Study of Exchange Fund Trading

FINAL REPORT
ON
STUDY OF EXCHANGE FUND PAY-IN AND PAY-OUT

PROCESS
BY
Ankita Sinha
17BSP0398
The Calcutta Stock Exchange Limited
REPORT
ON
STUDY OF EXCHANGE FUND PAY-IN AND PAY-OUT

PROCESS
BY
Ankita Sinha
17BSP0398
2
A Report Submitted in partial fulfilment of
PGPM Program of
IBS Kolkata
Distribution List:
o AsisMaity (Company guide) – Market Operations(M.O.P.) Manager

o Prof. Sujoy Dhar (Faculty guide)
Date of submission:15th May 2018
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Name: Ankita Sinha Enrollment No:17BSP0398
Mobile No: 9830024418;
IBS Campus: Kolkata 7595802166 Email Id: ankita.sinha17@ibsindia.org
SIP FINAL REPORT
TITLE OF SIP FINAL REPORT --- STUDY OF EXCHANGE FUND PAY-IN

&PAY-OUT PROCESS
AREA OF SIP FINAL REPORT--- MARKET OPERATIONS
AUTHORIZATION
The Final Report issubmitted in partial fulfilment of thePGPM Program of
IBS Kolkata.
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The success and final outcome of this project required a lot of guidance and
assistance from:
Distribution List:
o Asis Maity (Company guide) – Market Operations(M.O.P.) Manager

o Prof. Sujoy Dhar (Faculty guide)
ACKNOWLEDGEMENT
The success and final outcome of this project required a lot of guidance and assistance from
many people and I am extremely privileged to have got this all along the completion of my
project. All that I have done is only due to such supervision and assistance and I would not forget
to thank them.I have taken efforts in this project. However, it would not have been possible
without the kind support and help of many individuals and organizations. I would like to extend
my sincere thanks to all of them.
I am grateful and thankful to Mr.Asis Maity, for providing me an opportunity to do the project
work and giving me all support and guidance which made me complete the project duly. I am
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extremely thankful to him for providing such a nice support and guidance, although he had busy
schedule managing the corporate affairs.
I owe my deep gratitude to our project guide Prof. Sujoy Dhar, who took keen interest on our
project work and guided us all along, till the completion of our project work by providing all the
necessary information for developing a good system.
I heartily thank the internal project guide, Mr. Ashim Guin,[Head of the Market
Operations]of the Market Operations (M.O.P.) department for providing me the assistance
and suggestions in completing the project work duly. I am extremely thankful to him for
providing such a nice support and guidance, although he had busy schedule.
I would not forget to remember Mr. Arunava Ghosh and Mr. Kishore Barik of the Calcutta
Stock Exchange Ltd. for their encouragement and more over for their timely support and
guidance till the completion of our project work.
I would like to express my gratitude towards the industry members of The Calcutta Stock
Exchange Ltd.for their kind co-operation and encouragement which help me in completion of
this project.
I am thankful to and fortunate enough to get constant encouragement, support and guidance from
all Teaching staffs of the Market Operations (M.O.P) department who helped us in
successfully completing our project work. Also, I would like to extend our sincere esteems to all
staff in laboratory for their timely support.
TABLE OF CONTENTS
SL NO CONTENT PAGE NO.
1 Abstract of the project 9 - 11
2 Executive Summary 11-13
3 Introduction 14-17
 Background of company
 Regulatory Framework governing the
Exchange Market
6
4 Market Operations of CSE 18 – 24
 Market operations department of CSE
 Process of Pay-in and Pay-out of funds under
the Settlement process.
 Online Payment of Funds / Securities.
 Entities involved in the Clearing and
Settlement process of funds pay-in and pay-out.
5 Survey of Existing Literature 24 – 26
6 Objective of Study 27
7 Research Design 27 – 28
 Research Methodology
 Source of Data
 Time Period for Study
 Tools and Techniques
8 Work done in the Organization 29 – 30
9 Analysis of Industry 30 – 32
 SWOT Analysis of Industry
10 Analysis of Primary and Secondary Data used for 33 – 46

Study
 Graphical Representation showing the Clearing
and Settlement process
 Valan Report
 Chart showing Settlement cycle in CM
segment
 Statement showing Comparative Study of
funds pay in and pay out of companies working
under NSE and BSE with CSE.
11 Settlement Segment 46-48
12 Future and Options Segment for trading 48 – 49
13 Conclusion 49 – 50
14 Recommendation 50 – 51
15 Limitation of Study 51
16 Annexures 51 - 74
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17 Bibliography 75
1. ABSTRACT OF THE PROJECT
The Calcutta Stock Exchange Ltd. (CSE) is one of the oldest stock exchanges in the
country. Under the initiative of SEBI it became a body corporate in the year 2007.
Among the prominent shareholders of the Exchange are well known corporate houses
like West Bengal Industrial Development Corporation, Hindustan National Glass,
Emami, Patton Industries etc. and Bombay Stock Exchange ltd. Besides being a 100 year
old exchange which has witnessed many milestones in the growth of capital market in
India, today it offers a wide variety of products under the same roof.
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Market Operations (M.O.P) Department in CSE is amongst the most crucial in the Exchange.
The activitiesin this department involves:-
Pay-in of securities in Clearing member's pool account - Transfer of stocks from client's De-mat
account to broker's / clearing member's account and thereby the broker/ clearing member will
transfer those stocks to the exchange for settlement.
Pay-in of funds – Transfer of money by broker to exchange towards settlement dues for that
particular day.
Pay-out of securities – Transfer of stocks by broker from his pool account to the client's Demat
account.
Pay-out of funds - Transfer of money from exchange to broker towards settlement dues for that
particular day.
Funds Pay-in and Pay-out is done in the Exchange departments of Cash and fund operations of
NSE and BSE.
The daily trading process of the Exchange funds is performed in the Pay-in and Pay-out basis
under the Settlement process of BSE and NSE cash and fund operations departments with CSE
by following the SEBI rules and guidelines.
Settlement is deemed to be complete upon declaration and release of pay-out of funds and
securities.
Different Forms of Business Start are as follows: (that are handled by me as an intern)
Forms for Business Start in CSE, BSE & NSE (Cash and F&O)
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Forms for NSE Cash Segment
Forms for NSE F&O Segment
Forms of BSE Cash Segment
Different forms of activities done in the Market Operations: (that are handled by me as an
intern)
 Tracking and summarizing the daily trading process of Funds Pay-in

and Pay-out under the Settlement process of BSE and NSE Cash and
F&O operations with CSE.
 Tracking the total funds pay-in and pay-out from the other settlement
reports in Market operations; such as the Levies report, Valan report.
 Generating bank files of funds pay in and pay out from the company portal
of BSE Cash, NSE cash and NSE F&O (future and options).
 Making online payment of NEFT and RTGS funds for clearing of funds
pay out, funds transfer made from HDFC bank to Axis bank on each
trading day.
 Uploading the online pay out, transfer made from HDFC bank to Axis
bank in the company portal on each trading day.
 Making voucher entry of the funds transfer, payment and adjustments
 Preparing Reconciliation statements of all the funds pay-in and pay-out

under Settlement process at the end of each trading day as per T+2 basis.
 Preparing Valan Report at the end of each trading day based on the data
obtained from the Exchange.
 Matching the net figure of total pay-in and pay-out in the Valan report with
the Bank statements after making all adjustments of expenses, charges and
inflows
 Preparing Position statements on each trading day.
 Tracking of shortfall of funds from the client margin report on each

trading day.
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Hence, these are the main activities that are dealt by the members of the Market Operations
Department.
These activities in the Market Operations department are conducted by me sincerely as an intern.
2. EXECUTIVE SUMMARY
This report provides an analysis and evaluation of the current scenario and future prospects of
Market operations department in Calcutta Stock Exchange.
I. SIP PROPOSED
Study of Exchange Fund Pay-in and Pay-out process.
II. DESCRIPTION OF SIP

Industry Name: The Calcutta Stock Exchange Ltd. (CSE)
Industry Type: Securities or Stock Market
Industry Address:7, Lyons Range, Kolkata - 700001
Background of Industry
The Calcutta Stock Exchange Ltd. (CSE)is one of the oldest stock exchanges in the country.
Under the initiative of SEBI it became a body corporate in the year 2007.
The concept of this exchange was laid down years back in 1830. In 1850, when the Companies
Act was introduced in India by the British, the concept of Limited liability was introduced and
the investments in shares were taking place.
The Calcutta Stock Exchange is a full service stock exchange providing fully electronic trading,
clearing and settlement in equities. It is having extensive surveillance capabilities.
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The Calcutta Stock Exchange followed the familiar outcry system for stock trading until 1997,
when it was replaced by an electronic or e - trading system known as C-STAR (CSE Screen
Based Trading and Reporting).
Market Operations (M.O.P.) Departmentin CSE is amongst the most crucial in the Exchange.
The activities in this department involves:-
particular day.
Pay-out of securities – Transfer of stocks by broker from his pool account to the client's De-mat
account.
particular day.
NSE and BSE.
securities.
III. OBJECTIVE OF SIP

• To provide a detailed description of the Funds Pay-in and Pay-out in the Exchange
departments of Cash and fund operations.
• To provide an overview of the daily trading process of the Exchange funds in the
Pay-in and Pay-out basis under the Settlement process of BSE and NSE cash and
fund operations departments with CSE.
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• To make a comparative analysis of the performance of Exchange funds pay in and
pay out of BSE and NSE with CSE.
• To make an overall comparative analysis of trading of BSE and NSE with CSE.
IV. METHODOLOGY
Secondary Research – Data as provided by the Exchange and comparison of this with the SEBI
regulations.
The Research Methodology is based on the secondary data as provided by the Exchange ---
Funds Pay-in and Pay-out in the Settlement process.
The daily trading process of the Exchange funds performed in the Pay-in and Pay-out basis under
the Settlement process of BSE and NSE cash and fund operations departments with CSE by
following the SEBI rules and guidelines.
V. SCHEDULE
20th Feb 2018 – 1st June 2018
VI. RECOMMENDATION
 The Calcutta stock exchange market’s infrastructure has to be improved as it hinders the
efficient flowof information and effective corporate governance.
 The court system and legalmechanism should be enhanced to better protect small
shareholders’ rights and their capacity to monitor the corporate activities.
 Trading technology has to be transparent so that the investors gravitate to the Calcutta
Stock market exchanges as a result of better rates and higher liquidity.
VII. LIMITATION OF THE STUDY

 The report is limited to the secondary data and information provided by the company.
 Scope of the work is so huge that 15 weeks is really inadequate to do full justice to the
project.
FACULTY GUIDE NAME: Prof. Sujoy Dhar

COMPANY GUIDE NAME: AsisMaity(M.O.P. Manager)
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3.INTRODUCTION
7, LYONS RANGE, KOLKATA- 700 001
BACKGROUND OF COMPANY
The Calcutta Stock Exchange Ltd. (CSE) is one of the oldest stock exchanges in the country.
Under the initiative of SEBI it became a body corporate in the year 2007.
The concept of this exchange was laid down years back in 1830. In 1850, when the Companies
Act was introduced in India by the British, the concept of Limited liability was introduced and
the investments in shares were taking place.
In May 1908, an association was formed under the name and style of Calcutta Stock Exchange
Association at 2, China Bazaar Street.
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On June 7 ,1923 the Association was registered as a limited liability concern, with an authorized
capital of Rs. 3 lakhs divided into 300 shares of Rs.1000/- each.
The Calcutta Stock Exchange is a full service stock exchange providing fully electronic trading,
clearing and settlement in equities. It is having extensive surveillance capabilities.
The Calcutta Stock Exchange followed the familiar outcry system for stock trading until 1997,
when it was replaced by an electronic or e - trading system known as C-STAR (CSE Screen
Based Trading and Reporting).
The Bombay Stock Exchange (BSE) has made a strategic investment in Calcutta Stock
Exchange, acquiring 5% of its shares.
Besides being a 100 year old exchange which has witnessed many milestones in the growth of
capital market in India, today, it offers a wide variety of products under the same roof.
Some of the key offerings of the exchange are:
 Access to three trading platforms NSE & BSE with CSE (C-STAR) - Cash & *F&O
Segment. (Competitive & Attractive)
 Accounts services
 Market operations
 Margin and Settlement departmental services
 Attractive turnover charges
 DP services CDSL & NSDL
 Listing facility at NSE & BSE for companies listed with the exchange
 Pan Card service
However several problems are now being associated with the exchange:-
 SEBI has declared CSE as a non-operating Exchange, so trading facility is not available to
the investors.
 There is a major problem of communication and interpersonal relation within departments.
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 There is no dedicated customer service department for CSE members. Being a service
industry it’s mandatory for an organization to have a dedicated customer service department.
At present business development team/department is taking care of customer issues.
 New members are reluctant to maintain a deposit of Rs.11 lakhs with CSE as they can trade
through the brokers without maintaining much deposit on the basis of commission sharing
basis.
The Calcutta Stock Exchange organizes a training course since 1982 for imparting training to
persons who are interested in taking up stock-broking as a career.
The training program is now spread over a period of nine months.
The program is free of any tuition fee. At the end of each term, an examination is held and a
certificate is given to the successful candidates.
REGULATORY FRAMEWORK
The four main legislations governing the securities market are
(a)The SEBI Act, 1992

(b) The Companies Act, 1956
(c) The Securities Contracts (Regulation) Act, 1956
(d) The Depositories Act, 1996.
A briefabout these legislations are as given below:
(a.) SEBI Act, 1992
The SEBI Act, 1992 was enacted to empower the SEBI withstatutory powers for:
(a) Protecting the interests of investors in securities,
(b) Promoting the development of the securities market, and
(c) Regulating thesecurities market.
Its regulatory jurisdiction extends over corporates in the issuing capital and all intermediaries
and persons associated with securitiesmarket.
It can conduct enquiries, audits and inspection of all concernedparticipants and adjudicate
offences under this Act.
It has powers to registerand regulate all the market intermediaries. Further it can also penalize
them incase of violations of the provisions of the Act, Rules and Regulations.
The SEBI has full autonomy and authority to regulate and develop an orderly
securities market.
(b.)Securities Contracts (Regulation) Act, 1956
It provides for direct and indirect control of virtually all aspects of the securities trading
including the running of stock exchanges with an aim toprevent undesirable transactions in
securities.
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It gives the Central Government regulatory jurisdiction over:
(a) Stock exchanges through a process ofrecognition and continued supervision,
(b) Contracts in securities
(c) Listing of securities on stock exchanges.
As a condition of recognition, a stockexchange complies with the requirements prescribed by the

CentralGovernment. The stock exchanges frame their own listing regulations in
consonance with the minimum listing criteria set out in the Rules.
(c.) Depositories Act, 1996
The Depositories Act, 1996 provides for the establishment of depositories for securities to ensure
transferability of securities with speed,accuracy and security. For this, these provisions have been
made:
(a) Making securities of public limited companies freely transferable subject to certain
exceptions;
(b) Dematerializing the securities in the depository mode; and
(c)Providing for maintenance of ownership records in a book entry form. Inorder to streamline
the settlement process, the Act envisages transfer ofownership of securities electronically by
book entry without moving thesecurities from persons to persons.
The Act makes the securities of all public limited companies freely transferable, restricting the
company’s right to usediscretion in effecting the transfer of securities. The transfer deed and
otherprocedural requirements under the Companies Act have been dispensed with.
(d.) Companies Act, 1956
It deals with issue, allotment and transfer of securities and various aspects relating to company
management.
It provides for standards of disclosure in the public issues, particularly in the fields of company
management and projects, information about other listed companies under thesamemanagement,
and management perception of risk factors.
It alsoregulates underwriting, the use of premium and discounts on issues, rights andbonus
issues, payment of interest and dividends, supply of annual report andother information.
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4. MARKET OPERATIONS (M.O.P.) OF CSE
The Calcutta Stock Exchange Ltd. (CSE) is one of the oldest stock exchanges in the country.
Under the initiative of SEBI it became a body corporate in the year 2007. Among the prominent
shareholders of the Exchange are well known corporate houses like West Bengal Industrial
Development Corporation, Hindustan National Glass, Emami, Patton Industries etc. and Bombay
Stock Exchange ltd. Besides being a 100 year old exchange which has witnessed many
milestones in the growth of capital market in India, today it offers a wide variety of products
under the same roof.
Some of the key offering of the exchange are:
MARKET OPERATIONS (M.O.P) DEPARTMENTin CSE is amongst the most

crucial in the Exchange. The activities in this department involves:-
particular day.
Pay-out of securities – Transfer of stocks by broker from his pool account to the client's De-mat
account.
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particular day.
NSE and BSE.
securities.
The core processes involved in clearing and settlement include:
a. Trade Recording – The key details about the trades are recorded to provide basis for
settlement.These details are automatically recorded in the electronic trading system of
theexchanges.
b. Trade Confirmation – The parties to a trade agree upon the terms of trade like security,
quantity, price, and settlement date. The electronic system automatically generates confirmation
by direct participants.
c.Pay-in of funds and securities – This requires members to bring in their funds/ securities to the
clearing corporation. The clearing members make the securities available in designated accounts
with the two depositories (Clearing member pool account in the case of NSDL and designated
settlement accounts in case of CDSL). The depositories move the securities available in the pool
accounts to the funds available in the designated accounts with clearing banks. The clearing
corporation sends electronic instructions to the clearing banks to debit designated clearing
member's accounts to the extent of payment obligation. The banks process these instructions,
debit accounts of clearing pool account of the clearing corporation. Likewise Clearing members
with funds obligations make clearing members and credit accounts of the clearing corporation.
d.Pay-out of funds and securities – After processing for shortages of funds/securities and
arranging for movement of funds from surplus banks to deficit banks through RBI clearing, the
clearing corporation sends electronic instructions to the depositories/clearing banks to release
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pay-out of securities/funds. The depositories and clearing banks debit accounts of the Clearing
Corporation and credit accounts of clearing members.
PROCESS OF PAY-IN AND PAY-OUT OF FUNDS UNDER THE

SETTLEMENT PROCESS
As per the SEBI circulars, Pay-in is done under 10:30 am.
Pay-out is done under 2:00 pm.
Both NSE and BSE have got their different A/C codes for the clients in exchanges.
CSE do not have their own exchange system. Previously, they had in 2012. But after that they
follow the Exchange system of NSE and BSE.
Both NSE and BSE gives settlement dates of the client to CSE on monthly basis where CSE
employees go to the website and download the file previously.
They have their own settlement dates of client. They generate the settlement dates previously.
This system was till 2012.
CSE only debit the amount from the Settlement account of the clients.
BSE OPERATIONS
BSE follows the Net balance system of Pay-in.
Say, Pay-in = Rs.44087 (Cr.)
Pay-out = Rs.13224 (Dr.)
Net Balance = Rs. (44087 – 13224). The Net balance should be Pay-in under BSE.
NSE OPERATIONS
NSE do not follow the Net balance system of Pay-in
Say, Pay-in = Rs. 44087 (Cr.)
Pay-out = Rs. 13224 (Dr.)
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Therefore, under NSE, Pay-in is Rs.44087 and Pay-out is Rs.13224.
Both NSE and BSE have their cash and future operations segments for operating their A/Cs.
Previously; NSE and BSE ordered account of 8 – 10 banks.
But, nowadays they operate the A/C's of only 2 banks i.e. Axis bank and HDFC bank.
NSE and BSE operate their A/Cs of Axis and HDFC banks through cash and FO segment.
Settlement cycle is T+2 rolling settlement basis. This is w.e.f. 1.4.03.
The exchanges have to ensure that the pay out of funds and securities to the clients is done by
broker within 24 hrs. of the pay-out.
The exchanges will have to issue press release just after pay-out.
T2T segment on BSE is segment in which no intra-day trading is allowed for shares falling in
that segment, as each trade results in delivery.
Transactions placed in this segment have to be settled on gross basis by taking or giving delivery
even if you have bought and sold the shares during the same settlement cycle.
If you buy shares – You must pay money and take delivery.
If you sell shares – You must give delivery of shares and then will get money.
If you buy and sell today and don't have delivery, then the sell position will go in to auction and
you will have to pay penalty.
Hence, trading system under Exchange is done on T+2day basis. Where T = Trade day.
The Trade is settled after 2 days.Funds pay-in and pay-out settled on T+2day basis.
Currently the Calcutta Stock Exchange is trading with BSE and NSE under the
departments as follows:
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BSE Cash Segment
NSE Cash Segment
NSE F&O Segment (Future and options)
The Cash segments of BSE and NSE follows the T+2 rolling settlement system for
trade.This means that the trade under the Cash segments of BSE and NSE is settled in T+2
day basis.
The Funds pay-in and pay-out is settled in T+2 day basis.
The T+3 system of funds pay-in and pay-out under the Cash segment of BSE and NSE is
followed only during auctions and so-on.
The Future and Option segment of NSE and BSE follows the T+1 system only.
The trading under the F&O segment is not done under T+2 day basis.
The Funds pay-in and pay-out is not settled in T+2day basis under F&O segment.
ONLINE PAYMENT OF FUNDS / SECURITIES
The payment of funds and securities made from HDFC bank to Axis bank under BSE cash, NSE
cash, NSE F&O is known as the Pay out of funds or securities to Axis Bank.
This payment of funds for clearing of funds pay out and funds transfer is made online in the
company portal on each trading day.
Online payment of NEFT and RTGS funds for clearing of funds pay out, funds transfer is made
from HDFC bank to Axis bank on each trading day.
Funds or securities can be both NEFT and RTGS form.
If the amount of fund or security is less than Rs.2 lakhs, then the fund is NEFT fund.
If the amount of fund or security is more than Rs.2 lakhs, then the fund is RTGS fund.
Then, the following work done is:
 Uploading the online pay out, transfer made from HDFC bank to Axis bank in the
company portal on each trading day.
ENTITIES INVOLVED IN CLEARING AND SETTLEMENT PROCESS

FOR FUNDS PAY-IN AND PAY-OUT
Several entities, like the clearing corporation, clearing members, custodians, clearing
banks, depositories are involved in the process of clearing. The role of each of these entities
is explained below:
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a. Clearing Corporation: The clearing corporation is responsible for post-trade activities
such as risk management and clearing and settlement of trades executed on a stock
exchange.The first clearing corporation to be established in the country and also the first
clearing corporation in the country to introduce settlement guarantee is the National
Securities Clearing Corporation Ltd. (NSCCL), a wholly owned subsidiary of NSE.
NSCCL was incorporated in August 1995. It was set up with the objectives of bringing
and sustaining confidence in clearing and settlement of securities; promoting and
maintaining short and consistent settlement cycles; providing counter-party risk guarantee
and operating a tight risk containment system.
b. Clearing Members: Clearing Members are responsible for settling their obligations as
determined by the clearing corporation. They do so by making available funds and/or
securities in the designated accounts with clearing bank/depositories on the date of
settlement.
c. Custodians: Custodians are clearing members but not trading members. They settle
trades on behalf of trading members, when a particular trade is assigned to them for
settlement. The custodian is required to confirm whether he is going to settle that trade or
not. If he confirms to settle that trade, then clearing corporation assigns that particular
obligation to him. As on date, there are 13 custodians empaneled with NSCCL. They are
Deutsche Bank A.G., HDFC Bank Ltd., Hong kong Shanghai Banking Corporation Ltd.,
Infrastructure leasing and Financial Services Ltd., ICICI Bank Ltd., Standard Chartered
Bank Ltd., Stock Holding Corporation of India Ltd., Axis Bank Ltd., DBS bank Ltd., JP
Morgan Chase Bank N.A., Kotak Mahindra Bank Ltd. State Bank of India and Citibank
N.A and Orbis Financial Corporation Ltd.
d. Clearing Banks: Clearing banks are a key link between the clearing members and
Clearing Corporation to effect settlement of funds. Every clearing member is required to
open a dedicated clearing account with one of the designated clearing banks. Based on
the clearing member’s obligation as determined through clearing, the clearing member
makes funds available in the clearing account for the pay-in and receives funds in case of
a pay-out. There are 13 clearing banks of NSE, viz., Axis Bank Ltd, Bank of India Ltd.,
Canara Bank Ltd., Citibank N.A, HSBC Ltd., HDFC Bank Ltd., ICICI Bank Ltd IDBI
Bank Ltd., Kotak Mahindra Bank, Standard Chartered Bank, State Bank of India and
Union Bank of India.
e. Depositories: Depository holds securities in dematerialized form for the investors in their
beneficiary accounts. Each clearing member is required to maintain a clearing pool
account with the depositories. He is required to make available the required securities in
the designated account on settlement day. The depository runs an electronic file to
transfer the securities from accounts of the custodians/clearing member to that of NSCCL
and vise-versa as per the schedule of allocation of securities. The two depositories in
India are the National Securities Depository Ltd (NSDL) and Central Depository Services
(India) Ltd (CDSL).
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f. Professional Clearing Member: NSCCL admits special category of members known as
professional clearing members (PCMs). PCMs may clear and settle trades executed for
their clients (individuals, institutions etc.). In such cases, the functions and
responsibilities of the PCM are similar to that of the custodians. PCMs also undertake
clearing and settlement responsibilities of the trading members. The PCM in this case has
no trading rights but has clearing rights i.e. he clears the trades of his associate trading
members and institutional clients.
5. SURVEY OF EXISTING LITERATURE
L.C.Gupta (1992) revealed the findings of his study that there is existence of wild speculation in
the Calcutta stock market. The over speculative character of the Calcutta stock market is
reflected in extremely high concentration of the market activity in a handful of shares to the
neglect of the remaining shares and absolutely high trading velocities of the speculative counters.
He opined that, short- term speculation, if excessive, could lead to "artificial price". An artificial
price is one which is not justified by prospective earnings, dividends, financial strength and
assets or which is brought about by speculators through rumours, manipulations, etc.
Heconcluded that such artificial prices are bound to crash sometime or other as history has
repeated and proved.
Nabhi Kumar Jain (1992) specified certain tips for buying shares for holding and also for
selling shares. He advised the investors to buy shares of a growing company of a growing
industry. Buy shares by diversifying in a number of growth companies operating in a different
but equally fast growing sector of the economy. He suggested selling the shares the moment
company has or almost reached the peak of its growth. Also, sell the shares the moment you
realise you have made a mistake in the initial selection of the shares. The only option to decide
when to buy and sell high priced shares is to identify the individual merit or demerit of each of
the shares in the portfolio and arrive at a decision.
Pyare Lal Singh (1993) in the study titled, Indian Capital Market - A Functional Analysis,
depicts the primary market as a perennial source of supply of funds. It mobilises the savings
from the different sectors of the economy like households, public and private corporate sectors.
The number of investors increased from 20 lakhs in 1980 to 150 lakhs in 1990 (7. 5 times). In
financing of the project costs of the companies with different sources of financing, the
contribution of the securities has risen from 35.01% in 1981 to 52.94% in 1989. In the total
volume of the securities issued, the contribution of debentures / bonds in recent years has
increased significantly from 16. 21% to 30.14%.
Sunil Damodar (1993) evaluated the 'Derivatives' especially the 'futures' as a tool for short-term
risk control. He opined that derivatives have become an indispensable tool for finance managers
whose prime objective is to manage or reduce the risk inherent in their portfolios. He disclosed
that the over-riding feature of 'financial futures' in risk management is that these instruments tend
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to be most valuable when risk control is needed for a short- term, i.e., for a year or less. They
tend to be cheapest and easily available for protecting against or benefiting from short term price.
Their low execution costs also make them very suitable for frequent and short term trading to
manage risk, more effectively.
R.Venkataramani (l994) disclosed the uses and dangers of derivatives. The derivative products
can lead us to a dangerous position if its full implications are not clearly understood. Being off
balance sheet in nature, more and more derivative products are traded than the cash market
products and they suffer heavily due to their sensitive nature. He brought to the notice of the
investors the 'Over the counter product' (OTC) which are traded across the counters of a bank.
OTC products (e.g. Options and futures) are tailor made for the particular need of a customer and
serve as a perfect hedge. He emphasized the use of futures as an instrument of hedge, for it is of
low cost.
Debjit Chakraborty (1997) in his study attempts to establish a relationship between major
economic indicators and stock market behaviour. It also analyses the stock market reactions to
changes in the economic climate. The factors considered are inflation, money supply, and growth
in GDP, fiscal deficit and credit deposit ratio. To find the trend in the stock markets, the BSE
National Index of Equity Prices (Natex) which comprises 100 companies was taken as the index.
The study shows that stock market movements are largely influenced by, broad money supply,
inflation, C/D ratio and fiscal deficit apart from political stability.
Avijit Banerjee (1998) reviewed Fundamental Analysis and Technical Analysis to analyse the
worthiness of the individual securities needed to be acquired for portfolio construction. The
Fundamental Analysis aims to compare the Intrinsic Value (I.V.) with the prevailing market price
(M.P) and to take decisions whether to buy, sell or hold the investments. The fundamentals of the
economy, industry and company determine the value of a security. If the 1.V is greater than the
M.P., the stock is under priced and should be purchased. He observed that the Fundamental
Analysis could never forecast the M.P. of a stock at any particular point of time. Technical
Analysis removes this weakness. Technical Analysis detects the most appropriate time to buy or
sell the stock. It aims to avoid the pitfalls of wrong timing in the investment decisions. He also
stated that the modern portfolio literature suggests 'beta' value p as the most acceptable measure
of risk of scrip. The securities having low P should be selected for constructing a portfolio in
order to minimise the risks.
Madhusudan (1998) found that BSE sensitivity and national indices did not follow random
walk by using correlation analysis on monthly stock returns data over the period January 1981 to
December 1992.
Arun Jethmalani (1999) reviewed the existence and measurement of risk involved in investing
in corporate securities of shares and debentures. He commended that risk is usually determined,
based on the likely variance of returns. It is more difficult to compare 80 risks within the same
25
class of investments. He is of the opinion that the investors accept the risk measurement made by
the credit rating agencies, but it was questioned after the Asian crisis. Historically, stocks have
been considered the most risky of financial instruments. He revealed that the stocks have always
outperformed bonds over the long term. He also commented on the 'diversification theory'
concluding that holding a small number of non-correlated stocks can provide adequate risk
reduction. A debt-oriented portfolio may reduce short term uncertainty, but will definitely reduce
long-term returns. He argued that the 'safe debt related investments' would never make an
investor rich. He also revealed that too many diversifications tend to reduce the chances of big
gains, while doing little to reduce risk. Equity investing is risky, if the money will be needed a
few months down the line. He concluded his article by commenting that risk is not measurable or
quantifiable. But risk is calculated on the basis of historic volatility. Returns are proportional to
the risks, and investments should be based on the investors' ability to bear the risks, he advised.
Bhanu Pant and Dr. T.R.Bishnoy (2001) analyzed the behaviour of the daily and weekly
returns of five Indian stock market indices for random walk during April 1996 to June 2001.They
found that Indian Stock Market Indices did not follow random walk.
Juhi Ahuja (2012) presents a review of Indian Capital Market & its structure. In last decade or
so, it has been observed that there has been a paradigm shift in Indian capital market. The
application of many reforms & developments in Indian capital market has made the Indian
capital market comparable with the international capital markets. Now, the market features a
developed regulatory mechanism and a modern market infrastructure with growing market
capitalization, market liquidity, and mobilization of resources. The emergence of Private
Corporate Debt market is also a good innovation replacing the banking mode of corporate
finance. However, the market has witnessed its worst time with the recent global financial crisis
that originated from the US sub-prime mortgage market and spread over to the entire world as a
contagion. The capital market of India delivered a sluggish performance.
6. OBJECTIVE OF STUDY
• To provide a detailed description of the Funds Pay-in and Pay-out in the Exchange
departments of Cash and fund operations in Calcutta Stock Exchange (CSE)
• To provide an overview of the daily trading process of the Exchange funds in the
Pay-in and Pay-out basis under the Settlement process of BSE and NSE cash and
fund operations departments with CSE.
• To make a comparative analysis of the performance of Exchange funds pay in and
pay out of BSE and NSE with CSE.
26
• To make an overall comparative analysis of trading of BSE and NSE with CSE.
• To study the service quality dimensions provided by theshare brokers and the
perception of investors on the servicequality dimensions.
 To examine the relationship between the investment behaviour and the influence
of investment behaviour on monthly transactions of investors.
 To study the strengths, weaknesses, opportunities andThreats and so as to identify
the strategies for better servicesprovided by the share brokers.
 To Study the various aspect of Indian Stock Market in detail.
 To know the future prospects of Calcutta stock market.
 To help the investors (current and potential) to understand the impact of important
happenings on the Calcutta Stock exchange.
7. RESEARCH DESIGN
RESEARCH METHODOLOGY
Secondary Research – Data as provided by the Exchange and comparison of this with the SEBI
regulations.
The Research Methodology is based on the secondary data as provided by the Exchange ---
Funds Pay-in and Pay-out in the Settlement process.
The daily trading process of the Exchange funds performed in the Pay-in and Pay-out basis under
the Settlement process of BSE and NSE cash and fund operations departments with CSE
byfollowing the SEBI rules and guidelines.
SOURCE OF DATA
The data used for analysis and study of this report is Secondary Data.
Secondary Research – Data as provided by the Exchange and comparison of this with theSEBI
regulations.
The Research Methodology is based on the secondary data as provided by the Exchange ---Funds
Pay-in and Pay-out in the Settlement process.
27
TIME PERIOD OF STUDY
20th Feb 2018 – 1st June 2018
TOOLS AND TECHNIQUES
The main tools used for study and analysis of the report are as follows:
 Statement of bank files of funds pay in and pay out under BSE cash , NSE cash,
NSE F&O.
 Clearing and settlement process for transaction of funds and securities on each
trading day.
 The T+2 Rolling Settlement Cycle under which regular trading of funds and
securities pay in, pay out, transfer is done.
 The Valan report or Valan summary showing the computation and final
estimation of funds pay in and pay out on each trading day after making necessary
adjustments with excess pay out, other charges, expenses, incomes, and pay in.
 Settlement Calendar showing the trade start date, trade end date, Settlement date
based on the Settlement numbers of BSE and NSE on each trading day.
8. WORK DONE IN THE ORGANIZATION
These are the tasks which are handled by me as an intern as per the SIP schedule.
The work performed by me as per the stipulated SIP schedule is given below in a tabular form:
Weeks Tasks
1st week – 4th week  Study of the basics and overview of NSE and BSE.
28
 Study the process of how CSE works with NSE and BSE
 Study of the operations made under the margin and settlement departments of
CSE.
 Study of how the transactions are made and how the clients and accounts are
handled under the margin and settlement departments of CSE.
 Study of the process of funds pay-in and pay-out in the Exchange departments
of Cash and Fund operations.
5th week - 7th week  Tracking and summarizing the daily trading process of Funds Pay-in and Pay-
out under the settlement process of BSE and NSE Cash and F&O operations
with CSE.
 Tracking the total funds pay-in and pay-out from the other settlement reports in
Market operations; such as the Levies report, Valan report.
 Generating bank files of funds pay in and pay out from the company portal of
BSE Cash, NSE cash and NSE F&O (future and options).
 Preparing Position statements on each trading day on regular basis.
 Tracking the shortfall balance of funds from the Management reports and the
Client margin report on each trading day.
 Matching the net figure of total pay-in and pay-out in the Valan report with the
Bank statements after making all adjustments of expenses, charges and inflows.
8th week - 12th week  Study of Exchange Fund pay-in and pay-out reports and margin reports.
 Preparing Reconciliation statements of all the funds pay-in and pay-out under
Settlement process at the end of each trading day as per T+2 basis.
 Making voucher entry of the funds transfer, payment and adjustments.
 Preparing Valan Report at the end of each trading day based on the data
obtained from the Exchange.
29
13th week – 15thweek  Learning the method of making online payment for clearing of fund transfer,
fund pay out made from HDFC bank to Axis bank on each trading day.
 Got to know in detail about Direct online payment and payment done by bank
file attachment. Got to learn about NEFT and RTGS payment. Got to know the
method of making online payment for clearing \of fund transfer, fund pay out
made from HDFC bank to Axis bank on each trading day.
 Making online payment of NEFT and RTGS funds for clearing of fund transfer,
fund pay out made from HDFC bank to Axis bank on each trading day.
 Learning the method of uploading the online pay out , transfer made from
HDFC bank to Axis bank in the company portal on each trading day.
 Uploading the online pay out , transfer made from HDFC bank to Axis bank in
the company portal on each trading day.
9. ANALYSIS OF INDUSTRY
Industry analysis is an assessment tool which is designed to provide the business with the idea
regarding the complexity of a particular industry. It involves reviewing economic, market and
political scenario which influences the development of an industry.
Economic overview involves examination of the industry’s business cycle while political
overview helps in understanding the amount of government regulation and taxation present in the
business industry.
It is very important to understand what leads to sustainable value creation in relation to a

company. One of the important factor of sustainable value creation is the industry a company
operates in.
For instance, you would be more interested investing in a pharma or a FMCG company and you
might not be willing to invest in a company in a sugar industry. Hence, the best way to analyse
whether a company can generate value sustainably over a longer term, the industry analysisis
the best starting point.
30
SWOT ANALYSIS OF INDUSTRY
A. Strength:
1. The Calcutta Stock Exchange is a full service stock exchange providing fully
electronic trading, clearing and settlement in equities. It is having extensive surveillance
capabilities.
2. SEBI a regulatory body of Indian stock market protects the interest of the investors.
Thus, the interest of the investors in the Calcutta Stock Exchange is protected as per
implementation of the SEBI regulations.
3. Bombay Stock Exchange (BSE) has made a strategic investment in Calcutta Stock
Exchange, acquiring 5% of its shares.
4. Presence of large number of securities which provides medium for investment.
5. Presence of large number of Brokers who plays a role of facilitator for investment.
6. The Calcutta Stock Exchange market has itsability to provide high return.
7. Besides being a 100 year old exchange which has witnessed many milestones in the
growth of capital market in India, today, it offers a wide variety of products under the
same roof.
8. Some of the key offerings of the exchange are:
31
B. Weakness:
 The weak point of Calcutta stock market (CSE) is its volatility i.e. High risk.
 SEBI has declared CSE as a non-operating Exchange, so trading facility is not available
to the investors.
 There is a major problem of communication and interpersonal relation within
departments.
 There is no dedicated customer service department for CSE members. Being a service
industry it’s mandatory for an organization to have a dedicated customer service
department. At present business development team/department is taking care of customer
issues.
 New members are reluctant to maintain a deposit of Rs.11 lakhs with CSE as they can
trade through the brokers without maintaining much deposit on the basis of commission
sharing basis.
C. Opportunity:
1. Calcutta Stock market provides an opportunity to money lender and money seeker to
invest and use money for their plan.
2. It provides an opportunity to the investor to be the owner of the company and

contribute in the business decision of the company.
3. Calcutta Stock market is a kind of indicator of the economic growth of the country
where it provides an opportunity to gain according to the inflation of the country or more
than that.
D. Threats:
 If a member fails to meet the obligation of funds or securities pay in within the stipulated
period, then the members trading work station will be deactivated immediately and the
fine will be imposed against the default amount.
 There are many competitors of stock market such as post office savings, public provident
fund, company fixed deposits, fixed deposits with bank etc. which provides fixed and
assured returns.
 If the members are unable to meet the obligations of payment of fund in the stipulated
period, the exchange deactivates their trading terminals. This can cause a de motivation
and threat for the members trading with CSE and can cause in reduction of trading
members.
 The SEBI will have to ensure that the regional bourses do not die as a result of the
emergence of the NSE and the BSE but are given the right ambience to chart out a
survival strategy for them.
 Trading technology is getting more complex and investors are tending to gravitate to the
larger exchanges as a result of better rates and higher liquidity.
32
10. ANALYSIS OF PRIMARY AND SECONDARY DATA USED FOR
STUDY
The data used for study is Secondary data provided by the Exchange.
GRAPHICAL REPRESENTATION SHOWING THECLEARING &

SETTLEMENT PROCESS
The clearing process involves determination of what counter-parties owe, and which counter-
parties are due to receive on the settlement date, thereafter the obligations are discharged by
settlement. The clearing and settlement process comprises of three main activities- clearing,
settlement and risk management.
The clearing and settlement process for transaction in securities on NSE is presented in the Chart
Below:
1. Trade details from Exchange to NSCCL (real-time and end of day trade file).
33
2. NSCCL notifies the consummated trade details to clearing members/custodians who affirm.
Based on the affirmation, NSCCL applies multilateral netting and determines obligations.
3. Download of obligation and pay-in advice of funds/securities.
4. Instructions to clearing banks to make funds available by pay-in time.
5. Instructions to depositories to make securities available by pay-in-time.
6. Pay-in of securities (NSCCL advises depository to debit pool account of custodians/clearing

members and credit its account and depository does it)
7. Pay-in of funds (NSCCL advises Clearing Banks to debit account of custodians/CMs and
credit its account and clearing bank does it)
8. Pay-out of securities (NSCCL advises depository to credit pool account of custodians/CMs

and debit its account and depository does it)
9. Pay-out of funds (NSCCL advises Clearing Banks to credit account of custodians/CMs and
debit its account and clearing bank does it)
10. Depository informs custodians/CMs through DPs.
11. Clearing Banks inform custodians/CMs.
VALAN REPORT
The Valan report is a secondary data and is used for analysis of how the computation of
funds and securities pay in and pay out is done on each trading day.
This is a statement given below showing the Valan summary or Valan report of BSE Capital for
11th May,2018.
Pay in done in 11.5.18
Pay out done in 11.5.18
Settlement number – 2018029
TABLE 1
The Calcutta Stock Exchange Limited - BSE - CAPITAL
Valan Summary for Settlement : 2018029 10/5/2018

Exchange : BSE / Segment : CAPITAL 1
34
Pay-In : 5/11/2018 / Pay-Out : 5/11/2018 11:59:00
PM
A/c code A/c Name Debit Credit
100 ROUNDING OFF 0 0
61310 DELIVERY CHARGES 0 0
10,404,482.0
99885 CLEARING HOUSE 0
0
99970 SEBI TURNOVER TAX 0 64.32
99971 TURNOVER TAX 0 21,978.12
99972 STT CHARGES 0 27,007.00
99973 STAMP CHARGES 0 0
99974 OTHER CHARGES 0 0
99990 BROKERAGE REALISED 0 0
CLCHRG CLEARING CHARGES 0 40.16
M0076 SIDDHARTHA AND CO. 258,689.14 0
SIKARIA SHARE & STOCK BROKING SERVICES PVT.
M0152 128,353.75 0
LTD
M0164 VPT SECURITIES LTD 51,880.92 0
M0196 ANC SECURITIES LTD. 0 169,089.06
M0233 GOENKA SECURITIES PVT LTD 789,236.32 0
M0250 SAJJAN KUMAR SARAF 0 222,166.03
M0293 JALAN AND CO. 48,705.87 0
M0310 CHUNILAL T. MEHTA 0 2,787.09
M0390 TARUN SETHIA 495,188.17 0
M0441 K. P. C. SECURITIES PVT. LTD. 0 139,180.79
M0468 PARAKH SECURITIES PVT. LTD. 203,490.75 0
M0484 SURYA PRAKASH TOSNIWAL 246,750.63 0
M0505 PRABHAT KUMAR JHUNJHUNWALA 66,319.72 0
M0583 DAULAT SECURITIES LIMITED 0 14,278.21
M0587 INVESTECH SECURITIES PVT LTD 0 64,564.12
M0615 AV SHARES AND STOCK BROKING (P) LTD. 0 49,682.19
M0616 ASHOK KR. SOMANI 4,391.59 0
M0635 MANI INVEST BROKERS PVT LTD 0 61,884.29
M0758 S R STOCK BROKING PVT. LTD. 212,264.16 0
M0860 KAILASH AND CO 0 233,204.79
M0984 RITURAJ SHARES AND SECURITITES LTD. 145,340.68 0
M0994 SPARTEK FINANCIERS AND INVESTMENT PVT. LTD. 463,965.16 0
M1025 BHARTIA BROTHERS 8,048.45 0
M1026 SHRADDHA JHUNJHUNWALA 0 63,462.68
12,453,710.5
M1050 DREAMWAY SHARE AND STOCKS INDIA LTD. 0
9
M1065 BSAS SECURITIES LTD 0 44.59
35
WB_CGS
WB_CGST 0 1,981.64
T
WB_SGS
WB_SGST 0 1,981.64
T
13,527,107.3 13,527,107.3
Total
1 1
TABLE 2

Pay-In : 5/11/2018 / Pay-Out : 5/11/2018 11:59:00 PM
100 ROUNDING OFF 0.02 0
99885 CLEARING HOUSE 2,398.62 0
99971 TURNOVER TAX 0 333.72
99972 STT CHARGES 0 545
M0233 GOENKA SECURITIES PVT LTD 54,928.41 0
M0250 SAJJAN KUMAR SARAF 2,701.87 0
M0293 JALAN AND CO. 37,823.67 0
M0390 TARUN SETHIA 11,379.59 0
M0984 RITURAJ SHARES AND SECURITITES LTD. 0 111,275.28
M0994 SPARTEK FINANCIERS AND INVESTMENT PVT. LTD. 0 15,046.75
WB_CGST WB_CGST 0 30.07
WB_SGST WB_SGST 0 30.07
Total 127,262.07 127,262.07
The Valan summary or Valan report shows the

matching of total Pay-in and Pay-out figures
with the Bank statement.
36
Under table -3 the total pay-in and pay-out figures are matched and tallied after making
necessary adjustments of excess pay-in and pay-out and transfers.
The tables 1 and 2 shows the pay-in and pay-out figures of different members with CSE
and also various other charges.
In table 3, the total pay-in and pay-out figures are computed and tallied after making
necessary adjustments with excess pay-in and pay-out figures of different members with
CSE and other charges as shown in tables 1 and 2.
Then as the final pay-in and pay-out figures in table 3 is computed and tallied, these figures
are also matched with the bank statements after making necessary adjustments of excess
charges, expenses, taxes, transfers and incomes.
TABLE 3
Valan Summary for Settlement : 2018029

13,471,352.5
PAYIN------------> 3,118,464.84 PAYOUT-----------> 6
ROUNDING OFF 0.02 ROUNDING OFF 0
DELIVERY CHARGES 0 DELIVERY CHARGES 0
10406880.6
CLEARING HOUSE CLEARING HOUSE 0
2
SEBI TURNOVER TAX 0 SEBI TURNOVER TAX 65.14
TURNOVER TAX 0 TURNOVER TAX 22311.84
STT CHARGES 0 STT CHARGES 27552
STAMP CHARGES 0 STAMP CHARGES 0
OTHER CHARGES 0 OTHER CHARGES 0
BROKERAGE REALISED 0 BROKERAGE REALISED 0
CLEARING CHARGES 0 CLEARING CHARGES 40.52
WB_CGST 4,023.42
0
13,525,345.4
13,525,345.48 8
0.00
Reconcilation with Bank A/c
0990620005432
BANK STATEMENT Payin Payout

5/3/2018 3118464.84 13471352.56 5/3/2018
Payout
37
Transfer from BSE - Tr. to BSE
SD/ND TOC CSE
SEBI TOT
Service Tax
- -
This statement ofValan report above is one of the technique used for analysis of how the
computation of pay in and pay out is done on each trading day.
This statement above also shows how the final estimation of balance of funds and securities pay
in and pay out is made on each trading day after necessary adjustments with excess pay-in and
pay-out figures of different members with CSE and other charges, transfers,excess charges,
expenses and incomes.
CHART SHOWING SETTLEMENT CYCLE IN CM SEGMENT
Activity T+2 Rolling Settlement (From April1, 2003)
PARTICULARS TRADING DAYS
Trading T
Custodial Confirmation T+1
Delivery generation T+1
Securities/Funds Pay-in T+2
Securities/Funds Pay-out T+2
Valuation Debit T+2
Auction T+3
Bad Delivery Reporting T+4
38
Auction Pay-in/Pay-out T+5
Close Out T+5
Rectified Bad Delivery Pay-in/Pay-out T+6
Re-bad Delivery Reporting T+8
Close Out of Rebad Delivery T+9
T+1 means one working day after the trade day.
Other T+ terms have similar meanings
STATEMENT SHOWING COMPARATIVE STUDY OF FUNDS PAY-IN &

PAY-OUT OFCOMPANIES WORKING UNDER NSE AND BSE WITH
CSE:
This is another Secondary data or technique used for making a comparative

analysis of funds and securities trading of BSE and NSE.
This technique is used for making a comparison of trading of funds pay in and pay
out between BSE and NSE with CSE.
STATEMENT OF FUNDS PAY-IN & PAY-

OUT OF BSE CASH SEGMENT FOR
MONTH OF APRIL 2018
THE CALCUTTA STOCK EXCHANGE LTD

7, LYONS RANGE
KOLKATA 700001
STATEMENT OF FUNDS PAYIN FOR SETTLEMENT NO. 1819008
Member Sett.
Code Member Name Date Account No Amount Type Sett. No.
M0664 PLD SECURITIES PVT. LTD. 04/10/18 0000970620004195 474.41 D 1819006
39
M0070 KHANDELWAL BROS. 04/10/18 0000970620000220 437,208.31 D 1819008
M0076 SIDDHARTHA AND CO. 04/10/18 0000970620004827 134,266.39 D 1819008

SIKARIA SHARE & STOCK BROKING
M0152 SERVICES PVT. LTD 04/10/18 0000970620001467 33,816.52 D 1819008
M0164 VPT SECURITIES LTD 04/10/18 0000970620004247 53,670.77 D 1819008
M0196 ANC SECURITIES LTD 04/10/18 0000970620005145 2,914,846.7 D 1819008
M0250 SAJJAN KUMAR SARAF 04/10/18 0000970620004878 110,831.98 D 1819008
M0390 TARUN SETHIA 04/10/18 0000970620003202 182,340.40 D 1819008
M0468 PARAKH SECURITIES PVT. LTD. 04/10/18 0000970620004689 18,333.15 D 1819008
M0587 INVESTECH SECURITIES PVT LTD 04/10/18 0000970620004731 63,861.63 D 1819008
M0616 ASHOK KR. SOMANI 04/10/18 0000970620004323 1,766.72 D 1819008
M0635 MANI INVEST BROKERS PVT LTD 04/10/18 0000970620005025 441,896.77 D 1819008
M0979 ANIL AGARWAL 04/10/18 0000970620004333 41,468.34 D 1819008

M0984 RITURAJ SHARES AND SECURITIES LTD. 04/10/18 0000970620003877 160,523.49 D 1819008
M1026 S JHUNJHUNWALA & CO 04/10/18 0000970620004775 315,617.84 D 1819008
M1050 DREAMWAY SHARE AND STOCKS INDIA LTD. 04/10/18 0000970620005128 573,494.87 D 1819008
M1058 ACCRETION SECURITIES PVT LTD 04/10/18 0000970620005248 365,375.50 D 1819008
M1065 BSAS SECURITIES LTD. 04/10/18 0000970620005491 2,193.46 D 1819008
M1066 SARAF CAPITAL 04/10/18 0000970620005602 5,149.28 D 1819008
5,857,136

7, LYONS RANGE
KOLKATA 700001
STATEMENT OF FUNDS PAYOUT FOR SETTLEMENT NO. 1819008
Member Sett. Sett.
Code Member Name Date Account No Amount Type No.
M0233 GOENKA SECURITIES PVT LTD 04/10/18 0000970620005447 986.5 D 1819008
M0293 JALAN AND CO. 04/10/18 0000970620003850 709,002.10 D 1819008
M0310 CHUNILAL T. MEHTA 04/10/18 0000970620004144 57,181.59 D 1819008
M0484 SURYA PRAKASH TOSNIWAL 04/10/18 0000970620004559 620,798.73 D 1819008
M0505 PRABHAT KUMAR JHUNJHUNWALA 04/10/18 0000970620005361 9,946.50 D 1819008
M0615 A V SHARES & STOCK BROKING (P) LTD. 04/10/18 0000970620004532 31,296.84 D 1819008
M0664 PLD SECURITIES PVT. LTD. 04/10/18 0000970620004195 20,682.98 D 1819008
M0758 S R STOCK BROKING PVT. LTD. 04/10/18 0000970620001811 1,718,455.14 D 1819008
M0860 KAILASH & CO. 04/10/18 0000970620002242 11,856.15 D 1819008

SPARTEK FINANCIERS AND INVESTMENT PVT
M0994 LTD 04/10/18 0000970620003140 574,381.52 D 1819008
M1049 AJAY KUMAR & CO. 04/10/18 0000970620005059 212,077.56 D 1819008
40
M1072 SKYBULL SHARES AND SECURITIES PVT LTD 04/10/18 0000970620005769 18,188.21 D 1819008
3,984,853.82
STATEMENT OF FUNDS PAY-IN & PAY-OUT OF NSE CASH SEGMENT FOR

MONTH OF APRIL 2018

7, LYONS RANGE
KOLKATA 700001
Member Sett.
Code Member Name Date Account No Amount Type Sett. No.
M0164 VPT SECURITIES LTD 04/10/18 0000970620004247 223,212.13 N 2018066
M0250 SAJJAN KUMAR SARAF 04/10/18 0000970620004878 180,917.09 N 2018066
M0310 CHUNILAL T. MEHTA 04/10/18 0000970620004144 1,110,659.46 N 2018066
M0468 PARAKH SECURITIES PVT. LTD. 04/10/18 0000970620004689 526,269.13 N 2018066
M0691 SHYAMJI SECURITIES PVT. LTD. 04/10/18 0000970620004497 8,100.28 N 2018066
M0758 S R STOCK BROKING PVT. LTD. 04/10/18 0000970620001811 1,136,924.81 N 2018066
M0881 BASANT GOENKA AND CO. 04/10/18 0000970620004178 60,009.65 N 2018066
M1051 ROYAL STOCK BROING 04/10/18 0000970620005111 38,520.04 N 2018066
M1065 BSAS SECURITIES LTD. 04/10/18 0000970620005491 411,172.85 N 2018066
3,695,785.44

7, LYONS RANGE
KOLKATA 700001
Member Sett. Sett.
Code Member Name Date Account No Amount Type No.
04/10/1 000097062000514 201806
M0196 ANC SECURITIES LTD 8 5 2,911,868.06 N 6
04/10/1 000097062000470 201806
M0265 GCS CAPITAL MARKETS PVT. LTD. 8 4 19,221.72 N 6
04/10/1 000097062000334 201806
M0441 K. P. C. SECURITIES PVT. LTD. 8 9 32,533.06 N 6
04/10/1 000097062000455 201806
M0484 SURYA PRAKASH TOSNIWAL 8 9 119,692.07 N 6
04/10/1 000097062000536 201806
M0505 PRABHAT KUMAR JHUNJHUNWALA 8 1 100,717.76 N 6
M0607 PAWAN KUMAR DEORA AND CO. 04/10/1 000097062000548 366.57 N 201806
41
8 1 6
04/10/1 000097062000365 201806
M0852 RAJEEV JHUNJHUNWALA 8 1 994,099.75 N 6
04/10/1 000097062000184 201806
M0866 FIX FIT SECURITIES PVT LTD 8 5 104,147.84 N 6
04/10/1 000097062000033 201806
M0902 NARESH KUMAR GUPTA 8 3 8,127.41 N 6
04/10/1 000097062000433 201806
M0979 ANIL AGARWAL 8 3 14,644.96 N 6
04/10/1 000097062000387 201806
M0984 RITURAJ SHARES AND SECURITIES LTD. 8 7 127,589.42 N 6
SPARTEK FINANCIERS AND INVESTMENT PVT 04/10/1 000097062000314 201806
M0994 LTD 8 0 3,281,553.58 N 6
04/10/1 000097062000477 201806
M1026 S JHUNJHUNWALA & CO 8 5 2,169,471.66 N 6
04/10/1 000097062000528 201806
M1048 NDB SECURITIES PVT LTD 8 2 4,418.26 N 6
04/10/1 000097062000505 201806
M1049 AJAY KUMAR CHIRIPAL 8 9 6,696.61 N 6
04/10/1 000097062000524 201806
M1058 ACCRETION SECURITIES PVT LTD 8 8 1,842,941.41 N 6
04/10/1 000097062000576 201806
M1072 SKYBULL SHARES AND SECURITIES PVT LTD 8 9 80,363.26 N 6
11,818,453.4
0
ESTIMATION
So, from the above analysis of statement of

funds pay in and pay out of BSE and NSE
for the month of April, 2018.
It is estimated that:
The funds pay in figure of BSE cash for

April 2018 is Rs.5857136.
The funds pay in figure of NSE cash is
Rs.3695785.44
The fund pay in amount of BSE cash is

higher than fund pay in amount of NSE
cash.
The funds pay out of NSE cash for

April,2018 is Rs. 11818453.40 and the fund
pay out figure of BSE cash is
Rs.3984852.82
So, it is estimated that the funds pay out

value of NSE cash for April,2018 is higher
42
than the funds pay out value of BSE cash.
For the month of April 2018,
The trading of funds and securities under

NSE is in par with BSE
STATEMENT OF FUNDS
PAY-IN & PAY-OUT OF
BSE CASH SEGMENT
FOR MONTH OF MAY
2018
THE CALCUTTA STOCK

EXCHANGE LTD
7, LYONS RANGE
KOLKATA 700001
STATEMENT OF FUNDS PAYIN FOR SETTLEMENT

NO. 1819031
Member
Code Member Name Date Dr/Cr Amount Sett. No. Remarks
M0076 SIDDHARTHA AND CO. 14/05/2018 D 2,54,898.70 1819031 FUNDS PAY IN 1819031
MPC STOCK BROKING
M0151 PVT LTD 14/05/2018 D 97,766.25 1819031 FUNDS PAY IN 1819031
SIKARIA SHARE &
STOCK BROKING
M0152 SERVICES PVT. LTD 14/05/2018 D 16,053.13 1819031 FUNDS PAY IN 1819031
M0164 VPT SECURITIES LTD 14/05/2018 D 4,919.48 1819031 FUNDS PAY IN 1819031
GOENKA SECURITIES
M0233 PVT LTD 14/05/2018 D 3,016.35 1819031 FUNDS PAY IN 1819031
M0250 SAJJAN KUMAR SARAF 14/05/2018 D 1,555.09 1819031 FUNDS PAY IN 1819031
GCS CAPITAL
M0265 MARKETS PVT. LTD. 14/05/2018 D 23,077.94 1819031 FUNDS PAY IN 1819031
M0390 TARUN SETHIA 14/05/2018 D 86,725.40 1819031 FUNDS PAY IN 1819031
43
K. P. C. SECURITIES
M0441 PVT. LTD. 14/05/2018 D 9,85,775.85 1819031 FUNDS PAY IN 1819031
SURYA PRAKASH
M0484 TOSNIWAL 14/05/2018 D 6,06,462.27 1819031 FUNDS PAY IN 1819031
INVESTECH
M0587 SECURITIES PVT LTD 14/05/2018 D 58,443.89 1819031 FUNDS PAY IN 1819031
M0616 ASHOK KR. SOMANI 14/05/2018 D 4.91 1819031 FUNDS PAY IN 1819031
M0979 ANIL AGARWAL 14/05/2018 D 2,84,616.99 1819031 FUNDS PAY IN 1819031
24,23,316.25
THE CALCUTTA STOCK EXCHANGE

LTD
7, LYONS RANGE
KOLKATA 700001
Member Sett. Sett.
Code Member Name Date Dr/Cr Amount Type No. Remarks
M0070 KHANDELWAL BROS. 14/05/2018 C 3,77,740.24 D 1819031 FUNDS PAY OUT 1819031
M0196 ANC SECURITIES LTD 14/05/2018 C 39,01,235.59 D 1819031 FUNDS PAY OUT 1819031
M0293 JALAN AND CO. 14/05/2018 C 86,678.18 D 1819031 FUNDS PAY OUT 1819031
M0310 CHUNILAL T. MEHTA 14/05/2018 C 1,36,470.68 D 1819031 FUNDS PAY OUT 1819031
PRABHAT KUMAR
M0505 JHUNJHUNWALA 14/05/2018 C 62,561.71 D 1819031 FUNDS PAY OUT 1819031
A V SHARES & STOCK
M0615 BROKING (P) LTD. 14/05/2018 C 14,76,368.84 D 1819031 FUNDS PAY OUT 1819031
MANI INVEST BROKERS
M0635 PVT LTD 14/05/2018 C 10,35,168.31 D 1819031 FUNDS PAY OUT 1819031
M0860 KAILASH & CO. 14/05/2018 C 34,073.67 D 1819031 FUNDS PAY OUT 1819031
M0881 BASANT GOENKA AND CO. 14/05/2018 C 61,685.72 D 1819031 FUNDS PAY OUT 1819031
RITURAJ SHARES AND
M0984 SECURITIES LTD. 14/05/2018 C 75,312.05 D 1819031 FUNDS PAY OUT 1819031
SPARTEK FINANCIERS
M0994 AND INVESTMENT PVT LTD 14/05/2018 C 2,39,244.03 D 1819031 FUNDS PAY OUT 1819031
M1026 S JHUNJHUNWALA & CO 14/05/2018 C 54,24,214.26 D 1819031 FUNDS PAY OUT 1819031
DEVANG MANAGEMENT
M1039 PVT LTD. 14/05/2018 C 8,15,125.34 D 1819031 FUNDS PAY OUT 1819031
DREAMWAY SHARE AND
M1050 STOCKS INDIA LTD. 14/05/2018 C 35,07,937.32 D 1819031 FUNDS PAY OUT 1819031
ACCRETION SECURITIES
M1058 PVT LTD 14/05/2018 C 39,503.87 D 1819031 FUNDS PAY OUT 1819031
M1065 BSAS SECURITIES LTD. 14/05/2018 C 24,97,463.48 D 1819031 FUNDS PAY OUT 1819031
1,97,70,783.2
9
STATEMENT OF FUNDS PAY-

IN & PAY-OUT OF NSE CASH
SEGMENT FOR MONTH OF
MAY 2018
44
7, LYONS RANGE
KOLKATA 700001
Member Sett.
Code Member Name Date Dr/Cr Amount Type Sett. No. Remarks
M0005 B. NEWAR & CO. 14/05/2018 C 1,55,523.50 N 2018088 FUNDS PAY OUT 2018088
M0196 ANC SECURITIES LTD 14/05/2018 C 5,67,290.21 N 2018088 FUNDS PAY OUT 2018088
M0310 CHUNILAL T. MEHTA 14/05/2018 C 2,66,364.59 N 2018088 FUNDS PAY OUT 2018088
M0441 K. P. C. SECURITIES PVT. LTD. 14/05/2018 C 22,68,444.13 N 2018088 FUNDS PAY OUT 2018088
NARENDRA KUMAR DAKALIA &
M0509 Co 14/05/2018 C 3,598.71 N 2018088 FUNDS PAY OUT 2018088
SHYAMJI SECURITIES PVT.
M0691 LTD. 14/05/2018 C 28,648.75 N 2018088 FUNDS PAY OUT 2018088
M0852 RAJEEV JHUNJHUNWALA 14/05/2018 C 281.93 N 2018088 FUNDS PAY OUT 2018088
M0866 FIX FIT SECURITIES PVT LTD 14/05/2018 C 2,59,312.10 N 2018088 FUNDS PAY OUT 2018088
RESPONCE SECURITIES PVT
M0900 LTD 14/05/2018 C 51,07,961.24 N 2018088 FUNDS PAY OUT 2018088
M0902 NARESH KUMAR GUPTA 14/05/2018 C 24,445.77 N 2018088 FUNDS PAY OUT 2018088
M0979 ANIL AGARWAL 14/05/2018 C 3,07,766.40 N 2018088 FUNDS PAY OUT 2018088
RITURAJ SHARES AND
M0984 SECURITIES LTD. 14/05/2018 C 26,597.87 N 2018088 FUNDS PAY OUT 2018088
SPARTEK FINANCIERS AND
M0994 INVESTMENT PVT LTD 14/05/2018 C 9,77,128.59 N 2018088 FUNDS PAY OUT 2018088
M1026 S JHUNJHUNWALA & CO 14/05/2018 C 89,60,406.95 N 2018088 FUNDS PAY OUT 2018088
M1049 AJAY KUMAR CHIRIPAL 14/05/2018 C 5,657.81 N 2018088 FUNDS PAY OUT 2018088
ACCRETION SECURITIES PVT
M1058 LTD 14/05/2018 C 8,85,859.45 N 2018088 FUNDS PAY OUT 2018088
M1065 BSAS SECURITIES LTD. 14/05/2018 C 3,07,619.43 N 2018088 FUNDS PAY OUT 2018088
2,01,52,907.4
3

7, LYONS RANGE
KOLKATA 700001
Member Dr/C Sett. Sett.
Code Member Name Date r Amount Type No. Remarks
GAUTAM KUMAR 14/05/201 201808 FUNDS PAY IN
M0670 AGRAHARI 8 D 1,780.23 N 8 2018088
14/05/201 31,93,404.7 201808 FUNDS PAY IN
M1025 BHARTIA BROS. 8 D 0 N 8 2018088
RAUNAK KAUSHIK AND 14/05/201 201808 FUNDS PAY IN
M1061 CO. 8 D 93,777.54 N 8 2018088
32,88,962.4
7
ESTIMATION
45
Fromthe above analysis of statement of funds pay in and pay out of BSE and NSE for the
month of May, 2018.
It is estimated that:
The funds pay in of NSE cash for May,2018 is Rs. 3288962.47 and the fund pay in figure of
BSE cash is Rs. 2423316.25.
So, it is estimated that the funds pay in value of NSE cash for May,2018 is higher than the
funds pay in value of BSE cash.
Again,
The funds pay out of NSE cash for May,2018 is Rs. 20152907.43 and the fund pay in
figure of BSE cash is Rs. 19770783.29.
So, it is estimated that the funds pay out value of NSE cash for May,2018 is higher than the
funds pay out value of BSE cash.
The value of funds pay in and pay out on each trading day under NSE is much higher as
compared to BSE.
The funds pay in and pay out under NSE is higher in amount as compared to BSE.
For the month of May 2018 , the trading of NSE is higher thanBSE.
11. SETTLEMENT SEGMENT

SETTLEMENT
Investors buy / sale securities on stock exchange platform by placing buy / sale orders through
their stock brokers with whom they registered as a client. On successful execution of order
(buy/sell) securities will be bought/sold on behalf for the client.
This activity known as buying/selling of securities on the stock exchange platform on specific
days which is known as trading day. This activity is referred as trading and is carried out by stock
exchanges for a specific period called as trading hours.
After the trading activity is completed, the process of delivering securities by the seller and
payment of funds by the buyer is called as securities pay-in/funds pay-in respectively.
This activity also has to be conducted within a stipulated time period. After the pay-in process is
completed successfully, the Clearing corporation will initiate payout process wherein the buyer
will get shares and seller will get money.
These mentioned activities of pay in and payout are collectively referred as settlement process.
SETTLEMENT NUMBER
Each settlement is identified by a unique number called as settlement id/Settlement number. The
settlement number for BSE and NSE Cash and F&O segments are different.
46
SETTLEMENT CYCLE
NSCCL clears and settles trades as per the well-defined settlement cycles.
All the securities are being traded and settled under T+2 rolling settlement. The NSCCL notifies
the relevant trade details to clearing members/custodianson the trade day (T), which are affirmed
on T+1 to NSCCL.
Based on it, NSCCL nets the positions of counterparties to determine their obligations.
A clearing member has to pay-in/pay-out funds and/or securities. The obligations are netted for a
member across all securities to determine his fund obligations and he has to either pay or receive
funds.
Members’ pay-in/pay-out obligations are determined latest by T+1 and are forwarded to them on
the same day, so that they can settle their obligations on T+2.
The securities/funds are paid-in/paid-out on T+2 day to the members’ clients’ and the settlement
is complete in 2 days from the end of the trading day. The settlement cycle for the CM segment
are presented. The settlement cycle for the CM segment are presented.
DEMAT ACCOUNT
A Demat account holds all the shares that you purchase in electronic or dematerialized form.
Basically, a Demat account is to your shares what a bank account is to your money. Like the
bank account, a Demat account holds the certificates of your financial instruments like shares,
bonds, government securities, mutual funds and exchange traded funds (ETFs).
TRADE FOR TRADE
Trade to Trade settlement is a segment where shares can be traded only for compulsory delivery
basis. It means Trade to Trade shares cannot be traded on intraday. Each share purchased/sold
which are parts of this segment need to be taken delivery by paying full amount. For example: In
Normal rolling settlement, one can trade stocks intraday (One can buy and sell a security on the
same day).
SETTLEMENT STATISTICS
There has been a substantial reduction in short and bad deliveries. Short deliveries averaged
around 0.21% of total delivery in 2008-09.
During 2008-09, taking all stock exchanges together, 23.15% of securities accounting for 21.83
% turnover were settled by delivery and the balance were squared up/netted out . In the
preceding year, 29.54 % of shares accounting for 28.21 % of turnover was settled by delivery.
This indicates preference for non-delivery-based trades.
47
DE - MATERIALIZED SETTLEMENT
NSE along with leading financial institutions established the National Securities Depository Ltd.
(NSDL), the first depository in the country, with the objective to reduce the menace of
fake/forged and stolen securities and thereby enhance the efficiency of the settlement systems.
This has ushered in an era of dematerialized trading and settlement.
SEBI, too, has been progressively promoting de materialization by mandating settlement only
through dematerialized form for more and more securities. The share of de mat delivery in total
delivery at NSE was 100% in terms of value during 2008-09.
12. FUTURE AND OPTION SEGMENT FOR TRADING

FUTURES
A futures contract is an agreement between two parties to buy or sell an asset at a certain time in
the future at a certain price.
Such an agreement works for those who do not have the money to buy the contract now but can
bring it in at a certain date. These contracts are mostly used for arbitrage by traders. It means
traders buy a stock at a low price in the cash market and sell it at a higher price in the futures
market or vice versa. The idea is to play on the price difference between two markets for the
same stock.
In case of futures contracts, the obligation is on both the buyer and the seller to execute the
contract at a certain date. Futures contracts are special types of forward contracts. They are
standardized exchange-traded contracts like futures of the Nifty index.
OPTIONS
An Option gives the buyer the right but not the obligation. As a buyer, you may choose to let the
option to buy call or put option lapse. The seller has an obligation to comply with the contract. In
the case of a futures contract, there is an obligation on the part of both the buyer and the seller.
Options are of two types - Calls and Puts options:

'Calls' give the buyer the right, but not the obligation to buy a given quantity of the underlying
asset, at a given price on or before a given future date.
'Puts' give the buyer the right, but not the obligation to sell a given quantity of underlying asset at
a given price on or before a given future date.
If the buyer of options chooses to exercise the option to buy, the counter-party (seller) must
comply. A futures contract, on the other hand, is binding on both counter-parties as both parties
48
have to settle on or before the expiry date.
OPTIONS CONTRACT
The best way to begin our introduction to options trading is to define exactly what options are.
Although commonly referred to simply as options, the full term is options contracts, because
they are financial contracts between two parties. In very basic terms, they specify a future
transaction on a specified asset at a specified price.
The buyer of the contract has the right, but not the obligation, to initiate that specified
transaction. The seller of the contract has the related obligation to carry out the transaction
should the holder choose to initiate it.
OPTIONS TRADING
When most people think of investment, they think of buying stocks on the stock market, and
many are probably completely unaware of terms like options trading. Buying stocks and holding
on to them with a view to making long term gains is after all, one of the more common
investment strategies. It's also a perfectly sensible way to invest, providing you have some idea
about which stocks you should be buying or use a broker that can offer you advice and guidance
on such matters.
These days, many investors are choosing to use a more active investment style in order to try and
make more immediate returns.This approach is known as a buy and hold strategy and can help
you increase your wealth in the long run, but it doesn’t provide much, if anything, in the way of
short term gains.
13. CONCLUSION
 SEBI a regulatory body of Indian stock market protects the interest of the
investors. Thus, the interest of the investors in the Calcutta Stock Exchange is
protected as perimplementation of the SEBI regulations.
 Calcutta Stock market provides an opportunity to money lender and money seeker
to invest and use money for their plan.
 It provides an opportunity to the investor to be the owner of the company and

contribute in the business decision of the company.
 Calcutta Stock market is a kind of indicator of the economic growth of the

country where it provides an opportunity to gain according to the inflation of the
country or more than that.
 Presence of large number of securities which provides medium for investment.
49
 Presence of large number of Brokers who plays a role of facilitator for
investment.
 The Calcutta Stock Exchange market has its ability to provide high return.
 The SEBI will have to ensure that the regional bourses do not die as a result of the
emergence of the NSE and the BSE but are given the right ambience to chart out a
survival strategy for them.
 Calcutta Stock Market is the mitigation of risk through the spreading of

investments across multiple entities, which is achieved by the pooling of a
number of small investments into a large bucket.
 Calcutta Stock Market is the most suitable investment for the common man as it
offers an opportunity to invest in a diversified, professionally managed portfolio
at a relatively low cost.
 Enlistment of corporate securities in more than one stock exchange at the same
time improves liquidity of securities and functioning of stock exchange.
 There is existence of wild speculation in the Indian stock market - According to

L.C. Gupta.
 Stock market movements are largely influenced by, broad money supply,
inflation, C/D ratio and fiscal deficit apart from political stability - According to
Debjit Chakraborty.
 There are theories like the Fundamental analysis, Technical analysis etc. to
evaluate the securities- According to Avijit Banerjee.
 Low execution costs make the derivatives especially futures, very suitable for
frequent and short term trading to manage risk, more effectively- According to
Sunil Damodar.
14. RECOMMENDATION
 The trading system has to be made more transparent.

 Marketinformation is a crucial public good that should be disclosed or madeavailable to
all participants to achieve market efficiency.
 India may needfurther integration of the national capital market through consolidation of
stock exchanges. The trend all over the world is to consolidate and merge theexisting
stock exchanges.
 There is a huge need to develop a uniformsettlement cycle and common clearing system
that will bring to endunnecessary speculation based on arbitrageopportunities.
50
 Since,buying and selling of different types of securities take place in stockexchanges, the
prices of particular securities should be transparent to reflect their relative demand
andsupply.
 The Calcutta stock exchange market’s infrastructure has to be improved as it hinders the
efficient flowof information and effective corporate governance.
 The court system and legalmechanism should be enhanced to better protect small
shareholders’ rights and their capacity to monitor the corporate activities.
 Trading technology has to be transparent so that the investors gravitate to the Calcutta
Stock market exchanges as a result of better rates and higher liquidity.
15. LIMITATION OF STUDY

 The report is limited to the secondary data and information provided by the company.
 Scope of the work is so huge that 15 weeks is really inadequate to do full justice to the
project.
 A Court Case against the Exchange (CSE) with the Regulator SEBI is pending at the
Calcutta High Court.
 Many of the companies are opting for delisting of their shares as they are not getting any
opportunity to trade.
 Restriction of access to the system.
16. ANNEXURES
ANNEXURE - 1
LIST OF THE MEMBERS UNDERGOING
TRADE WITH CSE TILL DATE:
51
SL. MEMBER MEMBERS
NO. CODE
1 M0076 SIDDHARTHA AND CO
2 M0152 SIKARIA SHARES AND STOCK

BROKING SERVICES PVT. LTD.
3 M0293 JALAN AND CO.
4 M0310 CHUNILAL T. MEHTA

5 M1072 SKYBULL SHARES AND
SECURITIES PVT. LTD
6 M0250 M/S SAJJAN KUMAR SARAF
7 M0994 SPARTEK FINANCIERS AND
INVESTMENT LTD
8 M1042 GIRIRAJ STOCK BROKING PVT.
LTD
9 M0208 ASHOK KUMAR KAYAN
10 M1050 DREAMWAY SHARE AND STOCKS
INDIA LTD
11 M0390 TARUN SETHIA
12 M0484 SURYA PRAKASH TOSNIWAL
13 M0635 MANI INVEST BROKERS PVT LTD
14 M0505 PRABHAT KUMAR

JHUNJHUNWALA
15 M1026 S. JHUNJHUNWALA AND CO.
16 M0860 KAILASH AND CO
17 GOENKA SECURITIES PVT LTD

M0233
18 M0984 RITURAJ SHARES AND
SECURITITES LTD
19 M1025 BHARTIA BROTHERS.
20 M0070 KHANDELWAL BROS
21 M0587 INVESTECH SECURITIES PVT LTD
22 M0881 BASANT GOENKA AND CO
23 M1058 ACCRETION SECURITIES PVT LTD
52
ANNEXURE - 2
This is a statement given below showing the Valan summary or Valan report of BSE
Capital for 7th May,2018.
TABLE - 1
Pay-In : 5/7/2018 / Pay-Out : 5/7/2018 11:59:00 PM
99885 CLEARING HOUSE 0 5,189,750.81
99971 TURNOVER TAX 0 5,953.91
99972 STT CHARGES 0 25,189.00
M0076 SIDDHARTHA AND CO. 142,372.64 0
M0151 MPC STOCK BROKING PVT LTD 28,945.83 0
SIKARIA SHARE & STOCK BROKING SERVICES PVT.
M0152 6,066.24 0
LTD
M0196 ANC SECURITIES LTD. 0 5,168,617.90
M0250 SAJJAN KUMAR SARAF 265,770.80 0
M0293 JALAN AND CO. 30,286.48 0
M0310 CHUNILAL T. MEHTA 9,945,975.90 0
M0441 K. P. C. SECURITIES PVT. LTD. 531,281.40 0
M0468 PARAKH SECURITIES PVT. LTD. 0 24,240.31
53
M0587 INVESTECH SECURITIES PVT LTD 49,519.75 0
M0616 ASHOK KR. SOMANI 651.54 0
M0635 MANI INVEST BROKERS PVT LTD 427,499.52 0
M0860 KAILASH AND CO 44,217.19 0
M0979 ANIL AGARWAL 0 162,824.46
M1026 SHRADDHA JHUNJHUNWALA 434,625.73 0
M1039 DEVANG MANAGEMENT PVT LTD 0 1,600,148.27
M1048 NDB SECURITIES PVT. LTD. 41,099.12 0
M1050 DREAMWAY SHARE AND STOCKS INDIA LTD. 18,046.51 0
M1065 BSAS SECURITIES LTD 199.5 0
WB_CGS
WB_CGST 0 538.44
T
WB_SGS
WB_SGST 0 538.44
T
12,278,961.5 12,278,961.5
Total
7 7
TABLE - 2

Pay-In : 5/7/2018 / Pay-Out : 5/7/2018 11:59:00 PM
100 ROUNDING OFF 0 0
99885 CLEARING HOUSE 254,315.97 0
99971 TURNOVER TAX 0 1,281.07
99972 STT CHARGES 0 4,157.00
M0070 KHANDELWAL BROS. 320,506.22 0
M0233 GOENKA SECURITIES PVT LTD 0 412,578.11
M0250 SAJJAN KUMAR SARAF 646.3 0
M0265 GCS CAPITAL MARKETS PVT. LTD. 354.85 0
M0293 JALAN AND CO. 114.91 0
54
M0860 KAILASH AND CO 16,244.58 0
M1025 BHARTIA BROTHERS 0 247,778.22
WB_CGS
WB_CGST 0 115.61
T
Total 670,193.35 670,193.35

TABLE – 3
Valan Summary for Settlement 2018025

PAYIN------------> 12,340,349.67 PAYOUT-----------> 7,366,929.88
ROUNDING OFF 0.03 ROUNDING OFF 0
CLEARING HOUSE 254315.97 CLEARING HOUSE 5189750.81
55
WB_CGST 1,308.10
0
12,594,665.67 12,594,665.67
0.00
0990620005432

11/4/2018 12340349.67 7366929.88 11/4/2018
Payout
Transfer from BSE - 1,714,822.00 Tr. to BSE

SD/ND TOC CSE
SEBI TOT
Service Tax
12,340,349.67 9,081,751.88
3,258,597.79
Here , the total pay in figure is Rs.12340349.67 and the total pay out figure is Rs.7366929.88.
The pay out figure of Rs.7366929.88 is adjusted with transfer amount to BSE of Rs.1714822 to
obtain the net pay out balance of Rs.9081751.88.
ANNEXURE - 3
This is a statement given below showing the Valan summary or Valan report of BSE
Capital for 17th April, 2018.
TABLE- 1
56
Pay-In : 4/17/2018 / Pay-Out : 4/17/2018 11:59:00 PM
100 ROUNDING OFF 0 0.08
99885 CLEARING HOUSE 30,651,325.91 0
99971 TURNOVER TAX 0 6,075.31
99972 STT CHARGES 0 59,149.00
M0070 KHANDELWAL BROS. 263,048.91 0
M0076 SIDDHARTHA AND CO. 0 210,878.36
M0151 MPC STOCK BROKING PVT LTD 675,933.12 0
M0152 SIKARIA SHARE & STOCK BROKING SERVICES PVT. LTD 7,775.69 0
M0196 ANC SECURITIES LTD. 3,931,753.72 0
M0233 GOENKA SECURITIES PVT LTD 0 7,479.37
M0250 SAJJAN KUMAR SARAF 0 228,619.90
M0265 GCS CAPITAL MARKETS PVT. LTD. 0 81,508.12
M0293 JALAN AND CO. 592,236.57 0
M0310 CHUNILAL T. MEHTA 0 298,527.13
M0390 TARUN SETHIA 299,082.07 0
M0468 PARAKH SECURITIES PVT. LTD. 0 5,212.89
57
M0505 PRABHAT KUMAR JHUNJHUNWALA 0 98,101.40
M0587 INVESTECH SECURITIES PVT LTD 0 42,798.58
M0615 AV SHARES AND STOCK BROKING (P) LTD. 1,887.81 0
M0616 ASHOK KR. SOMANI 1,551.45 0
M0635 MANI INVEST BROKERS PVT LTD 0 101,075.32
M0691 SHYAMJI SECURITIES PVT. LTD. 0 18,795.32
M0860 KAILASH AND CO 0 27,759.47
M0881 BASANT GOENKA AND CO. 0 33,836.40
M0979 ANIL AGARWAL 177,340.38 0
M1025 BHARTIA BROTHERS 0 22,098.45
M1026 SHRADDHA JHUNJHUNWALA 0 37,400,007.15
M1039 DEVANG MANAGEMENT PVT LTD 1,462,107.49 0
M1048 NDB SECURITIES PVT. LTD. 1,625,265.05 0
M1050 DREAMWAY SHARE AND STOCKS INDIA LTD. 3,307.88 0
M1058 ACCRETION SECURITIES PVT LTD 0 523,239.19
M1065 BSAS SECURITIES LTD 0 11,776.73
M1070 DFS SECURITIES 0 2,194.88
WB_CGST WB_CGST 0 549.19
WB_IGST WB_IGST 0 0.48
Total 39,917,221.88 39,917,221.88
TABLE-2
Pay-In : 4/17/2018 / Pay-Out : 4/17/2018 11:59:00
58
PM
99885 CLEARING HOUSE 0 381,826.55
99971 TURNOVER TAX 0 310.21
99972 STT CHARGES 0 577
M0293 JALAN AND CO. 4,226.05 0
M0484 SURYA PRAKASH TOSNIWAL 0 38,780.89
M0587 INVESTECH SECURITIES PVT LTD 19,261.24 0
M0635 MANI INVEST BROKERS PVT LTD 77,404.22 0
M0664 PLD SECURITIES PVT. LTD. 205,856.07 0
M0860 KAILASH AND CO 0 271.15
M0881 BASANT GOENKA AND CO. 4,556.44 0
WB_CGS
WB_CGST 0 27.99
T
Total 445,281.63 445,281.63

59
TABLE-3
Valan Summary for Settlement : 2018012

39,704,259.3
PAYIN------------> 9,502,172.70 PAYOUT-----------> 5
ROUNDING OFF 0.02 ROUNDING OFF 0.08
CLEARING HOUSE 30651325.91 CLEARING HOUSE 381826.55
WB_CGST 1,154.84
0
40,153,498.6
40,153,498.63 3
0.00
0990620005432

5/3/2018 9502172.70 39704259.35 5/3/2018
Payout
Transfer from BSE - Tr. to BSE

SD/ND TOC CSE
SEBI TOT
Service Tax
9,502,172.70 39,704,259.35
(30,202,086.65)
60
Here , the total pay in figure is Rs.9502172.70 and the total pay out figure is Rs.39704259.35 .
The pay out figure of Rs. 39704259.35 is adjusted with transfer amount of Rs. 39704259.35 to
obtain the net pay out negative balance of Rs.(30202086.65).
ANNEXURE --- 4
SETTLEMENT CALENDAR FOR NSE CASH SEGMENT FOR THE MONTH

OF MAY 2018
NATIONAL SECURITIES CLEARING CORPORATION LIMITED

Regd. Office: Exchange Plaza, BandraKurla Complex, Bandra (E), Mumbai – 400 051
DEPARTMENT: CAPITAL MARKET SEGMENT
Date: Apr 06, 2018
Circular Ref. No: 039/2018
All Members/Custodians/PCMs
Sub: CM - Settlement calendar for May 2018
Settlement type – N [Normal segment]
SETTLEMENT CALENDAR NORMAL SEGMENT (ROLLING T+2)

Settlement Settlement Trade Start Trade End Custodial Settlement
Type No. Date Date Confirmatio Date
n Date
N 2018082 04-May-18 04-May-18 04-May-18 07-May-18
N 2018083 07-May-18 07-May-18 07-May-18 08-May-18
N 2018084 08-May-18 08-May-18 08-May-18 09-May-18
N 2018085 09-May-18 09-May-18 09-May-18 10-May-18
N 2018086 10-May-18 10-May-18 10-May-18 11-May-18
N 2018087 11-May-18 11-May-18 11-May-18 12-May-18
N 2018088 12-May-18 12-May-18 12-May-18 13-May-18
N 2018089 13-May-18 13-May-18 13-May-18 14-May-18
N 2018090 14-May-18 14-May-18 14-May-18 15-May-18
N 2018091 15-May-18 15-May-18 15-May-18 16-May-18
N 2018092 16-May-18 16-May-18 16-May-18 17-May-18
N 2018093 17-May-18 17-May-18 17-May-18 18-May-18
N 2018094 18-May-18 18-May-18 18-May-18 19-May-18
N 2018095 19-May-18 19-May-18 19-May-18 20-May-18
N 2018096 20-May-18 20-May-18 20-May-18 21-May-18
N 2018097 21-May-18 21-May-18 21-May-18 22-May-18
N 2018098 22-May-18 22-May-18 22-May-18 23-May-18
N 2018099 23-May-18 23-May-18 23-May-18 24-May-18
61
N 2018100 24-May-18 24-May-18 24-May-18 25-May-18
N 2018101 25-May-18 25-May-18 25-May-18 26-May-18
N 2018102 26-May-18 26-May-18 26-May-18 27-May-18
ANNEXURE --- 5

OF MAY 2018
NATIONAL SECURITIES CLEARING CORPORATION LIMITED

Regd. Office: Exchange Plaza, BandraKurla Complex, Bandra (E), Mumbai – 400 051
DEPARTMENT: CAPITAL MARKET SEGMENT
Date: Apr 06, 2018
Circular Ref. No: 039/2018
All Members/Custodians/PCMs
Sub: CM - Settlement calendar for May 2018
Settlement type –W [Trade for Trade segment]
SETTLEMENT CALENDAR TRADE FOR TRADE - S ROLLING SEGMENT

Type No. Date Date Confirmation Date
Date
W 2018082 02 May2018 02 May2018 03 May2018 04 May2018
W 2018083 03 May2018 03 May2018 04 May2018 07 May2018
W 2018084 04 May2018 04 May2018 07 May2018 08 May2018
W 2018085 07 May2018 07 May2018 08 May2018 09 May2018
W 2018086 08 May2018 08 May2018 09 May2018 10 May2018
W 2018087 09 May2018 09 May2018 10 May2018 11 May2018
W 2018088 10 May2018 10 May2018 11 May2018 14 May2018
W 2018089 11 May2018 11 May2018 14 May2018 15 May2018
W 2018090 14 May2018 14 May2018 15 May2018 16 May2018
W 2018091 15 May2018 15 May2018 16 May2018 17 May2018
W 2018092 16 May2018 16 May2018 17 May2018 18 May2018
W 2018093 17 May2018 17 May2018 18 May2018 21 May2018
W 2018094 18 May2018 18 May2018 21 May2018 22 May2018
W 2018095 21 May2018 21 May2018 22 May2018 23 May2018
W 2018096 22 May2018 22 May2018 23 May2018 24 May2018
W 2018097 23 May2018 23 May2018 24 May2018 25 May2018
W 2018098 24 May2018 24 May2018 25 May2018 28 May2018
W 2018099 25 May2018 25 May2018 28 May2018 29 May2018
W 2018100 28 May2018 28 May2018 29 May2018 30 May2018
W 2018101 29 May2018 29 May2018 30 May2018 31 May2018
W 2018102 30 May2018 30 May2018 31 May2018 01June2018
62
ANNEXURE --- 6
SETTLEMENT CALENDAR FOR BSE CASH SEGMENT FOR THE MONTH OF MAY
2018
Trade date Settlement No. Pay-in / Pay-out date

04/05/18
02/05/18 1819024
03/05/18 1819025 07/05/18
04/05/18 1819026 08/05/18
07/05/18 1819027 09/05/18
08/05/18 1819028 10/05/18
09/05/18 1819029 11/05/18
10/05/18 1819030 14/05/18
11/05/18 1819031 15/05/18
14/05/18 1819032 16/05/18
15/05/18 1819033 17/05/18
16/05/18 1819034 18/05/18
17/05/18 1819035 21/05/18
18/05/18 1819036 22/05/18
21/05/18 1819037 23/05/18
22/05/18 1819038 24/05/18
23/05/18 1819039 25/05/18
24/05/18 1819030 27/05/18
25/05/18 1819040 28/04/18
28/05/18 1819041 29/05/18
29/05/18 1819042 30/05/18
30/05/18 1819043 31/05/18
ANNEXURE ---7
OF APRIL 2018
NATIONAL SECURITIES CLEARING CORPORATION LIMITED Regd.

Office : Exchange Plaza, Bandra Kurla Complex, Bandra (E), Mumbai – 400 051
DEPARTMENT : CAPITAL MARKET SEGMENT
Ref No : NSCCL/CMPT/37123
Date : Mar 06, 2018
Circular Ref. No : 039/2018 All Members/Custodians/PCMs
Sub: CM - Settlement calendar for April 2018
63
Settlement type – N [Normal segment]

Date
N 2018061 02 Apr 2018 02 Apr 2018 03 Apr 2018 04 Apr 2018
N 2018062 03 Apr 2018 03 Apr 2018 04 Apr 2018 05 Apr 2018
N 2018063 04 Apr 2018 04 Apr 2018 05 Apr 2018 06 Apr 2018
N 2018064 05 Apr 2018 05 Apr 2018 06 Apr 2018 09 Apr 2018
N 2018065 06 Apr 2018 06 Apr 2018 09 Apr 2018 10 Apr 2018
N 2018066 09 Apr 2018 09 Apr 2018 10 Apr 2018 11 Apr 2018
N 2018067 10 Apr 2018 10 Apr 2018 11 Apr 2018 12 Apr 2018
N 2018068 11 Apr 2018 11 Apr 2018 12 Apr 2018 13 Apr 2018
N 2018069 12Apr 2018 12Apr 2018 13Apr 2018 16Apr 2018
N 2018070 13 Apr 2018 13 Apr 2018 16 Apr 2018 17 Apr 2018
N 2018071 16 Apr 2018 16 Apr 2018 17 Apr 2018 18 Apr 2018
N 2018072 17 Apr 2018 17 Apr 2018 18 Apr 2018 19 Apr 2018
N 2018073 18 Apr 2018 18 Apr 2018 19 Apr 2018 20 Apr 2018
N 2018074 19 Apr 2018 19 Apr 2018 20 Apr 2018 23 Apr 2018
N 2018075 20 Apr 2018 20 Apr 2018 23 Apr 2018 24 Apr 2018
N 2018076 23 Apr 2018 23 Apr 2018 24 Apr 2018 25 Apr 2018
N 2018077 24 Apr 2018 24 Apr 2018 25 Apr 2018 26 Apr 2018
N 2018078 25 Apr 2018 25 Apr 2018 26 Apr 2018 27 Apr 2018
N 2018079 26 Apr 2018 26 Apr 2018 27 Apr 2018 02 May 2018
N 2018080 27 Apr 2018 27 Apr 2018 02 May 2018 03 May 2018
N 2018081 30 Apr 2018 30 Apr 2018 02 May 2018 03 May 2018
ANNEXURE ---8
OF APRIL 2018
NATIONAL SECURITIES CLEARING CORPORATION LIMITED Regd.

Office : Exchange Plaza, Bandra Kurla Complex, Bandra (E), Mumbai – 400 051
DEPARTMENT : CAPITAL MARKET SEGMENT
Ref No : NSCCL/CMPT/37123
Date : Mar 06, 2018
Circular Ref. No : 039/2018 All Members/Custodians/PCMs
Sub: CM - Settlement calendar for April 2018
Settlement type –W [Trade for Trade segment]
64
Date
W 2018061 02 Apr 2018 02 Apr 2018 03 Apr 2018 04 Apr 2018
W 2018062 03 Apr 2018 03 Apr 2018 04 Apr 2018 05 Apr 2018
W 2018063 04 Apr 2018 04 Apr 2018 05 Apr 2018 06 Apr 2018
W 2018064 05 Apr 2018 05 Apr 2018 06 Apr 2018 09 Apr 2018
W 2018065 06 Apr 2018 06 Apr 2018 09 Apr 2018 10 Apr 2018
W 2018066 09 Apr 2018 09 Apr 2018 10 Apr 2018 11 Apr 2018
W 2018067 10 Apr 2018 10 Apr 2018 11 Apr 2018 12 Apr 2018
W 2018068 11 Apr 2018 11 Apr 2018 12 Apr 2018 13 Apr 2018
W 2018069 12Apr 2018 12Apr 2018 13Apr 2018 16Apr 2018
W 2018070 13 Apr 2018 13 Apr 2018 16 Apr 2018 17 Apr 2018
W 2018071 16 Apr 2018 16 Apr 2018 17 Apr 2018 18 Apr 2018
W 2018072 17 Apr 2018 17 Apr 2018 18 Apr 2018 19 Apr 2018
W 2018073 18 Apr 2018 18 Apr 2018 19 Apr 2018 20 Apr 2018
W 2018074 19 Apr 2018 19 Apr 2018 20 Apr 2018 23 Apr 2018
W 2018075 20 Apr 2018 20 Apr 2018 23 Apr 2018 24 Apr 2018
W 2018076 23 Apr 2018 23 Apr 2018 24 Apr 2018 25 Apr 2018
W 2018077 24 Apr 2018 24 Apr 2018 25 Apr 2018 26 Apr 2018
W 2018078 25 Apr 2018 25 Apr 2018 26 Apr 2018 27 Apr 2018
W 2018079 26 Apr 2018 26 Apr 2018 27 Apr 2018 02 May 2018
W 2018080 27 Apr 2018 27 Apr 2018 02 May 2018 03 May 2018
W 2018081 30 Apr 2018 30 Apr 2018 02 May 2018 03 May 2018
ANNEXURE --9
SETTLEMENT CALENDAR FOR BSE &NSE CASH SEGMENT FOR THE MONTH
OF FEBRUARY 2018
BSE NSE Trade Day Trading Pay In / Pay Auction Auction

Settlement Settlement Date Out Date Pay In /
No. No. Pay Out
1718211 2018023 Thursday 01-Feb-18 05-Feb-18 05-Feb-18 06-Feb-18
1718212 2018024 Friday 02-Feb-18 06-Feb-18 06-Feb-18 07-Feb-18
1718213 2018025 Monday 05-Feb-18 07-Feb-18 07-Feb-18 08-Feb-18
1718214 2018026 Tuesday 06-Feb-18 08-Feb-18 08-Feb-18 09-Feb-18
1718215 2018027 Wednesday 07-Feb-18 09-Feb-18 09-Feb-18 12-Feb-18
1718223 2018035 Tuesday 20-Feb-18 22-Feb-18 22-Feb-18 23-Feb-18
65
1718227 2018039 Monday 26-Feb-18 28-Feb-18 28-Feb-18 01-Mar-18
1718228 2018040 Tuesday 27-Feb-18 01-Mar-18 01-Mar-18 05-Mar-18
1718229 2018041 Wednesday 28-Feb-18 05-Mar-18 05-Mar-18 06-Mar-18
ANNEXURE –10
WEEKLY SIP REPORT FROM 20TH FEB 2018 TO 1ST JUNE 2018
Week no. 1
Date of 25th Feb 2018

submission of
weekly report
Date Day Activity Remarks

20th Feb 2018 Tuesday Basics and an Overview of Gained basic knowledge of
NSE and BSE stock exchange market . Got
to know about the two stock
exchange markets NSE and
BSE
21st Feb 2018 Wednesday How CSE works Got to know how CSE
works with NSE and BSE
22nd Feb 2018 Thursday An overview of margin Gained knowledge of the
and settlement operations made under
departments under CSE margin and settlement
departments of CSE
23rd Feb 2018 Friday How transactions are made Got knowledge about how
under margin and clients are handled and
settlement departments of Accounts are handled under
CSE the margin and settlement
departments of CSE
Week no. 2
Date of 4th March 2018

submission of
weekly report
66
26th Feb 2018 Monday How Funds Pay-in and Got to know of how the
Pay-out are performed in process of funds Pay-in and
the Settlement process of Pay-out is done in the
the Exchange departments Exchange departments of
of Cash and Fund Cash and Fund operations.
operations
27th Feb 2018 Tuesday How to make voucher Gained experience of
entry for making transfers making voucher entry for
and adjustments of margin making transfers or
in the Margin and adjustments of margin in the
Settlement departments. Margin and Settlement
departments of CSE.
28th Feb 2018 Wednesday How to prepare Got to know how to prepare
Reconciliation statements Reconciliation statements of
of funds from the Balance funds from the Balance
Sheets of the banks which Sheets of the banks which
are used for trading with are used for trading with
CSE CSE
1st March 2018 Thursday Holiday - Nil Nil
2nd March 2018 Friday Holiday - Nil Nil
Week no. 3

submission of
weekly report

5th March 2018 Tracking the daily trading Got to know of how to track
Monday process of Funds Pay-in the daily trading process of
and Pay-out under the funds Pay-in and Pay-out
Settlement process of BSE under the settlement process
and NSE Cash and F&O in the Exchange departments
operations with CSE. of Cash and Fund
operations.
6th March 2018 Tuesday Summarizing the daily Gained experience of
funds pay-in and pay-out summarizing the daily funds
under the settlement pay-in and pay-out under the
process based on their settlement process based on
settlement numbers on their settlement numbers on
each trading day under each trading day under BSE
BSE and NSE Cash and and NSE Cash and F&O
F&O operations with CSE operations with CSE
7th March 2018 Wednesday Preparing Reconciliation Got to know how to prepare
67
statements of all the funds Reconciliation statements of
pay-in and pay-out under funds under Settlement
Settlement process at the process at the end of each
end of each trading day trading day under T+2
under T+2 system of trade. system of trade, from the
Balance Sheets of the banks
which are used for trading
with CSE
8th March 2018 Thursday Creating a copy of print Gained experience of how to
of the list of Fund Pay-in create a copy of the print of
and Pay-out of the the list of Fund Pay-in and
Settlement process and Pay-out of the Settlement
uploading the same in the process and uploading the
CSE portal . same in the CSE portal.
9th March 2018 Friday Got to know how to make
voucher entry of Funds
Making voucher entry of transfers, payments and
funds transfers, adjustments for different
adjustments,etc. companies under the BSE
Cash and NSE F&O
operations with CSE.
Week no. 4

submission of
weekly report

12th March 2018 Preparing Valan report of Gained experience of
Monday funds pay-in and pay-out at preparing Valan report of
the end of each trading day funds pay-in and pay-out at
based on the data obtained the end of each trading day
from the Exchange. based on the data obtained
from the Exchange
13th March 2018 Tuesday How to make voucher entry Gained experience of
for making payment, making voucher entry for
transfers and adjustments of making transfers or
margin in the Margin and adjustments of margin in the
Settlement departments. Margin and Settlement
departments of CSE.
14th March 2018 Wednesday Study of Client margin Got to know how through
report and the different the data obtained from the
modules under the client client margin report on a
margin report. regular and daily basis BSE
and NSE trades with CSE
68
15th March 2018 Thursday Study of Exchange Fund Got to know more in details
pay-in and pay-out reports of the Fund Pay-in and Pay-
and the Margin reports. out reports and the Margin
reports .
16th March 2018 Friday Study of some critical Got to know more in details
forms of margin in the of some other critical forms
Stock Exchange which is of margin in the Stock
also very important in exchange which are very
operations of trading of important in trading
BSE and NSE with CSE. operations of BSE and NSE
with the CSE..
Week no. 5
Date of 25TH March 2018

submission of
weekly report

19th March 2018 Tracking the daily trading Got to know of how to track
Monday process of Funds Pay-in and the daily trading process of
Pay-out under the Settlement funds Pay-in and Pay-out
process of BSE and NSE under the settlement process
Cash and F&O operations in the Exchange departments
with CSE. of Cash and Fund
operations.
20th March 2018 Tuesday Summarizing the daily funds Gained experience of
pay-in and pay-out under the summarizing the daily funds
settlement process based on pay-in and pay-out under the
their settlement numbers on settlement process based on
each trading day under BSE their settlement numbers on
and NSE Cash and F&O each trading day under BSE
operations with CSE and NSE Cash and F&O
operations with CSE
21st March 2018 Wednesday Preparing Reconciliation Got to know how to prepare
pay-in and pay-out under funds under Settlement
Settlement process at the end process at the end of each
of each trading day under trading day under T+2
T+2 system of trade. system of trade, from the
with CSE
22nd March 2018 Thursday Creating a copy of print of Gained experience of how to
the list of Fund Pay-in and create a copy of the print of
Pay-out of the Settlement the list of Fund Pay-in and
69
process and uploading the Pay-out of the Settlement
same in the CSE portal . process and uploading the
same in the CSE portal.
23rd March 2018 Friday Holiday due to fest Holiday due to fest
Week no. 6
Date of 1st April 2018

submission of
weekly report

26th March 2018 Study of the other types of Got to know of other types
Monday margin reports, such as the of margin reports, such as
Collateral module , Client the Collateral module ,
margin report, Levies report. Client margin report, Levies
report.
27th March 2018 Tuesday Making voucher entry on Got to know in detail how to
each trading day . prepare voucher entry.
28th March 2018 Wednesday Verifying the margin balance Got to know the method of
of each members trading with verifying the margin balance
CSE after making necessary of each members trading
voucher entry of margin with CSE after making
payments, receipts and necessary voucher entry of
adjustments at each trading margin payments, receipts
day. and adjustments at each
trading day.
29th March 2018 Thursday Got to know in detail of
Preparing position statements
preparing position
on each trading day
statements.
30th March 2018 Friday Preparing Reconciliation Got to know how to prepare
under Settlement process at funds under Settlement
the end of each trading day process at the end of each
under T+2 system of trade. trading day under T+2
system of trade, from the
with CSE
Week no. 7
70
Date of 12th April 2018
submission of
weekly report

2nd April 2018 Monday Preparing Position Got to know how Position
statements from Funds statements from Funds
Settlement report. Settlement report is prepared.
Studying the basics of Got to know in details of
Position statement which Position statement which is to
is to be prepared from the be prepared from the margin
margin reports . reports .
3rd April 2018 Tuesday Preparing Reconciliation Got to know how to prepare
statements of all the Reconciliation statements of
funds pay-in and pay-out funds under Settlement
under Settlement process process at the end of each
at the end of each trading trading day under T+2 system
day under T+2 system of of trade, from the Balance
trade. Sheets of the banks which are
used for trading with CSE
4th April 2018 Wednesday Preparing valan report at Got to know how the process
the end of each trading of matching and tallying the
day. Matching and balance of pay-in and pay-out
tallying the balance of figures is done with the bank
pay-in and pay-out statements after making
figures with the bank necessary adjustments with
statements after making excess charges, expenses, etc.
necessary adjustments
with excess charges,
expenses, etc.
5th April 2018 Thursday Study of the other types Got to know of other types of
of margin reports, such as margin reports, such as the
the Collateral module , Collateral module , Client
Client margin report, margin report, Levies report.
Levies report.
6th April 2018 Friday Making voucher entry on Got to know in detail how to
each trading day . prepare voucher entry.
Week no. 8

submission of
weekly report
71
9th April 2018 Monday Preparing valan report at Got to know how the
the end of each trading process of matching and
day. Matching and tallying the balance of pay-
tallying the balance of in and pay-out figures is
pay-in and pay-out done with the bank
figures with the bank statements after making
statements after making necessary adjustments with
necessary adjustments excess charges, expenses,
with excess charges, etc.
expenses, etc.
10th April 2018 Tuesday Preparing Reconciliation Got to know how to prepare
statements of all the Reconciliation statements
funds under Settlement of funds under Settlement
process at the end of each process at the end of each
trading day under T+2 trading day under T+2
system of trade. system of trade, from the
with CSE
11th April 2018 Wednesday Study of the management Got to know in details of
reports such as the Fast the management reports.
trade limit report in
details.
12th April 2018 Thursday Verifying the margin Got to know the method of
balance of each members verifying the margin
trading with CSE after balance of each members
making necessary trading with CSE after
voucher entry of margin making necessary voucher
payments, receipts and entry of margin payments,
adjustments at each receipts and adjustments at
trading day. each trading day.
13th April 2018 Friday Preparing position Got to know in detail of
statements on each preparing position
trading day statements.
Week no. 9
Date of 22nd April 2018

submission of
weekly report

16th April 2018
Monday
17th April 2018 Tuesday Study of the management Got to know in details of the
reports such as the Fast management reports.
72
details.
18th April 2018 Wednesday Verifying the margin Got to know the method of
balance of each members verifying the margin balance
trading with CSE after of each members trading with
making necessary voucher CSE after making necessary
entry of margin payments, voucher entry of margin
receipts and adjustments at payments, receipts and
each trading day. adjustments at each trading
day.
19th April 2018 Thursday Preparing valan report at Got to know how the process
the end of each trading of matching and tallying the
day. Matching and tallying balance of pay-in and pay-out
the balance of pay-in and figures is done with the bank
pay-out figures with the statements after making
bank statements after necessary adjustments with
making necessary excess charges, expenses, etc.
adjustments with excess
charges, expenses, etc.
20th April 2018 Friday Preparing Reconciliation Got to know how to prepare
under Settlement process funds under Settlement
at the end of each trading process at the end of each
day under T+2 system of trading day under T+2 system
trade. of trade, from the Balance
Sheets of the banks which are
used for trading with CSE
Week no. 10

submission of
weekly report

23rd April 2018 Learning how to prepare Got to know the method of
Monday NSE F&O valan report on preparing NSE F&O valan
each trading day. report on each trading day.
24th April 2018 Tuesday Learning the process of Got to know the process of
generating bank files of generating bank files of funds
funds pay in and pay out pay in and pay out from the
from the company portal company portal of BSE cash,
of BSE cash, NSE cash NSE cash and NSE F&O .
and NSE F&O .
25th April 2018 Wednesday Preparing position Got to know the process of
statements on each trading preparing position statement
73
day. in detail.
26th April 2018 Thursday Generating bank files of Got to know the process of
funds pay in and pay out generating bank files of funds
from the company portal pay in and pay out from the
of BSE cash, NSE cash company portal of BSE cash,
and NSE F&O . NSE cash and NSE F&O .
27th April 2018 Friday Study of the management Got to know in details of the
reports such as the Fast management reports.
details.
Week no. 11
Date of 7th May 2018

submission of
weekly report

30th April 2018 Learning the process of Got to know the process of
Monday generating bank files of generating bank files of
funds pay in and pay out funds pay in and pay out
from the company portal of from the company portal of
BSE cash, NSE cash and BSE cash, NSE cash and
NSE F&O . NSE F&O .
1st May 2018 Tuesday Preparing position Got to know the process of
statements on each trading preparing position statement
day. in detail.
2nd May 2018 Wednesday Learning the method of Got to know in detail about
making online payment for Direct online payment and
clearing of fund transfer, payment done by bank file
fund pay out made from attachment. Got to learn
HDFC bank to Axis bank on about NEFT and RTGS
each trading day. payment . Got to know the
method of making online
payment for clearing of
fund transfer, fund pay out
made from HDFC bank to
Axis bank on each trading
day.
3rd May 2018 Thursday Learning how to prepare Got to know the method of
NSE F&O valan report on preparing NSE F&O valan
74
each trading day. report on each trading day.
4th May 2018 Friday Got to know how to make
Making voucher entry on
voucher payment on each
each trading day
trading day.
Week no. 12
Date of 14th May 2018

submission of
weekly report

7th May 2018 Generating bank files of Got to know the process of
Monday funds pay in and pay out generating bank files of
from the company portal of funds pay in and pay out
BSE cash, NSE cash and from the company portal of
NSE F&O . BSE cash, NSE cash and
NSE F&O .
8th May 2018 Tuesday Got to know the method of
Preparing NSE F&O valan preparing NSE F&O valan
report on each trading day. report on each trading day.
9th May 2018 Wednesday Making online payment for Got to know the method of
clearing of fund transfer, making online payment for
fund pay out made from clearing of fund transfer,
HDFC bank to Axis bank fund pay out made from
on each trading day. HDFC bank to Axis bank on
each trading day.
10th May 2018 Thursday Learning the method of Got to know how to upload
Uploading the online pay the online pay out and
out and transfer made from transfer made from HDFC to
HDFC to Axis bank in the Axis bank in the company
company portal. portal.
11th May 2018 Friday Preparing position Got to know method of
statement on each trading preparing position statement
day on each trading day
Week no. 13
Date of submission of
weekly report
75
Generating bank files Got to know the
Monday of funds pay in and pay process of generating
out from the company bank files of funds pay
portal of BSE cash, in and pay out from the
NSE cash and NSE company portal of BSE
F&O . cash, NSE cash and
NSE F&O .
Tuesday Got to know the
Preparing NSE F&O method of preparing
valan report on each NSE F&O valan report
trading day. on each trading day.
Wednesday Making online payment Got to know the
for clearing of fund method of making
transfer, fund pay out online payment for
made from HDFC bank clearing of fund
to Axis bank on each transfer, fund pay out
trading day. made from HDFC bank
to Axis bank on each
trading day.
Thursday Learning the method of Got to know how to
Uploading the online upload the online pay
pay out and transfer out and transfer made
made from HDFC to from HDFC to Axis
Axis bank in the bank in the company
Friday Got to know method of
Preparing position
preparing position
statement on each
statement on each
trading day
trading day
Week no. 14
weekly report

NSE F&O .
76
trading day.
Preparing position
preparing position
statement on each
statement on each
trading day
trading day
Week no. 15
weekly report

NSE F&O .
77
trading day.
Preparing position
preparing position
statement on each
statement on each
trading day
trading day
17. BIBLIOGRAPHY
WEBSITES
https://www.cse-india.com/
https://en.wikipedia.org/wiki/Calcutta_Stock_Exchange
https://www.researchgate.net/publication/
http://www.i-scholar.in/index.php/Tajmmr/article/view/44908
http://shodhganga.inflibnet.ac.in/bitstream/10603/1113/7/07_chapter%202.pdf
www.nseindia.com
www.bseindia.com
ARTICLES & REFERENCES
 L. C. Gupta Committee Report (1997) In India, derivatives was introduced in a phased

manner after the recommendations.
 Avijith Banerjee, "A Glimpse of Portfolio Management",
78
 Bhanu Pant and Dr.Bishnoy(2001),”Testing Random Walk Hypothesis for Indian Stock
Market Indices.”
 L.C.Gupta (1992), "Stock Trading in India", Society for Capital Market Research and
Development, Delhi.
 Madhusoodan,T.P.,(1998), “Persistence in the Indian Stock Market Returns: An
application of Variance Ratio Test”.
 Debjit Chakraborty (1997) in his study attempts to establish a relationship between

major economic indicators and stock market behaviour.
79

Study of Exchange Fund Trading

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FINAL REPORT

STUDY OF EXCHANGE FUND PAY-IN AND PAY-OUT

STUDY OF EXCHANGE FUND PAY-IN AND PAY-OUT

A Report Submitted in partial fulfilment of

o AsisMaity (Company guide) – Market Operations(M.O.P.) Manager

Date of submission:15th May 2018

Mobile No: 9830024418;

IBS Campus: Kolkata 7595802166 Email Id: ankita.sinha17@ibsindia.org

SIP FINAL REPORT

TITLE OF SIP FINAL REPORT --- STUDY OF EXCHANGE FUND PAY-IN

AREA OF SIP FINAL REPORT--- MARKET OPERATIONS

The Final Report issubmitted in partial fulfilment of thePGPM Program of

o Asis Maity (Company guide) – Market Operations(M.O.P.) Manager

SL NO CONTENT PAGE NO.

1 Abstract of the project 9 - 11

2 Executive Summary 11-13

5 Survey of Existing Literature 24 – 26

8 Work done in the Organization 29 – 30

10 Analysis of Primary and Secondary Data used for 33 – 46

11 Settlement Segment 46-48

12 Future and Options Segment for trading 48 – 49

1. ABSTRACT OF THE PROJECT

The activitiesin this department involves:-

Forms for NSE F&O Segment

Forms of BSE Cash Segment

 Tracking and summarizing the daily trading process of Funds Pay-in

 Making voucher entry of the funds transfer, payment and adjustments

 Preparing Reconciliation statements of all the funds pay-in and pay-out

 Preparing Position statements on each trading day.

 Tracking of shortfall of funds from the client margin report on each

II. DESCRIPTION OF SIP

III. OBJECTIVE OF SIP

VII. LIMITATION OF THE STUDY

FACULTY GUIDE NAME: Prof. Sujoy Dhar

The Calcutta Stock Exchange Limited

7, LYONS RANGE, KOLKATA- 700 001

Some of the key offerings of the exchange are:

 Margin and Settlement departmental services

 Attractive turnover charges

 DP services CDSL & NSDL

 Pan Card service

The four main legislations governing the securities market are

(a)The SEBI Act, 1992

A briefabout these legislations are as given below:

(a.) SEBI Act, 1992

(b.)Securities Contracts (Regulation) Act, 1956

As a condition of recognition, a stockexchange complies with the requirements prescribed by the

(c.) Depositories Act, 1996

(d.) Companies Act, 1956

 Margin and Settlement departmental services

 Attractive turnover charges

 DP services CDSL & NSDL

 Pan Card service

MARKET OPERATIONS (M.O.P) DEPARTMENTin CSE is amongst the most

The core processes involved in clearing and settlement include:

PROCESS OF PAY-IN AND PAY-OUT OF FUNDS UNDER THE

As per the SEBI circulars, Pay-in is done under 10:30 am.

Pay-out is done under 2:00 pm.

BSE follows the Net balance system of Pay-in.

Say, Pay-in = Rs.44087 (Cr.)

Pay-out = Rs.13224 (Dr.)

Say, Pay-in = Rs. 44087 (Cr.)

Pay-out = Rs. 13224 (Dr.)

Previously; NSE and BSE ordered account of 8 – 10 banks.