'Market Survey on Commodities Future Trading\r'

'An diligence Intern station Project On COMMODITIES FURTURE employment WITH RESPECT TO GEOJIT COMTRADE LTD †MARKET arsevass D mavin at CALICUT, KERALA Under the counseling of MRS. C. ANITHA RANI (Asst. Professor of foodstuffing Dept. ) (Project Guide) Mr. CHACKO . C. VARGHEESE (Regional manager) (Corporate Guide) Submitted By: LAKSHMI. P. K Roll No: 20028 shivah SIVANI INSTITUTE OF MANAGEMENT KOMPALLY, SECUNDERABAD ACKNOWLEDGEMENTFirst of both(prenominal)(prenominal) I would uniform to thank Geojit COM tidy sum Ltd, which is a tether arrangement in divvy up good profession, for better- looking me an opportunity to move with them and to do marketplace search to suck in practical acquaintance of how a Commodities Comp from distributively iodine employments. My special obligations to my embodied guide Mr. Chacko C Varghese, Regional manager, GC subsection, Calicut, for granting permission to do the abide in their esteemed organization. I thank him fo r dedicating his worthy while in reviewing my envision get into shape full stopic each(prenominal)y and for directing me all the c engraveing.I am deeply indebted to thank my capital letteracity guideAsst. Prof. C. Anita Rani. I to a fault manage to thank all my faculties who dedicate a bun in the oven taught me and delivershargond their fit with mewhich has supportered us in doing my project. I am grateful to Mr. Ajeesh Paul and Mr. Bijesh K. B, elder executives of Geojit COMtrade ltd, Calicut who was al elbow rooms feed off to clarify my doubts related to the topic. And my sincere convey to them. Also, I am thankful to my family, fri eradicates, and classmates and to the Almighty.Date: touch Place: announcement I, Lakshmi. P. K harbinger that this project entitled â€Å" securities industry investigate on trade good extravert trade with respect to Geojit COMtrade Ltd. ”, hacekmitted for the dirty capital of the PGDM Triple specialty is a re cord of original project †look culture- carried extinct during April 5th- June 5th) , that the project has non formed before the howevert for the award of whatsoever(prenominal) Degree/ Diploma/ Associateship/ kinsfolk of some(prenominal) different similar title.Ithas been realised by me at Geojit COMtrade Ltd, Calicut beneath the focus ofAsst. Prof. Anita Rani,faculty of commercialise habitationing dep trickment of Siva Sivani establish of Management. Date: Sig temperament Place: C O N T E N T S DECLARATION ACKNOWLEDGEMENT CERTIFICATE TABLE OF contents PAGE NO Chapter †IIntroduction 5 avowal of problem 5 Objectives of the larn 6 Scope of domain 6 writings Review 6 Chapter †II Industry visibility 8 ph peerlessr Profile 19 Departmental Details 26Chapter-III research Methodology 44 Sources of data 45 S vitamin Aling Plan 45 desexualiseations 45 Chapter IV Data Analysis: rendition and Findings 46 Chapter-VSWOT Analysis 71 resolving po werfulness 73 Suggestions 74 Bibliography 75 Annexure 76 CHAPTER -I INTRODUCTION good work is an cause bea which has gained prominence ever since the dawn of civilization.It brush aside be attributed to the fact that commodities ar an integral part of our subsists. Over these dogged time at that fleck has been a tremendous issue in this segment which in tump oer has acted as the pillar of strength for the schooling of our economy. This has do it an attractive investment roadway for investors. previous we witnessed lot of money organism invested in those companies which specialized in the productionion of commodities. straightway we stick out a trend opposite; commodities have gained prominence over the times.The speedily advancing technology, particularly the net income, has drastically changed the sociable and stinting landscapes and e very aspect of our chance(a) lives. In the Securities Industry & adenylic acid; emergings Commodities, the Internet ha s facilitated on-line avocation, changing the way the food foodstuff works, as wholesome as the way the investors access the grocery. Having taken advantage of study technology at an opportune time, India has emerged as a front- belt alongning country of on-line profession in the orbiculate securities & commodities markets. on-line traffic” is broadly defined as a profession weapon where investors h r atomic physique 18ing fiats and con unbendable traffic results via electronic conversation channels, much(prenominal)(prenominal) as the Internet, mobile phones, In India, the whole process of securities & commodities trans effects, from mark placement and routing, order execution, to trade confirmation, is in full automated, thus enabling the investors who have situated orders to confirm their handicraft results within some seconds. Geojit COMtrade Ltd. is a good craft attend firm. It specializes in countrified commodities, base metals, in comparable metals, bullion, and no social maneuver.The firm engages in barter go on commodities traded on the MCX and NCDEX in India. Its Research Division produces technical and monetary fundamental research function. The firm besides submits research on markets, currency, and economy. Geojit COMtrade Ltd. is ground in Kochi, India. STATEMENT OF THE occupation Online hereafter tense commodities calling involve ain factors, technical factors, stage business factors and sparing factors. The interplay of these factors on commodities market take ups a deep study closely(predicate)(predicate) the pattern process and procedures and runance.This study is intended to severalize the mixed concepts about online commodities job and its way of procedure. 1. To identify the direct of awargonness of commodities online future merchandise. 2. To identify the mastermind consumer for online merchandise of commodities. 3. To identify the perceptiveness of customers to di scordant investment avenues standardized good market, shargons, reciprocal fund, bank deposits, insurance, debentures and post place savings. 4. To identify the awargonness train of Geojit COMtrade Ltd. and feedback from the customers about the firm. OBJECTIVES OF THE STUDYMy project work programmed was similarly order to cardinal(prenominal) particular tar punchs and the main objectives of the study be as bellow; 1. To clearly call down the aw argonness level about Geojit commodities 2. To control the information of masses about Geojit commodities 3. To deck up an approach by making pot aw atomic number 18 of Geojit commodities The Main purpose of conducting the stack for Geojit COMtrade Ltd * To identify the tar scram consumer for commodities business. * To identify the p author of customers to respective(a) investment avenues like trade good market, sh ars, mutual fund, bank deposits, insurance, debentures and post office savings. To identify the conscious ness level of Geojit COMtrade Ltd. and feedback from the customers about the firm. * To get a feel of the Customers’ perception about Geojit commodities services products. * To find an grab communication message for attracting the people to Geojit COMtrade Ltd field OF THE STUDY Globalization of the monetary market has led to a manifold addition in investment. new-fangled markets have been receptive; current legal documents have been bring in; and new services have been ordered. Besides, a outlet of opportunities and challenges have too been take a leakn open.Online Commodities barter is new as compared to Equity market in India. Mainly trio metamorphoses are involved in online commodities profession MCX, NCDEX & NMCE LITERATURE REVIEW So m both an another(prenominal)(prenominal) studies are d sensitive off in the res publica of good future trading. Some of the grand studies are reviewed as follows; In a well- have it offn literature survey on goodne ss futures research, Gray and Rutledge ob rund that, ‘Anyone who nethertakes a survey of the literature on futures trading is confronted with an amorphous and rather disjointed diagnose of publications (1971 p 57).Some of the pioneers in futures research, like Hol gestate Working, Roger Gray, Tom Hieronymus, Allen Paul, and Henry Bakenwere based on an in-depth infrastanding of sparing institutions, an appreciation of the study problems facing the manufacture, and careful epitome of pertinent data. Gray and Rutledge (1971) provide the more or less tremendous survey on futures markets and the topics clicked in their review include evolutionary aspects of futures markets, inter-temporal expense relationships, and concept of turn offrow, damage variability, and the stochastic nature of charge fluctuations. The Keynesian conjecture of mean(prenominal) backwardation was one of the earliest theories of the inter-temporal futures worths and it postulated that futur es expenditures are diagonal estimates of forthcoming silver footings because hedgers essentialiness level speculators for assuming the price happen of dimension future centralises * Working (1949) developed the com topical anaestheticize that the principal(a) function of commodity futures markets was the planning of the births for the storage services, and he viewed inter-temporal prices as the conjointly determined price of storage. Holbroook Working (1953) categorized alternative motives for commercial hedge in the commodity futures and these categories continue to be effectual today. The three arbitrage hedgerow, operational hedge and anticipatory hedging. Since the futures and cash price gather in the lurchy month, a commercial firm squeeze out ‘arbitrage’ the twain markets and earn a fortune- bighearted return from the predictable change in the foot- the numeral difference between the futures and cash price.Operational hedging facilitates commercial business by allowing firms to steal and sell on the futures markets as on the spur of the moment-lived substitutes for the subsequent cash market minutes. This provides firms with an avenue for being flexible in periodical operations and reducing price venture. prevenient hedges involve buying or interchange futures shoots by commercial firms in ‘ forethought’ of the forthcoming cash market proceedings. equipment casualty expectation plays a major(ip)(ip)(ip)(ip)(ip) procedure in this type of hedge. * Leuthold and Tomek (1980) explained that semi-perishables (e. . , butter, eggs, onions, potatoes) were traded at the turn of the century but the introduction of trading in nonstorables such as live hogs and live cattle in the sixties was a watershed for the industry. They palisaded that since future prices for nonstorables are non being utilise to apportion inventories, advancing pricing is an authorized economic andification for these marke ts They show uped out that some of the farmers bide concerned about the alleged contrary influence of futures trading. consort to theoretical literature, elementary commodity lay downrs stand to derive huge price risk reduction good from hedging with all future contracts or earlier contracts (Johnson 1960; Stein 1961; McKinson in 1967; Danthine 1978; Holthausen 1979; Feder, besides and Schmitz 1980; Andearson and Danthine 1983) * According to confirmable literature either minimum variance hedge ratios or optimal hedge ratios (i. e. % of produce to be hedged) and has install large potential risk reduction benefits from hedging (Henifner 1972; Peck 1975; Ederington 1979; impart and Eaker 198559; Casteino 1992; Lene, Kimle, and Hayenga 1993) * But both theoretical and empirical literature appears to contradict reality because very hardly a(prenominal) primary producers actually hedge (Helmuth 1977; Berk 1981; Brorsen 1995) * Survey results of Blank, Carter and McDonald 1997 found thatfarmers prefer onwards contracting to direct hedging with future contracts.According to Miller (1986) the one key distinguishing skylark between these twain factors is the absence of base risk in prior contracting. * Carter and Loyns (1985) found that due to a high basis risk, on that point was a little incentive for Canadian feedlots to hedge cattle on the Chicago futures market. * Rolfo in 1980 suggested production risk as an explanation for the lack of hedging inte stick around in the real world. virtually research needs to be directed towards the impact of political relation farm programs on commodity futures markets, along the lines of Crain and Lee (1996) * The theory of price of storage explains inverted markets by appealing to the concept of convenience yield. According to this theory, the futures price can be little(prenominal) than the spot price plus the bell of carry when the commodity generates convenience yield. CHAPTER -II patience PROFILE 1) commodity MARKET A commodity is a material that is traded in big quantities and whose quality steps and price are objective and universally applicable.For manakin, gilded is a commodity because quality standards and price of princely are objective and universal, but gold jewelry is not a commodity because the price of jewelry depends on in metric grained factors such as design, brand image, and so on Other examples of commodities are: agricultural produce such as food grains, pulses, like, and so ontera ; metals such as nickel, zinc, aluminum, and so forth good markets are markets where raw or primary products are diversifyd. These raw commodities are traded on regulated commodities exchanges, in which they are bought and exchange in standardized contracts.It covers sensual product (food, metals, and electricity) markets but not the ways that services, including those of governments, nor investment, nor debt, can be seen as a commodity. goodness Market is an lick trader’s exchange in which standardized, graded products are bought and sold. World simple, there are 50 major commodity exchanges that trade over hundred commodities, ranging from wheat and cotton to silver and oil. The trading of commodities consists of direct forcible trading and derivatives trading. metamorphose traded commodities have seen an upturn in the volume of trading since the start of the decade.This was largely a result of the growing attraction of commodities as an summation class and a pro actionration of investment options which has manipulate it easier to access this market. goodness trading mail service trading taint trading is all transaction where tar either takes place immediately, or with a minimum put aside between the trade and pitch due to technical constraints. Spot trading unremarkably involves opthalmic inspection of the commodity or a sample of the commodity, and is carried out in markets such as wholesale markets. goodne ss markets, on the other hand, require the existence of agree standards so that trades can be do without visual inspection. aways contracts A forward contract is an agreement between two parties to exchange at some inflexible future see a apt(p) total of a commodity for a price defined today. The icy price today is know as the forward price. Futures contracts A futures contract has the selfsame(prenominal) oecumenical features as a forward contract but is transacted by dint of and finished a futures exchange. Futures contracts — which stripe a price for the hawky of a particular commodity in, say, six months or a year — are not themselves to blame.Theyre the grease that makes these markets function. Futures allow businesses like power companies or airlines to hedge over against increases in send away costs, or food processors to imperturbable over fluctuations in the price of wheat and corn. border Street plays an invaluable grapheme, t oo, since financial investors — those call that prices pull up stakes fall, as well as those betting theyll rise — provide of the essence(p) liquidity. trade good and futures contracts are based on what’s termed forward contracts. Early on these forward contracts †agreements to buy now, expect and deliver afterward †were assume as a way of getting products from producer to the consumer.These typically were wholly for food and agricultural products. prior contracts have evolved and have been standardized into what we know today as futures contracts.. In essence, a futures contract is a standardized forward contract in which the buyer and the marketer accept the terms in paying attentions to product, grade, quantity and location and are lone(prenominal) secrete to negotiate the price. hedging Hedging, a super C practice of farming cooperatives insures against a despicable harvest by purchasing futures contracts in the same commodity.I f the cooperative has significantly less of its product to sell due to play or insects, it makes up for that loss with a profit on the markets, since the overall sum of the proceeds is short eitherwhere that suffered the same conditions. Delivery and condition guarantees In addition, delivery day, method of toughenedtlement and delivery decimal point must all be condition. Typically, trading must end two (or to a greater extent) business days prior to the delivery day, so that the routing of the shipment can be finalized via ship or rail, and payment can be hardenedtled when the contract arrives at any delivery point.Most trading is do in futures contracts, that is, agreements to deliver goods at a set time in the future for a price rude(a)ized at the time of the agreement. Futures trading allow both hedging to comfort against serious losses in a declining market and speculation for gain in a rising market. For example, a seller whitethorn sign a contract agreeing to deliver grain in two months at a set price. If the grain market declines at the end of two months, the seller will hitherto get the higher price quoted in the future contract.If the market rises, however, speculators buying grain stand to profit by pay the lower contract price for the grain and reselling it at the higher market price. Spot contracts, a less widely used form of trading, call for immediate delivery of a specified commodity and are often used to obtain the goods prerequisite to fulfill a futures contract. An self-sufficient U. S. regulative agency, the Commodity Futures occupation relegating was established in 1974 to regulate commodity markets. In 1982, the Chicago moneymaking(a) commuting introduced a futures contract for Standard ; Poor’s 500 U.S. companies that allow investors to speculate on the future prices of the descents. traffic of S;P 500 and other financial futures has downhearted down some of the barriers that once disconnected con trast, bond, and commodity markets and make it easier for investors to hedge their ancestry investments. Critics charge that the futures trading at the commodity markets in Chicago have made stock prices more volatile. The Chicago plank of switch over is the largest futures and options exchange in the Unites evidences, the largest in the world is Eurex, an electronic European swap.GLOBAL goodness MARKET It is the trading of materials used to make finished products, Is far more important that what the most people give it denotation for. It’s what to gives millions consumers worldwide their cups of creamy lattes, their breakfast cereals, the steel for their home construction, and even the fuel to run their cars. In fact trans home(a) commodity trading is a multi-billion dollar sign business, and on average the make sense of trade executed in the commodity exchanges are about five times as much as those on major stock exchanges.And to be honest in the recent past it ha s been anything but dull. In the past five years commodities have provided all the thrills and spills of a high octane Vin diesel movie. The idea of trading in commodity future contracts is really very old â€school, although it has occurred new age glitz because of electronic exchanges. Most experts trace their origins back to Japan, were rice futures were offshoot traded in the 17th century. Future market for precious metals such as gold and silver has to a fault been somewhat since in the 19th century with lemon contracts with the Chicago visiting card Of Trade (CBOT).Basically commodity futures allow buyers and sellers to make bets on the anticipate future spot prices. They help both sides obtain insurance for the future assess of their outputs or inputs. Cereals were first to be traded below the future contracts and the farmers were the first to use such contracts as they protect them from any engage fall in the value of crop harvested in future. Commodity future dif fered from beauteousness derivatives in three important ways; 1. They are derivative securities not claims on long living corporations. 2. They are short maturity claims on real assets 3. nlike financial assets, they experience unequivocal seasonal variations in price and unpredictability Today there are more than 50 commodity exchanges in the world wide trading in more than 100 products. The major products come nether five categories; 1. unique metals (gold, silver, platinum, and so on ) 2. Industrial metals (copper, nickel, aluminum, zinc, etc. ) 3. coarse commodities (wheat, corn, cotton, oilseeds, coffee, cocoa, sugar etc. ) 4. Livestock (pork bellies, cattle, etc. ) 5. Energy(crude oil, cancel triggerman, petrol, diesel etc. ) fossil oil makes up the world’s largest commodity future market. Daily turnover on the New York Mercantile fill in(NY mex) alone totals about $15 billion) followed by coffee, steel, gold and wheat. New contract ideas however keep papa up all the time. For instance, freight futures are also traded on the Norwegian futures and Options alter base and the Nymex. While the Chicago Mercantile exchnge9 now taken over by the CBOT) offers contracts on temperatures, recyclable for hedging agricultural commodity or energy prices. goodness proximo TRADING EVOLUTION OF FUTURE TRADING AND ITS PRESENT STATUS nonionized future market evolved in India by the setting up of â€Å"Bombay cotton wool Trade affiliation Ltd. in 1875. In 1893, pursuance widespread discontent amongst principal cotton mill owners and merchants over the functioning of the Bombay Cotton Trade crosstie, a separate connecter by the name â€Å"Bombay COTTON trade Ltd. ” was constituted. Futures trading in oilseeds were organised in India for the first time with the setting up of Gujarati VyapariMandali in 1900, which carried on futures trading in groundnut, silk hat seed and cotton. Before the sulfur World War broke out in 1939 several fut ures markets in oilseeds were functioning in Gujarat and Punjab.Future trading in young Jute and Jute Goods began in Kolkata with the establishment of the Calcutta hessian supersede Ltd. , in 1919. later(prenominal) East Indian Jute Association Ltd. was set up in 1927 for organizing futures trading in fresh Jute. These two tie-up amalgamated in195 to form the redeem East India Jute ; Hessian Ltd. , to conduct organized trading in both Raw Jute and Jute goods. In case of wheat, future markets were in existence at several centers at Punjab and U. P. The most notable amongst them was Chamber of commercialism at Hapur, which was established in1913.Other markets were located at Amritsar, Moga, Ludhiana, Jalandhar, Fazilka, Dhuri, Barnala and Bhatinda in Punjab and Muzaffarnagar, Chansausi, Meerut, Saharanpur, Hathras, Ghazibad, Sikenderabad and Barielly in U. P. Futures market in Bullion began at Mumbai in 1920 and later similar markets came up at Rajkot, Jaipur, Jamnagar, Kanpur, Delhi and Calcutta. In due course several other exchanges were also forced in the country to trade in such different commodities as pepper, turmeric, potato, sugar and Gur (jaggory). After independence, the Constitution of India brought the subject of â€Å" seam trades and Futures” in the Union list.As a result, the responsibility for regulation of commodity futures markets developed on Govt. of India. A bill on forward contracts was reffered t an expert direction headed by Prof. A. D. Shroff select commissions of two concomitant Parliaments and finally in celestial latitude 1952 forwards Contracts (Regulation) round, 1952, was enacted. The Act provided for 3-tier regulatory system; (a) An tie recognized by the semipolitical relation of India on the recommendation of transport markets Commission (b) The earlier Markets Commission (it was set up in September 1953) (c) The commutation organisation.Forward Contracts (Regulation) Rules were notified by the rally judicature in July, 1954. The Act divides the commodities into 3 categories with reference to extent of regulation, viz: (a) The commodities in which futures trading can be organized beneath the auspices of recognized connection. (b) The Commodities in which the future trading is prohibited. (c) Those commodities in which have neither being traded under the recognized association nor prohibited are referred as unloosen Commodities and the association organized in such free commodities is required to obtain the award of Registration from the forward Markets Commission.In the septetties, most of the registered associations became inactive, as futures as well as forward trading in the commodities for which they were registered came to be either suspended or prohibited altogether. The Khursho mission(June 1980) had recommended reintroduction of futures trading in most of the major commodities, including cotton, Kapas, raw jute and jute goods and suggested that steps may be taken for introducing futures trading in commodities, like potatoes, onions, etc. at withdraw time.The government, accordingly initiated futures trading in Potato during the latter one-half of 1980 in quite a few markets in Punjab and Uttar Pradesh. After the introduction of economic reforms since June 1991 and the consequent gradual trade and industry liberalization in both the domestic help and external sectors, the Govt. of India appointed in June 1993 one more committee on Forward Markets under Chairmanship of Prof. K. N. Kabra. The Committee submitted its report in September 1994. THE MAJORITY REPORT OF THE Committee ecommended that futures trading be introduced in 1) Basmati strain 2) Cotton ; Kapas 3) Raw Jute ; Jute Goods 4) Groundnut, rapeseed/mustard seed, cottonseed, benny seed, sun emanateer seed, safflower seed, copra and soya bean, ; oils and oilcakes of all of them. 5) Rice brain oil 6) topper oil ; its oilcake 7) Linseed 8) Silver ; 9) Onions. The committee also recom mended that some of the existing commodity exchanges particularly the ones in pepper and castor seed, may be upgraded to the level of foreign future markets.The liberalized policy being followed by the authorities of India and the gradual with projectal of the procurance and distribution channel necessitated setting in place a market mechanism to perform the economic functions of price denudation and risk prudence. The discipline Agriculture polity announced in July 2000 and announcements of Hon’ble Finance curate in the Budget Speech for 2002-2003 were indicative mood of Governments resolve to put in place a mechanism of futures trade/market. As a follow up the Government tailord notifications on 1. 4. 003 permitting futures trading in the commodities, with the issue of these notifications futures trading is not prohibited in any commodity. Options trading in commodity are, however now prohibited. ECONOMIC earn OF FUTURE TRADING ; ITS PROSPECTUS Futures contracts perform two important functions of price baring and price risk management with reference to the tending(p) commodity. It is useful to all segments of economy. It is useful to producer because he can get an idea of the price likely to carry at a future point of time and therefore can see between mixed competing commodities, the best that suits him.It enables the consumer get an idea of the price at which commodity would be available at a future point of time. He can do kosher cost and cover his purchases by making forward contracts. The futures trading is very useful to the exporters as it provides an allege information of the price likely to prevail and thereby help the exporter in quoting a realistic price and thereby secure export contract in a competitive market. Having entered into an export contract, it enables him to hedge his risk by operating in futures market.Other benefits of futures are: (i) Price stabilization-in times of violent price fluctuations †this mech anism dampens the peaks and lifts up the valleys i. e. the amplitude of price variation is reduced. (ii) Leads to compound price construction doneout the country. (iii) Facilitates lengthy and complex, production and manufacturing activities. (iv) Helps equilibrium in supply and subscribe position without the year. (v) Encourages competitions and acts as a price barometer to farmers and other trade functionaries.Futures trading are also capable of being use by unscrupulous speculators. In order to safeguard against uncontrolled speculation genuine(p) regulatory measures are introduced from time to time. They are: (a) Limit an open position of an idiosyncratic operator to foresee over trading. (b) Limit on price fluctuation ( all(prenominal)day/weekly) to frustrate abrupt upswing or downswing in prices (c) Special margin deposits to be tranquil on outstanding purchases or gross revenue to curb excessive speculative legal action through financial easeraints. d) Minimum/ upper limit prices to be prescribed to prevent future prices from falling below the levels that are un compensable and from rising above the levels not warranted by genuine supply and demand factors. During shortages, perfect like skipping trading in certain delivers of contract, closing the markets for a specified period and even closing out the contract to overcome emergency situations are taken. PROSPECTS With the gradual drug withdrawal of the government from various sectors in the ost liberalization era, the need has been felt that various operators in the commodities market be provided with a mechanism to hedge and transfer their risks. India’s obligation under WTO to open horticulture sector to world trade would require futures trade in a wide variety of primary commodities and their products to enable diverse market functionaries to cope with the price volatility prevailing in the worlds market. CHARECTERISTICS OF FUTURE TRADING A â€Å"Futures Contract” is a highly standardized contract with certain distinct features.Some of the important features are as under: (a) Futures trading are necessarily organized under the auspices of a market association s that such trading is confirmed to or conducted through particles of the association in accordance with the procedure placed down in the Rules ; byelaws of the association. (b) It is invariably entered into for a standard variety known as â€Å"basis variety” with the permission to deliver other identified varieties known as â€Å"tender able varieties”. (c) The units of price commendation and trading are fixed in these contracts, parties to the contracts not being capable of holdfast these units. d) The delivery periods are specified. (e) The seller in a futures market has the choice to resolve whether to deliver goods against outstanding sale contracts. In case he decides to deliver goods, he can do so not unaccompanied at the location of the Association through which trading is organized but also at a number of other pre-specified delivery centers. (f) In futures market actual delivery of goods takes place barely in a very few cases. operations are mostly shape up before the due date of the contract and contract and contracts are settled by payment of differences without any physical delivery of goods taking place.RECENT TRENDS IN COMMODITY TRADING Nature’s Commodity Outputs Commodity thinking is undergoing a more direct revival thanks to the theorists of â€Å"natural capital whose products, some economists argue, are the only genuine commodities- air, water and calories we consume being mostly interchangeable when they are free of pollution or disease. Whether we wish t think of these things as tradable commodities rather than birthrights has been a major source of controversy in many nations.Most types of environmental economics compute the shift to measuring them inevitable argue that reframing political economy to consider th e flow of these basic commodities first and first of all, helps avoids use of any military fiat except to protect â€Å"natural capital” itself, and basing credit-worthiness more rigorously on commitment to pre armed service biodiversity aligns the long-term interestingnesss of eco regions societies, and individuals. They look for relatively conservative sustainable development schemes that would be amiable to measuring eudaimonia over long periods of tie, typically â€Å"seven generations”, in line with Native American thought.Weather trading However, this is not the only way in which commodity thinking interacts with ecologists’ thinking. Hedging began as a way to bring out the consequences of damage do by natural conditions. It has matured not only into a system of interlocking guarantees, but also into a system of indirectly trading on the actual damage done by weather, using weather derivatives for a rice, this relieves the purchaser of concerns such as whether a freeze will hurt the Brazilian coffee crop, whether there will be a drought in the U. S. orn crash and what the chances that we will have a coldness winter are, effort natural gas prices higher and creating havoc in Florida o jog areas. Emissions trade Weather trading is just one example of â€Å" ostracise commodities”, units of which fight back harm rather than good. â€Å"Economy is three fifths of ecology argues Mike Nickerson one of many economic theorists who hold that nature’s productive services and barren judicature services are poorly accounted for. maven way to whitely allocate the waste establishment energy of nature is â€Å"cap and trade”- market twist that is used to trade toxic emissions rights in the united States, e. . SO2. This is in effect a â€Å"negative commodity”, a right to throw something away. In this market, the atmosphere’s capacity to absorb certain amounts of pollutants is measured, divided into units, and traded amongst various market players. Those who emit more SO2 must pay those who emit less. Critics of such schemes argue that unauthorized or unregulated emissions til now happen, and that â€Å"grandfathering” schemes often permit major polluters, such as the state governments’ own agencies, or poorer countries, to expand emissions and take jobs, while the SO2 output still floats over the border and causes death.In practice, political pressure has overcome most such concerns and it is questionable whether this is a capacity that depends on U. S. clout: The Kyoto Protocol established a similar market in globose green category gas emissions without U. S. support. Community as a commodity This highlights one of the major issues with global markets of either the positive or negative kind. A community must somehow believe that the commodity instrument is real, enforceable, and well worth paying for. Avery upstanding part of the anti-globalization move ment opposes the Commodification of currency, national sovereignty, and handed-down cultures.The capacity to repay debt, as in the current global credit money regime anchored by the Bank for outside(a) settlements, does not in their view outfit to measureable benefits to gentle wellbeing worldwide. They seek a fairer way for societies to compete in the global markets that will not require changeover of natural capital to natural resources nor human capital to move to developed nations in order to find work. Some economic systems green economists would replace â€Å"gold standard” with a â€Å"biodiversity standard”. It remains to be seen if such plans have any chastity other than as olitical ways to draw attention to the way capitalism itself interacts with life. military soulfulnessnel life as a commodity The green economists and the more conservative environmental economics argue that not only natural ecologies, but also the life of the individual human being is inured as a commodity by the global markets. A good example is the IPCC calculations cited by the Global Commons constitute as placing a value on a human life in the developed world â€Å"15x higher” than in the developing world, based solely on the ability to pay to prevent temper changes. Overview of commodities exchange in IndiaForward Markets Commission (FMC) headquartered at Mumbai, is a regulatory authority which is overseen by the Ministry of Consumer Affairs, Food and Public Distribution, Govt. of India. It is a statutory body set up in 1953 under the Forward Contracts (Regulation) Act, 1952. â€Å"The Act provides that the Commission shall consist of not less than two but not exceeding quadruplet weapon systems appointed by the Central Government out of them being nominated by the Central Government to be thereof. presently Commission comprises three members among whom Shri. B. C. Khatua, IAS, IS THE Chairman and Shri.D. S. Kolamkar IES, and Shri Rajeev Ku mar Agarwal, IRS, are the members of the commission. ” The functions of Forward Markets Commission are as follows: (a) To advise the Central Government in respect of the recognition or the withdrawal of recognition from any association or in respect of any other matter arising out of the administration of the Forward Contracts(Regulation) Act 1952. (b) To keep forward markets under observation and to take such action in relation to them, as it may consider necessary, in exercise of the powers assign to it by or under the Act. c) To receive and whenever the Commission thinks it necessary, to publish information regarding the trading conditions in respect of goods to which any of the furnish of the act is made applicable, including information regarding supply, demand and prices, and to submit to the Central Government, periodical reports on the working of forward markets relating to such goods. (d) To make recommendations cosmopolitanly with a view to amend the organizatio n and working of forward markets. (e) To attend the inspection of the accounts and other documents of any recognized association or any member of such association whenever it considers.List of Commodity Exchanges in India 1. Batinda Om ; Oil Exchange Ltd. , Batinda. 2. The Bombay Commodity Exchange Ltd. , Mumbai 3. The Rajkot Seeds oil ; Bullion Merchants` Association Ltd 4. The Kanpur Commodity Exchange Ltd. , Kanpur 5. The Meerut Agro Commodities Exchange Co. Ltd. , Meerut 6. The spice ups and Oilseeds Exchange Ltd. 7. Ahmedabad Commodity Exchange Ltd. 8. Vijay Beopar Chamber Ltd. , Muzaffarnagar 9. India Pepper ; Spice Trade Association, Kochi 10. Rajdhani Oils and Oilseeds Exchange Ltd. , Delhi 11. home(a) get on of Trade, Indore 12. The Chamber Of Commerce, Hapur 13. The East India Cotton Association, Mumbai 4. The Central India Commercial Exchange Ltd. , Gwalior 15. The East India Jute ; Hessian Exchange Ltd. 16. First Commodity Exchange of India Ltd, Kochi 17. Bikaner Com modity Exchange Ltd. , Bikaner 18. The Coffee Futures Exchange India Ltd, Bangalore 19. Esugarindia expressage 20. discipline Multi Commodity Exchange of India trammel 21. Surendranagar Cotton oil ; Oilseeds Association Ltd 22. Multi Commodity Exchange of India Ltd 23. National Commodity ; Derivatives Exchange Ltd 24. Haryana Commodities Ltd. , Hissar 25. e-Commodities Ltd Of these 25 commodities exchanges the MCX, NCDEX and NMCEIL are the major Commodity Exchanges.Multi commodity exchange of India Ltd †MCX is an independent and de-mutualised exchange based in Mumbai. effected on 10 November, 2003, it is the third largest bullion exchange and fourth largest energy exchange in the world. Recognized by the Government of India it look ats in legion(predicate) commodities and carries out online trading, clear and settlement processes for commodities future market countrywide. MCX COMDEX is Indias foremost and sole composite commodity futures price index National Com modity & Derivatives Exchange of India Ltd (NCDEX) located in Mumbai, is a public limited partnership co-ordinated on 23rd April 2003.Promoted by national level establishments it is run by headmaster management. Regulated by the Forward Market Commission with reference to futures trading in commodities, it trades in various commodities online. The NCDEX is covered by: * Companies Act * Stamp Act * Contracts Act * Forward Commission (Regulation) Act National Multi-Commodity Exchange of India limited (NMCEIL) is considered the first de-mutualized, online exchange dealing in numerous commodities. incorporated on 20th December 2001, it is promoted and run by: * Central Warehousing corporation National Agricultural Cooperative marketing Federation of India contain * Gujarat Agro Industries Corporation Limited * National Institute of Agricultural selling * Gujarat State Agricultural Marketing Board * Neptune Overseas Limited The Commodity Exchanges with their lengthy reach embrace new participants, resulting in a powerful price find process. COMPANY PROFILE Evolution of the smart set It all started in the year 1987 when Mr. C. J. George and Mr. Ranajit Kanjilal founded Geojit as a partnership firm. In 1993, Mr. Ranajit Kanjilal from the firm and Geojit became the proprietary concern of Mr.C. J. George. In 1994, it became a Public Limited Company named Geojit Securities Ltd. The Kerala State Industrial knowledge Corporation Ltd. (KSIDC) in 1995, became a co-promoter of Geojit by acquiring a 24 percent chance in the company, the only instance in India of a government entity participating in the right of a stock broking company. The year 1995 also saw Geojit being listed on the leading regional stock exchanges. Geojit listed at the stock exchange, Mumbai ( mad cow disease) in the year 2000. Company’s wholly owned subsidiary, Geojit Commodities Ltd. launched Online Future Trading in Agri -commodities, precious metals and energy futures on fo urfold commodity exchanges in 2003. This was also the year when the company was renamed Geojit financial assistant Ltd. (GFSL). The Board consists of professional directors; including a Kerala Government nominee. With effect from July 2005, the Company is also listed at National neckcloth Exchange (NSE). Company is a character member of the fiscal Planning Standards Board of India and is one of the largest alluviation instrumentalist (DP) brokers in the country.On 3 maiden December 2007, the company closed its commodities business and sur composeed its membership in the various commodity exchanges held by Geojit Commodities Ltd. Global banking major BNP Paribas took a stake in the year 2007 to become the superstar largest shareholder. endly, Geojit Financial service Ltd. has been renamed as Geojit BNP Paribas Financial Services Ltd. VISION The vision of Geojit is to be leading financial and commodities market go-between for individuals and institutional clients from India ba nd overseas.They continually accomplish to raise their products and service standards by wakeless industriousness of technology and processes. MANAGEMENT OF GEOJIT COMTRADE Geojit COMtrade offers trading services in Commodities Futures. It is managed by a group of professionals having considerable years of experience and expertise in Commodities, ever since the reintroduction of Commodities Futures in India in 2003. Geojit COMtrade offers its client state-of-art trading tools such as:   * | * Technical and fundamental analysis at this website and also through the companys large branch network | * | * Research Reports | | * SMS alerts on market movement | * | * Content juicy website | * | * Online trading | * | * Facility to view online ledger, holdings, positions, etc. | Geojit COMtrade also conducts seminars, distributes free in-house literature and holds interactive sessions that help raise awareness on the future market. The number of participants is continuously on the ri se thus leading to increase volumes and market efficiency. Geojit COMtrade is a member of the sideline Exchanges: * National Multi Commodity Exchange of India Limited (NMCE) | | * National Commodity ; Derivatives Exchange Limited (NCDEX) | | * Multi Commodity Exchange of India Limited (MCX) | | * National Spot Exchange of India Ltd (NSE) | Geojit COMtrade offers futures trading through multiple exchanges in varied commodities such as: Agricultural Commodities: | * Plantation Crops like Rubber, Coffee, Arecanut, etc. | | * Spices like Pepper, Cardamom, Turmeric, Jeera, Chilly, etc. | | * Pulses like Chana | | * Oil ; Oil Seeds like orderly Soya oil, Soya bean, Cotton seed, leaf mustard Seed, Mustard oil, etc. | * Cereals like corn whisky | | * Other commodities like cluster bean gum, Guar seed, Menthaoil, Potato, Sugar, etc. | | * Commodity Spot products like E Gold, E Silver, E Copper, E Lead, and E Zinc. | Precious metals: | * Gold, Silver, and Platinum | Metals: | * Copper, L ead, Aluminum, Steel, Tin, Nickel, Zinc, etc. | Energy products: | * Crude oil, Natural Gas, atomic number 6 Credits, etc. MILESTONES | | | Product innovation plump for by a high level of domain specific knowledge and state-of-the-art technology has helped Geojit to set many milestones including numerous industries. 986 * rank in Cochin Stock Exchange (CSE). 1994  * Becomes a Public Limited Company named Geojit Securities Ltd. 1995  * Kerala State Industrial Development Corporation Ltd. (KSIDC) acquires 24 percent fairness stake. * Membership in National Stock Exchange (NSE). * Public Issue       1996 * prepare of Portfolio Management Services with SEBI registration. 1997  * Depository Participant (DP) under National Securities Depository Limited. 1999  * Membership in Bombay Stock Exchange (BSE). 2000 * BSE Listing. * 1st broking firm in India to offer online trading ease. * Commences Derivative Trading with NSE. Integrates the 1st Bank Payment Gateway in the country for Internet Trading. 2001 * Becomes Indias first DP to launch depository transactions through Internet. * Establishes Joint think in the UAE to serve NRI customers. 2002 * 1st in India to launch an integrated internet trading system for hard currency & Derivatives segments. 2003 * Geojit Commodities Limited, wholly owned subsidiary, launched Online Futures Trading in agri-commodities, precious metals and in energy futures on multiple commodity exchanges. * National launch of online futures trading in Rubber, Pepper, Gold, wheat berry and Rice. Company renamed as Geojit Financial Services Ltd. 2004 * National launch of online futures trading in Cardamom. 2005 * NSE Listing. * Geojit Credits, a subsidiary, registers with RBI as a Non-Banking Financial Company (NBFC). * National launch of online futures trading in Coffee. 2006 * Charter member of the Financial Planning Standards Board of India. 2007 * BNP Paribas takes a stake in the company’s equ ity, making it the single largest shareholder. * Establishes Joint embark in Saudi Arabia to serve the Saudi national and the NRI. 2008 * BNP Paribas Securities India (P) Ltd. †a Joint Venture with BNP Paribas S. A. or Institutional Brokerage. * 1st brokerage house to offer full Direct Market Access execution in India for institutional clients. 2009 * plant of Property Services division. * Launch of online trading in Currency Derivatives. * Consequent to BNP Paribas becoming the largest stakeholder in Geojit BNP Paribas, company is renamed as Geojit BNP Paribas Financial Services Ltd. 2010 * Launch of  change over (Financial Investment Platform), a new right online investment platform. * Launch of state of the art Mobile Trading platform to seat clients to trade from anywhere, even while on the move through the innovative application FLIP- ME. | | | | | Board of DirectorsMr. A. P. Kurian                      Ã‚ Â Â Â Â Â Â Â Â Â Â  Non †executive & self-sufficing ChairmanMr. C. J. George                                Managing Director & head teacher PromoterMr. Alkeshkumar Sharma                    Non †executive director & Independent DirectorMr. Olivier Le yard                           Non †executive DirectorMr. Pierre Rousseau                           Non †Executive DirectorMr. Mahesh Vyas                               Non †Executive & Independent DirectorMr. RakeshJhunjhunwala                Ã‚ Â Â Â  Non †Executive DirectorMr.RamanathanBupathy                    Non †Executive & Independent DirectorMr. Pun running noose George                        Non †Executive DirectorA growing footprintWith a forepart in almost all the major states of India, the network of 558 offices across 300 cities and towns presently covers Andhra Pradesh, Bihar, Chattisgarh, Goa, Gujarat, Haryana, Jammu & Kashmir, Karnataka, Kerala, Madhya Pradesh, Maharashtra, New Delhi, Orissa, Punjab, Rajasthan, Tamil Nadu & Pondicherry, Uttar Pradesh, Uttaranchal and West Bengal.GEOJITCOMMODITIES * Number 1 Broking house status in terms of Trading Terminals : Dun & Bradstreet Survey 2008 * The first brokerage to offer online trading in Rubber (Mar 2003), Pepper (Apr2003), Gold (Oct2003), wheat and Rice (Dec2003), Cardamom (Apr 2004) and Coffee ( Feb2006) * sword image of Industry Pioneer since arising of commodity futures in 2003| Its clientele range from investors, co-operative societies, state and national institutions to dealers, traders, manufacturers, financiers, speculators, arbitragers, etc.Geojit COMtrade does not have proprietary interest in any commodity and therefore is price neutral. Transaction costs are highly cheap attracting a spectrum of investors. Membership in multiple exchanges gives clients the added advantage of arbitrage. Geojit has specialized staff that provide the required guidance, help and enable clients to enter at the appropriate price. Geojit COMtrade: Increasing investor awareness/education * Daily, weekly and special reports on various commodities & currencies covering both international as well as domestic markets. Seminars and workshops designed to help both the new clients as well as experienced traders. * Increased media spending to make ourselves more visible in print, visual as well as digital media, so that our reports and views reach better to our investors. * Offers SMS / telecommunicate reports at no additional cost. GEOJIT anthem DRIVEN BY TRUST â€Å"With trust, our driving force Transparent in daily chores, Passionate, compassionate, We keep Geojit on course deferent of our call We care for our patrons’ all. Grateful for our growth before We seek blessings to grow tall. Shanti ho barabaar shanti ho Sayyam, Samridhi, Swaasthya ho,Geojit Jahaan ho! Expanding far and wide, And serving the world with pride, Loyalty inspiring us To be beyond the high billow; A brighter word to make Unfurling the reel we take; â€Å"All for one and one for all,” With love to last above all. divisional STUDY Administration * Provides support and service for the activities of the board of directors * Coordination of branch activities and provision of interaction between branches and the main office * Expanding the reorganization of Bank market network . * To create appropriate condition for efficient operation of structural franchisees Human resourceHuman choices and Administration section is one, which facilitates smooth working of the organization by looking into the human resource side and also the overall administration of organization. The Human vision Management is very important for the victor of any organization. Different individual indicate similar and dissimilar pattern of behavior. They have their own set of needs, drives, goals and experiences. Management should be aware of their requirements. Manpower management is the most critical job. Proper human resources management will enhance the efficiency and writ of execution of people at work.HR MISSION * To create HR policies and processes which are employee friendly * To fix a culture of warm forthcoming and professional with a sense of ownership and pride. * To encourage innovative thinking. * To encourage enhancer and team work. * To develop leaders at all levels with frequent management achievements. * To create a learning organization. * To develop competencies and skills through training and development. * To constantly raise levels of employee productivity. * To work towards attaining and sustaining the best employer status Other functions ofHuman Resource Department RecruitmentRecruitment means generating a puddle of serve employees for job. Announcing job opportunities to public in such a way that number of suitable people will apply for them. Recruitment process is done only at the initial stage. Mainly qualified people are selected for work. endurance Selection means choosing right profile from that number, those applicants whom are most likely to succeed in the job. After getting the list of candidates an converse is conducted at the unit level. Final cream is made after testing their skill and technical abilities by putting them on the job. Training and developmentTraining and development is also done in Geojit. After recruitment and pick the new hands are given on the job training at the unit level. All workers are unploughed as trainers for three months to one year. Later they are absorbed as ineradicable workers considering their performance. Promotion Promotion is the transfer of an employee to a new position which comments high pay, perquisite status both at work and the community outside and fringe benefits perhaps the greater job warrantor. And more aged position from which a person render better service to his company. His duties, responsibilities, status and pay also increase.Company gives keen attention with regard to promotion. Wage structure Wage structure is different for different position Allowances turn most important component of wage package is dearness allowance, which is salaried to counterpoise the rise in prices. Allowances like conveyance, house rent etc. Employees provident fund Company follows contributory provident fund. The workers pass on some percentage o f their wage (basic pay + DA) and the management contributes at an equal rate. intentness welfare fund There is a labor welfare fund in which the employee contributes some rupee per head and the employer contributes at double to the same.The fund enables the subscriber to get children treatment of self and dependents etc… Thus all employees are covered social security schemes of government, enabling education of children of workers etc. gratuity Employees are eligible for the gratuity based on payment of Gratuity Act, 1972 eudaimonia to workers Rest room A rest mean is covered provided to employees to relax at concerned time. Facilities of relaxing The company also provides siting facilities for workers when they are getting interval or lunch. Health One of the important thing is that the employees general health both physical and mental should be cared.The factors which influence the general health of the worker can be divided into two broad groups. 1) Those which are asso ciated with his working environment 2) Those which he shares with the rest of the community Cleanliness The company is kept calorie-free and free from effluvia. Accumulation of dust take by proper drainage facility made in the chemical treatment. Walls, doors and windows shall be repainted or varnished at least(prenominal) once in three years Disposal of waste and effluence impelling arrangement shall be made for the disposal of waste. It does not harm any local people in any way. respiration and temperatureEffective arrangements shall be made for ventilation and temperature so as to provide comfort to the workers and prevent injury to their health. Adequate ventilation is made for fresh air. Air condition is provided for every room. Dust and fires Effective management shall be taken preview the inhalation and assemblage of dust and fires or other impurities in parities at workplace. Lighting The state government may prescribe standards of proper synthetic nature lighting fac ilities are included. tipsiness water There shall be efficacious arrangements for some drinking water for worker at convenient points.FINANCE AND ACCOUNTS Finance is the lifeblood of any organization. It deals with both the acquisition as well as ‘allocation of funds. Hence finance section assumes a great role in this organization. A finance department in an organization is responsible for maintaining fair and just story, working capital management, long term funding decision making, costing etc. The finance department provides authorisation and control to all other subsystems to enforce money more effectively through a well-designed mechanism the major functions of a finance department can be grouped as follows:- )Preparation of financial tale 2) Providing sufficient funds to all departments. 3) hard currency flows within the firm 4) Cash promise and budgeting 5) Analysis of transactions conducted by each branch office 6) Pay in and Pay out DUTIES AND RESPONSIBILITI ES honcho financial officer is the head of the finance department the entire financial operationsare controlled and coordinated by C. F. O. The entire reports are submitted before him and it is his duty to take appropriate steps. He is support by knob Manager Finance. The general accounts of the company are managed by the Chief Manager.Preparation of reports and statements also conies under his duty, matters concerning pay in and pay out are also determined and analyzed by Chief Finance Manager. The Chief Manager is help by Manager Finance. Below him there are two assistant managers, four executives and three junior executives. It is the duty of these people to record and analyze the normal accounts and transactions of a day and to report it to Chief Manager Finance. HIERARCHY OF AUTHORITY oldtimer FINANCIAL military officer school principal trade OFFICER (fig-1)Department structural hierarchy jr. EXECUTIVE EXECUTIVE ASSISTANT MANAGERMANAGING OFFICER The departmentis conce rned with the provisions and use of account information to managers within organizations, to provide them with the basis to make informed business decisions that will allow them to be better  outfit in their management and control functions. The score department jointly performs the financial function of Geojit Functions of accounting department include preparing, checking and accounting the following vouchers and bills. ? Cash receipt and cash payment. ?Bank receipt and bank payment. ? leverage journal. Journal voucher. ?Preparing debit/credit notes. update vouchers in computer system. ?Preparation of atonement statement such as bank, party accounts etc. ?Maintain and safe imprisonment of vouchers, records, ledgers and registers. ?Review of the general ledger and sub ledger and reconciliation. ?Ensure safety shackles of cash and unused cheque. ?Maintain the fixed asset register and ensure proper filling of the bills of purchase, installation certificate etc. for th e tax purpose. ?Ensure compliance of the various commitments for the borrowings and adherence of the schedule for the repayment of the interest and the principal.OPERATIONS DEPARTMENT The past few decades have given-emphasis to operations functions mainly because it is the important subsystem of an organization and is responsible for customer satisfaction. As this department deals directly with customer satisfaction the company requires careful policies and procedures to carry out the activities under the operations department so that the services provided by them must be of a specific quality. The operations department of Geojit is again subdivided into five according to the services they deal with. They are 1) happen management ; clearing and settlement ) Compliance 3) Commodity 4) Branch operations 5) Depository A study of each of these subdivisions is made their hierarchy, function of each official and the findings are noted in the coming pages. RISK MANAGEMENT ; elucidation A ND placateMENT This is one of the subdivisions of the operations department. As stated earlier the operations departments are subdivided according to the functions they perform. Hence it is this subdivision of operations department which deals with the function of management of funds that arise from trading.Though buying and selling of shares take place daily in stock exchanges, settlements of transactions is executed for a specified no: of days after club daily transactions for the entire period. This is known as settlements cycle. For example the beginning of a new settlement is on Wednesday of every week in N. S. E and it ends on next Tuesday. So it is the duty of this subdivision of the operations department to keep the recordsregarding transactions of each customer analyze whether he had made all the transactions in a proper way or not.It is the duty-of this department to check whether a person has paid the amount completely, if he had bought any shares and also to check wheth er the person is paid completely if he had sold the shares through Geojit. The chief manager (Risk and settlement) stands up in the hierarchy of the department and hence he is the head of the department. He controls and coordinates all the functions of this subdivision. Risk management of funds (of company and its branches) is one of the major functions. The chief manager is assist by the senior manager (clearing and settlement).The senior manager (clearing and settlement) deals with the process of buying andselling of shares and thereby maintaining proper funds. There is an Asst. Manager under himwho checks the B. S. E operations. The Asst. Manager is assisted by three ‘senior executives further there are executives junior executives and office assistants to help the topmanagement. A diagrammatic representation of the hierarchy of this departmental subdivision is given on next page. MANAGEMENT ; CLEARNING ; SETTLEMENT CHIEF MANAGER (RISK) SENIOR MANAGER (CLEARING ; SETTLE\r\ n'