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It is with a sense of gratitude, I acknowledge the efforts of entire hosts of well-wishers who have
in some way or other contributed in their own special ways to the success and completion of this
Summer Internship Report.
First of all, I would like to express my sincere thankfulness to my project guide at Edelweiss
Broking Ltd. Mr. Rocky Gupta for his kind advice and support.
I would also like to thank my project guide at Central University Rajasthan Mr. Sanjay Garg who
has been very helpful in the completion of this project.
I express my thanks to entire team of Edelweiss Broking Ltd. Jaipur branch, for their support and
encouragement in completing this project report.
I sincerely thanks to all my friends for their valuable suggestions, motivation and encouragement
throughout my internship and project report.
SADDAM HUSSAIN
DECLARATION
I hereby certify that the Summer Training Report on Financial Services Offered by Edelweiss and
Customer Satisfaction towards The Company, submitted in partial fulfillment for the award of
Master of Business Administration at the Department of Management, Central University of
Rajasthan, Bandarsindri, District Ajmer, is an authentic record of work carried out by me. The
matter embodied in this Summer Training Report has not been submitted for the award of any
other degree or diploma.
Date: Signature
SADDAM HUSSAIN
2017MBA017
TABLE OF CONTENT
1. Introduction........................................................................................(6-7)
1.1 Executive Summary
2. About Organisation...........................................................................(8-14)
2.1 Industry Review
2.2 Company Review
3. Financial Services…………………………………………………………………………..(15-17)
4. Project.............................................................................................(19-25)
4.1 Key Learning
4.2 Outcomes
4.3 Suggestions
4.4 Conclusion
Appendix-1....................................................................................... (26)
5. Reference...........................................................................................(27)
1. Executive Summary
Edelweiss is one of the leading names in the field of financial services with relation to stock
markets and related financial services. Edelweiss has a variety of financial products to cater to
the need of the customers. Edelweiss is a research driven company which prides on the research
that it provides to its client for safe investment in the stock markets. Before entering into retail
Edelweiss used to provide research to different companies working in this field. Edelweiss is
relatively new in the market as compared its competitors but is rapidly making progress and
catching up with them.The main area that Edelweiss gets most of its revenue is through its
advisory services in the area of Merger and Accusation.
India is one of the fastest growing economies in the world and there is lots of potential to grown
in the market. The Indian market is largely untapped as only a small section of the population
invest in the stock market. There is very little awareness of the stock market among population.
People have negative perception about the stock market and the stigma attached to it.
My main aim during the internship was to convince people to invest in the stock market and
answer all there queries and take them into confidence. My job was to generate business by
opening demats account for the company and generating leads for them.
I did a variety of activity to generate business for the company through tele calling., market
visits, setting up canopy, corporate activity. During this various activities my job was to interact
with people, provide them with knowledge about investment opportunities in the stock market
which would earn them handsome returns.
I faced a number of difficulties during my internship period but was able to overcome them
through my knowledge and guidance of my seniors. I also learned a great deal about how to sell
a product and convince people to buy it by solving all there queries. I also learned a great deal
about the stock market and how it works. I also learned a great deal about the stock market and
its various aspects, the way it functions and how to make investments.
2.1 Profile
EDELWEISS started its journey in Mumbai in the year 1995, by two IIM graduates, Mr.
Rashesh Shah and Mr. Venkat Ramaswami. Edelweiss was incorporated on November 21, 1995
as a public limited company and received its certificate for commencement of business on
January 16, 1996. It commenced investment banking activities & registered with SEBI as a
'Category I Merchant Banker' [as defined under the Securities and Exchange Board of India
[Merchant Bankers] Rules, 1992s] and thereafter as a 'Portfolio Manager' [as defined under the
Securities & Exchange Board of India [Portfolio Managers] Rules, 1993s] & as an 'underwriter'
under the Securities & Exchange Board of India [Underwritings] Regulations, 1993. Entered the
business of securities broking in the year 2002 by acquiring Rooshnil Securities Private Limited
which was later changed to Edelweiss Securities Private Limited & is presently known as
Edelweiss Securities Limited. The year 2004 witnessed the foray of Comp. into the businesses of
insurance advisory as well as commodities broking and trading. The business of insurance
advisory is carried through the subsidiary, Edelweiss Insurance Brokers Limited. The subsidiary,
ECAL Advisors Limited carries on the business of commodities broking & trading. The Comp.
also has its presence in non-banking financial activities through its subsidiaries, Cross border
Investments Private Limited [acquired in the year 2000s] and ECL Finance Limited
[incorporated in the year 2005s] which is NBFC's. Edelweiss Real Estate Advisors Private
Limited, which was previously our subsidiary and our subsidiary Edelweiss Trustee Services
Private Limited, were incorporated in the year 2006, for launching the company first real estate
fund which was registered with the SEBI as a 'Venture Capital Fund' [as defined under the SEBI
[Venture Capital Funds’] Regulations, 1996s]
2.2 Overview
The company practice this core thought of “Create Ideas, Create Values” that has led to
Edelweiss becoming one of the leading financial services company in India. Its current
businesses include investment banking, securities broking, and investment management. It
provides a wide range of services to corporations, institutional investors and high net-worth
individuals. The core inspiring thought of ‘ideas creating wealth and values are protecting it’ is
translated into an approach that is led by entrepreneurship and creativity and protected by
intellectual rigor, research and analysis. The company is leading provider of financial services
products and solutions to many HNI around the country.
2.3 Senior management team
2.4 Approach
Client focus: Edelweiss is driven by the emphasis place on building long term relationship with our
clients. We work closely with our clients to equip them with the ability to address large, fast-growing
opportunities.
Execution Orientation focuses obsessively on delivering high quality execution through our
experienced team of professionals; each team is led by senior personnel and is highly research and
ideas driven. It places strong emphasis on confidentiality and integrity in a sensitive business
environment.
Culture- Edelweiss fosters a culture that is entrepreneurial and results driven and that emphasizes
team work and intellectual rigor. Our team is encouraged to display higher levels of initiate drive
and hunger for learning and taking an additional responsibility.
Professional Integrity- It places a strong emphasis on confidentiality, honesty and integrity in our
business dealings. We expect our people to maintain higher ethical standards, both in their
professional and personal lives. We strive to be fair in all our dealings. I respect our competitors.
Research driven all our businesses are built on a research and analytical foundation. Our
understanding of underlying market trends and strong analytical expertise had resulted in a
demonstrated ability to identify emerging trends and themes early. We seek to provide the highest
quality research and investment opinions to our clients.
2.5 Financial Performance at a Glance
3.1.1 Overview
3.1.2 Offerings
Equity Capital Markets - We are in the vanguard of equity capital markets having
brought to the market a large number of successful and path breaking transactions. We
advise leading Indian companies, banks, institutions and businesses which are seeking to
mobilize capital from investors in India and overseas. Within the practice, we provide
opportunities for clients to raise funds through the following – Initial Public Offering
(IPOs) Follow-on Public Offerings(POs) Qualified Institutional Placements(QIP) Rights
Issues Preferential Allotments Foreign Currency Convertible Bonds(FCCBs) Global
Depository Receipts(GDRs)
Infrastructure Advisory
A critical ingredient for sustainable development in India is the pressing need for
Infrastructure creation on a commercially viable basis. This signifies immense
opportunities and challenges for the sector. Recognizing this, Edelweiss’ new
Infrastructure practice has been formed to provide innovative solutions tailored to the
unique financing and advisory requirements of Indian infrastructure projects and
developers. Our team has a dedicated focus on the infrastructure sector, with considerable
experience, a deep understanding and a vast network of key relationships. We provide
Infrastructure project companies and developers the full range of capital and advisory
services.
Edelweiss Capital’s Institutional Equities Business (IE) has become one of the top five domestic
brokerage houses and top three derivatives desks. It is the only brokerage on the Street with a
quant desk that provides a wide product range, servicing all investor categories. The innovative
mindset, unparalleled research, agile sales teams, and intensive execution systems have enabled
us to relentlessly service our clients in different ways. It caters to a wide clientele comprising
leading domestic and international institutional investors, including Pension Funds, Hedge
Funds, Mutual Funds, insurance companies, and banks.
3.3.1 Overview
Edelweiss Asset Management offers a range of investment products and advisory services
across the risk return spectrum to individual and institutional investors. Our close focus on client
requirements is our inspiration in designing products which offer the best opportunity for asset
growth with a constant focus on risk and preservation of capital.
3.3.2 Offerings
Portfolio Management
Edelweiss offers the discerning investor an opportunity to access its asset management
expertise through its portfolio management service (PMS). The basic objective of this
product is to provide unbiased investment management strategy based on rigorous
fundamental analysis while taking cognizance of market conditions and movements.
Mutual Funds
Edelweiss Asset Management Limited follows a research based and process oriented
investment approach. Edelweiss Asset Management Limited is committed to observe the
highest ethical standards while deploying investors’ monies, servicing investors and
dealing with business partners.
3.4.1 Overview
It is a specialized profession where our experts combine their efforts to meet the wealth planning,
investment, and financial management needs of individuals, families, family offices, or
corporate. Edelweiss Wealth Management takes one step closer to you, by providing an "all-in-
one approach”. Advice on asset allocation and thereby creating customized financial solutions
for HNWIs, NRIs, Trusts and Corporate. We offer advisory services on Structured Products,
Portfolio Management, Mutual Funds, Insurance, Derivative Strategies, Direct Equity, IPOs,
Real Estate Funds and Art Funds.
3.5.1 Overview
The Private Client Services Group at Edelweiss is focused on providing products, strategies and
services to High Net worth Individuals and Corporate Clients. We have geographic reach
through our Branches, Channel Partners & Investment Consultants in over 19 locations in India.
The PCG team has highly trained equity professionals, who act as your Equity Advisor. Our ESL
Equity Advisor proactively helps you take informed investment decisions and build a healthy
portfolio. We draw on our strong presence and industry leadership to develop a portfolio of
offerings designed to serve the spectrum of financial needs. Our main objective is to provide
clients with all the tools and services they need to reduce the administrative burdens of managing
money and focus on what you do best - maximizing your trading performance, building your
business, and attracting new sources of capital.
3.5.2 Offerings
Cash Equity
Providing research based advice on select stocks from across sectors to meet client’s
investment requirement ranging from positional trading to long term investment goals.
For our clients I provide ongoing portfolio consultation with a dedicated relationship
manager as one point contact for all day-to-day execution of trades and other service
requirements such as advisory on investments.
Derivatives
Edelweiss being a pioneer in Quantitative & Alternative Research, I leverage this
strength for our derivatives strategies focused towards short-term / medium investments
of clients in PCG. Derivative Strategy group, through its dedicated research team
provides seamless execution for its clients with trading view. The stock ideas generated
are enhanced by combination of technical view and derivative strategy along with the
statistical data. Based on the Quantitative Research products such as Pair Trades & Alpha
Trades are also initiated whenever I identify the opportunity
Financing
I offer various products and services to individuals and corporates with a close focus on
client requirements while designing our products. Over a period of time I have been
offering short term loans against securities and/or to buy new securities. I also provide
finance for investment in primary market issues. I help promoters by financing against
their shareholding to meet their business requirements, expansion of businesses and
diversification of the lines business. I possess expertise in financing short and long term
loan facility, risk analysis, transfer and assessment besides a broad spectrum of services.
3.6 Financing
3.6.1 Overview
Edelweiss Housing Finance Limited (EHFL) is a Housing Finance Company incorporated under
the aegis of the National Housing Bank (NHB). It is part of the Edelweiss Group of Companies.
EHFL has an array of loan solutions which can be tailored to your requirements. If you’re
looking for a Home Loan, do apply to EHFL for the highest loan amount in the shortest time.
Offerings
Home loans
Loan against property
25year loan- The newly launched 25 year home loans help you purchase a property and
repay in lower\easily manageable installments.
Refinancing- If you have already purchased a property used your own funds and
borrowed from friends and relatives for the same, I could refinance the same.
Balance transfer and top-up – if you already have a house loan or a loan against a
property running with any bank or other financier, you could move the same to EHFL a
better rate if interest and a longer tenor, giving you the advantage of a lower EMI. You
can also avail of and additional loan against same property.
4. History of Indian Stock Market
The Bombay stock exchange is the oldest exchange in Asia. It tracks its history the 1850s, when four
Gujarati and one Parsi stock broker would gather under banyan trees in front of Mumbai’s Town Hall.
The location of these meetings changed many times, as the number of brokers constantly increased. The
group eventually moved to Dalal Street in 1874 and in 1875 became an official organization known as
the Native Share & Stock Broker Association. In 1956, the BSE became the first exchange to be
recognized by the Indian Government under the Securities contracts Regulation Act. The Bombay Stock
Exchange developed the BSE SENSEX in 1986, giving the BSE a means to measure overall performance of
the exchange. In 2000 the BSE used this index to open its derivatives market, trading SENSEX future
contracts. The development of SENSEX options along with equity derivatives followed in 2001 and 2002,
expanding the BSE trading platform. Historically and open outcry floor trading exchange, the Bombay
Stock Exchange switched to an electronic trading system in 1995.
The two popular exchanges were majority of stocks are traded as:-
The Bombay stock Exchange also referred to as BSE 30 is a free-float market capitalization-lighted index
of 30-lll-established and financially sound companies listed on Bombay Stock Exchange. The 30
component companies which are some of the largest and most actively traded stocks are representation
of various industrial sectors of the economy. Published since January 1, 1986, the SENSEX is regarded as
the pulse of the domestic stock markets in india. The base value of SENSEX is taken as 100 on April 1,
1979 and its base year as 1978-79.
The National Stock Exchange(NSE) is India’s leading stock exchange covering various cities and towns
across the country. NSE was setup by leading institutions to provide a modern, fully automated
screenbased trading system, with national reach. The Exchange had brought unparalleled transparency,
speed and efficiency safety and market integrity. It has setup facilities that serve a model for the
securities industry in terms of systems, practices and procedures. The NSE key index is the S&P
CNXNIFTY, known as the NSE NIFTY, an index of fifty major stocks lighted by market capitalization. The
products that are traded in National Stock Exchange are:-
Equity and share
Futures(both index and stock)
Options(call and put)
Wholesale Debt market
Retail Debt Market
Indian has emerged as one of the fastest growing economies in the past decade along with China. India
has the largest number of people is the young section of the population. The Indian equity market is
largely untapped with currently less than 5% of the population investing in the stock market for it to
grow further more people are attracted towards the equity market and are moving towards it. Also
since the economy is growing at a rapid pace more fill are attracted towards the Indian markets and are
investing heavily into it.
.
7. Comparison table of Brokerage charges
Edelweiss 0.30% 0.03%
8. Advantages of Edelweiss over its competitors
An easier way to trade with simplified trading pages, brokerage plans based your trading
patterns, live terminal experience and single click execution. The web pages are very easy
to navigate and to do transactions.
Intelligent portfolio tracking by creating multiple sub portfolios according to financial
goals, track investment across assets and personalized advice based on your financial
goals.
24*7 access through mobile service and desktop tools stay updated on stocks portfolios
strategies.
Extreme trader the next generation online trading platform with Dow Jones newswires.
My scope of work during the internship was to generate the business for the company by way
of opening demat accounts . I was given intensive training during the starting of my internship
about the product and details about it like the different brokerage plans, various value added
services provided by the company, extensive research doen by the company to provide the
customers with accurate information and provide the customers with opportunities to earn
handsome returns on their investments.
During my internship I was given the task of calling customers and trying to convince them to
open demat account and investing in the stock market. I also have the track of convince the
customer that investing in the stock market is a better option than investing money in FD, Post
office schemes etc. The average return from the stock market during the past five years is
about 15% p.a. Once I had convinced the client over the phone then the next task was to ask for
a meeting where I would clear my remaining doubts that the client may have and do the
necessary paper work that is required to open an demat account.
Apart from tele calling other ways of generating leads for the company was by way of talking to
people in the market and getting them to invest in the stock market. Taking to them about
ways to which they could start investment in the stock market.
Another way of generating leads way by visiting corporate houses and making presentation to group of
people about how to go about investing in the stock market. How they can minimize their risk and
maximize their returns.
Another activity that I did was to set up canopy in strategic places like vaishali, jhotwara where
there is lots of activity and often visited by people of different background. Where I could get to
speak with people from different profession and dent to know their perspective about stock
markets. Our task was to interact with people and provide them with basic knowledge about
investment opportunities in the stock market. Our primary goal was to generate leads for the
company and getting people to invest in the stock market and clear their misconception that
investment in the stock markets is risky and they would suffer losses.
The main challenge that I have faced was to convince new people to invest and get involved in
the stock market. In India only a very small percentage of the population invest in the stock
market. These are very little awareness about investment opportunities that exists. I had to
start from the scratch in order or them to understand how the stock markets works and that
there investment are absolutely safe and secure. People also have the preconceived opinion
that investment in the stock market is a risky business, they are happy to invest in various other
sources banks, property, jewelry etc. They are of the opinion that once you have invested your
money in the stock market it will never come back. Also they are not ready to trust a private
company that would manage their investments. They prefer to invest in public sector banks and
other govt. companies. They are not all comfortable with the idea of investment in the stock
market even if it could earn them better returns. They are comfortable with whatever they are
earning are not ready to explore new areas.
To get people who are ready active in the stock market to switch to a new company was equally
challenging if not more. Here the problem was to convince people to try out our company and
how I would offer products and services to them than they are already getting from their
existing broking company. It would take a lot of persuasion and convincing, many round of
meetings where I would present our products and let them compare with their existing
products. I would have to offer the clients very low brokerage rates and multiple benefits to get
them to switch. They would demand very low brokerage rates and various other facilities some
of those would not be possible to us to give.
My seniors provided me with guidance and motivation that helped me in my interaction with
the clients and clearing their doubts. They explained to me in detail the various benefits of the
product and how the customer would benefit from it.
The company only concentrates on getting advance brokerage the different brokerage plan that
they are only about advance brokerage. If somebody is not ready to give advance brakerage
than there is noting that the company could offer them. There is no alternate plan with them so
they lose out on customers. Also each plan comes with a predefined turnover volume, which I
feel should not be there and the client should be free to trade as much as he\she wants without
any precondition.
The margin account that the company has were the client do not have to pay advance
brokerage, the brokerage will be charged when the client does a transaction, the brokerage that
the company charges is very high compared to other companies. The brokerage part should be
looked at by the company.
The brokerage plans that the company has been designed according to the needs of the
people who are already investing in the stock markets. There is nothing for the people
who are new to the market and want to start with small amount of money initially. The
brokerage plans are designed keeping in the mind the HNI clients.
The company is also very rigid in its approach; they are not ready to give discounts
beyond a certain point even if it means losing a client. The company should be flexible in
its approach and brokerage plans in order to get new clients.
I believe that the Extreme trader platform that is provided to only those people who
have taken the advance brokerage plans should be made available to those clients also
who have taken the margin account plan. It should be standardized across all plans.
The brand awareness of the company among people is very low as compared to its
competitors; the company has to take steps to create awareness among the people.
This can be done by spending more on advertisements. Sponsorship, promotions etc.
During my internship I learned a great deal about the stock market and how to invest in it. I also gained
knowledge about two basic types of trading in stocks I.e. delivery and intraday. In delivery you have to
hold the stocks for more than one day and in intraday you have buy and sell the stocks on the same day.
I gained knowledge how brokerage is calculated and the different brokerage plans that the company has
to cater to needs of the clients. The clients can choose the plans according to his investment pattern and
volume. I also gained knowledge of various other form of trading the future and options (F&O),
derivatives, debt markets, currency and commodity etc. I also learned about how to size for F&O is
calculated and what type of taxes are levied on it.
My major learning was constraint interaction with different people and trying to sell demat account to
them. I had to put my best foot forward in order to convince people to invest in the stock market. There
was also constant pressure from my team leader to generate business for the company. I was given stiff
targets by our team which I had to achieve. I was made to work under constant pressure which I believe
will help me in the future. I got to know firsthand what pressure is all about and how to work under
constant pressure, how to answer all the queries raised by the clients.
During my internship period I also had the opportunity to test my selling skills and my ability to
convince people. During my internship I got experience about how to talk people and convert
them into clients for the company. I got the test of my skills to be patient and my ability to
listen what the client wants and how I would be able to convert the prospect into client. I got to
understand as to how portfolio (basket of share from different sectors of the industry) is
created keeping in mind the clients preferences and his appetites to take risk.
I also got fair knowledge about how the company is gearing up to face stiff competition from other
similar companies and its vision for future.
13. Conclusion
The one and half month that I have spent in my internship period would be a best period of my life in
which I learned a great deal about the stock market and its functioning. Earlier I had very little
knowledge about the stock market but now I can say that I have fair knowledge about the company and
the stock market. I got fair knowledge about how to work in corporate environment and how to absorb
pressure.
I learned things that are not found in books and those can only be leaned when you are out in the field,
talking to people. I believe this will definitely help me in future. The best part wa the training sessions
that were taken by senior persons in the company to let us know about the various products of the
company and how to approach the customers with these products.
Overall I would say that one and half month of my internship was full of learning and wonderful
experience that it will always keep in mind through my life.