ORGANIZATIONAL STUDYOFMARWADI SHARES AND FINANCE LIMITED

Submitted By: PROJECT GUIDED BY:Nikunjsinh sodhA(moo241) prof: JITENDRA SHARMA 2014-16 PGP-GBM Company guide-Mr. Bhavik Shah Submitted to:Xcellon institute

DECLARATION

I undersigned NIKUNJSINH SODHA . a student of PGP-GBM SEM-2 declares that I have prepared this project report on ORGANIZATION STUDY OF MARWADI SHARES AND FINANACE LTD. Under guidance of MR. BHAVIK SHAH.

Signature____________________ (NIKUNJSINH SODHA)

ACKNOWLEDGEMENT

Let us begin our acknowledgement by thanking Mr. BHAVIK SHAH and MR.JITENDRA SHARMA to provide us such an opportunity and a platform where we can know how to apply our managerial skills and expertise in the corporate world.To work at MARWADI SHARES AND FINANCE LTD is a very wonderful experience which provided us the knowledge about stock market and also an atmosphere where we can explore ourselves. I would like to thank my all friends & family members to guide me in each and everything which gives me deep sense of study and the understanding of the subject and find out appropriate results of my study which gives me fruitful results and also enhances my knowledge at the same time.

PREFACETo survive in a competitive environment, theoretical knowledge must be supplemented with practical knowledge. Being a student, project study forms an essential part of our course and bridges the gap between theoretical knowledge and practical knowledge.Financial market is most interesting and deep subject to study and analysis. It is most fluctuated market so it creates suspense every movement. Mutual fund is in emerging trend.This motivated us to take up the study of financial market .This project deal with various aspect of stock market like IPO, Online trading, Regulatory frame work etc. .This project gave me an opportunity to raise our level of knowledge about financial market.

INDEX CHAPTER -1 1.1-Industry analysis..7-12 1.2-Commodity industry analysis..13-14 1.3-Need for commodity industry.15 1.4-Portel five model 16-19 1.5-Major player.20-23 1.6-Functioning of industry24

CHAPTER-2

2.1-Company analysis. 2.2-Company detail..25 2.3-History of marwadi 26-28 2.4-Marwadi story.....29 2.5-Company philosophy.30 2.6-Mission &vision..31 2.7-Milestones32 2.8-Organisation structure 33 2.9-Branches34 2.10-Highlights35-36 2.11-Company information.37 2.12-Board of directors...38 2.13-Time keeping system & membership...39

CHAPTER-3 Detail of department 3.1-Opration department....41-44 3.2-Finance department..45-47 3.3-Marketing department..48-55 3.4-Humanresarch department...56-58 3.5-Product&searvice.59-74 3.6-Swot analysis ..75-76

CHAPTER-4 4.1-Task assigned77 4.2-Sip learning ..79 4.3-Conclusion...80 4.4-Bibliography.81

Chapter : 1. 1.1-INDUSTRY ANALYSISIf we look back in 1950sor60s, the Indian financial market was not so strong and the people were facing the problems regarding investment avenues. In fact the savings were too less and its mobilization was not adequate. Further, Indian financial market was not structured well to organize the savings and its mobilization

Nevertheless, after 1960s, the Indian financial sector has divided into two broad segments organized and unorganized. The organize segments includes commercial banks, development finance institutions, insurance companies, and other non-bank financial institutions including mutual funds, unit trusts etc. Among all, Mutual funds are the fastest growing institutions in the household savings sector.Due to their scientific investment approach and a number of investor-oriented benefits, mutual funds have emerged as the most popular investment vehicle in the developed countries. In India, the awareness for mutual funds was very slow due to some political and economic factors. Till 1986-87, there was a single institution that controlled the mutual fund market in India, namely Unit Trust of India (UTI).

Today, there are three different types of players operating in the Mutual fund market: UTI, Public sector mutual funds and Private sector mutual funds including many foreign players.

The Indian mutual fund industry has continuously growing since last 6-7 years. It is offering a far greater choice to investors ranging from international funds to emerging opportunities fund. The Indian mutual fund companies have developed attractive marketing strategies with an objective to increase the GDP and GNP of the country results in to developed country.

As an investor, we witnessed that mutual fund is one of the emerging investment option during the last 4-5 years. This could be possible due to effective marketing strategies adopted by various mutual funds. Even the government is also trying to promote the mutual fund through liberalized policies and reliefs provided to the investors who are keen to invest in mutual funds Marketing of mutual fund consist of various tools like direct selling or through intermediaries. UTI, the initiator of the marketing framework of the mutual fund industry, developed a huge agent network that spread out all over the country to sell its funds, private funds too. Therefore, focus was on the distribution channel with keeping a constant object to make a good relationship with them, which results into, boost the sales.

At finally yet importantly, the future looks bright for the industry in India going by a recent study conducted by the Associated Chamber of Commerce and Industry (Assoc ham) and AMFI. However, the industry is facing with certain critical issues and biggest one is to educate the investors.

Electronics form of Stock Exchange:

BSE (THE STOCK EXCHANGE OF MUMBAI)

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

The Exchange, while providing an efficient and transparent market for trading in securities, debt and derivatives upholds the interests of the investors and ensures redressal of their grievances whether against the companies or its own member-brokers. It also strives to educate and enlighten the investors by conducting investor education program and making available to them necessary informative inputs.

A Governing Board having 20 directors is the apex body, which decides the policies and regulates the affairs of the Exchange. The Governing Board consists of 9 elected directors, who are from the broking community (one third of them retire ever year by rotation), three SEBI nominees, six public representatives and an Executive Director & Chief Executive Officer and a Chief Operating Officer.

NSE (NATIONAL STOCK EXCHANGE)

NSE was incorporated in 1992 and was given recognition as a stock exchange in April 1993. It started operations in June 1994, with trading on the Wholesale Debt Market Segment. Subsequently it launched the Capital Market Segment in November 1994 as a trading platform for equities and the Futures and Options Segment in June 2000 for various derivative instruments.

NSE has been able to take the stock market to the doorsteps of the investors. The technology has been harnessed to deliver the services to the investors across the country at the cheapest possible cost. It provides a nation-wide, screen-based, automated trading system, with a high degree of transparency and equal access to investors irrespective of geographical location. The high level of information dissemination through on-line system has helped in integrating retail investors on a nation-wide basis. The standards set by the exchange in terms of market practices, Products, technology and service standards have become industry benchmarks and are being replicated by other market participants. Within a very short span of time, NSE has been able to achieve all the objectives for which it was set up. It has been playing a leading role as a change agent in transforming the Indian Capital Markets to its present form. The Indian Capital Markets are a far cry from what they used to be a decade ago in terms of market practices, infrastructure, technology, risk management, clearing and settlement and investor service.

1.2-Commodity Industry Analysis INTRODUCTIONIndian markets have recently thrown open a new avenue for retail investors and traders to participate commodity derivatives. For those who want to diversify their portfolios beyond shares, bonds and real estate, commodities are the best option. Till some months ago, this wouldnt have made sense. For retail investors could have done very little to actually invest in commodities such as gold and silver or oilseeds in the futures market. This was nearly impossible in commodities except for gold and silver as there was practically no retail avenue for pumping in commodities. However, with the setting up of three multi-commodity exchanges in the country, retail investors can now trade in commodity futures without having physical stocks. Commodities actually offer immense potential to become a separate asset class for market-savvy investors, arbitrageurs and speculators. Retail investors, who claim to understand the equity markets, may find commodities an unfathomable market. But commodities are easy to understand as far as fundamentals of demand and supply are concerned. Retail should understand the risk advantages of trading in commodities futures before taking a leap. Historically, pricing in commodities futures has been less volatile compared with equity and bonds, thus providing an efficient portfolio diversification option.

In fact, the size of the commodities markets in India is also quite significant. Of the countrys GDP of Rs.13,20,730 crore( Rs.13,207.3 billion), commodities related ( and dependent) industries constitute about 58 per cent. Currently, the various commodities across the country clock an annual turnover of Rs.1,40,000 crore ( Rs.1,400 billion). With the introduction of futures trading, the sizes of the commodities market grow many folds here on.

DEFINITION OF COMMODITIES

Any product that can be used for commerce or an article of commerce which is traded on an authorized commodity exchange is known as commodity. The article should be movable of value, something which is bought or sold and which is produced or used as the subject or barter or sale. In short commodity securities. In current situation, all goods and products of agricultural (including plantation), mineral and fossil origin are allowed for commodity trading recognized under the FCRA. The national commodity exchanges, recognized by the Central Government, permits commodities which include precious (gold and silver) and non-ferrous metals: cereals and pulses; ginned and un-ginned c otton; oilseeds, oils and oilcakes; raw jute and jute goods; sugar and gur;potatoes and onions; coffee and tea; rubber and spices. Etc.includes all kinds of goods. Forward Contracts (Regulation) Act (FCRA), 1952 defines goods as every kind of movable property other than actionable claims, money and

In the world of business, a commodity is an undifferentiated product whose market value arises from the owners right to sell rather than to use. Example commodities from the financial world include oil (sold by the barrel), wheat, bulk chemicals such as sulfuric acid and even pork bellies.

1.3-NEED OF COMMODITY MARKET IN INDIA

Achieving hedging efficiency is the main reason to opt for futures contracts. For instance, in February, 2007, India had to pay $ 52 per barrel more for importing oil than what they had to pay a week ago. The utility of a futures contact for hedging or risk management presupposes parallel or near-parallel relationship between the spot and futures prices over time. In other words, the efficiency of a futures contract for hedging essentially envisages that the prices in the physical and futures markets move in close unison not only in the same direction, but also by almost the same magnitude, so that losses in one market are offset by gains in the other.

Of course, such a price relationship between the spot and futures markets is subject to the amount of carrying or storage costs till the maturity month of the futures contract. Theoretically ( and ideally), in a perfectly competitive market with surplus supplies and abundant stocks round the year, the futures price will exceed the spot price by the cost of storage till the maturity of the futures contract. But such storage cost declines as the contract approaches maturity, thereby reducing the premium or contango commanded by the futures contract over the spot delivery over its life and eventually becomes zero during the delivery month when the spot and futures prices virtually converge. The efficiency of a futures contract for hedging depends on the prevalence of such an ideal price relationship between the spot and futures markets .

1.4-PORTER FIVE MODEL

Industry Analysis using Porters 5 forces Model

POTENTIAL ENTERANTInvestmartVarious BanksGeojitCpherUTI Securities Ltd.Refco Group Ltd.IDBI Capital Mt Services Ltd.

BUYERSSmall InvestorsFranchise/Business PartnersMF CompaniesHUFInstitutional InvestorsSUPLERSWeb maintainers NSDLCDSLNSEBSMCXNCDECOMPETITORSICICI Web Trade Ltd5paisa.comKotak Securities LtdIndia BullsMotilal Oswal Securities LtdHDFC Securities LtdAngle Broking

SUBSTITUTESMutual FundsInsuranceBank FD

1. SUPPLIERS

NSDL & CSDL are the regulatory bodies for Depository Participants like MSFL, IL&FS Pvt Ltd, ICICIdirect.com, etc. Also these regulatory bodies have got an upper hand as the bargaining power stock broking houses like MSFL, etc. would be less.

NSE & BSE are playgrounds where common an investor trade through stock broking houses, for which they have to take permission from NSE/BSE.

NSE & BSE are under the purview of SEBI, thats why stock broking houses like MSFL, have low bargaining power. But here there is one advantage that NSE/BSE have i.e. they cannot go for forward integration.

MCX & NCDEX are stock exchanges which trade in commodities and derivatives. Here again stock broking houses have to follow rules and regulation of the same.

Web maintainers are companies which maintain web sites & technical aspects of the same. Here stock broking houses like MSFL can have more bargaining power due to stiff competition among web maintaining companies.

Web maintainers are companies who make and maintain softwares for stock broking houses. If say for example stock broking houses switches over to other web maintainers then that company cannot understand the mechanisms of softwares. So it is quite high switching cost.

2. BUYERS

There are various types of investors who trade through stock broking houses like MSFL, which includes investors like small investors, medium net worth investors, business partners, institutional investors and mutual fund companies.

Here the bargaining power of stock broking houses depends on how big the investor is.

So here we can say that bargaining power of stock broking houses is high in case of small investors & HUF.

While its moderate in HNI/MNIs and business partners .

While its less in case of mutual fund companies and institutional investors.

There is competitive buzz in stock broking industry; competitors are offering low brokerage and best services with added feature. So switching cost is pretty much less. So the buyer can easily switch over to competitors product.

1. Entry Barriers

Huge capital: - Capital is necessary not only for fixed facilities but also for customers credit and absorbing startup losses. To start a stock broking house, one needs huge capital for technology up gradation and skilled manpower.

Technology: - Technology for stock broking houses is life saving device. Stock broking requires huge capital to make their products user friendly, which in turn requires capital to employ skilled manpower. Thus, technology could be one of the entry barriers.

Regulatory Constraints: - Obtaining a license is a tedious job for a stock broking house. It should comply with the regulation of the governing bodies like SEBI, NSDL, etc. For a stock broking houses to plunge into the stock broking industry, it needs to have some kind of financial background and expertise. Thus, regulators constraints could be an entry barrier.

Experience curve: - The core competency in this industry is the services which are provided to the end-users and the research based activities which includes TIPS, fundamental as well as technical script analysis. Also the most important thing which helps already established firms is-TRUST which people would be having on firms like MSFL , Motilal Oswal, etc. this is very difficult for new companies to imitate.

Network: - the Reach to the customer is the key factor in the industry. The network of the companies like Motilal Oswal, Marwadi, and ICICI is very efficient and spread all over India. It will take time for a new entrant to establish such a huge network (e.g. Angle), which say that, Network can come up as most difficult entry barrier to overcome

Retaliation which is also possible in this industry in terms of less brokerage rates and reduced account opening charges .

3-COMPETITORS

The company is facing the competition from local as well as national level players. The local players provide facility for off-line trading while the national players like ICICIdirect.com and Kotakstreet.com, HDFC Security provide online trading services.

There are also other big names like India bulls, Motilal Oswal, 5paisa and Karvy encircles the company form both the sides by providing online and off-line trading with competitive services.

4- POTENTIAL ENTRANT

The entrant which may take away the share of current players.

Nationalized banks are also thinking to enter in this field by tying up with broking houses. E.g. Bank Of Baroda.

5-SUBSTITUTES

Here substitutes are such instruments which can be used instead of investing in shares.

The instruments like Bank FD, insurance, mutual funds are the substitutes.

If the use of this instruments increase this may be disadvantage for the stock broking houses.

1.5-MAJOR PLAYERS

(1) SHAREKHAN:Share khan, Indias leading stock broker is the retailer of SSKI on origination with over eighty years of the experience in the stock market. Share khan offers depository services and trade execution facilities for equity, derivatives and commodity backed with investment advice tempered by decades of broking experience.. Its team of dedicated analyst is constantly at work to track performance and trends. Share khan runs Indias largest chain of share shops around 250 outlets in 113 cities.(2) ICICI SECURITIES LTD:ICICI Web Trade Limited (IWTL) maintains www.icicidirect.com and owns the license to use. This site gives the facility of 3 in 1 account i.e. the 3 in 1 accounts integrates your banking, broking, and demat accounts. This enables you to trade in shares without going through hassles of tracking settlements cycles, writing cheques and transfer instructions, chasing your broker for cheques or transfer instructions etc.(3) KOTAK SECURITIES:

Kotak Securities Ltd. is a strategic joint venture between Kotak Mahindra Bank and Goldman such is Indias leading stock broking house with a market share of 5 to 6%. Kotak Securities Ltd. has been the largest in IPO distribution. It was ranked one in 200 3-04 as Book Running Lead Managers in public equity offering by PRIME data base. It has also won the Best Equity House Award from Finance Asia in April 2004. The company has 42 branches serving around 100000 customers. Kotakstreet.com the online division of Kotak Securities Ltd. offers Internet Broking Service and also online IPO and mutual fund investments. Kotak Securities Ltd. manages assets over 1700 crores under PMS which is mainly to the high end of the market. Kotak Securities Ltd. has launched Kotak Infinity as a direct discretionary PMS which looks into the middle end of the market.

(4) INDIA INFOLINE LTD:

5paisa is the trade name of India Infoline Securities Private Ltd., member of NSE and BSE. 5paisa is wholly owned subsidiary of India Infoline Ltd. Indias leading player in e broking space in India. It offers two types of product:

(a) Investor Terminals (IT):

Investor Terminal is recommended for infrequent investors, who fall into buy and hold school of investing.(b)Trader Terminal (TT):

Trader terminal is for the dedicated day traders, who churn their portfolio on minor movement in the market, sometimes several times a day.

(5) INDIA BULLS LTD:India bulls are Indias leading retail financial services company with 77 location spread across 64 cities. While its size and strong balance sheet allow them to provide one with varied products and services and services at very attractive prices, over 750 clients relationship managers are dedicated to serving unique needs.India bulls is led by highly regarded management that has invested crores of rupees into a world class infrastructure that provides clients with real time services and 24/7 access to all information and products. The flagship Indiabulls professional network offers real time prices, detailed data and news, right at ones finger tips. This powerful technology is complemented by knowledgeable and customer focus relationship managers. We are creating a work of smart investors. This is what India bulls are saying. India bulls offer a full range of insurance to enhance customers wealth and hence, achieve their financial goals.

(6) ANGEL BROKING:

The Angel Group has emerged as one of the top 5 retail stock broking houses in India, having membership in BSE, NSE and the two leading commodity exchanges in the country i.e. NCDEX and MCX. Angel Broking is also registered as a depository participant with CDSL.As on date the group ix managed by a team of 150 professionals & 700 support staff and a nationwide network comprising 40 branches, over 2000+ sub brokers and business associates and 6000 terminals which cater to the requirements of more than 100000 retail clients. Angel Broking 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 of sub brokers in Mumbai and other places outside Mumbai, registered with SEBI, who act as channel partners for the company. The company has total staff strength of around 1200 employees who are spread accordingly across the head office and all the branches. As of now Angel Broking Ltd. is present in the country through its 12 Regional Offices.

Major achievements:

Among BSEs top ten volume Drivers in the equity segment during the year 2007-08. Ranked 5th leading Brokerage House of India by Dun & Bradstreet in 2008, Among BSEs top ten volume Drivers in the F & O) during the year 2006-07... Ranked at 23 among the most trusted companies of Gujarat by SARA in association with Zee Business

Our Presence Team of More than 1100+ dedicated employees Network of More than 69 branches Serving more than 1750 pin codes Having more than 768 Franchisee/ Sub-brokers Serving about 120000 Broking Clients. Serving about 141000 DP Clients Having 3538 Concurrent Trading Terminals

.1.6-FUNCTIONING OF INDUSTRY

Stock broking( Nse ,Bse, f&o) Life and general insurance Mutual fund Demet services

.CHAPTER-2.COMPANY DETAILMarwadi Group is a widely renowned financial services group in Saurashtra. It had its genesis in the year 1992 with the incorporation of Marwadi Shares & Finance Pvt. Ltd. (MSFPL). In the year 1996, it became a corporate member of National Stock Exchange of India Ltd. (popularly known as NSE), which was then an untested platform for securities trading. MSFPLs perspicacity had it that in future this new platform which was highly leveraged on technology would be the main liquidity purveyor in securities business. Marwadi Groups Vision now stands proven with NSE now at the commanding heights of Indian securities market.

Marwadi Group therefore has an established history of making the right move in an intuitive manner. Later in the year 1999, MSFPL became a Depository Participant of National Securities Depository Ltd. (NSDL) which was the first Depository launched in Saurashtra after Depositories Act was legislated in the year 1997. In deciding to become a DP, what guided was once again MSFPL intuitive feel for what the future would unfold, when skeptics stood apart, MSFPL took the plunge and brought the depository services to retail investors door-step in Saurashtra, bringing into MSFPL fold a retail mass of 60,000 plus customers.

Marwadi Group is driven by its three founder directors Shri. Ketan Marwadi, a Civil Engineer by profession and the major brain behind Marwadi Group, Shri Deven Marwadi an expert at risk management systems and Shri Sandeep Marwadi who is guiding the technology and systems in the Company. Having started out on sound principles of proprietary enterprise and laid a robust foundation in terms of financial and network, the promoters have now handed over the reins to professional mangers. The three promoter-directors now lay out the broad policy framework and future growth strategy for the group. Day-to-day management is vested in professional managers, who are invested with both authority and accountability. Today MSFPL have a corpus of managers who handle their respective departments and follow a systemic feedback of inputs to the higher management, which then improves upon the existing practices and standards.

HISTORY

Indian Stock Markets are one of the oldest in Asia. Its history dates back to nearly 200 years ago. The earliest records of security dealings in India are meager and obscure. By 1830's business on corporate stocks and shares in Bank and Cotton presses took place in Bombay. Though the trading list was broader in 1839, there were only half a dozen brokers recognized by banks and merchants during 1840 and 1850. The 1850's witnessed a rapid development of commercial enterprise and brokerage business attracted many men into the field and by 1860 the number of brokers increased into 60.

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

In 1887, they formally established in Bombay, the "Native Share and Stock Brokers' Association" (which is alternatively known as "The Stock Exchange"). In 1895, the Stock Exchange acquired a premise in the same street and it was inaugurated in 1899. Thus, the Stock Exchange at Bombay was consolidated.

Thus in the same way, gradually with the passage of time number of exchanges were increased and at currently it reached to the figure of 24 stock exchanges.

An important early event in the development of the stock market in India was the formation of the Native Share and Stock Brokers Association at Bombay in 1875, the precursor of the present-day Bombay Stock Exchange. This was followed by the formation of associations /exchanges in Ahmedabad (1894), Calcutta (1908), and Madras (1937). In addition, a large number of ephemeral exchanges emerged mainly in buoyant periods to recede into oblivion during depressing times subsequently.

In order to check such aberrations and promote a more orderly development of the stock market, the central government introduced a legislation called the Securities Contracts (Regulation) Act, 1956. Under this legislation, it is mandatory on the part of a stock exchange to seek government recognition. As of January 2002 there were 23 stock exchanges recognized by the central Government. They are located at Ahmedabad, Bangalore, Baroda, Bhubaneswar, Calcutta, Chennai,(the Madras stock Exchanges ), Cochin, Coimbatore, Delhi, Guwahati, Hyderabad, Indore, Jaipur, Kanpur, Ludhiana, Mangalore, Mumbai(the National Stock Exchange or NSE), Mumbai (The Stock Exchange), popularly called the Bombay Stock Exchange, Mumbai (OTC Exchange of India), Mumbai (The Inter-connected Stock Exchange of India), Patna, Pune, and Rajkot. Of course, the principle bourses are the National Stock Exchange and The Bombay Stock Exchange, accounting for the bulk of the business done on the Indian stock market.While the recognized stock exchanges have been accorded a privileged position, they are subject to governmental supervision and control. The rules of a recognized stock exchanges relating to the managerial powers of the governing body, admission, suspension, expulsion, and re-admission of its members, appointment of authorized representatives and clerks, so on and so forth have to be approved by the government. These rules can be amended, varied or rescinded only with the prior approval of the government. The Securities Contracts (Regulation) Act vests the government with the power to make enquiries into the affairs of a recognized stock exchange and its business, withdraw the recognition the task of regulating the stock exchange to the Securities Exchanges Board of India .

2.4-MARWADI STORY

Marwadi is a Gujarat based financial service group dealing in equities/commodities broking and portfolio management services. In the last 15 years we have grown into a network of more than 47 branches with 650+ committed professional people and 475+ channel partners across India. MARWADI has kept the faith of over 1.35 lakh investors and its growing. After establishing supremacy in Gujarat:

We are now expending National wide and to fuel our growth plans, we recently raised capital from U.K. - based investment companies.

Gujarati-Marwadi

Ketan MarwadiSandeep Marwadi (Managing Director)(Whole Time Director)

Gujarati by birth: Marwadi by surname they have got the best of both cultures. An entrepreneurial streak: a never- say-die spirit: a deep sense of brotherhood and all too well-known sharp money senses drive our business.

2.5-COMPANY PHILOSOPHYTRADITIONAL IN VALUES: NOT IN BUSINESS

What makes Marwadi Group different from any other broking firm is our ability to borrow from the wisdom and values of our past while keeping an eagle eye on the future. This is why u will find the latest in processes: infrastructure, and technology bundled together is served you at your doorstep: but more than that you will find a personal touch. While we value your money (trust us we will do everything to make it grow). But we value your relationship more. All our clients feel at home while trading with us, knowing fully well that there financial aspiration is being handled with care. We hope you will let us have the honors of serving you soon.

2.6-MISSION & VISION

"To be a world-class financial services provider by arranging all conceivable financial services under one-roof at affordable costs through cost effective delivery systems, and achieve organic growth in business by adding newer lines of business.

2.7-MILESTONESThe company crossed the following milestones to reach its present position as the leading retail broking house in India 1992...Marwadi Shares And Finance Pvt. Ltd. was incorporated. 1996...Became a corporate member of National Stock Exchange Of India - (NSE) 1998...Became a member of Saurashtra Kutch Stock Exchange (SKSE) 1999...Launched Depository services of Depository Participant under National Depository Security Ltd. (NSDL) 2000...Commenced Derivative Trading after obtaining registration as Clearing and Trading Member in NSE. 2003... (MCBPL) Became a corporate member of the National Commodity and Derivatives Exchange of India Ltd. 2003... (MCBPL) Became a corporate member of The Multi Commodity Exchange of India Ltd. 2004...Became a corporate member of Bombay Stock Exchange Ltd. (BSE) 2004...Launched Depository Services of Depository Participant under Central Depository Services (India) Ltd. 2005...Launched Portfolio Management Services 2006...MSFPL converted to Public Limited (Marwadi Shares And Finance Limited) 2007The Company raised further private equity from Caledonia Investment plc.

2.8-ORGANISATIONAL STRUCTURE

MANAGING DIRECTOR

DIRECTORS

CHIEF EXECUTIVE OFFICER

DEPUTY GENERAL MANAGER

SENIOR MANAGERS

MANAGERS

ASSISTANT MANAGERS

SENIOR OFFICERS

SENIOR EXECUTIVES

CLERKS

Thus, like any other formal organization Marwadi Shares & Finance Limited follows a professionalized organizational structure than a hotchpotch structure, in which there is no clear idea about the hierarchy patterned followed .

2.9-BRANCHESThere are Mainly 52 branches of Marwadi in different cities like..AhmedabadJamnagar

AmreliJunagadh

AnandKeshod

BarodaManavadar

BhavnagarMithapur

BhujMumbai

DelhiOkha

DhorajiPorbandar

DhangadhraSurat

GondalSurendranagar

GandhidhamVeraval

AnkleshwarJetpur

BarmerKhambhaliya

BharuchKodinar

DishaKolhapur

HyderabadKolkata

IndoreMahuva

JamshedpurManavadar

MandviMorbi

MangrolNadiad

MehsanaNasik

NavsariOkha

PalanpurPune

SavarkundlaUna

UnjhaValsad

VapiRanavav

2.10-HIGHLIGHTS OF MARWADI GROUP:

MSFPL is among the top 25-broking houses of India, because of its focus on the fast-growing retail brokerage segment.

MSFPL has a wide reach with a network of 48 branches, 400 sub-brokers who together services 75,000 plus trading customers and 1000 plus commodity customers.

MSFPL wide client base gives an excellent opportunity to cross-see third party products such as Mutual Fund, and Insurance.

In the Insurance Sector, we have major presence in Saurashtra as exclusive Corporate Agents of TATA-AIG both for life and non-life business.

MSFPL have a reputation for being first movers in adoption new products and putting it to the customers.

MSFPL have robust risk management system, which is proven by the fact of very low recoverable outstanding at any point of time.

MSFPL service delivery systems are leveraged by technology and therefore MSFPL have established global reach at optimal cost. MSFPL recognize that the ultimate in bottom line is the efficiency of delivery system. It is therefore MSFPL motto to continuously upgrade delivery systems through state-of-art technology.

In the heart of Rajkot city MSFPL have 10,000 sq. ft. of built-up area in which MSFPL have housed latest state of the art artifacts and gadgets for communication and networking. MSFPL have 300 plus computers in this building running on the back bone of leased data circuit lines, ISDN lines and V-sat in order to facilitate delivery of MSFPL products to remote location customers on real-time basis .

MSFPL have made foray into commodities trading, as is the wont of the Marwadi group, in this business. True to MSFPL motto, as on day, MSFPL are clocking a daily trading volume of Rs. 50 Crore, by just having taken it to Saurashtra region only. MSFPL are gradually penetrating the market outside Saurashtra in commodities too.

MSFPL have strong distribution network which has been primarily responsible for MSFPL ever enhancing volumes and therefore profitability. MSFPL use Channel Partners (such as sub-brokers, franchisees, remises etc.) to reach out to retail segment. MSFPL in the process provide livelihood to many people who would have otherwise hit the job-market. MSFPL have generous revenue sharing arrangement with Channel partners.

MSFPL average daily trading volume in all segments of both NSE and BSE put together amount to Rs. 220 Crore. The total daily trading volume on NSE and BSE put together around Rs. 220 thousand Crore, therefore amount of 1% to the National Average Daily Trading volume.

CURRENT SCENARIO

Servicing more than 1, 00,000 clients. Ranked among top-50 broking houses. Servicing more than 698 pin codes. Having more than 400 Franchisee/Sub-brokers & authorized persons network. More than 300 employees strength. Infrastructure spreading 10000 Sq. Ft. into 5 storied building.

2.11-COMPANY INFORMATION

NAME: Marwadi Shares & Finance Pvt. Ltd. REGISTERED OFFICE & CORPORATE OFFICE: Marwadi Financial Centre Nr. Kathiawad Gymkhana Dr. Radhakrishnana Road Rajkot 360 001 HEAD OFFICE: Marwadi Financial Center Nr. Kathiawad Gymkhana Dr. Radhakrishnana Road Rajkot 360 001 PHONE NO: 248 13 13 WEB SITE: www.marwadionline.com www.msfpl.com DIRECTORS: Mr. Ketan Marwadi Mr. Deven Marwadi Mr. Sandeep Marwadi C.E.O : Jeyakumar.A.S. DEPUTY GENERAL MANAGER: Mr. Haresh Maniar COMPANY SECRETERY : Mr. Tushit Mangukiya EMAIL : smarwadi@hotmal.com, Piyush.marwadi@marwadionline.

2.12- BOARD OF DIRECTORS

MANAGING DIRECTOR: Mr. Ketan Marwadi

WHOLE TIME DIRECTORS: Mr. Deven Marwadi & Mr. Sandeep Marwadi

CEO: Mr. K. S. Jay kumar

GENERAL MANAGER: Mr. Paras Maniar

COMPANY SECRETERY: Mr. Tushit Mangukiya

DY. MANAGER: Mr. Haresh Maniar

DP MANAGER: Mr. Arvind Gamot

H R MANAGER: Mr. Akshay Goswami

ACCOUNT MANAGER: Mr. Jayant and Mr. Bhargav

MARKETING MANAGER: Mr. Mihir Kothari

2.13-TIME KEEPING SYSTEM

There are numbers of employes working in this company. Marwadi has a shift of work and they follow the system of punching card system. Marwadi has only one shift of 8 hours starting from 9.30 A.M. to 7.30 P.M. during working hours they have lunch break of one hour start from 1.00 P.M. to 2.00 P.M. The following are the benefits of the timekeeping system.

1.It helps in nothing of presence and absence of employess.2.It helps in recording arrival time of employess.3.It helps in nothing of employess leave the organisation during or before duty time.4.It also makes the note of employees who do work for overtime.

This informations are also given to wage and salary admisistration.

MEMBERSHIP

Trading cum clearing members for cash & derivative segment National Stock Exchange of India Ltd. Bombay Stock Exchange Saurashtra Kutch Stock Exchange. Over the Counter Exchange India

CHAPTER-3 3.1-OPERATION DEPARTMENT INTRODUCTION Operation management, which was formerly considered as manufacturing management only, now it, is known as operations management. Many non-manufacturing organizations providing services like hospitals, banks, transportation, farming, warehousing etc. are now covered by operation management.

An operation by formal definition is a process of changing inputs into outputs, with the creation or adding of value to some entity. The processes of alteration or transportation or storage or inspection or any combination thereof add value to an entity is rightly called operations. The growth of service industry has brought with it the term Operations Management.

MARWADI SHARES is a services sector industry has some unique features, different from those, which has manufacturing base. These are:

Non-inventorial output of service, since generally no stock is produced. Variable demand. Labour-intensive operations mostly. Location of service is dictated by the location of the users.

Location Details

Site selection is an important activity, which decides the fate of the business. A good location may, reduce the cost of service and distribution helps in elevating either the competitive strength or the profit margin of the business. MARWADI SHARES has Location is in the heart of the city where service is easily available for all customer and easy access compare with other place that available in city. Location has major impact on success or failure of operation.

Advantages of this type of location compare to competitors:

Less service cost and It helps to reduce distribution cost

Layout details

There has an optimum arrangement of planning and has a proper flow of man and material, operating equipment like PC, storage space, material handling equipment and all other supporting service along with the design of best structure to contain all these facilities.

Maintenance

Information Security has emerged vital in todays fast moving, technically fragile business environment. The knowledge/awareness of security measures is very critical and cant be compromised on. The policy has been framed to safeguard against all possible threats (viruses, bugs, spams etc.) that pose a major threat to their work processes.

The security policy is a plan outlining the methods adopted to project the companys critical assets. This addresses the following:

1. Do not run any files without first scanning them, no matter what the file extension (e.g. .exe, .bat, .com, .doc etc.)1. Do not download any files from unknown sources. Do not open attachments, not even those sent by a friend, without scanning them.

1. Do not run any program you have found on diskettes/CDs around your desk if you are not completely sure that they are yours.1. Please ensure that your system is scanned at least once a week with the scanning software that is being used by the company.

STORE MANAGEMENT

In this department information regarding customer KYC (Know Your Client) a form which is registration form to join MARWADI SHARES AND FINANCE LTD also information of that clients ID and password addresses, contact no. , type of product using, etc.

For this company has CIS (Customer Information System) a computer based programming system which handle all this information with the help of this system it is easy for company to solve query of customer like forget password. It also helpful to make be active relationship with customers so that they can remain with the company and also helpful to generate lead or reference which work as an advertising of Marwadi in their group.

Company keep with copy of form called KYC called (Know Your Customer) with its head office minimum 7 years so it will be useful as and when it requires.

3.2-FINANCE DEPARTMENT

As MARWADI is a Service provider firm and it is also private company. So according to the company policy they do not provide the financial details of the company and hence not much information is available in this department from the company.

INTRODUCTION Financial management is that managerial activity which is concerned with the planning and controlling of the firms financial resources. It is an integrated decision making process concerned with acquiring, financing and managing assets to accomplish the overall goal of a business organization. It can also be stated as the process of planning decisions in order to maximize the shareholders wealth.

Financial management deals with the procurement of funds and their effective utilization in the business.Financial management comprises of forecasting, planning, organizing, directing, Co-coordinating and controlling of all activities relating to acquisition and application of the financial resources of an undertaking in keeping with its financial objective.

IMPORTANCE

Financial management is all about managing expenditure within a limited budget. It is about allocating money to the necessary items first. If after that having some money left, it must be used to pay off the debts. If there is still some money left it can be used according to the liking of the firm.

Finance management means management of all matters related to an organizations finances.

Financial management is useful in determining the size of the enterprise, the composition of assets of the enterprise, the mix of enterprises financing and analyzing planning and control of financial affairs of the enterprise.

ACQUISITION OF FUNDS

The main activity of MARWADI SHARES is that of the Stock Broking, Commodities trading and Demat Services. The main acquisition of firm is that of the brokerage and the NSDL charges in the company.

UTILIZATION OF FUNDS

The utilization of fund is mainly in the salaries, miscellaneous expenses and maintenance expenses of the branch. Company also spends lots on IT. Company believes that IT provides competitive advantage. Company purchase many advance software for facilitates the research department.

3.3-MARKETING DEPARTMENT

INTRODUCTION

A market may be considered as a convenient meeting place where buyers gather and sellers gather for exchange of goods and services.

Market may be defined as the process of exchange between seller and buyer. It involves a number of inter-related activities designed to plan, promote, distribute. And price a product or service in order to meet the wants and needs of both the parties in exchange transaction viz, consumer and producers. In short, marketing deals with identifying and meeting human and social needs. One of the shortest definitions of marketing is meeting needs profitably

MARKETING SCENARIO

Segmenting means to identify the group of people who have similar needs, wants, demand. Which helps company to determine the product portfolio. Segmenting also facilitates to provide customize services to the customers. Proper segmenting leads company to higher productivity. Segmenting provides competitive advantage in the market.

Indian stock market is one of the highest volatile markets in the world. Stock market fluctuates very much in intraday season. This volatility of the market leads to loss and profit of the investor. Normally this volatility affects the daily traders rather than long term investors.

There are many types of investors in the market like long term investors: medium term or short term that what different type of advice for investment. Short-term investor or what we can call daily trader wants tips for daily trading. MARWADI SHARES has own research department. There are many researchers are working in this department they daily collect information through internet, T.V., newspapers, etc. and generate daily reports investment.

MARWADI is looking for those investors who seek advice for investment for long term as well as daily trading. MARWADI is also looking for those investors who want to study the market. For that type of investors MARWADI provides various research reports.

Their research is based on in-depth research done in collaboration with the renowned marker-expert Mr. Rajesh Jain. HABIT- our stock market research periodicals, has made sound investing a habit with their clients.

Segmentation of Market

Market segmentation is the process of dividing / sub dividing a potential market into distinct sub market of consumer with common needs and characteristics. Market segmentation is done with a view to enable the organization to cater to their customers need more effectively. Market segmentation is starting the step in applying the marketing strategy.

Purpose of Market Segmentation

To understand the varying and specific needs of the customer of the different sections.To understand the motivation that promotes the customer to buy.To understand the behavioral attitude and habits of different groups of customers.To develop suitable product / services for each segment.To understand the strategies being applied by competitors.

Characteristic of Market SegmentationMeasurableAccessibleDifferentiableActionableApproaches of Market SegmentationFor segmenting a market in effective manner marketers adopt approaches: -

Mass MarketingTarget MarketingCustomized MarketingPersonalized Marketing

In Broking House, earlier the products were designed keeping in view the concept of mass marketing. But as a competition appeared brokers are forced to design products in such away, which will take care of, there target market or even individuals customers. For the purpose of marketing of broking products in India market can be segmented in a way that will take care of customer of different sections.

Market Segmentation for purpose of Marketing Broking Products

Agriculture SectorFarmersIndustrial SectorLarge IndustriesMedium IndustriesSmall Scale IndustriesTrade & Commerce SectorWhole SellerRetailersTransportersExportersService SectorSelf EmployedDoctorsChartered AccountantLawyers

InstitutionsTrustCompanies House HoldSalaried PersonsPensioner Factors Influencing Market

Demographic FactorsPsycho-graphic FactorsEconomics FactorsTechnological ChangesLegal, Cultural, Political Factors

Demographic Factors

Population Growth RateLevel of LiteracySocial lass

Psycho-graphic FactorsLife StylePersonalityValues Economics FactorsLevel of Economics ActivityIncomeLevel of ConsumptionPattern of Saving and Investment Technological ChangesProduction ProcessChanges in needs and preferencesOffering offered

Legal, Cultural, Political FactorsEmergence of New CompetitorsNew ProductsChanges in Political System / Legal System

Above Said factors influence market. Marketers should thing of the above said factors before developing marketing strategies and should develop strategies in such a way, which will take care of all the changes, which will occur due to the above factors. In recent times technological changes / products are effecting marketing of broking products in a great manner, so marketer should take care of this while developing strategies for marketing of broking products.

TARGET MARKET

Target market is the second step after segmentation. In MARWADI company try to provide customize information to their customers. They are focusing on those customers who are ready to invest in the market and want trading and investment indication. Company provides tips to their customers by various mediums like through chat, SMS, mail, etc. Clients also call for query. Intraday trading, the investors who do not want to invest but want to earn profit in very short period through intra-day trading are getting daily trading advice for research dept. As soon as clients receive call immediately they pick up this stock & sell it at higher level by that way they earn profit.

POSITIONING

MARWADI are providing enough reward for your investment. Company claims that they are providing best advice for investment. For that company is very much conscious about the research department which is handled by the marketing expert Mr. Rajesh Jain. Company focuses on clients specific product.

While Marwadi offers recommendations for investment company observes the investors ability to take risk, their investment objectives, personal financial situation, investment time horizon.

CHANNEL OF DISTRIBUTION

AMCIndividual AgentsBanks and Large Distribution CompaniesInstitutional BrokersCorporate InvestorsRetail InvestorsHNIsCustomer SegmentsDISTRIBUTION MODELMARWADI SHARES use multi-level marketing channel for investment product distribution. MARWADI provides franchisees at the various regions. Broker works intermediaries between investors and company. Company also opens its branches in the key centers. Company has both forward and backwards flow of activity through the channel. Company distributes stationary, brokerage and information forward to its sub-broker. The sub-broker sends filled forms, queries, and amount of investment, etc. back to the company.

Allover 475 franchises and over top 25 broking houses more than 650 employees strength, serving about 1.35 lakh clients and serving more than 1100 pin codes.

PRICING POLICY

Pricing policy of the company is one of the most important functions of the management.

Pricing has its own importance in the marketing.

At MARWADI SHARES the price of the product is decided by the top management.

Marwadi product pricing are competitive for their competitors.

3.4-HUMAN RESOURCE DEPARTMENT Today every company understand the importance of HR Dept. in the org whether it is big or small. Every organization need human effort to convert in put into output or in other words we can say to done the organization activity we need human power. A good Human Resource Dept. leads to higher productivity and higher profitability. HR Dept. facilitates right number of people, at right time, and right person to complete the tasks.

Anagram has also HR Dept. who plays a key role in the organization to providePeople for various jobs. HR manager is continuously in contact with the various depts. According to the department needs he appoints the person for the jobs. HR dept. has the following functions.

Manpower Planning

Manpower planning is the basic function of HR. In the manpower planning HR dept Recognize the need of the employee at the various levels in the organization. In Anagram the manpower planning is take the shape with the help of various dept. head, or he key person in the dept. Dept. head or the key person arrange meeting with the HR manager. They are discussing about which type of person they want for their dept.

Manpower planning also done on the basis of the future plan of the company if the company has future expansion plan according to it manpower planning has been done. For example how many new branches of the company are likely to be open in this year? To open a new branch minimum there are three to four people are required including the branch manager. No doubt if the branch opened in big city manpower will be more. So according to branch size manpower planning is done.

Recruitment

Recruitment is the first step of hiring people. After manpower planning completes recruitment process is started. In Anagram recruitments are done on various methods. Following are the source of the recruitment.

Through consultantDirect from collegesReferent of the employeesThrough jobs websitesAdvertising in leading newspapers Anagram usually takes the help of various HR consultants. At the same time they are recruiting from the colleges like som-lalit institute of managements, B.K.School of management, H.L.Inst. Of Management Etc.

Selection:

Selection is the second step for hiring people. In selection the application which are come into the recruitment are sort out here. The candidates, who are not matching with the job profile, are rejecting here. Then from appropriate candidates are called for interview. In interview there are different persons sit to take interview, In fact a panel is made for it. The panel includes the HR manager, respective dept head, one expert of their field, & some time board member for the higher-level job in the org. When the candidate selected into the interview, then he has to provide various references. HR manager checks the references if they are adequate, he sends the final order to the candidate. Then candidate has to sign the job agreement.

Training:After selection when he comes to join the organization, Marwadi arranges the induction program for the new employees. By that way new person come to know the organization people, its environment, and organization culture. New person tries to adjust with the organization environment. The introduction with the board of directors, head of the dept, superior, and colleagues are the part of the induction program. The purpose of the induction program is to simply introduce the new person to his/her working environment.

Marwadi believes in on job training new employees directly go to their job. When he/she faces any difficulty they can ask their superior or their colleagues. By that way anagram believes employees learn fast and get the practical experience of the job helps to improve the knowledge. It facilitates employee to adjust with the working condition quickly.

Performance Appraisal:Performance appraisal is the important function in HR. In anagram there is annual program is arrange for the performance appraisal of the employee. For performance appraisal there are certain formats in anagram. The appraisal is done on the basis of employees different attributes, his/her superior assessment their colleagues opinion, and their behavior in the organization. Appraisal is also done by regional basis. Sometime board of directors assesses the top managers performance. The performance appraisal concerned with the employees initiative at the work place, his/her attendants, teamwork, and his /her behavior with his superior and their colleagues.

Latest practices:

With the changing business environment any business organization has to adopt the change. As the new HR theory and principles are coming anagram also modify the recruitment policy. Now they are focused on the knowledge assessment of employees, how much employee is aware from the latest knowledge. Anagram considers the experience and knowledge equally.

3.5-PRODUCTS

EQUITY

COMMODITIES

It is absolutely necessary for any company to have distinct product in the portfolio. This strategy provides competitive advantage. Today market is become Global so it is increased competition in the market. A client wants different service together so company offers different services to client.

In this competitive market MARWADI SHARES offers various products together. MARWADI provides product like trading of equity shares, F & Os, and commodities.

0. EQUITY AND F & O SEGMENT Retail Institutional 0. COMMODITIES SEGMENT Retail Corporate(Institutional) 0. DEPOSITORY PARTICIPANT For Equity For Commodities 1. MUTUAL FUND:

EQUITY AND F & O SEGMENT

In this segment company offers trading facility for equity and future & options (F & O). For the trading purpose a client has to open a trading account in the company. After opening a trading account in the company, company provides the particular ID for trading. When client want to buy or sell the stock he/she has to give ID to the operator. According to ID operator buy or sell the stocks. A client can contact operator through mobile or telephone. Client also gives prior instructions for the transaction. When the transaction take place same day in the evening the bill of the contract generates.

In this segment, there are two types of accounts:

1. Retail Investors1. Institutional Investors

0. Retail Investors

Retail Investors means individual investors who are not comes for any organization they transact at their own.

0. Institutional Investors

Institutional Investors include any firms, banks, companies, and trust. In short any a person who invest on behalf of any organization or invest on the name of the organization called institutional investors.

COMMODITIES SEGMENT

Commodities market is booming right now. Commodities market includes different types of commodities like guar, cotton, aluminum, metal, copper, zinc, etc. There are basically two types exchanges for trading of commodities one is MCX (Multi Commodities Exchange Of India Ltd) and second is NCDEX (National Commodities and Derivatives Exchange of India). MARWADI commodity brokers pvt. ltd. (MCBPL) is a member of both the exchanges. At MCBPL, we note only have sound global information and knowledge based but also combined this with excellent local knowledge when it comes to commodities. With their extensive national wide presence and network, their product and market knowledge encompasses diverse commodities and markets.

DEPOSITORY PARTICIPANT

Depository participant is described as an agent of depository. They are intermediaries between the depository and the investors. MARWADI SHARES in the DP member of NSDL (National Securities Depository Ltd). So MARWADI is the recognized member of the NSDL. In MARWADI client can open their demat accounts. Company opens demat of equity as well as commodities.

MUTUAL FUND

Mutual Fund is the ideal investment vehicle for Todays complex and modern financial scenario. The sources of revenue like fix income instruments, real estate, derivatives etc. But due to less information available it cannot be understood easily.

A Mutual Fund is the answer to above all the situations. Now days a mutual fund is a strong tool to pull a large amount from the market. There are several schemes to invest money and get more revenue. With the help of Mutual fund an investor can invest their money indirectly in share market.

Mutual Fund industry was started in India with establishment of UTI (1963), which is only player in the market of mutual fund up to 1987. During that time mutual fund market refers the unit link schemes like Master Share and Master Gain.

Mutual Fund provides varieties of schemes for different kind of customers to suit their goals. Mutual fund have open-ended and close-ended schemes, childrens plan, diversified equity fund, balance fund, liquid fund, income fund, short term fund, sector fund, ELSS (equity linked savings schemes) and pension plan.

Investors Passed Pool their Back to Money with

FundManager Process

ReturnsOfMutualFund

Generates Invest in

Securities

Advantages of Mutual Funds

The advantages of investing in Mutual Fund are:

Professional ManagementDiversificationConvenient AdministrationReturn PotentialLow CostsLiquidityTransparencyFlexibilityChoice of SchemesTax Benefits

SERVICES OFFERED BY THE COMPANY

Cash Market Derivative trading

Internet trading

Commodity broking Initial Public Offerings

Portfolio Management Services

1. STOCK BROKING

CASH MARKET:

Marwadi facilitates buying and selling of securities on National Stock Exchange, Mumbai. They try and make it seamless for their customers by offering the services to transfer securities through their Demat services. Customers are also offered the facility of trading through --, thereby making it a doorstep taking our service to customer's doorstep. They offer integrated -- services by bundling all peripheries services together thereby making securities broking a seamless experience

DERIVATIVE TRADING:

Derivatives are one of the most complex instruments. Delivery contracts, stating what is to be delivered for a fixed priced at a specified place on a specified date. These contracts were undertaken between farmers & merchants to element the risk arising out of uncertainty future prices of grains. A derivative is a contract whose value is derived from value of another assets, known as the underlying, which could be a share, a stock market index, and interest rate, a commodity or a currency.

erivatives are very similar to insurance. Insurance protects against specific risks, such as fire, floods, theft & so on. Derivatives on the other hand take care of market risks volatility in interest rates, currency rates, commodity prices, & share prices. Derivatives offer a sound mechanism for insuring against various kinds of risks arising in the world of finance.

INTERNET TRADING:

The organization also provides the facility of trading through Internet. Now days it is the fastest and the rapid form of dealing in all the sectors. The company provides the facility of net trading through:-

Application based & Software based. Systems

Company is planning to start the Browser based trading in short span.Marwadi helps their customer in knowing the complete details about their Bank, Demat and e-broking account which will be available to the customers 24 hours a day through the Internet. Also the customer will be able to access all the details regarding their orders and trades, trading conformation, financial statements, transaction statements, holding statements, online.

Moreover, NRI, Overseas corporate bodies and FIIs, including all Indian Residents/corporate can avail this facility from any corner of the world .

2. COMMODITY BROKING:-Sug Commodity market in India is growing. India, being an agro-based economy, has market for most of the agro-based commodities. India is the largest consumer of gold in the world, which implies a huge market for the yellow metal. India has huge spot markets for all these commodities. Indoor for huge market for Soya, Ahmedabad for castor seed and Surendranagar for cotton etc.

India has a long history of commodity futures trading, extending over 125 years. In mid 1960s, due to wars, natural calamities and consequent shortages, futures trading in most commodities were banned. After liberalization policy GATT agreement in the early nineties, the government realized the need for futures trading to strengthen competitiveness of Indian agriculture and the commodity trade and industry

Commodity derivative market:

As name suggest, commodity derivatives markets trade contracts for which the underlying asset is a commodity. Wecan sub divided in following meaner 1. Agricultural commodity like wheat, soybeans, rapeseed, cotton etc. 1. Precious commodity like gold and silver etc. 1. Other metal commodity like steel etc. 1. Energy commodity like coal etc.

Organized market:

In organized market all the transaction done through structure form so it is safer and more convenient. In organized derivative commodity market there are well known exchanges such as NCDEX, MCX and etc.

Marwadis are providers of broking services in Capital Market. With the opening up of commodities sector and the consequent felt need to provide price stabilization services, the Govt. mandated host National level Commodity Exchanges, as part of our effort to broad base services to our customers; we have taken membership of National level commodity exchanges.

A new investment option is commodities. Until a few months ago this would not have made sense, as there was no avenue for trading in commodities. Marwadis have taken the pioneering step of bringing this to your doorstep. Good ness met historically prices in commodities are less volatile than equities and bonds, thus providing an efficient diversification option.

1. DEPOSITORY PARTICIPANTS: -

Marwadi were the first corporate DP in Saurashtra. As on date it services approximately 65000 clients through a well-equipped branch network. It offers online services offered by NSDL / CDSL. They are affiliate to both NSDL and CDSL in order to give optimum cost solution to our clients keeping in view the investors needs. It place a high premium our customer service and prompt reporting in order to ensure integrity of transactions. Its customer centric schemes have been designed to address the investors needs relative to element (such as trade execution dematerialization and re materialization) economical prices.

We are giving following services without any charges:

Demat Confirmation Remat Confirmation Rejection of Instruction Special Transaction Statement as our desire Allotment of Shares under IPO Every quarter we send the Ledger to each Client We inmates the renewal of account Speed - e services client without any additional charges We are offering special retention service under which client does not need to give the trade and charges per trade 13 Rs. NSDL offers web-enabled facility of (1) viewing latest balances and transactions that have taken place in the last five days and also download of the screen (through IDEAS Internet based Demat account statement) and (!!) submitting delivery instruction slips (in paper form) The users of Speed-e can also monitor the status of their instructions However for availing of these facilities both the DP and the client have to you pay up certain one time and recurring charges.

1. IPO SUBSCRIPTION SERVICES: -

Marwadi Shares & Finance Ltd. also provides the service of subscribing IPOs. The IPOs of all but the smallest of companies are usually offered to the public through an "underwriting syndicate," a group of underwriters who agree to purchase the shares from the issuer and then sell the shares to investors. Only a limited number of broker-dealers are invited into the syndicate as underwriters and some of them may not have individual investors as clients. Moreover, syndicate members themselves do not receive equal allocations of securities for sale to their clients.

The underwriters in consultation with the company decide on the basic terms and structure of the offering well before trading starts, including the percentage of shares going to institutions and to individual investors. Most underwriters target institutional or wealthy investors in IPO distributions. Underwriters believe that institutional and wealthy investors are better able to buy large blocks of IPO shares, assume the financial risk, and hold the investment for the long term.

By their nature, investing in an IPO is a risky and speculative investment. Brokerage firms must consider if the IPO is appropriate for individual investors in light of their income and net worth, investment objectives, other securities holdings, risk tolerance, and other factors. A firm may not sell IPO shares to an individual investor unless it has determined the investment is suitable for that particular investor.

Even if the firm decides that an IPO is an appropriate investment for an individual investor, the brokerage firm may sell the IPO only to selected clients. For example, before you can purchase an IPO, some firms require that you have a minimum cash balance in your account, are an active trader with the firm, or subscribe to one of their more expensive or "premium" services. In addition, some firms impose restrictions on investors who "flip" or sell their IPO shares soon after the first day of trading to make a quick profit. If you flip your IPO shares, your firm may refuse to sell you other IPOs altogether or prevent you from buying an IPO for several months. You can often find these restrictions on the firm's website.

1. PORTFOLIO MANAGEMENT SERVICES: -

If one earns money in bagfuls, but don't have the time or inclination to manage it. If this description fits one, do consider entrusting your money to a professional portfolio management service (PMS). In return for a fee, portfolio managers offer to craft a basket of stocks, bonds or even mutual funds that would fit your personal investment goals and risk preferences.

Though a few portfolio managers offer standardized packages for a sum as small as Rs 5-10 lakh, it may take a minimum investment size of Rs 25-50 lakh to fetch you a customized portfolio. Apart from cash, you can also hand over an existing portfolio of stocks, bonds or mutual funds to a PMS that could be revamped to suit your profile.

PMS OR MFs:

But why should you opt for PMS instead of a mutual fund? Here are a few aspects on which portfolio managers say they score over the standardized products offered by mutual funds:

Asset allocation: You may know what stocks, equity funds or bonds you would like to own, but do you know how much of your savings you should allocate to each of these? The decision on asset allocation will be crucial in determining investment returns over the long term. With PMS, an asset allocation plan is tailor-made for you, after a detailed check on your investment goals, savings pattern and appetite for risk.

Timing: Have you ever kicked yourself for switching your entire portfolio into equities just before they tanked? If you have, you probably need help with regard to timing of investments. Once you hire a portfolio manager, you can expect assistance on when you should be investing more money into equities and when you should be bailing out. A portfolio manager may also switch a portion of your portfolio into cash, if he perceives a big risk to stock prices. The focus is on preserving value.

Flexibility: You are bullish on FMCG stocks, but find that equity funds have marginal exposures to the sector. In a PMS, you can expect the portfolio manager to accommodate your sector preferences when he invests. But don't expect to completely dictate what stocks or sectors your portfolio manager will buy for you, as he will be the best judge of that.

Also, portfolio managers do not have to stick to any rigid rules on what proportion of your money will be invested in each sector or stock. They can also use liberal doses of cash or derivative instruments to pep up your returns. Mutual fund managers have their hands tied on these aspects by SEBI regulations.

Value added services:

Company provides various value added services to their clients:0. Company Research Reports: based on in-depth study and analysis of a companys business. 0. Sectors Reports: Regular, Detailed reports covering all sectors.0. Famous Five: Weekly selection of five companies for medium-to long term investment.

3.6-SWOT ANALYSISDuring this training at Marwadi, I had come to know the Strengths Weaknesses Opportunities Threats for the company and it is very useful for a company to analyze them. Therefore, the SWOT analysis is presented here and the suggestions for maintaining strengths and removing weaknesses are explained.

STRENGTHS:

Well-maintained infrastructure. Dedicated, Intelligent and Loyal staff. On-line trading products. Lowest brokerage and other charges less than. Competitors. The best investment advice correct up to 70-90 % through dedicated Research and reports. Wide product range to enable the clients to choose the best alternative. One of the best DPs in India. A positive image in the existing clients.

WEAKNESSES: Less awareness in the market. Time consuming process for account opening, resolving the problems of the customers, etc. Service quality is not maintained accordingly how they are promoted.

OPPORTUNITIES:

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

THREATS:

Decreasing rates of brokerage in the market. Increasing competition against other brokers & DPs Poor marketing activities for making the company known among the customers. A threat of loosing clients for any kind of weakness of the company. Loosing the untapped market with the entry of the Competitors.

.CHAPTER-4-4.1-TASK ASSIGNED

Define commodityCommodity DerivativeCommodity exchanges:-ICX MCX NCDEX There is 2 types of trading involved

-Future Trading It involve national broker,local broker like Marwadi share & finance ltd. And his client are like HUF etc.

-Physical Trading It involve APMC(Agriculture product market committee)mundi,National mundies they supply to wholeseller and wholeseller supply to retailer and retailer to household

-Forward market It is the informalover-the-counterfinancial marketby whichcontracts for future deliveryare entered into. Standardized forward contracts are calledfutures contractsand traded on afutures exchange

.

To visit different web site of Global exchangesCOMEX (Commodities Exchange)NYMEX(New York Mercantile Exchange)CBOT(Chicago Board of Trade)LME(London Metal Exchange)Kitco.comBloomberg.comFoxstreet.comMoneycontrol.comNetdania.com

-ACTION-:Read books and visit different different website about retail broking industry4.2-SIP LEARNING Task 1 Read about the commodity gold at MCXLearningIndia is world`s largest market for gold jewellery. London is the world`s biggest clearing house. Trading session Monday to Friday 10 a.m. to 11:55 p.m. Maximum order size 10 kg. Different types of gold are there like Gold m, Gold Petal. Factors influence the market is Hedging interest of producers and Macroeconomic factor such as US $,interest rate.Task 2Attended meeting with my guideLearning Mr. Bhavik sir told me about what question to be add in questionnaire like do you with exchange trade mechanism, if yes then which of the following exchange you prefer like MCX, NCDEX, NMCEIL. What products have you traded on this exchange like Bullions, Agro, Metals. What is your experience with commodity market. In which of the company you would like to deal more and more time? like Marwadi, Kotak street , India bulls Task 3Attended meeting with my guideLearning Discussed about from where I can get investors like for for agri commodity, 25 manak chawk.Some question regarding like are aware about Hedging Bullions 25 shops at C.G. road, 25 APMC market. Have you ever done Badla trading. Badla trading is also known as arbitrage. Task 4Observe trading terminalLearningI learn about how to dill in trading terminal

4.3- CONCLUSION

This Project Report is undertaken at MARWADI SHARES AND FINANCE LTD as a part of the P.G.P.G.B.M programme. Marwadi is mainly involved in the brokerage business. Company offers various services to their clients like Trading in BSE and NSE. Company also provides trading in NCDEX and MCX. Marwadi is also Depository Participant of NSDL.

This project contains the details about the Marwadi and its functioning. Marwadi is spread all over India. Marwadi has around 475 franchises and 25 top broking houses. This project covers the broking industry growth and its future ideas. Project contains the concept of the capital market. I learnt many things through this project which I did not know before. I came to know that how trading is done, how to buy or sell the shares, how to fill up the forms, what are the necessary formalities and so on.

4.4-BIBLIOGRAPHY

Books:

1. Work book of AMFI mutual fund testing program.1. Kotler P. (2003). Marketing Management, New Delhi: Tata Mc Grow Hill, 11th edition.1. NCFM book of Capital Market.1. Times Of India and Business Standard newspapers.1. Research Methodology book of C.R. Kothari.

WEBSITES:

www.marwadionline.com

www.google.com

www.amfiindia.com

www.moneycontrol.com

www.stockmarket.com

www.bseindia.com

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