PRESENTATION ON INVESTOR AWARENESS

1. PRESENTATION ON INVESTOR AWARENESS

2. INVESTMENT OPTIONS AVAILABLE IN THE MARKET • SHARE MARKET • MUTUAL FUNDS • BONDS • BANKS • OTHERS Compiled by - CA Vivek Sharma

3. WAYS TO INVEST INTO SHARE MARKET / MUTUAL FUNDS • PRIMARY MARKET – IPO/NFO • SECONDARY MARKET – STOCK EXCHANGES Compiled by - CA Vivek Sharma

4. LAWS AND RULES TO BE FOLLOWED BY THE COMPANIES/STOCK EXCHANGES • SEBI GUIDELINES • SCRA • CDSL/NSDL NORMS • STOCK EXCANGE RULES AND REGULATIONS • COMPANIES ACT/ROC, Etc. Compiled by - CA Vivek Sharma

5. ALL THESE FACTORS NEED TO CREATE AN INFORMED AND ENLIGHTENED INVESTOR, WHO KNOWS WHAT PRECAUTIONS TO TAKE WHILE DEALING IN THE MARKET AND WHERE TO GO IN IN CASE OF ANY TROUBLE. Compiled by - CA Vivek Sharma

6. INITIAL PUBLIC OFFERING - IPO IPO means when the company issues the shares in the market for the first time. This means that in the case of IPO the investor is dealing directly with the company, which is issuing its shares. In such case document available for inspection is the Prospectus of the issue, which lays down the details about the issue. Compiled by - CA Vivek Sharma

7. Do’s in case of IPO Check the pricing of the issue. Is it aggressive or conservative? Check out the promoter’s track record, performance of other group companies and Promoter’s interest in the company. Understand Issuer Company’s Balance Sheet and Profit & Loss Account by paying attention to the total turnover and Profit After Tax (PAT) figures, the reasons for variances. Carefully examine the reasons for sudden increase in the top line or sudden increase in the profits. Read ‘Risk factors’ carefully and try to do an impact analysis of the critical risk factors. Compiled by - CA Vivek Sharma

8. Know about the major shareholders of the company. Whether the Institutional Investors have already invested in the company or not? Analyse carefully. Carefully examine the reasons for which the IPO is coming. Is the issue for general corporate purpose, or to finance a new project or for an expansion/diversification project? Or is it for retiring a debt? Look carefully. Find out whether the listed group of companies have been diligent in filing their returns with various Regulatory Bodies. The prospectus discloses all major litigation cases filed against the Company’s Directors and Promoters, as well as against group companies. Avoid companies that are deeply mired in litigations. Check out outstanding dues and defaults to lenders and depositors. Check IPO Grading assigned by the Credit Rating Agency, if any. Compiled by - CA Vivek Sharma

9. Don’ts in case of IPO Do not allow others to take decisions on your behalf. Do not invest on the basis of market tips. Don’t underestimate risk or overestimate gains in IPO’s Don’t invest because of ‘Brand’ or corporate image but always remember that you are investing in a company. A company may have a hugely popular brand, but may be bleeding financially. Moreover, a high-flying company may still be a risky losing proposition if its issue has been aggressively priced. Compiled by - CA Vivek Sharma

10. Do not invest based on bull run of the market index / scrips of other companies in the same industry. Do not invest all your money in one company. Keep your portfolio diversified. Compiled by - CA Vivek Sharma

11. Dealing in the Secondary Market Secondary Market means the dealing of shares through Stock Exchanges or between shareholders amongst themselves. While dealing through the Stock Exchanges there are brokers and DP’s acting as mediators, there is no such body when shares are transferred off-market. As in such a case the company is not involved in between there is a need to take extra care, while making such transactions. Compiled by - CA Vivek Sharma

12. Essentials to Deal in Securities Market To Deal it the securities market it is essential for an investor to open two types of accounts – 1) A Demat account with any Depository Participant, for holding shares in electronic form on behalf of the shareholder. It works in the similar manner as our saving bank account is maintained to hold our money. 2) A trading Account with any Broker registered with any Stock Exchange to buy and sell shares on your behalf. Compiled by - CA Vivek Sharma

13. These days most DP’s are also registered with Stock Exchanges as brokers as well. This provides us with the option to open a Trading as well a Demat account with the same entity. This provides ease of transfer of shares in case of sale and purchase; although it is not by any means necessary to do so. One can maintain a Demat account with a different entity and a Trading Account with a different entity. Compiled by - CA Vivek Sharma

14. Essentials for opening a Demat/Trading A/c Completely filled Form One coloured Photograph Proof of Identity Proof of Address Copy of PAN card Duly executed agreement on a Stamp Paper between the Client & Depository Participant/Broker Banker verification Compiled by - CA Vivek Sharma

15. Do’s and Don’ts while dealing in securities market DO’s : PRE-ACCOUNT OPENING • Always deal with market intermediaries registered with SEBI/Exchanges. • Its is very important that one should make himself/herself familiar with the rules, regulations, byelaws and circulars issued by Stock Exchanges/SEBI before entering into and/or carrying any transaction. • Transact only through Stock Exchanges. • Please carry out due-diligence before registering as client with any intermediary. Clients should carefully read and understand the contents stated in the Risk disclosure document, which forms part of investor registration requirement for dealing through brokers in stock market. Compiled by - CA Vivek Sharma

16. Clear all your doubts by raising your queries with the Relationship Manager prior to opening an account. DON’Ts PRE-ACCOUNT OPENING • Do not start trading until you have read and understood the Risk Disclosure Document and Member-Client Agreement. Compiled by - CA Vivek Sharma

17. DO’s ACCOUNT OPENING • Please read and understand and thereafter execute the Member-Client Agreement with the DP, setting out the terms and conditions clearly. • Enter accurate and complete details in the form, fill up all fields. Do not leave any spaces blank. • All information provided should be factually correct and accurate since this will form the basis of your relationship with your DP • Read and understand every document in the Registration kit carefully before signing. • Please provide accurate Email ID, Client ID, DP ID, Mobile Number, Contact Details and Bank account number. Compiled by - CA Vivek Sharma

18. The correspond address should always be updated. • Submit your Permanent Account Number (PAN) • Understand the utility of maintaining a running account before signing the authorization for the same. Maintaining a Running Account with the same DP is not compulsory. • Ensure that all details are correctly mentioned in the welcome letter sent by your DP after account opening. DON’Ts : ACCOUNT OPENING • Do not sign the Member- Client Agreement without clearing your doubts in respect thereof. • Do not fill in wrong or incomplete details. Do not overwrite, cancel, misspell the details. Compiled by - CA Vivek Sharma

19. DO’s PRE-TRADING • Adopt trading / investment strategies commensurate with you risk bearing capacity, as all investments carry risk, the degree of which varies according to the investment strategy adopted. • Assess the risk-return profile of the investment as well as the liquidity and safety aspects before making and/or acting upon your investment decision. • Make investments based on your sound reasoning, after taking into account all publicly available information, fundamentals and information made available. • Check the veracity of the information available. • Access the website of  Companies and Regulators for information. Compiled by - CA Vivek Sharma

20. Keep copies of the Member Client Agreement and your trading account related documents. • Familiarise yourself with the rules, regulation and circulars issued by stock exchanges/SEBI before carrying out any transaction. • Ask all relevant question and clear your doubts with your broker before transacting • Please be informed that there are no guaranteed returns on investment in stock markets. Investment in Capital Market are subject to market risk. • Ensure that you have adequate balance before you buy. • Ensure that you are holding securities before you sell. • Exercise due caution while trading in illiquid shares or penny stocks or Z, T2T category stock. Compiled by - CA Vivek Sharma

21. DON’Ts PRE-TRADING • Do not trade in any product without knowing and/or understanding the associated risks and rewards. • Do not be influenced by information which is not originating from an appropriates source. • Do not believe any promises made about Assured Returns by DP’s employees or Sub-Brokers or Authorized Persons or Marketing Associated. • Do not rely on any implicit/explicit promise made by the issuer or any third party on returns. • Do not be influenced into buying fundamentally unsound companies (penny stocks) based on sudden spurts in trading volumes or prices or non-authentic favorable looking articles/stories. Compiled by - CA Vivek Sharma

22. Do not match/ synchronize trades with any other person for any thinly traded shares. • Do not be misled by rumors circulating in the market. • Do not indulge in any manner including manipulation of price of any scrips. • Do not follow the herd or play on momentum it could turn against you. • Do not be misled by so called hot tips. • Do not undertake deals for others or trade on your own name and then issue cheques from family members/friend accounts. • Do not pay in cash or do not issue a cheque in the name of any employee of the Broker or any other person in respect of the transactions. Compiled by - CA Vivek Sharma

23. Do not get carried away by luring advertisements, if any. • Do not try to time the market. • Do not leave signed blank delivery instruction slips (DIS) of your depository account lying around carelessly or with anyone. • Do not sign blank DIS and keep them with Depository Participant or broker to save time. Remember your carelessness can be your peril. • Do not invest based on bull run of the market index/ scrips of other companies in same industry/ issuer company. • Do not start trading before reading and understanding the Risk Disclosure documents. • Don’t get misled by guarantees of repayment of your investments through postdated cheques. Compiled by - CA Vivek Sharma

24. DO’s TRADING • Call on the landline numbers of your broker and give clear and unambiguous instructions while placing orders over the phone. In case you visit the broker, kindly give your orders in writing. • Be vigilant in your transactions • Be aware of the risk associated with your Cash Market and Futures & Options positions in the market and margin calls on them. In case of inadequate margin or nonpayment of margin in your account, your positions will be squared off by the Risk Management Team. • Please bear in mind that while the usually the broker informs you in case of a margin call, it is your responsibility to maintain margins. Broker will square up outstanding position in case of shortfall in margin and delay in payments. Compiled by - CA Vivek Sharma

25. Maintain secrecy of your password in case of Internet trading, since you will be solely responsible for all transactions effected from its usage. • The password should be distinct & periodically changed to ensure security. • If at any point of time you receive response for resetting password against request which has not been made by you, you may contact DP immediately. Compiled by - CA Vivek Sharma

26. DON’Ts TRADING • Do not give instructions which are not clear. They should be given verbally over recorded phone lines or in writing. • Do not forget to take note of risks involved in the investment. • Do not reveal your password to any other person. • Do not engage your self in any activity which is in the nature of intermediary such as sub-broker without proper registration with SEBI/Exchanges. Compiled by - CA Vivek Sharma

27. DO’s DEPOSITORES • Handle Delivery Instruction Slips (DIS) Book issued to you carefully. • Insist that the DIS numbers are pre-printed and you account number (client id) be pre-stamped. • While sending securities for demat, record the distinctive numbers of the securities sent. • Check the demat performance of the issuer company with your DP before deciding to send certificates for demat. • Scrutinize minutely both the transaction and the holding statements that you receive from your depository participant. • Always mention the details like ISIN, number of securities accurately. If in doubt, contact Depository Participant or your broker. Compiled by - CA Vivek Sharma

28. Authorise any corrections, over-writing or cancellations on the instruction slips by signing against the same. • Ensure that all joint holders of the demat account sign the slip. • If there is space for multiple instructions and it is not used fully, please strike out the blank space for furnishing securities details. • Avoid over-writing cancellations, misspellings, changing of the name and quantity of securities. • In case you are not transacting frequently make use of the freezing facilities provided for your depository account. Compiled by - CA Vivek Sharma

29. DON’Ts DEPOSITORIES • Do not issue depository delivery instruction slip from any other family members/friends accounts. Issue the DIS only from your own depository account. • Do not sign blank Delivery instruction slip(s) while meeting security pay in obligation. Compiled by - CA Vivek Sharma

30. MUTUAL FUNDS WHAT IS A MUTUAL FUND? A Mutual Fund is a Trust that pools the savings of a number of investors who share a comman financial goal. Anybody with an investible surplus of as little as a few thousand rupees can invest in Mutual Fund. These investors buy units of a particular Mutual Fund Scheme that has a defined investment objective strategy. Invests The Fund Manager in different types of securities Income Earned is distributed to the unitholders Dividend + NAV Appreciation Compiled by - CA Vivek Sharma

31. TYPES OF MUTUAL FUND SCHEMES Mutual Funds can be divided two basis By StructureBy Investment objective • Open ended schemes i) Growth Schemes • Closed ended schemes ii) Income Schemes iii) Balanced Schemes iv) Money Market/Liquid Schemes Other Schemes – Tax Saving Schemes Special Schemes Compiled by - CA Vivek Sharma

32. REASONS TO INVEST IN MUTUAL FUNDS Following are the advantages of investing in Mutual Funds: • Professional Management • Diversification • Convenient Administration • Return potential • Low Costs • Liquidity • Transparency • Flexibility • Multiple options • Well Regulated Compiled by - CA Vivek Sharma

33. STEPS TO INVEST IN MUTUAL FUNDS • Identify your investment needs • Choose the Right Mutual Fund • Select the ideal mix of Schemes • Invest Regularly • Keep your Taxes in mind • Start Early • Buy a Mutual Fund Compiled by - CA Vivek Sharma

34. YOUR RIGHTS AS A MUTUAL FUND UNIT HOLDER As a unit holder in a Mutual Fund scheme coming under the SEBI (Mutual Funds) Regulations, you are entitled to: • Receive unit certificates or statements of accounts confirming your title within 30 days from the date of closure of the subscription under open-ended schemes or within 6 weeks from the date your request for a unit certificate is received by the Mutual Fund; • Receive information about the investment policies, investment objectives, financial position and general affairs of the scheme; • Receive dividend within 30 days of their declaration and receive the redemption or repurchase proceeds within 10 days from the date of redemption or repurchase; Compiled by - CA Vivek Sharma

35. Voting in accordance with the Regulations to: • Change the Asset Management Company. • Wind up the schemes. • To receive communication from the Trustee about change in the fundamental attributes of any scheme or any other changes which would modify the scheme and effect the interest of the unitholders and to have option to exit at prevailing Net Asset Value without any exit load in such cases. • Inspect the documents of the Mutual Funds specified in the scheme’s offer document. Compiled by - CA Vivek Sharma

36. THANK YOU Compiled by - CA Vivek Sharma