Prestige Institute of Management & Research, Indore

(An Autonomous Institution Established in 1994, Accredited with Grade ‘A++’ NAAC (UGC)
ISO 9001: 2008 Certified Institute, AICTE / UGC Approved Programs affiliated to DAVV,
Indore)

(Session2020 – 2022)

Summer Internship Report On

“Analysis of Stock Market at Arihant Capital”

Faculty Mentor: Submitted By:

Dr. Shailendra Gangrade Khyati Yadav
MBA FA II B
121813351

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 STUDENT DECLARATION

I, Khyati Yadav, hereby declare that the presented Summer Internship Project Report titled
“Analysis of Stock Market at Arihant Capital” is uniquely presented by me after the
completion of 45 days from 29.06.2021 to 14.08.2021 work at Arihant Capital Markets ltd,
Indore.

I also confirm that the report is prepared only for my academic requirement and not for any other
purpose. It must be not be used with the interest of opposite party of the corporation.

I also hereby declare that I have read and understood the evaluation method (rubric) of Summer
Internship Project.

……………………………

Khyati Yadav
MBA FA II Semester – B
Scholar No. 1121813351

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 CERTIFICATE

This is to certify that Khyati Yadav, the student of Master of Business Administration
FinancialAdministrationprogram of Prestige Institute of Management & Research, Indore has
completed Summer Internship Project Report titled “Analysis of Stock Market at Arihant
Capital” under my guidance and supervision. As per my knowledge the work carried out by heris
original and genuine. I wish further success to her.

……………………...
Dr. Shailendra Gangrade

Prestige Institute of Management

& Research, Indore

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 ACKNOWLEDGEMENT

It’s a greatprivilege that my internship happened in a such a well-organized and diversified

organization.
First of all, I would sincerely like to thank Mr. Anirudh Sharma (Corporate Trainer at Arihant
Capital, Indore) for his valuable guidance and kind cooperation during the project. I Am highly
grateful for the help provided by Anirudh sir in various forms.
I am also greatly thankful to my parents, all college staff and my friends for helping me directly
or indirectly in preparing my project.

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 CONTENTS

S.NO. TITLE PAGE NO.

1. Chapter 1:About the Industry

Chapter 2: About the Organization

2. 2.1 History of the Organization and Objectives
2.2 Organization Structure

Chapter 3: Departmental Description

3.1 Finance Department
3.2 Operation Department
3.
3.3 Human Resource Department
3.4 Marketing Department
3.5 Training & Development Department

Chapter 4: Strength & Weaknesses of the

Organization
4.
4.1 Strength of the Organization
4.2 Weakness of the Organization

Chapter 5: Learning & Weekly Overview of

the Internship Activities
5.
5.1 Learning from Internship
5.2 Weekly Overview

6. Chapter 6: Conclusion & Suggestions

Appendices & References

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 CHAPTER - 1
ABOUT THE INDUSTRY

Finance is a broad term that describes activities associated with banking, leverage or debt, credit,
capital markets, money, and investments. Basically, finance represents money management and
the process of acquiring needed funds. Finance also encompasses the oversight, creation, and
study of money, banking, credit, investments, assets, and liabilities that make up financial
systems.
The strategic use of financial instruments is key to the success of every business. For every
entrepreneur or business activity, finance (capital and funds) is required as without it the
entrepreneur cannot function. Financial trends also define the state of the economy on a global
level, so central banks can plan appropriate monetary policies.

The financial sector is a section of the economy made up of firms and institutions that provide
financial services to commercial and retail customers. This sector comprises a broad range of
industries including banks, investment companies, insurance companies, and real estate firms.

A large portion of this sector generates revenue from mortgages and loans, which gain value as
interest rates drop. The health of the economy depends, in large part, on the strength of its
financial sector. The stronger it is, the healthier the economy. A weak financial sector typically
means the economy is weakening.

Many people equate the financial sector with Wall Street and the exchanges that operate on it.
But there's much more to it than that. The financial sector is one of the most important parts of
many developed economies. It is made up of brokers, financial institutions, and money markets—
all of which provide the services needed to help keep Main Street functioning every day.

In order for an economy to remain stable, it needs to have a healthy financial sector. This sector
advances loans for businesses so they can expand, grants mortgages to homeowners, and issues
insurance policies to protect people, companies, and their assets. It also helps build up savings for
retirement and employs millions of people.

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The financial sector generates a good portion of its revenue from loans and mortgages. These
gain value in an environment where interest rates drop. When rates are low, the economic
conditions open up the doors for more capital projects and investment. When this happens, the
financial sector benefits, meaning more economic growth.

India has a variegated financial sector which is experiencing rapid expansion, both in terms of the
healthy growth of existing financial services firms and new market entry entities.
The industry comprises commercial banks, insurance companies, financial non-banks,
cooperatives, pension funds, mutual funds, and other smaller financial institutions.
However, India's financial sector is predominantly a banking sector with commercial
banks accounting for over 64 per cent of the financial system's total assets. India's government
has introduced several reforms to liberalize, regulate, and enhance that industry.

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 CHAPTER – 2
ABOUT THE ORGANIZATION

2.1 History of the Organization

 (1992-95) Incorporated as a stock broking firm and acquired membership of NSE.
 (2000-02) Launched Depository Services and took NSE membership Established
Corporate Office & Institutional Desk in Mumbai.
 (2005-06) Acquired commodities broking license, launched online trading portal,
Launched PMS Services.
 (2007-08) Commenced Distribution of Personal Finance Products Insurance & Bonds.
Launched IPO and MF Services, acquired license for currency derivatives trading.
 (2009-10) Launched Currency Derivatives trading and Interest Rate Future Broking
Services Arranger of NHAI & REC Bonds.
 (2011-15) ‘Best Emerging Broker of India’ at the Financial Leadership Awards, Forbes
Asia – ‘200 best Under a Billion’ list. Awarded by BSE & NSDL Launched mobile
trading and mobile back office.
 (2016-17) Established IBU (IFSC), NSDL STAR Performer Award 'Top performer in
New Accounts Opened', Krishi Pragati Award NCDEX &NSDL STAR Performer
Award 'Top performer in New Accounts Opened'.
 (2019) Received ISO 9001:2015 Certification.

2.2 Background
Industry Name – Finance & Investments
House Name – Arihant (Shreyans)
Year of Incorporation -1992

2.3 Company Overview

 Every member of Arihant works for the benefit of the client
 Provides investing and trading services to over 1.35 lakh customers.
 There are 750 plus investments centers that are spread over 175 plus cities in India.

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2.4 Objectives
 The Value to which we aspire can be summarized in 5 principles:
 Integrity & Transparency
 Client Commitment
 Excellence
 Innovation
 Respect for team

2.5 Vision
The vision is to provide best investment advice and to grow with the growth of the clients and to
be recognized by our quality investment insight, client relationship and to be most trusted firm in
the financial services industry.

2.6 Mission
The mission is to help create wealth by offering them objective advice, range of investment
products and services and best unmatched research and leading-edge tools.

2.7 Philosophy
 Integrity and Transparency in all transactions.

 Achieving success through client’s growth.

     Making financial services more affordable, understandable and available to all.

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2.2 Organizational Structure

Ashok Kumar Jain

(Managing Director)

Anita Surendra
Gandhi
(Whole Time
Director)

Akhilesh Rathi Sunil Kumar Jain

(Non – Executive (Non – Executive
Director) Director)

Ashish Maheshwari Parag Shah

(Non – Executive (Non – Executive
Independent Independent
Director) Director)

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 CHAPTER - 3
DEPARTMENTAL DESCRIPTION

3.2 Operation Department

 Product & Services

Product Portfolio

Core Product Investment Related Products

Equity Derivatives Mutual Funds

Currency Derivatives

Other Services are also provided by Arihant Capital:

For Individuals:
Commodities, IPO, Mobile Trading, Online Trading, Private Client Group (PCG), NRI Services,
Depository Demat Account

For Corporate & Institutions:

Merchant Banking, Investment Banking, Intuitional Broking, FPI, Corporate Investment
Services.

Currency:

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Arihant Currency Derivatives services offers forex trading through multiple trading channels
creating unique investment opportunities and limitless creativity for hedging, speculation and
portfolio diversifications.
Who can trade in Currency?
 Corporate & Individuals (Example: Importer &Exporter)
 Investors, Hedgers, Speculators and Arbitrageurs.

Hedging Currency with Derivatives:

Currency is traded in pairs consisting of a “base currency” and a “quote money”. A Forex trade
involves buying one currency while simultaneously selling another. Importers and Exporters can
use currency derivatives for hedging their offshore payments and receipts hence safeguarding
themselves from unexpected currency movements.

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Core Products
Equity
When you purchase stocks (Commonly referred to as shares or equities) you become a part owner
of the business. This normally entitles you to vote at the shareholder’s meeting allows you to
receive any profits (referred to dividends) that the company allocates to its owners .so if you want
to invest, you can buy the shares of that particular company from the stock exchange at the
current share price, provided that the company is listed on the stock exchange.

Equities are a part, if not the cornerstone, of nearly every investment portfolio. Compared to
bonds or fixed deposits, stocks can often provide the opportunity for relatively high potential
returns but of course it comes at a price high risk.

Equity Delivery Equity Intraday

STT 0.1%On Both Buy and 0.025% on sell side
Sell
Service Tax (Including 14.50% On Brokerage 14.50% On Brokerage
Swachh Bharat Cess and transaction charge. and transaction charge.
(SBC))

Arihant Capital deals into equity and derivative market through BSE and NSE. It trades into
currency market through MCX-SX. They also provide commodity trading on MCX and NCDEX.
Arihant has its own DP service and is registered as a DP with NSDL and CDSL.

The full product and services of this broking company include security and commodity trading,
Financial & investment planning, wealth management, mutual funds, IPOS, Research services
and NRI/FPI services and a lot more. This full-service broker serves individuals, corporate and
financial students as well.

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Derivatives

A Derivative is a contract between two or more parties whose value is based on an agreed-upon
underlyingfinancial asset (like a security) or set of assets (like an index). Common underlying
instruments include bonds, commodities, currencies, interest rates, market indexes, and stocks.

Derivatives trading solutions, including options and futures, offer the potential to profit from your
view of future price fluctuations (both rise and falls) without holding actual shares or assets.
Derivatives lets you trade in a large number of stocks and Indices for a small margin. They are
often used by investors as a risk management tool to protect the value of their portfolio from
adverse market movements.

How it works–

Features:

 Futures give you the right to buy or sell shares or market indices at a specified time in the
future at a specified price.
 This can be traded by a team of certified dealers or online through Air-Trade App.

Who should go in for Futures?

 Experienced traders looking for opportunities to speculate on share price movements or

movements in market indices.
 Investors looking for high exposures to a stock on a smaller outlay.
 Experienced futures traders who are looking to manage the risk of price fluctuations.

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Options:

Options give you the right but not the obligation to buy or sell the underlying asset. It offers you
the potential to profit from share price movements (both rises and falls) without necessarily
holding the underlying shares. They can be divided into a call (when you buy the underlying) or
put (when you sell the underlying) options.

Buying an option can be regarded as equivalent to talking out insurance – you pay out a premium
in advances and if a specified event occurs then that’s the time you get paid.

 They can be bought or sold online via Air-Trade or directly through a dealer.
 They give you the right, but not the obligation, to buy or sell an underlying share at a
specific price on or before a specific date.
 Can be traded for a small premium, which gives you the right in case of call/put option
(obligation in case of writing of any option) to purchase/ sell a pre-determined number of
shares at a pre-determined price.
 Allow you to generate income by short-selling or writing options against your existing
shares.
 Are very good hedging instruments.

Trading in options for:

 Investors willing to take higher risk, looking for greater potential returns over shorter
terms.
 Investors who have strong views on the market and its future movements and want to take
advantages of the same.
 Investors who want to insure their current shareholdings against potential losses.
 Investors who want to generate income from their existing shares.
 Investors looking to profit from share price movements without having to own the
underlying shares.

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Investment Products
Mutual Funds:
Allows Investments in small sums in a diversified portfolio.
 Mutual Funds are managed by professionals and experts manage our portfolio hence they
are ideal for those who don’t have time or known-how of investing in the market.
 Whether we are looking for safe investments or want to take risk, mutual funds offer
solutions suited to our needs from many of our scheme’s options to choose from.
 We can easily redeem our fund at the market price anytime as we need cash.
 Various tax saving funds that offer professional management with the benefit of tax
saving.
 All the information of the portfolio is available online through monthly factsheets and
funds websites.

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SIP (Systematic Investment Plan)

It aims at wealth creation by investing small sums of money at regular intervals a in a predefined
mutual funds scheme allowing rupee cost averaging with the added benefit of power of
compounding. It inculcates the habit of disciplined investing that helps us to plan for our future –
Child’s education, buying a house.

WHY SIP?

 Disciplined Investment: It helps us save regularly and thus inculcates a sense of

discipline.
 Power of Compounding: Small, regular investments lead to large accumulation of
wealth over time hence harnessing the power of compounding.
 Rupee cost averaging: SIP ensures us to invest at every market level hence saving us
from the biggest mistake that every investor makes – buying high selling low. This
combined with the power of compounding works wonders to our portfolio.

NRI and FPI Investment Services

NRI Investment Services:

Portfolio Investment Scheme or PIs is a scheme of Reserve Bank of India that enables NRIs and
OCBs to purchase and sell shares and convertible debentures of Indian companies on a
recognized stock exchange by routing all such purchase/sale transactions through their NRI
Savings Account with a designated bank branch. For this purpose, the NRI/PIO has to apply to a
designated branch of a bank, which deals in Portfolio Investment.

FPI Investment Services:

Foreign portfolio investment (FPI) consists of securities and other financial assets held by
investors in another country. It does not provide the investor with direct ownership of a
company’s assets and is relatively liquid depending on the volatility of the market.

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Eligibility of FPIs:

Category-III FPI shall include a person who:

 Is not resident in India (includes Corporate Bodies, Trusts, Individuals, Family Offices,
etc.).
 Is resident of eligible countries.
 Is not an NRI.
 Is legally permitted to invest in securities outside his country.
 Has sufficient experience, good track record, is professionally competent, financially
sound, generally good reputation of fairness and integrity.

3.2 Finance Department

"Finance" is often defined simply as the management of money or “funds” management. Modern
finance, however, is a family of business activity that includes the origination, marketing, and
management of cash and money surrogates through a variety of capital accounts, instruments, and
markets created for transacting and trading assets, liabilities and risks. Finance is conceptualized,
structured, and regulated by a complex system of power relations within political economies
across state and global market.

 Arihant Capital helps their clients by gathering accurate financial data for investing.
 They offer portfolio management services for their corporate clients.
 They offer different financial services to help their customers & manage their money in
the way that benefits them most: Broking, Distribution, Depository, Wealth management,
Merchant & Investment Banking.
 They offer different products like: Corporate Solutions, NRI Services, HNI Investment
Services & Investment Solutions.
 From the financial information of the company there is increase in Total Assets & Total
Revenue from the last 3 years.
 In March 2019 the profit of the organization was 15.53Cr. In March 2020 the profit of the
organization was 17.76 and at the end of March 2021 the profit was 34.75. From this we
can see that the profit of the organization is consistently increasing from the previous
years.

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3.3 Marketing Department
 Arihant Capital’s helps people to open a D-mat that holds financial securities including
debt & equity in an electronic form; they make the process of opening the account very
convenient & quick.
 They offer referral links to the existing customers & if someone opens a D-mat Account
from that link, the existing customers get some benefits from it.
 They spread awareness about the organization through different social media platform
like Instagram, Linkdin, Facebook & Twitter etc.
 They offer different internship programs in various sectors for promoting their
organization & also they give the Pre Placements Offer (PPO) to some selected students.
 Competitors of Arihant Capitals are Motilal Oswal, Sharekhan, Zerodha, Upstox, Angle
Broking, ICICI Direct, and HDFC.

3.4 Personnel Department or Human Resources Development Department

 They plan seminars for their employees to enhance their knowledge about the market
trends, which helps them to be aware about the current market.
 Learn a lot about different Equity Shares, Mutual Funds and the number of Clients that
are investing in Arihant Capital.
 They offer different investing courses in equity stock market of fundamental & technical
analysis for the existing employees.
 It build policies into system so, employees can follow them organically.
 They build confidence by giving them virtual money for trading. Hence they get the
exposure of real market.

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 CHAPTER - 4
STRENGHTH AND WEAKNESS OF THE ORGANIZATION

4.1 Strength of The Organization

 Paperless trading: From online trading to transfer of funds to accessing account

everything is automated and hassle-free.
 Unbiased investment recommendations are given to clients which is backed by in-depth
research.
 Assistance at every step of the investment process is provided to customers.
 Combination of user-friendly interface combined with the company’s trading platform.
 Maximum number of branch offices, around 650+offices.

4.2 Weakness of The Organization

 Management is carried out properly.

 Charges for online trading software per month are applied.
 Plans details are not updated online which sometimes creates a little hassle for the
customers to get the needed information online.
 Have to wait for a while before getting some relevant work to do.

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 CHAPTER – 5
LEARNING AND WEEKLY OVERVIEW OF INTERNSHIP

5.1Learning From Internship

 Basic Terminologies related with Stock Market, learned how to analyze & invest in
IPO’s.
 Learned how to invest in Equity Market (Intraday & Cash n Carry) & did the fundamental
learning of the process.
 We studied the daily market trend for investing in Equity Market through analysis on the
basis of News related to the company, to know company promoters, 52-Week High &
Low, Statements of last three years (PAT, Revenue & Assets) & SWOT Analysis.
 Learned about the brokerage calculation it includes (CGST, IGST, SGST, Stamp Duty,
Clearing Charges, Securities Transaction Fees & SEBI Fees).
 Did live trading with virtual money (One Lakh) on “STOCK TRAINER” app with the
help of our corporate trainer
 Learned about managing the portfolio of customers & try to find out profit, minimum 5%
of invested amount.
 Did a group activity in which we compared two companies IPO’s, studies their market
trend & gave our concluding analyzed answer regarding both the IPO’s.
 Asses’ different sectors of Equity Stocks for Investing (Pharmaceuticals, Finance,
Automobile & IT Sector).
 Interpret & Gain Knowledge regarding Systematic Investment Plan (SIP) that means
where how and when to invest.
 Attended different webinars of Senior Researchers of fundamental & technical analysis of
stock market.

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5.2 Weekly Overview of Internship Activities

DAY DATE WORK PERFORMED

Introduction of Financial Market
Tuesday 29.06.2021 & Structure of Indian Financial
Markets.
30.06.2021 What is Primary Market & Types
Wednesday
of Issue of Share
1st Week

01.07.2021 Basics of Initial Public Offering

Thursday
(IPO)
02.07.2021 Initial Public Offering (IPO)
Friday
Analysis
03.07.2021
Saturday Week Off

04.07.2021
Sunday Week Off

DAY DATE WORK PERFORMED

Basics of Secondary Market &
Monday 05.07.2021
Assignment of IPO Analysis
Tuesday 06.07.2021 How to Track Equity Market
2ndWeek

What is Stock Exchange &

Wednesday 07.07.2021
Participants in Trade
Discussion on IPO Analysis
Thursday 08.07.2021
Report
Friday 09.07.2021 Holiday

Webinar of Senior Research

Saturday 10.07.2021
Analyst
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 Sunday 11.07.2021 Week Off

DAY DATE WORK PERFORMED

Monday 12.07.2021 Learn about BSE, NSE Trading.

Explanation & Creation of Portfolio
Tuesday 13.07.2021
Creation
3rd Week

Wednesday 14.07.2021 Session Off

Thursday 15.07.2021 General Training Over Stock Market

Friday 16.07.2021 Trading Game with Virtual Money

Saturday 17.07.2021 Week Off

Sunday 18.07.2021 Week Off

DAY DATE WORK PERFORMED

Monday 19.07.2021 Session Off

Analysis of Upcoming IPO in Month of
Tuesday 20.07.2021
August

Wednesday 21.07.2021 EID Holiday

4thWeek

Trading Strategies & Clearing &

Thursday 22.07.2021
Settlement of Transaction.
Calculation of Brokerage in Intraday &
Friday 23.07.2021
Delivery Trades
Webinar on: Various Stocks by Senior
Saturday 24.07.2021
Research Analyst

Sunday 25.07.2021 Week Off

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 DAY DATE WORK PERFORMED

Monday 26.07.2021 Basics of Derivatives

Tuesday 27.07.2021 Types of Future Contracts in India

Concept of Margins & Future Trading

5thWeek

Wednesday 28.07.2021
Mechanism

Thursday 29.07.2021 Session Off

Friday 30.07.2021 Analysis of Trading in Derivatives

Saturday 31.07.2021 Week Off

Sunday 01.08.2021 Week Off

DAY DATE WORK PERFORMED

Discussion related to Training &

Monday 02.08.2021
Feedback Related to Corporate Trainer
Basics of Options (Contracts) & Types of
Tuesday 03.08.2021
Options
Understanding of Call Option,
6thWeek

Wednesday 04.08.2021
Calculation of BEP & Profit
Understanding Put Option, Calculation of
Thursday 05.08.2021
BEP & Profit
Practical Questions on Call & Put
Friday 06.08.2021
Options

Saturday 07.08.2021 Week Off

Sunday 08.08.2021 Week Off

7thWeek

DAY DATE WORK PERFORMED

Monday 09.08.2021 What are Mutual Funds & Types of

Mutual Funds
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 Tuesday 10.08.2021 What is Systematic Investment Plan

Wednesday 11.08.2021

Thursday 12.08.2021

Friday 13.08.2021

Saturday 14.08.2021 Week Off

Sunday 15.08.2021 Week Off

CHAPTER – 6
Conclusion & Suggestions

6.1Conclusion:
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In a nutshell, this internship has been an excellent and rewarding experience. I can conclude that
there have been a lot I’ve learnt from my work at “Arihant Capital Market Ltd”. Needless to
say, the technical aspects of the work I’ve done are not flawless and could be improved provided
enough time. As someone with no prior experience with Node is whatsoever, I believe my time
spent in research and discovering it was well worth it and contributed to finding an acceptable
solution to build a fully analysis. Two main things that I learned from this internship are that:
time-management skills, self-motivation & a good risk taker.

At last, this internship has given me new insights and motivation to prepare myself for my future
career as I can improve several things about corporate finance. I can work on my technical aspect
part so that I am able to risk for myself more confidently. I could perform certain tasks in
research better if I have more experience in the research methodologies applied in fundamental &
technical analysis.

Suggestion:
 Management needs to be handled properly.
 The plans details should be made available online and should be updated regularly for
customer benefit.
 Charges should be minimized for trading software.

REFERENCES

1. https://www.arihantcapital.com/
2. https://www.chittorgarh.com/ipo/ipo_dashboard.asp
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3. https://www.moneycontrol.com/
4. https://www.nseindia.com/
5. https://economictimes.indiatimes.com/
6. https://www.investopedia.com/
7. https://www.bseindia.com/

APPENDICES

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