HISTORY

HISTORY OF THE STOCK BROKING INDUSTRY

Indian Stock Markets are one of the oldest in Asia. Its history dates back to
nearly 200 years ago. The earliest records of security dealings in India are
meager and obscure.

By 1830's business on corporate stocks and shares in Bank and Cotton

presses took place in Bombay. Though the trading list was broader in 1839,
there were only half a dozen brokers recognized by banks and merchants
during 1840 and 1850. The 1850's witnessed a rapid development of
commercial enterprise and brokerage business attracted many men into the
field and by 1860 the number of brokers increased into 60.

In 1860-61 the American Civil War broke out and cotton supply from
United States of Europe was stopped; thus, the 'Share Mania' in India begun.
The number of brokers increased to about 200 to 250. However, at the end
of the American Civil War, in 1865, a disastrous slump began (for example,
Bank of Bombay Share which had touched Rs 2850 could only be sold at
Rs. 87). At the end of the American Civil War, the brokers who thrived out
of Civil War in 1874, found a place in a street (now appropriately called as
Dalal Street) where they would conveniently assemble and transact business.

In 1887, they formally established in Bombay, the "Native Share and Stock
Brokers' Association" (which is alternatively known as "The Stock
Exchange"). In 1895, the Stock Exchange acquired a premise in the same

1
street and it was inaugurated in 1899. Thus, the Stock Exchange at Bombay
was consolidated.

 BSE(BOMBAY STOCK EXCHANGE)

The Stock Exchange, Mumbai, popularly known as "BSE" was established

in 1875 as "The Native Share and Stock Brokers Association". It is the
oldest one in Asia, even older than the Tokyo Stock Exchange, which was
established in 1878. It is a voluntary non-profit making Association of
Persons (AOP) and is currently engaged in the process of converting itself
into demutualised and corporate entity. It is the first Stock Exchange in the
Country to have obtained permanent recognition in 1956 from the Govt. of
India under the Securities Contracts (Regulation) Act, 1956.

2
  NSE(NATIONAL STOCK EXCHANGE)

NSE was incorporated in 1992 and was given recognition as a stock

exchange in April 1993. It started operations in June 1994, with trading on
the Wholesale Debt Market Segment. Subsequently it launched the Capital
Market Segment in November 1994 as a trading platform for equities and
the Futures and Options Segment in June 2000 for various derivative
instruments.

Fig.: Online Share Trading

3
 TYPES OF SHARE TRADING

INTRA DELIVERY FUTURE OPTION

DAY

INTRA DAY

Intraday trading refers to opening and closing a position in a security in the

same trading day. This can be buying and selling to capitalize on a potential
rise in a security's value or shorting and covering the short to capitalize on a
potential drop in value. Intraday traders capitalize on small moves in the
value of a security by using "leverage" or "margin", which basically means
borrowing money. Most day trading accounts are allowed to take an initial
position in a security that is 4X the value of their account (per securities
regulations), but some professional accounts get more leverage (i.e. 10X).

DELIVERY

Delivery based trading means buying shares and holding them for certain
period of time.
The shares you bought will be in your demat account.
Once you take delivery of shares you can hold them as long as you want. To
take delivery of shares, you must have sufficient funds in your account. You
don’t get any margin to buy shares in delivery.
If you have Rs.5000 means you can buy shares worth of Rs.5000 and not
more than this.

4
FUTURE

A futures exchange or derivatives exchange is a central financial exchange

where people can trade standardized futures contracts; that is, a contract to
buy specific quantities of a commodity or financial instrument at a specified
price with delivery set at a specified time in the future.

OPTION

It is the buying and selling of stock and index options in the capital market
so as to speculate for leveraged profits in every market condition or
performs hedging to reduce portfolio risk.

DEMAT ACCOUNT

The term Demat, in India, refers to a dematerialized account. For individual

Indian citizens to trade in listed stocks or debentures. The Securities
Exchange Board of India (SEBI) requires the investor to maintain a Demat
account. In a demat account shares and securities are held in electronic form
instead of taking actual possession of certificates. A Demat Account is
opened by the investor while registering with an investment broker (or sub
broker). The Demat account number which is quoted for all transactions to
enable electronic settlements of trades to take place.

Access to the demat account requires an internet password and a transaction

password as well as initiating and confirming transfers or purchases of
securities. Purchases and sales of securities on the Demat account are
automatically made once transactions are executed and completed. It is
linked with Trading A/c and Savings A/c. You should necessarily have a
PAN card for opening such an account.

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 MAJOR PLAYERS
1. EMKAY GLOBAL FINANCIAL SERVICES LTD.(www.emkayglobal.com)
2. S S KANTILAL ISHWARLAL SECURITIES PVT LTD. (www.sharekhan.com)
3. INDIA INFOLINE
4. KOTAK SECURITIES LTD. (www.kotakstreet.com)
5. INDIABULLS (www.indiabulls.com)
6. MOTILAL OSWAL SECURITIES LTD.
7. HDFC SECURITIES LTD. (www.hdfcsec.com)
8. ANGEL BROKING
9. RELIANCE MONEY
10. ANAND RATHI
11. GEOJIT BNP PARIBAS

Dmat Charges Structure

Account Transaction Charges

Banks/Institutio Opening Maintenanc Delivery Intra-day
ns Charges e Retail HNI Retail HNI

0.18* 0.18* 0.03* 0.03*

  750 360 p.m. % % % %

  Rs. 750 Rs 300 p.a. 0.50% 0.30% 0.10% 0.05%

  Nil Rs. 200 p.a. 0.50% 0.25% 0.10% 0.02%

0.01%
0.02- 0.02- (One
  Nil Rs 200 p.a. 0.35% 0.10% 0.05% side)
Rs 555
(one-time)
or Rs 250
  p.a. Nil 0.50% 0.20% 0.05% 0.02%
Rs 0- Rs 500 Plan 1- 0.35 0.10 0.05 0.01
Lifetime

6
  Free; Plan
2-Nil(1st
Year)+Rs
300 p.a.
thereafter

 
0.075
Rs 500 Nil 0.5% 0.3% % 0.05%

Rs. 50 Nil 0.3% 0.1% 0.03% 0.01%

Rs 0 - Rs
  700 Nil 0.55% 0.25% 0.05% 0.02%

Rs 740 Nil 0.50% 0.05% 0.10% 0.05%

0.015
  Rs 750 Rs 50 p.a. 0.45% 0.15% 0.05% %

  NIL Nil 0.5% 0.25% 0.1% 0.05%

NIL Rs 500 p.a. 0.75% 0.30% 0.05% 0.03%

REGULATORY BODY
SECURITIES AND EXCHANGE BOARD OF INDIA

CENTRAL DEPOSITORY NATIONAL SECURITY

SERVICES LTD (CDSL). DEPOSITORY SERVICES LTD
(NSDL).

7
 EMKAY GLOBAL FINANCIAL SERVICES LTD.

INTRODUCTION

Setting paradigms and then shifting them is how we define our business at
Emkay. Guided at each step, since its inception in 1995, by the mission to
build a seamless world of Investment Opportunities, Emkay Global, along
with Emkay Commotrade Ltd., Emkay Insurance Brokers Ltd., and Emkay
Fincap Ltd., offers comprehensive Investment solutions to more than a lac
satisfied customers throughout the length and breadth of the country.

From Equity to Commodities, from Financial Advisory to Investment

Banking, from Mutual Funds to Wealth Management, from Insurance
Broking to IPOs, we have tried to offer the most comprehensive avenues for
investments.

COMPANY HISTORY

Emkay Global marked its genesis as Emkay Share and Stock Brokers Private
Limited. The company was promoted by two enterprising Chartered
Accountants, Mr. Krishnakumar Karwa and Mr. Prakash Kacholia, on
January 24, 1995. The company subsequently got listed on the BSE and the
NSE in 2006.

8
The journey that was embarked upon 20 years ago has enabled Emkay to
grow into a Rs.130 crore plus net worth company, with over 350 retail
outlets spread across the country. Emkay invites everyone to join it on this
very rewarding journey and reap the benefits of a resurgent India.

Membership: BSE, NSE, BSE Trading & Clearing Member (derivatives),

CDSL (depository participant), BSE (debt markets) and NSE Trading &
Clearing Member (derivatives).

COMPANY PHILOSOPHY

We have always believed that your success is our success. It's the only truth
of every business. And we have built our foundation around this philosophy.
Every endeavor at Emkay is to ensure success - success of its clients,
employees, partners, investors and of the society at large. And we have been
doing this since 1995. 

MISSION and VALUES

Emkay's Mission

"To provide our clients with Secure, Customised & Comprehensive financial
solutions to achieve sustained growth." At Emkay we believe
"Your Success is our Success"

9
Emkay's Values

Our Core Values

“Each day is another opportunity to take one step closer toward your goals,
your dreams, your destiny."

 To be fair, empathetic and responsive in serving our clients.

 To respect and reinforce our fellow employees and the power of
teamwork.
 To strive relentlessly to improve what we do and how we do it.
 To always earn and be worthy of our customers' trust.

CORPORATE STRUCTURE

Emkay Fincap Limited (EFL), a 100 per cent subsidiary of EMKAY, is a

RBI registered Non Deposit taking NBFC. The firm was incorporated on
May 16, 2005 for carrying out share financing activities. The company went
public on February 14, 2006.

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Emkay Commotrade Limited (ECL), a 100 per cent subsidiary of
EMKAY, was incorporated on January 5, 2006 and carries out commodity
broking business. ECL is a member of the two popular commodity
exchanges - MCX Commodity Exchange and NCDEX Commodity
Exchange. ECL offers trading in many commodities such as bullion (gold,
silver), energy (crude oil, natural gas), metals, food grains (rice, maize),
spices, oil and oil seeds and others.

Emkay Insurance Brokers Limited (EIBL), a 100 per cent subsidiary of

EMKAY, was incorporated on March 8, 2007 as a direct Insurance broker as
per the IRDA regulations. Focusing on life and non-life businesses, the
company aims to benefit from its huge existing retail client base and existing
corporate relationships.

KEY MILESTONES

 2008: Crossed the landmark of Rs.100 crore topline

 2007: Launched IRDA approved insurance broking subsidiary
 2006: Incorporated and launched RBI approved NBFC
 2006: Commenced commodity broking
 2006: Successfully launched Rs.75 crore IPO and listed on BSE/NSE
 2005: Converted into a public limited company
 2000: Executed first trade in Sensex Futures and Sensex Options
 1999: Commenced equity broking on NSE
 1996: Commenced equity broking on BSE
 1995: Year of incorporation
11
 MANAGEMENT PROFILE

KEY PERSONNEL

Mr. Krishna Kumar Karwa, Managing Director & CFO

Mr. Prakash Kacholia, Managing Director

Mr. Ajay Parmar, Head-Institutional Research

Mr. Anish Damania, Busuness Head- Institutional Equity

Mr.Atul Shah, Head- Commodities

Mr. Chirayush Bakshi, Vice President- Marketing and Business Department

Ms. Divya Gandhi, Head- eneral Insurance & Principal Officer

Mr. Hemang Mamtora, Vice President- Equity Advisory Desk

Mr. Om Ahuja, Head- Wealth anagement & Strategy

Mr. Rahul Rege, Business Head- Retail

Mr.Rajesh Sharma, Chief Operating Officer

Ms. Ruth Singh, Head- HR

Mr. Sandeep Singal, Co Head- Institutional Equities

Mr. Sandeep Sharma, Head- Investment Banking

Mr. Vijay Saraf, Vice President- Private Client Group

12
 GENERAL INFORMATION

NAME: EMKAY GLOBAL FINANCIAL SERVICES LTD.

CORPORATE OFFICE: Paragon Centre, C-06, Ground Floor,

Pandurang Budhkar Marg, Worli,
Mumbai 400013. India
Fax: +91 22 66121299

PH NO: 91 22 66121212

WEBSITE: www.emkayglobal.com

PRODUCTS & SERVICES:

 Equity
 Commodity
 Insurance
 Mutual Fund
 FOREX
 PMS
 Online Trading

BUSINESS ETHICS:

 Prevent unfair competition

 Setting new standards on an ongoing basis
 Absolute transparency

13
  Effective Execution
 Wider Reach

MARKET COVERAGE

Ground Network –

295 Franchisees and 350 branches

Covers 150+ cities in 19 states across India
Trade execution facility on BSE and NSE for
Cash as well as Derivatives
Depository/Demat account services
Personalized Emkay research advice
Uniform service standards

Emkay Global Financial Services Limited Key Data:

  Ticker: 532737 Country: INDIA

  Exchanges: BOM Major Industry: Financial

    Sub Industry: Securities Brokerage

1,241,379,000
  2010 Sales Employees: 738
(Year Ending Jan 2011).

14
  Currency: Indian Rupees Market Cap: 2,081,860,480

  Fiscal Yr Ends: March Shares Outstanding: 24,320,800

  Share Type: Ordinary Closely Held Shares: 13,422,500

Stock Data:
Current Price (6/25/2010): 85.60
(Figures in Indian Rupees)

AWARDS & ACHIEVEMENTS

Amongst the top 10 accredited brokers in India in the category of Earnings
Estimates for Sensex.

Companies at the LIPPER STARMINE AWARDS 2009 organized by

Thomson Reuters.

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Ranked 6th in the Small / Mid Cap Category as per the Asia Money Poll
2008.

SEVEN P’S OF EMKAY

 PRODUCT & SERVICES

<A> E- Broking

Technological advancements have reinvented trading procedures,

allowing electronic transactions to come a full circle. The Broking
business is not left untouched. In fact it has been one of the most
widely and successfully impacted. With online broking, it takes just a
few clicks to "buy" or "sell" units. Your bank, trading and demat
accounts are connected and all you need to do is log on to your
account at your convenience to execute the trade. The servers of the e-
broking portals are linked to the stock exchanges, facilitating trade at
live market rates. Moreover, the security systems help prevent frauds
and protect confidentiality of your account.

EMTRADE

Emkay's online-broking service 'Emtrade' offers you a convenient

avenue for e-investments in equity, derivatives, Mutual Funds and
IPOs. It integrates your banking, broking and demat accounts for easy
and prompt processing and execution of trades. Besides the
16
 convenience of trading from anywhere in the world, the portal
facilitates access to multiple depositories and banks, instant fund
transfer and trade confirmation as well as access to live quotes on
BSE (cash) and NSE (cash and derivatives), latest news update and
intraday technical and delivery calls and research reports which help
you in your decision making. We understand that different investors
have different trading requirements and therefore bring to you 2
different trading platforms to choose from - depending upon your
trading volume and frequency.

If you have a limited trading requirement, and prefer investing to

trading, the 'Emtrade-Web' software system is ideal for you. The
features of the platform include:

 Instant Loading
 Works behind a Proxy
 Live Streaming quotes
 Multiple Watch lists
 NSE & BSE Access
 Single order form for Cash and Futures and Options
 Point and Click order entry
 Hot Key Functions
 Market Depth Window
 Online Fund Transfers

If you are an active trader, 'Emtrade-XL' is the ideal trading platform

for you. It uses state of art technology to provide

17
 Fully Customizable display
 Real-Time market data
 Advanced Alert capabilities
 View multiple market watch simultaneously
 Track your orders real time
 Real time position updates
 Derivative chain: Multiple script entry at a single click
 Lock terminal option
 Trading Calls
 Historical and Intraday Charts
 Online Fund Transfers

<B>INSURANCE

Emkay Insurance Brokers Ltd. (EIBL), a wholly owned

subsidiary of Emkay Global Financial Services Ltd, believes
that "Your protection is our satisfaction". EIBL, a dedicated full
service Insurance broking firm, offers customized solutions and
personalized services for all your life as well as general
insurance requirements. We even boast of a professional Risk
Assessment / Risk Audit and Claim Assistance team. Our client
service desk can cater to any query related to your insurance
portfolio.

Lastly, as Insurance Brokers, we represent you and procure

Insurance coverage for you, your family and/ or your
18
 organization at very competitive rates. Our broking services
help you in estate creation, tax planning and retirement
planning, along with life coverage.

Services And Value Proposition

Being an insurance broker, we cater to all the insurance needs of our clients
and provide technical expertise and value enhancement to our clients. Our
list of services includes:

Life and non life insurance:

 We offer you both, life and non life policies. We first rationalize the
existing covers, and only then suggest package policies.
 Design comprehensive insurance programs such that our clients get
the maximum protection for their assets and from their liabilities.
 Invite quotations from Insurance companies
 Compile all the required information for sourcing appropriate
insurance quotes.
 Evaluate quotations received, in order to arrive at the most appropriate
cover and best rate.
 Negotiate with insurance companies for optimum premium.
 Complete all formalities and procedures for issuance of the insurance
policy.

Risk management:

19
  Firstly, we try to understand your business/ projects by collecting
details, to identify the risks and exposures associated with them.
 Visit your plant site (if required) for a physical risk inspection, to get
to know the process and hazards associated with them.
 Suggest you appropriate insurance solutions and loss minimization
measures after assessing the risks.
 Assist you in choosing the insurance company for placing insurable
risk.

Claim settlement:

 Assist in handling claims, including negotiations with surveyors and

insurer.
 We expedite the claim settlement on behalf of the insured.
 Maintain a proper record of transactions and timely renewal
reminders.

Policy reviewing:

 We review from time to time, various ongoing policies.

 Verify the policy wordings and figures with the requirements.
 Auditing the policy wordings and gap analysis.
 Amend polices if needed.

PRODUCTS OFFERED

20
For Corporates And SMEs –

Life Insurance

 Group Term Insurance

 Employer - Employee Scheme Insurance
 Group Gratuity Schemes For The Retail
 Group Super Annuation Schemes Segment -

General Insurance (Non life)

Asset / Property Insurance

 Fire & Allied Perils Insurance

 Theft & Burglary Insurance
 Machinery Breakdown Insurance
 Boiler Explosion Insurance
 Electronic Equipment Insurance
 Storage-cum-Erection Insurance
 Contractors All Risk Insurance
 Contractors Plant and Machinery Insurance
 Industrial All Risk / Mega Risk Cover
 Package Policy for Cellular Operators

Marine Insurance

 Aviation
 Marine Hull
 Marine Cargo

Consequential Insurance

 Loss of profits following fire

 Loss of profits following machinery breakdown
21
 Loss of profits following boiler explosion
 Advance loss of profits
Life Insurance

Insurance for Protection

 Term Cover policies

 Whole Life policies
 Endowment Policy
 Money Back Policy
 Riders: Accidental death, disability benefits, critical illness premium
Waiver Benefit.

Insurance for Investment

Insurance for Children
Prudent retirement planning

General Insurance (Non life)

 Vehicle
 Mediclaim
 Overseas
 Personal Accident
 Critical Illness
 Householder's Policy
 Shopkeeper's Policy
 Office Package Policy

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RISK MANAGEMENT

Our risk management department is all about taking precautions to

reduce the risk of loss and make savings on insurance premiums. We
assist you in identifying risks by analyzing the causes and thereby,
help you to adopt appropriate risk management procedures and
systems to reduce the risks. This might include fitting smoke alarms
or sprinkler systems, or extra security on windows and doors or even
trying safer working practices within the factory or more staff
training, or even practicing fire drills and evacuation procedures or
applying financial risk management techniques.

Continuous Risk Management:

 Identification of risks
 Analysis of causes
 Designing of appropriate solutions
 Execution / implementation of action plans
 Measurement and continuous monitoring

23
CLAIMS SETTLEMENT

We, at EIBL, believe in structured insurance settlement. We help our clients

with complete end-to-end services starting from notification of claim to
investigation /survey to negotiations, till the final settlement.

We have developed a Standard Operating Procedure to deal with claims. It

includes prompt filing of claim and investigation, interaction with surveyor
for survey of loss, assessment of loss, finalization of report and early
issuance of report to insurance company followed by quick and cost-
effective settlement.

DISCLAIMER
24
Insurance Is The Subject Matter Of Solicitation.

Section 41 of the Insurance Act, 1938 (4 of 1938):

"No person shall allow or offer to allow, either directly or indirectly, as an

inducement to any person to take out or renew or continue an insurance in
respect of any kind of risk relating to lives or property in India, any rebate of
the whole or part of the commission payable or any rebate of the premium
shown on the policy, nor shall any person taking out or renewing or
continuing a policy accept any rebate, except such rebate as may be allowed
in accordance with the published prospectus or tables of the insurer."

OPERATIONS PROCESS – Life Insurance

LOGIN Steps:

1. Proposal form to be duly filled with Broker Code along with all
KYC documents.

2. The original proposal form to be submitted to the Insurer with a

copy to be maintained at each Branch along with cheque and docs Xerox.

3. Application Form Copy + Cheque Copy+ Placement slip to be sent

across to H.O Operation Team (Jignesh/Sangeeta) within 2 days of
logging in the policy with Insurer.
Further, the scanned image of 1st page of Proposal Form and
cheque should be mailed to Sangeeta/Jignesh and later the hard

25
 copy as mentioned above. We will include the same in daily Login
Report that would be sent to all.

4. Operations team to confirm for non receipt of docs by mail to the

concerned Branch Manager and R.M, Keeping Niranjan and Rekha in CC
of all these mails after reconciling the same with the business
Login Mis received from Branches.

5. Once Policy login is complete and documents received at HO

(Jignesh/Sangeeta), operations team to check on issuance status
with the Insurance Company within 4 working days and update
concerned Branch and R.M on Policy status.
Also concerned R.M or Branches should follow with the local
Insurers office after the login and update the Status with the Operations
Team at HO (Jignesh/Sangeeta)within 4 days for non medical cases
& 7 days for medical cases.

6. The Branch / R.M concerned shall update the client by a mail and
message/call, the same day and in case of pendencies, shall clear
them all within 3 working days with a mail on third day to
operations team on status.

INCASE OF PENDENCIES….(medicals, docs pending,

financial underwriting etc.)

1. Concerned R.M & Branch Manager to follow up with local office

for the status and update the same to Operation team at
26
 HO(Jignesh/Sangeeta) marking cc to Rekha and Niranjan updating
them about the discrepancy.
Also Operations Team at Ho if receives discrepancy about the
login status should intimate to the Relationship Manager & the
Branches Marking CC to Rekha & Niranjan on the same day.

2. R.M to speak to the client and revert back to operations with the
status.
3. The pendency should be cleared in 3 working days to avoid
further discomfort to the client.

INCASE OF POLICY DOCUMENT NOT RECEIVED BY CLIENT

AFTER ISSUANCE

1. Once there is a confirmation from client of the docs not being

received, the concerned R.M needs to mail the Insurer on the
status and mail the operations team on status.
2. R.M to arrange the Indemnity Bond and do all formalities with
the support of Insurance company R.M to finish formalities to
issue a duplicate copy. The said task has to be completed within
4 working days.

<C> Investment Banking

27
 Emkay focuses on the middle market entrepreneurs, and provides
them with a complete range of solutions from strategic advisory
services to capital raising, to assist them in implementing their growth
plans. We aim to spend adequate time with the entrepreneurs and their
team to understand their motivations, businesses and strategy. Emkay
believes in a strong, relationship driven, long term approach with all
its clients, as corporates need time to execute their business plans and
it is imperative that in turbulent times the banker becomes a trusted
advisor and remains with them through the various phases of the
business cycles and is able to advise them on the best strategies at
each appropriate stage in their growth cycle.

 To enable us to do this, we have put together an experienced team of

professionals who come with very strong relationships across the
regulatory and investor space and also have a deep understanding of
the issues facing the mid market corporates in these times, as they aim
to become the large caps of tomorrow. We have strong relationships
across the spectrum of investors ranging from marquee private equity
funds, mutual funds, overseas institutional investors, hedge funds,
very high net worth investors as well as bankers.

<D> PMS

28
Investment Approach

We keep a regular tab on the capital markets with a view to identify low-risk
opportunities arising in special situations. We are constantly on the lookout
for 'dark-horses', which offer potential advantage due to under-ownership,
temporary down-phase or lack of extensive analysis and trading history. We
base our judgment not only on relative returns, but on absolute returns,
which helps us minimize volatility and downside risks in our clients’
portfolios. In a bid to maximize profitability, we adopt a highly disciplined
approach to selling, while minimizing churn and transaction costs.

Our strong research based process demands that we employ a meticulous

approach to pick up investment worthy companies, guided by four basic
ideas –

Investment value is assessed by a thorough and rational analysis of facts,

while creating analytical models that help identify robust businesses run by
high quality management, at reasonable prices.

Risk Management Strategies

We describe risk as the long-term erosion of capital. Thus, we adopt a

strategy which is best suited to minimize this capital erosion. For this, we
concentrate on investments that offer superior risk-adjusted returns, while
maintaining a superior asset quality with Price/Book ratios as our
fundamental decisive factors. While we are keen on exploiting downside
29
volatility, we understand that it is equally important to heed the aggregate
liquidity of the portfolio and move to cash in the absence of reasonable
investment opportunities. Over and above, our portfolios are diversified
across various industries to hedge the inherent risks and also include
derivatives that make it cost-effective.

Investment Process

Investment Eligibility

 Minimum investment: Rs 1 crore

 Minimum customized portfolio: Rs 5 crore

30
  Management fee: 2 per cent per annum (charged on a quarterly basis
in arrears)
 Brokerage: 0.15 per cent on the executed trades.

PMS – Mutual Funds (Empower Multimanager Portfolio)

Empowers Multimanager Portfolio (EMP) aims at creating investment

portfolios with significant emphasis on striking a balance between risks and
returns. We employ rigorous research techniques to select a diverse range of
mutual funds that deliver consistent and superior long-term rewards, on a
risk-adjusted basis. This is an actively managed portfolio creating wealth
over the long-term through dynamic asset allocation.

Benefits of EMP

 Cost effective
This portfolio employs a reduced cost structure, eliminating excessive
churning of portfolio; thereby minimizing costs (both direct and
indirect) to the investor.
 Diversification
As this portfolio comprises only in mutual funds, it derives the
benefits of diversification. Since the capital is spread across various
asset classes, the inherent risk gets mitigated.
 Well-aligned to attain objectives
Being an actively managed portfolio, the investments are constantly
monitored and are re-aligned at regular and appropriate intervals to
keep them in tune with the stated objectives.

31
 Unbiased approach
Our investment rationale and strong research based processes ensure
that the investments are not inclined towards any particular
manufacturer or service provider.
 Asset rebalancing
Timely profit booking ensures that the asset allocation is reshuffled at
regular intervals and fresh allocations are made during different
market conditions to make the most of the available opportunities.
 Investment Approach
In our endeavor to manage our clients’ wealth effectively, we employ
the most comprehensive process for selecting funds that we believe
are worthy of investing. Our selection of the top three investment-
worthy mutual funds is based on the following two parameters:
Image
The objective is to invest in funds with not just high returns, but also
low risk and volatility. Weightages are assigned to the risk-reward
ratios based on their level of importance, to arrive at funds with
minimum risk and volatility. This ensures that returns are not the sole
deciding factor for investments.
 Risk management strategies
We employ a 'Dynamic Asset Allocation' strategy for managing risk
while achieving higher risk-adjusted returns. Over a period of time,
this risk management strategy provides superior risk-adjusted results,
overcoming the impact of inflation and taxes, giving you real returns.
With a change in the economic climate, the portfolio is rebalanced and
realigned after factoring in the attractiveness of various mutual funds

32
 and their return probabilities. This way, the portfolio's exposure to
declining markets is reduced, diminishing the effect of bear markets,
while preserving capital as well as realizing gains.
 Investment process

33
 Investment Eligibility
o Minimum investment: Rs.10 lakh
o Management fee: 1.25 per cent per annum (charged on a
quarterly basis)

 Wealth Management

Emkay helps you to systematically plan and execute financial

strategies based on an in-depth understanding of your needs, your
appetite for risk and the products that are available in the market.

We follow a three-step process for managing your wealth

 Step 1 - Understanding your needs and goals

Different individuals have diverse needs and goals in life. The
practice of wealth management tries to ensure that your finances
support these goals at every stage of your life. So, our first step to
developing your customized investment portfolio is analyzing your
needs and goals.

 Step 2 - Executing investments

While channeling your finances towards achieving your goals, we
take in to account aspects like your cash flow requirements and your
risk appetite. A right balance is struck between investing in liquid
assets and in medium and long term investments. We suggest
investment across various asset classes such as stocks (equities),
mutual funds, debt assets etc. in varying proportions, depending on

34
 your profile. This helps in optimizing returns and ensuring risk
mitigation through a diversified portfolio.

 Step 3 - Reviewing portfolio at regular intervals

With constant changes in the business and economic environment it is
important to review the portfolio from time to time and make
necessary alterations whenever necessary. This helps in aligning the
portfolio to the investment objective.

 PRICE

EMTRADE REVERSIBLE PLANS

EMTRADE 2500 5000 10000 15000 25000
Cost of 2500 5000 1000 15000 25000
subscription
Reversible 3000 6000 12500 20000 32500
Amount
Validity 6 Mth 1 yr. 1 yr. 1 yr. 1 yr.
Period
Brokerage 0.30% 0.25% 0.20% 0.15% 0.10%
on Delivery
Brokerage 0.03% 0.025% 0.02% 0.015% 0.01%
on Intra
day
Brokerage 0.03% 0.025% 0.02% 0.015% 0.01%
on Future
Brokerage Flat Rs 45 Flat Rs 40 Flat Rs 35 Flat Rs 30 Flat Rs 25
on Option

EMTRADE LIFETIME PLANS

EMTRADE 1000 2500 5000

35
Cost of 1000 2500 5000
subscription
Validity Period Lifetime Lifetime Lifetime
Brokerage on 0.25 paisa 0.20% 0.15%
Delivery
Brokerage on 0.05 paisa 0.02% 0.015%
Intra day
Brokerage on 0.025 paisa 0.02% 0.015%
Future
Brkr on Option 1% or Rs 50 1% or Rs 50 1% or Rs 50

 PROMOTION

Online share trading is totally a new concept in Indian Market. Generally

investor doesn’t like to come out from conventional way of share trading.
Emkay has introduced this product in. The concept and product are still new
in the market. Therefore the company has undertaken extensive promotional
campaigns to create awareness about the product. Emkay adopts the
following tools for promoting the product:-

 Advertising
 Sales Promotion
 Sales Force
 Direct Marketing
 Telemarketing

 PLACE
 Channels
36
 Emkay uses various channel alternatives to reach to its customers
through:-

 Internet
 Tele Marketing
 Retail Share Shops
 Franchisee Owners
 Power Brokers
 Sales Force
 Coverage
Access to the website from any part of the globe.

 Locations
Emkay has a large chain of retail share shops in India. It has almost
120 share shops located in 80 cities all over India like Pune, Thane,
Chennai, Kolkata, Bangalore, Lucknow, Darjeeling, Kanpur, Baroda,
Midnapore, Surat, Delhi, Ghaziabad, Hyderabad, Allahabad, etc.

 PEOPLE
 Employees
 Selection: Employees are selected on the basis of their
experience and qualification as applicable to the job.
 Training: Intensive training is provided to the employees
till a week once they join and even at times required after
that.
 Motivation: The employees are motivated through
incentives they are provided.
 Research Team

37
 Emkay has a team of dedicated analysts who have years of working
experience in the industries that they track, and a proven track record
in using their knowledge of the investment science to deliver results.

 Customers,
The heart of Emkay is really treated loyally like the kings. The
customer care, which comprises of highly trained executives, operates
from 9:30 to 8:00 p.m.

 PHYSICAL EVIDENCE
 Locality of the office:
In Mumbai, franchise outlets are located in posh areas like Worli.
Other franchise outlets are located at Delhi, Andhra Pradesh, Gujrat,
Assam etc.

 Office Environment:
The ambience within the office is what can make the customer feel
comfortable in trading. The cordial and friendly atmosphere at office
is like a full time motivation for the employees.

 Interiors and Infrastructure:

The offices are well furnished and have computer terminals on which
tick-by-tick price movements of the securities are displayed.

 PROCESS
 In this service organization, the ways in which the customers receive
delivery of the service constitutes the process. Here, the process

38
 involves adding ‘value’ or ‘utility’ so that the customers get full
satisfaction for the money spent by them.
 Here the process begins from the step when customer wants to open
e-invest/demat account and ends when his account is actually
activated.
 All Indian residents and NRI are eligible to avail this service.
 Customers can open an Emkay e-invest/demat account by filling a
single application form.
7 ‘S’ MODEL
Structure

Strategy Systemmm

ms
Super
ordinate
Goals
goals Style
Skills

Staff

 STRUCTURE:
Emkay is flexible in terms of making temporary structural changes
to cope up with specific strategic tasks without any hassles. If need
arises, the top management can assign the role to any of its
employees which it considers capable and skillful.

39
 STRATEGY:
Emkay believes not only in developing the strategies but also in its
successful execution.

 SYSTEMS:
This constitutes of all the training and development systems,
estimating budgets and the accounting system of Emkay.

 STYLE:
Style refers to all the symbolic actions undertaken by top managers
of Emkay and its influence on the subordinates.

 STAFF:
Emkay values its employees as its assets and therefore carefully
trains and motivates them by giving them incentives at regular
intervals. Talented employees are assigned as mentors and given
real responsibility and moved into higher positions.

 SKILLS:
The term skills refer to those activities organizations do best and
for which they are known. Emkay is known for its timely advice
(suggestions/tips), which it caters to its customers and it boasts of
70-90% strike rates in booking recommendations.

 SUPERORDINATE GOALS:
This refers to guiding concepts, values and aspirations that unite an
organization in some common purpose. It provides the customers
the best service as it believes in customer satisfaction and
retention.

40
 SWOT ANALYSIS

During this training at Emkay, we had come to know the Strengths-

Weaknesses-Opportunities-Threats for the company and it is very useful for
a company to analyze them. Therefore, the SWOT analysis is presented here
and the suggestions for maintaining strengths and removing weaknesses are
explained.

 Strengths:
 Well-maintained infrastructure.
 Dedicated, Intelligent and Loyal staff.
 On-line Trading products.
 Lowest brokerage and other charges w.r.t. Competitors.
 The best investment advice correct up to 70-90 % through dedicated
research and reports.
 Wide product range to enable the clients to choose the best alternative.
 A positive image in the existing clients.
 Quality service.

 Weaknesses:
 Less awareness in the market.
 Time consuming process for account opening, resolving the problems
of the customers, etc.

 Opportunities:

41
  Slope of stock market towards delivery based transaction.
 Large potential market for delivery and intra-day transactions.
 Open interest of the people to enter in stock market for investing.
 Attract the customers who are dissatisfied with other brokers.
 An indirect opportunity generated by the market from its bullishness.
 Large untapped market in India.

 Threats:
 Decreasing rates of brokerage in the market.
 Increasing competition against other brokers.
 Poor marketing activities for making the company known among the
customers.
 A threat of losing clients for any kind of weakness of the company.

 Losing the untapped market with the entry of the competitors.

Research Methodology

SOURCES OF DATA

The data, which was obtained for the study, has to be divided into two
groups:

 PRIMARY DATA
 SECONDARY DATA

42
PRIMARY DATA:

Primary data comprises of information obtained by the candidates during

discussions with the heads of the departments and the form of meetings with
the officials and staff. By concerting these peoples the primary data are
collected. The most preferred way is to interview the individuals to get a
sense of how they feel

SECONDARY DATA:

Documents maintained by the organization are also helpful. The market

survey and meeting with brokers is also Secondary Data comprises of. In the
study, one fourth of the total information obtained is from primary data and
the three fourth from secondary data.

SCOPE OF STUDY
The research would be useful in the following respect:

 This will help the company to know the taste of masses and turn it
towards Share Market.
 This will help the company, how to make people aware about Share
Market by imparting best education.
 This will help the company to frame effective Marketing Strategy as
well as select the right media for advertising to create brand
awareness as well as to give knowledge of the product.

43
  This will also help to select right medium for trading in the Stock
Market.

LIMITATION OF THE STUDY

The limitations of the study are as follows:

Personal Bias:

Individuals may have personal bias towards particular investment option so

they may not give correct information and due to which proper conclusion
may not be derived.

Time Limit:

The time duration given for the research is less.

Area:

The area was limited to Delhi City only, so we cannot know the degree of
the literacy outside the city.

Sample Size:

The last limitation is Sample Size, which is about 300 only; due to which we
44
may not get the proper results.

DATA ANALYSIS & INTERPRETATION:

The data collected have been analyzed through statements, tables and graphs
and explained in language for better understanding.

 Gender Ratio:

Male Female
294 106

250
294
200

150
106
100

50

0
Male Female

Series1

 Age:

Below 30 30-50 More than 50

212 53 35

45
 250
212
200

150

100
53
35
50

0
Below 30 30-50 More than 50

Series1

 Education Qualification:

Post Graduate Graduate Under Graduate

112 172 16

200
172
180
160
140
112
120
100
80
60
40 16
20
0
Post Graduate Graduate Under Graduate

Series1

46
 Occupation:

Govt. Non-Govt. Business Professional

Employees Employees Man
62 120 70 48

140
120
120
100
80 62 70
60 48
40
20
0
Govt. Non-Govt. Business Professional
Employees Employees Man

Series1

 Investment Pattern:

Securities No. Percentage(%)

Bank F.D. 114 38
Post office 63 21
Insurance 28 9
Mutual Fund 30 10
Gold 22 7
47
 Equity 19 6
Derivatives 10 3
Commodities 14 5

114
120
100
80 63
60
38
40 28 30
21 22 19
9 10 10 14
20 7 6 3 5
0

No. Percentage(%)

It can be seen from the graph that the respondents have given first preference
for investment to Bank F.D. and Gold, Equity, Derivatives and Commodity
having almost equal share.

 Factors that are to be consider by Individual at the time of

investment:

Factors No. Rank

Risk Reduction 129 1
Leverage Benefit 112 2

48
 Arbitrage Benefit 12 5
Speculative Motive 15 4
Liquidity preference 32 3

140 129
120 112

100
80
60
40 32
12 15
20 1 2 5 4 3
0
Risk Leverage Arbitrage Speculative Liquidity
Reduction Benefit Benefit Motive preference

No. Rank

So, each and every investor is not risk taker though they want more return
from the investment.

 Medium preferred by individual at the time of investment:

Factor No. Rank

Broker 117 1
Magazine 55 3
Internet 102 2
Other 26 4

49
 140
117
120
102
100
80
55
60
40 26
20 3 4
1 2
0
Broker Magazine Internet Other

No. Rank

 Exchange preferred by individual Derivatives:

BSE 155
NSE 145

156 155
154
152
150
148
146 145
144
142
140
BSE NSE

Series1

 Constraints that are holding back to individual for investment:

50
 Constraints No. Percentage (%)
Lack of knowledge 64 21
Lack of Guidance 58 19
Lack of Fund Availability 70 23
Lack of Risk taking Ability 108 36

120 108
100
80 70
64
58
60
36
40
21 19 23
20
0
Lack of Lack of Lack of Fund Lack of Risk
knowledge Guidance Availability taking Ability

No. Percentage (%)

 Individual take decision through:

No. Rank
Independently 97 1
Broker/Agent 73 2
News Channels 19 6
News Papers 20 5
Internet 68 3
Tax consultant 23 4

51
 120 97
100
73 68
80
60
40 19 20 23
20 1 2 6 5 3 4
0

nt
ly
en
t ls rs et nt
e g nne ape t ern
ulta
d /A
en er ha s
P In ns
ep
rok s
C
e w co
d B w N x
In Ta
Ne

No. Rank

 Medium reliable for individual for trading:

Stock Broking Companies 168

Franchisees 43
Online 89

 Most preferred Broking Companies of the Delhi City:

India Bulls 3
India Infoline 2
Emkay 5
Motilal oswal 8
HDFC Securities 7
ICICI Direct 1
52
Kotek street 6
ShareKhan 4
 8

3 Series 1

0
ls e y l es ct et
Bul ol
in ka swa r iti ire tre
a f Em O cu D S
di a In lal Se IC
I
ta
k
In di oti IC
In M FC Ko
HD

MY LEARNING

During the two months training I explored my knowledge of stock

market. I also came to know that how to implement theory in practice. I also
got the chance for trading Emkay’s product like Demat A/c, Insurance etc.
which improved my convincing power and also gave me the chance to meet
different people .It also increased my confidence. It is a memorable
experience to be a part of Emkay family. I will be always thankful to them.

RECOMMENDATION
53
 Emkay needs to make its marketing team strong and also it should
increase marketing activities such as promotional campaigns.
 Emkay should educate the investors about Share Trading/ Share Market
by organizing classes, corporate presentations, taking part in consumer
fairs, organizing events.
 Emkay can also use Newspapers and Local New Channels as a medium
of advertising.
 Emkay may also use its helpline number for giving education on Share
Market.
 Company may appoint special team for giving education & attracting
people towards trading Share Market.

CONCLUSION

 Most of the people in Delhi City are investing in fixed return

Instruments.
 But there are investors who use Equity as an investment tool.
 People invest mainly for reducing risk and regular returns.
 People generally want to take trading decisions independently or
under the guidance of Friends or Well Known Stock Broking Houses.
 Literature and Self Experience can be taken as the best method to
impart education about derivatives & commodities.

54
 QUESTIONNAIRE

CUSTOMER INFORMATION SHEET

1. Name:
2. Address:
3. Contact No.: Landline No.__________Mob. No._______________
Email ID _____________________________
4. Profession: Business Service
5. Annual Income: 1,00,000-2,00,000 2,00,000-3,00,000
3,00,000-4,00,000 4,00,000-5,00,000
5,00,000 & Above
6. Do you Invest Somewhere: Yes No
7. Investment in: Insurance Mutual Funds
Shares Bank Deposits
Properties Others
8. Which product do you like for best investment:________________
9. Do you have Demat Account: Yes No
10.If yes, in which Company & what is the
Brokerage:_______________________________________
11.Are you satisfied with their services: Yes No
12.Do you want a Demat Account: Yes No
13.Do you want to invest in a Tax Saving Investment Plan:
Yes No

55
 14.Do you know about EMKAY GLOBAL FINANCIAL SERVICES
LTD.: Yes No
15.Are you a customer of EMKAY GLOBAL FINANCIAL
SERVICES LTD.: Yes No
16.Are you satisfied with the services of EMKAY:

Yes No

BIBLIOGRAPHY
Books:

 Kothari C.R., Research Methodology, New Delhi, Vikas Publishing

House pvt.Ltd. 1978
 Pathak Bharti v.,Indian Financial Syatem,Delhi,Person
Education(Singapore) Pvt.Ltd.

Magazines:

1. Business Today
2. Business World

56
Internet:

1. www.google.com
2. www.bseindia.com
3. www.nseindia.com
4. www.emkayglobal.com
5. www.ncdex.com.
6. www.mcx.com
7. www.moneycontrol.com

Newspaper:

1. Times Of India
2. Economic Times

Several broking agents in Delhi / NCR.

57