Bhavik Final01

INDUSTRIAL INTERNSHIP PROGRAMME 2011
Project Report On Gauging the potential of Financial Services in Emerging Economies
Prepared By Bhavik Shah Roll No. 24 Steven Business school 2010-12 Submitted to: Under Guidance of: Dr. Himani Joshi (Assistant Dean of Steven Business School) Company Guide: Mr. Pulkit Bakliwal (Business Associate of Motilal Oswal)
Stevens Business School (2010-12)
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INDUSTRIAL INTERNSHIP PROGRAMME 2011 DECLARATION BY STUDENT

I take this opportunity to express my sense of profound gratitude to all the people who have been instrumental in making my training a great learning and rich experience.
I, Bhavik Shah, student of Post Graduate Program of Stevens Business School, Gandhinagar here by declare that the project work entitled Gauging the potential of Financial Services in Emerging Economies with respect to MOTILAL OSWAL Securities Limited is an original and individual work submitted by me to Stevens Business School, Ahmedabad under the esteemed guidance of Mr. Pulkit Bakliwal, Mrs. Neha Patni and Dr. Himani Joshi.
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INDUSTRIAL INTERNSHIP PROGRAMME 2011 ACKNOWLEDGEMENT

Here, I take this opportunity to humbly express our gratitude to all those concerned with Motilal Oswal Securities Limited. I would like to share the success of our project amongst the person who has directly and indirectly helped us to complete this project. In representing this report i would like to express my thank to Mr. Pulkit Bakliwal, Business Associate, Motilal Oswal Securities Limited for giving me the opportunity of having my internship at Motilal Oswal Securities Limited, and providing inspiration for the completion of project. I would also like to express my gratitude to Mr. Abhishek Pathak and Mrs. Neha Patni for his co-operation and guidance without which this project would never have been a success. I am also indebted to all the internal employees and fellow trainees of Motilal Oswal for providing consistent encouragement and congenial atmosphere to complete the project. I would express my sincere thanks to Dr. Himani Joshi and Stevens Business School for providing me necessary guidance and valuable instructions for the completion of this project. I would like to express my heartiest thanks to my family, parents and brother to extend their help as and when required. I would like to thank my friends for their support during my project. his valuable guidance and
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EXECUTIVE SUMMARY
A project work is a mandatory requirement for the Masters degree in business Administration. As a student of MBA, it is an integral part of curriculum to undergo practical training at an organization. The industrial internship aims at exposing the young prospective to the actual business world. Without the practical exposure one cannot consider himself or herself as a qualified capable manager. During the project period student can learn through his own experience, the real situation corporate world and to put his theoretical knowledge into practice.
Hence to fulfill the requirement, we have completed our Two Months Internship in Motilal Oswal Securities Ltd. on the topic Gauging the Potential for Finance Sector in Emerging Economy/ Country in financial market, given to me by my company guide.
A Financial Sector, with high peak growth, in emerging countries, I aimed to find such emerging country which has high potential to grow fast and have ample opportunity for any Indian Financial Service firm to have a platform to provide financial service in that country and can expand. Objective of project:1. To explore the opportunities for Indian Financial Firm in MENA countries. 2. To study the economic political & financial sector and condition of MENA countries.
As projects focus is to serve Indian Population residing in foreign country, we made a list of developing country with number of NRI population in that country. As the Interest rate and Tax rate play a vital role in any financial consideration, we select some of the country with high Indian population ratio and find the interest rate and tax rate of the country. Also demographics of Indian population and economic survey of country helped us to narrow down our list of countries. Then as an individual I got 3 countries for research project.
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INDUSTRIAL INTERNSHIP PROGRAMME 2011 TABLE OF CONTENT

S.No. Title Page Declaration Acknowledgement Executive Summary Chapter 1 1.1 1.2 1.2.1 1.2.2 1.3 1.4 1.4.1 1.4.2 1.4.3 1.4.4 1.4.5 1.4.6 Chapter 2 2.1 2.1.1 Introduction to Indian financial system Introduction Indian financial system: An introduction Formal and informal financial sector Indian Financial System Components of formal financial system Industry overview Growth of financial sector in India Growth of banking sector in India Growth of capital market in India Growth of insurance sector in India Growth of venture sector in India Opportunities for the financial sector in India Introduction of Motilal Oswal History Focus on Research Topic Page No. 1 2 3 4 11 12 12 13 13 14 19 19 19 20 20 20 21 22 23 24
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2.2 Chapter 3 3.1 3.2 3.3 3.4 3.5 Chapter 4 I 4.1.1 4.1.2 4.1.3 4.1.4 4.1.5 4.1.6 4.1.7 4.1.8 4.1.9 4.1.10 II 4.2.1 4.2.2 4.2.3 4.2.4 4.2.5 4.2.6 Motilal Oswal Products & Services Introduction of project Finance sector and economic growth Scope of study Research objective Sampling techniques Research methodology Findings & conclusion Guyana Demographics GDP growth rate Inflation rate Major source of income Exchange & currency rate Tax Structure Type of political system Major industries Financial services Banking services & products Kenya Demographics GDP growth rate Inflation rate Major source of income Exchange & currency rate Tax Structure 25 26 28 30 32 32 32 37 38 38 39 40 40 40 41 41 41 42 43 49 49 50 51 51 51 52
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4.2.7 4.2.8 4.2.9 4.2.10 III 4.3.1 4.3.2 4.3.3 4.3.4 4.3.5 4.3.6 4.3.7 4.3.8 4.3.9 4.3.10 4.3.11 4.4 Chapter: 6 Type of political system Major industries Financial services Banking services & products Kuwait Demographics GDP growth rate Inflation rate Major source of income Exchange & currency rate Tax Structure Type of political system Major industries Indian companies in Kuwait Financial services Banking services & products Conclusion Other assignments 53 53 53 55 61 61 62 62 63 63 64 65 65 66 66 67 72 73
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CHAPTER 1: INTRODUCTION TO INDIAN FINANCIAL SYSTEM
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INDUSTRIAL INTERNSHIP PROGRAMME 2011 1.1 INTRODUCTION

As a part of Industrial Internship Programme, I as an intern have given a project by the company Motilal Oswal. Project title Gauging the Potential for Finance Sector in Emerging Economy/Country. This project is all about grabbing the potential opportunities in the emerging countries. For selection process many variables are considered like Indian population in that country, Tax structure, Interest rate, Economy and existing Financial services which are discussed in same.
1.2 THE FINANCIAL SYSTEM: AN INTRODUCTION

A financial system plays a vital role in the economic growth of a country. It intermediates between the flow of funds belonging to those who save a part of their income and those who invest in productive assets. It mobilizes and usefully allocates scarce resources of a country. A financial system is a complex, well integrated set of sub systems of financial institutions, markets, instruments and services which facilitates the transfer and allocation of funds, efficiently Fig.1
Commercial Banks Insurance Companies Mutual Funds Provident Funds Non Banking Financial Companies
Financial Institutions Demanders of Funds
and The Financial

Individuals Businesses Governments
effectively. System
Suppliers of Funds
Financial Markets
Individuals Businesses Governments
Money Market Capital Market
Book of Financial Management by Prasanna Chandra
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The financial system provides a payment mechanism, enables the pooling of funds, facilitates the management of uncertainty, generates information for decentralized decision making, and helps in dealing with informational irregularity.
Financial intermediaries give advantages like diversification of investment, lowering transaction cost, provides economies of scale etc.
1.2.1 FORMAL AND INFORMAL FINANCIAL SECTORS

The financial systems of most developing countries are characterized by co-existence and co-operation between the formal and informal financial sectors. The co-existence of these two sectors is commonly referred as financial dualism. The formal financial sector is characterized by the presence of an organized, institutional and regulated system which caters to the financial needs of the modern spheres of economy; the informal financial sector is an unorganized, noninstitutional, and non-regulated system dealing with the traditional and rural spheres of the economy.
1.2.2 THE INDIAN FINACIAL SYSTEM

The Indian financial system can also be broadly classified into the formal (organized) financial system and the informal (unorganized) financial system. The formal financial system comes under the preview of the Ministry of Finance (MoF), the Reserve Bank of India (RBI), the Securities and Exchange Board of India (SEBI), and other regulatory bodies. The informal financial system consists of: Individual moneylenders such as neighbours, relatives, landlords, traders, and storeowners. Groups of person operating as funds or associations. These groups function under a system of their own rules and use names such as fixed fund, association and saving club. Partnership firms consisting of local brokers, pawnbrokers, and non-bank financial intermediaries such as finance, investment, and chit-fund companies.
Stevens Business School (2010-12) Page 13
INDUSTRIAL INTERNSHIP PROGRAMME 2011 1.3 COMPONENTS OF THE FORMAL FINANCIAL SYSTEM
The formal financial system consists of four segments or components. These are:- financial institutions, financial markets, financial instruments, and financial services which are in detailed explained below:
I.
FINANCIAL INSTITUTIONS
These are mediators that mobilize savings and facilitate the allocation of funds in an efficient manner. Following are the classification of financial institutions: Classification of Financial Institutions: Banking and non-banking
Financial institutions can be classified as banking non-banking financial institutions. Banking institutions are creators and purveyor of credit while non-banking financial institutions are purveyor of credit. Term finance
Financial institutions can also be classified as term-finance institutions such as the Industrial Development Bank of India (IDBI), the Industrial Credit and Investment Corporation of India (ICICI), the Industrial Financial Corporation of India (IFCI), the Small Industries Development Bank of India (SIDBI), and the Industrial Investment Bank of India (IIBI). Specialized
Financial institutions can be specialized finance institutions like the Export Import Bank of India (EXIM), the Tourism Finance Corporation of India (TFCI), ICICI Venture, and the Infrastructure Development Finance Company (IDFC).
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Sectoral
Sectoral financial institutions such as the National Bank for Agricultural and Rural Development (NABARD) and the National Housing Bank (NHB). Investment
Investment institutions in the business of mutual funds Unit Trust of India (UTI), public sector and private sector mutual funds and insurance activity of Life Insurance Corporation (LIC), General Insurance Corporation (GIC) and its subsidiaries are classified as financial institutions. State-level
There are state-level financial institutions such as the State Financial Corporations (SFCs) and State Industrial Development Corporations (SIDCs) which are owned and managed by the governments.
II.
FINANCIAL MARKETS
A Financial Market is a market where financial assets are created and exchanged. There are different ways of classifying financial markets:
Fig. 2 Classification of financial markets: Nature of claim

Debt Market
Maturity of claim
Money Market
Seasoning of claim
Primary Market
Timing of Delivery
Cash or spot Market Forward Of futures Market
Organisational Structure
Exchange traded Market
Over the counter Market
Equty Market
Capital Market
Secondary Market
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Regulatory Bodies
Two major regulatory bodies for financial system of India are government bodies they are:
Reserve Bank of India- Central banking authority of India Securities Exchange Board of India- Deals with Capital Market of India
III.
FINANCIAL INSTRUMENTS
A financial instrument is a claim against a person or an institution of payment, at a future date, of a sum of money and/or a periodic payment in the form of interest or dividend. The term and/or implies that either of the payments will be sufficient but both of them may be promised. Financial instruments represent paper wealth shares, debentures, like bonds and notes. Following are distinct features of financial instruments.
DISTINCT FEATURES OF FINANCIAL INSTRUMENTS

Marketable
Many financial instruments are marketable as they are dominated in small amounts and traded in organized markets. This distinct feature of financial instruments has enabled people to hold a portfolio of different financial assets which, in turn, helps in reducing risk. Savings and investments are linked through wide variety of complex financial instruments known as Securities. Tradeable
Financial securities are financial instruments that are negotiable and tradeable. Financial securities may be primary or secondary securities. Primary securities are also termed as direct securities as they are directly issued by the ultimate borrowers of funds to the ultimate savers. E.g. Equity shares and Debentures.

Secondary securities are also referred to as indirect securities, as they are issued by financial intermediaries to the ultimate savers. E.g. Bank deposits, mutual funds units, and insurance policies. Financial instruments differ in terms of marketability, liquidity, reversibility, type of options, return, risk and transaction costs. Financial instruments help financial markets and financial intermediaries to perform the important role of channelizing funds from lenders and borrowers.
IV.
FINANCIAL SERVICES
These are those services that help with borrowing and funding, lending and investing, buying and selling securities, making and enabling payments and settlements, and managing risk exposures in financial markets. The major categories of financial services are funds intermediation, payments mechanism, provision of liquidity, risk management and financial engineering. Following are the needs and types of financial services for: NEEDS OF FINANCIAL SERVICES FOR: Borrowing and funding Lending and investing Buying and selling securities Making and enabling Payments and settlements Managing risk
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TYPES OF FINANCIAL SERVICES Insurance
A contract in which one party agrees to pay for another party's financial loss resulting from a specified event (for example, a accident, theft, or storm damage). Lease agreements generally require that you maintain vehicle accident and comprehensive insurance as well as liability insurance for bodily injury and property damage. Mutual Fund
A mutual fund enables investors to pool their money and place it under professional investment management. The portfolio manager trades the fund's underlying securities, realizing a gain or loss, and collects the dividend or interest income. The investment proceeds are then passed along to the individual investors. There are more mutual funds than there are individual stocks. Banking
Financial intermediary Institutions for receiving, lending, and safeguarding money as well as conduction other financial transactions. There are several types of banks: central banks, commercial banks, corporate banks, credit unions, savings banks, trust companies, finance companies, life insurers, investment banks, etc. Banks have drastically evolved throughout time, increasing their services but also becoming institutions that cater to greater numbers of people. Shares
Shares are a term referred to the units of ownership interest provided to the stockholder or owner of a company. The term is often used in connection with the number of units issued to an owner of Common Stock or Preferred Stock. A stock is a certificate of ownership in a corporation. It is the same as a share.
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INDUSTRIAL INTERNSHIP PROGRAMME 2011 1.4 INDUSTRY OVERVIEW

1.4.1 GROWTH OF FINANCIAL SECTOR IN INDIA
The growth of financial sector in India is nearly 8.5% per year (www.economictimes.com). The rise in the growth rate suggests the growth of the economy. The financial policies and the monetary policies are able to sustain a stable growth rate. The financial sector in India had an overall growth of 15%, which has exhibited stability over the last few years although several other markets across the Asian region were going through disorder. The development of the system pertaining to the financial sector was the key to the growth of the same. With the opening of the financial market variety of products and services were introduced to suit the need of the customer. The Reserve Bank of India (RBI) played a dynamic role in the growth of the financial sector of India. Analysis of Indian Financial Sector reveals that it is at present going through a phase of stable growth rate which is experiencing a upward swing. The rise can be maintained over a long period by keeping the inflation down. The major step towards opening up of the financial market further was the nullification of the regulations restricting the growth in the financial sector.
1.4.2 GROWTH OF BANKING SECTOR IN INDIA

The banking system in India is the most extensive. The total asset value of the entire banking sector in India is nearly US$ 270 billion. The total deposits are nearly US$ 220 billion. Banking sector in India has been transformed completely. Presently the latest inclusions such as Internet banking and Core banking have made banking operations more users friendly and easy.
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1.4.3 GROWTH OF CAPITAL MARKET IN INDIA
The ratio of the transaction was increased with the share ratio and deposit system. The removal of the pliable but ill-used forward trading mechanism. The introduction of InfoTech systems in the National Stock Exchange (NSE) in order to
cater to the various investors in different locations.

Privatization of stock exchanges.
1.4.4 GROWTH IN THE INSURANCE SECTOR IN INDIA
With the opening of the market, foreign and private Indian players are keen to convert untapped market potential into opportunities by providing tailor-made products.
The insurance market is filled up with new players which has led to the introduction of several innovative insurance based products, value add-ons, and services. Many foreign companies have also entered the arena such as Tokio Marine, Aviva, Allianz, Lombard General, AMP, New York Life, Standard Life, AIG, and Sun Life.
The competition among the companies has led to aggressive marketing and distribution techniques.
The active part of the Insurance Regulatory and Development Authority (IRDA) as a regulatory body has provided to the development of the sector.
1.4.5 GROWTH OF VENTURE SECTOR IN INDIA
The venture capital sector in India is one of the most active in the financial sector inspite of the difficulty by the external set up.
Presently in India there are around 34 national and 2 international SEBI registered venture capital funds
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1.4.6 OPPURTUNITIES FOR THE FINANCIAL SECTOR IN INDIA
The distributed financial gain of the venture capital funds is not taxed. The financial gains are taxed after the investors receive as income.
They have more insurance and banking products introduced into the market to expand the spectrum which in turn would boost the growth of the sector.
Further nullification of the regulations has to take place in order to increase the competition and boost the growth of the financial sector to reach the US$ 51 billion mark.
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CHAPTER 2: INTRODUCTION OF COMPANY
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INDUSTRIAL INTERNSHIP PROGRAMME 2011 2.1 HISTORY

Motilal Oswal 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 cutting-edge 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. They have a diversified client base that includes retail customers (including High Net worth Individuals), mutual funds, foreign institutional investors, financial institutions and corporate clients. Their headquartered is in Mumbai and as of March 31st, 2011, had a network spread over 611 cities and towns comprising 1,644 Business Locations operated by our Business Partners and us. As at March 31st, 2011, we had 709,041 registered customers.
Motilal Oswal Financial Services Ltd. (MOFSL) is a well-diversified, financial services company focused on wealth creation for all its customers, such as institutional and corporate clients, HNI and retail customers. Their services and product offerings include equity broking, commodity broking, and distribution of third party products, investment banking and venture capital management.
Mr. Motilal Oswal and Mr. Raamdeo Agrawal laid the foundation for MOFSL and initially conducted business as a sub-broking firm. Thus, began the expedition of building a professional organization with strong value systems, to provide investment advice to investors.
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Today, Motilal Oswal Financial Services Ltd. is a well-established brand among retail and institutional investors in India, with a presence in over 1533 business locations across over 487 cities. From a sub-broking firm, Motilal Oswal Financial Services Ltd. has today become a solid financial services company straddling a spectrum of businesses in the Financial services space. These businesses include Wealth Management, Institutional Equities, Investment Banking and Venture Capital Management.
In 2006, the Company placed 9.48% of its equity with two leading private equity investors based out of the US New Vernon Private Equity Limited and Bessemer Venture Partners. The company got listed on BSE and NSE on September 9, 2007. The issue which was priced at Rs.825 per share (face value Rs.5 per share) got a overwhelming response and was subscribed 27.18 times in confused market conditions. The issue gave a return of 21% on the date of listing. As of end of financial year 2008, the group net worth was Rs.7 bn and market capitalization as of March 31, 2008 was Rs.19 bn. Credit rating agency Crisil has assigned the highest rating of P1+ to the Companys short-term debt program. Shareholding Pattern at on 31st March, 2011. As of March 31st, 2011; the total shareholding of the Promoter and Promoter Group stood at 69.16%. The shareholding of institutions stood at 12.07% and non-institutions at 18.77%.
2.1.1 Focus on Research

Research is the solid foundation on which Motilal Oswal Securities advice is based. Almost 10% of revenue is invested on equity research and we hire and train the best resources to become advisors. At present they have a expert team of Research Analysts researching 25+ sectors and commodities. From a fundamental, technical and derivatives research perspective; Motilal Oswal's research reports have received wide coverage in the media (over a 1000 mentions last year). Their consistent efforts towards quality equity research have reflected in an increase in the ratings and rankings across various categories in the Asia Money Brokers Poll over the years.

Their unique Wealth Creation Study, authored by Mr. Raamdeo Agrawal, Jt. Managing Director, is now in its 15th year. Investors keenly await this annual study for the wealth of information it has on the companies that created wealth during the preceding five years.
Following are the products and services offered by Motilal Oswal:
2.2 PRODUCTS & SERVICES OFFERED BY MOTILAL OSWAL

Today Motilal Oswal is a well diversified financial services firm offering a range of financial products and services such as:
Equity Derivatives Online Trading Commodities Mutual Funds Distribution IPOs Depository Services Portfolio Management Services Wealth Management
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CHAPTER 3: INTRODUCTION OF PROJECT
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Gauging the potential of Financial Services in Emerging Economies
Background: (International Finance Sector and services)

As countries in the Middle East and North Africa (MENA) consider ways to promote more rapid and lasting economic growth, further financial sector reform should be high on the agenda. Policies aimed at enhancing financial sector performance result in higher economic growth both theory and evidence support this proposition. A more developed financial system promotes efficiency and growth by reducing information, transaction, and monitoring costs. Research in this area is typically based on a broad cross section of countries, but comparatively little work has been done on (i) the specifics of financial development in the MENA region and (ii) measures of financial development that go beyond simple aggregate indicators. Going beyond simple aggregate indicators such as GDP is necessary to identify and prioritize among different areas of financial sector reform. The simple indicators, though easily available and open to to cross-regional and inter comparisons, do not necessarily capture what is broadly meant by financial sector development. Financial development is a multifaceted concept, encompassing not only monetary aggregates and interest rates (or rates of return) but also regulation and supervision, degree of competition, financial directness, institutional capacity such as the strength of creditor rights, and the variety of markets and financial products that comprise a nations financial structure. In this study, we review what the economic literature says about financial development and growth and draw general lessons for macroeconomic and financial policy. After assessing financial sector development in the MENA region, we propose platform to our company to enhance their services. Drawing on recent research by the IMF on the MENA countries and also considering our requirement of different variables, we evaluate financial sector development and opportunity for Indian financial player to expand, by constructing an index that encompasses some of the themes: monetary policy, banking sector development, regulation and supervision,
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Non Banking Sector, Economic development, Tax structure and also focused on Indian population ratio. Overall, we find that the relative strength of MENA countries, as a group, include regulation and supervision as well as financial openness. But they need to do more to reinforce the institutional environment and to promote nonbank financial sector development. Based on our measurements, the MENA region performs better than most other developing country regions, but ranks far behind the industrialized countries and East Asia. However, within the MENA region there is substantial variation in the degree of financial development; some countries have advanced financial sectors, while for others progress in this area has been limited. The rest of the paper is organized as follows. We briefly review the literature on financial development and draw general overview of development in that region. Also we made a detailed study of our selected 9 countries to explore the opportunity to establish in that country. Further, we describe the data collected, and assess country details as per our required variables.
3.1 FINANCE SECTOR AND ECONOMIC GROWTH

There is a large and still growing research literature on financial development and its relationship with growth. Although the precise relationship between financial development and growth continues to be debated, there is general agreement that financial repression, or governmentimposed restrictions and price distortions on the financial sector, can inhibit growth prospects. There is also agreement that macroeconomic stability is critical for the growth of financial sector services. Countries should adopt appropriate macroeconomic policies, encourage competition within the financial sector, and develop a strong and transparent institutional and legal framework for financial sector activities. In particular, there is a need for prudential regulations and supervision, strong creditor rights, and contract enforcement. Therefore, government decision-makers should eliminate financial repression conditions as well as facilitate and support the process of financial development as important elements of their policy package to stimulate and sustain economic growth. Understanding the impact of financial development on economic growth, oras is our intention in this paperassessing the development of the financial sector in the MENA region requires

good measures of financial development. Empirical work is usually based on indicators such as the ratios of liquid liabilities to GDP, deposit money bank assets to total banking sector assets, and credit to the private sector to GDP. As noted above, long time series of these measures are available for a wide range of countries allowing us to compare and analyze development across countries and over time. However, these simple measures do not necessarily capture the different structural and institutional details of what is broadly meant by financial development. The financial structure of a country is composed of a variety of markets and financial products, and it is difficult to conceive of a few measures that could adequately capture all relevant aspects of development. In addition, the simple quantitative measures may at times give a misleading picture of financial development. For instance, although a higher ratio of broad money (or M2) to GDP is generally associated with greater financial liquidity and depth, the ratio may decline rather than rise as a financial system develops because people have more alternatives to invest in longer-term or less liquid financial instruments.
Going beyond the standard quantitative indicators, Gelbard and Leite (1999) used measures of market structure, financial products, financial liberalization, institutional environment, financial openness, and monetary policy instruments to construct a comprehensive index for 38 subSaharan African countries, for 1987 and 1997. Similarly, Abiad and Mody (2003) created an index for a 24-year period from 1973 to 1996 for 35 countries. They examined six measures of policy liberalization in the areas of credit controls, interest rate controls, entry barriers, regulations and securities markets, financial sector privatization, and restrictions on international financial transactions. These more-detailed measures provide a richer description of financial development, and motivate our measures of financial development in the MENA region. There has been very little work on measuring and assessing financial sector development in the MENA region, mainly because of the paucity of data. Our analysis builds on three studies that have examined financial development in MENA and broadly mirrors their conclusions. Chalk, Jbili, Treichel, and Wilson (1996) found that the thirteen MENA countries included in their analysis have made significant progress in financial deepening. But in most of these

countries financial markets are thin and tightly regulated, government ownership is prevalent, and market forces play a limited role. Nashashibi, Elhage and Fedelino (2001) also found that most Arab countries had made progress over the past decade in financial reform, but were still at an early stage in the process. Their financial systems are dominated by commercial banks, and, in some, by public banks, and capital market development is hindered by legal, institutional, financial, and economic factors. In comparison, Jbili, Galbis, and Bisat (1997) concluded that the financial sectors in the Arab states of the Gulf Cooperation Council (GCC) are developed, technologically advanced, and more integrated into the world economy than in the rest of the MENA region. This finding reflects the substantial differentiation in the degree of financial development in the region.
3.2 SCOPE OF STUDY

Having collected and organized the data according to the above themes, an analysis suggests common strengths, trends, and weaknesses, and points to future areas for development. MENA countries in general perform reasonably well in regulation and supervision. The main findings for the MENA region, according to the themes, are summarized below. Monetary policy: For the most part, interest rates (or rates of return) are freely determined, indirect monetary policy tools are employed, and government securities exist. But the limited development or nonexistence of secondary markets for government securities hinders the broad use of open market operations by central banks. In addition, a few countries do not follow a comprehensive framework for designing and conducting monetary policy. Banking sector: In a few countries, such as many of the GCC countries, the banking sector is well developed, profitable, and efficient. But in about half the region, this is not case. In many of these countries, the banking sector is dominated by public sector banks, which are characterized by government intervention in credit allocation, losses and liquidity problems, and wide interest rate spreads (or spreads in rates of returns). In more than half the countries, the banking sector is highly concentrated, with assets of the three largest banks accounting for over 65 percent of total
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commercial bank assets, and the entry of new banks is difficult. And in many parts of the region, there is an urgent need for developing modern banking and financial skills. Nonbank financial sector: In most of the region, the nonbank financial sectorcomprising the stock market, corporate bond market, insurance companies, pension funds and mutual funds needs further development. Where such markets exist, trading is usually quite limited. The development of these markets is complicated by legal limitations on ownership and the need for a clear and stable legislative framework. Regulation and supervision: Many MENA countries, such as the GCC
countries, Jordan, Lebanon, Morocco, and Tunisia, have strengthened banking supervision and regulation, they have established up-to-date procedures to collect prudential information on a regular basis, and they inspect and audit banks. They have taken steps to conform to international Basel standards by increasing capital adequacy ratios and reducing nonperforming loans. However, success in the latter has been limited, and for most countries nonperforming loans remain in the range of 10 percent to 20 percent of total loans. Financial openness: MENA countries have gradually opened up their current as well as capital accounts. Nearly half the countries have open financial sectors, although many maintain restrictions on foreign ownership of assets and repatriation of earnings. Some countries continue to maintain parallel exchange markets and/or multiple currency rates. Institutional environment: In much of the MENA region, the quality of institutions, including the judicial system, bureaucracy, law and order, and property rights, is poor. For instance, in several countries, the judicial system is susceptible to political pressure and long delays, resulting in poor legal enforcement of contracts and loan recovery. Property rights enforcement also tends to be weak. This hinders commercial activity and investment, and hence growth. Source: http://faculty.som.yale.edu/mushfiqmobarak/financial%20sector%20development.pdf
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INDUSTRIAL INTERNSHIP PROGRAMME 2011 3.3 RESEARCH OBJECTIVE

The main objective of our project is as follow: 1. To study the economic, political and financial sector and condition of MENA countries. 2. To explore the opportunity for Indian financial firm in MENA countries (Selected 9 country)
3.4 SAMPLING TECHNIQUE

Following variables are considered for our sample: 1. The country must be emerging economy. 2. Must have Indian Population 3. Financial sector is developing and must have many future development opportunity 4. Interest Rate and Tax system is studied. 5. Local Finance service providers and their products.
3.5 RESEARCH METHODOLOGY

Method of data Collection: Source of data: The study is based on Secondary Data. Study the Global Finance Service Study the Emerging Country Ratio of Indian Population in Emerging Country Financial Sector structure in these countries.
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Sampling Method: 1. On the basis of Indian population we have selected 40 countries. 2. Then on interest rate and tax rate we have selected 20 countries. 3. After considering all the variables lastly we have selected 9 countries. Bahrain United Arab Emirates (UAE except Dubai) Dubai Guyana Kenya Kuwait Qatar Saudi Arabia Uganda
4. Now, individually I have 3 countries which are as follows: Guyana Kenya Kuwait
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TABLE.1
LIST OF COUNTRIES WITH INDIAN POPULATION
It is the time for Indian Player to explore industry in foreign country, in this context we aimed to find such emerging country with dense Indian population with constraint of our variables. Following is the table of countries name and Indian Population in that country.
Country Name Australia Bahrain Belgium Canada China Denmark Figai France Germany Greece Guyana Indonesia Ireland Israel Italy Jamaica Japan Kenya Kuwait Lebanon Libya Malaysia Mauritious Myanmar Uganda UAE Nepal Netherlands New Zealand Oman Philippines Portugal Qatar Saudi Arabia Singapore South Africa Srilanka Thailand Indian Population 448000 350000 16000 1000000 67000 6500 314000 445000 75500 12000 322200 85000 19000 78000 71900 54000 22000 75000 579000 10000 15000 2050000 882000 256000 12000 1300000 600000 200000 1000000 557000 50000 800000 500000 1789000 580000 1218000 1600000 150000
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From the above table, developing countries with more number of Indian people is selected. We have short listed 20 countries looking to the Indian population residing in all the above countries. Our main focus was to select emerging country to have detailed study of their economy and living standard o f NRI. From above 40 countries, we selected 20 countries and found their Interest rates and Tax rates
TABLE.2 COUNTRIES INTEREST RATES AND TAX RATES

Countries Interest Rate (%) Tax Rate (%) Australia 4.75 30 Bahrain 2.15 Guyana 3.65 35-45 Indonesia 6.75 25 Israel 3 25 Kenya 6 30 Kuwait 5.5 15 Malaysia 3.7 25 Mauritius 4.01 15 Myanmar 10 30 Netherland 3.65 20-25 New Zealand 2.5 28 Oman 18 12 Portugal 9.19 25 Qatar 1.5 10 Saudi Arabia 3 20 Singapore 0.03 17 South Africa 5.5 28 Sri Lanka 7.9 35 Thailand 2.75 30 Above selected country is displayed below with their Interest rate and tax rate.Countries with low Interest rate are selected. Further study of economy and demographics of population is analyzed to know the potential of financial services in below selected 9 countries. Also the prevailing financial system in countries is taken into consideration.
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FINAL COUNTRIES TABLE.3
Country Name Population Interest rate (%)
1 2 3 4 5 6 7 8 9 Bahrain UAE(Except Dubai) Dubai Guyana Kuwait Kenya Uganda Qatar Saudi Arabia 3,50,000 1700000 3,20,000 5,79,000 75000 12000 500000 1789000 2.15 0 0 3.65 5.5 6 30 1.5 3
Tax Rate (%)

0 0 35 to 45 15 30 30 10 20
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CHAPTER 4: FINDINGS & CONCLUSION
Page 37
I.
GUYANA
4.1.1 DEMOGRAPHICS
Religion:
On religious affiliation indicates that approximately 57% of the population are Christian (of those, 17% are Pentecostal, 8% are Roman Catholic, 7% are Anglican, 5% are Seventh-day Adventist, and 20% belong to other Christian denominations). Approximately 28% are Hindu, 9% are Muslim (mostly Sunni), and 2% practice other beliefs (such as the Rastafarian and Baha'i faiths). An estimated 4% of the population does not profess any religion.
Indian Religion:
Most Indo-Guyanese are Hindus; substantial minorities are Muslims and Christians. Many of the Indians have roots from Uttar Pradesh, Bihar, Calcutta and Madras.
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Indian Population: 3, 22,200 Income Profile: Agriculture: 24.3% Industry: 24.7% Services: 51% (2010 est.) Age/sex Profile: 0-14 years: 31.9% (male 120,981/female 116,654) 15-64 years: 63.3% (male 235,566/female 235,717) 65 years and over: 4.8% (male 14,801/female 21,049) Language: Official language(s) English Recognised regional languages Guyanese Creole, Portuguese, Hindi, Spanish, Akawaio, Macushi,Wai Wai, Arawak, Patamona,Warrau, Carib, Wapishiana,Arekuna
4.1.2GDP RATE
Year 2003 2004 2005 2006 2007 2008 2009 2010 2011 GDP - real growth rate Rank Percent Change Date of Information 2.10 % .50 % 1.90 % -3.00 % 4.50 % 5.30 % 3.00 % 2.30 % 2.50 % 126 183 171 210 121 102 128 78 139 -76.19 % 280.00 % -257.89 % -250.00 % 17.78 % -43.40 % -23.33 % 8.70 % 2002 est. 2003 est. 2004 est. 2005 est. 2006 est. 2007 est. 2008 est. 2009 est. 2010 est.
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INDUSTRIAL INTERNSHIP PROGRAMME 2011 4.1.3 INFLATION RATE

Year Inflation rate (consumer prices) Rank Percent Change Date of Information 2003 2004 2005 2006 2007 2008 2009 2010 2011 4.70 % 5.70 % 4.50 % 6.90 % 6.00 % 12.30 % 8.30 % 2.90 % 6.80 % 74 66 138 157 146 206 129 102 168 21.28 % -21.05 % 53.33 % -13.04 % 105.00 % -32.52 % -65.06 % 134.48 % 2002 est. 2003 est. 2004 est. 2005 est. 2006 est. 2007 est. 2008 est. 2009 est. 2010 est.
4.1.4 MAJOR SOURCE OF INCOME

Gold, Sugar, Fishing/Shrimping, Rice farming, timber and Bauxite.
4.1.5 EXCHANGE &CURRENCY RATE

Currency in Guyana: Guyanese dollar (GYD) if you convert 1 US Dollar into Guyanese Dollar you will end up with a total of 204.9500 Guyanese Dollar
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INDUSTRIAL INTERNSHIP PROGRAMME 2011 4.1.6 TAX STRUCTURE

Guyana Income Tax Rate 33.33%
Guyana Corporate Tax Rate
35 or 45%
Guyana Sales Tax / VAT Rate
16%
4.1.7 TYPE OF POLITICAL SYSTEM

Guyana's long-term political risk profile continues to improve under President Bharrat Jagdeo's administration, encouraging us to revise up the country's score in our long-term political risk ratings. Although significant structural issues continue to hurt the country's political outlook, strong support for the government's economic reforms mean Guyana is well-placed to capitalise on increasingly favourable external conditions, which should further reinforce the country's longer-term political outlook. President Bharrat Jagdeo's sound macro-economic management and astute diplomacy are boosting Guyana's prominence at both the regional and global level, and in our view this is having a positive impact on the country's political risk profile. In terms of our long-term political risk ratings, the country retains the lowest score out of the five major Caribbean economies, due to structural issues ranging from wide ethnic divisions to a relatively weak constitutional framework.
4.1.8 MAJOR INDUSTRIES

According to Basdeo Mangru, by the first quarter of the 20th century, there were already 238 Indian jewellers; 445 shopkeepers; 845 hucksters; 259 milk-sellers; 12,465 rice farmers and 13,700 landed proprietors, agriculturists and cattle farmers.
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INDUSTRIAL INTERNSHIP PROGRAMME 2011 4.1.9 FINANCIAL SERVICES

Guyana improves supervision and access to financial services with IDB support The third and last programmatic IDB policy-based loan of $5 million will also improve payments system, enhance transparency and fight money-laundering Guyana will strengthen supervision and the regulatory frameworks of its financial system as well as boost transparency with the third and last programmatic policy-based loan of $5 million approved by the Inter-American Development Bank (IDB). The supervision capacity of the Bank of Guyana, increase dissemination of financial sector information, and support the implementation of legislation to combat money laundering and financing of terrorism. It is also supporting measures that will help expand access to financial services. Guyana is boosting efficiency with a framework for automated payments of public sector salaries and pensions, and also developing and implementing a system for a loss-sharing arrangement for large value transfers, consistent with international best practices. As part of the policy-based loan, Guyana has recently approved three pieces of legislation to strengthen oversight of the financial sector. These regulations give the Central Bank the
authority to supervise the majority of non-bank financial institutions, made up mostly of insurance companies, builders and money transfer businesses. In an important step to increase access to credit, the government also passed this year the Credit Reporting Bill 2009, which provides the framework for the creation of a credit bureau in Guyana. With this third loan, the IDB has provided a total of $15 million since December 2008 of budget support to accompany reforms of Guyanas financial system. Half of this latest IDB financing is made up of a loan from the Banks ordinary capital, with an amortization period of 30 years, a grace period of 6 years and a fixed interest rate. The other $2.5 million will come from the IDBs Fund for Special Operations. This portion will have amortization and grace periods of 40 years, and an interest rate 0.25 percent.
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4.1.10 Banking Services and Products
List of banks in Guyana
1. Bank of Baroda (GUYANA) Inc.
Personal Banking
Deposits 1. Deposit Products & Services Fixed Current Savings
2. Gen Next Services Gen-Next Junior Gen-Next Lifestyle Gen-Next Power Gen-Next Suvidha
3. Retail Loans Home Loan Home Improvement Loan Loan Against Future Rent Receivables Advance Against Securities Baroda Career Development
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Loan Two Wheeler Loan Traders Loan Baroda Ashray (ReverseMortgage Loan)
Home Loans to NRIs / PIOs Interest Subsidy Scheme For Housing The Urban Poor (ISHUP) Mortgage Loan Education Loan Auto Loan Loan to Doctors Personal Loan Loan for financing Individuals for subscription to Public Issues /IPO
Business Banking
Deposits Loans and Advances Services
Corporate Banking
Wholesale Banking Deposits
Loans and Advances Services

o Appraisal & Merchant Banking o Cash Management & Remittance
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NRI services in Bank of Baroda:
Products & Services Deposit Products
Foreign Currency Linked Rupee Deposits (FCLR) Scheme Non Resident External (NRE) (RUPEE) Savings Account Non Resident External (NRE) (RUPEE) Current Account
Non Resident External (NRE) (RUPEE) Fixed Deposits
Non Resident Ordinary Rupee Savings Account (NRO-SB)
Non Resident Ordinary Rupee Current Account (NRO-CA)
Non Resident Ordinary (NRO) (RUPEE) Fixed Deposits
Resident Fgn Currency A/c - for NRIs returning to India for settling in India
Resident Foreign Currency (Domestic) Account - for Resident Indians
Rupee Linked Foreign Currency Deposit (RLFCD) Scheme for NRIs Deposit Products at overseas centres Baroda Structured Deposit
Baroda Term Deposit
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Loan Facilities to NRIs
Housing Loans to NRIs / PIOs
Loans/Overdrafts Against Security of Non-Resident (RUPEE) Fixed Deposits
Loans Against FCNR (B) Deposits in Rupees
Loan Against FCNR (B) Deposits in Foreign Currency in India
Loan Facilities in Foreign Currency to Residents
Foreign Currency Loans In India (FCNR 'B' Loans)
Pre-Shipment/Post-Shipment Credit in Foreign Currency to Exporters
External Commercial Borrowing
Inbound Money Transfer Services
Rapid Funds2India BarodaRemitXPress Xpress Money Money Gram
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2.
Citizens Bank Guyana Inc
Products
Saving Account Loans ATM Money card Tele banking Remote Banking Night Depository Utility Payments
3. Demerara Bank Limited
Products and Services Saving Deposit account Chequing Account Money master Safety deposit boxes Night Deposit Phone Banking Foreign Exchange Loans and Over drafts American Express
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4. Guyana Bank for Trade and Industry Limited
Products and Services

GBTI offers a wide range of products and services including: Deposit Accounts Financing Facilities (loans) Foreign Trade Card Services Telephone Banking Safe Keeping Night Depository Utility Payments Payroll Processing
5. G.N.C.B. Trust Corporation
6. Globe Trust & Investment Co. Ltd
7. Globe Trust & Investment Co. Ltd
8. Guyana National Co-operative Bank
9. New Building Society Ltd
10. Republic Bank Guyana Limited
11. Scotiabank Guyana
All these banks Provides same kind of Products as above.
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II. KENYA
4.2.1DEMOGRAPHICS
Religion:
Protestant 45%, Roman Catholic 33%, Muslim 10%, Indigenous beliefs 10%, Other 2%
Indian Religion:
Hinduism, Islam, Sikhism
Indian Population: 75,000 Income Profile: agriculture 75%, Industry and services25% (2007 est.)
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Age/sex Profile: Total population is reported as 41.07 million as of June 2011, with an age structure of: 014 years: 42.3% (male 8,300,393/female 8,181,898) 1564 years: 55.1% (male 10,784,119/female 10,702,999) 65 years and over: 2.6% (male 470,218/female 563,145) Language: The Kenyan official national language is English, and it is wide spoken. There also another national language, Kiswahili. Both Languages are taught throughout the country. But Indian speaks English, Punjabi, Gujarati, and Hindustani.
4.2.2 GDP RATE

Year GDP - real growth rate Rank Percent Change Date of Information 2003 2004 2005 2006 2007 2008 2009 2010 2011 .80 % 1.50 % 2.20 % 5.80 % 5.70 % 7.00 % 1.70 % 2.60 % 4.00 % 167 160 162 74 80 53 163 74 85 87.50 % 46.67 % 163.64 % -1.72 % 22.81 % -75.71 % 52.94 % 53.85 % 2002 est. 2003 est. 2004 est. 2005 est. 2006 est. 2007 est. 2008 est. 2009 est. 2010 est.
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INDUSTRIAL INTERNSHIP PROGRAMME 2011 4.2.3 INFLATION RATE:

Year Inflation rate (consumer prices) Rank Percent Change Date of Information 2003 2004 2005 2006 2007 2008 2009 2010 2011 1.90 % 9.80 % 9.00 % 10.30 % 10.50 % 9.70 % 26.30 % 9.30 % 4.20 % 166 39 183 193 191 190 215 189 121 415.79 % -8.16 % 14.44 % 1.94 % -7.62 % 171.13 % -64.64 % -54.84 % 2002 est. 2003 est. 2004 est. 2005 est. 2006 est. 2007 est. 2008 est. 2009 est. 2010 est.
4.2.4 MAJOR SOURCE OF INCOME

Small-scale consumer goods (plastic, furniture, batteries, textiles, clothing, soap, cigarettes, flour), agricultural products, horticulture, oil refining; aluminum, steel, lead; cement, commercial ship repair, tourism.

The currency unit in Kenya is the Kenyan shilling (KES), comprising 100 cents (c). Coins are available in denominations of 5c, 10c, 50c and 1 and 5 shillings. KSh 65 per US Dollar (Equiv. stated as 0.0154 US dollar per Kenya Shilling).
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Tax Year: Tax year is the calendar year. Kenya Income Tax Rate Kenya Corporate Tax Rate Kenya Sales Tax / VAT Rate 30% 30% 16%
Kenya personal income tax rates are progressive up to 30%, as follows:
Yearly income (Kshs)
Tax Rate
0 to 121,968 121,969 to 236,880 236,881 to 351,792 351,793 to 466,704 Over 466,704
10% 15% 20% 25% 30%
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INDUSTRIAL INTERNSHIP PROGRAMME 2011 4.2.7 TYPE OF POLITICAL SYSTEM

The political system of Kenya is characterized by democratic republic government whereby the President is both chief of state as well as head of government. There is also a vice president and members of the Cabinet who make up the executive branch. The powers of the government in Kenya are distributed among the executive, the legislature and the judiciary. In the political system of Kenya, the judiciary is independent of the executive and the legislature.

More recent investments by Indian corporates in businesses in Kenya include Essar (telecom and refining), Bharti Airtel (telecom), Reliance (petroleum retail); Tata (Africa) (automobiles, IT, pharmaceuticals, etc.). Several Indian firms including KEC, Kalpataru Power Transmission Ltd., Kirloskar Brothers Ltd., Mahindra & Mahindra, Thermax, Emcure, Dr. Reddy, Cipla, Cadila, TVS and Mahindra Satyam, etc., have a business presence in Kenya as do the Bank of India and bank of baroda
Small-scale consumer goods (plastic, furniture, batteries, textiles, clothing, soap, cigarettes, flour), agricultural products, horticulture, oil refining; aluminum, steel, lead; cement, commercial ship repair, tourism
4.2.9 FINANCIAL SERVICES

The financial sector has grown considerably in importance throughout the 1990s, increasing its value contribution to the economy from KSh7, 069 million in 1991 to KSh9,843 million in 1996. In terms of GDP contribution, the financial sector accounted for 8.2 percent of GDP in 1991 and 10.1 percent in 1996. In the year 2011, approximately 81,000 Kenyans worked in the financial sector.
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As of the beginning of 1998, the highly diversified financial sector in Kenya consisted of the Central Bank of Kenya, 53 domestic-and foreign-owned commercial banks, 15 non-bank financial institutions, 2 mortgage finance companies, 4 building societies, and numerous insurance companies and other specialized financial institutions. The banking sector is dominated by 4 large banks, which aggregately control 50 percent of all bank assets and 52 percent of bank deposits. The largest bank, the state-owned Kenya Commercial Bank, accounts for 17 percent of bank assets and 18 percent of bank deposits. The multinational Barclays Bank, with 16 percent of bank assets and 15 percent of bank deposits, is next in line, followed by the state-owned National Bank of Kenya and the multinational Standard Chartered Bank, each respectively boasting 8 percent of bank assets and 9 percent of bank deposits.
The Nairobi Stock Exchange, which handles 61 listed firms, was established in 1954. In January 1995, the stock market, including stock-brokerage, was opened up for foreign direct participation, although there is a 40 percent limit on foreign ownership. Market capitalization has recently manifested considerable growth, increasing from US$1.89 billion in 1995 to US$2.08 billion in 1998. The Kenya banking system is supervised by the Central Bank of Kenya (CBK). As of late July 2004, the system consisted of 43 commercial banks (down from 48 in 2001), several non-bank financial institutions, including mortgage companies, four savings and loan associations, and several score foreign-exchange bureaus. Two of the four largest banks, the Kenya Commercial Bank (KCB) and the National Bank of Kenya (NBK), are partially government-owned, and the other two are majority foreign-owned (Barclays Bank and Standard Chartered). Most of the many smaller banks are family-owned and -operated
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INDUSTRIAL INTERNSHIP PROGRAMME 2011 4.2.10 Banking services & products

Following are Banks of Kenya:
1. ABC Bank (Kenya)
Retail & SME Banking Account SME Banking Product Deposit a/c Asset Financing. Project Financing Treasury Products Trade Finance Cash Management Solutions FOREX Credit Facilities Supply Chain Financing. Investment Accounts. Corporate Banking Business Advisory
Trade Banking
Treasury
2. Bank of India
Products Current Deposits Saving Bank Deposits Term Deposits Call Deposits
3. Barclays Bank
Consumer Banking Loans Accounts Barclay card Retail Internet Banking
Corporate banking Transactional Banking Asset Finance Trade Finance
Treasury Forex Risk Management Solution Investment Services
4. Citibank
Products & Services Cash Mangement Electronic Banking Trade Service Treasury Citi Services Corporate Finance
5. Commercial Bank of Africa
Corporate Business Corporate Banking Institutional Banking
Treasury
Investment banking
Personal Banking Deposits product Loan Product
Corresponding Banks Exchange/ Deposit rates
Accounts
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6. Cooperative Bank of Kenya
7. Credit Bank
8. Diamond Trust Bank
9. Gulf African Bank
10. I&M Bank
11. Imperial Bank Kenya
12. Kenya Commercial Bank
13. Middle East Bank Kenya
14. National Bank of Kenya
15. NIC Bank
16. Oriental Commercial Bank
17. Prime Bank (Kenya)
All the Local Banks provides same kind of products and services
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18. Standard Chartered Bank
Personal Banking
Priority Banking
SME Banking Business Plus Account
Comprehensive Wealth Accounts and Deposits Management Services
Special Privileges for Business Current Account owners
Business Premium Account
Savings Accounts
Access to a World of Privileges
Business Priority Account
Fee Waiver, discounts and My Dream Account Preferential Rates
Diva Account
Automated Banking Services
Executive Account Junior Account Fixed Deposit and Call Deposit

o
Investment Services
Credit Cards Emirates Standard Chartered Platinum MasterCard

o
Emirates MasterCard Gold & Classic Credit Card


o
Visa Gold & Classic Credit Card
o o
Services Branch Banking Hours Automated Banking Lobby

o o o
Phone Banking Online Banking SMS Banking
e-Statements
Loans Personal Loan
NRI Banking Introducing Standard Chartered NRI Services specially designed for Global Indians. India is one name that evokes thousands of emotions and nostalgic feelings amongst all NonResidents Indians, irrespective of the part of India they belong to. At Standard Chartered we understand how much your heart desires to be with your loved ones back home and support them in every need. So we have the pleasure in introducing our specially designed NRI Services to meet your financial commitments. Following are the available comprehensive NRI services:

Dedicated NRI desk NRE/NRO/FCNR Fixed deposits Indian Investment products Global Investment Products
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Insurance Advisory Indian Home Loans Loans against property Home Assist No minimum Balance requirement in NRE account Competitive conversion rate for Rupee remittances
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III. KUWAIT
4.3.1 DEMOGRAPHICS
Religion: Muslim 85% (Sunni 70%, Shia 30%), other (includes Christian, Hindu, Parsi) 15% Indian Religion: For Indians :-Islam. Sunnis are in majority. About 30% are Shias.
Indian Population: 5, 79,000 Income Profile: Age/sex Profile: Oil and oil-related products 0-14 years: 25.8% (male 348,816/female 321,565) 15-64 years: 72.2% (male 1,153,433/female 720,392) 65 years and over: 2% (male 25,443/female 25,979) (2011 est.) Language: Kuwait's official language is Arabic, and English is the second language.
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INDUSTRIAL INTERNSHIP PROGRAMME 2011 4.3.2 GDP RATE

Year 2003 2004 2005 2006 2007 2008 2009 2010 2011 GDP - real growth rate Rank Percent Change Date of Information -2.00 % 4.60 % 6.80 % 8.30 % 12.60 % 4.70 % 8.50 % -4.60 % 3.20 % 199 67 35 26 7 120 21 181 115 -330.00 % 47.83 % 22.06 % 51.81 % -62.70 % 80.85 % -154.12 % -169.57 % 2002 est. 2003 est. 2004 est. 2005 est. 2006 est. 2007 est. 2008 est. 2009 est. 2010 est.
4.3.3 INFLATION RATE

Year Inflation rate (consumer prices) Rank Percent Change Date of Information 2003 2004 2005 2006 2007 2008 2009 2010 2011 2.00 % 1.20 % 2.30 % 4.10 % 3.00 % 5.50 % 10.60 % 4.00 % 3.80 % 159 184 72 123 84 133 155 129 107 -40.00 % 91.67 % 78.26 % -26.83 % 83.33 % 92.73 % -62.26 % -5.00 % 2002 2003 est. 2004 est. 2005 est. 2006 est. 2007 est. 2008 est. 2009 est. 2010 est.
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INDUSTRIAL INTERNSHIP PROGRAMME 2011 4.3.4 MAJOR SOURCE OF INCOME

Kuwait has an open economy with proven crude oil reserves of about 96 billion barrels (15 km), i.e. about 10% of world reserves.
Petroleum accounts for nearly half of GDP, 90% of export revenues, and 5% of government income. Export of oil marked the beginning of the new era in which oil sector began to play a key role in the growth of National economy.
Kuwait has limited arable land, which limits the agricultural development. Fisheries serves as the major food source locally available. Kuwait is a great importer of food imports.
About 75% of potable water must be distilled or imported.
Industry plays an important role in economic development in Kuwait as it supplies goods and services to the nation.
The government is playing an important role in encouraging the expansion of industry by giving loans, providing infrastructure facilities and by supporting the newly established industries.

The Kuwaiti Dinar (KD) exchange rate policy is controlled by the Central Bank of Kuwait. Kuwaiti Dinar subdivided into 1000 fils is freely convertible. 1 KD = US$ 3.59 (approx); 1 KD = Rs. 162 (approx)
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Kuwait Income Tax Rate Kuwait Corporate Tax Rate Kuwait Sales Tax / VAT Rate 0% 15% 0%
Kuwait tax planning services: - (corporate and personal tax). We advise clients on latest corporate and income tax rates in Kuwait, and assist our clients to prepare and submit Kuwait tax returns. Healy Consultants' Kuwait tax planning services include advice on Kuwait company formation, and this is one of our core Kuwait tax planning services. The correct corporate structure is essential to ensure international business is conducted tax-efficiently and legitimately when starting a business in Kuwait. International tax planning :- (tax minimising & wealth managment). Keeping abreast of international tax legislation is at the heart of a successful tax minimisation strategy. Healy Consultants' tax experts keep clients informed of regulatory changes in Kuwait before they can have any negative impact, and is therefore one of our most valuable Kuwait tax planning services. Additionally, our Kuwait wealth management services can legally help clients minimise international tax liabilities. Companies incorporated in jurisdictions such as Kuwait pay no tax on revenues sourced outside the country. Many countries have also signed double taxation treaties with other countries to prevent taxes levied twice on the same income, profit, capital gains or inheritance. Our Kuwait wealth management services also take into account confidentiality and privacy concerns. Tax Year: Tax year is the calendar year.
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INDUSTRIAL INTERNSHIP PROGRAMME 2011 4.3.7 TYPE OF POLITICAL SYSTEM

The State of Kuwait is a constitutional emirate with a parliamentary system of government. Kuwait gained independence from the UK on June 19, 1961. Its constitution, which combines aspects of both presidential and parliamentary systems of government, was approved and put into effect in 1962.

According to the Kuwaiti Ministry of Interior, there are approximately 640,000 Indians, who constitute the largest expatriate community in Kuwait. The Indian community is regarded as the community of first preference among the expatriates in Kuwait. Kuwait views India as a fast growing economy and a source of highly qualified professional and technical personnel. A large proportion of the Indian expatriates are unskilled and semi-skilled workers. Professionals like engineers, doctors, chartered accountants, scientists, software experts, management consultants, architects; skilled workers like technicians and nurses; semi-skilled workers; retail traders and businessmen are also present in the Indian community. The total remittance from Kuwait to India is estimated to be upwards of US$ 3.5 billion annually.
Approximately 300 associations exist within the Indian community in Kuwait, representing a variety of regional, professional and cultural interests. Of these, 133 Associations are presently registered with the Embassy. Cultural events are organised regularly by these associations through the year, to which leading Indian artistes are often invited.
There are 17 Indian Schools in Kuwait affiliated to the Central Board of Secondary Education, New Delhi.
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INDUSTRIAL INTERNSHIP PROGRAMME 2011 4.3.9 INDIAN COMPANIES IN KUWAIT

Indian companies have made a name for themselves in Kuwait. Telecommunication Consultants India Ltd. (TCIL) has bagged contracts worth US$ 100 million since liberation. The Southern Petrochemical Industries Corpn. (SPIC) has formed a local joint venture, Gulf SPIC Contracting Co and has formed a local joint venture, Gulf SPIC Contracting Co and has been handling some important projects in the oilsector. M/S Larsen & Toubro Ltd., are active in Kuwaits petrochemicals and construction sectors. Some Indian companies from the medical, IT and Insurance and banking sector have been operating successfully in Kuwait.
4.3.10FINANCIAL SERVICES
Overview The banking system in Kuwait consists of the Central Bank of Kuwait, ten domestic banks and five branches of foreign banks (HSBC Bank Middle East, BNP Paribas, Citibank, the National Bank of Abu Dhabi and Bank of Bahrain and Kuwait). In addition to the 13 commercial banks, there are two specialized banks in Kuwait, the Industrial Bank of Kuwait and Kuwait Real Estate Bank.
The Kuwait Finance House and Boubyan Bank are the only licensed deposit-taking institutions offering a full range of Islamic banking products. In terms of both assets and capital, the market is dominated by the National Bank of Kuwait. The National Bank of Kuwait has the most extensive international banking presence, with subsidiaries and branch offices in Bahrain, Iran, Jordan, Lebanon, London, New York, Paris, Qatar, Geneva, Saudi Arabia, Singapore, Thailand and Vietnam, and acquired Credit Bank of Iraq in May 2005. Despite the governments effort to divest its ownership in the banking sector, a number of local banks continue to have substantial government ownership. At present there are five branches of different foreign banks operating in Kuwait and foreign investment in local banks is limited. The emergence of foreign banks and the acquisition by Bahrains Ahli-United Bank of a 75% stake in the Bank of Kuwait & the Middle East appear to mark a move towards greater internationalization of the Kuwaiti banking sector.
INDUSTRIAL INTERNSHIP PROGRAMME 2011 4.3.11Banking Products and Services

Kuwait
1. The Industrial Bank of Kuwait
Financial institution that provides loans to industrial projects and agriculture
Industrial Finance Long term Industrial Loans Islamic Industrial Finance
Corporate Banking Treasury & Direct Investment Managed Protfolios
2. Al Ahli Bank of Kuwait (ABK)
Provides retail banking, corporate banking (loans, letters of credit, payment services), treasury & investment services (foreign exchange & interest rates services & advice); has a retail banking network of 13 branches in Kuwait, and one in Dubai
Retail Accounts Loans
Corporate Banking Investment units Financial Institutions Unit
Treasury
International
Cards
Trading and Commercial Unit Contracting unit Services Unit SME unit
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3. Commercial Bank of Kuwait (CBK)
Bank offering personal banking, corporate banking, Tijari funds, investment services etc; operates the second largest domestic network comprising 48 branches
Personal Banking
Corporate Banking
Tijari Fund (Fund Management)
Rates & market
Checking Account
Online Banking
Investment Fund
Foreign Exchange Rates
Saving Account CBK Cards
Treasury Services International Credit
GCC Equity Fund Islamic Fund
Deposit Rates
Term Deposits Loans
Trade Finance
India Fund
India Fund
Fund Objective To achieve superior returns over the medium to longer term horizon.
Fund Strategy The Fund are invested its assets in indian equity markets Available surplus cash is invested in all type of liquid Money Market instruments.
Fund Description Open-ended Fund. Life of the Fund is 10 years. Fund's capital will be in the range of KD 5 Million to KD 100 Million. Minimum subscription is 500 Units (and in multiples of 100 units thereafter).
Subscription / Redemption Weekly Subscription; applications can be submitted up to Monday (NAV Day) not later than 1 PM. Redemption is available twice a month. (on 2nd and 4th Monday). Redemption applications must be submitted 7 working days prior to prescribed day.
Fee Subscription fees : 1.00% Redemption fees : 0.25% Management fees : 1.50% Custody fees : 0.10%
Client Assurance CBK Capital will maintain a minimum 5% investment in the Fund at all times.
Target Clients The Fund is open to all Kuwaiti nationals, Expatriates,Corporations and Institutions.

4. Gulf Bank
Safat-headquartered bank; activities include retail banking, corporate banking, treasury & investment management and international banking; has branches in Hawalli, Al-Hajra, Ahmadi, Farwaniya, Mubarak Al-Kabeer etc
Personal Banking
Priority Banking
Business Banking
Corporate & Institutional
Accounts Credit cards Loans Saving and In vestment Day and Night Services
Banking Products Priority Benefits Investment
B- Account Credit Facilities Business Services
Corporate Advisory Treasury
5. National Bank of Kuwait (NBK)
Commercial bank; services offered include retail banking, corporate finance, project finance, underwriting, initial public offerings, advisory and financing services for BOT projects etc
6. Jordan Kuwait Bank
Bank jointly set up in 1976 by Jordianian, Kuwaiti and other Arab investors; has branches in Jordan, Algiers, Cyprus and Nablus; offers individual and corporate banking, and treasury services
Products and services Individual Corporate Correspondent bank

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Treasury Market Margin Dealing Treasury Operations Custodial Services
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INDUSTRIAL INTERNSHIP PROGRAMME 2011 4.4CONCLUSION:

Kuwait is one of the strongest in MENA region benefiting from a robust financial profit and strong support mechanism. Kuwait has stable growth in its GDP except 2007, and has tended to negative in 2010 because of financial crisis. Also the inflation rate is normal. Government of Kuwait follows an open economy. The banking sector is in the evolvement phase experimenting increasing diversification & product innovation. The banking systems strengthens from supportive government policy & is further assisted by higher than average capitalization. In the government friendly economy & rising financial sector, Indian firm can establish in Kuwait to provide financial services and also various NRI services to 5,00,000 NRIs residing over there.
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CHAPTER 6: OTHER ASSIGNMENTS
Page 73
Project report on Awareness about E-Trading Platform in Financial Market.

For MOTILAL OSWAL SECURITIES LTD.
Prepared By Bhavik Shah Niyati Patel Shikha Agrawal
Under Guidance of: Dr. Himani Joshi (Assistant Dean)
Company guide: Mr. Pulkit Bakliwal (Business Associate)
Stevens Business School

EXECUTIVE SUMMARY
It is well evident that work experience is an indispensable part of every professional course. In the same manner practical training is must for each and every individual who is undergoing with management course. Without the practical exposure one cannot consider himself or herself as a qualified capable manager. During the project period student can learn through his own experience, the real situation of market and corporate world and to put his theoretical knowledge into practice. Hence to fulfill the requirement, we have completed our Two Months Internship in Motilal Oswal Securities Ltd. on the topic Awareness about E-trading Platform in financial market, given to us by our company guide.
Being new to the Stock Market, we have engrossed fully into the sector where we were told to understand the basic of stock market, the effect of recession on this sector, also we were told to analyze the market, that people prefers online trading and also to analyze their investment pattern, which would be helpful for the company to find a suitable target population.
We were also told to make calls and generate the investors for the company. Some time we have to extract the information from our sources because no one is there waiting for you its actually you, which have to make things happen in your favor. Every day have its own experience and a short-term goal. So after coming in corporate world as a fresher we realized that here no one is free to spoon feed you the realities of corporate world, so we learn this lines that let the dreams of today determine the opportunities of tomorrow and we inculcated the same positive attitude in to us so that we would work there effectively and efficiently.
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INDUSTRIAL INTERNSHIP PROGRAMME 2011 TABLE OF CONTENTS

S.No. Topic Page No. Title Page Executive Summary Chapter 1 1.1 1.2 1.3 1.4 Chapter 2 2.1 Chapter 3 3.1 3.2 Chapter 4 4.1 Overview Of Industry Introduction to Broking Industry Overview of Indian stock market Primary insights of broking industry Major players in the industry Introduction of Motilal Oswal Motilal Oswal Products & Services Introduction to the project Objective of project Limitations of project Research Methodology Methodology used for this Project 74 75 79 80 83 84 87 91 92 105 107 107 108 109
Chapter 5
Data Analysis Basic Tables
110 111
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5.1 5.2 5.3 5.4 5.5 5.6 5.7 5.8 Chapter 6 Hypothesis Relation between gender and investment pattern Relation between education and investment pattern Occupation and investment pattern Awareness of various investment avenues based on age group Frequency of income group respondents Frequency of influencing factors Ranks of various investment avenues Recommendations 112 113 114 115 116 120 120 125 130
6.1 6.2
Recommendations Training Annexure
131 132 134 134 136
Survey Questionnaire Bibliography
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CHAPTER: 1 OVERVIEW OF INDUSTRY
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INDUSTRIAL INTERNSHIP PROGRAMME 2011 1.1 Introduction to Broking Industry

Equity Broking Industry: A Financial Analysis
Companies selected for this financial analysis comprise listed (excluding Z group companies) and unlisted securities broking houses. These companies were further screened and selected based on the availability of audited financials for FY10. Every company in the sample has generated a portion of income from brokerage services during FY10. To focus solely on performance of the equity broking industry, we excluded companies that operate in insurance or commodity broking. Thus, the final sample comprises 33 companies including 16 listed ones. To capture the dynamic nature of the broking industry, we have categorized these companies as large ( 3,500 mn or more), medium (between 500 mn and 3,500 mn), and small companies (less than 500 mn) based on broking income. Turnover in the cash and derivatives segment recovered significantly in FY10. The cash segment, which slumped almost 25% during FY09, grew 43.2% to 55.2 trillion1. Turnover in the NSE cash market surged 50% to 41.4 trillion while that in the BSE cash market increased 25.3% to 13.8 trillion. (SEBI annual report 2009-10)
Turnover in the equity derivatives market jumped 60.3% to 176.6 trillion in FY10. NSE remained the dominant exchange with more than 99% share in equity derivatives turnover. The NSEs average daily turnover increased significantly by 59.1% y-o-y to 720.97 bn during the fiscal.
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Improvement in cash and equity derivatives turnover of the BSE and NSE in FY10 translated into healthy income growth of 20.8% to 54,983 mn for the sample broking companies. Large companies constituted 64.7% of the overall income while mid-size and small ones accounted for 26.8% and 8.5% respectively. Three financial services segment (fund-based services, fee-based services and treasury operations) are the key sources of operational income for the sample broking companies. Fee-based services, including broking services, contributed to 83.8% of these companies income. Overall fee-based services of the sample broking companies grew by a healthy 31.8% to 46,064.4 mn during the fiscal. On the other hand, income from fund-based services (10.4% share) and treasury operations (4.2% share) declined 15.5% and 0.3% respectively.
Growth in total income of broking companies was largely led by income from broking services, whose share in total income increased from 66.4% in FY09 to 74.9% in FY10. Large companies, which have a much more diversified business compared with mid-size and small broking firms, generated 72.9% of total income through broking in FY10. Aggregate broking income of these companies grew 34.1% y-o-y to 25,934.2 mn during the fiscal. Mid-size broking companies generated the highest proportion (78.6%) of income through broking during

FY10. Their broking income grew a healthy 39.8% y-o-y to 11,573 mn. Broking income of small broking companies grew the fastest among the rest, increasing 40.8% to 3,665.9 mn. Robust performance of large, mid-size and small broking companies in the broking segment led to overall growth of 36.2% to 41,173.1 mn in broking income of the sample companies.
Overall profit of broking companies soar; small companies see a turnaround

Aggregate profit of the broking companies eroded more than 60% and 70% at the operating (EBIDTA) and net (PAT) levels, respectively, in FY09 because of repercussions of the global financial crisis on the Indian stock market. The profit trend changed for the companies with overall profit at the operating level growing 86% to 19,990 mn during FY10. Operating profit of the large companies, which contributed almost 72% to overall operating profit of the sample, grew 53% to 14,369.4 mn during the year. Aggregate operating profit of mid-size companies, which slumped 83% to 1,293.6 mn during FY09, jumped more than three times to 4,747.1 mn in FY10. Small broking companies also saw substantial growth from 52.8 mn in FY09 to 341.7 mn in FY10. Overall net profit of the sample broking companies increased substantially by 178% to 10,965.2 mn during FY10. Net profit of the large firms increased 95% to 8,131.3 mn while that of mid-size ones increased more than 20 times from 109.2 mn in FY09 to 2,492.2 mn during the year. Small companies, which had recorded a loss of 330.6 mn at the net level during FY09, saw a turnaround, recording profit of 341.7 mn.
The investment break-up of broking companies reveals that substantial proportion of their investments is in equity shares and mutual funds. Large broking companies invested almost 75% of their total investments ( 25,122.9 mn) in equity shares during FY10. The book value of

investments in equity shares by a large company declined 1.8%. Investments made through mutual funds, on the other hand, increased 51.2% y-o-y to 7,646.6 mn during the same period. Mid-size broking houses invested 50.2% and 47.3% of their total investment in equity shares and mutual funds, respectively. Their book value of investments in equity shares and mutual funds increased 0.3% and 18.2% to 1,672.8 mn and 1,577.7 mn respectively. The investment value of small companies grew the fastest among broking companies. The total book value of their investments in equity shares and mutual funds increased 16.1% and 316.6% to 1,349.8 mn and 695.3 mn, respectively.
1.2 An overview of the Indian stock market

The Indian economy is one of the fastest growing in the world, despite only moderate growth seen during FY09. After slow growth of 6.7% during FY09, the economy bounced back to a long-term growth rate of 7.4% in FY10, as per Central Statistical Organisation (CSO) advance estimates. Recovery in GDP growth was broad based, except for agriculture. Seven out of eight sectors/sub-sectors showed growth of 6.5% or higher. Industry output, which was affected by the cyclical slowdown, international commodity price shocks in FY08, and the global recession in FY09, recovered substantially in FY10. Along with the recovery in industry and core infrastructure sectors, upturn in business and consumer confidence reflected in the revival of consumption and investment demand. The overall improvement in the global economic and financial conditions also boosted the external economy, with the revival in exports and capital flows.
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Trading frequency improves in both BSE and NSE
Liquidity in the stock markets is measured by trading frequency of listed stocks at the BSE and NSE. The number of securities listed at end-Mar 2010 was 8,072 at BSE. At NSE, the number of securities listed was 1,359 as on Mar 31, 2010. Trading frequency improved YoY at both the stock exchanges in FY10. During FY10, the number of securities traded in the BSE was 3,371 compared with 3,246 in FY09. Similarly, the number of securities traded on the NSE was higher y-o-y at 1,401 in FY10 compared with 1,301 in FY09. The percentage share of securities traded at BSE above 100 days marginally increased from 87.2% in FY09 to 88.6% in FY10. At NSE, this percentage decreased from 97.8% in FY09 to 92.9% in FY10. The percentage share of securities traded for less than 10 days was 4.1% at the BSE and 0.9% at the NSE in FY10.
1.3 Primary Insights of Broking Firms in India

The Indian equity broking industry has gained momentum in terms of scope and scale. The industry has tremendous opportunities as India moves toward adding another trillion in GDP. Competition in the broking space has intensified with entry of new firms and recognized brands with strong balance sheets. With the Indian securities market experiencing rapid growth and financial integration gaining speed, the role of intermediation will strengthen further. However, in the long term, quality and maturity of services would determine the success and sustainability of firms in this industry. Key factors driving growth and success in the broking industry would be distribution networks, diversification of services, expertise and research, transparency and disclosure, and compliance and market integrity. Technology will be one of the key growth drivers since ability to scale up businesses and engage customers and yet manage costs can only be possible with state-of-the-art technology in place. Customers require access to latest information and analytical tools, to engage effectively in the capital markets due to the real-time environment in which we operate. D&B India has sought to provide coverage of the Indian equity brokerage industry through this publication. This section provides key insights into this important segment of the financial

services industry. The information collected from firms profiled in this edition has been analysed to provide a understanding on various operational aspect of these firms such as reach, access, employees and markets served. The sample of firms for this study comprises those that had responded with the requisite information to questionnaires administered by D&B India.
More than 50% of companies are engaged in three market segments

Most of the sample companies have operations in different market segment besides equity cash. Majority of the companies are engaged in three market segments, with companies operating in cash, equity derivative and currency futures constituting 50.8% of the overall sample. Moreover, 17% of the companies have operations in four market segments. Of these companies, majority of them operated in cash, equity derivatives, debt as well as currency futures. Companies dealing in all market segments comprising of equity cash, equity derivatives, debt, currency futures and commodities amounted for only 1.6% of the entire market segment of the profiled companies Broking companies that operate in the cash, equity derivatives as well as currency future segments formed approximately 49% of the sample companies. Those operating in cash, equity derivatives, and debt and currency future segments accounted for approximately 11% of the sample companies.
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Western region has highest number of companies
Following the trend of previous years studies in 2008 and 2009, the western region continues to be the biggest region in terms of broking companies. More than 50% companies, that form a part of the current publication, were based in western India (Gujarat, Maharashtra and Dadra & Nagar Haveli). City-wise, Mumbai leads the pack with 41% companies, followed by Ahmedabad Rajkot, Vadodara and Surat.
Broking activities are emerging in a number of cities other than the main ones and the metros. Backed by the growing broking culture across the country and the onset of IT has enabled many equity broking firms to broaden their network across the country. Almost 34% of the terminals in the sample are based in the Western region where Mumbai holds maximum representation, followed by Ahmedabad at 11%. In the southern region, Chennai, Hyderabad and Bengaluru account for 5% of the terminals, whereas in the North, Delhi has maximum share at 17%, followed by Kolkata at 11% in the eastern region. Other cities such as Vadodara, Jaipur and Pune have 3%, 4% and 5% shares respectively.
http://www.dnb.co.in/EquityBroking2010/Equity_Broking_Industry.asp
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INDUSTRIAL INTERNSHIP PROGRAMME 2011 1.5 Major Players in the Industry

Among all the Indian brokerage companies, the top 10 Brokerage Firms in India can be listed as below: Name Terminals Sub Brokers No. of Employees No. of Branches Name Terminals Sub Brokers No. of Employees No. of Branches Name Terminals Sub Brokers No. of Employees Kotak Securities Limited 4320 910 4008 350 Karvy Stock Broking Limited 1700 19000 3910 581 Indiabulls 2876 NA 5873
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522 No. of Branches
Name Terminals Sub Brokers No. of Employees No. of Branches Name Terminals Sub Brokers No. of Employees No. of Branches Name Terminals Sub Brokers
IL&FS Investmart Limited 1644 NA 1900 294 Motilal Oswal Securities 7923 890 2193 63 Reliance Money 2428 1494
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No. of Employees No. of Branches Name Terminals Sub Brokers No. of Employees No. of Branches Name Terminals Sub Brokers No. of Employees No. of Branches Name Terminals Sub Brokers No. of Employees 2037 142 India Infoline 173 173 NA 605 Angel Broking Limited 5715 NA 284 NA Anand Rathi Securities Limited 1527 320 4566
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No. of Branches Name Terminals Sub Brokers No. of Employees No. of Branches 220 Geojit 627 247 343 314
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CHAPTER: 2 INTRODUCTION TO MOTILAL OSWAL
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INDUSTRIAL INTERNSHIP PROGRAMME 2011 2.1 Motilal Oswal Products and Services
Today Motilal Oswal is a well diversified financial services firm offering a range of financial products and services such as
Equity Derivatives Online Trading Commodities Mutual Funds Distribution IPOs Depository Services Portfolio Management Services Wealth Management
EQUITY
In keeping with its tradition of personalized service, Motilal Oswal Securities Limited
provides Customized Equity Advisory Group to clients based on their profile. Equity Research is an inherent strength of MOS. Converting that research to advice is the main function of Equity Advisory. Investors are presented with well researched opportunities in companies which will grow in both market perceived value and growth. Alongside, the trading fraternity is catered to with ideas induced by Technical analysis and news flow analysis. The investment ideas identified by the research team are presented and communicated with conviction to our clients by our advisory team.
Our advisory team has highly trained equity professionals, who act as your Equity
Advisor. MOS Equity Advisor proactively helps you take informed equity investment decisions and build a healthy portfolio giving the best fit to your investment and trading needs.
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Centralized Advisory Desk (CAD)

The MOS Equity Advisory Group is based in Mumbai at largest dealing and advisory floor of India. This centralized advisory team caters to peculiar Investment need of every HNI & MNI client and business partner; in a seamless, speedy and reliable manner using state-of-the-art technology and telecommunication infrastructure.
MOS Equity Advisors are equipped with the knowledge and prudence making sure that
every rupee deployed works the hardest it can. Your advisors play the part of a guide ushering you on a swift wealth creation ride. The sheer strength of our advisory creates synergy for seamless flow of Investment support.
To improve the overall experience while the clients interact with our advisors, we have
implemented a contact centre solution, Drishti, in our dealing room. Among other benefits, this solution helps advisors to manage their client base more efficiently and effectively. The system provides a single number contact to all our clients as well as a single click auto-dial for advisors without having to remember their contact details.
Online Motilal Oswal Investment Services offers you a state-of-the-art Online Trading
platform that gives you
DERIVATIVES Futures &Options (F&O):

Futures & options are derivatives, which use equity as their underlying. Hence our Equity Advisory Group (EAG), will also act as your advisors for F&O & help you take informed decisions while trading in these derivative instruments.
Why F&O:
Since derivatives instrument provide good leverage opportunity, it is a great tool for speculation. Leverage is a double edge sword for which one requires an equity advisor. Our advisors will also help you with various strategies like Bull Spread, Bear Spread, Cover call writing, hedging strategies etc. This is to help you to make better trading returns. The

Equity Advisor doesnt stop at just that, he goes a step further to ensure that your trades are settled and traded with proper margin in your account in a timely manner. This allows us to give you a convenient single window service and your advisor becomes the single point contact for all your equity related matters. You can avail of our services from all our Business locations and through E broking across India, as in equities
ONLINE TRADING Web Features of Web Trading Platform

Simple, yet Powerful
Easy to use interface for first time investors Trade from any internet connected PC Multiple scrips with refresh option (static)
Screenshot is for illustrative purpose only Feature-rich Platform Screenshot is for illustrative purpose only Single window order placement with instant confirmation Trade from any internet connected PC Tick-by-Tick market watch (BSE/NSE/F&O)Shortcut keys for faster access
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Desktop
Features of Desktop Trading Application
Single window order placement with instant confirmation Tick-by-Tick market watch (BSE/NSE/F&O) Shortcut keys for faster access
Screenshot is for illustrative purpose only
Mobile
Features of Mobile Trading
Live streaming quotes Directly buy/sell from market watch Modify/Cancel facility for pending orders Access live advice from Motilal Oswal Instant access to Top Gainers, Losers & Traded Value along with indices Market Depth of scrip selected Synchronized position whether order/trade done from Mobile/Web/Desktop/Call N Trade
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CALL N TRADE
Features of Trading on Phone (Call N Trade) All our customers enjoy Call N Trade services at no additional cost.
COMMODITIES
Ever since the dawn of civilization commodities trading have become an integral part in the lives of mankind. The very reason for this lies in the fact that commodities represent the fundamental elements of utility for human beings. Over the years commodities markets have been experiencing tremendous progress, which is evident from the fact that the trade in this segment is standing as the boon for the global economy today. The promising nature of these markets has made them an attractive investment avenue for investors. Earlier investors invested in those companies, which specialized in the production of commodities. This accounted for the indirect investments in commodity assets.
WHY COMMODITIES
The commodity based products offer a huge array of benefits that include offering risk-return trade-offs to investors, providing information on market trends and assisting in framing asset allocation strategies. Commodity investments are always considered as defensive because during the times of inflation, which adversely affects the performance of stocks and bonds, commodities provide a defense to investors, maintaining the performance of their portfolios. Commodity markets have a huge potential in the Indian context particularly because of the agribased economy. With the government's initiative for agricultural liberalization, commodities' trading in India has gained increased momentum in activities. To increase the efficiency of the markets the Forward Markets Commission (FMC), the governing body of
commodities trading in India has taken several initiatives for the establishment of national level multi-commodity exchanges in India.
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WHY MOCBPL?
Motilal Oswal Commodities Broker Pvt. Ltd. (MOCBPL) is a fully owned subsidiary of Motilal Oswal Financial Services Ltd. and has been providing commodity trading facilities and related products and services on MCX and NCDEX. Besides access to the best of research in the form of Daily Fundamentals & Technical Reports on highly traded commodities, our clients also get access to our exclusive Customized Trading Advice on both the trading platforms. A Unique Experience
Solid Research: Client at MOCBPL gets access to the best of research in the form of Daily Fundamental and Technical Research Reports on highly traded commodities. One Stop Shop: MOCBPL provides end-to-end advice for all the commodities to all our prestigious individual investors. Privileged customers also get exclusive & customized advice.
Dual Membership: MOCBPL has membership to MCX and NCDEX exchanges which gives the clients to take advantage of the dual exchange trading facility provided by us.
Personalized
Service: We
provide
personalized
service
through dedicated
relationship managers for quick and efficient execution of transactions and for regular follow ups.
MUTUAL FUNDS
Investments can seem complicated and mystical. Since all the traditional investment avenues like bank deposits, RBI Bonds, NSC, KVP etc are becoming unattractive with the interest rate falling continuously, one needs to look for other investments alternatives. Mutual funds offer the ideal platform to participate in the Equity & Debt market indirectly through professional management.
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Mutual funds are becoming the most popular investment vehicles offering various kinds of schemes with different investment objectives. Investments through Mutual funds are one of the safest, easiest and convenient ways of making successful investments. The investments are in congruence to the laid down investment objectives securing the goals & objectives of the unit holders.
At Motilal Oswal Securities Ltd, we understand the importance of financial goals of our privileged clients and provide you comprehensive solutions to all your financial needs. Through our tailor made portfolios, we serve your needs better and help you make informed investment decisions. Our dedicated Mutual fund desk gives you Solid advice backed services thus giving you the edge that you always wanted. At Motilal Oswal, we offer two distinct modes of investment to suit your specific needs. The client may choose to apply online for Mutual Funds or call up one of our relationship managers to help you place orders in Mutual Fund schemes. Mentioned below is a brief description of the services that we offer to our clients: Need based advisory, fully backed with solid research. Dedicated Mutual fund advisors to understand your needs and help you build a tailor made portfolio. Monthly review of portfolios. Monthly Fact-sheet covering our analysis of various funds. Knowledge sharing through educational seminars and workshops
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IPOS Introduction
Book Building and Fixed Price Issue are the two types of Initial Public Offerings (IPOs) through which a public company can raise money in the capital market.
In a book building public issue the bids are received at different price levels and the demand for the issue is built up over a period of time. Depending upon
the bids received at different price levels the issue price is ascertained. In a fixed price issue the issue price is pre ascertained by the issuer. Book Building means a process undertaken by which a demand for the securities proposed to be issued by a body corporate is elicit and built up and the price of the security is assessed on the basis of the bids obtained for the quantum of securities offered for subscription by the issuer. This method provides an opportunity to the market to discover the price for securities. In case of a fixed price issue the issue price is fixed.
ONLINE IPO
MOSL facilitates the IPO application for all of its clients through online platform. Using the Online IPO service, an existing can apply for the IPO using the online facility.
Source: https://onlinetrade1.motilaloswal.com/
DEPOSITORY SERVICES
In the times of T+2 having a de-mat account linked to your trading account becomes really convenient. The non-trading clients can also avail of MODES.
Today MODES is available at all business locations of Motilal Oswal. In terms of number of accounts MODES is the second biggest Depository Participant in CDSL with over 150,000 accounts. The trust they have in Motilal Oswal is reflected by their cumulative holding in MODES worth over Rs. 3400 crores.
Holder of a MODES account receives regular account reports and an efficient service at all times. Clients having holdings over Rs. 10 lakhs receive special SMS service. They get recommendations on their holdings based on Motilal Oswal Research rated the "Most Independent Research - Local Brokerage" by Asia Money Brokers Poll 2006.
BENEFITS
As an investor you will enjoy many benefits if you buy and sell shares in the depository mode. The following are some of the benefits you will enjoy: No bad deliveries No risk of loss, mutilation or theft of share certificates No stamp duty for transfer of shares Reduced paper work Fast settlement cycles Low interest rates on loans granted against pledge of dematerialized securities by banks Low margin on securities pledged with banks Increase in liquidity of your securities because of faster transfer and registration of securities in your account Instant disbursement of non-cash benefits like bonus and rights into your account
Regular account status updates available from MODES at any point of time.
PORTFOLIO MANAGEMENT SERVICES

Managing investments in equities requires time, knowledge, experience and constant monitoring of stock market. Given the unpredictable nature of the equity market it requires solid experience and strong research to make the right decision in the right direction at the right time. That's where the expert comes in.
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Motilal Oswal Asset Management Company (MOAMC) is part of the Motilal Oswal Group and a 100% subsidiary of Motilal Oswal Securities Ltd. The Board of Directors of MOAMC comprises of eminent personalities with varied experience including Mr. Raamdeo Agarwal, who is the co-founder of the Group. Mr. Nitin Rakesh, CEO, has rich and varied experience of more than 15 years. His focus has been on investment management and operations and has worked in multiple areas including asset management, transaction processing, offshore fund structuring and venture capital.
The PMS business was under MOSL since inception in 2003 till October 2010, when the PMS business was moved to the AMC with the objective of consolidating all Assets Based and Investment Management Based businesses under one legal entity.
At Motilal Oswal Asset Management Company, we believe in creating superior investment products that revolve around sound investing principles and leverage on the engrained principles of Knowledge First and Innovation. Our endeavour is to constantly evolve and develop investment solutions that embrace our two core philosophies of being Focused & Disciplined.
We are one of the leading PMS Service Providers, with Assets under Management of Rs.13 billion (as on December 2010) with a customer base of 5,450 and a 4 member fund team managing funds across a number of strategies as given below. Our core principles are value based investing aimed at providing long term wealth creation for investors.
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BENEFITS
Professional Management:
The service offers professional management of your equity investments with an aim to deliver consistent return with an eye on risk.
Risk Control:
Well defined investment philosophy & strategy acts as a guiding principle in defining the investment universe. We have a very robust portfolio management software that enables the entire construction, monitoring and the risk management processes.
Convenience:
Our Portfolio Management Service relieves you from all the administrative hassles of your investments. We provide periodic reports on the performance and other aspects of your investments.
Constant Portfolio Tracking:

We understand the dynamics of equity as an asset class, so we track your investments continuously to maximize the returns.
Transparency:
You will get account statements and performance reports on a monthly basis. Thats not all; web access will enable you to track all information relating to your investment on daily basis. A password protected web login, will enable your to access details your investment on click of a button. The following portfolio reports are accessible online: Performance Statements Portfolio Holding Reports Transactions Statements Capital Gain/Loss Statements
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Dedicated Relationship Manager:
Your Relationship manager will help you carefully understand your financial goals and advise you the right product mix. The relationship managers, the one point contact will bestow personalized service and ensure that you receive periodic updates and account performance reports. Source: www.motilaloswal.com
WEALTH MANAGEMENT
Motilal Oswal Securities ltd added Life Insurance during April 2008 to our Wealth Management Portfolio thereby filling the gap in our basket of the products and thus providing comprehensive financial planning to our clients covering not all wealth creation solutions, but also wealth protection through proper risk management process. With complete emphasis on the solution providing, we approach our clients, not merely with insurance product per se, but with module (life profiler) to help our clients with objective based planning for life, identify and understand the various risk attached to his/her life and later advising you with appropriate customized solution. MOSL through our insurance partners offers insurance coverage and wealth creation opportunities to meet your different financial goals during the various stages of your life. The plans offer you the control to manage your protection and investment in one account. It is designed to remove your worries and making you secure in the knowledge that you and your loved ones are protected against any untoward events.
Life is about living it to the fullest. About reaching for a higher goal. At different stages of your life you have different goals; whether it is owning the home you've always dreamed of, giving your children the best or just having the financial freedom to enjoy your golden years.
Financial planning for individual, family and business wealth creation and management needs. These are provided to customers through our Wealth Management service called Purple.
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CHAPTER: 3 INTRODUCTION TO THE PROJECT
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Being a reputed company in the business it is of utmost importance for Motilal Oswal to be aware of what is going on in the market, what is expected of them and how are they performing and do they need any improvements. So, to cover all these areas a detailed analysis of all this aspects has been done. The project revolves around the whole financial market business. Through this project, an effort towards understanding and throwing more light on every aspect related to the business has been undertaken. It will surely help Motilal Oswal in getting a detailed insight into the business and developing marketing strategy in such a way that most can be reaped from the market of franchisee integration. Not only that, it was tried to give the business a new dimension in terms of approaching the sub-broker to generate leads which may in turn help in getting larger market share. The project had two market research parts Market survey of financial product. Awareness about the E-trading platform in financial market. Besides that the marketing strategies used by other companies in same business was studied and suggestions were drawn to develop an effective strategy. Besides these major issues many other issues were taken care of in this report.
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INDUSTRIAL INTERNSHIP PROGRAMME 2011 3.1 Objective of the project

To know the awareness in customers about E-Trading Platform and to find their investing pattern.
3.2 Limitations of the project
Although the project aims at making an in-depth market research but there are some practical limitations regarding the methodology followed & the overall procedure. These can be summed up under the following points -- Our survey was restricted only for the people of Satellite area. The sample taken for this research might not represent the whole population. Since the survey is conducted exclusively on personal view of the respondent may make lead to some biasness in the results. Some people do not want to give correct details required in the questionnaire. It is also possible that some people might have given false or misleading information. Many people doubted the fact that the information given by them would be kept strictly confidential. Many people gave unauthentic information to hide their ignorance.
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CHAPTER: 4 RESEARCH METHODOLOGY
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INDUSTRIAL INTERNSHIP PROGRAMME 2011 4.1 Methodology used for the project
This project followed a simple & systematic methodology.
Schedule of the Project:

The Timeline decided for the project: 25th April 28th April 29th April 30th April 30th April 1st May 2nd May 30th May 31 May 4 June 4th June 12th June 13th June
st th
: Introduction of Motilal Oswal by our company guide. : Questionnaire Designing : Location Details : Data collection : Tele calling : Final report preparation : Final report submission.
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CHAPTER: 5 DATA ANALYSIS
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INDUSTRIAL INTERNSHIP PROGRAMME 2011 Basic Table

Age group
Frequency Valid 21 to 25 26 to 30 31 to 35 36 to 40 > 40 Total 99 94 119 50 38 400
Percent 24.8 23.5 29.8 12.5 9.5 100.0
Valid Percent 24.8 23.5 29.8 12.5 9.5 100.0
Cumulative Percent 24.8 48.3 78.0 90.5 100.0
Annual Income
Frequency Valid < 100000 100000 to 300000 300000 to 500000 > 500000 Total 98 135 113 54 400
Percent 24.5 33.8 28.3 13.5 100.0
Valid Percent 24.5 33.8 28.3 13.5 100.0
Cumulative Percent 24.5 58.3 86.5 100.0
Occupation
Frequency Valid Student Business Services Other Total 59 97 243 1 400
Percent 14.8 24.3 60.8 .3 100.0
Valid Percent 14.8 24.3 60.8 .3 100.0
Cumulative Percent 14.8 39.0 99.8 100.0
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INDUSTRIAL INTERNSHIP PROGRAMME 2011 5.1 HYPOTHESIS

Ho: There is no significant relation between Age and the Investment pattern. H1: There is significant relation between Age and the Investment pattern.
Chi-Square Tests Value Pearson Chi-Square Likelihood Ratio N of Valid Cases 34.399
a
Df 4 4
Asymp. Sig. (2-sided) .000 .000
35.013 400
a. 0 cells (.0%) have expected count less than 5. The minimum expected count is 12.73.
Here we try to find the relation between Different age group respondents and their investment pattern. From the graph we can see, the younger age group prefer Online trading, as they are upgraded with new technologies and internet. In 26 to 30 and 31 to 35, Age group, only 30% of respondents prefer for online trading. No doubt this ratio will increase to more than 50% within 5 years, as technology has paved the growth path in India. Respondents above 40 age group they mainly do offline trading.

And in this null hypothesis is rejected.
5.2 Relation between Gender and Investment pattern?
Chi-Square Tests Asymp. Sig. (2Value Pearson Chi-Square Continuity Correctionb Likelihood Ratio Fisher's Exact Test N of Valid Cases 400 1.978
a
Exact Sig. (2sided)
Exact Sig. (1sided)
Df 1 1 1
sided) .160 .217 .149
1.522 2.084
.172
.107
a. 0 cells (.0%) have expected count less than 5. The minimum expected count is 14.07. b. Computed only for a 2x2 table
In our survey, we get only 42 females respondents and 358 males, 35% of total respondent of male prefer to do online trading and rest do offline trading. These results indicate that there is no significant relationship between the investment pattern and gender (chi-square with one degree of freedom, p = 1.978, Significant assumption= 0.160).
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INDUSTRIAL INTERNSHIP PROGRAMME 2011 5.3 Relation between Education and Investment Pattern?
Ho: There is no significant relation between Education and Investment pattern. H1: There is significant relation between Education and Investment pattern.
Chi-Square Tests Asymp. Sig. (2Value Pearson Chi-Square Likelihood Ratio Linear-by-Linear Association N of Valid Cases 6.787a 7.808 4.314 400 df 2 2 1 sided) .034 .020 .038
Here out of 400 respondents, which are categorized based on their education and their investment decision? In column of Undergraduate, only 4 people prefer online trading and 27 prefers offline trading. Same as in Graduates 68 prefers online trading and 133 prefers offline trading. Lastly in Post Graduates also 62 prefers online trading and 106 prefers offline trading. Overall we can say that only 133 people prefer online trading and 265 people prefers offline trading.
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In chi square tests we find that Ho is Rejected that is H1 is accepted and there is significant relationship between the variables (chi-square with 2 degrees of freedom, P= 6.787 and significant assumption = .034).
5.4 Occupation and Investment Pattern?

Ho: No significant relation between Occupation and Investment Pattern. H1: Significant relation between Occupation and Investment Pattern.
Chi-Square Tests Asymp. Sig. (2Value Pearson Chi-Square Likelihood Ratio Linear-by-Linear Association N of Valid Cases 23.965
a
df 3 3 1
sided) .000 .000 .000
22.920 16.547 400
a. 2 cells (25.0%) have expected count less than 5. The minimum expected count is .34.
Here from 400 respondents, Students which are of young age prefer to do online trading. While many our client falls in Business and Service class.
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No. of respondents Business Service 97 243 % of total respondents 8% 17.25% % of Each class respondents 30% 28.39%
The chi square table show that the Ho (null hypothesis) is rejected that is there is significant relation between Occupation and Investment patter.
5.5 Awareness of various Investment avenues based on Age group?

Age group * Awareness of Fixed Deposits
There is no doubt that respondents are fully aware about fixed deposits, irrespective of age group.
Age group * Awareness of PMS

Chi-Square Tests Asymp. Sig. (2Value Pearson Chi-Square Likelihood Ratio N of Valid Cases 9.822a 9.876 400 df 8 8 sided) .278 .274
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The respondents of younger age group are of combined opinion about their awareness level. Other than that all other groups are adequately aware about the PMS.
Age group * Awareness of Post
Age group * Awareness of Shares
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Age group * Awareness of IPO's
Age group * Awareness of PPF
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Age group * Awareness of Mutual Fund
Age group * Awareness of NSE
The above graphs of awareness levels of all age group are self explanatory. From the bird view point, we can say that the awareness level of investment avenues is satisfactory in survey of our respondents.
5.6 Frequency of Income group respondents?

Here there are people who are classified in different income groups are as follows: 24.5% respondents- less than 1,00,000 33.8% respondents- 1,00,000-3,00,000 28.3% respondents- 3,00,000-5,00,000 13.5% respondents- more than 5,00,000
5.7 Frequency of Influencing Factors?

Frequency of Influencing Factor Advisor:
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Influencing factor Advisor Cumulative Frequency Valid Not Selected Selected Total 326 74 400 Percent 81.5 18.5 100.0 Valid Percent 81.5 18.5 100.0 Percent 81.5 100.0
Here respondents are not so much influenced by advisors to invest; only 18.5% people are influenced and 81.5% are not influenced by them for the same.
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Frequency of Influencing Factor Television:
Influencing factor Television Cumulative Frequency Valid Not Selected Selected Total 286 114 400 Percent 71.5 28.5 100.0 Valid Percent 71.5 28.5 100.0 Percent 71.5 100.0
Here 28.5% respondents are influenced by television and 71.5% people are not influenced by the same.
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Frequency of Influencing Factor Word of Mouth:
Influencing factor word of mouth Cumulative Frequency Valid Not Selected Selected Total 345 55 400 Percent 86.3 13.8 100.0 Valid Percent 86.3 13.8 100.0 Percent 86.3 100.0
Here only 13.8% respondents are influenced by word of mouth and 86.3% are not influenced by the same.
Frequency of Influencing Factor Friends and family:
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Influencing factor Friends and Family Cumulative Frequency Valid Not Selected Selected Total 81 319 400 Percent 20.3 79.8 100.0 Valid Percent 20.3 79.8 100.0 Percent 20.3 100.0
Here 79.8%respondents are more influenced by the decision of friends and family, 20.3% are not influenced by the same.
Frequency of Influencing Factor Other Factors:
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any other influencing factor Cumulative Frequency Valid Not Selected Capital Mkt Magazine Own Total 366 1 33 400 Percent 91.5 .3 8.3 100.0 Valid Percent 91.5 .3 8.3 100.0 Percent 91.5 91.8 100.0
Here in others option 8.3%respondents do investment by their own knowledge and 3% respondents are influenced by Capital Market Magazine.
5.8 Ranks to Various Investment Avenues?

Ranks Mean Rank Rank of Fixed Deposit Rank of Portfolio Management Rank of Post Rank of Shares Rank of IPO Rank of NSE Rank of PPF Rank of Mutual Fund Rank of others 3.45 6.95 6.16 4.00 4.33 7.99 4.81 6.25 1.08
Page 125
Test Statisticsa N Chi-square Df Asymp. Sig. a. Friedman Test 400 1879.692 8 .000
Ranks Age group Rank of Fixed Deposit 21 to 25 26 to 30 31 to 35

dime ns ion 1
N 99 94 119 50 38 400 99 94 119 50 38 400 99 94 119 50 38 400 99 94 119 50
Mean Rank 167.16 228.95 229.50 176.40 157.89
36 to 40 > 40 Total
Rank of Protfolio Management
21 to 25 26 to 30 31 to 35
dime ns ion 1
204.01 196.42 202.76 214.91 175.41
36 to 40 > 40 Total
Rank of Post
21 to 25 26 to 30 31 to 35
dime ns ion 1
202.12 194.91 212.32 187.75 189.87
36 to 40 > 40 Total
Rank of Shares
dime ns ion 1
21 to 25 26 to 30 31 to 35 36 to 40
243.82 182.09 174.47 212.47
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> 40 Total Rank of IPO 21 to 25 26 to 30 31 to 35
dime ns ion 1
38 400 99 94 119 50 38 400 99 94 119 50 38 400 99 94 119 50 38 400 99 94 119 50 38 400 96 92 116 48 34 386
198.93
236.08 158.63 188.38 229.25 211.49
36 to 40 > 40 Total
Rank of NSE
21 to 25 26 to 30 31 to 35
dime ns ion 1
201.48 202.04 205.89 195.85 183.37
36 to 40 > 40 Total
Rank of PPF
21 to 25 26 to 30 31 to 35
dime ns ion 1
193.24 232.36 198.05 183.56 170.59
36 to 40 > 40 Total
Rank of Mutual Fund
21 to 25 26 to 30 31 to 35
dime ns ion 1
164.10 237.02 206.73 215.75 165.43
36 to 40 > 40 Total
Rank of others
21 to 25 26 to 30 31 to 35
dime ns ion 1
194.51 192.50 192.50 192.50 198.18
36 to 40 > 40 Total
Test Statisticsa,b
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Rank of Fixed Deposit Chi-square Df Asymp. Sig. a. Kruskal Wallis Test b. Grouping Variable: Age group 32.778 4 .000 Rank of Protfolio Management 3.003 4 .557 Rank of Post 2.506 4 .644 Rank of Shares 23.875 4 .000 Rank of IPO 27.144 4 .000 Rank of NSE 1.516 4 .824 Rank of PPF 11.813 4 .019 Rank of Mutual Fund 24.684 4 .000 Rank of others 5.702 4 .223
Here there is an assumption Lower the mean rank means higher rank is given by the respondent to that product. The overall Preferences for the product as per the rank given by respondents are as below: Ranks 1 2 3 4 5 6 7 8 Products Fixed Deposits Shares IPOs PPF Post Mutual Funds PMs NSE
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A product which has given higher rank by different age group is as follows:
Respondents of above 40 age ranked Fixed Deposits as their most reliable investment avenue. PMS is also highly ranked by the same age group as they have earned throughout their life and have enough money to make investment in PMS. Post is ranked by 30-40 age groups. Shares which are highly volatile are most ranked by 31-35 age groups. IPO another volatile investment avenue is ranked by 26-30 age groups. NSC & PPF is ranked by above 40 age group. Mutual Fund, as said many investors come together with a small amount to invest, is ranked by younger age group i.e. 21-25.
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CHAPTER: 6 RECOMMENDATIONS
Page 130
INDUSTRIAL INTERNSHIP PROGRAMME 2011 6.1 RECOMMENDATIONS
Our most of respondents falls in age group range from 21-35 i.e. 78% of total respondents. The respondents of 26-35 age groups are most active in trading and investment, but they mostly prefer to do offline trading as they are less familiar with the latest technology.
On the other hand age group of 21-25 do prefer more online trading as they are fully familiar with the technology. While respondent above 40 are inactive with technology.
Here Motilal Oswal should focus on 21-35 age groups also it should provide aid to 26-35 age groups to go through online training.
In present days people prefer self investment decision but days are not far that demand of Wealth advisor will arise. Therefore, to grab upcoming market Motilal Oswal should make regular advertisements of advisory counseling which will help them in future and also they should focus on branding.
Looking to all above, we can say that, the Shares, IPOs and Mutual Funds are upcoming investment avenue and ready to grab the financial market. To make easy trading through online aid or training is to be provided to clients and online trading procedure should make easy to operate.
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6.2Training
Motilal Oswal Financial Services Ltd. (MOFSL) is a well-diversified, financial services company focused on wealth creation for all its customers, such as institutional and corporate clients, HNI and retail customers. Our services and product offerings include equity broking, commodity broking, and distribution of third party products, investment banking and venture capital management.
As internet facility is gauging its space in each and every field. Why the Share trading get behind? Now days, almost all share trading firms have entered into Online Trading of Shares. Online facility of share trading is new beginning which is to be learned and trained to clients. We were assigned the work of Market Survey and we had to provide information of products and facility provided by MO, we were given the training of Online Terminal. There are two types of trading takes place (1) Offline trading and (2) Online Trading. Offline Trading is also called as Call and Trade. While online trading is done by clients from their personal terminal. Online Terminal It is also known as LITE. Further it is divided into 2 types: (i) (ii) Desktop Mobile
Desktop - Online terminal: Terminal which operates in computer and client can trade through its computer with its login ID. It works best on high speed internet connections. And it is best suitable for investors and traders who want live market watch and faster execution.
Mobile Online Terminal: We get online information of shares price and trading facility on mobile phone with assess of internet facility. It is useful for people who do not want to sit on computer. But the drawback is it has lower speed as compare to desktop speed.
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ANNEXURE 1
Page 133

QUESTIONNAIRE
(We are interns of Motilal Oswal, doing survey to know the market penetration level about ETrading.) 1. Name: ________________________________________.
Gender:
Male
Female
E-mail ID: ___________________________________. Contact No: ______________________. Age: Occupation: 21 to 25 Student 26 to 30 31 to 35 Business Service 36 to 40 above 40
Others please
specify__________________. Education: Annual Income: Less than 1,00,000 3,00,000 to 5,00,000 1,00,000 to 3,00,000 Above 5,00,000 Under Graduate Graduate Post Graduate
2. How much percent do you save from your annual income? Less than 5% 5% to 10% 10% to 15% Above 15%
3. How much percent of return do you expect from your investment? Below 8% 8% to 12% 12% to 15% Above 15%
4. Rank to various avenues of investment? (1 highest & 8 -lowest ) Fixed deposits Shares PPF Portfolio Management Services (PMS) IPOs Mutual Funds Post NSC Others please specify__________________.
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5. How much are you aware about following avenues of investment? (Tick mark in following column)
Investment Avenues Fixed deposits Portfolio Management Services (PMS) Post Shares IPOs PPF Mutual Funds NSC
Low
Medium
High
6. Who influences your investment decision? Advisors Friends & Family Television Word of Mouth
Others please specify _______________________.
7. Which mode of transaction do you prefer? Online Offline
8. Would you like to have Wealth Advisor Services? Yes No
Page 135
INDUSTRIAL INTERNSHIP PROGRAMME 2011 BIBLIOGRAPHY

Books
Market Research by Naresh Malhotra and Satyabhusan Dash. Business Research Methodology by William Zikmund . The Indian Financial System by Bharti V Pathak Financial Management by Prasanna Chandra
Websites
www.wikipedia.com www.nseindia.com www.sebi.org www.motilaloswal.com www.moneycontrol.com www.valuenotes.com www.bseindia.com
Besides this, data was also collected from the literature survey of the companys Documents and by the way of Discussions.
Page 136

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INDUSTRIAL INTERNSHIP PROGRAMME 2011

Project Report On Gauging the potential of Financial Services in Emerging Economies

Stevens Business School (2010-12)

INDUSTRIAL INTERNSHIP PROGRAMME 2011 DECLARATION BY STUDENT

Stevens Business School (2010-12)

INDUSTRIAL INTERNSHIP PROGRAMME 2011 ACKNOWLEDGEMENT

Stevens Business School (2010-12)

INDUSTRIAL INTERNSHIP PROGRAMME 2011

Stevens Business School (2010-12)

INDUSTRIAL INTERNSHIP PROGRAMME 2011

Stevens Business School (2010-12)

INDUSTRIAL INTERNSHIP PROGRAMME 2011

Stevens Business School (2010-12)

INDUSTRIAL INTERNSHIP PROGRAMME 2011

Stevens Business School (2010-12)

INDUSTRIAL INTERNSHIP PROGRAMME 2011 TABLE OF CONTENT

Stevens Business School (2010-12)

INDUSTRIAL INTERNSHIP PROGRAMME 2011

Stevens Business School (2010-12)

INDUSTRIAL INTERNSHIP PROGRAMME 2011

Stevens Business School (2010-12)

INDUSTRIAL INTERNSHIP PROGRAMME 2011

CHAPTER 1: INTRODUCTION TO INDIAN FINANCIAL SYSTEM

Stevens Business School (2010-12)

INDUSTRIAL INTERNSHIP PROGRAMME 2011 1.1 INTRODUCTION

1.2 THE FINANCIAL SYSTEM: AN INTRODUCTION

and The Financial

Individuals Businesses Governments

Money Market Capital Market

Book of Financial Management by Prasanna Chandra

Stevens Business School (2010-12)

INDUSTRIAL INTERNSHIP PROGRAMME 2011

1.2.1 FORMAL AND INFORMAL FINANCIAL SECTORS

1.2.2 THE INDIAN FINACIAL SYSTEM

Stevens Business School (2010-12)

INDUSTRIAL INTERNSHIP PROGRAMME 2011

Fig. 2 Classification of financial markets: Nature of claim

Stevens Business School (2010-12)

INDUSTRIAL INTERNSHIP PROGRAMME 2011

DISTINCT FEATURES OF FINANCIAL INSTRUMENTS

INDUSTRIAL INTERNSHIP PROGRAMME 2011

Stevens Business School (2010-12)

INDUSTRIAL INTERNSHIP PROGRAMME 2011

Stevens Business School (2010-12)

INDUSTRIAL INTERNSHIP PROGRAMME 2011 1.4 INDUSTRY OVERVIEW

1.4.2 GROWTH OF BANKING SECTOR IN INDIA

Stevens Business School (2010-12)

INDUSTRIAL INTERNSHIP PROGRAMME 2011

cater to the various investors in different locations.

1.4.4 GROWTH IN THE INSURANCE SECTOR IN INDIA

1.4.5 GROWTH OF VENTURE SECTOR IN INDIA

Stevens Business School (2010-12)

INDUSTRIAL INTERNSHIP PROGRAMME 2011

Stevens Business School (2010-12)

INDUSTRIAL INTERNSHIP PROGRAMME 2011

CHAPTER 2: INTRODUCTION OF COMPANY

Stevens Business School (2010-12)

INDUSTRIAL INTERNSHIP PROGRAMME 2011 2.1 HISTORY

Stevens Business School (2010-12)

INDUSTRIAL INTERNSHIP PROGRAMME 2011

2.1.1 Focus on Research

INDUSTRIAL INTERNSHIP PROGRAMME 2011