Competitive Strategy To Perform Good Risk Analysis of Options

A STUDY TO UNDERSTAND COMPLEXITIES AND FRAME A
COMPETITIVE STRATEGY TO PERFORM GOOD RISK

ANALYSIS OF OPTIONS
(Submitted to the Bangalore University in partial fulfillment for the
award of the Degree of Masters in Business Administration)
Submitted by
Vijay.K
Reg. No. O5JJCM6059
Under the guidance of

Prof.Edward Aloysius
(Faculty Guide)
KRISTU JAYANTI COLLEGE OF MANAGEMENT &

TECHNOLOGY
Bangalore - 560077
2006-2007
DECLARATION
I here by declare that this study titled “A STUDY TO UNDERSTAND

COMPLEXITIES AND FRAME A COMPETITIVE STRATEGY TO
PERFORM GOOD RISK ANALYSIS OF OPTIONS” submitted by me
to the department of management, Bangalore University in partial
fulfillment of requirement of MBA programme is a bonafide work carried by
me under the guidance of Prof. Aloysius Edward. This has not been
submitted earlier to any other university or institution for the award of any
degree/certified or published any time before.
PLACE: BANGALORE
DATE: 31/04/07 VIJAY.K
2
CERTIFICATE FROM GUIDE AND HEAD OF INSTITUTION
This is to certify that this project entitled “A STUDY TO UNDERSTAND

COMPLEXITIES AND FRAME A COMPETITIVE STRATEGY TO PERFORM
GOOD RISK ANALYSIS OF OPTIONS” submitted in partial fulfillment for the
award of MBA degree OF Bangalore University was carried out by Mr. VIJAY.K
(05JJCM6059).
Under the guidance of Prof. EDWARD ALOYSIUS. This has not been submitted to
any other University or Institution for the award of any degree/diploma/certificate.
Mr. EDWARD ALOYSIUS Dr. ARUN KUMAR

Guide MBA Dean
Fr. JoseKutty.P.D.
Principal
3
ACKNOWLEDGEMENTS
First of all, I thank the Almighty God for his mercy and love when kept me in good
health and sound mind and helped me to complete the project successfully.
I take this opportunity to thank our Principal Fr. Josekutty P.D. who had given us the
full support and required information regarding the project work .
I take this opportunity to express my profound and sincere thanks to Mr. Aloysius
Edward for his guidance and support throughout the project work .
I take this opportunity to express my profound and sincere thanks to Mr. Chella
Surendra ( KARVY – THE FINAPOLIS) for giving an opportunity to do this project
work in their reputed organization.
A special word of thanks to Dr. Arun Kumar ( Dean of MBA Department) and Prof.
A.M.TATTI (HOD of MBA Department) for their kind support throughout the project
work .
I sincerely thank my parents and friends for their encouragement and support during the
project. Last, but not the least, I express my gratitude to everyone who has directly or
indirectly helped me in completing the project in time and thereby making my project a
grand success.
VIJAY .K
4
EXECUTIVE SUMMARY
Derivatives are financial instruments/contracts whose value depends upon the value of an
underlying. Since their value is essentially derived out of an underlying they are financial
obstructions whose value is derived mathematically from the changes in the value of the
underlying.
The underlying can be an agricultural commodity like wheat, barley or tea;
individual stocks, like Microsoft, Infosys and Zee Telefilms; stock index like Nikkei –
225, BSE Sensex or NSE Nifty; financial instruments like treasury bills, notes and bonds;
currencies like dollar, Euro, Pound; or even interest rates and literally anything. Since
datives today are being written on any type of underlying and not necessary on an asset,
the underlying can be a widget – a hypothetical thing which is used for an example.
Options markets play an important role in the world of finance. From the point
of view of investor’s particularly institutional investors, options are important derivative
instrument and a major innovation in the field of risk management.
Options are a type of derivative, which simply means that their value depends on the
value of an underlying investment. In most cases, the underlying investment is a stock,
but it can also be an index, a currency, a commodity, or any number of other securities.
I had taken Beta and Volatility calculations of ten companies in NIFTY with the
help of secondary (historical) data. Beta shows the measurement of risk and Volatility
shows the variations of the respective companies share value.
The data’s for the analysis are collected from the National Stock Exchange and
Derivatives India (nseindia.com and derivatrivesindia.com). Researcher is mainly using
the secondary (historical) data’s for the analysis.
5
CONTENTS
CHAPTER CONTENTS PAGE

NO. NO.
1 INTRODUCTION 9 - 26
2 RESEARCH METHODOLOGY 27 – 32
3 COMPANY PROFILE 33 - 43
4 ANALYSIS AND INTERPRETATION 44 – 76
5 SUMMARY OF FINDINGS, CONCLUSIONS 77 – 79

AND SUGGESTIONS
BIBLIOGRAPHY 81
6
TABLES AND GRAPHS
TABLE NO. CONTENTS PAGE NO.

Table and Graph showing nifty
4.1 46 – 47
and market returns of RANBAXY
4.2 and market returns of 49 – 50
BAJAJAUTO
4.3 52 – 53
and market returns of ACC
HEROHONDA
TATASTEEL
DR.REDDY’s
MOSERBAER
MARUTIUDYOG LMTD
4.9 70 – 71
and market returns of M & M
ASHOKLEYLAND
7
CHAPTER 1
INTRODUCTION
8
INTRODUCTION
BSE created history on June 9, 2000 by launching the first Exchange traded Index
Derivative Contract i.e. futures on the capital market benchmark index - the BSE Sensex.
The inauguration of trading was done by Prof. J.R. Varma, member of SEBI and
chairman of the committee responsible for formulation of risk containment measures for
the Derivatives market. The first historical trade of 5 contracts of June series was done on
June 9, 2000 at 9:55:03 a.m. between M/s Kaji & Maulik Securities Pvt. Ltd. and
M/s Emkay Share & Stock Brokers Ltd. at the rate of 4755.
In the sequence of product innovation, the exchange commenced trading in Index Options
on Sensex on June 1, 2001. Stock options were introduced on 31 stocks on July 9, 2001
and single stock futures were launched on November 9, 2002.
September 13, 2004 marked another milestone in the history of Indian Capital Markets,
the day on which the Bombay Stock Exchange launched Weekly Options, a unique
product unparallel in derivatives markets, both domestic and international. BSE permitted
trading in weekly contracts in options in the shares of four leading companies namely
Reliance, Satyam, State Bank of India, and Tisco in addition to the flagship index-
Sensex.
9
DERIVATIVES
In finance, a derivative is a financial instrument that is derived from an underlying asset's

value; rather than trade or exchange the asset itself.
Market participants enter into an agreement to exchange money, assets or some other
value at some future date based on the underlying asset. Examples of assets could be
anything from bars of gold, to a stock, or even an interest rate.
Derivatives can be based on different types of assets such as Commodities, Equities or

Bonds, Interest rates , exchange rates, or indices (such as a stock market index, consumer
price index (CPI) — see inflation derivatives — or even an index of weather conditions,
or other derivatives). Their performance can determine both the amount and the timing of
the payoffs. The main use of derivatives is to either remove risk or take on risk depending
if one were a hedger or a speculator. The diverse range of potential underlying assets and
payoff alternatives leads to a huge range of derivatives contracts available to be traded in
the market.
The main types of derivatives are :
► Futures
► Forwards
► Options
► Swaps
10
Derivatives are increasingly being used to protect assets from drastic fluctuations and at
the same time they are being re-engineered to cover all kinds of risk and with this the
growth of the derivatives market continues. It is, indeed, ironic that something set up to
prevent risk will also allow parties to expose themselves to risk of exponential
proportions.
FUTURES:
A futures contract is a standardized contract to buy or sell a specific security at a future

date at an agreed price.
FORWARDS:
The process involves the delivery of foreign currency at a specified future date for a
specified price is known as Forward contract.
OPTIONS:
Options are a type of derivative, which simply means that their value depends on the
value of an underlying investment. In most cases, the underlying investment is a stock,
but it can also be an index, a currency, a commodity, or any number of other securities.
SWAPS:
Financial SWAPS are a funding technique, which permit a borrower to access one market
and then exchange the liability for another type of liability. The global financial markets
present borrowers and investors with a wide variety of financing and investment vehicles
in terms of currency and type of coupon- fixed or floating.
11
TYPES OF PRODUCTS :
Index Futures
A futures contract is a standardized contract to buy or sell a specific security at a

future date at an agreed price.
An index future is, as the name suggests, a future on the index i.e. the underlying
is the index itself. There is no underlying security or a stock, which is to be
delivered to fulfill the obligations as index futures are cash settled. As other
derivatives, the contract derives its value from the underlying index. The
underlying indices in this case will be the various eligible indices and as permitted
by the Regulator from time to time.
Index Options
Options contract give its holder the right, but not the obligation, to buy or sell
something on or before a specified date at a stated price. Generally index options
are European Style. European Style options are those option contracts that can be
exercised only on the expiration date. The underlying indices for index options are
the various eligible indices and as permitted by the Regulator from time to time.
Stock Futures
A stock futures contract is a standardized contract to buy or sell a specific stock at

a future date at an agreed price. A stock future is, as the name suggests, a future
on a stock i.e. the underlying is a stock. The contract derives its value from the
underlying stock. Single stock futures are cash settled.
12
Stock Options
Options on Individual Stocks are options contracts where the underlyings are
individual stocks. Based on eligibility criteria and subject to the approval from the
regulator, stocks are selected on which options are introduced. These contracts are
cash settled and are American style. American Style options are those option
contracts that can be exercised on or before the expiration date.
ELIGIBILITY CRITERIA :
As prescribed by SEBI vide its Circulars regarding the eligibility criteria for
introducing Futures & Options Contracts on stocks and indices, the following
revised eligibility criteria would be applied w.e.f. September 22nd, 2006 to
determine the eligibility of stocks and indices on which Futures & Options
contract could be introduced for trading in Derivatives.
13
Eligibility criteria for introducing Futures & Options Contracts on Stocks.
o The stocks would be chosen from amongst the top 500 stocks in terms of
average daily market capitalization and average daily traded value in the
previous six-month on a rolling basis.
o For a stock to be eligible, the median quarter-sigma order size over the last
six months should not be less than Rs. 1 lac (Rs 0.01 Million). For this
purpose, a stock's quarter sigma order size shall mean the order size (in
value terms) required to cause a change in the stock price equal to one-
quarter of a standard deviation.
o The Market Wide Position Limit in the Stock shall not be less than Rs 50
crores (Rs 500 Million). The Market Wide Position Limit is valued taking
into consideration 20% of number of shares held by the Non Promoters
(i.e free-float holding) in the relevant underlying Security(i.e free-float
holding) and the closing prices of the stock in the underlying cash market
on the date of expiry of contract in the month. Market Wide Position Limit
is calculated at the end of every month.
The methodology used for calculating quarter sigma order size is as follows:
o Quarter sigma order size would be calculated taking four snapshots in a

day from the order book of the stock in the past six months.
o The sigma (standard deviation) or volatility estimate would be calculated
in the manner specified by Prof. J. R. Varma Committee on risk
containment measures for Index Futures. This daily closing volatility
14
estimate value would be applied to the day's order book snapshots to
compute the order size.
o The quarter sigma percentage would be applied to the average of the best
bid and offer price in the order book snapshot to compute the order size to
move price of the stock by quarter sigma.
o The median order size to cause quarter sigma price movement shall be
determined separately for the buy side and the sell side. The average of the
median order size for the buy and the sell side is taken as the median
quarter sigma order size.
o The quarter sigma order size in stock shall be calculated on the 15th of
each month, on a rolling basis, considering the order book snapshots in the
previous six months. Similarly, the average daily market capitalization and
the average daily traded value shall also be computed on the 15th of each
month, on a rolling basis, to arrive at the list of top 500 stocks.
Eligibility criteria for unlisted companies coming out with Initial Public Offering :
For unlisted companies coming out with initial public offering, if the net public
offer is Rs. 500 crores (Rs 5 Billion) or more, then the exchange may consider
introducing stock options and stock futures on such stocks at the time of its listing
in the cash market.
Eligibility criteria for stocks on account of corporate restructuring:
All the following conditions should be met in the case of shares of a company
undergoing restructuring through any means for eligibility to re-introduce
derivative contracts on that company from the first day of listing of the post
restructured company in the underlying market:
15
o The Futures and Options contracts on the stock of the original (pre-
restructure) company were traded on any exchange prior to its
restructuring.
o o The pre restructured company had a market capitalization of at least Rs.
1000 crores (Rs 10 Billion) prior to restructuring.
o o The post restructure company would be treated like a new stock and if it
is, in the opinion of the exchange, likely to be at least one third of the size
of the pre structuring company in terms of revenues or assets or analyst
valuations, and
o o In the opinion of the exchange, the scheme of restructuring does not
suggest that the post restructured company would have any characteristic
that would render the company ineligible for derivatives trading.
o o If the post restructured company comes out with an Initial Public
Offering (IPO), then the same prescribed criteria as currently applicable
for introduction of derivatives on a company coming out with an IPO is
applied for introduction of derivatives on stocks of the post restructured
company from its first day of listing.
Discontinuance / Exit of Futures & Options Contracts on stocks :
No fresh month contracts shall be issued on the stocks under the following instances
o If a stock does not conform to the above eligibility criteria for a

consecutive period of three months, no fresh month contracts shall be
issued on the same.
o If the stock remains in the banned position in the manner stated in SEBI
Circular No. SEBI/DNPD/Cir-26/2004/07/16 dated July 16, 2004 as per
para 4 (i) (a), (b) (c) of the aforementioned SEBI circular, for a significant
part of the month, consistently for three months, then no fresh month
contracts shall be issued on those scripts.
o The exit criteria shall be more flexible as compared to entry criteria in
order to prevent frequent entry and exit of stocks in the derivatives
16
segment. Therefore, for a stock to become ineligible, the criteria for
market wide position limit shall be relaxed up to 10% of the criteria
applicable for the stock to become eligible for derivatives trading. The
other eligibility conditions would be applicable mutas mutandis for the
stock to become ineligible.
If a stock fails to meet the aforesaid eligibility criteria for three months consecutively,
then no fresh month contract shall be issued on that stock
However, the existing unexpired contracts may be permitted to trade till expiry and new
strikes may also be introduced in the existing contract months.
The Exchange may compulsorily close out all derivative contract positions in a particular
underlying when that underlying has ceased to satisfy the eligibility criteria or the
exchange is of the view that the continuance of derivative contracts on such underlying is
detrimental to the interest of the market keeping in view the market integrity and safety.
The decision of such forced closure of derivative contracts shall be taken in consultation
with other exchanges where such derivative contracts and are also traded shall be applied
uniformly across all exchanges.
Re-Introduction of Stocks Discontinued from Futures & Options Trading :
A stock, which is dropped from derivatives trading, may become eligible once again. In
such instances, the stock is required to fulfill the eligibility criteria for three consecutive
months (instead of one month as specified earlier) to be re-introduced for derivatives
trading. Derivative contracts on such stocks may be re-introduced by the exchange itself.
However, introduction of futures and option contracts on a stock for the first time would
continue to be subject to SEBI approval.
17
Eligibility criteria for introducing Futures & Options Contracts on Index
The Futures Options Contracts on an index can be issued only if 80% of the index
constituents are individually eligible for derivatives trading. However, no single ineligible
stock in the index shall have a weight age of more than 5% in the index. The index on
which Futures and Options contracts are introduced shall be required to comply with the
eligibility criteria on a monthly basis.
Discontinuance of Futures & Options Contracts on index:
If the index fails to meet the above eligibility criteria for three months consecutively, then
no fresh month contract shall be issued on that Index. However, the existing unexpired
contracts shall be permitted to trade till expiry and new strike prices will continue to be
introduced in the existing contracts.
The above requirements as prescribed by SEBI need to be necessarily met for

introduction of F&O contracts on underlying stocks of the cash market. However, once
the criteria are met, it is at the discretion of the Exchange to apply to SEBI for permission
to launch F&O contract on the eligible stocks. Once the SEBI approval in respect of those
stocks is obtained, the exchange issues a suitable notice to the market, in advance and
then introduces F & O contracts on the respective stocks.
TRADING SYSTEM
18
The Derivatives Trading at BSE takes place through a fully automated screen based
trading platform called as DTSS (Derivatives Trading and Settlement System). The DTSS
is designed to allow trading on a real time basis. In addition to generating trades by
matching opposite orders, the DTSS also generates various reports for the member
participants.
Order Matching Rules
Order Matching will take place after order acceptance wherein the system searches for an
opposite matching order. If a match is found, a trade will be generated. The order against
which the trade has been generated will be removed from the system. In case the order is
not exhausted further matching orders will be searched for and trades generated till the
order gets exhausted or no more match-able orders are found. If the order is not entirely
exhausted, the system will retain the order in the pending order book. Matching of the
orders will be in the priority of price and timestamp. A unique trade-id will be generated
for each trade and the entire information of the trade is sent to the members involved.
Order Conditions
The derivatives market is order driven i.e. the traders can place only Orders in the system.
Following are the Order types allowed for the derivative products. These order types have
characteristics similar to ones in the cash market.
o Limit Order: An order for buying or selling at a limit price or better, if

possible. Any unexecuted portion of the order remains as a pending order
till it is matched or its duration expires.
19
o Market Order: An order for buying or selling at the best price prevailing in
the market at the time of submission of the order.
o There are two types of Market orders:
1. Partial fill rest Kill (PF): execute the available quantity and kill any
unexecuted portion.
2. Partial fill rest Convert (PC): execute the available quantity and
convert any unexecuted portion into a limit order at the traded
price.
o Stop Loss: An order that becomes a limit order only when the market
trades at a specified price.
All orders shall have the following attributes:
o Order Type (Limit / Market PF/Market PC/ Stop Loss)

o The Asset Code, Product Type, Maturity, Call/Put and Strike Price.
o Buy/Sell Indicator
o Order Quantity
o Price
o Client Type (Own / Institutional / Normal)
o Client Code
20
o Order Retention Type (GFD / GTD / GTC)
Good For Day (GFD) - The lifetime of the order is that trading session.
Good Till Date (GTD) - The life of the order is till the number of days as
specified by the order retention period. .
Good Till Cancelled (GTC) - The order if not traded will remain in the
system till it is cancelled or the series expires, whichever is earlier.
o Order Retention Period (in calendar days) This field is enabled only if the
value of the previous attribute is GTD. It specifies the number of days the
order is to be retained.
o Protection Points This is a field relevant in Market Orders and Stop Loss
orders. The value enterable will be in absolute underlying points and
specifies the band from the touchline price or the trigger price within
which the market order or the stop loss order respectively can be traded.
o Risk Reducing Orders (Y/N): When the member's collateral falls below 50
lacs then he will be allowed to put only risk reducing orders and he will
not be allowed to take any fresh positions. It is not essentially a type of
order but a mode into which the member is put into when he violates his
collateral limit. A member who has entered the risk-reducing mode will be
allowed to put only one risk reducing order at a time.
21
TRADING HOLIDAYS
Holidays Date Day

1 Bakri-Id 1st January, 2007 Monday
2 Republic Day 26th January, 2007 Friday
3 Moharum 30th January, 2007 Tuesday
4 Mahashivratri 16th February, 2007 Friday
5 Ram Navami 27th March, 2007 Tuesday
6 Good Friday 6th April, 2007 Friday
7 Maharashtra Day 1st May, 2007 Tuesday
8 Buddha Pournima 2nd May, 2007 Wednesday
9 Independence Day 15th August, 2007 Wednesday
10 Mahatma Gandhi Jayanti 2nd October, 2007 Tuesday
11 Diwali Amavasya (Laxmipuja) 9th November, 2007 Friday
12 Bakri-Id (falls twice in 2007) 21st December, 2007 Friday
13 Christmas 25th December, 2007 Tuesday
SESSION NAME FROM TO

Beginning of the Day Session 8:00 9:00
Login Session 9:00 9:55
SESSION Trading Session 9:55 15:30
TIMINGS Position Transfer Session 15:30 15:50
Closing Session 15:50 16:05
Option Exercise Session 16:05 16:35
Margin Session 16:35 16:50
Query Session 16:50 17:50
End of Day Session 17:50 17:50
22
PRICE BANDS
There are no maximum and minimum price ranges for Futures and Options
Contracts. However, to avoid erroneous order entry, dummy price bands have
been introduced in the Derivatives Segment. Further, no price bands are
prescribed in the Cash Segment for stocks on which Futures & Options contracts
are available for trading. Also, for those stocks which do not have Futures &
Options Contracts available on them but are forming part of the index on which
Futures & Options contracts are available, no price bands are attracted provided
the daily average trading on such indices in the F & O Segment is not less than 20
contracts and traded on not less than 10 days in the preceding month.
LIMITED TRADING MEMBERSHIP FOR BSE DERIVATIVES

SEGMENT
A Limited Trading Member (LTM) is a non-clearing trading participant having

full trading rights and direct market access to the Derivatives Trading System of
the Exchange.
23
o A LTM is provided with derivatives trading terminals for execution of
trades either on his own account or on account of his clients.
o A LTM can issue contract notes to his clients in his own name.
o A LTM can exercise and perform trade and position management
functions online and also check his payment obligations that may result
from his trading activities.
o A LTM, however, cannot clear and settle trades executed by him directly
with the Clearing House of the Exchange. For this purpose, we would need
to enter into an arrangement with an existing Clearing Member of the
Derivatives Segment of BSE. (A list of Clearing Members can be obtained
from the Exchange.)
What are the advantages of becoming a LTM?
There are following significant advantages in becoming LTM of the Derivatives

Segment of the BSE.
Direct access to the on-line Derivatives Trading System of the Exchange
Trading in Option and Futures on Sensex, Single Stock Futures and options in
eligible scrips and interest rate derivative instruments
Access to new products as and when they are introduced
Who can become LTM?
Individuals, firms, corporates and institutions, who are not members of the Cash
Segment of BSE, can become LTM.
24
What are the requirements for becoming a LTM?
o Minimum networth of Rs. 25 lakhs

o A registration with SEBI
Charges Payable By LTM :
One-time (non-refundable) contribution to Trade Guarantee Fund (TGF) : Rs.1,00,000

One-time (non-refundable) contribution to Investors Protection Fund (IPF) : Rs.2,00,000
Annual Membership Charges : RS 25,000.
Minimum Security Deposit:
LTM has to maintain a minimum security deposit of Rs.7,50,000 with the Clearing
Member and the same is available to him for the purpose of trading limits and initial
margin requirements.
Transaction Charges:
The members are at present required to pay transaction charges at a Re. 0.25 per
Rs.1,00,000 of turnover which is appropriated towards TGF & IPF.
Sub-brokers in the Cash Segment can become LTMs of the Derivatives Segment with
minimum investment and significant advantages as mentioned above.
* Annual membership charges of Rs. 25,000/- have been waived for the financial
year, 2004-2005
25
CHAPTER 2
RESEARCH METHODOLOGY
26
STATEMENT OF PROBLEM:
The Option buyers are no way under obligation in exercising their right to buy or sell
.Their right to buy or sell can be exercised only if its execution is in their favor.
Accordingly, an option contract is specific on the quantity of the asset to be bought or
sold, the price at which the transaction has to take place(strike price) and the date up to
which the contract is valid(expiry date).
The price at which asset would change and in future is agreed upon the
time of entering into the contract. The actual purchase or sale of the underlying involving
payment of cash and delivery of the instrument does not take place until the contracted
date of delivery. Prices of options are commonly depending upon six factors. Unlike
futures which derives there prices primarily from the undertaking. Option’s prices are far
more complex. The study tries to understand these complexities and frame a competitive
strategy to frame a good risk analysis.
NEED AND IMPORTANCE OF THE STUDY

The study covers derivatives market with specific reference to Option market.
The study shows the profit enhancement and risk reduction in derivatives.
The study shows the Beta and Volatility calculation for the purpose of measuring the risk
and variability of different company’s shares.
The study also shows how an investor can minimize risk.
27
OBJECTIVES OF THE STUDY:
1. To have a basic knowledge about stock option.

2. To see whether there is any risk less profit available in the market.
3. How far option can be advised as a profit making strategy.
OPERATIONAL DEFINITIONS OF CONCEPTS
Buy Open: - Means a buy transaction which will have the effect of creating or increasing
a long position.
Clearing Member: - Clearing Member means a Member of the Clearing Corporation.
Closing buy transaction Means a buy transaction which will have the effect of partly or
fully offsetting a short position.
Closing sell transaction: - Means a sell transaction which will have the effect of partly
or fully offsetting a long position.
Constituent: - A constituent means a person, on whose instructions and, on whose
account, the Trading Member enters into any contract for the purchase or sale of any
security or does any act in relation thereto.
Contract Month: - Contract month means the month in which a contract is required to
be finally settled.
Derivatives Contract: - A contract which derives its value from the prices of underlying
securities.
Expiration Day: - The day on which the final settlement obligation are determined in a
Derivatives Contract.
28
Futures Contract: - means a firm contractual agreement to buy or sell the underlying
security in the future.
Last Trading Day: - Means the day unto and on which a Derivatives Contract is
available for trading.
Long Position: - Long Position in a Derivatives contract means outstanding purchase
obligations in respect of a permitted derivatives contract at any point of time.
Open Position: - Open position means the sum of long and short positions of the
Member and his constituent in any or all of the Derivatives Contracts outstanding with
the Clearing Corporation.
Open Interest: - Open Interest means the total number of Derivatives Contracts of an
underlying security that have not yet been offset and closed by an opposite Derivatives
transaction nor fulfilled by delivery of the cash or underlying security or option exercise.
For calculation of Open Interest only one side (either the long or the short) of the
Derivatives Contract is counted.
Options Contract: - Options Contract is a type of Derivatives Contract which gives the
buyer/holder of the contract the right (but not the obligation) to buy/sell the underlying
security at a predetermined price within or at end of a specified period. The option
contract which gives a right to buy is called a Call Option and the option contract that
gives a right to sell is called a Put Option.
Option Holder: - Option Holder means a Trading Member who is the buyer of the
Options Contracts.
Option Writer: - Option Writer means a Trading Member who is the seller of the
Options Contracts.
Outstanding Obligation: - Means the obligation which has neither been closed out nor
been settled.
Permitted Derivatives: - Contract Permitted Derivatives Contract is a derivative contract
which is permitted to be traded on the Futures & Options segment of the Exchange.
Regular lot / Market Lot Means the number of units that can be bought or sold in a
specified derivatives contract and it is also termed as Contract Multiplier.
Risk Disclosure Document: - Refers to the document to be issued to all potential
investors at the time of registration for disclosure of the risks inherent to derivatives.
29
Settlement Date: - Means the date on which the settlement of outstanding obligations in
a permitted Derivatives contract are required to be settled.
Sell Open: - Means a sell transaction which will have the effect of creating or increasing
a short position.
Short Position: - Short position in a derivatives contract means outstanding sell
obligations in respect of a permitted derivatives contract at any point of time.
Trading cycle: - Trading cycle means the period during which the derivatives contract
will be available for trading.
Trading Member: - Trading Member is a member of Derivative Exchange.
Trading cum Clearing Member: - Means Member of Derivatives Exchange as well as
its Clearing Corporation.
Trade Type: - Trade type is the type of trade as may be permitted by the F&O Segment
of the Exchange from time to time for each Market Type.
Underlying Securities: - Means a security with reference to which a derivatives contract
is permitted to be traded on the Futures & Options segment of the Exchange from time to
time.
Beta; - Beta is the measurement of risk; if the Beta value is more it shows the more risk
of the respective share.
Volatility; - More the volatility, higher is the probability of the future generating higher
returns to the buyer. The downside in both the cases of call and put is fixed but the gains
can be unlimited.
30
RESEARCH DESIGN:
1. HYPOTHESIS:
HO: Risk is not the same across all the Option stocks.
H1 : Risk is the same across all the Option stocks.
2. DATA COLLECTION:
Primary data will be collected from the company and through NSE terminal.
Secondary data will be collected from reports, magazines, journals and from websites.
3. POPULATION:
Research will be conducted on ten companies.
4. SAMPLE PROCEDURE:
The procedure adopted will be convenient sampling.

Sample of ten companies will be selected as per convenience.
5. LIMITATIONS OF THE STUDY:
Volatility of the market has made the study complex and uncertain.
The study is limited to Options.
The research is limited by time and cost.
31
CHAPTER 3
COMPANY PROFILE
32
COMPANY PROFILE
KARVY, is a premier integrated financial services provider, and ranked among the top
five in the country in all its business segments, services over 16 million individual
investors in various capacities, and provides investor services to over 300 corporates,
comprising the who is who of Corporate India. KARVY covers the entire spectrum of
financial services such as Stock broking, Depository Participants, Distribution of
financial products - mutual funds, bonds, fixed deposit, equities, Insurance Broking,
Commodities Broking, Personal Finance Advisory Services, Merchant Banking &
Corporate Finance, placement of equity, IPOs, among others. Karvy has a professional
management team and ranks among the best in technology, operations and research of
various industrial segments.
The birth of Karvy was on a modest scale in 1981. It began with the vision and enterprise
of a small group of practicing Chartered Accountants who founded the flagship company
…Karvy Consultants Limited. We started with consulting and financial accounting
automation, and carved inroads into the field of registry and share accounting by 1985.
Since then, we have utilized our experience and superlative expertise to go from strength
33
to strength…to better our services, to provide new ones, to innovate, diversify and in the
process, evolved Karvy as one of India’s premier integrated financial service enterprise.
Thus over the last 20 years Karvy has traveled the success route, towards building a
reputation as an integrated financial services provider, offering a wide spectrum of
services. And we have made this journey by taking the route of quality service, path
breaking innovations in service, versatility in service and finally…totality in service.
Our highly qualified manpower, cutting-edge technology, comprehensive infrastructure
and total customer-focus has secured for us the position of an emerging financial services
giant enjoying the confidence and support of an enviable clientele across diverse fields in
the financial world.
Our values and vision of attaining total competence in our servicing has served as the
building block for creating a great financial enterprise, which stands solid on our
fortresses of financial strength - our various companies.
With the experience of years of holistic financial servicing behind us and years of
complete expertise in the industry to look forward to, we have now emerged as a premier
integrated financial services provider.
And today, we can look with pride at the fruits of our mastery and experience –
comprehensive financial services that are competently segregated to service and manage a
diverse range of customer requirements.
Member - Natio nal Stock Exchange (NSE), The Bombay Stock Exchange (BSE), and
The Hyderabad Stock Exchange (HSE).
Karvy Stock Broking Limited, one of the cornerstones of the Karvy edifice, flows freely
towards attaining diverse goals of the customer through varied services. Creating a
plethora of opportunities for the customer by opening up investment vistas backed by
research-based advisory services. Here, growth knows no limits and success recognizes
no boundaries. Helping the customer create waves in his portfolio and empowering the
34
investor completely is the ultimate goal.
Stock Broking Services
It is an undisputed fact that the stock market is unpredictable and yet enjoys a high
success rate as a wealth management and wealth accumulation option. The difference
between unpredictability and a safety anchor in the market is provided by in-depth
knowledge of market functioning and changing trends, planning with foresight and
choosing one’s options with care. This is what we provide in our Stock Broking
services.
We offer services that are beyond just a medium for buying and selling stocks and shares.
Instead we provide services which are multi dimensional and multi-focused in their
scope. There are several advantages in utilizing our Stock Broking services, which are the
reasons why it is one of the best in the country.
We offer trading on a vast platform ; National Stock Exchange, Bombay Stock Exchange
and Hyderabad Stock Exchange. More importantly, we make trading safe to the
maximum possible extent, by accounting for several risk factors and planning
accordingly. We are assisted in this task by our in-depth research, constant feedback and
sound advisory facilities. Our highly skilled research team, comprising of technical
analysts as well as fundamental specialists, secure result-oriented information on market
trends, market analysis and market predictions. This crucial information is given as a
constant feedback to our customers, through daily reports delivered thrice daily ; The Pre-
session Report, where market scenario for the day is predicted, The Mid-session Report,
timed to arrive during lunch break , where the market forecast for the rest of the day is
35
given and The Post-session Report, the final report for the day, where the market and the
report itself is reviewed. To add to this repository of information, we publish a monthly
magazine “Karvy ; The Finapolis”, which analyzes the latest stock market
trends and takes a close look at the various investment options, and products available in
the market, while a weekly report, called “ Karvy Bazaar Baatein”, keeps
you more informed on the immediate trends in the stock market. In addition, our specific
industry reports give comprehensive information on various industries. Besides this, we
also offer special portfolio analysis packages that provide daily technical advice on scrips
for successful portfolio management and provide customized advisory services to help
you make the right financial moves that are specifically suited to your portfolio.
Our Stock Broking services are widely networked across India, with the number of our
trading terminals providing retail stock broking facilities. Our services have increasingly
offered customer oriented convenience, which we provide to a spectrum of investors,
high-networth or otherwise, with equal dedication and competence.
But true to our spirit, this success is not our final destination, but just a platform to launch
further enhanced quality services to provide you the latest in convenient, customer-
friendly stock management.
Over the years we have ensured that the trust of our customers is our biggest returns.
Factors such as our success in the Electronic custody business has helped build on our
tradition of trust even more. Consequentially our retail client base expanded very fast.
To empower the investor further we have made serious efforts to ensure that our research
calls are disseminated systematically to all our stock broking clients through various
delivery channels like email, chat, SMS, phone calls etc.
Our foray into commodities broking has been path breaking and we are in the process of
converting existing traders in commodities into the more organized mainstream of trading
in commodity futures, both as a trading and risk hedging mechanism.
In the future, our focus will be on the emerging businesses and to meet this objective, we
36
have enhanced our manpower and revitalized our knowledge base with enhances focus on
Futures and Options as well as the commodities business.
Depository participants
The onset of the technology revolution in financial services Industry saw the emergence
of Karvy as an electronic custodian registered with National Securities Depository Ltd
(NSDL) and Central Securities Depository Ltd (CSDL) in 1998. Karvy set standards
enabling further comfort to the investor by promoting paperless trading across the country
and emerged as the top 3 Depository Participants in the country in terms of customer
serviced.
Offering a wide trading platform with a dual membership at both NSDL and CDSL, we
are a powerful medium for trading and settlement of dematerialized shares. We have
established live DPMs, Internet access to accounts and an easier transaction process in
order to offer more convenience to individual and corporate investors. A team of
professional and the latest technological expertise allocated exclusively to our demat
division including technological enhancements like SPEED-e, make our response time
quick and our delivery impeccable. A wide national network makes our efficiencies
accessible to all .
Distribution of financial products
The paradigm shift from pure selling to knowledge based selling drives the business
today. With our wide portfolio offerings, we occupy all segments in the retail financial
services industry.
37
A 1600 team of highly qualified and dedicated professionals drawn from the best of
academic and professional backgrounds are committed to maintaining high levels of
client service delivery. This has propelled us to a position among the top distributors for
equity and debt issues with an estimated market share of 15% in terms of applications
mobilized, besides being established as the leading procurer in all public issues.
To further tap the immense growth potential in the capital markets we enhanced the scope
of our retail brand, Karvy – the Finapolis , thereby providing planning and advisory
services to the mass affluent. Here we understand the customer needs and lifestyle in the
context of present earnings and provide adequate advisory services that will necessarily
help in creating wealth. Judicious planning that is customized to meet the future needs of
the customer deliver a service that is exemplary. The market-savvy and the ignorant
investors, both find this service very satisfactory. The edge that we have over competition
is our portfolio of offerings and our professional expertise. The investment planning for
each customer is done with an unbiased attitude so that the service is truly customized.
Our monthly magazine, Finapolis, provides up-dated market information on market

trends, investment options, opinions etc. Thus empowering the investor to base every
financial move on rational thought and prudent analysis and embark on the path to wealth
creation.
Advisory services
Under our retail brand ‘Karvy – the Finapolis', we deliver advisory services to a cross-
section of customers. The service is backed by a team of dedicated and expert
professionals with varied experience and background in handling investment portfolios.
They are continually engaged in designing the right investment portfolio for each
customer according to individual needs and budget considerations with a comprehensive
support system that focuses on trading customers' portfolios and providing valuable
inputs, monitoring and managing the portfolio through varied technological initiatives.
This is made possible by the expertise we have gained in the business over the years.
Another venture towards being investor-friendly is the circulation of a monthly magazine
38
called ‘Karvy - the Finapolis'. Covering the latest of market news, trends, investment
schemes and research-based opinions from experts in various financial fields.
Private client group
This specialized division was set up to cater to the high net worth individuals and
institutional clients keeping in mind that they require a different kind of financial
planning and management that will augment not just existing finances but their life-style
as well. Here we follow a hard-nosed business approach with the soft touch of dedicated
customer care and personalized attention.
For this purpose we offer a comprehensive and personalized service that encompasses
planning and protection of finances, planning of business needs and retirement needs and
a host of other services, all provided on a one-to-one basis.
Our research reports have been widely appreciated by this segment. The delivery and
support modules have been fine tuned by giving our clients access to online portfolio
information, constant updates on their portfolios as well as value-added advise on
portfolio churning, sector switches etc. The investment recommendations given by our
research team in the cash market has enjoyed a high success rate.
39
BOARD OF DIRECTORS
Mr. C. Parthasarathy (DIRECTOR)
Mr. M. Yugandhar (DIRECTOR)
Mr. M.S. Ramakrishna (DIRECTOR)
Mr. Akash Mehta (DIRECTOR)
Mr. Peter Wing Hung So (DIRECTOR)
40
Achievements
Among the top 5 stock brokers in India (4% of NSE volumes)
India's No. 1 Registrar & Securities Transfer Agents
Among the to top 3 Depository Participants
Largest Network of Branches & Business Associates
ISO 9002 certified operations by DNV
Among top 10 Investment bankers
Largest Distributor of Financial Products
Adjudged as one of the top 50 IT uses in India by MIS Asia
Full Fledged IT driven operations
41
Quality policy :
To achieve and retain leadership, Karvy shall aim for complete customer satisfaction, by
combining its human and technological resources, to provide superior quality financial
services. In the process, Karvy will strive to exceed Customer's expectations.
Quality Objectives
As per the Quality Policy, Karvy will :
• Build in-house processes that will ensure transparent and harmonious

relationships with its clients and investors to provide high quality of services.
• Establish a partner relationship with its investor service agents and vendors that
will help in keeping up its commitments to the customers.
• Provide high quality of work life for all its employees and equip them with
adequate knowledge & skills so as to respond to customer's needs.
• Continue to uphold the values of honesty & integrity and strive to establish
unparalleled standards in business ethics.
• Use state-of-the art information technology in developing new and innovative
financial products and services to meet the changing needs of investors and
clients.
• Strive to be a reliable source of value-added financial products and services and
constantly guide the individuals and institutions in making a judicious choice of
same.
• Strive to keep all stake-holders(shareholders, clients, investors, employees,
suppliers and regulatory authorities) proud and satisfied.
42
CHAPTER 4
ANALYSIS AND INTERPRETATION
43
CALCULATION OF BETA AND VOLATALITY
Formula used for the calculation of Beta and Standard Deviation
This chapter provides the beta and volatility of derivatives of FIVE companies in
NIFTY.
Computation of Standard Deviation:
RATE OF RETURN = (Adj Close – Open) / Open*100
Variance calculated as per Excel Formula
Standard Deviation = square root of variance
(Standard deviation based on Arithmetical Returns calculated as per Excel Formulae)
COMPUTATION OF BETA:
Beta = n. Σxy - (Σx) (Σy)
n. Σx^2-(Σx) ^2
Stock Return (Y) = (Adj Close – Open) / Open*100
44
Market Return(X) = (Adj Close – Open) / Open*100
4.1 RANBAXY - From 1-3-2007 to 31-3-2007

BETA AND VOLATILITY
S & P CNX Market Stock

NIFTY RANBAXY Return Return
Date Open Close Open Close X Y X*Y X^2
01-Mar-07 3745.40 3811.20 344.0 337.40 1.757 -1.919 3.371 3.087
02-Mar-07 3811.65 3726.75 345.00 341.25 -2.227 -1.087 2.420 4.960
05-Mar-07 3726.50 3576.50 345.50 317.60 -4.025 -8.075 32.501 16.201
06-Mar-07 3577.15 3655.65 325.00 320.05 2.194 -1.523 -3.341 4.814
07-Mar-07 3661.55 3626.85 322.00 304.50 -0.948 -5.435 5.152 0.899
08-Mar-07 3627.25 3761.65 312.00 309.20 3.705 -0.897 -3.323 13.727
09-Mar-07 3761.85 3718.00 334.00 322.00 -1.166 -3.593 4.189 1.360
12-Mar-07 3717.45 3734.60 328.00 322.50 0.461 -1.677 -0.773 0.213
13-Mar-07 3735.25 3770.55 323.75 317.20 0.945 -2.023 -1.911 0.893
14-Mar-07 3768.40 3641.10 316.50 307.20 -3.378 -2.938 9.924 11.411
15-Mar-07 3644.90 3643.60 315.95 309.70 -0.036 -1.978 0.071 0.0013
16-Mar-07 3639.35 3608.55 315.00 311.00 -0.846 -1.269 1.073 0.716
19-Mar-07 3611.30 3678.90 319.50 315.65 1.872 -1.205 -2.255 3.504
20-Mar-07 3680.35 3697.60 318.90 318.15 0.469 -0.235 -0.110 0.220
21-Mar-07 3697.70 3764.55 340.00 330.40 1.808 -2.823 -5.103 3.269
22-Mar-07 3764.50 3875.90 334.20 332.50 2.959 -0.509 -1.506 8.756
23-Mar-07 3876.75 3861.05 334.25 329.00 -0.405 -1.571 0.636 0.164
26-Mar-07 3863.45 3819.95 333.00 325.25 -1.126 -2.327 2.620 1.268
28-Mar-07 3818.75 3761.10 326.00 325.25 -1.510 -0.230 0.347 2.280
45
29-Mar-07 3759.15 3798.10 336.95 336.95 1.036 0.000 0.000 1.073
30-Mar-07 3788.85 3821.55 347.20 343.65 0.863 -1.022 -0.881 0.745
n = 21 Total 2.402 -42.336 43.101 79.5613
Chart showing both Stock return and Market return
0
S eries 1
RETURNS
-2
S eries 2
-4
-6
-8
-1 0
Series 1: Market Return

Series 2: Stock Return
46
n. Σx^2-(Σx) ^2
Beta = 21* 43.101 - (2.402)(-42.336)

21* 79.5613 - (2.402) (2.402)
Beta = 0.604
Volatility = Standard Deviation of Return on RANBAXY

= 1.871
Interpretation:
The Beta should fall between 0 and 1 for the risk less investment. Here from the above
calculations it is clear that the RANBAXY is having Beta less than one which indicates
less risky investment.
47
4.2 BAJAJAUTO - From 1-3-2007 to 31-3-2007
BETA AND VOLATILITY

NIFTY BAJAJAUTO Return Return
01-Mar-07 3745.40 3811.20 2618.00 2521.95 1.002 3.669 3.676 1.004
02-Mar-07 3811.65 3726.75 2505.00 2544.05 -2.227 1.559 -3.471 4.960
05-Mar-07 3726.50 3576.50 2503.00 2453.75 -1.522 -1.968 2.995 2.316
06-Mar-07 3577.15 3655.65 2469.70 2461.10 2.194 -0.348 - 0.763 4.814
07-Mar-07 3661.55 3626.85 2535.00 2451.40 -0.948 -3.298 3.126 0.899
08-Mar-07 3627.25 3761.65 2499.00 2510.85 3.705 0.474 1.756 13.727
09-Mar-07 3761.85 3718.00 2525.00 2488.70 -1.166 -1.438 1.677 1.360
12-Mar-07 3717.45 3734.60 2518.00 2512.85 0.461 -0.204 - 0.094 0.213
13-Mar-07 3735.25 3770.55 2515.00 2521.00 0.945 0.238 0.225 0.893
14-Mar-07 3768.40 3641.10 2478.00 2529.55 -3.378 2.080 7.206 11.411
15-Mar-07 3644.90 3643.60 2541.00 2492.75 -0.036 -1.696 0.061 0.0013
16-Mar-07 3639.35 3608.55 2539.00 2489.75 -0.846 -1.939 1.640 0.716
19-Mar-07 3611.30 3678.90 2440.00 2515.45 1.872 3.092 5.788 3.504
20-Mar-07 3680.35 3697.60 2525.00 2501.20 0.469 -0.942 - 0.442 0.220
21-Mar-07 3697.70 3764.55 2510.00 2498.85 1.808 -0.444 -0.803 3.269
22-Mar-07 3764.50 3875.90 2575.00 2567.45 2.959 - 0.293 0.867 8.756
23-Mar-07 3876.75 3861.05 2580.00 2529.15 -0.405 -1.971 0.798 0.164
26-Mar-07 3863.45 3819.95 2532.15 2507.15 -1.126 -0.987 1.111 1.268
28-Mar-07 3818.75 3761.10 2510.00 2466.65 -1.510 -1.727 2.608 2.280
29-Mar-07 3759.15 3798.10 2455.00 2421.40 1.036 -1.369 -1.418 1.073
30-Mar-07 3788.85 3821.55 2439.95 2427.60 0.863 -0.506 -0.437 0.745
n = 21 Total 2.402 -8.018 26.106 79.5613
48
Chart showing both the market and stock returns of BAJAJAUTO
1
RETURNS
S eries 1
0 S eries 2
-1
-2
-3
-4

49
n. Σx^2-(Σx) ^2
Beta = 21* 26.106 - (2.402) (-8.018)

21* 79.5613 - (2.402) (2.402)
Beta = 0.341
Volatility = Standard Deviation of Return on BAJAJAUTO

= 1.757
Interpretation:
calculations it is clear that the BAJAJAUTO is having Beta less than one which indicates
50
4.3 ACC - From 1-3-2007 to 31-3-2007 - BETA AND VOLATILITY

NIFTY ACC Return Return
01-Mar-07 3745.40 3811.20 902.05 876.30 1.757 -2.855 - 5.016 3.087
02-Mar-07 3811.65 3726.75 885.00 854.45 -2.227 -3.452 7.688 4.960
05-Mar-07 3726.50 3576.50 859.00 811.40 -4.025 -5.541 22.302 16.201
06-Mar-07 3577.15 3655.65 820.00 809.95 2.194 -1.226 -2.690 4.814
07-Mar-07 3661.55 3626.85 864.00 810.50 -0.948 -6.192 5.870 0.899
08-Mar-07 3627.25 3761.65 821.00 833.15 8.844 1.480 13.089 78.216
09-Mar-07 3761.85 3718.00 840.00 781.15 -1.166 -7.005 8.168 1.360
12-Mar-07 3717.45 3734.60 780.00 746.70 0.461 -4.269 - 1.968 0.213
13-Mar-07 3735.25 3770.55 769.00 749.35 0.945 -2.555 - 2.414 0.893
14-Mar-07 3768.40 3641.10 722.10 746.95 -3.378 0.034 - 0.114 11.411
15-Mar-07 3644.90 3643.60 750.00 731.80 -0.036 -2.427 0.087 0.001
16-Mar-07 3639.35 3608.55 735.70 723.15 -0.846 -1.705 1.442 0.716
19-Mar-07 3611.30 3678.90 730.00 739.35 1.872 1.281 2.398 3.504
20-Mar-07 3680.35 3697.60 745.00 749.20 0.469 0.564 0.265 0.220
21-Mar-07 3697.70 3764.55 752.00 752.75 1.808 0.099 0.179 3.269
22-Mar-07 3764.50 3875.90 755.00 753.70 2.959 -0.172 - 0.509 8.756
23-Mar-07 3876.75 3861.05 755.00 746.30 -0.405 -1.152 0.466 0.164
26-Mar-07 3863.45 3819.95 750.00 733.60 -1.126 -2.187 2.462 1.268
28-Mar-07 3818.75 3761.10 732.85 734.70 -1.510 0.252 -0.380 2.280
29-Mar-07 3759.15 3798.10 734.00 734.75 1.036 0.102 0.105 1.073
30-Mar-07 3788.85 3821.55 738.80 735.25 0.863 -0.480 -0.414 0.745
n = 21 Total 2.402 -37.406 51.016 79.5613
51
Chart showing both Market return and Stock return of ACC
10
2 S eries 1
RETURNS
0 S eries 2
-2
-4
-6
-8

52
n. Σx^2-(Σx) ^2
Beta = 21* 51.016 - (2.402)(-37.406)

21* 79.5613 - (2.402) (2.402)
Beta = 0.697
Volatility = Standard Deviation of Return on ACC

= 2.421
Interpretation:
calculations it is clear that the ACC is having Beta less than one which indicates less
risky investment.
4.4 HEROHONDA - From 1-3-2007 to 31-3-2007

BETA AND VOLATILITY
53
NIFTY HEROHONDA Return Return
01-Mar-07 3745.40 3811.20 658.30 668.25 1.757 1.511 2.655 3.087
02-Mar-07 3811.65 3726.75 662.10 692.75 -2.227 0.046 -0.102 4.960
05-Mar-07 3726.50 3576.50 681.10 684.95 -4.025 0.565 -2.274 16.201
06-Mar-07 3577.15 3655.65 686.00 667.20 2.194 -2.740 -6.011 4.814
07-Mar-07 3661.55 3626.85 675.00 666.75 -0.948 -1.222 1.158 0.899
08-Mar-07 3627.25 3761.65 660.05 668.35 3.705 1.257 4.657 13.727
09-Mar-07 3761.85 3718.00 670.00 691.40 -1.166 3.194 -3.724 1.360
12-Mar-07 3717.45 3734.60 691.00 698.80 0.461 1.129 0.524 0.213
13-Mar-07 3735.25 3770.55 707.50 697.85 0.945 -1.364 -1.289 0.893
14-Mar-07 3768.40 3641.10 684.50 677.20 -3.378 -1.066 3.601 11.411
15-Mar-07 3644.90 3643.60 680.00 673.30 -0.036 -0.985 0.035 0.0013
16-Mar-07 3639.35 3608.55 685.00 650.20 -0.846 -5.080 4.298 0.716
19-Mar-07 3611.30 3678.90 655.00 640.35 1.872 -0.022 -0.041 3.504
20-Mar-07 3680.35 3697.60 647.00 635.75 0.469 -1.739 -0.815 0.220
21-Mar-07 3697.70 3764.55 639.90 651.10 1.808 1.750 3.164 3.269
22-Mar-07 3764.50 3875.90 656.90 685.25 2.959 4.316 12.771 8.756
23-Mar-07 3876.75 3861.05 685.00 677.85 -0.405 -1.043 0.422 0.164
26-Mar-07 3863.45 3819.95 680.00 667.40 -1.126 -1.853 2.086 1.268
28-Mar-07 3818.75 3761.10 640.70 658.20 -1.510 2.731 -4.124 2.280
29-Mar-07 3759.15 3798.10 652.10 676.60 1.036 0.037 0.038 1.073
30-Mar-07 3788.85 3821.55 674.80 688.75 0.863 0.020 0.017 0.745
n = 21 Total 2.402 -0.558 17.046 79.5613
Chart showing both Market Return and Stock Return of HEROHONDA
54
6
S e rie s 1
RETURNS
0
S e rie s 2
-2
-4
-6


n. Σx^2-(Σx) ^2
55
Beta = 21* 17.046 - (2.402)(-0.558)
21* 79.5613 - (2.402) (2.402)
Beta = 0.216
Volatility = Standard Deviation of Return on HEROHONDA

= 2.134
Interpretation:
calculations it is clear that the HEROHONDA is having Beta less than one which
indicates less risky investment.
4.5 TATASTEEL - From 1-3-2007 to 31-3-2007

BETA AND VOLATILITY

NIFTY TATASTEEL Return Return
56
01-Mar-07 3745.40 3811.20 445.70 451.10 1.757 1.212 2.129 3.087
02-Mar-07 3811.65 3726.75 455.00 443.45 -2.227 -2.538 5.652 4.960
05-Mar-07 3726.50 3576.50 441.30 420.75 -4.025 -4.657 18.744 16.201
06-Mar-07 3577.15 3655.65 424.00 419.25 2.194 -1.120 -2.457 4.814
07-Mar-07 3661.55 3626.85 422.20 413.25 -0.948 -2.120 2.010 0.899
08-Mar-07 3627.25 3761.65 417.00 427.75 3.705 2.578 9.551 13.727
09-Mar-07 3761.85 3718.00 429.95 433.80 -1.166 0.897 -1.046 1.360
12-Mar-07 3717.45 3734.60 437.70 435.50 0.461 -0.503 -0.232 0.213
13-Mar-07 3735.25 3770.55 437.00 444.75 0.945 1.773 1.675 0.893
14-Mar-07 3768.40 3641.10 432.00 429.95 -3.378 -0.475 1.605 11.411
15-Mar-07 3644.90 3643.60 435.00 433.25 -0.036 -0.402 0.014 0.001
16-Mar-07 3639.35 3608.55 435.00 430.55 -0.846 -1.023 0.864 0.716
19-Mar-07 3611.30 3678.90 434.00 429.90 1.872 -0.945 -4.502 3.504
20-Mar-07 3680.35 3697.60 432.00 423.45 0.469 -1.979 -1.185 0.220
21-Mar-07 3697.70 3764.55 435.00 430.15 1.808 -1.115 4.616 3.269
22-Mar-07 3764.50 3875.90 435.00 442.05 2.959 1.621 6.998 8.756
23-Mar-07 3876.75 3861.05 449.90 438.30 -0.405 -2.578 1.318 0.164
26-Mar-07 3863.45 3819.95 438.30 441.80 -1.126 0.798 2.136 1.268
28-Mar-07 3818.75 3761.10 441.00 441.35 -1.510 0.079 -1.436 2.280
29-Mar-07 3759.15 3798.10 441.00 439.95 1.036 -0.238 2.123 1.073
30-Mar-07 3788.85 3821.55 442.10 449.65 0.863 1.708 2.436 0.745
n = 21 Total 2.402 -9.027 51.013 79.5613
Chart showing both Market Returns and Stock Returns of TATASTEEL
57
5
4
3
2
1
RETURNS
0 S eries 1
-1 S eries 2
-2
-3
-4
-5
-6


n. Σx^2-(Σx) ^2
Beta = 21* 51.013- (2.402)(-9.027)

21* 79.5613 - (2.402) (2.402)
Beta = 0.653
58
Volatility = Standard Deviation of Return on TATASTEEL
= 1.770
Interpretation:
calculations it is clear that the TATASTEEL is having Beta less than one which indicates
4.6 Dr REDDY - From 1-3-2007 to 31-3-2007

BETA AND VOLATILITY

NIFTY Dr.REDDY Return Return
01-Mar-07 3745.40 3811.20 670.00 661.75 1.757 -1.231 -2.162 3.087
02-Mar-07 3811.65 3726.75 655.00 660.10 -2.227 0.778 -1.733 4.960
05-Mar-07 3726.50 3576.50 601.00 617.50 -4.025 2.745 -11.048 16.201
59
06-Mar-07 3577.15 3655.65 630.00 622.55 2.194 -1.182 -2.593 4.814
07-Mar-07 3661.55 3626.85 635.00 635.25 -0.948 0.039 -0.036 0.899
08-Mar-07 3627.25 3761.65 641.00 668.55 3.705 4.297 15.920 13.727
09-Mar-07 3761.85 3718.00 679.90 660.00 -1.166 -2.926 3.411 1.360
12-Mar-07 3717.45 3734.60 678.00 658.40 0.461 -2.890 -2.429 0.213
13-Mar-07 3735.25 3770.55 660.00 661.00 0.945 0.151 0.288 0.893
14-Mar-07 3768.40 3641.10 645.00 648.45 -3.378 0.534 -1.803 11.411
15-Mar-07 3644.90 3643.60 655.00 672.45 -0.036 2.664 -0.095 0.0013
16-Mar-07 3639.35 3608.55 681.00 683.60 -0.846 0.382 -0.323 0.716
19-Mar-07 3611.30 3678.90 689.00 677.25 1.872 -1.705 -3.191 3.504
20-Mar-07 3680.35 3697.60 683.00 682.40 0.469 -0.087 -0.040 0.220
21-Mar-07 3697.70 3764.55 682.40 679.20 1.808 -0.469 -0.847 3.269
22-Mar-07 3764.50 3875.90 690.00 682.00 2.959 -1.159 -3.429 8.756
23-Mar-07 3876.75 3861.05 690.00 686.30 -0.405 -0.536 0.217 0.164
26-Mar-07 3863.45 3819.95 689.00 682.15 -1.126 -0.994 1.119 1.268
28-Mar-07 3818.75 3761.10 654.90 692.15 -1.510 5.687 -8.587 2.280
29-Mar-07 3759.15 3798.10 692.00 706.50 1.036 2.095 2.170 1.073
30-Mar-07 3788.85 3821.55 714.50 728.25 0.863 1.924 1.596 0.745
n = 21 Total 2.402 8.117 -13.595 79.5613
Chart showing both Stock return and Market return
60
8
2
RETURNS
S eries 1
S eries 2
0
-2
-4
-6


n. Σx^2-(Σx) ^2
Beta = 21* (-13.595) - (2.402)(8.117)

21* 79.5613 - (2.402) (2.402)
61
Beta = -0.161
Volatility = Standard Deviation of Return on DR. REDDY’S

= 2.203
Interpretation:
The Beta should fall between 0 and 1 for the riskless investment. Here from the above
calculations it is clear that the DR.REDDY’S is having Beta less than one(negative)
which indicates less risky investment.
4.7 MOSERBAER - From 1-3-2007 to 31-3-2007

NIFTY MOSERBAER Return Return
01-Mar-07 3745.40 3811.20 334.40 317.70 1.757 -4.994 8.774 1.004
62
02-Mar-07 3811.65 3726.75 320.00 323.30 -2.227 1.031 2.296 4.960
05-Mar-07 3726.50 3576.50 320.00 299.40 -4.025 -6.437 25.909 2.316
06-Mar-07 3577.15 3655.65 309.80 313.70 2.194 1.259 2.762 4.814
07-Mar-07 3661.55 3626.85 321.65 303.40 -0.948 -5.674 5.379 0.899
08-Mar-07 3627.25 3761.65 307.15 313.00 3.705 1.905 7.058 13.727
09-Mar-07 3761.85 3718.00 316.00 307.00 -1.166 -2.848 3.320 1.360
12-Mar-07 3717.45 3734.60 308.55 311.00 0.461 0.794 0.366 0.213
13-Mar-07 3735.25 3770.55 310.90 319.60 0.945 2.806 1.971 0.893
14-Mar-07 3768.40 3641.10 305.00 300.25 -3.378 -1.557 5.259 11.411
15-Mar-07 3644.90 3643.60 309.90 297.45 -0.036 -4.017 0.144 0.0013
16-Mar-07 3639.35 3608.55 300.00 291.70 -0.846 -2.766 2.340 0.716
19-Mar-07 3611.30 3678.90 298.00 291.75 1.872 -2.097 -3.925 3.504
20-Mar-07 3680.35 3697.60 295.70 293.85 0.469 -0.625 -0.293 0.220
21-Mar-07 3697.70 3764.55 294.00 295.05 1.808 0.357 0.645 3.269
22-Mar-07 3764.50 3875.90 300.00 301.45 2.959 0.483 1.429 8.756
23-Mar-07 3876.75 3861.05 302.00 298.65 -0.405 -1.109 0.449 0.164
26-Mar-07 3863.45 3819.95 301.00 300.60 -1.126 -0.132 0.148 1.268
28-Mar-07 3818.75 3761.10 298.00 290.70 -1.510 -2.449 3.698 2.280
29-Mar-07 3759.15 3798.10 286.90 292.90 1.036 2.091 2.166 1.073
30-Mar-07 3788.85 3821.55 295.00 299.10 0.863 1.390 1.199 0.745
n = 21 Total 2.402 -22.589 71.094 79.5613
Chart showing both the market and stock returns of MOSERBAER
63
6
0
RETURNS
S eries 1
S eries 2
-2
-4
-6
-8


n. Σx^2-(Σx) ^2
Beta = 21* 71.094 - (2.402) (-22.589)

21* 79.5613 - (2.402) (2.402)
64
Beta = 0.929
Volatility = Standard Deviation of Return on MOSERBAER

= 2.662
Interpretation:
calculations it is clear that the MOSERBAER is having Beta less than one which
4.8 MARUTI UDYOG LIMITED - From 1-3-2007 to 31-3-2007

NIFTY MARUTIUDYOG Return Return
01-Mar-07 3745.40 3811.20 848.00 840.90 1.757 -0.837 - 1.471 3.087
65
02-Mar-07 3811.65 3726.75 844.00 833.10 -2.227 -1.291 2.875 4.960
05-Mar-07 3726.50 3576.50 825.00 772.90 -4.025 -6.315 25.418 16.201
06-Mar-07 3577.15 3655.65 790.00 791.75 2.194 0.221 0.485 4.814
07-Mar-07 3661.55 3626.85 797.00 774.85 -0.948 -2.779 2.634 0.899
08-Mar-07 3627.25 3761.65 787.00 792.35 8.844 0.679 6.005 78.216
09-Mar-07 3761.85 3718.00 792.00 787.20 -1.166 -0.606 0.706 1.360
12-Mar-07 3717.45 3734.60 789.80 797.10 0.461 0.924 0.426 0.213
13-Mar-07 3735.25 3770.55 800.00 801.55 0.945 0.194 0.183 0.893
14-Mar-07 3768.40 3641.10 791.00 791.75 -3.378 0.095 - 0.321 11.411
15-Mar-07 3644.90 3643.60 804.10 796.15 -0.036 0.989 - 0.036 0.001
16-Mar-07 3639.35 3608.55 798.00 780.10 -0.846 -0.022 0.018 0.716
19-Mar-07 3611.30 3678.90 786.00 788.85 1.872 0.362 0.677 3.504
20-Mar-07 3680.35 3697.60 792.00 789.65 0.469 -0.297 - 0.139 0.220
21-Mar-07 3697.70 3764.55 796.00 791.65 1.808 -0.546 - 0.987 3.269
22-Mar-07 3764.50 3875.90 790.50 831.30 2.959 5.161 15.271 8.756
23-Mar-07 3876.75 3861.05 833.00 840.65 -0.405 0.918 - 0.372 0.164
26-Mar-07 3863.45 3819.95 837.15 821.70 -1.126 -1.845 2.077 1.268
28-Mar-07 3818.75 3761.10 775.25 796.65 -1.510 2.760 - 4.168 2.280
29-Mar-07 3759.15 3798.10 828.50 812.45 1.036 -1.937 - 2.006 1.073
30-Mar-07 3788.85 3821.55 828.50 820.20 0.863 -1.002 - 0.865 0.745
n = 21 Total 2.402 -5.174 46.410 79.5613
Chart showing both Market return and Stock return of MARUTI UDYOG
66
6
0
RETURNS
S eries 1
S eries 2
-2
-4
-6
-8


n. Σx^2-(Σx) ^2
Beta = 21* 46.410 - (2.402)(-5.174)

21* 79.5613 - (2.402) (2.402)
Beta = 0.593
67
Volatility = Standard Deviation of Return on MARUTI UDYOG LTD
= 2.182
Interpretation:
calculations it is clear that the MARUTI UDYOG LIMITED is having Beta less than one
which indicates less risky investment.
4.9 M & M - From 1-3-2007 to 31-3-2007 - BETA AND VOLATILITY

NIFTY M&M Return Return
01-Mar-07 3745.40 3811.20 816.00 805.20 1.757 -1.323 -2.324 3.087
02-Mar-07 3811.65 3726.75 799.00 770.50 -2.227 -3.567 7.944 4.960
05-Mar-07 3726.50 3576.50 744.80 709.20 -4.025 -4.780 19.239 16.201
06-Mar-07 3577.15 3655.65 716.00 725.15 2.194 1.278 2.804 4.814
68
07-Mar-07 3661.55 3626.85 738.70 761.05 -0.948 3.025 - 2.868 0.899
08-Mar-07 3627.25 3761.65 765.30 765.60 3.705 0.039 0.144 13.727
09-Mar-07 3761.85 3718.00 775.00 733.90 -1.166 -5.303 6.183 1.360
12-Mar-07 3717.45 3734.60 739.25 738.25 0.461 -0.135 - 0.062 0.213
13-Mar-07 3735.25 3770.55 740.00 760.35 0.945 2.750 2.599 0.893
14-Mar-07 3768.40 3641.10 750.00 749.10 -3.378 -0.120 0.405 11.411
15-Mar-07 3644.90 3643.60 760.00 747.05 -0.036 -1.704 0.061 0.001
16-Mar-07 3639.35 3608.55 746.00 730.70 -0.846 -2.051 1.735 0.716
19-Mar-07 3611.30 3678.90 748.70 738.90 1.872 -1.309 - 2.450 3.504
20-Mar-07 3680.35 3697.60 744.00 743.85 0.469 -0.020 - 0.009 0.220
21-Mar-07 3697.70 3764.55 749.00 753.50 1.808 0.600 1.084 3.269
22-Mar-07 3764.50 3875.90 758.00 781.60 2.959 3.113 9.211 8.756
23-Mar-07 3876.75 3861.05 779.80 796.80 -0.405 2.180 - 0.833 0.164
26-Mar-07 3863.45 3819.95 800.00 788.55 -1.126 -1.431 1.611 1.268
28-Mar-07 3818.75 3761.10 785.00 762.35 -1.510 -2.885 3.318 2.280
29-Mar-07 3759.15 3798.10 792.80 757.75 1.036 -4.421 -4.580 1.073
30-Mar-07 3788.85 3821.55 757.00 780.40 0.863 3.091 2.668 0.745
n = 21 Total 2.402 -12.973 45.880 79.5613
Chart showing both Market Return and Stock Return of M & M
69
5
4
3
2
1
RETURNS
0 S eries 1
-1 S eries 2
-2
-3
-4
-5
-6


n. Σx^2-(Σx) ^2
Beta = 21* 45.880 - (2.402)(-12.973)

21* 79.5613 - (2.402) (2.402)
Beta = 0.597
70
Volatility = Standard Deviation of Return on M & M
= 2.635
Interpretation:
calculations it is clear that the M & M is having Beta less than one which indicates less
risky investment.
4.10 ASHOKLEYLAND - From 1-3-2007 to 31-3-2007

BETA AND VOLATILITY

NIFTY ASHOKLEY Return Return
01-Mar-07 3745.40 3811.20 40.25 40.35 1.757 0.248 0.436 3.087
02-Mar-07 3811.65 3726.75 40.00 40.15 -2.227 0.375 0.835 4.960
05-Mar-07 3726.50 3576.50 39.90 36.55 -4.025 -8.396 33.793 16.201
71
06-Mar-07 3577.15 3655.65 37.30 38.20 2.194 2.413 5.294 4.814
07-Mar-07 3661.55 3626.85 39.00 37.95 -0.948 -2.692 2.552 0.899
08-Mar-07 3627.25 3761.65 38.90 39.50 3.705 1.542 5.713 13.727
09-Mar-07 3761.85 3718.00 39.50 40.05 -1.166 1.392 -1.623 1.360
12-Mar-07 3717.45 3734.60 40.30 41.30 0.461 2.481 1.441 0.213
13-Mar-07 3735.25 3770.55 41.30 41.00 0.945 -0.726 0.686 0.893
14-Mar-07 3768.40 3641.10 39.10 39.10 -3.378 0.000 0.000 11.411
15-Mar-07 3644.90 3643.60 39.60 39.20 -0.036 -1.010 0.003 0.001
16-Mar-07 3639.35 3608.55 39.50 39.10 -0.846 -1.012 0.856 0.716
19-Mar-07 3611.30 3678.90 39.10 39.35 1.872 0.639 1.196 3.504
20-Mar-07 3680.35 3697.60 39.80 39.70 0.469 - 0.251 -0.118 0.220
21-Mar-07 3697.70 3764.55 39.95 40.85 1.808 2.252 4.071 3.269
22-Mar-07 3764.50 3875.90 41.00 41.45 2.959 1.621 6.998 8.756
23-Mar-07 3876.75 3861.05 41.45 40.95 -0.405 -1.206 0.488 0.164
26-Mar-07 3863.45 3819.95 41.10 40.95 -1.126 -0.365 0.411 1.268
28-Mar-07 3818.75 3761.10 39.75 38.80 -1.510 -2.390 2.609 2.280
29-Mar-07 3759.15 3798.10 38.80 37.30 1.036 -3.866 -5.049 1.073
30-Mar-07 3788.85 3821.55 37.80 38.40 0.863 1.587 1.369 0.745
n = 21 Total 2.402 -7.364 61.961 79.5613
Chart showing both Market Returns and Stock Returns of ASHOKLEYLAND
72
6
0
RETURNS
S eries 1
-2
S eries 2
-4
-6
-8
-10


n. Σx^2-(Σx) ^2
Beta = 21* 61.961- (2.402)(-7.364)

21* 79.5613 - (2.402) (2.402)
Beta = 0.791
73
Volatility = Standard Deviation of Return on ASHOKLEYLAND
= 2.521
Interpretation:
calculations it is clear that the ASHOK LEYLAND is having Beta less than one which
OVERALL INTERPRETATION
CHART SHOWING VARIOUS COMPANY’S AND THEIR

RESPECTIVE BETA VALUES
74
1
0.8
0.6
0.4
BETA
0.2
-0.2
AC AU
M
RA
HE
TA ON
DR
AS
BA X Y
M D DY
M RBA
O
AR
& UDY
H
C
TA
.R EL
NB
RO
JA
SE 'S
OK
M
E
UT R
J
A
ST A
-0.4 H
LE
I
E
TO
YL
E
D
AN
O
G
D
INTERPRETATION :
The Beta is the measure of the risk involved when invested in Stock Options of a
particular company. The Beta value should fall between 0 and 1 for a riskless investment.
If the Beta value is more than 1 then it involves a high risk.
Here from the above chart it can be seen that all the ten companies have Beta value less
than one . But from investors point of veiw investing in DR.REDDY’S would have les
risk when compared to all other companies followed by HEROHONDA,BAJAJAUTO,
RANBAXY, etc.
75
CHAPTER 5
FINDINGS, SUGGESTIONS AND

CONCLUSIONS
SUMMARY
76
FINDINGS
 MOSERBAER has the maximum Beta when compared to other companies, so

investing in MOSERBAER will carry high risk.
 Volatility of MOSERBAER company is more so it will produce high output

when compared to other companies, but it carries a lot of risk.
 Volatility Indian market is not constant and is varying over time.
 The investor can reduce his loss even if the market moves against his
perception by using stock options.
CONCLUSION
77
Options are financial instruments that provide a great deal of flexibility for the investor in
making investment decisions.Options trading has thrown up some great success stories in
the world of high finance. But it has also destroyed established traders and individuals.
Users have to; thus, exercise a certain amount of caution. Options are traded on a variety
of securities, including equities. Given the basic operations, investors have to understand
certain key terms. These are the critical factors that affect the price of an option.
It can be concluded that if the investor has a good perception about the market and the
strategies (Calculation of Beta and volatality) he will be able to make good return from
the market . If the investors change the strategies according to the fluctuations then only
he will be able to make profit with minimum possibility of loss since stock option is
considered as a good tool to reduce the possibility of loss in market if the market moves
against his perception. From the Analysis and the Interpretation it can be said that the
Risk profile is the same across all the stock options. But the findings are restricted as
there are limitations of the study.
78
SUGGESTIONS
 Investing in HEROHONDA will be usefull as it has balance between Beta and

volatility,.
 With a good perception of the market , investor can use Stock Options as a profit
making strategy.
 If the Beta value is less than one then it is a risk less investment. If Beta is more
than one it carries high risk with it and its better not to invest.
79
BIBLIOGRAPHY
 WWW.NSEINDIA.COM
 WWW.BSE.COM
 WWW.ECONOMICTIMES.COM
 WWW.KARVY.COM
 Prasanna Chandra, Inestment Analysis and Portfolio Management,

TATA McGraw-Hill.
 Fischer and Jordan, Security Analysis and Portfolio Management,

Prentice hall.
80

Competitive Strategy To Perform Good Risk Analysis of Options

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A STUDY TO UNDERSTAND COMPLEXITIES AND FRAME A

COMPETITIVE STRATEGY TO PERFORM GOOD RISK

Under the guidance of

KRISTU JAYANTI COLLEGE OF MANAGEMENT &

I here by declare that this study titled “A STUDY TO UNDERSTAND

This is to certify that this project entitled “A STUDY TO UNDERSTAND

Mr. EDWARD ALOYSIUS Dr. ARUN KUMAR

CHAPTER CONTENTS PAGE

4 ANALYSIS AND INTERPRETATION 44 – 76

5 SUMMARY OF FINDINGS, CONCLUSIONS 77 – 79

TABLE NO. CONTENTS PAGE NO.

In finance, a derivative is a financial instrument that is derived from an underlying asset's

Derivatives can be based on different types of assets such as Commodities, Equities or

The main types of derivatives are :

A futures contract is a standardized contract to buy or sell a specific security at a future

A futures contract is a standardized contract to buy or sell a specific security at a

A stock futures contract is a standardized contract to buy or sell a specific stock at

o Quarter sigma order size would be calculated taking four snapshots in a

Eligibility criteria for stocks on account of corporate restructuring:

Discontinuance / Exit of Futures & Options Contracts on stocks :

o If a stock does not conform to the above eligibility criteria for a

Re-Introduction of Stocks Discontinued from Futures & Options Trading :

Discontinuance of Futures & Options Contracts on index:

The above requirements as prescribed by SEBI need to be necessarily met for

Order Matching Rules

o Limit Order: An order for buying or selling at a limit price or better, if

o There are two types of Market orders:

All orders shall have the following attributes:

o Order Type (Limit / Market PF/Market PC/ Stop Loss)

Holidays Date Day

SESSION NAME FROM TO

LIMITED TRADING MEMBERSHIP FOR BSE DERIVATIVES

A Limited Trading Member (LTM) is a non-clearing trading participant having

What are the advantages of becoming a LTM?

There are following significant advantages in becoming LTM of the Derivatives

Direct access to the on-line Derivatives Trading System of the Exchange

Access to new products as and when they are introduced

Who can become LTM?

o Minimum networth of Rs. 25 lakhs

Charges Payable By LTM :

One-time (non-refundable) contribution to Trade Guarantee Fund (TGF) : Rs.1,00,000

Annual Membership Charges : RS 25,000.

Minimum Security Deposit:

NEED AND IMPORTANCE OF THE STUDY

1. To have a basic knowledge about stock option.

OPERATIONAL DEFINITIONS OF CONCEPTS

Research will be conducted on ten companies.

The procedure adopted will be convenient sampling.

5. LIMITATIONS OF THE STUDY:

Stock Broking Services

Distribution of financial products

Our monthly magazine, Finapolis, provides up-dated market information on market

Private client group

Mr. C. Parthasarathy (DIRECTOR)

Mr. M. Yugandhar (DIRECTOR)

Mr. M.S. Ramakrishna (DIRECTOR)

Mr. Akash Mehta (DIRECTOR)

Mr. Peter Wing Hung So (DIRECTOR)

Among the top 5 stock brokers in India (4% of NSE volumes)

India's No. 1 Registrar & Securities Transfer Agents

Among the to top 3 Depository Participants

Largest Network of Branches & Business Associates