A Project Report

On

TOPIC
In partial fulfilment of the requirements of Summer Internship Programme in the Masters in Business Administration programme of Gujarat Technological University

Submitted to Prof Gurmeetsing Sikh

On Date

By Kunal G. Maheria 107350592081 Batch 2010-12

N R INSTITUTE OF BUSINESS MANAGEMENT

Kunal Maheria

NRIBM

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N. R. Institute of Business Management (GLS-MBA)

Certificate
This is to certify that Mr Kunal Maheria EnrolmentNo. 107350592081, student of N. R. Institute of Business Management (GLS-MBA) has successfully completed his Summer Project on Topic at Company Name in partial fulfillment of the requirements of MBA programme of Gujarat Technological University. This is his original work and has not been submitted elsewhere.

_______________ Dr. Hitesh Ruparel Director

____________________

Prof. Gurmeetsing Sikh

Date: _________________

Place: _________________

Kunal Maheria

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Declaration

I, Kunal Maheria, Enrolment No. 107350592081 student of N R Institute of Business Management hereby declare that I have successfully completed this project on Topic in the academic year 2010-2011.

I declare that this submitted work is done by me and to the best of my knowledge; no such work has been submitted by any other person for the award of degree or diploma. I also declare that all the information collected from various secondary and primary sources has been duly acknowledged in this project report.

Kunal Maheria
107350592081

Kunal Maheria

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PREFACE
In order to achieve Perfection, theoretical knowledge must be supplemented with practical knowledge and training. The basic objective of the summer internship is to bridge between theoretical knowledge and practical knowledge. I know that training is for the development and enhancement of the knowledge in a particular field. It can never be possible to make a mark in todays competitive era only with theoretical knowledge when industries are developing at global level, practical knowledge of administration and management of business is very important. Hence, practical study is of great importance to M.B.A. student. With a view to expand the boundaries of thinking, I have undergone summer internship training program at MOTILAL OSWAL SECURITIES LTD. I have made deliberate efforts to collect the required information and fulfill training objective. I consider my selves very fortunate that I got an opportunity to work with an esteemed company like MOTILAL OSWAL SECURITIES LTD.

Place: AHMEDABAD Date:

KUNAL MAHERIA ROLL NONR10047

Kunal Maheria

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ACKNOWLEDGMENT
Guidance, cooperation, and inspiration are the important factors in the accomplishment of an assigned task. I am most indebted to those mentioned below for their moral and active support. At the outset, I profoundly thank to our college NRIBM for providing us with this opportunity and for all its cooperation and contribution. I also express my gratitude to our honorable Head of the Department Dr. HITESH RUPAREL, and are highly thankful to my project guides Prof. GURMEET SING SIKH, and all others professors who helped me with the project. I am also thankful to other college staff that helped in my project. I am very thankful to Mr. JAY PRAKASH SIR (B.M. MOTILAL OSWAL SECURITIES LTD.) who has given me such a nice opportunity to undergo the training and for giving me his valuable suggestions and guidance throughout the training period and would also like to thank the whole MOTILAL OSWAL staff for helping me in queries. Finally, I am sincerely thankful to others who have directly or indirectly helped me in the completion of the project.

Place: AHMEDABAD Date:

KUNAL MAHERIA ROLL NO NR10047

Kunal Maheria

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EXECUTIVE SUMMARY
As a part of our study, I did my project in Motilal Oswal Security Ltd.. Basically, MOSL is in the broking industry providing a varied products and services to their clients. MOSL is one of the leading broking firms at National level. In my summer internship I was given the project work on Analyzing the market potential for Franchisee Acquisition- wherein I found the possibilities for MOSLs business expansion via Franchisee in Ahmedabad city. For which I have done my practical study on sub-brokers survey in Ahmedabad city. During my internship at MOSL, I also engaged my selves in the work of searching for franchisee prospect. I found out address of various franchisees from NSE sub-brokers list and from the lead given by the visited sub-brokers themselves. After finding out the address of franchisee, my starting point of research was visit them and took detailed information from them. I survey 150 sub-brokers and questioned them relating to the products & services provided by their brokers, departments with their present brokers, business development supports provided and required by them for their business development and other personal information. I also visited some of the leading regional brokers to make my selves more aware of the market scenario. I also discussed this with our research guides (the assistant branch manager and Business acquisition manager) and with also other staff of the branch. From the data collected through questionnaire, I have found out the various marketing strategies, possibilities that MOSL can use for acquiring business in the future; in the other uncovered regions of Ahmedabad. I have found that MOSL is enjoying good reported place in the market through its varied products and services, various department desk, its unique business models.

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Table of Content

Sr. No. I II III IV V

Particulars Certificate Declaration Preface Acknowledgement Executive Summary

Page. No.

1 2 3 4 5 6

Introduction Research methodology Industry profile Company profile Theoretical aspect of the study Data Analysis and Interpretation 6.1 No. of years in broking industry 6.2 Product and services

09 12 17 26 54 62 63 64 65 67 68 69 70 71 72 73 74 76 77
7

Chapters

6.3 Facilities 6.4 Sources 6.5 Qualities for successful broker 6.6 Factors for satisfied clients 6.7 Immediate challenges 6.8 Development criteria 6.9 Business development support 6.10 6.11 6.12 6.13
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Require support from broker Criteria while selecting a broker Analysis provided by broker Changing about sub-brokership in the past
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6.14 Initial investment 6.15 Level of satisfaction

78 79 82 84 86 87

7 8
VI VII

Research findings and Conclusions Recommendation & Suggestions Bibliography Annexure

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CHAPTER:- 1

INTRODUCTION

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INTRODUCTION

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 Motilal Oswal has 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. It has a diversified client base that includes retail customers (including High Net worth Individuals), mutual funds, foreign institutional investors, financial institutions and corporate clients. We are headquartered 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 MOSL is one of the best companies among Indian domestic broking houses enjoying an unmatched and unparalleled brand recall. Motilal Oswal Securities Ltd. Is financially sound and have an excellent track record of consistent market growth in all key business segments. Company is committed to give their customers the best services and holding to their core values which always place their client's interests first. These values are reflected in their business principles, which emphasize integrity, commitment to excellence, innovation and teamwork MOSL provide the solid research to their clients. As a part of project concern we are studying the business models and for the growth of business which is the tools being used and required by the sub-brokers.
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So, this project aspires to know the competent market leaders, behavior of the individual client. This also helps us to know the preferences of the Sub-brokers to choose the main brokers so that they can provide good services according to the sub-brokers requirements to make more and more sub-brokers, individual client and other HNI clients

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CHAPTER:- 2

RESEARCH METHODOLOGY

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2. RESEARCH METHODOLOGY

2.1 Research Objective:-

To study the preferences of sub-brokers in Ahmedabad city, regarding wide range

of the products, services and support tools.

To understand whether sub-brokers are satisfied with the business developments

and supports being provided to them by their present main brokers in Ahmedabad.

To understand the gap between sub-brokers expectations & main brokers

perceptions.

2.2 Scope and Benefit of the study:

This will help the company, how to make sub-brokers aware about products and services which are available in the market.

This will also help MOSL to select right tools for approaching the prospects, to give knowledge of the products & services and other business development supports.

This will also help MOSL to make out the brand awareness at regional level. This will also help MOSL to reframe the policies as per requirements of the regional sub-brokers.

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 2.3 LETERATURE REVIEW:PARAS MOTANI (2010) finds that even though the business models have its own pros & cons, Franchisee business model (scoring 756 out of 1000) is considered more preferable than remisers (scoring 756 out of 1000).

2.4 Methods of Data Collection:

1.

Data collection sources: Primary: Primary data is collected by visiting various persons who are connected with broking industry through surveys/questionnaires, interviews. Secondary: Company material, websites, research reports.

2.

Method of Sampling: Convenient Sampling: Because of limited time and money, we have selected convenient sampling method. But, we have not found much difference in findings gained from different areas. So it shows enough validity of the research.

3.

Sampling Plan: Sample size : 150

Sampling method: Random sampling (survey of sub-brokers in different regions of Ahmedabad.) Research Instruments : Questionnaire (attached in Annexure) Geographical Scope: Ahmedabad city

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 2.5 HYPOTHESIS:-

(1)

Ho: There is significant relation between CLIENT BASE and NO. OF YEARS IN THIS BUSINESS. H1: There is no significant relation between CLIENT BASE and NO. OF YEARS IN THIS BUSINESS.

(2)

Ho: There is significant relation between PRODUCT & SERVICES and NO. OF YEARS IN THIS BUSINESS. H1: There is no significant relation between PRODUCT AND SERVICES and NO. OF YEARS IN THIS BUSINESS.

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 2.4 LIMITATIONS OF THE STUDY:-

We have considered only the population of Ahmedabad city while selecting our sample size because of time & financial restrictions.

As broking industry is a very huge industry, we have considered only few issues in our study report.

The other limitations to the study are: 1. 2. 3. Personal bias Sample size Lack of expertise

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CHAPTER:3

INDUSTRY PROFILE

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3. Industry Profile:-

3.1 Introduction:-

The Indian financial services industry has experienced significant growth in the last few years. The Indian financial markets have considerably broadened and deepened due to various financial market reforms undertaken by the regulators. Introduction of innovative and diverse financial instruments and entry of large domestic players and sophisticated international players have triggered this growth.

None banking financial services sector, such as equities, derivatives and commodities brokerage, residential mortgage and insurance services, where new innovative products and expanding delivery channels have helped these sectors achieve high growth rates. Retail segment has grown multi-fold due to Regulatory reforms, diverse asset instruments, changing demographic profile, soft real interest rates and enhanced foreign participation (FIIs).

Finance and investment industry is playing a vital role for the development of the economy.

Financial market in India is one of the oldest in the world and is considered to be the fastest growing and best among all the markets of the emerging economies. The history of Indian capital markets dates back 200 years toward the end of the 18th century when India was under the rule of the East India Company. The development of the capital market in India concentrated around Mumbai where no less than 200 to 250 securities brokers were active during the second half of the 19th century.
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The financial market in India today is more developed than many other sectors because it was organized long before with the securities exchanges of Mumbai, Ahmedabad and Kolkata were established as early as the 19th century. By the early 1960s the total number of securities exchanges in India rose to eight, including Mumbai, Ahmedabad and Kolkata apart from Madras, Kanpur, Delhi, Bangalore and Pune. Today there are 21 regional securities exchanges in India in addition to the centralized NSE (National Stock Exchange) and OTCEI (Over the Counter Exchange of India).

The international financial market over the world has grown very fast in the recent years. The private capital market is consistently improving since 1997. The buoyant capital flows among the nation's boundaries have raised the existing strength of the financial market domestically as well as internationally.

3.2 Trading Pattern of the Indian Stock Market

Trading in Indian stock exchanges is limited to listed securities of public limited companies. They are broadly divided into two categories, namely, specified securities (forward list) and non-specified securities (cash list). Equity shares of dividend paying, growth-oriented companies with a paid-up capital of at least Rs.50 million and a market capitalization of at least Rs.100 million and having more than 20,000 shareholders are, normally, put in the specified group and the balance in non-specified group. Two types of transactions can be carried out on the Indian stock exchanges: (a) spot delivery transactions "for delivery and payment within the time or on the date stipulated when entering into the contract which shall not be more than 14 days following the date of the contract": and (b) Forward transactions "delivery and payment can be extended by further period of
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14 days each so that the overall period does not exceed 90 days from the date of the contract". The latter is permitted only in the case of specified shares. The brokers who carry over the outstanding pay carry over charges (can tango or backwardation) which are usually determined by the rates of interest prevailing. A member broker in an Indian stock exchange can act as an agent, buy and sell securities for his clients on a commission basis and also can act as a trader or dealer as a principal, buy and sell securities on his own account and risk, in contrast with the practice prevailing on New York and London Stock Exchanges, where a member can act as a jobber or a broker only. The nature of trading on Indian Stock Exchanges are that of age old conventional style of face-to-face trading with bids and offers being made by open outcry. However, there is a great amount of effort to modernize the Indian stock exchanges in the very recent times.

Over The Counter Exchange of India (OTCEI)

The traditional trading mechanism prevailed in the Indian stock markets gave way to many functional inefficiencies, such as, absence of liquidity, lack of transparency, unduly long settlement periods and benami transactions, which affected the small investors to a great extent. To provide improved services to investors, the country's first ring less, scrip less, electronic stock exchange - OTCEI - was created in 1992 by country's premier financial institutions - Unit Trust of India, Industrial Credit and Investment Corporation of India, Industrial Development Bank of India, SBI Capital Markets, Industrial Finance Corporation of India, General Insurance Corporation and its subsidiaries and CanBank Financial Services. Trading at OTCEI is done over the centers spread across the country. Securities traded on the OTCEI are classified into: Listed Securities, Permitted Securities, Initiated debentures. OTC has a unique feature of trading compared to other traditional exchanges. That is, certificates of listed securities and initiated debentures are not traded at OTC. The original certificate will be safely with the custodian. But, a counter receipt is generated out at the counter which substitutes the share certificate and is used for all transactions.
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 3.4 National Stock Exchange (NSE)

With the liberalization of the Indian economy, it was found inevitable to lift the Indian stock market trading system on par with the international standards. On the basis of the recommendations of high powered Pherwani Committee, the National Stock Exchange was incorporated in 1992 by Industrial Development Bank of India, Industrial Credit and Investment Corporation of India, Industrial Finance Corporation of India, all Insurance Corporations, selected commercial banks and others. Trading at NSE can be classified under two broad categories: 1) 2) Wholesale debt market Capital market.

Wholesale debt market operations are similar to money market operations - institutions and corporate bodies enter into high value transactions in financial instruments such as government securities, treasury bills, public sector unit bonds, commercial paper, certificate of deposit, etc. There are two kinds of players in NSE: 1) 2) Trading members and Participants.

Recognized members of NSE are called trading members who trade on behalf of themselves and their clients. Participants include trading members and large players like banks who take direct settlement responsibility. Trading at NSE takes place through a fully automated screen-based trading mechanism which adopts the principle of an order-driven market. Trading members can stay at their offices and execute the trading, since they are linked through a communication network. The prices at which the buyer and seller are willing to transact will appear on the screen. When the prices match the transaction will be completed and a confirmation slip will be printed at the office of the trading member.
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 3.5 Basically, Share Market can be divided into two parts :-

Primary Market It is the market where new issues of securities are offered to the investors. Secondary Market An investor of a secondary market buys a security from another

participant of the same and not from any issuing corporation (as in case of Primary Market) Difference between Primary and Secondary Markets In the primary market securities are issued to the public and the proceeds go to the issuing company. Secondary market is a term used for stock exchanges, where stocks are bought and sold after they are issued to the public.

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Primary market
Individuals apply to get shares of the company Company IPO Companies share ownership by issuing shares

Company

Owners

Companies allocate shares to individuals and those who get the shares become part owners of the company.

Secondary Market

Company

Stock Exchange

Broker
Individual Investors
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Companies get themselves listed on popular stock exchanges like BSE and NSE

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Multi Channel Access to the Stock Market

Relationship Manager Call centre

Live chat

SMS

Website

CUSTOMER SUPPORT

Email

Multi Channel Investment Option

Share Shops
Online Trading

Dial n Trade

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 3.6 Major Players in the broking Industry

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CHAPTER:- 4

COMPANY PROFILE

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4. Company Profile 4.1 Introduction:The story of Motilal Oswal Securities Ltd (MOSL) goes back many years, when Mr. Motilal Oswal and Mr. Raamdeo Agrawal met each other as students in a Mumbai suburban hostel in the early eighties. Both the young chartered accountants hailing from a rural & an unpretentious background had a common dream viz 'to build a professional organization with strong value systems, to provide reliable & honest investment advice to investors'. Thus was born their first enterprise called "Prudential Portfolio Services" in 1987. Motilal Oswal Securities Ltd. 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 almost 1600 member team. Today MOSL is 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. MOSL have a diversified client base that includes retail customers (including High Net worth Individuals), mutual funds , foreign institutional investors, financial institutions and corporate clients. MOSLs headquartered in Mumbai and as of March 31st, 2010, 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, 2010, we had 709,041 registered customers.
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Motilal Oswal Financial Services is a well-diversified financial services group having businesses in securities, commodities, investment banking and capital venture With over 1,644 business locations and more than 709,041 customers in over 611 cities, Motilal Oswal is well suited to handle all your wealth creation and wealth management needs. These solutions are provided by a force of over 1600 employees and over 808 Business Associates.

4.2 Motilal Oswal financial services ltd consist of four companies:Motilal Oswal Investment Advisors Pvt. Ltd. is our Investment Banking arm with collective experience of over 100 years in investment banking/corporate banking and advisory services Motilal Oswal Commodities Broker (P) Ltd. has been providing commodity trading facilities and related products and services since 2004. Motilal Oswal Venture Capital Advisors Private Limited has launched the India Business Excellence Fund (IBEF); a US$100 mn India focused Private Equity Fund. Motilal Oswal Securities Ltd. (MOSt ) is a leading research and advisory based stock broking house of India, with a dominant position in both institutional equities and wealth management. Our services include equities, derivatives, e-broking, portfolio management, mutual funds, commodities, IPOs and depository services.

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 4.3 Organizational Structure:-

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 4.4 CORE PURPOSE :To be a well-respected and preferred global financial services organization enabling wealth creation for all our customers.

4.5 VALUES:Integrity: - A company is honoring commitment with highest ethical and business practices. Teamwork: - Attaining goals collectively and collaboratively. Meritocracy: - Performance gets differentiated, recognized and rewarded in an a political Passion & Attitude: - High energy and self-motivated with a Do It attitude and entrepreneurial spirit Excellence in Execution: - Time bound results within the framework of the companys value system

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 4.6 Management Team:-

Motilal Oswal

Chairman and Managing Director, MOFSL

Mr. Motilal Oswal is the Chairman and Managing Director of Motilal Oswal Financial Services Ltd. (MOFSL). He is a Chartered Accountant and started the business along with co-promoter, Mr. Raamdeo Agrawal in 1987. Mr. Oswal has received the Rashtriya Samman Patra awarded by the Government of India for being amongst the highest income tax payers in the country for a period of 5 years from FY95FY99. Mr. Oswal has served on the governing board of the Bombay Stock Exchange (BSE) as well as IMC and also has served on many committees of BSE, NSE, SEBI and CDSL. He is also a board member and a Director of Jain International Trade Organisation (JITO). The Indian Council of Management Executives (ICME) has awarded the Knight of the Millennium to Mr. Oswal for the Capital Market. Recently, Mr. Oswal was conferred the Udyog Rattan Award for his outstanding performance in the industrial development of the country by the Institute of Economic Studies, New Delhi. He has also been inducted into The Hall of Fame for excellence in
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Franchising by the Franchising World Magazine. He is also awarded as the Champion of Arthshastra by the Rotary District and the Excellent Business Achiever in Financial Services Award by the Institute of Chartered Accountants of India. Motilal Oswal Financial Services group activities include Wealth Management, Investment Banking, Institutional Broking, Private Equity and Asset Management with operations in 1644 outlets in over 611 cities and more than 709,041 customers. The company's employees strength is about 1500 people including 600 MBAs, Engineers and Chartered Accountants etc. In the year 2006 and 2007, Asia Money Brokers Poll has rated Motilal Oswal Securities as the country's Best Local Research Company. It was also ranked as the Best Brokerage in the ET Now Starmine Analysts Awards 2009 and among the top 2 Local Brokerages in the AsiaMoney and Institutional Investor Brokerage polls. In the year 2008, NASCOM CNBC TV18 rated Motilal Oswal as the Best IT User Award for the Financial Services Category. Franchisee World Magazine the most coveted award in the retail and franchising industry rated Motilal Oswal as The Best Franchisee in Financial Services for the second year in succession. The company has been discussed in Harvard Business School USA, the world's best Biz School as a case study based for its growth and sound business practices. MOFSL is a listed company with a Market Capitalization of about Rs. 2400 Crores.

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Raamdeo Agrawal

Joint Director,

Managing MOFSL

Raamdeo Agrawal Mr. Raamdeo Agrawal is the man behind the strong research capabilities at Motilal Oswal Financial Services Ltd. He is an Associate of Institute of Chartered Accountants of India and also a member of the National Committee on Capital Markets of the Confederation of Indian Industry.

Mr. Agrawal specialises in equity research. He has been authoring the annual Motilal Oswal Wealth Creation Study since its inception in 1996. In 1986, he wrote the book Corporate Numbers Game, along with co-author, Mr. Ram K Piparia. He has also featured on 'Wizards of Dalal Street on CNBC TV 18'.

Mr. Agrawal has received the "Rashtriya Samman Patra" awarded by the Government of India for being amongst the highest Income Tax payers in the country for a period of 5 years from FY95FY99.

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Navin Agarwal Director, MOFSL

Ashutosh Maheshvari CEO, MOIAPL

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 4.7 TRADING DEPARTMENT

Motilal Oswal is one of the broker who is acting as wholesalers and as a broker, it is the duty of it to provide service of collecting funds and securities from the investors and send it to clearing house and vice versa. According to SEBI investor has to open trading account for trading in shares. Client can open an account in any depository. Trading department is divided into three parts: Pre-trading (A/c opening, Deposits, etc) Trading (Dealing room, Sauda punching, conformation) Post-trading (Payout process, Bills, Pay-in-process, Contract note)

4.8 HUMAN RESOURCE DEPARTMENT

MOFSL has grown at a scorching pace, not only in terms of business but also in terms of its most valuable asset -people. They have an ever-growing employee strength of 2315 associates that operates out of a rapidly expanding Company network. HR at Motilal Oswal, on the one hand strives to make every employee of the organization its brand ambassador and on the other hand make the Motilal Oswal brand stand for the best people practices. The 3 pillars of HR strategy are: (1) A clear and relentless (persistent) focus on leadership development (2) Stringent (severe) focus on the identification and development of 'High Potentials' at all levels (3) Investment in technology to deliver state-of-the-art HR processes across the organization in a time and cost efficient manner.
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The key initiatives towards implementation of the strategy have been: Balanced Scorecard and KRA implementation: Leadership Development: Style and competency assessment for the top tier management of the Company was carried out and an intensive Executive Coaching programme based on Individual Development Plans has been started for 13 of the top leaders of the organization. Technology: The recruitment process has been enabled and implemented using the existing HR software of My Zone. This has been implemented in Mumbai during the current year and will be rolled out across all regions during this year.

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 4.9 Awards and Accolades :

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 4.10 Services offering by MOSL:

International & local

International capital market etc, SYNDICATION FCCBs & GDRs

Acquisition finance arrangement, LBO

STRUCTURED FINANCE

M&A ADVISORY

DOMESTIC IPOs

PRIVATE EQUITY PLACEMENT CORPORATE FINANCE ADVISORY International & domestic

RESTRUCTURING

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 4.11 Product and services:-

1. Wealth Management and Broking & Distribution :

We offer Wealth Management Services, Broking & third party products to retail customers through MOFSL, MOSL and MOCBPL. We also provide financing services, investment advisory, financial planning and portfolio management services (PMS) to our clients. As at June 30, 2009, we had 5, 57,373 registered customers, to whom we provide equity & commodities brokerage and PMS.

As at June 30, 2010, MOFSL had a total of 4, 86,571 depository clients. We classify our clients into two segments - 'mass retail' and 'high net worth' (addressed by a separate offering called 'Purple'). We offer our clients investment products across the major asset classes including equities, derivatives, and commodities and distribute third-party products such as mutual fund schemes and primary equity offerings. We distribute these products through our business locations and our online channel.
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2. Institutional Broking

We offer equity broking services in the cash and derivative segments through MOSL to institutional clients in India and overseas.

These clients include companies, mutual funds, banks, financial institutions, insurance companies, and FIIs. As at June 30, 2009, we were empanelled with over 300 institutional clients including 200 FIIs.

We service these clients through dedicated sales teams across different time zones.

3. Investment Banking

We offer financial advisory services relating to mergers and acquisitions (domestic and cross-border), divestitures, restructurings and spin-offs through MOIAPL.

We also offer capital raising and other investment banking services such as the management of public offerings, private placements (including qualified institutional placements), rights issues, share buybacks, open offers/delisting and syndication of debt and equity.

MOIAPL has closed 48 transactions in 2008-09.

4. Private Equity

In 2006, our private equity subsidiary, MOPEAPL was appointed as the investment manager and advisor to a private equity fund, India Business Excellence Fund, which was launched with a target of raising US$100 million. The fund is aimed at providing growth capital to small and medium enterprises in India, with investments typically in the range of US$3 million to US$7 million. In its final closing, in December 2007, the fund obtained commitments of US$125 million (Rs.4, 875 million) from investors in India and overseas. US$31 million of these funds have already been deployed across six deals and the fund is in advanced stages of closing three more deals, aggregating to US$30 million.
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MOFSL is sponsoring India Reality Excellence Fund (IREF), an INR 750 cror es Private Equity Real Estate Fund. MOPEAPL will be the investment manager and advisor to the fund.

5. Asset Management

Our Portfolio Management Services (PMS) are offered through MOSL. As on 30th June, 2009, assets under management for this business were Rs. 6.8 bn. For the PMS business, we have a 5 member fund management team; they are supported by MOSL Research Team of 27research analysts.

We have received an in-principle approval from Securities Exchange Board of India (SEBI) to set up a mutual fund business in India, through our promoter company, Passionate Investment Management Private Ltd.

We feel that there is a huge opportunity for new entrants as the industry is still in its nascent stage in terms of AUM size, number of players and number of schemes, when analyzing and comparing it with countries like Brazil and other emerging economies. We will grow our asset management business by leveraging our existing investment management capabilities in managing funds, our strong research and a large in-house retail franchisee network to spread our reach and capture the investment potential in India and abroad.

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6. Broking & Distribution services Equity (cash and derivatives) Commodity Broking Portfolio Management Services Distribution of financial products Financing Depository Services IPO distribution

We offer these services through our branches, Business Partner locations, the internet and mobile channels. We also have strategic tie-ups with State Bank of India and IDBI Bank to offer our online trading platform to its customers.

Commodity Broking

Through Motilal Oswal Commodities Broker (P) Ltd our fully owned subsidiary; we provide 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. We offer these services through our branches, Business Partner locations, the internet and mobile channels. Mutual Fund At Motilal Oswal Securities Ltd, they understand the importance of financial goals of their privileged clients and provide them comprehensive solutions to all your financial needs. Through their tailor made portfolios, they serve clients needs better and help them and make informed investment decisions. Their dedicated Mutual fund desk gives clients Solid advice backed services thus giving them the edge that they always wanted.
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IPOs: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. Online Trading My Broker Motilal Oswal Securities Limited provides a platform of becoming our own broker with complete research support from MOSL which helps us to make right decision at right time. We can choose our trading a/c which suits our trading habits & preference and trade anywhere, anytime. Buying and selling is as easy as click of a button.

NEW OFFERINGS:
MOST SHARES M 50 (Act like funds and trade like shares)

Motilal Oswal has launched Indias first fundamentally weighted ETF based on S&P CNX NIFTY Index An open ended exchange traded fund. MOST Shares M 50 takes the NIFTY 50 constituents and remixed them in a different proportion using Motilal AMCs pre-defines methodology; based on fundamental performance and valuation MOST Share M 50 is an open ended exchange traded fund giving the investors the benefits of investing in a mutual fund that trade like a share i.e. a diversified blue chip portfolio, real time liquidity and prices.

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Exchange Traded Fund: ETFs are just what their name implies: baskets of securities that are traded, like individual stocks, on an exchange. Unlike regular open-end mutual funds, ETFs can

be bought and sold throughout the trading day like any stock.

Advantages of Most M50: Higher allocation to stocks with superior fundamentals and reasonable valuation. Combines the benefits of passive allocation and active execution Lower cost structure (apprx 1% against 2%) as compared to the traditional investment product. No entry/exit load Tax efficient exposure to the market. Complete transparency with daily portfolio exposure. Available at low denomination of less than Rs. 100/Uses of Most Shares M50: All types of investors i.e. Retail or Institutional, Long term or short term can use the Most shares M50 for the following strategies:2. 3. 4. 5. Investing Trading Hedging Arbitrage

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 4.12 STRATEGIC TOOLS:-

SWOT ANALYSIS OF MOTILAL OSWAL SECURITIES LIMITED

Strengths:
Large and diverse distribution network MOSLs financial products and services are distributed through a pan-India network. Its business has grown from a single location to a nationwide network spread across 1568 business locations operated by our business associates or directly by us in 595 cities and towns.
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Strong research and sales teams

MOSL research teams are focused on cash equities, equity Derivatives and commodities. It has been awarded Asia Money Polls 2007 with 'Best Overall Country Research Local Brokerage'

Brand recognition

'Motilal Oswal' is a well-established brand among retail and institutional investors in India. MOSL have been able to leverage its brand awareness to grow its businesses, build relationships and attract and retain talented individuals.

Weakness:Very less exposure towards the retail business. Most revenue generation from the franchisee business only. No Establishment as Mutual Fund though have a strong research base.

Opportunities: Growing Financial Services industrys share of wallet for disposable income. Huge market opportunity for wealth management service providers as Indian wealth management business transforming from mere wealth safeguarding to

growing wealth. Regulatory reforms would aid greater participation by all class of investors. Leveraging technology to enable best practices and processes. Increased appetite of Indian corporate for growth capital.

Threats: Execution risk. Slowdown in global liquidity flows. Increased intensity of competition from local and global players. Unfavorable economic conditions
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 4.13 BCG Matrix of MOSL products

H
PMS MF AMC Online Broking Insurance

Growth Rate

Investment Banking Private Equity Offline Broking

H
Market Share
1. Stars = (high growth, high market share):

Use large amounts of cash and are leaders in the business so they should also generate large amounts of cash.

Frequently roughly in balance on net cash flow. However if needed any attempt should be made to hold share, because the rewards will be a cash cow if market share is kept.

In the MOSL PMS, Investment banking & Private equity all are falling under the star. Because they create high growth and high market share with more and more revenue.

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2.

Cash Cows = (low growth, high market share): Profits and cash generation should be high, and because of the low growth, investments needed should be low. Keep profits high Foundation of a company MOSLs offline broking falls under the cash cow covering high market share and low growth.

3.

Dogs =(low growth, low market share):

Avoid and minimize the number of insurance company. Beware of expensive turn around plans. Deliver cash, otherwise liquidate Insurance fall under the dog so, MOSL expands the product otherwise liquidate the insurance.

4.

Question Marks (= high growth, low market share): Have the worst cash characteristics of all, because high demands and low returns due to low market share If nothing is done to change the market share, question marks will simply Absorb great amounts of cash and later, as the growth stops, a dog. Either invests heavily or sells off or invests nothing and generates whatever cash it can. Increase market share or deliver cash MOSL MF, AMC, Online broking fall under the Question Mark category.

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 4.14 Porters Five Force Model

Porter's five forces analysis is a framework for the industry analysis and business strategy development developed by Michael E. Porter of Harvard Business School in 1979. It uses concepts developed in Industrial Organization (IO) economics to derive five forces which determine the competitive intensity and therefore attractiveness of a market. Attractiveness in this context refers to the overall industry profitability. An "unattractive" industry is one where the combination of forces acts to drive down overall profitability. A very unattractive industry would be one approaching "pure competition". Porter refers to those forces close to a company that affect its ability to serve its customers and make a profit. A change in any of the forces normally requires a company to re-assess the marketplace. The overall industry attractiveness does not imply that every firm in the industry will return the same profitability. Firms are able to apply their core competences, business model or network to achieve a profit above the industry average.
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4.15 Bargaining power of Buyers:

It is also described as the market of outputs. The ability of customers to put the firm under pressure and it also affects the customer's sensitivity to price changes. There are various types of investors who trade through stock broking houses like MOSL, which includes investors like small investors, medium net worth investors, business partners, institutional investors and mutual fund companies. Here the bargaining power of stock broking houses depends on how big the investor is. So here we can say that bargaining power of stock broking houses is high in case of small investors. While the bargaining power is moderate in case of HNI (High New Worth Investors)/ MNIs (Medium Net Worth Investors) and business partners. But the in case of mutual fund companies and institutional investors bargaining power is less. There is competitive buzz in stock broking industry; competitors are offering low brokerage and best services with added feature and switching cost is pretty much less. So the bargaining power is more inclined towards the investors and they can easily switch over to competitors product.

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4.16 The intensity of Competitive rivalry:

For most industries, this is the major determinant of the competitiveness of the industry. Sometimes rivals compete aggressively and sometimes rivals compete in non-price dimensions such as innovation, marketing, etc The company is facing the competition from local as well as national level players. The local players provide facility for off-line trading while the national players like ICICIdirect.com and Kotakstreet.com, HDFC Security provide online trading services. There are also other big names like Indiabulls, Angel broking, Sharekhan, Marwadi etc. encircles the company form both the sides by providing online and off-line trading with competitive services. As in broking and typically financial industry product innovation is not the major determinant of competition as product can be easily imitate by other players the price factor plays a major role in this industry.

4.17 Threat from Potential Entrants:

Profitable markets that yield high returns will attract new firms. This results in many new entrants, which will effectively decrease profitability. Unless the entry of new firms can be blocked by incumbents, the profit rate will fall towards a competitive level (perfect competition). Nationalized banks are also thinking to enter in this field by tying up with broking houses. E.g. Bank Of Baroda. The entry barriers to this industry are huge capital, Technological awareness, regulatory constraints, Experience curve required, Network connectivity and Expected Retaliation.
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4.18 Threat from Substitutes:

The existence of close substitute products increases the propensity of customers to switch to alternatives in response to price increases (high elasticity of demand). The instruments like Bank FD, post office etc. are major competitors for this broking house and their products. The companies and banks which are having these instruments can plunge into this industry.

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CHAPTER:- 5

THEORITICAL ASPECT OF STUDY

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5.1 Percentage of sub brokers present in each region

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5.2 BUSINESS MODELS

Hybrid Models: MOSL

-Brand -Marketing Support - Advisory Support -Dedicated Advisors -Investment Ideas -Inactive to Active -Business Development -Sales Support -Training -Systems & Process Dev -Performance Training -Back office -Centralized RMS

Franchise e
- Dealers - Relationship Managers - MOSL Business Development officers - Customer Service - Infrastructure - Dealing Terminals - Connectivity - Regional MOSL support Team

Customer

Products offered: - Equity, Commodity, PMS and Mutual Fund

At MOSL we believe in treating our sub-brokers business as if were our own. In this true spirit of partnership we have set up a dedicated team of Business Development Manager (BDM) who function as part of the sub-broker team. The BDM would help sub-brokers in the following ways:Joint sales meeting for acquiring HNI customers Establishing Systems & Processes Conducting Seminars & Investors meet Business Plan Preparation Local area marketing support
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Business model

Sub broker

Remisier/sub broker

A person wit good track record & reputation in financial services/other business/social circles with a good client base Minimum 2-3 years experience in selling financial products as main broker/sub broker/Remisier/Mutual fund distributor/Insurance advisor/Financial planner or an employee of existing broker/sub broker Capacity o invest minimum 5-10 lacs initially and ability to invest continuously in infrastructure and people. Willingness to design office premises in accordance with the policies laid down by MOSL

A person with a good track record & reputation in financial services/other business/social circles with a good client base Minimum 2-3 years of experience in selling financial products Capacity to invest minimum 2 lacs

Offerings to sub broker

Product support

Marketing & sales support

Service support

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BSE,NSE,NSE F&O, BSE F&O, NCDEX, NDSL, CDSL, E trading PMS Mutual fund

One relationship manager will be assigned to you for your regular research advice & market updates through chat phone-emails

One customer service executive will be assigned to you for your routine queries through chat-phoneemails

Marketing and business Centralized web based development support on a back office access will be regular basis provided Start up kit comprising of glow sign flex, visiting cards, marketing broachers etc will be provided by MOSL to help kick start the business.

Offerings to Remisier

Product support

Infrastructure Support

Sales support

Back office support

BSE,NSE,NSE Trading terminal with F&O, BSE F&O, Orion NCDEX, NDSL, software(BSE/NSE) CDSL, E trading PMS Mutual fund Dealing desk Direct Landline Phone Conference room

Research advice & market updates through chat phone emails

Issuing notes/bills clients

contract to end

Online risk management software & back office software

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Unique offerings partnership

for

special For Entrepreneurs who can set up their own office space

For entrepreneur wanting to set up their business at no capital cost

Yes

Multiple Products

BSE,NSE,NSE F&O,BSE Yes F&O,NCDEX,NSDL,CDSL,e broking, PMS,MF(direct & exchange traded),Private equity, margin funding**, distribution of IPO**,distribution of insurance**

Infrastructure State of the art offices with No Support experienced managers Trading terminal NSE & BSE Dealing desk Direct landline phone Conference facilities Research Morning calls Yes Interaction with research desk Sector specific reports Research access thorou7gh uppermost portal Advisory Centralized advisory support Yes support Dedicated advisor Trading software Equity CTCL Id- orion E broking CTCL Id: My broker Commodities CTCL: ODIN Business development support Business conversion support Service Dedicated team of business Yes* development managers who assist your business growth Dedicated team to provide Yes* operational training & helps in converting business One customer executive will be Yes assigned to you for your routine Yes

Yes

Yes

Yes

Yes

Thorough branch

Through branch
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support RMS

queries through phone emails Online software software risk & management Yes back office Yes

Single rms software for online and offline clients Connectivity Thorough VPN Yes Through VSAT Idea Unique online platform for Yes dashboard daily dissemination of research recommendation Quarterly business review Comprehensive business Yes review to under stand your business progress and suggest suitable action points Through branch Yes

Yes*

Mini admin clients Limits can be directly Yes terminal set by BA (Deposit based) Digital services digital contract notes, Auction Yes bills, Leon and SSTT Certificates

Thorough branch

Yes

Rewards and Unique business partner Yes recognition Fraternity ProgramUPPERMOST Technical analysis software Chatting software Sms services Falcon Charting Software Yes

Yes

Yes

Chat facility with Advisor

Yes

Yes

Trade conformation, DP, Yes Banking and Accounting Opening Ledger, bill, Online Trade (on request) Payment gateway tie up with Yes 247 banks to enable our customers online transfer funds

Yes

Online payment gateway

Yes
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Seminars and Organizing Seminar/investor Yes marketing meets (with minimum 200 support attendees) Other tools

Yes*

Wire Unique Client Yes No management Software WMS Portfolio Tracker SMS Software Uppermost ( List of unique offering by MOSL to Franchisee and Remisier business model) *Conditions Apply ** Offered through Group Company of MOSL

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CHAPTER:- 6

DATA ANALYSIS AND INTERPRETATION

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6.1 From how many years you are into the broking business ?

NO. OF YEARS
< 5 years 6 - 10 year 11 - 15 year > 15 years TOTAL

RESPONDENT
99 36 7 8 150

%
66 24 4.67 5.33 100

180 160 140 120 100 80 60 40 20 0 < 5 years 99 0.66 %

No. of years of current setup

0.24 %

36 6 - 10 year

0.045 % 7 11 - 15 year

0.05 % 8 > 15 years

INTERPRETATION The table above represents that out of 150 respondents, 99 respondents into the market as they have less than 5 years of experience and here, only 8 respondent have more than 15 years of experience.

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6.2 Which are the products and services are provided to you by your broker/company ?

PRODUCTS AND SERVICES

Equity Commodity Insurance IPO PMS Currency mutual fund marin of funding any other TOTAL

RESPONDENT
146 82 58 91 48 48 59 15 7 554

%
26.35 14.80 10.47 16.426 8.66 8.66 10.65 2.71 1.27 100

Product and services provided by broker

26% 180 160 140 120 100 80 60 40 20 0

14.8% 146 82 10%

16% 9% 91 48 48 9% 11% 3% 15

58

59

1.2% 7

INTERPRETATION From the 150 respondents almost 146 respondents were provided Equity and derivates by their broker. (26%) And only 15 are providing the margin of funding .

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So, Motilal has the opportunity to focus on the products which are less popular products like margin of funding, this provides MOSL potentials for acquiring more and more business.

6.3 Which of the following services/facilities are provided to you by your broker/company ? [Please point out relevant options]

SERVICES AND FACILITIES

Different account opening scheme Depository services Different online trading software Investment advices Risk management desk Account opening within 24 hours Mutual fund research desk Business Development software SMS configuration to franchisees clients CDSL-rights Investment banking Branding materials online mutual fund platform Customer service desk HNI desk TOTAL

RESPONDENT
124 89 111 61 34 30 35 80 138 123 81 31 13 32 50 1032

%
12.01 8.62 10.75 5.91 3.29 2.90 3.39 7.75 13.37 11.91 7.84 3.00 1.25 3.10 4.84 100

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Facilities provided by broker

1% 3% 8% 3% 5% 12%

Different account opening scheme Depository services Different online trading software Investment advices

9%

Risk management desk Account opening within 24 hours Mutual fund research desk

12%

11%

Business Development software SMS configuration to franchisees clients CDSL-rights

6% 13% 8% 3% 3% 3%

Investment banking Branding materials

INTERPRETATION
From the 150 respondents almost 89 respondents were provided Depositary services by their broker. Other services HNI desk services were 50 respondents favoring this choice. MOSL has to focus on the prospects from view point of services they are been rendered by their present broker. This strategy will increase the market potential for their business expansion. MOSL has to focus on the prospects who are not satisfied with the services like Online mutual fund Platform, customer service desk, Account opening within 24 hours etc.
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6.4

which are your main sources for getting new clients ?

SOURCES
Reference Advertisement Sales team Others TOTAL

NO. RESPONDENT
148 35 19 27 229

%
64.63 15.28 8.30 11.79 100

Sources for getting client

12% 8% Reference Advertisement Sales team 15% 65% Others

INTERPRETATION From the total 150 respondents, majority of the respondent was in reference. And the least among them is sales team. The most important thing is that, into the market the most of the clients are coming through the reference of the existing clients and that will be most helpful and boost up the business.

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6.5 what do you think are the qualities that attributed for you to be a successful sub - broker? QUALITIES
The brand value of the company you are associated with. Higher ratio of successful trading calls generated. A culture of properly researched Ideas coupled with good infrastructure & client servicing. Other please specify... TOTAL

NO. OF RESPONDENT
99 96 70 4 269

%
36.80 35.69 26.02 1.49 100

Qualities attributes to be a successful subbroker

1% 26% 37% 36% Higher ratio of successful trading calls generated. A culture of properly researched Ideas coupled with good infrastructure & client servicing. Other please specify... The brand value of the company you are associated with.

INTERPRETATION 36% of the respondents thinks that higher ratio of successful trading calls given to the customer is the key to become a successful broker. Motilal Oswal being best for its Equity research in the industry can approach these clients as they would like to take the research services of Motilal Oswal Securities in order to give more successful calls to their customers. And also almost 37% of the respondents thinks thats the brand value of the co. you are associated with are concerned.

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6.6 What are the factors according to you for having a satisfied client?

FACTORS
Prompt & timely addressing of client queries Best technology in place Thinking ahead of time Any others. TOTAL

NO. OF RESPONDENT
79 48 51 4 182

%
43.41 26.37 28.02 2.20 100

Factors needed to satisfy clients

43.4% 140 120 100 80 60 40 20 0 26.4% 28%

79

48

51

2.2% 4

Prompt & Best Thinking Any others. timely technology in ahead of time addressing of place client queries

INTERPRETATION From the total 150 respondents, almost 43.4 % of the respondents think that mostly clients are looking for prompt & timely services from them.

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6.7

What are the immediate challenges for this industry & your plan to tackle this?

IMMEDIATE CHALLENGES
Lack of interest in the stock markets in the retail category Source for fresh capital drying up from both domestic & foreign investors Cut costs & wait for good times to come Any other TOTAL

RESPONDENT
97 60 58 5 220

%
44.09 27.27 26.36 2.27 100

Immediate challenges
2% Lack of interest in the stock markets in the retail category 26% 44% Source for fresh capital drying up from both domestic & foreign investors Cut costs & wait for good times to come Any other

28%

INTERPRETATION From the 150 respondents, the higher value is 44% into the lack of interest in the stock market in the retail category, where the other is 28 % for the both cut cost and wait for good time to come and also for the sources for the fresh capital drying up from both domestic and foreign investors. This will mostly helpful to know the problems and also the challenges that will be tackle in the share market.
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6.8

Please rate the importance of following development criteria for your business. (Circle the one that is most suitable to your preference. Consider 5 as most preferred and 1 as the least preferred)
1 2 3 4 5 TOTAL

CRITERIA FOR DEVELOPMENT OF THE BUSINESS

NOT AT ALL NOT NEUTRAL IMPORTANT VERY IMPORTANT IMPORTANT IMPORTANT

Growth Opportunities 6 16 65 63 Revenue Sharing ratio 5 16 74 55 Brand Name 4 5 39 37 65 Business Model 2 3 35 37 73 Research Analysis 10 11 18 47 64 Products & services 10 33 63 44 Initial Deposit 4 8 31 79 28 [note Here consider 1 as not at all important and same as the 5 as the very important and also 3 as the neutral]

150 150 150 150 150 150 150

Chart Title
Client Acquisition Client base Active Ratio Client satisfaction Revenue Growth 105 75 50 26 5 5 2 2 2 NOT AT ALL IMPORTANT 8 2 4 1 10 22 6 IMPORTANT VERY IMPORTANT 23 58 37

67

61 58 64

57

NOT IMPORTANT

NEUTRAL

INTERPRETATION Here the percentage of the respondent in the very important is much more high as compared to the others.Client satisfaction is one of the most important factors for developing the business. The other leading important factors or the criteria are revenue growth, client base, active ration, etc.

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6.9

Please rank the following business development support as per their importance in your business. (Rank from 1 as most imp. to 8 as least imp.)
Business development Support No. of responses Rank 16.5 17.125 16.75 14.625 17.375 13.375 16.5 16.375 5.5 2 3.5 8 1 5.5 7 3.5

Centralized Advisory & Research Support Local area Marketing & Business Support Initial Training & Business migration Easy access to senior management Centralized customer services Office look & feel Seminar & Investor Meet B-Plan Preparation & other support

No. of responses
No. of responses 16.5 17.125 16.75 17.375 14.625 13.375 16.5 16.375

INTERPRETATION From the above table, it is said that the no. of the respondents are high into the centralize customer services and same as the least one is the easy acess to the senior management. The most of the respondents like the customer support, local marketing, etc. This will let MOSL to know the requirement and support required by the sub-brokers for their business development, which in other hand will be very helpful for future correspondence with their prospects.

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6.10 What kind of support you require which will lead to next level. (Please give rating from 1 to 4; first priority will be ranked 1 and so on).
supports require to lead the next level Marketing and business development support Brand value of broker Successful calls given by broker Back office/customer care support no. of resp. 33 33 33.25 32.75 Rank 2.5 2.5 1 4

support require to lead the next level

no. of resp. rank

4 2.5 2.5 1 33 33 33.25 32.75

Marketing and business development support

Brand value of broker Successful calls given by broker

Back office/customer care support

INTERPRETATION From the above table, we can see that the red line shows the rank and the blue one is for the no. of respondents. Here, the most of the respondents preferred the successful calls given by the broker and like wise to all. This will helpful to know or to go to the next level of the business and increase the growth.

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6.11 Please rate the importance of following criteria while selecting a broker for Franchisee (Circle the one that is most suitable to your preference. Consider 5 as most preferred and 1 as the least preferred)
Criterias for Franchisee Acquisition
Growth Opportunities Revenue Sharing ratio Brand Name Business Model Research Analysis Products & services Initial Deposit NOT AT ALL IMPORTANT 0 0 4 2 10 0 4 NOT IMPORTANT 6 5 5 3 11 10 8 NEUTRAL 16 16 39 35 18 33 31 IMPORTANT VERY IMPORTANT 65 63 74 55 37 65 37 73 47 64 63 44 79 28 TOTAL 150 150 150 150 150 150 150

Criterias for Franchisee Acquisition

Initial Deposit Products & services Research Analysis Business Model Brand Name Revenue Sharing ratio Growth Opportunities 4 8 10 10 23 4 5 5 6 16 16 11 35 39 74 65 31 33 18 47 37 37 63 64 73 65 55 63 79 44 28

NOT AT ALL IMPORTANT

NOT IMPORTANT

NEUTRAL

IMPORTANT

VERY IMPORTANT

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INTERPRETATION Out of 150 respondents, 74 have given top importance to Revenue sharing ratio; growth opportunity and research analysis are marked as important by 65 and 64 respondents. Business model, product & Services and Initial deposit are being marked as neutral by 37, 63, 79 respondents respectively. MOSL has to give high importance to the Revenue sharing ratio followed by the other criteria like Research Analysis and Growth Opportunity for acquiring the franchisee and for future business expansion.

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6.12 What kind of research analysis is provided by your broker?

TIME
Daily Weekly Monthly Quarterly Annually

Physical
0 0 7 5 21

Email
89 13 4 0 0

Uploaded on Website
15 24 11 0 0

Providing research reports

Physical Email Uploaded on Website

89

15 13 0 Daily 0 Weekly

24 11 0 4 7 5 Quarterly Annually 0 21 0 0

Monthly

INTERPRETATION From the above table, it is said that out of 150 respondents, the majority of the respondent is in the daily email through. The least one is the daily & weekly physical reports. It helps to know the current situation and how to boost up the business.

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6.13 Have ever change your sub-brokership in the past ?

ANSWER Yes No TOTAL RESPONDENT 19 131 150 % 12.67 87.33 100

Changing of sub-brokership in the past

Yes 13%

No 87%

INTERPRETATION Out of the 150 respondents, the majority is NO. Almost 87 % were not changing their broking business into the past. The remaining 13 % have changed their sub brokership into the past.

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6.14 What is your initial investment for starting your business?

INITIAL INVESTMENT Less than 100,000 100,000 to 300,000 300,000 to 500,000 More than 500,000 TOTAL NO.RESPONDENT 20 73 34 23 150 % 13.33 48.67 22.67 15.33 100

Initial investment
49% 140 120 100 80 60 40 20 0 Less than 100,000 100,000 to 300,000 300,000 to 500,000 More than 500,000 20 13% 73 34 23 23% 15%

INTERPRETATION Out of 150 respondents, the most of the respondents are invest Rs. 100,000 to 300,000 as initial investment. The least one is into the less than 100,000. The percentage is almost 13 %

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6.15

Please rate your satisfaction level with the services provided by your present broker Satisfactory level
Very satisfied Satisfied Neutral Not satisfied Not at all satisfied TOTAL

No. of respondent
110 30 9 0 1 150

%
73.33 20 6 0 0.67 100

Satisfication level

73% 20% 6%

Verry satisfied Satisfied Neutral Not satisfied Not at all satisfied 1% 0%

INTERPRETATION From the above information, it is stated that the most of the respondent of 110 out of 150 feel the satisfaction level high.

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HYPOTHESIS:(1) Ho: There is significant relation between CLIENT BASE and NO. OF YEARS IN THIS BUSINESS. H1: There is no significant relation between CLIENT BASE and NO. OF YEARS IN THIS BUSINESS.

ANOVA CLIENT BASE Sum of Squares Between Groups Within Groups Total 3.342 57.882 61.224 df 3 130 133 Mean Square 1.114 .445 F 2.502 Sig. .062

Since significance is .06>.05. Ho is rejected. H1 is accepted. So, we can say that there is no significant relation between client base and no. of years in this business.

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(2)

Ho: There is significant relation between PRODUCT & SERVICES and NO. OF YEARS IN THIS BUSINESS. H1: There is no significant relation between PRODUCT AND SERVICES and NO. OF YEARS IN THIS BUSINESS.

ANOVA PRODUCT & SERVICES Sum of Squares Between Groups Within Groups Total 8.124 103.197 111.321 df 3 130 133 Mean Square 2.708 .794 F 3.411 Sig. .020

Since significance is .020 >.05 Ho is accepted. H1 is rejected. So, we can say that there is significant relation between product and services and no. of years of the business.

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CHAPTER:- 7

RESEARCH FINDINGS AND CONCLUSIONS

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RESEARCH FINDINGS & CONCLUSIONS

Even though MOSL has less number of franchisees in Ahmedabad, it is considered a well-reputed broking firm in the market. It has established itself as one of the leading brokerage firm of India. Motilal has the opportunity to focus on the products which are less popular products like Private equity. Investment Banking too is lacking behind, this provides MOSL potentials for acquiring more and more business. When asked about support services 40% of respondents wants centralized advisory & research reports support, 20% of respondents need easy access to centralize customer service and 266% office look & feel, as primary requirements. Equity with 26% & IPO 16% with & Commodity with 15% are the major trading offering & contribute highly to gross brokerage MOSL has to focus on the prospects from view point of services they are been rendered by their present broker. This strategy will increase the market potential for their business expansion. MOSL has to focus on the prospects who are not satisfied with the services like Business Development Software, Online mutual fund Platform, Different trading software, MF research desk, Account opening within 24 hours etc.

MOSL has all the varied departments it will be easy for them to focus on the competitors sub broker, prospects for business expansion.

MOSL to know the requirement and support required by the sub-brokers for their business development, which in other hand will be very helpful for future correspondence with their prospects.
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CHAPTER:- 8 RECOMMENDATON AND SUGGESTIONS

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RECOMMENDATIONS

We have examined that different investors are giving priorities to investment instrument as per their need. Accordingly, as per the needs of the client, a product can be recommended to him. Motilal Oswal Financial Services Limited (MOSL) has strength in Top Quality Research, Internet Trading, Investment Advisory Services, Value Added Back office services and DP Services. The firm also deals in commodities and mutual funds to add more number of clients.

1. Motilal Oswal should increase its promotional activities and it should make aware people of Ahmedabad city about its product and services. 2. Motilal Oswal should turn the existing customer to trade or invest in other product, which they are not aware about, or not investing in them. 3. Motilal Oswal should organize seminars and presentation of highly experienced person. It should provide classroom training and literature to those who are eager to learn about share market. It should distribute documents about product information. 4. Initial deposit, which quite high, should be reduced up to a considerable level. If not possible than that should be an easy installment scheme option available. 5. One of the most important aspect while selecting a Broking firm is Revenue Sharing Ratio. In fact many times just because of the above two factors (i.e. Initial deposit & Revenue Sharing Ratio) a prospect remove the name of MOSL from the list while choosing a broker.

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BIBLIOGRAPHY
Websites:- http://www.motilal.com/knowledge_center - http://www.nseindia - http://www.monycontrol.com/news/economy/india-to-grow-at-852010-11-crangrajan_471913.html

- http://www.thehindubusinessline.com/blbby/stories/2004042700050600.htm - http://www.dnb.co.in/equitybroking2009/financial_analysis.asp - http://www.valuebasedmanagement.net/methods_bcgmatrix.html - http://www.businessworld.in/index.php/broking.html - http://www.oppapers.com/subjects/swot-analysis-of-brokerage-industry-in-india-page1.html - www.angelbroking.com - www.icicidirect.com - www.kotaksecurities.com - www.religaresecurities.com - www.shahinvestments.com News papers:-

The Economic Times Mint

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ANNEXURE

AN OVERVIEW OF EQUITY SUB BROKERS IN AHMEDABAD REGION

QUESTIONNAIRE
Disclaimer

:-

We are MBA students and as a part of our curriculum, we are here to analysis of sub-brokers and financial products & services provided to sub-brokers by main brokers in Ahmedabad. We ensure you that the data given by you would be totally confidential and will be used for project purpose only. So kindly help us by giving your valuable time for filling this questionnaire.

Q-1

From how many years you are into the broking business ?specify ___________ < 5 years [ ], 6-10 years [ ], 11-15 years [ ], > 15 years [ ]

Q-2

Which are the products and services are provided to you by your broker/company ? Equity Commodity Insurance IPO PMS [ [ [ [ [ ] ] ] ] ] Currency Mutual fund Margin funding Any other [ [ [ [ ] ] ] ]

Q-3

Which of the following services/facilities are provided to you by your broker/company? [Please point out relevant options] Different account opening scheme Depository services Different online trading software Investment advices Risk management desk Account opening within 24 hours Mutual fund research desk Business Development software [ ] [ ] [ ] [ ] [ ] [ ] [ ] [ ] CDSL-rights Investment banking Branding materials Customer service desk HNI desk [ ] [ ] [ ]

online mutual fund platform [ ] [ ] [ ] 87

SMS configuration to franchisees clients[ ]

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Q-4

which are your main sources for getting new clients ? Reference Advertisement Sales team Others [ [ [ [ ] ] ] ]

Q-5

what are the percentage of clients dealing in the followings? Cash ________, F/O _________, Commodity ________________

Q-6 what do you think are the qualities that attributed for you to be a successful sub broker? o o o o o The brand value of the company you are associated with. [ Higher ratio of successful trading calls generated. [ A culture of properly researched Ideas coupled with good infrastructure & client servicing. [ All the above [ Other please specify... [ __________________________________________________________ ] ] ] ] ]

Q-7

What are the factors according to you for having a satisfied client? o o o o o o o o Prompt & timely addressing of client queries [ ] Best technology in place [ ] Thinking ahead of time [ ] st nd 1 and 2 one [ ] nd rd 2 and 3 [ ] st rd 1 and 3 [ ] All the above [ ] Any others. [ ] ___________________________________________________________

Q-8

What are the immediate challenges for this industry & your plan to tackle this? o o o o o Lack of interest in the stock markets in the retail category [ Source for fresh capital drying up from both domestic & foreign Investors [ Cut costs & wait for good times to come [ All of the above [ Any other , ___________________________________________[ ] ] ] ] ]

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Q-9

Please rate the importance of following development criteria for your business. (Circle the one that is most suitable to your preference. Consider 5 as most preferred and 1 as the least preferred) Client Acquisition Client base Active Ratio Client satisfaction Revenue Growth 1 1 1 1 1 2 2 2 2 2 3 3 3 3 3 4 4 4 4 4 5 5 5 5 5

Q-10

Please rank the following business development support as per their importance in your business. (Rank from 1 as most imp. to 8 as least imp.) Rank Business Development Support Centralized customer services Office look & feel Seminar & Investor Meet B-Plan Preparation& other support Rank

Business Development Support Centralized Advisory & Research Support Local area Marketing & Business Support Initial Training & Business migration Easy access to senior management

Q-11

What kind of support you require which will lead to next level. (Please give rating from 1 to 4; first priority will be ranked 1 and so on) o Marketing and business development support [ ] o Brand value of broker [ ] o Successful calls given by broker [ ] o Back office/customer care support [ ]

Q-12

Please rate the importance of following criteria while selecting a broker for Franchisee (Circle the one that is most suitable to your preference. Consider 5 as most preferred and 1 as the least preferred) Growth Opportunities Revenue Sharing ratio Brand Name Business Model Research Analysis Products & services Initial Deposit 1 1 1 1 1 1 1 2 2 2 2 2 2 2 3 3 3 3 3 3 3 4 4 4 4 4 4 4 5 5 5 5 5 5 5

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Q-13

What kind of research analysis is provided by your broker? Daily Weekly Monthly Quarterly Annually

In which form is it provided? Physical Website Q-14 Email Uploaded on

Have ever change your sub-brokership in the past ? Yes [ No [ ], _____________________________________ ],

Q-15

What is your initial investment for starting your business? Less than 100,000 100,000 to 300,000 300,000 to 500,000 More than 500,000 [ [ [ [ ] ] ] ]

Q-16

Please rate your satisfaction level with the services provided by your present broker High 1 2 3 4 5 Low

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Personal Details

Name :- ____________________________________________________________ Address :- __________________________________________________________ ___________________________________________________________________ ___________________________________________________________________

Contact no :-________________________________________________________ E-mail Id :- _________________________________________________________ Company name :-____________________________________________________

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