Stock Exchange Online Share Trading at Nirmal Bang

8/18/2019 Stock Exchange Online Share Trading at Nirmal Bang

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SUMMER TRAINING PROJECT REPORT

ON

Stock Exchange Online Share Trading At Nirmal Bang

Preared and re!ented to

UN"ER T#E GUI"ANCE O$

COMPAN%&S GUI"E NAME' $ACU(T% NAME'

Mr. GUNJAN SONKER

RELATIONSHIP MANAGER

B%

SAURAB# )UMAR

Roll no' 1071470022

)an*r In!tit*te o+ Management St*die!

Unnao


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AC)NO,(E"GEMENT'

I am neither a reear!h e"#ert n$r a tren% #$tter& I am a mana'ement t(%ent )ith *$(n%ati$n $* mana'ement #rin!i#+e an% the$rie, )h$ i !(ri$( a-$(t ari$( e!t$r an% it +atet

ha##enin'.

/e*inite+, I !ant i'n$re the te!hn$+$', )ith internet a the -a!-$ne an% th$e ear!h en'ine

)hi!h he+#e% me in -(i+%in' (# thi reear!h #r$3e!t.

T$ -ein' )ith, I am $-+i'e% to Mr- )IS#ORE BANG an% Mr- "I(IP BANG Mana'in'/ire!t$r Nirma+ 5an' Se!(ritie P6T Lt%.)h$ a++$tte% me thi interetin' t$#i! an% )ith $(t

)h$e '(i%an!e an% !$ntr(!tie !riti!im thi re#$t mi'ht hae n$t -een !$m#+ete% .I )$(+%

+ie t$ than 5r$er, A'ent *ran!hie $)ner an% in%ii%(a+. I a##re!iate *$r their !$$#erati$n

an% !$ntri-(ti$n *$r he+#in' me in main' #r$3e!t *a!t(a+ an% in*$rmati$n.

I )$(+% +ie t$ e"#re m heart *(++ 'ratit(%e t$ Mr- GUNJAN SON)ER Re+ati$nhi#

Mana'er, NIRMA( BANG SECURITIES .P/T0 (T"- 8h$ he+#e% me in har#enin' m

thinin' - !heer*(++ #r$i%in' !ha++en'in' !$mment an% 9(eti$n. 8ith$(t the in%ii%(a+hae #r$i%e%, thi #r$3e!t )$(+% hae +$t m(!h $* it re*rehin' rea+im. Im a+$ than*(+ t$

the mana'ement : a++ em#+$ee $* NIRMA( BANG SECURITIES (T".

I a+$ e"#re m 'ratit(%e t$ Mr. /ire!t$r, Mr.H.O./ an% A(( $ACU(T% MEMBERS O$

MBA "EPARTMENT O$ )ANPUR INSTITUTE O$ MANAGEMENT STU"IES1

UNNAO )h$ hae -een intr(menta+ in main' thi re#$rt (e*(+ $ne.

Lat+, I )$(+% +ie t$ than t$ the ALMIGHT; an% m #arent *$r their m$ra+ an% *inan!ia+

(##$rt an% m !$++ea'(e )ith )h$m I hare% m %a%


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SAURAB# )UMAR

MBA

PRE$ACES'

In the e!$n$m *$r ti'htenin' 5(ine n(t an% -$+t $* an !$m#an in%(trie $r enter#rie it

i ne!ear t$ mea(re it maret #$iti$n in a !ertain time intera+ )ith eer !han'in' the$rie

an% the !$n!e#t $* maret.

=$r thi aement )e nee% the r$-(t meth$%$+$' $* (re. A+th$('h (re %$e n$t

reea+ the a-$+(te $+(ti$n $* an $-3e!tie, -(t it #r$i%e the in!+inati$n t$)ar% a '$$%

$(t#(t.

Nirma+ 5an' a '$$% hare tra%in' !$m#an in In%ian maret. In thi #r$3e!t )e !$m#are the

*(t(re $* thi !$m#an. =in% the a)arene +ee+, maret #$tentia+ $* thi !$m#an et!.

The #re#arati$n $* thi re#$rt #r$i%e $( 'reat #+ea(re in re+eain' $(r )$r an% maret

e"#erien!e in *e) #a'e )hi!h h$) $era++ an% e"#erien!e% n$)+e%'e an% the #ra!ti!a+

a##r$a!h a-$(t the t+e $* a #r$*ei$na+ an% thin' )hi!h )e *$(n% ari$( a**e!tin' t$ $(r

maretin' an% #r$%(!t ima'e.

The #r$3e!t terme% a >!tock Exchange 2 Online !hare Trading at Nirmal Bang3 ha ma%e

an e**$rt t$ *in% $(t the i(e !$n!ernin' )ith the NIRMA( BANG SECURITIES P/T (T"-


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TAB(E O$ CONTENT'

Tit+e #a'e 1


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Name $* t$! e"!han'e 14


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5i-+i$'ra#h 11B


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E4ECUTI/E SUMMAR%'

TOPIC' 5STOC) E4C#ANGE 2 ON(INE S#ARE TRA"ING AT NIRNAM BANG3

The #reent re#$t i #re#are% *$r the #artia+ $* M.5.A an% a a #art $* !(rri!(+(m. The (re i

an attem#t t$ %etermine an%>STO?K EF?HANGE : ONLINE SHARE TRA/ING AT NIRMAL 5ANG

SE?URITIES P6T. Lt%. T$ #(r(e reear!h area are L(!n$) )a !h$en )here the (re

!$n%(!te% thr$('h #er$nne+ interie).

The %ata !$++e!ti$n i an ana+@e% an% $me #ra!ti!a+ t$$+ )ere a##+ie% t$ 'et in*eren!e *r$m

the (re. The re(+t are #rinte% in the 'ra#h an% %ia'ram.


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The !$n!+(i$n i that Nirma+ 5an' e!(ritie Pt Lt%. In In%ia in '$$% !$n%iti$n.

The reear!h re#$rt ha t)$ e!ti$n in it *irt e!ti$n !$m#an an% in%(tr #r$*i+e i 'ien,

)here a e!$n% Reear!h Meth$%$+$' i 'ien )hi!h in!+(%e am#+e %ei'n, ana+i $nam#+e an% #reentati$n i in the *$rm $* %ia'ram an% !hart.

=ina++ $me (''eti$n )ith re#e!t t$ the (re *$r the *(t(re im#r$ement i 'ien t$

im#r$e the (re -e!a(e their !$m#etit$r hae a+$ taen (# the (re.

At the en% $* the re#$rt +imitati$n, S8OT ana+i, !$n!+(i$n $* the reear!h an% A##en%i"

)hi!h in!+(%e 9(eti$nnaire an% the +it $* the !it )here the Sriram ini'ht hare -r$er Lt%are r(nnin'. Lat there i 5i-+i$'ra#h, =A, an% G+$ar that ha the te!hni!a+ term $* the

re#$rt.

O67ecti8e! o+ !t*d9'

T$ (n%ertan% : ana+@e the maretin' trate'ie an% ana+@e $n+ine

Tra%in' $* NIRMA( BANG-

T$ im#r$e the *$rmat $* %ai+ a+e re#$rt /SR

T$ 'et the /emat a!!$(nt $#ene% $* #$tentia+ !(t$mer in *a$r $* nirma+ 5an'.

Ana+i $* nee% an% ati*a!ti$n $* %itri-(ti$n $* *inan!ia+ eri!e.


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T$ 'ie a -rie* i%ea a-$(t the -ene*it aai+a-+e *r$m M(t(a+ =(n% inetment an% i%ea

$* t#e $* !heme aai+a-+e.

T$ %i!( a-$(t the maret tren% $* M(t(a+ =(n% inetment.

T$ t(% $me $* the m(t(a+ *(n% !heme an% ana+@e them $-ere the *(n%

mana'ement #r$!e $* m(t(a+ *(n%.

E"#+$re the re!ent %ee+$#ment in the M(t(a+ =(n% in In%ia. T$ 'ie an i%ea a-$(t the

re'(+ati$n $* M(t(a+ =(n%.

RESEARC# MET#O"O(OG%'

T$ a!hiee the $-3e!tie $* t(%in' the t$! maret %ata ha -een !$++e!te% Reear!h Meth$%$+$'!arrie% *ir thi t(% !an -e t)$ t#e.

RESEARC# "ESIGNE' Thi reear!h i %e!ri#ti$n $* the tate $* a**air, a it e"it at #reent. S$

in thi reear!h I (e% the %e!ri#ti$n reear!h.


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"ATA SOURCES' In thi reear!h, I (e% #rimar %ata *r$m the %i**erent -r$er, a'ent,

retai+er an% inet$r, an% e!$n%ar %ata *r$m Shriram ini'ht Share 5r$er Lt%.

RESEARC# APPROAC#' /e#th t(% $*t he inet$r #er!e#ti$n )ith re#e!t t$ e9(it

inetment.

RESEARC# INSTRUMENT' tr(!t(re% #er$na+ interie).

T%PES O$ :UESTIONS' $#en an% !+$e


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1. M$re e"#$(re M$t $* %itri-(t$r )ant $me m$re e"#$(re *$r them !+ient *r$m

their hare -r$in' !$m#anie. Nirma+ 5an' i n$) #r$i%in' (#er e"#$(re # t$ 1 $*

the mar'in !ah e'ment the te# +ie thi rea++ !reate ati*a!ti$n *$r the %itri-(t$r.

2. 5r$era'e #r$-+em S$me !$m#anie hae er hi'h -r$era'e !hare )hi!h !reate

%i**eren!e $* maret hare $* %i**erent !$m#anie an% a+$ %iati*a!ti$n am$n'

%itri-(t$r.

. =e)er $**er M$t $* !$m#anie +a' -ehin% in 'iin' time t$ time $**er in $r%er t$

attra!t ne) !(t$mer.


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BOMBA% STOC) E4C#ANGES'

Thi t$! e"!han'e, M(m-ai, #$#(+arit n$)n a >5SE )a eta-+ihe% in 1C7 a >The

natie hare an% t$! -r$er a$!iati$n, a a $+(ntar n$n


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It ha an e$+e% $er the ear int$ it tat( a the #remiere t$! e"!han'e in the !$(ntr. It

ma -e n$te% that the t$! e"!han'e the $+%et $ne in Aia, een $+%er than the T$$ St$!

E"!han'e, )hi!h )a *$(n%e% in 1C7C.

The e"!han'e, )hi+e #r$i%in' an e**i!ient an% tran#arent maret *$r tra%in' in e!(ritie,

(#h$+% the interet $* the inet$r an% en(re re%ree% $* their 'riean!e, )hether a'aint

the !$m#anie $r it $)n mem-er -r$er.

It a+$ trie t$ e%(!ate an% en+i'hten the inet$r - main' aai+a-+e ne!ear in*$rmatie

in#(t an% !$n%(!tin' inet$r e%(!ati$n #r$'rammer.

A '$ernin' -$ar% !$m#rie $* e+e!te% %ire!t$r, 2SE5I n$minee, 7 #(-+i! re#reentatie an%

an e"e!(tie %ire!t$r i the a#e" -$%, )hi!h %e!i%e the #$+i!ie an% re'(+ate the a**air $* the

e"!han'e.

The e"e!(tie %ire!t$r a the !hie* e"e!(tie $**i!er i re#$ni-+e *$r the %a t$%a

a%minitrati$n $* the e"!han'e. The aera'e %ai+ t(rn$er $* the e"!han'e %(rin' the ear

2000


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The NSE )a in!$r#$rate% i n$) 1DD2 )ith an e9(it !a#ita+ $* R 2 !r$re. The internati$na+

e!(ritie !$n(+tan! IS? $* H$n' K$n' ha he+#e% in ettin' (# NSE.

ISE ha #re#are% the %etai+ -(ine #+an an% inta++ati$n $* har%)are an% $*t)are tem.

The #r$m$ti$n *$r NSE )ere *inan!ia+ intit(ti$n, in(ran!e !$m#anie, -an an% SE5I

!a#ita+ maret Lt%, in*ratr(!t(re +eain' an% *inan!ia+ eri!e Lt% an% t$! h$+%in'

!$r#$rati$n Lt%.

It ha -een et (# t$ tren'then the m$e t$)ar% #r$*ei$na+i@ati$n $* the !a#ita+ maret a

)e++ a #r$i%e nati$n )i%e e!(ritie tra%in' *a!i+itie t$ inet$r. NSE i n$t an e"!han'e in

the tra%iti$na+ ene )here -r$er $)n an% mana'e the e"!han'e.

A t)$ tier a%minitratie et (# in$+in' a !$m#an -$ar% an% a '$ernin' a-$ar% $* the

e"!han'e i enia'e%. NSE i a nati$na+ maret *$r hare PSU -$n%, %e-ent(re an%

'$ernment e!(ritie in!e in*ratr(!t(re an% tra%in' *a!i+itie are #r$i%e%.

NAME O$ T#E STOC) E4C#ANGE'


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5$m-a t$! e"!han'e.

?a+!(tta t$! e"!han'e.

Ahma%a-a% hare an% t$! -r$er a$!iati$n.

/e+hi t$! e"!han'e a$!iati$n Lt%.

Ma%ra t$! e"!han'e a$!iati$n Lt%.

In%$re t$! -r$er a$!iati$n Lt%.

5an'a+$re t$! e"!han'e.

H%era-a% t$! e"!han'e.

?$!hin t$! e"!han'e.

P(ne t$! e"!han'e.

U.P t$! e"!han'e.

L(%hiana t$! e"!han'e.

Jai#(r t$! e"!han'e.

Ga)hati t$! e"!han'e Lt%.

Ma'ha% t$! e"!han'e Lt%.

6%$%ar% t$! e"!han'e Lt%.

?$im-at$re t$! e"!han'e Lt%.

The Meer(t t$! e"!han'e.

Nati$na+ t$! e"!han'e.

Man'a+$re t$! e"!han'e Lt%, Patana.

5h(eneh)ar t$! e"!han'e a$!iati$n.

Oer the !$(nter e"!han'e $* In%ia.

5$m-a a(ratra (th t$! e"!han'e Lt%.

Inte'rate% t$! e"!han'e.


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ON(INE S#ARE TRA"ING IN IN"IA'

N$) )ith H/=?, I?I?I %ire!t, hare han, Shriram ini'ht an% $ther -r$er,Share tra%in' in In%ia ha '$ne $n+ine. Startin' at a-$(t 2 #!t, $n+ine tra%in' *$rm a-$(t #!t in

term $* $+(me I thin the *i'(re i hi'her than 10 #!t in the retai+ e'ment


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S$me $* thee hae '$ne $n t$ -e!$me the -i''et -r$er in In%ia. It ha $#ene% the maret

t$ a )h$+e e'ment $* #e$#+e. Ear+ier, inetin' in hare )a %$ne - a +imite% *e) m$t $*

)h$ a##+ie% in an IPO an% t(! )ith ti++ the )ante% m$ne.

N$), n$t $n+ $n+ine tra%in' ma%e +i*e eaier *$r thee #e$#+e, it ha $#ene% (# inetin' an%

tra%in' t$ e'ment that neer -e*$re #arti!i#ate% in it. 5 m r$('h etimate %(rin' m

e"#erien!e in In%ia te!h tra%in' in In%ia.

Unti+ the arria+ -r$era'e in a-$(t 2000 $r $, )a +ie %riin' $n In%ian r$a%. It )a a

*ami+iar t$r $* mi'ht i ri'ht, -i' tr(! -r$er r(+e% the maret : there )ere #$th$+e an%

#it*a++ in the ha#e $* -a% %e+ierie, %ih$n$re% !$nta!t, *ae : )hat n$t.

Un+ie the hi'h)a )hi!h hae remaine% $(t $* the rea!h $* the Aam a%mi, the hare maret

ha !han'e%. S$me)here in the ninetie there )a a )h$+e m$e t$ mae hare e+e!tr$ni! :

*(n'i-+e +ie m$ne n$te, a hare i a hare. An% m$e them t$ the %emateria+i@e% %emat

*$rm.

S+$)+, *r$m the #hi!a+ )$r+% hare m$e t$ %i'ita+ )$r+% at the NS/L. Then tra%in'

-e!ame e+e!tr$ni!. =irt it )a a *e) $* the -+(e !hi#, then it )a m$t $* the -+(e !hi# an%

+$)+ it ha taen $er m$t $* the maret.

Ne) i(e are t$%a, e"!+(ie+ e+e!tr$ni!. I* %i'iti@ati$n t$$ !are $* the -a! en%, it ha

a+$ ma%e +i*e at the ea at the *r$nt en%. In the #hi!a+ %e+ier )$r, $ne ha% t$ ta+ t$ a

-r$er )h$ t$+% $( the 9($te.

There )a n$ )a $* n$)in' i* the 9($te )a ri'ht. There )a n$ )a $* n$)in' i* $(r

tra%e )a ma%e, e#e!ia++ i* $( ma%e a '$$% !a++ 5a% !a++, a+m$t ineita-+ '$t ma%e. The

-r$er !$(+% a that thi )a the -et #ri!e I '$t an% n$-$% )$(+% -e )ier.

;$( )$(+% n$t n$) i* the hare !ame *r$m hi a!!$(nt $r *$rm the maret. ;$( )$(+% n$t

n$) i* the hare )ere tr(e *$r the ma++ inet$r. O%% +$t )hi!h )e ineita-+ a)ar%e%

%(rin' #+it, mer'er )ere a '$$% a t$! )hi!h )$(+% neer '$t $+% $r the -r$er )$(+%

#(r!hae them at a #ri!e )a -e+$) the maret #ri!e.


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In%(tr a-$(t 70 $* em#+$ee are hae $n+ine a!tie a!!$(nt, man $* )hi!h )ere $#ene%

in the ESOP era eem +ie a +$n' )hi+e -a!, m$re than C0 $* thee inet$r are a!tie

tra%er, the n(m-er $* %a tra%er are +e.

5(t a ma++ !h(! $* thee a+$ %a--+e in the *(t(re an% $#ti$n maret. 5ei%e thi $-i$(

e'ment )hi!h i !$nne!te% t$ the $n+ine )$(+% a++ %a +$n' *r$m the !(-i!+e, there are $ther

e'ment )hi!h hae h$)n interet in tra%in' %(e t$ it !ae.

H$(e)ie retire% #r$*ei$na+ an% een ma++ -(ineman. 8hat )a hithert$ a ma+e

%$minate #here a+$ ha 9(ite a *em )$men int$ tra%in'. The re'i$na+ t$! e"!han'e )hi!h

)ere the )a t$ r$(te tra%e in the $+%en %a, are n$) a+m$t %e*(n!t )ith 5SE an% NSE NSE

m$re than 5SE h$+%in' )a.

Ear+ier inet$r )ere m$t+ *r$m the -i''er !itie. 8ith $n+ine tra%in', it ha $#ene% aen(e

*$r inet$r *r$m the #art $* the !$(ntr )ith an internet !$nne!ti$n.

A *e) m$nth a'$, 5(ine )$r+% Re'itrati$n(-!ri#ti$n re'%. In%ia re#$rte% that 4B #!t $*

the tra%e )ere %$ne - the t$# 100 -r$er in 1DDB


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A t$! maret i a #(-+i! maret *$r the tra%in' $* !$m#an t$! an% %eriatie at an a'ree%

#ri!e thee are e!(ritie +ite% $n a t$! a )e++ a th$e $n+ tra%e% #riate+.

The in!e $* )$r+% t$! maret )a etimate% at a-$(t B.B tri++i$n US at the -e'innin' $* O!t$-er 200C. The t$ta+ )$r+% %eriatie maret ha -een etimate% at a-$(t 7D1 tri++i$n

*a!e$** n$mina+ a+(e.

11 time the i@e $* the entire )$r+% e!$n$m. The a+(e $* the %eriatie maret, -e!a(e it i

tate% in term $* nati$na+ a+(e, !ann$t -e %ire!t+ !$m#are% t$ a t$! $r a *i"e% in!$me

e!(rit, )hi!h tra%iti$na++ re*er t$ an a!t(a+ a+(e.

M$re$er, the at ma3$rit P= %eriatie !an!e+ ea!h $ther $(t i.e., a %eriatie -et $n an

eent $!!(rrin' i $**et - a !$m#ara-+e %eriatie -et $n eent n$t $!!(rrin'.

Man (!h re+atie+ i++i9(i% e!(ritie are a+(e% a maret t$ m$%e+, rather than an a!t(a+

maret #ri!e. The t$! are +ite% an% tra%e% $n t$! e"!han'e )hi!h are entitie $* an

!$r#$rati$n $* m(t(a+ $r'ani@ati$n #e!ia+i@e% in the -(ine $* -rin'in' -(er an% e++er $*

the $r'ani@ati$n t$ a +itin' $* t$! an% e!(ritie t$'ether.

The t$! maret in the (nite% tate in the (nite% tate in!+(%e the tra%in' $* a++ e!(ritie

+ite% $n the N;SE E(r$ ne"t, the NAS/A, the Ame", a )e++ a $n the man re'i$na+e"!han'e, e.'. OT?55 an% Pin heet. E(r$#ean e"am#+e $* t$! e"!han'e in!+(%e% the

L$n%$n St$! E"!han'e, the /e(t!he 5$re.


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MAR)ET PARTICIPANTS'

A *e) %e!a%e a'$, )$r+%)i%e, -(er an% e++er )ere in%ii%(a+ inet$r, (!h a )ea+th

-(ineman, -$th +$n' *ami+ hit$rie an% em$ti$na+ tie t$ #arti!(+ar !$r#$rati$n.

Oertime, maret hae -e!$me m$re >intit(ti$na+i@e% -(er an% e++er are +ar'er intit(ti$n

e.'. Peni$n *(n%, in(ran!e !$m#anie , m(t(a+ *(n%, in%e" *(n%, e"!han'e tra%e% *(n%,

he%'e *(n% inet$r 'r$(#, -an an% ari$( $ther *inan!ia+ intit(ti$n.

The rie $* the intit(ti$na+ inet$r ha -r$('ht )ith t $me im#r$ement in maret $#erati$n.

Thi, the '$ernment )a re#$ni-+e *$r >*i"e%an% e"$r-itant *ee -ein' mare%+ re%(!e%

*$r the ma++ inet$r, -(t $n+ a*ter the +ar'e intit(ti$n ha% mana'e% t$ -rea the -r$er

$+i% *r$nt $n *ee. The then )ent t$ ne'$tiate% *ee, -(t $n+ *$r +ar'e intit(ti$n.

H$)eer, !$r#$rate '$ernan!e at +eat in the )et ha -een er m(!h a%ere+ a**e!te% -

rie $* +ar'e+ a-entee intit(ti$na+ $)ner

.


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#ISTOR%'

Hit$rian =ernan%$ 5ra(%e+ (''ete% that in ?air$ in the 11th !ent(r, M(+im an% Je)ih

mer!hant an% a+rea% et (# eer *$rm $* tra%e a$!iati$n an% ha% n$)+e%'e $* man

meth$% $* *inan!ia+ %ea+in', %i#r$in' the -e+ie* that thee )ere $ri'ina++ inente% +ater -

Ita+ian.

In 12th !ent(r =ran!e the !$(rratier %e !han'e )ere !$n!erne% )ith mana'in' an% re'(+ati$n

the %e-t $* a'ri!(+t(ra+ !$mm(nitie an% -eha+* $* the -an. 5e!a(e thee men a+$ tra%e )ith

%e-t, the !$(+% -e !a++e% the *irt -r$er.

A !$mm$n mi-e+iee i that in +ate 1th !ent(r 5r('e !$mm$%it tra%er 'athere% ini%e the

h$(e $* a man !a++e% 6an %er 5e(r@e, an% in 10D the -e!ame the >5r('e 5e(re

intit(ti$na+i@in' )hat ha% -een.

Unti+ then, an in*$rma+ meetin', -(t a!t(a++, the *ami+ 6an %er 5e(r@e ha% a -(i+%in' in

Ant)er# )here th$e 'atherin' $!!(rre%& the 6an %er 5e(r@e ha% Ant)er#, a m$t $* the

mer!hant $* that #eri$%.

A their #rimar #+a!e *$r tra%in'. The i%ea 9(i!+ #rea% ar$(n% =+an%er an% nei'h-$rin'

!$(ntrie an% >5e(r@en $$n $#ene% in Ghent an% Amter%am.

In the mi%%+e $* the 1th !ent(r, 6enetian maret -e'an t$ tra%e in '$ernment e!(ritie. In

11 the 6enetian '$ernment $(t+a)e% #rea%in' r(m$r inten%e% t$ +$)er the #ri!e $*

'$ernment e!(ritie %(rin' the 14th !ent(r.

Thi )a $n+ #$i-+e -e!a(e thee )ere in%e#en%ent !it tate n$t r(+e% - a %(e -(t a

!$(n!i+ $* in*+(entia+ !iti@en. The /(t!h +ater tarte% 3$int t$! !$m#anie, )hi!h +et

hareh$+%er inet in -(ine en(re an% 'et a hare $* their #r$*it $r +$e.


23/111

In 1B02, the /(t!h Eat In%ia ?$m#an i(e% the *irt hare $n the Amter%am t$! e"!han'e.

It )a the *irt !$m#an t$ i(e t$! an% -$n%.

The Amter%am t$! E"!han'e r$ Amter%am 5e(r i a+$ ai% t$ hae -een the *irt t$!

e"!han'e t$ intr$%(!ti$n !$ntin($( tra%e in the ear+ 17th !ent(r.

The /(t!h >#i$neere% h$rt e++in', $#ti$n tra%in', %e-t


24/111

Imortance O+ Stock Market'

$*nction and *ro!e

The !tock market i $ne $* the m$t im#$rtant $(r!e *$r !$m#anie t$ raie m$ne. Thi

a++$) -(inee t$ -e #(-+i!a++ tra%e% $r raie% a%%iti$na++ !a#ita+ *$r e"#ani$n - e++in'

hare $* $)nerhi# $* the !$m#an in a #(-+i! maret.

The +i9(i%it that an e"!han'e #r$i%e a**$r% inet$r the a-i+it t$ 9(i!+ an% eai+ e++

e!(ritie. Thi i an attra!tie *eat(re $* inetin' in t$!, !$m#are% t$ $ther +e +i9(i%

inetment (!h a rea+ etate.

Hit$r ha h$)n that the #ri!e $* hare an% $ther aet i an im#$rtant #art $* the %nami! $*

e!$n$mie a!tiit, an% !an in*+(en!e $r -e an in%i!at$r $* $!ia+ m$$%.

An e!$n$m )here the t$! maret i $n the rie i !$ni%ere% t$ -e an (# an% !$min'

e!$n$m.

In *a!t, the t$! maret i $*ten !$ni%ere% the #rimar in%i!at$r $* a !$(ntr e!$n$mi!

tren'th an% %ee+$#ment. Riin' hare #ri!e, *$r intan!e, ten% t$ -e a$!iate% )ith in!reae%

-(ine inetment an% i!e era.

Share #ri!e a+$ a**e!t the )ea+th $* h$(eh$+% an% their !$n(m#ti$n.


25/111

There*$re, !entra+ -an ten% t$ ee# an ee $n the !$ntr$+ an% -ehai$r $* the t$! maret an%,

in 'enera+, $n the m$$th $#erati$n $* *inan!ia+ tem *(n!ti$n. =inan!ia+ ta-i+it i the rai$n

%tre $* !entra+ -an.

E"!han'e a+$ a!t a the !+earin'h$(e *$r ea!h trana!ti$n, meetin' that the !$++e!t an%

%e+ier the hare, an% '(arantee #ament t$ the e++er $* a e!(ritie. Thi e+iminate the ri t$

an in%ii%(a+ -(er $r e++er that the !$(nter#art !$(+% %e*a(+t $n the trana!ti$n.

The m$$th *(n!ti$nin' $* a++ thee a!tiitie *a!i+itie e!$n$mie 'r$)th in that +$)er !$t

enter#rie ri #r$m$te the #r$%(!ti$n $* '$$% an% eri!e a )e++ a em#+$ment.

In thi )a the *inan!ia+ tem !$ntri-(ti$n t$ in!reae% #r$#erit. An im#$rtant a#e!t $*

m$%ern maret, h$)eer, in!+(%in' the t$! maret, i a-$+(te %i!reti$n.

=$r e"am#+e, in the USA t$! )e ee m$re (nretraine% a!!e#tan!e $* an *irm than in imi+ar

maret. S(!h a, ?hinee *irm )ith n$ i'ni*i!ant a+(e t$ Ameri!an $!iet t$ 3(t name $ne

e'ment.

Thi #r$*it USA -aner $n 8a++ Street, a the rea# +ar'e !$mmii$n *r$m the #+a!ement, an%

the ?hinee !$m#an )hi!h ie+% *(n% t$ inet in !hina.

;et a!!r(e n$ intrini! a+(e t$ the +$n'


26/111

The *inan!ia+ tem in m$t )etern !$(ntrie ha (n%er'$ne a remara-+e tran*$rmati$n. One

*eat(re $* thi %ee+$#ment i %iinterme%iati$n. A #$rti$n $* the *(n% in$+e% in ain' an%

*inan!in' -an +en%in' an% %e#$it $#erati$n.

The 'enera+ #(-+i! hei'htene% interet in inetin' in the t$! maret, either %ire!t+ $r

thr$('h m(t(a+ *(n%, ha -een an im#$rtant !$m#$nent $* thi #r$!e. Statiti! h$) that in

re!ent %e!a%e hare hae ma%e (# an in!reain'+ +ar'e #r$#$rti$n $* h$(eh$+% *inan!ia+

aet in man !$(ntrie.

In the 1D70, in S)e%en, %e#$it a!!$(nt an% $ther er +i9(i% aet )ith +itt+e ri ma%e (#

a+m$t B0 #er!ent $* h$(eh$+% *inan!ia+ )ea+th, !$m#are% t$ +e than 20 #er!ent in the 2000.

The ma3$r #art $* thi a%3(tment in *inan!ia+ #$rt*$+i$ ha %ire!t+ t$ hare -(t a '$$% %ea+ n$)

tae the *$rm $* ari$( in% $* intit(ti$na+ inetment *$r 'r$(# $* in%ii%(a+, e.'., #eni$n

*(n%, m(t(a+ *(n%, he%'e *(n%, in(ran!e inetment $* #remi(m, et!.

The tren% t$)ar% *$rm $* ain' )ith a hi'her ri ha -een a!!ent(ate% - ne) r(+e *$r m$t

*(n% an% in(ran!e, #ermittin' a hi'her #r$#$rti$n $* hare t$ -$n%.

Simi+ar ten%en!ie are t$ -e *$(n% in $ther in%(tria+i@e% !$(ntrie. In a++ %ee+$#e% e!$n$mie

tem, (!h a the E(r$#ean Uni$n, the Unite% State, Ja#an an% $ther %ee+$#e% nati$n, the

tren% ha -een the ame ain' ha m$e% a)a *r$m tra%iti$na+ '$ernment in(re% -an

%e#$it t$ m$re ri e!(ritie $* $ne $rt $r an$ther.


27/111

The Stock Market1 Indi8id*al In8e!tor!1 and $inancial Ri!k'

Riier +$n'


28/111

At the ame time, in%ii%(a+ inet$r, immere% in !hat r$$m an% mea'e -$ar%, are

e"!han'in' 9(eti$na-+e an% $*ten mi+ea%in' ti#.

;et, %e#ite a++ thi aai+a-+e in*$rmati$n, inet$r *in% it in!reain'+ %i**i!(+t t$ #r$*it. St$!

#ri!e r$!et )ith +itt+e rea$n, then #+(mmet 3(t a 9(i!+.

An% #e$#+e )h$ hae t(rne% t$ inetin' *$r their !hi+%ren e%(!ati$n an% their $)n retirement

-e!$me *ri'htene%. S$metime there a##ear t$ -e n$ rhme $r rea$n t$ the maret, $n+ *$++.

Thi i a 9($te *r$m the #re*a!e t$ a #(-+ihe% -i$'ra#h a-$(t the +$n'


29/111

Thi eent %em$ntrate% that hare #ri!e !an *a++ %ramati!a++ een th$('h, t$ thi %a, it i

im#$i-+e t$ *i" a 'enera++ a'ree% (#$n %e*inite !a(e a th$r$('h ear!h *ai+e% t$ %ete!t an

rea$na-+e %ee+$#ment that mi'ht hae a!!$(nte% *$r the !rah. 5(t n$te that (!h eent are

#re%i!te% t$ $!!(r tri!t+ - !han!e, a+th$('h er rare+.

It eem a+$ t$ -e the !ae m$re 'enera++ that man #ri!e m$ement -e$n% that )hi!h are

#re%i!te% t$ $!!(r ran%$m+ are n$t $!!ai$ne% - ne) in*$rmati$n a t(% $* the *i*t +ar'et

$ne


30/111

An$ther #hen$men$na+$ *r$m #!h$+$'that )$r a'aint an $-3e!tie aement i

'r$(# thinin'. A $!ia+ anima+, it i n$) ea t$ ti! t$ an $#ini$n that %i**er mare%+ *r$m

that $* a ma3$rit $* the 'r$(#.

An e"am#+e )ith )hi!h $ne ma -e *ami+iar i the re+(!tan!e t$ enter a reta(rant that i em#t&

#e$#+e 'enera++ #re*er t$ hae their $#ini$n a+i%ate% - th$e $* $ther in the 'r$(#.

In $ne #a#er the a(th$r %ra) an ana+$' )ith 'am-+in'. In n$rma+ time the maret -ehae

+ie a 'ame $* r$(+ette& the #r$-a-i+itie are n$)n an% +ar'e+ in%e#en%ent $* the inetment

%e!ii$n $* the %i**erent #+aer.

In time $* maret tre, h$)eer, the 'ame -e!$me m$re +ie #$er her%in' -ehai$r tae

$er. The #+aer n$) m(t 'ie hea )ei'ht t$ the #!h$+$' $* $ther inet$r an% h$)

the are +ie+ t$ rea!t #!h$+$'.

The t$! maret, a an $ther -(ine, i 9(ite (n*$r'iin' $* amate(r. Ine"#erien!e%

inet$r rare+ 'et the aitan!e an% (##$rt the nee%.

In the #eri$% r(nnin' (# t$ 1DC7 !rah, +e than 1 #er!ent $* the ana+i re!$mmen%ati$n ha%

-een t$ e++ an% een %(rin' the 2000


31/111

Irrational 6eha8ior'

S$metime the maret eem t$ rea!t irrati$na++ t$ e!$n$mi! $r *inan!ia+ ne), een i* that

ne) i +ie+ t$ hae n$ rea+ e**e!t $n the te!hni!a+ a+(e $* e!(ritie ite+*.

5(t thi ma -e m$re a##arent than rea+, in!e $*ten (!h ha -een anti!i#ate%, an% a !$(nter rea!ti$n ma $!!(r i* the ne) i -etter $r )$re than e"#e!te%.

There*$re, the t$! maret ma -e )ae% in either - #re re+eae, r(m$r e(#h$ria an%

ma #ani!& -(t 'enera++ $n+ -rie*+, a m$re e"#erien!e% inet$r e#e!ia++ the he%'e *(n%

9(i!+ ra++ t$ tae a%anta'e $* een the +i'htet, m$mentar hteria.


32/111

Oer the h$rt -(in' an% e++in' are 'enera++ $-!(re.

5ehai$rit ar'(e that inet$r $*ten -ehae irrati$na++ )hen main' inetment %e!ii$n

therein!$rre!t+ #ri!in' e!(ritie. Thi !a(e maret ine**i!ien!ie, )hi!h, in t(rn, are

$##$rt(nitie, t$ mae m$ne.

H$)eer, the )h$+e n$ti$n $* EMH i that thee n$n


33/111

Pri!e

One $* the m$t *am$( t$! maret !rahe tarte% O!t$-er 24,1D2D $n 5+a! Th(r%a. The

/$) J$ne in%(tria+ +$t 0 %(rin' thi t$! maret !rah. It )a the -e'innin' $* the Great

%e#rei$n.

An$ther *am$( !rah t$$ #+a!e $n O!t$-er 1D, 1DC7 5+a! M$n%a an%

>5+a! T(e%a are a+$ (e% *$r O!t$-er 2C


34/111

Thi eent raie% 9(eti$n a-$(t man im#$rtant a(m#ti$n $* m$%ern e!$n$mi!, name+, the

the$r $* rati$na+ h(man !$n%(!t, the the$r $* maret e9(i+i-ri(m an% the h#$thei $* maret

e**i!ien!.

=$r $me time a*ter the !rah, tra%in' in t$! e"!han'e )$r+%)i%e )a ha+te%, in!e the

e"!han'e !$m#(ter %i% n$t #er*$rm )e++ $)in' t$ en$rm$( 9(antit $* tra%e -ein' re!eie%

at $ne time.

Thi ha+t in tra%in' a++$)e% the =e%era+ Reere Stem an% !entra+ -an $* $ther !$(ntrie t$

tae mea(re t$ !$ntr$+ the #rea%in' $* )$r+%)i%e *inan!ia+ !rii.

In the Unite% State the SE? intr$%(!ti$n eera+ ne) mea(re $* !$ntr$+ int$ the t$! maret

in an attem#t t$ #reent a re


35/111

(e8eraged !trategie!

• St$! that a tra%er %$e n$t a!t(a++ $)n ma -e tra%e% (in' h$rt e++in'& mar'in

-(in' ma -e (e% t$ #(r!hae t$! )ith -$rr$)e% *(n%& $r, %eriatie ma -e (e%t$ !$ntr$+ +ar'e -+$! $* t$! *$r a m(!h ma++er $* am$(nt $* m$ne than )$(+% -e

re9(ire% - $(tri'ht #(r!hae $r a+e.

Short !elling

• In h$rt e++in', the tra%er -$rr$) t$! ((a++ *r$m hi -r$era'e )hi!h h$+% it

!+ient hare $r it $)n hare $n a!!$(nt t$ +en% t$ h$rt e++er then e++ it $n the

maret, h$#in' *$r the #ri!e t$ a++.

• The tra%er eent(a++ -( -a! the t$!, main' m$ne i* the #ri!e *e++ in the meantime

$r +$in' m$ne i* it r$e& e"itin' a h$rt #$iti$n - -(in' -a! the t$! i !a++e%

>!$erin' a h$rt #$iti$n.

• Thi trate' ma a+$ -e (e% - (n!r(#(+$( tra%er t$ arti*i!ia++ +$)er the #ri!e $* a

t$!. Hen!e m$t maret either #reent h$rt e++in' $r #+a!e retri!ti$n $n )hen an%

h$) a h$rt a+e !an $!!(r.

• The #ra!ti!e $* nae% h$rtin' i i++e'a+ in m$t -(t n$t a++ t$! maret.

Margin 6*9ing'

• In mar'in -(in', tra%er -$rr$) m$ne at interett$ -( a t$! an% h$#e *$r it t$

rie. M$t in%(tria+i@e% !$(ntrie hae re'(+ati$n that re9(ire that i* the -$rr$)in' i

-ae% $n !$++atera+ *r$m $ther t$! the tra%er $)n $(tri'ht, it !an -e a ma"im(m $* a

!ertain #er!enta'e $* th$e $ther t$! a+(e.


36/111

• In the Unite% State, the mar'in re9(irement hae -een 0 *$r man ear that i, i*

$( )ant t$ mae a 100 inetment, $( nee% t$ #(t (#00, an% there i $*ten a

maintenan!e mar'in -e+$) the 00.

• A mar'in !a++ i ma%e i* the t$ta+ a+(e $* the inet$r a!!$(nt !ann$t (##$rt the +$

$* the tra%e.

• U#$n a %e!+ine in the a+(e $* the mar'ine% e!(ritie a%%iti$na+ *(n% ma -e re9(ire

t$ maintain the a!!$(nt e9(it, an% )ith $r )it $(t the mar'ine% e!(ritie $r an $ther

)ithin the a!!$(nt ma -e $+% - the -r$er t$ #r$te!t it +$an #$iti$n. Thi inet$r

i re#$ni-+e *$r an h$rt*a++ *$++$)in' (!h *$r!e% a+e.

• Re'(+ati$n $* mar'in re9(irement - the =e%era+ Reere )a im#+emente% a*ter the

!rah $* 1D2D. 5e*$re that, #e!(+at$r t#i!a++ $n+ nee%e% t$ #(t (# a +itt+e a 10 $r

een +e $* the t$ta+ inetment re#reente% - the t$! #(r!hae%.

• Other r(+e ma in!+(%e the #r$hi-iti$n $* *reeH$) %$ I

n$) m$ne inetin' There are man %i**erent a##r$a!he& t)$ -ai! meth$% are

!+ai*ie% a either *(n%amenta+ ana+i $r te!hni!a+ ana+i.

• =(n%amenta+ ana+i re*er t$ ana+@in' !$m#anie - their *inan!ia+ tatement *$(n%

in SE? =i+in', -(ine tren%, 'enera+ e!$n$mi! !$n%iti$n, et!.


37/111

• Te!hni!a+ ana+i t(%ie #ri!e a!ti$n in maret thr$('h the (e $* !hart an%

9(antitatie te!hni9(e t$ attem#t t$ *$re!at #ri!e tren% re'ar%+e $* the !$m#an

*inan!ia+ #r$#e!t.

•

One e"am#+e $* a te!hni!a+ trate' i the Tren% *$++$)in' meth$%, (e% - J$hn 8Henr an% ri !$ntr$+ an% %ieri*i!ati$n.

• A%%iti$na+, man !h$$e t$ inent ia the in%e" meth$%. One h$+% a )ei'ht $r (n)ei'ht

#$rt*$+i$ !$nitin' $* the entire t$! maret $r $me e'ment $* the t$! maret (!h

a the S:P 00 $r 8i+hire 000.

• The #rin!i#+e aim $* thi trate' i t$ ma"imi@e %ieri*i!ati$n, minimi@e ta"e *r$m t$$

*re9(ent tra%in' an% ri%e the 'enera+ tren% $* the t$! maret )hi!h, in the U.S, ha

aera'e% near+ 10 ear, !$m#$(n%e% ann(a++, in!e 8$r+% 8ar II.

Taxation'

• A!!$r%in' t$ m(!h nati$na+ $r tate +e'i+ati$n, +ar'e arra $* *i!a+ $-+i'ati$n are ta"e%

*$r !a#ita+ 'ain. Ta"e are !har'e% - the tate $er the trana!ti$n, %ii%en% an%

!a#ita+ 'ain $n the t$! maret, in #arti!(+ar in the t$! maret.

• H$)eer, thee *i!a+ $-+i'ati$n ma ar *r$m 3(ri%i!ti$n t$ 3(ri%i!ti$n -e!a(e,

am$n' $ther rea$n, it !$(+% -e a(me% that ta"ati$n i a+rea% in!$r#$rate% int$ the

t$! #ri!e thr$('h the %i**erent ta"e !$m#anie #a t$ the tate, $r that ta" *ree t$!

maret $#erati$n are (e*(+ t$ -$$t e!$n$mi! 'r$)th.


38/111

ABOUT NIRMA( BANG GROUP'

•

=$(n%e% in 1DCB - Sri Nirma+ 5an' Gr$(# i re!$'ni@e% a $ne $* the +ar'et retai+ -r$in' h$(e in In%ia, #r$i%in' an arra $* *inan!ia+ #r$%(!t an% eri!e.

• O(r retai+ an% intit(ti$na+ !+ient hae a!!e t$ #r$%(!t (!h a e9(itie, %eriatie,

!$mm$%itie, !(rren! %eriatie, m(t(a+ *(n%, IPO, in(ran!e, %e#$it$r eri!e an%

PMS.


39/111

• Thr$('h$(t $(r hit$r, )e hae *$tere% $ne $erri%in' #(r#$e ea!h !+ient )ith

#er$na+ eri!e an% 9(a+it )$r - a%herin' t$ the #rin!i#a+, )e hae 'r$)n t$

-e!$me a (!!e*(+ a )e++


40/111

• =r$m the er -e'innin' $* the re+ati$nhi#, )e )$r !+$e+ )ith eer !+ient t$ i%enti*

hi *inan!ia+ '$a+ an% ri t$+eran!e +ee+ an% +eera'e $(r tren'th $* the #r$%(!t

$**erin', reear!h an% *inan!ia+ tren'th t$ he+# a!hiee hi '$a+. In the #r$!e, )e

-e!$me an #r$*ei$na+ #artner, !reatin' $##$rt(nit, a%%in' a+(e an% tran*$rm ii$n

int$ rea+it.

"i8er!e !er8ice! o++ering

• In a%%iti$n t$ tra%iti$na+ -r$in' eri!e, )e are a+$ e9(i##e% t$ han%+e !$mm$%ittra%in' *a!i+it a )e++ a !(rren! %eriatie an% hae a!!e t$ a )i%e ran'e $*

*inan!ia+ eri!e +ie IPO, m(t(a+ *(n% an% in(ran!e.

Timel9 !er8ice!

• In an in!reain'+ !$m#etitie enir$nment, !+ient t$%a re9(ire #er$na+i@e% $+(ti$n

an% 'reater *+e"i-i+it an% re#$niene than eer -e*$re. O(r #r$*ei$na+ are a+)a

$n !a++. 8e #r$i%e them eri!e thr$('h$(t the ear an% n$t 3(t at the en% $* the

ear. 8e -e+iee (!h eri!e i eentia+ *$r %e+ierin' $+(ti$n an% !$ntr(!tie

re+ati$nhi#.

A6le team

• 8e hae %ee+$#e% a tr$n' an% en%(rin' team - re!r(itin' *r$m +ea%in' 'ra%(ate an%

#$t'ra%(ate (nieritie an% #r$m$tin' *r$m )ithin. O(r team )$r t$'ether t$ #r$i%e(#eri$r re(+t t$ $(r !+ient. At the ame time, ea!h $* $(r !+ient i ai'ne% a #e!i*i!

team mem-er )h$ $)ner the re+ati$nhi#, #r$i%in' !$ntin(it, re#$niene an% a

#$int $* ea a!!e t$ the *irm.

C*lt*re

• 8e trie t$ maintain tan%ar% at a++ time an% +a em#hai $n h$net,inte'rit an% !$n*i%entia+it. 8e #ea an% a!t t$ en(re tran#aren! at a++

+ee+ an% in eerthin' )e %$.

$inancial !trength


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• The tren'th $* $(r -a+an!e heet i (!h that it 'ie 'reater !$n*i%en!e t$

a++ $(r retai+ an% intit(ti$na+ !+ient in %etai+ )ith (. The *inan!ia+ tren'th

$* the 'r$(# he+# in *(t(re -(i+%in' the net)$r an% in*ratr(!t(re t$ !ater

t$ the +ar'er maret.

IN$RASTURUCTURE'

8e -e+iee $r -et in*ratr(!t(re 'ie a i'ni*i!ant a%anta'e a++$)in' ( t$ #r$i%e e**i!ient,

tran#arent an% 9(a+itatie eri!e. O(r te!hn$+$' (##$rt eerthin' *r$m e"e!(tie tra%e

an% mana'in' $(r inet$r $* t$! t$ !$mm(ni!atin' (#


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Back o++ice'

=$r -a! $**i!e $#erati$n, )e (e the +i%ha /i%ha tem $* A#e" S$*t !e++ Pt. Lt%. Thi i $ne

$* the t$# m$t -a! $**i!e $*t)are in the in%(tr. It ha the !a#a!it t$ #r$!e $er $ne +ah

tra%er in a *ie min(te *rame.

O(r $#erati$n team ha an ea


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Re!earch Exerti!e'

O(r reear!h team i hea%e% - t)$ eni$r reear!h ana+t )h$ hae m$re than 1 ear $*

e"#erien!e in thi *ie+%.

O(r team $* e"#erien!e% *(n%amenta+ reear!h an% te!hni!a+ ana+t #r$i%e re#$rt $n

in%(trie, e!t$r, !$m#anie an% in%ii%(a+ t$!. O(r reear!h re#$rt are -a!e% - in*it9? @commodit9@ c*rrenc9?@m*t*al +*nd@IPO@PMS@in!*rance@"P rod*ct!-

Management hilo!oh9'

Nirma+ 5an' Gr$(# -(ine ent(re are hi'h+ (!!e*(+ %(e t$ $(r Mana'ement

#hi+$$#h. =eat(re $* thi in!+(%e t$ta+ em#$)erment $* it em#+$ee, %e!entra+i@e% %e!ii$n<

main' #r$!e an% *ree%$m $* a!ti$n. M$t $* a++, the Gr$(# ie) eer em#+$ee a a

#$tentia+ #artner in -(ine. Gr$(# ?$m#anie ha a+$ -een intr(menta+ in !reatin'

inn(mera-+e in%ire!t 3$- in the !$mm(nitie the ere.

A6o*t Nirmal Bang'

Nirma+ 5an' Se!(ritie Pt Lt%. i the t$!


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H(man re$(r!e i the e t$ an eri!e e!t$r in%(tr. 8e hae a tr$n' an% i-rant

)$r*$r!e in eer *ie+% $r $(r a!tiit, -e it reear!h, tem, a!!$(nt, maretin' $r

net)$rin'.

8ith the man#$)er tren'th $* $er 1100 em#+$ee, the ?$m#an i mana'e% - a hi'h+

m$tiate%, 9(a+i*ie% : ta+ente% team $* #r$*ei$na+ 9(a+i*ie% ?A, M5A,, En'ineer, et! )ith

#r$en tra! re!$r%.

Technolog9'

St$!

h$(e team $* hi'h+ !$m#etent $*t)are an% net)$rin' en'ineer )h$ !$ntant+ reie)tem an% #r$!e%(re t$ en(re $#erati$na+ e**i!ien!.

A++ $(r -ran!he are !$nne!te% thr$('h 8i%e Area Net)$r 8AN an% are ere% - a

!entra+i@e% -a! $**i!e #r$!ein' tem, )hi!h ena-+e !+ient t$ $-tain (# t$ %ate in*$rmati$n

$n+ine at the !+i! $* a -(tt$n.

C*!tomer $oc*!'

/e#ite a ra#i%+ e"#an%in' !+ient -ae an% a %i@@in' in!reae in trana!ti$n $+(me, ea!h!+ient at Nirma+ 5an' i #e!ia+. 8e #e!ia+i@e in -(i+%in' +$n' term re+ati$nhi# )ith $(r

!(t$mer - #r$i%in' them )ith the *$(r thin' the %eire m$t, i@., #ee%,, !$nenien!e,

re+ia-i+it an% #er$na+i@e% eri!e.

O(r !$ntin($( trie t$ #r$i%e -et eri!e t$ $(r !+ient, re(+t in re!ei#t $* n$t a in'+e

Ar-itrati$n A)ar% a'aint the !$m#an in!e it in!e#ti$n.


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A- ,I"E OPTION ,#I(E TRA"ING'

A rod*ct +or e8er9 need'

• Nirma+ 5an' i the m$t !$m#rehenie )e-ite, )hi!h a++$) $( t$ inet in hare,

m(t(a+ *(n%, %eriatie =(t(re an% O#ti$n an% $ther *inan!ia+ #r$%(!t. Sim#+ #(t,

)e $**er $( #r$%(!t *$r eer inetment nee% $* $(r.

Trading in !hare!'

• Nirma+ 5an' $**er $( ari$( $#ti$n )hi+e tra%in' in hare.

Ca!h trading'

• Thi i a %e+ier -ae% tem, )hi!h i 'enera++ %$ne )ith the in*$rmati$n $* tain'

%e+ier $* hare $r m$nie.

Margin Trading'


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;$( !an a+$ %$ an intra


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• 5( t$%a e++ t$m$rr$) 5TST i a *a!i+it that a++$) $( e++ hare een $n 1 t an%

2n% %a a*ter the -(in' $r%er %ate, )ith$(t $( hain' t$ 8aite *$r the re!ei#t $* hare

int$ $(r %emat a!!$(nt.

Call N Trade'

• ?a++ N Tra%e a++$) $( !a++ $n a +$!a+ n(m-er in $(r !it : tra%e $n the te+e#h$ne

thr$('h $(r !(t$mer eri!e E"e!(tie.

• Tra%in' in NSE5SE thr$('h Nirma+ 5an' $( !an tra%e $n NSE an% 5SE.

Market order'

• Thi i an $r%er t$ -( e++ e!(ritie at the -et #ri!e $-taina-+e in the maret at the time

it i mat!he% - the e"!han'e. There*$re, !han'e $* it 'ettin' e"e!(te% are -etter. In !ae

$* maret $r%er *$r NSE, a++ maret $r%er #+a!e% )hi!h are n$t e"e!(tie *(++& it

-e!$me a +imit $r%er *$r the -a+an!e 9(antit at the +at tra%e% #ri!e.

Market Order in BSE' Exlanation'

Maret $r%er !an -e #+a!e% $n+ %(rin' maret h$(r i.e., )hen the E"!han'e i $#en *$r

tra%in'.

;$( !$(+% tra%e - #+a!in' maret $r%er %(rin' maret h$(r that a++$) $( t$ tra%e at the -et

$-taina-+e #ri!e in the maret at the time $* e"e!(ti$n $* the $r%er.

(imit Order'

Limit Or%er i an $r%er t$ -( $r e++ e!(ritie in )hi!h $( #e!i* the ma"im(m #ri!e #er (nit

in !ae $* a -( $r%er an% the minim(m #ri!e #er (nit in !ae $* e++ $r%er. The a!t(a+ trana!ti$n

!an -e at a #ri!e m$re *a$ra-+e than the #ri!e #e!i*ie%.


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A++$) $( t$ #+a!e a -(e++ $r%er at a #ri!e %e*ine% - $(. The e"e!(ti$n !an ha##en at a

#ri!e m$re *a$ra-+e than the #ri!e, )hi!h i %e*ine% - $(, +imit $r%er !an -e #+a!e% - $(

%(rin' h$+i%a : n$n maret h$(r t$$.

Online con+irmation o+ Order and trade'

;$( 'et $n+ine !$n*irmati$n $* $r%er an% tra%e< the tat( $* an $r%er i (#%ate% $n rea+


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Sto (o!! Order'

A t$# +$ $r%er a++$) the !+ient t$ #+a!e an $r%er )hi!h 'et a!tiate% $n+ )hen the maret

#ri!e $* the re+eant e!(ritie rea!he% $r !r$e a threh$+% #ri!e #e!i*ie% - the inet$r in

the *$rm $* t$! +$ tri''er #ri!e. 8hen a t$# +$ tri''er #ri!e SLTP i #e!i*ie% in a +imit$r%er, the $r%er -e!$me $ne )hi!h i !$n%iti$na+ $n the maret #ri!e $* the t$! !r$in' the

#e!i*ie% SLTP. The $r%er remain #aie i.e. n$t e+i'i-+e *$r e"e!(ti$n ti++ the !$n%iti$n i

ati*ie%. On!e the +at tra%e% #ri!e $* the t$! rea!he% $r (r#ae the SLTP, the $r%er

-e!$me a!tiate% i.e. e+i'i-+e *$r e"e!(ti$n - -ein' taen (# in the mat!hin' #r$!e $* the

e"!han'e an% then $n -ehae +ie a n$rma+ +imit $r%er. It i (e% a a t$$+ t$ +imit the ma"im(m

+$ $n a #$iti$n.

Sto (o!! 69 Order'

A h$rt e++ re+ian!e hare at R. 2 in e"#erien!e that the #ri!e )i++ *a++. H$)eer, in the

eent the #ri!e rie a-$e hi -( #ri!e A )$(+% +ie t$ +imit e++ $r%er #e!i*in' a t$! +$

tri''er #ri!e R. 0 an% a +imit #ri!e $* R. 00. The t$# +$ tri''er #ri!e #ri!e ha t$ -e

-et)een the +imit #ri!e an tra%e #ri!e at the time $* #+a!in' the t$# +$ $r%er. On!e the +at

tra%e #ri!e t$(!he $r !r$e R. 0, the $r%er 'et !$nerte% int$ a +imit e++ $r%er at RS. 00.

' Trade in deri8ati8e!'

$*t*re'

Thr$('h Nirma+ 5an' $( !an n$) tra%e in in%e" an% t$! *(t(re $n the NSE in *(t(re tra%in',

$( tae -(e++ #$iti$n in in%e" $r t$! S !$ntra!t hain' a +$n'er !$ntra!t #eri$% $* (#t$

m$nth.

Tra%in' in =UTURE i im#+e i*, %(rin' the !$(re $* the !$ntra!t +i*e, the #ri!e m$e in *a$r

i.e. rie in !ae $( hae a - #$iti$n $r e++ in !ae $( hae a e++ #$iti$n, $( mae a #er*e!t. Preent+ $n+ e+e!te% t$!, )hi!h meet the !ertain +i9(i%it an% $+(me, hae -een

ena-+e% *$r *(t(re tra%in'.

?a+!(+ate in%e" an% n$) $(r mar'in are t$$+ t$ he+# $( in !a+!(+atin' $(r mar'in

re9(irement an% a+$ the in%e" : t$! #ri!e m$ement.


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Otion'

An $#ti$n i a !$ntra!t, )hi!h 'ie -(er the ri'ht t$ -( $r e++ hare at a #e!i*i! #ri!e, $n a

-e*$re a #e!i*i! %ate. =$r thi, the -(er ha t$ #a t$ the e++er $me m$ne, )hi!h i !a++e%

#remi(m. There i n$) $-+i'ati$n $n the -(er t$ !$m#+ete the trana!ti$n i* the #ri!e i n$t

*a$ra-+e t$ him.

T$ tae the -(e++ #$iti$n $n in%e"t$! $#ti$n, $( hae t$ #+a!e !ertain $* $r%er a+(e a

mar'in. 8ith $#ti$n tra%in', $( !an +eera'e $n $(r tra%in' +imit -( taen -(e++ #$iti$n

m(!h m$re that )hat $( !$(+% hae taen in !ah e'ment.

The -(er $* a !a++ $#ti$n ha the ri'ht -(t n$t the $-+i'ati$n t$ #(r!hae the (n%er+in' aet at

the #e!i*ie% trie #ri!e -( #ain' a #remi(m )herea the e++er $* the !a++ ha the $-+i'ati$n

$* e++in' the (n%er+in' aet at the #e!i*ie% trie #ri!e.

The -(er $* a #(t $#ti$n a the ri'ht -(t n$t the $-+i'ati$n t$ e++ the (n%er+in' aet at the

#e!i*ie% trie #ri!e #ain' a #remi(m )herea the e++er $* the #(t ha the $-+i'ati$n $* -(in'

the (n%er+in' the aet at the #e!i*ie% #ri!e. 5( #ain' +eer am$(nt $* #remi(m, $( !an

!reate #$iti$n $r%er $#ti$n an% tae a%anta'e $* m$re tra%in' $##$rt(nitie.

S


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S9!tematic


53/111

in%e"ati$n, )hi!h re%(!e $(r !a#ita+ 'ain, in%e"ati$n -ene*it, i n$t aai+a-+e $n %e-ent(re

an% -$n%. In !ae thee e!(ritie are he+% a t$!!a#ita+ 'ain, #r$i%e% (!h e!(ritie are he+% a inetment - $(. In !ae thee

e!(ritie a ne) he+% a t$!


54/111

- I(e $* hare - re(+tin' $* ama+'amate% !$m#an in +ie( $* hare he+% in the %emer'e% $r

ama+'amatin' !$m#an #r$i%in' in !ae $* ama+'amati$n, ama+'amati$n !$m#an in In%ian

!$m#an

! an tran*er - )a $* !$neri$n $* -$n% $r %e-ent(re $* a !$m#an int$ hare $r

%e-ent(re $* that !$m#an in !ae $* a an% - a-$e, i* the re(+tin' $)ner e++ the !a#ita+

at (-e9(ent+, the !$t $* a!9(iiti$n ha++ -e %eeme% t$ -e the !$t at )hi!h the !a#ita+ aet)a a!9(ire - the #rei$( $)ner. In !ae $* %emer'er, it ha++ -e the #$rti$n $* the !$t )hi!h

-ear t$ the t$ta+ !$t the ame #r$#$rti$n a the net


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?$t $* $ne th$(an% -$n( hare ni+

L$n' term !a#ita+ 1, 1D

"EMAT SER/ICES

?$m#an $**erin'


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Nirma+ 5an' i a re'itere% mem-er /e#$it$r #arti!i#ant $* ?/SL.

In thi tem, #hi!a+ e!(rit h$+%in' are !$nerte% int$ e+e!tr$ni! $r in $ther )$r%,

%emateria+i@e% h$+%in'.

,h9 NIRAM( BANG "emat Acco*nt=

/emat A? *ree $#en.

/emat a!!e thr$('h internet an% #h$ne.

P$rt*$+i$ a+(ati$n $n the a!!$(nt tatement.

On+ine e"e!(ti$n $* trana!ti$n at -ran!he.

S#e!ia+ rate *$r t$! maret interme%iarie an% (- -r$er.

Trana!ti$n (#%ate *r$m -a!


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"ematerialiDation o+ !hare!

At $( re9(et )e arran'e t$ !$nert $(r #hi!a+ h$+%in' int$ e+e!tr$ni! *r$m. T$ %$ thi

)$(+% re9(ire t$ $#en an a!!$(nt )ith ?/SL thr$('h ( !a++e% >5ene*i!iar A!!$(nt in the

name an% t+e in )hi!h the hare are he+% an% +$%'e the hare !erti*i!ate )ith ( a!!$m#anie%

- a %emateria+i@e% re9(et *r$m, e#arate *$r ea!h !ri#.

;$( are re9(ire% t$ $n+ mae (re that ?/SL ha a%mitte% that !ri# *$r %emateria+i@ati$n. An

(#t$ %ate +it )i++ -e #r$i%e% t$ $( )hi!h )i++ -e !$ntant+ (#%ate%.

RematerialiDation

;$( hae the $#ti$n t$ !$nert $(r e+e!tr$ni! hare -a! t$ #hi!a+ hare.

Pledge#9othecation

;$( !an a+$ aai+ a'aint $(r e+e!tr$ni! hare. Thi #r$!e i a+$ m(!h *ater than in the

!ae $* #hi!a+ hare.


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#EA" O$$ICE'


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F6@1 )hata* 6*ilding1 +loor1 Alke!h dine!h mo69 marg +ort1 M*m6ai-

SMS >5ANG TO 4B4B

E


60/111

MANA"ATOR% "OCUMENT'

H- PROO$ $O I"ENTIT% .$or indi8id*al @)arta @ Sole rorietor @ A*thoriDed er!on .!0 +or

Partner!hi1 cororate and Tr*!t0

Ph$t$!$# $* PAN !ar%

H- PROO$ O$ A""RESS .$or indi8id*al @ )arta @ Sole rorietor @ A*thoriDed er!on .!0

+or Partner!hi!1 Cororate and Tr*!t0Ph$t$!$# $* an $ne $* the *$++$)in'Pa#$rt, 6$ter I/ ?ar%, /riin' +i!ene, 5an Pa-$$, Rent A'reement, Rati$n ?ar%,

?(rrent Te+e#h$ne 5i++, ?(rrent E+e!tri! 5i++, =+at Maintenan!e 5i++, an% ?erti*i!ate I(e%

- em#+$er re'itere% (n%er MAPIN, In(ran!e P$+i!.

- BAN) AN" "P PROO$'I. Letter *r$m !+ient -aner !erti*in' the a!!$(nt n(m-er an% the #eri$% *r$m )hi!h the

a!!$(nt in $#erati$n a #er #re!ri-e% *$rmat.II. ?$# $* a #a -$$ -an tatement !$ntainin' name $* the !+ient

III. ?$# $* !(rrent trana!ti$n tatement h$+%in' tatement !erti*i!ati$n - /P !$ntainin' the

name $* /P an% !+ient

- PROO$ O$ INCOME AN" ASSETS'I. ?$# $* the a+ar $* the !$ntit(ent *$r the +at m$nth

II. In!$me ta" tatement *$r the +at 2 *inan!ia+ earIII. Aet +ia-i+it tatementI6. ?$# $* the a+(e !erti*i!ate in !ae $* imm$a-+e #r$#ert

- $OR MINORS'In a%%iti$na+ t$ the a-$ementi$ne% %$!(ment, the *$++$)in' %$!(ment )$(+% a+$ -e

re9(ire% *$r min$r.I. 5irth !erti*i!ate $* Min$r.

- A""ITIONA( "OCUMENTS $OR NONIN"I/IUA(S'


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I. ?$# $* the -a+an!e heet *$r the +at 2 *inan!ia+ ear !$#ie $* ann(a+ -a+an!e heet t$

-e (-mitte% eer earII. ?$# $* +atet hare h$+%in' #attern in!+(%in' +it $* a++ th$e h$+%in' m$re than in the

hare !a#ita+ $* the !$m#an, %(+ !erti*ie% - the !$m#an e!retar )h$+e time

/ire!t$rM/. !$# $* (#%ate% hareh$+%in' #attern t$ -e (-mitte% eer earIII. ?$#ie $* the mem$ran%(m an% arti!+e $* a$!iati$n in !ae $* a !$m#an -$%

!$r#$rate $r #artnerhi# %ee% in !ae $* a #artnerhi# *irmI6. ?$# $* the Re$+(ti$n $* 5$ar% $* /ire!t$r a##r$in' #arti!i#ati$n in e9(it

%eriatie %e-t tra%in' an% namin' a(th$ri@e% #er$n *$r %ea+in' in e!(ritie.6. Ph$t$'ra#h $* #artner)h$+e time %ire!t$r, in%ii%(a+ #r$m$ter h$+%in' $r m$re,

either %ire!t+ $r in%ire!t+, in the hareh$+%in' $* the !$m#an an% $* #er$n a(th$ri@e%

t$ %ea+ in e!(ritie.6I. Net )$rth !erti*ie% - ?hartere% a!!$(ntant.6II. /e!+arati$n $n +etterhea% $* *irm a #er #re!ri-e% *$rmat *$r $+e #r$#riet$rhi# an%

#artnerhi# =irm.

H- BASIC RIS)S IN/O(/E" IN TRA"ING ON T#E STOC)

E4C#ANGE .E:UIT% AN" OT#ER INSTRUMENT0

H-H O+ higher 8olatilit9'6$+ati+it re*er t$ the %nami! !han'e in #ri!e that e!(ritie (n%er'$ )hen tra%in'

a!tiit !$ntin(e $n the St$! E"!han'e. Genera++, hi'her the $+ati+it $* a

e!(rit!$ntra!t, 'reater i it #ri!e )in'.There ma -e n$rma++ 'reater $+ati+it in thin+ tra%e% e!(ritie!$ntra!t than in a!tie

e!(ritie!$ntra!t. A a re(+tO* $+ati+it, $(r $r%er ma $n+ -e #artia++ e"e!(te% $r n$t e"e!(te% at a++.Or the #ri!e at )hi!h $(r $r%er '$t e"e!(te% ma -e (-tantia++ %i**erent *r$m the +at

tra%e% #ri!e $r !han'e (-tantia++ therea*ter, re(+tin' in n$ti$na+ $r rea+ +$e.

H- Ri!k o+ lo*idit9'Li9(i%it re*er t$ the a-i+it $* maret #arti!i#ant t$ -( an% $r e++ e!(ritie !$ntra!t

e"#e%iti$(+ at a !$m#etitie #ri!e an% )ith minima+ #ri!e %i**eren!e.Genera++, it i a(me% that m$re the n(m-er $r $r%er aai+a-+e in a maret, 'reater i the

+i9(i%it.Li9(i%it i im#$rtant -e!a(e )ith 'reater +i9(i%it, it i eaier *$r inet$r t$ -( an%$r

e++ e!(ritie !$ntra!t )i*t+ an% )ith minima+ #ri!e %i**eren!e, an% a a re(+t,

inet$r are m$re +ie+ t$ #a $r re!eie a !$m#etitie #ri!e *$r e!(ritie!$ntra!t

#(r!hae% $r $+%.There ma -e a ri $* +$)er +i9(i%it in $me e!(ritie!$ntra!t a !$m#are% t$ a!tie

e!(ritie!$ntra!t. A a re(+t, $(r $r%er ma $n+ -e #artia++ e"e!(te%, $r ma -e

e"e!(te% )ith re+atie+ 'reater #ri!e %i**eren!e $r ma n$t -e e"e!(te% at a++.


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H- 5(in'Se++in' )ith$(t intenti$n $* 'iin' an% $r tain' %e+ier $* a e!(ritie, a #art $* a%a tra%in' trate', ma a+$ re(+t int$ +$e, -e!a(e in (!h a it(ati$n, t$! ma

hae t$ -e $+%#(r!hae% at a +$)hi'h #ri!e, !$m#are% t$ the e"e!(te% #ri!e +ee+, $

a n$t t$ hae an $-+i'ati$n t$ %e+ierre!eie a e!(rit.

H- Ri!k! o+ +imit $r%er, >t$# +$ $r%er

et!. The #+a!in' $* (!h $r%er e.'., >t$# +$ +imit $r%er )hi!h are inten%e% t$ +imit+$e t$ !ertain am$(nt ma n$t -e e**e!tie man a time -e!a(e ra#i% m$ement in

maret !$n%iti$n ma mae it im#$i-+e t$ e"e!(te (!h $r%er..

H--H A >maret $r%er )i++ -e e"e!(te% #r$m#t+, (-3e!t t$ aai+a-+e $* $r%er $n $##$ite

i%e, )ith$(t re'ar% t$ #ri!e an% that, )hi+e the !(t$mer ma re!eie a #r$m#t $* a

>maret $r%er, the e"e!(ti$n ma -e at aai+a-+e #ri!e $* $(ttan%in' $r%er, )hi!h

ati* the $r%er 9(antit, $n #ri!e time #ri$rit. It ma -e (n%ert$$% that thee #ri!e

ma -e i'ni*i!ant+ %i**erent *r$m the +at tra%e% #ri!e $r the -et #ri!e in that e!(rit.

H-- A >+imit $r%er )i++ -e e"e!(te% $n+ at the time >+imit #ri!e #e!i*ie% *$r the $r%er $r a -etter #ri!e. H$)eer, )hi+e the !(t$mer re!eie #ri!e #r$te!ti$n, there i a #$i-i+it

that the $r%er ma n$t -e e"e!(te% at a++.

H-- A t$# +$ $r%er i 'enera++ #+a!e% >a)a *r$m the !(rrent #ri!e $* a t$! !$ntra!t,

an% (!h $r%er 'et a!tiate% i* an% )hen t$!!$ntra!t rea!he, $r tra%e thr$('h, the

t$# #ri!e.Se++ t$# $r%er are entere% $r%inari+ -e+$) the !(rrent #ri!e, an% -( t$# $r%er are

entere% $r%inari+ a-$e the !(rrent #ri!e. 8hen the t$! rea!he the #re


63/111

H- Ri!k o+ Ne< Anno*ncement!'

I(er mae ne) ann$(n!ement that ma im#a!t the #ri!e $* the e!(ritie!$ntra!t. Thee

ann$(n!ement ma $!!(r %(rin' tra%in', an% )hen !$m-ine% )ith +$)er +i9(i%it an% hi'her

$+ati+it, ma (%%en+ !a(e an (ne"#e!te% #$itie $r ne'atie m$ement in the #ri!e $* the

e!(rit!$ntra!t.

H-K Ri!k o+ R*mor!'

R(m$r a-$(t !$m#anie at time *+$at in the maret thr$('h )$r% $* m$(th, ne)#a#er,

)e-ite $r ne) a'en!ie, et!. the inet$r h$(+% -e )ar $* an% h$(+% %eit *r$m a!tin' $n

r(m$r.

H-L S9!tem Ri!k'

Hi'h $+(me tra%in' )i++ *re9(ent+ $!!(r at the maret $#enin' an% -e*$re maret !+$e. S(!h

hi'h $+(me ma a+$ $!!(r at an #$int in the %a. Thee ma !a(e %e+a in $r%er e"e!(ti$n

$r !$n*irmati$n.

a-L-H /(rin' #eri$% $* $+ati+it, $n a!!$(nt $* maret #arti!i#ant !$ntin($(+ m$%i*in'

their $r%er 9(antit $r #ri!e $r #+a!in' *reh $r%er, there ma -e %e+a in $r%er

e"e!(ti$n an% it !$n*irmati$n.

a-L- Un%er !ertain maret !$n%iti$n, it ma -e %i**i!(+t $r im#$i-+e t$ +i9(i%ate a #$iti$n in

the maret at a rea$na-+e #ri!e $r at a++, )hen there are n$ $(ttan%in' $r%er either $n

the -( i%e $r the e++ i%e, $r i* tra%in' i ha+te% in a e!(rit %(e t$ an a!ti$n $n

a!!$(nt $* (n((a+ tra%in' a!tiit $r t$! hittin' !ir!(it $r *$r an $ther rea$n.

a-F !9!tem@net


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8hi!h ma -e -e$n% the !$ntr$+ $* an% ma re(+t in %e+a in #r$!ein' $r n$t #r$!ein' -(

$r e++ $r%er either in #art $r in *(++

;$( are !a(ti$ne% t$ n$te that a+th$('h thee #r$-+em ma -e tem#$rar in nat(re, -(t )hen

$( hae $(ttan%in' $#en #$iti$n $r (ne"e!(te% $r%er, thee re#reent a ri -e!a(e $* $(r

$-+i'ati$n t$ ett+e a++ e"e!(te% trana!ti$n.

A *ar a =(t(re an% $#ti$n e'ment i !$n!erne%, #+eae n$te an% 'et $(re+* a!9(ainte% )ith

the *$++$)in' a%%iti$na+ *eat(re<

a- E++ect o+ 5(e8erage3 or 5Gearing3

The am$(nt $* mar'in i ma++ re+atie t$ the a+(e $* the %eriatie !$ntra!t $ the

trana!ti$n are +eera'e% $r 'eare%. /eriatie tra%in', )hi!h i !$n%(!te% )ith a re+atie+

ma++ am$(nt $* mar'in, #r$i%e the #$i-i+it $* 'reat #r$*it $r +$ in !$m#ari$n )ith the

#rin!i#a+ inetment am$(nt.

5(t trana!ti$n in %eriatie !arr a hi'h %e'ree $* ri. ;$( h$(+% there*$re !$m#+ete+

(n%ertan% the *$++$)in' e'ment -e*$re a!t(a++ tra%in' in %eriatie tra%in' an% a+$ tra%e

)ith !a(ti$n )hi+e tain' int$ a!!$(nt $ne !ir!(mtan!e, *inan!ia+ re$(r!e, et!.

I* the #ri!e m$e a'aint $(, $( ma +$e a #art $* $(r )h$+e mar'in e9(ia+ent t$ the

#rin!i#a+ inetment am$(nt in a re+atie+ h$rt #eri$% $* time. M$re$er, the +$ ma e"!ee%

the $ri'ina+ mar'in am$(nt.

A. =(t(re tra%in' in$+e %ai+ ett+ement $* a++ #$iti$n. Eer %a the $#en #$iti$n are

mare% t$ maret -ae% $n !+$in' +ee+ $* the in%e" ha m$e% a'aint $(, $( )i++ -e

re9(ire% t$ %e#$it the am$(nt $* +$ nati$na+ re(+tin' *r$m (!h m$ement.

5. Thi mar'in )i++ hae t$ -e #ai% )ithin a ti#(+ate% time *rame, 'enera++ -e*$re

!$mmen!ement $* tra%in' ne"t %at.

?. I* $( *ai+ t$ %e#$it the a%%iti$na+ mar'in - the %ea%+ine $r i* an $(ttan%in' %e-t

$!!(r in $(r a!!$(nt, the -r$ermem-er ma +i9(i%ate a #art $* $r the )h$+e #$iti$n

$r (-tit(te e!(ritie. In thi !ae, $( )i++ -e +ia-+e *$r an +$e in!(rre% %(e t$ (!h

!+$e


65/111

E. In $r%er t$ maintain maret ta-i+it, the *$++$)in' te# ma -e a%$#te% !han'e in the

mar'in rate in!reae in the !ah mar'in rate $r $ther. Thee ne) mea(re ma a+$ -e

a##+ie% t$ the e"itin' $#en interet. In (!h !$n%iti$n, $( )i++ -e re9(ire% t$ #(t (#

a%%iti$na+ mar'in $r re%(!e $(r $#ti$n.

=. ;$( m(t a $(r -r$er t$ #r$i%e the *(++ %etai+ $* the %eriatie !$ntra!t $( #+an

t$ tra%e i.e. the !$ntra!t #e!i*i!ati$n an% the a$!iate% $-+i'ati$n.

-- Ri!k o+ Otion #older!'

1. An $#ti$n h$+%er r(n the ri $* +$in' the entire am$(nt #ai% *$r the $#ti$n in a

re+atie+ h$rt #eri$% $* time. Thi ri re*+e!t the nat(re $* an $#ti$n a a )atin' aet

)hi!h -e!$me )$rth+e )hen it e"#ire.

2. An $#ti$n h$+%er )h$ neither e++ hi $#ti$n in the e!$n%ar maret n$r e"er!ie it

#ri$r t$ it e"#irati$n )i++ ne!ear +$e hi entire inetment in the $#ti$n. I* the #ri!e

$* the (n%er+in' %$e n$t !han'e in the anti!i#ate% %ire!ti$n -e*$re the $#ti$n e"#ire t$

an e"tent (**i!ient t$ !$er the !$t $* the $#ti$n, the inet$r ma +$e a++ $r a

i'ni*i!ant #art $* hi inetment in the $#ti$n.

. The e"!han'e ma im#$e e"er!ie retri!ti$n an% hae a-$+(te a(th$rit t$ retri!t the

e"er!ie $* $#ti$n at !ertain time in #e!i*ie% !ir!(mtan!e.

-H Ri!k o+ Otion ,riter!'

I* the #ri!e m$ement $* the (n%er+in' i n$t the anti!i#ate% %ire!ti$n, the $#ti$n )riter r(n the

ri $* +$in' (-tantia+ am$(nt.

IN/ESTOR&S RIG#TS AN" OB(IGATIONS'


66/111

=r$m the tra%e %ate (#t$ *ie tra%in' %a. 8here tra%e $n the )e-ite, %$ n$t ta++ )ith the

%etai+ menti$ne% in the !$ntra!t n$te, imme%iate+ 'et in t$(!h )ith the inet$r 'riean!e !e++

$* NSE5SE.

-H-H En(re that #ament%e+ier $* e!(ritie a'aint i 'ien t$ the !$n!erne% mem-er)ithin $ne )$rin' %a #ri$r t$ the %ate $* #a


67/111

tra%in' tem $* NSE5SE, en(re that $( +$%'e a !+aim )ith NSE5SENS??L !+earin'

H$(e )ithin the ti#(+ate% #e$#+e an% )ith the (##$rtin' %$!(ment.

-H-K In !ae )here a mem-er i e"#e++e% *r$m tra%in' mem-erhi# $r %e!+are% a %e*a(+ter,

NSE5SE 'ie a #(-+i! n$ti!e initin' !+aim, i* an, *r$m inet$r. In !ae $* !+aim, re+atin'

t$ >trana!ti$n e"e!(te% $n the tra%in' tem $* NSE5SE, en(re that $( +$%'e a !+aim )ith

NSE5SE )ithin the ti#(+ate% #eri$% an% )ith the (##$rtin' %$!(ment.

-H-L ?+aim a'aint a %e*a(+tere"#e++e% mem-er *$(n% t$ -e a+i% a #re!ri-e% in the re+eant

R(+e5e


68/111

In !ae $* na %i#(te )ith the mem-er, the ame ha++ -e (-3e!t t$ ar-itrati$n a #er the

-e+a)re'(+ati$n $* the e"!han'e.

- =$r ri'ht an% $-+i'ati$n $* the !+ient, #+eae re*er t$ Anne"(re


69/111

- A!t $* '$%, *ir, *+$$%, )ar, a!t $* i$+en!e, $r an $ther imi+ar $!!(rren!e $r

! An in!i%enta+, #e!ia+ $r !$ne9(entia+ %ama'e in!+(%in' )ith$(t +imitati$n $* +$ $r

#r$*it.

HA- Cancellation or Modi+ication o+ Order!'

The e"e!(ti$n $r $r%er !an!e++ati$n $r m$%i*i!ati$n i n$t '(arantee%. ?an!e++ati$n $* $r%er i

#$i-+e $n+ i* the $ri'ina+ remain #en%in' at the e"!han'e. Un+e $ther)ie #e!i*ie% -

SIS5L, an $r%er n$t e"e!(te% at the en% $* the %a ha++ tan% !an!e++e%.

- S*++icient Margin Maintenance +or Placing Order!'

The !+ient hae t$ maintain (**i!ient mar'in -e*$re #+a!in' the $r%er. The re9(irement $* mar'in )i++ -e intimate% - SIS5L *r$m time t$ time %e#en%in' $n the maret !$n%iti$n, r(+e

*rame% - the !$n!erne% E"!han'e $r SE5I, an% aement $* the !+ient - SIS5L.

Thi in*$rmati$n )$(+% -e !$mm(ni!ate% t$ the !+ient $ra++ $r $er the #h$ne $r in )ritin' an%

%e!ii$n $* SIS5L )$(+% -e *ina+ in hi re'ar%. The mar'in )$(+% ar *r$m 0 t$ 100 $* the

$#en #$iti$n $* the !+ient.

O#en #$iti$n )$(+% mean a++ #en%in' $r%er an% trana!ti$n, -$th #(r!hae an% a+e, $* the

!+ient )hi!h are either (n#ai% $r (n%e+iere%, re#e!tie+.

H$)eer, the !+ient )$(+% -e re#$ni-+e *$r a++ $* their $r%er in!+(%in' an $r%er )hi!h

e"!ee% the +imit aai+a-+e -ae% $n their aai+a-+e mar'in.

The !+ient h$(+% $n a re'(+ar -ai en9(ire a-$(t the mar'in re9(irement t$ en(re m$$th

trana!ti$n. SIS5L ma re9(ire the !+ient t$ imme%iate+ %e#$it *(n% $r !$++atera+ int$ their

a!!$(nt #ri$r t$ an a##+i!a-+e ett+ement %ate in $r%er t$ a(re %(e #er*$rman!e $* their $#en

!$ntra!t(a+ !$mmitment.

I* the !+ient %$e n$t #r$i%e the a%%iti$na+ !$++atera+, the !+ient here- (n%ertan% an%

n$)+e%'e that SIS5L ha the ri'ht t$ e++ an $r a++ the e!(ritie an% $ther #r$#ertie aai+a-+e)ith it an% !an !an!e+ an $r a++ $#en $r%er an%$r !+$e an $r a++ $(ttan%in' t$ raie the

re9(ire% mar'in.

The !+ient )i++ -e +ia-+e t$ -ear an +$ ariin' $(t $* the ame. ?+ient hae t$ #a mar'in *$r

the $#en #$iti$n the ma hae at an #$int $* time in the *$++$)in' manner


70/111

a. Mar'in in the *$rm $* m$ne %e#$it ?ah Mar'in

-. Mar'in in the *$rm $* #e!i*ie% e!(ritie t$ -e !a+!(+ate% at a #e!i*ie% #er!enta'e $* a+(e

$* the e!(ritie %e#en%in' $n the !ri# a #e!i*ie% - SIS5L *r$m time t$ time. A++

%e+ierie a'aint mar'in are t$ -e ma%e - tran*errin' the hare *r$m the %e!+are% /P

a!!$(nt $* the !+ient t$ the %ei'nate% -ene*i!iar a!!$(nt $* SIS5L

=$r NSE !ah e'ment


71/111

Part %e+ier $* e!(ritie -ae% $n #art #ament )i++ n$t -e a++$)e%. An err$r in 'iin'

the %etai+ re'ar%in' %e*a(+t /P a!!$(nt )i++ -e !+ient re#$ni-i+it an% he )i++ n$t h$+%

SIS5L re#$ni-+e *$r an +$ %(e t$ tran*er $* hare int$ the a!!$(nt a menti$ne%

a-$e.The intr(!ti$n *$r %e+ier t$ !+ient a!!$(nt )i++ -e i(e% )ithin time !he%(+e #e!i*ie%

- the !$n!erne% E"!han'e, #rea+ent at the time. I* the %e+ier !$(+% n$t -e ma%e $n the

%(e %ate, %(e t$ n$n#ament $* %(e *r$m the !+ient then the %e+ier )i++ -e ma%e )ithineen %a $* #ament $* the %(e.5(t, n$n#ament *$r %(e %ate ma re(+t in a+e $* (!h #(r!hae% e!(ritie at the !$t an%

#ena+t $* the !+ient. In !ae the e!(ritie are (n#ai% $n the #a


72/111

!(rrent ett+ement then the hare #(r!hae% in ear+ier ett+ement, the re!ei#t $* the ame ma -e

(e% t$ meet #a


73/111

/O(UNTAR% "OCUMENTS NO- H

a0 In !ae the $#en #$iti$n i either 9(are% neither $** n$r !$nerte% t$ %e+ier - !+ient

)ithin the ti#(+ate% time.

60 In !ae the mar t$ maret +$ $n the $#en #$iti$n ha rea!he% the ti#(+ate%

#er!enta'e $* the mar'in $r re%(!e the Mar t$ Maret +$.

In a++ $ther !ae )here the mar'in $r e!(ritie #+a!e% - the !+ient *ai+ $rt $* the

re9(irement $r )here the +imit 'ien t$ the !+ient ha -een -rea!he% $r the !+ient ha

%e*a(+te% $n hi e"itin' $-+i'ati$n.

?+ient a'ree that a+th$('h the a(t$ 9(are $** tri''er #$int i #re%e*ine% (-e9(ent t$

)hi!h SIS5L !$(+% e"er!ie it %i!reti$n t$ !arr $(t the 9(are $** )ithin a rea$na-+e

#eri$% $* time an% the !+ient a'ree t$ -ear the +$ -ae% $n a!t(a+ e"e!(te% #ri!e.

F- Inter client a*ction'

In !ae, in an ett+ement, )here -$th the #(r!hae an% a+e #$iti$n *$r an !ri# are +imite%

-et)een t)$ $r m$re $* $(r i.e. SIS5L !+ient $n+, (!h that the net #$iti$n t$ the !$n!erne%

E"!han'e in that ett+ement an% *$r that !ri# i >NIL.

In (!h a it(ati$n i* there i an h$rt %e+ier then the re(+tant a(!ti$n #$iti$n )i++ -e inter

!+ient in!e -$th the +e' i.e. the #art %e+ier h$rt an% the !$rre#$n%in' #(r!haer are -$th

SIS5L !+ient.

=$r %eterminin' the a(!ti$n #ri!e, in thi it(ati$n, the hi'het $* the *$++$)in' #ri!e )i++ -e

!$ni%ere%, the '(i%in' #rin!i#a+ -ein' >#(r!haer h$(+% n$t +$$e

a The !$n!erne% E"!han'e 8ei'hte% Aera'e #ri!e 8AP *$r that #arti!(+ar !ri# in

that #arti!(+ar a(!ti$n ett+ement, taen *r$m the !$n!erne% E"!han'e /$)n+$a%.

- Hi'het #(r!hae #ri!e #+( 1.00 %e+ier -r$era'e, #ai% *$r - the #(r!haer )h$

hae n$t -een %e+iere% the hare %(e t$ !$rre#$n%in' h$rt %e+ier *$r that !ri# in

that #arti!(+ar ett+ement.

! In !ae 8AP i n$t aai+a-+e, then a(!ti$n %a hi'h #ri!e an% tra%in' %a hi'h #ri!e

are !$m#are% )ith the hi'het #(r!haer #ri!e a menti$ne% in - a-$e, an% the

hi'het i taen a a(!ti$n #ri!e.


74/111

It ma -e n$te% t$ the a-$e a(!ti$n #ri!e, a #ena+t X 1.DD )i++ -e +eie% in #(r(an!e t$

!+a(e 10a $* the term an% !$n%iti$n.

A tarte% a-$e, inter

-ein' !har'e% *$r a a(!ti$n tra%e.

Hen!e %e-it!re%it n$te are i(e% *$r inter

A(!ti$n !$ntra!t n$te )i++ n$t -e i(e% *$r inter

tra%e in tr(e ene $* the term, -(t mere+ in$+e %e-itin' an% !re%itin' the re#e!tie !+ient

a!!$(nt.

- S>*are O++ Oen Po!ition'

The !+ient a'ree that SIS5L )$(+% hae the %i!reti$n t$ 9(are $** the #$iti$n $* the !+ient inthe *$++$)in' !ir!(mtan!e

H- Charge!'

10. a. 5ROKERAGE, ?OMMISSION AN/ =EES

i The !+ient a'ree t$ #a the mem-er -r$era'e, !$mmii$n, *ee, eri!e ta" an% the $ther ta"e an% trana!ti$n e"#ene a the e"it *r$m time t$ time an% a the a##+ t$ the ?+ient

A!!$(nt an% trana!ti$n an% t$ the eri!e that the Mem-er ren%er t$ the !+ient.

The !+ient a+$ a'ree that he mem-er ma %e%(!t an% a##r$#riate an $* the a*$reai% am$(nt

*r$m an am$(nt #aa-+e - the mem-er t$ the !+ient.

ii A !he%(+e $* the !(rrent -r$era'e, *ee an% !$mmii$n, a##+i!a-+e eri!e an% $ther

ta"e an% $ther trana!ti$n e"#ene ha++ -e #r$i%e% - the Mem-er $n the Mem-er 8e-

ite, an% the !+ient a'ree t$ ee# hime+* (#%ate% in re#e!t there$*.

H- 6- $AI(URE TO $I/E "E(I/ERIES O$ SECURITIES'

A %e+ae% %e+ier !har'e )i++ -e +eie% $n the a+(e% $* e!(ritie %e+iere% h$rt. The !har'e

)i++ -e X 1.00 $n the a(!ti$ne% a+(e (-3e!t t$ minim(m $* R. 10.00.


75/111

H- c- $AI(URE TO PA% $UN"S'

A #ena+t )i++ -e +eie% at a !ertain #er!enta'e at the %i!reti$n $* SIS5L )ith ma"im(m rate $*

X .1 #er %a $n the am$(nt %e*a(+te% *r$m the %ate )hen the #ament i %(e ti++ the %a.

8hen the #ament i re!eie% either - 9(arin' $** the #$iti$n $r - the e++in' $* e!(ritie

+in' )ith SIS5L $r )hen the *(n% are a!t(a++ #ai% the !+ient. =$r the #(r#$e $* a!ertainin'

am$(nt %e*a(+te%, an !re%it in !ah mar'in a! $n+ )i++ a+$ -e !$ni%ere%.

HH- Re!er8e Bank o+ India G*ideline! .RBI0

The !+ient i a)are that a #er the R5I '(i%e+ine N$n Rei%ent In%ian NRI an% #er$n $* In%ian Ori'in PIO are a++$)e% t$ inet in the e!$n%ar !a#ita+ maret in In%ia thr$('h the

#$rt*$+i$ inetment !heme PIS.

Thee inetment are '$erne% an% m$nit$re% $n %ai+ -ai - the Reere 5an $* In%ia. On

rea!hin' the a''re'ate !ei+in' +imit a *i"e% - R5I *r$m time t$ time, the R5I a%i!e a++

%ei'nate% -an -ran!he t$ t$# #(r!hae $n -eha+* $* their NRIPIO !+ient.

The !+ient here- a'ree t$ ee# a-reat $* the !ei+in' +imit $n inetment a #(-+ihe% -

R5I an% a(th$ri@e SIS5L t$ reere the trana!ti$n imme%iate+ $n hi -eha+* i* (!h

trana!ti$n -rea!he the !ei+in' +imit.

H- A*thoriDation +or OnGoing Acco*nt'

The !+ient a'ree that he i %eir$( $r re'(+ar tra%in' trana!ti$n thr$('h SIS5L $n an $n'$in'

-ai. The !+ient th( a(th$ri@e SIS5L t$ a%3(t)ithh$+% hi *(n% an%$r e!(ritie #a$(t

*r$m the !$n!erne% E"!han'e )ith *(t(re *(n% an%$r e!(ritie #a


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In the eent $* na #r$ii$n $* thi a'reement -ein' he+% t$ -e $r -e!$min' ina+i%,

(nen*$r!ea-+e $r i++e'a+ *$r an rea$n, (!h ina+i%it, n$n


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=(rther SIS5L reere the ri'ht t$ en% the (n!$++e!te% !$ntra!t n$te t$ the !+ient %e!+are%

a%%re thr$('h U.?.P !$(rieran $ther mean $* #$t an% the re(+tant #$ta+ !har'e )i++ -e

%e-ite% t$ the !+ient ett+ement a!!$(nt.The !+ient (n%ertan% that it i their re#$ni-i+it t$ reie) (#$n *irt re!ei#t a++ !$n*irmati$n,

ett+ement, n$ti!e an% $ther !$mm(ni!ati$n !$ntaine% therein an% ha++ -e -in%in' (#$n the

!+ient (n+e !+ient %$ n$t $-3e!t in )ritin' )ithin 24 h$(r $* re!eiin' (!h %$!(ment.

LA- I(e $* /i'ita+ Si'ne% ?$ntra!t N$te in E+e!tr$ni! M$%eThe !+ient (n%ertan% that !$ntra!t n$te )i++ -e %eeme% t$ hae -een %e+iere% an%

a!n$)+e%'e% - the !+ient )hen it i ent t$ e/i'ita+

Si'nat(re the term hain' the meanin' a 'ien in i ))).e-i.'$.in, ii ))).nein%ia.!$m,

iii ))).-ein%ia.!$m.

LB- )hereer the E?NS hae n$t -een %e+iere% t$ !+ient $r ha -een re3e!te% -$(n!in' $* mai+ - the e


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'enera+ maret !$n%iti$n. Mar'in #er!enta'e !an -e !han'e% %(rin' the +i*e $* the

!$ntra!t %e#en%in' $n the $+ati+it in the maret.

iii. The !+ient ha++ -e re9(ire% t$ #a an initia+ mar'in (#*r$nt $n $r -e*$re !reatin' a

#$iti$n in an %eriatie !$ntra!t an% *(rther the !+ient h$(+% #r$i%e a%%iti$na+

mar'in m$ne )hen !a++e% (#$n t$ %$ $ a re9(ire% in re#e!t $* #$iti$n taen - himin thi e'ment SIS5L ha the ri'ht t$ re3e!t $r%er i* the re9(ire% mar'in ha n$t -een

%e#$ite%.

i. The !+ient ha++ #a the %ai+ mar t$ maret +$ *$r a++ m$(r #$iti$n in in%e" an%

in%ii%(a+ t$! *(t(re !$ntra!t an% #a the *ina+ ett+ement +$ $n e"#ir $* the in%e"

an% in%ii%(a+ t$! *(t(re !$ntra!tin%e" !$ntra!t a the !ae ma -e a !har'e% -

NS??L t$ SIS5L - D.00a.m. Ne"t %a.

. The !+ient ha++ #a the %ai+ #remi(m #aa-+e *$r a++ m$(r $#en #$iti$n in in%e"

an% in%ii%(a+ t$! $#ti$n !$ntra!t a !har'e% - NS??L t$ SIS5L -e*$re e"e!(ti$n

$* the !$ntra!t.

i. The !+ient ha++ #a the interim a )e++ a *ina+ e"er!ie ett+ement a+(e *$r a++ m$(r

h$rt #$iti$n $n in%ii%(a+ t$! $#ti$n !$ntra!t )hi!h ha -een ai'ne% a'aint him,

a !har'e% - NS??L $ SIS5L - en% $* ne"t %a.

ii. SIS5L i a(th$ri@e% t$ retain )ith them the MTM #r$*it, %ai+ #remi(m re!eia-+e,

interim e"er!ie ett+ement a+(e re!eia-+e $n *(t(re an% $#ti$n !$ntra!t an% ett+e

the ame $n m$nth+ -ai $r $n %eman% - the !+ient a*ter %e%(!tin' %(e, i* an.

iii. I* the !+ient hae -een are ma -e!$me (na-+e t$ meet, ati*, %i!har'e $r *(+*i++ an

$-+i'ati$n $r +ia-i+it $r !$mmitment $r na #art there$*, then SIS5L ma at an time

therea*ter an% )ith$(t 'iin' an n$ti!e t$ the !+ient !an -(, e++ $r !+$e $(t an #art

$r a++ $* the *(t(re an% $#ti$n !$ntra!t he+% in hi a!!$(nt )ith SIS5L.

An $r a++ (!h in!i%enta+ e"#ene in!(rre% - SIS5L in thi re'ar% )i++ -e reim-(re% - the

!+ient. I* the !+ient a*ter *(+*i++in' hi mar'in re9(irement *ai+ t$ meet hiher (n!rta++ie%

M2M +$ either in #art i* *(++ then the !$m#an )i++ !har'e #ena+t at a##r$#riate rate *$r meetin' the (n!rta++ie% M2M #a


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Ha- $*t*re!

i. =(t(re tra%in' in$+e ett+ement $* a++ #$iti$n. Eer %a the $#en #$iti$n are

mare% t$ maret -ae% $n the !+$in' +ee+ $* the in%e" an% the in%ii%(a+ t$! #ri!e. I*

the in%e" $r the in%ii%(a+ t$! #ri!e hae m$e% a'aint the !+ient, he )i++ -e re9(ire%

t$ %e#$it the am$(nt $* +$ nati$na+ re(+tin' *r$m (!h m$ement )ithin the

ti#(+ate% time #eri$%.

ii. In the *(t(re Maret *$++$)in' ett+ement $-+i'ati$n are t$ -e *(++ *i++e%.

• 5r$era'e< An trana!ti$n entere% int$ )i++ attra!t -r$era'e )hi!h )i++ -e %e-ite% *r$m

the !+ient a!!$(nt at the en% $* the %a.

• Pr$*it : +$ $n 9(are% $** #$iti$n.

• Pr$*it : +$ $n en% $* %a EO/ MTM $n $#en #$iti$n

• Seri!e ta" $n 5r$era'e, t(rn$er Ta" an% e!(ritie Trana!ti$n Ta".

iii. A++ *(t(re $-+i'ati$n are ett+e% - the e"!han'e $n TY1 -ai

HB- Otion!'

i. The *$++$)in' ett+ement $-+i'ati$n are t$ -e *(++ *i++e% in the $#ti$n e'ment<

• 5r$era'e An trana!ti$n entere% int$ )i++ attra!t -r$era'e )hi!h )i++ -e %e-ite%

*r$m the !+ient a!!$(nt at the en% $* the %a.

• Premi(m #aa-+e

• Or re!eia-+e

• Pr$*it $n e"er!ie

• L$ $n ai'nment

• Seri!e ta" $n 5r$era'e, t(rn $er ta" an% e!(ritie Trana!ti$n Ta".

ii. =$r $#ti$n !$ntra!t in !ae a !+ient ha a e++ #$iti$n, the !$ntra!t ma -e ai'ne% t$ him i.e.

the (n%er+in' )i++ hae t$ -e -$('ht in !ae $* PUT an% $+% in !ae $* !a++. H$)eer

in!e $#ti$n are !(rrent+ !ah ett+e%, the !+ient )$(+% hae t$ #a $r re!eie the m$ne.

iii. The ai'nment #r$!e in initiate% an% !$m#+ete+ %e!i%e% - the e"!han'e $n a ran%$m -ai.

Hen!e it i n$t ne!ear that the ai'nment )i++ tae #+a!e een i* the #$iti$n i in< the

m$ne.

HK- Additional Condition! In Relation To Electronic Order!


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a The !+ient !$n*irm that *r$m time t$ time he )$(+% !$ntin(e t$ rea% an% (n%ertan% the

e"!han'e #r$ii$n an% the term an% !$n%iti$n in re+ati$n t$ e+e!tr$ni! $r%er t$ -e

#+a!e% thr$('h SS5L 8e- Site.

- The !+ient )i++ -e entit+e% t$ a Uer Name, #a)$r% $r $ther i%enti*i!ati$n $r e!(rit !$%e

- )hateer name !a++e% )hi!h )i++ ena-+e him t$ ena-+e him t$ a!!e SIS5L tem $r

eri!e thr$('h SIS5L )e- ite *$r aai+in' $* the eri!e.

! The !+ient i a)are that SIS5L tem ite+* ran%$m+ 'enerate the Initia+ #a)$r%,

en!r#t an% #ae $n the #a)$r% t$ the !+ient, an% that SIS5L i n$t a)are $* the ame.

The !+ient a'ree an% (n%ertan% t$ imme%iate+ !han'e hi initia+ #a)$r% (#$n re!ei#t

there$*. The !+ient i a)are that (-e9(ent #a)$r% a+$ are n$t n$) $r aai+a-+e t$

SIS5L.

% The !+ient ha++ +$ $** *r$m the Nirma+ 5an'.!$m eri!e at an time the !+ient i n$t

a!!ein' $r (in' the Nirma+ -an'.!$m eri!e an% an +ia-i+it in!(rre% t$ the !+ient a a!$ne9(en!e t$ the !+ient n$t +$''in' $** the eri!e ha++ -e -$rne $+e+ - the !+ient.

e* The !+ient ha++ -e re#$ni-+e *$r ee#in' the (ername an% #a)$r% !$n*i%entia+ an%

e!(re an% ha++ -e $+e+ re#$ni-+e *$r a++ $r%er entere% an% trana!ti$n %$ne - an

#er$n )h$$eer thr$('h SIS5L tem (in' the !+ient (ername, an% #a)$r%

)hether $r n$t (!h #er$n )a a(th$ri@e% t$ %$ $.

' I* the !+ient i (na-+e t$ !han'e hi #a)$r% - rea$n $* hi hain' *$r'$tten hi

#a)$r% $r hi #a)$r% $r hi #a)$r% hain' -een (n a(th$ri@e% !han'e% - $me

$ther #er$n $r *$r an $ther rea$n then the !+ient ha++ imme%iate+ re9(et SIS5L in

)ritin' t$ %i!$ntin(e hi $+% #a)$r%. SIS5L tem ha++ 'enerate a ne) #a)$r% *$r

the !+ient )hi!h ha++ -e !$mm(ni!ate% t$ the !+ient.

h At n$ #$int in time ha++ SIS5L -e +ia-+e *$r an +$, )hether nati$na+ $r a!t(a+, that ma

-e (**ere% - the !+ient $n a!!$(nt $* the mi(e $* the #a)$r% an% the !+ient ha++ -e

+ia-+e an% re#$ni-+e *$r the ame.

i SIS5L ha++ n$t -e %eeme% t$ hae re!eie% an $r%er (n+e an% (nti+ it ha a!t(a++

re!eie% the $r%er in the $r%er


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SIS5L h$(+% n$t -e he+% re#$ni-+e *$r an in!$rre!t in*$rmati$n (##+ie% - the !+ient%(rin' the time $* re'itrati$n. The !+ient i th( re9(ete% t$ tae a%e9(ate !are in

#r$i%in' !$rre!t %etai+ (n%er a++ hea% i@. -an a!!$(nt %etai+, e

entit+e% t$ terminate thi a'reement $ +$n' a an am$(nt i #aa-+e $r e!(ritie are

%e+ier - the !+ient t$ SIS5L an% it ma n$t -e #$i-+e *$r SIS5L t$ 'ie a%an!e n$ti!e

$* (!h terminati$n $r (#eni$n t$ the !+ient.?+ient i'nat(re

INTERNET TRA"ING AGREEMENT

IN A""ITION TO T#E STOC) BRO)ER AN" C(IENT AGREEMENT1

RIS) "ISC(OSUE "OCUMENT 2 TERMS AN" CON"ITIONS T#E

$URT#ER C(AUSES $OR INERNET TRA"ING ARE AS $O((O,S


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<

T#E PARTIES #ERE TO AGREE AS UN"ER'

H- "E$INATION 2 INTERPRETATION'In thi a'reement, (n+e re#('nant t$ the !$nte"t $r meanin' there$*,1 8$r% an% e"#rei$n %e*ine% in Ba!ic&! in o*r


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- N$) )ith tan%in' anthin' tate% e+e)here in thi a'reement, the mem-er ma at an

time in it $+e %i!reti$n, #r$hi-it $r retri!t the !+ient a!!e t$ the (e $* the mem-er

8e- Site $r Seri!e an% the !+ient a-i+it t$ tra%e, )ith$(t an #ri$r n$ti!e an% )ith$(t

ai'nin' an rea$n )hat eer.

-K The mem-er an% the !+ient ha++ -e -$(n%e% - the #r$ii$n $* the e"!han'e $n )hi!h

the !$n!erne% trana!ti$n i a**e!te%.

- USER NAME AN" PASS,OR"

.1 The !+ient a!n$)+e%'e that he i *(++ a)are $* an% (n%ertan% the ri a$!iate% )ith

aai+in' $* a eri!e *$r r$(tin' $er the internet $r the te+e#h$ne in!+(%in' the ri $* mi(e

an% (na(th$ri@e% (e $* hi (ername, #a)$r% - a thir% #art an% the ri $* a #er$n ha!in'

int$ the !+ient a!!$(nt $n the Mem-er tem an% (na(th$ri@e% r$(tin' $r%er $n -eha+* $* the !+ient thr$('h the tem.

.2 The !+ient a!!e#t *(++ re#$ni-i+it *$r the m$nit$rin' an% a*e'(ar%in' $* the !+ient

a!!$(nt an% a'ree that he ha++ -e *(++ +ia-+e an% re#$ni-+e *$r an an% a++ (n a(th$ri@e% (e

an% mi(e $* hi #a)$r%, (ername, an% a+$ *$r an an% a++ a!t %$ne - an #er$n thr$('h

the mem-er tem $n the !+ient (ername in an manner )hat$eer.

. The !+ient i a+$ a)are that he ha the $#ti$n $* n$t aai+in' (!h *a!i+iteri!e. H$)eer,

-ein' *(++ a)are $* a++ ri, the !+ient %eire the !$nenien!e $* (!h *a!i+it $* tranmittin'

$r%er an% intr(!ti$n $er the internet an% te+e#h$ne an% ha there*$re $#te% *$r (!h *a!i+it$* hi $)n *ree !h$i!e an% i )i++in' an% a'reea-+e t$ -ear a++ a$!iate% ri, re#$ni-+e an%

+ia-i+it.

.4 The !+ient ha++ en(re that he i the $n+ a(th$ri@e (er $* the (ername, #a)$r%. The

mem-er ha++ -e entit+e% t$ #re(me that an $r%er $r intr(!ti$n entere% $r !$mm(ni!ate%

(in' the !+ient (ername.

Pa)$r% i the !+ient $)n $r%er $r intr(!ti$n that $* the !+ient %(+ a(th$ri@e%

re#reentatie. The !+ient )i++ -e *(++ re#$ni-+e an% +ia-+e *$r, an% )i++ #a $r reim-(re t$ the

mem-er a a !$ne9(en!e $* a!!e an% $r (e $* the e"#ene in!(rre% - the mem-er

tem $r eri!e - an thir% #art (in' the !+ient a!!$(nt, mem-er tem $r eri!e -

an thir% #art (in' the !+ient (ername, #a)$r%.

. 8ith$(t #re3(%i!e t$ the #r$ii$n $* the a*$reai% !+a(e, the !+ient ha++ imme%iate+

n$ti* the mem-er in )ritin' )ith *(++ %etai+ i*

a He %i!$ere% $r (#e!t (na(th$ri@e% a!!e thr$('h hi (ername, #a)$r%.


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- He n$ti!e %i!re#an!ie that mi'ht -e attri-(ta-+e t$ (na(th$ri@e% a!!e.

! He *$r'et hi #a)$r%.

% He %i!$er a e!(rit *+a) in the mem-er tem, $r

e He %$e n$t, $n the ame %a a the re!ei#t $r e"e!(ti$n $* an $r%er - the mem-er&

re!eie a mea'e *r$m the mem-er in%i!atin' that the $r%er ha -een re!eie% $r,

e"e!(te%&

* He %$e n$t re!eie a !$n*irmati$n $* an e"e!(ti$n& $r re!eie !$n*irmati$n $* an $r%er

an% $r e"e!(ti$n )hi!h he %i% n$t #+a!e& $r re!eie ina!!(rate in*$rmati$n in !+ient

a!!$(nt -a+an!e, e!(ritie #$iti$n $r trana!ti$n hit$r.

-K In an $* the a-$e eent #e!i*ie% in !+a(e.

-L The !+ient ha++ imme%iate+ !han'e hi #a)$r%. H$)eer, i* the !+ient i (na-+e t$

!han'e hi #a)$r% - #er$n $* hi hain' *$r'$tten hi #a)$r% $r hi #a)$r%

hain' -een (na(th$ri@e% !han'e% - $me $ther #er$n. Or *$r an $ther rea$n than the

!+ient ha++ imme%iate+ re9(et the mem-er in )ritin' t$ %i!$ntin(e hi $+% #a)$r%&

an% there(#$n the mem-er ha++ !a(e the mem-er tem t$ %i!$ntin(e the (e $* the

!+ient $+% #a)$r% an% the mem-er tem ha++ 'enerate a ne) #a)$r% *$r the !+ient

)hi!h ha++ -e !$mm(ni!ate% t$ the !+ient. At n$ #r$*it in time ha++ the mem-er -e +ia-+e

*$r an +$, )hether n$ti$na+ $r a!t(a+, that ma -e (**ere% - the !+ient $n a!!$(nt $* the

mi(e $* the #a)$r% an% the !+ient ha++ -e +ia-+e an% re#$ni-+e *$r the ame.

-F The !+ient a'ree that $r%er, intr(!ti$n an% $ther !$mm(ni!ati$n 'ien $r ma%e $er the

te+e#h$ne ma -e re!$r%e% - the mem-er. The !+ient a+$ a'ree that (!h re!$r%in' an%

the mem-er re!$r%er $* an $r%er, intr(!ti$n an% !$mm(ni!ati$n 'ien $r ma%e -

the !+ient $r the mem-er - e+e!tr$ni! mai+, *a" $r $ther e+e!tr$ni! mean ha++ -e

a%mii-+e a ei%en!e an% ha++ -e *ina+ an% -in%in' ei%en!e $* the ame.

- The !+ient a'ree t$ #r$i%e in*$rmati$n re+atin' t$ !(t$mer re+atin' t$ !(t$mer (er

i%enti*i!ati$n an% (!h $ther in*$rmati$n a ma -e re9(ire% )hi+e #+a!in' $r%er $n thete+e#h$ne t$ %etermine the i%entit $* the !+ient.

/O(UNATR% "OCUMENTS NO-


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OR"ERS ROUTING AN E4ECUTION'

I6.1 The !+ient ha++ tranmit hi $r%er t$ the mem-er $n+ in the *$++$)in' manner

I. The manner i* an a the mem-er ma #ermit in!+(%in' thr$('h -ran!he that the

mem-er ma #e!i* *$r thi #(r#$e

II. Thr$('h the internet $er the mem-er )e-ite

III. Oer te+e#h$ne

I6.2 A a #re%i!ti$n *$r e"e!(ti$n $* a #(r!hae $r%er, the mem-er ma in it $+e %i!reti$n

i. Re9(ire% the !+ient, at the time $* $r%er #+a!ement - the !+ient, an aai+a-+e *(n%

-a+an!e in the !+ient a!!$(nt )ith the mem-er *$r the *(++ a+(e $* the $r%er #+( an

5r$era'e, eri!e ta", trana!ti$n !har'e, a$!iate% !$t an% (!h mar


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The !+ient ha++ n$t -e entit+e% t$ #re(me that an $r%er tranmitte% - the !+ient ha -een

re!eie% - the mem-er (nti+ the mem-er ha !$n*irme% re!ei#t $* (!h $r%er.H$)eer, %(e t$ te!hni!a+ $r $ther *a!t$r, an $r%er )hi!h ha -een re!eie% - the

mem-er ma n$t -e imme%iate+ !$n*irme% t$ the !+ient. S(!h !+ient in !$n*irmati$n

ha++ n$t entit+e the !+ient t$ #re(me that eh $r%er ha n$t -een re!eie% - the mem-er

an% the #rin!i#+e menti$ne% in the *irt enten!e $* thi !+a(e ha++ a##+.

I6.7 The !+ient ha++ -e a++$)e% t$ tra%e $n+ %(rin' Tra%in' h$(r.

I6.C A++ $r%er re!eie% - the mem-er thr$('h the tem ma -e e"e!(te% in '$$% *aith an%

ha++ -e a+i% (nti+ e#arate+ !an!e++e% in a!!$r%an!e )ith the #r$ii$n $* thi

a'reement.

I6.D The !+ient a'ree t$ en(re that a++ $r%er an% intr(!ti$n )hi!h the mem-er re!eie

*r$m the !+ient are a-$+(te+ !+ear an% (nam-i'($(& an% the !+ient a'ree that i* an

intr(!ti$n $r $r%er $r an %etai+ there*$re are n$t a-$+(te+ !+ear an% (nam-i'($(,the mem-er, it em#+$ee $r a(th$ri@e% re#reentatie ha++ -e entit+e% t$ inter#ret the

ame a #er ithi (n%ertan%in' an% (!h (n%ertan%in' an% inter#retati$n ha++ -e

treate% a *ina+.

I6.10 The mem-er ma *r$m time t$ time in it %i!reti$n im#$e an% ar +imit $n the

$r%er an% tra%e )hi!h the !+ient !an -e #+a!e an% enter int$ thr$('h the mem-er

tem in!+(%in' e"#$(re +imit, t(rn$er +imit, +imit a t$ the n(m-er, a+(e an%$r

in% $* e!(ritie in re#e!t $* )hi!h $r%er !an -e #+a!e%, the !$m#anie in re#e!t $*

)h$e e!(ritie $r%er !an -e #+a!e%, et!..

The mem-er ma !h$$e n$t t$ intimate the !+ient $* the +imit an% an ariati$n

there$*. The !+ient i a)are an% a'ree that he mem-er ma nee% t$ (r'ent+ ar the

+imit $r im#$e ne) +imit $r #r$hi-it $r retri!t the !+ient a-i+it t$ #+a!e $r%er $r

tra%e in e!(ritie thr$('h the mem-er $n the -ai $* the mem-er ri #er!e#ti$n

an% $ther *a!t$r !$ni%ere% re+eant - the mem-er, an% the mem-er ma n$t in*$rm

the !+ient $* the ame.The !+ient a'ree that the mem-er ha++ n$t -e re#$ni-+e $* +ia-+e *$r the !+ient

ina-i+it t$ #+a!e an $r%er $r enter int$ an trana!ti$n $n a!!$(nt $* na (!h

ariati$n, im#$iti$n, retri!ti$n $r #r$hi-iti$n.

I6.11 The mem-er ha++ hae the ri'ht t$ re*(e t$ a!!e#t the )h$+e $r a #art $* an $r%er $r

intr(!ti$n *r$m the !+ient an%$r re*(e t$ e"e!(te the )h$+e $r a #art $* an a!!e#te%

$r%er $r intr(!ti$n )ith$(t #r$i%in' an rea$n there*$re.


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In #arti!(+ar, the mem-er ma re*(e t$ a!!e#t $r e"e!(te the )h$+e $r a #art $* an $r%er $r

intr(!ti$n<

I. 5ae% $n the mem-er ri #er!e#ti$n $r II. In re#e!t $* )hi!h the !+ient re9(ire re'(+at$r a##r$a+, een i* the

?+ient ha $('ht an% $-taine% the re9(ire% re'(+ati$n a##r$a+&

I6.12 The !+ient ha++ -e re#$ni-+e *$r $-taine% an% !$m#+in' )ith a++ a##+i!a-+e +e'a+ an%

re'(+ati$n a##r$a+ in re#e!t $* the !+ient $r%er, intr(!ti$n an% trana!ti$n at the

%e*a(+t in reear!h there$*.I6.1 The mem-er ma in it %i!reti$n at an time a++$) $r %ia++$) mar'in tra%in' - the

!+ient.

- CON$IRMATIONS'.1 The !+ient ha++ -rin' an err$r $r $ther %i!re#an! in an re#$rt, a!!$(nt, !$n*irmati$n $r

!$ntra!t n$te $* e"e!(te% tra%e in!+(%in' e"e!(ti$n #ri!e, !ri# $r 9(antitie t$ the

mem-er n$ti!e in )ritin', ia e+e!tr$ni! mai+ $r *a".

8ithin 24 h$(r *r$m the time $* re!ei#t $* the *irt n$ti!e. In a++ !a(e, the mem-er ha++ hae

the ri'ht t$ a!!e#t $r re3e!t the !+ient $-3e!ti$n.

.2 There ma -e a %e+a in the mem-er re!eiin' the re#$rt $* trana!ti$n tat( *r$m the

E"!han'e. A!!$r%in'+, the mem-er ma *$r)ar% t$ the !+ient +ate re#$rt in re#e!t $* (!h

trana!ti$n that )ere #rei$(+ (nre#$rte% t$ him.

Or )ere in!$rre!t+ re#$rte% t$ him a -ein' e"#ire%, !an!e++e%, $r e"e!(te%. The !+ient ha++ n$t

h$+% the mem-er re#$ni-+e *$r na +$e (**ere% - the !+ient $n a!!$(nt $* na +ate

re#$rttatement $r na err$r in re#$rttatement !$m#(te% - $r re!eie% *r$m the

e"!han'e.

K- REPRESENTE" AN" ,ARRANTIES O$ T#E C(IENT'

B.1 A++ a!ti$n re9(ire% t$ -e taen t$ en(re !$m#+ian!e $* a++ the trana!ti$n )hi!h the !+ient

ma enter int$ #(r(ant t$ hi a'reement )ith a++ a##+i!a-+e +a) ha++ -e !$m#+ete% - the !+ient

#ri$r t$ (!h trana!ti$n -ein' entere% int$.


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B.2 The !+ient ha++ a-i%e - the e"!han'e #r$ii$n an% the term $* the mem-er 8e-ite in

*$r!e *r$m time t$ time.

B. An intr(!ti$n 'ien - an a(th$ri@e% re#reentatie $* the !+ient t$ the mem-er $r t$ themem-er re#reentatie ha++ -e -in%in' $n the !+ient.

L- REPRESENTATI/E AN" ,ARRANTIES O$ T#E MEMBERS'

The mem-er re#reent an% )arrant t$ the !+ient that, )hateer (!h a##r$a+ i re9(ire%, the

mem-er tem ha -een a##r$e% - the E"!han'e.

F- OT#ER "ATA'C.1 The !+ient (n%ertan% that the e"!han'e an% an $ther (##+ier $* %ata aert a

#r$#rietar interet in a++ $* the maret an% $ther %ata it *(rnihe, %ire!t+, thr$('h the

mem-er $r $ther)ie.

The !+ient (n%ertan% that the E"!han'e, (!h (##+ier an% the mem-er %$ n$t

'(arantee the time+ine, e9(en!e, a!!(ra! $r !$m#+etene $* the %ata $r na $ther

in*$rmati$n, $r an mea'e %ieminate% - it.

Neither the mem-er n$r the E"!han'e n$r (!h (##+ier ha++ -e +ia-+e in an )a *$r in!$rre!t, mi+ea%in', in!$m#+ete $r $(t


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D.1 The mem-er %$e n$t )arrant that the eri!e )i++

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