INTRODUCTION

Stock Exchange of Mumbai is Asia's oldest and India's largest stock exchange.

The Role of Stock Exchanges

Stock exchanges have multiple roles in the economy; this may include the following

Raising capital for businesses

The Stock Exchange provides companies with the facility to raise capital for expansion through selling shares to the investing public.

Mobilizing savings for investment

When people draw their savings and invest in shares, it leads to a more rational allocation of resources because funds, which could have been consumed, or kept in Idle deposits with banks, are mobilized and redirected to promote business activity with benefits for several economic sectors such as agriculture, commerce and Industry, resulting in stronger economic growth and higher productivity levels and firms.

Facilitating company growth

Companies view acquisitions as an opportunity to expand product lines, increase distribution channels, hedge against volatility, increase its market share, or acquire

Other necessary business assets. A takeover bid or a merger agreement through the stock market is one of the simplest and most common ways for a company to grow By acquisition or fusion.

Profit sharing
Both casual and professional stock increases that may result in capital gains, will share in the wealth of profitable Businesses.

Corporate Governance
By having a wide and varied scope of owners, companies generally tend to improve On their management standards and efficiency in order to satisfy the demands of these shareholders and the more stringent rules for public corporations imposed by public stock exchanges and the government. Consequently, it is alleged that public Companies (companies that are owned by shareholders who are members of the general public and trade shares on public exchanges) tend to have better management records than privately-held companies (those companies where shares are not publicly traded, often owned by the company founders and/or their families and heirs, or otherwise by a small group of investors). However, some well documented cases are known where it is alleged that there has been considerable slippage in corporate governance on the part of some public

companies. The dotcom bubbles in the early 2000s, and the subprime mortgage crisis in 2007-08, are Classical examples of corporate mismanagement. Companies like Pets.com (2000), Enron Corporation (2001), One.Tel (2001), Sunbeam (2001), Webvan (2001), Adelphia (2002), MCI WorldCom (2002), Parmalat (2003), American International Group (2008), Lehman Brothers (2008), and Satyam Computer Services (2009) Were among the most widely scrutinized by the media.

Creating investment opportunities for small investors

As opposed to other businesses that require huge capital outlay, investing in shares is open to both the large and small stock investors because a person buys the number of shares they can afford. Therefore the Stock Exchange provides the opportunity for small investors to own shares of the same companies as large investors.

Government capital-raising for development projects

Governments at various levels may decide to borrow money in order to finance infrastructure projects such as sewage and water treatment works or housing estates by selling another category of securities known as bonds. These bonds can be raised through the Stock Exchange whereby members of the public buy them, thus loaning

money to the government. The issuance of such bonds can obviate the need to direc investors, through

dividends and stock price tly tax the citizens in

order to finance development, although by securing such bonds with the full faith and credit of the government instead of with collateral, the result is that the government must tax the citizens or otherwise raise additional funds to make any regular coupon payments and refund the principal when the bonds mature.

Barometer of the economy

At the stock exchange, share prices rise and fall depending, largely, on market forces. Share prices tend to rise or remain stable when companies and the economy in general show signs of stability and growth. An economic recession, depression, or financial crisis could eventually lead to a stock market crash. Therefore the movement of share prices and in general of the stock indexes can be an indicator of the general trend in the economy.

Capital Market is divided into two categories

1. Primary Market. 2. Secondary Market. 1. Primary Market.

Securities generally have two stages in their lifespan. The first stage is when the company initially issues the security directly from its treasury at a predetermined offering price. This is a primary market offering. It is referred to as the Initial Public Offering (IPO). In primary market, securities are offered to public for subscription for the purpose of raising capital or fund.

2. Secondary Market.
Secondary Market refers to a market where securities are traded after being initially offered to the public in the primary market and/or listed on the Stock Exchange. Majority of the trading is done in the secondary market. Secondary market comprises of equity markets and the debt markets. Secondary market is an equity trading avenue in which already existing/pre- issued securities are Traded amongst investors Secondary market could be either auction or dealer market.

COMPANY PROFILE INTRODUCTION

Stock Holding Corporation of India limited (SHCIL) was incorporated as limited company in 1986 promoted by leading financial institutions IDBI, LIC, IFCI LTD., SU-UTI, GIC, NIA, NIC, UIC and . SHCIL provides custodial service to institutional investor, mutual funds, banks and insurance companies. SHCIL has 231 offices across the country. SHCIL being one of the largest depository participants, beside the countrys largest and premier custodian. The company also provides professional clearing member services to trading members. The company has continued to forge tie-ups with several agencies for offering various third party financial products to client. The company also provides sub-broking service. The company has been authorized by government of India to as a central record keeping agency for computerization of stamp duty administration system for an initial period of five years. The latest addition to the basket of services is the national pension system (formerly known as new pension scheme) and SHCILs Empanelment with national spot exchange limited to enable its customers to hold commodities such as e-gold, esilver etc in dematerialized form. SHCILs tangible net worth stood at Rs. 4290

PRODUCT AND SERVICES (A) INSTITUTIONAL SEGMENT (B) RETAIL SEGMENT (C) DISTRIBUTION OF THIRD PART PRODUCT
(A) INSTITUTIONAL SEGMENT SHCIL is a trusted custodian for institutional client across the financial services industry. SHCIL provides for different types of financial instrument like equity, debt, CP, CD, pass through certificates etc. the custodial services include clearing and settlement, electronic and physical safe keeping, corporate action and valuation of securities. (B) RETAIL SEGMENT Depository services, sub-broking services, distribution of large number of financial products and auxiliary services are offered to client in retail segment. Broking services (BSE/NSE) Demat Depository services

E-stamping (C) DISTRIBUTIR FOR THIRD PARTY FDS & BONDS GOI BONDS INSURANCE IPOS LOAN AGAINS SECURITES MUTUAL FUND NEW PENSION SYSTEM

SUBSIDIARIES
(1) SHCIL SERVICES LTD SHCIL services Ltd (SSL) is a SEBI registered corporate stock broker and a broking arm of SHCIL .providing safe and reliable services to all its retail and institutional clients across the country. (2) SHCIL PROJECTS LTD SHCIL project ltd. (SPL) is a wholly owned subsidiary of stock Holding Corporation of India ltd and has been incorporated with the objectives: To provides end to end document management solutions. To provide information technologies in enabled services

MAJOR STOCK BROKERS IN REGION

IIFL

IIFL (India Infoline) group, comprising the holding company, India Infoline Ltd (NSE: INDIAINFO, BSE: 532636) and its subsidiaries, is one of Indias premier providers of financial services. IIFL offers advice and execution platform for the entire range of financial services covering products ranging from Equities and derivatives, Commodities, Wealth management, Asset management, Insurance, Fixed deposits, Loans, Investment Banking, Gold bonds and other small savings instruments. IIFL presence in: Equities our core offering, gives us a leading market share in both retail and institutional segments. Over a million retail customers rely on our research, as do leading FIIs and MFs that invest billions.

Private Wealth Management services cater to over 2500 families who have trusted us with close to Rs 25,000 crores ($ 5bn) of assets for advice. Investment Banking services are for corporate looking to raise capital. Our forte is Equity Capital Markets, where we have executed several marquee transactions. Credit & Finance focuses on secured mortgages and consumer loans. Our high quality loan book of over Rs. 6,200 crores ($ 1.2bn) is backed by strong capital adequacy of approximately 20%. IIFL Mutual Fund made an impressive beginning in FY12, with lowest charge Nifty ETF. Other products include Fixed Maturity Plans. Life Insurance, Pension and other Financial Products, on open architecture complete our product suite to help customers build a balanced portfolio.

IDBI CAPITAL

IDBI Capital Market Services Ltd., (IDBI Capital) is a wholly owned subsidiary of IDBI Bank Ltd and is a leading Investment Banking & Securities Company. IDBI Capital offers a full suite of products and services to Corporates, Institutional and Individual clients. The range of services include :

Investment Banking Capital Market Products Private Equity Corporate Advisory Services Mergers & Acquisitions Project Appraisals & Debt Syndication Stock Broking - Institutional & Retail Distribution of Financial Products Debt Placement and Underwriting Fund Management (Managing Clients' Assets-Pension/PF Fund Managers) Research Group

RELIGAR

Religare Securities Ltd. (RSL) is a wholly owned subsidiary of Religare Enterprises Limited (REL), an emerging markets financial services group. RSL is one of the market leading securities firms in India serving over a million clients across both Offline and Online platforms. Through its extensive footprint extending to over 500 cities, the company offers Equity, Commodity and Currency broking services as well as depository participant services. RSL is a member of the NSE, BSE, MCXSX, USE and a depository participant with NSDL and CDSL. RSL also offers TIN facilitation & PAN facility at select branches - a unique service to help an individual with PAN, TAN and TDS/TCS returns related requirements. In addition, RSL is an NSDL-appointed enrolment agency for Aadhaar UID (Unique Identification Number) and an AMFI-registered mutual fund distributor. PRODUCTS: SHARE TRADING DEPOSITORY CURRENCY FUTURES MUTUAL FUND

SHAREKHAN

Sharekhan is Indias leading online retail broking house. Launched on February 8, 2000 as an online trading portal, Sharekhan has today a pan-India presence with over 1,529 outlets serving 950,000 customers across 450 cities. It also has international presence through its branches in the UAE and Oman. Sharekhan offers services like portfolio management, trade execution in equities, futures & options, commodities, and distribution of mutual funds, insurance and structured products. These services are backed by quality investment advice from an experienced research team which offers investment and trading ideas based on fundamental and technical research respectively, market related news, statistical information on equities, commodities, mutual funds, IPOs and much more. Sharekhan is a member of the Bombay Stock Exchange, the National Stock Exchange and the countrys two leading commodity exchanges, the NCDEX and MCX. Sharekhan

is also registered as a depository participant with National Securities Depository and Central Depository Services. Sharekhan has set category leadership through pioneering initiatives like Trade Tiger, an Internet-based executable application that emulates a broker terminal besides providing information and tools relevant to day traders. Its second initiative, First Step, is targeted at empowering the first-time investors. Sharekhan has also set its global footprint through the India First initiative, a series of seminars conducted by Sharekhan to help the non-resident Indians participate and benefit from the huge investment opportunities in India. PRODUCTS SHARE TRADING COMMODITIES CURRENCY IPO (initial public offering) INSURANCE PORTFOLIO MANAGEMENT MUTUAL FUND FIXED DEPOSITE

KARVY

The flagship company, Karvy Consultants Limited was found with the vision and enterprise of a group of practicing Chartered Accountants on a modest scale in 1981 in Hyderabad, where it now has 13 branches. It initiated with just one activity and later carved roads into fields of registry and share accounting as well. From then there was no stopping at all. A decade of commitment, professional integrity and vision helped Karvy achieve a leadership position in its field. It is known to handle the largest number of issues ever in the history of the Indian stock market in a particular year. Thereafter, Karvy made inroads into a host of capital market services, corporate and retail which proved to be a sound business synergy. Today Karvy has access to millions of Indian shareholders, besides companies, banks, financial institutions and regulatory agencies. Over the past one and half decades, Karvy has involved as a veritable link between industry, finance and people. In January 1998, Karvy became the first Depository Participant in Andhra Pradesh. An ISO 9002 company, Karvys commitment to quality and retail reach has made it an integrated financial services company. A SEBI category 1registrar, so far Karvy has handled over 675 issues as Registrars to public issues, processed over 52 million applications and is servicing over 16 million investors from various locations spread over 205 cities.