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ORGANIZATIONAL STUDY

OF

MARWADI SHARES AND FINANCE


LIMITED

Submitted By:

submitted to:

Nikunjsinh sodhA(moo241)

dr: JITENDRA

SHARMA

2014-16
PGP-GBM
Company guide-Mr. Bhavik Shah

Xcellon institute

MARWADI SHARES AND FINANCE LIMITED

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

____________________

(HONEY. LANGALIYA)

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.

PREFACE

To 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

Sr. No

Particular

A.

EXECUTIVE SUMMARY

B.

INTRODUCTION

C.

RESEARCH

15

D.

ORGANIZATION & ITS HISTORY

18

E.

DETAILS OF DEPARTMENTS

35

F.

PRODUCTS & SERVICES

57

G.

BUSINESS ANALYSIS OF THE ORGANIZATION

75

H.

INDUSTRIES ANALYSIS

80

I.

SWOT ANALYSIS OF ORGANIZATION

85

FINDING &SUGGESTION

Page No

88

S.I.P. LEARNING

92

L.

CONCLUSION

96

M.

BIBLIOGRAPHY

98

Executive Summary
The Marwadi Group has emerged as one of the top 20 stock broking houses in India,
having memberships on BSE, NSE and the two leading commodity exchanges in the country
i.e. NCDEX and MCX. Marwadi Shares and Finance Ltd. is also registered as a depository
participant with CDSL.
Marwadi have built up customer trust and credibility through qualitative service and
prompt redressed of queries. Marwadi have more than 100000 customers, whose various
investment needs Marwadi are servicing, vindicates their index of customer credibility. The
company has always been driven by a desire to create values for its customers by customer
First approach, ethical and transparent business practices, reverence for professionalism and
implementation of cutting-edge technology. These have enabled them to flourish into one of
the top-20 stock broking houses in India.
MSFL strength lies in its team of young, talented and confident individuals. Qualified
and experienced professionals are there to carry out different functions under the leadership
of its promoters viz. Mr. Ketan Marwadi, Mr. Deven

Marvadi and Mr. Sandeep

Marwadi.
I hope that all the suggestions and findings might prove important and helpful to all
who want to invest.

Introduction
If 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

10

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.

11

Electronics form of Stock Exchange:

12

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 nonprofit 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.

13

14

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.

15

16

Research Methodology
Research inculcates scientific and inductive thinking and it promotes the development
of logical habits of thinking and organization. The research methodology has gone through
which path to solve the research problem and which tools have been adopted to achieve the
desired objective and more importantly it tells why only that path or tools have been chosen
and no other?
Research in common parlance refers to a search for knowledge. In fact research is an
art of scientific investigation. Research is an activity and as such the term should be used in a
technical sense. Research is an original contribution to the existing stock of knowledge
making for its advancement.

Definition:
The Advanced Learners Dictionary of Current English lay down the meaning of
research as a careful investigation or inquiry specially through search for new facts in any
branch of knowledge.
Redman and Mory define research as a systematized effort to gain new knowledge.

Types of research:
I.
II.
III.
IV.

Descriptive vs. Analytical research


Applied vs. Fundamental research
Quantitative vs. Qualitative research
Conceptual vs. Empirical research.

17

Here Marwadi welcomes

to the Marwadi Online Research Habit- the special

research cell where some of Indias finest financial analysts bring you intensive research
reports on how the stock market is faring, when is the time to invest, when to execute your
order and more. Study reports on Capital Market, Commodity Market, Mutual Funds, IPOs
and Economy on daily, weekly or monthly basis. And last, but not the least, you can get these
expert tips and recommendations as SMS on to your mobile phone. For further details call us
or Email us at research@marwadionline.net

Qualitative Research
They, at Marwadis, offer excellent research inputs to help clients in investment
decisions. Marwadi have an entire research team engaged in daily and distribution research.
Recognizing that research done is as good or bad as research distributing, they lay a great
emphasis on logistics of distributed the research. Marwadi have an entire team dedicated to
distributing the research. The idea is delivery of qualitative research inputs.

TRUST US TO HELP YOU MAKE YOUR DECISIONS

18

19

Organization & its history


COMPANY DETAIL
HISTORY OF MARWADI
MARWADI STORY
COMPANY PHILOSOPHY
MISSION & VISION
MILESTONES
ORGANIZATION STRUCTURE
BRANCHES
HIGHLIGHTS
COMPANY INFORMATION
BOARD OF DIRECTORS
TIME-KEEPING SYSTEM & MEMBERSHIP

20

COMPANY DETAIL
Marwadi 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

21

22

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
23

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.

24

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
Marwadi
Sandeep 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 wellknown sharp money senses drive our business.

25

COMPANY PHILOSOPHY

TRADITIONAL 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.

26

MISSION & VISION

"

To

be

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.

27

28

MILESTONES
The company crossed the following milestones to reach its present position as the
leading retail broking house in India

29

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.

30

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.

31

BRANCHES
There are Mainly 52 branches of Marwadi in different cities like..
Ahmedabad
Amreli
Anand
Baroda
Bhavnagar
Bhuj
Delhi
Dhoraji
Dhangadhra
Gondal
Gandhidham

Jamnagar
Junagadh
Keshod
Manavadar
Mithapur
Mumbai
Okha
Porbandar
Surat
Surendranagar
Veraval

Ankleshwar

Jetpur

Barmer

Khambhaliya

Bharuch

Kodinar

Disha

Kolhapur

Hyderabad

Kolkata

Indore

Mahuva

Jamshedpur

Manavadar

Mandvi

Morbi

Mangrol

Nadiad

Mehsana

Nasik

Navsari

Okha

Palanpur

Pune

Savarkundla

Una

Unjha

Valsad

Vapi

Ranavav

HIGHLIGHTS OF MARWADI GROUP:


MSFPL is among the top 25-broking houses of India, because of its focus on the fastgrowing 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.
32

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
33

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.

34

COMPANY INFORMATION

NAME
REGISTERED OFFICE &
CORPORATE OFFICE

: Marwadi Shares & Finance Pvt. Ltd.

: 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.

35

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

36

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.
2.
3.
4.

It helps in nothing of presence and absence of employess.


It helps in recording arrival time of employess.
It helps in nothing of employess leave the organisation during or before duty time.
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

37

38

DETAILS OF DEPARTMENTS
1. OPERATION DEPARTMENT
2. FINANCE DEPARTMENT
3. MARKETING DEPARTMENT
4. HUMAN RESOURCE DEPARTMENT

39

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:


40

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.)
2. Do not download any files from unknown sources. Do not open attachments, not even
those sent by a friend, without scanning them.
3. Do not run any program you have found on diskettes/CDs around your desk if you are
not completely sure that they are yours.
4. Please ensure that your system is scanned at least once a week with the scanning
software that is being used by the company.

41

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.

42

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.

43

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.

44

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.

45

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.

46

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.


47

To understand the strategies being applied by competitors.

Characteristic of Market Segmentation

Measurable

Accessible

Differentiable

Actionable

Substantial

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Approaches of Market Segmentation


For segmenting a market in effective manner marketers adopt approaches:

Mass Marketing
Target Marketing
Customized Marketing
Personalized 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 Sector
Farmers
Industrial Sector
Large Industries
Medium Industries
Small Scale Industries
Trade & Commerce Sector
Whole Seller
Retailers
Transporters
Exporters
Service Sector
Self Employed
Doctors
Chartered Accountant
Lawyers
Institutions
Trust
Companies
House Hold
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Salaried Persons
Pensioner

Factors Influencing Market

Demographic Factors
Psycho-graphic Factors
Economics Factors
Technological Changes
Legal, Cultural, Political Factors

Demographic Factors
Population Growth Rate
Level of Literacy
Social lass

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Psycho-graphic Factors
Life Style
Personality
Values

Economics Factors

Level of Economics Activity


Income
Level of Consumption
Pattern of Saving and Investment

Technological Changes
Production Process
Changes in needs and preferences
Offering offered

Legal, Cultural, Political Factors


Emergence of New Competitors
New Products
Changes 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.

51

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.

52

CHANNEL OF DISTRIBUTION
DISTRIBUTION MODEL
MARWADI SHARES use multi-level marketing channel for investment product
distribution. MARWADI provides franchisees at the various regions. Broker works
AMC
Individual
Agents

Retail
Investors

Banks and Large


Distribution
Companies

HNIs

Institutional
Brokers

Corporate
Investors

Customer
Segments
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 subbroker 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.

53

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.

54

HUMAN RESOURCE DEPARTMENT

55

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 provide
People 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.

56

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 consultant
Direct from colleges
Referent of the employees
Through jobs websites
Advertising 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.
57

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.

58

59

PRODUCTS

COMMODITIES

EQUITY

60

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.
1. EQUITY AND F & O SEGMENT
Retail
Institutional
2. COMMODITIES SEGMENT
Retail
Corporate(Institutional)
3. DEPOSITORY PARTICIPANT
For Equity
For Commodities
4

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 Investors
2. Institutional Investors
1.

Retail Investors

Retail Investors means individual investors who are not comes for any organization they
transact at their own.
61

2.

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.

62

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.

63

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.

64

Passed
Back to

Investors

Process
Of
Mutual
Fund

Returns

Pool their
Money with

Fund
Manager

Generates
Invest in
Securities

Advantages of Mutual Funds


The advantages of investing in Mutual Fund are:
Professional Management
Diversification
Convenient Administration
Return Potential
Low Costs
Liquidity
Transparency
Flexibility
Choice of Schemes
Tax Benefits

65

SERVICES OFFERED BY THE COMPANY


Cash Market

Derivative trading

Internet trading

66

Commodity broking

Initial Public Offerings

Portfolio Management Services

67

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.
Derivatives 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:

68

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 .

69

2. COMMODITY BROKING:-

Cotton Long Staple ,


Cotton Medium Staple,
Cotton Short Staple, Cotton Yarn, Kapas
Chana, Masur, Tur, Urad, Yellow Peas,

Basmati Rice, Maize, Rice, Sarbati Rice,

Wheat

Brent Crude Oil, Crude Oil, Furnace Oil Middle East Sour
Crude Oil

Arecanut, Cashew Kernel, Rubber

High Density Polyethylene (HDPE),


Polypropylene (PP), PVC

Guar Seed, Guar gum, Gurchaku, Mentha Oil, Potato, Sugar


M-30, Sugar S-30,

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.
70

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. We can sub divided in following meaner
A. Agricultural commodity like wheat, soybeans, rapeseed, cotton etc.
B. Precious commodity like gold and silver etc.
C. Other metal commodity like steel etc.
D. 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.

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2. 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.

72

Speed-e
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.

3. 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 brokerdealers 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
73

"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.

4. 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
74

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:
1. Company Research Reports: based on in-depth study and analysis of a
companys business.
2. Sectors Reports: Regular, Detailed reports covering all sectors.
3. Famous Five: Weekly selection of five companies for medium-to long term
investment.
4. Latest Results Analysis: Detailed analysis of financial results.
5. SMS Services: SMS updates on market information trading calls.

75

76

Business Analysis of organization

COMPETITORS

77

(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.

78

(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:
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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 200607...
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

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INDUSTRY ANALYSIS USING PORTERS 5 FORCES MODEL


POTENTIAL
ENTERANT
Investmart
Various Banks
Geojit
Cpher
UTI Securities Ltd.
Refco Group Ltd.
IDBI Capital Mt Services
Ltd.

SUPLERS

COMPETITORS

BUYERS

Web maintainers
NSDL
CDSL
NSE
BS
MCX
NCDE

ICICI Web Trade Ltd


5paisa.com
Kotak Securities Ltd
India Bulls
Motilal Oswal Securities
Ltd
HDFC Securities Ltd
Angle Broking

Small Investors
Franchise/Business
Partners
MF Companies
HUF
Institutional Investors

SUBSTITUTES
Mutual Funds
Insurance
Bank FD

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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.
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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.
Expected Retaliation: - whenever a new player comes in the industry, the old
companies have an option to reduce the prices of their product. This kind of practice
is called expected Retaliation which is also possible in this industry in terms of less
brokerage rates and reduced account opening charges.

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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.
The potential entrant in Rajkot city like Investmart, geojit and Cipher which are
coming in near future.
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.

The companies and banks which are having these instruments can plunge into this
industry. Banks are planning to jump while others may come

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86

SWOT ANALYSIS
During 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.

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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.

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89

Findings & Suggestion

Findings:

The production, supply and distribution of many agricultural commodities are


controlled by the government and only forwards and futures trading are permitted
in certain commodity items.

The most things we have seen are that the awareness of future commodity trading
is still not there.

People who knows, they believe that operators and big players in the market drive
this future commodity market.

Most of peoples feel that the qualities of the commodities are not as per the
requirement.

For the process of taking or giving delivery in future commodity market is lengthy,
costly, and required so many documents.

The option trading is still not allowed in commodity market so the risk
management process is incomplete. Because we all know that future trading has its
own limits.

The account opening process of future commodity trading is lengthy and requires
more documents.

The delivery centers of commodities are very less in India compare to other
developed countries.

People still considering that to invest in commodity market is very risky.

People still considering commodity market for speculation rather than business
purpose.
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The whole industry is highly sensitive towards national and internationals


environmental and political factors.

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Suggestions

Research Material
To survive in high competition, Marwadi should provide well-analyzed and subjective
material in easy language to their brokers and clients.

Less Charges
To attract more customers and compete in market, Charges of de-mate account should
be set according to rates prevailing in market.

Employee Satisfaction
A smart company creates a high level of employee satisfaction, which leads to higher
effort, which leads to higher-quality products and services, which create higher
customer satisfaction, which leads to more repeat business, which leads to higher
growth and profits, which leads to high stockholder satisfaction, which leads to more
investment, and so on. This is the virtuous circle that spells profit and growth.

Training
To increase professionalism, set on organization culture and also to increase the
productivity and efficiency of employees, there are needs for a well prepare training
program at each and every level of the organization and its implement this policies
strictly.

Advertising
Marwadi have to give advertisement in media like TV, Newspapers and Magazines
etc.

SIP learning
6.14Activity source

Learning

Read about the commodity gold at MCX

India is world`s largest market for gold


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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.
Read about the Platinum at MCX

The London Platinum and Palladium


market(LPMM)which provides the industry
benchmark price London fix. India
consumption automobile(55%)
petrochemical (25%),Jewellery (15%) and
electronic (5%).

Read about Silver at MCX.

Silver chemical symbol is Ag. London Bullion


market association (LBMA) is the global hub
of over the counter trading in Silver. Nearby
60% of India Silver`s demand comes from
farmers .Factor influence such as Indian`s
industrial growth, recession contract
specification trading unit 30kg. Base value
1kg. Maximum order size 600kg.

Read about the commodity rubber at MCX

Read about the commodity Aluminium at


MCX

Read about the commodity Copper at MCX

India, Thailand , China are the major


producers. Consumption 60% transportation
sector. Kerela 90% produce Rubber in India.
Factor influence rainy season , automobile
Industry.

Major exporter Germany, Russia, Canada.


India is 5th largest producer.(Hindalco,
NALCO, BALCO, Vedanta).Trading unit 5
ton. Base value 1kg.Maximum order size
150MT.

Copper is excellent conductor of heat and


electricity export country Chile, Zambia,
Japan, Russia and Peru. Sterlite, Hindal co,
Hindustan copper are major producers of
cooper. Maximum order size 70MT.

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Read about the commodity Iron ore at MCX


Iron ore demand in automobiles,
construction and manufacturing sector.
Major producers China, Brazil, Australia,
India. Factor influence inventory stock, new
mines. Maximum allowable open position
10,00,000 MT.
Read about the commodity Lead at MCX
Lead-Pb. Main producers Hindustan Zinc ltd.
And Indian lead ltd. Major producers Mexico,
Peru, Turkey. Trading units 5 tons. Base
value-Rs./kg. Maximum order size-100 tons.
Tick size 5 paisa/kg.

Read about the commodity Steel at MCX

Steel consumed by transport, factories, cars.


India steel prices mostly influenced by
domestic demand and supply scenario. Max
allowable 1,00,000 MT. Quality specificationMild steel ingots.

Read about the commodity Nickel at MCX


Russia, Canada and Norway are the world`s
largest exporters. Indian demand 40000 MT.
Factors influence fixes on the basis of the
rates that rule on the internationally spot
market. Economy event such as national
industrial growth, recession and inflation
effect. Maximum order size-24MT

Read about the commodity Tin at MCX

Read about the commodity Zinc at MCX

Read about Aviation Turbine fuel(ATF)

Producer-China, Peru, Brazil. London metal


exchange is the major referral market for
future trading in tin. India produce 10 tons.

Zn. Exporting countries Belgium, Canada


and Korea .in 2012 India production was
7,11,266 MT.max order-100 tons.
Tokyo commodity exchange and C-CCOM.
Export from India 20.7 millions barrels in
2005-06 to 25.6 million barrels in 2008-09.
Crude oil prices influence ATF prices.
94

Factors included natural disaster, interest


rate, disruptions in production due to
extreme weather or unforeseen events.

Read about the commodity Crude oil at MCX Russia, Saudi, Iran, US are the top
producing countries. Consumer Japan,
China, India. Factors influence OPEC
output, US crude and products currency
fluctuations. Max order 10000 barrels.
Attended meeting with my guide.
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.
Attended meeting with my guide
Discussed about from where I can get
investors like for Bullions 25 shops at C.G.
road, 25 APMC market for agri commodity,
25 manak chawk.Some question regarding
like are aware about Hedging. Have you
ever done Badla trading. Badla trading is
also known as arbitrage. Arbitrage means
suppose tea vendor selling at rs.5 its cost is
rs.4 so he making rs.1 profit but he is not
satisfied with that. So he identifies
government canteen which offered tea at
rs.2. He could now simply buy tea for rs.2
and sell it at Rs. 5 and can make a profit of
rs.3.This buying of thing on one market and
sell it to another market at a higher price is
knows as Arbitrage. Arbitrage opportunities
are short lived. I also learnt about hedging
which mean to eliminate risk by entering into
future forward contract.

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96

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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.

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BIBLIOGRAPHY
Books:
1. Work book of AMFI mutual fund testing program.
2. Kotler P. (2003). Marketing Management, New Delhi: Tata Mc Grow Hill, 11 th
edition.
3. NCFM book of Capital Market.
4. Times Of India and Business Standard newspapers.
5. 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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