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Preface
&he Summer program offere" !y the IBM 'o((ege) is an en(ightening course for those *ho are *ishing to master their Business a"ministration s%i((s) *ith their %no*(e"ge$ &his is an uni+ue course *hich is the co((a!oration of MB,$ It not on(y "e-e(opes your management ta(ent !ut a(so "e-e(op your technica( s%i(($ It imparts the necessary theoretica( %no*(e"ge a!out the fie(" !ut a(so pro-i"es an opportunity to practica((y e.perience the app(ication of the !usiness a"ministration fun"amenta(s in the corporate as *e(( as the noncorporate sector$ &he Summer &raining at the en" of secon" semesters is an i"ea( opportunity for the stu"ent to ha-e a first han" e.perience *ith the "ifferent functions of the In"ustria(/ 'orporate sector$ &his faci(itates the un"erstan"ing an" re(ate" (earning to the stu"ents) *hich might !e critica( to (earn the su!ject !etter$ I ha-e un"ergone my summer training at ,nge( Bro%ing 0imite"$ 1ere I got to the practica( %no*(e"ge of 2+uity Mar%ets an" 3eri-ati-es Mar%et$ I enjoye" the (earning of the su!ject an" its functions an" main(y the e.citement of sitting in a "ea(ing room an" practica((y -ie*ing the tra"es ta%ing p(ace on the share mar%et screen$ I *as una*are a!out the ro(e of e.changes an" "epositories in the secon"ary mar%et$ 1ere I rea((y got practica( %no*(e"ge a!out the ro(e of S2BI) 4S2) an" BS2 etc$ in the secon"ary mar%et$ 4o* I am a*are a!out the !uying an" se((ing system in the secon"ary mar%et through !ro%ing firm or su!-!ro%er$ I am -ery much than%fu( to Mr. ick! T"o#a$) Branch & Product Head) main !ranch Maha(aya comp(e. '$ 5$ oa") ,hme"a!a"$ I therefore ha-e p(easure to present my training report) *hich) I hope as per the curricu(um re+uirements$
AC%NOLE&GEMENTS
6&here is no such thing as a se(f ma"e man) *e a(( are ma"e up thousan"s of others7 8 5eorge ,"ams$ I am in"e!te" to my facu(ty) the 9acu(ty of Socia( :or% for pro-i"ing the stu"ents an opportunity to e.perience the practica( *or%ing of the %no*(e"ge imparte" to us theoretica((y$ I am gratefu( to ,nge( Bro%ing 0imite" for a((o*ing me to un"erta%e my summer training in the organi;ation$ &o mention) I *ou(" (i%e to e.ten" my gratitu"e to*ar"sMr$ 1arshit Bha-sar (Business 3e-e(opment 1ea") Mr$ <ira( =apa"ia (Business 3e-e(opment Manager) &hey he(pe" me "uring my entire training program$ I *ou(" a(so (i%e to than% Mr$ Jic%y &homas an" Mrs$ Pan%ti shah *ho faci(itate" me in my practica( (earning$
Gli#'$e to CRM ( )
Before *e !egin to e.amine the conceptua( foun"ations of ' M) it *i(( !e usefu( to "efine) *hat is ' M> , narro* perspecti-e of customer re(ationship management is "ata!ase mar%eting emphasi;ing the promotiona( aspects of mar%eting (in%e" to "ata!ase efforts$ ,nother narro*) yet re(e-ant) -ie*point is to consi"er ' M on(y as customer retention in *hich a -ariety of after mar%eting tactics is use" for customer !on"ing or staying in touch after the sa(e is ma"e$ Shani an" 'ha(asani "efine re(ationship mar%eting as 6an integrate" effort to i"entify) maintain) an" !ui(" up a net*or% *ith in"i-i"ua(s consumers an" to continuous(y strengthen the net*or% for mutua( !enefit of !oth si"es) through interacti-e) in"i-i"ua(i;e" an" -a(ue-a""e" contacts o-er a perio" of time7$ &he core theme of a(( ' M an" re(ationship mar%eting perspecti-es is its focus on co-
operati-e an" co((a!orati-e re(ationships !et*een the firm an" its customers) an"/or other mar%eting actors$ ' M is !ase" on the premise that) !y ha-ing a !etter un"erstan"ing of the customers? nee"s an" "esires *e can %eep them (onger an" se(( more to them$ 5ro*th Strategies Internationa( (5SI) performe" a statistica( ana(ysis of 'ustomer satisfaction "ata encompassing the fin"ings of o-er @)000A customer sur-eys con"ucte" !y ,nge( Bro%ing 0t"$ ' M (customer re(ationship management) is an information in"ustry term for metho"o(ogies) soft*are) an" usua((y Internet capa!i(ities that he(p an enterprise manage customer re(ationships in an organi;e" *ay$ 9or e.amp(e) an enterprise might !ui("
a "ata!ase a!out its customers that "escri!e" re(ationships in sufficient "etai( so that management) sa(espeop(e) peop(e pro-i"ing ser-ice) an" perhaps the customer "irect(y cou(" access information) match customer nee"s *ith pro"uct p(ans an" offerings) remin" customers of ser-ice re+uirements) %no* *hat other pro"ucts a customer ha" purchase") an" so forth$
&he essence of the information techno(ogy re-o(ution an") in particu(ar) the :or(" :i"e :e! is the opportunity to !ui(" !etter re(ationships *ith customers than has !een pre-ious(y possi!(e in the off(ine *or("$ By com!ining the a!i(ities to respon" "irect(y to customer re+uests an" to pro-i"e the customer *ith a high(y interacti-e) customi;e" e.perience) companies ha-e a greater a!i(ity to"ay to esta!(ish) nurture) an" sustain (ong-term customer re(ationships than e-er !efore$ &he u(timate goa( is to transform these re(ationships into greater profita!i(ity !y increasing repeat purchase rates an" re"ucing customer ac+uisition costs$ In"ee") this re-o(ution in customer re(ationship management or ' M$ 1 as it is ca((e") has !een referre" to as the ne* 6mantra7 of mar%eting$ 2 'ompanies (i%e Sie!e() 2$piphany) Brac(e) Broa"-ision) 4et Perceptions) =ana an" others ha-e fi((e" this ' M space *ith pro"ucts that "o e-erything from trac% customer !eha-ior on the :e! to pre"icting their future mo-es to sen"ing "irect emai( communications$ &his has create" a *or("*i"e mar%et for ' M pro"ucts an" ser-ices of CDE !i((ion in F999 an" *hich is forecaste" !y I3' to gro* to CF2G !i((ion !y 200E$3 &he nee" to !etter un"erstan" customer !eha-ior an" focus on those customers *ho can "e(i-er (ong-term profits has change" ho* mar%eters -ie* the *or("$
&ra"itiona((y) mar%eters ha-e !een traine" to ac+uire customers) either ne* ones *ho ha-e not !ought the pro"uct category !efore or those *ho are current(y competitors? customers$ &his has re+uire" hea-y "oses of mass a"-ertising an" price-oriente" promotions to customers an" channe( mem!ers$ &o"ay) the tone of the con-ersation has change" from customer ac+uisition to retention$ &his re+uires a "ifferent min"set an" a D "ifferent an" ne* set of too(s$ , goo" thought e.periment for an e.ecuti-e au"ience is to as% them ho* much they spen" an"/or focus on ac+uisition -ersus retention acti-ities$ :hi(e it is "ifficu(t to perfect(y "istinguish the t*o acti-ities from each other) the ans*er is usua((y that ac+uisition "ominates retention$
According to one ind*$tr! +ie,- CRM con$i$t$ of( 1e(ping an enterprise to ena!(e its mar%eting "epartments to i"entify an" target their !est customers)
manage mar%eting campaigns *ith c(ear goa(s an" o!jecti-es) an" generate +ua(ity (ea"s for the sa(es team$
,ssisting the organi;ation to impro-e te(esa(es) account) an" sa(es management !y optimi;ing information share" !y mu(tip(e emp(oyees) an" stream(ining e.isting processes (for e.amp(e) ta%ing or"ers using mo!i(e "e-ices)
,((o*ing the formation of in"i-i"ua(i;e" re(ationships *ith customers) *ith the aimof impro-ing customer satisfaction an" ma.imi;ing profitsH i"entifying the most profita!(e customers an" pro-i"ing them the highest (e-e( of ser-ice$
Pro-i"ing emp(oyees *ith the information an" processes necessary to %no* their customers) un"erstan"
their nee"s) an" effecti-e(y !ui(" re(ationships !et*een the company) its customer !ase) an" "istri!ution partners$
' M--'ustomer e(ationship Management--has entere" the mainstream$ 3espite the uncertainty of the economy) ' M is !eing thrust into corporate !u"gets an" ta(%e" a!out as a critica( initiati-e !y hun"re"s of 9ortune F)000 an" tens of thousan"s of other companies$ It has gone from !eing an important e"ge in the !usiness *or(" to a necessary too( for sur-i-a($ &he notion of the customer as %ing or +ueen is once again the ru(e$ 1o* you treat this is a mission-critica( !usiness issue$ But) *hat is ' M an" ho* "oes it change the *ay companies "o !usiness> &he changes in the *or(" ha-e !een so "ynamic an" so "ramatic
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that the path is not necessari(y a(( that o!-ious$ 1o* ' M impacts that !usiness path is a continuing source of "e!ate in the *or(" of corporate management$ Managing re(ationships *ith customers has !ecome a critica( organi;ationa( competency$ 5et *inning strategies for ac+uiring an" retaining customers !y (e-eraging the (atest a"-ance" techno(ogies$ &his course *i(( teach you ho* to se(ect the right too(s for your !usiness-- so it can gro* to"ay--an" on into the future$ 0agging means (ost customers) *hich means "amage to the !ottom (ine$ But ho* "o you not (ag *hen customers are mo-ing (ightning fast to "eman" constant changes in the spee" to comp(ete their transactions> 1o* "o you %eep your customers *hen the mo-e to another company is nothing more than a mouse c(ic% an" a minute a*ay> ' M is the ans*er$ 'ustomer e(ationship Management) a strategy that (e-erages -ery a"-ance" techno(ogies is the *ay to cut to the 2Fst 'entury !usiness chase$
Hi$tor! of CRM 'ustomer e(ationship Management (' M) is one of those magnificent concepts that s*ept the !usiness *or(" in the F990?s *ith the promise of fore-er changing the *ay !usinesses sma(( an" (arge interacte" *ith their customer !ases$ In the short term) ho*e-er) it pro-e" to !e an un*ie("y process that *as !etter in theory than in practice for a -ariety of reasons$ 9irst among these *as that it *as simp(y so "ifficu(t an" e.pensi-e to trac% an" %eep the high -o(ume of recor"s nee"e" accurate(y an" constant(y up"ate them$ In the (ast se-era( years) ho*e-er) ne*er soft*are systems an" a"-ance" trac%ing features ha-e -ast(y impro-e" ' M capa!i(ities an" the rea( promise of ' M is !ecoming a rea(ity$ ,s the price of ne*er) more customi;a!(e Internet so(utions ha-e hit the mar%etp(aceH competition has "ri-en the prices "o*n so that e-en re(ati-e(y sma(( !usinesses are reaping the !enefits of some custom ' M programs$
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In t"e .eginning/ &he F9I0?s sa* the emergence of "ata!ase mar%eting) *hich *as simp(y a catch phrase to "efine the practice of setting up customer ser-ice groups to spea% in"i-i"ua((y to a(( of a company?s customers$ In the case of (arger) %ey c(ients it *as a -a(ua!(e too( for %eeping the (ines of communication open an" tai(oring ser-ice to the c(ients nee"s$ In the case of sma((er c(ients) ho*e-er) it ten"e" to pro-i"e repetiti-e) sur-ey-(i%e information that c(uttere" "ata!ases an" "i"n?t pro-i"e much insight$ ,s companies !egan trac%ing "ata!ase information) they rea(i;e" that the !are !ones *ere a(( that *as nee"e" in most cases# *hat they !uy regu(ar(y) *hat they spen") *hat they "o$ Ad+ance$ in t"e 01123$ In the F990?s companies !egan to impro-e on 'ustomer e(ationship Management !y ma%ing it more of a t*o-*ay street$ Instea" of simp(y gathering "ata for their o*n use) they !egan gi-ing !ac% to their customers not on(y in terms of the o!-ious goa( of impro-e" customer ser-ice) !ut in incenti-es) gifts an" other per%s for customer (oya(ty$ &his *as the !eginning of the no* fami(iar fre+uent f(yer programs) !onus points on cre"it car"s an" a host of other resources that are !ase" on ' M trac%ing DDDD customer acti-ity an" spen"ing patterns$ ' M *as no* !eing use" as a *ay to increase sa(es passi-e(y as *e(( as through acti-e impro-ement of customer ser-ice$ Tr*e CRM co#e$ of age ea( 'ustomer e(ationship Management as it?s thought of to"ay rea((y !egan in earnest in the ear(y years of this century$ ,s soft*are companies !egan re(easing ne*er) more a"-ance" so(utions that *ere customi;a!(e across in"ustries) it !ecame feasi!(e to rea((y use the information in a "ynamic *ay$ Instea" of fee"ing information into a static "ata!ase for future reference) ' M !ecame a *ay to continuous(y up"ate un"erstan"ing of customer nee"s an" !eha-ior$ Branching of information) su!-fo("ers) an" custom tai(ore" features ena!(e" companies to !rea% "o*n information into sma((er su!sets so that they cou(" e-a(uate not on(y concrete statistics) !ut
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information on the moti-ation an" reactions of customers$ &he Internet pro-i"e" a huge !oon to the "e-e(opment of these huge "ata!ases !y ena!(ing offsite information storage) *here !efore companies ha" "ifficu(ty supporting the enormous amounts of information$ &he Internet pro-i"e" ne* possi!i(ities an" ' M too% off as pro-i"ers !egan mo-ing to*ar" Internet so(utions$ :ith the increase" f(ui"ity of these programs came a (ess rigi" re(ationship !et*een sa(es) customer ser-ice an" mar%eting$ ' M ena!(e" the "e-e(opment of ne* strategies for more cooperati-e *or% !et*een these "ifferent "i-isions through share" information an" un"erstan"ing) (ea"ing to increase" customer satisfaction from or"er to en" pro"uct$ &o"ay) ' M is sti(( uti(i;e" most fre+uent(y !y companies that re(y hea-i(y on t*o "istinct features# customer ser-ice or techno(ogy$ &he three sectors of !usiness that re(y most hea-i(y on ' M -- an" use it to great a"-antage -- are financia( ser-ices) a -ariety of high tech corporations an" the te(ecommunications in"ustry$ &he financia( ser-ices in"ustry in particu(ar trac%s the (e-e( of c(ient satisfaction an" *hat customers are (oo%ing for in terms of changes an" persona(i;e" features$ &hey a(so trac% changes in in-estment ha!its an" spen"ing patterns as the economy shifts$ Soft*are specific to the in"ustry can gi-e financia( ser-ice pro-i"ers tru(y impressi-e fee"!ac% in these areas$ In recent years ho*e-er) se-era( factors ha-e contri!ute" to the rapi" "e-e(opment an" e-o(ution of ' M$ &hese inc(u"e# F$ The growing de-intermediation process in many in"ustries "ue to the a"-ent of sophisticate" computer an" te(ecommunication techno(ogies that a((o* pro"ucers to "irect(y interact *ith en"-customers$ 9or e.amp(e) in many in"ustries such as air(ines) !an%s insurance) soft*are or househo(" app(iances an" e-en consuma!(es) the "e-interme"iation process is fast changing the nature of mar%eting an" conse+uent(y ma%ing re(ationship mar%eting more popu(ar$ 3ata!ases an" "irect mar%eting too(s gi-e them the means to in"i-i"ua(i;e their mar%eting efforts$ 2$ Advances in information technology, net*or%ing an" manufacturing techno(ogy ha-e he(pe" companies to +uic%(y match competition$ ,s a resu(t pro"uct +ua(ity an" cost are no (onger significant competiti-e a"-antages$
D$ The growth in service economy. Since ser-ices are typica((y pro"uce" an" "e(i-ere" at the same institution) it minimi;es the ro(e of the mi""(emen$ E$ ,nother force "ri-ing the a"option of ' M has !een the total quality movement. :hen companies em!race" &JM it !ecame necessary to in-o(-e customers an" supp(iers in imp(ementing the program at a(( (e-e(s of the -a(ue chain$ &his nee"e" c(ose *or%ing re(ationships *ith the customers$ &hus se-era( companies such as Motoro(a) IBM) 5enera( Motors) Kero.) 9or") &oyota) etc forme" partnering re(ations *ith supp(iers an" customers to practice &JM$ Bther programs such as JI& an" M P a(so ma"e use of inter"epen"ent re(ationships !et*een supp(iers an" customers$ G$ ustomer e!pectations are changing a(most on a "ai(y !asis$ 4e*(y empo*ere" customers) *ho choose ho* to communicate *ith the companies across -arious a-ai(a!(e channe(s$ ,(so no*a"ays consumers e.pect a high "egree of persona(i;ation$ L$ "merging real time) interacti-e channe(s inc(u"ing e-mai() ,&Ms an" ca(( centre that must !e synchroni;e" *ith customer?s non-e(ectronic acti-ities$ &he spee" of !usiness change) re+uiring f(e.i!i(ity an" rapi" a"option to techno(ogies$ @$ In the current era of hyper competition) mar%eters are force" to !e more concerne" *ith customer retention an" customer (oya(ty$ I$ ,s se-era( researches ha-e foun" out retaining customers is less e!pensive an" more sustaina!(e competiti-e a"-antage than ac+uiring ne* ones$ 9$ Bn the supp(y si"e it pays more to "e-e(op c(oser re(ationships *ith a few suppliers than to "e-e(op more -en"ors$ F0$ &he glo#ali$ation of *or(" mar%etp(ace ma%es it necessary to ha-e g(o!a( accountmanagement for the customers$
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&efinition( )
6' M is concerne" *ith creating impro-e" shareho("er -a(ue through the use of customer centric !usiness processes an" the "e-e(opment of appropriate re(ationships *ith consumers$7 I#'le#enting CRM( ' M re+uires an integration of a firmMs resourcesH peop(e) operations an" mar%eting capa!i(ities to "e(i-er a""e" -a(ue to the customers$ ' M shou(" pro-i"e !usinesses an" organi;ations *ith a N$ingle +ie,3 of their customers an" across irrespecti-e of the interacti-e channe( or me"ium through *hich the customer accesses the ser-ice or pro"uct$ 9or e.amp(e) a !usiness (e$g$ hote() customer?s profi(e an" persona( references shou(" !e accessi!(e to the !usiness (or hote() irrespecti-e of channe( i$e$ *hether the customer !oo%s on(ine) ca((s in or *a(%s into any (ocation shou(" not ma%e a "ifference to the ser-ice pro-i"e" !ase" on the persona( profi(e of the !usiness c(ient$ It is ena!(e" through# Information Processes &echno(ogy ,pp(ications , firm that *ants to imp(ement ' M must a(ign itMs !usiness processes cross-functiona((y in the !est possi!(e *ay to a((o* increase" customer focus *ith an aim to "e(i-er a""e" -a(ue to the customer$ To i#'le#ent CRM- t"e follo,ing $te'$ #*$t .e follo,ed( O 3e-e(op a ' M frame*or% O ,(ign current !usiness processes O 3esign ne* cross-functiona( !usiness processes (*here re+uire") O 3e-e(op 9unctiona( Specifications (c(ient-si"e ser-ices) O 3e-e(op &echnica( Specifications
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O Match &echnica( Specifications to a-ai(a!(e techno(ogy (Systems) soft*are) etc) O Pro"uct 'onfiguration O 3ata Migration an" Integration O Staff &raining %e! 4*e$tion$ in t"e fi+e CRM 'roce$$e$ Proce$$ 0( Strateg! &e+elo'#ent Proce$$ :here *e are an" *hat "o *e *ant to achie-e> :ho are the customers that *e *ant an" ho* shou(" *e segment them> Proce$$ 5( 6al*e Creation Proce$$ 1o* shou(" *e "e(i-er -a(ue to our customers> 1o* shou(" *e ma.imi;e the (ifetime -a(ue of the customers *e *ant> Proce$$ 7( T"e M*lti)C"annel Integration Proce$$ :hat are the !est *ays for us to get to customers an" for customers to get to us> :hat "oes the an outstan"ing customer e.perience) "e(i-era!(e at an affor"a!(e cost) (oo% Proce$$ 8( Infor#ation Manage#ent Proce$$ 1o* shou(" *e organise information on customers> 1o* can *e Nrep(icate? the min"Pnee"s of the customer> Proce$$ 9( Perfor#ance A$$e$$#ent Proce$$ 1o* can *e create increase" profits an" shareho("er -a(ue>
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1o* shou(" *e measure our resu(ts) set stan"ar"s an" impro-e our performance>
C*$to#er Seg#entation( 9or ' M to !e effecti-e) the organi;ation?s customer !ase must !e stratifie" into segments !ase" on commona(ities amongst groups? of in"i-i"ua(s an" customers$ &his a(so re+uires the organi;ation to ha-e strategies to target conso(i"ate" customer segments$ Red*ced Co$t of Ser+ice( a customer re(ationship strategy shou(" re"uce the cost of ser-ice for !oth the organi;ation an" it?s customers an" increase satisfaction (e-e(s$ Ser+ice a$ a differentiator( &he more competiti-e a mar%et !ecomes the more a !usiness *i(( nee" to re(y on its superior pro"uct +ua(ity an" +ua(ity of ser-ice to "ifferentiate itse(f from other !usinesses an" pro-i"ers$ Tie)in3$ o+er ti#e( &he greater the effort a customer spen"s on a re(ationship o-er time) the greater the customer?s sta%e in he(ping to ensure that the re(ationship *or%s an" the more con-enient an" (oya( the customer !ecomes$
Pitfall$ to a+oid(
Many ' M programs fai( for t*o reasons# Lack of $*''orti+e .*$ine$$ 'roce$$e$( Because !usiness processes an" organi;ationa( goa(s are not part of a strategic ' M p(an tie" to organi;ationa( goa(s an" o!jecti-es$ Lack of an enter'ri$e 'er$'ecti+e( 9or e(ationship Mar%eting to !e effecti-e) it re+uires that the organi;ation creates a seam(ess enterprise -ie*$ , (ot of ' M programs fai( !ecause they are assem!(e" *ith "isparate
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components that arenMt "esigne" to *or% together as part of a comp(ete ' M system "esigne" to meet organi;ationa( o!jecti-es$
ANALYSIS
RELATIONSHIP MARKETING
PRIVACY ISSUES
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METRICS
CUSTOMER SERVICE
CUSTOMIZATION
REWAR S PROGRAMS
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contact are inc(u"e") an" a(( users of the system see the same -ie* of the customer (re"uces confusion)$ 1e(p to i"entify potentia( pro!(ems +uic%(y) !efore they occur Pro-i"e a user-frien"(y mechanism for registering customer comp(aints (comp(aints that are not registere" *ith the company cannot !e reso(-e") an" are a major source of customer "issatisfaction)$ Pro-i"e a fast mechanism for han"(ing pro!(ems an" comp(aints (comp(aints that are reso(-e" +uic%(y can increase customer satisfaction)$ Pro-i"e a fast mechanism for correcting ser-ice "eficiencies (correct the pro!(em !efore other customers e.perience the same "issatisfaction)$ Qse internet coo%ies to trac% customer interests an" persona(i;e pro"uct offerings accor"ing(y Qse the Internet to engage in co((a!orati-e customi;ation or rea(-time customi;ation Pro-i"e a fast mechanism for managing an" sche"u(ing maintenance) repair) an" ongoing support (impro-e efficiency an" effecti-eness) &he ' M program can !e integrate" into other cross-functiona( systems an" there!y pro-i"e accounting an" pro"uction information to customers *hen they *ant it$ &ifferentiating Offering$ 0o* -a(ue customer re+uiring high -a(ue customer offerings$ 0o* -a(ue customer *ith potentia( to !ecome high -a(ue in near future$ 1igh -a(ue customer re+uiring high -a(ue ser-ice$ 1igh -a(ue customer re+uiring (o* -a(ue ser-ice$
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High
L"% value cu !"#e$ %h" $e&ui$e high level "' e$vice #u ! ei!he$ +u$cha e !he highe$ level "' e$vice "$ -ec"#e "u$ c"#+e!i!"$ l"% value.high c" ! cu !"#e$
High value cu !"#e$ %h" $e&ui$e a high level "' e$vice a$e #ai(!ai(e) %i!h"u! e*+a()i(g !he c" !l, "''e$i(g !" !he e(!i$e cu !"#e$ +"+ula!i"(
Service Require
Low
Low
High
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%ee'ing E;i$ting C*$to#er$ 5ra"ing customers from -ery satisfie" to -ery "isappointe" shou(" he(p the organi;ation in impro-ing its customer satisfaction (e-e(s an" scores$ ,s the satisfaction (e-e( for each customer impro-es) so sha(( the customer retention *ith the organi;ation$ Ma;i#i<ing Life ti#e +al*e 2.p(oit up-se((ing an" cross-se((ing potentia($ By i"entifying (ife stage an" (ife e-ent trigger points !y customer) mar%eters can ma.imi;e share of purchase potentia(. &hus the sing(e a"u(ts sha(( re+uire a ne* car stereo an" as he gro*s into a marrie" coup(e his nee"s gro* into app(iances$ Increa$e Lo!alt! 0oya( customers are more profita!(e$ ,ny company *i(( (i%e its min"share status to impro-e from !eing a suspect to !eing an a"-ocate$ 'ompany has to in-est in terms of its pro"uct an" ser-ice offerings to its customers$ It has to inno-ate an" meet the -ery nee"s of its c(ients customers so that they remain as a"-ocates on the (oya(ty cur-e$ eferra( sa(es in-aria!(y are (o* cost high margin sa(es$ O Mechanism to e-a(uate Potentia( =BMs$ O &o "e-e(op integrate" 3ata!ase$ O ,ssessing the nee" of Potentia( =BMs$ O :ays to meet those nee"s$ O I"entify the softer e(ements$ O 3e-ising a *ay to etain an" gro* *ith those =BMs$ O Mo-ing further ahea" Satisfaction 3e(ightment 0BR,0I&R O &o "e-e(op Strategy an" action p(an on +uarter & annua( !asis$ O &o gain %no*(e"ge a!out consumer !eha-iour O &o %no*) ho* to maintain re(ationship *ith customer> O &o %no*) the nee"s ana(ysis of customer O &o un"erstan") *ith the he(p of fee"!ac% form that *hy customers are not tra"ing *ith ,nge( O &o %no*) the customer perception a!out company?s pro"ucts & ser-ices O &o %no*) the grie-ances among the customers a!out pro"ucts & ser-ices
19
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the conte.t of !usiness-to-!usiness mar%ets) in"i-i"ua( mar%eting has !een in p(ace of +uite sometime$ =no*n as =ey ,ccount Management Program) here mar%eters appoint customer teams to hus!an" the company resources accor"ing to in"i-i"ua( customer nee"s$ Contin*it! Marketing Progra#$ &a%e the shape of mem!ership an" (oya(ty car" programs *here customers are often re*ar"e" for their mem!er an" (oya(ty re(ationships *ith the mar%eters$ &he !asic premise of continuity mar%eting programs is to retain customers an" increase (oya(ty through (ong-term specia( ser-ices that has a potentia( to increase mutua( -a(ue through (earning a!out each other$ Partnering Progra#$ &he thir" type of ' M programs is partnering re(ationships !et*een customer an" mar%eters to ser-e en" user nee"s$ In the mass mar%ets) t*o types of partnering programs are most common# 'o-!ran"ing an" affinity partnering$ Missing process of ' M &ra"itiona((y customer re(ationship management (' M) re-o(-es aroun" the three functions of se((ing) mar%eting an" support$ <arious process mo"e(s ha-e !een !ui(t aroun" ho* these functions are integrate" an" operate" in a customer oriente" enterprise$ &here is ho*e-er a fourth critica( function that is (ac%ing in most ' M mo"e(s$ &he fourth function that often is the source of a competiti-e e"ge is that of inno-ation$ 'ompanies must continua((y rein-ent themse(-es to "e(i-er an impro-e" an" often a tota((y ne* -a(ue offering to their customer !ase$ ' M must pro-i"e the customer inte((igence that fee"s information !ac% into the enterprise?s %no*(e"ge management processes *here it can trigger ne* inno-ation processes$ :hen ' M is integrate" into the inno-ation process) significant -a(ue can !e "eri-e" from faster time to mar%et cyc(e times an" *ith ne* processes an" ser-ices$ Mar%eting automation must ensure that the inno-ation processes are actua((y mar%et "ri-en$ , mar%et "ri-en inno-ation process must inc(u"e !oth strategies that are focuse" on satisfying customer re+uirements as *e(( as strategies focuse" at re"efining customer re+uirements$ Sa(es automation shou(" !e integrate" *ith the inno-ation process !y ensuring that a(( sa(es channe(s are prepare" an" rea"y
21
to ta%e ne* processes an" ser-ices to mar%et !efore competiti-e forces can react$ 'ustomer ser-ice automation must !e "esigne" to empo*er the customer *ith the option of assisting *ith the "esign of the -a(ue offering$ e"efining ' M aroun" inno-ation) sa(es) mar%eting an" ser-ice can i"entify ne* competiti-e opportunities for an enterprise$ &he remaining +uestion is *hether companies are prepare" to ta%e the initiati-e an" e.pan" the "efinition of customer re(ationship management to inc(u"e the process of inno-ation$ &he pressure to "e(i-er resu(ts *ithin the tra"itiona( "efinition of ' M a(rea"y o-er*he(ms companies$ &he "ia(og must start rather ear(ier than (ater !ecause the competiti-e *in"o* of tra"itiona( ' M is "ecreasing an" customer "eman"s for a more inno-ati-e an" responsi-e enterprise *i(( increase
Arc"itect*re of CRM
&here are three parts of app(ication architecture of ' M# Bperationa( - automation to the !asic !usiness processes (mar%eting) sa(es) ser-ice) ,na(ytica( - support to ana(y;e customer !eha-ior) imp(ements !usiness inte((igence a(i%e techno(ogy 'o((a!orati-e - ensures the contact *ith customers (phone) emai() fa.) *e!) SMS) post) in person) O'erational CRM Bperationa( ' M means supporting the Sfront officeS !usiness processes) *hich inc(u"e customer contact (sa(es) mar%eting an" ser-ice)$ &as%s resu(ting from these processes are for*ar"e" to resources responsi!(e for them) as *e(( as the information necessary for carrying out the tas%s an" interfaces to !ac%-en" app(ications are !eing pro-i"e" an" acti-ities *ith customers are !eing "ocumente" for further reference$ Bperationa( ' M pro-i"es the fo((o*ing !enefits# 3e(i-ers persona(i;e" an" efficient mar%eting) sa(es) an" ser-ice through mu(ti-channe( co((a!oration 2na!(es a DL0-"egree -ie* of your customer *hi(e you are interacting *ith them
22
Sa(es peop(e an" ser-ice engineers can access comp(ete history of a(( customer interaction *ith your company) regar"(ess of the touch point$ &he operationa( part of ' M typica((y in-o(-es three genera( areas of !usiness#
an" a(so %eeping a(( information of a customer in one p(ace) a company aims to ma%e cost sa-ings) an" a(so encourage ne* customers$ ' M so(utions can a(so !e use" to a((o* customers to perform their o*n ser-ice -ia a -ariety of communication channe(s$ 9or e.amp(e) you might !e a!(e to chec% your !an% !a(ance -ia your :,P phone *ithout e-er ha-ing to ta(% to a person) sa-ing money for the company) an" sa-ing your time$ Anal!tical CRM In ana(ytica( ' M) "ata gathere" *ithin operationa( ' M an"/or other sources are ana(y;e" to segment customers or to i"entify potentia( to enhance c(ient re(ationship$ 'ustomer ana(ysis typica((y can (ea" to targete" campaigns to increase share of customerMs *a((et$ 2.amp(es of 'ampaigns "irecte" to*ar"s customers are# ,c+uisition# 'ross-se(() up-se(( etention# etaining customers *ho (ea-e "ue to maturity or attrition$ Information# Pro-i"ing time(y an" regu(ar information to customers$ O Mo"ification# ,(tering "etai(s of the transactiona( nature of the customersM re(ationship$ ,na(ysis typica((y co-ers !ut is not (imite" to# O 3ecision support# 3ash!oar"s) reporting) metrics) performance etc$ O Pre"icti-e mo"e(ing of customer attri!utes O Strategy an" esearch ,na(ysis of 'ustomer "ata may re(ate to one or more of the fo((o*ing ana(yses# 'ontact channe( optimi;ation 'ontact Bptimi;ation 'ustomer ,c+uisition / eacti-ation / etention 'ustomer Segmentation 'ustomer Satisfaction Measurement / Increase Sa(es 'o-erage Bptimi;ation 9rau" 3etection an" ana(ysis 9inancia( 9orecasts Pricing Bptimi;ation Pro"uct 3e-e(opment Program 2-a(uation is% ,ssessment an" Management
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3ata co((ection an" ana(ysis is -ie*e" as a continuing an" iterati-e process$ I"ea((y) !usiness "ecisions are refine" o-er time) !ase" on fee"!ac% from ear(ier ana(ysis an" "ecisions$ &herefore) most successfu( ana(ytica( ' M projects ta%e a"-antage of a "ata *arehouse to pro-i"e suita!(e "ata$ Business Inte((igence is a re(ate" "iscip(ine offering some more functiona(ity as separate app(ication soft*are$ Colla.orati+e CRM 'o((a!orati-e ' M faci(itates interactions *ith customers through a(( channe(s (persona() (etter) fa.) phone) *e!) e-mai() an" supports coor"ination of emp(oyee teams an" channe(s$ It is a so(ution that !rings peop(e) processes an" "ata together so companies can !etter ser-e an" retain their customers$ &he "ata/acti-ities can !e structure") unstructure") con-ersationa( an"/or transactiona( in nature$ 'o((a!orati-e ' M pro-i"es the fo((o*ing !enefits# 2na!(e efficient pro"ucti-e customer interactions across a(( communications channe(s 2na!(es *e! co((a!oration to re"uce customer ser-ice costs O Integrates ca(( centers ena!(ing mu(ti-channe( persona( customer interaction O Integrates -ie* of the customer *hi(e interaction at the transaction (e-e(
Literat*re Re+ie,
Co#'an! Profile
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Angel Broking Li#ited is one of the (ea"ing an" professiona((y manage" stoc% !ro%ing firm in-o(-e" in +ua(ity ser-ices an" research$ ,nge( Bro%ing 0imite" is a corporate mem!er of &he Stoc% 2.change) Mum!ai$ &he mem!ership of the company *ith &he Stoc% 2.change Mum!ai *as origina((y in the name of Mu%esh $ 5an"hi) *hich *as e-entua((y turne" into a corporate mem!ership in the name of ,nge( Bro%ing 0imite"$ ,nge( Bro%ing 0imite" is manage" !y Mr$ 3inesh &ha%%ar an" he is *e(( supporte" !y Mr$ Mu%esh 5an"hi) a fifteen years -eteran in the mar%et$ &he group is *e(( supporte" !y a professiona( an" +ua(ifie" research team an" efficient operations an" !ac% office team) *hich comprises of high(y "e"icate" an" +ua(ifie" in"i-i"ua(s$ ,nge( has an in-house) state of art research "epartment$ ,nge( !e(ie-es in reaching out to the customer at the farthest en" rather than !y reaching out to them$ &he company in its 2n"ea-our to gi-e its c(ient the !est has opene" up se-era( !ranches a(( o-er Mum!ai) *hich are efficient(y integrate" *ith the 1ea" Bffice$ ,nge( Bro%ing 0imite" is primari(y into retai( stoc% !ro%ing) *ith a customer !ase of retai( in-estors) *hich has !een increasing at a compoun"e" gro*th rate of F00T e-ery year$ &he company has huge net*or% su!-!ro%ers in Mum!ai an" other p(aces outsi"e Mum!ai) registere" *ith S2BI) *ho act as channe( partners for the company$ &he company present(y has the tota( staff strength of aroun" FG0 emp(oyees *ho are sprea" accor"ing(y across the hea" office an" a(( the !ranches$ ,nge( has empo*ere" its physica( presence throughout In"ia through -arious strategies *hich it has !een a"opting efficient(y an" effecti-e(y o-er a perio" of time) (i%e opening up of !ranches at -arious p(aces) tie-ups *ith -arious agencies an" sa(es agents) !uy-outs of sma((er regiona( outfits an" appointment of su!-!ro%ers an" franchisees$ Moreo-er) ,nge( Bro%ing 0t"$ has !een tapping an" inc(u"ing high net-*orth an" se(f-emp(oye" in"i-i"ua(s to its -ast array of c(ients$ ,nge( has a(*ays stri-e" in the "irection of "e(i-ering u(timate c(ient satisfaction an" "e-e(oping stronger !on"s *ith its customers an" chose partners$ ,nge( has a -ision to intro"uce ne* an" inno-ati-e pro"ucts an" ser-ices regu(ar(y$ Moreo-er ,nge( has !een one among the pioneers to
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intro"uce the (atest techno(ogica( inno-ations an" integrate it efficient(y *ithin its !usiness$ ,nge( Bro%ing 0t" tryst *ith e.ce((ence in customer re(ations !egan in F9I@$ &o"ay) ,nge( has emerge" as one of the most respecte" Stoc%Bro%ing an" :ea(th Management 'ompanies in In"ia$ :ith its uni+ue retai(-focuse" stoc% tra"ing !usiness mo"e() ,nge( is committe" to pro-i"ing N ea( <a(ue for Money? to a(( its c(ients$ &he ,nge( 5roup is a mem!er of the Bom!ay Stoc% 2.change (BS2)) 4ationa( Stoc% 2.change (4S2) an" the t*o (ea"ing 'ommo"ity 2.changes in the country# 4'32K & M'K$ ,nge( is a(so registere" as a 3epository Participant *ith '3S0
,nge(?s Business
2+uity &ra"ing 'ommo"ities Portfo(io Management Ser-ices Mutua( 9un"s 0ife Insurance Persona( 0oans IPB 3epository Ser-ices In-estment ,"-isory
,nge(?s Presence
4ation-*i"e net*or% of 2F egiona( 1u!s Presence in F2E cities B-er LIF0 Su!-Bro%ers & Business ,ssociates More than G$9 (a%h '(ients
,nge( 5roup
,nge( Bro%ing 0t"$ ,nge( 'apita( & 3e!t Mar%et 0t"$ ,nge( 'ommo"ities Bro%ing 0t"$ ,nge( Securities 0t"$
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Boar" of 3irectors# Mr. &ine$" T"akkar =o*nder C"air#an > Managing &irector
&he ,nge( 5roup of 'ompanies *as !rought to (ife !y Mr$ 3inesh &ha%%ar$ 1e -enture" into stoc% tra"ing *ith an intention to raise capita( for his o*n in"epen"ent enterprise$ 1o*e-er) he recogni;e" the opportunity offere" !y the stoc% mar%et to ser-e in"i-i"ua( in-estors$ &hus In"ia?s first retai(-focuse" stoc%-!ro%ing house *as esta!(ishe" in F9I@$ Qn"er his (ea"ership) ,nge( !ecame the first !ro%ing house to em!race ne* techno(ogy for faster) more effecti-e an" affor"a!(e ser-ices to retai( in-estors$ Mr$ &ha%%ar is -a(ue" for his un"erstan"ing of the economy an" the stoc%-mar%et$ &he print an" e(ectronic me"ia often see% his -ie*s on the mar%et tren" as *e(( as in-estment strategies$ Mr. Lalit T"akkar &irector ? Re$earc"
Mr$ 0a(it &ha%%ar is the moti-ating force !ehin" ,nge(?s high(y acc(aime" esearch team$ 1e?s !een a part of the senior management team since the ,nge( 5roup?s inception$ 1is technica( an" fun"amenta( out(oo% has pro-i"e" impetus to ,nge(?s mar%et research team$ esearch-!ase" & persona(i;e" a"-isory ser-ices are ,nge(?s forte) an" Mr$ 0a(it &ha%%ar has un"ou!te"(y !een the !rain !ehin" it$
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:hen it comes to ana(y;ing the mar%et) Mr$ 0a(it &ha%%ar is tru(y a genius$ 1is han"s-on e.perience an" fun"amenta( %no*(e"ge of the mar%et can pre"ict the mar%et tren" ear(y$ 1is -ie*s on the mar%et tren" are often +uote" in the print an" e(ectronic me"ia$
, chartere" ,ccountant !y +ua(ification) Mr$ ,mit Majum"ar is a %ey mem!er of ,nge(?s strategic "ecision-ma%ing process$ 1e has !een *ith the group since ,ugust 200E$ 1e has han"(e" se-era( functions of the group (i%e finance an" operations) to name a fe*$ 1e has rich e.perience in finance) in-estment !an%ing) treasury) consu(tancy an" a"-isory ser-ices$ Mr$ Majum"ar has (e" many successfu( initiati-es for the group$ Before joining the ,nge( 5roup) Mr$ Majum"ar has !een associate" *ith a!o In"ia 9inance) ,m!it 'orporate 9inance an" 2rnst & Roung$ Mr. Ra:i+ P"adke E;ec*ti+e &irector ? HR > Cor'. Co##*nication$
Mr$ aji- Pha"%e has acti-e(y contri!ute" to the 5roup?s gro*th o-er the (ast four years$ 1o("ing a major in 9inance) Mr$ aji- Pha"%e is a strategic thin%er *ith e.pertise in the fie(" of corporate p(anning) internationa( mar%eting) financia( ser-ices) !ran"-!ui("ing) 1 3 an" +ua(ity management$ :ith o-er D2 years of e.perience) Mr$ Pha"%e has successfu((y (e"
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SBQs an" inancia( companies from concept to commissioning$ 1is career hori;on spans Moti(a( Bs*a( Securities) &imes 5uaranty 9inancia(s) 4agarjuna Securities an" &ata 2.ports 0t"$ 1e is a(so a *e((-%no*n spea%er in the 1 an" !usiness "e-e(opment circuit an" his -ie*s are feature" on -arious e(ectronic me"ia as *e(($ Mr. 6ina! Agra,al E;ec*ti+e &irector ? E4*it! Broking
Mr$ <inay ,gra*a( (ea"s the 2+uity Bro%ing !usiness at ,nge() *hich comprises Business 3e-e(opment) Bperations) Pro"uct 3e-e(opment an" 2-!ro%ing initiati-e$ 1e is acti-e(y in-o(-e" in e.p(oring ne* *ays to a"opt techno(ogy for !usiness enhancement$ , 'hartere" ,ccountant !y +ua(ification) Mr$ ,gra*a( !egan his career *ith the ,nge( 5roup as 9inance an" Bperations 'onsu(tant) an" since then he?s +uic%(y c(im!e" up the corporate (a""er$ Mr. Nik"il &a;ini E;ec*ti+e &irector ) Sale$ and Marketing
:ith an MB, in finance) Mr$ 4i%hi( 3a.ini has !een instrumenta( in intro"ucing the concept of professiona( mar%eting of !ro%ing ser-ices at ,nge($ 1is area of focus is Business 3e-e(opment) is% Management an" Bperations$ Mr$ 3a.ini has immense e.perience in the mar%eting of financia( pro"ucts an" ser-ices$ 1e has !een associate" *ith 139' Ban% 0t"$ in the past$
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, mar%eting professiona( an" a British 'he-ening scho(ar from the 0on"on Schoo( of 2conomics) Mr$ 1itungshu 3e!nath (ea"s the 3istri!ution an" :ea(th Management !usiness at the ,nge( 5roup$ It inc(u"es the "istri!ution of Insurance) mutua( fun"s) IPBs) persona( (oans an" other *ea(th management pro"ucts$ Mr$ 3e!nath has o-er FI years of in"ustry e.perience$ 1e has !een associate" *ith &imes 5uaranty 9inancia( 0t"$) 9ortress 9inancia( Ser-ices 0t"$) ,((iance 'apita( ,sset Management an" 139' ,sset Management 0t"$ in the past$
Mr$ Mu"it =u(shreshtha hea"s the a"-ance ana(ytics an" strategic !usiness inte((igence "i-ision at ,nge($ :ith a Bache(or?s "egree in 2ngineering an" Ph3 in 2conomics) Mr$ Mu"it =u(shreshtha has more than F2 years e.perience in the fie(" of strategy an" !usiness consu(ting$ 1e has !een associate" *ith repute" consu(ting firms (i%e 3e(oitte 'onsu(ting In"ia) 2rnst an" Roung) ,rthur ,n"ersen an" :4S 5(o!a($ 1e has a"-ise" se-era( !ig c(ients in the Q$S$ an" Q$=$ 1e is a(so a %no*n spea%er at pu!(ic seminars an" conferences organise" !y 'II) 4,SS'BM) In"ian Schoo( of Business an" II&$
31
Mr$ Syam !rings *ith him o-er FI years of e.perience in the fie(" of &ransaction Ban%ing) :ho(esa(e Ban%ing) &reasury Ban%ing) 'onsumer Ban%ing an" 'BS$ 1e starte" his career *ith ,4U 5rin"(ays Ban% an" he *as a(so associate" *ith Stan"ar" 'hartere" Ban% in In"ia as 3irector &ransactiona( Ban%ing$ Mr$ Syam fo((o*e" up his 2ngineering "egree *ith an MB,$ 1e has a(so atten"e" Ban%ing & &echno(ogy seminars organise" !y S'B Singapore) BS2 In"ia & 2uro 9inance$ Mr. %etan S"a" A$$ociate &irector ) Infor#ation Tec"nolog!
I& is a strategic function at ,nge($ ,n" Mr$ =etan Shah is in-o(-e" in the "esigning of ,nge(?s I& po(icies an" Strategies$ Mr$ Shah (ea"s a(( I&re(ate" acti-ities from p(anning an" !u"geting to imp(ementation an" maintenance$ Mr$ Shah has o-er FI years of in"ustry e.perience$ 1e has !een in-o(-e" in -arious aspects of Business Bperations in his pre-ious assignments$ M$. Pink! %ot"ari A$$ociate &irector ) Sale$ And Marketing
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Ms$ Pin%y =othari is responsi!(e for "e-e(opment an" e.pansion of the ,nge( 5roup?s !usiness in Southern In"ia$ She starte" her career at ,nge( as Business 3e-e(opment 2.ecuti-e$ She *as then appointe" the hea" of Surat Branch an" the South 5ujarat region) !efore assuming the ro(e of ,ssociate 3irector$ , +ua(ifie" 'ompany Secretary an" an MB, in 9inance) Ms$ =othari has -ast e.perience in !usiness "e-e(opment in the financia( ser-ices in"ustry$ Mr. Na+een Mat"*r A$$ociate &irector ? Co##oditie$ B*$ine$$
, '9, of F99@) Mr$ Mathur ho("s a Post 5ra"uation "egree in 9inancia( Management an" Business 9inance$ 1e !rings *ith him o-er FE years of e.perience in the financia( mar%ets 1e ha" !een associate" *ith e(igare 'ommo"ities) =ar-y 'onsu(tants an" *ith B0B 0t" in the past$ 1e has !een in-o(-e" in se-era( management acti-ities) treasury operations) corporate an" strategic p(anning) research acti-ities in 9utures an" Bptions mar%ets in his past assignments$ Mr$ Mathur is a regu(ar spea%er on a(( the prominent financia( ne*s channe(s$
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E-Broking: ,nge( offers se-era( user-frien"(y ser-ices to customers so that they can manage their stoc% portfo(io$ Inc(u"ing) on(ine capa!i(ities (in%e" to an information "ata!ase to he(p customers in-est) confi"ent(y$ Bur e-!ro%ing ser-ices are specia((y "esigne" for the net-sa--y tra"ers an" in-estors *ho prefer operating from their home or office) through the internet$ &here are t*o types of soft*are$ 0. Bro,$er)Ba$ed ,nge( In-estor ,nge( &ra"e 5. A''lication)Ba$ed ,nge( 3iet ,nge( ,ny*here USP3$ of Angel E).roking Mu(tip(e 2.changes on a sing(e screen- BS2) 4S2-9&B) M'K) 4'32K 1ot %eys simi(ar to !ro%er?s termina( Streaming +uotes Pro"ucts/Soft*are/Bac% office training for a(( 2-!ro%ing c(ients In-"epth research & technica( chart) intra-"ay ca((s 2E.@ Bac%-office <ie*ing (e"ger) Bi((s) 'ontracts) Sau"a summary) Bpen Position) 1o("ings) 3P &ransactions) ,uction 3etai(s$
34
,uto pay-in of shares & Bn(ine Securities Pay-But Instant transfer of fun" & Bn(ine 9un"s pay-out re+uest 1igh(y secure an" confi"entia(
PRODUCT BOUQUET
a) Angel O!$ter 'hief In-estment Bfficer Mr$ ajen Shah Bottom up concentrate" portfo(io of Mi" 'ap & Sma(( 'ap 'ompanies *ith emphasis on <a(ue In-esting$ +nvestor Profile, &he scheme *ou(" !e suite" for in-estors *ith me"ium to high ris% appetite ha-ing (ong term perspecti-e 'ees and harges 2T ,sset Management 'harges 0$G0T !ro%erage on transactions .)Angel Bl*e)c"i' 9un" Manager Mr$ Phani Se%har 3i-ersifie" 2+uity portfo(io of 0arge cap & Mi" 'ap 'ompanies$
35
+nvestor Profile, &he scheme *ou(" !e suite" for in-estors *ith me"ium to (o* ris% appetite) ha-ing (ong term perspecti-e$ 'ees and harges 2T ,sset Management 9ees 0$G0T Bro%erage on transactions Angel E4*it! &eri+ati+e$ =*nd 9un" Manager Mr$ Si""arth Bhamre Bottom-Qp concentrate" portfo(io *ith 2+uities & 3eri-ati-es) an" emphasis on 1e"ging !y using -o(ati(ity in the Mar%ets$ +nvestor Profile, &he scheme *ou(" !e suite" for in-estors *ith (o* to me"ium ris% appetite) ha-ing (ong term perspecti-e$ Suita!(e for 14I '(ients an" 'orporate *ho *ant to par% money for consistent eturn from the mar%et e-en if mar%et remaine" f(at$ 'ees and harges 2T ,sset Management 'harges 0$F0T on 3e(i-ery an" s$G0 f(at on options) 0$0FT on futures Angel Gro,t" 9un" Manager Mr$ Phani Se%har 3i-ersifie" 2+uity portfo(io of 0arge cap & Mi" 'ap 'ompanies *ith emphasis on gro*th In-estment$ +nvestor Profile, &he scheme *ou(" !e suite" for in-estors *ith mo"erate ris% appetite$ ecommen"e" in-estment hori;on is FG to FI months$ 'ees and harges, 2T ,sset Management 'harges 0$GT !ro%erage on transactions
36
PMS c"aracteri$tic$( ) Persona(i;e" Ser-ice Interaction *ith 9un" Manager egu(ar fee"!ac% an" reports Pro-acti-e management of fun"s 1o("ings not impacte" !y entry/e.it of !ig in-estors 'an remain (i+ui" for (ong perio"s 3iscip(ine" in-estment process Jua(ity in-estments 0imiting ris% 0o* portfo(io turno-er 9ocus on generating ,!so(ute returns rather than e(ati-e eturns
Angel -oldPRO&UCT ) =eat*re$ of Angel Gold , premium ser-ice for c(ients *ho nee"s professiona( gui"ance on (ong term in-estments Minimum fun"s or portfo(io of s$F 0a%h an" ma.imum of s$E 0a%hs *i(( !e e(igi!(e for ,nge( 5o("$$ Bro%erage of 0$G0T-0$@GT for c(ients$ G0T sharing of !ro%erage in case of Su!-!ro%er?s c(ients$ 4o ,M') 4o 2ntry/2.it (oa" an" 4o profit sharing Shares can !e %ept in ,nge( poo( or can !e transferre" to the respecti-e 3P accounts Intimation regar"ing transaction *i(( !e gi-en to c(ients !y e-ening of the "ay of transaction 4o 0oc%-in perio"$ Profits can !e re"eeme" or re-in-esting !ase" on c(ient?s *ish 2.isting c(ient account can !e use" for ,nge( 5B03$ '(ients can "o there o*n transactions in the same account as *e(($ esearch 3irector Mr$ 0a(it &ha%%ar a(ong *ith F2 senior ana(ysts *i(( ta%e in-estment "ecisions In-estment *i(( !e "one for a (onger time hori;on$ (F2-FI Months) Bro*ser !ase" BB soft*are for c(ients an" !ranches
37
Month(y 4e*s(etter *i(( !e re(ease" from ,nge( 5B03 "es% Perio"ic meetings *i(( !e he(" in the !ranches POSITIONING ,nge( 5B03 is positione" as an e+uity in-estment option for a(( those in+e$tor$ *ho aims for rea(istic return from e+uity as an asset c(ass on a (ong term perspecti-e$ It is for the in-estors *ho *ishes to see% professiona( a"-ice for therein-estments$ Uni4*e $elling Pre'o$ition AUSPB , strong team of FF sector specific ana(ysts hea"e" !y esearch "irector gui"ing the in-estments 4o 2ntry/2.it (oa") 4o profit sharing) 4o Management fees , corpus (imit as (o* as s$F 0a%h$ , portfo(io of gro*th stoc%s an" not mar%et capita(i;ation !ias$ 9(e.i!i(ity of rein-esting) re"eeming an" (i+ui"ating the portfo(io , (o* cost so(ution for in-esting$ Prod*ct Seg#ent ,nge( 5B03 is for the peop(e *ho fa(( in mi""(e c(ass 8 higher mi""(e c(ass section of the society Peop(e *ho are not ris% a-erse an" can un"erstan" the return !enefits -is-V--is ca(cu(ate" ris% ta%en Peop(e *ho are ne* entrant to the e+uity mar%ets) norma((y coming through the Mutua( 9un" route$ Target C*$to#er$ Roung professiona(s earning sa(aries aroun" s$D 0acs to s$L 0acs *ith one or t*o years e.perience Mi""(e age" professiona(s consi"ering tra"itiona( *ays of in-esting i$e$ 93s) PP9) go(") !on"s) etc$
38
Sma(( sca(e !usinessmen *ho are not ris% a-erse an" *i(( un"erstan" the importance of reasona!(e returns etire" peop(e *ho ha-e ta%en hefty < S or has sa-ings of *hich 202GT can !e in-este" in e+uities
*argin 'unding and prepaid #ro)erageMargin 9un"ingCMargin 9un"ingD a((o* you to ta%e higher e.posure on the fun"s as *e(( as un(oc% the -a(ue of your e.isting portfo(io & ta%e a"-antage of in-estment opportunities in the mar%et *ithout the in-o(-ement of fresh fun"s$ Bne can use the shares in his current portfo(io to ma%e fresh purchases in the mar%et$ If uti(i;e" pru"ent(y) this pro"uct can he(p *nlock t"e +al*e of Sec*ritie$ e-en "uring "epresse" Stoc% Mar%et con"itions an" pro-i"e customers *ith the much-nee"e" (i+ui"ity "uring pressing times$ Ad+antage$(
Pro-i"e instant (i+ui"ity *ithout ha-ing to se(( your Securities$ ,((o* you to gra! in-estment opportunities instant(y *ithout any nee" to pay first$ 0e-erage your fun"s a-ai(a!(e for in-estments$ Benefits (i%e !onuses an" "i-i"en"s continue to accrue to the !orro*er$ ,ny appreciation in the -a(ue of the Securities gi-en as margin *ou(" automatica((y a((o* enhancement in "ra*ing po*er$ Interest ca(cu(ate" on the amount uti(i;e" & the time for *hich it is uti(i;e"$
Pre-Pai" Bro%erage
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Pre-pai" !ro%erage is one of the !est schemes for customers to ta%e the a"-antages of (ess !ro%erage$ 3ifferent pre-pai" recharge are a-ai(a!(e *ith "ifferent -a(i"ity$ Some characteristics of pre-pai" !ro%erage are as fo((o*s#
Uero account opening charges ,ttracti-e Bro%erage ate 9ree 3P ,M' for F year ,ssure" gifts *orth thousan"s *ith e-ery account$ 2asy & 9ast echarge 9ree 9inancia( In-estment ,pp(ication *ith e-ery account
&he mar%ets en"e" Mon"ay margina((y in the green) after opening *ea% "ue to concerns a!out S*ine f(u$ &he In"ices *ere *ea% at the outset of the &ues"ay en"ing the "ay in re"$ Mar%ets surge" on :e"nes"ay on positi-e g(o!a( cues an" short co-ering in ,pri( 2009 "eri-ati-es contracts$ &he mar%ets remaine" c(ose" !oth on &hurs"ay an" 9ri"ay$ &he mar%ets just en"e" the *ee% positi-e) *ith the Sense. gaining 0$@T an" the 4ifty c(osing margina((y (o*er !y 0$2T
=*nda#ental Anal!$i$
9un"amenta( ana(ysis is one of the most usefu( too(s that in-estors use *hen ma%ing "ecisions a!out *hich stoc%s they?re going to !uy$ It is a process of e.amining %ey ratios that sho* the current *orth of a stoc% an" the recent performance of a company$ 9un"amenta( ana(ysis is use" to "etermine the amount of money a company can ma%e an" the %in" of earnings an in-estor can e.pect$ 9uture earnings may !e su!ject to interpretation !ut goo" earning histories create confi"ence among in-estors$ &he stoc% prices may increase an" the "i-i"en"s may pay out$ Stoc% mar%et ana(ysts "etermine *hether a company is meeting its e.pecte" gro*th !y e.amining the earnings that are reporte" !y the company on a regu(ar !asis$ If the company "oesn?t meet its e.pecte" gro*th) the prices of its stoc%s usua((y e.perience a "o*nturn$ &here are a (ot of too(s that are use" to "etermine the earnings an" the -a(ue of a company on the stoc% mar%et$ Most of these too(s re(y on the financia( statements re(ease" !y the company$ 3etai(s a!out the -a(ue of a company *hich inc(u"e competiti-e a"-antages an" o*nership ratios !et*een the management an" the outsi"e in-estors can !e re-ea(e" through further fun"amenta( ana(yses$
=*nda#ental anal!$i$ i$ for t"e rational #an &o ma%e financia( forecasts &o con"uct a company stoc% -a(uation & pre"ict its pro!a!(e price e-o(ution &o ma%e a projection on its !usiness performance
41
&o e-a(uate its management an" ma%e interna( !usiness "ecisions &o ca(cu(ate its cre"it ris%
Tec"nical Anal!$i$
&he art an" science of e.amining stoc% chart "ata an" pre"icting future stoc% mar%et mo-ements is ca((e" technica( ana(ysis$ &his sty(e of ana(ysis is use" !y in-estors *ho are often concerne" a!out the nature an" the -a(ue of the companies *here they tra"e their stoc%s in$ &he ho("ings are usua((y short-term since the in-estors "rop the stoc%s once they reach their projecte" profit$ &he !e(ief that stoc% prices mo-e in pre"icta!(e patterns is the !asis for technica( ana(ysis$ &he factors that inf(uence the mo-ement of the price are suppose"(y ref(ecte" in the stoc% mar%et *ith great efficiency$ &hese factors inc(u"e company performance) economic status) an" natura( "isasters$ &he efficiency) *hen coup(e" *ith historica( tren"s) pro"uces mo-ements that can !e ana(y;e" an" app(ie" to the future mo-ements of the stoc% mar%et$ Because the fun"amenta( information a!out the potentia( gro*th of a company is not ta%en into account) technica( ana(ysis is not inten"e" for (ong-term in-estments$ &ra"es are entere" an" e.ite" at precise times so technica( ana(ysts nee" to spen" a (ot of time *atching the mo-ements of the stoc% mar%et$ In-estors can ta%e a"-antage of !oth ups*ings an" "o*ns*ings in price !y going either (ong or short$ In the e-ent that the mar%et "oesn?t mo-e as e.pecte") the (osses can !e (imite" !y stop-(oss or"ers$ 1un"re"s of stoc% patterns ha-e !een "e-e(ope" o-er time$ Most of these patterns re(y on the !asic concepts of 6support7 an" 6resistance$7 &he (e-e( *here "o*n*ar" prices are e.pecte" to rise from is ca((e" the support *hi(e the (e-e( *here the up*ar" prices are
42
e.pecte" to reach !efore fa((ing again is ca((e" the resistance$ Bnce they hit the support or the resistance (e-e(s) the prices ten" to !ounce$
4 I Ser-ice 3es% for persona(i;e" ,ssistance 3e"icate" Bff(ine 2+uity 3ea(ing 3es% Bn(ine 2+uity &ra"ing P(atform 4 I In-estment ,"-isory 3es% P,4 car" ,ssistance Support for Ban%ing & PIS ,ccount Portfo(io Management) Mutua( 9un") IBP Ser-ices
&raining, training program can ser-e a range of "i-erse purposes) an" organi;ations initiate training programs for many "ifferent reasons$ Bne of the strongest nee" of training is to respon" to cha((enges presente" !y ne* techno(ogy$ 'ustomer e(ationship Management training at ,nge( Bro%ing he(pe" us to meet the cha((enges in current mar%et scenario$ :e came to %no* a!out maintaining (ong (asting customer re(ationship$ :e *ere co-ere" !y Moti-ationa( speeches !y Boar" of "irectors) Pro"uct an" ser-ices) o(e p(ays) Brain storming) Scrip "esigning) Bac% office) 3ifferent "epartments at ,nge( an" the *ay they e.ecute their tas%s) esearch an" ,"-isory) :ea(th management ser-ices) <a(ue a""e" ser-ices an" hea(thy "iscussions ):hich are as fo((o*s in "etai(#
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Pro"ucti-ity 8 &raining he(ps in increasing the pro"ucti-ity of the emp(oyees that he(ps the organi;ation further to achie-e its (ong-term goa($ &eam spirit 8 &raining he(ps in incu(cating the sense of team *or%) team spirit) an" inter-team co((a!orations$ It he(ps in incu(cating the ;ea( to (earn *ithin the emp(oyees$
Brgani;ation 'u(ture 8 &raining he(ps to "e-e(op an" impro-e the organi;ationa( hea(th cu(ture an" effecti-eness$ It he(ps in creating the (earning cu(ture *ithin &he organi;ation$ Brgani;ation '(imate 8 &raining he(ps !ui("ing the positi-e perception an" fee(ing a!out the organi;ation$ &he emp(oyees get these fee(ings from
44
(ea"ers) su!or"inates) an" peers$ Jua(ity 8 &raining he(ps in impro-ing upon the +ua(ity of *or% an" *or%(ife$ 1ea(thy *or%-en-ironment 8 &raining he(ps in creating the hea(thy *or%ing en-ironment$ It he(ps to !ui(" goo" emp(oyee) re(ationship so that in"i-i"ua( goa(s a(igns *ith organi;ationa( goa($ 1ea(th an" Safety 8 &raining he(ps in impro-ing the hea(th an" safety of the organi;ation thus pre-enting o!so(escence$ Mora(e 8 &raining he(ps in impro-ing the mora(e of the *or% force$ Image 8 &raining he(ps in creating a !etter corporate image$ Profita!i(ity 8 &raining (ea"s to impro-e" profita!i(ity an" more positi-e attitu"es to*ar"s profit orientation$ &raining ai"s in organi;ationa( "e-e(opment i$e$ Brgani;ation gets more effecti-e "ecision ma%ing an" pro!(em so(-ing$ It he(ps in un"erstan"ing an" carrying out organisationa( po(icies &raining he(ps in "e-e(oping (ea"ership s%i((s) moti-ation) (oya(ty) !etter attitu"es) an" other aspects that successfu( *or%ers an" managers usua((y "isp(ay$
METHO&S O= TRAINING( ) &he most *i"e(y use" metho"s of training use" !y organi;ations are c(assifie" into t*o categories# Bn-the-Jo! &raining & Bff-the-Jo! &raining$ ON)THE) OB TRAINING is gi-en at the *or% p(ace !y superior in re(ati-e(y short perio" of time$ &his type of training is cheaper & (ess timeconsuming$ &his training can !e imparte" !y !asica((y four metho"s# 45
Coac"ing is (earning !y "oing$ In this) the superior gui"es his su!-or"inates & gi-es him/her jo! instructions$ &he superior points out the mista%es & gi-es suggestions for impro-ement$ o. Rotation( ) In this metho") the trainees mo-e from one jo! to another) so that he/she shou(" !e a!(e to perform a(( types of jo!s$ 2$g$ In !an%ing in"ustry) emp(oyees are traine" for !oth !ac%-en" & front-en" jo!s$ In case of emergency) (a!senteeism or resignation)) any emp(oyee *ou(" !e a!(e to perform any type of jo!$ O== THE OB TRAINING( ) is gi-en outsi"e the actua( *or% p(ace$ Lect*re$FConference$() &his approach is *e(( a"apte" to con-ey specific information) ru(es) proce"ures or metho"s$ &his metho" is usefu() *here the information is to !e share" among a (arge num!er of trainees$ &he cost per trainee is (o* in this metho"$ =il#$( ) can pro-i"e information & e.p(icit(y "emonstrate s%i((s that are not easi(y presente" !y other techni+ues$ Motion pictures are often use" in conjunction *ith 'onference) "iscussions to c(arify & amp(ify those points that the fi(m emphasi;e"$ Si#*lation E;erci$e( ) ,ny training acti-ity that e.p(icit(y p(aces the trainee in an artificia( en-ironment that c(ose(y mirrors actua( *or%ing con"itions can !e consi"ere" a Simu(ation$ Simu(ation acti-ities inc(u"e case e.periences) e.perientia( e.ercises) -esti!u(e training) management games & ro(e-p(ay$ Ca$e$( ) present an in "epth "escription of a particu(ar pro!(em an emp(oyee might encounter on the jo!$ &he emp(oyee attempts to fin" an" ana(y;e the pro!(em) e-a(uate a(ternati-e courses of action & "eci"e *hat course of action *ou(" !e most satisfactory$ E;'eriential E;erci$e$( ) are usua((y short) structure" (earning e.periences *here in"i-i"ua(s (earn !y "oing$ 9or instance) rather than ta(%ing a!out inter-persona( conf(icts & ho* to "ea( *ith them) an e.perientia( e.ercise cou(" !e use" to create a conf(ict situation *here emp(oyees ha-e to e.perience a conf(ict persona((y & *or% out its so(utions$
46
6e$ti.*le Training# - 2mp(oyees (earn their jo!s on the e+uipment they *i(( !e using) !ut the training is con"ucte" a*ay from the actua( *or% f(oor$ :hi(e e.pensi-e) <esti!u(e training a((o*s emp(oyees to get a fu(( fee( for "oing tas% *ithout rea( *or(" pressures$ ,""itiona((y) it minimi;es the pro!(em of transferring (earning to the jo!$ Role Pla!( ) Its just (i%e acting out a gi-en ro(e as in a stage p(ay$ In this metho" of training) the trainees are re+uire" to enact "efine" ro(es on the !asis of ora( or *ritten "escription of a particu(ar situation$ Manage#ent Ga#e$( ) &he game is "e-ise" on a mo"e( of a !usiness situation$ &he trainees are "i-i"e" into groups *ho represent the management of competing companies$ &hey ma%e "ecisions just (i%e these are ma"e in rea(-(ife situations$ 3ecisions ma"e !y the groups are e-a(uate" & the (i%e(y imp(ications of the "ecisions are fe" !ac% to the groups$ &he game goes on in se-era( roun"s to ta%e the time "imension into account$ In)Ba$ket E;erci$e# - ,(so %no*n as In-tray metho" of training$ &he trainee is presente" *ith a pac% of papers & fi(es in a tray containing a"ministrati-e pro!(ems & is as%e" to ta%e "ecisions on these pro!(ems & are as%e" to ta%e "ecisions on these *ithin a stipu(ate" time$ &he "ecisions ta%en !y the trainees are compare" *ith one another$ &he trainees are pro-i"e" fee"!ac% on their performance$ RECOMMEN&ATIONS > CONCLUSION( ) 4o "ou!t &raining is a -ery po*erfu( too( for the smooth functioning of the organi;ation) !ut it nee"s to !e use" *ith care in or"er to "eri-e a(( the !enefits$ 1ere are $e+en recommen"ations for getting the !est out of this too(# 0. 0earn a!out the nee"s an" proficiency of each an" e-ery emp(oyee !efore an organi;ation in-ests its effort) time & money on training$ Its !etter to i"entify the nee"s & shortcomings in an emp(oyee !efore actua((y imparting training to him/her$ 5. 2.perience" & s%i((e" trainer) *ho possesses goo" amount of %no*(e"ge & un"erstan"ing a!out the organi;ationMs o!jecti-es) in"i-i"ua( a!i(ities & the present en-ironment) shou(" gi-e training$
47
7. ,cti-e participation from the trainees shou(" !e encourage"$ &here shou(" !e a t*o-*ay communication !et*een the trainer & trainee$ 8. 9ee"!ac% shou(" !e ta%en from the trainees after the training is o-er) so that the organi;ation comes to %no* a!out the "eficiencies in the training program & a(so suggestions to impro-e upon the same$ 9. 9ocus of training shou(" !e on priority "e-e(opment nee"s an" to pro"uce strong moti-ation to !ring change in emp(oyees$ G. &he cost incurre" on the training program shou(" not e.cee" its !enefits$ H. &he metho" or type of training shou(" !e -ery cautious(y se(ecte" !y the organi;ation "epen"ing upon the organi;ationsM resources & an emp(oyeeMs in"i-i"ua( nee" for training$ &hus) training is a -ita( too( to cope up *ith the changing nee"s & techno(ogies) & e-er-changing en-ironment$ It !enefits !oth the organi;ation as *e(( as the emp(oyees$ Training ado'ted .! *$ at Angel) :e a"opte" a proce"ura( training to e.ecute our gi-en tas%s$, proce"ure is a se+uence of steps that must !e fo((o*e" to accomp(ish a tas%$ &hese steps may !e re+uire a certain (e-e( of %no*(e"ge or ha-e menta( or physica( s%i((s associate" *ith them$ , proce"ure may !e (inear) that is) progress from one step to the ne.t unti( the tas% is comp(ete") or a proce"ure may ha-e one or more "ecision points *here the stu"ent *i(( ha-e to "eci"e *hich !ranch of the proce"ure to fo((o* ne.t$ 9or short) simp(e) (inear proce"ures) the fo((o*ing metho" of e.p(anation an" "emonstration is recommen"e"# a$ &he instructor "emonstrates the entire proce"ure an" e.p(ains each step as it is "one$ !$ &he instructor repeats the "emonstration !ut has the trainee e.p(ain *hat actions are occurring$ c$ &he trainee "emonstrates the proce"ure an" e.p(ains *hat he/she is "oing
48
at each step$ "$ &he trainee "emonstrates the proce"ure again so that the instructor can chec% for fu(( mastery$
&he instructor continues this Sprogressi-e partsS approach unti( the entire proce"ures is e.p(aine"$ It is sometimes appropriate to com!ine se-era( simp(er steps "uring the training or a""ress a more comp(e. step in"i-i"ua((y !efore com!ining it *ith the entire training$ 9or proce"ures that ha-e "ecision points) an o-er-ie* of the entire proce"ure is a goo" starting point$ ,fter that the proce"ure shou(" !e !ro%en up into segments for further instruction$ &he "ecision points *ithin a proce"ure are goo" !rea% points for the segments$ ,n instructor can ta(% a!out the se+uence of steps prior a "ecision point) or the steps !et*een "ecision points$ 3epen"ing upon *hether the segments are simp(e or comp(e.) the metho"s out(ine" a!o-e can !e use" for each segment$ &he information nee"e" to ma%e the "ecisions a(so nee"s to !e co-ere" at the appropriate point in the (esson$ 9or more comp(e. "ecision points) it is recommen"e" that a(( segments !e e.p(aine" an" "emonstrate" !efore "iscussing the "ecision points$ It is easier for a person to ma%e a more comp(e. "ecision *hen they un"erstan" the steps that ma%e up the a(ternati-e !ranches of the proce"ure$
Training Under &ifferent &e'art#ent) :e ha-e !een traine" un"er fo((o*ing "epartments0)Co##oditie$)
'ommo"ity mar%ets are mar%ets *here ra* or primary pro"ucts are e.change"$ &hese ra* commo"ities are tra"e" on
49
regu(ate" commo"ities e.changes) in *hich they are !ought an" so(" in stan"ar"i;e" contracts$ 'ommo"ities are easy to Qn"erstan" an" ha-e positi-e corre(ation *ith Inf(ation$ &he 'ommo"ity mar%et are g(o!a( in nature ) hence (ess ris% for manipu(ation$ 2-ery commo"ity ha-e separate mar%et in Itse(f an" hence many such mar%et is simu(ate" at one sing(e screen$&he tren" in one commo"ity not necessari(y ha-e corre(ation *ith the tren" of other$ 1istorica((y 'ommo"ities ha-e outperforme" the Stoc% Mar%et $ 3i-ersification through a "ifferent asset c(ass$ 0o* Margins 8 GT - F0T on(y
Co##oditie$ Seg#ent ,i$e AMCI > NC&EIB *etals .ils "nergy %ofts Agri. omm. 5o(" 'ru"e pa(m Bi( Brent cru"e 'otton Si(-er Mustar" See" S*eet 'ru"e Sugar see" Stee( 'astor oi( 9urnace oi( 5ur Bean 'opper Jeera Uinc 'hi(i 4ic%e( &urmeric 0ea" & etc$ ,(uminium
50
Pro.le#$ faced at t"e ti#e of training) &hough *e successfu((y e.ecute" our tas%s in our training)*e ha" to face fe* pro!(ems a(so an" they areF-'(ient information sheet *as not up"ate")most of them ha" !een sho*n *ith *rong information$ 2-Most of the c(ients *ere not gi-ing appointments an" some of them "i" not e-en ta(% on phone$ D-Many of the time *hen *e *ent to meet the c(ients *ith *hom appointments *as fi.e")after reaching the c(ient?s p(ace they sai" *e are not a-ai(a!(e an" not e-en intereste"$ E-, !ig pro!(em *as transportation)Most of the stu"ents are out of the state an" not ha-ing -ehic(e) :e face" (ot many pro!(ems to meet the c(ients at "ifferent "ifferent corners of ,hme"a!a"$ G-,t ange( *hi(e ca((ing to the customers)it happene" that *e "i" not ha-e sufficient phone a-ai(a!(e $ L-&raining room *as pre-occupie" !y fu(( time joinies)*e face" this pro!(em on(y 2 to D times$ @-<aria!(e strategy to e.ecute the tas%s$ I-:astage of time !ecause of a poor time management !y ,nge($
S*gge$tion$ to I#'ro+e) F-&here shou(" !e a fi.e" strategy for SIP training$ 2-&eam *or% shou(" !e there$ D-3ata shou(" !e up to "ate) so that *e can sa-e the time$ E-Participation shou(" !e there$ G-:e shou(" uti(i;e e-ery secon"$ L-&he MIS Proce"ure of company *as not proper$ @-&rainer an" trainee !oth shou(" reach on time at the pre"eci"e" p(ace$
51
I-2-ery tas% shou(" !e proper(y p(anne"$ 9-&he trainee shou(" try to (earn ho* to "ea( *ith time management$ F0-&he company shou(" ha-e proper refreshment faci(ity for SIP stu"ents$
Pa$t Perfor#ance
Our Offerings
B us ines s des cription
Advis ory & execution services for the entire gamut of financial services
C ore competencies
Advis ory services powered by world-class research E xecution backed by cutting edge technology and service truly personalized
E quities & Derivative broking # oan products C ommodities& C urrency broking fi!ed Deposits P ortfolio Management services "PO
Mutual unds
"nsurance
S ervice offerings
Depository S ervices
Margin unding
52
O*r inten$i+e re$earc" 'roce$$ In"ustry *ise specia(i;e" team Bottom-up approach# I"entifying un"er -a(ue" stoc% *ith soun" management &op -"o*n ,pproach# i"entifying promising sector & then companies *ith goo" -a(uations 'ompany -isits an" interaction *ith top & secon" (ine manager &horough ana(ysis of company?s financia( "ata ) promise -s performance & in"ustry tren"s 2stimates for future years? earnings !ase" on in"ustry tren"s & company !usiness p(ans O*r Re$earc" > Ad+i$or! Prod*ct$ Market o*tlook Pro-i"es price-sensiti-e information just !efore opening ana(ysis its impact on the mar%et in terms of # =ey corporate "e-e(opment Po(icy announcement 5eo-po(itica( ne*s & -ie*s Tec"nical Anal!$i$ ,na(ysis tra"ing patterns an" a -ie* on the mar%et position of %ey stoc%s/sectors for the ne.t tra"ing session Short term (F-G "ays) & me"ium term (F0-20 "ays) -ie*s &rac%s in"i-i"ua( scrip) the sense. & 4ifty & other in"ices &eri+ati+e$ anal!$i$ re'ort 9II acti-ity in the 9&B Segment 'hange in open mar%et
53
!e(( an"
Put ca(( ratio 'ost of carrying cost In"e.- !ase" "eri-ati-e pro"ucts
E)Broking
E$broking
Unique Online T rading products customized to suit different Investment / T rading needs
Uni4*e Online Trading Prod*ct$ C*$to#i<ed to $*it different in+e$t#entFTrading need$ Angel In+e$tor Qser-frien"(y !ro*ser for in-estors 2asy on(ine tra"ing p(atform :or%s in pro.y an" fire*a(( system set up Integrate" Bac% office# ,ccess account information 8 anytime) any*here Streaming +uotes efresh static rates *hen re+uire"
Mu(tip(e e.changes on sing(e screen Bn(ine fun" transfer faci(ity Angel Trade Qser-frien"(y !ro*ser-!ase" on(ine tra"ing p(atform$ Streaming +uotes 'an !e use" in pro.y as *e(( as fire*a(( en-ironments$
54
,"-antage to access your account from any*here$ Angel &iet ,pp(ication-!ase" p(atform for "ay tra"ers 1i-spee" tra"ing termina( on your "es%top Streaming +uotes for rea( time rate up"ates Mu(tip(e e.changes on sing(e screen Bn(ine fun" transfer faci(ity Integrate" Bac% office# ,ccess account information 8 anytime) any*here Angel An!,"ere ,pp(ication-!ase" p(atform for "ay tra"ers &ra"ing !ase" on historica( charts an" technica( too(s Streaming +uotes for rea( time rate up"ates Bn(ine fun" transfer faci(ity Integrate" Bac% office# ,ccess account information 8 anytime) any*here Back)Office Online client detail$ incl*de$ 0e"ger Ba(ance 'ash 3eposits *ith ,nge( Securities 1o("ings 'harges (e-ie"/Pai" in the c(ient?s account 0ast auction/c(ose-outs offere" 3P 1o("ing for the (ast D transactions
55
Portfolio Manage#ent Ser+ice$ Manage" !y our prominent 9un" Manager *ho are regu(ar(y fetche" !y &< me"ia for their -ie*s on stoc%s Qn"erstan"ing c(ient?s ris% & return profi(e Bffering the right !(en" of sector an" stoc% e.posures 5i-ing "e"icate" in-estement ,"-isors 5i-ing a choice of "ifferent schemes to suit e-ery in"i-i"ua( in-estor preferences 'atering to in"i-i"ua(s) 1Q9s) 'orporate) 4 Is) &rusts
Angel C*rrenc! =*t*re 'omprehensi-e 'o-erage on currencies eports co-ering in-"epth fun"amenta(s of the currencies 0atest economics "ata re(eases *ith their (i%e(y impact) a(ong *ith 6&echnica( 0e-e(s7 'omprehensi-e reports on currencies i"ea((y suite" for any in-estors / &ra"er
&e'o$itor! Ser+ice$ 4o physica( instruction re+uire" for the c(ient?s se(( o!(igations 0o*est transaction charges in the country ,cceptances & e.ecution of instruction on fa. , com!ine" month(y statement 6Bi(( &ransaction$ 1o("ing cum 0e"ger
Angel gold Persona(i;e" in-estment a"-isory Portfo(io estructuring an" continuous monitoring 5ui"ance e.perience" research team Perio"ic 5roup meeting *ith in-estors $
Pre)Paid Brokerage Uero ,ccount opening charges ,ttracti-e Bro%erage rates 9ree 3P ,M' for F year ,ssure" gifts *orth thousan"s *ith e-ery account 2asy an" fast recharge 9ree 9inancia( in-estment ,pp(ication *ith e-ery account
S'eciali<ed Prod*ct$
MARGIN =UN&ING faci(ity to a((o* c(ients to ta%e higher e.poser instant (i+ui"ity for c(ients margin is "eposite" in cash as *e(( as co((atera(s 2na!(ing c(ients gra! 2arning Bpportunity$
57
6ALUE A&&E& SER6ICES NRI Ser+ice$ 4 I Ser-ices 3es% for persona(i;e" ,ssistance$ 3e"icate" off(ine 2+uity 3ea(ing 3es%$ Bn(ine 2+uity "ea(ing 3es% 4 I In-estment ,"-isory 3es% P,4 'ar" ,ssistance Support for !an%ing-PIS ,ccounts Portfo(io Management) Mutua( 9un") IPB ser-ices$
INSURANCE ANGEL O==ERS Pro"ucts to meet the o!jecti-es of ris% co-erage $in-estment an" ta. p(anning$ ,ssessment of your insurance nee"s after proper ris% profi(ing$ , *i"e array of in"i-i"ua( (ife co-er p(ans to meet your protection) sa-ings)an" retirement nee"s$
M*t*al f*nd$ ,n integrate" p(atform for on(ine /off(ine mutua( fun"s &ie-up *ith a(( major ,M'S
58
3e"icate e(ationship Manager for Business Partners 2.c(usi-e M9 esearch eports !y ange(W"ai(y)*ee%(y)month(y)mutua( fun" reportsX$ Loan$- IPO and fi;ed &e'o$it$ Pro"ucts "istri!ute" !y ange( inc(u"e Qnsecure" (oans persona(/!usiness (oans against properties Secure" (oans$ home (oans/(oan against properties (oan against securities/go(") IPB-3istri!ution ) ,"-isory an" he(p "es% ) 9i.e" 3eposits )41B term 3eposits$ Ri$k #anage#ent at angel ,n efficient ris% management system *hich ena!(es the customer to effecti-e(y monitor the positions$ &he c(ient report can !e accesse" from any p(ace an" gi-es categorica( "isp(ay of the (e"ger !a(ance "eposits an" ho("ings$
59
Our Offerings
B us ines s des cription
Advis ory & execution services for the entire gamut of financial services
C ore competencies
Advis ory services powered by world-class research E xecution backed by cutting edge technology and service truly personalized
E quities & Derivative broking # oan products C ommodities& C urrency broking fi!ed Deposits P ortfolio Management services "PO
Mutual unds
"nsurance
S ervice offerings
Depository S ervices
Margin unding
60
Bottom-up approach# I"entifying un"er -a(ue" stoc% *ith soun" management &op -"o*n ,pproach# i"entifying promising sector & then companies *ith goo" -a(uations 'ompany -isits an" interaction *ith top & secon" (ine manager &horough ana(ysis of company?s financia( "ata ) promise -s performance & in"ustry tren"s 2stimates for future years? earnings !ase" on in"ustry tren"s & company !usiness p(ans O*r Re$earc" > Ad+i$or! Prod*ct$ Market o*tlook Pro-i"es price-sensiti-e information just !efore opening ana(ysis its impact on the mar%et in terms of # =ey corporate "e-e(opment Po(icy announcement 5eo-po(itica( ne*s & -ie*s Tec"nical Anal!$i$ ,na(ysis tra"ing patterns an" a -ie* on the mar%et position of %ey stoc%s/sectors for the ne.t tra"ing session Short term (F-G "ays) & me"ium term (F0-20 "ays) -ie*s &rac%s in"i-i"ua( scrip) the sense. & 4ifty & other in"ices &eri+ati+e$ anal!$i$ re'ort 9II acti-ity in the 9&B Segment 'hange in open mar%et Put ca(( ratio 'ost of carrying cost
61
!e(( an"
E)Broking
E$broking
Unique Online T rading products customized to suit different Investment / T rading needs
Uni4*e Online Trading Prod*ct$ C*$to#i<ed to $*it different in+e$t#entFTrading need$ Angel In+e$tor Qser-frien"(y !ro*ser for in-estors 2asy on(ine tra"ing p(atform :or%s in pro.y an" fire*a(( system set up Integrate" Bac% office# ,ccess account information 8 anytime) any*here Streaming +uotes efresh static rates *hen re+uire"
Mu(tip(e e.changes on sing(e screen Bn(ine fun" transfer faci(ity Angel Trade Qser-frien"(y !ro*ser-!ase" on(ine tra"ing p(atform$ Streaming +uotes 'an !e use" in pro.y as *e(( as fire*a(( en-ironments$ ,"-antage to access your account from any*here$ Angel &iet
62
,pp(ication-!ase" p(atform for "ay tra"ers 1i-spee" tra"ing termina( on your "es%top Streaming +uotes for rea( time rate up"ates Mu(tip(e e.changes on sing(e screen Bn(ine fun" transfer faci(ity Integrate" Bac% office# ,ccess account information 8 anytime) any*here Angel An!,"ere ,pp(ication-!ase" p(atform for "ay tra"ers &ra"ing !ase" on historica( charts an" technica( too(s Streaming +uotes for rea( time rate up"ates Bn(ine fun" transfer faci(ity Integrate" Bac% office# ,ccess account information 8 anytime) any*here Back)Office Online client detail$ incl*de$ 0e"ger Ba(ance 'ash 3eposits *ith ,nge( Securities 1o("ings 'harges (e-ie"/Pai" in the c(ient?s account 0ast auction/c(ose-outs offere" 3P 1o("ing for the (ast D transactions
63
Manage" !y our prominent 9un" Manager *ho are regu(ar(y fetche" !y &< me"ia for their -ie*s on stoc%s Qn"erstan"ing c(ient?s ris% & return profi(e Bffering the right !(en" of sector an" stoc% e.posures 5i-ing "e"icate" in-estement ,"-isors 5i-ing a choice of "ifferent schemes to suit e-ery in"i-i"ua( in-estor preferences 'atering to in"i-i"ua(s) 1Q9s) 'orporate) 4 Is) &rusts
Angel C*rrenc! =*t*re 'omprehensi-e 'o-erage on currencies eports co-ering in-"epth fun"amenta(s of the currencies 0atest economics "ata re(eases *ith their (i%e(y impact) a(ong *ith 6&echnica( 0e-e(s7 'omprehensi-e reports on currencies i"ea((y suite" for any in-estors / &ra"er
&e'o$itor! Ser+ice$ 4o physica( instruction re+uire" for the c(ient?s se(( o!(igations 0o*est transaction charges in the country ,cceptances & e.ecution of instruction on fa. , com!ine" month(y statement 6Bi(( &ransaction$ 1o("ing cum 0e"ger
64
Angel gold Persona(i;e" in-estment a"-isory Portfo(io estructuring an" continuous monitoring 5ui"ance e.perience" research team Perio"ic 5roup meeting *ith in-estors $
Pre)Paid Brokerage Uero ,ccount opening charges ,ttracti-e Bro%erage rates 9ree 3P ,M' for F year ,ssure" gifts *orth thousan"s *ith e-ery account 2asy an" fast recharge 9ree 9inancia( in-estment ,pp(ication *ith e-ery account
S'eciali<ed Prod*ct$
MARGIN =UN&ING faci(ity to a((o* c(ients to ta%e higher e.poser instant (i+ui"ity for c(ients margin is "eposite" in cash as *e(( as co((atera(s 2na!(ing c(ients gra! 2arning Bpportunity$
65
4 I Ser-ices 3es% for persona(i;e" ,ssistance$ 3e"icate" off(ine 2+uity 3ea(ing 3es%$ Bn(ine 2+uity "ea(ing 3es% 4 I In-estment ,"-isory 3es% P,4 'ar" ,ssistance Support for !an%ing-PIS ,ccounts Portfo(io Management) Mutua( 9un") IPB ser-ices$
INSURANCE ANGEL O==ERS Pro"ucts to meet the o!jecti-es of ris% co-erage $in-estment an" ta. p(anning$ ,ssessment of your insurance nee"s after proper ris% profi(ing$ , *i"e array of in"i-i"ua( (ife co-er p(ans to meet your protection) sa-ings)an" retirement nee"s$
M*t*al f*nd$ ,n integrate" p(atform for on(ine /off(ine mutua( fun"s &ie-up *ith a(( major ,M'S 3e"icate e(ationship Manager for Business Partners
66
2.c(usi-e M9 esearch eports !y ange(W"ai(y)*ee%(y)month(y)mutua( fun" reportsX$ Loan$- IPO and fi;ed &e'o$it$ Pro"ucts "istri!ute" !y ange( inc(u"e Qnsecure" (oans persona(/!usiness (oans against properties Secure" (oans$ home (oans/(oan against properties (oan against securities/go(") IPB-3istri!ution ) ,"-isory an" he(p "es% ) 9i.e" 3eposits )41B term 3eposits$ Ri$k #anage#ent at angel ,n efficient ris% management system *hich ena!(es the customer to effecti-e(y monitor the positions$ &he c(ient report can !e accesse" from any p(ace an" gi-es categorica( "isp(ay of the (e"ger !a(ance "eposits an" ho("ings$
Ind*$tr! Anal!$i$
Ind*$tr! Anal!$i$ at Indian le+el 0. INTRO&UCTION TO IN&IAN MAR%ETS
&12 2 , 2 &:B &RP2S B9 M, =2&S I4 I43I, MONEJ MAR%ET
67
Money mar%et is a mar%et for "e!t securities that pay off in the short term usua((y (ess than one year) for e.amp(e the mar%et for 90-"ays treasury !i((s$ &his mar%et encompasses the tra"ing an" issuance of short term non e+uity "e!t instruments inc(u"ing treasury !i((s) commercia( papers) !an%ers acceptance) certificates of "eposits) etc$ In other *or" *e can a(so say that the Money Mar%et is !asica((y concerne" *ith the issue an" tra"ing of securities *ith short term maturities or +uasi-money instruments$ &he Instruments tra"e" in the money-mar%et are &reasury Bi((s) 'ertificates of 3eposits ('3s)) 'ommercia( Paper ('Ps)) Bi((s of 2.change an" other such instruments of short-term maturities (i$e$ not e.cee"ing F year *ith regar" to the origina( maturity)
CAPITAL MAR%ET
'apita( mar%et is a mar%et for (ong-term "e!t an" e+uity shares$ In this mar%et) the capita( fun"s comprising of !oth e+uity an" "e!t are issue" an" tra"e"$ &his a(so inc(u"es pri-ate p(acement sources of "e!t an" e+uity as *e(( as organi;e" mar%ets (i%e stoc% e.changes$
PRIMARJ MAR%ET
In the primary mar%et) securities are offere" to pu!(ic for su!scription for the purpose of raising capita( or fun"$ Secon"ary mar%et is an e+uity tra"ing a-enue in *hich a(rea"y e.isting/pre- issue" securities are tra"e" amongst in-estors$ Secon"ary mar%et cou(" !e either auction or "ea(er mar%et$ :hi(e stoc% e.change is the part of an auction mar%et) B-er-the-'ounter (B&') is a part of the "ea(er mar%et$
SECON&ARJ MAR%ET
Secon"ary Mar%et refers to a mar%et *here securities are tra"e" after !eing initia((y offere" to the pu!(ic in the primary mar%et an"/or (iste" on the Stoc% 2.change$ Majority of the tra"ing is "one in the secon"ary mar%et$ Secon"ary mar%et comprises of e+uity mar%ets an" the "e!t mar%ets$ 9or the genera( in-estor) the secon"ary mar%et pro-i"es an efficient p(atform for tra"ing of his securities$ 9or the management of the company) Secon"ary e+uity mar%ets ser-e as a monitoring an" contro( con"uitY!y faci(itating -a(ue-enhancing contro( acti-ities) ena!(ing imp(ementation of incenti-e-!ase" management contracts) an" aggregating information (-ia price "isco-ery) that gui"es management "ecisions$
68
In the primary mar%et) securities are offere" to pu!(ic for su!scription for the purpose of raising capita( or fun"$ Secon"ary mar%et is an e+uity tra"ing a-enue in *hich a(rea"y e.isting/pre- issue" securities are tra"e" amongst in-estors$ Secon"ary mar%et cou(" !e either auction or "ea(er mar%et$ :hi(e stoc% e.change is the part of an auction mar%et) B-er-the-'ounter (B&') is a part of the "ea(er mar%et$
69
pursuant to a scheme) e-i"encing the purchase or ac+uisition !y the ho("er thereof) of an un"i-i"e" right) tit(e or interest in the financia( asset in-o(-e" in securitisation$ Go+ern#ent $ec*ritie$ AG)Sec$B( &hese are so-ereign (cre"it ris%-free) coupon !earing instruments *hich are issue" !y the eser-e Ban% of In"ia on !eha(f of 5o-ernment of In"ia) in (ieu of the 'entra( 5o-ernmentMs mar%et !orro*ing programme$ &hese securities ha-e a fi.e" coupon that is pai" on specific "ates on ha(f-year(y !asis$ &hese securities are a-ai(a!(e in *i"e range of maturity "ates) from short "ate" ((ess than one year) to (ong "ate" (upto t*enty years)$ &e.ent*re$( Bon"s issue" !y a company !earing a fi.e" rate of interest usua((y paya!(e ha(f year(y on specific "ates an" principa( amount repaya!(e on particu(ar "ate on re"emption of the "e!entures$ 3e!entures are norma((y secure"/ charge" against the asset of the company in fa-our of "e!enture ho("er$ Bond( , negotia!(e certificate e-i"encing in"e!te"ness$ It is norma((y unsecure"$ , "e!t security is genera((y issue" !y a company) municipa(ity or go-ernment agency$ , !on" in-estor (en"s money to the issuer an" in e.change) the issuer promises to repay the (oan amount on a specifie" maturity "ate$ &he issuer usua((y pays the !on" ho("er perio"ic interest payments o-er the (ife of the (oan$ &he -arious types of Bon"s are as fo((o*sKero Co*'on Bond( Bon" issue" at a "iscount an" repai" at a face -a(ue$ 4o perio"ic interest is pai"$ &he "ifference !et*een the issue price an" re"emption price represents the return to the ho("er$ &he !uyer of these !on"s recei-es on(y one payment) at the maturity of the !on"$ Con+erti.le Bond( , !on" gi-ing the in-estor the option to con-ert the !on" into e+uity at a fi.e" con-ersion price$ Co##ercial Pa'er( , short term promise to repay a fi.e" amount that is p(ace" on the mar%et either "irect(y or through a specia(i;e" interme"iary$ It is usua((y issue" !y companies *ith a high cre"it stan"ing in the form of a promissory note re"eema!(e at par to the ho("er on maturity an" therefore) "oesn?t re+uire any guarantee$ 'ommercia( paper is a money mar%et instrument issue" norma((y for a tenure of 90 "ays$
Trea$*r! Bill$( Short-term (up to 9F "ays) !earer "iscount security issue" !y the 5o-ernment as a means of financing its cash re+uirements$
5. SEBI
SECURITJ AN& EICHANGE BOAR& O= IN&IA
70
SEBI AN& ITS ROLE IN THE SECON&ARJ MAR%ET &he S2BI is the regu(atory authority esta!(ishe" un"er Section D of S2BI ,ct F992 to protect the interests of the in-estors in securities an" to promote the "e-e(opment of) an" to regu(ate) the securities mar%et an" for matters connecte" there*ith an" inci"enta( thereto$ Securities an" 2.change Boar" of In"ia constitute" un"er the eso(ution of the 5o-ernment of In"ia in the 3epartment of 2conomic ,ffairs 4o$F (EE)S2/IL) "ate" the F2th "ay of ,pri() F9IIH &he Boar" sha(( consist of the fo((o*ing mem!ers) name(y#1" , 'hairman 2" &*o mem!ers from amongst the officia(s of the Ministry of the 'entra( 5o-ernment "ea(ing *ith 9inance (an" a"ministration of the 'ompanies ,ct) F9GLH) 2 of F9DE 3" Bne mem!er from amongst the officia(s of Zthe eser-e Ban% 4" 9i-e other mem!ers of *hom at (east three sha(( !e the *ho(e-time mem!ers
BOMBAJ LIMITE&
STOC%
EICHANGE
O=
IN&IA
Bom!ay Stoc% 2.change 0imite" is the o("est stoc% e.change in ,sia *ith a rich heritage$ Popu(ar(y %no*n as SBS2S) it *as esta!(ishe" as S&he 4ati-e Share & Stoc% Bro%ers ,ssociationS in FI@G$ It is the first stoc% e.change in the country to o!tain permanent recognition in F9GL from the 5o-ernment of In"ia un"er the Securities 'ontracts ( egu(ation) ,ct) F9GL$ &he 2.changeMs pi-ota( an" pre-eminent ro(e in the "e-e(opment of the In"ian capita( mar%et is *i"e(y recogni;e" an" its in"e.) %"/%"0) is trac%e" *or("*i"e$ 2ar(ier an ,ssociation of Persons (,BP)) the 2.change is no* a "emutua(ise" an" corporati-e entity incorporate" un"er the pro-isions of the 'ompanies ,ct) F9GL) pursuant to the BS2 ('orporati;ation an" 3emutua(i;ation) Scheme) 200G notifie" !y the Securities an" 2.change Boar" of In"ia (S2BI)$ :ith "emutua(i;ation) the tra"ing rights an" o*nership rights ha-e !een "e-(in%e" effecti-e(y a""ressing concerns regar"ing percei-e" an" rea( conf(icts of interest$ &he 2.change is professiona((y manage" un"er the o-era(( "irection of the Boar" of 3irectors$ &he Boar" comprises eminent professiona(s) representati-es of &ra"ing Mem!ers an" the Managing 3irector of the 2.change$ &he Boar" is inc(usi-e an" is "esigne" to !enefit from the participation of mar%et interme"iaries$
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In terms of organi;ation structure) the Boar" formu(ates (arger po(icy issues an" e.ercises o-er-a(( contro($ &he committees constitute" !y the Boar" are !roa"-!ase"$ &he "ay-to-"ay operations of the 2.change are manage" !y the Managing 3irector an" a management team of professiona(s$ &he 2.change has a nation-*i"e reach *ith a presence in EF@ cities an" to*ns of In"ia$ &he systems an" processes of the 2.change are "esigne" to safeguar" mar%et integrity an" enhance transparency in operations$ 3uring the year 200E-200G) the tra"ing -o(umes on the 2.change sho*e" ro!ust gro*th$ &he 2.change pro-i"es an efficient an" transparent mar%et for tra"ing in e+uity) "e!t instruments an" "eri-ati-es$ &he BS2Ms Bn 0ine &ra"ing System (BB0&) is a proprietary system of the 2.change an" is BS @@99-2-2002 certifie"$ &he sur-ei((ance an" c(earing & sett(ement functions of the 2.change are ISB 900F#2000 certifie"$
Bom!ay Stoc% 2.change 0imite" (BS2) *hich *as foun"e" in FI@G *ith si. !ro%ers has no* gro*n into a giant institution *ith o-er I@E registere" Bro%er-Mem!ers sprea" o-er DI0 cities across the country$ &o"ay) BS2Ms :i"e ,rea 4et*or% (:,4) connecting o-er I000 BS2 Bn(ine &ra"ing (BB0&) System &ra"er :or% Stations (&:S) is one of the (argest of its %in" in the country$ :ith a -ie* to pro-i"e efficient an" integrate" ser-ices to the in-esting pu!(ic through the mem!ers an" their associates in the operations pertaining to the 2.change) Bom!ay Stoc% 2.change 0imite" (BS2) has set up a uni+ue Mem!er Ser-ices an" 3e-e(opment to atten" to the pro!(ems of the Bro%er-Mem!ers$ Mem!er Ser-ices an" 3e-e(opment 3epartment is the sing(e point interface for interacting *ith the 2.change ,"ministration to a""ress to Mem!ersM issues$ &he 3epartment ta%es care of -arious pro!(ems an" constraints face" !y the Mem!ers in -arious pro"ucts such as 'ash) 3eri-ati-es) Internet &ra"ing) an" Processes such as &ra"ing) &echno(ogy) '(earing an" Sett(ement) Sur-ei((ance an" Inspection) Mem!ership) &raining) 'orporate Information) etc$
COMMO&ITJ EICHANGES
&here are three categories# NC&EI MCI NMCE
$
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, !rief "escription of commo"ity e.changes are those *hich tra"e in particu(ar commo"ities) neg(ecting the tra"e of securities) stoc% in"e. futures an" options etc$ In the mi""(e of F9th century in the Qnite" States) !usinessmen !egan organi;ing mar%et forums to ma%e the !uying an" se((ing of commo"ities easier$ &hese centra( mar%etp(aces pro-i"e" a p(ace for !uyers an" se((ers to meet) set +ua(ity an" +uantity stan"ar"s) an" esta!(ish ru(es of !usiness$ ,gricu(tura( commo"ities *ere most(y tra"e" !ut as (ong as there are !uyers an" se((ers) any commo"ity can !e tra"e"$ In FI@2) a group of Manhattan "airy merchants got together to !ring chaotic con"ition in 4e* Ror% mar%et to a system in terms of storage) pricing) an" transfer of agricu(tura( pro"ucts$ In F9DD) "uring the 5reat 3epression) the 'ommo"ity 2.change) Inc$) *as esta!(ishe" in 4e* Ror% through the merger of four sma(( e.chan ges 8 the 4ationa( Meta( 2.change) the u!!er 2.change of 4e* Ror%) the 4ationa( a* Si(% 2.change) an" the 4e* Ror% 1i"e 2.change$ &he major commo"ity mar%ets are in the Qnite" =ing"om an" in the QS,$ In in"ia there are 2G recogni;e" future e.changes) of *hich there are three nationa( (e-e( mu(ti-commo"ity e.changes$ ,fter a gap of a(most three "eca"es) 5o-ernment of In"ia has a((o*e" for*ar" transactions in commo"ities through Bn(ine 'ommo"ity 2.changes) a mo"ification of tra"itiona( !usiness %no*n as ,"hat an" <ay"a <yapar to faci(itate !etter ris% co-erage an" "e(i-ery of commo"ities$ T"e t"ree e;c"ange$ are(
0. National Co##odit! > &eri+ati+e$ E;c"ange Li#ited ANC&EIB 5. M*lti Co##odit! E;c"ange of India Li#ited AMCIB 7. National M*lti)Co##odit! E;c"ange of India Li#ited ANMCEILB
,(( the e.changes ha-e !een set up un"er o-era(( contro( of 9or*ar" Mar%et 'ommission (9M') of 5o-ernment of In"ia$
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5. M*lti
Co##odit! E;c"ange
of
India
Li#itedAMCIB
1ea"+uartere" in Mum!ai Mu(ti 'ommo"ity 2.change of In"ia 0imite" (M'K)) is an in"epen"ent an" "e-mutu(ise" e.change *ith a permanent recognition from 5o-ernment of In"ia$ =ey shareho("ers of M'K are 9inancia( &echno(ogies (In"ia) 0t"$) State Ban% of In"ia) Qnion Ban% of In"ia) 'orporation Ban%) Ban% of In"ia an" 'anara Ban%$ M'K faci(itates on(ine tra"ing) c(earing an" sett(ement operations for commo"ity futures mar%ets across the country$ M'K starte" offering tra"e in 4o-em!er 200D an" has !ui(t strategic a((iances *ith Bom!ay Bu((ion ,ssociation) Bom!ay Meta( 2.change) So(-ent 2.tractors? ,ssociation of In"ia) Pu(ses Importers ,ssociation an" Shet%ari Sanghatana$
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, !ig "ifference !et*een a typica( auction) *here a sing(e auctioneer announces the !i"s) an" the 2.change is that peop(e are not on(y competing to !uy !ut a(so to se(($ By 2.change ru(es an" !y (a*) no one can !i" un"er a higher !i") an" no one can offer to se(( higher than someone e(se?s (o*er offer$ &hat %eeps the mar%et as efficient as possi!(e) an" %eeps the tra"ers on their toes to ma%e sure no one gets the purchase or sa(e !efore they "o$
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8. NSE =AMILJ
NSCCL
4ationa( Securities '(earing 'orporation 0t"$ (4S''0)) a *ho((y-o*ne" su!si"iary of 4S2) *as incorporate" in ,ugust F99G an" commence" c(earing operations in ,pri( F99L$ It *as the first c(earing corporation in the country to pro-i"e notation/sett(ement guarantee that re-o(utioni;e" the entire concept of sett(ement system in In"ia$ It *as set up to !ring an" 9 sustain confi"ence in c(earing an" sett(ement of securitiesH to promote an" maintain short an" consistent sett(ement cyc(esH to pro-i"e counter-party ris% guarantee) an" to operate a tight ris% containment system$ It carries out the c(earing an" sett(ement of the tra"es e.ecute" in the e+uities an" "eri-ati-es segments of the 4S2$
IISL
India Inde; Ser+ice$ and Prod*ct$ Li#ited AIISLB ) a joint -enture of 4S2 an" 're"it ating Information Ser-ices of In"ia 0imite" (' ISI0)) *as set up in May F99I to pro-i"e in"ices an" in"e. ser-ices$ It has a consu(ting an" (icensing agreement *ith Stan"ar" an" PoorMs (S&P)) the *or("Ms (ea"ing pro-i"er of in-est a!(e e+uity in"ices) for co-!ran"ing e+uity in"ices$ IIS0 poo(s the in"e. "e-e(opment efforts of 4S2 an" ' ISI0 into a coor"inate" *ho(e$ It is In"iaMs first specia(i;e" company *hich focuses upon the in"e. as a core pro"uct$ It pro-i"es a !roa" range of pro"ucts an" professiona( in"e. ser-ices$ It maintains o-er @0 e+uity in"ices comprising !roa"-!ase" !enchmar% in"ices) sectora( in"ices an" customi;e" in"ices$ Many in-estment an" ris% management pro"ucts !ase" on IIS0 in"ices ha-e !een "e-e(ope" in the recent past$ &hese inc(u"e in"e. !ase" "eri-ati-es on 4S2) a num!er of in"e. fun"s an" In"iaMs first e.change tra"e" fun"$
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NS&L
Prior to tra"ing in a "emateria(i;e" en-ironment) sett(ement of tra"es re+uire" mo-ing the securities physica((y from the se((er to the u(timate !uyer) through the se((erMs !ro%er an" !uyerMs !ro%er) *hich in-o(-e" (ot of time an" the ris% of "e(ay some*here a(ong the chain$
NSE.IT
4S2$I& 0imite") a F00T techno(ogy su!si"iary of 4S2) *as incorporate" in Bcto!er F999 to pro-i"e thrust to 4S2?s techno(ogy e"ge) concomitant *ith its o-era(( goa( of harnessing (atest techno(ogy for optimum !usiness use$ It pro-i"es the securities in"ustry *ith techno(ogy that ensures transparency an" efficiency in the tra"ing) c(earing an" ris% management systems$ ,""itiona((y) 4S2$I& pro-i"es consu(tancy ser-ices in the areas of "ata *arehousing) internet an" !usiness continuity p(ans$
NC&EI
4S2 joine" han" *ith other financia( institutions in In"ia -i;$) I'I'I Ban%) 4,B, 3) 0I') P4B) ' ISI0) 'anara Ban% an" I99'B to promote the 4'32K *hich pro-i"e a p(atform for mar%et participants to tra"e in *i"e spectrum of commo"ity "eri-ati-es$ 'urrent(y 4'32K faci(itates tra"ing of D@ agro !ase" commo"ities) F !ase meta( an" 2 precious meta($
9. LISTING O= SECURITIES
&he stoc%s) !on"s an" other securities issue" !y issuers re+uire (isting for pro-i"ing (i+ui"ity to in-estors$ 0isting means forma( a"mission of a security to the tra"ing p(atform of the 2.change$ It pro-i"es (i+ui"ity to in-estors *ithout compromising the nee" of the issuer for capita( an" ensures effecti-e monitoring of con"uct of the issuer an" tra"ing of the securities in the interest of in-estors$ &he issuer *ishing to ha-e tra"ing pri-i(eges for its securities satisfies (isting re+uirements prescri!e" in the re(e-ant statutes an" in the (isting regu(ations of the 2.change$ It a(so agrees to pay the (isting fees an" comp(y *ith (isting re+uirements on a continuous !asis$ ,(( the issuers *ho (ist their securities ha-e to satisfy the corporate go-ernance re+uirement frame" !y regu(ators$
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G. MEMBERSHIP A&MINISTRATION
&he tra"ing in 4S2 has a three tier structure-the tra"ing p(atform pro-i"e" !y the 2.change) the !ro%ing an" interme"iary ser-ices an" the in-esting community$ &he tra"ing mem!ers ha-e !een pro-i"e" e.c(usi-e rights to tra"e su!ject to their continuous(y fu(fi((ing the o!(igation un"er the u(es) egu(ations) Bye(a*s) 'ircu(ars) etc$ of the 2.change$ &he tra"ing mem!ers are su!ject to its regu(atory "iscip(ine$ ,ny entity can !ecome a tra"ing mem!er !y comp(ying *ith the prescri!e" e(igi!i(ity criteria an" e.it !y surren"ering tra"ing mem!ership$ &here are no entry/e.it !arriers to tra"ing mem!ership$
H. IN6ESTOR GRIE6ANCES
In-estors are the !ac%!one of the securities mar%et$ Protection of their interests is paramount for 4S2$ In furtherance of their interests) 4S2 has put in p(ace systems to ensure a-ai(a!i(ity of a"e+uate) up-to-"ate an" correct information to in-estors to ena!(e them to ta%e informe" "ecisions$ It ensures that critica( an" price-sensiti-e information reaching the e.change is ma"e a-ai(a!(e to a(( c(asses of in-estor at the same point of time$ Such price-sensiti-e information as !onus announcements) mergers) ne* (ine of !usiness) etc$ recei-e" from the companies is "isseminate" to a(( the mar%et participants through the net*or% of 4S2 termina(s a(( o-er In"ia$ ,ction is initiate" !y the 2.change *hene-er any %in" of price sensiti-e information is not pro-i"e" to the 2.change at the prescri!e" time !y companies (iste" on the 2.change$
L. &EMATERIALISATION REMATERIALISATION
&EMATERIALISATION
MEANING
>
3emateria(isation is the process !y *hich physica( certificates of an in-estor are con-erte" to an e+ui-a(ent num!er of securities in e(ectronic form an" cre"ite" into the in-estorMs account *ith his/her 3P$ &e#ateriali$ing $ec*ritie$ A'"!$ical "olding into electronic "oldingB In or"er to "emateria(ise physica( securities one has to fi(( in a 3 9 (3emat e+uest 9orm) *hich is a-ai(a!(e *ith the 3P an" su!mit the same a(ong *ith physica( certificates one *ishes to "emateria(ise$ Separate 3 9 has to !e fi((e" for each ISI4 4um!er$ &he comp(ete process of "emateria(isation is out(ine" !e(o*#
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Surren"er certificates for "emateria(isation to your "epository participant$ 3epository participant intimates 3epository of the re+uest through the system$ 3epository participant su!mits the certificates to the registrar of the Issuer 'ompany$ egistrar confirms the "emateria(isation re+uest from "epository$ ,fter "emateria(ising the certificates) egistrar up"ates accounts an" informs "epository of the comp(etion of "emateria(isation$ 3epository up"ates its accounts an" informs the "epository participant$ 3epository participant up"ates the "emat account of the in-estor$ REMATERIALISATION &he process of remateria(isation is use" to con-ert the e(ectronic ho("ing into physica( ho("ings$ If one *ishes to get !ac% his securities in the physica( form one has to fi(( in the 9 ( emat e+uest 9orm) an" re+uest his 3P for remateria(isation of the !a(ances in his securities account$ &he process of remateria(isation is out(ine" !e(o*# Bne ma%es a re+uest for "emateria(isation$ 3epository participant intimates "epository of the re+uest through the system$ 3epository confirms "emateria(isation re+uest to the registrar$ egistrar up"ates accounts an" prints certificates$ 3epository up"ates accounts an" "o*n(oa"s "etai(s to "epository participant$ egistrar "ispatches certificates to in-estor$
$*. .roker
, su! !ro%er is a person *ho is registere" *ith S2BI as such an" is affi(iate" to a mem!er of a recogni;e" stoc% e.change$
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Sett(ement cyc(e is on &A2 ro((ing sett(ement !asis *$e$f$ ,pri( 0F) 200D$ &he e.changes ha-e to ensure that the pay out of fun"s an" securities to the c(ients is "one !y the !ro%er *ithin 2E hours of the payout$ &he 2.changes *i(( ha-e to issue press re(ease imme"iate(y after pay out$
00. AUCTION
@HAT IS AN AUCTIONM
&he 2.change purchases the re+uisite +uantity in the ,uction Mar%et an" gi-es them to the !uying tra"ing mem!er$ &he shortages are met through auction process an" the "ifference in price in"icate" in contract note an" price recei-e" through auction is pai" !y mem!er to the 2.change) *hich is then (ia!(e to !e reco-ere" from the c(ient$
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ICICIdirect.co# ,a$ t"e fir$t entrant into e).roking. I'I'"irect$com pro-i"es the D-in-F to the users *hich ties in their sa-ing !an% account an" their 3emat account to their !ro%erage account e(ectronica((y$ &his integration ensures that money is transferre" to/from their !an% account an" the shares are transferre" from/to their 3emat account automatica((y *ithout *riting any che+ues or transfer instructions *hi(e carrying out their tra"es in shares$ I'I'I"irect$com has the option of tra"ing in shares in cash) margin or spot segments$ ,n in-estor can a(so in-est in FE Mutua( 9un"s (Pru"entia( I'I'I M9) 9ran%(in &emp(eton In"ia M9) ,((iance 'apita( M9) JM M9) Bir(a Sun 0ife M9) Sun"aram M9) I0&9S M9) Principa( M9) 139' M9) Stan"ar" 'hartere" M9) e(iance 'apita( M9) =ota% Mahin"ra M9) &,&, M9 an" 3SP M2 I00 0R4'1 M9) through their tra"ing account$
9Pai$a.co#(
Gpaisa is the tra"e name of In"ia Info(ine Securities Pri-ate 0imite" (Gpaisa)) mem!er of 4ationa( Stoc% 2.change an" &he Stoc% 2.change) Mum!ai$ Gpaisa is a *ho((y o*ne" su!si"iary of In"ia Info(ine 0t") In"ia?s (ea"ing an" most popu(ar finance an" in-estment porta($ Gpaisa has emerge" as one of (ea"ing p(ayers in e-!ro%ing space in In"ia$ &he company?s !ro%erage is one of the (o*est in the in"ustry$ It a(so pro-i"es the research on commo"ities$ In-estors can !enefit from its ana(ysis an" a"-ice a-ai(a!(e at the c(ic% of the mouse$ 9or those *ho prefer to tra"e the tra"itiona( *ay) In"ia Info(ine in-estor points are a-ai(a!(e across the country$ In"ia Info(ine *as foun"e" !y a group of professiona(s in F99G$ Its institutiona( in-estors inc(u"e Inte( 'apita() one of the (ea"ing techno(ogy companies in the *or(" promote" !y the Q= go-ernment) I'I'I) &3, an" eeshanar$ &he company offers a s(e* of pro"ucts such as stoc% an" "eri-ati-es !ro%ing) commo"ities !ro%ing an" mutua( fun"s$
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e+uity offerings !y P IM2 3ata!ase$ It has a(so *on the Best 2+uity 1ouse ,*ar" from 9inance ,sia - ,pri( 200E$ =ota% Securities 0t" is a(so a "epository participant *ith 4ationa( Securities 3epository 0imite" (4S30) an" 'entra( 3epository Ser-ices 0imite" ('3S0) pro-i"ing "ua( !enefit ser-ices *herein the in-estors can use the !ro%erage ser-ices of the company for e.ecuting the transactions an" the "epository ser-ices for sett(ing them$ &he company has E2 !ranches ser-icing aroun" F) 00)000 customers$ =ota%street$com the on(ine "i-ision of =ota% Securities 0imite" offers Internet Bro%ing ser-ices an" a(so on(ine IPB an" Mutua( 9un" In-estments$ =ota% Securities 0imite" manages assets o-er F@00 crores un"er Portfo(io Management Ser-ices (PMS) *hich is main(y to the high en" of the mar%et$ =ota% Securities 0imite" has ne*(y (aunche" 6=ota% Infinity7 as a "istinct "iscretionary Portfo(io Management Ser-ice *hich (oo%s into the mi""(e en" of the mar%et$
India B*ll$(
In"ia!u((s is In"iaMs (ea"ing retai( financia( ser-ices company *ith @@ (ocations sprea" across LE cities$ Its si;e an" strong !a(ance sheet a((o*s pro-i"ing -arie" pro"ucts an" ser-ices at -ery attracti-e prices) our o-er @G0 '(ient e(ationship Managers are "e"icate" to ser-ing your uni+ue nee"s$ In"ia!u((s is (ea" !y a high(y regar"e" management team that has in-este" crores of rupees into a *or(" c(ass Infrastructure that pro-i"es rea(-time ser-ice & 2E/@ access to a(( information an" pro"ucts$ &he India.*ll$ Profe$$ional Net,ork offers rea(-time prices) "etai(e" "ata an" ne*s) inte((igent ana(ytics) an" e(ectronic tra"ing capa!i(ities) right at your finger-tips$ &his po*erfu( techno(ogy is comp(emente" !y our %no*(e"gea!(e an" customer focuse" e(ationship Managers$ In"ia!u((s offers a fu(( range of financia( ser-ices an" pro"ucts ranging from 2+uities) 3eri-ati-es) 3emat ser-ices an" Insurance to enhance *ea(th an" to achie-e the financia( goa(s$
su!-!ro%ing unit) *ith just t*o peop(e running the sho*$ 9ocus on customer-firstattitu"e) ethica( an" transparent !usiness practices) respect for professiona(ism) research-!ase" -a(ue in-esting an" imp(ementation of cutting-e"ge techno(ogy ha-e ena!(e" it to !(ossom into a thousan"-mem!er team$ &he institutiona( !usiness unit has re(ationships *ith se-era( (ea"ing foreign institutiona( in-estors (9IIs) in the QS) Q=) 1ong =ong an" Singapore$ In a recent me"ia report MBSt *as rate" as one of the top-F0 !ro%ers in terms of !usiness transacte" for 9IIs$ &he retai( !usiness unit pro-i"es e+uity in-estment so(utions to more than G0)000 in-estors through 2@0 out(ets spanning FG0 cities an" 22 states$ MBSt pro-i"es ,"-ice-Base" Bro%ing) Portfo(io Management Ser-ices (PMS)) 2Bro%ing Ser-ices) 3epository Ser-ices) 'ommo"ities &ra"ing) an" IPB an" Mutua( 9un" In-estment ,"-isory Ser-ices$ Its <a(ue PMS Scheme ga-e a FL0T post-ta. return for the year en"e" March 200E$ In ,siaMoney Bro%ers Po(( 200D MBSt has !een rate" as the Best 3omestic esearch 1ouse- Mega 9un"s )*hi(e in 2000 an" 2002 it has !een rate" as the Best 3omestic 2+uity esearch 1ouse an" Secon" !est amongst In"ian Bro%erage firms respecti-e(y$
Para#eter$
O'ening =ee &ra"ing 3emate ,/' ,/c @G0 @G0 2G0 L00 G00 @00 4I0 4I0 4I0 2G0 4I0
Brokerage 3e(i-ery S+uare Bff 0$E0 0$@G 0$E0 0$20 0$G9 0$G0 0$0I 0$FI 0$F0 0$0G 0$0L 0$FG
S"arek"an ICICI &irect India B*ll$ 9 Pai$a %otak Street H&=C Sec*ritie$
I'I'I Ban%) Q&I) BB') 139') 'ity Ban% =ota% Ban%) 'ity Ban% 139' & Bther Ban%
7.G &ifferent t!'e$ of co#'an! in+ol+ed in online trading( o o o o o o o o o 139' S2'Q I&I2S 0IMI&23 I'I'I :2B & ,32 0IMI&23 =B&,= S& 22& 0IMI&23 9I<2 P,IS, S2'Q I&I2S 0IMI&23 I43I,BQ00S S2'Q I&I2S 0IMI&23 MB42RPB 2 S2'Q I&I2S 0IMI&23 S1, 2 =1,4 S2'Q I&I2S 0IMI&23 52BJI& S2'Q I&I2S B&12 S$
9PAISA.COM &ra"e in BS2)4S2 &ra"e in mu(ticommo"ity e.change &ra"e in nationa( commo"ity e.change ,ccess to research an" technica( ana(ysis
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<-S,&) internet connecti-ity Bn(ine !ac% office) soft*are & support 0i!era( "eposit) margin & e.posure terms %OTA% STREET.COM 2asy e+uities 2asy mutua( fun" 3eri-ati-es esearch on sms Margin finance 'a(( & tra"e 2asy IPB o-er phones SHARE%HAN.COM '(assic account &ra"ing on 4S2 Spee" tra"e Spee" tra"e p(us Sing(e screen tra"ing termina( ea(-time streaming +uotes
0i-e tic-!y-tic intra-"ay charting Instant or"er/tra"e confirmations in the same *in"o* 1ot %eys simi(ar to a !ro%er?s termina( Bac%-up faci(ity to p(ace tra"es on "irect phone (ines IN&IABULLS.COM &ra"e in e+uity &ra"ing through termina( &ra"e in "eri-ati-es Bac%-up faci(ity to p(ace tra"es on "irect phone (ines Spee" tra"e p(us Bff(ine support through messenger ,ccess research an" technica( research
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B*n transaction engine 1igh transaction spee" H&=C SECURITIES.COM &ra"ing on 4S2 Mutua( fun" Bn(ine !ac% office) soft*are & support 0i-e +uotes up"ate system
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S,ot Anal!$i$
Introd*ction
S:B& ,na(ysis#is a#strategic p(anning#metho" use" to e-a(uate the#Strengths)#:ea%nesses)#Bpportunities) an"#&hreats in-o(-e" in a#project#or in a#!usiness#-enture$ It in-o(-es specifying the o!jecti-e of the !usiness -enture or project an" i"entifying the interna( an" e.terna( factors that are fa-ora!(e an" unfa-ora!(e to achie-ing that o!jecti-e$ , S:B& ana(ysis must first start *ith "efining a "esire" en" state or o!jecti-e$ , S:B& ana(ysis may !e incorporate" into the #strategic p(anning mo"e($ ,n e.amp(e of a strategic p(anning techni+ue that incorporates an o!jecti-e-"ri-en S:B& ana(ysis is#Strategic 'reati-e ,na(ysis#(S',4)$ Strategic P(anning) inc(u"ing S:B& an" S',4 ana(ysis) has !een the su!ject of much research$ Strengths# attri!utes of the person or company that are he(pfu( to achie-ing the o!jecti-e$ @ea%nesses# attri!utes of the person or company that are harmfu( to achie-ing the o!jecti-e$ Opportunities##e!ternal#con"itions that are he(pfu( to achie-ing the o!jecti-e$ Threats##e!ternal#con"itions *hich cou(" "o "amage to the !usinessMs performance$
I"entification of S:B& is essentia( !ecause su!se+uent steps in the process of p(anning for achie-ement of the se(ecte" o!jecti-e may !e
90
"eri-e" from the S:B&$ 9irst) the "ecision ma%ers ha-e to "etermine *hether the o!jecti-e is attaina!(e) gi-en the S:B&$ If the o!jecti-e is 4B& attaina!(e a "ifferent o!jecti-e must !e se(ecte" an" the process repeate"$ &he S:B& ana(ysis is often use" in aca"emia to high(ight an" i"entify strengths) *ea%nesses) opportunities an" threats$ It is particu(ar(y he(pfu( in i"entifying areas for "e-e(opment$
&he S:B&-(an"scape gra!s "ifferent manageria( situations !y -isua(i;ing an" foreseeing the "ynamic performance of compara!(e o!jects
91
accor"ing to fin"ings !y Bren"an =itts) 0eif 2"-insson an" &or" Be"ing (2000)$ 'hanges in re(ati-e performance are continuous(y i"entifie"$ Projects (or other units of measurements) that cou(" !e potentia( ris% or opportunity o!jects are high(ighte"$ S:B&-(an"scape a(so in"icates *hich un"er(ying strength/*ea%ness factors that ha-e ha" or (i%e(y *i(( ha-e highest inf(uence in the conte.t of -a(ue in use
Strengt"$(
:e((-maintaine" infrastructure$ 3e"icate") Inte((igent an" 0oya( staff$ Bn-(ine &ra"ing pro"ucts$ 0o*est !ro%erage an" other charges *$r$t$ 'ompetitors$
92
&he !est in-estment a"-ice correct up to @0-90 T through "e"icate" esearch an" reports$
:i"e pro"uct range to ena!(e the c(ients to choose the !est a(ternati-e$ Bne of the !est 3Ps in In"ia$ , positi-e image in the e.isting c(ients$ 0arge retai( customer !ase Best on(ine soft*are B"in *hich *ithin G secon" management information system is +uite goo" as compare to competitors
@eakne$$e$(
0ess a*areness in the mar%et$ &ime consuming process for account opening) reso(-ing the pro!(ems of the customers) etc$ Ser-ice +ua(ity is not maintaine" accor"ing(y ho* they are promote"$
93
'oncentrate more on 14I (1igh 4et-*orth In"i-i"ua() c(ient emp(oyee attrition rate is high especia((y B$3$B$ & 3ea(ers a(( !ranches are not *or%ing in a synchroni;e" *ay
O''ort*nitie$(
0arge primary mar%et to sit as a !oo% runner for the other companies just (i%e =ota% securities (t"$ that runs the !oo%s of share ho("ings for many companies S(ope of stoc% mar%et to*ar"s "e(i-ery !ase" transactions$ there are on(y 2 T to DT peop(es are in-esting in share mar%et so huge opportunities are there 0arge potentia( mar%et for "e(i-ery an" intra-"ay transactions$ Bpen interest of the peop(e to enter in stoc% mar%et for in-esting$ ,ttract the customers *ho are "issatisfie" *ith other !ro%ers & 3Ps$ ,n in"irect opportunity generate" !y the mar%et from its !u((ishness$
T"reat$(
3ecreasing rates of !ro%erage in the mar%et$
94
Increasing competition against other !ro%ers & 3Ps$ Poor mar%eting acti-ities for ma%ing the company %no*n among the customers , threat of (oosing c(ients for any %in" of *ea%ness of the company$ In"irect threat from insta!(e stoc% mar%et) i$e$) (o*/no profit of Share%han?s c(ients *ou(" (ea" them to go for other !ro%er/3P$
Pa$t Perfor#ance
95
96
&ata Anal!$i$
&he first an" simp(est ana(ytica( step in "ata ana(ysis is to de$cri.e the "ata Y for e.amp(e) summari;e its statistica( attri!utes (such as means an" stan"ar" "e-iations)) -isua((y re-ie* it using charts an" graphs) an" (oo% at the "istri!ution of -a(ues of the fie("s in your "ata$ But "ata "escription a(one cannot pro-i"e an action p(an$ Rou must !ui(" a pre"icti-e mo"e( !ase" on patterns "etermine" from %no*n resu(ts) then test that mo"e( on resu(ts outsi"e the origina( samp(e$ , goo" mo"e( shou(" ne-er !e confuse" *ith rea(ity (you %no* a roa" map isn?t a perfect representation of the actua( roa")) !ut it can !e a usefu( gui"e to un"erstan"ing your !usiness$
97
3ata ana(ysis can !e use" for !oth c(assification an" regression pro!(ems$ In c(assification pro!(ems you?re pre"icting *hat category something *i(( fa(( into 8 for e.amp(e) *hether a person *i(( !e a goo" cre"it ris% or not) or *hich of se-era( offers someone is most (i%e(y to accept$ In regression pro!(ems you?re pre"icting a num!er such as the pro!a!i(ity that a person *i(( respon" to an offer$
:ith the fa(( in the turno-er in the 2+uity segment !y o-er D0 per cent since ,pri() re-enue of !ro%ing houses ha-e ta%en a major hit$ 'ompare" *ith the pre-ious fe* +uarters) the net profits of many (ea"ing !ro%ing houses ha-e near(y ha(-e" "espite the re-enues "ec(ining margina((y$ &he resu(ts poste" !y !ro%ing firms ha-e !een e.treme(y poor in (ine *ith the mar%et con"itions) ha-ing reporte" either a fa(( in net profit or) at !est) on(y a margina( rise in their !ottom(ine for the perio"$ &he *orst-hit seems to !e the !ro%ing firms *hich are facing cha((enges in their "ec(ining !usiness apart from stringent re(uctance of financia( institutions to (en" them money for *or%ing capita($ Bro%ing firms ha" an e.ce((ent ra((y in the pre-ious fisca( an" thus ha" e.tra-agant p(ans of increasing their footho(" across nation) an" some of them e-en g(o!a((y$ :ith the current financia( me(t"o*n *or("*i"e) most of them ha-e not on(y put their e.pansion p(ans on ho(" !ut a(so are s(o*ing "o*n in current !usinesses$ &hese firms *ere on a gro*th spree) a""ing !ranches an" peop(e across cities$ &he augmentation *as a(so "ri-en !y the infusion of fun"s !y the !ig pri-ate e+uity an" foreign p(ayers *anting to in-est in these !ro%ing outfits$ &he sma((er !ro%ing outfits too% a greater hit) as they strugg(e" to meet their margin re+uirements "ue to (i+ui"ity constraints$ ecent(y) tra"ing termina(s of 9G !ro%er mem!ers *ere "eacti-ate" in the 9&B segment an" 29 "eacti-ations occurre" in the cash segment$ In Septem!er) the termina(s of DL !ro%er mem!ers *ere "eacti-ate" *hereas in ,ugust it *as on(y FF$ &here *ere IIG acti-e tra"ing mem!ers in the 9&B segment an" 9IE in the cash segment on 4S2 in Bcto!er$ &he mar%et scene appears !(ea% for the securities firms$ Juite e.pecte") these negati-e sentiments are ref(ecting in the stoc% prices of !ro%ing firms$ Most of them ha-e fa((en !y more than @GT from their highs
98
ear(y this year$ ,fter !an%ing stoc%s) !ro%ing outfits ha-e face" the !runt in the current financia( turmoi($ :hen the macro con"itions *ere fine) in-aria!(y stoc% mar%ets "i" perform *e(($ Simi(ar(y) the "o*ntren" in the economy is a(so ref(ecte" in the stoc% mar%et$
&eri+ati+e Re'ort
0$9DT) *hi(e Minify future?s open interest "ecrease" !y D$EIT) as mar%et c(ose" at D0EL$@G (e-e(s$ 4ifty January future is tra"ing at premium of L$IG points against premium of F0$2G points in pre-ious tra"ing session$ :hi(e 9e!ruary future is tra"ing at premium of F@$D0 points$ P' -BI is at the same (e-e(s of F$FF$ 3ue to !ui(" up in ca(( as *e(( as put options$ I< of at the money option is E0$DGT$ 1istorica( -o(ati(ity has re"uce" from GL$9GT to GG$2ET$ Stoc%s *hich are tra"ing at "ecent positi-e cost of carry are ,J2S12KPB) 9S0) BI43,0,5 B) I9'I an" '1,MB092 & $
99
3ifferent customers ha-e the "ifferent o!jecti-es/purpose for opening the account in ,nge( Bro%ing 0t"$) as per the sur-ey "one !y us is as fo((o*# O.:ecti+e for ANC o'ening Co##odit! In+e$t#ent IPO Trading In+e$t#ent > Trading In+e$t#ent Trading > IPO IPO > Trading In+e$t#ent > IPO Ot"er$ No. of C*$to#er$ 0 07H 89 589 9H 5G 70 H 71
Commodity In'estment I() *radin+ In'estment # *radin+ In'estment *radin+ # I() I() # *radin+ In'estment # I() )t&ers
101
I"O ()%
Others *%
+ommodity ,%
Trading #$%
Investment &'%
=inancial Re$tr*ct*ring
,nge( Bro%ing 0t"$ pro-i"es the ser-ice of 9inancia( ,s per the sur-ey the chart is as fo((o*s# estructuring$
102
.,,
-,,
$,,
*,,
),,
#,,
3eries(
&,,
',,
(,,
Online =>O
Onlin e IPO
Onlin e M=
4o
Res
Res
Res
Res
Res
Res
4o
G00
G0000
4o 4o Res
Res 4o Res
4o 4o Res
-------------
H&=C Motilal
103
,/c) 'ommo"ity) 3P) PMS 5roun" ,/c) Bn(ine ,/c) 'ommo"ity) 3P)M9 2-Bro%ing) Insurance 5roun" ,/c) 2Bro%ing Insurance) M9) 2-Bro%ing) 5roun" ,/c 5roun" ,/c) 2Bro%ing) Mutua( 9un"
Res
Res
Res
4o
4o
2G0
-----
Res Res
Res 4o
4o Res
4o 4o
Res 4o
G00 G00
G000 G0000
Res
Res
Res
Res
Res
G00
------
Res
Res
Res
Res
Res
@I0
F0000
Li#itation$
3efinition of perfection "iffers from in"i-i"ua(s to in"i-i"ua(s$ 4o matter ho* meticu(ous one is) the stu"y that is comp(ete(y !ase" on responses from a -ast -ariety of peop(e cannot !e free from (imitations$ &hough the present stu"y aime" to achie-e the a!o-e-mentione" o!jecti-es in fu(( earnest an" accuracy) it *as hampere" "ue to certain (imitations$ Some of the (imitations of this stu"y may !e summari;e" as fo((o*s# Se(ection of the peop(e *ho are un"er consi"eration as samp(e for the stu"y may not !e the !est samp(e se(ecte"$ Samp(e si;e *as (imite" "ue to the (imite" perio" a((ocate" for the sur-ey$
104
&he se(ection of peop(e to co-er the -arious types of commo"ity tra"ing ranging from agro pro"ucts to energy an" meta(s (i%e go(" an" si(-er *as te"ious an" time consuming$ 5etting accurate responses from the respon"ents "ue to their inherent Pro!(ems) persona(ity traits an" moo" f(uctuations *as a -ery "ifficu(t tas%$ Some respon"ents ha" to !e re-contacte" as per their con-enience of time$ Some of the area in *hich the sur-ey is carrie" out *as -ery un 8 hygienic an" o-er cro*"e"$
105
Some "ata of customer is not proper$ 0i%e their contact num!er & a""ress$
=inding$
In are) *hich *e *are gi-en out of I00 c(ients *e ha-e most(y foun" that they are not intereste" in the financia( portfo(io restructuring$ :e foun" 90$@T no intereste" an" 9$DT are intereste" in the city$ Most of the c(ients *hom) *e met 5o-ernment emp(oyees) !usinessman) 1ote(s) ma((s) restaurants an" chai*a(a a(so$ :hat a!out their intereste" in tra"ing$ Most of the c(ients in-este" in the IPB) &ra"ing) In-estment) future an" options an" commo"ity mar%ets$ But of I00 Most of the c(ients Intereste" in tra"ing$
eason for not in-esting in ,nge( !ro%ing$> easons for no in-esting Improper ser-ices 0ac% of communication Margin an" (imit issue Mar%et crisis 4o of espon"ents FG0 F00 2G0 D00
106
,) )$ -.%(),D.,*%
Improper ser'ices 19% mar!et crisis 3/% lac! of communication 13% mar+in and limit issue 31%
No. of re$'ondent$
D00 G0 F00 D0 20 20 200 G00 E00
107
S*gge$tion(
9rom the a!o-e chart *e can see that -arious customer are a!out on(ine tra"ing) on the other han" fe* peop(e a*are a!out ange( go(" an" its prepai" !ro%erage ser-ices$ 'ompany shou(" gi-e focus on on(ine customer an" try to gi-e more information a!out ange( go(" an" prepai" to these e.isting c(ients an" create interest among them to ta%e a"-antage of these ne* ser-ices$
108