A Research
On
ANALYSIS OF CAPITAL STRUCTURE OF INDIA BULLS
Submitted in the partial
fulfilment of the requirements for the Three Year Full Time Bachelor of
Commerce
(2018-2021)
Under the Guidance of : Submitted
By:
School
of commerce and management
(UNIVERSITY )
CERTIFICATE OF ORIGINALITY
We hereby declare that this
Summer Internship Project is my own work and that, to the best of my knowledge
and belief, it reproduces no material previously published or written that has
been accepted for the award of any other degree of master, except where due
acknowledgement has been made in the text.
Name of Student:
Roll no:
CERTIFICATE
This is to certify that B.Com (2018-2021 Batch) a
student of UNIVERSITY has undertaken the project on “ANALYSIS OF CAPITAL STRUCTURE OF INDIA
BULLS”. To the best of my knowledge, the survey, data collection, &
analysis work for preparing the project has been carried out by the student in
partial fulfilment of the requirements for the award of B.Com, under my
guidance and supervision.
I am satisfied with the work of Mr /Ms ………………………..
Date:
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PREFACE
Someone has rightly said
that practical knowledge is far better than classroom knowledge. During this
Research, I fully realized & I came to know about the customer preferences
on the subject of my study is “ANALYSIS
OF CAPITAL STRUCTURE OF INDIA BULLS”
In the report contains
first of the entire brief introduction about the banking services provided by
the various banks. Finally there comes the data presentation & analysis in
the end of my Research report.
EXECUTIVE SUMMARY
What a
customer expect from the company:
1.
Wide range of services under one roof
2.
24 hours support and ease to access
3.
Personalized attention
What company
offers to its customers?
1.
Extensive product range.
2.
Enhance customer experience.
3.
Personalize service through Relationship
Managers.
4.
Under stand local market dynamics.
5.
Expanding geographical and online presence.
6.
Provide a wide array of services such as
brokerage, depositary services, mutual fund and equity distribution,
commodities trading and consumer loans.
7. Offer innovative products such as Power
Indiabulls and Indiabulls Signature Client Account.
Improve customer education through in-house equity research.
9.
9. Improve customer interface and customer
experience through technology.
10.
Continually invest in upgrading of systems.
11. Improve
speed and quality of services.
12. Enhance data mining to improve risk management processes.
PROJECT PROFILE
Project Profile: -
“Capital
Structure of IndiaBulls Strategies of Indiabulls”
Objectives Of study: -
Ø To Understand and analyze the Capital Structure of IndiaBulls strategies
of Indiabulls.
Ø To understand and analyze online trading at Indiabulls.
Ø To improve the format of DSR (Daily Sales Report)
OBJECTIVES OF STUDY
Ø To
Understand and analyze the Capital Structure of IndiaBulls strategies of Indiabulls.
Ø To
understand and analyze investment at Indiabulls.
Ø To
improve the format of DSR (Daily Sales Report)
METHODOLOGY ADOPTED
The methodology adopted for the present study was focus discussion,
interview and close observation through in-house study. Since the project is
based on action research it was necessary to build rapport to collect maximum
information from the Client. Hence the research spent considerable time with
the people who reside in nearby encompassing city. The main focus was to do
with the assessing the satisfaction level of investors and explore the
possibility of more sound arrangement of disseminating outlook information
system.
It was important to collect
detailed information on various aspects for effective analysis. As “Capital
Structure of IndiaBulls today is becoming more of a battle based on information
based society companies with superior information enjoys a competitive
advantage.
Methodology Adopted
The information was
collected through person interview and interview was conducted through the mode
of questionnaire.
Analysis of Data
Data collection
The data collection was
collected through primary as well as secondary source.
PRIMARY DATA :
Primary data
was collected from 155 respondents using a schedule of question and a survey
was conducted. The tabular and graphical data was Microsoft exel.
SECONDARY DATA :
Secondary
data was collected mainly from internet ,printed journals on the capital
markets of India ,newspaper articles and books written on the Indian stock
markets.
SAMPLING:
Judgment,
non-random sampling was used. Respondents were request to help with the
schedule at their offices , homes or at the INDIABULLS INVESTMENT SOLUTION
office.
CAPITAL STRUCTURE OF INDIABULLS
WHAT IS CAPITAL
STRUCTURE OF INDIABULLS?
Capital
Structure of IndiaBulls research is the function which likes the consumers,
customers & public t the marketer through information which is used to
identify & define Capital Structure of IndiaBulls opportunities &
problems, generate, refine & evaluate Capital Structure of IndiaBulls
action; monitor Capital Structure of IndiaBulls performances & improve
understanding of Capital Structure of IndiaBulls as a process.
TYPES OF CAPITAL
STRUCTURE OF INDIABULLS RESEARCH
On the basis of fundamental objectives of the research, Capital
Structure of IndiaBulls research projects are classified into two branches:
Ø Exploratory Research
Ø Conclusive Research
EXPLORATORY
RESEARCH
It
seeks to discover new relationships. All Capital Structure of IndiaBulls
research projects start with it. This is a preliminary phase & is
absolutely essential in order to obtain a proper definition of problems at
hand. The major emphasis is on the discovery of ideas & insight.
Exploratory research looks for hypothesis in
well-established fields of study. Hypothesis usually comes from ideas developed
in previous researches or are delivered from theory. Hypothesis is tentative
answer to the question that serves as guide for most of the research projects.
CONCLUSIVE RESEARCH
Conclusive research provides information that helps
the executive so that he can make a rational decision. This study has done well
while attempting to arrive at a more clear description of an apparent problem.
Data
Collection
Primary Data: - which is collected by new research called primary
data.
q
Personal Interview
q
Close observation
q
Survey conduction
q
Group Discussion
Secondary
data: - already existing data is called secondary data. I collected them by following method –
q Internet
q Books
The
financial sector is in a process of rapid transformation. Reforms are
continuing as part of the overall structural reforms aimed at improving the
productivity and efficiency of the economy. The role of an integrated financial
infrastructure is to stimulate and sustain economic growth.
The
US$ 28 billion Indian financial sector has grown at around 15 per cent and has
displayed stability for the last several years, even when other markets in the
Asian region were facing a crisis. This stability was ensured through the
resilience that has been built into the system over time. The financial sector
has kept pace with the growing needs of corporate and other borrowers. Banks,
capital market participants and insurers have developed a wide range of
products and services to suit varied customer requirements. The Reserve Bank of
India (RBI) has successfully introduced a regime where interest rates are more
in line with market forces.
Financial
institutions have combated the reduction in interest rates and pressure on
their margins by constantly innovating and targeting attractive consumer
segments. Banks and trade financiers have also played an important role in
promoting foreign trade of the country.
Banks
The
Indian banking system has a large geographic and functional coverage. Presently
the total asset size of the Indian banking sector is US$ 270 billion while the
total deposits amount to US$ 220 billion with a branch network exceeding 66,000
branches across the country. Revenues of the banking sector have grown at 6 per
cent CAGR over the past few years to reach a size of US$ 15 billion. While
commercial banks cater to short and medium term financing requirements,
national level and state level financial institutions meet longer-term
requirements. This distinction is getting blurred with commercial banks extending
project finance. The total disbursements of the financial institutions in 2015
were US$ 14 billion.
Banking
today has transformed into a technology intensive and customer friendly model
with a focus on convenience. The sector is set to witness the emergence of
financial supermarkets in the form of universal banks providing a suite of
services from retail to corporate banking and industrial lending to investment
banking. While corporate banking is clearly the largest segment, personal
financial services is the highest growth segment.
The
recent favourable government policies for enhancing limits of foreign
investments to 49 per cent among other key initiatives have encouraged such
activity. Larger banks will be able to mobilise sufficient capital to finance
asset expansion and fund investments in technology.
Capital Market
The
Indian capital markets have witnessed a transformation over the last decade.
India is now placed among the mature markets of the world. Key progressive
initiatives in recent years include:
•
The depository and share dematerialisation systems that have enhanced the
efficiency of the transaction cycle
•
Replacing the flexible, but often exploited, forward trading mechanism with
rolling settlement, to bring about transparency
•
The infotech-driven National Stock Exchange (NSE) with a national presence (for
the benefit of investors across locations) and other initiatives to enhance the
quality of financial disclosures.
•
Corporatisation of stock exchanges.
•
The Securities and Exchange Board of India (SEBI) has effectively been
functioning as an independent regulator with statutory powers.
•
Indian capital markets have rewarded Foreign Institutional Investors (FIIs)
with attractive valuations and increasing returns.
•
The Mumbai Stock Exchange continues to be the premier exchange in the country
with an increase in market capitalisation from US$ 40 billion in 1990-1991 to
US$ 203 billion in 1999-2000. The stock exchange has about 6,000 listed
companies and an average daily volume of about a billion dollars
•
Many new instruments have been introduced in the markets, including index
futures, index options, derivatives and options and futures in select stocks.
Insurance
With
the opening of the market, foreign and private Indian players are keen to
convert untapped market potential into opportunities by providing tailor-made
products:
•
The presence of a host of new players in the sector has resulted in a shift in
approach and the launch of innovative products, services and value-added
benefits. Foreign majors have entered the country and announced joint ventures
in both life and non-life areas. Major foreign players include New York Life,
Aviva, Tokio Marine, Allianz, Standard Life, Lombard General, AIG, AMP and Sun
Life among others.
•
With competition, the erstwhile state sector companies have become aggressive
in terms of product offerings, Capital Structure of IndiaBulls and
distribution.
•
The Insurance Regulatory and Development Authority (IRDA) has played a
proactive role as a regulator and a facilitator in the sector’s development.
•
The size of the market presents immense opportunities to new players with only
20 per cent of the country’s insurable population currently insured.
•
The state sector Life Insurance Corporation (LIC), the largest life insurer in
2000, sold close to 20 million new policies with a turnover of US$ 5 billion.
•
The gross premia for the insurance sector was US$ 13 billion for 2015-02.
•
There are four public sector and nine private sector insurance companies
operating in general/non-life insurance business with a premium income of over
US$ 2.58 billion.
•
The market’s potential has been estimated to have a premium income of US$ 80
billion with a potential size of over 300 million people. The General Insurance
Corporation (GIC) (which covers the non-life sector) had a total premium income
of US$ 2 billion in 2015-02. This has the potential to reach US$ 9 billion in
the next five years.
Venture Capital
Technology
and knowledge have been and continue to drive the global economy. Given the
inherent strength by way of its human capital, technical skills, cost
competitive workforce, research and entrepreneurship, India is positioned for
rapid economic growth in a sustainable manner. To realise the potential, there
is a need for risk finance and venture capital (VC) funding to leverage
innovation, promote technology and harness knowledge based ideas.
•
The Indian venture capital sector has been active despite facing a challenging
external environment in 2015 and a competitive market scenario.
•
There were 34 VCFs and 2 Foreign VCFs registered with SEBI in March 2008.
•
According to a survey conducted by Thomson Financial and Prime Database, India
ranked as the third most active venture capital market in Asia Pacific
(excluding Japan). It recorded 115 deals in 2015 with average investment per
deal amounting to US$ 7.9 million. 57 VCFs invested US$ 908 million in 101
Indian companies during 2015.
•
Disbursements for 2008 are expected to be US$ 2 billion and are estimated to
reach US$ 10 billion by 2009.
•
There is an increased interest in India: 70 VC funds operate in India with the
total assets under management worth about US$ 6 billion.
•
The amount has grown nearly twenty fold in the past five years. Most VCs believe
that 2008-09 will be driven by a relatively stable economy and new initiatives
that will boost the e-commerce sector, particularly on-line trading and
e-banking sectors.
INDUSTRY PROFILE
A. Origin
and Development of the industry
The
Bombay Stock Exchange (BSE) is known as the oldest exchange in Asia. It traces
its history to the 1850s, when stockbrokers would gather under banyan trees in
front of Mumbai’s Town Hall. The location of these meetings changed many times,
as the number of brokers constantly increased. The group eventually moved to
Dalal Street in 1874 and in 1875 became an official organization known as ‘The
Native Share & Stock Brokers Association’. In 1956, the BSE became the
first stock exchange to be recognized by the Indian Government under the
Securities Contracts Regulation Act.
The Bombay Stock Exchange developed the BSE
Sensex in 1986, giving the BSE a means to measure overall performance of the
exchange. In 2000 the BSE used this index to open its derivatives market,
trading Sensex futures contracts. The development of Sensex options along with
equity derivatives followed in 2015 and 2008, expanding the BSE’s trading
platform.
Historically
an open-cry floor trading exchange, the Bombay Stock Exchange switched to an
electronic trading system in 1995. It took the exchange only fifty days to make
this transition.
Capital market reforms in India and the launch
of the Securities and Exchange Board of India (SEBI) accelerated the
integration of the second Indian stock exchange called the National Stock
Exchange (NSE) in 1992. After a few years of operations, the NSE has become the
largest stock exchange in India.
Three segments of the NSE trading platform
were established one after another. The Wholesale Debt Market (WDM) commenced
operations in June 1994 and the Capital Market (CM) segment was opened at the
end of 1994. Finally, the Futures and Options segment began operating in 2000.
Today the NSE takes the 14th position in the top 40 futures exchanges in the
world.
In 1996, the National Stock Exchange of India
launched S&P CNX Nifty and CNX Junior Indices that make up 100 most liquid
stocks in India. CNX Nifty is a diversified index of 50 stocks from 25
different economy sectors. The Indices are owned and managed by India Index
Services and Products Ltd (IISL) that has a consulting and licensing agreement
with Standard & Poor’s.
In
1998, the National Stock Exchange of India launched its web-site and was the
first exchange in India that started trading stock on the Internet in 2000. The
NSE has also proved its leadership in the Indian financial market by gaining
many awards such as ‘Best IT Usage Award’ by Computer Society in India (in 1996
and 1997) and CHIP Web Award by CHIP magazine (1999).
The
National Stock Exchange of India was
promoted by leading Financial institutions at the behest of the Government of
India, and was incorporated in November 1992 as a tax-paying company. In April
1993, it was recognized as a stock exchange under the Securities Contracts
(Regulation) Act, 1956. NSE commenced operations in the Wholesale Debt Market
(WDM) segment in June 1994. The Capital Market (Equities) segment of the NSE
commenced operations in November 1994, while operations in the Derivatives
segment commenced in June 2000.
Since
the early 1950s till the early 1990s, Indian policy makers had been nourishing
the goal of Socialist pattern of society. They had been following the
development planning strategy of the former Soviet Russia in a mixed economic
framework. From July 1991, in the face of an unprecedented foreign exchange
crisis, Indian economy started experiencing an IMF-World Bank dictated regime
of liberalisation.
One
aspect of this is financial liberalisation. There is a move towards
privatisation of nationalised banks – these banks are selling their shares in
the stock market. Transnational banks are encouraged to operate in the Indian
banking sector. Attempts are made to attract foreign direct investment in
different sectors. There is an increasing entry of foreign portfolio capital
due to stock market liberalisation. People are encouraged to invest in stocks
through income tax benefits and abolition of capital gains tax. There is a move
to develop a national pension fund which will be invested in different stocks to
get returns out of which pension will be provided to retired people. It is
expected that boosting up of stock market will accelerate the process of
capital accumulation and growth.
Stock
market development has been an important part of financial liberalisation in
the less developed countries (LDCs). In the pro-liberalisation circle, stock
market is assigned to play an important role in the capitalist development of
LDCs.
There
are many studies supporting the positive link between stock market development
and growth. Let us mention some of the recent studies. One important study was
undertaken by Levine and Zervos (1998). Their cross-country study found that
the Development of banks and stock markets has a positive effect on growth. In
another study Levine (2017) argued that although theory provides ambiguous
relationship between stock market liquidity and economic growth, the
cross-country data for 49 countries over the period 1976-93 suggest a strong
and positive relationship (see also Levine, 2015). Henry (2000) studied a
sample of 11 LDCs and observed that stock market liberalisations lead to
private investment boom. Recently, Bekaert et al (2019) analysed data of a
large number of countries and observed that the stock market liberalisation
‘leads to an approximate 1 % increase in annual real per capita GDP growth’.
There
are some economists who are sceptical. Long time back Keynes (1936) compared
the stock market with casino and commented: ‘when the capital development of a
country becomes the by-product of the activities of a casino, the job is likely
to be ill-done’.
Referring
to the study of World Bank (1993) Singh (1997) pointed out that stock markets
have played little role in the post-war industrialisation of Japan, Korea and
Taiwan. He argued that the recent move towards stock market liberalisation is
‘unlikely to help in achieving quicker industrialisation and faster long-term
economic growth’ in most of the LDCs.
In
this perspective this study examines the nature of relationship between stock
market and growth through capital accumulation in India.
Growth and present status of the
industry
The
ever-growing and fast-maturing 'India Market' is a lucrative business
destination for developed countries. With 7-8% of GDP growth, huge analytical,
young and English speaking work force the 'pull' for opportunities are luring.
The bandwidth of 'India Market' is enviably wide and very deep.
'Markets
in India' are well protected by legal guidelines and efficient administrators.
With a liberal and proactive government at the center the road ahead for
'Markets of India' is very rosy. 'Market India' has witnessed exponential
growth over past one and half decade. Liberal and transparent financial
policies has effected free-in-flow of FII and as a result of which 'India
Market' has grown to a colossal monster in the international market. Foreseeing
sure and substantial returns on investments (ROI) companies are pro- actively
listing on the stock market indexes. Government agencies once much hated for
red tape and bribes has shed its image. Professionalism is their new mantra.
Public Enterprises like IOC, ONGC, BHEL, NTPC, SAIL, MTNL, BPCL, HPCL and GAIL,
SBI, LIC, Hindustan Antibiotics Limited, Air India etc. to name a few, are
giving Private Indian companies a good run for their money. Private giants like
Reliance Industries Limited, Infosys, Tata, Birla Corporation, Jet Airways,
Ranbaxy, Biocon, Bajaj Auto, ICICI are breaking their own records every
financial years.
'Markets
in India' has witnessed meteorite rise of the Indian Software,
Telecommunication and Banking Industry. This has propelled growth of Urban
Indian class which, in turn has increased consumerism. Today, each and every
type of industry of 'Market India' like Infrastructure, Pharmaceutical &
Biotechnology, Banking & Insurance, Electronics, FMCG etc. has tremendous
growth potential. Retail Industry along with Agriculture & Food industry
are yet to contribute their share to the growth story of 'Market India'.
Indian
Equity Market at present is a lucrative field for the investors and investing
in Indian stocks are profitable for not only the long and medium-term
investors, but also the position traders, short-term swing traders and also
very short term intra-day traders. In terms of market capitalization, there are
over 2500 companies in the BSE chart list with the Reliance Industries Limited
at the top. The SENSEX today has rose from 1000 levels to 8000 levels providing
a profitable business to all those who had been investing in the Indian Equity
Market. There are about 22 stock exchanges in India which regulates the market
trends of different stocks. Generally the bigger companies are listed with the
NSE and the BSE, but there is the OTCEI or the Over the Counter Exchange of
India, which lists the medium and small sized companies. There is the SEBI or
the Securities and Exchange Board of India which supervises the functioning of
the stock markets in India.
Thus,
the growing financial capital markets of India being encouraged by domestic and
foreign investments is becoming a profitable business more with each day. If
all the economic parameters are unchanged Indian Equity Market will be
conducive for the growth of private equities and this will lead to an overall
improvement in the Indian economy.
Indian
Stock Market including both NSE-National Stock Exchange and the BSE-Bombay
Stock Exchange have certainly taken a tremendous beating in the past few weeks.
We are sure most of us here knew that the correction in the trading curve was
round the corner which would be healthy, and the markets would bounce back from
18k levels with the help of mutual fund investments & buying of Indian
stocks again. However the anticipation went wrong, and the US recession story
along with global and Indian commodity prices have added fuel to the global
equity market turmoil on a whole.
Future of the industry
The
stock market is booming in spite of the low agriculture output. The monsoon is
good in an overall sense but still the question remains who takes the credit?
The answer is the karma of the people. I appreciate the Indian politicians and
the industrialists who being pawns of destiny are doing things positive and
productive. India, as a country is running a very good period and the position
of planets in the transit are giving wonderful results.
Less
than one percent of population own stocks and less than 1000 individuals
control the market, the majority being the FIIS, the promoters of the company.
The credit should go to media for making stock market headlines.
The
question many people in the market ask:
Will
the bull run continue? What heights we can reach?
First
of all, mark my words Indian bourses in the future will be one of the best
investments in the world. There will be a time when it can even reach 3000
points in the nifty. India will begin one of the best dasas of the Sun, which
will work in its favour. So before 2009 Indian bourses should see an all time
high.
Now
this bull run will continue.
• There can be some correction in the BSE
sensex in the 7500 points level.
• The market will hover between the 6000-
7000 till mid august.
• There will be huge fluctuations.
Investors
and new entrants to the market to cool down a bit and come well below 7000.
In
any case if you are long terms players then step-in and buy now and forget for
another 10 years. You will make a killing in the Indian markets.
Most
of the tech companies and the main index will do well but slightly in the lower
side of expectations.
AN OVERVIEW OF FINANCIAL SERVICES
Since
1990’s, there has been an upsurge in the financial services provided by various
banks and financial institutions. Efficiency of emerging financial system
largely depends upon the quality and variety of financial; services provided by
the banking and non-banking financial companies.
The term ‘Financial Services’ can be defined
as, “activities, benefits and satisfactions, connected with sale of money, that
offer to users and customers, financial related value”.
Suppliers of financial services include the following
types of institutions:
·
Banks and financial Institutions.
·
House building societies.
·
Insurances companies.
·
Credit card issuer companies.
·
Investment trust and Mutual funds.
·
Stock exchanges.
·
Leasing companies.
·
Unit trusts.
·
Finance Companies, and so on.
Financial
service organizations render services to industrial enterprises and ultimate
consumer markets. This can be further subdivided to include Government/ public
sector/ private sector, the commercial sector, industry and international
markets. Within the financial services industry the main sectors are banks,
financial institutions and non-banking financial companies.
Characteristics
of financial services:
The
financial have the following characteristics.
Intangible:
An
organization engaged in providing financial services is largely dependent on
the feedback from the public as to effectiveness, quality and attractiveness of
the services rendered.
Direct
sale: Direct
sale is the only possible channel of distribution. There are no middlemen in
between. In order to insure that services are available at the right time and
at the right place, simultaneous production and distribution of financial
services is undertaken by the service organizations.
Heterogeneity. In order to
cater a variety financial and related needs of different customers in different
areas, financial service organization have to offer a wide range of products
and services.
Fluctuation
in demand: The
demand for certain categories of financial services e.g., life insurance; do
fluctuate significantly, according to the level of general economic activity.
This factor puts extra pressures on the roles and functions of Capital
Structure of IndiaBulls in insurance organizations.
Project customer’s interest : The responsibility of any financial
services organization to protect consumer’s interest is important not just in
banking and insurance, but also in other sectors of the financial services.
Labour
intensive. Personalized
service versus automation, in fact, is an important issue in financial
services. The financial services sector is highly Labour intensive. It leads to increase in the costs of
production and consequently affects the price of financial product.
Geographical dispersion. Financial services must have both apple
and wider application. To insure this, the service providing organizations must
have massive branch network so that international, national and local customers
enjoy benefits of convenience.
Lack
of special identity. Customers
usually approach a nearby branch of bank or financial institution, because it
is convenient to them. As the competing products offered by various service
organizations are similar, the emphasis is more on the ‘package’ then the
product. The package consists of branch location, staff, services, reputation,
advertising and new services offered from time to time.
Information
based. Financial
services industry is an information-based industry. It involves creation,
dissemination, and use of information. Information is an essential component in
the production of financial services. Cost of processing information is quite
relevant in the profitable production of financial services.
Require
quality Labour. Financial
services require huge amounts of high quality Labour to deal with information
and communication with the market. The types of Labour rage from workers
performing simple tasks to those undertaking complex analysis and negotiation
require years of training and experience.
Kinds
of financial services:
Financial
services provided by various financial institutions, commercial banks and
merchant bankers can be broadly classified into 2 categories:
(1) Asset based / Fund based services.
(2) Fee based / Advisory services.
The
important fund based services include:
·
Equipment Leasing /Finance.
·
Hire- Purchase and Consumer Credit.
·
Bill Discounting.
·
Venture capital.
·
Housing Finance.
·
Insurance Services.
·
Factoring etc.
The
fee based/ advisory services include:
·
Issue Management.
·
Portfolio Management.
·
Corporate Counseling.
·
Loan Syndication.
·
Merger and Acquisition.
·
Capital Restructuring.
·
Credit Rating.
·
Stock Broking and so on.
INSURANCE IN INDIA
The
insurance sector in India has come a full circle from being an open competitive
market to nationalization and back to a liberalized market again. Tracing the
developments in the Indian insurance sector reveals the 360-degree turn
witnessed over a period of almost two centuries.
A
brief history of the Insurance sector
The business of life insurance in India in its
existing form started in India in the year 1818 with the establishment of the
Oriental Life Insurance Company in Calcutta. Some of the important milestones
in the life insurance business in India are:
1912: The Indian
Life Assurance Companies Act enacted as the first statute to regulate the life
insurance business.
1928: The Indian
Insurance Companies Act enacted to enable the government to collect statistical
information about both life and non-life insurance businesses.
1938: Earlier
legislation consolidated and amended to by the Insurance Act with the objective
of protecting the interests of the insuring public.
1956: 245 Indian
and foreign insurers and provident societies taken over by the central
government and nationalized. LIC formed by an Act of Parliament, viz. LIC Act,
1956, with a
capital contribution of Rs. 5 crore from the Government of India.
General Insurance
The General insurance business in India, on the other
hand, can trace its roots to the Triton Insurance Company Ltd., the first
general insurance company established in the year 1850 in Calcutta by the
British. Some of the important milestones in the general insurance business in
India are:
1907: The Indian
Mercantile Insurance Ltd. set up, the first company to transact all classes of
general insurance business.
1957: General
Insurance Council, a wing of the Insurance Association of India, frames a code
of conduct for ensuring fair conduct and sound business practices.
1968: The
Insurance Act amended to regulate investments and set minimum solvency margins
and the Tariff Advisory Committee set up.
1972: The
General Insurance Business (Nationalization) Act, 1972 nationalized the general
insurance business in India with effect from 1st January
1973. 107 insurers amalgamated and grouped into four companies viz. the
National Insurance Company Ltd., the New India Assurance Company Ltd., the
Oriental Insurance Company Ltd. and the United India Insurance Company Ltd. GIC
incorporated as a company.
Insurance sector reforms
In 1993, Malhotra
Committee, headed by former Finance Secretary and RBI Governor R. N. Malhotra,
was formed to evaluate the Indian insurance industry and recommend its future
direction. The Malhotra committee was set up with the objective of
complementing the reforms initiated in the financial sector.
The reforms were aimed at “creating a more
efficient and competitive financial system suitable for the requirements of
the economy keeping in mind the structural changes currently underway and
recognizing that insurance is an important part of the overall financial system
where it was necessary to address the need for similar reforms…”
In 1994, the committee submitted the report and some
of the key recommendations included:
i) Structure
Government stake in the insurance Companies to be
brought down to 50%
Government should take over the holdings of GIC and
its subsidiaries so that these subsidiaries can act as independent corporations
All the insurance companies should be given greater
freedom to operate
ii) Competition
Private Companies with a minimum paid up capital of
Rs.1bn should be allowed
to enter the industry
No Company should deal in both Life and General
Insurance through a single entity
Foreign companies may be allowed to enter the
industry in collaboration with the domestic companies
Postal Life Insurance should be allowed to operate
in the rural market
Only one State Level Life Insurance Company should
be allowed to operate in each state
iii) Regulatory Body
The Insurance Act should be changed
An Insurance Regulatory body should be set up
Controller of Insurance (Currently a part from the
Finance Ministry) should be made independent
iv) Investments
Mandatory Investments of LIC Life Fund in government
securities to be reduced from 75% to 50%
GIC and its subsidiaries are not to hold more than
5% in any company (There current holdings to be brought down to this level over
a period of time)
v) Customer Service
LIC should pay interest on delays in payments beyond
30 days
Insurance companies must be encouraged to set up
unit linked pension plans
Computerization of operations and updating of
technology to be carried out in the insurance industry.
The
committee emphasized that in order to improve the customer services and
increase the coverage of the insurance industry should be opened up to
competition. But at the same time, the committee felt the need to exercise
caution as any failure on the part of new players could ruin the public
confidence in the industry.
The Insurance Regulatory and Development Authority
(IRDA)
Reforms in the Insurance sector were initiated with
the passage of the IRDA Bill in Parliament in December 1999. The IRDA since its
incorporation as a statutory body in April 2000 has fastidiously stuck to its
schedule of framing regulations and registering the private sector insurance
companies.
The other decisions taken simultaneously to provide
the supporting systems to the insurance sector and in particular the life
insurance companies was the launch of the IRDA’s online service for issue and
renewal of licenses to agents.
The approval of institutions for imparting training to
agents has also ensured that the insurance companies would have a trained
workforce of insurance agents in place to sell their products, which are
expected to be introduced by early next year.
Since being set up as an independent statutory body
the IRDA has put in a framework of globally compatible regulations. In the
private sector 12 life insurance and 6 general insurance companies have been
registered.
MAJOR DEVELOPMENTS DURING THE YEAR
The year 2008-09 witnessed the commercial banks
becoming aggressive players in the home loans market and a dramatic fall in
interest rates across all maturities. This fall in interest rates was driven by
the decreasing bank rate and the increased competition with in the banks
themselves and between the Banks and HFCs. There was a growing emphasis on the
adjustable rate loans due to the decreasing interest rate scenario.
In presenting the Union Budget for 2008-09 the Hon’ble
finance minister announced that National Housing Bank would launch a Mortgage
Credit Guarantee Scheme, which would be provided to all housing loans thereby
fully protecting lenders against default. Towards this end the Asian
Development Bank (ADB) approved an investment of up to US$10 million
Equivalent in November 2008 to help pioneer the first
mortgage guarantee company for India. Mortgage financing through the India
Mortgage Guarantee Company (IMGC) will help narrow the housing shortfall. The
India Mortgage Guarantee Company will improve the efficiency of housing finance
and protect mortgage lenders such as banks and housing finance
Companies in cases of borrower default.
The creation of IMGC will:
• Generate a greater volume of mortgage lending in the
Indian market
• Lower down payment requirements to as low as 5%
• Broaden the eligibility for mortgages, and
• Extend mortgage repayment periods by up to 25 years
These changes will, in turn, support capital market development by promoting
securitization and increasing home ownership. The incremental direct
disbursement market share for the years 2015-02 and 2008-09 shows that the HFCs
have lost
significant market share to the Banks.
Organized as a public limited company, IMGC is
sponsored by the National Housing Bank (NHB) of India and the Canadian Mortgage
and Housing Corporation. Other main shareholders are the International Finance
Corporation, and ADB. The total project cost is estimated at US$40 million in
paid-up capital. Finishing touches are being given to IMGC, which is expected
to formally come in to existence in September of this year. The schemes from
IMGC are expected to be launched by January ’04 With the enactment of The
Securitisation and Reconstruction of Financial Assets and Enforcement of
Security Interest Act 2008 (The Securitisation Act), banks have been empowered
to attach assets of the defaulters without intervention of lengthy and time
consuming court procedures. This would help the banks for speedier foreclosure
of home loan accounts in default. NHB is also operational zing the foreclosure
laws, which will enable the HFCs to foreclose the defaulting account
and apply to the recovery officer for sale of mortgaged property. Easier
foreclosure laws coupled with the proposed mortgage credit guarantee scheme of
the NHB are expected to release nonperforming funds of HFCs for lending.
Products and Services
The housing finance industry is getting increasingly
commodities. Competition within the sector is ensuring that in case of inadequate credit appraisal or
recovery systems. The defense strategies for managing increasing default rates
fall into three basic categories: borrower strength, collateral strength,
lender techniques and various forms of insurance.
The first line of defense against loss is making good
loan decisions; the second is managing the asset effectively, with risk sharing
entities coming last. Credit risk insurance is only activated after the lender
has done everything possible to avoid a loss on the loan.
Credit risk management in the Indian context means the
housing finance company has to develop certain in-house/local standards for
measurement of a borrowers’ ability and willingness to repay the loan for the
long term, apply those standards, measure the performance and continually make adjustments
to the standards based upon results. Operations risk management means
establishing the internal capacity to make good credit
decisions (reduce risk of loss), while at the same
time managing the assets so that costs are minimized. With the exception of
HDFC, banks and other housing finance companies have little experience in
credit and operational risk and management in the housing finance sector.
In this context the proposed Mortgage Guarantee
Company (MGC) could have a significant influence on the housing finance market
provided if the MGC is able to offer reasonable risk pricing for credit and
default risk. With MGC in place offering attractive credit risk mitigation, the
housing finance
could see many more new players offering home loans
with the market becoming more competitive. There is a lot of optimism at the
NHB on the growth prospects of the mortgage market and the expectations are
also running high on their ability to streamline mortgage legislative
environment; this could further bolster the market growth and lower the cost of
mortgages.
Asset liability mismatch increases the interest rate
and liquidity risk profile of the HFCs
and Banks. The tenure of housing loan has consistently increased from 5 years
in the past to 15-20 years at present, however the asset remains in the books
of the lender for 8-10 years. Banks have the ability to largely mitigate this
risk due to access to diversified resources and lending options. The banking
sector, every year, gets around Rs 400- 450 billion in savings and
demand/current account deposits out of which around 75-80 percent can be
considered as core float and is largely long term in nature resulting in banks
being largely protected from asset liability mismatch risk. However differences
in the maturity profiles of assets and liabilities continue to be of major
concern for HFC’s.
In future, the ability to foreclose defaulting
mortgage assets will become a key competency for profitability in housing
finance market. HFCs and Banks are increasingly looking at smaller towns for
growth. Some HFCs are expected to follow a new business model of becoming the
originator of loans, and thereafter securitising to one of the larger players.
As a result, these players will book the revenues (processing fees) upfront and
thereafter
Transfer the assets to a larger player (commercial
bank or general public) in the form of portfolio sell out or a MBS. However,
only HFCs with the ability to raise good quality assets and having adequate
distribution channels are likely to survive the competition.
MUTUAL FUNDS:
Mutual funds are
companies that pool funds from a large number of investors and invest them on
their behalf for a financial return by buying, holding and selling securities.
Funds managed by institutional investors are huge and growing rapidly,
particularly as part of the resolution of pension pressures in various parts of
the world. Global Assets under Management (AUM) rose 6 per cent to US $ 38.2
trillion in the first half of 2017, according to Cerulli Associates' latest
Global Update report. Cerulli predicts the global compound annual growth rate
for the industry to be 8 per cent between 2008 and 2009.
INDIAN
MUTUAL FUND INDUSTRY
The history of
Indian mutual fund industry can be distinctly divided into two phases - the
period before liberalization when only public sector players existed with one
dominant player Unit Trust of India and the post-liberalization era where the
industry was opened up to private players.
Unit Trust of India (UTI) was established in 1963 and launched its legendary
first scheme 'US-64' in 1964. UTI witnessed a slow and steady growth over
seventies and eighties and by end of 1988 it had an AUM of Rs. 67,000 million.
From 1987, non-UTI, public sector mutual funds were allowed and a series of
mutual fund companies were set up by public sector banks and financial
institutions. At the end of 1993, the overall AUM of mutual fund industry was
Rs. 470,004 million.
The mutual fund industry was opened up for private participation 1993 and a new
era was ushered in, paving the way for an unprecedented choice of products and
services to Indian investors. Detailed guidelines were established and the
mutual fund industry (except UTI) came under the regulation of Securities
Exchange Board of India (SEBI). Many reputed foreign mutual funds such as
Templeton, Alliance, Prudential group etc. set up operations in India. As at
the end of January 2017, there were 33 mutual funds with total assets of Rs.
1,218,050 million.
In February 2017,
the Unit Trust of India Act 1963 was repealed and UTI was broken into two
separate entities. One is the Specified Undertaking of the Unit Trust of India,
still under the control of Government of India with AUM of Rs. 298,350 million
as at the end of January 2017. The second is the UTI Mutual Fund Ltd, sponsored
by SBI, PNB, BOB and LIC. It is registered with SEBI and functions under the
Mutual Fund Regulations. As at the end of October 31, 2017, there were totally
31 funds in India, with assets under management of about Rs. 1,267,260 million.
TRENDS IN CAPITAL
STRUCTURE OF INDIABULLS OF MUTUAL FUNDS IN INDIA
The changing Capital
Structure of IndiaBulls trends in the mutual fund industry in India can be
easily linked and traced to its history of growth. The changes in Capital
Structure of IndiaBulls strategies can be characterized by 4 stages which have
evolved along with the growth and evolution of the industry.
v
Product Focus
For the first three decades of the industry, from the
setting up of UTI till the entry of private sector players, the only focus of
the Capital Structure of IndiaBulls strategy was different product offerings.
UTI and various other public sector mutual funds focused on introducing an
array of products falling in different categories. The categorization was
primarily based on two factors: one was the way the schemes were traded and the
other through different composition of debt and equity securities in the
scheme.
v
By the way Schemes were traded:
>Open-ended Schemes
>Close-ended Schemes
In an open-ended
scheme there are no limits on the total size of the corpus. Investors are
permitted to enter and exit the open-ended scheme at any point of time at a
price that is linked to the net asset value (NAV). In case of close-ended
schemes, the total size of the corpus is limited by the size of the initial
offer. The entry and exit of investors is possible by only trading on the stock
exchanges. Due to liquidity constraints posed by close-ended funds, they were
soon rendered obsolete and most of the prevailing schemes today are open-ended
schemes.
v
By Composition of Debt and Equity in the
Scheme:
> Growth Schemes
>Income Schemes
>Balanced Schemes
>Money Market Schemes
The products were also differentiated by the
composition of equity and debt in various schemes. Growth schemes invest
predominantly in equities whereas Income schemes invest only in fixed income
debt securities. Balanced schemes try to derive the benefits of both equity and
debt by investing in both. Money market schemes invest in short term liquid
securities like money market instruments so that they serve as appropriate
products for investing short term funds.
There were other
niche schemes to fulfill specific needs, such as Tax Saving Schemes, Sector
Specific Schemes, Index Schemes (which are passively invested in a benchmark
Index) and so on.In the Product Focus stage, the aim of the mutual fund
companies was to introduce a wide variety of products and due to oligopolistic
competition.
v Customer
Ownership Focus
Mutual
fund companies began to segment their target customers and position their
various products based on the target segment they proposed to address. The
target segment was broadly divided into institutional segment and individual
investor segment. The institutional segment consisted of treasury departments
of Corporate, Trusts etc and suitable products such as Institutional Income
schemes and Money Market schemes were targeted at them. The individual investor
was in turn divided into various segments such as Young Families with small or
no children, Middle-aged People saving for retirement and Retired People
looking for steady income. Suitable products such as Growth and Balanced
schemes for young families and Income schemes for retired people were marketed.
By
proper segmentation and by targeting the right product to the right customer,
Mutual Fund companies hoped to win the confidence of their customers and 'own'
them for a lifetime.
v
Specialized
Product & Service Focus
If one observes the trends in the recent past, Companies have been taking the
above customer focus further by designing and launching specialized products
and services. As awareness levels of individual investors go up, focus is on
identifying one's investment needs depending on one's financial goals, risk
taking ability and time horizon. Investors chose companies, which help them in
the above through specialized products and services.
For
example, a common financial goal is to save and invest for meeting the
education needs of children. A number of mutual funds such as Pru-ICICI Mutual
Fund and UTI Mutual Fund have launched products that are designed to serve this
specific need. A similar such need is planning for a comfortable retirement.
FACTORING:
Our discussion so far has been centered on fund-based
financial services predicated upon the fixed assets of the firm. In this
chapter, we will discuss about the fund-based financial service – factoring
predicated upon the receivables of the firm. Factoring, basically involves
transfer of the collection of receivables and the related bookkeeping functions
from the firm to a financial intermediary called the factor. In addition, the
factor often extends a line of credit against the receivables of the firm.
Thus, factoring provides the firm with a source of financing its receivables
and facilitates the process of collecting the receivables.
Factoring is of a recent origin in the Indian context.
In 1988, the Reserve Bank of India (RBI) constituted a High Powered Committee
to examine the scope for offering factoring services in the country. In 1989,
the committee submitted its report strongly recommending the case for setting
up factoring subsidiaries.
Following the announcement of the guidelines, the
State Bank of India and Canara Bank have set-up their factoring subsidiaries –
SBI Factors & Commercial Services Limited and Canbank Factors Limited.
This chapter presents the conceptual framework
underlying factoring and the salient features of factoring transactions in the
Indian context.
CONCEPT OF
FACTORING:
We can define factoring as the sale of book debts by a
firm (referred to, in this chapter, as the ‘client’) to a financial
intermediary called the factor on the understanding that the factor will pay
for the debts as and when they are collected or on a guaranteed payment date.
Usually the factor makes a part payment
immediately after the debts are purchased thereby
providing immediate liquidity to the client. Figure 12.1 depicts the process of
factoring.
Process of
Factoring
1. Client concludes a credit sale with the customer.
2. Client sells the customer’s account to the factor
and notifies the customer.
3. Factor makes a part payment (advance) against the
account purchased after adjusting for
commission and interest on the advance.
4. Factor maintains the customer’s account and follows
up for payment.
5. Customer remits the amount due to the factor.
6. Factor makes the final payment to the client when
the account is collected or on a guaranteed payment date.
FORMS OF FACTORING
Depending upon the
features built into the factoring transaction, there can be different forms of
factoring arrangements. We shall discuss about the following forms:
a. Recourse factoring
b. Non-recourse factoring
c. Maturity factoring
d. Advance factoring
e. Invoice discounting
f.
Cross-border factoring.
v Recourse
Factoring
The factor
purchases the receivables on the condition that the loss arising on account of
irrecoverable receivables will be borne by the client. For example, assume that
a factor has advanced an amount of Rs.2.4 lakh against a receivable of Rs.3
lakh which turns out to be irrecoverable. Under a recourse factoring
arrangement, the factor can recover the sum of Rs.2.4 lakh from the client. Put
differently, under a recourse factoring arrangement, the factor has recourse to
the client if the debt purchased turns out to be irrecoverable.
v
Non-Recourse Factoring
As the name implies, the factor has no recourse to the
client if the debt purchased turns out to be irrecoverable. Since the factor
bears the losses arising on account of irrecoverable debts (receivables), the
factor charges a higher commission (the additional commission is called the del
credere commission). Also, the factor participates actively in the
credit-granting process and decides/approves the credit lines extended to the
customers of the client. While non-recourse factoring is the most common form
of factoring in countries like the USA and the UK, in the Indian context,
factoring is done with recourse to the client.
v
Maturity Factoring
Under
this type of factoring arrangement, the factor does not make any advance
payment. The factor pays the client either on a guaranteed payment date or on
the date of collection. The guaranteed payment date is usually fixed taking
into account the previous ledger experience of the client and a period for slow
collection after the due date of the invoice.
v
Advance Factoring
Under this
arrangement, the factor provides an advance varying between 75-85 percent of
the value of receivables factored. The balance is paid upon collection or on
the guaranteed payment date. As we have already seen, the factor charges
interest from the date on which advance payment is made to the date of actual
collection or the guaranteed payment date. The rate of interest is usually
determined depending upon the prevailing short-term rate of interest; and the
client’s financial standing and volume of turnover.
v Invoice Discounting
Strictly speaking,
this is not a form of factoring because it does not carry the service elements
of factoring. Under this arrangement, the factor provides a prepayment to the
client against the purchase of book debts and charges interest for the period
spanning the date of pre-payment to the date of collection. The sales ledger
administration and collection are carried out by the client. The client
provides the factor with periodical reports on the value of unpaid invoices and
the ageing schedule of debts. This facility is usually kept confidential i.e.,
the customers (whose debts have been purchased by the factor) are not informed
of the arrangement. Therefore, this arrangement is also referred as
‘Confidential Factoring’.
v Cross-border Factoring
The mechanics of Cross-border Factoring (also referred
to as an international factoring or export factoring) is similar to domestic
factoring except that there are usually four parties to the transaction –
exporter, export factor, import factor and importer. (See Figure 12.2) Under
this system of factoring referred to as the two factor system of factoring, the
exporter (the client) enters into a factoring agreement with the export factor
domiciled in his country and assigns to him export receivables as and when they
arise. The payment against the factored debts are made exactly in the same way
as under a domestic factoring facility. If the sale value is denominated in the
currency of the importer’s country, the factor usually covers the exchange risk
associated with the remittances. The export factor enters into an arrangement
with a factor based in the country where the importer resides (import factor)
and contracts out the tasks of credit checking, sales ledgering and collection
for an agreed fee. The debt is usually not assigned to the import factor.
Figure
12.2: Cross-border Factoring with Two Factors
Factori
FUNCTIONS
OF A FACTOR
From
our discussion of the different forms of factoring we find that a factor offers
one or more of the following services:
a.
Collection
b.
Sales-ledger administration
c.
Credit protection
d.
Short-term funding
e.
Advisory services.
This
section provides a brief description of each of these services.
Factoring
FACTORING IN THE INDIAN CONTEXT
Factoring: A New Concept
Concept
of factoring is new in India. RBI permitted banks to engage in the factoring
business as departmental service and through their subsidiaries. Previously
Vaghul committee and the Kalyansundaram committee recommended for a strong
factoring market. Till now factoring activity is regulated by Indian Contract
Act, Sale of Goods Act and the Transfer of Property Act. Factoring generates
necessary cash flows against the receivables to the organization. Main obstacle
for factoring is that banks are reluctant for providing factoring services.
They also consider factoring institutions as their competitors. As RBI makes it
mandatory for bank’s clients to get a LOD (Letters of Disclaimer) from the bank
before any proceedings for factoring, banks resistance create a big obstacles
to factoring agencies. With the progress of the JIT inventory concept, loan
against inventory will be replaced by factoring. Till now factoring with
recourse optionare practiced rather than export factoring. In 1998, only seven
companies provided factoring service and the potentiality of the market is
estimated at Rs.4,000 crore in the nineties.
As indicated before, the committee constituted by the
Reserve Bank of India under the chairmanship of CS Kalyanasundaram
(Kalaynasundaram Committee hereafter) has recommended promotion of
factoring organizations in the country
and identified the small-scale sector and the export sector as the primary
target markets (See Appendix 12A). Acting upon the recommendations of the
committee, the Reserve Bank of India issued guidelines permitting commercial
banks to start separate subsidiaries for rendering factoring services.
PROFILE FOR FACTORING ORGANISATION IN INDIA
|
Company |
Promoters |
Paid-up capital (Rs. In lakhs) |
Service offered |
|
SBI factors and commercial service ltd. |
a)
State Banks of India b)
State bank of Sourashtra c)
Union Bank of India d)
SIDBI |
2500 |
Resource factoring |
Canbank factor Ltd.
|
a)
Canera Bank
b)
Andhra bank c)
SIDBI |
1000 |
Resource factoring |
Non Banking Financial
Companies
Non-Banking Financial Companies (NBFCs)
are a set of financial service companies that are quite unique to India in
terms of their size and the range of services provided by them. The services
provided by NBFCs range from retail service such as loans, leasing and hire
purchase financing, brokerage and distribution services; to bill discounting
and syndication services to corporate customers. Till early 1990s, when NBFCs
were at their peak, most retail customers would approach an NBFC rather than a
bank for all their financial service needs. However, since its peak in the
mid-1990s when public deposits held by NBFCs increased to 9.5 per cent of bank
deposits, this sector saw a steep decline. Aggregate public deposits of NBFCs
as a percentage of bank deposits came down to 1.5 per cent by March 2017 .
Till 1990s,
NBFCs constituted a significant part of the Indian financial services industry
and complemented the services provided by a bank. They were a heterogeneous
group of intermediaries of varying size and provided a range of services. They
were characterized by their ability to provide niche financial services and due
to their relative organizational flexibility; they were often able to provide
tailor-made services relatively faster than banks and financial institutions.
This enabled them to build up a wide-ranging clientele from small borrowers to
establish corporate.
Based
on the principal activity carried out by the company, NBFCs were classified by
RBI under five main categories - Equipment leasing company (EL), Hire Purchase
finance company (HP), Investment company (IC), Loan company (LC) and Residuary
non-banking company (RNBCs - large companies not coming under any one
particular category). NBFCs achieved their zenith in early 1990s. Their
accelerated expansion in 90s was driven by the opportunities created by the
process of financial liberalization. However, their rapid growth resulted in
unhealthy practices and certain disconcerting developments. In response to
this, RBI considerably tightened its supervisory and regulatory framework over
NBFCs in 1998. Some of the new measures of Hire purchase finance, mostly
consisting of retail funding of cars, commercial vehicles and consumer durables
were the primary activity, followed by loans and inter-corporate deposits.
COMPANY
PROFILE
Indiabulls
Financial Services Limited was incorporated on January 10, 2000 as M/s Orbis Infotech Private Limited at New Delhi under the Companies
Act, 1956 with Registration No. 55 - 103183. The name of Company was changed to
M/s. Indiabulls Financial Services
Private Limited on March 16, 2015 due to change in the main objects of the
Company from Infotech business to Investment & Financial Services business.
It became a Public Limited Company on February 27, 2018 and the name of Company
was changed to M/s. Indiabulls Financial
Services Limited.
And now this company has achieved milestone by
voted as The Youngest Company of the year in
ET500
Indiabulls Financial
Services Ltd is a public company and listed on the National
Stock Exchange (NSE), Bombay Stock Exchange (BSE), Luxembourg Stock Exchange
and London Stock Exchange. The market capitalization of
Indiabulls is approx. US $ 800 million, and the consolidated
net worth of the company is approx US $ 400 million. Indiabulls and its group companies have attracted US $ 300 million
of equity capital in Foreign Direct Investment (FDI) since March 2000.
Indiabulls ranks at 82nd
position in the list of most valuable companies in India.
Indiabulls is promoted by three engineers from the Indian Institute of
Technology (IIT) Delhi. Foreign Institutional Investors (FIIs) and foreign
funds hold over 60 percent shareholding of Indiabulls. Some of the large
shareholders of Indiabulls are the largest financial institutions of the world
such as Fidelity Funds, Capital International, Goldman Sachs, Merrill Lynch,
Lloyd George and Farallon Capital. There are approximately over 40,000
shareholders of the company.
Indiabulls Financial Services is a retail financial services company providing
a diverse array of financial products and services, through its nationwide
network of over 300 Indiabulls offices, and services over 4,50,000
clients spread across 110 cities in India.
Indiabulls, along with its subsidiary companies, offer consumer loans,
brokerage and depository services, personal loans, home loans and other
financial products and services to the retail markets.
Indiabulls, which has a
workforce of over 10,000 full time employees, reported US $ 60
million in Profit Before Tax and US $ 45 million in Net Profit for the first
nine months of the current financial year.
PHILOSOPHY
Indiabulls has created a
unique organization that is designed for you – the Smart Investor –.
it passionately believe in the Smart Investor who wants to make his own
educated investment choices and demands world class access to a full range of
services and products ranging from Equities to Insurance, combined with the
highest level of integrity, service and professionalism.
Indiabulls is a full service investment firm offering clients access to a
tremendous range of financial services from 135 locations across 95 cities. We
have a strong team of over 1000 Client Relationship Managers focused on
serving customers unique needs. Our world class infrastructure, built with tens
of crores of investment, provides our clients with real-time service,
multi-channel & 24/7 access to all information and products. As we've
expanded and developed to serve the needs of all kinds of investors, we've been
guided by one underlying philosophy:
You come
first.
We are proud to introduce to you Indiabulls Professional NetworkTM
that offers real-time prices, equity analysis, detailed data and news,
intelligent analytics, and electronic trading capabilities, right at your
finger-tips. This powerful technology is complemented by our knowledgeable and
customer focussed Relationship Managers who are available to help with your
financial planning and investment needs.
FOUNDERS
The fast paced growth,
diversification and consolidation of the Group have been possible due to the
vision and leadership of the co-founders of Indiabulls.
Sameer Gehlaut is the
Chairman, CEO and Whole Time Director of Indiabulls. Sameer is an engineer from
IIT, Delhi (1995) and has worked internationally with Halliburton
in its international services business in 1995. He has utilized his experience
with the international best practices and professional work culture at
Halliburton to lead Indiabulls successfully.
Rajiv Rattan is the
President, CFO and Whole Time Director of Indiabulls. Rajiv is an engineer from
IIT, Delhi (1994) and has rich experience in the oil industry,
having worked extensively across the globe in highly responsible assignments
with Schlumberger. Rajiv has managed remote exploration
projects providing evaluation services for different clients in India as well
as abroad.
Saurabh Mittal is a Director
at Indiabulls. Declared the best graduating student in IIT, Delhi in
(1995), Saurabh was also one of the engineers selected by
Schlumberger to work for its international services business in 1995
and gained experience of working in various global locations. He graduated as a
Baker Scholar with an MBA from the Harvard Business School. He
has also developed in-depth understanding of international financial markets.
INSURANCE
“When
you hear the word Insurance, the words boring and mundane probably enter your
mind.”
When it comes to business, you are right up there. Taking
all those split second decisions, avoiding pitfalls and making sure your money
works hard for you. But don't you think the business of life requires just as
much attention and probably even more. That's we are proud to bring to you an
offer exclusively for you. As a part of our endeavor to provide you with
world-class products and services, Indiabulls gives you the opportunity to
avail of the whole range of Birla Sunlife Insurance Products through the
Indiabulls network of 1000 Relationship Managers over 135 locations nationwide.
Which means you can take care of life, while taking care of business.
As always, we put your needs first.
LOANS
Personal Loan: -
“No questions.
Only Loans.”
No matter where you work, or how much you
earn, we offer you the shortest route to a loan with minimum paperwork and
procedures. With Indiabulls Fast
Loans, you can avail of easy loans for a minimum of Rs.10,000 to a
maximum amount of Rs.1,00,000.
·
Flexible loan tenor of up to 4 years (i.e. 1
month to 48 months).
·
Loans available from a minimum of Rs.10,000 up
to a maximum of Rs.1,00,000.
·
Easy monthly repayment through equated monthly
installments (EMI).
·
Easy documentation and quick disbursal
Home Loan: -
Indiabulls has commenced
lending of Mortgage Loans to prospective customers under the flagship of
Indiabulls Housing Finance Ltd. Here we enable home-seekers to access finance
to buy, build, rent or improve their homes. We also provide plot loans, Loan
against Residential, Commercial and Rental Property, thereby enabling the
borrower to leverage the property owned to fund any legitimate needs be it
Business Expansion, Child's Education, Child's Marriage or for holiday abroad.
REAL ESTATE
Through its
group companies, Indiabulls is also engaged in real
estate development. The group companies recently made winning bids for
the Jupiter and Elphinstone Mills in Mumbai in an auction carried out by the
National Textiles Corporation (NTC), a Government of India undertaking. The
company will now develop modern commercial complexes in the heart of Mumbai -
the financial capital of India. Indiabulls' foreign partner, Farallon Capital
made the first real estate related FDI investment in Indiabulls Properties Pvt.
Ltd to buy Jupiter Mills immediately after the new FDI guidelines were
introduced by the Government of India for real estate development in March 2019.
Indiabulls Resources Ltd
Indiabulls Resources Ltd, a 100 per cent
subsidiary of Indiabulls Financial Services Ltd., has been established with the
objective of evolving as an independent oil company over time. Our immediate
short-term goal is to partner with oil companies who are willing to come to
India and bid in the current NELP-6 round. We are ready to invest along with
such companies for exploration blocks of mutual interest.
Indiabulls
has grown its business by over 100% CAGR since inception. The growth of
Indiabulls in a highly competitive market is a testimony of its quality
services.
Highlights of Financial
Condition of Indiabulls
Indiabulls
reports fiscal 2020 revenues of Rs. 613.15 crores, YoY growth of 264%, and
profits of Rs 253.36 crores, YoY growth of 347%
New
Delhi, India - April 24, 2020
Highlights
Consolidated results for the quarter ended March 31, 2020
•
Income was Rs. 195.5 crore for the fourth quarter ended March 31, 2020; YoY
growth was 179%
•
Net profit after tax was Rs. 80.38 crore for the fourth quarter ended March 31,
2020; YoY growth was 236%
•
Earnings per share increased to Rs. 4.63 from Rs. 2.02 for the corresponding
quarter in the previous year; YoY growth was 129%
Consolidated
results for the year ended March 31, 2020.
•
Income was Rs. 613.15 crore for the year ended March 31, 2020; YoY growth was
264%.
•
Net profit after tax was Rs. 253.36 crore for the year ended March 31, 2020;
YoY growth was 347%.
•
Earnings per share increased to Rs. 15.61 from Rs. 5.10 in the previous year;
YoY growth was 206%.
Others
•
Total customers in the Securities Business increased to over 236,000 customers
•
10,069 employees spread over 306 offices in 113 cities as on March 31, 2020 for
Indiabulls
Financial
Services Limited and its group companies
•
On behalf of Mr. L N Mittal, LNMIIVL paid Rs 89.16 crores to buy 8.2%
stake of Indiabulls
Credit
Services Limited valuing the business at over Rs. 1,100 crores.
BOARD OF DIRECTORS
|
S.No |
Name |
Designation |
|
1 |
Mr.Sameer Gehlaut |
Chairman & Wholetime Director |
|
2 |
Mr.Shamsher Singh |
Director |
|
3 |
Mr.Aishwarya Katoch |
Director |
|
4 |
Mr.Kartar Singh Gulia |
Director |
|
5 |
Mr.Gagan Banga |
Director |
|
6 |
Mr.Saurabh K Mittal |
Director |
|
7 |
Mr.Karan Singh |
Director |
|
8 |
Mr.Rajiv Rattan |
Whole Time Director |
History of
Capital Market
The capital Market
consists of two market.
1. Primary Market
2. Secondary Market
Primary market
Primary market deals with
the issue if new instrument by the corporate sector such as equity share,
preference share and debt instrument. Central and State govts., Various public
industrial units (PSUs), statutory and authority such as state electricity boards
and port trusts also issue bonds/debt instruments. Offer for subscription to
securities is made to investing community.
There are several majors
players in primary market. These include the merchant bankers, mutual funds,
financial institutions, foreign institutional investors (FIIs) and individual
investors.
Secondary
market
The secondary market or
stock exchange is a market for trading and settlement of securities that have
already been issued. The investors are holding securities sell securities
through registered brokers/sub brokers of the stock exchange. Investors who are
desirous of buying securities purchase securities through registered
brokers/sub brokers of the exchange. It may have a physical location like a
stock exchange or a trading floor. Since 1995, trading in securities is screen
based and Internet based trading has also made an appearance in India.
In secondary
market there are the stock exchanges, stock brokers (who are members of the stock
exchanges) , the mutual funds , financial institutions, foreign institutional
investors (FIIs), and individual Investors
Securities and
Exchange Board of India (SEBI)
With the objective of
improving market efficiency, enhancing transparency, checking unfair trade
practice and bringing the Indian market up to international slandered, a
package of reforms consisting of measures to liberalise, regulate and develop
the securities market was introduced during the 1990s. This has changed corporate securities market beyond
recognition in this decade. The practice of allocation of resources among
different competing entities as well as its terms by a central authority was
discontinued. The secondary market overcome the geographical barriers by moving
to screen based trading
National Stock
Exchange (NSE)
The National Stock
Exchange commenced its operational in 1994
as a first step in reforming the securities market through improve technology
and introduction of best practices in management. It started with the concept
of an independent governing body without any broker representation thus
ensuring that the operators’ interests were not allowed to dominate the
governance of the exchange.
Depository
System
Before the NSE was setup,
securities (Shares) were in physical form. The transfer was by physical
movement of papers. There had to be a physical delivery of securities a process
fraught with delays and resultant risk. The second aspect of the settlement
relates to transfer of shares in favour of the purchaser by the company. The
system of transfer of ownership was grossly inefficient as every transfer
involves physical movement of paper securities to the issuer for registration,
with the change of ownership being evidenced by an endorsement on the security
certificate in many cases the process of transfer would much longer than the
two months stipulated in the Company Act, and a significance proportion of
transaction would end up as bad delivery due to faulty compliance of paper
work, Theft, forgery, mutilation of certificates of a security. All this added
to cost and delays in settlement, restricted liquidity and made investors
grievance redressal time consuming and, at time, intractable.
To obviate these problems,
the Depositories Act, 1996 was
passed. It provide for the establishment of depositories in securities with the
objective of ensuring free transferability of securities with speed, accuracy
and security. It does so by
1. Making securities of
public limited companies freely transferable, subject to certain exception.
2. Dematerialising the securities in the
depository mode.
3. Providing for maintenance
of ownership records in a book entry form.
Two depositories, viz., NSDL and CDSL, have come up to provide instantaneous electronic transfer of
securities.
The NSE introduce screen
based trading system (SBTS) where a member can punch in to the computer the
quantities of shares and the prices at which he wants to transact. The
transaction execute as soon as quote punched by a trading member finds a
matching sale or buys quote from counter party. SBTS electronically matches the
buyer and seller in an order driven system or finds the customer the best price
available in a quote driven system, and hence cuts down on time, cost and risk
of errors as well as on the chances of fraud.
Trade
Transaction
An Investor can get in two
types of trade transaction i.e.
1. Intraday Trade
2. Delivery Trade
Intraday
trade: -
In this type of trading an
investor can buy any share during the trading session but he has to sell this
share before 3 P.M. otherwise the software of Indiabulls will sell it
automatically.
Delivery
Trade: -
In delivery Trade Investor
buy any share during the trading session but he is no more bound sell it on
same day. It is basically for investment purpose he can sell his share whenever
he wants.
ORGANIZATION STRUCTURE OF INDIABULLS OFFICES
Branch Manager
Senior Manager Sales
Manager Sales
Senior Relationship Manager Business Development
Manager
(SRM)
(BDM)
Relationship
Manager
Business Development Executive
(RM) (BDE)
Associate Relationship Manager
(ARM)
Dealer
INDIABULLS OFFICES
Corporate Office:
“Indiabulls House”
448-451, Udyog Vihar,
Phase-V, Gurgaon – 122015
Client Helpline: (0124) 45724444
Email: helpdesk@indiabulls.com
Registered Office:
F-60, Malhotra Building,
IInd Floor, Connaught Place, New Delhi –
110001
Tel: (011) 41523700
Website: www.indiabulls.com
Branch Office:
1-A, Hamilton House, First Floor,
Connaught Place, New Delhi – 110001
Tel: (011) 30476100
OFFERINGS
Indiabulls offers two products:
-
“Get More At Indiabulls”
1.
NIB - Normal Indiabulls
2.
PIB - Power Indiabulls
NIB – Normal
Indiabulls
“A multitude of ways to access your
account either through priority access to Relationship Manager over phone OR
online access to your Account & Research Tools.”
Enjoy priority telephone access that gives you direct access to your
Relationship Manager.
Stay on the top of your investments with a snapshot of your
Account Statements. Get access to Portfolio statement and access to digital
contract notes.
PIB
– Power Indiabulls
“Trading just got faster”
It is advance trading
software which great deals of versatility even at low band width assuring speed
and total functionality ensuring speed and total functioning of a broker’s
terminal. An active trader market execute traders and get confirmation of the some
computers terminal need to be 128 Bits Encrypted (Supported by explorer version
5 and above).
Regardless of how the market
is performing or which way the economic winds are blowing as traders, are
researching, charting, crafting a strategy, buying and selling. Investors are
getting in, getting out and moving on to the next trade. Choose from a
comprehensive offering of accounts, platform and product. Customize technology
and services to support the way of work.
Choose from a broad spectrum of
sophisticated trading tools using a fast desktop Trading Software. - Trading just got faster.
Features of PIB:
·
Live Streaming Quotes
·
Fast Order Entry
·
Tic by Tic Live Charts
·
Technical Analysis
·
Live News and Alerts
Extensive Reports for Real-time Accounting
Indiabulls: “A Cut Above The Rest”
Service Industry is base on differentiation of the product
and service Indiabulls is different from its competitors because of following
reason
ü Internal Capital
Structure of IndiaBulls
It is to train and motivate employees to serve customers.
The selection, training and motivation of the employees will make a huge difference
in customer satisfaction.
In Indiabulls the employees are well trained and motivated to work and
they work dedicatedly. Because Indiabulls know that employee’s attitude will
promote stronger customer loyalty. Indiabulls designed a sound training
programme and support and rewards for good performance. They can use Internet,
internal newsletters, daily remainders, and employee roundtables to reinforce
customer-centered attitude.
ü External Capital Structure of IndiaBulls
Describe
the normal work to prepare, price, distribute and promote the service to
customers. Its is mainly for customers to provide better service for this
purpose Indiabulls is providing following unique services to his customers: -
1.
Relationship Managers
who are dedicated to supporting
customers trading and investing needs. They always keep in touch with client
and they give various tips to client by which he can invest in good stocks.
2.
Dealers everyday give confirmations of the client’s whole day trading
in the evening after signing out from the Market.
Company
Internal External
Capital Structure of
IndiaBulls Capital Structure of IndiaBulls
|
Employees Interactive
Capital Structure of IndiaBulls Customers
ü
Indiabulls is providing Funding for
trading to its client on nominal rates of interest i.e. on 18% limit of funding
is as follow
Delivery-
for delivery trading Indiabulls providing 2 times funding
Intraday- for this
type of trading Indiabulls is proving 8 times funding without charging
any interest.
ü
Indiabulls Equity Analysis Indiabulls provide an analysis of
more than 540 companies it include current and future planning of various
companies but this service is optional for client.
Building and maintaining customer’s ideal portfolio demands objective, dependable
information. Indiabulls Equity Analysis helps satisfy that need by rating
stocks based on carefully selected, fact-based measures. And because we're not
focused on investment banking, Indiabulls don't have the same conflicts of
interest as traditional brokerage firms. This objectivity is an important difference in our ratings.
The
Indiabulls Equity Analysis model attempts to gauge investor expectations, since
stock prices tend to move in the same direction as changes in investor
expectations.
- Stocks
with low and potentially improving investor expectations tend to receive A
or B ratings
- Stocks
with high and potentially falling investor expectations tend to receive D
or E ratings
Over the next 12 months, A-rated stocks have a return outlook
of strongly outperforming the market while E-rated stocks have a return outlook
of strongly under performing the market. Find out more about using Indiabulls Equity Analysis
ü
In today’s scenario
when all services are going to be online or in electronic form Indiabulls is
creating awareness of online trading that client can trade from anywhere
from the World.
ü
Risk management team of Indiabulls taking care of client
portfolio and whenever the value of his portfolio will go decrease by 30%
client always informed by his Relationship Manager.
ü
Indiabulls is providing a software called “Power
Indiabulls” as describe above if a client have his own PC and Internet then
he can trade from his home or office.
ü
In Indiabulls possibility of auction is very less
because of large client base, so he can sell shares anytime.
ü Depository
Services: -
“Whatever your individual goals, we can help.”
Indiabulls is a
depository participant with the National Securities Depository Limited (NSDL)
and Central Depository Services (India) Limited (CDSL) for trading and
settlement of dematerialized shares. Indiabulls performs clearing services for
all securities transactions through its accounts. Company offer depository
services to create a seamless transaction platform – execute trades through
Indiabulls Securities and settle these transactions through the Indiabulls
Depository Services. Indiabulls Depository Services is part of our value
added services for its clients that create multiple interfaces with the
client and provide for a solution that takes care of all client needs.
ü NRI Account
You can now enjoy the convenience of hassle
free and fast way of trading in the Indian Equity Markets through Indiabulls
NRI Investor Services. Our unique integrated service creates one window for all
your trading, depository and banking needs. You can buy and sell on your
computer using our NRI Trading Account Services, which have been seamlessly
integrated with your Indiabulls Depository Account and with the HDFC NRE/NRO
Bank Account.
We provide full access to the following
services to help you trade seamlessly:
- Indiabulls NRI Trading Account - Provides access to
comprehensive trading tools for independent NRI investors
- Indiabulls Depository Services - Integrated services
for seamless delivery
- HDFC Bank Account - NRE/NRO Accounts with built in
tax management solutions and facility to source all regulatory approvals
- Indiabulls Equity Analysis - Premium
Research on 540+ companies updated daily.
How can
Indiabulls manage its services:
- Gap between customer
expectation and management perception: Management does not
always correctly perceive what customer want. For intense in Inidabulls a
customer is expecting that he can buy share after deposited require check
but he has to wait for 3 days and same happen with demand draft.
- Gap between management
perception and service quality: Management might correctly perceive customer’s want but not set a
performance standard. Like a form of an account should passed away from
the all stages of processing but it mostly takes time of 10 days.
- Gap between service quality
specification and service quality: Personnel might be poorly
trained, or incapable or unwilling to meet the standard or they may be
held to conflicting standards, such as taking time to listen to customer
and serving them fast. That is happen in indiabulls.
- Gap between service
delivery and external communication: Customers’ expectations are
affected by statement made by company representative and ads.
- Gap between perceived
service and expected service: This gap occurs when the customer
misperceives the service quality. A client may be perceived wrongly like
in infrastructure of Indiabulls but this will solved in new office of
Indiabulls.
PROMOTION
Indiabulls
is turning to Capital Structure of IndiaBulls public relations to directly
support corporate and product promotion and image making. Because public is any
group that has an actual or potential interest in or impact on a company’s
ability to achieve its objective. Indiabulls has its team relationship manager
that monitors the attitudes of organization’s publics and distributes
information and communications to built goodwill. They are performing following
five functions:
1. Press Relations: - They present news about
the organization in the most positive light.
2. Product Publicity: - All Relationship managers
are sponsoring efforts to publicize product offerings by Indiabulls i.e. NIB
and PIB.
3. Corporate Communication: - They promoting
understanding of the organization through internal and external communications.
4. Counseling: - All RMs advise management
about public issues and company positions and image during good and crises.
Indiabulls is promoting its product by
advertising by following medium:
·
Electronic media: - By advertise its
product via Television
·
Print media: - By various Pam
plates, brochures, etc.
Canopy: - Indiabulls is now
promoting its product by canopies. By Canopies company can know the potential
area of the cities and segment of population to whom it should target.
INFRASTRUCTURE
Indiabulls also try to
demonstrate its service quality through Physical Evidence and
presentation. Because if we talk about online security trading then we have to
say that physical evidence will important for the company in Indiabulls office
all client come everyday and they trade but with the time passing Indiabulls is
growing and number of client increasing day by day so space of office is not
sufficient for both staff members and clients also. To overcome this problem
Indiabulls will shift in new office with and of July.
FORMATING OF DAILY SALES REPORT (DSR): -
I have been assigned a work to improve format of daily
sales report (DSR) which used by Business Development Executive (BDE). So I had
made some changes in it to see new format please double click on
following format
Some new columns
introduced by me in that format these are as following:
1. Occupation: By this column we can
know to which segment our BDE is targeting whether he is using his energy in
the right direction or he is wasting his energy.
2. Existing A/C if any: If prospect have already
an account in other company then we can find out status of competitor.
3. View / suggestions: By this column BDE can
ask from prospect / client his view or suggestions regarding service of
Indiabulls it may complains of any present client of company.
4. Competitor’s Activity: BDE can write the
activity of competitor’s like any company may opening account without charging
any fee and because of this our BDE is unable to get his target
Next day contact: Here BDE can mention follow up which will done by him
next day so that he cant bluff and make fool of any one or any of his senior
can do cross checking of his call.
Data analysis
AGE
[ ] 19-28 [ ] 29-38 [ ] 39-48
[ ] 49 and over
OCCUPATION
[ ] Government [ ] Private [ ] Self employed [
] Others
INCOME
CATEGORY (gross salary per annum Rs. Lacks)
[ ] < 1.5 [ ] 1.5 – 3.0 [ ] >3.0-5.0
[ ] >5
Do you have a life insurance policy?
[
] Yes [ ] No
In which insurance sector you have more faith?
[ ] Government (LIC) [ ] Private [ ] Both
[ ] Can’t say
CONCLUDING
REMARKS
Services and financial services are
different from products. Consumer oriented services are more specific to
consumer and time. These can not be standardized and are not easily
reproducible. Human elements in these services are more prominent and hence
management talent and personnel skills count. Each service activity needs a
different type of market strategy. Generalization is thus, risky. In Capital
Structure of IndiaBulls of financial services, attention has to be given to
selection of personnel, their education on training, their special skills,
motivation and attitudes of the organization. The financial services sector
places a predominant role in stimulating and sustaining economic growth of a
nation. Till recently, the public sector institution have been showing
dominance in all the areas of financial services like banking, insurances, term
lending, housing finances and the like in Indian financial system. Today’s
financial services industry requires new studies to survive and continue to
operate. They have to adopt new Capital Structure of IndiaBulls strategies and
tactics which enable them to capture the maximum opportunities with the lowest
risk in order to enable them to survive and meet the tough competition from
global players of domestic and foreign origin.
RECOMMENDATIONS
·
To focus on advertising effectively the financial services strength.
·
As in near future not all the banking customers will move to
electronic channels, then it would be advisable to use different strategies to
bring in fore front alternative banking through voice telephone. This is
especially for customers who prefer high –contact delivery environments.
·
Increasing the amount of banking hours so that the customers
can go to the bank when need of cash during odd hours.
·
Significantly reducing waiting time for customers by putting
up of quick-drop deposits box to handle deposits and cheque cashing.
·
Providing A.T.M’s in building which houses different office
for convenience of working people.
·
Equip the tellers with computer software and enhancements,
which gives more information of the customers and also their needs. That is to
take the customers by surprise and please him by giving out more information
about him. Hence there is a sense of belonging ness by the customers.
·
Taking care of the teller managers by giving them cash
incentives or taking those people for holiday abroad who have achieved their
targets or made large-volume sales. Also giving catered meals to staff that
work long hours or those working during peak hours.
·
Lastly taking the feed back from customers
so as to better tune its
services with the customers need.
LIMITATIONS
Time
Constraints:
Time is that
factor which cannot be hold by anyone, ones it goes never comes back.
The researcher
found lack of time and done a precise in-dept study and bring out the available
data and information.
Resource
Constraints:
Earlier
there was not that much researches had been conduct on this topic, so the
researcher find it difficult to group the information and get the best output.
As the researcher
had only used the secondary data the lack or impropriety in the secondary data
will also present in the research project
But, still the researcher
had done his level best to perform the research project titled “CAPITAL
STRUCTURE OF INDIABULLS OF FINANCIAL SERVICES”.
BIBLIOGRAPHY
v Kothari,
C. R., Research Methodology –Techniques, New Delhi, V.S. Johri
publication, 2nd edition, 11th reprint 1996.
v Shashi
K. Gupta and Nisha Aggarwal, Financial Services, Kalyani
Publishers, first edition, 2018.
v Ravi
Shanker, Services Capital Structure of IndiaBulls: The Indian Experience,
South Asia Publications, second edition 1997.
v
V.K.
Bhalla International Financial Management, Anmol Publication Pvt.
Ltd., 4 th edition, 2000.
v
Indian
Journal of Capital Structure of IndiaBulls, Vol. XXX IV, October 2018.
v
Net collection:
1.
www.Capital Structure of IndiaBulls financial companies.com
3.
www.google.com
4.
www.fin.min.in
6.
www.financialservices.org..in
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