A PROJECT REPORT ON

A Project Submitted to

University of Mumbai for partial completion of the degree of

Bachelor of Management Studies
Under the Faculty of Commerce

By

Mr. Kaushik Nayak

Under the Guidance of

Ms. Sonali Devadiga

THAKUR RAMNARAYAN COLLEGE OF ARTS AND COMMERCE

APRIL - 2024
 DECLARATION

I the undersigned Mr. Kaushik Nayak here by, declare that the work embodied in this project work
titled “A STUDY ON INVESTORS PERCEPTION TOWARDS INDIAN COMMODITY
MARKET. AN EMPIRICAL ANALYSIS WITH REFERENCE TO MIRA-BHAYANDAR
REGION OF THANE” forms my own contribution to the research work carried out under the
guidance of Ms. Sonali Devadiga is a result of my own research work and has not been previously
submitted to any other University for any other Degree/Diploma to this or any other University.

Wherever reference has been made to previous works of others, it has been clearly indicated as
such and included in the bibliography.

I, here by further declare that all information of this document has been obtained and presented in
accordance with academic rules and ethical conduct.

Mr. Kaushik Nayak

Certified by

Ms. Sonali Devadiga

Date:

Place:
 ACKNOWLEDGMENT

To list who all have helped me is difficult because they are so numerous and the
depth is so enormous.

I would like to acknowledge the following as being idealistic channels and fresh
dimensions in the completion of this project.

I take this opportunity to thank the University of Mumbai for giving me chance to
do this project.

I would like to thank my Principal, DR. RAVISH R. SINGH for providing the
necessary facilities required for completion of this project.

I take this opportunity to thank our Coordinator MS. SONALI DEVADIGA, for
her moral support and guidance.

I would also like to express my sincere gratitude towards my project guide Ms.
Sonali Devadiga whose guidance and care made the project successful.

I would like to thank my College Library, for having provided various reference
books and magazines related to my project.

Lastly, I would like to thank each and every person who directly or indirectly
helped me in the completion of the project especially my Parents and Peers who
supported me throughout my project.

CERTIFICATE
This is to certify that Mr. Kaushik Nayak has worked and duly completed his
Project Work for the degree of Bachelor in Management Studies under the Faculty
of
Commerce in the subject of COMMERCE and his project is entitled, “A STUDY
ON
 INVESTORS PERCEPTION TOWARDS INDIAN COMMODITY MARKET. AN
EMPIRICAL ANALYSIS WITH REFERENCE TO MIRA-BHAYANDAR
REGION OF THANE.” under my supervision.

I further certify that the entire work has been done by the learner under my
guidance and that no part of it has been submitted previously for any Degree or
Diploma of any University.

It is his own work and facts reported by his personal findings and investigations.

Mr. Kaushik Nayak

Dr. Ravish R. Singh Ms. Sonali Devadiga

Principal Programme Co-ordinator

Internal Examiner External Examiner

Date of submission:
 INDEX

Chapter No. Title of the chapter Page No.

CHAPTER 01

1 INTRODUCTION 1-12

1.1 INTRODUCTION TO STOCK MARKET 1-11

1.2 INTRODUCTION TO MOTILAL OSWAL LTD. 12

1.3 FINANCIAL SERVICES OFFERED BY MOTILAL OSWAL 13

1.4 APPLICATIONS USED BY MOTIAL OSWAL FOR TRADING 14-16

1.5 DEPARTMENTS UNDER MOTILAL OSWAL MUMBAI GROUP 17-19

1.6 ROLE OF STOCK EXCHANGES 20-35

1.7 WHAT IS TREND ANALYSIS 35-36

1.8 HOW TO UNDERSTAND IF A STOCK MARKET TREND IS 36-46
VALID
1.9 TECHNICAL ANALYSIS 46-61

CHAPTER 02

2 RESEARCH METHODOLOGY 62-64

2.1 INTRODUCTION 62
2.2 OBJECTIVES OF THE STUDY 63
2.3 SAMPLE SIZE 64
2.4 SAMPLE UNIT 64

2.5 DATA COLLECTION METHOD 64

CHAPTER 03

3 REVIEW OF LITERATURE 65-72

CHAPTER 04

4 DATA ANALYSIS AND INTERPRETATIONS 73-84

 CHAPTER 05

5 CONCLUSION 85

CHAPTER 06

6 SUGGESTIONS 86

CHAPTER 07

7 BIBLIOGRAPHY 87

CHAPTER 08

8 APPENDIX 88
 ABSTRACT
Without a doubt, stock markets are a vital and necessary aspect of a country's economy.
However, the impact of stock markets on the country's economy may differ from how stock
markets in other countries affect their economies. This is because the impact of stock markets
on the economy is determined by a variety of factors such as the organisation of stock
exchanges, their link with other components of the financial system, the country's governance
system, and so on. Because each of these characteristics is unique to each country, the impact
of stock markets on a country's economy is likewise unique. The Indian capital market
system has experienced large, fundamental institutional reforms over the years, which have
reduced transaction costs and greatly increased efficiency, transparency, and safety. Through
stock markets, all these changes have facilitated the growth of the economy. Similar to how
technical advancements, new products, and services are predicted to fuel economic growth, a
high need for stock market development is anticipated. If you wish to invest in Indian
company equity, you must use stock exchanges. The two most well-known stock exchanges
in India are the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE).
Yet, the typical citizen cannot buy stocks directly from the exchange. This is where a stock
brokerage and financial services organisation comes in. The goal of this study is to focus on
one such company, MOFSL- Motilal Oswal Financial Services Ltd. Motilal Oswal provides
products such as equity investment, derivatives, commodity investment, currency
investments, brokerage, investment banking, wealth management, IPOs, bonds, mutual funds,
portfolio management, and much more. They also offer dedicated advisory, Systematic
Investment Plan (SIP) from WhatsApp, portfolio restructuring, and loan against portfolio.
MOFSL has established itself as a premium stockbroking firm in the country by emphasising
a customerfirst mentality, ethical and responsible business standards, professionalism,
powerful researchbased value trading, and cutting-edge technology. The company has
recently evolved to become a full-service financial services provider with a presence in
investment services. They provide their clients with various sorts of trading accounts as well
as investing methods according to their wealth, history, and risk tolerance. This research will
also shed light on their financial performance, as well as examine the firm's opinions about
their clients. The competitors and notable workings of the company, as well as the procedure
of financial product distribution by the company, were also highlighted.

CHAPTER 1: INTRODUCTION
1.1 Introduction to stock market
STOCK EXCHANGE:
Stock markets are acknowledged as locations for carrying out financial transactions, such as
the buying and selling of stocks or shares, which represent ownership claims on businesses.
This does not always represent a physical place or a specific business, but rather a collection
of stock buyers and sellers. Alternative names for Stock markets include Equity markets
and Share markets. A stock exchange, also known as a securities exchange or bourse, is the
name given to the facility for buying and selling shares of stock, bonds, or other financial
products. A securities must be listed on a certain stock exchange in order to be traded there.
Without an uncertainty, stock markets are a vital and essential component of an economy.
However, the effect of stock markets on a nation's economy may differ from the effects of
stock markets on the economies of other nations. This is due to the fact that the effect of stock
markets on the economy depends on a number of variables, including how stock exchanges
are structured, how they interact with other parts of the financial system, and the governance
structure of the nation. Since each of these elements varies for each nation, so does the effect
of stock markets on each nation's economy.
The two main exchanges in India are the National Stock Exchange of India Ltd. and the
Bombay Stock Exchange. Other than that, there are 22 regional stock exchanges as well.
The BSE and NSE, however, have made a name for themselves as India's two top exchanges
and handle roughly 80% of the country's equity trading. The daily traded volume between the
NSE and BSE is equal.
Stock exchange securities include stock distributed by publicly traded businesses, unit trusts,
derivatives, pooled investment products, and bonds. Stock exchanges frequently operate as
"continuous auction" marketplaces, with buyers and sellers transacting via open outcry at a
central spot such as the exchange's floor or via an electronic trading platform. A security must
be listed on a particular stock market in order to be traded there. Typically, there is a central
location for record keeping, but trade is becoming less connected to a physical location as
modern markets use electronic communication networks, which provide benefits such as
increased speed and lower transaction costs. Trade on an exchange is limited to brokers who
are exchange participants. Other trading venues, such as electronic communication networks,
alternative trading systems, and "dark pools," have taken much of the trading activity away
from conventional stock exchanges in recent years.

National Stock Exchange:

The National Stock Exchange of India Limited (NSE) is the largest stock exchange and is
controlled by a number of domestic and international financial institutions, as well as by both
publicly traded companies and privately owned businesses. Mumbai, Maharashtra, is where it
is situated. According to statistics compiled by the derivatives trade organisation Futures
Industry Association (FIA), it will be the largest derivatives exchange in the world in 2021
based on the volume of contracts exchanged. According to statistics compiled by the World
Federation of Exchanges (WFE) for the calendar year 2021, the NSE is rated fourth globally
in terms of the volume of trades in cash equities. Some of the top banks, insurance
corporations, and financial institutions own it. As the nation's first dematerialized electronic
exchange, NSE was founded in 1992.

As of August 2021, the National Stock Exchange ranked as the ninth-largest stock exchange
in the world with a total market capitalisation of more than US$3.4 trillion. Investors in India
and throughout the world frequently use the NSE's flagship index, the NIFTY 50, a 50-stock
index, as a gauge of the Indian capital market. NSE introduced the NIFTY 50 index in 1996.
Around 1600 firms are listed on the NSE.

To increase openness in the Indian equities markets, the National Stock Exchange was
founded in 1992. The NSE made sure that anyone who was qualified, experienced, and met
the necessary financial conditions was eligible to trade instead of restricting trading
memberships to a select group of brokers. When NSE split ownership and management of the
exchange under the control of SEBI, it was a pioneering move in this environment. A client at
a remote location can now see stock price information with the same ease as those in a nearby
office. Previously, only a small number of people had access to this information. Electronic
depository-based accounts took the place of paper-based settlement, and trade settlement was
always completed on schedule.

One of the most important modifications entailed putting in place a strong risk management
mechanism to assure that settlement guarantees would shield investors against broker
defaults. NSE was founded with a diverse shareholding made up of both domestic and foreign
investors.
The State Bank of India, Life Insurance Corporation, IFCI Limited, IDFC Limited, and Stock
Holding Corporation of India Limited are some of the major domestic investors. GS Strategic
Investments Limited, Aranda Investments (Mauritius) Pte Limited, Gagil FDI Limited, SAIF
II SE Investments Mauritius Limited, and PI Opportunities Fund I are important international
investors. The NSE provides trading, clearing, and settlement services for the debt, equities,
commodity, and currency derivatives markets. It was the first exchange in India to use an
electronic trading platform, linking the nation's investor base.

The NSE also played a role in the establishment of the National Securities Depository
Limited (NSDL), which enables investors to safely retain and transfer their shares and bonds
electronically. Investors can also keep and trade as few as one share or bond. This not only
made holding financial instruments more accessible, but it also eliminated the need for paper
certificates, resulting in a significant reduction in cases involving forged or phoney
certificates and fraudulent transactions, which had previously plagued the Indian stock
market. The security provided by the NSDL, together with the openness, cheaper transaction
fees, and efficiency provided by the NSE, significantly boosted the appeal of the Indian stock
market to domestic and international investors.

Bombay Stock Exchange:

The BSE is one of Asia's oldest stock exchanges. The Bombay Stock Exchange (BSE) was
established in the year 1875. It was once known as the Native Share and Stockbrokers
Association. BSE has almost 5000 companies listed on it. The BSE stock index Sensex
provides the top 30 stock index.
The Bombay Stock Exchange (BSE), often known as BSE Limited, is an Indian stock
exchange. It is situated on Mumbai's Dalal Street. It was founded in 1875 by cotton merchant
Premchand Roychand, a Jain businessman, and is Asia's and the world's tenth oldest stock
exchange. As of January 2022, the BSE is the world's eighth largest stock exchange, with a
total market value of more than 276.713 lakh crore. Unlike in the United States, where major
corporations such as Apple and Tesla account for approximately 70% of the country's GDP,
the corporate sector in India accounts for only 12-14% of the national GDP (as of October
2016). Only 7,400 of these are listed, and only 4000 of those trade on the BSE and NSE stock
exchanges. Thus, the Indian economy, which receives the majority of its income-related
activities from the unorganised sector and household spending, accounts for only about 4% of
the equities traded at the BSE and NSE. The Securities Contracts Regulation Act was initially
adopted by the Indian government on August 31, 1957, and the BSE was the first stock
exchange to receive this recognition. The Phiroze Jeejeebhoy Towers, the current structure,
was built on Dalal Street in the Fort district in the late 1970s and was finished and occupied
by the BSE in 1980. After Sir Phiroze Jamshedji Jeejeebhoy, chairman of the BSE since
1966, passed away, the building's name was changed from its original, the BSE Towers, to
honour him.The S&P BSE SENSEX index was created by the BSE in 1986, offering it a way
to gauge the exchange's overall performance. The BSE opened its derivatives market in 2000
by trading S&P BSE SENSEX futures contracts using this index as a benchmark.

The markets are closed on Saturdays and Sundays. The outcry trading system has been
replaced by either the BOLT (BSE On Line Trading) or NEAT (National Exchange
Automated Trading) system, which is a completely automated computerised trading system.
It enables more transparent trading, quicker transaction execution, and more efficient
processing.

PRIMARY MARKETS:
The primary market is the section of the capital markets that deals with the issuance of new
securities. Through the sale of a new stock or bond issue, firms, governments, or public sector
institutions can acquire money. Typically, this is done through a group of securities dealers.
The process of selling fresh issues to investors is called as Underwriting. In the case of a new
stock issuance, the sale is referred to as an initial public offering (IPO). When a private firm
first sells stock to the public, it conducts an initial public offering (IPO).
The primary market is the place where a business raises financing for the first time. Initial
Public Offerings (IPOs) are only made by companies on the primary market. Investors have
the option to purchase securities directly from the issuing firm through the market. Investors
assist businesses in raising finance by purchasing securities or stock on the primary market.
Therefore, the main market investors' contribution is included in the total amount of capital
that the company has on its balance sheet.
Prior to the IPO, the issuer and investment bankers conduct a marketing campaign to
persuade investors of the investment's worth and potential. Prices in the main market are
generally quite unpredictable due to erratic demand. This is one of the reasons why firms like
to keep the first issue price modest. Even after the securities list on the secondary market, a
corporation might raise capital from the primary market. A business can achieve this by
selling the appropriate shares to investors for less money than the current secondary market
price. By doing this, the business also thanks the investor for making an early investment.

SECONDARY MARKETS:
The financial market for trading assets that have already been issued in an initial private or
public offering is known as the secondary market. Alternately, the term "secondary market"
can be used to describe any market for second-hand items. The word "aftermarket" refers to
the market for a new securities that exists immediately following the new issue. Investors and
speculators can simply place bids and offers for the new stock on the exchange.
The secondary market lists the shares that the corporation issued in the primary market. The
secondary market encompasses all exchanges, including the NYSE, NASDAQ, German
DAX, Australian Stock Exchange, and others. Retail investors can buy securities in
secondary markets and make money. In the secondary market, investors transact with one
another with little to no involvement from the issuing corporation.

The secondary market can be further divided into:

Auction Market – As the name implies, the auction market is where individuals and
institutions gather to announce buy and sell prices. The fundamental notion is that there ought
to be an effective market that gives each party a chance to participate. As a result, the optimal
price to perform the trade would be the mutually agreed-upon price between the buyer and
seller.
Dealer Market – The dealer market, unlike the auction market, does not require the
participants to congregate in a central area. Instead, all market participants interact via
electronic networks Dealers conduct business with buyers or sellers while holding an
inventory of securities. Dealers are referred to be market makers because they compete with
one another to set the optimum price at which to acquire and sell an asset. The underlying
tenet is that dealers will compete to offer investors the greatest price they can get.

OTC MARKETS
A decentralised market in which market participants trade stocks, commodities, currencies, or
other instruments directly between two parties without the use of a central exchange or broker
is known as an over-the-counter (OTC) market. Over-the-counter marketplaces have no
physical presence; instead, trading takes place electronically. In an OTC market, a trade can
be made between two parties without the other parties being aware of the price at which the
deal was made.
The phrase initially referred to a system that was rather disorganised and in which trade took
place through dealer networks rather than at a physical location as we have previously
defined. The phrase likely originated from the burgeoning off-Wall Street trading that took
place during the 1920s' great bull market, in which shares were traded "over-the-counter" on
stock exchanges. In other terms, the equities were "unlisted," meaning they were not listed on
a stock exchange. But as time went on, the definition of OTC started to shift. The National
Association of Securities Dealers (NASD) founded the Nasdaq in 1971 to provide liquidity to
the businesses that were transacting through dealer networks. At the time, there weren't many
regulations governing shares traded over-the-counter, something the NASD aimed to change.
The definition of over-the-counter has changed as the Nasdaq has grown into a significant
exchange. Today, equities that are not traded on a stock exchange like the Nasdaq, NYSE, or
American Stock Exchange are typically referred to as being "over-the-counter" (AMEX).
This indicates that the stock trades on either the pink sheets or the over-the-counter bulletin
board (OTCBB). Both of these networks identify themselves as sources of pricing data for
securities, not exchanges. Companies that trade shares on an exchange must adhere to
significantly more restrictions than OTCBB and pink sheet companies. Penny stocks and
securities from extremely tiny companies make up the majority of the securities traded in this
manner. For these reasons, it is incorrect to argue that the Nasdaq trades in unlisted securities
even if it is still regarded as a dealer market and, technically, an OTC. Instead, the current
Nasdaq is also a stock exchange.
OTC marketplaces often have less transparency and are subject to fewer restrictions than
exchanges. As a result, OTC market liquidity can be more expensive.

THE GENERAL IMAGE OF THE SHARES MARKET:

In the equity market, everything that rises must eventually fall. The direction of the equity
market cannot be predicted with absolute certainty. However, you must at least take into
account historical tendencies and recognise that there is a risk the market could behave
similarly and we'll enter a period of major loss. Anything might happen to render useless all
the data gathered to examine the trajectory of the equities market.
The best course of action is to maintain a varied portfolio of investments. You will just be
adding more shares at a reduced price if you continue to buy even as the market declines.
Could you earn more money if you only bought and sold at low points in relation to the
average rupee cost? Yes, but the chances of consistently succeeding are low. The best course
of action for the majority of investors is to simply keep making biweekly, monthly, or
quarterly investments into the same diversified portfolio, regardless of the state of the market.
You just purchase stocks or funds on sale when the market is down and chaotic. It's going to
come up again someday.

EQUITY AS AN INVESTMENT
In general, making an equity investment refers to purchasing and keeping shares of stock on a
stock exchange in the hope of receiving dividends and capital gains as the stock's value
increases. It could also be used to describe purchasing equity (ownership) in a start-up or a
private (unlisted) corporation. Private individuals frequently invest in shares through mutual
funds or other types of collective investment schemes, many of which have quoted prices that
are posted in financial publications or magazines; such funds are typically managed by major
fund management firms. These holdings give private investors access to the funds
diversification and the expertise of the fund's professional fund managers. Holding shares
directly is an alternative, which is typically used by large individual investors and pension
funds. In the institutional setting, many clients who own portfolios have what are known as
segregated funds in addition to or instead of the pooled mutual fund alternatives.
To determine if an equity is overpriced or under-priced in comparison to a long-term
government bond, a computation can be conducted. The Yield Gap or Yield Ratio is used to
describe this. It is a comparison between the dividend yield on equity and the dividend yield
on long-term bonds.

EQUITY MARKET
Equity markets have a lengthy history, with debt issuances reaching back to the 1300s. In
1531, Belgium founded the first stock exchange. The market mostly dealt with promissory
notes and bonds, rather than actual equities. The governments of the British, Dutch, and
French granted charters to businesses whose names contained the term "East India"
throughout the 1600s. Due to the high number of pirates, bad weather, and poor navigation,
the countries would support sea missions that would bring back goods in exchange for a share
of the revenues from India and Asia.
Ship owners would look for investors to assist fund journeys rather than taking on all the risk
themselves, and in exchange, would give investors a portion of the profits if the voyage was
successful.
These were the original types of limited liability organisations (LLCs) that were only
intended for one trip. Investors could spread their risk by investing in a variety of different
ships and excursions, while shipowners could send their ships without taking on the risk
themselves. The East India firms finally stopped forming one-time LLCs for each journey
and started paying dividends from the money collected after many voyages. It was the first
type of joint-stock company in which businesses could demand more funding, expand their
fleets, and offer investors greater returns.

THE IMPORTANCE OF EQUITY MARKETS

Equity markets are critical in a market-based economy. They offer capital raising, liquidity,
and investment opportunities. These vital functions, which are the characteristic of
capitalism, enable our economy to flourish indefinitely.
Capital Raising- Raising equity capital is made easier by equity markets. This is crucial for
business owners who have an idea for a company but lack the funds to launch it themselves.
Banks are debt investors and are not inclined to lend to these companies without security or a
disproportionately large return. As a result, it makes sense for these business owners to give
up a piece of their company in exchange for the funding. Since these enterprises do not need
to go looking for individual investors since the network of investment banks and financial
exchanges brings the investors to them, equity markets enable them to access the largest
pools of capital.
Liquidity- Market liquidity is also provided through equity markets. The ease with which an
asset can be converted into cash is referred to as liquidity. Checking accounts, for example,
are the most liquid, but a painting is illiquid. Finding a buyer or seller for your equity
securities is simple because the stock markets serve as a central marketplace for buyers and
sellers. You can also easily exchange your equity securities for cash. Since they reflect the
immediate underlying supply and demand from millions of buyers and sellers throughout the
world, equity markets are effective pricing systems. Prices rise when there is a high demand
for stocks and more buying activity, while prices fall when there is a low demand and more
selling activity.
Investment Options- Investors have a wide range of investment possibilities thanks to equity
markets. By having the ability to choose multiple equity securities, investors can tailor their
risk profile and gain exposure to various businesses and sectors. For investors with a higher
risk tolerance, equity markets serve as the primary substitute for debt investments.
UNDERSTANDING THE FOUR MEASURES OF VOLATILITY
The word "volatility" is being used more frequently in financial market commentary by the
press and industry experts. In fact, Bloomberg Radio publishes a daily report on volatility.
The notion is not well understood by the majority of pundits or the typical investor, despite
the fact that the word is being bandied about with what appears to be a high level of
understanding.

- Historical volatility;
- Implied volatility;

- The volatility index; and

- Intraday volatility

Type 1: Historical Volatility

In its simplest form, volatility is the daily fluctuations in stock values. This is what we refer
to as historical volatility (or historic volatility), and it serves as the foundation for
understanding volatility more broadly. The standard deviation of a stock's or other financial
instrument's price change compared to its historical price over time is known as historic
volatility. Although it seems rather elegant, the term is daunting for the typical investor who
has a deep understanding of statistics.
Consider a pendulum.
The pendulum is made of a steel ball that is strung up from the ceiling by a rope.
When our ball is at point 2, the pendulum begins in its resting position (the mean). The ball
would swing from point 1 to point 3 if you raised it to point 1 and let it go. Over time, the ball
will continually pass through point 2 as it swings back and forth. If this were a stock, the
difference between points 1 and 2 or 2 and 3 would stand in for the volatility of the stock
price's movement.
I'm not connecting the swinging of a pendulum from a statistical standpoint with the standard
deviation formula since I don't want to offend any physicists out there. I'm only using the
pendulum as a visual assistance, really. Stocks with bigger swings between points 1 and 2
than another stock will be more volatile than the other stock.
Now picture a wind blowing against the metal ball. The volatility of a stock will rise due to
the wind's strength. Volatility will increase as a result of market corrections, rises in
uncertainty, or other risk-causing events. Say that the markets are calm and there is no breeze.
The area of the movement from point 1 to point 3 will diminish because there is no external
force to move the pendulum. Volatility starts to decrease at this point. Although some refer to
it as complacency, most people see it as a market with little or falling volatility.
Type 2: Implied Volatility
In the options market, price discovery and trade execution are actuated by buyers and sellers
coming together in an auction setting. Dollars and cents are used to express these prices. We
may determine the volatility, which is implicit from a traded price or the bid and offer, using
these prices, knowing all of the other Black-Scholes variables, and applying the Black-
Scholes formula. The implied volatility of the option is what is meant by this. Please be
aware that implied volatility will vary for a company based on different options strike prices,
unlike historic volatility, which is constant for a specific amount of time. The volatility skew
is what is used to describe this.

Type 3: Volatility Indices

We may determine an index's volatility, such as the S&P 500 (SPX) or its exchange-traded
fund equivalent, the Spyders, in the same way that we can determine a stock's volatility or the
implied volatility from its options (SPY). That goes one step farther than that. A volatility
index has been developed for various indices and is frequently used in financial media.
The three most typical are:
S&P 500 Volatility Index (VIX)
S&P 100 Volatility Index (VXO)
NASDAQ 100 Volatility Index (VXN)
These implied volatility indices for several series of options are weighted averages (puts and
calls). These indexes are frequently used as a barometer of market sentiment by participants
and watchers in the market.

Type 4: Intraday Volatility

Finally, there is intraday volatility to consider. This is the most visible and easily accessible
definition of volatility, representing market movements during the course of a trading day.
Intraday volatility is the Justice Potter Stewart form of volatility because it is difficult to
define but easy to recognise. A typical error is to confuse intraday volatility with the implied
volatility index. These two types of volatility are not interchangeable, yet they are both
important in determining investor emotion and expectations.
Using S&P 500 data, I constructed two metrics of market volatility. The first is intraday
volatility, which is calculated by dividing the difference between the day's high and low by
the SPX's closing price. The second, Lakeview Asset Management VDEV, is a unique
measure of volatility that I developed by predicting future volatility using historical trends in
the SPX. The VDEV will be covered in a subsequent instalment of this series.

In summary, the four categories of volatility are as follows:

Historical volatility - - the movement of an asset or asset class relative to itself;
Implied volatility -- volatility that is embedded in an option price;
Volatility index - - a weighted average of implied volatilities for options on a particular
index;
Intraday volatility - - the price movements in a stock or index on or during a given trading
day.

LEADING STOCK EXCHANGES

The following are some of the biggest and most well-known equities markets:

New York Stock Exchange (NYSE) – United States

Nasdaq (NASDAQ) – United States

Japan Exchange Group (JPX) – Japan

London Stock Exchange (LSE) – United Kingdom

Shanghai Stock Exchange (SSE) – China

Hong Kong Stock Exchange (HKEX) – Hong Kong

Euronext – European Union

Toronto Stock Exchange – Canada

Bombay Stock Exchange – India

1.2 INTRODUCTION TO MOTILAL OSWAL LTD.

PROFILE OF THE ORGANISATION:

Mr. Motilal Oswal and Mr. Ramdeo Agrawal formed Motilal Oswal Financial Services
(MOFSL) in 1987. The Bombay Stock Exchange accepted Motilal Oswal as a member in
barely three years (BSE). In 2001, the company began providing advisory services and
derivatives products on the BSE and NSE. The business started investing in private equity
and banking in 2006. The same year, Peninsular Capital Markets, a South Indian brokerage
firm, was purchased by Motilal Oswal Group. In order to provide its consumers with online
trading, the company partnered with State Bank of India and Punjab National Bank in 2006
and 2007. In Malad, Mumbai, the business established one of India's largest equity dealing
and advice rooms in 2008, covering 26,000 square feet (2,400 square metres).
The Securities and Exchange Board of India (SEBI) granted the final certificate of
registration necessary for Motilal Oswal Financial Services (via its subsidiary Motilal Oswal
Securities Ltd.) to launch a mutual fund business in India in January 2010. A wholly owned
subsidiary of Motilal Oswal Securities Limited is MOAMC (motilal oswal assets
Management Company).
With its portfolio management Services Company, ETFs, and mutual funds, it offers
investment management and advisory services to investors situated in India and abroad.
One of India's fastest-growing asset management firms, Motilal Oswal Asset Management
Company Ltd, recently passed the $1 billion milestone for equities assets under management
(AUM) in June 2015. Aspire Home Finance Corporation Limited (AHFCL) is a housing
finance firm that is expertly managed. Motilal Oswal Securities Limited (MOSL), a division
of Motilal Oswal Financial Services Limited, is the parent company of AHFCL (MOFSL).
In order to assist clients in achieving their financial and personal objectives, Motilal Oswal
has provided unbiased, conflict-free advice and guidance on client investments. They began
operations in 1987 under the title "Motilal Oswal." aiming to be a full-service brokerage firm
and offering its clients comprehensive consulting services that would allow managing all of
their financial planning requirements
The customer can invest in stocks, certificates of deposit, mutual funds, tax-saving plans, and
many other items with a single click. Additionally, it is significantly simpler to handle
because all customer investments are in one location. The initial stage will be assisted and
guided by customer relationship managers.

1.3 FINANCIAL SERVICES OFFERED BY MOTILAL OSWAL

PRODUCTS AND SERVICES OFFERED BY MOFSL:

MOFSL provides a wide range of products and services. The products include investments in
equity, derivatives, commodities, currency investments, initial public offerings (IPOs), bonds,
fixed deposits, ME gold, Portfolio Management Service (PMS), and investments in US
shares. Additionally, the business offers services including devoted advisory, Systematic
Investment Plan (SIP) via WhatsApp, portfolio restructuring, loan against portfolio, and 24-
hour chat services. MOFSL understands its customers' needs and tailors a variety of products
and services to meet those needs.

Motilal Oswal is involved in variety of businesses –

1. Private Equity
2. Assets Management
3. Wealth Management
4. Investment Banking

1.4 APPLICATIONS USED BY CUSTOMERS OF MOTILAL OSWAL FOR

TRADING

APLICATIONS USED BY CUSTOMERS –

MO INVESTOR – TRUSTED INVESTMENT SOFTWARE
What exactly is the MO Investor app?

- The MO Investor app is essentially a share market investment application developed

by Motilal Oswal, one of India's largest stock brokers. The smartphone app is
available for both Android and iOS platforms and can be downloaded from their
respective app stores.

- The MO Investor app, with its simple and speedy user interface, provides quick and
easy access to the stock market. In addition to boosting your trading, the smartphone
app provides a variety of simple stock investment choices.
What features does the MO Investor app have?

- Educational videos on stock trading and financial markets

- Completely customisable watchlist
- Investment in IPOs through UPI
- Stock and mutual fund SIP
- Price alerts
- Trading reports

TRADING IN STOCK MARKET VIA DESKTOP

Key Benefits:

- Super-fast trading execution with 1-second rate refresh

- Advanced charting tools and tick-by-tick action watch

- Solid Research based recommendations ranging from Hours-Days-Weeks-Months
Years
- Trade guide signal - new generation trend guiding tool to auto-generate buy/sell ideas
- Access to over 30,000 research reports across all asset classes in a single click

TRADE GUIDE SIGNAL:

Trade Guide Signal is a trend-guiding instrument of the latest generation that automatically
generates buy/sell ideas based on pre-established technical rules. To guarantee you never
miss an opportunity, you should also receive real-time SMS messages when the entry or exit
signal is created.
TICK-BY-TICK ACTION WATCH:
Desktop applications notify you when a security or set of securities are offered at a lower
price than the spot rate, enabling you to make quick trading decisions. In addition to
providing realtime stock spread computations, it also lets you define customizable settings
that make it easier for you to track the stocks.

ORGANIZATIONAL STRUCTURE OF MOTILAL OSWAL LTD.

Two stated key management personnel and 10 directors make up the organisation.
Motilal Gopilal Oswal, Raamdeo Ram Gopal Agarawal, and Navin Hari prasad Agarwal,
who were appointed on May 18, 2005, have the longest tenures of all the directors now sitting
on the board. Over 17 years have passed since they first joined the board. Swanubhuti Jain,
who was selected as a director on December 24, 2020, is the most recent appointment.
The most additional directorships are held by Raamdeo Ram Gopal Agarawal, who holds
positions at 11 different businesses. The corporation is associated with 37 additional
businesses through its directors.

18 May, 2005

MOTILAL GOPILAL OSWAL

Director
18 May, 2005

RAAMDEO RAMGOPAL AGARAWAL

Director
18 May, 2005

NAVIN HARIPRASAD AGARWAL

Director
27 April, 2017

SHALIBHADRA NAVINCHANDRA SHAH

KMP
04 November, 2017

Kailash Chunni Lal Purohit

KMP
21 August, 2018

AJAYKUMAR SREEDHARA MENON

Director 01 July, 2020

CHITRADURGA NARASIMHA MURTHY

Director
01 July, 2020

DIVYA SAMEER MOMAYA

Director
01 July, 2020

PANKAJ BHANSALI
Director
31 July, 2020

RAJAT RAJGARHIA
Director
16 September, 2020

CHANDRASHEKHAR ANANT KARNIK

Director
1.5 DEPARTMENTS UNDER MOTILAL OSWAL MUMBAI GROUP- OTHER
DEPARTMENTS
Motilal Oswal, Mumbai has following departments:

- Sales Department
- Dealing Department
- Operations
- Back-Office
- Risk management services

SALES DEPARTMENT
The sales division staffs a group of approximately 10 sales executives and one assistant unit
manager.
Sales executives go to the market, look for clients, schedule meetings with them, and explain
the company, its products, and services.
The unit manager oversees the entire sales team. Provides guidance on how to pitch in to a
new or existing client.

LEAD MANAGEMENT SERVICES

The lead management system is intended to assist the sales team with:

• Organizing and tracking all leads received by them

• Scheduling and setting reminders for appointments

• Keeping track of all conversations (meetings, telephone calls, and emails) with
potential clients; and
• Tracking and calculating productivity and incentives.

ADD NEW LEADS

Every lead that an employee receives must be followed up on in order for the system to
function properly. Because of this, every lead must be recorded into the LMS. A lead is added
to the executives' pool of pending leads as soon as it is submitted into the system.

FOLLOW UP:
As soon as the date is entered into the system, all follow-ups made with potential clients are
recorded.
This aids users in reviewing the history of meetings with a specific lead. For the user, it
serves as a helpful reference tool.

SALES CALLS: THE FUNNEL EFFECT

- Not every lead results in a meeting. Only 50% of the potential clients accept
to a meeting, according to the data entered by the sales executives. The
remaining 50% takes the information and leaves.
- Active leads are those where the potential customers must consent to meet
with the sales representatives. This demonstrates their interest in learning
more about the products and services, which increases the likelihood that
they will convert.
- Only 5 of the 75 current leads have been closed, according to data entered by
the Sales Executives. The remaining 70 either decide to go early or desire
additional time.
DEALINGS DEPARTMENT

- A professional staff of fundamental research analysts, technical analysts, and

commodities consultants work for the dealing department.
- Each investment advisor has a significant clientele. Any client can use PC
and mobile software to conduct online trading. However, clients can always
trade through these financial advisors if they choose to do so offline.
- Investment Advisor give the following calls:

• Long term fundamental calls

• Short term calls
• Intraday calls
• BTST calls

- Each of the three markets—equity, commodities, and currencies—has its own

terminal.

It's advantageous because everyone may have in-depth knowledge of every industry, and
clients can establish positive relationships with their IA or RM because their accounts are
entirely managed by a single individual.

BACK OFFICE:

- A proper communication system between the regional office and its subsidiary
offices, as well as between the regional office and head office, is the responsibility of
the backoffice department.

- Operation departments come in two different varieties. They take care of the
following heads:

• Finance/cash
• KYC

- When making any payments in or out, the finance department takes all criteria into
account. It takes into consideration the bank's needs as they relate to the respected
branch.
- The KYC department considers all of the client's papers as well as all of the other
information about the client. Only the head office is informed of these facts, which are
kept private and are never divulged to any company employee.
RMS DEPARTMENT

- The RMS department assists clients in minimising risks such as credit risk, interest
rate risk, liquidity risk, and re-investment risk associated with debt investments and
other fixed income instruments.
- As permitted by the rules and regulations, they use derivative instruments such as
index futures, stock futures, and options contracts, warrants, convertible securities,
swap agreements, or any other derivative instruments in conjunction with new
advance trading systems for the purposes of hedging and portfolio balancing.
- The RMS department employs stop loss and other techniques to mitigate the risk
associated with trading volumes, liquidity, and settlement systems in stock and debt
markets.

1.6 ROLE OF STOCK EXCHANGES

The following are just a few of the many economic responsibilities that stock exchanges play:

1. Capital raising for businesses: Companies have the option to generate funds for
expansion through the sale of shares to the investing public through the Stock
Exchange.

2. Corporate governance: Due to the expectations of these shareholders and the

more strict regulations for public corporations imposed by public stock exchanges
and the government, businesses with a diverse range of owners typically improve
on their management standards and efficiency.

3. Using savings to finance investments: When people withdraw their savings and
invest in stocks, it results in a more rational allocation of resources because funds
that could have been consumed or kept idle in bank deposits are mobilised and
redirected to promote business activity with benefits for several economic sectors
such as agriculture, commerce, and industry, resulting in stronger economic
growth and higher productivity levels and firms.
 4. Economic barometer: Share prices on the stock exchange rise and fall in
response to market forces. When companies and the economy as a whole show
signals of stability and growth, share prices tend to rise or remain stable. A stock
market crash could result from an economic recession, depression, or financial
crisis. As a result, changes in share prices and stock indexes generally can serve as
indicators of the direction of the economy as a whole.

5. Facilitating company growth: Companies see acquisitions as a chance to grow

their market share, diversify their revenue streams, extend product lines, enhance
distribution networks, and hedge against volatility. A stock market takeover offer
with a merger agreement is one of the simplest and most typical ways for a
company to develop through acquisition or fusion.

6. Providing small investors with investment opportunities: Because a person just

purchases the quantity of shares they can afford, investing in shares is accessible
to both large and small stock investors, unlike other enterprises that require a
significant financial investment. As a result, the Stock Exchange gives smaller
investors the chance to buy shares of the same corporations as institutional
investors.

7. Government funding for development projects: Governments at all levels may

elect to sell bonds, a different kind of assets, in order to raise funds for
infrastructure projects like sewage and water treatment plants or housing
developments. The public can purchase these bonds on the stock exchange,
lending money to the government in the process. The issuance of Which bonds
can eliminate the requirement to directly tax the populace in order to finance
development; however, because such bonds are secured by the government's full
faith and credit rather than with collateral, the government is forced to tax citizens
or otherwise raise additional funds to make any regular coupon payments and
refund the principal when the bonds mature.

8. Wealth Redistribution: The purpose of stock exchanges is not to share wealth.

However, dividends and stock price increases that could result in capital gains will
allow both amateur and experienced stock investors to partake in the riches of
successful companies.

A Traded Share's Price Levels are as follows:

- Opening Price: The starting price of the market. It is, in other words, the cost of the
initial transaction.
 - Closing Price: This is the cost at the time the market closed or the cost of the last
transaction.
- Intra-Day High: This shows the highest price the share was traded at during the day.
- Intra-Day Low: This is the price at which a share of stock traded during the day's
trading.

Debt Investments:
Debt securities (in the form of non-convertible debentures, bonds, secured premium notes,
zero interest bonds, deep discount bonds, floating rate bond / notes, securitized debt, pass
through certificates, asset backed securities, mortgage backed securities, and any other
domestic fixed income securities, including structured obligations, etc.):

- Debt obligations issued by the Indian government, state and local governments,
government agencies, and statutory entities (which may or may not be backed by a
guarantee from either the state or the federal government);
- Securities backed by the Indian government and state governments;

- "Securities issued by Corporate Entities (Public/Private Sector Undertakings),"

- Securities issued by development financial institutions and banks in the public and
private sectors.

Money Market Instruments Include:

- Commercial Papers
- Commercial bills
- Treasury bills
- Government securities having an unexpired maturity upto one year
- Call or notice money - Certificate of deposit
- Usance bills
- Permitted securities under a repo / reverse repo agreement

Any other similar instruments that the RBI or SEBI may occasionally permit
Investments will be made via negotiated agreements, placements and right offers (including
renunciation), initial public offerings, other public offers, and secondary market purchases.
The securities may be privately put, listed, unlisted, secured, unsecured, rated, or unrated, and
may have any maturity.
The AMC still has the freedom to invest in any type of debt or money market security or
instrument.
Investments in debt securities will often be made in instruments that at least one credit rating
agency has deemed to be of "high investment grade" under the relevant regulations. If a debt
instrument is not rated, the Board of Directors of the Trustee and the AMC must first approve
the investment before it can be made. The risk profile of investments in debt instruments is
typically modest, and it is considerably lower for investments in money market securities.
The maturity profile of debt instruments shall be chosen in line with the AMC's assessment of
the state of the market and the prognosis for interest rates.
According to the SEBI Regulations, the Scheme shall not invest in:

• any unlisted security of an associate or group company of the Sponsor; or

• any security issued by way of private placement by an associate or group company of the
Sponsor; or

• any listed securities of group companies of the Sponsor in excess of 25% of the net assets.
The Scheme may invest in other schemes managed by the AMC or in the schemes of other
mutual funds, as long as it is consistent with the Scheme's investment objectives and in
accordance with the current SEBI Regulations.

Overview Of The Regulatory Framework Of The Capital Market In India

India has a financial system governed by independent authorities in banking, insurance,
capital markets, and many service industries. The Indian financial system is governed by two
governing bodies that report to the Ministry of Finance. They have:

Reserve Bank of India

The RBI, India's central bank, was established in 1935. It is in charge of overseeing the
financial and banking systems. It develops monetary policy and establishes exchange control
standards.

The Securities and Exchange Board of India (SEBI)

On April 12, 1988, the Government of India established SEBI as a non-statutory agency to
promote the orderly and healthy growth of the securities market and to safeguard investors.
Economic Affairs Department
The Department of Economic Affairs' capital markets section regulates capital markets and
securities transactions.

The capital markets division has been tasked with supporting the government in developing
appropriate policies for the orderly growth and development of the securities markets in
collaboration with the SEBI, RBI, and other authorities. It is also in charge of the Unit Trust
of India (UTI) and the Securities and Exchange Board of India (SEBI).

The capital market division deals with the following issues:

-Policy matters connected to the securities market
-Policy matters relating to the regulation, development, and investor protection of the
securities market and the debt market.
-SEBI-related organisational and operational issues

The Capital Market is governed by:

• Securities Contract (Regulation) Act, 1956
• Securities Contract (Regulation) Rules, 1957 SEBI Act, 1992
• Companies Act 1956
• SEBI (Stock Brokers and Sub Brokers) Rules, 1992
Self-regulating Role of the Exchange
The exchange operates as a Self-Regulatory Organization under the limitations established by
the SCRA, SEBI Act, SEBI Guidelines and Rules, and the Exchange's Bye-laws and
Regulations.
These responsibilities are carried out by the Governing Board. The Executive Director has all
of the rights of the governing board save the ability to dismiss a member indefinitely, declare
him a defaulter, or expel him. The Executive Director makes objective choices in areas such
as surveillance, inspection, and inquiry within the limitations established by the governing
board or statutory committees such as the Disciplinary Action Committee.
Trading on the Stock Exchange
This section will introduce us about the procedure and instruments used to help a customer or
a client to trade with arcadia securities. This method is nearly identical to that of any other
trading firm, with the exception of the expense of brokerage commission.
Trading: This is the procedure through which a customer is given the ability to purchase and
sell shares. This buying and selling can only be done through a broker, which is where
Arcadia assists its customers.
A consumer who want to trade with a brokerage business must have a demat account, a
trading account, and a savings account. Anyone with the following documents can open all of
the above-mentioned accounts and begin trading.

Basic Requirement for doing Trading

Trading needs the opening of a Demat account as a basic requirement. A dematerialized
account is referred to as a demat account.
If you wish to purchase or sell stocks, you must first open a Demat account. As a result, it is
similar to a bank account in which actual money is replaced by shares. To open a Demat
account, we must approach the Depository Participants (DP, which are similar to bank
offices).
A depository is a location where investors' stocks are kept in electronic form. Depository
participants are agents who work for the depository (DPs).
Consider it like a bank. The repository is the headquarters where all of the technology and
details of all accounts are kept. And the DPs are the branches that provide services to
individuals.

There are only two depositories in India -

The National Securities Depository Ltd (NSDL) and the Central Depository
Services Ltd (CDSL).

Capital Market Participants

- Banks
- Exchanges
- Clearing Corporations
- Brokers
- Custodians
- Depositories
- Investors
 - Merchant Bankers

Parameters Of Investment
The type of investing varies from person to person and is unique to each one because it is
determined by a variety of factors such as future financial goals, current and prospective
income models, risk tolerance, current requirements, and so on. When an investor's life stage
and financial goals vary, so does his or her unique investor profile.
A country's economic development is dependent on its investment. The growing economic
environment of competitive marketplaces representing customer sovereignty has far-reaching
repercussions for their savings and investments. Investment refers to a person's commitment
to his future.

INVESTMENT
The term "investment" can be defined in a variety of ways based on various philosophies and
principles. It is a term that can be applied to a variety of situations. Yet, the various
definitions of "investment" are more similar than dissimilar. In general, investment is the use
of money to make more money. Savings acquired through delayed consumption are also
considered investments. According to economics, investment is the use of resources to
increase future revenue or production output.
Investments include money deposited in a bank and machinery purchased with the
expectation of earning money in the long term. Although the term investment has a broad
connotation, it has slightly varied implications in different industrial areas. Economists define
investment as any real or tangible object, such as a building or machinery and equipment.
The term "sustainability" refers to the process of determining whether or not a particular
piece of property should be preserved for future use. The practise of investing, according to
finance, refers to the purchase of a financial instrument or other valuable object with the
expectation of receiving favourable returns in the future. The most crucial characteristic of
financial investments is their great market liquidity. Valuation is the process of determining
the worth of a financial investment.
Investment, according to business theories, is the activity in which a manufacturer purchases
a physical asset, such as stock or production equipment, with the idea that it would help the
business flourish in the long run.
An investment decision has the following characteristics:
1. It entails the commitment of funds that you have or will have in the future.
2. The investment results in the purchase of a plot, a house, or shares and debentures.
3. The physical or financial assets you purchased are expected to provide specific benefits in
the future. The benefits could be in the form of consistent revenue over time, such as
 interest or dividends, or sales or appreciation at some point in time, as is common with
investments in land or precious metals.

Investing Fundamentals.
The term "investment essentials" refers to the reasons why investment is necessary. The
investment strategy is a plan designed to guide an investor in selecting the most appropriate
investment portfolio to help him reach his financial goals within a specific time frame.
An investment strategy often consists of a set of strategies, rules, and laws that are designed
to exchange or compromise the investor's risks and returns. Some investors seek to grow their
earnings through high-risk investments, while others prefer to invest in assets with low risk.
Nonetheless, the majority of investors choose for a middle-of-the-road investment plan.
Active strategies: One of the most important active techniques is market timing (an investor
can enter the market when it is low and exit when it is high), which is used to maximise
yields.
Passive strategies: They are frequently used to reduce transaction costs.
The purchase and hold strategy, which is essentially a long-term investment, is one of the
most popular. The purchase and hold strategy, which is essentially a long-term investment
plan, is one of the most popular.
The premise is that stock markets produce a decent rate of return notwithstanding periods of
instability or decline. Indexing is a strictly passive element of the buy and hold strategy in
which an investor acquires a small number of each share existing in a stock market index,
such as the S&P 500 Index, or, more likely, in an index fund, which is a type of mutual fund.
Also, it is advised to use the purchase and hold approach because the market timing method is
not appropriate for small investors. Because the holding duration is typically equivalent to the
length of the mortgage loan, small-scale and retail investors adopt the buy and hold method
when investing in real estate.

Principles Of Investment
The investment strategy is built upon five fundamental tenets. These are what they are:
Keep the long term in mind - There is strong empirical support for the idea that stocks offer
the highest long-term risk-adjusted returns. Investments would be undertaken with a long-
term vision in an effort to fully capitalise on this occurrence. Investments grant ownership in
proportion. The process of valuing a firm is comparable to investing in a company. Thus, it is
essential to have a thorough understanding of how the company runs.
Keep a safety margin in place - The intrinsic value of the company would serve as the
standard for assessing the relative attractiveness of equities. To protect capital and produce
greater growth, the investment manager would try to buy equities that trade at a discount to
this value.
Have a tempered perspective on the market - To comprehend the influence of shifting
business and economic trends as well as investor mood, the investment portfolio would be
routinely examined. Although short-term market volatility would have an impact on portfolio
valuations, this is not anticipated to have an impact on investors' choices to invest in
fundamentally sound businesses.
A methodical approach to selling - The decision to sell a holding would be made based on
whether the anticipated price appreciation was realised or became impossible due to a change
in fundamental factors affecting the company or the market in which it competes, or because
another option was available that, in the opinion of the investment manager, offered superior
returns. It would be vital to routinely meet with the management in person in order to
implement the investment method properly. This would give insight into their big picture
outlook and dedication to their company's long-term goals. These meetings would also be
beneficial in examining key factors of management quality, such as minority shareholder
orientation, adversity tolerance, and approach to allocating surplus cash flows.

Types of Investments
After making an investment decision, a specific investor usually determines the investment
types, which is known in the financial world as capital budgeting. With the expansion of
financial markets, there are more investment alternatives.
Investment is defined as the following in financial terminology:

• Buying securities in the money or capital markets

• Investing in Monetary or Paper Financial Assets in the Money or Capital Markets

• Purchasing liquid assets such as gold, real estate, and collectibles

Investors anticipate that these types of investments will generate some revenue in the form of
positive cash flow. These assets can also have an impact on the specific investor, either
positively or negatively, depending on the changes in their respective values.
Investments are frequently done through middlemen who invest money received from
individuals. As a result, the individuals are seen as having claims against the specific
middleman.
It is normal practise for specific intermediaries to have their own legal procedures. These are
some examples of intermediaries:

- Banks
- Mutual Funds
- Pension Funds
- Insurance Companies
- Collective Investment Schemes
- Investment Clubs

Personal finance investment refers to monies used to purchase shares, invest in collective
investment plans, or even purchase an asset with an element of capital risk. Investments in
real estate involve the purchase of property for the express aim of earning revenue.

Residential real estate investments can be made by purchasing dwelling property, whilst
commercial real estate investments can be made by owning commercial property for
corporate purposes that create some money.

Investment
The money you earn is spent in part and saved in part for future expenses. Instead of sitting
on your savings, you may invest them to earn a return in the future. This is referred to as
investment.

Why should a person invest?

One must invest in order to earn a return on idle resources, earn a precise amount of money
for a specific life goal establish a plan for an unpredictable future.

Many Investing Alternatives Are Offered

One can invest in physical assets such as real estate, gold/jewellery, commodities, and so on,
as well as financial assets such as fixed deposits with banks, small savings instruments with
post offices, insurance/provident/pension fund, and so on, or securities market related
instruments such as shares, bonds, debentures, and so on.

TRADING PROCEDURE ON A STOCK EXCHANGE:

The Trading procedure involves the following steps:

Selection of a broker: Securities can only be bought and sold through Stock Exchange
members who are SEBI registered brokers. An individual, partnership firm, or corporate body
can act as the broker. Therefore, choosing a broker to purchase or sell stocks on the investor's
or speculator's behalf is the first step.

Opening Demat Account with Depository: Demat (Dematerialized) accounts are accounts
that an Indian citizen must open with a depository participant (banks or stock brokers) in
order to trade listed securities in electronic form. Opening a Demat account is the second
stage in the trading process. A depository is where the securities are kept in electronic form.
A depository is a business or organisation that keeps securities, such as shares, bonds, mutual
funds, and debentures (Funds, etc.) There are now two depositories in India: CDSL and
NSDL (National Securities Depository Ltd.) (Central Depository Services Ltd.) Depository
and investor do not interact directly. Only depository participants can communicate with
investors on behalf of the depository. The depository participant will keep track of the
investor's securities account balances and periodically update the investor on the status of
their holdings.

1. Placing the Order: The investor can place the order after opening the Demat
Account. The order can be placed with the broker either personally or via phone,
email, or other means. Investors must place orders that clearly describe the price range
at which securities can be bought or sold. For instance, "Buy 100 Reliance stock
shares for not more than Rs 500 each share."
2. Executing the Order: The broker executes the order, i.e. he buys or sells the
securities, based on the investor's instructions. The broker creates a contract note for
the executed order. The contract note includes the name and price of the securities, the
names of the parties, and the brokerage (commission) charged by him. The broker
signs the contract note.
3. Settlement: This refers to the actual transfer of securities. This is the final stage in the
broker's trading of securities on behalf of their clients. There are two kinds of
settlements.

PRODUCTS & ADVISORY

PRODUCTS –

- DERIVATIVES
- COMMODITY
- CURRENCY
 - MUTUAL FUND
- FIXED DEPOSITS AND BONDS
- IPO’S

ADVISORY –

- PORTFOLIO EVALUATION SERVICE

- FINANCIAL PLANNING SERVICE

PRODUCTS:

DERIVATIVES – A derivative is a contract between two or more parties, the value of which
is determined by an accepted underlying financial asset (such as a securities) or collection of
assets (like an index).

FUTURES - The client can now trade index and equity futures on the NSE through Motilal
Oswal. Futures trading involves the client taking buy/sell positions in index or stock(s)
contracts with a contract length of up to three months. Trading FUTURES is easy! If the price
moves in the client's favour throughout the contract life (i.e. increases if the client has a buy
position or falls if the client has a sell position), the client makes a profit. Currently, only
chosen equities that meet the liquidity and volume criteria have been enabled for futures
trading. Calculate Index and Know Client Margin are tools that assist clients in estimating
client margin requirements as well as index and stock price movements.

OPTIONS – A contract known as an option allows the buyer the right to purchase or sell
shares at a particular price, on or before a particular date. The buyer must pay the seller a sum
of money known as a premium in exchange for this. If the price is not in the buyer's favour,
he is not obligated to finish the deal. The client must put down a specified percentage of the
order amount as margin in order to take a buy or sell position on index or stock options. By
establishing considerably larger buy/sell positions than they could have in the cash segment
when trading options, the client can leverage their trading limit. The seller of a call option has
the obligation to sell the underlying asset at the specified strike price, whereas the buyer of a
call option has the right but not the obligation to purchase the underlying asset at the given
strike price by paying a premium. The seller of a put option has the obligation to buy the
underlying asset at the specified strike price, whereas the buyer of a put option has the right
but not the obligation to sell the underlying asset at the specified strike price by paying a
premium.
The client can open trades under OPTIONS and benefit from more trading possibilities while
paying a lower price.

COMMODITY – One of the most popular types of investment trading today is commodity
futures. Some investors decide to make all of their money from their portfolio via commodity
futures trading. Any form of transportable property that is not money, property that can be
sued for, or securities is considered a commodity. It is a physical good, such as food, grains,
or metals that investors buy or sell, typically through futures contracts, and that can be
exchanged for another good of the same kind. The forces of supply and demand affect the
commodity's price.
Commodities are a useful diversifier to lower the volatility of returns in a portfolio because
they have a low or negative correlation with other asset classes such as equities.
Understanding that not everyone's investment demands are the same, their team provides a
customised approach with custom-made techniques fit for individual trading needs.

CURRENCY - Motilal Oswal provides its clients with a straightforward and convenient
approach to trade and hedge their currency risk in four pairs of currencies: the US dollar, the
Euro, the British pound, and the Japanese yen against the Indian rupee.
By giving clients the option to trade in several asset classes of currencies, we give clients the
chance to diversify their portfolios.

FEW ADVANTAGES OF THIS MARKET-

▪ More trading opportunities are available during the trading hours of 9:00 a.m. to 5:00
p.m.
▪ Trade significant currencies such as the US dollar, euro, pound, and yen against the
Indian rupee.
▪ Due to a regulated clearing house's settlement guarantee, there is no chance of a
counterparty default.
▪ Low tax rates (No STT and CTT)
▪ Daily INR Cash Settlement via MTM (Mark to Market)
MUTUAL FUND - Investors who want to engage in a variety of schemes with varying
financial goals but lack the time or ability to select successful equities might turn to mutual
funds. The benefits of mutual funds include expert management, cheaper transaction costs,
and diversification, liquidity, and tax advantages. With over 2000 funds available, Motilal
oswal provides its customers with a straightforward and practical way to manage their
personal finances. They give clients the option to diversify their portfolio by letting them
choose from the several funds they work with. Their specialists have examined the funds and,
using a set of criteria, have generated a selection of funds because choosing the best mutual
fund might be complicated and time-consuming. The consumer has the option of building
their own portfolio or investing in the funds recommended by their advisors.

FIXED DEPOSIT AND BONDS – CORPORATE

FIXED DEPOSITS
They provide a variety of Corporate Fixed Deposits with varied tenures, interest rates, and
institutions to meet your investment needs. The deposit plans have been carefully selected
from among the highest-risk options to guarantee that clients benefit from both rewards and
protection.
Why opt for Corporate Fixed Deposits?
▪ Fixed deposits are ideal for the client if their risk appetite is minimal.
Corporate fixed deposits are very safe because the majority of the instruments
are graded.
▪ Attractive returns with interest rates above those of fixed deposits offered by
banks.
▪ Higher Interest rates for senior citizens.
▪ Flexible tenure – there are various tenures ranging from 1 to 7 years.
▪ Potential to earn compounding interest on client money by reinvesting the
principal amount along with the interest earned.
▪ The customer has the option to select the interest frequency; most issuers
provide monthly, quarterly, biannual, and annual cumulative deposits.

BONDS -A bond is a security issued by a business, financial institution, or government that

promises a fixed or ongoing interest payment in exchange for the money borrowed over a
specific time period. Thus, by investing in a bond, an investor makes a fixed-term,
fixedinterest loan of money. The principle amount is reimbursed at the bond's maturity date
after the interest has been paid to the holder on a monthly basis. Although both bonds and
stocks are considered securities, the main distinction between the two is that while
stockholders control the company, bond holders are its lenders. Another distinction is that
stocks may remain outstanding indefinitely, whereas bonds typically have a limited term, or
maturity, after which the bond is repaid. The customer also has the choice of cumulative
interest, which is recurring interest in addition to the principal. The issuer of a bond serves as
the borrower (debtor), the holder is the lender (creditor), and the coupon is the interest. As a
result, a bond is similar to a loan. With the help of bonds, the borrower can finance long-term
investments or, in the case of government bonds, current expenses. Bonds must be repaid
over a set length of time at regular intervals.

IPOs -An initial public offering (IPO) is the process of selling new shares of a private
company to the general public. A business can raise funds from the general public by issuing
public shares. Since share premiums for current private investors are frequently included, the
change from a private to a public business can be a crucial period for private investors to
completely realise rewards from their investment. Additionally, it enables public investors to
take part in the sale.

TYPES OF STOCK BROKERS

Full-Service Brokers-These companies bill a higher proportion of assets or higher

commissions. They provide the broadest range of diverse financial services and typically pair
each client with a certified individual broker. These businesses typically have their own
investment banking and research divisions that give them access to initial public offerings,
products, and analyst recommendations (IPOs). Customers have the choice of using many
alternative channels, such as internet and mobile, or directly dialling their individual broker to
place trades. Full-service brokers have offices and locations in person. Additionally, they
provide banking, asset management, and financial planning services. Many full-service
brokers also offer services for personal, business, and home loans in addition to savings and
checking accounts. Although the majority of full-service brokers offer online trading and
access, they often charge higher charges and send orders either directly to their own market
makers or through order-fill agreements with other companies. Because they cater to long-
term investors, full-service broker online platforms typically include fewer day trading tools
and indicators.
Discount Brokers- By offering independent research, mutual fund access, and basic banking
products, discount brokers have closed the gap with full-service brokers in terms of financial
products and services. Discount brokers charge lower trade commissions, as the name
implies. Swing traders and less active day traders may be drawn to the commissions, which
typically run from Rs 1 to Rs 20 per transaction ticket. Since they serve aggressive investors
and day traders, platforms typically provide more trading and research capabilities than full-
service brokers. Numerous of the bigger discount brokers have their own direct-access
trading systems and have actual offices spread all over the nation.
Online Brokers- Online brokers, also known as direct-access brokers, offer the lowest
commissions to active day trading clients and are frequently priced on a per-share basis,
which is necessary when scaling in and out of positions. These towers offer direct-access
platforms with charting, routing, and access to dark pools, numerous exchanges, market
makers, and electronic communication networks (ECN). The major benefits of direct-access
brokers are speed and accessibility, which frequently permit point-and-click operations and
programmed hot-keys. On these systems, complicated stock and option orders can be made.
The monthly charge for the heavy-duty platforms is frequently made up of software and
exchange fees. Based on the client's monthly trading volume, the software fees are frequently
waived or reduced. It is best for active day traders to employ reputed online/direct-access
brokers in order to provide maximum control, flexibility, and quick order fulfilment. Online
brokers typically don't offer customers access to real office locations in order to keep
overhead costs low and pass on the lower rates.

MARKET TRENDS
Trends in the market are constantly taken into account when trading stocks. Any seasoned
stock trader will tell you that traders become lost if they don't understand market movements.
Trends give you information about prospective future orientations as well as the market's
current trend, which might be upward, downward, or steady. Many traders look at historical
market patterns that match local conditions. For instance, understanding past market
tendencies during inflationary or depressed economic periods may be useful in analysing a
stock's probable return. Regular market analysis may also help you choose a specific industry
in which to invest.

WHAT IS A TREND?
A trend is the stock's overall movement in a particular direction. The trends change direction
upwards or downwards depending on whether the market is bullish or bearish. A movement
must last a certain amount of time to be categorised as a trend, but the trend becomes more
significant the longer it persists (upward or downward). Instead of selling stocks as soon as
they experience an uptrend for a little duration, holding onto equities for a longer period of
the trend helps traders generate significant returns.
Traders utilise market up and down movements to determine whether to purchase or sell
shares. Traders may make decisions to hold onto equities that have performed well in the past
based on previous similar trends and share market data. Market trends communicate
information regarding patterns in specific firm stocks as well as different industries.

1.7 WHAT IS TREND ANALYSIS AND HOW DOES IT APPLY TO THE STOCK
MARKET?
The technique of analysing existing patterns in order to forecast future trends is known as
stock market trend analysis or share market trend analysis. You can try to forecast if a
specific market sector that is growing now will continue to grow in the future using share
market trend analysis. Or, would a market trend in one industry spark a similar one in
another. Although there is a lot of data used in this share market trend analysis procedure, no
one can anticipate the trends with absolute certainty.
Technical analysis's share market trend analysis uses historical data to attempt to forecast a
stock's future movement. A trend in the stock market is based on the idea that past
movements are indicators of future trends. Short-term, intermediate-term, and long-term
trends are the three primary categories of share market trends. Trends can also be categorised
as upward, downward, or sideways.
You can gain insight into how markets operate by learning more about markets and trends.
History has shown that trends in the main markets of bull and bear markets last for one to
three years. A secular trend can endure even up to a decade or more, according to share
market research. A very long-term trend, this is. There may be intermediate trends within any
longterm trends that confuse business experts and journalists. These could be abrupt changes
in the direction of the present trend that cause markets to move in the opposite direction of
what has been the trend for a while.

SHARE MARKET TREND ANALYSIS

Share Market Trend Analysis makes predictions about market trends. If a bull market run is
the anticipated trend, you can ride it out until a trend reversal. Investors who follow trends
rather than bucking them can benefit financially. However, as was previously said, you
cannot entirely rely on a pattern in the event that it abruptly changes. You can simply be
shorting your profitable stocks. It's not a good idea to react to abrupt changes since you can
lose out on future opportunities to earn larger profits if you had simply waited out the trend.

1.8 HOW TO UNDERSTAND IF A STOCK MARKET TREND IS VALID?

The series of price fluctuations must be real for it to be a significant trend and not merely an
oddity as there is no time limit for a movement to be deemed a trend. And you should be able
to recognise it as an investor. So, here are the top five rules for trend analysis of the stock
market.
Three data points needed - A trend is only regarded reliable if there are three or more points
of contact.
Direction- Trends can go in one of three directions: up, down, or sideways. All three sorts of
trends can be seen on the same chart if you observe prices over an extended period of time.
Watch the slope- A trend's slope tells you how much the price should change every day. A
definite tendency is shown by steep lines that are travelling either upward or downward. The
legitimacy of the trend and its predicting abilities are both called into question if the line is
excessively flat, though.
Time the trend- The duration of a trend defines its validity. Monthly time series are
generally more important than weekly prices, which take precedence over daily prices.
Longevity - The more time a trend exists, the more weight it holds.

If you completely educate yourself on stock market analysis and equity, you may use them to
support your analysis and produce beneficial results.

THE BENEFITS OF INVESTING IN THE FINANCIAL MARKET

For some, the financial market is like a bogeyman, impossible to comprehend and only
accessible to a select few. Others use the market to manage their savings, get financing,
speculate, manage risk, and even as a form of activism and a symbol of power and status.
It is normal to hear attitudes ranging from absolute discredit in the financial system to
intelligence and self-praise for belonging to this elite. A casino game, a game of chance, or a
tool for innovation and growth based on a thorough and rigorous approach. As a result, as
investors, we contribute to the financial system with the goal of growing our assets and being
better prepared for the future and the life we desire.
Savings and financial security- The financial market is a regulated, transparent, and
efficient location to keep and manage our savings with the goal of consuming in the future. In
addition to investing in actual assets such as real estate or art, investing in financial assets
allows you to identify the optimal portfolio for your individual features. However, like with
any investment, the results do not materialize without rigor, planning, and money. When we
want to buy a property to invest in and gain income from it, we do not consider selling it right
away, and we are aware of the associated costs. The same holds true for financial
investments. In making decisions, we must be cautious, patient, and wise. On the one hand,
we are concerned that if we live too long, we will run out of money. On the other hand, we
are terrified of dying too soon and not being able to enjoy the collected savings, or of failing
to reach our goals and endangering those who rely on us. This balance is attainable thanks to
the many financial tools at our disposal.
Diversification of the heritage- Individual or family assets are frequently concentrated in a
real estate asset, such as our home, or in a business if we own a business. To determine the
importance of this investment in terms of overall equity, simply take the reference value of
the property or business, add all financial investments and bank accounts, and subtract all
current credit. You'll be astonished to learn that a sizable portion of the assets is allocated to
just one or two assets. Some people object to viewing our home or our own business as
investments. However, we should not dismiss this categorization because we cannot predict
the future. The large variety of securities and instruments listed on the stock exchange gives a
huge benefit to the investor by lowering the individual risk of each asset. This advantage is
enhanced and made possible through collective investment vehicles (PPR, insurance,
investment funds).
In addition, unlike the property or its own business, it provides immediate liquidity. It is also
necessary to emphasize the cost of liquidity. Not just the cost of price discovery, but also the
cost of the transaction. This is frequently significantly less than the cost of a different
instrument, such as real estate, art, or gold. I emphasize the latter because safeguarding and
protecting these investments still comes at a cost.
Obtain precise objectives- The most common objective is retirement, but we can also
identify other goals such as schooling, buying or investing in a business, transferring assets to
the next generation, donations, leisure, and even purchasing a car or a new house. We can
develop a plan for each of these goals and gain the tools needed to put that strategy into
action on the market.

Future life expectancy- It's one of the most underappreciated advantages. The truth is that
we rarely consider the inflation effect when calculating the returns on our assets. We must
examine the real return as well as the nominal return. One of the advantages of investing in
the financial market is the ability to beat inflation. One of our aims should be to protect our
savings from long-term loss of purchasing power.
Participate in economic growth and development- There are numerous opportunities to
engage in commercial or social engagement. One is via the financial market. Buying a stock
or bond, placing a time deposit, or purchasing government debt.
The financial market can also be a useful vehicle for us to utilize our financial investments as
collateral to seek finance for, say, starting our own business.
If we have diversified our financial holdings with shares, bonds, or collective investment
instruments, we can acquire funding reasonably easily by using these securities as collateral.
The financial market provides numerous methods for this goal without requiring the investor
to sell. We can even manage their financial impact. We can utilize simple instruments like
credit (debt issue) or more sophisticated transactions like options, swaps, or futures
Flexibility- Financial instruments are typically exchanged in units held by several investors
with varying levels of money and education, as well as varying objectives and preferences. A
scenario for monetizing very illiquid and long-term investments is also possible. Consider the
circumstance of being a stakeholder in a company that is not publicly traded.
Tax efficiency- In terms of taxation, it may be more advantageous to invest savings in
financial instruments rather than in a personal business or property.
Confidentiality- Each investor can invest in the products and solutions that he or she desires
in a private and secure manner. The intangible nature of this form of investment ensures
secrecy.

WHAT IS A BULL MARKET?

-Bull markets are characterised as those that rise quickly over an extended period of time.
-This suggests that the market will continue to move upward as indicated by the indexes.
-Traders and investors frequently think that the rise will last for a longer time.
-In this instance, the country's economy strengthens and job levels rise.
-When the economy is strong and employment levels are high across the board, the bull
market is influenced.
-For a period of time, all asset classes will rise.
A bull market is characterised as a market where the prices of the securities rise over time or
are predicted to rise. Due to the favourable market conditions, buying is encouraged.
Optimism, better returns, robust stock trading, and investor confidence are the fundamental
characteristics of such a market. Furthermore, it might be challenging to predict when market
patterns will alter.
Those who expect prices to rise are known as bulls, and the sentiment is known as bullish.

WHAT IS A BEAR MARKET?

-The bear market is described as the market that is inverse to the bull market.
-The economic conditions in this market collapse dramatically or rise to a certain degree.
-This indicates that the indexes will move downward, and as a result, all asset classes will fall
up to a particular level for a period of time.
-Factors that influence the bear market include when share prices show a deterioration in the
economy and pessimism.
-Investors and dealers expect it will last for the foreseeable future.
A bear market is a financial market that is distinguished by a sustained decline in the prices of
securities. Pessimism prevails in this market, and investors take a short position, i.e. securities
are sold owing to the expectation of loss by retaining them. In a bear market, stock trading
declines, returns are poor, investor confidence is low, and the economy is generally in
recession.
Bears are investors that predict prices to decline, and their sentiment is characterised as
bearish.

BUSINESS MODEL OF MOTILAL OSWAL FINANCIAL SERVICES LTD.

There are various business models that the company has to offer to its business partners.
Motilal Oswal has an accomplice strength of in excess of 1400 through its different plans of
action and offers types of assistance at both retail and institutional levels, for example,
Motilal Oswal demat Record opening offers sub representative plans of action through which
their methodology towards colleagues is that of being an expansion of their image and an
augmentation of the family. This full assistance stockbroker professes to give the
accompanying advantages to its colleagues:
Administrative Center Help - Helps in Hazard the executives and Business activity Help.
Securities exchange examination and guidance - helps in research reports, Warning,
techniques. Business improvement valuable open doors - helps in onboarding help,
mentorship projects and Innovation support through a restrictive versatile application.
Innovation help through exchanging items - helps in exchanging stages and portfolio devices

BUSINESS MODEL PROGRAMME OF MOTILAL OSWAL OFFERING

PARTNERSHIP:
Franchise- Individual or organizations that are hoping to extend their monetary impression
can choose the Motilal Oswal establishment model. You want to have an essential office
space alongside a little group that can dealt with everyday tasks. Business visionaries who
think they have a fantasy to become large and have the energy and the capacity to seek after
the excursion towards their fantasy. With every one of the underlying costs dealt with, you
get an income sharing of 60% of the financier produce by them. The qualification for this
model is great and reliable standing in the monetary space, a refundable store of INR 3 lakh
to be made to the full help stockbroker and an encounter of 2 to 3 years in the surges of dealer
or sub representative. They should likewise have a base speculation of INR 5 lakh to INR 10
lakh at the beginning with sensible wallet for framework related costs and an area of 150 to
200 sq. ft. to set up an office in a year.
Employee to Entrepreneur- This program is explicitly for individuals who are either a
worker at a stockbroking house or have a sensible involvement with the securities exchange.
The qualification rules for this plan of action are that you should either be a worker of any
stockbroking organization or should be immediate stockbroking experience. It's for the
people who need to go into business. Indeed, even in this model you get to keep a particular
level of the general income created through your expansion to the program. This rate can go
from 30% to 40% of the general income.
Remisier- This plan of action of Motilal Oswal requires no forthright capital use to set up the
business. A singular hoping to not spend anything on the workplace foundation cost might
evaluate this plan of action. The thought is basic, they give intrigued business prompts
Motilal Oswal and financier created from the changed over clients will have an offer for the
Remisier. Anyway, the specialist guarantees that it will give a wide range of instruments,
research and other related help for client/lead procurement. The qualified rules for setting up
a Remisier plan of action with Motilal Oswal are sensible standing and hold of potential
client base in the monetary space, deals insight of something like 2 to 3 years of monetary
items, a functional cost limit of INR 1 lakh. Business people needing to set up their business
at no capital expense and to a great extent work freely.
Channel Partner- This game plan of Motilal Oswal channel associate is undeniably a joint
exertion with the trader rather than working under the delegate. If you are presently working
with a specific plan of clients for monetary trade trading, then, at that point, you could choose
to choose this game plan. The idea, for this present circumstance is to offer the ongoing client
base of yours with other potential endeavor open entryways isolated from the ones they are at
this point into.
The capability estimates in case of a channel assistant program is a working game plan of
clients trading or placing assets into the protections trade. Since channel assistants will carry
monetary patron base to the full assist delegate, they with getting better pay sharing on new
hypothesis things sold (which is anything from half to 60%). Individuals who should
collaborate with us to deal with a greater extent of clients and take part in the pay pie of the
allout money related intermedia on an expected entryway.
Digi Partner- It is an exceptional organization model where you're start to finish business
right from procuring clients, account opening, business tasks, item ideas, warning item
Speculations, and balance is done carefully. As the name proposes, Digi-Accomplice is a
one-of-a-kind organization model where you're Start to finish business right from getting
clients, account opening, business tasks, item ideas, warning item Speculations and control is
done carefully.
Advantages of joining Motilal Oswal Digi Accomplice: No impulse of office foundation,
Online Assets and Protections pay-in and pay-out office, Call-N-Exchange managing
administration support, Simple client account opening in addition to rewarding financier.

FLUCTUATIONS IN STOCK MARKET

Companies' profits or losses play a role in these fluctuations, but there is much more going on
than that. Only what someone will pay for a stock determines its value. A company's worth
typically increases if it generates significant profits because investors are more willing to pay
more for a company's stock when it is performing well. The value of stocks is influenced by a
wide range of additional factors. It's difficult to say whether just one or two things influence
share prices.
So let's look at a few of the variables that impact share prices.

INTEREST RATES
Interest rates are the fees we must pay a bank for a loan or the fee it must charge us to
maintain our funds in the bank. When interest rates are high, stocks typically decline because
consumers feel they shouldn't take the risk of investing in the stock market when they can
make a
respectable profit by keeping their money in banks or buying bonds.
THE ECONOMIC CONDITION
If there is more money in circulation, more will flow into businesses, driving up prices.
PUBLICITY
Stock prices are affected by publicity. It's likely that their price will rise if news reports claim
that firm ABC has just developed a new kind of ice that will change the market. On the other
hand, it is likely that the price will decrease if a report claims that Company ABC's president
is a criminal and stole the pension money.
SUPPLY AND DEMAND
This is the first element that has an impact on stock prices. The price of that particular stock
rises when we observe that more people are purchasing stocks. On the other side, when
people are setting their stocks, the price of stocks declines. Therefore, it is exceedingly
challenging to forecast the Indian Stock Market. This is the main justification for hiring a
reputable stock market advisor.
CAPITALIZATION OF THE MARKET
When we try to estimate a company's worth just on the price of its stock, we make a huge
mistake. We should be aware that the larger the company's market capitalization, the more
important it is. This contributes to determining a company's worth. As a result, market
capitalization is a key factor in determining share prices.
EARNING PER SHARE
When it comes to "earnings per share," it refers to the profit that a specific company made per
share, specifically during the most recent quarter. This is the most crucial component if you
need to know the company's health.
Additionally, earnings per share has an impact on market buying behaviour, which raises the
price of a particular stock. The release of the quarterly report is crucial for every publicly
traded company for this reason. Therefore, the best course of action for us if we want to make
a lucrative investment is to keep a close eye on the quarterly reports of various companies.
Before we want to spend our hard-earned money in the stock market, this is crucial.
THE EFFECT OF THE NEWS
Another element that affects the share price is news. People strive to invest their money in a
specific stock or market when there is good news about a certain firm or stock. The interest in
purchasing the stock rises as a result. However, there are a variety of situations in which we
might invest our money to see rapid growth.

SWOT ANALYSIS:
SWOT analysis is a method of strategic planning that offers evaluation tools. Fact-based
analysis, new viewpoints, and innovative ideas result from the identification of fundamental
strengths, weaknesses, opportunities, and threats. A SWOT analysis gathers data from
internal sources (the company's strengths and weaknesses) as well as from outside factors that
could have an uncontrollable impact on decisions (opportunities and threats). When different
groups or voices inside an organisation are free to offer true data points rather than
predetermined messaging, SWOT analysis performs at its best. The results of a SWOT
analysis are frequently used to support a single goal or choice that a business is making.

SWOT Analysis of MOFSL:

Motilal Oswal Financial Services' SWOT analysis examines the brand in terms of its
advantages, disadvantages, opportunities, and threats. In the Motilal Oswal Financial Services
SWOT Analysis, the external elements include opportunities and threats, while the internal
components are the company's strengths and weaknesses. A company like Motilal Oswal
Financial Services can assess its operations and performance against its rivals using the
triedand-true management framework known as SWOT analysis. In the banking and financial
services industry, Motilal Oswal Financial Services is one of the top names. Below, Motilal
Oswal Financial Services' target market, segmentation, positioning, and USP are all listed
along with its SWOT analysis and competition.

STRENGTHS:
FOR SHAREHOLDERS:

- Stock prices rise in accordance with company growth. Because the market has a
tendency to rise, if an investor chooses the correct firms to acquire stocks from, the
 likelihood of profit is very high. Furthermore, if the investor traded actively, he may
benefit more and in less time.
- Stock investing has the added benefit of being accessible. Today's market has a wide
selection of stocks. Anyone with enough capital can purchase stock ownership by
conducting adequate research and analysis of the stocks and the corporations that
issued them.
- Also, compared to other securities, the market's traded equities have more liquidity.
This means that it can be quickly transformed into cash by selling the equities to other
market participants.
- This indicates that it is only a matter of selling the stocks to other market participants
to turn it into cash. Last but not least, purchasing stocks can help you pay less in
capital gains taxes. This is accomplished by subtracting the capital gains from the
losses sustained with equities, whose market value dramatically declined.

FOR THE COMPANY:

- The money is set aside for the operations and the planned projects.
- Only when a business is profitable, such as through a stock market floatation or a sale
to new investors, do investors see a return on their investment.
- The appropriate venture capitalists and business angels can add priceless expertise,
contacts, and experience to the company. They can also help with planning and
important choices.
- Investors all share a vested interest in the firm's performance, including the growth,
viability, and increase in value of the company. As the business expands, investors are
frequently willing to offer further cash.
STRENGTHS OF MOFSL
The essential elements of Motilal Oswal Financial Services' business that provide it a
competitive edge in the market are considered the company's strengths. The strength of a
brand can be attributed to a variety of things, such as its financial standing, skilled
personnel, distinctiveness of its products, and intangible assets like brand value. The
following are the strengths identified in Motilal Oswal Financial Services' SWOT
analysis:

- A variety of financial goods with an emphasis on premium traders - The

emphasis is on effective trade execution.
- Effective operations in private equity

- Have more than 1500 locations in India

- Financial services and goods such wealth management, brokerage and distribution,
commodity trading, portfolio management, institutional equities, private equity, and
investment banking.

WEAKNESS:
FOR SHAREHOLDERS:

- The danger associated with stock market trading is one of its key drawbacks. The
financial strength of the corporation that issued the stocks has a significant impact on
the value of the securities. Investors who own shares in the company who files for
bankruptcy also lose money. In addition, a country's overall economic health affects
how well a company does on the stock market. The prices of equities also decrease
when businesses are struggling, as in a recession.
- The additional expense resulting from brokerage services is another drawback of
investing in stocks. In order to efficiently identify the greatest deals on the market,
using a broker's services is required. However, the cost of their services means a
decrease in the income received from stock ownership earnings.

FOR COMPANY:

- Obtaining equity funding is difficult, expensive, and time consuming for the
company. Prospective investors will look for background information on the
company, scrutinising prior results and forecasts and questioning the management
team. Nonetheless, regardless of whether or not they obtain money, many businesses
find this discipline valuable.
- Depending on the investor, the corporation may lose some control over managerial
decisions. The corporation will have to devote management time in order to produce
consistent information for the investor to observe.
- At initially, management will have a lesser stake in the company, both in terms of
percentage and absolute monetary value. Yet, if the investment results in the business
becoming more successful, the lower stake may become much more valuable in
absolute monetary terms.

- While soliciting funds, such as when advertising investments, there may be legal and
regulatory considerations to consider.

WEAKNESS OF MOFSL
The obstacles that impede the company from completing its objective and reaching its full
potential are considered weaknesses. The following are the MOFSL's shortcomings:

- Only urban areas are affected by penetration. The MOFSL is unknown in rural areas.
- In comparison to other stockbroking firms in the sector, the trading fees are
expensive.

- Investors are less aware of the investment opportunities provided by MOFSL due to a
lack of advertising.

OPPORTUNITY:
 - The market is presenting new opportunities and new investment options. -
Many people want to invest but refrain due to a lack of understanding.

OPPORTUNITIES FOR MOTILAL OSWAL FINANCIAL SERVICES

Any brand has the potential to improve in certain areas in order to grow its customer base.
Opportunities for a brand can include geographic expansion, product enhancements,
improved communication, etc. The opportunities identified in the Motilal Oswal Financial
Services SWOT Analysis are as follows:

- A developing rural market

- Making Money Urban Youth Seeking Investments

THREATS:

- Recession
- New government
- Bubble burst
- Fluctuating dollar prices
- Competitors
- Low brokerage rate of competitors

THREATS AGAINST MOTILAL OSWAL FINANCIAL SERVICES

Any firm may face risks in the form of elements that could harm its operations. Threats can
come from a variety of sources, including increased rival activity, shifting governmental
priorities, alternative goods or services, etc. The following are the risks identified in Motilal
Oswal Financial Services' SWOT analysis:
- Strict economic regulations from the government and the RBI - Foreign financial
institutions entering the Indian market COMPETITORS

There are several brands in the market which are competing for the same set of customers.
Below are the top 3 competitors of Motilal Oswal Financial Services:
1. Sharekhan
2. Indiabulls
3. Angel Broking

1. 9 TECHNICAL ANALYSIS

What is Technical Analysis?

Based on market data, technical analysis is a tool or strategy used to forecast the likely future
price movement of a security, such as a stock or currency pair.
The idea that all market participants' aggregate buying and selling accurately reflects all
pertinent information regarding a traded security and subsequently assigns a fair market value
to the security is the basis for the legitimacy of technical analysis.
Making sensible investing decisions requires you to determine the timing of your
investments, which is where technical analysis comes in. On the premise that events on the
stock exchange have a tendency to repeat themselves, technical analysis is founded. One can
infer a substantial possibility of the same consequence whenever a particular pattern of
behaviour arises in the future if it has in the past produced specific effects nine out of ten
times. Technical analysis, however, is not entirely logically explicable. Technical analysis is
the study of stock exchange information that is internally generated, not external variables
that affect the stock market.
The volume of stock exchange transactions and the share price, or more generally, the sum of
the statistical data generated by the market, can be used to lower all significant factors,
regardless of what they may be. The most effective stock charting technique, Japanese
Candlestick, Price Curves, Trend Lines, High Low Charts, and Moving Averages are just a
few of the most frequently utilised technical analysis techniques for stock market trading.
Technical analysis is the process of predicting future changes in financial price based on
analysis of previous price changes. Technical analysis does not produce precise future
predictions, just like weather forecasting. Technical analysis, on the other hand, can assist
investors in predicting what is "likely" to happen to prices over time. Numerous charts that
display price history are used in technical analysis.
Stocks, indexes, commodities, futures, and any other tradable instrument where the price is
affected by supply and demand are all subject to technical analysis. Any combination of the
open, high, low, or close for a given security over a given time period is referred to as price.
The time period might be based on intraday (1-minute, 5-minute, 10-minute, 15-minute,
30minute, or hourly) price data could last a few hours or many years. Some technical analysts
also incorporate volume or open interest data into their analysis of price movement.
CANDLESTICKS
Candlestick charting is the most common way to display price movement on a chart. For any
time frame, a candlestick is generated by the price activity within a single time period. Each
candlestick on an hourly chart represents the price action for one hour, whereas each
candlestick on a 4-hour chart represents the price action for four hours. Candlesticks are
"drawn" / formed in the following manner: the highest point of a candlestick represents the
highest price a security traded at during that time period, and the lowest point of a candlestick
represents the lowest price during that time period. The "body" of a candlestick (the
respective red or blue "blocks," or thicker regions, of each candlestick as seen in the charts
above) represents the time period's opening and closing prices. If a blue candlestick body
forms, it means that the closing price (top of the candlestick body) was higher than the
opening price; if a red candlestick body forms, it means that the opening price was higher
than the closing price. Colours for candlesticks are chosen at random. The most popular
colour scheme for candlestick bodies is white and black, which some traders prefer to
employ. Other traders can prefer green and red or blue and yellow. Regardless of the colour
scheme used, it is simple to tell at a glance if a price closed higher or lower at the end of a
specified time period. Since candlestick charts provide more visual signals and patterns than
normal bar charts, performing technical analysis with them is frequently simpler.
As illustrated in the figure below, there are various types of doji candlesticks, each with its
own distinguishing name.
The Long-legged Doji is the most common type of doji, in which the price stretches roughly
equally in either direction, opening and shutting in the middle of the price range during the
time period. The appearance of the candlestick provides a strong visual indication of market
hesitation. When a doji like this develops in a market after an extended uptrend or downtrend,
it is generally viewed as indicating a likely market reversal, or a trend change in the opposite
direction.
When the Dragonfly Doji appears after a long decline, it indicates an impending upward
reversal. The logical meaning of the dragonfly doji is explained by examining the price
activity indicated by it. The dragonfly shows sellers pushing price far lower (the long lower
tail), but price returns to close at its highest point at the conclusion of the cycle. The
candlestick essentially represents a rejection of the extended downward push. The name of
the gravestone doji makes it obvious that it denotes terrible news for buyers. The gravestone
doji, which is the reverse of the dragonfly formation, denotes a strong rejection of an attempt
to raise market prices and implies that a potential downside reversal may come next.
The name of the Gravestone Doji makes it obvious that it denotes terrible news for buyers.
The gravestone doji, which is the reverse of the dragonfly formation, denotes a strong
rejection of an attempt to raise market prices and implies that a potential downside reversal
may come next.
The extremely unusual "Four Price Doji," in which the market opens, closes, and trades
continuously at the same price during the time period, represents the height of hesitation and
a market that has no discernible tendency to move in any one direction.

FUNDAMENTAL ANALYSIS
Fundamental analysis is a technique for assessing the true or "fair market" value of a stock. If
you are a fundamental analyst, you will first do a qualitative analysis in which you will look
at things like the company's management quality, corporate governance standards, earnings
quality, competitive position, and so on. You will then forecast its future earnings based on
these. Intrinsic value can also be defined as the present value of these future earnings. This
computation use the present value approach/model. In the following parts, we will go through
it in depth.
For determining the real value of the stock, you can also employ a strategy known as the
relative value technique. The intrinsic value of a company's shares will be determined here
using the competitive landscape as a basis. You can compare the market prices of your
competitors to a fundamental, such sales, book value, or net income, first.
You can then apply this ratio to the company's fundamentals and make comments on its
value. Here too, similar to the current value technique, you might start your analysis with a
qualitative factor assessment. In further detail, this strategy will also be covered in later parts.
The value determined using one of these techniques is then contrasted with the stock's current
price. It aids in determining if the shares are overvalued or undervalued. If it is overpriced, it
is purchased; if not, it is left alone.
Fundamental analysts look for stocks that are now trading for more or less than what they are
really worth.
A buy recommendation is made for the stock if the fair market value is higher than the
current market price, which indicates that it is undervalued. If the fair market value is less
than the market price, the stock is seen as overvalued, and if the stock is kept, it may be
advised neither to buy nor to sell.
FUNDAMENTAL V/S TECHNICAL ANALYSIS
Fundamental analysis examines all elements, such as financial statements, management
procedures, industry, etc., that may affect a company's stock price in the future. In order to
determine if the stock is under-priced or overpriced, the intrinsic worth of the company is
examined. The foundation of fundamental research is the financial data released by the
company whose stock is being examined. The data is used to calculate ratios and indicators
that show how a firm is doing in comparison to other businesses of a similar size.
However, technical analysis makes use of historical charts, patterns, and trends to predict
future price movements of the company. Price patterns and price movement are used in
technical analysis to construct indicators. Some of the indicators form shapes known as
patterns, such as the head and shoulders pattern, that are named by their shapes. Others
predict what will happen by using trend, support, and resistance lines to show how traders see
investments. The symmetrical triangle or the wedge are two examples.
Stock prices change every minute, thus every investor wants to know the future price trends
of a company's stocks in order to make reasonable investment decisions. Fundamental and
technical analysis are used to explore and forecast the price trend of the stock in the future.
Before Investing, Every New Investor Should Know These 5 Rules
Understand the power of compounding: The key to your future riches rests in the untapped
power of your long-term investment compounding. The earlier one begins to invest, the
longer his investments will yield profits. Furthermore, his returns generate extra returns. At
the end of the day, consistently investing a small sum over a long period of time can
outperform the returns of a larger investment over a shorter time frame. To get the most out
of your stock investment, you must stay invested for the long term, through the market's
boom and bust cycles.
Recognize your investment objectives: Your portfolio should always serve your overall life
objectives. If you create a plan for these life objectives with your financial advisor, your
investment can help you achieve your goals in life, such as saving for your children's
education, purchasing a home or car, or setting aside money for retirement. Many people who
foolishly use the DIY investing approach subsequently regret it when their assets fall short of
their expectations.
Embrace your risk tolerance: The risk involved in market investment varies depending on
the instrument. For instance, mutual fund investing carries a higher risk than fixed deposit
investing. Over time, though, many mutual funds do offer superior returns than fixed
deposits. Be sure to consider your objectives, goals, and risk tolerance before investing in a
market instrument. If stock market advice is coming from a reliable market specialist, only
then should you think about investing in a mutual fund or company shares.
Learn to control your emotions: People frequently compromise on the principles of
common sense and impartiality when they become emotionally invested in their portfolio. It's
possible that your portfolio may experience ups and downs. While the dizzying highs of a
bull market can please you, your investment discipline shouldn't be compromised by a
depressing bear market. As an investor, you must develop the tenacity to constantly maintain
your investments over the long run rather than selling them off during challenging times. It is
usually essential to be logical about your investments when it comes to market investing by
paying attention to reputable stock market gurus.
Appoint a Financial Advisor: Behavioural economics has demonstrated over the past few
decades that consumers frequently take risks with their assets. Their social networks
frequently have an impact on their investment choices. In contrast, individuals frequently
succumb to illogical cognitive biases. Your best ally in navigating such a perplexing
environment can be sound stock market guidance from a reputable stock market expert. You
can prevent yourself from redeeming your assets in a fit of panic by using thoroughly
researched market data and well-founded investment calls.

DERIVATIVES MARKET
A derivatives market is a location for traders to transact in financial instruments including
options, futures, and other derivatives. With diverse goals, several investment types
participate in this market. For instance, some traders enter the market to reduce risk, while
others want to make a profit. Many speculators and hedgers are drawn to the derivative
market because it allows them to increase their profits while putting up less money.
Trading on a derivatives market necessitates a thorough understanding of the market and the
economy. There are dealers on this vast market from all over the world. Its volume and traded
value are almost three to fifteen times more than those of the regular market.
This market can be roughly divided into two segments:

- Exchange-Traded Derivative - Over-the-Counter (OTC)

Exchange-Traded Derivative: This includes the contracts that the market controls and
manages. These contracts trade on a recognised exchange since they are standardised futures
or options contracts. The investor faces reduced risk of default with these contracts. At the
time of signing the contract, the parties must make an initial deposit.
Over the Counter (OTC): Investors have individual contracts with one another. The terms
of the arrangement are kept confidential. These contracts don't have any brokers and don't
trade on any exchange. These contracts are not typical ones. Therefore, the contract's terms
can be simply changed to suit the needs of the parties.
Derivatives Market Instruments
The following are the instruments used by investors and traders in the derivative market:

• Options
• Futures
• Forwards
 • Swaps
Options: It grants the buyer the option—but not the obligation—to purchase or sell the
underlying asset at the agreed-upon price and on the agreed-upon date. An option may be
American, European, or Bermudan depending on when the buyer contracts the contract.
Options entail purchasing call or put contracts.
The majority of individuals probably have no idea what concepts like options trading even
exist since when they think of investing, they often think of buying equities on the stock
market. After all, one of the most popular investment techniques involves purchasing stocks
and holding them for the purpose of generating long-term returns. It's also a perfectly rational
approach to invest, as long as you know roughly which companies you should buy or hire a
broker who can give you advise and direction on these topics. This method, also referred to as
a purchase and hold strategy, can help you accumulate wealth over the long term but offers
next to nothing in the way of short-term benefits. In an effort to generate faster returns, many
investors these days opt for a more active investing approach. It is quite simple for investors
to become more active if they so want thanks to the variety of online brokers that allow them
to conduct transactions on the stock exchanges with only a few mouse clicks. Many people
engage in online trading on a part-time or full-time basis; they frequently buy and sell in an
effort to take advantage of price swings that last for a shorter period of time. They frequently
keep onto their purchases for only a few weeks, days, or even a few hours. Financial
instruments can be actively traded in a wide variety of markets. Trading options is growing
more and more popular as options, in particular, have shown to be quite popular with traders.
We've provided some helpful details on the components of and operation of the options
market on this page.

Futures: Futures are the normal agreements between the parties, much like options.
Additionally, these contracts allow the holder the option to buy or sell the underlying asset at
a predetermined price and time in the future. But unlike options, a futures contract entails
both the right and the duty to execute the contract on or before the deadline set forth in the
terms. These trade on the exchange market since they are standard agreements. A futures
contract is one of these financial instruments where a buyer (the one with the long position)
and seller (the one with the short position) enter into a contract or agreement and the buyer
commits to buy a derivative or index at a specific future time for a fixed price. As time goes
on, the contract's price shifts in relation to the fixed price used for the deal, which affects the
trader's profit or loss. The stock exchanges that settle this deal and stock exchanges keep an
eye on each contract.
Futures traders are divided into two groups: hedgers and speculators. Futures contracts are
used by hedgers to protect against irrational or abrupt future price changes in the underlying
cash commodity. Hedgers are typically businesses or people who deal in the underlying cash
commodity at some point.
For starters, the value of futures is dependent on the value of another derivative, therefore it
has no inherent worth in and of itself. Unlike other financial instruments, the contract is only
valid for a specific time period and has an expiration date.
A stock represents equity in a corporation and can be held for an extended period of time,
whereas futures contracts have a limited time period. This is why, when considering futures
trading, market direction and timing are critical. The use of leverage is perhaps the most
significant distinction between futures trading and other financial instruments.

Forwards: Similar to futures trading, forwards include buying and owning an asset at its
value with the intention of selling it later as an alternative to buying and selling assets at spot
pricing. Traders might depend on the findings of their Fundamental or Technical analysis to
decide if the future delivery price will be less or more than the current spot price when
selecting whether to buy an item at a present rate or through a forward contract. They might
use a forward contract if it is higher.
The end of a forward contract period with an expiry date results in cash settlement. When
price swings in a financial market are excessively volatile, traders can close out their
positions before the underlying asset's delivery date in return for cash, which reduces the risk
of losses. This is especially true in the case of Forex risk management, where cross-currency
swaps use forward contracts to limit the risk of fluctuating exchange rates across international
currencies. Two parties that have divergent views on the potential price of an asset frequently
enter into a forward contract. One party plans to buy a certain item at a lower, predetermined
price because they anticipate the price of that asset to rise in the future and will profit from
the price differential. This party therefore offers to be the buyer. On the other side, the
opposing party believes that the asset's price will decline soon and wants to hedge their risks
by securing a fixed price. Consequently, this party consents to sell.

One of a forward contract's most crucial components is:

Neither are forwards contracts standardised nor are they traded on exchanges. This makes
them more flexible and enables the parties to make specific changes to the agreements with
regard to the traded asset, the amount, and the delivery date.
The parties can settle forward derivatives in either of the two ways. One scenario is one in
which the vendor actually delivers the goods and receives the agreed-upon payment from the
buyer. The other situation involves financial settlements without actual delivery of the asset
in question. Instead, one of the two parties resolves the contract by giving the other party the
necessary financial difference;
One of the most popular methods used by organisations to reduce and hedging interest
raterelated risks is forward contracts. By entering into a forward contract, traders can avoid
paying more money in the future to buy an asset;
Swaps: Through a derivative contract known as a swap, two parties can exchange the
liabilities or cash flows from two various financial instruments. Although the instrument can
be almost anything, most swaps involve cash flows based on a notional principal amount,
such as a loan or bond. The principal typically doesn't change hands. One leg of the swap is
made up of every cash flow. One cash flow is often constant, whereas the other is variable
and dependent on an index price, a benchmark interest rate, or a fluctuating currency
exchange rate.
An interest rate swap is the most typical type of exchange. In general, swaps are not traded on
exchanges or used by regular investors. Instead, swaps are specialised over-the-counter
(OTC) contracts that are made to meet the interests of both parties and are typically made
between businesses or financial organisations.
Basically, swap trading occurs when two parties decide to exchange liabilities or cash flows
based on two different financial instruments. The most popular sort of swap, though there are
many more, is an interest rate swap. A swap is not standardised, it is not traded on public
stock exchanges, and retail investors rarely participate in them.
Swaps, on the other hand, are contracts that are generally transacted over-the-counter between
financial institutions or companies. The parameters of the swap contract are negotiated and
tailored to the demands of both parties because they are exchanged over-the-counter. The
swap derivatives market is dominated by financial institutions and businesses, with hardly
any individual participants.

Types Of Swaps
Exotic swap agreements come in countless variations. Here are a few of the most popular
exchange agreements:
Interest Rate Swaps: A floating interest rate is used to replace a fixed interest rate in the
cash flows of an interest rate swap. In such a swap, Party A consents to pay Party B a fixed
rate of interest on a notional principal over a predetermined length of time at regular
intervals.
Currency swaps: In a currency swap, the principle and interest payments on debt with
various currencies are exchanged between the parties. The principal is frequently not a
notional amount, as it is in an interest rate swap, but rather it is traded together with interest
obligations. Different nations can exchange currencies with one another.
Total Returns Swap: A total returns swap is a transaction in which the total return from a
specific asset is exchanged for a fixed interest rate. A stock or index is the underlying asset,
and the party paying the fixed rate assumes exposure to it. An client, for instance, could pay a
fixed rate to a third party in exchange for exposure to equities, realising the capital growth
and earning any dividend payments.
Commodity Swaps: Swaps of commodities are used to trade cash flows that depend on a
given commodity's price. A party trades a floating rate for a fixed rate in order to set the price
of commodities. For instance, a producer can switch the Brent Crude spot price for a price
that is established over a predetermined time frame. Producers can lock in a predetermined
price and reduce losses due to potential price volatility.
Debt-Equity Swaps: A debt-equity swap entails the exchange of debt for equity and the
other way around. It is a process of financial restructuring in which one party trades or
cancels the debt of another party in return for a stake in the company. This would entail
trading bonds for stocks for a publicly traded corporation. A corporation can restructure its
capital structure and refinance its debt by using debt-equity swaps.
Credit Default Swap (CDS): A credit default swap, often known as CDS, is an agreement in
which one party provides insurance to another in the event that the latter defaults on a loan it
has issued. If the borrower defaults on the loan, the first party agrees to pay the interest owed
as well as any lost principle to the CDS buyer. Credit Default Swap (CDS): A credit default
swap, often known as CDS, is an agreement in which one party provides insurance to another
in the event that the latter defaults on a loan it has issued. If the borrower defaults on the loan,
the first party agrees to pay the interest owed as well as any lost principle to the CDS buyer.

WHAT IS DEMAT ACCOUNT?

Opening a DEMAT Account serves as a safe for the shares or stocks you've purchased, just
like a bank account does for your actual money, which is kept secure in the form of digital
currency for simpler transactions. Your shares and equities are kept in a digital format via
your online DEMAT account, allowing you to monitor price changes.
Previously, shares and stocks were stored as actual receipts. Investors found it challenging to
hold onto the receipts for an extended period of time as a result. Thus, the introduction of the
DEMAT account made it simple for traders and investors to transact instantaneously and hold
shares for as long as they choose. However, in order to do a sell transaction, you must have a
trading account. You won't be able to sell the shares you've bought and retained in the
DEMAT Account without a trading account. Opening a Demat Account provides numerous
advantages, including the elimination of the need to preserve actual receipts, the saving of
time, and the ability for investors and traders to learn and manage their portfolio 24 hours a
day, seven days a week.
WHAT IS A TRADING ACCOUNT?
A Trading Account is an account that allows you to buy and sell stocks and securities across
the country's stock exchanges. The simplicity and ease of carrying out transactions is the
primary benefit of an online Trading Account. You can conduct business online from the
convenience of your own home or workplace, or even while travelling. Furthermore, you do
not need to be concerned about security because all of your transactions are encrypted and
secure.
Remember that you cannot directly approach a depository, either CSDL or NSDL, to open an
online Trading Account. A Trading Account can only be opened through a Depository
Participant (DP), who is a member of a depository. Stockbroking firms in India are typically
registered with either the CSDL or the NSDL. However, Motilal Oswal is registered with
both CSDL and NSDL, and you can select your preferred depository when you start your
online Trading Account.

HOW DO I OPEN A TRADING ACCOUNT ONLINE?

A trading account, like a demat account, is required for stock market investing. This is due to
the fact that in order to trade in the financial markets, you must be registered with the stock
exchange.
Stock brokers are registered exchange members. Traditionally, they perform trades on your
behalf.
Stock brokerage firms frequently have thousands of clients. It is impractical to accept
physical orders from every client on time. To make this process as easy as possible, open an
online trading account. Using this trading account, you can place buy or sell orders online or
by phone, and they will be automatically sent to the exchange via the stock broker.
First, choose a stock broker or firm. Check if the broker is reliable and will accept your orders
on time. Remember that time is of the essence in the stock market. The market price of a
stock can vary in a matter of minutes. As a result, make sure you use a reputable broker.
Examine brokerage fees. Every broker will charge you a fee for processing your orders. Some
may charge more, while others may charge less.
Some offer discounts based on the number of trades completed. Take all of this into
consideration before opening an account. However, keep in mind that it is not required to
select the broker with the lowest fees. High-quality brokerage services may necessitate
higherthanaverage fees.
Next, speak with the Brokerage Company or broker and ask them how to open an account.
Frequently, the company would send a representative to your home with the Know Your
Client (KYC) form and the account opening form.
Complete these two forms. Include two documents that serve as evidence of your identity and
address with your submission. Your application will be checked in person or over the phone,
during which you will be required to provide personal information.
After processing, you will receive information about your trading accounts. Congratulations,
you can now trade on the stock market.

TYPES OF ORDERS
Order types include market orders, limit orders, stop loss orders, and more.
Market order
An order to buy or sell stock at the going rate is referred to as a market order. Your broker
will be instructed to carry out the order at the best rate currently available. A market order
cannot, however, ensure a particular price due to the constant fluctuation of market prices.
Limit order
You should enter a limit order rather than a market order to prevent purchasing or selling a
stock at a price that is either higher or lower than you intended. An order to purchase or sell a
securities at a specific price is known as a limit order. To determine the stock's price, you
might use a limit order. In other words, you wish to sell or purchase a specific stock at a price
different from the going market rate. A limit order can guarantee a price, but it cannot
guarantee that the trade will be executed. This is due to the possibility that market-related
circumstances will prevent the stock from reaching the desired price on that specific trading
day.
Stop loss order
A stop loss order is a regular order sent to a broker instructing them to sell a security when it
hits the trigger price. Market moves might occasionally surprise you. Loss-bearing
transactions are frequently the result of such market reversals. Your defence mechanism is
the stoploss trigger price, which is the level at which you can hold your ground against
unforeseen market fluctuations. For instance, if you purchased a stock at Rs. 10, you can
instruct your broker to sell it if it drops below Rs. 8. In the event that the stock price declines
even further, this helps you avoid further loss. As a result, it aids in containing your loss or
safeguarding unrealized gains, as applicable.

Transaction and brokerage charges of MOFSL Account

opening charges with Motilal Oswal ltd.
The opening of a Demat Account and a Trading Account is the initial stage in stock market
trading. You can store all of your stocks and assets in this account once you've opened a
Demat Account online. Every security or asset, including bonds, Exchange-Traded Funds
(ETFs), mutual fund units, and more, is kept in this database in digital form. Now, you can
only place a buy or sell order using your online Trading Account when you want to buy or
sell these assets. Consequently, in order to trade on the stock market, you must have a
Trading Account. A linked bank account is appropriately credited or debited for any profit or
loss resulting from the transactions.
Steps in opening account with Motilal Oswal-

• Visit the Motilal Oswal official website.

• Fill in and submit the online application form.
• Submission of required documents which includes Identity Proof, Address Proof & PAN
Card Copy.

• Your form and documents will now be verified.

• Post verification, you have to sign a copy of the agreement.

• You will now receive your unique Trading Account number.

• You can now start stock market trading with Motilal Oswal.
Transaction Fee

Trading Account Opening Charges (One Time) Rs 0 (Free)

Trading Annual Maintenance Charges AMC (Yearly Fee) Rs 0

Demat Account Opening Charges (One Time) Rs 0

Demat Account Annual Maintenance Charges AMC (Yearly Rs 400 (Free for 1st
Fee) Year)

Brokerage charges at Motilal Oswal

Customer pays a commission (brokerage) when buying or selling stocks through Motilal
Oswal. The brokerage charges for equity, commodities and currency derivative trading for
Motilal Oswal are explained as below.
Motilal Oswal default brokerage rates.
 Segment Brokerage Fee

Monthly Fee (Fixed)

Equity Delivery 0.20%

Equity Intraday 0.02%

Equity Futures 0.02%

Equity Options Rs 20 per lot

Currency Futures Rs 20 per lot

Currency Options Rs 20 per lot

Commodity Futures 0.02%

Commodity Options Rs 200 Per Lot

Motilal Oswal financial services demat account charges

The Demat account transactions are charged separately from the trading commission.
Particulars Charges

Scheme name AMC Scheme

Account Maintenance Charges (AMC) Rs 400 (Free for 1st year)

Demat Transaction Charges - Within MOFSL (Sell only)

0.03% (whichever is higher)

Demat Transaction Charges - Outside MOFSL (Sell

only)
0.04% (whichever is higher)

Dematerialization (In all schemes) Rs 50 per request + Rs 50 per certificate

Pledge, Unpledged, Closure, Invocation Rs 35 or 0.02% (whichever is higher) per ISIN

request

Motilal Oswal Transaction Charges (Exchange Turnover Charge)

A combination of Exchange Turnover Charge and Trade Clearing Charge.
Motilal Oswal Transaction Charges 2022
Segment Transaction Fee

Equity Delivery NSE Rs 335 per Cr (0.00335%) | BSE Rs 1000 per Cr (0.01%) (each side)

Equity Intraday NSE Rs 325 per Cr (0.00325%) | BSE Rs 200 per Cr (0.002%) (each side)

Equity Futures Rs 200 per Cr (0.002%)

Equity Options NSE Rs 5110 per Cr (0.0511%) | BSE Rs 200 per Cr (0.002%) (on premium)

Currency Futures Rs 125 per Cr (0.00125%)

Currency Options Rs 4200 per Cr (0.042%) (on premium)

Commodity MCX: Rs 250 per Cr (0.0025%)

CHAPTER 2: RESEARCH METHODOLOGY

2.1 Introduction

Methodology is the study of research methodologies, or more properly, a contextual

framework for research, a coherent and logical system based on perspectives, beliefs, and
values that directs the choices researchers [or other users] make.
It consists of a theoretical examination of the body of procedures and concepts linked with a
body of knowledge, with methodologies adopted from various disciplines varied depending
on their historical evolution. This results in a continuum of techniques that span different
perspectives on how knowledge and reality are best understood. This places techniques into
the context of broader ideas and approaches.
Methodology can be represented as a continuum ranging from a primarily quantitative to a
primarily qualitative approach. Although a methodology may traditionally fall under one of
these approaches, researchers may combine ways in order to answer their research aims,
resulting in multimethod and/or interdisciplinary methodologies.
Overall, a methodology is not the same as a technique because it does not seek to deliver
solutions. A methodology, on the other hand, provides a theoretical framework for
determining which method, collection of methodologies, or best practises can be applied to
the research question(s) at hand.
Primary data for the study was gathered through a survey on Google Forms, and secondary
data was gathered online, primarily through websites, articles, and newspapers.

2.2 Objective of study

The stockbroking firm MOFSL has more than 30 years of experience and has successfully
assisted clients in their financial travels. The company has successfully established a niche by
providing services of the highest level. This study should be done given the company's
growing brand recognition. The following clear objectives are the focus of the study:

1. To investigate the trend in the equities market.

2. To understand the basis on which brokers/investors invest their money in shares.

3. To ascertain the amount of public knowledge about MOFSL services.

4. To review the investing services that MOFSL offers.

2.3 Sample size
Sampling is the process of choosing a portion of an aggregate or totality from which a
conclusion or judgement about the aggregate or totality is drawn. The sample size refers to
the number of objects that were thus chosen, which technically constitute the sample.
The sample size for the experiment was 25 participants due to the fact that the research was
restricted to a small geographic area and a small population.

2.4 Sample unit

Any single subject being studied might be referred to as a sampling unit. An individual
person serves as the sampling unit in the context of market research. A single database value
is referred to as a sampling unit. A single university student, for instance, would constitute a
sample unit if you were employing a sample of university students in your research. The
youthful investors in this case served as the sample unit.

2.5 Data collection Method

Data were gathered using primary and secondary sources for the study's objectives.
Primary Data - Primary data is material that has been produced specifically to satisfy the
needs of the current study. The researcher gathers original information by himself. Primary
Data for this study was gathered using a survey on Google Forms.
Secondary Data - Information that is gathered for a reason other than to address the specific
issue under examination is referred to as secondary data. For this study, secondary data were
gathered online, primarily from websites, articles, and newspapers.

CHAPTER 3: LITERATURE REVIEW

Review of literature

There has been substantial research to understand the impact of investment on financial
futures, but there has been little research into the importance of investment from the
perspective of young people. For writing this paper, around 25 articles regarding broking,
investing, markets, and financial instruments, as well as financial services companies, were
downloaded, books by prominent writers were referred to, and relevant pieces from
newspapers were referred to. Before evaluating this paper, the services supplied by MOFSL
and their benefits, as well as an overall overview of the company, were considered after
intensive reading of papers and chapters particularly relevant to the current study.
1. Gaurav Kabra et al. (2010) in this study they want to know the factors influence
investment behaviour and the impact of these factors on risk tolerance and mindset of men
and women while taking investment decisions and is age can be a reason. For analysis, they
used hedging and regression analysis. They concluded that now investors are more matured
and have adequate knowledge but still an individual investor prefers to invest according to
their risk tolerance capacity.

2. Geetha and Ramesh (2012) have found in their study, ‘A Study on Relevance of
Demographic Factors in Investment Decisions’ that demographic factors such as gender, age,
sex, education, occupation, income, savings and family size influence the period of
investment, frequency of investment, reach of information of source and analytical abilities.
The authors revealed that demographic factors have a significant influence over some
investment decisions. It also discloses a general view of investor perception over various
investment avenues.
3. K. Malar Mathi et al. (2012) the objective of this study is to understand individual
investor behavior. Data collected from review the literature, research papers have been
collected from various referred journals related to individual investors’ behavior. They
development of economy depend on the growth of rural market in the country. Lack of
finance in rural is the reason behind for low investment. Shifting to urban for jobs.

4. Jothilingam et al. (2013) carried out examination available literature on the investors’
attitude towards investment avenues. This based on primary data and secondary data. It
proposed that woman investors should enthusiastic to make an investment in avenues other
than gold, like mutual funds, shares, and securities, currency. Conclude that investors
preferred to invest in less risky investment avenues like gold, mutual funds, and bank
deposits. Investor avoids risk as much as they can.
5. Shalini Sah et al. (2013) they wanted to identify the beliefs and attitudes of the
individual investors with regard to financial investment decision making, with particular
reference to the investor biases. They conducted an in-depth study to understand investor
beliefs and preferences. They found that individual investors have numerous beliefs and
preferences that bias their financial investment decisions. They suggested that an
understanding of an individual investor's psychology would help in better comprehending the
way the individual investment decisions are made.
6. Sindhu K. P(2014) The objective of this research paper was to establish the influence
of risk perception of individual investors on their investment decisions in mutual funds. The
risk perception of investors is an important factor that influences investment. This study
based on the review of literature and discussions with experts in the field, identified the
factors influence the risk perception of the investor.
7. Puneet Bhusan (2014) assessed the financial literacy level of salaried individuals
affect their investment preferences towards financial products. Primary data had done to
collect data using a non-disguised structured questionnaire. Multistage sampling method used
in collecting data. There are total of twelve districts in Himachal Pradesh. Out of these three
districts namely Shimla, Solan and Kangra were selected randomly (first stage). Measure the
level of financial literacy of the respondents using OECD approach in the study. Financial
literacy of an individual affects its awareness regarding financial products and investment
preferences. Due to low financial literacy individuals prefers traditional financial products. 8.
Ashly Lynn Joseph and M. Prakash (2014). They have revealed in their paper ‘A Study on
Preferred Investment avenues Among the People and the Factors Considered for Investment’,
that to have an insight into different investment avenues available and to understand the
preferred investment avenue among the people of Bangalore City. In the present day world,
new financial products are available. It has become difficult and confusing to choose the best
options due to lack of proper financial knowledge to the common man to decide the factors
which are considered for making sound investment decisions. It is further analyzed that
investors are not much aware about investment in stock exchange and equity and are more
inclined towards traditional investments like bank deposits, insurance, post office savings etc.
Awareness International Journal of Management, Technology and EngineeringVolume X,
Issue I, JANUARY/2020ISSN NO: 2249-7455Page No: 238
Programs should be introduced by the government and stock broking firms to make people
aware about investment options with their merits n demerits so right decisions are taken for
their personal finance.

9. Devi and Chitra (2014) have revealed in their study, ‘A Study on Salaried Employees
Behavior towards Domestic Savings and Investment in Rasipuram Town’, that the
investment is made by different categories of investors keeping in mind period of investment
avenues, investment decisions taken and level of satisfaction of investors. The data was
analysed with the help of Chi- Square test and F- Test. It was further concluded that investing
has been an activity of rich and business class but today it has become a routine course for
every individual. Moreover, increase in working population, larger family incomes,
provisions for tax incentives, availability of large and attractive investment avenues, etc also
paves a way for saving and investment. The study further recommends that adequate supply
of savings should be maintained as a central policy objective for economic stability

10. Laxman Prasad et al. (2015) the objective of their study was to understand investor
attitude towards investment option selection and to identify what all factors affect the investor
attitude towards investment option selection with special reference to sip. Before investing
investor should do proper research about the risk involved in the investment or it is better to
take suggestions from the asset management company before investment.
11. Uddin. A (2016) this paper is based on the study to find out the motivating factor to
invest in a systematic investment plan and the problem in this scheme. The sample size is 100
respondents who are a SIP account holder in Gandhinagar city in Gujarat and have been taken
for the purpose of the study. Data have been collected from primary sources using the
questionnaire method. Collected data were analyzed using various statistical tools. Results of
the study found that for higher returns with low risk the investor motivates to invest in a
systematic investment plan on the other hand knowledge and the operational platform is one
of the main barriers that investor is facing of the scheme.
12. Fachrudin K.R., Fachrudin K.A (2016) research worked towards determining the
domination of education, experience and financial literacy on investment decisions by
individual investors in the city of Medan. This study used a questionnaire to collect data and
the sample consisted of 250 respondents. Data were analyzed using descriptive statistical
analysis and Structural Equation Modelling. The results showed that investors with
undergraduate degrees are 46.80%. 36.00% of the investor has a maximum of 3 years of
investing experience in the stock market. No significant relationship between education and
investment. Financial literacy is found to build up the links between education and experience
toward investment decisions. The implication is that financial literacy is vital for the right
investment decision.
13. Mahalakshmi Kumar and Rajesh Mankani (2017) research whether working women
are aware of various investment options available with special reference to Mumbai city.
Primary data was collected through a structured questionnaire and a descriptive cross-
sectional design was adopted. Education helps women to become aware of the need to earn,
save and invest. It increases their ability to understand various investment avenues, their pros,
and cons and helps them to make the right investment decisions to achieve their investment
goals. It empowers them to obtain financial independence which in turn can give them
empowerment in other areas as well. Education gives women confidence and the ability to
understand the importance and need for making decisions regarding investment for attaining
their financial goals. This motivates them to collect information about various investment
avenues so that they can maximize returns with minimum risk.
14. Rodrigo et al., (2018) analyzed the disclosure level of the financial instruments given
by the mining organizations situated in the Latin America. The variables considered for the
study were firm’s size, firm’s leverage, firm’s listing status at NYSE, firm’s profitability,
auditor’s type, country infrastructure and internet access where the firm is located. The
sample comprised of 72 mining organizations from Brazil, Chile, Peru and Mexico. Internet
access was rejected as a variable for the disclosure level and firm’s listing status at NYSE,
firm’s profitability and country infrastructure where the firm is located were found to be not
significant. Firm’s leverage partially supported and auditor type did not present a significant
effect on level of disclosure. The firm’s size has a significant effect on the level of
disclosures.
15. Singh (2018), studied the nuances related with hedge accounting as per IFRS 9 in
context of hedge effectiveness requirements. An analysis of fundamental model on which
IFRS 9 hedge effectiveness was based was carried out in this article. The article carried out a
critical review of effectiveness review methods which are commonly adopted i.e. dollar offset
method, relative difference method, variability reduction method and regression analysis. It
was observed that IFRS 9 does enable easing of several hedge effectiveness requirements
although a few areas still require refinement. It was observed that the hedge effectiveness
testing process continues to be inherently difficult requiring acquaintance with and
application of complex statistical techniques and valuation models.
16. Palea (2018), perfomed a wide literature review to discuss the relationship between
financial accounting rules and sustainable development. The study was done on the post
implementation assessment of IFRS in relation to the European Union’s fundamental goal of
sustainable development. The paper questioned the consistency of the International
Accounting
Standards Board’s business view with the EU’s and provided some critical insights into the
potential longrun effects of IFRS on the European economy and society. The study opposed
fair value measurement as defined by IFRS 13 an obsolete tool for socio economic model.
17. Dhankar et al. (2018) examined the perception of Public Sector Banks in India
towards the implementation of IFRS. The 291 responses lead to the following observations :
IFRSbased financial statements will be used not only for external reporting but also for
internal decisionmaking and performance measurement processes in the parent and
subsidiaries. They were positive on the improvement of comparability and transparency of
financial information.
18. Phan et al., (2018) analysed the causal relationships between perceptions and the
willingness of the accountants to adopt IFRS. They concluded that perceived benefits drove
the willingness to adopt IFRS whereas the perceived disadvantages and challenges
diminished the willingness. Knowledge of IFRS enhanced the willingness towards IFRS
adoption. Also, legitimacy desire enhanced the association between the perceived
implications and the willingness to adopt IFRS.
19. Jorissen (2017), analysed the forces that shaped the transposition of EU Directive
2013/34/EU on financial reporting in Belgian legislation to identify the opportunities and
challenges which might hinder or promote the implementation of IFRS for private firms in
Belgium. They also analysed the differences between IFRS and the provisions of Belgian
Company Law and the Royal Decrees on Financial Reporting. They concluded that the
Belgian context was not very conducive for the IFRS to indirectly influence accounting
practices in Belgium or inspire the Belgian legislature and its advisory bodies. They also
submitted that there were no strong indicators for this situation to change in the near future.
20. Sharma et al., (2017) studied the issues and challenges faced by the Institute of
Chartered Accountants of India (ICAI) and it’s members with the implementation of IFRS
based Indian Accounting Standards (Ind AS). A quantitative research approach was adopted,
using a questionnaire survey that provided 192 responses from accounting practitioners and
banking professionals working in India. They studied the perceptions of accounting
practitioners and users about implementation challenges with International Financial
Reporting Standards (IFRSs) at the pre-implementation stage. Respondents acknowledged the
efforts and capability of the accounting body, the Institute of Chartered Accountants of India,
but expressed reservations about training, cost, interpretation, IT infrastructure and staffing.
The accounting practitioners and the users had similar perspectives on the subject of
awareness and preparedness challenges of IFRS implementation
21. Capkun et al., (2016) studied whether the early adoption of IFRS was leading to
greater earnings management or discouraging earnings management. The sample for study
consisted of the firms that adapted IAS/IFRS during the period 1994-2009. The total sample
of 3853 firms across 29 countries with 20,278 firm-year observations was analysed by
splitting them into early adopter sample, late adopter sample and mandatory adopter sample.
The sample was spread across different industries. Inter-temporal tests for changes in
earnings management (smoothing) and cross-sectional tests of differences in earnings
management across samples were conducted. They concluded that early adopters of IFRS
show lower earnings management after voluntary adoption and late adopters and mandatory
adopters exhibited increase in earnings management. They also found that IAS/IFRS
standards that permitted more flexibility and were not having adequate implementation
guidance lead to more earnings management.
22. Shigufta (2016), conducted a qualitative analysis towards the cost-benefit analysis of
transition from locally generally accepted accounting principles (GAAP) to International
Financial Reporting Standards (IFRS). The study was segmented in three parts: developed
nations, East Asian countries and the Brazil, Russia, India and China (BRIC) nations. Various
issues and implications concerning corporate governance, fair value accounting and other
environmental concerns were identified with the adoption of IFRS.
23. Yapa et al., (2015) conducted a two-stage qualitative study of the socio-economic
impacts of IFRS with local accounting standards of Singapore and Malaysia. They used
qualitative research methodology of survey using institutional theory and stakeholder theory
for analysis. They conducted one to one interview with the academicians, accounting
professionals and representatives of accounting bodies of Singapore and Malaysia with 11
interviews in Malaysia and 9 in Singapore. The application of fair value was commonly
identified as a problematic area especially for financial instruments, real estate and
agriculture.
24. Mardini et al., (2015) through qualitative research investigated the perception of
external auditors, preparers, investors and analysts who represented the users of financial
statements in Jordan with respect to IFRS 8 on segment reporting. A semi-structured
interview was conducted with different version for each of the category of interviewee. The
final sample comprised of 9 external auditors, 6 preparers and 14 users (investors and
analyst). The following perceptions were investigated : i) difficulties in implementation of the
standard, ii) management approach of the standard, iii) quantity of information required
compared with IAS 14R, and iv) understandability, reliability, relevance and comparability of
segmental information provided as per IFRS 8. They found that the introduction of IFRS 8
did not seem to cause any difficulties for the Jordanian preparers or external auditors
interviewed. They also found misunderstandings about the management approach under the
new standard and lack of awareness about the use of non-IFRS measures.
25. Weaver et al., (2015) studied the challenges of implementing IFRS at the
organizational level. They carried out qualitative research using semi-structured interviews
with qualified professional accountant who were involved in transition of private and public
sector companies to IFRS. The study was carried out with six auditors and eight consultants
to understand the challenges faced by preparers in transition to IFRS based reporting who had
an aggregated experience of over 170 reporting entities. The major challenges identified by
the study were lack of education and training, lack of management support, lack of futuristic
impact on business due to transition, and issues with capturing the necessary information for
reporting under IFRS.
26. Wagenhofer (2014) studied the role of revenue recognition in performance reporting.
He reviewed the academic literature which examined the importance of revenue in informing
the capital market and performance evaluation. The fundamental accounting concepts
relevant to revenue recognition was described based on the economics of the risk involved in
earning cycle. The new revenue recognition standard of the IASB was evaluated. It was
suggested that having a single revenue recognition principle might lead to failures. It was also
suggested that using different critical events for revenue recognition which was derived from
the resolution of risks along the earnings cycle and for conservatism to handle residual risk of
the benefits of customer contracts was more beneficial.
27. Giner et al., (2012) studied the lobbying of accounting standards with respect to IFRS
2 share based payments. They focused on a detailed analysis of regulations related with share
based payment with respect to IFRS 2. They conducted content analysis of 539 letters which
discussed the documents issued by G4 + 1 and IASB preceding IFRS 2. They found that
preparers of financial statements were the most active group during the initial start of the
project by IASB. Towards the end, the participation of standard setters increased. In the entire
process, IASB was found to be only considered with conceptual arguments rather than the
parties who are contributing the arguments

28. Chua et al., (2012) applied three criteria’s to study the impact of mandatory
implementation of International Financial Reporting Standards (IFRS) in Australia – i)
earnings management, ii) timely loss recognition and iii) value relevance. Top 500 firms by
market capitalization listed on the Australian Stock Exchange (ASK) were included for
preadoption and postadoption periods. The final sample consisted of 172 firms with 1,376
observations. They observed an increase in change in net income during the pre-adoption
period but opposite trend during the post adoption period. There was a significant impact on
the earnings management and timely loss recognition and value relevance.
29. Gebhardt et al., (2012) studied the relevance of financial instruments for non-financial
firms. The study was performed with a final sample size of 4016 firm-year observations for
the period 2001–2009of the firms from STOXX Europe 600 Index. They surveyed the
research on the effects on risk management, on the volatility of cash flows and earnings, on
earnings management and on the effects on user decisions. The descriptive evidence
presented in this paper showed that non-financial firms hold substantial amounts of financial
assets and that there is significant variation in the book values of IAS 39 financial assets
across firms.
30. Laux (2012), studied the relationship between financial reporting and financial
stability. He concluded that there are no evidences that fair value accounting lead to sale of
assets, there might be delay in action by banks due to the accounting and the existing
regulations. He also found that although share prices reacted positively towards the relaxation
of fair value, but the relaxed rules allowed banks to enter financial and regulatory problems.
Fair value was considered more appropriate for the assets which bank wants to hold till
maturity. An investor cannot consider recognition of fair value as a substitute for judging
bank’s risk exposure and validity of reported fair values.
31. Mardini et al., (2012) compared the segmental information disclosures under IFRS 8
and IAS 14R for Jordanian companies. The study was conducted with 109 Jordanian
companies by implementing a disclosure index checklist. They concluded that there has been
a significant increase in the disclosures under IFRS 8 when compared with IAS 14R. The
following were the information collected as a part of the checklist and the study: the number
of segments reported; the number and type of segmental items published; the geographic
segment definitions (areas) used; and the identity of the chief operating decision maker
(CODM)
32. Sunder (2011), raised question on the benefits of granting IFRS a world monopoly.
IFRS monopoly was considered overruling the requirements of financial reporting to meet the
various local variations related with economics, business, commerce, legal, auditing,
regulatory and governance conditions across the globe. References were made to empirical
studies of statistical co-variation across financial reports produced by IFRS.
33. Gebhardt et al., (2011) examined the implications of mandatory IFRS adoption on the
accounting quality of banks in twelve EU countries. They found that the restriction to
recognise only incurred losses under IAS 39 significantly reduced income smoothing. The
study also revealed that the application of the incurred loss approach resulted in less timely
loan loss recognition implying delayed recognition of future expected losses.
34. Aubert et al., (2011) studied the impact of mandatory adoption of IFRS in 26
industries across 13 countries in Europe. They compared the Return on Assets (ROA) as per
the IFRS and local GAAP. Most of the countries showed significant positive differences
except for German and Norwegian firms. The second analysis evidenced that market earnings
are value relevant and timely and discretionary accruals are of high quality when compared
under IFRS than under the local GAAP.
35. Joseph et al., (2010) found that the adoption of the IFRS has increased the value
relevance for investors in equity securities in the EU. The impact of goodwill, research and
development (R&D) expenses and revaluation of PPE on security prices, stock returns and
market-to-book values were evidenced for the study. The study was carried out with a final
sample of 2,298 publicly listed firms from 14 EU countries. They suggested that in the
preIFRS mandatory adoption year, the above three items of interest had greater incremental
value relevance to investors in equity securities. The investors benefited most from
implementing IFRS for goodwill, R&D expenses and asset revaluation in EU countries where
local standards deviated more from IFRS.
36. Atan et al., (2010) studied 100 top Malaysian companies to study the impact of stock
option expenses during the period 2003 to 2005. They found a negative relationship between
the fair value of stock options and dividend yields. They also concluded that the trade/service
sector has more impact followed by the finance sector. Most companies were found to pay
dividends and grant stock options at the same time. They suggested that companies need to
restructure their compensation plan as dividend yield had a negative relationship with fair
value of stock option.
37. Bhattacharjee et al., (2009) studied the prospects of IFRS adoption and its impact on
the financial reporting environment in Bangladesh. The study took into factor the underlying
institutional and economic conditions of Bangladesh. They also discussed about the problems
with the adoption of IFRS in Bangladesh and also the applicability issues. They
recommended establishment of financial monitoring board, inclusion of other stakeholders,
encouraging firms for adopting IFRS and upgradation of education system.
38. Brown et al., (2005) reviewed the ongoing activities related with setting up and
modifying of enforcement bodies for the rigorous and consistent use of IFRS mainly in
France, Germany, the Netherlands and the UK. They provided overview alternative models
used for enforcement, and by describing their activities and proposals for change and
development of the oversight role in the financial reporting process in the EU
39. Jermakowicz (2004) surveyed the application of IFRS in the consolidated financial
statement of Belgian publicly traded companies with the focus on the impact that IFRS
conversion had on companies, their internal organization and accounting and finance strategy.
The study revealed that 65 % companies had reported IFRS as a tool for greater
comparability of accounts and better reporting transparency. The highest challenge identified
in the study was increased volatility in earnings followed by high cost of implementing IFRS.
CHAPTER 4: RESEARCH ANALYSIS AND DATA INTERPRETATION

The majority of individuals are familiar with shares with 82.1%, followed by mutual funds
with 60.7%. Following that with 35.7% of people are familiar with bonds, debentures are
worth 21.4% and derivatives account for 14.3%.
Advertising is important since every business needs to ensure that people can identify them.
Motilal Ostwal financial services company is known to 50% of individuals. 39.3% of
respondents are unaware of or are unfamiliar with the MOFSL, and 14.3 % are unsure.

39.3% of individuals are positive about the stock market and investing, 21.4% are very
positive and 35.7% are neutral about investing in stock market, whilst 7.1% are negative and
3.6% are very negative regarding the same.
People have been investing in the stock market for less than a year in 64.3% of cases. 28.6 %
of people have been active in stock market research for one to five years and 7.1% have been
in the business for five years or longer.
57.1% of respondents say their friends and relatives influence their investment decisions.
25% of people either consult their advisors or service providers or they decide for themselves.
A total of 17.9 % of people site commercials or newspaper articles, and 17.9% of people
invests as a result of workshops and seminars they have attended.
Return on investments is thought to be the most important aspect, accounting for 75% of
respondents, followed by tax benefits with 35.7% and stock market risk levels at 57.1%.
Before making an investment 17.9% of investors take the stock market’s volatility into
account. While 35.7% think liquidity is important before a making an stock market
investment.
Mutual Funds are the financial service that respondents are most interested in, with a
percentage of 57.1 followed by investment banking and wealth management stands out at
35.7% and 46.4% respectively. 39.3% of people are interested in stocks, 7.1% are interested
in trading commodity and 14.3% are interested in broking and distribution.

39.3 % will think about Motilal Oswal when planning their investments. 10.7% of people
won’t think about using the financial services of Motilal Oswal. Additionally, 50 % of
respondents are hesitant to invest in Motilal Oswal.
We learn from this that the vast majority of respondents (67.9%) view the stock market and
investing as opportunities rather than risks (35.7%)
This leads us to the conclusion that, on a scale of 1 to10 the majority of respondents consider
that MOFSL’s services are a 5 out of 10.
 CHAPTER 5:
CONCLUSION
There is some risk involved with purchasing securities on the stock market. The investor must
continuously monitor the market and conduct in-depth study in order to maximize wealth.
Yet, for the average investor, this is a difficult process. The stockbroker can assist the
customer in this situation by offering insightful investing counsel that the investor can take
advantage of.
When interacting with clients, stockbrokers must exhibit sound financial performance and
moral conduct while keeping in mind the agency and principal relationship.
• The following recommendations are made in the context of the above findings:
• MOFSL should concentrate on expanding its network into rural areas in order to serve
more customers;
• They should also shift their focus to more advertising in order to market their products
and services; and finally, the company has performed admirably throughout the
research in terms of the various financial ratios used.
• To stay profitable and competitive in the future, the company must continue to
generate excellent financial performance.
 CHAPTER 6:
SUGGESTIONS
The purchase of securities on the stock market carries some risk. To increase money, the
investor must regularly monitor the market and undertake in-depth research. However, this is
a challenging task for the typical investor. In this case, the stockbroker can help the client by
providing intelligent advice on investing that the investor can use. Stockbrokers must behave
themselves ethically and with good financial performance while dealing with clients while
keeping in mind the agency and principal relationship. Currently, it appears that the
company's financial status is very beneficial overall.
Additionally, MOFSL's strengths, weaknesses, opportunities, and issues were highlighted in a
SWOC analysis of the company's strategic orientation, which aids investors in understanding
the company's financial performance.

CHAPTER 7:
BIBLIOGRAPHY
You've learned everything there is to know about the MO Investor app | Motilal Oswa l nse india

- Search (bing.com)

Technical Analysis - Beginner's Guide to Technical Charts (corporatefinanceinstitute.com)

Equity Market - Overview, History, Importance, Top Equity Exchanges
(corporatefinanceinstitute.com)

Primary Market - Definition, Types & Functions of Primary Market (groww.in)

Bombay Stock Exchange - Wikipedia

Types of Financial Instruments Traded in Stock Market India | NTA® (niftytradingacademy.com )

Derivatives Market – Types, Features, Participants and More (efinancemanagement.com) What

are Swaps in Derivatives, What is Swap Trading - India Infoline

CHAPTER 8:
APPENDIX

1. What kinds of investing instruments are you familiar with?

2. Are you familiar with the financial services company ‘Motilal Oswal’?
3. What image comes to mind when you think about the stock market and investing?
4. How long have you been involved in stock market research?
5. Which technique do you employ to research the stock market before making an
investment in shares?
6. What factors do you think about most while investing into stock market?

7. Which of Motilal Oswal’s financial services are you most interested in?
8. For your investment planning, will you take into account Motilal Oswal financial
services ltd?
9. Thinking about the stock market and investing again, do you believe it is mostly
an opportunity or a risk?
10. How would you rank the variety of services provided MOFSL?