HEDGE EQUITIES LTD.

KOCHI

A SUMMER INTERN REPORT

Submitted by

RASHID LATHEEF

Roll No
SGI18MBA85

in partial fulfilment of Summer Internship for the award of the degree

of

MASTER OF BUSINESS ADMINISTRATION

APJ Abdul Kalam Technological University

SREE NARAYANA GURU INSTITUTE OF SCIENCE AND

TECHNOLOGY

ERNAKULAM
AUGUST 2019
 SNGIST GROUP OF INSTITUTIONS, NORTH PARAVUR

FACULTY OF MANAGEMENT STUDIES

CERTIFICATE

This is to certify that this report of internship done at “HEDGE EQUITIES LTD,
PALARIVATTOM, COCHIN”, submitted by RASHID LATHEEF (SGI18MBA85) in partial
fulfilment of summer internship for the award of the degree of MASTER OF BUSINESS
ADMINISTRATION of APJ Abdul Kalam Technological University during 2018-2020 is a
bonafide record of the work done by her under my supervision and guidance. This certificate is not
issued to endorse the opinion and results expressed in this report.

Prof. [Dr]. Vinosh Peter Prof.[Dr]. M.V. Monica

Internship Guide Dean, FMS
 ACKNOWLEDGMENT

First and foremost, I thank lord almighty for his showers of blessings that lead to the successful
completion of my internship report. It gives me immense pleasure to present this report.

I express my sincere gratitude and thanks to Dr. M.SIVANANDAN , Principal, SNGIST for his
support and guidance’s for the successful completion of this work.

I express my sincere thanks to the Dean Prof. [Dr.] M.V.MONICA, Faculty of Management
Studies SNGIST Group of Institution, for her support towards the completion of the work.

I wish to express my heartfelt gratitude to Prof.[Dr.] SAGINI THOMAS MATHAI, Head Of

Department of FMS for providing opportunity to do internship.

I express my sincere gratitude to Prof.[Dr.] VINOSH PETER , faculty member SNGIST for his
valuable guidance for the completion of this study.

I express my sincere and heartfelt thanks to Mr. SOORAJ KINARATH , Hedge Equities.Ltd,
Kochi , who gave me the opportunity to do the internship under his guidance.

I would like to extend my heartfelt gratitude to all officials and employees of Hedge Equities Ltd,
Kochi for being very helpful and suggestive in giving the valuable information , regarding their
respective concerns, for the successful completion of the study.

Finally, I thank my parents, friends and relatives for their help and encouragement throughout the
Internship.

Rashid Latheef
 DECLARATION

I RASHID LATHEEF, student of SREE NARAYANA GURU INSTITUTE OF SCIENCE AND

TECHNOLGY, N.PARAVUR Hereby declare that the internship done at HEDGE EQUITIES
LTD. KOCHI, has been prepared by me under the guidance of Prof.[Dr.] VINOSH PETER,
Faculty Member SNGIST submitted for the requirement of the award of the Post Graduate Degree
of MBA is a record of original work done by me during the academic year 2018-2020.
I also declare that this internship report has not been submitted previously, fully or
partially for the award of any Degree, Title or Organization.

Place: N.PARAVUR RASHID LATHEEF

Date: 06/12/2019
 TABLE OF CONTENT

SL.NO CONTENT PAGE NO

1 Introduction 1

2 Organizational 21
Analysis

3 Positioning of Intern 50
and His role

4 Weekly Report 52

5 Suggestion and 60
Conclusion
 LIST OF TABLE

SL.NO CONTENT PAGE NO

53
1 Weekly Report 1

54
2 Weekly Report 2

55
3 Weekly Report 3

56
4 Weekly Report 4

57
5 Weekly Report 5

58
6 Weekly Report 6

59
7 Weekly Report 7
 LIST OF FIGURES

SL.NO CONTENT PAGE NO

4
1 Factors Affecting
Industry Analysis

26
2 Organizational Structure

28
3 Hedge Group Chart

35
4 Finance Department

38
5 Marketing Department

40
6 System Department

42
7 Human Resource
Department
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CHAPTER 1

INTRODUCTION
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1. INTRODUCTION

As a part of our curriculum in APJ Abdul Kalam Technology University (Trivandrum, Kerala)
MBA Programme, we need to do an internship for 45 days to prepare an internship report.
The main aim of internship is to gain an organizational familiarization and in depth knowledge of
the functioning of various departments. For this, a study has been conducted in a company named
Hedge Equities Ltd.. Organization structure is an indispensable means to the end of the business
performance and may even destroy it. This fact makes it appropriate a thorough organization study.
This study aims to collect the details on various departments like Marketing, Finance, Human
Resource, and Operations etc. It will also guide to know the Organization hierarchy chart and the
relationship between various departments when it comes to the synchronization of its functions. It
will also help in understanding the process flow in each and every department to understand the
working in each department.
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a) DUTIES AND RESPONSIBILITIES ASSIGNED TO THE INTERN

As an intern I was obligated to demonstrate the highest level of professionalism, which include
arriving on time for designated work and dressing to the standards of the organization and the work
being performed, to respect the standards of the organization and the work being performed, to
respect the organization’s reporting structure and follow the policies and procedures of the
organization, thereafter to complete and submit the reports.

● To do a brief study about the organisation.

● Better understanding about each department and its functions.
● SWOT analysis of telecom sector.
● To assist the department managers in their work.
● To assist departmental staffs.
● To analyse charts in order to buy and sell the shares.
● To assist in checking the market trends.

b) DURATION
Working period: 26-06-2019 to 09 -08- 2019
Working hour: 11:00am-1:00pm
c) DEPARTMENT ALLOTTED DETAILS OF REPORTING MANAGER
● Finance

REPORTING TO: SREEHARI

RESEARCH ANALYST
d) BRIEF DETAILING ABOUT THE WHOLE INTERNSHIP
The internship was done on the topic technical analysis which is an integral part in taking
decisions on buying and selling of shares. We earned a lot of knowledge about the stock market and
the various factors affecting the stock exchange.

1.1 OBJECTIVES OF INTERNSHIP

● To work as an intern and to get familiarize in all functions of the company.

● To acquire a basic idea about the working of HEDGE EQUITIES LTD..

Moreover than any other objective the finite objective of my internship is to

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● To gain a transferrable skill that, I can apply to any organization that currently I am intern or to be
work in the future course of time.

1.2 INDUSTRIAL ANALYSIS

The second stage of fundamental analysis is consisting of detailed analysis of specific industry, its
characteristics, past record and future prospects. The purpose of industry analysis is to identify
those industries which are likely to grow in the future.

Figure 1.1: Factors affecting Industry Analysis

a) Company Analysis

At the company level, fundamental analysis may involve examination of financial data, business
concept and competition. The fundamental analysis uses the quantitative information from financial
statement to make investment decision. Company analysis is a study of variables that influence the
future of a firm both qualitatively and quantitatively. It is a method of assessing the competitive
position of a firm, its earning and profitability, the
efficiency with which it operates its financial position and its future with respect to earning of its
shareholders.
b) Company History

The Indian retail brokerage industry consists of companies that primarily act as agents for the
 5
buying and selling of securities (e.g. stocks, shares, and similar financial instruments) on a
commission or transaction fee basis. It has two main interdependent segments: Primary market and
the Secondary market. Now this market is extended to fields like currency, commodity, mutual
fund, insurance etc.
The Indian equity brokerage industry thrived on the back of equity markets' sustained Bull
Run during 2003-07. Although high competitive pressure meant continuous compression of
brokerage commissions and low electronic penetration kept operating costs high, industry revenue
was growing. Furthermore, the industry attracted domestic and foreign investment interest at high
valuations. During this time, many of the key players started expanding their portfolio of services to
include wealth management and advisory services, sale of insurance and mutual fund products,
consumer financing and so on.
However, post-2008, the economic downturn - muted trading turnover, relentless
competitive pressure and decreasing margins, continued high operating costs and high margin
requirements - had put the industry under pressure. Profitability is muted and the major players are
under pressure to build scale. Expansion of scale and investments into technological systems has the
potential to lead the top brokerage firms into paths of higher growth, but the current economic
climate is clearly against heavy investments.
The basic function of a brokerage firm is to execute buy and sell orders for clients.
Traditionally these firms have offered the investigation of the quality and the possibilities of
investing in a variety of investment products. It is still accustomed for brokerage firms to offer
information about possible investments free of charge. This activity of bringing free of charge stock
investment reports is one of the main tools that are utilized by brokerage houses to compete against
other firms and to investors it continues to be an important service.
Features:-
A large share of the brokerage firms have moved to an online format. The added convenience and
personal attention paid to the small investor has resulted in a large influx of activity. In addition, the
fact that the online resources offer up-to-the-minute pricing and immediate trade make their format
appealing to the modern user. Discounted commissions have lessened the price of trades, giving
access to a wider swath of people and adding liquidity to the market. The role of the stock
brokerage firm is ever-changing and proves to be a boon to the future of the financial industry.
1.3 Financial Services
Financial services are the economic services provided by the finance industry, which encompasses
a broad range of organizations that manage money, including credit unions, banks, credit card
companies, insurance companies, finance companies, stock brokerages, investment funds and some
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government sponsored enterprises.
The Indian financial services industry is characterized by increasingly vibrant public- and
private-sector institutions. Though the industry continues to be dominated by public-sector
institutions, particularly in insurance and asset management, there is a growing list of private
enterprises, competing fiercely both among themselves and with the public entities.
Recent economic growth has given rise to a growing consumer middle class—”Middle
India”—with a strong credit culture and increasing financial sophistication. Many of the goods and
services these newly affluent consumers seek—such as autos, housing, and retirement planning—
indicate a significant role for financial services. On the institutional side, as Indian companies
continue to grow and globalize they will likely require increasingly sophisticated services from the
industry. Strong demand from consumers and businesses drove India’s growth over the last two
decades and are expected to continue to set the pace in the future.
History of Financial Services
The term "financial services" became more prevalent in the United States partly as a result
of the Gramm-Leach-Bliley Act of the late 1990s, which enabled different types of companies
operating in the U.S. financial services industry at that time to merge.
Companies usually have two distinct approaches to this new type of business. One approach
would be a bank which simply buys an insurance company or an investment bank, keeps the
original brands of the acquired firm, and adds the acquisition to its holding company simply to
diversify its earnings. Outside the U.S. (e.g., in Japan), non-financial services companies are
permitted within the holding company. In this scenario, each company still looks independent, and
has its own customers, etc. In the other style, a bank would simply create its own brokerage division
or insurance division and attempt to sell those products to its own existing customers, with
incentives for combining all things with one company.
1.4 Financial Intermediaries

A financial intermediary is a financial institution that connects surplus and deficit agents. The
classic example of a financial intermediary is a bank that consolidates deposits and uses the funds to
transform them into loans. Through the process of financial intermediation,
certain assets or liabilities are transformed into different assets or liabilities As such; financial
intermediaries channel funds from people who have extra money or surplus savings (savers) to
those who do not have enough money to carry out a desired activity (borrowers).

A financial intermediary is typically an institution that facilitates the channeling

of funds between lenders and borrowers indirectly. That is, savers (lenders) give funds to an
intermediary institution (such as a bank), and that institution gives those funds to spenders
 7

(borrowers). This may be in the form of loans or mortgages. Alternatively, they may lend the
money directly via the financial markets, which is known as financial disintermediation.

Advantages

There are two essential advantages from using financial intermediaries:

1. Cost advantage over direct lending/borrowing

2. Market failure protection the conflicting needs of lenders and borrowers are reconciled, preventing
market failure.

Types

Financial intermediaries include

 Banks

 Building societies

 Credit unions
 Financial advisers or brokers
 Insurance companies
 Collective investment schemes
 Pension funds
1.5 Financial Market

A financial market is a market in which people and entities can trade financial securities,
commodities and other fungible items of value at low transaction costs and at prices that
reflect supply and demand. Securities include stocks and bonds, and commodities include precious
metals or agricultural goods.

There are both general markets (where many commodities are traded) and specialized
markets (where only one commodity is traded). Markets work by placing many interested buyers
and sellers, including households, firms, and government agencies, in one "place", thus making it
easier for them to find each other. An economy which relies primarily on interactions between
buyers and sellers to allocate resources is known as a market economy in contrast either to
a command economy or to a non-market economy such as a gift economy.

In finance, financial markets facilitate:

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 The raising of capital (in the capital markets)

 The transfer of risk (in the derivatives markets)
 Price discovery
 Global transactions with integration of financial markets
 The transfer of liquidity (in the money markets)
 International trade (in the currency markets)

Money Market
As money became a commodity, the money market became a component of the financial markets
for assets involved in short-term borrowing, lending, buying and selling with original maturities of
one year or less. Trading in the money markets is done over the counter, is wholesale. Various
instruments exist, such as Treasury bills, commercial paper, bankers' acceptances, deposits,
certificates of deposit, bills of exchange, repurchase agreements, federal funds, and short-lived
mortgage-, and asset-backed securities. It provides liquidity funding for the global financial system.
Money markets and capital markets are parts of financial markets. The instruments bear differing
maturities, currencies, credit risks, and structure. Therefore they may be used to distribute the
exposure.

Functions:-
The money market functions are:-
 Transfer of large sums of money
 Transfer from parties with surplus funds to parties with a deficit
 Allow governments to raise funds
 Help to implement monetary policy
 Determine short-term interest rates

Characteristics of Money Market

 Highly organized banking system

 Presence of a central bank

 Availability of proper credit instrument

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 Existence of sub-brokers

 Sufficient resources

 Existence of secondary markets

Composition of Money Market

The money market consists of following sub market.
 Call money market

 Commercial bills market

 Acceptance market

 Treasury bill market

 Call money market

The call money market refers to the market for extremely short period loans; say one day to
fourteen days. These loans are repayable on demand at the option of either the lender or the
borrower.
Advantages of Call money market
 High liquidity

 High profitability

 Maintenance of statutory reserve ratio (SRR)

 Safe and cheap

 Assistance to central bank operation

Drawbacks of Call money market

 Uneven development

 Lack of integration

 Volatility in call money rates

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 Commercial bills market

An instrument in writing containing an unconditional order, signed by the maker, directing a certain
person to pay a certain sum of money only to ,or the order of certain person or to the bearer of the
instrument.

Types of Bills
Many types of bills are in circulation in a bill market are:-
 Demand bills

Demand bills are also called sight bills. These bills are payable immediately as soon as they are
presented to the drawer no time of payment is specified and hence they are payable at sight.
 Documentary bills

When bills have to be accompanied by document of title to goods like railway receipt, lorry
receipt, bill of lading etc. The bills are called documentary bills.
 Inland and foreign bills

Inland bills are those drawn upon a person resident in India and are payable in India. Foreign
bills are drawn outside India and they may be payable either in India or outside India.
 Export bills and import bills

Export bills are those drawn by Indian exporters on imports outside India and importer bills are
drawn on Indian importers in India by exporters outside India.
 Indigenous bills

Indigenous bills are those drawn and accepted according to native custom or usage of trade.
Advantages of Commercial bills market
 Liquidity

 Self-liquidating and negotiable asset

 Certainty of payment

 Ideal investment

 Simple legal remedy

 High and quick yield

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 Easy central bank control

Drawbacks of Commercial bills market

 Absence of bill culture

 Absence of rediscounting among banks

 Stamps duty

 Absence of secondary market

 Difficulty in ascertaining genuine trade bills

 Limited foreign trade

 Absence of acceptance service

 Attitude of banks

 Treasury bill

A treasury bills nothing but a promissory note issued by the Govt. under discount for a
specified period stated therein. The Govt .promises to pay the specified amount mentioned therein
to the bearer of the instrument on the due date.
Treasuries bills are issued only by the RBI on behalf of the govt. TB are issued for meeting
temporary govt. deficits.
Capital Market
The capital market is the market for securities, where companies and the
government can raise long-term funds. The capital market includes the stock market and
the bond market. The capital markets consist of the primary market, where new issues
are distributed to investors, and the secondary market, where existing securities are
traded.
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Importance
1. Link between Savers and Investors:

The capital market functions as a link between savers and investors. It plays an important
role in mobilizing the savings and diverting them in productive investment. In this way, capital
market plays a vital role in transferring the financial resources from surplus and wasteful areas to
deficit and productive areas, thus increasing the productivity and prosperity of the country.

2. Encouragement to Saving:

With the development of capital, market, the banking and non-banking institutions provide
facilities, which encourage people to save more. In the less- developed countries, in the absence of a
capital market, there are very little savings

and those who save often invest their savings in unproductive and wasteful directions, i.e., in real
estate (like land, gold, and jewelers) and conspicuous consumption.

3. Encouragement to Investment:

The capital market facilitates lending to the businessmen and the government and thus
encourages investment. It provides facilities through banks and nonbank financial institutions.
Various financial assets, E.G., shares, securities, bonds, etc., induce savers to lend to the government
or invest in industry. With the development of financial institutions, capital becomes more mobile,
interest rate falls and investment increases.

4. Promotes Economic Growth:

The capital market not only reflects the general condition of the economy, but also
smoothens and accelerates the process of economic growth. Various institutions of the capital
market, like nonbank financial intermediaries, allocate the resources rationally in accordance with
the development needs of the country. The proper allocation of resources results in the expansion of
trade and industry in both public and private sectors, thus promoting balanced economic growth in
the country.
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5. Stability in Security Prices:

The capital market tends to stabilize the values of stocks and securities and reduce the
fluctuations in the prices to the minimum. The process of stabilization is facilitated by providing
capital to the borrowers at a lower interest rate and reducing the speculative and unproductive
activities.

6. Benefits to Investors:

The credit market helps the investors, i.e., those who have funds to invest in long-term
financial assets, in many ways:

(a) It brings together the buyers and sellers of securities and thus ensure the marketability of
investments,

(b) By advertising security prices, the Stock Exchange enables the investors to keep track of their
investments and channelize them into most profitable lines,

(c) It safeguards the interests of the investors by compensating them from the Stock Exchange
Compensating Fund in the event of fraud and default.

Indian Capital Market

Since 2003, Indian capital markets have been receiving global attention, especially from
sound investors, due to the improving macroeconomic fundamentals. The presence of a great pool
of skilled labor and the rapid integration with the world economy increased India’s global
competitiveness. No wonder, the global ratings agencies Moody’s and Fitch have awarded India
with investment grade ratings, indicating comparatively lower sovereign risks.
The Securities and Exchange Board of India (SEBI), the regulatory authority for Indian securities
market, was established in 1992 to protect investors and improve the microstructure of capital
markets. In the same year, Controller of Capital Issues (CCI) was abolished, removing its
administrative controls over the pricing of new equity issues. In less than a decade later, the Indian
financial markets acknowledged the use of technology (National Stock Exchange started online
trading in 2000), increasing the trading volumes by many folds and leading to the emergence of
new financial instruments. With this, market activity experienced a sharp surge and rapid progress
 14
was made in further strengthening and streamlining risk management, market regulation, and
supervision.
The securities market is divided into two interdependent segments:

 The primary market provides the channel for creation of funds through issuance of new securities
by companies, governments, or public institutions. In the case of new stock issue, the sale is known
as Initial Public Offering (IPO).
 The secondary market is the financial market where previously issued securities and financial
instruments such as stocks, bonds, options, and futures are traded.

In the recent past, the Indian securities market has seen multi-faceted growth in terms of:

 The products traded in the market, viz. equities and bonds issued by the government and
companies, futures on benchmark indices as well as stocks, options on benchmark indices as well as
stocks, and futures on interest rate products such as Notional 91-Day T-Bills, 10-Year Notional
Zero Coupon Bond, and 6% Notional 10-Year Bond.
 The amount raised from the market, number of stock exchanges and other intermediaries, the
number of listed stocks, market capitalization, trading volumes and turnover on stock exchanges,
and investor population.
 The profiles of the investors, issuers, and intermediaries.

Primary market

The primary market is that part of the capital markets that deals with the issuance of new
securities. Companies, governments or public sector institutions can obtain bonds through the sale
of a new stock or bond issue. This is typically done through a syndicate of securities dealers. The
process of selling new issues to investors is called underwriting. In the case of a new stock issue
this sale is an Initial Public Offering (IPO). Dealers earn a commission that is built into the price of
the security offering, though it can be found in the prospectus. Primary markets create long term
instruments through which corporate entities borrow from capital market.

Features of primary markets are:-

 This is the market for new long term equity capital. The primary market is the market where the
securities are sold for the first time. Therefore it is also called the new issue market (NIM).
 In a primary issue, the securities are issued by the company directly to investors.
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 The company receives the money and issues new security certificates to the investors.
 Primary issues are used by companies for the purpose of setting up new business or for expanding
or modernizing the existing business.
 The primary market performs the crucial function of facilitating capital formation in the economy.
 The new issue market does not include certain other sources of new long term external finance,
such as loans from financial institutions. Borrowers in the new issue market may be raising capital
for converting private capital into public capital; this is known as "going public."
 The financial assets sold can only be redeemed by the original holder.

Methods of issuing securities in the primary market are:

 Public issuance, including initial public offering.

 Rights issue (for existing companies).
 Preferential issue.

IPO (Initial Public Offer)

An initial public offering (IPO) or stock market launch is a type of public offering where
shares of stock in a company are sold to the general public, on a securities exchange, for the first
time. Through this process, a private company transforms into a public company. Initial public
offerings are used by companies to raise expansion capital, to possibly monetize the investments of
early private investors, and to become publicly traded enterprises.

Secondary market

 The secondary market, also called aftermarket, is the financial market in which previously issued
financial instruments such as stock, bonds, options, and futures are bought and sold. Another
frequent usage of "secondary market" is to refer to loans which are sold by a mortgage bank to
investors such as Fannie Mae and Freddie Mac. The term "secondary market" is also used to refer to
the market for any used goods or assets, or an alternative use for an existing product or asset where
the customer base is the second market (for example, corn has been traditionally used primarily for
food production and feedstock, but a "second" or "third" market has developed for use in ethanol
production).
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 With primary issuances of securities or financial instruments, or the primary market, investors
purchase these securities directly from issuers such as corporations issuing shares in an IPO or
private placement, or directly from the federal government in the case of treasuries. After the initial
issuance, investors can purchase from other investors in the secondary market.
 The secondary market for a variety of assets can vary from loans to stocks, from fragmented to
centralized, and from illiquid to very liquid. The major stock exchanges are the most visible
example of liquid secondary markets - in this case, for stocks of publicly traded companies. Most
bonds and structured products trade “over the counter,” or by phoning the bond desk of one’s
broker-dealer. Loans sometimes trade online using a Loan Exchange.
Functions:-
 In the secondary market, securities are sold by and transferred from one investor or speculator to
another. It is therefore important that the secondary market be highly liquid (originally, the only
way to create this liquidity was for investors and speculators to meet at a fixed place regularly; this
is how stock exchanges originated. As a general rule, the greater the number of investors that
participate in a given marketplace, and the greater the centralization of that marketplace, the more
liquid the market.
 Fundamentally, secondary markets mesh the investor's preference for liquidity (i.e., the investor's
desire not to tie up his or her money for a long period of time, in case the investor needs it to deal
with unforeseen circumstances) with the capital user's preference to be able to use the capital for an
extended period of time.
 Accurate share price allocates scarce capital more efficiently when new projects are financed
through a new primary market offering, but accuracy may also matter in the secondary market
because:-
1) price accuracy can reduce the agency costs of management, and make hostile takeover a less
risky proposition and thus move capital into the hands of better managers, and
2) Accurate share price aids the efficient allocation of debt finance whether debt offerings or
institutional borrowing.

Dividends
There are two types of dividends a company can issue: cash and stock dividends. Typically
only one or the other is issued at a specific period of time (either quarterly, bi-annually or yearly)
but both may occur simultaneously. When a dividend is declared and issued, the equity of a
company is affected because the distributable equity (retained earnings and/or paid-in capital) is
 17
reduced. A cash dividend is straightforward.
Rights Issues
A company implementing a rights issue is offering additional and/or new shares but only to
already existing shareholders. The existing shareholders are given the right to purchase or receive
these shares before they are offered to the public. A rights issue regularly takes place in the form of
a stock split, and can indicate that existing shareholders are being offered a chance to take
advantage of a promising new development.

Mergers and Acquisitions

A merger occurs when two or more companies combine into one while all parties involved
mutually agree to the terms of the merge. The merge usually occurs when one company surrenders
its stock to the other. If a company undergoes a merger, it may indicate to shareholders that the
company has confidence in its ability to take on more responsibilities. On the other hand, a merger
could also indicate a shrinking industry in which smaller companies are being combined with larger
corporations.
Spin Offs
A spin off occurs when an existing publicly-traded company sells a part of its assets or
distributes new shares in order to create a newly independent company. Often the new shares will
be offered through a rights issue to existing shareholders before they are offered to new investors.
Depending on the situation, a spin-off could be indicative of a company ready to take on a new
challenge or one that is restructuring or refocusing the activities of the main business.
1.6 Market Size & Characteristics:
The Indian retail brokerage market is showing phenomenal growth. Some of the main
characteristics of the brokerage industry include growth in e-broking; growing derivatives market,
decline in brokerage fee etc. Today, as per NSDL statistics, we have only 2.4 million investors with
demat accounts in the country. Considering various investor combinations that are holding
accounts, we can presume the country has roughly 5-7.5 lakh active investors now. This figure is
unbelievably small compared to the potential number of investors, which is anything between 200
million and 250 million. When we take into consideration the way transaction risk and cost in the
Indian capital market is coming down, there will be a massive surge in the number of investors and
also in volumes. The only way to manage this kind of potential growth is to adopt state-of-the art
trading techniques
The growth of Internet-based trading as a mass trading technique in the country is
unstoppable, going by the indicators available and the signals for the future.
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1.7 Major Stock Brokers in India

HEDGE EQUITIES LTD

Hedge Equities is one of the leading Financial Services Company in India, specialized in offering a
wide range of financial products, tailor made to suit individual needs. As a first step to make their
presence Global, Hedge Equities have initiated operations in Middle East to cater to the vast Non
Resident Indian (NRI) population in that region. Ever since their inception, they have spanned their
presence all over India through their Meticulous Research, High Brand Awareness, and Intellectual
Management and Extensive Industry knowledge. At Hedge they believe in creating a new breed of
Investors who take judicious decisions through them. Hedge equities ltd. is one of the leading retail
stock broking house which is running successfully in the country.

GEOJIT BNP PARIBAS

Geojit BNP Paribas today is a leading retail financial services company in India with a
growing presence in the Middle East. The company rides on its rich experience in the capital market
to offer its clients a wide portfolio of savings and investment solutions. The gamut of value added
products and services offered ranges from equities and derivatives to mutual funds., Life & General
insurance and third party fixed deposits. The need of over 5, 76,000 clients are met via multichannel
services – a country wide network of over 540 offices, phone service, dedicated customer care
centre and internet.
Geojit BNP Paribas has membership in National Stock Exchange (NSE) and the Bombay
Stock Exchange (BSE). In 2007, global ranking major BNP Paribas joined the company’s other
major shareholders- Mr. C .J. George, KSIDC (Kerala State Industrial Development Corporation)
and Mr. RakeshJunjunwala- when it took a stake to become the single largest share holder.
At the forefront of the many fruitful associations between Geojit BNP Paribas and BNP
 19
Paribas in their joint venture namely, BNP Paribas Securities India Private Limited. This joint
venture was created exclusively for domestic and foreign institutional clients. An industry first was
achieved when Geojit BNP Paribas became the first broker in India to offer full Direct Market
Access (DMA) on NSE to JV’s institutional clients.
MUTHOOT SECURITIES

The Muthoot group has emerged as one of the India’s largest financial group of its kind with
business interest in 17 diverse fields, a network of over 2000 branches nationwide and serving 750
million customers across the country. The Muthoot group with more than 16000 employers
representing almost every cutler and state in the country shall continue to provide supreme quality
of service and earn the trust of millions of people with its constant innovation and dynamism in the
times to come.
SHARE WEALTH

Share wealth Securities Ltd is the first corporate member of National Stock Exchange of India
Ltd, Bombay Stock Exchange India Ltd and MCX Stock Exchange from Thrissur, the cultural
capital of Kerala. It is also depository participant with CDSL (Central Depository Services India
Ltd). This security has two group companies:
 Share wealth commodities Pvt Ltd.

 Share wealth Financial Services Ltd.

MOTILAL OSWAL

MotilalOswal Securities Ltd (MOSL) was founded in 1987 as a small sub-broking unit, with
just two people running the show. Focus on customer first attitude, ethical and transparent business
practices, respect for professionalism. Research based value investing and implementation of
 20
innovative technology has enabled us to blossom into an over 1600 member team. Today they are a
well-diversified financial services firm offering a range of financial products and services such as
Wealth Management, broking & distribution. Commodity broking, portfolio management services,
institutional equities. Private equity, investment banking services and principal strategies.
ANANDRATHI

AnandRathi is a leading full service investment bank founded in 1994 offering a wide range
of financial services and wealth management solutions to institutions, corporations, high net worth
individuals and families. The firm has rapidly expanded its footprint to over 350 locations across
India with international presence in Hong Kong, Dubai & London.
ANGEL BROKING

Angel broking’s tryst with excellence in customer relation began in 1987. Today, angel has
emerged as one of the most respected Stock broking and wealth management companies in India.
With the unique retail focused stock trading business model, angel is committed to providing Real
value for money to all its clients.
 21

CHAPTER 2
ORGANIZATIONAL ANALYSIS
 22
2.1Organizational structure with duties and responsibilities

Hedge Equities Pvt. Ltd. is one of the leading retail stock broking house which is running
successfully in the country. Hedge offers its customers a wide range of equity related services
including trade execution on BSE, NSE, Derivatives, Depository services, online trading
,investment advice etc. The firm has an online trading and investment site-www.hedgeequities.com.
The site gives access to superior content and transaction facility to retail customers across the
country. It simplifies process of investing in stocks.
Hedge Equities incorporated under the Companies Act 1956 as Hedge Equities Private Limited on
17th December 2007 with registered office at 1205, Dalamal Tower, Narimans Point. Later the
company is converted into public limited company on 17th February, 2009.
Team Hedge is a balanced mix of more than a decade experience cutting across various industries
with a strong background in the financial markets. The Founder Director of the HEDGE GROUP is
Mr. Alex K Babu who was assisted by the initial promoters and Mr. Vinay Sasidaran (COO) .
HEDGE EQUITIES has around 19 branches & 20 franchises which are spread across 2 states in
India (Kerala, Maharashtra).
SEBI Registration Number:
● BSE: INB011295434
● NSE:INB/INF231295438
 23
About Hedge Equities

Hedge Equities is one of the leading Financial Services Company in India, specialized in
offering a wide range of financial products, tailor made to suit individual needs . As a first
step to make our presence Global , Hedge Equities have initiated operations in Middle
East to cater to the vast Non Resident Indian (NRI) population in that region. Ever since
their inception , they have spanned their presence all over India through their Meticulous
Research , High Brand Awareness , and Intellectual Management and Extensive Industry
Knowledge . Hedge believes in creating a new breed of Investors who take judicious
decisions through them.

Team Hedge Equities is a balanced mix of more than 25 years of cutting edge experience
cutting across various industries with a strong background in the financial market . The
Board comprises of veterans from six power houses in their respective fields : FedEx
Securities , Baby Marine Exports , Thakker Developers , Smart Financial , S .M . Hegde
(CFO, Videocon Industries), and Padmashree Mohan Lal .

FedEx securities

Managed by a team of ex - bankers , FedEx is a SEBI registered category merchant

banker .The company concentrates on non- fund based activities like structuring, tie up of
project financing , financial restructuring investment banking , corporate and advisory
services. The core management team consists of bankers with rich experience of decades
and exposure to volatile situations in commercial and investment banking . With offices at
Nariman point and Vile Pane East , Mumbai , state of the art infrastructure and qualified
manpower to conduct the business , FedEx securities envisages a phenomenal growth in
this sector for its clients.

Baby Marine Exports

Baby Marine Group , started its operation in 1977 from Kozhikode and through
innovations and hard work has grown into three unit and related industries spanning both
the west and east coast of Indian . Baby Marine Exports , B.M Products and Baby Marine
(Eastern) Exports are efficiently aided by pre-processing units , ice factories and a fleet of
 24
insulated and refrigerated trucks for sea food transportation . Due to constant upgrading of
machinery , state – of – the – art infrastructural facilities , better links with raw materials
suppliers , and an established network of purchasers have obviously made Baby Marine
Group a leading exporter of processed marine products to various international markets.

Smart financial

Smart financial entered the financial market only in 1992 but over this brief span
Has covered a niche for itself by becoming the leading financial provider . The company
offer guidance to investors as equities , commodities , mutual fund's portfolio management
services and insurance. It offers complete range of financial solutions that encompasses
every sphere of life.

Thakker group
Starting off as a land developer and builder in 1962 , Thakkers Groups diversified
into commercial production of agricultural and horticultural products , housing real estate
marketing plantation etc. They have provided shelter to more than 40000 families by
offering residential plots and premises . Thakker developers is the flagship company of
the group . It was established as private limited in 1987 and later went on to become the
only public limited company in North Maharashtra engaged in housing , commercial
construction and land development. The company is also a Class 1 contractor registered
with the Public Work Department , Govt. of Maharashtra.

SM Hedge

Mr. S.M Hedge , a chartered accountant by profession is the Chief Finance Officer of the
Indian Multinational Videocon International and has been at the helm of affairs for the
last 20 year.

Padmashree Bharat Mohanlal

Mohanlal , the south Indian movie superstar has become a legend , a brand and cultural
Ambassador owing to various factors. Versatility and natural flair for donning complex
characters have won him numerous accolades not to speak of some unforgettable films
 25
contributed by him. A multifaceted personality , he has some business ventures also which
include Vismaya Max Film Post Production Studio , College for Dubbing Artists at the
Kinfra film and Video Park Thiruvananthapuram . He is also the director of Unit
Royal Marine Exports ; a Kozhikode based major Seafood Export Company.

Intellectual and knowledge arbitrage is the mantra of modern day business . The same
holds true for the financial markets. With the breadth and depth of knowledge of modern
day business that the Board of Hedge brings to the table, you can be rest assured that
some of the best minds in the business are taking care of your investments.
 26
ORGANISATIONAL STRUCTURE

Director: ALEX K BABU

CEO COO- Vinay Sasidharan Marketing- Cooperate Research

Swaroop Daniel Joy Communication- and
Sarath Chandran P Anusree Das E T advisory –
Shyam Mohan Krishnan
Thampi K
Branch- 19

Accounts- WMS- Hareesh M V

Sajin Francis (CFO)
Suraj Ramachandran
(CFO)
BDO- Justin Varkey

DP/KYC – Kesav
Das KP IT- Shyju P P

RMS- Krishnachandran
SV HumanResource- BobbyMichael

Administration- Bobby Michael

Despatch- Bobby Michael

Compliance- Sini Ralph

Anju Thomas
Nanditha T

Good to Great (Customer Care)–

Sangeeth C Cherian
 27
MISSION

"To create an ethical and sustainable financial services platform for our customers and
partner them to build business , to provide employees with meaningful work , self -
development and progression , and to achieve a consistent and competitive growth in
profit and earnings for our shareholders and staff".

VISION

"Ever since its inception, Hedge Equities has been a household name among the masses
owing our success to timely Professional financial assistance to our clients. This aptly
articulates our vision of 'Evolving into a financial supermarket which will be a one stop
shop for all financial solutions".

SOCIAL CORPORATE RESPONSIBILITY

Being a Responsible Corporate Citizen , Hedge Equities has initiated a Non Profit
Movement 'Hedge Yuva' which focuses on educating the masses about Stock Market. The
movement has also formulated various scholarship programs for young and dynamic
youth.
 28
HEDGE GROUP CHART
Hedge group includes ;

THE HEDGE
GROUP

HEDGE
HEDGE HEDGE HEDGE SCHOOL OF
EQUITIES COMMODITIES FINANCE APPLIED
SCIENCE

HEDGE
OHARI

. HEDGE FINANCE

Hedge Finance has chalked out extensive , long term plans for the comprehensive growth
of the company. With parent company's wide client base and advanced infrastructure ,
Hedge Finance is heading towards achieving a loan book position of Rs 100 Crore within
the first three months of operations.

Hedge Equities is a leading player in the financial markets is all set to leave its mark
in the NBFC sector with the launch of Hedge Finance. The Indian Non - Banking Finance
Companies ( NBFCs ) constitutes a reasonable big chunk of the country's overall financial
system. It is estimated that the NBFCs as a whole accounts for 9.1 % or Rs. 4 trillion of
assets of the entire financial system in India . NBFC industry today is a more mature ,
developed and promising since the day of inception and is destined to shape the future of
India. It is in such time that Hedge Finance has burst into the scene and creating waves
in the sector . Backed by Hedge Equities , which is coming together of over 25 years of
unparalleled experience of business leaders in various industries , Hedge Finance is all set
to be one of the top Non-Banking Finance Company in the country.
.
29

HEDGE SCHOOL OF APPLIED ECONOMICS

Hedge School of Applied Economics ( HSAE ) is the first ever educational venture
dedicated to creating a class of high - end investment professionals across India . Our
faculties' role does not end with the program ; we continue to mentor interested candidates
so that they stay abreast and develop an ongoing understanding on the evolving dynamics
in the financial markets. The programs are designed for students , financial professionals
and investors who would be the advocates of smart investments . Scholarship
opportunities are available to qualified candidates, which are subjected to interviews and
assessments of the course coordinators.

.HEDGE OHARI- THE MAGAZINE

Hedge Ohari is a monthly finance magazine that provides its readers comprehensive
knowledge and insight about the various aspects of financial planning and the entire
spectrum of investment and wealth creation methods , viz. stock market , mutual fund , and
real estate , gold , bonds , banking and so on . The magazine's content includes articles ,
features and interviews about the diverse areas related to finance and business. Sections
such as industry , business management , agriculture , education , automobile , brand equity ,
success mantras , insurance , lifestyle , gadgets , and cinema enrich the magazine's contents
from cover to cover . They are mainly focusing on the read for those readers of
Malayalam who are on the lookout of rich advice to gain insights into the methods of
systematic financial planning and investment and follow a planned way of investing to
realize their objectives . Moreover , every issue of the magazine presents the best reading
experience to readers who like to follow the latest trends in finance and business they
have the readership of over two lakh Malayalees in Kerala and other parts of the country.
Its readership includes eminent people from all walks of life , including policy makers ,
Corporate honchos , political leaders , film stars , professionals , bureaucrats , investors ,
youngsters , students etc. they have the circulation 40000 copies per month.
 30
PRODUCT AND SERVICES OF HEDGE EQUITIES

1. Equity Trading

Equity gives you the opportunity to have a partnership with all the leading Business
tycoons around the globe . Total capital contribution for a company comprises of
investments through equity share holdings by small and big investors . The investors who
have a stake in a company are referred to as shareholders.

Power of Equity shareholders lies in the optimum selection of the Industry , have a strong
belief in the Company's fundamentals and also having a confidence in the profit making
capability of the company.

Equity Market , at present , is a rewarding field for the investors and investing in Indian
stocks are profitable for not only the long and medium - term investors , but also the
position traders , short - term swing traders and also very short term intra - day traders.
Fundamentally , stock market is an avenue for business people to meet shareholders.
Other than bank loans , they now have another option to finance their businesses . They
did it by offering their company's equities in exchange of shareholders cash. The
company is never required to repay the capital , but the new shareholders have a right to
future profits distributed by the company. For shareholders , they have alternatives to
where they should put their money into. In the same time , they get the opportunity to
participate in capital intensive businesses at an affordable price. Equity is an investment
area which you can capitalize on with proper assistance regardless of the market
circumstances . Hedge Equities opens the door to this highly lucrative investment
opportunity that could provide a feasible solution to all your financial queries.

2. Commodities Trading

Commodity " futures " are contracts to buy or sell certain goods at set prices at a
predetermined time in the future.

Futures trading plays a key role in the marketing of a number of important agricultural
and non – agricultural commodities as it provides the industrial and farming communities
 31
with a transparent price discovery platform , which also enables them to hedge their price
risk and price volatility . The growth of Indian commodities futures trading towards an
efficient , transparent and well - organized market has thrown open a window of benefits
and opportunities to Indian producers and traders. Besides the primary benefits of its twin
economic functions of price discovery and price risk management , commodity futures
trading has also played an instrumental role in integrating various fragmented components
of the commodity ecosystem , thus developing the overall infrastructure of agricultural
commodities marketing in the country.

At present , 24 commodity futures exchanges are operational in India , which include 21

Regional bourses and the three national - level players , with another three proposed
exchanges on the cards. With the state - of the - art technology - powered secure and efficient
operational infrastructure , these national exchanges arc creating a near - perfect market
situation with a much wider participation from the ecosystem stakeholders in a large
number of domestic and global commodities during local and international timings.

While the trade in non - agricultural commodities , especially bullion and crude , has
increased in the past two financial years , the same in agricultural commodities has
declined. The share of agricultural commodities almost halved during 2008-09. Due to the
continued ban on several commodities. The clients can trade in commodity futures like gold, silver,
crude oil, rubber etc. And take advantage of the extended trading hours (10 am to 11 pm) in
commodities trading.

3. Currency Trading

Investments in Currency Derivatives can help you to diversify your portfolio from
traditional asset classes. Currency derivatives can be described as contracts between the
sellers and buyers , whose values are to be derived from the underlying assets , the
currency amounts . These are basically risk management tools in force and money
markets used for hedging risks and act as insurance against unforeseen and unpredictable
currency and interest rate movements . Any individual or corporate expecting to receive
or pay certain amounts in foreign currencies at future date can use these products to opt
for a fixed rate - at which the currencies can be exchanged now itself . Currency
derivative serve the purpose of financial risk management encompassing various market
 32
risks . An upfront premium is payable for buying a derivative . Currency Futures will bring
in more transparency and efficiency in price discovery , eliminate counterparty credit risk ,
provide access to all types of market participants , offer standardized products and provide
transparent trading platform.

4. Mutual Funds

A Mutual Fund is a trust that pools the savings of a number of investors who share a
common financial goal. The money thus collected is invested by the fund manager in
different types of securities depending upon the objective of the scheme. These could
range from shares to debentures to money market instruments . The income earned
through these investments and the capital appreciations realized by the scheme are shared
by its unit holder . Thus a Mutual Fund is the most suitable investment for the common
man as it offers an opportunity to invest in a diversified , professionally managed portfolio
at a relatively low cost.

Mutual fund is also called unit trust or open ended trust a company that invests the funds
of its clients in diversified securities and in turn represent those holdings. They make
continuous offering of new shares at NAV (Net Asset Value) determined daily by the
market values of the securities they hold. In Hedge Equities the clients can select from a
wide range of Mutual Funds and Bonds available in the markets today.

5. Online trading

Hedge Equities has a large network of branches with online terminals of NSE and BSE in
the capital market and derivative segments. The clients are assured of prompt order
execution through dedicated phones and expert dealers at our offices.

6. Internet trading

Hedge Equities offers Internet trading through this site . You can trade through the
Internet from the comforts of your office or home , anywhere in the world. The dedicated
IT systems ensure service up time and speed , making Internet broking through Hedge -
Equities hassle free. Using the 'easiest' facility provided by NSDL , the clients can transfer
 33
the shares sold by them online without delivery instruction slips . Additionally , digitally
signed contract notes can be sent to clients through E-mail.

7. Depository services

Hedge Equities is a member of the National Securities Depository Limited (NSDL) , offer
depository services with minimum Annual Maintenance Charges and transaction charges.
Account holders can view their holding position through the Internet. They also offer the
‘easiest’ facility provided by NSDL ( electronic access to securities information and
execution of secured transaction) through which clients can give delivery instructions via
the Internet.

8. Derivative trading
Hedge offer trading in the futures and options segment of the National Stock Exchange
(NSE).Through the present derivative trading an investor can take a short - term view on
the market for up to a three months' perspective by paying a small margin on the futures
segment and a small premium in the options segment. In the case of options , if the trade
goes in the opposite direction the maximum loss will be limited to the premium paid.

9. Knowledge Centre

Knowledge Centre activities are intended to provide systematic and structured services
mainly to new investors and also to young aspirant aiming for a career in financial
markets. The centre has three functional areas : the Publication Division , the Training
Centre , and Wealth Management Advisory Service which provides complete investment
solutions to investors through knowledge based personalized service.

10. Equity Research

Hedge Equities constantly strive to deliver insightful research to enable pro - active
Investment decisions. The research department is broadly divided into two divisions
Fundamental Analysis Group ( FAG ) and Technical Analysis Group ( TAG ) . The
Fundamental analysts are continuously scanning the entire economy for discovering what
they call the "hidden gems" in stock market terminology and present it to the clients for
 34
profitable investments. Timing the market has always been the most difficult task for all
analysts and their Technical Analysis Group has emerged to predict the market
movements well in advance using complex Analytical methods including Eliot Wave
Theory. They are equipped with cutting - edge technologies for technical charting which
assist the technical analysts to predict both upside and downside movements efficiently
for the benefit of clients.

11. Portfolio Management Service

Hedge Equities is a SEBI - approved portfolio manager offering discretionary and non –
discretionary schemes to its clients. Hedge Equities ‘portfolio management’ team keeps track
of the markets on a daily basis and is exposed to a lot of information and analytic
tools which an investor would not normally have access to . Other technicalities
pertaining to shares like dividends , rights , bonus , buy - back , mergers and acquisitions are
also taken care of by them.

Main Competitors

• GEOJIT BNP PARIBAS

• JRG SECURITIES

• RELIGARE

• MUTHOOT SECURITIES

• SHAREWEALTH

• MOTILAL OSWAL

• ANANDRATHI
 35
FUNCTIONAL DEPARTMENT

Client Relation Department

The client relation department assists the client or customer top open an account in
HEDGE EQUITIES (p) Ltd securities. This department is also known as the front office.
A client has to open two types of accounts to trade and own securities in the NSE & BSE.

FINANCE DEPARTMENT

SVP/AVP

Senior manager

Manager

Associate/Admin

Finance department is mainly handled by

Sajin Francis – CFO

Suraj Ramachandran - CFO

Functions of finance department includes ;

 36

1. Bookkeeping and Payables/Receivables

Bookkeeping is the most basic financial activity in a company. Before a business owner ever
considers hiring a CFO, they bring in a bookkeeper, who tracks all of the transactions in the
organization, covering both sales and expenses. As the organization grows, they might hire more
specialized payables and receivables clerks, to take over functions such as corresponding with
vendors and suppliers, above and beyond recording transactions.

2. Financial Reporting and Control

Financial Reporting and Control is the function that takes raw accounting entries and transforms
them into usable and comparable financial statements. Requiring far more judgment than the
bookkeeper’s role, this function involves everything from ruling on how to implement accounting
principles to designing financial processes of the organization, selecting accounting systems,
liaising with external auditors, and ensuring that there are no gaps or oversights in existing
processes.

3. Tax and Compliance

Running a business involves paying tax, and paying tax means doing a lot of calculations and filling
out a lot of forms. Often using the financial statements as a basis, along with various other
configurations of the information produced by Bookkeeping and Payables/Receivables, the Tax and
Compliance function will make sure all of the government forms and filings are sent complete and
on-time to the taxman. A strong Tax and Compliance function will go one step beyond simple
compliance, and will find ways to minimize tax, so as to maximize the company’s net income.

4. Strategic Planning and Financial Planning & Analysis

This function, “FP&A” for short, is the true bridge between the Past and the Future. FP&A
regularly creates strategic and financial plans that forecast what financial results (sales and
expenses) will look like in future periods. Then, they compare actual results—prepared with the
assistance of the Financial Reporting and Control function—to determine areas where the business
can improve. With this “variance analysis” complete, they can then prepare more accurate forecasts
for the future. A strong FP&A function will not only generate annual forecasts but will be able to
update them even over the course of a day or two, and to run many scenarios that examine the
effects of, say, losing a big customer or an economic contraction.
 37

5. Treasury & Working Capital Management

The key role of Treasury is to make sure that the company doesn’t run out of cash. This means,
among other things, forecasting the upcoming working capital (receivables, payables and inventory)
needs of the company, investing surplus cash in short-term instruments to generate modest interest
income, and managing currency risk.

6. Capital Budgeting

Capital Budgeting is the function responsible for selecting between the various uses of capital, or
capital projects. After all, most organizations will have money available to invest in the business,
with the hopes of either growing sales or reducing expenses. But the opportunities for spending
typically exceed the amount available to spend, so Capital Budgeting develops business cases to
evaluate and identify the most effective projects. A strong Capital Budgeting function will not only
forecast project benefits, but will also track these benefits over time to determine whether the use of
capital was as effective as originally anticipated.

7. Risk Management

Risk Management is a function that is rapidly developing after the financial scandals of the early
2000s (Enron, WorldCom, the Great Recession and Lehman/Bear Stearns collapse, etc.). In the
financial services industry, the function is particularly central as most institutions run with a high
amount of debt (leverage), though leaders in other industries are also bulking up this function. Risk
Management takes a hard look at some of the key risks faced by the company—currency, interest
rate, market, operational, legal, etc.—and tries to quantify the possible impacts so that they can be
mitigated as much as possible. If FP&A looks at the base case scenario for the company’s financial
results, Risk Management takes a wrecking ball to it.

8. Corporate Development & Corporate Strategy

Corporate Development and Corporate Strategy can be widely defined, but it is the area of Finance
most heavily populated by former investment bankers and management consultants. As such,
common tasks that fall to this function include sourcing and analyzing mergers & acquisitions
 38

deals, raising debt and equity financing, making capital structure decisions and providing insight
into high-level strategic decisions such as entering a new market.

Thus a department , to organize financial activities may be created under the direct control
Of the board of directors. Finance manager will decide the major financial policy
methods. Lower levels can delegate the other routine activities.

MARKETING DEPARTMENT

National head

Branch manager

Assistant branch
manager

Marketing
executive

Marketing department is mainly handled by

Swaroop Daniel Joy

Sarath Chandran P

Shyam Mohan
 39
The major functions of marketing department are:

a) Business associate development : The Company takes up the marketing activities

of the various branches. It ensures an efficient marketing arena at its various
branches. The company encourages better relations in its branches and promotes
for the development of various marketing strategies.

b) Brand promotion : An important function of marketing department is to promote

the name of the company. HEDGE EQUITIES (P) LTD does it through the
different promotional activities. The name of HEDGE EQUITIES (P) LTD as a stock
broking firm is made known to the outside world.

c) Investment promotion : The main clients of HEDGE EQUITIES (P) LTD were its
investors. Hence the marketing department tries to capture as many investors as
possible to encourage them to invest.

d) Delivery promotion : Intraday trading is not always profitable and might involve a
lot of risk hence HEDGE EQUITIES (P) LTD promotes for delivery were the
shares are kept to be sold for a later date analyzing the profitability factors.

Marketing strategies ;
● Advertisements

● Magazines

● Campaigns

● SEO campaigns

● Market watch events

 40
SYSTEMS DEPARTMENT

Manager

Associate/Admin

IT department is mainly handled by Shyju P.P

Main functions of IT department includes ;

a)Expanding Means of Communication

Long before computers and information technology, communication was a vital part of any
business. IT, however, has redefined the way we communicate with each other. Seemingly
everyone has a smartphone nowadays, and it is possible to contact anyone around the world within
a few clicks. Not only is this convenient for communication between employees of the same
company, but it also opens the communication lines between companies - making for more efficient
partnerships and collaborations.

IT allows an organization to communicate by multiple means, including phone, email, video

conferencing and social media. Phone and email were the two primary means of communicating in
the early days of IT, but the introduction of video conferencing has led to an increase of virtual
meetings that allow employees to save time and companies to save money on in-person meetings.

The rise of social media has changed how companies communicate with their customers.
Companies can use social media for advertising or customer service, as they are able to talk to
customers in a way that makes them feel more connected with the brand.
 41
b)Data Collection and Management
Data has become one of the most valuable resources a company can have. Many companies -
Facebook and Google, for example - have built their business models around collecting users' data
and using it to sell advertisements.

Even if a company is not a technology company, it still needs data such as sales data, financial
records, inventory information and customer records. IT systems allow an organization to collect,
store, manage and utilize data.

The days of storing information on paper in rows of filing cabinets are gone; databases store vast
amounts of information for businesses. And with the introduction of cloud technology, this
information can often be accessed at any time from anywhere.

IT tools allow organizations to take raw data and put it in a format that allows for analyzing.

c)Information Security Management

Company IT departments should also be tasked with putting information security measures in place
to keep the company's data secure and free from hackers. Not only can data leaks lead to fines and
regulatory action, but they also put an organization's reputation at risk.

Consumers do not feel comfortable giving their data away to companies who cannot keep it secure.
IT security measures prevent this from happening.

d)Customer Relations Management

IT is being used to improve the way organizations interact with their customers. Specifically,
customer relationship management systems - often referred to simply as CRM in the business world
- track and organize every interaction a company has with its current and potential customers.

These systems keep track of where an individual may be in the sales pipeline and aggregates all
information so the company can provide a better user experience. Without IT, this process would
not be nearly as effective.

e)Improvement of Processes

One of the most valuable functions of IT in an organization is improving the efficiency of

operational processes. IT systems are put in place to eliminate wasteful and useless activities that
can be done better through the use of technology. For example, companies can now onboard and
 42

train new employees through online training sessions and modules - saving the company time and
money.

Implementing IT allows organizations to automate processes and take over otherwise costly
activities like printing and mailing billing statements to customers.

The systems department is playing a vital role in the day operations of the company. It is
Through the systems department that the clients can avail the facilities of Internet trading.
Optic fibre cables and high band width connections from the HEDGE EQUITIES (P)
LTD office to the ISP , a dedicated server and back - up ISDN connections were
maintained directly by the systems department. For the purpose of trading they have
made use of two software namely ODIN (Open Dealers Integrated Network).

HUMAN RESOURCES DEPARTMENT

SVP/AVP

Senior manager

Manager

Associate/Admin

HR department is mainly handled by Bobby Michael

Human Resource is often considered as the back bone of an organization even in this age
of advanced automation and mechanization. Since virtual organizations are not very
much popular in our part of the world, it is very important to any organization to have a
HR department. The presence of an excellent HR department increases the efficiency of
an organization considerably. Human resource management is defined as asset of
 43
practices , policies and programmes designed to maximize both the personal and
organizational goals.

The main functions include ;

a. Training and induction

The selected employees will undergo three days continuous induction. During this period,
he will undergo training with all the department of HEDGE EQUITIES (P) LTD
Securities (India) Pvt. Ltd. There will also be classroom induction also within 3 months.

b. Wages and Salary Administration

The wages and salaries of the employees were fixed and granted by the HR department
with consent of the finance department.

c. Performance Appraisal

It was Human Resources department which gives the promotion to all employees, making
transfers and taking disciplinary actions if needed.

d. Grievance Handling
The grievance of employees were received only through proper channels i.e , through the
particular department heads. The HR department will make solutions to the complaints as
per the rules and regulations of the company.

Recruitment process ;

1.Identifying the hiring need

You can’t find what you need . . . if you don’t know what you need. It’s not enough to know that
you need [insert position title here]. You must also know the complete job description. However,
you must know the description as the last employee who left in the position left it, NOT the
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description when that person took the job. That’s because chances are good that they took on
new/additional responsibilities while in the position. Now the job when they left is different than
they job when they arrived.

2.Planning

Once you’ve identified exactly what you need (both in terms of hard skills and soft skills), then it’s
time to put a plan together to find what you need. Make sure that you get the “buy in” of everybody
involved with the hiring process on the steps that will be taken and the communication channels that
will be used. All it takes is one misstep to blow everything up.

3.Searching

This is a case where you need to be a “hunter” and not a “gatherer.” Too many companies are
“gatherers,” thinking that superstar candidates are going to rain down from the sky like so much
manna. No, they are not. Once again, this is why companies hire “headhunters.” They hunt, they do
not gather. Not only that, but they’re good at what they do. Hiring authorities and even companies
with internal recruiters often cannot match the expertise and connections of a recruiter who “works
in the trenches” of the industry day after day.

4.Identifying viable candidates

Finding candidate is also not enough. An organization (or its recruiter) must also find qualified
candidates. Anybody can find candidates. They’re everywhere. So searching for them, finding
them, and identifying them will be more difficult if the first three steps in the process have not been
undertaken.

5.Recruiting of A-level candidates

Once viable candidates have been identified, they must be recruited. In other words, they must be
sold on not only the opportunity, but also on the organization. Some organizations miss this
important distinction. Top candidates are not just interested in a great new job. They’re interested in
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a great new job with a great new employer. If they like the job, but they don’t also like the
employer, then they’re not going to take the job.

6.(Telephone) screening

Sure, you have a batch of viable candidates, most likely passive candidates, who are interested in
the position. But not every single one of them are going to make it through the process. That brings
us to the first screening stage of the process, the telephone interview. Ideally, you would have a list
of 10 to 15 very strong candidates, all of whom are interested in the position. The phone screening
serves to whittle that list down, so that you can move to the next stage of the process.

7.(Face-to-face) interviewing

There are two important aspects of this part of the recruitment process:

It can’t stretch out too long, or candidates involved will lose interest.

Employers must communicate to candidates where they are in the process and what to expect in the
near term or they will start looking elsewhere. This is a particular danger with top candidates, since
they are more than likely interviewing with more than one organization.

Sure, there are other important aspects of the interview stage, but these are the two that companies
neglect the most, with predictably dire consequences.

8.Offering of employment

The offer stage is one of the most delicate stages of the recruiting process. A hiring manager should
never take for granted that a candidate is going to accept an offer. However, if they’ve done all of
the proper work beforehand and they’ve double and triple-checked everything, then the candidate
should accept the majority of the time. Here’s an important note: if an organization is working with
a search consultant, the hiring manager of that organization should let the search consultant extend
the offer. That’s what the candidate expects, and that’s what should happen.

9.Hiring of the candidate

Why are the offer step and the hire step not combined into one step? Because not every offer of
employment is accepted. If every offer was accepted, then yes, we could do that. If a candidate
rejects the offer, then the company might extend the offer to their 2 nd candidate . . . or their 3 rd
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candidate, if 2nd falls through. Once a candidate does accept the offer of employment, though,
that’s when the official hire can be made.

10.Onboarding of the candidate

What’s the point of hiring the best candidates in the marketplace if you can’t retain those candidates
after you’ve hired them? A comprehensive onboarding process is perhaps the most crucial steps in
the recruiting process. When we refer to onboarding, we’re talking about more than just new
employee paperwork and knowing where the bathrooms are located. We’re talking about continuing
to make the candidate/new employee feel wanted before they officially join the organization. Many
a company has failed to do that, only to see their new employee never show up for their first day of
work.

TRADING DEPARTMENT

The department deals with the trading related activities of the company. The trading
refers to the buying and selling of shares. This department is the most important part of
the organization. There are two types of trading. They are

a. Online Trading:

These are the trading terminal of the organization. The each computer of the department
is termed as the trading terminal. The each terminal is assigned with NCFM certified
dealers , who is in charge of each portal will do the trade according to the client request.
The terminal is managed by either NEAT (National Exchange for Automated Trading)
software or ODIN (Open Dealers Integrated Network) software. The client can also place
his through written request or through the telephone , in this the order will be placed by
the dealer.

b. Internet Trading:

The internet trading is a facility provides by the company in order to trade the securities
from his convenient place like his office , home etc. the order will be placed by the client
itself , and he can make changes before the trade is done for changing the price,
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cancellation of the order.

DELIVERY AND DEPOSITORY DEPARTMENT

Delivery refers to the share that bought on particular day are not sold on that day itself
and holding of the share for an appreciation in the value of the security and to trade it on
a future date. Deliver Instruction Slip: it is a slip the client should fill and gave to the
dealer regarding the purchase of the share.

There are two procedures to move the share namely

a. Power of attorney

This is which the client signs at the time of opening a trading account and depository
Participant account. If the client has given the power of attorney, HEDGE EQUITIES (P)
LTD will have the power to transact the clients stock without pay - in slips.

b. Easiest

It is secured internet enabled service which means Electronic Access to Securities

Information and Execution of Secured Transaction. This is facility wherein the clients can
give delivery instructions via internet. Easiest is a facility provided by CDSL.

The activities related with the depository department

● Depository function

● Dematerialization

● Pledging

● Equity Research department

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The function of the department is to study the details regarding the share or securities and
to make prediction regarding the future performance of the company. The following
types of approaches done through this department:
● Fundamental analysis

● Technical analysis

SWOT ANALYSIS OF HEDGE EQUITIES

STRENGTH

● Prime lender in Kerala with a wide client base and advanced infrastructure

● Full service financial services provider with over 150 service outlets and a satisfied client of over
30000

● The first ever educational venture in Kerala that is solely dedicated to creating a class of high end
investment professionals

● Has a monthly financial magazine ‘Ohari’ which is the first of its kind in Malayalam catering
specifically to the needs of investors

WEAKNESS

● Low publicity causes lack of awareness among investors

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● Our organization take time to break into the market and gain acceptance from corporate clients

OPPURTUNITIES

● Increase in the number of investors

● Have an edge over banks in meeting the credit needs

● Low operating cost and focused product presence

THREATS

● Strict policies taken by the government and RBI

● Entry of Foreign finance firms in Indian market

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CHAPTER 3
POSTIONING OF THE INTERN AND HIS ROLE
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3.1 ROLES, DUTIES AND RESPONSIBILITIES
As an intern I was obligated to demonstrate the highest level of professionalism, which include arriving on
time for designated work and dressing to the standards of the organization and the work being
performed, to respect the standards of the organization and the work being performed, to respect the
organization’s reporting structure and follow the policies and procedures of the organization,
thereafter to complete and submit the reports.

● To do a brief study about the organization.

● To study about various candle stick patterns.
● Understand the software used in the organization
● Analysing the market conditions.
● Book trading of various companies
● Taking decision on when to buy and sell shares or securities
● Update daily report to the management

3.2 Departments allotted

● Finance

3.3 Contribution of intern to the organization / outcome

● Initiatives and responsibilities taken by the intern
o Book trading of shares
o Checking the buying and selling point of shares.
o Analysing the market.

● Tasks Completed
o Completed book trading of the shares.
o Analysing the stock market on a daily basis.
o Founded out the buying and selling point of shares.
● New ideas and Concept
o Studied to analyse the market with the help of candle charts.
o Studied on the process of trading on a stock exchange and various problems that may arise while
trading on a stock exchange.
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CHAPTER 4
WEEKLY ACTIVITY REPORT
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CHAPTER 5
SUGGESTIONS AND CONCLUSIONS
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Suggestions

● The economic conditions effect the sector and that makes changes in the market
● Never buy shares by considering its low price value
● A thorough knowledge about the banking sector in which you are going to invest will help to
minimize the risk
● Hardcore finance activities can be implemented
● Investment in more than one security would ensure a stable return
● It is necessary that one should know about technical analysis in order to invest and trade in
securities.
● Less knowledge about the stock market can lead to high losses.

Conclusion

From this study we found out the different types of marketing activities used for the promotion as
well as for generation of the leads the different types of marketing like the digital marketing , tele
marketing , direct marketing and recording of the customer details with the help of CRM in the
organizations.

REFERENCE
 http://www.moneycontrol.com
 http://www.hedgeequities.com
 www.googlefinance.com
 www.yahoofinance.com
 www.technicalanalysis.com
 www.nsendia.com
 www.bseindia.com

Mr. Sooraj Kinarath

Research Analyst
HEDGE EQUITIES