CUSTOMER RELATIONSHIP MANAGEMENT

(Summer Internship Project)
{May-June 2009} For

Submitted By: Tushar H Sevak (Roll No. F-52) Mohit M. Bhendarkar (Roll No. D- 08) Under the Guidance of : Mr. Jicky Thomas (Product & Branch Head)

Institute of Business Management & Research
8/182, Sunrise Park, Near ASIA School, Driven In Road, Ahmedabad - 380054. Ph. : 079-26858717 / 40052917 Email : Ahmedabad@ibmrindia.org website : www.ibmrindia.org

1

INDEX
1. 2. 3. 4. Particular Introduction of the CRM Objective of the CRM Research Methodology Literature Review
Training  Importance & Needs of Training  Types of Training  Methods of Training  Recommendation & Conclusion  Training Adopted by us at Angel  Training Under Different Departments  Problems Faced at the Time of Training  Suggestions to Improve 

Page No.
5

16 19 24 42 42 43 46 47 48 50 51

5.

Industry Analysis
 Industry Analysis at Indian Level

51 62 69 76 80 87
2


  

Past Performance
SWOT Analysis Major Players in the Industry Products & Services

6.

Data Analysis

7. Limitations 8. Findings 9. Suggestions 10.Bibliography

94 95 97 98

Preface
The Summer program offered by the IBMR College, is an enlightening course for those who are wishing to master their Business administration skills, with their knowledge. This is an unique course which is the collaboration of MBA. It not only developes your management talent but also develop your technical skill. It imparts the necessary theoretical knowledge about the field but also provides an opportunity to practically experience the application of the business administration fundamentals in the corporate as well as the noncorporate sector. I was unaware about the role of exchanges and depositories in the secondary market. Here I really got practical knowledge about the role of SEBI, NSE, and BSE etc. in the secondary market. Now I am aware about the buying and selling system in the secondary market through broking firm or sub-broker. I am very much thankful to Mr. Jicky Thomas, Branch & Product Head, main branch Mahalaya complex C. G. Road, Ahmedabad. I therefore have pleasure to present my training report, which, I hope as per the curriculum requirements.

Acknowledgement
“There is no such thing as a self made man, we all are made up thousands of others” – George Adams.
3

Viral Kapadia (Business Development Manager) They helped me during my entire training program. To mention. Jicky Thomas and Mrs. Introduction to CRM 4 . I am grateful to Angel Broking Limited for allowing me to undertake my summer training in the organization. I would like to extend my gratitude towardsMr. Harshit Bhavsar (Business Development Head) Mr. Pankti shah who facilitated me in my practical learning.I am indebted to my faculty. the Faculty of Social Work for providing the students an opportunity to experience the practical working of the knowledge imparted to us theoretically. I would also like to thank Mr.

CRM is based on the premise that. and build up a network with individuals consumers and to continuously strengthen the network for mutual benefit of both sides. individualized and value-added contacts over a period of time”. remind customers of service requirements. Another narrow. know what other products a customer had purchased.000+ customer surveys conducted by Angel Broking Ltd.Before we begin to examine the conceptual foundations of CRM. The essence of the information technology revolution and. the World Wide Web is the opportunity to build better relationships with customers than has been previously possible in the offline world. and so forth. Growth Strategies International (GSI) performed a statistical analysis of Customer satisfaction data encompassing the findings of over 7. what is CRM? A narrow perspective of customer relationship management is database marketing emphasizing the promotional aspects of marketing linked to database efforts. yet relevant. viewpoint is to consider CRM only as customer retention in which a variety of after marketing tactics is used for customer bonding or staying in touch after the sale is made. people providing service. salespeople. The core theme of all CRM and relationship marketing perspectives is its focus on cooperative and collaborative relationships between the firm and its customers. maintain. CRM (customer relationship management) is an information industry term for methodologies. and perhaps the customer directly could access information. an enterprise might build a database about its customers that described relationships in sufficient detail so that management. Shani and Chalasani define relationship marketing as “an integrated effort to identify. By combining the abilities to respond directly to customer requests and to provide the customer with a highly 5 . For example. match customer needs with product plans and offerings. it will be useful to define. and usually Internet capabilities that help an enterprise manage customer relationships in an organized way. by having a better understanding of the customers’ needs and desires we can keep them longer and sell more to them. through interactive. and/or other marketing actors. in particular. software.

and sustain long-term customer relationships than ever before. companies have a greater ability today to establish. This has required heavy doses of mass advertising and price-oriented promotions to customers and channel members. Today. This requires a different mindset and a 3 different and new set of tools. the tone of the conversation has changed from customer acquisition to retention. manage marketing 6 . The ultimate goal is to transform these relationships into greater profitability by increasing repeat purchase rates and reducing customer acquisition costs. E.1 as it is called. nurture. Oracle. Kana and others have filled this CRM space with products that do everything from track customer behavior on the Web to predicting their future moves to sending direct e-mail communications. According to one industry view. This has created a worldwide market for CRM products and services of $34 billion in 1999 and which is forecasted by IDC to grow to $125 billion by 2004. this revolution in customer relationship management or CRM. has been referred to as the new “mantra” of marketing. Broadvision. customized experience. Indeed. marketers have been trained to acquire customers. Traditionally. either new ones who have not bought the product category before or those who are currently competitors’ customers.interactive. CRM consists of:  Helping an enterprise to enable its marketing departments to identify and target their best customers. the answer is usually that acquisition dominates retention.piphany.2 Companies like Siebel.3 The need to better understand customer behavior and focus on those customers who can deliver long-term profits has changed how marketers view the world. Net Perceptions. A good thought experiment for an executive audience is to ask them how much they spend and/or focus on acquisition versus retention activities. While it is difficult to perfectly distinguish the two activities from each other.

which means damage to the bottom line. How CRM impacts that business path is a continuing source of debate in the world of corporate management. taking orders using mobile devices)  Allowing the formation of individualized relationships with customers. identifying the most profitable customers and providing them the highest level of service. CRM is being thrust into corporate budgets and talked about as a critical initiative by hundreds of Fortune 1. account. and generate quality leads for the sales team. Managing relationships with customers has become a critical organizational competency. This course will teach you how to select the right tools for your business-.000 and tens of thousands of other companies. It has gone from being an important edge in the business world to a necessary tool for survival. But. with the aimof improving customer satisfaction and maximizing profits. and streamlining existing processes (for example.  Providing employees with the information and processes necessary to know their customers. understand their needs. Despite the uncertainty of the economy. and sales management by optimizing information shared by multiple employees. and distribution partners. Get winning strategies for acquiring and retaining customers by leveraging the latest advanced technologies. CRM--Customer Relationship Management--has entered the mainstream.so it can grow today--and on into the future. what is CRM and how does it change the way companies do business? The changes in the world have been so dynamic and so dramatic that the path is not necessarily all that obvious. its customer base. But how do you not lag when customers are moving lightning fast to demand constant changes in the speed to complete their 7 . and effectively build relationships between the company. The notion of the customer as king or queen is once again the rule. Lagging means lost customers.  Assisting the organization to improve telesales. How you treat this is a missioncritical business issue.campaigns with clear goals and objectives.

First among these was that it was simply so difficult and expensive to track and keep the high volume of 8 .transactions? How do you keep your customers when the move to another company is nothing more than a mouse click and a minute away? CRM is the answer. however. In the short term. it proved to be an unwieldy process that was better in theory than in practice for a variety of reasons. a strategy that leverages very advanced technologies is the way to cut to the 21st Century business chase. History of CRM Customer Relationship Management (CRM) is one of those magnificent concepts that swept the business world in the 1990’s with the promise of forever changing the way businesses small and large interacted with their customer bases. Customer Relationship Management.

As companies began tracking database information. however. more customizable Internet solutions have hit the marketplace. As the price of newer. CRM was now being used as a way to increase sales passively as well as through active improvement of customer service. they realized that the bare bones were all that was needed in most cases: what they buy regularly. they began giving back to their customers not only in terms of the obvious goal of improved customer service. bonus points on credit cards and a host of other resources that are based on CRM tracking 3333 customer activity and spending patterns. however. gifts and other perks for customer loyalty. In the case of larger. what they do. True CRM comes of age 9 . In the case of smaller clients. In the last several years. key clients it was a valuable tool for keeping the lines of communication open and tailoring service to the clients needs.records needed accurately and constantly update them. it tended to provide repetitive. Instead of simply gathering data for their own use. but in incentives. Advances in the 1990’s In the 1990’s companies began to improve on Customer Relationship Management by making it more of a two-way street. In the beginning… The 1980’s saw the emergence of database marketing. which was simply a catch phrase to define the practice of setting up customer service groups to speak individually to all of a company’s customers. This was the beginning of the now familiar frequent flyer programs. newer software systems and advanced tracking features have vastly improved CRM capabilities and the real promise of CRM is becoming a reality. what they spend. survey-like information that cluttered databases and didn’t provide much insight. competition has driven the prices down so that even relatively small businesses are reaping the benefits of some custom CRM programs.

it became feasible to really use the information in a dynamic way. The three sectors of business that rely most heavily on CRM -. Branching of information. CRM enabled the development of new strategies for more cooperative work between these different divisions through shared information and understanding. The financial services industry in particular tracks the level of client satisfaction and what customers are looking for in terms of changes and personalized features. customer service and marketing. CRM became a way to continuously update understanding of customer needs and behavior. sub-folders. The Internet provided new possibilities and CRM took off as providers began moving toward Internet solutions.and use it to great advantage -. As software companies began releasing newer. Software specific to the industry can give financial service providers truly impressive feedback in these areas. leading to increased customer satisfaction from order to end product. Today. a variety of high tech corporations and the telecommunications industry. several factors have contributed to the rapid development and evolution of CRM. These include: 1. CRM is still utilized most frequently by companies that rely heavily on two distinct features: customer service or technology. The Internet provided a huge boon to the development of these huge databases by enabling offsite information storage. In recent years however. Instead of feeding information into a static database for future reference. where before companies had difficulty supporting the enormous amounts of information.Real Customer Relationship Management as it’s thought of today really began in earnest in the early years of this century. and custom tailored features enabled companies to break down information into smaller subsets so that they could evaluate not only concrete statistics. The growing de-intermediation process in many industries due to the advent of sophisticated computer and telecommunication technologies that allow producers to directly interact with end10 . but information on the motivation and reactions of customers.are financial services. With the increased fluidity of these programs came a less rigid relationship between sales. They also track changes in investment habits and spending patterns as the economy shifts. more advanced solutions that were customizable across industries.

When companies embraced TQM it became necessary to involve customers and suppliers in implementing the program at all levels of the value chain. Thus several companies such as Motorola. This needed close working relationships with the customers. banks insurance. it minimizes the role of the middlemen. 6. Customer expectations are changing almost on a daily basis. General Motors. Databases and direct marketing tools give them the means to individualize their marketing efforts. requiring flexibility and rapid adoption to technologies. how to communicate with the companies’ various available channels? Also nowadays consumers expect a high degree of personalization. 7. ATMs and call centre that must be synchronized with customer’s nonelectronic activities. software or household appliances and even consumables. 2. 4. networking and manufacturing technology have helped companies to quickly match competition. Advances in information technology. For example. Emerging real time. Ford. Xerox. etc formed partnering relations with suppliers and customers to practice TQM. Toyota.customers. in many industries such as airlines. Newly empowered customers. who choose. 11 . Since services are typically produced and delivered at the same institution. interactive channels including e-mail. Another force driving the adoption of CRM has been the total quality movement. 3. 5. The growth in service economy. As a result product quality and cost are no longer significant competitive advantages. marketers are forced to be more concerned with customer retention and customer loyalty. Other programs such as JIT and MRP also made use of interdependent relationships between suppliers and customers. In the current era of hyper competition. IBM. the de-intermediation process is fast changing the nature of marketing and consequently making relationship marketing more popular. The speed of business change.

a business (e. calls in or walks into any location should not make a difference to the service provided based on the personal profile of the business client. As several researches have found out retaining customers is less expensive and more sustainable competitive advantage than acquiring new ones. Definition: “CRM is concerned with creating improved shareholder value through the use of customer centric business processes and the development of appropriate relationships with consumers. operations and marketing capabilities to deliver added value to the customers.” Implementing CRM: CRM requires an integration of a firm's resources. 10. 9.8. It is enabled through:     Information Processes Technology Applications 12 . whether the customer books online.g. On the supply side it pays more to develop closer relationships with a few suppliers than to develop more vendors. hotel) customer’s profile and personal references should be accessible to the business (or hotel) irrespective of channel i. people. The globalization of world marketplace makes it necessary to have global account management for the customers.e. For example. CRM should provide businesses and organizations with a ‘single view’ of their customers and across irrespective of the interactive channel or medium through which the customer accesses the service or product.

etc)  Product Configuration  Data Migration and Integration  Staff Training  Customer Segmentation: For CRM to be effective. software. This also requires the organization to have strategies to target consolidated customer segments. To implement CRM. the following steps must be followed:  Develop a CRM framework  Align current business processes  Design new cross-functional business processes (where required)  Develop Functional Specifications (client-side services)  Develop Technical Specifications  Match Technical Specifications to available technology (Systems. 13 . the organization’s customer base must be stratified into segments based on commonalities amongst groups’ of individuals and customers.A firm that wants to implement CRM must align it's business processes cross-functionally in the best possible way to allow increased customer focus with an aim to deliver added value to the customer.

2. Reduced Cost of Service: a customer relationship strategy should reduce the cost of service for both the organization and it’s customers and increase satisfaction levels. A lot of CRM programs fail because they are assembled with disparate components that aren't designed to work together as part of a complete CRM system designed to meet organizational objectives. Lack of supportive business processes: Because business processes and organizational goals are not part of a strategic CRM plan tied to organizational goals and objectives. Pitfalls to avoid: Many CRM programs fail for two reasons: 1. 14 . it requires that the organization creates a seamless enterprise view. the greater the customer’s stake in helping to ensure that the relationship works and the more convenient and loyal the customer becomes.  Tie-in’s over time: The greater the effort a customer spends on a relationship over time. Lack of an enterprise perspective: For Relationship Marketing to be effective.  Service as a differentiator: The more competitive a market becomes the more a business will need to rely on its superior product quality and quality of service to differentiate itself from other businesses and providers.

Customer Relationship Management Model CREATE A DATA BASE ANALYSIS CUSTOMER SELECTION CUSTOMER TARGETING RELATIONSHIP MARKETING PRIVACY ISSUES METRICS 15 .

Customer Retention Programs FREQUENCY/ LOYALTY PROGRAMS CUSTOMER SERVICE CUSTOMIZATION CUSTOMER RELATIONSHIP MANAGEMENT SATISFACTION REWARDS PROGRAMS COMMUNITY BUILDING 16 .

A good CRM program will allow a business to acquire customers. and technical assistance on web sites that are accessible 24 hours a day. improving customer service. and then design a service strategy for each customer based on these individual requirements and expectations. repurchase times. service the customer. before customer occur 17 . retain good customers. increase the value of the customer to the company.  Provide a mechanism to track all points of contact between a customer and the company.  Help to identify potential problems quickly.  Provide a fast mechanism for managing and scheduling followup sales calls to assess post-purchase cognitive dissonance. but is not limited to. This includes. in its broadest sense. product use information. and all users of the system see the same view of the customer (reduces confusion). and repurchase frequencies. A good CRM program can improve customer service by facilitating communication in several ways:  Provide product information. means managing all interactions and business with customers. 7 days a week  Identify how each individual customer defines quality.Objective of the study of CRM CRM. repurchase probabilities. and do it in an integrated way so that all sources and types of contact are included. and determine which customers can be retained or given a higher level of service.

Devising a way to Retain and grow with those KOMs. with the help of feedback form that why customers are not trading with Angel  To know. Provide a user-friendly mechanism for registering customer complaints (complaints that are not registered with the company cannot be resolved. the needs analysis of customer To understand. Moving further ahead Satisfaction Delightment LOYALITY To develop Strategy and action plan on quarter & annual basis. how to maintain relationship with customer? To know. To develop integrated Database.  Provide a fast mechanism for handling problems and complaints (complaints that are resolved quickly can increase customer satisfaction). Assessing the need of Potential KOMs. repair. and ongoing support (improve efficiency and effectiveness) Mechanism to evaluate Potential KOMs.  Use internet cookies to track customer interests and personalize product offerings accordingly  Use the Internet to engage in collaborative customization or real-time customization  Provide a fast mechanism for managing and scheduling maintenance. and are a major source of customer dissatisfaction). Ways to meet those needs. the customer perception about company’s products & services             18 . Identify the softer elements.  Provide a fast mechanism for correcting service deficiencies (correct the problem before other customers experience the same dissatisfaction). To gain knowledge about consumer behaviour To know.

Thus the single adults shall require a new car stereo and as he grows into a married couple his needs grow into appliances.  Maximizing Life time value Exploit up-selling and cross-selling potential. By identifying life stage and life event trigger points by customer. marketers can maximize share of purchase potential. Referral sales invariably are low cost high margin sales.  Keeping Existing Customers Grading customers from very satisfied to very disappointed should help the organization in improving its customer satisfaction levels and scores. Any company will like its mindshare status to improve from being a suspect to being an advocate. 19 .  Increase Loyalty Loyal customers are more profitable. To know. It has to innovate and meet the very needs of its customers so that they remain as advocates on the loyalty curve. As the satisfaction level for each customer improves. Company has to invest in terms of its product and service offerings to its customers. so shall the customer retention with the organization. the grievances among the customers about products & services The CRM program can be integrated into other cross-functional systems and thereby provide accounting and production information to customers when they want it.

Information on individual customers is utilized to develop frequency marketing. In the mass 20 . By using online information and databases on individual customer interactions. Partnering Programs The third type of CRM programs is partnering relationships between customer and marketers to serve end user needs. and after marketing programs in order to develop relationship with high-yielding customers. here marketers appoint customer teams to husband the company resources according to individual customer needs. The basic premise of continuity marketing programs is to retain customers and increase loyalty through long-term special services that has a potential to increase mutual value through learning about each other. marketers aim to fulfill the unique needs of each mass-market customer. interactive marketing. individual marketing has been in place of quite sometime. Continuity Marketing Programs Take the shape of membership and loyalty card programs where customers are often rewarded for their member and loyalty relationships with the marketers.Research Methodology for CRM Meeting and satisfying each customer’s need uniquely and individually. Known as Key Account Management Program. In the mass markets individualized information on customers is now possible at low costs due to the rapid development in the information technology and due to availability of scalable data warehouses and data mining products. In the context of business-to-business markets.

markets. Redefining CRM around innovation. The remaining question is whether companies are prepared to take the initiative and expand the definition of customer relationship management to include the process of innovation. CRM must provide the customer intelligence that feeds information back into the enterprise’s knowledge management processes where it can trigger new innovation processes. A market driven innovation process must include both strategies that are focused on satisfying customer requirements as well as strategies focused at redefining customer requirements. sales. The fourth function that often is the source of a competitive edge is that of innovation. two types of partnering programs are most common: Cobranding and affinity partnering. Customer service automation must be designed to empower the customer with the option of assisting with the design of the value offering. Marketing automation must ensure that the innovation processes are actually market driven. Companies must continually reinvent themselves to deliver an improved and often a totally new value offering to their customer base. The dialog must start rather earlier than later because the competitive window of traditional CRM is decreasing and customer demands for a more innovative and responsive enterprise will increase Architecture of CRM There are three parts of application architecture of CRM: 21 . Various process models have been built around how these functions are integrated and operated in a customer oriented enterprise. The pressure to deliver results within the traditional definition of CRM already overwhelms companies. There is however a fourth critical function that is lacking in most CRM models. marketing and support. marketing and service can identify new competitive opportunities for an enterprise. significant value can be derived from faster time to market cycle times and with new processes and services. Missing process of CRM Traditionally customer relationship management (CRM) revolves around the three functions of selling. Sales automation should be integrated with the innovation process by ensuring that all sales channels are prepared and ready to take new processes and services to market before competitive forces can react. When CRM is integrated into the innovation process.

service) 2. as well as the information necessary for carrying out the tasks and interfaces to back-end applications are being provided and activities with customers are being documented for further reference.1. Tasks resulting from these processes are forwarded to resources responsible for them. Operational CRM Operational CRM means supporting the "front office" business processes. sales administration. email. The operational part of CRM typically involves three general areas of business: Sales force automation (SFA) SFA automates some of the company's critical sales and sales force management functions. Operational CRM provides the following benefits:  Delivers personalized and efficient marketing. lead/account management. SMS. SFA tools are designed to improve field sales productivity. as well as performance management. buying habits.ensures the contact with customers (phone. for example. which include customer contact (sales. Operational . sales. in person) 1. web. and service through multi-channel collaboration  Enables a 360-degree view of your customer while you are interacting with them  Sales people and service engineers can access complete history of all customer interaction with your company. 22 . regardless of the touch point. marketing and service). Analytical . Collaborative . implements business intelligence aliketechnology 3.support to analyze customer behavior. post. contact management. Key infrastructure requirements of SFA are mobile synchronization and integrated product configuration. forecasting.automation to the basic business processes (marketing. fax. sales. and demographics. quote management. keeping track of customer preferences.

and also encourage new customers. including competitors. Enterprise marketing automation (EMA) EMA provides information about the business environment. For example. and reliability. and information requests. Many call centers use CRM software to store all of their customer's details. kiosk. phone/fax. Key infrastructure requirements of CSS include computer telephony integration (CTI) which provides high volume processing capability. Traditional internal help desk and traditional inbound call-center support for customer inquiries are now evolved into the "customer interaction center" (CIC). you might be able to check your bank balance via your WAP phone without ever having to talk to a person. using multiple channels (Web. product returns. industry trends. Functions include demographic analysis. complaints. It is the execution side of campaign and lead management. 2. face-to-face. a company aims to make cost savings. and also keeping all information of a customer in one place.Customer service and support (CSS) CSS automates some service requests. the system can be used to retrieve and store information relevant to the customer. and saving your time. etc). variable segmentation. and predictive modeling occurs on the analytical (Business Intelligence) side. and macro-environmental variables. When a customer calls. CRM solutions can also be used to allow customers to perform their own service via a variety of communication channels. Integrated CRM software is often also known as "front office solutions. The intent of EMA applications is to improve marketing campaign efficiencies. By serving the customer quickly and efficiently. Analytical CRM 23 . saving money for the company." This is because they deal directly with the customer.

reporting. data gathered within operational CRM and/or other sources are analyzed to segment customers or to identify potential to enhance client relationship. based on feedback from earlier analysis and decisions.In analytical CRM. up-sell  Retention: Retaining customers who leave due to maturity or attrition.  Predictive modeling of customer attributes  Strategy and Research Analysis of Customer data may relate to one or more of the following analyses:  Contact channel optimization  Contact Optimization  Customer Acquisition / Reactivation / Retention  Customer Segmentation  Customer Satisfaction Measurement / Increase  Sales Coverage Optimization  Fraud Detection and analysis  Financial Forecasts  Pricing Optimization  Product Development  Program Evaluation  Risk Assessment and Management Data collection and analysis is viewed as a continuing and iterative process. 24 . Customer analysis typically can lead to targeted campaigns to increase share of customer's wallet.  Information: Providing timely and regular information to customers. metrics. Therefore.  Modification: Altering details of the transactional nature of the customers' relationship. most successful analytical CRM projects take advantage of a data warehouse to provide suitable data. Examples of Campaigns directed towards customers are:  Acquisition: Cross-sell. Business Intelligence is a related discipline offering some more functionality as separate application software.  Analysis typically covers but is not limited to:  Decision support: Dashboards. performance etc. business decisions are refined over time. Ideally.

e-mail) and supports co-ordination of employee teams and channels. letter. phone. unstructured. processes and data together so companies can better serve and retain their customers. web.3. Collaborative CRM Collaborative CRM facilitates interactions with customers through all channels (personal. conversational and/or transactional in nature. It is a solution that brings people. fax. The data/activities can be structured. Collaborative CRM provides the following benefits:  Enable efficient productive customer interactions across all communications channels  Enables web collaboration to reduce customer service costs  Integrates call centers enabling multi-channel personal customer interaction  Integrates view of the customer while interaction at the transaction level 25 .

state of art research department. Angel has an in-house. Dinesh Thakkar and he is well supported by Mr. Mumbai. The group is well supported by a professional and qualified research team and efficient operations and back office team. Angel Broking Limited is a corporate member of The Stock Exchange. which comprises of highly dedicated and qualified individuals. The company in its Endeavour to give its client the best has opened up several branches all over Mumbai. which are efficiently integrated with the Head Office. Gandhi. Mukesh Gandhi. Angel Broking Limited is managed by Mr. The membership of the company with The Stock Exchange Mumbai was originally in the name of Mukesh R. which was eventually turned into a corporate membership in the name of Angel Broking Limited. 26 . Angel believes in reaching out to the customer at the farthest end rather than by reaching out to them. a fifteen years veteran in the market.Literature Review Company Profile: Angel Broking Limited is one of the leading and professionally managed stock broking firm involved in quality services and research.

Angel Broking Limited is primarily into retail stock broking, with a customer base of retail investors, which has been increasing at a compounded growth rate of 100% every year. The company has huge network sub-brokers in Mumbai and other places outside Mumbai, registered with SEBI, who act as channel partners for the company. The company presently has the total staff strength of around 150 employees who are spread accordingly across the head office and all the branches. Angel has empowered its physical presence throughout India through various strategies which it has been adopting efficiently and effectively over a period of time, like opening up of branches at various places, tie-ups with various agencies and sales agents, buyouts of smaller regional outfits and appointment of sub-brokers and franchisees. Moreover, Angel Broking Ltd. has been tapping and including high net-worth and self-employed individuals to its vast array of clients. Angel has always strived in the direction of delivering ultimate client satisfaction and developing stronger bonds with its customers and chose partners. Angel has a vision to introduce new and innovative products and services regularly. Moreover Angel has been one among the pioneers to introduce the latest technological innovations and integrate it efficiently within its business. Angel Broking Ltd tryst with excellence in customer relations began in 1987. Today, Angel has emerged as one of the most respected Stock-Broking and Wealth Management Companies in India. With its unique retail-focused stock trading business model, Angel is committed to providing ‘Real Value for Money’ to all its clients. The Angel Group is a member of the Bombay Stock Exchange (BSE), National Stock Exchange (NSE) and the two leading Commodity Exchanges in the country: NCDEX & MCX. Angel is also registered as a Depository Participant with CDSL

Angel’s Business

Equity Trading
27

      

Commodities Portfolio Management Services Mutual Funds Life Insurance Personal Loans IPO Depository Services Investment Advisory

Angel’s Presence
   

Nation-wide network of 21 Regional Hubs Presence in 124 cities Over 6810 Sub-Brokers & Business Associates More than 5.9 lakh Clients

Angel Group
   

Angel Broking Ltd. Angel Capital & Debt Market Ltd. Angel Commodities Broking Ltd. Angel Securities Ltd.

28

Board of Directors:  Mr. Dinesh Thakkar Founder Chairman & Managing Director

The Angel Group of Companies was brought to life by Mr. Dinesh Thakkar. He ventured into stock trading with an intention to raise capital for his own independent enterprise. However, he recognized the opportunity offered by the stock market to serve individual investors. Thus India’s first retail-focused stock-broking house was established in 1987. Under his leadership, Angel became the first broking house to embrace new technology for faster, more effective and affordable services to retail investors. Mr. Thakkar is valued for his understanding of the economy and the stock-market. The print and electronic media often seek his views on the market trend as well as investment strategies.
 Mr. Lalit Thakkar Director – Research

29

Mr. consultancy and advisory services. Mr. His views on the market trend are often quoted in the print and electronic media. Ambit Corporate Finance and Ernst & Young. He has been with the group since August 2004. Lalit Thakkar is the motivating force behind Angel’s highly acclaimed Research team. 30 .Mr. Mr. treasury. When it comes to analyzing the market. investment banking. Majumdar has led many successful initiatives for the group. Before joining the Angel Group. He’s been a part of the senior management team since the Angel Group’s inception. His hands-on experience and fundamental knowledge of the market can predict the market trend early. to name a few. Amit Majumdar Chief Strategy Officer A chartered Accountant by qualification. Research-based & personalized advisory services are Angel’s forte. Lalit Thakkar has undoubtedly been the brain behind it. and Mr. He has handled several functions of the group like finance and operations.  Mr. Mr. Lalit Thakkar is truly a genius. Amit Majumdar is a key member of Angel’s strategic decision-making process. He has rich experience in finance. Majumdar has been associated with Rabo India Finance. His technical and fundamental outlook has provided impetus to Angel’s market research team.

Agrawal began his career with the Angel Group as Finance and Operations Consultant. Rajiv Phadke is a strategic thinker with expertise in the field of corporate planning. Mr. Vinay Agrawal leads the Equity Broking business at Angel. HRD and quality management. Product Development and E-broking initiative. Mr. Rajiv Phadke has actively contributed to the Group’s growth over the last four years. He is also a well-known speaker in the HR and business development circuit and his views are featured on various electronic media as well. Mr. Nagarjuna Securities and Tata Exports Ltd. financial services. Mr. Mr. He is actively involved in exploring new ways to adopt technology for business enhancement. Vinay Agrawal Executive Director – Equity Broking Mr. Holding a major in Finance. With over 32 years of experience. A Chartered Accountant by qualification. Times Guaranty Financials. and since then he’s quickly climbed up the corporate ladder.  Mr. Operations. His career horizon spans Motilal Oswal Securities. 31 . brand-building. Phadke has successfully led SBUs and financial companies from concept to commissioning. which comprises Business Development. international marketing. Rajiv Phadke Executive Communications Director – HR & Corp.

Hitungshu Debnath leads the 32 . Mr. Hitungshu Debnath Executive Director . in the past. Risk Management and Operations. Mr. Mr. His area of focus is Business Development. Nikhil Daxini has been instrumental in introducing the concept of professional marketing of broking services at Angel.  Mr.Distribution & Wealth Management A marketing professional and a British Chevening scholar from the London School of Economics. Mr. Nikhil Daxini Executive Director . He has been associated with HDFC Bank Ltd.Sales and Marketing With an MBA in finance. Daxini has immense experience in the marketing of financial products and services.

Alliance Capital Asset Management and HDFC Asset Management Ltd. Mudit Kulshreshtha Executive Director . Mr. It includes the distribution of Insurance. He has been associated with reputed consulting firms like Deloitte Consulting India. Indian School of Business and IIT.K. Arthur Andersen and WNS Global.  Mr.Business Intelligence & Analytic Mr.  Mr. Syam brings with him over 18 years of experience in the field of Transaction Banking. Mudit Kulshreshtha has more than 12 years experience in the field of strategy and business consulting. Ernst and Young. in the past.. Mr. 33 . Debnath has over 18 years of industry experience.. Treasury Banking.Distribution and Wealth Management business at the Angel Group. Fortress Financial Services Ltd.S. IPOs. He has been associated with Times Guaranty Financial Ltd. NASSCOM. Wholesale Banking. Mudit Kulshreshtha heads the advance analytics and strategic business intelligence division at Angel. Santanu Syam Executive Director – Operations Mr. and U. He has advised several big clients in the U. personal loans and other wealth management products. He is also a known speaker at public seminars and conferences organised by CII. mutual funds. With a Bachelor’s degree in Engineering and PhD in Economics.

He has also attended Banking & Technology seminars organised by SCB Singapore. Shah leads all IT-related activities from planning and budgeting to implementation and maintenance. Shah has over 18 years of industry experience. Ketan Shah Associate Director . And Mr.Information Technology IT is a strategic function at Angel. Mr.  Ms.Consumer Banking and CBS. Pinky Kothari is responsible for development and expansion of the Angel Group’s business in Southern India. Syam followed up his Engineering degree with an MBA.Sales And Marketing Ms. He has been involved in various aspects of Business Operations in his previous assignments. She was then appointed the head of Surat Branch and the South Gujarat region. Ketan Shah is involved in the designing of Angel’s IT policies and Strategies. BSE India & Euro Finance. before assuming the role of Associate Director. Mr.  Mr. 34 . He started his career with ANZ Grindlays Bank and he was also associated with Standard Chartered Bank in India as Director Transactional Banking. Mr. She started her career at Angel as Business Development Executive. Pinky Kothari Associate Director .

Karvy Consultants and with BLB Ltd in the past. He had been associated with Religare Commodities. He has been involved in several management activities. Mathur is a regular speaker on all the prominent financial news channels. Mathur holds a Post Graduation degree in Financial Management and Business Finance. treasury operations. Mr.  Mr. corporate and strategic planning. He brings with him over 14 years of experience in the financial markets. research activities in Futures and Options markets in his past assignments. Naveen Mathur Associate Director – Commodities Business A CFA of 1997. Mr.A qualified Company Secretary and an MBA in Finance. Ms. 35 . Kothari has vast experience in business development in the financial services industry.

Application-Based  Angel Diet  Angel Anywhere USP’s of Angel E-broking  Multiple Exchanges on a single screen. confidently. Our e-broking services are specially designed for the netsavvy traders and investors who prefer operating from their home or office. MCX. NCDEX  Hot keys similar to broker’s terminal 36 . Browser-Based  Angel Investor  Angel Trade 2. online capabilities linked to an information database to help customers invest.Products and Services of Angel We have been trained and introduced to Angel’s various product and services. 1. Including. which are as follows: E-Broking: Angel offers several user-friendly services to customers so that they can manage their stock portfolio.BSE. There are two types of software. through the internet. NSE-F&O.

Angel Oyster Chief Investment Officer Mr. DP Transactions. intra-day calls  24x7 Back-office  Viewing ledger. Rajen Shah Bottom up concentrated portfolio of Mid Cap & Small Cap Companies with emphasis on Value Investing. Sauda summary. PRODUCT BOUQUET a. Portfolio Management Services (PMS) is one such service that is fast gaining eminence as an investment avenue of choice for High Networth Investors like you. Investment Management is an art and a science in itself. Holdings.  Auto pay-in of shares & Online Securities Pay-Out  Instant transfer of fund & Online Funds pay-out request  Highly secure and confidential Portfolio management service Successful investing in Capital Markets demands ever more time and expertise. The Portfolio Management Service combined with competent fund management. ensures a rewarding experience for its clients. Professional Investment Management Services are no longer the privilege of only large institutional investors. Open Position. 37 . PMS is a sophisticated investment vehicle that offers a range of specialized investment strategies to capitalize on opportunities in the market. Auction Details. Streaming quotes  Products/Software/Back office training for all E-broking clients  In-depth research & technical chart. Bills. dedicated research and technology. Contracts.

Investor Profile: • The scheme would be suited for investors with low to medium risk appetite.50% brokerage on transactions b.Angel Blue-chip Fund Manager Mr. Siddarth Bhamre Bottom-Up concentrated portfolio with Equities & Derivatives. 0. • Suitable for HNI Clients and Corporate who want to park money for consistent Return from the market even if market remained flat. Investor Profile: • The scheme would be suited for investors with medium to low risk appetite.10% on Delivery and Rs.Investor Profile: • The scheme would be suited for investors with medium to high risk appetite having long term perspective Fees and Charges 2% Asset Management Charges 0. having long term perspective.50% Brokerage on transactions Angel Equity Derivatives Fund Fund Manager Mr. having long term perspective. and emphasis on Hedging by using volatility in the Markets. Phani Sekhar Diversified Equity portfolio of Large cap & Mid Cap Companies.Angel Growth 38 . Fees and Charges • 2% Asset Management Fees • 0.01% on futures c.50 flat on options. Fees and Charges • 2% Asset Management Charges • 0.

Fees and Charges: • 2% Asset Management Charges • 0. Investor Profile: • The scheme would be suited for investors with moderate risk appetite. • Recommended investment horizon is 15 to 18 months.Features of Angel Gold  A premium service for clients who needs professional guidance on  long term investments 39 . Phani Sekhar Diversified Equity portfolio of Large cap & Mid Cap Companies with emphasis on growth Investment.5% brokerage on transactions PMS characteristics:            Personalized Service Interaction with Fund Manager Regular feedback and reports Pro-active management of funds Holdings not impacted by entry/exit of big investors Can remain liquid for long periods Disciplined investment process Quality investments Limiting risk Low portfolio turnover Focus on generating Absolute returns rather than Relative Returns Angel GoldProduct.Fund Manager Mr.

 Minimum funds or portfolio of Rs. 40 .4 Lakhs will be eligible for Angel Gold. (12-18 Months)  Browser based BO software for clients and branches  Monthly Newsletter will be released from Angel GOLD desk  Periodic meetings will be held in the branches POSITIONING  Angel GOLD is positioned as an equity investment option for all those investors who aim for realistic return from equity as an asset class on a long term perspective. Profits can be redeemed or re-investing based on client’s wish  Existing client account can be used for Angel GOLD. No profit sharing. Unique selling Preposition (USP)  A strong team of 11 sector specific analysts headed by Research director guiding the investments  No Entry/Exit load.1 Lakh. Lalit Thakkar along with 12 senior analysts will take investment decisions  Investment will be done for a longer time horizon. No Management fees  A corpus limit as low as Rs.75% for clients. Clients can do there own transactions in the same account as well.  Brokerage of 0.  A portfolio of growth stocks and not market capitalization bias. 50% sharing of brokerage in case of Sub-broker’s clients.  It is for the investors who.50%-0. No Entry/Exit load and No profit sharing  Shares can be kept in Angel pool or can be transferred to the respective DP accounts  Intimation regarding transaction will be given to clients by evening of the day of transaction  No Lock-in period. wishes to seek professional advice for their investments.  Research Director Mr..1 Lakh and maximum of Rs.  No AMC.

etc. gold. If utilized prudently. Flexibility of reinvesting. Product Segment  Angel GOLD is for the people who fall in middle class – higher middle class section of the society  People who are not risk averse and can understand the return  benefits vis-à-vis calculated risk taken  People who are new entrant to the equity markets. Target Customers  Young professionals earning salaries around Rs. normally coming through the Mutual Fund route.  Small scale businessmen who are not risk averse and will understand the importance of reasonable returns  Retired people who have taken hefty VRS or has savings of which 20-25% can be invested in equities Margin Funding and prepaid brokerage Margin Funding “Margin Funding” allow you to take higher exposure on the funds as well as unlock the value of your existing portfolio & take advantage of investment opportunities in the market without the involvement of fresh funds. FDs. PPF. this product can help unlock the value of Securities even during depressed Stock Market conditions and provide customers with the much-needed liquidity during pressing times. redeeming and liquidating the portfolio  A low cost solution for investing.6 Lacs with one or two years experience  Middle aged professionals considering traditional ways of investing i.3 Lacs to Rs. bonds.e. One can use the shares in his current portfolio to make fresh purchases in the market. 41 .

Some characteristics of pre-paid brokerage are as follows:       Zero account opening charges Attractive Brokerage Rate Free DP AMC for 1 year Assured gifts worth thousands with every account. Interest calculated on the amount utilized & the time for which it is utilized.Advantages:       Provide instant liquidity without having to sell your Securities. Benefits like bonuses and dividends continue to accrue to the borrower.Product and services that totally satisfy and 42 . email or visit. Allow you to grab investment opportunities instantly without any need to pay first. Established in 2005.the cell was set up as the compelling need was felt to shift from ‘customer satisfaction to customer delight” Angel’s definition of Quality. Leverage your funds available for investments. Different pre-paid recharge are available with different validity. Quality assurance cell is one such significant milestone achieved by the company. Pre-Paid Brokerage Pre-paid brokerage is one of the best schemes for customers to take the advantages of less brokerage. which stands for its performance. Any appreciation in the value of the Securities given as margin would automatically allow enhancement in drawing power. Easy & Fast Recharge Free Financial Investment Application with every account Quality Assurance by Angel Angel Broking is the First Brokerage House to have a Quality Assurance Cell across Industry Dedicated QA teams at CSO & branches to resolve client queries/ complaints through telephone.

growth  Process-Standardized tasks for continuous improvement  Philosophy-Long term thinking Research & Advisory The markets ended Monday marginally in the green. Simply put. Fundamental analysis is used to determine the amount of money a company can make and the kind of earnings an investor can expect. Markets surged on Wednesday on positive global cues and short covering in April 2009 derivatives contracts. serving and documentation. The markets remained closed both on Thursday and Friday. “Right First Time and Right Every Time”. after opening weak due to concerns about Swine flu.2% Fundamental Analysis Fundamental analysis is one of the most useful tools that investors use when making decisions about which stocks they’re going to buy. Quality is achieving a high degree of excellence in all forms of activities from design. challenge.7% and the Nifty closing marginally lower by 0. It is a process of examining key ratios that show the current worth of a stock and the recent performance of a company. The stock prices may increase and the dividends may pay out. And to achieve that. with the Sensex gaining 0.often exceed customer needs and expectations in all respect to delight him. development. 43 . they follow the 4 ‘P’ Quality model:  Problem solving-continuous improvement and learning  People and Partners-Respect. Future earnings may be subject to interpretation but good earning histories create confidence among investors. The Indices were weak at the outset of the Tuesday ending the day in red. The markets just ended the week positive.

Details about the value of a company which include competitive advantages and ownership ratios between the management and the outside investors can be revealed through further fundamental analyses. The holdings are usually shortterm since the investors drop the stocks once they reach their projected profit. 44 . This style of analysis is used by investors who are often concerned about the nature and the value of the companies where they trade their stocks in. Most of these tools rely on the financial statements released by the company.Stock market analysts determine whether a company is meeting its expected growth by examining the earnings that are reported by the company on a regular basis. There are a lot of tools that are used to determine the earnings and the value of a company on the stock market. Fundamental analysis is for the rational man  To make financial forecasts  To conduct a company stock valuation & predict its probable price evolution  To make a projection on its business performance  To evaluate its management and make internal business decisions  To calculate its credit risk Technical Analysis The art and science of examining stock chart data and predicting future stock market movements is called technical analysis. If the company doesn’t meet its expected growth. the prices of its stocks usually experience a downturn.

Most of these patterns rely on the basic concepts of “support” and “resistance. economic status. produces movements that can be analyzed and applied to the future movements of the stock market. The efficiency. In the event that the market doesn’t move as expected. when coupled with historical trends. technical analysis is not intended for long-term investments. These factors include company performance. and natural disasters. IOP Services 45 . the losses can be limited by stop-loss orders. Value Added Services        NRI Service Desk for personalized Assistance Dedicated Offline Equity Dealing Desk Online Equity Trading Platform NRI Investment Advisory Desk PAN card Assistance Support for Banking & PIS Account Portfolio Management. Because the fundamental information about the potential growth of a company is not taken into account. Once they hit the support or the resistance levels. Investors can take advantage of both upswings and downswings in price by going either long or short. Trades are entered and exited at precise times so technical analysts need to spend a lot of time watching the movements of the stock market.The belief that stock prices move in predictable patterns is the basis for technical analysis. Hundreds of stock patterns have been developed over time. Mutual Fund.” The level where downward prices are expected to rise from is called the support while the level where the upward prices are expected to reach before falling again is called the resistance. the prices tend to bounce. The factors that influence the movement of the price are supposedly reflected in the stock market with great efficiency.

Which are as follows in detail: Importance & Needs of Training Optimum Utilization of Human Resources – Training helps in optimizing the utilization of human resource that further helps the employee to achieve the organizational goals as well as their individual goals. Research and Advisory. One of the strongest need of training is to respond to challenges presented by new technology. Wealth management services. Different departments at Angel and the way they execute their tasks. Brain storming. Product and services. Back office.Training A training program can serve a range of diverse purposes. and organizations initiate training programs for many different reasons. 46 . Customer Relationship Management training at Angel Broking helped us to meet the challenges in current market scenario. We were covered by Motivational speeches by Board of directors. We came to know about maintaining long lasting customer relationship. Role plays. Value added services and healthy discussions . Scrip designing.

It helps in inculcating the zeal to learn within the employees. It helps to build good employee. It helps to expand the horizons of human intellect and an overall personality of the employees. and peers. Health and Safety – Training helps in improving the health and safety of the organization thus preventing obsolescence. Morale – Training helps in improving the morale of the work force. Organization Climate – Training helps building the positive perception and feeling about the organization. 47 . Healthy work-environment – Training helps in creating the healthy working environment.Development of Human Resources – Training helps to provide an opportunity and broad structure for the development of human resources’ technical and behavioral skills in an organization. Quality – Training helps in improving upon the quality of work and work-life. subordinates. Organization Culture – Training helps to develop and improve the organizational health culture and effectiveness. It also helps the employees in attaining personal growth. Image – Training helps in creating a better corporate image. team spirit. The employees get these feelings from leaders. It helps in creating the learning culture within the organization. Development of skills of employees – Training helps in increasing the job knowledge and skills of employees at each level. Productivity – Training helps in increasing the productivity of the employees that helps the organization further to achieve its long-term goal. and inter-team collaborations. Team spirit – Training helps in inculcating the sense of team work. relationship so that individual goals aligns with organizational goal.

E. Lectures/Conferences:.e. (absenteeism or resignation). employees are trained for both backend & front-end jobs. procedures or methods. This training can be imparted by basically four methods: Coaching is learning by doing. This type of training is cheaper & less time-consuming. In case of emergency. the superior guides his subordinates & gives him/her job instructions. loyalty. OFF THE JOB TRAINING is given outside the actual work place. The superior points out the mistakes & gives suggestions for improvement. ON-THE-JOB TRAINING is given at the work place by superior in relatively short period of time. It helps in understanding and carrying out organizational policies. Job Rotation: . Training aids in organizational development i.g. better attitudes. the trainees move from one job to another. rules. motivation.In this method. In banking industry. so that he/she should be able to perform different types of tasks. METHODS OF TRAINING The most widely used methods of training used by organizations are classified into two categories: On-the-Job Training & Off-the-Job Training. and other aspects that successful workers and managers usually display.Profitability – Training leads to improved profitability and more positive attitudes towards profit orientation. Organization gets more effective decision making and problem solving. any employee would be able to perform any type of job.This approach is well adapted to convey specific information. In this. Training helps in developing leadership skills. This method is 48 .

The trainees are divided into groups who represent the management of competing companies. Motion pictures are often used in conjunction with Conference. Simulation activities include case experiences.are usually short. but the training is conducted away from the actual work floor. While expensive. In this method of training. management games & role-play. the trainees are required to enact defined roles on the basis of oral or written description of a particular situation. Management Games: . Role Play: .Any training activity that explicitly places the trainee in an artificial environment that closely mirrors actual working conditions can be considered a Simulation. Cases: . Additionally. vestibule training. Video Clips can provide information & explicitly demonstrate skills that are not easily presented by other techniques. an experiential exercise could be used to create a conflict situation where employees have to experience a conflict personally & work out its solutions. They make decisions just like 49 . For instance. rather than talking about inter-personal conflicts & how to deal with them. experiential exercises. The employee attempts to find and analyze the problem. Vestibule Training: . Experiential Exercises: .present an in depth description of a particular problem an employee might encounter on the job. Simulation Exercise: .Employees learn their jobs on the equipment they will be using.Its just like acting out a given role as in a stage play. The cost per trainee is low in this method. evaluate alternative courses of action & decide what course of action would be most satisfactory. it minimizes the problem of transferring learning to the job.useful. where the information is to be shared among a large number of trainees. discussions to clarify & amplify those points that the film emphasized. Vestibule training allows employees to get a full feel for doing task without real world pressures. structured learning experiences where individuals learn by doing.The game is devised on a model of a business situation.

4. Feedback should be taken from the trainees after the training is over. There should be a two-way communication between the trainer & trainee. The decisions taken by the trainees are compared with one another. individual abilities & the present environment. Here are seven recommendations for getting the best out of this tool: 1. The game goes on in several rounds to take the time dimension into account. The trainees are provided feedback on their performance. The trainee is presented with a pack of papers & files in a tray containing. 50 . who possesses good amount of knowledge & understanding about the organization's objectives. Experienced & skilled trainer. 2.these are made in real-life situations. Focus of training should be on priority development needs and to produce strong motivation to bring change in employees. but it needs to be used with care in order to derive all the benefits. administrative problems & is asked to take decisions on these problems & are asked to take decisions on these within a stipulated time. so that the organization comes to know about the deficiencies in the training program & also suggestions to improve upon the same. Decisions made by the groups are evaluated & the likely implications of the decisions are fed back to the groups. should give training. Learn about the needs and proficiency of each and every employee before an organization invests its effort. time & money on training. 3. 5. Its better to identify the needs & shortcomings in an employee before actually imparting training to him/her. Active participation from the trainees should be encouraged. RECOMMENDATIONS & CONCLUSION No doubt Training is a very powerful tool for the smooth functioning of the organization.Also known as In-tray method of training. In-Basket Exercise: .

Training adopted by us at AngelWe adopted a procedural training to execute our given tasks. linear procedures.6. training is a vital tool to cope up with the changing needs & technologies. These steps may be required a certain level of knowledge or have mental or physical skills associated with them. & ever-changing environment. The trainee demonstrates the procedure again so that the instructor can check for full mastery. 51 . The cost incurred on the training program should not exceed its benefits. The method or type of training should be very cautiously selected by the organization depending upon the organizations' resources & an employee's individual need for training. the following method of explanation and demonstration is recommended: a. d. For short. A procedure is a sequence of steps that must be followed to accomplish a task. It benefits both the organization as well as the employees. 7. The trainee demonstrates the procedure and explains what he/she is doing at each step. c. progress from one step to the next until the task is completed. simple. The instructor repeats the demonstration but has the trainee explain what actions are occurring. that is. b. or a procedure may have one or more decision points where the student will have to decide which branch of the procedure to follow next. Thus. A procedure may be linear. The instructor demonstrates the entire procedure and explains each step as it is done.

The instructor continues this "progressive parts" approach until the entire procedures is explained. The information needed to make the decisions also needs to be covered at the appropriate point in the lesson. It is sometimes appropriate to combine several simpler steps during the training or address a more complex step individually before combining it with the entire training. hence less risk for manipulation. For more complex decision points.  The Commodity market are global in nature . The decision points within a procedure are good break points for the segments. Training Under Different DepartmentWe have been trained under following departments1-Commodities Commodity markets are markets where raw or primary products are exchanged. or the steps between decision points. After that the procedure should be broken up into segments for further instruction. Depending upon whether the segments are simple or complex.  Commodities are easy to Understand and have positive correlation with Inflation. the methods outlined above can be used for each segment. it is recommended that all segments be explained and demonstrated before discussing the decision points. An instructor can talk about the sequence of steps prior a decision point. It is easier for a person to make a more complex decision when they understand the steps that make up the alternative branches of the procedure. an overview of the entire procedure is a good starting point. 52 . These raw commodities are traded on regulated commodities exchanges. For procedures that have decision points. in which they are bought and sold in standardized contracts.

Gold Crude palm Oil Brent crude Pepper Silver Mustard Seed Sweet Crude Guar seed Steel Castor oil Furnace oil Soy Bean Copper Jeera Zinc Chili Nickel Turmeric Lead & Aluminum etc. Low Margins – 5% . Historically Commodities have outperformed the Stock Market . The trend in one commodity not necessarily have correlation with the trend of other. Diversification through a different asset class. Every commodity have separate market in Itself and hence     many such market is simulated at one single screen.Comm. Softs Cotton Sugar Guar 53 .10% only Commodities Segment wise (MCX & NCDEX) Metals Oils Energy Agri.

it happened that we did not have sufficient phone available.  Many of the time when we went to meet the clients with whom appointments was fixed. Most of the students are out of the state and not having vehicle. most of them had been shown with wrong information. we had to face few problems also and they are Client Data Sheet was not updated.  A big problem was transportation. We faced this problem only 2 to 3 times. after reaching the client’s place they said we are not available and not even interested.  Training room was pre-occupied by full time joined fresher employee.  Variable strategy to execute the tasks 54 .  Most of the clients were not giving appointments and some of them did not even talk on phone.  At angel while calling to the customers. We faced lot many problems to meet the clients at different corners of Ahmedabad.Problems faced at the time of training Though we successfully executed our tasks in our training.

so that we can save the time. 55 .  We should utilize every second.  Data should be up to date.  Team work should be there.  Participation should be there. Wastage of time because of a poor time management by Angel Suggestions to Improve  There should be a fixed strategy for SIP training.  The MIS Procedure of company was not proper.

Bills of Exchange and other such instruments of short-term maturities (i. The Instruments traded in the money-market are Treasury Bills. Commercial Paper (CPs). This market encompasses the trading and issuance of short term non equity debt instruments including treasury bills. commercial papers. etc. for example the market for 90days treasury bills. bankers acceptance.e. certificates of deposits. not exceeding 1 year with regard to the original maturity) 56 . MONEY MARKET Money market is a market for debt securities that pay off in the short term usually less than one year. In other word we can also say that the Money Market is basically concerned with the issue and trading of securities with short term maturities or quasi-money instruments. Certificates of Deposits (CDs). Introduction There are two types of market in India.Industry Analysis Industry Analysis at Indian level 1.

Secondary market could be either auction or dealer market. Secondary market is an 57 . Secondary market comprises of equity markets and the debt markets. While stock exchange is the part of an auction market. For the general investor. Over-the-Counter (OTC) is a part of the dealer market.CAPITAL MARKET Capital market is a market for long-term debt and equity shares. and aggregating information (via price discovery) that guides management decisions. Capital market can be divided into Primary and Secondary Markets. Primary Market In the primary market.issued securities are traded amongst investors. the capital funds comprising of both equity and debt are issued and traded. securities are offered to public for subscription for the purpose of raising capital or fund. Majority of the trading is done in the secondary market. the secondary market provides an efficient platform for trading of his securities. Secondary equity markets serve as a monitoring and control conduit—by facilitating value-enhancing control activities. This also includes private placement sources of debt and equity as well as organized markets like stock exchanges. enabling implementation of incentive-based management contracts. Secondary Market Secondary Market refers to a market where securities are traded after being initially offered to the public in the primary market and/or listed on the Stock Exchange. In this market. Difference between the primary market and the secondary market In the primary market. Secondary market is an equity trading avenue in which already existing/pre. For the management of the company. securities are offered to public for subscription for the purpose of raising capital or fund.

A company may issue such shares with differential rights as to voting.  Cumulative Preference Shares: A type of preference shares on which dividend accumulates if remains unpaid. payment of dividend.  Rights Issue/ Rights Shares: The issue of new securities to existing shareholders at a ratio to those already held. Over-the-Counter (OTC) is a part of the dealer market.  Preferred Stock/ Preference shares: Owners of these kind of shares are entitled to a fixed dividend or dividend calculated at a fixed rate to be paid regularly before dividend can be paid in respect of equity share. as a fractional owner. 58 . undertakes the maximum entrepreneurial risk associated with a business venture. But in the event of liquidation. Secondary market could be either auction or dealer market.issued securities are traded amongst investors. etc. All arrears of preference dividend have to be paid out before paying dividend on equity shares.equity trading avenue in which already existing/pre. commonly referred to as ordinary share also represents the form of fractional ownership in which a shareholder. their claims rank below the claims of the company’s creditors. The holders of such shares are members of the company and have voting rights.  Bonus Shares: Shares issued by the companies to their shareholders free of cost by capitalization of accumulated reserves from the profits earned in the earlier years. While stock exchange is the part of an auction market. bondholders / debenture holders. They also enjoy priority over the equity shareholders in payment of surplus. The various kinds of equity shares are as follows –  Equity Shares:  An equity share. Main financial products/instruments dealt in the secondary market  Equity: The ownership interest in a company of holders of its common and preferred stock.

issued by a securitisation company or reconstruction company to any qualified institutional buyer pursuant to a scheme. title or interest in the financial asset involved in securitisation.  Government securities (G-Secs): These are sovereign (credit risk-free) coupon bearing instruments which are issued by the Reserve Bank of India on behalf of Government of India.  Bond: A negotiable certificate evidencing indebtedness.  Security Receipts: Security receipt means a receipt or other security. evidencing the purchase or acquisition by the holder thereof. After a specified date. A debt security is generally issued by a company. These securities are available in wide range of maturity dates. of an undivided right. These securities have a fixed coupon that is paid on specific dates on half-yearly basis. in lieu of the Central Government's market borrowing programme. Cumulative Convertible Preference Shares: A type of preference shares where the dividend payable on the same accumulates. from short dated (less than one year) to long dated (upto twenty years). It is normally unsecured.  Participating Preference Share: The right of certain preference shareholders to participate in profits after a specified fixed dividend contracted for is paid. The issuer usually pays the bond holder periodic interest payments 59 . municipality or government agency. if not paid. A bond investor lends money to the issuer and in exchange. Debentures are normally secured/ charged against the asset of the company in favour of debenture holder. the issuer promises to repay the loan amount on a specified maturity date. Participation right is linked with the quantum of dividend paid on the equity shares over and above a particular specified level.  Debentures: Bonds issued by a company bearing a fixed rate of interest usually payable half yearly on specific dates and principal amount repayable on particular date on redemption of the debentures. these shares will be converted into equity capital of the company.

The difference between the issue price and redemption price represents the return to the holder. SEBI Security Exchange Board of India SEBI & Its Role In Secondary Market The SEBI is the regulatory authority established under Section 3 of SEBI Act 1992 to protect the interests of the investors in securities and to promote the development of. 1988. doesn’t require any guarantee. the securities market and for matters connected therewith and incidental thereto. Treasury Bills: Short-term (up to 91 days) bearer discount security issued by the Government as a means of financing its cash requirements. 60 .  Convertible Bond: A bond giving the investor the option to convert the bond into equity at a fixed conversion price. No periodic interest is paid. 2. at the maturity of the bond.  Commercial Paper: A short term promise to repay a fixed amount that is placed on the market either directly or through a specialized intermediary. Securities and Exchange Board of India constituted under the Resolution of the Government of India in the Department of Economic Affairs No. The various types of Bonds are as follows Zero Coupon Bond: Bond issued at a discount and repaid at a face value. and to regulate. Commercial paper is a money market instrument issued normally for a tenure of 90 days.1 (44)SE/86. The buyer of these bonds receives only one payment. dated the 12th day of April.over the life of the loan. It is usually issued by companies with a high credit standing in the form of a promissory note redeemable at par to the holder on maturity and therefore.

The Board shall consist of the following members.) 2 of 1934 3. A Chairman 2. pursuant to the BSE (Corporatization and Demutualization) Scheme. One member from amongst the officials of [the Reserve Bank 4. Earlier an Association of Persons (AOP). With demutualization. The 61 . The Exchange's pivotal and pre-eminent role in the development of the Indian capital market is widely recognized and its index. it was established as "The Native Share & Stock Brokers Association" in 1875. The Board comprises eminent professionals. Popularly known as "BSE". 1956. 2005 notified by the Securities and Exchange Board of India (SEBI). 1956. The Exchange is professionally managed under the overall direction of the Board of Directors. SENSEX. is tracked worldwide. 1956. namely:1. representatives of Trading Members and the Managing Director of the Exchange. Two members from amongst the officials of the Ministry of the Central Government dealing with Finance (and administration of the Companies Act. Five other members of whom at least three shall be the whole-time members BOMBAY STOCK EXCHANGE OF INDIA LIMITED Bombay Stock Exchange Limited is the oldest stock exchange in Asia with a rich heritage. the Exchange is now a demutualised and corporative entity incorporated under the provisions of the Companies Act. the trading rights and ownership rights have been de-linked effectively addressing concerns regarding perceived and real conflicts of interest. It is the first stock exchange in the country to obtain permanent recognition in 1956 from the Government of India under the Securities Contracts (Regulation) Act.

The Exchange provides an efficient and transparent market for trading in equity. The day-to-day operations of the Exchange are managed by the Managing Director and a management team of professionals.Board is inclusive and is designed to benefit from the participation of market intermediaries. Bombay Stock Exchange Limited (BSE) which was founded in 1875 with six brokers has now grown into a giant institution with over 874 registered Broker-Members spread over 380 cities across the country. Corporate Information. Member Services and Development Department is the single point interface for interacting with the Exchange Administration to address to Members' issues. Clearing and Settlement. the trading volumes on the Exchange showed robust growth. Surveillance and Inspection. The surveillance and clearing & settlement functions of the Exchange are ISO 9001:2000 certified. and Processes such as Trading. The Exchange has a nation-wide reach with a presence in 417 cities and towns of India. Derivatives. The systems and processes of the Exchange are designed to safeguard market integrity and enhance transparency in operations. etc. During the year 2004-2005. the Board formulates larger policy issues and exercises over-all control. The committees constituted by the Board are broad-based. With a view to provide efficient and integrated services to the investing public through the members and their associates in the operations pertaining to the Exchange. Training. Today. Bombay Stock Exchange Limited (BSE) has set up a unique Member Services and Development to attend to the problems of the Broker-Members. The BSE's On Line Trading System (BOLT) is a proprietary system of the Exchange and is BS 7799-2-2002 certified. Internet Trading. 62 . Technology. The Department takes care of various problems and constraints faced by the Members in various products such as Cash. debt instruments and derivatives. BSE's Wide Area Network (WAN) connecting over 8000 BSE Online Trading (BOLT) System Trader Work Stations (TWS) is one of the largest of its kind in the country. In terms of organization structure. Membership.

set quality and quantity standards. These central marketplaces provided a place for buyers and sellers to meet. Inc. the Rubber 63 . a group of Manhattan dairy merchants got together to bring chaotic condition in New York market to a system in terms of storage. In 1872.COMMODITY EXCHANGES There are three categories:  NCDEX  MCX . pricing. businessmen began organizing market forums to make the buying and selling of commodities easier.  NMCE A brief description of commodity exchanges are those which trade in particular commodities. In the middle of 19th century in the United States. and establish rules of business. and transfer of agricultural products. stock index futures and options etc.. Agricultural commodities were mostly traded but as long as there are buyers and sellers. during the Great Depression. was established in New York through the merger of four small exchanges – the National Metal Exchange. any commodity can be traded. the Commodity Exchange. neglecting the trade of securities. In 1933.

Government of India has allowed forward transactions in commodities through Online Commodity Exchanges. a modification of traditional business known as Adhat and Vayda Vyapar to facilitate better risk coverage and delivery of commodities.Exchange of New York. It is a professionally managed online multi commodity exchange. 2003.This is the only commodity exchange in the country promoted by national level institutions. After a gap of almost three decades. The major commodity markets are in the United Kingdom and in the USA. The three exchanges are: 1. National Commodity & Derivatives Exchange Limited (NCDEX) National Commodity & Derivatives Exchange Limited (NCDEX) located in Mumbai is a public limited company incorporated on April 23. Stamp 64 . National Bank for Agriculture and Rural Development (NABARD) and National Stock Exchange of India Limited (NSE). National Multi-Commodity Exchange of India Limited (NMCEIL) All the exchanges have been set up under overall control of Forward Market Commission (FMC) of Government of India. of which there are three national level multi-commodity exchanges. NCDEX is regulated by Forward Market Commission and is subjected to various laws of the land like the Companies Act. the National Raw Silk Exchange. 1. 1956 and had commenced its operations on December 15. It is promoted by ICICI Bank Limited. In India there are 25 recognized future exchanges. 2003 under the Companies Act. Multi Commodity Exchange of India Limited (MCX) 3. and the New York Hide Exchange. National Commodity & Derivatives Exchange Limited (NCDEX) 2. Life Insurance Corporation of India (LIC).

MCX facilitates online trading. MCX started offering trade in November 2003 and has built strategic alliances with Bombay Bullion Association. 2002. end-users.Act. It has operationalised from November 26. Earlier only the buyer of produce and its seller in the market judged upon the prices. Bank of India and Canara Bank.. It got its recognition in October 2000. it was granted approval by the Government to organize trading in the edible oil complex. State Bank of India. 4. Forward Commission (Regulation) Act and various other legislations. 65 . It is being supported by Central Warehousing Corporation Ltd. Gujarat State Agricultural Marketing Board and Neptune Overseas Limited. Contracts Act. commodity exchanges are purely speculative in nature. in an organized way. Commodity exchange in India plays an important role where the prices of any commodity are not fixed. Others never had a say. Corporation Bank. 2. Multi Commodity Exchange of India Limited(MCX) Headquartered in Mumbai Multi Commodity Exchange of India Limited (MCX). Electronic Multi-Commodity Exchange in India. Before discovering the price. clearing and settlement operations for commodity futures markets across the country. On 25th July. Union Bank of India. Bombay Metal Exchange. 2001. is an independent and de-mutulised exchange with a permanent recognition from Government of India. Solvent Extractors’ Association of India. Pulses Importers Association and Shetkari Sanghatana. Key shareholders of MCX are Financial Technologies (India) Ltd. Today. they reach to the producers.. National Multi-Commodity Exchange of India Limited (NMCEIL) National Multi Commodity Exchange of India Limited (NMCEIL) is the first de-mutualzed.

That keeps the market as efficient as possible. where a single auctioneer announces the bids. no one can bid under a higher bid. management and trading rights are in the hands of three different sets of people. By Exchange rules and by law. and keeps the traders on their toes to make sure no one gets the purchase or sale before they do. During last one decade it has been playing the role of a catalytic agent in reforming the markets in terms of market microstructure and in evolving the best market practices keeping in mind the investors. at a grassroots level. This has completely eliminated any conflict of interest. The Exchange is set up on a de-mutual zed model wherein the ownership. and no one can offer to sell higher than someone else’s lower offer.and even the retail investors. 66 . This has helped NSE to aggressively pursue policies and practices within a public interest framework. It brings a price transparency and risk management in the vital market.A New ideology The broad objective for which the exchange was set up has made it to play a leading role in enlarging the scope of market reforms in securities market in India. NSE . A big difference between a typical auction. and the Exchange is that people are not only competing to buy but also to sell.

automated trading system has helped in shifting the trading platform from the trading hall in the premises of the exchange to the computer terminals at the premises of the trading members located at different geographical locations in the country and subsequently to the personal computers in the homes of investors and even to hand held portable devices for the mobile investors. implementing on-line. clearing and settlement mechanism. establishment of the clearing corporation (NSCCL). that would help investors who have incurred financial loss due to default of brokers. the Exchange involves trading members in the process of 67 .NSE's nationwide. though the role of trading members at NSE is to the extent of providing only trading services to the investors. it has also created an investors protection fund (IPF).. real-time risk management systems. As a consequence. the market today uses state-of-the-art information technology to provide an efficient and transparent trading. It has also proved to be instrumental in ushering in scrip less trading and providing settlement guarantee for all trades executed on the Exchange. Ownership and Management the NSE The day-to-day management of the Exchange is delegated to the Managing Director and CEO who is supported by a team of professional staff. reduction of settlement cycle. In order to take care of investors interest. Settlement risks have also been eliminated with NSE's innovative endeavors in the area of clearing and settlement viz. Therefore. It has been encouraging corporation of membership in securities market. setting up a settlement guarantee fund (SGF). dematerialization and electronic transfer of securities to name few of them.

consultation and participation in vital inputs towards decision making. 68 .

69 .

and to operate a tight risk containment system. It was the first clearing corporation in the country to provide notation/settlement guarantee that revolutionized the entire concept of settlement system in India.Market Segments and Products NSE provides an electronic trading platform for of all types of securities for investors under one roof . 4. (NSCCL). to promote and maintain short and consistent settlement cycles. Stock Options. Index Options. Futures on Interest Rates etc. was incorporated in August 1995 and commenced clearing operations in April 1996. Derivatives like Index Futures. Exchange Traded Funds.Equity. Commercial Paper.. It was set up to bring and 9 sustain confidence in clearing and settlement of securities. Corporate Debt. NSE FAMILY NSCCL National Securities Clearing Corporation Ltd. Central and State Government Securities. to provide counter-party risk guarantee.  Wholesale debt market (WDM)  Capital market (CM) segment and  The futures & options (F&O) segment. Stock Futures. It carries out the clearing and settlement of the trades executed in the equities and derivatives segments of the NSE. 70 . which makes it one of the few exchanges in the world providing trading facility for all types of securities on a single exchange. T-Bills. Mutual Funds units. a wholly-owned subsidiary of NSE. The Exchange provides trading in 3 different segments viz. Certificate of Deposits (CDs). Warrants.

clearing and risk 71 . the world's leading provider of invest able equity indices. It provides a broad range of products and professional index services. through the seller's broker and buyer's broker.IT Limited. was incorporated in October 1999 to provide thrust to NSE’s technology edge. It maintains over 70 equity indices comprising broadbased benchmark indices. a joint venture of NSE and Credit Rating Information Services of India Limited (CRISIL). It provides the securities industry with technology that ensures transparency and efficiency in the trading. These include index based derivatives on NSE. NSDL Prior to trading in a dematerialized environment. a 100% technology subsidiary of NSE. NSE. was set up in May 1998 to provide indices and index services.IT NSE. a number of index funds and India's first exchange traded fund. settlement of trades required moving the securities physically from the seller to the ultimate buyer. for co-branding equity indices. Many investment and risk management products based on IISL indices have been developed in the recent past. concomitant with its overall goal of harnessing latest technology for optimum business use. which involved lot of time and the risk of delay somewhere along the chain. IISL pools the index development efforts of NSE and CRISIL into a coordinated whole. It has a consulting and licensing agreement with Standard and Poor's (S&P).IISL India Index Services and Products Limited (IISL). sectoral indices and customized indices. It is India's first specialized company which focuses upon the index as a core product.

ICICI Bank. CRISIL. bonds and other securities issued by issuers require listing for providing liquidity to investors. Listing means formal admission of a security to the trading platform of the Exchange. PNB. The issuer wishing to have trading privileges for its securities satisfies listing requirements prescribed in the relevant statutes and in the listing regulations of the Exchange. All the issuers who list their securities have to satisfy the corporate governance requirement framed by regulators. internet and business continuity plans. Additionally. NCDEX NSE joined hand with other financial institutions in India viz. 1 base metal and 2 precious metal. NABARD. LIC. Canara Bank and IFFCO to promote the NCDEX which provide a platform for market participants to trade in wide spectrum of commodity derivatives. It also agrees to pay the listing fees and comply with listing requirements on a continuous basis. It provides liquidity to investors without compromising the need of the issuer for capital and ensures effective monitoring of conduct of the issuer and trading of the securities in the interest of investors. 5.management systems. NSE. LISTING OF SECURITIES The stocks.IT provides consultancy services in the areas of data warehousing.. 72 . Currently NCDEX facilitates trading of 37 agro based commodities.

73 .

There are no entry/exit barriers to trading membership. up-to-date and correct information to investors to enable them to take informed decisions. Byelaws. etc. received from the companies is disseminated to all the market participants through the network of NSE terminals all over India. In furtherance of their interests. Any entity can become a trading member by complying with the prescribed eligibility criteria and exit by surrendering trading membership. The trading members are subject to its regulatory discipline.6. 7. new line of business. It ensures that critical and pricesensitive information reaching the exchange is made available to all classes of investor at the same point of time. 74 . INVESTOR GRIEVANCES Investors are the backbone of the securities market. Protection of their interests is paramount for NSE. MEMBERSHIP ADMINISTRATION The trading in NSE has a three tier structure-the trading platform provided by the Exchange. Such price-sensitive information as bonus announcements. Action is initiated by the Exchange whenever any kind of price sensitive information is not provided to the Exchange at the prescribed time by companies listed on the Exchange. The trading members have been provided exclusive rights to trade subject to their continuously fulfilling the obligation under the Rules. etc. of the Exchange. NSE has put in place systems to ensure availability of adequate. the broking and intermediary services and the investing community. Regulations. Circulars. mergers.

The complete process of dematerialisation is outlined below:  Surrender certificates for dematerialisation to your depository participant.8. 75 .  After dematerialising the certificates. Registrar confirms the dematerialisation request from depository.  Depository participant updates the demat account of the investor. Separate DRF has to be filled for each ISIN Number.  Depository participant intimates Depository of the request through the system. DEMATERIALISATION & REMATERIALISATION DEMATERIALISATION Meaning Dematerialisation is the process by which physical certificates of an investor are converted to an equivalent number of securities in electronic form and credited into the investor's account with his/her DP.  Depository participant submits the certificates to the registrar of the Issuer Company.  Depository updates its accounts and informs the depository participant. Dematerialising securities (physical holding into electronic holding) In order to dematerialise physical securities one has to fill in a DRF (Demat Request Form) which is available with the DP and submit the same along with physical certificates one wishes to dematerialise. Registrar updates accounts and informs depository of the completion of dematerialisation.

PAY-IN DAY AND PAY.  Depository updates accounts and downloads details to depository participant. Broker & Sub-Broker Broker A broker is a member of a recognized stock exchange.OUT DAY Pay in day is the day when the brokers shall make payment or delivery of securities to the exchange.  Depository participant intimates depository of the request through the system. Sub Broker A sub broker is a person who is registered with SEBI as such and is affiliated to a member of a recognized stock exchange. who is permitted to do trades on the screen-based trading system of different stock exchanges. He is enrolled as a member with the concerned exchange and is registered with SEBI. The process of re-materialisation is outlined below:  One makes a request for dematerialisation. 76 . If one wishes to get back his securities in the physical form one has to fill in the RRF (Re-mat Request Form) and request his DP for re-materialisation of the balances in his securities account. Registrar dispatches certificates to investor.  Depository confirms dematerialisation request to the registrar.  Registrar updates accounts and prints certificates.REMATERIALISATION The process of re-materialisation is used to convert the electronic holding into physical holdings. 10. Pay out day is the day when the exchange makes payment or delivery of securities to the broker. 9.

2003. The Exchanges will have to issue press release immediately after pay out. which is then liable to be recovered from the client.Settlement cycle is on T+2 rolling settlement basis w.e. The exchanges have to ensure that the pay out of funds and securities to the clients is done by the broker within 24 hours of the payout. The shortages are met through auction process and the difference in price indicated in contract note and price received through auction is paid by member to the Exchange. Auction What is an Auction? The Exchange purchases the requisite quantity in the Auction Market and gives them to the buying trading member. 11.f. April 01. 77 .

Major Players of the Industry S. India’s leading stock broker is the retail arm of SSKI. Kantilal Ishwarlal Securities Pvt.com provides the 3-in-1 to the users which ties in their saving bank account and their Demat account to their brokerage account electronically. S. A research and analysis team is constantly working to track performance and trends. which are having one of the highest success rates in the industry. margin or spot segments. Sharekhan is planning to enter in Mutual funds.com has the option of trading in shares in cash. (ICICIdirect.com was the first entrant into e-broking. and offers you depository services and trade execution facilities for equities. ICICIdirect. derivatives and commodities backed with investment advice tempered by decades of broking experience. Sharekhan is having 240 share shops in 110 cities. ICICdirect. That’s why Sharekhan has the trading products. Alliance Capital MF. the largest chain of retail share shops in India is of Sharekhan.com): Sharekhan. ICICI Web Trade Ltd. (sharekhan. JM MF. Franklin Templeton India MF. Insurance sector and banking sector to expand beyond the market currently covered by it. IL&FS MF.com) ICICIdirect. In future. This integration ensures that money is transferred to/from their bank account and the shares are transferred from/to their Demat account automatically without writing any cheques or transfer instructions while carrying out their trades in shares. 78 . An investor can also invest in 14 Mutual Funds (Prudential ICICI MF. Ltd. Birla Sun Life MF. And it has started MF (Mutual Funds) on priority basis but wants to grow in it. Sundaram MF.

India’s leading and most popular finance and investment portal. commodities broking and mutual funds. Kotak Securities Ltd is also a depository participant with 79 .Principal MF. For those who prefer to trade the traditional way. one of the leading technology companies in the world promoted by the UK government. Investors can benefit from its analysis and advice available at the click of the mouse. 5Paisa. has been the largest in IPO distribution . India Infoline investor points are available across the country.It was ranked number One in 2003-04 as Book Running Lead Managers in public equity offerings by PRIME Database. TDA and Reeshanar. Kotak Securities Limited (kotakstreet.com) Kotak Securities Ltd..com: 5paisa is the trade name of India Infoline Securities Private Limited (5paisa). Reliance Capital MF. The company’s brokerage is one of the lowest in the industry.one of the world’s leading investment banks and brokerage firms) is India’s leading stock broking house with a market share of 5 . Its institutional investors include Intel Capital. 5paisa is a wholly owned subsidiary of India Infoline Ltd. Kotak Mahindra MF.April 2004.6 %. It has also won the Best Equity House Award from Finance Asia . member of National Stock Exchange and The Stock Exchange. Mumbai. Kotak Securities Ltd. ICICI. HDFC MF. TATA MF and DSP MERRILL LYNCH MF) through their trading account. It also provides the research on commodities. a strategic joint venture between Kotak Mahindra Bank and Goldman Sachs (holding 25% . 5paisa has emerged as one of leading players in ebroking space in India. The company offers a slew of products such as stock and derivatives broking. Standard Chartered MF. India Infoline was founded by a group of professionals in 1995.

Indiabulls is lead by a highly regarded management team that has invested crores of rupees into a world class Infrastructure that provides real-time service & 24/7 access to all information and products. detailed data and news. Indiabulls offers a full range of financial services and products ranging from Equities. This powerful technology is complemented by our knowledgeable and customer focused Relationship Managers. 00. intelligent analytics. right at your finger-tips. The Indiabulls Professional Network offers real-time prices. our over 750 Client Relationship Managers are dedicated to serving your unique needs. Derivatives. 80 . The company has 42 branches servicing around 1. India Bulls Indiabulls is India's leading retail financial services company with 77 locations spread across 64 cities. Its size and strong balance sheet allows providing varied products and services at very attractive prices.000 customers. Kotak Securities Limited manages assets over 1700 crores under Portfolio Management Services (PMS) which is mainly to the high end of the market.com the online division of Kotak Securities Limited offers Internet Broking services and also online IPO and Mutual Fund Investments. Demat services and Insurance to enhance wealth and to achieve the financial goals. Kotakstreet. and electronic trading capabilities. Kotak Securities Limited has newly launched “Kotak Infinity” as a distinct discretionary Portfolio Management Service which looks into the middle end of the market.National Securities Depository Limited (NSDL) and Central Depository Services Limited (CDSL) providing dual benefit services wherein the investors can use the brokerage services of the company for executing the transactions and the depository services for settling them.

Its Value PMS Scheme gave a 160% post-tax return for the year ended March 2004. E-Broking Services. respect for professionalism. UK.000 investors through 270 outlets spanning 150 cities and 22 states. MOSt provides Advice-Based Broking. Focus on customer-first-attitude. ethical and transparent business practices. Commodities Trading. and IPO and Mutual Fund Investment Advisory Services. HDFC Securities Ltd (HDFCsec) HDFCsec is a brand brought to you by HDFC Securities Ltd.while in 2000 and 2002 it has been rated as the Best Domestic Equity Research House and Second best amongst Indian Brokerage firms respectively. which has been promoted by the HDFC Bank & HDFC with the objective of providing the diverse customer base of the HDFC Group and other investors a capability to transact in the Stock Exchanges & other financial market transactions. research-based value investing and implementation of cutting-edge technology have enabled it to blossom into a thousand-member team.Motilal Oswal Securities Ltd. The retail business unit provides equity investment solutions to more than 50. Depository Services. Hong Kong and Singapore.Mega Funds . with a dominant position in both institutional and retail broking. The institutional business unit has relationships with several leading foreign institutional investors (FIIs) in the US. In Asia Money Brokers Poll 2003 MOSt has been rated as the Best Domestic Research House. MOSt was founded in 1987 as a small sub-broking unit. they will also start offering the following online trading services on the BSE and NSE: 81 . In a few months. The services comprise online buying and selling of equity shares on the National Stock Exchange (NSE). with just two people running the show. Portfolio Management Services (PMS). In a recent media report MOSt was rated as one of the top-10 brokers in terms of business transacted for FIIs. (MOSt): One of the top-3 stock-broking houses in India. MOSt is amongst the bestcapitalized firms in the broking industry in terms of net worth. Buying and selling of select corporate debt and government securities on the NSE would be introduced in a subsequent phase.

NSE Trade in multicommodity exchange Trade in national commodity exchange Access to research and technical analysis V-SAT. Different types of company involved in online trading:          HDFC SECURITIES LIMITED ICICI WEB TRADE LIMITED KOTAK STREET LIMITED FIVE PAISA SECURITIES LIMITED INDIABULLS SECURITIES LIMITED MONEYPORE SECURITIES LIMITED SHARE KHAN SECURITIES LIMITED GEOJIT SECURITIES OTHERS. 5PAISA. internet connectivity Online back office. Arbitrage between NSE & BSE 3. purchase of Insurance policies and asset financing. Buying and selling of shares on the BSE 2.COM        Trade in BSE. Trading in Derivatives on the NSE 4. IPO subscriptions. Right issues. Margin trading products. software & support Liberal deposit.COM 82 .1. margin & exposure terms KOTAK STREET. They are also planning to include buying and selling of Mutual Funds.

COM  Classic account  Trading on NSE  Speed trade  Speed trade plus  Single screen trading terminal  Real-time streaming quotes  Live tic-by-tic intra-day charting  Instant order/trade confirmations in the same window  Hot keys similar to a broker’s terminal  Back-up facility to place trades on direct phone lines INDIABULLS.COM  Trade in equity  Trading through terminal  Trade in derivatives 83 .       Easy equities Easy mutual fund Derivatives Research on sms Margin finance Call & trade Easy IPO over phones SHAREKHAN.

software & support  Live quotes update system M arket share of online trading portals at present Indiabulls 10% 3% 5% 10% 20% 5paisa. Back-up facility to place trades on direct phone lines  Speed trade plus  Offline support through messenger  Access research and technical research  Own transaction engine  High transaction speed HDFC SECURITIES.com Kotakstreet.COM  Trading on NSE  Mutual fund  Online back office.com others 29% 84 .com 10% 10% 3% ICICID irect.com IL&FS Sharekhan.com Hdfcsec.com Moneypore.

A SWOT analysis must first start with defining a desired end state or objective. and Threats involved in a project or in a business venture. Weaknesses. has been the subject of much research. A SWOT analysis may be incorporated into the strategic planning model. Opportunities. 85 . An example of a strategic planning technique that incorporates an objective-driven SWOT analysis is Strategic Creative Analysis (SCAN). including SWOT and SCAN analysis. Strategic Planning.SWOT Analysis Introduction SWOT Analysis is a strategic planning method used to evaluate the Strengths. It involves specifying the objective of the business venture or project and identifying the internal and external factors that are favorable and unfavorable to achieving that objective.

It is particularly helpful in identifying areas for development. and individuals. Identification of SWOT is essential because subsequent steps in the process of planning for achievement of the selected objective may be derived from the SWOT. If the objective is NOT attainable a different objective must be selected and the process repeated. weaknesses. governmental units. opportunities and threats.  Opportunities: external conditions that are helpful to achieving the objective. given the SWOT. Examples include: non-profit organizations. SWOT analysis may be used in any decision-making situation when a desired end-state (objective) has been defined. Strengths: attributes of the person or company that are helpful to achieving the objective.  Threats: external conditions which could do damage to the business's performance. the decision makers have to determine whether the objective is attainable.  Weaknesses: attributes of the person or company that are harmful to achieving the objective. 86 . Use of SWOT Analysis The usefulness of SWOT analysis is not limited to profitseeking organizations. The SWOT analysis is often used in academia to highlight and identify strengths. SWOT analysis may also be used in pre-crisis planning and preventive crisis management. First. SWOT analysis may also be used in creating a recommendation during a viability study.

87 . Leif Edvinsson and Tord Beding (2000). we had come to know the Strengths Weaknesses – Opportunities – Threats for the company and it is very useful for a company to analyze them. Changes in relative performance are continuously identified. During this training at ANGEL BROKING LTD.SWOT-landscape analysis The SWOT-landscape grabs different managerial situations by visualizing and foreseeing the dynamic performance of comparable objects according to findings by Brendan Kitts. Projects (or other units of measurements) that could be potential risk or opportunity objects are highlighted. SWOT-landscape also indicates which underlying strength/weakness factors that have had or likely will have highest influence in the context of value in use SWOT Analysis of angel broking ltd.

 Dedicated. Intelligent and Loyal staff. resolving the problems of the customers. Competitors. 88 . etc.  A positive image in the existing clients. Strengths:  Well-maintained infrastructure.  One of the best DPs in India.  On-line Trading products.Therefore.t.  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.  Large retail customer base  Best online software Odin which within 5 second  management information system is quite good as compare to competitors Weaknesses:  Less awareness in the market. the SWOT analysis is presented here and the suggestions for maintaining strengths and removing weaknesses are explained.r.  Lowest brokerage and other charges w.  Time consuming process for account opening.

 Attract the customers who are dissatisfied with other brokers & DPs.O. Service quality is not maintained accordingly how they are promoted.D.  there are only 2 % to 3% peoples are investing in share market so huge opportunities are there  Large potential market for delivery and intra-day transactions. 89 . that runs the books of share holdings for many companies  Slope of stock market towards delivery based transactions.  Concentrate more on HNI (High Net-worth Individual) client  employee attrition rate is high especially B. & Dealers  all branches are not working in a synchronized way Opportunities:  Large primary market to sit as a book runner for the other companies just like Kotak securities ltd.  Open interest of the people to enter in stock market for investing.

2007  December. Threats:  Decreasing rates of brokerage in the market. 2007 ‘Major Volume Driver’ for 2007  March. Past Performance of Angel Broking Ltd  June. i. 2008  August.e.  Poor marketing activities for making the company known among the customers  A threat of loosing clients for any kind of weakness of the company. 2006  October..  Increasing competition against other brokers & DPs. 2006  September 2006 Crossed 2000000 Trading Accounts Created 2500 Business Associates ‘Major Volume Driver’ for 2006 Launched Mutual Fund and IPO Business 90 . low/no profit of Sharekhan’s clients would lead them to go for other broker/DP. An indirect opportunity generated by the market from its bullishness.  Indirect threat from instable stock market. 2008 ‘Major Volume Driver’ for 2007 Crossed 5000000 Trading Accounts  November.

2003 Initiated Commodities Broking Division First Publish Research Report  November. 2004 Launched Online Trading Platform  April. July. 2005 Launched the PMS Function Crossed 100000 Trading Account ‘Major Volume Driver’ for 2005  September. 1997 Angel Broking Ltd. Incorporated  December. 1998 Angel Capital & Debt Market Ltd. 2002 Developed Web-Enabled Back Office Software  November. 2006  March. Incorporated Products & Services 91 . 2002 Angel’s First Investor Seminar  March. 2006  October. 2004  April.

promise vs performance & industry trends  Estimates for future years’ earnings based on industry trends & company business plans Our Research & Advisory Products Market outlook  Provides price-sensitive information just before opening bell and analysis its impact on the market in terms of : 92 .Our intensive research process  Industry wise specialized team  Bottom-up approach: Identifying under valued stock with sound management  Top -down Approach: identifying promising sector & then companies with good valuations  Company visits and interaction with top & second line manager  Thorough analysis of company’s financial data .

 Key corporate development  Policy announcement  Geo-political news & views Technical Analysis  Analysis trading patterns and a view on the market position of key stocks/sectors for the next trading session  Short term (1-5 days) & medium term (10-20 days) views  Tracks individual scrip. the sensex & Nifty & other indices Derivatives analysis report  FII activity in the F&O Segment  Change in open market  Put call ratio  Cost of carrying cost  Index.based derivative products E-Broking E-broking Unique Online T rading products customized to suit different Investment / T rading needs Unique Online Trading Products Customized to suit different  Angel Investor investment/Trading needs    Angel Trade Angel Diet Angel Anywhere 93 .

anywhere Streaming quotes Refresh static rates when required Multiple exchanges on single screen Online fund transfer facility Angel Trade     User-friendly browser-based online trading platform. Streaming quotes Can be used in proxy as well as firewall environments.Angel Investor         User-friendly browser for investors Easy online trading platform Works in proxy and firewall system set up Integrated Back office: Access account information – anytime. anywhere Angel Anywhere     Application-based platform for day traders Trading based on historical charts and technical tools Streaming quotes for real time rate updates Online fund transfer facility 94 . Angel Diet       Application-based platform for day traders Hi-speed trading terminal on your desktop Streaming quotes for real time rate updates Multiple exchanges on single screen Online fund transfer facility Integrated Back office: Access account information – anytime. Advantage to access your account from anywhere.

anywhere Back-Office Online client details includes       Ledger Balance Cash Deposits with Angel Securities Holdings Charges levied/Paid in the client’s account Last auction/close-outs offered DP Holding for the last 3 transactions Portfolio Management Services  Managed by our prominent Fund Manager who are regularly fetched by TV media for their views on stocks  Understanding client’s risk & return profile  Offering the right blend of sector and stock exposures  Giving dedicated investement Advisors  Giving a choice of different schemes to suit every individual investor preferences  Catering to individuals. Trusts Angel Currency Future  Comprehensive Coverage on currencies  Reports covering in-depth fundamentals of the currencies  Latest economics data releases with their likely impact. NRIs. Corporate. Integrated Back office: Access account information – anytime. along with “Technical Levels”  Comprehensive reports on currencies ideally suited for any investors / Trader 95 . HUFs.

Holding cum Ledger statement  Efficient Pledge Mechanism     Angel gold  Personalized investment advisory  Portfolio Restructuring and continuous monitoring  Guidance experienced research team  Periodic Group meeting with investors .Depository Services No physical instruction required for the client’s sell obligations Lowest transaction charges in the country Acceptances & execution of instruction on fax A combined monthly “Bill Transaction. Pre-Paid Brokerage  Zero Account opening charges  Attractive Brokerage rates  Free DP AMC for 1 year  Assured gifts worth thousands with every account  Easy and fast recharge  Free Financial investment Application with every account Specialized Products 96 .

 Online Equity dealing Desk  NRI Investment Advisory Desk  PAN Card Assistance  Support for banking-PIS Accounts  Portfolio Management.  Dedicated offline Equity Dealing Desk. 97 . IPO services.Margin Funding  facility to allow clients to take higher exposer  instant liquidity for clients  margin is deposited in cash as well as collaterals  Enabling clients grab Earning Opportunity. Value Added Services NRI Services  NRI Services Desk for personalized Assistance. Insurance Angel Offers  Products to meet the objectives of risk coverage . Mutual Fund.investment and tax planning.

weekly. Loans. Advisory and help desk .and retirement needs. IPO and fixed Deposits  Products distributed by angel include  Unsecured loans  personal/business loans against properties  Secured loans. Risk management at angel  An efficient risk management system which enables the customer to effectively monitor the positions. Mutual funds  An integrated platform for online /offline mutual funds  Tie-up with all major AMCS  Dedicate Relationship Manager for Business Partners  Exclusive MF Research Reports by angel{daily. IPO-Distribution . savings.monthly. Assessment of your insurance needs after proper risk profiling.mutual fund reports}.NHB term Deposits. Fixed Deposits .  A wide array of individual life cover plans to meet your protection.  home loans/loan against properties  loan against securities/gold. 98 .

summarize its statistical attributes (such as means and standard deviations). and look at the distribution of values of the fields in your data. In regression problems you’re predicting a number such as the probability that a person will respond to an offer. A good model should never be confused with reality (you know a road map isn’t a perfect representation of the actual road). In classification problems you’re predicting what category something will fall into – for example. You must build a predictive model based on patterns determined from known results. The client report can be accessed from any place and gives categorical display of the ledger balance deposits and holdings. whether a person will be a good credit risk or not. or which of several offers someone is most likely to accept. visually review it using charts and graphs. 99 . Data Analysis The first and simplest analytical step in data analysis is to describe the data — for example. Data analysis can be used for both classification and regression problems. But data description alone cannot provide an action plan. then test that model on results outside the original sample. but it can be a useful guide to understanding your business.

Broking firms had an excellent rally in the previous fiscal and thus had extravagant plans of increasing their foothold across nation. The results posted by broking firms have been extremely poor in line with the market conditions. and some of them even globally. most of them have not only put their expansion plans on hold but also are slowing down in current businesses. Compared with the previous few quarters. These firms were on a growth spree. In September. The smaller broking outfits took a greater hit. the downtrend in the economy is also reflected in the stock market. invariably stock markets did perform well. these negative sentiments are reflecting in the stock prices of broking firms. the net profits of many leading broking houses have nearly halved despite the revenues declining marginally. only a marginal rise in their bottom line for the period. trading terminals of 95 broker members were deactivated in the F&O segment and 29 deactivations occurred in the cash segment. The market scene appears bleak for the securities firms. at best. adding branches and people across cities. broking outfits have faced the brunt in the current financial turmoil. the terminals of 36 broker members were deactivated whereas in August it was only 11. There were 885 active trading members in the F&O segment and 984 in the cash segment on NSE in October. 100 . The augmentation was also driven by the infusion of funds by the big private equity and foreign players wanting to invest in these broking outfits. Most of them have fallen by more than 75% from their highs early this year. The worst-hit seems to be the broking firms which are facing challenges in their declining business apart from stringent reluctance of financial institutions to lend them money for working capital. as they struggled to meet their margin requirements due to liquidity constraints. With the current financial meltdown worldwide. Recently. Quite expected. having reported either a fall in net profit or. revenue of broking houses have taken a major hit. Similarly. After banking stocks. When the macro conditions were fine.Indian Brokerage Industry Introduction With the fall in the turnover in the Equity segment by over 30 per cent since April.

24%.35%. as per the survey done by us is as follow: - 101 . Due to build up in call as well as put options. While February future is trading at premium of 17. FSL.95% to 55. IFCI and CHAMBLFERT.  • Stocks which are trading at decent positive cost of carry are RAJESHEXPO..25 points in previous trading session.Derivative Report  0.85 points against premium of 10.  • Nifty January future is trading at premium of 6.11. while Minify future’s open interest decreased by 3.30 points.  • PCR-OI is at the same levels of 1. as market closed at 3046.93%.  • IV of at the money option is 40. Data Analysis of Customers Different customers have the different objectives/purpose for opening the account in Angel Broking Ltd.75 levels. Historical volatility has reduced from 56.48%. BINDALAGRO.

provides the service of Restructuring. As per the survey the chart is as follows: Financial 102 . of Customers 1 137 45 245 57 26 31 7 39 Financial Restructuring Angel Broking Ltd.Objective for A\C opening Commodity Investment IPO Trading Investment & Trading Investment Trading & IPO IPO & Trading Investment & IPO Others No.

900

800

700

600

500

400

Limitations
Definition of perfection differs from individuals to individuals. No 200 matter how meticulous one is, the study that is completely based on

300

103

100

responses from a vast variety of people cannot be free from limitations. Though the present study aimed to achieve the abovementioned objectives in full earnest and accuracy, it was hampered due to certain limitations. Some of the limitations of this study may be summarized as follows:  Selection of the people who are under consideration as sample for the study may not be the best sample selected.  Sample size was limited due to the limited period allocated for the survey.  The selection of people to cover the various types of commodity trading ranging from agro products to energy and metals like gold and silver was tedious and time consuming.  Getting accurate responses from the respondents due to their inherent Problems, personality traits and mood fluctuations was a very difficult task.  Some respondents had to be re-contacted as per their convenience of time.  Some of the area in which the survey is carried out was very un –hygienic and over crowded.  Some data of customer is not proper. Like their contact number & address.

Findings
 In are, which we ware given out of 800 clients we have mostly found that they are not interested in the financial portfolio
104

restructuring. We found 90.7% no interested and 9.3% are interested in the city.  Most of the clients whom, we met Government employees, businessman, Hotels, malls, restaurants and chaiwala also. What about their interested in trading.  Most of the clients invested in the IPO, Trading, Investment, future and options and commodity markets. Out of 800 Most of the clients Interested in trading.

Awareness about angels new services
Online trading Margin funding PMS ANGEL GOLD PREPAID BROKERAGE LIFE INSURANCE (BIRLA SUN LIFE) MUTUAL FUND FIXED DEPOSIT BOND

No. of respondents
300 50 100 30 20 20 200 500 400

105

Suggestion: From the above chart we can see that various customer are about online trading. 106 . Company should give focus on online customer and try to give more information about angel gold and prepaid to these existing clients and create interest among them to take advantage of these new services. on the other hand few people aware about angel gold and its prepaid brokerage services.

BIBLIOGRAPHY BOOK Marketing Management Research Methodology Human Resource Production and Operation Phillip Kotler Kooper Aswathapa Adam & Abert Magazine Value Line Eagle Eye Business World NSDL 107 .

investopedia.bseindia.com www.nseindia.com www.com www.scribd.sski.com • • • • • • • 108 .com www.hindubusinessonline.coolavenue.wikipedia.researchandmarket.com www.com www.com www.Angelbroking.com www.Web Site www.com www.moneybhai.com www.

Sign up to vote on this title
UsefulNot useful

Master Your Semester with Scribd & The New York Times

Special offer for students: Only $4.99/month.

Master Your Semester with a Special Offer from Scribd & The New York Times

Cancel anytime.