INDUSTRY PROFILE

CAPITAL MARKET
Capital Markets play a major role in a country by providing finance to the companies for operating their businesses. These markets also provide the liquidity option to the shareholders to pay back the shares to take money out of the market. Any investor is willing to invest in the stock, only if they have the option to liquidate and this is only provided through capital market. Capital Market is the market for securities, where companies and governments can raise long-term funds. It provides financing to meet the denomination, liquidity, maturity, risk (with respect to credit, interest rate, and market), and other characteristics desired by those who have a surplus of funds and those who have a deficit of funds.

History of the Indian Brokerage Market

The Indian broking industry is one of the oldest trading industries that had been around even before the establishment of the BSE in 1875. Despite passing through a number of changes in the post liberalization period, the industry has found its way towards sustainable growth. The evolution of the brokerage market is explained in three phases: pre1990, 1990-2000, post 2000. The equity brokerage industry in India is one of the oldest in the Asia region. India had an active stock market for about 150 years that played a significant role in developing risk markets as also promoting enterprise and supporting the growth of industry. Historical records show that as early as 1864, there were about 1,000 brokers with the stock markets functioning from three places in Mumbai; between 9 am to 7 pm at the junction of Meadows Street and Rampart Row, from day break till 9 am and from 7 pm to early hours of next morning at Bazargate. A Report on stock markets around that time indicates that an ordinary broker in 1864 earned about Rs 200 per day, a huge sum in those days. The boom period came to an abrupt end in 1865. Indian brokerage industry dates back to 1850s, but started growing strongly in the 1990safter the creation of the regulatory body, the Securities Exchange Board of India (SEBI) and incorporation of NSE. But competition is intense as there are far too many brokers

-almost double the number of Brokers in the US - competing for a much smaller market. The brokerage market is largely retail and the retail investors are spread across the country (with majority from Mumbai). Online trading channels can play an important part in catering to the regional spread and has indeed shown good growth In 1602, the Dutch East India Company became the first publicly traded company in which shareholders could own a portion of the business. The stocks improved the size of companies and became the standard bearer for the modern financial system. During the 1900s, stock brokerage firms began to move in a direction of market makers. They adopted the policy of quoting both the buying and selling price of a security. This allows a firm to make a profit from establishing the immediate sale and purchase price to an investor. The conflict with brokerage firms setting prices creates the concern that insider trading can result from the sharing of information. Regulators have enforced a system called Chinese Walls to prevent communication between different departments within the brokerage company. This has resulted in increased profits and greater interconnection within the financial industry.

India in Global Markets

The stature and significance of India is growing in the world capital markets. India is not only attracting greater interest from world markets, but is also assuming increasing importance in global finance.
India is a major recipient of foreign institutional flows amongst the emerging

markets. Since the opening up of domestic stock, markets to foreign investors, cumulative net FII Investments reached Rs 517 Bn by 2008 end.
India is major destination of private equity flows into the emerging markets India was host to the annual meetings/conference of the World Federation of

Exchanges (2005) and International Organization of Securities Commission (IOSCO) (2007)

India emerged a trillion dollar market capitalization market in 2007, and was

among the top 10 stock exchanges in the world in terms of market capitalization
India is amongst the top fifteen stock exchanges in the world in respect of equity

turnover
India emerged as a leading player in commodities futures market

 India is amongst the top five in the number of transactions India is among the top five in respect of volume traded in Stock Index Futures and

Stock Futures
India is one of the few markets with extensive dematerialization of shares Indias T+2 securities settlement cycle is at par with the global standards

Indian stock markets have the largest number of listings, with trading taking place in about 2,500-3,000 stocks.
Indias most popular stock index (Sensex) is constructed on the basis of full float

methodology, one of the firsts in the Asian region and a global standard.
Indian market indices such as Sensex and CNX Nifty are listed in foreign

exchanges for trading as ETFs.

Recent Trends
Global risk aversion is unwinding and Confidence levels returning, being reflected

in performance of the indices. Liquidity and credit flows improving Political stability and India re-rating FII and Domestic Flows resuming, USD 7bn FII inflow in April & May
Secondary volumes showing early signs of uptrend, average daily volumes of Rs

800 bn vs. 620 bn in previous year

COMPANY PROFILE
Background and inception of the company

TRUSTLINE SECURITIES LTD was founded in the year 1995 as a K&A SECURITIES PVT LTD by Dr. Mukesh Kansal at Noida in Uttar Pradesh and it was registered under the company act of 1956. Trustline securities are professionally managed group headed by the directors, having vast experience in the stock market. Beside the core promoters, the group is having its full fledge teams headed by young and dynamic professionals like charted accountants, company secretaries, MBAs, IT professionals etc to handle the various divisions of the company. Trustline securities is a Member of the National Stock Exchange (NSE), Trustline security is a Member of the Multi Commodity Exchange (MCX), National Commodity and Derivative Exchange (NCDEX), National Multi Commodity Exchange of India Limited (NMCEIL), to trade in commodities market and it as also started currency trading after becoming the Member of National Stock Exchange (NSC), (MCX-SX). Trustline has entered into Depository services in the business participation with Central Securities Depository Limited (CSDL), National Securities Depository Limited (NSDL) and it has also started the Derivatives trading after becoming a Trading cum clearing Member of NSE in its Future and Option segment. Trustline have a worldwide vision and it along with its associates is currently providing state of the art stock broking services through all the major stock exchanges, they provide all the services are available under the one roof and they are fully equipped with all modern infrastructures to carry on its activities and all branches are well connected through the VPN, Lease line, ISDN, Internet and other network facilities. All of its operations are computerised through the advanced technologies. All branches are ultra modern, hi-tech, well furnished and fully computerized, driven by the well-qualified professionals. With its ability to evolve with changing environment the company has been able to put itself to the forefront of stock broking activities. With its network spreading across various parts of India, it has made a distinct mark among the stock broking the stock broking houses and high net worth corporate as well as individuals.

Nature of the business carried

The nature of the business carried by TRUSTLINE Securities ltd is related with the various things like Portfolio Management Services, Mobilization of Mutual Funds, and Commodities Broking, Marginal Funding as well as Equities Research and online media. TRUSTLINE Securities Ltd plays a key role in India Capital Market by giving different financial services to the investors. Securities broking is a core part of the Trustline Financial

Services Group offerings. Trustline offers broking and distribution of a range of financial products and services.

Vision
To provide world class investment solutions to the class of investors who believe in 'India as a story whose time has come and empower them through technology'. To provide the most useful and ethical Investment Solutions - guided by values driven approach to growth, client service and employee development.

Mission
To empower individual investors to take control of their financial lives, free from the high costs and conflicts of traditional stock broking firms. And to guide all our investors to enlarge their investments by systematic deployment of funds

Objective
We endeavor to be amongst the top ranking highly networked & fully integrated Broking and Financial services house in the country

Services offered by TRUSTLINE Securities Ltd

Equity Derivatives Insurance Commodities Mutual Funds Currency Trading IPO Services Depository Services Investment Advisory Services

AREA OF THE OPERATION

TRUSTLINE Securities Ltd was incorporated in 1995 at Noida in Uttar Pradesh. Initially in 1995 Trustline became the member of NSE equity segment and also gained membership in DSE. And in 2000 TRUSTLINE Securities Ltd became the member of future and option segment in NSE and also became the member of NCDEX in 2004. TRUSTLINE Securities Ltd became the member in BSE for feature and option segment in the year 2006. And in 2007 it started online trading and became the member of NMCEIL. Membership in currency trading was gained in the year 2008 and also TRUSTLINE Securities Ltd became the participant of NSDL in year 2009. And in 2010 Trustline Ltd became the member of MCX-SX. TRUSTLINE Securities Ltd is performing its operation as a one whole organisation in India. Total branches all over India is 510 branches which includes 80 Own Branches,430 Business Associates, 3500 Human work force, 1200 Trading Terminals, 80,000 Demat Accounts, and70,000 Clients, some of the Prominent Institutional Clients are.

FIIs clients are Goldmansachs, Credit - Suisse, Indea Absolute Return Fund, and KARMA Capital. DIIs clients are Unit Trust of India (UTI), Reliance Mutual Fund, Punjab National Bank (PNB), TAURUS Mutual Fund, Canara Robeco Asset Management Company, National Insurance Company and CANBANK Investment Management Services.

Banks are PNB, PNB GIITS, OBC, Central Bank, Canara Bank, Dena Bank, Bank ofIndia.

The primary focus of TRUSTLINE Securities Ltd. is to cater to services in Capital Market Operations to Institutional Investors. The Company is a member of the National Stock Exchange (NSE) and OTCEI. Trustline operates from 80 own branches with 430 business associates about 510 locations across India and has a presence in 510* cities and towns controlling 1200* business locations all over India.

Branches of TRUSTLINE Securities Ltd is as given below

OWNERSHIP PATTERN

The ownership pattern means the management level people who hold and lead the business activities like Board of Director, Company Secretary Etc. TRUST LINE is one of the fast growing financial service providers, which act as an intermediate between the clients and the company and selling of securities. Trustline is now been converted to Ltd company from Pvt Ltd. Dr. Mukesh Kansal is the chairman of the company at present and owns all shares of the company. By the end of this year they will issue IPO.

Trust line Securities Pvt. Ltd: Promoters, Management Team and Business partner Promoters Dr. Mukesh Kansal Management Team Mrs. Sarika Kansal Mr. Vinay Gupta Mr. Siddhartha Chatterjee Mr. Sanjay Verma Mr. Rajiv Kapoor Mr. Amit Goel Mr. Mayank Goel Our Business Partner Mr. P N Vijay Director Director Country Head Strategy and Operations Head Commodities Head Compliance Head Finance Chairman & Managing Director

Competitors Information There are several financial security companies playing their roles in Indian equity market. TRUST LINE is one of the fast growing financial service providers, which act as an intermediate between the clients and the company and selling of securities. Since the growth

of stock trading is tremendously increasing in recent years, so most of the financial institutions are been established in India. Due to this growth most of the investment centers faces competition from may investment firms both domestically and internationally. And here are some of the companies TRUSTLINE face competitions. India bulls financial services ltd. Blue diamond securities and finance ltd. Fortune financial services India ltd Peerless financial services ltd Bonanza financial services ltd India info line ltd JM financial. Infrastructural Facilities Trustline Securities Pvt. Ltd has good infrastructure facilities towards the technical and fundamental activities to customer and employees. The company has offices located at prime location in Mumbai, New Delhi, Kolkata, Bangalore and Chennai. The offices are centrally located to cater to the requirements of institutional and corporate clients and retail clients, and for ease of operation due to proximity to stock exchange and banks. Today they are located in more than 1200 branches all over India. There are air- conditioners, proper lighting and ventilation and Tele communication facilities.
Good network: TRUSTLINE Securities Ltd is using the servers manufactured by

IBM its own server to store the datas related to their clients and also to have a better network facility.
Proper accommodation for its employees: Employees has been provided with better

seating facility for their work, along with the better desktop to trade.
Client support through remote control: Clients are intimated immediately about

any negative or positive movements in their trade, they are intimated through instant messages and by calling the clients.
Excellent back office software: Back office software is the most required for a

broking house to provide service efficiently, TRUSTLINE Securities Ltd in well equipped by best back office software to comfort their employees and clients.

 In - House Call Centre: Quick & Efficient Client Support Each and every branch of

TRUSTLINE Securities Ltd is having call centre with well trained and efficient employees to support client.
Research centres: There are separate research team forms each city locations across

India, to facilitate the customers. Employees are provided with cafeteria to refresh themselves and the organization gives utmost importance to o\preserve the interests of their employees. There are proper ventilation, air conditioners, and telecommunication facilities. Televisions are screened all around the office to facilitate their customers and employees to know about the financial situation of different stocks and country. Seating facilities have been done for their clients, and they are also provided with magazines, and newspapers.

WORK FLOW MODEL

Search for new client Gather client information Approach to the client

If the client is interested to open a Demat Account

If the client is not interested to open a Demat Account and trade Stop here and return to

Collect the client details and required documents Sending the details to the head office for registration Registration process

Call to the client from Head office Client will call to the local branch Start trading

The equity trading procedure at Trustline starts from the process of searching of new clients by employing the agents appointed by HR manager, and also by taking the references from the existing clients including other data base like online. After collecting the information regarding the prospective clients like Business clients, retired persons and other personals. The step after searching new clients is to collect the information of clients related to their economic status and capacity of the client to invest. The further step after collect client based information is to contact the client either through telephone conversation or in person to convince the client to invest in particular area. Information regarding the investment procedure is explained before entering the contract. If client is not interested, agent has to return back, or if client is interested the next procedure is to collect all required documents like PAN card, Address proof, two passport size photos, and blank cheque from the client. After collecting the required documents the next step is to send all the documents of the client to the head office for verification and registration purpose which will take a time period of seven days. If the confirmation received from head office is negative it has to be reconfirmed from the client, if the confirmation is positive client will be informed regarding this and then client is intimated to start trading if he has online account or if client has offline account the trading is done by the broker of the company, by offering various incidental services at the concerned branch. Clients may approach local branch in personal or call the branch to trade. FUTURE GROWTH AND PROSPECTS The company is exploring all steps to improve business through extensive efforts. Since growth of capital market in general has opened up increased opportunities. Trustline is planning to expand its distribution network across India. And Trustline is planning on to focus insurance advisory services and currency trading. Trustline is planning to build strong

foundation for Trustline academy and Trustline real estate service. Trustline is aiming to focus on retail and institutional investors by providing more services and building strong research team in technical and fundamental analysis. Trustline is focusing on satisfying client needs by providing innovative products which satisfies specific needs of customers. Trustline is dedicated on providing best services for their customers by using best available technology.

MCKINSEYS 7S MODEL
INTRODUCTION A framework for Strategic Management, which has received substantial attention of management consultants and strategists, is McKinsey 7-S framework developed in the late 70s by McKinsey Company, a reputed Management Consultancy firm in US. The 7-S frameworks first appeared in The Art of Japanese management by Richard Pascale and Anthony Athos in1981. It was born at a meeting of the four in 1978. The framework rests on the proposition that effective organizational changes is best understood in terms of the multipart relationship between strategy, structure, systems, style, skills, staff, and shared values. The proposition of the 7-S model suggests that there are multiple factors which influence an organizations ability to change and its proper mode of change. Since the variables are interconnected, significant progress cannot be made in one area unless corresponding progress is made in other areas too. The relevance of the model to strategic management is based on the 7-S which stands for policy areas vital to long terms organizational success. The McKinsey 7S model involves seven interdependent factors which are categorized as either "hard" or "soft" elements. "Hard" elements are easier to define or identify and management can directly influence them: These are strategy statements; organization charts and reporting lines; and formal processes and IT systems. ."Soft" elements, on the other hand, can be more difficult to describe, and are less tangible and more influenced by culture. However, these soft elements are as important as the hard elements if the organization is going to be successful.

Hard Elements Strategy Structure Systems

Soft Elements Shared Values Skills Style Staff

Strategy
Strategy sets out vision, mission, objectives, major action plans and policies of the entire enterprises. These set out the picture of the strategy, the Strategic Business Unit (SBU) strategy and the functional strategies. This set out a broad frame work to guide managers at all levels in all functions in their specific short term objectives. The 7-S framework emphasizes hat in practice, the development of strategies poses less of a problem than their execution. There are different types of strategy followed by Trustline and some of them are explained below:Cost strategy

The strategy of Trustline Securities Ltd is to provide best possible services to their customers at lower cost. Trustline provided brokerage charges for their clients minimum of 0.03% for intraday and 0.05% for delivery. So this cost strategy has made Trustline more effective which helps them to attract more number of customers and to achieve cost leadership. Trustline Securities Ltd is charging lower fees for opening accounts for trading when compared with other brokerage houses. Trustline charges Rs 300 for creating offline account and Rs 400 for online account, so this has empowered Trustline efficiency and thus achieve its goal more effectively. Innovation Strategy It is strategy where the companies competitive advantage lies with its new findings and methods. The company outperforms its competitors by offering products and service by using its innovation and new creation. Trustline main focus is on concentrating on customer needs, so Trustline is improving its product menu, by increasing number of different products. Trustline is concentring on product that satisfies specific need of customers. And as so Trustline has bought the scheme of making demat accounts at lower costs and offering special discounts to create demat accounts during special occasions. Trustline Securities Ltd has got insurance broking, and other insurance related services which are effectively satisfying specific needs of customers. Focus Strategy Trustline securities Ltd mainly believes in its performance and hence it concentrates more in making its performance more effective and thus achieves its goal more efficiently. They undergo market research process before they start up a new branch and also in the existing branch areas, in order to avoid any future losses and also analyse what actually the customers prefer in that particular area and thus fill in those loop holes which the other brokers have. Trustline focus on customers like business professionals, software professionals and students concentrates on satisfying their needs. Trustline securities have adopted many promotional strategies to attract customers in order to gain market leadership.

Structure

In the context of 7-S framework structure is an addition to the organizational tool kit. It is comparable with the super-structure of an organization, which indicates to why extent the activities are specialized and the ways in which the organizational tasks are integrated and coordinated.

Organizational Structure of Trustline Securities Ltd is as follow

Chairman and Managing Director

Executive Director Non Executive Director Chie Financial OfficerOperating Officer Chief Chief Technology Officer Secretary Company Chief Compliance Officer

Regional Manager mpliance, Financial, Operating, Technology, Marketing, Human resource and R&D Zonal Manager Branch Manager

Trade

Marketing Account Opening DEMAT Finance Accounts Automation

CRM

Manager FO BO FO

Manager

Manager

FO

BO

BO

Dispatch

Executives

FO

Front Office

BO

Back Office

System
A system means all the procedures, formal and informal, that make the organization go day-by-day, year-by-year. The organization is an open system organization because they interact with environment. The developments in Information System are working wonders in all fields of activity. It becomes possible to send and receive information almost instantaneously. Rapid strides have been made by Trustline Securities Pvt. Ltd in the field of computerization Mini-Computers, Online Computerization of product dispatch and finance and give product details to customers. Accounting System: Financial statements are prepared under the cost convention on an accrual basis and comply with the accounting standards refer to section 211(3c) of the companies Act 1956. Organized set of manual and computerized accounting methods, procedures, and controls established to gather, record, classify, analyse, summarize, interpret, and present accurate and timely financial data for management decisions. Broadridge is the software application used by Trustline securities Ltd to maintain financial datas. Broadridge's Securities Industry Softwares (SIS) Brokerage Accounting System (BAS) is a real-time, integrated processing system that automates brokerage accounting and back office functions. Following are the major components of the BAS System: Account Master Used to establish and maintain accounts within the SIS system. Each account type has a specific account range associated with it. Many different types of accounts can be set up, such as customer, broker/dealer, clearing, inventory, vendor, and transfer agent and reconciliation accounts. ACH The ACH (Automated Clearing House) module allows Trustline customers to electronically transfer funds to their checking or savings accounts.

Tax Reporting

Broadridge/SIS systems provide extensive tax reporting capabilities, at the state, federal and global levels. Reporting choices are widely parameterized, and can be customized to meet the needs of the firm, clients, and products. System Control Provides various security-related, parameter-driven functions which allow Trustline to customize the system to suit operation and management needs.

Staff
The term staff carries a specific meaning in the 7-S framework. It refers to the way organizations induct young recruits into the mainstream of activities and the manner in which they manage their product as the new entrants develop into managers. TRUSTLINE Securities Ltd follows centralised recruitment process, which is most beneficial to the organisation. It reduces the average cost of recruitment per candidate will be relatively less due to economies of scale. This method has gained TRUSTLINE Securities Ltd to have skilled employees with good knowledge and talent. It helps interchange ability of staff among various units/zones. It enables the organisation to have centralised selection procedure, promotional and transfer procedure, etc. It ensures the most effective and suitable placement of candidates. At present Trustline comprises of 3000 employees around India. At present Trustline Malleshwaram head office there are 42 skilled workers and 6 unskilled workers, along with 7 research analysts, 1 branch manager and 2 Assistant managers.

Skill
Skills refers to the distinctive competence which reflects the dominant skills of an organization, and may consist of competence in terms of engineering skills, or competence in the area of new product development, customer service, quality commitment, market power, and so on. Trust line Securities Pvt. Ltd has personnel with a variety of skill like technical and non technical for different field. The company Stock Broker is trained and provided with skills to deal with customers personally to know their needs and wants. Employees of Trust line are evaluated based on

passion, ambition, innovation, diligence, team work. In order to assess the same, company uses a combination of interviews and psychometric assessment as part of section process. Recruitment is not based solely on academic achievements. Company is seeking to appoint candidates who satisfy a broad range of criteria in terms of their ability to make a positive and on-going contribution to the organisation. The Trust line Securities Pvt. Ltd has personnel with varied skills. The sales department needs personnel with technical skill. The marketing department needs sale skill, communication skill, convincing capacity. The Agency Manager and Sales Manager should have the managerial skill. They should have the ability to take right decisions. They should manage the personnel and make them to carry out their responsibility.

Style
Style is another variable, which may determine the effectiveness of organizational change effort. The style of an organization becomes evident through the patterns of action of the top management team over a period of time, the emphasis laid on aspects of business, reporting relationships and aspects of organizational culture. The Trustline Securities Pvt. Ltd is basically a participating and democratic type of leadership style. Before taking any decision a meeting is conducted and the final decision is taken with the consent of all. Every employee gets chance to file his/her opinion. Every employee can participate in decision making of the organization. The final decision is taken with consent of all. It does not take any decision unilaterally. Since every employees ideas and opinions are taken by the managers before arriving at a final decision effective decisions can be taken. Managers are evaluated on the basis of quality of their decision making. Leadership style of managers in Trustline Securities Limited is to treat customers with dignity, respect and care and consistent efforts to improve our skill and services to serve the customers better. Managers of Trustline mainly focus on maintain discipline in the company and give orders and instructions to their subordinate. Managers maintain unity and communication in organization and also quickly respond to customers needs and their query.

Shared Values

Shared values in the Mc Kinseys model refer to the set of values and aspirations that go beyond the formal statement of corporate objectives. In other words, these are fundamental idea around which a business is built and which constitute its main values. Shared values are also known as super ordinate goals. All the members of the organization share the common fundamental idea and the guiding principles around which the business is built. The fundamental idea is to make profit by achieving excellence in the filled of security trading. These values and common goals keep the employs working towards a common destination as a coherent team in satisfying the customer. Value system of Trustline is to conduct the business fairly, with honesty and transparency. The most important in value system of Trustline is they show respect, compassion and humanity towards colleagues and customers around the work and always work for the communities they serve. All employees work cohesively with their colleagues across the group and with the customers and building a strong relationship based on tolerance, understanding and mutual co-operation. Trustline provides valuable guidelines to their customers according to their specific needs.

SWOT ANALYSIS

SWOT analysis refers to the analysing the strengths, weakness, opportunities and threats of the organization (company). SWOT is a compound of two factors namely external factors and internal factors. Strength and weakness are the internal factors. Strengths and weakness are the internal factor which can be controlled by the technical and personnel departments. Opportunity and threats are the external factors which cannot be controlled by the company. External factors may include political factors, socio-cultural factors. Technical factors, Demography, Environmental factors etc.

STRENGTHS: Company has good range of product and service caters to various financial segments.

 Good research team to provide information to clients

Latest technology is used to maintain quality to the fullest like Trustline uses

services from Broadridge to maintain accounting system, and also uses trading software application from Omen sis which allows customers themselves to recover their password.
Trustline securities ltd and K&A securities.com have developed into brands.

Dedicated and expertise staff. Company has good management system, by retaining management professionals having many years of experience in the financial sector.

WEAKNESS: Lack of a banking arm to complete the bank-broker-depository chain. Insignificant presence in institutional segment. To the present market, the technology being used is not up to the standard. There are strict and stringent SEBI procedures.

OPPORTUNITIES: Changing demographics with higher disposable income and increasingly complex financial instruments will drive demand for investment advisory services. Rapid penetration of Internet and computers means that technology enabled financial services will gain market share. Target the rural and sub urban areas. Company is planning to enter into Foreign Trade Markets Changing mindset of customers towards stock market trading. Phenomenal growth in secondary market volumes. Technological improvement are been contributing to attract more personals towards trading. (e.g. Mobile Trading)

THREATS: Volatile movement in indices and events.

Increasing competition with respect to decreasing brokerage charges, (Ex: Reliance

capital entered with least brokerage in the industry)

 Company survival mainly depends on clients atmosphere and market trend. Global competitors entering Indian markets.