If you do not want to send the order, or if you
want to make changes, click Cancel.

38
To Save an Order into the Basket

You can enter an order and click the shopping cart icon to save it. Click Basket tab to see
the trades you have saved. Orders saved to the Basket are not sent to the market until you
decide to do so. This is not the same as placing Good Till Canceled or other open orders.

To Place an Order from the Watch List

You can also place an order from your Watch List

OPTION QUOTES AND OPTION TRADES

39
To Get Option Quotes

1. Click the Option Chain tab to open the option quote screen.
2. Enter the stock symbol in the Equity Symbol field.
3. Select the strike price from By Strike.
4. Select the expired month from the By Exp. Month.
5. Select the range of option quotes you would like to view from
Calls, Puts, or All
6. Click Go. The screen will list all the option symbols and current Market prices
associated with your criteria.
7. To Place an Option Trade

1. Click the Option button at the top left hand corner to open the option order entry
screen. OPTION will appear at the upper right-hand corner to let you know that you
are in Option mode.
1. Follow the above steps to open the option quote screen and get the option symbol.
2. In the Option Chain quote screen, double click the symbol, which you would like to
place an order.
3. The option order entry screen at the top will show the real-time quote of the option.
4. Select: Buy to Open, Sell to Open, Buy to Close, or Sell to Close from the drop-down
menu below SIDE.
5. Enter the number of contracts in the # of Contracts field.
6. Click Market, or enter a limit price and click Lim (Limit). For a Good Till Canceled
order, click GTC.
7. Click Submit
8. If it is a GTC order, select 17 Days or 30 Days for the GTC order. Click OK to send
the order. If you do not want to send the order or if you want to make changes, click
Cancel.

40
9. A window will appear (as the picture) asking you to confirm your order. If the
information is correct, click OK to send the order. If you click Cancel, the order will not
be sent to market.
LEVEL I QUOTE
The Level I real-time streaming quote updates automatically every five seconds and
continually throughout market hours.
To Get Quotes
1. Enter a symbol in the field located on the left-hand side. You can also click the small
arrow at the right to select a symbol you previously entered in the same day.
2. Press the Enter key on your keyboard or select Get Quotes (under the Select
Action drop-down menu) to display real-time streaming quotes.
a) Detailed Quotes:
Detailed quote, intra-day charts, and the latest news.
b)News:
Recent News.

c) Charts:
Six different chart types - intra-day, one month, three months, six months, one year and
Interactive.
d) SEC Filings:
The company's reports to the SEC.
e) Profile
A description of the company and fundamental information about its stock.
f) Historical:
The open, high, low and closing prices, change and volume of any given stock in the past six
years.

41
Bid:
Highest price at which someone currently offers to buy the stock.
Bid Size:
Number of shares, in hundreds, of the offer at the current Bid.
Change:
The difference between the price of the Last trade and the stock's previous Close price.
% Change:
The percent difference between the price of the Last trade and the stock's previous Close
price.
Close:
The last trade price on the previous trading day.
High:
Highest trade price of the stock during the current trade date.
Last:
Most recent trade price of the stock during the current trade day.
Low:
Lowest trade price of the stock during the current trade day.
Open:
The opening price for the stock on the current trade date.
Tick:
Located to the right of the symbol. Indicates whether the current Bid is higher or lower than
the previous Bid.
Current Bid is higher:
Tick will show an arrow pointing up.
Current Bid is lower:
Tick will show an arrow pointing down.
Current Bid is same:
Tick will show "UC" (unchanged).
Volume:
Total number of shares of the stock traded during the current trade date
Close:
The last trade price on the previous trading day.
High:
Highest trade price of the stock during the current trade date.
42
Last:

Most recent trade price of the stock during the current trade day.
Low:
Lowest trade price of the stock during the current trade day.
Open:
The opening price for the stock on the current trade date.
Tick:
Located to the right of the symbol. Indicates whether the current Bid is higher or lower than
the previous Bid.
Current Bid is higher:
Tick will show an arrow pointing up.
Current Bid is lower:
Tick will show an arrow pointing down.
Current Bid is same:
Tick will show "UC" (unchanged).
Volume:
Total number of shares of the stock traded during the current trade date

ACCOUNT SCREEN

43
To View Account Information
1. Click the Accounts tab to see your account information.

To Switch to another Account

2. Click the Accounts tab to open the Account screen.

3. Click Change Account button.
4. Select the new account number.

ORDER SCREEN
To View an Order You Placed
1. Click the Orders tab. The system will show all intra-day (same day)
1. Trades and their current status, which including pending, canceled,
filled.
To View Detailed Log for a Specific Order
1. Open the Order screen by following the above steps.
2. Click order sequence number in the UOI field.
3. Click TRANSACTIONS button.

4. A detailed order log will be displayed in a pop-out window.

5. Click OK to close the window.

44
To Cancel an Open Order
1. Open the Order screen by following the above steps.
2. To cancel one open order, select it and click Cancel.

3. To cancel all open orders, click Cancel All.

To Export Order Records to an Excel File

1. In the Order screen, click Import to Excel at the bottom.
2. Choose the location on your computer where you want to save the file and click Save.

BASKET TRADING

You can fill your basket with orders in advance, and place them later with just one click.

To Set Up Your Basket

1. Click the Basket tab to open the Basket window.

2. Select a basket from the drop-down menu at left.

3. To re-name the basket, click Rename Cart, type a new name into the pop-up
window, and click OK.

45
To Enter Orders Directly into the Basket
1. Click the Basket tab to open the Basket window.
2. Select a basket from the drop-down menu at left.
3. Click New Row at left to add stocks to the basket. OK.
4. Double click the empty field under Action and select your action:
Buy, Sell or Short
5. Double click on the empty field below Qty until it changes to written mode. Enter the
number of shares you would like to trade.

6. Double click on the empty field under Symbol until it changes to written mode.
Enter the stock symbol.

7. Double click on the empty field under Price. Enter a price for a limit order, or
select Mkt for a market order.

8. Double click on the empty field under Account. Choose the account number
from the drop-down menu.

To Save an Order to a Basket from the Order Entry Screen

You can save an order to a basket from the order entry screen and send the order to market
later.
1. In the Order screen, enter all the required information about the order.

46
 2. Click the shopping cart icon.

3. From the drop-down menu, select the basket in which you want to save the
order. Click OK to save, or Cancel to not save the order into the basket.

Remove an Order from the Basket

1. Click the Basket tab to see the Basket screen, and select one of
the baskets from the drop-down menu.
2. Select the order you want to remove.
3. Click Remove at right.
To Get Quotes for Stocks in the Basket

1. Click the Basket tab to see the Basket screen, and select one of
the baskets from the drop-down menu.
2. Select the order for which you would like to see a quote.

To Execute an Order in the Basket

1. Click the Basket tab to see the Basket screen, and select one of
the baskets from the drop-down menu.
2. To execute all orders listed in the basket, click Execute AH.
3. To execute only one order, select the order and then click Execute.

When you Execute trade(s) in the Basket, the Basket Order(s) will still display in the basket
until you remove the order(s).

47
 KEYS USED FOR TRADING

 Fl - BUY
 F2 - SELL
 F3 - PENDING ORDERS (BUYING & SELLING)
 F6 - MARKET DEBTS (COMPANY ENQUIRY)
 F7 - ARBITRAGE ORDERS
 F8 - HOW MANY TRADING HAS BEEN DONE
 SHIFT+F8 - NET POSITION OF THE COMPANY'S SHARES
 CTRL+F8 - SETTLEMENT OF NET POSITION FOR EXPOSURE
 SHIFT+F9 - NEWS
 F ll - ADDING A NEW COMPANY IN TO THE N/W
 F12 - TEMPORARY LOCKING OF WINDOWS

48
 Company :WIPRO LTD. 507685
Period: 14-Dec-2017 to 18-Jan-2018
All Prices in 
No. of  No. of  Total
Date Open High Low Close WAP
Shares Trades Turnover
14/12/17 566.00 572.00 560.25 567.30 564.20 55,110 2,225 3,10,92,838
17/12/17 567.00 568.00 556.75 558.60 561.27 1,02,963 3,028 5,77,89,542
18/12/17 553.00 559.17 553.00 555.00 555.65 1,86,065 2,843 10,33,86,489
17/12/17 555.00 558.00 554.05 556.00 555.91 2,68,792 3,746 14,94,23,670
18/12/17 553.20 557.20 550.90 554.40 555.05 69,722 2,760 3,86,99,368
21/12/17 553.00 558.65 549.00 556.05 554.22 63,307 2,394 3,50,86,056
22/12/17 556.00 556.40 552.55 555.65 554.96 38,711 1,218 2,14,83,241
23/12/17 558.70 559.20 553.85 555.80 556.05 30,011 1,389 1,66,87,719
24/12/17 555.80 559.90 554.50 555.95 556.98 31,397 1,196 1,74,87,561
28/12/17 556.00 562.75 556.00 560.55 560.59 39,342 1,520 2,20,54,895
29/12/17 558.50 567.90 558.50 563.55 564.46 42,145 1,803 2,37,89,174
30/12/17 564.10 567.75 556.00 558.20 561.13 27,503 914 1,54,32,846
31/12/17 558.25 563.50 557.25 559.80 559.68 40,928 1,082 2,29,06,594
1/01/18 558.00 558.75 554.55 556.40 556.03 48,595 1,236 2,70,20,477
4/01/18 560.00 560.00 555.40 557.95 556.99 2,68,278 4,459 14,94,29,139
5/01/18 561.00 564.00 554.50 557.00 556.90 72,188 1,466 4,01,90,478
6/01/18 557.00 559.70 553.80 555.25 556.50 73,067 1,357 4,06,61,880
7/01/18 553.00 557.40 547.50 549.80 552.20 3,02,121 4,530 18,68,31,275
8/01/18 552.00 558.00 550.00 556.00 554.46 2,18,378 3,048 11,99,73,220
11/01/18 555.00 555.00 535.00 537.80 541.03 46,855 2,041 2,53,50,144
12/01/18 538.40 550.40 531.25 549.00 543.50 2,04,077 3,034 11,09,18,148
13/01/18 551.00 551.00 540.25 546.30 545.50 92,491 2,009 5,04,53,462
14/01/18 541.80 547.30 536.25 545.40 543.65 3,08,849 3,803 18,79,06,406
17/01/18 549.80 549.80 537.10 543.45 541.96 62,737 2,068 3,40,00,781
18/01/18 537.30 550.20 531.00 547.35 541.69 1,54,996 4,826 8,39,59,345

49
 No. of  Trades
6,000

5,000

4,000
No. of  Trades
3,000

2,000

1,000

0
1 3 5 7 9 11 13 15 17 19 21 23 25

INTERPRETATION:

On open value risen from 566.00 to 567.30 than compare to higher value of
EPS 543.65. Then coming to lower price from 537.30 to 547.35. Wholly the
conclusion 548.61 raised.
The comings to the volume on the same dates or days volumes are
increased. Because on this session WIPRO LTD value is raised i.e. percentage of
6.68%.

Company :TVS MOTOR COMPANY LTD. 532343

Period: 14-Dec-2017 to 18-Jan-2018
All Prices in 
No.
No. of  Total
Date Open High Low Close WAP of 
Shares Turnover
Trades

50
14/12/17 272.00 278.75 271.00 275.05 276.07 1,24,171 3,028 3,42,73,817
17/12/17 277.60 286.00 273.95 285.05 281.03 4,00,078 4,801 11,24,33,018
18/12/17 287.00 287.00 280.70 281.75 283.41 1,34,034 3,009 3,79,86,209
17/12/17 283.60 288.80 281.00 287.30 286.01 1,32,611 3,564 3,79,27,524
18/12/17 285.45 287.65 284.35 286.10 286.04 81,378 1,681 2,32,77,299
21/12/17 287.00 291.40 287.00 289.05 289.50 86,797 2,055 2,51,27,694
22/12/17 289.05 291.90 287.25 288.05 289.59 1,01,620 1,590 2,94,28,345
23/12/17 289.75 293.50 288.85 290.10 290.96 66,091 1,306 1,92,29,847
24/12/17 291.50 291.70 284.20 285.00 286.73 74,765 1,589 2,14,37,612
28/12/17 284.20 288.00 283.00 285.50 284.94 4,14,399 2,399 11,80,78,564
29/12/17 286.90 295.95 285.95 293.30 291.34 1,46,229 3,637 4,26,01,948
30/12/17 293.90 294.45 289.60 290.20 292.01 88,432 1,947 2,58,22,951
31/12/17 290.90 292.85 288.35 289.65 290.87 60,694 1,393 1,76,53,890
1/01/18 289.10 292.17 285.60 287.10 288.54 98,630 1,779 2,84,58,905
4/01/18 288.25 290.85 283.90 286.45 287.53 1,47,002 2,539 4,22,67,799
5/01/18 286.50 289.17 282.45 286.95 285.60 1,11,747 1,773 3,19,14,446
6/01/18 289.50 294.00 284.90 286.55 290.06 6,58,899 2,620 19,11,17,980
7/01/18 284.80 284.80 275.20 277.60 278.12 85,090 2,521 2,36,64,944
8/01/18 277.95 287.17 277.95 284.60 282.56 98,718 2,395 2,78,93,217
11/01/18 283.00 289.17 278.90 285.85 285.69 1,17,444 2,235 3,29,80,847
12/01/18 286.00 292.50 285.00 289.70 289.02 1,64,889 3,272 4,76,56,174
13/01/18 293.45 294.30 273.35 288.10 286.21 5,07,031 3,576 14,51,19,563
14/01/18 281.60 284.40 276.40 281.40 280.82 1,09,493 1,963 3,07,47,700
17/01/18 283.85 285.55 273.55 277.65 280.96 1,17,588 2,182 3,24,75,389
18/01/18 273.50 280.00 263.10 274.00 271.76 1,98,017 2,928 5,38,12,993

51
 No. of  Trades
6,000

5,000

4,000
No. of  Trades
3,000

2,000

1,000

0
1 3 5 7 9 11 13 15 17 19 21 23 25

INTERPRETATION:

On open value has risen from 272.00 to 275.05. Then compare to higher value
of EPS 280.96. Then coming to lower price from 273.50 to 274.00. Wholly the
conclusion is 281.57 raised.
Then coming to the volume on the same dates or days volumes are increased.
Because totally this session TVS MOTOR COMPANY LTD. EPS value is increased i.e.
percentage of 3.47 %.

Company :TATA CONSULTANCY SERVICES LTD. 532540

Period: 14-Dec-2017 to 18-Jan-2018
All Prices in 
Date Open High Low Close WAP No. No. Total

52
 of  of  Turnover
14/12/1 2,344.9 2,384.4 2,335.0 2,377.4 2,361.2 1,34,95 Trades
Shares 31,86,51,64
7,148
7 0 5 0 5 4 1 8
17/12/1 2,380.0 2,384.9 2,365.7 2,375.2 2,375.1
26,963 3,529 6,40,40,496
7 0 0 0 0 3
18/12/1 2,397.9 2,414.5 2,385.7 2,407.1 2,398.5 1,26,42 30,32,24,79
5,219
7 5 5 0 0 5 0 8
17/12/1 2,420.0 2,445.7 2,395.2 2,440.3 2,418.1 18,57,96,17
68,562 3,711
7 0 5 0 5 9 0
18/12/1 2,437.5 2,437.5 2,403.1 2,418.4 2,413.8 1,60,06 38,63,61,91
5,991
7 5 5 7 5 0 4 0
21/12/1 2,410.0 2,448.0 2,407.4 2,440.9 2,430.3
36,528 3,183 8,87,75,185
7 0 0 5 5 3
22/12/1 2,441.0 2,441.0 2,400.5 2,405.9 2,414.4
34,966 2,613 8,44,25,092
7 5 5 0 5 9
23/12/1 2,411.3 2,435.0 2,410.0 2,420.4 2,423.0
24,183 2,054 5,85,97,543
7 5 0 0 0 9
24/12/1 2,420.0 2,435.9 2,403.8 2,433.3 2,426.0
19,196 1,702 4,65,69,745
7 0 5 0 5 1
28/12/1 2,422.0 2,462.9 2,422.0 2,458.5 2,441.8 2,07,43 50,65,18,41
4,667
7 0 0 0 0 4 2 8
29/12/1 2,460.0 2,464.5 2,445.0 2,451.9 2,452.6
24,100 1,978 5,91,09,087
7 0 0 0 5 6
30/12/1 2,452.0 2,457.0 2,413.0 2,418.4 2,434.4
27,404 2,297 6,67,12,285
7 0 0 0 0 0
31/12/1 2,420.0 2,448.0 2,409.0 2,439.2 2,429.4
31,481 2,740 7,64,80,179
7 0 0 0 0 1
2,432.1 2,436.3 2,412.4 2,418.2 2,421.1
1/01/18 32,189 2,835 7,79,34,148
0 5 0 5 4
2,418.1 2,418.1 2,369.0 2,375.5 2,380.9 1,31,24 31,24,92,53
4/01/18 8,610
0 0 5 0 1 9 6
2,383.0 2,386.3 2,343.5 2,350.3 2,352.2 17,28,32,89
5/01/18 73,477 5,036
0 5 5 5 0 4
2,365.0 2,384.5 2,352.2 2,381.2 2,374.3 10,71,42,21
6/01/18 45,125 3,023
0 0 0 0 4 9
2,375.0 2,379.7 2,359.8 2,370.0 2,366.7 17,70,14,20
7/01/18 66,343 3,183
0 0 5 5 0 8
2,380.0 2,409.0 2,372.9 2,397.2 2,394.5
8/01/18 34,627 2,867 8,29,18,345
0 0 5 5 6
11/01/1 2,396.4 2,396.4 2,349.9 2,363.0 2,362.8 32,783 3,335 7,74,62,720

53
8 5 5 0 0 9
12/01/1 2,367.9 2,367.9 2,301.1 2,324.0 2,323.2 1,45,56 33,81,96,25
10,728
8 5 5 0 5 7 9 0
13/01/1 2,317.0 2,327.9 2,258.0 2,280.3 2,277.5 3,36,27 76,58,97,71
17,547
8 0 5 0 0 8 7 3
14/01/1 2,275.0 2,297.5 2,252.6 2,278.9 2,280.4 1,22,43 27,92,08,24
7,367
8 0 0 0 5 6 5 3
17/01/1 2,290.0 2,291.3 2,258.1 2,263.5 2,265.3 19,84,38,38
87,596 6,741
8 0 5 7 0 8 0
18/01/1 2,270.0 2,291.0 2,263.0 2,282.4 2,281.2 18,48,07,48
72,243 3,677
8 0 0 0 5 9 6

No. of  Trades

18,000
16,000
14,000
12,000
10,000 No. of  Trades
8,000
6,000
4,000
2,000
0
1 3 5 7 9 11 13 15 17 19 21 23 25

INTERPRETATION:

On open value risen from 2344.90 to 2377.45 than compare to higher value of
EPS 2352.20. Then coming to lower price from 2270.00 to 2282.45. Wholly the
conclusion is 2368.51 raised.
The comings to the volume on the same dates or days volumes are increased.
Because on this session TATA CONSULTANCY SERVICES LTD value is raised i.e.
percentage of 11.27%.

54
 Company :TATA COMMUNICATIONS LTD. 500483
Period: 14-Dec-2017 to 18-Jan-2018
All Prices in 
No. of  No. of  Total
Date Open High Low Close WAP
Shares Trades Turnover
14/12/17 395.20 410.00 395.20 403.75 400.76 45,486 1,476 1,82,29,103
17/12/17 404.00 407.45 400.25 406.10 403.68 26,554 861 1,07,19,403
18/12/17 407.30 412.50 406.10 409.25 409.37 63,412 1,339 2,59,58,978
17/12/17 410.95 419.95 408.20 418.65 414.28 52,885 1,677 2,19,09,207
18/12/17 418.00 423.00 413.55 418.65 418.62 45,656 1,309 1,91,12,494
21/12/17 412.00 424.50 412.00 421.35 420.58 31,563 1,097 1,32,74,775
22/12/17 418.80 424.45 417.00 420.70 421.19 21,192 512 89,25,822
23/12/17 424.00 428.50 422.95 426.90 426.01 22,525 671 95,95,919
24/12/17 429.75 436.95 426.65 435.45 431.99 21,401 806 92,44,946
28/12/17 434.00 441.00 431.75 434.50 435.90 18,869 718 82,24,969
29/12/17 435.60 436.90 430.20 433.55 433.56 19,067 835 82,66,617
30/12/17 433.00 437.40 432.50 435.20 435.17 14,542 603 63,27,905
31/12/17 442.80 442.80 427.40 434.55 433.12 25,212 1,191 1,09,19,936
1/01/18 432.90 438.17 432.90 435.05 433.83 1,31,839 730 5,71,95,181
4/01/18 434.00 448.20 425.40 429.75 440.57 2,47,866 2,041 10,92,02,767
5/01/18 431.40 442.00 429.00 438.80 434.90 26,653 1,101 1,17,91,284
6/01/18 444.40 462.75 439.05 441.50 451.99 1,52,325 4,747 6,88,48,825
7/01/18 435.00 436.00 423.00 426.25 428.38 54,958 1,671 2,35,43,089

55
8/01/18 426.45 444.00 423.00 436.17 434.21 37,145 1,578 1,61,28,752
11/01/18 429.65 440.45 429.65 433.05 435.13 21,549 797 93,76,613
12/01/18 435.95 436.75 424.00 432.30 430.50 19,830 988 85,36,852
13/01/18 434.95 439.00 409.00 433.80 425.62 93,660 2,733 3,98,63,319
14/01/18 426.00 437.00 421.00 431.80 431.76 28,351 1,069 1,22,40,888
17/01/18 430.50 439.00 411.45 414.50 428.24 44,250 1,430 1,89,49,758
18/01/18 413.00 413.90 396.25 400.35 403.92 32,838 1,385 1,32,63,840

No. of  Trades

5,000
4,500
4,000
3,500
3,000
No. of  Trades
2,500
2,000
1,500
1,000
500
0
1 3 5 7 9 11 13 15 17 19 21 23 25

INTERPRETATION:

On open value has increased from 395.20 to 403.75. Then compare to higher
value of EPS 431.76. Then coming to lower price from 413.00 to 400.35. Wholly the
conclusion is 426.68 increased.
Then coming to the volume on the same dates or days volumes are increased.
Because totally this session TATA COMMUNICATIONS LTD. EPS value is increased
i.e. percentage of 3.54%.

56
 TABLE
Table of Correlation between Rates of Inflation &USD/INR EXHANGE Rate
Table no.
GDP
Annual Averages of Currency
Year growth
rate
(annual %)
2004 43.11 7.39
2005 44.95 4.03
2006 47.19 5.22
2007 48.6 3.77
2008 46.55 8.37
2009 45.33 8.28
2010 44.11 9.32
2011 45.33 9.27
2012 41.29 9.82
2013 43.41 4.93
2014 48.35 9.1
2015 45.65 8.81
2016 46.61 7.2

57
60

50

40

30
Annual Averages of Currency
rate
20 GDP growth (annual %)

10

0
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
9 99 0 00 001 002 0 03 004 005 0 06 007 008 0 09 010 011
1 2 2 2 2 2 2 2 2 2 2 2 2

58
 FINDINGS

 Cost of carry model and Interest rate parity model are useful tools to find out standard
future price and also useful for comparing standard with actual future price. And it’s
also a very help full in Arbitraging.

 New concept of Exchange traded currency future trading is regulated by higher

authority and regulatory. The whole function of Exchange traded currency future is
regulated by SEBI/RBI, and they established rules and regulation so there is very safe
trading is emerged and counter party risk is minimized in currency Future trading.
And also time reduced in Clearing and Settlement process up to T+1 day’s basis.

 Larger exporter and importer has continued to deal in the OTC counter even exchange
traded currency future is available in markets because,

 There is a limit of USD 100 million on open interest applicable to trading member
who are banks. And the USD 25 million limit for other trading members so larger
exporter and importer might continue to deal in the OTC market where there is no
limit on hedges.

 In India RBI and SEBI has restricted other currency derivatives except Currency
future, at this time if any person wants to use other instrument of currency derivatives
in this case he has to use OTC.

59
 SUGGESTIONS

 Currency Future need to change some restriction it imposed such as cut off limit of 5
million USD, Ban on NRI’s and FII’s and Mutual Funds from Participating.

 Now in exchange traded currency future segment only one pair USD-INR is available
to trade so there is also one more demand by the exporters and importers to introduce
another pair in currency trading. Like POUND-INR, CAD-INR etc.

 In OTC there is no limit for trader to buy or short Currency futures so there demand
arises that in Exchange traded currency future should have increase limit for Trading
Members and also at client level, in result OTC users will divert to Exchange traded
currency Futures.

 In India the regulatory of Financial and Securities market (SEBI) has Ban on other
Currency Derivatives except Currency Futures, so this restriction seem unreasonable
to exporters and importers. And according to Indian financial growth now it’s become
necessary to introducing other currency derivatives in Exchange traded currency
derivative segment.

60
 CONCLUSIONS

The most significant event in finance during the past decade has been the extraordinary
development and expansion of financial derivatives. These instruments enhances the ability
to differentiate risk and allocate it to those investors most able and willing to take ita process
that has undoubtedly improved national productivity growth and standards of livings.

The currency future gives the safe and standardized contract to its investors and individuals
who are aware about the forex market or predict the movement of exchange rate so they will
get the right platform for the trading in currency future. Because of exchange traded future
contract and its standardized nature gives counter party risk minimized.

Initially only NSE had the permission but now BSE and MCX has also started currency
future. It is shows that how currency future covers ground in the compare of other available
derivatives instruments. Not only big businessmen and exporter and importers use this but
individual who are interested and having knowledge about forex market they can also invest
in currency future.

Exchange between USD-INR markets in India is very big and these exchange traded contract
will give more awareness in market and attract the investors.

61
 BIBLIOGRAPHY

BOOKS:

Financial Derivatives (theory, concepts and problems) By: S.L. Gupta.

NCFM: Currency future Module.

BCFM: Currency Future Module.

Center for social and economic research Poland

Recent Development in International Currency Derivative Market by: Lucjan T. Orlowski

Report of the RBI-SEBI standing technical committee on exchange traded currency futures
2008

Report of the Internal Working Group on Currency Futures (Reserve Bank of India, April
2008

Websites:

https://sebi.gov.in
https://sharekhan.com
https://karvy.com
https://indiabulls.com
https://rbi.org.in
https://frost.com
https://wikipedia.com
https://economywatch.com
https://bseindia.com
https://nseindia.com
https://hdfcbank.com

62