FINANCIAL SERVICES PROVIDED BY

SUMERU SECURITIRS PRIVATE LIMITED

By:
SAGAR TIMILSINA

People’s Campus
T.U Registration No: 7-2-0271-0391-2013

Exam Roll.no:13997/14

An Internship Report Submitted to:

Office of the Dean

Faculty of Management

Tribhuvan University

In partial fulfillment of the requirements for the degree of

Bachelor of business Administration (BBA)
Paknajol, Kathmandu
September, 2017
 APPROVAL SHEET

This is to certify that the Internship Report

Submitted by:
SAGAR TIMILSINA
T.U. Registration Number: 7-2-0271-0391-2013

Entitled:
“FINANCIAL SERVICES PROVIDED BY OXFORD SECURITIES
PRIVATE LIMITED”
I certify that I have read the document and in my opinion, it is satisfactory in scope and
quality as internship project report in partial fulfillment for the undergraduate course

BBA program held in People’s Campus, Tribhuvan University.

……………………………………..
Madhusudan Gautam
Supervisor
 RECOMMENDATION LETTER

This is to certify that the Internship Report

Submitted by:
SAGAR TIMILSINA
T.U. Registration Number: 7-2-0271-0391-2013

Entitled:
“FINANCIAL SERVICES PROVIDED BY SUMERU SECURITIES
PVT. LTD
Has been prepared as approved by this campus. This Internship Report is forwarded for
Examination.

……………………………
Nirmal Mani Panthi
Campus Chief
People’s Campus Paknajol
 STUDENT’S DECLARATION

I hereby declare that the internship report entitled “FINANCIAL SERVICES

PROVIDED BY SUMERU SECURITIES PVT. LTD ” submitted to Office of Dean,
Faculty of Management, Tribhuvan University, is my original work done as per the
partial fulfillment of the requirement of the degree of Bachelors of Business
Administration (BBA) under the guidance and supervision of Mr. Madhusudan Gautam .

…………………………..
SAGAR TIMILSINA
Exam Roll No.: 13997/14
T.U. Registration Number: 7-2-0271-0391-2013
 ACKNOWLEDGEMENT

I want to express my gratitude to Tribhuvan University and the People’s campus for
incorporating the internship program in BBA Program. This internship has been a
valuable step for me to be a good analyst in the field of Management. The internship has
helped me a lot to be familiar with the organization working environment and explore my
academic knowledge in providing solution to the real world problem.

I am very much indebted to our respected Campus Chief Nirmal Mani Panthi and our
Program Coodinator Rameshwor Karmacharya, for their motivational suggestions. I
would also like to thank our supervisor Mr. Madhusudan Gautam who has shared his
knowledge for writing and completing the internship project report. Moreover, I am
grateful to the sumeru securities family, especially Mr .sunil shrestha, compliance officer
of sumeru Securities, Mr. mr. jeevan prasai and indra dangol who has always been there
for the necessary guidance and continuous support throughout my internship duration.

Lastly, but not the least, I would also like to thank to my respected and loving parents for
their moral support, love and encouragement and all my friends who have supported me
to complete the project in time. I am thankful to each and every individual who has
provided their valuable suggestions and wish me for the success of the project.
Without helps of the particular that mentioned above, I would face many difficulties
while doing this. So I would like to thank them all once again!

Sincerely,

sagar timilsina
 Table of Contents
Cover page
Approval Page ii
Recommendation iii
Student’s declaration iv
Internship Certificate v
Acknowledgements vi
Table of contents vii
List of tables ix
List of figures x
Acronyms xi

CHAPTER I:INTRODUCTION...........................................................1
1.1 Background..................................................................................................................1
1.2 objectives of Study.......................................................................................................2
1.3 Methodology................................................................................................................3
1.3.1 Organization Selection..........................................................................................3
1.3.2 Placement..............................................................................................................3
1.3.3 duration of internship............................................................................................4
1.3.4 activities performed……………………………………………………………….5

1.5 Limitations of the Study...............................................................................................5

CHAPTER II:INTRODUCTION OF THE BOKERAGE INDUSTRY

..................................................................................................................7
2.1 Meaning of Brokerage firm..........................................................................................7
2.1.1 History of brokerage firm......................................................................................7
2.2 Introduction of Securities Market.................................................................................8
2.3 Instruments of Stock Market......................................................................................10
2.4 History of Stock Market in Nepal...............................................................................11
2.5 Stock Exchange..........................................................................................................11
2.5.1 NEPSE................................................................................................................12
 2.5.2Securities Board of Nepal (SEBON)....................................................................12

CHAPTER III:INTRODUCTION TO OXFORD SECURITIES

PRIVATE LIMITED...........................................................................13
3.1 Introduction................................................................................................................13
3.1.1 Mission, Vision and Objectives of Oxford securities Pvt.Ltd..............................13
3.2 Introduction to Various Department of Oxford Securities Private Limited................14
3.3 Trading System..........................................................................................................16
3.4 Capital Structure.........................................................................................................21
3.5 Present Situation.........................................................................................................21
3.5.1 NEPSE (Nepal Stock Exchange).........................................................................21
3.5.2 Central Depository System and Clearing (CDSC) Limited.................................23
3.5.3 Beneficial Owner (BO)........................................................................................24
3.5.4 Depository Participant (DP)................................................................................24
3.6 Services of oxford securities:.....................................................................................25
3.7 Challenges and Opportunities.....................................................................................25

CHAPTER IV:ANALYSIS OF ACTIVITIES DONE AND PROBLEMS

SOLVED................................................................................................27
4.1 Background................................................................................................................27
4.2 Activities Performed and Lessons learnt....................................................................27
4.3 Felt/Observed Gap......................................................................................................31

CHAPTER V:CONCLUSION AND LESSONS LEARNT..............32

5.1 Conclusion.................................................................................................................32
5.2 Lessons Learnt...........................................................................................................32
5.3 Suggestions................................................................................................................34

Reference
Annex
 LIST OF TABLES

TABLE NO. NAME OF TABLE PAGES

Table 1.1 Placement in Different Departments 4

Table 3.1 New-commission rate of stockbroker 21

Table 3.2 Old-commission rate of stockbroker 22

 Acronyms
BBA : Bachelor of Business Administration

BOID : Beneficiary Owner ID

CDSC : Central Depository System and Clearing Limited

DIS : Debit Instruction slip

D-mat : Dematerialization

DP : Depositary Participant

DPID : Depository Participant ID

DRN : Dematerialization Request Number

FPO : Future Public Offering

IPO : Initial Public Offering

ISIN : International Security Identification Number

Ltd : Limited

NEPSE : Nepal Stock Exchange

OTC : Over the Counter Market

Pvt. : Private

RTS : Registrar to Share

SEBON : Security Exchange Board of Nepal

T.U. : Tribhuvan University

TDS : Tax Deduct at Service

 CHAPTER I

INTRODUCTION

Background

An internship is a period of work experience offered by an organization for a limited

period of time. They are typically undertaken by students and graduates looking to gain
relevant skills and experience in a particular field. Employers benefit from these
placements because they often recruit employees from their best interns, who have
known capabilities, thus saving time and money in the long run. Internships are usually
arranged by third-party organizations which recruit interns on behalf of industry groups.
Internship is an opportunity to observe, learn, understand and participate in the corporate
culture. It offers meaningful, practical exposure to working environment which relates to
a field of study.

In order to nourish the students with the experience of actual working environment,
internships has been made as mandatory requirement for the successful completion of the
four-year Bachelor’s of Business Administration (BBA) under Tribhuvan University.
BBA is four years international standard program consisting of eight semesters along
with internship program. Thus, BBA program is a blend of theoretical and practical
knowledge on the financial sector enabling the students in understanding business
environment and solving BBA is four years international standard program consisting of
eight semesters along with internship program. Thus, BBA program is a blend of
theoretical and practical knowledge on the financial sector enabling the students in
understanding business environment and solving practical business problems.

An internship consists of an exchange of services for experience between the intern and
the organization. Internships are used to determine if the intern still has an interest in that
field after the real life experience. This helps the interns in easily understanding the logic
behind the operations carried out in the organization. It provides the intern an opportunity
to understand how the knowledge acquired through the formal classroom discussion
sessions is applied in the real working conditions. For a student specializing in finance,
internship in financial institutions is the best option. An internship is the best way to put
theoretical knowledge into practice.

Objectives of the study

An internship is a temporary position with an emphasis on on-the-job training rather than

merely employment, and it can be paid or unpaid. I wanted to work in a stock brokerage
firm and I was always curious about it. As an intern I had certain hopes and goals to
achieve from my internship. Some of my goals and objectives of my study are as follows:

1. To enhance communication, interpersonal and public relation skill through direct

interaction with customer.
2. To gain the practical knowledge on the Nepalese Share Market.
3. To know the system of buying and selling of shares(trading).
4. To learn about the Dematerialization process.
5. To develop a professional network.
6. To learn about the organizational system.
7. To learn the experience of working activities under supervisor.
8. To accumulate new skills.

Methodology

This study is mostly descriptive in nature where the facts and findings are described in a
systematic manner. Information required for the preparation of report has been collected
from observation of the activities that are performed in the broker firm and the personal
interview and consultation with the staffs involved in different departments. Secondary
data have also been used in the report such as websites, brochures, books, newspapers
and so on.

Organization selection
The internee selected Sumeru Securities, for learning various factors influencing capital
market and to pursue future goal of becoming a security analyst. Firstly, I dropped an
application at Sumeru Securities Pvt. Ltd. , Hattisar containing curriculum vitae and
recommendation letter of my college and luckily got to be a part of Sumeru Securities for
eight weeks.

Placement

In Sumeru Securities Pvt. Ltd., the internee was given opportunity to understand and to
experience functioning of various departments. The internee was placed in Customer
Service Department, DP department, Trading Department and Account Department. The
Intern also got chance to have direct talks with staff of other brokerage firm and banks to
gain more knowledge about the capital market.

Duration of the internship

There was very short period available for intern to understand and learn various activities
carried out in different departments. Intern worked in Sumeru Securities from June 3,
2018 to July 27, 2018. The duration intern spent in different departments during
internship period is presented below:

Placement in different departments

Weeks
Departments
1st 2nd 3rd 4th 5th 6th 7th 8th
Customer                
Service
Department                
               
DP Department
               

Trading                
Department                

Accounts                
Department                

Activities performed
This part includes various task performed during the internship at the stock broker. The
eight weeks of internship was very important as per the activities performed. Sumeru
Securities provides a wide range of services to its clients. I did work in almost all
departments and gained knowledge. Some departments are Customer Service Department
(Reception), DP Department, Finance and Treasury Department (Account Department),
Trading Department, and Information Technology Department. The activities performed
during my internship period in respective department are described as follows.

General task

When internee joined Sumeru than he was not directly assigned any departments instead
he did the ordinary task. In starting period of my internship internee did following work

1. Filing and punching of form

2. Named file alphabetically
3. Data entry of detail information about clients in excel sheet
4. Updated the KYC form systematically
5. Wrote the three generation name in a notepad and their detail regarding trading of
share.
6. And made those records in register too.

Customer service department

1. Dealt with Customers and handled Phone Calls

2. Filled KYC form and filing and Documentation
3. Statement handling and printing
4. Account opened and account updated
5. Cheque Distributed and provided balance information
6. Received certificate for dematerialization
7. Account renewed and online registration
8. Scanning

Trading department
1. Filled up the cheque with necessary information
2. Filled the NEPSE code of banks in cheque
3. Verified the signature of clients in demat account and in cheque
4. Opening Trading Account for the clients.
5. Filling up the DIS cheques for the clients.
6. Sending message to the customers about their buying and selling transaction
7. Matched the information provided in cheque with the printed sheet of detail of clients

DP department

1. Checked the signature in share certificate and if not matched than made telephone
calls to shareholders and invited for making correction
2. Informing and collecting the DIS cheques of the customer when they sell shares.
3. Verified signature in cheque and dematerialized the physical share certificate
4. Printed the acknowledge letters of clients ad generated DRN
5. Informing and collecting the DIS cheques of the customer when they sell shares.
6. Transfering of shares by matching as per the request of the customer.
7. Mapping the shares when the clients buy the shares and when they makes the
payment then credited to their demat account.

Account department

1. Matched the balance of share in their account

2. Settlement of buying and selling of shares
3. Issued the statement of cheque
4. Made payments to the clients
5. Filling up the debit and credit vouchers .
6. Reconciling the statements of the bank and the day book of the company.

Limitation of the study

There is some limitation during the internship in sumeru securities. The study was
concerned simply as a partial requirement of BBA program. The following were the
limitations of the study:

1. Report had been prepared by using the limited information that had been gathered
during the internship period.
2. The departments perform various activities which were very much confidential. To
maintain confidentiality and secrecy of each and every report which Intern prepared
during the Intern period can’t be listed here.

CHAPTER II

BRIEF INTRODUCTION OF BROKERAGE FIRM

Meaning of brokerage firm

A brokerage firm, or simply brokerage, is a financial institution that facilitates the buying
and selling of financial securities between a buyer and a seller. Brokerage firms serve a
clientele of investors who trade public stocks and other securities, usually through the
firm's agent stockbrokers. A traditional, or "full service", brokerage firm usually
undertakes more than simply carrying out a stock or bond trade. The staffs of this type of
brokerage firm is entrusted with the responsibility of researching the markets to provide
appropriate recommendations, and in doing so they direct the actions of pension fund
managers and portfolio managers alike. These firms also offer margin loans for certain
approved clients to purchase investments on credit, subject to agreed terms and
conditions.

Traditional brokerage firms have also become a source of up-to-date live stock prices and
quotes. When a brokerage firm, in addition to buying and selling for clients, transacts for
its own account, it is known as a broker-dealer. A stock market is reflector of a countries
economy and brokerage firm are like reflector of stock market of country. Brokerage firm
is an entity that has polish permission of securities and exchange, among others to offer
securities in public trading acquire and sell securities, and provide portfolio management
and investment advice services to its client.

History of brokerage firm

The first recorded buying and selling of shares occurred in the 2nd century BCE in the
Rome. After Rome fell, stockbroking did not become a realistic career until after the
Renaissance, when government bonds traded in Italian city-states such as Genoa or
Venice. New stock exchanges opened their doors in the 16th and 17th centuries,
including the London Stock Exchange, which was opened at a coffee shop in 1698.In the
1800s, in the United States, the New York Stock Exchange opened its doors under a
buttonwood tree in New York City. However, the earliest brokerage firms were
established in London coffee houses, enabling individuals to purchase stocks from a
variety of organizations. They formally founded the London Stock Exchange in 1801 and
created regulations and memberships. The system was copied by brokerage firms across
the world, most notably on US and Europe.

Types of brokerage firm

The brokerage firm varies on various basis. Depending on the needs of the investor, it is
wise to choose the one that best matches the investor needs and financial goals. Some of
the types of brokerage firms can be listed below:

 Full service brokerage firm

This brokerage firm that provides a range of financial services in addition to allowing an
investor to buy and sell securities. These firms can provide customers with financial
planning services and consulting services. They can also provide trust services and
wealth management services. This is the most expensive type of brokerage firm and the
investor will be able to place buy and sell orders over the internet or telephone.

 Discount brokerage firms

This firm doesn’t provide any financial consulting or planning services. The commission
charged by discount brokerage firms is cheaper than those of full service brokerage firms.
Like a full service brokerage firm, the investor can make trade over the phone or online.
Some also do offer trades via a smart phones.
 Online brokerage firm

This firm provides its services through the internet. There are two types of online
brokerage firms. There is the type that doesn’t have physical offices at all. And there are
those that operate under a full service or discount brokerage firm. When the online
service is provided as an option of full service or discount firm, it is referred to as a self-
service account.

Meaning of stock broker

A stockbroker executes buy and sell orders submitted by investors. Stockbrokers connect
the buyers and sellers of stocks, thereby creating liquidity in the market. Stockbrokers
trade on behalf of individuals and companies, and for their services, stockbrokers charge
a flat fee or a commission, which is a percentage of the sale or purchase price.
Stockbrokers are known by numerous professional designations, depending on the license
they hold, the type of securities they sell, or the services they provide. Stockbrokers go
through extensive training to learn about securities, and must also pass rigorous licensing
exams. Stockbrokers advise their clients whether to buy, sell or hold securities. Good
stockbrokers thoroughly research any security on which they make recommendations.

Introduction to securities market

A Securities market is an exchange where sale and purchase transactions of securities are
conducted on the base of demand and supply. A well-functioning securities market
should be able to provide timely and accurate information on the past transactions,
liquidity, low transaction costs (internal efficiency) and securities prices that rapidly
adjusted to all available information (external efficiency).

 Primary market

Primary Market is the market for new securities issues and is facilitated by underwriting
groups. The companies sell their securities to the public directly to the investors through
the underwriters (normally investment banks for stock and bond issuance). When the firm
is issuing shares for the very first time, it is called Initial Public Offering (IPO). Issuing
company receives cash from the sale and uses it to expand or fund the operations. After
the initial sale, the securities trading will be conducted on the secondary market.

 Secondary market

Secondary market, also known as the aftermarket, is the market where the trading of the
previous issued securities is conducted. On a secondary market, an investor buys
securities from another investor instead of the issuer. It is important that the secondary
market provides liquidity and therefore provides continuous information about the market
price of the securities. Secondary markets are mainly organized in two ways. One is to
form a centralized and organized exchange where all buyers and sellers (or their
representative agents) meet and conduct trading. The other way is Over-the-counter
(OTC) market which a secondary market where securities are traded directly between two
parties. Trading occurs via dealers who carry inventories of securities and contact each
other by computer, telephone or other electronic network instead of a physical trading
floor.

History of securities market

The history of securities market began with the floatation of shares by Biratnagar Jute
Mills Ltd. and Nepal Bank Ltd. in 1937. Introduction of the Company Act in 1964, the
first issuance of Government Bond in 1964 and the establishment of Securities Exchange
Center Ltd. in 1976 were other significant development relating to capital markets.
Securities Exchange Center was established with an objective of facilitating and
promoting the growth of capital markets. Before conversion into stock exchange it was
the only capital markets institution undertaking the job of brokering, underwriting,
managing public issue, market making for government bonds and other financial
services. Nepal Government, under a program initiated to reform capital markets
converted Securities Exchange Center into Nepal Stock Exchange in 1993. The only
secondary capital market in Nepal, NEPSE operates under Securities Act, 2007. NEPSE
had brought about a number of changes in order to upgrade itself and provide efficient
and reliable services. In August 2007, it automated its trading system. Initially a not for
profit organization, NEPSE has turn itself in a profit seeking organization in May 2008.

Securities exchange board of Nepal (SEBON)

Securities Board of Nepal (SEBON) was established by the Government of Nepal on

June 7, 1993 as an apex regulator of Securities Markets. It has been regulating the market
under the Securities Act, 2006. The Governing Board of SEBON is composed of seven
members including one full time chairman appointed by the Government for tenure of
four years. Other members of the Board include joint secretary of Ministry of Finance,
joint secretary of Ministry of Law, Justice and Parliamentary Affairs, representative from
Nepal Rastra Bank, representative from Institute of Chartered Accountants of Nepal,
representative from Federation of Nepalese Chambers of Commerce and Industries, and
one member appointed by the Government from amongst the experts pertaining to
management of securities market, development of capital market, financial or economic
sector.

NEPSE

CDS
 CHAPTER III

INTRODUCTION TO SUMERU SECURITIES PVT. LTD

Background of the organization

Sumeru Securities Pvt. Ltd. is one of the leading stock broking companies and wealth
management firms headquartered at prime location of Hattisar, Kathmandu. Founded in
2067/68, it operates on unique retail focused stock trading model that provides
revolutionary trading platforms and expertise to a diversified client base. Sumeru is
licensed broker No. 39.Sumeru Securities Pvt. Ltd. is member of Nepal Stock Exchange
Limited (NEPSE) and is also a registered Depository Participant (DP) (DP no.40) with
CDS and Clearing Limited (CDSC). Sumeru Securities Pvt. Ltd. rendezvous with
excellence in customer relations has emerged as one of the most trusted and respected
stock broking companies in our domestic context. Sumeru, as the name of the company
suggests being something majestic, vows to keep its customers contented with its
superlative trustworthiness and professional pragmatism. After obtaining the Letter of
Intent from the Securities Board of Nepal (SEBON), Sumeru Securities Pvt. Ltd. set up
the necessary infrastructure and involved in availing the stock broking related services to
its valued clients by complying with the necessary conditions as specified by the
governing agency.

Vision of sumeru securities

Vision represents the place where the organization wants to be in the future. So the vision
is to provide best value for money to investors through innovative products,
trading/investment strategies, state-of- the-art technology and personalized services.
Our Motto Is “Guides Towards Prosperity”.

Mission of sumeru securities

The mission is to provide the best quality service, to have complete harmony between
quality in process and continuous improvement to deliver exceptional service to delight
our clients thereby contributing to the capital market of the country and create excellent
market growth opportunity for our employees.
Objectivities of sumeru securities

1. To reach to the general investors and provide them easy access to capital market.
2. To make share trading faster than ever by using high tech systems.
3. To provide competitive and customer oriented services to all customers through
competent and professional staffs.

Services offering by the sumeru securities

Sumeru Securities offers services catering to its customers. To sum up, Sumeru Securities
makes securities trading simple and accessible to all sections of society. Some of the
major products/services of the organization are as follows:

1. Buying and Selling of Shares(Trading)

2. Opening a Demat account
3. Dematerialization of securities
4. Re-Materialization of securities
5. Maintaining record of securities in electronic form
6. Settlement trades by transferring/receiving the securities from/in BO accounts
7. Settlement of off-market trades that is occurred between BOs outside NEPSE
8. Online Statement view of Demat Account
9. Any other as allowed by laws and regulations in regard to securities depository

Capital structure of sumeru securities

The authorized capital of stock broker in Nepal is Rs. 5 crore. Stock broker should
maintain minimum balance of Rs. 5 crore in its account. The issued capital is also Rs. 5
crore. However, the paid up capital of the Stock broker is Rs. 2,01,00,000.

Services charges of sumeru securities

There are two types of service charges by Sumeru Securities which can be broadly
categorized into stock brokerage service charges and Demat Services.
 Stock Brokerage service charges
Sumeru Securities is highly regulated, all of their service charges are fixed by the
regulatory authorities. Their brokerage services are as follows:
Table 3.1 Stock brokerage charges

SN Transaction Volume Percent of Turnover

1 Up to Rs.2500 Flat Rs. 25
2 From Rs.2501 to Rs.50000 0.60%
3 From Rs.50001 to Rs.500000 0.55%
4 From Rs.500001 to Rs.2000000 0.50%
5 From Rs.2000001 to Rs.10000000 0.45%
6 From Rs. 10000000 onward 0.40%
In addition to the above charges a fee of 0.015% regulatory fee is added to the above
transaction.

 Demat Services
The service charges of DMAT which is also fixed by the regulatory authorities are :

Table 3.2 Demat Service Charges

SN Transaction Type Rs. Per Transaction

1 Demat Account Opening Fee Rs.150
2 Demat update Rs.100 per annum
3 On market transaction at DP Rs.25 per transfer
4 Pledge/Unpledge fee Rs.50
5 Share Dematerialization Free
6 Account Statement Printing Free

Departments of sumeru securities

 Front Desk

Customer Service Department is the front desk of any organization. It provides all
necessary information to the customers. For any organization, it is the main and most
important department which needs to deal with customer more than any department in the
organization. This department fills up the different types of forms if customer asked to
fill up. Interact with the customers if they fell any problems. This department also
answers the phone calls and gives information of their queries. Helping customers to
open account and verifying all the required documents. This department is also concern
with the opening the D-mat accounts for the customers. This department gives the
statement of share to the customers.

 Trading Department

This is the most sensitive part of the organization where trading of shares takes place. .
This is the main department where employees are much busy and cannot procrastinate
any work and also have to attend calls and individual. This department is mainly
concerned with the trading activities of the organization which involves buying and
selling of securities in the secondary market. It takes the order of the client and place that
order in the market depth. The matching of the orders in the market leads to the execution
of the order. This department has to work as per the instruction provided by the clients
and make the trade as per the order filed.

 DP Department

The DPs are intermediaries between the CD and account holders. Here all the Demat
account is managed and those account opened at the front desk needs approval from this
department. The department looks after the Dematerialization of the share certificates.
Depository Participant is an important party in the CDSC which is responsible to provide
the Dmat services, opening Dmat accounts, collection of bonus, dividend, right shares
provided by issuer to its client in clients respective account through the stockbroker,
capital market (DP).

 Account Department

Account department at Sumeru securities Pvt.Ltd is responsible for carrying out the
finance related activities. It involves the collection of cash and check from the clients,
managing the funds, making the payment to stock, paying out the cash and check to the
clients, keeping the records of all the financial and accounting activities of an
organization, etc.
 CHAPTER IV

ANALYSIS OF ACTIVITIES DONR AND PROBLEM SOLVED

This part includes various task performed during the internship at the stock broker.
Sumeru Securities provides a wide range of services to its clients. I did work in almost all
departments and gained knowledge from it. The internship work that the intern performed
can be called as a mix of general as well as specific tasks. General tasks that the intern
performed were normal day to day tasks assigned to any intern. The intern also got a
specific task assigned to him as well which was to work under different departments in
different time periods.

Customer service department

It is one of the busiest departments and it is the very place which makes an early
impression to the clients. The image and reputation of the organization depends upon
effective functioning of this department. It is the first place where the customers first get
the service. I was allowed to carry out all the work after a training given of using the
software. I deal with different activities for next two weeks such as:

 Updated KYC details into BOSS

The intern was given the task to update the KYC forms into the BOSS (Broker Office
Solution Software) where the client’s details were managed by the system. The system
helped to manage the information that is required to manage in the broker organization.

 Handled Clients
The intern interacted with the new clients who came to open a trading account and Demat
account. The clients needed to have their KYC forms filled with correct details according
to their citizenship and bank account details. The forms were accepted by the intern after
checking the forms for the correct details. The intern would instruct the clients process of
trading of the shares and help them to fill the KYC forms.

 Provided Statements
The clients asked for the statements of their purchases/sales of the shares and the Demat
account statement at the Customer Service Department. The intern helped the current
employees at front desk and also provided the statements in their absence.
 Helped in Dematerialization of shares
The clients come with their shares certificates to dematerialize them through Sumeru
Securities. The front desk accepts them and forwards them to the DP Department. The
intern used to instruct the clients who needed instructions to fill the forms for
dematerialization of shares.

Trading department

This department is responsible for actual purchase and sales of securities as per demand
of customers. This department facilitates purchase, sales, calculation of capital gain tax,
and creation of client KYC ID. Every client receives their unique code for trading which
is called NEPSE code. The client has to place their order for buying or selling their shares
through the order form provided by the broker. The employee then places the order to the
NEPSE Automated Trading System where the system matches the order. The order is
matched when there is a buyer for the shares at the rate and quantity determined by the
seller.

The activities that the intern performed at the department were very less in this
department. The intern could observe the activities performed in the department as he
was not authorized to use the system. The details entered were double checked while
entering as any mistake occurred could not be reversed and could result in problems. The
respective employee have to get orders for the clients and post it in the order list of
NEPSE to carry out the transaction, they also need to generate a particular customer
code(NEPSE code) for carrying out transaction. They also had to look after the Debit
Instruction Slip (DIS) Cheque which is received from the client who sells the shares.This
department is headed by Mr. Jeeban Prasai.

DP department

The DPs are intermediaries between the CD and account holders. Here all the Demat
account is managed and those account opened at the front desk needs approval from this
department. It is also liable to make letter for dematerialization of shares generally called
DRN (Dematerialization Reference Number). The first step for an investor is to open a
DMAT account. In order to dematerialize physical securities, investors must fill in a
DMAT Request Form (DRF), available with the DP and submit the same along with
physical certificates. As every security has an ISIN (International Securities Identification
Number), a separate DRF must be filled for each ISIN.

The investor has to follow certain steps to DMAT the securities in the physical form. The
investor need to provide their BO ID (Beneficiary Owner ID) to the broker to do trading
in the dematerialized form where the broker will map the client’s shares to the client’s
dmat account. When the client buys the shares then their shares are mapped to the client’s
dmat account and once the client makes payment for the share their account is credited
with the shares. When the client sells their shares then they need to provide the DIS
(Debit Instruction Slip) to the depository participant for the settlement of their shares.
The client’s demat account will get debited after the settlement of the transaction. The
intern was given the task to make the DRF from the system and manage them
accordingly. Also, the intern managed the DIS at the department.

Account department

The accounts department takes payments from the clients for the purchase and gives
payment to the client for the sale of their shares. The accounts department looks after the
transactions that are taken place in the organization. The share trading has a unique
accounting process where the settlement is done on the 3 rd day of the transaction. The
accounts department issues the bill of purchase of securities after the trading hour of the
transaction. The client has to pay the amount of bill which includes the share amount,
SEBON commission, broker commission and DP fee. The bill of sales of securities is
issued after the settlement of securities. The client receives the payment of their securities
after deducting the SEBON commission, broker commission, DP fee and Capital gain
tax. All the transactions are done from A/C payee cheque.
In the accounts department, the intern got the idea of the accounting of share transactions.
The intern was not given the job to operate the system in the department but the intern
could observe all the activities in the department while arranging the vouchers, bills and
some documents in the departments.
Problem faced

The intern faced different types of problems in the organization while performing the
activities in the firm. They are as follows:

1. Though the instruction and required documents are easy to fill out, even then
customers ask those for time to time and reasons for documents. So, it was tough to
give them each guideline on filling different types of form as well.
2. Some the customer disagreed to accept the charges for account renewals and make
argument on this matter for long time. So, it becomes difficult to convince them about
the charges.
3. Dealing with the clients was the most difficult part in the organization. The clients try
to get smart while dealing with the interns and others as well to get their job done. It
was also necessary to give information about the trading to the new clients where the
intern did not have any space to make any mistake.
4. The client must be self-present while opening a Demat A/C with Sumeru Securities as
per the rules. The intern had the job of accepting the account opening forms, here the
intern faced the problems where the clients were not present and they tried to become
smart with me in the beginning as the intern knew very less about dealing with such
clients
Problem solved
All employees perform their duties and responsibility in the organization most of the
time. Though I didn’t had the authority to be involved in many financial activities in the
organization but a simple helps the senior staffs to save their time as well as effort.
1. The intern was also given the task to organize the KYC forms and demat forms. The
forms were arranged in unsystematic manner before. We tried to make a better file
system for files by getting the information filled in excel sheet first and then arrange
them in the index file in groups. In that way, any KYC form could be found within 2
minutes whenever asked by the authority and senior staff.
2. Sometimes as an intern I gave wrong information to the client due to lack of
knowledge of that department in the beginning. At that time, senior staff immediately
corrected our mistake and gave the right information. As the intern had done a
mistake once I did not repeat the mistake again (own).
Felt or observed gap

Internship program in Sumeru’s different department was very interesting and internee
enjoyed working in that environment. During the period of my internship he can observed
lots of things some was very good and something need to be changed. The gaps between
theoretical and practical knowledge of the student about Brokerage firm are as follows.
1. Students study about the different departments of brokerage firm but in real all the
departments might not be in the firm.
2. In theory the different facilities provided by the institution is studied but all the
institutions cannot provide all the facilities to its customers.
3. In theoretical knowledge student only get a chance to know out surface but in
practical student gets the chance to know the organization entirely.
4. While studying student knows only the problem of organization in written but while
facing the problem in work and do the solution of that problem was the practical
work.
5. The applicability and usefulness of business education to real-life business can be
known from the practical knowledge.
 CHAPTER V

CONCLUSION AND LESSON LEARNT

CONCLUSION

This internship program was conducted as a partial fulfillment of the BBA Course under
Tribhuvan University which provides student an opportunity to familiarize with
organizational culture and develop managerial skills exposing oneself of the real-life
functions of the business organization. The internship period is an exciting phase of a
student’s life. It is not just a requirement to pass one’s exams and get a degree, but it is a
period where one builds professional contacts, learns the art of listening and observing.
Such kind of program helps the students to broaden their horizons and actually put
whatever they have learnt into practice. It provides the students with extra knowledge and
would prepare them to face the real work environment after graduation. It helps in
making the students more competent in today’s competitive workplace. Moreover, it
helps in developing the necessary skills required to cope with various kinds of work
problems.

I was always curious to know how share market function and luckily I got chance to be
intern in one of the leading share broker i.e. Sumeru Securities where I got to know more
and more about how the share market operates and how the trading is done. It was a great
experience being an intern in Sumeru. I have more knowledge and information regarding
secondary market. The nine weeks of internship program has been very fruitful. Almost
all my objectives of doing internship was fulfilled and achieved. It helped me gain
tremendous knowledge and experience with different departments. The internship added
sense of responsibility to me while performing any task. The experience of internship was
incredible which boosted my confidence level and enhanced my inter-personal
communication skills. It developed interaction skills and shaped up my personality too. I
learnt about various aspects of share market, socializing with the staffs and customers,
forming networks, dealing with the senior staffs, getting out of difficult situations,
dealing with the intern colleagues, and patiently solving the problems faced in the
workplace. Customer satisfaction is the key to retain the customers in the organization.
Lesson learnt

The eight weeks internship program was definitely not sufficient to understand the vast
organizational work procedures and system but it was effective enough to learn the
importance of the proper organization cultures and its effect on the professional working
environment. This internship not only gave an opportunity to learn about basic activities
of the various departments that I worked in but also helped me to shape my personality
and character to greater extent. The internee achievement from internship can be listed
out in the following:

Developed communication Skills

Communication is the key to interact with people and be successful in life. My first
objective was to improve my communication skill which I did successfully. CSD is one
of the departments where we have to face many customers each day. I learned to
communicate and deal with the customers having different perception anh learned hoe to
be gentle with them.
Time Management Skills

As we all know that“time and tide waits for none”. So it is us who have to move as per
time. Time management is must for professional to have balance between personal and
professional life. Keeping our self-busy, contended and punctual is what I learnt through
my eight weeks long internship program.
Improved interpersonal Skills

I had the opportunity to interact with a lot of customers which helped me in improving
my interpersonal skills, situational changes, decision making medium and understanding
customer- service provider relationship. I had to collaborate with other all employees
both senior and peers to perform tasks in groups which taught me the proper workplace
behavior to adopt.
Changed attitude and behavior

Employee must possess highly positive attitude, multitasking ability, and patience
behavior. Courtesy and responsiveness are equally important traits in an employee. I felt
how the behavior of an employee can influence the way a customer reacts and gets his
work done. I learnt to be more polite and patience during those periods.
Team Work

Working in team, makes every difficult task easy. I was assisted by seniors and
collaborated with my colleagues. Everybody was eager to teach me how the system
operates and how to simplify the task. It was a wonderful team work there.
Networking

I came along a lot of people there of different nature. Many of them were so friendly and
cooperative and fun to interact with. I develop a good relation with my team members
and seniors as well as some of clients. I got to meet a lot of new and energetic people
who even promised to provide training over how the share market operates and doing
investment in it.

Recommendation to the organization

The internship program gave an opportunity to explore the corporate environment. After
having great working experience as an intern in Sumeru Securities and observing its
working environment and procedures, I found Sumeru has its excellent working system.
At the same time some area of improvement has been identified. The major feedbacks for
enhancing its performance are:
1. For the effective management of interns, there should be a proper placement schedule
for each intern in terms of the duration and departments they will work in with some
kind of small orientation program about the working policy of organization.
2. The performance of the interns should be monitored and evaluated and job
opportunities can be offered to the best intern so that interns could actually learn
something important during the internship period and thus take internship period as
an opportunity rather than partial fulfillment of the course.
3. The software called BOSS did not respond sometimes and the customers have to wait
for balance inquiry.
4. Most of the staffs are of Newari background and they communicate in their own
language which made other staffs difficult to understand. So all staffs must
communicate with common language so all can easily understand.
5. The working space is small and work load is more. So the organization must increase
the working area or shift the location to a better place.