ORGANIZATIONAL STUDY

OF

“MARWADI SHARES AND FINANCE

LIMITED”

Submitted By: PROJECT GUIDED BY:

HONEY. LANGALIYA MILAN UMARALIYA

BMS- 2 SEMESTER-3

Submitted to:

S.N.D.T. COLLEGE BHAVNAGAR

AFFILIATED TO:

S.N.D.T. UNIVERSITY

BOMBAY.

1

MARWADI SHARES AND FINANCE LIMITED

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DECLARATION

I undersigned HONEY LANGALIYA. a student of BMS-2

SEM-3 declares that I have prepared this project report on

“ORGANIZATION STUDY OF MARWADI SHARES AND

FINANACE LTD”. Under guidance of MR. MILAN

UMARALIYA.

Signature

____________________

(HONEY. LANGALIYA)

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ACKNOWLEDGEMENT

Let us begin our acknowledgement by thanking Mr. MILAN UMARALIYA and the whole

BMS faculty members 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.

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PREFACE

To survive in a competitive environment, theoretical knowledge must be supplemented with

practical knowledge. Being a B.M.S 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. with special

focus on mutual funds.

This project gave me an opportunity to raise our level of knowledge about financial market.

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INDEX

Sr. No Particular Page No

A. EXECUTIVE SUMMARY 1

B. INTRODUCTION 2

C. RESEARCH 10

D. ORGANIZATION & ITS HISTORY 14

E. DETAILS OF DEPARTMENTS 31

F. PRODUCTS & SERVICES 53

G. BUSINESS ANALYSIS OF THE ORGANIZATION 70

H. INDUSTRIES ANALYSIS 75

I. SWOT ANALYSIS OF ORGANIZATION 80

J FINDINGS & SUGGESTION 83

K. CONCLUSION 87

L. BIBLIOGRAPHY 89

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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 promoter’s 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.

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Introduction

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10

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, 11

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.

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Electronics form of Stock Exchange:

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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.

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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.

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Research Methodology

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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 Learner’s 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. Descriptive vs. Analytical research

II. Applied vs. Fundamental research

III. Quantitative vs. Qualitative research

IV. Conceptual vs. Empirical research.

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Here Marwadi welcomes to the Marwadi Online Research ‘Habit’- the special

research cell where some of India’s 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

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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

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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. MSFPL’s 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 Group’s 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 investor’s 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.

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HISTORY

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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.

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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

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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.

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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 well-

known sharp money senses drive our business.

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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.

30

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.

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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.”

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MILESTONES

The 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)

2007…The Company raised further private equity from Caledonia Investment plc.

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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.

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BRANCHESThere are Mainly 51 branches of Marwadi in different cities like…..

Ahmedabad Jamnagar

Amreli Junagadh

Anand Keshod

Baroda Manavadar

Bhavnagar Mithapur

Bhuj Mumbai

Delhi Okha

Dhoraji Porbandar

Dhangadhra Surat

Gondal Surendranagar

Gandhidham 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

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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.

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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 person’s network.

More than 300 employee’s strength.

Infrastructure spreading 10000 Sq. Ft. into 5 storied building.

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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.

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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

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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

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DETAILS OF DEPARTMENTS

1. OPERATION DEPARTMENT

2. FINANCE DEPARTMENT

3. MARKETING DEPARTMENT

4. HUMAN RESOURCE DEPARTMENT

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OPERATION DEPARTMENT

INTRODUCTION

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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.

45

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 today’s fast moving, technically fragile

business environment. The knowledge/awareness of security measures is very critical and

can’t be compromised on. The policy has been framed to safeguard against all possible

threats (viruses, bugs, spam’s etc.) that pose a major threat to their work processes.

The security policy is a plan outlining the methods adopted to project the company’s

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.

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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 client’s 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.

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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.

48

INTRODUCTION

Financial management is that managerial activity which is concerned with the

planning and controlling of the firm’s 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 shareholder’s 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 organization’s

finances.

Financial management is useful in determining the size of the enterprise, the

composition of assets of the enterprise, the mix of enterprise’s financing and

analyzing planning and control of financial affairs of the enterprise.

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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.

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MARKETING

DEPARTMENT

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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.52

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 Segmentation

Measurable

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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 individual’s 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

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Exporters

Service Sector

Self Employed

Doctors

Chartered Accountant

Lawyers

Institutions

Trust

Companies

House Hold

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 time’s

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.

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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 client’s 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.

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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

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.

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AMC

Individual

Agents

Banks and Large Distribution Companies

Institutional

Brokers

Corporate

Investors

Retail

InvestorsHNIs

Customer Segments

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.

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HUMAN RESOURCE DEPARTMENT

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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.

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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.

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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 employee’s

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 manager’s performance. The performance appraisal concerned with the

employee’s 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.

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65

PRODUCTS

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COMMODITIES EQUITY

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.

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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.

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.

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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 type’s 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.

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MUTUAL FUND

Mutual Fund is the ideal investment vehicle for Today’s 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, children’s plan, diversified

equity fund, balance fund, liquid fund, income fund, short term fund, sector fund, ELSS

(equity linked savings schemes) and pension plan.

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Passed Pool their

Back to Money with

ProcessOf

MutualFund

Generates Invest in

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

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Fund

Manager

Investors

Securities

Returns

SERVICES OFFERED BY THE COMPANY

Cash Market Derivative trading

Internet trading

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Commodity broking Initial Public Offerings

Portfolio Management Services

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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:

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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 .

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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.

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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 77

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.

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 investor’s 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 investor’s 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.

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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 IPO’s.

The IPO’s 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.

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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 IPO’s 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:

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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.

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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

company’s 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.

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Business Analysis of organization

COMPETITORS

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(1) SHAREKHAN:

Share khan, India’s 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 India’s 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 India’s 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. India’s 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.

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(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 India’s 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 client’s 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 one’s 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 customer’s 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.

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Major achievements:

Among BSE’s 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 BSE’s 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

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INDUSTRY ANALYSIS USING PORTER’S 5 FORCES MODEL

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POTENTIAL ENTERANT

InvestmartVarious Banks

GeojitCpher

UTI Securities Ltd.Refco Group Ltd.

IDBI Capital Mt Services Ltd.

COMPETITORS

ICICI Web Trade Ltd5paisa.com

Kotak Securities LtdIndia Bulls

Motilal Oswal Securities Ltd

HDFC Securities LtdAngle Broking

BUYERS

Small InvestorsFranchise/Business

PartnersMF Companies

HUFInstitutional Investors

SUPLERS

Web maintainers NSDLCDSLNSEBS

MCXNCDE

SUBSTITUTES

Mutual 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, that’s 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 software’s 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 software’s. 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/MNI’s and business partners.

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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 customer’s 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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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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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 people’s 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.

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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.

The whole industry is highly sensitive towards national and international’s

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.

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CONCLUSION

This Project Report is undertaken at “MARWADI SHARES AND FINANCE

LTD” as a part of the B.M.S 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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