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TRAINING REPORT
ON
SUBMITTED TO:
MAHARISHI DAYANAND UNIVERSITY, ROHTAK
Submitted by
PIYUSH KAPAHI
Regn. No.-1073901752
Is my original work and the same has not been submitted for the
award of any other Degree/diploma/fellowship or other similar titles
or prizes.
(Signature)
Mr. Ajay Patole
<Faculty & Co0ordinator>
<B.E., MBA>
I also thank Prof. Ajay Patole, faculty guide, GGBS, Nagpur who
has sincerely supported me with the valuable insights into the
completion of this project.
Last but not the least; my heartfelt love for my friends, whose
constant support and blessings helped me throughout this project.
1 Cover Page 1
2 Declaration 2
5 Acknowledgement 5
PROJECT CONTENTS
1 INTRODUCTION 8-16
The chief controller of the finance in India is the Reserve Bank of India (RBI) and is
regarded as the supreme organization in the fiscal structure. Other significant fiscal
organizations are business banks, domestic rural banks, cooperative banks and
development banks. Non-banking fiscal organizations entail credit and charter firms and
other organizations like Unit Trust of India, Provident Funds, Life Insurance Corporation,
Mutual funds, GIC, etc.
Mentioned below are certain criterions that are required to be fulfilled for acquiring
government autonomy in India:
The Reserve Bank of India has relaxed its guidelines for the operation of non-bank
finance companies (NBFCs) in India considering the various investments from the
investors. It has also permitted leasing of machinery and rent-buying credit firms with
endowment level rankings to avail public savings increase the maximum limit on the
amount of public investments on these NBFCs that may allow and expand the closing
date for observance on its norms by two years.
In addition, India has entered into new agreements with WTO in the area of fiscal
services in Geneva on December 1997.
The financial sector of India allows Most Favored Nation (MFN) reputation to
all international banks and firms offering financial facilities.
There are 22 stock exchanges in India, the first being the Bombay Stock Exchange
(BSE), which began formal trading in 1875, making it one of the oldest in Asia. Over the
last few years, there has been
a rapid change in the Indian securities market, especially in the secondary market.
Advanced technology and online-based transactions have modernized the stock
exchanges. In terms of the number of companies listed and total market capitalization, the
Indian equity market is considered large relative to the
country’s stage of economic development. The number of listed companies increased
from 5,968 in March 1990 to about 10,000 by May 1998 and market capitalization has
grown almost 11 times during the same period.
The debt market, however, is almost nonexistent in India even though there has been a
large volume of Government bonds traded. Banks and financial institutions have been
holding a substantial part of
these bonds as statutory liquidity requirement. The portfolio restrictions on financial
institutions’ statutory liquidity requirement are still in place. A primary auction market for
Government securities has been created and a primary dealer system was introduced
in 1995. There are six authorized primary dealers. Currently, there are 31 mutual funds,
out of which 21 are in the private sector. Mutual funds were opened to the private sector
in 1992. Earlier, in 1987, banks were allowed to enter this business, breaking the
monopoly of the Unit Trust of India (UTI), which maintains a dominant position.
Before 1992, many factors obstructed the expansion of equity trading. Fresh capital
issues were controlled through the Capital Issues Control Act. Trading practices were not
transparent, and there was a
large amount of insider trading. Recognizing the importance of increasing investor
protection, several measures were enacted to improve the fairness of the capital market.
The Securities and Exchange Board of India (SEBI) was established in 1988. Despite the
The growth of financial sector in India at present is nearly 8.5% per year. The rise in
the growth rate suggests the growth of the economy. The financial policies and the
monetary policies are able to sustain a stable growth rate.
The reforms pertaining to the monetary policies and the macroeconomic policies over
the last few years have influenced the Indian economy to the core. The major step
towards opening up of the financial market further was the nullification of the regulations
restricting the growth of the financial sector in India. To maintain such a growth for a
long term the inflation has to come down further.
The financial sector in India had an overall growth of 15%, which has exhibited stability
over the last few years although several other markets across the Asian region were going
The growth of financial sector in India was due to the development in sectors
The banking system in India is the most extensive. The total asset value of the entire
banking sector in India is nearly US$ 270 billion. The total deposits is nearly US$ 220
billion. Banking sector in India has been transformed completely. Presently the latest
inclusions such as Internet banking and Core banking have made banking operations
more user friendly and easy.
The ratio of the transaction was increased with the share ratio and deposit
system
The removal of the pliable but ill-used forward trading mechanism
The introduction of infotech systems in the National Stock Exchange (NSE) in
order to cater to the various investors in different locations
Privatization of stock exchanges
With the opening of the market, foreign and private Indian players are keen to
convert untapped market potential into opportunities by providing tailor-made
products.
Gurugram Business School, Nagpur Page 15
The insurance market is filled up with new players which has led to the
introduction of several innovative insurance based products, value add-ons, and
services. Many foreign companies have also entered the arena such as Tokio
Marine, Aviva, Allianz, Lombard General, AMP, New York Life, Standard Life,
AIG, and Sun Life.
The competition among the companies has led to aggressive marketing, and
distribution techniques.
The active part of the Insurance Regulatory and Development Authority
(IRDA) as a regulatory body has provided to the development of the sector.
The venture capital sector in India is one of the most active in the financial
sector inspite of the hindrances by the external set up.
The financial sector has witnessed changes in many respects. Banking has seen many
changes in the last two decades, as has the mutual fund business. During the first three
decades after independence, the financial sector and changes in it were largely dominated
by SBI, IDBI, IFCI, UTI, ICICI, and LIC but the last two decades saw a significant
contribution by many other players, smaller in size, but faster on their feet. Each one of
these large players was created with very specific mandates, but with sector-wide
responsibilities. For example formation of SBI was the result of the Rural Credit Survey
Committee recommendation to create an entity that among other things would help the
government in stimulating banking in the entire country. Similarly, the UTI was created
Organisations, which have played defining roles in economies, have often found
themselves at such crossroads because they reach there first. The genius of the
organisation is in identifying the moment as such and in reinventing itself to play a
similar pivotal role again although in a different context. AT&T was one such
organisation, which during the early seventies went through an elaborate exercise of
reinventing itself for the future state of communications business that it envisioned. The
task was not just about being prepared for the future but about preparing to shape the
future of the industry. The major players of the financial markets in India will have to do
something similar; they need to envision the desirable future state of the market and
define their role in shaping the future. This would mean playing a pioneering role once
again in a new context; any other role would probably be insignificant for these
Motilal Oswal Securities Ltd. (MOSL) was founded in 1987 as a small sub-broking unit,
with just two people running the show. Focus on customer-first-attitude, ethical and
transparent business practices, respect for professionalism, research-based value investing
and implementation of cutting-edge technology has enabled us to blossom into an almost
2000 member team.
2011:
Motilal Oswal in association with Zee Business, hosted the first of its series of
seminars under its investors education initiative called Investor Ki Kahani Usi Ki
Zubani on July 2, 2011 at BSE in Mumbai. The seminar saw a colossal turnout
with more than 750 investors attending the session.
Motilal Oswal AMC organized the first edition of Motilal Oswal MOSL Shares
ETF Conclave 2011 at NSE, Mumbai on 15th June, 2011. The event was telecast
LIVE via webcast and the panel discussion was telecast LIVE by CNBC TV18.
Mr. Raamdeo Agrawal was honored with an award for Special Contribution to
Indian Capital Market by Zee Business at the ‘INDIA’S BEST MARKET
ANALYST AWARDS 2011 on April 29, 2011.
Motilal Oswal Asset Management Company becomes India’s 1st AMC to ring
The NASDAQ Stock Market Opening Bell on 30 March 2011, to celebrate the
launch of Motilal Oswal MOSL Shares NASDAQ 100 - India’s First US Equities
Based ETF.
Motilal Oswal MOSL Shares NASDAQ 100 - India’s First US Equities Based
ETF gets listed on NSE and BSE on 31st March, 2011
Motilal Oswal Securities won 4 awards at the ET Now Star mine Analyst Awards
2010-2011. This puts MOSL amongst the Top 3 Award winning Brokers at the ET
NOW Star mine Analyst Awards 2010-2011
2010:
The 15th Motilal Oswal Wealth Creation Study presentation was held in Mumbai
on 15th December 2010 and was covered live on CNBC TV18
Motilal Oswal Securities bagged the Best Performing Equity Broker (National)
Award at CNBC TV18 Financial Advisor Awards 2010 held in Mumbai. CNBC
TV18 organized Financial Advisor Awards 2010, in partnership with UTI MF.
These awards are authoritative evaluation backed by a robust methodology
powered by India’s leading rating house, ICRA.
Motilal Oswal Securities Limited bagged the QualTech Prize for Improvement -
2010 in the Services Category on September 24, 2010. The Award winning project
was a DMAIC project done in Account Opening Department to reduce Account
Opening Turnaround Time.
2009:
Motilal Oswal Financial Services purchased its new corporate office building
based in Prabhadevi, the heart of Mumbai city with a planned usable area of over
2,00,000 sq ft
The 14th Motilal Oswal Wealth Creation Study presentation held in Mumbai in
December 2009 and was covered live on CNBC TV18
MOSL ranked No. 2 (Best Local brokerage) in the Asia Money Brokers Poll 2009
and No. 2 (Best Indian Brokerage House) category by Institutional Investor
Motilal Oswal Private Equity's India Reality Excellence Fund achieved its final
closing of INR 1.64 bn
Motilal Oswal Investment Advisors facilitates the first cross border acquisition by
an Indian company in the sugar sector in Brazil
Motilal Oswal Securities Ltd. rated as No.1 Broker in ET Now - Star mine
Analyst Awards 2009
MOSL was 'Rated No.1 – Best recommendations Mid & Small Caps' and won
awards in 3 out of 4 categories at the Star mine India Broker Rankings 2009 from
Thomson Reuters
Today company is a well diversified financial services firm offering a range of financial
products and services such as
Company has a diversified client base that includes retail customers (including High Net
worth Individuals), mutual funds, foreign institutional investors, financial institutions and
corporate clients. Company’s headquarter is in Mumbai and as of March 31st, 2011, had
a network spread over 548 cities and towns comprising 1,289 Business Locations
operated by its Business Partners and it. As at March 31st, 2011, company had 5, 41,372
registered customers.
In 2006, the Company placed 9.48% of its equity with two leading private equity
investors based out of the US – New Vernon Private Equity Limited and Bessemer
Venture Partners.
The company got listed on BSE and NSE on September 9, 2007. The issue which was
priced at Rs.825 per share (face value Rs.5 per share) got an overwhelming response and
was subscribed 27.18 times in turbulent market conditions. The issue gave a return of
21% on the date of listing.
For year ended March 2008, the company showed a strong top line growth of 91% to
Rs.7 bn as compared to Rs.3.68 bn, last year. New businesses like investment banking,
asset management and fund based activities have contributed to this growth.
Credit rating agency Crisis has assigned the highest rating of P1+ to the Company’s
short-term debt program.
Motilal Oswal Financial Services Limited is the holding company of the following five
subsidiaries:
ACCOUNTS
Maintaining the purchases of stores department
Internal auditing
Payments and receipts
HR & ADMINISTRATION
PAY ROLL MAINTAINANCE: maintenance of employee details like
salary incentives, bonus, and performance records etc
HRD:
Maintain good relationship with the employees
Identifying the less motivated employees and providing the necessary
motivation
Accepting problems of the workers and helps in solving them
BACK OFFICE
· Maintenance of all demat account
· Giving intimation related to the dues of AMC’s to their account holders
· Sends quarterly information to the holders related to the holdings
ADVISORY SERVICES
This is the main function done by the department, MOSL gives every
financial advisory service to investors e.g.: portfolio management, equity
tips, tax planning etc.
ORGANIZATION PROFILE
This has been a strong belief of Mr. Motilal Oswal and he has not only practiced it
himself but also made efforts to inculcate similar values in the employees of the
organization.
He had been elected as a Director of BSE and joined its governing board in 1998. He is
currently a member of various committees of CDSIL and SEBI. He is currently a member
of the NSE committee for F&O.
Mr. Raamdeo Agrawal is the man behind the strong research capabilities at Motilal Oswal
Financial Services Ltd. He is an Associate of Institute of Chartered Accountants of India
and also a member of the National Committee on Capital Markets of the Confederation of
Indian Industry.
Mr. Agrawal specializes in equity research. He has been authoring the annual Motilal
Oswal Wealth Creation Study since its inception in 1996. In 1986, he wrote the book
‘Corporate Numbers Game’, along with co-author, Mr. Ram K Piparia. He has also
featured on 'Wizards of Dalal Street on CNBC TV 18'.
Mr. Agrawal has received the "Rashtriya Samman Patra" awarded by the Government of
India for being amongst the highest Income Tax payers in the country for a period of 5
years from FY95–FY99.
Mr. Navin Agrawal is on the Board of Motilal Oswal Financial Services Limited. He is a
member of Institute of Chartered Accountants of India, Institute of Cost & Works
Accountants of India, and Institute of Company Secretaries of India.
He heads the Institutional Broking business and has been instrumental in building a
market leading position with domestic and foreign institutional investors. Under his
leadership, the firm has been rated as The Best Indian Brokerage House by Asia money
2005. Leveraging on the dominant positioning in institutional business, he has also been
instrumental in building an Institutional Derivatives business when derivative products
were introduced in the Indian markets. Here again, a market leading position has been
established by MOSL.
Prior to joining our Company, he was the Executive Director with Rabo India Finance
Private Limited.
Mr. Maheshvari has 13 years of experience in the financial sector and has held various
senior positions. Previously, he has worked with CRISIL and ICI India Limited.
Mr. Vishal Tulsyan holds a bachelor's degree in commerce from St. Xavier’s College,
Kolkata University, and is a professionally qualified Chartered Accountant from The
Institute of Chartered Accountants of India. He is an all-India rank holder in Chartered
Accountancy.
Prior to joining MOFSL, Mr. Tulsyan was Director, Corporate Finance with Rabo India
Finance Private Limited, a subsidiary of Rabo bank International. He has over 10 years of
experience in corporate finance and has held various senior positions.
Previously, he worked with SBI Capital Markets Limited, Mumbai and ANZ Grind lays
Bank Limited, Kolkata
Mr. Rajat Rajgarhia started his career with his family run broking business in equities.
Post completing his CA and MBA, he joined India info line for a short stint in the
research function. He joined Motilal Oswal in 2001 as a research analyst.
Mr. Rajgarhia then went on to head the research team and now has been associated with
MOSL for over 7 years.
Mr. Rajesh Dharamshi started his career with Hemendra R Sheth (Member of BSE &
NSE) and went on to a very long stint with group. He was Head of Institution of HRS
from 2000-2002.
He than moved on as Sr. VP - Institution Sales Equity & Derivatives for Refco (Now MF
Global).Mr. Dharamshi joined Motilal Oswal as Head of Institutional Derivatives in
2003.
Mr. Jayesh Parekh began his career with ICICI as a management trainee after securing
ranks in Intermediate and Final exams of Chartered Accountancy. After ICICI, he joined
Anand Rathi group and worked in different functions including corporate advisory and
equity research. Post Anand Rathi Securities, he joined SMIFS Securities and worked for
5years as head of research.
Mr. Parekh joined Motilal Oswal in 2003. He was rated #1 sales person for India in the
Asia Money Brokers poll for 2 consecutive years in 2006 and 2007. Mr. Parekh is Head
of Institution Sales for MOSL
Gurugram Business School, Nagpur Page 35
Mr. Manish Shah
Associate Director,
Business Strategy and
Product Development
Mr. Manish Shah is a graduate from the Institute of Cost and Work Accountants of India
and a Certified Financial Analyst from the Institute of Chartered Financial Analysts of
India.
Mr. Shah had a brief stint with a proprietary firm KG Vora in 1991, where he was
involved in developing the IPO Business. In June 1992, he joined Info -Invest Group as
Research Analyst and later was responsible for developing the Institutional and Retail
business. He then worked as a manager at Mafatlal Securities Ltd from July 1995.
Mr. Nitin Rakesh has over 13 years of experience in the Financial Services industry. His
last role was as the CEO and Executive Director of State Street Syntel Services, the JV
between State Street Bank (NYSE: STT) & Syntel (NASD: SYNT). In addition, he has
held various positions in organizations such as TCG Investments and Unit Trust of India
(UTI Mutual Fund). Mr. Rakesh is a B.E. (Computers), Delhi College of Engineering &
an MBA (Finance), NMIMS, Mumbai.
Wealth Management
Broking & Distribution
Commodity Broking
Portfolio Management Services
Fixed Deposits and Bonds
Institutional Equities
Private Equity
Investment Banking Services
Principal Strategies
Wealth Management:-
Financial planning for individual, family and business wealth creation and management
needs. These are provided to customers through our Wealth Management service called
‘Purple’
We offer these services through our branches, Business Partner locations, the internet and
mobile channels. We also have strategic tie-ups with State Bank of India and IDBI Bank
to offer our online trading platform to its customers.
Commodity Broking:-
Through Motilal Oswal Commodities Broker (P) Ltd our fully owned subsidiary; we
provide commodity trading facilities and related products and services on MCX and
NCDEX. Besides access to the best of research in the form of Daily Fundamentals &
Technical Reports on highly traded commodities, our clients also get access to our
exclusive Customized Trading Advice on both the trading platforms. We offer these
services through our branches, Business Partner locations, the internet and mobile
channels
Motilal Oswal group has applied to the regulatory bodies for a license to operate as a
Domestic Asset Management Company (Mutual Fund) and we expect to begin operations
soon.
Motilal Oswal group has worked on fixed deposits and bonds which have issued by the
various companies. Such fixed deposits and bonds have used by the companies to fulfill
their capital needs only. Motilal Oswal Securities Ltd. has offered safety and securities of
the investment, invested by the investors. Anybody can enter/ exit in/from the fixed
deposit and bonds schemes.
Institutional Equities:-
We offer equity broking services in the cash and derivative segments to institutional
clients in India and overseas. These clients include companies, mutual funds, banks,
financial institutions, insurance companies, and FIIs. As at March 31st, 2009, we were
Investment Banking:-
We offer financial advisory services relating to mergers and acquisitions (domestic and
cross-border), divestitures, restructurings and spin-offs through Motilal Oswal Investment
Advisors Private Ltd. (MOIAPL)
We also offer capital raising and other investment banking services such as the
management of public offerings, private placements (including qualified institutional
placements), rights issues, share buybacks, open offers/delisting and syndication of debt
and equity.
MOIAPL has closed 23 transactions in 2007-08 worth US$ 1.8 billion and had 18
mandates in hand as at March 31, 2008.
Private Equity:-
In 2006, our private equity subsidiary, Motilal Oswal Private Equity Advisors Private Ltd
(MOPEAPL) was appointed as the investment manager and advisor to a private equity
fund, India Business Excellence Fund, which was launched with a target of raising
US$100 mn. The fund is aimed at providing growth capital to small and medium
enterprises in India, with investments typically in the range of US$3 mn to US$7 mn.
MOPEAPL will manage and advise the fund and other private equity funds, which may
MOPEAPL has recently launched an INR 750 crores domestic Real Estate Private Equity
Fund called “India Realty Excellence Fund” sponsored by Motilal Oswal Financial
Services Ltd.
Motilal Oswal Securities Ltd. is a well diversified financial services company focused
on wealth creation for customers, such as institutional, corporate, HNI and Retail. The
company services and product offerings include wealth management, portfolio
management, retail broking, institutional broking, assets management, investment
banking etc. They distribute these product through 1289 business locations spread
across 548 cities and the online medium to over 5,41,372 registered customers.
Motilal Oswal capital market pvt. ltd. became the subsidiaries of Motilal Oswal
Securities Ltd. and, in turn of the company. The company made a initial public
offer(IPO) of 2,98,2710 equity shares of rs.5 each in the price band of Rs.725 to
Rs.825 per share. The issue constituted 10.50% of the paid-up share capital.
During the year 2009-10, the company, jointly with their subsidiary Motilal Oswal
securities ltd. acquired an office building at Prabha Devi in Mumbai for a
consideration of Rs. 164.58 crores.
Also Motilal Oswal asset management company became 100% subsidiary of Motilal
Oswal Securities Ltd, which is a subsidiary of the company.
The head office of the subsidiary company of Motilal Oswal Securities Ltd.:-
STRENGTH
Well-established brand
Motilal Oswal is a well-established brand among retail and institutional investors in
India. They believe that their brand is associated with high quality research and advice as
well as our corporate values, like integrity and excellence in execution.
Weakness
The main concern with the brokerage business is cyclicality. Trading volumes
drop sharply during a downturn. When the Indian stock market enters the bear
phase, Motilal Oswal will be affected.
Leading firms are better placed to weather a downturn and may even be able to
accelerate industry consolidation by rolling up smaller firms that have been
affected to a much larger extent.
Right now, under 3% of India's retail assets are invested in stock markets. Cash,
bank deposits, real estate and gold dominate the pie chart on how Indians invest
their wealth.
Further, the stock broking industry is highly fragmented and seeing a gradual
consolidation. Motilal Oswal's growth has outpaced that of the industry and the
company should continue to gain from this consolidation in stock markets.
Rising of FDI
Threats
Existing Competitors
Market Uncertainty