A study on Financial Product

Equity and derivatives

User

A study on
Financial Product Equity and derivatives
Submitted to: Mr.Vivek Raina
Submitted by: Sanwarmal Saran
3 August 2015

DECLARATION

I undersigned SANWARMAL SARAN. A student of PGP-GBM SEM-2 declares that I have

prepared this project report on A study on Financial Product Equity and derivatives Under
guidance of MR. BHAVIN DHOLKIA.

Signature

Sanwarmal Saran

Acknowledgement
As any good work is incomplete without acknowledging the people who made itpossible, this
report is incomplete without thanking the people without whom this project wouldn't have
taken shape.
This project is a result of continuous cooperation, effective guidance and support from all the
people associated with this project.
I am indebted to him for clarifying our concepts by sharing his valued experience in teaching,
and training which have thereby become an unconscious part of our ideas and thoughts while
analysing the brokerage industry. I am also immensely indebted to my faculty mentor Prof.
Vivek Raina, for his illumining observation, encouraging suggestions and constructive
criticisms, which have helped me in completing this project successfully. I am also
immensely indebted to my project guide in the company Mr. Bhavin Dholkia (Branch
Manager) Marwdi Share and finance limited. I take this opportunity to thank all those who
have directly and indirectly inspired, directed and helped me towards successful completion
of this project report.
Lastly I would like to thank my family members and friends for their continuing support,
blessings and encouragement.

Sanwarmal Saran

PREFACE
Summer Training is the bridge for a student that takes him from his theoretical Knowledge
world to practical industry world. The main purpose of work in corporate is to expos for
industrial and business environment, which cannot be possible in the classroom.
The advantages of this sort of integration, which promotes guided to corporate culture,
functional, social and norms along with formal teaching are numerous.

To bridge the gap between theory and practical.

To install the feeling of belongingness and acceptance.
To help the student to develop the better understanding of the concept and questions
already raised or to be raised subsequently during their SIP period.

The present report gives a detailed view of the A study on Financial Product Equity and
derivatives The Project is definitely going to play an important role in developing an
aptitude for hardself-confidence.

Table of Content
4

Sr. No

Particular

Page No.

1. Brief of Industry
1.1 Introduction of stock market...........................................................08
1.2 Stock exchange in India...................................................................08
1.3 List of stock exchange in India........................................................09
1.4 Structure of Indian stock exchange..................................................09
1.5 Bombay Stock Exchange..................................................................09
1.6 National Stock Exchange.................................................................10
1.7 Stock broking firm...........................................................................11
1.8 Top stock broking firms in India......................................................11
1.9 Insurance in India.............................................................................12
1.9.1

History of Insurance in India......................................................12

2 Company Overview (Marwadi Shares and Finance Ltd.)

2.1 Company detail...15
2.2 History........16
2.3 Marwadi story....19
2.4 Company philosophy......20
2.5 Mission &vision......21
2.6 Milestones...........22
2.7 Organisation structure ....23
2.8 Branches...24
2.9 Highlights.25
2.10 Company information.....26
2.11 Board of directors...27
2.12 Time keeping system & membership.28
2.13 Mambership.29

3 Data Analysis
3.1 Data Analysis of personal Information31
3.2 Data Analysis of Questions...34
5

4 Task/Targets assigned /Achievements

4.1 Expiration learning..36
4.2 SIP learning..36-40

5 Project Data
5.1 Scope of the project............................................................................42
5.2 Task expectation from the corporate mentor.....................................42
5.3 Activity performed.............................................................................42
5.4 Experiential learning..........................................................................43
5.5 Achievement......................................................................................44
5.6 Failures...............................................................................................44

6 Findings & conclusion

6.1 Findings46
6.2 Conclusion....47

7 Bibliography
7.1 Name of the refers Book..50
7.2 Name of the Website . 50

Chapter 1 Brief on industry

1. Brief on Industry
1.1 Introduction of stock market:
A stock market or equity market is a public entity (a loose network of economic transactions,
not a physical facility or discrete entity) for the trading of company stock (shares) and
derivatives at an agreed price; these are securities listed on a stock as well as those only
traded privately.
The size of the world stock market was estimated at about $36.6 trillion at the beginning of
October 2008. The total world derivatives market has been estimated at about $791 trillion
face or nominal value, 11 times the size of the entire world economy. The value of the
derivatives market, because it is stated in terms of notional values, cannot be directly
compared to a stock or a fixed income security, which traditionally refers to an actual value.
Moreover, the vast majority of derivatives 'cancel' each other out (i.e., a derivative 'bet' on an
event occurring is offset by a comparable derivative 'bet' on the event not occurring). Many
such relatively illiquid securities are valued as marked to model, rather than an actual market
price.
The stocks are listed and traded on stock exchanges which are entities of a corporation or
mutual organization specialized in the business of bringing buyers and sellers of the
organizations to a listing of stocks and securities together. The largest stock market in the
United States, by market capitalization, is the New York Stock Exchange (NYSE). In Canada,
the largest stock market is the Toronto Stock Exchange. Major European examples of stock
exchanges include the Amsterdam Stock Exchange, London Stock Exchange, Paris Bourse,
and the Deutsche Bores (Frankfurt Stock Exchange). In Africa, examples include Nigerian
Stock Exchange, JSE Limited, etc. Asian examples include the Philippine Stock Exchange,
the Singapore Exchange, the Tokyo Stock Exchange, the Hong Kong Stock Exchange, the
Shanghai Stock Exchange, and the Bombay Stock Exchange. In Latin America, there are such
exchanges as the BM&F Bovespa and the BMV. Australia has a national stock exchange, the
Australian Securities Exchange, due to the size of its population.
Market participants include individual retail investors, institutional investors such as mutual
funds, banks, insurance companies and hedge funds, and also publicly traded corporations
trading in their own shares. Some studies have suggested that institutional investors and
corporations trading in their own shares generally receive higher risk-adjusted returns than
retail investors. [1]

1.2Stock Exchange in India

A stock exchange can be defined as a centralized market for buying and selling stocks where
the price is determined through supply-demand mechanism.
There are 23 stock exchanges in the India. Mumbai's (earlier known as Bombay), Bombay
Stock Exchange is the largest, with over 6,000 stocks listed. The BSE accounts for over two
thirds of the total trading volume in the country. Established in 1875, the exchange is also the
oldest in Asia. Among the twenty-two Stock Exchanges recognized by the Government of
India under the Securities Contracts (Regulation) Act, 1956, it was the first one to be
recognized and it is the only one that had the privilege of getting permanent recognition absinitio. [2]

1.3 List of Stock Exchanges in India

Bombay stock exchange
National stock exchange(Mumbai)
Banglore stock exchange
Utter pradesh stock exchange(kanpur)
Magadh stock exchange(Patna)
Ahmedabad stock exchange
vadodara stock exchange(Baroda)
Bhubaneswar stock exchange
Calcutta stock exchange(kolkata)
madras stock exchange
Cochin stock exchange
coimbatore stock exchange
Gauhati stock exchange
Hydrabad stock exchange
Madhya pradesh stock exchange(indore)
Jaipur stock exchange
Ludhina stock exchange
Mangalore stock exchange
Pune stock exchange
Saurashtrakutch stock exchange [3]

1.5 Bombay Stock Exchange

Bombay Stock Exchange, commonly referred to as the BSE, (Bombay Share Bazaar) is a
stock exchange located on Dalal Street, Mumbai, Maharashtra, India. It is the 10th largest
stock exchange in the world by market capitalisation. Established in 1875, BSE Ltd.
(formerly known as Bombay Stock Exchange Ltd.), is Asias first Stock Exchange and one of
Indias leading exchange groups. Over the past 137 years, BSE has facilitated the growth of
the Indian corporate sector by providing it an efficient capital-raising platform. Popularly
known as BSE, the bourse was established as "The Native Share & Stock Brokers'
Association" in 1875.
BSE is a corporatized and demutualised entity, with a broad shareholder-base which includes
two leading global exchanges, Deutsche Bourse and Singapore Exchange as strategic
partners. BSE provides an efficient and transparent market for trading in equity, debt
instruments, derivatives, mutual funds. It also has a platform for trading in equities of smalland-medium enterprises (SME). Around 5000 companies are listed on BSE making it world's
No. 1 exchange in terms of listed members. The companies listed on BSE Ltd command a
total market capitalisation of USD Trillion 1.2 as of 31 October 2012. BSE Ltd is world's
fifth most active exchange in terms of number of transactions handled through its electronic
trading system. It is also one of the worlds leading exchanges (3rd largest in July 2012) for
Index options trading (Source: World Federation of Exchanges).

BSE also provides a host of other services to capital market participants including risk
management, clearing, settlement, market data services and education. It has a global reach
with customers around the world and a nation-wide presence. BSE systems and processes are
designed to safeguard market integrity, drive the growth of the Indian capital market and
stimulate innovation and competition across all market segments. BSE is the first exchange in
India and second in the world to obtain an ISO 9001:2000 certification. It is also the first
Exchange in the country and second in the world to receive Information Security
Management System Standard BS 7799-2-2002 certification for its On-Line trading System
(BOLT). It operates one of the most respected capital market educational institutes in the
country (the BSE Institute Ltd.). BSE also provides depository services through its Central
Depository Services Ltd. (CDSL) arm.
BSEs popular equity index - the S&P BSE SENSEX [Formerly SENSEX] - is India's most
widely tracked stock market benchmark index. It is traded internationally on the EUREX as
well as leading exchanges of the BRCS nations (Brazil, Russia, China and South Africa). On
Tuesday, 19 February 2013 BSE has entered into Strategic Partnership with S&P DOW
JONES INDICES and the SENSEX has been renamed as "S&P BSE SENSEX".

1.6 National Stock Exchange (NSE)

The National Stock Exchange (NSE) is stock exchange located at Mumbai, India. It is the
11th largest stock exchange in the world by market capitalisation and largest in India by daily
turnover and number of trades, for both equities and derivative trading. NSE has a market
capitalisation of around US$1 trillion and over 1,652 listings as of July 2012. Though a
number of other exchanges exist, NSE and the Bombay Stock Exchange are the two most
significant stock exchanges in India and between them are responsible for the vast majority of
share transactions. The NSE's key index is the S&P CNX Nifty, known as the NSE NIFTY
(National Stock Exchange Fifty), an index of fifty major stocks weighted by market
capitalisation.
NSE is mutually owned by a set of leading financial institutions, banks, insurance companies
and other financial intermediaries in India but its ownership and management operate as
separate entities. There are at least 2 foreign investors NYSE Euro next and Goldman Sachs
who have taken a stake in the NSE. As of 2006, the NSE VSAT terminals, 2799 in total,
cover more than 1500 cities across India. In 2011, NSE was the third largest stock exchange
in the world in terms of the number of contracts (1221 million) traded in equity derivatives. It
is the second fastest growing stock exchange in the world with a recorded growth of 16.6%.
[5]

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 NSE Group:
1. India Index Services & Products Ltd (IISL).
2. National Securities Clearing Corporation Ltd (NSCCL).
3. NSE.IT Ltd.
4. National Securities Depository Ltd (NSDL).
5. DotEx International Limited.
Nifty indicates NSE .It is the leading index for large companies the National Stock Exchange
of India. It consists of 50 companies representing 24 sectors of the economy. Nifty represents
approximately 47% of the traded value of all stocks on the National Stock exchange. It is
calculated using base year 1995 & base index value 1000.

1.7 Stock Broking 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 so
doing 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 stock prices and quotes. [6]

1.8 Top Stock Broking Firms in India

1) Kotak Securities Ltd.
2) Share Khan Ltd.
3) Angel Broking Ltd.
4) IndiaInfiline Ltd.
5) Indiabulls
6) Reliance Money
7) ICICI Direct
8) Motilal Oswal Securities
9) Karvy Stock Broking
10) Religare
11) HDFC Securities
12) Anand Rathi Securities Ltd
13) Geojit BNP Paribas

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1.9 Insurance in India:

Insurance is a subject listed in the Union list in the Seventh Schedule to the Constitution of
India where only centre can legislate. The insurance sector has gone through a number of
phases by allowing private companies to solicit insurance and also allowing foreign direct
investment of up to 26% earlier and 49% from 2012, the insurance sector has been a booming
market. However, the largest life-insurance company in India is still owned by the
government. [7]

1.9.1 History of insurance in India

In India, insurance has a deep-rooted history. It finds mention in the writings of Manu
( Manusmrithi ), Yagnavalkya (Dharmasastra ) and Kautilya ( Arthasastra ). The writings talk
in terms of pooling of resources that could be re-distributed in times of calamities such as
fire, floods, epidemics and famine. This was probably a pre-cursor to modern day insurance.
Ancient Indian history has preserved the earliest traces of insurance in the form of marine
trade loans and carriers contracts. Insurance in India has evolved over time heavily drawing
from other countries, England in particular.
1818 saw the advent of life insurance business in India with the establishment of the Oriental
Life Insurance Company in Calcutta. This Company however failed in 1834. In 1829, the
Madras Equitable had begun transacting life insurance business in the Madras Presidency.
1870 saw the enactment of the British Insurance Act and in the last three decades of the
nineteenth century, the Bombay Mutual (1871), Oriental (1874) and Empire of India (1897)
were started in the Bombay Residency. This era, however, was dominated by foreign
insurance offices which did good business in India, namely Albert Life Assurance, Royal
Insurance, Liverpool and London Globe Insurance and the Indian offices were up for hard
competition from the foreign companies.
In 1914, the Government of India started publishing returns of Insurance Companies in India.
The Indian Life Assurance Companies Act, 1912 was the first statutory measure to regulate
life business. In 1928, the Indian Insurance Companies Act was enacted to enable the
Government to collect statistical information about both life and non-life business transacted
in India by Indian and foreign insurers including provident insurance societies. In 1938, with
a view to protecting the interest of the Insurance public, the earlier legislation was
consolidated and amended by the Insurance Act, 1938 with comprehensive provisions for
effective control over the activities of insurers.
The Insurance Amendment Act of 1950 abolished Principal Agencies. However, there were a
large number of insurance companies and the level of competition was high. There were also
allegations of unfair trade practices. The Government of India, therefore, decided to
nationalize insurance business.
An Ordinance was issued on 19th January, 1956 nationalising the Life Insurance sector and
Life Insurance Corporation came into existence in the same year. The LIC absorbed 154
Indian, 16 non-Indian insurers as also 75 provident societies245 Indian and foreign
insurers in all. The LIC had monopoly till the late 90s when the Insurance sector was
reopened to the private sector.
The history of general insurance dates back to the Industrial Revolution in the west and the
consequent growth of sea-faring trade and commerce in the 17th century. It came to India as a
legacy of British occupation. General Insurance in India has its roots in the establishment of
Triton Insurance Company Ltd., in the year 1850 in Calcutta by the British. In 1907, the
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Indian Mercantile Insurance Ltd, was set up. This was the first company to transact all classes
of general insurance business.1957 saw the formation of the General Insurance Council, a
wing of the Insurance Association of India. The General Insurance Council framed a code of
conduct for ensuring fair conduct and sound business practices. In 1968, the Insurance Act
was amended to regulate investments and set minimum solvency margins. The Tariff
Advisory Committee was also set up then. In 1972 with the passing of the General Insurance
Business (Nationalisation) Act, general insurance business was nationalized with effect from
1st January, 1973. 107 insurers were amalgamated and grouped into four companies, namely
National Insurance Company Ltd., the New India Assurance Company Ltd., the Oriental
Insurance Company Ltd and the United India Insurance Company Ltd. The General Insurance
Corporation of India was incorporated as a company in 1971 and it commence business on
January 1sst 1973.
The insurance sector is a colossal one and is growing at a speedy rate of 15-20%. Together
with banking services, insurance services add about 7% to the countrys GDP. A welldeveloped and evolved insurance sector is a boon for economic development as it provides
long- term funds for infrastructure development at the same time strengthening the risk taking
ability of the country. [8]

13

Chapter-2 Overview of company

14

2.1-COMPANY DETAIL
Marwadi Group is a widely renowned financial services group in Saurashtra. It had its
genesis in the year 1992 with the incorporation of Marwadi Shares & Finance Pvt. Ltd.
(MSFPL). In the year 1996, it became a corporate member of National Stock Exchange of
India Ltd. (popularly known as NSE), which was then an untested platform for securities
trading. MSFPLs perspicacity had it that in future this new platform which was highly
leveraged on technology would be the main liquidity purveyor in securities business.
Marwadi Groups Vision now stands proven with NSE now at the commanding heights of
Indian securities market.
Marwadi Group therefore has an established history of making the right move in an intuitive
manner. Later in the year 1999, MSFPL became a Depository Participant of National
Securities Depository Ltd. (NSDL) which was the first Depository launched in Saurashtra
after Depositories Act was legislated in the year 1997. In deciding to become a DP, what
guided was once again MSFPL intuitive feel for what the future would unfold, when skeptics
stood apart, MSFPL took the plunge and brought the depository services to retail investors
door-step in Saurashtra, bringing into MSFPL fold a retail mass of 60,000 plus customers.
Marwadi Group is driven by its three founder directors Shri. Ketan Marwadi, a Civil
Engineer by profession and the major brain behind Marwadi Group, Shri Deven Marwadi an
expert at risk management systems and Shri Sandeep Marwadi who is guiding the technology
and systems in the Company. Having started out on sound principles of proprietary enterprise
and laid a robust foundation in terms of financial and network, the promoters have now
handed over the reins to professional mangers. The three promoter-directors now lay out the
broad policy framework and future growth strategy for the group. Day-to-day management is
vested in professional managers, who are invested with both authority and accountability.
Today MSFPL have a corpus of managers who handle their respective departments and
follow a systemic feedback of inputs to the higher management, which then improves upon
the existing practices and standards.

2.2 HISTORY

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Indian Stock Markets are one of the oldest in Asia. Its history dates back to nearly 200 years
ago. The earliest records of security dealings in India are meager and obscure.
By 1830's business on corporate stocks and shares in Bank and Cotton presses took place in
Bombay. Though the trading list was broader in 1839, there were only half a dozen brokers
16

recognized by banks and merchants during 1840 and 1850. The 1850's witnessed a rapid
development of commercial enterprise and brokerage business attracted many men into the
field and by 1860 the number of brokers increased into 60.
In 1860-61 the American Civil War broke out and cotton supply from United States of Europe
was stopped; thus, the 'Share Mania' in India begun. The number of brokers increased to
about 200 to 250. However, at the end of the American Civil War, in 1865, a disastrous slump
began (for example, Bank of Bombay Share which had touched Rs 2850 could only be sold at
Rs. 87). At the end of the American Civil War, the brokers who thrived out of Civil War in
1874, found a place in a street (now appropriately called as Dalal Street) where they would
conveniently assemble and transact business.
In 1887, they formally established in Bombay, the "Native Share and Stock Brokers'
Association" (which is alternatively known as "The Stock Exchange"). In 1895, the Stock
Exchange acquired a premise in the same street and it was inaugurated in 1899. Thus, the
Stock Exchange at Bombay was consolidated.
Thus in the same way, gradually with the passage of time number of exchanges were
increased and at currently it reached to the figure of 24 stock exchanges.
An important early event in the development of the stock market in India was the formation
of the Native Share and Stock Brokers Association at Bombay in 1875, the precursor of the
present-day Bombay Stock Exchange. This was followed by the formation of associations
/exchanges in Ahmedabad (1894), Calcutta (1908), and Madras (1937). In addition, a large
number of ephemeral exchanges emerged mainly in buoyant periods to recede into oblivion
during depressing times subsequently.
In order to check such aberrations and promote a more orderly development of the stock
market, the central government introduced a legislation called the Securities Contracts
(Regulation) Act, 1956. Under this legislation, it is mandatory on the part of a stock exchange
to seek government recognition. As of January 2002 there were 23 stock exchanges
recognized by the central Government. They are located at Ahmedabad, Bangalore, Baroda,
Bhubaneswar, Calcutta, Chennai,(the Madras stock Exchanges ), Cochin, Coimbatore, Delhi,
Guwahati, Hyderabad, Indore, Jaipur, Kanpur, Ludhiana, Mangalore, Mumbai(the National
Stock Exchange or NSE), Mumbai (The Stock Exchange), popularly called the Bombay
Stock Exchange, Mumbai (OTC Exchange of India), Mumbai (The Inter-connected Stock
Exchange of India), Patna, Pune, and Rajkot. Of course, the principle bourses are the
17

National Stock Exchange and The Bombay Stock Exchange, accounting for the bulk of the
business done on the Indian stock market.
While the recognized stock exchanges have been accorded a privileged position, they are
subject to governmental supervision and control. The rules of a recognized stock exchanges
relating to the managerial powers of the governing body, admission, suspension, expulsion,
and re-admission of its members, appointment of authorized representatives and clerks, so on
and so forth have to be approved by the government. These rules can be amended, varied or
rescinded only with the prior approval of the government. The Securities Contracts
(Regulation) Act vests the government with the power to make enquiries into the affairs of a
recognized stock exchange and its business, withdraw the recognition the task of regulating
the stock exchange to the Securities Exchanges Board of India .

2.3-MARWADI STORY
Marwadi is a Gujarat based financial service group dealing in equities/commodities broking
and portfolio management services. In the last 15 years we have grown into a network of
more than 47 branches with 650+ committed professional people and 475+ channel partners
across India. MARWADI has kept the faith of over 1.35 lakh investors and its growing. After
establishing supremacy in Gujarat:

18

We are now expending National wide and to fuel our growth plans, we recently

raised

capital from U.K. - based investment companies.

Gujarati-Marwadi

Ketan

Marwadi

Sandeep
Marwadi
(Managing Director)
(Whole Time Director)
Gujarati by birth: Marwadi by surname they have got the best of both cultures. An
entrepreneurial streak: a never- say-die spirit: a deep sense of brotherhood and all too wellknown sharp money senses drive our business.

2.4-COMPANY PHILOSOPHY
TRADITIONAL IN VALUES: NOT IN BUSINESS
What makes Marwadi Group different from any other broking firm is our ability to borrow
from the wisdom and values of our past while keeping an eagle eye on the future. This is why
u will find the latest in processes: infrastructure, and technology bundled together is served
you at your doorstep: but more than that you will find a personal touch. While we value your
money (trust us we will do everything to make it grow). But we value your relationship more.
All our clients feel at home while trading with us, knowing fully well that there financial
aspiration is being handled with care. We hope you will let us have the honors of serving you
soon.
19

2.5-MISSION & VISION

20

"To be a

world-class

financial

services

provider

by
arranging

all conceivable financial services under one-roof at affordable costs through cost effective
delivery systems, and achieve organic growth in business by adding newer lines of business.

21

2.6-MILESTONES
The company crossed the following milestones to reach its present position as the leading
retail broking house in India

1992...Marwadi Shares And Finance Pvt. Ltd. was incorporated.

1996...Became a corporate member of National Stock Exchange Of India - (NSE)
1998...Became a member of Saurashtra Kutch Stock Exchange (SKSE)
1999...Launched Depository services of Depository Participant under National
Depository Security Ltd. (NSDL)
2000...Commenced Derivative Trading after obtaining registration as Clearing and
Trading Member in NSE.
2003... (MCBPL) Became a corporate member of the National Commodity and
Derivatives Exchange of India Ltd.
2003... (MCBPL) Became a corporate member of The Multi Commodity Exchange of
India Ltd.
2004...Became a corporate member of Bombay Stock Exchange Ltd. (BSE)
2004...Launched Depository Services of Depository Participant under Central
Depository Services (India) Ltd.
2005...Launched Portfolio Management Services
2006...MSFPL converted to Public Limited (Marwadi Shares And Finance Limited)
2007The Company raised further private equity from Caledonia Investment plc.

22

2.7-ORGANISATIONAL STRUCTURE
MANAGING DIRECTOR
DIRECTORS
CHIEF EXECUTIVE OFFICER
DEPUTY GENERAL MANAGER
SENIOR MANAGERS
MANAGERS
ASSISTANT MANAGERS
SENIOR OFFICERS
SENIOR EXECUTIVES
CLERKS
Thus, like any other formal organization Marwadi Shares & Finance Limited follows a
professionalized organizational structure than a hotchpotch structure, in which there is no
clear idea about the hierarchy patterned followed .

2.8-BRANCHES
There are Mainly 52 branches of Marwadi in different cities like..
Ahmedabad
Amreli
Anand
Baroda
Bhavnagar
Bhuj
Delhi
Dhoraji
Dhangadhra

Jamnagar
Junagadh
Keshod
Manavadar
Mithapur
Mumbai
Okha
Porbandar
Surat
23

Gondal
Gandhidham

Surendranagar
Veraval

Ankleshwar

Jetpur

Barmer

Khambhaliya

Bharuch

Kodinar

Disha

Kolhapur

Hyderabad

Kolkata

Indore

Mahuva

Jamshedpur

Manavadar

Mandvi

Morbi

Mangrol

Nadiad

Mehsana

Nasik

Navsari

Okha

Palanpur

Pune

Savarkundla

Una

Unjha

Valsad

Vapi

Ranavav

2.9-HIGHLIGHTS OF MARWADI GROUP:

MSFPL is among the top 25-broking houses of India, because of its focus on the fastgrowing retail brokerage segment.
MSFPL has a wide reach with a network of 48 branches, 400 sub-brokers who
together services 75,000 plus trading customers and 1000 plus commodity customers.
MSFPL wide client base gives an excellent opportunity to cross-see third party
products such as Mutual Fund, and Insurance.
In the Insurance Sector, we have major presence in Saurashtra as exclusive Corporate
Agents of TATA-AIG both for life and non-life business.
MSFPL have a reputation for being first movers in adoption new products and putting
it to the customers.
24

 MSFPL have robust risk management system, which is proven by the fact of very low
recoverable outstanding at any point of time.
MSFPL service delivery systems are leveraged by technology and therefore MSFPL
have established global reach at optimal cost. MSFPL recognize that the ultimate in
bottom line is the efficiency of delivery system. It is therefore MSFPL motto to
continuously upgrade delivery systems through state-of-art technology.
In the heart of Rajkot city MSFPL have 10,000 sq. ft. of built-up area in which
MSFPL have housed latest state of the art artifacts and gadgets for communication
and networking. MSFPL have 300 plus computers in this building running on the
back bone of leased data circuit lines, ISDN lines and V-sat in order to facilitate
delivery of MSFPL products to remote location customers on real-time basis .
MSFPL have made foray into commodities trading, as is the wont of the Marwadi
group, in this business. True to MSFPL motto, as on day, MSFPL are clocking a daily
trading volume of Rs. 50 Crore, by just having taken it to Saurashtra region only.
MSFPL are gradually penetrating the market outside Saurashtra in commodities too.
MSFPL have strong distribution network which has been primarily responsible for
MSFPL ever enhancing volumes and therefore profitability. MSFPL use Channel
Partners (such as sub-brokers, franchisees, remises etc.) to reach out to retail segment.
MSFPL in the process provide livelihood to many people who would have otherwise
hit the job-market. MSFPL have generous revenue sharing arrangement with Channel
partners.
MSFPL average daily trading volume in all segments of both NSE and BSE put
together amount to Rs. 220 Crore. The total daily trading volume on NSE and BSE
put together around Rs. 220 thousand Crore, therefore amount of 1% to the National
Average Daily Trading volume.

2.10-CURRENT SCENARIO

Servicing more than 1, 00,000 clients.

Ranked among top-50 broking houses.
Servicing more than 698 pin codes.
Having more than 400 Franchisee/Sub-brokers & authorized persons network.
More than 300 employees strength.
25

 Infrastructure spreading 10000 Sq. Ft. into 5 storied building.

26

2.11-COMPANY INFORMATION

NAME
REGISTERED OFFICE &
CORPORATE OFFICE

: Marwadi Shares & Finance Pvt. Ltd.

: Marwadi Financial Centre

Nr. Kathiawad Gymkhana
Dr. Radhakrishnana Road
Rajkot 360 001
HEAD OFFICE
: Marwadi Financial Center
Nr. Kathiawad Gymkhana
Dr. Radhakrishnana Road
Rajkot 360 001
PHONE NO
: 248 13 13
WEB SITE
: www.marwadionline.com
www.msfpl.com
DIRECTORS
: Mr. Ketan Marwadi
Mr. Deven Marwadi
Mr. Sandeep Marwadi
C.E.O
: Jeyakumar.A.S.
DEPUTY GENERAL MANAGER : Mr. Haresh Maniar
COMPANY SECRETERY
: Mr. Tushit Mangukiya
EMAIL
: smarwadi@hotmal.com,
Piyush.marwadi@marwadionline.

27

2.12- BOARD OF DIRECTORS

MANAGING DIRECTOR

: Mr. Ketan Marwadi

WHOLE TIME DIRECTORS

: Mr. Deven Marwadi

&
Mr. Sandeep Marwadi

CEO

: Mr. K. S. Jay kumar

GENERAL MANAGER

: Mr. Paras Maniar

COMPANY SECRETERY

: Mr. Tushit Mangukiya

DY. MANAGER

: Mr. Haresh Maniar

DP MANAGER

: Mr. Arvind Gamot

H R MANAGER

: Mr. Akshay Goswami

ACCOUNT MANAGER

: Mr. Jayant and Mr. Bhargav

MARKETING MANAGER

: Mr. Mihir Kothari

28

2.13-TIME SYSTEM KEEPING

There are numbers of employes working in this company. Marwadi has a shift of work and
they follow the system of punching card system. Marwadi has only one shift of 8 hours
starting from 9.30 A.M. to 7.30 P.M. during working hours they have lunch break of one hour
start from 1.00 P.M. to 2.00 P.M. The following are the benefits of the timekeeping system.
1.
2.
3.
4.

It helps in nothing of presence and absence of employess.

It helps in recording arrival time of employess.
It helps in nothing of employess leave the organisation during or before duty time.
It also makes the note of employees who do work for overtime.
This informations are also given to wage and salary admisistration.

2.14-MEMBERSHIP
Trading cum clearing members for cash & derivative segment
National Stock Exchange of India Ltd.
Bombay Stock Exchange
Saurashtra Kutch Stock Exchange.
Over the Counter Exchange India

29

Chapter 3 Research Methodology &

Proposal

3. Research Methodology & Proposal

1) Management Problem:
How to increase in sales through increase in number of customer.

2) Research Objective:
30

 To study consumer buying behaviour while investing.

To analyze the reason for choosing one particular financial instrument.
To study the investment pattern of different social class investors (in term of age group,
education, income etc.)
To study the difference between various investment option offered at marwadi shares and
finance ltd.
To identify the customers satisfaction & dissatisfaction with respect to product and
services.
To identify the expectations of a customer.

3) Research Question:
1. How much % of your income do you invest?
2. What are the modes of investment you prefer (Rank them according to your preference)
3. What is the importance of following criteria for you while making investment?
4. Do you prefer to invest in
5. What is your present investment portfolio in
6. Which company / institute/ organization you trust the most for investment decisions.
7. How do you take financial investment decision
8. Which factors do you considered the most at time of investment?
9. Are you satisfied with the investment have you made on the basis of following parameter
10. Are you planning to invest in near future?

4) Research Design:
Utilised Descriptive Design for research.

5) Type of Research:
Type of research is Quantitative Research.

6) Research Instrument:
Utilise Questionnaire as an instrument for conducting a research.

7) Sampling Method:
Utilised Quota Sampling for sampling method.

8) Sample size:
I have calculated sample size through Sample Size Software Calculator. Where Confidence
Level is 95%, Confidence Interval is 10, Population of Ahmadabad for investing in the stock
market is 100000 (Est.). Therefore, Sample size is 96.

9) Field work (Duration): 20 days

31

10) Qualification of Researcher:

Sanwarmal Saran (MBA + PGPGBM)

11) Limitations of Study:

There are possibilities that respondents which I have taken may not give accurate
information or may give fake information.
Personal details which have been asked that people are not ready to give especially contact
number, income etc.
It is difficult to get data from female.

12) Data Analysis Method:

Descriptive statistics as a data analysis method.

13) Data Analysis Software:

I have utilised Sample size calculator and Excel 2007 version as data analysis software to
analyse the data which I have collected through research.

3.1 Research Instrument

A questionnaire is a research instrument consisting of a series of questions and other prompts
for the purpose of gathering information from respondents. Although they are often designed
for statistical analysis of the responses, this is not always the case. The questionnaire was
invented by Sir Francis Galton.
Questionnaires have advantages over some other types of surveys in that they are cheap, do
not require as much effort from the questioner as verbal or furniture surveys, and often have
standardized answers that make it simple to compile data. However, such standardized
answers may frustrate users. Questionnaires are also sharply limited by the fact that
respondents must be able to read the questions and respond to them. Thus, for some
demographic groups conducting a survey by questionnaire may not be practical.
As a type of survey, questionnaires also have many of the same problems relating to question
construction and wording that exist in other types of opinion polls.

This research is being conducted by the Marwadi Share and Finance Ltd. on understanding
the Investor behaviour on investment in securities market. Information provided by you
will be utilised for commercial use. Your participation is voluntary but by providing
information you can help us in our market research.
32

Name __________________________________
Mobile No- __________________________ Email Id-_____________________________
Age:

18-21

22 - 34

35 44

45 - 54

55 - 64

Occupation-GovtEmployeePvt Firm Employee Business PersonProfessional

Others
Income-Less thanRs.2LacsRs.2Lacs toRs.5LacsRs.5Lacs to Rs.10Lacs
More thanRs.10Lacs
Questionnaire
1. Where do you invest your Savings?
o Bank Savings Fixed Deposit
o Shares/Debentures
o Gold/Silver
o Real Estate
o Mutual Funds
o Insurance
o Others (Please Mention)________________
2. What is the percentage of savings from your total income?
o <=25%
o <=50%
o <=75%
o Others________________
3. What are the factors to which you give priority when you invest?
o Safety
o High Return
o Liquidity
o Less Risk
o Marketability
4. You invest in the financial instruments/ Securities which gives you:
o High Risk / High Return
o Low Risk / Low Return
o Low Risk / High Return
5. Do you know about equity and derivatives?
o Yes
o No

6. Are you an investor in share market?

33

< 65

o Yes
o No
7. If yes, then in which you have invested in the exchange or Companies?
Please Mention_________________________
8. What is your investment pattern?
o 90 Dayso 1 Yr.
o 1Yr-3Yrs
o 3Yrs-5Yrs
o 10 Yrs.& Above
9. In which type of equity or derivatives you have invested?
o Cash
o Future
10. In which of the company you would like to deal more and more time?
Marwadi Shares

Angel Broking

HDFC

Share Khan

Trade Bulls

ICICI Securities

11. According to your preferences, list down the company in which you would like to invest
in the
Companies? (1st Rank for most preferred & 6th Rank for least preferred.
Companies
MRF
Sun Pharm
Reliance
Adani
Wipro
Nestle

Rank

12. Would you like to give any suggestion to share market Industry?
o _______________________________________________________________
____

34

Chapter 4 Task/Targets assigned

/Achievements

4.1 Experiential learning

No

Major Task

Experiential learning
35

.
1

2
3
4
5
6
7
8
9
10

Interview

I give the first time interview in corporate organisation and learn

how to communicate with interviewer and in interview manage
our self and learn how to give the best in interview.
Company first day/ visited I see the first time office culture and learn manage our self in
company
office and how to interact company employee and office boy.
Meet Guider
Learn how to explain about our self and dictions various topic
Take work /decided title Explain our strength and decide title of project
of project
Reading
I read NSE, BSE book and learn various topics regarding my
project title.
Doubt ask to guider
Various doubt ask to guide related to my project and learn all
topics
Work
with
company learn how to work with company employee and contribute our
employee
knowledge
Log book preparation
Learn preparation log book
Observation in office
Office culture, employee behaviour, client behaviour, other.
Time manage
Learn manage daily office time.

36

4.2 SIP learning

Activity source

Learning

Read about the commodity gold at MCX

India is world`s largest market for gold

jewellery. London is the world`s biggest
clearing house. Trading session Monday to
Friday 10 a.m. to 11:55 p.m. Maximum order
size 10 kg. Different types of gold are there
like Gold m, Gold Petal. Factors influence
the market is Hedging interest of producers
and Macroeconomic factor such as US
$,interest rate.

Read about the Platinum at MCX

The London Platinum and Palladium

market(LPMM)which provides the industry
benchmark price London fix. India
consumption
automobile(55%)
petrochemical (25%),Jewellery (15%) and
electronic (5%).

Read about Silver at MCX.

Silver chemical symbol is Ag. London

Bullion market association (LBMA) is the
global hub of over the counter trading in
Silver. Nearby 60% of India Silver`s demand
comes from farmers .Factor influence such as
Indian`s industrial growth, recession contract
specification trading unit 30kg. Base value
1kg. Maximum order size 600kg.

Read about the commodity rubber at MCX

India, Thailand , China are the major

producers. Consumption 60% transportation
sector. Kerela 90% produce Rubber in India.
Factor influence rainy season , automobile
Industry.

Read about the commodity Aluminium at

MCX
Major exporter Germany, Russia, Canada.
India is 5th largest producer.(Hindalco,
NALCO, BALCO, Vedanta).Trading unit 5
ton. Base value 1kg.Maximum order size
150MT.

37

Read about the commodity Copper at MCX

Read about the commodity Iron ore at MCX

Copper is excellent conductor of heat and

electricity export country Chile, Zambia,
Japan, Russia and Peru. Sterlite, Hindal co,
Hindustan copper are major producers of
cooper. Maximum order size 70MT.

Iron ore demand in automobiles, construction

and manufacturing sector. Major producers
China, Brazil, Australia, India. Factor
influence inventory stock, new mines.
Maximum allowable open position 10,00,000
MT.

Read about the commodity Lead at MCX

Lead-Pb. Main producers Hindustan Zinc ltd.
And Indian lead ltd. Major producers
Mexico, Peru, Turkey. Trading units 5 tons.
Base value-Rs./kg. Maximum order size-100
tons. Tick size 5 paisa/kg.

Read about the commodity Steel at MCX

Read about the commodity Nickel at MCX

Read about the commodity Tin at MCX

Steel consumed by transport, factories, cars.

India steel prices mostly influenced by
domestic demand and supply scenario. Max
allowable
1,00,000
MT.
Quality
specification-Mild steel ingots.

Russia, Canada and Norway are the world`s

largest exporters. Indian demand 40000 MT.
Factors influence fixes on the basis of the
rates that rule on the internationally spot
market. Economy event such as national
industrial growth, recession and inflation
effect. Maximum order size-24MT

Producer-China, Peru, Brazil. London metal

exchange is the major referral market for
38

future trading in tin. India produce 10 tons.

Read about the commodity Zinc at MCX

Zn. Exporting countries Belgium, Canada

and Korea .in 2012 India production was
7,11,266 MT.max order-100 tons.

Read about Aviation Turbine fuel(ATF)

Tokyo commodity exchange and C-CCOM.

Export from India 20.7 millions barrels in
2005-06 to 25.6 million barrels in 2008-09.
Crude oil prices influence ATF prices.
Factors included natural disaster, interest
rate, disruptions in production due to extreme
weather or unforeseen events.

Read about the commodity Crude oil at Russia, Saudi, Iran, US are the top producing
countries. Consumer Japan, China, India.
MCX
Factors influence OPEC output, US crude
and products currency fluctuations. Max
order 10000 barrels.

Attended meeting with my guide.

Attended meeting with my guide

Mr. Bhavik sir told me about what question

to be add in questionnaire like do you with
exchange trade mechanism, if yes then which
of the following exchange you prefer like
MCX, NCDEX, NMCEIL. What products
have you traded on this exchange like
Bullions, Agro, Metals. What is your
experience with commodity market. In which
of the company you would like to deal more
and more time? like Marwadi, Kotak street ,
India bulls.

Discussed about from where I can get

investors like for Bullions 25 shops at C.G.
road, 25 APMC market for agri commodity,
25 manak chawk.Some question regarding
like are aware about Hedging. Have you ever
done Badla trading. Badla trading is also
known as arbitrage. Arbitrage means suppose
39

tea vendor selling at rs.5 its cost is rs.4 so he

making rs.1 profit but he is not satisfied with
that. So he identifies government canteen
which offered tea at rs.2. He could now
simply buy tea for rs.2 and sell it at Rs. 5 and
can make a profit of rs.3.This buying of
thing on one market and sell it to another
market at a higher price is knows as
Arbitrage. Arbitrage opportunities are short
lived. I also learnt about hedging which
mean to eliminate risk by entering into future
forward contract.

40

Chapter 5 Project Data

41

5. Project Data
5.1 Scope of the project
Industry analysis.
Company analysis.
Research methodology and proposal.
Study on financial sector overview.
Detail analysis of financial instruments.
Analysis of top players in each investment in the market (best product).
Study on investment preferences of customers.
Experiences of selling financial product in the market.

5.2 Task expectations from the corporate mentor

Observing various activities which are going on in the office.
In depth analysis of marwadi.
Understand stock market.
Lead generation through telecalling and references and their conversion into
Sales.
marwadi wants to generate new references.
Provide creative inputs in sales activity.(direct selling)
Increase efficiency for selling.
To know the customer preference about the companys product.
Actively participate in group meeting.
Participate in companys training programme for better selling.

5.3 Activity performed

Read companys brochures.
Training programmes for sale the product.
Reference building for sales and telecalling to generate leads.
Open Market Sales Calls with Sales Executive.
Go for field work to sale a product.
Visited around 40 + 100 offices for open market sales calls.
Attended training on Reliance Life Insurance.
List making for competitor analysis.
Attended training session on Reliance Mutual Fund.
Attended Reliance Health insurance product training.
I have done around 600 calls.
I have meet around 15 customers.
I have fill up 100 questionnaires from the open market.

42

5.4 Experiential learning

I have visited around 140 offices for open market sells which is my first time experience.
I have done around 600 calls which is my first time experience.

I knew that difficulty faced by management while start new office.

It is necessary to have information about all tools which used for sale the product in
business.
I learnt one word its called intraday, intraday means if purchase share today and sell same
day.
I learnt always take a visit card and keep our companies card.
I have met the some customers so, I have learnt about customers behaviour and how to
convince or understand about company schemes and other facilities of company.
High qualification is not required for selling.
English is not necessary for sales person.
I learnt how to approach the client, preparation of pitch, voice modulation and content
building for speech for sale the product.
I have seen the online trading and seen people Behaviours and their culture. I learn that
how to do online trading EXP.-stock market equity nifty silver gold and commodities.
Handling No and insult as an answer.
Grooming important to create first impression.
Explanation of the product in short.
I knew about clarity of terms and condition of the Reliance Health insurance product.
I understood the company policy and equity market and commodities market policy. For
example commodities market start of 10 am to 11:30 pm and Monday to Saturday. Saturday
only 10 am to 3 pm open. Equity market starts 9:00 am to 3:30 pm Mon-day to Friday and
Saturday and Sunday close. And demataccount require the pan card is compulsory residences
proof and licence.
I have seen the NCX and MCX and how to work this Sensex. I have learnt about National
commodities exchange and multi commodities exchange. I have learnt all the thing is new
because I am not do share market. Sensex one type of index it directly related to the national
stock exchange and Bombay stock exchange it includes 50 stock.
I have seen online trading and I have done the how to operate BMA nest trader software
and what are the function of the nest trader and how its work for example buying and selling.
To know the response of the people while filed work.
Tools to make other person understand in the selling process which are:
Language
Content to speak
Positive attitude
Communication
Emphasis (voice modulation)
Presentation skill
Confidence
43

5.5 Achievements
I had cleared my target which is given by the company.
I have meet around 15 customers.
I have visited around 140 offices for open market sells which is my first time experience.
I have done around 600 calls which is my first time experience.
I have fill up 100 questionnaires which is helped to the company.

5.6 Failures
Unable to convert references to Sales.
Failure to generate sales through open market calls.
Faced difficulty in coping up with challenges of new branch opening and its setting up.

44

Chapter 6 Findings & conclusion

6.1 Findings:
45

 According to the data that have been collected, all the people who were contacted are
aware about share market in Ahmedabad.
Survey shows that of the people those who are aware about share market 90% people have
knowledge of online share trading & 10% people have not proper knowledge of online share
trading.
People like to invest more in insurance and gold sector rather than share market.
31% of the investment decision of the people is influenced by the financial advisor.
Mostly people are preferring investment which provides safety and good return.
People are prefer to invest in Variable return source.
Out of 100 respondents, people mostly consider Domestic Economy situation factor at
time of investment and 2% people minimum consider other factor at the time of investment.
30% respondent planning to invest in near future.

6.2 Conclusion
46

From the all above information I conclude here the following points.
From the all data I can say that most of the customers are invest their money in insurance
because it secures the investors family future as well as it gives good returns in future.
Equity market investors are investing in Equity to earn a good profit only.
Some of the investors are invest in Real Estate rather than invest in financial product,
which is very growing field in the market & which gives good return in future.
Some investors are there who invest their money to save tax.
Mutual Fund is good option for investors who want to save their tax and safe their money.
Equity is good for the investors who want to take high risk and high returns.
Indian brokerage industry competition is very high which decline the brokerage rate.
At present marwadi shares and finance ltd. provides the cheaper brokerage compare to all
other industry.
As marwadi shares and finance ltd. are new in Ahmedabad they have to plan proper
strategies to overcome their competitors.
This Project Report is undertaken at MARWADI SHARES AND FINANCE LTD as
a part of the P.G.P.G.B.M programme. Marwadi is mainly involved in the brokerage business.
Company offers various services to their clients like Trading in BSE and NSE. Company also
provides trading in NCDEX and MCX. Marwadi is also Depository Participant of NSDL.
This project contains the details about the Marwadi and its functioning. Marwadi is
spread all over India. Marwadi has around 475 franchises and 25 top broking houses. This
project covers the broking industry growth and its future ideas. Project contains the concept
of the capital market. I learnt many things through this project which I did not know before. I
came to know that how trading is done, how to buy or sell the shares, how to fill up the
forms, what are the necessary formalities and so on.

47

Chapter 7 Bibliography

7.1 Name of the refers Books:

1
2

Work book of AMFI mutual fund testing program.

Kotler P. (2003). Marketing Management, New Delhi: Tata Mc Grow Hill, 11 th

3
4
5

edition.
NCFM book of Capital Market.
Times Of India and Business Standard newspapers.
Research Methodology book of C.R. Kothari.

7.2 WEBSITES:

www.marwadionline.com

www.google.com

www.amfiindia.com

www.moneycontrol.com

48

www.stockmarket.com

www.bseindia.com

Thank You

49