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IMPACT OF FII 0N INDIAN STOCK MARKET

1. INDUSTRY PROFILE:
India's tradition in trading of securities goes back to the 18th century, when loan securities of the East India Company were traded. Corporate shares came into existence in 1830s. With development of telegraph and communication systems brokerage business increased and there were as many as 60 brokers in 1860. The Bombay Stock Exchange, the oldest in Asia, was set up in 1887 as the ``Native Share and Stock Brokers Association''. After the Second World War with business coming back into stream, many more stock exchanges were established. In 1956 the government brought a legislation to govern the stock exchanges -Securities Contract Regulation Act (SCRA), 1956. Today the Indian stock exchanges are regulated by Ministry of Finance, Security and Exchange Board of India (SEBI) and Governing Boards within the legal framework provided by the SCRA, 1956 and SEBI Act 1992. The market in India during the period upto 1990 was dominated by the scripts that came in from the New Issue Market. Another feature of the market during this period was the large number of new companies coming up with public issues. The Government owned institutions insisted that wherever they lent money to projects, the shares of that company had to be listed. Hence listing became a necessary evil rather than a privilege which it should be. As we moved into the 90's we had a market which was growing at a fast pace but was very domestic in nature and not subject to free market dynamics. The reforms in the Indian economy ushered during 1991 affected the Indian stock markets as they did many other aspects of economic activities. Until the beginning of this decade, foreign portfolio investment was not permitted into the stock market. This resulted in India being ignored in the huge global flows of money. Realizing the role such investments could play in the growth of the markets and the economy, the government has now permitted Foreign Institutional Investors to invest directly into the stock market. As the regulations stand today, FIIs can invest upto 30 per cent in the stocks of Indian companies. While foreign portfolio investment has come into the market, Indian shares were also permitted to be traded abroad. The GDR mechanism has been used to list and trade top Indian HKBK COLLEGE OF ENGG Page 1

IMPACT OF FII 0N INDIAN STOCK MARKET

companies on London and other bourses. This again globalizes the Indian stock market on account of arbitrage. Another significant aspect of globalization is the entry of foreign brokers. In a dramatic move the foreign broker firms have been allowed to set up branches in India. These firms are now extremely active both in research and trading. They have brought in considerable expertise into the stock markets. However their entry has created issues for the domestic brokers who are now reeling under the competition. Another significant new development has been the abolition the Controller of Capital Issues (CCI). Prior to 1992, CCI -- a part of the Ministry of Finance -- set the pricing of issues. This was much lower than the market price. All this meant that the secondary market became a haven for quick profit taking. This is also meant that top class companies hardly ever approached the market as they did not want their shares to be given away cheap. However free pricing changed all this. On one side we have seen Indian investors waking up to the reality of making losses in the secondary market. On the positive side many large companies have come forward and issued their shares to the Indian investors. Prior to the Reforms the Indian companies were characterized by a very large number of shareholders holding small quantities of shares. The institutionalization was not much and even where it existed, the term lending institutions like IDBI, IFCI and ICICI were the shareholders and these institutions never traded their stocks. However the Reforms brought it. Not only Fijis -- whose role has been discussed earlier -- but also allowed the entry of Private Sector into the Mutual Fund industry. This has seen a large increase in the number of institutions in the secondary market. It will not be an exaggeration to say that in less than a decade we have seen a major change from retail ownership of stocks to its institutionalization. Before National Stock Exchange (NSE) came into existence the BSE catered to more than two-thirds of the trading activities, but today the main stock exchange is the NSE. With the fear of competition from the NSE, BSE also started implementing the idea of computerization.

In 1992, NSE was incorporated with equity of Rs 25 crores. The intention was to have computerized systems, hooked nation-wide via satellite to increase the scope and depth of the market. This dream finally came true towards the end of 1994. This stock exchange has adopted the principle of being an order driven market. HKBK COLLEGE OF ENGG Page 2

IMPACT OF FII 0N INDIAN STOCK MARKET

Anywhere in India the broker on connecting his terminal with the main terminal through a VSAT, can enter buy-and-sell orders. The computer will scan the transactions within 30 seconds and transaction is executed and unmatched orders stored in the memory. This eliminated the role of the jobbers. As India complete 58 years of a free India and move towards a truly global India of the 21st century, the agenda for the stock market is one of consolidation. There are still some issues that need to be ironed out. India needs a modern system of trading and holding shares. The creation of the National Securities Depository Limited (NSDL) is a major move which would lead the market quickly towards paperless trading. We need to have a good Debt Market. Though a lot of debt scripts are in the market, there is hardly any trading. The opening up of debt to foreign investors, the creation of money market funds and possible introduction of derivatives would give the Debt Market its due place in the financial system. India has a very old stock market. There is enough reason for us to believe that the ``Old is now turning to Gold''.

2. COMPANY PROFILE:
2 (a). Background and Inspection of the company
India Infoline founded in 1995 by Mr. Nirmal Jain (Chairman and Managing Director) as an independent business research and information provider. India Infoline gradually evolved into a one-stop financial services solutions provider. Our strong management team comprises competent and dedicated professionals. India Infoline a pan-India financial services organization across 1,361 business locations and a presence in 428 cities. Our global footprint extends across geographies with offices in New York, Singapore and Dubai. We are listed on the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE). HKBK COLLEGE OF ENGG Page 3

2000 Commenced the distribution of personal financial products. Two subsidiaries – India Infoline Investment Services and Moneyline Credit Limited – are registered with RBI as non-deposit taking non-banking financial services companies.com mobilized capital from reputed private equity investors. consulting firms and corporates. 2004 HKBK COLLEGE OF ENGG Page 4 . CDSL and NSDL as depository participants. Milestones 1995 Incorporated as an equity research and consulting firm with a client base that included leading FIIs. insurance. credit and finance.must read for investors’. is registered with the National Housing Bank. Acknowledged by Forbes as ‘Best of the Web’ and ‘. We also received the FII license in IIFL Inc. entered life insurance distribution as a corporate agent. We are registered as a Category I merchant banker and are a SEBI registered portfolio manager. asset management and investment banking. IIFL Securities Pte Ltd received approval from the Monetary Authority of Singapore to carry out corporate advisory and dealing in securities operations.. 1999 Restructured the business model to embrace the internet.indiainfoline. the housing finance arm.. India infoline Housing Finance Ltd.IMPACT OF FII 0N INDIAN STOCK MARKET We offer a wide range of services and products comprising broking (retail and institutional equities and commodities). Launched archives . banks. launched online equity trading. We are registered with the BSE and the NSE for securities trading. wealth management. NCDEX and DGCX for commodities trading. MCX.

received ‘Best brokerIndia’ award from FinanceAsia.India’ award from FinanceAsia’. received ‘Fastest growing Equity Broking House . launched Portfolio Management Service.Large firms’ in India by Dun & Bradstreet. 2006 Acquired membership of DGCX. 2009 Received registration for a housing finance company from the National Housing Bank. ‘Best Broking House with Global Presence award from D&B’ ‘Best Wealth Management House in India Award from Asset HKBK COLLEGE OF ENGG Page 5 . raised over USD 300 mn in the group. launched consumer finance business under the ‘Moneyline’ brand. received the venture capital license. 2008 Launched wealth management services under the ‘IIFL Wealth’ brand. 2007 Launched a proprietary trading platform. launched investment banking services. set up India Infoline Private Equity fund.India’ award from Asiamoney. 2005 Listed on the Indian stock markets. ‘Most Improved Brokerage. formed a Singapore subsidiary. 2011 Received ‘Best broker. inducted an institutional equities team. received inprinciple approval to sponsor a mutual fund. received the Insurance broking license from IRDA. 2010 Received in-principle approval for membership of the Singapore Stock Exchange.IMPACT OF FII 0N INDIAN STOCK MARKET Acquired commodities broking license. Received membership of the Colombo Stock Exchange .

6) Insurance. INDIAINFOLINE is one such financial service organization. 4) The investment Advisory and Broking (IAB). catering to requirements of individuals and institutions by providing a broad spectrum of value added products and services for both of them. The range of products on offer includes 1) Wealth Management Services. 2) Portfolio Management. HKBK COLLEGE OF ENGG Page 6 . there is always a need for someone who can guide investors through the complex maze of investment options with unbiased and expert who would understand the needs of the investor and help him achieve his financial goals. NATURE OF THE BUSINESS CARRIED Not everybody is an Investment professional. 3) Securities Broking.IMPACT OF FII 0N INDIAN STOCK MARKET Asian Awards (Triple A)’ 2(b). corporate and institutions. INDIAINFOLINE is the Investment consultancy providing Advisory and Investment facilitation services to retail investors. 5) Credit And Finance.

Commoditi es Mutual Funds Insurance Informatio n and advice Execution and Service Equities 2(c). It is one stock shop for all investment needs for the Indian retail investors. Mission and Quality policy IndiaInfoline Vision “To become the most respected company in the financial service space. from advice to execution online as well as offline. personalized service and cutting – edge technology.” Quality policy “To achieve and retain leadership.” IndiaInfoline Mission “To become a full – fledged financial services company known for its quality of advice. all investment for products. by combining its human and technological resources. IIFL shall aim for complete customer satisfaction. investment insurance plan etc.IMPACT OF FII 0N INDIAN STOCK MARKET IndiaInfoline is a wealth management Company. From advice to execution in financial services. tax saving. to provide superior quality financial HKBK COLLEGE OF ENGG Page 7 . They deal with Equity trading. Vision.

IIFL’s analyst team won Zee Business’ ‘India’s best market analysts awards – 2009’ for being the best in the Oil and Gas and Commodities sectors and a finalist in the Banking and IT sectors. PRODUCTS/SERVICES PROFILE Equities Indiainfoline provided the prospect of researched investing to its clients. Portfolio Management Service Our Portfolio Management Service is a product wherein an equity investment portfolio is created to suit the investment objectives of a client. This service is particularly advisable for investors who cannot afford to give time or don't have that expertise for day-to-day management of their equity portfolio. Research for the retail investor did not exist prior to Indiainfoline. and we want you to find the facts that you need. which was hitherto restricted only to the institutions. We at Indiainfoline invest your resources into stocks from different sectors. Research Sound investment decisions depend upon reliable fundamental data and stock selection techniques. Commodities Indiainfoline’s extension into commodities trading reconciles its strategic intent to emerge as HKBK COLLEGE OF ENGG Page 8 . Indiainfoline made it possible for clients to view transaction costs and ledger updates in real time. 2(d). They choose Ford Equity Research when they can clear your doubts. Indiainfoline leveraged technology to bring the convenience of trading to the investor’s location of preference (residence or office) through computerized access. Equity investment professionals routinely use our research and models as integral tools in their work. Indiainfoline Equity Research is proud of its reputation for. depending on your risk-return profile.IMPACT OF FII 0N INDIAN STOCK MARKET resources in the process IIFL will strive to exceed customer expectations and getting high value returns to the customers.

Credit & Finance HKBK COLLEGE OF ENGG Page 9 . Later. The Company was among the first to offer the facility of commodities trading in India’s young commodities market (the MCX commenced operations only in 2003). On the whole. The Company’s commodities business provides a contra-cyclical alternative to equities broking.02 bn. Bajaj Allianz Life. The commodities market has several products with different and non-correlated cycles. Insurance IIFL entered the insurance distribution business in 2000 as ICICI Prudential Life Insurance Co. MetLife. it became an Insurance broker in October 2008 in line with its strategy to have an ‘open architecture’ model.IMPACT OF FII 0N INDIAN STOCK MARKET a one-stop solutions financial intermediary. Birla Sunlife. Its experience in securities broking has empowered it with requisite skills and technologies. Life Insurance Corporation. The Company now distributes products of major insurance companies through its subsidiary India Infoline Insurance Brokers Ltd. Ltd’s corporate agent.34 bn to Rs 20. Kotak Life Insurance and others. Mortgages During the year under review. Indiainfoline now has plans to roll the business out across its pan-Indian network to provide it with a truly national scale in operations. the business is fairly insulated against cyclical gyrations in the business. Indiainfoline acquired a 75% stake in Moneytree Consultancy Services to mark its foray into the business of mortgages and other loan products distribution. Average monthly turnover on the commodity exchanges increased from Rs 0. Customers can choose from a wide bouquet of products from several insurance companies including Max New York Life Insurance. The business is still in the investing phase and at the time of the acquisition was present only in the cities of Mumbai and Pune. The Company brings on board expertise in the loans business coupled with existing relationships across a number of principals in the mortgage and personal loans businesses. Reliance Life Insurance.

Mathura. panipat. IndiaInfoline is functioning in the following cities of India It service is divided into four zones namely North. Mumbai. HKBK COLLEGE OF ENGG Page 10 . 3) Delhi: Delhi. 2(e). Currently. It has robust credit processes and collections mechanism resulting in overall NPAs of less than 1%. The Company has deployed proprietary loanprocessing software to enable stringent credit checks while ensuring fast application processing. Thane. Godhra. Jamnagar. 4) Maharashtra: Kolhapur. AREA OF OPERATION IndiaInfoline services are available through IndiaInfoline strong network of 1361 Business Locations spanning 428 cities and towns in the country and in some of the foreign countries also. Jabalpur. 3) Madhya Pradesh: Bhopal. Khanpur. secured loans (mortgage loans. Rewari. Gwalior. Gandhinagar. The Company has discontinued its unsecured products. Punjabi Bagh. Lucknow. 2) Rajastan: Ajmer. 5) Himachal Pradesh: Shimla. Nagpur. In North 1) Uttar Pradesh: Agra. 2) Haryana: Ambala. Surat. Recently the company has also launched Loans against Gold. Varanasi. loans against shares) comprise 94% of the loan book. Faridabad. Karnal. Ludhiana. Bikaner. Noida. Gurgaon. Baroda. Sonipat. Ghaziabad.IMPACT OF FII 0N INDIAN STOCK MARKET IIFL offers a wide array of secured loan products. 4) Punjab: Amritsar. West and Southern zones of India. Udaipur. Mohali. Ujjain. Preet vihar. Nasik. Patiala. Pune. Chandigarh. Allahabad. margin funding. Gorakhpur. Jalandhar. Jaipur. Jodhpur. East. In East 1) Gujrat: Ahmadabad. Indore.

Salem. International Branches: IndiaInfoline has its business operations in some of the foreign countries like: 1. Bilaspur. Tumkur. Brazil. 3) Orissa: Bhubaneshwar. China. Hassan. Kolkata.S. 4. Vellore. Dubai. Muzzafarpur. Pondicherry. Gulbarga. 7. Hubli. U. Korba. 5. Howrah. Singapore. Gaya. 4) Bihar: Bhagalpur. Hosur. Saltlake. In South 1) Karnataka: Bangalore. OWNERSHIP PATTERN TABLE NO. Haldia. Bellary.01 PARTICULARS HKBK COLLEGE OF ENGG NUMBER OF PERCENTAGE Page 11 . Raiganj. 2. Russia. Rourkela. 3. Coimbatore. Raipur. Madurai. Durgapur. 6. Sambalpur.K 2(f). Kanchipuram. Mysore. Mangalore. Cuttack.A. U. 2) Chhattisgarh: Bhilai. Patna. 2) Tamilnadu: Chennai.IMPACT OF FII 0N INDIAN STOCK MARKET In West 1) West Bengal: Barrackpur.

COMPETITORS INFORMATION TABLE NO .048.07 40.65 1.245.90 15.75 43.55 127.40% 0.00% 4.86 87.54 49.46 13.80 615.35 110.327.83 774.69 58.64 28.82 33.99 -9.64 63.28 26.50 38.39 1.87 6.10% 33.919.70 66.69 2.00 27.26 -69.81 827.39 8.13 48.69 1.72 2.13 1.14 174.728.82 925.26 2.10 75.30 54.) 6.50 295.35 15.016.95 140.90 119.80 342.55 90.98 38.91 4.56 42.65 128.66 30.46 207.57 478.56 92.554.54 39.88 84.IMPACT OF FII 0N INDIAN STOCK MARKET SHARES FOREIGN INSTITUTIONS GOVT HOLDING NON PROMOTER CORPORATE HOLDING PROMOTERS PUBLIC AND OTHERS TOTAL 78232566 57843332 0 11528968 95655532 40139602 283400000 27. (Rs.02 Last COMPANY Indiabulls Edelweiss Cap India Infoline Motilal Oswal F Delta Corp Pilani Invest SKS Microfin Future Capital Network 18 Geojit BNP Nalwa Sons Inv Kirloskar Broth Money Matters The Byke Hosp Consol Finvest Emkay Global Microsec Fin Aditya Birla Dhunseri Invest Indbank Merchan Keynote Corp Se Price 203.63 55.57 221.35 Market Cap.24 22.36 42.74 729.20 33.91 233.80% 14.049.26 ( In Crores) Net profit 608.47 238.20% 100% 2(g).537.09 651. cr.64 111.00 95.93 7.62 18.00 86.667.58 660.95 127.33 17.92 Sales Turnover 2.51 512.40 356.39 171.29 15.23 1.72 122.30 7.20 Total Assets 20.37 1.32 33.92 27.63 43.73 15.70 448.500.05 20.21 332.685.10 470.63 48.318.60 755.06 Page 12 HKBK COLLEGE OF ENGG .13 98.30 700.93 370.20 4.42 387.30 1.27 21.87 3.92 111.05 117.303.60% 20.00 38.05 70.85 261.12 -9.740.

000 square feet of office space located throughout India. The look and feel of the offices across India projects a consistent branch image for the company.85 2(h).IMPACT OF FII 0N INDIAN STOCK MARKET Transwarranty 9. • Each branch comprises of trained and qualified Investment advisors to take care of the needs of the customers. • The Lunch room. Our IndiaInfoline Branches collectively occupy an additional 10.38 0. TV and other electronic mediums to facilitate real time update and dissemination of information to our customers.95 24.000 square feet of office space located in Mumbai. • Most of the branches are located in the first and second floor sporting huge glass frontage promoting easy accessibility and reflecting our attitude of complete transparency. • • Connectivity to NSE for trading facilities.41 53.34 8. The furniture is in CKD formats to add flexibility in using the branch for investors purposes. INFRASTRUCTURAL FACILITIES Our main offices are located in approximately 4. IndiaInfoline Investment outlets are designed to be placed where retail investors can come in touch with Investment opportunities in an atmosphere of convenience and comfort. • The major portion of the branch area dedicated for customer use. India. Lift and Rest room facilities are provided to the employees in every branch and recreation facility is provided by offering Lunch coupons at free of cost. Easily visible branches set up in the commercial spaces of potential investment zones ranging between 750sft to 1000sft. HKBK COLLEGE OF ENGG Page 13 .

Is a depository participant of NSDL (National Security Depository limited) 5. 4. BSE and NSE in the year 2005. 2. 6. 7. ACHIEVEMENTS/ AWARDS 1. Awarded “Best Wealth Management House” by Asset Asian (Triple A) Broking Awards 2011. Is listed on both the stock exchanges i. 3.IMPACT OF FII 0N INDIAN STOCK MARKET 2(i). According to a survey it is India’s second best online stock broking company. Awarded “Most Imported Brokerage” in India by Asia Money as a part of its 2008 poll. Have many joint ventures and tie-ups with other companies like Moneyline Consultancy Services.e. Has 2 famous online websites: www.com. 2(j).5paisa. HKBK COLLEGE OF ENGG Page 14 . Awards won by IndiaInfoline • • • • • Awarded “Best Broker India” by Finance Asia as a part of its survey of financial services firms across Asia for 2011.WORK FLOW MODEL (End to End) `The work flow model of the organization is represented by a flow chart. Has tied-up recently with a US firm Auerbach Grayson and Company. Awarded “Fastest growing Equity Broking House – Large firm’s in India by Dun and Bradstreet Broking Awards 2009. Marchmount Capital Advisors and DSP Merrill Lynch Capital. Awarded “Best Broking House with Global Presence” by Dun and Bradstreet Broking Awards 2011. 8.indiainfoline.com and www. Has acquired the NBFC license in May 2005. Has its own Stock messaging service.

Plan Demat A/c . COMPANY’S FUTURE GROWTH AND PROSPECTS IndiaInfoline is a widely expanding company its future prospect can be understood by following: 1) Planning to enter into the Real Estate business. Prepares of clients detail or financial Customer account is opened in INDIA INFOLINE customer clients and requirement manger. HKBK COLLEGE OF ENGG Page 15 .Mutual funds . 2)Insurance 3)Equity & Derivatives 4)Commodities.. 2(k). 2) Targeting higher Manpower.IMPACT OF FII 0N INDIAN STOCK MARKET Dealers/ salesmen Investmentobtain prospective proposed plan Contacts /clientsWalk-in of contactrelationship about prospective surveyor explains and information Branch Development andcounselordetails Decides On Financial Obtainmanager. (short and long term) Equity Commodities . Insurance etc.

close down or damage with stronger players in three to four years. New York Life. and Old Mutual etc. But this does not mean there is no room for other players. SEBI is working out the norms for enabling the existing mutual fund schemes to trade in derivatives. Here too some of them will down their shutters in the near future to come. The market will witness a flurry of new players entering the arena. The ability to successfully launch the new product HKBK COLLEGE OF ENGG Page 16 . are looking at Indian market seriously. In private sector this trend has already started with two mergers and one takeover. Sun Life Canada and Old Mutual. Some of the key names are: AIJ.IMPACT OF FII 0N INDIAN STOCK MARKET 3) Targeting more number of Branches in near future The asset base will continue to grow at an annual rate of about 30 to 35% over the next few years as investor’s shift their assets from banks and other traditional avenues. Some big names like Fidelity. The entry of new player has rejuvenated the monopoly player LIC. Some of the older public and private sector players will either close shop or be taken over. The mutual fund industry is awaiting the introduction of derivatives in India as this would enable it to hedge risk and this in turn would be reflected in its Net Asset Value (NAV). Principal. Changes in political and social conditions in India. Allianz. many market players have called on the regulator to initiate the process immediately. Reforms have marked the entry of many of the global insurance measures into the Indian market in the form of joint ventures with Indian companies. which has responded to the competition in an admirable fashion by launching new product and improving service standards.     The ability to successfully implement our growth strategy and expansion plans. The ability to respond to technological changes. Out of ten public sector players five will sell out. so that the mutual funds can implement the changes that are required to trade in Derivatives. Standard Life. Importantly. Changes in laws and regulations relating to the industry in which we operate. Prudential. There will be a large number of offers from various asset management companies in the time to come. One important reason for it is that most major players already have presence here and hence these big names would hardly like to get left behind.

IMPACT OF FII 0N INDIAN STOCK MARKET 3. Since then it is known as their 7 S Model. HKBK COLLEGE OF ENGG Page 17 . The Seven S model was born at a meeting of these four authors in 1978. Together these factors determine the way in which a corporation operates. and was taken up as a basic tool by the global management consultancy company McKensy. Managers should take into account all seven factors. Origin of the Mc Kinsey’s 7 S Model: Richard Pascale and Anthony Athos first mentioned the 7-S Framework in “The Art of Japanese Management” in 1981. Mc KENSY’S 7 S MODULE The 7 S Framework of McKensy is a model that describes 7 factors to organize a company in a holistic and effective way. to be sure of successful implementation of a strategy. They had been investigating how Japanese industry had been so successful. It appeared also in "In Search of Excellence" by Peters and Waterman.

it is much more difficult to plan or to influence the characteristics of the soft elements. They are difficult to describe since capabilities. organizational charts and other documents. The four soft S’s however. a HKBK COLLEGE OF ENGG Page 18 . They are highly determined by the people at work in the organization. They can be found in strategy statements. are feasible. Planning. By the words above implies that the company should apply Mc Kensy’s 7 S Model for its better performance. Staffing. The organization structure changes from one company to other according to their requirements. corporate plans. In today’s complex and ever-changing environment. values and elements of corporate culture are continuously developing and changing. The hard elements are feasible and easy to identify.IMPACT OF FII 0N INDIAN STOCK MARKET These seven elements are distinguished into hard S’s and soft S’s. it has been tested extensively by McKensy’s Consultants in their studies of many companies. strategies and systems of the organization. At the same time. Leading/Directing and Controlling. Although the often factor’s is below the surface. The outstanding feature of the 7 S model is that. Organizing. Mc Kensy’s 7 S Model with respect to India infoline (A) STRUCTURE: Organizational structure refers to the relatively more durable organizational arrangements and relationships. This model also supports the five managerial functions i. this frame work has been used by the business schools of Harvard and Stanford Universities. they can have a great impact of the hard structures. Therefore.e. Thus theory and practical seem to support each other in the study of management.

It is the skeleton of the whole organizational edifice. ORGANISATION STRUCTURE INDIA INFOLINE– 2011 HKBK COLLEGE OF ENGG Page 19 .IMPACT OF FII 0N INDIAN STOCK MARKET successful organization may make temporary structural changes to cope up with the specific requirements.

IMPACT OF FII 0N INDIAN STOCK MARKET Company Director Head-Accounts VP-Research Managing Director VP-PMS & Secretary VP.Brokingoffice Head Commodities Head-Distribution Head-Risk/Compliance Head-Marketing & Insurance Head-Technologydepository Executive Institutional Sales service Chairman & back -News Head-Back Office Depository Service HKBK COLLEGE OF ENGG Page 20 .

It maintains a good contact with other department because output of one department becomes the input for another department. The dominant skills or the distinctive competence of an organization are part of the organization character. SKILL: The term skill includes those characteristics which people use to describe a company.IMPACT OF FII 0N INDIAN STOCK MARKET Each and every department is inter-linked with other departments. “It is always our endeavor that you grow to be a skillful and competent manager”. The company exposes its employees to some specialized on-thejob training in the quality improvement of the products. It finally goes with performance appraisal. STYLE: HKBK COLLEGE OF ENGG Page 21 .

 Multi channel delivery model HKBK COLLEGE OF ENGG Page 22 . its customers and its competitors. and symbols that is conveyed to the people throughout organization overtime. beliefs. give them a platform of choice to transact and support them with quality research.. STRATEGY Strategy refers to those actions that a company plans in response to or in anticipation of changes in its external environment. thoughts. We distribute mutual funds and life insurance products through our branches as well as directly through our sales team. These factors allow us to provide our customers with an integrated online as well as offline solution to fulfill all their financial information and transaction needs.IMPACT OF FII 0N INDIAN STOCK MARKET In basic organization model Style is related to Culture of the organization. The management expects its employees to learn from their experience and groom themselves to be the managers of tomorrow. and the employees work according to it. The key driver is to increase our customer base in all our products. it is important to bear it in mind while developing a new strategy. It is a plan or course of action leading to the allocations of an organization’s finite resources to reach identified goals. The authority of decision making always vest in the hands of top management. Since it is very hard to change a company’s ingrained culture. The work style is participative. the policies and work procedures have been laid down. Culture or the Style is the aggregate of behaviors. In India Infoline the management believes that no member of the team is ready to lead unless the employee has been exposed to all facets of the operation.e. Our business plan is to become the leading investment advisor and intermediary for financial services in India. but the basis for such a work environment is autocratic in nature i. We believe that our ability to offer multiple products across broking to insurance to mutual funds to commodities to small savings differentiates us from our competition. The elements of our strategy include:  "One Stop Shop" from advice to transactions We have emerged as one of India’s leading financial information Internet portal in India. This also offers significant cross selling opportunities which will help in improving margins as incremental revenue will entail lower customer acquisition and promotion costs. but their suggestions are taken up from time to time everyone could be seen taking interest in their work.

We believe that our technology investments will be a key driver in scaling up of the business. payment gateways with multiple banks. This research advantage will enable us to acquire customers in high value added product offerings especially in portfolio management services.IMPACT OF FII 0N INDIAN STOCK MARKET We intend providing a single convenient and reliable platform from which our users can obtain information. They distribute mutual funds and life insurance products through their branches as well as directly through their sales team. In our endeavor to do so and as per our business strategy we may pursue inorganic growth.  Continuous investments in technology platform We have leveraged the power of technology to offer an integrated platform to the customer to transact. We propose to set up additional 77 branches in 50 cities across India to have a network of 150 branches to further strengthen our geographic reach..  Acquisition and Takeover We strongly believe that to become a market leader in the investment advisory and intermediation space. we have to expand our business. We will continue to invest in such technologies that would enhance customer experience while interacting with us. We have facilitated integrated trading and depositary accounts for the customer. They have emerged as one of India’s leading financial information Internet portal in India. Our branches have been opened in cities after a detailed study of demographics and investment patterns in different cities.  Expand our retail network We have a retail branch network of 73 branches at 36 locations across India to provide an alternative channel for our customers to transact with us and to support our online services. Our top management has hands on experience in equity research. We have invested considerable resources in building our research domain skills.  Leverage our content advantage for value added offerings We believe that the key to successful investment is research. trade online or purchase offline a wide range of personal financial products. online Internet enabled back office and MIS. We will continue to expand the breadth and depth of research and content on Indian business and finance. These factors allow us to provide their customers with an HKBK COLLEGE OF ENGG Page 23 . These branches allow our customers the opportunity to purchase personal financial products and trade at such branches with the assistance of our staff.

33% of trading in the NSE Cash market as on December 2005 and 89. This allows them to offer unbiased advice on not only equities but also on other investment products like mutual funds and insurance. give them a platform of choice to transact and support them with quality research. Their business plan is to become the leading investment advisor and intermediary for financial services in India. trade online or purchase offline a wide range of personal financial products.81% of trading in the NSE derivatives market as on December 2005. This also offers significant cross selling opportunities which will help in improving margins as incremental revenue will entail their customer acquisition and promotion costs. They intend providing a single convenient and reliable platform from which their users can obtain information. The accounting system is centralized one. They believe that their ability to offer multiple products across broking to insurance to mutual funds to commodities to small savings differentiates us from their competition. The key driver is to increase their customer base in all their products. Accounting Systems : Indiainfoline has well established accounting system. Their branches have been opened in cities after a detailed study of demographics and investment patterns. they are trained to customer queries as they ensure that the customer has a single point contact with us.IMPACT OF FII 0N INDIAN STOCK MARKET integrated online as well as offline solution to fulfill all their financial information and transaction needs. Their automated risk management procedures rely primarily on internally developed Risk Management System and systems provided by their vendors. Their offline network today covers cities that account for 91. These people are experienced in financial services and have undergone in-house training. They have developed a team of Customer Relationship Managers across India to handle key customer accounts. They manage the risks associated with their broking operations through use of internally developed credit algorithms implemented through fully automated risk management software and selective direct monitoring of certain operating parameters. SYSTEM The procedures both formal and informal. Apart from advice. This model is concerned with the systems that allocate and control money and materials as well as gather information. Every HKBK COLLEGE OF ENGG Page 24 . It uses Custom built software for this purpose. by which an organization operates and gathers information constitutes the systems of the company.

2005. They believe that the key to their continued growth lies in unleashing the entrepreneurial energy of their employees. These values have great meaning because they focus attention and provide a broader sense of purpose. training. morale and attitude. • • The company mainly focuses on quality placing at the right quality at the right place at the right time. If the top management increases shared values. As on December 31. With a motivated workforce companies are able to adapt well and compete Their Human Resources policy is based on the philosophy of “Owner Mindset”. In addition to salary. their employees get performance-based incentives on a quarterly basis. various Asset Management Companies and ICICI PRUDENTIAL LIFE INSURANCE COMPANY LIMITED train their staff. it will improve the morale of the employees. Page 25 HKBK COLLEGE OF ENGG . STAFF Staff means the human resource systems which include appraisals. SHARED VALUES The core or fundamental values that are shared in the organization and serve as guiding principles that are important.IMPACT OF FII 0N INDIAN STOCK MARKET transaction is restricted in this system and at the end of the day all the transactions are accounted. Make new innovations and brand itself as a huge reputation in the market. wages and the intangibles such as employee motivation. They have also implemented an Employee Stock Option Plan. • Each individual in the company is motivated so that each feels responsibility of working and tries to put in efforts for innovative ideas. They have developed extensive in-house training modules. the total employee strength of Their Company and Their subsidiaries was 1089. They encourage all employees to behave more as owners of their departments rather than employees. In addition. Their people are highly driven and work towards increasing India Info line’s brand and market share across product lines. They lay emphasis on “on the job training” where an experienced and senior person mentors a junior executive.

com” have developed into brands. “India infoline . Increasing competition from foreign players.com” and “5paise .2011 10481814902 10496275667 17044854 1031242 18076096 10499890998 1035676323 1305676323 11801951990 HKBK COLLEGE OF ENGG Page 26 . SWOT ANALYSIS STRENGHTS • • • • • • • • • • • • Integrated technology platform. Quality service. “one stop” shop. OPPORTUNITIES Increase in disposable income.IMPACT OF FII 0N INDIAN STOCK MARKET 4.2010 AS AT 31.2011 TABLE NO-03 PARTICULARS SOURCES OF FUNDS SHAREHOLDER'S FUNDS share capital reserves and surplus equity share warrants LOAN FUNDS secured loans unsecured loans TOTAL APPLICATION OF FUNDS 566800000 9801341902 113700000 571029330 9327546337 597700000 (In rupees) AS AT 31. ANALYSIS OF FINANCIAL STATEMENT BALANCE SHEET AS ON MARCH 31. Future changes in personal taxation rules can impact on insurance sales. Excellent distribution network. 5.03. THREATS Economic slowdown. Increase in complex financial instruments will drive demand for investment advisory services. Rapid penetration of internet and computers.03. WEAKNESSES Lack of a banking arm to complete the bank-broker-depository chain.

Here current ratio HKBK COLLEGE OF ENGG Page 27 .596 632414328 4906179 637320507 9156801378 25893936 1035288204 4302493074 2045913981 5609032 7749304291 5526753387 1486393718 7013147105 736157186 10499890998 3428126990 2143711902 3112993717 13085124 8697917733 5148542843 1567438721 6715981564 1981936169 11801951990 Ratio analysis CURRENT RATIO:-It is the ratio of Total current assets to total current liabilities. TABLE NO.29 : 1 7013147105 6715981564 2011 7749304291 (In Rupees) 2010 8697917733 GRAPH NO.IMPACT OF FII 0N INDIAN STOCK MARKET FIXED ASSETS(Including Intangibles) Gross Block Less : Accumulated depreciation and amortization Net block Capital Work-in progress INVESTMENTS Deferred Tax Assets CURRENT ASSETS.1 : 1 1.766.01 INTERPRETATION:.LOANS AND ADVANCES Sundry Debtors Cash and Bank Balances Loans and Advances Stock on hands LESS:CURRENT LIABILITIES Current Liabilities Provisions NET CURRENT ASSETS TOTAL 1436768398 -449446945 987321453 45134564 1032456017 8693123758 38154037 983180924 -350.04 PARTICULAR CURRENT ASSETS CURRENT LIABILITIES CURRENT RATIO 1.Current Ratio of 2 : 1 is considered satisfactory.

18 2. It has important implication from view point of the creditors. Here company maintained financial position is very well. owner and firm itself.29 : 1 in 2011 to 1. TABLE NO-06 PARTICULARS PAT SALES 2011 1058253789 5716022050 (In Rupees) 2010 128688137 6724401409 Page 28 HKBK COLLEGE OF ENGG . TABLE NO-05 PARTICULAR TOTAL DEBT SHAREHOLDERS EQUITY DEBT TO EQUITY RATIO 3.02 INTERPRATATION:-It helps to measure long term financial solvency of a firm. NET PROFIT MARGIN:-Net profit margin measures the relationship between profit and sales.1 : 1 in 2010.28 2011 18076096 566800000 (In Rupees) 2010 1305676323 571029330 GRAPH NO .IMPACT OF FII 0N INDIAN STOCK MARKET is decreased 1. DEBT TO EQUITY RATIO :-It’s shows the relationship between borrowed funds and owner’s capital.

Mostly all the concepts and theories.IMPACT OF FII 0N INDIAN STOCK MARKET NET PROFIT RATIO 18% 19% GRAPH NO. LEARNING EXPERIENCE The learning experience gained by me during the in-plant training was very much practical oriented.07 PARTICULARS NPA + INTEREST TOTAL ASSETS ROA 2011 1136710398 10499890998 10.83% 6. RETURN ON ASSETS:-This profitability ratio Is measured In terms of the relationship between net profits and assets.because slow growth in sales. which I studied in the class. (In Rupees) 2010 3403131531 11801951990 28. HKBK COLLEGE OF ENGG Page 29 .83% in 2010 to 10.Here ROA Decreased from 28.04 INTERPRATATION :. TABLE NO.03 INTERPRATATION:. are applicable practically.82% GRAPH NO.India Infoline has nearly 18-19% of net profit margin on its sales so we called it satisfactonary return.82% in 2009.

which will go a long way in the horizon of my career. commodities. motivation classes and extracurricular activities . The training has exposed me to many facts of an organization and also helped me to gain practical knowledge. I became more aware of the stock market and the role played by India infoline. now it is in Equity.Research etc.IMPACT OF FII 0N INDIAN STOCK MARKET The overall study of the organization reveals that the company has grown tremendously since its incorporation from 1995. incentives and extensive care is taken by providing facilities such as canteen. The company has an effective human resources department where in the employees are given excellent packages. as it gives insights into the working environment of an organization. portfolio management services. I had a great time working on the project. HKBK COLLEGE OF ENGG Page 30 . medical facilities.